Feb 05, 2026 Utilities Commission

WE HAVE A QUORUM.

THANK YOU FOR THE RECORD.

COMMISSIONER AUSTIN IS EXCUSED FROM THE FEBRUARY 5TH BOARD MEETING.

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

[CONSENT CALENDAR]

CALENDAR.

UH, DO I HAVE A MOTION TO APPROVE THE CONSENT

[1. 26-54093 Recommendation to approve January 22, 2026 Board meeting minutes. Suggested Action: Approve recommendation. ]

CALENDARS? ITEM

[2. 26-54100 Recommendation to approve Transfer of Funds for February 5, 2026. Suggested Action: Approve recommendation. ]

ONE AND TWO, I SECOND.

SO ONTO THE REGULAR AGENDA.

UH, ANY PUBLIC COMMENTS? ALL THOSE IN FAVOR SAY AYE.

[3. 26-54094 Recommendation to adopt Resolution No. UT-1546 authorizing an amendment to the terms of compensation for the General Manager. Suggested Action: Approve recommendation. ]

ITEM NUMBER THREE, ADOPT RESOLUTION NUMBER UT 1 5 4 6.

AUTHORIZE IN AN INDI AN AMENDMENT TO THE TERMS OF COMPENSATION FOR THE GENERAL MANAGER.

UH, MAY I PLEASE HAVE A MOTION? SO MOVED.

THANK YOU ON JAIME GARCIA.

GOOD MORNING COMMISSIONERS.

UH, TODAY I'M HERE TO PRESENT THIS, UH, ITEM IN FRONT OF YOU ON EX FIRST WE'LL START OFF WITH THE EXECUTIVE SUMMARY ON DECEMBER 18TH, 2025, JANUARY 8TH, 2025, AND I'M SORRY, JANUARY 8TH, 2026.

JANUARY 22ND, 2026.

THE BOARD MET IN CLOSE SESSION TO CONDUCT A PERFORMANCE EVALUATION FOR AND COMPENSATION ANALYSIS OF CURRENT GENERAL MANAGER BE AND HIS SOLE FILE GOT AS A RESULT OF SUCH EVALUATION.

THE BOARD PROPOSES THAT THE GENERAL MANAGER RECEIVE A SALARY INCREASE EQUAL TO 4%, RESULTING IN AN INCREASED TOTAL SALARY, ANNUAL SALARY EQUAL TO $347,741 AND 21 CENTS.

IN ADDITION, THE GENERAL MANAGER SO SHALL RECEIVE A ONE-TIME INCENTIVE PAYMENT OF $9,000 TO BE PAID OUT IN ADDITION TO THE SALARY INCREASE.

NO OTHER TERMS OF THE GENERAL MANAGER'S CURRENT COMPENSATION AND BENEFIT PACKAGE SHALL CHANGE.

RECOMMENDATION IS TO ADOPT RESOLUTION NUMBER UT 1546 AND AMENDMENT TO THE TERMS OF COMPENSATION FOR THE GENERAL MANAGER, OH, I'M SORRY, AUTHORIZING AN AMENDMENT TO THE TERMS OF COMPENSATION TO THE, FOR THE GENERAL MANAGER.

HAPPY TO ANSWER ANY QUESTIONS.

THANK YOU, JAIME.

ARE THERE ANY PUBLIC COMMENTS? ANY COMMISSIONER COMMENTS? THANK YOU.

THANK YOU JAIME.

UH, JAINA, MAY WE PLEASE HAVE A ROLL CALL.

VOTE VICE PRESIDENT CORDERO IS NOT PRESENT.

SECRETARY PARKIN.

COMMISSIONER MCGUIRE? YES, COMMISSIONER AUSTIN IS ABSENT PRESENT.

SCOTT, THANK YOU.

SO THE RESOLUTION PASSES AND MOVING ON TO AGENDA ITEM

[4. 26-54096 Recommendation adopt Resolution No. UT-1547 authorizing the General Manager to execute contracts, and any necessary subsequent amendments, with National Auto Fleet Group for the purchase of electric medium-duty and light-duty vehicles on the same terms and conditions specified in the Sourcewell Cooperative Purchasing Agreement, in a total amount not to exceed $990,000, in quantities not to exceed those identified in the Fiscal Year 2026 and Fiscal Year 2027 fleet replacement plan, until the contract expire on November 13, 2029, with an option to renew as long as the Sourcewell contract is in effect, at the discretion of the General Manager. Suggested Action: Approve recommendation. ]

NUMBER FOUR, DR.

RESOLUTION NUMBER UT 1 5 4 7 AUTHORIZING THE GENERAL MANAGER TO EXECUTE CONTRACTS AND ANY NECESSARY SUBSEQUENT AMENDMENTS WITH NATIONAL AUTO FLEET GROUP FOR THE PURCHASE OF ELECTRIC, MEDIUM DUTY AND LIGHT DUTY VEHICLES.

IN ORDER FOR THE DISCUSSION PRESENTATION, MAY I PLEASE HAVE A MOTION? SO MOVED.

DUTY TRUCK TO KIND OF DO THE 50 50 OFFSET SO THAT WE DON'T HAVE TO, UM, WORRY ABOUT THIS MARKET BEING MATURE.

UH, CALL T SANG PRESENTATION.

GOOD MORNING, PRESIDENT SCOTT AND COMMISSIONERS.

UM, FOR THIS ITEM, I WILL, UM, I HAVE A SHORT PRESENTATION IS TO REQUEST ADVANCE AUTHORIZATION TO PURCHASE PLAN FY 26 AND FY 26 LIGHT AND MEDIAN DUTY VEHICLES.

SO, JUST REAL QUICK, THE OUTLINE OF THIS PRESENTATION, TRYING TO GET USED TO THIS MIC POSITION, UM, I WANNA TAKE THE OPPORTUNITY TO ACTUALLY PROVIDE A LITTLE UPDATE ON THE ACTUAL ADVANCED CLEAN FLEET REGULATION, UM, SPECIFICALLY SOME OF THE RECENT CHANGES TO THE CLEAN FLEET REGULATION.

UM, AND THEN GO OVER THE PLAN FLEET PURCHASES FOR FY 26 AND 27 AND HOW THAT IS PLAYING OUT.

AND THEN HOW THE DEPARTMENT IS PLANNING TO MEET THESE REPLACEMENT MEETS WHILE MEETING THE A CF, THE ADVANCED CLEAN FLEET COMPLIANCE REGULATION.

AND THEN FINALLY, WITH THE STAFF RECOMMENDATION.

SO REAL QUICK, THE ORIGINAL ADVANCED CLEAN FLEET REGULATION STATED THAT 50% OF THE ANNUAL VEHICLE PURCHASES HAVE TO BE ZERO EMISSION VEHICLES BEGINNING AS EARLY AS 2024 THROUGH 2026 IN THE CATEGORY OF MEDIUM AND HEAVY DUTY VEHICLES.

SO BASICALLY ANY VEHICLE WITH A GROSS VEHICLE WEIGHT RATING OF 8,500

[00:05:01]

POUNDS OR MORE.

SO TO GIVE YOU A FRAME OF REFERENCE LIKE AN F TWO 50, UH, FOUR F TWO 50 WOULD BE CONSIDERED A MEDIUM DUTY VEHICLE BECAUSE OF ITS PAYLOAD CAPACITY.

AND THEN A HEAVY DUTY VEHICLE WOULD BE ONE OF OUR DUMP TRUCKS OR A SEWER CLEAN TRUCK, WHICH WE'LL BE TALKED ABOUT A LITTLE LATER.

UM, AND THEN AFTER BEGINNING JANUARY 1ST, 2027, A HUNDRED PERCENT OF THE VEHICLES PURCHASES IN THE MEDIUM AND HEAVY DUTY CATEGORY HAS TO BE ZERO EMISSION VEHICLES.

NOW, IN LATE 2025, THE CALIFORNIA AIR RESOURCES BOARD UPDATED AN AMENDMENT TO DYSREGULATION.

BASICALLY THEY EXTENDED THIS REQUIREMENT BY THREE YEARS.

SO THE 100% ZERO EMISSION VEHICLE REQUIREMENT HAS BEEN DELAYED UNTIL JANUARY 1ST, 2030.

AND SO THIS WILL CHANGE OUR PLANNED PURCHASES FOR OUR 10 YEAR VEHICLE PLAN.

SO WE'LL BE UPDATING THAT, THAT WON'T BE PART OF THIS PRESENTATION, BUT I JUST WANTED TO PUT THAT OUT THERE AS SOMETHING THAT IS COMING.

SO FOR THIS ITEM, WHY ARE WE ASKING FOR ADVANCED AUTHORIZATION? UM, AND I APOLOGIZE IN THE PRESENTATION, YOU'LL HEAR ME, I'M TALKING ABOUT EVS AND Z EVS.

SO EVS IS ELECTRIC VEHICLES, ZV IS ZERO EMISSION VEHICLES.

I USE IT INTERCHANGEABLY, BUT IT'S TECHNICALLY THE EV IS ONLY ONE OF A ONE TYPE OF ZERO EMISSION VEHICLES.

YOU COULD HAVE A HYDROGEN CAR THAT'S ALSO CONSIDERED A ZERO EMISSION VEHICLE, A NATURAL GAS.

UM, A LIQUIFIED NATURAL GAS VEHICLE IS ACTUALLY NOT CONSIDERED A ZERO EMISSION VEHICLE.

IT'S CONSIDERED AN ULTRA LOW EMISSION VEHICLE, BUT IT'S NOT A ZERO EMISSION VEHICLE.

SO THAT'S KIND OF THE, UH, KIND OF THE DEFINITIONS.

AND SO EV AVAILABILITY IS LIMITED AND IS TIME SENSITIVE.

AND WITH RECENT CHANGES WITH THE FEDERAL ADMINISTRATION, THAT HAS REALLY TURNED THE EV MARKET INTO A BIG SCRAMBLE.

UM, AND SO, UM, WE ARE CLOSELY WATCHING WHEN EVS ARE AVAILABLE IN THE MEDIUM DUTY CATEGORY MANUFACTURE, GOVERNMENT ORDERING WINDOWS OPEN AND CLOSE REALLY QUICKLY.

SO WHAT THIS IS, IS TYPICALLY PEOPLE WANTING TO BUY A VEHICLE WOULD JUST GO TO A DEALERSHIP TO THE CAR LOT AND SAY, HEY, I'M LOOKING FOR THIS TYPE OF VEHICLE.

BUT IN GOVERNMENT FLEET, PROCUREMENT MANUFACTURERS WILL ACTUALLY SET ASIDE CERTAIN AMOUNT OF VEHICLES TO OFFER TO GOVERNMENTS AT A REALLY REDUCED RATE.

BUT THEY OPEN THOSE WINDOWS WITHOUT KIND OF ANNOUNCEMENT.

GENERALLY IT'S IN NOVEMBER, BUT BECAUSE OF COVID AND ALL THE SUPPLY CHAIN ISSUES, THOSE WINDOW WHEN THEY OPEN AND CLOSE WE'RE KIND OF ALL OVER THE PLACE IN THE LAST COUPLE YEARS AND WE COULD NOT PREDICT IT.

AND SO, UM, WHEN THESE GOVERNMENT PROCUREMENT WINDOWS OPEN AND CLOSE IS, IS KIND OF A GUESSING GAME, WE TRY TO CONTINUE TO WORK WITH DEALERSHIPS TO FIND OUT WHEN THEY'RE GONNA OPEN IF THEY'RE NOT OPEN, THE ALTERNATIVE WITHIN TO BE ACTUALLY PUT OUT A BID AND ACTUALLY BID FOR A VEHICLE THAT'S CURRENTLY ON THE LOT FOR ONE OF THE, UH, ONE OF THE DEALERSHIPS.

AND THEN SECONDLY, BOARD MEETING SCHEDULES MAY NOT ALIGN WITH THE AVAILABILITY.

SO WHEN THE GOVERNMENT WINDOW OPENS, UM, WE MAY NOT BE IN THE POSITION BECAUSE OF THE BOARD MEETING SCHEDULES.

UM, SO THERE'S TIMING FACTORS ASSOCIATED WITH THAT.

SO WE ARE REQUESTING ADVANCED AUTHORIZATION TO AVOID THE LOSS OF THE ALLOCATION WHEN IT BECOMES AVAILABLE, UM, SO THAT WE CAN MEET THAT NEED.

SO IN TERMS OF OUR COMPLIANCE STRATEGY, UM, AS I MENTIONED, 50 50, RIGHT? 50% OF THE VEHICLES WE PURCHASED BETWEEN NOW UNTIL JANUARY 1ST, 2030 IN THE MEDIUM HEAVY DUTY CATEGORY HAS TO BE ZERO EMISSIONS IN THE HEAVY DUTY CATEGORY.

THE VEHICLES LACK AVAILABILITY IN THE ELECTRIC VEHICLE OR ZERO EMISSION MARKET.

UM, THAT AREA HAS NOT MATURED YET.

IT'S COMING ALONG.

UM, BUT MOST OF THE HEAVY AND MEDIUM DUTY ELECTRIC VEHICLES OR ZERO EMISSION VEHICLES HAVE BEEN IN THE AREA OF, UM, EITHER DREAD TRUCKS, SO SEMI TRUCKS CLASS EIGHT, OR IN THE BIG CARGO VANS LIKE UPS AND AMAZON, AND NOT NECESSARILY FOCUSED ON CONSTRUCTION DUMP TRUCKS AND SEWER CLEANING TRUCKS AND SO ON.

AND SO THE AVAILABILITY OF EVS IN THE HEAVY DUTY MARKET FOR US, BUT WHAT WE DO IS QUITE LIMITED.

SO WHAT WE THEN TRY TO DO THEN IS WE'LL GO OUT TO BID AND TRY TO PURCHASE A TRADITIONAL INTERNAL COMBUSTION ENGINE FOR THE HEAVY DUTY VEHICLE, WHICH HAVE PROVEN RELIABILITY FOR US.

WE'VE BEEN USING IT FOR YEARS.

UM, AND THEN OFFSET IT WITH A MEDIUM

[00:10:01]

NOW, EV PURCHASES HAVE TO BE ALIGNED WITH THE HEAVY DUTY PURCHASES, UM, BECAUSE THEY NEED TO BE ORDERED IN THE SAME CALENDAR YEAR, AND I'LL GET INTO THAT A LITTLE BIT LATER.

UM, SO AGAIN, THE ADVANCED AUTHORIZATION HELPS US KEEP COMPLIANCE AND OPERATIONS ALIGNED.

SO OVERVIEW OF THE PLAN FY 26 PURCHASES IN FY 26.

WE PLAN TO PURCHASE SEVEN OR 13 VEHICLES, SIX IN THE HEAVY DUTY CATEGORY OR HDV AND SIX IN THE ELECTRIC, ELECTRIC MEDIUM DUTY CATEGORY, OR WHAT I CALL EM DVS.

AND THEN WE DO HAVE ONE LIGHT DUTY VEHICLE.

NOW THE LIGHT DUTY VEHICLE DOES NOT, UM, HAVE TO COMPLY WITH A-C-F-H-C-F DOES NOT APPLY.

SO THIS COULD BE A LITTLE MAVERICK TRUCK OR IT COULD BE A LITTLE, UM, SUV.

AND SO WE ARE PLANNING TO BUY SIX HEAVY DUTY VEHICLES.

SO TWO CLEANING TRUCKS, ONE 10 WHEEL DUMP TRUCK, UM, TWO SIX WHEEL DUMP TRUCKS, AND THEN ONE STREET SWEEPER.

AND SO THOSE WILL BE TRADITIONAL INTERNAL COMBUSTION ENGINES.

AND THEN TO OFFSET THAT 50 50, WE'RE PLANNING TO BUY SIX MEDIUM DUTY ELECTRIC VEHICLES.

AND SO WE'RE GONNA LOOK FOR HOPEFULLY, UM, EITHER CHEVY SILVERADOS OR FORD TRANSIT, UM, ELECTRIC VANS.

AND I DUNNO IF YOU HEARD RECENTLY, FORD HAS ACTUALLY DISCONTINUED THE, THE MANUFACTURING OF THE F-150 LIGHTNING.

SO THAT TOOK US INTO A, WE ARE SPIN, SO WE'RE LOOKING FOR ALTERNATIVES RIGHT NOW.

THANKFULLY CHEVY SILVERADO IS STILL AVAILABLE.

SO WE'RE, WE'RE HOPING TO DO THAT, THAT, UM, ALTERNATIVELY WE WE'RE TRYING TO AVOID LOOKING AT SOME OF THE MORE EXPENSIVE, UM, MEDIUM DUTY TRUCKS, OR WE MAY HAVE TO SHIFT AND LOOK AT BUYING SOME CARGO VANS INSTEAD.

AND THEN WE DO HAVE ONE, UH, SMALL LIGHT DUTY TRUCK THAT WE'RE GONNA BUY FOR DEAN'S TEAM.

'CAUSE YOU KNOW, THEY DON'T WANNA, THEY HAVE TO GO MAKE SURE THAT THE, THE, UH, LONG GARDEN CONVERGENCE ARE ACTUALLY ACTUALLY HAPPENING.

SO IN TERMS OF FY 27, OH, SORRY, LEMME ONE STEP BACK.

SO IN TERMS OF THE PURCHASES OF THESE TRUCKS, UM, THE LIGHT AND MEDIUM DUTY, WE ANTICIPATE WE HAVE PLANNED FOR 240,000 OUT OF THE SEWER FUND.

AND THEN THE WATER FUND IS 290,000.

UM, AND AGAIN, THIS IS JUST FOR THE, THE, UH, THE EVS, THE LIGHT AND MEDIUM DUTY VEHICLES.

IN TERMS OF FI 27, WE HAVE FIVE HEAVY DUTY WITH A FIVE ELECTRIC MEDIUM DUTY OFFSET.

AND THEN WE DO HAVE TWO LIGHT DUTY VEHICLES THAT ARE PLANNED, UM, FOR FY 27.

AND SO WITH THAT, THE SEWER FUND BUDGET IS, UM, FOR, FOR THE ELECTRIC MEDIUM DUTY AND THE LIGHT DUTY SEWER FUND IS 80,000 AND THE WATER FUND IS 380,000.

SO THIS IS NOT THE HEAVY DUTY BUDGET.

THE HEAVY DUTY BUDGET IS SHOWN HERE.

FOR EXAMPLE, THE FREIGHTLINER CLEANING TRUCK IS BUDGETED AT 450,000, BUT I, FOR THIS REQUEST IS ONLY FOR THE, UM, MEDIUM DUTY AND THE LIGHT DUTY.

THE NEXT AGENDA ITEM, WE WILL TALK ABOUT THE HEAVY DUTY AND MICHAEL HERBA WILL BE PRESENTING THAT.

SO AGAIN, SEWERS PLANNING TO PURCHASE, UM, HEAVY DUTY VEHICLES ACROSS FY 26 AND 27.

WHAT THEY WOULD LIKE TO DO IS THEY LIKE TO COMBINE THE PROCUREMENT OF, UM, THEIR CLEANING TRUCKS TO IMPROVE PRICING AND EFFICIENCIES.

AND THEN THESE LARGE CLEANING TRUCKS HAVE LONG DELAY DELIVERY TIMES.

AND SO THEY DO WANT TO GET IT INTO THE QUEUE WITH THESE MANUFACTURERS SO THAT THEY CAN BEGIN THE PROCESS.

SO EVEN THOUGH THEY MAY BE ORDERING IT SOON, IT WILL TAKE A YEAR BEFORE THEY'LL ACTUALLY GET THE VEHICLES.

BUT THE EV OFFSET MUST BE ALIGNED WITH THE ACTUAL HEAVY DUTY, UM, VEHICLE REPLACEMENT.

AND SO THAT IS A KEY NUANCE, RIGHT? SO THE A CF COMPLIANCE IS TRIGGERED BY THE ORDER DATE.

IT'S NOT WHEN YOU ACTUALLY RECEIVE THE VEHICLES.

'CAUSE THEY REALIZE THAT YOU MAY BE RECEIVING THE SILVERADO SOONER THAN A HEAVY DUTY CLEANING TRUCK.

AND SO THE WAY THEY PAIR THE 50 50 RULE IS, IS THE YEAR YOU ORDER IT AND IT'S BASED ON A CALENDAR YEAR, SO THEN NOT A FISCAL YEAR.

AND SO WHEN WE ORDER HEAVY DUTY VEHICLES, WE HAVE TO PREPARED TO ORDER THE, THE, UH, ELECTRIC MEDIUM DUTY VEHICLES TO CREATE

[00:15:01]

THAT OFFSET.

SO AGAIN, SEWER PLANS TO PURCHASE FOUR CLEANING TRUCKS.

TWO ARE PLANNED FOR FY 26 AND TWO ARE PLAN FOR FFY 27.

UM, IF THEY ORDER THE FY 26 NOW, WE MUST ORDER THE EVS, UM, AS A PAIR.

AND SO ADVANCED AUTHORIZATION TO ALLOW US TO ORDER THESE EVS FOR FY 27 WILL ALLOW US TO STAY IN COMPLIANCE WITH THE REGULATIONS REGARDLESS OF THE DELIVERY TIMING.

IN TERMS OF THE PROCUREMENT APPROACH, WE PLAN ON USING THE SOURCE WELL COOPERATIVE AGREEMENT WITH NATIONAL AUTO FLEET AND THIS WILL THEN GIVE US ACCESS TO THE GOVERNMENT PROCUREMENT WINDOW WHEN IT'S AVAILABLE.

SO WE CAN GO ON THERE AND ORDER AND SPEC OUT WHAT WE NEED.

UM, AND THEN THIS TYPE OF PROCUREMENT IS APPROVED WHEN AUTHORIZED BY RESOLUTION.

SO WITH THAT STAFF DOES RECOMMEND THE BOARD AUTHORIZED AGENDA ITEM NUMBER FOUR.

UM, I'D BE HAPPY TO ANSWER ANY QUESTIONS THAT YOU MAY HAVE AT THIS TIME.

THANK YOU, TAY.

EXCUSE ME, ARE THERE ANY PUBLIC COMMENTS AND ANY COMMISSIONER COMMENTS? JUST THANK YOU TY.

YOU'RE SO GOOD AT EXPLAINING COMPLICATED THINGS.

UH, I THINK ADVANCED AUTHORIZATION, UH, ALLOWS THE TEAM TO BE MORE NIMBLE AND, UH, I THINK THIS IS A GREAT IDEA.

COMMISSIONER MCGUIRE? YES, PRESIDENT SCOTT.

ALRIGHT, UM, DINA, SINCE THIS IS A RESOLUTION, MAY I PLEASE HAVE A ROLL CALL? VOTE SECRETARY PARKIN.

[5. 26-54101 Recommendation to adopt Specifications WD-16-24 for the Large Potable Water Valve Replacement Project – Orange Avenue & 57Th Street, Wardlow Road & Woodruff Avenue, Stearns Street & Palo Verde Avenue / De Ora Way, El Dorado Park (EO-3674), award a contract to Toro Enterprises, Inc. in total contract amount not to exceed $2,353,100, and authorize the General Manager to execute all documents necessary to enter into the contract, including any necessary subsequent amendments. Suggested Action: Approve recommendation. ]

ADOPT SPECIFICATIONS WD 1 6 24 FOR THE LARGE POTABLE WATER VALVE REPLACEMENT PROJECT, ORANGE AVENUE AND 57TH STREET, WARDLOW ROAD AND WOODRUFF AVENUE, STERN STREET, AND PALO PALO VERDE AVENUE, THE OR WAY, EL DORADO PARK.

UH, E OH 3 6 7 4 WARD OF CONTRACT TO TORO ENTERPRISES INC.

UH, FOR THE PRESENTATION, MAY I PLEASE HAVE A MOTION? THANK YOU.

AND A SECOND.

SECOND, THANK YOU ON ROB ELLI.

GOOD MORNING, UH, PRESIDENT SCOTT, AND GOOD MORNING COMMISSIONERS.

THE ITEM I HAD BEFORE YOU THIS MORNING IS FOR ONE OF OUR LARGE VALVE REPLACEMENT PROJECTS, AND AS PART OF OUR CIP UH, PLAN, UH, I HAVE A SHORT PRESENTATION, UH, PREPARED FOR YOU TO GIVE YOU SOME BACKGROUND INFORMATION ON THE PROGRAM ITSELF AND MORE DETAILS ON THE PROJECT SPECIFICALLY.

SO OUR LARGE VALVE REPLACEMENT PROGRAM IS INTENDED TO REMOVE INOPERABLE AND AGING LARGE GATE VALVES AND REPLACE THEM WITH NEWER BUTTERFLY VALVES.

UH, THE, THE PICTURE HERE IN THE CENTER IS A GATE VALVE THAT WAS REMOVED ON A PREVIOUS PROJECT.

UH, AS YOU CAN SEE, THE FOOTPRINT OF THIS VALVE IS PRETTY LARGE.

UH, IT'S AS BIG A PERSON.

UM, AND SOME OF THESE VALVES ARE VERY OLD.

UH, SOME OF THEM HAVE BEEN INSTALLED IN THE 1940S.

UM, THE PROGRAM ITSELF ALSO IMPROVED SYSTEM RELIABILITY AND RESTORE OPERATIONAL FUNCTIONALITY.

NOW, VALVES ARE A CRITICAL COMPONENT OF OUR WATER SYSTEM.

UM, IT ALLOWS US TO ISOLATE PIPE SECTIONS, UH, FOR REPAIR, UH, AND FOR REPLACEMENT.

SO THIS IS ESPECIALLY CRITICAL WHENEVER WE HAVE A MAIN BREAK, UH, WE NEED TO ISOLATE THAT PIPE SECTION AND WE DO SO BY OPERATING VALVES.

NOW, IF THE VALVES ARE NOT OPERATIONAL, THAT MEANS WE WOULD HAVE TO EXPAND A SHUTDOWN AREA IN ORDER TO ISOLATE, UH, THAT PIPE SECTION.

AND THAT COULD MEAN MORE IMPACT TO OUR CUSTOMERS.

SO LARGE VALVES ARE CONSIDERED 14, UH, GREATER THAN 14 INCHES IN SIZE, AND WE HAVE 762 LARGE VALVES IN OUR POTABLE WATER SYSTEM.

AND JUST TO GIVE YOU SOME MORE CONTEXT, UH, WE HAVE A TOTAL OF 23,680 VALVES IN OUR SYSTEM TOTAL.

SO I HAVE SOME SHORT VIDEO CLIPS TO SHOW, UM, HOW THESE VALVES WORK.

UM, SO CAN YOU HELP OUT WITH THE FIRST, SO THIS IS A BUTTERFLY VALVE.

UH, YOU CAN SEE THE FOOTPRINT OF THE VALVE IS MUCH SMALLER.

UM, AND IT HAS A DISC THAT ROTATES, UH,

[00:20:01]

WITHIN THE VALVE.

SO IF THE DISC IS PERPENDICULAR TO THE FLOW, THAT MEANS THE VALVE IS CLOSED.

AND IF IT'S PARALLEL, THAT MEANS THE VALVE IS OPEN.

UM, BESIDES THE SMALLER FOOTPRINT, UM, IT TAKES ABOUT 40 TO 50 TURNS, UH, TO OPEN AND CLOSE THE, UH, BUTTERFLY.

IN COMPARISON.

UH, ON THE LEFT WE HAVE A GATE VALVE, WHICH HAS A PLATE THAT GOES UP AND DOWN AS THE VALVE IS OPERATED.

UM, SO ONCE THE GATE IS ALL THE WAY UP, THAT MEANS IT'S OPEN, AND ONCE THE GATE IS LOWER, THE VALVE IS CLOSED.

UM, FOR COMPARISON PURPOSES, SOME OF OUR GATE VALVES, IT'S NOT UNCOMMON TO HAVE 100 TO 120 TURNS, UH, IN ORDER TO OPEN AND CLOSE A VALVE.

SO YOU CAN IMAGINE DURING A MAIN BREAK, IF YOU HAVE TO MANUALLY OPERATE A VALVE, THAT COULD TAKE SOME TIME.

UH, SO OUR VALVE OPERATIONS CREWS HAVE, UH, MECHANICAL DEVICES THAT DO ASSIST IN OPERATING VALVES, BUT AGAIN, MANUALLY, YOU KNOW, 120 IS 50 IS QUITE A DIFFERENCE.

AND, UM, THAT IMPACTS THE RESPONSE TIME WHENEVER THERE'S, SO FOR THIS PROJECT, WE ARE REPLACING 1 36 INCH GATE VALVE, TWO 30 INCH, UH, GATE VALVE AND 20 INCH, UH, GATE VALVE WITH A NEW MOTOR, FIVE VALVE THE SAME SIZE.

UH, WE ARE ALSO REPLACING A SIX INCH POTABLE, UH, GATE VALVE IN KIND.

UH, AND WE ARE REPLACING SOME PIPELINE, UH, ABOUT 76 FEET OF VARIOUS, UH, SIZE, UH, SIX TO, UH, THERE WILL BE SOME TRAFFIC CONTROL AT, UH, ALL THE LOCATIONS AND THE VALVES TO BE REPLACED.

UH, WERE INSTALLED, UH, BETWEEN 1948 AND 1962, AND THE ANTICIPATED START OF CONSTRUCTION IS APRIL OF THIS HERE.

SO THESE ARE JUST, UM, AERIAL MAPS OF THE FIVE DIFFERENT LOCATIONS.

UH, THE FIRST LOCATION IS ORANGE AVENUE AND 57TH STREET.

UH, THE VOW TO BE REPLACED IS THIS RED DOT RIGHT HERE.

UH, THAT'S LOCATION IS WARDLOW ROAD AND WOODRUFF AVENUE.

UH, WE HAVE A LOCATION AT STERN STREET AND CAL VERDE AVENUE.

UH, THIS IS STERN STREET AND THE ORA WAY.

AND THIS IS JUST SOUTH OF STERNS CHAMPION PARK.

AND THE LAST LOCATION IS A LOCATED WITHIN EL DORADO PARK.

UH, THIS IS THE CORNER WHERE I BELIEVE IT'S CALLED FRONTIER LAND IS LOCATED.

WE HAVE THAT TRAIN RIDE PARK.

SO OBVIOUSLY THERE'S SOME COORDINATION EFFORTS THAT ARE BEING DONE, UH, AHEAD OF THE START OF CONSTRUCTION.

UH, WE'VE BEEN IN CONTACT WITH LONG BEACH UNIFIED SCHOOL DISTRICT, UH, THE COUNCIL DISTRICT, AS WELL AS PARKS, PARKS AND REC, UH, FOR THIS PARTICULAR LOCATION.

UM, I ALSO JUST WANNA NOTE COMMISSIONERS THAT DURING LAST DECEMBER RETREAT, ONE OF OUR BUSINESS PLAN GOALS IS TO DO MORE IN-HOUSE CONSTRUCTION MANAGEMENT AND INSPECTION.

UH, THIS PARTICULAR PROJECT, WE WILL BE DOING ALL IN-HOUSE CONSTRUCTION MANAGEMENT.

AND SO, UH, ON DECEMBER 10TH OF, UH, LAST YEAR, WE RECEIVED 12 BIDS, UH, THAT WERE RECEIVED AND OPENED.

UH, UH, AND THE BID TABULATION THAT'S ATTACHED TO THE BOARD LETTER, UH, THE LOWEST RESPONSE BID WAS SUBMITTED BY TORO ENTERPRISES, INCORPORATED IN THE AMOUNT OF $2,353,000 AND WAS FOUND TO BE IN CONFORMANCE WITH THE BID DOCUMENTS.

UM, JUST FOR, UM, COMMISSION COMMISSION'S INFORMATION.

UH, WE HAVE PREVIOUSLY WORKED WITH TOURO ENTERPRISES ON OTHER PROJECTS, SO, UH, IT'S A CONTRACT.

SO WITH THAT, UH, THE RECOMMENDATION IS TO ADOPT SPECIFICATIONS WD 1624 FOR THIS PROJECT AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE ALL DOCUMENTS NECESSARY, UH, TO ENTER INTO THE CONSTRUCTION CONTRACT, INCLUDING ANY NECESSARY SUBSEQUENT AMENDMENTS.

UH, THAT CONCLUDES MY REPORT.

UH, I'LL BE HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE.

THANK YOU, ROB.

UH, DO WE HAVE ANY PUBLIC COMMENTS? THANK YOU.

ANY COMMISSIONER COMMENTS? YES, SIR.

ROBERT, THANK YOU.

UM, I KNOW IF YOU PUT TWO ATTORNEYS IN THE ROOM,

[00:25:01]

YOU WON'T GET THE SAME ANSWER, BUT I THOUGHT WITH TWO ENGINEERS IN THE ROOM, IT'D BE CLOSER.

I WAS LOOKING AT YOUR ENGINEERING ESTIMATE, IT'S LIKE A MILLION $100,000 DIFFERENCE.

DOES THAT GIVE YOU ANY PAUSE OR WHICH ONE? WHICH ONE'S? RIGHT.

YOU KNOW WHAT I MEAN? SO, UM, WE DID, UH, CONFER WITH OUR DESIGN ENGINEER REGARDING THE ENGINEER ASSESSMENT AND THE DISCREPANCY BETWEEN THE ESTIMATE AND THE, UH, LOW BID.

UM, AND WE DID OUR RESEARCH IN TERMS OF THE INDIVIDUAL BID ITEMS. UH, THE MAIN FACTOR THAT IS DRIVING UP THE ENGINEER ASSESSMENT AND THEY WERE BEING CONSERVATIVE WITH THEIR ESTIMATE IS PAVEMENT RESTORATION.

SO, UH, PUBLIC WORKS, UH, HAS A NEW PAVEMENT RESTORATION STANDARD, WHICH I BELIEVE HASN'T BEEN DISSEMINATED YET TO, UH, THE CITY, BUT OUR DESIGN ENGINEER TOOK THAT INTO CONSIDERATION WHEN PUTTING TOGETHER THE ESTIMATE THAT THERE MAY BE ADDITIONAL, UH, PAYMENT REQUIREMENTS, UH, FOR THE PROJECT.

SO THAT'S THE MAIN DRIVER OF THE DIFFERENCE BETWEEN THE ESTIMATE AND, AND THE, UH, LOW BID.

SO, SO THE CURRENT BID IS, IS BASED UPON THE PREVIOUS SPECS FOR ROAD RE PAVEMENT, AND IF THAT CHANGES, THEN THERE'D BE A CHANGE ORDER TO THIS BECAUSE I'M SURE IT'S MUCH MORE EXPENSIVE POTENTIALLY.

UH, I HAVE NO QUESTION.

OH, I'M SORRY.

I, I THINK IN YOUR CONVERSATION RIGHT NOW, THERE'S A COUPLE OF ELEMENTS THAT ARE IMPORTANT.

ONE IS THIS ASPECT OF PAVING AND WHERE THIS JOB MATERIALLY CAN HAVE CERTAIN BOUNDARIES ON ITS COST ESTIMATE THAT ARE WELL UNDERSTOOD, THEN THE PAVING ITSELF MAY NOT, UH, GIVEN IF IT'S IN AN INTERSECTION GIVEN PROTECTION OF UTILITIES GIVEN COMPLEXITIES, IT WILL SIGNIFICANTLY EXTEND BEYOND WHAT IS KNOWN AND UNDERSTOOD TO BE THE STANDARD VALVE REPLACEMENT JOB.

THE SECOND ASPECT OF IT IS, I THINK SOMETHING THAT IS INHERENTLY ALWAYS, UH, AN IMPORTANT QUESTION TO UNDERSTAND THE DETAIL, WHICH IS WHAT IS THE INTERACTION BETWEEN AN ENGINEER'S ESTIMATE AND A PUBLICLY BID PROJECT? AND SO MANY A TIMES THE ENGINEER'S ESTIMATE IS A GOOD FAITH EFFORT OFF OF WHICH THEN MARKET FORCES REACT, UNDERSTANDING WHAT ARE THOSE FACTORS, AND THEN BEING ABLE TO HAVE THOSE IN A DIALOGUE WHERE STAFF REPRESENTS TO YOU THEIR UNDERSTANDING PERHAPS OF WHAT HAS HAPPENED, UH, TO THE BIDS.

ALL OF THAT PERHAPS CAN LEND ITSELF TO A COMMITTEE PRESENTATION, UM, WITH THE PLANNING COMMITTEE, UH, WHERE ENGINEERING REPORTS TO AND GIVE SOME BACKGROUND ON THAT BECAUSE A, A LOT OF THINGS CAN GO INTO IT.

I THINK OVER THE YEARS IT'S BEEN EXPLAINED TO ME, CONTRACTORS COMING OFF A JOB NOT MORE THAN THREE MILES AWAY, THE EQUIPMENT'S READILY AVAILABLE, THE MOBILIZATION COSTS DRAMATICALLY DROP.

UM, SOMETIMES, UNFORTUNATELY GOES THE OTHER WAY, RIGHT? THINGS ARE DRAMATICALLY MORE EXPENSIVE THAN AN ENGINEER'S ESTIMATE, AND IT'S JUST THE MARKET, THE LABOR CHANGES, AVAILABILITY OF CONTRACTORS, AND ALL OF A SUDDEN YOU GET A DRAMATIC SHIFT AND YOU SEE SOMETHING INCREASING.

IT'S IMPORTANT TO UNDERSTAND THAT THOSE THINGS CAN HAPPEN, HOW THEY HAPPEN, AND THEN PERHAPS A CONVERSATION BETWEEN STAFF AND THE BOARD CAN TAKE PLACE.

I THANK YOU FOR THAT.

I, I THINK THAT MY CONCERN, WELL, IT'S OVER 30% DIFFERENCE BETWEEN, ON A $3 MILLION PROJECT.

I MEAN, THAT'S, TO ME SIGNIFICANT.

AND SO I DON'T KNOW IF YOU HAVE THE CONVERSATION WITH THEM ABOUT THE CONDITIONS OR THE ROAD PAVEMENT REQUIREMENTS, WHATEVER THOSE ARE BEFOREHAND.

AND I DON'T DUNNO HOW YOU PLAN FOR THAT, BUT YEAH.

IF THE CITY DOES ADOPT DIFFERENT STANDARDS, DOES IT APPLY IMMEDIATELY? DO, IS THERE A GRACE PERIOD FOR CONTRACTS THAT ARE ALREADY LET OR HOW DOES THAT WORK? THAT HAS TO BE DETERMINED, UH, COMMISSIONER PARKING.

SO I, I THINK WE CAN HAVE THAT DISCUSSION AT PLANNING COMMITTEE AS WELL.

ENGINEER CAN GIVE YOU AN OVERVIEW OF WHAT ARE THE CHANGES EXPECTED AND THE DIALOGUE THAT WE'RE HAVING WITH PUBLIC WORKS AT THE TIME.

MM-HMM .

THANK YOU FOR THE CLARIFICATION.

SO THE CHAIR WILL CALL THE VOTE.

ALL THOSE IN FAVOR, PLEASE SAY AYE.

ANY OPPOSED? ALL RIGHT.

THANK YOU ROB.

ITEM NUMBER SIX, AUTHORIZE THE GENERAL MANAGER TO EXECUTE A CHANGE ORDER TO CONTRACT NUMBER 3 2 5 0 1 1 8 8 WITH TORRES SANITATION INC.

TO COVER INCREASED LABOR AND MATERIAL COSTS FOR THE BROADWAY COURT SEWER LATERAL REPAIRS PROJECT.

UH, MAY I PLEASE HAVE A MOTION? SO MOVED.

AND A SECOND.

STAFF RECOMMENDATION, UH, IN THE, IN THE

UH, THIS IS, UH, THIS ITEM IS BEFORE US WITH A

[6. 26-54267 Recommendation to authorize the General Manager to execute a Change Order to Contract Number 32501188 with Torres Sanitation, Inc., to cover increased labor and material costs for the Broadway Court Sewer Lateral Repairs Project (SC-0513), in an amount of $52,092.33, for a revised total contract amount not to exceed $176,013.80. Suggested Action: Approved recommendation. ]

[00:30:01]

INTEREST OF TIME.

AND UNLESS THERE IS AN OBJECTION FROM THE COMMISSION, UH, I WOULD ENTERTAIN A MOTION TO APPROVE THE STAFF RECOMMENDATION WITHOUT A STAFF PRESENTATION.

ANY OBJECTIONS? AWESOME.

UH, SEEING NO REQUEST FOR A PRESENTATION, UH, UH, LET'S SEE.

I WILL CALL THE VOTE.

SO ALL THOSE IN FAVOR? AYE.

SAY AYE.

ANY OPPOSED? NO OPPOSED.

THE MOTION PASSES AND JUST WANNA SAY THANK YOU TO THOMAS BECKEL FOR, UH, THE CLARITY OF YOUR PRESENTATION, UH, UH, THAT, THAT YOU WERE PREPARED TO GIVE.

UM, UH, COMMISSIONER OBVIOUSLY AGREES WITH YOU AND, AND THE, UH, THE ITEM'S APPROVED.

SPECIFICATION UD 2 5 2 72 AND AWARD A CONTRACT TO, I'M GONNA SAY HACKER EQUIPMENT COMPANY TO FURNISH AND DELIVER FOUR SEWER JETTER TRUCKS.

ITEM NUMBER SEVEN, ADOPT SPEC

[7. 26-54268 Recommendation to adopt Specifications UD-25-272 and award a contract to Haaker Equipment Company, to furnish and deliver four sewer jetter trucks, in a total amount not to exceed $2,200,000, and authorize the General Manager to execute all documents necessary to enter into the contract, including any necessary subsequent amendments. Suggested Action: Approve recommendation. ]

UH, IN ORDER FOR THE PRESENTATION AND DISCUSSION, MAY I PLEASE HAVE A MOTION? THANK YOU.

SECOND.

UH, AND CALL ON MIKE HERBA FOR THE PRESENTATION.

GOOD MORNING COMMISSIONERS.

MY NAME IS MICHAEL HERBA.

I'M THE MANAGER OF SEWER OPERATIONS AND I'M HERE TODAY TO PRESENT THE RECOMMENDATION, THE PURCHASE FOR SEWER JET TRUCKS.

WALNUT UTILITIES CURRENTLY OPERATES A FLEET OF FIVE TRUCKS THAT RUN MONDAY THROUGH FRIDAY CLEANING.

AN AVERAGE OF 300 MILES OF CITY SEWER REMAINS ANNUALLY FOR ROUTINE MAINTENANCE.

THESE VEHICLES ARE ALSO DEPLOYED TO RESPOND TO EMERGENCIES AND CLEAR BLOCKAGES WITH THE ULTIMATE GOAL OF PREVENTING SANITARY SEWER SPILLS.

THE IMAGE AT THE TOP RIGHT SHOWS WHAT A TYPICAL JETTER TRUCK LOOKS LIKE.

WHILE THE BOTTOM VIDEO PROVIDES AN INSIDE THE PIPE VIEW OF THE HYDRO JETTING NOZZLE IN ACTION, DEMONSTRATING HOW HIGH PRESSURE WATER JETS EFFECTIVELY CLEAN THE SEWER LINE.

THESE TRUCKS ALSO SUPPORT OUR CCTV FLEET BY CLEARING OBSTRUCTIONS AND IMPROVING VISIBILITY IN THE SEWER MAIN, WHICH ENABLES OUR CREWS AND THE ENGINEERING TEAM TO OBTAIN HIGHER QUALITY VIDEO FOOTAGE AND A MORE ACCURATE PIPELINE ASSESSMENT.

OUR FLEET CONSISTS OF FIVE JETTER TRUCKS IN TOTAL, FOUR OF THESE WERE PURCHASED BETWEEN 2013 AND 2016, AND NOW HAVE REACHED THE END OF THEIR RECOMMENDED SERVICE LIFE.

OUR CURRENT JETTER TRUCKS ARE EXPERIENCING AN INCREASED FREQUENCY OF REPAIRS AND ASSOCIATED DOWNTIME.

OF THE THREE BIDS RECEIVED, THE ONLY RESPONSIVE BIDDER WAS KER EQUIPMENT COMPANY.

THE RECOMMENDATION IS TO ADOPT SPECIFICATIONS UD 2 5 2 7 2 AND AWARD A CONTRACT TO KER EQUIPMENT COMPANY TO FURNISH AND DELIVER FOUR SEWER JETTER TRUCKS IN A TOTAL AMOUNT, NOT TO EXCEED 2,200,000.

AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE ALL DOCUMENTS NECESSARY TO ENTER INTO THE CONTRACT, INCLUDING ANY NECESSARY SUBSEQUENT AMENDMENTS.

THAT CONCLUDES MY PRESENTATION, AND I'M AVAILABLE FOR ANY QUESTIONS.

THANK YOU, MICHAEL.

UH, ARE THERE ANY PUBLIC COMMENTS? ANY COMMISSIONER COMMENTS? I WOULD JUST LIKE TO PUBLICLY APOLOGIZE TO KER FOR MISPRONOUNCING THEIR NAME.

MM-HMM .

UM, I, I JUST HAVE ONE QUESTION.

I THINK I'VE ASKED THIS BEFORE ON OTHER, UH, ISSUES LIKE THIS.

ARE WE INTENDING TO RETAIN ANY OF THE, UH, OLDER, UH, JETTER TRUCKS? NO, THERE'S NO PLANS TO ADD ANYTHING ADDITIONAL TO OUR FLEET.

SO THE, THE EXISTING ONES THAT ARE RETIRING, UM, DO WE PLAN TO MOTHBALL THOSE OR ARE WE, ARE WE GOING TO, THOSE WILL BE RETIRED AND I BELIEVE AUCTIONED OFF.

UH, SO CHAIR WILL NOW CALL THE VOTE.

UH, ALL THOSE IN FAVOR, PLEASE SAY AYE.

ANY OPPOSED? AND THE MOTION PASSES.

AUTHORIZE THE GENERAL MANAGER TO DELIVER TO METROPOLITAN WATER DISTRICT A LETTER OF SUPPORT FOR THE PURE WATER SOUTHERN CALIFORNIA PROJECT.

ITEM NUMBER EIGHT,

[8. 26-54269 Recommendation to authorize the General Manager to deliver to Metropolitan Water District a Letter of Support for the Pure Water Southern California project. Suggested Action: Approve recommendation. ]

MAY I PLEASE HAVE A MOTION? MOTION TO APPROVE.

SECOND, THANK YOU SO MUCH.

UH, CALL ON GENERAL MANAGER ANTO GAN.

THANK YOU PRESIDENT.

PRESIDENT SCOTT, I DON'T HAVE A PRESENTATION PER SE.

THE PURE WATER SOUTHERN CALIFORNIA PROJECT IS A PROJECT THAT MANY OF YOU HAVE SEEN, UH, AND ACTUALLY VISITED, UH, ON OCCASIONS.

IT IS FUNDAMENTALLY A CHANGE IN

[00:35:01]

THE WATER RESOURCES PORTFOLIO FOR SOUTHERN CALIFORNIA.

IT REPRESENTS A LARGE SCALE WATER RECYCLING FACILITY ON A SCALE THAT THE ONLY EQUIVALENT CURRENTLY IS THE GROUNDWATER REPLENISHMENT SYSTEM.

IN ORANGE COUNTY RUN BY ORANGE COUNTY SANITATION DISTRICT, THIS SIGNIFICANTLY LARGE PROJECT CHANGES THE BALANCE OF METROPOLITAN'S WATER RESOURCE PORTFOLIO FROM AQUEDUCT BASE.

UH, PROJECTS SUCH AS THINGS, YOU KNOW, NOW YOU'VE HEARD THE PRESENTATION ON THE STATE WATER PROJECT, THE COLORADO RIVER.

THESE FUNDAMENTALLY HAVE TO DO WITH RAINFALL, SNOW PACK STORAGE BEHIND RESERVOIRS.

THE NATURE OF PURE WATER, SOUTHERN CALIFORNIA IS TO, IN EFFECT, TAKE SUPER CLEAN WATER THAT YOU WOULD NORMALLY IRRIGATE PARKS WITH AND SUPER CLEAN IT EVEN MORE THAN THAT, ESSENTIALLY CREATING DISTILLED WATER THAT DISTILLED QUALITY WATER WITH THAT QUALITY CAN NOW BE USED IN A NEW LEVEL OF TREATMENT, WHICH IS CALLED INDIRECT POTABLE REUSE.

IT CAN BE INJECTED INTO THE GROUND SAFELY AND THEN AT A LATER TIME AND WITH A CERTAIN DISTANCE EXTRACTED FROM OTHER WELLS TREATED AND SERVED AS DRINKING WATER.

THAT IS THE INITIAL PHASE AND PRIMARY USE OF PURE WATER, SOUTHERN CALIFORNIA.

AND AT THIS POINT, UM, THE FULL PROJECT IS ABOUT 150 MILLION GALLONS PER DAY.

TO GIVE YOU A SENSE OF THAT, THAT WOULD ESSENTIALLY BE 10% OF METROPOLITAN'S DEMANDS CURRENTLY IN SOUTHERN CALIFORNIA.

ALL THAT WELL AND GOOD.

THE INITIAL STAGE IS ABOUT 45 MILLION GALLONS PER DAY WITH ITS CONCENTRATION, MAINLY IN SOUTHEAST LOS ANGELES COUNTY.

LONG BEACH IS CURRENTLY, UH, IS A, UH, CONTRACTED INTERESTED PARTY WITH METROPOLITAN, I'LL SAY IT THAT WAY, UH, FOR ABOUT 4,000 ACRE FEET.

THAT 4,000 ACRE FEET REPRESENTS THE SOURCE OF SUPPLY THAT WE HAVE EMBEDDED WITHIN OUR OVERALL APPROACH TO INCREASING GROUNDWATER RESILIENCE.

THE FOUND BROADER RESILIENCE PROGRAM, WHICH HAS AS AN ULTIMATE GOAL OF PROVIDING GREATER RELIABILITY TO THE WESTERN PART OF THE CITY IN TERMS OF MEETING ITS DEMANDS.

THE PROJECT THE METROPOLITAN HAS IS A JOINT PROJECT WITH THE COUNTY SANITATION DISTRICTS OF LOS ANGELES.

THOSE TWO AGENCIES HAVE BEEN MOVING THROUGH THE ENVIRONMENTAL PROCESS, AND NOW THE ENVIRONMENTAL IMPACT REPORT HAS NOW REACHED ITS STAGE FOR APPROVAL AND IT WILL BE COMING BEFORE APPROVAL BEFORE THE METROPOLITAN BOARD AND THEN ALSO BEFORE THE COUNTY SANITATION BOARD.

THE FIRST ONE METROPOLITAN IS OCCURRING NEXT WEEK, TUESDAY AT COMMITTEE, I MEAN MONDAY A COMMITTEE, AND TUESDAY AT FULL BOARD.

THE LETTER BEFORE YOU IS TO REQUEST THAT WE AUTHORIZE A LETTER TO METROPOLITAN WATER DISTRICT OF SUPPORT FOR THE PROJECT TO BE PUT INTO THE RECORD AS THEY UNDERTAKE THEIR DELIBERATIONS AND DECISIONS.

NEXT WEEK, IT IS DIRECTED FROM THE BOARD PRESIDENT TO THE PRESIDENT, UH, OF THE BOARD OF DON ORTEGA, UH, APPROPRIATELY.

AND THAT IS THE ITEM BEFORE YOU TODAY.

UH, I SHOULD NOTE THAT I HAVE BEEN ASKED TO SPEAK ON BEHALF OF THE PROJECT AT THE MARCH METROPOLITAN ENGINEERING AND OPERATIONS COMMITTEE, UH, MEETING.

I'LL BE PROVIDING PUBLIC COMMENT THERE.

UH, I'LL BE PREPARING THOSE COMMENTS AHEAD OF TIME AND BE HAPPY TO SHARE THOSE WITH THE BOARD AHEAD OF MY PRESENTATION.

THAT CONCLUDES MY PRESENTATION HERE FOR YOU, AND I'M HAPPY TO ENTERTAIN ANY QUESTIONS YOU MIGHT HAVE.

IS THERE, ARE THERE ANY PUBLIC COMMENTS, ANY COMMISSIONER COMMENTS? I'M JUST REALLY GLAD TO SEE THIS, UM, AND I HOPE YOU FIND A WAY FORWARD.

IN THE 1800 TO $1,900 AN ACRE FOOT RANGE, ALL IN MAYBE A LITTLE BIT MORE, DEPENDING ON IF YOU INFLATE THE PRICES.

YEAH.

ANATOL, DO WE HAVE AN IDEA OF THE COST PER ACRE FOOT? IS IT COMPETITIVE WITH OUR WATER WE'RE BUYING FROM THE STATE WATER PROJECT OR THE RIVER OR GROUNDWATER? AN INCREDIBLY IMPORTANT QUESTION, AND I'M GLAD THAT YOU ASKED THAT.

SO, FOR CONTEXT, UM, WHEN METROPOLITAN PROVIDES ITS SUPPLIES, UM, IT HAS A COST OF SERVICE BASIS.

AND THAT COST OF SERVICE BASIS HAS AN WHAT WE CALL AN UNTREATED WATER COST.

AS AN UNTREATED WATER COSTS, WE DON'T NECESSARILY PAY SPECIFICALLY FOR STATE PROJECT WATER.

WE DON'T PAY SPECIFICALLY FOR COLORADO RIVER WATER.

WE PAY FOR METROPOLITAN UNTREATED WATER.

AND SO IN THAT SENSE, PURE WATER, SOUTHERN CALIFORNIA BEING DELIBERATED BY THE METROPOLITAN BOARD FOR ACTUAL PRICING AND COSTS AS BEING TREATED AS YET ANOTHER SUPPLY SOURCE FOR METROPOLITAN, WHICH EACH WILL MELD OR BLEND IN TO ITS TOTAL UNTREATED COSTS.

SO IN ESSENCE, WE'RE NOT PAYING SPECIFICALLY FOR PURE WATER SOUTHERN CALIFORNIA'S UNIT COST THAT TECHNICALLY IS HIGHER THAN COLORADO RIVER AQUEDUCT WATER, TECHNICALLY HIGHER THAN STATE PROJECT WATER.

BUT WHEN METROPOLITAN BLENDS IT INTO THE ENTIRE MILLION PLUS ACRE FEET OF SUPPLIES THAT IT DELIVERS EVERY YEAR, THEN THE MARGINAL COST DIFFERENCES IS VERY SMALL.

SO IN ESSENCE, WE WILL PAY FOR IT FOR EVERY DROP OF METROPOLITAN WATER THAT WE TAKE, WHETHER IT'S PURE WATER, COLORADO, OR STATE PROJECT.

DID THAT GIVE YOU A PERSPECTIVE? IT, IT IS.

BY VIRTUE OF BEING MEMBRANE BASED AND HAVING TO BE TREATED, SUPER TREATED, IT IS INHERENTLY SOMEWHERE

[00:40:01]

AND COLORADO RIVER AQUEDUCT WATER AND STATE PROJECT WATER.

RIGHT NOW, METROPOLITAN IS SELLING IT AT ABOUT THE $1,300 RANGE, RIGHT? SO ULTIMATELY THAT BLENDS AND IN THAT METROPOLITAN IS GONNA PRICE EVERY DROP OF WATER THAT IT SELLS.

SO IN ESSENCE, EVERYBODY THAT'S TAKING METROPOLITAN WATER IS GONNA SUPPORT THIS CLEAN PURE WATER PROJECT.

THAT'S THE BELIEF AND THAT'S THE INTENT.

WHEN METROPOLITAN MANAGES ITS SUPPLIES IN THAT MANNER, IT DOES SO ALSO WITH A COST OF SERVICE BASIS BECAUSE BY CONSUMING THIS WATER, YOU RELIEVE PRESSURE ON IMPORTED SUPPLIES AND THEREFORE THE REGION'S RELIABILITY GROWS.

SO IT, IT IS, YES, IT IS A BLENDING AND SUBSIDIZING, BUT AT THE SAME TIME IT'S DONE IN THE CONTEXT OF THAT IT INHERENTLY AS A RESOURCE PROVIDES GREATER RELIABILITY FOR ALL.

EXCELLENT CLARIFICATION.

UH, SO I GUESS THE CHAIR WILL NOW CALL THE VOTE TO ALL THOSE IN FAVOR PLEASE SAY AYE.

RECEIVE AND FILE THE JANUARY 8TH, UH, 2026 FINANCE COMMITTEE REPORT.

ANY OPPOSED? MOTION PASSES.

ITEM NUMBER 10, UH, RECEIVE AND FILE THE JAN.

CAN I SKIP SOMETHING? NO.

ITEM NUMBER NINE,

[9. 26-54270 Recommendation to receive and file the January 8, 2026 Finance Committee Report. Suggested Action: Approve reommendation. ]

MAY I PLEASE HAVE A MOTION? SO MOVED.

I'LL SECOND IT.

UM, CALL ON SECRETARY PARKIN.

OKAY, THANK YOU.

I'M GONNA READ THIS SO I GET IT RIGHT.

UM, AT THE FINANCE COMMITTEE MEETING STAFF, UH, DANIEL PROVIDED A PRELIMINARY FISCAL YEAR 2025 YEAR-END FINANCIAL UPDATE.

THE TEAM NOTED THAT THESE FIGURES ARE SUBJECT TO CHANGE AND THAT A FINAL AUDITED FINANCIAL REPORT WILL BE PRESENTED UPON COMPLETION OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT ANTICIPATED IN LATE MARCH OR EARLY APRIL.

IN ADDITION, STEPHANIE PRESENTED AN OVERVIEW OF THE FISCAL YEAR 2027 BUDGET PLANNING PROCESS, THE PLANNING TIMELINE THAT BEGINS NOW AND WE'LL CONTINUE THROUGH SEPTEMBER WHEN THE BUDGET'S SCHEDULED FOR ADOPTION.

THE APPROACHES TO INITIATE THE BUDGET PROCESS EARLY TO ENGAGE WITH THE BOARD AND PROVIDE TRANSPARENCY IN THE BUDGET AND RATE DEVELOPMENT PROCESS.

UH, THIS IS EARLY ENGAGEMENT IS INTENDED TO ENSURE A BALANCED BUDGET WHILE CONSIDERING FINANCIAL IMPACTS TO THE RATE PAYERS AND LONG-TERM SUSTAINABILITY OF SAFE AND RELIABLE INFRASTRUCTURE.

THE PROCESS WILL CONCLUDE, INCLUDE COMMUNITY OUTREACH, BUDGET PLANNING SESSIONS WITH THE BOARD, AS WELL AS A NUMBER OF KEY MILESTONES AND A PROP TWO 18 HEARING AND FINAL BUDGET ADOPTION BY THE COUNCIL IN SEPTEMBER.

SO THANK YOU VERY MUCH.

THANK YOU STEPHANIE.

THANK YOU SECRETARY PARKIN, ARE THERE ANY PUBLIC COMMENTS? ANY COMMISSIONER COMMENTS? ALL GOOD STUFF.

UH, ALL THOSE IN FAVOR OF, UH, RECEIVING FILE? AYE.

SAY AYE.

FILE THE JANUARY 20, JANUARY 22ND, 2026 COMMUNICATIONS COMMITTEE REPORT.

ANY OPPOSED? MOTION PASSES NOW.

ITEM NUMBER 10, RECEIVE AND

[10. 26-54271 Recommendation to receive and file the January 22, 2026 Communications Committee Report. Suggested Action: Approve recommendation. ]

UH, MAY I PLEASE HAVE A MOTION TO RECEIVE AND FILE AND I WILL SECOND IT? SECOND, UH, CALL ON COMMISSIONER MCGUIRE FOR A REPORT, PLEASE.

WELL, AT THE COMMUNICATIONS COMMITTEE JANUARY 22ND, WE RECEIVED AND FILED A PRESENTATION BY JOY CONTRERAS, OUR DEPARTMENT'S PUBLIC AFFAIRS OFFICER, ABOUT RECENT EXTERNAL COMMUNICATION EFFORTS, INCLUDING ACTIVE PARTICIPATION BY THE UTILITIES DEPARTMENT AT OVER 85 COMMUNITY EVENTS ACROSS THE CITY SO THAT WE'RE REACHING OUR CUSTOMERS WHERE THEY ARE THROUGHOUT LONG BEACH.

UH, WE ALSO HEARD ABOUT BRAND ALIGNMENT TO HELP UTILITIES CUSTOMERS CONNECT THE DOTS BETWEEN UTILITIES, INFORMATIONAL MATERIALS THEY RECEIVE ABOUT UPCOMING WORK WITH OUR UTILITIES EMPLOYEES AND THE WORK THEY'RE ACTUALLY DOING WHEN THEY SHOW UP AT THEIR DOORSTEP FOR GAS, CORROSION SURVEYS, WATER PIPELINE REPAIRS, OR OTHER SAFETY INSPECTIONS.

AND, UH, WE HEARD ABOUT LARGE MAILINGS TO ENSURE LEGAL REQUIREMENTS ARE MET TO PROPERLY NOTIFY ALL 90,000 WATER AND SEWER CUSTOMERS ABOUT RATE ADJUSTMENTS IN COMPLIANCE WITH PROP TWO 18 AND AB 2257.

WE ALSO HEARD ABOUT NEW INTERNAL COMMUNICATIONS EFFORTS, MOST NOTABLY A UNIFIED, UH, EMPLOYEE NEWSLETTER, WHICH WE'RE ALL ENJOYING TO SUPPORT POSITIVE WORKPLACE CULTURE.

AND IT'S NOW IN ITS FIFTH EDITION.

CONGRATULATIONS.

AND FINALLY, THE COMMITTEE, UH, WAS ALSO MADE AWARE OF FUTURE WORK THAT WE CAN EXPECT TO SEE, INCLUDING EVIDENCE-BASED EDUCATIONAL CAMPAIGNS, COMMUNITY OUTREACH FOR THE UTILITIES, FISCAL YEAR 27, BUDGET AND DEVELOPMENT OF A DEPARTMENT COMMUNICATIONS PLAN.

SO WE LOOK FORWARD TO THAT AND THE COMMUNICATIONS COMMITTEE WILL MEET AGAIN ON APRIL 2ND.

[00:45:02]

COMMISSIONER MCGUIRE, ARE THERE ANY PUBLIC COMMENTS? ANY COMMISSIONER COMMENTS? THANK YOU SO MUCH.

UH, SO ALL THOSE IN FAVOR OF RECEIVING ON FILE, PLEASE SAY AYE.

ANY OPPOSED? THE MOTION PASSES.

UH, PUBLIC COMMENT PERIOD.

IS THERE ANYONE WISHING TO SPEAK ON A NON AGENDA ITEM? SEEING NONE, THE PUBLIC COMMENT PERIOD IS NOW CLOSED.

ANNOUNCEMENTS, UH, ANY COMMISSIONER ANNOUNCEMENTS? ALRIGHT, UH, GENERAL MANAGER GON, I'M GONNA, IN THE INTEREST OF THE TIME, KEEP MY COMMENTS SHORT.

ON THE NEXT BOARD MEETING I'LL HAVE A GENERAL MANAGER'S REPORT.

JUST WANTED TO HIGHLIGHT THAT IN THE COLORADO RIVER NEGOTIATIONS, THEY ARE WORKING UP AGAINST A DEADLINE.

SOMEBODY IN INFINITE WISDOM DECIDED TO SET FEBRUARY 14TH AS THAT DEADLINE, UH, WHICH I THINK WILL MATTER GREATLY TO A BUNCH OF PEOPLE PLANNING TO HAVE OTHERWISE OTHER TYPES OF CELEBRATIONS, UM, DO NOT WANNA BE THE PARTNERS ASSOCIATED WITH THE PEOPLE THAT GET TOLD.

I'M TOO BUSY TO, UH, CELEBRATE THE 14TH WITH YOU BECAUSE I HAVE TO MEET THE FEDERAL GOVERNMENT'S DEADLINE.

SO, UM, I'LL LET THAT BE FOR WHAT IT IS.

I HAVE NO OTHER COMMENT.

UH, BEFORE WE GO INTO CLOSED SESSION, I JUST WANNA INVITE EVERYONE TO STICK AROUND FOR THE PLANNING COMMITTEE, UH, UH, MEETING COMING UP AFTER CLOSED SESSION.

UH, WE'VE GOT SOME EXCITING THINGS TO TALK ABOUT THERE, UM, UH, INCLUDING CAMPUS REALIGNMENT AND MODERNIZATION.

SO, UH, CLOSED SESSION

[CLOSED SESSION]

PENDING LITIGATION.

CLOSED SESSION CONFERENCE WITH LEGAL COUNSEL RELATING TO LIABILITY CLAIMS PURSUANT TO SUBPARAGRAPH TWO OF SUBDIVISION D OF SECTION 5 4 9 5 6 POINT OF CALIFORNIA GOVERNMENT CODE, GOVERNMENT TORT CLAIM OF EUGENE TRIFF, VALERIE TR, AND OR TRIFF FAMILY TRUST C2 FIVE DASH 4 94 AND SECONDARILY PURSUANT TO CALIFORNIA GO CODE 5 4 9 57.

A CONSULTATION WITH SEAN CURTIS, MANAGER, SECURITY AND EMERGENCY PREPAREDNESS, AND ALVIN LAMB, DIRECTOR OF INFORMATION SERVICES TO DISCUSS AND ASSESS THREATS TO PUBLIC SERVICES OR FACILITIES.

ARE THERE ANY PUBLIC

[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.]

COMMENTS? EXCELLENT.

SO WE WILL BE IN RECESS INTO CLOSED SESSION.

UH, FOR THE CLOSED SESSION ITEM RELATED TO PENDING LITIGATION, THE CLAIM OF EUGENE AND VALERIE TRIFF AND THE TRIFF FAMILY TRUST.

ALL RIGHT, WE WILL NOW RECONVENE, UH, FROM CLOSED SESSION.

UH, THANK YOU EVERYONE FOR YOUR PATIENCE.

UM, AND WE'LL HEAR FROM THE DEPUTY CITY ATTORNEY ON A REPORT OUT.

THANK YOU PRESIDENT SCOTT.

[ 26-54102 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 Eugene Triff, Valerie Triff and/or Triff Family Trust (C25-0494). ]

CLAIM NUMBER C 25 DASH 0 4 9 4 WAS PARTIALLY SETTLED IN THE AMOUNT OF $79,321 AND 49 CENTS.

UH, THERE IS NOTHING TO REPORT OUT ON THE

[ 26-54272 Pursuant to California Government Code 54957(a), consultation with Shaun Curtis, Manager, Security and Emergency Preparedness, and Alvin Lam, Director of Information Services, to discuss and assess threats to public services or facilities. ]

SECOND CLOSED SESSION ITEM, UM, RELATED TO THE ASSESSMENT OF THREATS TO PUBLIC SERVICES OR FACILITIES.