Oct 15, 2026 Utilities Commission Infrastructure Committee

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WE'D LIKE TO CALL THIS MEETING

[CALL TO ORDER]

UM, DINA, CAN YOU DO THE ROLL CALL PLEASE? CHAIR

[ROLL CALL]

I'M HERE.

MEMBER PARKIN.

THANK YOU.

ALRIGHT, SO FIRST ON THE AGENDA IS TO APPROVE

[1. 26-56467 Recommendation to approve August 6, 2026 Infrastructure Committee meeting minutes.       Suggested Action: Approve recommendation. ]

SO MOVED SECOND.

IS THERE ANY, UM, PUBLIC COMMENT, HEARING NONE.

UM, ANY COMMISSIONER COMMENTS? I'LL JUST SAY WE HAD A NICE MEETING ON AUGUST 6TH.

ALL IN FAVOR? AYE.

AYE.

ALRIGHT, ON, UH, ITEM NUMBER TWO.

[2. 26-56468 Recommendation to receive and file a presentation regarding Long Beach Public Utilities Department (LBPUD) warehouse operations, the role of inventory in supporting utility operations, and planned efforts to modernize warehouse inventory management, reporting, and department resources.       Suggested Action: Approve recommendation. ]

UM, I'D LIKE TO, IS THERE A MOTION TO RECEIVE A FILE? I MOVE AND I'LL DO A SECOND.

UH, WE'LL CALL ON ARMANDO ARMANDO, UM, FOR PRESENTATION.

WELCOME, ARMANDO.

GOOD MORNING COMMISSIONERS.

UH, MY NAME'S ARMANDO.

OH, MY NAME'S AR I 20, SORRY.

UH, MY NAME'S ARMAND .

UM, UH, TWO MONTHS INTO THIS ROLE.

SO I'M MANAGER OF SUPPORT SERVICES, A LITTLE BACKGROUND BY MYSELF, SO MANAGER OF SUPPORT SERVICES.

WHAT THAT ENTAILS IS THE WAREHOUSE AND PURCHASING TEAM.

UH, PRIOR TO JOINING THE UTILITY DEPARTMENT, I SPENT THE PAST THREE YEARS WITH THE LONG BEACH FIRE DEPARTMENT AS A FINANCIAL ANALYST THERE.

AND THEN PRIOR TO THAT, I SPENT SIX YEARS WITH LONG BEACH WATER.

SO, IN ALL, I'VE BEEN 10 YEAR, GOING ON 10 YEARS WITH THE CITY OF LONG BEACH.

UM, A LITTLE MORE BACKGROUND ABOUT MYSELF.

BORN AND RAISED IN LONG BEACH.

SO PROUD LONG BEACH, UH, ALUMNI TO LONG BEACH POLY AND LONG BEACH, UH, STATE, SO, AND NOW RAISED IN A FAMILY IN LONG BEACH.

SO PROUD TO BE LONG BEACH.

SO THAT BEING SAID, I'LL GO AHEAD AND GET STARTED WITH THIS PRESENTATION.

SO, UM, HERE TO, JUST TO GIVE AN OVERVIEW OF UTILITIES, WAREHOUSE OPERATIONS, WHY MAINTAINING INVENTORY IS IMPORTANT TO UTILITIES AND HOW WE PLAN TO MODERNIZE OUR WAREHOUSE OPERATIONS TO BETTER SUPPORT THE DEPARTMENT.

SO, I'D LIKE TO START BY LOOKING AT THE WAREHOUSE, WAREHOUSE AS MORE THAN SIMPLY A PLACE WHERE WE STORE MATERIAL.

WHEN WE THINK ABOUT A WAREHOUSE, THE FIRST THING THAT MAY COME TO MIND IS STORAGE.

BUT FOR UTILITIES, THE WAREHOUSE IS MUCH MORE THAN THAT.

THE WAREHOUSE HELPS ENSURE THAT MATERIALS ARE AVAILABLE TO SUPPORT GAS, WATER, AND SEWER OPERATIONS.

EMERGENCY REPAIRS AND MAINTENANCE CONSTRUCTION PROJECTS, INFRAS INFRASTRUCTURE IMPROVEMENTS, ABLE TO EMPLOY PPE AND SAFETY SUPPLIES, AND DAY-TO-DAY OPERATIONS ITEMS DRAINED FROM CUSTODIAL SUPPLIES TO PPES TO FITTINGS AND PIPES, AND TO BACKFILL MATERIAL.

SO THE PURPOSE OF THE WAREHOUSE ISN'T TO ENSURE OUR CREWS HAVE THE MATERIALS AND SUPPLIES THEY NEED WHEN THEY NEED THEM, AND TO, AND TO PERFORM THEIR WORK SAFELY AND EFFECTIVELY.

SO, WHY DO WE MAINTAIN INVENTORIES INSTEAD OF SIMPLY PURCHASING MATERIALS AS THEY ARE NEEDED? INVENTORY IS MAINTAINED FOR EMERGENCY RESPONSE WHERE MATERIALS MAY BE NEEDED IMMEDIATELY, IMMEDIATELY FOR UNEXPECTED REPAIR LEAD TIME.

SO CERTAIN SPECIALIZED EQUIPMENT, UH, REQUIRES SIGNIFICANT, UH, TIME TO, FROM THE MANUFACTURERS AND SUPPLIERS, PLANT PROJECTS WHERE MATERIALS MAY BE PURCHASED IN ADVANCE TO ENSURE THAT ARE AVAILABLE WHEN CONSTRUCTION BEGINS.

UH, SUPPLY CHAIN RISK.

SO INVENTORY PROVIDES PROTECTION AGAINST SHORTAGES, MANUFACTURING DELAYS, TRANSPORTATION ISSUES, AND OTHER DISRUPTIONS.

EMPLOYEE SAFETY AND PPE, MAINTAINING APPROPRIATE PPE AND SAFE SAFELY SUPPLIES.

SAFETY SUPPLIES HELPS ENSURE FIELD EMPLOYEES HAVE ACCESS TO REQUIRED PROTECTIVE EQUIPMENT AS NEEDED.

SO, INVENTORY IS NOT SIMPLY MATERIAL CITY ON THE SHELF, IT IS OPERATIONAL READINESS.

SO NOW I WANNA TAKE A LOOK AT, UM, UH, WAREHOUSE LIFECYCLE.

SO EFFECTIVE INVENTORY MANAGEMENT STARTS BEFORE MATERIAL EVEN ARRIVES IN THE WAREHOUSE.

SO IT STARTS WITH GOING THROUGH A PROCUREMENT PROCESS AND EXECUTING A CONTRACT.

A CONTRACT HELPS ESTABLISH THE SUPPLIERS PRICING, CONTRACT TERMS, AND PURCHASING MECHANISMS IN PLACE SO THAT MATERIALS CAN BE ORDERED.

ONCE ORDERED, OUR WAREHOUSE RECEIVES THE MATERIALS WAREHOUSE PERSONNEL EXPECTS INSPECTS THE ITEMS TO ENSURE COMPLIANCE AND MATERIALS ARE NOT DEFECTIVE, STORES THE ITEMS APPROPRIATELY, AND MAINTAIN ACCOUNTABILITY FOR THOSE ITEMS AS MATERIALS ARE ISSUED AND, AND USED BY OUR FIELD CREWS.

UH, FOR A PROJECT OR REPAIR OR MAINTENANCE TO UTILITY INFRASTRUCTURE, THE WAREHOUSE HAS TO ALSO UNDERSTAND WHEN AND HOW TO REPLENISH THESE, UH, THESE ITEMS. AND AT THE END OF THE LIFE CYCLE, WE HAVE OUR CUSTOMERS AND RESIDENTS.

OUR SUPPORT SERVICES TEAM PLAYS AN IMPORTANT ROLE IN THE FRONT END OF THIS LIFECYCLE FROM

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NOW THIS LEADS TO MY NEXT SLIDE, WHICH IS FINDING THE RIGHT BALANCE.

SO THIS SLIDE DEMONSTRATE WHY FINDING THE RIGHT INVENTORY BALANCE IS IMPORTANT FOR UTILITIES AND WHY HAVING THE APPROPRIATE IN INVENTORY AVAILABLE CAN MAKE A SIGNIFICANT OPERATIONAL DIFFERENCE.

AT THE TOP, WE HAVE A REPAIR OR PROJECT WHERE THE REQUIRED MATERIAL IS ALREADY AN INVENTORY, THE MATERIAL IS NEEDED, IS AVAILABLE IN THE WAREHOUSE INVENTORY, THE CREW CAN RESPOND AND THE WORK CAN MOVE FORWARD.

VERSUS THE BOTTOM SHOWS WHAT CAN HAPPEN WHEN THE SAME MATERIAL IS NOT AVAILABLE IN INVENTORY.

WE'LL STILL HAVE THE OPERATIONAL NEED, BUT NOT, BUT NOW ADDITIONAL STEPS ARE INTRODUCED.

WE, WE MAY NEED TO INITIATE A PROCUREMENT, IDENTIFY AN AVAILABLE SUPPLIER, ISSUE THE PURCHASE ORDER, AND THEN WAIT FOR THE VENDOR'S LEAD TIME BEFORE THE MATERIALS AVAILABLE TO OUR CREW.

AND THEN FOR SPECIALIZED MATERIAL, THAT LEAD TIME COULD BE SIGNIFICANT.

SO DURING AN EMERGENCY OR CRITICAL REPAIR, THOSE ADDITIONAL STEPS CAN AFFECT HOW QUICKLY WE ARE ABLE TO RESPOND AND GET THE SERVICE RESTORED TO OUR CUSTOMERS AND RESIDENTS.

SO THIS DOES NOT MEAN THAT WE SHOULD STOCK EVERY POSSIBLE ITEM OR, OR MAINTAIN UNLIMITED QUANTITIES.

THE GOAL IS TO FIND THE RIGHT BALANCE, UNDERSTANDING WHAT MATERIALS ARE CRITICAL, HOW FREQUENTLY THEY ARE USED, HOW LONG THEY TAKE TO OBTAIN, AND WHAT LEVEL OF INVENTORY IS APPROPRIATE BASED ON OPERATIONAL RISK.

SO FINDING THE RIGHT BALANCE SO TOO LITTLE CAN LEAD TO EMERGENCY MATERIALS MAY NOT BE AVAILABLE.

INVENTORY CAN DELAY REPAIRS AND, AND FIELD OPERATIONS.

WE WOULD HAVE TO EXPEDITE PURCHASES WHAT MAY LEAD TO NOT COMPLIANT WITH PROCUREMENT POLICIES AND PROCEDURES DUE TO THE URGENCY, UH, POTENTIAL SERVICE IMPACTS.

AND NOW VICE VERSA, HAVING TOO MUCH.

IT COMES INTO EXCESSIVE IN INVENTORY, CAN CONSUME SPACE IN OUR WAREHOUSES, UM, TIES UP FUNDING AND INCREASE THE OBSOLETE RISK OF, UM, ITEMS AND MATERIALS.

HIGHER QUALITY DOES NOT AUTOMATICALLY MEAN WE HAVE EXCESS INVENTORY.

WE FIRST NEED TO UNDERSTAND WHY THE IS BEING HELD, ITS USAGE LEAD TIME, AND WHETHER IT SUPPORTS AN UPCOMING PROJECT.

INVENTORY LEVELS ARE DRIVEN BY OPERATIONAL NEEDS.

THE OBJECTIVES SHOULD THEREFORE BE THE RIGHT MATERIAL AND THE RIGHT QUANTITY AT THE RIGHT TIME WITH THE APPROPRIATE CONTROLS AND TO MAINTAIN THE APPROPRIATE INVENTORY NECESSARY TO SUPPORT OPERATIONS WHILE REMAINING RESPONSIBLE STEWARDS OF PUBLIC RESOURCES.

AND THAT BRINGS US TO WHERE WE ARE TODAY.

SO OUR CURRENT SYSTEM IS MUNI AND SIMPLER, WHICH ARE, UM, CITY FINANCIAL SOFTWARES.

UH, THEY'RE USED TO TRACK INVENTORY AND REPORTING.

SO INFORMATION IS AVAILABLE, BUT IT'S NOT USER FRIENDLY AND CAN REQUIRE TRAINING FROM STAFF, AND IT'S NOT ALWAYS AVAILABLE TO EVERYONE OUR REPORTING AND METRICS.

SO OBTAINING WAREHOUSE METRICS, TRENDS AND STATISTICS REQUIRES A LOT OF MANUAL RESEARCH AND DATA AND VERY TIME CONSUMING.

SO THERE REALLY ISN'T ANY, UH, READILY AVAILABLE DASHBOARDS FOR MANAGEMENT OR OPERATIONAL, UH, REPORTING INVENTORY VISIBILITY.

THERE'S CURRENTLY NO DEPARTMENT-WIDE CATALOG OR WAREHOUSE STOCK ITEMS. EMPLOYEES DO NOT HAVE A SIMPLE RESOURCE TO, UH, SIMPLE RESOURCE TO SHIRT SEARCH.

WHAT MATERIALS OR PPE ARE CARRIED BY THE WAREHOUSES INVENTORY MANAGEMENT.

SO OUR INVENTORY LEVELS AND REORDER NEEDS ARE NOT EASILY VISIBLE THROUGH A CENTRALIZED REPORTING TOOL.

UM, IDENTIFYING LOW STOCK OUT OF STOCK OR REPLENISHMENT NEEDS ALSO REQUIRE EXTENSIVE RESEARCH.

UH, AND THEN FOR DEPARTMENT RESOURCES, THIS IS, THERE'S CURRENTLY NO CENTRALIZED DEPARTMENT RESOURCE FOR EMPLOYEES TO ACCESS WAREHOUSE INVENTORY, INFORMATION, MATERIAL AVAILABILITY, OR RELATED WAREHOUSE GUIDANCE.

SO WE NEED TO BUILD UPON EXISTING OPERATIONS AS THIS OPPORTUNITY IS TO MAKE THE INFORMATION WE ALREADY HAVE MORE ACCESSIBLE, VISIBLE, AND USEFUL FOR DECISION MAKING.

SO THIS NEXT SLIDE IS, WHERE ARE WE GOING? SO OUR MODERN MODERNIZATION EFFORTS CENTERED AROUND FOUR AREAS, STANDARDIZATION, TECHNOLOGY, DATA AND ANALYTICS, AND ACCESSIBILITY.

WITH STANDARDIZATION, WE'RE LOOKING THROUGH CREATING SOPS, RECEIVING STANDARDS, INVENTORY PROCEDURES, CYCLE COUNTS, AND I INVENTORY MANAGEMENT.

WE WANT CONSISTENT PROCEDURES.

OUR TECHNOLOGY, WE WANNA LEVERAGE ANY KIND OF POWER APPS, UH, THE MUNI DATA.

WE HAVE DASHBOARDS, UH, ELECTRONIC TOOLS AND WORKFLOW AUTOMATION.

SO WE ARE CURRENTLY IN THE PROCESS, UH OH.

SO RATHER THAN RELYING ON DATA REPORTS, OUR GOAL IS TO PROVIDE INFORMATION THAT COULD BE SEARCHED, FILTERED, AND QUICKLY UNDER UNDERSTOOD.

THIS GIVES STAFF AND MANAGEMENT BETTER VISIBILITY AND INVENTORY AND CONDITIONS.

SO WE ARE CURRENTLY BEGINNING

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SO RATHER THAN REVIEWING A DATA REPORT, UH, THIS TOOL WILL ALLOW USERS TO SEARCH INVENTORY, IDENTIFY LOW STOCK OR OUTTA STOCK ITEMS, REVIEW QUANTITY ON HAND, AND BUT, AND BETTER UNDERSTAND WHAT IS HAPPENING IN THE WAREHOUSES.

SO FOR DATA, DATA AND ANALYTICS, UH, WE'RE GOING TO DO USE USELESS TRENDS, REORDER POINTS, STOCK LEVELS, LEAD TIMES, AND INVENTORY PER, UH, PERFORMANCES.

SO, SO THAT FUTURE ANALYSIS CAN HELP IDENTIFY WHETHER QUANTITIES REMAIN APPROPRIATE, UH, AND TURNING INVENTORY DATA INTO OUR MANAGEMENT RESOURCE AND ACCESSIBILITY.

WE WANNA, WE WANT WAREHOUSE INFORMATION TO BE A RESOURCE FOR THE DEPARTMENT, NOT SOMETHING THAT IS ONLY ACCESSIBLE OR UNDERSTOOD BY OUR WAREHOUSE PERSONNEL.

SO MODERNIZATION IS NOT JUST ABOUT MAKING THE WAREHOUSE MORE EFFICIENT.

WE WANT THE WAREHOUSE TO BECOME AN ACCESSIBLE RESOURCE TO SUPPORT OPERATIONAL AND MANAGEMENT DECISIONS.

SO ULTIMATELY, THIS IS WHERE WE WANT OUR WAREHOUSE OPERATIONS TO BE RELIABLE.

WHERE WE HAVE CRITICAL MATERIALS ARE AVAILABLE WHEN NEEDED, ACCOUNTABLE, STRONG INVENTORY CONTROLS AND ACCURATE RECORDS, EFFICIENT, MAINTAINING APPROPRIATE INVENTORY LEVELS AND EFFECTIVE WAREHOUSE PROCESSES, VISIBLE BETTER, BETTER ACCESS TO INVENTORY INFORMATION SO EMPLOYEES AND MANAGEMENT CAN MORE EASILY UNDERSTAND WHAT WE HAVE AND WHERE ATTENTION MAY BE NEEDED.

PREPARED MATERIALS AVAILABLE FOR EMERGENCIES AND OPERATIONAL NEEDS.

MODERN STANDARDIZED PROCESSES, LEVERAGE TECHNOLOGY AND ANALYTICS TO SUPPORT THE DEPAR DEPARTMENT'S DECISIONS.

A WAREHOUSE MAY OPERATE BEHIND THE SCENES, BUT IT PLAYS AN IMPORTANT ROLE IN KEEPING UTILITIES OPERATIONS MOVING.

OUR EFFORTS ARE FOCUSED ON MAKING THAT OPERATION MORE VISIBLE, EFFICIENT, ACCOUNTABLE, AND USEFUL TO THE ENTIRE DEPARTMENT.

WAREHOUSE SUCCESS IS NOT MEASURED SIMPLY BY HOW MUCH INVENTORY IS IN THE WAREHOUSE.

IT IS MEASURED BY WHETHER WE CAN SUPPORT OPERATION OPERATIONS WHILE REMAINING RESPONSIBLE STEWARD STEWARDS OF PUBLIC RESOURCES.

UH, WITH THAT BEING SAID, THAT, UH, CONCLUDES MY PRESENTATION, READ THIS, AND SO ANY QUESTIONS? I'M OPEN TO ANY QUESTIONS.

THANK YOU.

UM, GREAT REPORT.

I APPRECIATE IT.

UM, CAN YOU TALK A LITTLE BIT ABOUT THE CURRENT CONDITIONS? UM, I'VE, I'VE GIVEN, I THINK, UH, CHAIR AUSTIN AND I HAVE HAD A OPPORTUNITY TO TOUR THE WAREHOUSE OF THE GAS DEPARTMENT HAS, UH, I THINK SOME LIMITATIONS AND MAYBE SOME ISSUES THERE.

I DON'T, AND WE DID ALSO HERE ON THIS CAMPUS, THE WAREHOUSE IN THE NEW PLAN TO CONSOLIDATE, UH, THE SIZE.

CAN WE IMPLEMENT A LOT OF THE THINGS THAT YOU'RE TALKING ABOUT TO GET WHERE WE NEED TO BE? YES.

SO THE, MY GOAL IS TO HAVE BOTH WAREHOUSES WITH THE SAME STANDARDS, SAME KIND OF, UH, TECHNOLOGY.

UM, JUST STANDARDIZE AND HARMONIZE BOTH WAREHOUSES INTO ONE.

SO DEFINITELY WE'LL BE WORKING TOGETHER AND IT'LL BE ONE WAREHOUSE AT THE NEW FACILITY.

OR WILL YOU STILL HAVE TWO WAREHOUSES, OR DO WE KNOW YET? SORRY, THAT, THAT ONE I JUMPED RIGHT INTO THAT.

UH, NO, THE GOAL IS, THE GOAL IS ONE, BUT WE'RE STILL TRYING TO LOOK AT THE FEASIBILITY IF THAT'S, IF THAT'S GONNA WORK, IF IT'S EVEN FEASIBLE.

OKAY.

THANK YOU.

I APPRECIATE IT.

I, I'LL JUST ADD, YES, UH, WE DID HAVE THE OPPORTUNITY TO TOUR, UM, TOUR MOST OF THE FACILITIES AND, UH, WE SAW THE WAREHOUSE AND RECOGNIZED THAT THERE WAS SOME, SOME, UH, ROOM FOR, FOR IMPROVEMENTS AND, AND POSSIBLE EFFICIENCIES, UH, THROUGH, I DUNNO IF THE MANAGEMENT SYSTEMS, UH, JUST IN TIME.

I MEAN, I COME FROM A PRODUCTION BACKGROUND AS WELL.

AND SO, UM, YOU KNOW, WE SAW SUPPLIES THAT WERE, YOU KNOW, PROBABLY SAT FOR YEARS AT A TIME, YOU KNOW, UM, WITHOUT, UM, REAL RHYME OR REASON.

AND SO THIS IS ENCOURAGING ON THAT, THAT, UM, WE'RE MOVING IN THE RIGHT DIRECTION IN TERMS OF MODERNIZATION.

UM, THE DASHBOARD, I WANTED TO TO KNOW, IS THIS GONNA BE DONE IN-HOUSE IN TERMS OF, UH, THE, THE CHANGES THAT, THAT YOU ARE PROPOSING HERE OR THAT YOU'RE REPORTING ON? OR ARE WE GONNA BE UTILIZING OUTSIDE CONSULTANTS SUPPORT? IT'S ALL GONNA BE DONE IN-HOUSE.

OKAY.

SO WE'LL BE DOING ALL THIS.

THAT IS, UH, VERY ENCOURAGING.

UH, SO THANK YOU FOR THE, FOR THE VERY DETAILED REPORT.

UM, AND, UH, LOOK FORWARD TO, UH, GETTING UPDATED WHEN, WHEN THESE, UH, THESE IMPROVEMENTS ARE ARE IN, IN EFFECT.

IS THERE ANY OTHER, ANY PUBLIC COMMENT? I ASKED FOR PUBLIC COMMENT.

WE SPOKEN BEHIND THE RAILS.

ALL IN FAVOR OF, UH, RECEIVING AND FILING A REPORT? SAY AYE.

AYE.

AYE.

UM, MOVING ON.

AND FOR THE SAKE OF, UH, UM, HOUSEKEEPING, UM, I HAVE A TIME LIMITATION TODAY.

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UH, AND, UM, SO IS THERE A PRIORITIZATION IN TERMS OF ITEMS YOU'D LIKE TO MOVE FORWARD WITH IN TERMS OF STAFF? I THINK, I THINK THE, UH, THE ORDER IS, IS ACCURATE TO MEET YOUR TIME CONSTRAINTS.

GREAT.

SO WE'LL GO TO, UH, ITEM NUMBER THREE.

AND THAT IS, UM, AN ITEM

[3. 26-56469 Recommendation to receive and file a presentation regarding the Fiscal Year 2026 Water and Sewer Capital Improvement Program (CIP), including major accomplishments, current project challenges, and upcoming priorities.       Suggested Action: Approve recommendation. ]

DO WE HAVE A MOTION TO RECEIVE AND FILE SECOND CALLING ON THOMAS.

THANK YOU.

THANK YOU.

COMMISSIONER AUSTIN.

UH, COMMISSIONER PARKINS.

UH, I'LL GO THROUGH THIS, UH, PRESENTATION, UH, FAIRLY BRIEF GIVEN THE TIME CONSTRAINT THAT YOU HAVE.

UH, BUT IT'S A BROAD TOPIC, SO FEEL FREE TO STOP ME AND ASK QUESTIONS AS I GO THROUGH THE PRESENTATION.

SO, UH, YOU KNOW, THIS IS THE OVERALL FLOW OR THE CONTENT OF THE PRESENTATION.

UM, WE'LL START WITH A BRIEF OVERVIEW, UH, BY THE NUMBERS.

WE'LL LOOK AT, YOU KNOW, HOW MANY PROJECTS WE HAVE IN CONSTRUCTION, HOW MANY WE HAVE IN DESIGN, UH, AND SO FORTH.

AND, YOU KNOW, AND WE'LL TAKE IT A STEP BACK AND KIND OF SHOW YOU IN A VERY, VERY, VERY BRIEF AND, UM, SIMPLIFIED FORM ON HOW WE DEVELOP PROJECTS, WHERE WE START FROM PLANNING TO CONSTRUCTION, HOW WE TRACK THESE PROJECTS FROM A FINANCIAL STANDPOINT, UM, OUT IN THE FIELD PERFORMANCE WIDE, THAT THERE IS A DIFFERENT WAY OF TRACKING.

BUT TODAY WE'LL JUST LOOK AT HOW WE TRACK IT FINANCIALLY, UM, WHAT THE GENERAL DISTRIBUTION OF OUR PROJECTS LOOK LIKE.

HOW MUCH MONEY DO WE INVEST ON WELLS PIPELINES, ET CETERA.

UH, PROJECT DELIVERY AND SUCCESS.

UH, AS AN ENGINEERING TEAM, WE FOCUS ON THE DESIGN PART.

SO, UM, YOU KNOW, WE'LL SHARE SOME OF THE, THE DESIGN, UH, SUCCESSES THAT WE HAVE FOR THE DELIVERY, THE DELIVERABLES WE WERE ABLE TO ACHIEVE OVER THE PAST YEAR.

UH, CIP CONSTRUCTION PROJECTS COMPLETED.

UH, WE'LL CHECK, WE'LL TALK A LITTLE BIT ABOUT SOME OF THE KEY CHALLENGES THAT WE'RE FACING, THE TIME IMPACT, UM, UH, ISSUES THAT WE ARE CURRENTLY, UH, DEALING WITH AND SOME OF THE SOLUTIONS THAT WE HAVE IMPLEMENTED.

THERE'S ALSO SOME CHANGES WE WANTED TO, YOU KNOW, SHARE WITH YOU WITH REGARDS TO ON HOW WE MANAGE OUR CAPITAL IMPROVEMENT PROJECTS THAT WE IMPLEMENTED OVER THE LAST YEAR.

UM, AND THEN WE WOULD GO INTO SOME ANTICIPATED IMPACTS, UH, FOR FISCAL YEAR 2027.

UH, JUST TO GIVE YOU A HEADS UP OF WHAT WE'RE EXPECTING, THEN WE WILL PICK A FEW PROJECTS, THE HIGH PROFILE PROJECTS THAT, UM, UH, WE FEEL THAT THE BOARD SHOULD HAVE, YOU KNOW, A BROADER PERSPECTIVE OR UNDERSTANDING OF.

SO AS FAR AS OVERVIEW, YOU KNOW, THERE'S, UH, WATER, CIP AND, AND, AND SEWER.

CIP.

WE DIVIDED THEM IN THIS LIGHT IN SUCH A FASHION.

SO WE MANAGE ROUGHLY ABOUT 126 PROJECT OF, UH, 126.

UH, 2085 OF THEM ARE ACTIVE.

SO WHEN I SAY ACTIVE, WHAT THAT MEANS IS THERE'S A STAFF ASSIGNED TO IT.

IT'S ACTIVELY IN DESIGN OR CONSTRUCTION.

UH, SO THE PROJECT IS PROGRESSING.

THE PROJECTS THAT ARE INACTIVE OR THE PROJECTS THAT, UH, WE, WE CONSIDER NOT, UM, UH, TAKING PLACE RIGHT NOW ARE TO TAKE PLACE WITHIN THE NEXT TWO TO THREE YEARS UP TO A FIVE YEAR TERM.

UH, SO WE HAVE ABOUT 41 INACTIVE PROJECTS THAT HASN'T BEEN ASSIGNED TO STAFF, UH, AT THE MOMENT.

UM, OUT OF THE ACTIVE ONES, THERE ARE THREE THAT ARE IN-HOUSE DESIGN AND THREE THAT ARE, UH, BEING CONSTRUCTED IN-HOUSE, UH, WITH OUR, UH, IN COORDINATION WITH OUR OPERATIONS GROUP.

UM, MAJORITY OF THE PROJECTS, ABOUT 32 OF THEM, THEY'RE, UH, CONSULTED OUT FOR DESIGN.

HOWEVER, STAFF REVIEWS THE DESIGN AT 30, 60, 90, AND A HUNDRED PERCENT, UH, AND ALSO PREPARE WHAT WE CALL THE FRONT END DOCUMENTS OR THE SPECIFICATIONS FOR THE, FOR THE PROJECT AND LEAD IT FROM START TO COMPLETION.

UH, WE HAVE ABOUT FAC, UH, WE HAVE ABOUT NINE FACILITIES PROJECTS THAT ARE DONE BY OUR OPERATIONS GROUP, UM, UH, THROUGH A CONTRACTOR.

WE HAVE, UH, TWO PROJECTS IN, IN TREATMENT FACILITIES THAT ARE CURRENTLY IN PLANNING OR DESIGN.

AND ABOUT THREE IN CONSTRUCTION THAT KIND OF SUMMARIZES THE WATER SIDE.

ON THE SEWER SIDE, WE HAVE A TOTAL OF ABOUT 103, UH, PROJECTS OFF OF THOSE.

45 ARE ACTIVE AGAIN, MEANING THEY'RE, THEY, WE HAVE STAFF ASSIGNED TO THEM AND CURRENTLY PROGRESSING.

UH, 17 ARE IN DESIGN AND ABOUT 22 ARE IN CONSTRUCTION.

11 OF THE 22 ARE WHAT WE REFER TO E WHAT WE REFER TO AS ESRS.

THESE ARE EMERGENCY SEWER REPAIRS THAT WE CAN, THEY COME ACROSS.

THESE ARE POINT REPAIRS WHEN WE HAVE A SPILL OR A LEAK OF SOME SORT.

AND OUR, UH, AS PART OF OUR

[00:20:01]

UH, FACILITIES WISE.

ON THE SEWER SIDE, WE HAVE ABOUT THREE, AND THAT MAINLY HAS TO DO WITH SCADA AND CONTROL, UH, RELATED IMPROVEMENTS.

UH, TREATMENT PLAN HAVE THREE AS WELL.

AND OVER THE NEXT FIVE YEARS, WE HAVE ABOUT 58 PROJECTS THAT WE PLAN TO IMPLEMENT.

NOW, THIS INACTIVE COMPONENT WILL CHANGE FROM TIME TO TIME AS WE COMPLETE OUR PLANNING DOCUMENTS.

THERE WILL BE MORE PROJECTS THAT WILL BE ADDED, THE INACTIVE LIST AS WE, UH, PLAN OUR EXPENSE, UH, CASHFLOW, UH, IN, IN WHICH YOU WILL SEE IN THE UPCOMING SLIDES.

SO, TO MANAGE THESE PROJECTS, UM, UH, OF, YOU KNOW, THE 1 26 AND 103 ON THE SEWER AND WATER SIDE, WE HAVE ABOUT 15 ENGINEERING STAFF MEMBERS, UH, TO OVERSEE THESE PROJECTS FROM START TO COMPLETION.

UH, MINOR, SOME OF THEM DONE IN-HOUSE, MAJORITY OF THEM DONE BY CONSULTANT AND CONTRACTORS.

SO THIS IS KIND OF A SIMPLIFIED VERSION OF HOW WE DEVELOP OUR CIP.

IT ALL STARTS WITH PLANNING.

SO, YOU KNOW, EVERY FIVE YEARS, THREE YEARS OR SO, WE DEVELOP THESE PLANNING DOCUMENTS, SUCH AS THE WATER DISTRIBUTION MASTER PLAN.

AS PART OF THAT PLANNING DOCUMENT, ONE OF THE PRODUCTS IS A PRIORITIZED LIST OF CIP WITH AN ENGINEER'S ESTIMATE.

UH, AND WE'LL GO THROUGH HOW THAT IS STRUCTURED IN SUCH A WAY WE MONITOR THE, THE CASH FLOW.

WE DO WELL STUDIES THE SAME WAY, UH, PRIORITIZED LIST OF CIPS SEWER MASTER PLAN, AUGMENTATION STUDIES, OPTIMIZATION STUDIES, JUST TO MENTION SOME OF THE FEW.

ALL OF THESE PLANNING DOCUMENTS WILL RESULT IN A LIST OF CIP PROJECTS THAT ARE PRIORITIZED WITH AN ENGINEER ESTIMATE.

SO WHETHER WE HIRE A CONSULTANT OR DO IT IN-HOUSE, WE HAVE A ROBUST, UH, DESIGN PLAN, CHECK REVIEW PROCESS AT 30% OF DESIGN, WHICH IS BASICALLY A VERY CONCEPT LEVEL DESIGN.

AND THAT EVOLVES INTO A 50% DESIGN AFTER THOSE COMMENTS ARE INCORPORATED.

AND THEN IT MOVES TO A 90%.

AND, UH, WE WILL HAVE A HUNDRED PERCENT DESIGN.

EACH STEP WILL HAVE A ROBUST REVIEW OF DIFFERENT FOLKS, UH, UH, INCLUDING ROB AND MYSELF, WHO LOOKS AT THESE PLANS IN DETAIL BEFORE THEY GO OUT TO BID.

UH, ONCE YOU KNOW, THE DESIGN IS COMPLETED, UM, WE ADVERTISE THE PROJECT PUBLICLY, UH, UH, IN A, IN A FORMAL BID ENVIRONMENT, AND THEN THE CONTRACT IS AWARDED BY THE BOARD.

UH, ONCE THE CONTRACT IS AWARDED, THERE'S A NOTICE TO PROCEED THAT WE'LL ISSUE TO THE CONTRACTOR, UH, UPON THE EXECUTION OF THE CONTRACT.

AND ONCE WE RECEIVE OUR, UH, PERFORMANCE AND LABOR MATERIAL BOND AND OTHER INSURANCE DOCUMENTS.

AND THEN ONCE AFTER THE PROJECT IS COMPLETED, UH, WE FILE A NOTICE OF COMPLETION, UH, WITH THE COUNTY.

UH, ONE THING THAT THE BOARD DOESN'T SEE HERE AT LONG BEACH UTILITIES, BUT THAT IS COMMON IN OTHER CITIES, IS, YOU KNOW, SOMETIMES, YOU KNOW, THESE NOTICE OF COMP COMPLETIONS GO TO CITY COUNCIL OR SO FORTH, AND, YOU KNOW, YOU ARE AWARE OF IT, THESE PROJECTS AS THEY, THEY'RE COMPLETED.

UH, BUT HERE AT LONG BEACH UTILITIES, WE DON'T DO THAT.

SO SOMETIMES YOU MAY NOT SEE PROJECTS WHEN THEY ARE COMPLETED.

YOU MAY NOT HEAR OF THEM, BUT WE HAVE QUITE A FEW PROJECTS THAT I'LL GO THROUGH IN THE NEXT FEW SLIDES THAT WE HAVE COMPLETED THIS YEAR.

SO THIS IS A SUMMARIZED, I GUESS, VERSION.

I KNOW THERE'S A LOT OF DATA ON THIS SLIDE, UH, BUT IF YOU BEAR WITH ME JUST LOOKING AT THE TOP ROW, YOU KNOW, WE HAVE THE, THE PROJECT NUMBER, THE PROJECT NAME, UH, THE PHASE THAT THAT PROJECT IS IN, WHETHER IT'S DESIGN OR CONSTRUCTION, YOU KNOW, THE WHAT, WHAT OTHER, UH, I GUESS WHAT CLASSIFICATION IT BELONGS TO, WHETHER IT'S A WELL PROJECT, A SU, UH, TREATMENT PLANT PROJECT, WHO THE SPONSOR IS, OR WHO'S ASSIGNED TO THAT PROJECT PROJECT.

AND THEN WE, UM, YOU KNOW, KIND OF HAVE SOME FORM OF A CASHFLOW MODEL OF WHAT WE ANTICIPATE TO SPEND EACH YEAR.

UH, SO ONCE WE GET THE PRIORITIZE PRIORITIZED LIST AS PART OF THE PLANNING DOCUMENT, THOSE PROJECTS ARE INCORPORATED IN THIS LIST, AND THEN WE MAP IT OUT ON HOW MUCH WE ANTICIPATE ON SPENDING EACH YEAR.

THERE IS A DETAILED VERSION OF THIS WHERE WE MONITOR OR WE PROJECT OUT HOW MUCH WE'RE GOING TO SPEND EACH MONTH AND CONT WE CONTINUOUSLY EVERY MONTH LOOK AT HOW MUCH WE PROJECT TO SPEND AND HOW MUCH WE ACTUALLY SPEND.

AND THAT'S KIND OF THE COMPARISON THAT WE DO EVERY TIME WE PROVIDE OUR, UH, UH, FINANCE GROUP WITH OUR, UH, ET TCS ESTIMATED TO COMPLETION, UH, DOLLAR AMOUNT.

SO SOMETIMES IT COULD BE CLOSED, SOMETIMES IT MAY BE OFF, BUT WE HAVE A GOOD UNDERSTANDING OF WHAT PROJECT IS TRACKING FINANCIALLY BEHIND, AND WHAT PROJECT IS

[00:25:01]

THESE TWO PIE CHARTS KIND OF SHOW YOU THE DISTRIBUTION OF, UH, PROJECTS THAT WE HAVE, UH, ACROSS THE, OUR WATER, CIP AND SOURCE, CIP, UH, FOR EXAMPLE, FOR DEVELOPMENT, UH, RELATED PROJECTS.

THEY'RE THE TO 4% OF OUR CIP THESE, THESE ARE REIMBURSABLE PROJECTS, SO THEY DON'T REALLY IMPACT, UH, OUR, OUR BUDGET SIGNIFICANTLY.

WE HAVE ABOUT 2% IN PLANNING DOCUMENTS, YOU KNOW, THE BIGGER ONES ARE.

UH, WHEN IT COMES TO THE WATER SIDE, IT'S MAINLY WELL PROJECTS BECAUSE WE ANTICIPATE ON, YOU KNOW, COMPLETING TWO WELLS, UM, EVERY YEAR AS PART OF OUR MASTER PLAN.

AND THEN, YOU KNOW, THE, THE NEXT ONE THAT IS LARGE, UH, LARGE PERCENTAGE IS OUR, UH, PIPELINE PROJECT.

SO WE HAVE A COUPLE OF PIPELINE PROJECTS THAT OCCUPY A SIGNIFICANT PORTION OF OUR CIP.

ON THE SEWER SIDE, ABOUT 15% OF, UH, RCIP IS OLYMPIC, UH, PROJECT RELATED.

THESE ARE THE S 19 S 28 S 29 PROJECTS THAT WE BROUGHT TO THE BOARD.

UH, ON OUR, ON THE LAST, UH, BOARD MEETING, UH, THERE'S SEWER LIFT STATIONS WHERE LIFT STATION EIGHT, UH, WHICH IS, WHICH IS A SIGNIFICANT, UM, UH, PROJECT.

IT, THE, THE, THE AREA THAT SEWER LIFT STATION, UM, IS RESPONSIBLE FOR IS THAT PCH SECOND STREET AREA.

SO IT WAS A HUGE PROJECT THAT WAS COMPLETED THIS YEAR, AND, UH, IT OCCUPIED QUITE A BIT OF OUR BUDGET.

SO ON THE WATER SIDE, IT'S FAIRLY DISTRIBUTED EVENLY.

WE TOUCH EACH ASPECT OF OUR INFRASTRUCTURE.

UH, ON THE SEWER SIDE, IT'S PREDOMINANTLY RIGHT NOW A SEWER LIFT STATION PROJECT, UH, SPECIFICALLY ONE SEWER STATION, UH, NUMBER EIGHT.

SO HERE ARE SOME OF THE, UM, UH, DELIVERABLES OR ACHIEVEMENTS WHEN IT COMES TO COMPLETION OF DESIGN AND GOING OUT TO BID.

UM, YOU KNOW, THESE ARE THE PROJECTS THAT WERE, UH, WHERE THE DESIGN IS COMPLETED, AND WE WERE ABLE TO GO OUT TO BID THIS FISCAL YEAR, L-A-D-W-D, UH, LA UH, DWP HAYS PROJECT $20 MILLION.

IT WAS QUITE AN EFFORT, UH, COORDINATION BETWEEN L-A-D-W-P, SEAL BEACH, UM, THE DIFFERENT AGENCIES.

IT, IT IMPACTED, UH, MOUS THAT ARE EXECUTED, UH, IN THE UPWARDS OF $70 MILLION WORTH OF MOU.

SO IT WAS QUITE AN UPLIFT FOR OUR STAFF.

AND THE AREA THAT PIPELINE COVERS, IT'S ABOUT THREE MILES OF PIPELINE FROM ATHERTON TO ALL THE WAY TO THE HANES POWER PLANT, UH, WHERE THE DESIGN, THE MOU AND ALL THAT EFFORT TOOK ABOUT A LITTLE OVER TWO YEARS TO, TO COMPLETE, UH, WATER AND MAIN BRIDGE CROSSING.

THIS WILL BE ONE OF OUR LAST, UH, BRIDGE CROSSING PROJECTS THAT WE WILL DO AS JUST A WATER DEPARTMENT.

UH, WE WILL, THE NEXT BRIDGE CROSSING PROJECT WILL HOPEFULLY SOMETHING THAT WE WILL COORDINATE WITH GAS AND, UH, COLLABORATIVELY, UH, PERFORM ON.

UH, BUT THIS IS ALSO A DESIGN PROJECT THAT WAS COMPLETED.

UH, THIS YEAR WE HAVE A VALVE REPLACEMENT PROJECT, SO ANYTHING HIGHER THAN 12 INCHES, THE, THE VALVE WE CONTRACT OUT OUR OPERATIONS DON'T HAVE THE EQUIPMENT, UM, TO PERFORM A REPAIR THAT SIZE.

UM, OR THEY WOULD BE STRETCHING THEMSELVES A LITTLE TOO THIN.

UH, SO, YOU KNOW, UH, PROJECTS LIKE THAT, WE WOULD USUALLY HAVE A CONTRACTOR PERFORM THAT WORK THAT CM IS DONE, UH, IN-HOUSE.

SO IF IT IS A $2.3 MILLION FOR THE PROJECT, THE CM SERVICES IS ROUGHLY ABOUT $200,000.

SO WE WERE ABLE TO, UH, PERFORM THAT CM SERVICES IN-HOUSE AND SAVE OURSELF ROUGHLY 200,000.

UH, WELL ANNEXED 2026 REMOVAL.

THIS IS A DECOMMISSIONING, DECOMMISSIONED WELL, UM, UH, THAT HAS BEEN, THAT NEEDED TO BE ABANDONED IN THE INHOUSE.

UH, CONSTRUCTION MANAGEMENT IS ALSO DONE IN HOUSE AMIRO TANK 11 AND 13, $6 MILLION COMPLETED THE DESIGN THIS YEAR.

SAME THING WITH, UH, COMMISSION 23 A AND EL DORADO.

TWO, UM, UH, YOU KNOW, HIGH PRODUCING WEALTH ABOUT, UH, 2,500 GPM.

UM, DESIGN COMPLETED THIS YEAR AS WELL.

AND SS RRP 11.

THIS, UH, WAS AWARDED BY THE BOARD ABOUT, UH, TWO OR THREE BOARD MEETINGS AGO, 17 LOCATIONS OF, UH, SEWER IMPROVEMENT, UH, SEWER LINING AND POINT REPAIRS.

AND THEN WE HAVE ORANGE AVENUE TRANSMISSION, MAINE, WHICH IS A PIPE BURSTING TECHNOLOGY, UH, ABOUT 2200 LINEAR FEET OF, UH, PIPELINE ON ORANGE AVENUE FROM, UH, WERE LOW, UH, TO BIXBY, THAT THAT IS GOING TO BE REPLACED, UM, UH, PRETTY SOON.

SO THE DESIGN OF THESE PROJECTS WERE COMPLETED, AND THE BOARD AWARDED THESE PROJECTS OVER THE LAST YEAR.

THESE ARE THE ONES THAT WE HIGHLIGHTED, BUT THERE ARE OTHER SMALLER PROJECTS THAT WE ALSO HAVE AWARDED OVER THE PAST YEAR.

UH, JUST

[00:30:01]

UH, YOU KNOW, AS A RESULT OF THAT, UM, UH, PIPE FAILURE, UH, BACK IN FEBRUARY OF 2020, UH, FOR, I BELIEVE, YOU KNOW, WE, WE ARE NOW, UH, ABANDONING THAT, THAT PIPELINE, UH, ALLEY WATER MAIN, UH, CONVERSION ON PA PACIFIC AVENUE.

THESE ARE, YOU KNOW, UH, ALLEY WATER MAIN IMPROVEMENTS WHERE WE RELOCATE THE MAIN FROM ALLEYS TO, UH, MAJOR STREETS OR ROADWAYS FOR ACCESSIBILITY REASONS THAT THAT WAS ALSO RECENTLY COMPLETED.

THE DESIGN OF THAT WAS RECENTLY COMPLETED AND, UH, WILL BE IN CONSTRUCTION PRETTY SOON.

THERE ARE PLANNING DOCUMENTS THAT WE ARE CURRENTLY EMBARKING ON THAT ARE CLOSE TO COMPLETION, SUCH AS OUR WATER DISTRIBUTION MASTER PLAN, WHICH DICTATES THE NEXT FIVE YEAR PIPELINE IMPROVEMENTS THAT WE DO.

THE UNIQUE THING ABOUT, UH, THIS WATER DISTRIBUTION MASTER PLAN IS WE ARE DOING SOME AI, UH, RELATED ASSESSMENT, AN ACOUSTIC PLUS AI, UH, PIPELINE ASSESSMENT, UH, THAT WE'RE INCORPORATING INTO THIS WATER DISTRIBUTION MASTER PLANT TO IDENTIFY SOME ANOMALY ANOMALIES WITHIN OUR PIPE, UH, SYSTEM, RECYCLED WATER MASTER PLAN.

UH, AMY WILL PROVIDE A PRESENTATION AFTER THIS ABOUT THE STATUS OF THE RECYCLED WATER MASTER PLAN.

WE'RE ALMOST COMPLETE, WE'RE ALMOST DONE WITH THAT PROJECT.

YOU KNOW, OUR GROUNDWATER AUGMENTATION STUDY THAT WE'RE CURRENTLY COORDINATING WITH, UH, WRD AND MWD TO DEVELOP, UH, A WATER AUGMENTATION STUDY WHERE WE'RE PROPOSING SOME INJECTION AND EXTRACTION WELLS WHERE THE LOCATION OF THESE WELLS ARE ALREADY IDENTIFIED.

UM, AND WE'RE ABOUT TO FINALIZE THAT DOCUMENT AS WELL.

AND, YOU KNOW, UM, OUR GRAND PLAN OF THE GROUNDWATER RESILIENCE PROGRAM, UH, YOU KNOW, THE, THE CONCEPT OF BUILDING A SECOND TREATMENT PLANT ON THE WEST SIDE OF TOWN AND CREATING, UM, A UNIFICATION LINE AND SO FORTH, UH, FOR WATER RESILIENCY, UH, IS ALSO ANOTHER PLANT THAT WE'RE CURRENTLY WORKING ON.

SO, APPROXIMATELY ABOUT $60 MILLION OF CONSTRUCTION CONTRACTS AWARDED BY THE BOARD OVER THE PAST YEAR.

UM, AND, YOU KNOW, ALL OF THESE PROJECTS WERE EITHER, UH, YOU KNOW, MANAGED OR DESIGNED IN HOUSE.

SO THE, THE STAFF DID A, A, A REALLY GOOD JOB OF MOVING THESE PROJECTS FOR AWARD TO GET THEM TO THE STAGE THAT THEY, UH, ARE CURRENTLY AT, UM, CONSTRUCTION.

AS I SAID, YOU MAY NOT SEE SOME OF THE COMPLETED CONSTRUCTIONS, BUT I, I JUST WANTED TO HIGHLIGHT JUST A FEW, UH, FOR, YOU KNOW, YOUR AWARENESS.

YOU KNOW, WE RECENTLY COMPLETED A LARGE FILE REPLACEMENT PROJECT, UH, ON VARIOUS LOCATIONS, I THINK ABOUT SIX LOCATIONS THROUGHOUT THE CITY, UH, ABOUT TWO $4.5 MILLION WORTH OF CONTRACT.

ALAMITOS TANK 22.

UM, THAT WAS ONE OF OUR FIRST, UM, RECYCLED WATER TANKS, UH, REHABILITATION THAT WAS COMPLETED THIS YEAR.

UM, TWO NEW WELLS, UH, NORTH LONG BEACH, 13 AND 14.

UH, THOSE WERE ALSO COMPLETED THIS YEAR FOR $10.5 MILLION.

THESE ARE SIGNIFICANT PRODUCING, YOU KNOW, UH, WELLS, ABOUT 2,500 GALLONS PER MINUTE.

UM, THE TWO OF THEM ROUGHLY PRODUCE, I GUESS, ABOUT 5,000 GALLONS PER MINUTE.

THAT KIND OF TRANSLATES TO ALMOST 8,000 ACRE FEET, YOU KNOW, A YEAR.

UM, TO PUT IT INTO PERSPECTIVE, OUR LOCATION IS ABOUT 32,000, UM, ACRE FEET PER YEAR.

SO HAVING THE ABILITY TO PRODUCE ABOUT 8,000 OUT OF, UH, 32,000, UH, THAT THESE WELLS PLAY A SIGNIFICANT ROLE, UH, IN THE AMOUNT OF WATER THAT WE EXTRACT FROM, UH, CENTRAL BASIN, WE HAVE COMMISSION 23 A AND TO THE, THE DRILLING PHASE OF THOSE TWO PROJECTS WAS WERE ALSO COMPLETED THIS YEAR.

UM, YOU MIGHT THINK THAT DOLLAR AMOUNT MAY BE A LITTLE BIT HIGH FOR, UH, FOR, UH, JUST DRILLING.

UM, BUT THESE ARE ABOUT 1200, UH, UH, FEET BELOW GROUND, UH, WHERE THE, WHERE WE INSTALLED THESE CASSONS AND PUT A BUNCH OF GRAVEL SURROUNDING, UH, THE CASSONS AND SO FORTH.

SO IT'S, UH, IT'S QUITE AN EFFORT AND QUITE THE MOST EXPENSIVE PART OF, YOU KNOW, WELL, CONSTRUCTION, UH, ALAMITOS NINE A AND 14, UH, WASTED DRAIN PIPELINE WAS COMPLETED THIS YEAR.

THE REHAB OF COMMISSIONED 15 AND 18, UM, COMPLETED THIS YEAR AS WELL.

WHEN WE SAY REHAB, WE BASICALLY TAKE THE PUMP OUT, CLEAN THE, THE, UM, UH, CASE ONS AND THE LOUVRES WITH CHEMICALS AND PUT IT BACK TOGETHER, INSTALL NEW EQUIPMENT, UH, VFDS, ET CETERA, TO MAKE THE PUMP MORE EFFICIENT.

UH, AND THEN WE ALSO COMPLETED OTHER SMALLER PROJECTS LIKE THE, UH, THE ANNEX 26, UM, AS I MENTIONED, SO WHERE, UH, S 28 WAS ALSO COMPLETED THIS YEAR.

UM,

[00:35:01]

SO THESE ARE SOME OF THE PROJECTS THAT SOMEWHAT OF A HIGHLIGHT OF THE PROJECTS THAT WERE COMPLETED OVER THE PAST YEAR.

SO NOW WE'LL GET INTO, UM, KEY CHALLENGES OR WHAT KEEPS ME AND ROB, UH, UP AT NIGHT.

UM, SOME OF THE PROJECTS IS TO GO OVER ALAMITOS NINE A AND 14.

WE HAD SOME, YOU KNOW, CONSTRUCTION PERFORMANCE, UH, RELATED CHALLENGES WITH THE CONTRACTOR.

UM, THIS HAPPENED IN CONSTRUCTION QUITE OFTEN, UH, BUT YOU KNOW, HOW YOU NAVIGATE THROUGH THAT.

AND WHAT KIND OF TOOLS WITHIN THE CONTRACT DO YOU GET TO, YOU KNOW, UTILIZE WHEN YOU HAVE LACK OF PERFORMANCE.

UM, IN THIS CASE, WE HAD TO ISSUE THE CONTRACTOR A NOTICE THE CURE, FOLLOWED BY A NOTICE OF INTENT TO TERMINATE.

UH, WHAT THAT DOES IS IT ENGAGES THE ASSURITY OR THE INSURANCE COMPANY, OR THE COMPANY, THE, IN THE, THE INSURANCE COMPANY RESPONSIBLE FOR THE PERFORMANCE BOND.

UM, IT'S A, IT'S A TOOL THAT WE OFTEN DON'T, UH, LIKE TO USE, BECAUSE IF WE TERMINATE WITH, IF WE END UP TERMINATING THE CONTRACT, THEN WE WOULD HAVE TO START EVERYTHING FROM SCRATCH.

SO, UH, A GREAT CARE HAS TO BE, UM, TAKEN INTO CONSIDERATION BEFORE WE TAKE THE STEP FORWARD, AND WE COORDINATE WITH OUR, UM, UH, CITY ATTORNEY'S OFFICE OR, UH, LEGAL COUNSEL BEFORE WE TAKE THE STEP.

THIS IS THE FIRST TIME WE TOOK THE STEP, AND, UH, ONCE WE ISSUED THE NOTICE TO CURE, WE WERE ABLE TO GET ASSURETY TO COME TO THE SAME TABLE WITH US.

UM, AND, YOU KNOW, AS, AS PART OF THE NOTICE TO CURE, THE CONTRACTOR HAS PERFORMED, UH, QUITE WELL, AND THINGS STARTED MOVING, UM, YOU KNOW, UH, REASONABLY WELL ONCE WE ENGAGED THEIR ASURITY.

UH, THE REASON WHY CONTRACTORS USUALLY REACT TO THIS IS BECAUSE, UH, ONCE THIS IS ISSUED AND THEIR, THEIR ASSURITY IS, IS, UH, ON THE SAME PAGE WITH THE CITY, THAT JUST MEANS THAT IF THEY'RE TERMINATED, THEIR ABILITY TO BOND FOR OTHER PROJECTS WILL BE LIMITED.

UM, AND THAT PUTS THEM AT A, A FINANCIAL BIND, BECAUSE THEY WON'T BE ABLE TO BID ON OTHER LARGE SIZE PROJECTS.

IT'S LIKE, YOU KNOW, UM, YOU USING YOUR HOME INSURANCE AND, AND YOUR INSURANCE WILL GO UP, OR YOU WILL HAVE A HARD TIME, YOU KNOW, GETTING, UH, A LOW PREMIUM FOR YOUR INSURANCE.

SO, UH, CONTRACTORS USUALLY REACT TO THIS.

UM, AND SO FAR THE CONTRACTOR HAS BEEN RESPONSIVE, UM, AND THINGS HAVE BEEN MOVING OR PROGRESSING VERY WELL.

UH, WATER MAIN PROJECT, OR POF FOUR IS ANOTHER PROJECT THAT WE EXPERIENCED SOME DELAY ON.

UM, UH, IT, THE LOW BIDDER FOR THIS PROJECT, UM, HAD SOME DISCREPANCIES WITHIN THEIR BID.

UM, AND THEY WERE NOT AWARDED THE PROJECT, SO THEY REQUESTED AN ADMINISTRATIVE HEARING, SO WE HAD TO MEET WITH THEM AND EXPLAIN WHY THEY WERE NOT, UM, THE LOWEST BIDDER THAT TOOK SOME TIME AND AIRPORT ACCESS OF, YOU KNOW, THERE'S, THERE WAS AN ACCESS AND SECURITY REQUIREMENTS THAT WERE REQUIRED, UM, BY THE AIRPORT, UH, FOR EVERYONE WHO WAS ON SITE, UH, AND THE ADMINISTRATION OF THAT.

AND, UH, AND THE CHECKS AND BALANCES AND SO FORTH THAT HAD TO TAKE PLACE AS A RESULT OF, OF THAT EFFORT IMPACTED OUR TIME.

AND IN THE, AND DURING THE SAME PERIOD, THERE WERE ALSO SOME NEW PLA OR PROJECT LABOR AGREEMENT CLAUSES THAT WERE INTRODUCED, UM, THAT, YOU KNOW, KIND OF IMPACTED THE, THE START OF THE PROJECT SIGNIFICANTLY.

SO THAT, THAT IS SOMETHING THAT, UM, YOU KNOW, KIND OF ALSO IMPACTED OUR, OUR CASH FLOW OR OUR EXPENDITURE THAT WE PROJECTED FOR THIS FISCAL YEAR.

UM, IN THE FUTURE.

THE LESSON LEARNED IS WHENEVER WE, WE WORK WITH THE AIRPORT, YOU KNOW, HAVE THESE CONVERSATIONS WHILE AHEAD IN ADVANCE.

THE ONLY CHALLENGE IS WE DON'T KNOW THE CONTRACTOR THAT'S GOING TO BE WORKING ON SITE.

SO, YOU KNOW, UM, PROCESSING EACH WORKER'S, UH, YOU KNOW, CLEARANCES AND SO FORTH IS STILL GOING TO CONTINUE TO BE A PROBLEM.

UM, THE HANES PROJECT WILL GO A LITTLE BIT INTO DETAIL ON THE IMPACT OF THE TIME IMPACT THAT WE HAVE ON, ON HANES, UH, ON FUTURE SLIDES.

UM, BUT, UH, BASICALLY THIS REQUIRES ONGOING COORDINATION WITH L-A-D-W-P AND SEAL BEACH.

UM, AND EARLIER ON, AS PART OF THE NOTIFICATION PROCESS AND COMMUNITY ENGAGEMENT AND SO FORTH, THERE WERE SOME, UH, UH, SCHEDULE IMPACTS THAT, UH, WE ENDURED.

AND THAT ALSO IMPACTED, UH, AGAIN, THE LESSON LEARNED IS TO START THE COMMUNICATION EARLY, UH, CROSS CONNECTION PROGRAM.

WE ORIGINALLY BUDGETED ABOUT HALF A MILLION DOLLARS WORTH OF, UM, UH, EXPENDITURES FOR OUR CROSS CONNECTION PROGRAM BECAUSE OF THE 2024, UM, UH, CROSS CONNECTION, UH, I BELIEVE HANDBOOK, UH, THAT WAS, UM, UH, ISSUED BY DEPARTMENT

[00:40:01]

SO, ORIGINALLY WE ANTICIPATED THAT THIS WILL RESULT, UM, IN SOME KIND OF IMPROVEMENT, UH, NEEDED TO CHANGE SINGLE CHECK VALVE TO DOUBLE CHECK VALVES, BUT THAT ENDED UP NOT BEING THE CASE, AT LEAST TEMPORARILY.

UM, SO THIS IS AN EXPENDITURE THAT WE ANTICIPATED THAT WE WERE GOING TO SPEND.

HOWEVER, UH, BECAUSE OF THE REGULATIONS CHANGING NOW, UH, THE CHANCES OF US MOVING FORWARD WITH THIS PROJECT, AT LEAST IN THIS FISCAL YEAR, IS VERY LIMITED.

SO THIS IS ANOTHER, YOU KNOW, PROJECTION THAT WE THOUGHT WE WERE GOING TO SPEND.

HOWEVER, WE WON'T BE MOVING FORWARD BECAUSE OF CHANGE IN REGULATION.

UM, AMIDO, UM, TANK 11 AND 13, AGAIN, YOU KNOW, BID PRO PROTESTS AND GOING THROUGH THE BACK AND FORTH WITH SOME OF THESE CONTRACTORS, THEY, IT JUST TAKES A LITTLE BIT OF A TIME AND WE WON'T BE ABLE TO ADVERTISE THE PROJECT IN A TIMELY MANNER, ALSO IMPACTING OUR EXPENDITURE PROJECTIONS.

SO THESE ARE SOME OF THE, ON THE TECHNICAL SIDE OF THINGS, THESE ARE SOME OF THE, UH, CHALLENGES THAT WE HAVE, UH, WITH, UH, YOU KNOW, MEETING THE EXPENDITURES THAT WE ANTICIPATED FOR THAT FISCAL YEAR.

ON THE OTHER SIDE, THERE ARE ALSO SOME, UM, YOU KNOW, CHANGES THAT WE IMPLEMENTED BASED ON THE PERFORMANCE THAT YOU OBSERVED IN FISCAL YEAR 2025.

WE WERE A LITTLE BIT BEHIND ON OUR, UH, PROJECTED EXPENDITURES.

SO THERE ARE SOME CHANGES THAT WE MADE WITHIN OUR CAPITAL IMPROVEMENT PROGRAM.

UH, SO, YOU KNOW, HISTORICALLY WE'VE HAD, UH, OPERATIONAL EQUIPMENT SUCH AS LAB EQUIPMENTS, UH, CHEMICAL, UH, FEED PUMPS.

THESE ARE SMALL PUMPS AND, AND SO FORTH THAT WE TRACKED AS PART OF OUR CIP UH, MOVING FORWARD.

YOU KNOW, WE ARE GOING TO BE, THOSE ITEMS ARE GOING TO BE TRACKED AS PART OF THE OPERATIONS BUDGET.

UH, SO JUST TO GIVE YOU A HEADS UP, BECAUSE OF THIS CHANGE, YOU'LL ALSO NOTICE, YOU KNOW, OUR CIP, UH, BUDGET NOT, UH, MEETING THE ESTIMATED EXPENDITURE FOR THIS FISCAL YEAR.

THERE'S ALSO ONE TIME, UH, LARGE PURCHASES SUCH AS IT EQUIPMENT SWITCHES, UH, SOFTWARE UPGRADES THAT WERE HISTORICALLY BEING TRACKED AS PART OF THE CIP, UH, BUDGET.

BUT WE ALSO MOVED THOSE, UH, OUT OF THE CIP BUDGET, AND THEY WILL BE NOW TRACKED AS PART OF, UH, THE OPERATION EXPENDITURES.

SO THIS WILL IMPACT OPERATION EXPENDITURES A LITTLE BIT, HOWEVER, YOU WON'T SEE THAT AS PART OF THE ACTUALS.

UH, FOR, FOR CIP INTERNAL COORDINATION, UH, NOW WE HAVE A MONTHLY, UH, COORDINATION MEETING WITH ALL OUR, UM, UH, DEPARTMENTS WITHIN UTILITIES.

AND, YOU KNOW, WE ALSO, UH, UH, WE'LL START, UM, USING A CENTRALIZED PLATFORM, UH, TO COMMUNICATE OUR CIPS AND TRACK OUR CIPS.

YOU KNOW, NOW, YOU KNOW, WITH, WITH AGENT AI AND SO FORTH, THERE ARE SO MANY DIFFERENT TOOLS, UM, THAT WILL EXPEDITE, UH, PREPARATION OF SPECIFICATIONS, YOU KNOW, AND COMMUNICATION AND IMPLEMENTATION AND DELIVERABLES, UH, SIGNIFICANTLY THAN HOW IT WAS TRA TRADITIONALLY DONE IN THE PAST.

SO WE ARE, WE'RE TAKING STEPS TOWARDS ADOPTING THOSE STRATEGIES AND INTEGRATING THEM INTO OUR WORKFLOW.

UM, ADDITIONAL CHANGES IMPLEMENTED ARE INTERDEPARTMENTAL, UH, CIP COORDINATION, AS I SAID, YOU KNOW, UM, RADIO SYSTEM EXAMPLE IS THE ONE THAT I GAVE WHERE, YOU KNOW, WE WERE ORIGINALLY COORDINATING WITH THE CITY.

THE CITY HAD SOME BUDGET ISSUES AND SO FORTH.

AND, YOU KNOW, UH, EARLIER COORDINATION WITH OUR OTHER STAKEHOLDERS WILL COME IN HANDY.

UH, BUT STILL THERE WILL BE SOME IMPACT.

UH, WHEN IT COMES TO OUR CIP, UH, CITYWIDE COORDINATION, WE CURRENTLY HAVE AN ONGOING QUA, UH, QUARTERLY MEETING WITH, UH, PUBLIC WORKS, UM, PARKS AND RECREATIONS, MARINE E ENERGY RESOURCES, ET CETERA, SO THAT WE ARE ALL ON THE SAME PAGE, UH, NOT ONLY TO UNDERSTAND THE IMPACT THAT WE HAVE IN OUR COMMUNITY, BUT TO ALSO UNDERSTAND THE IMPACT THAT WE HAVE ON EACH OTHER'S SCHEDULE.

AND THEN THE LAST, BUT MOST IMPORTANT PART IS, UH, STAFF DEVELOPMENT AND ACCOUNTABILITY.

SO WE TURNED AROUND AND ALSO LOOKED OURSELVES.

AND, YOU KNOW, NOW WE ARE HAVING CERTAIN STANDARDS FOR EXPECTATION ACCOUNTABILITY.

UH, WE ARE USING EXISTING INCENTIVE PROGRAMS TO INCENTIVIZE OUR STAFF, UH, FOR PERFORMANCE REASONS.

WE ARE INTEGRATING A VERY STRONG INTERNSHIP PROGRAM, UH, INTO OUR STRUCTURE SO THAT WE CAN IMPROVE OUR, OUR PRODUCTION AS WELL.

UH, SO WE, WE TOOK A STEP TO LOOK AT OURSELVES IN THE MIRROR AND, AND FIGURE OUT WASTE FOR IMPROVEMENTS AS WELL.

UH, MEASURE IMPACTS, UH, FOR FISCAL YEAR, UH, 2027, UM, LAD WPS HAYNES PROJECT IS FRONT AND CENTER.

UH, UNFORTUNATELY DUE TO, UM, A, A FRANCHISE

[00:45:01]

AND THE TIME THAT WE ANTICIPATED, UH, THE PORTION OF THE PROJECT THAT WE WILL SEE IN THE, IN THE UPCOMING SLIDE, UH, WOULD BE THE PORTION WHERE, YOU KNOW, PIPELINE INSTALLATION WAS SUPPOSED TO TAKE PLACE UNDERNEATH THE 20, UH, TWO FREEWAY.

AND ON COLLEGE DRIVE, UH, BRIDGE, UH, THAT PORTION WOULD BE POSTPONED, UH, UNTIL THE LA COUNTY PERFORMS, UH, REPAIR ON, UH, ON THE COLLEGE DRIVE BRIDGE.

UH, THAT WILL IMPACT NEXT YEAR'S, UM, ACTUAL BUDGETS THAT WE, UH, UH, PROJECTED OUT, UH, ON THE WATER SIDE, IT WILL IMPACT THE BUDGET FROM BY, FROM EIGHT TO 10 MILLION.

AND ON THE SEWER SIDE, IT WILL IMPACT OUR PROJECTED EXPENDITURE BY 3 MILLION.

UH, BECAUSE THIS IS A FULLY REIMBURSABLE PROJECT THAT DOESN'T REALLY IMPACT, YOU KNOW, RATE OR ANYTHING LIKE THAT.

UM, BUT IT WOULD, IT WOULD JUST, UM, CLERICALLY SPEAKING, IT WILL JUST IMPACT WHAT WE ORIGINALLY ANTICIPATED THAT WE WERE GOING TO SPEND IN FISCAL YEAR 2027.

IT ALSO IMPACTED, UM, WHAT WE ANTICIPATED ON SPENDING FOR FISCAL YEAR 2026 BY ROUGHLY ABOUT $3 MILLION OR SO.

UH, ON THE SEWER SIDE, UH, THERE IS ONE PROJECT, THE WELO PIPELINE IMPROVEMENT PROJECT.

THIS IS AN UPSIZE ANIZE OF A SEWER PIPELINE ON WORD LOAD FROM CERRITOS TO CHERRY AND ON CHERRY FROM WORD LOAD TO UP TO, I BELIEVE, 32ND STREET.

UM, THAT PROJECT IS A SIGNIFICANTLY LARGE PROJECT THAT WE WERE ANTICIPATING ON STARTING IN LATE 2028.

UH, HOWEVER, BECAUSE OF NEW, UM, UH, HOUSING DEVELOPMENTS THAT WILL TAKE PLACE, I THINK THERE ARE ABOUT THREE ON, WERE LOW AND LEMON.

UM, WE ARE GOING TO MOVE THAT PROJECT A LITTLE BIT CLOSER NOW, UH, BUT ALSO WE ARE TAKING INTO CONSIDERATION THE IMPACT IN OLYMPICS AND A FEW OTHER THINGS.