* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. ALRIGHT, WE ARE BACK. [00:00:01] WELCOME TO THE SPECIAL MEETING OF THE PROPOSITION TWO 18. AGAIN, IT'S AUGUST 27TH. THIS MEETING IS NOW CALLED TO [CALL TO ORDER] ORDER. UH, DINA, MAY WE PLEASE [ROLL CALL] HAVE ROLL CALL VICE PRESIDENT SCOTT, I'M SORRY, PRESIDENT SCOTT. PRESENT. VICE PRESIDENT CORDERO. HERE. SECRETARY PARKIN. HERE. COMMISSIONER MCGUIRE HERE. AND COMMISSIONER AUSTIN HERE. THANK YOU. WE HAVE A QUORUM. THANK YOU. BEFORE WE BEGIN TONIGHT'S UH, AGENDA, I'D LIKE TO ASK GENERAL MANAGER ANATOL FAGAN TO BRIEFLY EXPLAIN WHAT WE CAN EXPECT THIS EVENING. UH, ANATOL. YES. THANK YOU PRESIDENT SCOTT. UM, LIKE I WAS, UH, LIKE YOU HAD INDICATED, I JUST WANTED BEFORE WE START THE AGENDA ITEMS, UM, WANTED TO GIVE A BRIEF OVERVIEW OF WHAT TO EXPECT TONIGHT. FIRST AND FOREMOST, THE BOARD IS GOING TO CONSIDER AN OBJECTION, THE OBJECTION MADE PURSUANT TO AB 2257, THIS PROCEDURE. THESE ARE OBJECTIONS LEGALLY CHALLENGING THE PROPOSED SEWER AND WATER RATES AS VIOLATING PROPOSITION TWO 18. IF AFTER CONSIDERATION OF THE OBJECTIONS THE BOARD DETERMINES TO PROCEED WITH THE PROP TWO 18 HEARING, THE HEARING WILL BE HELD. THE PURPOSE OF THE PROP TWO 18 IS TO GIVE RATE PAYERS AN OPPORTUNITY TO COMMENT AND OR PROTEST ON THE NEW WATER AND SEWER RATES. FOR THOSE IN THE AUDIENCE, PLEASE BE AWARE THAT ONLY WRITTEN PROTESTS WILL BE COUNTED TOWARDS THE MAJORITY PROTEST CALCULATION. YOU MAY MAKE PUBLIC COMMENT, BUT IF YOU ONLY PROTEST THE RATES ORALLY, IT WILL NOT COUNT. SO IF YOU HAVE NOT YET SUBMITTED A WRITTEN PROTEST AND YOU WOULD LIKE IT TO COUNT TOWARDS THE MAJORITY PROTEST, WE HAVE CARDS THAT YOU CAN COMPLETE RIGHT NOW OVER TO THIS SIDE OF THE ROOM. PLEASE FILL ONE OUT AND SUBMIT IT TO THE BOARD EXECUTIVE ASSISTANT BEFORE THE CLOSE OF THE PROTEST PERIOD. ALSO, IF YOU HAVE A CONCERN OR AN ISSUE THAT IS NOT RELATED TO THE PROPOSED WATER AND SEWER RATES, PLEASE KNOW THAT STAFF IS AVAILABLE TO SPEAK WITH YOU AND HEAR YOUR CONCERNS AFTER THE HEARING, PRESIDENT SCOTT, WE ARE NOW READY TO PROCEED WITH THE AGENDA. THANK YOU, GENERAL MANAGER FIAN. SO, REGULAR ITEM, UH, REGULAR AGENDA [1. 26-55921 Consider the timely written objections by ratepayers to the proposed water and sewer rate schedules for Fiscal Year 2026-2027 and the corresponding Long Beach Public Utilities Department’s responses, and make the determination to proceed with the Proposition 218 protest hearing pursuant to the requirements of Government Code Section 53759.1.       Suggested Action: Approve recommendation. ] ITEM NUMBER ONE, CONSIDER THE TIMELY WRITTEN OBJECTIONS BY RATE PAYERS TO THE PROPOSED WATER AND SEWER RATE SCHEDULES FOR FISCAL YEAR 20 26, 20 27, AND THE CORRESPONDING LONG BEACH PUBLIC UTILITIES DEPARTMENT RESPONSES AND MAKE THE DETERMINATION TO PROCEED WITH PROPOSITION TWO 18 PROTEST HEARING PURSUANT TO THE REQUIREMENTS OF GOVERNMENT CODE SECTION FIVE THREE SEVEN FIVE NINE ONE. CALL ON UH, UH, UH, ASSISTANT CITY ATTORNEY DEPUTY. DEPUTY CITY ATTORNEY MARSHA YDA. GOOD EVENING, PRESIDENT SCOTT AND COMMISSIONERS. I'M DEPUTY CITY ATTORNEY MARSHA YDA, AND I'M GOING TO GIVE YOU A BRIEF OVERVIEW OF ASSEMBLY BILL 2 2 5 7 AND THEN A SUMMARY OF THE WRITTEN OBJECTIONS AND RESPONSES MADE. PURSUANT TO THAT BILL AB 2 2 5 7 OUTLINES AN OPTIONAL PROCESS WHEREBY LOCAL AGENCIES SUCH AS THE LONG BEACH UTILITIES, UH, PUBLIC UTILITIES DEPARTMENT, CAN ESTABLISH AN EXHAUSTION OF ADMINISTRATIVE REMEDIES. PROCEDURE FOR PROPOSED WATER AND SEWER RATES. THAT BILL TOOK EFFECT ON JANUARY 1ST, 2025. THE PROCEDURE CREATED BY THIS ACT IS INTENDED TO PROVIDE AN OPPORTUNITY FOR A RATE PAYER TO OBJECT TO THE PROPOSED WATER AND OR SEWER RATES AND ALLOW THE LOCAL AGENCY THE OPPORTUNITY TO RESOLVE THE OBJECTION BEFORE THE NEW RATES ARE APPROVED. THIS IS WHAT'S KNOWN AS AN EXHAUSTION OF ADMINISTRATIVE REMEDIES BEFORE SOMEONE CAN SUE OVER THE PROPOSED WATER AND SEWER RATE INCREASES. THIS PROCEDURE AIMS TO FOSTER TRANSPARENCY AND REDUCE LITIGATION RISKS. PLEASE NOTE THAT THIS PROCEDURE IS SEPARATE FROM THE PROP TWO 18 MAJORITY PROTEST HEARING, WHICH IS SCHEDULED TO PROCEED UPON COMPLETION OF THIS AGENDA ITEM UNDER PROP TWO 18, RATE PAYERS CAN SUBMIT PROTESTS TO THE PROPOSED RATES. IF MAJORITY OF PROTESTS ARE RECEIVED, THE CITY CANNOT MOVE FORWARD WITH THE PROPOSED WATER AND SEWER RATES. PROTESTS COUNTING TOWARD THE MAJORITY MUST BE IN WRITING AND CAN BE MADE THE SAME DAY AS THE PROP TWO 18 HEARING UNDER AB 2 2 57. HOWEVER, RATE PAYERS CAN SUBMIT OBJECTIONS TO PRESERVE THEIR RIGHT TO SUE THE CITY ON THE RATES IF THE RATES ARE ADOPTED. THE OBJECTIONS MUST BE IN WRITING AND MUST BE SUBMITTED BY THE DEADLINE DETERMINED BY THE LOCAL AGENCY IN THIS CASE AUGUST 20TH, 2026 AT 5:00 PM SO LAST YEAR THERE APPEARED TO BE SOME CONFUSION OVER A PROP TWO 18 PROTEST AND THE AB 2 2 5 7 WRITTEN OBJECTION. SO THIS YEAR THE LONG BEACH UTILITIES DEPARTMENT INCLUDED [00:05:01] WITH THE PROPOSITION TWO 18 HEARING NOTICE TWO SEPARATE FORMS THAT RATE PAYERS COULD COMPLETE IN ORDER TO SUBMIT A VALID PROTEST AND OR OBJECTION. USE OF THE PROTEST FORM IS OPTIONAL AND WAS MEANT TO MAKE IT EASIER FOR RATE PAYERS TO PROTEST. WRITTEN PROTESTS THAT DID NOT USE THE FORM WILL STILL BE COUNTED TOWARD THE MAJORITY PROTEST AND THE AB 2 2 5 7 OBJECTION FORM INCLUDED INSTRUCTIONS ON HOW TO SUBMIT A VALID OBJECTION PER AB 2 2 57. THE LONG BEACH UTILITIES DEPARTMENT MUST RESPOND IN WRITING TO TIMELY SUBMITTED OBJECTIONS, INCLUDING GROUNDS FOR WHY A CHALLENGE IS NOT RESULTING IN AMENDMENTS TO THE PROPOSED FEES. THE LONG BEACH UTILITIES DEPARTMENT MUST PRESENT THE OBJECTIONS AND WRITTEN RESPONSES TO THIS BOARD FOR CONSIDERATION. THE BOARD HAS THE OPTION TO MAKE ANY OF THE FOLLOWING FOR DETERMINATIONS. ONE, THEY CAN SEEK CLARIFICATION ON THE PROPOSED RATE CHANGES. THEY CAN REDUCE THE PROPOSED RATE CHANGES, THEY CAN TABLE THE ITEM FOR FURTHER CONSIDERATION AT A FUTURE MEETING OR THEY CAN PROCEED WITH THE PROP TWO 18 PROTEST HEARING. SO THE ITEM BEFORE THE BOARD RIGHT NOW IS A NARROW ONE. IT IS TO CONSIDER THE TIMELY WRITTEN OBJECTIONS AND THE LONG BEACH PUBLIC UTILITIES DEPARTMENT'S RESPONSES AND THEN TO DECIDE IF THE BOARD SHOULD PROCEED WITH THE TOP PROP TWO 18 HEARING OR NOT. THIS YEAR, THE LONG BEACH UTILITIES DEPARTMENT RECEIVED 214 TIMELY WRITTEN OBJECTIONS AND THIS IS ABOUT DOUBLE THE NUMBER OF OBJECTIONS WE RECEIVED LAST YEAR. THE OBJECTIONS AND CORRESPONDING RESPONSES ARE ATTACHED TO THE BOARD LETTER FOR THIS ITEM AT ATTACHMENT TWO. AS WITH LAST YEAR, QUITE A FEW OBJECTIONS FAILED TO SPECIFY GROUNDS BY WHICH THE PROPOSED WATER AND SEWER RATES VIOLATED ARTICLE 13 D OF THE CALIFORNIA CONSTITUTION AND SEVERAL OF THE OBJECTION FORMS SUBMITTED WERE INCOMPLETE AND THEY FAILED TO INCLUDE THE NAME OF THE PARCEL OR OWNER OR THE ADDRESS. AND SEVERAL OF THE OBJECTIONS WERE UNSIGNED. MANY OBJECTIONS MADE CONCLUSORY STATEMENTS THAT SIMPLY STATED THE PROPOSED RATES VIOLATED PROP TWO 18. THESE GENERALLY ALLEGED A LACK OF TRANSPARENCY ABOUT HOW THE RATES WERE ARRIVED AT, THAT THE RATES EXCEEDED THE COST OF SERVICE AND OR THE RATES WERE NOT PROPORTIONAL. THE LONG BEACH UTILITIES DEPARTMENT RESPONDED ACCORDINGLY, DIRECTING THE OBJECTOR TO THE DEPARTMENT'S WEBSITE FOR INFORMATION ON HOW THE RATES WERE DERIVED AND EXPLANATIONS FOR HOW THE RATES DID NOT EXCEED THE COSTS AND WERE PROPORTIONAL. THE OBJECTIONS OVERALL EXPRESSED FRUSTRATION WITH THE INCREASES TO THE WATER AND SEWER RATES SPECIFICALLY THAT WHILE USAGE OF UTILITIES HAS REMAINED THE SAME, THE COSTS CONTINUE TO RISE LEADING TO AFFORDABILITY CONCERNS. WHILE THESE ARE NOT VALID LEGAL OBJECTIONS UNDER PROPOSITION TWO 18, THEY SHOULD BE NOTED BY THE BOARD NONE OF THE TIMELY RECEIVED OBJECTIONS WARRANT CLARIFICATION OF THE PROPOSED RATES REDUCING THE PROPOSED RATES OR FURTHER REVIEW. IT IS THEREFORE RECOMMENDED THAT THE BOARD PROCEED WITH THE PROP TWO 18 HEARING. OH, NEXT SLIDE PLEASE. SO THE RECOMMENDATION IS TO CONSIDER THE TIMELY WRITTEN OBJECTIONS BY RATE PAYERS TO THE PROPOSED WATER AND SEWER RATE SCHEDULES FOR FISCAL YEAR 2026 TO 2027 AND THE CORRESPONDING LONG BEACH UTILITIES DEPARTMENT'S RESPONSES AND TO MAKE THE DETERMINATION TO PROCEED WITH THE PROP TWO, PROPOSITION TWO 18 PROTEST HEARING PURSUANT TO THE REQUIREMENTS OF GOVERNMENT CODE SECTION 5 3 7 5 9 0.1. AND THAT CONCLUDES MY PRESENTATION AND I'M HAPPY TO ANSWER ANY QUESTIONS. THANK YOU, MARCIA, BEFORE WE PROCEED, UH, MAY I PLEASE HAVE A MOTION? SO MOVE. THANK YOU. AND A SECOND. SECOND. THANK YOU. UH, SO JUST TO BE CLEAR, I KNOW THIS CAN BE A LITTLE CONFUSING THIS PART HERE, BUT WE ARE NOT YET AT THE PROP TWO 18 PROTEST HEARING. WE'RE STILL ON AGENDA ITEM NUMBER ONE. I'M GOING TO ASK IF ANYONE HAS ANY PUBLIC COMMENT BASED ON AGENDA ITEM NUMBER ONE IN THE PRESENTATION, UH, THAT WAS, THAT WAS GIVEN TO US BY THE CITY ATTORNEY. OKAY, THANK YOU. UH, ANY COMMISSIONER COMMENTS? ALL RIGHT. SEEING NONE, UH, ALL THOSE IN FAVOR SAY AYE. AYE. NONE OPPOSED. OKAY. UH, BEFORE WE, UH, SO NOW WE'LL, WE'LL BE OPENING OUR, OUR PUBLIC HEARING FOR THE PROP [2. 26-55922 Recommendation to receive supporting documentation into the record on the proposed increase to the City’s Water and Sewer Rates for Fiscal Year 2026-2027; receive public comment pursuant to Proposition 218; and, in the absence of a majority protest, conclude the public hearing.       Suggested Action: Approve recommendation. ] TWO 18 PROTEST. UM, BEFORE WE START, I JUST HAVE A COUPLE OF WORDS JUST TO TO SHARE WITH YOU. SO, ON BEHALF OF THE COMMISSION, I WANT TO THANK ALL OF YOU WHO HAVE TAKEN THE TIME TO BE HERE TONIGHT AND TO PARTICIPATE IN THIS IMPORTANT PUBLIC PROCESS. WE RECOGNIZE THAT WATER RATES DIRECTLY AFFECT EVERY HOUSEHOLD, UM, UH, AND BUSINESS IN OUR COMMUNITY. AND WE UNDERSTAND THAT ANY PROPOSED INCREASE COMES AT A TIME WHEN MANY LONG BEACH RESIDENTS ARE ALREADY FACING HIGHER COSTS AND [00:10:01] CONSIDERABLE ECONOMIC UNCERTAINTY. UH, BEFORE WE BEGIN, I'D LIKE TO OFFER ONE PERSONAL REMINDER. UH, YOUR COMMISSIONERS ARE ALSO LONG BEACH RESIDENTS AND RATE PAYERS. WE LIVE IN THIS COMMUNITY. WE PAY THESE SAME UTILITY BILLS, WE SHARE YOUR CONCERNS ABOUT AFFORDABILITY AND THE CUMULATIVE FINANCIAL PRESSURES FACING OUR FAMILIES, NEIGHBORS BUSINESSES. UH, WE TAKE VERY SERIOUSLY OUR RESPONSIBILITY, UH, TO BALANCE THOSE CONCERNS WITH OUR OBLIGATION TO MAINTAIN A SAFE, RELIABLE, AND FINANCIALLY SUSTAINABLE WATER SYSTEM FOR THE COMMUNITY. WE ALL CALL HOME. WE KNOW THAT SOME OF YOU'RE HERE TONIGHT, UH, SPECIFICALLY TO EXPRESS OPPOSITION TO THE PROPOSED RATES, AND WE WELCOME YOUR PARTICIPATION. WHETHER YOU SUPPORT THE PROPOSAL, OPPOSE IT OR SIMPLY HAVE CONCERNS YOU WOULD LIKE PLACED ON THE RECORD. WE APPRECIATE HEARING FROM YOU AND ASK ONLY THAT WE CONDUCT TONIGHT'S HEARING WITH THE MUTUAL RESPECT THAT OUR COMMUNITY DESERVES. UH, I ALSO WANT TO CLARIFY ONE ASPECT OF TONIGHT'S PROCESS, UH, THAT CAN SOMETIMES BE FRUSTRATING FOR MEMBERS OF THE PUBLIC DURING THE PUBLIC COMMENT PORTION OF THIS PROP TWO 18 HEARING COMMISSIONERS WILL LISTEN CAREFULLY TO YOUR CONCERNS AND COMMENTS, BUT WE WILL NOT BE ABLE TO ENGAGE IN A QUESTION AND ANSWER DIALOGUE, UH, OR RESPOND TO QUESTIONS POSED DURING YOUR REMARKS. IF YOU COULD KEEP THAT IN MIND, THAT WOULD BE HELPFUL. UH, I KNOW THAT CAN BE FRUSTRATING. THE, THAT LIMITATION IS PART OF THE FORMAL HEARING PROCESS. UH, IT SHOULD NOT BE INTERPRETED AS A LACK OF INTEREST, A LACK OF RESPECT OR A LACK OF CONCERN, UH, ON THE PART OF THE COMMISSIONERS, UH, THAT, UH, UH, OF YOUR, UH, UH, THOUGHTS THAT YOU'RE EXPRESSING. OUR JOB TONIGHT IS TO LISTEN. AND WHILE THE COMMISSION CANNOT ENGAGE IN QUESTION AND ANSWERS DURING THE HEARING, MEMBERS OF OUR STAFF WILL BE AVAILABLE FOLLOWING THE HEARING, AND THEY WILL BE HAPPY TO ANSWER ANY AND ALL QUESTIONS OR PROVIDE ADDITIONAL INFORMATION ABOUT YOUR CONCERNS. UH, PLEASE STICK AROUND WHEN THE HEARING CONCLUDES. RAISE YOUR HAND, UH, UH, ASK FOR ASSISTANCE FROM THE FOLKS THAT ARE HERE. WE'VE GOT A TON OF STAFF MEMBERS THAT ARE HERE AND PRESENT. UM, WE'LL STAY AS LATE AS, AS YOU NEED TO IN ORDER TO GET ALL OF YOUR, UH, QUESTIONS ANSWERED. SO AGAIN, THANK YOU FOR BEING HERE. THANK YOU FOR CARING ENOUGH ABOUT YOUR COMMUNITY TO PARTICIPATE AND THANK YOU IN ADVANCE FOR SHARING YOUR THOUGHTS WITH US. WITH THAT, WE WILL BEGIN THE PROP TWO 18 PUBLIC HEARING. SO ITEM NUMBER TWO ON THE AGENDA, RECEIVE SUPPORTING DOCUMENTATION INTO THE RECORD ON THE PROPOSED INCREASE TO THE CITY'S WATER AND SEWER RATES FOR FISCAL YEAR 2026. 2027. RECEIVE PUBLIC COMMENT PURSUANT TO PROP TWO 18 AND IN THE ABSENCE OF A MAJORITY PROTEST, CONCLUDE THE PUBLIC HEARING. WE'RE NOW GOING TO START THE HEARING FOR THE SUBMISSION OF THE PUBLIC PROTESTS OF THE PROPOSED INCREASE TO THE CITY'S WATER AND SEWER RATES FOR FISCAL YEAR 2027. UH, I WOULD CALL ON GENERAL MANAGER FAGAN STAFF REPORT. THANK YOU MR. PRESIDENT. UH, WITH YOUR PERMISSION, I'M GONNA SPEAK FROM THE MICROPHONE, UH, THERE IN FRONT OF THE PODIUM PLEASE. SO THANK YOU ALL AND GOOD EVENING. IS THIS CLOSE ENOUGH? CAN YOU HEAR ME OKAY? YES. UH, YES. GOOD. SO I HAVE THE PRESENTATION FOR YOU TODAY AND WHAT I'D LIKE TO DO, UH, TO TALK FIRST IS GIVE YOU AN OVERVIEW OF PROP TWO 18. GIVE YOU A GROUNDING IN THAT, TALK A LITTLE BIT ABOUT THE BUDGET DEVELOPMENT PROCESS, SPEND A LITTLE BIT TIME OF WHY WATER RATE ADJUSTMENTS ARE NEEDED, AND THEN GO INTO A GOOD SUMMARY OF BUDGET PRIORITIES, THE VARIOUS PORTIONS OF THE BUDGET ITSELF, AND HOW THEY CAN BE IMPACTING THE VARIOUS ASPECTS OF RATES. WE'LL GIVE HER A DISCUSSION OF CUSTOMER BILL IMPACTS AND AS SUCH, WE'LL ALSO TALK ABOUT UTILITY ASSISTANCE PROGRAMS AND RESOURCES, UH, GIVEN THE FACT THAT WE ARE ALWAYS DEALING WITH THIS ASPECTS OF BUDGET AND RATES AND THE NEXT STEPS FOR THE BOARD AS WELL. SO PROP TWO 18, I'M GONNA LEAD YOU THROUGH THE WORDS ON THE SCREEN, BUT I HAVE SOME MORE INFORMATION THAT FOLLOWS AFTER THIS SLIDE. SO PROPOSITION TWO 18 IS A CALIFORNIA LAW DESIGNED TO PROTECT UTILITY CUSTOMERS BY ENSURING THAT RATES ARE FAIR, TRANSPARENT, AND BASED ONLY ON THE COST OF PROVIDING RELIABLE SERVICES SUCH AS WATER AND SEWER. IT PROHIBITS RATES FROM BEING USED TO GENERATE EXCESS REVENUE BEYOND THE COST OF PROVIDING THOSE RESOURCES BEFORE PROPOSED RATE CHANGES CAN BE FULLY ADOPTED AFFECTED. PROPERTY OWNERS RECEIVE ADVANCED NOTICE AND HAVE AN OPPORTUNITY TO SUBMIT WRITTEN PROTESTS. IF THE REQUIRED NUMBER OF VALID PROTESTS IS RECEIVED, WHICH IS ESSENTIALLY 50% PLUS ONE OF THE TOTAL ACCOUNT HOLDERS, THE PROPOSED RATES CANNOT BE ADOPTED. THIS PROCESS PROMOTES TRANSPARENCY, ACCOUNTABILITY, AND A MEANINGFUL PUBLIC PARTICIPATION IN UTILITY RATE SETTING. ANOTHER [00:15:01] WAY TO LOOK AT THIS IS THIS FLOW CHART. SO WE TALKED A LITTLE BIT ABOUT THE PURPOSE OF PROPOSITION TO 18, BUT WE WON'T REPEAT THIS ASPECT, BUT IN ESSENCE IS PROTECTING UTILITY CUSTOMERS BY ENSURING RATES ARE FAIR, TRANSPARENT, AND BASED ON COST OF SERVICE WHEN IT COMES TO THE COST BASE RATES. THEN BY ESTABLISHING COST BASE RATES, THIS PROHIBITS UTILITIES FROM SETTING RATES THAT GENERATE REVENUE BEYOND THE ACTUAL COST OF PROVIDING THOSE SERVICES. THE CUSTOMER NOTIFICATION ASPECT OF PROPOSITION TO 18 IS THE REQUIREMENT FOR CUSTOMERS TO RECEIVE ADVANCED NOTIFICATION BEFORE PROPOSED RATE CHANGES CAN BE ADOPTED. AND FINALLY, THE PUBLIC PARTICIPATION ASPECT OF IT ALLOWS AFFECTED CUSTOMERS TO SUBMIT WRITTEN PROTESTS REGARDING THE PROPOSED RATES. THE PROTEST THRESHOLD, AS WE HAD DESCRIBED, IS THE MAJORITY, ONE 50% PLUS ONE OF THE AFFECTED ACCOUNT HOLDERS. AND THE OVERALL PROCESS AND THE INTENT OF PROPOSITION TWO 18 IS TRANSPARENCY AND ACCOUNTABILITY AS AN OUTCOME OF THIS ENTIRE PROCESS IS TO ENSURE THAT UTILITY RATE DECISIONS ARE RESPONSIBLE, JUSTIFIED, AND ALIGNED WITH THE COST OF DELIVERING ESSENTIAL SERVICES. AS FAR AS STAFF WORKING WITH THE BOARD, WE'VE WORKED WITH THE BOARD THROUGH BUDGET MEETINGS AND PLANNING SESSIONS DATING TO MARCH 19TH. STAFF HAS BEEN COMMITTED TO DEVELOPING ANY NUMBER OF METRICS, COST ACCOUNTING FOR THE CURRENT BUDGET, CHALLENGES BEING FACED, THE DRIVERS OF BUDGET DECISIONS STARTING IN MARCH 19TH, AND THEN A SERIES OF PLANNING SESSIONS ON MAY 14TH AND MAY 28TH AND EVEN JUNE 4TH, RE REVIEWING VARIOUS ASPECTS OF THE WATER AND SEWER FUNDS, THEIR BUDGETS, PROJECTIONS, THEIR RESERVES AND RATE SCENARIOS. ON JUNE 4TH, THE FINAL SESSION, THE BOARD APPROVED THE PROPOSED BUDGETS, PROJECTIONS, RESERVES, AND RATES FOR THE WATER AND SEWER FUNDS. I'M GONNA USE THIS SLIDE TO SPEND JUST A LITTLE BIT OF TIME TALKING ABOUT IN GENERAL HOW A BUDGET DOLLAR BREAKS DOWN FOR THE UTILITY FUNDS. IN GENERAL, YOU CAN SEE THE DOLLARS AND THEN THE CENTS ASSOCIATED WITH THAT PARTICULAR DOLLAR. A LARGE AMOUNT, 28 CENTS, IF YOU LOOK AT THE UPPER LEFT HAND PART FOCUSES ON OPERATIONS AND MAINTENANCE. THIS IS NOT LABOR, THIS IS OPERATIONS AND MAINTENANCE OF THE SYSTEM. PAYING FOR THE COMMODITY, PAYING FOR THAT RESOURCE CONSUMED IS ABOUT 22% OF THE DOLLAR AND ITS DISTRIBUTION AS WELL. PROVIDING SAFE, CLEAN, AND RELIABLE WATER AND SEWER SERVICE REQUIRES INFRASTRUCTURE INVESTMENTS EACH AND EVERY YEAR. THE CARE AND PROPER REPAIR AND REHABILITATION OF THOSE IS NECESSARY INVESTMENTS EACH AND EVERY YEAR THAT ALLOW THE SYSTEM TO DELIVER ITS OBJECTIVES TO THE COMMUNITY. AND THEN FINALLY, 22 CENTS OF EVERY DOLLAR IS THE LABOR AND WORKFORCE THAT ARE ESSENTIAL INFRASTRUCTURE PIECES AS WELL TO MAKE SURE THAT THOSE SERVICES ARE DELIVERED IN TERMS OF HOW THE BUDGET BREAKS DOWN. USING A PIE CHART TO GIVE YOU AN AN ASSESSMENT HERE FOR THE WATER EXPENDITURES WITH A PROPOSED 6% RATE INCREASE, THE REVENUES IS OVERWHELMINGLY FROM POTABLE WATER SALES. THERE IS A SUBSTANTIAL PORTION, UH, FROM CAPITAL INVESTMENT PROJECTS, RECLAIMED WATER SALES AND DEBT PROCEEDS. ON THE EXPENDITURE SIDE, IF YOU TAKE THE COST FOR PUMPED AND PURCHASED, YOU TAKE SALARY AND WAGES, CAPITAL INVESTMENT AND OPERATION AND MAINTENANCE. THE SHEER OPERATION OF THE SYSTEM TO DELIVER THAT SAFE, CLEAN, AND RELIABLE WATER AND SEWER SERVICE EVERY YEAR IS ALMOST THE ENTIRE BUDGET IN AND OF ITSELF ON THE SEWER SIDE, LITTLE BIT OF DIFFERENCE IN THE PIE CHARTS, BUT STILL ESSENTIALLY THE SAME CONNECTIONS. WE HAVE SOME FAIRLY LARGE CAPITAL EXPENDITURES COMING FORWARD. AND SO IN TERMS OF THE REVENUES THEMSELVES, THERE'S A SUBSTANTIAL LINE OF CREDIT. THE VOLUMETRIC AND DAILY SERVICE CHARGE IS ANOTHER ASPECT OF THE REVENUES AND THE REIMBURSEMENT CAPITAL IMPROVEMENT PROJECTS THAT ARE BEING OPERATED IN THE SEWER FUND. THEY FORM THE OVERWHELMING SOURCE OF REVENUE, THE EXPENDITURE SIDE, THERE'S A MAJOR CAPITAL INVESTMENT PROJECTS GOING ON RIGHT NOW, AND SO THEREFORE THAT WILL DOMINATE THE BUDGET OPERATION OF MAINTENANCE THAT GOES ALONG WITH IT IS ANOTHER SUBSTANTIAL PORTION. AND THE OTHER MAJOR PORTION THAT ROUNDS OUT IS THE SALARY, WAGES, AND BENEFITS. THAT COMPLETES THE OVERWHELMING MAJORITY OF THAT PIE CHART IN TERMS OF EXPENDITURES FOR THE SEWER FUND. SO I TOLD YOU BEFORE THAT THIS PART OF THE PRESENTATION, I TALKED A LITTLE BIT ABOUT WHY ARE RATE ADJUSTMENTS NEEDED. INFLATION IN GENERAL IS ONE OF THE KEY DRIVERS, AND IT'S THE KEY DRIVERS OF A NUMBER OF DIFFERENT ASPECTS OF THE BUDGET, OF THE BUDGETED COSTS. THERE IS INDEED HIGHER EMPLOYEE COSTS, THERE'S ALSO HIGHER CONTRACTOR COSTS ASSOCIATED WITH CONSTRUCTION. THE CONSTRUCTION COST INDEX, WHICH IS A SEPARATE INDEX, MEASURING CONSTRUCTION COSTS ACROSS THE BOARD HAS BEEN DRAMATICALLY RISING FASTER THAN THE RATE OF INFLATION FOR AT LEAST THE PAST HALF DECADE. RISING COSTS OF MATERIAL AND EQUIPMENT BECAUSE [00:20:01] THE NATURE OF PROVIDING SAFE, CLEAN, AND RELIABLE WATER SERVICE HAS TO DO WITH ACQUIRING MATERIALS AND EQUIPMENT TO POWER. THAT HAS ALSO BEEN RISING SIGNIFICANTLY. WE HAVE, AS I TOLD YOU, THE INVESTMENTS IN INFRASTRUCTURE AND IT RESULTS FROM THE AGING INFRASTRUCTURE OVERALL. I SAID THAT THE CAPITAL INVESTMENTS THAT ARE NECESSARY ARE NECESSARY IN THE SENSE THAT EVERY YEAR THERE IS IMPROVEMENTS THAT NEED TO BE MADE TO THE SYSTEM IN ORDER TO ENSURE THAT WE ARE ALWAYS DELIVERING THAT CLEAN, SAFE, AND RELIABLE SERVICE. CLIMATE AND WEATHER IMPACTS AFFECT THINGS AS WELL, AND THAT REPRESENTS THE BULK OF WHY THESE RATE ADJUSTMENTS ARE NEEDED. THE BUDGET AS STAFF PREPARES IT AND WORKS WITH THE BOARD IS, I TOLD YOU IN THE EARLY SLIDES TALKING ABOUT PROPOSITION TO 18, THEY ARE COST OF SERVICE BASE. AND THIS IS FUNDAMENTALLY ONE OF THE CRITICAL ASPECTS OF HOW A UTILITY GOES ABOUT CREATING ITS BUDGET. FIRST AND FOREMOST, FOR THE SERVICES THAT WE DO HAVE TO PROVIDE, STAFF ENGAGES IN EXTENSIVE EFFORTS ACROSS THE BOARD EACH AND EVERY YEAR TO CONTROL COSTS. WE ALSO LOOK AT OPPORTUNITIES TO IMPROVE EFFICIENCY WITHIN OUR UTILITIES THAT ULTIMATELY HAVE PAYOFFS DOWN THE ROAD IN TERMS OF MANAGING COSTS AND POTENTIALLY REDUCING WHAT FUTURE COSTS MIGHT LOOK LIKE. AFTER WE DO ALL THAT, AS WE'RE ASSEMBLING THE BUDGET, WE LOOK AT BALANCING OUT OUR COSTS WITH ANY EFFORT THAT WE CAN MANAGE BY IN, BY USING DEBT. USING DEBT ALLOWS US TO SPREAD THOSE COSTS FOR SIGNIFICANT CAPITAL INVESTMENTS, NOT ONLY OVER THIS GENERATION OF CUSTOMERS, BUT FUTURE CUSTOMERS SO THAT EVERYBODY IS PAYING THEIR FAIR SHARE OF THE INVESTMENTS NEEDED FOR MAINTAINING THE INFRASTRUCTURE. ONCE WE'RE DONE WITH THOSE ELEMENTS, BALANCING THE REST OF THE BUDGET COMES WITH DEALING WITH THE REVENUE PIECES AND UNDERSTANDING WHAT IS THE REVENUE ADJUSTMENT THAT WE NEED TO MAKE IN ORDER TO BALANCE OUT THE BUDGET. THIS IS JUST A SAMPLE, IT'S NOT EXHAUSTIVE IN TERMS OF EVERYTHING THAT WE DO IN THE BUDGET, BUT I WANT TO JUST SHARE WITH YOU SOME INSIGHTS AS TO COST CONTROL AND EFFICIENCY EFFORTS. WHEN IT COMES TO WORKFORCE AND CAPITAL PLANNING. WE'RE DEFERRING POSITIONS FROM FISCAL YEAR 27 TO 28 IN YEAR TO YEAR. WE'RE ALWAYS LOOKING TO SEE IF WE CAN MAKE SHIFTS IN CAPITAL IMPROVEMENT PROJECT SCHEDULES THAT CAN BENEFIT THE CURRENT FISCAL YEAR AND HELP SET US UP FOR, FOR A BETTER SITUATION GOING INTO THE NEXT FISCAL YEAR. AND THAT'S WHAT WE WERE DOING HERE AS WELL. WE CONTINUE TO STRENGTHEN IN-HOUSE CAPABILITIES. ONE EXAMPLE OF THAT IS TRANSITIONING UTILITY SCADA. SCADA IS THE TECHNOLOGY SYSTEM THAT ALLOWS US TO OPERATE THESE COMPLEX NETWORKS WITH CONTROL ROOMS AND THINGS LIKE THAT. WE'RE TRANSITIONING UTILITY CADA TO AN IN-HOUSE MODEL IN THE HOPES THAT THAT SAVES US ON CONTRACTOR COSTS AND PROVIDES US IN EFFICIENCIES. INTERNALLY, WE OPTIMIZE OUR INTERNAL EXPERTISE FOR PUBLIC AFFAIRS MATERIALS, WHICH SAVES US ON HAVING TO GO OUT AND HAVE PRIVATE COMPANIES PROVIDE THOSE MATERIALS FOR US. IN TERMS OF PROCUREMENT EFFICIENCIES, PROCUREMENT MEANING PURCHASING, JUST BUYING THE GOODS AND SERVICES THAT WE NEED TO RUN THE UTILITY. WE'RE CONSTANTLY EVALUATING MARKET PRICING OPPORTUNITIES AND WE'VE RECENTLY UNDERTAKEN A MAJOR OVERHAUL OF OUR PROCUREMENT SYSTEM. AND THAT INITIATIVE IS TO STREAMLINE PROCESSES AND THE TOOLS SO THAT WE CAN HAVE BETTER PROCUREMENT EFFICIENCIES, YIELDING TO MORE EFFECTIVE COSTS, AND THE MANAGING OF THOSE COSTS GOING FORWARD. REVENUE AND COST ALLOCATION, IT'S INCREDIBLY IMPORTANT FOR MANY OF THESE COSTS THAT ARE ACCUMULATED IN THE UTILITY TO MAKE SURE THAT WE'RE DOING THE PROPER CARE AND ALLOCATION OF THOSE COSTS TO THE VARIOUS FUNDS. AFTER ALL, ALLOCATING THEM TO THE VARIOUS FUNDS YIELDS THE BUDGETS THAT WE'RE TRYING TO CREATE. SO MAKING SURE THAT WE'RE CORRECTLY ALLOCATING THEM IS A KEY FACTOR. AND ONE OF THE THINGS THAT WE'RE ENGAGING WITH THE BOARD IS DOING A CONSULTANT REVIEW AND DEVELOPMENT OF THE OVERHEAD AND ADMINISTRATIVE COST ALLOCATION TO THOSE FUNDS, WHICH ULTIMATELY HAS A DIRECT IMPACT ON THE BUDGET AND OVERALL OPERATIONAL EFFICIENCIES AS WELL. WE'RE ALWAYS LOOKING AT TECHNOLOGY SOLUTIONS, IN THIS CASE, TECHNOLOGY SOLUTIONS FOR THE CALL CENTER AND BUILDING OPERATIONS, AND WE'RE IDENTIFYING OPPORTUNITIES TO CONSOLIDATE ACROSS THE UTILITIES. AFTER ALL, WE ARE WATER, GAS, AND SEWER, AND OUR ABILITY TO CONSOLIDATE EFFECTIVE OPERATIONS IN THAT MANNER CAN YIELD OPERATIONAL EFFICIENCIES DOWN THE ROAD THAT ARE JUST SIMPLY GOOD PRUDENT BUDGET MANAGEMENT. SO I TOLD YOU THAT IN THIS CYCLE OF DOING THINGS, AS WE'RE TRYING TO PUT THE BUDGETS TOGETHER BEFORE WE EVEN LOOK AT REVENUE, WE'RE TALKING ABOUT HOW TO MANAGE DEBT. DEBT ALLOWS US TO OFFSET SOME OF THESE COSTS BY PLACING LONG-TERM OBLIGATIONS. AND IN THIS CASE, THE WATER CIP HAS A $62.9 MILLION CIP, BUT DEBT FINANCING IS GONNA BE 18 MILLION OF THAT AND CASH FUNDED WILL BE JUST UNDER 45 MILLION. THE SEWER CIP IS A PRETTY SIGNIFICANT INVESTMENT. WE'RE GOING TO BE DEBT FINANCING ABOUT 28 MILLION AND CASH FUNDING JUST UNDER 8 MILLION. [00:25:04] SOME OF THESE CAPITAL IMPROVEMENT PROJECTS. TO GIVE YOU A SNAPSHOT, I SAID THESE ARE THE TYPES OF IMPROVEMENTS THAT ARE NECESSARY IN ORDER TO MAKE SURE THAT EACH AND EVERY YEAR WE'RE DELIVERING SAFE, CLEAN, AND RELIABLE SERVICE. SO IN WATER, ONE OF THEM IS WHAT WE CALL THE 32ND STREET BOOSTER PUMP STATION. THE 32ND STREET BOOSTER PUMP STATION IS JUST OUTSIDE THESE WALLS OVER TO MY LEFT, A LITTLE BIT FARTHER DOWN OFF TO MY LEFT, BUT IT'S THE REHABILITATION OF 1950S ERA BOOSTER PUMP STATION, WHICH SERVES THE CITY'S HIGHER ELEVATION BOOSTED ZONE. WE NORMALLY CAN DELIVER WATER FROM TWO RESERVOIR AREAS. ONE OF THEM YOU'RE FAMILIAR WITH IS ALAMITOS HILL. THE OTHER ONE IS JUST ON THE OUTSKIRTS OVER BY CAL STATE DOMINGUEZ HILLS. BUT THERE'S A SECTION HERE JUST TO WHERE I'M POINTING IN THIS AREA. IT'S JUST A LITTLE BIT OUT OF REACH. AND SO IN ORDER TO DO THAT, WE HAVE THIS BOOSTER PUMP STATION. AND AS YOU CAN SEE FROM THE STATEMENT HERE, IT'S A 1950S ERA BOOSTER PUMP STATION. IT'S DONE REALLY WELL AND WE'VE IMPROVED IT FROM TIME TO TIME. BUT HERE IS A MAJOR, MAJOR REHABILITATION OF THAT PUMP STATION. WE'RE GONNA BE REPLACING PUMPS, PIPING, ELECTRICAL SYSTEMS, THE GENERATOR AND STRUCTURAL UPGRADES TO IMPROVE THE RELIABILITY. CONSTRUCTION IS EXPECTED TO BE COMPLETED BETWEEN THE THIRD AND FOURTH QUARTER OF THE COMING FISCAL YEAR. WE'RE ALSO EQUIPPING NEW WELLS. THERE'S NEW WELLS IN EL DORADO AND COMMISSION. THESE ARE IN THE EL DORADO PARK AREA. NEW WELLS IS ALWAYS A CRITICAL ASPECT OF SUSTAINING. ONE OF THE THINGS THAT'S THE MOST AFFORDABLE IN THE BUDGETS IN PROVIDING SAFE, CLEAN, AND RELIABLE WATER SERVICE. OUR GROUNDWATER, THE WATER BENEATH OUR FEET. IT IS THE MOST AFFORDABLE SOURCE OF WATER, AND IT IS A COMMITMENT THAT WE HAVE TO MAKE EACH AND EVERY YEAR TO MAKE SURE THAT THE POPULATION OF WELLS THAT WE HAVE IS EFFECTIVELY DELIVERING THAT SERVICE. IN THIS CASE, WE'RE EQUIPPING NEW WELLS TO ENHANCE OUR ABILITY TO DELIVER THAT VALUABLE RESOURCE IN SEWER. THE MARINA AND BEACH LIFT STATION FORCE MAIN REPLACEMENTS. THESE ARE PROJECTS THAT WE WOULD NORMALLY COMMIT TO ON A REGULAR BASIS AS PART OF THE UPGRADES AND MAINTENANCE. WE'RE GOING TO DO THEM NOW AND REPLACE THEM ALONG WITH THE AGING SEWER FORCE MEANS IN THE AREA, THAT PROJECT IS EXPECTED TO BE COMPLETED IN 2028 AHEAD OF THE OLYMPIC AND PARALYMPIC GAMES. I NOTED TO YOU THAT WE'RE HAVING A SIGNIFICANT DEBT INVESTMENT BY DOING THAT SIGNIFICANT DEBT INVESTMENT. WE NOT ONLY ACCELERATE THOSE PROJECTS, BUT WE MAKE THOSE PROJECTS HAPPEN NOW AND THEY'RE NO LONGER NEEDED IN THE FUTURE. THAT MEANS THAT FUTURE RATE PAYERS ARE AFFORDED THAT BUDGET BENEFIT, IF YOU WILL, BECAUSE THOSE COSTS WERE NO LONGER BEING INCURRED IN THE FUTURE. INSTEAD, THE COSTS ARE BEING SPREAD OUT OVER THE LONG TERM BY ISSUING DEBT TO GET THEM FUNDED. SO I TOLD YOU BUDGET AND THEN THE RESULTING IMPACT TO THE BILL, AND THAT'S WHAT YOU SEE ON THIS SLIDE. IN TERMS OF WATER, THE THINGS THAT I SHARED WITH YOU RIGHT NOW, THE BUDGET, ITS SERVICES, WHAT IT PROVIDES IN ORDER TO ACCOMPLISH THOSE. AFTER WE'VE DONE ALL THIS BUDGET BALANCING EFFORT, THERE'S A RECOMMENDED 6% RATE INCREASE IN WATER FOR THE SINGLE FAMILY. AVERAGE RESIDENTIAL BILL, THIS INCREASE WILL BE ABOUT $4 AND 64 CENTS ON THE MONTHLY BILL FOR SEWER. THE RECOMMENDED 8% RATE INCREASE FOR THE SINGLE FAMILY AVERAGE RESIDENTIAL BILL WILL BE ABOUT A DOLLAR 10. SO TOTAL IMPACT ON THE MONTHLY BILL, $5 AND 74 CENTS. WE NOTED IN THE ASTERISK ON THE BOTTOM THAT WE CALCULATED THIS HAVING TO ASSUME AN AVERAGE CONSUMPTION. SO THE AVERAGE CONSUMPTION IS 10 BILLING UNITS FOR THE SINGLE FAMILY RESIDENTS. WHENEVER WE GO THROUGH THIS PROCESS AND WE TALK ABOUT BUDGET, WHEN WE TALK ABOUT RATES, IT'S IMPORTANT TO US THAT WE ARE CONSISTENTLY EVALUATING HOW WE ARE DELIVERING VALUE TO THE COMMUNITY. AND ONE WAY TO CALCULATE THAT VALUE IS TO COMPARE OURSELVES, NOT JUST TO ANY CITY, BUT TO COMPARE OURSELVES TO THE LARGEST CITIES IN THE STATE, WHICH ARE VERY MUCH LIKE US. AND WHEN I SAY VERY MUCH LIKE US, I'M TALKING ABOUT THE FACT THAT MUCH OF OUR WATER COMES FROM THE GROUND BENEATH OUR FEET, BUT NOT ALL OF IT. IN MANY CASES, WE HAVE TO IMPORT WATER JUST SOMEWHERE LIKE THE MAJOR LARGE CITIES IN THE STATE OF CALIFORNIA. HOW WE COMPARE TO THOSE, I CAN HEAR IT TELL YOU THAT THE VALUE DELIVERED TO LONG BEACH RESIDENTS IS SIGNIFICANT. YOU CAN SEE HERE THE LONG BEACH RATES. THE BLUE IS WATER, THE BROWNISH IS SEWER. IF YOU TAKE THOSE TWO AND YOU LUMP THEM, YOU CAN SEE THAT EVEN WITH THE BOARD ADOPTED RATES COMPARED TO OUR OTHER LARGER CITIES THAT COMPARE WITH US IN TERMS OF POPULATION, OAKLAND, SAN JOSE, SAN DIEGO, LOS ANGELES, SAN FRANCISCO, FRESNO. UNFORTUNATELY I CAN'T BEAT. AND YOU CAN SEE THAT THAT ONE IS SLIGHTLY LOWER THAN LONG BEACH. I CANNOT TELL YOU EXACTLY WHAT'S GOING ON THERE, BUT THEY ALWAYS COME OUT AHEAD OF US. BUT IN TERMS OF THE LARGE CITIES, THIS COMPARISON I THINK IS ALWAYS APPROPRIATE AND CONVEYS TO YOU THAT EVEN WITH ALL THE STUFF THAT'S BEING PROPOSED, THE VALUE TO LONG BEACH RESIDENTS CONTINUES TO BE SIGNIFICANT. WITH THAT SAID, IT'S IMPORTANT TO NOTE THAT EVEN WITH THIS DISCUSSION OF BUDGET, EVEN WITH THE DISCUSSION OF RATES, [00:30:01] WE ARE ALWAYS COMMITTED TO THE COMMUNITY AND WE ARE OUT IN THE COMMUNITY PRESENTING EACH AND EVERY TIME, INFORMATION ABOUT OUR SERVICES, INFORMATION ABOUT THE VALUE WE PROVIDE, BUT AT THE SAME TIME, INFORMATION ABOUT THE ASSISTANCE PROGRAMS THAT WE PROVIDE. AND THOSE RUN A WIDE GAMUT. THERE'S UTILITY ASSISTANCE PROGRAMS IN ACTUAL ASSISTANCE WITH THE BILL, AND THESE ARE DISPLAYED HERE. AND THERE'S INFORMATION THAT WAS PRESENTED JUST OUTSIDE IN THE TABLES AS YOU WERE ARRIVING IN THE ROOM. THAT GIVES ACCESS TO HOW TO GET TO THESE PROGRAMS, WHETHER IT'S NATURAL GAS ASSISTANCE PROGRAMS, SENIOR OR DISABILITY DISCOUNT PROGRAMS, LEAK REPAIR PROGRAMS, GAS DISCOUNT, MEDICAL HEATING ALLOWANCE PROGRAMS, AND JUST HOUSEHOLD WATER ASSISTANCE PROGRAMS. EVERY ONE OF THESE HAS TO DO WITH PROVIDING ASSISTANCE. IF YOU HAVE CONCERNS ABOUT MANAGING YOUR BILL AND ARE TRYING TO FIND OTHER WAYS WHEN IT COMES TO UTILITY CONSERVATION PROGRAMS, THIS IS YET ANOTHER WAY BECAUSE IN THE END, IF YOU WANT TO DEAL WITH YOUR BILL, THERE'S ALSO THE OPPORTUNITIES TO REDUCE THE CONSUMPTION IN YOUR BILL. AND WE HAVE NUMEROUS DIFFERENT PROGRAMS. WE HAVE CLIMATE FRIENDLY LANDSCAPING, UH, CERTIFIED BLUE RESTAURANT. WE HAVE DIRECT INSTALL APPLIANCES PROGRAMS, WHICH PROVIDES ELIGIBLE CUSTOMERS WITH FREE WATER EFFICIENCY APPLIANCES THAT HELP CONSERVING WATER. THERE'S WATER REBATES AND OTHER INCENTIVES, AND THERE'S SMART WATER METERS. 90,000 METERS IN THE CITY OF LONG BEACH ARE ALREADY COMPUTERIZED, AND YOU CAN ACCESS THEM, UH, THROUGH YOUR EMAIL AND PROPER CONNECTION. AND IT CAN GIVE YOU ALL KINDS OF INFORMATION ABOUT YOUR WATER USE. IT CAN HELP YOU DETECT LEAKS. SOMETIMES YOU HAVE LEAKS AND YOU DON'T KNOW ABOUT IT. IT CAN HELP YOU CONSERVE WATER. AFTER TONIGHT. AS WE GO THROUGH THIS PROCESS, I JUST WANTED TO GIVE YOU A SNAPSHOT OF WHAT LIES AHEAD. SO THE HEARING IS THE HEARING, AND IT HAS TO TAKE PLACE. IF THE HEARING TAKES PLACE AND WE CAN PROCEED, THEN THE PROP TWO 18 RESULTS WILL TAKE PLACE TODAY. WE'LL COMPLETE THE COUNTING OF ALL THE WRITTEN PROTESTS RECEIVED BY THE CUSTOMERS. IF THE NUMBER OF VALID PROTESTS DOES NOT CONSTITUTE A MAJORITY, THE UTILITIES DEPARTMENT MAY PROCEED WITH THE RATED OPTION PROCESS. IF WE DO THAT, THEN ON SEPTEMBER 8TH, WE'RE ANTICIPATING CITY COUNCIL CONSIDERATION AND THE PROPOSED RATES THAT ARE PRESENTED TO CITY COUNCIL. THEN AS PART OF THE BUDGET AND RATE ADOPTION PROCESS, IF THEY'RE APPROVED THERE, THEN THE RATES BECOME AUTHORIZED IN ACCORDANCE WITH THE ADOPTED SCHEDULE. AND THAT WOULD BE OCTOBER 1ST. THAT WOULD BE THE RATE EFFECTIVE DATE. CUSTOMERS WOULD SEE THE NEW CHARGES REFLECTED ON BILLS ISSUED AFTER THAT EFFECTIVE DATE. AND THAT CONCLUDES MY PRESENTATION. THANK YOU VERY MUCH, MR. PRESIDENT, MEMBERS OF THE COMMISSION, WE CAN NOW PROCEED ON. THANK YOU GENERAL MANAGER FALLON. UH, THAT WAS VALUABLE CONTEXT TO HELP INFORM THE THIS HEARING. THANK HONOR. THANK YOU. UH, THE PUBLIC COMMENT PERIOD [PUBLIC COMMENT Opportunity to address the Utilities Commission on non-agenda items. Each speaker is limited to three minutes to make their comments unless extended by the Board.] IS NOW OPEN, UH, JUST FOR THOSE FOLKS THAT, UH, MIGHT HAVE COME IN LATE OR JUST AS A, AS A REMINDER, UH, OUR JOB UP HERE TONIGHT IS TO LISTEN. THIS IS A HEARING AND WE WILL BE LISTENING. UH, AND WHILE THE COMMISSION CANNOT ENGAGE IN QUESTIONS AND ANSWERS DURING THE HEARING, MEMBERS OF OUR STAFF WILL BE AVAILABLE AFTERWARDS. SO PLEASE STICK AROUND, RAISE YOUR HAND, UH, FROM, UH, THE, OUR, OUR STAFF IS MORE THAN HAPPY TO, TO ASSIST YOU, ANSWER ALL OF YOUR QUESTIONS, UH, OR GIVE YOU, UH, WHATEVER, UH, UH, ADDITIONAL INFORMATION YOU MIGHT NEED. UH, SO MOVING FORWARD, IF YOU HAVEN'T ALREADY DONE SO AND WISH TO SPEAK, PLEASE COMPLETE A SPEAKER'S CARD, WHICH IS, UH, OVER TO MY LEFT AND SUBMIT IT TO THE EXECUTIVE ASSISTANT TO THE BOARD. YOUR NAME WILL BE CALLED IN THE ORDER IT WAS RECEIVED. UH, SPEAKERS WILL STATE THEIR NAME AT THE MICROPHONE PLEASE AND TRY TO SPEAK LOUDLY INTO, DIRECTLY INTO THE MICROPHONE. UH, PLEASE LIMIT YOUR REMARKS TO THREE MINUTES. THERE WILL BE A TIMER THAT YOU SEE UP ON THE SCREEN THERE TO HELP, UH, KEEP YOU, UH, WITHIN YOUR TIME PERIOD. UH, STAFF MEMBERS AND BOARD MEMBERS, AGAIN, WILL BE AVAILABLE. UH, ONCE WE'VE ADJOURNED. UH, THE BOARD EXECUTIVE ASSISTANT WILL NOW CALL PUBLIC SPEAKERS TO THE MICROPHONE BASED UPON, UH, THE ORDER IN WHICH THEIR SPEAKER CARDS WERE RECEIVED. OUR NUMBER ONE SPEAKER IS MR. TONY ESPARZA. PLEASE COME TO THE MICROPHONE. TIME START ALREADY? NOT YET. UH, THANK YOU, UH, MR. PRESIDENT AND MEMBERS OF THE COMMISSION. UH, MY NAME'S TONY ESPARZA. I LIVE IN NORTH LONG BEACH. UM, I JUST HAVE A COUPLE CONCERNS. THEY'RE, FIRST OF ALL, THE UTILITY BILL IS NOT SELF-EXPLANATORY. THE WAY, UM, YOU SAY IT IS BECAUSE THE COMMON PERSON LIKE MYSELF DOESN'T KNOW WHAT A TIER ONE, UH, CONSISTS OF. HOW MANY GALLONS IS THAT? HOW MANY GALLONS IS A TIER TWO? AND, AND A MORE ITEMIZED, UH, VERSION OF THE BILL WOULD GIVE ME WHAT I'M PAYING EXACTLY FOR A GALLON OF WATER, IF THAT'S WHAT YOU'RE MEASURING IT ON, OR A LITER OR WHATEVER IT IS THAT THE MEASUREMENT IS. THIS IS GENERIC, [00:35:01] AND I THINK IT'S THAT WAY, SORRY TO SAY BY DESIGN. UM, THE OTHER THING, UM, I, I KNOW THAT THIS HEARING IS JUST A FORMALITY. UH, THERE'S NOTHING I CAN SAY OR THE CITIZENS OF LONG BEACH CAN SAY OR HAVE SAID, UH, TO CHANGE YOUR MINDS OF THE DIRECTIVE THAT YOU GUYS HAVE. UH, I UNDERSTAND THAT. BUT KEEP IN MIND, THE ECONOMY, LIKE YOU MENTIONED, MR. PRESIDENT IS BAD. EVERYTHING IS HIGH. FOOD, RENT, UM, OTHER UTILITIES, INSURANCE, MEDICAL, UH, AUTO INSURANCE. UH, I COULD, IT WILL TAKE ME MORE THAN THREE MINUTES, BUT YOU KNOW WHAT I'M GETTING AT. OKAY. UM, YOU GUYS ARE ALL, I BORN AND RAISED IN LONG BEACH, BY THE WAY. I WORKED FOR THE CITY FOR 37 YEARS. UM, I LIVE ON A RETIREMENT BENEFIT. IT'S A FIXED INCOME, BUT I DON'T QUALIFY FOR ANY OF THOSE PROGRAMS THAT, UM, THE DIRECTOR MENTIONED. I ALREADY LOOKED INTO IT. I MAKE TOO MUCH. MY RETIREMENT'S TOO MUCH. UM, WHAT CONSISTS OF A SENIOR CITIZEN? IT DOESN'T SAY ON, UH, ON THE WEBSITE. IT'S NOT USER FRIENDLY. THE WEBSITE IS NOT USER FRIENDLY. I HAD TO CALL THE WATER DEPARTMENT A COUPLE TIMES. THEY STILL HAVEN'T CALLED ME BACK. UH, WHAT DO YOU CONSIDER, UH, SENIOR CITIZEN? SOME PLACES IT'S 50, SOME PLACES 55. SOME PLACES ARE 62 AND OTHER PLACES IS 65. SO WHICH ONE IS IT? SO, UH, LAST THING, UM, MAYBE INSTEAD OF JUST THINKING ABOUT RATE INCREASES, THINK ABOUT THE KIDS. THE, THE KIDS THAT ARE GONNA BE GRADUATING PRETTY SOON HAVE SOME KIND OF INTERNSHIP PROGRAM, A MENTORSHIP PROGRAM, UM, WHERE THEY COULD COME IN AND THEY COULD BE THE NE NEXT GENIUSES OF THE DEPARTMENT OR THE CITY, YOU KNOW. UM, BUT A PAID INTERNSHIP DON'T BE CHEAP, YOU KNOW, UH, PAY THEM AND SEE WHO'S INTERESTED IN THE WATER SCIENCE AND, UH, WATER TREATMENT. AND MAYBE YOU'RE GONNA GET SOME SHINING STARS THERE. AND I WOULDN'T MIND PAYING THE $5 MORE A MONTH, BUT I DON'T SEE ANYTHING OF THAT HAPPENING ON YOUR WEBSITE. I SEE THINGS ABOUT CONTRACT MANAGEMENT, UM, SUBMITTING, UM, YOU KNOW, FORBID NOTHING THAT TELLS ME YOU GUYS ARE MORE ACTIVE IN THE COMMUNITY AND GOING TO THESE HIGH SCHOOLS AND DOING SOMETHING WITH THE KIDS. SO THEY STAY OUTTA TROUBLE THE WAY I DID TO MAKE LONG BEACH A A BETTER PLACE FOR EVERYONE. THANK YOU. THANK YOU, MR. ESPARZA. YOUR COMMENTS ARE APPRECIATED AND, UM, PLEASE STICK AROUND THERE. THERE'S FOLKS THAT CAN ANSWER THOSE QUESTIONS FOR YOU. THANK, OUR NEXT SPEAKER IS ELIZABETH DECASTRO. PLEASE COME TO THE MICROPHONE. GOOD, GOOD EVENING. I PROCESS THE PROPOSED FEES INCREASES. THESE ARE HARD TIMES FOR EVERYONE. THE CITY IS FACING THE DEFICIT AND EMPLOYEES ARE LOSING THEIR JOBS AFTER THE FISCAL YEAR ENDS. INCREASING FEES AND MAKING IT EVEN HARDER FOR PEOPLE TO SURVIVE IS IRRESPONSIBLE. YOU ARE SQUEEZING MORE AND MORE MONEY FROM HOMEOWNERS AND RENTERS WHO SIMPLY CANNOT AFFORD IT. PEOPLE PLEASE DO NOT INCREASE THESE FEES. THINK ABOUT THE PEOPLE. THIS WILL HURT THE FAMILIES WHO ARE ALREADY STRUGGLING IN THIS COMMUNITY, TRYING TO MAKE ENDS MEET. PLEASE LISTEN TO YOUR RESIDENTS AND DON'T MAKE IT HARDER FOR US TO LIVE IN LONG BEACH. THANK YOU. THANK YOU. THAT'S ALL I HAVE THERE. DID YOU PUT A SPEAKER'S CARD IN? UH, SORRY. HE CAN SPEAK. GO AHEAD AND CALL HIM. I CAME IN LATE. JUST GO AHEAD AND CALL. YEAH, YEAH, I JUST WANNA MAKE SURE THAT NO, HE DIDN'T WANNA SPEAK. OKAY, SIR, YOU CAN GO AHEAD AND APPROACH MIKE VO. OKAY. IF YOU DON'T MIND, JUST, UH, STATE YOUR NAME. YEAH, SURE. THANK YOU. UM, AND IF ANYBODY ELSE, UH, WOULD LIKE TO SPEAK, UH, PLEASE FILL OUT A CARD. THANK YOU. SO, HEY GUYS. UH, MY NAME IS SEYMOUR, UH, AND I'M HERE. I HAVE A FAN FOR SALE. I I'M HERE BECAUSE I THOUGHT THIS WAS WHEN I HEARD UTILITY PRICES WERE GOING UP. I DIDN'T KNOW IT WAS THE LONG BEACH UTILITIES, WATER AND SEWAGE. I JUST CAME RUNNING. I THOUGHT WE WERE, I WAS IN EDISON MEETING AND I SHOWED UP HERE AND I REALIZED, OH, IT'S MY OWN CITY'S UTILITIES THAT ARE ABOUT TO BE HIKED UP. SO I, I'M LIKE HOT AT HOME. UH, I CAN'T SELL MY KITCHEN SINK, UH, BUT I'M GONNA HAVE TO FIGURE OUT HOW TO USE LESS WATER. I CAN'T BRING A TOILET AND TRY TO SELL IT, BUT I'VE GOT MY, UH, FAN FOR SALE. I CAN'T PLUG IT IN ANYMORE. AND THESE RENT HIKES ARE GONNA MAKE IT EVEN LESS POSSIBLE FOR ME TO TURN ON THE LIGHTS OR TURN ON A FAN. [00:40:01] SO IF ANYONE, UH, INCLUDING YOU, I KNOW, UM, MR. AUSTIN, I REMEMBER YOU ON THE COUNCIL. I DON'T KNOW SOME OF YOU, BUT, UH, I JUST WANTED TO SAY, UH, I HAVE A FAN FOR SALE. WE CAN NEGOTIATE A PRICE AND THEN MAYBE I CAN PAY THE EXTRA MONEY THAT THESE, UH, FEES ARE, YOU KNOW, THE INCREASED RATES THAT YOU'RE GONNA VOTE ON. I, I DO KNOW THAT THIS IS PROBABLY A DONE DEAL, AND I DON'T MEAN TO MAKE LIGHT AND MAKE A JOKE OF THIS. PEOPLE WHO CAN BARELY MAKE IT RIGHT NOW, THIS COULD BE THE THING THAT PUTS THEM ON THE STREET. THIS COULD BE THE THING THAT GETS THEM EVICTED. THIS COULD BE THE THING THAT MAKES A LANDOWNER LANDLORD LIKE RAISE THE RATES BECAUSE HE CAN USE IT AS AN EXCUSE. THIS, WHAT YOU SAY, FIVE BUCKS A MONTH, THAT'S GONNA TURN INTO 50 BUCKS A MONTH. FOR THE LANDLORD WHO WANTS TO USE IT AS AN EXCUSE, PLEASE THINK ABOUT THE FEE PEOPLE THAT ARE BARELY MAKING IT BEFORE YOU GO FOR THIS RENT, HIKE OR A, UH, RATE HIKE. THANK YOU. THANKS SIR. OUR NEXT SPEAKER, MS. GRACE OIA. OKAY, THANK YOU. UM, MY NAME'S GRACE ELA, AND I LIVE IN THE NORTH LONG BEACH, AND I HAVE PROPERTY IN THE OR SOUTH. UM, NOT SURE WHETHER I OPPOSE OR NOT OPPOSE RATES AND EVERYTHING, BUT I DO WANNA SAY THOUGH, UM, THE CITY, THE UTILITIES, THE WATER UTILITIES HAVE THIS PROGRAM THAT I PARTICIPATED IN IN 2014 WHERE THE DROUGHT TOLERANT PROGRAM, THEY GAVE $3,600 AND, YOU KNOW, SOME FROM THE COUNTY AND THEN SOME FROM THE CITY. AND I TOOK ADVANTAGE OF THAT. AND, UH, SO I WAS, AND THEN I DO EVERYTHING I CAN TO CONSERVE WATER, NOT BECAUSE OF SAVING MONEY, BUT ALSO FOR THE TOTAL ENVIRONMENT THING. SO I'M CONCERNED ABOUT THAT. I TAKE COLD SHOWERS, ESPECIALLY THIS SUMMER. YOU SHOULD TRY IT. FEELS REFRESHING. BUT MY QUESTION, BUT MY STATEMENT IS, IS THIS, OKAY? SO THERE'S A, THERE'S SOME PEOPLE WHO ARE REALLY TRYING HARD TO CONSERVE AND, AND REALLY CONCERNED ABOUT WATER USAGE AND HOW THIS, WE DON'T HAVE ENOUGH WATER IN CALIFORNIA. IS THERE ANY WAY, SO I LOOK AT MY BILL AND I GO, OH, IT'S GOING UP. THEN I ASK MY NEIGHBORS, HOW'S YOURS? AND I GO, OH MY GOD, THERE'S WORSE. OKAY. SO I FELT LIKE, HEY, I'M DOING A GOOD JOB. OKAY? BUT IT, IT'S STILL LIKE, HEY, I DID ALL MY BEST TO DO THIS, AND IT JUST KEEPS GOING UP. THAT'S EVERYTHING. REFUSE WHATEVER. OKAY, SO IS THERE ANY IN INCENTIVE? SO ALSO MY BACKYARD, I DID MY ON MY OWN DAR TOLER, I HAVE PARKWAY. THAT'S STILL GRASS, BUT I DON'T EVEN WATER IT BY, BY THE TIME IT'S WINTER, IT'S ALL GREEN. SO MY, MY QUES MY STATEMENT IS, IS THERE A POSSIBILITY FOR PEOPLE LIKE ME WHEN YOU'RE LOOKING AT THE USAGE, LET'S SAY ME COMPARED TO THE OTHER PEOPLE, AND HOW MANY PEOPLE DO THEY LIVE IN THAT PARTICULAR HOUSEHOLD? COULD YOU GIVE SOME KIND OF A, LET'S SAY I USE SO MUCH GALLONS A A MONTH, AND I DON'T EVEN KNOW HOW MANY GALLONS I USE, BUT IF YOU SEE THE TIER ONE AND I'M STICKING TO TIER ONE FOR A PERIOD OF TIME, GIVING PEOPLE LIKE US MORE INCENTIVE, LIKE GIVE THEM AN INCENTIVE TO CONTINUE DOING IT. UM, UM, SO THAT IT WOULD MOTIVATE US TO CONTINUE DOING WHAT WE'RE DOING TO CONSERVE, RIGHT? UM, SO ANYWAY, I I, I GET THAT SOME PEOPLE HAVE A LARGER HOUSEHOLD, BUT THAT DEPENDS. SELF-REPORTING. YOU KNOW, WHO, WHO'S GONNA BELIEVE HOW MANY PEOPLE LIVE IN MY HOUSEHOLD? I SAY ONE, I MAY LIE THEY MAY BE FOUR, YOU KNOW, BUT WHAT I'M SAYING IS IF I'M KEEPING TO 50 A MONTH FOR LIKE SIX MONTHS, YOU KNOW, CAN YOU JUST LIKE, TAKE A LOOK AT THAT AND SEE WHO ARE THESE PEOPLE WHO'S REALLY CONSERVING FOR WHATEVER REASON, BUT THEY'RE CONSERVING. AND SO GIVE US A LITTLE BREAK. LIKE THE SOUTHERN CALIFORNIA EDISON DO, THEY JUST ANNOUNCED, LIKE THEY GAVE, I DON'T KNOW WHERE THE MONEY CAME FROM. I FORGET WHERE THE MONEY CAME FROM, BUT THEY WOULD GIVE YOU LIKE A REBATE. SO HOW ABOUT SOMETHING LIKE THAT? AS YOU KNOW, I THANK YOU FOR CONSERVING, AND I DON'T THINK THERE'S GONNA BE MANY OF US DOING THAT. I'M NOT SURE. BUT WHAT WOULD BE YOUR THRESHOLD? THANK YOU MS. ELA UP TO YOU TO FIGURE IT OUT. WE APPRECIATE YOUR COMMENTS. PLEASE STICK AROUND AND ASK THOSE QUESTIONS. THERE'S PLENTY OF PE UH, STAFF THAT CAN HELP YOU WITH THOSE. THANK YOU. THANK YOU. THAT'S ALL I HAVE PRESENT, SCOTT. OKAY. LAST CALL. I THINK WE'VE GONE THROUGH ALL THE CARDS. ANYONE ELSE WISH TO SPEAK? [00:45:02] SEEING NONE, UH, THE PUBLIC PROTEST PERIOD IS NOW CLOSED. UH, DO I HAVE ANY COMMENTS FROM OUR COMMISSIONERS? SEEING NO COMMENTS? OH, I'M SORRY. NO, GO AHEAD. COMMISSIONER AUSTIN. YEAH, FIRST OF ALL, I'D JUST LIKE TO THANK THE FOLKS FROM IN THE PUBLIC FOR COMING OUT THIS EVENING. UM, COMING TO A MEETING ON A THURSDAY NIGHT, UM, GIVING UP YOUR YOUR TIME, UM, MEANS A LOT. UH, AND THIS IS AN IMPORTANT HEARING THE DECISIONS MADE HERE IN AFFECT EVERYBODY IN THE CITY OF LONG BEACH. SO I REALLY DO APPRECIATE THE COMMENTS RELATED TO AFFORDABILITY, UM, AND CONSERVATION. I THINK THESE ARE KEY POINTS THAT, THAT I KNOW THAT THIS COMMISSION TAKES VERY, VERY SERIOUSLY. UM, AND IN OUR DE DELIBERATIONS GETTING TO THIS POINT, UH, WE DID AND IN FACT HAVE, UM, ROBUST DISCUSSIONS ABOUT AFFORDABILITY AND THE RATES. I, I, I LIKE TO JUST SAY THAT THIS IS NEVER PLEASANT TO, TO SAY WE'RE GONNA RAISE RATES. UM, WHEN I WAS ON THE CITY COUNCIL, I ALWAYS HAD CHALLENGES, UH, WITH RATE INCREASES, BUT AT THE SAME TIME, UM, IF YOU UNDERSTAND UTILITIES THE WAY I THINK MANY OF US DO, UM, IF WE DON'T KEEP PACE, IF WE SAY WE'RE NOT GONNA RAISE RATES THIS YEAR, NEXT YEAR IS GOING TO BE EVEN MORE DRAMATIC. UH, OR THE NEXT TIME IT'S GONNA BE MORE DRAMATIC. AND SO, UM, YOU SAW THE PIE CHART THERE. LONG BEACH REMAINS ONE OF THE LOWEST, UM, AND, AND COMPETITIVE UTILITIES IN THE STATE, UH, WHEN IT COMES TO COMPARABLE CITIES OF OUR SIZE. AND WE, AND I'LL TELL YOU, ME AS A COMMISSIONER HERE, WILL AND I, I THINK I SPEAK FOR MY COLLEAGUES AS WELL, WE'RE GONNA WORK TO ENSURE THAT WE, WE REMAIN, UM, AS, AS AFFORDABLE AS POSSIBLE, BUT DELIVERING THE BEST POSSIBLE SERVICES TO, TO THE RESIDENTS OF THE CITY OF LONG BEACH. AGAIN, THANK YOU FOR JOINING US THIS, THIS EVENING. THANK YOU, COMMISSIONER AUSTIN. ANY OTHER COMMISSIONER COMMENTS? YES, MA'AM. THANK YOU. UM, I'M GOING JUST FOLLOW UP WITH, UM, COMMISSIONER AUSTIN TALKED ABOUT AFFORDABILITY, UM, A KEY ISSUE IN THE STATE OF CALIFORNIA. THAT DISCUSSION IS PROBABLY BEING HAD ALL OVER PROP TWO 18 HEARINGS AND IN MANY CITIES, UM, AND IN MANY WATER AGENCIES BECAUSE, UH, AFFORDABILITY IS AN ISSUE. IT, IT REALLY NEEDS TO BE TACKLED AT THE STATE LEVEL. UM, THERE'S SOMETHING CALLED THE LOW INCOME RATE ASSISTANCE. I KNOW THEY'RE TRYING TO, TO SEE IF WE CAN MAYBE MOVE FORWARD ON THAT. UM, BUT A LOT OF THAT WILL HAVE TO HAPPEN AT, AT THAT LEVEL. UM, THE SECOND THING IS, AS YOU KNOW, THE GOVERNOR SEVERAL YEARS AGO MADE, UH, CONSERVATION IS A WAY OF LIFE, A THEME FOR CALIFORNIA, WHICH WE DID A REALLY GOOD JOB, CALIFORNIA DID AN EXCELLENT JOB ON, ON, UH, CONSERVING WATER. UM, AND OUR DEMAND HAS BEEN DOWN, WHICH IS, I IRONY BECAUSE THE DEMAND HAS GONE DOWN, BECAUSE WE'VE ALL DONE SUCH A GOOD JOB OF THAT. BUT THEN THE COSTS ARE FIXED AS YOU, AS YOU KNOW, THERE'S COSTS THAT ARE JUST FIXED. AND SO THERE'S THAT LITTLE THRESHOLD THERE THAT WE HAVE TO, UM, TO FILL. UM, BUT I ENCOURAGE ALL OF YOU, BECAUSE YOU CAME OUT HERE ON A THURSDAY NIGHT, I REALLY, WE REALLY APPRECIATE THAT. UM, TO STAY, STAY INVOLVED IN THE STAY ENGAGED AND WATER WITHIN THE STATE, AS YOU'VE SEEN RIGHT NOW, ESPECIALLY WITH THE COLORADO RIVER, IS A HUGE ISSUE. UM, SO WE WE'RE IN, WE'RE IN TROUBLE. THERE'S A LOT GOING ON WITH REGARDS TO THE CHANGE OF CLIMATE, UH, ON THE RIVER, CALIFORNIA. WE'RE LUCKY HERE BECAUSE IN CALIFORNIA WE GET OUR WATER FROM TWO PLACES. ONE IS FROM THE, FROM UP NORTH, THE, THE, THE DELTA AREA, AND THEN THE OTHER IS THE, UH, THE COLORADO RIVER. BUT THE COLORADO RIVER WAS OVER ALLOCATED ALMOST A HUNDRED YEARS AGO. AND SO WE'RE DEALING WITH THEN MAKING DECISIONS AT THAT LEVEL NOW. SO, UM, I ENCOURAGE YOU TO STAY INVOLVED AND TO STAY, UH, BECAUSE WATER REALLY IS THE ISSUE RIGHT NOW. IT IS A HUGE ISSUE IN, IN, IN OUR, IN OUR COUNTRY, AND ESPECIALLY IN CALIFORNIA, IN THE LOWER BASIN. SO THANK YOU AGAIN FOR BEING HERE TONIGHT. THANK YOU, COMMISSIONER CORDELL. ANY OTHER COMMENTS? UH, UH, JUST REAL QUICK, EVEN, UH, THOSE OF YOU THAT, THAT DID NOT, UH, SPEAK KIND OF PUBLIC SPEAKING IS NOT EVERYONE'S THING. UH, IF QUESTIONS HAVE COME TO MIND DURING THE COURSE OF THIS HEARING, UH, AGAIN, STAFF IS GOING TO BE HERE. ASK THEM ANYTHING AND EVERYTHING. THEY'RE MORE THAN HAPPY, UH, TO ANSWER YOUR QUESTIONS. THEY'LL STAY AS LATE AS, AS NEED BE. UH, SO TO CLOSE THIS OUT, UH, WE'VE GOT CITY ATTORNEY COMMENTS. UH, [ANNOUNCEMENTS] THE CITY ATTORNEY WILL NOW MAKE, UH, COMMENTS REGARDING THE PUBLIC HEARING. UH, DURING THE COURSE OF THE PROTEST PERIOD, WHICH IS NOW CLOSED, WE RECEIVED A TOTAL OF 390 WRITTEN PROTESTS. 222 OF THOSE WERE MAIL-IN LETTERS. 163 WERE EMAILS, AND FIVE WERE IN PERSON PROTESTS SUBMITTED THIS EVENING, NONE OF WHICH HAVE BEEN CERTIFIED BY THE CITY CLERK. BUT EVEN ASSUMING THAT ALL [00:50:01] OF THESE PROTESTS ARE CERTIFIED BY THE CLERK, THIS NUMBER DOES NOT REPRESENT A MAJORITY OF THE RATE PAYERS, WHICH IS ABOUT 45,001 PROTESTS AS REQUIRED BY STATE LAW. THEREFORE, THE PROTEST IS UNSUCCESSFUL. THE PROPOSED INCREASES WILL BE CONSIDERED FOR FINAL APPROVAL BY THE CITY COUNCIL AT ITS MEETING ON SEPTEMBER 8TH, 2026. IF THE CITY COUNCIL APPROVES THE PROPOSED INCREASES ON SEPTEMBER 8TH, THE NEW RATES ADOPTED BY THE BOARD, UH, CAN TAKE EFFECT ON OCTOBER 1ST, 2026. THANK YOU. THAT BEING SAID, UH, THE SPECIAL MEETING PROP TWO 18, UH, AND THE PUBLIC HEARING IS NOW ADJOURNED. [ADJOURNMENT] OH. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.