* 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. [CALL TO ORDER] [00:00:06] UH, GOOD MORNING. WELCOME. UH, IT'S THURSDAY, DECEMBER 18TH. WELCOME TO THE PUBLIC UTILITIES COMMISSION. THIS MEETING'S CALLED ORDER, [PLEDGE OF ALLEGIANCE] UH, WOULD LIKE TO CALL ON DANIEL GUTIERREZ TO LEAD THE PLEDGE. [ROLL CALL] THANK YOU. UH, DINA, MAY WE HAVE ROLL CALL, PLEASE? PRESIDENT SCOTT. SECRETARY PARKIN. COMMISSIONER MCGUIRE HERE, COMMISSIONER AUSTIN AND VICE PRESIDENT CORDERO IS [CONSENT CALENDAR] ABSENT TODAY. WE HAVE A QUORUM. THANK YOU FOR THE RECORD. VICE PRESIDENT CORDERO IS EXCUSED FROM TODAY'S BOARD MEETING. ARE THERE ANY OBJECTIONS FROM THE BOARD? SEEING NO OBJECTIONS? WE'LL NOW MOVE ON TO THE CONSENT CALENDAR. UH, MAY I PLEASE HAVE A MOTION TO APPROVE THE CONSENT CALENDAR? SO MOVED. [3. 25-57237 Recommendation to adopt Request for Proposal for the LB-5 Rehabilitation Project (EO-3772), award a contract to DRP Engineering Inc., in an amount not to exceed $314,701 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. ] THANK YOU IN A SECOND. THANK YOU. UH, ANY PUBLIC COMMENTS? THANK YOU. ALL THOSE IN FAVOR SAY AYE. AYE. AYE. ANY OPPOSED? THANK YOU. UH, ITEM NUMBER THREE OF THE REGULAR AGENDA ADOPT REQUEST FOR PROPOSAL FOR THE LB FIVE REHABILITATION PROJECT EO 3 7 7 2 AWARD OF CONTRACTED DRP ENGINEERING INCORPORATED. IN ORDER TO HEAR THE PRESENTATION, MAY I PLEASE HAVE A MOTION? THANK YOU. AND A SECOND. SECOND. THANK YOU. UH, I'D LIKE TO CALL ON PETER NGUYEN. WELCOME, UH, GOOD MORNING, PRESIDENT SCOTT AND BOARD OF UTILITIES COMMISSIONERS. UH, MY NAME IS PETER NGUYEN, UH, CIVIL ENGINEERING ASSISTANCE WITH THE WATER AND SEWER INFRASTRUCTURE, UH, GROUP. AND TODAY WILL ACTUALLY BE MY FIRST TIME PRESENTING, UH, TO THE BOARD. SO, JUST WANTED TO GIVE A SHORT INTRODUCTION, UH, OF MYSELF. UH, DID MY UNDERGRAD IN ELECTRICAL ENGINEERING, UH, AT CAL POLY SAN LUIS OBISPO IN 2022. UH, THEN DECIDED TO GO BACK FOR MY MASTERS IN CIVIL ENGINEERING AT CAL STATE FULLERTON AND FINISH UP THAT PROGRAM IN 2025. UM, I'VE BEEN WITH THE UTILITIES DEPARTMENT FOR, UH, ALMOST THREE YEARS NOW. UM, STARTED AS AN ENGINEERING INTERN AND 2023, UH, THEN BECAME, UH, NON-CAREER SHORTLY AFTER. UM, THEN STARTED FULL-TIME IN MAY OF 2025 OF THIS YEAR. SO TODAY I'LL BE PRESENTING ON THE LP FIVE REHABILITATION PROJECT AND SEEKING APPROVAL FOR WORD ITEM NUMBER THREE. SO, STARTING OFF WITH THE PROJECT BACKGROUND, UM, LP FIVE IS LOCATED NEAR INTERSECTION OF ATLANTIC POLICE AND EAST 70 EAST 70TH STREET. AS SHOWN IN THE PHOTO ON THE RIGHTS. UM, LB FIVE IS MADE UP OF TWO SEPARATE VAULTS. THE FIRST VAULT BEING THE FLOW AND PRESSURE REGULATING VALVE VAULTS, AND THE SECOND VAULT BEING THE FLOW METERING VAULTS. UM, LB FIVE WAS CONSTRUCTED IN THE 1950S, AND IT'S ONE OF THE 11, UM, IMPORTED WATER CONNECTIONS THAT WE CURRENTLY HAVE WITH METROPOLITAN WATER DISTRICT. UM, LB FIVE HAS BEEN OUT OF SERVICE SINCE 2011. UM, PURPOSE OF THIS PROJECT IS TO REPLACE AGING, MECHANICAL, ELECTRICAL, AND STRUCTURAL SYSTEMS. UH, IMPROVED SYSTEM RELIABILITY AND FLEXIBILITY, AND IN INTEGRATES REMOTE MONITORING AND CONTROL CAPABILITIES. HERE ARE JUST SOME PHOTOS THAT SHOW THE EXISTING CONDITIONS OF THE SITES. UM, AS YOU CAN SEE FROM THE FIRST PHOTO HERE, UM, SHOWS, UH, THE TWO EXISTING 16 INCH CLAY VALVES THAT ARE TO BE REPLACED. UH, THESE CLAY VALVES ARE, UH, ABOUT 70 PLUS YEARS OLD. A PHOTO ON THE BOTTOM SHOWS A CLOSEUP OF THE, UH, BUTTERFLY VALVE, UH, THAT'S ALSO 16 INCHES. UM, A TOTAL OF FOUR BUTTERFLY VALVES ARE TO BE REPLACED FOR THIS PROJECT. UH, NEXT PHOTO SHOWS THE EXISTING VENTI, UH, FLOW METER THAT'S LOCATED IN THE FLOW METERING VAULTS. UH, THAT'S ALSO TO BE, BE REPLACED. UH, NEXT PHOTO SHOWS THE, UH, CURRENT EXISTING, UH, SITE ACCESS ENTRY POINTS FOR THE VAULTS. UM, PART OF THE SCOPE FOR THIS PROJECT WILL BE TO INSTALL A NEW ACCESS HATCH, UM, FOR THE VAULTS, JUST FOR IMPROVED, UM, ACCESS AND MAINTENANCE. UH, NEXT PHOTO SHOWS THE FLOW TOTALIZER THAT'S LOCATED, UH, OUTSIDE, IN AN OUTSIDE ENCLOSURE. UM, AS YOU CAN SEE FROM THE PO CONDITIONS, UM, WE'LL BE REPLACING, UH, THIS FOR THIS PROJECT. THEN FINALLY, UM, THIS LAST PHOTO SHOWS THE, UM, OUTSIDE CONDITIONS OF THE VAULTS. UH, AS MENTIONED, WE'LL [00:05:01] BE INSTALLING A NEW ACCESS HATCH JUST FOR IMPROVED, UH, ENTRY AND MAINTENANCE. ALRIGHT, JUST TO RECAP FOR, UH, THE OBJECTIVES OF THE PROJECT, UM, WE'LL BE REPLACING TWO 16 INCH, UH, CLAY VALVES AND FOUR 16 INCH BUTTERFLY VALVES. WE'LL BE ADDING REMOTE CONTROL CAPABILITIES THROUGH SCADA AND PLC UPGRADES, AND WE'LL BE UPGRADING THE EXISTING POWER SERVICE. UH, WE'LL BE INSTALLING ACCESS HATCH FOR IMPROVED VAULT ENTRY. UM, WE'LL BE INSTALLING TWO ABOVE GROUNDS SAMPLING STATIONS AND INSTALLING NEW SWITCHGEAR CONTROL PANELS AND FLOW METER. SO ON OCTOBER 16TH, 2025, A REQUEST FOR A PROPOSAL WAS DISTRIBUTED TO 21 CONSULTANTS IN THE PUMP STATION IMPROVEMENTS AND MISCELLANEOUS ENGINEERING SUPPORT SERVICES. CATEGORIES OF THE ON-CALL PROFESSIONAL ENGINEERING BENCH ON NOVEMBER 12TH, 2025, FIVE PROPOSALS WERE RECEIVED, EVALUATED AND ANALYZED STAFF RECOMMEND DRP ENGINEERING INC. BASED ON THEIR EXPERIENCE ON SIMILAR PROJECTS, PROJECT TEAM AND REGIONAL REASONABLENESS OF FEES. STAFF RECOMMEND THAT THE BOARD ADOPT REQUEST FOR PROPOSAL FOR THE LB FIVE REHABILITATION PROJECT AWARD A CONTRACT TO DRP ENGINEERING INC IN AN AMOUNT NOT TO EXCEED $214,701 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. THAT CONCLUDES MY PRESENTATION. I'LL BE HAPPY TO TAKE ANY QUESTIONS. THANK YOU, PETER. THAT WAS VERY GOOD. UH, ANY PUBLIC COMMENTS AND ANY COMMISSIONER COMMENTS? JUST A QUICK QUESTION. UM, THE LB FIVE, WHAT, WHAT IS THE SCOPE IN TERMS OF, UM, HOUSEHOLDS AND BUSINESSES THAT, THAT, THAT MAY IMPACT PROJECT? LEMME GO BACK. UM, SO THERE, THERE WILL BE NO IMPACTS TO LIKE THE NEARBY, UH, RESIDENTS AND HOMES IF, UH, THAT'S WHAT YOU'RE ASKING. UM, RIGHT, BUT IT, IT'S AN UPGRADE. AND SO I'M JUST CURIOUS TO KNOW THE, THE SCOPE OF, OF, UH, WHEN, WHEN I SAY IMPACT, NOT NECESSARILY IMPACT ON THE, YOU KNOW, DOWNTURN OF A PROJECT, BUT JUST THE OVERALL DELIVERABILITY AND SERVICEABILITY. OKAY. YEAH. YEAH. SO THE, THE VAULT STRUCTURE ITSELF IS IN GOOD CONDITION. WE'RE JUST REPLACING, UM, MOST OF THE ELECTRICAL EQUIPMENT AND CONTROLS IN THE VAULT STRUCTURE ITSELF. PETER, LET ME, LET ME HELP AND THOMAS, COME. COMMISSIONER AUSTIN, ARE YOU, ARE YOU ASKING THE SERVICE PROVIDED BY THAT, UH, STRUCTURE AND WHO IT BENEFITS AND HOW WILL THIS INTERRUPTION AFFECT IT? THAT'S EXCELLENT INTERPRETATION. , I HAVE TO WRITE IT DOWN. HOLD ON. COMMISSIONER AUSTIN SAID I HAD EXCELLENT INTERPRETATION. THOMAS, CAN YOU GO AHEAD? I COULD TAKE A STAB AT THIS QUESTION. UM, SO IT'S A CONNECTION TO METROPOLITAN WATER DISTRICT, RIGHT? SO IT ACTUALLY ENTERS OUR DISTRIBUTION SYSTEM DIRECTLY AS FAR AS AFFECTING THE, THE COMMUNITY, YOU KNOW, AND, AND, AND THE ACTUAL IMPACT OF IT. IT'S, IT'S, IT GOES DIRECTLY INTO OUR DISTRIBUTION SYSTEM. SO IT ISN'T A SPECIFIC ZONE THAT IT'S IMPACTING, UH, BUT I THINK HE WAS TRYING TO ANSWER IF, IF THE CONSTRUCTION ITSELF WAS IMPACTED, THE RESIDENT. I'M GONNA ASK TY TO ADD TO THAT BECAUSE THE METROPOLITAN CONNECTIONS ARE AT DIFFERENT POINTS IN THE CITY TERRITORY, BUT DEPENDING ON THEIR LOCATION, THEY GET USED IN DIFFERENT WAYS WITH OUR WATER SYSTEM TRANSMISSION AND DISTRIBUTION. SO CAN YOU CLARIFY HOW LB FIVE INTERACTS WITH US? SO AS OPPOSED TO SOME OF THE OTHER CONNECTIONS. SO WE HAVE, WE HAVE EIGHT METROPOLITAN CONNECTIONS, UM, WHERE WE CAN DRAW WATER. THE TWO PRIMARY CONNECTIONS THAT WE DRAW WATER FROM IS LONG BEACH FOUR AND LONG, WHICH IS IN DOMINGUEZ HILLS AT JOHNSON RESERVOIR AND LONG BEACH EIGHT, WHICH IS RIGHT OUT HERE ON CHERRY AND [4. 25-57238 Recommendation to adopt Specifications No. WD-13-23 for the Water Main Bridge Crossings Repair Project Sites No. 2, No. 3, and No. 28 (MO-3831), award a contract to Capital Industrial Coatings, LLC, in the amount not to exceed $2,159,263.50, and authorize the General Manager to execute all documents necessary to enter into the contract, including any necessary subsequent amendments.       Suggested Action: Approve recommendation. ] WARDLOW. NOW WE HAVE ADDITIONAL CONNECTIONS THAT WE HAVE ON STANDBY LONG BEACH FIVE IS ONE OF THOSE STANDBY CONNECTIONS SO THAT IN THE EVENT THAT WE ARE UNABLE TO DELIVER WATER TO THE NORTH SIDE THROUGH OUR TRANSMISSION SYSTEMS OUT OF THE TREATMENT PLANT IN ALAMI RESERVOIR OR FROM JOHNSON RESERVOIR, WE CAN OPEN LONG BEACH FIVE AS A BACKUP SERVICE POINT TO THAT PART OF THE CITY. SO THIS, THIS PARTICULAR MET CONNECTION SERVES THE NORTH SIDE OF LONG BEACH, AND SO, [5. 25-57239 Recommendation to adopt Request for Proprosal for Construction Management and Inspection Services for the Water Main Bridge Crossings Repair Project Sites No. 2, No. 3, and No. 28 (MO-3831) and award contract Harper & Associates Engineering, Inc. for a total amount not to exceed $249,575, 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. ] UM, NORTH OF BIXBY HILL, EAST OF THE FREEWAY, AND THEN TO THE EDGE OF THE CITY BOUNDARY ON THE [00:10:01] EAST SIDE. SO THIS IS THE SERVICE AREA THAT LONG BEACH FIVE WOULD POTENTIALLY SERVE IF WE OPEN IT. BUT WE DON'T OPEN LONG BEACH FIVE REGULARLY. WE ONLY OPEN LONG BEACH FIVE WHEN WE NEED TO. SO THIS IS MORE OF A RESILIENCY TO MAKE SURE THAT WE CAN REACT TO AN EMERGENCY IF WE NEEDED TO. GREAT. UH, ANY OTHER COMMISSIONER COMMENTS? OKAY, WE'VE GOT A MOTION AND A SECOND TO ADOPT THE RFP. UH, ALL THOSE IN FAVOR SAY AYE. AYE. AYE. ANY OPPOSED? AND THE MOTION PASSES. THANK YOU. MOVING ON, WE'VE GOT ITEMS NUMBER FOUR AND FIVE, UH, WILL BE HEARD TOGETHER WITH ONE PRESENTATION. SO ITEM NUMBER FOUR, ADOPT SPECIFICATION NUMBER WD DASH 13 DASH 23. FOR THE WATER MAIN BRIDGE CROSSINGS REPAIR PROJECT SITES NUMBER TWO, NUMBER THREE, NUMBER 28, UH, MO DASH 3 8 3 1 AWARD, A CONTRACT, CAPITAL INDUSTRIAL COATINGS LLC. AND THEN NUMBER FIVE, ADOPT REQUEST FOR PROPOSAL FOR CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES. FOR THE WATER MAIN BRIDGE CROSSINGS REPAIR PROJECT CITES NUMBER 2 3 28 MO 3 8 1 AWARD OF CONTRACT TO HARPER AND ASSOCIATES ENGINEERING INC. AND IN ORDER TO HEAR THE PRESENTATION, I MAY HAVE A MOTION. SO MOVED. AND A SECOND. THANK, UH, I'D LIKE TO CALL ON THOMAS CASSIDY FOR THE PRESENTATION. MORNING COMMISSIONERS, MORNING COLLEAGUES AND MEMBERS OF THE PUBLIC. I'M HERE TODAY THIS MORNING TO PRESENT TO YOU THE WATER MAIN BRIDGE CROSSING REPAIR PROJECT OR SITES NUMBERS 2, 2, 3, AND 28. LITTLE BACKGROUND INTO, EXCUSE ME, THE BRIDGE CROSSING PROGRAM. UH, WE HAVE 59 BRIDGE CROSS BRIDGE SITES ACROSS CITY OF LONG BEACH, UH, CROSSING OVER FREEWAYS, UH, BLOOD CONTROL CHANNELS. AND, UM, AT EACH SITE WE HAVE A TIL PIPELINE THAT IS STEEL OR DUCT IRON, UH, CROSSING EACH SITE. UM, EACH PIPELINE IS COATED WITH PAINT OR CEMENT MORTAR OR CORROSION PROTECTION. UM, SIZE IS RANGING FROM EIGHT INCHES TO 42 INCHES IN DIAMETER. AND IN OUR BRIDGE CROSSING MASTER PLAN THAT WE CONDUCTED A FEW YEARS AGO, UH, WE IDENTIFIED A NUMBER OF SITES THAT NEED TO HAVE SOME CODING REMEDIATION TO PROTECT AGAINST CORROSION AND POTENTIAL FAILURE IN THE FUTURE. SO WITH THIS PROJECT, WE HAVE THREE SITES THAT ARE IDENTIFIED FOR REPAIR. UM, ALL OF OUR BRIDGE CROSSING SITES ARE SHOWN HERE WITH THE RED DOTS, BUT THE THREE IN PARTICULAR THAT WE'RE WORKING ON ARE IDENTIFIED WITH GREEN STARS. HERE TAKE A LOOK. SO HERE ARE EACH OF OUR SITES NUMBERS TWO, THREE, AND 28 AS IDED IN OUR MASTER PLAN AND SHOWN IN THE PROJECT TITLE. UH, SITE NUMBER TWO IS CROSSING THE LOS ANGELES RIVER OVER ANAHEIM STREET IS A 20 INCH PAINTED STEEL PIPELINE, UH, BUILT IN 1952 WITH A LOT OF, UH, CORROSION FROM COATING DELAMINATION. UH, SITE NUMBER THREE IS CROSSING THE LOS ANGELES RIVER OVER LONG BEACH BOULEVARD, ALSO A 20 INCH PAINTED STEEL PIPELINE BUILT IN 1947 SPANNING 1100 FEET. AND SITE NUMBER 28 CROSSES THE LOS CERRITOS CHANNEL OVER APPIAN WAY, A 12 INCH CEMENT MORTAR COATED STEEL PIPELINE BUILT IN 1961 SPANNING OVER 400 FEET. UH, SO AT EACH OF THESE SITES, THE SCOPE OF WORK THAT IS ENTAILING TO REPAIR THE COATING, THEY'RE GONNA BE SETTING UP SCAFFOLDING OVER THE EDGE OF THE BRIDGE, UH, CONTAINING THE WORK SITE, UH, WITH A VACUUM. UH, THEY'RE CALLING IT A SHRINK WRAP METHOD, UM, BECAUSE EACH OF THE SITES WE ARE WORKING AT HAS, UH, HIGH LEAD PAINT CONCENTRATIONS FROM BACK IN THE DAY. SO THERE IS A LOT OF, UH, HAZARDOUS MATERIAL ABATEMENT THAT IS A SCOPE OF THIS PROJECT. SO PART OF THAT IS GONNA BE THE ABRASIVE SANDBLAST CLEANING AND HANDLING OF MATERIAL DISPOSAL IN ACCORDANCE WITH EPA REGULATIONS. AND THEN FINALLY, OF COURSE, WE ARE GOING TO PROPERLY, UH, ADDRESS [00:15:01] ANY AREAS OF CORROSION AND PUT THE PIPELINE. CONSTRUCTION DURATION IS SLATED FOR 180 CALENDAR DAYS. UH, TENTATIVE START IS IN MAY OF 2026. UH, LOOKING TO FINISH UP BY RAINY SEASON, UH, IN NOVEMBER, 2026. UH, WITH THAT, UH, RECOMMENDATION FOR BOARD IS TO ADOPT SPECIFICATIONS NUMBERS WD 1323, WHERE WATER MAIN BRIDGE CROSSING REPAIR PROJECT SITES 2 3 28 MO 3 8 3 1 TO AWARD A CONTRACT TO CAPITAL INDUSTRIAL COATINGS LLC, THE AMOUNT NOT TO EXCEED $2,159,263 AND 50 CENTS, AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE ALL DOCUMENTS NECESSARY TO ENTER INTO A CONTRACT, INCLUDING ANY NECESSARY SUBSEQUENT AMENDMENTS, AS WELL AS THE RECOMMENDATION TO ADOPT A REQUEST FOR PROPOSAL FOR CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES FOR THE WATER MAIN BRIDGE CROSSING PROJECT AND AWARD HARPER AND ASSOCIATES ENGINEERING FOR A TOTAL AMOUNT NOT TO EXCEED $249,000 575 FOR A PERIOD OF TWO YEARS, AND AUTHORIZED THE GENERAL MANAGER TO EXECUTE ALL DOCUMENTS NECESSARY TO ENTER INTO A CONTRACT, INCLUDING ANY NECESSARY SUBSEQUENT AMENDMENTS. AND WITH THAT, I'LL OPEN UP TO ANY QUESTIONS YOU MIGHT HAVE. THANK YOU, THOMAS. UH, DO WE HAVE ANY PUBLIC COMMENTS? ANY COMMISSIONER COMMENTS? YES, SIR. THANK, THANK YOU FOR THE PRESENTATION. CAN, CAN YOU TALK TO ME A LITTLE BIT ABOUT THE MASTER PLAN? HOW, HOW DID YOU DETERMINE THESE THREE VERSUS THE OTHER 59 AND, AND WHERE ARE WE AND WE, THE, THE UTILITIES IN LOOKING AT ALL OF THESE ONES, ARE THESE THE WORST OF THE WORST? ARE THESE IN THE MIDDLE? HOW DO WE, HOW DO YOU SELECT THEM? SURE. SO AT EACH SITE, WE HAD A CONSULTANT DO A FULL INSPECTION OF EVERY PIPELINE, UH, AND LOOK AT THE CONDITION THAT IT CURRENTLY EXISTS IN, AND, UH, RANK THE IMMEDIACY AT WHICH WE WOULD NEED TO, YOU KNOW, PROVIDE ANY ATTENTION OR MAINTENANCE TO EACH SITE. SO THESE THREE SELECTED SITES IN PARTICULAR HAPPEN TO HAVE, UH, MORE PROGRESSED CORROSION. UM, YOU KNOW, THERE ARE RUSTED PIPELINES WITH A LITTLE BIT, UH, HITTING IN THEM. SO, UH, THESE ARE SITES THAT WE WOULD WANT TO ADDRESS MORE IMMEDIATELY. OKAY. JUST FOLLOW UP. SO THERE'S AN ANNUAL INSPECTION OF ALL OF THE 59 SITES. IT IS NOT AN ANNUAL INSPECTION. UH, IT'S, THE TIMELINE IS LIKE FIVE TO SEVEN YEARS, I BELIEVE. UM, SO, UH, MANY OF THE SITES ARE RECOMMENDED FOR FOLLOW UP INSPECTION. SO, SO BE, WILL THERE BE ANOTHER BATCH OF THREE OR FOUR OF THESE NEXT YEAR, OR DO YOU WAIT THE FIVE, THE INSPECTION KIND OF DETERMINES THAT EVERY FIVE YEARS YOU KIND OF LOOK AT THOSE AND SAY, WE NEED TO EITHER REPLACE IT OR RELINE IT. MM-HMM . YES. UH, PER RECOMMENDATION OF THE ENGINEERS THAT TOGETHER THE, UH, MASTER PLAN FOR BRIDGE CROSSING AND, UH, YOU KNOW, TAKING A LOOK AT PREVIOUS MASTER PLANS, WE'LL MOVE FORWARD INTO THE NEXT MASTER PLAN. THANK YOU. ANY OTHER COMMISSIONER COMMENTS? YES, SIR. UM, CAN'T REALLY COMMENT ON THAT. NO. UM, I THINK, I THINK COMMISSIONER AUSTIN MAINTENANCE IS OCCURRING ON AN ANNUAL BASIS. THIS A REPLACEMENT. THIS IS NOT A PIPELINE REPLACEMENT, BUT MORE OF A PIPELINE RECODING. HOW OFTEN ARE WE, UM, THAT IS JUST WHEN RECOMMENDED, RIGHT? SO THE, THE COATING HAPPENS AS NEEDED BECAUSE THE COATING ITSELF IS INTEGRAL, INTEGRAL ENOUGH TO THE PIPELINE MATERIAL TO PROTECT IT FROM CORROSION. IF IT'S SOLID AND MAINTAINS ITSELF, THERE IS GONNA BE NO CORROSION OF THE PIPELINE. IT'S WHEN CRACKS APPEAR OR SOMETHING ELSE MATERIALLY IS BEGINNING TO CHANGE IN THE COATING THAT EXPOSES THE STEEL OF THE PIPELINE [6. 25-57240 Recommendation to adopt Request for Proposal for Engineering Design Services for the Rancho Los Alamitos Transmission Main Improvement Project (MC-5264), award a contract to AtkinsRéalis USA Inc. in the amount not to exceed $252,040 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. ] OR THE IRON OF THE PIPELINE AND THEN EXPOSES IT TO CORROSION AND THEN WE CAN SUFFER A DETERIORATION. SO THE PIPELINE ITSELF WON'T NECESSARILY BE REPLACED SO LONG AS THE INTEGRITY OF THE COATING IS MAINTAINED. NOW, MAINTENANCE PROCEDURES WILL GO THROUGH REGULAR MAINTENANCE PROCEDURES AND INSPECTION ACROSS THE ENTIRE DISTRIBUTION [00:20:01] SYSTEM ON REGULAR CYCLES. AND SO, JUDGING BY COMMISSIONER PARKINSON'S, UH, QUESTIONS AND YOUR QUESTIONS INTO THE BENEFIT OF WHAT THE COMMITTEE STRUCTURE IS YIELDING, WE SHOULD PROBABLY BRING FORWARD TO YOU SOME OF THE OVERALL MASTER PLANNING EFFORTS THAT ENGINEERING DOES IN ORDER TO HAVE REGULAR CYCLES OF INVESTIGATION, INSPECTION, AND THEN PLANNING FOR IMPROVEMENTS ACROSS ALL ASPECTS OF THE DISTRIBUTION SYSTEM. WE JUST HEARD BRIEFLY ABOUT A DISCUSSION OF VALVES. WE HAVE THE BRIDGE CROSSINGS, COATINGS, WE HAVE PIPELINES OF DIFFERENT DIAMETERS, PIPELINES OF DIFFERENT, UM, CONSTRUCTION MATERIALS. ALL OF THAT GETS MANAGED IN A PLANNING CYCLE. AND YOUR QUESTIONS ARE VERY VALID AND APPROPRIATE AS TO, WELL, EXACTLY HOW DO WE DO THAT TO HAVE SOME SENSE OF SYSTEM INTEGRITY AS WE'RE DELIVERING THE WATER. THANK YOU FOR THAT EXPLANATION. THANK YOU. UH, ANY OTHER COMMISSIONER COMMENTS? ALRIGHT, GREAT. UH, WE HAVE A MOTION AND A SECOND TO APPROVE ITEMS NUMBER FOUR AND FIVE. UH, ALL THOSE IN FAVOR, PLEASE SAY AYE. AYE. ANY OPPOSED? AND THOSE TWO MOTIONS PASS. THANK YOU. THANK YOU, THOMAS. SO ITEM NUMBER SIX, ADOPT A REQUEST FOR PROPOSAL FOR ENGINEERING DESIGN SERVICES FOR THE RANCHO LOS ALAMITOS TRANSMISSION MAIN IMPROVEMENT PROJECT MC DASH 5 2 6 4 AWARD OF CONTRACT TO ATKINS USA INCORPORATED. UH, IN ORDER TO HEAR THE PRESENTATION, MAY I PLEASE HAVE A MOTION? SO MOVE. THANK YOU. AND A SECOND. SECOND. THANK YOU. SO YOU'RE CALLING ON LELA STEVENS. GOOD MORNING. HELLO, UH, MORNING EVERYONE. GOOD MORNING COMMISSIONERS. UH, MY NAME IS LELA STEVENS, UM, A CIVIL ENGINEER UNDER THE PIPELINE INFRASTRUCTURE GROUP. UH, I'M HERE TO PRESENT ON TODAY'S AGENDA NUMBER SIX, UH, FOR THE RANCHO LOS ALAMITOS TRANSMISSION MAIN IMPROVEMENT PROJECT. SO IN FEBRUARY OF 2025, THIS YEAR, AN UNFORTUNATE EMERGENCY WATER MAIN BREAK THAT OCCURRED ON THE EXISTING 24 INCH STEEL CYLINDER CONCRETE TRANSMISSION MAIN WITHIN THE BIXIE HILLS NEIGHBORHOOD. AND THE APPROXIMATE LOCATION OF THE BREAK WAS RIGHT HERE. UM, SO THE PIPELINE IS LOCATED ALONG THE HILLSIDE AS HIGHLIGHT, FOLLOWING ALONG THE GREEN HIGHLIGHT, OH, SORRY, RED HIGHLIGHTED ALIGNMENT AND NARROW EASEMENT BEHIND THE HOUSES IN THE BIXIE HILL COMMUNITY. AND THE TRANSMISSION MAIN WAS INSTALLED BY A RAIL PIPELINE CONSTRUCTION COMPANY IN 1966. IN RESPONSE TO THE EMERGENCY BREAK, WE HAD A HDR CONSULTING FIRM TO PERFORM PIPELINE FAILURE ANALYSIS. IN APRIL, 2025, THERE WERE INDICATION OF ACTIVE CORROSION WITH NOTICEABLE, UM, WALL, WALL LOSSES HITTING AND RUST STAINS IN VARIOUS AREA OF THE FAILED PIPE SEGMENT. THERE IS NO EVIDENCE OF ANY DESIGN DEFICIENCIES. AND ADDITIONALLY, WITH THE RECOMMENDATION FROM THE REPORT THAT, UH, INCLUDES THE IMPLEMENTATION OF CATHARTIC PROTECTION, UH, OR THE PIPELINE ABANDONMENT OR REPLACEMENT OF APPROXIMATELY, UH, OF THE, IN THE, OF THE TRANSMISSION THAT WAS SHOWING THE PREVIOUS SLIDE. AND THIS IS A IMAGE SHOWING THE ACTUAL REPAIR SITE HAPPENED WHERE THE FAILURE OCCURRED. AS YOU CAN SEE, UH, THERE IS SOME RE RESIDENTIAL AREA THAT'S VERY NOTICEABLE ON BOTH SIDE OF THE IMAGE, AND THE EXISTING PIPE IS FAIRLY DEEP, APPROXIMATELY 15 FEET IN DEPTH. SO WITH THIS PROJECT, UH, THE DESIGN CONSULTANT WILL PERFORM A VALIDATION LEVEL OF HYDRAULIC ASSESSMENT AND EVALUATE THE FEASIBILITY OF THE PROPOSED ABANDONMENT AND A COMPLETE A, UH, COMPLETE A PROVIDE, PREPARE A COMPLETE WATER MAIN ABANDONMENT CONSTRUCTION PACKAGE. ADDITIONALLY, THEY WILL ALSO CONDUCT A DETAILED ALTERNATIVE ANALYSIS, INCLUDING THE, UH, LOCATION, SIZE, COST BENEFIT, BENEFIT EVALUATION, OR ANY PERMITTING, UH, REQUIREMENTS FOR THE PROPOSED REALIGNMENT OPTION IF THAT IS DEEMED NECESSARY. AND THE PROPOSED ABANDONMENT IS SHOWN HERE, HIGHLIGHTING RED. IT'S APPROXIMATELY 20, UH, 20 2050 LINEAR FEET OF THE TRANSMISSION, 24 INCH TRANSMISSION TRANSMISSION. SO WITH THIS ON OCTOBER 13TH, UH, WE, WE, WE SENT OUT A REQUEST FOR [00:25:01] PROPOSAL THAT WAS TO THE ON-CALL BENCH FOR THE PROFESSIONAL ENGINEERING SERVICES UNDER PIPELINE IMPROVEMENT AND PIPELINE CONDITION ASSESSMENT PROGRAMS. THERE ARE, THERE, THERE ARE 21 QUALIFIED CONSULTANTS UNDER THE CATEGORY, AND WE RECEIVED SIX PROPOSAL AND KIN REALIS, USA INC WAS THE RECOMMENDED CONSULTANT BASED ON STAFF'S REVIEW AND EVALUATION OF THE PROPOSALS. WITH THIS INFORMATION, WE REQUEST THE BOARD TO ADOPT THE REQUEST FOR PROPOSAL FOR EMERGENCY, SORRY FOR ENGINEERING DESIGN SERVICES, FOR THE RE REHAB, FOR THE RENTAL LOSS ALAMITOS TRANSMISSION MAIN IMPROVEMENT PROJECT AND AWARD CONTRACT TO AKIN REALS USA INC IN THE AMOUNT NOT TO EXCEED $252,040 FOR A PERIOD OF TWO YEARS, AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE ALL DOCUMENTS NECESSARY TO ENTER THE CONTRACT, INCLUDING ANY NECESSARY SUBSEQUENT AMENDMENT. AND WITH THIS INFORMATION, I'LL BE HAPPY TO ANSWER ANY OF YOUR QUESTIONS. THANK YOU, LELA. UH, I WANNA COMPLIMENT YOU AND THOMAS AND PETER. UH, ALL THREE OF YOU SPOKE DIRECTLY IN THE MICROPHONE. WE COULD HEAR YOU. IT WAS LOUD, IT WAS CLEAR. AWESOME. GOOD JOB. UH, IF, IF YOU WERE COACHED OR ADVISED COMPLIMENTS TO, UH, WHOEVER THAT WAS AS WELL. BUT THANK YOU. UH, DO WE HAVE ANY PUBLIC COMMENTS AND ANY COMMISSIONER COMMENTS, SIR? LEILA, GREAT JOB. THANK YOU. UM, IS THE CURRENT PIPELINE THAT THEY'RE STUDYING TO POSSIBLY ABANDON, IS THAT CURRENTLY SHUT DOWN OR IS IT CURRENTLY ACTIVE? SO RIGHT NOW IT'S CURRENTLY SHUT DOWN, BUT THERE IS AN INDICATION OF LEAK [7. 25-57241 Recommendation to receive and file the Long Beach Public Utilities Department’s protest to Application 25-09-014, which was submitted by the Southern California Gas Company and San Diego Gas & Electric Company to the California Public Utilities Commission for authority to revise natural gas rates and implement storage proposals effective January 1, 2027.       Suggested Action: Approve recommendation. ] BYTES. SO OUR SEWER OPS, SORRY, NOT OUR SEWER OPS, OUR OPERATIONAL TEAM HAS BEEN PERFORMING WEEKLY RESIDUAL CHECK AND FLUSHING BIWEEKLY. SO, SO DURING THIS TWO YEAR PERIOD WHILE THEY'RE DOING THE DESIGN, IT'S ANTICIPATED THAT THAT LINE WILL REMAIN OUT OF SERVICE. THE DESIGN OF THE ABANDONMENT PACKAGE IS WE FACE OUT FOR THIS PROJECT. THERE'S PHASE ONE OF THE PREPARING OF THE CONSTRUCTION PACKAGE FOR THE ABANDONMENT. AND FOR THAT PHASE ONE SCOPE IS SIX MONTHS, SO IT WON'T BE TWO YEAR. AND THE REMAINDER OF THE SCHEDULE IS MOSTLY ON THE STUDY OF THE, ON THE FEASIBILITY STUDY OF THE ALTERNATIVE ALIGNMENTS OF THIS MAIN TRANSMISSION MAY ABANDONMENT, IF THAT IS DEEMED NECESSARY, THAT IF ALTERNATE ALTERNATIVE HYPO LAMA IS NEEDED. OKAY, THANK YOU. ANY OTHER COMMENTS? OKAY, THANK YOU LEILA. UH, WE HAVE A MOTION AND A SECOND TO ADOPT THE RFP. UH, ALL THOSE IN FAVOR, PLEASE SAY AYE. AYE. ANY OPPOSED? THANK YOU. THE MOTION PASSES. THANK YOU, LEILA. ITEM NUMBER SEVEN, RECEIVE AND FILE LONG BEACH PUBLIC UTILITY DEPARTMENT'S PROTEST TO APPLICATION 25 DASH OH NINE 14, WHICH WAS SUBMITTED BY SOUTHERN CALIFORNIA GAS COMPANY AND SAN DIEGO GAS AND ELECTRIC COMPANY TO THE CALIFORNIA PUBLIC UTILITIES COMMISSION FOR AUTHORITY TO REVISE NATURAL GAS RATES AND IMPLEMENT STORAGE PROPOSALS EFFECTIVE JANUARY 1ST, 2027. UH, IN ORDER TO, UH, HEAR THE PRESENT PRESENTATION, MAY HAVE A MOTION TO RECEIVE AND FILE PLEASE. SO MOVED A SECOND. THANK YOU. UH, IT SAYS HERE DIANA TANG, BUT YOU'RE DEFINITELY NOT. DIANA TANG. , WELCOME. THANK YOU. NO, I AM NOT DIANA TANG. I, MY NAME'S TONY FOSTER AND I'M PLEASED TO PRESENT TO YOU THIS MORNING. SO SHALL WE BEGIN? GOOD MORNING COMMISSIONERS. TODAY'S ITEM, ASK THE BOARD TO RECEIVE AND FILE LONG BEACH'S UTILITIES PROTEST TO THE SOUTHERN CALIFORNIA GAS COMPANY AND SAN DIEGO GAS AND ELECTRIC COMPANY'S APPLICATION TO THE TRIENNIAL COST ALLOCATION PROCEEDING, OTHERWISE KNOWN AS THE TCAP. SO BEFORE WE GO ON THIS JOURNEY, LET'S DEFINE SOME TERMINOLOGY. OUR APPLICATION IS A FORMAL FILING. UM, WELL, SOCAL GAS'S APPLICATION IS A FORMAL FILING BY SOCAL GAS THAT INITIATES A PROCEEDING BY REQUESTING THE PUBLIC UTILITIES COMMISSION'S APPROVAL OR SPECIFIC ACTIONS SUCH AS RATE CHANGES OR POLICY DETERMINATIONS. AND OUR PROTEST IS A FORMAL WRITTEN FILING THAT OBJECTS IN WHOLE OR IN PART TO AN APPLICATION AND EXPLAINS THE FACTUAL AND LEGAL REASONS THE REQUESTED RELIEF SHOULD NOT BE GRANTED. I'LL DEFINE ON NEXT SLIDE, BUT GOING FORWARD, I'LL REFER TO THIS TCAP AS SOCAL GAS'S TCAP, EVEN THOUGH, UH, SOCAL OR SAN DIEGO GAS AND ELECTRIC WAS ALSO INVOLVED IN THAT APPLICATION. SO WHAT IS THE TCAP AND WHY DOES IT MATTER? TRIENNIAL [00:30:01] COST ALLOCATION PROCEEDING, AGAIN KNOWN AS TCAP, IS THE CALIFORNIA PUBLIC UTILITY COMMISSION'S PROCESS FOR, DESPITE DECIDING HOW SO-CAL GAS WILL RECOVER COSTS OF RUNNING ITS NATURAL GAS SYSTEM, WHICH INCLUDES TRANSMISSION, STORAGE, DISTRIBUTION, AND PUBLIC PURPOSE PROGRAMS. IT IS IMPORTANT TO NOTE THAT WE LONG BEACH UTILITIES DEPARTMENT ARE A SOCAL GAS CUSTOMER, AND IN THEIR EYES, NOTHING MORE. IF THEY INCREASE THEIR RATES, IT IMPACTS US. AND IN TURN, OUR RATE PAYERS, THESE DECISIONS DON'T LIVE IN THEORY, THEY FLOW DIRECTLY INTO THE RATES. LONG BEACH UTILITY PAYS UTILITY AS A WHOLESALE CUSTOMER AND ULTIMATELY WHAT OUR RESIDENTS AND BUSINESSES PAY ON THEIR BILLS. THE TCAP HAPPENS EVERY THREE YEARS AND ONCE ADOPTED, THE RATES ARE LOCKED IN, IN THIS CASE THROUGH 2029. THIS, THAT MAKES THIS PROCEEDING ONE OF THE MOST CONSEQUENTIAL REGULATORY FORUMS FOR PROTECTING AFFORDABILITY AND ENSURING COSTS ARE ASSIGNED FAIRLY AND TRANSPARENTLY THE TIMELINE FOR THE TCAP AND THE PROCEDURAL CONTEXT. SOCAL GAS FILED THEIR TCAP APPLICATION ON SEPTEMBER 30TH, 2025. LONG BEACH UTILITIES HAD JUST OVER FIVE WEEKS TO REVIEW HUNDREDS OF PAGES OF TESTIMONY AND FILE A PROTEST BY NOVEMBER 7TH. PROCEEDINGS WILL CONTINUE THROUGHOUT 2026, BUT THE OUTCOME WILL GOVERN, GOVERN RATES FROM JANUARY 1ST, 2027 THROUGH THE END OF 2029. IN OTHER WORDS, THIS IS NOT A SHORT-TERM ADJUSTMENT. THIS IS A MULTI-YEAR COMMITMENT WITH REAL FINANCIAL CONSEQUENCES FOR OUR CUSTOMERS. THAT'S WHY EARLY ACTIVE PARTICIPATION IS ESSENTIAL. SO SOCAL GAS AND LONG BEACH, DIFFERENT ROLES SHARED SYSTEM. LET ME SET THE STAGE ON LONG BEACH'S RELATIONSHIP WITH SOCAL GAS. SOCAL GAS IS THE NATION'S LARGEST INVESTOR OWNED NATURAL GAS UTILITY. IT SPANS FROM THE MEXICAN BORDER THROUGH THE CENTRAL COAST AND PARTS OF THE CENTRAL VALLEY. WE OWN THE PIPELINE AND INFRASTRUCTURE THROUGHOUT THIS TERRITORY, INCLUDING THE LARGEST NATURAL GAS STORAGE FACILITY IN CALIFORNIA, WHICH MOVES GAS IN TOTALITY. THIS MOVES GAS FROM THE CALIFORNIA BORDER TO OUR LOCAL RECEIPT POINTS RIGHT HERE IN LONG BEACH, AND IT ALSO OPERATES THE STORAGE SYSTEM. LONG BEACH UTILITIES, AS WE ALL KNOW, IS A PUBLICLY OWNED UTILITY, ONE OF THE LARGEST IN THE COUNTRY, BUT WE RELY ON SOCAL GAS FOR BACKBONE TRANSMISSION AND STORAGE TO SERVE OUR 154,000 ACCOUNTS. AND WE DO NOT CONTROL THIS INFRASTRUCTURE YET WE BEAR THE COST IMPACTS OF HOW IT'S PRICED. THAT STRUCTURAL REALITY IS WHY COST ALLOCATION FAIRNESS MATTERS SO DEEPLY FOR PUBLICLY OWNED UTILITIES LIKE LONG BEACH UTILITIES IN THIS TCAP PROCEEDING, SOCAL GAS IS CONSIDERING ALL OF ITS VERY LARGE INFRASTRUCTURE COMPONENTS ACROSS AN EXTREMELY LARGE SERVICE AREA. AND WHEN PROPOSING THESE NEW RATES IN CONTRAST, LONG BEACH UTILITIES IS PRIMARILY FOCUSED ON OUR RESIDENTIAL CUSTOMER BASE, WHICH AS WE KNOW, IS ABOUT 94% OF OUR TOTAL ACCOUNTS. AND OUR SERVICE AREA IS ROUGHLY NINE OR 55 SQUARE MILES. WHILE WE ARE THE SEVENTH LARGEST MUNICIPAL GAS UTILITY IN THE COUNTRY, WE SERVE, UH, ABOUT 154,000 CUSTOMER ACCOUNTS, WHICH IS QUITE SMALL COMPARED TO SOCAL GAS'S CUSTOMER ACCOUNTS. AS YOU CAN SEE, IT'S ABOUT 21 MILLION ACCOUNTS. SO THEY'RE COMPETING GOALS IN THIS PROCEEDING AS AN INVESTOR OWNED UTILITY. SOCAL GAS'S GOAL IS TO REMAIN FINANCIALLY PROFITABLE AS WELL AS BEING, UH, AND, AND PROVIDING SAFE AND RELIABLE SERVICES. SOGA SOCAL GAS IS PROPOSING TO INCREASE RATES TO MEET ITS GOALS, INCLUDING SEEKING HIGHER RATES, HIGHER REVISED COST ALLOCATION METHODOLOGIES, INCREASED BACKBONE TRANSMISSION SERVICES, AND NEW STORAGE PROPOSALS. LONG BEACH UTILITY'S GOAL IS FUNDAMENTALLY DIFFERENT, PROVIDE COMPETITIVE NATURAL GAS RATES AND PROTECT OUR RATE PAYERS FROM UNNECESSARILY AND DISPROPORTIONATE COST INCREASES. THESE GOALS ARE NOT INHERENTLY INCOMPATIBLE, BUT WITHOUT TRANSPARENCY AND DISCIPLINE, THE BURDEN CAN SHIFT UNFAIRLY TO WHOLESALE AND MUNICIPAL CUSTOMERS SUCH AS OURSELVES. OUR PROTEST IS ABOUT ENSURING BALANCE NOT BLOCKING PROGRESS. [00:35:03] SO WHY DO WE FILE THE PROTEST? EVEN THOUGH THE TCAP COVERS MULTIPLE SOCAL GAS COSTS, WE HAVE IDENTIFIED THESE FOUR COMPONENTS AS HAVING THE GREATEST IMPACT ON OUR COSTS AND OPERATIONAL NEEDS LISTED HERE, WHOLESALE RATE, DESIGN AND COST ALLOCATION, STORAGE ALLOCATION AND BALANCING RIGHTS, BACKBONE, TRANSMISSION SERVICES, AND RULE 23 MODIFICATIONS. THE NEXT FOUR SLIDES COVER EACH OF OUR PRIMARY CONCERNS, WHOLESALE RATE, DESIGN, AND COST ALLOCATION. THIS REFERS TO THE PROCESS OF DETERMINING HOW SOCAL GAS SYSTEMS COSTS ARE ASSIGNED AMONG WHOLESALE CUSTOMER CLASSES AND TRANSLATED INTO RATE STRUCTURES THAT FAIRLY AND EFFICIENCY EFFICIENTLY RECOVER THESE COSTS. OUR CONCERN IS THAT SOCAL APPLICATION DOES NOT PROVIDE SUFFICIENTLY DISAGGREGATED COST OF SERVICE MODELS SHOWING HOW THE COSTS ARE ALLOCATED ACROSS CUSTOMER CLASSES. WITHOUT THAT CLARITY, IT IS IMPOSSIBLE TO DETERMINE WHETHER RATE INCREASES ARE JUSTIFIED. LONG BEACH IS ASKING FOR A FULL TRANSPARENT COST OF SERVICE ANALYSIS. SO THE PUC AND AFFECTED PARTIES SUCH AS OURSELVES CAN EVALUATE WHETHER THE PROPOSED RATE DESIGN TRULY REFLECTS COST, CAUSATION, AND PUBLIC INTEREST PRINCIPLES, STORAGE ALLOCATION AND BALANCING RIGHTS. THIS REFERS TO THE RULES AND ENTITLEMENTS THAT DETERMINE HOW MUCH NATURAL GAS STORAGE CAPACITY CUSTOMERS RECEIVE AND HOW THEY MAY USE THAT STORAGE TO BALANCE THEIR GAS SUPPLIES AND DELIVERIES OVER TIME. STORAGE IS NOT JUST A FINANCIAL ISSUE, IT'S A RELIABILITY ISSUE, SO-CALLED GAS PROPOSES. REPLACING THE STORAGE FRAMEWORK ADOPTED IN A 2024 CAP SETTLEMENT, WHICH CURRENTLY PROVIDES OPERATIONAL CERTAINTY FOR WHOLESALE CUSTOMERS. THE PROPOSED CHANGES IN INDUCE OR INTRODUCE UNCERTAINTY AROUND BALANCING RIGHTS AND ACCESS, POTENTIALLY INCREASING RELIABILITY RISKS FOR LONG BEACH CUSTOMERS. LONG BEACH IS NOT CATEGORICALLY OPPOSED TO THE CHANGE, BUT WE ARE ASKING SOCAL GAS TO DEMONSTRATE WITH EVIDENCE THAT THESE CHANGES SERVE THE PUBLIC INTEREST AND DO NOT COMPROMISE SYSTEM RELIABILITY. BACKBONE TRANSMISSION SERVICE, THIS REFERS TO THE SOCAL GAS HIGH PRESSURE INTERSTATE CONNECTED PIPELINE SERVICE THAT TRANSPORTS NATURAL GAS ACROSS THIS TRANSMISSION SYSTEM FROM SUPPLY RECEIPT POINTS TO LOCAL DISTRIBUTIONS SYSTEMS LIKE LONG BEACH UTILITIES. FOR US FIRM ACCESS TO THIS SYSTEM IS ESSENTIAL TO PROVIDE RELIABLE AND AFFORDABLE SERVICE IN ITS APPLICATION. SO-CAL GAS PROPOSES LIMITING FIRM BTS CAPACITY TO 110% OF THE SYSTEM'S MINIMUM DESIGN STANDARD COMPLICATED, BUT THIS CHANGE MATTERS. IT COULD CONSTRAIN ACCESS TO FIRM TRANSMISSION WHILE INCREASING COST EXPOSURE TO WHOLESALE CUSTOMERS DO NOT CONTROL THIS INFRASTRUCTURE PLANNING OR INVESTMENT FOR LONG BEACH UTILITIES. THIS RAISES CONCERNS ABOUT RELIABILITY DURING CONSTRAINED PERIODS. LONG BEACH AGAIN, IS NOT OPPOSING INFRASTRUCTURE INVESTMENT. WE ARE, HOWEVER, ASKING FOR TRANSPARENCY THROUGH A CLEAR DISAGGREGATED COST OF SERVICE ANALYSIS. SO THE PUC CAN DETERMINE WHETHER THESE CHANGES ARE JUST REASONABLE AND IN THE PUBLIC INTEREST. RULE 23 MODIFICATIONS. THIS REFERS TO PROPOSED CHANGES TO SOCAL GAS'S TARIFF OR RATE STRUCTURE PROVISIONS. UH, GOVERNING CURTAILMENT PRIORITIES AND SERVICE ELIGIBILITY, WHICH DEFINE HOW GAS SERVICES MANAGED DURING SYSTEM SHORTAGES TO PROTECT RELIABILITY AND CORE CUSTOMERS. SOCAL GAS PROPOSES EXPANDING CORE ELECTRIC GENERATION ELIGIBILITY TO GENERATORS UP TO 10 MEGAWATTS AND REMOVING THE EXISTING MONTHLY, UH, USAGE THRESHOLD. THIS CHANGE MATTERS. EXPANDING THE CORE LOAD INCREASES THE NUMBER OF CUSTOMERS WITH PRIORITY ACCESS, POTENTIALLY REDUCING, REDUCING SYSTEM FLEXIBILITY AND SHIFTING CURTAILMENT RISK ONTO WHOLESALE AND MUNICIPAL CUSTOMERS SUCH AS OURSELVES. AGAIN, LONG BEACH IS NOT OPPOSED TO ELECTRIC GENERATION. IT IS ASKING THE PUC TO REQUIRE FURTHER ANALYSIS TO ENSURE THESE CHANGES DO NOT COMPROMISE RELIABILITY OR UNFAIRLY REDISTRIBUTE RISK TO THE HOME STRETCH VOTES. [00:40:01] SO IN SHORT, THE TCAP DIRECTLY SHAPES THE WHOLESALE RATES PAID BY LONG BEACH UTILITIES AND IN TURN THE BILLS PAID BY RESIDENTS AND BUSINESSES IN OUR JURISDICTION. BECAUSE IT IS SET ONLY ONCE EVERY THREE YEARS AND LOCKED IN THROUGH 2029, IT IS AMONG THE MOST CONSEQUENTIAL PROCEEDINGS FOR ENSURING AFFORDABILITY AND FAIR TRANSPARENT COST ALLOCATION STAFF PLANS TO CONTINUE TO ENGAGE IN THIS REGULATORY PROCEEDING THROUGH THE FORMAL PROTEST PROCESS IN WHICH WE EXPECT TO CONTINUE THROUGH 2026. OUR GOALS ARE TO MAINTAIN NATURAL GAS AFFORDABILITY AND OPERATIONAL EFFICIENCY AND SAFETY. STAFF RECOMMENDS RECEIVING AND FILING THE LONG BEACH UTILITIES PROTEST TO APPLICATION 25 0 9 14. PARTICIPATION IN TCAP CARRIES NO DIRECT FISCAL IMPACT, BUT IS ESSENTIAL TO PROTECTING LONG-TERM AFFORDABILITY. THIS ACTION ALIGNS SQUARELY WITH THE FISCAL YEAR 20, UH, 26 BUSINESS PLANS, COMMITMENT TO PROACTIVE REGULATORY ENGAGEMENT AND WITH THE BOARD'S, UH, PUBLIC POLICY PRIORITIES ON NATURAL GAS AFFORDABILITY. SO THIS CONCLUDES MY REPORT AND I'M HAPPY TO ANSWER ANY QUESTIONS. THANK YOU, TONY. UH, IT SOUNDS COMPLICATED. UH, DO WE HAVE ANY PUBLIC COMMENTS? ANY COMMISSIONER COMMENTS? I'D LIKE TO SPEAK. UM, I GOT A COUPLE QUESTIONS. FIRST OF ALL IS, UM, IS, IS LONG BEACH GAS, IS IT PRI A PRIVATE ENTITY? IT'S PUBLIC. IT'S CONSIDERED A A PUBLIC UTILITY, SO IT'S A MUNICIPAL UTILITY. OKAY. AN INVESTOR OR SHAREHOLDER. OKAY. UM, BASED ON HISTORY. WELL, THERE'S, THANK YOU FOR THAT. THAT WAS REALLY WELL DONE, AND A COMPLEX THING. AND I KNEW THAT YOU WOULD EXPLAIN WELL, BECAUSE READING THE MATERIALS IS HARD TO, IT'S SO COMPLEX. UM, BASED ON HISTORY, HOW LIKELY IS IT THAT THEY WILL ENTERTAIN OUR EQUITY? YOU KNOW, CONCERNS? THAT IS THE MILLION DOLLAR QUESTION. YEAH. WE HAVE PARTICIPATED IN THESE PROCEEDINGS, THESE TCAP PROCEEDINGS FOR YEARS. HOWEVER, THESE PROCEEDINGS OCCUR OVER TWO STAGES. THE FIRST STAGE IS THE STAGE THAT WE'RE PARTICIPATING IN NOW, WHICH WE HAVEN'T DONE BEFORE. THAT STAGE IS, WHICH THE, UH, SOCAL GAS PROPOSES ITS COST INCREASES FOR THE PUC, WHICH REGULATES THEIR COSTS. WE USUALLY WAIT TO STAGE TWO, WHICH IS ONE. ONCE THE PUC APPROVES THESE COST INCREASES, THEN THEY ALLOCATE THOSE COSTS ACROSS THEIR VARIOUS CUSTOMER COSTS. SO WE USUALLY WAIT TILL STAGE TWO WHEN WE KNOW EXACTLY HOW MUCH THESE COSTS ARE GOING TO BE AFFECTING OUR RATES PAID TO SOCAL GAS. UNDER THIS NEW LEADERSHIP WE'VE DECIDED TO PARTICIPATE IN AT AN EARLIER STAGE TO REALLY GET INTO THE WEEDS, TO LOOK UNDER THE HOOD AND SEE HOW SOCAL GAS IS CALCULATING THESE COST INCREASES IN THE FIRST PLACE. AND WE FEEL CONFIDENT, UH, THROUGH NEGOTIATIONS. IT HAS OCCURRED IN THE PAST. OTHER STAKEHOLDERS, UH, OR NEGOTIATING BODIES GET INVOLVED IN STAGE ONE AND THEY ARE ABLE TO ENTER INTO SETTLEMENTS, WHICH IS OUR GOAL HERE TO SAY SOCAL, IN WHICH SOCALGAS SAYS, WELL, WE REALLY DON'T HAVE TO INCREASE IT THAT MUCH, OR WE REALLY DON'T HAVE TO ALLOCATE THESE COSTS AS WE ARE DOING. THAT'S OUR GOAL HERE, BUT WE'RE GETTING INVOLVED EARLY ON BECAUSE THIS IS, AS WE KNOW, VERY CONSEQUENTIAL AND COULD SUBSTANTIALLY IMPACT OUR RACE. MM-HMM . YOU HAD A REALLY BRIEF TIMEFRAME TO EVALUATE EVERYTHING, SO IT FEELS CRAZY. CONGRATULATIONS ON DOING THAT. YEAH, THANK YOU. ANY OTHER COMMENTS? YES, SIR. THANK YOU. VERY INFORMATIVE. YES, SIR. YES, IT'S COMPLICATED. UNDERSTAND. SO IN SOCAL GASES IN SAN DIEGO GAS AND ELECTRIC TERRITORY, IT'S A LONG LIST. IT'S US AND THE CITY OF VERNON. THERE ARE NO OTHER MUNICIPAL GAS UTILITIES THAT SAID, UH, WE ARE CLOSELY ALIGNED WITH THE CITY OF PALO ALTO. THEY ALSO ARE A RELATIVELY LARGE MUNICIPAL GAS UTILITY. HOWEVER, THEY FALL IN PG E SPECIFIC GAS AND ELECTRICS TERRITORY. PG E GOES THROUGH A SIMILAR, UH, TRIENNIAL COST ALLOCATION PROCESS. WE DON'T PARTICIPATE IN THAT BECAUSE WE DON'T, WE DON'T FALL IN THEIR TERRITORY AND, UH, USE THEIR SYSTEM TO GET OUR GAPS. [00:45:11] RECOMMENDATION. YEAH, I I FULLY SUPPORT THE RECOMMENDATION TO, TO CHALLENGE THIS AND, AND MOVE FORWARD. I THINK IT SENDS THE RIGHT MESSAGE TO OUR RATE PAYERS THAT WE ARE FIGHTING, UM, THE AFFORDABILITY FIGHT, UM, ON THEIR BEHALF AT LEAST, YOU KNOW, WE'RE ASKING THE TOUGH QUESTIONS AND YOU KNOW, WE'RE NOT JUST GONNA ROLL OVER AND, AND, AND TAKE IT. SO, UM, APPRECIATE YOUR WORK ON THIS AND PLEASE KEEP US UPDATED. ABSOLUTELY. WILL DO. THANK YOU. YES, SIR. THANK YOU TONY AND DIANA FOR THIS. UM, WHAT, WHAT ARE THE NEXT STEPS THEN? I, I, I'M TRYING TO FOLLOW IT AND AS EVERYBODY SAID, I'M KIND OF LOST A LITTLE BIT HERE. THERE'S FOUR DIFFERENT THINGS WE'RE, UM, I DON'T KNOW, OBJECTING TO OR ASKING. IT SOUNDS LIKE WE'RE ASKING FOR MORE INFORMATION SO THAT WE CAN DECIDE WHETHER WE OBJECT TO IT, RIGHT? CORRECT. AND, AND WHAT KIND OF IMPACT DO YOU THINK THIS WILL HAVE ON THE RATES? I MEAN, IS IT, IS IT DOUBLE DIGIT RATE INCREASES? IS IT, HOW BIG ARE WE TALKING SCOPE IF, YOU KNOW, WE'RE LOOKING AT THE APPLICATION, WE DON'T REALLY KNOW HOW THESE COSTS ARE GONNA BE ALLOCATED AS YET, BUT LOOKING AT THE PROPOSED RATE INCREASES, IT COULD BE SIGNIFICANT ACROSS ANY OF THESE FOUR, UH, CATEGORIES IN WHICH WE'RE CHALLENGING. SO IN TERMS OF THE NEXT STEPS, UM, I NEED TO RELY ON YOU AND MARSH'S GUIDANCE BECAUSE IT GETS INTO THE DISCOVERY PHASE. WE, UH, IN WRITING ASK FOR EXACTLY THE TYPE OF INFORMATION WE'RE LOOKING FOR FOR CLARITY. NOT IN THIS ALONE. THERE ARE OTHER GROUPS, UH, RATE PAYER ADVOCATES, UH, OTHER WHOLESALE CUSTOMERS WHO ARE ALSO WEIGHING IN ON THIS. SO WE'RE NOT COMPLETELY ON AN ISLAND, BUT WE'RE UNIQUE IN THAT WE'RE A ONLY MUNICIPAL GAS UTILITY THAT ARE PARTICIPATING IN THESE PROCEEDINGS. VERNON IS THERE, BUT THEY'RE LARGELY AN INDUSTRIAL CUSTOMER, UH, BASE AND NOT MANY RESIDENTIAL. IF YOU HAVE ANYTHING MORE ADD TO THIS, I GUESS ON FOLLOW UP TO THAT, DOES THE PUC THEN WEIGH IN ON THE PROTESTS AND MAKE A DEMAND ON EDISON, I MEAN SOCALGAS AND SAN DIEGO TO PROVIDE THE INFORMATION? YES. SO THEY PLAY THE ARBITRARY IN A WAY? YES. SO THE, THE APPLICATION IS BY SOCALGAS, THEY'RE DOING IT TOGETHER. THOSE HOME IOUS INVESTOR OWNED UTILITIES APPLY TO THE CPUC. THE CPU C IS THE STATE REGULATORY AGENCY. WE AS LA BEACH UTILITIES IS A CUSTOMER OF SOCALGAS. SO WE, ALONG WITH A NUMBER OF OTHER INTERESTED GROUPS, EVERYONE FROM SIERRA CLUB TO CITY OF VERNON, TO ANYONE WHO MAY BE INTERESTED IN THE NATURAL GAS CONVERSATION AND COSTS AND OTHER PARTICULARLY SAFETY IMPACTS ASSOCIATED WITH IT ARE WEIGHING IN. UM, THE PROCESS ON THE REGULATORY SIDE IS VERY DIFFERENT THAN ON THE LEGISLATIVE SIDE. SO ON THE LEGISLATIVE SIDE, IF YOU'RE FAMILIAR WITH THAT, THERE'S A START DATE AND END DATE. YOU HAVE A COUPLE DIFFERENT COMMITTEE HEARINGS, YOU TESTIFY COMMITTEE VOTES, AND, AND YOU EITHER MOVE FORWARD OR YOU DON'T. I KIND OF LIKEN IT TO BASEBALL. ON THE REGULATORY SIDE, IT'S A LOT MORE COMPLEX. THE LESS QUESTIONS WE ASK, UH, THE FASTER IT GOES FOR, FOR SOCAL AND SDG E THE MORE QUESTIONS WE ASK, UM, SLOWER IT GOES. AND, AND THERE'S A JUDGE ADJUDICATE WHO KIND OF OVERSEES THE WHOLE PROCESS AND ULTIMATELY THE CPUC VOTES. SO TWO WEEKS AGO, UM, AFTER WE HAD SUBMITTED OUR FIRST PROTEST, THERE WAS A PRE-CONFERENCE HEARING KIND OF OPEN UP THE ENTIRE PROCEEDING PROCESS. AND IN THIS PRE-CONFERENCE HEARING, WHICH IS RUN BY THE JUDGE JUDICATE, IT COULD HAVE GONE A NUMBER OF WAYS. THE JUDGE JUDICATE COULD HAVE, UM, ASKED MORE DETAILED QUESTIONS, UM, AND, AND GOTTEN A LITTLE BIT INTO THE WEEDS, OR THEY COULD HAVE JUST SAID, IF YOU'RE INTERESTED, RAISE YOUR HAND. GENERALLY, YOU KNOW, GAVEL, OPEN PROCEEDINGS BEGIN, AND IN, IN THIS CASE, FOR THIS CYCLE OF THE TCAP, UM, THE LATTER WAS, WAS MORE TRUE. UM, I THINK THAT THE JUDGE ADJUDICATE DEFINITELY READ THROUGH EVERY PROTEST THAT WAS RECEIVED BECAUSE IN THEIR COMMENTS, THEY NOTED, UM, THAT, THAT THE ORIGINAL APPLICATION BY SOCALGAS WAS VERY MUCH AGGREGATED. AND SO THEY NOTED THAT W BEACH UTILITIES AND OTHER AGENCIES HAD ASKED FOR, UM, A DISAGGREGATION OF SOME OF THE JUSTIFICATION THAT SOCAL HAD SUBMITTED FOR THEIR RATE INCREASES. AND SO THAT SIGNALS TO SOCAL THAT THEY SHOULD DO THAT WORK. UM, AND, AND THAT KIND OF BACK AND FORTH WILL CONTINUE, UM, AT A PACE THAT IS REALLY DECIDED BY THE JUDGE ADJUDICATE AND THE CPUC. AND WE ARE RESPONSIBLE FOR BEING READY TO RESPOND AT EACH PHASE IN THE PROCESS. AND [00:50:01] DO, DO WE JUST FOLLOW UP ON THAT? DO WE HAVE A RELATIONSHIP THEN WITH SOCAL DIRECTLY GAS THAT WE RELY ON OR TALK TO? AND, AND HOW IS THAT FACTORED INTO GETTING INFORMATION THAT YOU NEED TO SAY, WE AGREE WITH THIS, WE DISAGREE, HOWEVER THAT WORKS. SURE. SO BACKING UP JUST SLIGHTLY, A LITTLE OVER A YEAR AGO, LONG BEACH UTILITIES, UM, THIS BOARD AND ITS CONFIGURATION AT THAT TIME APPROVED A CONTRACT FOR, UH, APPROVED A CONTRACT REALLY FOR THE CITY ATTORNEY'S OFFICE AND MARSHA, UM, TO ENTER INTO WITH A COMPANY CALLED DWGP. DWGP IS A LAW FIRM THAT IS BASED IN WASHINGTON DC THEY DO HAVE PARTNERS IN SACRAMENTO THAT DO GAS REGULATORY WORK. UM, THE PARTNERS WHO ARE WORKING WITH US, UM, AND ASSIGNED TO OUR CONTRACT ONLY DO PUBLIC UTILITIES. UM, PRIMARILY ELECTRIC, BUT THEY ALSO DO GAS. THEY ONLY DO PUBLIC UTILITIES. AND SO THEY'RE VERY FAMILIAR WITH, UM, THE STRATEGY AND THE FRAMEWORK FOR ENGAGING IN THESE TYPES OF REGULATORY PROCEEDINGS. AND IT IS THEIR DIRECTION, WHO WE ARE LEANING ON, UM, FOR DISCOVERY, UM, AND FOR, FOR LEGAL STRATEGY ON HOW TO NEGOTIATE TOWARDS A SETTLEMENT. ANY OTHER COMMISSIONER COMMENTS? UM, I JUST HAVE ONE VOICE OF CONCERN AND IT'S REGARDING TIMING AND OUR, UH, BUDGET PROCESS. I SEE STEPHANIE HIDING BEHIND TONY THERE. UM, AT WHAT POINT, UH, DO WE START TO GET CONCERNED ABOUT, UH, UH, WHEN WE'RE GOING TO KNOW THE FINAL OUTCOME AND, AND HOW WE CAN, HOW WE CAN BUDGET APPROPRIATELY? I THINK THAT'S A GREAT QUESTION. WE'LL HAVE TO WORK TOGETHER TO IDENTIFY THE TIMING IMPACTS. UM, I THINK ALSO IT'S IMPORTANT FOR US TO, TO GET A BETTER UNDERSTANDING ON THE BUDGET SIDE SO THAT WE CAN FIGURE OUT HOW THIS IMPACTS THE CUSTOMERS. AND, UM, WE DO COMPARE OURSELVES TOO, RIGHT? WE HAVE, UM, WHEN WE RAISE OUR RATES, WE CAN'T BE MORE THAN SOCAL. SO THIS IS SOMETHING THAT IF THEIR RATES GO UP AND THEY IMPACT US, THEN THAT MEANS UNFORTUNATELY OUR RATES WILL LIKELY HAVE TO INCREASE, UM, TO BE ABLE TO MEET THE DEMAND. SO I THINK, WELL, WE'RE IN BUDGET DEVELOPMENT. WE'RE, WE'RE KICKING OFF BUDGET DEVELOPMENT AS WE SPEAK. UM, SO MORE TO COME PRESENT, SCOTT. SO AS YOU GO THROUGH THE BUDGET PROCESS, IT IS INHERENTLY ALWAYS A QUESTION OF FORECASTING AND UNCERTAINTY. THERE'S THINGS IN THE LIFE OF THE UTILITY THAT YOU CANNOT, YOU SIMPLY CANNOT KNOW. UM, MANY TIMES METROPOLITAN MAY FIND ITSELF IN SEQUENCE, ADMITTEDLY TALKING ABOUT CHANGES TO RATES. IT MAY OR MAY NOT HAVE DECISIONS AND CLARITY THAT CAN GUIDE YOU AS YOU GO THROUGH THE BUDGET SETTING AS WELL. THAT BRINGS FORWARD THE QUESTION OF FUND BALANCE. AND THE REASON WHY FUND BALANCE THROUGH A PROPER FINANCIAL RESERVE POLICY SETS A MINIMUM AND A TARGET IS WITH THAT OBJECTIVE IN MIND. THE ABILITY TO HANDLE UNFORESEEN CIRCUMSTANCES IS ONE OF THE CRITICAL ASPECTS. SO AS WE GO FORWARD AND BRING YOU BUDGET RATES AND FUND BALANCE MANAGEMENT, IT'S INHERENTLY A STRUCTURE INTENDED TO GUIDE YOU ON HOW TO DEAL WITH SOME OF THESE UNCERTAINTIES. WE CAN EVEN DO SOME FINANCIAL PLANNING ANALYSIS TO GIVE YOU AN ASSESSMENT OF RISK, UH, POTENTIALLY IF WE TRY TO FORECAST THE IMPACT OF THE CHANGE FROM SOCALGAS. AND THAT UNFORTUNATELY IS THE MAXIMUM BOUNDARY OF HOW TO HANDLE THE UNCERTAINTY. THANK YOU. THANK YOU FOR THAT. MAY I ADD ONE COMMENT THAT WILL MAYBE PROVIDE A LITTLE BIT MORE CLARITY ON THIS? MOST OF THESE COSTS THAT WE ARE TALKING ABOUT WOULD BE EMBEDDED IN OUR COMMODITY COSTS AND, UM, COMMODITY COSTS KIND OF FLOAT WITH THE MARKET RATE. IT'S THE COST OF GAS AND WE INCLUDE THE COST OF GETTING THE GAS TO US. IS THAT SO, UM, THAT IS A DIRECT PASS THROUGH TO OUR RATE PAYERS, WHICH WE ARE TRYING TO MITIGATE. THERE IS ONE SIGNIFICANT COST AND IT HAS TO DO WITH THE TRANSMISSION COSTS, WHICH WE DON'T CAPTURE IN COMMODITY. THAT'S EMBEDDED IN OUR TRANSMISSION COSTS. AND THEY'RE PROPOSING, AS WE READ IT NOW, ABOUT A 23% INCREASE ON THAT. AND WE WOULD HAVE TO, IN ORDER TO RECAPTURE THAT, INCREASE OUR TRANSMISSION ACCORDINGLY, WHICH WOULD BE A BAD THING. . YIKES. YIKES. IT'S A STARTING POINT, OF COURSE. WELL, AND, AND CONGRATULATIONS AND FOR THE, UH, BEING PROACTIVE IN THIS CIRCUMSTANCE, UH, IT SOUNDS LIKE FOR THE FIRST TIME, UH, I APPRECIATE YOUR LEADERSHIP AND, AND I APPRECIATE YOU GUYS KEEPING ON TOP [00:55:01] OF IT. I'LL, I'LL HAVE SOME FOLLOW UP COMMENTS, [8. 25-57243 Recommendation to receive and file the December 4, 2025 Planning Committee Report.       Suggested Action: Approve recommendation. ] BUT THEY'LL ACTUALLY, I'LL TRY TO GIVE YOU A TIE IN TO METROPOLITAN SERVICE AREA. IT'S NOT EXACT, BUT IT'S VERY SIMILAR, CERTAIN STRUCTURES TO SOME OF THE DEBATES GOING ON AT METROPOLITAN. THANK YOU. ANY OTHER COMMENTS? YES, SIR. JUST TONY, IF YOU COULD GIVE ME A MAP, AND NOT RIGHT NOW, BUT OF OUR SERVICE AREA FOR THE GAS, I, I NOTICED WE HAVE A LOT OF, WE TOUCH A LOT OF THE CITY SURROUNDING LONG BEACH AND JUST FOR MY INFORMATION IN THE FUTURE, WHENEVER YOU GET A CHANCE, NO RUSH. THANK YOU. OKAY. UH, WE HAVE A MOTION AND A SECOND TO RECEIVE AND FILE. UH, ALL THOSE IN FAVOR SAY AYE. AYE. AYE. ANY OPPOSED? RIGHT. THANK YOU TONY. THANK YOU DIANA. THANK YOU STEPHANIE. UH, ALRIGHT. NOT ITEM NUMBER EIGHT, RECEIVE AND FILE, UH, RECEIVE AND FILE THE DECEMBER 4TH, 2025 PLANNING COMMITTEE, UH, REPORT. IN ORDER TO RECEIVE THE REPORT. MAY I PLEASE HAVE A MOTION TO RECEIVE AND FILE. THANK YOU. AND A SECOND WE, YOU GOT BOTH? SECOND. OKAY. THANK YOU. UH, AND IN ORDER FOR THE REPORT, I WILL READ OUT AS THE COMMITTEE CHAIR, UH, I'LL JUST READ OUT THE FOLLOWING. UH, AT OUR DECEMBER 4TH PLANNING COMMITTEE MEETING, COMMISSIONER MCGUIRE AND I WERE PRESENTED AN OVERVIEW OF WATER MAIN BREAKS ACROSS, ACROSS OUR SYSTEM OF ROUGHLY 900 MILES OF PIPE, SERVING MORE THAN 93,000 CONNECTIONS. THE KEY TAKEAWAY IS PERFORMANCE OVER THE PAST 25 YEARS, LONG BEACH UTILITIES HAS ACHIEVED A SUSTAINED REDUCTION IN MAIN BREAKS PER 100 MILES OF PIPE REFLECTING DISCIPLINED MAINTENANCE, TARGETED REPLACEMENTS, AND STRONG OPERATIONAL PRACTICES. TODAY OUR SYSTEM AVERAGES ROUGHLY FOUR MAIN BREAKS PER HUNDRED MILES OF PIPE ANNUALLY, WHICH IS WELL BELOW THE 15 OR LESS RECOMMENDED BY THE PARTNERSHIP FOR SAFE WATERS OPTIMIZED SYSTEM CRITERIA PLACING LONG BEACH IN AN ENVIABLE POSITION NATIONALLY WHEN COMPARED TO SIMILAR SIZE CITIES. THE COMMITTEE ALSO REVIEWS REVIEWED CHALLENGES THAT REMAIN INCLUDING AGING CAST IRON PIPE MATERIALS, AND SOME LIMITATIONS OF THE CURRENT MASTER PLANNING FRAMEWORK. STAFF OUTLINED A FORWARD-LOOKING PROPOSED MASTER PLAN THAT EMPHASIZES BETTER DATA INTEGRATION, CONDITION-BASED PLANNING, IMPROVED HYDRAULIC MODELING AND THE EXPLORATION OF [9. 25-57245 Recommendation to receive and file the General Manager’s Monthly Report for November 2025.       Suggested Action: Approve recommendation. ] ADVANCED ANALYTICS AI TO GUIDE FUTURE INVESTMENTS. UH, THE PLANNING COMMITTEE APPRECIATES THE STRONG PERFORMANCE TO DATE AND LOOKS FORWARD TO CONTINUED UPDATES AS THESE PLANNING ENHANCEMENTS ARE DEVELOPED AND BROUGHT FORWARD TO THE BOARD. THAT CONCLUDES MY REPORT. ANY PUBLIC COMMENTS, ANY COMMISSIONER COMMENTS? UH, WE HAVE A MOTION TO RECEIVE AND FILE. ALL THOSE IN FAVOR SAY AYE. AYE. AYE. ANY OPPOSED? THANK YOU. MOTION PASSES. UH, ITEM NUMBER NINE, UH, RECEIVE AND FILE THE GENERAL MANAGER'S MONTHLY REPORT FOR NOVEMBER, 2025. IN ORDER TO HEAR REPORT, MAY I HAVE A MOTION TO RECEIVE AND FILE? SO MOVED. THANK YOU. SECOND. THANK YOU. UH, CALL ON GENERAL ANDREW PEGAN. THANK YOU PRESIDENT SCOTT. AS ALWAYS, I TRIED TO BRING YOU CURES FOR INSOMNIA AND AS I BROUGHT YOU THIS REPORT, I AT FIRST THOUGHT THAT IT WAS A RELATIVELY SIMPLE, UH, INFORMATION OUT IN METROPOLITAN, BUT BECAUSE IT TOUCHES ON ELEMENTS THAT YOU JUST HEARD ABOUT IN THE MIDST OF DISCUSSION ON THE TCAP, IT CONSTITUTES ABOUT 64 PAGES, INCLUDING ITS OWN MEMBER AGENCY PRESENTATION. I, I HAVE TO CONFESS, I DIDN'T REALIZE THAT I WAS GIVING YOU ALL THAT INFORMATION WHEN IT SIMPLY TOLD DINA, CAN YOU MAKE A COPY OF IT AND DISTRIBUTE IT. UM, SO IN THE INTEREST OF TIME AND BREVITY, I'M GONNA TRY TO SUMMARIZE THIS WITH THE SIMPLE PHRASE AT OR NEAR THE BOUNDARY AND LET'S EXPLORE THE SIMPLICITY OF THAT PHRASE AT OR NEAR THE BOUNDARY. THIS IS THE OBLIGATION OF METROPOLITAN TO ITS MEMBER AGENCIES TO PROVIDE CONNECTIONS, MUCH LIKE YOU SAW AT THE BEGINNING OF THE MEETING TODAY, UH, TO PROVIDE METROPOLITAN WATER SERVICE TO ITS MEMBER AGENCIES AT OR NEAR THE BOUNDARY. A SIMPLE POLICY PHRASE, BUT A HISTORY DATING BACK TO THE 1950S OF SO MANY DIFFERENT VARIATIONS ON THE MAP HERE IN PARTICULAR, AT THE VERY TOP OF THAT SLIDE, YOU SEE IN GREEN A REFERENCE TO A MU UM, MUNICIPAL WATER DISTRICT, FOOTHILL MUNICIPAL WATER DISTRICT, A MEMBER AGENCY OF METROPOLITAN PRESIDENT SCOTT. YOU WERE AT THE LAVERNE TREATMENT PLANT AND WHEN YOU WERE SITTING, STANDING AT THE TOP OF THE TREATMENT PLANT AND WE WERE COMMENTING ON THE DISTRIBUTION AREA, I POINTED OUT TO YOU THAT ALL THE WAY FROM CORONA LAKE MATTHEWS TO LAVERNE, AND THEN FROM LAVERNE DOWN TO THE COASTAL [01:00:01] PLAIN OF LOS ANGELES AND ORANGE COUNTIES, EVERYTHING FUNCTIONS BY GRAVITY. THIS MEANT THAT AS A POLICY OBJECTIVE FROM METROPOLITAN, AS THE MEMBER AGENCIES ANNEXED INTO METROPOLITAN IN ITS HISTORY, IT WAS QUITE EASY TO MEET AT OR NEAR THE BOUNDARY. YOU JUST SIMPLY CONNECTED ANOTHER CONNECTION TO THE PIPELINE. AND LO AND BEHOLD, WATER CAME OUT BY GRAVITY. AS YOU CAN UNDERSTAND, UNDERSTAND BY ITS NAME. FOOTHILL MUNICIPAL WATER DISTRICT IS IN THE FOOTHILLS. YOU WOULD RECOGNIZE THESE COMMUNITIES AS LA KENYATA, FLINT RIDGE AND OTHER AREAS, UH, IN THAT VICINITY. IT CANNOT BE SUPPLIED BY GRAVITY. THIS WAS THE MATTER OF INTENSE PUBLIC POLICY DEBATE IN THE EARLY STAGES OF THE ANNEXATION OF FOOTHILL MUNICIPAL WATER DISTRICT INTO THE METROPOLITAN TERRITORY. THE ULTIMATE RESOLUTION OF THAT NOT GOOD WAS THAT AN EXTERNAL FACILITY OUTSIDE THE BOUNDARIES OF FOOTHILL MUNICIPAL WATER DISTRICT WOULD NEED A PUMP STATION, AN INFRASTRUCTURE THAT WOULD CONNECT TO THE METROPOLITAN PIPELINE AND DELIVER WATER BY PRESSURE UP TO FOOTHILL MUNICIPAL WATER DISTRICT'S TERRITORY COSTS FOR PUMPING THE OBLIGATION OF FOOTHILL MUNICIPAL WATER DISTRICT COST FOR MAINTENANCE OF THE PUMP, INCLUDING REGULAR MAINTENANCE AND REHABILITATION OF THE PUMP IN ASSOCIATED INFRASTRUCTURE OBLIGATIONS OF FOOTHILL MUNICIPAL WATER DISTRICT. YOU CAN SEE, AND IT'S MY INTENTION TO DESCRIBE TO YOU A CONTRAST WITH WHAT I JUST SAID AND THE SIMPLE PHRASE AT OR NEAR THE BOUNDARY. THIS HAS BECOME IMPERATIVE IN THE DISCUSSION RECENTLY BECAUSE AMONGST THE MEMBER AGENCIES, THERE'S BEEN CONTINUED DISCUSSION OF HOW TO DEAL WITH THE CONSEQUENCES OF THE FUTURE. WHERE SCARCITY OF SUPPLIES, BOTH ON THE COLORADO AND ON THE STATE WATER PROJECT CAUSE METROPOLITAN NOW TO MAKE SYSTEM IMPROVEMENTS ACROSS THE ENTIRE SERVICE AREA IN ORDER TO GREATER FACILITATE THE DELIVERY OF SUPPLIES TO MEMBER AGENCIES AT OR NEAR THE BOUNDARY. WHAT HILL MUNICIPAL WATER DISTRICT, RIGHTFULLY HAS SAID, IF YOU'RE ASKING ME TO PAY FOR ALL THAT, ISN'T IT ABOUT TIME THAT YOU PAY FOR THE STUFF THAT I HAVE TO DO JUST SIMPLY TO MEET THE STATEMENT AT OR NEAR THE BOUNDARY? FOR ME, THAT CONSTITUTES ABOUT 64 PAGES, TWO MEMBER AGENCY PRESENTATIONS AND ADMITTEDLY JUST AN INFORMATION SESSION WITH THE FINANCE COMMITTEE. ENGINEERS NOTORIOUSLY KICK IT TO FINANCE ALL THE TIME. AND SO WHILE IT MAY SEEM AS AN INFRASTRUCTURE QUESTION IN TERMS OF PUMPS AND MAINTENANCE AND REHAB, IT BECOMES A FINANCE QUESTION IN TERMS OF THE IMPACTS TO METROPOLITAN RATES FOR ALL OF US, INCLUDING LONG BEACH. IF WE GIVE IN TO THIS CONCEPT THAT FOOTHILL IS ENTITLED, GOING FORWARD TO HAVE ITS COST RECOVERED BY METROPOLITAN FOR PUMPING THAT WATER, ADMITTEDLY IT MIGHT BE RELATIVELY SMALL, BUT THE POINT OF THE MAP AND THE 64 PAGES WAS THE DISCUSSION THAT AT OR NEAR THE BOUNDARY, CURIOUSLY ENOUGH, AFFECTS ANY NUMBER OF MEMBER AGENCIES THAT EVEN THOUGH THE PHRASE IS SIMPLE, HAVE THE NUANCES OF BEING UNABLE TO MEET THAT OBLIGATION. SAN DIEGO IN PARTICULAR, SAN DIEGO COUNTY WATER AUTHORITY, THE AGENCY TO THE SOUTH SAN DIEGO COUNTY WATER AUTHORITY IN PARTICULAR HAS ELEMENTS HERE THAT RELATE BACK TO WHAT YOU HEARD ABOUT GAS. SAN DIEGO COUNTY WATER AUTHORITY WITH ITS LOCAL DEMANDS IS CURIOUSLY NOW VERY CLOSE TO HAVING ITS ENTIRE WATER NEEDS MET BY ITS OWN CONTRACTED SUPPLIES THAT EXIST OUTSIDE METROPOLITAN, NAMELY A COLORADO RIVER TRANSFER FROM IMPERIAL IRRIGATION DISTRICT. SAN DIEGO IS ALWAYS INTERESTED IN HOW METROPOLITAN HANDLES ITS COSTS IN ORDER TO UNDERSTAND HOW IT GETS CHARGED BY METROPOLITAN FOR WATER THAT IT INHERENTLY HAS CONTRACTED FOR HOW OUTSIDE METROPOLITAN SERVICE AREA, VERY SIMILAR. SO THESE ISSUES TRANSCEND THEMSELVES IN TERMS OF US AS A UTILITY TRYING TO MANAGE RESOURCES AND TRYING TO UNDERSTAND HOW THOSE CHANGES AND COSTS AFFECT US. THE ITEM THAT I BROUGHT TO YOU IN THE GENERAL MANAGER'S REPORT IS AN INFORMATION ITEM. IT'S STRICTLY FOR YOUR BACKGROUND INFORMATION. METROPOLITAN IS GONNA CONTINUE TO ADVANCE THIS. I THINK OVERALL IT'S A RELATIVELY MINOR COST, METROPOLITAN'S OVERALL CHARGES. AT THE SAME TIME THOUGH IT COULD POTENTIALLY BE PRECEDENT SETTING. COMMISSIONER CORDERO AS DIRECTOR IS GONNA BE DEALING WITH THIS. IT'S ANTICIPATED MORE PRESENTATIONS AND MORE DISCUSSIONS WILL TAKE PLACE POTENTIALLY FOR ACTION BY THE METROPOLITAN BOARD SOMETIME IN MARCH. IN THE MEANTIME, IF YOU WANNA GO THROUGH ALL 64 PAGES, YOU CAN. UM, BUT I THINK THIS IS A GOOD ENOUGH SYNOPSIS FOR YOU OF THE ITEM. THANK YOU. HAVE, UH, HAVE WE GONE ON THE RECORD AS TO OUR POSITION? WE HAVE NOT. UM, COMMISSIONER CORDERO, AS IT OFTEN HAPPENS IN METROPOLITAN, IS GETTING APPROACHED BY ANY NUMBER OF MEMBER AGENCIES, NAMELY FOOTHILL MUNICIPAL WATER DISTRICT. BUT INVARIABLY, AS YOU CAN [01:05:01] SEE FROM THE MAP, CRITICAL TO THIS IS HOW SAN DIEGO COUNTY WATER AUTHORITY STANDS ON THE ISSUE. THEY HAVE ABOUT 28% OF THE WEIGHTED VOTE. METROPOLITAN PEGAS HAS SAID, UH, TO ME, UM, AT THE AQUA CONFERENCE, THEY WERE AT VEGAS, IT SAID THAT THEY DON'T OBJECT TO FOOTHILL, BUT THEY WANT NO PART OF WHAT FOOTHILL IS ASKING FOR SANTA MONICA. CURIOUSLY ENOUGH, THERE IS AN ACTUAL PIPELINE CALLED THE SANTA MONICA FEEDER. WHY ON EARTH THAT DOES NOT MEET THE AT OR NEAR THE BOUNDARY? I HAVE NO IDEA YET. UH, HI CLOSE FRIEND IS SUNNY WANG, THE GENERAL MANAGER AT SANTA MONICA. ANTICIPATE WE MIGHT MAKE A PHONE CALL TO SO AND ASK HIM WHAT THE HECK IS GOING ON THERE. UM, AND SAN MARINO, A VERY SMALL MEMBER AGENCY, WAS ONE OF THE ORIGINAL FOUNDING MEMBER AGENCIES OF METROPOLITAN. HOW IT DOESN'T MEET THAT OBLIGATION, I'M NOT SURE. UM, BUT AS YOU INDICATED WITH YOUR QUESTION, UH, DIRECTOR CORDERO'S GONNA BE DEALING WITH A NUMBER OF DIFFERENT FACTIONS AND WHETHER THEY ACCEPT IT, AGAIN, I THINK IT'S A NOMINAL CHANGE TO THE TOTAL COST. BUT PRECEDENT SETTING, IF YOU'RE NOT CAREFUL, YOU FOR THAT, I DON'T UNDERSTAND ON THE MAP THEIR HAVE THE POTENTIAL TO ASK FOR THE SAME THING. SO WHEN I WAS TALKING TO COMMISSIONER CORDERO, DIRECTOR CORDERO, WE WERE TALKING ABOUT A METROPOLITAN. THE TERMINOLOGY THAT'S GONNA COME FORWARD IN THE PUBLIC POLICY DEBATE IS WHETHER IT'S A QUESTION OF EQUALITY, EQUITY, OR PARITY. AND SO CORRECT. SO KAYAS MUNICIPAL WATER DISTRICT, THEY TAKE THEIR WATER, UH, THROUGH THE SAN FERNANDO VALLEY AND UP TO THE TOP OF EXITING THE SAN FERNANDO VALLEY BEFORE YOU DROP DOWN TO VENTURA. THE POINT OF CONNECTION FOR THEM IS AT THE TOP OF THAT RISE COMING OUT OF THE VALLEY, THERE IS NO PUMP COSTS NECESSARILY. THEY COULD GET PUMPING COSTS PAID BY METROPOLITAN OUT OF THE GREG AVENUE PUMP STATION, WHICH WAS, SORRY, WAS THE ORIGINAL SOURCE OF WATER FOR CAAS MUNICIPAL WATER DISTRICT BEFORE THEY ANNEXED INTO METROPOLITAN. HERE'S THE CAVEAT, COMING OUTTA THE SAN FERNANDO VALLEY TO DROP DOWN INTO VENTURA, THERE'S A HYDROELECTRIC PLANT THAT RECOVERS THE PRESSURE AND GENERATES ELECTRICITY AND THAT IS TO THE BENEFIT OF KAYA'S MUNICIPAL WATER DISTRICT, BUT IT RESIDES OUTSIDE THE BOUNDARY. THE GENERAL MANAGER HAS TOLD ME, I WANT NO PART OF THIS. I'M VERY HAPPY TO TAKE THE REVENUE OF HYDROELECTRIC RECOVERY AND KEEP IT FOR MYSELF. I DON'T WANT TO GIVE THAT TO METROPOLITAN SAN DIEGO COUNTY WATER AUTHORITY. I DON'T KNOW IF YOU CAN SEE AT THE TOP OF THE, UH, PART IN THE NORTHERN MOST PORCELAIN OF THE COUNTY, THERE'S A LITTLE DIP NOW OF BROWN INTO THE COUNTY. IN THE PAST, UH, COUPLE OF YEARS, THERE WAS AN ANNEXATION FIGHT. UM, TWO MEMBER AGENCIES OF SAN DIEGO COUNTY WATER AUTHORITY DID NOT LIKE PAYING FOR ALL THE COSTS OF THE TRANSFER IN THE CARLSBAD DESAL PLANT. SO THEY ASKED TO DE ANNEX THEMSELVES FROM SAN DIEGO AND ANNEX, ANNEX THEMSELVES INTO EASTERN MUNICIPAL WATER DISTRICT AND WESTERN MUNICIPAL, NO EASTERN MUNICIPAL WATER DISTRICT, ANOTHER METROPOLITAN, UH, MEMBER AGENCY, AND IMMEDIATELY LOWER THEIR COSTS FOR IMPORTED WATER. HOWEVER, THOSE NORTHERN SAN DIEGO COUNTY WATER MEMBER AGENCIES HAPPENED TO HOLD THE ACTUAL METROPOLITAN CONNECTIONS, THE SAN DIEGO COUNTY WATER AUTHORITY. WHEN THAT ANNEXATION, WHICH WAS LAFCO SUPPORTED WHEN IT CHANGED OVER, IT NOW STRANDED THOSE CONNECTIONS. METROPOLITAN HAS ASSURED ME THAT THEY AND SAN DIEGO HAVE A MUTUAL AGREEMENT AND UNDERSTANDING ON HOW TO MANAGE THOSE CONNECTIONS. SAN DIEGO IS NOT INTERESTED IN WHAT FOOTHILL IS TRYING TO GET. NONETHELESS, DIRECTOR CORDERO IS STILL GONNA GO THROUGH IT. DOES THAT GIVE YOU A ANSWER YOUR QUESTION A LITTLE BIT. SORRY FOR GOING INTO THE WEEDS. OKAY. ANY OTHER COMMISSIONER COMMENTS? THANK YOU. UH, SO WE HAVE A MOTION TO RECEIVE AND FILE THE GENERAL MANAGER'S REPORT. UH, ALL THOSE IN FAVOR PLEASE SAY AYE. AYE. BE OPPOSED. THANK YOU. [CLOSED SESSION] UH, OKAY. SO WE'LL BE NOW MOVING INTO CLOSED SESSION, UH, [ 25-57246 Pending Litigation – closed session conference with legal counsel relating to liability claims pursuant to subparagraph (2) of subdivision (d) of Section 54956.9 of the California Government Code: Government Tort Claim of Rancho Los Alamitos Foundation (C25-0268).   ] WITH TWO ITEMS. ITEM NUMBER ONE, PENDING LITIGATION. CLOSED SESSION CONFERENCE WITH LEGAL COUNSEL RELATING TO LIABILITY LIABILITY CLAIMS PURSUANT TO SUBPARAGRAPH TWO OF SUBDIVISION D OF SECTION 5 4 9 5 6 0.9 OF CALIFORNIA GOVERNMENT CODE, GOVERNMENT TORT CLAIM OF RANCHO LOS ALAMITOS FOUNDATION, C 25 DASH 2 68. ANY PUBLIC COMMENTS ON ITEM NUMBER ONE. ITEM NUMBER TWO [01:10:01] WILL BE, UH, PURSUANT [ 25-57284 Pursuant to Paragraph (b) (1) of Section 54957 of the California Government Code regarding Public Employee Performance Evaluation: General Manager ] TO PARAGRAPH B ONE OF SECTION 5 4 9 5 7 OF CALIFORNIA GOVERNMENT CODE REGARDING PUBLIC EMPLOYEE PERFORMANCE EVALUATION, GENERAL MANAGER, ANY PUBLIC COMMENTS HERE? EXCELLENT. UH, WE WILL NOW RECESS INTO CLOSED SESSION. ALL RIGHT, WE ARE BACK IN SESSION. THANK YOU FOR YOUR PATIENCE. UM, I WILL DEFER TO MARSHA WITH, UH, ANY REPORTABLE ITEMS FROM CLOSED SESSION. UH, THE PENDING CLAIM ON THE RANCHO LOS ALAMITOS FOUNDATION, CLAIM NUMBER C 25 2 68 WAS SETTLED IN THE AMOUNT OF 156 80 $9 AND 12. AND THERE'S NOTHING TO REPORT ON THE GENERAL MANAGER PERFORMANCE EVALUATION. THANK YOU SO MUCH. UH, PUBLIC COMMENT PERIOD. IS THERE ANYONE WISHING [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.] TO SPEAK ON A NON-AGENDA ITEM? SEEING NONE PUBLIC COMMENT PERIOD IS NOW CLOSED. UH, ARE THERE ANY ANNOUNCEMENTS? [ANNOUNCEMENTS] NO. ANNOUNCEMENTS. SUPER. UH, ANY, UH, ANY COMMISSIONER ANNOUNCEMENTS? OKAY, PERFECT. SO IN THAT CASE, 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.