[SPECIAL MEETING]
[CALL TO ORDER]
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WELCOME TO THE PUBLIC UTILITIES COMMISSION SPECIAL MEETING.
SPECIAL BECAUSE WE'VE CHANGED THE DATE TO THIS DATE.
UH, THIS MEETING IS NOW CALLED TO ORDER.
[PLEDGE OF ALLEGIANCE]
YOU LIKE TO LEAD US IN THE PLEDGE? THANK YOU.[ROLL CALL]
ROLL CALL.PRESIDENT SCOTT, PRESENT VICE PRESIDENT CORDERO.
[CONSENT CALENDAR]
ITEMS. UH, MAY I PLEASE HAVE A MOTION TO APPROVE THE ITEMS ON THE CONSENT CALENDAR? SO MOVED.UH, ANY PUBLIC COMMENTS? ALL THOSE IN FAVOR, PLEASE SAY AYE.
[4. 26-55114 Recommendation to authorize the General Manager to execute a Memorandum of Understanding, and any subsequent amendments, with Bay Area Community Resources (BACR) to provide California Climate Action Corps (CCAC) Fellows to assist the Long Beach Public Utilities Department (LBPUD) with water conservation program implementation from September 2026 to August 2027. Suggested Action: Approve recommendation. ]
NUMBER FOUR, AUTHORIZE A GENERAL MANAGER TO EXECUTE A, A ME MEMORANDUM OF UNDERSTANDING AND ANY SUBSEQUENT AMENDMENTS WITH BAY AREA COMMUNITY RESOURCES.BACR TO PER, TO PROVIDE CALIFORNIA CLIMATE ACTION CORPS FELLOWS TO ASSIST THE LONG BEACH PUBLIC UTILITIES DEPARTMENT WITH WATER CONSERVATION PROGRAM IMPLEMENTATION FROM SEPTEMBER 26TH TO AUGUST 27TH.
UH, IN ORDER TO HEAR THE PRESENTATION, MAY I PLEASE HAVE A MOTION MOVE? THANK YOU.
IS THAT GOOD ENOUGH? YEAH, YOU'RE GREAT,
UH, STAFF ARE REQUESTING YOUR RECOMMENDATION TODAY TO AUTHORIZE GENERAL MANAGER TO EXECUTE, EXECUTE A MEMORANDUM OF UNDERSTANDING THAT WILL CONTINUE TO SUPPORT CALIFORNIA CLIMATE ACTION CORPS FELLOWS, OR WE CALL THE CCAC FELLOWS.
CCAC IS PART OF A STATEWIDE INITIATIVE TO ADDRESS AND MITIGATE THE EFFECTS OF CLIMATE CHANGE BY MATCHING FELLOWS WITH LOCAL ORGANIZATIONS TO MOBILIZE COMMUNITY MEMBERS ON DIRECT CLIMATE ACTION.
THROUGH EDUCATION, VOLUNTEER ENGAGEMENT AND ASSESSMENT WITH PROJECTS FOCUSED ON URBAN GREENING, ORGANIC WASTE DIVERSION, EDIBLE FOOD RECOVERY, AND WILDFIRE RESILIENCY, THE FUTURE SELECTED FELLOWS WILL SERVE APPROXIMATELY 11 MONTHS BETWEEN SEPTEMBER, 2026 AND AUGUST, 2027.
FELLOWS WILL ASSIST UTILITIES IN EXPANDING THE OUTREACH OF URBAN GREENING OPPORTUNITIES THROUGH OUR WATER CONSERVATION PROGRAMS, ASSIST PAST PROGRAMS PARTICIPANTS WITH LANDSCAPE EDUCATION CONSULTATIONS, AND ASSIST IN IDENTIFYING AND CATEGORIZING AREAS WITHIN THE CITY WITH TURF FOR, FOR FUTURE TURF REPLACEMENT PROJECTS.
FELLOWS WILL ALSO ASSIST IN COORDINATING WITH LOCAL NONPROFITS, VOLUNTEER GROUPS, AND COMMUNITY-BASED ORGANIZATIONS TO ORGANIZE OUTDOOR URBAN GREENING EDUCATIONAL WORKSHOPS AND CLASSES.
UTILITIES HAS HAD THE PREVIOUS SUCCESS HOSTING FELLOWS WITHIN THE WATER RESOURCES BUREAU BETWEEN 2017 AND 2026 NINE.
FELLOWS HAVE BEEN HOSTED AND PROVIDED WITH JOB SKILLS AND PROFESSIONAL DEVELOPMENT TO MEET THEIR GOAL TO DIRECT CLIMATE ACTION THROUGH EDUCATION.
AS A RESULT OF THE CALIFORNIA VOLUNTEERS GRANT, THERE'S A ZERO COST SHARE REQUIRED FROM UTILITIES TO HOST OUR CCAC FELLOWS.
THIS RESULTS IN A ZERO FISCAL IMPACT ASSOCIATED WITH THIS RECOMMENDATION.
THIS ACTION SUPPORTS OUR UTILITIES BUSINESS PLAN TO INCREASE CAREER DEVELOPMENT BY IMPLEMENTING INTERNSHIPS AND FELLOWSHIP GRANT PROGRAMS TO FOSTER TALENT DEVELOPMENT, AS WELL AS SUPPORT OUR COMMUNITY ENGAGEMENT.
WITH THAT BACKGROUND, STAFF REQUESTS YOUR RECOMMENDATION TO AUTHORIZE THE GENERAL MANAGER TO EXECUTE A MEMORANDUM OF UNDERSTANDING AND ANY SUBSEQUENT AMENDMENTS WITH BAY AREA COMMUNITY RESOURCES, BACR TO PROVIDE CALIFORNIA CLIMATE ACTION CORPS FELLOWS TO ASSIST THE LONG BEACH PUBLIC UTILITIES DEPARTMENT WITH WATER CONSERVATION PROGRAM IMPLEMENTATION FROM SEPTEMBER, 2026 THROUGH AUGUST, 2027.
I CAN ANSWER ANY QUESTIONS IF YOU HAVE ANY.
UH, BEFORE WE DO THAT, ARE THERE ANY PUBLIC COMMENTS? UH, ANY COMMISSIONER COMMENTS? YES, MA'AM.
YEAH, I JUST WANT, JOEY, THANK YOU SO MUCH.
THIS IS SUCH A WONDERFUL PROGRAM AND PROJECT AND, UM, UH, IT STARTS IN SEPTEMBER.
WHEN DOES THE SELECTION PROCESS START? AND WE DON'T HAVE ANYTHING TO DO WITH THE SELECTION.
WE DO, WE DO ACTUALLY, UH, WHEN FELLOWS APPLY, THEY DIRECT THEIR SPECIFIC REQUESTS WITHIN COUNTIES AND WITHIN CITIES.
SO WE HAVE LONG BEACH UTILITIES AS WELL AS, UH, DIFFERENT, UH, DEPARTMENTS WITHIN THE CITY THAT ARE APPLYING FOR FELLOWS.
[00:05:01]
SO THEY HAVE THE CHOICE OF CHOOSING LONG BEACH UTILITIES.SO WE'RE ABLE TO FILTER OUT PEOPLE THAT WANT TO WORK AT UTILITIES AND LEARN FROM US.
AND THEN WE THEN GO THROUGH A PROCESS OF, UH, BRINGING THEM ON BOARD AND WE HAVE ACTUAL, UM, UH, INTERVIEWS WITH THEM.
AND THERE'S THE POTENTIAL THAT WE HAVE COULD HAVE OVER A HUNDRED APPLICANTS FOR LONG BEACH UTILITIES SPECIFICALLY.
SO THE, WHEN THEY APPLY, THEY APPLY TO THE CITY OF LONG BEACH AND THEN THEY CAN GO TO DIFFERENT DEPARTMENTS, IS THAT CORRECT? UH, THEY, THEY APPLY THROUGH CCAC WHO HAS A HOSTED WEBSITE.
AND THAT WEBSITE THEN, UH, ALLOWS THEM THE OPTIONS TO APPLY FOR DIFFERENT HOST SITES.
AND THEN WE'RE, UH, NOTIFIED OF WHICH, UH, CANDIDATES AND FELLOWS WANT TO COME AND WORK WITH US, AND THEN WE CAN CHOOSE FROM THAT LIST.
SO DOES, UH, WE, IT USED TO BE CALLED SUSTAINABILITY COMMISSION.
I DON'T, WHAT IS IT CALLED NOW? UH, RIGHT NOW IT'S CALIFORNIA CLIMATE ACTION CORPS, BUT THERE'S A SERIES OF DIFFERENT, UH, CORES THAT WORK WITHIN THE CITY.
WE HAVE A, WHAT'S THE COMMISSION? THAT USED TO BE THE SUSTAINABILITY COMMISSION.
THERE IS THE SUSTAINABILITY COMMISSION STILL THE, AND WE, WE PAY INTO THAT, IS THAT CORRECT? I'M NOT SURE ABOUT WHAT THE PAYMENT IS.
WE, WE DON'T PAY INTO THE COMMISSION, BUT WE PAY INTO THE DEPARTMENT.
DO THEY HAVE, UH, INTERNS? THERE'S A, THERE'S A, THERE'S TWO DIFFERENT, UM, OPPORTUNITIES THAT ARE IN THE CITY.
THERE'S ALSO THE LONG BEACH PUBLIC SERVICE SCORE, WHICH IS ANOTHER GROUP THAT WE WORK WITH, AND WE HAVE A FELLOW FOR RIGHT NOW, SEPARATE FROM, UH, CCAC.
I THINK MAYBE WHAT YOU'RE, UM, ASKING ABOUT IS THE OFFICE OF CLIMATE ACTION AND SUSTAINABILITY.
SO, SO THEY ACTUALLY HAVE A COUPLE OF, UH, CLIMATE ACTION FELLOWS AS WELL.
I CAN'T REMEMBER HOW MANY, BUT THAT, THAT'S WHEN JOEY WAS TALKING ABOUT THE DIFFERENT, UM, OPPORTUNITIES WITHIN THE CITY.
A LOT OF THEM WORK WITH THE OFFICE OF CLIMATE ACTION AND SUSTAINABILITY.
YOU KNOW, IT SEEMS TO ME THAT THERE'S A, THERE'S AN OVERLAP AND THERE'S A NEXUS BETWEEN THAT OFFICE OF CLIMATE ACTION WITH THE CITY.
IS THAT WHAT WE, WE, WE, THERE IS, THERE IS NO OVERLAP.
THEY, THEY HAVE A DIFFERENT FOCUS.
SO THE PROGRAMS THAT THEY'RE ORIENTED ON HAVE SOME TANGENTS TO RESOURCE CONSERVATION, BUT THEY'RE NOT DIRECTLY RELATED.
THE, THE CLIMATE ACTION FELLOWS THAT WE TAKE ARE SPECIFICALLY FOR RESOURCE CONSERVATION.
SO THERE IS NO, THERE IS NO DIRECT OVERLAP IN THAT SENSE.
AND THEN WE WILL GET AN OPPORTUNITY TO MEET THEM WHEN THEY COME ON.
WE'RE GONNA COME HERE AND GIVE YOU ALL A PRESENTATION ABOUT THE WORK THAT THEY'RE DOING.
THANK YOU FOR GOOD WORK, AUSTIN.
UH, SO I'LL JUST START THAT FULL SUPPORT OF THE PROGRAM BECAUSE IT'S FREE, IT DOESN'T COST US ANYTHING
UM, BUT I DID HAVE A QUESTION, AND THANK YOU FOR THE THOUGHTFUL QUESTIONS.
UH, COMMISSIONER CORDERO, UH, I DID WANT HAVE A QUESTION ABOUT THE BAY AREA COMMUNITY RESOURCES GROUP AS THE, I GUESS, THE UMBRELLA TO, TO PROVIDE THE, THE FELLOW.
UM, IS THERE ANY REASON WHY THAT PARTICULAR GROUP OR IS THERE ONE MORE LOCAL THAT, THAT WE COULD WORK WITH? UH, THE CALIFORNIA VOLUNTEERS GROUP, UM, WHICH IS A DIRECT GROUP THAT WORKS WITH, UH, THE CALIFORNIA GOVERNOR UNDERNEATH THEIR GENERAL FUND GENERAL, UH, THE CALIFORNIA GENERAL FUND GIVES MONEY TO CALIFORNIA VOLUNTEERS, BACR BAY AREA COMMUNITY RESOURCES, UH, APPLIES FOR THAT GRANT FROM CALIFORNIA VOLUNTEERS, AND THEY DISTRIBUTE THIS PROGRAM THROUGHOUT ALL OF CALIFORNIA, THROUGHOUT THE STATE.
ANY OTHER COMMISSIONER COMMENTS? ALL RIGHT.
[5. 26-55115 Recommendation to adopt Specifications WD-04-26 and WD-05-26 and award a contract to Caliagua, Inc., for the Equipping of Water Wells Commission 23A & El Dorado 2 and Lakewood Interconnect Meter New SCE Service (O-0750 & EO-3497), in a total amount not to exceed $7,274,084; and authorize the General Manager to execute all documents necessary to enter into the contract, including any amendments. Suggested Action: Approve recommendation. ]
SPECIFICATIONS WD 0 4 2 6 AND WD 0 5 2 6.AND AWARD A CONTRACT TO, FOR THE EQUIPMENT EQUIPPING OF WATER WELLS COMMISSION 23 A AND EL DORADO TWO AND LAKEWOOD INTERCHANGE METER NEW SCE SERVICE.
UH, FOR THE PRESENTATION, MAY I PLEASE HAVE A MOTION? SO SECOND.
UH, CALL ON CAROLINA ANO PLEASE.
THAT'S DEFINITELY A LONG NAME.
UM, MY NAME IS CAROLINA ANO AND I WILL PRESENTING FOR THE, UM, FOR THIS PROJECT.
WE HAVE THREE DIFFERENT ASSETS TO PRESENT.
UH, WATER WELLS COMMISSION 23 A EL DORADO TWO, AND LAKEWOOD INTERCONNECT METER FOR THE PROJECT LOCATION COMMISSION 23 A AND EL DORADO.
UM, THIS IS THE PICTURE ON THE LEFT HAND SIDE.
YOU CAN SEE ON HERE THAT THIS IS AN EL DORADO PARK AND IT IS FOUNDED BY
[00:10:01]
SAN GABRIEL RIVER, UM, LONG BEACH TOWN CENTER, 6 0 5 FREEWAY AND WARLOW ROAD.IN THE SAME PICTURE, YOU CAN ALSO SEE THAT THE, WHILE EL DORADO TWO IS ON THE NORTH END, IT'S CLOSE TO, UM, THE POLICE ACADEMY.
AND ON THE SOUTH END, YOU'LL SEE THAT COMMISSION 23 IS ON THE SOUTH END.
UM, THE TWO WELLS ARE APPROXIMATELY, UM, 2,800 FEET AWAY FROM EACH OTHER.
AND IN THE SAME PICTURE, YOU CAN ALSO SEE THAT THERE ARE TWO EXISTING WELLS COMMISSION 21 AND COMMISSION 22 A FOR THE THIRD ASSET, UM, INTERCONNECT.
THAT'S THE PICTURE ON THE RIGHT.
THAT FACILITY IS INSIDE HARTWELL PARK, AND IT IS ALSO, UM, INSIDE THE PARK.
AND THE CLOSEST CROSS STREET IS HAR PARK IS PA AND CARSON STREET.
A LITTLE OF BACKGROUND ON THE WELLS.
UM, THESE TWO NEW WELLS WERE DRILLED IN 2024 FOR COMMISSION 23 A.
THE DEPTH IS 740 FEET, UM, BELOW GRAY SURFACE FOR EL DORADO 22.
THE DEPTH IS 940 FEET BELOW GROUND SURFACE COMMISSION 23 A HAS 200 AND AND 16 FEET OF LUBER SCREEN.
AND EL DORADO TWO HAS 220 FEET OF LUBER SCREEN.
THIS IS THE SCREEN'S OPENING INSIDE THE WELL CASINGS FOR EACH.
IT IS ANTICIPATED THAT THESE TWO WELLS WILL DRAW RAW WATER FROM SILVERADO AND SUNNYSIDE AQUIFER.
THESE TWO NEW WELLS ARE PART OF THE DEPARTMENT'S 10 YEAR CIP PLAN AND MEET OUR DEPARTMENT'S BUSINESS PLAN GOALS FOR MAINTAINING OUR WELL PROGRAM.
UM, FOR GROUND, FOR BACKGROUND OF LIQUID INTERCONNECT, THE PROJECT IS TO PROVIDE NEW PERMANENT EDISON SERVICE TO THE EXISTING LIQUID INTERCONNECT METER SERVICE.
UM, THIS SITE IS CURRENTLY POWERED BY TEMPORARY INFRASTRUCTURE WITH SOLAR PANEL BATTERY AND CONTROL PANELS.
THE PURPOSE IS TO IMPROVE RELIABILITY BY TRANSITIONING TO A PERMANENT UTILITY POWER SOURCE.
AND THIS WILL ALSO REDUCE MAINTENANCE NEEDS.
THE POWER FOR THE CONTROL VALVE, THE POWER IS FOR THE CONTROL VALVE AND THE FLOW METER.
IN THE LAST COUPLE OF YEARS, THE BATTERY HAS BEEN VANDALIZED.
THE NEW CONNECTION WILL RUN UNDERGROUND TO AN EXISTING EDISON POLE FOR THE SCOPE OF WORK, UM, FOR CONVENTION 23 A AND EL DODO TWO UM, MOTOR.
THERE, WE WILL BE INSTALLING MOTOR PUMP ELECTRICAL IMPROVEMENT AND ASSOCIATED PIPING.
AND ALSO THERE WILL BE, UM, SITE IMPROVEMENTS.
IT IS ALSO EXPECTED THAT EACH WELL WILL BE PUMPING A CAPACITY OF 2,500 GALLONS PER MINUTE FOR LIQUID INTERCONNECT.
THE NEW SERVICE, THIS SCOPE IS TO PROVIDE NEW ELECTRICAL SERVICE FROM EDISON TO THE POWER FACILITY.
AND WE WILL ALSO BE DEMOLISHING THE EXISTING SOLAR PANELS, THE BATTERY AND THE CONTROL PANEL.
THIS NEXT SLIDE SHOWS THE TYPICAL CONDITIONS AFTER THE PROJECT IS COMPLETED.
UM, THE PICTURE ON THE LEFT, THE, THE TWO PICTURES ON THE LEFT, UM, SHOWS THE HOUSING OF WHAT THE WALLS WILL LOOK IN THE PARK, IN THE PARKS, IN THE PIPING WITH THE ELECTRICAL AND INSTRUMENTATION PANELS.
THIS RUNS THE WELL AND THE, AND COMMUNICATE BACK TO OUR CONTROL ROOM.
AND THE PICTURE, THESE TWO PICTURES TO THE LEFT SHOWS THE, UM, COMMISSION 22 A AND UM, IT IS ALSO INSIDE, UM, THE HOUSING OF COMMISSION 22 A.
THE PICTURE ON THE RIGHT IS A LIQUID INTERCONNECT FACILITY.
THIS SIDE WILL MOSTLY REMAIN THE SAME WITH THE EXCEPTION EXCEPTIONS LISTED IN THE PICTURES.
UM, IN THE PREVIOUS LIGHT ON HERE, YOU CAN SEE THAT THERE'S A SOLAR PANEL THERE, UM, THAT WILL BE RE REMOVED.
UM, AND THE FACILITY WILL STAY, UM, MOSTLY THE SAME.
SO FOR THIS PROJECT, THE NOTICE OF INVITING BITS FOR THE EQUIPPING OF WATER WALLS COMMISSION 23 8 AND EL DORADO TWO AND LAKEWOOD INTERCONNECT METER, THE NEW S ME METER NEW SERVICE WAS PUBLISHED IN MARCH, 2026.
ON APRIL 7TH, 2026, THREE BIDS WERE RECEIVED AND OPENED.
THE BID STIPULATION IS ATTACHED.
AFTER EVALUATING ALL BIDS RECEIVED FOR THE LOWEST RESPONSIVE BIDS SUBMITTED BY
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CAWA INC.AND THE AMOUNT OF $7,274,084 WAS FOUND TO BE IN CONFORMANCE WITH THE BID DOCUMENTS.
THUS, STAFF STAFFS RECOMMEND TO ADOPT SPECIFICATIONS WD 0 4 26 AND WD 0 5 26, AND AWARD A CONTRACT TO CAWA FOR THE PROJECT AND THE AMOUNT NOT TO EXCEED $7,274,084, AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE ALL DOCUMENTS NECESSARY TO ENTER INTO THE CONTRACT, INCLUDING ANY AMENDMENTS.
AND WITH THAT BEING SAID, THIS CONCLUDES MY PRESENTATION AND I WILL, UH, TAKE ANY QUESTIONS.
CAROLINA, ARE THERE ANY PUBLIC COMMENTS? ARE THERE ANY COMMISSIONER COMMENTS? YES, SIR.
THANK YOU FOR THE PRESENTATION.
JUST WHEN WILL THIS PROJECT START AND WHEN IS YOUR ESTIMATED COMPLETION DATE? IT SEEMS LIKE ON SOME OF THESE PROJECTS, THERE'S A LEAD TIME FOR THE PUMPS, ET CETERA.
SO WHEN WILL THIS BE DONE? WHEN WILL THIS BE DONE? SO WE ANTICIPATE THAT THIS PROJECT WILL PROBABLY TAKE APPROXIMATELY TWO YEARS.
AND THAT'S BECAUSE WE DO HAVE SOME, SOME LONG LEAD ITEMS. TYPICALLY THE ELECTRICAL AND THE, UM, THE ELECTRICAL, WHICH IS THE, AND THE INSTRUMENTATION WILL BE THE LEAD ITEMS, WHICH IS THE, UM, BFD AND THE SWITCH GEAR.
AND THOSE ARE USUALLY A YEAR OF, UH, WAITING.
SO THE 7.2 MILLION IS NOT GONNA BE SPENT THIS YEAR? NO.
THE SEVEN 2 MILLION WILL BE SPENT IN A SPAN OF TWO YEARS.
UM, KELLY AWA IS FROM ANAHEIM, RIGHT? SO THEY'RE FAIRLY, YES.
UM, ARE THE OTHER TWO OR THE OTHER TWO, OR ARE THEY OUTSIDE? OH, THE OTHER TWO.
BUT I, I HAVE TO POINT OUT, THE NAME IS A CLEVER CALI, CALIFORNIA, AND I'LL OFFER WATER.
SO I OH, YES, IT'S IN SPANISH.
ANY OTHER COMMISSIONER COMMENTS? ALL RIGHT, WE HAVE A MOTION AND A SECOND.
UH, ALL THOSE IN FAVOR, PLEASE SAY AYE.
[6. 26-55116 Recommendation to adopt Resolution No. UT-1552 authorizing the General Manager to execute a contract and any necessary documents, including any amendments, with Geotab USA, Inc., to furnish and deliver fleet telematics software and associated services, on the same terms and conditions afforded to the California Department of General Services (DGS) (Contract No. 1-19-58-69), in an annual amount not to exceed $48,000, until the DGS contract expires on June 17, 2027, with the option to renew for as long as the DGS contract is in effect, at the discretion of the General Manager. Suggested Action: Approve recommendation. ]
ADOPT RESOLUTION NUMBER UT 1552.THANK YOU, CAROLINA, FOR THE PRESENTATION.
UH, AUTHORIZING THE GENERAL MANAGER TO EXECUTE A CONTRACT AND ANY NECESSARY DOCUMENTS, INCLUDING ANY AMENDMENTS WITH GEOTAB, USA INC.
TO FURNISH AND DELIVER FLEET TELEMATICS SOFTWARE AND ASSOCIATED SERVICES.
UH, THIS ITEM IS BEFORE US, UH, WITH A STAFF RECOMMENDATION IN THE INTEREST OF TIME.
AND UNLESS THERE'S AN OBJECTION FROM THE COMMISSION CHAIR, WOULD ENTERTAIN PROCEEDING TO APPROVE THE STAFF RECOMMENDATION WITHOUT A STAFF PRESENTATION.
SO, HEARING NO REQUEST FOR PRESENTATION, WE'VE GOT A MOTION, UH, TO ADOPT THE RESOLUTION.
AND A SECOND, UH, THIS IS A, UH, ROLL CALL VOTE.
SO DINA, MAY WE PLEASE HAVE THE ROLL CALL.
UM, I NEGLECTED TO ASK FOR ANY PUBLIC COMMENTS BEFORE WE DID THAT.
[7. 26-55117 Recommendation to adopt Resolution No. UT-1553 authorizing the General Manager to execute a contract, and any necessary documents, including any amendments, with Gilbarco Inc., to furnish and deliver fleet management software and associated services on the same terms and conditions afforded to Sourcewell (Master Agreement No. 081524), in an annual amount not to exceed $25,000, until the Sourcewell contract expires on November 18, 2028, with the option to renew for as long as the Sourcewell contract is in effect, at the discretion of the General Manager. Suggested Action: Approve recommendation. ]
UH, SIMILAR, UH, ADOPT RESOLUTION NUMBER UT 1 5 5 3, AUTHORIZED IN THE GENERAL MANAGER TO EXECUTE A CONTRACT AND ANY NECESSARY DOCUMENTS, INCLUDING ANY AMENDMENTS WITH GIL BARCO INC.TO FURNISH AND DELIVER FLEET MANAGEMENT SOFTWARE AND ASSOCIATED SERVICES.
AGAIN, THIS ITEM IS BEFORE US WITH THE STAFF RECOMMENDATION.
AND UNLESS THERE'S AN OBJECTION FROM THE COMMISSION, THE CHAIR WOULD ENTERTAIN PROCEEDING TO APPROVE THE STAFF RECOMMENDATION WITHOUT A STAFF REPRESENTATION.
BEFORE WE VOTE, ARE THERE ANY PUBLIC COMMENTS? THANK YOU.
UH, SO WE HAVE A MOTION, UH, TO ADOPT THE RESOLUTION.
AND A SECOND, UH, AGAIN, THIS IS A, UH, RESOLUTION, WHICH REQUIRES A ROLL CALL VOTE.
DINA, MAY WE PLEASE HAVE THE ROLL CALL.
UH, AGENDA ITEM NUMBER EIGHT, SIMILAR
[8. 26-55118 Recommendation to adopt Resolution No. UT-1554 authorizing the General Manager to execute a contract, and any necessary documents, including any amendments, with VWR International, LLC, for the purchase and delivery of a Gas Chromatography Dual Electron Capture Detector, on the same terms and conditions afforded to the California Department of General Services (DGS) (Participating Addendum No. 7-24-99-50-03 to the Idaho NASPO ValuePoint Master Agreement No. MA2024005), in a total amount not to exceed $140,000, until the contract expires on February 28, 2029. Suggested Action: Approve recommendation. ]
TO THE PREVIOUS TWO, ADOPT RESOLUTION NUMBER UT 1 5 54, AUTHORIZED IN THE GENERAL MANAGER TO EXECUTE A CONTRACT IN ANY NECESSARY DOCUMENTS, INCLUDING ANY AMENDMENTS WITH VWR INTERNATIONAL LLC FOR THE PURCHASE AND DELIVERY OF A GAS CHROMATOGRAPHY DUAL ELECTRON CAPTURE DETECTOR.[00:20:01]
UH, THIS ITEM IS BEFORE US WITH THE STAFF RECOMMENDATION IN THE INTEREST OF TIME, AND UNLESS THERE'S AN OBJECTION FROM THE COMMISSION CHAIR, WOULD ENTERTAIN PROCEEDING TO APPROVE THE STAFF RECOMMENDATION WITHOUT A STAFF PRESENTATION.UH, ARE THERE ANY PUBLIC COMMENTS? UH, THIS IS AGAIN, A ROLL CALL, VOTE ADINA.
MAY WE PLEASE HAVE ROLL CALL VICE PRESIDENT CORDERO? YES.
AGENDA ITEM NUMBER NINE, ADOPT RESOLUTION
[9. 26-55119 Recommendation to adopt Resolution No. UT-1555 authorizing the General Manager to execute a contract, and any necessary documents, including any amendments, with Graybar Electric Company, Inc., for the purchase of electrical, lighting, data communications and security products and related products, services and solutions, on the same terms and conditions afforded to the City of Kansas City, Missouri (Contract No. EV2370), through Omnia Partners, in a total amount not to exceed $700,000 until the Kansas City contract expires on January 31, 2029, with the option to renew for as long as the Kansas City contract is in effect, at the discretion of the General Manager. Suggested Action: Approve recommendation. ]
NUMBER UT 1 5 5 5.AUTHORIZED THE GENERAL MANAGER TO EXECUTE A CONTRACT AND ANY NECESSARY DOCUMENTS, INCLUDING ANY AMENDMENTS WITH GRAYBAR ELECTRIC COMPANY FOR THE PURCHASE OF ELECTRICAL LIGHTING, DATA COMMUNICATIONS AND SECURITY PRODUCTS AND RELATED PRODUCTS, SERVICES AND SOLUTIONS.
UH, AGAIN, THIS ITEM IS BEFORE US WITH STAFF RECOMMENDATION.
IN THE INTEREST OF TIME, UNLESS THERE'S AN OBJECTION FROM THE COMMISSION, THE CHAIR WOULD ENTERTAIN PROCEEDING TO APPROVE THE STAFF RECOMMENDATION WITHOUT A STAFF PRESENTATION.
ARE THERE ANY PUBLIC COMMENTS? UH, THAT THIS, AGAIN IS A RESOLUTION REQUIRING A ROLL CALL VOTE.
DINA, MAY WE PLEASE HAVE A ROLL CALL? VICE PRESIDENT CORDERO? YES.
THE RESOLUTION PASSES ITEM NUMBER, AGENDA ITEM NUMBER 10, ADOPT
[10. 26-55120 Recommendation to adopt Resolution No. UT-1556 authorizing the General Manager to execute a contract, and any necessary documents, including any amendments, with Tri-Pacific Supply, Inc., for the purchase of Sensus USA residential gas meters and Advanced Metering Infrastructure (AMI) equipment, including technical and commercial support for the products; ABB Global analytical software; Baker Hughes natural gas regulators; Kerotest Manufacturing Corporation large insulators and insulated valves; Safeco Filter Products Inc. commercial and industrial gas filters; and Sensit Technologies natural gas detection instruments, in a total amount not to exceed $6,000,000 for a period of two years, with the option to renew for one additional two-year period, at the discretion of the General Manager. Suggested Action: Approve recommendation. ]
RESOLUTION NUMBER UT 1 5 5 6.AUTHORIZING THE GENERAL MANAGER TO EXECUTE A CONTRACT IN ANY NECESSARY DOCUMENTS, INCLUDING ANY AMENDMENTS WITH TRI PACIFIC SUPPLY INC.
FOR THE PURCHASE OF CENSUS USA RESIDENTIAL GAS METERS AND ADVANCED METERING INFRASTRUCTURE, A MI EQUIPMENT, INCLUDING TECHNICAL AND COMMERCIAL SUPPORT FOR THE PRODUCTS.
A, BB, GLOBAL ANALYTICAL SOFTWARE, BAKER HUGHES NATURAL GAS REGULATORS, CARRO TEST, MANUFACTURING CORPORATION, LARGE INSULATORS AND INSULATED VALVES, SAFECO FILTER PRODUCTS INC.
COMMERCIAL AND INDUSTRIAL GAS FILTERS AND SENSOR TECHNOLOGIES, NATURAL GAS DETECTION INSTRUMENTS.
UH, THIS ITEM AGAIN, IS BEFORE US WITH A STAFF RECOMMENDATION IN THE INTEREST OF TIME.
AND UNLESS THERE'S AN OBJECTION FROM THE COMMISSION CHAIR, WOULD ENTERTAIN PROCEEDING TO APPROVE THE STAFF RECOMMENDATION WITHOUT A STAFF PRESENTATION.
ARE THERE ANY PUBLIC COMMENTS? UH, THIS AGAIN, UH, IS A RESOLUTION REQUIRED REQUIRING A ROLL CALL VOTE.
DINA, MAY WE PLEASE HAVE ROLL CALL VICE PRESIDENT CORDERO? YES.
THE RESOLUTION PASSES ITEM NUMBER 11, TONY FOSTER IN THE ROOM.
TONY, YOU'RE NOT OFF THE HOOK.
[11. 26-55121 Recommendation to authorize the General Manager to release Assembly Bill 32 (AB 32) Cap-and-Invest Program revenues generated through California’s Cap-and-Invest Consignment Auction in Fiscal Year 2026 for qualifying Greenhouse Gas reduction programs and projects in FY 2027, in compliance with the California Global Warming Solutions Act of 2006. Suggested Action: Approve recommendation. ]
GENERAL MANAGER TO RELEASE ASSEMBLY BILL THREE TWO AB 32 CAP AND INVEST PROGRAM REVENUES GENERATED THROUGH CALIFORNIA'S CAP INVEST CONSIGNMENT AUCTION IN FISCAL YEAR 2026 FOR QUALIFYING GREENHOUSE GAS, GAS REDUCTION PROGRAMS AND PROJECTS IN FY 2027 IN COMPLIANCE WITH THE CALIFORNIA GLOBAL WARMING SOLUTIONS ACT OF 2006.UH, IN ORDER TO HEAR TONY'S PRESENTATION, MAY I PLEASE HAVE A MOTION? SO MOVED.
GOOD MORNING, PRESIDENT AND COMMISSIONERS.
TODAY WE ARE PRESENTING LONG BEACH UTILITIES, RECOMMENDED FISCAL YEAR 27 ALLOCATION OF ASSEMBLY BILL 32 CAP AND INVEST REVENUES.
THIS PRESENTATION WILL PROVIDE A BRIEF OVERVIEW OF THE PROGRAM, HOW THESE REVENUES ARE GENERATED, HOW LONG BEACH HAS HISTORICALLY USED THESE FUNDS, AND OUR RECOMMENDED PROJECT INVESTMENTS TO CONTINUE REDUCING GREENHOUSE GAS EMISSIONS WHILE SUPPORTING CUSTOMER AFFORDABILITY AND OPERATIONAL EFFICIENCY.
TO BEGIN WITH CONTEXT, CALIFORNIA'S GREENHOUSE GAS REDUCTION FRAMEWORK BEGAN IN 2006 WITH ASSEMBLY BILL 32, CALIFORNIA GLOBAL WARMING SOLUTIONS ACT.
WHAT MANY ORIGINALLY KNEW AS CAP AND TRADE WAS NOW EVOLVED, HAS NOW EVOLVED INTO CAP AND INVEST, AND THIS PROGRAM HAS BEEN EXTENDED THROUGH 2045.
THE UNDERLYING OBJECTIVE REMAINS THE SAME, REDUCING GREENHOUSE GAS EMISSIONS STATEWIDE WHILE CREATING FUNDING OPPORTUNITIES FOR EMISSIONS REDUCING INVESTMENTS.
OKAY, THIS IS A STATEWIDE REGULATORY PROGRAM ADMINISTERED BY THE CALIFORNIA AIR RESOURCES BOARD OR CARB NATURAL GAS UTILITIES, SUCH AS LONG BEACH UTILITIES BECAME SUBJECT TO
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MANDATORY REPORTING REQUIREMENTS IN 2015.AS THE PROGRAM HAS EVOLVED, RECENT REGULATORY CHANGES INCREASINGLY EMPHASIZE ELECTRIFICATION BASED STRATEGIES, MAKING IT PARTICULARLY IMPORTANT THAT LONG BEACH CONTINUE TO ADVOCATE FOR FLEXIBLE PROGRAMMATIC EMISSIONS REDUCTIONS, APPROACHES THAT PRESERVE CUSTOMER AFFORDABILITY.
AT A HIGH LEVEL, THE PROGRAM PLACES A CAP ON ALLOWABLE GREENHOUSE GAS EMISSIONS.
UTILITIES RECEIVE EMISSIONS ALLOWANCES, BUT THOSE ALLOWANCES DECLINE OVER TIME HEIGHTENING THE COMPLIANCE FRAMEWORK EACH YEAR.
GROWING SHARE OF THOSE ALLOWANCES MUST BE SOLD THROUGH CARB AUCTIONS RATHER THAN RETAINED FOR COMPLIANCE USE.
PRACTICAL RESULT IS INCREASED COMPLIANCE PRESSURE, REDUCED FLEXIBILITY, AND THE GENERATION OF REVENUE THAT CAN BE REINVESTED IN QUALIFYING GREENHOUSE GAS REDUCTION PROGRAMS. THE VALUE OF THESE ALLOCATIONS IS MARKET DRIVEN AND VARIES FROM QUARTER TO QUARTER BASED ON AUCTION PRICING.
HISTORICALLY, BOTH THE PERCENTAGE OF THE ALLOWANCES REQUIRED TO BE AUCTIONED AND THE VALUE OF THE, OF THOSE ALLOWANCES INCREASED OVER TIME.
THIS MEANS THAT THE PROGRAM CREATES BOTH FINANCIAL OBLIGATIONS AND REVENUE OPPORTUNITIES REQUIRING DISCIPLINED PLANNING TO ENSURE THESE FUNDS ARE DIRECTED TOWARDS PROJECTS THAT DELIVER MEASURABLE ENVIRONMENTAL AND CUSTOMER VALUE.
SO THIS CHART ILLUSTRATES LONG BEACH AUCTION REVENUE PERFORMANCE REVENUES GENERALLY INCREASED SIGNIFICANTLY BETWEEN 2015 AND 2024, REFLECTING BOTH ALLOWANCE PRICING AND PROGRAM STRUCTURE WHILE REVENUES DECLINED IN 2025, THE OVERALL TREND INDICATES THAT THIS REMAINS A MEANINGFUL FUNDING SOURCE FOR EMISSIONS REDUCTIONS, INITIATIVES, STRATEGIC INFRASTRUCTURE INVESTMENTS, AND CUSTOMER FACING EFFICIENCY PROGRAMS. SINCE 2015, LONG BEACH HAS INVESTED APPROXIMATELY 19.2 MILLION IN AB 32 PROCEEDS.
HISTORICALLY, THE LARGEST SHARE HAS SUPPORTED CUSTOMER AFFORDABILITY THROUGH DIRECT BILL RELIEF, PARTICULARLY DURING PERIODS OF ELEVATED NATURAL GAS PRICES.
THE SECOND MAJOR CATEGORY HAS BEEN ENERGY EFFICIENT INVESTMENTS, INCLUDING DIRECT APPLIANCE PROGRAMS, FACILITY UPGRADES, AND EV INFRASTRUCTURE.
THIS REFLECTS A BALANCED APPROACH BETWEEN IMMEDIATE CUSTOMER SUPPORT AND LONG-TERM EMISSIONS REDUCTION.
SO FOR FISCAL YEAR 27, LONG BEACH UTILITIES IS RECOMMENDING A SIGNIFICANT CONTINUED INVESTMENT IN UTILITY LED CUSTOMER EFFICIENCY PROGRAMS. THESE INCLUDE EXPANSIONS OF OUR DIRECT INSTALL APPLIANCE OFFERINGS ACROSS SINGLE FAMILY, MULTIFAMILY MANUFACTURED HOUSING AND COMMERCIAL INDUSTRIAL AND INSTITUTIONAL CUSTOMER SEGMENTS.
THESE PROGRAMS ARE PARTICULARLY EFFECTIVE BECAUSE THEY DIRECTLY REMOVE COST BARRIERS, ACCELERATE EQUIPMENT MODERNIZATION, REDUCE CUSTOMER ENERGY CONSUMPTION, AND GENERATE MEASURABLE GREENHOUSE GAS REDUCTIONS IN THE COMMUNITIES WE SERVE.
SO WHILE CUSTOMER FACING UTILITY PROGRAMS REMAIN A CORE COMPONENT OF OUR AB 32 STRATEGY, THIS FUNDING ALSO SUPPORTS BROADER CITYWIDE INVESTMENTS THAT DELIVER SIGNIFICANT GREENHOUSE GAS REDUCTION BENEFITS THROUGH PUBLIC INFRASTRUCTURE RESILIENCE AND FACILITY MODERNIZATION.
SO WE'LL GO THROUGH THE UTILITY LED PROGRAMS A LITTLE BIT LATER.
WHEN JOEY, UH, RIZZO COMES UP TO PRESENT, THERE ARE, THEY'RE LISTED ON THESE TWO CHARTS.
BUT AT THIS POINT I'D LIKE TO BRING UP, UM, OUR DEPUTY CITY MANAGER, MEREDITH REYNOLDS, WHO IS ALSO THE INTERIM INTERIM DIRECTOR OF A TECHNOLOGY INNOVATION AND DEVELOPMENT, WHO'S OUR CITY COUNTERPART ON THE ALLOCATION OF THESE FUNDS.
SO I'LL GIVE HER A CHANCE TO GO THROUGH THE CITY PROJECTS AND THEN WE'LL COME BACK AND DEEP DIVE INTO THE UTILITY PROJECTS.
THANK YOU PRESIDENT AND COMMISSION.
I APPRECIATE THE INVITATION TO BE HERE TODAY.
UM, I WANNA JUST START OFF, UH, AS WE WORK, WORK THROUGH A NUMBER OF THESE PROJECTS BY SAYING THE PROCESS IN WHICH WE GO THROUGH BETWEEN UTILITIES AND THE CITY MANAGER'S OFFICE, UH, THAT WAS CO-CREATED TOGETHER, TOGETHER TO BE ABLE TO EVALUATE A CALL FOR PROJECTS PROCESS BASED ON THE REQUIREMENTS OF AB 32.
AND AS A RESULT, WE'VE BEEN DOING THIS FOR MULTIPLE YEARS.
UH, THOSE ARE THE RECOMMENDATIONS THAT YOU SEE IN FRONT OF YOU TODAY.
SO WE ARE REALLY FOCUSED ON, UH, THE VALUE OF THE PROJECTS RELATED TO THOSE REQUIREMENTS.
[00:30:01]
OF THESE THINGS, UH, BENEFIT, UH, THE CITY BENEFIT UTILITIES AND BENEFIT THE RAY PAYERS.UM, THE FIRST ONE I'LL TALK ABOUT IS THE URBAN FOREST MASTER PLANT IMPLEMENTATION.
THIS HAS BEEN SOMETHING THAT'S BEEN FUNDED BY AB 32 FOR A NUMBER OF YEARS.
UH, AND THIS IS REALLY OUR TREE PLANTING PROGRAM.
UH, AND SINCE, UH, COMMISSIONER CORDERO ASKED A LITTLE BIT, UH, ADDITIONAL QUESTIONS ABOUT THE, UM, CALIFORNIA CLIMATE ACTION FELLOWS.
WE DO HAVE FELLOWS IN OUR OFFICE, AND THIS IS ONE OF THE THINGS THAT THEY DO WORK ON, IN ADDITION TO IN-OFFICE KIND OF POLICY DEVELOPMENT RELATED TO CLIMATE.
UH, SO THIS PLANTS A THOUSAND, UH, TREES THROUGHOUT THE CITY, UH, AND EVERY YEAR WE PLANT, UH, FAR MORE THAN THAT.
UH, AND THIS REALLY HELPS BEAUTIFY NEIGHBORHOODS REDUCE GREENHOUSE GAS EMISSIONS, UH, AND SOMETHING THAT IS LONG LASTING OVER THE, THE USEFUL LIFE OF THE YEARS OF THOSE TREES.
UH, THE OTHER THING HERE ON THIS PARTICULAR SCREEN IS A PROJECT FOR PHOTOVOLTAIC SYSTEMS, UH, FOR THE BELMONT POOL PROJECT, UH, INTENDED TO REDUCE THOSE GREENHOUSE GAS EMISSIONS FOR THE OPERATIONS OF THAT PARTICULAR FACILITY.
THERE'S ALSO A RECOMMENDATION HERE FOR, UH, THE REPLACEMENT OF ENERGY EFFICIENCY.
UH, NEW ENERGY EFFICIENCY WINDOWS AT THE, UH, BARNETT LIBRARY, UH, FOCUSED ON REDUCING THE, THE OVERALL BUILDING CON ENERGY CONSUMPTION OF THAT PARTICULAR SITE.
THERE'S A RECOMMENDATION HERE FOR EL DORADO BRANCH LIBRARY ROOF REPLACEMENT FOR A COOL, UH, ENERGY EFFICIENT ROOF, UH, INSULATION IMPROVEMENTS AND UPGRADED ENERGY EFFICIENCY LIGHTING, UH, AGAIN WITH THE PURPOSE OF REDUCING THE FACILITIES OVERALL EMISSIONS.
UH, LAST ON THIS SLIDE IS A RECOMMENDATION FOR LED STREETLIGHT REPLACEMENT, UH, REPLACEMENT OF A NUMBER OF LED UH, FIXTURES.
WITH THAT WERE AGING WITH NEWER, MORE EFFICIENT LIGHTING TECHNOLOGY, UH, TO REDUCE ENERGY USE THERE IN THAT PARTICULAR, UM, OPERATION IN PUBLIC WORKS, WE'RE ALSO PILOT PROPOSING TO PILOT, UH, PROGRAM WHERE WE CONVERT EXISTING HARDWIRE STREETLIGHTS TO SOLAR POWER FIXTURES IN TARGETED AREAS.
UM, LIKE YOU HEARD ON YOUR PREVIOUS, ONE OF THE PREVIOUS PRESENTATIONS WITH VANDALISM TO, UH, SOME OF THE LIGHTING AND THE COPPER WIRE.
UH, WE WANT TO SEE IF THERE'S A MORE EFFECTIVE WAY TO DO THIS WHILE AT THE SAME TIME REDUCING THOSE EMISSIONS.
UM, AND SO THIS IS WHAT THAT PILOT PROGRAM IS INTENDED TO TEST.
AND THEN FINALLY, UH, THE ENERGY EFFICIENCY UPGRADES.
SO THE ROOF REPLACEMENT, ENERGY EFFICIENT MATERIALS LIKE INSTALLATION AND INSTALLATION OF A HIGH, UH, EFFICIENCY HVAC SY SYSTEM AT, UM, UH, CHAVEZ PARK, JENNY OROPEZA COMMUNITY CENTER, UH, IS ALSO PROPOSED.
SO WITH THAT, I'M GONNA HAND IT OVER TO JOEY AND HE IS GONNA GO THROUGH THE UTILITIES, UH, PORTION OF THE AB 32 RECOMMENDATIONS.
UM, SO THE, UH, AB 32 PROJECTS THAT WE CURRENTLY OFFER FOR, UH, LONG BEACH UTILITIES FALL INTO A FEW DIFFERENT BUCKETS.
SO, FOR EXAMPLE, UM, THE SCREEN THAT YOU SEE UP HERE, WE HAVE MAINLY OUR DIRECT INSTALL APPLIANCES PROGRAM THAT FUNDS, UH, OR WE USE FUNDS FROM AB 32 TO SUPPORT THAT PROJECT AND PROGRAM.
AND THEN WE ALSO OFFER REBATES.
SO OUR ENERGY EFFICIENCY REBATES ARE HOW THE, THE AB 32 FUNDS ARE USED AS WELL.
THE DIFFERENCE BETWEEN THOSE TWO ARE, ONE IS AN ACTUAL DIRECT INSTALL APPLIANCE PROGRAM, AND THE OTHER IS A DO IT YOURSELF, YOU COULD SAY, APPROACH WITH CUSTOMERS THAT CAN GO ONLINE AND IDENTIFY CERTAIN DEVICES THAT THEY WOULD LIKE TO INSTALL ON THEIR PROPERTY, AND THEY WOULD APPLY FOR A REBATE AND WE WOULD PROCESS THAT FOR THEM.
UM, THE ADDITIONAL ONE THAT WE'LL TALK ABOUT IS ALSO OUR EXPANSION OF OUR CERTIFIED BLUE PROGRAM, AND HOW, UH, THE MARKETING FOR THAT PROGRAM WILL ACTUALLY SIGNIFICANTLY HELP OUR CII OPTIONS FOR THE AB 32 FUND PROJECTS.
SO, WITH THAT IN MIND, UM, JUST WANT TO KNOW, UH, UH, EVERYONE I, I KNOW LIVES IN LONG BEACH THAT'S ON THE COMMISSION.
I'M JUST WONDERING IF ANYBODY HAS APPLIED FOR A DIRECT INSTALL APPLIANCES PROGRAM? NO, THAT'S GREAT.
THAT MEANS YOU PROBABLY ALL ALREADY HAVE EFFICIENCY DEVICES.
SO THE WAY THAT THIS THIS PROGRAM WORKS RIGHT NOW IS SINGLE FAMILY AND MULTIFAMILY PROPERTIES ARE ABLE TO CONTACT OUR CONTRACTOR BY VIA PHONE.
AND OUR CONTRACTOR IS ABLE TO WALK THEM THROUGH THE STEPS OF REVIEWING THEIR PROPERTY TO SEE WHAT IS INEFFICIENT AND WHAT'S INEFFICIENT FOR A DEVICE THAT GIVES THE PRELIMINARY BASE MODEL FOR OUR CONTRACTOR TO THEN SCHEDULE A TIME FOR THEM TO GO OUT TO A PROPERTY AND THEN INSPECT ALL THE AREAS THAT CAN BE, UH, HAVE DEVICES REMOVED AND THEN NEW DEVICES INSTALLED.
IT'S USUALLY A TWO STEP PROCESS WHERE THE FIRST STEP IS OUR SMALLER DEVICES THAT WE OFFER IN THE PROGRAM.
SO WE'RE LOOKING AT, UH, SHOWER HEADS, HIGH EFFICIENCY SHOWER HEADS, THERMOSTATIC SHOWER VALVES, UM, EXCUSE ME, UH, HIGH EFFICIENCY IRRIGATION TIMERS, UH, HOT WATER PIPE WRAP AERATORS,
[00:35:01]
UM, ARE, AND TOILETS ARE THE SMALLER SIDE OF THAT FIRST, UH, UH, INITIATION FROM THE CONTRACTOR.THIS, WHILE THEY'RE STILL ON THAT, THAT FIRST PHASE.
THE SECOND PHASE IS THEY ALSO LOOK AT OUR TANKLESS WA, OR EXCUSE ME, UH, INEFFICIENT WATER HEATERS, CLOSED WASHERS, CLO, AND CLOSED DRYERS.
IF ANY OF THOSE ARE INEFFICIENT, THEN THE CONTRACTOR THEN COMES BACK AND SETTLES A SEPARATE DATE WHERE THEY'LL COME IN AND INSTALL THOSE, UH, HIGH EFFICIENCY DEVICES AND REMOVE THE INEFFICIENT DEVICES FROM THE PROPERTY.
SO IT'S ALMOST A ONE STOP SHOP TYPE PROGRAM WHERE CUSTOMERS CAN CALL IN, HAVE A PRE-INSPECTION, HAVE THE, UH, DEVICES IDENTIFIED AND THEN INSTALLED, AND IT'S ZERO COSTS TO THEM.
SO, UM, WITH THAT, UH, LONG BEACH UTILITIES HAS BEEN ABLE TO RESERVE OVER $4.4 MILLION OF CAP AND INVEST PROGRAM FUNDS TO SUPPORT THE DIA PROGRAM.
FROM OCTOBER 1ST, 2024 TO APRIL 30TH, 2026, LONG BEACH UTILITIES HAS SPENT OVER HALF OF OUR PROGRAM RESERVE.
THE PROGRAM CONTRACTOR HAS COMPLETED OVER 1,200 UNIQUE JOB ORDER ORDERS TO CUSTOMER PROPERTIES.
SO THAT'S 1200 DIFFERENT CUSTOMERS THAT HAVE TAKEN ADVANTAGE OF THIS PROGRAM.
OF THOSE 1200, WE HAVE INSTALLED OVER 3,600 EFFICIENT NATURAL GAS AND WATER SAVINGS DEVICES.
THOSE DEVICE INSTALLS, UH, HAVE LED TO AN ANNUAL SAVINGS OF ABOUT 32,500 THERMS, UH, USING A ROUGH EQUIVALENCY OF ABOUT A 10 YEAR, 10 YEARS WORTH OF LIFE EXPECTANCY FOR THOSE INSTALLED DEVICES.
THAT'S ROUGHLY EQUAL TO ABOUT 4,000, UH, 4,000 CARS ANNUAL GAS EMISSIONS BEING REMOVED FROM THE ROAD.
SO THE EFFICIENCY FACTORS ARE VERY SUPPORTIVE FOR THIS PROGRAM, AND WE'RE HAPPY TO SEE THE PROGRAM SUCCESS INTO 2026 AND HOPEFULLY FURTHER ON TO 2027.
SO YOU MAY OR MAY NOT KNOW OF AB 1550 AND SB 5 35, WHAT THESE ASSEMBLY BILLS AND SENATE BILLS PRIORITIZE IS HOW THE MONEY IS SPENT WITHIN THE CITY.
UH, WE ARE REQUIRED TO PRIORITIZE DISADVANTAGED COMMUNITY AREAS AND LOW INCOME COMMUNITY AREAS BASED OFF OF THESE TWO ASSEMBLY BILLS.
SO THE WAY THAT WE MARKET OUR PROGRAM IS IDENTIFYING THOSE AREAS FIRST AND THEN, UH, ALLOWING THOSE PEOPLE TO APPLY AS A PRIORITY AND THEN MOVING OUTSIDE OF THOSE ZONES TO AREAS THAT ARE OUTSIDE OF THE BLUE AND DARKER BLUE AREAS.
THAT 35%, UM, THAT WE'RE LOOKING TO PRIORITIZE IS ONE OPTION.
BUT THIS PROGRAM IS OFFERED TO ALL OF LONG BEACH UTILITIES CUSTOMERS, AND WE FIND THAT AS A STRONG BENEFIT TO HAVE A UNIFIED PROGRAM THAT BUILDS RAPPORT FOR THE COMMUNITY.
SO SOME OF THE BIG THINGS THAT HAVE HAPPENED IN OUR 2026 VERSION OF THE PROGRAM IS THAT WE STARTED TO INSTALL TANKLESS WATER HEATERS.
UM, YOU'LL SEE THE NEXT, ON THE NEXT SLIDE OF THE INNER ENERGY EFFICIENCY REBATE PROGRAM.
TANKLESS WATER HEATERS ARE PROBABLY ONE OF THE MOST POPULAR DEVICES THAT ARE BEING INSTALLED CURRENTLY.
AND THEY ALSO PROVIDE THE HIGHEST AMOUNT OF EFFICIENCY FACTOR SAVINGS FROM A THERMALS COUNT ONCE THEY'RE INSTALLED.
SO THE CONTRACTOR IS ALSO GONNA BE INCLUDING, UH, TANKLESS WATER HEATERS INTO MULTIFAMILY PROPERTIES IN JULY.
WHAT THAT WILL LOOK LIKE IS IT'LL WE'LL START TO, THE CONTRACTOR WILL BEGIN TO REMOVE LARGE BOILERS FROM MULTIFAMILY PROPERTIES AND THEN SAVING SPACE AND SPACE, AND THEN ALSO INSTALLING THE, UH, TANKLESS WATER HEATERS FOR THESE UNITS AS LIKE A RACK TYPE.
SO THEY'LL HAVE POTENTIALLY 5, 6, 7 UNITS INSTALLED IN THE BUILDING, DEPENDING ON THE SIZE AND HOW MANY UNITS THERE ARE.
AS WE'RE EXPANDING IN 2026, WE'RE BE RELEASING AN RFP FOR OUR COMMERCIAL INDUSTRIAL AND INSTITUTIONAL PROPERTY DIRECT INSTALL PROGRAM, AS WELL AS, UH, ENTERING THE OPPORTUNITY FOR MASTER METER PROPERTIES AND MANUFACTURED HOMES WITHIN THE CITY OF LONG BEACH.
AS YOU KNOW, THE, THE EXPANSION PROCESS DOES TAKES A LITTLE BIT OF TIME.
WE'VE TRIED TO, UH, TOUCH EVERY SINGLE CUSTOMER SECTOR WITH THIS PROGRAM, AND WE'VE ONLY BEEN ABLE TO DO THAT REALLY BY HAVING CONVERSATIONS WITH THOSE THAT HAVE ALREADY GONE THROUGH THE PROCESS.
SO SPEAKING WITH A LARGE SOL GAS WHOLESALER AS WELL AS THEIR CONTRACTORS UNDERSTAND THE BEST WAY TO APPROACH THESE PROGRAMS HAS BEEN REALLY HELPFUL.
THE OTHER WAY THAT WE'RE SPINNING OUR AB 32 FUNDS RIGHT NOW IS THROUGH OUR ENERGY EFFICIENCY REBATE PROGRAM.
UM, AS YOU CAN SEE, OUR TANKLESS WATER HEATERS HERE ARE STILL THE MOST POPULAR DEVICE THAT WE'RE OFFERING WITHIN THIS PROGRAM.
EVEN THOUGH WE'RE ON THE DIRECT INSTALL APPLIANCES PROGRAM, WE'RE OFFERING IT FOR THE COMPLETE FREE.
SOME OF THE OTHER THINGS THAT WE'RE OFFERING IN THIS PROGRAM MAY INCLUDE GAS POOL HEATERS, NATURAL GAS FIREPLACE INSERTS, UM, AS WELL AS GAS FURNACES AND GAS DRYERS.
[00:40:03]
WE'RE ALSO LOOKING TO EXPAND THIS PROGRAM, UM, IN THE COMING YEAR TO OUR SIGNAL HILL, UH, PROPERTY.WE'VE ACTUALLY HAD, UH, PERMITTING PROJECTS AND PROCESSES WORKED OUT WITH SIGNAL HILL.
WE'VE GONE THROUGH, I THINK, TWO REBATES SO FAR WITH THE CITY OF SIGNAL HILL.
SO ONCE AGAIN, UH, SIGNAL TO SIGNAL HILL IS PAYING FOR NATURAL GAS FROM LONG BEACH UTILITIES.
SO WE ARE HAPPY TO PROVIDE THIS PROGRAM TO THEM AS WELL.
SO FINALLY, TO KIND OF TIE IT ALL TOGETHER FOR AN, AN OLDER PROGRAM THAT'S BEEN INACTIVE IN THE CITY IS OUR CERTIFIED BLUE PROGRAM, PREVIOUSLY KNOWN AS CBR CERTIFIED BLUE RESTAURANT.
UM, WE'VE TAKEN OUT THE RESTAURANT OPTION BECAUSE WE BELIEVE THAT THIS PROGRAM CAN SERVE MUCH MORE THAN JUST RESTAURANTS.
THE, THE DIRECT INSTALL APPLIANCE PROGRAM, AS WELL AS THE EER PRE ERP PROGRAM.
WE'LL BE ABLE TO GROUP THOSE TWO PROGRAMS WITH THE CURRENT PROCESS FOR OUR CERTIFIED BLUE PROGRAM.
RIGHT NOW WE HAVE ABOUT 70 RESTAURANTS IN OUR CERTIFIED BLUE PROGRAM, AND THEY'RE WILL SOON BE ABLE TO APPLY FOR THINGS LIKE STOVES AND HOT WATER HEATERS, UH, SO THAT THEY CAN INCREASE THEIR EFFICIENCIES.
WITH THAT, I'M GOING PASS IT ALRIGHT, BEFORE WE, UH, BECAUSE THESE ARE THE ACTUAL LINE ITEM EXPENDITURES FOR THE FISCAL YEAR 27 EARMARKS.
AND I DO WANNA REITERATE WHAT MEREDITH, UH, COMMENTED ON EARLIER.
IT IS A COLLABORATIVE PROCESS BETWEEN, UH, UTILITIES AND THE CITY IN ORDER TO COME UP WITH THESE, UH, RECOMMENDATIONS FOR EXPENDITURE OF OUR FISCAL YEAR 27 FUNDS.
UM, WE ALL WORK TOGETHER TO THE SAME GOAL AND IT'S BEEN A PLEASURE WORKING WITH OUR CITY COUNTERPARTS TO ACHIEVE THIS GOAL.
SO FOR THE UTILITY SIDE, WHAT WAS AGREED UPON ARE THE, UH, THE PROGRAMS THAT JOEY JUST SPOKE OF, BUT I WANNA PUT THE DOLLARS TO IT.
SO FOR THE DIRECT INSTALL, SINGLE FAMILY DIRECT INSTALL APPLIANCES, $1.8 MILLION, AND IT'S WORTHWHILE TO JUST READ THE DESCRIPTION HERE BECAUSE THEY REALLY DO HIT THE, THE GROUND DO HIT OUR RATE PAIRS AS INTENDED BY THE PROGRAM.
SO LARGE SCALE SINGLE FAMILY RETROFIT PROGRAM, REPLACING INEFFICIENT APPLIANCES WITH HIGH EFFICIENCY EQUIPMENT TO REDUCE RESIDENTIAL ENERGY USE AND EMISSIONS.
THE OTHER THREE BEFORE THAT, UM, THE DIRECT INSTALL FOR COMMERCIAL INDUSTRIAL 200,000 FULL SERVICE RETROFIT, REPLACING INEFFICIENT DEVICES, COMMERCIAL AND INDUSTRIAL CUSTOMERS.
THE MANUFACTURED HOME DIRECT INSTALL 300,000, A RETROFIT FOR MANUFACTURED HOME, REPLACING INEFFICIENT WATER AND GAS DEVICES WITH MORE EFFICIENT ONES.
AND THEN THE MULTIFAMILY DIRECT INSTALL FOR 500,000.
UH, MULTIFAMILY RE UH, RETROFIT PROGRAM, IMPROVING EFFICIENCY BY REPLACING OUTDATED APPLIANCES.
SO TOGETHER OF, UH, THE MONIES THAT WERE RECEIVED, 3.8 MILLION ARE DIRECTED TO, UM, DIRECT UTILITY CUSTOMERS.
SO STAFF RECOMMENDS THAT THE BOARD AUTHORIZED THE GENERAL MANAGER TO RELEASE FISCAL YEAR 26, CAPTAIN INVEST REVENUES FOR QUALIFYING FISCAL YEAR 27 GREENHOUSE GAS REDUCTION PROJECTS CONSISTENT WITH THE REQUIREMENTS OF AB 32.
THIS AUTHORIZATION WILL ALLOW LONG BEACH UTILITIES AND OUR CITY PARTNERS TO CONTINUE LEVERAGING THESE FUNDS TO REDUCE EMISSIONS, IMPROVE INFRASTRUCTURE, AND DELIVER TANGIBLE BENEFITS TO CUSTOMERS AND THE COMMUNITY.
WITH THAT CLOSE MY REPORT, AND I'M HAPPY TO ANSWER ANY QUESTIONS.
THANK YOU TONY AND MEREDITH AND JOEY.
I'M SURE THERE'S PLENTY OF COMMENTS.
UH, IS THERE ANY PUBLIC COMMENTS? UH, ARE THERE ANY COMMISSIONER COMMENTS? YES.
UM, I JUST WANNA THANK EACH OF US STAFF FOR A GREAT PRESENTATION.
UH, I DID HAVE A QUESTION RE RELATED TO, UH, THE DIRECT INSTALL.
OBVIOUSLY THERE'S GONNA BE SOME TREMENDOUS BENEFITS FOR THE COMMUNITY, PARTICULARLY LOW INCOME AND DISADVANTAGED COMMUNITIES, UM, THAT THIS, UH, AB 32 WHEN CAPTAIN VEST WAS, I THINK DESIGNED TO SERVE.
UM, THE QUESTION IS, UH, THIS NEXT YEAR'S ALLOCATION, HOW MUCH MORE, WHAT IS THE DIFFERENCE OVER WHAT WE'VE DONE IN THE PAST? RIGHT NOW WE HAVE $4.4 MILLION WAS IN THE PAST TWO YEARS THAT WERE ALLOCATED FOR OUR DIRECT INSTALL APPLIANCE PROGRAM FOR ROUGHLY ABOUT A MILLION DOLLARS
[00:45:01]
LEFT OF THAT FUNDING.SO THIS ADDITIONAL FUND OF THE 1.8 FOR THE SINGLE FAMILY, FOR EXAMPLE, UH, WE'LL MOST LIKELY COME TO A, UH, COMPLETE USE OF THAT, OF THAT, UH, MONIES OR BE VERY CLOSE IN THE HOPES OF NEXT YEAR, WE'LL BE ABLE TO REAPPLY AND HAVE A LITTLE BIT OF FUNDING LEFT OVER SO THERE ISN'T A GAP OF FUNDING SO THAT THERE ISN'T A WAIT LIST FOR CUSTOMERS.
AND I GUESS, UH, THE FOLLOW UP TO THAT IS HOW ARE WE KIND OF COMMUNICATING THESE PROGRAMS, THESE GREAT PROGRAMS THAT ARE AVAILABLE TO, TO OUR PUBLIC? ABSOLUTELY.
SO WE WORK WITH OUR PUBLIC AFFAIRS TEAM.
UH, THEY ACTUALLY HAVE ADS THAT ARE SET IN CLASSIFIED AS WELL AS ADS THAT ARE ON OUR WEBSITE FOR OUR BILLING PURPOSES.
IF YOU WERE TO PAY YOUR BILL, YOU'LL SEE A LIST OF ALL THE PROGRAMS THAT ARE OPTIONS.
UM, WE ALSO HAVE, UH, VERTEX ONE OR WATER SMART, WHICH IS ONE OF OUR LEADING E EMAIL MARKETING OPPORTUNITIES THAT WE HOST.
UM, WE'RE ACTUALLY AT A REALLY GREAT RATE WITH THAT VERTEX ONE, UH, EMAILING OPTION THAT IT PROVIDES.
UH, WE HAVE ABOUT A 60% OPEN RATE WITH THAT EMAIL AND ABOUT A 6% CLICK RATE THROUGH CUSTOMERS.
SO OUR, OUR RAPPORT THAT'S BEING BUILT FROM THAT IS, UH, VERY STRONG AND IT SUPPORTS THIS PROGRAM SIGNIFICANTLY.
AND I DON'T EXPECT THAT THERE ARE TOO MANY KIND OF REPEAT CUSTOMERS WHO ARE GOING TO THIS PROGRAM.
BUT, UH, I I DO FROM THE IDEA OF REPEAT, NO, THE, THE CONTRACTOR VETS EVERY SINGLE PROJECT THAT'S BEEN INSTALLED.
SO THERE IS ANY TYPE OF DOUBLE-DIPPING SCENARIO THAT'S, THAT WOULD HAPPEN.
THERE'S THE POSSIBILITY THAT SOMEONE COULD REAPPLY FOR THEIR PROPERTY, BUT NOT FOR THE SAME, SAME DEVICE.
UM, I HAVE A, A FEW QUESTIONS, SO PLEASE BEAR WITH ME.
BUT THE, THE FIRST ONE IS ON THE REGULATORY USE.
THIS HAS BEEN REAUTHORIZED RECENTLY AND THE WAY I READ THE COUNCIL LETTER, THE, UM, THE RULES, UH, OF WHAT PROJECTS QUALIFY ARE CHANGING.
CAN YOU TALK TO ME A LITTLE BIT ABOUT THAT AND MAYBE A LITTLE BIT MORE ON HOW WE SELECT THE PROJECTS? MY MATH WAS A LITTLE DIFFERENT.
I THINK OF THE 8.9, THE RATE PAYERS ARE ONLY GETTING LIKE 2.8 AND THE CITY IS 6.1 OF THE PROJECTS ON THE LIST HERE.
IS THAT RIGHT? CITY FACILITIES 2.8 CAN READ MAYBE, MAYBE, MAYBE IT'S NOT, MAYBE IT'S 3.8, BUT 3.8, YES.
AND THEN THE OTHER IS ALL CITY PROJECTS.
RIGHT? AND, AND THEY MAY QUALIFY UNDER THE CURRENT RULES.
I, I, THAT'S A QUESTION I'LL ASK FOR THE CITY ATTORNEY, BUT IF YOU COULD WALK ME THROUGH WHAT THE NEW RULES ARE.
YEAH, SO A COUPLE COMPONENTS TO THAT.
THE PROGRAM IS BEING PROPOSED BY CARB TO CHANGE AND ELECTRIFICATION IS THE NAME OF THE GAME.
AND SO, UH, GAS UTILITIES SUCH AS OURSELVES AND OTHERS, BOTH MUNICIPAL AND PUBLICLY OWNED, UH, ARE RESPONDING TO THIS 'CAUSE ELECTRIFICATION, UH, COMES WITH COST.
THE, THE INFRASTRUCTURE IS NOT QUITE THERE YET.
UH, ELECTRIC APPLIANCES REQUIRE A WHOLE HOST OF PANEL UPGRADES AND WIRING UPGRADES, AND THE EFFICACY OF THE PROGRAM IN OUR ESTIMATION BECOMES DIMINISHED.
WE CAN SEE ALL THE REDUCTION EFFORTS THAT WE CAN ACCOMPLISH THROUGH MORE NATURAL GAS APPLIANCES.
WITH A BUILT OUT CITY LIKE THIS, WITH LOTS OF OLDER INFRASTRUCTURE, THIS BECOMES A SERIOUS CONCERN.
SO ONGOING NOW ARE NUMBER OF HEARINGS AND PUBLIC COMMENT PERIODS TO CHALLENGE CARBS, UH, PROPOSAL TO REALLY RESTRICT THESE AB 32 FUNDS FOR ELECTRIFICATION TYPE USES.
SO IF I COULD JUST ENTER, IF THEIR CAR, NEW CARB RULE COMES THROUGH, THE DIRECT INSTALL FOR GAS APPLIANCES WOULDN'T BE AN ALLOWED PROJECT.
AND SO WHO, LIKE, WHEN WE SELECT THESE PROJECTS AND WE APPROVE THIS TODAY, IS THERE ANYBODY THAT REVIEWS THAT AT CARB THAT SAYS, HEY, WE DON'T THINK THIS PROJECT MEETS THE CRITERIA FOR AB 32 CAP AND INVEST? YES, SIR.
SO, UM, WE HAVE TO REPORT TO CARB EVERY YEAR.
DENNIS BURKE BEFORE YOU IS THE ONE WHO COMPLETES THAT REPORT OF THE EXPENDITURES.
SO WE HAVE THESE ALLOCATIONS, WE TAKE IT INTERNALLY THROUGH A REVIEW COMMITTEE.
IT'S TREATED KIND OF LIKE A GRANT APPLICATION PROJECT.
FOLKS FROM ACROSS CITY ACROSS DEPARTMENTS BID ON, UM, AWARDS FOR A PORTION OF THESE FUNDS.
WE HAVE AN EVALUATION, UH, PANEL WHICH REVIEWS THEM FOR CONSISTENCY WITH THE INTENT OF, UH, AB 32 LEGISLATION AND FOR EFFICACY IN TERMS OF BANG FOR THE BUCK IN TERMS OF DOLLARS SPENT.
SO, UM, ONCE THOSE FUNDS ARE EXPENDED, WE HAVE TO REPORT ON NOT ONLY THE AMOUNT, BUT THE EFFICACY, EFFICACY
[00:50:01]
OF IT, MEANING HOW MUCH GREENHOUSE GAS REDUCTIONS IN TERMS OF METRIC TONS WERE ACCOMPLISHED.THAT IS WHAT IS REVIEWED BY CARB TO DATE, THEY HAVE NOT CHALLENGED ANY OF OUR SUBMITTALS.
AND I GUESS FINAL QUESTION FOR THE CITY ATTORNEY, YOU REVIEW THE, THEY ALSO REVIEW THE PROJECTS AND YOU BELIEVE THEY MEET ALL THE REQUIREMENTS? YES.
SECRETARY PARKIN, UH, CITY ATTORNEY'S OFFICE WORKS VERY CLOSELY WITH STAFF TO EVALUATE AND REVIEW, UH, COMPLIANCY IN THAT, UH, THESE PROJECTS SAT SATISFY THE CARB AND THE AX REQUIREMENTS.
UM, THESE ARE, UH, ENERGY, UH, EFFICIENCY MEASURES FOR QUALIFIED, UH, PROJECTS.
SO CERTAINLY UNDER THE CURRENT, UH, CARB UH, REGULATIONS IN THE CURRENT ACT, UH, THEY CERTAINLY MEET THE, UH, STANDARD FOR USE OF THESE FUNDS.
SO, UM, THERE'S NOT A LEGAL CONCERN HERE.
AND, AND MY FINAL THING IS I JUST, I THINK THE DIRECT INSTALL AND THE OTHER PROJECTS THAT YOU'RE RUNNING ARE GREAT.
I, I HOPE THEY GET MORE ADDITIONAL FUNDING IN THE FUTURE YEARS COMING FORWARD.
UH, EVEN THE LEGISLATURE IS CONCERNED WITH THE AGGRESSIVENESS OF CARBS PROPOSED REGULATIONS.
AND SO, UM, A RECENT, UH, RULING WAS DELAYED, I THINK LAST WEEK.
DIANA CAN CORRECT ME IF I'M WRONG, BUT THERE WAS A HEARING WHICH THE LEGISLATORS BROUGHT CARB STAFF BEFORE THEM TO REALLY QUESTION, UM, THE AGGRESSIVENESS OF THE ELECTRIFICATION PATH.
UH, NOTING THAT THE AFFORDABILITY AROUND AMONG RATE PAYERS IS, IS A KEY CONCERN.
ANY OTHER COMMISSIONER COMMENTS? YES, YES.
THIS IS ABOUT THE, THE DIRECT INSTALL SCIENCE PROGRAM.
AND WE HAD A DISCUSSION AT METROPOLITAN, AT METROPOLITAN, UH, ABOUT THIS, UH, PROGRAM AND THE ALLOCATIONS.
AND IT, IT APPEARS THAT, UM, THERE'S NOT A LOT OF CITIES THAT ARE AS AGGRESSIVE AS WE ARE ON THE DIRECT INSTALL.
IS THAT CORRECT? I WOULD ASSUME IT TAKES A LOT OF STAFF TIME FROM WHAT I'VE HEARD, JOEY, FROM WHAT YOU'VE SAID, AND YOU'VE DONE SUCH A GOOD JOB.
IT DOES TAKE A LOT OF STAFF TIME AND THANK YOU JOCELYN BANIS FOR BEING HERE.
SHE ACTUALLY RUNS THIS PROGRAM OKAY.
BUT, UH, A LOT OF CITIES DO NOT RUN A DIRECT INSTALLING PROGRAM BECAUSE OF THE COST.
BUT THERE ARE ENTITIES THAT, UH, PROVIDE, UH, I GUESS YOU CAN SAY AN UMBRELLA APPROACH FOR DIFFERENT CITIES IN DIFFERENT UTILITIES.
UM, SOCAL GAS BEING ONE OF THEM ACTUALLY PARTNERS WITH METROPOLITAN TO OFFER DIRECT INSTALLS AS WELL AS, UH, L-A-D-W-P.
THEY ARE, THEY DO NOT USE AB 32 FUNDS TO RUN THESE PROGRAMS. THEY DON'T.
UM, HAVE YOU GOTTEN ANY OTHER CALLS FROM CITIES ON OUR DIRECT INSTALL ON HOW YOU COULD SUPPORT OR HELP THEM GET 'EM ESTABLISHED? YES.
WE ACTUALLY, UH, DID A LARGE PROJECT IN 2023 WITH METROPOLITAN, LOOKING AT THE EFFICIENCY FACTORS IN THE COST SAVINGS FROM THE PROJECT.
UH, WE PRESENTED THAT AT OUR WATER SMART INNOVATIONS CONFERENCE, AND WE HAD A VERY STRONG RETURN OF CALLS TO UNDERSTAND HOW THE PROGRAM WORKS AND HELPING PEOPLE DESIGN RFPS AND THINGS LIKE THAT TO PUSH OUT FOR CONTRACTORS.
WE HAD A, AN EXTENSIVE DISCUSSION AT ONE OF OUR MEETINGS ABOUT, UM, THE OPPORTUNITY FOR DISADVANTAGED COMMUNITIES, AND THEY ALWAYS BRING UP COMPTON AND SAN FERNANDO, AND THEY DON'T EVER SAY ANYTHING ABOUT LONG BEACH.
AND WHEN YOU LOOK AT THIS LITTLE MAP, YOU HAVE A SIZABLE COMMUNITY THAT, UM, WE'RE DOING A GOOD JOB, BUT WE COULD ALWAYS USE MORE AS, UH, SENATOR PARKIN SAID.
UM, SO AGAIN, THANK YOU FOR THAT.
UM, MY NEXT QUESTION IS KIND OF GOING TO WHAT COMMISSIONER PARKIN SAID WHEN I LOOKED AT THE CHART.
AND THANK YOU FOR THE REPRESENTATIVE FROM THE CITY MANAGER'S OFFICE FOR BEING HERE.
UM, I SAW THAT AND I THOUGHT THE SAME THING.
I KEPT SEEING THE LEAD AGENCY AND IT KEPT GOING TO, YOU KNOW, PUBLIC WORK, CITY MANAGER.
UM, AND SO I KIND OF WENT DOWN AND LOOKED AT HOW MUCH WE SPENT AND WHERE, UM, AND I HAD TO REMIND MYSELF THAT, UM, AND I KNEW ABOUT THE CARB RESTRICTION, POSSIBLE CARB RESTRICTIONS, BUT HAD TO REMIND MYSELF THAT WE, LIKE AT METROPOLITAN WE TALK ABOUT REGIONAL BENEFIT.
AND I KNOW HERE WE'RE TALKING ABOUT A CITY BENEFIT AS WELL.
UM, BUT HOPEFULLY WE'LL GET MORE DIRECT, UH, REBATES AND, AND UH, SORT OF, UM, BENEFITS FOR OUR CUSTOMERS AS WELL.
BUT I APPRECIATE THE PARTNERSHIP WITH THE CITY MANAGER'S OFFICE AND THE OTHER DEPARTMENTS.
ANY OTHER COMMISSIONER? ALRIGHT, SO WE'VE GOT A MOTION ON THIS ONE.
SO COMMISSIONER CORDERO STRATEGIC CLARIFICATION HERE IS THAT UNDER PROP TWO 18, WE ARE NOT ALLOWED TO DO DIRECT INSTALL BECAUSE THE COST AND THE REVENUE SOURCES WOULD BE IN DIRECT CONFLICT WITH THE PRINCIPLES OF PROP TWO 18.
THE CROSS, THE, THE CROSS-SUBSIDIZATION OF CUSTOMER CLASSES WOULD TECHNICALLY NOT BE ALLOWED.
THE STRATEGIC GOAL HERE IS THAT HOT WATER IS A CONSUMER OF NATURAL GAS, RIGHT? INDEED.
AND THAT PROVIDES A JUNCTURE, UH, WHICH IS INSIGHTFUL TO THE COMMENT THAT YOU MADE ABOUT THE DISCUSSION AT METROPOLITAN
[00:55:01]
IS THAT IT'S OFTEN A QUESTION OF AT ITS FACE, THE ABILITY TO DO SOME OF THESE PROGRAMS FOR WATER REPRESENT AN OBSTACLE.I THINK TO THE COMPLIMENT OF ALL STAFF HERE AT LONG BEACH, YOU FIND YOURSELF WITH A STAFF THAT ONCE FINDING AN OBSTACLE, WE SEE THE CHALLENGE AS AN OPPORTUNITY AND THAT THEY WORK TIRELESSLY TO OVERCOME THAT CHALLENGE.
THAT THAT IS A TESTAMENT TO SO MANY PEOPLE HERE THAT ARE DOING GREAT WORK IN THIS AREA.
THANK YOU FOR THAT CLARIFICATION.
UH, WE'VE GOT A MOTION AND A SECOND.
ALL THOSE IN FAVOR, PLEASE SAY AYE.
UH, THANK YOU TONY AND JOEY AND MEREDITH.
[12. 26-55122 Recommendation to adopt Resolution No. UT-1557 authorizing the General Manager to execute a contract, and any necessary documents, including any amendments, with VertexOne LLC, for the purchase of a Water Efficiency Outreach and Customer Portal Solution, in an annual amount not to exceed $160,000, for a period of one year, with the option to renew for four additional one-year periods, at the discretion of the General Manager. Suggested Action: Approve recommendation. ]
RESOLUTION UT 1 5 57 AUTHORIZING, UH, THE GENERAL MANAGER TO EXECUTE, UH, A CONTRACT AND ANY NECESSARY DOCUMENTS, INCLUDING ANY AMENDMENTS WITH VER VERTEX ONE LLC, UH, FOR THE PURCHASE OF A WATER EFFICIENCY OUTREACH AND CUSTOMER PORTAL SOLUTION.UH, THIS ITEM IS BEFORE US WITH STAFF RECOMMENDATION IN THE INTEREST OF TIME, AND UNLESS THERE'S AN OBJECTION FROM THE COMMISSION CHAIR, WOULD ENTERTAIN PROCEEDING TO APPROVE THE STAFF RECOMMENDATION WITHOUT A STAFF PRESENTATION.
UH, ARE THERE ANY PUBLIC COMMENTS? UH, THIS IS A RESOLUTION VOTE.
SO DANA, MAY WE PLEASE HAVE A ROLL CALL? YES.
COMMISSIONER AUSTIN AND PRESIDENT SCOTT.
UH, AGENDA ITEM ITEM NUMBER 13.
[13. 26-55123 Recommendation to receive and file the Long Beach Public Utilities Department Fiscal Year 2027 Budget Planning Session 1 Presentation. Suggested Action: Approve recommendation. ]
LONG BEACH PUBLIC UTILITIES DEPARTMENT FISCAL YEAR 2027.BUDGET PLANNING SESSION ONE PRESENTATION.
UH, MAY I PLEASE HAVE A MOTION MOVE? THANK YOU.
TODAY IS OUR FIRST OF THREE BUDGET PLANNING SESSIONS TO REVIEW THE FISCAL YEAR 27 PROPOSED BUDGETS FOR THE WATER, GAS, AND SEWER FUNDS, ALONG WITH EACH FUND'S PROJECTED RESERVES AND RATES.
SO FOLLOWING TODAY, WE WILL CONTINUE TO REVIEW ON MAY 28TH WITH APPROVAL SCHEDULED ON JUNE 4TH.
SO A FEW BUDGETARY HIGHLIGHTS.
IN FISCAL YEAR 27, THE BUDGET CONTINUES TO REFLECT, STRENGTHEN RECRUITMENT AND RETENTION EFFORTS, INVESTMENT IN CRITICAL INFRASTRUCTURE AND STRATEGIC INITIATIVES TO MITIGATE INFLATIONARY PRESSURES AND CLIMATE CHANGE IMPACTS.
IN FISCAL YEAR 27, THE DEPARTMENT CONTINUES TO EXPERIENCE VARIOUS CHALLENGES IMPACTING BUDGET.
THIS INCLUDES CONSERVATION AND DEMAND REDUCTION, LABOR AND COMMODITY COST INCREASES, SHIFTING CAPITAL PROJECT SCHEDULES AND IMPACTS OF CLIMATE CHANGE.
TO ADDRESS THESE CHALLENGES, THERE ARE VARIOUS STRATEGIC INVESTMENTS AND EFFICIENCIES CURRENTLY UNDER REVIEW BY STAFF.
THESE EFFICIENCIES WILL BE FOR CONSIDERATION AS PART OF FUTURE BUDGET PROCESSES.
IMPLEMENTATION TIMING ALONG WITH FISCAL IMPACT IS PENDING FOR THEIR ASSESSMENT AND THUS NOT INCLUDED IN THE FISCAL YEAR 27 BUDGET.
ADDITIONAL INFORMATION WILL BE BROUGHT BACK TO THE COMMISSION, UH, ON MAY 28TH, AND WILL INCLUDE EXPANDING IN-HOUSE CAPABILITIES AND EVALUATING CONTRACTOR COST AS WELL AS REVIEWING COST RECOVERY AND ALLOCATION EFFORTS.
SO WHILE THE DEPARTMENT HAS VARIOUS EFFICIENCIES UNDER REVIEW AND NOT INCLUDED IN THE BUDGET AT THIS TIME, THE FISCAL YEAR 27 BUDGET DOES INCLUDE NOTABLE SAVINGS, WHICH WERE IDENTIFIED USING A ZERO BASE BUDGETING APPROACH.
ALTHOUGH THE BUDGETS FOR GAS, WATER, AND SEWER FUNDS DID INCREASE FROM THE PRIOR YEAR, THERE WERE LINE ITEM REDUCTIONS TOTALING CLOSE TO $4 MILLION ACROSS ALL THREE FUNDS.
THESE REDUCTIONS INCLUDE LINE ITEMS LIKE EQUIPMENT SUPPLIES, TEMPORARY STAFFING, AND SOFTWARE COSTS.
THERE ARE NO SERVICE IMPACTS ASSOCIATED WITH THE REDUCTIONS AS THE ADJUSTMENTS ALIGNED TO CURRENT AS WELL AS ANTICIPATED OPERATING
[01:00:01]
NEEDS.AND WITH THAT, I WILL GO AHEAD AND TURN IT OVER TO DANIEL, WHO WILL REVIEW FY 27 PROJECTIONS AND RATE ADJUSTMENTS.
UH, SO STARTING OFF WITH THE WATER FUND, IF YOU RECALL, WE CAME, UH, LAST OR APRIL 16TH, UH, TO DO THE Q2 FINANCIAL UPDATE.
AND WITH THAT WE PROVIDED YOU THE FIRST TWO COLUMNS THAT YOU SEE HERE, WHICH IS THE FY 26 BUDGET, AS WELL AS THE FY 26 ETC.
UH, SO WHAT WE HAVE DONE HERE IS WE'VE ADDED A THIRD COLUMN, UH, THE FY 27 PROPOSED BUDGET, UH, WHICH INCLUDES THE 6% RATE INCREASE AS OUR BASELINE, UH, ASSUMPTION.
AND WITH THAT WE ARE ABLE TO, I'M SORRY, UH, FOR THE TOTAL EXPENDITURES WE HAVE 198, UH, MILLION.
AND FOR THE TOTAL REVENUES WE HAVE 199 MILLION, UH, WHICH LEADS US WITH A FUND BALANCE GAIN OF $780,000.
STARTING OFF WITH THE SALES AS MENTIONED, UH, THE PORTABLE WATER SALES AND THE RECLAIMED WATER SALES, UH, REFLECTS THE 6% RATE INCREASE.
AND THEN FOR THE MISCELLANEOUS REVENUE, UH, WE HAVE A DECREASE IN THE LB SEVEN A AS WELL AS SOME INTEREST REVENUE ADJUSTMENTS SHIFTING OVER TO THE DEBT PROCEEDS.
UM, THE PROPOSED INCREASES ARE DRIVEN BY AN INCREASE IN THE CIP ACTIVITY, AND THAT GOES THE SAME FOR THE REIMBURSABLE CIP AS WELL.
SO FOR THE DEBT PROCEEDS AND THE REIMBURSABLE CIP, IT'S MATCHING THE INCREASE ACTIVITY THAT YOU'RE GONNA SEE ON THE EXPENSE SLIDE.
AND THEN FOR THE 18 MILLION, UH, WE PLAN TO UTILIZE THE REMAINING 9 MILLION, UH, FOR OUR CURRENT 2024 BONDS, AND THEN ISSUE, UH, AN ADDITIONAL 9 MILLION, UH, FOR THE LINE OF CREDIT.
SWITCHING OVER TO THE EXPENDITURES, UH, WE HAVE A 6% INCREASE IN THE SALARIES, UH, WAGES AND BENEFITS.
AGAIN, THE, UH, CIP IS THE MAIN DRIVER OF THE INCREASE ON THE EXPENSE SIDE.
UH, AND THIS HAS AGAIN, UH, CORRESPONDING INCREASES IN THE DEBT PROCEEDS AND THE REIMBURSABLE REVENUE.
UH, AND THEN TO TOUCH ON ONE OF THE PROJECTS HERE, WE HAVE THE HANES PLAN PROJECT, UH, WHICH IS PART OF THE REIMBURSABLE PORTION AS WELL.
CHANGING OVER TO THE OPERATIONS AND MAINTENANCE.
UH, O AND M HAS REMAINED RELATIVELY FLAT, UH, WITH THE EXCEPTION OF SOME NEW VEHICLE PURCHASES.
UH, THE PUMPED AND PURCHASE IS, UH, A GOOD STORY HERE.
WE'RE UTILIZING OUR LOWER COST PUMPED WATER, UH, WHICH HELPS KEEP THE COST RELATIVELY FLAT FROM PREVIOUS YEARS.
SO CHANGING OUR MIX AND DEPENDING MORE HEAVILY ON OUR CHEAPER OR LESS EXPENSIVE GROUNDWATER.
UH, THE DEBT SERVICE ADJUSTMENT, UH, IS RELATED TO THE CURRENT BORROWING NEEDS, SO SLIGHTLY REDUCED.
AND THEN WE HAVE THE GENERAL FUND TRANSFER, WHICH IS REMAINING FLAT.
NOW WHAT DOES THAT MEAN IN TERMS OF FUND BALANCE? SO, UH, CURRENTLY WE'RE PROJECTED TO FINISH THE YEAR AT A 39.2 MILLION, AND THEN BY THE FIFTH YEAR WE ARE PLANNING TO GET CLOSE TO OUR, UH, GREEN TARGET LINE THERE.
SO AT THE BOTTOM OF THE GRAPHS, YOU CAN SEE HERE, UH, STARTING OFF WITH THE PERCENTAGE INCREASE ASSU UH, ASSUMPTIONS.
SO WE ARE ASSUMING IN THE FIRST SCENARIO A 6% RATE INCREASE, UH, FOR THE NEXT FIVE YEARS.
UNDERNEATH THAT YOU'LL SEE THE CIP IN MILLIONS.
SO RIGHT HERE, UH, YOU CAN SEE HERE THAT WE HAVE THE 62.9 MILLION, UH, NEEDED FOR THE CIP.
UH, BENEATH THAT WE HAVE THE PAYGO OR THE CASH FUNDED PORTION OF THAT.
AND THEN BENEATH THAT WE HAVE THE DEBT NEEDED, UH, TO PAY FOR THE CIP.
SO IF YOU ADD UP THE PAYGO AND THE DEBT PORTION, UH, YOU WILL GET TO THE CIP UH, PART OF THIS ASSUMPTION IS THE BORROWING OF THE 18 MILLION IN FY 27 AS WELL AS AN ADDITIONAL 12 MILLION, UH, IN FY 28 BEFORE WE GO TO, UH, A HUNDRED PERCENT PEGO.
SO FOR SCENARIO TWO, WE HAVE THE 8% INCREASE.
SO WHAT THAT DOES IS THAT ALLOWS US TO, UH, FINISH THE THIRD.
UH, SO FOR FY 29 AND 30, WE HAVE THE 5%, AND THEN FOR 31 WE HAVE A 3%.
UH, THE OTHER MAIN DIFFERENCE HERE IS THE, UH, BORROWING AMOUNT.
SO THE PREVIOUS, I'M SORRY, I GOT AHEAD OF MYSELF, SORRY.
SO THE, THE BORROWING AMOUNT REMAINS THE SAME WITH THE SCENARIO ONE.
SO SCENARIO ONE AND TWO ARE USING THE SAME, UH, $30 MILLION OVER TWO YEARS.
AND THEN IT'S SCENARIO THREE WHERE WE HAVE THE 10% INCREASE, UH, BEFORE WE GET DOWN TO THE 5%, AND THEN THE FY 31 AT A 4%.
AND THE MAIN DIFFERENCE ON THIS ONE IS
[01:05:01]
THE BORROWING, UH, NEEDS FOR FY 27 AND 28, WHICH IS 18 MILLION AS OPPOSED TO 30 MILLION.SO SOME OF THE KEY TAKEAWAYS HERE, UH, BEFORE WE MOVE ON IS THAT THE STAPLE OPERATING COSTS AND FAVORABLE GROUNDWATER SUPPLY CONDITIONS ARE HELP, ARE HELPING OFFSET INFLATIONARY PRESSURES WHILE THE INCREASED CIP ACTIVITY IS BEING OFFSET WITH HIGHER DEBT PROCEEDS AND REIMBURSABLE REVENUES.
ARE THERE ANY QUESTIONS REGARDING THE WATER BEFORE WE MOVE ON TO GAS? YES, DANIEL.
UM, THE, ON YOUR REVENUE PROJECTION, THE 6% INCREASE ON THE WATER SALES, DOES THAT ALSO INCLUDE A DECLINE IN THE BUYING OR DO YOU HOLD THAT FLAT? UH, IT, THEY'RE BASED ON A 12 MONTH ROLLING AVERAGE.
SO THEY ARE, THEY ARE PRETTY CONSERVATIVE NUMBERS, YES.
AND THEN ON THE, UM, I GUESS FOR THE CAP IMPROVEMENTS, THERE'S A $15 MILLION, UH, YEAR OVER YEAR CAPITAL IMPROVEMENT SPENDING.
AND IT LOOKS LIKE THE ESTIMATE TO CLOSE IS NOT QUITE, WHAT, $10 MILLION LESS THAN THE BUDGET? IS THAT, I MEAN, HOW CONSERVATIVE ARE WE ON THE 62 8? WELL, THAT IS THE, THE ESTIMATE THAT THE, OUR ENGINEERING GROUP HAD PROVIDED, BUT WE WILL CONTINUE TO MONITOR THE SAME WAY WE DO.
UH, AND, AND COMMISSIONER PARKIN, UH, THOMAS WILL GET UP AND EXPLAIN, BUT IN, IN GENERAL, ONE OF THE ASPECTS OF THE ESTIMATE TO CLOSE IN THE CIP IS THAT THAT'S A BURN RATE.
BUT IF THE PROJECT'S IN CONSTRUCTION OR THE PROJECT IS ON THE VERGE OF CONSTRUCTION, IT IS AN EXPENDITURE THAT WILL OCCUR.
IT'S JUST SIMPLY THE TIMING OF IT.
I MEAN, IT'S, IT'S NOT ALL GONNA GET SPENT IN 27 AND WELL, NO, IT DID KIND FOLLOW THROUGH TO THE SEWER.
CIP THAT'S LIKE TRIPLE OR WHATEVER IT IS.
AND, UM, IT JUST SEEMS LIKE A LOT OF WORK FOR THOMAS AND YOUR GROUP, ALL THE GROUPS TO GET DONE IN A YEAR WHEN YOU'RE LOOKING AT THESE BUDGET NUMBERS.
THOMAS IS GONNA GIVE YOU SOME PERSPECTIVE ON THE CARRYOVER FROM, I WAS SAYING THE CARRYOVER FROM FISCAL YEAR 26 INTO FISCAL YEAR 27, BECAUSE THE, THE REDUCTION IN EXPENDITURE IS NOT A GUARANTEE OF LOWER COSTS.
IT'S SIMPLY THE TIMING OF THOSE COSTS ARE ACTUALLY GOING TO OCCUR.
AND THAT'S, I AGREE, IT'S THE TIMING, BUT IT'S ALSO, THERE'S GONNA BE CARRYOVER FROM 27 INTO 28.
UM, SO THE, IF, IF I CAN START WITH FISCAL YEAR 27 AND THEN I'LL WORK MY WAY BACK.
SO ON FISCAL YEAR, YEAR 27, WE'RE PROJECTING 26 MILLION.
UM, I'LL START FROM FISCAL YEAR 27 AND THEN WORK MY WAY BACK.
SO ON FISCAL YEAR 27, WE'RE PROJECTING A SLIGHTLY HIGHER INCREASE BECAUSE OF THE HANES PIPELINE IMPROVEMENT PROJECT.
WE AWARDED THAT PROJECT, UM, LATE LAST YEAR.
SO THERE'S A CONTRACT THAT'S ALREADY OBLIGATED.
UH, WE ANTICIPATE ON SPENDING $14 MILLION JUST ON THAT PROJECT ALONE.
AND THEN WE HAVE A 32ND STREET, UH, PUMP STATION PROJECT THAT WE HAVE AWARDED.
AND WE KNOW THERE'S A CONTRACTOR THERE.
WE HAVE HIRED CONSTRUCTION MANAGEMENT.
SO PART OF THIS EFFORT IS WE'RE ALSO STAFF AUGMENTING, UH, WE WE'RE HIRING, UH, CONSTRUCTION MANAGERS AND INSPECTORS.
ON THE NEXT BOARD MEETING, YOU'LL ACTUALLY, UH, BE PRESENTED WITH, UH, UH, QUITE A FEW ON-CALL CONTRACTS TO SUPPLEMENT OUR STAFF, UH, FOR CONSTRUCTION MANAGEMENT SERVICES.
SO, AND, AND ALSO, YOU KNOW, THESE WELL PROJECTS, THEY TAKE ABOUT, YOU KNOW, SIX TO SEVEN YEARS FROM INCEPTION TO COMPLETION.
SO WE HAVE ABOUT SIX WELL PROJECTS THAT WILL BE GOING ON IN CONSTRUCTION FROM NOW GOING INTO FISCAL YEAR, ALAMITOS NINE 14, UM, UH, COM CITIZEN 10, UH, COM 14.
AND THEN WE JUST AWARDED ANOTHER TWO, THIS, THIS MEETING.
SO WE, WE HAVE QUITE A LOT OF PROJECTS THAT ARE GOING ON AND WE'RE AUGMENTING WITH STAFF AS WELL TO HELP WITH MANAGING SOME OF THESE PROJECTS.
SO IF YOU LOOK AT THE 62 AND YOU HAVE ESSENTIALLY A 10 CARRYOVER, SO THAT'S CONSTRUCTION WORK CARRYING OVER INTO FISCAL YEAR 27 AND 14 IS REIMBURSABLE.
SO IT'S A CERTAIN AMOUNT OF STAFF CAPACITY.
BUT IN TERMS OF COST EXPENDITURE, IT HAS A DIRECT OFFSETTING ON THE REIMBURSABLE SIDE.
SO THAT'S ABOUT, THAT'S ABOUT $24 MILLION.
THAT IS A FUNCTION OF A CARRYOVER AND REIMBURSABLE EMBEDDED WITHIN THE 62.
SO IF YOU TAKE 24 AWAY FROM 62, YOU'RE LEFT WITH 38, WHICH IS A SUBSTANTIALLY SMALLER CIP THAN THE 56 THAT WAS PROPOSED IN THE PREVIOUS FISCAL YEAR.
SO ENGINEERING IS DOING BALANCING AND ADJUSTMENTS GOING FORWARD PRECISELY FOR WHAT YOU SAID, WHICH IS AS YOU CARRY OVER SOME OF THESE ACTIVITIES, THE BANDWIDTH OR THE CAPACITY OF STAFF TO ABSORB THAT AND TAKE
[01:10:01]
ON NEW PROJECTS BECOMES AN ISSUE.AND SO IN THAT, WE'RE TRYING TO MANAGE THAT.
I GOT YOU DOWN TO 38 TO GIVE YOU A CONTRAST WITH THE PREVIOUS, UH, FISCAL YEARS, WHICH HAVE BEEN IN THE NEIGHBORHOOD OF 50, TO GIVE YOU A SENSE OF HOW MUCH IS BEING ADJUSTED IN ORDER TO TRY TO MANAGE THIS GOING FORWARD.
UH, WE'LL JUMP FROM EXPENDITURES TO, UH, REVENUE.
UM, WHAT WAS THE, WHAT IS THE DRIVER FOR THE THREE DIFFERENT SCENARIOS? THEY ALL SEEM TO ADD UP TO ABOUT A 30% INCREASE OVER FIVE YEARS, BUT WHAT WAS THE, WHAT WAS THE GOAL? YEAH, SO THE PHILOSOPHY HERE IS TO REACH OUR TARGET LINE WITHIN THE FIFTH YEAR.
SO USING A COMBINATION OF OUR, WHAT WE CALL OUR DIALS.
UH, CONTROLLING COSTS IS OBVIOUSLY ONE OF THEM.
AND THEN THE RATE INCREASE AS WELL.
SO SORT OF BALANCING IT SO THAT WE CAN GET THAT NICE TRAJECTORY, UH, AT THE UP, YOU KNOW, POINT UPWARD TOWARDS THE TARGET LINE.
SO WE JUST TRY TO FIND A MIX BETWEEN THAT.
SO A COMBINATION OF, YOU KNOW, STARTING OFF WITH OUR BASELINE OF SIX PERCENTS, WE ALSO DON'T WANT TO BAKING IT, BAKING A HIGHER RATE INCREASE IN THE FUTURE.
SO WE ALWAYS START WITH, UH, WHAT IS CONSIDERED BASELINE.
SO 6% ACROSS THE BOARD, AND THEN WE HAVE THE, THE 8%, WHICH THEN LOWERS THE OUT YEARS.
AND THEN WE HAVE THE 10%, WHICH LOWERS THE OUT YEARS AND REDUCES THE NEED TO BORROW.
SO IT'S TRYING TO GIVE A LITTLE FLAVOR OF, OF THE OPTIONS.
SO AS, AS YOU LOOK AT THOSE OPTIONS, THEN YOU SEE OUT IN FIVE YEARS, THAT'S THE EFFORT THAT ENGINEERING AND FINANCE TOGETHER HAVE WORKED TIRELESSLY TO TRY TO DEVELOP A BASELINE SCENARIO.
THERE IS NO, UH, PORT WATER TRANSFER.
THESE ALL REPRESENT THEN THE OPPORTUNITY TO ASSESS WHAT THOSE IMPACTS WILL BE OVER AND ABOVE A CERTAIN RATE PROFILE PROFILE AND A CERTAIN FUND BALANCE.
SO THE MORE STABLE YOU ARE GOING OUT, UH, PERHAPS THE MORE STABLE YOU ARE COMBINED WITH A LOWER RATE INCREASE, THEN THE GREATER CAPACITY YOU HAVE TO ABSORB WORK GOING INTO THE FUTURE.
THIS IS JUST A FIVE YEAR SCENARIO.
WE TAKE THAT PHILOSOPHY AND WE PLAY IT OUT OVER 10 YEARS.
SO SWITCHING OVER TO THE GAS SIDE HERE, WE HAVE THE TOTAL EXPENDITURES FOR FY 27 TO BE 145 MILLION, AND THE TOTAL REVENUES TO BE 144, UH, OR 145 MILLION.
AND WHAT THIS INCLUDES IN THE REVENUE IS GONNA BE THE, UM, THE ADJUSTMENTS TO ALL NINE SALARY SCHEDULES.
UH, SO WITH THAT WE'LL SHOW YOU THE, THE ACTUAL PERCENTAGES CHANGES, UH, WITHIN THOSE NINE.
BUT, UH, FOR THE GAS TRANSMISSION REVENUE, WE'VE TAKEN THAT INTO ACCOUNT.
AND, UH, WHAT WE HAVE HERE, UH, IS A SITUATION WITH, EVEN THOUGH WE DO HAVE, UH, RATE ADJUSTMENTS THAT WE'RE RECOMMENDING, UH, THE NEW, UH, TRANSMISSION REVENUE REFLECTS A NEW CONSUMPTION AMOUNT.
SO A MUCH MORE CONSERVATIVE NUMBER, UH, AND REFLECTS MORE OF OUR CURRENT, UH, CONSUMPTION.
UH, THE GAS COMMODITY REVENUE, UH, IS OFFSET BY THE GAS COMMODITY COSTS.
SO WHEN WE LOOK AT THE EXPENDITURE SLIDES, YOU WILL SEE THE OFFSET, UH, AS IT RELATES TO THIS, UH, THE GAS SERVICE FEES AND THE PREPAY, AS WELL AS THE MISCELLANEOUS REVENUE.
UH, THERE'S AN ADJUSTMENT HERE, MOSTLY ACCOUNTING CLEANUP.
UH, WE HAVE SHIFTED THE, UH, BUDGETED GAS PREPAY REVENUES, UH, AND SHIFTED THEM FROM THE MISCELLANEOUS REVENUE TO NOW BE INCLUDED.
PART OF THE GAS SERVICE FEES IN THE PREPAY.
UH, WE ALSO LOST A BIT OF OIL REVENUE OR LEASE REVENUE FROM OIL.
UM, JUMPING BACK DOWN TO THE DEBT PROCEEDS.
SO THIS NOW, UH, AND YOU'LL SEE IN THE FIVE YEAR, UH, PLAN, UH, THIS REPRESENTS A HUNDRED PERCENT DEBT FINANCING FOR OUR NON-REIMBURSABLE CIP.
SO IN TERMS OF OUR KNOBS, THIS IS ONE OF THE KNOBS BEING TURNED UP.
UH, SALARY, WAGES AND BENEFITS AGAIN, UH, WE'RE SEEING A 6% INCREASE, UH, FROM THE PREVIOUS YEAR.
THE GAS COMMODITY COSTS, AGAIN, IS THE OFFSET THAT YOU JUST SAW IN THE REVENUE SIDE.
THE GAS TRANSMISSION AND THE OPERATIONS AND MAINTENANCE ARE STAYING RELATIVELY FLAT YEAR OVER YEAR.
IF ANYTHING, THEY'VE GONE DOWN SLIGHTLY.
AND THIS, UH, REPRESENTS OUR, UH, CONTROLLING COST EFFORTS HERE.
WE HAVE A INCREASE IN THE CIP, UH, MAINLY ATTRIBUTED TO THE ROOF REPAIR PROJECT OVER AT THE SPRING CAMPUS.
AND THEN WE HAVE A SLIGHT INCREASE IN MOUS.
UH, WE HAVE THE NEW DEBT SERVICE AMOUNT, WHICH REPRESENTS THE INTEREST ONLY PAYMENTS ON OUR NEW LINE OF CREDIT.
AND THEN WE HAVE THE GENERAL FUND TRANSFER, WHICH IS, UH, REMAINING FLAT.
AND WHAT DOES THAT MEAN IN TERMS OF FUND BALANCE? SO
[01:15:01]
AS I MENTIONED, YOU'LL SEE IN, UH, THE NEXT TWO SLIDES THE BREAKDOWN OF THE CHANGES WITHIN THE, UH, FY 27 PROPOSED RATE ADJUSTMENTS.UH, BUT THEN WE ALSO WANTED TO SHOW WHAT THAT WOULD LOOK LIKE IN THE OUT YEARS.
SO WE HAVE A 6% ACROSS THE BOARD ASSUMPTION, UH, FOR RATE ADJUSTMENTS.
UH, UNDERNEATH THAT YOU'LL SEE THAT WE HAVE OUR CIP UH, BAKED IN ON THE SECOND COLUMN.
UNDERNEATH THAT YOU'LL SEE THE PAYGO PORTION, WHICH REPRESENTS, UH, ALL OF THE, UH, ESSENTIALLY REIMBURSABLE PROJECTS.
AND THEN BENEATH THAT, WE HAVE OUR NON-REIMBURSABLE PROJECTS, WHICH WE ARE PLANNING, UH, TO UTILIZE FULLY FOR THE NEXT FOUR YEARS.
THE NEXT SLIDE REPRESENTS, UH, ONE OF OUR EFFORTS HERE WHERE WE ARE UTILIZING A $3 MILLION, UH, FOR ONE-TIME FUNDS AVAILABLE USING THE HUNTINGTON BEACH PIPELINE ABANDONMENT PROJECT.
SO THE DIFFERENCE HERE BETWEEN THE TWO SLIDES IS THE ADJUSTMENT FOR THE $3 MILLION.
AS I MENTIONED, THIS IS THE UPDATED, UH, RATE SCHEDULE THAT WE ARE PROPOSING.
UH, IN TERMS OF RESIDENTIAL, WE HAVE A 2% RATE INCREASE FOR COMMERCIAL AND INDUSTRIAL.
UH, COMPRESSED NATURAL GAS IS, UH, BEING ADJUSTED DOWNWARD, UH, BY 18%.
AND THEN WE HAVE ELECTRIC, UH, GENERATION FOR 7% WITH TRANSPORTATION AND EXCHANGE OF NATURAL GAS INCREASING BY 36%.
SO KEY TAKEAWAY, UH, UPDATED CONSUMPTION ASSUMPTIONS ARE REDUCING PROJECTED REVENUES DESPITE PROPOSED RATE ADJUSTMENTS WHILE THE FUND CONTINUES FOCUSING ON COST STABILITY AND TARGETED INFRASTRUCTURE INVESTMENT.
ARE THERE ANY QUESTIONS BEFORE WE MOVE ON TO SEWER? MM-HMM
UM, I HAVE LIKE THREE OR FOUR QUESTIONS HERE.
LET'S START WITH THE EASY ONE.
HOW ABOUT ON THE HUNTINGTON BEACH ONE TIME PROJECT? IS THAT, IS THAT A PROJECT THAT'S NO LONGER GONNA GO FORWARD? OR WHY DO YOU BELIEVE THAT MONEY'S AVAILABLE NOW? TO PUT IT MAYBE TO PUT INTO THE RESERVE? YEAH, I'LL HAVE KEVIN ANSWER THAT QUESTION.
KEVIN'S GONNA GO AND THEN I'LL JOIN IN.
UM, WE ACTUALLY HAVE, UH, STARTED TALKING WITH THE STATE LANDS COMMISSION ON, UH, REMOVING OUR PIPELINE THAT IS IN THE WETLANDS.
WE'RE STILL TRYING TO FIGURE OUT WHAT THAT COST WILL BE, AND IT MAY TAKE SOME TIME.
SO, UH, THERE'S A CHANCE WE WON'T NEED THAT MONEY IN FISCAL YEAR 27.
AND IS THERE A CHANCE THAT IT'S GONNA BE MUCH MORE THAN 3 MILLION? IT'S PROBABLY TOO EARLY TO ESTIMATE, BUT, UH, I THINK RIGHT NOW THE FOCUS IS JUST WITHIN, UH, THE PIPELINE ITSELF IS ABOUT 14 MILES LONG.
UM, AND THE AREA THAT WE'RE TALKING ABOUT WITH STATE LANDS IS ONLY THE PORTION IN THE WETLANDS.
UH, THERE'S SOME COMPLICATIONS WITH, YOU KNOW, WORKING IN A, UH, A WETLANDS AREA, BUT, UH, WE'RE REALLY CONFIDENT WE CAN KEEP THE COSTS PRETTY CLOSE TO THAT 3 MILLION.
BUT, BUT YOU HAVE THAT 3 MILLION SITTING IN ACCOUNT READY TO GO IF YOU NEED IT, THAT THAT ACCOUNT WAS, UH, PREVIOUSLY PRIOR TO THE CONSOLIDATION OF THE UTILITIES, THAT WAS ACTIONS TAKEN BY THE GAS DEPARTMENT AND ITS GENERAL MANAGER BOB DOW AT THE TIME, IN TERMS OF MANAGING FINANCES, THEY CREATED AN INFRASTRUCTURE ABANDONMENT FUND.
THAT INFRASTRUCTURE ABANDONMENT FUND WAS STILL GENERAL FUND, STILL UNRESTRICTED, BUT IDENTIFIED AS SUCH AND KEPT OUT OF THE FINANCIAL CONSIDERATIONS WHEN IT CAME TO RATE ADJUSTMENTS AND FUND BALANCE.
WE USED 6 MILLION OF THAT LAST YEAR IN ORDER TO HAVE THE FUND BALANCE PROCEED IN THE MANNER THAT IT DID, UH, THAT LEFT 3 MILLION TO BE EXERCISED.
IT'S AN ACKNOWLEDGEMENT THAT INSTEAD OF A SET ASIDE, IT IS INHERENTLY PART OF THE BUDGET NOW GOING FORWARD, BECAUSE WE ARE ACTIVELY GOING TO ENGAGE ON THE PROJECT.
KEVIN POINTED OUT TO YOU THAT THERE'S A LOT OF COMPLEXITY AND NUANCE AS TO WHAT EXACTLY IS THE SCOPE OF WORK STUFF THAT'S UNDERGROUND CAN BE DEALT WITH IN A PARTICULAR WAY.
STUFF THAT'S ABOVE GROUND AND A SENSITIVE ENVIRONMENTAL HABITAT IS GONNA HAVE CERTAIN CONSTRUCTION MEANS AND METHODS THAT'LL BE SLIGHTLY DIFFERENT.
WE HAVE TO ANALYZE AND ASSESS.
IT COULD BE A QUESTION OF HANDLING IT OVER MULTIPLE FISCAL YEARS.
UM, SO THEREFORE IT WAS MY DISCRETION AND MY DECISION TO BRING IT FOR YOU TODAY AS IT OWNING UP TO IT NOW AND PUTTING IT IN THE BUDGET PROJECTIONS WITH THE FUND BALANCE AS WE ENGAGE THAT.
UM, THE NEXT ONE, THE ELEPHANT IN THE ROOM, THE, THE GENERAL FUND TRANSFER.
UM, IT, IT'S FLAT AND, BUT I'M NOT SURE IF I'M READING THE CHARTER RIGHT,
[01:20:01]
SO MAYBE WE NEED A MEETING WITH THE CITY MANAGER TO GO THROUGH THE CHARTER ON HOW IT'S CALCULATED GO GOING FORWARD.I, I'M NOT PROPOSING CHANGING IT THIS YEAR, BUT I THINK ON A GO FORWARD BASIS, IF YOU READ THE CHARTER THERE, THERE'S AN ORDER IN WHICH MONEY SHOULD BE ALLOCATED AND THEN THE TRANSFER IS CALCULATED.
AND THIS TO ME JUST SEEMS LIKE, OH, IT'S 7 13 7 OR 13 EIGHT AND THAT'S THE NUMBER AND EVERYBODY'S JUST AGREEING TO IT.
SO I'M JUST NOT SURE I'M RIGHT ON THAT.
BUT AT SOME POINT WE, I'D LIKE TO TALK TO SOMEBODY ABOUT IT AND SEE HOW IT, MAYBE I'M WRONG AND THEY CAN EXPLAIN TO ME WHY I'M WRONG.
STAFF AND I ARE, ARE HAPPY TO MEET WITH YOU.
UM, TO GO THROUGH THAT, YOU POINTED OUT CORRECTLY THAT IN THE CHARTER, THE CHARTER LANGUAGE HAS A METHODOLOGY ON WHAT TO DO WITH THE REVENUES OBTAINED.
IT DOES NOT ESTABLISH HOW YOU OBTAIN THOSE REVENUES.
IT DOES NOT ESTABLISH WHEN YOU OBTAIN THOSE REVENUES, IT ESTABLISHES A METHODOLOGY TO THE EXTENT THAT YOU HAVE REVENUES AVAILABLE, THEN YOU CAN APPLY THE METHODOLOGY.
THAT'S JUST ONE VIEW THERE, THERE IS INDEED A WIDE RANGE OF INFORMATION TO ENGAGE ON DISCUSSION OF THIS, UH, TO THE MATTER AT HAND WITH THE STAFF AND THE INCLUSION OF THAT IN THE BUDGET.
THE STAFF HAS MERELY INCLUDED A REPETITION OF WHAT IS NOW TWO FISCAL YEARS RUNNING OF THE PREVIOUS TRANSFER AMOUNT.
IT'S NOT A PERCENTAGE, IT'S NOT A CALCULATION, IT IS A REQUEST.
AND SO IT, IT CONTINUES TO HOLD IN IN THAT MANNER.
SO I UNDERSTAND THAT AND THAT'S, I THINK PART OF MY PROBLEM IS THE NUMBER HASN'T CHANGED AND I, I DON'T WANNA PICK A FIGHT WITH THE CITY, BUT I WANNA MAKE SURE WE'RE ALL ON THE SAME PAGE ON HOW WE CALCULATE IT AND WE ALL AGREE ON WHAT THE NUMBER IS.
UM, AND 13 SEVEN MAY BE RIGHT AND MAY BE WRONG.
I'LL WORK WITH STAFF AND WE'LL MEET WITH YOU AND, AND GO THROUGH THAT.
AND THEN ON, UM, THE RATE INCREASE, I'M COMPLETELY CONFUSED ON THE RATE INCREASE TOO.
SO, UM, THE RATES TWO THROUGH NINE, SCHEDULES TWO THROUGH NINE, UH, THOSE NUMBERS OUT OF, WITH NO CONTEXT AROUND THEM SEEM HUGE TO ME.
SO THEY WEREN'T ADJUSTED LAST YEAR, RIGHT? IS THAT CORRECT? UH, THOSE SCHEDULES, NO.
TWO, ONLY THE RESIDENTIAL SCHEDULE WAS ADJUSTED LAST YEAR.
AND OBVIOUSLY I, I JUST MAYBE NEED MORE INFORMATION ON THE SCHEDULES, UM, BUT TO UNDERSTAND IT BETTER, IT, IT REPRESENTS WHAT PERCENTAGE OF YOUR TOTAL REVENUE, THOSE SCHEDULES TWO THROUGH NINE? WELL, THE, IN TERMS OF THE INCREASE, UH, AS THERE WAS NO INCREASE, SO, SO EVERYTHING WAS ADJUSTED.
SO, SO NO, I, I GET RESIDENTIAL IS THE CORE DRIVER FOR THE GAS REVENUE, BUT SCHEDULES TWO THROUGH NINE MAKE UP A COMPONENT OF THE TOTAL.
50%, SIX, 30%, 10%, I DON'T KNOW.
UM, WELL, I'M NOT SURE IF THEY HAVE THAT INFORMATION.
COMMISSIONER PARKIN, UM, OUR GAS FUND REVENUES COME FROM A NUMBER OF SOURCES.
SO THESE RATES ARE APPLICABLE ONLY TO THE TRANSMISSION COSTS.
THEY HAVE NO IMPACT ON THE COMMODITY COSTS BECAUSE COMMODITY IS AND MONTHLY MARKET BASED.
BUT IN TERMS OF THESE RATE INCREASES, THEY DO, THEY DO COMPRISE ROUGHLY 50% OF OUR TRANSMISSION REVENUES RELATED TO GAS.
UM, ROUGHLY SPEAKING ON THE CU CUSTOMER PERCENTAGE, RESIDENTIAL IS ABOUT 99% OF OUR CUSTOMER BASE IN TERMS OF CUSTOMER ACCOUNTS.
HOWEVER, EVEN WITH BEING 99% OF OUR CUSTOMER ACCOUNTS, RESIDENTIAL ONLY ACCOUNTS ARE ROUGHLY 50% OF OUR TRANSMISSION REVENUES.
THE OTHER 50% ARE REP, THE OTHER 50% OF TRANSMISSION REVENUE IS COMPRISED OF THE 1% OF COMMERCIAL CUSTOMERS IN THESE OTHER RATE CLASSES.
AND THESE, THESE NUMBERS, I ASSUME SOMEBODY DID A CALCULATION AND SAID SCHEDULE TWO THROUGH NINE, WE CAN INCREASE IT 24% AND BE EQUAL TO OR LESS THAN SOCAL GAS? THAT IS CORRECT.
AND THEN THE LAST THING I IS JUST THE RESERVE.
FIRST I WANNA THANK STAFF FOR THIS REPORT.
THERE'S A TON OF WORK, UH, YOU GUYS DO A GREAT JOB OF PUTTING IT TOGETHER, PEOPLE LIKE ME, SO I CAN KIND OF UNDERSTAND IT.
UH, AND THE RESERVE HAS BEEN MY KIND OF QUESTION ABOUT THE GAS FUND AND HOW WE CAN THAT BACK UP AND STILL SUPPORT THE CITY AND DO ALL THOSE THINGS THEY WANT TO DO.
SO IF THESE KIND OF RATE INCREASES ARE PROBABLY DON'T MAKE ANYBODY HAPPY, AND I'M CERTAINLY NOT HAPPY TO SEE THOSE
YES, BUT SPEAK A LITTLE, YOU DIDN'T WANNA HEAR THAT ANYWAYS.
[01:25:01]
THE MICROPHONE.NO, I WAS JUST SAYING I'M HAPPY TO SEE FIRST ALL THE WORK THE S DID AND THEN THESE KIND OF RATE INCREASES, UM, ARE TROUBLING TO ME, BUT THERE'S A REASON FOR IT.
I'M SURE THAT, THAT I DON'T UNDERSTAND, BUT I, WE'VE GOTTA GET THAT RESERVE UP.
AND I THINK THE GENERAL FUND IS A KIND OF A DISCUSSION WE HAVE TO HAVE AT SOME POINT WITH THE WHOLE COMMISSION.
THE, THE COMMISSION'S EXPERIENCE GOING THROUGH THIS, WHICH IS ALWAYS A DIFFICULT SITUATION, BUT BRINGING THE THREE UTILITIES TOGETHER AT THE SAME TIME THAT THEY ARE TOGETHER, THEY INHERENTLY HAVE DIFFERENCES AMONGST THEM.
AND ONE OF THE CRITICAL DIFFERENCES AMONGST THEM IS THE ABILITY OF THE COMMISSION TO RAISE RATES IN ANTICIPATION OF PROJECTED COSTS.
SO WHEN IT COMES TO THE GAS FUND, ITS ABILITY TO RAISE RATES HAS EVERYTHING TO DO WITH THE CAPACITY OF SOCAL GAS RATES.
AND TO THE EXTENT THAT THERE IS A GAP BETWEEN THEM THAT REPRESENTS THE OPPORTUNITY TO INCREASE REVENUE.
I WANT TO REMIND THE COMMISSION THAT IN RATE ADJUSTMENTS THAT SOCALGAS FILES FOR, THEY SOMETIME ARE ASKED TO REDUCE RATES.
AND THAT'S INHERENTLY DIFFERENT THAN WATER AND SEWER FUNDS.
WATER AND SEWER FUNDS INHERENTLY ARE ALWAYS WITHIN THE POWER OF THE COMMISSION TO MATCH UP THE COSTS IN INCREASE REVENUE AS THEY SEE FIT TO MATCH COSTS AND BALANCE FUNDS ON.
SO ON THE GAS SIDE, IT'S SLIGHTLY DIFFERENT.
UH, AND THEREFORE WHEN CAPACITY OCCURS, THE GENERAL GUIDANCE WOULD BE LET'S GO AND MATCH UP TO CAPACITY.
THE SECOND THING IS THAT WATER AND SEWER IS INHERENTLY NOT CUSTOMER CONCENTRATED.
UM, IN THE ACT FOR, FOR WATER AND SEWER, YOU GENERALLY HAVE A, A CRITERIA OR STATISTIC IN THE BACK OF THE BOOK THAT POINTS OUT TO THE TOP 10 MAJOR CONSUMERS OR MAJOR, UM, CUSTOMERS.
AND THE CONCENTRATION ON THE WATER AND SEWER, IT'S JUST SIMPLY NOT EXISTENT.
THE TOP 10 CONSUMERS GENERALLY CON, UH, ACCOUNT FOR LESS THAN 10% OF THE TOTAL.
BUT ON THE GAS SIDE, YOU HAVE THIS SIGNIFICANT DIFFERENCE, RIGHT? A HUGE CONCENTRATION OF A LIMITED NUMBER OF NON-COMMERCIAL CUSTOMERS WHO BY THE VIRTUE OF THEIR GAS USAGE, THEIR RATES DO AFFECT THE REVENUE.
I'M GONNA BE QUIET, COMMISSIONER PARKING, IT LOOKS LIKE YOU WANTED TO MAKE A COMMENT JUST YEAH, AND, AND I, I DON'T, I'M NOT TRYING TO SAY THAT ANYTHING'S WRONG HERE.
IT'S JUST ME PROBABLY NOT UNDERSTANDING IT, BUT RATE SCHEDULES TWO THROUGH NINE, THAT CAPACITY AND THOSE NUMBERS WITHOUT THE CONTEXT, MAYBE, MAYBE THAT CAPACITY WAS ONLY CREATED IN THE LAST SIX MONTHS OR, OR MAYBE WE DIDN'T HAVE THAT PREVIOUSLY WHEN THE COMMISSION ADOPTED THE DOUBLE DIGIT RATE INCREASE FOR THE RESIDENTIAL LAST YEAR.
AND I DON'T WANNA BE CRITICIZED OR HAVE THE COMMISSION CRITICIZED IT.
OH, YOU DID THAT TO RESIDENTIAL AND YOU JUST, YOU WERE TAKING CARE OF ALL THESE OTHER PEOPLE, YOU WEREN'T DOING IT THEN, RIGHT? SO IT'S A TIMING THING.
IT'S, IT'S MY PROBABLY LACK OF UNDERSTANDING IT, BUT I GET THAT IT'S DIFFERENT THAN
AND SO I APOLOGIZE IF I'M JUST KIND OF BLABBING HERE, BUT IT'S JUST, I DIDN'T UNDERSTAND IT AND I SAW THOSE NUMBERS AND MY COMMENTS WERE NOT DIRECTED SPECIFICALLY TO YOUR QUESTION.
MY COMMENTS WERE JUST IN GENERAL FOR THE AWARENESS OF THE COMMISSION AND THE AWARENESS OF THE STAFF.
IT LOOKS LIKE DIANA WANTS TO MAKE A COMMENT.
UH, JUST AS A COMMENT, UM, I REALIZE THE NUMBERS LOOK JARRING.
UM, GOOD NEWS IS WE ARE, UM, FAIRLY AWARE OF WHO, OF WHO OUR COMMERCIAL CUSTOMERS ARE.
THERE'S NOT VERY MANY OF THEM.
UM, THE LAST TIME WE DID DO A DOUBLE DIGIT RATE INCREASE, THEY DID CALL AND ASK WHY.
UM, SO THIS TIME WE WILL MAKE A MORE PROACTIVE EFFORT TO REACH OUT TO THOSE CUSTOMERS, UM, EARLY ON BEFORE THE ADOPTION, UM, HOPEFULLY OF OUR BUDGET IN A COUPLE MONTHS OR A COUPLE WEEKS, UM, JUST TO SHARE WITHIN THE CITY CHARTER LANGUAGE WHAT OUR RATE SCHEDULE IS.
IT'S VERY TRANSPARENT WHAT SOCALGAS RATE SCHEDULES ARE SO THAT THEY CAN SEE THAT YES, WE ARE PROPOSING RATE INCREASES, BUT IT IS REALLY IN LINE WITH THE INDUSTRY.
SO IF THEY WERE TO DO BUSINESS ANYWHERE ELSE IN SOUTHERN CALIFORNIA, THEY WOULD BE PAYING THIS, UM, OR VERY, SOMETHING VERY SIMILAR.
AND I THINK THAT'S SUPER IMPORTANT, RIGHT? BECAUSE I THINK TO SEE THAT IN A BAR CHART OR WHATEVER COMPARING SOCAL TO LONG BEACH, UM, WOULD, WOULD GO A LONG WAY AND KIND OF MINI MITIGATING THAT THOSE NUMBERS.
JUST TO PIGGYBACK ON THAT REAL QUICK, SO, AND THIS IS PROBABLY ASKED AND ANSWERED.
UH, SO WE HAVE NOT RAISED SCHEDULE TWO THROUGH NINE IN THE LAST SO MANY YEARS.
YOU PHRASED, I BELIEVE THREE YEARS AGO.
WAS THAT THREE YEARS AGO? UM, DO YOU RECALL? OH GOSH, SOMEWHERE IN THE TEENS IT WAS DOUBLE DIGIT.
OH, THANK YOU FOR THE, THE REPORT.
UM, HELP ME UNDERSTAND AGAIN, BECAUSE I'M KIND OF
[01:30:01]
NAIVE ON THIS END.SO THE, THE, THE RATE INCREASE FOR TWO THROUGH NINE IS THEY'RE 1% OF OUR, THAT WHAT IT IS, 1% OF OUR, OKAY.
1% OF CUSTOMERS CUSTOMER BASE, CUSTOMER ACCOUNTS.
SO IS THE INCREASE ON JUST THE TRANSMISSION, YOU SAID NOT ON COMMODITY? CORRECT.
DOES THAT MAKE THEM FEEL ANY BETTER OR NO? PROBABLY NOT.
UM, DO, DO WE HAVE A TEAM THAT, THAT WE HAVE, LIKE I KNOW AT EDISON, I THINK I'VE ASKED THIS YEARS AGO WE HAD A, UM, A, A BUSINESS TEAM THAT WOULD GO OUT.
DO WE HAVE THAT HERE TOO? WE DON'T HAVE THAT IN TERMS OF RATES, BUT DENNIS, UM, WHO DOES OUR GAS BUYING, HE INTERACTS WITH A LOT OF THESE CUSTOMERS.
SOME OF THEM HAVE TRANSPORT AGREEMENTS, WHICH REQUIRE ADDITIONAL INTERACTION WITH US.
UM, WE TYPICALLY HAVE NOT DONE THESE TYPES OF RATE INCREASES, SO THE NEED HASN'T BEEN THERE, BUT THE RELATIONSHIP IS, AND WE WILL USE THAT TO COMMUNICATE THE CHANGES WHEN THERE'S AN INCREASE IN, UM, IN THE TRANSMISSION COSTS.
WHAT'S THAT REFLECTING? IS IT, UM, INFRASTRUCTURE, IS IT INTEGRITY OF THE SYSTEM? IS IT TRANSMISSION RATES PAY FOR THE MAJORITY OF OUR CIP.
ANY OTHER COMMISSIONER COMMENTS? ALRIGHT.
SWITCHING OVER TO THE, UH, SEWER FUND.
UH, SO HERE, UM, AGAIN, WE'RE SHOWING THE FY 27 PROPOSED, UH, WHICH IS NEARLY OR ALMOST DOUBLE OF THE PREVIOUS YEAR'S BUDGET.
UH, AND AGAIN, THIS INCLUDES THE 8% RATE INCREASE AS WELL.
SO WE'LL GO AHEAD AND GET INTO THAT.
UH, STARTING OFF WITH THE VOLUMETRIC AND DAILY SERVICE CHARGE, UH, AS MENTIONED, THIS IS THE 8% INCREASE, UH, THAT YOU'RE SEEING.
THE SEWER CAPACITY CHARGE, UH, HAS INCREASED TO MANAGE CURRENT ACTIVITY.
SO THE MAJOR INCREASE THAT WE'RE SEEING HERE ON THE REVENUE SIDE IS GOING TO BE ASSOCIATED WITH THE NEW LINE OF CREDIT, WHICH IS GONNA HELP PAY FOR OUR, UH, CIP EXPENSES.
UH, THE REIMBURSABLE CIP IS RELATED TO THE HANES PLANT PROJECT, SO WE HAVE ABOUT 12, UH, 12.4 MILLION, UH, DEDICATED TO THAT PROJECT.
SWITCHING OVER TO SALARIES, WE ARE SEEING, UH, A SIMILAR 6% INCREASE, UH, OVER THE PREVIOUS YEAR'S BUDGET.
AND THEN, UH, WITH THE O AND M, UH, WE ARE ALSO ANTICIPATING MAINLY, UH, FLAT O AND M, UH, WITH THE INCREASE, UH, BEING ATTRIBUTED TO THE NEW VEHICLES AS MENTIONED, UH, WE ARE SEEING THAT INCREASE IN THE CIP, UH, WHICH IS REFLECTIVE OF THE SHIFTING OF PROJECTS FOR THE LA 28 OLYMPICS.
UH, THE DEBT SERVICE FUND INCREASE IS RELATED TO THE NEW BORROWING NEEDS, AND THEN THE GENERAL FUND TRANSFER IS, UH, SLIGHTLY INCREASING TO, UH, REFLECT THE CURRENT ACTIVITY THAT WE'RE SEEING NOW.
WHAT DOES THAT MEAN IN TERMS OF FUND BALANCE? SO, UH, AS I STATED, UH, WE ARE STARTING OFF WITH THE 8%, UH, ASSUMPTION FOR OUR BASELINE.
UH, AND WITH THAT WE HAVE THE, UNDERNEATH THAT WE HAVE THE 35.9 MILLION IN THE CIP, UH, WITH JUST ABOUT 8 MILLION DEDICATED FOR THE CASH FUNDED PORTION FOR THE PEGO.
AND THEN WE HAVE 28 MILLION, UH, FOR THE ADDITIONAL LINE OF CREDIT.
IN OUR NEXT SCENARIO, UH, WE HAVE A 10% INCREASE.
AND SIMILAR TO THE WATER FUND, UH, WHAT HAPPENS HERE IS WE HAVE LOWER RATE INCREASES IN THE OUT YEARS.
SO IT GOES FROM, UH, 10% TO TWO YEARS OF SEVEN, AND THEN THE SIX AND FIVE.
AND AS YOU CAN SEE AS WELL, WE ARE, UH, REDUCING OUR NEED FOR BORROWING IN THE OUT YEARS AS WELL.
SO THE CIP ITSELF IS MAINLY SEEING A JUNK FOR FY 27 AND THEN RETURNING TO A MORE NATURAL CIP.
IN OUR THIRD SCENARIO, WE HAVE THE 12% RATE INCREASE, UH, WHICH THEN IMMEDIATELY GETS US BACK DOWN TO OUR NORMAL SIX TO 5% RATE INCREASES.
AND IN THESE SCENARIOS, ALL THREE OF THE OPTIONS, UH, INCLUDE THE SAME, UH, DEBT.
SO NOTHING IS CHANGING ON THE DEBT SIDE.
SO IN TERMS OF THE KEY TAKEAWAY, UH, THE CIP ACTIVITY IS DRIVING THE NEED FOR ADDITIONAL BORROWING AND REIMBURSABLE PROJECT ACTIVITY WHILE MAINTAINING POSITIVE, UH, PROJECTED FUND BALANCE GROWTH.
ARE THERE ANY QUESTIONS REGARDING THE SEWER
[01:35:04]
THAT'S SAID? LET'S JUMP TO COMM AUSTIN.I, I'LL LET YOU GO FIRST BECAUSE YOU'LL PROBABLY COVER WHAT I WANT.
OKAY, YEAH, IT SEEMS, I MEAN, IT OBVIOUSLY JUMPS OUT ON, ON PAPER, SO I WOULD LOVE TO HAVE SOME MORE INFORMATION, BUT THAT'S FORTHCOMING.
SO SIMILAR TO THE, THE CASE WITH WATER IN THE SEWER, EXCUSE ME, THIS WHERE IS, UH, ALSO DRIVEN BY THE HANES PROJECT.
$12 MILLION OF IT IS HANES REIMBURSABLE PROJECT LA 28.
THERE ARE TWO, UH, PROJECTS THAT WE NEED TO COMPLETE PRIMARILY TO PROJECT THE MARINA PUMP STATION S NINE, UM, THAT, THAT IS TAKING A LITTLE BIT MORE, UM, 'CAUSE WE NEED TO UPGRADE THE SEW SYSTEM AND THE PUMP STATION IN THAT AREA.
AND THEN THE CHERRY GARDENA, UH, PI PIPELINE REPLACEMENT PROJECT.
SO THOSE TWO PROJECTS YOU HAVE TO COMPLETE PRIOR TO THE, THE EVENT STARTING.
UH, SO THAT'S, THAT'S THE NEXUS OF WHY IT'S, UH, HIGHER THAN PREVIOUS YEARS.
SO WHAT IS GOING TO BE HAPPENING DURING LA 28 THAT IS GONNA INCREASE SEWER DEMANDS? WHAT IS GOING TO HAPPEN DURING THAT TIME? WHAT, WHAT, WHAT DO WE FORESEE HAPPENING DURING THE, THE OLYMPICS TO, TO INCREASE DEMANDS ON OUR SEWER SERVICES? SO THE DEMANDS THAT THE DEMANDS ARE MINIMAL, THEY'RE NOT, THEY'RE NOT SIGNIFICANT, BUT THE IMPROVEMENTS NEED TO HAPPEN BEFORE THE LA THE LA 28 EVENT TAKES PLACE.
SO IN THE COASTAL, IN THE COASTAL ZONE, SEWER INFRASTRUCTURE RELIES ON SEWER PUMP STATIONS, WHICH IS HEAVILY, UH, MECHANICAL INFRASTRUCTURE.
THAT'S WHAT KEEPS THE SEWERS FLOWING IN THE COASTAL AREA.
SEVERAL OF THESE PUMP STATIONS ARE LOCATED WITHIN THE PROXIMITY OR IN THE AREA OF THE OLYMPIC VENUES.
AND SO THEREFORE, THE GOAL THAT THE CITY HAD COMPREHENSIVELY WAS TO LOOK AT ALL CITY INFRASTRUCTURE AND MAKE SURE THAT CITY INFRASTRUCTURE IS AS UP TO DATE AS POSSIBLE AND NOT EXPOSED TO THE POTENTIAL FOR A BREAKDOWN OR FOR A MALFUNCTION DUE TO SCHEDULED MAINTENANCE THAT WAS TO COME DURING THE OLYMPICS OR TO COME JUST AFTER, DURING THE OLYMPICS, SAID, WHY DON'T YOU ACCELERATE THAT, GET THAT TAKEN, TAKEN CARE OF? AND SO WE HAVE PUT OUR BEST FOOT FORWARD IN MAKING SURE THAT THE INFRASTRUCTURE IS READY TO GO AND OPERATING WITHOUT INTERRUPTION.
WE ARE NOT GUARANTEEING AT THE SAME TIME THOUGH, THROUGH OUR BEST EFFORTS, NOT JUST IN CIP, BUT ALL OTHER OPERATIONS AND MAINTENANCE ACTIVITIES, WE'RE DOING OUR BEST SO THAT DURING THE LA 28 OLYMPICS AND PARALYMPICS, WE DON'T FIND OURSELVES WITH A BREAKDOWN IN INFRASTRUCTURE THAT WE POTENTIALLY WOULD CAUSE A MINOR DISRUPTION TO THE OLYMPIC VENUES.
AND YOU KNOW, I, IT JUST, IT JUST, UH, DAWNED ON ME THAT, THAT, UM, NOBODY WATCHING THE OLYMPICS, UH, NO RESIDENTS WILL, WILL EVEN KNOW THAT THIS, THIS, THIS, THIS WORK IS BEING DONE IN PREPARATION AND THE SIGNIFICANT IN TERMS OF, UH, THE, THE, UH, THE COMMITMENT FROM, UH, THE UTILITY DEPARTMENT, THE CITY, AND THE RIGHT PAYER.
SO THANK YOU COMMISSIONER AUSTIN COVERED THE CIP PART.
I HAD, UM, THE OTHER PART I HAD, IF YOU COULD GO TO THE SLIDE WITH THE 8% RATE INCREASE FOR THE SEWER FUND.
AND, AND I GUESS MY QUESTION IS FOR FINANCE, WHEN YOU HAVE THE RESERVES WHERE IT IS, WHICH IS VERY HEALTHY IN A GOOD SPOT, WHY WOULDN'T YOU TAKE A LITTLE BIT OF THE RESERVE, SAY IN 28 OR MAYBE 29 OR WHATEVER AND PAY DOWN YOUR DEBT INSTEAD OF CONTINUING TO BUILD RESERVES WHILE YOU'RE PAYING DEBT? DOES THAT MAKE SENSE? YOU, YOU COULD, SORRY, DANIEL.
YEAH, NO, I WAS GONNA SAY THAT.
YEAH,
OH, DANIEL, I'LL, I'LL BE QUIET AND YOU GO FROM HERE AND THEN I'LL CHIME IN.
NOW THOSE ARE, UH, THOSE ARE OPTIONS.
UH, WE LOOK AT A COMBINATION OF THINGS.
ONE IS NOT JUST THE FIVE YEARS, BUT ALSO THE, THE YEAR SIX THROUGH 10 TO SEE IN TERMS OF TRAJECTORY, UH, WHERE FUND BALANCE IS HEADED.
[01:40:01]
FOR HERE IS A VERY STABLE, UH, INCREASE THROUGHOUT THE YEARS SO THAT WE AREN'T NECESSARILY DROPPING FUND BALANCE AND THEN JUMPING IT BACK UP AGAIN.SO, WELL, AND, AND I, THAT COULD BE PERFECTLY REASONABLE, BUT I JUST THINK WITH, WHEN WE SET A MINIMUM AND A MAXIMUM AND WE CALL 'EM THAT, AND YOU'RE SITTING UP AT THE MAXIMUM AND YOU HAVE DEBT, I I, I DON'T KNOW WHY YOU SIT ON THAT MUCH CASH AND STILL HAVE DEBT, YOU DON'T PAY OFF YOUR DEBT.
AND I DON'T WANT TO BE CRITICIZED LIKE, OH, WHY YOU HAVE ALL THIS MONEY, BUT YOU'RE STILL PAYING ALL THE INTEREST ON DEBT IS ALL, THERE'S A QUESTION I HAVE AND SOMETHING YOU COULD LOOK AT.
OH, NOW ME, I'LL LET A**L ANSWER THAT ONE.
HE'S GONNA TURN IT OVER TO A**L, LET A**L ANSWER THAT.
YOUR QUESTIONS ARE RIGHT ON POINT.
AND SO ONE OF THE THINGS THAT I THINK IS IMPORTANT FOR THE COMMISSION IS THAT AS YOU GO INTO YOUR STRATEGIC PLANNING EFFORTS, IS TO PROVIDE SOME MORE CLARITY AND SUBSTANCE IN YOUR FINANCIAL RESERVE POLICY.
UM, IF I GIVE YOU A CONTRAST ON HOW TO LOOK AT THE LOWER LINE AND THE UPPER LINE, SOMETIMES THE UPPER LINE IS REFERRED TO A MAXIMUM, SOMETIMES THE UPPER LINE IS REFERRED TO A TARGET.
THE REASON THAT, REASON THAT THE UPPER LINE IS REFERRED TO A TARGET IN SOME CASES, AND THIS IS REPRESENTS A POINT OF DEBATE AND DISCUSSION THAT YOU, THE BOARD WILL HAVE GOING INTO THE STRATEGIC PLANNING SESSION.
THE REASON IT'S CALLED A TARGET IS BECAUSE THE MINIMUM IS INDEED A MINIMUM 90 DAYS CASH.
AS WE'VE SEEN IN THE MOST RECENT SITUATION WITH THE CYBERSECURITY EVENT THAT AFFECTED THE CITY.
WHEN WE SHUT DOWN THE UTILITY BILLING SYSTEM FOR 30 DAYS, THERE ARE CONSEQUENCES TO BEING BELOW THE MINIMUM.
YOU LITERALLY HAVE CASH GOING OUT THE DOOR TO SUPPORT OPERATIONS, AND YOU HAVE NO CASH COMING IN.
THAT MEANS THAT AS YOU SET FINANCIAL RESERVE POLICY ABOVE THE MINIMUM, YOU HAVE A WIDE RANGE OF LATITUDE GIVEN UNFORESEEN CIP PROJECTS GIVEN A DESIRE TO PAY DOWN DEBT GIVEN A DESIRE TO MANAGE RATES.
ALL OF THOSE ARE WITHIN THE BOARD'S DISCRETION BETWEEN THE MINIMUM AND LET'S SAY MAXIMUM WHAT'S CALLED HERE OR THE TARGET ONCE YOU EXCEED THE TARGET.
UM, IF THE FINANCIAL RESERVE POLICIES MATCH SOME OF THE OTHER UTILITIES HERE IN SOUTHERN CALIFORNIA EXCEEDING THE TARGET IS YOU WILL COMMIT TO REDUCTION OF RATES.
BUT YOU, YOU ARE CORRECT THAT, LET'S, LET'S GO TO YOUR POINT IN FISCAL YEAR 29, 30, 31, THERE'S OBVIOUSLY AMPLE OPPORTUNITY TO READJUST YOUR DEBT BALANCE AND TO PAY DOWN DEBT, LOOK AT THE EXPIRATION DATE ON BONDS AND REFINANCE THEM.
I WOULD SAY THAT ALL OF THOSE ARE THE CAPACITY OF THE BOARD TO DIRECT AT THAT FUTURE DATE, BUT NOT AT THIS POINT IN TIME.
AS YOU SEE THE FUND BALANCE GROWTH AS YOU SEE THE RATES ASSOCIATED WITH IT, I AGREE YOU HAVE THAT UNDERSTANDING THAT THERE IS A LOT OF POTENTIAL IN THE FUTURE AND THAT SHOULD GIVE YOU SOME GUIDANCE AS TO HOW YOU WANNA SET RATES TODAY FOR THIS FISCAL YEAR.
AND THAT'S WHAT'S GONNA BE MY POINT IS I I CERTAINLY WOULDN'T SUPPORT A 7% INCREASE WHEN YOU'RE ALREADY AT YOUR MAXIMUM OF THE RESERVE ON A RE YOU KNOW, A RATE INCREASE.
SO THAT WOULD CHANGE THE AMOUNT OF YOUR, UH, WELL YOU WOULD SEVEN, 7% IN YEAR 30 FY 30.
WHY WOULD YOU GIVE A RATE INCREASE OF 7% WHEN YOU'RE ALMOST, YOU ARE AT YOUR MAXIMUM FOR YOUR RESERVE? YOU, YOU'D HAVE TO EXPLAIN TO ME WHY I GOTTA GO OUT AND TELL THE RATE PAYER THEY HAVE TO PAY A 7% INCREASE WHEN WE HAVE OUR RESERVES ARE MAXED OUT.
THAT'S WITHIN YOUR CAPACITY AS THE BOARD AND YOUR FINANCIAL RESERVE POLICY.
IF YOU FIND IT PRUDENT TO CARRY THAT AMOUNT OF MONEY FOR THE DISCRETION TO TAKE ACTIONS AS YOU SEE FIT.
FOR, FOR EXAMPLE, FOR, FOR EXAMPLE, COMMISSIONER PARKIN IN THE SEWER FUND, AS THOMAS POINTED OUT, THE NATURE OF THE INFRASTRUCTURE IN THE SEWER FUND IS LARGE BULKY SEWER PUMP STATION PROJECTS.
IF ONE OF THEM TRIGGERS AN IMMEDIATE NEED THAT CAN DWARF THE ANNUAL CIP ASSOCIATED WITH THE BASELINE CIP, BUT, BUT YOUR DEBT FINANCING A LOT OF THOSE PROJECTS ANYWAY.
WELL, I'M, I'M I'M TALKING ABOUT AN UNKNOWN.
SO YOU HAVE THE CIP IN THE OUT YEARS OF 7 6 8 3 4 6.
THAT IS WITH A BASELINE ASSUMPTION THAT IS NO CAPACITY TO ABSORB A PROJECT THAT YOU DON'T KNOW YET, WHICH COULD POTENTIALLY OCCUR.
AND IN THE SEWER INFRASTRUCTURE, THE BIGGEST EXPOSURE IS THE BULKY SEWER PUMP STATION PROJECTS.
WE HISTORICALLY HAVE HAD UPSETS WHERE WE HAVE FOUND OURSELVES WITH AN UNFORESEEN PROJECT AND NOW NEEDING TO EXERCISE SOME DISCRETION AND EXERCISE.
IF YOU HAVE THE FUNDS AVAILABLE IN CASH, YOU'RE ABLE TO ABSORB THAT EMERGENCY IMPACT AND TAKE IT FROM THE, TAKE IT FROM THE FUND BALANCE.
I I JUST, AND MAYBE THAT'S A DISCUSSION OF WHETHER IT SHOULD BE MAXIMUM AND A TARGET OR A MINIMUM AND A TARGET OR CORRECT.
WHAT IT'S, BUT I WOULD, I WOULD DEPEND ON YOU AND STAFF TO TELL ME WHAT THE RIGHT NUMBER OF A TARGET
[01:45:01]
IS OR A MAXIMUM IS.SO THEN WE CAN MAKE THOSE DECISIONS YOU'RE TALKING ABOUT.
AND THAT'S EXACTLY WHAT I AM HOPING THAT WE WILL DO STAFF WITH THE BOARD AS YOU MOVE INTO THE STRATEGIC PLANNING PROCESS AND SET YOUR FINANCIAL RESERVE POLICIES AND YOU SET THE DISCRETION YOU WANT TO GIVE YOURSELF FOR THE ACTIONS YOU CHOOSE.
UH, COMMISSIONER AUSTIN, UH, AND AS, AS I UNDERSTAND, JUST A, A KIND OF FOLLOW UP TO THAT, THAT LOGIC, WE, THIS IS A FORECAST OVER SEVERAL YEARS.
THIS, THE BUDGET PROCESS IS AN ANNUAL PROCESS.
RIGHT? SO WE WE WE CAN THERE'S ROOM TO, TO, TO, TO WORK WITH THIS.
ANY OTHER COMMENTS, QUESTIONS? UH, AL DO YOU HAVE ANY WRAP? NO.
SO THIS IS THE BALANCING BUDGET AND AFFORDABLE RATES.
SO THIS IS JUST THE EFFORTS THAT GO INTO THIS.
SO THE CONTROLLING COSTS, UH, IMPROVE EFFICIENCY, THE MANAGEMENT OF DEBT, AND THE INCREASE OF REVENUE.
AND WITH THAT, THAT CONCLUDES THE PRESENTATION.
ALRIGHT, THANK YOU, GENERAL MANAGER.
DO YOU HAVE ANY CLOSING? I, I, I WANT TO START BY THANKING THE COMMISSION, ALL OF YOUR COMMENTS, ALL OF YOUR INSIGHTS.
IT IS WHAT I HAD ALWAYS HOPED FOR IN MY RELATIONSHIP DURING MY TENURE WORKING WITH YOU.
AS I SAID BEFORE, FOR YOU TO BE A WORKING BOARD FOR YOU TO ENGAGE WITH STAFF, FOR YOU TO ASK DETAILED QUESTIONS FOR YOU TO DIRECT STAFF.
AND I THINK TODAY'S DISCUSSION PROVES IT OUT.
UM, THE NATURE OF THE QUESTIONS, THE NATURE OF THE DISCUSSION, THE DETAIL IS INCREDIBLY IMPORTANT TO HELP GUIDE STAFF AND TO SHAPE BUDGETS THAT ARE AT THE SAME TIME WHAT IS NECESSARY, AND THEN AT THE SAME TIME, WHAT ARE DEFENSIBLE AND ABLE TO COMMUNICATE THE VALUE THAT WE PROVIDE TO THE COMMUNITY.
SO ALL OF THOSE COMMENTS ARE WELCOME, AND I HOPE THAT IN OUR INITIAL EFFORTS, WE BEGIN TO GIVE YOU SOME SHAPE OF SOME OF THE CHALLENGES.
I WANT TO LET YOU KNOW THAT AS WE LOOK TO MAY 28TH OR THE NEXT PLANNING SESSION, I'M ALREADY WORKING WITH STAFF TO SEE IF INDEED SOME OF THE ELEMENTS OF EFFICIENCIES CAN BE BROUGHT FORWARD TO PROVIDE AT LEAST SOME RELIEF IN ONE OR MORE AREAS OF THE BUDGETS FOR THE THREE FUNDS.
SO WE'LL BE WORKING IN TO SEE WHAT OPPORTUNITIES EXIST THERE.
UM, THAT NOT WITHSTANDING, I THINK THAT YOU HAVE NOW AN UNDERSTANDING OF WHAT YOU INHERENTLY MIGHT WANT TO DISCUSS AS YOU GO INTO YOUR STRATEGIC PLANNING PROCESS, AS TO FUTURE BUDGETS AND CHALLENGES COMING FORWARD.
WHAT GUIDANCE DO YOU WANT TO GIVE THAT YOU CAN IN A STRATEGIC PLANNING PROCESS THAT HELPS SHAPE THE FORMATION OF THE, OF THE BUDGET OVERALL EACH AND EVERY FISCAL YEAR? I I THINK THAT THERE IS A GREAT OPPORTUNITY THERE, UM, IN YOUR DELIBERATIONS TO GIVE DIRECTION UPFRONT AND ALLOW US TO SHAPE A BUDGET WITH YOUR GUIDANCE UPFRONT SO THAT YOU HAVE ALREADY A SENSE WHEN WE BEGIN THE BUDGET, WHEN WE PREPARE THE BUDGETS, YOU HAVE A SENSE THAT YOUR DIRECTION HAS BEEN TAKEN INTO ACCOUNT AS, AS WE COME FORWARD.
UH, AS CHAIR, AS YOU KNOW, I SHARE YOUR ENTHUSIASM FOR A, UH, UH, BOARD THAT IS PARTICIPATING AND ACTIVE AND INTERESTED.
AND I, I, I SHARE THAT ENTHUSIASM.
UM, I, I CAN SHARE THAT I'M, I'M SURE THE BOARD IS ALSO LOOKING FORWARD TO THE OPPORTUNITIES THAT YOU SPEAK OF, UH, UH, PRESENTING, UH, AT OUR NEXT MEETING, UH, BUDGETARY OPPORTUNITIES.
UH, ARE THERE ANY PUBLIC COMMENTS? UH, THANK YOU TO THE FINANCE TEAM, EVERYBODY FOR, UH, FOR ROLLING THIS OUT.
I KNOW IT TAKES A TREMENDOUS AMOUNT OF WORK.
UM, AND, UH, LOOKING FORWARD TO, TO HEARING MORE IN THE FUTURE.
UM, SO WE'VE GOT A MOTION TO RECEIVE AND FILE ALL THOSE IN FAVOR, PLEASE SAY AYE.
[14. 26-55124 Recommendation to receive and file April 16, 2026 Planning Committee Report. Suggested Action: Approve recommendation. ]
AND FILE THE APRIL 16TH, 2026 PLANNING COMMITTEE REPORT.AND THAT WOULD BE UP TO THE COMMITTEE CHAIR, WHICH IS ME.
SO, UH, ON APRIL 26TH, UH, THE PLANNING COMMITTEE MET, UH, TO RECEIVE UPDATES ON CAMPUS REALIGNMENT AND MODERNIZATION.
UH, WE ALSO HEARD ABOUT THE ORANGE AVENUE TRANSMISSION MAIN, UH, UH, PIPE BURSTING PROJECT, WHICH IS FASCINATING, AND THE GROUNDWATER AUGMENTATION AND NEW WELL SITE STUDY.
[01:50:01]
RECEIVED AND FILED AN UPDATE ON THE CAMPUS REALIGNMENT AND MODERNIZATION PROJECT.UH, SUPER INTERESTING, SUPER EXCITING.
UH, STAFF PRESENTED STRATEGIC FRAMEWORKS RELATED TO DESIGN, LAND MANAGEMENT, FISCAL IMPACTS, ALONG WITH PRELIMINARY COST SCENARIOS, LAND LEASE AND SALE OPTIONS, AND POTENTIAL P THREE OPPORTUNITIES.
UH, THE COMMITTEE DISCUSSED SURPLUS LAND CONSIDERATIONS, REDEVELOPMENT REQUIREMENTS, UH, AND PROJECT SIZING.
UH, IT'S AN ONGOING, UH, ENDEAVOR.
LOOKING FORWARD TO THE NEXT PLANNING COMMISSION OR PLANNING COMMITTEE MEETING, UH, WHICH I BELIEVE IS COMING UP, UH, IN JUNE.
UM, STAFF WILL RETURN TO THE FULL BOARD AT OUR NEXT MEETING, MAY 28TH, UH, WITH ADDITIONAL UPDATES AND RECOMMENDATIONS FOR THE ENTIRE COMMISSION TO HEAR.
UH, THE COMMITTEE ALSO RECEIVED AND FILED AN UPDATE ON THE ORANGE AVENUE TRANSMISSION, MAINE PIPE BURSTING PROJECT, WHICH UTILIZES A NEW APPROACH TO PIPE REPLACEMENT, UH, NEW TO LONG BEACH, UH, KNOWN AS PIPE BURSTING TECHNOLOGY IN PLACE OF THE TRADITIONAL OPEN TRENCH METHODS.
THE PROJECT WAS PROMPTED BY THE SIGNIFICANT 2024 ORANGE AVENUE PIPE FAILURE AND PRIOR LEAK HISTORY CONSTRUCTION WITH THE NEW TECHNOLOGY IS EXPECTED TO BEGIN FOLLOWING BIDDING NEXT MONTH, AND IS ANTICIPATED TO LAST APPROXIMATELY THREE MONTHS.
UH, THE COMMITTEE ALSO FINALLY, UH, RECEIVED AND FILED A DETAILED STATUS UPDATE ON THE WATER AUGMENTATION PLAN, INCLUDING UPDATES ON GROUNDWATER MODELING, NEW WELL OPPORTUNITIES IMPACT TO PURE WATER, SOUTHERN CALIFORNIA PROJECT INFRASTRUCTURE CONDITIONS, AND RELATED TECHNICAL AND RISK MANAGEMENT CONSIDERATIONS.
UH, THE WATER AUGMENTATION PLAN IS ANTICIPATED TO BE, UH, COMPLETED THIS FALL.
UH, THE COM, UH, COMMITTEE WOULD LIKE TO RECOGNIZE AND THANK OUR SENIOR DIRECTOR OF ENGINEERING, THOMAS ECKLE, UH, UH, AND HIS TEAM FOR THEIR TREMENDOUS WORK, ESPECIALLY RELATED TO THE CAMPUS REALIGNMENT PROJECT.
AND THAT CONCLUDES, UH, MY CHAIR REPORTS.
UM, ARE THERE ANY PUBLIC COMMENTS? UH, I'M SORRY.
UH, SO, UH, UH, MAY I PLEASE RECEIVE A, OR PLEASE HAVE A MOTION TO RECEIVE A FILE.
UH, I'VE ASKED FOR PUBLIC COMMENTS.
UH, ALL THOSE IN FAVOR TO RECEIVE AND FILE SAY AYE.
ANY OPPOSED? ALRIGHT, THANK YOU.
UH, AND FINALLY, ITEM NUMBER 15, RECEIVE
[15. 26-55125 Recommendation to receive and file the General Manager’s Report. Suggested Action: Approve recommendation. ]
AND FILE THE GENERAL MANAGER'S REPORT.MAY I PLEASE HAVE A MOTION TO RECEIVE AND FILE.
YEAH, JUST, UH, THREE CRITICAL ARTICLES, I THINK THAT GIVE YOU SOME PERSPECTIVE, UH, IN THIS CASE, WHAT'S HAPPENING IN THE AREA OF WATER AMONGST THE, UH, FAMILY OF MEMBER AGENCIES IN SOUTHERN CALIFORNIA.
UM, LIKE ANY FAMILY, WE DISCUSS AND DEBATE THINGS.
LOS ANGELES LIKES TO DISCUSS AND DEBATE ITS SOURCES OF WATER SUPPLY AS RELIABLE AND LOCAL SUPPLY.
UM, IT BELIES THE FACT THAT ONE OF THEIR SOURCES OF QUOTE UNQUOTE LOCAL SUPPLY IS AN AQUEDUCT TO THE OWENS VALLEY.
AND SO, WHEN WE HAVE OUR DISCUSSIONS OF WHAT IS HAPPENING IN SOUTHERN CALIFORNIA WATER, UH, I GAVE YOU THIS ARTICLE, UH, WHICH IS ACTUALLY FROM LOS ANGELES, DEPARTMENT OF WATER AND POWER, TO GIVE YOU A HIGHLIGHT THAT LIKE ANY AQUEDUCT, DEPENDING ON SNOWPACK IN THE SIERRAS, IT IS SUFFERING THE EFFECTS OF CLIMATE CHANGE AS WELL.
UH, THIS IS INCREDIBLY IMPORTANT TO SOUTHERN CALIFORNIA BECAUSE AS LOS ANGELES GOES WITH THE LA AQUEDUCT, IT THEN TURNS TO METROPOLITAN AND SWINGS ITS DEMANDS ONTO METROPOLITAN, UH, MEANING THAT EVERYBODY ELSE FEELS THAT EFFECT.
SO THAT GIVES YOU SOME PERSPECTIVE ON L-E-D-W-P.
THE SECOND ARTICLE IS THE ONE THAT IS PERHAPS, UM, A BIT WONKY IN TERMS OF CLIMATE SCIENCE, UH, BUT IT IS INCREDIBLY IMPORTANT TO THE ACTIVITIES THAT DIRECTOR CORDERO IS ENGAGED IN ON THE COLORADO.
AND THAT IS THE FACT THAT THE SCIENCE CONTINUES TO POINT TO DRAMATICALLY CHANGING CONDITIONS ON THE COLORADO RIVER THAT ARE DIFFERENT THAN THE HISTORICAL SEQUENCE STATING BACK TO THE START OF THE 20TH CENTURY.
THE REASON THAT'S IMPORTANT IS BECAUSE IN THE QUESTION OF SIMPLE MATH, IT BECOMES AN ISSUE OF WHETHER THERE'S ENOUGH WATER COMPARED TO EVERYTHING THAT PEOPLE ASSUMED IN THE PAST A HUNDRED YEARS.
CAN YOU ACTUALLY SAY THAT THERE'S ENOUGH WATER GOING FORWARD FOR YOU TO DIVVY UP IN THE FIRST PLACE, TO DIVIDE AMONGST THE INTERESTS? AND THIS IS A, A SCIENCE ARTICLE GIVES YOU A LITTLE BIT BACKGROUND ON THAT.
AND THEN, UH, JUST AT THE TIME THAT I WAS MEETING THE DEADLINES FOR PUBLICATION TO THE BOARD, THE LOWER BASIN STATES OFFERED A PROPOSED PLAN TO MANAGE COLORADO RIVER FLOWS IN THE NEAR TERM TO ALLOW FOR CONTINUING DISCUSSIONS.
TIME AND TIME AGAIN, THE NEGOTIATIONS HAVE REACHED STALEMATE AND DEADLINES HAVE COME AND GONE.
THIS IS AN OFFER, UNILATERAL OFFER BY THE LOWER BASIN
[01:55:01]
STATES TO TRY TO MANAGE THEIR ACTIONS WITHIN THEIR SPHERE AS A WAY OF EXTENDING THE TIMEFRAME FOR DISCUSSIONS THAT IS IMPORTANT.TWO KEY ASPECTS TO THAT IS THAT SOUTHERN CALIFORNIA, PARTICULARLY METROPOLITAN, BELIEVES THAT IT HAS A RANGE OF ACTIONS WITHIN ITS POWER THAT ALLOW IT TO MAKE THESE TYPES OF COMMITMENTS IN THE SHORT TERM TO EXTEND THE DEADLINE FOR NEGOTIATIONS.
THE TWO KEY ELEMENTS ARE IMPORTANT IN THAT OFFER.
ONE IS THAT THE LAKE MEAD ELEVATIONS CONTAIN A PROVISION OF INTENTIONALLY CREATED SURPLUS AMOUNTS.
SO LITERALLY THE LAYERS OF WATER IN THE RESERVOIR, THE TOP MOST ONE AT THE SERVICE THAT YOU SEE IS A CERTAIN DEPTH OF WATER THAT WAS INTENTIONALLY CREATED, SO TO SPEAK, BY METROPOLITAN OVER YEARS AND YEARS OF EFFORTS, THE RATIONALE HAS GONE FORWARD BY THE FEDERAL GOVERNMENT THAT ONCE LAKE MEAD DROPS BELOW A CERTAIN ELEVATION, ACCESS TO THOSE SUPPLIES IS CURTAILED.
YOU ARE NOT ABLE TO ACCESS THAT UNLESS YOU HAVE A HEALTHY BALANCE IN THE RESERVOIR.
ONCE IT GETS CRITICAL, THE ANSWER IS NO.
MY UNDERSTANDING IS METROPOLITAN IS SAYING THE WAY IT CAN MANAGE SHORT-TERM SUPPLIES IS IF THE USBR GRANTS A WAIVER AND ALLOWS IT TO ACCESS THOSE SUPPLIES.
IN ADDITION TO THAT, THE CONSERVATION ACTIONS THAT THE LOWER BASIN IS OFFERING, THOSE ARE NOT FREE.
THEY'RE ASKING FOR CON UH, COMPENSATION FROM THE FEDERAL GOVERNMENT TO SUPPORT THOSE PROGRAMS. WITH THAT SAID, IF THE BUREAU AND THE FEDERAL GOVERNMENT ARE WILLING TO DO THAT, THERE IS AN OPENING TO GET SOME BREATHING ROOM AND CONTINUE THE EXTENDED DISCUSSIONS OUT INTO 2028.
HOW DID I DO COMMISSIONER CORDERO? YEAH.
DID THAT COVER I THINK THAT THAT'S THE KEY ESSENCE OF WHERE METROPOLITAN IS, CORRECT? RIGHT.
I'M HAPPY TO ENTERTAIN ANY QUESTIONS YOU MIGHT HAVE JUST AS A QUICK FOLLOW UP.
THAT WAS, YOU WERE PRETTY VERY COMPREHENSIVE ON THAT.
UM, WELL, I ASKED THE QUESTION AT METROPOLITAN.
WE HAD OUR LAST BRIEFING ON THE COLORADO RIVER, WHICH I'VE BEEN FORTUNATE TO BE NOT IN THE NEGOTIATIONS, BUT AT THE, AT IN THE BOARDROOM WITH, UH, COLORADO.
WE HAD A MEETING YESTERDAY IN PALM DESERT, AND I ASKED THE QUESTION IS, IS THERE STILL A POSSIBILITY OF A SEVEN STATE AGREEMENT? AND ASHANTI ROSET SAID, NO, IT DOESN'T APPEAR TO BE, AND I DON'T THINK THE BUREAU IS NECESSARILY BANKING ON THAT.
SO, UM, WE'RE, WE'RE PRETTY MUCH REACHING THE END.
UM, AND THERE'S, UH, WHAT HAS HAPPENED IS, AS HE SAID, SAID, THE LOWER BASIN HAS SUBMITTED A PROPOSAL, UM, IF THEY GO ALONG WITH IT, THEN WE CAN PROCEED.
IT DOESN'T MEAN THERE'S GONNA BE ANY ADDITIONAL WATER.
SO THERE WILL BE SHORTAGES, AND THEN WE'LL HAVE TO DEAL WITH THAT IN THE CALIFORNIA DELEGATION AS TO HOW WE, HOW WE DO THAT.
THERE'S NUMBERS THAT HAVE ALREADY BEEN ADDRESSED ON THAT, BUT AS YOU KNOW, THERE'S ALWAYS, YOU KNOW, WHEN YOU SIT AT THE TABLE AND FINALIZE IT, THERE MAY BE SOME, UH, SOME ISSUES THERE.
UM, MEXICO IS, I KEEP ASKING ABOUT MEXICO, AND WHAT I'M TOLD IS THAT WE AS STATES DON'T REALLY HAVE THE ABILITY TO WORK WITH THEM.
IT'S REALLY DONE AT THE FEDERAL LEVEL.
UM, AND AS WELL AS TRIBES WHO, TRIBES GET MIXED IN THERE AND THEY'RE DEALING WITH THEIR OWN STATE.
SO, UM, TRIBAL, MOST OF THEM ARE IN ARIZONA, AND SO THEY'RE HAVING TO DEAL WITH THE, UH, THE ARIZONA DELEGATION AS WELL.
AND SO, UM, NEWS AT 11, TOUGH ONE, UH, WE'RE HOPING IT WON'T GO TO LITIGATION, THAT, THAT'S, THERE IS NO WIN.
AND WE'VE HAD SOMEBODY ON OUR BOARD WHO JUST KIND OF COLORADO RIVER BOARD, LET'S JUST LET IT GO TO LITIGATION BECAUSE THEY WANNA FALL ON THE LAW OF THE RIVER.
BUT AS YOU WOULD KNOW BETTER THAN ANYBODY, LITIGATION DOESN'T.
IT TAKES SO LONG, IT'S GONNA TAKE SO LONG.
IN THE MEANTIME, WE HAVE TO DEAL WITH WHAT'S, WHAT'S PRESENTED IN FRONT OF US.
ANY ADDITIONAL COMMENTS ON THE GENERAL MANAGER'S REPORT? ALRIGHT, UH, ANY PUBLIC COMMENTS? ALRIGHT, WE'VE GOT A MOTION TO RECEIVE AND FILE ALL THOSE IN FAVOR, PLEASE SAY AYE.
UH, IS THERE ANYONE WISHING TO SPEAK ON A NON AGENDA ITEM? ALL RIGHT.
SEEING NONE, THE PUBLIC COMMENT PERIOD IS NOW CLOSED.
UH, I'VE GOT A REAL, I'LL TRY TO MAKE A BRIEF, UH, TO MY FELLOW COMMISSIONERS.
UH, I JUST WANNA BRIEFLY NOTE THAT THE STRATEGIC PLANNING PROCESS FOR EMERGE UTILITY IS, IS UNDERWAY.
UH, THIS EFFORT COMES AT AN ESPECIALLY IMPORTANT TIME, UH, FOR THE ORGANIZATION AS WE CONTINUE TO MATURE AND INVOLVE FOLLOWING THE MERGER OF OUR, OF OUR UTILITY.
UH, THIS STRATEGIC PLAN WILL HELP ESTABLISH A SHARED LONG-TERM VISION, ALIGN ORGANIZATIONAL PRIORITIES, GUIDE THE INVESTMENT OPERATIONAL DECISIONS, AND ENSURE THAT THE BENEFITS OF THE MERGER ARE FULLY REALIZED FOR OUR CUSTOMERS, EMPLOYEES, THE COMMUNITY.
UH, IT WILL ALSO PROVIDE A FRAMEWORK, UH, FOR ACCOUNTABILITY BY CONNECTING OUR GOALS, UH, PERFORMANCE MEASURES AND, AND FUTURE INITIATIVES.
[02:00:01]
UH, I WANT TO THANK IN ADVANCE, UH, TONY FOSTER STILL HERE.I SEE, UH, SENIOR DIRECTOR OF UTILITY BUSINESS SERVICES FOR LEADING THIS SIGNIFICANT WORK AHEAD.
UH, I ESPECIALLY LOOK FORWARD TO THE BOARD'S ENGAGEMENT THROUGHOUT THE PROCESS.
I THINK THAT'S GOING TO BE EXTREMELY IMPORTANT, UH, AS WE HELP SHARE, UH, UH, SORRY, AS WE HELP SHAPE THE NEXT CHAPTER OF LONG BEACH UTILITIES.
UM, SO IN ORDER FOR THE BOARD'S PRIORITIES TO BE REC PRIORITIES TO BE RECOGNIZED, UH, DURING THE DEVELOPMENT OF THE STRATEGIC PLAN, I BELIEVE IT'S CRITICAL, UH, THAT, UH, WE CREATE AN OPEN, HONEST, TRANSPARENT LINK DIRECTLY BETWEEN THE BOARD AND THE STRATEGIC PLAN TEAM, UM, UH, IN THAT ENDEAVOR.
AND PURSUANT TO THE AUTHORITIES, BOARDS, COMMISSIONS AND COMMITTEES HANDBOOK, UH, AT OUR UPCOMING MAY 28TH BOARD MEETING, UH, I WOULD LIKE TO APPOINT MYSELF TO SERVE AS A TEMPORARY AD HOC, UH, COMMITTEE ON THIS MATTER, UH, UH, BRIDGING THE GAP BETWEEN THE BOARD AND THE FOLKS THAT ARE, THAT ARE HELPING TO SHAPE OUR STRATEGIC PLAN.
UH, I'LL BE ASKING YOU FOR YOUR SUPPORT AT THAT TIME.
UH, THAT REQUEST IS SUBJECT TO, UH, COMMISSION VOTE.
UH, ARE THERE ANY OTHER ANNOUNCEMENTS? YES, MA'AM.
NOT RELATIVE TO THIS, BUT, UM, I PROBABLY SHOULD HAVE COME UP BEFORE, BUT I KNOW A LONG TIME AGO DURING I THINK IT WAS MAYBE WELL COVID, WE STOPPED DOING TABLE SPONSORSHIPS, BUT WE'VE ALWAYS DONE, WE NEEDED, WE WANTED TO GO TO A GET A TICKET AND GO.
UM, I'M ASKING BECAUSE KIND OF SLIPPED THAT THERE IS A COTTONWOOD EVENT.
I DON'T KNOW IF WE'VE BEEN APPROACHED ON THE COTTONWOOD FOR THE RANCHO LOS ALAMITOS AND THEY'RE RECOGNIZING OUR MAYOR AND HARRY
AND THAT'S THE 21ST OF MAY, CORRECT? WE HAVEN'T BEEN, HAVE NOT BEEN APPROACHED ON SPONSORSHIP.
THE, THE BOARD IS WITHIN ITS DISCRETION.
IF IT WANTS TO, UH, ATTEND THAT EVENT, IT CAN CONTACT DINA AND REQUEST TIC INDIVIDUAL TICKETS TO GO TO THAT.
I THINK THAT'S THE PREVIOUS DIRECTION THAT WE RECEIVED FROM THE BOARD.
JUST REAL QUICK, THANK YOU TO TY AND ADAM.
I HAD A TOUR OF THE SEWER OPERATIONS YESTERDAY.
UM, I GOT TO SEE FOLKS FROM THE ACADEMY OUT THERE WORKING.
IT WAS A GREAT, IT WAS ACTUALLY ALMOST RIGHT IN FRONT OF THE FORMER GENERAL MANAGER'S HOUSE, KEVIN WATT'S HOUSE.
UM, SO NO, THANK YOU VERY MUCH.
SO, UH, I'LL, I'LL JUST ADD THAT I HAD A, A VERY, VERY ENLIGHTENING EXPERIENCE, UH, LAST WEEK WITH THE AQUA CONFERENCE IN SACRAMENTO.
UM, LEARNED SO MUCH, UH, ENGAGED SO MANY FOLKS, UH, ACROSS THE STATE.
UH, GAVE ME A BIG PICTURE VIEW OF, UH, WATER AND, AND OUR PLACE IN THE, THE WHOLE SCHEME OF THINGS.
AND, UM, WE HAVE A, OBVIOUSLY OUR RESPONSIBILITY IS TO THE RATE PAYERS AND THE PEOPLE OF LONG BEACH.
WE, WE DO HAVE A, A GREATER RESPONSIBILITY TO BE CONNECTED TO THE OVERALL, UM, YOU KNOW, WATER WORLD AND INFRASTRUCTURE WITH THE MAJOR PROJECTS, UH, THE STATE WATER PROJECT, UM, AND, UM, THAT ARE MOVING FORWARD.
UM, UNDERSTANDING THE, THE CONNECTION WITH THE DEPARTMENT OF WATER AND POWER SEEMS LIKE, UM, I LEARNED THAT THAT WAS THE HARVARD OF OF WATER BECAUSE JUST ABOUT EVERY OTHER GENERAL MANAGER ACROSS THE STATE HAS WORKED AT BWP AT SOME POINT
UH, BUT, BUT, UH, IT, IT WAS VERY ENLIGHTENING AND, UM, YES, UH, WAS HAPPY TO BE ALONG WITH OUR, OUR GENERAL MANAGER JUST, AND TO, UM, THROUGHOUT THE PROCESS, UM, OR THROUGHOUT THE, THE FEW DAYS OF AQUA.
SO I WANNA THANK THE, THE BOARD, UM, THE, THE DEPARTMENT FOR THE OPPORTUNITY TO, TO GO TO THAT, THAT CONFERENCE, UH, ATTENDED SEVERAL WORKSHOPS.
I DIDN'T WRITE A WRITTEN REPORT, BUT, UH, I'LL SEND YOU GUYS SOMETHING AT SOME POINT NEAR THANK, CAN I JUST FOLLOW UP WITH THAT? THANK YOU FOR BRINGING THAT UP.
AND ALSO, ANTO, WHEN YOU START TALKING ABOUT DEPARTMENT OF WATER AND POWER IN THE CITY OF LOS ANGELES, UM, THERE'S A REALLY GOOD BOOK THAT I'M READING CALLED WATER TO THE ANGELS, AND IT'S WRITTEN BY A LES DAN FORD.
IT STARTS WITH, UH, THE HISTORY OF THE OWENS VALLEY AND MULHOLLAND AND HOW IT MAY HAVE ALREADY HEARD ABOUT THIS, BUT IT'S ACTUALLY VERY INSIGHTFUL ON HOW THE CREATION OF LA AND WATER WAS SO IMPORTANT TO IT.
SO WATER, WATER TO THE ANGELS.
UH, I GOTTA CORRECT SOMETHING.
IT'S NOT THE DEPARTMENT OF WATER POWER, IT'S MET, RIGHT? UH, YES SIR.
AND THANK YOU FOR THE CORRECTION.
UM, BEING A CARDINAL ALUM, WE LIKE TO THINK OF
[02:05:01]
IT AS THE WATER STANFORD OF, UH, OF THE WATER INDUSTRY.BUT, UM, I OFTEN GET CORRECTED BECAUSE THE GENERAL INSIGHT OR THE STEREOTYPE IS WATER.
NOW TO, TO COMMISSIONER AUSTIN'S COMMENT.
SO AT AQUA, IT WAS A GREAT CONFERENCE.
GOVERNOR NEWSOM CAME AND GAVE AN ADDRESS.
UM, THE INSIGHT THERE FROM GOVERNOR NEWSOM IS THAT HIS TENURE IS ENDING, UH, THE DELTA CONVEYANCE PROJECT IS NOT APPROVED IN ITS COMPLETION AND ITS COMPLETENESS.
I WOULD SAY THERE'S STILL A NUMBER OF SIGNIFICANT, UM, ACTIONS THAT REMAIN, UM, THE CURRENT SLATE OF GOV GUBERNATORIAL CANDIDATES HAVE NOT SPOKEN OUT EMPHATICALLY IN ANY DIRECTION ABOUT WATER ITSELF.
UM, THERE'S GENERAL APPREHENSION AT THE CONFERENCE, UH, AMONGST THE MAJOR WATER DISTRICTS AS TO WHAT THIS REPRESENTS GOING FORWARD.
UM, I DON'T KNOW IF YOU RECALL, BUT GOVERNOR, NEW GOVERNOR NEWSOM'S PRESENCE AND DIRECTIVE ON THE DELTA CONVEYORS PROJECT IS BECAUSE GOVERNOR BROWN'S, CALIFORNIA TWIN TUNNELS PROJECTS, WHICH WAS APPROVED, UH, WAS SCRAPPED IN FAVOR OF THIS PROJECT.
AND SO NOW HERE WE GET TO A GUBERNATORIAL TRANSITION AND WE FIND OURSELVES WITH NO APPROVAL ON THIS PROJECT YET.
NOTWITHSTANDING THAT GOVERNOR NEWSOM ADV ADVISED EVERYBODY TO CONTINUE THE EFFORT TO GET THE PROJECT APPROVED.
UH, CARLA NEME, WHO HAD BEEN, UH, GOVERNOR NEWSOM'S WATER CZAR AND WAS ALSO PREVIOUSLY THE HEAD OF THE DEPARTMENT OF WATER RESOURCES, WAS NAMED THE NEW DIRECTOR OF AQUA AQUA IN THE PAST HAS NOT TAKEN POSITIONS ON PROJECTS, BUT IT FINDS ITSELF NOW, UH, PERHAPS WITH THE OPPORTUNITY TO AT LEAST CREATE A SLATE OF PROJECTS THAT IT WOULD IDENTIFY AS PRIORITIES.
UM, ALSO IN THE TIMEFRAME, UH, SINCE WE LAST MET, UH, THE NEW GENERAL MANAGER OF METROPOLITAN WATER DISTRICT, SHAJI DESMO, UH, WAS, UH, WAS GIVEN THE OPPORTUNITY TO PRESENT TO THE BOARD, UM, HIS VISION FOR THE AGENCY GOING FORWARD.
UH, SO WE WERE INVITED AND ATTENDED.
DIRECTOR CORDERO WAS THERE AS WELL.
I'LL JUST SUMMARIZE IT, THAT, UH, THE GENERAL MANAGER CONVEYED THE IMPORTANCE OF THE BUDGET THAT HAD JUST BEEN APPROVED BY METROPOLITAN WITH THE DIRECTIVES THAT IT SET UP.
AND HE ALSO IDENTIFIED THAT IN TERMS OF LONG RANGE PLANNING, THERE IS SIGNATURE LONG RANGE PLAN.
THE CAPITAL WATER PROCESS NEEDS TO BE COMPLETED AND GIVE GUIDANCE TO WHAT IS CONTINUING TO BE ACKNOWLEDGED.
THREE MAJOR DECISIONS COMING BEFORE THE BOARD, THE PURE WATER SOUTHERN CALIFORNIA PROJECT, THE SITE'S RESERVOIR PROJECT, AND ULTIMATELY THE HEALTH CONVEYANCE PROJECT IN A FAIRLY SHORT ORDER SEQUENCE.
UH, OVER THE COURSE OF THE NEXT TWO CALENDAR YEARS, METROPOLITAN WILL FIND ITSELF WITH CRITICAL VOTES AND DECISIONS ON THOSE PROJECTS.
ANY COMMENTS ON THE COMMENTS? CAN I JUST FOLLOW UP ON THAT? THANK YOU.
AND, UM, JUST REAL QUICK, THE BUDGET AT METRICAL.
FIRST OF ALL, SHAJI IS DOING A GREAT JOB.
WE'RE, I HAVE TO TELL YOU, THAT WAS A UNANIMOUS VOTE TO, TO BRING HIM ON A LOT OF DE DELIBERATION AND DISCUSSION BEFORE, BUT HE WAS UNANIMOUS IN OUR SELECTION.
UH, THERE'S A LOT OF SUPPORT FOR HIM.
AS YOU KNOW, WE WENT THROUGH A REALLY HARD TIME SEVERAL YEAR, A COUPLE YEARS AGO.
UM, THE BOARD WAS DIVIDED, THE STAFF WAS DIVIDED.
IT WAS JUST A TOUGH, TOUGH TIME.
UM, I, I HAVE TO SAY A DON ORTEGA, OUR CHAIR, HAS DONE A REALLY GOOD JOB OF TRYING TO BRING PEOPLE TOGETHER.
UM, HE'S, I THINK HE'S DONE A GREAT JOB ON THAT.
SO MUCH SO THAT WE HAD DELIBERATION ON OUR BIENNIAL BUDGET FOR METROPOLITAN.
IT WAS ACTUALLY AROUND ABOUT A YEAR.
UM, PURE WATER WAS ONE OF THE THINGS THAT WAS ON THERE AND THEN WAS AN OFF.
THEY WEREN'T SURE IF THEY WANTED TO FULLY FUND IT.
AND THERE WAS CONSERVATION ISSUES AND CIP ISSUES, BUT AT THE END OF THE DAY, THE BUDGET WAS APPROVED, IT WAS UNANIMOUS, AND THERE WAS ACTUALLY APPLAUSE IN THE ROOM AFTER WE, WE, UH, WE APPROVE THAT BUDGET.
SO WE'RE VERY HAPPY ABOUT THAT.
AND AGAIN, UM, KUDOS GOES TO A LOT OF THE PEOPLE AT, AT MET WHO WORKED ON THAT, THE BOARD WHO'S COME TOGETHER ON THAT, AND THE LEADERSHIP OF OUR GENERAL MANAGER AND SHAJI.
[PUBLIC COMMENT]
ALRIGHT, I WILL CLOSE THEN WITH A REMINDER, UM, AT, UH, LET'S SAY 1115.WE'VE GOT OUR, UH, RESOURCES COMMITTEE.
UH, UH, VICE PRESIDENT CORDERO IS THE COMMITTEE CHAIR AND, AND COMMISSIONER AUSTIN, UH, IS THE COMMITTEE MEMBER.
UM, I MAY BE OFF A LITTLE BIT ON THIS, BUT WATER SUPPLY UPDATES, URBAN WATER MANAGEMENT PLAN, UH, PURE WATER, SOCAL, AT LEAST THOSE WERE PRELIMINARY THOUGHTS PREVIOUSLY.
WE'LL, I, I'M NOT SURE WHAT THE AGENDA IS, BUT NOT PURE WATER.
UH, SO IF YOU'RE INTERESTED, STICK AROUND.
[ADJOURNMENT]
THIS MEETING IS ADJOURNED.