* 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. [00:00:02] THANK YOU. GOOD [CALL TO ORDER] MORNING EVERYONE. SORRY ABOUT THE SLIGHTLY LATE START. UH, IT IS THURSDAY, APRIL 16TH. WELCOME TO THE PUBLIC UTILITIES COMMISSION. UH, THIS MEETING IS CALLED TO ORDER. UH, IF I MAY, PLEASE HAVE [PLEDGE OF ALLEGIANCE] TIAN SANDERS. THERE WE GO. UH, LEAD US IN THE PLEDGE OF LEAKS. OH, YOU'RE SO CUTE. THE UNITED STATES OF AMERICA, THE REPUBLIC JUSTICE. THANK YOU, DINA, CAN WE PLEASE HAVE [ROLL CALL] A ROLL CALL? YES. PRESIDENT SCOTT PRESENT, VICE PRESIDENT CORDERO. SECRETARY PARKIN. COMMISSIONER MCGUIRE AND COMMISSIONER AUSTIN. WE HAVE A QUORUM. THANK YOU. THANK YOU. UH, SO CONSENT CALENDAR. [CONSENT CALENDAR] [3. 26-54855 Recommendation to receive and file the 2026 Annual Ethics Update.       Suggested Action: Approve recommendation. ] DO WE HAVE A MOTION TO APPROVE THE CONSENT CALENDAR? ADAMS NUMBER ONE AND TWO. THANK YOU. AND A SECOND. SECOND. THANK YOU. UH, ANY PUBLIC COMMENTS? ALL THOSE IN FAVOR, PLEASE SAY AYE. AYE. AYE. ANY OPPOSED? ALRIGHT, THANK YOU. UH, AGENDA ITEM NUMBER THREE ON THE REGULAR AGENDA. RECEIVE AND FILE THE 2026 ANNUAL ETHICS UPDATE. IN ORDER TO HEAR THE PRESENTATION. MAYBE HAVE A MOTION. MOTION. THANK YOU. IN A SECOND. THANK YOU. UM, CALL ON HEATHER VAN WICK. THERE WE GO. UH, ETHICS OFFICER FOR THE CITY OF LONG BEACH. WELCOME, HEATHER. HEY, EVERYBODY. CAN YOU HEAR ME OKAY? GOOD MORNING. NO. UM, SO ANYWAY, AGAIN, HEATHER, COULD YOU PLEASE, UH, CLOSER TO THE MICROPHONE. GOT IT. THANK YOU. IS THAT GOOD? UM, OKAY. IS IT NOT WORKING? IS THAT GOOD? THAT'S BETTER. OKAY. THANK YOU. I DON'T LIKE MICROPHONES. CAN YOU TELL? ANYWAY, UM, AGAIN, I'M HEATHER VAN WICK. I'M THE CITY'S ETHICS OFFICER HERE, JUST TO DO AN ANNUAL CHECK-IN. UM, IT'S GOOD TO SEE EVERYBODY AGAIN. I DO WANNA START BY ACKNOWLEDGING, UH, THAT BOB SHANNON IS NO LONGER WITH US. I'VE KNOWN, OR I HAD KNOWN MR. SHANNON FOR QUITE A LONG TIME. ONE OF THE FIRST OFFICIALS I MET WHEN I STEPPED INTO, UH, MY EMPLOYMENT WITH THE CITY 20 YEARS AGO. SO ANYWAY, JUST WANNA ACKNOWLEDGE THAT AND ACKNOWLEDGE COMMISSIONER AUSTIN, IT'S GOOD TO SEE YOU. UM, SO ANYWAY, I'LL JUMP RIGHT INTO IT, AND THEN MY, UH, PRESENTATION WILL LEAD INTO MARSHA'S, UH, BROWN ACT REFRESHER. SO, JUST A QUICK REMINDER, THE OFFICE OF ETHICS AND TRANSPARENCY, FOR THOSE THAT DON'T KNOW WE HAVE THAT OFFICE. UM, OUR MISSION IS PRETTY SIMPLE. LIKE YOU, IT'S TO BUILD TRUST AMONG THE PUBLIC EMPLOYEES AND OFFICIALS, AND TO PROVIDE THE NECESSARY RESOURCES TO MAKE IMPARTIAL DECISIONS AS STEWARDS OF PUBLIC RESOURCES. UH, AT THE CORE OF WHAT WE DO IS GUIDANCE AND EDUCATION. WE HAVE OUR ETHICS HELPLINE, ADVICE, TRANSPARENCY, AND PUBLIC TRUST. WE MANAGE THE PUBLIC RECORDS ACT PROGRAM, ALWAYS WORKING IN PARTNERSHIP WITH OUR CITY DEPARTMENTS. AND WE ALSO MANAGE AN ETHICS COMMISSION, WHICH, UH, COMMISSIONER AUSTIN HELPED, UH, PUT INTO PLACE IN THE CITY SOME OF OUR ACCOMPLISHMENTS LAST YEAR, AS WE ARE ALMOST THROUGH THIS YEAR OR HALFWAY THROUGH. ANYWAY, UH, WE LAUNCHED A FIVE YEAR STRATEGIC ROADMAP, WHICH I WAS SHARING WITH YOU ALL A LITTLE BIT ABOUT LAST YEAR. WE ADVANCED A CITY OR UNIFIED CITYWIDE ETHICS FRAMEWORK, WHICH WE'RE CALLING THE FAIR ACT THAT IS NOW IN THE GOVERNMENT OPERATIONS AND EFFICIENCY COMMITTEE, MAKING ITS WAY BACK TO CITY COUNCIL AND, UH, SOON TO BE AN ORDINANCE. AND WHAT THAT ORDINANCE WILL DO WILL JUST CENTRALIZE ALL OF OUR DIFFERENT, UM, ETHICS POLICIES, LAWS, REQUIREMENTS THAT ARE SPREAD OUT EVERYWHERE RIGHT NOW. UH, WE ALSO BUILT OUT A MASTER COMMUNICATIONS AND EDUCATION PLAN, AND THEN WE CONTINUE DOING THIS OUTREACH AND SUPPORT FOR OUR BOARDS AND COMMISSIONS AND FOR OUR STAFF LIAISONS. I ALSO WANNA NOTE THAT THIS PARTICULAR, WHAT WE CALL A ROADSHOW, UM, IS VERY IMPORTANT TO MAYOR RICHARDSON. TYPICALLY, AS YOU KNOW, JEFF WILLIAMS JOINS ME. UM, SO IT'S WITH HIS SUPPORT THAT WE CONTINUE THIS TYPE OF OUTREACH. AND THIS IS JUST A QUICK LOOK AT THE FRAMEWORK FOR ETHICAL DECISION MAKING THAT WE PUT TOGETHER PRIMARILY FOR EMPLOYEES. AND IT JUST HELPS EMPLOYEES, UM, ASK QUESTIONS, GET THE FACTS, EVALUATE, MAKE A DECISION, AND SO FORTH. THIS YEAR, AGAIN, WE'RE PRACTICALLY HALFWAY THROUGH, BUT WE CONTINUE TO WORK ON THE FAIR ACT, DECISION MAKING TOOLS, LEADERSHIP SUPPORT, AND JUST REALLY PROMOTING, UM, OUR HELPLINE AND OTHER RESOURCES THAT WE HAVE. WHAT I LIKE TO TOUCH ON THIS YEAR WITH THIS ROADSHOW, UM, IS JUST, YOU GUYS ARE A LITTLE BIT DIFFERENT IN THAT YOU ARE A DECISION MAKING [00:05:01] BODY. YOU ARE A CHARTER BODY, BUT TYPICALLY MOST OF OUR COMMISSIONS ARE ADVISORY BODIES. UM, SO WE LIKE TO PROMOTE THAT. THOUGH THESE BODIES ARE ADVISORY, THE RECOMMENDATIONS ARE EXTREMELY VALUABLE AND THEY HELP SHAPE PUBLIC TRUST AND INFLUENCE DECISIONS. UM, THE LITTLE POINTERS ARE REMINDERS, UM, FOR OUR COMMISSIONS AS WE GO THROUGH THIS QUICK PRESENTATION. CHARTER, UH, COMMISSIONS ARE NOT RESPONSIBLE FOR, UM, TURNING IN ANNUAL REPORTS. SOME OF THEM DO, HOWEVER. AND FOR THOSE, FOR THOSE THAT ARE REQUIRED AND THOSE THAT CHOOSE TO DO, THOSE ARE DUE ON JUNE 1ST FORM 700. WE GOT TO THAT, UH, APRIL 1ST DEADLINE. HOPEFULLY ALL OF US MADE IT ON TIME. UM, A REMINDER THAT OUR COMMISSION MEETINGS HAVE TO BE CONDUCTED IN ACCORDANCE WITH THE BROWN ACT AND BYLAWS AND OUR ROBERTS RULES OF ORDERS. AGAIN, MARSHALL WILL GO OVER THAT IN A MINUTE. WHAT THEY DO IS THEY ENSURE OPEN, TRANSPARENT, DELIBERATE TRANSPARENT DELIBERATION, EQUAL ACCESS TO INFORMATION AND PUBLIC TRUST IN THE PROCESS. WE ALSO LIKE TO HIGHLIGHT AND REMIND THOSE BEHIND THE D THAT, UM, REALLY UNBIASED DECISION MAKING IS AT THE CORE OF WHAT WE ALL DO, ESPECIALLY COMMISSIONERS. WE HAVE TO REMAIN IMPARTIAL. AND OBJECTIVE DECISIONS HAVE TO BE MADE BEHIND THE DAAS, NOT BEFORE YOU GET TO THE DAAS. AND EVEN THE APPEARANCE OF BIAS CAN REALLY UNDERMINE PUBLIC TRUST, FAIRNESS AND PROCESS CONTINUED. OF COURSE, ONLY THE CHAIR OR ANOTHER MEMBER FORMERLY AUTHORIZED BY THE COMMISSION, CAN SPEAK ON BEHALF OF THE COMMISSION. THIS APPLIES TO CITY COUNCIL. OTHER PUBLIC MEETINGS, EMAILS AND LETTERS, SOCIAL MEDIA POSTS. WE'VE HAD SOME ISSUES WITH THAT OVER THE LAST TWO YEARS, NOT WITH THIS BODY. UM, AND THEN SIGNATURES AND ENDORSEMENTS OR PUBLIC STATEMENTS. YOU CAN'T SUPPORT SOMETHING ON BEHALF OF THE COMMISSION IF THE COMMISSION DOESN'T KNOW ABOUT IT. UM, AND WHY THIS MATTERS, OF COURSE, FORMAL APPROVAL PROCESSES HELP ENSURE STATEMENTS MADE OUTSIDE OF THE MEETINGS, REFLECT THE COMMISSION'S COLLECTIVE POSITION AND DON'T PROMOTE PERSONAL AGENDAS OR BIASES. THESE ARE THE TRAININGS THAT WE ARE ALL OR MOST OF US, ARE REQUIRED TO TAKE. YOU ALL ARE VERY FAMILIAR WITH THESE. WE HAVE OUR CITY CODE OF CONDUCT AND ETHICS TRAINING. THAT'S ANNUALLY. THAT'S THE 30 MINUTE TRAINING. WE ALSO HAVE THE BIENNIAL STATE AND CITY REQUIRED HARASSMENT TRAINING. WE HAVE OUR STATE REQUIRED AB 1234 ETHICS TRAINING. THIS IS BIENNIAL. THIS IS THE TWO HOUR TRAINING. AND THEN WHEN, UH, YOU FIRST STEP INTO OFFICE, YOU'VE GOT THE MAYOR'S, UH, SERIES OF TRAININGS. WE DID NOT, OR THE CITY ATTORNEY DID NOT HAVE TO REMOVE ANYONE FOR NON-COMPLIANCE OF TRAININGS, UH, LAST YEAR. SO THAT'S GREAT. WE'RE A HUNDRED PERCENT IN COMPLIANCE. AND AGAIN, ALL OF THESE TRAININGS LIVE AND LEARN. WE HAVE A HELPLINE. THIS IS DIFFERENT THAN OUR FRAUD HOTLINE. UM, THIS IS REALLY, IT'S OPEN TO THE PUBLIC. IT'S GENERALLY USED BY OUR EMPLOYEES, AND IT'S REALLY JUST ANOTHER RESOURCE, UH, FOR EMPLOYEES TO USE SHOULD THEY NOT FEEL COMFORTABLE GOING THEIR TRADITIONAL PATHWAYS FOR SEEKING HELP. JUST A QUICK LIST OF KEY TAKEAWAYS THAT WE JUST WENT OVER. UM, YOUR ROLE IS NOT ADVISORY. YOU MAKE A LOT OF IMPORTANT DECISIONS. UM, JUST KNOW WHEN YOU'RE SPEAKING PERSONALLY VERSUS OFFICIALLY FORMAL APPROVAL PROCESSES MATTER. IT'S IMPORTANT TO REMAIN FAIR, IMPARTIAL, AND UNBIASED. FOLLOW MEETING RULES AND PROCEDURES AND COMPLETE REQUIRED TRAININGS AND DISCLOSURES. AND IF YOU ARE NOT SURE, ASK DINA OR MARSHA. AND THEN THESE ARE ALL THE RESOURCES THAT WE HAVE. THEY'RE ALL UPDATED. UM, I LIKE TO PROMOTE THE, THE ETHICS GUIDE FOR LONG BEACH CITY OFFICIALS AND EMPLOYEES. THIS IS MANAGED BY OUR CITY ATTORNEY. THIS IS ALL OF THE, UM, COMPLIANCE, THE LAWS THAT CITY OFFICIALS ARE REQUIRED TO ABIDE BY. UM, SO THIS IS JUST A HIGH LEVEL, UH, OVERLOOK AT ALL OF THOSE REQUIREMENTS. AND THEN WE ALSO HAVE OUR COMMISSION BOARD AND COMMITTEE HANDBOOK THAT THE CITY CLERK MANAGES. THAT. THE, THAT IS THE END OF MY PRESENTATION. THANK YOU. THANK YOU, HEATHER. UH, ARE THERE ANY PUBLIC COMMENTS? ARE THERE ANY COMMISSIONER COMMENTS? UH, HI HEATHER. I WANNA THANK YOU FOR THAT. IT'S REALLY TIMELY. UM, UH, METROPOLITAN WATER DISTRICT JUST CREATED, UH, WE HAD OUR FIRST MEETING THIS WEEK, UM, AN ETHICS COMMITTEE. IT USED TO BE AUDIT AND ETHICS, AND THEN NOW THEY PULLED IT OUT AND MADE IT AN ETHICS COMMITTEE. UM, PARTIALLY BECAUSE IT WAS GETTING, THE ETHICS DEPARTMENT WAS GETTING SUCH PUSHBACK ON MANY, MANY THINGS. UM, IT LOOKED LIKE MAYBE IT, SOME PEOPLE, MAYBE BOARD MEMBERS TOO, WERE FEELING THAT IT WAS SPILLING OVER. THERE WAS TOO MUCH POWER. THERE WAS, WHAT WAS THE PURPOSE? SHOULD [00:10:01] WE BRING IN AN OUTSIDE INVESTIGATOR IN TERMS FOR AN ATTORNEY AND NOT HAVE AN ETHICS SO THAT ALL THOSE DISCUSSIONS WERE HAPPENING, BUT WE, OUR CHAIR, DECIDED TO MAKE IT A COMMITTEE. AND WE'RE KEEPING THE DEPARTMENT, WE HAVE BELIEVE EIGHT EMPLOYEES THAT, THAT, UH, DO THIS. UM, IT BUILDS TRUST AND, AND AN ACCOUNTABILITY. THOSE ARE THE TWO THINGS, AS YOU HAVE SAID VERY WELL, UH, TODAY. UM, I ALSO MENTIONED IN ONE OF OUR, OUR ZOOM CALLS WITH THEM THAT AT SOME POINT IT WOULD BE GREAT TO HAVE TO EXPAND IT AND TO TEACH OUR AGENCIES. 'CAUSE THERE'S MANY AGENCIES WITHIN MET WHO MAYBE DON'T HAVE AN ETHICS COMMISSION OR DEPARTMENT WHO MAYBE NEED SOME SUPPORT. SO THEY MAY BE CALLING YOU BECAUSE THIS WAS EXCELLENT. THANK YOU. THIS IS THE BEST. I'VE, I'VE HEARD. WE, WE MET WITH LA COUNTY A COUPLE DAYS AGO. WE'RE GONNA MEET WITH METRO, AND THIS IS REALLY, REALLY WELL DONE. I THINK YOU'VE BEEN VERY, VERY COMPREHENSIVE ON THAT, SO I GREATLY APPRECIATE THAT. YOU MAY GET A CALL AND I WANNA THANK YOU FOR BRINGING UP BOB SHANNON. I THINK IT'S ANY CHANCE WE GET TO BRING UP PEOPLE THAT HAVE PASSED THROUGH HERE AND HAVE IMPACTED AND THE FOOTPRINTS ON OUR HEART. I THINK IT'S IMPORTANT. SO WITH THAT TOO, ART LEVINE, THANK YOU. THANK YOU. YOU VICE PRESIDENT CORDERO. ANY OTHERS? YES, SIR. UH, THANK YOU, HEATHER, FOR THE GREAT PRESENTATION. UH, I WANTED TO JUST SAY IT KIND OF WARMS MY HEART TO SEE, UH, THE FOCUS, UH, AND EMPHASIS ON ETH ETHICS, UM, IN THE CITY, PARTICULARLY COMING INTO THE DEPARTMENT LEVEL. UM, WHEN WE, UH, ENVISIONED THE ETHICS COMMISSION, I THINK IT WAS MORE TO KIND OF KEEP, UH, THE ELECTED OFFICIALS AND CITY COUNCIL IN LINE, BUT, UH, REALLY ETHICS, UM, SHOULD BE PART OF THE CULTURE OF THE ENTIRE CITY AND THE ORGANIZATION. UH, AND IT'S EVERYBODY'S RESPONSIBILITY TO, TO, UM, TO, TO BE, UH, STEWARDS OF GOOD GOVERNMENT. AND I THINK, UM, YOU KNOW, YOUR PRESENCE TODAY, YOUR PRESENTATION CERTAINLY UPLIFTS GOOD GOVERNMENT HERE IN THE CITY OF LONG BEACH. SO PLEASE KEEP UP THE GREAT WORK. AND, UH, AGAIN, I'M, I'M, I'M REALLY PROUD TO, TO SEE THIS, THIS WORK CONTINUING AND, AND, UH, MOVING THROUGHOUT THE ORGANIZATION. UH, YOU MENTIONED THAT YOU'RE DOING A ROAD SHOW. SO I'M, I'M, UH, ASSUME THAT YOU WERE TALKING TO EVERY COMMISSION AND EVERY EVERY DEPARTMENT. UM, THIS IS SOMETHING THAT IS, UM, YOU KNOW, KIND OF BEING, AS REX WOULD SAY, OUR MAYOR WOULD SAY, BEING BAKED INTO, UM, OUR, OUR, OUR CULTURE IS, UH, AS A CITY. SO THANK YOU. THANK YOU. ANY OTHER COMMENTS? ALRIGHT, PERFECT. UH, WE HAVE A MOTION TO RECEIVE AND FILE ALL THOSE IN FAVOR, PLEASE SAY AYE. AYE. ANY OPPOSED? NONE. THANK YOU. THANK YOU VERY MUCH, HEATHER. APPRECIATE IT. ITEM NUMBER FOUR, [4. 26-54856 Recommendation to receive and file the Brown Act Training.       Suggested Action: Approve recommendation. ] RECEIVE AND FILE A PRESENTATION FROM OUR DEPUTY CITY ATTORNEY, UH, REGARDING THE BROWN ACT TRAINING. MAY I PLEASE HAVE A MOTION TO RECEIVE AND FILE MOVE. THANK YOU. AND A SECOND. SECOND. THANK YOU. UH, DEPUTY CITY ATTORNEY MARSHA. YES, YASUDA. GOOD MORNING, PRESIDENT SCOTT COMMISSIONERS. UH, TODAY WE'RE JUST GONNA GO OVER THE BROWN ACT AND HAVE A LITTLE BIT OF A REFRESHER TRAINING. UH, THESE ARE THE TOPICS THAT WE'RE GOING TO BE COVERING IN TODAY'S PRESENTATION. SO WE'RE GONNA START WITH A LITTLE HISTORY OF THE BROWN ACT. UH, THE BROWN ACT WAS ENACTED IN 1953 TO GUARANTEE THE PUBLIC'S RIGHT TO ATTEND AND PARTICIPATE IN MEETINGS OF LOCAL LEGISLATIVE BODIES. THE BROWN ACT WAS ENACTED IN RESPONSE TO PUBLIC CONCERNS OVER INFORMAL UNDISCLOSED MEETINGS HELD BY LOCAL ELECTED OFFICIALS. AND THE BROWN ACT IS ONE OF CALIFORNIA'S MAINE SUNSHINE LAWS. UH, SUNSHINE LAW GETS THEIR NAME FROM THE IDEA THAT THE BRIGHT LIGHT OF SUNSHINE OR PUBLIC SCRUTINY IS THE BEST DISINFECTANT AGAINST INEPTITUDE, NEGLIGENCE, AND CORRUPTION IN A DEMOCRATIC GOVERNMENT. AND A TRANSPARENT GOVERNMENT IS ONE THAT HAPPENS OUT IN THE OPEN SUNSHINE. THE BROWN ACT IS BASED ON THE FOLLOWING PRINCIPLES THAT ALL MEETINGS MUST BE OPEN IN PUBLIC ACTIONS AND DELIBERATIONS MUST BE TAKEN OPENLY. ALL PEOPLE HAVE THE RIGHT TO ATTEND AND PARTICIPATE IN MEETINGS AND ONLY MATTERS ON THE AGENDA CAN BE DISCUSSED. THESE REQUIREMENTS ENSURE THAT THE GOVERNMENT'S DECISIONS ARE MADE IN A TRANSPARENT FORUM THAT ALLOWS FOR PUBLIC INPUT. SO WHAT IS A MEETING UNDER THE BROWN ACT? THE BROWN ACT APPLIES TO MEETINGS OF A MAJORITY OF MEMBERS OF AT THE SAME TIME AND PLACE TO HEAR, DISCUSS, OR DELIBERATE ON ANY ITEM THAT IS WITHIN THE SCOPE OF DUTIES ASSIGNED TO THE BOARD. A MAJORITY OF MEMBERS OF A BODY OR A QUORUM IS NEEDED TO HOLD A MEETING AND TO TAKE ACTION. A QUORUM IS MEASURED BY 50% PLUS ONE OF THE SEATS OF THE BODY. SO FOR THIS PARTICULAR BOARD OF FIVE MEMBERS, A QUORUM IS THREE BOARD MEMBERS [00:15:03] WHO IS SUBJECT TO THE BROWN ACT. THE BROWN ACT APPLIES TO LEGISLATIVE BODIES, SUCH AS THE CITY COUNCIL, AND IT ALSO APPLIES TO BODIES CREATED BY THE CITY COUNCIL OR THE CITY CHARTER, SUCH AS THIS PARTICULAR BOARD. THE BROWN ACT ALSO APPLIES TO SUBCOMMITTEES CREATED BY FORMAL ACTION OF A BODY. SO EXAMPLES OF SUBCOMMITTEES INCLUDE THE UTILITIES COMMUNICATIONS COMMITTEE AND THE UTILITIES FINANCE COMMITTEE. I SHOULD GO BACK. UM, THE BROWN ACT DOES NOT APPLIED TO TEMPORARY AD HOC COMMITTEES MADE UP OF MEMBERS OF A BODY AND CONSTITUTING LESS THAN A FORUM. SO THIS PARTICULAR BOARD, IF THERE WAS A SUB, IF THERE WAS A SUBCOMMITTEE OF TWO, UM, AT EXCUSE. YEAH. AND, AND THE AD HOC COMMITTEES ARE FORMED FOR A LIMITED PURPOSE, AND THEY'RE DISSOLVED ONCE THAT PURPOSE IS COMPLETE. SO THEY COULDN'T BE, UM, AN ONGOING COMMITTEE. SO AVOIDING APPEARANCE OF IMPROPRIETY, THE APPEARANCE OF IMPROPRIETY MEANS THAT THERE IS A PERCEPTION THAT WRONGDOING OR MISCONDUCT MAY HAVE OCCURRED, OCCURRED BY A PUBLIC OFFICIAL. YOU CAN AVOID THE APPEARANCE OF IMPROPRIETY THAT YOU ARE VIOLATING THE BROWN ACT BY AVOIDING THE POSSIBILITY OF IMPROPERLY DISCUSSING BUSINESS OF THE BODY OUTSIDE OF A PUBLIC MEETING. IF THE PUBLIC PERCEIVES THAT YOU HAVE ENGAGED IN WRONGDOING OR MISCONDUCT, IT CAN CALL INTO QUESTION YOUR ABILITY TO CARRY OUT YOUR OFFICIAL RESPONSIBILITIES WITH FAIRNESS, IMPARTIALITY, OBJECTIVITY AND INTEGRITY. THIS CAN UNDERMINE THE PUBLIC'S FAITH AND TRUST IN GOVERNMENT. IF THE PUBLIC DOES NOT TRUST THAT PUBLIC OFFICIALS WILL DO WHAT IS RIGHT AND PERCEIVED AS FAIR, THE PUBLIC WILL BE LESS LIKELY TO BE EMPOWERED TO INFLUENCE THE GOVERNMENT'S DECISIONS. AND WITHOUT PUBLIC INPUT, THE GOVERNMENT CANNOT ADDRESS THE NEEDS AND PREFERENCES OF ITS RESIDENTS. SO, TYPES OF COMMUNICATIONS THAT ARE PROHIBITED UNDER THE BROWN ACT, IT'S POSSIBLE FOR MEMBERS TO VIOLATE THE BROWN ACT BY HAVING SERIAL COMMUNICATIONS OUTSIDE OF A PUBLIC MEETING. AND A SERIAL COMMUNICATION IS DEFINED AS EACH COMMUNICATION INVOLVING LESS THAN A MAJORITY OF MEMBERS. BUT THE TOTAL AMOUNT OF COMMUNICATIONS IN THE SERIES I INVOLVES A MAJORITY OF THE BODY OUTSIDE OF A PUBLIC MEETING. THIS MEANS THAT SERIES OF COMMUNICATIONS RESULTS IN A MEETING OUTSIDE OF THE PUBLIC'S VIEW, WHICH IS NOT ALLOWED UNLESS THE MEETING IS PERMITTED BY CLOSED SESSION RULES, WHICH WE'LL COVER LATER. SINCE THESE COMMUNICATIONS CAN RESULT IN A MEETING OF A BODY, THEY'RE SOMETIMES REFERRED TO AS SERIAL MEETINGS. SERIAL COMMUNICATIONS ARE PROHIBITED UNDER THE BROWN ACT. COMMUNICATIONS BETWEEN MEMBERS THAT MAKE UP LESS THAN A MAJORITY OF THE BODY ARE OKAY. HOWEVER, SUCH COMMUNICA ARE OKAY UNDER THE BROWN ACT, EXCUSE ME. SUCH COMMUNICATIONS ABOUT ADDING AN ITEM TO THE AGENDA OR WORKING ON A RECOMMENDATION IN AN AD HOC COMMITTEE ARE EXAMPLES OF COMMUNICATIONS THAT ARE NOT PROHIBITED UNDER THE BROWN ACT. HOWEVER, MEMBERS GENERALLY SHOULD NOT TRY TO GET OTHER MEMBERS TO FORM A DECISION OR TO GET A CONCURRENT OCCURRENCE OUTSIDE OF THE PUBLIC MEETING. ALTHOUGH CONTACT BETWEEN TWO MEMBERS WOULD NOT BE A MAJORITY OF THE BODY, THE COMMUNICATION COULD CONTINUE IN A CHAIN FASHION AND RESULT IN WHAT IS KNOWN AS COLLECTIVE CONCURRENCE, OR THAT THE MEMBERS ARE TRYING TO COME TO A DECISION OUTSIDE OF A PUBLIC MEETING BECAUSE ONE PARTY TO THE COMMUNICATION MAY UNKNOWINGLY PARTICIPATE IN WHAT BECOMES A COLLECTIVE CONCURRENCE, WHICH VIOLATES THE BROWN ACT. THE BEST PRACTICE IS TO ENGAGE IN ALL DISCUSSIONS ABOUT MATTER WITHIN THE BODY'S JURISDICTION AT A NOTICED PUBLIC MEETING. THIS ENSURES THAT YOU ARE PROTECTING THE PUBLIC'S RIGHT TO PARTICIPATE AND DO PROCESS RIGHTS WITH ANY PARTIES INVOLVED. SO THERE ARE A FEW WAYS THAT SERIAL COMMUNICATIONS CAN HAPPEN. THE FIRST IS KNOWN AS A HUB AND SPOKE. THIS IS ONE WHERE MEMBERS CONTACT ALL OR A MAJORITY OF THE OTHER MEMBERS. THE NEXT ONE IS A DAISY CHAIN. AND THIS IS WHERE ONE MEMBER CONTACTS ANOTHER MEMBER, AND THEN THAT MEMBER CONTACTS ANOTHER MEMBER, AND SO ON AND SO FORTH UNTIL ALL A MAJORITY OF THE BODY HAS BEEN CONTACTED. AND IT'S IMPORTANT THAT YOU UNDERSTAND THAT SERIAL COMMUNICATIONS CAN ALSO INCLUDE EMAILS, TEXTS, OR SOCIAL MEDIA COMMUNICATIONS INVOLVING A MAJORITY OF THE MEMBERS. THIS MEANS THAT YOU CAN BE INVOLVED IN A SERIAL COMMUNICATION IF MAJORITY OF YOUR BODY COMMENTS ON LIKES, USES, EMOJIS OR SHARES THE SAME SOCIAL MEDIA POST. SO FOR OUR EXAMPLE OF A HUB, HUB AND SPOKE COMMUNICATION, WE'LL SAY A MEMBER CONTACTS ALL THE OTHER MEMBERS TO ENSURE THAT THEY VOTE YES TO SUPPORT AN ITEM UNDER THE BROWN ACT. SINCE THE MAJORITY OF THIS BODY IS THREE MEMBERS, THE ORIGINAL MEMBER CAN ONLY COMMUNICATE TO ONE OTHER MEMBER, INCLUDING THE PRESIDENT ABOUT BODY BUSINESS WITHOUT VIOLATING THE BROWN ACT. HOWEVER, THE GOAL OF THE COMMUNICATION SHOULD NOT BE TO ATTEMPT TO FORM A DECISION OR CONCURRENCE WITH THE OTHER MEMBER. IF THE ITEM IS A HEARING OR SIMILAR PROCEEDING, THE MEMBER SHOULD NOT HAVE MADE UP THEIR MIND YET BECAUSE THEY HAVE NOT HEARD FROM ALL THE PARTIES OR RECEIVED [00:20:01] ALL OF THE EVIDENCE. YET. FOR A DAISY CHAIN WILL PRETEND THAT MEMBER BLUE CONTACTS MEMBER GREEN TO SEE IF HE WILL VOTE IN FAVOR OF AN ITEM ON THE NEXT AGENDA, MEMBER GREEN THEN CONTACTS MEMBER ORANGE ABOUT THE ITEM WHO THEN CONTACTS MEMBER PINK. IN THIS EXAMPLE, WE HAVE FOUR OUT OF FIVE MEMBERS CONTACTING EACH OTHER, WHICH IS MORE THAN A MAJORITY OF THE BODY ON OUR FIVE PERSON BODY. MEMBER BLUE CAN ONLY CONTACT MEMBER GREEN ABOUT THE AGENDA ITEM. ANY OTHER COMMUNICATIONS ABOUT THE AGENDA ITEM OUTSIDE OF THE MEETING WOULD BE A VIOLATION OF THE GROUND ACT. SO BE AWARE THAT DAISY CHAIN COMMUNICATIONS AND ALSO CAN ALSO COME UP IN TEXT OR EMAIL WHERE A MESSAGE IS FORWARDED TO ONE OR MORE MEMBERS AT A TIME. AS MENTIONED EARLIER, SERIAL COMMUNICATIONS CAN HAPPEN BY EMAIL, TEXT, OR SOCIAL MEDIA. THEY CAN OCCUR ON A REPLY ALL TO A MESSAGE. SO YOU WANNA BE CAREFUL WHEN YOU REPLY TO AN EMAIL MESSAGE OR SOMETHING SIMILAR TO SCENARIO THAT I'M ABOUT TO EXPLAIN. UM, IN THE FOLLOWING EXAMPLE, MEMBER BLUE POSTS ON SOCIAL MEDIA ABOUT AN ISSUE THAT WILL COME BEFORE THE BODY. AND IT IS LIKED BY MEMBER GREEN, SHARED BY MEMBER ORANGE, COMMENTED ON BY MEMBER PINK AND RETWEETED BY MEMBER RED. BY THE END OF THIS SERIES, A MAJORITY OF THE BODY HAS COMMUNICATED ABOUT THE AGENDA ITEM AND MAYBE EVEN COME TO A DECISION DEPENDING ON THE COMMENTS FOR EACH POST. AND THAT VIOLATES THE BROWN ACT. SERIAL COMMUNICATION CAN ALSO HAPPEN ON SOCIAL MEDIA, WHERE A MAJORITY OF THE BODY ALT LIKE A COMMENT ON THE SAME SOCIAL MEDIA POST. BOTH EXAMPLES ARE PROHIBITED BY THE BROWN ACT. SO THE BEST THING YOU CAN DO AS A MEMBER IS TO NOT ENGAGE ON SOCIAL MEDIA WITH OTHER MEMBERS ABOUT MATTERS WITHIN THE SCOPE AND DUTIES OF THIS BODY, AND TO AVOID GROUP TEXTS OR EMAILS OR WITH OTHER MEMBERS. IF STAFF SENDS A COMMUNICATION TO THE WHOLE BODY, TRY TO AVOID REPLYING ALL TO RESPOND. YOU ALWAYS HAVE A RIGHT TO ENGAGE WITH THE COMMUNITY, BUT BECAUSE YOU ARE SUBJECT TO THE BROWN ACT, BE MINDFUL THAT ENGAGING WITH THE COMMUNITY ON SOCIAL MEDIA ABOUT ISSUES WITHIN THE SCOPE OF DUTIES OF YOUR BODY, RISKS THAT OTHER MEMBERS OF YOUR BODY MAY REACT TO THE SAME POST, WHICH COULD RESULT IN A VIOLATION OF THE BROWN ACT. BE MINDFUL ALSO OF MEMBERS OF THE BE MINDFUL ALSO OF MEMBERS OF THE PUBLIC WHO MAY VIOLATE THE BROWN ACT WHEN SPEAKING TO YOU BY COMMUNICATING TO YOU ABOUT HOW OTHER MEMBERS PLAN TO VOTE ON A MATTER. IF THIS HAPPENS, IT'S BEST TO ASK THE INDIVIDUAL TO STOP SHARING THE INFORMATION AND OR DISCONTINUE THE CONVERSATION. YOU CAN POLITELY TELL THEM THAT THE BROWN ACT DOES NOT ALLOW YOU TO KNOW HOW OTHER MEMBERS ARE GOING TO VOTE, UM, BEFORE A MEETING. THE BROWN ACT DOES HAVE EXCEPTIONS THAT ALLOW FOR CERTAIN KINDS OF COMMUNICATIONS BY MEMBERS OUTSIDE OF A PUBLIC MEETING. AS A MEMBER, YOU MAY SPEAK WITH PEOPLE OUTSIDE THE BODY OR WITH INDIVIDUAL MEMBERS ABOUT AN ISSUE WITHIN THE SCOPE OF YOUR DUTIES ASSIGNED TO YOUR BODY. THIS EXCEPTION UNDER THE BROWN ACT RECOGNIZES THE RIGHT TO DISCUSS MATTERS WITH CONSTITUENTS, ADVOCATES, CONSULTANTS, REPORTERS, STAFF, AND COLLEAGUES. HOWEVER, AS WE DISCUSSED EARLIER IN THIS PRESENTATION, IF YOU SPEAK WITH OTHER COMMISSIONERS ABOUT SOMETHING WITHIN THE SCOPE OF THE DUTIES OF YOUR BODY, YOU MUST SPEAK TO LESS THAN A MAJORITY TO COMPLY WITH THE BROWN ACT. THIS ALSO MEANS THAT AS COMMISSIONER, YOU CAN MEET WITH UTILITY STAFF AND COMMUNITY MEMBERS, AND THAT THE PRESIDENT CAN ALSO EMAIL OR PLAN THE AGENDA FOR A MEETING WITH STAFF WITHOUT VIOLATING THE BROWN ACT. THE BROWN ACT ALSO ALLOWS FOR A MAJORITY OF MEMBERS AT A CONFERENCE THAT'S OPEN TO THE PUBLIC, LOCAL PUBLIC MEETINGS, SUCH AS A COMMUNITY, COMMUNITY MEETING, OPEN MEETING OF ANOTHER BODY LIKE THE CITY COUNCIL, UM, SOCIAL OR CEREMONIAL EVENTS LIKE A BIRTHDAY PARTY OR A RIBBON CUTTING OF A NEW BUSINESS WITHIN THE CITY. HOWEVER, YOU CANNOT DISCUSS MATTERS OF THE PUBLIC UTILITIES COMMISSION WITHOUT WITH THE OTHER MEMBERS AT THESE EVENTS. SO NOW WE'LL TALK ABOUT AGENDA POSTING REQUIREMENTS FOR BOARD MEETINGS. MEETING AGENDAS ARE AN IMPORTANT PART OF COMPLYING WITH THE BROWN ACT. IT PUTS THE PUBLIC ON NOTICE OF ITEMS THAT WILL BE DISCUSSED AT THE BODY'S MEETING SO THEY CAN DECIDE WHETHER TO ATTEND THE MEETING OR PROVIDE PUBLIC COMMENT. REGULAR MEETINGS ARE MEETINGS OCCURRING AT DATES, TIMES, AND LOCATIONS SET BY RESOLUTION. ORDINANCE, OR OTHER FORMAL ACTION BY THE BODY AGENDAS FOR REGULAR MEETINGS MUST BE POSTED 72 HOURS PRIOR TO THE BODY MEETING. SPECIAL MEETINGS ARE MEETINGS CALLED BY THE PRESIDENT OR MAJORITY OF THE BODY TO DISCUSS ONLY DISCREET ITEMS ON THE AGENDA AND ARE SUBJECT TO 24 HOUR POSTING REQUIREMENTS REGARDING WHAT SHOULD BE IN THE AGENDA DESCRIPTION. THE BROWN ACT REQUIRES THAT AGENDAS MEET. FOLLOWING REQUIREMENTS MUST INCLUDE A BRIEF GENERAL DESCRIPTION OF EACH ITEM. THE AGENDA MUST INFORM THE PUBLIC OF THE SCOPE OF THE BODY'S INTENDED PLANS SO THE PUBLIC CAN DECIDE WHETHER OR NOT TO PARTICIPATE. THE DATE, TIME, AND LOCATION OF THE MEETING MUST BE INCLUDED ON THE AGENDA, AND [00:25:01] THE AGENDA MUST BE POSTED IN A LOCATION FREELY ACCESSIBLE TO THE PUBLIC. WHERE CAN MEETINGS BE HELD? UNDER THE BROWN ACT? MEETINGS MUST BE HELD WITHIN THE BOUNDARIES OF THE CITY UNLESS A SPECIFIC EXEMPTION APPLIES AND MEETINGS MUST BE ACCESSIBLE UNDER THE AMERICANS WITH DISABILITY ACT. DISABILITIES ACT. THE BROWN ACT AFFORDS THE PUBLIC THE RIGHT TO ACCESS PUBLIC MEETINGS AND RECORDS OF PUBLIC AGENCIES, WHICH INCLUDES THE RIGHT LISTED ON THIS SLIDE. PUBLIC HAS THE RIGHT TO COMMENT ON ANY MATTER ON THE AGENDA AND WITHIN THE BODY SUBJECT MATTER JURISDICTION, EVEN IF THE MATTER IS NOT ON THE AGENDA. THIS IS KNOWN AS NON AGENDA PUBLIC COMMENT. THE PUBLIC ALSO HAS THE RIGHT TO RECORD THE MEETINGS WITH AN AUDIO OR VIDEO RECORDER, OR TAKE PHOTOGRAPHS IN A NON-DISRUPTIVE MANNER. PUBLIC ALSO HAS THE RIGHT TO REVIEW AGENDAS AND OTHER NON-CONFIDENTIAL MATERIALS DISTRIBUTED TO A MAJORITY OF THE BODY. THERE ARE STRICT RULES THAT REQUIRE THE PUBLIC TO RECEIVE COPIES. AT THE SAME TIME ANY WRITINGS ARE DISTRIBUTED TO A MAJORITY OF THE BODY. THE PUBLIC HAS THE RIGHT TO ATTEND A BODY MEETING WITHOUT REGISTERING OR IDENTIFYING THEMSELVES, SUCH AS GIVING THEIR NAME. SECRET BALLOTS ARE PROHIBITED AND ALL VOTES MUST BE CAST IN PUBLIC EXCEPT FOR VOTES ALLOWED IN CLOSED SESSION. THIS PROTECTS THE RIGHT OF THE PUBLIC TO WITNESS THE VOTES OF THE BODY. SO FOR CLOSED SESSIONS, THESE ARE MEETINGS THAT TAKE PLACE IN PRIVATE WITHOUT THE ATTENDANCE OF THE PUBLIC OR PRESS. SINCE THE PUBLIC HAS A CONSTITUTIONAL RIGHT TO ACCESS PUBLIC MEETINGS, CLOSED SESSION MEETINGS ARE ONLY ALLOWED FOR SPECIFIC REASONS. UNDER THE BROWN ACT, SUCH AS ANTICIPATED OR PENDING LITIGATION, PUBLIC EMPLOYMENT MATTERS OR PUBLIC SECURITY, OTHER KEY INFORMATION IS PROVIDED IN THIS SLIDE. MOST ADVISORY BODIES IN THE CITY ARE NOT ABLE TO HOLD CLOSED SESSIONS DUE TO THE NATURE OF THEIR WORK. CITY STAFF AND THE CITY ATTORNEY'S OFFICE CAN ASSIST WITH WHETHER YOUR BODY CAN HOLD A CLOSED SESSION. IT'S IMPORTANT THAT THE RULES FOR CLOSED SESSIONS ARE STRICTLY ADHERED TO. SO THE PUBLIC'S RIGHTS ARE PROTECTED. VIOLATIONS OF THE BROWN ACT CAN RESULT IN CIVIL LAWSUITS OR CRIMINAL PENALTIES. ANY INTERESTED PARTY CAN BRING A CIVIL LAWSUIT TO INVALIDATE ACTIONS OF A BODY THAT ALLEGEDLY VIOLATED THE BROWN ACT. AND TO PREVENT FUTURE VIOLATIONS OF THE BROWN ACT, THE BODY WILL HAVE AN OPPORTUNITY TO CURE THE ALLEGED VIOLATIONS. AND THE SUCCESSFUL PARTY MAY BE AWARDED COSTS AND ATTORNEY'S FEES. AS AN INDIVIDUAL, YOU CAN RECEIVE A MISDEMEANOR FOR VIOLATING THE BROWN ACT IF THE COURT FINDS YOU INTENDED TO DEPRIVE THE PUBLIC OF INFORMATION. SO THAT'S WHY IT'S IMPORTANT TO ADHERE TO THE BROWN ACT. HERE IS A LIST OF THINGS THAT YOU SHOULD DO, UH, IN ORDER TO MAKE SURE YOU ARE COMPLYING WITH THE BROWN ACT. AND HERE IS A LIST OF DON'TS. AND BEFORE, UM, I COMPLETE THIS PRESENTATION, UM, JUST MAKE SURE THAT YOU DON'T TAKE ANY ACTION OR DISCUSS ANY ITEM THAT'S NOT ON THE AGENDA. AND DON'T VOTE OUTSIDE THE PUBLIC'S VIEW UNLESS A CLOSE SECTION SESSION EXCEPTION APPLIES. DO NOT POLL OR DISCUSS ISSUES WITH MEMBERS TO COME TO A DECISION OUTSIDE OF A PUBLIC MEETING. WORKING WITH LESS THAN A FORUM OF THE BODY ON A RECOMMENDATION IN AN AD HOC IS OKAY, BUT YOU SHOULD NOT DISCUSS WHAT YOU'RE WORKING ON WITH MEMBERS WHO ARE NOT APPOINTED TO THE AD HOC. DO NOT DISCUSS MATTERS OF THE BODY AMONG OTHER MEMBERS AT EVENTS ALLOWED UNDER THE BROWN ACT LIKE CONFERENCES OPEN TO THE PUBLIC, OTHER PUBLIC MEETINGS OF A BODY OR FOR THE PUBLIC AND SOCIAL OR CEREMONIAL EVENTS. THAT CONCLUDES MY PRESENTATION. IF YOU HAVE ANY QUESTIONS, I'M HAPPY TO TAKE NOW. THANK YOU. MARSHA, ARE THERE ANY PUBLIC COMMENTS? YES, PLEASE. SO THIS IS MY FIRST TIME ATTENDING THIS, SO I DON'T KNOW IF I ADDRESS MYSELF AS SAYING, HI, I'M TERRY RIVERS , BUT, UM, SO I GO TO THE COUNCIL MEETINGS AND WHEN WE GET THE AGENDA, SOME OF THE PA UM, PRESENTATIONS ARE NOT AVAILABLE UNTIL THE MEETING HAS ALREADY BEGAN. SO WOULD THAT BE A VIOLATION OF THE BROWN ACT? OH, SO YOU GUYS DON'T ANSWER QUESTIONS EITHER. DO I JUST ASK AND THEN I JUST SIT DOWN HOW THAT'S HOW IT HAPPENS IN THE COUNCIL MEETING. SO NOBODY REALLY RESPONDS. WE CAN HAVE A MEMBER OF THE STAFF, UH, TALK TO YOU AFTERWARDS. GO FOR THAT. OKAY. SO THAT'S MY THING. SOMETIMES I'M TRYING TO GET THE INFORMATION SO I CAN STUDY THE INFORMATION BEFORE I COME TO THE MEETING, BUT ALL THE INFORMATION IS NOT PRESENT AT THE TIME OF THE MEETING. OKAY, THANK YOU. ANY OTHER PUBLIC COMMENTS? ALRIGHT, ANY COMMISSIONER COMMENTS? YES, SIR, THIS IS MARSHA. UM, ARE PRESENTATIONS REQUIRED TO BE AVAILABLE PUBLICLY BEFORE THE MEETING, UH, AS RE UH, UNDER THE BROWN ACT? THEY NEED TO BE MADE AVAILABLE AT THE SAME TIME, UM, [00:30:01] AS THEY ARE AVAILABLE TO THE MAJORITY OF THE BODY. SO, UM, IF, IF THE PRESENTATION IS GIVEN TO ALL BOARD MEMBERS, LET'S SAY, UM, 24 HOURS IN ADVANCE OF THE MEETING, THEN IT SHOULD ALSO BE AVAILABLE TO PUBLIC. AND, AND I'LL JUST JUST COMMENT. AS A FORMER MEMBER OF A FEW PUBLIC BODIES AND AGENCIES, UM, INCLUDING THE CITY COUNCIL, UM, THAT WAS A SOURCE OF FRUSTRATION FOR A LOT OF TIME, FOR A LONG TIME. I MEAN, OFTENTIMES, UM, STAFF PROBABLY UP LATE AT NIGHT PUTTING TOGETHER PRESENTATIONS FOR THE NEXT DAY AND WE WOULDN'T SEE THEM UNTIL, YOU KNOW, MAYBE AN HOUR BEFORE THE, THE, THE MEETING WOULD START OR EVEN DURING THE MEETING. UM, OFTENTIMES WE, WE WOULD GET THE PRESENTATIONS AS, AS IT AS THEY WERE BEING, UM, PRESENTED. AND SO, UM, THAT, THAT'S AN AREA I THINK WE COULD WORK ON IF POSSIBLE. BUT, UH, UNDERSTANDING HOW, HOW, HOW THINGS WORK, UM, IN BUREAUCRACY AS WELL AS, OR ELECTED OFFICES, IT'S VERY DIFFICULT TO, UM, TO HAVE THAT INFORMATION, YOU KNOW, AHEAD OF TIME SOMETIMES, UH, PARTICULARLY WHEN YOU'RE TALKING ABOUT TIMELY INFORMATION LIKE BUDGETS AND, UM, OTHER PRESENTATION. SO THANK YOU SO MUCH. THANK YOU COMMISSIONER AUSTIN. ANY OTHER COMMISSIONER COMMENTS? ALRIGHT, WE HAVE A MOTION TO RECEIVE AND FILE ALL THOSE IN FAVOR, PLEASE SAY AYE. AYE. AYE. ANY OPPOSED? NONE. THANK YOU. MOVING ON TO AGENDA ITEM NUMBER [5. 26-54861 Recommendation to adopt Request for Proposal UT-26-305 and award a contract to Well Home Construction for Water Intrusion Assessment and Mitigation Services, in the amount of $1,502,300, plus a 10% contingency of $150,230, for a total amount not to exceed $1,652,530 for a one-year period, with the option to extend the term for up to one additional year, at the discretion of the General Manager, and authorize the General Manager to execute all documents necessary to enter into the contract, including any necessary subsequent amendments.       Suggested Action: Approve recommendation. ] FIVE, ADOPT REQUEST FOR PROPOSAL UT 2 6 3 0 5 AND AWARD A CONTRACT TO WELL HOME CONSTRUCTION FOR WATER INTRUSION ASSESSMENT AND MITIGATION SERVICES. IN ORDER TO RECEIVE AN OR IN ORDER TO HEAR THE PRESENTATION, MAY I PLEASE HAVE A MOTION? SO THANK YOU. UH, CALL ON TN SANDERS, PLEASE. MORNING, PRESIDENT SCOTT AND COMMISSIONERS. UM, THANK YOU FOR THIS OPPORTUNITY TO PRESENT. MY NAME IS ION SANDERS AND I'M A CAPITAL PROJECTS COORDINATOR WITH THE FACILITIES AND SUPPORT SERVICES TEAM. UH, THE ITEM I BRING BRING BEFORE YOU TODAY IS ITEM NUMBER FIVE, WATER INTRUSION AND MITIGATION AT THE WARDLOW CAMPUS AND WATER TREATMENT PLANT. SO TODAY I WILL BE GOING OVER THE BACKGROUND INFORMATION OF THIS PROJECT AS WELL AS THE WORK SCOPES. UH, WORK SCOPE OF WORK INTENDED THE PROCUREMENT SUMMARY AS FOLLOWED BY STAFF RECOMMENDATION. THE BACKGROUND OF THIS PROJECT IS LONG BEACH PUBLIC UTILITIES DEPARTMENT'S CRITICAL INFRASTRUCTURE AT THE WARLOW FACILITIES AND TREATMENT PLANT IS CURRENTLY FACING SEVERE ACCELERATED DEGRADATION DUE TO SYSTEMATIC WATER INTRUSION. OUR LEGACY BUILDING ENVELOPE DRAINAGE SYSTEMS HAVE EFFECTIVELY FAILED. THIS HAS LED TO ACTIVE INFILTRATION THAT WITHOUT IMMEDIATE INTERVENTION PLACES DEPARTMENT AT HIGH RISK FOR CATASTROPHIC EQUIPMENT FAILURE, MOLD RELATED HEALTH LIABILITIES, AND REVERSIBLE STRUCTURAL ROCK. CURRENTLY WE ARE BETWEEN THIS, THE SECOND AND THE THIRD STAGE. THIS WATER INTRUSION AND MITIGATION PROJECT IS MORE THAN JUST A REPAIR. IT IS A MANDATORY DEFENSE MEASURE TO PREVENT A TOTAL LOSS OF FUNCTIONALITY WHILE WE DEVELOP LONG-TERM CAPITAL PROJECTS. WE MUST ACT NOW TO AVOID SIGNIFICANT HIGHER EMERGENCY LOSS AND COSTS AND POTENTIAL SERVICE OUTAGES BY TARGETING THESE SPECIFIC VULNERABILITIES, SPECIFICALLY THE OUTDATED ENVELOPES AND FAILING SKYLIGHT ASSEMBLIES. WE ARE IMPLEMENTING THE INTERIM CIVILIZATION NECESSARY TO PROTECT OUR SYSTEM, ESSENTIAL SYSTEMS AND ENSURE A SAFE AND OPERABLE ENVIRONMENT FOR OUR STAFF. THE BACKGROUND OF THIS, UH, I'M HERE TO GIVE YOU SOME BACKGROUND. UM, THESE ARE FAILING CONDITIONS CURRENTLY AT THE WARLOW CAMPUS. THIS INCLUDES UNDERSIZED, RUSTING AND LEAKING GUTTER ASSEMBLIES, FIELD EXTERIOR WATERPROOFING AT AND BELOW GRADE LEVEL, AS WELL AS PERFORATED DRAINAGE. PIPES ARE CURRENTLY SITE RECYCLING WATER BACK INTO THE GROUNDS OF THE BUILDING PERIMETER. HERE ARE CURRENT, UH, FIELD CONDITIONS AT THE TREATMENT PLANT. UM, ADDER, UH, ACTIVE WATER LEAKAGE AT NEARLY ALL JOINTS AND FLASHINGS FAILING TILE GROUT AND AT DOOR THRESHOLDS. PONDING WATER BEHIND ELASTOMERIC PAINT AND STEEL COLUMN, UH, PENETRATIONS. IMPROPER SITE SLOPING LEADS TO WATER PONDING DIRECTLY AT EXTERIOR DOOR LANDINGS AS WELL AS ACCELERATED ROOF DEGRADATION. SO THE SCOPE OF WORKS INTENDED INCLUDES BUILDING SPECIFIC WATERPROOFING AND REPAIRS, UH, SPECIALIZED MITIGATION AND INTER RESTORATION, AS WELL AS GENERAL CON UH, CONDITIONS AND SITE MANAGEMENT BY THE CONTRACTORS. TO OBTAIN THIS, UH, SUPPORT FOR THIS PROJECT, LONG BEACH PUBLIC UTILITY STAFF ISSUED A REQUEST FOR PROPOSAL [00:35:01] ON DECEMBER 23RD, 2025. THE SELECTION PROCESS YIELD THE FOLLOWING RESULTS. 47 POTENTIAL VENDORS WERE NOTIFIED OF THE OPPORTUNITY TO PROPOSE SEVEN VENDORS ACKNOWLEDGED ONE BID WAS RECEIVED AND OUT WELCOME CONSTRUCTION WAS SELECTED. STAFF RECOMMENDATION IS TO ADOPT REQUEST FOR PROPOSAL UT 26 DASH 3 0 5 AND AWARD A CONTRACT TO WELL HOME CONSTRUCTION FOR WATER INTRUSION ASSESSMENT AND MITIGATION SERVICES IN THE AMOUNT OF $1,502,300, PLUS A 10% CONTINGENCY OF $150,230 FOR A TOTAL AMOUNT NOT TO EXCEED $1,652,530 FOR A ONE PERIOD ONE YEAR PERIOD WITH THE OPTION TO EXTEND THE TERM FOR UP TO ONE ADDITIONAL YEAR AT THE DISCRETION OF THE GENERAL MANAGER AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE ALL DOCUMENTS NECESSARY TO ENTER INTO CONTRACT, INCLUDING ANY NECESSARY SUBSEQUENT AMENDMENTS. AND THIS CONCLUDES MY PRESENTATION. THANK YOU COMMISSIONERS FOR YOUR TIME. I'M HAPPY TO ANSWER ANY QUESTIONS TO THE BEST OF MY ABILITIES. THANK YOU MS. SANDERS. UH, ARE THERE ANY PUBLIC COMMENTS? YES, SIR. UH, YOU'LL NEED TO STEP TO THE MICROPHONE. NO, GOOD MORNING EVERYONE. MY NAME'S ROGELIO MARTINEZ, LONG BEACH MAYORAL CANDIDATE. MY TWO QUESTIONS ARE, SO TYPICALLY WHEN WE AWARD SOMEONE A BID, WE SEE THE, UH, CITY THAT THE, THAT THE BUSINESSES THAT THE BUSINESS IS FROM. AND IN THIS CASE, UH, WHERE IS THE WELL HOME CONSTRUCTION? WHERE IS THE CITY THAT, UH, WHERE ARE THEY BASED? ARE THEY A LONG BEACH CITY? SO, UH, WITH PUBLIC COMMENT, YOU'RE WELCOME TO, UH OH, BUT IT'S NOT BACK YOU WOULD LIKE, UH, IF YOU WOULD LIKE TO SPEAK TO A STAFF MEMBER AFTERWARDS, WE'RE HAPPY TO PROVIDE THAT. GOTCHA. OKAY. SO THEN JUST PUBLIC COMMENT. YES, PLEASE. IS THERE LIKE A TIMER OR ANYTHING, OR IT'S JUST, UH, DO YOU HAVE, UH, THREE MINUTES? OKAY. GOTCHA. OKAY. WHEN IT COMES TO THE, UM, THE ONE YEAR PERIOD, SO TYPICALLY, UM, I GUESS WHEN IT COMES TO AWARDING A PROJECT, UM, HOPEFULLY I THINK THAT AS A CITY IT WOULD BE GOOD TO LOOK AT THE CRITERIA THAT WE AWARD PROJECTS. AND THE REASON WHY IS BECAUSE COST IS NOT, IS NOT ENOUGH, AND IT SHOULD NOT BE THE ONLY DETERMINING FACTOR. UM, I WORKED FOR THE LARGEST REFINING COMPANY IN THE, IN THE COUNTRY, AND WHEN WE AWARDED PROJECTS, WE DID IT ON COST, QUALITY AND SAFETY. THOSE WERE THE THREE MINIMUM. YOU CAN ADD MORE, BUT THOSE WERE, AGAIN, THE THREE MINIMUM COST, QUALITY AND SAFETY. SO THAT'S JUST LIKE A BEST PRACTICE TO MOVE FORWARD WHEN WE'RE APPROVING OR AWARDING A BID. WHEN IT COMES TO WATER TREATMENT, OBVIOUSLY THAT'S, IT'S EXTREMELY IMPORTANT. I DO NOT KNOW YET AT THIS TIME IF WE TAKE RECLAIMED WATER AS DRINKING WATER. SO I DON'T KNOW IF WE DO THAT CURRENTLY IN THE CITY. IF WE DO, DOES THE PUBLIC IS THE PUBLIC AWARE. AND THE ONLY REASON WHY I AM NOT AWARE OF THAT IS BECAUSE TYPICALLY RECLAIMED WATER, UM, TRANSMISSION LINES ARE PAINTED A CERTAIN COLOR AND THEY'RE LABELED AS SUCH SO THAT PEOPLE KNOW THAT IT'S RECLAIMED WATER THAT WE'RE CONSUMING IN OUR BODIES. AND I GUESS LASTLY, I WOULD JUST LIKE TO SAY THAT, UM, A 10% CONTINGENCY IS REASONABLE. THAT'S TYPICALLY WHAT IS AWARDED, UM, AND TYPICALLY A ONE YEAR PERIOD. UM, SO MOVING FORWARD WHEN IT COMES TO TIME, BECAUSE TIME EQUALS COST IN ANY PROJECT, HOPEFULLY THE PEOPLE THAT WE'RE AWARDING THE MONIES TO OPERATE IN WHAT'S KNOWN AS A GANTT CHART. AND A GANTT CHART IS SPECIFICALLY DESIGNED FOR RESOURCE LOADING HUMAN CAPITAL, RIGHT? SO THAT'S ONE THING THAT YOU LOOK AT. AND THEN MATERIAL AND THEN THE QUALITY OF THE MATERIAL. SO WITH ANY GANTT CHART, IT'S ABOUT QUALITY, TIME AND BUDGET, BUT [00:40:01] MAKING SURE THAT EVERYONE IS WORKING SAFELY ON THE JOB SITE. THANK YOU SO MUCH. THANK YOU, SIR. ARE THERE ANY OTHER PUBLIC COMMENTS? ARE THERE ANY COMMISSIONER COMMENTS? YES. SO FIRST OF ALL, UH, THANK YOU VERY MUCH FOR, FOR THE PRESENTATION. UM, AS, UM, CHAIR, MY CHAIR OF THE INFRASTRUCTURE COMMITTEE, YES. UM, WE WORK CLOSELY TOGETHER. WE, UM, HAD AN OPPORTUNITY TO, TO, TO TOUR SEVERAL OF THESE FACILITIES. AND JUST YESTERDAY WE, WE DID A TOUR, UH, COMMISSIONER PARKIN AND I, UH, WITH, WITH TY. AND, UH, ACTUALLY WITNESSED, UH, SOME OF THE, UH, THE DAMAGE, UH, FROM WATER, UM, AND, AND SOME OF THE FACILITIES, PARTICULARLY AT THE, UM, THE, UH, SPRING SITE AS WELL AS, UH, HERE, UM, ON, ON SITE HERE AT WARLOW. UM, AND SO THE, THE NEED IS, IS THERE, I THINK, UM, YOU KNOW, I THINK THE CONVERSATION, UM, THAT WE NEED TO HAVE AS, AS COMMISSIONERS IS WE LOOK AT, UH, FUTURE, UH, INVESTMENTS AND DECISIONS ABOUT THOSE, THOSE FACILITIES IS HOW MUCH AND, UM, DO WE WANT TO, TO INVEST, UH, BECAUSE WE MAY NEED TO INVEST SIGNIFICANTLY IN CONSTRUCTION OF NEW OFFICE SPACE, UM, AS WE ARE DEALING WITH THE CONSOLIDATION RECENTLY OF GAS AND WATER, UM, RESOURCES AND, AND SO, AND SEWER, UM, I'M SORRY, I DON'T WANT TO LEAVE OUT SEWER. NO, DO I WANNA BLOVIATE HERE? UM, THE POINT, BUT I DO WANT TO, UM, ASK STAFF REGARDING, YOU KNOW, PUBLIC COMMENT. UM, AND IT'S GOOD TO HAVE PUBLIC COMMENT. THANK YOU ALL FOR, FOR COMING. WE DON'T GET A LOT OF PUBLIC COMMENT HERE. THIS COMMISSION MEETING, UH, THIS IS AN OPPORTUNITY ALSO TO, TO, TO EDUCATE. UH, THERE'S A LOT OF, UH, INFORMATION, UH, AVAILABLE, UH, ON THE WEBSITES. UM, I'VE BEEN ON THIS COMMISSION JUST FOR A FEW MONTHS AND I FIND MYSELF LEARNING SOMETHING NEW EVERY DAY, UM, ABOUT THE OPERATIONS, THE COLORS OF THE PIPES, UM, RECLAIM WATER, UM, GROUNDWATER, UM, THERE, THERE, THERE'S, THERE'S, IT'S, IT'S A PLETHORA OF INFORMATION TO, UM, TO, TO, TO ABSORB. UH, SO NOR DO I EXPECT THE PUBLIC TO KNOW ALL OF WHAT ENGINEERS IN THIS ROOM AND EMPLOYEES IN THIS ROOM, MANY COMMISSIONERS KNOW. UH, SO, UM, I WILL ASK AND FOLLOW UP ON A QUESTION THAT WAS, UH, WAS ASKED AND THAT WAS RELATED TO THE, UM, THE, THE, UH, CONTRACTS. UM, AND, AND THE, UH, THE LOCAL SOURCE, THE LONG BEACH UTILITIES DEPARTMENT, AS I UNDERSTAND IT, FOLLOWS THE CITY'S CONTRACTING PRACTICE. IS THAT CORRECT? AND WE DO HAVE A LOCAL SOURCE PREFERENCE, IS THAT CORRECT? THAT THAT'S CORRECT. UNDER THE CITY GUIDELINES, IN THEIR SELECTION PROCESSES, THERE ARE WAYS TO EVALUATE PROPOSAL, UM, ASSESS WHETHER THE VENDOR HAS SELF REGISTERED, UH, MEETING CERTAIN CRITERIA. UH, CITI IS ONLY ONE OF THOSE CRITERIA. THERE'S MULTIPLE CRITERIA, UH, AND IN THE EVALUATION PROCESS TO THE EXTENT PERMITTED BY LAW, THEN THERE CAN BE PREFERENCES GIVEN IN TERMS OF SCORING PROPOSALS. SO THEREFORE IT'S EFFECTIVELY EVALUATED IN THAT CONTEXT. THANK YOU SO MUCH. I KNOW WE DO PUT A PREFERENCE ON, ON LOCAL, LOCAL CONTRACTORS, UM, IF POSSIBLE. UM, SO THANK YOU SO MUCH. THANK YOU COMMISSIONER TON. UH, VICE PRESIDENT CORDERO, THANK YOU VERY MUCH. THAT WAS A GREAT REPORT. UH, SO, SO IMPORTANT AND SO NEEDED, AND THANK YOU VERY MUCH FOR BEING SO THOROUGH. UM, MY QUESTION IS THIS IS, THIS IS AN INTERIM SOLUTION. SO IS THIS PROJECT FOR FULL COMPLETION ALREADY IN OUR CIP, UH, I'LL TURN TO TIAN AND THOMAS, DO YOU KNOW IF IT'S IN THE CIP PER SE? I DEFER . SO FOR CIP, THERE ARE TWO SEGMENTS FOR THE GAS CAMPUS. THAT'S 2027 FOR THE WATER, UM, CAMPUS. IT IS FOR 2026, IT IS BUDGETED IN THE WATER. CIP, UM, FOR THESE TWO CAMPUSES UNDER IN-HOUSE CONSTRUCTION WORKS IS NOT PART OF ENGINEERING CIP, BUT RATHER THE IN-HOUSE CIP COMPONENT. RIGHT. THANK YOU VERY MUCH. AND I WANNA THANK, UH, THE PUBLIC FOR COMING OUT AND SPEAKING, AND I AGREE. UH, AND, AND TO JOIN ON THAT. SO IN, IN THE BOARD LETTER, IT DOES IDENTIFY IN THE FISCAL IMPACT THAT AS FAR AS CIP, IT IS IN THE FISCAL YEAR 26 BUDGET, IT'S IN THERE AND IT IS PROJECTED. OKAY, PERFECT. SO GENERALLY SPEAKING, TO THE EXTENT THAT WE CAN PROVIDE THAT MUCH TRANSPARENCY, WE ALWAYS TRY TO INCLUDE IN THE FISCAL IMPACT THE SOURCE [00:45:01] OF FUNDS AND HOW THEY'RE GOING TO BE APPLIED. SO BECAUSE IT'S NOT IN THIS YEAR'S BUDGET, IT'S INTERIM SOLUTION, AND THEN WHEN IT IS IN THE BUDGET, IT'LL BE, WELL, CERTAIN PORTIONS OF THE PROJECT ARE WITHIN THE FISCAL YEAR 26 CIP, REGARDLESS OF WHERE IT IS, WHETHER IT'S IN HOST, IN-HOUSE CONSTRUCTION OR BY CONTRACTOR. AND THEN AFTER THAT, BECAUSE YOU HAVEN'T ADOPTED THE FISCAL YEAR 27 BUDGET YET, IT WILL BE INCLUDED IN THE PROJECTIONS FOR THAT SCOPE OF WORK THAT GOES INTO THAT FISCAL YEAR. THANK YOU. GREATLY APPRECIATE THAT. AND AGAIN, THANK YOU TO THE PUBLIC. IT'S ALWAYS REFRESHING TO HAVE PEOPLE AS INTERESTED AS WE ARE IN, UH, DOING THE JOB THAT WE DO. SO I APPRECIATE THAT. AND I, I JUST WANT TO ECHO, YOU KNOW, FOR MEMBERS OF THE PUBLIC ATTENDING, INDEED, I REALIZE THAT THE STRUCTURE OF PUBLIC COMMENT IS WHAT IT IS, BUT YOU HAVE SO GRACIOUSLY INFORMED EVERYBODY THAT STAFF IS ALWAYS READY AND WILLING AVAILABLE TO TAKE QUESTIONS AND ANSWER QUESTIONS OUTSIDE OF THE MEETING. THANK YOU FOR THAT. ANY OTHER COMMISSIONER COMMENTS? UH, APROPOS COMMISSIONER COMMENTS, I'D JUST LIKE TO MENTION THAT IF YOU'RE INTERESTED IN AGENDA ITEM FIVE ITEM, YOU'LL BE VERY INTERESTED IN THE PLANNING COMMITTEE COMING UP LATER THIS MORNING. UH, A LOT OF THESE ISSUES WILL BE DISCUSSED AND MUCH MORE. UH, SO ON THE MOTION, ALL THOSE IN FAVOR, PLEASE SAY AYE. AYE. ANY OPPOSED OR NONE? MOTION PASSES. MOVING ON TO AGENDA ITEM NUMBER [6. 26-54862 Recommendation to authorize the General Manager to support the Los Angeles County Water Plan (County Water Plan) to strategically align the Long Beach Utilities Department with the vision for water resilience in the County Water Plan.       Suggested Action: Approve recommendation. ] SIX, AUTHORIZE THE GENERAL MANAGER TO SUPPORT THE LOS ANGELES COUNTY WATER PLAN, KNOWN AS THE COUNTY WATER PLAN TO STRATEGICALLY ALIGN THE LONG BEACH UTILITIES DEPARTMENT WITH THE VISION FOR WATER RESILIENCE IN THE COUNTY WATER PLAN. UH, IN ORDER TO HEAR THE PRESENTATION, MAY I PLEASE HAVE A MOTION? I MOVE. SECOND. THANK YOU. UH, AND CALL ON ASSISTANT GENERAL MANAGER DIANA TANK. DIANA, GOOD MORNING, PRESIDENT SCOTT AND MEMBERS OF THE COMMISSION. UM, I'M PLEASED TO STAND HERE BEFORE YOU, DEB, REQUEST SUPPORT FOR THE LA COUNTY WATER PLAN. UM, AND ON THIS NEXT SLIDE, UM, WE HAVE A WONDERFUL PICTURE OF, UM, A GROUP OF THE FOUNDING MEMBERS OF THE PLAN OR FOUNDING CONTRIBUTORS. AND YOU MAY SEE A FAMILIAR FACE HERE. IT MUST HAVE BEEN A COLD DAY, UM, OUT AT A RESERVOIR IN LA COUNTY. UM, UNFORTUNATELY HE'S NOT LOOKING AT MY JOKES, SO WE'LL KEEP MOVING ON . YES, I, I, UM, I WAS, UM, IMPROMPTU ASKED TO ATTEND A FIELD TRIP. I WAS NOT DRESSED FOR THE FIELD TRIP, AND, UH, I HAVE ALREADY RECEIVED EXTENSIVE COMMENT ON MY FASHION CHOICES FOR A FIELD TRIP FROM MY FELLOW GENERAL MANAGER. SO I, I, I DID, DID HEAR THE OUTCOME OF YOUR JOKE, AND I, I I DESERVE EVERY ASPECT OF IT. ALL RIGHT, WONDERFUL. WELL, THIS PLAN IS ABOUT ALMOST THREE YEARS OLD, THAT TWO AND A HALF YEARS OLD NOW, IN DECEMBER OF 2023, THE LA COUNTY BOARD OF SUPERVISORS UNANIMOUSLY ADOPTED THE LA COUNTY WATER PLAN. UM, THE ITEM WAS REALLY BROUGHT FORTH BY SUPERVISOR HORVATH, AND UPON HER JOINING THE BOARD OF SUPERVISORS A NUMBER OF YEARS AGO, SHE REALLY TOOK A, AN INCREASED, UM, INTEREST IN WATER AND HAS TRULY CHAMPIONED WATER RESILIENCE ACROSS LA COUNTY, BECAUSE AS WE KNOW, WATER TOUCHES EVERYTHING. UM, SO, UM, NEVERTHELESS, WE WILL MOVE FORWARD ON THE FOUR FOCUS AREAS OF THE LA COUNTY WATER PLAN, WHICH WE CAN CON CONSIDER AS A STRATEGIC PLAN. SO THE COUNTY WATER PLAN ITSELF HAS FOUR, UM, FOCUS AREAS ARE WHAT WE'LL CALL TARGETS, AND THEN ABOUT 14 DIFFERENT STRATEGIES TO REACH THESE TARGETS. AND, UM, BEING THE LARGEST COUNTY IN THE COUNTRY, THE COUNTY CANNOT REACH THEIR TARGETS OF EVERY AGENCY, CITY, COUNTY, MUNICIPAL WATER SUPPLIER, PRIVATE WATER SUPPLIER, UM, CITIES THAT PROVIDE WATER IF ALL AGENCIES ARE NOT, UM, UNITED AND AT LEAST ALIGNED IN CONCEPT ON HOW TO, UM, ADDRESS WATER SUPPLY MATTERS IN, IN LA COUNTY. SO THE FOUR FOCUS AREAS, UM, IN THIS PLAN ARE REGIONAL WATER SUPPLY, WHICH IS MOST RELEVANT TO US, UM, RELATIVE TO THE FOUR FOCUS AREAS THAT WE HAVE HERE IN THE REGIONAL, UM, WATER SUPPLY AREA. UM, THE FOCUS AREAS AND THE TARGETS INCLUDED IN THAT ARE INCREASED LOCAL SUPPLY SOURCES BY 580,000 ACRE FEET, UM, PER YEAR. AND THIS IS NOT JUST FOR LONG BEACH, THIS IS FOR THE ENTIRE COUNTY THROUGH A NUMBER OF SOURCES, WHETHER IT'S, UM, LOCAL SUPPLY THROUGH RECYCLED WATER, LOCAL SUPPLY THROUGH, UM, SUPPOSE CONSERVATION MEASURES. UM, ADDITIONALLY, UM, LESS TRADITIONAL BUT POTENTIALLY LOCAL SUPPLY THROUGH STORMWATER CAPTURE, THROUGH GROUNDWATER RECHARGE, WHICH IS NOT ENTIRELY AN OPPORTUNITY THAT WE HAVE DOWN HERE IN LONG BEACH BECAUSE OF OUR LOCATION IN THE GROUNDWATER BASIN. BUT CERTAINLY IN AREAS OF, OF LA COUNTY, UM, NORTH OF LONG BEACH, THERE ARE OPPORTUNITIES SUCH AS THE WOODIER NARROWS AND SOME OTHER, UM, SMALLER PROJECTS THAT, UM, AGENCIES ARE DOING IN LOS NESS AND, AND OTHER PLACES, UM, WHERE, WHERE WE ARE ALIGNED WITH THE COUNTY. AND, UM, AND WE SHOULD NOT TAKE THIS FOR GRANTED, [00:50:01] EVEN THOUGH IT HAS BEEN TRUE, WHICH IS MEET A HUNDRED PERCENT OF WATER DEMAND, EVEN IN TIMES OF DROUGHT. SO THAT'S A VERY, VERY IMPORTANT METRIC. AND WHILE IT MAY SEEM DRACONIAN, UM, AS A**L HAD MENTIONED PREVIOUSLY IN OTHER AREAS OF THE COUNTRY, UM, AND EVEN THE WORLD IN TERAN AND MEXICO CITY ZERO DAY HAS BEEN A DAY WHEN THERE MAY NOT BE RELIABLE WATER IN MAJOR CITIES, UM, IS A REALITY IN CERTAIN PORTIONS OF THE WORLD. THAT HASN'T BEEN THE CASE HERE IN LA COUNTY, UM, BECAUSE OF THE DUE DILIGENCE THAT IS, UM, CONDUCTED AND, AND THE DAILY MONITORING OF GROUNDWATER SUPPLIES, THE WORK DONE BY METROPOLITAN, UM, AND THE INTERCONNECTIVITY BETWEEN AGENCIES SUCH AS LONG BEACH, UM, WATER REPLENISHMENT DISTRICT AND OTHERS TO ENSURE THAT WE DO HAVE SAFE AND RELIABLE WATER IN THE MOST AFFORDABLE MANNER POSSIBLE. AND THEN LAST BUT NOT LEAST IN THIS AREA, UM, OF THE PLAN, UM, ONE OF THE FOCUS, UM, AREAS IN THIS TARGET IS TO MAINTAIN ACCESS TO SIX MONTHS OF EMERGENCY WATER SUPPLIES. AND THAT IS, UM, IT, IT'S A TARGET THAT WAS PUT IN THE PLAN. OF COURSE, DIFFERENT, DIFFERENT REGIONS OF THE COUNTY HAVE DIFFERENT ACCESS TO VARYING DIFFERENT SUPPLIES OF WATER. DEAN THROUGH HIS WATER RESOURCE PLAN WILL BE WORKING ON OURS. AND WE ARE VERY FORTUNATE TO HAVE TWO SOURCES OF WATER IN OUR CITY WITH OUR GROUNDWATER AND ALSO METROPOLITAN IMPORTED WATER. METROPOLITAN IS A GUARANTEE OF WATER. AND SO BEING A METROPOLITAN MEMBER AGENCY IS, IS CRITICAL FOR US AS A PART OF MEETING THAT, THAT AREA. BUT THERE ARE UNFORTUNATELY SOME AREAS OF LA COUNTY THAT DON'T HAVE, UM, THESE TYPES OF RESOURCES. UH, THE OTHER FOCUS AREAS, WE'LL KIND OF BREEZE THROUGH GROUNDWATER MANAGEMENT AND QUALITY. THAT IS, UM, AN AREA THAT WE PRIMARILY RELY ON THE WATER REPLENISHMENT DISTRICT FOR, AND THEY ARE SUPPORTIVE OF THE COUNTY CLEAN WATER PLAN, UM, SMALL AT-RISK SYSTEMS IN LA COUNTY. UM, THESE, THESE SYSTEMS, SATIVA AND OTHERS ARE LESS KNOWN, UM, BUT NEVERTHELESS SERVE A COMMUNITY THAT LIVES IN THE SAME COUNTY AS WE DO. AND, UM, LIKE I MENTIONED EARLIER, NOT, MAY NOT ALWAYS HAVE ACCESS TO METROPOLITAN IMPORTED WATER OR LOCAL GROUNDWATER. AND SO THEY ARE MORE VULNERABLE THAN THAN WE ARE HERE. UH, AND THEN LAST BUT NOT LEAST, WATERSHED SET WATERSHED SEDIMENT MANAGEMENT, UM, WHICH HAS, UM, BEEN REALLY BROUGHT FORTH TO, UM, LIGHT GIVEN THE WILDFIRES, UM, AND THE SOMETIMES CONTAMINANTS THAT MAY BE FOUND AFTER A, A SIGNIFICANT WILDFIRE THAT LA COUNTY EXPERIENCED. UM, IN, EARLIER, EARLIER TWO YEARS AGO NOW, UM, IN, IN LONG BEACH, YOU MAY HAVE HEARD OUR OWN CITY COUNCIL DISCUSS, UM, TMDL OR TAKE TOTAL DAILY MAXIMUM LOADS AND PARTICULARLY RELATED TO TRASH. UM, IN MY PRIOR ROLE IN THE CITY, THAT WAS AN AREA THAT I'D WORKED, UM, SIGNIFICANTLY ON BECAUSE WE LIKE TO, TO NOT JOKE, BUT SAY THAT WE ARE AT THE BOTTOM OF THE KITCHEN SINK, WHERE AT THE BOTTOM OF TWO MAJOR RIVERS, THE LOS ANGELES RIVER AND THE SAN GABRIEL RIVER. AND SO ANYTHING THAT ENTERS THOSE RIVERS ENTERS OUR WATERWAYS, AND THAT'S A VERY IMPORTANT, UM, PIECE OF THE WATER MANAGEMENT PUZZLE. ALTHOUGH IT'S NOT POTABLE DRINKING WATER, IT STILL IS A WATER SOURCE, UM, RECREATIONAL WATER THAT OUR COMMUNITY INTERACTS WITH. AND ALL OF THESE THINGS, UM, COME TOGETHER TO, TO ADDRESS WATER IN LA COUNTY, WHICH IS WHAT THIS PLAN IS FOR. SO WE JUST WENT THROUGH EACH OF THOSE, BUT I THOUGHT THE EARLIER SLIDE WITH THE GRAPHICS WAS, UM, EASIER AND PRETTIER TO LOOK AT. UM, SO WE'LL CONTINUE MOVING ALONG. AGAIN, COLLABORATION. THIS IS NOT JUST A LONG BEACH UTILITIES MATTER, BUT DWP IS INVOLVED, UM, LOS ISTS, WRD, UM, YOU'LL, YOU'LL NOTE THAT SOME OF THE OTHER SUPPORTERS INCLUDE WEST BASIN. AND SO THESE ARE ALL WATER AGENCIES THAT LONG BEACH UTILITIES INTERACTS WITH, UM, ON A FREQUENT AND REGULAR BASIS. AND WE ARE ALL CONNECTED TOGETHER THROUGH THIS PLAN. AND SO HERE ARE SOME OF THE LOGOS FOR THAT. UM, WE INCLUDED LOGOS FOR THE AGENCIES IN THE SOUTHERN REGION OF THE COUNTY, BUT THERE ARE REACH, UH, AGENCIES IN THE NORTHERN PORTION OF THE COUNTY, INCLUDING MAIN SAN GABRIEL THAT ARE INVOLVED, LANCASTER AND OTHERS. AND THIS AGAIN, PLAN TRULY BRIDGES, UM, THE, THE LARGE, UH, LAND AREA THAT IS LA COUNTY. SO, UM, IN ORDER TO CONTINUE TO AFFIRMATIVELY, UM, AND MORE PUBLICLY SUPPORT THE COUNTY WATER PLAN, UM, WE ARE HERE TODAY TO ASK FOR YOUR SUPPORT AND, UM, YOUR AUTHORIZATION OF THE GENERAL MANAGER TO SUPPORT THE LA COUNTY, LA COUNTY WATER PLAN TO STRATEGICALLY ALIGN LONG BEACH UTILITIES WITH THE VISION FOR WATER RESILIENCE IN LA COUNTY. THANK YOU SO MUCH. THANK YOU. DIANA, ARE THERE ANY PUBLIC COMMENTS? YES, SIR. PLEASE STEP TO THE MICROPHONE. SO JUST BRIEFLY, MY QUALIFICATIONS IS I'M A LICENSED STEAM ENGINEER WITH THE, WITH THE LOS ANGELES DEPARTMENT OF BUILDING AND SAFETY. UM, I'M RETIRED, BUT CURRENTLY I CONSULT FOR THE [00:55:01] LARGEST ENERGY POWER GENERATION COMPANY, WHICH IS NRG, WHICH HAS 77 FLEETS ACROSS THE UNITED STATES. I JUST FINISHED UP A CAPITAL PROJECT TO MAINTAIN THE, UM, THE RELIABILITY OF THE IVAN PA POWER GENERATION SITE BY PRIM, UH, WHICH MADE POWER FOR TWO COMPANIES PG AND E AND, UM, EDISON. SO MY QUESTIONS PERTAINING TO THIS ARE, UM, HOW IS THE QUALITY OF THE SIX MONTH, UM, EMERGENCY, UH, WATER MAINTAINED? AND THEN IT WOULD BE GOOD FOR THE PUBLIC TO UNDERSTAND THE VARIOUS SOURCES THAT MAKE UP OUR POLL, OUR DRINKING WATER, AND, AND IN SUCH, UH, BECAUSE THE SOURCE AND THE QUALITY OF THE WATER DETERMINES THE COST. SO THINGS SUCH AS O-R-P-P-D-S, WHICH IS TOTAL DISSOLVED SOLIDS P WHICH IS A MEASURE OF, UM, ACIDITY OR BASIC AND CONDUCTIVITY, WHICH MEASURES, UM, SOLIDS. ALSO, YOU MENTIONED THE ALLEY RIVER AS A SOURCE AND THE SAN GABRIEL, SAN GABRIEL RIVER IS ANOTHER SOURCE, BUT I DID NOT HEAR ANYTHING ABOUT, ABOUT WELL WATER. SO DO WE HAVE ANY ACCESS TO WELL WATER WITHIN THE CITY OF LONG BEACH AND THEN STORM CAPTURE? SO THE CITY OF LOS ANGELES DOES A GOOD PROGRAM WHEN IT COMES TO ANY NEW BUILDING PERMIT ON A HOME IS THEY CAPTURE STORM WATER IN RESIDENCE IN 2 55 GALLON BARRELS THAT ARE MADE OUT OF HIGH RESIN, UH, PLASTIC. AND THAT WAS ALL THAT I WANTED TO ADD. THANK YOU SO MUCH FOR LISTENING. THANK YOU, SIR. ARE THERE ANY OTHER PUBLIC COMMENTS? ARE THERE ANY COMMISSIONER COMMENTS ON THE MOTION? UH, JUST WANT TO THANK, UH, UH, ASSISTANT DIRECTOR, GENERAL MANAGER, UM, DIANA TANG FOR THE EXCELLENT PRESENTATION. I THINK IT'S VERY IMPORTANT THAT THERE BE SOME INTEGRATION AND COORDINATION, UH, PARTICULARLY WITH THIS PRECIOUS RESOURCE THAT, THAT WE ARE, WE'RE STEWARDING HERE, UM, THROUGH, THROUGH LONG BEACH UTILITIES, MEANING WATER, UM, AND ALL OF THE OTHER AGENCIES THROUGHOUT LA COUNTY REGION. I WAS READING A A, A NEWS ARTICLE THIS MORNING ABOUT IN ANOTHER STATE WHERE DROUGHT SITUATIONS ARE, ARE REALLY, UM, IMPACTED, I WANT TO SAY SOMEWHERE IN NORTH CAROLINA, BUT, UM, YEAH, I, I FORGET THE STATE, BUT THEY, THEY'RE ACTUALLY, UM, RATIONING WATER. THEY'RE AT A LIKE 40%. THEIR, THEIR, THEIR AQUIFERS AND WELLS ARE, ARE JUST ABOUT DEPLETED. UH, AND IT'S, IT'S A REAL SITUATION. THIS TYPE OF COORDINATION, I BELIEVE WILL HELP US, UH, AVOID THOSE SITUATIONS IN, IN THE MOST POPULOUS AREA IN, IN THE COUNTRY HERE IN LOS ANGELES COUNTY. SO I FULLY SUPPORT THIS, THIS, UH, US BEING A PART OF THIS AND ENCOURAGE MY COLLEAGUES TO DO THE SAME. THANK YOU. THANK YOU. COMMISSIONER AUSTIN, VICE PRESIDENT CORD. THANK YOU, DIANE. I THINK THIS IS GREAT. DO YOU, ARE YOU, UM, WORKING COLLABORATIVELY OUTSIDE OF THIS WITH ALL OF THESE AGENCIES? BECAUSE THIS IS, UH, I THINK THAT'S IMPORTANT, THE COLLABORATIVE RELATIONSHIPS THAT WE HAVE THAT YOU'RE LEADING. THANK YOU. THIS IS A, UM, DEPARTMENT WIDE EFFORT, SO I KNOW ANNA TO, UM, REGULARLY ATTENDS THE GENERAL MANAGER MEETINGS AT METROPOLITAN THANK YOU, COMMISSIONER CORDERO FOR SERVING ON METROPOLITAN, BUT ALSO THE, THE CALIFORNIA COLORADO RIVERPORT. UM, AND THEN DEAN REGULARLY INTERACTS WITH, UM, HIS COLLEAGUES IN THE, THE WATER INDUSTRY AS WELL. I SHOULD ALSO PROBABLY SHARE THAT I CHAIR THE, UM, COUNTY SAFE CLEAN WATER REGIONAL OVERSIGHT COMMITTEE, WHICH OVERSEES, UM, ABOUT $250 MILLION OF CAPITAL PROJECTS A YEAR COUNTYWIDE FOR STORM WATER IMPROVEMENTS, WHICH ARE SUPPOSED TO HELP SUPPORT WATER SUPPLY, WATER QUALITY, AND NATURE-BASED IMPROVEMENTS. AND THAT IS PART OF THE LA COUNTY WATER PLAN AS WELL. SO, UM, THROUGHOUT OUR DIFFERENT ROLES HERE AT LONG BEACH UTILITIES, UM, MANY OF US PLAY A ROLE IN THIS IMPORTANT WORK. GREAT. THANK YOU SO MUCH AND, AND CONGRATULATIONS ON THE GOOD WORK THAT YOU AND THE TEAM HAVE DONE. UH, YOU MENTIONED DAY ZERO OR ZERO DAY THAT WAS BROUGHT UP AT METROPOLITAN A COUPLE OF DAYS AGO, AND, UM, IT IS VERY MUCH ON THE TOP OF EVERYONE'S HEAD THAT WE COULD APPROACH SOME POINT WHERE, WHERE WE'RE GONNA BE RESTRICTED ON OUR WATER USE. AND SO WE REALLY NEED TO BE DILIGENT ON THAT. SO I APPRECIATE THAT, UM, THAT WORK THAT YOU'RE DOING ON THAT. AND I, UH, I WANNA FOLLOW UP WITH WHAT COMMISSIONER AUSTIN SAID THAT THAT'S ONE OF, MAYBE ONE OF THOSE AREAS THAT WE SHOULD PROBABLY GET IN FRONT OF TOO. SO GREATLY APPRECIATE IT. I KINDA LOOK AT IT LIKE YOU GUYS ARE ALL DOING A ZONE DEFENSE [01:00:01] IN A BASKETBALL GAME WHERE YOU ALL GET TOGETHER, UH, THIS AGENCY, BUT ALSO OTHER AGENCIES WITHIN THE COUNTY TO KIND OF FIGURE OUT WHERE WE'RE GOING AND HOW WE CAN BEST MEET THE NEEDS OF OUR, OUR, UH, RESIDENTS. THANK YOU. THANK YOU GUYS. PRESIDENT CORDERO, UH, CHAIR RECOGNIZES GENERAL MANAGER VALUE. THANK YOU, PRESIDENT SCOTT. AND I JUST WANNA ECHO EVERYTHING THAT DIANA MENTIONED HERE ON THE COUNTY WATER PLAN. IT IS AN EXAMPLE OF HOW INTEGRATED THINGS ARE WHEN IT COMES TO WATER MANAGEMENT. OUR GROUNDWATER THAT IS A CRITICAL SUPPLY FOR US IN THE CITY, IS ANCHORED BY WHAT REPLENISHES THAT GROUNDWATER BASIN. AND WE ARE THE BENEFICIARIES OF LIVING IN SOUTHERN CALIFORNIA IN A REGION THAT IS BLESSED BY THE SAN GABRIEL RIVER. NOW, IN, IN THAT SENSE, UH, YOU CAN HAVE YOUR EXPERIENCE DRIVING UP THE 6 0 5 FREEWAY AND YOU CAN SEE THIS VAST AMOUNT OF LAND ALL AROUND YOU UNDER WHICH A GROUNDWATER BASIN UNDERLIES IT, AND YOU CAN ADMIRE THE BEAUTY OF GETTING WELL WATER FROM THAT. IT'S IMPORTANT TO NOTE THOUGH, THAT IN TERMS OF HOW THESE BASINS ARE REPLENISHED, IF I CAN BE A LITTLE BIT ENGINEERING AND TECHNICAL FOR A MOMENT, IS WHERE A VAST MAJORITY OF THE RAINFALL FALLS. SO IN THAT SENSE, WHEN YOU LOOK OUT AT THE SOUTHERN CALIFORNIA PLANE, YOU SEE A VAST AMOUNT OF LAND, BUT IN REALITY, THE EXTREME AMOUNT OF PRECIPITATION THAT FALLS IS UP IN THE MOUNTAINS. IT'S HARD TO IMAGINE BECAUSE IT'S NOT EASY TO GET THERE. BUT THE PICTURE THAT WAS TAKEN OF ME IS ONE OF TWO RESERVOIRS, MORRIS DAM, AND THEN THERE'S A RESERVOIR ABOVE IT. SAN GABRIEL RESERVOIR, EVEN MORE REMOTE AND HARD TO GET TO. THOSE ARE THE ANCHORS OF THE SAN GABRIEL RIVER SYSTEM THAT LOS ANGELES COUNTY PUBLIC WORKS MANAGES. THEY CAPTURE WATER IN THOSE RESERVOIRS AND THEN RELEASE THEM SLOWLY OVER TIME. IT REPLENISHES THE BASINS THAT BLESS ALL OF THE CITIES IN THE FOOTHILLS JUST BELOW THE MOUNTAINS, AND THEN MAKES ITS WAY AND REPLENISHES THE BASIN DOWN HERE. UH, THAT LONG BEACH IS A BENEFICIARY OF THE COUNTY WATER PLAN IS A COLLABORATIVE EFFORT AMONGST ALL AGENCIES. I'M VERY, VERY HAPPY THAT THE BOARD HAS CHOSEN TO HELP US SUPPORT IT. THAT PLAN HAS, AT ITS VERY CORE, IMPROVEMENTS TO THOSE RESERVOIRS THAT ALLOW IT TO CAPTURE THE MAXIMUM AMOUNT OF STORM WATER POSSIBLE TO BENEFIT THE BASINS AND BENEFIT ALL THE COMMUNITIES IN THE SOUTHERN CALIFORNIA PLANE BELOW THE MOUNTAINS. THANK YOU. THANK YOU, SIR. UH, ON THE MOTION, ALL THOSE IN FAVOR, PLEASE SAY AYE. AYE. AYE. ANY OPPOSED? NONE. THANK YOU. MOVING. I'M SURE THE COUNTY WOULD LOVE, UM, FOR THE BOARD TO ATTEND THE COUNTY WATER SUMMIT, WHICH IS AN ANNUAL EVENT. I THINK IT'S BEING HELD MAY 18TH THIS YEAR. THANK YOU, DIANA. WHERE IS IT IN? UH, MOVING ON. ITEM NUMBER [7. 26-54863 Recommendation to receive and file the Long Beach Public Utilities Department’s Annual Comprehensive Financial Report (ACFR) for the period ended September 30, 2025.       Suggested Action: Approve recommendation. ] SEVEN, RECEIVE AND FILE THE LONG BEACH PUBLIC UTILITIES DEPARTMENT'S ANNUAL COMPREHENSIVE FINANCIAL REPORT. THE FER FOR THE PERIOD ENDED SEPTEMBER 30TH, 2025. MAY I PLEASE HAVE A MOTION? I'LL MOVE. THANK YOU. UH, CALL ON MATTHEW PERE. GOOD MORNING COMMISSIONERS. THANK YOU. MY NAME IS MATTHEW PERILLA. I AM THE ACCOUNTING MANAGER HERE AT THE UTILITIES DEPARTMENT. AND, EXCUSE ME, CAN YOU HEAR ME? THANK YOU. BEFORE I START MY PRESENTATION, I JUST WANTED TO FIRST TAKE A MOMENT TO COMMEND THE FINANCE TEAM OR SOME OF ARE IN THE ROOM TODAY, UM, FOR ALL THEIR EFFORTS THROUGHOUT THE YEAR. UM, THE ER IS A PRODUCT OF THEIR DILIGENCE AND HARD WORK. AND ALSO I'D LIKE TO SPECIFIC, SPECIFICALLY RECOGNIZE DAN. HE'S IN THE CORNER OVER THERE. DAN WYNN IS OUR SENIOR ACCOUNTANT. HE'S A MAJOR CONTRIBUTOR TO COMPILING THE ER, AND I JUST WANTED TO SAY THANK YOU FOR ALL YOUR TEAM'S EFFORTS AND EVERYONE HE WILL TO A GREAT JOB THROUGHOUT THE YEAR. SO THANK YOU VERY MUCH. OKAY. SO WITH THAT, MY PRESENTATION THIS MORNING IS GOING TO TOUCH UPON INFORMATION OF THE PURPOSE OF THE ACTER AND ALSO THE IMPORTANCE OF THE ACTER. SO THE AFER PROVIDES TRANSPARENCY, ACCOUNTABILITY, AND THE OVERALL FINANCIAL HEALTH OF ANY GIVEN AGENCY. AS FINANCIAL STEWARDS OF RAY REPAIR MONEY, IT'S OUR DUTY TO BE TRANSPARENT, ACCOUNTABLE, AND COMPLIANT WITH ALL FINANCIAL STANDARDS AND REGULATIONS. THE ACT FOR ALSO HAS THREE MAIN COMPONENTS, WHICH INCLUDE THE INTRODUCTION, FINANCIAL, AND STATISTICAL SECTIONS. IN THE INTRODUCTION SECTION, YOU'LL FIND THINGS SUCH AS A WHAT'S CALLED A TRANSMITTAL LETTER, WHICH KIND OF SPEAKS TO THE BACKGROUND OF THE AGENCY IN THE INTRODUC, I'M SORRY. IN THE FINANCIAL SECTION, YOU'LL FIND ITEMS SUCH AS AN AUDITOR'S REPORT, THE MANAGER'S DISCUSSION AND ANALYSIS, THE FINANCIAL STATEMENTS THEMSELVES, AND NOTES TO THE FINANCIAL STATEMENTS. IN THE STATISTICAL SECTION, YOU'LL FIND ITEMS SUCH AS FINANCIAL TRENDS, OPERATIONAL TRENDS, REVENUE CAPACITY, AND ECONOMIC INFORMATION. FOR THE PAST 10 YEARS, EVERY YEAR, THERE IS AN INDEPENDENT, INDEPENDENT AUDIT THAT IS CONDUCTED, WHICH ENSURES FINANCIAL REPORTING IS COMPLIANT WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES THAT HAS BEEN ESTABLISHED BY THE GOVERNMENTAL ACCOUNTING STANDARDS BOARD. AND WHEN THE AUDIT IS COMPLETED, AUDITORS PROVIDE A OPINION ON THE FINANCIAL STATEMENTS TO, TO SPECIFY [01:05:01] JUSTIFY THE, THE QUALITY OF THE FINANCIAL. THERE ARE FOUR VARIOUS AUDIT OPINIONS. FIRST ONE BEING AN UNQUALIFIED OPINION, WHICH IS ALSO KNOWN AS A CLEAN OPINION, WHICH REFLECTS THE FINANCIAL STATE ARE PRESENTED FAIRLY AND IN ACCORDANCE WITH GAP COMPLIANCE. SECOND, SECOND OPINION WOULD BE A QUALIFIED OPINION, WHICH STATES THAT THE FINANCIAL STATEMENTS ARE PRESENTED, UM, FAIRLY IN THE, I'M SORRY, APOLOGIES, OUR SLIGHT DEPARTURE FROM GAP WITH SOME, SOME MAJOR, UH, MINOR MATERIAL MISSTATEMENTS. AND YOU HAVE AN ADVERSE OPINION, WHICH REFLECTS THAT FINANCIAL STATEMENTS ARE NOT PRESENTED FAIRLY AND NOT IN COMPLIANT WITH GAP. AND THERE WAS A FOURTH AND ONE FOURTH ONE CALLED A DISCLAIMER OF OPINION, WHICH PRETTY MUCH MEANS THAT THE AUDITORS CANNOT MAKE A BASIS ONE WAY OR ANOTHER. BASED ON THE INFORMATION PRESENTED, I WILL BE HAPPY TO REPORT THAT THE LONG BEACH UTILITIES DEPARTMENT DID RECEIVE A CLEAN AUDIT. AND SO WE DO MEET ALL THE GUIDELINES AND REGULATIONS THAT HAVE BEEN BEFORE US. SO WHY IS THE FER IMPORTANT? SO THE FER ACTS AS THE FINANCIAL REPORT CARD TO THE LONG BEACH UTILITIES DEPARTMENT'S, FUND GROUPS, AND IT GIVES US INSIGHT TO HOW WE PERFORM FOR THE YEAR. PROVIDES YEAR OVER YEAR DATA, GIVES VARIOUS STATISTICAL INFORMATION, AND IT INCLUDES AUDITORS REPORTS THAT ALSO SOLIDIFY THE FINANCIAL REPORTING. ALSO, THE ACT FOR PROVIDES FINANCIAL OR FISCAL TRANSPARENCY FOR THE RATE PAYERS, KEEPING RATE PAYERS INFORMED OF HOW THEIR DOLLAR IS UTILIZED. REFORM REINFORCES PUBLIC TRUST AND IT IS ESSENTIAL FOR MAINTAINING ACCOUNTABILITY. ALSO, THE SOURCE, IT'S A SOURCE DOCUMENTATION FOR CREDIT RATING AGENCIES AND BOND HOLDERS. IN THE EVENT, IF THE DEPARTMENT WAS TO LEVERAGE DEBT INSTRUMENTS SUCH AS BONDS OR LINE OF CREDIT, UM, THE RATING AGENCIES RELY ON THE ACTOR AS A SOURCE OF INFORMATION TO SUPPORT OUR CREDIT WORTHINESS. ALSO, FINANCIAL REPORTING EXCELLENCE. SO THE CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING AWARD PROGRAM WAS ESTABLISHED BY GFOA, WHICH IS THE GOVERNMENT FINANCE OFFICE ASSOCIATION BACK IN 1945. UM, IT REFLECTS THE HIGHEST FORM OF RECOGNITION IN GOVERNMENTAL ACCOUNTING AND FINANCIAL REPORTING. AS YOU CAN SEE, THE LONG BEACH UTILITIES DEPARTMENT HAS HAVE A VALUE TRADITION OF RECEIVING THIS AWARD CONSECUTIVELY OVER THE PAST THREE, FIVE YEARS. IT IS THE CONTINUED, I WOULD SAY, APPROACH OR STRIVE. THE DEPARTMENT CONTINUES TO STRIVE FOR THE CONTINUED EXCELLENCE, ACCOUNTABILITY, COMPLIANCE, AND TRANSPARENCY. AND 2025 IS NO DIFFERENT. UH, WE WENT AHEAD AND SUBMITTED OUR FINANCIAL REPORT AS WELL TO GFO A THIS YEAR TO RECEIVE THIS AWARD AGAIN, SO WE CAN KEEP THAT HONOR TRADITION OF EXCELLENCE. AND WITH THAT, THE RECOMMENDATION IS TO RECEIVE AND FILE THE ANNUAL COMPREHENSIVE REPORT, UH, FOR THE PERIOD ENDED SEPTEMBER 30TH, 2025. AND THAT CONCLUDES MY PRESENTATION. I HAVE TAKE ANY QUESTIONS YOU MAY HAVE. THANK YOU. MATTHEW, ARE THERE ANY PUBLIC COMMENTS? ARE THERE ANY COMMISSIONER COMMENTS ON THE MOTION? UH, THANK YOU, MATTHEW. I JUST WANNA SAY TO, UM, ALL OF YOU THAT WORKED ON THIS, THAT, UM, HAVING GONE THROUGH SEVERAL MONTHS AT METROPOLITAN ON OUR BUDGET AND FINANCE, THAT I KNOW ALL TOO WELL WHAT WENT INTO THIS. SO WE, YOU KNOW, WE, I THINK I SPEAK FOR EVERYBODY WHEN WE SAY WE GREATLY APPRECIATE THE EXTENSIVE WORK THAT WAS DONE, UH, ON THIS. AND I, I, YOU'VE SAID IT CORRECTLY THAT THIS BUILDS PUBLIC TRUST AND FISCAL TRANSPARENCY, WHICH IS OBVIOUSLY WHY WE HOPEFULLY ARE ALL HERE. SO, FOR STEPHANIE, DANIEL, MATTHEW, AND DAN, YOU CAN SLEEP A LITTLE BETTER TONIGHT. THANK YOU. THANK YOU. YES, SIR. I ALSO JUST WANNA SAY THANK YOU. I, I'VE READ IT AND, UM, IT'S A TON OF WORK, SO I APPRECIATE IT. GREAT JOB. UM, I DO WANNA POINT OUT THAT I, LIKE I LEARNED, UH, THE NET POSITION ON ALL THREE HAVE INCREASED, AND THE ONE BY 500% WAS PRETTY IMPRESSIVE. BUT I MEAN, THAT'S THE GAS FUND AND, AND, YOU KNOW, THERE'S CHALLENGES THERE, BUT GREAT, GREAT JOB YEAR OVER YEAR, AND THERE'S A LOT IN THE STATISTICAL SECTION. THERE'S A LOT OF GREAT INFORMATION OVER A 10 YEAR TRENDS THAT I THINK IS REALLY VALUABLE FOR US LOOKING FORWARD ON USAGE AND, AND ALL THOSE GOOD THINGS. SO AGAIN, THANK YOU VERY MUCH. ANY OTHER COMMISSIONER COMMENTS? UH, I'LL JUST JUMP ON THAT AS WELL. THE, WE'RE, WE'RE IN BUDGET SEASON DEEP INTO BUDGET SEASON, MOVING INTO IT. UM, AND BUDGET IS HOPES, THE DREAMS, THE WISHES, CONSTRAINTS, UH, OF AN ENTERPRISE. UM, BUT THE ACT FOR IS, IT'S, IT'S, IT'S A HISTORY BOOK, AND IT, IT SHOWS US NOT WHAT WE WANT IT TO BE, BUT WHAT WE HAD BECOME. AND SO IT'S HUGELY IMPORTANT DOCUMENT, UH, NOT JUST FOR THE PUBLIC, NOT FOR FOR THE DECISION MAKERS OF THE ORGANIZATION, BUT, UM, FOR THOSE FOLKS, UH, ON THE OUTSIDE, UH, BOND AGENCIES AND, AND, UH, OTHERS, UH, THAT, THAT HAVE A, UH, AN INTEREST [01:10:01] IN WHAT WE ARE UP TO. UM, SO CONGRATULATIONS TO STEPHANIE AND YOUR TEAM. UM, WELL DONE. AND, UH, LOOKING FORWARD TO SEEING ANOTHER ONE OF THOSE AWARDS. THANK YOU. SO ON THE MOTION, ALL THOSE IN FAVOR, PLEASE SAY AYE. AYE. THANK YOU. UH, ANY OPPOSED? NONE. UH, MOVING ON, UH, AGENDA, AGENDA ITEM NUMBER EIGHT. UH, RECEIVE [8. 26-54867 Recommendation to receive and file the Long Beach Public Utilities Department’s Fiscal Year 2026 Second Quarter Financial Review.       Suggested Action: Approve recommendation. ] AND FILE LONG BEACH PUBLIC UTILITY DEPARTMENTS FISCAL YEAR 2026, SECOND QUARTER FINANCIAL REVIEW. UH, MAY I PLEASE HAVE A MOTION TO HEAR THE PRESENT? SO MOVED. SECOND. SECOND. THANK YOU. DANIEL GUTIERREZ. YES, GOOD MORNING COMMISSIONERS. UH, SO TODAY WE'RE GONNA BE REVIEWING THE, UH, Q2 FINANCIAL REVIEW FOR FY 26. SO A COUPLE OF KEY TAKEAWAYS IN THESE PRESENTATIONS, UH, THAT I WANTED TO, TO HIGHLIGHT. UH, FIRST IS GONNA BE THE REVENUE PROJECTION. SO, UH, FOR THE WATER AND FOR THE SEWER FUND, UH, WE ARE EXPECTED TO COME IN EQUAL TO BUDGET, UH, RELATIVELY CLOSE TO EQUAL TO BUDGET FOR, UH, WATER AND SEWER. AND THEN FOR GUESTS, WE'RE EXPERIENCING A REDUCTION IN CONSUMPTION. WE'LL GO AHEAD AND, UH, GET INTO THAT. UH, THE NEXT KEY TAKEAWAY IS GONNA BE THE CIP AND THE DEBT IMPACT. SO, UH, FOR THE WATER AND SEWER, UH, WE ARE DEFERRING PROJECTS TO FY 27. AND WITH THAT, WE ARE DEFERRING SOME OF THE DEBT PROCEEDS AND SOME OF THE REIMBURSEMENTS FOR THOSE CONSTRUCTION PROJECTS, AS WELL AS WE'RE EXPERIENCING, UH, LOWER THAN EXPECTED DEBT SERVICE COSTS WITH THE NEED TO BORROW LESS MONEY. AND THEN ON THE GAS SIDE, WE'RE ACTUALLY SEEING AN INCREASE IN THE CIP, UH, AND THEN INCREASING THE, UH, THE REIMBURSEMENTS AS WELL. SO STARTING OFF WITH THE WATER FUND, UM, GOING BACK TO FY 25, UH, THE BOARD ORIGINALLY ADOPTED A $10 MILLION SURPLUS, UH, FOR THE YEAR. AND WE ACTUALLY FINISHED HIGHER EVEN THAN THE LAST ESTIMATES THAT WE PROVIDED, UH, WITH A TOTAL OF $20 MILLION, UH, AN ADDITIONAL FUND BALANCE GAIN FOR THE FY 26 BUDGET OF EVERYTHING HAD COME IN EQUAL TO, UH, BUDGET FOR REVENUES AND EXPENDITURES. UH, WE WOULD'VE FINISHED THE YEAR AT 6.2 MILLION. UH, BUT WE ARE SEEING ADDITIONAL SAVINGS AND ARE PROJECTED TO GAIN FUND BALANCE OF JUST OVER, UH, $15 MILLION, STARTING OFF WITH THE WATER SALES FOR BOTH POTABLE AND RECLAIM. UH, AS YOU CAN SEE IN THE FY 25 BUDGET AND THE YEAR END, WE CAME, UH, VERY CLOSE, UH, TO THE ORIGINAL BUDGET, AND THEN WE'RE EXPERIENCING A SLIGHT, UH, REDUCTION IN CONSUMPTION. BUT, UH, IT'S PRETTY VERY, IT'S VERY CLOSE STILL TO THE ORIGINAL, UH, BUDGETED ESTIMATE, ESTIMATED AMOUNT. UH, THE NEXT BIG KEY TAKEAWAY HERE IS THE DEFERRAL AND CIP PROJECTS AND THE ASSOCIATED DEBT PROCEEDS. SO, AS I MENTIONED PREVIOUSLY, UH, WE ORIGINALLY ANTICIPATED TO BORROW 21 MILLION, AND IT LOOKS LIKE WE'RE ONLY GONNA NEED ABOUT 15 AND A HALF MILLION. FOR THE REIMBURSABLE CIP WE HAD BUDGETED 10 AND HALF, AND WE ARE ESTIMATED TO FINISH THE YEAR WAS 6.8 MILLION. SO THE KEY TAKEAWAY HERE, AND THE REDUCTION IN REVENUE IS NOT COMING FROM SALES. IT'S ACTUALLY COMING FROM THE DEFERRAL OF DEBT PROCEEDS. ON THE EXPENSE SIDE, UH, WE ARE SEEING, UH, SALARY SAVINGS, UH, WHICH IS, UM, WHERE WE ANTICIPATED TO BE BASED ON OUR CURRENCY VACANCIES. UH, FOR THE CIP, UH, WE ARE SEEING A REDUCTION FROM THE ORIGINAL AMOUNT. SO ORIGINALLY WE HAD BUDGETED THE 56.6 MILLION AND, UH, WE'RE ESTIMATED TO CLOSE THE YEAR AT 47 MILLION. AND THIS IS MAINLY ATTRIBUTED TO THE AIRPORT PIPELINE PROJECT AND THE ARBOR AND LOCUS WATER MAIN IMPROVEMENTS ON THE O AND M. WE CAME IN LOWER THAN BUDGET, MAINLY DUE TO VEHICLE PURCHASES BEING DEFERRED AND A REDUCTION IN THE SERVICES AND MATERIAL SPENDING CATEGORIES FOR PUMP AND PURCHASE. WE DID HAVE THAT SLIGHT REDUCTION. HOWEVER, WE ARE SEEING, UM, AND THIS IS THE GOOD NEWS, IS THAT WE ARE SEEING A REDUCTION IN OUR PURCHASE WATER COSTS, WHICH IS OUR MORE EXPENSIVE WATER. AND THEN WE SAW A SLIGHT INCREASE IN OUR PUMP WATER, SO CHANGING THE MAKEUP OF OUR WATER SUPPLY. AND THEN WITH THE DEBT SERVICE, UH, AGAIN, WE ARE ANTICIPATING TO NEED TO BORROW LESS MONEY. SO WITH THAT COMES LESS INTEREST EXPENSE. AND THEN WE HAVE THE GENERAL FUND TRANSFER, WHICH IS PROJECTED TO STILL COME IN, UH, ADD BUDGET. NOW, WHAT DOES THAT MEAN IN TERMS OF FUND BALANCE? SO WE FINISHED THE FY 25 YEAR WITH THE $23.8 MILLION IN FUND BALANCE, AND IF EVERYTHING WOULD'VE COME IN EQUAL TO BUDGET, UH, WE WOULD'VE FINISHED AT THE $30 MILLION. UH, BUT BECAUSE WE SAW A REDUCTION OF 22 MILLION IN THE EXPENDITURE CATEGORY AND A REDUCTION OF 13 MILLION IN REVENUES, WE ACTUALLY FINISHED THE YEAR AT 39.2 MILLION. SO AN ADDITIONAL $9 MILLION IN FUND BALANCE. UH, SO [01:15:01] THE MAIN STORY, AND THE MAIN TAKEAWAY HERE IS THAT WITH THE DEFERRAL OF CIP PROJECTS, UH, WE ARE SEEING THAT MONEY, UH, PARKED IN THE FUND BALANCE, UH, FOR THE FY 26 ESTIMATE. ARE THERE ANY QUESTIONS REGARDING, UH, WATER BEFORE I MOVE ON TO THE GAS FUND CLERK? MR. CHARLES? THANK YOU. UH, UM, GREAT PRESENTATION. JUST HAD A QUICK, QUICK QUESTION. UM, GOING BACK TO THE OTHER SLIDE REGARDING I THINK THAT ONE SALARY AND WAGE WAGES, UH, WHAT ARE THE ACTUAL VACANCIES IN, IN TERMS OF POSITIONS THAT ARE HELPING OR I GUESS CREATING A A A LESS THAN PROJECTED, UM, WAGE AND BENEFIT NUMBER? AND THEN, UM, REGARDING THE CIP, UM, IS THAT BECAUSE THE, THE PROJECTS ARE UNDER COST? NO, THIS IS A DEFERRAL OF PROJECTS FOR THE CAP. AND THEN GOING BACK TO YOUR FIRST QUESTION, UH, YES, THE TYPICALLY OUR VACANCIES, UH, RATE IS BETWEEN 15 TO 20%. UH, SO, UH, THAT IS WHERE WE ARE, I BELIEVE, WITH THE WATER FUND. OKAY. SO THE BUDGET, UM, THE BUDGETED POSITIONS OR THE, THE FY 26 BUDGET WAS BASED ON 100% BUILD? NO, THERE, WELL, THERE IS A SALARY ADJUSTMENT PLUG IN THERE TOO, SO IT IS SORT OF AN R TO ANTICIPATE WHAT THE VACANCIES WOULD BE. BUT YES, THIS IS, UH, THIS WOULD BE THE FULLY, UH, BUDGETED POSITIONS THAT WE CURRENTLY HAVE WITH THE SLIGHT SALARY SAVINGS. BUT, UH, YEAH. GOT IT. THANK YOU SO MUCH. SECRETARY HARKIN, COULD, COULD YOU JUST TALK ABOUT THE DEFERRALS? I MEAN, WHY ARE WE DEFERRING THE PROJECTS IF THEY WERE PART OF THE BUDGET? AND I'M NOT SURE, MAYBE SOMEBODY FROM CONSTRUCTION OR CIP CAN TALK ABOUT WHY AND WHAT'S GETTING DEFERRED AS WE APPROVE THE BUDGET. I MEAN, THEY GIVE A CAPITAL IMPROVEMENT PRESENTATION. ALL THE PROJECTS SEEM VERY NECESSARY AND TIMELY, AND THEN NOW WE COME THROUGH THE BUDGET AND THEY GET, SOMEBODY COULD ADDRESS THAT, THAT, YES, THAT'S A GOOD QUESTION. I, THOMAS IS GONNA COME UP TO THE PODIUM FOR THAT ONE. THANK YOU FOR THE, UH, THE QUESTION. COMMISSIONER PARKINSON. SO THERE WERE A COUPLE OF THINGS THAT RESULTED IN SOME PROJECTS GETTING DELAYED MATERIAL DELIVERIES. ONE OF THEM, SOME OF OUR ROLES WERE KIND OF DELAYED FOR THE NEXT PROJECT. THE OTHER, THE OTHER COMPONENT THAT PLAYED A KEY ROLE AS I WAS TALKING TO STAFF WAS BACK IN EARLY 2025 TIME PERIOD, THE BIG SPEED KNOWS LEAK AFFECTED QUITE A FEW OF OUR PROJECTS. A FEW OF OUR PROJECTS WERE DELAYED FOR NEXT YEAR, NOT KNOWING WHAT THE FULL IMPACT OF WHAT WE NEED TO REPAIR AT THAT TIME. SO THOSE ARE THE KEY COMPONENTS. UH, AND TYPICALLY WE TRY TO MEET THE BUDGET. UH, HOWEVER, FOR SOME, UH, REASON AT TIMES WE TRY TO COME IN SLIGHTLY UNDER BECAUSE WE DON'T WANT TO BE OVER BUDGET, RIGHT? SO THERE ARE SOME PRECAUTIONARY MEASURES THAT ULTIMATELY RESULTED IN US, UH, NOT MEETING THE FULL BUDGETED AMOUNT. IF I COULD JUST FOLLOW UP ON THAT. SO, SO I UNDERSTAND THAT THE PROJECTS THAT ARE DEFERRED ARE NOW BEING PLACED IN THE UPCOMING BUDGET, CORRECT. SO IT'LL BE RE-IDENTIFIED OR AS A NEW PROJECT OR ANOTHER PROJECT THAT HADN'T BEEN DONE OR NEEDS TO BE DONE, I GUESS IS THE BETTER WAY TO PUT IT. SO THE WAY THAT THE CASHFLOW WORKS IS THOSE PROJECTS WILL CONTINUE MOVING TO THE NEXT FISCAL YEAR, BUT THERE WILL BE OTHER PROJECTS THAT WILL START AS BRAND NEW. SO THAT'S WHY YOU'LL SEE FROM THE NEXT FISCAL YEAR, IT'S 57 MILLION. I'M SORRY, IT'S 56 MILLION BECAUSE SOME OF THE PROJECTS FROM THE PRIOR YEAR CARRIED ALONG TO THE NEXT ONE. IF WE WERE TO COMPLETE THOSE PROJECTS THAT WERE ORIGINALLY BUDGETED, YOU WOULDN'T SEE THE 56 56 NUMBER. YOU WOULD SEE SOMETHING A LOT LESS THAN THAT. OKAY. THANK YOU COM. COMMISSIONER PARKIN, THAT'S AN, AN ELEMENT OF CIP PLANNING IS THAT FOR ANY NUMBER OF REASONS THAT CAN COME FORWARD, THERE'S GONNA BE A TIMING ISSUE WITH PROJECTS. AND SO THEN THE QUESTION IS THEN THE ORGANIZATIONAL CAPACITY TO UNDERTAKE A SHIFT AND AN AUGMENTATION OF THE NEXT YEAR'S BUDGETED CIP OR A REAPPORTIONMENT OF THE EFFORTS AND SLIGHT SHIFTS IN THOSE PROJECTS THAT WERE PLANNED FOR THE UPCOMING BUDGET. AND ALL OF THAT WILL GET PRESENTED TO YOU AS WE WALK THROUGH THE INFORMATION SESSIONS ON THE BUDGET FOR FISCAL YEAR 27. ANY OTHER COMMENTS BEFORE WE MOVE ON? OKAY. OKAY. SWITCHING OVER TO GUESS. SO LAST YEAR, THE BUDGET ADOPTED A DEFICIT OF SEVEN AND A HALF MILLION DOLLARS. UM, AND THEN WE FINISHED THE YEAR AT 8.3 MILLION. UH, ONE OF THE KEY TAKEAWAYS HERE, UH, IS THAT WE NOR WE ARE NO LONGER, UH, SHOWING THE AB 32 SINCE IT IS EARMARKED, [01:20:01] UH, FOR CONSERVATION PROJECTS. SO THESE NUMBERS HERE NOW ARE REFLECTING THAT CHANGE. UH, FOR THE FY 26 BUDGET, UH, THAT WAS ADOPTED LAST YEAR, WE HAD A PROJECTED SURPLUS OF $1.6 MILLION. UH, BUT CURRENTLY WE'RE SHOWING A DEFICIT OR A LOSS OF 1.5 MILLION, ESSENTIALLY A $3.1 MILLION CHANGE IN OUR FUND BALANCE. SO I'LL GO AHEAD AND GET STARTED ON THAT. STARTING OFF WITH THE GAS TRANSMISSION REVENUE, THIS IS THE KEY TAKEAWAY. UH, WHEN IT COMES TO THE GAS FUND BALANCE CHANGES, UH, WE EXPERIENCE LOWER THAN EXPECTED CONSUMPTION, UH, PRIMARILY DRIVEN BY WARMER WINTERS, UH, REDU RESULTING IN REDUCED DEMAND ACROSS ALL OUR CUSTOMER CLASSES. GAS COMMODITY REVENUE IS A REDUCTION, HOWEVER, IT IS OFFSET BY CORRESPONDING DECREASES ON THE EXPENSE SIDE. SO I'LL POINT THAT OUT. ON THE EXPENSE SIDE, THE GAS SERVICE FEES AND THE PREPAY, WE SAW AN IMPROVEMENT, UM, MAINLY RELATED TO THE EFFORTS IN OUR COLLECTIONS OF PAST DUE ACCOUNTS. THE REIMBURSABLE CIP UH, SO FOR THIS ON THE GAS SIDE, UH, WE ARE SEEING AN INCREASE IN THE REIMBURSABLE CIP AND THIS IS MAINLY ATTRIBUTED TO THE, UH, PEER B RAIL PROJECT. UH, SO AS YOU SEE THE INCREASE IN THE REIMBURSABLE CIP, YOU'RE ALSO GOING TO SEE AN INCREASE IN THE CIP EXPENSE FOR THE GAS SIDE FOR MOUS, UH, AND DEBT PROCEEDS, UH, WE ARE, UH, PLANNING TO COME IN THAT BUDGET. AND THEN FOR MISCELLANEOUS REVENUE, UH, WE DID HAVE A REDUCTION IN SOME OF OUR LEASE REVENUE FOR SALARIES, WAGES, AND BENEFITS, UH, AGAIN, WE'RE SEEING SOME SALARY SAVINGS, UH, IN THIS CATEGORY AS WELL. THE GAS COMMODITY COSTS IS AGAIN, THE OFFSET THAT WE SHOWED ON THE REVENUE SIDE. THE GAS TRANSMISSION, UH, IS ALSO, UH, COMING IN CLOSE TO BUDGET. AND THEN FOR THE O AND M, UH, WE DID HAVE A, A REDUCTION THERE, UH, RELATED TO SOME OF THE SUBSCRIPTION COSTS TO OUR NEW BILLING SYSTEM. AGAIN, THE KEY TAKEAWAY ON THE GAS SIDE IS GONNA BE THE CIP I'M SORRY. UH, THIS IS THE, THE KEY JUMP HERE THAT WE'RE SEEING AS RELATED TO THE PEER B RAIL PROJECT. NOW, WHAT DOES THAT MEAN IN TERMS OF, UH, FUND BALANCE? SO WE FINISHED THE YEAR AT $2.1 MILLION IN FUND BALANCE. NOW, IF EVERYTHING WENT AS PLANNED AND BUDGET AND REVENUES CAME IN EQUAL TO BUDGET, WE WOULD'VE FINISHED THE YEAR AT 3.7 MILLION. HOWEVER, UH, SINCE WE DID SEE THE INCREASE IN EXPENDITURES BY 1.3 MILLION AND A REDUCTION IN REVENUE OF 1.8 MILLION, UH, WE NOW HAVE AN ESTIMATED FUND BALANCE OF 0.6 MILLION OR, UH, $600,000. UH, SO WITH THAT, I'LL GO AHEAD AND PAUSE HERE, UH, AND ADDRESS ANY QUESTIONS, UH, THAT THE BOARD MAY HAVE, THAT SLIDE'S VERY TELLING. UM, ON THE MINIMUM OF THE 26 MILLION, CAN YOU TALK ABOUT OUR PLAN TO RAISE OUR FUND BALANCE AND MAYBE AT A DIFFERENT TIME, TELL ME HOW YOU CAME UP WITH 26 AND 39 AS THE MAX. OH, YEAH. SO THE 26, THE MIN AND MAX ARE DETERMINED BY THE FINANCIAL RESERVE POLICY. SO 90 DAYS, UH, OPERATING CASH. UH, IN TERMS OF THE PLAN, UM, UH, WE ARE CURRENTLY WORKING ON THE FY 27 BUDGET DEVELOPMENT. AND WITH THAT, WE'LL BE PRESENTING A FIVE-YEAR PLAN, UH, TO SHOW YOU WHAT OUR PLAN IS, UH, TO ATTEMPT TO REACH THE MINIMUM PARKIN, THAT YOU ALSO HAVE THE LONG RANGE FINANCE PLAN, WHICH IS A 10 YEAR MODEL. AND THE 10 YEAR MODEL ALSO PLAYS OUT OVER THE LONG TERM, UH, THESE INTERACTIONS ON FUND BALANCE AND THE RELATIONSHIP TO THOSE RESERVE TARGETS SET BY THE FINANCIAL RESERVE POLICY OF THE BOARD. I APPRECIATE THAT, BUT I THINK 10 YEARS IS TOO LONG TO GET TO THE MINIMUM, YOU KNOW, SO I'D LIKE MAYBE FIVE YEARS. WELL, YEAH, I WASN'T IMPLYING THAT YOU'D GET TO IT IN 10 YEARS. I WAS IMPLYING THAT IN TERMS OF MANAGEMENT OF THE RESERVES OVER TIME, THERE'S ALSO THE FIVE YEAR DURING THE BUDGET PRESENTATIONS, BUT THEN THERE'S ALSO THE MODEL THAT HAVE, WHICH IDENTIFIES THESE FLUCTUATIONS THAT COULD OCCUR WITH MAJOR ITEMS OVER THE COURSE OF 10 YEARS. AND I JUST AM EMPHASIZING THE IMPORTANCE OF BEING, HAVING A RESERVE FUND, CORRECT. ALL OF THE RIGHT REASONS AND ALL OF THE NECESSARY REASONS WE NEED ONE. AND BEING AT LESS THAN A MILLION DOLLARS ISN'T MAKE ME FEEL GOOD. UNDERSTOOD. YES, SIR. OKAY. SWITCHING OVER TO THE, OH, SORRY. JUST WANTED SOME CLARIFICATION ON, UM, UM, THE MOUS. UM, CAN YOU, CAN YOU ELABORATE ON THE MOUS ARE THE CITY CHARGES, UH, THAT ARE CHARGED TO OUR DEPARTMENT FOR SOME OF THE SERVICES THAT WE, OR THAT THEY, THAT THEY PROVIDE, UH, FOR US? OKAY. SO RELATED TO THE FUND TRANSFERS? NO, THE GENERAL FUND TRANSFER IS IDENTIFIED SEPARATELY, AND THAT'S IDENTIFIED IN THE, UM, CAN YOU GO TO THE TABLE? SO THERE [01:25:01] IN THE LISTING, THE MOUS IS THE ACTUAL SERVICES CHARGED BY VARIOUS CITY DEPARTMENTS FOR THOSE THINGS THAT ARE HELD IN COMMON ACROSS THE ENTIRE CITY. TID TECHNOLOGY AND INNOVATION DEPARTMENT HAS A NUMBER OF THOSE. FINANCIAL MANAGEMENT DOES CITY ATTORNEY'S OFFICE, ALL OF THESE REPRESENT THE MOUS. THE GENERAL FUND TRANSFER HAS DICTATED BY THE CHARTER ITSELF. THAT IS A SEPARATE LINE ITEM. GO AHEAD. OKAY, THANKS. SWITCHING OVER TO, UH, THE SEWER FUND. SO A DIFFERENT STORY HERE. UH, SO GOING BACK TO FY 25, WE ORIGINALLY BUDGETED THE SIX AND A HALF MILLION DOLLAR DEFICIT. UH, AND THEN WE ACTUALLY FINISHED, UH, WITH LESS THAN JUST A MILLION DOLLARS IN LOSS IN FUND BALANCE. SO, UH, A FUND BALANCE GAIN THERE. AND THEN FOR FY 26, UH, WE HAD A DEFICIT BUDGETED FOR 1.9 MILLION, AND WE'RE COMING VERY CLOSE TO THE ORIGINAL ESTIMATE. HOWEVER, THERE ARE SHIFTS IN BOTH THE REVENUE AND THE EXPENSES. SO STARTING OFF WITH THE, UH, REVENUE, AGAIN, WE'RE SEEING, UH, SOLID PROJECTIONS FOR THE VOLUMETRIC AND DAILY SERVICE CHARGE, AS WELL AS FOR THE SEWER CAPACITY CHARGE HERE. SO ACTUALLY A SLIGHT INCREASE THAN WE ORIGINALLY ESTIMATED. IN TERMS OF THE LINE OF CREDIT, AGAIN, THIS IS RELATED TO THE DEFERRED CIP PROJECTS ASSOCIATED AND THE ASSOCIATED DEBT, OH, SORRY. AND THE, UH, REIMBURSABLE CONSTRUCTION AS WELL. SO REDUCTIONS IN THE DEBT PROCEEDS AND THE REDUCTION IN THE REIMBURSABLE CIP. SO AGAIN, NOT DRIVEN BY SALES, UH, FOR SALARIES, UH, WE'RE SEEING AGAIN, UH, SOME VACANCY SAVINGS HERE IN THIS CATEGORY. UH, FOR O AND M, WE'RE COMING VERY CLOSE TO THE ORIGINAL BUDGET. THE MAIN SHIFT HERE IS GONNA COME FROM THE DEFERRED CIP PROJECTS. SO FOR THAT ONE, WE HAVE THE, UM, WE HAVE THE S-S-R-R-P PROJECT 11 AND THE S SEVEN SEWER LIFT STATION, AS WELL AS, UH, DELAY IN THE HANES, UH, RECYCLED MAIN PROJECT. AND THEN WE HAVE THE DEBT SERVICE COST AND THE, SORRY, THE GENERAL FUND TRANSFER COMING IN, UH, EQUAL TO BUDGET. SO WHAT DOES THIS MEAN IN TERMS OF FUND BALANCE? WELL, WE FINISHED A YEAR AT EIGHT AND A HALF MILLION, UM, WHICH IS RIGHT IN THE MIDDLE WAS THE MIDDLE OF OUR MINIMUM AND MAXIMUM, UH, WE HAD ESTIMATED THAT WE WOULD FINISH THE YEAR AT ABOUT SIX AND A HALF MILLION. AND IT LOOKS LIKE WE'RE GONNA HIT THAT TARGET OF ABOUT SIX AND A HALF MILLION. AGAIN, THIS IS BECAUSE WE'RE SEEING A REDUCTION OF ABOUT SIX AND A HALF MILLION IN BOTH REVENUES AND EXPENSES, SO OFFSETTING, AND WE'RE ANTICIPATING TO, TO STAY WITHIN THE MINIMUM AND MAXIMUM TARGET FOR THE SEWER FUND. WITH THAT, ARE THERE ANY QUESTIONS RELATED TO THE SEWER FUND OR ANY OTHER, UH, ASPECTS OF THE PRESENTATION? NO, LOOK LIKE, UH, SO, UH, NEXT STEPS ARE WE HAVE THE FIRST BUDGET PLANNING SESSION, UH, FOR MAY 14TH. UH, WE'LL BE BRINGING A, THE CURRENT BUDGET AND PROJECTIONS AND SOME RATE OPTIONS. AND THEN FOR, UH, MAY 28TH, WE'LL BE DOING THE SAME, UH, CONTINUING TO REVIEW THAT. AND THEN HOPEFULLY BY JUNE 4TH, WE WILL HAVE THE BUDGET ADOPTION OF OUR BUDGET ADOPTION AND OUR RATE ADOPTION ON JUNE 4TH. AND THAT CONCLUDES THE PRESENTATION. THANK YOU. DANIEL, ARE THERE ANY PUBLIC COMMENTS? YES, SIR. SO, UH, FIRST OF ALL, APOLOGIES FOR MY APPEARANCE, BUT, UH, RIGHT NOW I'M SUPPORTING COACHELLA, A CITY OF ABOUT 135 PEOPLE FROM PROVIDING POWER FOR THE ENTIRE FESTIVAL. UM, MY QUESTIONS REGARDING TO THIS ARE, WHY DO YOU THINK THE GAS CONSUMPTION IS REDUCING? UM, SO WHAT I'M PUTTING OUT THERE IS, IS IT BECAUSE AS A CITY WE'RE LEANING TOWARDS MORE WHEN WE KNEW WHEN WE DO BRAND NEW RESIDENTIAL OR COMMERCIAL OR INDUSTRIAL PROJECTS, ARE WE LEANING MORE TO REQUIRING THEM TO USE ELECTRICITY INSTEAD OF GAS, UH, FOR COOKING AND HEATING? NEXT IS, DOES THE PUBLIC HAVE ACCESS TO THE AIRPORT PIPELINE PROJECT THAT WAS MENTIONED? AND LIKE, UM, CHARLIE AND MR. PARKIN POINTED OUT, UM, ANYTIME WE DEFER SOMETHING, UH, WHAT WE'RE DOING IS IT LOOKS GOOD TODAY, TOMORROW IT'S GONNA COST US MORE MONEY. AND THEN EVEN WHEN IT COMES TO SOURCES OF WATER, WHAT ARE OUR SOURCES OF GAS? UM, IS IT JUST LIMITED TO THE, UH, GAS COMPANY OR DO WE HAVE OUR OWN, UH, RESERVOIRS OR WELLS OF GAS WITHIN THE CITY LIMITS? UH, THIS IS THE SECOND EXAM. THIS IS THE SECOND PRESENTATION THAT HAS ACRONYMS. AND AS PUBLIC, UM, [01:30:01] WE MIGHT NOT BE FAMILIAR WITH WHAT ALL OF THE ACRONYMS ARE. SO IT WOULD BE REALLY NICE TO INCLUDE ALSO WHAT THE ACRONYM IS, LIKE MOUI HAVE NO CLUE. AND THEN SEWER. SO IS IT JUST THE LA COUNTY SANITATION DISTRICT? IS THAT WHO'S MAINTAINING OUR SEWER OR WHERE WE MAINTAIN OUR SEWER? AND THE REASON WHY IS BECAUSE IF WE GO OFF TEST TO THE SANITATION DISTRICT, THAT MEANS THAT WE HAVE TO PAY AND THE PUBLIC, AT LEAST, I WOULD LIKE TO KNOW HOW MANY TIMES WE DEVIATED FROM THE QUALITY OF THE WATER THAT WE'RE SENDING TO THE SANITATION DISTRICT. AND THAT'S ALL I HAVE. THANK YOU SO MUCH. THANK YOU. YES, MA'AM. OKAY, SO I WANTED TO ADD THAT I'M RUNNING FOR MAYOR OF LONG BEACH. AND SO, UM, EVEN THOUGH WE WANT TO FIX THE CITY, WATER IS AN ELEMENT AND IT'S JUST AS IMPORTANT AS THE FIRE, THE POLICE AND EVERYTHING ELSE. UM, ON ONE OF THE, ON THE SLIDES IT MENTIONED THE GENERAL FUND TRANSFER. SO I WANTED TO READ SOMETHING BECAUSE I'M LOOKING AT ALL OF US UP IN HERE, AND 60 YEARS FROM OUR LIVES, I FEEL LIKE WE ALL WILL STILL BE MINORS. IT SAYS THE TRANSFER OF SURPLUS REVENUE FROM THESE UTILITIES TO THE GENERAL FUND WAS RULED UNCONSTITUTIONAL BECAUSE THEY CONSTITUTE AN ILLEGAL TAX ON UTILITY USERS. SO, AND THE OTHER ONE IS THE PRACTICE OF TRANSFERRING SURPLUS UTILITY REVENUE TO THE GENERAL FUND HAS OCCURRED FOR OVER 60 YEARS TO SUPPORT ESSENTIAL SERVICES LIKE THE POLICE, THE FIRE, AND THE PARKS. NOW, IF THIS IS UNCONSTITUTIONAL, WE SHOULD HAVE WAY MORE THAN SIX AND A HALF MILLION DOLLARS. WE, IF, IF WE ARE LOOKING AT 2025, IT SHOULD REALLY BRING US TO 20.5 MAKING WHAT MR. PARK SAID ABOUT OUR RESERVES BEING WAY MORE THAN A MILLION IN RESERVES. SO IF IT'S UNCONSTITUTIONAL, WHY ARE WE DOING IT? IT'S, IT'S JUST AS IMPORTANT AS THE POLICE DEPARTMENT. YOU GUYS SHOULD HAVE WAY MORE MONEY IN RESERVES. YOU SHOULD HAVE WAY MORE MONEY IN YOUR REVENUES EVERY YEAR. THAT MONEY SHOULD NOT BE TRANSFERRED OVER. IT'S ILLEGAL, AND IT, IT NEEDS TO STOP THIS YEAR. IT, IT CANNOT GO FURTHER. THAT'S ALL I WANNA SAY. THANK YOU. ANY OTHER PUBLIC COMMENTS? UH, ARE THERE ANY COMMISSIONER COMMENTS ON THE MOTION? YES, SIR. SO JUST A, A, A COMMENT TO YOU ALL ON WHAT YOU SAW TODAY. IT IS INDEED WHAT WE DO AS STAFF TO YOU AS OUR BOARD TO GIVE YOU A SECOND QUARTER ESTIMATE. SO IT IS AN ESTIMATE OF WHERE WE THINK SEPTEMBER 30TH MAY WIND UP FINANCIALLY. AND YOU SAW, AND SO SOME NUMBERS HAVE REFLECTED IN IT COMMENTARIES THAT YOU BROUGHT FORTH IN YOUR QUESTIONS. THERE WAS DISCUSSIONS OF WHAT DOES IT MEAN WHEN THERE'S A DEFERRAL ON A PROJECT ON CIP AND IF THAT IS ONE OF THE LEADING INDICATORS OF A CHANGE IN THE BUDGET, WHAT ARE WE GOING TO DO ABOUT IT OR HOW ARE WE GOING TO ADDRESS IT? SO I JUST WANTED TO ASSURE YOU, UH, THAT IN LIKE FASHION, GIVEN THAT THIS IS AN ESTIMATE, THERE ARE STILL STILL MANY THINGS FOR US TO DO TO RESPOND, TO MAKE CHANGES. AND SO IT'S MY COMMITMENT TO YOU OBVIOUSLY, AND EVERYBODY HERE AS STAFF THAT SEEING WHAT THIS ESTIMATE CURRENTLY SHOWS, UH, WILL BE TRYING TO BRING FORWARD CHANGES OR ADJUSTMENTS. AND AS WE DO THAT IN A TRANSPARENT MANNER, WE'LL BE BRINGING THAT TO YOU OVER THE COURSE OF THE BUDGET PLANNING SESSIONS TO GIVE YOU AN ASSESSMENT OF WHERE WE'RE GOING TO GO AND HOW THAT TRANSLATES INTO THE FISCAL YEAR 27 BUDGET. THANK YOU, SIR. UH, ON THAT NOTE, UH, I ENCOURAGE, UH, EVERY MEMBER OF THE PUBLIC TO TRY TO EITHER TUNE IN, UH, ON THE AUDIO, AUDIO RECORDINGS OF THIS, UH, PROCEEDINGS, UH, DURING THE BUDGET PRESENTATIONS, OR PLEASE BE HERE IN PERSON. UH, IT'S THE ONE WAY TO REALLY BE EDUCATED ON THE FINANCES AND, AND WHAT THE RATES, UH, WILL NEED TO BE IN ORDER TO MOVE THIS ENTERPRISE BOARD. UH, SEEING NO OTHER COMMENTS OR QUESTION, UH, ON THE MOTION. ALL THOSE IN FAVOR, UH, TO RECEIVE AND FILE, SAY AYE. AYE. ANY OPPOSED? NONE. THANK YOU VERY MUCH. UH, ITEM NUMBER NINE, RECEIVE [9. 26-54868 Recommendation to receive and file April 2, 2026 Communications Committee Report.       Suggested Action: Approve recommendation. ] AND FILE THE APRIL 2ND, 2026 COMMUNICATIONS COMMITTEE REPORT. MAY PLEASE HAVE A MOTION TO RECEIVE AND FILE. I MOVE. SECOND. THANK YOU. [01:35:01] UH, CALL ON COMMISSIONER MCGUIRE FOR YOUR CHAIR. THANK YOU. UM, THE COMMUNICATIONS COMMITTEE MET ON APRIL 2ND, AND I JUST WANNA REPORT OUT, UH, JOY CONTRERAS, OUR DEPARTMENT'S PUBLIC AFFAIRS OFFICER PROVIDED THIS REPORT AND, UM, ON THE FOUNDATION FOR COMMUNITY OUTREACH AND ESPECIALLY RELATIVE TO OUR FISCAL YEAR 27 BUDGET. THE REPORT EMPHASIZED, UH, LONG BEACH UTILITIES DISTRICT'S RESPONSIBILITIES TO OUR CUSTOMERS, SAFE AND RELIABLE WATER, GAS, AND SEWER SERVICE TO OUR CUSTOMERS 24 7, PUBLIC SAFETY, PUBLIC HEALTH, AND PROTECTING OUR ENVIRONMENT. I ASKED FOR MORE INFORMATION ABOUT BUDGET AND RATES TO BE SHARED AS PART OF THE BUDGET PRESENTATIONS AND FOR INFORMATION ABOUT WHEN COMMUNITY MEETINGS WOULD BEGIN AND STAFF SHARED THAT COMMUNITY MEETINGS WERE, WERE SCHEDULED, WERE WERE BEING SCHEDULED AT THAT POINT, AND THAT THESE MEETINGS WOULD BE OFFERED TO ALL CITY COUNCIL MEMBERS AS WELL AS COMMUNITY GROUPS ACROSS THE CITY. AND I'M HAPPY TO REPORT THAT THE DEPARTMENT HAS COMPLETED ITS FIRST BUDGET COMMUNITY MEETING EARLIER THIS WEEK AT RAMONA PARK AND HAS FUTURE MEETINGS SCHEDULED IN COUNCIL DISTRICTS THREE AND FOUR. WE ALSO RECEIVED AND FILED A REPORT ON GOVERNMENT AFFAIRS ADVOCACY WORK FROM JANUARY TO MARCH OF THIS YEAR. SPECIFICALLY LONG BEACH UTILITIES ATTENDED THE CAPITAL ADVOCACY DAY IN SACRAMENTO WITH THE CALIFORNIA MUNICIPAL UTILITIES ASSOCIATION AND MET WITH OFFICES, UH, UH, SENATOR LENA AL ZALES AND ASSEMBLY MEMBER JOSH LOWENTHAL ABOUT PUBLIC POLICY PRIORITIES, INCLUDING BUDGET AND AFFORDABILITY, CUSTOMER FINANCIAL ASSISTANCE PROGRAMS, AND UTILITY ENERGY EFFICIENCY AND RESILIENCE AS WELL. UH, THEY ALSO, WE ALSO HEARD A REPORT ON THE CALIFORNIA AIR RESOURCES BOARD, CARB, ANOTHER ACRONYM RULEMAKING ON NEW CAP AND INVEST REGULATIONS. THIS STATE REGULATION WILL GOVERN PUBLIC UTIL LONG BEACH PUBLIC UTILITIES COMPLIANCE WITH CAP AND INVEST REGULATIONS, AND HAVE FINANCIAL IMPACTS, INCLUDING THE WAY IN WHICH FREE ALLOWANCES MAY BE USED TO FUND THE AB 32 PROGRAM IN LONG BEACH WORK. AND THE FINAL, UH, REPORT WE HEARD THERE WAS A WORKFORCE DEVELOPMENT IN COORDINATION WITH LONG BEACH CITY COLLEGE AND THE RAND CORPORATION AND THE WATER REPLENISHMENT DISTRICT. A GREAT PARTNERSHIP ALL AROUND. UM, LET'S SEE. I THINK THAT'S IT FOR THAT. THE NEXT TIME THE COMMUNICATIONS COMMITTEE WILL MEET IS JUNE 18TH, AND WE'RE LOOKING FORWARD TO HEARING HOW THOSE COMMUNITY MEETINGS ARE GOING. THANK YOU VERY MUCH. THANK YOU FOR YOUR REPORT. UH, CHAIR MCGUIRE, ARE THERE ANY PUBLIC COMMENTS? ARE THERE ANY COMMISSIONER COMMENTS? I'M SORRY. YES, I WASN'T SURE HOW TO, UM, PUBLICLY ADDRESS THE COMMISSION, BUT I IF, UM, IN, IN ADDRESSING YOU, I JUST WANNA SAY THANK YOU FOR HAVING ME HERE. UH, THANK YOU FOR THE PRINTOUTS THAT WE HAVE BECAUSE WITH ALL GOING TO A LOT OF MEETINGS, I HAVE TO PRINT THIS OUT. , I HAVE TO HAVE THIS READY. SO THANK YOU FOR THE PRESENTATIONS THAT WERE GIVEN. THEY WERE VERY, UM, DETAILED OUT. SO MY COMMENT IS JUST TO SAY THANK YOU ALL. THANK YOU. ANY OTHER PUBLIC COMMENTS? AND COMMISSIONER CU I JUST WANTED TO FOLLOW UP WITH, UM, COMMISSIONER, UM, COMMISSIONERS A REPORT ON OUR COMMUNICATIONS COMMITTEE MEETING AND WOULD REQUEST THAT WE KNOW IN ADVANCE WHEN THE MEETINGS ARE OUT IN THE COMMUNITY, SO THAT IF WE WOULD ATTEND, IT'D BE GREAT FOR SOME OF US TO BE THERE. THANK YOU. GOOD REPORT. THANK YOU. ANY OTHER COMMENTS? ALRIGHT, UH, ON THE MOTION TO RECEIVE AND FILE ALL THOSE IN FAVOR SAY AYE. AYE. AYE. ANY OPPOSED? NONE. THANK YOU VERY MUCH. THE PUBLIC COMMENT PERIOD IS NOW OPEN. IS [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.] THERE ANYONE WISHING TO SPEAK ON A NON AGENDA ITEM? SEEING NONE. PUBLIC COMMENT PERIOD IS NOW CLOSED. MOVING ON TO ANNOUNCEMENTS. [ANNOUNCEMENTS] UH, ARE THERE ANY ANNOUNCEMENTS? YES. UM, SO I WANTED TO TURN IT OVER TO STEPHANIE, WHO'S GONNA GIVE AN ANNOUNCEMENT ON AN IMPORTANT HIRE THAT WE'VE HAD. SO, STEPHANIE? YES, I'M VERY EXCITED ABOUT THIS ONE. UM, SHE'S BEEN WITH US FOR ABOUT A MONTH ALMOST. AND, UH, SHE'S BEEN KIND OF HIDING HERE IN A COUPLE OF BOARD MEETINGS, BUT I DIDN'T GET TO FORMALLY ANNOUNCED, UH, OUR [01:40:01] NEW DIRECTOR OF FINANCE, I, I DID IT AT OUR LAST FINANCE COMMITTEE MEETING. SO, UM, NOW THIS IS MY FORMAL OPPORTUNITY TO INTRODUCE GERALDINE ALEJO. SHE HAS, UH, COME FROM THE CITY SIDE FINANCIAL MANAGEMENT, AND SHE'S BEEN PLUG AND PLAY AND, UH, SUCH A WONDERFUL ADD TO OUR TEAM. UM, WHEN WE FIRST MERGED THE BACKGROUND WAS, UH, MY FORMER, MY PREDECESSOR BRANDON WALKER WAS MY ROLE RIGHT NOW, SENIOR DIRECTOR. AND I WAS DIRECTOR AND WE CALLED OURSELVES LIKE THE BRADY BUNCH WHERE WE CAME TOGETHER. BUT NOW ONE OF THE BENEFITS OF THE MERGER IS THAT AS, UH, THROUGH ATTRITION AND PEOPLE MOVING ON, WE'VE BEEN ABLE TO STREAMLINE OUR OPERATIONS IN SUCH AN EFFECTIVE WAY. AND SO GERALDINE WILL BE OVERSEEING, UM, BUDGET ACCOUNTING AND NOW PROCUREMENT. SO IT'S, IT'S, I'M SO EXCITED, UH, I'M GONNA HAVE HER COME UP AND INTRODUCE HERSELF. GOOD MORNING BOARD. UH, AS STEPHANIE SAID, I'M GERALDINE ALEJO AND I'M VERY EXCITED, UH, TO BE STARTING WITH THE UTILITIES DEPARTMENT. I HAVE BEEN WITH THE CITY FOR 17 YEARS, MOST OF WHICH HAS BEEN IN THE BUDGET OFFICE. AND DURING MY TIME I HAVE FALLEN IN LOVE WITH NOT JUST THE CITY AND ITS DIVERSITY AND HOW VIBRANT, BUT MOST IMPORTANTLY, IT'S FINANCES. AND WE ARE A LARGE CITY. AND WHAT MAKES US SUPER UNIQUE IS WE HAVE, UH, OUR OWN PORT, BUT AS WELL AS OUR OWN UTILITIES DEPARTMENT. SO I AM AGAIN, VERY EXCITED TO LEARN ALL THE COMPLEXITIES OF OUR OPERATIONS AND, UH, WORK WITH EACH AND EVERY ONE OF YOU AND ALONG WITH THE TEAM FOR ALL THE BUDGETARY ACCOUNTING AND PROCUREMENT NEEDS. THANK YOU SO MUCH. THANK YOU. WELCOME. ANY OTHER COMMENTS? YEAH, UM, JUST TWO OTHER BRIEF ONES. SO COMMISSIONER AUSTIN, WERE YOU GONNA SAY SOMETHING? NO. UH, SO JUST TO, UH, AS A MATTER OF NOTE, SO METROPOLITAN WATER DISTRICT, UH, WENT THROUGH ITS BUDGET PROCESS. UH, IT NORMALLY DOES THIS AS A MATTER OF COURSE, IT ADOPTS BUDGET IN APRIL TIMEFRAME. UH, IT'S BEEN AN EXTENSIVE BUDGET AND NEGOTIATIONS PROCESS THAT HAS LED THROUGH MULTIPLE PLANNING SESSIONS INVOLVING MEMBER AGENCIES. COMMISSIONER CORDERO, DIRECTOR CORDERO HAS BEEN INVOLVED IN A NUMBER OF, UM, MEETING POINTS AND DISCUSSION POINTS TO NEGOTIATE, UH, COMPROMISES THAT METROPOLITAN BOARD BUDGET NOW HAS COME FORWARD. THEY ADOPTED IT, IT RESULTS IN A NET 6.2% INCREASE IN THE WATER RATES. WE'LL BE INCORPORATING THAT AND ITS ASSOCIATED CHARGES AND FACTORED IN AS WE BEGIN THE BUDGET PLANNING SESSIONS IN FISCAL YEAR 27. UM, THE OTHER PIECE THAT I WANTED TO HIGHLIGHT FOR YOU IS THAT IN THE COMMUNITY PRESENTATIONS WE DID INDEED HAVE OUR, OUR FIRST ONE, UM, I WANTED TO ASK JOY TO JUST GIVE A BRIEF SUMMARY OF HOW IT WENT, UM, TO INFORM YOU, AS YOU MENTIONED IN THE, UH, COMMITTEE COMMUNICATIONS COMMITTEE, WE WERE TALKING ABOUT THIS ELEMENT. AND SO HERE WAS OUR FIRST OPPORTUNITY TO LAUNCH A SERIES OF THESE. AND JOY, I'M GONNA BE QUIET, I'M GONNA TURN IT OVER TO YOU. UH, GOOD MORNING COMMISSIONERS. UM, SO WE ATTENDED OUR FIRST COMMUNITY BUDGET PRESENTATION AT RAMONO PARK NEIGHBORHOOD ASSOCIATION IN DISTRICT NINE IN DR. JONI RICKS CODY'S DISTRICT. RAMONA PARK NEIGHBORHOOD ASSOCIATION IS A RELATIVELY NEW, UH, ASSOCIATION CREATED OVER THE LAST TWO YEARS. WE DID HAVE A PACKED HOUSE, HOWEVER, UM, BOTH ENGLISH AND SPANISH SPEAKERS WERE THERE TO HEAR ABOUT, UM, NEIGHBORHOOD UPDATES FROM, UH, PUBLIC SAFETY, FROM COUNCIL DISTRICT NINE, AND AS WELL AS HEAR OUR CONVERSATION OR OUR PRESENTATION AROUND THEIR, UH, THE IMPORTANCE OF OUR, UH, UTILITY SURFACES, CLEAN WATER, UH, RELIABLE GAS, AND ALSO RELIABLE SEWER. SO IT WAS, UM, A REALLY GREAT, UM, VERY INFORMAL, UH, CASUAL CONVERSATION. UH, IT WAS LIKE NEIGHBORS TALKING TO NEIGHBORS. THAT WAS DEFINITELY THE APPROACH THAT I TOOK, UH, BEING BORN AND RAISED HERE IN LONG BEACH AS WELL. AND, UH, EVERYONE THERE HAD REALLY GREAT QUESTIONS, UH, FROM WILL WE HAVE ENOUGH WATER IN THE FUTURE? THAT WAS ONE FROM THE AUDIENCE. THE OTHER WAS WHAT IS A SEWER CROSS BORDER, AND WAS CONFIDENT IN ANSWERING THAT QUESTION. AND THEN LASTLY, GIVING KUDOS TO OUR GAS SERVICES TEAM ON THEIR QUICK RESPONSE TO A GAS LEAK. SO THEY WERE VERY ENGAGED, HAD, UM, UH, HAD GREAT QUESTIONS TO TALK ABOUT OUR UTILITY SERVICES AND LEFT, I, I BELIEVE LEFT REASSURED THAT UTILITIES HAS THEIR BACK. IN FACT, UH, THE PRESIDENT OF THE NEIGHBORHOOD ASSOCIATION WANTS US BACK, UH, AT THE NEXT MEETING. THANK YOU, JOY. AND THAT CONCLUDES MY ANNOUNCEMENTS. THANK YOU. THANK YOU. ARE THERE ANY COMMISSIONER ANNOUNCEMENTS? YEAH, JUST, I JUST WANTED TO FOLLOW UP ON THE BUDGET FOR METROPOLITAN WATER DISTRICT. IT, IT WAS, UM, A LITTLE TOUCH AND GO FOR A WHILE IN THE BEGINNING, BUT I HAVE TO TELL YOU, [01:45:01] IT WAS A UNANIMOUS DECISION AND EVERYBODY CLAPPED AT THE END. SO, UM, AND THAT INCLUDES SOME OF OUR, A LOT OF OUR PUBLIC SPEAKERS WHO WERE VERY SUPPORTIVE OF THE FINAL BUDGET. SO A LOT OF THINGS THAT HAVE TO, WE HAD TO CONSIDER, UH, PURE WATER WAS, UH, ONE, UM, WE HAD TO GO BACK AND FORTH ON THAT. CONSERVATION WAS AN ISSUE AND IT, WE WANTED TO HAVE THAT FUNDED AS WELL. SO, UM, THANK YOU. 'CAUSE YOU PREPARED ME VERY WELL FOR THAT. ANTO, I GREATLY APPRECIATE THAT. COLORADO RIVER. YES, THINGS ARE VERY DIRE. WE HAD A REALLY, UM, TOUGH REPORT FROM, FROM SOMEONE WHO'S WORKING ON THAT VERY CLOSELY FOR METROPOLITAN. AND, UM, WE'RE CLOSE TO POSSIBLE LITIGATION. BUT EVEN IF, IF, IF THERE IS LITIGATION, AS I MENTIONED BEFORE, NO DECISION IS A DECISION AND THEN THERE'LL HAVE TO BE A DECISION ON HOW TO ALLOCATE, UH, THE WATER THAT IS EXISTING IN, IN, UH, LAKE MEAD. UM, GOING DOWN VERY LOW, VERY LOW, UM, REACHING POSSIBLY NEAR DEADPOOL, UH, LOW SNOW PACK, HIGH HEAT. IT'S JUST A PERFECT STORM. UM, AND THEN LASTLY, UH, AND ALSO THE TRIBES HAVE SPOKEN OUT VERY LOUDLY THAT THEY ARE NOT AT THE TABLE, AND THEY'RE VERY CONCERNED ABOUT THAT, AND I'M CONCERNED ABOUT THAT TOO. UM, LASTLY, NEXT SATURDAY I WILL BE ATTENDING, UM, THE ST. ANTHONY HIGH SCHOOL, UM, HALL OF FAME GALA. I HAVE TO MENTION THAT FOR TWO REASONS. YOU HAVE THREE PEOPLE HERE WHO ARE ALUMNI, UM, BUT YOU ALSO HAVE, UH, OUR COMMISSIONER MCGUIRE, WHO IS GOING TO BE INSTALLED IN THE HALL OF FAME AND VERY MUCH DESERVES THAT. SHE, UM, I DON'T WANNA SAY SINGLE-HANDEDLY BECAUSE SHE'S SMART ENOUGH TO KNOW THAT YOU NEED PARTNERS, BUT SHE BROUGHT THAT SCHOOL BACK TO LIFE. UM, IT HAD A VERY LOW ENROLLMENT MANY, MANY YEARS AGO WHEN YOU TOOK OVER. AND THAT HAS BEEN HER LIFE'S PASSION, AND I KNOW THAT'S WHAT'S IN HER SOUL. SO THANK YOU FOR THAT. LOOKING FORWARD TO YOUR CELEBRATION. THANK YOU. YES, SIR. YEAH, I'M CHATTING TODAY. UM, THIS WAS A VERY INFORMATIVE MEETING. I, I JUST WANTED TO, UM, TAKE AN OPPORTUNITY TO, UM, TO RECOGNIZE THIS, THIS NEWSLETTER. I, I HAD AN OPPORTUNITY TO, TO JUST REVIEW THIS IN BETWEEN THE, THE GREAT CONTENT THAT WE RECEIVED HERE TODAY. UM, THERE'S A LITTLE SYMBOL HERE THAT, UM, I WANNA POINT OUT. IT, IT, IT POINTS OUT THE CUSTOMER FINANCE, OPERATIONS AND CULTURE. AND I THINK WE HEARD A LITTLE BIT OF ALL OF THAT TODAY. UM, INSIDE, UH, THERE'S, THERE'S AC ACKNOWLEDGEMENT OF, UH, A API MONTH. WE, WE ARE IN THAT MONTH RIGHT NOW, ASIAN PACIFIC HERITAGE MONTH, UM, AS WELL AS, UM, UM, RECOGNIZING OUR DISPATCHERS DISPATCHER WEEK. AND SO, YOU KNOW, WE HAD AN OPPORTUNITY YESTERDAY, AS WE MENTIONED, WE'RE TOURING FACILITIES AND GOT A CHANCE TO SEE OUR ACTUAL DISPATCHERS AT WORK AND CUSTOMER SERVICE. UH, WAS WAS, THEY WERE HARD AT WORK AND, AND WORKING HARD. AND SO CERTAINLY WANNA RECOGNIZE, UH, THEIR EFFORTS. UM, WE, WE WALKED IN ON GERALDINE. SHE WAS AT HER DESK, UH, WORKING HARD AND REMINDED ME THAT, YOU KNOW, WE'VE WORKED TOGETHER IN THE PAST ON THE CITY BUDGET AND DURING, WHEN I WAS, UH, CHAIR OF THE BUDGET OVERSIGHT COMMITTEE AND, UH, I WILL JUST SAY HER AND STEPHANIE, STEPHANIE AND GERALDINE AND THE ENTIRE FINANCE TEAM, UM, I, I FEEL VERY STRONG AND CONFIDENT THAT WE HAVE A STRONG TEAM, UM, AND, AND WORK HERE FOR THE DEPARTMENT. AND, UH, YOU KNOW, I JUST WANTED TO ACKNOWLEDGE, UH, YOUR, YOUR WORK AND, UH, THE, THE ENTIRE WORK OF THE ENTIRE, UH, DEPARTMENT. UM, OUR, OUR GENERAL MANAGER AND TEAM WERE PUTTING TOGETHER A, A GREAT ORGANIZATION AND IT WAS GREAT HEARING SOME PUBLIC COMMENT FROM ACTUAL PUBLIC RECOGNIZING, UM, THE, THE GOOD WORK HAPPENING HERE WITH LONG BEACH UTILITIES. THANK YOU. THANK YOU. ANY OTHER COMMENTS? SO YOU, YOU CAN LOOK ON YOUTUBE, UM, MISSED PENALTY KICKS 'CAUSE I'M A SOCCER FAN, SO, UH, THERE'S ALL KINDS OF WAYS TO FLUB A PENALTY KICK. AND SO IN ESSENCE, THAT'S HOW I FEEL RIGHT NOW BECAUSE I WAS REMISS IN IDENTIFYING TO YOU THAT THE NEWSLETTER WAS IN FRONT OF YOU. UH, THE NEWSLETTER DOES INDEED, LIKE COMMISSIONER ROSSON SAID, IT REPRESENTS A SIGNIFICANT ACHIEVEMENT FROM THE PUBLIC AFFAIRS STAFF. UH, I'LL ASK JOY IF YOU WOULD HAVE YOUR PUBLIC AFFAIRS STAFF HERE STAND UP SO WE CAN ACKNOWLEDGE THEIR EFFORTS IN PUTTING THIS TOGETHER. I DON'T SEE WHERE DE IS, BUT DELISE Y WORK IS ANOTHER ONE OF THE KEY ENGINES THAT MAKE THIS ENTIRE, UH, PUBLICATION POSSIBLE. UH, LIKE COMMISSIONER AUSTIN SAID, UH, IN TERMS OF THE CORE TENETS THAT WE HAVE, WORKPLACE CULTURE IS ONE OF THEM. AND THIS NEWSLETTER IS ONE OF THE BRIGHTEST EXAMPLES OF HOW WE'RE TRYING TO INSTILL THAT ACROSS THE ORGANIZATION. SO I APOLOGIZE FOR BEING REMISS IN NOT SAYING THAT IT WAS IN FRONT OF YOU. SO, UH, JUST WANTED TO NOTE THAT. THANK YOU. [01:50:01] THANK YOU SO MUCH. UH, NO MORE COMMENTS. THANK YOU. NO MORE ANNOUNCEMENTS. UH, SO WE'RE NOW MOVING INTO CLOSED [CLOSED SESSION] SESSION. BEAR WITH ME AS I READ THIS INTO THE RECORD. EXISTING LITIGATION, CLOSED SESSION CONFERENCE WITH LEGAL COUNSEL RELATING TO EXISTING LITIGATION PURSUANT TO PARAGRAPH ONE OF SUB SUBDIVISION D OF SECTION 5 4 9 5 6 9 OF THE CALIFORNIA GOVERNMENT CODE, LOUIS AND ETAL VERSUS THE CITY OF LONG BEACH ETAL LOS ANGELES SUPERIOR COURT CASE NUMBER TWO FIVE TCV 7 8 8 1, DONALD ETAL VERSUS CITY OF LONG BEACH ETAL, UH, LOS ANGELES SUPERIOR COURT CASE NUMBER TWO FIVE LBCV 0 3 0 9 6 KA GREEN ETAL, CITY OF LONG BEACH, ETAL LONG, UH, LOS ANGELES SUPERIOR COURT CASE NUMBER TWO SIX LBCV 0 5 0 6. AND FRANK LOPEZ ETAL VERSUS CITY OF LONG BEACH ETTO, UH, LOS ANGELES SUPERIOR COURT CASE NUMBER TWO SIX LBCV 0 0 9 8. THAT WAS ONE. NOW NUMBER TWO, THREATENED OR ANTICIPATED LITIGATION, CLOSED SESSION CONFERENCE WITH LEGAL COUNSEL RELATING TO THREATENED OR ANTICIPATED LITIGATION PURSUANT TO PARAGRAPH TWO OF SUBDIVISION D AND PARAGRAPH THREE OF SUBDIVISION E OF SECTION 5 4 9 5 6 9 OF CALIFORNIA GOVERNMENT CODE 11 MATTERS. ALRIGHT, SO HAVING READ ALL THAT INTO THE RECORD, UH, WE WILL BE IN RECESS FOR CLOSED SESSION. YOU ARE WELCOME TO STICK AROUND. UH, WE'LL BE BACK, UH, TO CLOSE OUT CLOSED SESSION, UH, AND ADJOURN THIS MEETING AND THEN MOVE INTO THE PLANNING COMMITTEE MEETING, UH, AS SOON AS POSSIBLE BEFORE WE GO INTO A CLOSED SESSION. UH, CAN YOU ASK FOR A PUBLIC COMMENT ON THE CLOSED SESSION ITEM? DO I EVEN, I EVEN HAD THAT START AND I MISSED IT. UH, IS THERE ANY PUBLIC COMMENT ON THE CLOSED SESSION? EXCELLENT. OKAY. UH, SO WE WILL BE IN RECESS FOR CLOSED SESSION. THANK YOU EVERYONE. WE'RE BACK. UM, LET'S SEE. THE BOARD IS, UH, RECONVENED FROM CLOSED SESSION AND UH, WE'LL HEAR A REPORT OUT FROM MARSHA. PLEASE. UH, THERE IS NOTHING TO REPORT ON, UM, EITHER OF THE CLOSED SESSION ITEMS. SUPER, THANK YOU. SO THAT BEING SAID, THIS MEETING IS NOW ADJOURNED. [ADJOURNMENT] UH, WELL BEFORE I SAY THAT, UNWIND THAT, UH, I ENCOURAGE EVERYONE TO, UH, TO STICK AROUND FOR THE PLANNING COMMITTEE. SO THIS MEETING IS NOW ADJOURNED. THANK YOU. * 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.