Link


Social

Embed


Download

Download
Download Transcript


HI.

GOOD MORNING,

[00:00:01]

LONG BEACH UTILITIES.

SURPRISED TO SEE SO MANY PEOPLE HERE TODAY.

UM, TODAY IS THURSDAY, MARCH 13TH IS THE FIRST, UH, INFRASTRUCTURE MEETING, UH, INFRASTRUCTURE COMMITTEE MEETING OF FISCAL YEAR 25.

UM, CALL ON ALONG FOR ROLL CALL CHAIR SCOTT

[ROLL CALL]

HERE.

MEMBER MCGUIRE HERE.

OKAY, WE HAVE A QUORUM.

THANK YOU.

UM, BEFORE WE START OUR REGULAR AGENDA, I JUST HAVE A BRIEF, UH, INTRODUCTION, UH, FOR OUR FIRST PRESENTATION.

SO, UH, PRESENTATION ON FIRE HYDRANT OPERATIONS.

SO I'M JUST GONNA READ THIS.

THE FIRE HYDRANT IS ONE OF THE MOST IMPORTANT PARTS OF THE WATER DISTRIBUTION SYSTEM, BUT IS OFTEN ONE OF THE MOST IGNORED HYDRANTS, STAND IDLE FOR LONG PERIODS OF TIME, AND ARE SUBJECT TO THE EFFECTS OF WEATHER AND THE ELEMENTS, AND ARE VULNERABLE TO DAMAGE.

YET THEY'RE EXPECTED TO WORK RELIABLY WELL IN EMERGENCIES TO ENSURE THAT HYDRANTS WILL OPERATE CORRECTLY WHEN THEY'RE NEEDED.

THE PROPER PROCEDURES MUST BE FOLLOWED WHEN THEY'RE INSPECTED, INSTALLED, TESTED, AND MAINTAINED.

UH, ACCORDING TO THE NATIONAL FIRE PREVENTION, UH, NATIONAL NFPA NATIONAL FIRE PREVENTION ASSOCIATION, YES, UH, AND THE AMERICAN WATERWORKS ASSOCIATION, UH, MANUAL ON INSTALLATION, FIELD TESTING AND MAINTENANCE OF FIRE HYDRANTS.

ALL HYDRANTS SHOULD BE INSPECTED REGULARLY, AT LEAST ONCE A YEAR TO ENSURE THEIR SATISFACTORY OPERATION.

UH, RECENT EVENTS HAVE ILLUSTRATED TO ME THE IMPORTANCE OF THIS RECOMMENDATION.

UH, FOLLOWING THE TRAGIC FIRES IN LOS ANGELES.

A K CAL NEWS INVESTIGATION RECENTLY FOUND THAT MORE THAN 1300 FIRE HYDRANTS NEED MAINTENANCE OR OUT OF SERVICE ACROSS THE LOS ANGELES.

UH, JUST LAST MONTH, LONG BEACH FIREFIGHTERS FROM NINJA FIVE TRUCK 17 BATTALION TWO RESPONDED TO AN AUTOMATIC AID REQUEST TO ASSIST ORANGE COUNTY FIRE AUTHORITY IN ROSSMORE WERE A MULTI-ARM HOUSE FIRE.

DURING THE EARLY STAGES OF FIGHTING THE FIRE, THE HYDRANT INITIALLY USED AS PRIMARY FIRE FLOW SHEED UNDER NORMAL OPERATION, CAUSING FIRE ATTACK TEAMS TO LOSE THEIR WATER SUPPLY.

UH, ONE YEAR AGO, UH, FIRE DEPARTMENT OPERATIONS LEARNED OF AN ISSUE WITH REPLACEMENT HYDRANTS IN OUR, IN OUR CITY IN LONG BEACH.

AN ALLCON EMAIL WAS URGENTLY RELEASED TO FIRE PERSONNEL THAT STATED IN PART QUOTING HERE, LONG BEACH UTILITIES WATER DEPARTMENT HAS BEEN INSTALLING A DIFFERENT MODEL OF HYDRANT THAN WHAT HAS NORMALLY BEEN USED.

THESE NEW REPLACEMENT HYDRANTS JONES MODEL HAVE BEEN OUTFITTED WITH VALVE STEMS, WHICH DO NOT FIT SOME OF OUR CURRENT HYDRANT WRENCHES.

AND THIS WAS IN ALL BOLD.

THIS, THIS NEXT STATEMENT, THESE NEW HYDRANTS ARE NOT IN ONE PARTICULAR PART OF THE CITY, AND THEY ARE CURRENTLY IN OPERATION.

SO FIRE GROUND OPERATIONS ARE DYNAMIC AND COMPLICATED AT BEST.

THE NATIONAL FIRE RESEARCH LABORATORY HAS FOUND THAT WITH, UH, A FIRE WITHIN A STRUCTURE DOUBLES IN SIZE EVERY MINUTE.

THEREFORE, IN ORDER TO PROTECT PROPERTY, SAVE LIVES, TIME IS OF THE ESSENCE.

RAPID DEPLOYMENT AND AGGRESSIVE ACTION ARE KEY NON-STANDARD FIRE HYDRANT, OR ONE THAT IS BROKEN, OR ONE THAT IS OUT OF SERVICE DELAYS, RESCUE AND SLOWS FIRE ATTACK, AND ULTIMATELY HAMPERS OUR FIREFIGHTERS.

SO WITH THAT, WE'RE GOING TO INTRODUCE DIANA TANG, WHO

[1. 25-54650 Recommendation to receive an overview of the Fire Hydrant Operations and Maintenance Procedures.       Suggested Action: Receive report. ]

IS GOING TO PRESENT, UH, GIVE US A OVERVIEW OF FIRE HYDRANT OPERATIONS AND MAINTENANCE PROCEDURE.

MORNING.

GOOD MORNING, COMMISSIONER SCOTT AND COMMISSIONER MCGUIRE.

THANK YOU FOR THIS CONVERSATION TODAY.

FIRE HYDRANTS ARE, ARE ABSOLUTELY A VERY IMPORTANT PART OF OUR WATER DISTRIBUTION SYSTEM AND ARE INCREASINGLY IN THE NEWS, UM, GIVEN THE THE WILDFIRE SITUATION IN LA COUNTY EARLIER THIS YEAR.

UM, IN THIS PRESENTATION, WE'LL TALK A LITTLE BIT ABOUT, UM, THE FIRE HYDRANT PURPOSES.

OF COURSE, FIREFIGHTING IS THE MOST COMMONLY KNOWN PURPOSE AND THE MOST URGENT PURPOSE WHEN, WHEN FIRE HYDRANTS ARE CALLED UPON.

UM, BUT HYDRANTS ARE ALSO A PART OF OUR LARGER WATER DISTRIBUTION SYSTEM.

AND SO IN THE SECOND PICTURE HERE, YOU'LL SEE, UH, ONE OF OUR WATER UTILITY MECHANICS, UM, TURNING A, A VALVE IN THE STREET, WHICH IS EVENTUALLY CONNECTED TO THE SAME WATER DISTRIBUTION SYSTEM THAT SUPPLIES THE FIRE HYDRANT.

UM, IN THIS THIRD PICTURE, YOU'LL SEE A TEMPORARY WATER SERVICE THAT, UM, WAS CONNECTED FOR CONSTRUCTION.

YOU'LL SEE THAT IT'S CONNECTED TO A TWO AND A HALF INCH, UM, NUT, RATHER THAN THE FOUR AND A HALF INCH THAT IS USED FOR FIRE FIREFIGHTING.

SO GIVEN THE, UH, AMOUNT OF WATER PRESSURE THAT IS IN OUR SYSTEM, THESE HYDRANTS, UM, CAN BE DUAL PURPOSE USE WITHOUT IMPACT TO WATER PRESSURE FOR THE TYPE OF SERVICE THAT IS NEEDED.

AND THEN HERE ON THIS, UM, LAST SLIDE HERE, UH, I'M SORRY, LAST PHOTO.

UM, YOU'LL SEE, AND LEMME SEE IF I CAN, HERE WE GO.

HERE, UH, IS A PHOTO OF ACTUALLY THE MAIN BREAK FROM ORANGE AVENUE BACK IN OCTOBER, 2024.

UH, AND WHEN WE HAD WATER SIT IN OUR SYSTEM FOR A LITTLE BIT LONGER THAN WE WOULD NORMALLY, LIKE, UM, THE WATER CAN BE A A OF A COLOR.

[00:05:01]

SO HERE, WATER WAS FLOWING AND YOU MIGHT'VE HEARD THAT WATER WAS COMING OUT BROWN FROM THE TOP.

WELL, THAT'S BECAUSE THERE WAS SEDIMENT, UM, IN THE PIPES.

WHAT WE DO AT THE FIRE HYDRANTS WHEN THIS HAPPENS, UM, IS FLUSH IT.

AND, UH, AND SO NOW WITH A DEGREE OF FLUSHING, YOU'LL, YOU CAN SEE THAT THE WATER IS NOW FLOWING CLEAR AS YOU WOULD NORMALLY EXPECT IT TO FLOW FROM A FIRE HYDRANT OR YOUR TAP OR WHAT HAVE YOU.

SO THESE ARE EMERGENCY OPERATIONS THAT WE DO, UM, THAT WE USE FIRE HYDRANTS FOR.

AND THEN ON A ROUTINE BASIS, WE ALSO CONDUCT THIS TYPE OF FLUSHING SIMPLY TO MAINTAIN WATER QUALITY IN OUR WATER DISTRIBUTION SYSTEM PER STATE REGULATIONS.

SO THOSE ARE THE FOUR MAIN PURPOSES OF OUR FIRE HYDRANT.

OF COURSE, FIREFIGHTING AS THE MAIN ONE, UM, BUT THERE ARE WATER QUALITY COMPONENTS AND, UM, WATER DISTRIBUTION COMPONENTS TO IT AS WELL.

UM, THANK YOU COMMISSIONER SCOTT FOR THE MENTION OF THE NATIONAL FIRE PREVENTION ASSOCIATION STANDARDS.

UH, WE FOUND THAT IT'S A FIVE YEAR INSPECTION CYCLE.

SO WE WOULD BE INTERESTED TO, UM, SEE, UM, WHERE YOU MIGHT'VE SEEN ONE OF THE FIVE YEAR INSPECTION CYCLE ALIGNS WITH THE STATE WATER RESOURCES CONTROL BOARD, UM, RECOMMENDATION FOR THE FIVE-YEAR CYCLE AS WELL.

AND THAT'S, UH, THAT EACH WATER DISTRIBUTION SYSTEM IS REQUIRED TO INSPECT, AS WE UNDERSTAND IT, ALL OF OUR FIRE HYDRANTS WITHIN A FIVE-YEAR PERIOD.

AND SO FOR LONG BEACH, UM, THIS IS OUR MAP AND IT SHOWS THAT FIVE-YEAR CYCLE.

UM, WE BEGAN A NEW CYCLE IN FY 25 AND, UM, WE DO THEM BY QUADRANTS, UM, IN OUR SYSTEMS. AND THESE AREAS ARE DELINEATED BASED ON OUR PIPELINE, BASED ON OUR PIPELINE SYSTEM BECAUSE, UM, FIRE HYDRANTS ARE, AGAIN, PART OF OUR, OUR PIPELINE SYSTEM.

AND SO THEY FOLLOW, UM, WHERE PIPELINES ARE AND THE ROUTES THAT THE PIPELINES GO IN OUR WATER DISTRIBUTION UNDERGROUND, THEY'RE PROBABLY THE MOST VISIBLE PART OF OUR, OUR WATER DISTRIBUTION SYSTEM BECAUSE THEY DO SIT ABOVE GROUND, UM, AND WE ARE CONSTANTLY INSPECTING THEM THROUGHOUT THE CITY OVER A FIVE YEAR PERIOD.

UM, AND, AND THAT IS IN ACCORDANCE WITH WHAT WE BELIEVE ARE INDUSTRY STANDARDS.

UH, WE ALSO DO ON DEMAND INSPECTIONS.

SO, UM, EVERY SO OFTEN WE'LL GET A CALL FROM EITHER THE FIRE DEPARTMENT OR A MEMBER OF THE PUBLIC, AND THEY WILL SAY, MY FIRE HYDRANT LOOKS CORRODED, UM, OR MY FIRE HYDRANT LOOKS DAMAGED.

AND IN THOSE CASES, WE ARE OUT THERE WITHIN, UM, USUALLY THE SAME DAY OR MAYBE THE NEXT DAY TO INSPECT THAT HYDRANT.

AND, AND SO TO HAVE THAT WORK DONE, UH, ANYONE IS WELCOME TO CALL 5 6 2 5 7 0 2 3 9 0.

THIS IS THE SAME NUMBER THAT WE USED DURING OUR BOIL WATER.

UM, NOTICE THE NUMBER THAT WE GIVE TO CUSTOMERS.

THIS IS THE SAME NUMBER THAT WE PUBLISH FOR IF CUSTOMERS, UM, BELIEVE THAT THEY HAVE A LEAK OR THEY SEE A LEAK, UM, IN THE STREET, AND THEY, UH, WOULD LIKE US TO GO OUT TO TAKE A LOOK.

SO THAT NUMBER IS ANSWERED 24 7.

UM, DURING THE DAY, WE HAVE, UH, WATER SPECIFIC EMPLOYEES WHO ANSWER THAT NUMBER.

AND, UH, AFTER ABOUT 7:00 PM THE CALLS GET TRANSFERRED OVER TO OUR GAS DISPATCHERS WHO ARE ALSO TRAINED TO TAKE THESE TYPES OF CALLS AND DISPATCH RESOURCES, UM, SHOULD THEY BE NEEDED URGENTLY.

HERE WE HAVE, UM, OUR FIRE FIRE HYDRANT INSPECTION PROGRAM.

AGAIN, THIS IS A FIVE YEAR PROGRAM, AND OVER THE COURSE OF FIVE YEARS, WE INSPECT ALL 7,000 HYDRANTS IN OUR SYSTEM.

UM, HERE'S, UH, A PICTURE OF A HYDRANT THAT WE DID VERY RECENTLY.

THIS IS THE HYDRANT THAT MOST PEOPLE CONSIDER, UM, TO BE A CRITICAL PART OF OUR FIREFIGHTING SYSTEM.

UM, I ALSO WANNA POINT OUT THIS, UM, WE CALL IT THE FOOT VALVE.

UM, AND THIS CAN HERE IS ACTUALLY VERY CLOSELY LOCATED TO THE HIGHER HYDRANT IN SOME OF THE NEWER SYSTEMS. YOU'LL SEE THIS, UM, FURTHER OUT INTO THE STREET, AND I CAN TALK A LITTLE BIT ABOUT THAT, UM, LATER.

BUT JUST WANTED TO MENTION THAT EVERY FIVE YEARS WE VISUALLY AND OPERATIONALLY INSPECT ALL 7,000 HYDRANTS.

AND WE DO THIS BY TURNING ALL OF THE VALVE STEMS TO CHECK FOR WATER PRESSURE.

UM, WE VISUALLY INSPECT THE HYDRANT FOR, UM, FOR INTEGRITY OF THE ACTUAL PIECE OF INFRASTRUCTURE.

UM, AND WE ADDRESS ANY GRAFFITI, MISSING CAPS, CHIPPING PAINT, ANYTHING THAT MIGHT, UM, IMPACT THE INTEGRITY OF THAT FIRE HYDRANT AND ITS ABILITY TO, UM, MAINTAIN READINESS AS, UM, COMMISSIONER SCOTT STATED FOR, UM, WHEN IT IS CALLED INTO SERVICE FOR, FOR FIREFIGHTING.

UH, AND, AND I'LL JUST MENTION THAT WHEN WE DOCUMENT THAT WE DO DOCUMENT THE DATE INSPECTED, WE DOCUMENT THE STATIC PRESSURE, AND THEN, UM, AS WITH ALL OF OUR INSPECTIONS, THE EMPLOYEE WHO COMPLETED THE INSPECTION IS ALSO NOTED IN CASE WE HAVE ANY QUESTIONS, UM, GOING BACKWARDS.

AND SO WHAT DO WE LOOK FOR? AGAIN, THE, THE FIRE HYDRANT IS THE MOST, UM,

[00:10:01]

VISUALLY APPARENT PART OF THE SYSTEM, BUT IT IS CONNECTED TO, UH, THE, THE CITY'S WATER DISTRIBUTION SYSTEM, WHICH IS ALSO OUR DRINKING WATER DISTRIBUTION.

SO THIS IS THE HYDRANT, WE CALL IT THIS, THE HYDRANT BODY.

UH, THIS, THIS VERTICAL STEM HERE IS CALLED THE BURIAL BECAUSE IT IS BURIED UNDERGROUND AND MOST PEOPLE DO NOT SEE THAT.

BUT WE DO INSPECT THE BURIAL AS WELL BECAUSE FIRE HYDRANTS ARE DESIGNED TO WHAT WE CALL SHEAR.

UM, SOMETIMES, UH, VEHICLES MAY CRASH INTO A FIRE HYDRANT, AND THAT FIRE HYDRANT IS LOADED WITH WATER PRESSURE.

AND SO WE WANT THAT TO SHEAR IN A WAY THAT IS GOING TO BE SAFEST GIVEN THE, THE ACCIDENT THAT IS OCCURRING.

AND IF THAT WERE TO HAPPEN, WE NEED TO MAKE SURE THAT THE BURIAL PART AND THE FIRE HYDRANT BODY PART OF THIS ENTIRE SYSTEM, UM, HAS, UM, GOOD INTEGRITY AND THAT WE BELIEVE THAT IT WILL FUNCTION AS, AS DESIGNED.

SO THAT, UM, IS PART OF OUR INSPECTION AS WELL, IN ADDITION TO, UM, CHECKING THE VALVES FOR WATER PRESSURE.

AND THEN WE ALSO INSPECT, UM, THE, THIS FOOT VALVE IN THIS PICTURE, IT IS FURTHER OUT IN THE STREET, WHICH IS WHAT, UM, IS STANDARD FOR NOW.

UM, AND, AND THIS FOOT VALVE CONTROLS THE WATER ACTUALLY TO THE FIRE HYDRANT.

SO IF A FIRE HYDRANT WERE TO SHEAR AND WE WERE NOT ABLE TO TURN THE VALVES OFF AS YOU WOULD NORMALLY EXPECT, UM, AT THE HYDRANT, THE NEXT PLACE WE GO TO IS THIS FOOT VALVE, AND IT IS CONNECTED TO, UM, THE, THE BRANCH THAT CONNECTS MAIN WATER DISTRIBUTION SYSTEM TO THE FIRE HYDRANT ITSELF.

SO WHEN WE DO FIRE HYDRANT, UM, INSPECTIONS, THE VISUAL AND OPERATIONAL INSPECTIONS, WE, AND IF WE FIND ANYTHING THAT NEEDS TO BE ADDRESSED, UM, WE CAN DO THOSE QUICK REPAIRS LIKE REPLACEMENT CAPS, DAMAGE NUTS OR BOLTS, MINOR LEAKS.

ALL OF THOSE ELEMENTS OF THE INSPECTION PROGRAM CAN BE DONE ONSITE AT THE TIME OF INSPECTION.

NOW, IF THERE IS, UH, MORE DAMAGE THAN THAT AND WE NEED ADDITIONAL EQUIPMENT, UM, OR ADDITIONAL TESTS, THEN WE CAN, UM, SCHEDULE THOSE REPAIRS.

SOMETIMES IT'S SCHEDULED AND THE FIRE HYDRANT REMAINS IN PLACE BECAUSE IT IS STILL OPERATIONAL AND THE WATER PRESSURE IS STILL GOOD.

UM, BUT IF WE DO HAVE TO TAKE A FIRE HYDRANT OUT OF SERVICE, UM, FOR REASONS LIKE A BENT STEM OR WE FIND IT TO BE NON-OPERATIONAL, UM, IN ANY FASHION, THEN WE DO NOTIFY THE FIRE DEPARTMENT NON-EMERGENCY LINE.

AND THAT IS 5 6 2 5 7 0 9 4 0 0.

WE SHARE THE LOCATION OF THE HYDRANT THAT IS OUT OF SERVICE, AND THEN WE PROVIDE, UM, THE FIRE DISPATCH LINE WITH A REPAIR NUMBER.

ONCE THE REPAIR TO THAT HYDRANT HAS BEEN COMPLETE AND THE, AND THE HYDRANT HAS BEEN REPLACED AND RETURNED TO SERVICE, WE CALL THE, THE FIRE DEPARTMENT AGAIN, AND WE SHARE THE REPAIR NUMBER AND WE SAY, THIS HYDRANT IS BACK IN SERVICE.

AND, AND, AND OFF WE GO.

SO THAT IS THE, UM, FIVE-YEAR INSPECTION CYCLE THAT WE DO.

AGAIN, IT'S THE VISUAL AND OPERATIONAL INSPECTION.

WE ALSO DO FIRE FLOW TESTS ON OUR HYDRANTS.

AND THESE FIRE FLOW TESTS ARE CONDUCTED IN COORDINATION WITH, UM, CITY, WITH, UM, DEVELOPMENT PLANNING AND THE PERMITTING PROCESS.

IF THERE IS A NEW DEVELOPMENT OR A NEW FIRE SPRINKLER SYSTEM THAT IS INSTALLED THAT COULD IMPACT THE, UM, THE WATER PRESSURE IN THE SYSTEM.

SO FOR EXAMPLE, A NEW MULTIFAMILY HOUSING UNIT IS BEING BUILT DOWNTOWN, WE WILL DO FIRE FLOW INSPECTION ON THAT BUILDING AS A PART OF PERMITTING THE STRUCTURE ITSELF.

SO ANYTIME NEW HOUSING IS BUILT IN THE NEW IN THE CITY, ANYTIME NEW COMMERCIAL DEVELOPMENT IS BUILT, UM, AND EVEN THE INSTALLATION OF NEW FIRE SPRINKLER SYSTEMS AT, AT SCHOOLS OR, OR BUILDINGS THAT PREVIOUSLY DID NOT HAVE A FIRE SPRINKLER SYSTEM, WE WILL DO A FIRE FLOW TEST TO CONFIRM THAT AT MINIMUM, UM, THERE IS THAT 20, UM, PSI RESIDUAL PRESSURE FLOW RATE, UM, IN THE SYSTEM WHEN THE, UM, WHEN, WHEN THE HYDRANT IS FLUSHING.

SO, UH, I, I HOPE I'VE CONVEYED THAT OUR FIRE HYDRANTS ARE ABSOLUTELY AN IMPORTANT PART OF OUR, UH, FIREFIGHTING SYSTEM AS, UH, ARE THEY IMPORTANT TO OUR DRINKING WATER DISTRIBUTION.

AND IN ADDITION TO WORKING WITH THE FIRE DEPARTMENT, WE ARE REGULATED BY THE STATE WATER RESOURCES CONTROL BOARD.

UM, AND, UH, WE WORK CLOSELY WITH COMMUNITY DEVELOPMENT ON, ON THE ADDITION OF NEW STRUCTURES, UM, AND TO MEET NEW STATE REGULATIONS AS THEY MAY IMPACT OUR WATER PRESSURE IN THE WATER DISTRIBUTION SYSTEM WITHIN OUR CITY.

UM, AS MENTIONED EARLIER, UH, WE ARE VERY AWARE AND FOLLOWING THE CONVERSATIONS ABOUT FIRE HYDRANTS IN THE REGION BECAUSE WHAT WE WANT TO ENSURE IS THAT THE COMMUNITY HAS A LEVEL OF CONFIDENCE THAT OUR FIRE HYDRANTS HERE IN LONG BEACH ARE GOING TO WORK.

AND VERY EARLY ON, UM, WHEN THE FIRES WERE UNFORTUNATELY STILL GOING, UM, A**L DID HAVE A CONVERSATION WITH, UH, FIRE CHIEF BUCHANAN, AND

[00:15:01]

WE TALKED ABOUT OUR FIRE HYDRANTS, WE TALKED ABOUT THE FIRE HYDRANT INTEGRITY, WE TALKED ABOUT THE INSPECTIONS, WE TALKED ABOUT THE LOCATIONS AND WHETHER OR NOT WE HAD ENOUGH HYDRANTS.

AND, UM, WE WERE ABLE TO CONFIRM THAT WE DO ON THE WATER SIDE.

AND THE, THE LONG BEACH FIRE DEPARTMENT SIDE FEEL VERY CONFIDENT ABOUT OUR WATER DISTRIBUTION AND OUR WATER HYDRANT SYSTEM AND HOW THOSE TWO INTERACT, UM, IN, IN OUR CITY.

UM, BUT WITH THAT, THERE'S ALWAYS LESSONS TO BE LEARNED AND THINGS THAT WE COULD IMPROVE ON.

AND SO, UM, WITH THAT IN MIND, WE ARE FOLLOWING THE CONVERSATION VERY CLOSELY, UM, AS WELL AS STATE LEGISLATION THAT IS, UM, IN SACRAMENTO PENDING SB 3 94.

ALAN IS THE, PROBABLY THE BIGGER OF THE TWO, UM, PIECES OF STATE LEGISLATION THAT ARE, UM, THAT THAT IS GOING THROUGH AND BEING ASSESSED AT THE MOMENT.

UM, THIS ONE IN PARTICULAR ARISES FROM, UH, PRIVATE FIREFIGHTING COMPANIES THAT HAVE RECENTLY BEGUN TO OPERATE AND, AND USE OUR SYSTEM IN WAYS THAT WE AS THE, UH, AS THE WATER PROVIDER AND THE LOCAL FIRE DEPARTMENT HAD NOT IN INTENDED.

SO WE ARE VERY CONSCIOUS ABOUT WHO IS TOUCHING OUR SYSTEM, HOW MUCH DEMAND IS BEING PLACED ON OUR SYSTEM, AND WE DESIGN IT AS SUCH, UM, WITH CAPACITY AND WATER QUALITY IN MIND.

WITH THAT, WE ARE AVAILABLE TO ANSWER QUESTIONS.

ALL RIGHT.

THANK YOU.

UM, ANY QUESTIONS? UH, SO YEAH, I, I'VE GOT A FEW THINGS HERE.

UM, SO YOU WERE ASKING ABOUT THE ONE YEAR ANNUAL INSPECTION CYCLE.

SO NFPA, UH, IS A, UH, A MASSIVE INTERNATIONAL ORGANIZATION.

UH, THEY HAVE 50,000 MEMBERS, 9,000 VOLUNTEERS THAT WORK ON 250 TECHNICAL COMMITTEES.

SO THE PROMULGATION FROM NFPA ARE, UH, ARE SENT OUT BY NUMBERS.

SO, UH, THE FLOW TEST, UH, THAT YOU'RE TALKING ABOUT, UM, IS, IS ACCURATE.

SO THE TITLE OF NFPA 2 91 RECOMMENDED PRACTICE FOR FIRE FLOW TESTING AND MARKING OF HYDRANT.

UM, THE FIRE FLOW TESTING IS A REQUIREMENT THAT'S, UH, FROM N-N-F-P-A, THAT IS TO BE DONE EVERY FIVE YEARS.

IT'S TO TEST TO MAKE SURE THAT THE FIRE FLOW IS SUFFICIENT, WHICH IS 20 PSI.

UM, UH, IT DOES NOT HAVE TO BE DONE ON EVERY SINGLE HYDRANT.

IT CAN BE DONE ON A HYDRANT SET ARE GROUPED TOGETHER JUST TO GET A, A, UH, UH, A SENSE, UH, OR A CENSUS OF, UH, THE GENERAL FIRE FLOW IN THE AREA.

UH, IT'S DOES NOT REQUIRE ACTUAL HANDS-ON INSPECTION OF, OF EVERY SINGLE HYDRANT.

NFPA 25 INSPECTION TESTING, MAINTENANCE OF WATER-BASED FIRE PREVENTION SYSTEMS TALKS ABOUT THE, UH, ANNUAL INSPECTION REQUIREMENT.

UH, AND ANNUAL INSPECTION, LIKE YOU SAID, UH, INCLUDES A VISUAL INSPECTION, UH, OPERATIONAL CHECK VERIFY.

THE HYDRANT CAN BE OPEN AND CLOSED SAFELY, UH, UH, AND, AND THAT IT FUNCTIONS FULLY, THAT THE FIRE FLOW IS ADEQUATE.

UM, IT CAN INVOLVE TESTING WITH AEDO GAUGE OR, OR OTHER THINGS, BUT IT'S, IT'S MOSTLY JUST TO MAKE SURE THAT WATER IS FLOWING OUT OF THERE AT WHAT SEEMS TO BE A SUFFICIENT FLOW.

UM, UH, THERE'S, AS YOU SAID, OTHER THINGS THAT CAN BE DONE AT THE SAME TIME WITH THAT, UH, UH, CHECKING THE CAPS, MAKE SURE THE STEMS, UH, SPIN FREELY THE THREADS, UH, ON THE CAPS, MAKE SURE THAT, UH, THAT THOSE ARE, IF THE CAPS ARE MISSING, THE THREADS COULD BE DAMAGED, UH, BECAUSE OF THAT, UM, UH, FLUSHING OF THE HYDRANT, AS YOU MENTIONED, THAT'S IMPORTANT AS WELL.

UH, SO IT'S, IT'S A, IT'S A NUMBER OF THINGS.

THE TESTING, UM, MAKING SURE THAT A HYDRANT HAS NOT BECOME, UH, OBSCURED BY PLANT GROWTH OR SOMEBODY BUILDING A FENCE OR WHATNOT, UH, ENSURE THAT THE BARREL IS IN IN GOOD CONDITION.

OBVIOUSLY, UH, THE INCIDENT THAT HAPPENED IN ROSSMORE, THAT WAS ORANGE COUNTY, SO IT'S NOT US, THANK GOODNESS.

AND I UNDERSTAND IT'S AN UNINCORPORATED AREA OF ORANGE COUNTY, BUT, UM, IT TURNED OUT THAT THAT BARREL WAS CRACKED AND, UH, IT WAS A, UH, DRY BARREL.

THERE WAS NO WATER IN THE, IN THE HYDRANT AT THE TIME, SO THAT'S WHY IT DIDN'T INDICATE ITSELF AS, AS BEING CRACKED.

UH, WE DON'T TYPICALLY HAVE DRY BARRELS IN, IN , BUT THAT'S NOT TO SAY THAT, UH, OTHER ISSUES, UM, CANNOT IMPACT THAT FIRE HYDRANTS THAT, THAT, THAT FIRE HYDRANT THAT'S STANDING SENT ALL BY ITSELF 24 HOURS A DAY, SEVEN DAYS A WEEK, WHO KNOWS WHAT HAPPENS TO THESE, TO THESE FIRE HYDRANTS.

SO, UM, UH, I BELIEVE AN ANNUAL INSPECTION IS, IS ABSOLUTELY CRITICAL.

THE CITY OF LONG BEACH, UM, CITY OF LOS ANGELES FIRE DEPARTMENT HAS ANNUAL INSPECTIONS.

THEIR FIRE CREWS INSPECT AND TOUCH EVERY SINGLE HYDRANT IN THE CITY OF LOS ANGELES EVERY SINGLE YEAR.

WITH THAT, THERE'S STILL A NUMBER OF FIRE HYDRANTS THAT, UH, 1,350 BY ACAL, UH, ACCOUNTING THAT ARE EITHER OUT OF SERVICE OR REQUIRE MAINTENANCE.

THERE SOUNDS

[00:20:01]

LIKE SOME ISSUES BETWEEN, UH, DWP AND LA CITY FIRE WITH REGARDS TO CONVEYING THE, THE NECESSITY FOR REPAIRS ON THOSE.

UH, THAT IS NOT, UH, REALLY AN ISSUE OF THE ANNUAL INSPECTION.

THAT'S JUST AN, AN, UH, AN ISSUE OF COMMUNICATION.

UM, THE CITY HAS HAD SEVERAL, UM, STUDIES DONE ON THE FIRE DEPARTMENT IN THE LAST, WELL, LET'S SAY 20 YEARS.

UH, THE TRITA STUDY IN 2005, UH, JUNE, 2022, THE AP TRITON STUDY, UM, UH, BOTH OF THOSE STUDIES INDICATED THE IMPORTANCE OF, UH, AN INSPECTION PROGRAM ON HYDRANTS.

UM, THE 2022 AP TRITON ACTUALLY INDICATES THAT, UH, OUR TESTING REGIMEN IS ON A THREE YEAR CYCLE.

UH, PAGE 3 25 OF THE DRAFT REPORT, UH, STATES THAT, UH, AT THE TIME LONG BEACH WATER DEPARTMENT PROVIDES ALL FIRE HYDRANT INSPECTIONS AND MAINTENANCE.

THE HYDRANT GROUP WITHIN LBWD IN INSPECTS THE HYDRANTS ON A THREE YEAR ROTATING BASIS, UH, AND CONDUCTS HYDRANT FLOW TESTING AS NEEDED.

UM, DURING THE MOST RECENT ISO INSPECTION, LBFD RECEIVED 5.6 CREDITS OUT OF 7.0 AVAILABLE.

UM, THAT INTRODUCES THE IMPORTANCE OF, UH, ISO AND FLOW TESTING, WHICH WE DON'T HAVE TIME TO GET INTO THAT RIGHT NOW.

UM, BACK IN, IN 2005 WHEN THE TRI DATA STUDY WAS DONE, UH, LONG BEACH FIRE WAS ACTIVELY, UH, TESTING, UH, NOT TESTING, INSPECTING, UH, EVERY SINGLE HYDRANT IN THE CITY.

UM, 7,195 HYDRANTS, UM, IN JUNE OF 22.

AP TRIDENT SAYS WE WERE LONG BEACH WATER WAS ON A THREE YEAR CYCLE.

UH, IF THAT'S THE CASE, THAT WAS, THAT WOULD BE A, UH, PUTTING HANDS ON HYDRANTS, UH, 2,400 HYDRANTS PER YEAR.

UH, IF YOU TAKE 71 95 DIVIDED BY THREE.

UH, AND THEN CURRENTLY AS YOU STATE, WE'RE ON A, ON A FIVE YEAR CYCLE, THAT'S OVER 1400, UH, HYDRANTS, UH, BEING INSPECTED EVERY SINGLE YEAR.

MY QUESTION IS, UH, HOW MANY FOLKS DO WE HAVE THAT ARE PERMANENTLY ASSIGNED TO THE HYDRANT INSPECTION PROGRAM? UH, WHAT SORT OF RECORDS ARE THEY MAINTAINING? UM, WHAT, WHAT IS THEIR REGIMEN OR INSPECTION? CAN YOU ENLIGHTEN ME ON THAT? SURE.

OUR HI FOR HYDRANT INSPECTION PROGRAM IS, IS DONE, UM, PRIMARILY THROUGH THE WATER SERVICES GROUP.

THEY DO THE INSPECTIONS, OUR WATER CONSTRUCTION CREWS, UM, SUPPORT WITH, UM, SCHEDULED MAINTENANCE OR SCHEDULED REPAIRS THAT WE AREN'T ABLE TO DO ON SITE WHEN WE DO THE INSPECTIONS ITSELF.

UM, BETWEEN THOSE TWO GROUPS, WE HAVE, I WOULD SAY PROBABLY 80, 80 EMPLOYEES WHO ARE ASSIGNED TO A NUMBER OF JOB FUNCTIONS.

UM, BUT TO MAKE THAT FIVE YEAR CYCLE, WE DO DIVVY UP THE WORK SO THAT, UM, THERE IS AN APPROPRIATE NUMBER OF INSPECTIONS DONE PER YEAR, SIMILAR TO HOW WE DO OUR, UM, OUR WATER METER REPLACEMENT PROGRAM.

UM, WE DO IT BY QUADRANT.

UM, IT IS MORE EFFICIENT AND, AND THAT'S A NEW EFFICIENCY THAT WE HAVE IMPLEMENTED USING OUR GIS SYSTEM SO THAT WE ARE MORE SYSTEMICALLY MAPPING, UM, AND USING OUR TIME TO ENSURE THAT WE TOUCH EVERY FIRE HYDRANT IN FIVE YEARS.

SO WITH 80 FOLKS IN THE WATER SERVICES GROUP, ASSUMING EACH ONE OF THEM, UH, RECEIVES AN EQUAL NUMBER OF ASSIGNMENTS TO FIRE HYDRANTS, THAT'S 18 FIRE HYDRANTS PER, UH, PER INDIVIDUAL, UH, WHICH IS ONE AND A HALF FIRE HYDRANTS PER MONTH.

IS THAT SOMETHING THAT, THAT WE'RE ACHIEVING? UH, I, I CAN SHARE THAT WE DEFINITELY ARE ON SCHEDULE.

UM, AND NOT EVERY EMPLOYEE IN THAT WORK GROUP IS, IS INSPECTING FIRE HYDRANTS EVERY DAY.

THEY DO HAVE A, A NUMBER OF RESPONSIBILITIES THAT THEY DO, UM, BUT ON, ON A WHOLE, WE, WE TRACK BY MONTH TO MAKE SURE THAT WE ARE MEETING OUR STANDARDS AND ON PACE TO, UM, BE COMPLIANT IN THAT FIVE YEAR CYCLE.

AND, AND THAT IS TYPICALLY HOW WE MANAGE THE INSPECTION PROGRAM.

AND WHAT ARE THE RECORDS THAT WE MAINTAIN FOR THAT, UH, ON IN A DATABASE THAT, UM, THE ENTIRE WORK GROUP CAN SEE IT AS A SHARED DATABASE.

UM, WE DO MAINTAIN A RECORD OF THE INSPECTION DATE, THE HYDRANT LOCATION, AND THAT'S WHY WE USE THE GIS SYSTEM BECAUSE IT IS THE MOST ACCURATE WAY TO ENSURE THAT WE'RE TOUCHING, UH, THAT THE DATA MATCHES THE HYDRANT THAT WE'VE ACTUALLY INSPECTED.

UM, AND IN THAT WAY WE ARE, UM, WE WE'RE, WE'RE KEEPING RECORDS.

UM, I'LL, I'LL SHARE FIRE.

THESE FIRE HYDRANTS HAVE BEEN AROUND FOR A LONG TIME.

LONG BEACH IS AN OLD CITY.

UM, WE HAD STARTED, UM, LIKE WITH MUCH OF OUR DATA WITH PEN AND PAPER, AND SO OVER TIME WE HAVE HAD TO TRANSITION PEN AND PAPER INTO A MORE ELECTRONIC FORMAT.

AND AS TECHNOLOGY EVOLVES AND WE'RE BETTER ABLE TO SHARE DATA EVEN AMONGST OURSELVES, OUR DATA, UH, I'M SORRY, OUR, OUR SYSTEMS FOR TRACKING THE DATA HAVE,

[00:25:01]

HAVE CHANGED.

UM, I AM PROUD TO SAY THAT IT IS SOMETHING THAT WE'RE CONTINUOUSLY WORKING ON.

UM, I, I WOULDN'T SAY IT'S PERFECT, BUT I DO THINK THAT WITH THE NEW GIS SYSTEM THAT JARED AND WATER SERVICES, OUR MANAGER OF WATER SERVICES HAS IMPLEMENTED, I GIVE HIM HUGE KUDOS FOR THAT.

UM, WE ARE, UH, DOING THIS WORK IN A MUCH MORE SYSTEMIC, UM, AND TRANSPARENTLY DOCUMENTED PROCESS THAT WAS THAN, THAN PREVIOUSLY COMPARED TO WHEN WE WERE, UH, STILL ON PEN AND PAPER.

UH, WHEN DID THAT TRANSITION FROM PEN AND PAPER TO ELECTRONIC? I THINK IT'S BEEN A GRADUAL PROCESS, , AND SO OVER TIME, UM, IT'S, IT'S GOTTEN A LITTLE BIT BETTER.

UM, I THINK WE'RE, WE'RE FULLY ELECTRONIC NOW, UM, AND WE'LL BE IN THAT FASHION GOING FORWARD.

UM, EVEN AMONGST OURSELVES, WE'RE WORKING ON, UM, BEING ABLE TO SHARE THE INFORMATION MORE FREELY BETWEEN WATER SERVICES AND WATER CONSTRUCTION.

UM, AND IT'S, IT'S DATA THAT WE WOULD BE WILLING TO SHARE WITH THE FIRE DEPARTMENT IF THEY WERE INTERESTED AS WELL.

UH, I'D BE MOSTLY INTERESTED IN SHARING WITH THE INFRASTRUCTURE COMMITTEE, UH, WOULD DEFINITELY BE ONE OF MY ASKS.

I BELIEVE IT WAS ONE OF MY ASKS, UM, WHATEVER INFORMATION YOU COULD PROVIDE ON THAT I'D BE INTERESTED IN SEEING.

THE REASON I ASK IS BECAUSE WHEN THE FIRE DEPARTMENT, UH, WAS DOING INSPECTIONS, UH, TOUCHING EVERY HYDRANT EVERY YEAR, IT WAS AN ENGINE COMPANY THAT WAS GOING, UH, TO EACH HYDRANT.

SO AN ENGINE COMPANY IS COMPRISED OF FIRE CAPTAIN, A FIRE ENGINEER, AND TWO FIREFIGHTERS.

UM, THAT'S FOUR INDIVIDUALS.

UM, THE ESTIMATED TIME ON THE TRI DATA REPORT FOR, FOR EACH HYDRANT WAS ABOUT 20 MINUTES, INCLUDING DRIVE TIME.

UH, BUT YOU KNOW, OBVIOUSLY THE WAY THAT THE ENGINE COMPANIES WOULD HANDLE IT EFFICIENTLY IS PICK A NEIGHBORHOOD AND JUST DRIVE FROM HYDRANT TO HYDRANT TO HYDRANT TO HYDRANT.

UM, BUT LET, LET'S SAY IT'S A, A ROUGHLY 20 MINUTES, UH, OPERATION.

UH, IT, IT TOOK THE ENTIRE 400 AND SOME MEMBER FIRE DEPARTMENT, UH, UH, THE BETTER PART OF A YEAR TO, TO TOUCH EVERY HYDRANT IN THE CITY.

AND NOT ONLY TOUCH THEM, BUT FLOW THEM AND, AND, AND DO ALL THE THINGS THAT I, I TALKED ABOUT PREVIOUSLY.

SO I, I FIND IT DIFFICULT TO BELIEVE THAT, UH, AN 80 PERSON GROUP, UH, IS ABLE TO DO THE SAME AMOUNT OF, OF WORK IN AS GOOD OF A FASHION.

UH, AND I, I HAVE CONCERNS ABOUT OUR, OUR INTEGRITY ON OUR, ON OUR FIRE HYDRANTS 'CAUSE OF THE MAINTENANCE OR THE LACK OF, UH, FIRE DEPARTMENT NOT TOUCHING THOSE THINGS EVERY YEAR.

COMMISSIONER SCOTT, YOU WERE SAYING THAT WITH THE ENGINE COMPANY IN 20 MINUTES, YOU'RE SAYING THEY WERE ABLE TO DO HOW MANY FIRE HYDRANTS FOR THE WE DO ONE HYDRANT PER 20 MINUTES.

YES.

AND THEIR ONE, THEIR ANNUAL ACCOMPLISHMENT WAS THE ENTIRE 7,195 HYDRANT YEAR.

WE WERE TALKING ABOUT 80, WE WERE TALKING ABOUT THE FIVE YEAR CYCLE.

AND SO IN TERMS OF RESPONSIBILITIES, VALVE OPERATIONS, 'CAUSE IN THE INSPECTION PART OF IT IS THE INTEGRITY OF THE WATER SYSTEM ITSELF.

SO WE HAVE THE VALVE OPERATION ITSELF, WHICH IS DIFFERENT AND TAKES A LITTLE LONGER THAN THE ACTUAL PHYSICAL INSPECTION OF THE FIRE HYDRANT ITSELF.

SO WE HAVE THOSE ELEMENTS AS WELL THAT TAKE A LITTLE BIT LONGER.

SO I DON'T THINK WE WERE OFFERING THAT THE 80 PERSONNEL WERE DOING ALL OF THE FIRE HYDRANTS.

THEY WERE DOING A PORTION OF THEM EVERY FIVE YEARS.

SO I WAS TRYING TO UNDERSTAND MATHEMATICALLY THE COMPARISON YOU WERE TRYING TO MAKE.

SO THE, UH, YOU ADDED A, A, A TWIST IN THERE THAT, THAT I AGREED IT DOES NEED TO BE, UH, INTEGRATED IN WHAT PREVIOUSLY WAS NOT BEING DONE.

UM, PREVIOUSLY THE INSPECTION WAS LIMITED TO THE HYDRANT ITSELF AND THE LOCATION OF THE FOOT VALVE.

THE FOOT VALVE WAS NEVER OPERATED.

UM, I THINK THAT IS SOMETHING THAT DOES NEED TO BE, UH, ADDRESSED.

I THINK THEY GO HAND IN GLOVE.

IF YOU'RE INSPECTING A HYDRANT, YOU SHOULD INSPECT THE FOOT VALVE AND OFF ALSO EXERCISING THE FOOT VALVE.

SO, UH, I I WOULD, I WOULD PUT FORTH THAT, UH, FIRE DEPARTMENT INSPECTION OF FIRE HYDRANTS SHOULD ALSO INCLUDE LOCATION AND OPERATION OF THE .

WELL, WE, WE CAN DISCUSS THAT FURTHER.

WE COULD BRING THE INFORMATION FOR YOU.

UM, IT'S IMPORTANT TO NOTE THAT OPERATIONS OF THE VALVES IS A WATER QUALITY REPORT.

IT REQUIRES ITS OWN SPECIALIZED TRAINING CERTIFICATION AND EQUIPMENT.

SO CONSEQUENTLY, THAT MAY OR MAY NOT ALIGN OKAY.

WITH THE WORKFORCE CAPABILITIES OF THE FIRE DEPARTMENT.

I DO KNOW THE, UH, ENGINE COMPANIES DO CARRY, UH, STREET KEYS IN THE EVENT THERE'S A, A SHEAR HYDRANT IN ORDER TO SECURE THE FLOW FROM THAT.

[00:30:02]

I, I THINK IT'S, IT'S MORE THAN THAT AND EXERCISING THE VALVE.

'CAUSE IN TERMS OF EXERCISING THE VALVE, THERE'S CERTAIN REQUIREMENTS FOR IF NOT DONE PROPERLY, THEN THE VALVE CANNOT BE CONSIDERED TO HAVE BEEN EXERCISED.

AND IN FACT, IF YOU EXERCISE IT IMPROPERLY, SO THAT THAT IS IN ADDITION, IT'S A COMPLEX SYSTEM.

ONE OF THE THINGS THAT THE MAP HIGHLIGHTED WAS ALL THE WORKING COMPONENTS ITSELF.

UM, I, I THINK THAT YOUR COMMENTS ARE, ARE TAKEN INTO CONSIDERATION HERE.

YOU WANT MORE INFORMATION AND I CAN TRY TO WORK WITH YOU IN TERMS OF THE REQUEST THAT YOU HAVE FOR MORE INFORMATION, WE AND BRING IT FORWARD IN THAT REQUEST TO DISCUSS.

IS THAT FINE? UH, NO.

AND I DIDN'T MEAN TO CUT YOU OFF IN TERMS OF QUESTIONS.

IF YOU HAVE MORE QUESTIONS AND COMMENTS, JUST THAT INTERJECTION I WANTED TO MAKE.

YEP, THAT'S FINE.

YEAH.

OKAY.

SO I'VE TAKEN SOME NOTES AND WE'VE HEARD YOUR COMMENTS HERE, SO I'LL TRY TO PLAY THIS BACK TO YOU AS A WAY OF DISCUSSION FOR THE NEXT COMMITTEE MEETING AND MORE INFORMATION AND CONTINUE THE DIALOGUE.

OKAY.

THAT FAIR? OKAY.

THANK YOU.

THANK YOU, DIANA.

UH, SO NEXT UP WE'RE GOING TO RECEIVE AN

[2. 25-54651 Recommendation to receive an update regarding Utilities Campus Improvements.       Suggested Action: Receive report. ]

UPDATE REGARDING UTILITIES CAMPUS IMPROVEMENTS.

KEVIN MORNING.

MORNING.

SO, UM, THIS IS, UH, WE GOT AN HOUR AND A HALF LEFT IN HERE, SO I DON'T HAVE THAT MUCH TO TALK ABOUT.

SO PLEASE, AS I'M GOING THROUGH THIS, IF YOU HAVE ANY QUESTIONS, INTERRUPT ME.

I'D LIKE THIS TO BE MORE DIALOGUE, JUST ME SPEAKING AT, WE DON'T HAVE TO TAKE AN HOUR AND A HALF.

YEAH, NO, I HAVE ABOUT AN HOUR AND 45, SO, OKAY.

I'LL TRY AND RUSH THROUGH IT.

SO, UH, THE OVERVIEW OF THE PRESENTATION, UH, WE'RE GONNA REVIEW, I'VE BEEN HERE A COUPLE TIMES, SOME OF THE CONCEPTS THAT WE HAVE PRESENTED, ONE CAMPUS MODEL, TWO CAMPUS MODEL, AND THEN I THINK THE LAST TIME I WAS HERE, YOU ASKED US TO LOOK AT A KIND OF A, A THREE CAMPUS MODEL THAT MAY BE A LITTLE, IT'S BEEN A LITTLE SPEND, A LESS CAP, A LITTLE LESS CAPITAL.

UH, SO WE'LL HAVE THAT TO SHOW TO YOU THEN AN UPDATE ON THE ELM OFFICE SPACE AND THEN GOING OVER SOME OF THE MAJOR COMPONENTS ASSOCIATED WITH THE DESIGN.

I THINK ONE OF THEM THAT I'LL, I'LL PRESENT A LITTLE BIT LATER IS THE VALUE OF THIS PROPERTY AND ALSO THE GAS CAMPUS THAT SPRING.

WE GOT, UH, EVALUATIONS ON THE MARKET VALUE SHARE WITH YOU LATER.

AND THEN KIND OF THE, THE NEXT STEPS AS, UH, AS WE SEE IT.

SO, UH, BEFORE I GET INTO THE CONCEPTUAL DESIGNS, I THOUGHT IT WOULD BE MAYBE BENEFICIAL TO SHARE A LITTLE BIT OF THE HISTORY OF WHAT HAD BEEN DONE PRIOR TO THE MERGERS OF GAS AND WATER.

SO ON THE, WHEN WE WERE ENERGY RESOURCES, THERE WAS A PLAN TO DO A CAMPUS REBUILD AT THE, THE SPRING FACILITY.

THAT PROCESS HAD STARTED, IT HAD BUDGETS PUT TOGETHER IN OUR COST ASSESSMENTS IN 2019.

THAT INVOLVED, UH, REPLACING OUR WAREHOUSE, REPLACING AUDITORIUM THAT WE HAVE, AND ALL THE OFFICE SPACE IN THAT LOCATION.

IT WAS REBUILD AND ALL OF THE ENERGY RESOURCES STAFF WITHIN RESIDE AT THAT LOCATION.

AND THEN IN, UH, 2021, WE PURCHASED THE ELM AVENUE PROPERTY.

SO WE GAINED THE FOURTH FLOOR THERE.

SO WE, WE SHRUNK THE DESIGN FOR, UH, SPRING CAMPUS.

SO THEN WE WERE ONLY GOING TO REPLACE THE AUDITORIUM AND THEN A NEW WAREHOUSE FACILITY, AND WE WOULD REPURPOSE FIVE 70, UH, GAS SERVICES, GAS CONSTRUCTION FOLKS AND GAS ENGINEERING WOULD BE AT THAT LOCATION.

BUT THEN THE, THE, THE OTHER PORTION OF OUR GROUP, OUR HR FINANCE TEAM, LITTLE OPERATIONS AND OUR, UH, DIRECTOR, UH, WOULD ALL RESIDE AT ELM AVENUE AND OBVIOUSLY, AND WE MERGED.

SO THEN, AND THAT ALL CHANGED AGAIN, BUT I JUST THOUGHT I'D, UH, PROVIDE A LITTLE BIT OF THE HISTORY THERE.

UH, AND THAT FINAL CONCEPT AT SPRING, AND THIS IS, MIND YOU, IN 2021, IT WAS ESTIMATED THAT WE WERE GONNA SPEND ABOUT A MILLION DOLLARS TO DO WHAT I MENTIONED THAT DOESN'T INCLUDE WHAT WE WERE GONNA HAVE TO DO AT ELK.

THAT WAS JUST THAT SPRING.

AND THEN HERE AT THIS CAMPUS, UH, NOTHING HAD BEEN PRESENTED TO THE BOARD,

[00:35:01]

BUT THERE WAS, UH, THERE WAS RECOGNITION THAT THERE WASN'T ENOUGH SPACE HERE.

SO THERE WAS CON UH, REDESIGNING OF THE OFFICE SPACE HERE THAT WAS, UH, BEING LOOKED AT.

AND THEN ALSO, UH, THERE WAS SOME WEATHERPROOFING AND IMPROVEMENTS THAT WERE NEEDED AT THIS BUILDING THAT HAD, WAS BEING WORKED ON PRIOR TO THE MERGER.

AND SAME AT TREATMENT PLANT.

THERE WAS SOME ROOFING ISSUES THERE AND OTHER MAINTENANCE NEEDS AND RECOGNITION THAT I THINK THEY NEEDED MORE OFFICE SPACE.

ALL THAT WAS IN THE WORKS PRIOR TO THE MERGER, BUT THOSE HAD NEVER BEEN PRESENTED TO THE BOARD.

JUST WANTED TO SET THE TABLE WHERE WE WERE BEFORE WE MERGED HERE AND THERE.

SO THE FIRST CONCEPT, OR THE FIRST THREE YOU'VE SEEN BEFORE, SO THE THEME ONE IS SCHEME TWO ARE ESSENTIALLY THE SAME.

IT'S A, IT'S TWO CAMPUS MODEL.

ONE IS AN, IT'S ALL OF ADMIN, ENGINEERING, FINANCE TOGETHER, AND THEN OPERATION.

SO GAS CONSTRUCTION, GAS SERVICES, WATER CONSTRUCTION, WATER SERVICES AND SEWER SERVICES ALL TOGETHER.

SO IN SCHEME ONE THAT, UH, WE HAVE OUR ADMINISTRATION AT THE TREATMENT PLANT AND THEN AT THE GAS CAMPUS OR THE SPRING CAMPUS, WE HAVE OUR OPERATIONS.

AND THEN FOR SCHEME TWO, IT'S JUST THE REVERSE.

WE HAVE OUR ADMIN AT THE GAS CAMPUS AND THEN AT THE TREATMENT PLANT WE BUILD OUR OPERATIONS.

AND THEN I'LL JUST NOTE IN SCHEME TWO, THE, THERE'S MORE SPACE NEEDED FOR A FOOTPRINT AT TREATMENT PLANT.

SO WE WOULD STILL NEED TO WORK WITH THE CITY TO ACQUIRE SOME ADDITIONAL LAND THAT THEY OWN NEAR RIGHT NEXT TO THE TREATMENT PLANT.

UM, AND THEN WE ALSO LOOKED AT THE CENTRALIZED CAMPUS, WHICH YOU'VE SEEN BEFORE AS WELL, WHERE WE'RE ALL LOCATED AT AT TREATMENT.

AND, AND THE COSTS HERE, UM, ARE SOMEWHAT IN THE BALLPARK, BUT ABOUT ROUGHLY $200 MILLION OF AN INVESTMENT.

SO IN SCHEME FOUR, UM, THIS IS WHERE WE WOULD DO SOME OF WHAT I MENTIONED AT SPRING.

SO NEW WAREHOUSE, SOME ADDITIONAL OFFICE SPACE REPLACING OF THE AUDITORIUM.

AND, AND, AND THE IDEA ALSO WOULD BE THAT WOULD, THAT WOULD BE WHERE WE WOULD HOLD FUTURE BOARD MEETINGS.

WE BUILD A MULTIPURPOSE ROOM WHERE WE WOULD HAVE, UH, DIVIDERS WHERE WE COULD SET IT UP FOR A BOARD MEETING.

AND THEN WE COULD ALSO OPEN IT UP IF OUR GM WANTS TO HAVE A, A LARGER MEETING WITH, UH, STAFF.

AND THE IDEA OF MOVING IT TO SPRING, JUST, IT WOULD BE NEWER HAVING THE BOARDROOM THERE.

I MEAN, IT WOULD BE NEWER FACILITY KIND MORE, NOT THAT THIS IS BAD, BUT JUST MORE STATE OF THE ART WAY OF PRESENTING FOR THE BOARD.

AND UH, IT'S JUST MORE ACCESSIBLE.

IT WOULD BE ON THE FIRST FLOOR ACCESS THERE.

PLENTY OF PUBLIC PARKING JUST SEEMED TO MAKE SENSE.

SO THAT WAS ABOUT 86 MILLION.

I SAID 50 BEFORE, UH, IT'S ABOUT 86 MILLION NOW.

UH, IN THE MOST RECENT COST ASSESSMENT PERFORMED BY, UH, OUR CONSULTANT GPA AND THEN HERE AT WARDLOW.

SO FOR EXAMPLE, WE WOULDN'T NEED THIS ANYMORE, SO WE COULD REPURPOSE THIS, THIS FACILITY OR THIS SPACE TO MORE, FOR MORE OFFICES.

AND WHILE WE WOULDN'T BE ABLE TO HAVE OUR OPERATIONS FIELD OPERATIONS TOGETHER UTILIZING THE SPACES AT SPRING AND AT THIS LOCATION, WE COULD CREATE ENOUGH OFFICE SPACE THAT WE COULD HAVE ALL OF ENGINEERING AT THE SAME LOCATION.

ALL OF HR, ALL OF FINANCES.

SO THERE ARE, UM, WAYS TO PROVE OUR COLLABORATION WITH, WITH EVEN THE THREE CAMPUS DESIGN, BUT OBVIOUSLY WE COULDN'T DO ALL OF OUR OPERATIONS TOGETHER.

THE, THE COST ESTIMATE SEEMS A LITTLE HIGH FOR WARDLOW.

UM, JACK, AS HE WAS DOING HIS ESTIMATE, SAID HE WAS, I GUESS WORST CASE SCENARIO, AS YOU DECIDE, AS YOU DO MORE DEVELOPMENT ON A BUILDING, IT MAY TRIGGER US TO HAVE TO DO OTHER THINGS TO GET THE BUILDING TO CURRENT CODES.

SO THAT'S WHY IT'S ESTIMATED 39, 30 9 MILLION FOR, UH, DOING THE, THE WORK HERE AT WARDLOW.

AND THEN AT, UH, TREATMENT PLANT, UH, THE ADDITIONAL OFFICE SPACE I MENTIONED BEFORE THAT WAS ESTIMATED 3.2, SO FOR TOTAL IS ABOUT 128 MILLION.

SO ROUGHLY 30 MILLION LESS THAN KIND OF THE COMBINED CAMPUS MODELS.

BUT YOU KNOW, OBVIOUSLY AT A, YOU'RE NOT GETTING AS MUCH AS A LITTLE BIT OF A SACRIFICE IN TERMS OF OUR COLLABORATION ABILITIES GOING WITH KIND OF EVERYONE STAYS IN PLACE.

AND THEN SCENE FIVE, I, I JUST KIND OF THREW IT OUT THERE.

WE HAVEN'T LOOKED INTO THIS.

IT'S SOMETHING THAT WE

[00:40:01]

COULD DO IF YOU GUYS WOULD LIKE US TO, BUT THIS IS KIND OF THE BARE MINIMUM.

WE JUST, WE REPLACE HVAC SYSTEMS THAT NEED TO BE DONE.

WE DO WHATEVER MAINTENANCE ROOF REPAIR.

UH, WE'VE KIND OF PROLONGED, WE HAVEN'T, WE'VE PUSHED OFF DOING SOME ROOF REPAIRS AT SPRING CAMPUS BECAUSE, YOU KNOW, WE WAS ANTICIPATING THAT WE WERE GOING TO MAKE A CAPITAL INVESTMENT THAT WE DIDN'T WANT TO SPEND A TON OF MONEY ON ROOF REPAIRS, BUT WE COULD LOOK AT THAT AS AN OPTION.

UM, BUT THEN YOU'RE, YOU'RE, YOU'RE NOT, YOU DON'T GET THE ADDITIONAL OFFICE SPACE.

UM, MAYBE WHEN ENERGY RESOURCES MOVE, MOVES OUT TO ELM, WE CAN PUT SOME GROUPS TOGETHER, BUT ESSENTIALLY, UH, YOU DON'T GET ANY POTENTIAL COLLABORATION BENEFITS BY GETTING US CLOSE TOGETHER.

BUT IT'S JUST SOMETHING THAT WE COULD DO IF IT'S DESIRED.

IS THERE A COST TESTIMATE SCHEME? FIVE? NO, I HAVEN'T, I HAVEN'T.

I'M JUST SAYING IF THAT'S SOMETHING YOU WANT US TO LOOK IN, WE CAN SPEND THE TIME TO TRY AND PUT SOME COST ESTIMATES THERE.

KEVIN, GO BACK TO THE, THE ASPECT OF SCHEME FIVE IS THAT AT THIS CURRENT STATE, THE ASPECT OF REPAIR ONLY, REPAIR ONLY HAS BEEN DISCUSSED IN A VERY NARROW BAND.

IF YOU TRY TO TOUCH THE BUILDING, YOU'LL CONFRONT UPDATED BUILDING CODES UP UPDATED A DA REQUIREMENTS, UPDATED H-V-A-C-C FLOW REQUIREMENTS, BECAUSE IF YOU RECONFIGURE THE INTERIOR OF THE BUILDING, THE HVA SYSTEM, THE DUCT WORK, NONE OF THAT HAS BEEN CONFIGURED TO YOUR NEW, TO YOUR NEW FLOOR PLAN.

SO IT JUST COMPOUNDS ITSELF.

AND SO WE, WE ARE MINDFUL THAT IN THE DISCUSSION WITH THE BOARD, THERE WAS THE COMMENT ABOUT JUST SIMPLY REPAIR WHAT YOU'VE GOT AND WHAT DOES THAT COST.

BUT AGAIN, THAT'S BEEN A VERY NARROW DISCUSSION OF THE REPAIRS TO HAVE A MORE COMPREHENSIVE STAY WHERE YOU ARE AND REPAIR THAT, THAT WOULD REQUIRE A COMPLETE ASSESSMENT OF THE EXISTING BUILDING.

'CAUSE THIS SIMPLIFY IT, WE SAY ONCE YOU TOUCH IT, YOU'RE GONNA TOUCH ALL ASPECTS OF IT.

AND, AND THAT'S THE, THE REASON WHY WE DON'T HAVE AN ESTIMATE.

OKAY, THANK YOU.

SO JUST QUICKLY GO OVER THE PROS AND CONS.

THIS IS ANOTHER SLIDE I THINK YOU'VE SEEN BEFORE, BUT ON THE SINGLE CAMPUS MODEL, IT'S, IT'S, IT'S THE, THE BENEFIT IS WE'RE ALL TOGETHER.

SO THE ASSUMPTION IS THAT WE'RE GOING TO COLLABORATE AND TAKE ECONOMIES OF SCALE ADVANTAGE AND BE A BETTER UTILITY.

UM, AND IT ALSO, THE BENEFIT WOULD BE IT WOULD MAX MAXIMIZE THE AMOUNT OF LAND THAT WE COULD REPURPOSE EITHER TO SELL OR TO RENT.

UH, A CON IS THAT IT'S, IT WOULD BE VERY TIGHT.

JACK DID A REALLY GOOD JOB.

HE LOOKED AT TURN RADIUSES AND YOU KNOW, YES, WE COULD MOVE VEHICLES AROUND ALL IN THAT LOCATION, BUT THERE WOULD BE CONGESTION.

AND I COULD JUST IMAGINE AT SIX 30 IN THE MORNING, AS ALL OF OUR CONSTRUCTION CREWS ARE TRYING TO GET OFF THAT CAMPUS, THERE'S LIMITED, YOU KNOW, INLETS AND OUTLETS.

IT, IT COULD BE A NIGHTMARE.

AND I DON'T WANT OUR, UH, OUR, OUR GUYS WHO ARE OUT THERE WORKING, CURING MY NAME SIX IN THE MORNING.

THE, UH, THE OTHER CONCERN I HAVE WITH THE DESIGN IS WE WANNA HAVE, OBVIOUSLY OUR BOARD MEETINGS WOULD BE THERE, ACCESS FOR THE PUBLIC, THE ENTRANCE FOR THE PUBLIC WOULD BE RIGHT OFF OF SPRING.

AND THE WAY IT'S CONFIGURED NOW, UNLESS YOU'RE HEADING EASTBOUND, THERE'S NO WAY TO TURN IN THERE.

THEY COULD COME OTHER GATES, BUT THEN WE ARE, WE'RE COMPROMISING THE, THE SECURITY OF OUR, OF OUR CAMPUS.

AND ANOTHER THING, YOU KNOW, I'VE ALWAYS THOUGHT WE'D HAVE, IT'D BE NICE TO HAVE AREAS WHERE OUR CREWS COULD PRACTICE, YOU KNOW, NEWER BACKHOE, DRIVERS PRACTICE SHORING.

IT DOESN'T AFFORD US THAT ABILITY TO HAVE SPACE FOR READING KIND OF TRAINING SITUATIONS.

UH, THE TWO CAMPUS DESIGN, UH, OBVIOUSLY WE GET OUR OPERATIONS ALL TOGETHER.

WE'RE NOT ALL TOGETHER, BUT WE, WE DO GET TO GET OUR SERVICES AND OUR CONSTRUCTION FOLKS TOGETHER.

I THINK THAT'S A HUGE ADVANTAGE.

THERE IS STILL SOME ECONOMIES OF SCALE, COPIERS, OTHER OFFICE MATERIALS THAT BUY US ALL BEING TOGETHER, WE BE ABLE TO TAKE ADVANTAGE OF.

UM, IF WE WERE TO PICK THE SCHEME, ONE, IT DOESN'T REQUIRE ANY ADDITIONAL LAND FROM THE CITY.

SO I GUESS WE COULD MOVE FORWARD WITHOUT HAVING THAT.

AS A QUESTION MARK, AS, AS WE'RE TRYING TO DEVELOP THIS, UH, I GUESS A CON ON, ON ON THIS WOULD BE JUST KIND OF WHAT I SAID BEFORE.

WE'RE NOT ABLE TO GET ALL OF OUR GROUPS TOGETHER, BUT I THINK WE GET KEY COMPONENTS OF OUR OPERATIONS FOR, FOR BETTER COLLABORATION.

AND THEN THE,

[00:45:01]

THE THREE CAMPUS MODEL.

UM, OR, UM, THE OTHER THING ON THE TWO CAMPUS MODEL, I WOULD SAY THE, ON THE ONE CAMPUS, IN TERMS OF DISRUPTIONS TO OUR STAFF DURING A CONSTRUCTION, THE ONE CAMPUS IS THE BEST BECAUSE WE KIND OF HAVE A, WE HAVE A BLANK PIECE OF LAND THAT WE CAN DEVELOP ON.

AND, UH, FOR THE MOST PART IT'LL BE NOT VERY DISRUPTIVE TO STAFF.

THE TWO CAMPUS MODEL HAS SOME DISRUPTIONS.

UH, OBVIOUSLY AS YOU'RE BUILDING THAT SPRING IT'S GONNA DISRUPT, UH, THE GAS OPERATIONS THAT ARE OCCURRING THERE.

BUT, UH, I THINK THE WAY WE COULD DESIGN IT, THERE WOULD BE AT LEAST OPERATIONS FOR AN ADMIN GROUP WOULD BE GONE BEFORE, UH, SOME OF THAT CONSTRUCTION OCCURRED.

AND THE THREE CAMPUS MODEL OBVIOUSLY A BIG, THIS IS THE MOST DISRUPTIVE TO OUR STAFF.

UM, THERE'S REALLY HAVE NOWHERE FOR THEM TO GO AND, BUT WE'D HAVE TO TAKE THAT INTO CONSIDERATION IF, IF THIS WAS THE PATH WE HELD WENT DOWN.

UM, WE ALSO LOSE OUT ON HAVING KIND OF A CENTRALIZED WAREHOUSE.

I THINK THERE'S SOME BIG COST SAVINGS THAT WE COULD IN CHALLENGES, BUT THERE WOULD BE A LARGE COST SAVINGS THAT WE COULD TAKE ADVANTAGE OF IF WE HAD A CENTRALIZED WAREHOUSE WHERE BOTH THE GAS, WATER, AND SEWER WERE UTILIZED.

AND SO UNDER THE THREE CAMPUS DESIGN, THAT'S PROBABLY NOT IT.

IT'S POSSIBLE STILL, BUT IT'S PROBABLY A, UH, NOT IDEAL.

AND, UH, I THINK THAT WAS IT FOR, SO IF THERE'S NOT ANY QUESTIONS ON ANY OF THOSE SCHEMES, I'LL MOVE ON TO TALK ABOUT THE L.

OKAY.

SO THIS IS A FLOOR PLAN YOU'VE SEEN BEFORE SO FAR.

THIS AREA IN RED IS, THAT'S, THAT'S ENERGY RESOURCES.

THAT'S THE ONLY TENANT WE HAVE SO FAR.

BUT OBVIOUSLY WE'RE GOING TO BE, UH, LOOKING TO TRY AND, UH, UTILIZE ALL OF THIS FACIL, UH, THIS FLOOR.

BUT UNLESS WE GET DIRECTION FROM THE BOARD, UM, THERE'S NO PLAN TO PUT ANY OF OUR UTILITY EMPLOYEES AT THIS LOCATION.

SO JUST KIND OF AN UPDATE.

YOU KNOW, WE PURCHASED THIS FLOOR THAT WAS $6 MILLION FROM THE GAS FUND TO, TO BUY THE, UH, BUY THE FOURTH FLOOR.

UM, SOMETIME IN THIS FISCAL YEAR, UH, THE CITY IS EXPECTING US TO MAKE A $3 MILLION, UH, PAYMENT SO THAT THEY CAN START DOING THE, THE RENOVATIONS OF ELM AVENUE.

IS THAT BUDGETED? YES, YES, I THINK, YES IT IS.

IT'S IN OUR BUDGET.

IT'S IN OUR FISCAL, I, I BELIEVE IT IS.

AND, UH, AND THE TOTAL PAYMENT, AND, AND I'M ASSUMING THIS, THE, THE REST OF IT WOULD COME MAYBE IN FISCAL YEAR 26 OR OR LATER, BUT THE ESTIMATE AT THE TIME WAS 6.2 MILLION IN TOTAL RENOVATION COSTS.

NOW SINCE THEN, THEY HAVE MENTIONED TO US THAT THEY'VE, THEY FOUND THAT THE HVAC SYSTEM THERE IS IN MORE NEED OF REPAIR THAN THEY THOUGHT EARLIER.

SO THEY HAVE NOT SAID HOW MUCH MORE, BUT THEY JUST LET US KNOW THE OVERALL COST WILL BE HIGHER THAN 6.2 MILLION.

SO AS I MENTIONED EARLIER, ALL WE HAVE IS SO FAR AS ENERGY RESOURCES TO UTILIZE THE FLOOR.

AND, UM, AS WE MOVE FORWARD, WE WOULD ACTIVELY WORK WITH THE CITY TO FIND, UH, MAYBE ANOTHER DEPARTMENT THAT WOULD WANT TO, TO RENT THE SPACE.

AND, AND WE'RE GONNA BE FOCUSED ON CITY DEPARTMENTS BECAUSE THE WAY THAT THE CITY GOT MUNICIPAL BONDS FOR THE PURCHASE OF THIS BUILDING RESTRICTS IT TO THE, THE RENTAL SPACE HAS TO BE USED WITH OTHER PUBLIC ENTITIES.

AND, UM, THE CITY IS, YOU KNOW, I'VE HAD A FEW MEETINGS WITH MYSELF AND ANTO AND THEY REALLY ARE EXPECTING IN THE EARLY CALENDAR YEAR OF 25, IDEALLY PROBABLY NEXT MONTH, THEY WOULD LIKE US TO HAVE AN ANSWER ABOUT WHAT OUR PLANS ARE FOR THE PROPERTY AND, AND SEND THE MONEY.

SO WHEN WE GET TO THE FULL RETREAT, WE'LL, WE'LL TALK MORE ABOUT THAT.

SO I MENTIONED EARLIER THE PROPERTY APPRAISAL.

UH, IT WAS CONDUCTED BY, UH, A CONSULTING FIRM FOR BOTH WARDLOW AND SPRING.

THE VALUE WAS ESTIMATED AROUND 55 MILLION.

THAT'S IF WE WERE TO SELL, IF WE WERE TO RENT.

AND THAT'S, SORRY, JUST REAL QUICK.

IS THAT BASED ON CURRENT? UH, I, I THINK THEY LOOKED AT COMPS AROUND THE AREA TO COMPARE, TO TRY AND GET AN ESTIMATE OF WHAT THEY THINK THE, THE VALUE OF THE PROPERTY IS.

UH, BUT AS IT'S CURRENTLY ZONED, DON'T THANK YOU.

OH, YES.

THAT'S BASED ON CURRENT ZONING.

YES,

[00:50:01]

THAT IS CORRECT.

AND, AND WE ALL, AND WE PROBABLY, TO GET THE FULL VALUE OF THE PROPERTY, WE WOULD HAVE TO HAVE IT REZONED.

'CAUSE RIGHT NOW THIS IS ZONED INSTITUTIONAL, RIGHT? I DIDN'T KNOW EXISTED.

AND THEN THERE'S ALSO WHERE THE GAS CAMPUSES, IT'S ZONED, UH, INDUSTRIAL.

BUT I, I MEAN, I ASSUME IT WOULDN'T BE THAT CHALLENGING FOR US TO HAVE IT REZONED FOR A DIFFERENT TYPE OF, WELL, I, I DON'T KNOW WHETHER IT WOULD BE CHALLENGING OR NOT THAT THAT WOULD BE YET.

ANOTHER ADDITIONAL STEP, UH, TO PUT TOGETHER IN AN IMPLEMENTATION PLAN WOULD BE TO WORK WITH THE CITY AND EXPLORE THE OPTIONS AND THEN STEP YOUR WAY THROUGH WHAT THOSE OPTIONS ARE WITH THE CITY.

WE, WE HAVE LIMITATIONS UNDER THE LAW, UH, THAT WE HAVE TO OFFER THE PROPERTIES FOR CERTAIN USE BEFORE WE CAN OPEN THEM TO THE GENERAL MARKET.

I UNDERSTAND WHAT YOU'RE SAYING.

UH, I HAD PRIOR EXPERIENCE WITH THAT.

WE WOULD CONSULT WITH THE CITY ATTORNEY'S OFFICE TO CAREFULLY UNDERSTAND WHAT OUR OPTIONS ARE.

YES.

DEPENDING ON HOW YOU PLAN TO DISPOSE OF PUBLIC LAND, YOU CAN ENCOUNTER CERTAIN STATE REQUIREMENTS ON THAT DISPOSITION.

OKAY.

UH, ON THE, ON THE RENT, THEY, THEY ESTIMATED THAT WE WOULD, WE COULD GENERATE FROM EACH PROPERTY ABOUT 3.3 MILLION PER YEAR, BUT OBVIOUSLY WE WOULD, THERE WOULD BE SUBSTANTIAL CAPITAL WE WOULD HAVE TO INVEST TO MAKE THIS PROPERTY PREPARED FOR RENT.

KEVIN, JUST, JUST FOR CLARIFICATION, SO WARDLOW AND SPRING ARE VALUED AT $55 MILLION EACH, EACH.

AND YOU JUST SAID EACH PROPERTY COULD GENERATE 3.3 MILLION.

AND THERE YOUR BULLET POINT SAYS, RENTING THE ENTIRE PROPERTY.

CAN YOU CLARIFY? YEAH, SO I'M, I'M JUST SAYING WHETHER WE RENT WARLOW OR WE RENT SPRING, THEY'RE ESTIMATING THREE POINT.

SO I GUESS IF WE RENTED BOTH, IT WOULD BE 6.6 MILLION.

GOT IT.

THANK YOU.

ALRIGHT.

UM, UH, WE MENTIONED THE, THE REZONING, YOU ASKED THAT QUESTION ALREADY.

SO YES, WE WOULD HAVE TO HAVE IT REZONED TO PROBABLY, THAT'S A GOOD QUESTION.

I DON'T KNOW WHEN THE, WHEN THE EVALUATION WAS DONE, IF THEY WERE ASSUMING WE WOULD GET REZONED OR IF THEY WERE EVALUATING BASED ON THE FACT THAT IT'S, IT'S HOW IT'S CURRENTLY ZONED, BUT IT WOULD ONLY BE UPSIDE IF WE COULD HAVE IT REZONED FOR A MORE, I HAVE A QUESTION.

UM, SO IN ORDER FOR US TO MAKE A DECISION ON THE ELM PROPERTY, WHICH SOUNDS LIKE IT'S IMPERATIVE THAT WE DO THAT SOON, ISN'T THAT DECISION CONTINGENT ON OUR ABILITY TO REZONE THESE OTHER PROPERTIES, LIKE UNDERSTANDING HOW COMPLIANT THE CITY WOULD BE IN ALLOWING US TO REZONE THAT? ONE OF THE GOALS THAT I HAD AS WE WORKED TOWARDS THE OUTCOMES OF THE RETREAT IS THAT OUR DISCUSSION IN THE RETREAT WOULD LAY OUT THE DIFFERENT COMPONENTS AND PLACE CLEARLY IN THE BOARD'S PERSPECTIVE, WHAT DECISIONS ARE INDEPENDENT, WHAT DECISIONS ARE PERHAPS IN PARALLEL.

I, I VIEW THE ELM OFFICE DECISION IS SOMETHING IN PARALLEL WITH THE DECISIONS WE MAKE ON THE CAMPUS.

IT ACTUALLY HAS A SHORTER TIMELINE.

UH, AND YET AT THE SAME TIME INVOLVES A SERIES OF STEPS WITH THE BOARD, UH, AND A SERIES OF MEETINGS THAT ALLOW YOU TO THEN GUIDE STAFF AS TO THE DECISIONS THAT WE FACE.

THANK YOU.

AND JUST THE LAST BULLET POINT, I'LL, I'LL, IF ANY, ANY OF OUR DESIGNS THAT RELY ON REVENUE FROM EITHER RENTING OR SELLING ONE OF OUR SURPLUS PROPERTIES, UH, IT JUST, IT BRINGS IN SOME INHERENT RISK.

UM, 'CAUSE AT SOME POINT WE'RE GONNA HAVE TO FIGURE OUT A FINANCIAL MODEL ON HOW WE'RE GOING TO PAY FOR ALL THIS.

UH, THERE'S GONNA HAVE TO BE ESTIMATES ON RATE PAYER IMPACTS, AND SO WE'D HAVE TO DECIDE HOW MUCH OF THE, THE PROCEEDS FROM SALE WE WANT TO INCLUDE IN OUR ESTIMATES.

AND THEN ONE BULLET I SKIPPED OVER HERE, IT BOTH THESE, BOTH THE SPRING PROPERTY AND WARLOW ARE OWNED BY THE WATER FUND.

AND SO I'M ASSUMING THAT THE PROCEEDS CAN ONLY GO AND SUPPORT THE WATER FUND, BUT THAT WILL HAVE TO BE LOOKED AT AS WELL.

UH, YEAH, I DUNNO IF YOU KNEW THAT.

SO THE SPRING PROPERTY'S OWNED BY THE WATER DEPARTMENT OR IT'S ALWAYS BEEN OWNED BY THE WATER DEPARTMENT.

AND SO IT'S OWNED, IN MY OPINION, IT'S OWNED BY THE WATER FUND.

GOOD GAS WATER TRANSFER ONCE A YEAR FOR THE EQUIVALENT VALUE OF WHAT THE RENT SHOULD BE ON GAS CAMPUS.

THIS IS WHY , I'M GLAD YOU DID.

UH, IT'S AN IMPORTANT QUESTION.

UM, AND WE CAN PROVIDE YOU THE HISTORY AND BACKGROUND RELATED TO THAT QUESTION.

AND SO RATHER THAN CIRCLING AROUND IT ANY FURTHER TO DATE, WE DON'T HAVE THAT.

AND SO THAT'S, I CAN GIVE YOU THE BACKGROUND AND THE HISTORY

[00:55:01]

ON THAT AND WE CAN DISCUSS IT AT, AT ANY TIME.

BUT TO THE POINT OF YOUR QUESTION, THE ANSWER IS NO.

THERE, THERE IS NO TRANSFER.

AND SO I, IF WE WERE TO USE HYPOTHETICAL, UH, UH, 55 MILLION FROM, UH, LET'S SAY WE SELL BOTH PROPERTIES 110 MILLION AND, AND WE USE THEM TO CONSTRUCT A NEW, UH, SINGLE CAMPUS, DOES IT MATTER WHETHER OR NOT THE WATER FUND IS THE SOLE BENEFICIARY OF THE PROCEEDS FROM BOTH PROPERTIES? I, I THINK IT WOULD BECAUSE EVENTUALLY WE WOULD HAVE TO, UM, ALLOCATE TO BOTH THE GAS, THE SEWER AND THE WATER FUND IN, IN YOUR ONE CAMPUS MODEL EXAMPLE.

AND WE WOULD HAVE TO ALLOCATE HOW MUCH THE GAS FUND IS GOING TO PAY OR ADMINISTRATION SPACE, GARAGE SPACE, UH, SHOP SPACE.

UM, AND SO THAT WOULD HAVE TO BE DETERMINED.

BUT, YOU KNOW, WE WOULD HAVE TO ANSWER THAT QUESTION.

I THINK THE WATER, THE PROCEEDS FROM THIS WOULD HELP THE WATER FUND, BUT I, I THINK GAS FUND WOULD STILL HAVE TO GO OUT AND, AND BORROW OR RAISE RATES TO PAY ITS PORTION.

AGAIN, I, I THINK, YOU KNOW, AS WE HEAD INTO THE RETREAT AND THE RETREAT ISN'T THE, THE ONLY SPACE, BUT ONE OF THE ELEMENTS OF THE RETREAT IS TO LAY OUT ALL OF THESE ELEMENTS, RIGHT? SO JUST IN THIS DISCUSSION OF THE WATER FUND BECOMES THE DISCUSSION, THEN WHATEVER DECISION GETS MADE, IT IS THE DECISION FOR ITS OWN MERITS.

AND THEN IN THE CONTEXT OF THAT, WE ASSESS WHAT IS THE BACK AND FORTH ON THE FUNDS.

THERE'S A NUMBER OF WAYS TO CHARACTERIZE IT.

FOR EXAMPLE, THE ASPECT OF CONSOLIDATION AND STUFF LIKE THAT IN THESE SCHEMES, WE HAVE NOT CONSOLIDATED GAS OPERATIONS OVER HERE ON THIS CAMPUS.

IN ESSENCE, WE'RE EXPANDING AND USING ALL CAMPUSES TO THE EXTENT THAT THOSE ARE WATER PROPERTIES TO BEGIN WITH.

AND THE SALE OR MANAGEMENT BENEFITS, THE WATER FUND, THAT I THINK IS A NET BENEFIT FOR THE MATTER AT HAND, WHICH IS TO HAVE CONSTRUCTION TAKE PLACE ON PROPERTIES THAT ARE OWNED BY THE WATER DEPARTMENT.

AT THE SAME TIME, IF THERE'S INVESTMENTS MADE, DEPENDING ON HOW THOSE ARE BUDGETED AND CARRIED FORWARD, THAT ALSO BEGINS TO AFFECT THE DIFFERENT FUNDS.

BUT I, I THINK THERE'S SOME COMPLEXITY IN THERE.

AND THAT COMPLEXITY MERITS ITS OWN PATH OF DISCUSSION, UH, BEYOND JUST SIMPLY, UH, AN UP OR DOWN DECISION ON WHICH OPTION TO, TO CHOOSE.

THE, UH, THE ONLY IS THE ONLY LEGAL DOCUMENT THAT, THAT, UH, HELPS US DETERMINE THE WATER FUND VERSUS THE GAS FUND VERSUS SEWER FUND.

IS THAT THE, THE CITY CHARTER LANGUAGE? IS THAT THE WHOLE ENTITY OR, OR LEGAL REQUIREMENTS THAT WE NEED TO SATISFY WHEN WE'RE TALKING ABOUT MOVING FUNDS BETWEEN, IS THERE ANY OTHER LEGAL, LIKE THEY, OR WELL UNDER, I MEAN YOU HAVE THE CHARTER, BUT WATER AND SEWER ARE PROP TO 18 GOVERNED UTILITY SERVICES.

BUT CONSEQUENTLY ON THE ASPECT OF COST OF SERVICE, YOU CANNOT HAVE SUBSIDIZATION OF OTHER UTILITIES OR OF OTHER SERVICES.

YOU CANNOT TRANSFER WEALTH OUT OF THOSE FUNDS, UH, THAT ARE INHERENTLY THE WEALTH OF THE RATE PAYERS.

A LOT TO THINK ABOUT.

SO MANY QUESTIONS I, I, I UNDERSTAND.

AND, AND THAT, THAT WAS, THAT WAS THE INTENTION.

INTENTION WAS TO BEGIN TO, AND, AND YOU CAN KIND OF SEE THEN HOPEFULLY OUR, OUR JOB IS TO BRING SOME OF THESE INTO THE RETREAT ITSELF TO KIND OF EXPLORE, NOT ANSWERS TO THOSE QUESTIONS, BUT RATHER HOW THOSE QUESTIONS ARE GONNA UNFOLD WITH THE BOARD AND STAFF AND HOW WE BRING YOU THE INFORMATION THAT LEADS TO ANSWERS AND IMPLEMENTATION.

OKAY.

OTHER OUTSTANDING ISSUES.

SO RIGHT NOW OUR, OUR GAS FLEET IS MANAGED BY THE CITY FLEET AND THE REST OF OUR VEHICLES IN THIS DEPARTMENT ARE MANAGED INTERNALLY BY THIS DEPARTMENT.

SO I DON'T HAVE AN ANSWER, JUST POSING QUESTIONS.

THAT'S ONE THING I THINK WE, WE NEED TO EVALUATE IS WHETHER OR NOT, UH, WE WANT TO KEEP THAT SITUATION WHERE IT'S SEPARATE OR MAYBE LOOK FOR A COMBINED EFFORT.

JUST REAL BRIEFLY, IS THERE A BENEFIT ONE WAY OR THE OTHER, UH, THAT WE PREFER TO DO ONE OVER THE OTHER? WELL, IN SPEAKING WITH TY, UM, LET'S SAY WE TOOK, LET'S SAY WE WENT AND LET, I SAID THE CITY FLEET TOOK OVER ALL OF OUR FLEET.

WE STILL NEED ACTUALLY GARAGE SPACE BECAUSE THEY WOULDN'T EVEN HAVE THE GARAGE SPACE FOR IT.

SO AS WE'RE DOING OUR CONCEPTUAL DESIGNS, WE WOULD NEED TO BUILD GARAGE SPACE AND THEN MAYBE THEY WOULD

[01:00:01]

STAFF IT AND, AND DO OUR VEHICLES, BUT WE WOULD STILL HAVE TO ACCOUNT FOR THAT IN OUR CAMPUS DESIGNS.

SO I THINK EITHER WAY, WE'RE GONNA HAVE TO BUILD GARAGE SPACE FOR, UH, ALL OF OUR FLEET.

THAT WAS MY SECOND QUESTION.

SO FLEET HAS NO MORE ROOM TO TAKE US ON, THAT'S MY UNDERSTANDING.

YES.

UM, CENTRALIZED WAREHOUSE, I MEAN, OBVIOUSLY IN THE, IN THE FIRST THREE SCHEMES THAT'S ALREADY ADDRESSED.

UH, I MENTIONED EARLIER IN THE THREE CAMPUS MODEL, IF WE WERE TO GO THAT WAY.

THERE IS, THERE IS, I DON'T KNOW IF THINK THIS IS IDEAL, BUT THERE IS AN OPTION WHERE WE COULD BUILD A, A, A CENTRALIZED WAREHOUSE AT THE SPRING LOCATION.

UH, BUT THAT WOULD REQUIRE THE, THE CONSTRUCTION FOLKS AT WARDLOW TO HAVE TO COME OVER TO SPRING TO GET, YOU KNOW, WHATEVER SUPPLIES THEY NEED.

I DON'T KNOW IF THAT'S, WE'D HAVE TO EXPLORE THAT AND FIGURE OUT IF THAT MAKES SENSE.

BUT OBVIOUSLY IF WE GO WITH SOME OF THE OTHER OPTIONS, IT TAKES CARE OF ITSELF.

WE ALSO HAVE, UH, FRIENDS AT, UH, SPRING RIGHT NOW, THERE'S SOME DIVISIONS FROM, UM, PUBLIC WORKS WHO ARE THERE.

AND OBVIOUSLY WE'RE GONNA HAVE TO TALK WITH THEM ABOUT WHAT THEIR FUTURE PLANS ARE IN THE ORIGINAL, UM, ENERGY RESOURCES PLAN.

UH, WE DID HAVE A SPACE FOR THEM, BUT WE DID NOT KNOW IF THEY WERE GOING, WE WERE GONNA REQUIRE THEM TO, TO PAY THEIR SHARE OF THE CONSTRUCTION COSTS.

AND THE ANTICIPATION WAS THAT, THAT, THAT ONCE THEY SAW THE ESTIMATE, THEY WOULD MOST LIKELY FIND SOMEWHERE ELSE TO GO.

AND I'M KIND OF ASSUMING THAT WOULD BE THE CASE THERE, BUT IT'S STILL AN UNKNOWN THAT WE, WE NEED TO HAVE PLANNED FOR.

UM, I MENTIONED ALREADY BEFORE THE ADDITIONAL LAND NEAR THE TREATMENT PLANT.

AND THEN, UM, IN SOME OF THOSE OPTIONS, UH, IF WE DO LIKE THE THREE CAMPUS PLAN, IT'S GONNA BE DISRUPTIVE.

WE'D HAVE TO PROBABLY LOOK AT SOME POTENTIAL TEMPORARY OFFICE SPACING TO MINIMIZE THE IMPACTS TO, TO WORK.

AND THEN FINALLY, THE NEXT LAST SLIDE, NEXT STEPS.

UH, SO, YOU KNOW, WE HAVE OUR BOARD RETREAT COMING UP AT THE END OF THE MONTH.

MY PLAN IS TO TAKE SOME OF THE INPUT I I I HEARD HERE TODAY AND PRESENT SOMETHING VERY, VERY SIMILAR, UH, TO THE, TO THE FULL BOARD AND, AND GET THAT, AS ANNA TOLD, MENTIONED, GET THAT FEEDBACK AND HAVE AN OPEN DISCUSSION ON, ON WHAT WE THINK IS THE BEST FOR OUR FUTURE.

UH, ONCE WE GET I AN IDEA OF WHAT OPTION WE'RE LOOKING AT, WE RETURN TO THE FULL BOARD AND, AND GET APPROVAL TO KIND OF TAKE THE STEPS TO FURTHER EXPLORE THAT DESIGN.

AND, AND BY FURTHER DES, YOU KNOW, LOOKING AT THE, LIKE, WE HAVEN'T REALLY DONE A HARD LOOK AT WHAT'S, HOW WOULD WE PAY FOR THIS? WHAT IS THE, THE FINANCIALS BEHIND IT, AND WHAT IS KIND OF THE, THE CONSTRUCTION IMPLEMENTATION, UH, SCHEDULING THAT WE WOULD, WOULD NEED TO DO.

THEN ONCE WE DO THAT, WE WOULD COME BACK TO THE FULL BOARD AND, AND IF EVERYTHING LOOKS OKAY, WE WOULD THEN START OUR IMPLEMENT IMPLEMENTATION PLAN.

SO THAT WAS, THAT WAS IT FOR ME.

ANY QUESTIONS? ? OKAY.

UM HMM.

SO TAKING FINANCE OUT OF IT, RIGHT.

UM, OF THESE OPTIONS, JUST WHAT'S YOUR OPINION? I KNOW NOTHING'S PERFECT.

YEAH.

AND THEY'RE ALL COMPROMISES AT SOME LEVEL, BUT IF YOU TOOK THE MONEY PART OUT OF IT, WHICH, WHICH ONE? I THINK EITHER SCHEME ONE OR TWO, WHICH IS THE TWO CAMPUS MODEL, THAT, THAT WOULD BE MY RECOMMENDATION.

I THINK WE GET A LOT OF ECONOMIES OF SCALE WITH OUR OPERATIONS TOGETHER AND A LOT OF OUR ADMIN TOGETHER.

AND AS I MENTIONED EARLIER, I THINK, I THINK THE ONE, UH, ONE CAMPUS MODEL, WE, WE CAN MAKE IT FIT, BUT I THINK OPERATIONALLY IT, IT COULD BE VERY CHALLENGING AND I THINK IT'D BE MAYBE VERY FRUSTRATING FOR SOME OF OUR, OUR STAFF BECAUSE OF THE SPACE IT LIMITATION.

SO OPTION TWO, NORMAL CONGESTION OF, YEAH.

IN AND OUT AND YEAH, I THINK IT COULD BE, LIKE I SAID, I, I DON'T WANT THEM USING MY NAME IN VAIN FOR THE NEXT 20 YEARS.

THANK YOU.

THANKS FOR BEING WILLING TO SAY THAT.

, COULD YOU HOP BACK TO THE LAST SLIDE? SECOND TO LAST SLIDE? NO PROBLEM.

SECOND THIS ONE OR ONE BEFORE? YEP, THAT ONE.

UH, SO THE WAY MY FINANCIAL BRAIN WORKS, UM, FINANCE COMES ABOVE, UH, AN INFLAMMATION IMPLEMENTATION PLAN.

IS THERE A REASON WHY WE WOULDN'T, UH, DETERMINE OUR FINANCING OPTIONS

[01:05:01]

AND SOURCES AND NEEDS BEFORE? YEAH.

IMPLEMENTATION PLAN.

SO THE, THE BULLETS AREN'T ORGANIZED IN A STEP BY STEP.

THE, THE WORDING MAY IMPLY THAT, BUT THAT'S NOT THE CASE.

WHAT, WHAT I WANTED TO, TO SHARE WITH YOU IS, AS, AS YOU SEE THIS UNFOLD IS IN PRIOR DISCUSSIONS, STAFF WORKING WITH THE BOARD ON THIS DIFFICULT ISSUE HAS BEEN PERHAPS ALL FOCUSED ON AN OPTION, WHICH I WOULD CALL AN OUTCOME.

AND THEN WHICH OUTCOME DO YOU LIKE WITH THE COST ASSOCIATED WITH THAT? AND I, AND I WANNA GIVE YOU THE PERSPECTIVE OF MY PRIOR ENGAGEMENT WITH METROPOLITAN WATER DISTRICT AND PERHAPS TAKE EITHER DIAMOND VALLEY LAKE, A LARGE RESERVOIR OUT NEAR HEMMIT OR INLAND FEEDER, THE MULTIPLE MILES OF, OF 16 FOOT DIAMETER TUNNEL AND PIPELINE THAT CAME OUT OF THE MOUNTAINS NEAR ARROWHEAD AND ULTIMATELY FED THAT.

AND IN EACH CASE YOU HAVE AN OUTCOME.

YOU HAVE THE PROJECT, UH, DIAMOND VALLEY LAKE, LET'S TAKE THAT FOR EXAMPLE.

YOU, YOU HAVE WHAT ULTIMATELY IS YOU KNEW YOU WANTED TO GET TO.

AT THE SAME TIME, DIAMOND VALLEY LAKE WAS A PROGRAM THAT AT ITS VERY INCEPTION WAS THE DESIRE TO HAVE STORAGE IN SOUTHERN CALIFORNIA.

AND DIAMOND VALLEY LAKE WASN'T THE ONLY OPTION.

THERE WERE MULTIPLE OPTIONS.

THOSE OPTIONS WERE WORKED TOGETHER BETWEEN STAFF AND THE BOARD AND IDENTIFIED, AND IT WAS IN A COMPREHENSIVE PLAN THAT WOULD LEAD TO DECISIONS AND THEN IMPLEMENTATION.

AND EVEN IN IMPLEMENTATION, EVEN IN THE FACT THAT DIAMOND VALLEY HAD BEEN CHOSEN AS THE LOCATION AS ONE EXAMPLE, THE FOOTPRINT OF DIAMOND VALLEY WAS GONNA ALTER ONE OF THE KEY WATER SUPPLY CANALS THAT SUPPLIED WATER TO SAN DIEGO CAMP.

SO NOW THERE HAD TO BE ADDITIONAL WORK TO BE DONE IN ADDITION TO THE DAM ITSELF.

AND THAT HAD TO BE PLACED CORRECTLY, INCLUDING FINANCIAL AND THOSE THINGS.

IN ADDITION TO THAT, THE FINANCING PLAN WHERE THAT HAD TO BE LAID OUT, BONDING AND SO FORTH, HAD TO BE SCHEDULED IN A PARTICULAR WAY.

I, I ONLY HIGHLIGHT THAT BECAUSE I FEEL THAT WHAT WE'RE LOOKING AT HERE IS THE BEGINNINGS OF A PROGRAM.

AND OUR JOB AS STAFF WITH YOU, THE BOARD, IS TO LAY OUT THOSE ELEMENTS OF THE PROGRAM PROPERLY SO THAT TOGETHER STAFF AND BOARD CAN MAKE THE DECISIONS THEY NEED TO MAKE, PUT IN MOTION THE THINGS THEY NEED TO PUT IN MOTION AND PROPER SEQUENCE.

SO AT THE END, THE OUTCOME IS THE OUTCOME THAT WE HAVE JOINTLY WORKED TOGETHER ON AND CHOSEN AS THE DIRECTION TO GO THAT WE ULTIMATELY GET TO A REVISED CAMPUS THAT HOUSES US IN A PARTICULAR WAY AND DOES THINGS THAT WE HOPE THAT IT WOULD.

BUT THAT IN AND OF ITSELF IS ONLY AN OUTCOME.

THE PROGRAM HAS TO BE PUT TOGETHER COMPREHENSIVELY.

AND, AND I BELIEVE THAT THE RETREAT WILL SET THOSE INITIAL STEPS IN MOTION TO DO THAT WITH YOU.

THAT THAT'S THE GOAL.

SO ANOL, COULD YOU TELL ME WHAT, WHAT THE PROGRAM IS? WHAT'S THE GOAL OF THE PROGRAM THEN? THE PROGRAM, IN MANY WAYS, THE PROGRAM REFLECTS SOMETHING THAT CAME OUT OF THE INFORMATION WORKSHOP.

SO IN THE INFORMATION WORKSHOP ON WATER, WHICH IS NOT NECESSARILY PARTICULAR IN SO MANY DIMENSIONS TO WATER, THERE'S INFORMATION IN THAT WORKSHOP THAT'S PARTICULAR TO ALL THREE UTILITY SERVICES.

AND IF YOU RECALL, THERE WAS A DISCUSSION THAT INFRASTRUCTURE IS AGING, RIGHT? AND I MADE THE COMMENT THEN, AND I'LL MAKE THE COMMENT NOW, THAT WHEN WE THINK ABOUT INFRASTRUCTURE, WE, IN OUR OPERATIONS, IN OUR EQUIPMENT, IN OUR HOUSING OF OFFICE SPACE, WE'RE PART OF THAT INFRASTRUCTURE.

THIS INFRASTRUCTURE IS AGING AND ITS ABILITY TO PROVIDE AND DELIVER SERVICE IN A PROPER MANNER IS ALSO BECOMING DIFFICULT.

AND SO THE OUTCOME THAT WE WANT TO GET TO IS AN UPGRADING OF THIS KEY ELEMENT OF OUR INFRASTRUCTURE INTO SOMETHING THAT IS OPTIMIZED FOR SERVICE AND WORKS FOR THE FUTURE THAT IS CRITICALLY AS IMPORTANT AS THE PIPELINE UPGRADES, THE PIPELINE REPLACEMENT, THE TANK REPAIRS, UPGRADES TO THE TREATMENT PLANT, EVERYTHING THAT WE PUT IN MOTION IN THE CIP ON A REGULAR BASIS TO UPGRADE AND MAINTAIN IN THE SAME WAY WE REACH CERTAIN POINTS IN TIME.

AND I THINK THIS IS A CRITICAL ONE WHERE WE NEED TO UPGRADE THE INFRASTRUCTURE THAT WE, OURSELVES ARE HOUSED IN, IN ORDER TO DELIVER THAT SERVICE.

THAT THAT IS IN ESSENCE THE CORE OUTCOME

[01:10:01]

THAT WE WANT.

WE WANT AN UPGRADED INFRASTRUCTURE THAT IS US PROVIDING THAT SERVICE.

OKAY.

SO BY, BY FRAMING THIS, NOT AS A PROJECT, BUT A PROGRAM, THEORETICALLY OUR DECISIONS SHOULD BE EASIER, IT SHOULD BE EASIER FROM A PROGRAM PERSPECTIVE MM-HMM .

THAT YOU GO, IT IS INHERENT IN ORDER TO MAKE THAT DECISION ON A PROGRAM THAT STAFF WORKING WITH, YOU PUT TOGETHER ALL ELEMENTS OF THE PROGRAM.

SOME OF THOSE WILL BE IN PARALLEL, SOME OF THOSE WILL BE FASTER.

YOU KNOW, I TOLD YOU THE DAM IMPACTED THE CANAL, BUT ALL OF A SUDDEN THIS SEPARATE PROJECT HAD TO OCCUR AND HAD TO OCCUR QUICKLY.

THEY HAD TO REVISE THE CANAL AND MOVE ITS LOCATION.

RIGHT.

ELM STREET IS KIND OF LIKE THAT.

WE, WE HAVE ALL OF THESE CORE ASSETS.

ONE OF THEM IS CRITICALLY IMPORTANT AND ON ITS OWN SCHEDULE AND THE CITY'S DEMANDING.

NOW, ONE OF THE BENEFITS OF THAT IS IT HAS A REVENUE STREAM, RIGHT? AND THAT REVENUE STREAM GOES TO A PARTICULAR FUND AS WELL.

OKAY.

THAT'S FINE.

THAT MEANS THAT NO MATTER THE OPTIONS WE GIVE YOU, THE PROGRAM THAT WE DECIDE ON, IT WILL HAVE AN ELM STREET COMPONENT TO IT THAT HAS TO BE CARRIED OUT.

IT NEEDS A PROJECT LEAD, IT NEEDS SOMEBODY TO LEAD IT, IT SEEMS, NEEDS SOMEBODY TO REPORT TO THE BOARD ON A REGULAR BASIS ON HOW IT'S GOING, SO ON AND SO FORTH.

THESE ARE THE ELEMENTS OF PROGRAM, PROGRAM MANAGEMENT THAT TO ME REPRESENT THE DIFFERENT, UH, DIFFERENT STRUCTURE FOR THE STAFF WORKING WITH THE BOARD.

OKAY.

GOT, THANK YOU.

I UNDERSTAND.

OKAY.

WILL WE GET A DEEPER DIVE AT THE RETREAT, UH, ON FINANCING OR DETAILS ON SALE OR THE, MY INTENTION IS TO PROVIDE AS MUCH DETAIL AS WE POSSIBLY CAN IN TERMS OF WHAT OUR FINANCING OPTIONS ARE.

YOU KNOW, KEVIN BEGAN TO LAY OUT JUST A LITTLE SNIPPET OF THAT, WHICH IS, OKAY, SO WE'RE GOING TO TRY TO MANAGE THESE COSTS, RIGHT? UM, BUT AS WE DO THAT, THEY'RE GONNA FALL ON CERTAIN FUNDS TO BE DEALT WITH.

AND SO WHEN THEY DO THAT, YOU'LL SEE IMPACTS TO RATES AND SO FORTH.

WE WON'T BE ENTIRELY ABLE TO DO THAT AT THE RETREAT ITSELF.

I WON'T HAVE THE COMPLETE FINANCIAL ANALYSIS, BUT MY GOAL IS TO BEGIN TO SHARE WITH YOU HOW WE'RE GONNA WORK TOGETHER SO THAT YOU CAN SEE THOSE LAID OUT IN A COMPREHENSIVE MANNER THAT YOU CAN SAY, OKAY, I KNOW EXACTLY WHAT I'M PROPOSING AND WHAT THE CONSEQUENCES OF IT ARE.

YOU, YOU HAVE A PRETTY TALL ORDER FOR THAT RETREAT.

.

WELL, , IT'S A QUESTION OF MANAGING EXPECTATIONS, RIGHT? SO THE GOAL IS TO ONE, SET THE EXPECTATIONS CORRECTLY FOR THE RETREAT.

AND I THINK IT'S INHERENT TO ME IN TERMS OF ME WORKING WITH YOU, THE BOARD, THAT YOU NOT VIEW THESE ASPECTS OF RETREAT.

JUST LIKE I MADE THE COMMENT ABOUT THE COMMITTEE THAT YOU NOT VIEW THESE AS SINGULAR ITEMS. THAT THE RETREAT IS A STRUCTURE OFF OF WHICH YOU RECEIVE INFORMATION AND OFF OF WHICH YOU HELP PLAN DECISIONS.

AND THAT MEANS THAT IT ISN'T THE ONLY RETREAT AND IT ISN'T THE ONLY TIME YOU WILL HAVE A RETREAT.

IT REPRESENTS YET ANOTHER OPTION ON HOW YOU CAN COME TOGETHER, DISCUSS THINGS WITH STAFF AND LAY DIRECTION.

ANY, ANYTHING ELSE DONE? JUST ANY MORE COMMENTS, QUESTIONS? NO, I THINK WE'RE GOOD.

ALRIGHT.

THANK YOU.

THANK YOU.

UH, SO PUBLIC COMMENTS.

IS THERE ANYONE

[PUBLIC COMMENT]

WISHING TO SPEAK TO A NON AGENDA ITEM? BEING NONE PUBLIC COMMENT IS NOW CLOSED.

UH, ANY ANNOUNCEMENTS?

[ANNOUNCEMENTS]

NO ANNOUNCEMENTS.

NO ANNOUNCEMENTS.

SO THE MEETING

[ADJOURNMENT]

IS ADJOURNED.

THANK YOU.