Mar 06, 2025 Utilities Commission

PRETTY FULL

[00:00:01]

MEETING'S

[CALL TO ORDER]

CALL ON CYNTHIA

[PLEDGE OF ALLEGIANCE]

THANK YOU, CYNTHIA.

UM, LET'S SEE.

I CALL ON DINA FOR THE ROLL CALL.

[ROLL CALL]

HERE, VICE PRESIDENT SCOTT.

SECRETARY CORDERO.

COMMISSIONER SHANNON.

COMMISSIONER RAINEY IS ABSENT.

WE HAVE A QUORUM FOR THE RECORD.

COMMISSIONER RAINEY IS EXCUSED FROM TODAY'S BOARD MEETING.

ARE THERE ANY OBJECTIONS FROM THE BOARD? SEEING NONE, UH, WE'LL NOW MOVE ON TO THE REGULAR

[1. 25-54557 Recommendation to approve February 20, 2025 Board meeting minutes.       Suggested Action: Approve recommendation. ]

ITEM NUMBER ONE IS TO APPROVE FEBRUARY 20TH, 2025.

BOARD MEETING MINUTES.

DO I HAVE ANY PUBLIC COMMENT? DO WE HAVE ANY MEMBERS OF THE PUBLIC PRESENT? , I KEEP ASKING THIS QUESTION, FOR THE RECORD.

UM, DO I HAVE A MOTION TO APPROVE? ANY APPROVE? ANY, DO I HAVE A SECOND? THANK YOU, COMMISSIONER SCOTT.

ALL IN FAVOR SAY AYE.

AYE.

ANY OPPOSED? NO, THANK YOU.

THE MINUTES ARE APPROVED.

[2. 25-54558 Recommendation to authorize the General Manager to execute all documents necessary to amend Agreement WD-3679 with ConvergeOne Inc., for Hybrid Cloud Telephone System, to increase the total aggregate contract amount by $61,000 plus a 10% contingency, for a revised total aggregate contract amount not to exceed $633,600.       Suggested Action: Approve recommendation. ]

I CALL ON ERNIE NEY.

ON MARCH 31ST, 2022, THE BOARD OF WATER COMMISSIONERS ENTERED INTO AN AGREEMENT WITH CONVERGE ONE INCORPORATED IN THE TOTAL AGREEMENT AMOUNT OF $515,000 WITH A 10% CONTINGENCY FOR HYBRID CLOUD TELEPHONE SYSTEMS FOR A PERIOD OF THREE YEARS.

DEVELOP AND IMPLEMENT A FULLY INTEGRATED SYSTEM WITH ITS MAIN REQUIREMENT OF THE SYSTEM TO MAINTAIN INTEGRATION WITH THE CITIES LONG BEACH.

ERNIE, IS YOUR MICROPHONE TURNED ON? YES.

ARE WE? WE'RE HAVING TROUBLE HEARING YOU.

I AM OKAY, .

OKAY.

ALL RIGHT.

DO YOU WANT ME TO START OVER? YES, PLEASE.

OKAY.

ON MARCH 31ST, 2022, THE BOARD OF WATER COMMISSIONERS ENTERED INTO AN AGREEMENT WITH CONVERGEONE INCORPORATED IN A TOTAL AGGREGATE AMOUNT OF $515,000 WITH A 10% CONTINGENCY OR HYBRID CLOUD TELEPHONE SYSTEMS FOR A PERIOD OF THREE YEARS TO DEVELOP AND IMPLEMENT A FULLY INTEGRATED VOICEOVER IP PHONE SYSTEM.

A MAJOR REQUIREMENT OF THE SYSTEM WAS TO MAINTAIN INTEGRATION WITH THE CITY OF LONG BEACH'S PHONE SYSTEM.

DUE TO THE MERGER OF WATER, SEWER, AND GAS, SEVERAL CHANGES HAVE BEEN REQUIRED TO INTEGRATE BOTH FACILITIES.

ALL QUEUES HAVE NEEDED TO BE CHANGED AND EXPANDED, AND THE NEW MEMBERS ADDED HAVE REQUIRED AN INCREASE IN LICENSES AND THEIR FEES.

THE AFTER HOURS CALL CENTER HAS MOVED FROM THE GROUNDWATER TREATMENT PLANT CONTROL ROOM TO GAS.

DISPATCHES GAS IS EQUIPPED TO PROVIDE BETTER SERVICE TO OUR CUSTOMERS AS WELL.

GENERAL CALL RECEPTION DUTIES HAVE MOVED TO GAS DISPATCH.

SOME FIREWALL AND ROUTES CHANGES HAVE BEEN REQUIRED TO PERMIT THE AMOUNT OF VOICE OVER IP TRAFFIC FROM CONVERGE ONE THROUGH THE CITY AND THEN INTO THE GAS COMPLEX.

DUE TO THESE CHANGES IN THE INCREASED SUPPORT SERVICES PROVIDED TO US BY CONVERGE, ONE FAF RECOMMENDS THE BOARD AUTHORIZE THE GENERAL MANAGER TO AN APPROVE INCREASE TO THE CONTRACT AMOUNT BY $61,000 PLUS A 10% CONTINGENCY FOR THE REVISED TOTAL AMOUNT NOT TO EXCEED $633,600.

I'M READY TO ANSWER ANY QUESTIONS THAT YOU MAY HAVE.

THANK YOU.

GREAT, THANK YOU.

DO WE HAVE ANY PUBLIC COMMENTS, COMMISSIONER COMMENT QUESTIONS? I JUST WANNA SAY THANK YOU FOR THAT REPORT AND I THINK THAT MAINTAINING INTEGRATION WITH THE CITY IS KEY, RIGHT? YES.

UM, SO I, I HAVE A QUESTION, AND I'M SOMEWHAT NAIVE ON THIS.

WHEN WE TALK ABOUT A HYBRID CLOUD TELEPHONE SYSTEM, WOULD THIS BE FOR LIKE ALERTS THAT WOULD GO OUT, UH, FROM THE CITY

[00:05:01]

OKAY.

THANK YOU.

THANK YOU FOR THAT CLARIFICATION.

ANY OTHER COMMISSIONER COMMENT? DO I HAVE A MOTION TO APPROVE? SECOND.

THANK YOU.

UH, ALL IN FAVOR SAY AYE.

AYE.

ANY OPPOSED? MOTION CARRIES.

THANK YOU, ERNIE.

[3. 25-54559 Recommendation to adopt Resolution No. UT-1532 amending the Long Beach Board of Public Utilities Commissioners Resolution No. UT-1516 to establish new skill pay for the Gas Construction Worker classification, retroactive to September 21, 2024.       Suggested Action: Approve recommendation. ]

AND WE HAVE DIANA TANG FOR THIS.

THANK YOU.

GOOD MORNING COMMISSIONERS.

UM, I'LL BE ASKING JAIME GARCIA TO COME PRESENT THE REPORT.

WHAT YOU'LL HEAR TODAY IS A, UH, IS PART, I SHOULD SAY PROBABLY PART TWO OF A THREE-PART APPROVAL PROCESS, WHICH WE'VE BEEN WORKING WITH OUR GAS CONSTRUCTION WORKER TEAM AND IBW ON JAIME HAS BEEN LEADING THE EFFORT.

THE CIVIL SERVICE PROCESS HAS BEEN COMPLETED.

WE ARE HERE BEFORE THE COMMISSION TODAY, AND THE NEXT STEP AFTER YOUR VOTE MAY BE THE CITY COUNCIL.

SO WITH THAT, I'LL TURN IT OVER TO JAIME.

THANK YOU, DIANA, AND GOOD MORNING COMMISSIONERS.

WE HAVE A PRESENTATION HERE FOR YOU TODAY, WHICH WE WILL GO AHEAD AND GET STARTED WITH.

ON JUNE 6TH, 2024, THE BOARD OF UTILITIES COMMISSIONERS ADOPTED RESOLUTION NUMBER UT 1516.

THIS SALARY RESOLUTION SET COMPENSATION PARAMETERS INCLUDING SKILL PACE FOR UTILITIES CLASSIFICATIONS IN 20 20 20, I'M SORRY, 2023.

CITY LABOR NEGOTIATIONS PROVIDED EQUITY ADJUSTMENTS TO EMPLOYEE CLASSIFICATIONS SPECIFIC TO EACH JOB CLASSIFICATION.

THE GAS CONSTRUCTION WORKER UTILITIES ONLY TITLE BY THE WAY, IS 17% EQUITY ADJUSTMENT TO THE HOURLY RATE.

SENIOR EQUIPMENT OPERATOR, WHICH IS A CITYWIDE TITLE, HAS ONLY AN 8% EQUITY ADJUSTMENT TO THE HOURLY RATE.

THE CHALLENGE THAT WE SAW BEFORE US WAS THE COMPENSATION CHANGES TO THE GAS CONSTRUCTION WORKER.

THE CLASSIFICATION CAUSED AN UNINTENTIONAL CONSEQUENCE.

THESE UNEQUAL CHANGES IN COMPENSATION WITHIN GAS CONSTRUCTION CREWS RELATIVE TO THE JOB DUTIES IN THE FIELD.

NOW, A PATH TOWARDS SOLUTION TO ADDRESS THIS COMPENSATION ISSUE, THE LBUD MET AND CONFERRED WITH THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS, OR IBEW AGREEMENT WAS REACHED ON A SOLUTION IN MAY, 2024.

LBUD AND IBEW AGREED TO A TWO STEP PROCESS.

ONE TRANSITION SENIOR EQUIPMENT OPERATOR EMPLOYEES TO THE GAS CONSTRUCTION WORKERS CLASSIFICATION, AND TWO, IMPLEMENT A $2 70 PER HOUR HEAVY EQUIPMENT OPERATOR SKILL PAY FOR THOSE GAS CONSTRUCTION WORKERS REGULARLY ASSIGNED TO DUTIES REQUIRING THE SKILL OF OPERATING HEAVY EQUIPMENT.

UH, STEP ONE POSITION, REVERSION CIVIL SERVICE COMMISSION COMPLETED THIS ACTION ON SEPTEMBER 11TH, 2024, AND CIVIL SERVICE INITIALLY APPROVED THE REQUEST FOR SEO EMPLOYEES TO REVERT TO THEIR PRIOR CLASSIFICATION OF GAS CONSTRUCTION WORKER ON FEBRUARY 27TH, 2025.

CIVIL SERVICE VOTED TO RESCIND THAT ACTION ON SEPTEMBER 11TH, 2024, AND INSTEAD APPROVED THE CONSOLIDATION OF SENIOR EQUIPMENT OPERATOR INTO GAS CONSTRUCTION WORKER INTO THE GAS CONSTRUCTION WORKER CLASSIFICATION, EXCUSE ME, RETROACTIVE TO THE ORIGINAL COMMISSION APPROVAL DATE OF SEPTEMBER 11TH, 2024, WITH CONSOLIDATION AND COMPENSATION AS GAS CONSTRUCTION WORKERS EFFECTIVE SEPTEMBER 21ST, 2024.

STEP TWO, THE ADDITION OF A SKILL PAY.

SO SALARY RE THE SALARY RESOLUTION AMENDMENT, WHICH IS PENDING THE, THIS REQUEST IMPLE INCLUDES THE IMPLEMENTATION OF A $2 AND 78 CENTS PER HOUR.

HEAVY EQUIPMENT OPERATED SKILL PAY FOR THOSE GAS INSTRUCTION WORKERS REGULARLY ASSIGNED TO DUTIES REQUIRING THE SKILL OF OPERATING HEAVY EQUIPMENT, AND REQUIRES THE AMENDMENT TO THE UTIL UTILITY SALARY RESOLUTION NUMBER UT 1516 APPROVALS NEEDED FROM FIRST OFF LONG BEACH BOARD OF PUBLIC UTILITIES COMMISSION.

AND THEN SECONDLY, THE LONG BEACH CITY COUNCIL.

THE RECOMMENDATION FROM STAFF IS TO ADOPT RESOLUTION NUM NUMBER UT 1532, AMENDING THE LONG BEACH BOARD OF PUBLIC UTILITIES COMMISSIONERS' RESOLUTION NUMBER UT 1516 TO ESTABLISH NEW SKILL PAY FOR THE GAS CONSTRUCTION WORKER CLASSIFICATION RETROACTIVE TO SEPTEMBER 21ST, 2024.

AND I'M OPEN TO TAKING ANY QUESTIONS YOU HAVE AT THIS TIME.

THANK YOU FOR THAT EXPLANATION.

A LOT OF BACK AND FORTH IT SOUNDS LIKE.

UM, ARE THERE ANY PUBLIC COMMENTS FIRST? ANY COMMISSIONER COMMENT?

[00:10:02]

UH, THANK YOU.

THANKS HEIME.

UM, UH, SO A COUPLE QUESTIONS.

SO, UH, DOES THIS CURRENT RECOMMENDATION, DOES IT ALIGN WITH THE MEET AND CONFER PROCESS? I, I ASSUME IT'S YES.

YES, SIR.

COMMISSIONER SCOTT.

IT DOES.

UM, WHAT WAS THE, THE REASON WHY CIVIL SERVICE CHANGED THEIR SEPTEMBER 11TH, 2024, UH, DECISION? WHAT WAS THE BACK AND FORTH THERE? SORRY.

AND I CAN HAPPILY ANSWER THAT QUESTION.

SO, THERE WAS A, UH, DISAGREEMENT BETWEEN CIVIL SERVICE AND HUMAN RESOURCES IN REGARDS TO WHAT WAS THE BEST PATH FORWARD.

UH, THE DEPARTMENT WORKED WITH BOTH DIVISIONS, I'M SORRY, DEPARTMENTS TO, UH, YOU KNOW, NEGOTIATE AND FIND THE BEST WAY FORWARD THAT ACTUALLY MET THE, YOU KNOW, THE DEFINED PROCESS, UH, THAT WOULD MEET THE NEEDS AND, UH, REQUIREMENTS OF BOTH CIVIL SERVICE AND HR.

SO THAT WAS WHY CIVIL SERVICE, I'M SORRY, THE DEPARTMENT SUBMITTED A NEW ACTION FOR CIVIL SERVICE COMMISSION TO THEN, UM, NOT ONLY RESIN THE ACTION THAT WAS TAKEN ON SEPTEMBER 11TH, BUT THEN PASS THIS CONSOLIDATION IN LIEU OF A REVERSION.

SO THIS WAY WAS DEEMED TO BE THE MORE APPROPRIATE WAY FOR US TO PROCESS THAT ACTION.

SO, MOVING FORWARD NOW, GAS CONSTRUCTION WORKER AND, UH, WHAT S SENIOR EQUIPMENT OPERATOR? YEAH.

SO THAT'S, THAT'S ALL NOW MASHED INTO ONE, AND, AND YES, IT'S ALL MOVING FORWARD.

SO THE, YEAH, THE, UH, EXACTLY RIGHT.

SO THE, THE SENIOR EQUIPMENT OPERATOR IS A CLASSIFICATION THAT NO LONGER EXISTS WITHIN THE UTILITIES.

AFTER THIS ACTION TAKEN BY THE CIVIL SERVICE COMMISSION.

INSTEAD, IT CREATES AND CONSOLIDATES THE, UH, POSITIONS INTO THE GAS CONSTRUCTION WORKER CLASSIFICATION, WHICH IS A UTILITIES ONLY SPECIFIC TITLE.

SO IT PROVIDES FURTHER, UM, CONSOLIDATION CONTROL AND, UH, YOU KNOW, UH, I, I'M LOSING THE LAST ADJECTIVE, BUT IT BASICALLY ALLOWS FOR US TO HAVE MORE DIRECT, UH, CONTROL OVER THE POSITION, AND IT MAKES IT SPECIFIC TO THE UTILITIES, WHICH WE SEE AS A, AS A NET POSITIVE.

SO IF, IF IBEW, IF WE REACHED AN AGREEMENT WITH THEM IN THE MEET AND CONFER PROCESS BACK IN MAY, UM, WHY DOES THIS THEN NOT TAKE EFFECT UNTIL SEPTEMBER? THAT'S AN EXCELLENT QUESTION.

UM, SO THAT, BASICALLY IT'S JUST DUE TO THE TIMELINE IN REGARDS TO HOW MUCH BACK AND FORTH WENT BETWEEN CIVIL SERVICE, HUMAN RESOURCES, AND THEN, UH, THE DEPARTMENT STAFF.

UH, THERE WERE CHALLENGES IN THAT.

UM, BUT, YOU KNOW, AFTER WORKING TOGETHER ALL THE WAY THROUGH THE PROCESS, WE ENDED UP WITH THE RESOLUTION THAT, WELL, FIRST WENT FORWARD ON SEPTEMBER 11TH, AND THEN NEEDED FURTHER, UH, REVIEW, AND THEN WITH THE ACTION THAT WAS TAKEN, UH, TWO WEEKS AGO ON FEBRUARY 27TH.

SO THOSE EMPLOYEES THAT WORKED FROM MAY TILL SEPTEMBER IN THIS NEW COMBINED JOB CLASSIFICATION SKILL PAY, UH, SHOULD THEY NOT BE MADE WHOLE FOR THAT, THAT PERIOD OF TIME, UH, I WILL LET YOU KNOW, COMMISSIONER, THAT, UH, WITH HUMAN RESOURCES, IT HAS BEEN VERY CHALLENGING TO OBTAIN, UM, REVISIONAL OR LIKE RETROACTIVE ACTIONS, UH, TO A SIGNIFICANT TIME PERIOD.

AND FOR US, IT WAS ACTUALLY VERY DIFFICULT JUST TO OBTAIN, UH, CONFIRMATION THAT WE'D GET A RETROACTIVE ACTION ALL THE WAY BACK TO, UH, SEPTEMBER 11TH.

NORMALLY, HUMAN RESOURCES, UH, IS A FORWARD MOVING AID LIKE A DEPARTMENT, SO THEY WILL NOT CONSIDER, UH, A RETROACTIVE ACTION WITH THAT MUCH TIME IN BETWEEN.

UH, SO THIS IN, IN AND OF ITSELF WAS A, WAS A GRAND WIN FOR THE DEPARTMENT TO BE SURE THAT WE WERE ABLE TO GET, UH, RETROACTIVITY BACK TO SEPTEMBER 11TH.

AND JUST, IF I COULD CLOSE THE, THE LOOP ON THAT, UM, UTILITIES AND IBW HAS BEEN WORKING VERY CLOSELY ON THIS ITEM, UM, REALLY SINCE THE BEGINNING OF THE MERGER.

THE ACTION THAT YOU, THAT IS BEFORE YOU TODAY WAS TAKEN ON BEHALF OF WATER UTILITY MECHANICS AND SENIOR EQUIPMENT OPERATORS THAT PREVIOUSLY EXISTED IN THE WATER DEPARTMENT AT THE TIME ALSO.

SO WHAT WE'RE DOING TODAY CATCHES THE GAS SIDE UP WITH WHAT HAS ALREADY BEEN DONE FOR WATER.

IBW HAS BEEN SUPPORTIVE FROM THAT, OF THAT, FROM THE VERY BEGINNING AND EVEN PRIOR TO THE MERGER.

IT WAS SOMETHING THAT THEY EXPRESSED AN INTEREST IN PURSUING IF THE MERGER HAD PASSED.

UM, A, AS JAIME MENTIONED, AND AS HAS BEEN DISCUSSED EXTENSIVELY ABOUT RECRUITMENTS AND EMPLOYEE RETENTION, UM, THAT WORK REALLY INVOLVES, UM, THE DEPARTMENT THAT, THAT IS OVERSEEING THE EMPLOYEES, CIVIL SERVICE, HR, AND THEN THE, OF COURSE, THE EMPLOYEES THEMSELVES.

UM, AND IN THIS PARTICULAR CASE, IBW AND THE DEPARTMENT WERE CONSISTENTLY ON THE SAME PAGE.

UM, AS JAIME MENTIONED, THERE WAS A LOT OF BACK AND FORTH OVER INTERPRETATION OF LANGUAGE AND WHICH LANGUAGE, UM, WOULD END UP, UM, BEING THE, THE ACCEPTED LANGUAGE FOR MOVING, UM, THIS ITEM FORWARD.

AND ULTIMATELY, WE WERE ABLE TO GET ALL FOUR GROUPS, UM, ON THE SAME PAGE.

AND SUPPORTIVE, IBWI WOULD SAY, IS VERY THANKFUL TO THIS DEPARTMENT FOR ADVOCATING FOR, UM, THE RETROACTIVITY OF THE SKILL PAY AND, AND THE CLASSIFICATION REVERSION, UM, FOR

[00:15:01]

AND ACTUALLY ONE HAS PROMOTED SINCE THIS PROCESS STARTED SO FAR.

UH, AND SO, UH, WHILE, WHILE WE WOULD NOT OPPOSE THE RETROACTIVITY BACK TO MAY, UM, THIS IS THE AGREED UPON SOLUTION THAT ALL OF THE ENTITIES HAVE SETTLED ON AND WISH TO MOVE FORWARD WITH.

OKAY.

UM, THAT'S FINE.

THANK YOU.

AND THEN THE, UH, BROUGHT UP ANOTHER ISSUE WITH THE PROMOTION.

WILL THAT, WILL THE PROMOTED PERSON RECEIVE RETRO PAY TO SEPTEMBER? OR DID THEY PROMOTE AFTER OR BEFORE SEPTEMBER? THEY PROMOTED BEFORE, SO THIS WOULD NOT IMPACT THEM.

I, UM, I, I ALSO REALLY DO WANNA HIGHLIGHT THE, UM, THE IMPACT THAT THE MOU NEGOTIATION HAD ON THE ISSUE.

SO WHILE THE DESIRE WAS ALWAYS TO BRING THE GAS SIDE FORWARD TO WHERE WATER HAD BEEN ON THE POSITION CLASSIFICATION, THE ISSUE OF PAY DIDN'T REALLY COME INTO EFFECT UNTIL, UM, UNTIL THE NEW MOUS TOOK EFFECT.

AND MOVING FORWARD, NOW, UH, GAS AND WATER HEAVY EQUIPMENT OPERATORS ARE AT THE SAME SKILL PAGE.

THAT IS CORRECT.

COMMISSIONER CORDERO, THANK YOU.

I, I'M JUST STILL LEARNING THE CIVIL SERVICE SIDE AS WELL, SO I APPRECIATE THIS OVERVIEW, WHAT, WHAT HAS TRANSPIRED, AND I APPRECIATE THE, THE QUESTIONS, UH, THAT COMMISSIONER SCOTT HAS BROUGHT FORWARD.

BUT, UM, I, I JUST HAVE TO SAY ON A DIFFERENT SUBJECT, IN A SENSE, UM, I REALLY COME TO RESPECT WHAT THE CIVIL SERVICES HAD TRIED TO DO IN BRINGING, UM, BOTH THE HUMAN RESOURCES AND CIVIL SERVICE TOGETHER.

AND, UM, AS I SIT THERE IN MY LACK OF KNOWLEDGE ON CIVIL SERVICE AND LEARNING A LOT, UM, IS HOW IMPORTANT THAT WHOLE PROCESS IS TO KEEPING OUR EMPLOYEES, RETAINING OUR EMPLOYEES, AND, UM, YOU KNOW, PROMOTING PEOPLE AND, AND THAT SORT OF THING.

SO I GREATLY APPRECIATE THE WORK AND THE WORK THAT YOU HAVE DONE, DIANA, AND YOUR GROUP CLIMATE FOR, FOR THIS.

SO THANK YOU.

THANK YOU.

COMMISSIONERS.

DO WE HAVE ANY PUBLIC COMMENT? I, I'VE ALREADY ASKED.

I'LL ASK AGAIN.

UH, DO I HAVE A MOTION TO APPROVE? I HAVE A, A SECOND.

A MOTION AND A SECOND.

THANK YOU.

UM, THIS IS A ROLL CALL VOTE.

DINA, VICE PRESIDENT SCOTT.

AYE.

SECRETARY CORDERO? YES.

COMMISSIONER SHANNON.

COMMISSIONER RAIN IS ABSENT.

PRESIDENT MCGUIRE? YES.

OKAY.

THE MOTION CARRIES.

HI, ME.

THANK YOU SO MUCH, DIANA.

GOOD DISCUSSION.

OKAY.

ITEM NUMBER FOUR

[4. 25-54560 Recommendation to receive and file the annual update from The Gualco Group on state legislative advocacy and lobbying services.       Suggested Action: Approve recommendation. ]

AND DIANA WILL KICK IT OFF.

THANK YOU.

GOOD MORNING COMMISSIONERS.

UM, UM, TODAY WE HAVE WITH US JACK ALCO OF THE ALCO GROUP, AND HE WILL GIVE US A OVERVIEW OF WHAT IS HAPPENING IN SACRAMENTO, WHICH IS QUITE, UH, AN INTERESTING TIME, UM, TO BE IN THE CALIFORNIA STATE LEGISLATURES CALIFORNIA NAVIGATES OUR NEW FEDERAL ADMINISTRATION AND, UM, THE INTERCONNECTIVITIES OF AMERICAN DEMOCRACY.

SO WITH THAT, I WILL HAND IT OVER TO JACK TO DISCUSS THOSE IMPACTS ON WATER, SEWER, AND GAS MORNING COMMISSIONERS.

UH, IT'S A PLEASURE TO BE BACK WITH YOU.

SO THANK YOU FOR THIS OPPORTUNITY TO BE HERE.

AND I THINK DIANA DID A WONDERFUL JOB KICKING OFF THE THEME OF, UH, DYSFUNCTION AND, UH, DISCOMBOBULATION THAT'S AFFECTING EVERYTHING THAT'S HAPPENING, NOT ONLY IN DC BUT SACRAMENTO.

SO, UM, LET ME GET RIGHT INTO THE MEAT OF THIS GEORGE, GEORGE HELP.

THANK YOU.

OKAY.

SO, UM, WHEN THE LEGISLATURE RECONVENED, THERE WAS A GREAT DEAL OF FOCUS ON AFFORDABILITY.

A SPEAKER RIVAS MADE QUITE A POINT OF THAT IN HIS INAUGURAL SPEECH ON THE ASSEMBLY FLOOR.

AND EVERYONE THOUGHT, GREAT, WE'RE GONNA REALLY BE ABLE TO FOCUS ON BRINGING DOWN THE COST OF EVERYTHING, UH, AS MUCH AS CALIFORNIA LEGISLATURE THE ADMINISTRATION COULD DO.

AND THEN OF COURSE, HE RAN INTO THE WILDFIRES AND ALTADENA AND PALISADES AND, UH, PARTS OF PASADENA, SIERRA MADRE.

AND SO EVERYTHING GOT REALLY KIND OF THROWN INTO A BIG, AND, UH, SO WE'RE TRYING TO SCRAMBLE TO FIGURE OUT HOW BEST TO DEAL WITH ALL THAT, BECAUSE OBVIOUSLY THERE'S GONNA BE A BIG HOLE IN THE LA COUNTY BUDGET, WHICH MEANS THAT AFFECTS THE COFFERS IN SACRAMENTO.

SO, UM, AFFORDABILITY BECAME, UH, KIND OF LINKED TO HOW ARE WE GONNA GET OUTTA THIS, THIS MESS? AT THE SAME TIME, WE'RE DEALING WITH A BUDGET DEFICIT THAT'S GONNA CONTINUE ON FOR THE NEXT COUPLE OF FISCAL YEARS, JUST BECAUSE OF STRUCTURAL PROBLEMS, UH, LINKAGE OF PROGRAMS WITH DOLLAR, THE FLOW OF DOLLARS, AND THEN OF COURSE, HOW TO MANEUVER THE CHANGES IN WASHINGTON WITH THE THREAT OF PULLING BACK SIGNIFICANT AMOUNTS OF MONEY, PARTICULARLY IN THE HEALTH AND HUMAN SERVICES ARENA.

WHAT DOES THAT MEAN FOR THE STATE BUDGET, WHICH IS

[00:20:01]

SO THOSE ARE POTENTIALLY TWO BIG HOLES.

AND WITH TALK ABOUT ELIMINATING THE DEPARTMENT OF EDUCATION, WHAT DOES THAT MEAN FOR OUR ABILITY TO, TO MAKE UP FOR THAT LOSS OF REVENUE? SO BIG CONVERSATIONS, UH, AND IN THE COURSE OF ALL THAT, YOU KNOW, HOW DO WE DEAL WITH JUST THE RUNNING OF STATE GOVERNMENT, WHICH HAS A VERY UNIQUE PLACE IN PEOPLE'S LIVES, AS WE ALL CLEARLY RECOGNIZE.

SO THE LEGISLATURE RECONVENED IMMEDIATELY START TALKING ABOUT WHAT ARE WE GONNA DO TO DEAL WITH THE, THE WILDFIRE SITUATION.

SO $2.5 BILLION WAS IMMEDIATELY APPROPRIATED TO HELP DEAL WITH THE IMMEDIATE CONSEQUENCES AND THE CLEANUP, UH, OF THE WILDFIRE.

THE SAME TIME THERE WAS A LOT OF FOCUS ON TRUMP.

TRUMP PROOFING CALIFORNIA.

AND SO, AS YOU KNOW, ATTORNEY GENERAL BONTA WAS OUT THERE VERY AGGRESSIVELY, AS WAS THE GOVERNOR.

AND THERE WERE TWO $25 MILLION APPROPRIATIONS MADE.

ONE TO DEAL WITH IMMIGRANT LEGAL SERVICES AND THE OTHER ONE TO DEAL WITH LITIGATION AGAINST THE TRUMP ADMINISTRATION.

SO IMMEDIATELY BIG HOLES WERE CREATED IN THE BUDGET BEYOND WHAT WAS EXPECTED.

SO WHAT IT DO ABOUT PROPOSITION FOUR, WHICH YOU KNOW, WAS VOTED ON IN NOVEMBER, THE CLIMATE BOND, WHICH 3.8 BILLION, IS DEDICATED TO WATER RELATED ACTIVITIES.

SO THERE WAS TALK ABOUT USING PROP FOUR TO HELP DEAL WITH THE WILDFIRE SITUATION.

SINCE THERE IS WILDFIRE MONEY AS PART OF THAT BOND, THE LEGISLATURE MADE THE DECISION, NO, WE'RE NOT GONNA DIP INTO THAT FOR THAT PURPOSE.

THEY TOOK IT FROM THE GENERAL FUND INSTEAD.

AND AT RECENT BUDGET SUBCOMMITTEE HEARINGS OVER THE LAST WEEK, UM, IT'S VERY EARLY, UM, TERRORISM MADE IT VERY CLEAR THAT NO BIG DECISIONS WILL BE MADE UNTIL AFTER THE MAY REVISION OF THE BUDGET, WHICH HAPPENS THE FIRST WEEK OF MAY.

AND THAT'S WHEN EVERYTHING GETS REAL GOVERNOR AND THE TWO LEGISLATIVE LEADERS GET TOGETHER AND FIGURE OUT WHAT THEY'RE GONNA DO.

SO FOR THE MOMENT, THERE'S A LOT OF INFORMATION BEING SHARED AND SOME SIGNALS BEING SENT ABOUT THE FACT THAT YES, PROPOSITION FOUR IS GONNA BE DIPPED INTO FOR A LOT OF THE WATER PROJECTS THAT WE'RE CONCERNED ABOUT, UM, ON CAP AND TRADE REAUTHORIZATION.

BIG DEAL FOR YOUR GAS OPERATIONS, UH, POTENTIALLY.

SO THERE IS A DESIRE TO GET, UH, REAUTHORIZATION DONE IN 2025 FOR A COUPLE OF BIG REASONS.

ONE, GET IT DONE BEFORE THE ELECTION YEAR, AND THEN SECONDLY, AVOID THE PROBLEMS WE RAN INTO BEFORE.

AS THE LEGISLATURE START STALLED OUT ITS DISCUSSIONS, THE AUCTION MARKET JUST KIND OF LOOKED AND SAID, WE'RE NOT TOUCHING THIS UNTIL YOU ALL FIGURE OUT WHAT TO DO.

SO THE EARLIER WE CAN GET IT DONE, THE BETTER.

THERE'LL BE SOME BIG DISCUSSIONS ABOUT, ALRIGHT, WE STILL WANT TO HAVE 25% DEDICATED TO HIGH SPEED RAMP.

THOSE KINDS OF CONVERSATIONS WILL OCCUR.

SO THERE MAY BE SOME REALIGNMENT, UH, ESPECIALLY IN LIGHT OF THE FACT TRUMP ADMINISTRATION'S LOOKING VERY SKEPTICALLY AT OUR HIGH, HIGH SPEED RAIL ENDEAVOR.

WILDFIRE PREPAREDNESS AND RESPONSE WILL CONTINUE TO BE A BIG ISSUE.

JUST REASONS I JUST EARLIER DESCRIBED.

EMERGENCY RESPONSE JOINT COMMITTEE'S BEEN ESTABLISHED BY THE LEGISLATURE TO LOOK AT, ARE THERE ENHANCED BETTER WAYS TO, TO GET OURSELVES PREPARED, BETTER COORDINATION BETWEEN PUBLIC AND PRIVATE ENTITIES, UH, AND HOW BEST TO RESPOND AND MAKE SURE THAT ALL THE INFORMATION THAT'S APPROPRIATE FOR A FIRE CHIEF AND A MAYOR HAVING HIS AND HER POSSESSION IS THERE.

UM, SO STAY TUNED FOR MORE DISCUSSION ON THAT.

AND THEN THIS WHOLE AFFORDABILITY QUESTION, I MEAN, TO THE EXTENT THAT THE STATE CAN REALLY DO MUCH, A LOT OF IT HAS TO DO WITH JUST, YOU KNOW, REGULATORY REQUIREMENTS, THE TIME IT TAKES TO GET A PERMIT.

ALL OF THOSE THINGS ADD UP FOR THE PRICE OF HOUSING TO BE SURE NOT TO MENTION OTHER KEY FACTORS IN THE ECONOMY.

SO THAT WILL CONTINUE TO BE, UH, A MAJOR FOCUS OF ATTENTION.

AND THEN LOW INCOME RATE ASSISTANCE.

WE'VE BEEN DEALING WITH THAT OFF AND ON FOR THE, THE LAST SEVEN YEARS.

UH, FINE TUNING THAT PROGRAM AT THE STATE LEVEL, TRYING TO IDENTIFY WHAT THE SOURCE OF MONEY'S GONNA BE WILL BE IMPORTANT.

TYPICALLY, CAP AND TRADE HAS BEEN ONE OF THE SOURCES LOOKED AT CLEARLY THE A HUNDRED MILLION DOLLARS PLUS, UH, ALLOCATION THAT'S USED TO TRY TO BRING SAFE AND CLEAN DRINKING WATER TO COMMUNITIES, PARTICULARLY DISADVANTAGED ONES THROUGHOUT THE STATE, HAS BEEN IMPORTANT.

AND I HAVE NO DOUBT THAT THAT WILL CONTINUE TO BE FUNDED.

THE BAY DELTA PROCEEDING CONTINUES TO DRAG ON, UH, THE, UH, THE NEWSOM ADMINISTRATION'S BEEN VERY AGGRESSIVE ABOUT SAYING THE STAFF APPROACH AT THE WATER BOARD, WHICH IS VERY MUCH TOP DOWN COMMAND AND CONTROL, NEEDS TO BE SET ASIDE.

VOLUNTARY AGREEMENTS NOW KNOWN AS HEALTHY RIVERS SHOULD BE THE THE WAY TO PROCEED.

AND SO THE WAY I'M ANALYZING THE WAY THE PROCESS IS UNFOLDING AT THE WATER BOARD IS THAT EVENTUALLY THEY WILL GET THERE.

THE BIG FACTOR THAT WASN'T TAKEN INTO, INTO ACCOUNT AS THAT ALL STARTED WAS, WHAT'S THE FEDERAL ADMINISTRATION GOING TO BE? A RECLAMATION IS KEY TO THE JOINT OPERATION OF THE FEDERAL AND

[00:25:01]

SO ONE OF THE THINGS THAT WE FEAR FROM A STATE WATER PROJECT PERSPECTIVE IS IF FOR SOME REASON THE BUREAU IS NO LONGER OBLIGATED TO FOLLOW THE BAY DELTA STANDARDS, THEN WILL MAKE UP THE DIFFERENCE IN WATER.

AND TYPICALLY THAT MEANS IT'S THE STATE PROJECT.

SO, YOU KNOW, THESE, THESE SIMPLE ANSWERS TO THESE COMPLEX WATER QUESTIONS THAT WERE THROWN AROUND OVER THE LAST COUPLE MONTHS, ILLUSTRATED BY THE RELEASE OF WATER FROM TWO CENTRAL VALLEY DAMS. WATER, WHICH WAS NEVER GONNA GET DOWN HERE IS A GOOD EXAMPLE OF TO BETTER UNDERSTAND THE SYSTEM.

OTHERWISE WE'RE JUST MAKING OURSELVES EVEN PUTTING OURSELVES IN EVEN MORE DIFFICULT POSITION.

AND THEN FINALLY, UNDER A SUSTAINABLE GROUNDWATER MANAGEMENT ACT, THERE'LL BE SOME FINE TUNING THAT.

UM, FORTUNATE THING IS THERE'S NOT MUCH MONEY AVAILABLE IN THE BUDGET TO HELP, UH, GROUNDWATER SUSTAINABILITY AGENCIES KINDA GET THEIR ACTS TOGETHER IF THEY DON'T ALREADY.

THE BIGGEST ONE THAT JUST HAPPENED WAS IN KERN COUNTY WHERE THERE WAS PROPOSAL TO PUT IT INTO PROBATIONARY STATUS.

AND BECAUSE OF A LOT OF WORK, UH, BY ME AND OTHERS, UH, THEY WERE GRANTED A FOUR MONTH EXTENSION TRY TO RESOLVE THE REMAINING ISSUES, THE WATER BOARD STAFF, WHICH I'M CONFIDENT THEY WILL DO.

I MEAN, THAT'S A HUGE, HUGE BASIN.

SO, UM, SIGMA WILL CONTINUE TO DRIVE WATER POLICY IN THE STATE AND HOW TO RECONCILE THE DESIRE FOR RECOGNIZING, MAINTAINING THE WATER RIGHT SYSTEM, AS WELL AS BE ABLE TO PROVIDE FLOOD PREVENTION AND GROUNDWATER RECHARGE IS GONNA, WAS AN ISSUE IN SB 1390 OF LAST YEAR, COULD CONTINUE TO BE A BIG ISSUE MOVING FORWARD.

NOTWITHSTANDING THE FACT GOVERNOR ISSUED AN EXECUTIVE ORDER SAYING AS MUCH WATER CAN BE DIVERTED, PUT BACK INTO THE GROUND, SHOULD BE JOB NUMBER ONE.

OF COURSE, THE WATER RIGHT SYSTEM POSES A BIG POTENTIAL OPPORTUNITY FOR MISCHIEF.

SO HOW DO WE BEST DEAL WITH THAT? SO WITH THAT MADAM PRESIDENT, I'M PREPARED TO CLOSE, GLAD TO, UH, ANSWER ANY QUESTIONS FROM COMMISSIONERS.

WOW.

IT'S LIKE WHACK-A-MOLE.

I DON'T KNOW HOW YOU DEAL WITH ALL THAT AT ONCE.

IT'S CRAZY.

WE, WE JUST ATTENDED FOUR OF US, THE URBAN WATER INSTITUTE CONFERENCE, UH, IN PALM SPRINGS AND HEARD SOME OF THIS, THE KERN COUNTY AND SIGMA AND ALL THAT AND, AND OTHER LEGISLATIVE UPDATE.

UM, THANK YOU FOR THAT REPORT.

WOW.

UH, IS THERE ANY PUBLIC COMMENT? ANY COMMISSIONER COMMENT? I JUST HAVE A QUICK QUESTION.

THANK YOU FOR THAT.

UM, THE VOLUNTARY AGREEMENTS ALWAYS, THAT SEEMS TO BE SOMETHING THAT'S OPPOSED BY TRIBES AND A LOT OF ENVIRONMENTAL GROUPS.

UM, CAN YOU EXPLAIN WHY SO THAT WE CAN BETTER UNDERSTAND THAT? BECAUSE THAT SEEMS LIKE REALLY WHERE THE, WHERE WE NEED TO GO WITH THAT.

RIGHT.

WELL, LET'S TAKE THE TRIBES FIRST.

UH, I THINK ONE OF THE REASONS IS THEY DON'T BELIEVE THEY'VE BEEN ADEQUATELY INVOLVED IN THE PROCESS.

AND ASSEMBLYMAN RAMOS FROM SAN BERNARDINO COUNTY IS GONNA CONTINUE TO PUSH FOR ENHANCED, UH, FOCUS ENGAGEMENT ON THE PART OF THE TRIBES, WHICH REALLY PUTS A LOT OF OTHER WATER RIGHT HOLDERS IN A POSITION.

OKAY.

WHAT DOES THAT MEAN? WE SOMEHOW GONNA PUT AT JEOPARDY THE, THE SYSTEM THAT WE UNDERSTAND PRETTY WELL AT THIS POINT.

SO IT'S A BIG CHALLENGE IS HOW TO MAKE SURE THAT THE TRIBAL INTERESTS ARE PART OF THE DISCUSSION WITHOUT UPENDING THE SYSTEM.

SO THAT WOULD BE THE SPONSOR OF THE TRIBE.

THE ENVIRONMENTAL PERSPECTIVE, THEIR VIEW IS THE MORE WATER YOU RUN OUT THE THE GOLDEN GATE, THE BETTER THE SYSTEM'S GONNA, WITHOUT LOOKING AT ISSUES LIKE PREDATION, HABITAT RESTORATION, WHICH NEED TO BE PART OF THE MIX.

SO IT'S NOT TOP DOWN.

ENVIRONMENTAL COMMUNITY'S NOT GONNA, LIKE VOLUNTARY AGREEMENTS REALLY CALL ON PEOPLE TO HAVE AN ETHOS THAT'S DEDICATED TO MEETING ALL THOSE VARIOUS SUBJECTIVES.

NOT ONLY WATER SUPPLY, BUT WATER QUALITY AND GETTING THE PARTIES TO WORK TOGETHER.

OTHERWISE, WE'RE LOOKING AT 10 YEARS OF LITIGATION.

SO THAT'S, THAT'S WHY THE GOVERNOR, PARTICULARLY SECRETARY CROWFOOT HAS BEEN BIG ON TRYING TO ADVANCE THAT AT THE WATER.

AND I KNOW THERE'S BEEN SOME DISCUSSION ON TERMS OF WITH TRIES, MAYBE SOME MITIGATION EFFORTS MM-HMM .

SO HOPEFULLY THAT'S MAYBE THE ROAD THAT WE'LL PROCEED ON.

UM, MY OTHER QUESTION IS ABOUT SITES MM-HMM .

WHERE DO YOU SEE SITES AT RIGHT NOW? SITES IS MOVING AHEAD.

UM, THE, THE GOVERNOR MADE IT ELIGIBLE FOR THE EXPEDITED CQA REVIEW PROCESS AND, UH, DISCUSSIONS GOING ON TO THE WATER BOARD NOW TO GET CONTROL THE WATER RIGHT.

AND DIVERSION PERMITS ARE ADOPTED.

SO IT'S, IT'S THE ONE THAT'S THE FURTHEST ALONG.

SURE.

AND SOME OF THE OPPOSITION, LIKE WITH TRIBES WILL BE THE SAME, A LOT OF THE SAME THINGS.

'CAUSE I, SAME I'VE HEARD FROM ONE OF THE TRIBES FROM UP NORTH, THE WINMAN WINTU ON THAT.

MM-HMM .

UH, VERY VOCAL, UH, AN OPPOSITION TO, TO TRIBES.

AND THEN LASTLY, I KNOW DIANA'S

[00:30:01]

UM, AND I KNOW SOME OF US HAVE MET WITH SOME OF OUR LOCAL ELECTED OFFICIALS AND WATER, AND THIS IS NOT A DING ON THEM, BUT WATER DOESN'T NECESSARILY ALWAYS SEEM TO BE AT THE TOP OF THEIR LIST.

I THINK THAT'S WHY DIANA'S TRYING TO GET A LOT OF US UP THERE.

UM, I'M SURE.

I'M JUST ASK, I GUESS RHETORICALLY ASKING YOU, I THINK YOU THINK THAT'S A GOOD IDEA THEN.

YEAH, ABSOLUTELY.

BUT YOU KNOW, I ALSO RECOMMEND THAT YOU SPEND TIME IN THE DISTRICT, RIGHT? WE, YEAH.

AS OPPOSED TO THE CAPITAL.

'CAUSE GENERALLY WHEN YOU'RE UP THERE, PARTICULARLY DURING HEAVY COMMITTEE SEASON, THEY'RE JUST NOT GONNA HAVE THE TENSION SPAN REALLY ABSORB WHAT YOU'RE SAYING.

SO, TIME IN THE DISTRICT OFFICE AND THEY'RE MORE RELAXED.

AND THE OTHER PART OF IT, IT'S NOT AN INDICTMENT OF THE WATER COMMUNITY, IT'S ACTUALLY EVERYTHING IS DONE SO WELL, UH, THAT GENERALLY LEGISLATURE GOES, UNLESS IT'S LIKE AN EMERGENCY OR A, UNLESS THERE'S AN EMERGENCY, RIGHT.

LET THE WATER PEOPLE DO WHAT THEY WANT TO DO.

AND, UH, LET US KNOW IF THERE'S A CRISIS.

OKAY.

I THINK THE SACRAMENTO TRIPS ARE GOOD 'CAUSE YOU'RE THERE.

SO THAT'S, THAT'S A GOOD THING.

UH, BUT THANK YOU, THANK YOU FOR THAT REPORT.

WELCOME.

ANY OTHER COMMENT? HEY JACK, WE APPRECIATE YOU.

THANK YOU VERY MUCH.

THANK YOU SO MUCH.

UM, DO I HAVE A MOTION TO RECEIVE AND FILE? MOTION TO RECEIVE AND FILE.

THANK YOU.

I HAVE A MOTION AND A SECOND.

ALL IS IN FAVOR? AYE.

ANY OPPOSED? MOTION CARRIES.

THANK YOU.

OKAY,

[5. 25-54561 Recommendation to receive and file the Long Beach Public Utilities Department’s Business Plan Update.       Suggested Action: Approve recommendation. ]

JENNIFER ROJAS COMMISSIONERS.

SO WOULD, UH, BEN WOULD LIKE TO SAY A FEW WORDS FIRST? YEAH.

UM, JENNIFER AND I HAD HAD TAG TEAMED THIS.

UM, SO INTRODUCTION TO THE FISCAL YEAR 25 BUSINESS PLAN AND CONVERSATIONS THAT I'VE HAD WITH YOU, UH, IN DIFFERENT FORUMS OVER TIME.

I WAS TALKING ABOUT THIS ELEMENT ABOUT HARMONIZING THE BUDGET PROCESS, WHICH IS THE MONEY WE INTEND TO SPEND.

AND THEN BEING ABLE TO COMMUNICATE CLEARLY TO DIFFERENT AUDIENCES.

HOW DO WE INTEND TO SPEND THAT MONEY AND TO THE POINT OF ACHIEVING WHAT GOALS OR WHAT TARGETED OBJECTIVES.

AND THAT AT ITS CORE IS THE ESSENCE OF A BUSINESS PLAN.

NOW THAT BEING SAID, FISCAL YEAR 25 BUDGET WAS ADOPTED, AND WE'RE NOW HEADED TOWARDS OUR SIX MONTH, UH, SECOND QUARTER ENDING OF IT.

SO PUTTING A BUSINESS PLAN TOGETHER HERE IS A LITTLE BIT RETROACTIVE.

AT THE SAME TIME, AS I MENTIONED IN SOME CONVERSATIONS, IT WAS IMPORTANT TO UNDERTAKE THAT EFFORT.

AS FAR AS THE BUSINESS PLAN IS CONCERNED ITSELF, WHAT YOU'RE GOING TO SEE IS AN EXTENSIVE AMOUNT OF WORK.

UH, YOU MAY HEAR A REFERENCE TO BALANCED SCORECARD.

BALANCED SCORECARD AS A CONCEPT COMES FROM THE HARVARD BUSINESS SCHOOL.

UM, IT IS A WELL-WORN MODEL TO DEVELOP AN APPROACH TO ORGANIZING A BUSINESS'S OBJECTIVES.

IT HAS DEMONSTRATED OPPORTUNITIES TO CHARACTERIZE IT IN THE PUBLIC SECTOR, WHICH IS A LITTLE BIT DIFFERENT THAN PRIVATE SECTOR BUSINESS.

I SHOW THESE BOOKS TO HIGHLIGHT ONLY THE CONCEPT IN THE END.

THE ACTUAL ACT OF PUTTING IT TOGETHER IS AN INCREDIBLE EFFORT OF STAFF, WHICH YOU'RE GOING TO SEE SOME OF THE RESULTS HERE.

SO I'M GONNA TURN IT BACK OVER TO JENNIFER.

UM, I'D LIKE TO MAKE SOME CLOSING COMMENTS ONCE WE'RE DONE WITH THE ENTIRE PRESENTATION.

JENNIFER, THANK YOU, A**L.

ALL RIGHT.

SO, UH, THANK YOU, UH, PRESIDENT MCGUIRE AND COMMISSIONERS FOR TODAY'S PRESENTATION.

I'M GOING TO HIGHLIGHT THE KEY COMPONENTS OF THE BUSINESS PLAN AND FAMILIARIZE YOU WITH THE FRAMEWORK WITH WHICH WE'LL COMMUNICATE THE BUSINESS PLAN.

OOPS.

THERE WE GO.

.

OKAY.

SO, SO TO START WITH, I THOUGHT IT WOULD BE HELPFUL TO TALK ABOUT THE PURPOSE OF THE BUSINESS PLAN.

AND ESSENTIALLY IT'S A COMMUNICATIONS TOOL BETWEEN THE BOARD, THE GENERAL MANAGER AND STAFF.

AND SO THE BUSINESS PLAN, IT OUTLINES SPECIFIC OBJECTIVES THAT THE UTILITIES WILL BE FOCUSED ON FOR THE UPCOMING YEAR.

IT PROVIDES BENCHMARKS OR METRICS THAT WE WILL USE TO TRACK OUR PROGRESS.

AND WE CAN ALSO USE THOSE TO REPORT BACK TO YOU ON HOW WE ARE DOING.

THE FRAMEWORK OF THE BUSINESS PLAN PROVIDES CONTINUITY FROM YEAR TO YEAR, BUT YET IT'S FLEXIBLE ENOUGH SO THAT WE CAN RESPOND TO EMERGING NEEDS AND THE CHANGING LANDSCAPE.

AND FINALLY, UH, THE BUSINESS PLAN IS, IT WORKS IN ALIGNMENT WITH THE OTHER DOCUMENTS THAT ARE IMPORTANT TO THE UTILITY.

SO

[00:35:01]

IT WORKS IN ALIGNMENT WITH THINGS LIKE THE, LIKE ANTO MENTIONED, THE YEARLY, THE YEARLY BUDGET, CAPITAL IMPROVEMENT PLAN, AND EVENTUALLY THE STRATEGIC PLAN.

SO THE APPROACH THAT THE BUSINESS PLAN IS BASED ON IS THE BALANCED SCORECARD APPROACH.

AND A BALANCED SCORECARD INTEGRATES ALL THE COMPONENTS IN A VISUAL ALIGNMENT, UM, SUCH THAT, THAT TARGETS AND GOALS ARE DEFINED BY MEASURES AND ACTIONS.

AND THAT'S ALL WITHIN A BROADER CONTEXT, BROADER CONTEXT OF OBJECTIVES AND INITIATIVES.

SO I'LL DEFINE ALL FOUR OF THESE COMPONENTS THROUGHOUT THIS MORNING'S PRESENTATION.

BUT FOR, TO, FOR TODAY, I'M GONNA FOCUS MAINLY ON THIS LEFT HALF OF THESE ILLUSTRATION.

SO THE OBJECTIVES AND THE INITIATIVES.

AND THEN AT THE NEXT BOARD MEETING ON MARCH 20TH, I WILL FOCUS MORE ON THE RIGHT SIDE OF THE ILLUSTRATION, WHICH IS THE MEASURES AND ACTIONS AND TARGETS AND GOALS.

SO THERE WE GO.

SO, OBJECTIVES AND INITIATIVES.

OBJECTIVES ARE BROAD AREAS THAT WE WILL FOCUS ON FOR THE YEAR.

SO WE HAVE, FOR THIS, FOR THIS, UH, BUSINESS PLAN, WE HAVE A CUSTOMER FOCUS, A FINANCIAL FOCUS, INTERNAL OPERATIONS, AND WORKPLACE CULTURE.

NOW, I WANNA POINT OUT THAT THESE FOUR OBJECTIVES ORDER DOES MATTER 'CAUSE THEY BUILD ON EACH OTHER.

SO, FOR INSTANCE, IF WE WANNA BE FOCUSED ON SERVING THE CUSTOMER, WE HAVE TO BE FINANCIALLY HEALTHY.

AND IN ORDER TO BE FINANCIALLY HEALTHY, WE HAVE TO HAVE INTERNAL OPERATIONS THAT ARE EFFICIENT AND PRODUCTIVE.

AND THEN THE FOUNDATION OF ALL OF THIS IS OUR WORKFORCE.

SO THAT'S WORKPLACE CULTURE.

NOW, WITHIN EACH OF THESE OBJECTIVES, WE HAVE INITIATIVES.

AND INITIATIVES ARE ACTIVITIES THAT ARE MEANT TO DRIVE, UH, PROGRESS IN EACH OF THE OBJECTIVES.

SO LET'S LOOK A LITTLE CLOSER AT EACH OF THESE, UM, OBJECTIVES AND THEIR CORRESPONDING INITIATIVES.

SO IF THE BUSINESS PLAN IS A WRITTEN DOCUMENT, THEN WE SHOULD HAVE A NARRATIVE THAT IS ASSOCIATED WITH EACH OF THE FOUR OBJECTIVES.

SO THE FIRST OBJECTIVE, THE CUSTOMER FOCUS, UM, A POTENTIAL OBJECTIVE STATEMENT WOULD BE, WE ARE COMMITTED TO SERVING OUR CUSTOMERS AND MEETING THE EVOLVING NEEDS OF OUR COMMUNITIES BY PROVIDING RELIABLE SERVICE AND DELIVERING VALUE TO OUR RATE PAYERS.

SO WITHIN THAT OBJECTIVE, HOW ARE WE GONNA DO THAT? WE'RE GONNA DO THAT WITH THE INITIATIVES.

SO THE INITIATIVES WOULD BE LIKE PROVIDING AFFORDABLE RATES, MAKING SURE THAT OUR INFRASTRUCTURE IS RELIABLE AND RESILIENT, UH, ADVOCATING FOR INNOVATIVE PROGRAMS TO BENEFIT OUR CUSTOMERS, AND ALWAYS PROVIDING SAFE WATER AND GAS SERVICE FOR THE FINANCIAL FOCUS.

AND OBJECTIVE STATEMENT MIGHT BE, WE UPHOLD FINANCIAL INTEGRITY AND MEET CURRENT OPERATIONAL AND CAPITAL INVESTMENT NEEDS WHILE MANAGING RISK AND ENSURING LONG-TERM AFFORDABILITY THROUGH A SUSTAINABLE FINANCIAL FRAMEWORK.

AND HOW DO WE DO THAT? WE DO THAT BY HAVING SUSTAINABLE FINANCES.

WE'RE GONNA MINIMIZE VOLATILITY BY HAVING A LONG RANGE FINANCE PLAN.

AND WE ARE GONNA PROVIDE FAIR AND, UM, EFFICIENT RATES, WHICH ARE GONNA OPTIMIZE OUR COST OF SERVICE FOR INTERNAL OPERATIONS.

WE ARE AN ORGANIZATION COMMITTED TO CONTINUOUS IMPROVEMENT, DRIVING INNOVATIVE SOLUTIONS AND EFFICIENTLY, EFFICIENTLY COORDINATING WITH INTERNAL TEAMS AND EXTERNAL STAKEHOLDERS THROUGH CONSTRUCTIVE TEAMWORK AND THE STRATEGIC USE OF TECHNOLOGY.

WE'RE GONNA ACCOMPLISH THIS OBJECTIVE BY FOCUSING ON EXCELLENCE AND IMPROVEMENT, HAVING POSITIVE COLLABORATION WITH OUR COLLEAGUES, BOTH INTERNAL AND EXTERNAL.

WE'RE GONNA HAVE PROACTIVE AND INNOVATIVE PROGRAMS, AND WE ARE GONNA MAKE SURE THAT OUR INFORMATION SYSTEMS AND OUR DATA ARE TRANSPARENT SO THAT WE CAN USE THOSE TO, FOR ACCOUNTABILITY TO THESE OBJECTIVES.

AND THEN FINALLY, WORKPLACE CULTURE.

OUR WORK, OUR WORKERS ARE THE BACKBONE OF OUR ORGANIZATION, AND WE ARE COMMITTED TO ATTRACTING, RETAINING, AND DEVELOPING A SKILLED WORKFORCE THAT REFLECTS OUR COMMUNITIES, WHILE FOSTERING GREATER UNDERSTANDING AND AWARENESS ACROSS ALL LEVELS OF THE ORGANIZATION.

WE'RE GONNA ACHIEVE THIS BY MAKING SURE THAT WE DEVELOP OUR EMPLOYEES IN THEIR SKILLS AND THEIR COMPETENCIES.

WE'RE GONNA FOCUS ON EMPLOYEE RETENTION.

WE'RE GONNA

[00:40:01]

UM, I WENT THROUGH IT QUICKLY, BUT, UM, BUT I HOPE THAT GIVES YOU A GOOD OVERVIEW OF WHAT AN OBJECTIVE IS AND WHERE THEIR CORRESPONDING INITIATIVES ARE.

THE FINAL TWO COMPONENTS OF THE BUSINESS PLAN, AND THEREFORE THE BALANCED SCORECARD, WHICH IS THE RIGHT SIDE OF THAT ILLUSTRATION, I I SHOWED YOU A FEW SLIDES AGO, ARE THE MEASURES AND ACTIONS AND THE TARGETS AND GOALS.

JUST FOR COMPLETENESS, UM, I'M GONNA DEFINE EACH OF THESE.

SO, MEASURES AND ACTIONS ARE ACTIVITIES TO PROMOTE INITIATIVES AND ENSURE OBJECTIVES ARE BEING ADDRESSED.

SO EACH OF THESE COMPONENTS FOLLOWS FROM ONE ANOTHER.

SO IF WE THINK ABOUT THE OBJECTIVE OF THE CUSTOMER, AND THEN WITHIN THAT OBJECTIVE, WE HAVE THE INITIATIVE, SAFE WATER AND GAS, A POSSIBLE MEASURE TO ACHIEVE THAT INITIATIVE MIGHT BE, UH, ENSURE THAT ALL INFRASTRUCTURE CONFORMS TO STANDARDS THROUGH PROACTIVE MANAGEMENT, ONGOING MAINTENANCE, TIMELY UPGRADES, AND PROMPT EMERGENCY RESPONSE TO MEET CUSTOMER NEEDS.

AND THE CORRESPONDING TARGET, OR THE BENCHMARK THAT WE WILL USE TO SEE HOW WE'RE DOING AND TRACK PROGRESS MIGHT BE, UH, ENSURING A HUNDRED PERCENT REGULATORY COMPLIANCE OF THE WATER QUALITY MONITORING PROGRAM.

SO AGAIN, THIS IS THE BENCHMARK THAT WE'LL BE REPORTING BACK TO YOU SO THAT YOU KNOW HOW WE'RE DOING ON EACH OF THESE INITIATIVES CORRESPONDING TO THE BROADER CONTEXT OF OBJECTIVES.

SO FOLLOWING THIS EXAMPLE, IF WE WERE TO PUT THAT EXAMPLE AND PUT IT IN THE BALANCED SCORECARD, IT MIGHT LOOK SOMETHING LIKE THIS.

AND AGAIN, THIS IS JUST ONE EXAMPLE.

UM, THE OVERALL BUSINESS PLAN AND BALANCED SCORECARD IS GONNA HAVE MANY TARGETS AND MANY, UH, MEASURES AND ACTIONS THAT TIE BACK TO THE INITIATIVES AND TO THE OBJECTIVES.

BUT THIS IS TO GIVE YOU A VISUAL OF HOW THAT WOULD LOOK ON A BALANCED SCORECARD.

SO RIGHT NOW, UH, THE BUSINESS, UH, PLANNING GROUP IS WORKING ON FINALIZING THE TARGETS AND GOALS AND CONFIRMING WITH ALL THE WORK GROUPS THAT THAT'S, YOU KNOW, THAT THEY ARE IN THE RIGHT PLACE AND CORRESPONDING TO THE RIGHT MEASURE.

SO FOR OUR NEXT STEPS AT THE NEXT BOARD MEETING, WE'LL HAVE A COMPLETED BALANCE SCORECARD.

UM, AND THEN WE'LL, WE'LL BE OUTLINING MORE OF THE MEASURES AND THE INITIATIVES AS WELL AS THE TARGETS AND GOALS.

AND WE'LL ALSO PROPOSE A SCHEDULE WITH WHICH WE REPORT BACK TO YOU, UM, ON BUSINESS PLAN UPDATES.

AND THEN WE ALSO TALK ABOUT TURNING PLANS INTO ACTION.

SO THAT CONCLUDES MY PRESENTATION, BUT BEFORE I OPEN IT UP FOR QUESTIONS, I'D LIKE TO JUST RECOGNIZE THE MEMBERS OF THE, UH, BUSINESS PLAN PLANNING GROUP THAT ARE HERE IN THE AUDIENCE.

SO IF YOU DON'T MIND STANDING UP WHEN I CALL YOUR NAME.

UM, CHRIS PINKER, LEE Y ZANG, UH, CHRIS, UH, UH, CHUCK CARDO.

CHUCK CARDO, UM, , FIRST OF ALL, SAN AND SORRY, AND JOSEPH.

UH, AND THEN WAYNE IS HERE TOO WITH WAYNE.

WAYNE.

AND I THINK I GOT EVERY, OH, DANIEL GUTIERREZ THERE.

YOU'RE .

WOW.

I THINK I GOT EVERYBODY.

ALRIGHT, THAT'S THE BUSINESS PLAN WORKING GROUP.

ALRIGHT, THANK YOU.

WELL, THANK YOU ALL FOR YOUR WORK.

YES.

I'M NOW AVAILABLE FOR ANY QUESTIONS.

I DO HAVE ONE.

OKAY.

SO IN TERMS OF THE DOCUMENT AND YOUR PROCESS, UM, SO THESE OBJECTIVES LOOK ORGANIC, LIKE THEY FLOW FROM YOUR MISSION, THE MISSION, BUT ARE THEY NEW OBJECTIVES THAT THE COMMITTEE SET? WHERE DID THEY PRE-EXIST? HOW, WHAT WAS YOUR PROCESS TO COME UP WITH THESE OBJECTIVES? SO WE WORKED WITH, UM, WITHIN THE GROUP AS WELL AS IN CONVERSATION WITH ANOL TO ESTABLISH THE OBJECTIVES.

OKAY.

SO THAT, ARE THEY NEW? UM, THEY'RE, WELL, THE BUSINESS PLAN, NO, THEY'RE, THEY'RE NOT NEW.

WE'VE BEEN ALWAYS FOCUSED ON THE CUSTOMER.

WE'RE ALWAYS FOCUSED ON FINANCES.

WHAT'S NEW IS THAT WE DON'T HAVE, WE DIDN'T PUT PUT IT INTO A BUSINESS PLAN BEFORE.

OKAY.

SO THAT'S WHAT'S NEW.

BUT, UM, BUT WE'VE ALWAYS, THOSE FOUR THINGS WE, WE DO ALL THE TIME WELL THERE, RIGHT.

READING THESE OBJECTIVES, YOU'RE LIKE, YES, YES, YES.

YOU KNOW, THAT'S WHAT WE DO.

SO THANK YOU FOR THAT.

UM, UH, ARE THERE ANY, UH, PUBLIC COMMENT? ANY COMMISSIONER COMMENT? YOU GO AHEAD.

YEAH.

UH, I THINK THIS IS GREAT.

I'M SUPER EXCITED, UH, AS A BUSINESS SCHOOL GRADUATE.

THIS IS SOMETHING THAT ANYBODY WHO KNOWS

[00:45:01]

THANK YOU TO EVERYBODY THAT'S WORKED ON THIS PROJECT.

I KNOW IT'S A, IT'S A HEAVY LIFT TO GO FROM, FROM, UH, JUST CONCEPT TO, TO PUTTING IT INTO PLACE.

SO GOOD JOB ON, ON THAT AS WELL.

UM, GREAT QUESTION ON THE OBJECTIVE ESTABLISHED.

I APPRECIATE THAT.

UH, LOOKING FORWARD TO SEEING MORE OF THIS IN THE FUTURE.

UM, CURIOUS IF THERE IS A, A, A THOUGHT TO INCORPORATE, UH, OBJECTIVES, UH, AT A MINIMUM AND MAYBE INITIATIVES, UH, ON THE AGENDA.

SO AS WE'RE, AS WE'RE LOOKING AT VOTING, AT VOTING ON PARTICULAR ITEMS, OR, OR, YOU KNOW, AS A BOARD WE CAN MAYBE SEE THE BUSINESS PLAN IN ACTION AS IT'S BEING, YOU KNOW, AS IT AS IT'S BEING AGENDIZED.

JUST A SUGGESTION OR A THOUGHT.

I KNOW IT WOULD HELP, UH, UH, THOSE OF US THAT DON'T DEAL WITH A BUSINESS PLAN ON A DAILY BASIS, IT WOULD JUST KIND OF HELP KEEP BOARD STATE THAT, THAT'S A GREAT SUGGESTION.

UM, A COUPLE OF COMMENTS.

YOU, YOU HAD ASKED PRESIDENT MCGUIRE ABOUT THE OBJECTIVES.

AND THE FIRST THOUGHT THAT I HAD IN MIND AS YOU WERE HAVING THAT CONVERSATION WAS THE, THE OBJECTIVES ARE NEW IN THE SENSE THAT HAVING WRITTEN THEM DOWN, THEY HAVEN'T BEEN WRITTEN DOWN LIKE THAT BEFORE.

THEY'RE NOT NEW IN THE SENSE THAT IT'S AN EFFORT, AN INCREDIBLE EFFORT, I MIGHT ADD BY THE STAFF TO TRANSLATE THE BUDGET THAT'S ALREADY BEEN APPROVED TO TRANSLATE THEIR DAILY ACTIVITIES, WHICH THEY KNOW AND ARE FAMILIAR WITH.

AND TO TRANSLATE THAT COLLECTIVELY INTO SOMETHING THAT CAN BE DESCRIPTIVE, THAT CAN THEN ACTUALLY TRIGGER ADDITIONAL DETAIL AND GOALS AND COMMUNICATE THE WORK THAT, THAT WE HAVE.

SO IT, IT'S TRANSLATION AND IN THAT SENSE, THAT EFFORT IS INDEED NEW.

UM, TO YOUR POINT, COMMISSIONER SCOTT, IT IS ENTIRELY, UM, STRUCTURALLY APPROPRIATE TO HAVE THIS ELEMENT THAT IF YOU MAKE THIS EFFORT TO DEVELOP THE BUSINESS PLAN IN, IN THE COURSE OF DEVELOPING BUDGET, THEN INDEED, AS YOU GO INTO QUARTERLY REPORTING, AS YOU GO INTO SIGNIFICANT ACTIONS BY THE BOARD, IT IS IMPORTANT TO HARMONIZE THAT AND SAY, YES, THIS IS IN KEEPING WITH WHAT WE SAID IN THE BUSINESS PLAN WOULD BE ONE OF THESE KEY OBJECTIVES.