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I'd like

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to call the meeting of the Carpenterry Valley Water District to order. Can we head a pleas of release, please?

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Pleas of allegiance to the flag in the United States of America, and to the Republic for its assands, one nation, and the God, indivisible liberty of justice for all.

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No, roll call, please Lisa.

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Director O'Connor?

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00:01:11,120 --> 00:01:11,840
Director Holcomb?

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00:01:12,700 --> 00:01:13,220
Director Volts?

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00:01:13,920 --> 00:01:14,220
Director Robert?

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Director Van Wiggen.

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Yes.

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Five present.

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Number three, public forum.

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Any person may address the board of directors on any matter.

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Business jurisdiction, which is not on the agenda.

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Done.

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There we go, too.

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You got him on the speaker?

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Do you want us to get the GZ?

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No problem.

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Cassinda, agenda number four.

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I'll read to all items and if anybody's got any questions or comments and then we'll approve it all at once.

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So for a minutes of the regular board meeting held on January 8th, 2025.

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Probably abstaining.

24
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Thank you.

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And the Spursman Report for November 11, 2024, December 10,

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2025.

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And semi-annual of Enderman Payment Report.

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Then for the Directed Quarterly Composation Report, second quarter.

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And then for E, consider authorizing scope and budget change for Hemner and Jewel,

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a real property consultant for CAP in the amount of the 20,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000.

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Okay, if there's no questions or comments, then I like emotion please.

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One of our, um, I believe we do have a public comment

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online.

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Oh, there was no, there was no comment on the, okay.

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So I think I know the way I thought you were, I thought that would be this one too.

36
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Yeah, and then do we want to take the minutes separately since there's going to be an abstention?

37
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Okay, got it. Okay, so we got item number four A.

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We need a motion please.

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Second, motion is second, any more discussion?

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Roll call, please.

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Director Conner.

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Director Holcomb.

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Absi.

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Director Bolts.

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Aye.

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Director Robert.

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Director Van Wingerdin.

48
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Yes.

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Motion passes four one.

50
00:03:29,430 --> 00:03:31,170
Okay, then we got four B.

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00:03:31,410 --> 00:03:36,850
Disbursement report from November 11, 2024 to December 10, 2025.

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And at the point in the other point of order, there's a correction, it should be December 10, 2024.

53
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Thank you.

54
00:03:44,450 --> 00:03:46,610
I should have had a couple of things.

55
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Can I move through a top BCD and E it once now that we've subtracted it?

56
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Yes.

57
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So moved.

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Second.

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You're talking about B right now, right?

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I moved to a top B through E.

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Got it.

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So we're going to motion this second.

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Any more discussion?

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Roll call please.

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Director O'Connor. Director Holcomb. Yes. Director Bold.

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Director Roberts.

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Hi.

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Director Ranweer Dyn.

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Yes.

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Motion passes 50.

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Then, uh, unfinished business.

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Then we adjourned the regular meeting of the Crop to be a groundwater

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sustainability agency.

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Called the meeting to order.

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Uh, item number two public forum.

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Any person may address the border directors on any matter.

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00:04:35,150 --> 00:04:38,190
Business is jurisdiction, which is not on the agenda.

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Yes, sir.

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Yes, sir.

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Go ahead.

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00:04:47,280 --> 00:04:48,420
Hello, everyone.

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Hi.

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I wanted to just come as a follow up from the last meeting when presented a letter from the

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volunteer members of the advisory committee.

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I wanted to see if you had any questions about that and also looking forward to the

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discussion about that we're going to have with the committee as a follow-on from the last meeting.

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So, I just wanted to mention that, and one other follow up is that it sent in a piece to the coastal view, following up on that letter, just describing some of the nature-based groundwater recharge opportunities here in the basin.

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And one should know about that, and not sure when it'll run, but you'll be seeing it at some point.

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I'm sure.

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00:05:39,500 --> 00:05:58,240
I'll just say we are working on the outreach plan for the meter program, and so that's kind of as my rock recollection was that there was sort of a two track discussion.

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At the last GSA meeting, one was what Alan is talking about, and that is to reassemble the

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just back to work on grants under Prop4 and any other grants that might be available for projects that the GSA would do.

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The other was, I think, maybe it was Scott mentioning that the meter piece that we were working on, the policy that

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on Scott mentioned, or maybe the GSPAC should be consulted on that, and so we are working

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on that piece. We haven't gotten to the piece that Alan is talking about, so we'll bring

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back in the future, both of those.

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All right. Thank you.

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Okay.

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I'll just, I guess, add a comment. I think we're super fortunate to have these guys willing

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to step in and help out in any way they can and what that might look like is probably something

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you guys have to figure out if there's, you know, some value to it, I think there could be.

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It's great to have a group that knows and understands what the GSA is and is willing to,

103
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you know, they could certainly be advocates for it or, you know, be great resources to get in touch

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with those in the community, you know, in their kind of neighborhood. So I'm sorry, I appreciate

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you guys being willing to step up and, you know, I'm sure we'll make something work out, I hope.

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I'm sure we will. I'll add that, I've said many, many times during, I guess it was last year,

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last year and a half. This is one of those talented group people. I think we've ever had ever

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put to work, and it was absolute honor. If it's resurrected, I'm sure it would be,

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I think, there's some good things that we can do. I do want to see it in specifics. I do think

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that the more specific the task and the mission, the better. I'm not open-ended and Alan with regard to

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your piece. I remember you coming in here several months ago saying, hey, we've got, you know,

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I can do this, we have resources, we can get off into kind of see where we can do with respect to

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in the weeks and that kind of thing so I haven't seen feedback on that yet I'm not sure if

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that's something that could be rolled into the committee but rather kind of what's the status

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of that as we go forward and then depending on that status is there's some kind of criteria

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that could be folded and I don't know. I support the whole team that was here before the

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fantastic group echo everything that Casey is saying but I think the CRISPR, the assignments,

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the better.

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Okay then Bob, you're going to read Will Carthons letter into the record.

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This is an item further down, I believe.

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Oh, this is actually an item on the

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CVWD. So it's on the, on the, the waterboard, not, not yet. Okay, got it. Okay. I'm not sure why it's

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okay. Yeah, it's a cap. It's a cap related. Yeah, got it. Okay.

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Thank you.

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All right.

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Shoot it.

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May I make one point of clarification?

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Scott Bandercar.

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I picked up this handout which is a couple new water district on the front and then right

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over on the back is the GSA.

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Is this a combination or a combined report or is it all GSA?

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This is the slide deck, so this slides up here.

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Thank you for reminding me not to have it loaded a month.

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This is a slide deck that is for tonight's so we start with the board meeting the CVW and then we open the GSA meeting so it is a combination of the two meetings.

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It is yes.

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Thank you.

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But I need to load that right now.

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Okay, then we have item number three and again on three A.

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Probably you want to abstain in that

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you would ever. Okay, sorry. Oh, that's right. Yeah, it was previous

141
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I need to abstain of item number A. Yeah, okay. Let's take item by it's a by itself then, please

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If you can have a motion

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Second motion is second anybody discussion

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Roll call please

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Dr. O'Connor.

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I'm staying.

147
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Dr. Holcomb.

148
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Dr. Bolch.

149
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Dr. Robert.

150
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Hi.

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I'm Dr. Van Mingerdin.

152
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Yes.

153
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I should pass this for one.

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00:10:29,040 --> 00:10:36,320
Okay, then we got BC and D on Item Number B. Disbursement Report for November 11, 2024, and

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it's going to read the minute, December 10, 2024, and then item C, any question in there.

156
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Then item number C, Cema, and you'll vendor payment reports, any questions, then item

157
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Number 3D, Director Quartley Composatial Reports, Second Quarter.

158
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Here's no questions, if we can have a motion for 3B, C and D, please.

159
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Some of it.

160
00:11:00,380 --> 00:11:01,280
I'll sign up.

161
00:11:01,480 --> 00:11:03,620
We have a motion in a second and a more discussion.

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There's a roll call, please.

163
00:11:05,600 --> 00:11:06,260
Director O'Connor.

164
00:11:07,320 --> 00:11:08,080
Director Holcomb?

165
00:11:09,180 --> 00:11:09,640
Director Bulge?

166
00:11:09,700 --> 00:11:09,980
Aye.

167
00:11:10,640 --> 00:11:10,980
Director Roberts?

168
00:11:11,800 --> 00:11:12,480
Director Ben Wuyren.

169
00:11:12,600 --> 00:11:12,940
Yes.

170
00:11:13,360 --> 00:11:14,700
Motion passes 5-0.

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Okay, we got item number 4.

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infinite business, none, item number five new business, consider five A, consider board

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to reorganization for 2025. Bob, I'm going to be by transfer there to chair to Bob on

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item number A1.

175
00:11:35,360 --> 00:11:44,160
Thank you, so I will go through, actually I will bring up the election of the chairperson,

176
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I'm currently case man-waring it in.

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I'm looking for a motion to reelect case for the chair of the GSA.

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Some moved.

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Have a motion in a second.

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Have a roll call.

181
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Director O'Connor.

182
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Director Holcomb.

183
00:12:02,000 --> 00:12:02,020
Yes.

184
00:12:02,740 --> 00:12:03,100
Director Baloch.

185
00:12:03,140 --> 00:12:03,360
Hi.

186
00:12:03,760 --> 00:12:04,560
Director Roberts.

187
00:12:05,260 --> 00:12:05,880
Director Van Wagan.

188
00:12:06,160 --> 00:12:06,500
Yes.

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Motion passes 50.

190
00:12:08,500 --> 00:12:08,700
Okay.

191
00:12:08,700 --> 00:12:11,900
I'll see the seat back to Director Van Waring it in.

192
00:12:12,000 --> 00:12:12,180
Okay.

193
00:12:12,180 --> 00:12:21,380
Thank you, Bob. Then we get item number a two election of vice chair person and I would like to nominate Casey.

194
00:12:23,120 --> 00:12:23,760
Second.

195
00:12:25,460 --> 00:12:29,120
We're in a motion in a second. Any more discussion? Roll call, please.

196
00:12:30,300 --> 00:12:33,800
Director O'Connor. Hi. Director O'Holkum. Yes. Director Bulge.

197
00:12:34,440 --> 00:12:38,600
Director Roberts. Director Van Ringen. Yes. Motion passes five zero.

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00:12:38,600 --> 00:12:43,180
Then we've got an item number A3, you can see the staff appointments,

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3A, Executive Director, Curly, Bob McDonnells, 3B, Treasure, Curly, Norma,

200
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Rosales, Sea, Board Secretary, Curly, Lisa Silva, Alternate Board Secretary,

201
00:12:58,100 --> 00:13:02,840
Curly, Bob McDonnells, so you begin to have a motion on that, please?

202
00:13:03,300 --> 00:13:03,660
Salute.

203
00:13:04,960 --> 00:13:09,140
We're going to motion the second any more discussion. The roll call please.

204
00:13:09,140 --> 00:13:12,960
Director O'Connor. Director Holcomb. Yes. Director Paul.

205
00:13:13,440 --> 00:13:15,180
Director Roberts. Aye.

206
00:13:15,700 --> 00:13:18,140
Director Van Wingerton. Yes. Motion passes 50.

207
00:13:20,180 --> 00:13:26,000
Then what I'd like to do is take number 4, 5, 6, 7 and 8. I'll read them.

208
00:13:26,360 --> 00:13:32,180
Any comments or discussion? Otherwise, I'd like to approve this together.

209
00:13:37,750 --> 00:13:45,590
So, number four, attorneys, general counsel, currently carrying parts of Myers-Bitter's

210
00:13:45,590 --> 00:13:51,590
Gibson Jones-Findhold LLP, all that June of Joy, free of nasa.

211
00:13:52,210 --> 00:13:59,030
Then we got B4B, special counsel, groundwater, and sigma, currently Jeremy and young

212
00:13:59,030 --> 00:14:06,790
of Rutan and Tucker L.P. Any questions? Then move on to item number five. Consider

213
00:14:06,790 --> 00:14:12,310
location time and day of the regular board meetings. Currently carpity city all 5-7-7-7-5.

214
00:14:12,490 --> 00:14:19,270
Carpentry Avenue. Carpentry are 5-35 p.m. on any given Wednesday. Coincidental is a

215
00:14:19,270 --> 00:14:29,010
Carpentry Valley Water Board. What a district board meeting. Any questions in 5? Then we

216
00:14:29,010 --> 00:14:37,270
called currently section 54946 of the government code and questions, then we got 7, consider

217
00:14:37,270 --> 00:14:42,770
establishing a Robert Roosevelt order for all proceedings that we're using currently in

218
00:14:42,770 --> 00:14:48,750
the questions, then we got the number 8, consider establishment of board oversight of financial

219
00:14:48,750 --> 00:14:53,610
transactions, currently all directors with a requirement that all bills, statements,

220
00:14:53,610 --> 00:14:59,830
Invoices and claims, exceeding $3,000 are reviewed and approved by one member of the committee.

221
00:15:00,110 --> 00:15:13,270
On a rotating basis that each member be provided by the list of the routine monthly bills and purchases, bill small, then $300 to be approved by the general manager. Any questions?

222
00:15:13,270 --> 00:15:27,410
I have one clarification on that on item six, there's an error in this government code section should breed 549 566 and not 466.

223
00:15:28,010 --> 00:15:29,650
Okay. Well, did his be demanded?

224
00:15:31,410 --> 00:15:32,730
Hi. Thanks. Motion to approve.

225
00:15:33,130 --> 00:15:33,610
As an end.

226
00:15:34,330 --> 00:15:34,710
I'll second.

227
00:15:35,110 --> 00:15:37,090
We've got a motion in a second. Any more discussion?

228
00:15:37,590 --> 00:15:38,430
The roll call, please.

229
00:15:39,610 --> 00:15:40,210
Dr. O'Connor?

230
00:15:40,390 --> 00:15:40,650
Aye.

231
00:15:41,090 --> 00:15:42,050
Dr. Holcomb? Yes.

232
00:15:42,050 --> 00:15:48,230
Dr. Bulge. Director Robert. Director Van Wiggenen. Yes, this is 5-0.

233
00:15:48,710 --> 00:15:54,550
Then we move on to item number B, the sitter, independent of their support, if an

234
00:15:54,550 --> 00:16:00,810
answer statements for the year 2324, prepared by Bartlett Pregnant Wolf for action.

235
00:16:05,780 --> 00:16:09,900
Yes, good evening, directors. Tonight we have with us, Tracy Solomon, who's a partner with

236
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P.P. W. Who's prepared a presentation for you?

237
00:16:16,760 --> 00:16:17,160
Good evening.

238
00:16:18,440 --> 00:16:24,120
I believe you guys are going to navigate through the slides for the presentation this evening.

239
00:16:24,500 --> 00:16:28,500
Yes, I'll try to follow along, but let me know when you're moving from one slide to another.

240
00:16:29,260 --> 00:16:29,840
Okay, great.

241
00:16:31,400 --> 00:16:31,940
Thank you.

242
00:16:32,180 --> 00:16:43,460
So, as mentioned, I'm going to cover the June 30, 2024 financial statement on it for

243
00:16:43,460 --> 00:16:45,020
on the next slide.

244
00:16:45,620 --> 00:16:50,380
So in your board package, you received a few letters as well as the financial statements.

245
00:16:50,640 --> 00:16:53,580
So I'm going to start by going over the required communication.

246
00:16:54,100 --> 00:16:58,500
That's covered in those letters and then within the financial statements,

247
00:16:58,580 --> 00:17:02,960
I'll highlight the independent auditors report and then just highlight a few items

248
00:17:02,960 --> 00:17:06,020
within the financial statements themselves.

249
00:17:07,080 --> 00:17:11,400
So turning to the next slide, starting with the required communications

250
00:17:11,400 --> 00:17:21,360
In accordance with audit standards, a letter was provided to the agency regarding the planning phase communication and in the packet, it's referred to it. I believe that's the planning letter.

251
00:17:22,080 --> 00:17:28,340
It covers independence, the planning process, the concept of materiality, audit risk and timing.

252
00:17:28,340 --> 00:17:37,000
And then also a letter of required communication regarding the completion is included and that's our letter of required communication.

253
00:17:37,800 --> 00:17:48,720
And lastly, the third letter that was attached was the representation letter that will be signed by management and provided back to us as part of the completion of the audit.

254
00:17:48,720 --> 00:17:53,800
So, those are the letters I'm going to highlight just a couple of items from the required

255
00:17:53,800 --> 00:17:58,400
communication letter on the completion side of things.

256
00:17:59,680 --> 00:18:05,120
We included in that letter, we noted that we did not discuss with management any alternative

257
00:18:05,120 --> 00:18:11,440
treatments within generally accepted accounting principles for accounting policies or practices

258
00:18:11,440 --> 00:18:14,680
related to material items in the current year.

259
00:18:14,680 --> 00:18:23,640
There were no new accounting standards that impacted the district in the current year, nor have there been any changes to the existing significant accounting policies.

260
00:18:24,740 --> 00:18:35,520
We did not identify any significant unusual transactions that occurred in the year under audit, and there were no significant estimates that were reflected in the financial statements.

261
00:18:35,520 --> 00:18:40,380
There were no disagreements with management over the application of significant accounting

262
00:18:40,380 --> 00:18:45,020
principles, the basis of management's judgment on significant matters.

263
00:18:45,320 --> 00:18:49,860
The scope of the audit or any disclosures or the financial statements themselves.

264
00:18:51,120 --> 00:18:57,820
On the next slide, continuing with required communication in the back of the letter, we

265
00:18:57,820 --> 00:19:00,040
attach any audit adjustments.

266
00:19:00,040 --> 00:19:06,060
there was just one adjustment to reclassify interest payable out of the loan balance and that

267
00:19:06,060 --> 00:19:13,280
was for presentation purposes. And that was, as I mentioned, included in the letter. And then

268
00:19:13,280 --> 00:19:19,140
independence is noted as well, and both the planning and the completion letter. And just noting

269
00:19:19,140 --> 00:19:26,180
that we follow, we're required to maintain our independence and we follow the AACPA independence rules.

270
00:19:26,180 --> 00:19:39,620
BPDW does provide non-attest services and that's related to assistance with financial statement preparation and management's responsible for reviewing and approving that service that non-attest service.

271
00:19:40,560 --> 00:19:44,080
And then lastly here, internal control matters.

272
00:19:44,560 --> 00:19:51,600
We did not identify any material or significant deficiencies in internal control during the current year.

273
00:19:51,600 --> 00:19:58,060
and the prior year there was a letter that was issued and that was corrected and so no new

274
00:19:58,060 --> 00:20:06,260
comments in the current year. So turning to the independent auditors report included with the

275
00:20:06,260 --> 00:20:14,100
financial statements on page 1 that first paragraph notes that we issued and unmodified or clean

276
00:20:14,100 --> 00:20:20,600
audit opinions so that's what you want. In our opinion we note that the financial statements present

277
00:20:20,600 --> 00:20:22,940
fairly in all material respects.

278
00:20:24,180 --> 00:20:28,060
So that planning letter notes that concept of materiality

279
00:20:28,060 --> 00:20:30,580
that is used here in our audit report.

280
00:20:32,000 --> 00:20:34,020
And we conducted our audits in accordance

281
00:20:34,020 --> 00:20:36,040
with auditing standards generally accepted

282
00:20:36,040 --> 00:20:38,380
in the United States of America.

283
00:20:39,040 --> 00:20:40,920
And continuing on the audit report,

284
00:20:41,040 --> 00:20:43,940
there's a section for the auditor's responsibility.

285
00:20:44,480 --> 00:20:46,540
And in there we note that the audits

286
00:20:46,540 --> 00:20:49,260
planned and performed to obtain reasonable assurance,

287
00:20:49,260 --> 00:20:57,200
So not absolute about whether the financial statements are as a whole are free from material

288
00:20:57,200 --> 00:20:58,100
misstatements.

289
00:20:59,040 --> 00:21:04,180
And so we are selecting on a test basis when we perform our audit and we're sampling

290
00:21:04,180 --> 00:21:05,160
items throughout.

291
00:21:05,220 --> 00:21:06,720
So we're not testing everything.

292
00:21:07,780 --> 00:21:13,700
And then lastly, I noted that we did not see any internal control material items or

293
00:21:13,700 --> 00:21:20,520
significant items, deficiencies in internal control, and we note in the audit report that we consider

294
00:21:20,520 --> 00:21:26,040
districts internal controls over financial reporting for designing our audit procedures, but not

295
00:21:26,040 --> 00:21:32,380
for the purpose of expressing an opinion over the internal controls, and so accordingly we do not

296
00:21:32,380 --> 00:21:34,900
express an opinion over your internal controls.

297
00:21:37,300 --> 00:21:40,360
On turning to the next slide, the basic financial

298
00:21:40,360 --> 00:22:01,360
statement start on page nine with a statement of net position. And this is a graph before we look at the actual statements themselves just a quick overview of your net position. So on the statement of net position, you have your total assets and your total liabilities. And then your net position is your assets, less your liabilities. And you can see here.

299
00:22:02,240 --> 00:22:09,820
2024's in blue and 2023's in green that your assets were 1.8 a significant increase from

300
00:22:09,820 --> 00:22:16,000
prior year. Your liabilities as well as a significant increase and your total net position

301
00:22:16,000 --> 00:22:23,940
it did at 593,000 which it was negative in the prior year. And so you can see the green from

302
00:22:23,940 --> 00:22:29,280
the 2023 that your liabilities actually exceeded your assets.

303
00:22:30,560 --> 00:22:38,000
Moving on to the next slide is a graph on your statement of revenue expenses and just showing

304
00:22:38,000 --> 00:22:46,760
a comparison from 2024 to 2023 and so operating revenues on your left there and operating

305
00:22:46,760 --> 00:22:55,220
expense in the middle. So operating revenue was 1.3 up from 956,000 so you can see an increase

306
00:22:55,220 --> 00:23:03,040
there and then your expenses actually went down in 2024 compared to 2023. So we'll talk about

307
00:23:03,040 --> 00:23:10,040
that a little bit more when we look at the actual statements themselves. Turning to the next slide.

308
00:23:11,460 --> 00:23:16,980
question please for good yeah sorry to interrupt this Patrick I'm not

309
00:23:16,980 --> 00:23:22,580
position the change year over year 23 to 24 going from negative to negative

310
00:23:22,580 --> 00:23:28,060
see the number there but can you comment on the you know the meaningful

311
00:23:28,060 --> 00:23:33,540
differences year over year that turned us from negative to positive yes definitely

312
00:23:33,540 --> 00:23:42,840
And so let's go to this couple slides forward and we'll look at the actual statement, yeah, that one.

313
00:23:43,380 --> 00:23:47,220
We'll look at the actual statement that shows the detail that makes it that.

314
00:23:47,840 --> 00:23:52,200
So in that graph we saw total assets was this top section here.

315
00:23:52,640 --> 00:23:58,620
So the total assets about midway on this statement was 1.8 and we were looking at that compared to the 404.

316
00:23:58,620 --> 00:24:05,560
row four, just real quick I'll highlight the lines that were reflected in that graph.

317
00:24:05,900 --> 00:24:10,640
And then about two thirds of the way down the page is your total liabilities.

318
00:24:11,160 --> 00:24:15,960
And so that was the other bar graph that we saw the 1.26 compared to the 619.

319
00:24:16,080 --> 00:24:25,380
And then the net position at the very bottom that was showing the negative to 15 in the prior going to 593 in the current era.

320
00:24:25,380 --> 00:24:33,240
So going back up to the top of this statement, we saw the, we'll start with current assets.

321
00:24:34,180 --> 00:24:40,600
So your current assets make up the largest portion of your total assets at about 1.1 million.

322
00:24:41,060 --> 00:24:47,880
And you can see that grant receivable is the largest component of that 892,000.

323
00:24:47,880 --> 00:24:57,620
And in prior year, that was 367,000, so that made up the bulk of the increase in your total current assets.

324
00:24:59,260 --> 00:25:17,220
Your capital assets, just below current assets, include your LLKRO, the Park Monitoring Well Project, that occurred during 2024, so 759,000 was recorded as of 2024 compared to zero in 2023.

325
00:25:17,220 --> 00:25:19,400
23 since that was a new project.

326
00:25:19,900 --> 00:25:25,540
So really the driving factor for the increase in total assets were your grant receivable

327
00:25:25,540 --> 00:25:29,500
increase and then your capital assets there.

328
00:25:29,740 --> 00:25:36,980
So those two things drove your assets up in 2024 and then looking at the liability section.

329
00:25:37,960 --> 00:25:44,240
Current liabilities were 971,000 in the current year compared to 219.

330
00:25:44,240 --> 00:25:53,700
So there was an additional borrowing that's reflected in that current portion, and that's related to the related party.

331
00:25:53,800 --> 00:25:56,580
Payable to Carpenteria Valley Water District.

332
00:25:57,440 --> 00:26:05,460
And that borrowing was mainly related to the El Caro project, just timing until Grant Funds came in.

333
00:26:05,460 --> 00:26:16,880
And then at your long-term liabilities, total were 293 compared to 390,000 or approximately 400,000 in the prior year.

334
00:26:17,320 --> 00:26:21,500
So a decrease in the long-term portion of the related party payable there.

335
00:26:22,100 --> 00:26:25,680
And then net position, as I mentioned, is assets minus liabilities.

336
00:26:26,400 --> 00:26:34,100
And so your assets one up more than your liabilities in that resulted in your total net position in increasing.

337
00:26:34,100 --> 00:26:42,420
You can see in the net position portion, the net investment capital assets, that's the 759 that we saw related to those

338
00:26:42,420 --> 00:26:45,620
that El Carol monitoring well project.

339
00:26:47,980 --> 00:26:56,880
That is positive, it's that 759 and that's not available for future spending since that's invested in your assets.

340
00:26:56,880 --> 00:27:05,600
And your unrestricted is still negative, it's 160, 6,000, but that's an improvement of about 49,000 from prior year.

341
00:27:07,100 --> 00:27:10,000
That's very helpful, especially for a newcomer.

342
00:27:10,280 --> 00:27:12,340
One thing you didn't come in while was cash.

343
00:27:12,420 --> 00:27:18,420
I think that's also a good performance there to have a positive, free cash flow.

344
00:27:18,980 --> 00:27:19,260
Yes.

345
00:27:19,260 --> 00:27:26,900
Yeah, your cash that's held with U.S. Bank did have over $150,000 improvement there as well.

346
00:27:29,040 --> 00:27:37,020
Yeah, and I'll just remark on that in our last two budgets, we added a cash reserves line,

347
00:27:37,240 --> 00:27:42,520
so we're trying to build up cash reserves, so we're not continuously barring money from CBWD.

348
00:27:43,680 --> 00:27:52,480
sensible. Thanks. Yeah, thank you. Okay, so if we move to the next slide,

349
00:27:54,620 --> 00:27:56,060
this is a snap

350
00:27:56,060 --> 00:28:00,560
shock from the statement of revenues expenses and changes in that position. That's on

351
00:28:00,560 --> 00:28:07,500
page 10 of your financial statements. And this has your revenues and expenses and then

352
00:28:07,500 --> 00:28:11,940
your change in that position. And then at the bottom is that net position that we saw

353
00:28:11,940 --> 00:28:15,620
from the other statement, the 593 at the very bottom,

354
00:28:15,840 --> 00:28:17,660
they're compared to that, 2015.

355
00:28:17,920 --> 00:28:20,700
So this is saying what happened during the year

356
00:28:20,700 --> 00:28:23,020
and that's the change and then what was our beginning

357
00:28:23,020 --> 00:28:26,060
that position and then what's our ending that position?

358
00:28:26,740 --> 00:28:28,000
So looking at the top there,

359
00:28:28,220 --> 00:28:36,380
you're operating revenue was 1.3 million compared to 956,000

360
00:28:36,380 --> 00:28:41,220
in the prior year, and you can see that's comprised of two items

361
00:28:41,220 --> 00:28:54,060
your parcel acreage base B assessment of 417,000 in 2024, and then your grant revenue of 891,000 in 2024.

362
00:28:55,060 --> 00:29:01,220
So overall, the increase from prior year for your operating revenue was 352,000.

363
00:29:02,720 --> 00:29:05,340
Moving to the operating expense section.

364
00:29:05,340 --> 00:29:20,100
You're operating expenses in 2024. We're 495,000 and this is a decrease from prior year of approximately 324,000 and the decrease was due to a couple of items.

365
00:29:20,500 --> 00:29:28,460
You can see your groundwater operation line item there decreased and so that was related to in 2023.

366
00:29:28,460 --> 00:29:35,420
three you had groundwater professional services for the GSP development that was going on in 2023.

367
00:29:36,660 --> 00:29:43,140
So those expenses didn't recur in 2024 and then in 2024 a lot of the expenses that were

368
00:29:43,140 --> 00:29:48,960
incurred were related to the L-Carrow Park Monitoring Wells project that we saw in the previous

369
00:29:48,960 --> 00:29:56,820
statement and those were capitalized. So those expenses didn't show up here. They were capitalized

370
00:29:56,820 --> 00:29:59,960
and their in your assets and will be amortized over.

371
00:30:00,000 --> 00:30:08,000
Civil life of that asset. So, overall, you're operating expense decrease. So, we see operating

372
00:30:08,000 --> 00:30:18,920
income at 2024 with 813,000 compared to 137 in the prior year. And then, non-operating income

373
00:30:18,920 --> 00:30:25,420
and expense, a pretty small amount, and that mostly relates to your interest expense. So, you're

374
00:30:25,420 --> 00:30:31,740
overall change for the year that contributed, going back to that question, what were the

375
00:30:31,740 --> 00:30:39,140
things that resulted in that positive change, so revenue exceeding your expenses added

376
00:30:39,140 --> 00:30:40,780
to that bottom line there.

377
00:30:45,360 --> 00:30:49,400
Additionally included in the financial statements is footnote

378
00:30:49,400 --> 00:30:54,200
disclosures that provide some additional detail on some of the line items included in

379
00:30:54,200 --> 00:31:00,320
financial statements. They remain pretty comparable year over year, of course, updated for

380
00:31:00,320 --> 00:31:05,380
anything new. And so I wasn't going to highlight any of the financial statements, but if there's

381
00:31:05,380 --> 00:31:10,860
any questions on any of the statements that I just mentioned or anything else, I would be happy

382
00:31:10,860 --> 00:31:12,000
to address those.

383
00:31:15,140 --> 00:31:20,340
I had a quick one. Just I guess a curiosity question. On a, there's not a tremendous amount of

384
00:31:20,340 --> 00:31:25,940
transactions in the agency. What is the percentage of like transactions reviewed in an

385
00:31:25,940 --> 00:31:36,180
like this. But we don't look at a percentage so we use different sampling methods to do it and

386
00:31:36,180 --> 00:31:43,900
so depending if there's high value items we might get really good coverage on one specific account

387
00:31:44,700 --> 00:31:51,680
if there's fewer items that make up a bigger percentage and if there's more smaller items

388
00:31:51,680 --> 00:31:56,940
Let's say a peer, something like that, then the coverage isn't going to be as high.

389
00:31:57,080 --> 00:31:58,260
So it really varies.

390
00:31:59,060 --> 00:32:04,360
We look at dollar amounts, we have that concept of materiality that I talked about.

391
00:32:04,560 --> 00:32:11,080
So we're looking at significance of individual line items, and then we're sampling based

392
00:32:11,080 --> 00:32:18,600
on those line items, and we are looking at high value items, and then we randomly test non-high

393
00:32:18,600 --> 00:32:19,500
value items.

394
00:32:20,120 --> 00:32:20,600
Thanks.

395
00:32:21,900 --> 00:32:22,740
Any other questions?

396
00:32:25,640 --> 00:32:26,200
Thank you, Tracy.

397
00:32:26,420 --> 00:32:27,820
Do you want to file this report?

398
00:32:28,300 --> 00:32:28,940
Do we need a motion?

399
00:32:29,540 --> 00:32:30,860
Emotion to file it?

400
00:32:31,240 --> 00:32:32,180
Yeah, receiving file.

401
00:32:32,480 --> 00:32:33,840
How it makes motion to receive in file.

402
00:32:34,040 --> 00:32:37,140
I want to thank staff and Tracy for all the work they've done.

403
00:32:37,680 --> 00:32:38,360
I'll second that.

404
00:32:38,520 --> 00:32:39,380
Motion is second.

405
00:32:39,580 --> 00:32:40,280
Any more discussion?

406
00:32:40,720 --> 00:32:41,500
Roll call, please.

407
00:32:42,260 --> 00:32:42,960
Director O'Connor?

408
00:32:43,980 --> 00:32:44,400
Director Holcomb?

409
00:32:44,720 --> 00:32:44,740
Yes.

410
00:32:45,280 --> 00:32:45,800
Director Ball?

411
00:32:45,920 --> 00:32:46,280
Aye.

412
00:32:46,680 --> 00:32:47,200
Director Robert?

413
00:32:49,260 --> 00:32:50,580
Motion passes by zero.

414
00:32:50,580 --> 00:32:57,460
and then item number C consider resolution number 035 updating check signers for action

415
00:32:57,460 --> 00:33:05,600
Bob. We have a new director and so we need to do an update on the signatures that

416
00:33:06,480 --> 00:33:10,140
are allowable for our bank for the GSA.

417
00:33:10,420 --> 00:33:15,300
Some moved. I guess most in the second any discussion roll call please.

418
00:33:15,300 --> 00:33:16,520
Director O'Connor?

419
00:33:16,720 --> 00:33:16,820
Hi.

420
00:33:17,000 --> 00:33:17,760
Director Holcomb?

421
00:33:17,940 --> 00:33:18,200
Yes.

422
00:33:18,720 --> 00:33:19,360
Director Bulge?

423
00:33:19,380 --> 00:33:19,700
Hi.

424
00:33:19,960 --> 00:33:20,540
Director Robert?

425
00:33:20,780 --> 00:33:21,900
Director Van Wiggenen?

426
00:33:22,020 --> 00:33:22,380
Yes.

427
00:33:22,620 --> 00:33:23,840
Motion passes 5-0.

428
00:33:24,220 --> 00:33:30,180
Item number D consider resolution number 0-3-6 updating the GSA conflict of interest for

429
00:33:30,180 --> 00:33:31,280
actually bug.

430
00:33:32,360 --> 00:33:33,120
We're required.

431
00:33:33,860 --> 00:33:38,180
Actually, we're newly required for the GSA to have a conflict of interest.

432
00:33:38,880 --> 00:33:49,840
code, and we're required to do a review of those codes every two years, and so the CVWD,

433
00:33:49,900 --> 00:34:02,600
it's on the CVWD agenda, was reviewing the code, and we thought, well, let's do the GSA as

434
00:34:04,600 --> 00:34:14,420
In the packet, the drafts, conflict of interest coaches in there, simply identifies who's

435
00:34:14,420 --> 00:34:22,140
required to do reporting, some key differences in the code, they're based on the state's

436
00:34:22,140 --> 00:34:23,900
model code update.

437
00:34:24,360 --> 00:34:26,220
And so the state puts out a model code.

438
00:34:26,420 --> 00:34:31,360
We look at that and we look at our own code and updated accordingly.

439
00:34:31,360 --> 00:34:40,560
There were some value for gifts and other things, I believe,

440
00:34:44,180 --> 00:34:45,180
all the chains are in red line,

441
00:34:45,680 --> 00:34:47,600
but do you know which section that is?

442
00:34:50,510 --> 00:34:51,650
Yeah, one of the 590.

443
00:34:53,410 --> 00:34:58,950
So it's just the donor disqualification raised to 590 and also the prohibition on gifts.

444
00:35:03,780 --> 00:35:20,500
And so we have to approve this by a resolution, so this is a resolution 36, but you have any questions, if not out?

445
00:35:20,840 --> 00:35:22,380
I've just got one small question.

446
00:35:22,640 --> 00:35:25,180
I read through the changes seems pretty not clear.

447
00:35:25,640 --> 00:35:32,520
But it's not clear is there any other action for the board or the other responsible, you know, parties to that policy.

448
00:35:33,160 --> 00:35:37,940
besides the forms of an hundred. Is there anything else about this? Is the disclosure requirements?

449
00:35:37,940 --> 00:35:45,240
Yeah, the reporting and disclosure requirements. Oh, if you did seven hundred you're good. Well, for each agency. So

450
00:35:45,240 --> 00:35:50,180
correct. And there are different agencies. So, unfortunately, you would have to do that too. And I believe the

451
00:35:53,180 --> 00:36:01,240
GSA is different. It's not, is it's directly with the FPC, right? Yeah. So it's a little bit different than the

452
00:36:02,900 --> 00:36:14,640
CVWD reporting, which is done through the county elections office, but we'll go over all of that as the time comes in a couple of months.

453
00:36:15,440 --> 00:36:19,640
Plus, we do. Was it annual conflict of interest training?

454
00:36:20,960 --> 00:36:22,120
The ethics training?

455
00:36:22,340 --> 00:36:22,880
Every year?

456
00:36:23,760 --> 00:36:24,620
Every year?

457
00:36:24,620 --> 00:36:24,780
Every year?

458
00:36:26,460 --> 00:36:26,820
Okay.

459
00:36:27,120 --> 00:36:30,040
I just want to just pray more important than the whole Bible, but that's okay.

460
00:36:30,620 --> 00:36:33,780
But the 700 form. I mean, that's not that's a pretty big

461
00:36:34,520 --> 00:36:40,920
Yeah, that's a lot. Yes, yes, do it for every help this guys in there in DC use the same form we do

462
00:36:43,410 --> 00:36:45,550
We need motion. I probably makes much

463
00:36:47,030 --> 00:36:51,810
Second we got a motion the second and any more discussion roll call, please

464
00:36:51,810 --> 00:37:00,630
Director of Connor. I direct to Holcomb. Yes, direct to Volts. I direct Roberts. I direct to Van McGregor. Yes, motion passes five zero

465
00:37:01,410 --> 00:37:05,410
And then we got Executive Director reports, six A financials.

466
00:37:07,630 --> 00:37:08,150
I know.

467
00:37:08,390 --> 00:37:08,730
All right.

468
00:37:09,170 --> 00:37:09,310
Yeah.

469
00:37:09,570 --> 00:37:14,310
Financials through November 30th, so over 42% of the year at November, our revenues

470
00:37:14,310 --> 00:37:17,170
for the CGSA are at 37%.

471
00:37:17,690 --> 00:37:18,970
Again, it's on the tax.

472
00:37:19,070 --> 00:37:22,450
Also, it's just payments that we were dispersements that we received from the county

473
00:37:22,450 --> 00:37:23,630
through the end of November.

474
00:37:25,630 --> 00:37:29,750
And then our operating expenditures are at about 24% through the year.

475
00:37:31,420 --> 00:37:33,300
Any questions,

476
00:37:36,280 --> 00:37:40,840
then we are adjourned and we are re-adjourning the regular meeting of the

477
00:37:40,840 --> 00:37:42,280
Carpety Valley Water District.

478
00:37:51,060 --> 00:37:54,460
So I just the question is, which item does Will

479
00:37:54,460 --> 00:37:58,880
Carthland want to read? That will be item 7B.

480
00:38:01,270 --> 00:38:03,550
It will be. It will be.

481
00:38:09,570 --> 00:38:12,110
I believe there is one more comment on that item.

482
00:38:12,110 --> 00:38:21,290
You've got surely an item C, something C, so we got will for a seven B, and we got surely for a seven C.

483
00:38:21,790 --> 00:38:22,930
At least anybody else,

484
00:38:25,020 --> 00:38:26,840
unless the board's wanted to participate.

485
00:38:28,800 --> 00:38:29,420
Anyhow,

486
00:38:32,740 --> 00:38:42,040
a new business, a seven A, consider a project update for CAP for information, Bob, and a presentation by Chris Meligan.

487
00:38:43,660 --> 00:38:51,320
Yeah, so this is a project update from a design standpoint and project manager standpoint.

488
00:38:51,540 --> 00:39:00,220
As you recall, WSC is our project management company for this project and so they're kind of working on all the ends of this project.

489
00:39:01,080 --> 00:39:06,200
And so Chris is here tonight to give kind of an update of where we are.

490
00:39:06,740 --> 00:39:08,300
Chris, are you with us?

491
00:39:08,660 --> 00:39:09,320
Yes, I am.

492
00:39:09,320 --> 00:39:10,200
You hear me?

493
00:39:10,580 --> 00:39:13,440
Can you see the screen?

494
00:39:15,540 --> 00:39:16,500
Yes, I can.

495
00:39:17,380 --> 00:39:18,660
Just let me know when you want to advance.

496
00:39:19,440 --> 00:39:19,700
Great.

497
00:39:19,920 --> 00:39:20,760
Well, thank you, Bob.

498
00:39:21,340 --> 00:39:21,560
Okay.

499
00:39:21,720 --> 00:39:23,220
Well, good evening, everyone.

500
00:39:23,900 --> 00:39:31,140
As Bob noted, this is just a general project overview presentation, covering various aspects

501
00:39:31,140 --> 00:39:32,920
of ongoing activities.

502
00:39:34,000 --> 00:39:36,340
So let's go to next slide.

503
00:39:36,340 --> 00:39:44,340
So, if it's our agenda, we'll briefly discuss where we're at with design of the project,

504
00:39:45,140 --> 00:39:47,580
provided small permitting updates,

505
00:39:49,700 --> 00:39:52,500
outreach, contractor coordination,

506
00:39:54,700 --> 00:39:57,220
and discuss upcoming milestones.

507
00:39:58,460 --> 00:39:59,380
So, next slide.

508
00:40:03,090 --> 00:40:12,490
Just as a current update to the design progression, and as a quick reminder, we are currently

509
00:40:12,490 --> 00:40:19,650
developing three different design packages, and when I say we, it's the project team.

510
00:40:19,950 --> 00:40:26,910
Design is being done by wooded and current, and so that we've got three separate packages,

511
00:40:26,910 --> 00:40:35,130
the AWPF for the actual facility design, the conveyance pipelines, and then the injection and monitoring

512
00:40:35,130 --> 00:40:42,810
wells. Those are split into three packages for a couple of different reasons. Primarily

513
00:40:42,810 --> 00:40:52,310
the contractor that will extract the AWPF is rather specialized, and there are only certain

514
00:40:52,310 --> 00:40:57,210
number of larger firms to have the qualifications to construct

515
00:40:57,210 --> 00:40:59,630
advanced water purification facility.

516
00:41:01,790 --> 00:41:06,250
But we don't want to lump the entire project within the single construction

517
00:41:06,250 --> 00:41:11,910
package because that will prohibit smaller local contractors from

518
00:41:11,910 --> 00:41:13,350
participating in the program.

519
00:41:14,510 --> 00:41:19,430
So by separating the ADMPS from our advanced pipelines, we do give

520
00:41:19,430 --> 00:41:25,450
opportunities for smaller local contractors to participate in the form of constructing the

521
00:41:25,450 --> 00:41:33,850
conveyance pipeline. And then the injection and monitor wells such as specialized instruction

522
00:41:33,850 --> 00:41:41,390
efforts that the A to the PF contractors would need to sub that work out anyway in this entirety.

523
00:41:42,330 --> 00:41:46,950
So for those reasons we have three separate design packages. The A to the PF is currently

524
00:41:46,950 --> 00:41:51,970
the in-between 75% and 100%.

525
00:41:51,970 --> 00:41:56,910
So what are the parents admitted the 75% design package in October?

526
00:41:57,810 --> 00:42:05,150
That was reviewed by our firm as well as the corporate standard theory district and Bob

527
00:42:05,150 --> 00:42:10,210
and comments were returned to them in December.

528
00:42:10,210 --> 00:42:21,490
We've had some review meetings to review those comments and they're currently on track to submit the 100% design in February.

529
00:42:22,410 --> 00:42:33,630
After there's still another short design tier or short review period before a midset document will be produced and we expect that in May of this year.

530
00:42:33,630 --> 00:42:41,190
We have received, or we received 75% design for the conveyance pipelines and injection

531
00:42:41,190 --> 00:42:50,530
amount to wells in later December, those packages have been reviewed, and comments returned

532
00:42:50,530 --> 00:42:56,270
on the injection mines from wells, actually just earlier this week, and then it's a

533
00:42:56,270 --> 00:43:01,530
state of returning comments on the conveyance pipelines later this week, and then those

534
00:43:01,530 --> 00:43:10,490
scheduled to move forward to 100% design with complete shin and April timeframe, and then

535
00:43:10,490 --> 00:43:20,590
ultimately going out to bid on the AWS and May will have somewhat extended period, because

536
00:43:20,590 --> 00:43:26,150
of the complexity of the project beyond what you might typically see for construction projects,

537
00:43:26,150 --> 00:43:28,710
And then with conveyance and injection,

538
00:43:28,970 --> 00:43:31,630
mantra will bid in shortly behind it.

539
00:43:32,850 --> 00:43:37,270
But with the expectation that we're gonna have bids

540
00:43:37,270 --> 00:43:44,450
for all three when we bring them to the board

541
00:43:44,450 --> 00:43:47,230
or at least native pf project to the board

542
00:43:47,230 --> 00:43:50,630
for consideration the approval of the contract.

543
00:43:51,570 --> 00:43:53,070
And currently, it's stated for July,

544
00:43:55,610 --> 00:43:56,130
next slide.

545
00:43:57,800 --> 00:44:06,060
for our permitting and a piloting three of our key project permits that are going.

546
00:44:07,380 --> 00:44:12,800
Our first is our conditional east permit called development permit with the city of Carpenteria.

547
00:44:14,560 --> 00:44:18,880
We have seen this slide similar kind of update a few months ago.

548
00:44:19,280 --> 00:44:23,440
That application went into the city and August last year.

549
00:44:23,440 --> 00:44:44,340
The city reviewed, admitted their letter of non-completeness, which we expected, because there are few outstanding items that we won't have, especially as it relates to the easements with the Catholic Church that we talked about in December.

550
00:44:45,900 --> 00:44:49,600
We've got our responses to those comments to the city.

551
00:44:50,940 --> 00:44:55,720
We anticipate those still moving forward with the opposite of the city.

552
00:44:55,880 --> 00:44:59,680
We've been forward with the application as they can and sort of expect.

553
00:45:00,000 --> 00:45:07,000
Our public hearing sometime in April before we go out to bid.

554
00:45:09,740 --> 00:45:16,500
And then, for our waste discharge, water reclamation permits, this is really the permits granted by some

555
00:45:16,500 --> 00:45:29,980
to post regional water quality control board that allows for the facility to operate in the injection of the

556
00:45:29,980 --> 00:45:36,740
the W over the last couple of months, we've discussed approaches to some of the more technical

557
00:45:36,740 --> 00:45:44,460
aspects that are more projects specific. So, the anti-degradation and geochemical analysis

558
00:45:44,460 --> 00:45:52,020
studies that are required in the part of the Title 22 engineering report. So, the anti-degradation

559
00:45:52,020 --> 00:46:02,580
study, it's a study that evaluates and sort of affirms that the injection of the purified

560
00:46:02,580 --> 00:46:13,560
water won't introduce contaminants into the groundwater basin above the thresholds deemed

561
00:46:13,560 --> 00:46:21,560
five regulations. So, one of particular that we are concerned and look at is boron, which is

562
00:46:22,120 --> 00:46:31,980
somewhat higher in CBWVs, audible water supply, primarily stemming from like a tumour water,

563
00:46:32,340 --> 00:46:39,760
then it is in the background, brown water. And so, some of the work that we've done recently

564
00:46:39,760 --> 00:46:48,360
sort of shows that we're not going to substantively reduce or impact the groundwater

565
00:46:48,360 --> 00:46:55,860
quality from the injection of our certified water and those meetings discussed the

566
00:46:55,860 --> 00:47:00,520
approach and sort of our preliminary findings were held recently with the State Board

567
00:47:00,520 --> 00:47:04,020
before we finalized any technical documents to them.

568
00:47:04,020 --> 00:47:14,420
Similarly, we've got a GM chemical analysis and that analyzes the mobilization of constituents through the addition of pure flood water.

569
00:47:15,180 --> 00:47:27,100
So chiefly among them that stuff concern is arsenic, where arsenic may be elevated after the introduction of pure flood water.

570
00:47:27,100 --> 00:47:38,940
Again, we've sort of done some initial analysis to that, and that draft report was submitted to the reasonable board at the latter part of 2024.

571
00:47:40,440 --> 00:47:55,140
Those documents along with the general description of the facility and how we're going to address Title 22 requirements all go into an engineering report, which is submitted to the Division of Drinking Water.

572
00:47:55,140 --> 00:48:03,440
We anticipate submitting and spring this year, which will give DDW about a year for review,

573
00:48:03,680 --> 00:48:11,080
which is about the expectation, because they are so backlogged, and all of that needs

574
00:48:11,080 --> 00:48:18,500
to be submitted and approved before we can ultimately submit our report, the voice discharge,

575
00:48:19,700 --> 00:48:22,520
and begin operation of the facility.

576
00:48:23,740 --> 00:48:27,220
But we're coordinating so closely with the regulators

577
00:48:28,220 --> 00:48:31,880
because we know that we're not going to get

578
00:48:31,880 --> 00:48:34,900
and it's just simply the process of these facilities.

579
00:48:35,780 --> 00:48:41,880
You are permits for an operation before we start construction.

580
00:48:42,800 --> 00:48:45,700
So that is just the normal course of these projects.

581
00:48:46,020 --> 00:48:47,620
Can I ask you a question on that, Chris?

582
00:48:47,620 --> 00:48:50,940
Yes, why is that?

583
00:48:51,380 --> 00:49:01,680
Well, so much of the information that goes into the reports, the antidexted study, the

584
00:49:01,680 --> 00:49:08,620
geochemical analysis, and the title point to report, is based on the design.

585
00:49:09,920 --> 00:49:23,040
And so you could theoretically pause after the design is complete or mostly completes before

586
00:49:23,040 --> 00:49:28,900
you're going out to bed and wait, I think, to go through this process.

587
00:49:29,100 --> 00:49:33,920
And there are some things that those still likely cannot be completed, I think they do look

588
00:49:33,920 --> 00:49:36,900
for information specific to your projects.

589
00:49:37,340 --> 00:49:43,880
So, right, we prepare projects that say we're going to, you know, contract, you must

590
00:49:43,880 --> 00:49:49,940
meet all of these requirements with your RO, but we don't specify a vendor.

591
00:49:50,940 --> 00:49:56,080
We don't specify the various specific details regarding the package, but they must meet

592
00:49:56,080 --> 00:49:59,780
these requirements for our project.

593
00:49:59,780 --> 00:50:07,520
And so some of that just simply goes into the report and you can't know that exactly until you've got it on track for on board.

594
00:50:10,720 --> 00:50:19,080
So for those reasons, you know, we, it's just not how these facilities operate and that's okay.

595
00:50:19,540 --> 00:50:27,840
Again, because we are working so closely to review the project and these studies ahead of time.

596
00:50:28,840 --> 00:50:36,340
And to the extent that we can, we're incorporating any comments that we receive, or feedback that we receive now.

597
00:50:38,260 --> 00:50:40,900
Okay, see does that answer your question?

598
00:50:41,060 --> 00:50:47,400
Yeah, I think it answers my question, so it sounds like generally it just proceeds ahead because people want to do.

599
00:50:48,180 --> 00:50:54,340
Yeah, yeah, I mean, like I said, I think they're probably, I mean, if you really wanted to wait, you could.

600
00:50:55,660 --> 00:51:04,080
But that means there'd be a long period of time between submission of the title 20 reports,

601
00:51:04,740 --> 00:51:08,220
approval of that report, but you'd be sitting on the documents.

602
00:51:09,520 --> 00:51:15,340
All the while inflation is occurring, project cost kind of never go down over time,

603
00:51:15,340 --> 00:51:24,740
very rarely go down over time and so you're you're doing the project at the service by not

604
00:51:24,740 --> 00:51:32,740
proceeding in parallel. So does DDW issue prior to the regional board for dischargers at the other way around

605
00:51:32,740 --> 00:51:39,140
or is it kind of decided together? Yeah, so you get or after submission for division of drinking water

606
00:51:39,140 --> 00:51:46,560
approves the title 22 into an import, only then can you really submit your application to

607
00:51:46,560 --> 00:51:54,300
the regional board for your waste discharge water reclamation permit. So regional board requires

608
00:51:54,300 --> 00:52:02,960
approval of the title 22 reports before they want to see an application. And so once DDW

609
00:52:02,960 --> 00:52:08,580
produce it, which is about a year, what's the regional boards turn around like much faster.

610
00:52:10,320 --> 00:52:18,560
I mean, obviously we can't troll it, the things can vary, but the bulk of the review

611
00:52:18,560 --> 00:52:21,040
process occurs during the title point two report.

612
00:52:21,720 --> 00:52:25,160
So it should be on the order of a couple of months.

613
00:52:25,740 --> 00:52:30,640
We'll stay at three to six months and that time has been incorporated into our schedule.

614
00:52:30,640 --> 00:52:37,520
So ultimately with the goal of having that permanent in place before beginning the initial

615
00:52:37,520 --> 00:52:45,360
pescine phase of the facility, and all of that time, review time is currently built

616
00:52:45,360 --> 00:52:51,260
through the schedule and where are spring of 25 for submission of the total 20 injury

617
00:52:51,260 --> 00:52:53,340
report comes in a play.

618
00:52:54,460 --> 00:52:54,520
Thanks.

619
00:52:55,300 --> 00:53:00,620
I think I had a silver question Chris that was partially answered on the year that the

620
00:53:01,440 --> 00:53:05,700
DWR takes and just to make sure we don't have to just sit there, is there a certain

621
00:53:05,700 --> 00:53:11,640
pinging that either we do Bob or that Chris does to be in touch with that to see how it's

622
00:53:11,640 --> 00:53:15,780
going or any kind of tracking just to make sure that we're not caught off guard after three months

623
00:53:15,780 --> 00:53:22,200
or six months. Oh, we actually waiting for this information is there. We're having team meetings with

624
00:53:22,200 --> 00:53:29,680
the staff at both agencies to make sure that they're seeing what we're doing when we do submit the

625
00:53:29,680 --> 00:53:38,780
applications. No, no, no, of course not. Yeah. Thanks, Bob. Yeah, I've got a couple of questions

626
00:53:38,780 --> 00:53:45,720
of like, good. This is Patrick. I apologize for naive questions coming in. It's not all so to speak.

627
00:53:46,600 --> 00:53:50,320
I'll just give you the questions and you're fair to answer them as quickly as I'm asking them.

628
00:53:51,800 --> 00:53:58,520
One is, can you give a sense for the amount of impact on step four there, the impact

629
00:53:58,520 --> 00:54:05,140
of residents and businesses just out of curiosity and how order of magnitude, would you

630
00:54:05,140 --> 00:54:06,160
express that?

631
00:54:06,420 --> 00:54:11,060
And the second is with respect to the schedule that we were just talking about is an expectation

632
00:54:11,060 --> 00:54:17,040
of an impact of current events down in LA County in competition for resources, you know, as

633
00:54:17,040 --> 00:54:18,680
we're setting out these bid packages.

634
00:54:19,720 --> 00:54:28,500
Yeah, thank you. Those are two good questions. So the step for that reach from the project team to residents and this is impacted.

635
00:54:30,360 --> 00:54:47,660
So as a part of this CPCDP process, we provided the city with our 300 foot zone around the project area where they are going to notify the planning commission hearing.

636
00:54:47,660 --> 00:54:56,060
And that includes the facility, the alignment of the advanced pipeline, and it's also

637
00:54:56,060 --> 00:55:01,660
the wells, as a part of our project and process.

638
00:55:02,100 --> 00:55:12,360
We intend to do similar outreach, their city's notification is going to be very matter

639
00:55:12,360 --> 00:55:20,740
fact about the projects and, you know, it's, I think, imperative that we provide that's

640
00:55:20,740 --> 00:55:25,880
similar kind of outrage to those residents about the benefits of the project.

641
00:55:27,640 --> 00:55:32,900
Sorry, so we have tens or hundreds of properties or what sort of magnitude we're talking about.

642
00:55:33,380 --> 00:55:39,640
It is definitely in the hundreds of properties, yes, because it covers the entire pipeline

643
00:55:39,640 --> 00:55:43,340
and alignments from the existing wastewater treatment plant,

644
00:55:44,060 --> 00:55:47,200
all the way up to Lyndon and METO view.

645
00:55:48,360 --> 00:55:50,360
So it is, yeah, I don't know the number off-hand

646
00:55:50,360 --> 00:55:53,980
I apologize, but it is in the hundreds of notifications.

647
00:55:55,660 --> 00:55:56,340
Good enough, thanks.

648
00:55:57,380 --> 00:55:59,360
And then your second question,

649
00:56:00,860 --> 00:56:03,840
obviously that's really hard to know

650
00:56:05,060 --> 00:56:13,380
And very tragic that the communities down in the area are facing, you know, my initial sort

651
00:56:13,380 --> 00:56:23,040
of gut that the, you know, the contractor overlap between those that are going to support

652
00:56:23,040 --> 00:56:33,820
all of the homeless families who've lost so much down there is different than, you know,

653
00:56:33,820 --> 00:56:41,540
building this facility, you know, they specialize in large largely anyway specialized in

654
00:56:41,540 --> 00:56:43,460
treatment, facility construction.

655
00:56:46,500 --> 00:56:51,460
So, you know, what may there be impacts from a material standpoint

656
00:56:51,460 --> 00:57:01,330
concrete, for example, you know, I can't say no, I'm not exactly sure, but, you know, they're

657
00:57:01,330 --> 00:57:07,210
certainly maybe. That's kind of an honest or I know. Well, you're moving. Yeah. Okay. Yeah.

658
00:57:08,850 --> 00:57:11,110
Thanks. Mm-hmm.

659
00:57:14,950 --> 00:57:21,210
Okay. I'll reach. Yeah. Quick. Quick update here. So at this point in time,

660
00:57:22,490 --> 00:57:31,730
we have now held listening sessions with the entire board, both your board and the

661
00:57:31,730 --> 00:57:38,690
a sanitary district board, which has been very great and formative and appreciate everyone's

662
00:57:38,690 --> 00:57:40,470
time here and doing that.

663
00:57:42,090 --> 00:57:49,370
We intend to present summary of those listed instructions at the next four meeting.

664
00:57:50,850 --> 00:57:54,810
Concurrently, we're moving forward with market research.

665
00:57:54,810 --> 00:58:01,910
So, we met with FM3, Marka Research firm, last Friday, kicked them off.

666
00:58:02,830 --> 00:58:05,170
Some initial feedback was provided to them.

667
00:58:05,610 --> 00:58:10,730
Their next step is to generate survey questions that will go out to the community.

668
00:58:11,970 --> 00:58:19,250
We anticipate also presenting draft of those questions to this board at the next meeting.

669
00:58:19,250 --> 00:58:23,610
And so you should see those two items come up at the next meeting.

670
00:58:24,650 --> 00:58:29,530
And the information that we gather from, or we have gathered from the list and sessions

671
00:58:29,530 --> 00:58:37,590
plus all the markets research is going to be key and informing the outreach materials that

672
00:58:37,590 --> 00:58:43,410
master messaging for the facility and the project, including the development of the general

673
00:58:43,410 --> 00:58:49,230
presentation that can be given, just a high level project.

674
00:58:49,230 --> 00:58:57,570
presentation, it will help inform future publications, new articles, new articles, and the

675
00:58:57,570 --> 00:59:05,230
coastal view, it will help inform our bill insert that we're intending to send out, noting

676
00:59:05,230 --> 00:59:11,390
as I was talking about to this maybe the application, project video, and then general information

677
00:59:11,390 --> 00:59:12,550
I could,

678
00:59:16,060 --> 00:59:36,620
okay, excline, minor kind of quick updates here. So at the last board meeting, your board approved the offer for the St. Joseph church easement, that offer was mailed on December 20th.

679
00:59:36,620 --> 00:59:45,740
no real hard update here other than noting that the district's consultant and our

680
00:59:45,740 --> 00:59:50,840
jewel property consultant made initial contact. There's still trying to catch up from the holidays,

681
00:59:51,860 --> 00:59:59,940
but we hope to hear some initial feedback here soon. And then something else that we're undertaking here.

682
01:00:00,430 --> 01:00:22,070
This springtime is conducting some of that contractor outreach. So it's important to inform contractors of projects of this kind of management to well ahead of when we intend to release the documents.

683
01:00:22,070 --> 01:00:28,830
It's a pretty significant undertaking for these contractors to put a price, a firm price, and a

684
01:00:28,830 --> 01:00:29,730
bid together.

685
01:00:30,630 --> 01:00:39,110
The design package will include more than 300 design sheets, specifications are 2,000 pages

686
01:00:39,110 --> 01:00:40,090
long.

687
01:00:40,410 --> 01:00:48,990
It takes a long time for them to review and make sure that their bid is competitive as it can

688
01:00:48,990 --> 01:00:59,270
And so it really helps to reach out and get contractors who are qualified up to speed on the facility.

689
01:01:00,770 --> 01:01:03,430
Give them some information about it.

690
01:01:03,430 --> 01:01:05,670
Kind of get them excited about the project.

691
01:01:05,950 --> 01:01:09,190
Get them wanting to sharpen their pencils on the project.

692
01:01:09,950 --> 01:01:16,870
It helps enhance the number of contractors who will participate.

693
01:01:16,870 --> 01:01:22,710
And ultimately, you know, hopefully, leading to a more competitive bid.

694
01:01:23,370 --> 01:01:30,830
And we've reached out to nine contractors who we know have worked on so much facilities throughout the state.

695
01:01:31,750 --> 01:01:36,490
And thus far, we've conducted two tours at the 16th of the 16th of the 16th of the facilities,

696
01:01:37,250 --> 01:01:41,110
and generally provided information related to the projects.

697
01:01:41,110 --> 01:01:49,290
and as we continue to reach out and the contractors request will hold additional tours.

698
01:01:52,080 --> 01:01:52,700
Next slide.

699
01:01:55,310 --> 01:02:00,890
So finally, just to put sort of milestone update here, we're going to see in

700
01:02:00,890 --> 01:02:09,350
the next couple of months. February, design documents on a percent for AWS PF, water supply

701
01:02:09,350 --> 01:02:17,390
alternative analysis and an economic analysis updates in March. Hopefully we'll have our community

702
01:02:17,390 --> 01:02:24,250
survey results and then 100% design documents for advanced pipelines, commission planning

703
01:02:24,250 --> 01:02:33,090
commission here in an April, may advertise our big package for the AWS and operations agreement

704
01:02:33,090 --> 01:02:37,130
execution, and then finally in early summer,

705
01:02:37,890 --> 01:02:41,610
advertised the pipeline, sponsored wells, and then receive

706
01:02:41,610 --> 01:02:44,390
our bids for all three debt packages.

707
01:02:47,240 --> 01:02:48,860
And I think that concludes my presentation.

708
01:02:51,440 --> 01:02:52,080
Any questions?

709
01:02:54,340 --> 01:02:58,020
Is there a map of the impact and properties that already exist?

710
01:03:00,180 --> 01:03:00,800
Yes.

711
01:03:00,800 --> 01:03:07,380
that the the radius map was submitted to the city as a part of the application.

712
01:03:10,150 --> 01:03:11,110
Thank you.

713
01:03:11,110 --> 01:03:12,410
I have a really dumb question.

714
01:03:14,230 --> 01:03:18,310
But if nobody bids, I mean, I've been there before when you just, you thought,

715
01:03:18,430 --> 01:03:20,730
you're going to get a couple bitters and give it.

716
01:03:20,970 --> 01:03:22,970
And so, I mean, not to be negative.

717
01:03:23,050 --> 01:03:25,450
I'm not a negative person, but I know bids.

718
01:03:25,710 --> 01:03:26,470
And I know our fees.

719
01:03:26,910 --> 01:03:31,130
And especially during very complex projects like this in tough times, there's this curious.

720
01:03:31,130 --> 01:03:37,290
Well, we have any kind of sense of any of the interested parties that speak at closer to this or yeah, that's

721
01:03:37,290 --> 01:03:44,110
Absolutely, I mean, so this is, you know, part of the reason why we're doing this contractor outreach, you know,

722
01:03:44,170 --> 01:03:45,130
two or so far.

723
01:03:45,850 --> 01:03:46,710
Second, sorry.

724
01:03:46,870 --> 01:03:49,910
I thought it was pretty good that you had two tours so far going through, you know.

725
01:03:50,170 --> 01:03:51,510
Yeah, and that's hard.

726
01:03:51,670 --> 01:04:00,670
I mean, not to, you know, that's a, you know, that's a two firms who have toured the facility, you know,

727
01:04:00,670 --> 01:04:05,030
certainly have expressed their interest and desire to prepare their bids.

728
01:04:06,470 --> 01:04:09,910
So, obviously, I can't, we're not going to hold their feet to the fire here.

729
01:04:09,930 --> 01:04:11,970
You have to know what's going to happen. You never know, right?

730
01:04:13,270 --> 01:04:16,690
But, you know, the reason why we do this outreach is to make sure that we do have

731
01:04:16,690 --> 01:04:22,970
bids. And, you know, I think that that scenario is very low.

732
01:04:24,050 --> 01:04:29,090
But, whatever we can do to help encourage that competitive bit of an environment we will.

733
01:04:31,150 --> 01:04:32,350
Thank you.

734
01:04:32,350 --> 01:04:34,510
Thank you.

735
01:04:34,510 --> 01:04:34,770
Thank you.

736
01:04:34,810 --> 01:04:35,070
Thank you, risk.

737
01:04:36,270 --> 01:04:36,970
Thank you.

738
01:04:37,150 --> 01:04:37,650
Thank you.

739
01:04:39,800 --> 01:04:41,480
Then we move on to item number 7B.

740
01:04:42,200 --> 01:04:47,120
You can see the text roll generated revenues for a cap for information and the presentation

741
01:04:47,120 --> 01:04:48,060
by Mesa.

742
01:04:49,320 --> 01:04:53,880
So we have one letter but we'll wait on that till we have the presentation.

743
01:04:57,920 --> 01:04:58,520
Sorry.

744
01:04:59,660 --> 01:05:06,980
So this is something that we've talked about at a committee level, and I believe we talked

745
01:05:06,980 --> 01:05:07,900
about it last year.

746
01:05:08,060 --> 01:05:11,760
We did talk about it last board meeting on the financial update for CAP.

747
01:05:13,240 --> 01:05:17,680
We've done a little bit of work analyzing it, and so Mesa is going to talk about it.

748
01:05:17,740 --> 01:05:23,500
We still have a lot further to go, but you'll see where we're at.

749
01:05:26,980 --> 01:05:27,280
All right.

750
01:05:27,420 --> 01:05:29,080
You can just go to the first line.

751
01:05:30,580 --> 01:05:35,980
So just a quick overview, as Bob mentioned, we're planning on having a series of presentations

752
01:05:35,980 --> 01:05:36,600
here.

753
01:05:36,900 --> 01:05:41,600
So this first one will be a bit high level, and then in subsequent presentations we'll

754
01:05:41,600 --> 01:05:42,940
go into more of the details.

755
01:05:44,060 --> 01:05:49,820
But we're going to touch on the different church collection mechanisms, some of the challenges

756
01:05:49,820 --> 01:05:54,140
it just a high level and we'll get into more details later on that, some of the benefits

757
01:05:54,140 --> 01:06:00,800
to consider, and then we want to bring up outreach expectations and timeline as well, so if

758
01:06:00,800 --> 01:06:07,700
you'll go to the first slide, Bob, so what we're going to do is present two different ways

759
01:06:07,700 --> 01:06:15,180
we can recover costs associated with CAP, and through a series of meetings we're going to

760
01:06:15,180 --> 01:06:20,740
provide you information on the impacts and considerations for these two different methods so that

761
01:06:20,740 --> 01:06:26,920
eventually we could ask you to make a decision. That will be several meetings away. So again,

762
01:06:27,060 --> 01:06:32,520
this is just going to be an introduction into these decision points. So what we're considering here

763
01:06:32,520 --> 01:06:41,080
is we can either recover cap expenses through putting charges on customer property tax bills or

764
01:06:41,080 --> 01:06:47,600
water bills. And so for both these methods we're talking about having a charge based on

765
01:06:47,600 --> 01:06:52,040
So it would be essentially be a fixed charge either way, it's just where it's that appear.

766
01:06:53,520 --> 01:07:01,020
And for both of these approaches, we would need to go through a property team process and update our existing financial and cost of service model.

767
01:07:01,300 --> 01:07:06,360
So it will be a fairly comprehensive process no matter which method we go with.

768
01:07:06,620 --> 01:07:15,480
We can also consider having a combination of these two approaches where we have some charges collected through the tax roll and some through customer bills.

769
01:07:16,280 --> 01:07:24,280
So I'll go into the details a little bit on this view, proceed Bob, you can go to the next one.

770
01:07:25,760 --> 01:07:36,140
So I want to give just sort of a high level overview of how we would calculate the charge that would appear on a property tax bill.

771
01:07:36,620 --> 01:07:44,480
And again, these are not final numbers, but I want to give you a sense of just how it should be done to have some idea of what it would look like.

772
01:07:44,480 --> 01:07:55,560
So, the thing to consider here is that that total cost shown the 4.3 million, what we're talking about with this approach would be that would be cap debt and

773
01:07:55,560 --> 01:08:03,160
operation and maintenance, and then the coverage ratio baked into that too. So we're essentially putting all pieces of cap into that cost.

774
01:08:03,160 --> 01:08:14,100
And what you do is we have capacity ratios there, which are set by a WWA, and we use those to scale our charges two different meter sizes.

775
01:08:14,580 --> 01:08:19,340
So we take the capacity ratios, that's the middle column there of the table on the right.

776
01:08:20,160 --> 01:08:28,820
The count of meter sizes at each meter size, and we use that to determine the meter equivalents, so that right hand column there.

777
01:08:29,260 --> 01:08:32,420
So we know how many total meter equivalents we have.

778
01:08:32,420 --> 01:08:43,080
And that allows us to divide that total charge so we get a per unit, and that means per meter unit, in this case, not dwelling unit charge.

779
01:08:43,280 --> 01:08:53,460
So you can see if the total cost is about 4.3 million and we have about 7700 meter equivalents, the charge per unit per meter unit would be about $560.

780
01:08:54,580 --> 01:08:59,500
And again, not final numbers, but I want to give you a sense of what this would look like and how it would work.

781
01:08:59,500 --> 01:09:04,700
So if you go to the next slide, we can see how that plays out for each meter size.

782
01:09:05,440 --> 01:09:11,280
So you can see it's a pretty wide range if you look at that right-hand column of the bottom table of charges.

783
01:09:12,140 --> 01:09:22,020
So a three-quarter inch charge, you know, if you're a resonance with a three-quarter inch meter, your charge would be $560 split over your two property tax bills.

784
01:09:23,000 --> 01:09:25,860
And the charge increases significantly with different meter sizes.

785
01:09:25,860 --> 01:09:31,880
And I'm going to talk a bit more about that as we go in terms of considerations around

786
01:09:31,880 --> 01:09:35,200
these charges, especially for those larger meter sizes.

787
01:09:36,520 --> 01:09:42,480
But that's essentially how we would go about the approach of determining the charges if

788
01:09:42,480 --> 01:09:45,760
they were to appear on the property tax bill.

789
01:09:46,680 --> 01:09:48,520
So you can go to the next one.

790
01:09:49,220 --> 01:09:51,400
So if we put a quick question, of course.

791
01:09:51,400 --> 01:09:55,200
If I have two meters, I'll get two charges, five meters, I'll get five.

792
01:09:56,060 --> 01:09:56,180
Next.

793
01:09:58,560 --> 01:10:00,460
And I, sorry, another naive question.

794
01:10:01,000 --> 01:10:04,360
The prepongence of meters is in the smaller range, right?

795
01:10:04,600 --> 01:10:07,380
I mean, the bell curve is kind of shifted to the above.

796
01:10:07,720 --> 01:10:08,160
Absolutely.

797
01:10:08,280 --> 01:10:12,160
There are only a handful of meters at that four inch and six inch size.

798
01:10:12,220 --> 01:10:20,580
There are quite a few two inch meters, but the majority would be, we have like a lot of residences

799
01:10:20,580 --> 01:10:26,700
in that three-quarter-in-train, commercial and residential, in the three-quarter, one, one-and-a-half,

800
01:10:26,880 --> 01:10:32,020
you know, is more like commercial and ag, master meters, things like that, and then as you get

801
01:10:32,020 --> 01:10:37,780
farther up, it's, you know, there's some public authority accounts, large master meter, or large ag,

802
01:10:37,940 --> 01:10:42,840
but yeah, there's only maybe 10 between the four and the six-inch meters. It's a very small number.

803
01:10:43,240 --> 01:10:47,220
Yeah, because further we get down, we get to have the detail about that.

804
01:10:47,220 --> 01:10:50,120
Yeah, is that actually did I put that in the next slide?

805
01:10:51,600 --> 01:10:52,600
Uh, maybe I took it out.

806
01:10:52,820 --> 01:10:57,120
I think I had it when I presented to the committee, the actual counts, and I might have removed it.

807
01:10:57,320 --> 01:10:59,720
But I could definitely provide that in a future presentation.

808
01:10:59,900 --> 01:11:03,340
More than just curiosity, it will be probably formed part of the outreach.

809
01:11:04,160 --> 01:11:11,040
Yes, and as we, um, in future presentations, we want to get specific about what the expected impacts would be.

810
01:11:11,100 --> 01:11:16,660
And so then it will absolutely be important to understand who those customers are at each meter size.

811
01:11:18,060 --> 01:11:28,640
So if we put all those cap charges on the property tax bill, this is what our future water bill rate increases could look like.

812
01:11:28,960 --> 01:11:34,740
So we've already adopted a 7.5% charge for fiscal year 26.

813
01:11:34,860 --> 01:11:38,980
So this is showing we would only need to actually enact a 5% increase.

814
01:11:38,980 --> 01:11:46,620
And then we would not need to go through another prop to 18 process and raise rates again until you can see 2031.

815
01:11:47,520 --> 01:11:59,760
So again these numbers are not finalized but I think that gives a pretty good indication of what future water bills could look like if we go this route.

816
01:12:02,100 --> 01:12:04,320
So if you go to the next slide.

817
01:12:04,320 --> 01:12:14,760
So an alternative here would be if we put only the debt associated with cap on the tax roll and leave the rest on water bills.

818
01:12:15,880 --> 01:12:25,400
So if we go through the same approach for determining charges, you can see that number in the top right is 2.25 million rather than the 4.3.

819
01:12:25,400 --> 01:12:38,160
So that's the debt and the coverage ratio, not the operation and maintenance costs divided among the same number of meter equivalents, the charge is then $293 per meter unit rather than the 560.

820
01:12:38,980 --> 01:12:50,520
So you can see then in the table below each charge by meter size, they still do get significant at the 6 inch size hover there lower than the previous method.

821
01:12:51,360 --> 01:12:54,420
I don't know if they're about half, but they're significantly lower.

822
01:12:55,560 --> 01:13:20,720
However, remember, then there would be water bill increases as well with this method because you're breaking the charges up over the two, so yeah, so for this method you can see we would continue with the adopted seven and half percent increase for water bill rates and charges in fiscal year 26 and then we would expect a 2% increase each year after that.

823
01:13:20,720 --> 01:13:25,500
So that would be sort of baseline inflation expectations in terms of increases.

824
01:13:25,880 --> 01:13:30,920
We wouldn't be looking at future large increases, like additional 7.5% increases,

825
01:13:31,540 --> 01:13:35,320
but it's not the zero that we were seeing in the previous method.

826
01:13:35,740 --> 01:13:40,000
So you're just defining the charges up here between the two collection mechanisms.

827
01:13:42,420 --> 01:13:43,920
So you can go to the next one.

828
01:13:43,920 --> 01:13:49,700
So, if you, yeah, we can look here a little bit

829
01:13:49,700 --> 01:13:52,520
at how these different options compare in terms

830
01:13:52,520 --> 01:13:54,700
of the water bill increases.

831
01:13:55,680 --> 01:13:59,660
So, the top two rows are what I just went through.

832
01:14:00,280 --> 01:14:04,060
So, all cap, all cap costs on property tax bill

833
01:14:04,060 --> 01:14:07,560
or debt costs on property tax bill

834
01:14:07,560 --> 01:14:10,160
and the other costs on the water bills.

835
01:14:10,260 --> 01:14:11,260
That's the middle row.

836
01:14:11,420 --> 01:14:13,380
And then there's also a third row there,

837
01:14:13,380 --> 01:14:20,980
which I haven't talked about yet, which is if all cap costs were recovered through water bills rather than through the tax roll.

838
01:14:21,200 --> 01:14:26,620
So in that third row, there would be no cap costs were covered through tax bills.

839
01:14:26,720 --> 01:14:36,740
And you can see that we would need additional 7.5% rate increases most likely if all costs were through water bills and then 2% after that.

840
01:14:43,100 --> 01:14:52,160
Um, so I want to give some ideas of what these monetary impacts could look like, although I definitely want to caveat this as, um,

841
01:14:52,680 --> 01:14:59,900
different, not finalized numbers, and as you can see here from sort of a three columns on the left, we're picking out sort of specific.

842
01:15:00,000 --> 01:15:16,120
Customer types and characteristics. So, this is not representative of all of our customers. So, that top row, you can see is a three-quarter-hinge, single-family, residential customer, who uses about 10 units, 10 each CF a month.

843
01:15:16,580 --> 01:15:29,980
So, that is not representative of all single-family customers. So, we're assuming their current bills may be $150 and you can see the range that they could expect in terms of the increase across

844
01:15:29,980 --> 01:15:38,000
three methods. They're bill in 2032, so seven years from now could be between 170 or

845
01:15:38,000 --> 01:15:44,760
209 dollars. And you can see the same thing with a commercial customer. He uses about 15

846
01:15:44,760 --> 01:15:50,610
HCF and has a 1-inch meter. Again, it depends even where their base first peak.

847
01:15:51,860 --> 01:15:59,380
Divide is, but if they have a $200 bill currently, then it could be between 232 and $285 in

848
01:16:00,760 --> 01:16:06,520
So, this is just showing how those percentages that I showed on the previous side could play out.

849
01:16:07,760 --> 01:16:11,540
And, again, just for very specific examples of customers.

850
01:16:12,800 --> 01:16:15,460
Forgive me for digging in it. Could you go back one slide?

851
01:16:18,160 --> 01:16:23,460
And again, forgive me if I'm going to understand this, but it seems like the top line there.

852
01:16:23,460 --> 01:16:29,560
the first line, I would use the word front-end loaded that you're collecting the cost through

853
01:16:29,560 --> 01:16:37,620
the tax rolls much quicker than the other methods. 10, 0 increases required in those

854
01:16:37,620 --> 01:16:43,980
middle years. As you go down to the other alternative, the debt only method doesn't collect as much

855
01:16:43,980 --> 01:16:49,700
because you're only addressing the debt. I get that, but there's also a, there are 4 of,

856
01:16:50,420 --> 01:17:06,700
You know, a user charge that's going to be required, so you'd have a line theoretically dotted line underneath that showing the charge for the use, and then a last line, you're not front end loading it really at all.

857
01:17:06,700 --> 01:17:12,540
You're charging it all just based on use. Is that profile that front end loading tendency?

858
01:17:13,120 --> 01:17:19,080
Because you have a lot of users that aren't using water and they have meters.

859
01:17:20,040 --> 01:17:24,360
They would pay if they have a meter regardless of whether they're using it.

860
01:17:24,560 --> 01:17:26,200
Is that the dynamic of the front end loading?

861
01:17:27,420 --> 01:17:30,880
Well, the property tax charges would be every year.

862
01:17:31,560 --> 01:17:35,640
By front end loading, are you thinking that that's a one year charge?

863
01:17:35,640 --> 01:17:57,480
Yeah, I thought in the first, if maybe I'm just reading that, but you're getting a 5% increase on the, on the property taxes, and then 0 for the next four years, so this is a reflection on the water bill, so projected changes on the water bill, okay, and I mean to, I was, I was thinking of the,

864
01:18:00,000 --> 01:18:08,120
I was thinking that first line was all in property taxes, it is, but it's, it's, these percentages are,

865
01:18:08,140 --> 01:18:13,900
changes that would happen to the water bill itself. So if you're putting more on the tax bill

866
01:18:14,820 --> 01:18:19,120
it falls. I miss I miss Reddott. Yeah, thank you. What that helps?

867
01:18:20,200 --> 01:18:23,100
What I was going with that which will come up later is

868
01:18:24,200 --> 01:18:28,800
there's a I'm assuming intuitively there's a number of meters

869
01:18:29,500 --> 01:18:35,800
that are related to properties that aren't occupied and that's a growing number

870
01:18:35,800 --> 01:18:43,240
particularly residential properties. And if we don't put it through the meters, they're going to

871
01:18:43,240 --> 01:18:43,680
free ride.

872
01:18:46,210 --> 01:18:50,110
Is the field is the free. Well, if we don't put it on the property tax bill.

873
01:18:50,830 --> 01:18:54,110
Oh, like I said, if you put it. Yeah. Yeah. If we don't put it on the property tax bill.

874
01:18:54,830 --> 01:18:59,410
Exactly. It's on the fixed side of the meter as long as you have a meter. Right. Yeah. That's,

875
01:18:59,410 --> 01:19:04,090
that's where my, my naive, my naive today is coming through here. I'm just trying to figure out how,

876
01:19:04,090 --> 01:19:09,750
we assure because ultimately I think you got to do both. You got to have a mixed bag here to catch

877
01:19:09,750 --> 01:19:17,570
everybody. And I'm sensitive to the just by virtue of other experiences, you know, in the agencies

878
01:19:17,570 --> 01:19:26,410
that I'm supporting, I think there's a growing number of unoccupied properties or part-time if nothing else.

879
01:19:27,990 --> 01:19:29,030
Second homes.

880
01:19:29,050 --> 01:19:30,150
Second homes.

881
01:19:30,210 --> 01:19:30,990
Second homes.

882
01:19:30,990 --> 01:19:31,250
Second homes.

883
01:19:31,630 --> 01:19:32,770
You know.

884
01:19:32,770 --> 01:19:34,190
But aren't they going to pay anyway?

885
01:19:35,150 --> 01:19:36,110
I don't know.

886
01:19:36,230 --> 01:19:38,310
That's what I'm getting at.

887
01:19:38,770 --> 01:19:43,150
I think we got to have a mixed approach to catch everything else.

888
01:19:43,670 --> 01:19:43,930
Yeah.

889
01:19:44,170 --> 01:19:45,090
I'm getting ahead of you.

890
01:19:45,350 --> 01:19:53,710
And just I'll just mention that the ramp up, you know, what you're not seeing in this row is this ramp up that's occurring.

891
01:19:53,710 --> 01:19:59,470
and there's actually one year ahead of this in 25, in which we made it seven and a half of

892
01:19:59,470 --> 01:20:06,790
adjustment. So this whole ramp up is because we have to meet debt coverages before we get to the

893
01:20:06,790 --> 01:20:14,190
start-up of the project here in 2028. So this same revenue is being raised through the tax roll here

894
01:20:14,190 --> 01:20:18,970
and so she's not showing up on this. So that's what that ramp, that's what that front end loading.

895
01:20:18,970 --> 01:20:22,330
Yeah, I misread the chart, so thanks.

896
01:20:24,050 --> 01:20:29,170
But either, either, Patrick, I want to make sure that I understand what you're, your point

897
01:20:29,170 --> 01:20:34,930
in a way, but the houses that are vacant are part-timers and whatever they are.

898
01:20:35,550 --> 01:20:43,470
If we did all costs all the cap on their water bill, they still have a water bill, they still

899
01:20:43,470 --> 01:20:46,170
have to pay their water bill, whether they're part-time or not, right?

900
01:20:46,170 --> 01:20:49,330
as long as all the cab charges go on the fixed side of the fixed.

901
01:20:51,330 --> 01:20:51,630
Yes.

902
01:20:53,310 --> 01:20:54,270
Which thing?

903
01:20:57,310 --> 01:20:58,030
That's the current.

904
01:20:58,110 --> 01:20:58,670
That's the current.

905
01:20:58,970 --> 01:20:59,170
That's the current thinking right now.

906
01:20:59,210 --> 01:20:59,690
That's the current.

907
01:20:59,690 --> 01:21:00,290
Either way we go.

908
01:21:00,810 --> 01:21:02,810
That's the case that I just assumed it was.

909
01:21:02,910 --> 01:21:04,330
That understanding of which I didn't.

910
01:21:04,390 --> 01:21:05,170
The new clarification now.

911
01:21:05,230 --> 01:21:05,490
Thanks.

912
01:21:05,590 --> 01:21:07,490
Because I just assumed it would be.

913
01:21:07,970 --> 01:21:09,530
So then because back to my earlier point,

914
01:21:09,530 --> 01:21:11,590
either way they're going to pay,

915
01:21:11,690 --> 01:21:14,390
whether they're vacant or not,

916
01:21:14,390 --> 01:21:16,650
whether it's, they're still going to pay.

917
01:21:17,310 --> 01:21:17,350
OK.

918
01:21:17,530 --> 01:21:20,430
Yeah, I was, again, I think he was all used.

919
01:21:20,450 --> 01:21:21,450
It was always like used.

920
01:21:21,450 --> 01:21:22,430
No, no, no, no, no, no.

921
01:21:22,430 --> 01:21:24,730
No, no, no, no, thank you for clarifying.

922
01:21:24,930 --> 01:21:26,730
Because that's, so that was my point.

923
01:21:26,870 --> 01:21:28,950
Is it either way they're going to pay?

924
01:21:30,330 --> 01:21:33,510
Yeah, I mean, I get sorry, miss, I don't need to stick

925
01:21:33,510 --> 01:21:34,430
all of your privilege.

926
01:21:34,430 --> 01:21:37,350
I think the very first slide it says it's either way

927
01:21:37,350 --> 01:21:39,970
it's based for second slide.

928
01:21:40,330 --> 01:21:41,150
That says it's, yeah.

929
01:21:41,850 --> 01:21:44,010
I'm sorry, I'm looking for the sample water

930
01:21:45,330 --> 01:21:48,230
Oh, that's farther down, I think.

931
01:21:48,410 --> 01:21:49,070
Oh, here we go.

932
01:21:49,310 --> 01:21:51,850
And I think of it as we're producing a water supply here.

933
01:21:51,910 --> 01:21:53,650
We're not actually producing water to distribute.

934
01:21:54,190 --> 01:21:56,750
And those are the two ways of the business that are different.

935
01:21:57,350 --> 01:22:02,210
And you have here values of, you know, water use.

936
01:22:02,250 --> 01:22:05,750
But that really doesn't affect the cap portion of the revenue need.

937
01:22:06,190 --> 01:22:09,130
It's affecting other parts of the water bill.

938
01:22:09,130 --> 01:22:12,690
Because there are water rates and so they do have an impact.

939
01:22:12,690 --> 01:22:16,530
but they're not related to the revenue we need for CAP.

940
01:22:17,430 --> 01:22:20,770
Yeah, the purpose of the HCF numbers on there

941
01:22:20,770 --> 01:22:22,890
is just to characterize the type of user

942
01:22:22,890 --> 01:22:26,010
that we're talking about in a relation to a typical bill amount.

943
01:22:34,400 --> 01:22:34,880
What's next?

944
01:22:36,020 --> 01:22:40,940
Right, so we just talked about potential financial implications

945
01:22:41,480 --> 01:22:43,520
of changes in water bills.

946
01:22:44,100 --> 01:22:47,700
So then I also want to touch on the property tax charges.

947
01:22:47,700 --> 01:22:54,700
So these are the two different methods that we've been talking about, these are the numbers that I showed on the previous slide.

948
01:22:54,900 --> 01:22:57,180
I've just showed them side by side here.

949
01:22:57,840 --> 01:23:00,460
Oh, and there's the meter count column as well.

950
01:23:00,880 --> 01:23:06,760
So yeah, you can see at the 4-inch and 6-inch meter size, a total of 11 accounts.

951
01:23:09,200 --> 01:23:15,520
And so this is just showing a comparison of the charge amount between the two different methods at the different meter size.

952
01:23:15,520 --> 01:23:18,700
Again, keeping in mind these are not finalized numbers.

953
01:23:22,340 --> 01:23:23,160
You can continue.

954
01:23:23,840 --> 01:23:25,220
Yeah, I'll just one, I'm sorry.

955
01:23:25,400 --> 01:23:27,220
One more comment on the six inch.

956
01:23:27,220 --> 01:23:32,760
Most of these are mobile and parks that have a master

957
01:23:32,760 --> 01:23:37,100
meter that have 100 plus units to divide this cost up.

958
01:23:37,240 --> 01:23:41,080
So it does look worse from if you're thinking of it

959
01:23:41,080 --> 01:23:44,340
as a single meter, but these are really multi-family

960
01:23:44,340 --> 01:23:52,260
residential is one institutional customer, one institutional customer one industrial customer

961
01:23:52,260 --> 01:23:58,340
on the six inch too. And so does that divide out like in a meter equivalency

962
01:23:59,180 --> 01:24:05,320
faction or like if I'm in a mobile home park is my burden the same as like single

963
01:24:05,320 --> 01:24:10,320
family residents or would it be okay? Well you so or maybe less I think yeah. Yeah I mean it

964
01:24:10,320 --> 01:24:14,100
depends on how many units are behind the meter in terms of how it gets divided up to individual

965
01:24:14,100 --> 01:24:19,980
units, but the purpose of the meter-requivalency approach is that yes, it's equal for everyone

966
01:24:19,980 --> 01:24:22,160
to regardless of your meter size.

967
01:24:30,310 --> 01:24:35,010
So the same way that we looked at potential impacts of changes

968
01:24:35,010 --> 01:24:41,330
in water bills, this is potential impacts related to the property tax bills. And again, I want to

969
01:24:41,330 --> 01:24:48,810
call out that this is a subset of customers. We're looking at a particular examples here. So you can

970
01:24:48,810 --> 01:24:55,470
the first row is a single family residence with a three-quarter inch meter and we're thinking

971
01:24:55,470 --> 01:25:02,950
their property tax bill is about $12,000. So depending on the two methods that we're considering,

972
01:25:03,350 --> 01:25:09,410
they might see a two to five percent increase in their property tax bill against split over the

973
01:25:09,410 --> 01:25:15,730
two bills. It's the same approach for the other free rows that we're looking at. You can see

974
01:25:15,730 --> 01:25:19,070
I think this is true really with all our customer classes.

975
01:25:19,610 --> 01:25:25,090
There's likely a very large variation in those property tax bills within each of these

976
01:25:25,090 --> 01:25:26,070
customer classes.

977
01:25:26,730 --> 01:25:32,110
So you can see the commercial and agricultural to the examples that I've chosen, their property

978
01:25:32,110 --> 01:25:35,170
tax bills are actually pretty similar to the residential example.

979
01:25:35,770 --> 01:25:40,710
However, that probably isn't true for all of the customers within that class, right?

980
01:25:40,730 --> 01:25:45,450
There's probably a huge variation in those customers and what their property tax

981
01:25:45,450 --> 01:25:50,290
spell is based on what their parcel looks like and how it's developed in the value of it.

982
01:25:50,970 --> 01:25:56,950
So keep that in mind when reviewing the impacts here and considering this table, this

983
01:25:56,950 --> 01:26:02,910
is just an initial review of what a couple of impacts could look like.

984
01:26:03,490 --> 01:26:09,450
We'll get into the details of this more in subsequent presentations and I'll also get into

985
01:26:09,450 --> 01:26:14,070
some of the details of why we can't give you exact numbers right now because there are

986
01:26:14,070 --> 01:26:17,470
applications, and this analysis that we'll have to work through.

987
01:26:23,760 --> 01:26:27,920
And so yeah, I just wanted to touch on the fact that the large meters,

988
01:26:29,980 --> 01:26:30,960
those do look

989
01:26:30,960 --> 01:26:36,160
like very high charges, however, the characteristics of those accounts are very different

990
01:26:36,160 --> 01:26:39,760
than an individual residence or even an individual business.

991
01:26:40,540 --> 01:26:47,820
These tend to be maybe a master meter mobile home park that has 100 or more units behind

992
01:26:47,820 --> 01:26:54,840
it. There's a very large school campground, very large agricultural properties. These are very

993
01:26:54,840 --> 01:27:00,720
different customers when thinking about how they compare to like a single family resident

994
01:27:00,720 --> 01:27:06,480
in their individual business. So we will have to work through a couple examples to figure out

995
01:27:06,480 --> 01:27:15,840
whether those property tax values and debt-only method values make sense when we start investigating

996
01:27:15,840 --> 01:27:21,200
who these customers are and what their property taxes are to consider whether the numbers that

997
01:27:21,200 --> 01:27:25,900
you're seeing there are a significant impact or not, but I wouldn't come to that conclusion

998
01:27:25,900 --> 01:27:28,920
just based on seeing high numbers there.

999
01:27:33,000 --> 01:27:35,020
Okay, so yeah, let's talk about the challenges a little

1000
01:27:35,020 --> 01:27:41,040
bit. So I know that we've come across this in many of the other analyses that we've done,

1001
01:27:41,620 --> 01:27:46,360
but you have to remember when we're talking about the property tax, the bill approach that is

1002
01:27:46,360 --> 01:27:52,820
based on your parcel, right, and we know that we have many parcels where there are multiple

1003
01:27:52,820 --> 01:27:56,740
meters associated with that parcel, especially when you're thinking about those larger

1004
01:27:56,740 --> 01:28:04,320
meters, where maybe you have an HOA that is responsible for many of the resonances and

1005
01:28:04,320 --> 01:28:08,460
then you have a landscape meter and it can, it's not necessarily obvious how you should

1006
01:28:08,460 --> 01:28:13,980
divide that charge among the different meters when you're trying to say you have a total

1007
01:28:13,980 --> 01:28:18,920
property tax value, how do I then divide that among the meters in terms of applying the

1008
01:28:18,920 --> 01:28:23,560
charges and figuring out whether this is going to be a significant impact to those users

1009
01:28:23,560 --> 01:28:29,020
or not? So that's something that we're going to have to work through. We do have some insights into

1010
01:28:29,020 --> 01:28:36,400
that based on the exercises that we've gone through with CAP, or not CAP. I'm sorry, the GSA,

1011
01:28:37,380 --> 01:28:43,540
however, that's been focused on agricultural customers. So there is a lot that will have to work

1012
01:28:43,540 --> 01:28:46,300
through for our master meter customers,

1013
01:28:47,560 --> 01:28:51,280
but we do have some ideas about methods that we could apply

1014
01:28:51,280 --> 01:28:54,540
to figure that out, but it will take some work

1015
01:28:54,540 --> 01:28:56,180
and some staff time.

1016
01:28:59,400 --> 01:29:01,060
Another issue we're going to have to work

1017
01:29:01,060 --> 01:29:03,900
through is that, as we started looking

1018
01:29:03,900 --> 01:29:07,980
at those larger meters and who they are,

1019
01:29:08,200 --> 01:29:12,100
we noticed that we can't just take the assess

1020
01:29:12,100 --> 01:29:23,560
value of those parcels to determine whether the amounts that we're looking at would be a significant impact because we see exemptions that bring down that value.

1021
01:29:24,240 --> 01:29:34,540
So we just have to think about what is the right number for us to use when thinking about the impacts of that parcel when comparing their property tax bill to the potential increase that we're talking about.

1022
01:29:34,540 --> 01:29:37,180
something that will investigate further.

1023
01:29:42,660 --> 01:29:45,380
And then just again touching on the fact that we need to

1024
01:29:45,380 --> 01:29:50,080
look into whether these numbers are an impact or not.

1025
01:29:50,080 --> 01:29:51,120
Thank you, backwards, no.

1026
01:29:51,300 --> 01:29:58,260
No, you're good. I had that slide multiple phases. So the benefits of each approach that I'll just

1027
01:29:58,260 --> 01:29:59,380
touch on quickly.

1028
01:30:01,000 --> 01:30:08,380
So, having cap on the tax bills does have a couple of benefits that I want to talk about.

1029
01:30:09,460 --> 01:30:28,720
So, it's a smaller impact. In a way when you think about it, the percentage increase that we're expecting, you know, if you're residents, that two to five percent increase on your tax bill versus, you know, several years of seven and a half or even two percent on your water bill, it can feel like a smaller increase there.

1030
01:30:29,500 --> 01:30:35,040
Also, we have to remember that we often hear from our customers that there were water bills

1031
01:30:35,040 --> 01:30:35,780
are really complicated.

1032
01:30:35,960 --> 01:30:41,360
They have several fixed charges on there already, adding in other fixed charge and complicating

1033
01:30:41,360 --> 01:30:45,840
water bills more is definitely, it's something we can do, but I think we have to really

1034
01:30:45,840 --> 01:30:51,220
think about how customers would interpret that and how it would affect their ability to understand

1035
01:30:51,220 --> 01:30:52,380
their water bill.

1036
01:30:53,140 --> 01:30:57,490
And sort of the same idea there, we also hear from many customers, especially during times of

1037
01:30:57,490 --> 01:31:01,290
out that they feel like even if they reduce their water usage, they don't see a reduction in

1038
01:31:01,290 --> 01:31:06,330
their water bill because there are so many fixed charges. So adding a new fixed charge could

1039
01:31:06,330 --> 01:31:11,570
further exacerbate that existing problem. So I think we just want to be very cognizant of those

1040
01:31:11,570 --> 01:31:18,290
things as potential benefits to having any charges on the tax bill rather than water bills.

1041
01:31:20,090 --> 01:31:27,950
can go ahead, Bob. However, of course, this was sort of touched on earlier if we have the

1042
01:31:27,950 --> 01:31:32,610
charges on water bills instead then we are keeping the charges all in place and we don't

1043
01:31:32,610 --> 01:31:37,390
have necessarily transparency concerns, although as I'll talk about in a couple of slides we

1044
01:31:37,390 --> 01:31:41,970
do want to do a lot of public outreach, but of course that's something that people could point out.

1045
01:31:42,210 --> 01:31:45,810
We don't want people to feel like we're trying to hide these charges by putting them somewhere else.

1046
01:31:46,450 --> 01:32:01,750
Also, of course, if it's on the water bill, then you could say the direct beneficiary at the time is paying rather than having it on the property bill where the person who lives there might not be the same as the person who owns or pays the property bill.

1047
01:32:03,150 --> 01:32:04,190
That's it.

1048
01:32:04,390 --> 01:32:05,670
Can go ahead.

1049
01:32:06,650 --> 01:32:07,390
So outreach.

1050
01:32:07,950 --> 01:32:09,990
There's a lot of text on this slide,

1051
01:32:10,130 --> 01:32:11,970
but all it's really saying is that

1052
01:32:12,370 --> 01:32:14,750
we plan through the rest of this year,

1053
01:32:14,850 --> 01:32:16,650
the rest of this calendar year,

1054
01:32:17,070 --> 01:32:17,990
to conduct outreach.

1055
01:32:18,270 --> 01:32:19,870
We want to make sure people understand

1056
01:32:19,870 --> 01:32:22,030
what it is that we're proposing,

1057
01:32:22,930 --> 01:32:23,930
so they feel that it's,

1058
01:32:24,610 --> 01:32:26,050
you know, we're being transparent,

1059
01:32:26,430 --> 01:32:27,950
but also so that they can provide feedback

1060
01:32:27,950 --> 01:32:29,510
and identify any additional issues

1061
01:32:29,510 --> 01:32:36,210
or complication so we may not have considered. So we're baking in a lot of time to get and consider

1062
01:32:36,210 --> 01:32:41,870
that feedback and part of the way that we're going to solicit that is by telling people to

1063
01:32:41,870 --> 01:32:47,750
come to board meetings and provide their input and we're expecting to do that through bill inserts,

1064
01:32:48,810 --> 01:32:55,130
you know, posting on social media, sort of all of our usual outreach mechanisms and we'll have

1065
01:32:55,130 --> 01:32:59,130
a more detailed outreach plan that we'll share with you.

1066
01:33:00,230 --> 01:33:01,410
You can go to the next time.

1067
01:33:03,470 --> 01:33:04,150
Okay, timeline.

1068
01:33:05,410 --> 01:33:08,010
So we basically have this calendar year.

1069
01:33:08,430 --> 01:33:19,630
We're the next couple meetings I want to continue talking with all of you about the methods for this approach and work through some of these details that I've mentioned.

1070
01:33:20,090 --> 01:33:26,490
And then we would really have the bulk of this year to just get input from people and part of the reason for that is because

1071
01:33:26,490 --> 01:33:33,230
If we were to move forward with this, we wouldn't engage in a proctor 18 method until spring

1072
01:33:33,230 --> 01:33:34,030
of next year.

1073
01:33:34,370 --> 01:33:38,550
So we might as well fill that intermediate time with public outreach.

1074
01:33:39,630 --> 01:33:44,970
So that it would be April of next year when we would go through the proctor 18 process and

1075
01:33:44,970 --> 01:33:50,190
then June when we would actually adopt these charges that we've been talking about.

1076
01:33:52,150 --> 01:33:53,430
I think that's it.

1077
01:33:53,430 --> 01:34:13,890
I do want to flash back to the previous board meeting, let's see here, and just pop up a graph that has some relation to this.

1078
01:34:13,890 --> 01:34:14,590
The revenue?

1079
01:34:16,110 --> 01:34:16,430
Yeah.

1080
01:34:16,890 --> 01:34:18,110
That's what I was thinking about.

1081
01:34:19,590 --> 01:34:20,230
Sorry.

1082
01:34:21,650 --> 01:34:29,450
So this was presented on the 8th and as you call it, we went through the final outlook.

1083
01:34:31,010 --> 01:34:38,670
And one of the things in the staff report that we talk about is, you know, these higher levels,

1084
01:34:39,370 --> 01:34:45,090
so the oranges that capped at, but these higher levels of existing debt kind of derived

1085
01:34:45,090 --> 01:34:54,850
this cost for short periods, so for seven years here. And then in 2036, it starts to decline

1086
01:34:54,850 --> 01:34:59,810
because these, these debt starts to drop off and then in 2037 it really declines.

1087
01:34:59,930 --> 01:35:05,350
Pauli you weren't here and I do want to go over this with you, but this concept of the

1088
01:35:05,350 --> 01:35:14,730
tax rule is meant to bridge this period, not so much beyond that. So in other words, we would

1089
01:35:14,730 --> 01:35:25,930
start ramping up to 2029 and then maintain that tax rule charge throughout 2036 and then

1090
01:35:25,930 --> 01:35:33,750
2037 we'll remove it. And this has an interesting messaging benefit in that we can really

1091
01:35:33,750 --> 01:35:40,070
in our outreach kind of describe that you know it's going to be painful for a while and we're

1092
01:35:40,070 --> 01:35:44,990
this only for seven years and then we're going to remove this charge and then we'll have

1093
01:35:44,990 --> 01:35:51,350
a project that has benefits for 50 years beyond that and so from my perspective it has

1094
01:35:51,350 --> 01:35:57,470
a really good message that you know you're going to feel some pain for a little while and

1095
01:35:57,470 --> 01:36:02,010
then beyond that we're going to get the benefits for 50 years.

1096
01:36:02,700 --> 01:36:08,510
One of the other things that I showed was this long term chart so this is 2037 and this

1097
01:36:08,510 --> 01:36:17,250
where we are right now. And these are, you know, these are revenues based on whatever method.

1098
01:36:17,410 --> 01:36:24,210
So if we click, this doesn't necessarily look at the two different methods, but this is the revenue

1099
01:36:24,210 --> 01:36:29,090
we need, whether it's coming through the tax roll or through the, through the water bill.

1100
01:36:29,870 --> 01:36:35,270
But what happens is this ramp up period that you saw that was, if it's all in the water bill,

1101
01:36:35,270 --> 01:36:46,910
7%, 7%, 7%, 7%, 7%, 7%, 7%, but then it sort of softens right here in 2028 or 2029.

1102
01:36:48,430 --> 01:36:55,230
And if you look at this from an inflation adjusted standpoint in 2025 dollars, you can

1103
01:36:55,230 --> 01:36:56,530
really see what's happening here.

1104
01:36:56,970 --> 01:37:02,110
We're raising money for the first four years, we're raising revenues, trying to get them

1105
01:37:02,110 --> 01:37:09,170
to the target and then once we get there we're basically just staying up with inflation so it's

1106
01:37:09,170 --> 01:37:15,710
kind of flat when you look at it in 2020 but five dollars but then what happens in 2037 is we actually

1107
01:37:17,530 --> 01:37:25,010
the other costs have have risen over time and but the debt drops off and so you end up back

1108
01:37:25,010 --> 01:37:28,970
Pretty close. It's hard to see on here, but pretty close to where we were

1109
01:37:31,450 --> 01:37:34,990
$25 in 2037. So

1110
01:37:34,990 --> 01:37:37,210
So that's that's the story

1111
01:37:40,220 --> 01:37:40,660
I

1112
01:37:41,840 --> 01:37:44,700
I guess we can talk about later. I just

1113
01:37:45,260 --> 01:37:52,500
Tonight I would just say it seems like again either way. They're gonna pay and so I would be looking to keep it is

1114
01:37:52,500 --> 01:37:59,300
it straight forward as possible. Yes, the bills are confusing. Yes, the fixed side is confusing,

1115
01:37:59,680 --> 01:38:04,300
that I also think that I've always been in a chapter of the fixed side. I think it's good

1116
01:38:04,300 --> 01:38:10,200
it is fair. And so I know we'll no more on it, and that's why we can certainly prove to be

1117
01:38:10,200 --> 01:38:15,160
I'll be where I'm run. It just seems to put it all on the water bills, so everybody knows what

1118
01:38:15,160 --> 01:38:19,860
they're paying the money. Because if you, if you, if the hybrid approach seems like it could be

1119
01:38:19,860 --> 01:38:30,900
And if you put it all on me, on the property tax, then why would we do that if you just put it on the water bill?

1120
01:38:34,010 --> 01:38:34,750
I don't know.

1121
01:38:34,810 --> 01:38:35,110
We're not.

1122
01:38:35,450 --> 01:38:35,970
We're not.

1123
01:38:35,970 --> 01:38:36,150
We're not.

1124
01:38:36,630 --> 01:38:39,930
We should be in danger.

1125
01:38:40,070 --> 01:38:40,710
I'll give you my feedback.

1126
01:38:41,730 --> 01:38:44,230
I'm just, I don't, I don't quite get even.

1127
01:38:44,310 --> 01:38:46,670
Can talk about it later, I guess, because I wasn't here in the last week.

1128
01:38:48,110 --> 01:38:52,650
Yeah, the point of discussing it today is to get,

1129
01:38:52,650 --> 01:38:58,470
feedback so if you have feedback yeah we we're interested all on the water

1130
01:38:58,470 --> 01:39:04,230
bill but I look forward to hearing war yeah so if you want feedback yeah I

1131
01:39:04,230 --> 01:39:08,310
think it's it's it's odd it strikes me as the exact opposite or trying to do a

1132
01:39:08,310 --> 01:39:12,470
GSA right we're trying to move from a tax based approach to metering and now

1133
01:39:12,470 --> 01:39:14,870
trying to get away from meters and you know to a tax based approach and I think

1134
01:39:14,870 --> 01:39:22,630
we're going to run into some of similar problems with you know what if I want to

1135
01:39:22,630 --> 01:39:30,570
tax users. I do, while it's not the intention, I think it is just trying to hide the cost,

1136
01:39:30,790 --> 01:39:35,050
right? We're trying to defer the monthly annoyance of having my water bill be high and saying,

1137
01:39:35,250 --> 01:39:38,990
oh, well, I'll only see it kind of once and might pay attention to it twice a year and then

1138
01:39:38,990 --> 01:39:44,790
hopefully forget about it. And it does seem to kind of confuse it even more. I know our

1139
01:39:44,790 --> 01:39:52,530
structures confusing, but this just adds a whole other layer to it. It seems like, um, so, yeah,

1140
01:39:52,650 --> 01:39:58,690
I don't know that I've seen a great benefit presented on it just other than it makes your water

1141
01:39:58,690 --> 01:40:04,370
bill a little less monthly and makes your property tax plug a lot. Um, but yeah, that's my thought.

1142
01:40:04,490 --> 01:40:10,520
He said it better than me. All right, but I'm sorry. Go ahead, Patrick. I was just saying I'll say

1143
01:40:10,520 --> 01:40:17,040
more poorly than all of you, but just to be clear by point earlier was that I really believe

1144
01:40:17,040 --> 01:40:22,520
there's a growing population, excuse me, a growing population of non-resident property owners.

1145
01:40:24,400 --> 01:40:30,540
And I put in that category property owners with meters, and I just want to be sure that we're

1146
01:40:30,540 --> 01:40:39,140
thinking about equity. The sense of unit users that may be different than property owners,

1147
01:40:39,140 --> 01:40:44,240
and I don't pretend to know that nuance and I'm sure there's statistics we can take out to figure that one out.

1148
01:40:44,540 --> 01:40:45,600
But that's my point.

1149
01:40:46,620 --> 01:40:49,760
The other thing that dawned on me is there's two presentations.

1150
01:40:50,480 --> 01:40:54,400
There's two schedules of activity that are,

1151
01:40:54,940 --> 01:40:58,160
but basically represent pain to the community.

1152
01:40:58,340 --> 01:41:01,200
One is the disruption from the infrastructure,

1153
01:41:04,000 --> 01:41:05,840
and the second is the pain from the cost.

1154
01:41:06,480 --> 01:41:12,060
So I think intuitively I would think they put those things as close together as you can.

1155
01:41:13,280 --> 01:41:26,300
It will make sense to the community more so than disrupting the environment and their commute to work and their properties and trenching and all those things and then making them pay later.

1156
01:41:26,920 --> 01:41:29,340
I don't think people would kind of get that.

1157
01:41:29,860 --> 01:41:31,600
So that's just a thought to consider.

1158
01:41:31,760 --> 01:41:53,830
And the last point I would make is I don't pretend to understand this when either is the benefits of this overall cat project uniform to all of the users is there is a more benefit to others and not in your comment mat made me think of that is that this is really not a distribution plan.

1159
01:41:54,390 --> 01:41:55,890
It's a storage plan.

1160
01:41:55,890 --> 01:42:02,430
So, who benefits from storage is, is it uniform? Everybody does the same or is it different?

1161
01:42:03,590 --> 01:42:06,970
And I don't pretend to know the answer to that question, but that might also inform.

1162
01:42:08,190 --> 01:42:09,850
How do you go about these rate things?

1163
01:42:10,610 --> 01:42:13,650
Well, I'd be bothered to state water. I would also put it in the property text bill.

1164
01:42:13,850 --> 01:42:16,830
I'm sure if it is same reason because it was a huge capital expense.

1165
01:42:18,070 --> 01:42:22,090
It was not put on the property. I was putting the water bill.

1166
01:42:22,430 --> 01:42:24,170
Really? I always felt it should have been.

1167
01:42:24,170 --> 01:42:30,310
Yeah, and so we're kind of facing the same question you're I I supported I really like the idea of it on the property tax bill

1168
01:42:30,310 --> 01:42:33,710
So so do I I don't want to money to water, but that

1169
01:42:33,710 --> 01:42:39,350
$20 million or clear well should be at a profit tax bill too, but you know

1170
01:42:39,350 --> 01:42:42,070
Yeah, but I'll tell you why it's because

1171
01:42:43,590 --> 01:42:45,770
Injecting water and drug and water has a universal

1172
01:42:46,730 --> 01:42:52,590
benefit that lasts for years and it's for decades. I mean it depends on when we extract it

1173
01:42:52,590 --> 01:43:04,870
We decide not to extract it, wet your dryers, but if we put it on the bill, the person who's there that day pays, whereas you put it on the proper text bill and the owners who have an enduring equity in the valley pay.

1174
01:43:05,270 --> 01:43:07,730
And I think that's where the benefit of this project lies.

1175
01:43:11,370 --> 01:43:14,730
And you always did things you could say, why should I put it on the...

1176
01:43:14,730 --> 01:43:16,390
I do want to...

1177
01:43:16,390 --> 01:43:18,190
I'm still waiting for all the information.

1178
01:43:20,390 --> 01:43:31,090
I do want to just say that the cost of service analysis that has to be done is not going

1179
01:43:31,090 --> 01:43:37,150
to be based on whether someone is an absentee owner or it's not going to take that into consideration

1180
01:43:38,470 --> 01:43:46,230
or it's not going to change based on like the GSA where you're going to make the comment

1181
01:43:46,230 --> 01:43:48,650
that we're going from an estimate to a meter.

1182
01:43:49,410 --> 01:43:52,090
It's always going to be based on the meter, whether we're

1183
01:43:52,090 --> 01:43:54,850
collecting it through the water bill or the tax rule,

1184
01:43:55,090 --> 01:43:56,110
it's the same charge.

1185
01:43:56,590 --> 01:43:58,110
Same people are going to get the charge.

1186
01:43:58,630 --> 01:44:01,650
So there's really no differences just the method in which we're

1187
01:44:01,650 --> 01:44:02,970
collecting that revenue.

1188
01:44:04,830 --> 01:44:09,610
And so much like Matt said, and I think one of the other

1189
01:44:09,610 --> 01:44:12,410
reasons to do this, not that we're hiding it,

1190
01:44:12,410 --> 01:44:17,130
but there is a psychological impact

1191
01:44:17,130 --> 01:44:19,830
to seeing your expecting a water bill

1192
01:44:19,830 --> 01:44:22,070
to be something and seeing it much higher.

1193
01:44:22,770 --> 01:44:25,890
Whereas I think there's a less of an impact

1194
01:44:25,890 --> 01:44:27,730
when you look at your property bill

1195
01:44:27,730 --> 01:44:32,750
and you say, yeah, my house is worth 1.6 million dollars

1196
01:44:32,750 --> 01:44:36,650
and I just got an extra $250, $250, $250, $180 a year

1197
01:44:36,650 --> 01:44:38,510
and my, is that bad?

1198
01:44:38,650 --> 01:44:40,170
I mean, it kind of gives you a perspective

1199
01:44:40,170 --> 01:44:46,570
of the value of the project in terms of the property values and the value.

1200
01:44:48,090 --> 01:44:52,530
Well, I would just say there is a little difference in who will pay the bill because we

1201
01:44:53,670 --> 01:44:59,130
have corporations that buy houses all over and rent them as a business investment.

1202
01:45:00,000 --> 01:45:10,760
We have, you know, 10, 10, it's versus owner. Yes, yes, yes, non-resident property, and yes, again, I think the equity this project lies more with the land than it does with your water bill.

1203
01:45:14,180 --> 01:45:14,660
Agreed.

1204
01:45:14,780 --> 01:45:17,080
I will read into the record.

1205
01:45:17,640 --> 01:45:27,560
At least a portion of the comment from Will Carlson referring to the method that we just presented. I believe this is a terrible idea.

1206
01:45:27,560 --> 01:45:34,180
this is being used currently for the GSA. Many taxpayers still don't know they're being

1207
01:45:34,180 --> 01:45:38,740
billed with this method. Most never look at their itemized portion of their tax bill.

1208
01:45:39,660 --> 01:45:46,900
Many I have spoken with were surprised to find this among the other many items on their tax bill.

1209
01:45:47,640 --> 01:45:54,600
It should be clearly visible to the repairs. What the cost is for? It should be

1210
01:45:54,600 --> 01:46:00,320
clear to rate pairs that this is a necessary and valuable step taken on their behalf.

1211
01:46:01,160 --> 01:46:06,700
CVWD should also identify steps it is taking to mitigate these costs, EGA, hiring

1212
01:46:06,700 --> 01:46:08,780
free or other cost saving measures.

1213
01:46:09,840 --> 01:46:16,680
We need to sell the necessity of the and value of this cap program, not hide the cost in

1214
01:46:17,180 --> 01:46:21,100
the tax in the rate pairs tax bill, because that's a little grunt.

1215
01:46:21,100 --> 01:46:27,760
And I think that to speak to his comments, I think that's what all this outreach for the next year is all about.

1216
01:46:27,780 --> 01:46:28,220
Exactly.

1217
01:46:32,200 --> 01:46:32,380
Okay.

1218
01:46:33,100 --> 01:46:33,800
Any more questions?

1219
01:46:34,100 --> 01:46:35,240
Are we good?

1220
01:46:35,580 --> 01:46:39,040
Then we move on to item number 7C.

1221
01:46:39,580 --> 01:46:44,320
Consider what a supply impact fee from information and presentation by Mason.

1222
01:46:51,060 --> 01:46:52,440
I'm sleeping on the screen.

1223
01:46:52,440 --> 01:46:53,640
I'm sleeping on the wheel here.

1224
01:46:53,640 --> 01:47:11,000
This is something that we've been working towards with the allocation that we've just recently adopted and the water intensification methodology that we just adopted.

1225
01:47:11,340 --> 01:47:20,660
So now this is kind of the final piece of that work in that we're looking at what would be an impact fee for an intensification.

1226
01:47:20,660 --> 01:47:23,340
And so with that, I'll give it a word, and me, so.

1227
01:47:23,780 --> 01:47:32,940
OK, so I want to start by talking about supply reliability and get a little bit of background

1228
01:47:32,940 --> 01:47:37,400
to sort of set the scene for why we're talking about an impact fee here.

1229
01:47:37,880 --> 01:47:41,820
So we understand why it would be useful and necessary.

1230
01:47:42,920 --> 01:47:49,720
And then we can go into sort of options for addressing that reliability stress and how the

1231
01:47:49,720 --> 01:47:56,620
impact fee, then fits into it, and then another outreach piece to consider, and one

1232
01:47:56,620 --> 01:47:58,400
of the timing of that would occur.

1233
01:48:00,120 --> 01:48:01,400
So, feel good at the first line.

1234
01:48:02,460 --> 01:48:05,300
So you've seen versions of this graph in the past.

1235
01:48:05,440 --> 01:48:12,100
What we're looking at here is customer demand in times of extended drought.

1236
01:48:12,280 --> 01:48:16,620
So that's why that bar is kind of high, I think it's about 4,200 in your feet.

1237
01:48:17,640 --> 01:48:20,560
So less than we would expect a normal or wet conditions.

1238
01:48:21,740 --> 01:48:27,480
And the shaded red portion there is showing the portion of that demand, which is

1239
01:48:27,480 --> 01:48:33,160
rescind vulnerable, in times of extended drought, meaning it might be difficult to get sufficient

1240
01:48:33,160 --> 01:48:38,800
supply to actually serve those customers so in the past, you know, we had to go purchase supplemental

1241
01:48:38,800 --> 01:48:46,380
water, would be an example. And so the graph on the bar on the left is the current demand, and then

1242
01:48:46,380 --> 01:48:54,140
On the right that blue bar shows proposed development as an additional stress on that existing

1243
01:48:56,420 --> 01:49:01,600
potentially difficult to meet need that you can see in that rate-chated portion.

1244
01:49:03,740 --> 01:49:09,020
We want to talk about this a little bit if you go to the next slide.

1245
01:49:10,200 --> 01:49:14,080
I think we all know climate is becoming more variable.

1246
01:49:14,280 --> 01:49:18,260
We're seeing these extremes right of wet and dry periods.

1247
01:49:18,840 --> 01:49:23,500
As you can see in this graph, the state water project is a great example of this.

1248
01:49:23,540 --> 01:49:28,720
It's becoming more difficult to actually get delivery of our allocation there.

1249
01:49:28,940 --> 01:49:34,500
So if we're thinking about how we're meeting that customer need in those extended drought periods,

1250
01:49:34,500 --> 01:49:49,080
It's going to become more difficult to meet that need and more expensive, so we can't necessarily rely on state water project water as a bucket of water to pull from in that extended drought.

1251
01:49:49,860 --> 01:49:55,020
So we need to start thinking about how else can we manage and address that.

1252
01:49:55,020 --> 01:50:00,000
And that's not even to consider the other stresses to other portions of our supply,

1253
01:50:00,280 --> 01:50:06,200
like potential stresses on coutumo or groundwater or just reductions in precipitation

1254
01:50:06,200 --> 01:50:07,980
or increased variability in precipitation.

1255
01:50:12,510 --> 01:50:16,290
So we have a couple of different mechanisms to address this, right?

1256
01:50:16,870 --> 01:50:22,270
So we can, of course, think about supply management, which maybe we would call things like groundwater

1257
01:50:22,270 --> 01:50:28,390
baking and making sure we're really smart about what supply we're taking when so that, you

1258
01:50:28,390 --> 01:50:34,350
out of time that allows us to maybe then bank or store or surplus water when it occurred.

1259
01:50:34,950 --> 01:50:38,430
However, there are definitely costs associated with that, ground water banking could be

1260
01:50:38,430 --> 01:50:43,850
very expensive. Also, just do graphically at this point. We don't even know that there are

1261
01:50:43,850 --> 01:50:49,130
options that could work for us. So supply management, you know, it's definitely something to

1262
01:50:49,130 --> 01:50:53,090
consider and to look into and to build in our portfolio, but what an necessarily address

1263
01:50:53,090 --> 01:50:55,990
that red shaded portion of the bar in full.

1264
01:50:56,770 --> 01:51:00,350
Another option is supply augmentation, so we could talk about something like cap.

1265
01:51:01,030 --> 01:51:05,350
Also would be expensive, but retaining local control there could be really beneficial.

1266
01:51:06,610 --> 01:51:07,970
So that's one avenue to consider.

1267
01:51:08,190 --> 01:51:14,530
The third would be demand management, which makes a lot of sense that we continue to pursue.

1268
01:51:14,570 --> 01:51:22,230
However, it's very unlikely to provide a reduction in demand of that full red-chorded shaded portion

1269
01:51:22,230 --> 01:51:30,190
of that bar. So we're still left with this question if we need to identify how we want to bolster

1270
01:51:30,190 --> 01:51:35,910
reliability for that portion of demand and then of course what it's going to cost and how

1271
01:51:35,910 --> 01:51:44,450
we want to go about recovering those costs. So one thing to think about is that there's sort of

1272
01:51:44,450 --> 01:51:51,770
two different challenges that we're trying to address here how to bolster reliability for those

1273
01:51:51,770 --> 01:51:55,470
existing customers and then also for that blue bar portion.

1274
01:51:55,810 --> 01:51:58,570
So additional demand outside of what we see currently.

1275
01:51:59,690 --> 01:52:04,890
And so one thing that we could do is no matter which of those options from the previous

1276
01:52:04,890 --> 01:52:11,190
slide we go with, we need to recover those costs somehow so we can make sure that we

1277
01:52:11,190 --> 01:52:20,130
tie new demand that increased blue bar portion of demand to whatever mechanism we choose and make

1278
01:52:20,130 --> 01:52:25,030
that they are paying their fair share when they're adding stress to a stress-to-system.

1279
01:52:25,770 --> 01:52:29,230
So the way we could do that is through what we're calling an impact fee.

1280
01:52:29,910 --> 01:52:34,690
So we could come with a up with a few amount and tie it to a particular project and then say,

1281
01:52:34,770 --> 01:52:41,190
okay, this is the amount that you would pay if you are adding new demand to the system.

1282
01:52:42,590 --> 01:52:48,570
And just to sort of tie things together a little bit, so we've previously discussed intensification

1283
01:52:48,570 --> 01:52:54,250
and allocations. So this is a third term to think about. So the way I would tie them together

1284
01:52:54,250 --> 01:53:01,170
is that allocations are a baseline. Intensification is increased demand above that baseline.

1285
01:53:01,250 --> 01:53:05,210
And again, we're focusing on, like, significant land exchanges and significant

1286
01:53:05,210 --> 01:53:11,490
exchanges and demand there. And then the impact fee could be the dollar amount that we're

1287
01:53:11,490 --> 01:53:15,950
tying to that intensification. So the dollar amount associated with the acre of feet.

1288
01:53:16,950 --> 01:53:33,170
And so we'll, as we continue through this process, we'll get into more of the details of what that number that dollar number would look like and what the nexus would be in terms of the benefit that's being provided in the actual project that that's tied to.

1289
01:53:33,170 --> 01:53:54,610
So if you continue to the next slide, so how we could actually collect that impact fee would be through our intent to serve process, so whenever there is a development or redevelopment project, it has to come to the district and ask for an intent to serve letter, so essentially a letter saying that we have sufficient water supply to serve that project.

1290
01:53:55,730 --> 01:54:09,390
We review those as we talked about when we're viewing the intensification methodology, there are many projects which would not trigger the intensification review and therefore not even be part of this water supply impact fee discussion.

1291
01:54:10,010 --> 01:54:15,770
However, the projects that do trigger review and it could be subject to this impact fee.

1292
01:54:16,210 --> 01:54:20,670
What we could do is we could issue them their intent to serve letter with conditions.

1293
01:54:20,670 --> 01:54:29,890
So we already have letters with conditions so this could be one line a condition in that letter saying essentially that at the end of the project

1294
01:54:29,890 --> 01:54:32,890
We would be requiring them to pay the impact fee

1295
01:54:33,190 --> 01:54:36,210
So then they'd go and do their project on the end of the project

1296
01:54:36,770 --> 01:54:42,410
We would tie collection of that impact fee to some mechanism like potentially installation of meters

1297
01:54:43,650 --> 01:54:49,930
Which is to be figured out but there would be some collection mechanism at the end of the project where we collect the impact fee

1298
01:54:52,840 --> 01:55:00,360
So, this is something that we definitely want to talk to people about and get their input on.

1299
01:55:00,980 --> 01:55:10,060
Same thing as the other public outreach methods that we've talked about, we'll use a variety of online and print messaging system.

1300
01:55:10,280 --> 01:55:17,480
So, we're trying to make aware as many customers as possible and we will again ask them to come to board meetings and provide input.

1301
01:55:17,480 --> 01:55:23,020
we're also thinking of opening up a public comment form online so that people could

1302
01:55:23,020 --> 01:55:27,220
make comments online and that we could review them and decide whether there's things that

1303
01:55:27,220 --> 01:55:32,840
we should build into our methodology there. So if you go to the next slide, I think it's time

1304
01:55:32,840 --> 01:55:40,360
line. Yeah, so we'll have a couple of meetings where we talk more of the details about the

1305
01:55:40,360 --> 01:55:46,960
the fee itself and what the amount would be and how it would be determined will then have

1306
01:55:46,960 --> 01:55:51,060
a public comment period where people can submit information.

1307
01:55:51,320 --> 01:55:56,000
We would then review those comments, potentially integrate them, and then show you the

1308
01:55:56,000 --> 01:55:56,440
documents.

1309
01:55:56,780 --> 01:56:04,260
As I mentioned at the previous meeting, they'll be likely an ordinance and then also a document

1310
01:56:04,260 --> 01:56:13,200
that had information about the basis of the fee and the access and just a little bit more context

1311
01:56:13,200 --> 01:56:20,040
than is in ordinance and then asking for adoption in May. However, I want to caveat this timeline

1312
01:56:20,040 --> 01:56:25,320
with the fact that we've just talked about several other ongoing projects and needs for outreach.

1313
01:56:25,600 --> 01:56:29,840
So this is of course subject to change if when we put these all together, we then decide

1314
01:56:29,840 --> 01:56:33,920
that things need to move around a little bit so that people can actually understand the message

1315
01:56:33,920 --> 01:56:38,520
that is we're trying to convey to them. I think that's all I have on the

1316
01:56:38,520 --> 01:56:39,620
impact to you at this point.

1317
01:56:42,110 --> 01:56:46,790
Any questions? I would I would definitely do the

1318
01:56:47,530 --> 01:56:51,130
the the comment through the district website. I would definitely add that

1319
01:56:51,130 --> 01:56:54,630
make try to make that user friendly because we just get so little feedback as it is.

1320
01:56:56,250 --> 01:57:00,630
Yeah. Thank you. I like to make one comment because I'm on both sides of this

1321
01:57:00,630 --> 01:57:03,990
equation, but let's still here, right?

1322
01:57:05,210 --> 01:57:12,470
So during the drought, it became very apparent that the egg mainly avocados

1323
01:57:13,490 --> 01:57:17,190
pulled an extra 2008 feet of water, because there was no rain.

1324
01:57:19,330 --> 01:57:24,450
So our residences, all of us cut back, but as farmers, use more.

1325
01:57:24,450 --> 01:57:29,630
So should we have an impact fee for during the drought for us farmers?

1326
01:57:31,310 --> 01:57:31,810
I'm just,

1327
01:57:34,040 --> 01:57:43,580
you know, I'm just saying, but shock me was that during the drought, we got to take care of our orchards.

1328
01:57:44,740 --> 01:57:46,060
But I mean, it takes water.

1329
01:57:46,980 --> 01:57:51,320
And I got the feeling once we started getting these meters on these wells.

1330
01:57:51,540 --> 01:57:53,520
I think we're going to be, well, not surprised.

1331
01:57:53,520 --> 01:57:55,480
But I think we're going to have a pretty accurate picture

1332
01:57:55,480 --> 01:57:57,160
who is using what.

1333
01:57:57,520 --> 01:57:58,520
So it is.

1334
01:57:59,280 --> 01:57:59,380
Yeah.

1335
01:58:01,360 --> 01:58:04,660
And when we did the allocations we looked at,

1336
01:58:04,660 --> 01:58:06,460
we had a thing called,

1337
01:58:07,160 --> 01:58:11,020
what was the well estimate the demand offset

1338
01:58:11,020 --> 01:58:14,580
or the demand ever go with?

1339
01:58:14,920 --> 01:58:16,780
We've very between several terms I don't remember.

1340
01:58:16,780 --> 01:58:17,880
I don't remember what the term was.

1341
01:58:18,060 --> 01:58:20,780
But we looked at agricultural use of groundwater.

1342
01:58:20,780 --> 01:58:29,080
not as a we need to charge for this it was really so that we could understand the overall

1343
01:58:29,080 --> 01:58:31,240
water demand and the valley.

1344
01:58:33,560 --> 01:58:37,460
The GSA fee is really designed to recover cost for the management

1345
01:58:37,460 --> 01:58:43,440
of the groundwater basin so that's in a way the GSA fee is a similar fee to this impact fee

1346
01:58:44,380 --> 01:58:49,560
but targeted towards the groundwater users so that they are paying for the management of the

1347
01:58:49,560 --> 01:59:07,160
And part of that will be, you know, meters and sort of working with the users of the basin to try to make sure that the, you know, when we, when the basins in trouble, we don't continue to pump like we have maybe in the past.

1348
01:59:10,440 --> 01:59:15,180
The impact fee is targeted towards new development or changes in land use, right?

1349
01:59:15,180 --> 01:59:18,760
So the impact fee is really focused on.

1350
01:59:19,140 --> 01:59:21,980
We allocated the water, we have across all

1351
01:59:21,980 --> 01:59:24,360
of the parcels of the district.

1352
01:59:26,060 --> 01:59:28,980
So we have that as a starting point.

1353
01:59:29,560 --> 01:59:32,260
Now, someone who comes along and says, well, I want to put

1354
01:59:32,860 --> 01:59:36,020
where this parcel used to be one commercial building,

1355
01:59:36,200 --> 01:59:38,780
I'm going to put 50 units on it.

1356
01:59:39,300 --> 01:59:43,940
That's a definite intensification of water use on that parcel.

1357
01:59:43,940 --> 01:59:53,740
And so what we're trying to do with the impact fee is, say, well, you know, this is adding on top of what we've already allocated our water.

1358
01:59:54,400 --> 01:59:58,740
This is adding on enforcing us to go and look for new water.

1359
02:00:00,000 --> 02:00:10,460
The cost of that is then borne by that person or developer that's actually doing the development in intense fire.

1360
02:00:10,860 --> 02:00:22,820
I support the intensification fee, the part that shocked me was during the drought, the homeowner's cut back, and his farmers use more.

1361
02:00:22,820 --> 02:00:28,900
And, you know, it's not all bad that the fact that we got the room for 40,000 acre feet of water in our groundwater basin.

1362
02:00:29,800 --> 02:00:31,480
Hey, that's by water cheap and fill it back up.

1363
02:00:31,920 --> 02:00:37,780
Yeah, and I mean, you know, trying not to look rearwards too much.

1364
02:00:38,540 --> 02:00:42,840
What we're under Sigma, we're looking forward and saying, how are we going to manage this in the future?

1365
02:00:42,940 --> 02:00:50,100
Because we know during droughts, not only does a farmer have to make up for the water that they're not getting from rain,

1366
02:00:51,080 --> 02:00:57,780
There are, you know, there are pumping all of that water and not only that, but there's no rain retarging the water.

1367
02:00:59,300 --> 02:01:01,620
Can I just, I understand a little bit.

1368
02:01:02,560 --> 02:01:08,580
So like with that intensification fee, we put like a pool and hey, we're the 100 acre feet short this year.

1369
02:01:08,600 --> 02:01:11,840
We're going to go buy settlement or what would like the actual like execution of that.

1370
02:01:11,840 --> 02:01:15,320
Yeah, I mean, it definitely will require, so during the cost of service,

1371
02:01:15,320 --> 02:01:21,500
you want to make some decisions on how we'll manage those funds. Could be that it's a fund that

1372
02:01:21,500 --> 02:01:26,960
pre-pays debt on the cap project. If the cap project is moving forward, if not the cap project,

1373
02:01:27,360 --> 02:01:32,860
then it could be a fund that's a sinking fund for supplemental water supply or something like that.

1374
02:01:34,600 --> 02:01:39,380
And then just so I'm real clear, that top little blue line was that just like 200-acre feeders,

1375
02:01:39,560 --> 02:01:45,200
that shunner is that like the red line's overlaying that whole bump on the chart with the blue and the red

1376
02:01:45,200 --> 02:01:50,160
ash. Is that just into the red. So all the red and then the blue on top of it. Okay.

1377
02:01:50,480 --> 02:01:55,500
Yes. Yeah. And then this demand is actually underneath this red, this redness, the area.

1378
02:01:55,920 --> 02:02:02,200
So when we go into a stage two or three, this is what we're doing is we're trying to manage this

1379
02:02:02,200 --> 02:02:06,320
on supply and water.

1380
02:02:06,580 --> 02:02:08,120
All right, but now you brought it back.

1381
02:02:08,560 --> 02:02:12,380
What surprised me is, there's about, well,

1382
02:02:13,500 --> 02:02:17,920
maybe 800 acre feet more water used during drought,

1383
02:02:18,120 --> 02:02:19,860
but me know that possibly,

1384
02:02:23,200 --> 02:02:24,500
avocado's some nursery,

1385
02:02:24,980 --> 02:02:26,700
carbon nursery doesn't change much,

1386
02:02:26,800 --> 02:02:29,680
but they could use 2,000 acre feet, so that,

1387
02:02:29,680 --> 02:02:33,760
It doesn't include groundwater pumped out of the base and through private wells.

1388
02:02:33,860 --> 02:02:37,180
This is only the water districts, water supply.

1389
02:02:38,880 --> 02:02:40,240
Well, that's why you pay your fair share.

1390
02:02:40,760 --> 02:02:40,920
What?

1391
02:02:41,000 --> 02:02:42,440
We did have a drought surcharge also.

1392
02:02:43,800 --> 02:02:43,900
Okay.

1393
02:02:44,140 --> 02:02:44,780
We did have a drought.

1394
02:02:44,780 --> 02:02:45,160
All shut up.

1395
02:02:45,160 --> 02:02:46,340
As the stage is going.

1396
02:02:46,880 --> 02:02:47,140
Right.

1397
02:02:47,600 --> 02:02:53,500
But that's, you know, the point was the GSA is being managed and actually, I disagree with

1398
02:02:53,500 --> 02:03:01,680
Bill Karthlin, I think right now what we're doing with the meters on the wells is the only fairway

1399
02:03:01,680 --> 02:03:07,060
to assess that, so we'll need to come back and have the discussion.

1400
02:03:07,320 --> 02:03:08,720
You should be there too.

1401
02:03:10,930 --> 02:03:11,530
Do I?

1402
02:03:12,030 --> 02:03:12,450
Go for it.

1403
02:03:12,650 --> 02:03:13,070
Go for it.

1404
02:03:13,210 --> 02:03:13,250
Yeah.

1405
02:03:13,570 --> 02:03:14,370
It's very good.

1406
02:03:14,930 --> 02:03:17,390
Quickly, and I don't.

1407
02:03:17,510 --> 02:03:18,330
It's got the undercar.

1408
02:03:18,430 --> 02:03:23,050
I don't pretend to have the answers, but I would like to make two observations.

1409
02:03:23,050 --> 02:03:29,070
one is with regard to the CAP project, it can be looked at sort of as an insurance policy.

1410
02:03:29,750 --> 02:03:34,590
And some people are going to benefit more from that insurance policy than others, but that's

1411
02:03:34,590 --> 02:03:40,130
what we're looking at is something for the future that will assure a better water supply.

1412
02:03:40,710 --> 02:03:50,890
I would also make a similar comparison with your example case of the orchards and a drought.

1413
02:03:50,890 --> 02:04:00,310
There is precedent for a customer-based residential base of actually deciding to support

1414
02:04:00,310 --> 02:04:08,070
agriculture because they see the benefit of the open space and the green space and that sort of thing.

1415
02:04:08,290 --> 02:04:15,210
And I would add to that with the idea of insurance that those orchards, especially during a drought,

1416
02:04:15,210 --> 02:04:21,510
stop wildfire fires or slow them way down and people are beginning to recognize that more

1417
02:04:21,510 --> 02:04:30,470
and more. So that benefit may be seen by the community as a cost they're willing to help

1418
02:04:30,470 --> 02:04:35,150
subsidize to keep those orchards there. Just one more thing.

1419
02:04:35,170 --> 02:04:36,890
No, that's why we asked you to step up.

1420
02:04:37,390 --> 02:04:43,130
Well, but also, and this is my personal opinion. I've only lived here for about five years.

1421
02:04:43,130 --> 02:04:49,210
So I've seen a few things happen in a couple of wildfires, but the bottom line is, I don't

1422
02:04:49,210 --> 02:04:55,850
think 50 years from now, we're going to have Katuma or State Water, but we will have Cap,

1423
02:04:56,110 --> 02:05:01,010
we will have Injection, if you can buy one of cheaper, if you can, and we need to also work

1424
02:05:01,010 --> 02:05:02,350
on the recharge in the valley.

1425
02:05:03,230 --> 02:05:10,350
So I mean, then that would keep our cost of water lower than anybody else in the first

1426
02:05:10,350 --> 02:05:11,110
will be.

1427
02:05:11,610 --> 02:05:12,110
Anybody else?

1428
02:05:12,110 --> 02:05:17,290
Just the last comment I'd encourage you to maybe talk to community development department if you haven't

1429
02:05:17,290 --> 02:05:23,290
about reach in their understanding of, you know, the response to development impact fees.

1430
02:05:23,510 --> 02:05:29,130
I mean, there's, that is a very standard thing and, you know, covers other costs,

1431
02:05:29,490 --> 02:05:35,410
then what we're talking about, but, you know, learned from the pain that the city goes through.

1432
02:05:36,990 --> 02:05:37,730
Thank you, Mesa.

1433
02:05:40,910 --> 02:05:45,230
Okay, I had a speakers slip for this item.

1434
02:05:45,670 --> 02:05:46,390
Go for a charity.

1435
02:05:46,930 --> 02:05:47,690
My time now.

1436
02:05:47,950 --> 02:05:48,270
Oh, thank you.

1437
02:05:48,310 --> 02:05:49,230
Now is your time.

1438
02:05:49,230 --> 02:05:50,310
I'll shut up.

1439
02:05:50,750 --> 02:05:53,070
Some of my questions were answered.

1440
02:05:54,670 --> 02:05:56,390
And it's what we hear a lot.

1441
02:05:56,630 --> 02:06:07,710
When we go out in the public and they're discussing new developments that increase the pressure on water and how can we pay for this?

1442
02:06:07,710 --> 02:06:31,450
and what are we going to do. So, you know, so a lot of my questions were already addressed here and I have, there's two points that we need to look at is, you know, how, if you want to do an impact

1443
02:06:31,450 --> 02:06:54,510
which we have to do and I think everybody agrees for new projects, increased pressure on the water and it says here it will be configured according to the water reliability project which provides the water.

1444
02:06:55,130 --> 02:07:04,330
Now, you know, so what, I guess the water reliability project that we're looking at now, which is very expensive is a cap project.

1445
02:07:04,990 --> 02:07:14,230
You know, so if you have a big apartment complex, it's going to put, you know, I don't know, a thousand acre feed a year extra pressure than what was there before

1446
02:07:14,230 --> 02:07:24,430
are is there impact be going to be $4,500 times a thousand, which is what the CAP project

1447
02:07:24,430 --> 02:07:31,290
costs us, or it's going to be hard to figure it when you don't know, you might have to go

1448
02:07:31,290 --> 02:07:41,910
on the open market and buy water from Santa Maria or something, so that was one question I

1449
02:07:41,910 --> 02:07:47,190
and thank you for all your work and we have to work this out and figure it out and but also

1450
02:07:47,930 --> 02:07:54,090
don't really I don't see how I agree with case basically I don't know how you can really rely

1451
02:07:54,090 --> 02:08:04,410
on the cap project for a long-term drought any kind of security insurance policy because you are

1452
02:08:04,410 --> 02:08:10,630
putting and taking you are putting a thousand acre feet in you're taking it out and it's you know

1453
02:08:10,630 --> 02:08:15,470
It's very expensive so you have to do that and then it'll take away from the cost of your

1454
02:08:15,470 --> 02:08:21,410
coutumo water wherever else you get it, which, you know, Bob is really a master and very

1455
02:08:21,410 --> 02:08:23,090
experienced in juggling this.

1456
02:08:26,050 --> 02:08:30,410
But, you know, it's going to help with our reliability but not long

1457
02:08:30,410 --> 02:08:35,250
term as far as as far as I can see. So I guess,

1458
02:08:37,360 --> 02:08:39,240
oh yeah, and the other question you already answered,

1459
02:08:39,240 --> 02:08:44,040
that I was going to ask is after we collect these impact fees, what we're going to do with the money.

1460
02:08:44,800 --> 02:08:53,680
And that's going to be a counter for you answer that question and it'll maybe be used to pay down the debt of the cap,

1461
02:08:54,700 --> 02:09:03,660
which then that would make the cap even if the cap is started before new people come, they can so pay down that debt.

1462
02:09:03,820 --> 02:09:06,400
So that sounds like a good idea.

1463
02:09:06,400 --> 02:09:07,180
So,

1464
02:09:09,260 --> 02:09:23,940
I guess, yeah, I guess, do you have any comments about how we can, how can we put a charge on water reliability projects as they come, come down the road?

1465
02:09:24,000 --> 02:09:25,560
I guess that's my question.

1466
02:09:26,870 --> 02:09:35,990
through the chair. So just at first I'll start with just kind of clarifying that we're only

1467
02:09:35,990 --> 02:09:40,570
talking about the capital portion of the cap projects. So in other words,

1468
02:09:42,670 --> 02:09:43,590
I think the net

1469
02:09:43,590 --> 02:09:50,150
$42 million of capital costs that will go into the cap is the,

1470
02:09:54,090 --> 02:09:55,510
you know, if we were going to use

1471
02:09:55,510 --> 02:10:05,650
You know, the 42 million divided by a thousand acre feet come up with, you know, 4,200 or 42,000 per acre foot.

1472
02:10:05,970 --> 02:10:14,530
And so the real numbers that we're seeing of some of the larger projects are on the order of, you know, 20 to 30 acre feet.

1473
02:10:15,010 --> 02:10:24,630
So nothing like a thousand acre feet would, you know, if we did have just, you know, a gigantic development that increased by a thousand acre feet.

1474
02:10:24,630 --> 02:10:31,870
You're right, what we would end up doing is just dividing or we just basically pay the whole project on that development.

1475
02:10:33,670 --> 02:10:38,390
Although there might be some issues with that from a cost nexus standpoint.

1476
02:10:38,770 --> 02:10:42,570
So those are things that we need to work out and understand.

1477
02:10:43,310 --> 02:10:50,630
One of the complications of this is that if a development occurs, they pay an impact,

1478
02:10:50,630 --> 02:10:58,250
where I'm sorry, intensification fee, and then the people that move into that development

1479
02:10:58,250 --> 02:11:05,210
start paying the water builder on the tax roll, the charges that we have in debt repayment,

1480
02:11:06,070 --> 02:11:11,550
we can kind of wrap around the axle a little bit in terms of double paying. So we need

1481
02:11:11,550 --> 02:11:15,730
to understand clearly kind of how to work that and make sure that we're not collecting

1482
02:11:15,730 --> 02:11:16,350
twice.

1483
02:11:19,050 --> 02:11:26,150
And so it's not as straightforward as it is because they only pay it once. And

1484
02:11:26,150 --> 02:11:31,550
it's going to be, you know, felt, you know, forever.

1485
02:11:31,770 --> 02:11:36,570
Exactly. We only pay for the construction of the cap once. And so that's kind of the idea

1486
02:11:36,570 --> 02:11:43,610
by that. But what we are going to pay for is the debt related, you know, all customers are going

1487
02:11:43,610 --> 02:11:50,350
pay for is the debt related to cap and so that is tied to the capital cost so that that's

1488
02:11:50,350 --> 02:11:54,830
where I'm saying it's a little bit tricky we have to look at kind of if there's a changing

1489
02:11:54,830 --> 02:12:06,110
rate as you go through time perhaps that may be one mechanism so in terms of whether the cap

1490
02:12:06,110 --> 02:12:10,090
will change the outlook of reliability.

1491
02:12:11,230 --> 02:12:15,430
We are doing modeling with Westwater to look at what

1492
02:12:15,650 --> 02:12:22,210
the impact of cap is over time through the model 50-year period.

1493
02:12:24,270 --> 02:12:28,010
And the mechanism that is, for the preliminary modeling

1494
02:12:28,010 --> 02:12:32,530
that we've seen, the mechanism is that as you're

1495
02:12:32,530 --> 02:12:39,550
using cap more regularly what happens is other supplies start to build up, including, you

1496
02:12:39,550 --> 02:12:43,710
know, groundwater and storage, including some of the consumer water supplies, state water

1497
02:12:43,710 --> 02:12:52,890
supplies, which you can bank. And so there is a trickle effect or butterfly effect of using

1498
02:12:52,890 --> 02:12:57,110
cap consistently to all the other water supplies. So that's really-

1499
02:12:57,110 --> 02:13:02,410
I think so rather than use up your other water supplies, you don't actually have to be pumping

1500
02:13:02,410 --> 02:13:07,710
into the ground, you would just not use it and leave it in consumer or leave it in San Luis.

1501
02:13:08,210 --> 02:13:16,330
Exactly. But the only problem with that is, you know, how leave it in consumer no, the feds don't

1502
02:13:16,330 --> 02:13:22,570
want you to leave it in consumer. If you leave it for too long, they take it away. You donate it to the feds.

1503
02:13:24,010 --> 02:13:30,070
So, you know, that's why it's so important to think physicality, you know, you know,

1504
02:13:30,070 --> 02:13:36,210
or actually store physical water molecules, but I know you're on board with that, you're thinking

1505
02:13:36,210 --> 02:13:37,870
in the right direction.

1506
02:13:37,970 --> 02:13:41,270
And my other concern of course will be the cost of service model.

1507
02:13:42,590 --> 02:13:48,850
Fixed charges, you know, are fixed charges, and they can, you know, they can benefit.

1508
02:13:50,070 --> 02:13:55,010
They've been known to benefit the large water users more than the smaller ones.

1509
02:13:55,750 --> 02:13:59,090
It could, you know, it can change the, and it's really hard to tell.

1510
02:13:59,090 --> 02:14:05,030
you can't tell it by looking at what Maso really presented. Although I know she's going to look into it

1511
02:14:05,030 --> 02:14:13,510
further, as far as the classes of water that look at a typical water bill and this one

1512
02:14:13,510 --> 02:14:29,070
will increase by this percentage and that will increase by that percentage. It doesn't really

1513
02:14:29,070 --> 02:14:34,190
on this, so we won't get stuck with a lot of development with no water available.

1514
02:14:37,630 --> 02:14:38,810
Yep, good to hear for me.

1515
02:14:39,250 --> 02:14:39,630
Thank you.

1516
02:14:39,830 --> 02:14:40,310
Thank you very much.

1517
02:14:40,510 --> 02:14:40,990
Thanks, Charlie.

1518
02:14:41,930 --> 02:14:42,490
Thanks you.

1519
02:14:49,440 --> 02:14:55,580
Okay, then we go to item number 70, consider it a solution number 1165 updating the district

1520
02:14:55,580 --> 02:14:57,860
conflict of interest for action.

1521
02:15:00,000 --> 02:15:06,860
Similar to what we went over on the GSA, we're updating the conflict or the conflict of interest code.

1522
02:15:07,140 --> 02:15:10,040
I'm moving to the top resolution, 1, 1, 6, 5. I'll second.

1523
02:15:11,080 --> 02:15:13,160
We've got a motion to second. Any more discussion?

1524
02:15:13,720 --> 02:15:14,680
Roll call, please.

1525
02:15:15,640 --> 02:15:16,320
Dr. O'Connor.

1526
02:15:17,200 --> 02:15:17,780
Dr. Holcomb.

1527
02:15:18,500 --> 02:15:19,100
Dr. Bolt.

1528
02:15:19,860 --> 02:15:20,460
Dr. Robert.

1529
02:15:21,160 --> 02:15:21,860
Dr. Van Wiernan.

1530
02:15:22,700 --> 02:15:23,320
Motion passing.

1531
02:15:23,920 --> 02:15:29,280
Item number 7, e. Consider securing a D&O insurance cover as for district directors.

1532
02:15:29,280 --> 02:15:32,260
in officers for action bomb?

1533
02:15:33,620 --> 02:15:40,880
Yes, so Director O'Connor brought this up a number of weeks ago about securing some

1534
02:15:40,880 --> 02:15:51,600
D&O insurance, which is Director's officers insurance for boards and executive staff or officers on the board.

1535
02:15:53,820 --> 02:16:04,000
And we've got, we've kind of gone almost in a complete circle on trying to understand whether we're covered or whether we need coverage or where there are gaps.

1536
02:16:04,000 --> 02:16:27,500
And the JPI does, so let me back up, the directors and officers ensure it's covers the directors and their assets if they're sued for decisions and personal assets are included in that lawsuit.

1537
02:16:27,500 --> 02:16:35,740
So, all of that is covered in normal D&O insurance, that's the purpose of it is to try

1538
02:16:35,740 --> 02:16:45,760
to protect drug members and allow for people, talented people to come and join the board

1539
02:16:45,760 --> 02:16:50,460
without the fear of their personal assets being attacked for their decisions.

1540
02:16:52,240 --> 02:16:57,040
We checked with the Joint Powers Insurance Agency, and they have a thing called E&O,

1541
02:16:57,040 --> 02:17:04,520
errors in a mission, which is typically, it's an insurance that is typically used by

1542
02:17:04,520 --> 02:17:14,040
professional consultants, primarily architects, engineers, and they're like to protect

1543
02:17:14,040 --> 02:17:19,460
them from an error or mission on the plans that results into a construction claim.

1544
02:17:21,780 --> 02:17:31,860
And they buy that to protect their firms from, you know, if a suit is brought against them for some sort of construction defector design defect.

1545
02:17:33,880 --> 02:17:42,320
But for some reason, at the RJPIA, they call it Board of Directors Eres and omissions.

1546
02:17:42,320 --> 02:17:46,660
So it's sort of a conflation of DNO and ENO.

1547
02:17:47,400 --> 02:17:49,760
However, the description of coverage

1548
02:17:49,760 --> 02:17:54,080
says covers, directors, and officers

1549
02:17:56,020 --> 02:18:00,240
from lawsuits resulting from their official duties.

1550
02:18:01,140 --> 02:18:02,460
And then it makes an exception.

1551
02:18:04,100 --> 02:18:10,220
It doesn't cover fiduciary duties, which in this context

1552
02:18:10,220 --> 02:18:36,980
refers to managing of pensions and managing of a risk-a-type retirement funds, and so if there's a claim that the, for example, our 457B fund is mismanaged, this, what, what GPIA calls ENO does not cover, does not cover it.

1553
02:18:36,980 --> 02:18:44,580
So there's a special insurance coverage called Fidishary coverage, which we're planning on

1554
02:18:44,580 --> 02:18:54,520
investigating this further with our management consultant that manages our Arisa Fund to

1555
02:18:54,520 --> 02:18:58,780
find out okay, you know, who's at risk.

1556
02:18:59,040 --> 02:19:05,960
I understand that I think I am the one who is listed as the Fidishary for that fund, for

1557
02:19:05,960 --> 02:19:07,760
that investment.

1558
02:19:09,160 --> 02:19:13,380
And so I don't know that the board has exposure, but that's one of the things on my

1559
02:19:13,380 --> 02:19:15,060
list that I need to check out.

1560
02:19:16,460 --> 02:19:23,360
But in terms of our current understanding, the ENO insurance that JPI offers as part

1561
02:19:23,360 --> 02:19:34,720
of our pooled insurance does cover board activities and decisions up to, was it, 55 million.

1562
02:19:34,720 --> 02:19:38,700
So it's a large coverage, typically you see them at 10 million.

1563
02:19:38,960 --> 02:19:39,920
It's the limits of coverage.

1564
02:19:40,300 --> 02:19:43,780
I think 10, 20, or 10, single, 20 aggregate.

1565
02:19:46,280 --> 02:19:52,440
But I think we need a little bit of time to clarify this further because, as I said,

1566
02:19:52,700 --> 02:19:56,980
we sort of thought we knew where we were going when we were putting the board back together.

1567
02:19:57,640 --> 02:20:03,680
But recent communications with JPI has made us believe that there's some misunderstanding

1568
02:20:03,680 --> 02:20:08,000
any at the GPA as to what insurance and what coverage they're actually offering.

1569
02:20:09,420 --> 02:20:16,180
So our next step and this is for action basically looking for you to direct us to go and

1570
02:20:16,180 --> 02:20:18,400
get some quotes for D&O insurance.

1571
02:20:20,160 --> 02:20:25,400
But I think I'm going to pull that back and come back at a future meeting after we get some

1572
02:20:25,400 --> 02:20:30,180
of these questions that we have on a staff little answered to our GPA.

1573
02:20:30,180 --> 02:20:30,360
Okay.

1574
02:20:32,780 --> 02:20:33,460
More is better.

1575
02:20:35,020 --> 02:20:41,060
I'd also be interested in, I was under maybe I'm mistaken, but there might be some statutory

1576
02:20:41,540 --> 02:20:46,740
protections from liability under the government code, and maybe I'm remembering something

1577
02:20:46,740 --> 02:20:47,360
else entirely.

1578
02:20:48,120 --> 02:20:52,480
I'm sure that they would be aware of that, and if there was a DN, you know, a director's

1579
02:20:52,480 --> 02:20:55,720
an officer's insurance, it would tie into that.

1580
02:20:55,980 --> 02:20:58,080
But it'd be interesting to know if that is in fact true.

1581
02:20:58,420 --> 02:21:01,600
It's kind of like the Goods American law, you know, where you shouldn't be sued if you

1582
02:21:01,600 --> 02:21:05,480
try to do an emergency response to a first aid or something?

1583
02:21:06,260 --> 02:21:12,160
Yeah, we did check with other agencies to see if any of them had DNO and only because

1584
02:21:12,160 --> 02:21:23,620
so Glyda did not and Montecito did not and Casitas has ENO, which again is not DNO, so we're not sure

1585
02:21:23,620 --> 02:21:31,600
you know, if it's, there might be a statutory protection. So we'll stay tuned.

1586
02:21:32,040 --> 02:21:36,700
I just thought we were covered by JPA, so that you answer my question anyway. Thank you.

1587
02:21:37,560 --> 02:21:41,700
I didn't catch it, so we currently have ENO, or we do not, they just offer it.

1588
02:21:42,040 --> 02:21:48,720
You know, we current through our JPA coverage, we are covered for ENO, with their calling ENO, which I, I'm fiduciary.

1589
02:21:49,080 --> 02:21:52,520
Right. I'm interpreting their ENO as DNO insurance.

1590
02:21:52,520 --> 02:22:01,100
drive Bob, but you're going to go ahead and review all three of the D&O, E&O and FMO, because, and again,

1591
02:22:02,020 --> 02:22:08,220
I don't want to make it too complicated, but don't hold against the lawyers here, but

1592
02:22:08,220 --> 02:22:12,260
they only suit people where there's resources, and they're not going to suit anybody where there's no money.

1593
02:22:13,200 --> 02:22:18,760
So that's be mindful of, thank you, Patrick. I want to retry our peacefully, sir.

1594
02:22:18,760 --> 02:22:26,940
Yeah, I will come back with a report on all three coverages and, you know, describe what I found with the

1595
02:22:26,940 --> 02:22:29,440
JPI and, and our RISM manager.

1596
02:22:30,180 --> 02:22:35,140
Yeah, and just from public and private experience, company experience, this is not an unusual

1597
02:22:35,140 --> 02:22:35,620
thing.

1598
02:22:35,960 --> 02:22:37,140
We're not asking for it.

1599
02:22:37,160 --> 02:22:37,480
Right, Bob.

1600
02:22:37,580 --> 02:22:38,280
Something unusual.

1601
02:22:38,740 --> 02:22:46,080
And even your retirement, but even your health care, should be reviewed if we have

1602
02:22:46,080 --> 02:22:48,120
and the flaw in our healthcare coverage,

1603
02:22:48,600 --> 02:22:53,120
which could be major, any future surprises out there.

1604
02:22:53,500 --> 02:22:56,620
I think both should be reviewed, retirement, and healthcare.

1605
02:22:57,080 --> 02:22:57,680
Oh, these things.

1606
02:22:58,520 --> 02:23:00,540
Yeah, I can put that on list.

1607
02:23:01,000 --> 02:23:01,720
Thank you, everyone.

1608
02:23:01,920 --> 02:23:02,580
That's helpful.

1609
02:23:04,850 --> 02:23:07,070
Because otherwise you're not going to find any board members

1610
02:23:07,070 --> 02:23:08,630
who run for this board anymore first.

1611
02:23:08,910 --> 02:23:09,410
I'm serious.

1612
02:23:09,630 --> 02:23:11,030
I mean, it is.

1613
02:23:11,710 --> 02:23:12,330
So first question.

1614
02:23:14,690 --> 02:23:16,210
But you took the job anyhow.

1615
02:23:19,990 --> 02:23:21,550
Thank you.

1616
02:23:22,070 --> 02:23:22,710
Thank you, Bob.

1617
02:23:25,290 --> 02:23:34,210
7F, acknowledge ACWA, JPAI presence, special recognition award for information Bob.

1618
02:23:35,330 --> 02:23:36,790
Yes, speaking of insurance.

1619
02:23:38,250 --> 02:23:50,590
Each year at the end of the year, JPI reviews each member's loss ratio on the property

1620
02:23:50,590 --> 02:23:57,850
program, the workers' comp program and the general liability program, and so if it's lower

1621
02:23:57,850 --> 02:24:06,510
than 20% then they acknowledge you with a reward or not an award and we were lower than

1622
02:24:06,510 --> 02:24:14,550
20% on all three programs so we we got three certificates and so I just wanted to let you know that

1623
02:24:14,550 --> 02:24:20,250
well that's a compliment to your team do they come framed um you can frame them if you like

1624
02:24:22,820 --> 02:24:28,620
is it newsworthy well these to bring us a check but they don't do that anymore

1625
02:24:28,620 --> 02:24:33,820
I think anything below 20% of the newsworthy I think so

1626
02:24:33,820 --> 02:24:38,260
It's news already. It shows that we are keeping claims down and that translates into

1627
02:24:38,820 --> 02:24:41,960
low opinions. All right. Thank you.

1628
02:24:46,830 --> 02:24:48,770
Director reports number eight.

1629
02:24:51,010 --> 02:24:51,830
8 a.m.

1630
02:24:52,010 --> 02:24:54,930
Regular meeting December 16, 2024, Pauli.

1631
02:24:54,950 --> 02:24:57,650
Thank you. Yeah, similarly is it was to wet up upset.

1632
02:24:57,870 --> 02:24:59,830
We also perceived good news.

1633
02:25:00,530 --> 02:25:03,770
And even though some of the aquibills and the estimates have gone up,

1634
02:25:04,630 --> 02:25:10,250
other things have gone down including our claims too and so that is balanced out a little bit.

1635
02:25:11,290 --> 02:25:17,790
The board passed all of the draft budget total compensation with GASP74-75, everything

1636
02:25:17,790 --> 02:25:24,510
I've reported on from the admin committee. That was up for adoption. The Bartlett Pringle

1637
02:25:24,510 --> 02:25:30,310
audit went very well and as a matter of fact the very complementary and called the experience

1638
02:25:30,310 --> 02:25:33,910
and they find things financially stable and very routine.

1639
02:25:35,730 --> 02:25:42,630
We got a grant from Santa Barbara County for $79,000 for a photovoltaic and EV charging

1640
02:25:42,630 --> 02:25:52,590
systems and solar panels, batteries, and three EV charging podiums, and possibly a tax credit.

1641
02:25:52,750 --> 02:25:56,710
We know that's kind of a limbo right now, but we're going to be moving forward with it with

1642
02:25:56,710 --> 02:26:03,290
project cost after the grant of only $76,000 to install all of this.

1643
02:26:03,430 --> 02:26:10,510
There was an ROI cost benefit to done and it does look like we'll be saving about $43,000

1644
02:26:11,310 --> 02:26:16,810
over the next four to seven years so that made sense to go ahead and implement that and we're

1645
02:26:16,810 --> 02:26:24,370
also watching the, as I reported before, Aqua, or maybe the state of California laws to switch over

1646
02:26:24,370 --> 02:26:30,130
to EV vehicles at a 2027, I think it is, so this all plays into that.

1647
02:26:31,290 --> 02:26:38,070
We approved a Habitat Humanity Habitat Improvement Project for a fish that will be in

1648
02:26:38,070 --> 02:26:39,630
three phases over three years.

1649
02:26:39,710 --> 02:26:47,250
This is only the grant phase that we approved will be going after a grant with CDFW, but

1650
02:26:47,250 --> 02:26:55,910
that we did approve was a $50,000 payment to HDR for consulting assistance to come up with

1651
02:26:55,910 --> 02:26:57,890
a grant application.

1652
02:26:59,650 --> 02:27:04,110
This we're working with the Bureau of Reclamation to see if they're going to improve it.

1653
02:27:04,250 --> 02:27:09,250
The rational behind it is that, even though there is lots of water, lots of fish, there's

1654
02:27:09,250 --> 02:27:15,010
a lot of water in Hilton Creek and so the idea is to improve the fish habitat, improve

1655
02:27:15,010 --> 02:27:26,030
this passage with making those improvements to Milton Creek, so in the last I heard it was not approved by the Bureau of Reclamation yet, but they are studying it right now.

1656
02:27:28,330 --> 02:27:43,030
We had a shutfield tunnel inspection in December that had be called off after I think it was the first 500 feet because the communications failed, so we're regrouping on the communications and the good news is that the first part of that the 500 feet.

1657
02:27:43,030 --> 02:27:47,970
the tunnel look good but we are aware of some water damage through the rest of that so we have to

1658
02:27:47,970 --> 02:27:53,910
get back in there and fix the communications so that we can finish the finish that sheffield

1659
02:27:53,910 --> 02:27:59,410
title inspection the log boom that I reported on the brand new one was installed around the

1660
02:27:59,410 --> 02:28:04,830
intake tower it should hold up as I said before if we see any further damage then we have to

1661
02:28:04,830 --> 02:28:10,170
look at vandalism possibly fishermen trying to get in to fish around the intake tower because that's

1662
02:28:10,170 --> 02:28:18,590
a lot of fisher known to be. So we'll be putting cameras up if it comes to that. Also, Bob,

1663
02:28:18,890 --> 02:28:23,950
I'm not sure if you might know more on this, but normally the water status, there's some

1664
02:28:23,950 --> 02:28:29,050
water loss that's creeping up and Joel is in touch with the county to figure out where it might

1665
02:28:29,050 --> 02:28:34,570
be coming from, normally that's very stable. So it's unusual that they would actually say this is

1666
02:28:35,170 --> 02:28:39,390
newsworthy, and that's all we know at this time. I'll have my next board meetings on Monday.

1667
02:28:39,390 --> 02:28:40,870
That concludes my report.

1668
02:28:41,450 --> 02:28:41,870
Oh, you know what?

1669
02:28:42,010 --> 02:28:47,350
I should mention that even though we approved everything that I reported on last at the last meeting,

1670
02:28:47,890 --> 02:28:52,310
one of the things that we think we are going to follow up on is putting together a trust

1671
02:28:52,310 --> 02:29:00,950
for the GASP B7475 on paid on the unfunded liability.

1672
02:29:01,290 --> 02:29:05,990
We talked about that last time and the board agreed for the financial controller.

1673
02:29:05,990 --> 02:29:10,930
we're too looking to it on a very meticulous basis, not to be rushed to see if it makes

1674
02:29:10,930 --> 02:29:18,290
us first to start into a small part, to start paying into this. This will take a lot of time

1675
02:29:18,290 --> 02:29:23,150
to figure out the pros and cons and I'll be reporting back on that. Thank you. Thanks, Molly.

1676
02:29:25,930 --> 02:29:29,110
There we go. Item number nine. Get a minute to report.

1677
02:29:34,200 --> 02:29:35,540
All that and we're going to do the financials?

1678
02:29:35,540 --> 02:29:37,000
Yeah, okay.

1679
02:29:37,460 --> 02:29:41,800
Back at page 78, excuse me, you have the water cells budget to actual.

1680
02:29:42,080 --> 02:29:46,980
So through November, we are at 64 acre feet below budgeted projections.

1681
02:29:49,020 --> 02:29:54,020
And that's primarily related to M&I usage, which is at 67 acre feet below.

1682
02:29:54,220 --> 02:29:56,440
And yeah, I guess about three acre feet above.

1683
02:29:56,440 --> 02:29:59,960
Pack it page 79 and statement there.

1684
02:30:00,000 --> 02:30:21,180
Change in the position, our water cells through November, we're 42% through the year and they're at 42.5% so we're pretty right on target there, overall revenue, 43% and our operating expenditure total, which is on packet page 82 or at about 40% so 2% just below a digital projections through November.

1685
02:30:28,760 --> 02:30:30,440
My presentation, if you have any questions?

1686
02:30:31,600 --> 02:30:37,400
Thank you, Dorg, then item number two, then.

1687
02:30:37,780 --> 02:30:38,820
Yeah, I'll just mention this.

1688
02:30:38,900 --> 02:30:40,860
So the left investment statement is there.

1689
02:30:41,280 --> 02:30:42,580
If you have any questions.

1690
02:30:44,100 --> 02:30:45,660
I can give you, I guess, just a brief update.

1691
02:30:45,900 --> 02:30:49,000
Bob and I spoke with Kyle over with the camp.

1692
02:30:49,000 --> 02:30:53,560
And we are going to be moving some funds over to the camp fund.

1693
02:30:53,560 --> 02:30:56,340
I'd say in the next week or so.

1694
02:30:57,180 --> 02:30:57,660
Okay.

1695
02:30:57,660 --> 02:31:05,760
And then the third item was a quarterly budget project status which I apologize for the very small print we will make that bigger for the next quarter

1696
02:31:05,760 --> 02:31:15,640
But this report again shows up quarterly and it lists the districts open capital projects and the percent budget used and the percent completion with some notes there

1697
02:31:15,640 --> 02:31:21,600
So that just keeps the board updated on what staff is working on and where we are with each of the projects

1698
02:31:21,600 --> 02:31:30,320
Is he questions? I have a question on the U.S. bank. Are they starting behaving like a real bank for us or are they just?

1699
02:31:31,300 --> 02:31:38,860
Yes, so that's conversations. So I'm going so they did reduce for the GSA number of the fees through December.

1700
02:31:40,000 --> 02:31:46,760
We're working with them to cut down the fees for the district operating account.

1701
02:31:46,760 --> 02:31:55,160
It's all related to our mobile, we're online banking and the different services, so we're going working with them to see what exactly services we need.

1702
02:31:55,760 --> 02:31:59,100
So we can cut down those fees for that, but so far, so good.

1703
02:31:59,280 --> 02:32:01,900
They are being cooperative in terms of working with us.

1704
02:32:02,300 --> 02:32:11,020
Okay, and I'll really bring it up because I was told by a representative of US Bank, as long as you do everything online, there are no fees, and it doesn't sound like that's what.

1705
02:32:11,020 --> 02:32:18,940
Well, we don't do everything online because we do get quite a bit of what we do get checks and we get cash and so we do have to make deposits

1706
02:32:18,940 --> 02:32:27,400
So the daily deposits, so that's not online. We do get the checks that we get processed through the mouth.

1707
02:32:27,580 --> 02:32:32,920
Do get sent over in a file. So it is online, but again, we still get quite a bit of walk through a walk in traffic.

1708
02:32:34,260 --> 02:32:39,500
Okay, again, I don't want to get into this, but the bottom line is there.

1709
02:32:41,220 --> 02:32:43,720
In my opinion, they should be charging anything.

1710
02:32:44,020 --> 02:32:49,260
I mean, they should be happy that you're their customer, and even, you know, you're the

1711
02:32:49,260 --> 02:32:49,640
positive.

1712
02:32:49,940 --> 02:32:50,460
You're scanning in.

1713
02:32:50,640 --> 02:32:55,240
Again, there should be no, you guys are scanning in the walk them in.

1714
02:32:55,560 --> 02:32:56,080
We do both.

1715
02:32:56,300 --> 02:33:00,620
The checks that are mailed in are scanned in the files and over.

1716
02:33:01,100 --> 02:33:06,440
The checks that are walked in are different file and those are deposited along with the cash.

1717
02:33:07,180 --> 02:33:08,860
And again, I don't want to get in the middle of this.

1718
02:33:08,860 --> 02:33:12,820
but I would like to see what they're really charging us.

1719
02:33:14,220 --> 02:33:16,220
And again, I'm not suggesting that you check

1720
02:33:16,220 --> 02:33:20,440
some of the other banks, but there might be better

1721
02:33:20,440 --> 02:33:21,320
value out there for you.

1722
02:33:21,580 --> 02:33:21,920
That's awesome.

1723
02:33:22,600 --> 02:33:23,060
Thank you.

1724
02:33:23,140 --> 02:33:23,380
Thank you.

1725
02:33:23,480 --> 02:33:24,480
That's my personal opinion.

1726
02:33:28,160 --> 02:33:31,660
Then we got 9B and junior report.

1727
02:33:33,180 --> 02:33:41,380
Yeah, I only have one thing on this, just that we are working

1728
02:33:41,380 --> 02:33:49,520
And with the city on Bridge Replacement Project, over Carpenter Avenue, over Carpenter Creek.

1729
02:33:50,580 --> 02:33:59,700
And so the city has begun to move forward on that project and that will involve us replacing

1730
02:33:59,700 --> 02:34:04,500
the pipeline leading to the bridge and then the city will be in charge or will be responsible

1731
02:34:04,500 --> 02:34:08,500
for hanging a new pipe on the bridge that will connect in.

1732
02:34:10,500 --> 02:34:16,680
So that's been a project that's been around for a while, and we think it's going to be

1733
02:34:16,680 --> 02:34:17,020
started.

1734
02:34:17,580 --> 02:34:20,920
That's what the messaging from the city has come as saying.

1735
02:34:21,380 --> 02:34:25,920
That was a question if they could find a contractor, did they find a contractor to do the job?

1736
02:34:28,900 --> 02:34:35,900
I don't think they've advertised it yet, I think they're still working on the details of actually

1737
02:34:35,900 --> 02:34:37,620
getting it out. And the funding.

1738
02:34:39,940 --> 02:34:46,560
And then as far as letters of intent, to serve a lot of

1739
02:34:46,560 --> 02:34:59,900
ADUs, have been issued in December. There's just some small renovations, also, that had

1740
02:34:59,900 --> 02:35:06,020
There's only one that actually adds a little bit of square footage on on Beach Club Road.

1741
02:35:07,240 --> 02:35:10,980
No big developments have been issued a letter.

1742
02:35:11,400 --> 02:35:19,260
There was an intake of a big development on Craven, a 1360 Craven's Lane.

1743
02:35:19,940 --> 02:35:23,660
Still in review with that particular project.

1744
02:35:24,680 --> 02:35:27,140
So we have not issued that letter yet.

1745
02:35:28,640 --> 02:35:32,240
And then again, we more recently,

1746
02:35:34,620 --> 02:35:40,020
I'll see you again, one for an ADU in Rancho Monteligre,

1747
02:35:41,320 --> 02:35:46,300
and then another ADU on Cramer Road, so a lot of ADUs are happening.

1748
02:35:47,100 --> 02:35:53,900
And as I understand the ADU laws are changing this year again, so they're making the barriers lower.

1749
02:35:53,900 --> 02:36:02,160
and so we're going to see probably a continuation of letters of letters of requests for ADU.

1750
02:36:06,910 --> 02:36:15,030
So, for the operations report, nothing to report here on the monthly SAS report, but I did

1751
02:36:15,030 --> 02:36:22,390
want to report that we had a uptick of calls about our fire hydrants and the readiness

1752
02:36:22,390 --> 02:36:27,610
for fires, which is understandable, given the stories that we're coming out of the Palaces

1753
02:36:27,610 --> 02:36:28,190
Fire.

1754
02:36:30,030 --> 02:36:36,930
And so I wrote an article for the coastal view that we'll come out tomorrow, just kind

1755
02:36:36,930 --> 02:36:39,930
of highlighting some of the details of our system.

1756
02:36:40,770 --> 02:36:46,170
Our system is, I think, very well prepared, as well as the staff as well as well prepared

1757
02:36:46,170 --> 02:36:49,010
because we've had such a recent experience with the Thomas Fire.

1758
02:36:49,930 --> 02:36:58,650
We are fortunate to have not too many tanks, but we, you know, the majority of the tanks

1759
02:36:58,650 --> 02:37:03,930
with the exception of Shepard Mesa tank, all the tanks with the exception of Shepard Mesa

1760
02:37:03,930 --> 02:37:11,070
are buried concrete tanks, so they're not really vulnerable to fire, like melting in

1761
02:37:11,070 --> 02:37:16,430
some agencies where you have bolted steel tanks, those will actually melt and you will

1762
02:37:16,430 --> 02:37:24,290
water pressure that way. We also have generators on all of our pumping stations so in the

1763
02:37:24,290 --> 02:37:30,910
event that power goes out which is very common during wildfire we have an ability to keep pumping

1764
02:37:30,910 --> 02:37:44,310
water into those tanks. We have about 27 million, 27 million gallons of water storage in the district

1765
02:37:44,310 --> 02:37:53,110
which depending on how you make the calculation gives us up to a days, you know, if no other

1766
02:37:53,110 --> 02:37:59,430
water is flowing into these tanks, we have a full day of water supply to fight fires that

1767
02:38:00,090 --> 02:38:01,830
elevated flow rates.

1768
02:38:03,470 --> 02:38:10,050
The other thing to remember is we have the ability or cater as the ability to move 10 million

1769
02:38:10,050 --> 02:38:19,170
a day into our service area. So really, it's a really unlikely that we'll see a situation

1770
02:38:19,170 --> 02:38:26,570
that was seen in palaces where the demand was simply outpacing the ability of the system

1771
02:38:26,570 --> 02:38:34,430
to recharge because we have quite a bit of throughput in our system. Thanks to the South Dakota's conduits,

1772
02:38:34,430 --> 02:38:37,950
of very large transmission mean really can push a lot of water.

1773
02:38:38,110 --> 02:38:40,310
We also have two very large reservoirs,

1774
02:38:40,550 --> 02:38:41,830
or take a reservoir and carbon reservoir,

1775
02:38:42,230 --> 02:38:43,570
that's sort of a lot of water.

1776
02:38:46,130 --> 02:38:49,890
And then I will just plug the intertype project

1777
02:38:49,890 --> 02:38:53,150
is one of the things that it's attempting to do

1778
02:38:53,850 --> 02:38:56,050
is address the vulnerability of having

1779
02:38:56,050 --> 02:38:58,310
a single pipe coming into the water district.

1780
02:38:59,250 --> 02:39:04,350
So rather than if ever we had multiple calamities

1781
02:39:04,350 --> 02:39:10,210
happening. First quake happens, breaks the south, goes kind of into it, then a fire starts,

1782
02:39:10,830 --> 02:39:15,510
then we want to have another way to get water and so that's what the disease interchange will

1783
02:39:15,510 --> 02:39:23,750
allow us to do. So we're in fairly good shape. That's what it's standing. Yeah, one last thing I

1784
02:39:23,750 --> 02:39:33,510
did want to give props to the operations department is they have been for a year now and they'll

1785
02:39:33,510 --> 02:39:38,830
continue to do this, going to each hydrant, making sure that the operating nuts work,

1786
02:39:39,030 --> 02:39:44,050
looping the operating nuts, checking the valves, making sure they work, making sure

1787
02:39:44,050 --> 02:39:49,210
that the valves are on, the water is there when the fire departments get to a fighter

1788
02:39:49,210 --> 02:39:51,890
register, get to the hydrants, make sure there's water available.

1789
02:39:53,050 --> 02:39:58,150
So we're about 90% done with that exercise and once we get done, we'll just continue to

1790
02:39:58,150 --> 02:40:01,770
we'll start back at the beginning and do the same inspection.

1791
02:40:03,510 --> 02:40:05,550
So that is all newsworthy.

1792
02:40:06,330 --> 02:40:07,950
So did you already go look about tomorrow?

1793
02:40:09,590 --> 02:40:12,610
I had a question on these fire hydrants when one is off,

1794
02:40:12,610 --> 02:40:16,910
do we have protection that there is a shadow valve,

1795
02:40:16,970 --> 02:40:17,770
like an oil wells?

1796
02:40:18,090 --> 02:40:22,310
Yeah, we have what's called, it's a little ball check valve,

1797
02:40:22,870 --> 02:40:25,670
basically I forget the name of the product,

1798
02:40:25,670 --> 02:40:28,410
But it essentially has a pin and when it gets

1799
02:40:28,410 --> 02:40:31,430
sure off the pin pops up and a little ball plugs

1800
02:40:31,430 --> 02:40:31,990
the hole.

1801
02:40:32,670 --> 02:40:36,090
So what you get is about a quarter inch stream in the air

1802
02:40:36,090 --> 02:40:39,670
of water that you can see, but it's not water.

1803
02:40:39,970 --> 02:40:40,970
It's not flooding everywhere.

1804
02:40:41,330 --> 02:40:42,890
All right, yeah, I was wondering about that.

1805
02:40:43,150 --> 02:40:44,810
I saw what these idiots, you know, they break them

1806
02:40:44,810 --> 02:40:49,370
and they sell them and then it's all here.

1807
02:40:49,370 --> 02:40:50,310
I'll be your article.

1808
02:40:51,450 --> 02:40:53,810
I vaguely remember there used to be something

1809
02:40:53,810 --> 02:40:57,470
He's going to like a dry pipe or dry stack, hydrant, and then we replace those.

1810
02:40:58,050 --> 02:40:58,110
Dry barrels?

1811
02:40:58,110 --> 02:40:58,770
Dry barrels?

1812
02:40:58,970 --> 02:40:59,970
We've replaced all those.

1813
02:40:59,970 --> 02:41:00,690
Those are long guns.

1814
02:41:00,910 --> 02:41:05,850
Do you think that was partially what they had, dry barrels, hydrants that were broken?

1815
02:41:06,130 --> 02:41:06,810
It's possible.

1816
02:41:07,150 --> 02:41:07,170
Yeah.

1817
02:41:07,310 --> 02:41:12,070
So that would be the nut, you know, the nut on the top brings up the valve as clear

1818
02:41:12,070 --> 02:41:12,710
underground.

1819
02:41:14,070 --> 02:41:20,150
So, part of, you know, from the articles that I've read, part of it was a reservoir, a major

1820
02:41:20,150 --> 02:41:22,030
reservoir was down for maintenance.

1821
02:41:23,070 --> 02:41:23,390
Winner.

1822
02:41:23,390 --> 02:41:31,810
Yeah, part of it was the system just wasn't designed to bring those tanks up as quickly as the water was being trained out,

1823
02:41:35,030 --> 02:41:35,030
so

1824
02:41:35,030 --> 02:41:38,150
Yeah, please make it up in all your fire hydros, there's another water right

1825
02:41:40,310 --> 02:41:42,450
Thank you Bob

1826
02:41:43,310 --> 02:41:48,490
Blue one good item number 10 close session

1827
02:41:49,230 --> 02:41:53,590
Oh, did you want me to do the water splider parts? Sorry. Oh, sorry. Yeah

1828
02:41:53,590 --> 02:41:57,850
go for it. Yeah, we know what it means. I've never listened to these events. I don't need to see them again.

1829
02:41:58,470 --> 02:42:03,350
All right. Well, let me just highlight it then because, you know, me, so it does a lot of work on these things.

1830
02:42:03,470 --> 02:42:11,070
I think, you know, it's worth talking about. So this is just a picture of our overall surface watch by compared to previous years.

1831
02:42:11,250 --> 02:42:14,270
And so you can see we're actually in a better position that we've been in.

1832
02:42:14,690 --> 02:42:20,670
And this is largely because of carryover and new year allocations kind of stacking up.

1833
02:42:21,450 --> 02:42:27,930
Now, I will say we've received so little rain this year, I'm pretty certain that this

1834
02:42:27,930 --> 02:42:33,750
will look very different next year in terms of our water supply available in some

1835
02:42:33,750 --> 02:42:43,690
of these water storage reservoirs, groundwater, so lower than, you know, drought years

1836
02:42:43,690 --> 02:42:48,970
previous, but a little bit more than wet years where we had a lot of rain.

1837
02:42:51,730 --> 02:42:56,790
Our pumping target is this orange line, and I mean, you can kind of see, oops, I'm sorry

1838
02:42:56,790 --> 02:42:58,210
about that.

1839
02:42:58,930 --> 02:43:00,910
I'm going to change my method here.

1840
02:43:02,830 --> 02:43:07,550
Our pumping target is the orange line, so we try to pump about a thousand acre feed each year

1841
02:43:07,550 --> 02:43:08,250
of groundwater.

1842
02:43:09,250 --> 02:43:10,870
That's a long-term target.

1843
02:43:10,870 --> 02:43:14,410
We'll sometimes go under that, sometimes go over that.

1844
02:43:15,310 --> 02:43:18,510
Currently, or as of November, we were at 7.68.

1845
02:43:18,650 --> 02:43:20,170
Currently, we actually have already

1846
02:43:20,170 --> 02:43:24,330
at the 1000-acre feet of production.

1847
02:43:24,550 --> 02:43:26,830
The reason why it's a little bit front and loaded.

1848
02:43:27,910 --> 02:43:30,990
So starting in January, we're really not pumping anything

1849
02:43:32,490 --> 02:43:34,010
until July 1.

1850
02:43:34,010 --> 02:43:55,030
is that we were the Kachuma is relatively full, and if there were storms coming through what we wanted to be in the position to do is turn off the wells, still have a matter of target, but then start taking a supplemental water from Kachuma which is excess water.

1851
02:43:56,610 --> 02:44:01,670
That didn't happen, or it doesn't look like it's going to happen, but who knows, we could

1852
02:44:01,670 --> 02:44:03,550
have a March or February miracle.

1853
02:44:07,130 --> 02:44:12,450
This is kind of the consumption year over year again, you can see our consumption is

1854
02:44:12,450 --> 02:44:15,730
down, or it's pretty close to previous years.

1855
02:44:16,550 --> 02:44:21,210
This is a little bit strange in that, this is just for November, but this is a little strange

1856
02:44:21,210 --> 02:44:28,390
in that it's higher for a wetter year and that could have been because the rainfall last year

1857
02:44:28,390 --> 02:44:36,690
or in 23 was later and the rainfall this year was early but it was very, very minute.

1858
02:44:40,010 --> 02:44:50,650
So this graph just kind of shows the wetness and so you can kind of see this as demand

1859
02:44:50,650 --> 02:44:59,950
And this is these two lines depict kind of the average of a wet year that we would expect in demand in the average of a drug.

1860
02:45:00,000 --> 02:45:29,800
And so you can see dryers are higher, weters are lower. We're kind of threading that needle. And you can see that early, like in August, September, we were acting more like it was a wet year. And now that we've gone through December and we're halfway through January. And we've really seen no rain. It was a demand of starting to act like it's a dryer. So, we've got a lot of work to do.

1861
02:45:37,970 --> 02:45:43,650
that's the final yeah so so they've already made an initial I think it's 15% currently so

1862
02:45:43,650 --> 02:45:51,570
they I think they need a 5% and they brought up to 15% in December or in January so they'll

1863
02:45:51,570 --> 02:45:57,470
keep going up if if it does rain but if it doesn't rain it did rain in Northern California a couple

1864
02:45:57,470 --> 02:46:01,530
It's a big storm scheme in the North of Gal, a little different than what we have here.

1865
02:46:04,110 --> 02:46:10,990
So this is axails on the left and M and I sails on the right and you kind of see the

1866
02:46:10,990 --> 02:46:17,230
original line is our target line and the gray line is our max expected and you can see on

1867
02:46:17,230 --> 02:46:24,490
the left that we're on axails we're seeing maximum sales so that is reflection of the

1868
02:46:24,490 --> 02:46:30,450
practice, lack of rainfall during even the earlier parts of the year.

1869
02:46:31,370 --> 02:46:34,730
This is based on the fiscal years that starts in July.

1870
02:46:36,930 --> 02:46:41,010
And then, M&I is below, which is interesting,

1871
02:46:43,170 --> 02:46:47,250
we think this is again reflecting some of

1872
02:46:47,250 --> 02:46:53,350
the hardening that occurred during the last several periods of dry weather, where residents

1873
02:46:53,350 --> 02:46:57,610
or M&I users are starting, you know, they're just using less.

1874
02:46:58,630 --> 02:47:01,330
Lons have been removed, plumbing has been retrofitted,

1875
02:47:01,610 --> 02:47:04,710
behaviors have become routine.

1876
02:47:08,150 --> 02:47:09,590
Those two together,

1877
02:47:10,650 --> 02:47:13,350
result in this combined sales.

1878
02:47:13,570 --> 02:47:16,810
So we're within our targets own,

1879
02:47:16,970 --> 02:47:18,190
just a little bit above.

1880
02:47:18,770 --> 02:47:20,690
If we stay with that targets own,

1881
02:47:20,690 --> 02:47:30,710
will reach our budget at 35.07 of sales, and so that will be consistent with our budgeted

1882
02:47:30,710 --> 02:47:31,110
revenues.

1883
02:47:32,470 --> 02:47:33,550
I'll ask you a quick question on that.

1884
02:47:34,070 --> 02:47:36,750
What, how far under 35.07 is it a problem?

1885
02:47:38,430 --> 02:47:42,610
Like 10% at 1%, 20% problem for revenues?

1886
02:47:45,290 --> 02:47:49,890
Yeah, so we've had, I think we've had sales as low as 3,200.

1887
02:47:51,710 --> 02:47:57,990
And we didn't violate any of our coverage ratios, but it was close, so we get very close.

1888
02:48:02,800 --> 02:48:05,260
So this is January 7th, drought monitor.

1889
02:48:05,460 --> 02:48:13,380
You can kind of see there's some drought fears coming in.

1890
02:48:13,380 --> 02:48:18,460
You can see Santa Barbara is in the abnormally dry to moderate drought.

1891
02:48:18,460 --> 02:48:23,920
I think this will change if we don't get any rain before next month.

1892
02:48:24,000 --> 02:48:26,820
This will change probably into these darker colors.

1893
02:48:29,000 --> 02:48:35,660
We do have, again, reservoir conditions that are favorable for a single year drought.

1894
02:48:36,160 --> 02:48:40,920
If it goes into a multiple year drought, then we'll start to see, you know, similar activity

1895
02:48:40,920 --> 02:48:42,900
as we did in 2021,

1896
02:48:46,250 --> 02:48:46,250
22.

1897
02:48:46,890 --> 02:48:49,690
Again, I'll just highlight here for the year.

1898
02:48:49,910 --> 02:48:54,910
Kachima has seen 0.83 inches and carbonaries only seen 0.64,

1899
02:48:57,390 --> 02:49:03,850
so it's very, you know, to date is 9% 11% which it's hard to believe.

1900
02:49:05,890 --> 02:49:11,030
Most of the rain does fall in February, so we'll see this rapidly change.

1901
02:49:11,210 --> 02:49:14,810
If these don't change, we'll see this percentage rapidly change.

1902
02:49:17,280 --> 02:49:26,840
Again, reservoir conditions were, we're not full, full is 1992, 190,000 acre, 190,

1903
02:49:27,140 --> 02:49:35,140
3,000 acre feet, we're about 170,000, so we've used about 14,000 acre feet this year,

1904
02:49:35,280 --> 02:49:38,560
which is about half of the annual allocation of consumer.

1905
02:49:41,390 --> 02:49:47,930
Again, across the state, reservoirs are in very good condition for going into a drought.

1906
02:49:49,530 --> 02:49:51,650
That's it.

1907
02:49:52,290 --> 02:49:53,310
Thank you Bob any questions?

1908
02:49:54,330 --> 02:49:56,470
Then we move on to item number 10.

1909
02:49:57,190 --> 02:49:59,870
The closed session conference with Labor Negotiated

1910
02:49:59,870 --> 02:50:04,730
Pursuit to Government Code Section 54957.6.

1911
02:50:05,290 --> 02:50:08,550
District negotiator Robert McDonald's Employee Organization

1912
02:50:08,550 --> 02:50:10,770
Own Representative Employees.

1913
02:50:12,250 --> 02:50:12,530
So...

1914
02:50:12,530 --> 02:50:13,530
Recording stopped.

1915
03:27:09,710 --> 03:27:10,810
Good morning and progress.