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WE HAVE THE PLEDGE OF ALLEGIANCE FROM[PLEDGE OF ALLEGIANCE]
DANNY LIMA TO THE FLAG OF THE UNITED STATES OF AMERICA, IN INVISIBLE WITH LIBERTY AND JUSTICE ROW.[ROLL CALL]
NOW WE HAVE THE ROLL CALL, DINA.COMMISSIONER RAINEY IS ABSENT.
UM, COMMISSIONER RAINEY IS EXCUSED FROM TODAY'S BOARD MEETING.
ARE THERE ANY OBJECTIONS FROM THE BOARD? SO NO OBJECTIONS.
WE'LL NOW MOVE ON TO THE REGULAR AGENDA, BUT BEFORE THAT, I, UM, DEFER TO COMMISSIONER SCOTT WITH A REQUEST FOR COMMITTEE MEETINGS.
I'D LIKE TO REQUEST, UH, TO CONVENE A MEETING OF THE FINANCE COMMITTEE TO DISCUSS SIGNIFICANT, UH, PROPOSED BUDGET ITEMS FOR FY 26 AND A DISCUSSION ON GAS REVENUE PASS THROUGH REVENUE AND AB 32 REVENUE.
UH, THE DATE FOR THE COMMITTEE MEETINGS WILL BE SET AFTER CONSULTING WITH STAFF, UH, BUT NO LATER THAN TWO WEEKS FROM TODAY.
UH, I'M HAPPY TO ENTERTAIN ANY QUESTIONS FROM MY FELLOW COMMISSIONERS.
WHO, WHO IS ON THAT FINANCE COMMITTEE? DO YOU HAVE? SORRY.
COMMISSIONER SHANNON IS SO, YES.
UH, COMMISSIONER SCOTT AND COMMISSIONER SHANNON COMPRISED THE FINANCE COMMITTEE AND THE INFRASTRUCTURE COMMITTEE IS, UH, COMMISSIONER SCOTT AND MYSELF.
UH, SO SECOND, REQUEST TO CONVENE A MEETING OF THE INFRASTRUCTURE COMMITTEE TO DISCUSS FIRE HYDRANT INSPECTION RECORDS, SERVICE REPORTS AND OUT OF SERVICE FIRE HYDRANTS.
DISCUSSION ON FIRE HYDRANT FLOW TESTING, INSPECTION AND MAINTENANCE, MAINTENANCE PROCEDURES, UPDATE ON CAMPUS CONSOLIDATION STAFF REPORT ON ALTERNATE USES AND MARKET VALUE OF LBU CAMPUS ASSETS.
UH, THE DATE FOR THE COMMITTEE MEETING WILL BE SET AFTER CONSULTING WITH STAFF, BUT NO LATER THAN TWO WEEKS FROM TODAY.
AND I'M HAPPY TO ENTERTAIN ANY QUESTIONS FROM FELLOW COMMISSIONERS.
THANK YOU, COMMISSIONER SCOTT.
UH, I ASK THAT YOU WORK WITH DINA TO SCHEDULE AND WE WE'LL MOVE FORWARD WITH THOSE MEETINGS.
THE FIRST ITEM ON OUR AGENDA TODAY
[1. 25-54390 Recommendation to approve February 6, 2025 Board meeting minutes. Suggested Action: Approve recommendation. ]
IS TO APPROVE, UM, THE MINUTES FROM THE FEBRUARY 6TH, 2025 BOARD MEETING.ARE THERE ANY PUBLIC COMMENTS? ANY COMMISSIONER COMMENT? SEEING NONE, I HAVE, DO I HAVE A MOTION MOVE APPROVAL AND DO I HAVE A SECOND? SECOND.
ANY THE OPPOSED? THE MOTION CARRIES.
[2. 25-54391 Recommendation to receive and file the annual update from Carpi & Clay on federal legislative advocacy and lobbying services. Suggested Action: Approve recommendation. ]
IS TO RECEIVE AND FILE THE ANNUAL UPDATE FROM CARPE AND CLAY ON FEDERAL LEGISLATIVE ADVOCACY AND LOBBYING SERVICES.GOOD MORNING, PRESIDENT MCGUIRE AND COMMISSION.
TODAY WE HAVE WITH US JULIE MINERVA FROM CARPE AND CLAY.
SHE'S HERE TO GIVE US A FEDERAL OUTLOOK ON WHAT IS HAPPENING IN WASHINGTON DC TO THE BEST OF ANYONE'S ABILITY.
OF COURSE, MUCH HAS CHANGED SINCE THE, UM, THE PRESIDENTIAL ELECTION AND THE INAUGURATION EARLIER, UM, LAST MONTH AND EVEN SINCE THE LAST TIME WE MET HERE WITH THIS BOARD.
SO JULIE WILL BE, UM, GIVING A, A, A BRIEF UPDATE WHEN THE PRESENTATION, WHICH WAS PRODUCED ABOUT TWO WEEKS AGO.
AND SO THERE ARE SOME CHANGES TO IT.
UM, AND OUR LEARNING FROM THE LAST TRUMP ADMINISTRATION, UM, THE, THE, THE EXPERIENCES THAT WE WENT THROUGH AT THAT TIME, APPLYING THEM TO, UM, HIS CURRENT ADMINISTRATION NOW AND RECOGNIZING THAT THERE ARE SOME SIGNIFICANT DIFFERENCES, UM, IN THE WAY THAT THEY ARE PURSUING, UM, CHANGES TO MASSIVE CHANGES TO FEDERAL POLICY.
UM, THE GOOD NEWS IS, AS ANNA TOLD, NOTED, YES OR LAST, LAST BOARD MEETING, THIS, THIS BOARD AND THIS DEPARTMENT HAS HISTORICALLY ADOPTED BUDGETS, UM, WITH THE EXPECTATION THAT GRANTS BE AN ADDITION TO, UM, BUT NOT A REQUIREMENT OF IMPLEMENTING THE BUDGETS THAT WE ADOPT LOCALLY.
SO THAT IS, UM, UNIQUE TO US AND I THINK PUTS US ON A MORE SOLID FOOTING RELATIVE TO, UM, ALL OF THE DYNAMIC, UM, WORDS AND, UM, PROPOSALS THAT
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ARE COMING FROM WASHINGTON DC.SO WITH THAT, JULIE, THANK YOU, DIANA.
AND THAT WAS, UM, A PERFECT INTRO TO HOW THINGS ARE.
WE DO HAVE A LOT OF CHANGES IN WASHINGTON DC BUT WE HAVE A LOT OF CONSISTENCIES THERE AS WELL.
UM, SO GOOD MORNING COM, UM, COMMISSIONERS AND PRESIDENT MCGUIRE.
IT REALLY IS A PLEASURE TO BE HERE.
I'M A PARTNER AT CAR AND CLAY IN WASHINGTON DC AND WE HAVE HAD THE PLEASURE OF REPRESENTING LONG BEACH UTILITIES IN WASHINGTON, DC UM, FOR ABOUT THE PAST DECADE, UH, FOR ME.
SO IT'S GREAT TO BE HERE, AS ALWAYS.
UM, I'VE BEEN IN WASHINGTON, DC SINCE THE SUMMER OF 99 WHEN I MOVED OUT FROM NORTHERN CALIFORNIA.
TOOK A JOB UP ON CAPITOL HILL, AND I, I STAYED, CALIFORNIA WILL ALWAYS BE HOME, UM, TO ME, BUT I'VE BEEN CONSISTENTLY WORKING OUT THERE FOR THE PAST 25 YEARS.
SO I HAVE SEEN A LOT OF TRENDS.
I CAN WALK YOU THROUGH WHAT WE THINK IS CONCERNING AND WHAT WE THINK IS BUSINESS AS USUAL AND JUST DONE WITH A VERY DIFFERENT MEGAPHONE IN HAND.
SO I JUST WANNA MAKE SURE THAT, UM, I ECHO DI UM, DI DIANA'S COMMENTS THAT WE ARE SEEING CHANGES, BUT NOT EVERYTHING IS GOING TO CHANGE, AND THIS IS GOING TO BE A PROCESS GOING FORWARD.
SO WITH THAT, I THINK IT'S ALWAYS GOOD TO OPEN UP WITH A SLIDE ON THE BALANCE OF POWER IN WASHINGTON DC WE HAVE AN INCREDIBLY TIGHT MARGINS IN BOTH THE HOUSE AND THE SENATE.
AND IN PARTICULAR, WE HAVE THE CLOSEST MARGINS IN THE HOUSE THAT WE'VE HAD SINCE 1931.
SO WHEN YOU TALK TO MEMBERS ON THE HOUSE SIDE, WHEN YOU TALK TO PEOPLE LIKE REPRESENTATIVE GARCIA, HE WILL TALK IN TERMS OF THE NEXT 18 MONTHS, NOT THE NEXT FOUR YEARS, BECAUSE EVERY TWO YEARS THE HOUSE IS UP FOR REELECTION.
AND IT'S VERY POSSIBLE THAT WE COULD SEE A CHANGE IN THE BALANCE OF POWER IN THE HOUSE.
RIGHT NOW, THERE ARE TWO VACANCIES.
WE'RE EXPECTING TO HAVE A THIRD VACANCY SOON.
THAT'S BECAUSE ELISE STEFANIK, WHO IS A MEMBER FROM UPSTATE NEW YORK, HAS BEEN NOMINATED BY THE PRESIDENT TO SERVE IN THE ADMINISTRATION.
SHE HASN'T GIVEN UP THAT SEAT YET, BUT WE EXPECT HER TO DO SO VERY, VERY SOON.
SO THIS, UM, THIS MARGIN IS GOING TO GET EVEN MORE RAZOR THIN THAN IT IS RIGHT NOW.
WHEN YOU TAKE INTO CONSIDER THOSE KINDS OF DYNAMICS, YOU HAVE TO LOOK AT, UM, KNOWING THAT IT TAKES 218 VOTES TO GET ANYTHING THROUGH THE HOUSE OF REPRESENTATIVES.
SO IT'S VERY HARD TO GOVERN ON THE HOUSE REPUBLICAN SIDE WITHOUT TRYING TO BRING REPUB, UH, DEMOCRATS ON BOARD IN SOME MANNER.
WE'VE SEEN THAT HAPPEN TIME AND TIME AGAIN ON BIG PIECES OF LEGISLATION.
THE ANNUAL APPROPRIATION, BILLS, DISASTER, SUPPLEMENTAL BILLS, NONE OF THOSE HAVE GOTTEN THROUGH WITH JUST REPUBLICAN VOTES ALONE.
THEY'VE ALWAYS NEEDED SOME SUPPORT ON THE DEMOCRATIC SIDE OF THE AISLE, AND WE DO NOT SEE THAT CHANGING WHEN YOU TAKE A LOOK AT THE SENATE AS WELL, VERY, VERY CLOSE MARGINS, BUT IT'S A DIFFERENT DYNAMIC THERE.
THE SENATE, UM, THEY SERVE FOR SIX YEARS.
ONLY ONE THIRD OF THE SENATE WILL BE UP IN TWO YEARS.
SO THE CHANCE OF SEEING THAT FLIP IS A, IS PROBABLY NOT AS LIKELY AS POTENTIALLY SEEING THE HOUSE FLIP IN THE NEXT 18 MONTHS.
SO MOVING ON TO YOUR CONGRESSIONAL DELEGATION, YOU HAVE A TREMENDOUS DELEGATION.
OF COURSE, YOU ARE LED IN THE HOUSE BY CONGRESSMAN ROBERT GARCIA IN THE HUNDRED AND 19TH CONGRESS.
HE HAS MADE A, UM, A MOVE OVER TO THE HOUSE TRANSPORTATION AND INFRASTRUCTURE COMMITTEE.
SO HE MOVED FROM THE HOUSE HOMELAND SECURITY COMMITTEE WHERE HE HAD BEEN ASSIGNED AS A FRESHMAN MEMBER OVER TO HOUSE TNI, SO HE CAN REALLY DIG INTO A LOT OF INFRASTRUCTURE ISSUES OF IMPORTANCE TO YOU.
AND SO HE'S VERY, VERY HAPPY TO BE A MEMBER OF THAT PARTICULAR COMMITTEE.
HE'S ALSO A MEMBER OF THE OVERSIGHT AND REFORM COMMITTEE, AND HE IS THE ONLY CALIFORNIA MEMBER WHO'S BEEN SELECTED TO SERVE ON THE DOGE SUBCOMMITTEE.
SO YOU'VE LIKELY SEEN A LOT OF PRESS CLIPS FROM HIM LATELY THAT IS DRAWING A LOT OF ATTENTION THERE.
BUT HE REALLY IS STANDING UP FOR THE VALUES OF CALIFORNIA AND HIS DISTRICT IN THAT CAPACITY.
LIKEWISE, YOU'VE GOT, UH, CONGRESSMAN BARGON WHO CONTINUES TO SERVE ON THE ENERGY AND COMMERCE COMMITTEE.
THAT'S A VERY POWERFUL COMMITTEE WHEN WE TALK ABOUT THINGS RELATED TO THE ENVIRONMENTAL PROTECTION AGENCY, WATER QUALITY, AIR QUALITY, THOSE TYPES OF ISSUES, SHE'S REALLY BEEN A STRONG LEADER ON SINCE COMING TO CONGRESS.
AND THEN WE MOVE OVER TO THE SENATE SIDE OF THINGS WHERE YOU HAVE SENATOR PADILLA, WHO IS THE SENIOR SENATOR FROM CALIFORNIA, AND WE HAVE, UM, OF COURSE OUR NEW JUNIOR SENATOR FROM THE STATE, ADAM SCHIFF, UM, CON, EXCUSE ME, SENATOR SCHIFF GOT SWORN IN LATE IN CALENDAR 2024, AND THEN GOT SWORN IN AS A NEW MEMBER
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OF THE HUNDRED 19TH CONGRESS HERE IN JANUARY.SO HE HAS A LITTLE, LITTLE BIT OF A, UM, A LEG UP ON THE REST OF THE NEW FRESHMAN MEMBERS OF THE SENATE BECAUSE OF THIS SPECIAL SEAT THAT WAS BEING FILLED BY, UH, FORMER SENATOR BUTLER.
BUT SENATOR SCHIFF IS REALLY WORKING TO BUILD OUT HIS TEAM, AND THEY ARE TREMENDOUS.
HE BROUGHT OVER EVERYBODY FROM HIS HOUSE STAFF TO HIS SENATE STAFF.
HE'S GOT A LOT OF CONSISTENCY FROM PEOPLE WHO'VE WOR BEEN WORKING IN THE CALIFORNIA DELEGATION FOR YEARS.
UM, AND SO THAT'S A REALLY TREMENDOUS OFFICE TO BE WORKING WITH.
IN TERMS OF COMMITTEE ASSIGNMENTS, BOTH SENATORS ARE CURRENTLY SERVING ON THE ENVIRONMENT AND PUBLIC WORKS COMMITTEE.
AND OF COURSE THAT COMMITTEE IS VERY IMPORTANT.
WHEN WE TALK ABOUT INFRASTRUCTURE ISSUES, THEY WILL BE LEADING EVERYTHING THAT IT RELATES TO FOR THE EPA, EVERYTHING FOR THE US ARMY CORPS OF ENGINEERS, EVERYTHING FOR SURFACE TRANSPORTATION, EVERYTHING FOR PERMITTING REFORM.
SO THAT'S REALLY A COMMITTEE TO WATCH.
I WILL SAY IT'S A LITTLE BIT UNUSUAL TO HAVE BOTH SENATORS SERVE ON THE SAME COMMITTEE.
UM, SO WE COULD SEE SOME CHANGES AS THINGS MOVE FORWARD, BUT IT'S REALLY A GREAT PLATFORM FOR BOTH SENATORS TO BE ON AS IT RELATES TO ALL OF THE INFRASTRUCTURE NEEDS FOR THE STATE.
SO MOVING FORWARD, THIS SLIDE JUST SORT OF CAPTURES A FEW OF THE OTHER COMMITTEES THAT ARE OF, OF IMPORTANCE TO YOU, UH, BECAUSE OF THE ISSUES THAT YOU'RE WORKING ON.
SO THINGS LIKE THE ENERGY AND NATURAL RESOURCES COMMITTEE, ENERGY AND COMMERCE, TRANSPORTATION AND INFRASTRUCTURE WAYS AND MEANS, WHICH HANDLES THINGS, UH, LIKE TAX AND TRADE THAT WE'RE ALL KEEPING AN EYE ON BECAUSE OF THE BIGGER ECONOMIC IMPACTS OF THOSE DECISIONS COMING FROM THE WHITE HOUSE.
AND THEN OF COURSE, THE APPROPRIATIONS COMMITTEE, WHICH DOES FUND, UH, VARIOUS PROGRAMS AND PROJECTS ON AN ANNUAL BASIS.
SIMILAR GROUPING OF, UM, COMMITTEES HERE OVER ON THE SENATE SIDE.
THEY ALL JUST HAVE DIFFERENT NAMES, SLIGHTLY DIFFERENT JURISDICTIONS, BUT THESE SORT OF JUST CAPTURE ALL OF THOSE COMMITTEES THAT WE PAY ATTENTION TO FROM YOUR PORTFOLIO OF PRIORITIES OUT AT THE FEDERAL LEVEL.
UM, WHEN YOU TAKE A LOOK AT THE RANKING MEMBERS AND THE CHAIRS THERE, SOMETIMES WE LIKE TO SEE IF YOU CAN MAKE MORE FRIENDS IN MISSOURI OR MAKE MORE FRIENDS IN OKLAHOMA, OR MAKE MORE FRIENDS IN STATES WHERE WE'VE GOT LEADERSHIP FROM, UM, FROM THOSE PARTICULAR STATES THAT WE WANNA MAKE SURE THEY UNDERSTAND WHAT CALIFORNIA PRIORITIES LOOK LIKE AS THEY'RE PULLING TOGETHER BIGGER PIECES OF LEGISLATION.
SO IF ANY OF THOSE, YES, OF COURSE.
UM, COULD YOU GIVE US A LITTLE, UH, POLITICS 1 0 1 AS TO HOW THEY, UH, HOW THESE MEMBERS ARE CHOSEN TO SERVE IN THE COMMITTEES AND HOW, HOW SOMEBODY GETS TO, TO BE A CHAIRMAN? OH, OF COURSE.
SO, UM, AT THE START OF EACH CONGRESS, THEY WILL GO THROUGH A COMMITTEE ORGANIZATION PROCESS, AND THEY WILL START WITH THE MOST SENIOR MEMBERS OF CONGRESS WHO WANT TO MOVE UP TO A NEW COMMITTEE.
SO, LIKE ANYTHING, COMMITTEES ARE RANKED AND TIERED IN TERMS OF SENIORITY AND POWER.
SO IF YOU'RE, UH, UM, IN YOUR, LET'S SAY SOPHOMORE OR JUNIOR YEAR OF BEING A MEMBER OF CONGRESS AND YOU WANT TO MOVE UP, YOU'RE TYPICALLY LOOKING TO MOVE TO THE WAYS AND MEANS COMMITTEE OR THE APPROPRIATIONS COMMITTEE.
SO MEMBERS ON THE STEERING COMMITTEE, THE HOUSE WILL HAVE ONE FOR THE DEMOCRATS AND ONE FOR THE REPUBLICANS.
AND THE STEERING COMMITTEE WILL TAKE INTO ACCOUNT PEOPLE WHO WANT TO MOVE TO THOSE COMMITTEES.
AND YOU'LL ACTUALLY INTERVIEW WITH THE COMMITTEE.
YOU'LL DO A SLIDE PRESENTATION.
YOU'LL TALK ABOUT YOUR DISTRICT, YOU'LL TALK ABOUT YOUR PRIORITIES.
YOU MIGHT DO A LITTLE FUNDRAISER HERE AND THERE.
YOU MIGHT PASS AROUND CHOCOLATE BARS OR SOMETHING FROM YOUR DISTRICT.
LIKE YOU WILL USE EVERY RESOURCE POSSIBLE TO WIN OVER THAT STEERING COMMITTEE.
AND THE STEERING COMMITTEES MAKE RECOMMENDATIONS, AND THEN THE PARTIES ACTUALLY VOTE IN THAT MANNER.
SO THAT'S HOW PEOPLE MOVE UP THROUGH THE RANKS.
UM, ON THE, WITH RESPECT TO THE, THE COMMITTEE LEADERSHIP, THE REPUBLICANS HAVE IN PLACE TERM LIMITS FOR THEIR COMMITTEES.
SO IF YOU WERE CHAIRMAN OF THE HOUSE TRANSPORTATION AND INFRASTRUCTURE COMMITTEE, AND I'M USING THIS ONE IN PARTICULAR, UM, BECAUSE CHAIRMAN GRAVES FROM MISSOURI HAS FULFILLED SIX YEARS AS THE HEAD OF THAT COMMITTEE.
AND UNDER THE REPUBLICAN RULES, YOU CAN ONLY SERVE SIX YEARS AND THEN YOU NEED TO MOVE ON.
IT'S DESIGNED TO CREATE A DEEPER BENCH OF LEADERSHIP WITHIN THE PARTY TO GIVE MORE PEOPLE OPPORTUNITIES.
CHAIRMAN GRAVES, THOUGH, PUT IN FOR A WAIVER THIS YEAR AND WAS GRANTED A WAIVER.
IT'S VERY, VERY UNUSUAL THAT YOU GET THAT TYPE OF WAIVER, BUT HE WAS ABLE TO DO SO, AND IT REALLY REFLECTS HIS INCREDIBLE LEADERSHIP ON A BIPARTISAN BASIS, REALLY FOR THAT PARTICULAR COMMITTEE.
SO DEMOCRATIC SIDE O OPERATES A LITTLE BIT DIFFERENTLY.
THEY DO NOT HAVE THE SAME TERM LIMITS IN PLACE.
A LOT OF WHAT DRIVES THE, UM, DEMOCRATIC SENIORITY FOR THESE COMMITTEES IS SERVING TIME IN CONGRESS, WHO'S BEEN THERE THE LONGEST.
BUT MORE AND MORE WE'VE BEEN SEEING A LITTLE BIT OF A SHAKEUP ON THAT.
AND WE SAW MORE OF A SHAKEUP IN THIS PARTICULAR CONGRESS THAN WE HAVE IN YEARS PAST.
AND I REALLY THINK THAT'S A REFLECTION OF THE OUTCOME OF THE NOVEMBER ELECTIONS.
UH, THE DEMOCRATS HAVE SAYING, HAVE BEEN SAYING, WE
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NEED TO SEE MORE LEADERSHIP, WE NEED TO SEE SOME CHANGES HERE AS WELL.AND SO SOMEBODY LIKE, UM, MR. HUFFMAN WHO IS THE RANKING MEMBER OF THE NATURAL RESOURCES COMMITTEE, HE'S OF COURSE FROM NORTHERN CALIFORNIA.
HE ACTUALLY CHALLENGED THE SITTING RANKING MEMBER FOR THAT PARTICULAR POSITION.
AND IT DIDN'T HAVE TO COME DOWN TO A VOTE, BUT WE USUALLY DON'T SEE THAT KIND OF CHALLENGE WITHIN THE DEMOCRAT, UM, RANKS FOR A COMMITTEE LEADERSHIP SPOT.
AND WE SAW IT FOR THREE COMMITTEES THIS YEAR.
SO THAT'S MY REALLY QUICK TUTORIAL.
I HOPE THAT ANSWERED YOUR QUESTION.
ALRIGHT, I'LL, I'LL SLIDE THROUGH THIS PRETTY QUICKLY.
UM, JUST SOME REALLY KEY DATES FOR YOU BECAUSE THIS IS HOW WE VIEW THINGS HERE IN WASHINGTON.
OF COURSE, WE HAD SWEARING IN DAY ON JANUARY 3RD.
IT WAS A PACKED HOUSE UP THERE, UNLIKE THE SWEARING IN THAT CONGRESSMAN GARCIA HAD TWO YEARS AGO WHERE WE COULDN'T ELECT A SPEAKER ON THAT DAY.
AND WE WENT THROUGH FIVE DAYS AND 15 VOTES.
UM, THIS TIME AROUND, THEY WERE ABLE TO GET IT IN JUST THE SECOND VOTE.
UM, SO THAT CLEARED THE WAY, UH, FOR THE HUNDRED 19TH CONGRESS TO BE SWORN IN.
WE SAW INAUGURATION DAY JUST A MONTH AGO.
IT'S BEEN A REALLY LONG MONTH
UM, AND THEN, UM, MOVING FORWARD WITH THE, THE CONGRESSIONAL CALENDAR, THE BIGGEST STATE THAT I'M WATCHING HERE IS MARCH 14TH, BECAUSE THAT'S WHEN THE CONTINUING RESOLUTION THAT'S KEEPING THE GOVERNMENT OPEN AND FUNDED WILL RUN OUT.
CONGRESS PUT THAT DEADLINE IN PLACE IN THE MIDDLE OF DECEMBER, AND WE ARE NO CLOSER TO FINALIZING TOP LINE AGREEMENTS FOR APPROPRIATIONS BILLS NOW THAN WE WERE IN THE MIDDLE OF DECEMBER.
SO THEY REALLY NEED TO GET FOCUSED ON THAT.
WE MAY SEE A, A SHORTER CONTINUING RESOLUTION MOVE FORWARD.
WE MAY SEE A CONTINUING RESOLUTION FOR THE REST OF THE FISCAL YEAR.
WE DON'T KNOW QUITE YET HOW THAT WILL ALL COME TOGETHER, BUT CERTAINLY, AS I TALKED ABOUT EARLIER, WHERE REPUBLICANS REALLY NEED DEMOCRATIC VOTES TO GET SOMETHING OVER THE LINE, THIS IS ONE THAT THEY'RE REALLY GOING TO NEED THOSE DEMOCRATIC VOTES.
SO THAT'S WHAT WE'RE WATCHING QUITE CAREFULLY.
UM, EVERYBODY TUNE IN FOR MARCH 4TH.
THAT'LL BE THE FIRST STATE OF THE UNION FOR PRESIDENT TRUMP AND HIS SECOND TERM.
AND THEN WE ARE EXPECTING SOME TIME IN THE SPRING TO SEE THE PRESIDENT'S BUDGET PROPOSAL.
THAT WILL BE THE FIRST TIME THAT WE SEE ALL OF THE PRIORITIES FOR THIS ADMINISTRATION IN ONE SPOT.
WE'VE OF COURSE, BEEN SEEING PRIORITIES COME OUT THROUGH VARIOUS EXECUTIVE ORDERS AND MEMOS AND THINGS OF THAT NATURE, BUT THEY'VE BEEN COMING IN PIECES, UM, AND THEY'VE BEEN COMING THROUGH EITHER THE WHITE HOUSE SPECIFICALLY OR THROUGH VARIOUS AGENCIES.
SO THIS WILL BE THE FIRST TIME THAT WE WILL SEE THAT ALL TOGETHER.
I THINK WE'RE GONNA SEE A HIGH LEVEL SKINNY BUDGET COME OUT IN APRIL.
A MORE FLESHED OUT BUDGET COME OUT IN MAY.
UM, SO YES, THIS IS THE SLIDE THAT DIANA WAS ALLUDING TO, THAT THINGS HAVE SORT OF CHANGED OUT HERE IN WASHINGTON A LITTLE BIT.
EVERYBODY THAT YOU SEE LISTED ON THE SCREEN HERE HAS NOW BEEN, UM, CONFIRMED BY THE SENATE AND HAS BEEN SWORN INTO THEIR POSITIONS WITHIN THE ADMINISTRATION.
ONE THING I DO WANNA NOTE WITH DOUG BERMAN AT THE DEPARTMENT OF THE INTERIOR, WHEN HE WAS GOVERNOR OF NORTH DAKOTA, HE TALKED A LOT ABOUT WATER AFFORDABILITY.
HE TALKED A LOT ABOUT AGING WATER INFRASTRUCTURE.
HE TALKED A LOT ABOUT THE CHALLENGES OF UPGRADING WATER SYSTEMS WHEN YOU'RE, UM, HAVING TO COMPLY WITH BY AMERICA REGULATIONS.
SO IF THERE'S ANYBODY HERE WHO UNDERSTANDS WATER DYNAMICS, REALLY WITHIN THIS ADMINISTRATION, I WOULD SAY, UM, UM, THE SECRETARY OF THE INTERIOR FALLS INTO THAT PARTICULAR CATEGORY.
WE'RE STILL TRYING TO FLUSH OUT SOME OF THE, UM, POSITIONS WITHIN INTERIOR.
WE DON'T YET KNOW WHO'S GOING TO BE THE COMMISSIONER OF THE BUREAU OF RECLAMATION, WHICH I KNOW IS A VERY, VERY IMPORTANT POSITION FOR YOU.
I THINK THAT'LL BE IN THE COMING WEEKS THAT WE KNOW WHO WILL BE SUPPORTING THESE SECRETARIES IN THOSE POSITIONS.
UM, SO GETTING TO YOUR COMPETITIVE GRANTS, OF COURSE, YOU HAD A REALLY GREAT YEAR LAST YEAR GETTING TWO AWARDS.
ONE FROM THE, UM, BUREAU OF RECLAMATION AND THE ONE FROM F IMSA OVER AT THE DEPARTMENT OF TRANSPORTATION.
THE F IMSA AWARD IS A NEW PROGRAM THAT WAS CREATED BY THE BIPARTISAN INFRASTRUCTURE LAW.
SO THAT'S WHEN WE'LL REALLY BE WATCHING TO SEE IF CONGRESS CONTINUES THAT AS THEY WORK ON BIGGER SURFACE TRANSPORTATION ISSUES.
EVERY GRANT RIGHT NOW IS UNDER REVIEW WITHIN THE ADMINISTRATION.
THAT'S PRETTY TYPICAL, RIGHT? A NEW ADMINISTRATION COMES IN IN THE FIRST 100 DAYS.
THEY'RE GONNA TAKE A LOOK AT EVERYTHING TO MAKE SURE THAT THINGS ALIGN WITH THE PRIORITIES OF THAT ADMINISTRATION.
SO WE'RE HAVING THAT HAPPEN RIGHT NOW.
WHAT WOULD BE UNUSUAL AND WHAT WE'RE KEEPING A REALLY CLOSE EYE ON, IS WHETHER OR NOT THESE NEW PRIORITIES IMPACT AWARDS THAT WERE PREVIOUSLY MADE.
I CAN TELL YOU, EVERYBODY IN YOUR CONGRESSIONAL DELEGATION IS WATCHING THIS VERY, VERY CLOSELY SO THAT THEY CAN HELP OUT WHERE THEY NEED TO.
BUT THE OVERALL REVIEW OF REALIGNMENT OF PRIORITIES, REVIEW OF PROGRAMS, REVIEW OF DECISIONS, THAT IS TYPICAL FOR A TRANSITION.
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UM, SO MOVING FORWARD WITH YOUR PRIORITIES, THEY PRETTY MUCH REMAIN THE SAME FROM YEAR TO YEAR.YOU'RE CONSISTENT IN THAT WAY.
WE WILL, OF COURSE, BE LOOKING FOR NEW FUNDING OPPORTUNITIES FOR YOU IN THE COMPETITIVE GRANT SPACE, AS WELL AS THE ANNUAL APPROPRIATION CYCLE.
UH, WE ARE ALSO HEARING A LOT IN WASHINGTON, DC ABOUT WATER AFFORDABILITY, ABOUT PFAS, ABOUT PASSIVE RECEIVERS AND LIABILITY PROTECTIONS THERE.
THOSE TEND TO BE SOME OF THE BIGGER PRIORITIES FOR WATER ORGANIZATIONS WITH A, UH, EITHER A STATE FOCUS OR A NATIONAL FOCUS, UH, IN WASHINGTON DC THERE WAS A BRIEFING THAT THEY DID FOR SENATE STAFF ON TUESDAY THAT I ATTENDED, AND THOSE WERE THE BIG THINGS THAT WERE COMING UP, IS HOW DO WE KEEP WATER AFFORDABLE FOR OUR CONSTITUENTS? SO LAST BUT NOT LEAST, THESE ARE SOME OF THE THINGS THAT WE'LL BE LOOKING AT TO UTILIZE TO HELP ADVANCE YOUR PRIORITIES.
WE ALWAYS COORDINATE WITH DIANA ON TRIPS TO WASHINGTON DC WE LOOK FORWARD TO SEEING YOU THERE.
AND I'LL WRAP IT UP AT THAT 'CAUSE I'M SURE I'M OVER 10 MINUTES.
I ESPECIALLY LOVED HEARING ABOUT WHAT'S TYPICAL VERSUS UNTYPICAL, THAT DIFFERENCE.
UM, ARE THERE ANY PUBLIC COMMENTS? ANY COMMISSIONER COMMENT? CAN YOU EXPRESS OH, YEAH.
CAN YOU EXPRESS A PERSONAL OPINION AS TO THE GRANTS THAT HAVE, THAT WE FELT THAT WE'VE ACHIEVED THE POSSIBILITY THAT THEY MAY BE WITHDRAWN? I DON'T THINK THAT THE TYPES OF FUNDING THAT YOU SOUGHT AND SECURED ARE THE TYPES OF FUNDING THAT THIS ADMINISTRATION IS TARGETING.
I THINK THEY'RE GONNA BE A LITTLE BIT MORE FOCUSED ON THINGS THAT DON'T FIT WITH THE PRESIDENT'S AGENDA.
SO RIGHT NOW, THEY'RE REALLY LOOKING AT THINGS LIKE EV CHARGERS AND CLEAN, LIKE WHAT EV CHARGERS, ELECTRIC VEHICLES, THOSE TYPES OF THINGS.
I DON'T THINK ANYTHING IS A HUNDRED PERCENT SAFE.
I MEAN, WE ALWAYS HAVE TO BE VIGILANT TO USE DIANA'S WORD, BUT THE PROGRAMS THAT YOU GOT FUNDED ARE NOT THE PROGRAMS THAT ARE BEING TARGETED BY THIS ADMINISTRATION.
I CAN ADD TO THAT THE NEWEST AND, UH, PROBABLY LARGEST GRANT THAT WE'VE RECEIVED IS THE $6 MILLION GRANT FROM FEMSA.
THAT IS THE ONE THAT WE ARE KEEPING, UM, A CLOSER EYE ON BECAUSE IT IS IN THE EARLIEST STAGES OF FORMALIZING WITH THE DOT.
HOWEVER, AS, UM, JULIE DID MENTION, WE HAVE THREE MEMBERS OF OUR FOUR MEMBER DELEGATION ON COMMITTEES WITH OVERSIGHT OVER OVER DOT.
AND THAT FEMSA GRANT IS A PIPELINE SAFETY GRANT.
UM, AND, AND, AND QUITE HONESTLY, PIPELINE SAFETY FOR A FOSSIL FUEL.
SO AS, AS JULIE MENTIONED, UM, THE CLIMATE CHANGE INITIATIVES ARE THE ONES THAT, UM, MIGHT BE UNDER GREATER SCRUTINY.
I, I THINK THAT THIS ADMINISTRATION, UM, IS, IS NOT MOST LIKELY TO CHALLENGE, UM, INFRASTRUCTURE THAT IS SUPPORTING OUR NATION'S ECONOMY.
AND CALIFORNIA DOES IMPORT 90% OF OUR NATURAL GAS.
SO, UM, THOSE SYSTEMS ARE IMPORTANT, I BELIEVE, FOR, FOR THE INDUSTRY AND FOR OUR, OUR MEMBERS AND FOR US TO MAINTAIN.
THANK YOU FOR THAT REPORT AND FOR THAT TOO, DIANE.
UM, THE FARM BILL, CAN YOU TELL US ANYTHING ABOUT THAT? UM, I THINK WE ALL WISH THEY WOULD'VE GOTTEN IT DONE LAST CONGRESS.
UM, THERE ARE A LOT OF LEADERS ON THAT COMMITTEE THAT ARE NEW.
CERTAINLY, UH, SENATOR STABENOW RETIRED.
SO WE'VE GOT A NEW RANKING MEMBER ON THE, THE SENATE SIDE.
AND THEN ON THE HOUSE SIDE, WE HAVE ALSO A NEW RANKING MEMBER WHO IS CONSIDERING RUNNING FOR THE SENATE, UM, IN AN OPEN SEAT AS WELL.
SO THERE'S SOME, SOMETIMES WHEN YOU HAVE THOSE COMMITTEE CHANGES, UH, WE'LL SEE SOME CHANGES, UH, TO HOW THAT MOVES FORWARD.
BUT IT'S A VERY POWERFUL LOBBY BEHIND THE FARM BILL LOOKING TO GET SOMETHING DONE.
THIS IS THE TYPE OF BILL THAT COULD REALLY DELIVER A WIN FOR BOTH SIDES OF THE AISLE.
AND SO I THINK THAT IF ANYTHING CAN GET THROUGH IN THIS CONGRESS IN A BIPARTISAN WAY, IT'S SOMETHING LIKE THE FARM BILL.
IT'S SOMETHING LIKE THE WATER RESOURCES DEVELOPMENT ACT.
THOSE ARE THE THINGS THAT I THINK WILL BE MOVING FORWARD.
UM, THINGS THAT DON'T HAVE ALIGNMENT WITH BIPARTISAN CAUSES, THINGS THAT DON'T HAVE DIRECT COMMUNITY IMPACT, THOSE ARE GOING TO BE HARDER TO DO.
BUT THE, THE FARM BILL HAS A DIRECT COMMUNITY IMPACT FOR SURE.
UM, DO I HAVE A MOTION TO RECEIVE AND FILE? THANK YOU.
SECOND, WE HAVE A FOR A MOTION AND A SECOND.
[00:25:01]
AYE.[3. 25-54392 Recommendation to authorize the General Manager to execute a Memorandum of Understanding with WaterNow Alliance to provide assistance in the development of an Assembly Bill 1572 Program to assist Commercial, Industrial, and Institutional customers in removing their Non-Functional Turf. Suggested Action: Approve recommendation. ]
IS TO AUTHORIZE THE GENERAL MANAGER TO EXECUTE A MEMORANDUM OF UNDERSTANDING WITH WATER NOW ALLIANCE TO PROVIDE ASSISTANCE IN THE DEVELOPMENT OF ASSEMBLY BILL 1572 PROGRAM TO ASSIST COMMERCIAL, INDUSTRIAL AND INSTITUTIONAL CUSTOMERS IN REMOVING THEIR NON-FUNCTIONAL TURF.CAN YOU HEAR ME PROPERLY? PERFECT.
MY NAME IS DANNY MORIA, AND TODAY I WILL BE DISCUSSING THE OPPORTUNITY TO COLLABORATE WITH WATER NOW ALLIANCE TO ENHANCE OUR WATER CONSERVATION AND OUR POLICY IMPLEMENTATION EFFORTS AS THEY RELATE SPECIFICALLY TO ASSEMBLY BILL 1572.
SOME OF YOU MAY RECALL LAST YEAR, I BRIEFLY INTRODUCED THIS BILL TO THE BOARD LAST YEAR, UH, DURING MY PRESENTATION REGARDING OUR TEAM'S COLLABORATION WITH THE CALIFORNIA CLIMATE ACTION CORPS.
UH, TODAY I WILL PROVIDE A MORE IN-DEPTH OVERVIEW OF WHAT THIS BILL IS AND OUTLINE STAFF, UM, OUTLINE STEPS STAFF WOULD LIKE TO TAKE TO ENSURE A SUCCESSFUL IMPLEMENTATION ASSEMBLY.
BILL 1572 PASSED BY THE CALIFORNIA STATE LEGISLATURE IN OCTOBER, 2023, PERMANENTLY BANS THE IRRIGATION OF NON-FUNCTIONAL TURF WITH AL WATER ON ALL CII.
SO COMMERCIAL INDUSTRIAL INSTITUTIONAL PROPERTIES ACROSS THE STATE OF CALIFORNIA.
AND THIS INCLUDES SCHOOLS, HOMEOWNERS ASSOCIATIONS, AND INDUSTRIAL SITES.
AS THE LEGISLATION IS WRITTEN, NON-FUNCTIONAL TURF IS CATEGORIZED AS GRASS AREAS WITHIN CII PROPERTIES, COMMERCIAL INDUSTRIAL INSTITUTIONAL PROPERTIES THAT IS IRRIGATED BY PORTABLE WATER, BUT THE, IT DOESN'T SERVE A PUBLIC USE FUNCTION EITHER VIA PUBLIC RECREATION OR THROUGH COMMUNITY GATHERING SPACE FUNCTIONS.
IN CONTRAST, FUNCTIONAL TURF IS CATEGORIZED AS GRASS AREAS WITHIN CII PROPERTIES THAT ACTUALLY SERVES A PUBLIC USE FUNCTION.
SO EITHER COMMUNITIES ARE GATHERING IN THIS SPACE, OR EVEN IF IT'S JUST ONCE A YEAR, IT IS BEING USED FOR PUBLIC ENGAGEMENTS OR RECREATION.
AN EXAMPLE COULD BE, LET'S SAY THERE'S A CITY HALL SURROUNDED BY A LOT OF GRASS AND ONCE A YEAR, EXECUTIVE MANAGEMENT LIKES TO INTERACT WITH THEIR STAKEHOLDERS IN ONE OF THE PIECES OF THE GRASS.
AND THAT GRASS WOULD BE CONSIDERED FUNCTIONAL TURF, EVEN THOUGH IT'S JUST BEING USED FOR ONE HOUR, ONE DAY OUT OF THE YEAR.
AND SO I'D LIKE TO REVIEW SOME EXAMPLES OF WHAT NFT NON-FUNCTIONAL TURF LOOKS LIKE ON COMMON CII CATEGORIES.
SO THIS SLIDE, WE SHOW THREE EXAMPLES OF PUBLIC PROPERTIES.
SO THESE ARE PROPERTIES THAT ARE MANAGED BY CITIES.
THE FIRST IMAGE IS THE ENTRY POINT TO SIMI VALLEY.
WE SEE THE WELCOME SIGN IS SURROUNDED BY A SEA OF GRASS.
EXECUTIVE MANAGEMENT SINCE HAS REMOVED THIS GRASS AND INSTALLED A BEAUTIFUL CLIMATE RESILIENT GARDEN.
THE SECOND IMAGE IS A FIREHOUSE FIRE STATION SURROUNDED BY A LOT OF GRASS NOT BEING UTILIZED BY THE PUBLIC OR THE FIREFIGHTERS.
AND BELOW WE HAVE A STRIP OF A MEDIUM PARKWAY THAT MOST URBAN CITIES, UM, HAVE THAT'S IRRIGATED BY PORTABLE WATER.
ALL OF THESE ARE GREAT EXAMPLES OF NON-FUNCTIONAL TURF ON PUBLIC PROPERTIES.
HERE IS A SLIDE OF COMMERCIAL PROPERTY NFT EXAMPLES.
THE FIRST IMAGE IS JUST A WAREHOUSE SURROUNDED BY A LOT OF GRASS, MOST INDUSTRIAL WAREHOUSES.
UM, THE PRIMARY LANDSCAPE IS GRASS, AND IT'S IRRIGATED BY PORTABLE WATER, A LOT OF WATER WASTE.
UH, THE SECOND IS A GAS STATION WITH A HORRIBLE IRRIGATION SYSTEM, AND BELOW IS A STRIP MALL SURROUNDED BY STRIPS OF GRASS AS WELL.
NONE OF THESE AREAS ARE BEING USED FOR PUBLIC USE FOR ANY PARTICULAR REASON, ALL CONSIDERED NON-FUNCTIONAL TURF.
SO THESE IMAGES SHOWCASE, UH, COMMON AREAS WITHIN HOAS.
SO ALL OF THESE AREAS RIGHT HERE ARE CONSIDERED NON-FUNCTIONAL TURF.
AND PER THE LEGISLATION, A COMMON AREA REFERS TO PORTIONS OF THE PROPERTY NOT ASSIGNED FOR EXCLUSIVE USE BY INDIVIDUAL RESIDENTS, BUT THEY'RE STILL BEING MAINTAINED BY THE ASSOCIATION AND THE BILL SETS FORTH A PHASE COMPLIANCE TIMELINE.
BUT BEFORE I DIVE INTO THESE DATES, I DO WANT TO, UM, MENTION THE PRIMARY PATHWAY TO COMPLIANCE THAT OUR TEAM, UH, IS, IS ENCOURAGING THE CITY TO MOVE FORWARD WITH, IS, UH, THE PROCESS OF REMOVING THIS NON-FUNCTIONAL TURF AND INSTALLING WATERWISE GARDENS INSTEAD, UTILIZING THE PROGRAMS WE CURRENTLY HAVE IN PLACE, LIKE THE COMMERCIAL LAUNCH TO GARDEN PROGRAM AND THE NATIVE PLANT PARKWAY PROGRAM.
SO THE FIRST GROUP OF FOLKS THAT MUST BE COMPLIANT WITH THIS BILL ARE PUBLIC PROPERTIES
[00:30:01]
BY JANUARY, 2027.BY JANUARY, 2028, COMMERCIAL PROPERTIES, 29 HOMEOWNERS ASSOCIATIONS.
AND BY JANUARY, 2031 OR WEDNESDAY FUNDING IS AVAILABLE ALL CII PROPERTIES AND DAX.
SO DISADVANTAGED COMMUNITIES CATEGORIZED BY THE STATE MUST BE COMPLIANT WITH THIS BILL.
BUT I DO WANNA EMPHASIZE THAT THIS DATE, THIS JANUARY, 2031 DATE IS STRICTLY CONTINGENT ON STATE FUNDING AVAILABILITY.
UH, BY JUNE 30TH, 2030, ANY PROPERTIES THAT ARE 5,000 SQUARE FEET AND ABOVE MUST SELF-CERTIFY THEIR COMPLIANCE WITH THE STATE.
AND, UH, NON-COMPLIANCE MAY RESULT IN CIVIL LIABILITY AND PENALTIES THAT CAN BE IMPOSED BY EITHER THE STATE, UH, THROUGH THE RE THE WATER RESOURCES CONTROL BOARD, OR BY LOCAL URBAN WATER SUPPLIERS.
SO THE LONG BEACH UTILITIES DEPARTMENT IS BEING TASKED WITH FOSTERING WIDESPREAD AWARENESS, DEVELOPING PROGRAMS TO, UH, FACILITATE COMPLIANCE.
BUT IN THE VERY NEAR FUTURE, WE WILL ALSO BE TASKED WITH ENFORCING THIS BILL AS WELL.
SO THE BILL PASSED IN OCTOBER, 2023.
WHAT HAVE WE DONE SO FAR IN THE PAST 12 MONTHS? IN THE PAST 12 MONTHS, WE HAVE CONDUCTED OVER 47 IN-PERSON AND VIRTUAL ENGAGEMENTS WITH KEY STAKEHOLDERS IN THE COMMUNITY, INCLUDING, UH, BUSINESS COALITIONS, NEIGHBORHOOD ASSOCIATIONS, SISTER DEPARTMENTS.
AND THESE PRESENTATIONS SERVE TO FOSTER WIDESPREAD AWARENESS.
SO WE'RE INFORMING FOLKS WHAT THIS BILL IS, HOW IT IMPACTS THEM, HOW IT IMPACTS THE CITY, THE STATE, THE WONDERFUL POTENTIAL IT HAS TO COMPLETELY TRANSFORM THE CALIFORNIA LANDSCAPE.
UM, WE'RE TALKING ABOUT OR INFORMING THEM ABOUT THE PROGRAMS WE CURRENTLY HAVE IN PLACE, LIKE THE COMMERCIAL LAUNCH TO GARDEN PROGRAM, THE NATIVE PLANT PARKWAY PROGRAM.
BUT MOST IMPORTANTLY, WITHIN THESE PUBLIC ENGAGEMENTS, WE ARE SOLICITING FEEDBACK FROM OUR COMMUNITY.
WE'RE ASKING THEM, UM, WHAT ELSE WOULD THEY LIKE TO SEE US CREATE BEYOND FINANCIAL MEANS TO FACILITATE THEIR COMPLIANCE WITH AB 1572? BECAUSE WE BELIEVE THAT STAKEHOLDER FEEDBACK IS SO IMPORTANT, AND BY HARNESSING THE COLLECTIVE INSIGHT AND WISDOM OF THOSE WE SERVED, WE THINK THAT WE ARE POISED TO SCULPT INITIATIVES AND PROGRAMS AND RESOURCES THAT TRULY RESONATE WITH THE NEEDS OF OUR COMMUNITY.
FURTHER, WE ARE CONDUCTING, UH, HOA INSPECTIONS.
SO WE HEAD OVER TO HOAS IN PERSON, WE WALK AROUND THE ENTIRE HOA WITH THE BOARD, AND WE HELP THEM DETERMINE WHAT'S FUNCTIONAL AND NON-FUNCTIONAL.
WE THEN FOLLOW UP WITH THE COMPLIANCE PATHWAY PLAN.
USUALLY IT INVOLVES, UM, APPLYING TO THE LAWN TO GARDEN PROGRAM, ATTENDING MORE BOARD ASSOCIATION, UH, MEETINGS TO PRESENT TO THEIR STAKEHOLDERS TO INFORM THEM WHAT THE BILL IS TO GET THEIR BUY-IN.
UM, WE'RE ALSO COLLECTING AND ANALYZING A LOT OF FEEDBACK OR A LOT OF DATA THROUGH EVALUATION POLLS.
SO AFTER OUR PRESENTATIONS, WE PROVIDE EVERYBODY WITH AN EVALUATION POLL, AND WE ASK THEM SIMPLE QUESTIONS, ONE OF THEM BEING, OKAY, SO NOW THAT YOU'VE SAT IN ON A PRESENTATION ABOUT THIS BILL, DO YOU HAVE A CLEAR UNDERSTANDING OF WHAT THE BILL IS? WE ALSO ASK THEM, WHAT ELSE WOULD YOU LIKE TO SEE US CREATE ON YOUR BEHALF? I HAVE A QUICK QUESTION.
ON YOUR HOAS, UM, DO, DO THEY CONTACT US OR DO YOU GO AND INSPECT THEM JUST BASED ON A LIST OF HOAS IN OUR CITY? WE CONTACT THEM VIA EMAIL OR WE GIVE 'EM A CALL, KIND OF JUST LIKE GORILLA MARKETING, AND WE LET THEM KNOW, HEY, THIS BUILD EXISTS.
WE HAVE GREAT PROGRAMS FOR YOU.
WOULD YOU BE INTERESTED IN A PRESENTATION? AND IF THEY'RE INTERESTED IN A PRESENTATION, USUALLY WE FOLLOW UP DIRECTLY AFTER WITH AN ONSITE INSPECTION.
AND THAT'S THE SAME WITH LIKE THE WRIGLEY NEIGHBORHOOD AND LIONS CLUB.
YOU APPROACH THEM OR THEY MUST HAVE APPROACHED YOU.
WE HAVE A LARGE LIST OF COALITIONS AND NEIGHBORHOOD ASSOCIATIONS THAT MYSELF AND ONE OF OUR FELLOWS ARE ACTIVELY REACHING OUT TO.
BUT, UM, THERE'S A LOT OF WORD OF MOUTH HAPPENING NOW.
SO NOW LATELY, NEIGHBORHOOD ASSOCIATIONS AND COALITIONS ARE CONTACTING US TO CONDUCT A, A PRESENTATION FOR THEIR STAKEHOLDERS.
AND SO THIS IS MY FAVORITE PART ABOUT THIS BILL.
UM, BECAUSE, YOU KNOW, IMPLEMENTING A BILL IS SO CHALLENGING, ESPECIALLY A BILL OF THIS SCALE.
THERE'S SO MANY STEPS THAT NEED TO BE TAKEN, AND COLLABORATION IS KEY.
WITHOUT COLLABORATION, WE CAN'T IMPLEMENT THIS BILL PROPERLY.
SO WHAT WE'VE DONE IS WE'VE, UH, PARTNERED UP, UM, WITH THE SURF RIDER FOUNDATION IN THE MARINA BUREAU.
WE'VE ENTERED INTO MULTI-YEAR PARTNERSHIPS TO ASSIST THE MARINA BUREAU WITH CONVERTING ALL OF THEIR NON-FUNCTIONAL TURF WITH BEAUTIFUL CLIMATE RESILIENT GARDENS THROUGHOUT LAWRENCE GARDEN PROGRAM.
AND OUR GREAT PARTNERSHIP WITH THE SURF RIDER FOUNDATION.
SO COMMUNITY MEMBERS IN THE CITY OF LONG BEACH AND SURROUNDING CITIES, THEY COME AND THEY ACTUALLY ASSIST US WITH INSTALLING ALL OF THE GARDENS FOR THE MARINA BUREAU.
[00:35:01]
THESE LAUNCH OF GARDEN PROJECTS ARE NOT JUST, YOU KNOW, GARDEN INSTALLATIONS, BUT THEY'RE TURNING INTO REALLY WONDERFUL COMMUNITY BUILDING EVENTS.AND IT'S, IT'S BEEN SO WONDERFUL TO BE PART OF THAT.
SO SEE, THESE ARE A COUPLE OF, UH, PROJECTS THAT WE RECENTLY COMPLETED.
THIS IS THE HARBOR MASTER'S OFFICE.
THIS, UM, ROUNDABOUT WAS PREVIOUSLY NON-FUNCTIONAL TURF.
VERY BORING IF YOU ASK ME NOW.
IT'S A BEAUTIFUL CLIMATE RESILIENT GARDEN MADE UP OF CALIFORNIA NATIVE PLANTS.
AND WE ALREADY HAVE POLLINATORS VISITING THIS SITE.
THIS IS A VERY SPECIAL PROJECT.
IT'S OUR FIRST AB 1572 PROJECT.
IT'S VERY SMALL, BUT VERY IMPACTFUL BECAUSE THIS AREA, I DON'T KNOW IF ANY OF YOU HAVE EVER VISITED THIS SPACE.
WHEN IT'S RAINING, IT'S PRONE TO FLOODING AND NOBODY CAN PASS BY IN THEIR BIKES OR, OR JUST WALK.
AND IT'S A, IT'S A SAFETY HAZARD BECAUSE IT'S PRONE TO, IT'S PRONE TO FLOODING ALL ALONG THE SIDEWALK.
SO IN ADDITION TO CONVERTING THIS SPACE TO A BEAUTIFUL CATALINA ISLAND PLANT PALETTE GARDEN, WE ALSO INSTALLED A GUTTER SYSTEM ON THE ROOF.
AND WE INSTALLED VARIOUS BIO RETENTION FEATURES WITHIN THE SPACE.
SO WHEN IT RAINS, THE RAIN IS NOT FALLING OFF INTO THE SIDEWALK AND FLOODING THE AREA.
NOW THE RAIN IS BEING RETAINED INTO THE GARDEN SITE.
SO IT LOOKS MORE BEAUTIFUL AND IT'S SAFER.
AND THIS, I'M SUPER STOKED ABOUT.
WELL, WE JUST FINISHED THE FIRST PANEL RIGHT ON THE FAR END, UH, ON SATURDAY.
BUT THIS IS THE ALAMITOS BAY HOME OF THE OLYMPIC TRIALS, WHICH EQUATES TO A LOT OF FOOT TRAFFIC, WHICH EQUATES TO, EQUATES TO, UH, THE POTENTIAL TO INSPIRE THROUGH EXPERIENCE.
WE ARE CONVERTING ALL OF THE GRASS PANELS HERE IN ALAMITOS BAY TO BEAUTIFUL CLIMATE RESILIENT GARDENS THROUGH OUR PARTNERSHIP WITH THE PUBLIC WORKS DEPARTMENT, SURF FIGHTER FOUNDATION, AND THE MARINA BUREAU.
I'M REALLY EXCITED ABOUT THIS ONE.
AND WE ALSO HAVE OTHER AB 1572 WATER CHAMPIONS THROUGHOUT THE CITY.
WE HAVE VARIOUS HOAS LIKE THE BRIDGEPORT HOMEOWNERS ASSOCIATION.
WE HAVE SEA AISLE HOMEOWNERS ASSOCIATION THAT ARE DOING THEIR PART.
AND THIS IS REALLY WONDERFUL BECAUSE IN THE ENTIRE HISTORY OF THE LAWN TO GARDEN PROGRAM, WE'VE NEVER TAPPED INTO THE HOA SPACE.
AND NOW WE HAVE OVER A DOZEN HOA APPLICATIONS IN THE LAWN TO GARDEN PROGRAM.
AND WE HAVE SEVEN CURRENTLY REMOVING THEIR GRASS AND INSTALLING THE WATERWISE GARDENS.
WE ALSO HAVE TWO SCHOOLS THAT ARE PARTICIPATING IN THE LON GARDEN PROGRAM.
THE LONG BEACH DAY NURSERY IS CURRENTLY IN THE PROCESS OF CONVERTING ALL OF THEIR NON-FUNCTIONAL TURF TO BEAUTIFUL CLIMATE RESILIENT GARDENS.
AND THEY'RE ALSO GOING TO BE INSTALLING SIGNAGE.
SO THIS SIGNAGE IS GONNA BE, UM, INTEGRATED INTO THE CURRICULUM FOR THE STUDENTS.
SO NOW THE STUDENTS CAN LEARN ABOUT THE WATER CYCLE, THE POWER OF CALIFORNIA NATIVE PLANTS, AND SOIL CHEMISTRY, AND ALL THAT FUN STUFF.
BUT THIS IS REALLY THE KEY REASON WHY I'M PRESENTING TO YOU ALL TODAY.
THE KEY REASON I'M PRESENTING IS TO SEEK AUTHORIZATION FOR OUR GENERAL MANAGER TO EXECUTE AN MOU WITH WATER NOW ALLIANCE WATER.
NOW ALLIANCE IS A NETWORK OF LOCAL WATER LEADERS DEDICATED TO ADVANCING SUSTAINABLE, AFFORDABLE, AND CLIMATE RESILIENT WATER STRATEGIES THROUGH ENGAGEMENTS, ADVOCACY, AND DEMONSTRATION.
ONE OF THEIR MOST IMPACTFUL INITIATIVES IS THEIR PROJECT ACCELERATOR PROGRAM, WHICH SUPPORTS LOCAL AGENCIES WITH TECHNICAL ASSISTANCE TO IMPLEMENT WATER MANAGEMENT SOLUTIONS.
THE PROJECT ACCELERATOR PROGRAM OFFERS UP TO 250 HOURS OF PRO BONO ASSISTANCE OVER A SIX TO 12 MONTH PERIOD, INCLUDING PROGRAM DEVELOPMENT AND MANAGEMENT POLICY AND LEGAL ANALYSIS, STAKEHOLDER OUTREACH, COMMUNICATION STRATEGY, DATA ANALYSIS, AND SUSTAINABILITY EXPERTISE.
SELECTED PROJECTS UNDERGO A SUPER COMPETITIVE APPLICATION PROCESS, AND WE WERE FORTUNATE TO BE CHOSEN IN THE MOST APPLICA IN THE MOST RECENT APPLICATION CYCLE.
OUR APPLICATION, UH, FOCUSED ON AB 1572 POLICY IMPLEMENTATION.
SO OUR PROJECT'S KEY ACTIVITIES WILL INCLUDE REVIEWING AND DEVELOPING ORDINANCE LANGUAGE, SUPPORTING THE CREATION OF A RESOURCE PORTFOLIO FOR CII CUSTOMERS DEVELOPING A STRATEGIC PLAN FOR COMMUNITY OUTREACH AND ORGANIZING STAKEHOLDER ROUND TABLES AND PRESENTATIONS.
THESE EFFORTS WILL BE DESIGNED TO ENHANCE UNDERSTANDING OF AB 1572, FACILITATE THE TRANSITION FROM TRADITIONAL GRASS TO CLIMATE RESILIENT GARDENS, AND TO STREAMLINE THE CERTIFICATION PROCESS FOR COMPLIANCE.
IN CONCLUSION, STAFF RECOMMENDS TO AUTHORIZE A GENERAL MANAGER TO EXECUTE A MEMORANDUM OF UNDERSTANDING WITH WATER NOW ALLIANCE TO PROVIDE ASSISTANCE IN THE DEVELOPMENT OF AN ASSEMBLY BILL 1572 PROGRAM TO ASSIST COMMERCIAL, INDUSTRIAL
[00:40:01]
AND INSTITUTIONAL CUSTOMERS IN REMOVING THEIR NON-FUNCTIONAL TURF.THAT CONCLUDES MY PRESENTATION.
I'M HAPPY TO ANSWER ANY QUESTIONS YOU HAVE.
UM, ARE THERE ANY PUBLIC COMMENTS? ANY COMMISSIONER COMMENT? COMMISSIONER SCOTT? SO, EXCUSE ME, IT'S CONTAGIOUS.
UM, SO I'M ASSUMING, SO THIS IS POTABLE WATER, NOT, UH, RECYCLED WATER.
RIGHT? WHAT, AND IF YOU DON'T KNOW OFF THE TOP OF YOUR HEAD, THAT'S FINE.
UM, WHAT PORTION OF OUR CII, UH, IN WITHIN THE CITY OF LONG BEACH HAS THE ABILITY TO, TO RECEIVE RECYCLED WATER? AN EXCELLENT QUESTION.
I BELIEVE THERE'S MUCH BETTER FOLKS IN THE ROOM WHO CAN HELP ME ANSWER THAT QUESTION.
DEAN, DO YOU HAVE THE ANSWER? SO THERE'S, THERE'S A PRETTY SIZABLE AMOUNT OF PARK SPACE.
SO CITI IS ONE OF THE LARGEST CONSUMERS THAT RECYCLE WATER, AND WE ARE RAPIDLY REACHING THE LIMITS OF OUR RECYCLED WATER SUPPLY.
SO WE DON'T REALLY HAVE AN ABILITY TO USE AS A COUNTER VENING STRATEGY TO INSTEAD SWITCH TO RECYCLE WATER, UM, BECAUSE WE'RE SIMPLY REACHING THE LIMITS OF IT.
IT'S IMPORTANT TO NOTE, AS A RESULT OF CLIMATE CHANGE AND THE EMPHASIS ON WATER CONSERVATION PRACTICES THROUGHOUT THE STATE, THAT IS LED TO A REDUCTION OF INDOOR WATER USAGE, WHICH IS THE SOURCE OF YOUR RECYCLED WATER.
SANITATION HAS REPORTED HISTORICALLY OVER THE PAST, UH, DECADE OR SO, IT HAS SUFFERED A 40% DROP IN ITS, UH, SEWAGE INFLOWS, WHICH IS THE SOURCE OF RECYCLED WATER.
I THINK THAT'S A GREAT QUESTION.
THE, THE OTHER PERSPECTIVE I'D OFFER IS EVEN IF IT'S IRRIGATED WITH POT, UH, RECYCLED WATER, WE'D STILL WANT TO MAKE THE RECYCLED WATER LANDSCAPE MORE EFFICIENT.
UM, SO THAT'S STILL THE APPROACH.
AND SO, UM, OUR TEAM IS TAKING THE APPROACH OF, REGARDLESS OF IF IT'S, UH, HOA RE ON A RECYCLED WATER OR NOT, WE STILL SUPPORT THEIR APPLICATION TO, UH, CONVERT THEIR TURF.
I, I GREATLY APPRECIATE THE EFFORTS YOU'VE BEEN GIVING TO PARTNERSHIPS.
'CAUSE I'VE OBVIOUSLY, THAT CREATES A LOT OF STRENGTH IN THIS PROGRAM.
UH, MY QUESTION IS ABOUT THE, WHEN AND YOU TALK ABOUT WATER NOW ALLIANCE, YOU, THERE'S A NETWORK OF LOCAL LEADERS.
ARE WE TALKING LONG BEACH LEADERS OR ARE WE TALKING REGIONALLY? WE'RE TALKING NATIONALLY.
IT'S NOT, IT, DOES IT COME DOWN TO LONG BEACH AT ALL? OR? WE SURF RIDERS AND ALL OF THAT'S WHAT YOU'RE TALKING ABOUT WHEN YOU TALK ABOUT LOCAL LEADERS AT THIS LOCAL LEVEL.
SO FOR THE, FOR WATER NOW ALLIANCE, THEY'RE MADE UP OF VARIOUS AGENCIES, UM, AND, AND LOCAL WATER LEADERS AND NGOS.
SO THEY WORK WITH NGOS, CBOS, WATER AGENCIES, UM, ALL AROUND THE UNITED STATES.
AND SO THEY SELECT THEIR PROJECTS VERY CAREFULLY.
FOR EXAMPLE, THEY RECENTLY DID A PROJECT IN COLORADO WHERE THEY ASSISTED THEM IN DEVELOPING THEIR OWN VERSION OF THE LAWN TO GARDEN PROGRAM.
UM, THEY ASSISTED, UH, THE CITY OF NEW ORLEANS WITH DEVELOPING, UM, I'M NOT AN ENGINEER, BUT A, A RECYCLED WATER INFRASTRUCTURE SYSTEM, UM, CONSISTING OF, OF BIO RETENTION FEATURES THROUGHOUT THE CITY.
SO IT RANGES THE TYPE OF PROJECTS THAT THEY SELECT, BUT THEY'RE ALL VERY MEANINGFUL.
AND THE INTENTION IS TO SELECT PROJECTS THAT THEY CAN ACTUALLY SCALE AND CAN BE CONSIDERED, UM, EXAMPLES OR, UM, UH, EXAMPLES FOR OTHER CITIES WHO ARE ENTERTAINING THESE PROGRAMS OR INITIATIVES TO IMPLEMENT ON THEIR OWN.
KIND OF LIKE NOT HAVING TO REINVENT THE WHEEL IF SOMEBODY ELSE HAS ALREADY DONE IT.
SO IT'S, IT'S LIKE FOOD AND WATER WATCH AND ALL THOSE ARE BIG.
AND THEN, UM, YOU ALSO SAID IT SUPPORTS ITS MEMBERS THROUGH THREE KEY INITIATIVES.
ARE THERE LOCAL MEMBERS WHO, WHO WHO DO YOU WORK WITH AT THIS LOCAL LEVEL? OR IS IT MORE AT THE REG AT THE NATIONAL LEVEL? SO, LOCALLY, OUR, UM, ADVISORS WOULD BE THE DIRECTOR OF POLICY WHO IS LOCAL TO SACRAMENTO.
UH, THEY DO HAVE ONE STAFF MEMBER LOCATED IN LOS ANGELES THAT ASSISTS WITH LEGAL ANALYSIS AND COMMUNITY OUTREACH.
AND THE REST OF THE, THE FOLKS WHO ARE GOING TO BE ASSISTING US WITH THIS PROJECT, THEY'RE REMOTE.
SO THEY ARE IN DENVER, UH, PHILADELPHIA AND NEW YORK.
SEEING NO OTHER COMMISSIONER COMMENT.
UH, DO I HAVE A MOTION TO APPROVE? MOTION TO APPROVE.
[4. 25-54393 Recommendation to adopt Resolution UT-1531, A Resolution of the Board of Utilities Commissioners Adopting the Amended and Restated Water and Sewer Fund Annual Budget for Long Beach Public Utilities Department for Fiscal Year 2023-2024 and authorize staff to transmit the Resolution and the Budget to the City Manager, Mayor and City Council. Suggested Action: Approve recommendation. ]
IS TO ADOPT RESOLUTION UT 1531, A RESOLUTION OF THE BOARD OF UTILITIES COMMISSIONERS ADOPTING, UH, THE AMENDED AND RESTATED WATER AND SEWER FUND ANNUAL BUDGET FOR LONG BEACH PUBLIC UTILITIES[00:45:01]
DEPARTMENT FOR FISCAL YEAR 2023 TO 2024.AND TO AUTHORIZE STAFF TO TRANSMIT THE RESOLUTION AND THE BUDGET.
TO THE CITY MANAGER, MAYOR, AND CITY COUNCIL, I CALL ON STEPHANIE KLA.
I WILL BE HANDING THIS OFF TO OUR MANAGER OF BUDGET AND RATES, BUT BEFORE I DO, SO, I WANTED TO EXPLAIN A LITTLE BIT OF THE BACKGROUND OF WHY WE'RE BRINGING THIS TO YOU TODAY.
UM, I KNOW WE'RE RIGHT AROUND THE CORNER FOR OUR FY 26 BUDGET SEASON AND PLANNING.
UM, AND IT, IT'S BEEN A WHILE SINCE WE'VE COME TO YOU, UH, MAYBE AROUND MAY OR JUNE OF APRIL WITH OUR BUDGET WORKSHOPS WHEN YOU, UH, APPROVED OUR, OUR BUDGET.
UH, BUT AROUND THIS TIME OF THE YEAR, OUR FINANCE TEAM IS WORKING ON YEAR END CLOSE, AND, UM, WE'RE WORKING ON OUR ANNUAL COMPREHENSIVE FINANCIAL REPORT AND AUDIT, UH, CONCURRENTLY.
SO WITH THAT, WE'RE FINALIZING OUR FIGURES FOR FY 24 AND, UM, DANIEL GUTIERREZ WILL BE ABLE TO ADDRESS ANY QUESTIONS YOU MIGHT HAVE IN YOUR ATTACHMENTS.
UM, JUST A QUICK OVERVIEW THEN.
SO ON THE SEWER SIDE, IT'S PRETTY STRAIGHTFORWARD.
UH, WE EXPERIENCED ABOUT, UH, $800,000 IN INCREASED, UH, CIP SPENDING, UH, MOSTLY RELATED TO THE EMERGENCY REPAIRS.
UH, ON THE WATER SIDE, IT'S A LITTLE BIT MORE OF AN ACCOUNTING EXERCISE.
IT'S, UH, IT'S RELATED TO OUR, UH, REFINANCING OF OUR 2020 OR 2012 BONDS.
UH, SO THERE WAS A ADDITIONAL PAYMENT OF ROUGHLY $39 MILLION.
UH, SO WE NEED TO INCREASE THE APPROPRIATION, ALTHOUGH IT WAS OFFSET BY DEBT PROCEEDS.
SO THIS IS MORE OF JUST A TECHNICAL ACCOUNTING, UH, FOR THE WATER SIDE.
UM, IS THAT, DOES THAT CONCLUDE YOUR REPORT? YES.
DO I HAVE ANY PUBLIC COMMENT, COMMISSIONER COMMENT? YEAH, I'M EXPECTING SOMETHING FROM
SO HISTORICALLY WHAT WE DO WITH THE BUDGET PROCESS IS THAT IN DOING SO, WHEN YOU ADOPT THE BUDGET, YOU BY RESOLUTION SET IN THAT RESOLUTION, THE ACTUAL EXPENDITURE AMOUNTS THAT YOU'VE ESTIMATED AT THAT TIME WITH YOUR APPROVED BUDGET, THAT REPRESENTS A CAP ON THE SPENDING, UH, YOU TECHNICALLY CANNOT EXCEED THAT.
UH, AND SO THEREFORE, UH, WE USUALLY GO THROUGH THIS PROCESS IN FOURTH QUARTER.
IT GOES TO A FOURTH QUARTER ADJUSTMENT.
WE HAVE TO MAKE THE CORRECTION SO THAT THE RESOLUTION CONTINUES TO BE ACCURATE IN THAT SENSE THAT YOU HAVE INDEED AUTHORIZED THESE EXPENDITURES MORE OFTEN THAN NOT, AND IT'S OUR OBLIGATION TO EXPLAIN IT TO YOU.
MORE OFTEN THAN NOT, THESE ARE NEUTRAL.
SO, AS DANIEL WAS EXPLAINING, IN THIS CASE, UH, SPECIFICALLY ON THE WATER, FOR THE ACCOUNTING NECESSARY TO ADJUST FOR THE BONDS, THERE WAS ACTUAL, ACTUAL BOND PROCEEDS THEN.
AND SO THE EXPENDITURES ARE INCREASED.
BUT THEN THERE WERE PROCEEDS TO OFFSET IT.
AND SO IT IS FUND NEUTRAL IN THAT SENSE, IN BOTH THE WATER TRANSACTIONS AND THE SEWER TRANSACTIONS.
THEY ARE CONSIDERED FUND BALANCE NEUTRAL.
THE NET EFFECT OF IT HAS NO EFFECT OF THE FUND BALANCE THAT YOU STARTED WITH FOR FISCAL YEAR 25.
IT'S JUST MATHEMATICALLY ACCOUNTING FOR IT IN THE RESOLUTION YOU HAD PREVIOUSLY ADOPTED.
HOW DID I DO DANIEL? PRETTY GOOD.
SO NOT NONETHELESS, THERE CAN STILL BE QUESTIONS.
I JUST WANTED TO PROVIDE THAT ADDITIONAL CLARIFICATION.
WELL, FIRST OF ALL, FIRST OF ALL, JEAN IS VERY, VERY CLEVER TO, IN EACH OF THE, UH, COMMITTEES, SHE APPOINTS A SMART GUY AND A DUMB GUY.
UM, ON THE FINANCE COMMITTEE, THE SMART GUY IS TO MY RIGHT, I'M UNFORTUNATELY THE DUMB GUY.
SO I'M GONNA ASK, HAVE TO ASK YOU THE QUESTION.
UH, THAT MAY SEEM A LITTLE DUMB BECAUSE IT IS DUMB.
THE TOTAL APPROPRIATION SEEMS TO BE SO SIGNIFICANTLY DIFFERENT.
UH, COULD YOU EXPLAIN THAT AGAIN AND MAYBE YOU YEAH, THAT WAS THE, UH, DEBT PROCEED.
SO IN ORDER TO REFINANCE OUR BONDS, WE FIRST HAD TO PAY THEM OFF, AND THAT IS THE PAYMENT OF THOSE BONDS.
SO THAT WAS PART OF THE REFINANCING.
SO THE 39 MILLION WAS TO PAY OFF THOSE BONDS.
SO WE, SO IN, IN THE BOND ACTION THAT THE BOARD TOOK, PART OF THAT ACTION WAS TO TAKE OUT A BOND THAT ACTUALLY REFINANCED THE PREVIOUS BONDS.
IN REFINANCING THE PREVIOUS BONDS, THOSE ARE HELD BY, UM, BY, UH, LENDERS TO US.
AND SO WE HAVE TO ACTUALLY PAY THEM OFF.
SO THERE WAS AN ACCOUNTING OF IT THAT THERE WAS A COST GOING OUT THE DOOR OF PAYING OFF THOSE BONDS.
AT THE SAME TIME, THOUGH, THE MONEY USED TO PAY THEM OFF WAS NOT OUT OF OUR BUDGET.
AND A SURPRISE, WE WERE ACTUALLY TAKING THE NEW BOND PROCEEDS AND PAYING THOSE DEBTORS OFF.
AND SO WE HAVE A NEW SERIES OF LENDERS THAT WERE RESPONSIBLE FOR, BUT IN THE COUNTING TRANSACTION, WHEN WE PAID OFF THOSE BONDS IN THE RESOLUTION
[00:50:01]
THAT YOU SET, THAT RESOLUTION DID NOT ACCOUNT FOR THAT TRANSACTION.AND SO THEREFORE WE HAD TO GO BACK AND REESTABLISH THAT AMOUNT.
UM, THAT WORKED REALLY WELL, THOUGH.
DON'T THINK A LITTLE HANDOFF HERE.
AND THERE CAN BE MORE QUESTIONS.
I DON'T MEAN TO TRIVIALIZE IT.
IT IS AN IMPORTANT NOTE AND IT IS DIFFICULT SOMETIMES TO UNDERSTAND.
BECAUSE IN, IN, FOR TRANSPARENCY AND FOR CLARITY, THIS IS WHAT OBLIGATES US TO YOU, THE BOARD, TO MAKE SURE THAT IN ESSENCE THERE ISN'T ANYTHING MISSED.
AS WE CLOSE OUT THE YEAR, IF THERE'S SOMETHING ACTUALLY THAT CLOSED OUT THE YEAR THAT WAS NOT FUND BALANCE NEUTRAL, WE WOULD ACTUALLY HAVE TO DISCUSS IT HERE AND CLOSE IT OUT.
THAT'S THE OTHER ADVANTAGE OF THIS PROCESS.
I THINK WE HAVE CLARITY AROUND THAT.
WE HAVE A ROLL CALL VOTE HERE.
UM, SEEING NO MORE COMMISSIONER COMMENTS, UH, DO I HAVE A MOTION TO APPROVE? MOTION.
NOW, UM, AT THIS TIME, WE'RE GONNA TAKE A 15 MINUTE BREAK AND, UH, THE STAFF WILL RESET REARRANGE THIS ROOM FOR THE NEXT PORTION OF OUR MEETING, WHICH IS A BOARD WORKSHOP, AND WE WILL RECONVENE IN 15 MINUTES.
SO WE ARE AT SEVEN MINUTES TO 10.
UH, BECAUSE OTHERWISE I MIGHT FORGET, UH, FOR THE, UH, FINANCE COMMITTEE MEETING, COULD I REQUEST THAT THE CITY ATTORNEY PROVIDE US AND REALLY THE, THE ENTIRE, UM, BOARD WITH, UH, COPIES OF ALL, UM, CHARTER SECTIONS THAT THE CITY ATTORNEY DEEMS RELEVANT TO OUR, UH, BUDGET DELIBERATIONS, UH, WITH REGARD TO GAS AND WATER, UH, AND ANY, UM, UH, CITY ATTORNEY OPINIONS, IF THERE ARE ANY, UH, ON THE SUBJECT.
IS THERE ANY PROBLEM WITH THAT, MARSHA? NO, WE CAN DO THAT.
OKAY, SO WE, UH, WE'LL RECONVENE IN 15 MINUTES.
SO, UM, SO AT 10 MINUTES AFTER 10, WE'LL BE BACK IN THE ROOM FOR OUR NEXT, THE NEXT PORTION OF OUR MEETING.
[00:55:41]
YEAH, I[01:09:05]
[01:09:15]
OKAY, EVERYONE TAKE THEIR SEATS.[5. 25-54394 Board Workshop: Overview of trends in the Water and Sewer industries in southern California, including input from interviews with Long Beach Public Utilities Department staff and the Board, to provide background information for a future board retreat session. Suggested Action: Receive and file. ]
UM, SET ASIDE SOME TIME TODAY.SOMETHING WE RARELY DO ACTUALLY, BUT SOMETHING THAT ALL OF US AS COMMISSIONERS AND THE, THE LEADERSHIP FOR OUR DEPARTMENT ARE VERY COMMITTED TO AND INTERESTED IN, UH, JUST REALIZING THAT WITH THE MERGER OF BOTH OF OUR DEPARTMENTS INTO ONE, AND, AND ALSO THE FACT THAT THREE OUT OF FIVE OF US COMMISSIONERS ARE RELATIVELY NEW.
WE HAVE TWO SEASONED COMMISSIONERS, BUT WE'RE, WE'RE REALLY
[01:10:01]
STRIVING AND DEDICATED TO, TO RAISING OUR LEVEL OF KNOWLEDGE AND AWARENESS FOR EVERYONE, FOR STAFF, AS WELL AS ALL OF US.SO, I, WITH THAT, I, UH, TURN THIS SECTION OF OUR MEETING OVER TO ANNA TO ALLIGAN.
SO, IT, IT IS, IT IS AN IMPORTANT STEP FORWARD, I THINK, FOR US TO COME TOGETHER AND SPEND TIME IN THIS MANNER, UH, TO ASSEMBLE THIS, THIS BACKGROUND KNOWLEDGE ON BOTH THE WATER AND SEWER INDUSTRY.
AND THEN WE HAVE ONE COMING LATER ON THE GAS INDUSTRY.
AND THEN AS WE DO THAT, WE'RE COLLECTIVELY TAKING STEPS TOWARDS THE RETREAT THAT HAD BEEN, UM, POSITIONED WITH YOU.
AND WE'VE NOW TARGETED THAT FOR MARCH 31ST.
UM, I'M GONNA TRANSITION OVER TO ED MEANS WHO'S GONNA INTRODUCE HIMSELF SHORTLY, BUT I WANTED TO REFLECT ON THE PRESENTATION THAT ED HAS.
AND IF YOU, UH, THINK BACK TO SCHOOL AND FOR PRESIDENT MCGUIRE FOR ST.
ANTHONY'S, YOU COULD LOOK AT THIS AND WONDER IF THERE'S GOING TO BE A TEST.
AND IT IS MY DIRECT COMMUNICATION TO YOU TO KNOW THAT THERE IS NO TEST.
UM, IT'S AN, AN INFORMATION SESSION.
IT'S MEANT TO TRIGGER SOME THOUGHTS ON YOUR BEHALF, SOME THOUGHTS ON BEHALF OF THE EXECUTIVE TEAM THAT'S HERE TO TRIGGER DIALOGUE, CONVERSATION.
AND AS WE STEP FORWARD TOWARDS THE RETREAT, IT'S INCUMBENT UPON US AS STAFF TO WORKING WITH YOU, THE BOARD.
IF THERE'S INSIGHT TO BE DRAWN FROM HERE, WE WILL BRING IT BACK AND WE WILL POINT IT OUT AND WE'LL USE IT AS A BASE OF REFERENCE ON ONE OR MORE ASPECTS OF WHAT WE'RE TRYING TO DO.
SO IN THAT REGARD, I HOPE THAT THE INFORMATION THAT YOU GATHER HERE IS MORE A BASE AND A REMEMBRANCE OF THAT, AND NOT NECESSARILY THAT YOU FIND YOURSELF HAVING TO FURIOUSLY TRY TO REMEMBER OR TAKE NOTES.
WE'LL, WE'LL WORK TOGETHER ON THAT.
UM, I'VE KNOWN ED FOR MULTIPLE DECADES.
UH, WHEN I WAS VERY EARLY ON IN MY CAREER, ED WAS AN INCREDIBLE PART OF MY CAREER, UH, AND ME GETTING TO WHERE I AM TODAY.
SO I'M ALWAYS GRATEFUL FOR OUR RELATIONSHIP, KNOWING THAT HE HAS SO MUCH IN HIS BACKGROUND.
I COULD NOT POSSIBLY DO JUSTICE IN INTRODUCING HIM.
SO I'M GONNA ALLOW ED TO INTRODUCE HIMSELF.
AND THEN, UH, I'LL JOIN BACK IN AS ED MOVES FORWARD THROUGH THE PRESENTATION.
SO ED, I'LL TURN IT OVER TO YOU.
AND, UH, AND THANK YOU TO THE, UH, BOARD FOR HAVING ME HERE TODAY.
I GOT A TIMER GOING, SO I AM PUNCTUAL HERE IN YOUR SCHEDULE.
UH, IT'S MY PLEASURE TO BE HERE.
UM, I, AS ANTO HAD MENTIONED, I HAD BEEN IN THE, UH, WATER BUSINESS FOR MANY YEARS, 44 TOTAL, WHICH IS PRETTY HARD TO IMAGINE.
UM, I STARTED OUT AS A MICROBIOLOGIST AND I DID GRADUATE WORK AT UC, IRVINE, AND THEN, UH, GOT A, MY FIRST JOB OUTTA COLLEGE WAS AT METROPOLITAN WATER DISTRICT IN THEIR LABORATORY.
AND, UM, AND OVER TIME I THEN I RAN THE LABORATORY, UH, I DUNNO IF IT WAS PETER PRINCIPAL OR SHEER BRILLIANCE.
I THINK THE LATTER, BUT I'M WILLING TO CONSIDER IT WAS THE FORMER.
THEY MOVED ME OVER INTO RESOURCES WHERE I, UH, HAD RESPONSIBILITY FOR THE COLORADO RIVER AQUEDUCT AND GOT STEEPED IN STATE WATER PROJECT AND THE WATER SUPPLY STUFF THAT'S THERE AT THE BEGINNING OF THE LOCAL RESOURCES PROGRAM AT METROPOLITAN.
DID THEIR, UM, FIRST IRP IN THE EARLY NINETIES, UM, EARLY, STARTED IN THE EARLY NINETIES.
UM, AND THEN, UH, I MOVED THERE INTO OPERATIONS AND, UH, WORKED WITH ABOUT A THOUSAND OF THE METROPOLITAN EMPLOYEES THAT MAKE WATER MOVE.
AND I GAVE ME A WHOLE APPRECIATION FOR KIND OF THE FUNDAMENTAL PART OF WHAT WE DO IN UTILITY SERVICES, MAKE THESE SERVICES AVAILABLE TO OUR CUSTOMERS.
AND THEN FROM THERE, I MOVED INTO, UM, WELL ALONG THE WAY, I DID METS RATE STRUCTURE, FIRST RATE STRUCTURE REVISION, MANAGED THAT IN THE, ALSO IN THE EARLY NINETIES, WHICH, YOU KNOW, SET OFF A CASCADING SET OF, OF ANGST AND, YOU KNOW, HAND WRINGING OVER THE ENSUING DECADES.
UM, AND, BUT NONETHELESS, UH, GOT EXPOSED TO THE FINANCIAL SIDE OF THINGS AND THEN WAS CHIEF OPERATING OFFICER FOR A COUPLE YEARS AND WAS ACTING GENERAL MANAGER FOR, UH, ABOUT SIX MONTHS.
AND AT THAT POINT, THEN I WENT INTO, UH, CONSULTING WITH A SMALL ENVIRONMENTAL CONSULTING FIRM, A GUY NAMED MIKE MCGUIRE, WHO YOU MAY, UH, IN FACT TODAY THEY'RE DEDICATING THE LABORATORY TO DR. MCGUIRE AT YOU MAY.
WE BUILT IT UP TO ABOUT 40 PEOPLE.
WE SOLD IT TO MALCOLM PERIE, CAME IN.
AND THEN MALCOLM PER MALCOLM PERIE WAS ABOUT A 2000 PERSON CONSULTING FIRM BASED IN NEW YORK.
AND THEN IN 2000 AND UH, NINE, WE SOLD MALCOLM PERIE TO ARC, WHICH IS A 20, WAS IT 27,000 INTERNATIONAL FIRM.
SO ALONG THE WAY, I, I STARTED OUT IN AN INCH WIDE AND A MILE DEEP AS A MICROBIOLOGIST SCIENTIST.
AND THEN OVER TIME, I'VE BECOME A MILE WI, YOU KNOW, A A MILE WIDE AND AN INCH
[01:15:01]
DEEP, RIGHT? SO, BUT THE VALUE OF ALL OF THAT IS I'M PRETTY GOOD AT CONNECTING THINGS.I KNOW I KNOW A LOT ABOUT, A LITTLE ABOUT A LOT OF THINGS.
AND SO IT'S BEEN HELPFUL IN ME PROVIDING STRATEGIC CONSULTING SERVICES TO, UH, TO FOLKS.
I THINK WE'VE GOT AN ADVANCE HERE.
SO I PARTICULARLY LIKE THIS ONE.
IF YOU'RE, IF YOU'RE, IF ANYONE DOES ANY KIND OF SKIING, YOU'VE SEEN MAYBE THIS ONE AT THE END OF A CHAIRLIFT AND YOU BETTER KIND OF FIGURE OUT ARE YOU GOING LEFT, RIGHT, OR STRAIGHT? RIGHT? BECAUSE IF YOU DON'T SORT THAT OUT, IT'S A CATASTROPHE AT THE, UH, AT THE EXIT POINT.
UM, SO, UH, LET ME ALSO JUST KIND OF POINT OUT THAT A COUPLE KIND OF KEY THINGS THAT, UH, KIND OF COLOR MY PERSPECTIVE ON WATER UTILITY AND STRATEGIC PLANNING.
UM, SO, UH, TWO KIND OF MAYBE MAJOR THINGS.
THIS THE STRATEGIC RESEARCH WITH THE WATER RESEARCH FOUNDATION.
SO I LED A, A NATIONAL TEAM OF, OF, OF RESEARCHERS ON A STRATEGIC ASSESSMENT OF THE FUTURE OF WATER UTILITIES IN THE EARLY TWO THOUSANDS.
AND THIS BROUGHT TOGETHER LEADERS, BOTH NATIONAL AND INTERNATIONAL TO REALLY SIT DOWN AT THE TURN OF, YOU KNOW, Y 2K, BASICALLY TO SAY, YOU KNOW, WHERE IS THIS INDUSTRY GOING? THERE WAS A LOT OF CHANGE, A LOT OF DYNAMICS GOING ON, YOU KNOW, AND OUT OF THAT EFFORT CAME A, UM, IT ULTIMATELY GREW THE EFFECTIVE UTILITY MANAGEMENT PRINCIPLES.
YOU KNOW, GREW, GREW SORT OF A MORE FORMALIZATION, AND I'M NOT TAKING CREDIT FOR IT, BUT IT WAS JUST ONE OF THE FIRST SORT OF EFFORTS AT THIS STRATEGIC FUTURE THINKING THAT GOT ME REALLY ENTHUSED ABOUT OUR FUTURE COLLECTIVELY IN UTILITIES.
SO IT SET IN PLACE A NUMBER OF ACTIONS IN THE UTILITY INDUSTRY THAT REALLY UNDERSCORED THE NEED TO THINK ABOUT WHERE WE'RE GOING AND IF THERE ARE ANY HOCKEY PLAYERS IN THE, UH, IN THE ROOM OR FANS IN THE ROOM.
WAYNE GRETZKY HAD A VERY FAMOUS QUOTE WHEN HE WAS ASKED ABOUT HOW HE WAS SO SUCCESSFUL IN HIS CAREER AS A HOCKEY PLAYER, AND YOU PROBABLY HAVE HEARD OF IT.
HE SAID, YOU KNOW, IT'S BECAUSE I SKATE TO WHERE THE PUCK IS GOING TO BE, NOT WHERE THE PUCK IS.
SO THIS WHOLE IDEA OF THINKING STRATEGICALLY ABOUT WHERE THINGS TAKE US IS REALLY THE THEME OF WHAT I WANT TO TALK TO YOU HERE TODAY? UM, AND A AND A COUPLE CAUTIONARY PRINCIPLES ALONG THE WAY.
FAMILIARITY WITH CALIFORNIA WATER ISSUES.
RIGHT NOW, I'M A FACILITATOR FOR THE TWO EXPERT PANELS FOR PURE WATER SAN DIEGO AND PURE WATER SOUTHERN CALIFORNIA.
SO I GET A CHANCE TO WORK WITH THESE, YOU KNOW, INTERNATIONALLY KNOWN, UM, EXPERTS, ACADEMICS MOSTLY, UM, THAT, THAT ARE HELPING CHART THE WAY WITH WHERE RECYCLED WATER IS GOING.
UH, AND THEN I ALSO FACILITATE FOR THE STATE WATER CONTRACTORS, THEIR BOARD ANNUAL RETREATS, WHERE THEY'RE TALKING ABOUT ISSUES GOING ON WITH THE STATE WATER PROJECTS.
SO I'VE BEEN BLESSED TO BE ABLE TO TOUCH MANY OF THESE AND WORK WITH SOME REALLY SUPER PEOPLE.
SO, AND TODAY IS EVIDENCE OF THAT.
SO THANK YOU FOR HAVING ME HERE.
WHAT I WANNA DO OVER THE COURSE OF THE MORNING IS FOCUS ON SOME OF THESE MAJOR TRENDS.
SOME OF 'EM ARE GONNA BE IMPORTANT TO YOU, SOME OF THEM GONNA BE MAYBE IMPORTANT TO YOU, SOME OF THEM PRO MAYBE NOT.
BUT THE IDEA IS TO JUST BE THOUGHTFUL ABOUT HOW THESE THINGS PLACE.
SO WHEN YOU'RE DOING STRATEGIC THINKING, AND ULTIMATELY WHEN YOU MOVE INTO STRATEGIC PLANNING, YOU'RE, YOU'RE, YOU, YOURSELF, AS BOARD MEMBERS, AS COMMISSIONERS, YOUR STAFF ARE CHALLENGING YOUR THINKING ABOUT ARE YOU POSITIONING THE ORGANIZATION TO BE EFFECTIVE IN THAT FUTURE? AND BECAUSE WE'RE IMPERFECT IN JUDGING WHAT THE FUTURE IS, IT MEANS THAT OUR PLANNING HAS TO BE FLEXIBLE.
I MEAN, IN THE LAST FIVE YEARS, WHO WOULD'VE GUESSED WHERE, YOU KNOW, OUR INDUSTRY HAS COME FROM AND, AND WHERE IT'S GOING.
WE WANNA SPEND SOME TIME DISCUSSING IMPLICATIONS.
UM, WE'LL SET SETTING THE STAGE ULTIMATELY FOR, AND, AND ANTO WILL SPEAK TO THIS LATER ABOUT YOUR STRATEGIC PLANNING EFFORT LATER, UH, THIS YEAR, UM, HIGHLIGHTING SOME MAJOR POLICY DECISIONS.
ANTO WILL COVER THAT IN DISCUSSION OF THE MARCH RETREAT.
HE WILL ADDRESS THAT AS WELL FOR YOU.
IT'S REALLY INTENDED TO BE A KIND OF A PROVOCATIVE LOOK AT SOME THINGS THAT ARE GOING ON OUT THERE THAT MAY TOUCH YOU AND MAY BE REALLY IMPORTANT AND THAT YOU WANT TO THINK ABOUT.
AS YOU BEGIN, UH, BEGIN THINKING ABOUT YOUR MEDIUM TO LONGER TERM STRATEGIES, FORMAL AGENDA FOR THE DAY.
UH, I'LL SPEAK FOR ABOUT AN HOUR.
IT'S INTENDED TO NOT BE A LECTURE, SO PLEASE INTER, YOU KNOW, IN INTERJECT QUESTIONS ALONG THE WAY.
AND I'M HAPPY TO, UH, TO, UH, TO DISCUSS ANYTHING THAT STIMULATES YOUR THINKING HERE.
UM, WE'LL THEN TALK ABOUT, ONCE WE GET THROUGH WITH INTRODUCTIONS HERE, WE'LL TALK ABOUT THE STRATEGIC THINKING TRENDS AND, AND THOSE IMPLICATIONS, AGAIN, THE MARCH RETREAT, NEXT STEPS, AND THEN CLOSING.
SO, SO LONG BEACH UTILITY SERVICES, YOU REALLY UNUSUAL IN THE FACT THAT YOU GOT WATER, WASTEWATER AND GAS.
SO THERE'S NOT MANY OF UTILITIES OUT THERE THAT DO THE RANGE OF SERVICES THAT YOU DO, BUT YOU'RE ALSO A NATURAL MONOPOLY, LIKE MOST
[01:20:01]
WATER UTILITIES, RIGHT? WE BUILT THESE UTILITIES TO, BECAUSE THEY'RE EXPENSIVE INFRASTRUCTURE, IT MAKES NO SENSE TO DUPLICATE IT.YOU KNOW, YOU, YOU NEED TO, YOU KNOW, YOU CAN EFFECTIVELY, AND MOST COST EFFECTIVELY DELIVER IT IF YOU HAVE A SINGLE PLAYER DOING IT.
AND THAT'S BEEN THE MODEL IN THE UNITED STATES.
BUT ALONG WITH IT COMES KIND OF A SPECIAL RESPONSIBILITY, RIGHT? BECAUSE THERE IS NO NATURAL COMPETITOR.
IT, IT FALLS ON THE STAFF AND THE BOARDS AND COMMISSIONS TO MAKE SURE THAT YOU'RE CONSTANTLY SORT OF HUNGRY IN THAT SENSE, RIGHT? AND SO PART OF WHAT WE TALK ABOUT ON SOME OF THESE TRENDS IS, YOU KNOW, HOW DO YOU STAY HUNGRY IN THE LIGHT OF THESE THINGS THAT ARE GOING ON AND AVOID ANY LEVEL OF COMPLACENCY THAT ULTIMATELY RESULTS IN, UH, POTENTIAL ISSUES FOR YOU AS A UTILITY OR FOR YOUR CUSTOMERS? AND WE'LL HIT ON SOME OF THESE AS WE GO.
UM, A MAYOR APPOINTED COMMISSION OF MULTIPLE STAKEHOLDERS, YOU HAVE OBVIOUSLY YOUR RATE PAYERS, YOU HAVE THE BUSINESS COMMUNITY, YOU HAVE THE POLITICAL COMMUNITY HEARD EARLIER ABOUT THE EFFORTS UNDERWAY IN DC AND HOW DO YOU MAKE THE, LEVERAGE THOSE TO YOUR, YOU KNOW, BEST EFFECT STATE LEVEL? UH, AND YOU'RE ONE, AN IMPORTANT PLAYER IN A WESTERN US WATER SETUP HERE, RIGHT? I MEAN, SO, YOU KNOW, WE USED TO HAVE RELIABILITY OUT OF THE COLORADO, OUT OF THE STATE DUE TO A NUMBER OF ACTIONS AND HYDROLOGY, WE'LL TALK ABOUT CLIMATE CHANGE IN A SECOND.
IT'S LE MUCH LESS CERTAIN THAN IT WAS BEFORE, RIGHT? AND SO, HOW DO WE PLAN, HOW DO WE BECOME, ENSURE THAT WE'RE RESILIENT? SO DOWN THE ROAD, WE HAVE RELIABLE SUPPLIES, AFFORDABLE SUPPLIES, HIGH QUALITY SUPPLIES FOR OUR, UH, FOR OUR CUSTOMERS.
SO WHEN I FIRST, UH, FIRST WAS IN, IN GRADUATE SCHOOL, I WORE, THE FIRST PROJECT I WORKED ON WAS AN EPA PROJECT.
AND IT WAS DESIGNED TO LOOK AT THE REGROWTH OF BACTERIA IN WATER SYSTEMS, RIGHT? BECAUSE AT THAT TIME, THIS IS SO EARLY EIGHTIES, WE WERE REALLY CONCERNED ABOUT WE BACTERIA, YOU KNOW, IN THE ENDS OF THESE DISTRIBUTION SYSTEMS, GROWING AND CREATING, UH, COLIFORM PROBLEMS, COMPLIANCE PROBLEMS, AND SO ON.
SO PART OF THE CHALLENGE THAT WE HAD IS WE HAD TO GO OUT AND COLLECT SAMPLES, BUT WE DID NOT WANT TO GO TO A DEAD-END AREA OF A WATER SYSTEM TO THE NEIGHBORS AND SAY, DO YOU MIND IF WE COLLECT WATER IN YOUR HOUSE? BECAUSE, YOU KNOW, WE'RE, WE HAVE THIS STUDY AND WE'RE KIND OF, YOU KNOW, I MEAN, IT'S JUST AN AWKWARD CONVERSATION.
SO WHAT WE ENDED UP DOING WAS WE WENT TO FIRE HYDRANTS IN THESE DEAD END AREAS.
AND, UH, THREE THINGS HAPPEN WHEN YOU OPEN UP A FIRE HYDRANT IN AN AREA THAT HASN'T HAD A LOT OF FLOW.
AND THE OPS FOLKS IN THE AUDIENCE KNOW, KNOW WHAT THESE THREE ARE, RIGHT? SO THE FIRST IS IT'S INCREDIBLY VISUAL, RIGHT? WATER RUSHES ACROSS THE STREET.
SECOND IS IT'S RUSTY RED WATER BECAUSE IT'S BEEN SITTING IN THE CASEMENT IN THIS DEAD END AREA.
AND THE THIRD THING IS, IS THAT EVERY CHILD FROM BLOCKS AROUND IS DRAWN LIKE A MAGNET TO THIS SCENE, RIGHT? SO THIS DAY, THE, WE, YOU KNOW, TRUE TO FORM, WE'D OPENED IT REAL VISUAL, REAL RED, AND TWO, UH, FIVE, FIVE AND A 6-YEAR-OLD BROTHER BROTHERS CAME RUNNING UP.
AND AS, AS YOUNG CHILDREN, DO YOU KNOW, THE HYDRANTS HERE? AND IT'S ROARING AND THE CHILDREN ARE LITERALLY RIGHT HERE, YOU KNOW, STARING AT IT.
AND MY PARTNER, WHO WAS COLLECTING THE SAMPLE HAD TAKEN THIS SAMPLE IN A GLASS BOTTLE, AND HE HELD IT UP, YOU KNOW, TO, FOR THE LITTLE BOYS TO SEE.
AND HE SAID, HOW'D YOU LIKE TO SWIM IN THIS? THIS IS RUSTY RED WATER.
AND THE, THE 6-YEAR-OLD, WITHOUT SKIPPING A BEAT, SAID, GEE, MR, I DON'T THINK I COULD FIT IN THERE
AND I LIKE TELLING THAT BECAUSE IT KIND OF HIT ON THREE OF THE LEVELS THAT WE'LL TALK ABOUT IN TERMS OF THESE TRENDS.
SO IT WAS QUANTITY, RIGHT? HE, THE LITTLE 5-YEAR-OLD, 6-YEAR-OLD, RATHER, HE WAS THINKING QUANTITY, RIGHT? AND WE WERE THERE THINKING QUALITY, RIGHT? THAT'S WHAT WE WERE ALL ABOUT, QUALITY.
AND THE THIRD ELEMENT OF IS THAT IF HE WAS A CUSTOMER, WE TOTALLY FAILED TO COMMUNICATE, RIGHT? SO WHAT, WHAT YOU'LL SEE IN THE EIGHT AREAS THAT I'LL TALK ABOUT HERE SHORTLY IS, UM, QUANTITY, QUALITY AND CUSTOMER WILL BE IMPORTANT.
AND THEN THE OTHER FIVE ARE THINGS THAT TOUCH ALL THOSE THREE AREAS, RIGHT? SO NEVER ASK, IT'S LIKE IN LAW, IN COURT, NEVER ASK A QUESTION YOU DON'T KNOW
SO, UM, AS YOU STEP BACK AND CONTEMPLATE WHERE THIS PUCK IS GONNA BE AND WHAT STEPS YOU NEED AS A COMMISSION AND A STAFF TO MAKE SURE YOU'RE POSITIONED AS A UTILITY, UM, EFFECTIVELY, UH, YOU KNOW, YOU, YOU WANT TO THINK ABOUT AGAIN, THE THINGS THAT ARE SHAPING WHERE THAT PUCK IS GOING, WHERE THAT FUTURE IS.
SO, WE'LL, WE'LL TALK ABOUT IT.
WHEN YOU DO THE STRATEGIC PLANNING, IT'S REALLY AN OPPORTUNITY FOR YOU TO ADDRESS THOSE ISSUES ON THE HORIZON.
ONE OF THE MOST IMPORTANT FEATURES OF IT THAT I'VE FOUND, AND I DIDN'T MENTION, I'VE DONE ABOUT 30 OR SO STRATEGIC PLANS FOR NATIONALLY, UM, UH, IN, AND YEAH, THAT'S THROUGHOUT THE COUNTRY FOR UTILITIES, WATER, AND WASTEWATER.
AND ONE OF THE MOST IMPORTANT THINGS THAT YOU FIND IS THAT
[01:25:01]
THE ABILITY TO KIND OF ALIGN THE VIEWPOINT OF THE BOARD WITH THE MANAGEMENT TEAM AND ULTIMATELY THE STAFF, THE FOLKS THAT ARE DOING THE LIFTING IN THE TRENCHES TO MAKE STUFF HAPPEN.SO IF YOU'RE EFFECTIVE IN YOUR STRATEGIC PLANNING, EVERYONE GETS ON THE SAME PAGE, RIGHT? AND SO YOU IDENTIFY THE IMPORTANT THINGS, THE BOARD SETS THE TONE, IDENTIFIES WHERE THE GOALPOSTS ARE, THE, THE HOCKEY NET, AND THEN TURNS IT TO YOUR MANAGER, WHO YOU'VE ENTRUSTED TO MANAGE THIS TEAM TO DEVELOP THE PLAYS, TO GET TO THAT AND BE ACCOUNTABLE TO YOU IN THAT PROCESS, RIGHT? SO, UM, ALIGNING THE ORGANIZATION COMMISSION SETS THE DIRECTION, OR THE BOARD SETS THE DIRECTION MANAGEMENT ACHIEVES IT.
YOU HAVE SYSTEMS IN PLACE TO MAKE SURE THAT THAT HAPPENS EFFECTIVELY, AND ACCOUNTABILITY IS BUILT INTO THE SYSTEM.
AND, AND THAT, THE NICE THING ABOUT THAT THIS MODEL IS THAT AS A BOARD, AS A COMMISSION, YOU HAVE THE RIGHT TO DRILL AS DEEP AS YOU WANT IN THE ORGANIZATION.
IT'S YOUR, IT'S, IT'S AN OBLIGATION AND A RIGHT, AN AUTHORITY.
YOU HAVE TO MAKE SURE ACCOUNTABILITY IS THERE.
YOU WANNA DELEGATE THE DETAILS TO YOUR MANAGEMENT TEAM, AND YOU HAVE AN EFFECTIVE MANAGEMENT TEAM.
SO IN STRATEGIC PLANNING, THINK ABOUT YOUR ROLE IN THE BIG PICTURE AND THEN THE ACCOUNTABILITIES OF THE MANAGEMENT TEAM IN THE DETAILS KIND OF THING.
AND THAT IT DOESN'T ALWAYS WORK CLEANLY LIKE THAT, BUT IF YOU CAN ADHERE TO THAT KIND OF CONCEPT, THOSE ARE, THOSE ARE THE HALLMARKS OF EFFECTIVE ORGANIZATIONS.
AND THEN FINALLY HERE, IT'S A LIVING DOCUMENT AND WE'LL TALK A LITTLE BIT ABOUT, UM, ABOUT STRATEGIC THINKING, UM, AND, AND THE FACT THAT THIS, THESE THINGS CHANGE OVER TIME.
SO THESE ARE, UH, EIGHT AREAS THAT WE'RE GONNA SPEND A LITTLE BIT OF TIME ON THE PRESENTATION SORT OF SET UP TO GIVE YOU SOME OF THE SORT OF FACTOIDS THAT SUPPORT OR, OR IDENTIFY THE ISSUE, AND THEN SOME IMPLICATIONS.
UH, AND THEN I'LL GIVE YOU SORT OF MY TAKEAWAY AND IT'S JUST THE WORLD THROUGH MY, YOU KNOW, WHATEVER.
AND IT, EVERYONE WILL HAVE THEIR OWN VIEWPOINT ON THESE THINGS.
AND YOU, IT'S UP TO YOU ULTIMATELY AS A TEAM TO DETERMINE HOW IMPORTANT THESE THINGS ARE OR HOW UNIMPORTANT THEY ARE.
BUT I'LL GIVE YOU THE BENEFIT OF MY, MY VIEWPOINT ON IT.
ALRIGHT? SO, UH, JUST TO CAUTIONARY, AND THESE, I JUST LOVE, THERE'S A DOZENS OF THESE WHERE PEOPLE HAVE JUST GOT IT WRONG.
SO AS WE, I PUT THESE UP FRONT.
SO WE JUST AS WE TALK ABOUT BIG TRENDS AND WHERE THAT PUCK IS GOING, AND IT UNDERSCORES THIS ADAPTIVE, UH, ISSUE FOR US IS THAT SOMETIMES IT DOESN'T TURN OUT LIKE YOU THINK, RIGHT? AND SO YOU WANNA MAKE SURE THAT YOU'RE MONITORING, YOU'RE TRACKING, YOU'RE ADJUSTING, YOU'RE NOT, YOU KNOW, YOU'RE DOING THINGS IF, IF YOU CAN INCREMENTALLY PRE, ESPECIALLY IN AN UNCERTAIN WORLD WHERE IF SOMETHING COMES UP, YOUR STRATEGY GETS SIDETRACKED.
SO KEN OLSON, HOW MANY OF YOU REMEMBER DIGITAL EQUIPMENT CORPORATION, RIGHT? THEY KIND OF WERE THE BIG MAINFRAME, RIGHT? BIG MAINFRAME PLAYERS.
THEY, THEY WERE UP THERE WITH IBM, RIGHT? THE, THE IT FOLKS HERE IN THE ROOM PROBABLY KNOW THAT.
SO HERE WAS THE PRESIDENT, CHAIRMAN, FOUNDER.
THERE'S NO REASON FOR ANY INDIVIDUAL TO HAVE A COMPUTER IN HIS HOME.
YOU KNOW, KIND OF MISSED THAT ONE.
1977, THE NEXT, UH, UH, EXAMPLE HERE, AMAZON, UM, THIS WAS TIME MAGAZINE, 1966, REMOTE SHOPPING WHILE ENTIRELY FEASIBLE WILL FLOP AMAZON CONTROLS LIKE 40% NOW OF THE, OF THE RETAIL MARKETS, SOMETHING LIKE THAT, YOU KNOW, IT'S AMAZING.
UM, AND SO THEY KIND OF MISSED, MISSED ON THAT ONE.
AND THEN THIS OTHER ONE, STEVE BALMER, WHO'S BILLIONAIRE, RIGHT? I MEAN, HE'S, HE'S DONE REALLY PRETTY WELL.
WELL, THIS MICROSOFT CEO, THERE'S NO CHANCE THAT THE IPHONE IS GOING TO GET ANY SIGNIFICANT MARKET SHARE, RIGHT? 2007.
SO IT'S BEST NOT TO BE COCKY ABOUT YOUR PREDICTIONS.
AND I, SO THAT'S MORE, THIS IS MUCH AN ADMONITION TO ME MAYBE AS IT IS TO YOU.
SO I, AS I GIVE YOU MY SORT OF TAKEAWAY ON SOME OF THIS STUFF, UM, YOU TAKE THOSE, TAKE ALL THAT AND USE IT IN YOUR OWN KIND OF THINKING, RIGHT? TO A TRUST WOULD VERIFY MAYBE, IS IT SO, AND THESE AREN'T IN ANY PARTICULAR ORDER, SO, OH, WELL, ONE OTHER THING I FORGOT TO MENTION IN MY INTRODUCTION.
SO MY DAD WORKED IN THE SHIPYARDS IN LONG BEACH AT WORLD WAR II, AND, UH, I ALWAYS REMEMBER HIM TELLING ME ABOUT THOSE EXPERIENCE.
HE WAS A FOREMAN ON ONE OF THE WELDING CREWS OF ALL THINGS.
SO I FEEL, I FEEL AT LEAST THROUGH THAT AS AN AFFINITY, RIGHT? UM, AND YOU, UH, YOU YOU'VE GROWN A LOT AS, AS A UTILITY.
I WAS LOOK ADMIRING LOOKING AT YOUR TIMELINE OUT IN THE HALLWAY THERE, AND I NOTED THAT IN 1960, SORRY, 1911, YOU HAD 18,000 CUSTOMERS, RIGHT? AND THEN 50 YEARS LATER, IN 1961, YOU HAD 352,000 CUSTOMERS, RIGHT? SO YOU HAD THIS HUGE BOOM.
AND, AND I KNOW JUST FROM MY DAD'S EXPERIENCE AND, UH, THERE IN THE SHIPYARD, SO THIS POST WORLD WAR II, YOU KNOW, THE WORLD WAR II WAR EFFORT AND POST WORLD WAR II BOOM,
[01:30:01]
BUILT A LOT OF INFRASTRUCTURE TO ACCOMMODATE THIS BOOMING AREA.AND IT WAS THE SAME THROUGHOUT SOUTHERN CALIFORNIA, BUT MY, I SURMISE IT WAS PROBABLY EVEN MORE SO HERE IN THE LONG BEACH AREA.
AND, UM, BECAUSE THIS INFRASTRUCTURE, YOU KNOW, THAT WAS PUT IN, IN THE FIFTIES, UH, FORTIES, FIFTIES, AND THEN LITERALLY UP, YOU KNOW, MORE AND MORE EVERY DECADE THEREAFTER, IT'S GOT A, IT'S NATURAL, IT'S GOT A NATURAL LIFE CYCLE.
AND A LOT OF THAT LIFE CYCLE DEPENDS ON WHERE, WHAT TYPE OF FACILITIES, WHAT TYPE OF MATERIALS, WHAT THE EXPOSURE OF THE FACILITIES ARE TO THE NATURAL ENVIRONMENT.
WHAT YOU ARE SEEING, UM, IN, IN YOUR UTILITY IS WHAT IS BEING SEEN THROUGHOUT THE US.
THIS IS A, THIS IS A UNIVERSAL REALITY THAT THIS INFRASTRUCTURE IS AGING.
THIS IS FROM SOME EPA AND AMERICAN SOCIETY OF CIVIL ENGINEERING, UH, REPORTS AND JUST SOME KIND OF FACTOIDS, WHICH IS INTERESTING.
2.3 MILES, A THIRD OF WHICH IS OVER 50 YEARS OLD.
THE AVERAGE FAILURE AGE IS 53 YEARS AVERAGE LEAK LOSS, 11%.
AND THAT'S WHERE, YOU KNOW, THESE, YOU KNOW, LEAKAGE BECOMES A FINANCIAL ISSUE FOR YOU, YOU KNOW, COST MONEY TO ELIMINATE IT, BUT IT ALSO COSTS YOU WATER TO NOT ELIMINATE IT, RIGHT? SO LEAK, UH, LEAK MANAGEMENT IS, UM, INCREASINGLY, UH, YOU KNOW, ON THE RADAR, UH, NEARLY 20%, AND THIS IS US WIDE, IS PAST ITS USEFUL LIFE AND WAS AT 8% IN 2012.
AND THE REASON FOR UTILITIES IN GENERAL IS THAT THERE JUST HAS NOT BEEN THE RESOURCES AVAILABLE.
'CAUSE THIS IS EXPENSIVE INFRASTRUCTURE AND REPAIRING IT IS EXPENSIVE NATIONALLY, A $452 BILLION FUNDING SHORTFALL, AND EACH YEAR THROUGHOUT THE US SOME 250 TO 300,000 MAIN BREAKS.
SO IT'S JUST SOMETHING THAT'S UNIVERSALLY HAPPENING IN THESE OLD SYSTEMS. UM, AND, AND, UH, AND, BUT IT'S SOMETHING THAT IS ON OUR RADAR, AND IT'S PROBABLY, UH, FROM THE STANDPOINT OF ALL UTILITIES, AND I SEE THIS IN WORKING WITH MOST OF THEM, IS THERE VARIOUS STAGES IN THEIR ASSET MANAGEMENT PROGRAMS AND, AND GENERALLY THEY'RE MOVING TOWARDS MUCH MORE AGGRESSIVE ASSET MANAGEMENT PROGRAMS. BUT THERE'S A VERY, VERY WIDE RANGE OF, YOU KNOW, ADOPTION OF THOSE, UH, OF THOSE PRINCIPLES.
I HAVE TWO GRAPHS HERE, ONE FOR YOUR WATER, UH, CAPITAL IMPROVEMENT PROGRAM.
AND THIS IS BACK FROM FISCAL YEAR 11 THROUGH FISCAL YEAR 29 PROJECTED.
AND SO YOU CAN SEE HERE, YOU KNOW, THERE WAS SOME A MI, UH, EXCUSE ME, YET CHARGES IN 18, UH, FY 18 TO 20, AND THEN YOU'VE GOT SOME SPECIAL REIMBURSABLE NUMBERS THAT ARE BUILT IN HERE AS WELL.
BUT IN GENERAL, YOU KNOW, YOU CAN SEE, AND NOT SURPRISINGLY, THESE COSTS ARE GOING UP AND, AND THE NEEDS ARE, ARE INCREASING.
AND I'M GONNA SHOW YOU LATER ABOUT SOME OF THE PRACTICAL EFFECTS OF, OF THE CONSTRUCTION ENVIRONMENT ON WHAT WE'RE DOING RIGHT NOW.
UM, I'M INVOLVED IN A PRO, A LARGE CONJUNCTIVE USE PROJECT THAT WAS ESTIMATED TO COST 290 MILLION IN 2019.
SO BEFORE COVID HIT THE ESTIMATES THAT HAVE JUST BEEN RE THE PROJECTS SINCE BEEN RE CRAFTED, BUT FOR THE SAME FACILITIES THAT COST 2 90, 200 90 MILLION IN 2019 OR 700 MILLION TODAY, SAME FACILITIES, RIGHT? AND IN THOSE CASES IT'S, I I THINK IT'S A LOT DRIVEN BY THE COST OF DRILLING WELLS, BUT EVERYTHING, LABOR CON MATERIALS, ALL THAT.
SO THESE COSTS, UH, ARE PUTTING PRESSURE ON, ON WATER UTILITIES, UH, THROUGHOUT, ON THE, UH, SEWER SIDE.
UM, AND, AND AGAIN, THANK YOU FOR THE STAFF FOR PROVIDING THIS, SOME OF THESE GRAPHICS HERE.
UM, AND YOU'VE GOT A COUPLE SPECIAL CONSIDERATIONS HERE EARLY ON AS YOU SEEK TO MOVE SOME OF THE OLYMPICS PLANNING, UH, PROJECTS EARLIER TO BE PREPARED THERE.
BUT YOU CAN, YOU KNOW, GENERALLY IF YOU HADD DREW STRAIGHT LINES HERE, YOU KNOW, IT'S, IT'S LUMPY FOR SURE, BUT YOU'VE GOT SOME, YOU KNOW, SIGNIFICANT SEWER, UH, COSTS DOWN THE ROAD AS WELL.
OKAY? SO WHEN I KINDA LOOK AT THESE THINGS FROM MY EXPERIENCE, SO WE'VE GOT THESE, THESE CONSTRUCTION COST PRESSURES.
SO THIS DECISION OF DO WE BUILD IT NOW WHEN IT'S CHEAPER, OR DO WE DEFER IT LATER WHEN IT MIGHT BE MORE EXPENSIVE? AND YOU FACTOR IN, YOU KNOW, IS THERE FEDERAL MONEY AVAILABLE TO DO IT? OR STATE IS IT GETTING GOOD? RIGHT? THESE ARE ALL LEGITIMATE PLANNING QUESTIONS FOR YOU, BUT WE DO KNOW INEXORABLY INFRASTRUCTURE'S GETTING OLDER, GENERALLY REPAIR AND REPLACEMENT CAPITAL SPENDING IS RISING FOR WATER AND WASTEWATER UTILITIES.
AND JUST THIS NOTION THAT, YOU KNOW, SOONER OR LATER, YOU KNOW, IT'S GENERALLY MORE EXPENSIVE TO REPLACE IT WHEN IT BREAKS UNLESS YOUR STRATEGY IS TO RUN TO FAILURE.
AND SOME THINGS ARE, IT'S A PERFECTLY GOOD STRATEGY.
AND A CLASSIC EXAMPLE IS, IS, UM, UH, CIRCUIT BOARDS FOR THE OLD P SEASON AND THE LIKE, BECAUSE THOSE, YOU KNOW, USED TO BE YOU'D HAD A MAKE AN ELECTRONIC TECH TECHNICIAN IN,
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IN A ELECTRONICS LAB THAT WOULD REPLACE THE, YOU KNOW, PARTS ON IT, BUT THEN THEY BECAME SO CHEAP AND JUST REPLACE THE WHOLE BOARD.SO THERE ARE EXAMPLES WHERE IT MAKES ECONOMIC SENSE TO RUN TO FAILURE, UM, UH, BUT GENERALLY, AGAIN, IT'S MORE EXPENSIVE.
AND, AND PART OF THIS TOO, UM, REFLECTS IN THE FACT THAT, YOU KNOW, YOUR OPERATIONS STAFF, GENERALLY, IF THEY'RE REACTING TO THINGS, YOU KNOW, THAT IT'S BETTER TO DO THE PREVENTATIVE THAN THE REACTIVE, JUST IN TERMS OF THE ECONOMICS OVERALL.
UM, AND AGAIN, THIS IS SOMETHING THAT EVERY UTILITY IS, UM, IS, IS SENSITIVE TO AND, AND EXPERIENCING.
UM, SO BOTTOM LINE HERE, THAT UNDERSTANDING OF ASSET CONDITION REPLACEMENT NEEDS, THIS WILL BE A MAJOR COST FOR, UH, DOWN THE ROAD.
AND IT'S A REALLY IMPORTANT COMMUNICATIONS POINT FOR, UM, FOR YOUR CUSTOMERS TOO.
BECAUSE AS PEOPLE, AS YOU PASS THESE RATE INCREASES ALONG TO DO THESE FUNDAMENTAL PROJECTS, YOU KNOW, THIS IS ALL A COST DRIVER AND WE'LL TALK ABOUT AFFORDABILITY LATER, RIGHT? SO HAVING THAT STORY, UNDERSTANDING THESE DRIVERS AND MAKING SURE THE PUBLIC UNDERSTANDS MANY OF THESE THINGS ARE NOT IN UNDER YOUR CONTROL.
AND WE'LL TALK ABOUT SOME OF MORE OF THESE LATER.
SO, TECHNOLOGY, UM, I WANT, I HAVE A COUPLE EXAMPLES HERE, AND I JUST DID THREE, THERE'S PROBABLY A DOZEN BIG TECHNOLOGY THINGS THAT ARE REMARKABLE.
SO QUANTUM COMPUTING, YOU MAY HAVE HEARD ABOUT, AND IBM'S GOT A QUANTUM COMPUTER, UM, LET'S SEE, I THINK IS IT META MIGHT BE ORACLE, BUT, BUT THE ONE THAT'S GOT MOST, UM, ATTENTION GOOGLE IS, UH, YEAH, IT WAS GOOGLE AND I AND IBM.
SO GOOGLE'S PROCESSOR, WILLOW, THIS JUST BLEW ME AWAY, AND I'LL CONNECT SOME DOTS HERE FOR IN A SECOND.
IT DEMONSTRATE ITS POTENTIAL BY SOLVING A COMPUTATIONAL PROBLEM IN JUST FIVE MINUTES THAT THE MOST POWERFUL SUPERCOMPUTERS COULD NOT TACKLE WITHIN THE AGE OF THE UNIVERSE.
OKAY? SO, AND JUST CONNECTING A.HERE FOR YOU, HOW MANY OF YOU HAVE RESET YOUR PASSWORDS TO 11 DIGITS AND IT'S ALPHA, IT'S NUMERIC, AND IT'S A SYMBOL OR TWO OR SOME, RIGHT? BUT 11 DIGITS, RIGHT? AND THAT IS GENERALLY THE KIND OF THE RECOMMENDATION FOR, YOU KNOW, FOR A PASSWORD, RIGHT? NOT EVERYONE DOES IT.
HOPEFULLY YOU'RE NOT 1, 2, 3 A, B, C, RIGHT? BUT THAT'S GENERALLY THE RECOMMENDATION FOR A HACKER TODAY.
IT WOULD TAKE THEM 41 YEARS TO CRACK THAT.
THEY COULD CRACK IT, BUT IT WOULD TAKE 'EM 41 YEARS, WHICH IS PRACTICALLY NO HACKER IN THE RIGHT MIND'S GONNA SPEND 41 YEARS.
HOWEVER, IF YOU SEE THIS KIND OF EFFICIENCY IN COMPUTING POWER, IT'S NOT VERY LONG BEFORE A SUPERCOMPUTER LIKE THIS, A QUANTUM PROCESSOR COULD CRACK 256 BID ENCRYPTION.
AND THAT IS THE FOUNDATION OF OUR FINANCIAL SYSTEMS. IT'S THE FOUNDATION, IT'S, YOU KNOW, IT'S HOW OUR, THE GLUE OF OUR SOCIETY, AND I'M NOT TRYING TO BE THE DOOMERS HERE KIND OF THING, RIGHT? BUT THERE'S A REASON WHY THE US IS PUSHING HARD ON THESE TECHNOLOGIES AND ARTIFICIAL INTELLIGENCE WE'LL TALK ABOUT HERE IN A SECOND.
SO THESE ARE A WAYS OFF, PROBABLY FIVE TO 10 YEARS KIND OF THING, REALISTICALLY, BUT THEY ARE OUT THERE.
AND SO YOUR POSTURE ON IT, SECURITY, CYBERSECURITY, AND THE LIKE, IS GONNA BE A MUCH BIGGER THING GOING FORWARD, RIGHT? SO, YEAH, I, I THOUGHT THAT WAS REALLY MIND, MIND BOGGLING HERE.
SO THE NEXT ONES I WANT TO TALK ABOUT IS ON REGULATIONS.
AND SO I'VE GOT A GRAPHIC I'M GONNA SHOW YOU HERE IN A SECOND, BUT THESE CONTAMINANTS OF EMERGING CONCERN ARE GONNA CONTINUE TO GARNER REGULATORY ATTENTION.
AND THERE'S A COUPLE THINGS THAT ARE DRIVING THAT I'LL TALK ABOUT HERE IN A MOMENT.
AND THEN ARTIFICIAL INTELLIGENCE, UM, AND IT, THE REGULATIONS ONE, ALL DO UNDER ITS OWN TOPIC, SO WE'LL, WE'LL SWING BACK TO THAT, BUT IT'S A TECHNOLOGY DRIVEN, UH, IN PART ISSUE.
ARTIFICIAL INTELLIGENCE, YOU'VE HEARD A LOT ABOUT IT.
UM, LARGE LANGUAGE MODELS WILL BOOST PRODUCTIVITY, BUT THEY ALSO CAN HAVE IMPLICATIONS FOR COSTING JOBS AND WIDENING, UH, INCOME DISPARITIES.
SO THAT TOUCHES THIS AFFORDABILITY ISSUE TOO, THAT WE'LL TALK ABOUT HERE IN A SECOND.
THE LARGE LANGUAGE MODELS, UM, THEY, UH, THERE'S JUST SOME AMAZING STUFF ON THE SURFACE.
YOU KNOW, IT'S, IF YOU ASK, AND I DON'T KNOW WHAT THE STATS ARE FOR YOUR STAFF, BUT OTHER UTILITIES WHERE I'VE ASKED, YOU KNOW, HOW MANY OF YOUR FOLKS ARE USING CHAT, GPT OR SOME OTHER ARTIFICIAL INTELLIGENCE IN THEIR WORK, IT'S ABOUT 40%, RIGHT? SO THEY'RE USING IT, BUT YOU KNOW, GENERALLY IT'S A TOOL, IT HELPS, IT CAN CREATE AGENDAS, IT CAN SUMMARIZE, IT'S GREAT FOR SUMMARIZING MEETING MINUTES, YOU KNOW, KIND OF THING.
UM, BUT, BUT YOU START PEELING THE SORT OF THE ONION.
AND WHAT YOU FIND IS THAT THESE MODELS, YOU'RE ABLE TO GO IN AND, AND QUERY IT.
AND LIKE IN THE PHARMACEUTICAL, IN INDUSTRY,
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THEY WANT TO KNOW WHAT IS THE MOST EFFECTIVE MOLECULE TO TREAT MULTIPLE SCLEROSIS OR ANY DISEASE.THEY CAN REVERSE ENGINEER, THEY KNOW THE FEATURES THEY WANT, THEY CAN QUERY IT, THEY CAN, WHAT USED TO BE TAKE MONTHS IF NOT YEARS OF CLINICAL STUDIES TO, TO DEVELOP A MOLECULE, TEST IT THROUGH STUDIES AND HAVE A RESULT THAT WORKS.
IT DOESN'T WORK, YOU KNOW? NOW THEY CAN DO THAT WITH ARTIFICIAL INTELLIGENCE.
SO THEY GET TO GET TO MOST EFFECTIVE MOLECULES REALLY QUICKLY.
AND SO YOU CAN SEE WHY THE COMMERCIAL VALUE, IT'S A HUGE, HUGE BOON FOR HUMANKIND IF IT PLAYS OUT, RIGHT? IT'S JUST SHORT CIRCUITS IT.
THE OTHER EXAMPLE IS WITH MATERIALS.
THEY KNOW THAT CERTAIN, UH, CHEMICAL STRUCTURES, UH, STRUCTURES OF MATERIALS ARE MORE STRONG, STRONG THAN OTHERS.
THEY JUST LITERALLY WAS AN ARTICLE, UM, TO A COUPLE DAYS AGO WHERE THIS TEAM HAS INVENTED A, A MOLECULE THAT IS STRONGER THAN STEEL AND LIGHTER THAN FOAM.
SO YOU'D FAST FORWARD THAT TO OUR MATERIALS DESIGN, YOU KNOW, HOW WE PUT OUR THINGS TOGETHER.
UM, YOU KNOW, AEROSPACE, I MEAN, IT TOUCHES EVERYTHING IN OUR, YOU KNOW, IT'S, IF IT'S, IF THIS CLICKER WERE MADE OUT OF IT, I COULD HUCK IT AT THE WALL AND IT, THIS RIGHT NOW WOULD SHATTER TO PIECES WITH THAT KIND OF TECHNOLOGY, IT WOULD WEIGH LIKE A PENNY.
I PROBABLY COULDN'T EVEN GET IT TO THE WALL, BUT EVEN IF I DID, IT LITERALLY STRONGER THAN STEEL KIND OF THING.
AND I THINK THERE WERE A COUPLE, UM, COUPLE OTHER COOL EXAMPLES THAT I WANTED TO MAKE SURE THAT I HIT HERE FOR YOU.
UM, YEAH, JUST ONE OTHER, UM, THAT'S JUST MORE KIND OF BRINGING IT DOWN TO GETTING REAL.
HOW MANY OF YOU HAVE LIKE SPOTIFY ACCOUNTS, RIGHT? OR PANDORA? YEAH, KIND OF SAME SORT OF THING.
SO YOU MAY HAVE READ LIKE THREE OR FOUR YEARS AGO, SPOTIFY WENT IN AND FOUND OUT THAT 10% OF THEIR ENTIRE CATALOG OF MUSIC BY VOLUME, BY TITLES WAS COMPUTER GENERATED BY, BY A, BY MODELS, SO THEY COULD FEED IN.
AND THERE WAS ANOTHER FAMOUS CASE WITH, I THINK IT WAS DRAKE AND SOMEBODY ELSE, THAT THEY ACTUALLY RELEASED A TUNE THAT SOUNDED LIKE THIS IS DRAKE, AND I CAN'T REMEMBER THE OTHER ARTIST, RIGHT? THE WEEKEND, THANK YOU, DRAKE AND THE WEEKEND, RIGHT? AND IT WAS SPECTACULAR.
AND IT STARTED GOING UP THE CHARTS FOR SPOTIFY UNTIL THEY REALIZED THAT THEY HAD JUST FED IN DRAKE AND WEEKEND'S STUFF INTO A MODEL, AND THE MODEL SPIT OUT SOMETHING THAT SOUNDED CLOSE ENOUGH.
SO YOU CAN SEE WHY HOLLYWOOD, WHY THE SOUND RECORDING INDUSTRY, WHY THESE FOLKS ARE ART ARTISTS ARE REALLY TERRIFIED.
YOU KNOW, WHERE I CAN, IF I WANT TO CREATE SOMETHING THAT'S VERY VAN GOGH, LIKE, YOU KNOW, ALL I GOTTA DO IS PUT IN THE QUERY, RIGHT? YOU KNOW, I WANT, I WANT IRISES, I WANT A POND, I WANT A MOOD, I WANT IT, YOU KNOW, AND, AND BOOM, OUTCOMES THAT, THAT PRODUCT.
NOW, IT'S NOT VAN GOGH, BUT IF YOU WANT TO USE IT IN A COMMERCIAL, YOU KNOW, AND IT'S BASICALLY F NOT FREE, BUT IT'S REALLY CHEAP.
AND SO, YOU KNOW, YOU PUT THESE ARTISTS OUTTA BUSINESS, AND SO IS THAT A WORLD THAT WE WANNA BE IN? WE, SO THESE THINGS, I ONLY SAY THIS BECAUSE THESE HAVE THE ABILITY TO BE REALLY POSITIVES FOR US, BUT ON THE FLIP SIDE, THEY CAN ALSO REALLY AFFECT OUR, YOU KNOW, OUR WORLD, RIGHT? AND THEN TO THE MORE TO THE POINT IS THAT THESE FOLKS THAT RELY ON THESE OCCUPATIONS FOR THEIR LIVELIHOODS NOW, NO LONGER ARE NEEDED, RIGHT? SO THAT IS SORT OF THE, THE, THE, THE DEBATE THAT'S HAPPENING.
AND WHILE I'VE TALKED ABOUT SORT OF ESOTERIC THINGS, SOME OF THESE DO COME TO LAND IN OUR OWN BACKYARD, IN WATER AND WASTEWATER AND GAS.
SO LET ME SHOW YOU AN EXAMPLE.
OKAY? THIS IS, I FORGOT MY TOOLS AGAIN, LOST HIS TOOLS.
SO THIS, THIS NOW IS FIVE OR SIX YEARS OLD,
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RIGHT? SO, AND I, AND YOU, YOU WHAT, WHAT'S BEING, YOU KNOW, YOU MAY HAVE SEEN EXAMPLES LIKE IN THE MILITARY, YOU KNOW, AND A LOT OF THIS STUFF, AND HERE'S THE DARKER SIDE OF SOME OF THESE THINGS, IS THEY HAVE MILITARY APPLICATIONS.THERE'S A REASON WHY PALANTIR STOCK HAS GONE THROUGH THE ROOF FOR THOSE THAT ARE FOLLOWING THAT MEME STOCK, RIGHT? UM, THEY HAVE, YOU KNOW, LOTS OF DIFFERENT USES.
AND SO, YOU KNOW, HOW DO WE LEVERAGE THEM TO OUR ADVANTAGE AND DO IT IN A WAY THAT HELPS US? SO I WANTED TO USE THAT MILITARY EXAMPLE.
THE MILITARY NOW HAS, I CAN'T REMEMBER, THEY HAVE A NAME FOR THEM, BUT IT'S ESSENTIALLY IT.
THEY'RE ROBOT DOGS OR ROBOT, YOU KNOW, SERVICE.
AND SO INSTEAD OF AN INFANTRYMAN HAVING A 90 POUND PACK, HE'S GOT A ROBOT THAT HAULS ALL THAT STUFF ALONGSIDE, RIGHT? SO I MEAN, THINGS LIKE THAT, YOU KNOW, THAT IT, THAT'S A MILITARY APPLICATION, BUT IT HAS DIRECT APPLICATIONS TO WHAT WE DO IN MAINTENANCE.
FOR EXAMPLE, ONE OTHER EXAMPLE ON THIS, ON ROBOTS, I DIDN'T HAVE THE VIDEO, BUT IT'S WORTH NOTING HOW MANY OF YOU HAVE SEEN, UH, AMAZON, RIGHT? HAS THEIR FA AUTOMATED FACTORIES NOW WHERE THEY HAVE THE CHOREOGRAPH ROBOTS, IT'S A FAIRLY SIMPLE MODEL, BUT THEY'RE MOVING SOMETHING FROM BIN A TO SHIPPING POINT B, RIGHT? AND THE ROBOT, ACTUALLY, IT'S IN ITS LITTLE, IT LOOKS LIKE A ZUMBA OR ROOMBA, ZUMBA, ZUMBA'S, A DANCE, A ROOMBA
UH, AND SO THE ROOMBA, YOU KNOW, ESSENTIALLY GOES OVER TO THE BIN WHERE IT'S BEEN PROGRAMMED TO PICK UP THE, THE LETTER OPENER THAT'S BEEN ORDERED BY SOMEBODY TO, AND IT GOES AND DELIVERS IT TO THE SHIPPING AREA WHERE IT'S GONNA BE SENT TO SOMEONE IN POUGHKEEPSIE, RIGHT? AND, AND IT'S A FACTORY FLOOR, AND THESE THINGS ARE LIKE ANTS AND THEY'RE GOING EVERYWHERE.
NOW, THE, IT'S AN ADVERTISEMENT WHO KNOWS HOW GOOFED UP IT REALLY BECOMES WHEN IT DOESN'T WORK, RIGHT? BUT THE POTENTIAL IS THERE.
SO KEEP AN OPEN MIND ON THAT, ON THAT KIND OF STUFF.
SO I WANT TO GET A LITTLE MORE, AND IT'S PROBABLY HARD TO READ ON YOUR, UH, BUT I JUST WANT TO HIT ON A COUPLE THINGS ON HERE.
THERE'S THIS TERM CALLED DIGITAL TRANSFORMATION.
AND IT'S REALLY APPLYING DIGITAL TOOLS TO THE BUSINESSES WE, UH, RUN IN THE UTILITY ARENA.
AND THERE'S A LOT OF ELEMENTS, THINGS LIKE USE OF SENSORS, UH, OFFLINE AND ONLINE, GEOGRAPHIC INFORMATION SYSTEMS, SATELLITES, DRONES, SMART PUMPS AND VALVES.
YOU HAVE A SOPHISTICATED AUTOMATIC METER, UH, READING CAPABILITY.
SO THAT WOULD BE ONE OF THESE ELEMENTS.
UM, SMART VALVES, DEVICE FAILURE, TECH, UH, LEAK DETECTION, CORROSION, SMART METERS, AND SO ON.
CLOUD SERVICES, DATA ANALYTICS.
SO THIS WAS A SURVEY, AN INTERNATIONAL SURVEY OF WHERE 68 INTERNATIONAL UTILITIES FALL IN TERMS OF THEIR USE OF THESE TECHNOLOGIES.
SO WHEN YOU GET TO YOUR STRATEGIC THINKING, AND NOT THAT THESE ARE THE MODEL UTILITIES, YOU KNOW, SOME ARE WAY OUT ON THE CURVE AND PROBABLY FURTHER THAN YOU WANNA BE, AND SOME ARE, YOU KNOW, NOT AS FAR AS YOU WANT TO BE, BUT YOU WANT TO BE THOUGHTFUL ABOUT HOW YOU'RE USING THESE TOOLS IN YOUR UTILITY BECAUSE THEY CAN, THEY CAN BE HELPFUL.
ONE CAUTIONARY PRINCIPLE, ALL OF THESE COME WITH A PRICE TAG.
AND IT'S LIKE FEEDING THE BEAST ONCE, ONCE YOU HAVE THE TECHNOLOGY IN, YOU KNOW, YOU, IT'S GOT, IT'S GOT YOU AND YOU, YOU GOTTA SUPPORT IT.
MONEY, FINANCE PEOPLE, RESOURCES, RIGHT? SO IT CAN SAVE MONEY, BUT IT ALSO IS A LONG-TERM INVESTMENT.
AND A LOT OF THE VENDORS THAT SELL THIS STUFF, THEY'RE MORE THAN HAPPY TO SELL YOU, YOU KNOW, IT'S LIKE THE PRINTER, YOU KNOW, THE PRINTER'S DIRT CHEAP.
IT'S THE IN THAT COSTS YOU, RIGHT? SO YOU, YOU HAVE TO BE REALLY THOUGHTFUL ABOUT YOUR STRATEGIC THINKING ON, ON DIGITAL TRANSFORMATION.
WE COULD TALK, UH, TWO HOURS ON THAT, BUT I WANNA KEEP US MOVING.
SO TECHNOLOGIES ADVANCING RAPIDLY.
UH, UTILITIES GENERALLY ARE NOT EARLY ADOPTERS, BUT THEY ARE MOVING AND SOME FASTER THAN OTHERS.
IT CAN SAVE MONEY, BUT REQUIRES CAREFUL ADOPTION.
UH, IT, IT IS IMPORTANT IF YOU LAUNCH ON THESE INITIATIVES, YOU KNOW, YOU HAVE GO NO GO PROCESSES TO VET, SELECT AND IMPLEMENT.
AND THEN ONE LAST THAT I DIDN'T HAVE SLIDES ON, BUT IT'S WORTH MENTIONING, I'VE WORKED ON A, UH, RESEARCH FOUNDATION PROJECT CALLED FOSTERING INNOVATION IN WATER UTILITIES.
AND THAT ULTIMATELY EVOLVED INTO A SIX OR SIX YEAR EFFORT THROUGH THE FOUNDATION TO BASICALLY LOOK AT HOW DO YOU DRIVE INNOVATION AND WATER UTILITIES, RIGHT? IF YOU THINK OF LIKE THE APPLES OF THE WORLD, THEY LIVE AND DIE BY INNOVATION.
THEY HAVE VERY, VERY SIGNIFICANT, ROBUST, DEDICATED INNOVATION PROGRAMS THAT DRIVE A PRODUCT FROM, UH, FROM THE IDEA TO FRUITION, OR IMPORTANTLY THAT'S FOR THE GOOD IDEAS.
THEY, THEY REALLY QUICKLY KILL A BAD IDEA BECAUSE THE BAD IDEAS FOR APPLE, WE USE UP A LOT OF RESOURCES.
NOW, I WILL SAY THE APPLE CAR DIDN'T
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QUITE FOLLOW THAT, UH, FOLLOW THAT MODEL, RIGHT? BUT, SO THERE'S A WHOLE RANGE OF THINGS YOU CAN DO ON INNOVATION PROGRAMS FROM SIMPLY THE, THE SIMPLEST BEING A SUGGESTION BOX, THE MOST ELABORATE BEING SOMETHING LIKE, UH, JOHNSON AND JOHNSON DOES, OR APPLE DOES, OR THESE BIG PRODUCT ORIENTED, UH, UH, ORGANIZATIONS.SO LET'S TALK ABOUT, UM, SUSTAINABILITY.
I WANT TO HIT ON FOUR AREAS, CLIMATE, ENERGY, WATER, AND WORKFORCE.
SO ON CLIMATE, NOW, THIS IS A VIDEO.
SO THIS IS GONNA SHOW YOU FROM 1980 TO 2022 GLOBAL TEMPERATURES, RIGHT? SO 83, 80, 97, OBVIOUSLY THE MORE ORANGE, THE WARMER TEMPERATURES.
SO NO MATTER WHERE YOU STAND ON THE IDEA OF WHAT'S CAUSING THIS, RIGHT? IT, THAT TO ME IS A DISTRACTION.
THE ISSUE IS HOW DO WE ADAPT AND AS WATER AND ELECTRIC FUNCTIONS, AND ULTIMATELY GAS, RIGHT? NATURAL GAS.
AND THAT'S AN IMPORTANT ONE STRATEGICALLY FOR YOU.
UM, AND SO HOW DO YOU BEST POSITION YOURSELF TO, TO MANAGE THAT? SO, UM, WE KNOW THAT THIS IS GONNA REPRESENT SOME RISKS.
THIS IS THE COST INSURANCE COST OF NATURAL DISASTERS.
SO 37 EVENTS IN, IN 23, UH, OVER IN EACH ONE OF THOSE EVENTS COST MORE THAN A BILLION DOLLARS.
UM, NOW WE'VE GOT SOME INFLATION GOING ON HERE TOO, RIGHT? SO YOU GOTTA KIND OF ADJUST THIS, BUT INSURANCE COMPANIES, YOU KNOW, WHETHER YOU, HOW, HOW YOU CLASSIFY PALISADES OR EATON CANYON, THE FACT IS, IS WE'RE SEEING MORE OF THESE HIGH COSTS.
IT'S IN PART WHY OUR INSURANCE COSTS ARE GOING UP, RIGHT? UM, IN TERMS OF WATER, WE HAVE ESTIMATES IN CALIFORNIA THAT THE AMOUNT OF PRECIPITATION DOESN'T CHANGE DRAMATICALLY, BUT WHETHER IT FALLS AS RAIN OR SNOW DOES, AND, AND WHAT DO WE RELY ON THE SNOW PACK FOR IN THE STATE? YEAH.
FOR SUPPLY, RIGHT? AND SO IF WE'RE NOT KEEPING IT IN THE SNOW PACK, IT'S RUNNING DOWN INTO THE RESERVOIRS, MANY OF THOSE RESERVOIRS ARE RUN FOR FLOOD CONTROL.
IT HAS TO BE RELEASED TO PREPARE FOR THE NEXT STORM.
AND THAT'S WATER THAT'S, YOU KNOW, GOES OUT TO THE OCEAN, RIGHT? SO, UM, WE DO ALSO KNOW THAT THIS INCREASE, UH, DROUGHT SEVERITY, NUMBER OF DRY YEARS, INCREASED EXTREME
ALMOST EVERY ONE OF 'EM HAS A COST, YOU KNOW, AND, AND OF COURSE WHETHER YOU'RE BUILDING A DESAL PLANT OR YOU'RE DOING RECYCLED WATER OR YOU'RE DOING CONSERVATION, WHICH MIGHT BE THE CHEAPEST OPTION, RIGHT? IT ALSO BRINGS WITH YOU THE NOTION THAT IF YOU'RE NOT SELLING WATER, YOU'RE NOT MAKING MONEY.
AND SO THIS TENSION BETWEEN WATER SALES CONSERVATION, HOW LONG YOU CAN PUT OFF AN INVESTMENT IN CAPITAL TO OFFSET THAT REDUCTION IN REVENUES.
AND I'M GONNA TALK A LITTLE BIT MORE, NOT SO MUCH ABOUT CONSERVATION, BUT JUST THE, UM, EFFECT OF WATER SALES ON OUR COLLECTIVE.
OH, AND I JUST WANNA MENTION, AND YOU HAVE SOME PLANS HERE, UH, TO GO FROM 59% TO 7% ON YOUR IMPORTED SUPPLIES AND 7% TO 18% ON RECYCLED WATER, AT LEAST IN TERMS OF, UH, YOU KNOW, THE PAST TODAY AND, AND FUTURE GOALS, WHICH IS REALLY ADMIRABLE.
YOU ALSO HAVE THE REALITY THAT YOU'RE ONE OF THE ORIGINAL INVESTORS IN METROPOLITAN, AND IF MET MOVES TO FIX CHARGES, UH, THEN THIS STRATEGY OF ROLLING OFF MET IS REALLY TRICKY BECAUSE YOU COULD ROLL OFF, NOT TAKE USE OF THE ASSETS, BUT STILL GET THE BILL, RIGHT? IT'S LIKE A MORE HOUSE MORTGAGE.
YOU CAN'T, YOU KNOW, YOU CAN CHOOSE NOT TO RENT OUT THREE OF THE ROOMS, BUT YOU'RE STILL PAYING THE WHOLE MORTGAGE FOR THE FOUR BEDROOM HOUSE KIND OF THING, RIGHT? SO, UM, IT'S IN INTERESTING TENSION HERE.
WHOOPS, OKAY? SEA LEVEL, WE'LL JUST SPEND A MOMENT ON IT.
THIS IS, UH, IT'S ACCELERATING ALONG CALIFORNIA.
THIS IS A MODEL, UH, CURRENT MODEL SHOWING ONE SIX TO THREE ONE BY 2100 AND YOU ADD ON WAVES AND KING TIDES.
YOU'VE GOT THIS POTENTIAL FOR SATING COASTAL GROUNDWATER OR AFFECTING, YOU KNOW, IN COASTAL INFRASTRUCTURE.
YOU GUYS ARE, YOU KNOW, YOU WELL AWARE OF THAT.
THIS IS JUST SHOWING AREAS THAT ARE INUNDATED UNDER THIS, UH, 3.1, UH, FEET BY 2100
[01:55:01]
SEEMS LIKE A LONG WAY AGO, BUT THE LAST 45 YEARS WENT PRETTY QUICK FROM MY PERSPECTIVE.SO YOU WANNA BE THOUGHTFUL ABOUT THAT, OKAY? COUPLE BIG WATER INVESTMENT THINGS ON TAP AND, UH, AND DIRECTOR, UH, CORDERO IS ACUTELY AWARE OF THESE.
YOU'VE GOT, UH, DELTA CONVEYANCE IS A $20 BILLION PRICE TAG.
ROUGHLY HALF OF THAT WOULD BE PAID FOR BY MED.
AND THAT'S AN INVESTMENT THAT'S, YOU KNOW, ONCE THE STUDIES ARE DONE, UH, WILL INVESTMENT DECISION AND YOU'VE GOT LIKE SITES RESERVOIR, ANOTHER SIGNIFICANT ONE.
WE'RE INCREASING THIS REGIONAL INVESTMENT AMIDST DECLINING TO FLAT WATER SALES.
SO LEMME POINT OUT A COUPLE THINGS.
SO THIS IS FROM THE 23, UH, 24, UH, 20, SORRY, 22, 23 AND 23, 24 MET BUDGET.
SO WHAT'S INTERESTING, THIS LINE HERE IS THE MET WATER SALE.
SO IN 2024 WAS PROJECTED AT 1.54, UM, AND THEY'RE PROJECTING 1.57 IN, UM, 2032.
SO PRETTY FLAT WATER SALES, RIGHT? AND IT'S BECAUSE EVERYONE'S DOING A GREAT JOB WITH LOCAL RESOURCE DEVELOPMENT AND CONSERVATION PROGRAMS ARE ALL WORKING.
BUT THINK WHEN YOU THINK ABOUT THE, THE COST PER ACRE FOOT AS A FUNCTION OF HOW MUCH MONEY YOU'RE SPENDING IN THE EN NUMERATOR AND HOW MUCH WATER YOU'RE SELLING IN THE DENOMINATOR, IF YOU DROP THE DENOMINATOR, YOU GOTTA DROP THE NUMERATOR OR THE COST PER ACRE FOOT INEXORABLY, IT GOES UP.
IT'S JUST THE MATH, YOU KNOW, AND IT'S SUCH A TYRANNY BECAUSE WE WANNA DO THE RIGHT THING, BUT WE HAVE THIS ISSUE WITH FINANCIAL, THE SUSTAINABILITY THAT YOU JUST GOTTA THINK ABOUT, RIGHT? UM, IT'S NOT A REASON NOT TO DO IT, BUT YOU GOTTA HAVE A PLAN IN PLACE IF THOSE, IF THOSE COSTS GO UP AND THAT VOLUME STAYS FLAT OR SHRINKS THE COST TO YOUR CUSTOMERS HAS TO GO UP OR YOU GET SOMEONE ELSE TO PAY FOR IT, LIKE THE FEDERAL GOVERNMENT OR THE STATE GOVERNMENT OR SOMEONE ELSE.
I'M BEING A LITTLE CYNICAL, BUT THAT BY AND LARGE IS A HUGE STRATEGY OF UTILITIES, IS TO TRY TO FIND OUTSIDE SOURCES OF FUNDING, RIGHT? UM, YEAH.
OKAY, SO JUST A POINT THERE AND A LITTLE, JUST A LITTLE BIT ON ENERGY.
AND THIS TIES BACK TO TECHNOLOGY.
SO WHAT'S ONE OF THE BIGGEST LIMITATIONS FOR THESE ROBOTS? BATTERIES, RIGHT? BECAUSE THEY TAKE A LOT OF ENERGY AND THEY'VE GOTTA, YOU GOTTA CHANGE 'EM OUT, RIGHT? BUT LOOK, WHAT'S GOING ON WITH LITHIUM ION PRICE WORLDWIDE FROM 2013 TO 2024.
YOU KNOW, IT'S, IT HAS JUST LITERALLY COLLAPSED, WHICH IS A GOOD THING, RIGHT? IT'S GREAT BECAUSE WE CAN DRIVE SOME OF THESE TECHNOLOGIES AND THEN, AND NOT SURPRISINGLY, LOOK AT WHERE THEY'RE GOING WITH BATTERY AND YOU COUPLE BATTERIES WITH SOLAR, YOU KNOW, AND IT CAN BE A PRETTY COST EFFECTIVE KIND OF SOLUTION HERE.
BUT YOU SEE THE PLAN VERSUS ACTUAL OPERATIONAL AND THEN WHAT THEY'RE ESTIMATING HERE COMING ON, THESE ARE SHOWN IN GRAY 'CAUSE THEIR ESTIMATES, THESE ARE ACTUAL, ACTUAL, SO THE, THE WORLD IS CHANGING FOR US ON BATTERIES AND DOING SOME OF THESE ALTERNATIVE ENERGY SCENARIOS, TAKING ADVANTAGE OF THAT MIGHT BE A REAL OPPORTUNITY FOR YOU, RIGHT? UM, OKAY, SO, UM, KEY TAKEAWAYS.
UM, DIVERSIFYING YOUR SUPPLIES IS PROBABLY A SMART THING TO DO.
ALL THINGS CONSIDERED ENERGY DIVERSIFICATION, UH, TAKING ADVANTAGE OF THESE TECHNOLOGY CHANGES.
AND I THINK IMPORTANTLY, KEEPING THOSE COMMUNICATION CHANNELS WIDE OPEN WITH YOUR PUBLIC.
THESE ARE THE GOOD THINGS THAT WE'RE DOING.
AND THESE ARE, YOU KNOW, THESE ARE THE BENEFITS THAT WE'RE ACCRUING.
HERE'S THE VALUE PROPOSITION FOR YOU, YOU AS A RATE PAYER AND, AND, UM, AND OUR COMMITMENT TO, TO REALIZING THIS VALUE ON YOUR BEHALF.
UM, I'LL TALK MORE ABOUT CUSTOMER HERE IN A BIT.
ONE, UH, A THIRD OF THE US DRINKING WATER WASTEWATER OPERATORS ARE ELIGIBLE TO RETIRE BY 2028.
SO YOU OPERATE TREATMENT PLANTS, AND I DON'T KNOW THE SPECIFICS OF YOUR AGE PROFILE AND THAT'S SENSITIVE, OBVIOUSLY, BUT THE US WISE, THIS IS A MAJOR, MAJOR ISSUE.
25% OF THE WORKFORCE IS OVER 55 BY 2025.
1994 WAS 12%, RIGHT? MORE WORKERS IN THEIR SIXTIES AND EIGHTIES ARE WORKING EITHER FULL SIXTIES TO EIGHTIES, ARE WORKING EITHER FULL OR PART-TIME.
UM, INTERESTINGLY, FIVE GENERATIONS IN THE WORKPLACE.
AND THIS IS, THIS GRAPH HERE I THOUGHT WAS FASCINATING.
SO, UM, THESE ARE THE GENERATIONS HERE.
TRADITIONALISTS, BOOMERS, GEN X, GEN Y, GEN Z, RIGHT? AND NOT SURPRISINGLY, BETWEEN 2020 20, YOU SEE A SHIFT, RIGHT? UH, THOSE TRADITIONALISTS ARE RETIRING OUT.
BOOMERS ARE GETTING READY, YOU KNOW, SOME RETIRING OUT AND GEN X AND GEN Y AND GEN Z ARE ALL ASCENDING IN TERMS OF THEIR PERCENTAGE OF THE WORKFORCE.
UNDERSTANDING WHAT MOTIVATES A TRADITIONALIST AND WHAT MOTIVATES A GEN Y OR GEN Z
[02:00:01]
EMPLOYEE IS REALLY IMPORTANT, RIGHT? AND THAT, THAT HAS SHIFTED OVER TIME AND IT, WITHOUT MAKING ANY KIND OF VALUE JUDGMENT ON IT, IF YOU ARE GONNA HAVE A DYNAMIC, VITAL, ENGAGED WORKFORCE, THE UNDERSTANDING WHAT MAKES THEM DYNAMIC, VITAL, AND ENGAGED IS GONNA BE REALLY IMPORTANT AND BEING FLEXIBLE TO, TO PROVIDE THAT, RIGHT? AND OF COURSE, THIS AN INTERESTING THING HERE ON THE BOTTOM, 58% OF HR MANAGERS HAVE REPORTED CONFLICT AND ATTITUDES.ARE THERE ANY GEN ZS IN THE ROOM? OKAY, I CAN'T SAY ANYTHING.
YEAH, YEAH, THERE'RE ALWAYS USUALLY YOU CAN PICK ON SOMEBODY, RIGHT?
UH, BUT THE POINT IS, IS THAT THERE'S, IT'S DIFFERENT.
AND ACKNOWLEDGING THAT, UNDERSTANDING IT AND BUILDING A, A SOLID WORKFORCE, UNDERSTANDING, THAT'LL BE REALLY IMPORTANT.
CONTINUED COMPETITION FOR TALENT.
RIGHT NOW WE'RE JUST STEALING OTHER PE PEOPLE'S PEOPLE FOR THE MOST PART, RIGHT? IS OUR HR MANAGER IN, IN HERE? UH, YEAH, BUT THAT'S A, YEAH.
DIANA, WOULD YOU AGREE WITH IT? TRY NOT TO.
I MEAN, I STEAL FROM OTHER COMPANIES.
PEOPLE GO WHERE THEY FEEL BACK TO THAT OTHER POINT WHERE THEY FEEL THEY HAVE OPPORTUNITY AND ARE APPRECIATED, RIGHT? UH, SO TRAINING, CONTINUED EDUCATION, PREPARING FOR THE FUTURE, ENGAGING ALL YOUR EMPLOYEES AND CREATING AN ENVIRONMENT WHERE GOOD IDEAS BUBBLE UP, RIGHT? AND WHERE YOU'RE, YOU'RE, YOU'RE ACTIVELY HAVING PEOPLE GIVE THEIR BEST IDEA.
AND EVEN IF IT, IT'S A, A BAD IDEA, YOU, YOU ENCOURAGE THE IDEA, YOU KNOW? AND YOU LET 'EM DOWN IF IT'S A GENTLY IF IT'S A BAD IDEA.
BUT WHAT YOU WANT IS THE ONE OUT OF 10.
YOU KNOW, THAT'S A MAGNIFICENT INSIGHT AND IT'S REALLY IMPACTFUL FOR YOU.
SO SYSTEMS TO MAKE SURE THAT THIS, THIS IDEA DOESN'T GET FIRE HOSED AT THE BOTTOM.
'CAUSE SOMETIMES SOMEONE'S, ONE PERSON'S GOOD IDEA IS ANOTHER PERSON'S DISASTER, RIGHT? BECAUSE IT TAKES, IT MAKES THIS PERSON'S JOB A LOT EASIER, BUT MAKES THIS PERSON'S JOB A BIG LIFT, RIGHT? UM, AND SO YOU WANT TO JUST MAKE SURE THAT WHEN YOU MAKE THOSE DECISIONS, YOU'RE VALUING ALL THE PERSPECTIVES AND IT'S DECISION BASED UPON NOT JUST WHAT'S GOOD FOR OPERATIONS, UH, AND BAD FOR FINANCE, BUT IT BA DOES THAT KIND OF BALANCING.
HOW ARE WE DOING HERE? I THINK WE'RE OKAY.
SO I WANTED TO DO THIS BE, UH, ON REGULATIONS.
SO THIS, THIS GETS BACK TO THAT SLIDE ON REGULATIONS AND I WANT TO LAY OUT A COUPLE THINGS.
SO JUST FIRST A TIMELINE, AND I WANNA PUT SOME THINGS ON THERE TO, AND THE POINT THAT THIS IS MAKING IS THAT OUR DETECTION LIMITS ARE GETTING SO DARN LOW AND SO GOOD THAT IT'S OUTSTRIPPING IN SOME CASES OUR ABILITY TO UNDERSTAND THE HEALTH EFFECTS OF THESE THINGS THAT WE'RE REGULATING OR HAVING REGULATED.
SO WHAT WE SEE IS THAT OVER THIS TIMELINE, AND THESE ARE APPROXIMATE, WE WENT FROM IN THE, IN THE SIXTIES WHERE WE WERE REALLY REGULATING AT MILLIGRAM PER LITER LEVELS TO, INTO THE, INTO THE EIGHTIES WHERE WE PUSHED IT DOWN A THOUSAND FOLD MORE, UH, IN TERMS OF OUR SENSITIVITIES INTO THE NINETIES AND, UH, EARLY AUGHTS WHERE WE WENT DOWN A MILLION TIMES MORE SENSITIVE IN TERMS OF REGULATIONS.
AND IN SOME CASES NOW, YOU KNOW, WE'RE AT SUB NANOGRAM PER LITER LEVEL.
SO THE GOOD NEWS IS OUR TECHNOLOGY IS REALLY GOOD AT FINDING MINUTE LEVELS OF THINGS.
UM, AND YOU KNOW, UNFORTUNATELY OUR MODELS FOR DETERMINING HEALTH EFFECTS ARE, ARE STILL BASED IN REALLY A SET OF REGULATORY CONSTRUCTS THAT WERE BACK IN THE, IN THE NINETIES, THE CLEAN WATER ACT IN 63, THE CLEAN, UH, UPDATE TO THE CLEAN WATER IN 72 SAFE DRINKING WATER ACT CAME IN, IN 74 AMENDMENTS TO THOSE SAFE DRINKING WATER ACT IN 86 AND 96.
AND YET, YOU KNOW, THIS JUGGERNAUT OF DETECTION HAS CONTINUED.
THE OTHER THING THAT'S HAPPENED THAT MAKES THIS KIND OF PARTICULARLY TYRANNICAL IS, I MEAN, YOU THINK ABOUT WHERE YOUR PERSONAL TECHNOLOGY HAS GONE IN 40 YEARS, RIGHT? YOU KNOW, FROM, UH, I REMEMBER THE, I'M NOT GONNA DO THAT 'CAUSE I'M DATING MYSELF, BUT IT, IT WAS AFTER APON AT, OKAY, I WILL SAY THAT.
BUT YOU KNOW, WE ENDED UP WITH A SEQUENCE OF THE WORLDWIDE WEB COMING IN IN 89.
NOW WE'RE DEMOCRATIZING INFORMATION, A LOT MORE AVAILABLE BROWSERS WERE INTRODUCED IN AROUND 93.
WE HAVE.COM BOOM AND BUST AROUND 2000 Y 2K.
YOU REMEMBER THAT SOCIAL MEDIA BEGAN TO GET TRACTION IN 2004.
SO NOW I COULD FIND OUT WHAT THE HEALTH EFFECT OF COMPOUND Y WAS FROM MY INSTAGRAM, YOU KNOW, FRIENDS, RIGHT? MOVING FORWARD NOW SMARTPHONES, I DIDN'T HAVE TO SIT AT THE DESKTOP ANYMORE.
NOW I HAVE IT AT MY, YOU KNOW, AT MY, AT MY IN MY POCKET, LITERALLY.
[02:05:01]
NOW WE'RE CONNECTING MUCH, MUCH MORE THINGS.AND WHILE WE HAVE THE ABILITY ON, WE'RE ON THE VERGE OF THIS ABILITY TO ANALYZE REALLY COMPLEX DATA SETS AND FINE TUNE THE, THE OUTPUT FROM THEM TO BE ACTIONABLE AND DO GOOD THINGS.
SO ALONG THIS JOURNEY, WE HAVE GOTTEN MORE SOPHISTICATED ON OUR DETECTION WHERE WE HAVE MADE BECOME MUCH MORE DEMOCRATIZED WITH OUR INFORMATION AVAILABILITY.
AND WE CAN GET GREAT INFORMATION, BUT WE CAN ALSO GET BAD INFORMATION.
AND SO YOU, THE POINT OF THIS IS DON'T SEED YOUR COMMUNICATIONS TO THE INTERNET, RIGHT? AND I KNOW I'M NOT SAYING YOU'RE DOING THAT, BUT IT'S GONNA BE MORE AND MORE IMPORTANT FOR YOU TO BE THE VOICE OF INTERPRETATION AND, AND WORKING CLOSELY WITH YOUR REGULATORS.
'CAUSE THEY'RE ULTIMATELY THE AUTHORITIES ON THINGS.
BUT HAVING THAT SOLID RELATIONSHIP AND BEING VIEWED AND TRUSTED BY YOUR CUSTOMERS.
SO IF YOU SAY, LOOK, WE'RE, HERE'S SOMEBODY YOU CAN TALK TO ABOUT IT WITH THE HEALTH AUTHORITIES AND, YOU KNOW, BUT YOU DON'T HAVE TO HAVE THE ANSWERS.
AND SOMETIMES YOU DON'T WANT TO HAVE THE ANSWERS, BUT YOU NEED TO BE A GOOD TRUSTED CONNECTOR FOR THEM, RIGHT? OKAY.
UM, JUST A ONE QUICK ONE ON OCEAN DISCHARGE.
SO THIS, WHILE YOU HAVE A COLLECTION SYSTEM AND THE WATER, UH, WASTEWATER GOES TO, UM, LA COUNTY SAND DISTRICT AND THEY TREAT IT, AND, AND ULTIMATELY SOME OF IT GETS DISCHARGED TO THE OCEANS, BUT THIS WAS AN APRIL 8TH, 2024 LETTER FROM, UM, REALLY ALL OF THE MAJOR ENVIRONMENTAL FIRMS, UH, NGOS IN, UH, CALIFORNIA TO THE GOVERNOR.
SO BASICALLY GOING AFTER COASTAL SEWAGE TREATMENT DISCHARGES AND LINKING IT TO OCEAN ACIDIFICATION AND THE LOSS OF OXYGEN.
SO THERE'S A LOT OF NUANCES ABOUT THAT ASSERTION.
UM, AND SCORP, WHO'S THIS RESEARCH GROUP THAT COMPRISES ALL THE PO TWS, THE WASTEWATER PLANTS DISCHARGING IN THE OCEAN ARE VEHEMENTLY ENGAGED IN THIS AND UPSET ABOUT IT, BUT THERE'S PRESSING TO DO SOMETHING ON DISCHARGE INTO THE OCEAN.
UM, UM, UH, LEGISLATOR HERTZBERG HAD A BILL SOME 10 YEARS AGO, I THINK, BANNING OCEAN DISCHARGE AND IT WAS FLOATED.
BUT THERE'S A SENTIMENT OUT THERE TO DO THAT.
AND MY ONLY POINT HERE IS THAT KEEPING YOUR EYE ON THE LONG BALL WITH REGARD TO WHERE REGULATIONS ARE GOING, YOU HAVE STATE AND FEDERAL LOBBYISTS THAT ARE ON THIS.
YOU KNOW, THESE ARE FLAGS FOR YOU AND IRRESPECTIVE OF THE PUBLIC MERIT OF THAT REGULATION OR NOT, IT ALL COMES BACK TO ROOST AT THE DIS THE, THE PRODUCERS OF WASTEWATER.
UM, THERE WAS ACTUALLY JUST A BILL.
WELL, THERE'S BEEN REPEATED EFFORTS TO MAKE SURE THAT THE LIABILITY FOR THINGS LIKE PFOS FALL ON THE IN INDUSTRY AND NOT ON THE PO TWS OR THE WATER UTILITIES AND THE, LIKE, THEY'RE JUST CONVEYORS OF SOMETHING THAT WAS PUT IN ULTIMATELY.
BUT KEEPING AN EYE ON THIS AND HAVING GOOD, GOOD VISIBILITY IS GOOD.
UM, THIS IS THIS ONE, THIS ONE I THINK IS, IS REALLY GONNA BE AN ISSUE.
UM, MAINLY BECAUSE IT'S BEING REGULATED AT VERY, VERY LOW LEVELS.
THIS IS FOR, UH, PFAS, UM, AND YOU CAN SEE THESE ARE NANOGRAM PER LITER LEVELS, 0.0009.
SO I COULD GO TO THAT GRAPH AND NOW YOU'RE TALKING ABOUT A MILLION TIMES MORE, YOU KNOW, NOT A MILLION, BUT A THOUSAND TIMES EVEN MORE SENSITIVE AND LEVELS THAT THEY'RE LOOKING AT.
AND THIS IS FOR BIOSOLIDS, YOU KNOW, AND, AND BASICALLY THE BIG ISSUE IS RIGHT NOW, A LOT OF BIOSOLIDS ARE LAND APPLIED FOR CROP GROWING OF, OF FODDER CROPS FOR ANIMALS AND THE LYR.
AND IF THIS HITS TO BIOSOLIDS APPLICATION ON FARMS AND THAT CAN'T BE DONE FOR WHATEVER REASON, YOU KNOW, THE, THE HEALTH EFFECTS CONCERNS, THEN YOU'RE LOOKING AT PROBABLY PARALYSIS, WHICH IS JUST BURNING IT UP, YOU KNOW? SO NOW YOU'VE GOT A BIG ENERGY EFFECT.
YOU KNOW, I DID WORKED ON GRANULAR ACTIVATED CARBON IN THE EIGHTIES CITING, UH, FURNACES IN SOUTHERN CALIFORNIA.
AND IT WASN'T POSSIBLE BECAUSE OF THE, UH, AIR RESOURCES BOARD CONSTRAINTS AND EMISSIONS AND THE LIKE, LET ALONE NIMBY KIND OF STUFF.
WE DIDN'T EVEN GET TO THE MVP OF IT.
UM, SO JUST AGAIN, SOMETHING TO REALLY KEEP AN EYE ON.
THIS ONE IS SO DYNAMIC AS I PULLED THIS ONE OFF.
THIS WAS THE ELECTRIC VEHICLE VEHICLE ELECTRIFICATION, CALIFORNIA MOVING AGGRESSIVELY IN THAT REGARD.
BUT LITERALLY FRI LAST FRIDAY, I HAD THESE SLIDES ALREADY TO GO.
AND NOT EVEN READING THE NEWS, I WAS LIKE, AH, I GOTTA MODIFY THAT ONE.
BUT THE LAST ONE WAS HERE, EPA SUBMITTED, UH, THE WAIVER, UH, TO CONGRESS FOR CONSIDERATION UNDER THE CONGRESSIONAL RE REVIEW ACT, WHICH WOULD ESSENTIALLY OVERTURN CALIFORNIA'S ELECTRIFICATION MANDATE.
SO, UM, THIS STUFF JUST A GREAT EXAMPLE OF HOW DYNAMIC IT IS AND HOW WISE YOU ARE TO HAVE FOLKS KEEPING AN EYE ON THIS STUFF, BECAUSE THESE ARE BIG INVESTMENT DECISIONS, RIGHT? EITHER WAY, AND YOU DON'T WANNA HAVE A STRANDED ASSET KIND OF GOING, OKAY? SO REGS, UH, FEDERAL PACE LIKELY TO SLOW.
I THINK THAT'S PROBABLY SAFE TO ASSUME YOUR
[02:10:01]
FEDERAL LOBBYISTS CAN AND, UH, CAN CHALLENGE ME ON THAT.CALIFORNIA REGULATIONS ARE GENERALLY MORE STRICT THAN JUST A DIFFERENT CONSTRUCT.
AND SO THEY'RE GONNA BE OVERARCHING, YOU KNOW, OVERRIDING HERE.
UM, THE FEDS, YEAH, ENOUGH SAID THERE, UM, THESE REGULATORY INITIATIVES COULD AFFECT WATER VIGILANCE IS WARRANTED.
UM, THERE COULD BE POTENTIAL FOR REALLY SIGNIFICANT DISRUPTIONS IN TERMS OF HOW WE HANDLE WASTEWATER.
UM, AND, AND AGAIN, IMPORTANCE OF COMMUNICATION AND, UH, AND COMMUNICATING THAT WITH YOUR, UH, WITH YOUR CUSTOMERS.
OKAY, SO NOW WE'VE GOT, YOU KNOW, WE TALKED ABOUT INFRASTRUCTURE, WORKFORCE REGS, WE TALKED ABOUT TECHNOLOGY, THIS TRUST IN GOVERNMENT.
THIS ONE IS ONE I TRACK TRACED FOR A NUMBER OF YEARS AND IT EBBS AND FLOWS, BUT THIS IS OUR KIND OF GENERAL TREND IN 2020.
UH, THESE ARE THE, THE ADMINISTRATIONS IN 2020, YOU KNOW, SO WE'RE OUT HERE ACTUALLY REMARKABLY, UM, YOU KNOW, THE, AND THIS IS A RESULT OF MOVING AVERAGE AND THEN INDIVIDUAL POLES.
SO THE MOVING AVERAGE IS IN THE DARKER COLOR.
MY ONLY POINT REALLY HERE IS THAT, YOU KNOW, YOU HAVE SOMEWHERE AROUND 30% OF FOLKS, YOU KNOW, DOWN HERE THAT HAVE A HIGH LEVEL OF TRUST, AT LEAST AT THE HIGHEST LEVELS OF GOVERNMENT, RIGHT? AND SO WHAT THE, WHAT THE POLLING INFORMATION SHOWS IS THAT THE LOWER YOU GO DOWN THAT GOVERNMENT CHAIN, FEDERAL TO STATE, TO LOCAL, REGIONAL TO LOCAL, THE TRUST RISES.
SO YOU ARE POSITIONED BEAUTIFULLY AND YOU'VE GOT, BASED UPON YOUR SURVEY INFORMATION, YOU KNOW, YOU'RE POSITIONED BEAUTIFULLY TO BE A VOICE, YOU KNOW, UH, AND A TRUSTED VOICE IN YOUR COMMUNICATION.
SO, BUT THIS IS SOMETHING THAT THERE'S A LOT OF FOLKS THAT ARE VERY, UM, VERY CYNICAL ABOUT IT.
IT'S AT HIS NEAR HISTORIC LOWS, OKAY? SO BE EXEMPLARY.
UH, I ALWAYS LIKE THIS IDEA OF, YOU KNOW, 99% OF THE TIME YOU'RE IN THE MODE OF BUILDING A RESERVOIR OF TRUST, RIGHT? YOU'RE DOING YOUR THING, YOU'RE DOING THE HEAVY LIFTING, LIFTING WATERS AVAILABLE, AND IT'S REASONABLE AND IT'S SAFE.
UM, AND IN TAKING CREDIT FOR THAT, UH, CONSISTENTLY CELEBRATING YOUR ACCOMPLISHMENTS, YOU KNOW, BEING YOUR BONE BEST CHEERLEADER.
SOMETIMES WE'RE WAY TOO HUMBLE IN OUR WATER BUSINESS.
UH, AND I'M NOT SAYING YOU AREN'T OR AREN'T, BUT JUST IN GENERAL, IT'S IMPORTANT TO BE CONTINUALLY TAKING, UH, CREDIT, SHOUTING THOSE WINDS FROM THE ROOFTOPS BECAUSE YOU'RE GONNA GET A LOT OF NOISE WHEN THINGS AREN'T SO GOOD, YOU KNOW, AND NOT ENOUGH CREDIT WHEN THINGS ARE GOOD.
SO THIS RESERVOIR OF TRUST IS DONE BY CELEBRATING YOUR ACCOMPLISHMENTS.
UM, I DID A PROJECT OR THE RESEARCH FOUNDATION, UM, CALLED COMMUNICATING THE VALUE OF WATER.
AND AS PART OF THAT PROJECT, THERE WAS A, UH, UH, WE COMPILED SURVEY INFORMATION FROM NORTH AMERICA, FROM, UH, THE US AND CANADA.
AND IT WAS ABOUT, AS I RECALL, ABOUT 5,500 INDIVIDUAL SURVEYS THAT WERE DONE, DIFFERENT MULTIPLE STUDIES AND PILED, COMPILED TOGETHER.
AND THERE ARE REALLY FOUR THINGS THAT CUSTOMERS WANT.
AND I HAVE ACTUALLY, UM, WE'LL TALK ABOUT THOSE.
THERE'S ACTUALLY MORE HERE, THIS IS FROM ANOTHER ONE.
BUT THAT SURVEY BASICALLY SAID THAT THEY WANT CLEAN WATER.
NOT SURPRISING, RIGHT? SAFE WATER.
THEY WANTED ADEQUATE, UM, VOLUMES OF IT.
SO THEY WANTED IT FLOWING OUT OF THE TAP.
WHEN THEY TURNED THE TAP ON, THEY WANTED FAIR AND ACCURATE BILLS.
SO FAIR IS A SUBJECTIVE TERM, YOU KNOW, IF I DON'T, IT'S TOO HIGH.
I DON'T THINK IT'S FAIR, YOU KNOW, BUT FAIR AND ACCURATE BILLS.
AND THE FOURTH WAS THEY WANTED, UM, A RESPONSE WHEN THEY HAD A QUESTION.
AND THIS IS A VARIATION ON THAT.
UM, SO CUST FOCUS ON CUSTOMERS' NEEDS, UM, YOU KNOW, HAVING GOOD EARS TO THE GROUND ON WHAT'S IMPORTANT TO FOLKS, UH, COURTESY AND RESPECTS, UH, RESPECT.
THIS ONE, UH, SHOULD BE A SEPARATE BULLET.
SO THEY USED AN EXAMPLE OF, YOU KNOW, WHEN YOU'RE INTERACTING WITH THEM, DON'T USE THEIR PERSONAL NAME, YOU KNOW, IT'S MRS. SMITH OR MR. JONES, OR, YOU KNOW, IT'S NOT, YOU KNOW, SO BE THAT COURTESY AND RESPECT, HAVING KNOWLEDGEABLE REPS WHO ALSO DO, DON'T PRETEND TO KNOW SOMETHING.
HERE'S AN INTERSECTION WITH AI.
SO WHAT'S ONE OF THE BIGGEST USES OF AI IN THE CORPORATE WORLD TODAY? CALL CENTERS.
HOW MANY OF YOU HAVE BEEN STUCK TRYING TO GET AN ANSWER FROM SOME, SOME VENDOR THAT YOU BOUGHT SOMETHING FROM AND, YOU KNOW, YOU'RE ABOUT THE NINTH DRILL DOWN AND THEN YOU'RE CUT OFF OR SOMETHING? I, YOU KNOW, I'M EXAGGERATING.
IT IS THE MOST FRUSTRATING THING.
SO IT GETS BACK TO WHAT I POINTED OUT ABOUT WHEN YOU GO THE ROUTE OF TECHNOLOGY, THEY'RE, THEY'RE PERFECTLY GOOD AS LONG AS YOU DON'T DIMINISH THE CUSTOMER EXPERIENCE.
IF THEY NEED TO GET TO A PERSON, LET 'EM GET TO A PERSON QUICK.
YOU KNOW, SOME PEOPLE ARE FINE WITH PUNCHING THROUGH, YOU KNOW, THREE OR FOUR DRILL DOWN MENUS TO DO IT.
MAYBE THEY EVEN PREFER THAT, BUT KEEP THAT IN MIND.
[02:15:01]
UH, COMPLETE RESTORATION OF PROPERTY WHEN ANY ONSITE WORK IS DONE, AND BEING ABLE TO SPEAK WITH A LIVE PERSON.ONE OTHER POINT ON THIS, AND I THINK WE'RE STILL, STILL, I'M GONNA YEAH, GET WRAP UP HERE VERY SHORTLY.
UM, UM, ONE OTHER POINT ON THIS IS THAT SOMETIMES YOUR BEST EMISSARY IS NOT YOU AS A COMMISSIONER OR A GENERAL MANAGER OR A SENIOR MANAGER.
IT'S THE PERSON ON THE UTILITY CREW THAT'S IN THE STREET DIGGING THE TRENCH.
BECAUSE IF YOU CAN EMPOWER THOSE PEOPLE, THEY'RE NOT MAYBE THE, THE, MAYBE THEY'RE NOT THE, THE MOST ARTICULATE SPOKESPERSON FOR YOU, BUT THEY'RE THERE MAKING THE LIFE BETTER FOR THOSE CITIZENS.
AND THAT MATTERS A LOT, YOU KNOW? AND SO THEY, YOU'RE NOT ASKING THEM TO ANSWER ANY TOUGH TECHNICAL QUESTIONS, BUT HAVING THEM EQUIPPED TO SAY, HEY, UH, THEY'RE, YOU KNOW, THEY'RE GOING, HEY, YOU'RE BLOCKING MY DRIVEWAY.
WELL, YOU KNOW, OKAY, LET ME, WE'LL, WE'LL, WE'LL SORT THAT OUT.
I JUST WANNA LET YOU KNOW WE'RE REPLACING THIS LINE BECAUSE OF BLAH, BLAH, BLAH, BLAH, BLAH.
IT'S PART OF OUR PROGRAM TO ENSURE GOOD QUALITY WATER FOR THE CITIZENS OF LONG BEACH.
'CAUSE OTHERWISE, THE ONLY OTHER TIME YOU TOUCH THEM IS WHEN YEAH.
AND THAT'S NOT A TEACHABLE MOMENT.
UM, AND YOU'VE DONE, YOU'VE DONE SOME REALLY GOOD, YOUR TOP, YOUR SURVEY STUFF, TOP 10 IN CUSTOMER SATISFACTION, UH, FOR MID-SIZE, UH, UTILITIES.
UM, YOU KNOW, THIS, UH, AND THIS WERE JUST SOME OF THE RESULTS OF THAT.
SO IT WAS MAINLY JUST TO SAY, YOU KNOW, KEEP ON KEEPING ON YOUR, UH, DOING SOME, DOING SOME VERY GOOD STUFF THERE.
SO, UH, TAKEAWAYS HERE, UM, CUSTOMERS WILL CONTINUE TO TAKE WATER FOR GRANTED.
THEY, AS LONG AS I'VE BEEN IN THE BUSINESS, THEY HAVE, THEY HAVE LIVES TO LEAD.
THEY JUST, AGAIN, WANT QUANTITY, QUALITY, YOU KNOW, AND, AND SERVICE KIND OF THING.
SO YOU DO YOUR JOB, UM, LET THEM TAKE IT FOR GRANTED, BUT DO CONTINUE TO BE VOCAL OUT THERE WITH CONSISTENT, SIMPLE MESSAGES AND RECOGNIZING THAT THE CUSTOMERS ARE GETTING THEIR INFORMATION THROUGH A LOT OF DIFFERENT CHANNELS, WHICH YOU, YOU DO, YOU UNDERSTAND, AND YOU DO, UM, USE THE WORKFORCE TO COMMUNICATE.
AND, UM, AND, AND, AND DRIVE THIS CUSTOMER SERVICE ETHIC THROUGHOUT THE ORGANIZATION.
SO IT'S NOT JUST YOUR FOLKS THAT ARE CUSTOMER FACING THAT HA THAT HAVE THIS DIRECT NARROW RESPONSE, BUT IT'S ALL OF YOU AS STAFF AND BOARD MEMBERS THAT, YOU KNOW, YOU'RE, YOU ARE THERE PRIMARILY TO IMPROVE THE QUALITY OF LIFE TO THIS CITIZENRY THAT YOU SERVE.
AND I KNOW THAT'S DRIVEN ALL OF YOUR KIND OF DECISIONS, BUT IN ORDER TO DO THAT, YOU, YOU NEED EFFECTIVENESS AS A TEAM, BOTH MANAGERIAL AND BOARD EFFECTIVENESS, ACROSS DEPARTMENTS, ACROSS DIVISIONS, ACROSS GROUPS THAT WORK IN THE STREET BETWEEN PROCUREMENT AND OPERATIONS, BETWEEN THE WAREHOUSE AND THAT CUSTOMER SERVICE ATTITUDE.
DRIVE THAT, BECAUSE THAT'S WHAT'S GONNA POSITION YOU TO HAVE GOOD VISIBILITY FOR THESE TRENDS THAT ARE GOING ON AND, AND BUILD THE RELATIONSHIPS WITHIN YOUR ORGANIZATION THAT'S JUST GONNA FOSTER EXCELLENCE.
LAST ONE I THINK IS AFFORDABILITY.
UH, OKAY, SO THREE BIG DRIVERS.
I HIT SOME OF THIS UPFRONT INFLATION AND CIP COSTS, COST OF WATER AFFORDABILITY, UM, JUST SO YOU CAN KIND OF SEE THE, SEE THE PAIN THAT WE'VE ALL SORT OF BEEN FEELING.
THIS IS WATER, SEWER AND TRASH COLLECTION ESCALATION FROM A, FROM A ZERO, WHAT'S ZEROED OUT IN 1998 AND WHAT'S GONE ON WITH, UH, WATER, SEWER, AND TRASH.
THEY DIDN'T HAVE IT FOR JUST WATER AND SEWER, BUT YOU CAN SEE FOR ALL ITEMS, INFLATION HAS JUST ALMOST, UM, YOU KNOW, DOUBLED.
SO IT'S JUST SHY OF 200 HERE AND IT FROM 100.
SO IT'S ABOUT DOUBLED FROM 98 TO 2024.
IT'S TRIPLED FOR WATER AND WASTEWATER AND TRASH.
SO AS WE'RE SEEING IT IN OUR WATER RATES IN INEXORABLY FOR WATER, THE BIG COSTS FOR US, SETTING ASIDE CAPITAL EXPENDITURES ARE LABOR.
RIGHT? AND THEN WHAT, WHAT'S THE SECOND ONE? USUALLY BEHIND THAT EN ENERGY, RIGHT? AND SO WE KNOW, ARE YOU, OR YOU'RE IN EDISON SERVICE AREA, RIGHT? YEAH.
THEY'VE BEEN ABOUT 7% A YEAR AS FAR AS THE EYE CAN SEE FORWARD AND BACKWARD, RIGHT? SO IT'S GONNA CONTINUE TO, IF YOU'RE PUMPING WATER AND 19% OF CALIFORNIA'S ENERGY USE IS MOVING WATER AND WASTEWATER.
SO IT'S A BIG CHUNK OF THE STATE'S, UH, BURDEN, UH, ELECTRICITY BURDEN.
UM, OUR RATES HERE IN CALIFORNIA, NATIONAL AVERAGE VERSUS SAN DIEGO, THEY'VE REALLY GOTTEN POUNDED THERE.
AND THEN OF COURSE, WHEN THEY'RE LOOKING AT THINGS LIKE DESAL AND EVEN PURIFIED WATER, THESE KINDS OF RATE INCREASES ARE HUGE COST DRIVERS FOR THEIR, FOR THEIR, UH, ESCALATION ON THEIR RATES.
ONE BIT OF INFORMATION, UH, FROM METROPOLITAN.
[02:20:01]
POINT OUT.SO THIS IS FROM 23 TO PROJECTED 34, ESSENTIALLY FLAT ON THE WATER RATE SIDE WATER SALES SIDE.
UM, IF YOU LOOK AT RATES AND CHARGES, UH, UH, THIS IS THE PROJECTED RATE INCREASES FROM 23, UH, TWO 11.5% INCREASES IN 27 28, AND THEN TAILING OFF TO 4% IN 2034.
SO THAT'S WHOLESALE, THAT'S GONNA COME TO YOU.
AND THERE WON'T, THESE WON'T BE THE NUMBERS ULTIMATELY.
'CAUSE THERE'S ALWAYS THE HORSE TRADING THAT GOES ON AND SETTING 'EM.
BUT THOSE WILL PASS DOWN TO YOU, AND THEN YOU'LL HAVE YOUR OWN COSTS THAT GO.
SO, YOU KNOW, WE'RE SETTING UP A DYNAMIC WHERE COMMUNICATING WITH THE PUBLIC'S GONNA BE REALLY IMPORTANT BECAUSE, YOU KNOW, THESE THINGS ARE, THEY'RE, THEY'RE COMING DOWN THE PIPE.
UM, AND, AND, AND LASTLY, AND THIS IS IMPORTANT.
AN UPDATE SO THAT PEOPLE UNDERSTAND THE SOUTHERN IMPORTANT ASPECTS.
SO THAT WAS AN ASSUMPTION OF FLAT WATER SALES AND METROPOLITAN IN FISCAL YEAR 25 AND 26 IS ALREADY EXPERIENCING ABOUT 1.1 MILLION ACRE FEET IN SALES, UH, WHICH IS THROWING THEM OFF ON THEIR BUDGET ESTIMATES.
THAT'S CAUSING THEM TO NOW CONSIDER THAT THOSE 11.5% RATE INCREASES ARE ACTUALLY GONNA TRIGGER AN ADDITIONAL 3% ON TOP OF THOSE.
AND THEN IT PUTS EVEN MORE INTO QUESTION WHETHER THEY CAN STABILIZE BACK AT FIVE AND FOUR, BECAUSE THE SALES PR, THE SALES ACTUALS DOES NOT EVEN SEEM TO MATCH THE FLAT SALES THAT THEY'VE BEEN TRYING TO HOLD TO.
SO IT'S A, IT'S AN IMPORTANT UTILITY LEARNING LESSON, THIS ASPECT OF TRYING TO CONSTANTLY BEING, ADAPTING AND BEING FLEXIBLE WITH WHAT YOU'RE DOING.
SO TAKE THIS BACK 30 YEARS BEFORE, SOLD 2.5 MILLION ACRE FEET OF WATER, 2.5 MILLION ACRE FEET.
AND WE'RE, UH, THEY'RE PROJECTED ONE, ONE FOR THIS.
SO YOU CAN SEE THAT WE'VE DONE A FABULOUS JOB AT DRIVING THOSE COSTS DOWN.
IT'S REALLY TO BE, NOT COST, BUT THOSE, YOU KNOW, WA THAT WATER USE DOWN, RIGHT? SO THAT'S REALLY TO BE CELEBRATED.
AGAIN, THE TYRANNY OF NUMERATOR DENOMINATOR STUFF, UNLESS THE NUMERATOR, THE MONEY DROPS, IF THAT DENOMINATOR GOES DOWN, THAT PUSHES UPWARD PRESSURE ON IT.
UM, AND THEN LASTLY, THE, THE WIND WE HAVE BEHIND OUR BACKS IN TERMS OF LOCAL RESOURCE DEVELOPMENT, THIS IS A FULL SERVICE UNTREATED VOLUME METRIC COST PROJECTED FOR MET.
SO, YOU KNOW, WE'RE OUT HERE IN, UH, A SHORT NINE YEARS AT ALMOST $1,700 AN ACRE FOOT.
SO IF, YOU KNOW, WHEN YOU DO LOCAL RESOURCE DEVELOPMENT, WHICH YOU OFTEN LOOK AT AS WHAT THAT CROSSOVER POINT IS BETWEEN YOUR LOCAL INVESTMENT AND WHEN IT'LL PAY OFF WITH MET RATES, THE GOOD NEWS IS, IS THAT THESE RATES KEEP GOING UP, THEN IT MAKES A LOT MORE LOCAL RESOURCES VIABLE.
THE BAD NEWS IS, IS THAT IF YOU BUILD MORE LOCAL RESOURCES, THIS NUMBER GOES DOWN.
YOU KNOW, AND AS LONG AS MET IS RECOVERING MONEY ON THE VARIABLE, THE, ON THE VOL, ON THE VOLUME SALES, YOU CAN CUT YOUR COSTS.
IF THEY MOVE TO FIXED CHARGES, YOU CAN'T ESCAPE THEM.
YOU KNOW? SO IT'S, IT'S A DYNAMIC AND IT'S A TOUGH, IT'S A TOUGH PLANNING NUT TO CRACK, BUT IT'S A PRACTICAL REALITY.
AND THEN THE KIND OF THE, THE BOTTOM LINE HERE IS, YOU KNOW, WE'RE REALLY TRYING TO MANAGE THESE RATES SO THAT THE, THE MOST VULNERABLE AMONG US AREN'T COMPLETELY WHACKED BY THESE, BY THESE RATES.
AND THIS IS RECENT FOR, THIS IS FROM THE, UH, 2024 EPA, UM, WATER AFFORDABILITY NEEDS ASSESSMENT.
AND WHAT THEY DO HERE IS THEY ESSENTIALLY ESTIMATE THE PERCENT OF HOUSEHOLDS WITH UNAFFORDABLE BILLS.
AND THEY ASSUME THAT IF YOU'RE PAYING MORE THAN 4.5% OF, OF YOUR MEDIAN HOUSEHOLD INCOME ON WATER WASTEWATER, IT'S UNAFFORDABLE.
THAT'S ESSENTIALLY, AND WHAT THE COLORS, THE DARKER THE COLOR IS, THE DARKEST COLOR IS 30 TO 45%.
SO THERE ARE SOME AREAS, I'M NOT SURE THIS IS SOUTH DAKOTA, I THINK MAYBE, UM, AND IN NEW MEXICO FOR SURE, A COUPLE AREAS OVER HERE IN CALIFORNIA WHERE THERE'S A HUGE PERCENTAGE OF THE FOLKS THAT ARE RIGHT ON THE BUBBLE RIGHT NOW, LONG BEACH COMES IN THIS, UH, UH, I THINK IT'S, LET ME, I THINK IT'S 15 TO 20%, UM, OR SO OF THE HOUSEHOLDS, RIGHT? SO, AND YOU KNOW, THAT, UM, AND, AND, BUT THESE FOLKS, AS YOU MOVE TO ADJUST WATER RATES TO CONSIDER ALL OF THESE EXTERNALITIES, YOU KNOW, YOU GOTTA BE EXTRA SENSITIVE TO THE IMPACT TO THESE, UM, THESE FOLK.
I JUST WANT TO DOUBLE CHECK THAT.
LONG BEACH NUMBER, 10 TO 15% FOR LONG BEACH.
SO, UM, SOMETHING JUST TO KEEP AN EYE ON AS YOU SET RATES THAT YOU'RE NOT PUSHING THE UNAFFORDABILITY ISSUE FOR WATER AND WASTEWATER, UM, AND JUST SOME MEDIAN HOUSEHOLD INCOME NUMBERS.
SO MANY, IF NOT MOST OF THESE COSTS AREN'T IN OUR CONTROL.
[02:25:01]
AN IMPORTANT MESSAGE FOR CONSUMERS, RIGHT? I MEAN, WE, WE'RE FORCED TO DEAL WITH THEM.WHAT'S IMPORTANT, I THINK, IN THAT MESSAGE IS YOU PLAY THE VALUE PROPOSITION OF THE SERVICE THAT YOU PROVIDE, THAT PEOPLE REALLY VALUE.
AGAIN, IT GETS BACK TO THE MESSAGING AND HITTING THAT HOME.
SO WE'RE DOING, WE HAVE THESE OTHER PROGRAMS WHERE WE'RE BEING MORE EFFECTIVE OR BEING MORE EFFICIENT.
WE'RE MANAGING, YOU KNOW, THOSE COSTS WHERE WE CAN, THESE ARE ONES THAT WE HAVE NO CONTROL OVER.
UM, AND SHORT OF, OF AFFECTING SERVICE, WE, WE HAVE TO PASS THOSE ALONG.
IT'LL BE AFFORDABILITY, IT'LL BE A MAJOR CONSIDERATION.
AND MANAGING RATES, UH, LEGAL SYSTEMS THAT WILL ALLOW SUBSIDIES TO OCCUR, UM, YOU KNOW, TO HELP FOLKS THAT ARE IN THE BUBBLE ARE PROBABLY GONNA BE SOME THE POINT OF CONVERSATION IN THE UTILITY INDUSTRY MORE IT IS NOW.
AND IT'LL BE MORE, MORE AND MORE IMPORTANT, UM, CONTROL THOSE COSTS.
YOU CAN COMMUNICATE THE WINS AND BE PREPARED TO EXPLAIN THOSE.
SO, SO THAT IS, UM, THAT, LET ME GO BACK HERE.
SO, UH, THAT'S JUST A SUMMARY OF KIND OF MAJOR DRIVERS AS YOU, AS YOUR STRATEGIC THINKING PROCEEDS, UM, YOU KNOW, AND AS BOTH YOU AND YOUR STAFF ENGAGE IN THAT, THESE ARE KIND OF THINGS, AGAIN, THIS IS WHERE THE PUCK MAY BE GOING, AND YOU NEED TO THINK ABOUT HOW DO YOU BE EFFECTIVE WHEN THAT PUCK GETS TO THAT POINT, SO YOU CAN BE THE WAYNE GRETZKY THAT HITS THE GOAL.
SO I'D LIKE TO, ANY QUESTIONS, BUT THEN TURN IT TO ANNA TO, TO TALK ABOUT, UH, SOME OF YOUR UPCOMING MAJOR POLICY DECISIONS, UH, MADAM CHAIR, AND ANY, ANY QUESTIONS HERE, AUDIENCE OR FROM COMMISSIONERS? OKAY.
LOOKS LIKE WE'RE TURNING, TURNING IT OVER TO ANNA TOLL THEN.
SO I'VE, I'VE SHARED HERE SOME OF THESE ASPECTS, UH, AND CONVERSATIONS WITH STAFF AS WELL.
AND I THINK THAT YOU'RE AWARE OF THE ISSUES IN ONE FORM OR ANOTHER.
UM, I SAID AT THE BEGINNING THAT THE POINT OF THE INFORMATION SESSION WAS TO PROVIDE A BODY OF KNOWLEDGE THAT GROUNDS US ALL TOGETHER.
I THINK IN THE PRESENTATION THAT ED BROUGHT FORTH, YOU SAW THIS EMPHASIS ON INFRASTRUCTURE, AND THAT INFRASTRUCTURE IS IMPORTANT.
UH, IT'S THE PART AND PARCEL OF THE LIFE OF THE UTILITY AND HOW IT PROVIDES SERVICE TO THE CUSTOMER.
UH, I WOULD SAY IT'S IMPORTANT TO UNDERSTAND THAT WHEN WE THINK OF INFRASTRUCTURE, INFRASTRUCTURE IS THE ENTIRE SYSTEM THAT DELIVERS WATER.
AND IN THAT SENSE, THE WORKSPACES THAT WE ALL INHABIT IS PART OF THAT INFRASTRUCTURE TRAIN.
IT'S NOT JUST THE PIPELINES, IT'S THE MOTOR VEHICLE INFRASTRUCTURE.
IT'S THE INVENTORY AND WAREHOUSE STRUCTURE THAT PROVIDES EVERYTHING THAT GOES FROM THE BEGINNING DROPS OF WATER, FROM A WELL OR FROM AN AQUEDUCT AND GETS IT TO THE, TO THE CUSTOMER, RIGHT? SO AS WE TALK ABOUT AGING INFRASTRUCTURE AND THE CHALLENGES THAT WE FACE, FACILITY CONSOLIDATION THAT YOU'VE SEEN IN A COUPLE OF DIFFERENT INFORMATION ITEMS BROUGHT TO YOU HAS IN PART THAT CRITICAL ELEMENT AS WELL.
IT IS AGING INFRASTRUCTURE THAT HAS TO BE UPDATED FOR A NUMBER OF REASONS.
IT'S OUR OBLIGATION TO WORK WITH YOU TOGETHER TO TRY TO BRING THAT ISSUE FORWARD IN A COMPREHENSIVE MANNER SO THAT WE CAN STEP OUR WAY TOGETHER AS TO WHAT TO DO NEXT.
ED POINTED IT OUT, AND YOU'VE SEEN A NUMBER OF SITUATIONS WHERE WE'VE BEEN TALKING ABOUT THIS.
THE DRIVE FOR GROUNDWATER, THE DRIVE FOR GROUNDWATER IS GONNA COST MONEY, AND AS IT COSTS MONEY, THERE'S GONNA BE AN INEVITABLE COMPARISON WITH WHAT THE ALTERNATIVE RESOURCE IS.
ED SHOWED YOU THIS KIND OF LONG RANGE PLANNING THE METROPOLITAN DOES FROM A FINANCIAL PERSPECTIVE, THAT BEGINS TO TARGET WHAT AN ACTUAL THRESHOLD COST WOULD BE ON THE COST PER ACRE FOOT.
A CHALLENGE FOR US WORKING YOU THE BOARD IS CAN WE DEVELOP THAT PATHWAY TOWARDS LOCAL RESOURCE DEVELOPMENT THAT AT THE SAME TIME ALLOWS US COLLECTIVELY TO LOOK AT WHAT THOSE COSTS ARE AND TO MAKE THAT JUDGMENT, DO WE PULL THE TRIGGER OR NOT? OR, OR IF WE DO, DO WE UNDERSTAND THE BENEFITS THAT WE'RE GETTING? AND SO THAT'S, THAT'S IN THE WATER RESOURCES SIDE.
THE ACCELERATED SEWER PUMP STATION IMPROVEMENTS, AGAIN, IN TERMS OF INFRASTRUCTURE AND CHALLENGES THAT YOU CAN FACE AS A BOARD WITH ANY NUMBER OF DECISIONS.
SOMETIMES IN ORDER TO DEAL WITH COST PRESSURES, UH, OR CHALLENGES, YOU COULD DEFER THE INFRASTRUCTURE, YOU COULD DEFER THE INFRASTRUCTURE THAT WOULD PUT OFF INTO THE FUTURE OTHER COSTS, BUT IT WOULD GIVE YOU BENEFITS IN THE SHORT TERM.
YOU COULD ACTUALLY DO THE OPPOSITE.
YOU COULD ACTUALLY ACCELERATE INFRASTRUCTURE TO ACHIEVE A GOAL, BUT IF YOU ACCELERATE THE INFRASTRUCTURE, THEN THERE COULD BE BENEFITS THAT YOU HAVE TO BE CLEAR ON AS TO WHAT THEY ARE IN THE OUT YEARS AND ON THE SEWER PUMP STATIONS, AS WE LOOK AT SOME OF THE CHALLENGES THAT WERE AS A COMMUNITY WE'RE DEALING WITH, WITH THE COMING OLYMPICS, THE CRITICAL ASPECT WILL BE IS WHAT ARE THE FINANCIAL DECISIONS
[02:30:01]
THAT WE CAN CONTROL IN ORDER TO MAKE THOSE INVESTMENTS IN INFRASTRUCTURE AND SEWER THAT AT THE SAME TIME PROVIDE BENEFITS TO THE COMMUNITY OVER AND ABOVE, UH, ANY ISSUES LIKE THE EVENT ITSELF, GAS DEMAND PROJECTIONS AND BUDGET IMPLICATION, THAT IS SOMETHING THAT'S GOING TO COME FORWARD.WE HAVE A SEPARATE INFORMATION SESSION FOR YOU ON GAS THAT IS INTENDED TO DO THE SAME THING TO GIVE YOU A BODY OF KNOWLEDGE ON GAS, BUT I WANTED TO FOCUS FOR A MOMENT ON THE PORT WATER SYSTEM NEEDS.
SO A LONG TERM OBJECTIVE THAT WE'VE HAD IS WORKING WITH OUR OTHER FELLOW DEPARTMENT, THE PORT OF LONG BEACH.
THEIR WATER SYSTEM, FOR A NUMBER OF REASONS, INCLUDING REGULATORY PERSPECTIVES, IS BEING ASKED TO BE TRANSFERRED OVER TO US OPERATIONALLY IN ORDER TO MAKE THOSE OPERATIONAL ADJUSTMENTS.
THERE IS AN INVESTMENT THAT INFRASTRUCTURE THAT NEEDS TO TAKE PLACE THAT IS A FAIRLY LARGE NUMBER.
AND AS WE DO IT, IT IS IMPORTANT THAT WE AND THE PORT ARE WORKING HAND IN HAND TO MAKE THAT CHANGEOVER HAPPEN.
THE PORT IS ANXIOUS FOR THAT DECISION TO BE MADE SOONER RATHER THAN LATER.
BUT WITHOUT AN INVESTMENT OF INFRASTRUCTURE, WE'RE NOT CONFIDENT THAT WE'RE ACTUALLY ABLE TO TAKE OVER THE SYSTEM OPERATIONALLY.
SO IT'S IN IMPORTANT THAT AS STAFF AND BOARD, THAT WE WORK TOGETHER ON THAT ISSUE, WORK TOGETHER WITH THE PORT, AND ESTABLISH THE TIMELINE FOR THESE IMPROVEMENTS.
UNDERPINNING THAT BACK TO THE INFRASTRUCTURE, THE WORKFORCE IS PART OF THAT INFRASTRUCTURE.
AND AN ASSUMPTION INHERENT IN THE PORT WATER SYSTEM TRANSFER IS THAT ANY CONSTRUCTION OF INFRASTRUCTURE WILL BE MANAGED BY UTILITIES, WHICH MEANS THAT IT DOESN'T MATTER WHO'S PAYING FOR IT.
WHAT MATTERS IS THAT THERE'S THE WORKFORCE AND THE BANDWIDTH CAPABILITY FOR UTILITIES TO UNDERTAKE THAT WATER SPECIFIC CONSTRUCTION WORK AT THE SAME TIME THAT SOMEONE ELSE IS GONNA PAY FOR IT.
BUT THAT'S, THAT'S AN INHERENT STRATEGIC DECISION COMING FORWARD.
AND AS ED POINTED OUT, HAVING THE BANDWIDTH OF YOUR WORKFORCE IS INCREDIBLY IMPORTANT.
SO THAT KIND OF BRINGS IT ALL TOGETHER.
I KNOW THAT'S A VERY SHORT TIME, UM, BUT IT HELPED, GIVES YOU AN UNDERSTANDING OF WHAT I HOPE TO GET OUTTA THIS INFORMATION SESSION, PROVIDING ALL OF US A COMMON BASE OF KNOWLEDGE.
WE ARE INDEED STEPPING OUR WAY THROUGH NOW AS WE FOCUS, MY APOLOGIES, AS WE FOCUS ON THE STRATEGIC RETREAT.
THAT RETREAT IS SCHEDULED FOR MARCH 31ST.
AS WE DO THESE INFORMATION SESSIONS, WE'LL BEGIN WORKING WITH YOU ON SHAPING THE DETAILS WITHIN THAT RETREAT ITSELF, AND YOU'LL GET TO PARTICIPATE IN THAT.
AND NO DOUBT, THAT WAS MY HOPE.
THAT IS AS WE MOVE FORWARD IN THIS STRUCTURED STEP-BY-STEP MANNER, IF YOU LOOK OUT TO WHAT THE SECOND HALF OF 2025 MIGHT HAVE, IF WE WORK OURSELVES THROUGH THIS INITIAL PROCESS, I THINK WE WILL HAVE BODY OF KNOWLEDGE WORKING PROCESSES BETWEEN BOARD AND STAFF, AND AN ABILITY TO THINK FORWARD ON SOME OF THESE ISSUES TO SET IN MOTION STRATEGIC PLANNING PROCESSES IN THE SECOND HALF OF 2025.
I KNOW THIS WAS THE FIRST SHOT AT TRYING TO DO SOMETHING LIKE THIS.
WE ALLOCATED 90 MINUTES TO DO IT, AND I KNOW WE'RE RUNNING UP AGAINST TIME LIMITS, BUT I WANTED TO DEFER TO STAFF IF THEY HAVE ANY COMMENTS WITH THE BOARD HERE, OR IF YOU HAVE COMMENTS OF STAFF.
UH, THAT WAS THE POINT OF THE SESSION.
SO THIS WAS A, A MAGNIFICENT JOB.
I JUST HAVE TO THROW MY 2 CENTS IN.
THAT'S FROM SOMEONE WHO DOESN'T USUALLY LIKE, RIGHT.
WHAT, WHAT, THAT WAS PRETTY HIGH PHRASE FROM SOMEONE WHO, YEAH, THIS BAR IS VERY HIGH.
STOP ALL YOUR HEAD
IS THIS ON, THERE'S SEVERAL THINGS THAT STUCK OUT TO ME, AND YOU DID A GREAT JOB.
UM, I, THAT LAST SLIDE ON THE, WHERE WE GO FROM HERE? YEAH.
UM, MAYBE NOT UNDER POLICY, BUT I WOULD LIKE TO SEE, BECAUSE SOMETHING THAT STUCK OUT TO ME WAS THE ISSUE OF THE CUSTOMER.
ONE, THAT CUSTOMERS WILL CONTINUE TO TAKE WATER FOR GRANTED, WHICH IS A REALLY STRONG STATEMENT WHEN YOU TALK ABOUT THE FACT THAT, LIKE WHEN YOU SHOWED THE MET SLIDE WHERE THE, UM, THE RATES ARE GONNA GO LIKE THIS AND THE THE DEMAND IS GOING TO STAY FLAT.
WELL, PEOPLE DON'T UNDERSTAND THAT AS EVERYBODY IN THIS ROOM UNDERSTANDS WHAT THE IMPLICATIONS ARE ON THAT.
UM, SO I THINK IT'S GONNA BE REALLY KEY THAT THINKING BIGGER THAN, THAN JUST MAYBE POLICY THINGS AND FACILITIES AND INFRASTRUCTURE AND TECHNOLOGY IS THE WORK THAT WE WILL DO TO TRY AND EDUCATE, BECAUSE FRANKLY, WATER IS RELATIVELY CHEAP.
IT IS, BUT PEOPLE AREN'T UNDERSTANDING THAT BECAUSE OF THE FIXED COSTS AND THAT SORT OF THING.
SO HOW, AND THERE MAY BE A TIME WHEN WE HAVE TO DO 13%.
SOME OF THE, I THINK SAN DIEGO'S DONE QUITE A BIT ON TERMS OF RAISING THEIR WATER, WATER RATES.
UM, THE OTHER THING THAT STUCK OUT
[02:35:01]
TO ME, AND I, I'D LIKE TO SEE THAT AS A GUIDING LIGHT FOR US IS INNOVATIVE PROGRAMS DRIVE IMPROVEMENTS.SO HOPEFULLY THAT AS A MANDATE FOR ALL OF US, UM, WILL DRIVE US USING THOSE POLICY DECISIONS THAT WE MAKE.
ANY OTHER COMMENTS OR QUESTIONS? I, I WAS REALLY GREAT, UH, BROAD IN SCOPE.
REALLY APPRECIATE THE, YOU HIT IT ALL.
I MEAN, IT'S KIND OF, IT'S CERTAINLY OVERWHELMING.
UM, I JUST, I'M REALLY PROUD OF US.
I JUST WANNA SAY FOR DOING THIS, UM, IT'S ALWAYS A REFLECTION OF ANY ORGANIZATION THAT HOW YOU SPEND YOUR TIME REALLY DOES REFLECT YOUR VALUES.
AND SO FOR US, YOU KNOW, AS, AS A BOARD AND, AND ALL OF YOU AS STAFF AND OUR LEADERSHIP TO INVEST THIS AMOUNT OF TIME, WHICH IS PRIME TIME FOR ALL OF US, UM, IN LOOKING AHEAD AND UNDERSTANDING ALL THESE VARIABLES, IT'S, IT'S JUST REALLY, UM, IT'S TERRIFIC AND I'M REALLY PROUD OF THAT.
UM, LET'S SEE THIS, UH, JUST ONE MORE TIME.
ANY PUBLIC COMMENTS, ANY COMMISSIONER COMMENT, I, UH, NEED A MOTION TO RECEIVE AND FILE.
MOTION TO RECEIVE AND FILE FILE.
ANY OPPOSED? SEEING NONE, THE MOTION TO RECEIVE AND FILE IS COMPLETE.
[PUBLIC COMMENT Opportunity to address the Utilities Commission on non-agenda items. Each speaker is limited to three minutes to make their comments unless extended by the Board.]
THE PUBLIC COMMENT SECTION, AGAIN, ANYONE WISHING TO SPEAK ON A NON AGENDA ITEM AND SEEING NONE, THE PUBLIC COMMENT PERIOD IS NOW CLOSED.MEMBERS OF THE PUBLIC, SORRY, YOU ASKING THAT QUESTION? AND THERE'S NOBODY HERE I KNOW.
I'M, UH, NOW UNDER ANNOUNCEMENTS.
ANY ANNOUNCEMENTS I CALL ON ANATOL
[ANNOUNCEMENTS]
FOR OUR FINAL CLOSURE AND, NO, JUST, JUST BRIEFLY TO SAY, I, I KNOW THAT YOU'RE AWARE, I, I, UM, BRIEFED YOU SEPARATELY VIA EMAIL AS THE EVENT UNFOLDED.SO WE HAD A MAIN BREAK AT RANCHO LOS ALAMITOS, UM, THAT TOOK PLACE ON FRIDAY, FEBRUARY 7TH.
UM, AND SO THAT, THAT, UH, THAT INCIDENT AND THE EFFECTS AFTER IT CONTINUED TO UNFOLD, I KNOW THAT WITH THE CITY ATTORNEY'S OFFICE AND WITH OUR COUNSEL, UH, MARSHA YASUDA, WE SCHEDULED AN EMERGENCY, UH, CLOSED SESSION MEETING.
UH, WE WILL DISCUSS MORE, UH, UNDER CLOSED SESSION, THE EVENT AND THE PARTICULARS RELATED TO WHAT THE CITY ATTORNEY WISHES TO DISCUSS WITH YOU AT THAT TIME.
AND I ALSO INTEND TO HAVE, UH, AN AFTER ACTION REPORT, UH, THAT WILL BE PRESENTED TO YOU AT A LATER DATE.
COMMISSIONER CORDERO, JUST VERY BRIEFLY.
I, I WANTED TO MENTION THAT THE COLORADO RIVER BOARD WILL BE HOLDING, WILL BE HOLDING ONE OF OUR BOARD MEETINGS HERE IN LONG BEACH.
UM, AND EVERYBODY, ANYBODY WHO WOULD LIKE TO ATTEND IS WELCOME TO ATTEND.
IT'LL BE HELD AT THE PORT OF LONG BEACH.
UM, THE FOLLOWING DAY ON THE 12TH, WE'LL BE DOING AN EIGHT TO THREE BOARD RETREAT, UH, AT, AT THE PORT AS WELL.
UM, A LITTLE MORE INFORMATION ON THAT.
THERE'S A PORT TOUR THAT WE'RE LOOKING AT ON THE 11TH, SO HOPING SOME OF, SOME OF, UH, I'D LIKE TO LET YOU KNOW ABOUT THAT.
UM, WE'LL TALK ABOUT POSSIBLY HAVING SOME OF OUR, UH, STAFF ATTEND THAT AS WELL.
SO THAT'S THE 11TH AND THE 12TH OF MARCH.
AND NEXT WEEK, UM, THREE, THERE ARE FOUR OF US ATTENDING, UH, THE URBAN WATER INSTITUTE.
AND WE LOOK FORWARD TO LEARNING LOTS MORE.
I KNOW THEY'RE GONNA BE TALKING ABOUT, UM, OUR LOCAL FIRES,
IT'S, IT'S BIG ON THE AGENDA, SO I'M SURE THERE'LL BE FORTHCOMING INFORMATION ON THAT TOO.
NOT TOO BAD CONSIDERING ALL WE STAYED ON TIME.