* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. MY WATCH SAYS [00:00:01] IT'S NINE O'CLOCK. SO , UM, [CALL TO ORDER] I CALL THE MEETING TO ORDER. MAYDAY HAPPY MAY 1ST, EVERYBODY, UM, PLEDGE OF ALLEGIANCE WILL [PLEDGE OF ALLEGIANCE] BE OFFERED BY, UH, JOSEPH VASO INDIVISIBLE WITH LIBERTY AND JUSTICE FOR ALL. THANK YOU, JOE. [ROLL CALL] OKAY, UH, COLIN DINA FOR THE ROLL CALL. PRESIDENT MCGUIRE HERE, VICE PRESIDENT SCOTT. SECRETARY CORDERO. HERE. COMMISSIONER SHANNON IS ABSENT. COMMISSIONER RAINEY IS ABSENT. YOU HAVE A QUORUM. THANK YOU FOR THE RECORD. COMMISSIONER SHANNON AND RAINEY ARE EXCUSED FROM TODAY'S BOARD MEETING. ARE THERE ANY OBJECTIONS FROM THE BOARD? SEEING NONE. UM, [1. 25-55159 Recommendation to approve April 3, 2025 Board meeting minutes.       Suggested Action: Approve recommendation. ] WE'LL NOW MOVE ON TO THE REGULAR AGENDA. ITEM NUMBER ONE IS TO APPROVE APRIL 3RD, 2025. BOARD MEETING MINUTES. DO I HAVE ANY PUBLIC COMMENT? DO I HAVE ANY COMMISSIONER COMMENT? DO I HAVE A MOTION TO APPROVE? MOTION SECOND. THANK YOU. FIRST AND A SECOND. ALL IN FAVOR SAY AYE. ANY OPPOSED? THE MOTION CARRIES. ITEM [2. 25-55160 Recommendation to adopt RFP to Provide Design Engineering Services for the Orange Ave. Transmission & Springdale Drive Distribution Main CIPP Lining Rehabilitation Project and award a contract to Dudek, a California corporation, for the Orange Avenue Transmission & Springdale Drive Distribution Main CIPP Lining Rehabilitation Project (MC-5259 & MC-5265), in a total amount not to exceed $306,691 for a period until Project completion as determined by the General Manager, and authorize the General Manager to execute all documents necessary to enter into the contract, including any necessary subsequent amendments.       Suggested Action: Approve recommendation. ] NUMBER TWO IS TO ADOPT RFP AND RFP TO PROVIDE DESIGN ENGINEERING SERVICES FOR THE ORANGE AVENUE TRANSMISSION AND SPRINGDALE DRIVE DISTRIBUTION MAIN CIPP LINING REHABILITATION PROJECT AND AWARD, A CONTRACT TO DO DECK AND I CALL ON THOMAS CASSIDY. THOMAS. HI, MORNING COMMISSIONERS. UM, MY NAME IS THOMAS CASSY. I'M AN ENGINEERING ASSOCIATE HERE AT THE DEPARTMENT AND I'M HERE TO SEEK APPROVAL FOR DESIGN ENGINEERING SERVICES OF THE ORANGE AVENUE TRANSMISSION MAIN AND SPRINGDALE DRIVE DISTRIBUTION. MAIN THIRD IN PLACE PIPE LINING PROJECT. NEXT SLIDE. MM-HMM . SO LITTLE BACKGROUND ON WHAT THIS CURD IN PLACE PIPE IS A-K-A-C-I-P-P LINING TECHNOLOGY IS A TRENCHLESS PIPELINE REHABILITATION TECHNOLOGY THAT ALLOWS US TO INSTALL A RESIN IMPREGNATE LINER INTO AN OLD EXISTING PIPELINE TO ADD STRUCTURAL INTEGRITY AND EXTEND THE SERVICE LIFE OF UP TO 80 PLUS YEARS. UH, THE REASON THAT WE ARE LOOKING TO MOVE FORWARD WITH THIS TECHNOLOGY RATHER THAN A FULL PIPELINE REPLACEMENT IS BECAUSE IT ALLOWS FOR FASTER INSTALLATION, LESS CONSTRUCTION TIME, LESS DISRUPTIONS TO THE COMMUNITY, AND OVERALL IT IS A COST SAVING MEASURE. NEXT SLIDE PLEASE. SO FOR OUR DESIGN SCOPE, WE ARE LOOKING AT A PROJECT DURATION OF ABOUT THREE MONTHS. UH, THE DESIGN SERVICES ARE GONNA ENTAIL THE ASSESSMENT OF PORTABLE WATER PIPELINE TO EVALUATE THE CIPP INSTALLATION. AND WE ARE GOING TO DESIGN AND DEVELOP TWO SETS OF CONSTRUCTION PLANS FOR DEVELOPMENT. AND SHOWN ON THE MAP HERE ARE, ARE TWO PROJECT LOCATIONS. UH, FIRST ONE IS GONNA BE ON ORANGE AVENUE, AND SECOND ONE IS ALONG SPRINGDALE DRIVE IN COUNCIL DISTRICT SEVEN, I BELIEVE. NEXT SLIDE. SO OUR FIRST LOCATION IS ALONG ORANGE AVENUE BETWEEN WARDLOW ROAD AND BIXBY ROAD. AROUND THE CORNER HERE. UH, WE ARE LOOKING TO REHABILITATE 2,800 FEET OF EXISTING 20 INCH CAST IRON PIPELINE THAT WAS ORIGINALLY INSTALLED IN 1946. AND THIS LOCATION HERE IS WHERE WE HAD THE MAIN BREAK BACK IN OCTOBER. I SECOND LOCATION THAT WE ARE LOOKING TO REHABILITATE IS ALONG SPRINGDALE DRIVE, A DISTRIBUTION MAIN. UH, THE PROJECT LIMITS ARE GONNA BETWEEN BE BETWEEN HARBOR STREET AND SANTA FE AVENUE. WE ARE LOOKING TO REHABILITATE APPROXIMATELY 1900 LEO OF EXISTING 12 INCH CEMENT PIPELINE THAT WAS ORIGINALLY INSTALLED IN 1974. NEXT SLIDE. SO THIS PART WHERE I'M GONNA READ OFF THE BOARD LETTER IN MARCH 10TH [00:05:01] OF THIS YEAR, A REQUEST FOR PROPOSAL WAS DISTRIBUTED TO 22 CONSULTANTS THAT WE HAVE ON OUR ON-CALL PROFESSIONAL ENGINEERING BENCH TO PROVIDE THE DESIGN ENGINEERING SERVICES FOR THIS PROJECT. AND ON MARCH 26TH, TWO PROPOSALS WERE RECEIVED AND EVALUATED BY STAFF, UH, FOLLOWING THE EVALUATION. STAFF RECOMMENDS THAT DUE DECK IS SELECTED AS THE DESIGN CONSULTANT FOR THIS PROJECT BASED ON THEIR PAST PROJECT EXPERIENCE AS WELL AS THE REASONABLENESS OF THEIR FEES COMPARED TO OTHER PROPOSALS. SO OUR RECOMMENDATION IS TO AUTHORIZE THE GENERAL MANAGER TO ISSUE TASK ORDER NUMBER 20 FROM OUR ON-CALL PROFESSIONAL ENGINEERING CONTRACT, UT THREE SEVEN NINE THREE TO DO DECK FOR THIS PROJECT HERE IN THE AMOUNT NOT TO EXCEED 306,069 $691. ARE THERE ANY QUESTIONS? THANK YOU, THOMAS. UH, DO I HAVE ANY PUBLIC COMMENT? COMMISSIONER COMMENTS? YES, COMMISSIONER SCOTT. THANK YOU. UM, SO IS THIS A NEW PROCESS FOR US? THE C-I-P-P-C-I-P-P TECHNOLOGY IS A RELATIVELY NEW TECHNOLOGY THAT'S BEEN DEVELOPING IN THE LAST COUPLE DECADES. SO THIS IS ONE OF OUR FIRST PROJECTS THAT WE ARE REALLY IMPLEMENTING THIS. GREAT. UH, ARE WE LOOKING AT THIS LIKE AS A PILOT STUDY? UH, WE HAVE DONE A PILOT STUDY BEFORE. UM, UM, PART OF THIS PROJECT IS TO ALSO EVALUATE WHETHER CIP IS REALLY THE METHOD THAT WE WANT TO MOVE ALONG WITH. THERE ARE OTHER CENTRALIST REHABILITATION METHODS THAT WE'RE GONNA HAVE OUR CONSULTANT EVALUATED IN THIS PROCESS AND LOOKS LIKE ROB WANTS TO SAY SOMETHING HERE. SO I WANTS TO SAY SOMETHING. UH, IF I CAN COMMISSIONER SCOTT. UH, WE DO USE CIP EXTENSIVELY ON THE SEWER SIDE. UM, WE, WE DO SEVERAL THOUSAND LINEAR FEET A YEAR OF, UH, SEWER PIPE REHABILITATION USING CIP. SO THIS IS OUR FIRST FORAY INTO CIP ON THE WATER SIDE, RIGHT? YES. UH, JUST BACK OF THE NAPKIN MATH. UM, SO THIS IS 306,306,000 FOR, FOR THIS PROJECT WE KNOW. OR CAN YOU GIMME A ROUGH IDEA? UH, WHAT IT WOULD BE FOR US TO REPLACE THOSE LINES INSTEAD? AS FAR AS THE DESIGN COST GOES OR? OH, THE 3 0 6 IS JUST FOR THE DESIGN? IT'S JUST FOR DESIGN. AH, I GOTCHA. OKAY. SO THE HIGH LEVEL ESTIMATE WE GOT FOR CONSTRUCTION FOR THIS PROJECT IS ABOUT $2.2 MILLION. OKAY. IF WE WERE TO OPEN CUT, UH, THE, THE PROJECT, UH, WE'RE TALKING ABOUT PROBABLY 50 TO 60% MORE, UH, ON TOP OF THAT. OKAY. THAT'S PERFECT. THANK YOU. MISSION CORDERO. SO THAT PROMPTED A, AN IMAGE IN MY MIND IS THOUGH I, TO TRY TO BETTER UNDERSTAND IT. IT'S KINDA LIKE WHEN YOU DO INSULATION IN YOUR HOME, YOU CAN EITHER FOR EFFICIENCY AND MAYBE A LOWER COST, DO IT BLOW IT IN AS OPPOSED TO REMOVING EVERYTHING AND THEN PUTTING IT IN. IS THAT CORRECT? THANK YOU. THAT HELPS. I DIDN'T KNOW YOU HAD THAT EXPERTISE. YEAH, . VERY GOOD. OKAY. UM, THANK YOU THOMAS. DO I HAVE A MOTION TO APPROVE? SECOND. SECOND. THANK YOU. ALL IN FAVOR? AYE. AYE. ANY OPPOSED? THE MOTION CARRIES. OKAY. ITEM NUMBER THREE [3. 25-55162 Recommendation to adopt RFP to Provide Engineering Services for the 2024 Recycled Water Master Plan Project and award a contract to AKM Consulting Engineers of Irvine, CA, to provide professional services for the 2024 Recycled Water Master Plan Project (REO-0223), in a total amount not to exceed $684,595, for a period of two years, and authorize the General Manager to execute all documents necessary to enter into the contract, including any necessary subsequent amendments.       Suggested Action: Approve recommendation. ] IS TO ADOPT AN RFP TO PROVIDE ENGINEERING SERVICES AND AWARD A CONTRACT TO A KM CONSULTING ENGINEERS FOR THE 2024 RECYCLED WATER MASTER PLAN PROJECT. AND I HAVE AMY DOG SKI. GOOD MORNING COMMISSIONERS. I'M CIVIL ENGINEERING ASSOCIATE, UH, AMY BKI. UM, AND I'LL BE PRESENTING ON THE 2024 RECYCLED WATER, UH, MASTER PLAN PROJECT. SO THE PURPOSE OF THIS PROJECT IS TO UPDATE, UH, LONG BEACH'S RECYCLED WATER MASTER PLAN FROM THE PREVIOUS MASTER PLAN, UH, WHICH WAS LAST UPDATED IN 2010. UM, THIS PROJECT WILL REQUIRE THAT THE CONSULTANT, UH, PERFORM ALL NECESSARY, UM, VALUATION ANALYSIS ON OUR EXISTING RECYCLED WATER SYSTEM, AS WELL AS RECOMMENDING NEW INFRASTRUCTURE AND REHABILITATION PROJECTS UNDER VARIOUS SUPPLY AND DEMAND SCENARIOS, UH, WITH A FOCUS ON [00:10:01] CAPITAL PLANNING, UH, FOR THE NEXT 10 TO 20 YEARS. UH, AN OVERVIEW OF THE SCOPE OF WORK GOING INTO THE DETAILS OF THIS, UH, WILL INCLUDE, UH, EVALUATION OF DEMAND SUPPLIES AND SCENARIOS, UH, SORRY, DEMAND SUPPLIES AND STORAGE, RECYCLED WATER SYSTEM, UH, RECYCLED WATER, UH, HYDRAULIC MODEL UPDATE AND CALIBRATION, UH, FACILITIES ASSESSMENT OR THE PIPELINE, AS WELL AS THE EL DORADO PUMP PUMP STATION, WHICH WILL, UH, CONCLUDE IN A 30% CONCEPTUAL ENGINEERING DESIGN REPORT AND DRAFT PLANS, UH, HYDRAULIC CAPACITY ANALYSIS, CAPITAL IMPROVEMENT PROGRAM, AND MASTER, UH, PLAN. FINAL REPORT WITH THAT, UH, THE RECOMMENDATION IS TO ADOPT RFP TO PROVIDE ENGINEERING SERVICES FOR THE 2024 RECYCLED WATER MASTER PLAN PROJECT. AWARD A CONTRACT TO A KM CONSULTING ENGINEERS OF IRVINE, CALIFORNIA TO PROVIDE PROFESSIONAL SERVICES FOR THE 2024 RECYCLED WATER MASTER PLAN PROJECT REO 0 2 2 3 IN A TOTAL NOT TO, IN A TOTAL AMOUNT, NOT TO EXCEED $684,595 FOR A PERIOD OF TWO YEARS, AN AUTHORIZED GENERAL MANAGER EXECUTE ALL DOCUMENTS NECESSARY TO ENTER INTO THE CONTRACT, INCLUDING ANY NECESSARY SUBSEQUENT AMENDMENTS. UH, A MOUTHFUL. UH, WITH THAT, UH, ANY QUESTIONS? THANK YOU, AMY. DO I HAVE ANY PUBLIC COMMENT? ANY COMMISSIONER COMMENT? I JUST HAVE A QUICK QUESTION CORD. UM, DO, DO WE HAVE A WISH LIST ON IF, IF ALL THINGS WERE GOING IN OUR DIRECTION WHERE WE'D WANNA TAKE MORE RECYCLED WATER? WE, WELL, WE WANNA FIRST MAXIMIZE, UH, THE AMOUNT WE HAVE TO OUR EXISTING CUSTOMERS. UM, AND PART OF THIS PROJECT WE'LL BE ASKING THE CONSULTANT TO LOOK AT AND EVALUATE OTHER POTENTIAL, UM, CUSTOMERS THAT WE CAN PROVIDE RECYCLED WATER TO AS LONG AS WE HAVE THE SUPPLIES TO MEET OUR EXISTING CUSTOMERS AND TAKE ON ANY NEW ONES. UM, ADDITIONALLY WITH THAT, UM, THAT'S PART OF THE REASON WHY WE HAVE THE, UM, THE UPDATE TO THE PUMP STATION IS THAT'S SIMILAR ITEM THAT WE WANT TO GET, UH, LOOKED AT AND REHABILITATED. UH, THE PUMP STATION CAN'T PROVIDE WATER. WE CAN'T REPLY, CAN'T PROVIDE RECYCLED WATER TO THANK YOU. APPRECIATE THAT. COMMISSIONER CORDERO. ONE OF THE, ONE OF THE THINGS THAT WE'RE LOOKING IN THE WATER RESOURCES PLAN UNDER DEAN'S DIRECTION IS THIS ELEMENT THAT DEMAND MANAGEMENT WATER CONSERVATION, LA COUNTY SANITATION DISTRICT REPORTS THAT THEIR GENERAL TREND IS A 40% LESS AVAILABILITY OF SEWAGE FLOWS, WHICH IMPACTS THE PRODUCTION OF RECYCLED WATER. SO WE FIND OURSELVES WITH RESOURCE CONSTRAINTS AHEAD IN TERMS OF BEING ABLE TO SUPPLY THIS ALTERNATIVE SUPPLY SIMPLY FROM THE FACT OF, AGAIN, THE REGULATORY ENVIRONMENT, CREATING AN ENVIRONMENT WHICH INDOOR WATER USAGE IS GOING DOWN. SO IN DEAN'S, UH, WATER RESOURCES PLAN, WHICH WE'RE CURRENTLY UNDERTAKING, WE WILL BE EXAMINING SOME OF THOSE RESOURCE CONSTRAINTS ON RECYCLED WATER TO TRY TO SEE WHAT THE PROJECTIONS LOOK LIKE FOR THE YEARS AHEAD. THANK YOU. THAT REALLY HELPS US. I, WELL ME, I UNDERSTAND BECAUSE WHEN WE, I GET, WE GET APPROACHED BY PEOPLE OUT IN THE COMMUNITY WHO SAY, WHY CAN'T YOU DO THIS? AND WHY CAN'T YOU DO THAT? THAT THAT VERY MUCH HELPS A LITTLE FACT SHEET MIGHT NOT. THANK YOU SO MUCH FOR THAT. AND THIS PROJECT WILL BE TAKING, UH, INFORMATION FROM THAT WATER RESOURCE. OKAY. THANK YOU. MM. A COMPLEX ISSUE. THANK YOU AMY. MR. SCOTT? NO. OKAY. DO I HAVE A MOTION TO APPROVE? MOTION AND A SECOND. THANK YOU. ALL IN FAVOR SAY AYE. AYE. ANY OPPOSED? THE MOTION CARRIES. ITEM NUMBER FOUR [4. 25-55163 Recommendation to authorize the General Manager to issue a project task order and any necessary documents, including any necessary subsequent amendments, to DRP Engineering Inc.under On-Call Professional Engineering Contract No. UT-3792 for the S-7 Sewer Lift Station Rehabilitation Project (SC-0410) in a total amount not to exceed $879,333.99, for a period of two years.       Suggested Action: Approve recommendation. ] IS TO AUTHORIZE THE GENERAL MANAGER TO ISSUE A PROJECT TASK ORDER TO DRP ENGINEERING INCORPORATED UNDER ON-CALL PROFESSIONAL ENGINEERING CONTRACT NUMBER UT 37 92 FOR THE S DASH SEVEN SEWER LIFT STATION REHABILITATION PROJECT. AND I CALL ON, DID I SAY THAT? DID I BUTCHER THAT? IT'S OKAY. MORNING EVERYBODY. IT WAS VERY CLOSE. VERY CLOSE. SO TODAY'S BOARD, UH, ITEM AGENDA IS TO, UH, AWARD A CONTRACT FOR THE ENGINEERING SERVICES FOR THE S SEVEN SEWER LIFT STATION PROJECT. SO FOR SOME BACKGROUND, UM, THIS STATION IS LOCATED IN LAKEVIEW AVENUE NEAR [00:15:01] MARINE STADIUM. IT WAS CONSTRUCTED IN 1929 AND LAST REHAB IN 2000. UH, SO WE TAKES AROUND THREE AND A HALF MILES OF GRAVITY SEWER MAINS. THE TRIBUTARY AREA IS SHOWN ON THE MAP OVER HERE. IT'S THAT NEIGHBORHOOD THAT SURROUNDS MARINE STADIUM TO THE SOUTH. UM, THE CURRENT SYSTEM IS TWO DRY PIT 14 HORSEPOWER PUMPS, A SINGLE EIGHT INCH DIP FORCE MAIN AND A 2,600 GALLON. SO THESE ARE SOME PICTURES OF THE EXISTING CONDITIONS OF THE STATION. UM, ON THE LEFT THERE YOU CAN SEE THE ACTUAL BUILDING. I'M NOT SURE IF YOU CAN SEE IT FROM YOUR VANTAGE POINT, BUT THERE'S SOME CRACKING IN THE SIDEWALK LEADING INTO THE STATION. AND THE CENTER IS THE, UH, THE DRY, THE DRY WELL, AND YOU CAN SEE A LOT OF DETERIORATED PIPE AND SUCH. IT'S AN OLD STATION. AND ON THE RIGHT HAND SIDE IS THE CURRENT VENTILATION SYSTEM, WHICH WE ALWAYS GET COMPLAINTS ON BECAUSE IT'S A LITTLE BIT TOO LOUD. SO THE OBJECTIVE OF THE PROJECT IS TO ASSESS CIVIL, MECHANICAL, STRUCTURAL AND ELECTRICAL INFRASTRUCTURE IN THE STATION. AND WE'RE GONNA BE DELIVERING A COMPLETE BID PACKAGE FOR BIDDING, UM, WHICH IS GONNA INCLUDE A NEW WET WELL AND SUBMERSIBLE PUMPS AND A NEW VALVE VAULT. UH, UPDATED PUMP CONTROLS UP UPGRADED ELECTRICAL AND COMMUNICATIONS EQUIPMENT AND A SECONDARY FORCE MAIN ON THE RIGHT HAND SIDE. OVER HERE IN GREEN, YOU CAN SEE THE EXISTING SYSTEM. AND ON THE RED YOU CAN SEE THE NEW STUFF THAT WE'RE PROPOSING. SO THAT INCLUDES A NEW VALVE BALL AND A NEW WET, WELL, A NEW FORCE MAIN ON THE TOP LEFT THERE AND SOME VARIOUS UPGRADES TO THE SITE, INCLUDING A NEW DRIVEWAY AND SOME FENCING. UH, THIS IS THE SCHEMATIC FOR THE SECONDARY FORCE MAIN. SO THE DASH RED LINE INDICATES THE CURRENT FORCE MAIN THAT WE HAVE IN SITE. AND THE ORANGE AND PURPLE ARE TWO POSSIBLE ALIGNMENTS THAT WE'RE GONNA BE UNDERTAKING. UM, WE ARE GONNA BE, UH, COORDINATING WITH PUBLIC WORKS SINCE THEY HAVE A CONFLICTING PROJECT ON AP N WAY, AND THAT'S GONNA HELP ASSESS WHICH DIRECTION WE TAKE FOR THE SECONDARY FORCE MAIN. SO ON JANUARY 1ST, 2025, WE SENT OUT AN RFP THAT WAS DISTRIBUTED TO 23 CONSULTANTS IN OUR PUMP STATION IMPROVEMENTS CATEGORY OF THE ON-CALL PROFESSIONAL ENGINEERING BENCH. ON FEBRUARY 21ST, WE RECEIVED TWO PROPOSALS AND AFTER EVALUATION STAFF RECOMMENDS DRP ENGINEERING BASED ON THEIR EXPERIENCE ON SIMILAR PROJECTS, THE PROJECT TEAM AND THE REASONABLE LIST OF THEIR FEEDS. WITH THAT, WE, WE RECOMMEND TO AUTHORIZE THE GENERAL MANAGER TO ISSUE A PROJECT TASK ORDER AND ANY NECESSARY DOCUMENTS TO DRP ENGINEERING UNDER THE ON-CALL PROFESSIONAL ENGINEERING CONTRACT FOR THE S SEVEN SEWER LIFT STATION IN AN AMOUNT NOT TO EXCEED 807 $9,333 FOR A PERIOD OF TWO YEARS. UH, WITH THAT I CONCLUDE MY PRESENTATION AND I'LL BE HAPPY TO ANSWER ANY QUESTIONS. MM-HMM. THANK YOU DANA. ANY PUBLIC COMMENT? COMMISSIONER COMMENT, COMMISSIONER SCOTT. UH, IS THIS RELATED TO THE LA 28 OLYMPICS? IT'S NOT, BUT DUE TO THE PROXIMITY, WE DEFINITELY WANNA FINISH IT BEFORE THE 2028 OLYMPICS. SO THIS HAS BEEN ANTICIPATED FOR A WHILE. YEAH, IT WAS A PART OF THE SEWER MASTER PLAN. IT WAS, UH, IDENTIFIED AS PART OF THAT. GOOD QUESTION. SEEING NO OTHERS. UM, DO I HAVE A MOTION TO APPROVE TO APPROVE? A SECOND. THANK YOU. ALL IN FAVOR SAY AYE. AYE. ANY OPPOSED? NO, THE MOTION CARRIES. THANKS, DANA. ITEM NUMBER FIVE, [5. 25-55164 Recommendation to authorize the General Manager to execute amendments to the Metropolitan Water District of Southern California (MWD) water conservation master agreements to continue partnership funding and administration of the regional commercial, industrial and institutional conservation programs and the regional residential conservation programs through 2035.       Suggested Action: Approve recommendation. ] TO AUTHORIZE THE GENERAL MANAGER TO EXECUTE AMENDMENTS TO THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA MWD WATER CONSERVATION MASTER AGREEMENTS TO CONTINUE PARTNERSHIP, FUNDING AND CONSERVATION PROGRAMS, I CALL ON JOSEPH RISSO. GOOD MORNING COMMISSIONERS. HOW ARE YOU? GOOD. UM, THANK YOU FOR THE INTRODUCTION. UM, TODAY WE'RE GONNA TALK ABOUT, UH, THE AGREEMENTS THAT HAVE BEEN IN PLACE SINCE 2005 AND 2006 WITH METROPOLITAN LARGE DISTRICT. A LITTLE BIT OF THE AGENDA TODAY, GO OVER THE BACKGROUND. UM, SOME OF THE SUPPORTING PROGRAMS THAT ARE FOSTERED BY THIS AGREEMENT. CURRENT CUSTOMER PARTICIPATION TO ABOUT 2024 RECOMMENDATION THAT WE HAVE. SO IF YOU AREN'T FAMILIAR WITH, UH, METROPOLITAN WATER DISTRICT, SOUTHERN CALIFORNIA, WHAT THEY PROVIDE LONG BEACH, UH, UTILITIES IS THE OPPORTUNITY TO, UH, TAKE PART IN A REGIONAL PROGRAM TO GIVE CUSTOMERS THE OPPORTUNITY TO APPLY FOR DEVICE REBATES ON WEBSITES SO THAT THEY CAN GET A CERTAIN PERCENTAGE BACK, UM, OF WHAT THEY'VE SPENT ON, ON THOSE DEVICES. ADDITIONALLY, WE ALSO PROVIDE, UH, PRO SPECIFIC, UH, I SAY UNIQUE CUSTOM PROGRAMS CREATES FUNDING SOURCES FOR US. TAKE ADVANTAGE OF THAT. WE CAN GO OUT TO THE COMMUNITY, CERTAIN THINGS, SOME OF THOSE, UH, PROGRAMS AND SOME OF THOSE, UH, DEVICES ARE CHANGING OVER THE YEARS. SO [00:20:01] IN COMPARISON FROM 2005 AND 2006 FOR OUR COMMERCIAL, INDUSTRIAL AND INSTITUTIONAL PROGRAMS, WE'VE SEEN TECHNOLOGY CHANGES. WE'VE SEEN DIFFERENT, UM, IMPROVEMENTS IN THE WATER EFFICIENCY FROM THE COMMERCIAL SECTOR AND EVEN MORE SO ON THE THE RESIDENTIAL SIDE. WE'VE SEEN TECHNOLOGY CHANGES FROM, UH, CUSTOMER SIDE A MI DEVICES INCREASES IN PLUMBING CODE, WHICH WOULD DIRECTLY AFFECT, UH, DEVICE CHANGES THAT METROPOLITAN SUPPORTS BASED OFF OF THE ENVIRONMENTAL PROTECTION AGENCIES. UM, REVIEWS AND DOCUMENTS DECREASE THE AMOUNT OF WATER THAT'S GOING INSIDE OF HOMES ARE BEING USED. SO WHAT THESE AGREEMENTS DO IS SET THAT IN PLACE THAT, UH, LONG BEACH UTILITIES HAS THE ABILITY TO TAKE ADVANTAGE OF THOSE FUNDS THAT IT'S CREATED, WHICH, UH, COMMISSIONER SHANNON WAS HERE 'CAUSE HE WAS ACTUALLY, UH, ABLE TO SIGN OFF IN THE 2005 AND 2006 MASTER AGREEMENTS AND IT FIRST WENT INTO EFFECT AND SUBSEQUENTLY TWO, UM, FOR A TOTAL OF FOUR FOR EACH PROGRAMS. UM, SO A TOTAL OF FOUR MASTER AGREEMENTS HAVE BEEN SIGNED OFF, UH, SINCE THAT TIME. SOME SLIGHT CHANGES THAT WERE, UH, PUTTING, UH, WITH THE WAY THAT WE WERE BEING CREDITED BY METROPOLITAN TO BE PAID OUT. IT'S ONE OF THE REASONS THE AMENDMENTS WERE MADE. ANOTHER REASON THE AMENDMENT WAS MADE WAS TO EXTEND THAT PROGRAM 20,025. SO WHAT WE'RE DOING AGAIN TODAY BY YOUR APPROVAL IS TO EXTEND THAT 2025 TO 2035 GOING ON TO TAKE ADVANTAGE OF THESE DEVICE REBATES. SOME OF THESE SUPPORTING PROGRAMS THAT YOU GUYS ARE FAMILIAR WITH. IF NOT, THEN WHAT WE'RE, WHAT WE'RE LOOKING TO DO AND CONTINUE TO DO IS OUR TURF REMOVAL PROGRAMS FOR RESIDENTIAL AND COMMERCIAL CUSTOMERS, CII CUSTOMERS, WE CAN CALL THEM, UH, AS WELL AS THE, THE DEVICE REBATES. UM, WE FIND THAT THERE'S A, A LOT OF, UH, INTEREST IN DEVICE REBATES, UM, WITH OUR CUSTOMERS, WHICH MAY TEND FOR, FOR THE IN-HOUSE, UH, PERSPECTIVE, ADJUST A LITTLE BIT BECAUSE WE'RE DOING SO MUCH OF A DIRECT INSTALL, UM, APPROACH. NOW WITH SOME OF THE FUNDING THAT WE'RE GETTING FROM THE CALIFORNIA AIR RESOURCES CONTROL BOARD, WE MAY SEE THOSE TYPES OF DEVICES DIP OFF, BUT WE'RE STILL SUPPORTING THOSE PROGRAMS FOR PEOPLE THAT DON'T WANT THE TYPE OF, UH, DIRECT INSTALLATION MANUFACTURED GOODS THAT WE'RE GIVING THEM AND THEY WANT THEIR OWN TYPE OF DEVICES. UM, WE ALSO DO, UH, WHAT'S CALLED A MEMBER AGENCY ADMINISTERED PROGRAM. THE THINGS THAT YOU MAY BE FAMILIAR FOR, FOR THE DIRECT INSTALL GARDENS PROGRAM, THOSE ARE DIRECTLY FUNDED BY THAT MAP PROGRAM AND THAT THAT MONEY'S ALLOCATED FROM METROPOLITAN ON A, A BIANNUAL BASIS. SO WE'RE ABLE TO SUPPORT THAT PROGRAM AND COMPLETELY FUND THAT BY EITHER GRANT FUNDING OR BY METROPOLITAN. UM, AND THEN THERE'S ALSO SOME, UH, SOME CUSTOMER SIDE, UH, CONTRACTORS THAT METROPOLITAN HIRES THAT LONG BEACH UTILITIES CUSTOMERS ARE ABLE TO CONTACT THEM TO DO CERTAIN THINGS LIKE HOME WATER USE EFFICIENCY SURVEYS AND LARGE LANDSCAPE EFFICIENCY SURVEYS. THOSE SURVEYS ALLOW THEM TO HAVE THAT CONTRACTOR COME ON SITE, GO THROUGH ALL OF THEIR WATER USING DEVICES, LET THEM KNOW WHICH DEVICES CAN BE CHANGED OUT, ALLOW THEM TO APPLY FOR A REBATE AND THEY CAN MOVE FORWARD AND START SAVING. UM, AND THEN SOME MORE UNIQUE THINGS. ACTUALLY, SOMETHING THAT COMMISSIONER SCOTT AND I ARE WORKING ON WITH THE, THE PUMP POD PUMP PO DRAFTS, UM, WAS RECENTLY, UH, I THINK I SAY SIX YEARS AGO, THERE WAS A PUMP POD DRAFT THAT WAS, THAT WAS DONE THROUGH THE WATER SAVINGS INCENTIVE PROGRAM THROUGH METROPOLITAN, ALLOWING LONG BEACH FIRE DEPARTMENT TO INCREASE THEIR TRAINING ABILITY, UM, AND EVEN BRING IN OTHER CITIES TO PROVIDE TRAINING ABILITY. UM, USING THIS EQUIPMENT, IT, UH, SAVES WATER BY SHOOTING WATER BACK INTO A CENTRALIZED PUMP, UH, BOX, BASICALLY, AND THEN KEEPS THAT, UH, ROTATION OF WATER, UH, IN A CLOSED LOOP SYSTEM SO THAT THE WATER IS CONSISTENTLY SAFE. THEN ANOTHER PROGRAM IS OUR UTILITY LEAK DETECTION PROGRAM. METROPOLITAN PROVIDES US FUNDING THAT WE CAN GO OUT AND HIRE A CONTRACTOR, LEAK DETECTION ON OUR UTILITY SIDE, UH, COLLATERAL. AND THEN I GUESS THE LAST COUPLE THINGS HERE IS FOR OUR RESIDENTIAL REBATES AND COMMERCIAL REBATES WEBSITE METROPOLITAN, UH, PROVIDES THE CONTRACTOR THAT PEOPLE CAN APPLY ONLINE FOR AND MANAGES ALL OF THAT PROCESS WHERE SOMEONE CAN APPLY AND SUBMIT PHOTOS FOR WHAT DEVICES THEY'RE, UH, IMPLEMENTING. AND THEN ALSO A METROPOLITAN CONTRACTOR, UH, SENDS OUT THE CHECK. SO KEEPING THAT ALL IN THEIR HOUSE, WE'RE ABLE TO PROVIDE ADDITIONAL FUNDING AS NECESSARY IF WE CHOOSE TO DO SO. BUT THEY CAN FULLY RUN THAT, THAT PROCESS IN THEIR HOUSE. AND ALL WE NEED TO DO IS SIGN ON TO THIS MASTER. VERY CONVENIENT FOR SO BY THE NUMBERS. UM, ON THE LEFT SIDE HERE, WE HAVE OUR TOTAL PAID TURF APPLICATIONS. UM, YOU CAN SEE THE BACK HERE FROM 2010 ALL THE WAY THROUGH 2025. UM, WE SEE A, A LARGER SPIKE [00:25:01] HERE, UM, MOST LIKELY BECAUSE OF THE AMOUNT OF MARKETING THAT WAS HAPPENING DURING THE DROUGHT BETWEEN 2014 AND ROUGHLY 2016. UM, SAME THING HAPPENS ON THIS SIDE FOR THE PAID DEVICE REBATE SIDE. UM, SO MUCH MARKETING WAS HAPPENING WITH THE STATE OF CALIFORNIA AND SO MUCH PROVIDED THAT THAT WAS A GREAT PUSH FOR THE COMMUNITY TO APPLY FOR TURF AND DEVICE REBATES. UM, WE SEE A LITTLE BIT OF, UH, THINGS, UH, LEVELING OFF AND TAPERING OUT OVER THE YEARS. AND AS I MENTIONED, BECAUSE WE'RE PROVIDING SO MUCH, UH, MATERIAL AND DEVICES IN OUR DIRECT INSTALL PROGRAMS NOW, WE MAY SEE SOME OF THESE DEVICE REBATES START CREEPING DOWN A LITTLE BIT, BUT AS FOR TURF APPLICATIONS, WE'RE STILL TAKING ADVANTAGE OF TRYING TO MARKET SOME MORE COMMUNITY AND MORE COMMERCIAL OUTREACH. HOPEFULLY WE SEE THOSE INCREASE, BUT AS FOR A TOTAL, WE'RE LOOKING AT, UH, 4.2 MILLION SQUARE FEET OF TURF HAVE BEEN REMOVED SINCE 2000, UH, 10. AND WE'VE REMOVED OVER, OR EXCUSE ME, WE'VE INSTALLED OVER 14,000 DEVICES, UH, FOR THE RESIDENTIAL CII AND, UH, DEVICE REBATE. I THINK IT'S BEEN PRETTY SUCCESSFUL. SO WITH THAT, UM, I'D LIKE TO PROVIDE A RECOMMENDATION TO AUTHORIZE THE GENERAL MANAGER TO EXECUTE AMENDMENTS TO THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA WATER CONSERVATION MASTER AGREEMENTS TO CONTINUE PARTNERSHIP, FUNDING AND ADMINISTRATION OF THE REGIONAL, COMMERCIAL, INDUSTRIAL AND INSTITUTIONAL CONSERVATION PROGRAMS AND THE REGIONAL RESIDENTIAL CONSERVATION PROGRAMS THROUGH 2035. IS THERE ANY QUESTIONS? THAT WAS GREAT, JOSEPH. THANK YOU. ANY PUBLIC COMMENT? COMMISSIONER COMMENT? COMMISSIONER CORDERO A QUICK ONE. THANK YOU, JOEY. UM, UM, I KNOW DEAN AND I, WE HAD SPOKEN ABOUT MEDIAN, UH, IN TERMS OF MAYBE WORKING WITH PUBLIC WORKS OR PARKS AND REC. UM, IS THERE ANY OPPORTUNITY THAT WHERE, WHERE WE HAVE THAT MAYBE WE CAN HELP OR HOW, HOW CAN WE BETTER UNDERSTAND HOW WE CAN GET THEM TO PLAY INTO THIS? YEAH, SO WE ACTUALLY HAVE, UH, ONE LARGE OPPORTUNITY FROM THE TURF SIDE IS BECAUSE OF, UH, NEW STATE REQUIREMENTS THAT REGARDING NON-FUNCTIONAL TURF ARE COMING DOWN THE PIPELINE. THAT'S A, A GREAT ADVANTAGE THAT, UM, PUBLIC, UH, ENTITIES CAN TAKE ADVANTAGE OF, NOT ONLY BECAUSE THAT'S GOING TO BE REQUIREMENT IN THE COMING YEARS, UM, BUT ALSO BECAUSE OF THE FUNDING THAT METROPOLITAN HAS IS, UH, GETTING HIGHER. UM, RIGHT NOW, LAST TWO YEARS AGO, EXCUSE ME, COMMERCIAL, UM, REBATES WERE AT ABOUT $3 PER SQUARE FOOT. PUBLIC AGENCIES WERE ABOUT $4 PER SQUARE FOOT. IT'S GONE UP, UH, ANOTHER DOLLAR SINCE THAT TIME. SO FUNDING IS INCREASING AND METROPOLITAN KNOWS THAT THEY HAVE THE OPPORTUNITY TO APPLY FOR MORE GRANT FUNDS AND THEY'RE LOOKING TO APPLY FOR MORE GRANT FUNDS BECAUSE OF THE STATE REQUIREMENTS THAT ARE SO FROM A FUNDING INCENTIVE AND THE OPPORTUNITY TO HAVE THAT, UH, ESSENTIALLY EXPENSIVE LABOR CHARGES, UM, TO THEM, UH, THOSE PUBLIC AGENCIES, THEY SHOULD APPLY NOW IT ON THE LIST BASICALLY TO ACCEPT THAT. AND I, I GUESS I'LL JUST ADD, BASED ON THE CONVERSATION WE HAD A LITTLE WHILE AGO, UM, UH, OUR TEAM HAS BEEN HARD AT WORK HAVING CONVERSATIONS WITH DIFFERENT ENTITIES WITHIN THE CITY. UH, AND PART OF WHAT, UH, ACTUALLY JUST THIS WEEK WE'D SPOKEN TO ANGELA ABOUT IS WE'RE WORKING WITH WATER NOW ALLIANCE. UH, ESSENTIALLY THEY'RE HELPING US TO DEVELOP THIS PROGRAM FOR NON-FUNCTIONAL TURF REMOVAL. AND, UH, THE TEAM HAS ALREADY DONE SOME WORK. UH, WE HAVE SOME, IF YOU WANNA CALL 'EM PILOTS GOING WITH MARINE BUREAU, UH, DOWN BY THE MARINE STADIUM AREA WHERE WE'RE CONVERTING, UH, LARGE SWATHS OF, OF TURF. AND HOPEFULLY, YOU KNOW, THAT'S A PARTNERSHIP WITH SURF RIDER WHERE PART OF THE, THE MOST EXPENSIVE PARTS OF THESE PROJECTS IS THE LABOR SURF RIDER. THROUGH OUR PARTNERSHIP WITH THEM, UM, THEY'RE PROVIDING VOLUNTEER. UM, IT'S, IT'S EDUCATIONAL FOR THE COMMUNITY TO LEARN HOW TO DO THESE SURF REMOVALS. UM, , WE'VE HAD PARTICIPANTS AT THOSE WORKDAY EVENTS WHERE AFTER PARTICIPATING, THEY APPLIED FOR THE LAWN GARDEN PROGRAM FOR THEIR OWN HOMES. SO IT'S MULTI-BENEFIT WHERE WE'RE TRYING TO FIND A WAY TO ASSIST WITH THE LABOR COSTS AND THAT MIGHT HELP TO GET THE CITY ABLE TO, UH, MORE URGENTLY OR QUICKLY TAKE THIS ON BECAUSE, UH, BUDGET IS, IS BIG. GREAT. THANK YOU FOR THAT. AND YOU KNOW, PLEASE PUT US TO WORK. 'CAUSE THIS ISN'T JUST ABOUT US SITTING HERE AND TELLING YOU THIS IS WHAT WE WANT YOU TO DO. UM, YOU KNOW, IF WE CAN HELP IN ANY WAY, I AM SURE YOU KNOW, THAT WE'VE ALL GOT CONTACTS OUT THERE WITH ORGANIZATIONS AND, AND PEOPLE THAT WOULD BE OF INTEREST. SO I WOULD SAY THERE IS A ONE WAY TO HELP. WE'VE APPLIED FOR, UH, A CALIFORNIA AIR RES CONTROL BOARD FUNDING, UM, FOR AB UH, 32 THAT INVOLVES, UH, CII, COMMERCIAL INDUSTRIAL INSTITUTIONAL CUSTOMERS FOR DIRECT INSTALL, UH, IN INDOOR DEVICES FOR THEM. SO HAVING THAT APPROVAL WOULD BE HELPFUL TO MOVE THAT ALONG AS WELL. THAT WOULD, UM, MOST LIKELY GO THROUGH OCTOBER IF, IF ALL OF OUR REQUESTS HAVE BEEN MET FOR THE CITY. IS IT, DID YOU [00:30:01] SAY CARB? IS THAT WHAT IT IS? YES. OKAY. AB 32 FUNDING TO RUN THE AB 32. GREAT, THANK YOU. AND THEN THE OTHER THING IS, UM, IN TERMS OF, I ALWAYS THOUGHT IT'D BE, I THINK WE TALKED ABOUT THIS ONCE, I THINK NOW IT'S A LITTLE HARDER TO, TO GET TOGETHER, BUT MAYBE HAVING ONE, ONE STREET, YOU KNOW, GO GET TOGETHER AND SAY, WE'RE GONNA DO THE FRONT, WHAT DO YOU CALL THE FRONT WHERE IT'S NOT THE SIDEWALK, BUT IT'S THE PARKWAY. PARKWAY. IF, IF EACH NEIGHBOR GOT TOGETHER AND SAID, WE'LL DO YOU KNOW, FIVE HOUSES OR SIX HOUSES, UM, YOU KNOW, IT MIGHT BE KIND OF NEAT TO WORK WITH SOME OF THE, OR OR COUNCIL MEMBERS AND SAY, YOU KNOW, OFFER THIS IF WE GOT, AND UNFORTUNATELY IF WE GOT TOO MANY, WE MIGHT NOT BE ABLE TO DO IT, BUT IF WE COULD DO IT, IT COULD BE A SHOWCASE. SO ABSOLUTELY. JUST, JUST A THOUGHT. THAT'S A GREAT THOUGHT. AND WE'VE ACTUALLY MADE THAT PROGRAM A LITTLE BIT EASIER AS OF, UH, LAST WEEK. SO IT'S, IT'S FULLY DELIVERED TO THE, TO THE PROGRAM, TO THE CUSTOMERS NOW. SO ON THE LABOR SIDE FOR THEM IS, UH, REALLY JUST REMOVING THE TURF AND INSTALLING THE PLANTS. SO WE'RE, WE'RE ABLE TO WORK WITH OUR CONTRACTORS TO GET EVERYTHING TO THEM. SO AS A MEANS OF COMMUNITY ENGAGEMENT AND, AND COMMUNITY, UM, BENEFITS IF THEY CAN HAVE LIKE A NEIGHBORHOOD BLOCK PARTY TYPE SITUATION. I THINK, AND I, AND I BELIEVE WE USED TO DO TOURS AND WE DO A TOUR WHERE WE WOULD TAKE PEOPLE OUT TO SEE DIFFERENT HOMES. HAVE WE DONE THAT RECENTLY OR WE HAVE NOT DONE THAT RECENTLY, BUT WE HAD DONE THE LONG TO GARDEN TOUR BACK IN AND THE KIND OF SOME OF THE PEAK ACTIVITY FOR THAT PROGRAM, KIND OF, KIND OF IN THE SAME, UH, BOAT, THE, IN OCTOBER, WE ARE PLANNING TO DO A SIMILAR TYPE OF, UH, NOT TOUR, BUT MORE OF LIKE A SHOWCASE FOR THE, FOR THE NATIVE PLANT MARKET. HOPEFULLY WE CAN TALK WITH YOU AND WE CAN GET IN LINE WITH WHAT, WHAT WOULD SERVE THE BEST. WE'RE LOOKING TO DO THAT. GREAT. THANK YOU FOR THAT. THANK YOU. WE REALLY LOVE THIS PROGRAM AND IT'S GREAT SEEING THE EFFECT ON THE COMMUNITY. EVERYWHERE WE GO, WHATEVER NEIGHBORHOOD WE'RE IN, WE'RE SEEING WHAT YOU'RE DOING. WE'RE REALLY GRATEFUL FOR THE PARTNERSHIP WITH MATT. UM, AND THIS EXPANDING OPPORTUNITY, I GUESS, YOU KNOW, AS WE GO FORWARD TO RENEW THIS CONTRACT. UM, ANY OTHER COMMISSIONER COMMENT? UM, DO I HAVE A MOTION TO APPROVE? MOTION AND A SECOND. THANK YOU. ALL IN FAVOR? AYE. ANY OPPOSED? NO. MOTION CARRIES. THANK YOU JOE, JOEY. OKAY, ITEM NUMBER SIX, [6. 25-55165 Recommendation to adopt Specifications UD-25-241 and award a contract to Thermo Electron North America LLC, a Delaware limited liability company, for the furnishing, delivery, and installation of one (1) Ion Chromatography (IC) system with autosampler, in a total amount not to exceed $139,520.05, and authorize the General Manager to execute all documents necessary to enter into the contract, including any necessary subsequent amendments.       Suggested Action: Approve recommendation. ] TO ADOPT SPECIFICATIONS UD DASH 25 2 4 AND AWARD A CONTRACT TO THERMO ELECTRON NORTH AMERICA LLC FOR THE FURNISHING DELIVERY AND INSTALLATION OF ONE ION CHROMATOGRAPHY SYSTEM WITH AUTO SAMPLER. AND KEVIN WONG WILL HELP US WITH THIS. THANK YOU. THANK YOU FOR THE INTRO INTRODUCTION. COMMISSIONER. UM, MY PRESENTATION IS AN I AM ICONOGRAPHY SYSTEM, U DASH 25 DASH 24 1. NEXT SLIDE PLEASE. UH, PREVIOUSLY I HAD GAVE A DISCUSSION ALSO FOR PREVIOUS PRESENTATION, BUT, UH, AGAIN, UM, LONG BEACH WATER QUALITY LAB MONITOR, UM, DISTRIBUTION WATER THROUGHOUT LONG BEACH. WE MONITOR GROUNDWATER SOURCE AND RESERVOIR TANK FOR CONTAMINANT. UH, ANNUALLY, UH, WE HAVE A 60 TO 70. WE PERFORM 60 TO 70,000 TESTS TO MONITOR. MONITOR FOR BIOLOGICAL LIKE COLIFORM, E COLI, BACTERIA COUNT, MONITOR FOR THE PHYSICAL CHARACTER CHARACTERISTIC OF WATER, LIKE COLOR PARTNERS TO BE THE, UM, CHEMICAL IN ORGANIC AND ORGANIC CONTAMINANT IN WATER. THAT'S ARE CHEST, METAL, FACE AND IRON, UM, CHEST ORGANIC, UM, DISINFECTANT BYPRODUCT. YOU ALSO MONITOR FOR RADIOACTIVE IN SOURCE WATER. NEXT SLIDE PLEASE. SO WHAT IS ION CRYPTOGRAPHY? UH, IT IS A ACRONYM, ACRONYM AS IC SYSTEM. IT IS AN INSTRUMENT THAT CAN ANALYZE MULTIPLE ION RAPIDLY. SO WHAT IS ION? ION IS IRON. IRON IS LIKE A CHARGED PARTICLE. FOR EXAMPLE, WE HAVE TABLE SALT, WHICH HAS A COMBINATION OF SODIUM IS A POSITIVE IRON AND CHLOR CHLORIDE AS A NEGATIVE IRON. UM, THIS INSTRUMENT HAVE IS A DUAL COLUMN AND THEY CAN DETECT IRON OR DISINFECTANT BYPRODUCT. IT DETECT A VERY LOW LEVEL OF DISINFECTANT BYPRODUCT DOWN TO BILLION PART, UM, BILLION PART, UM, BILLION PART IS LIKE, UM, ONE SECOND IN 32 YEARS. SO IT'S, UM, JUST LEVEL AND THE PRINCIPLE OF SEPARATION IS BASED ON CHARGE AND POLARITY OF THE MOLECULE. NEXT SLIDE PLEASE. CURRENTLY, OUR AN IRON, UH, IRON GRAPHY SYSTEM WAS PURCHASED IN [00:35:01] 2006, IS MAINLY USED TO MONITOR NEGATIVE CHARGE IRON DISINFECTED BYPRODUCT LIKE NITRATE, POST FAT CHLORIDE AND PROBATE. UM, IT'S VERY OLD, UM, INSTRUMENTATION. SO PART AND SUPPORT ARE NO LONGER AVAILABLE DUE TO THE AGE. NEXT SLIDE PLEASE. SO IN MARCH 14, WE UH, POST BID ON PRESS TELEGRAM LO BY BID WAS DUE ON MARCH 28TH AND HAVE TO BID RECEIVED FROM MY ELECTRON. NORTH AMERICA LLC WAS LOWEST BIDDER WITH A TOTAL BID PRICE OF $139,520 AND 5 CENTS. SO OUR RECOMMENDATION IS TO ADOPT SPECIFICATION DUTY DASH 25 DASH 2 4 1 IN OUR CONTRACT TO THERMO ELECTRON NORTH AMERICA, LLC DELAWARE LIMITED LIABILITY COMPANY OF THE FURNISHING DELIVERY IN INSTALLATION OF IRON CRYPTOGRAPHY SYSTEM WITH AN ORDER SAMPLER IN A TOTAL AMOUNT NOT TO EXCEED 139,000 $120 IN 5 CENTS AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE OR DOCUMENT NECESSARY ENTER THE CONTRACT INCLUDING ANY UNNECESSARY SUBSEQUENT AMENDMENT AND MY PRESENTATION. DO YOU HAVE ANY QUESTION? THANKS KEVIN. BOY, IT SOUNDS LIKE A CRITICAL CRITICAL SYSTEM FOR A CRITICAL NEED. THANK YOU. ANY PUBLIC COMMENT? UM, IT IS, UM, OUR LAB HAVE A REPLACEMENT PLAN, SO THIS IS PART ABOUT REPLACEMENT PLAN PLAN THIS YEAR. OKAY. ANY PUBLIC COMMENT? COMMISSIONER COMMENT? I JUST HAVE A QUICK QUESTION. UH, THEY MET IN THIS COUNTRY, YES, BUT IT TAKE THEM A LONG TIME TO, I MEAN LIKE MAYBE AROUND FIVE TO SIX WEEK TO, UH, BUILD IT CUSTOMIZED FOR US. OKAY, THANK YOU. GOOD REPORT. THANK YOU. I HAVE A RIDICULOUS QUESTION. THANK UM, AND IT'S OFF THE SUBJECT, BUT IT'S RELATED TO THIS SUBJECT. SO THE WATER SAMPLING STATIONS THAT WE HAVE THROUGHOUT THE CITY, UH, ARE THOSE, WHEN YOU SEE 'EM IN A NEIGHBORHOOD, ARE THEY THE LITTLE CAGES, LIKE TWO FEET BY THREE FEET BY TWO FEET CAGED IN? NO. NO, THEY'RE NOT. THEY'RE NOT. THEY ARE THE, WE NOW REPLACE ALL OUR SAMPLING. TAP WITH A GREEN, LIKE ABOUT FOUR TO FIVE FEET LONG HOLE. OKAY. IN THOSE TWO, RIGHT? AND WITH A LOCKBOX. OKAY. WHAT, WHAT ARE THE OTHER THINGS? THE LITTLE CAGES. HE WAS RIDICULOUS. SO KEV, KEVIN IS OUT THERE WALKING THE STREET. WE KNOW THIS, SO WATCH OUT BECAUSE HE'S CHECKING . AND MAYBE WE NEED TO, TO ALL WALK THE STREET WITH YOU ONE OF THESE, JASON, BECAUSE I DON'T KNOW WHAT ALL THAT STUFF IS, FOR SURE. OKAY. UM, ANY OTHER COMMISSIONER? COMMENT? MOTION TO APPROVE. SECOND. THANK YOU. MOTION AND SECOND. RECEIVED. ALL IN FAVOR, SAY AYE. ANY OPPOSED? NO, THANKS KEVIN. VERY GOOD. OKAY, [7. 25-55169 Receive and file an overview of Fiscal Year 2026 Gas, Water, Sewer Fund Proposed Budgets, Projections, and Reserves.       Suggested Action: Approve recommendation. ] ITEM NUMBER SEVEN IS TO RECEIVE AND FILE AN OVERVIEW OF FISCAL YEAR 2026, GAS, WATER, SEWER FUND, PROPOSED BUDGETS, PROJECTIONS, AND RESERVES. AND I CALL ON ANNA GAN. THANK YOU PRESIDENT MCGUIRE. I JUST WANTED TO MAKE SOME BRIEF COMMENTS BEFORE WE START. WE'RE GONNA GIVE YOU AN OVERVIEW NOW IN, IN QUITE SOME DETAIL ON THE BUDGET AS IT REGARDS TO THREE FUNDS AT THIS LEVEL OF DISCUSSION WITH YOU. UH, AND GIVEN SOME OF THE INFORMATION THAT WE PRESENTED IN THE COMMITTEE, YOU'RE GOING TO SEE SOME OF THAT NOW REPEATED HERE, UH, FOR THE BENEFIT OF THE FULL BOARD. ALSO IN THAT CONTEXT, UH, AS WE DISCUSSED IN THE COMMITTEE IN THE CONTEXT OF A PREVIEW, IT'S NOW TO BEGIN TO EXPLORE WITH YOU THE THINGS THAT ARE WITHIN OUR CONTROL. UM, STEPHANIE'S GONNA SHARE WITH YOU KIND OF A PERSPECTIVE ON WHETHER IT'S COSTS AND EFFICIENCIES AND OTHER CONTROLS AND KIND OF WORK OUR WAY TOWARDS A REVENUE GAP. AND IN THAT REVENUE GAP THEN REPRESENTS THE OPPORTUNITY FOR US TO RETURN TO YOU ON THE 15TH WITH SOME SCENARIOS ON WHAT TO DO ABOUT THAT REVENUE GAP AND PERHAPS A LITTLE MORE EXPLORATION ON SOME OF THE OTHER COST CONTROL MEASURES THAT WE CAN TRY TO PUT IN PLACE. SO FIRST STEP, UH, IT IS A BIG FIRST STEP AS A CONSOLIDATED UTILITY. WE'RE GONNA GO THROUGH A LOT OF INFORMATION ACROSS ALL THREE FUNDS, AND I'M GONNA TURN IT OVER TO STEPHANIE. SHE'S GOT IT HERE. GOOD MORNING COMMISSIONERS. WELCOME TO BUDGET WORKSHOP ONE. [00:40:02] UH, OKAY, RECESS IS IN ORDER. SEE YOU. UM, FIVE MINUTES, 10. OKAY, I, YAY. HEY, LET'S TAKE OUR SEATS. I THINK WE'RE UP. IT'S HARD TO BREAK YOU GUYS UP ONCE YOU START TALKING. . OKAY. [00:45:02] THE MEETING IS REA ADJOURNED. NOT ADJOURNED. RECONVENED, PARDON ME, . WE WILL WAIT FOR COMMISSIONER CORDERO FOR A SECOND. STEPHANIE, I UNDERSTAND. CONGRATULATIONS ARE IN ORDER TOO. AM I SPEAKING OUT OF TURN? ? THANK YOU SO MUCH. . A GREAT OPPORTUNITY. SHOULD BE HERE IN A MINUTE. LET'S, LET'S GO AHEAD AND START. OKAY, WELCOME BACK TO BUDGET WORKSHOP ONE. WE DON'T HAVE A QUORUM, I'M SORRY. NEVERMIND. YOU HAD A QUORUM OF THE QUORUM . UM, PLEASE PROCEED. WELL WELCOME AGAIN TO BUDGET WORKSHOP ONE WHERE WE WILL BE PRESENTING THE FY 26 GAS, WATER, AND SEWER FUND, PROPOSED BUDGETS, PROJECTIONS, AND RESERVES. THIS IS OUR CALENDAR OF OUR SERIES OF BUDGET WORKSHOPS. IN THE NEXT ONE, WE WILL BRING TO YOU RATES AND IN THE FINAL ONE WE'LL CONTINUE THE DISCUSSION AND YOU'LL ADOPT OUR BUDGET AND RATES FOR FY 26. SO I'M GONNA GET STARTED WITH PROVIDING TO YOU THE BUDGETARY HIGHLIGHTS AND FINANCIAL HEADWINDS, AND I'LL ALSO DISCUSS THE GAS FUND AND THEN I'LL LATER ON HAND IT OVER TO OUR MANAGER OF BUDGETING RATES, DANIEL GUTIERREZ, WHO WILL TALK ABOUT WATER AND SEWER, UH, FUNDS. BUT I ALSO WANTED TO, UM, LET YOU GUYS KNOW THAT THIS IS MORE OF A DIALOGUE. SO IF YOU HAVE ANY QUESTIONS THROUGHOUT, PLEASE FEEL FREE TO TO ASK AS WE GO ALONG. THERE IS A LOT, IT'S PRETTY DENSE INFORMATION, SO, UM, IF YOU HAVE QUESTIONS, FEEL FREE TO TO STOP ME. UM, SO OUR BUDGETARY HIGHLIGHTS THAT WE WE FACE ARE COMPETITIVE WAGE INCREASES TO STRENGTHEN RECRUITMENT AND RETENTION. THIS IS ABSOLUTELY NECESSARY, UH, BECAUSE WE'RE IN A VERY COMPETITIVE JOB MARKET, UH, ESPECIALLY BECAUSE OUR, THE INDUSTRIES THAT WE PERFORM IN ARE COMPETITIVE IN THE PRIVATE SECTOR AS WELL. WE ALSO, UH, PROVIDE A BENEFIT TO THE CUSTOMERS OF CONTINUED INVESTMENT IN CRITICAL INFRASTRUCTURE TO ENSURE SAFE, RELIABLE, AND COST COMPETITIVE DELIVERY OF WATER, NATURAL GAS AND SEWER SERVICES, STRATEGIC INITIATIVES TO COUNTER AND MITIGATE, MITIGATE INFLATIONARY PRESSURES AND EFFECTS OF CLIMATE CHANGE. I'D ALSO LIKE TO EXPRESS THAT WE'VE APPROACHED THIS PLANNING PROCESS AND THE BUDGET WITH GROUNDED IN A STRATEGIC APPROACH. AND YOU, YOU'VE SEEN THAT IN OUR BOARD RETREAT AND WE'RE COMMITTED TO ENSURING THAT YOU PROVIDE THE BEST RESULTS THROUGHOUT THE, THE PROCESS. TO FURTHER HIGHLIGHT THE HEAD HEADWINDS, WE HAVE, UH, CONTINUED LABOR COST INCREASES, INFLATION, AND SPECIFICALLY THE ENGINEERING NEWS RECORD INDEX INCREASED 6.5% ON AVERAGE OVER THE LAST FOUR YEARS. CONSERVATION AND DEMAND REDUCTION, WHICH YOU HEARD FROM JOEY EARLIER, IS SOMETHING THAT WE IS A REALITY OF, OF OUR, OUR MARKET METROPOLITAN AND SOCAL GAS, UH, INCREASES AND COST OF CLIMATE CHANGE ADAPTATION, RIGHT? LET'S GET INTO GAS. OOPS. ALRIGHT, THIS IS A SUMMARY OF THE GAS FUND. YOU SEE FY 25 BUDGET, FY 25 ESTIMATES TO CLOSE OR ET CS. UH, THOSE ARE OUR FORECAST FOR THE END OF THE FISCAL YEAR. FY 26 BUDGET. THAT NUMBER, UH, [00:50:01] THOSE NUMBERS REFLECT THE BUDGETS THAT WE WERE RECEIVED FROM OUR STAFF. AND THE FINAL COLUMN IS, PLEASE JUST TAKE THAT WITH A GRAIN OF SALT. THAT 5% REPRESENTS WHAT WE SHOWED IN LAST YEAR'S FIVE YEAR PROJECTIONS FOR FY 26. SO IT'S ONLY THERE FOR ILLUSTRATIVE PURPOSES. WHAT YOU'LL SEE HERE IS THAT WE BUDGETED AT A DEFICIT, UH, FOR THIS FISCAL YEAR. WE, WE KNEW THAT AND THAT WE WERE GOING TO LEVERAGE OUR, OUR RESERVES. UM, AND THE REASON FOR THAT WAS TO ENSURE CONTINUED AFFORDABILITY WITHOUT COMPROMISING SIGNIFICANT RATE INCREASES FOR THE, THE RATE PAYERS. HOWEVER, WHAT WE'RE WE'RE SEEING AS A GROWING TREND ARE, UM, WARMER WINTERS. AND THE WEATHER IS VERY UNPREDICTABLE AT TIMES, EVEN THOUGH WE ARE, WE LIVE IN SOUTHERN CALIFORNIA, SUNNY SOUTHERN CALIFORNIA. UM, WE, WE DON'T ALWAYS KNOW WHAT IT'S GOING TO BE. SO WARMER WINTERS ALSO EQUATE TO LESS REVENUE. WE, WE SEE A HUGE SWING, UM, IN, IN AN UNREALIZED REVENUE THAT WE HAD ORIGINALLY BUDGETED FOR, AND WE RIGHTSIZE THAT FOR FY 26. ANY QUESTIONS ON THIS SLIDE? WE'LL DIVE IN DEEPER FOR EACH CATEGORY. HERE WE HAVE THE, THE LINE ITEM CATEGORIES FOR GAS EXPENDITURES. AND THE FIRST ONE ARE GAS COMMODITY COSTS. COMMODITY COSTS REPRESENT THE PASS THROUGH IN WHICH WE, WE PURCHASED AND PROCURE THE GAS. UM, YOU'LL SEE ON THE FOLLOWING SLIDE THAT WE SELL THE GAS AND THERE IS NO MARKUP. WE DON'T MAKE A PROFIT FROM THAT. UM, BUT WHAT WE'RE ALSO SEEING HERE IS THAT WE'RE PURCHASING LESS BECAUSE DEMAND IS LOWER. UH, THE GAS TRANSMISSION REPRESENTS THE SOCAL GAS TRANSMISSION THAT WE PAY TO SOCAL GAS PERSONAL SERVICES. YOU'LL SEE HERE THAT AGAIN, WE ARE BUDGETING FROM, FROM FY 25 TO FY 26 BUDGET. WE HAVE A SLIGHT UPTICK, BUT IN THIS FISCAL YEAR, WE HAVE A FEW VACANCIES THAT WE'RE, ARE REALIZED AND WE STILL FACTOR IN VACANCY SAVINGS NEXT YEAR AS WELL FOR O AND M. THE AMOUNT, UH, INCREASE HERE, UH, REPRESENTS, UH, SOME CONSERVATION PROJECTS, WHICH WILL BE OFFSET IN REVENUE ON THE OTHER SIDE. SO EVEN THOUGH YOU MAY SEE THIS, UH, $4 MILLION INCREASE, IT'S NOT A TRUE INCREASE BECAUSE WE'LL, WE'LL RECOUP THOSE FUNDS. CIP AND COMPLIANCE ARE, UM, THE INFRASTRUCTURE, THE INTEGRITY OF OUR PIPELINE. AND, UH, WE HAVE A CURRENT PROJECT ON MORELO AND PACIFIC THAT HAS GONE OVER AND WE ALSO ARE TRYING TO INCREASE OUR METER REPLACEMENTS. SO YOU SEE A SLIGHT UPTICK THERE. THE CIP BILLABLE LINE REPRESENTS PROJECTS IN WHICH WE DO THE WORK, WE PERFORM THE WORK AND WE HAVE TO PAY CONTRACTORS OR IN-HOUSE STAFF. UM, BUT WE RECOUP THOSE COSTS. SO IT'S A PARTNERSHIP. THE THE LARGEST IMPACT IS FOR A PARTNERSHIP WITH THE PORT. SO IT'S A BENEFIT TO US BECAUSE WE ESSENTIALLY ARE, UM, BENEFITING FROM A NEED THAT THE PORT CURRENTLY HAS. AND IT'S A PROJECT THAT WE WOULD'VE ESSENTIALLY DONE LATER ON DOWN THE LINE. AND THE GENERAL FUND TRANSFER, WHICH I DON'T THINK NEEDS ANY FURTHER EXPLANATION, UH, MOUS ARE, UM, MOUS IN WHICH, UH, OTHER, UH, PARTNER DEPARTMENTS THROUGHOUT THE CITY PROVIDE SERVICES TO US, LIKE TID AND AB 32. JOE, WE KIND OF TOUCHED ON THAT EARLIER AS WELL. THOSE ARE FOR GREENHOUSE GAS EMISSION PROJECTS. UM, AND THAT CONCLUDES THIS SLIDE. SO DO YOU HAVE ANY QUESTIONS? GREAT. FOR THE REVENUE SIDE, WHAT WE SEE ARE THE, THE DIPS, AS I MENTIONED, UH, FOR GAS TRANSMISSION REVENUE AND GAS COMMODITY. THE GAS COMMODITY IS A PASS THROUGH, BUT THE TRANSMISSION IS WHERE WE FUND, UM, PRIMARILY ALL OF OUR O AND M LABOR AND OVERHEAD. SO YOU CAN TELL THAT WITH BOTH OF THEM COMBINED, BECAUSE THESE ARE BASED ON VOLUMETRIC RATES THAT DEMAND HAS, HAS GONE DOWN. AND WE DEPEND ON, ON THE TRANSMISSION REVENUE TO OFFSET FIXED COST. AND IN THIS INFLATIONARY MARKET, UM, THE TWO ARE JUST COMPETING WITH EACH OTHER. GAS SERVICE FEES ARE FEES THAT ARE, UM, UH, NOT ALWAYS PREDICTABLE, BUT IT DEPENDS ON WHAT NEEDS, UM, AND REQUESTS ARE FROM RATE PAYERS AND THE PREPAY IS LUMPED IN THERE. UM, THE PREPAY REPRESENTS A PREPAID DEAL THAT WAS DONE IN 2007, 2008. IT'S A 30 YEAR DEAL IN WHICH WE PROCURED GAS, UM, AT A DISCOUNT. UH, BUT THE, THE RATE PAYERS PAY THE FULL AMOUNT, SO THAT DISCOUNT AMOUNT ACTUALLY FUNDS THE CIP. SO IT STILL BENEFITS THAT THE RATE PAYER [00:55:01] AB 32, AND THESE ARE THE REVENUE THAT, THAT WE COLLECT AND ALSO, UM, SELL, UM, FREE ALLOWANCES. AND THOSE ARE WHAT FUND THOSE, THOSE PROJECTS. SO ONE OF THE PROJECTS THAT, UH, JOEY TOUCHED ON WAS, UM, THE DIRECT INSTALL PROGRAM, CIP BILLABLE REVENUE. AGAIN, THAT IS MONEY THAT COMES IN TO OFFSET THE EXPENSES, UM, FOR THE PORT AND ANY OTHER PROJECT REQUESTS WE GET. AND MOUS ARE THE SERVICES THAT WE PROVIDE TO OTHER DEPARTMENTS. UM, FOR EXAMPLE, WE PROVIDE, UH, SUPPORT TO REFUSE IN OUR CALL CENTER. AND, UH, I CURRENTLY SUPPORT MY TEAM AND I CURRENTLY SUPPORT ENERGY RESOURCES FOR FINANCE AS WELL AND MISCELLANEOUS REVENUE. JUST A FEW RANDOM THINGS IN THERE, UH, BUT THAT IS WHERE THE OFFSET IS FOR THE INCREASE IN O AND M. ANY QUESTIONS? OKAY. SO THIS IS THE FIRST TIME YOU'RE SEEING A SLIDE LIKE THIS. WE HAD TO GET A BIT CREATIVE AS YOU WERE SEEING THE, THE, THE DECLINE IN, UM, AS A**L MENTIONED, THE REVENUE GAP THAT WE'RE TRYING TO TO MITIGATE THE FIRST COLUMN ARE THE ATCS. AND, UH, THAT WAS REPRESENTED IN AN EARLIER SLIDE IN THE EARLIER SLIDES OR THE TOTALS. AND WE HAVE A $17.6 MILLION DEFICIT. SO OUR OBJECTIVE IS TO BALANCE OUR BUDGET. IN THE PAST, WE'VE, GAS HAS PRIMARILY BEEN CASH FUNDED AND HAS BENEFITED FROM THE PREPAID DEAL ALTOGETHER IN INFLATIONARY TIMES WHERE EVERYTHING, ALL THE COSTS ARE FIXED, FIXED COSTS ARE INCREASING, UM, AND REVENUE IS SLOWING. WE NEED TO FIGURE OUT, WE NEED TO BE A LITTLE MORE CREATIVE IN, IN OUR, UM, STRATEGY. SO, UM, WE HAVE THIS, THE SIMPLEST WAY WE COULD PUT IT WAS IN DIFFERENT SCENARIOS. SO A REPRESENTS COST CONTROLS IN WHICH WE TRY TO FIND WAYS TO CUT COSTS. B REPRESENTS DEBT FINANCING, AND JUST FOR YOUR KNOWLEDGE AND AWARENESS, GAS DOES NOT HAVE A, UH, SEASONED EXPERIENCE, UH, IN, IN DEBT FINANCING. IT PRIMARILY HAS BEEN CASH FUNDED. SO I'VE BEEN WORKING WITH OUR TREASURY TEAM AND LEARNING MORE ABOUT THE HISTORY OF THE GAS FUND. AND IT, UM, BECAUSE THERE ISN'T A MASTER IN DENTURE FOR BONDS, THAT IS SOMETHING THAT WE'RE CURRENTLY EXPLORING. AND I KNOW DEBT SOUNDS BAD, AND I MENTIONED THIS IN LAST WEEK'S FINANCE COMMITTEE MEETING, AND WE, WE THINK OF DEBT OR FI OR PERSONAL FINANCES, IT'S BAD, BUT ACTUALLY IT'S, IT'S A BENEFIT FOR ALL OF US AND THE RATE PAYERS BECAUSE WE ARE ABLE TO SMOOTH OUT COSTS. SO IT'S ONE OF OUR TOOLS THAT WE HAVE IN OUR POCKET. AND FINALLY, UM, C REPRESENTS A, UH, AN INCREASE TO BRIDGE THAT GAP, UM, THAT OF REVENUE. SO ONE OF THE, THE BIGGEST OPPORTUNITIES IS, UH, OR OBVIOUS OPPORTUNITIES OR, OR RATE INCREASES. BUT TODAY WE WON'T GET INTO THAT. WE'LL BRING THAT TO, TO NEXT WEEK'S, UH, I'M SORRY, MAY 15TH BUDGET WORKSHOP. SO FOR THE ET CS, WE HAVE THE $17.6 MILLION GAP. AND BY IMPLEMENTING COST CONTROLS IN THIS FISCAL YEAR, WE'RE ABLE TO REDUCE THAT GAP TO $4 MILLION LESS. AND THAT INVOLVES, UH, MAINTAINING TO OUR CIP BUDGET, OUR ORIGINAL BUDGET, AND DEFERRING OTHER PROJECTS THAT ARE IN THE QUEUE. UH, THAT ALSO INCLUDES, UM, WHAT YOU SEE IN THE ATCS, UH, EXPENDITURES IN THE CIP UH, GROUPING IS ALSO, UH, THE $3 MILLION THAT WE WERE COMMITTED FOR TENANT IMPROVEMENTS IN ELM. SO ONE THING I AM CURRENTLY WORKING ON IS TRYING TO FIND A WAY TO DEBT FINANCE COLLECTIVELY WITH THE CITY BECAUSE THEY WERE PLANNING ON UTILIZING, UH, CASH AS WELL. BUT EVERYBODY'S, UH, IN A TOUGH SITUATION RIGHT NOW. SO WE'RE, WE'RE TRYING TO PARTNER WITH THE CITY TO, TO FIND WAYS TO DEBT FINANCE FOR, FOR ELM, AND THAT'S SPLIT IN TWO YEARS. SO WE SEE THAT, UM, GO AWAY IN THE EXPENDITURES. 'CAUSE IF WE'RE ABLE TO, UH, NOT FUND THAT WITH CASH, THEN IT'LL HELP US OUT A LOT. SO THAT REPRESENTS $3 MILLION IN THIS CURRENT FISCAL YEAR AND $3.2 MILLION IN NEXT FISCAL YEAR. SO IN LINE WITH FY 26 A PLUS B, UH, WE INCORPORATE DEBT FINANCING AND IF WE WERE TO MAXIMIZE DEBT FINANCING AT A HUNDRED PERCENT OF OUR CIP, WE'RE ABLE TO BRING DOWN, UM, THAT DEFICIT TO SEVEN, ABOUT $7.9 MILLION. AND LASTLY, BECAUSE IT'S THE LAST THING I WANNA DO IS, UM, REVENUE INCREASES AND IT HELPS US BALANCE OUR BUDGET. AND, UM, THAT AMOUNTS TO SLIGHTLY HIGHER. WE'RE BARELY, IT'S, IT'S A SKINNY MARGIN, BUT [01:00:01] IT'S WHAT WE CAN DO AT THIS TIME, WHAT WE'RE GOING TO TRY TO DO AT THIS TIME. ANY QUESTIONS HERE? YES. WAS THE GOAL IN THE FINAL COLUMN WITH THE 3 83, WAS THE GOAL TO GET TO AS CLOSE TO ZERO AS POSSIBLE? IS THAT BALANCED BUDGET? IS THAT WHAT YOU'RE THAT'S, THAT'S THE, UM, ELEMENT OF BALANCING THE BUDGET WHERE WE ARE NOT QUITE THERE WHERE WE'RE TRYING TO MAKE GAINS, BUT WE, WELL, THE GOAL IS TO TRY TO BREAK EVEN COMMISSIONER SCOTT IN THE, IN THE CURRENT ENVIRONMENT. WHEN WE WERE IN FISCAL YEAR 25 AT THE TIME OF ADOPTION, UH, WE WERE DEALING WITH A VERY, VERY LOW FUND BALANCE. SO THAT LOW FUND BALANCE WAS AN ENDING FUND BALANCE. AND SO, AS STEPHANIE POINTED OUT, THE ACTIONS IN FISCAL YEAR 25 WERE BASED ON A STRUCTURAL DEFICIT IN THE BUDGET, BUT THE FUND BALANCE COULD HANDLE IT. NOW, WE FIND OURSELVES WITH A FUND BALANCE THAT IS AT THAT POINT WHERE THE OVERALL GOAL HAS TO BE TO AVOID ANY FURTHER STRUCTURAL DEFICIT. BUT CONSEQUENTLY, THE TOOLS THAT WERE IDENTIFIED, WE'LL CONTINUE TO LOOK AT THOSE, BUT WE WILL TRY TO MAINTAIN THAT FUND BALANCE, UH, IF AT ALL POSSIBLE IN THE DECISIONS THAT WE MAKE GOING. THANK YOU, A**L. ANY OTHER QUESTIONS? A I'M GONNA PREPARE YOU, IT'S NOT THE PRETTIEST SLIDE. THIS IS OUR PROPOSED FORECAST, UH, FOR OUR FUND BALANCE. SO WE, AS YOU CAN SEE, OUR, OUR RESERVES HAVE BEEN DEPLETING AGAIN BECAUSE WE'VE BEEN FUNDING EVERYTHING FROM CASH AND HAVE TRIED TO DO OUR BEST TO MITIGATE ANY RATE INCREASES IN THE PAST, UM, SUCH AS LAST YEAR AND THE YEAR PRIOR WHEN WE DEALT WITH THE GAS PRICE CRISIS. SO, UM, NOW WE'RE IN A POSITION WHERE IF WE CAN AT LEAST BALANCE OUR BUDGET, THAT BRINGS US TO, UH, $2.6 MILLION AT THE END OF NEXT FISCAL YEAR, WHICH IS A SLIGHT UPTICK FROM WHAT WE'RE ESTIMATING, UH, FOR THE END OF THIS FISCAL YEAR OF 2.2 MILLION BY IMPLEMENTING THOSE COST CONTROLS. WE'RE STILL EXPLORING OTHER OPTIONS AT THIS TIME, BUT WE'LL, WE'LL BRING TO YOU, UM, RATES AND OTHER DISCUSSIONARY POINTS NEXT WEEK, OR KEEP SAYING NEXT WEEK. I, I, I FEEL LIKE I'VE BEEN MEETING WITH YOU EVERY WEEK, BUT THAT'S JUST COMMISSIONER SCOTT . ANY FURTHER QUESTIONS? OKAY, I'LL BE TRANSITIONING, UH, THIS TO DANIEL GUTIERREZ AND I WILL BE BACK AT THE END. GOOD MORNING, COMMISSIONERS. THANK YOU, STEPHANIE. UH, WE'RE GONNA GO AHEAD AND START OFF WITH THE WATER FUND. UH, THIS SLIDE YOU'VE SEEN BEFORE, UH, DURING THE BOARD RETREAT, BUT I BELIEVE IT'S IMPORTANT, UH, AS IT HIGHLIGHTS THE DECREASE IN CONSUMPTION OVERALL. UH, STARTING FROM 1990, UH, SEVEN, UH, WE'RE ROUGHLY AROUND 70,000 ACRE FEET. AND, UH, AS OF RIGHT NOW, WE'RE PROJECTING UP IN THE CURRENT YEAR. UH, AND THIS IS TO HIGHLIGHT THE FACT THAT WE HAVE EXTREMELY HIGH FOOD COSTS WHILE FACING A SHRINKING REVENUE BASE AND CARRYING THAT FORWARD. UH, HERE WE HAVE THE NEXT 10 YEARS THAT WE HAVE PLANNED OUT. SO AGAIN, IN THE, UH, TOTAL DEMAND COLUMN, UH, YOU'LL SEE THAT WE'RE STARTING OFF WITH THE 45,000 ACRE FEET AND THEN DROPPING THAT DOWN TO ROUGHLY 38,000, BUT WE ARE PREPARING FOR THAT. UH, ANOTHER, ANOTHER IMPORTANT ASPECT IS THE RATING FOR WRD, WHICH IS ROUGHLY AROUND 5%. AND THEN, UH, HAVE MW THREE YEARS OF DOUBLE DIGIT. YES. OH, SORRY, I'LL SPEAK MORE INTO THE MIC. UH, IT'S IMPORTANT TO UNDERSTAND THESE FIGURES AS THEY UNDER PRE UNDERPIN THE, UH, PREVIOUS COMMENTS IN THE PREVIOUS SLIDE. ADDITIONALLY, UH, THIS PORTION REPRESENTS SOME OF THE MORE SIGNIFICANT FIXED COST ITEMS THAT ARE BEYOND OUR CONTROL. UH, FOR THIS, UH, SLIDE, IT'S SIMILAR TO THE GAS STRUCTURE WHERE WE HAVE THE FY 25 BUDGET, UH, THE FY 25 EACH, THE FFY 26 BUDGET, AND THEN THE FFY 26 BUDGET WITH THE 8% RATE INCREASE. UM, SO FOR THIS ONE, WE'RE SEEING A, UH, UH, WE'RE SHOWING A MODEST REBOUND IN THE FUND BALANCE AIDED BY SOME OF THE CIP DEFERRALS. UH, FOR FY 26, WE'RE PRESENTING THE TWO SCENARIOS, UH, ONE, ASSUMING THE NO RATE INCREASE, ANOTHER ONE INCORPORATING THE 8% RATE INCREASE, UH, CONSISTENT WITH THE FIVE-YEAR FORECAST SHARED DURING THE LAST YEAR'S, UH, BUDGET WORKSHOP, UH, WHICH INCLUDED THE PROJECTED RATE INCREASE SIMILAR TO WHAT WE DID WITH GAS. SO SIMILAR TO, SIMILAR TO WHAT YOU SAW WITH GAS WITH THE 5%, UH, WE'RE SHOWING YOU THIS 8% UHS AND TO PROVIDE, UH, CONTINUITY BETWEEN THE, UH, PREVIOUS BUDGET WORKSHOPS. HOWEVER, FACTORING IN, UH, LABOR INCREASES, UH, METROPOLITAN'S WATER RATE HIKE, UM, INFLATIONARY PRESSURES WE'RE PROJECTING, UH, HIGHER RATE [01:05:01] INCREASES THAN THE 8%, UH, PROVIDED FROM LAST YEAR. UH, BUT THE EXPENSE PRESSURES WELL, UH, WHEN IT COMES TO EXPENSE PRESSURES, IT'S IMPORTANT TO NOTE THAT THEY ARE NOT, UH, STRUCTURAL, THEY'RE, OR THE, SORRY, WHEN IT COMES TO, UH, IDENTIFYING THE EXPENSE PRESSURES, UH, THEY ARE STRUCTURAL, NOT TEMPORARY. AN 8% WOULD HELP ALIGN REVENUE WITH RISING OUTFLOWS, PARTICULARLY IN, UH, LABOR. UH, THE CIP REPORTED WATER COSTS, UH, VEHICLE ELECTRIFICATION MANDATE THAT SERVICE. SO HERE WE HAVE THE CATEGORY STARTING WITH PERSONAL SERVICES. UH, WE ARE ANTICIPATING 2 MILLION, UH, 2 MILLION IN SAVINGS, UH, PERSONNEL SURFACES, UH, FOR FY 25 ETC, AND WE'RE SHOWING A MODEST INCREASE. UH, THE CIP WE WERE ORIGINALLY BUDGETING THE 50 MILLION, AND NOW WE'RE ESTIMATING TO HAVE ROUGHLY 38 AND A HALF MILLION, AND SOME OF THAT BEING THE DEFERRAL. FY 26, UH, PART OF THE ETC IS THE RESERVE OF THE, UH, 21 MILLION FUNDED FOR THE NEW 2024 BOND. UH, THE 11 AND A HALF DEFERRED, CIP AND FY 25 IS PARTIALLY REFLECTED AND THE INCREASE IN THE FY 26 BUDGET, UH, THIS ADJUSTMENT ALSO CORRELATES WITH THE REDUCED USE OF DEBT PROCEEDS AS SHOWN ON THE NEXT SLIDE. ESSENTIALLY, WE'RE RESERVING OUR ALLOCATION, UH, DRAW DOWN TO PRESERVE FUNDING CAPACITY FOR THE NEXT FISCAL YEAR. UH, O AND M UH, REMAIN RELATIVELY FLAT, UH, UH, DESPITE INFLATION THROUGH BELT TIGHTENING AND LOWER, UH, WATER DEMAND, UH, FOR WATER PURCHASES. UH, ALTHOUGH WATER PURCHASES HAVE EXPERIENCED DOUBLE DIGIT RATE INCREASES, WE'RE PROJECTING LOWER OVERALL COSTS, AND THIS IS DUE TO, UH, LOWER DEMAND. IT'S, UH, SORRY, IT'S ALSO A, IT'S A COMBINATION OF REDUCED DEMAND AND, UH, FAVORABLE SUPPLY MIX, WHICH HAS INCREASED OUR, UH, RELIANCE ON PUMPING WATER, UH, OVER OUR PURCHASE WATER, WHICH IS AN APPROACH THAT SUPPORTS BOTH OUR LONG-TERM, UH, GOALS AND ALIGNS WITH OUR BUSINESS. UH, THE DEBT SERVICE, UH, REPRESENTS A SMALL INCREASE, UH, DUE TO THE ADDITIONAL, UH, LINE OF CREDIT AND REFLECTS OUR NEW GENERAL FUND TRANSFER HAS REMAINED RELATIVELY FLAT. UH, WE'VE COME IN PRETTY CLOSE TO THE TWO POINT AROUND $2 MILLION, SO WE'RE LEAVING THAT, UH, FLAT FOR NOW ON THE REVENUE SIDE. SO, UH, SIMILAR TO WHAT WE DID WITH THE GAS, UH, THE 8% IS, UH, FOR DISCUSSION ONLY. WE'RE NOT PROPOSING ANY FORMAL ACTION TODAY. UH, THE 8% RATE INCREASES FOR ILLUSTRATIVE PURPOSES AND FOR PLANNING ONLY. UH, THIS IS TO PROVIDE THE CONTINUITY FROM THE LAST BUDGET WORKSHOP, HELPING US UNDERSTAND THE LONG TERM IMPACTS FOR REVENUE. UH, FOR THE ETC AND SALES FOR PORTABLE WATER CELLS AND RECLAIMED WATER CELLS, UH, WE ARE PROJECTED TO COME IN RIGHT AT BUDGET, SO THAT IS GOOD NEWS. UH, DEBT PROCEEDS, UH, 13 AND A HALF MILLION IS A CONTINUED DRAWDOWN FROM THE 2024 BONDS. UH, THE ADDITIONAL SEVEN AND A HALF MILLION WILL COME FROM THE LINE OF CREDIT. UH, THIS AMOUNT IS LESS THAN THE ORIGINALLY ANTICIPATED AMOUNT THAT WAS INCORPORATED IN LAST YEAR'S FINANCIAL PLAN. WE HAVE HERE IS, UH, SIMILAR TO THE FIRST SLIDE THAT WE SHOWED THESE, UH, CATEGORY IN. UH, BUT WHAT WE HAVE HERE NOW IS PROPOSED REVENUE, UH, WHICH IF WE WERE GOING TO COMPARE IT TO THE ORIGINAL AMOUNT, UH, WAS ROUGHLY ONLY A MILLION DOLLARS. AND HERE WE'RE TRYING TO GET, UH, A LITTLE BIT MORE PROACTIVE, UH, TOWARDS THAT MINIMUM RESERVE, UH, WHICH WOULD BE A FUND BALANCE GAIN OF ROUGHLY, UH, $6.2 MILLION. HERE YOU CAN SEE HERE WE'RE AN FY 25. WE'RE PROJECTING TO END A YEAR AT, UH, ROUGHLY AROUND $19 MILLION, UH, WITH NO RATE INCREASE, IT WOULD BE AROUND 9.3 MILLION. AND THEN WITH THE PROPOSED REVENUE, WE'RE LOOKING AT SOMEWHERE AROUND 25 MILLION, WHICH IS STILL NOT AT THE MINIMUM, BUT PUTS US IN A BETTER POSITION. ANY QUESTIONS REGARDING WATER, DANIEL? YES. SO HERE THE FUND IS IN A DIFFERENT SITUATION. SO WITH FUND BALANCE WHERE IT IS, WE HAVE THE OPPORTUNITY TO LOOK AT REVENUE IN THE CONTEXT OF WHAT IS THE OTHER OBLIGATIONS, WHICH IS IN TERMS OF A RESERVE POLICY AND THE MAINTENANCE OF A RESERVE POLICY. SO AS WE LOOK AT REVENUE GROWTH AND THE WATER FUND AS A RESULT OF BUDGET AND ACTIONS WITHIN BUDGET, WE'LL KEEP IN MIND THE DECISIONS THAT WE BRING TO YOU IN THE SCENARIOS WILL HAVE MUCH TO DO WITH THIS ASPECT TO IT AS WELL. NOT JUST SIMPLY, UM, BALANCED BUDGET, BUT BALANCED BUDGET WITH THE FINANCIAL OBJECTIVE OF NEEDING TO GROW THE FUND BALANCE BACK UP TO ITS MINIMUM RESERVE LEVEL. IN THAT CONTEXT, YOU'LL HAVE A RANGE OF SCENARIOS OFF OF WHICH TO DECIDE. UH, BUT IT'S IMPORTANT HERE IN THIS CASE, HOW THIS ONE IS DIFFERENT NOW THAN THE GAS FUND. CONSEQUENTLY, DIFFERENT SCENARIOS, DIFFERENT RANGES OF ACTIONS TO TAKE. [01:10:01] THANKS DANIEL. NO PROBLEM. UH, SAME STRUCTURE AS, UH, THE OTHER FUNDS, UH, STARTING WITH FFY 25 BUDGET. UH, AND THEN WE HAVE THE E TCS, THE FY 26 BUDGET, AND THEN THE 7%. UH, SO IT'S IMPORTANT TO REMEMBER THAT THE SEWER FUND IS ROUGHLY ONE 50 THE SIZE OF THE WATER FUND. SO WHILE THE DOLLAR FIGURES ARE SMALLER, UH, THE SAME UNDERLYING PRESSURES ARE AT PLAY. UH, RISING LABOR COSTS, INFLATIONARY TRENDS, AND CAPITAL IMPROVEMENT NEEDS. UH, THE FY 25, UH, ETC SHOWS A MODEST REBOUND IN FUND BALANCE AIDED BY SOME CIP DEFERRALS, OFFSET BY CIP REIMBURSEMENTS. UH, FOR FY 26, AGAIN, WE'RE SHOWING TWO SCENARIOS. ONE, ASSUMING NO RATE INCREASE AND ANOTHER INCORPORATING A 7% RATE INCREASE CONSISTENT WITH, AGAIN, UH, LAST YEAR'S FIVE YEAR FINANCIAL FORECAST. UH, UH, ONE KEY ELEMENT, UH, PUT THIS IN PERSPECTIVE BECAUSE THE SEWER FUND IS MUCH SMALLER, IT'S MORE, MORE, UH, VULNERABLE TO VOLATILITY. UH, THE DIFFERENCE BETWEEN THE MINIMUM AND MAXIMUM RESERVE LEVELS IS ONLY ROUGHLY AROUND $5 MILLION. UH, ROUGHLY THE COST OF ONE AND A HALF CAPITAL PROJECTS. THAT MEANS THAT EVEN A SMALLER INCREASE IN EXPENSES OR A DIP IN REVENUE CAN HAVE A BIG IMPACT. AND AS WE MOVE FROM FY 25 5 TO FY 26. THAT'S EXACTLY WHAT WE'RE SEEING. UH, REDUCED REVENUE, NEW PROJECTS COMING ONLINE, AND OUR FUND BALANCE DROPPING TO THE MINIMUM . OKAY, SO SEWER EXPENDITURES. UH, WE HAVE OUR MAIN CATEGORIES THERE. SO PERSONAL SERVICES, UH, WE'RE SEEING A SLIGHT AMOUNT OF SAVINGS, UH, PROJECTED FROM FY 25. AND THEN WE'RE SHOWING AGAIN, A MODEST INCREASE IN FFY 26 BUDGET. UH, FOR O AND M, UH, IT'S RELATIVELY FLAT, NOT TOO MANY CHANGES OR SURPRISES COMING FROM THE SEWER SIDE. HOWEVER, THE MAIN, UH, DRIVER FOR THE COST COMES FROM THE CIP, UH, FOR FFY 26. ROBS ENGINEERING TEAM RECENTLY COMPLETED A SEWER MASTER PLAN, WHICH NOW INCLUDES, UH, SHIFTING OF PROJECTS TO ACCOMMODATE THE 28 OLYMPICS. THAT'S DRIVING A MORE, UH, STRATEGIC FORWARD LOOKING APPROACH TO OUR INFRASTRUCTURE. UH, THE GENERAL FUND TRANSFER HAS SEEN A, UH, SMALL INCREASE. UM, UH, SO FOR THE FY 25, IT LOOKS LIKE WE'RE GONNA COME IN RIGHT AT BUDGET. BUT FOR FY 26, WE ARE PLANNING TO HIT LIGHTLY. FOR THE REVENUE SIDE, WE HAVE OUR, UM, DAILY SERVICE CHARGES, OUR VOLUMETRIC SALES, OUR SEWER CAPACITY CHARGE, LINE OF CREDIT, AND THE MISCELLANEOUS REVENUE. UH, AS PREVIOUSLY STATED, THE 7% IS FOR ILLUSTRATIVE PURPOSES. UH, THE DAILY, UH, SERVICE AND VOLUMETRIC CHARGES, UH, IS SIMILAR TO WHAT WE'RE SEEING IN, UH, REVENUE IN THE WATER REVENUE, WHERE AGAIN, WE'RE PROJECTING TO END THE YEAR VERY CLOSE TO WHAT WE HAD, UH, BUDGETED. SO THAT IS GOOD NEWS. UH, THE SEWER CAPACITY FEES ARE EXPECTED TO REMAIN FLAT FY 26 IN ORDER TO ACCOMMODATE FOR THE INCREASES IN C-I-P-C-I-P, UH, WE'RE PLANNING TO SECURE AN $8 MILLION LINE OF CREDIT, UH, AND FOR MISCELLANEOUS REVENUE, UH, THE DROP HERE IS DUE TO, UH, FOR THE UTC. THE DROP IS DUE TO A DEFERRAL IN PROJECTS, WHICH HAS NOW BEEN SHIFTED TO THE FY 26. UH, THIS WILL AGAIN BE, UH, REFLECTED IN, OH, THIS WAS REFLECTED. UM, FOR THIS ONE, UH, WE HAVE THE PROJECTED REVENUE. UH, SO THAT'S THE DIFFERENCE BETWEEN THIS ONE. ALTHOUGH WE STILL ARE PROJECTED TO HAVE A, UH, STRUCTURAL DEFICIT OF $1.3 MILLION, UH, WE THINK THAT WOULD STILL PUT US IN A PRETTY GOOD POSITION WHERE WE WOULD STILL BE ABOVE THE MINIMUM TARGET LINE AS REPRESENTED IN THIS GRAPH. UH, SO THE 6.4 MILLION, UH, REPRESENTS WHERE WE PLAN TO END THE FISCAL YEAR, UH, FOR FY SIX WITH NO RATE INCREASE, THAT WOULD LEAVE US SOMEWHERE AROUND 2.2 MILLION. UH, BUT WITH THE PROPOSED REVENUE, WE'RE HOPING TO STAY RIGHT ABOVE THE MINIMUM TARGET THAT. ARE THERE ANY QUESTIONS BEFORE I HAND THIS BACK OVER TO, TO STEPHANIE? YEP. OKAY. THANK YOU DANIEL. SO, TO CLOSE OUT OUR BUDGET WORKSHOP ONE, I WANTED TO SHARE, UH, UM, AN INFOGRAPHIC OF HOW WE BALANCE OUR BUDGET. AND WE HAVE FOUR TOOLS THAT WE REFER TO, WHICH INCLUDE COST CONTROLS, IMPROVING EFFICIENCY, MANAGING DEBT, AND INCREASING REVENUE. AS YOU CAN SEE, WE, WE ARE PROPOSING, UH, OR EXPLORING A COUPLE OF THESE SCENARIOS TO BRING FORTH TO YOU, UM, SOME PROPOSED SOLUTIONS IN THE UPCOMING BUDGET WORKSHOP TOO. AND WITH THAT, [01:15:01] DO YOU HAVE ANY FURTHER QUESTIONS? COMM, COMMISSIONER SCOTT? UH, COULD WE POP THAT SLIDE? KEN, I WANNA TAKE IN THE ILLUSTRATIVE VALUE OF THIS SLIDE. A SCARY SLIDE. , IT'S SHOCKING. UH, THE LAST TIME MY PERSONAL FINANCES LOOKED LIKE THIS, I WAS IN COLLEGE LIVING ON BILL GRANTS AND STUDENT LOANS. UM, THANK YOU FOR THAT SLIDE. THAT'S, THAT HELPS WITH ALL OF THIS IN PERSPECTIVE, OF COURSE, EVEN THOUGH IT'S NOT, UM, MY IDEAL SLIDE. I THINK THAT IT'S WORTH TELLING AND SHARING WITH YOU THE IMPORTANCE OF RESERVES. IT'S, IT'S ONE THING TO BALANCE THE BUDGET, BUT AS WE SEE, UM, IN CERTAIN CIRCUMSTANCES, HAVING RESERVES ALLOWS US TO HAVE A RAINY DAY FUND. SO IT IS SCARY TIMES RIGHT NOW, UH, BUT WE'RE LOOKING TO YOU TO PROVIDE GUIDANCE AND, AND SOME, MAYBE SOME SOLUTIONS, UM, AS WE GO FORWARD. COMMISSIONER SCOTT, ONE OF THE THINGS THAT AS WE WERE WORKING THROUGH THE INFORMATION SESSIONS AND THROUGH THE RETREAT, WE WERE STRESSING THE IMPORTANCE OF A LONG RANGE FINANCE PLAN THAT LOOKS BEYOND FIVE YEARS AND LOOKS 10 YEARS. IT, IT'S BEEN MY EXPERIENCE DEALING WITH THE BODIES THAT PROVIDE OVERSIGHT AND IN SOME CASES REACT TO WHAT YOU SEE HERE. IT, IT'S NOT THAT THIS DOESN'T HAPPEN, UM, OVER THE LIFE OF A UTILITY, THIS CAN HAPPEN. THE BENEFIT OF A 10 YEAR FINANCIAL PLAN IS THAT IT SHOWS AN ABILITY FOR A BOARD TO COMMIT TO A SERIES OF ACTIONS IN THE LONG TERM THAT BUILD THE FUND BALANCE BACK UP. AND IN THAT CASE, THE RATING AGENCIES INTERESTED BOND INVESTORS AND SO FORTH, THEY HAVE SOME PERSPECTIVE ON THE ACTIONS THAT THE BOARD IS COMMITTING TO. AND THEY USE THAT TO EVALUATE THINGS THAT YOU MIGHT DO TO ADDRESS THE SHORT TERM, UH, FUND IMBALANCE. SO THAT WAS ALWAYS MY MINDSET IN TRYING TO BRING FORWARD THIS LONGER RANGE FINANCE PLAN AS A WAY OF BEING ABLE TO COMMUNICATE TO EVERYBODY IN THOSE INSTANCES WHERE THIS DOES HAPPEN, DO WE HAVE A PLAN ON HOW TO GET BACK AND DO WE KNOW THE ACTIONS THAT WE NEED TO COMMIT BOTH STAFF AND BOARD YEAR AFTER YEAR IN ORDER TO STAY ON TRACK? OKAY. ANY OTHER COMMENTS HERE? UM, DO I HAVE ANY PUBLIC COMMENT? ANY COMMISSIONER COMMENT? I, GO AHEAD, LAURA. I JUST WANNA THANK EVERYONE FOR THAT. IT'S, IT'S A LOT TO TAKE IN AND I GREATLY APPRECIATE IT. AND I CAN IMAGINE AN TOLD THAT EVEN JUST ON THE WATER SIDE, YOU'RE PROBABLY HAVING DISCUSSIONS WITH OTHER GENERAL MANAGERS WHO ARE GOING THROUGH EXACTLY THIS AS WE ARE AT METROPOLITAN, AND THEN YOU INCLUDE OUR GAS IN OUR SEWER. SO IT JUST MAKES IT SUCH AN ENORMOUS PROCESS. SO GREATLY APPRECIATE THE WORK YOU'VE DONE. THE REGION THE REGION FINDS ITSELF, AND I, AND I COMMENTED ON THIS TO YOU IN THE RETREAT, RIGHT? UM, EACH FUND HAS ITS UNIQUE PERSPECTIVES ON THE WATER FUND ACROSS SOUTHERN CALIFORNIA. UTILITIES ARE FACING THIS ELEMENT THAT DEMAND TO CONTINUES TO GO DOWN FROM A RESOURCE PERSPECTIVE AND RESOURCE SCARCITY. THIS IS A FANTASTIC RESULT. THE REGION IS GETTING BY WITH LESS WATER. THERE'S REALLY, REALLY DIFFICULT DECISIONS, COMMISSIONER CORDERO, YOU KNOW, THAT ARE COMING ON THE COLORADO. BY THAT, NOT WITHSTANDING, WE GET BACK TO THIS FUNDAMENTAL BUSINESS MODEL ISSUE OF A UTILITY THAT IT REPRESENTS THE SOURCE OF REVENUE THAT WE FACE. AND WE DON'T ADJUST OUR OPERATIONS TO PROVIDE SAFE, CLEAN, RELIABLE WATER ON A PERCENTAGE BASIS. 'CAUSE THE PERCENTAGE DEMAND GOES DOWN WITHIN A CERTAIN PERSPECTIVE. THOSE COSTS INDEED DO CONTINUE EVERY DAY. 'CAUSE IT'S OUR SERVICE THAT THE COMMUNITY. THAT BEING SAID, WE FACE THE PRESSURE ON RATES THAT WE NEED TO, WE NEED TO DEAL WITH. SO ACROSS SOUTHERN CALIFORNIA, YOU'RE CORRECT. AND METROPOLITAN IN PARTICULAR IS DEALING WITH A SITUATION WHERE IT CURRENTLY FACES THE POTENTIAL TO GROW THOSE INCREASES MORE THAN THE 11.5% THAT YOU'VE SEEN. THEY MIGHT INDEED ACTUALLY GO HIGHER, UM, AT SUCH TIME. IF THAT HAPPENS, WE'LL DEFINITELY REPORT TO YOU. BUT, BUT IT IS YOUR CORRECT COMMISSIONER PRESSURES THAT WE'VE THROUGHOUT SOUTHERN CALIFORNIA. OKAY. WELL, WITH THIS REPORT AND ALL THE INFORMATION WE'VE BEEN RECEIVING IN OTHER WORKSHOPS THIS YEAR, UM, WE HAD SOME DISCUSSION AROUND THE CONCEPT OF COMMUNITY COMMUNICATION AND OUTREACH AND DOING SOME MAYBE EXTRAORDINARY [01:20:02] EDUCATION. UM, SO AROUND CLIMATE CHANGE, IN PARTICULAR, UNDERSTANDING THE PRESSURES THAT, AND THIS KIND OF BALANCE THAT WE'RE FACING, IT'S JUST TO BETTER INFORM THE COMMUNITY AS WE LOOK AT THE INEVITABLE REALITY OF RATE INCREASES, WHERE WE CAN HELP MEDIATE THAT ISSUE WITH BRINGING FORWARD, YOU KNOW, INVITING THE PUBLIC TO LEARN MORE. SO WHAT, UM, WHAT I WOULD LIKE AND WHAT OUR BOARD WOULD LIKE, WE'D LIKE TO DIRECT STAFF TO PUT TOGETHER A COMMUNICATION PLAN FOR US IN ADVANCE OF AUGUST, WHICH W WOULD BE OUR, OUR HEARING, OUR TWO 18 HEARING. AND WE'LL TALK MORE ABOUT THIS, BUT I JUST WANTED TO ALERT YOU THAT, UM, WHOEVER'S GOING TO BE INVOLVED IN THAT, I KNOW, BUT SPECIFICALLY WE'RE LOOKING AT NOT JUST A, YOU KNOW, COMMUNICATION PLAN INVOLVING THE MAIL OR WHATEVER EMAILS, BUT HOSTING A COMMUNITY EDUCATIONAL FORUM OF SOME SORT AND OUTREACH WHERE WE INVITE THE COMMUNITY TO UNDERSTAND THAT CLIMATE CHANGE IS EVERYTHING. AND KIND OF GO WITH THAT, THAT MESSAGE AND, AND WORK FORWARD FROM THERE TO AGAIN, JUST NOT BE SPRINGING ALL OF THIS ON THE COMMUNITY IN THE WAY WE ALWAYS HAVE. BUT, BUT JUST BEING A LITTLE, WE'RE, WE'RE IN THE MIDDLE OF A SITUATION THAT IS EXTRAORDINARY. AND SO WE NEED TO STEP UP OUR COMMUNICATION AND OUTREACH AND LIKE TO INVITE COMMISSIONER COMMENT AT THIS POINT. LAURIE. YEAH. THANK YOU. UM, THANK YOU FOR THAT. I, I REALLY APPRECIATE THAT YOU'RE PUTTING AN EMPHASIS ON THAT COMMUNITY OUTREACH. UM, SPECIFICALLY NOW. IT'S, IT'S SO IMPORTANT. AND METROPOLITAN RIGHT NOW IS DOING VERY MUCH THE SAME THING. MAYBE NOT A LITTLE MORE DIFFICULT. 'CAUSE THEY DON'T HAVE THE, THEY'RE NOT AS, YOU KNOW, SMALL AS WE ARE, BE ABLE TO GO OUT AND, AND SERVE OUR, OUR CUSTOMERS, BUT, AND TO REACH OUR CUSTOMERS. BUT, UM, THROUGH THE WHOLE ISSUE OF CAMP FOR WATER, WHICH IS A CLIMATE ADAPTION MANAGEMENT PLAN, ALL A LOT OF OUR DECISIONS, IN FACT, ALL OF OUR DECISIONS FROM NOW ON WILL BE MADE WITH THAT LENS, LOOKING AT WHAT CLIMATE CHANGE IS DOING, UM, WITH REGARDS TO THE DECISIONS THAT WE HAVE TO MAKE AND THE PROJECTS THAT WE'RE DOING AND THE THINGS THAT WE NEED TO DO. UM, ALSO SPECIFIC TO THAT, THE INCREASES WOULD BE POSSIBLE WAGE INCREASE. AND I'VE SEEN THAT AS WELL AT, AT METROPOLITAN AND HERE SPECIFICALLY. 'CAUSE WE, YOU KNOW, WE LOSE PEOPLE TO DIFFERENT ORGANIZATIONS WHO, WHO PAY MORE. UM, BUT OVERALL, I THINK OUR COMMUNITY WOULD UNDERSTAND THAT WE HAVE TO MAINTAIN THE INTEGRITY OF OUR SYSTEM. AND, AND THAT'S SEWER, WATER, AND GAS. WE HAVE TO MAINTAIN THAT BECAUSE WHEN YOU DON'T, THEN WE HAVE SITUATIONS THAT WILL CAUSE US TO DRAW DOWN ON OUR RESERVES. SO IT'S KIND OF A, A CATCH 22. I ALWAYS KIND OF GO BACK TO MY OWN HOME OR OUR HOMES AND MAYBE THE PELL GRANT SITUATION HERE, . BUT WHERE YOU, YOU KNOW, YOU SIT AROUND A TABLE WITH A FAMILY AND YOU SAY, OKAY, WELL YOUR FATHER OR YOUR MOTHER LOST THE JOB, YOU KNOW, YOUR MOTHER LOST WHATEVER. AND SO WE NEED TO FIGURE OUT HOW WE'RE GONNA PAY FOR THIS. HOW ARE WE GONNA, YOU KNOW, MOVE FORWARD WITH TUITION AND ALL THE THINGS THAT ARE IN FRONT OF US. AND THEN DECISIONS ARE MADE BASED ON THAT. AND I DO BELIEVE, EVEN THOUGH WE HAVE SOME PEOPLE THAT COME OUT AND SPEAK AGAINST RATES, AND I TOTALLY UNDERSTAND THAT, THAT IF WE GIVE THEM THE EDUCATION THEY NEED, BASED ON WHAT YOU'VE SAID, PRESIDENT MCGUIRE, PEOPLE CAN BETTER UNDERSTAND WHY WE ARE MAKING SOME OF THE DECISIONS WE ARE. UM, AND HAVING SAID THAT, WE'RE GONNA DO THE BEST THAT WE CAN TO KEEP 'EM AS AFFORDABLE AS WE CAN. 'CAUSE THAT'S A BIG DISCUSSION AT STATE AND LOCAL LEVELS AS WELL. THANK YOU GUYS FOR THE WORK YOU'RE DOING. COMMISSIONER SCOTT. THANK YOU. UH, AND JUST TO PIGGYBACK ON COMMISSIONER CORDERO, UH, IT'D BE WONDERFUL IF IN OUR FORUM WE'D BE ABLE TO HAVE SOME INTERACTION WITH PUBLIC QUESTIONS AND ANSWERED IN A WAY THAT'S MORE INTERACTIVE THAN PROP TWO 18. EXACTLY. RIGHT. SO WE'RE HAPPY TO WORK AND HELP IN ANY WAY AND TO WORK WITH WHOEVER ANNA TOLL IDENTIFIES AS A TEAM THAT WOULD BEGIN WORKING ON THIS COMMUNICATION PLAN. AND AGAIN, IT'S TO INCLUDE A FORUM, BUT, BUT IT'S ALSO A, A BIGGER PLAN THAN JUST THAT. RIGHT. OKAY. ANATOL. YEAH, NO, UH, UNDERSTOOD IN ALL YOUR COMMENTS, UH, I THINK COMMUNICATION IS INCREDIBLY IMPORTANT BECAUSE THESE ARE VERY, VERY DIFFICULT DECISIONS THAT WE COLLECTIVELY FACE WITH, UH, WITH YOU TOGETHER. AND SO, CONSEQUENTLY, YOU MENTIONED THE WORD UNDERSTANDING. I REFLECT BACK ON COMMENTS THAT I'VE MADE IN OTHER VENUES ON THE ISSUE OF AFFORDABILITY. AND I'VE COMMENTED BEFORE THAT I OFTEN THINK OF AFFORDABILITY AS A CHOICE. THAT WHEN THERE IS SOMETHING THAT YOU MUST DO AND [01:25:01] EMPHASIZE THE WORD ON MUST, YOU MUST DO THIS, THEN THE OPTIONS THAT ARE PRESENTED TO YOU, YOU VIEW THOSE OPTIONS. AND I TRY TO ASSESS WHICH ONE IS THE BEST VALUE. AND KNOWING THAT YOU MUST DO SOMETHING AND THEN PICKING THE OPTION THAT DELIVERS YOU THE MOST VALUE, THAT IS INDEED THE AFFORDABLE CHOICE TO MAKE. UH, I THINK IT'S IMPORTANT TO FOLLOW THAT STRUCTURE THAT I GAVE BECAUSE IT PROVIDES INSIGHT INTO THE CHALLENGES THAT WE FACE COLLECTIVELY, BOTH STAFF AND YOU AS THE BOARD AND MANAGING THE SERVICES THAT WE PROVIDE TO THE COMMUNITY EACH AND EVERY DAY IN THE FACE OF THE CHALLENGES THAT WE'RE EXPERIENCING. SO, YES, NO, WE, WE TAKE YOUR DIRECTION. WE'LL WORK WITH YOU FURTHER ON THE DETAILS AND WE WILL UNDERTAKE THAT. GREAT. I THINK CERTAINLY THERE IS A GAP IN COMMUNITY UNDERSTANDING OF THAT MUST WHY MUST. YES. OKAY. THANK YOU. THANK YOU VERY MUCH. THANK YOU, STEPHANIE. THANK YOU SO MUCH. OKAY. WHERE ARE WE? I, UH, DO I HAVE A MOTION TO RECEIVE AND FILE? MOTION TO RECEIVE AND FILE? SECOND AND A SECOND. THANK YOU. ALL IN FAVOR SAY AYE. AYE. ANY OPPOSED? THE MOTION TO RECEIVE AND FILE IS CARRIED. THANK YOU. OKAY. NOW WE HAVE [8. 25-55170 Receive a verbal presentation on the Water Supply Update.       Suggested Action: Receive verbal report. ] DEAN WANG. UH, ITEM NUMBER EIGHT IS TO RECEIVE A VERBAL PRESENTATION ON THE WATER SUPPLY UPDATE. THANK YOU. GOOD MORNING, COMMISSIONERS. UH, THIS PRESENTATION WILL CERTAINLY BE LESS DENSE, UM, MAYBE LESS, UH, OR MORE UPBEAT THAN THE LAST ONE. UH, BUT IT IS A MIXED BAG. I'LL, I'LL GIVE YOU THAT SPOILER THEN. IT'S NOT ALL GOOD NEWS. SO, JUST AS A REFRESHER, UH, ON OUR HYDROLOGY HERE IN SOUTHERN CALIFORNIA, CALIFORNIA AS A WHOLE, UH, WE STARTED OUR WATER YEAR IN OCTOBER, UH, WHERE THAT'S THE BEGINNING OF THE RAINY SEASON. UH, AND THAT'S INDICATED BY THE BLUE ON THIS TIMELINE. AND THROUGH DECEMBER THROUGH MARCH IS WHEN WE GET THE MAJORITY OF OUR RAINFALL, UH, THROUGH APRIL AND MAY, THE RAIN STARTS TO TAPER OFF. AND THEN GOING INTO JUNE, UH, JUNE THROUGH SEPTEMBER, WE SEE VERY LITTLE OR OR NO RAIN. AND SO, UH, DURING DECEMBER, WE GAVE THE FIRST WATER SUPPLY UPDATE AND JUST, UH, WITH THE INITIAL STATE WATER PROJECT ALLOCATION, UH, THERE HAVE BEEN UPDATES TO, UH, THE BOARD THROUGHOUT THESE LAST FEW MONTHS. AND, UH, BARRING ANY SIGNIFICANT, UH, DEVELOPMENTS, THIS MIGHT BE THE LAST TIME THAT WE DO A WATER SUPPLY UPDATE OR THIS WATER YEAR. SO IF YOU HAVE ANY QUESTIONS, UH, PLEASE ASK. 'CAUSE YOU MIGHT NOT GET ANOTHER WASP SUPPLY UP DATE UNTIL NEXT DECEMBER. SO TODAY I'LL COVER OUR FOUR DIFFERENT, UH, WATER SUPPLIES. AND SO, UH, STATE WATER PROJECT, COLORADO RIVER, AND HOW THOSE GET TO METROPOLITAN AND HOW METROPOLITAN MANAGE THOSE SUPPLIES TO DELIVER IMPORTER WATER TO, UH, SIERRA LONG BEACH. AND THEN I'LL COVER OUR GROUNDWATER SUPPLIES. SO THERE ARE A LOT OF LINES ON THIS GRAPH HERE, BUT THIS IS THE STATE, UM, NORTHERN CRS SNOWPACK. AND SO, UH, A LOT OF COLORS. BUT IF YOU'LL NOTICE, THIS BLUE SHADED REGION IS THE AVERAGE A SNOWPACK. UH, AND THEN THE, THE DIFFERENT LINES ARE DIFFERENT YEARS HISTORICALLY, AS TRYING TO SHOW THE HISTORICAL HIGHS AND HISTORICAL LOWS. UH, BUT THIS YEAR IS TRACKED HERE IN THIS, UH, BLUE LINE. UH, AND WHAT YOU'LL NOTICE IS IN THE NORTHERN SIERRA WHERE WE GET OUR STATE WATER PROJECT WATER, UH, IT WAS A RELATIVELY AVERAGE YEAR, SLIGHTLY ABOVE AVERAGE, UH, AT THE PEAK. UH, BUT SINCE THEN, SINCE THE PEAK, WE'VE HAD A QUICK DECLINE IN THE SNOWPACK. AND THIS, UH, GRAPH IS A COUPLE WEEKS OLD, BUT, UH, ESSENTIALLY IT IS BEEN FALLING THAT SAME TRAJECTORY. WE HAD A LITTLE BIT OF, UH, PRECIPITATION, BUT THAT THAT BARELY, UM, MOVED THE, THE LINE WE WE'RE BELOW THE AVERAGE NOW. AND SO, UH, COMMISSIONER MCGUIRE, YOU'RE MENTIONING THE IMPORTANCE OF CLIMATE CHANGE. AND SO THIS IS SOMETHING I REALLY WANNA HIGHLIGHT BECAUSE IT'S, IT'S STARTING TO BECOME A TREND THAT IS HAPPENING YEAR TO YEAR, IS THAT EVEN THOUGH WE GOT AN AVERAGE SNOWPACK AT, AT THIS POINT, UH, WHEN WE, WE GOT THIS GRAPH, WE WERE AT 87% OF THE AVERAGE TO DATE. AND SO THE SNOWPACK IS MELTING FASTER NOW THAN IT HAS BEFORE IN THE PAST. UH, THIS SLIDE HERE, UH, THE PICTURE IS, UH, FROM BACK IN EARLY APRIL WHEN THEY TOOK THE SNOW SURVEY. AND IF YOU CAN SEE THE RESOLUTION ON THE, THE PROJECTOR'S GOOD ENOUGH, I THINK WHERE YOU CAN SEE THE LITTLE SNOW, UH, SNOWFLAKES. IT WAS ACTIVELY SNOWING, UH, DURING THAT TIME. AND SO, UH, IN APRIL, UH, UH, PRIOR TO APRIL, THE ALLOCATION HAD BEEN 40%. UH, AFTER THEY TOOK THIS SURVEY, UH, THEY ACTUALLY, UH, WE WERE ANTICIPATING THAT THEY WOULD, UH, AND THEY HAVE INCREASED JUST TWO DAYS AGO, THE ALLOCATION TO 50% ON THE STATE WATER PROJECT, UH, AGAIN, BARRING, UH, SIGNIFICANT RAIN EVENTS. I KNOW IT'S, UH, PROJECTED TO RAIN, UH, NEXT WEEK A LITTLE BIT, BUT THAT MAY NOT, MAY OR MAY NOT IMPACT [01:30:01] THE FINAL ALLOCATION. IT MAY, THE FINAL ALLOCATION MAY BE 50%. SOMETHING IMPORTANT TO POINT OUT IS THAT, UH, THERE ESTIMATES THAT ESTIMATES THAT IF THE DELTA CONVEYANCE PROJECT, UH, WAS CONSTRUCTED, UH, ALREADY AND IN, IN EXISTENCE TODAY, UH, THAT PROJECT COULD HAVE HELPED TO INCREASE ALLOCATION BY 20%. AND SO WE WOULD BE LOOKING AT A 70% ALLOCATION INSTEAD OF A 50%. AND SO, UH, COMMISSIONER CORDERO, AS YOU'RE, UH, HEARING DIFFERENT DISCUSSIONS ON THE IMPORTANCE OF THE DELTA CONVEYANCE PROJECT, UH, THIS IS, UH, JUST THIS YEAR'S, UH, IMPACT THAT THAT PROJECT WOULD'VE PROVIDED. SO THIS GRAPH IS OF THE COLORADO RIVER, UPPER COLORADO RIVER BASIN. UH, AND AGAIN, THIS YEAR WAS A VERY AVERAGE YEAR. YOU'LL SEE THE PEAK WAS TIMING WISE, UH, AND, UH, VOLUME WISE, ALMOST EXACTLY AT THE AVERAGE HISTORICAL AVERAGE. A VERY SIMILAR, UH, TREND WITH CLIMATE CHANGE. A VERY, VERY STEEP DECLINE IN THAT SNOWPACK. IT HAS MELTED OFF VERY QUICKLY. UM, AND SO, UH, EVEN THOUGH WE HAD A HUNDRED PERCENT OF SNOWPACK, UH, THIS YEAR, HISTORICALLY, WHAT HAPPENS IS THE SNOW WILL MELT, RUN OFF INTO THE RIVERS, UH, YOU KNOW, SATURATE THE GROUND, UH, AND, AND SLOWLY, UH, MAKE ITS WAY TO OUR RES RESERVOIRS WHERE WE CAN TAKE ADVANTAGE OF THAT AS WATER SUPPLY. UH, AND THEN EVENTUALLY THERE'S A LITTLE BIT EVAPORATION. THIS IS, YOU KNOW, YOUR ELEMENTARY SCHOOL HYDROLOGIC CYCLE, BUT EVENTUALLY THERE WILL BE SOME EVAPORATION, UH, WHERE SOME IS LOST TO THE ATMOSPHERE IN LAKE MEAD, WHERE IT'S, YOU KNOW, HOT AND IN THE DESERT. BUT HISTORICALLY, WE CAN AT LEAST CAPTURE MOST OF THAT SNOWFALL, UH, INTO WATER SUPPLY. WHAT IS NOW HAPPENING WITH, UH, CLIMATE CHANGE AND INCREASED TEMPERATURES IS THAT SNOW IS NO LONGER RUNNING OFF INTO WATER. IT IS ACTUALLY SUBLIMATING, IT'S GOING STRAIGHT FROM SNOW STATE TO EVAPORATION AND BYPASSING THE RUNOFF AND BYPASSING, UH, ALL OF OUR, OUR ABILITY TO CAPTURE AND USE THAT WATER. SO EVEN THOUGH, UH, SO THIS IS SOMETHING TO, TO TRACK IN THE FUTURE, UH, EVEN THOUGH WE MAY GET AVERAGE SNOW YEARS, THAT DOESN'T TRANSLATE TO AN AVERAGE WATER SUPPLY. SO WE'RE THIS YEAR PROJECTED TO GET 67% RUNOFF, EVEN THOUGH WE HAD A HUNDRED PERCENT SNOW PACK. MOVING ON TO METROPOLITAN AND HOW THEY USE THE, UH, STATE WATER PROJECT SUPPLY IN COLORADO RIVER SUPPLY, UH, THIS SLIDE, AGAIN, IS A LITTLE BIT OLD, BUT, UH, AT 40% ALLOCATION, METROPOLITAN WAS ESSENTIALLY PROJECTING THAT THE TWO SUPPLIES COMBINED WOULD MEET THEIR DEMAND ESTIMATES WITH A TINY BIT OF SURPLUS. NOW, WITH THE 50% ALLOCATION, UH, METROPOLITAN WILL HAVE ADDITIONAL WATER THAT THEY WILL, UH, FIND WAYS TO PUT INTO STORAGE. WE'RE ALREADY SITTING ON RECORD STORAGE. AND SO THE GOOD NEWS IS THAT AT LEAST FOR THE NEXT FEW YEARS, UH, WE WILL HAVE ADEQUATE SUPPLY, UH, DRAWING DOWN THAT STORAGE IF WE HAPPEN TO GO INTO A DRY YEAR, UH, OR MULTIPLE DRY YEARS. MOVING ON TO GROUNDWATER, WE'LL GO BACK TO LOOKING AT THE SNOWPACK. AND THIS IS THE SOUTHERN SIERRA SNOWPACK. AND SO THIS IS, THIS SNOWPACK MORE INDICATIVE OF THE RUNOFF THAT WOULD, UH, COME DOWN INTO OUR GROUNDWATER BASINS. AND SO, AGAIN, ALL THE DIFFERENT COLOR LINES, BUT IF YOU FOCUS ON THE AVERAGE HERE, UH, IN SOUTHERN, UH, CALIFORNIA, MAY HAVE BEEN FOLLOWING THE NEWS THIS YEAR. WE, WE ACTUALLY GOT BELOW AVERAGE RAINFALL DOWN HERE IN SOUTHERN CALIFORNIA. AND SO THAT'S ONE ISSUE WHERE WE'RE ALREADY STARTING OFF AT LESS SNOWPACK THAN, UH, THAN AVERAGE. UH, AND AGAIN, IT'S, IT'S MELTING OFF SLIGHTLY FASTER THAN HISTORICALLY AS WELL. UH, SO, SO TRANSLATE THAT INTO OUR GROUNDWATER BASINS. AND SO, UH, WATER REPLENISHMENT DISTRICT HELPS TO REPLENISH OUR GROUNDWATER BASINS, SPECIFICALLY CENTRAL BASIN, WEST BASIN. AND THIS IS A CHART OF THEIR REPLENISHMENT ACTIVITIES. THE NATURAL RUNOFF HAS, UH, NOT, UH, BEEN SUFFICIENT TO MEET OUR, UH, PUMPING DEMANDS, PUMPING OUTTA THE BASIN. UH, HISTORICALLY WE'VE HAD, UH, OVERDRAFT AND SO THERE'S BEEN OVER THE HISTORY, UH, SUPPLEMENT OF RECYCLED WATER AND, UH, PREVIOUSLY IMPORTED WATER TO HELP BALANCE, UM, THE PUMPING DEMAND WITH WHAT WE CAN CAPTURE NATURALLY THROUGH STORMWATER RUNOFF. AND SO THIS GRAPH, UM, SHOWS HOW MUCH HAS BEEN REPLENISHED THROUGH, UH, RE RECYCLED WATER. AND EVEN THOUGH IT'S AT 71%, IT'S BECAUSE WE'RE NOT A HUNDRED PERCENT AWAY OF OUR WAY THROUGH THE WATER YEAR. AND SO, UH, WD DOES ANTICIPATE THAT BY THE END OF THE YEAR, THEY'LL GET TO ABOUT A HUNDRED PERCENT RECHARGE WITH RECYCLED WATER. HOWEVER, ON THE STORMWATER CAPTURE SIDE, YOU WOULD EXPECT THAT WE'RE, WE WOULD BE SOMEWHERE SIMILARLY AROUND 71%. UH, BUT WE ARE NOWHERE NEAR THAT AT 23%. ONE BECAUSE OF THE DECREASED SNOWPACK IN SOUTHERN CALIFORNIA. BUT SECONDLY, UH, THERE HAS BEEN AN IMPACT TO OUR WATER SUPPLY BECAUSE OF THE FIRES. AND SO THE ALT DINA FIRES ARE IN OUR WATERSHED, AND BECAUSE OF THE, THE, UH, DEBRIS AND, UM, UM, ESSENTIALLY, UH, CONTAMINANTS TO THE RUNOFF, UH, THEY HAVE NOT BEEN ABLE TO ACTUALLY DIVERT THAT INTO THE SPREADING GROUNDS. THEY'VE HAD TO LET SOME OF THAT GO, UH, FLOW OUT TO THE OCEAN BECAUSE OF THE WATER QUALITY ISSUES. AND SO THAT HAS CAUSED OUR CAPTURE OF AVAILABLE STORMWATER TO FURTHER DECREASE. UH, AND, AND SO [01:35:01] THAT'S WHY WE'RE SITTING AT 23%. AND THEY, THEY DO NOT, UH, WRD DOES NOT ANTICIPATE THAT WE WILL, UH, GET ANYWHERE NEAR OUR, OUR FINAL, UH, RUNOFF AMOUNT. UH, THEY'RE STILL TRYING TO, TO, UH, FORECAST EXACTLY WHERE WE'RE GONNA BE CAPTURE WISE. AND SO WHAT THAT MEANS IS, THIS IS A GRAPH OF WHERE WE STARTED THE WATER YEAR, OCTOBER 1ST. UM, THE WAY THAT THEY MANAGED THE BASIN, THEY WERE AT ABOUT 101% OF THE, THE, UH, OPTIMUM QUANTITY THAT ESSENTIALLY YOU CAN LOOK AT IT AS OUR, OUR RES OUR GROUNDWATER RESERVOIR CAPACITY. HOWEVER, BECAUSE OF HOW, UM, UNDER CAPTURED OUR STORMWATER HAS BEEN, WE'VE ALREADY GONE DOWN TO 78% AS OF APRIL 3RD. UH, AND THE PROJECTIONS I GOT FROM WRD, THEY ESTIMATE THAT, UH, BY THE END OF THIS YEAR WILL BE DOWN CLOSER TO ABOUT 50%, WHICH IS REALLY SIGNIFICANT BECAUSE IF YOU THINK ABOUT IT, TO GO FROM A HUNDRED PERCENT DOWN TO 50% OF OUR RESERVOIR CAPACITY IN ONE YEAR, THAT ESSENTIALLY MEANS TWO, TWO BAD YEARS AND OUR RESERVOIR CAPACITY WILL BE DRAINED. UH, AND SO, UH, WD IS ACTIVELY, UM, LOOKING AT DIFFERENT WAYS TO REPLENISH MANAGING THEIR BUDGET AND THEIR RESERVES, UH, TO FIND WAYS TO, UM, ENSURE THAT THE RESERVOIR, UH, ARE GROUNDWATER RESERVOIRS STAY REPLENISHED. BUT THAT, THAT IS A VERY IMPORTANT TREND TO, TO KEEP AN EYE ON, AS WELL AS JUST OUR ABILITY TO CAPTURE, UH, LOCAL STORMWATER. SO WITH THAT, I CONCLUDE MY PRESENTATION AND WELCOME ANY QUESTIONS FROM THE BOARD THAT'S SLIGHTLY MORE UPBEAT. , I'M NOT SO SURE . YEAH, THAT'S REALLY ALARMING NEWS, I GUESS. NOT UNEXPECTED, BUT THANK YOU SO MUCH. YOU'RE SUCH A CLEAR COMMUNICATOR. I REALLY APPRECIATE HOW WELL YOU EXPLAIN THINGS. ANY, ANY, UH, ANY PUBLIC COMMENT HERE? ANY COMMISSIONER COMMENT? DEAN, IT DOESN'T SURPRISE ME THAT YOU LISTENED IN ELEMENTARY SCHOOL AND LEARNED ABOUT EVAPORATION. I, ON THE OTHER HAND, GOT A C IN CONDUCT. 'CAUSE I WAS TALKING TO MY NEIGHBOR, , SO I JUST REALLY LEARNING TO UNDERSTAND IT NOW. BUT AS YOU KNOW, EVAPORATION IS ONE OF THOSE ISSUES THAT HAS BEEN, UH, UNDER CONSIDERATION WHEN THE UPPER BASIN SAYS TO THE LOWER BASIN YOU SHOULD BE IN, YOU KNOW, THAT SHOULD BE OUTTA YOUR ALLOCATION BECAUSE YOU'RE THE ONES WHERE IT'S BEING EVA, THE EVAPORATION LOSSES ARE HAPPENING. SO I'M VERY KEY, BUT THANK YOU. IT WAS A GOOD REPORT. YEAH. GOING INTO THE FUTURE, WE MIGHT BE ABLE TO SAY, WELL, IT'S HAPPENING IN NORTHERN BASIN, IT'S EVAPORATING IN THEIR PART, SO, WOW. THAT'S INTERESTING. OKAY. AND YEAH, SO ANOTHER WAY TO LOOK AT WHAT DEAN SAID ABOUT SUBLIMATION IS, YOU KNOW, THEY, THEY USED TO SHOW YOU PICTURES ABOUT HOW THE, THE VACATIONERS IN ASPEN, UH, WERE ENJOYING SUCH A WARM SPRING THAT THEY WERE SKIING IN THEIR BATHING SUITS. AND EVERYBODY THOUGHT THAT WAS A FANTASTIC IDEA, UH, ON ALL THINGS. YOU'RE VACATIONING, YOU'RE SKIING, YOU'RE IN YOUR SWIM TRUNK SKIING. IT'S KIND OF FUNNY, UH, EXCEPT LIKE I TOLD YOU, CLIMATE CHANGE CHANGES EVERYTHING. NOW YOU'RE LOOKING AT WATER SUPPLY EVAPORATE BEFORE YOUR VERY EYES AND SOMEHOW SKIING IN YOUR SWIM TRUNKS IS NOT REALLY SUCH A FUN IDEA ANYMORE. SO, UM, THAT IS ONE OF THE THINGS THAT DEAN PRESENTED TODAY. THE OTHER THING THAT HE PRESENTED ON THIS ISSUE OF CLIMATE CHANGE CHANGING EVERYTHING, IS THAT WE TALK ABOUT OUR GROUNDWATER RIGHTS AS OUR LEGAL RIGHT TO PUMP. AND INDEED IT IS, IT IS OUR LEGAL RIGHT TO PUMP THAT AMOUNT. IN FACT, IF WE DO CONTRACT LEASING AND OTHER THINGS, WE ARE ENGAGING AND CONTRACTUAL ABILITIES TO PUMP A VERY, VERY CHEAPER RESOURCE COMPARED TO IMPORTED WATER. BUT I WANT YOU TO UNDERSTAND THAT THE VERY NATURE OF THAT LEGAL JUDGMENT IS PREMISED UPON A CERTAIN AMOUNT OF NATURAL REPLENISHMENT, NATURAL REPLENISHMENT FROM THE RIVER BASIN, THE SAN GABRIEL RIVER BASIN. IN THIS CASE, DEAN'S POINTING OUT THAT WITH CLIMATE CHANGE, THINGS CAN HAPPEN WHERE WILDFIRES ALL OF A SUDDEN BECOME ALSO EQUALLY IMPORTANT IN THE NATURAL REPLENISHMENT THAT YOU NEED. WHAT COULD HAPPEN IN RESPONSE TO THAT? WELL, WRD WHO'S IN CHARGE OF THE BASIN, THEY WOULD STILL HAVE TO MAKE UP THIS WATER THAT WILL PUT PRESSURE ON IMPORTED SUPPLIES TO REINITIATE MORE IMPORTED WATER COMING INTO THE BASIN, BUT AT A COST. AND CONSEQUENTLY, WE WOULD SEE WR D'S RATES GO UP, UH, HIGHER THAN THEY ARE TODAY BECAUSE THEY WOULD ALL OF A SUDDEN HAVE TO START, MAKE UP THIS DEFICIT WITH IMPORTED WATER. WHEN DEAN SHOWED YOU THAT IN ONE YEAR YOU COULD GET A CHANGE AT 50%, IT'S IMPORTANT TO NOTE THAT IN THE PAST, PRIOR TO THE EMPHASIS ON CLIMATE CHANGE, WRD KNEW HOW TO MANAGE THE BASIN. AND SO THEY HAD COMMITMENTS TO AMOUNTS OF WATER ON WHAT THEY CALL A 20 YEAR AVERAGE. LIKELIHOOD NOW IS THAT PRESSURES GOING FORWARD. A 20 YEAR AVERAGE IS PERHAPS NOT THE RIGHT APPROACH TO MANAGE THE BASIN. AND THEY'LL HAVE TO UPDATE THEIR ANALYSIS AND UPDATE THEIR PROCESSES, WHICH TO BE FAIR, THEY, THEY ARE DOING THAT RIGHT NOW AS WE SPEAK, [01:40:01] BUT THEY'RE REACTING. SO EVERYTHING IS CHANGING BEFORE OUR VERY FEED, INCLUDING THE RELIABILITY OF OUR SUPPLIES, WHICH CALLS INTO QUESTION ALL THE DIFFERENT THINGS THAT, THAT WE BRING TALK ABOUT. THANK YOU. GREAT. SO WE ASKED FOR INFORMATION THROUGHOUT THE YEAR. WE WOULD APPRECIATE YOU FULFILLING THAT PROMPT, THAT PROMISE, THAT ASK. UM, SO THIS IS ITEM IS FOR INFORMATION ONLY, NO ACTION IS REQUIRED. UM, THANK YOU. THANK YOU DEAN. [9. 25-55171 Recommendation to receive and file the April 2025 General Manager’s Monthly Report.       Suggested Action: Approve recommendation. ] ITEM NUMBER NINE, OUR LAST ITEM RECOMMENDATION TO RECEIVE AND FILE THE APRIL, 2025 GENERAL MANAGER'S MONTHLY REPORT. A**L. YEAH, I JUST HAD TWO ITEMS FOR YOU. UH, ONE WAS ALREADY MENTIONED, UH, THE CAMP FOR WATER PROCESS WAS ADOPTED BY METROPOLITAN. UM, IT'S AN ACRONYM. THERE'S A LOT OF WORDS IN THERE. UH, I WANT YOU TO UNDERSTAND THAT IT REPRESENTS AN APPROACH TO LONG RANGE WATER RESOURCES PLANNING. IT IS A SOUND APPROACH TO WATER RESOURCES PLAN, AND IT'S VERY CONSISTENT WITH THE APPROACH THAT WE UNDERTOOK IN OUR VERY FIRST WATER RESOURCES PLAN, WHICH DEAN IS NOW UPDATING. I JUST WANTED TO POINT THAT OUT TO YOU BECAUSE AS YOU SEE THESE ELEMENTS OR REFLECT ON THEM, WE'LL BE ALSO TRYING TO MAKE AN EFFORT TO TIE THEM IN TO THE PLANNING THAT WE'RE DOING IN THE UPDATES THAT DEAN WILL SHARE WITH YOU AS WE GO. THE OTHER ONE IS NOW JUST SIMPLY A TESTAMENT TO WHAT DEAN PRESENTED TO YOU. IT WAS ACTUALLY FRONT PAGE OF THE LA TIMES. DESPITE THE HISTORIC 2023 RAINS, LA'S DEEPEST AQUIFERS REMAIN DEPLETED. THE RAIN IS SIMPLY FALLING SO FAST THAT IT RUNS OFF INSTEAD OF GIVING A GOOD SOAKING TO THE DEEPER LAYERS OF THE AQUIFER, WHICH WAS THE VERY SOURCE OF SOME OF THESE ADJUDICATED WATER RIGHTS THAT WE WERE ENJOYING. AND THAT'S IT, THAT'S ALL I HAVE FOR THIS REPORT. OKAY, ANY PUBLIC COMMENT, ANY COMMISSIONER COMMENT? DO YOU HAVE A MOTION TO RECEIVE AND FILE MOTION TO RECEIVE A FILE? THANK YOU. A SECOND. SECOND. THANK YOU. ALL IN FAVOR SAY AYE. AYE. ANY OPPOSED? NO, THE MOTION CARRIES. THANKS. A**L, UH, [PUBLIC COMMENT Opportunity to address the Utilities Commission on non-agenda items. Each speaker is limited to three minutes to make their comments unless extended by the Board.] THIS IS THE PUBLIC COMMENT PERIOD. ANYONE WISHING TO SPEAK ON A NON AGENDA ITEM? SEEING NONE, UH, THE PUBLIC COMMENT PERIOD IS NOW CLOSED. AND NOW WE HAVE ANNOUNCEMENTS. [ANNOUNCEMENTS] I HAVE A COUPLE. UM, FIRST I'M PLEASED TO ANNOUNCE THE APPOINTMENT OF OUR INCOMING COMMISSIONER, CHARLIE PARKIN. CHARLIE, UM, IS FORMER CITY ATTORNEY. AND, UM, OF COURSE WE KNOW THAT THIS IS BITTERSWEET FOR US BECAUSE IT KIND OF SIGNALS BOB PARKIN STEPPING DOWN AFTER MORE THAN 10 YEARS OF SERVICE. AND HE, PARDON? BOB SHANNON. PARDON ME. BOB SHANNON, THE BOB'S . I, I GOT THE OTHER, I KNOW CHARLIE'S UNCLE IS BOB PARKIN, SO I KINDA GOT THE TWO MIXED UP. ANYWAY, BOB SHANNON, UM, AND I DON'T KNOW WHAT HAPPENED TODAY, BUT HE JUST DECIDED TO STAY HOME. BUT, UM, ANYWAY, WE WILL BE HONORING AND THANKING HIM IN THE FUTURE. AND, UH, WE'RE EXCITED ABOUT, ABOUT CHARLIE, ABOUT THE EXPERTISE HE BRINGS, AND JUST TO SAY THAT, UH, HE'S CURRENTLY GOING THROUGH THE ONBOARDING PROCESS AND WE DON'T, UH, HAVE AN OFFICIAL START DATE YET FOR HIM, BUT IT WILL BE IN THE NEXT FEW MONTHS. UH, THAT PROCESS TAKES SOME TIME, AS WE KNOW. SO WE'LL JUST WELCOME HIM AND WE HAVE THE OPPORTUNITY AND HOPEFULLY HE'LL BE A GUEST AMONG THE AUDIENCE AT SOME POINT BEFORE HE TAKES, TAKES HIS SEAT UP HERE, HERE. UM, AND THEN I WANNA CALL ON, UH, COMMISSIONER SCOTT, VICE PRESIDENT SCOTT, TO PROVIDE A BRIEF SUMMARY. DON'T GIVE THAT LOOK . THAT LAST TIME I DID THAT TO YOU. YOU'RE LIKE, OOPS, I FORGOT. SO ANYWAY, UM, A SUMMARY REPORT OF THE APRIL 24TH FINANCE COMMITTEE MEETING. THANK YOU. YEAH, JUST BRIEFLY, THE FINANCE COMMITTEE MEETING THAT LAST THURSDAY. UH, IT WAS A FISCAL YEAR, 2025, MID-YEAR REVIEW OUTLOOK, UH, AND FISCAL YEAR 26TH, UH, BUDGET REVIEW, MUCH LIKE WE SAW TODAY, RIGHT? ENJOYABLE. AND, UH, THIS WAS A LITTLE MORE DRAMATIC WITH THE, UH, MM-HMM . THANK YOU FOR THAT. WORK BEHIND THE SCENES. THAT HELPS ALL OF US. AND THEN ANTO, I BELIEVE YOU HAVE ANOTHER ANNOUNCEMENT. YEAH, I WANNA TURN IT OVER TO STEPHANIE. SHE HAS ANNOUNCED TO MAKE A, A NEW MANAGER HAS JOINED OUR RANKS. STEPHANIE, CAN YOU DO THE INTRODUCTION? I AM VERY EXCITED TO INTRODUCE OUR NEW DIRECTOR OF INFORMATION SERVICES. AS YOU KNOW, UM, WE HAVE BEEN WITHOUT ONE FOR NEARLY A YEAR. SO WE HAVE, UH, ALVIN LAMB [01:45:01] WHO COMES FROM THE CITY OF DOWNEY, AND I'LL LET HIM SAY QUICK. HELLO. IF, UH, HE IS WILLING , ALVIN, YOU HAVE TO BE WILLING. SO HAVE BOARD COMMISSIONERS. UH, AGAIN, MY NAME IS ALVIN LAMB. UH, I, I CAME FROM THE CITY OF DOWNEY. I'VE BEEN THERE FOR, UH, 20 YEARS, UH, AS THE IT MANAGERS FORWARD TO WORKING FOR CITY OF LONG BEACH UTILITY. WELCOME. WE'RE DELIGHTED TO HAVE YOU. HOPEFULLY NO MORE CYBER SECURITIES ARE IN THE FUTURE. ISSUES OR CRISES OBJECTIVE. WE'LL TAKE CARE OF THAT. SO WATCH OUT FOR US. WELCOME. THANK YOU. THANK YOU. THAT'S ALL I HAVE. PARDON? THAT WAS ALL THE ANNOUNCEMENTS I HAVE. OKAY. THANK YOU. OKAY. UM, THIS TIME THE MEETING IS ADJOURNED. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.