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Good morning, everyone. Welcome to Santa Clara Valley Water District Board of Director Special Meeting.

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Meeting will be on the Pacheco Reservoir Expansion Project, agenda following. There's the March 16th, 2023.

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Please take the roll.

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Director Bell, Director Eisenberg. She's excused at this moment. Director Estimera?

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Dr. Shua, here, Dr. Keegan, Dr. Santos, Chevrolet.

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Here,

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do we have any members of notice that Public Board of Directors meets in closed session

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and associated with the graph in Brown Act, following the conclusion of session discussion,

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the board will return for the remaining items on the regular meeting agenda, and closed session

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item 2.1, Samantha, can you

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introduce yourself by the way?

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Thank you.

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Good morning.

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I'm Samantha Zutler.

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I am special counsel for the district.

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And I would like to announce in reference to the close session that written claims or communications relating to close session to the close session, not among the agenda are available for public inspection upon request as required by the Brown Act.

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Thank you.

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Thank you.

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To the clerk, do we have anybody that wants to speak to the board at this point before we turn to close session?

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Sorry, I couldn't see the screen.

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No, we have no hands raised and I have no speaker cards.

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Okay, great.

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So we will adjourn to close session and reconvene here at 11 a.m.

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Thank you.

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Good afternoon.

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Welcome to Value-Water Board of Directors. Could we continue from close session?

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Local council, do we have anything to report out?

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Thank you, Chair Varella. Close session was had and there is no reportable action.

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Thank you. So, Director Santos, would you direct us in the pledge of allegiance this morning?

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It's

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just time now for anyone that chooses to present to the board any thing that any item that is not on today's agenda, do we have any public speakers that wish to address the board this morning?

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Thank you, Mr. Chair. I have no hands raised in Zoom and no public speaker cards at this time.

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Okay, that's good. Thank you. We will move to our item 2.4.

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We see information on water supply strategy, water supply master plan update, and work study

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session on the Particle Reservoir Expansion milestone review, project number 9195402, district

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1, we're said county.

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Mr. Hakes.

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Good morning, Chair.

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Welcome to the board.

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Chris Hakes acting ACEO, along with the staff support from Lisa Van Kosh, assistant officer,

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Acting Deputy Operating Officer Ryan McCartor acting CFO Charlie and Sun and Assistant Officer

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Kirsten Truff.

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Today we'll be presenting on our water supply master plan and excuse me, the slides are not

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advancing.

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There we go.

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We'll be presenting on the water supply master plan, the decision framework we use to do that

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as well as the port previously adopted board strategies, receiving information on the

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take-o reservoir expansion project, it's associated milestones and what some good review points

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would be for it. We will recommend that you schedule a future water supply master plan

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and Pachaco work study session when we reach the 60% design level and then of course direction

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to staff as needed.

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So we're going to start off just kind of giving you an overview of the water

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supply master plan. We feel like in terms of evaluating the Pachaco reservoir expansion project,

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It's important to understand how it fits into our current water supply master plan portfolio as well as what the process is

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That we use to evaluate both Chaco and our other projects

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So Christian Kirsten will start us off.

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I think your microphone is on. They said it was on is it on now? Okay, there you go

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Thank you, Chris. Here's the two of assistant officer for the water supply division

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So I'll talk about the role of the water supply and asked a plan and as you know, that's our guiding documents for long-term water supply investments too

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Ensure we have water supply reliability for Santa Clara County. The projects and portfolios are

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valued in the plan, including the ability to meet dry year demands. Next slide.

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So, the current master plan was adopted by the board in 2019, and includes three strategies

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to ensure a sustainable water supply through 2040. They are listed here, secure existing,

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supplies and infrastructure, expanding water conservation reuse and optimizing the operation

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of the existing system. The plan also includes a level of service goal to meet 100% of

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demand and normal years and 80% of demand in drought years. Next slide, please. So we'll

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go through the strategies one by one. The first one is secure existing supplies in infrastructure

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and it is foundational and an includes taking care of our existing infrastructure such as

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pipes and treatment plans, securing our local water rights and other projects to maintain the existing

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system.

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Next slide.

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The second strategy is to expand water conservation and reuse.

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It involves expanding the use of these drought resilience supplies, and then I'm going

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to be most reliable in the future under a change climate.

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Our goal is to have 24,000 acre feet per year, portable reuse, and 110,000 acre feet of conservation by 2040 compared to our baseline year.

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Next slide, please.

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The third strategy is to optimize the use of the existing system to increase operational flexibility, including diversifying storage.

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In some years, supplies exceed demands.

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Additional facilities would increase our flexibility to use or store these excess supplies

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and therefore value water's ability to respond to outages or operate the system during challenges like droughts or water quality problems.

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A number of storage projects are listed here that are currently under consideration for diversifying existing storage to support that strategy 3.

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Pacheco is one of the many options because it is in the county and controlled by Valley

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Waters, the reservoir may provide greater operational flexibilities than some alternative

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projects, but other storage projects could provide similar benefits, for example, the loss

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for carers of reservoir expansion project.

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And together, these three strategies provide a framework for a sustainable and reliable future

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water supply and strike a balance between protecting what we have, investing in the future

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making the most of the existing water supply system. Next slide.

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These are some of our upcoming

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project decision points. So in the next couple of years, the board will be asked to make decisions

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on a variety of projects. Beginning this year, we have started the process of updating our water

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supply master plan and will evaluate these projects through this update with the focus on their

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ability to meet future demand. They impact on future water rates as well as other considerations such

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schedule and the likelihood of success.

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Pachakos not a standalone decision

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and through the water supply master plan update process,

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we will look at all of these potential projects together

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rather than individually.

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Next slide, please.

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As we presented in November and our monitoring

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and assessment program update,

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we will have a shortage in the future

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and need drought proof supplies.

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With the water supply master plan update,

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a primary strategy currently under considerations

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to pair new supply with diversified storage. Under the strategy, a decision tree can be developed

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to identify different pathways for getting there, you know, to have the new supply and

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the diversified storage. And the project combination that we might want to consider bringing

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to the board. So for example, if our primary focus now is to develop alternative supply and diversify

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storage depending on the status of those projects, we could end up with these various scenarios.

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And that also illustrates the interdependence of some of our projects.

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And we will bring this information to help the board make decisions on which projects to invest in.

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Because of the uncertainty associated with implementing large water project,

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it is important that we pursue a variety of projects to minimize risk.

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So basically we're pursuing more projects and we will likely need or can afford

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because we don't know which ones will be successful and we hope to bring recommendations

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that show projects in this type of framework to you in the future.

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Next slide.

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And this is our rough timeline for our water supply master plan update.

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And we will focus first because on the upcoming project decisions on refining the project evaluation

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framework to support the board's investment decisions this year.

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And we will also engage stakeholders as a regular effort throughout the plan.

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And then we will update the board further.

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In June, and in 2024, the efforts will be focused on writing up the plan, continued stakeholder engagement

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and plan adoption. And with that, I'll turn it back over to. Well, actually, with that, I'll pause for questions.

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So I apologize in my intro. I should have said that the presentation is broken into three distinct parts.

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After which the board will have the opportunity to ask questions in each section. This first section was the water supply master plan.

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the next section will be background, benefits, and partners on Chaco, and then the last section

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will also be finance and milestones.

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Okay, so do board members have any questions on the first portion that we've heard at this point?

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Any, okay, Dr. Schweya?

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Okay, I see Dr. Gigan, Vice Chair, Regent Gigan.

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Thank you.

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So if we look at strategy three optimized use of existing system,

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so there are four

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dam-related projects in this slide. I mean, the new groundwater bank is under

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ground storage, but in terms of, so, so there's the Caros, Patreco, the

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system raise, and the sites reservoir. And I believe that all of those dams are

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looking for potential cost-sharing partners. Is that correct?

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That is correct. And of the four projects, could you tell me what are the partnership participation rates?

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Uh, I will turn that over to Kristen.

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Okay. Well, the Lasvakaris Reservoir Expansion Project has a number of local agency partners.

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So what is reflected in our CIP is just our portion of the cost.

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So it's a large number of Bay Area agencies.

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And what percentage are they funding versus external funders?

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I'm not sure on every single one of these.

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So we could bring that back.

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But so they all are pursuing outside funding

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and then our share is what's reflected in our CIPs.

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So if I may, each of the projects is a little bit different

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in terms of the funding that's been acquired to date.

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Lasbecaros, Pacheco, and Cites Reservoir have all received

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prop one funding through the CWC, in varying degrees.

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And BFSisk is actually a add-on project on top of the dam

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raise that's being conducted by the U.S. Bureau of Reclamation.

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Stack can come back with the exact percentages

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and distribution of internal versus external funds

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at a future date if you don't mind.

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Okay, I mean the point of my question was to look at the fact that there's a number of water storage projects out there and compare our level of participation with Pachaco to what we're seeing externally.

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So I think that information would be helpful to the board as we make our considerations.

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So I appreciate your offer to provide that information.

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And we will have some upcoming slides on specific partnership

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in particular itself, which we will have the largest share

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of those projects that are currently listed,

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and we can come back with our current levels for the future.

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Yeah, I almost waited to ask the question,

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but my question was not just the specific to Pacheco,

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so I thought this was the appropriate time to ask it.

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So thank you, Mr. Hanks.

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So, I appreciate it.

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Thank you, Chair.

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I have a more than one question.

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So since this is a work study session,

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I guess it's okay for me to just keep asking questions.

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First of all, just an editorial comment that I noticed that we put data conveyance project

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under the secure existing surprising infrastructure.

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I think it makes perfect sense that we put this before under three.

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That's never made sense to me.

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So it is a surprising infrastructure

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that we need to make sure it's working.

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So I think it's a good move.

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So my question is primarily on page eight of the slides.

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We listed a timeline for upcoming project decision points.

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So these are the project that's currently listed

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under future opportunities.

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And every one of those projects on the future project,

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the opportunity list can or cannot be a realistic project

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for us to meet our future demand.

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So, on this chart, we set project.

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Decision points for the board. So, can you say a little bit more about the kind of project decision? Are we talking about, we're actually selecting a project, we're eliminating a project, or just a review of all the project and then there's post and cons and then continue the process.

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And I think it's important for people who are listening to this works of the decision to understand that.

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Yes, definitely. I'd be happy to. So the only one where there's a project commitment really scheduled is the last of a

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Reservoir Expansion Project. Once those service agreements are executed and currently the schedule calls for a sort of end of 2020-23

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But we're not sure if you know if it will stay on schedule as well as portable reuse once we enter into a P3 contract

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Those are those are actual project commitments

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for Las Vercares after Project Commitment

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We would need the JPA's approval

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Basically to pull out all the other ones that are listed in 2020-3 are

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fund early funding decisions, but not project commitments.

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So what we are hoping to do as part of the water supply

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and mass finance support, all of those decisions,

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and make sure that you have the right information

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to know which ones are the best ones to invest in.

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So then that goes to my follow-up question

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that the water supply master plan that's currently being

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We revised after five years.

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So the schedule calls for that plan to your preliminary schedule is end of 2024 to have

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a new water supply master plan, because we'll call it that way first and second.

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So then this decision points in 2023 for the board.

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How does the water supply master plan help help the board's decision?

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is there a connection, or the board needs to say lots, lots of carousels,

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more expansion, the board needs to make a decision based just principally on the

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merit of that particular project, and then not much connection to a lot of supply and

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master plan.

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No, we aim to have the analysis complete by the time these decisions need to be made.

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We will then, you know, obviously there will be more work to do, like writing up the plan

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getting more stakeholder input. Some of the goals, for example, for portable reuse or water

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conservation, we may still be working on what those goals should be, but we are hoping to have

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you know our decision framework and the important things ready for the board to review by the

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time these decisions come around. Okay, and the board's decision may change the framework of the

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the supply and national supply and that as soon as you're in the process of working it on

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and finalize it.

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Correct.

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And we will bring an update to the board and June and request your feedback.

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Okay.

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Good.

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Thank you for that.

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Just thank you for that answer.

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And for

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a slide night, it's a model that's designed to help the board to evaluate all these opportunities, including Pacheco as one of those opportunities.

231
00:28:48,300 --> 00:28:56,620
So I'm not sure this is the most easier, easy to understand, chart, that maybe you can just

232
00:28:56,620 --> 00:29:00,600
say a little bit more so that people who listen can understand.

233
00:29:01,040 --> 00:29:09,720
I think for me it's like, so we have alternative supply A and definitely that's probably

234
00:29:09,720 --> 00:29:16,480
a portable water or purified water, and alternative supply, B, and I thought, what is alternative

235
00:29:16,480 --> 00:29:21,280
supply, B, is that the salonation, okay, that's the salonation.

236
00:29:21,820 --> 00:29:29,680
So if you can just say a little bit more about starting with a bucket, me store, it's just,

237
00:29:29,680 --> 00:29:30,480
yes, that's right.

238
00:29:32,500 --> 00:29:35,580
Well, there is a model that, and people can understand it better, so there is a model

239
00:29:35,580 --> 00:29:37,040
that we will be used.

240
00:29:37,080 --> 00:29:38,260
We haven't used this yet.

241
00:29:38,260 --> 00:29:47,940
No, yeah, and although it's presented to us in November, but I think it's just getting everybody to be all the same pitch and we'll be good.

242
00:29:48,300 --> 00:29:55,420
I mean, the main message of the slide is that we need both more supply and storage to be prepared for the future.

243
00:29:56,400 --> 00:29:59,660
So the drops are basically new supplies.

244
00:30:00,050 --> 00:30:11,110
Alternative supply means, yes, either portable reuse or desalination or something like that, but there's also surface water supplies where we might be able to get additional supplies.

245
00:30:11,230 --> 00:30:14,490
So some of the reservoir projects do have additional supplies.

246
00:30:15,210 --> 00:30:23,830
And then buckets are storage, and those will help us be more flexible. So in wet years, we can capture more water to then use during dry years.

247
00:30:23,830 --> 00:30:33,070
And, you know, we expect rainstorms to be more intense, and so having additional storage

248
00:30:33,070 --> 00:30:35,830
to capture that is likely beneficial.

249
00:30:36,530 --> 00:30:41,850
And then we would go through and we would make recommendations on what are the best first

250
00:30:41,850 --> 00:30:46,850
options to pursue, but that doesn't mean that some of the other options we shouldn't keep

251
00:30:46,850 --> 00:30:47,450
going, right?

252
00:30:47,470 --> 00:30:52,670
Sometimes we participate in low participation rates, because then if one project isn't successful,

253
00:30:52,670 --> 00:31:00,830
we can then call on to the next project, next best project. And that's what this tries to show.

254
00:31:01,430 --> 00:31:06,710
And alternative supply could also be increased water conservation beyond the goals that are

255
00:31:06,710 --> 00:31:11,050
already in the water supply master plan or a stormwater capture. Things like that.

256
00:31:12,050 --> 00:31:22,650
Okay, thank you. Hope that's helpful. Yeah. Sure can have one more. Of course, of course,

257
00:31:22,650 --> 00:31:26,850
And the last one, I just, I don't want to distract

258
00:31:26,850 --> 00:31:31,770
how the discussion that staff laid out for Pacheco.

259
00:31:32,130 --> 00:31:35,410
So I just, I just want to plan to see it

260
00:31:35,410 --> 00:31:36,990
and then maybe we can discuss later.

261
00:31:38,010 --> 00:31:43,350
So in the Pacheco reservoir part of this presentation,

262
00:31:43,510 --> 00:31:48,450
we've laid out a very kind of a detail schedule

263
00:31:48,450 --> 00:32:01,950
on moving from today to next year and then the future and this slide A, you can go to slide A.

264
00:32:02,990 --> 00:32:17,790
It's listing the board will have a key decision part in 2024, which is that the 60% stage of the design and also, I think,

265
00:32:17,790 --> 00:32:22,510
completion of the draft environmental impact report.

266
00:32:23,930 --> 00:32:33,830
So my question is that this decision point versus we've laid out a complete schedule

267
00:32:33,830 --> 00:32:35,290
all the way to the completion.

268
00:32:38,570 --> 00:32:45,590
The way I look at the schedule is that they are multiple decision points for the board based

269
00:32:45,590 --> 00:32:52,750
the schedule and then the first decision point is 2024. It could be that in 2024 there's

270
00:32:52,750 --> 00:33:01,790
adequately information we can use to determine whether Pachaco is out or not. But then

271
00:33:01,790 --> 00:33:08,570
if not then there are other decision points for the board. So I just want to say that and then

272
00:33:08,570 --> 00:33:13,010
later when we go through the discussion on Pacheco,

273
00:33:13,550 --> 00:33:16,830
if you can elaborate more on that.

274
00:33:17,130 --> 00:33:21,290
Because this whole thing is about, we have long list

275
00:33:21,290 --> 00:33:25,710
of major project primarily for storage,

276
00:33:26,870 --> 00:33:31,430
and it's intended to, it's not like we want to build something,

277
00:33:31,970 --> 00:33:33,950
it's intended to intention of it,

278
00:33:33,950 --> 00:33:40,650
So that we can deal with a abnormally dry period

279
00:33:41,390 --> 00:33:46,950
or a couple of years of just bad conditions,

280
00:33:47,450 --> 00:33:48,310
bad weather conditions.

281
00:33:48,750 --> 00:33:50,210
So it's about that future.

282
00:33:50,470 --> 00:33:53,970
It's not about anything else.

283
00:33:55,810 --> 00:34:02,310
So in moving forward that the board's decision

284
00:34:03,650 --> 00:34:11,070
And any one of these opportunities, although right now, we're focusing on Pacheco, but then

285
00:34:11,070 --> 00:34:13,130
in a way, is any one of those opportunities.

286
00:34:13,570 --> 00:34:16,830
So if later, if you can't just elaborate on that, that would be helpful.

287
00:34:17,030 --> 00:34:17,910
I think for everybody.

288
00:34:18,250 --> 00:34:18,630
Absolutely.

289
00:34:18,950 --> 00:34:19,490
Thank you.

290
00:34:19,670 --> 00:34:24,150
Pacheco specifically is a unique situation because value water is a control of the project.

291
00:34:24,650 --> 00:34:26,610
So we will have constant evaluation points.

292
00:34:26,610 --> 00:34:34,630
I think the site says decision points because that was by far the for the external projects

293
00:34:34,630 --> 00:34:39,890
that was the best a nomenclature to use. But we'll go more into discussion about what the

294
00:34:39,890 --> 00:34:43,290
timeline is for Pacheco and the really board interaction points and we'll cover those.

295
00:34:45,370 --> 00:34:52,250
I think what you just said is that it's it's the most clear it's it's really the board

296
00:34:52,250 --> 00:34:54,370
to action points for that project.

297
00:34:54,910 --> 00:34:55,310
Yeah, so.

298
00:34:55,970 --> 00:34:56,170
Okay.

299
00:34:56,510 --> 00:34:57,030
Directoration.

300
00:34:57,530 --> 00:34:58,610
Thank you.

301
00:35:03,180 --> 00:35:19,210
Thank you. So I appreciate this. Although, you know, I made a request that was pretty clear. That was an opportunity for us to vote, whether we're going to continue with the dam today.

302
00:35:20,130 --> 00:35:30,370
And once again, I see this decision being pushed down the line and kicked down while tens of millions of dollars are spent on this.

303
00:35:30,370 --> 00:35:37,330
And at the rate of my math says $2.7 million a day, almost a billion dollars a year,

304
00:35:38,270 --> 00:35:44,450
would you do this if this were your own money? Now, I recognize that there is a belief

305
00:35:44,450 --> 00:35:52,590
with among some of my colleagues that first you decide what to do and then you raise the water rates

306
00:35:52,590 --> 00:35:58,710
to fund it, but I just want to point out here. That's not an okay way of making decisions.

307
00:35:58,710 --> 00:36:06,150
We should never have these kinds of options presented to us as if they're all the same price.

308
00:36:07,170 --> 00:36:15,630
It's just, it's irrational, and it is a breach of our fiduciary duty to the taxpayers and to the voters.

309
00:36:16,450 --> 00:36:20,330
It's truly an insult to see it presented this way.

310
00:36:20,890 --> 00:36:27,730
Especially when one of the projects, the project that I had worked so hard to prepare to be able to vote against today,

311
00:36:27,730 --> 00:36:34,870
is truly the most expensive project that this agency has ever contemplated, this agency has no

312
00:36:34,870 --> 00:36:41,710
experience doing anything half as expensive and, you know, that who has cost add-ups

313
00:36:41,710 --> 00:36:47,370
of money mentally, that even, you know, the cost of the litigation I was told by, you

314
00:36:47,370 --> 00:36:57,710
know, as it by leadership, you know, each delay is costing $100 million, just caused by the

315
00:36:57,710 --> 00:37:02,790
Can you put those decisions the different reservoirs slide again?

316
00:37:04,090 --> 00:37:04,470
No, no, no.

317
00:37:04,510 --> 00:37:05,210
That one you had.

318
00:37:05,430 --> 00:37:06,490
Can you go back to that please?

319
00:37:06,630 --> 00:37:07,110
There you go.

320
00:37:07,910 --> 00:37:13,290
So, I actually know the answer to some of the questions asked by, you know, my colleague, director

321
00:37:13,290 --> 00:37:18,470
Shua, how many water districts are involved in those for caros?

322
00:37:18,910 --> 00:37:20,450
Well, I count at least seven.

323
00:37:21,630 --> 00:37:23,610
And because we sit on that JPA.

324
00:37:23,610 --> 00:37:32,610
Now, and as to sites, gosh, I mean anywhere between 7 and 20, I mean these numbers are available.

325
00:37:33,210 --> 00:37:35,410
I mean, I just did a quick Google search for sites.

326
00:37:35,850 --> 00:37:40,310
And by the way, the cost of sites is approximately the same cost as Pacheco.

327
00:37:41,270 --> 00:37:49,310
Now, that cost divided by 20 agencies versus that cost with just us, most people would just walk away.

328
00:37:49,310 --> 00:37:54,690
They wouldn't say, oh, let's get to 60% before walking away.

329
00:37:55,490 --> 00:37:58,930
I mean, seriously, there aren't exit ramps.

330
00:37:59,010 --> 00:38:03,770
Every time that we continue down this path, this path is spending billions of dollars

331
00:38:03,770 --> 00:38:04,890
of taxpayer money.

332
00:38:05,190 --> 00:38:06,590
We're taking an on ramp.

333
00:38:07,710 --> 00:38:09,450
Weeding is not cost free.

334
00:38:09,830 --> 00:38:11,730
We even could cost us a billion dollars.

335
00:38:12,550 --> 00:38:19,290
Once we get those EPA loans, the interest starts, and that interest at

336
00:38:19,290 --> 00:38:24,410
at the rate given us an outdated lower rate than what we get,

337
00:38:24,830 --> 00:38:30,110
amounted to 300 amounted to 3 billion at that rate.

338
00:38:30,370 --> 00:38:32,990
Now it could be 3.5 billion.

339
00:38:33,830 --> 00:38:35,750
Continuing is not cost-free.

340
00:38:36,310 --> 00:38:37,550
We need to compare prices.

341
00:38:37,850 --> 00:38:40,590
And we're not telling you right now is that each and every one

342
00:38:40,590 --> 00:38:46,650
of these storage options is as much as little as literally 5%

343
00:38:46,650 --> 00:38:54,110
cost of a Chaco. And I know you're going to present agencies that might be interested, but

344
00:38:54,110 --> 00:39:01,710
having done work negotiating with large deals for my entire 30-year career, I can tell you

345
00:39:01,710 --> 00:39:07,910
that when no one's interested at a $750 million price tag, no one's going to be interested

346
00:39:07,910 --> 00:39:13,930
at a $6 billion with interest or $6.5 with interest, not including mitigations price tag.

347
00:39:13,930 --> 00:39:17,790
That isn't how it works, it's just not how it works.

348
00:39:18,910 --> 00:39:21,150
And I was pretty, you know, I know we're going to get to prices,

349
00:39:21,450 --> 00:39:26,330
but how dear we discuss these options without putting price tags

350
00:39:26,330 --> 00:39:28,610
without putting costs in front of it.

351
00:39:29,330 --> 00:39:31,270
I'll talk more about costs later.

352
00:39:31,950 --> 00:39:33,890
But when one of my colleagues asks,

353
00:39:34,250 --> 00:39:37,290
how many agencies share in most of the carols,

354
00:39:37,830 --> 00:39:39,790
I would have expected the answer to be pretty quick.

355
00:39:40,290 --> 00:39:42,190
Seven, because we're one of them,

356
00:39:42,190 --> 00:39:43,510
And that's not too many to count.

357
00:39:46,260 --> 00:39:46,800
Thank you, Director.

358
00:39:48,200 --> 00:39:50,920
So I have a question for you.

359
00:39:51,200 --> 00:39:59,820
On the examples of Lasvicheros and Chaco, the of CISC sites, these are all pretty much.

360
00:40:01,760 --> 00:40:07,220
Collaborative organizations and water districts that are joining in to fund these. Also, I understand that we are also

361
00:40:07,220 --> 00:40:15,660
be a support of a be a CISC, sites reservoir, at an entry level, to pretty much reserve a position to have water supply in the future.

362
00:40:16,060 --> 00:40:25,320
My pretty much correct on that, and we do that pretty much on all sort facility projects up and down the state where we can invest in these projects to secure water for our

363
00:40:25,320 --> 00:40:30,420
in constituents that we represent. Is that pretty accurate or you are deported?

364
00:40:31,120 --> 00:40:33,620
All of these projects are still going through the development process.

365
00:40:33,900 --> 00:40:37,300
And we are involved at various stages in order to keep our options open.

366
00:40:37,620 --> 00:40:41,740
So that when we do ultimately select this, we do projects and others may fall out.

367
00:40:42,120 --> 00:40:43,560
We have the opportunity to participate.

368
00:40:44,260 --> 00:40:47,640
We are participating at various levels in all of the different projects.

369
00:40:48,280 --> 00:40:52,560
So our costs and storage options are variable depending on the project.

370
00:40:52,560 --> 00:41:06,000
And the reason why we do that is, at this particular point in time, we import about over 50% of our water source coming from the Delta from the snow pack and these water source facilities that are north of the Delta as well, is that pretty much accurate?

371
00:41:06,040 --> 00:41:08,960
Correct, if I recall correctly, it's 55% of our water is imported.

372
00:41:09,340 --> 00:41:19,880
Okay, so Pacheco would offer a positive impact for additional water storage for our region, our area, and less than the importance of having to import water in dry years.

373
00:41:19,880 --> 00:41:24,780
my correct on that. Correct, ultimately we in wet years we would store water locally, which would

374
00:41:24,780 --> 00:41:28,740
help to relieve some of the import and that will be on one of the benefits slide coming forward,

375
00:41:29,240 --> 00:41:33,160
but would relieve some of the import demands in future dry years. Thank you for

376
00:41:33,160 --> 00:41:37,260
appreciate that. Continue with your report. I have a question.

377
00:41:37,660 --> 00:41:40,820
Well, I'm sorry, Tony, I didn't see you. Yeah, just a couple of quick questions. One is,

378
00:41:41,920 --> 00:41:49,560
on this particular slide, in 2023 you have a portable reuse of the carols ground.

379
00:41:49,880 --> 00:41:52,620
Do we have final costs on any of these?

380
00:41:53,180 --> 00:41:54,360
Unfortunately, no we do not.

381
00:41:54,700 --> 00:41:56,820
As they are still going through the evaluation process,

382
00:41:57,480 --> 00:41:59,480
the cost have not been finalized.

383
00:42:00,140 --> 00:42:03,900
A lot of the projects are still to be kind of fleshed out.

384
00:42:04,000 --> 00:42:06,660
Loast for care specifically, there's a component that's the transfer of

385
00:42:06,660 --> 00:42:09,240
Bethany pipeline that's still early in the design process,

386
00:42:09,460 --> 00:42:11,440
so that cost doesn't need to be short up.

387
00:42:11,800 --> 00:42:15,000
BFSIST raise is very early in terms of preliminary.

388
00:42:15,700 --> 00:42:18,620
There are costs associated with PG&E in highway

389
00:42:18,620 --> 00:42:24,220
elements that have not been updated in a while. So I would expect most of the costs of the

390
00:42:24,220 --> 00:42:31,100
projects listed to change. But they're still being considered by us. Correct. We don't do

391
00:42:31,100 --> 00:42:38,020
all the exact costs. Right. As the Chairman mentioned, we like to keep our options open by investing

392
00:42:38,020 --> 00:42:44,960
at a minimal level to keep our as these projects mature. Some may actually die under their own weight.

393
00:42:44,960 --> 00:42:50,000
So we do want to, for a lack of a better cliche, not pull all of our eggs in one basket.

394
00:42:50,620 --> 00:42:56,240
We like that diversified opportunity just to future proof against anything that may happen that we don't foresee.

395
00:42:56,700 --> 00:42:59,080
I would like sort of agree on that approach.

396
00:43:01,220 --> 00:43:06,440
The, I was looking at the strategy to expand what a conservation is reused.

397
00:43:06,980 --> 00:43:12,420
I hear you talk about conservation, including stormwater capture.

398
00:43:12,420 --> 00:43:21,780
Could you tell us a little bit more about what we expect to look at in, you know, where we are and specifically stormwater capture?

399
00:43:22,400 --> 00:43:27,640
Yeah, so stormwater capture was one of the no regrets policies that the board adopted.

400
00:43:28,740 --> 00:43:33,140
Right now in the water supply master plan we estimated at about 1,000 acre feet.

401
00:43:33,140 --> 00:43:37,300
And it includes things like the flat mesh

402
00:43:37,300 --> 00:43:39,780
aquifer recharge, which we're doing

403
00:43:39,780 --> 00:43:43,260
and feasibility study on, things like that.

404
00:43:44,280 --> 00:43:47,060
Our, you know, the best places to capture stormwater

405
00:43:47,060 --> 00:43:48,480
are our reservoirs already.

406
00:43:49,980 --> 00:43:53,580
So in terms of water supply benefits for sort of urban stormwater,

407
00:43:53,740 --> 00:43:57,080
they are very small, because they're not overlaying,

408
00:43:57,080 --> 00:43:58,320
you know, where we would recharge.

409
00:43:58,880 --> 00:44:01,000
But we are investigating various opportunities

410
00:44:01,000 --> 00:44:06,220
to do stormwater capture, but we don't expect those benefits to be that large.

411
00:44:09,580 --> 00:44:10,380
Dr. Cassettos.

412
00:44:14,320 --> 00:44:15,160
Yeah, thank you, Chair.

413
00:44:15,680 --> 00:44:19,780
John, would you rather go through all this, because things became to my head, not to

414
00:44:19,780 --> 00:44:22,500
want to jump to gun like this, but we're talking water supply right now.

415
00:44:23,060 --> 00:44:26,660
And then, of course, flood came to my mind real quick, because you and I have had a

416
00:44:26,660 --> 00:44:31,220
immediate conversation that you contacted the Sahara water and all the folks there

417
00:44:31,220 --> 00:44:31,900
really concerned.

418
00:44:31,900 --> 00:44:40,120
So, to staff and then jump and in before we get to these other areas, what would be the impact if we had

419
00:44:40,120 --> 00:44:47,220
Pacheco right now, 140 Hater Feed, with all that water going to sop Lake, going to Bajaro, what would be the impact?

420
00:44:47,460 --> 00:44:59,980
In other words, it would be less and most likely they wouldn't flood. I know you don't have a crystal ball, but when I go up at Director Bell and John, we do constantly in the go up and in the month up there in Las Manus, we see all this water flowing.

421
00:45:00,000 --> 00:45:09,200
I know if we had the dam would be recaptured. So it doesn't have the impact that a floody right now that's going on. To this disadvantage community, there's been wrong since 1948.

422
00:45:11,040 --> 00:45:27,380
So we do have a future slide that goes into some of the incidental flood protection benefits. I don't want to spoil it for you, but there are some flows that we have currently modeled. Ultimately, we would all depend on operation of the reservoir in the situation that we're in right now, coming off of three consecutive dry years, there would be more space available to attenuate flows.

423
00:45:27,380 --> 00:45:31,880
So, it could have a significant impact in decreasing downstream flooding.

424
00:45:32,420 --> 00:45:34,240
Thank you.

425
00:45:34,320 --> 00:45:35,200
Thank you.

426
00:45:35,280 --> 00:45:35,940
The director's way?

427
00:45:37,320 --> 00:45:38,000
Thank you, Chair.

428
00:45:38,560 --> 00:45:42,620
Just a quick follow-up on the stormwater capture.

429
00:45:44,340 --> 00:45:51,700
The water conservation and demand management committee has been receiving regular update on this study.

430
00:45:51,700 --> 00:45:57,340
So maybe it's a good idea for the whole board to listen to that.

431
00:45:58,080 --> 00:46:03,060
And particularly now that every time there's a heavy storm,

432
00:46:03,600 --> 00:46:08,580
this topic comes up, people would ask me about how about stormwater capture.

433
00:46:09,360 --> 00:46:11,980
As if we don't know, there's such a thing called stormwater capture,

434
00:46:12,380 --> 00:46:13,900
but it doesn't matter.

435
00:46:14,520 --> 00:46:16,500
But we're studying it.

436
00:46:17,260 --> 00:46:20,940
And so a briefing for the whole board will be good.

437
00:46:20,940 --> 00:46:26,900
Yes, we plan to bring it, you know, the study to the water conservation demand management committee again and then to the football.

438
00:46:27,360 --> 00:46:33,320
We also have discussions through the Agwater Advisory Committee with the agriculture community on storage as well.

439
00:46:33,740 --> 00:46:36,180
So we're ongoing with those discussions.

440
00:46:36,300 --> 00:46:37,400
Director Eisenberg.

441
00:46:41,990 --> 00:46:47,130
So again, I just wonder how prepared you were for this meeting.

442
00:46:47,590 --> 00:46:49,810
Why do I have these answers and you don't?

443
00:46:49,810 --> 00:46:59,390
The cost, the stated current-stated cost of low-specaros, that is being shared between seven agencies, is 900 million.

444
00:47:00,090 --> 00:47:04,830
That is a sec, that is a fraction of what Pacheco costs.

445
00:47:05,130 --> 00:47:15,870
And that is relevant because these costs, I wait till my colleague is, these costs will have an impact on our ratepayers.

446
00:47:15,870 --> 00:47:17,990
how much they are forced to pay for water.

447
00:47:18,490 --> 00:47:19,610
This cost is important.

448
00:47:20,210 --> 00:47:22,810
Additionally, sites is 5.2 billion,

449
00:47:23,530 --> 00:47:27,190
and again, it's divided between possibly 20 agencies.

450
00:47:28,850 --> 00:47:32,230
There was a slide that I saw not on our materials,

451
00:47:32,770 --> 00:47:34,310
but at someone else's materials

452
00:47:34,310 --> 00:47:38,810
that actually compared the cost per acre

453
00:47:39,670 --> 00:47:42,930
of stored water on these different reservoirs.

454
00:47:42,950 --> 00:47:45,150
And that would have been a very helpful

455
00:47:45,150 --> 00:47:52,330
saying for you all to present. And I'm looking for it in my materials. I was really hoping to see it there

456
00:47:52,330 --> 00:48:00,130
because that's important. Yes, okay, we agree. We need outdoor storage. Got it. But should we be paying, you know,

457
00:48:00,130 --> 00:48:09,050
a hundred times more on a per acre basis for Pacheco, then we're pay, then we would pay if we have more storage in

458
00:48:09,050 --> 00:48:18,330
for kernels. So really, and those for kernels may actually be closer to us. So this is, you

459
00:48:18,330 --> 00:48:24,250
know, price is important, you know, when we go to the grocery store and we see two gallons

460
00:48:24,250 --> 00:48:29,330
of milk, of course I'm a vegan, I don't have milk, but you know, for my family with a two

461
00:48:29,330 --> 00:48:37,990
gallons of orange juice, and one of them is $3, and one of them is $50. We don't just say,

462
00:48:37,990 --> 00:48:45,430
We need orange juice. I'm going to spend $50. We actually look at those two gallons of orange juice differently

463
00:48:47,610 --> 00:48:53,190
So it's relevant and it's extremely important how much money we're spending

464
00:48:53,190 --> 00:48:56,360
Let's pretend this is our money because it is our money

465
00:48:57,190 --> 00:49:01,090
You know what we spend here is relevant and there should be price tags

466
00:49:01,090 --> 00:49:06,890
So maybe you know once I find this chart, maybe you could put that chart up to see the

467
00:49:06,890 --> 00:49:10,750
Because I assume you don't have that chart prepared for us.

468
00:49:12,090 --> 00:49:16,310
At this time, that is part of the water supply master plan for folio, which is a separate answer.

469
00:49:16,310 --> 00:49:18,650
So the answer is no. You don't have it in for us.

470
00:49:18,930 --> 00:49:20,630
So that would have been really helpful.

471
00:49:21,210 --> 00:49:23,790
So we can decide when we go to the grocery store.

472
00:49:23,970 --> 00:49:27,090
Whether we want to spend $50 a gallon for orange juice,

473
00:49:28,190 --> 00:49:32,510
or maybe buy more of the store brand for $3 a gallon.

474
00:49:32,510 --> 00:49:39,890
So, again, we can't look at this without the context of cost and these numbers are available.

475
00:49:40,810 --> 00:49:46,730
We know that this is the most expensive storage by many factors than any other storage.

476
00:49:47,110 --> 00:49:51,010
Otherwise, other agencies would want to join us in this.

477
00:49:51,910 --> 00:49:59,830
So, you know, I'm not very confident in this entire presentation if you made your decisions without any consideration of cost.

478
00:50:04,440 --> 00:50:06,160
Thank you. Thank you. Director Schwain?

479
00:50:07,660 --> 00:50:08,720
Are you okay? Director of Commander?

480
00:50:11,770 --> 00:50:19,730
Thank you, Mr. Chairman. Just one of the, you know, the, um, the, um, the recycled committee is also

481
00:50:19,730 --> 00:50:28,410
looking to stormwater capture in the south. Uh, and one of the things that that I recall is that, um,

482
00:50:28,410 --> 00:50:47,970
The district did approach a few years ago, Mayor Sam Ricardo regarding stormwater capture and some kind of partnership with the city since they really are in charge of the sewer system.

483
00:50:47,970 --> 00:50:56,050
And obviously that's where the most stormwater's capture, and till we go to some other kind of storage.

484
00:50:57,870 --> 00:51:06,710
Are we pursuing anything close to a partnership with the city or other cities regarding stormwater capture?

485
00:51:08,090 --> 00:51:17,410
We are partnering with cities on stormwater capture by primarily for its other benefits, like the flood peak reduction and water quality benefits.

486
00:51:18,310 --> 00:51:41,310
I think what you're talking about is maybe taking into the purification center, so there was an analysis done by San Jose about the cost of that, and we can certainly include it in our discussions following the execution of the letter of intent regarding purified water, so, but yeah.

487
00:51:41,470 --> 00:51:45,930
I mean you had mentioned that before at the Recycle Water Committee that you would like that included and we will.

488
00:51:45,930 --> 00:51:53,530
Great, I did want to mention to the Board that the committee, after the Board's discussion,

489
00:51:53,790 --> 00:51:57,310
we would respect to D-SAL and also Stormwater Capture.

490
00:51:57,830 --> 00:52:05,550
They included as part of our work plan this year and we are looking at getting a very serious

491
00:52:05,550 --> 00:52:11,810
look at both in the next few months and then come back to the Board to catch you up with

492
00:52:11,810 --> 00:52:18,550
and then continue our discussions on both both of those on diesel and also on stormwater capture

493
00:52:18,550 --> 00:52:24,530
so that we can coordinate with the other committees and perhaps approach some of our

494
00:52:24,530 --> 00:52:29,970
possible partners once again to see if there's something that we could do to partner on some of these

495
00:52:29,970 --> 00:52:37,170
things. But I think with respect to conservation, it's very important. The city of Los Angeles and

496
00:52:37,170 --> 00:52:48,270
and other cities in California, but with the lead in being made by the city of Los Angeles who

497
00:52:48,270 --> 00:52:56,510
like the city's in San Jose and up here control the stormwater capture system that they have been

498
00:52:56,510 --> 00:53:04,110
working very diligently on stormwater capture and then trying to put them into their recycled

499
00:53:04,110 --> 00:53:10,110
system and so on and so I want to see us look look at that also some projects that they

500
00:53:10,110 --> 00:53:20,630
have in this area working with school districts with their large area of 10 or more acres to

501
00:53:21,150 --> 00:53:29,250
have systems under those those fields so that they can capture water and then see how that can then

502
00:53:29,250 --> 00:53:35,610
We incorporated into the recycle system, the purification system.

503
00:53:36,050 --> 00:53:41,390
So those are things that we want to look at when we talk about this area of conservation

504
00:53:41,390 --> 00:53:42,630
and stonewater capture.

505
00:53:43,390 --> 00:53:47,150
And just I think it was yesterday that day before Governor Newsom announced that they're

506
00:53:47,150 --> 00:53:52,970
going to be capturing more of the stormwater for groundwater and the central value.

507
00:53:53,790 --> 00:53:56,430
So we're all talking pretty much on the same messaging at this point.

508
00:53:56,990 --> 00:53:57,770
So, Director Eisenberg?

509
00:53:57,770 --> 00:53:58,510
I

510
00:54:00,940 --> 00:54:06,640
just want to say how much I share my colleagues enthusiasm to explore storm water capture.

511
00:54:07,760 --> 00:54:19,520
And although I know that desalination is still considered not ready for prime time, purification of wastewater is there.

512
00:54:19,520 --> 00:54:25,740
So the end is actually enabled by the current by current California law.

513
00:54:25,900 --> 00:54:30,000
There's systems for it, Orange County, Republican County is hidden in it either park.

514
00:54:30,760 --> 00:54:32,060
So, you know, we can be like them.

515
00:54:32,840 --> 00:54:36,220
But in particular, I just, you know, I know that my colleague,

516
00:54:37,360 --> 00:54:40,880
Director Bell, I always want to say Senator Bell, I know many of this too.

517
00:54:41,340 --> 00:54:48,080
Has been very, has been asking a lot of questions, so really, sorry, and this is about how,

518
00:54:48,080 --> 00:54:57,440
You know, should we get these 1.5 plus billion dollar loans from the EPA, you know, how

519
00:54:57,440 --> 00:54:59,980
that's really going to put a hamper on our ability to...

520
00:55:00,000 --> 00:55:09,140
So, for these other projects that were really excited about, I mean, that's a lot of debt to carry, you know, especially at today's interest rates.

521
00:55:09,540 --> 00:55:17,960
I mean, again, at a 650 to $800 million price tag, it's sure I could totally get what people were enthusiastic about this program.

522
00:55:18,460 --> 00:55:23,200
Yeah, I mean, it made a lot of sense, you know, it's offered a lot of benefits for that cost.

523
00:55:23,200 --> 00:55:28,920
I have never seen a price change, a cost change so dramatically upward, without any

524
00:55:29,420 --> 00:55:30,840
consequent loss and enthusiasm.

525
00:55:32,000 --> 00:55:36,000
You know, it's just, you know, this isn't the same project anymore when it costs so much.

526
00:55:36,540 --> 00:55:44,040
Anyway, so I think it's really, really important how acquiring, you know, those types of loans,

527
00:55:44,160 --> 00:55:50,880
that size of loans could make it much harder for us to be the leader that we really should be.

528
00:55:50,880 --> 00:55:58,760
in technology and in sustainable methods and in lower cost methods of increasing our water supply.

529
00:55:59,360 --> 00:56:01,960
You know, we, this is silicon-freaking valley.

530
00:56:02,520 --> 00:56:05,920
You know, we have this, you know, we have a history of innovation.

531
00:56:06,500 --> 00:56:10,880
And again, you know, at a much lower price tag, sure, this damn, sure.

532
00:56:11,060 --> 00:56:13,020
You know, it's, it's wholly different proposition.

533
00:56:13,420 --> 00:56:16,220
But I hope that you explore and maybe that'll be in the next slide.

534
00:56:16,220 --> 00:56:20,520
But again, I don't think we should be separating costs from all this.

535
00:56:20,520 --> 00:56:27,920
But I hope maybe you'll explore like how this type of bottleneck is going to make it much harder

536
00:56:27,920 --> 00:56:34,660
for us to do all the things that so many of us are so passionate to do. And just one of the things.

537
00:56:34,860 --> 00:56:39,880
So I share, I very much share my colleagues enthusiasm for flood protection.

538
00:56:41,180 --> 00:56:48,140
My district has been really suffering for floods and under floods with a lot of people losing their

539
00:56:49,300 --> 00:56:54,300
They're families, generational homes, and I know that's the case for so many of us in this

540
00:56:54,300 --> 00:56:54,660
room.

541
00:56:54,660 --> 00:57:02,440
And it is so heartbreaking and really true, and I maybe will wait, but maybe because one

542
00:57:02,440 --> 00:57:04,720
of these people are people I'm trying to direct this to.

543
00:57:05,440 --> 00:57:09,740
So I think we all really share this passion for protecting our communities from floods.

544
00:57:10,220 --> 00:57:16,420
But what I keep hearing time and time again is that the flood protection of Pacheco is an

545
00:57:18,300 --> 00:57:23,260
incidental, you know, result of it. In other words, flood protection is not the point.

546
00:57:24,080 --> 00:57:29,000
flood protection is not the goal, the purpose of the stand. So while we spend,

547
00:57:31,110 --> 00:57:32,030
sorry, I really

548
00:57:32,030 --> 00:57:37,690
hate being, I really, I work really hard to prepare for meetings that it's kind of just when people

549
00:57:37,690 --> 00:57:43,870
are talking, well, I'm talking, it just kind of, I don't like it. Anyway, so, you know, this project

550
00:57:43,870 --> 00:57:46,330
will incidentally protect communities from floods.

551
00:57:46,490 --> 00:57:48,630
But when we do this and take out these loans,

552
00:57:49,430 --> 00:57:51,370
that is going to prevent us from doing projects

553
00:57:51,370 --> 00:57:55,110
that are intended to protect our communities from floods.

554
00:57:55,270 --> 00:57:56,130
Intended to.

555
00:57:56,610 --> 00:58:01,450
Why should we value an incidental benefit of flood protection

556
00:58:01,450 --> 00:58:05,410
over an intentional benefit of flood protection?

557
00:58:05,870 --> 00:58:08,630
Flood protection is something we're supposed to do

558
00:58:08,630 --> 00:58:10,230
and that we have been doing

559
00:58:10,230 --> 00:58:12,370
but that we really need to do more of.

560
00:58:12,370 --> 00:58:20,410
And when we invest in projects for an incidental benefit of flood protection, we're not really doing our best job.

561
00:58:21,130 --> 00:58:30,890
So given that flood protection is not any of the stated purposes of this dam, you know, I think we really need to be honest here.

562
00:58:31,410 --> 00:58:41,190
That we could do a lot better job protecting our communities from floods with a different project whose goal is to do exactly that.

563
00:58:41,190 --> 00:58:42,190
Thank you.

564
00:58:42,870 --> 00:58:43,570
Do I trust you, Mayor?

565
00:58:46,590 --> 00:58:47,270
Thank you.

566
00:58:48,210 --> 00:58:53,330
You just asked me if we should move on, but I just had a question with respect to

567
00:58:53,330 --> 00:58:55,530
strategy one.

568
00:58:56,650 --> 00:58:58,810
Treatment, treatment plan improvements.

569
00:58:59,930 --> 00:59:05,610
I know that direct incentives tonight have raised this over the last 20 years.

570
00:59:06,150 --> 00:59:10,870
That sometimes, some day, South County is going to need to build some water treatment

571
00:59:10,870 --> 00:59:20,050
plants in South County, and we've always said that now's the time to plan on acquiring

572
00:59:20,050 --> 00:59:26,290
property there for that purpose rather than waiting until we really needed and then

573
00:59:26,290 --> 00:59:36,690
end up with big bidding war going on down there with landowners, and so it's in here

574
00:59:36,690 --> 00:59:43,490
strategy, it's something that we think makes sense, and so I wanted where we are on that

575
00:59:43,490 --> 00:59:48,790
if we're making any progress, if we're talking about it or what's going on with that.

576
00:59:49,130 --> 00:59:54,370
Well, let me respond to that since I had a meeting with the mayor of Morgan Hill, the new mayor

577
00:59:54,370 --> 00:59:59,970
work in health. And he is all in, and in a state of...

578
01:00:00,000 --> 01:00:11,620
The city announced message last week that we were also, he spent 15 to 20 minutes talking about water resources for South County, specifically the city of Morgan Hill.

579
01:00:12,080 --> 01:00:17,320
Tonight, I'm attending Ville Royce State of the city address, and I will be meeting with the mayor shortly thereafter.

580
01:00:18,320 --> 01:00:27,760
So I will say this, that money has always been the issue. We've been looking at this now since I've been, was elected to this board, and it continues to be.

581
01:00:27,760 --> 01:00:31,180
But what I've heard from the mayor is that they're open to a pipeline.

582
01:00:32,140 --> 01:00:33,100
They're open to anything.

583
01:00:33,320 --> 01:00:38,680
We all learned that there was enough waste material to service both the city of Gilroy

584
01:00:38,680 --> 01:00:40,580
and the city of Morgan Hellan.

585
01:00:40,820 --> 01:00:44,900
Once that's included, the unincorporated area of San Martín in District 1,

586
01:00:44,900 --> 01:00:47,580
South County also are going to want to be engaged at some point.

587
01:00:48,520 --> 01:00:52,000
So it's not out of reality to consider a pipeline.

588
01:00:52,620 --> 01:00:55,440
From our water purification facilities that we have in San Jose,

589
01:00:55,440 --> 01:01:02,440
cell 2 and that might be more cost effective. Don't know yet. So it's very much in the conversation and it's very much part of the conversation

590
01:01:02,440 --> 01:01:05,840
I'm having with the leadership of South County.

591
01:01:06,020 --> 01:01:11,020
Pregs stuff might have an additional response to director of some areas come.

592
01:01:11,560 --> 01:01:14,540
Sure, it's not really about treatment plant maybe far.

593
01:01:14,660 --> 01:01:21,060
Import of water supply, but we're also looking at purification facilities in South County while we do use

594
01:01:21,060 --> 01:01:27,340
most of the wastewater in the summer peak, you know, if there was storage or more efficient usage,

595
01:01:28,340 --> 01:01:31,540
we could, you know, we're looking at all of those things as part of our efforts with our

596
01:01:31,540 --> 01:01:38,640
South County partners. Okay, so we wanted, okay, I didn't see your name, but you have to do it for

597
01:01:38,640 --> 01:01:52,170
excuse me. You got it? Yeah, thank you. Thank you, Chair. I want to thank Dr. Esther Maris

598
01:01:52,170 --> 01:01:59,950
question, but I was soon to raise it later in this presentation. It's about South

599
01:01:59,950 --> 01:02:07,490
County's wildest supply. And my recollection is at the earlier version, I think,

600
01:02:07,490 --> 01:02:22,510
of the or map process that we talked about potential purchase of land in South County for

601
01:02:22,510 --> 01:02:29,290
recharge capacity because South County right now it's a lot of supplies completely dependent

602
01:02:29,290 --> 01:02:36,190
upon groundwater supply and at the beginning of this drought I was actually very worried about

603
01:02:36,190 --> 01:02:40,190
on the groundwater, basically in South County, I wore less about

604
01:02:40,190 --> 01:02:41,590
what's County, but South County.

605
01:02:43,070 --> 01:02:48,670
So there's either that or treatment plan or recycled or purified,

606
01:02:48,970 --> 01:02:50,210
we don't remember what it meant.

607
01:02:50,450 --> 01:02:54,870
And that's also laid out in the water reuse

608
01:02:54,870 --> 01:02:56,270
master plan, I think.

609
01:02:57,050 --> 01:03:01,730
So these things, I mean, we have many building blocks that,

610
01:03:01,850 --> 01:03:04,950
and then the difficulty is always that,

611
01:03:04,950 --> 01:03:13,890
Now, do we decide from all these building blocks, and it's the most technical, technical

612
01:03:13,890 --> 01:03:25,350
sound and financial, the sound combination of several blocks so that we can meet our

613
01:03:25,350 --> 01:03:25,710
demand?

614
01:03:26,230 --> 01:03:33,570
But I just want to say that, it's not like we don't know these challenges, we do know, and

615
01:03:33,570 --> 01:03:38,810
and we're conscientiously working on these things, and then these blocks, they're moving

616
01:03:38,810 --> 01:03:44,070
because of outside environment, because of political reasons, because of many other reasons.

617
01:03:44,990 --> 01:03:51,150
But our job is to plan for the future, and then we're doing that on the daily basis.

618
01:03:53,380 --> 01:03:54,080
Thank you.

619
01:03:54,460 --> 01:03:54,680
Okay.

620
01:03:55,000 --> 01:03:56,340
Now we're going to move on with our report.

621
01:03:56,840 --> 01:03:57,420
Do we have a...

622
01:03:57,420 --> 01:03:57,980
Do I cry, Senator?

623
01:03:58,080 --> 01:03:59,000
Did you want to...

624
01:03:59,000 --> 01:03:59,320
Okay.

625
01:04:00,000 --> 01:04:01,040
Excuse me.

626
01:04:01,540 --> 01:04:02,360
Continue on?

627
01:04:02,960 --> 01:04:03,680
My pleasure.

628
01:04:03,680 --> 01:04:08,220
We will be going into the background section as well as the benefits, partnerships, and I believe

629
01:04:08,680 --> 01:04:10,580
we'll see how we go.

630
01:04:11,580 --> 01:04:15,140
Just to refresh everyone who may not be in the audience right now,

631
01:04:15,380 --> 01:04:19,580
particular reservoirs about seven to nine miles, as the crow flies from tenuous reservoir,

632
01:04:19,960 --> 01:04:23,100
depending on the water level, right now would be closer to seven.

633
01:04:24,580 --> 01:04:29,120
The public benefits were enumerated in our application to the CWC in 2017.

634
01:04:29,120 --> 01:04:37,280
The environmental benefits were listed as enhanced the habitat for federally listed and threatened steelhead, enhanced the water supply to Delta Refuges.

635
01:04:38,360 --> 01:04:41,300
We also have increased water supply reliability and emergency supply.

636
01:04:41,880 --> 01:04:46,100
We would resolve the problem that we currently have with the San Luis low point.

637
01:04:46,420 --> 01:04:51,420
And then it would incidentally reduce flooding along Chaco Creek in disadvantaged communities.

638
01:04:52,560 --> 01:04:59,040
Just an excerpt from the California Department of Fish and Wildlife in the determination that there was ecosystem benefit.

639
01:05:00,760 --> 01:05:13,840
So, what was included in their letter to us back in that finding? Just to refresh the board's memory, we were actually the top rated of the prop one projects. I'm going to came to a benefit ratio perspective.

640
01:05:15,280 --> 01:05:22,820
Emergency response to this letter from the California Department of Water Resources, affirming that we do have emergency response of benefits from the project.

641
01:05:22,820 --> 01:05:30,280
And then in terms of Director Santos's question in regards to flooding, what you're seeing is a picture in 2017 of the flooding that happened.

642
01:05:30,960 --> 01:05:36,240
Basically, we saw a peak of 15,000 cubic feet per second at the walnut avenue gauge.

643
01:05:37,100 --> 01:05:41,300
As you can see, that area is a disadvantaged community that actually floods quite regularly.

644
01:05:41,440 --> 01:05:45,040
It doesn't take a 2017 event, it doesn't take an event like we had this year.

645
01:05:45,160 --> 01:05:47,500
It floods on average every other year.

646
01:05:47,500 --> 01:05:54,640
So, even though the benefit is incidental in our modeling of the reservoir as an emergency water supply reservoir,

647
01:05:54,840 --> 01:06:00,640
which means it would be full, you still get a 15 to 24 percent average reduction in flows.

648
01:06:01,140 --> 01:06:04,500
Now, coming off of a dry air, as I mentioned, or several dry airs, as I've mentioned,

649
01:06:05,020 --> 01:06:07,640
the probabilities of the reservoir would actually be lower.

650
01:06:08,240 --> 01:06:12,260
And there would actually be more storage space because we are pursuing partnerships.

651
01:06:12,260 --> 01:06:19,900
Our partner agencies made a term in that they use best use for their facility is not as emergency water supply, but ordinary operations.

652
01:06:20,720 --> 01:06:25,260
So depending on that use, there may in fact be more space in the reservoir to blunt flows.

653
01:06:26,280 --> 01:06:30,620
Looking at the incident that happened along the Pahara River where you had the levy breach.

654
01:06:30,740 --> 01:06:36,240
We had some hydrographs that were produced that showed the vast majority of that flow did come from Particle Creek.

655
01:06:36,880 --> 01:06:41,420
So having a way to blunt the flows from Particle Creek, this charges would definitely benefit that community.

656
01:06:43,810 --> 01:06:50,470
We do have some existing partnerships in place with the San Bernardo County Water District.

657
01:06:51,090 --> 01:06:55,610
They currently participate at 2.5% that you have an option to participate up to 10% and of

658
01:06:55,610 --> 01:06:58,990
course the Pacheco Pass Water District who we've entered into an option agreement for

659
01:06:58,990 --> 01:07:00,070
purchase of facilities.

660
01:07:01,870 --> 01:07:06,730
How partners would potentially use the facility unless they're directly connected to our

661
01:07:06,730 --> 01:07:07,310
system?

662
01:07:08,090 --> 01:07:12,750
We would envision most of the uses would come from transfers out of San Luis Resvore, so

663
01:07:12,750 --> 01:07:17,210
it's an exchange of water that's a virtual exchange. So if we did have someone who was perhaps

664
01:07:17,210 --> 01:07:21,590
in Southern California that wanted to partner us with us on this facility, we would use our

665
01:07:21,590 --> 01:07:26,950
allocation in San Luis, trade it with them, and basically park the water that we needed in Pchaco.

666
01:07:30,640 --> 01:07:34,760
Partnership status, because this is always a question. As I mentioned, we are partners with San

667
01:07:34,760 --> 01:07:40,340
Vanita County and Pchaco Passwater District through an MOU. We have received interest and discussed

668
01:07:40,340 --> 01:07:43,420
this with four separate water agencies comprised of 11 members.

669
01:07:44,180 --> 01:07:47,620
We have pending discussions with other agencies in the works,

670
01:07:47,960 --> 01:07:49,800
as well as two letters of interest we receive.

671
01:07:50,340 --> 01:07:53,140
Part of the reason we have not been able to finalize any partner agreements

672
01:07:53,820 --> 01:07:58,760
is that the project is not at a sufficient level to finalize our benefits.

673
01:07:59,280 --> 01:08:01,080
That doesn't even go shaded with the state of California,

674
01:08:01,600 --> 01:08:04,220
through a negotiation of public benefits, as well as the design.

675
01:08:04,440 --> 01:08:05,480
We're at 30%.

676
01:08:05,480 --> 01:08:08,960
We do have a ways to go before we are able to finalize our costs.

677
01:08:08,960 --> 01:08:14,480
And in future slides, I will have a discussion point on what that means in terms of uncertainty,

678
01:08:14,480 --> 01:08:15,840
contingency, and whatnot.

679
01:08:18,290 --> 01:08:21,610
So that's the background section for really quick any questions.

680
01:08:22,950 --> 01:08:23,050
Yes.

681
01:08:24,570 --> 01:08:24,950
I'm sorry.

682
01:08:25,050 --> 01:08:25,630
Do I do I somewhere?

683
01:08:25,890 --> 01:08:26,910
Thank you.

684
01:08:29,600 --> 01:08:29,700
What?

685
01:08:30,960 --> 01:08:31,220
What?

686
01:08:31,220 --> 01:08:31,400
Sorry.

687
01:08:31,480 --> 01:08:32,360
I should you like the report.

688
01:08:33,360 --> 01:08:33,520
Sorry.

689
01:08:34,420 --> 01:08:37,780
What was the price tag on this dam?

690
01:08:37,780 --> 01:08:42,440
when you submitted it to, for, to, for, for pre-promp ones funds.

691
01:08:43,020 --> 01:08:48,940
In 2017, it was priced out $979 million in 2015 dollars, which was per regulation.

692
01:08:49,400 --> 01:08:52,480
Okay, so it was $900 million something.

693
01:08:54,000 --> 01:08:58,040
Now, what you said it was the number one ranked from a benefit ratio.

694
01:08:59,140 --> 01:09:07,760
So the cost has tripled, quadrupled, quintupled, or sextupled, if you include the

695
01:09:07,760 --> 01:09:12,000
interest, have the benefits also increased by that much?

696
01:09:12,460 --> 01:09:14,700
The benefits remain the same as calculated by the state of California.

697
01:09:16,500 --> 01:09:20,080
So, congratulations at the price tag of $900 million.

698
01:09:20,360 --> 01:09:30,420
This was the top-rated program on a benefit to cost ratio basis, top-benefit to cost ratio,

699
01:09:30,420 --> 01:09:40,940
But when the cost went up significantly, while the benefit stayed the same, why do you think?

700
01:09:41,260 --> 01:09:44,700
So therefore making a math, I love math.

701
01:09:45,820 --> 01:09:49,380
So maybe the ratio before was it had to be above one, right?

702
01:09:49,380 --> 01:09:52,800
So maybe the ratio before was 1.2.

703
01:09:53,160 --> 01:09:57,200
But now you take that denominator, right?

704
01:09:57,200 --> 01:09:59,980
and you have to multiply it by 4, let's say.

705
01:10:00,000 --> 01:10:15,300
Now, the ratio is only 0.3. So, do you think it's still at this price tag? Would have been ranked number 1 from a cost to benefit analysis?

706
01:10:16,340 --> 01:10:29,180
I apologize, Director. I may have mispoke in saying that it was the number 1 rated from a cost benefit ratio. It was the number 1 rated from a total cost to project awarded the maximum condition eligibility determination by the state of California.

707
01:10:29,180 --> 01:10:36,600
However, to answer your question, the cost benefit ratio right now is, this is a policy decision

708
01:10:36,600 --> 01:10:37,700
that's being made by the board.

709
01:10:38,000 --> 01:10:42,160
It is not for me to determine whether the product sufficiently benefits value water.

710
01:10:42,360 --> 01:10:49,360
So you're telling me that we decided, even though this is our meeting to decide, so actually

711
01:10:49,360 --> 01:10:52,800
we didn't tell you what we thought about a much lower cost benefit analysis.

712
01:10:53,440 --> 01:10:57,980
I showed in it, I would have told you that it has to have more benefits than it has cost.

713
01:10:57,980 --> 01:11:01,580
I think most people, I think the boardoff would have said that.

714
01:11:01,820 --> 01:11:04,860
We expect the benefit to be bigger than the cost.

715
01:11:06,580 --> 01:11:11,820
So, you know, I don't think the board ever told you to spend, you know,

716
01:11:11,960 --> 01:11:14,920
all this, these billions of dollars in a, in a project,

717
01:11:15,040 --> 01:11:17,400
where the cost was so much greater than the benefit.

718
01:11:17,740 --> 01:11:18,300
I really don't.

719
01:11:18,800 --> 01:11:22,460
So anyway, I just really, every time I hear that it was the top-rated program

720
01:11:22,460 --> 01:11:25,880
at literally one quarter of the price, one quarter,

721
01:11:25,880 --> 01:11:34,300
maybe to one tenth of the price? It gives me hives because again it really depends on the price.

722
01:11:34,480 --> 01:11:40,640
These ratings depend on the price. They are not price, agnostic. And neither should we be.

723
01:11:41,300 --> 01:11:46,100
Additionally, what was that other point you just made that I thought? Can you look at your most

724
01:11:46,100 --> 01:11:56,740
recent slide. Can I see it? Please. Oh yes. So, for water agencies are interested. Express

725
01:11:56,740 --> 01:12:02,840
interest. In what form do they express interest? We had physical discussions with the water

726
01:12:02,840 --> 01:12:06,960
agencies and they said to please keep them informed because they would potentially want to partner

727
01:12:06,960 --> 01:12:11,480
with us in the future on participation in the reservoir. So basically, by physical conversation

728
01:12:11,480 --> 01:12:17,460
consuming oral in a meeting? Correct. But they didn't send you anything and writing other than

729
01:12:17,460 --> 01:12:22,160
they want to subscribe to the mailing list. I do not believe the mailing list was-

730
01:12:22,160 --> 01:12:26,040
Or they want to stay informed. They just want to stay informed. Correct. It was like

731
01:12:26,040 --> 01:12:31,980
saying both. Right. So they want to stay involved or informed. But they never said they want to

732
01:12:31,980 --> 01:12:38,420
help pay for this. As I mentioned director is too early to execute a partnership agreement.

733
01:12:38,420 --> 01:12:46,180
It is never too or so the JPA of most of a caros has seven people completely on board.

734
01:12:47,020 --> 01:12:53,060
Even though as I just heard you say, those the final cost of that has not been determined.

735
01:12:54,480 --> 01:12:57,420
So it's actually, you know, under what?

736
01:12:58,040 --> 01:13:07,100
What is your theory that as the cost of this goes up, other agencies are more likely to participate?

737
01:13:08,280 --> 01:13:14,880
I do not have a theory on participation of other agencies moving forward, those are elected bodies most likely and they will have those discussions themselves.

738
01:13:15,420 --> 01:13:21,420
Okay, so really, we have zero agencies that have actually made a firm commitment.

739
01:13:23,200 --> 01:13:26,160
And as I said, we do have a memorandum of understanding with San Benito County.

740
01:13:26,300 --> 01:13:27,740
From 2018.

741
01:13:29,380 --> 01:13:29,680
Correct.

742
01:13:29,920 --> 01:13:32,000
And what was the price of the project then?

743
01:13:32,620 --> 01:13:36,980
2018, I believe the project had escalated to 1.3 billion dollars.

744
01:13:37,420 --> 01:13:41,920
So still significantly, in 2018, the price was 1.3 billion.

745
01:13:42,760 --> 01:13:50,780
Correct, as I mentioned, the application in 2017 was done in 2015 dollars, as soon as it was incorporated into our initial capital improvement program.

746
01:13:51,200 --> 01:13:58,080
In 2018, we escalated the project to the midpoint of construction, at which point the price of the project was 1.35 billion to be exact.

747
01:13:58,080 --> 01:14:02,240
So, and how much of an interest did they state 2.8 percent?

748
01:14:02,760 --> 01:14:06,380
Interest was not a topic of discussion in the capital improvement program.

749
01:14:06,880 --> 01:14:09,780
No, I mean, how much of the participation were they interested in?

750
01:14:10,320 --> 01:14:14,080
So, once again, somebody who county is currently participating at 2.5 percent

751
01:14:14,080 --> 01:14:17,740
and has the ability to exercise up to 10 percent prior to construction

752
01:14:17,740 --> 01:14:21,800
and the particular past water district is a real estate agreement between

753
01:14:21,800 --> 01:14:24,440
value water and particular past water district for the option of purchase.

754
01:14:24,860 --> 01:14:30,500
Okay, so I know how options of purchase work and that is not the same as purchase a patient.

755
01:14:30,820 --> 01:14:36,520
And by using that San Bernardo County, so they so far paid 2.8% of our costs.

756
01:14:38,520 --> 01:14:42,800
Once again, director, they have spent 2.5% of the cost moving forward, yes.

757
01:14:43,100 --> 01:14:47,600
So they have contributed money to this. So how much money have they contributed?

758
01:14:48,540 --> 01:14:53,120
I do not have the total today at my ready. I can get that back to you in a four number of questions.

759
01:14:53,120 --> 01:14:56,080
Why is that in a part of this? I think maybe Darren has it

760
01:14:58,540 --> 01:14:59,300
through the chair

761
01:15:00,000 --> 01:15:15,440
Yes. As far as San Benito goes, San Benito has not contributed any money. As of this point in time, we are in communication with them and kind of telling up the amounts of money that they would pay as soon as we move forward with payments.

762
01:15:16,460 --> 01:15:19,660
That's what I thought. San Benito County has not paid a dime.

763
01:15:20,980 --> 01:15:26,860
And I'm not quite sure that what you presented to us is an accurate statement of the reality.

764
01:15:28,740 --> 01:15:32,920
If San Bernard O'Connor were actually interested, maybe they would have paid something.

765
01:15:34,020 --> 01:15:36,320
But they're not interested and they haven't paid a dime.

766
01:15:36,800 --> 01:15:44,840
Again, I sit on the board of two different JPAs and in both situations the various members have paid money.

767
01:15:45,680 --> 01:15:51,320
This has now been five years, as the price has gone up and up, and you are telling me with

768
01:15:51,320 --> 01:15:57,200
a straight face you honestly believe there is going to be material participation from other

769
01:15:57,200 --> 01:15:57,700
agencies.

770
01:15:58,880 --> 01:16:00,380
Is that what you're saying?

771
01:16:01,620 --> 01:16:05,320
Director, I believe I said that that was up to agencies in the future and not up to

772
01:16:05,320 --> 01:16:13,420
I know it's up to them, but do you believe that they are going to participate?

773
01:16:14,200 --> 01:16:16,780
My belief is irrelevant to this discussion now.

774
01:16:16,980 --> 01:16:23,920
Your belief is relevant to how are we supposed to make a decision if we don't know if other agencies are ever going to participate in this?

775
01:16:24,200 --> 01:16:28,080
I would hope that you would look at the presentation and take in the information and provide an evaluation.

776
01:16:29,800 --> 01:16:31,440
So that's where on our own.

777
01:16:32,880 --> 01:16:33,900
So I guess.

778
01:16:35,780 --> 01:16:42,860
So basically what I'm hearing you say is that there's no reason to believe that any other agency is ever going to participate in this.

779
01:16:42,860 --> 01:16:45,000
I did not say that, man.

780
01:16:45,260 --> 01:16:47,680
But you also didn't say that there's any reason that they will.

781
01:16:47,940 --> 01:16:49,240
Please, if they will.

782
01:16:49,720 --> 01:16:49,980
Correct.

783
01:16:49,980 --> 01:16:53,700
I've made no determination that regarding agencies for future participation.

784
01:16:55,420 --> 01:16:55,500
Great.

785
01:16:55,960 --> 01:16:57,020
I'm going to conclude that.

786
01:16:57,020 --> 01:17:00,300
If that, at a much lower price tag, no one was interested that,

787
01:17:00,300 --> 01:17:02,580
probably not going to be interested at a high price tag.

788
01:17:03,340 --> 01:17:03,640
I'm sorry.

789
01:17:04,100 --> 01:17:05,640
I don't know what to do when they don't answer.

790
01:17:05,960 --> 01:17:06,540
I will just...

791
01:17:07,740 --> 01:17:08,620
Thank you.

792
01:17:08,920 --> 01:17:09,640
I will move forward.

793
01:17:09,660 --> 01:17:10,560
Thank you for your comments.

794
01:17:10,560 --> 01:17:11,860
Thank you.

795
01:17:11,860 --> 01:17:12,560
CEO, calendar?

796
01:17:14,660 --> 01:17:15,380
Thank you Mr. Chairman.

797
01:17:15,580 --> 01:17:17,660
I also was going to ask for the chair to intervene.

798
01:17:18,620 --> 01:17:22,660
I think everyone can clearly see the attacks coming directly on staff.

799
01:17:22,820 --> 01:17:27,060
We should be talking about the subject matter, not attacking staff, asking for the personal

800
01:17:27,060 --> 01:17:28,660
opinions or otherwise.

801
01:17:29,020 --> 01:17:30,540
So I would ask for the chair.

802
01:17:30,620 --> 01:17:32,280
I'm not asking for the personal opinion.

803
01:17:32,540 --> 01:17:35,080
I'm asking for the professional opinion.

804
01:17:35,660 --> 01:17:39,160
As is relevant to our analysis, how much this is going to work.

805
01:17:39,160 --> 01:17:44,180
I'm going to ask you with the same respect that you asked of the board and not interrupt me.

806
01:17:45,120 --> 01:17:53,520
So Mr. Chairman, I would ask for your intervention to protect the staff that's presented.

807
01:17:54,100 --> 01:17:54,420
So done.

808
01:17:54,960 --> 01:17:55,740
Thank you. Thank you. Thank you.

809
01:17:55,920 --> 01:17:56,380
Thank you. Thank you.

810
01:17:56,380 --> 01:17:57,320
Thank you.

811
01:17:57,560 --> 01:17:58,660
Director Keegan.

812
01:17:58,920 --> 01:17:59,880
Director Keegan.

813
01:18:03,720 --> 01:18:05,360
Good afternoon, Mr. Higgs.

814
01:18:06,760 --> 01:18:08,640
So a couple of questions here.

815
01:18:08,640 --> 01:18:11,740
As I understood your presentation,

816
01:18:15,100 --> 01:18:28,700
that we are not as far along in formal participation from other agencies because we're not as far along in the process.

817
01:18:28,700 --> 01:18:35,520
like, for example, Los Ficaros, actually when they designed it, they built in an expansion

818
01:18:35,520 --> 01:18:42,180
thing in their study, so, and I believe Sites Reservoir has also circulated a draft

819
01:18:42,180 --> 01:18:42,600
EIR.

820
01:18:43,460 --> 01:18:54,820
So, what I interpreted what you were saying was that it's our expectation that when we're

821
01:18:54,820 --> 01:19:01,140
at the conclusion or in the middle of the environmental process,

822
01:19:01,520 --> 01:19:04,700
enough information would be available to flesh out interest

823
01:19:04,700 --> 01:19:05,940
on the part of other agencies.

824
01:19:06,180 --> 01:19:07,320
Was that what you're saying?

825
01:19:07,460 --> 01:19:08,080
That is correct.

826
01:19:08,320 --> 01:19:11,800
Out of the eight CWC or California Water Commission projects

827
01:19:11,800 --> 01:19:13,140
that received prop one funding.

828
01:19:13,660 --> 01:19:16,140
Pacheco is actually, from a timeline perspective,

829
01:19:16,360 --> 01:19:17,920
the last in the line in terms of development.

830
01:19:18,660 --> 01:19:21,000
Las Recuerros expansion actually contemplated

831
01:19:21,000 --> 01:19:23,980
the expansion that they're doing now in a draft EIR

832
01:19:23,980 --> 01:19:25,240
that was submitted in 2012.

833
01:19:26,060 --> 01:19:27,720
So they are definitely further in the process.

834
01:19:28,760 --> 01:19:31,140
So yes, we are the last project that

835
01:19:31,140 --> 01:19:33,240
will be going through the timeline with the CWC.

836
01:19:33,580 --> 01:19:36,800
And so the system raised project is ahead of us as well.

837
01:19:36,940 --> 01:19:37,120
Correct.

838
01:19:37,280 --> 01:19:39,080
There was an existing dam safety project

839
01:19:39,080 --> 01:19:40,740
that had been contemplated as well.

840
01:19:41,240 --> 01:19:44,180
So that is ahead of the current timeline

841
01:19:44,180 --> 01:19:46,380
for the particular reservoir expansion project.

842
01:19:46,820 --> 01:19:47,300
OK.

843
01:19:47,480 --> 01:19:52,760
And if we could go back to the slide

844
01:19:52,760 --> 01:19:57,700
that shows partnership status, which is page 19 of 36.

845
01:19:58,040 --> 01:19:59,480
Here we are. Great. Thank you.

846
01:20:01,680 --> 01:20:14,720
So our target is 35% and right now we have a 2.5% participation in theory by San Benito County and Water District.

847
01:20:16,080 --> 01:20:27,000
Are they going to make any payment, like for example, if we're starting to spend money on

848
01:20:27,000 --> 01:20:31,800
doing, well, we are already starting money on the environmental work, when is that money

849
01:20:31,800 --> 01:20:33,320
going to come our way?

850
01:20:33,780 --> 01:20:39,280
I'll turn that over to either around the Carter or CFO, Darren Taylor, who just as an introduction

851
01:20:39,280 --> 01:20:42,840
as back from jury duty and as a replacement early in son on the panel.

852
01:20:44,140 --> 01:20:45,580
Welcome back.

853
01:20:45,920 --> 01:20:46,980
Thank you.

854
01:20:46,980 --> 01:20:48,420
I should have noticed the difference.

855
01:20:50,300 --> 01:20:52,000
It's got to be clean.

856
01:20:52,420 --> 01:20:53,380
Through the chair.

857
01:20:55,160 --> 01:21:03,540
As I mentioned, we have been tracking the costs that we've been spending on Pacheco

858
01:21:03,540 --> 01:21:08,660
and we have been notifying San Benito of their portion of the costs

859
01:21:08,660 --> 01:21:14,380
have been tracked. We have not build them yet. I haven't researched as to when we would

860
01:21:16,760 --> 01:21:20,880
build them and invoice them and ask them for payment. That's something I would need to research.

861
01:21:21,260 --> 01:21:25,300
But at this point time I can tell you what we've been doing and that is tracking and informing

862
01:21:25,300 --> 01:21:33,780
them of their liability as the costs are expended. So your research sounds to me like that's a legal

863
01:21:33,780 --> 01:21:40,740
issue, like we have some sort of contractual relationship and we need to figure out when we can

864
01:21:40,740 --> 01:21:41,260
get payment.

865
01:21:41,600 --> 01:21:41,900
Is that it?

866
01:21:42,520 --> 01:21:48,320
Well, at this point in time, we have a member of understanding and that member of understanding

867
01:21:49,680 --> 01:21:51,440
contemplated a future agreement.

868
01:21:51,700 --> 01:21:57,360
So I believe that what you're saying is a fair characterization is that we would need to

869
01:21:57,360 --> 01:22:04,680
move into a next step and finalize and I might need other staff to kind of help me with that next step.

870
01:22:04,860 --> 01:22:12,380
And so does the memorandum of understanding, sorry, I'm an engineer, so sometimes I get a little deep in the details.

871
01:22:13,720 --> 01:22:21,260
That memorandum of understanding does obligate them to participate in these costs or now.

872
01:22:21,260 --> 01:22:21,780
to

873
01:22:25,400 --> 01:22:27,980
the chair if I could weigh in, I'm not sure if this is on.

874
01:22:28,080 --> 01:22:28,460
Sure, Ryan.

875
01:22:29,060 --> 01:22:29,920
Is it on that?

876
01:22:31,600 --> 01:22:32,680
Take your on now.

877
01:22:34,160 --> 01:22:34,560
On now?

878
01:22:35,860 --> 01:22:36,100
Yeah.

879
01:22:36,240 --> 01:22:38,860
Yeah, as CFO Taylor mentioned, the memorandum

880
01:22:38,860 --> 01:22:42,300
have been understanding doesn't have really the payment provisions in it.

881
01:22:42,400 --> 01:22:45,920
It really just lines out what the percentage of participation would be.

882
01:22:46,020 --> 01:22:49,100
So we are having a working with Sam Benito County Water District

883
01:22:49,100 --> 01:22:51,640
on developing an agreement that's been kind of put on hold

884
01:22:51,640 --> 01:22:53,180
as we're developing the project more.

885
01:22:53,180 --> 01:23:02,200
but their net contribution is somewhere around the $700,000 range so far at 2.5% minus what

886
01:23:02,200 --> 01:23:04,000
we've received from the California Water Commission.

887
01:23:04,540 --> 01:23:09,340
So, we are tracking that and we do give them annual kind of summaries of how much they do

888
01:23:09,340 --> 01:23:13,340
else that they can work that into what their kind of liabilities are for their district.

889
01:23:13,760 --> 01:23:18,300
But they could walk away. I mean, if we don't get to the point where there's an agreement that those

890
01:23:18,300 --> 01:23:19,940
costs could all be on that strike.

891
01:23:19,940 --> 01:23:25,960
Potentially they could walk away, and if that's the same for, you know, our involvement with LBE as well.

892
01:23:26,100 --> 01:23:29,100
I mean, we could walk away at any time as well.

893
01:23:30,220 --> 01:23:30,440
Okay.

894
01:23:32,200 --> 01:23:39,460
The other thing I wanted to ask here is we talk about four water agencies comprised of 11 members expressing interest.

895
01:23:40,520 --> 01:23:45,360
I think it's, and this goes back to kind of my original question, where I was saying,

896
01:23:45,360 --> 01:23:48,920
how much participation, external participation

897
01:23:48,920 --> 01:23:51,020
to those other projects have.

898
01:23:51,640 --> 01:23:54,860
I'm, like I know, Pacheco even got some federal money

899
01:23:54,860 --> 01:23:59,980
recently, in addition to the cost share amongst the JPA members.

900
01:24:00,020 --> 01:24:02,840
I think it's important information for us to have,

901
01:24:02,900 --> 01:24:06,320
because we can say, well, there's all these water agencies

902
01:24:06,320 --> 01:24:10,380
that are interested, but like Pacheco pass water district,

903
01:24:10,480 --> 01:24:11,020
they're tiny.

904
01:24:11,140 --> 01:24:13,680
I don't think they have the ability to come up with any money

905
01:24:13,680 --> 01:24:22,120
this and then in terms of the four water agencies there I really would like a realistic and I

906
01:24:22,680 --> 01:24:28,740
I don't expect to get an answer right here today but I would have liked that answer.

907
01:24:29,420 --> 01:24:33,200
I think that that's important information for us to understand because

908
01:24:34,200 --> 01:24:40,280
you know we could have a dozen teeny tiny water agencies interested but if they can't make it to that

909
01:24:40,280 --> 01:24:45,460
35% that we're counting on, that's problematic.

910
01:24:46,800 --> 01:24:50,400
So I really think we need to get more information

911
01:24:50,400 --> 01:24:53,640
about, you know, so I'm so you can show something

912
01:24:53,640 --> 01:24:55,760
and it's like, here's relatively certain.

913
01:24:55,960 --> 01:24:59,900
Here's speculative and, you know, here's a little bit worrisome.

914
01:25:00,400 --> 01:25:08,240
I don't have a handle on that right now and it's something that I'd like to have, so just to bear that in mind.

915
01:25:13,880 --> 01:25:16,920
Please, my power. Thank you.

916
01:25:18,160 --> 01:25:26,720
You know, we're talking about partnerships here and we have other partners, obviously, and how we conduct our business.

917
01:25:26,720 --> 01:25:36,680
And one of the things that I'm now aware of is that the water retailers are not supportive of this project.

918
01:25:36,860 --> 01:25:44,740
And I think that that's important information that I would have hoped have been part of this presentation.

919
01:25:44,740 --> 01:25:47,560
My understanding is that yesterday,

920
01:25:49,640 --> 01:25:53,760
when people, when we had the water retailers meeting,

921
01:25:55,300 --> 01:26:01,640
that, as I said, water company actually abstained from CIP approval, because of their concerns

922
01:26:01,640 --> 01:26:02,560
about Pacheco.

923
01:26:05,720 --> 01:26:09,820
And as I said, water company is one of our largest water retailers.

924
01:26:09,820 --> 01:26:14,520
So if they have concerns, then I'm going to have concerns as well.

925
01:26:16,600 --> 01:26:30,100
And lastly, I did think we'd given pretty clear direction that the board wanted to have some kind of decision point on Pacheco.

926
01:26:30,300 --> 01:26:32,560
And I don't feel that's what we got today.

927
01:26:32,560 --> 01:26:40,920
And that's a strategy, I guess, a point could be made that will have more information

928
01:26:42,060 --> 01:26:47,560
in the future, as we move forward with the environmental document.

929
01:26:48,140 --> 01:26:51,600
But that means that we're spending a lot of public money.

930
01:26:52,680 --> 01:27:00,540
And sometimes I feel things are like, I don't know, we've all had that experience of losing direction, right?

931
01:27:00,540 --> 01:27:06,720
go on a detour and it looks like it's going to take you to where you want to be and all of

932
01:27:06,720 --> 01:27:12,800
a sudden there's no signs, there's no gas stations, there's no nothing and it's like well maybe

933
01:27:12,800 --> 01:27:18,080
this wasn't a good idea so I originally thought and sometimes we have to turn around and

934
01:27:18,080 --> 01:27:27,600
make a change and I also want to say I've never been opposed to the Jacob project. I think

935
01:27:27,600 --> 01:27:29,260
there's some benefits to it.

936
01:27:29,260 --> 01:27:32,780
I've had constituents tell me that they've had an interest in it.

937
01:27:33,000 --> 01:27:37,940
But there comes a point when we really have to think about the price

938
01:27:37,940 --> 01:27:41,020
and the future exposure and all those kinds of things.

939
01:27:41,380 --> 01:27:52,520
And I feel like I don't want to continue going down a path if our partners

940
01:27:52,520 --> 01:27:59,920
aren't supportive of it if the price keeps going up and I don't think that waiting until

941
01:28:01,040 --> 01:28:07,160
2024 to make an actual decision about this project is in anyone's best interest.

942
01:28:08,080 --> 01:28:10,580
So I'll just leave it at that.

943
01:28:10,740 --> 01:28:12,560
Those are more comments than questions.

944
01:28:14,680 --> 01:28:18,800
I do appreciate that there's room to disagree on this stuff.

945
01:28:18,800 --> 01:28:23,140
Again, I'm not philosophically opposed to Pacheco.

946
01:28:23,480 --> 01:28:26,360
I'm just very concerned about the cost

947
01:28:26,360 --> 01:28:30,460
and I'm very concerned that we might be tying the hands

948
01:28:30,460 --> 01:28:33,140
of future board members, where they're left in a position,

949
01:28:33,660 --> 01:28:37,720
where their only options are either to cut projects

950
01:28:37,720 --> 01:28:40,240
or delay them extensively or raise water rates.

951
01:28:40,560 --> 01:28:43,540
And that may not be, and I think this is where the water retailers

952
01:28:43,540 --> 01:28:45,900
are coming from, that may not be palatable.

953
01:28:45,900 --> 01:28:55,340
And so I think we need to be very conscious of that as we move forward.

954
01:28:56,240 --> 01:29:06,460
And certainly we have the opportunity to, I believe, to make decisions prior to 2024.

955
01:29:07,220 --> 01:29:13,320
So that would be my hope that we have other opportunities to really weigh in on this.

956
01:29:13,420 --> 01:29:14,090
So thank you.

957
01:29:14,090 --> 01:29:30,170
Thank you chair. I was going to provide some perspectives or my personal experience about

958
01:29:30,170 --> 01:29:41,610
this sports decision making any project using cost benefit as a criteria. This may or may not

959
01:29:41,610 --> 01:29:48,790
apply to Pacheco, but then I just want to share with everybody that I've been here

960
01:29:48,790 --> 01:29:58,570
a long time, and even longer than Dr. Astro-Marie and Dr. Fentos, that, and I spent the

961
01:29:58,570 --> 01:29:59,910
majority of my career.

962
01:30:00,000 --> 01:30:14,280
Full Protection Project, resolution, what a supply project. And majority of that experience was dealing with core of engineer on providing full protection on some of these major Guadalupe coyote Creek.

963
01:30:14,280 --> 01:30:22,760
And the core has this terminology called AED and LLP.

964
01:30:23,500 --> 01:30:31,280
So AED is a national economic, I don't remember what's D design, but LLP is locally preferred

965
01:30:31,280 --> 01:30:31,840
project.

966
01:30:32,660 --> 01:30:38,940
So of course, AED is based on strict calculation of numbers, cost, and for ratios.

967
01:30:38,940 --> 01:30:44,340
and only the benefit that they can assign a dollar amount to it.

968
01:30:44,600 --> 01:30:50,700
Many of the benefits they know are because there's a not a good way of assigning a dollar amount.

969
01:30:51,900 --> 01:30:57,380
The former board and staff under the direction of the board,

970
01:30:58,200 --> 01:31:08,020
we have always advocate and do our best to do the LLP project because that's locally preferred project.

971
01:31:08,020 --> 01:31:10,360
that's what our constituent wants.

972
01:31:11,060 --> 01:31:14,120
It's not the, never the cheapest alternative,

973
01:31:14,400 --> 01:31:17,440
because any of you, it's the cheapest alternative,

974
01:31:18,300 --> 01:31:21,400
but the, the, the, the, the board, I was, I was step person,

975
01:31:21,400 --> 01:31:25,440
but it's always that, uh, whatever the community needs,

976
01:31:25,600 --> 01:31:27,900
whatever the community wants, uh, is the project

977
01:31:27,900 --> 01:31:30,000
we're going to, uh, we're going to fight for.

978
01:31:30,340 --> 01:31:34,640
So, um, I just wanted to share that with all of you,

979
01:31:34,640 --> 01:31:46,680
And later in my career, we added environmental to our mission, and then we are struggling,

980
01:31:46,680 --> 01:31:53,740
I think, even today, that when you look at benefits of a project, how do you assign

981
01:31:53,740 --> 01:32:01,060
a dollar sign to environmental benefits, how do you assign a dollar sign to preserve a habitat

982
01:32:01,060 --> 01:32:16,920
to help fish, and so it's very, it's, it's, it's, so without a dollar sign as on to it in a way it's like the benefit cannot be strictly calculated based on mass.

983
01:32:18,140 --> 01:32:24,040
So I mean, my comment may or may not apply to a particular decision the board is going to make,

984
01:32:24,040 --> 01:32:34,080
But I just want to provide that to, so that we have some perspective on how the

985
01:32:34,080 --> 01:32:38,720
solar organization has been and how the decision was made.

986
01:32:39,600 --> 01:32:40,640
It's all about the community.

987
01:32:41,340 --> 01:32:42,700
So, okay, thank you.

988
01:32:43,380 --> 01:32:43,860
Dr. Santos.

989
01:32:47,320 --> 01:32:47,840
Thank you, Chair.

990
01:32:48,500 --> 01:32:53,440
There's a director, Shua, stated, you know, you can put dollar signs when we always do,

991
01:32:53,440 --> 01:33:01,860
It's the cart before the horse because and I've said this before I'm just repeat myself and if you heard other colleagues talk about the questionable things

992
01:33:01,860 --> 01:33:04,640
They have to do for decisions. Well, I see it differently

993
01:33:05,980 --> 01:33:07,320
When you talk about

994
01:33:08,300 --> 01:33:13,100
This potential source of water. Why was it built in 1939? Well, it's pretty obvious

995
01:33:13,740 --> 01:33:15,820
It was floods agriculture

996
01:33:16,980 --> 01:33:22,940
Food and all the things in 1939 and jobs to help folks got the recession. So here we are today

997
01:33:23,560 --> 01:33:26,340
A long time later, it's just staying the same issue.

998
01:33:26,680 --> 01:33:28,580
Here's right here, by Stanford papers.

999
01:33:28,760 --> 01:33:29,440
Here's what it says.

1000
01:33:29,560 --> 01:33:33,620
Stanford study explores how dams, reservoirs could benefit global food.

1001
01:33:34,500 --> 01:33:36,620
Dams and reservoirs help supply drinking water.

1002
01:33:37,040 --> 01:33:39,360
Hydroelectric power to initials around the world.

1003
01:33:40,300 --> 01:33:44,020
But that water is also critical to another life and death calculation.

1004
01:33:44,680 --> 01:33:47,020
A available, global food supply.

1005
01:33:47,600 --> 01:33:49,520
So I can go on and on and on.

1006
01:33:49,520 --> 01:33:54,160
You know, many of you have went around on 1970,

1007
01:33:54,820 --> 01:33:57,440
six and I've repeat this before, as a fire captain

1008
01:33:57,440 --> 01:34:01,200
during that time, when then the governor Regan

1009
01:34:01,200 --> 01:34:02,880
closed down all the mental health.

1010
01:34:03,160 --> 01:34:06,060
And today they're all living in the creek, huge amounts of them.

1011
01:34:06,120 --> 01:34:07,280
I wouldn't go on and on.

1012
01:34:07,500 --> 01:34:09,520
And at the time, the public was in the same way.

1013
01:34:09,780 --> 01:34:10,540
We got to make the decision.

1014
01:34:10,540 --> 01:34:11,680
It's going to be cost.

1015
01:34:11,960 --> 01:34:13,120
What kind of this reduced welfare?

1016
01:34:13,560 --> 01:34:14,620
But what did we do?

1017
01:34:15,040 --> 01:34:16,240
Recreated damage control.

1018
01:34:16,240 --> 01:34:21,940
That is exceeded, exceeded what we even thought of during that time.

1019
01:34:22,160 --> 01:34:28,840
My calls were 150 and months went to 350 because then the mental population was put in

1020
01:34:28,840 --> 01:34:32,280
halfway houses, no mentoring, no window on or on, today we're paying triple.

1021
01:34:32,800 --> 01:34:35,940
So I go back to the same thing, why was it built in 1339?

1022
01:34:36,420 --> 01:34:41,360
I got mine, I want your great grandchildren to have water, that's going to be the best decision

1023
01:34:41,360 --> 01:34:42,120
I can make.

1024
01:34:42,120 --> 01:34:51,300
It's flow, it's supply, it's food, all the things, and it gives us a great source for South County to have a water available now, not waiting to win.

1025
01:34:51,780 --> 01:34:54,160
When John and I pass away, I think I make me happy.

1026
01:34:54,780 --> 01:34:59,980
If I made this decision today, since I've been in a water board, this is going to be the best decision.

1027
01:35:00,000 --> 01:35:07,260
Decisions, because I can leave your great grandchildren with water, because you'll pay what your lives if you don't have water.

1028
01:35:07,900 --> 01:35:14,820
And what does the Stanford scientific paper say that you will have 10 and 20 year droughts?

1029
01:35:14,920 --> 01:35:22,420
NASA papers says the same thing we're in an area. So right today we're all happy we have four weeks of water.

1030
01:35:23,280 --> 01:35:28,000
And I've been here long enough with Tony that we know we've faced three times we faced

1031
01:35:28,000 --> 01:35:31,240
the droughts or water conservation programs and so on.

1032
01:35:31,440 --> 01:35:35,420
And then when we hear a staff up here, let's remember this, staff does the work of direction

1033
01:35:35,420 --> 01:35:36,160
of the board.

1034
01:35:38,520 --> 01:35:43,000
So, they do a great job and they have to answer the question that we direct them to.

1035
01:35:43,180 --> 01:35:43,860
And Barbara's, right?

1036
01:35:43,860 --> 01:35:46,320
These all these decisions have to be looked at and nice, right?

1037
01:35:46,420 --> 01:35:47,460
We all have to look at these decisions.

1038
01:35:47,460 --> 01:35:52,840
But for me, it's not easy, cost, but you'll pay more at damage control.

1039
01:35:53,360 --> 01:35:59,160
So all I know is this, director of chairman came aboard, he did a great job in doing all that

1040
01:35:59,160 --> 01:36:02,620
legwork out there for this dam, sort of John Vorella.

1041
01:36:03,000 --> 01:36:07,500
I was part of it, proud to be doing it, I'm going to support this project, because that's about

1042
01:36:07,500 --> 01:36:10,800
jobs and water for the future that we may not have.

1043
01:36:11,320 --> 01:36:17,200
And if we did have that water in 2017, I'm excuse me, then most likely we wouldn't have

1044
01:36:17,200 --> 01:36:22,740
the 2017 front, which Bihar was going through now, again, another disadvantaged community.

1045
01:36:23,140 --> 01:36:24,160
So I've been there.

1046
01:36:24,160 --> 01:36:28,740
I've lost everything I own over these things, so it's time, I hope, and I'm sure we have

1047
01:36:28,740 --> 01:36:33,340
more presentation, but it's not that my mind's made up, because it's not the only thing

1048
01:36:33,340 --> 01:36:38,720
that's your life that's most important, and I know if you don't have water in a beast terrible,

1049
01:36:38,780 --> 01:36:40,020
so thank you.

1050
01:36:40,260 --> 01:36:40,760
Thank you, Director.

1051
01:36:41,240 --> 01:36:42,420
We can go on with our presentation.

1052
01:36:44,860 --> 01:36:45,100
Okay.

1053
01:36:45,100 --> 01:36:47,080
So we're going to talk costs.

1054
01:36:47,460 --> 01:36:54,860
Currently, we have an uninflated project cost of 2.2,0006 billion in our CIP inflated.

1055
01:36:55,060 --> 01:36:57,000
That's 2.78 billion.

1056
01:36:58,060 --> 01:37:00,560
As everyone knows, we are at the 30% design level.

1057
01:37:00,840 --> 01:37:03,960
So there is a bit of contingency that's included into the project.

1058
01:37:04,440 --> 01:37:09,520
On our design and construction side, there's about $460 million of the students see that's still in the project.

1059
01:37:09,700 --> 01:37:14,120
That is money that we've included for design elements that we have not properly anticipated.

1060
01:37:14,120 --> 01:37:19,980
it, although we do have 50 million in mitigation in the project right now, we do anticipate

1061
01:37:19,980 --> 01:37:23,180
that that could rise so that we come out of the 460 million as well.

1062
01:37:23,680 --> 01:37:27,340
We also project somewhere between one and five million of operating costs.

1063
01:37:27,500 --> 01:37:32,180
That is outside of our capital improvement program, but we have been modeling it and I believe

1064
01:37:32,180 --> 01:37:36,960
it's listed as a footnote in there because the board has given us direction to include operating

1065
01:37:36,960 --> 01:37:38,020
costs moving forward.

1066
01:37:39,400 --> 01:37:43,560
This is just the rough breakdown of planning of our mental design right away, construction and

1067
01:37:43,560 --> 01:37:44,180
closeout.

1068
01:37:44,500 --> 01:37:48,640
Task 00 is a miscellaneous labor charge, it's just in there because after the fact

1069
01:37:48,640 --> 01:37:55,140
it's a little bit difficult to classify those charges, but the main drivers of cost are

1070
01:37:55,140 --> 01:37:55,800
listed above.

1071
01:37:58,840 --> 01:38:01,760
I will turn this over to Darantailer, there's a lot of information on this slide.

1072
01:38:03,400 --> 01:38:05,800
Good afternoon, members of the board, Darantailer.

1073
01:38:06,500 --> 01:38:08,580
So yes, there is a lot going on in this slide.

1074
01:38:08,580 --> 01:38:10,460
So I'm going to walk through it fairly slowly.

1075
01:38:11,080 --> 01:38:15,260
And we'll start with the table and going down the left-hand column.

1076
01:38:15,840 --> 01:38:19,380
I've divided the years into five-year increments.

1077
01:38:19,640 --> 01:38:25,260
So it shows a projection from FY19 to FY67 and five-year increments.

1078
01:38:25,520 --> 01:38:30,780
That last FY67, 6467 is a four-year increment.

1079
01:38:32,000 --> 01:38:33,860
And then as we go across the top of the table,

1080
01:38:34,080 --> 01:38:35,800
column B is the capital cost.

1081
01:38:35,800 --> 01:38:39,080
That's the inflated capital cost that Chris just referred to,

1082
01:38:39,320 --> 01:38:40,960
totaling $2.78 billion.

1083
01:38:41,880 --> 01:38:46,880
And then moving on to column C, that's the prop one grant at $504 million.

1084
01:38:47,360 --> 01:38:51,140
And that's offset the cost, so that's reflected in a negative number.

1085
01:38:51,360 --> 01:38:55,520
So cost is reflected in positive numbers and offsets in negative numbers.

1086
01:38:55,940 --> 01:38:57,280
And then column D and E.

1087
01:38:57,320 --> 01:39:01,780
Column D is the WIFIA debt proceeds that would help provide upfront funding

1088
01:39:01,780 --> 01:39:05,000
for the project totaling $1.36 billion.

1089
01:39:05,000 --> 01:39:08,620
And then column E is the revenue bond debt proceeds.

1090
01:39:09,740 --> 01:39:12,400
That's $236 million of debt proceeds.

1091
01:39:13,000 --> 01:39:15,880
That's an estimate based on assuming that

1092
01:39:15,880 --> 01:39:20,060
70% of the net project cost would be financed.

1093
01:39:20,900 --> 01:39:23,140
And so that's where that number comes from.

1094
01:39:23,360 --> 01:39:26,080
And then if we move over to columns F and G,

1095
01:39:26,080 --> 01:39:28,400
column F is the WIFIA debt service.

1096
01:39:29,340 --> 01:39:32,800
And that's a, again, in a positive number

1097
01:39:32,800 --> 01:39:37,860
because that's the cost going out, that's paying for principal and interest associated with

1098
01:39:37,860 --> 01:39:45,100
the WIFIA loan at $4.2 billion over the life of the loan and then column G is the revenue

1099
01:39:45,100 --> 01:39:54,620
bond debt service on that $236 million paying back $566 million over the life of that debt

1100
01:39:54,620 --> 01:39:59,980
and then column H is the assumption of the 35% partner payments recall.

1101
01:40:00,000 --> 01:40:06,840
All back in April of 2021, the board had a fairly vigorous discussion about what to assume with regard to partner

1102
01:40:07,400 --> 01:40:15,680
partnerships and target for staff to go and retrieve in terms of obtaining partnerships.

1103
01:40:16,480 --> 01:40:22,900
So that's $2.2 billion in column H in a negative number that represents partnership payments.

1104
01:40:22,900 --> 01:40:33,840
And then column I is the net cash flow, so when you sum together, columns B through H, you get a net cash flow out of that, and that total is $3.2 billion.

1105
01:40:34,580 --> 01:40:42,200
Now, if we were not successful in getting any partners, the note there shows a total net cash flow of $5.5 billion.

1106
01:40:43,040 --> 01:40:45,240
So that's what it would look like without partnerships.

1107
01:40:45,980 --> 01:40:52,580
As we move to some of the key assumptions that are baked in here, I noted some of the wiffier assumptions on the right hand side of the slide.

1108
01:40:52,580 --> 01:40:57,700
the wiffy of principal payments for construction loan begin in FY55 and you

1109
01:40:57,700 --> 01:41:01,360
can kind of see that if you look down that column F, look at the wiffy of debt

1110
01:41:01,360 --> 01:41:06,340
service payments. It's all interest until we get to FY55 and you see that the

1111
01:41:06,340 --> 01:41:12,520
debt service kick up there to $863 million for that five-year time frame. That's

1112
01:41:12,520 --> 01:41:17,240
when the principal payments would kick in. The other assumptions that I wanted to

1113
01:41:17,240 --> 01:41:20,780
note for you is that the borrowing rate that we're assuming for the wiffy of

1114
01:41:20,780 --> 01:41:26,600
is 4.7% for the initial planning and design loan, and then 5.7% for the construction loan.

1115
01:41:27,120 --> 01:41:31,900
We believe that's a conservative assumption that with the loan borrowing rate would

1116
01:41:31,900 --> 01:41:36,700
be based on the 30-year treasury, which today is at 3.67%.

1117
01:41:36,700 --> 01:41:40,660
So we believe that is a little bit of there's that is a conservative assumption.

1118
01:41:41,660 --> 01:41:45,320
The WIFI alone draws wouldn't start until FY27.

1119
01:41:45,320 --> 01:41:52,120
Now, I am reflecting with the adet proceeds in FY19, that FY19 to 23-time frame.

1120
01:41:52,580 --> 01:41:58,140
What is actually would be happening there is short-term debt being issued, and then

1121
01:41:58,140 --> 01:42:05,360
in FY27 we would refund that short-term debt with the WIFI alone, and that's being reflected

1122
01:42:05,360 --> 01:42:11,960
there in column D. Lastly, what I wanted to talk about was the bottom of the slide, and

1123
01:42:11,960 --> 01:42:17,680
And this gets into rate impacts and sort of that capacity question that the board has asked.

1124
01:42:18,080 --> 01:42:24,520
And so what I've done is translate that net cash flow column I into a North County groundwater

1125
01:42:24,520 --> 01:42:27,800
charge or monthly impact to the average household.

1126
01:42:28,640 --> 01:42:34,080
And so, picked some time frames there to kind of portray that for you for the FY29 to

1127
01:42:34,080 --> 01:42:35,520
FY33 timeframe.

1128
01:42:36,860 --> 01:42:40,700
And this on the left-hand side, it's with partner payments and on the right-hand side,

1129
01:42:40,700 --> 01:42:47,320
with out partner payments. So the impact of that cash flow translates to $387.00

1130
01:42:47,320 --> 01:42:54,580
per foot over that five-year timeframe or an average of $13.35 per month to the average

1131
01:42:54,580 --> 01:43:00,520
household. And that represents about 10% of the overall North County groundwater charts

1132
01:43:00,520 --> 01:43:10,680
in that five-year timeframe. So if one wants to think about capacity, how much is the

1133
01:43:10,680 --> 01:43:19,760
percent. As we move on, into time, that percentage of capacity is going to go down. So in FY34

1134
01:43:20,860 --> 01:43:26,980
FY53, over that timeframe, that's 20 years. You can see that the average is $8.80 per

1135
01:43:26,980 --> 01:43:33,980
month from that timeframe. So it goes down. In FY54 to 67, that's when we have the principal

1136
01:43:33,980 --> 01:43:39,880
payments kicking in for the way feel long. So that monthly charge for the average household

1137
01:43:39,880 --> 01:43:44,720
is going to go up a little bit to $14.75 per month on average.

1138
01:43:45,360 --> 01:43:51,540
The percentage capacity, again, you can think of that 10% as a peak, as the overall

1139
01:43:51,540 --> 01:43:56,540
water rates increase, and as debt service remains relatively level, relatively flat.

1140
01:43:56,700 --> 01:43:59,960
That peak percentage is going to go down, and the next five years is going to be in the

1141
01:43:59,960 --> 01:44:03,960
neighborhood of six percent, and in the time frame, after that, it's going to be in the

1142
01:44:03,960 --> 01:44:07,980
neighborhood of anywhere from two to four percent, in terms of that capacity.

1143
01:44:07,980 --> 01:44:26,320
And then, again, on the right-hand side, you see those monthly payments on average without partner payments, ranging from $15.30 a month for that FY29 to FY33 timeframe to $24.80 per month in that timeframe from FY54 to FY67.

1144
01:44:27,320 --> 01:44:29,720
And with that, I will pause.

1145
01:44:30,940 --> 01:44:32,320
And I think I turn it back over to Chris.

1146
01:44:32,680 --> 01:44:33,960
You have a direct relationship with?

1147
01:44:33,960 --> 01:44:42,710
I'll direct this directly to the CEO so not to make staff feel uncomfortable with my math-based

1148
01:44:42,710 --> 01:44:43,230
questions.

1149
01:44:44,030 --> 01:44:49,650
So Mr. Calendar, that $2.2 billion stated on the earlier slide, can you go back to

1150
01:44:49,650 --> 01:44:50,290
the earlier slide,

1151
01:44:52,980 --> 01:44:52,980
please?

1152
01:44:53,400 --> 01:44:54,100
The earlier slide?

1153
01:44:54,760 --> 01:44:55,280
Is anyone driving?

1154
01:44:55,860 --> 01:44:57,380
I believe this is the earlier slot.

1155
01:44:58,840 --> 01:44:59,960
Okay, 2.2.

1156
01:45:00,000 --> 01:45:04,960
Billion dollars. What percentage participation is that assumed?

1157
01:45:06,040 --> 01:45:11,280
The $2.2 billion is agnostic of participation percentage. That is the total construction cost.

1158
01:45:14,220 --> 01:45:17,420
That is the total construction cost. That is agnostic of participation.

1159
01:45:17,920 --> 01:45:25,740
Okay. Can you go back to the current slide then? So here it is 2.8 billion.

1160
01:45:26,580 --> 01:45:28,300
Correct. That is the inflated cost.

1161
01:45:28,880 --> 01:45:30,100
Define inflated.

1162
01:45:30,560 --> 01:45:32,560
We cost with inflation, man.

1163
01:45:33,140 --> 01:45:34,940
So why do we use a 2.2?

1164
01:45:35,160 --> 01:45:36,340
And happy asking the CEO.

1165
01:45:36,440 --> 01:45:37,780
Why do we use a 2.2?

1166
01:45:37,960 --> 01:45:44,300
Why do we use a non-inflation adjusted price tag on the earlier slide?

1167
01:45:46,120 --> 01:45:52,700
This is how we break down the costs without inflation as because inflation is a time sensitive issue.

1168
01:45:53,520 --> 01:45:54,400
The cost will vary.

1169
01:45:54,540 --> 01:45:58,400
This is the uninflated cost to show you what the true costs are at this moment in time.

1170
01:45:58,400 --> 01:46:04,660
moving forward, our CIP lists both uninflated and inflated costs, so that's why they're both on this life.

1171
01:46:05,280 --> 01:46:06,340
What is the current rate of inflation?

1172
01:46:07,840 --> 01:46:09,060
I will turn that over to Darren Taylor.

1173
01:46:11,710 --> 01:46:17,350
Typically for the CIP, what we would assume is a supplies and services inflation rate of 3%.

1174
01:46:18,690 --> 01:46:26,190
Now, in times like this, we will also add other adjustments for inflation that we're seeing in the near term.

1175
01:46:26,190 --> 01:46:33,290
We also assume labor and benefits inflation rate in the neighborhood of four to four and a half percent

1176
01:46:34,490 --> 01:46:37,730
Okay, thank you, so that's pretty high can you go back to the current slide?

1177
01:46:39,780 --> 01:46:41,380
Okay, so that

1178
01:46:41,380 --> 01:46:47,360
Capit of inflation adjusted capital cost which I'm just going to say actual capital cost is

1179
01:46:48,520 --> 01:46:52,540
2.8 billion what participation does that assume?

1180
01:46:53,420 --> 01:46:57,420
Once again, ma'am that considers no participation that is just the construction cost and how much

1181
01:46:57,420 --> 01:47:02,520
participation do we have now? I believe we've answered that previously. We do not have current participation.

1182
01:47:03,280 --> 01:47:11,060
Okay, so we don't have participation yet. We're using numbers that assume 35% participation. Why?

1183
01:47:12,660 --> 01:47:19,860
We receive board direction on April 16th, 2021 to target 35% participation in our models and inclusion into our

1184
01:47:19,860 --> 01:47:21,380
Capital Improvement Programme.

1185
01:47:21,400 --> 01:47:27,720
Do we need to vote on using reality instead of targets to make put forth our numbers?

1186
01:47:28,620 --> 01:47:34,180
I think, I mean, do I need to raise a motion saying that we should not assume participation

1187
01:47:34,180 --> 01:47:35,280
when none exists?

1188
01:47:36,640 --> 01:47:41,920
Mr. Chair, I'm going to interject on that question and refer that back to the Board Chair,

1189
01:47:42,040 --> 01:47:42,620
Tans, right?

1190
01:47:42,620 --> 01:47:44,940
I don't believe that's a question for staff.

1191
01:47:45,300 --> 01:47:46,320
That's not a question for the staff.

1192
01:47:46,320 --> 01:47:50,960
question for the board, are you raising the point that you want to make an emotion to

1193
01:47:52,220 --> 01:47:54,380
support the 35% is that which is a guess?

1194
01:47:54,440 --> 01:47:57,480
No, I'm saying that I'm going to clarify your point.

1195
01:47:57,480 --> 01:48:01,840
Okay, I apologize, chair, this has been kind of a thorn in my side.

1196
01:48:02,220 --> 01:48:12,180
These numbers assume that 35% which is more than a third of the costs will be paid for by other

1197
01:48:12,180 --> 01:48:13,940
water districts and agencies.

1198
01:48:13,940 --> 01:48:15,040
to be determined.

1199
01:48:15,560 --> 01:48:15,860
Right.

1200
01:48:15,920 --> 01:48:16,700
But it has nothing to do.

1201
01:48:16,860 --> 01:48:17,880
But exactly.

1202
01:48:18,740 --> 01:48:21,160
And of course that would be something we all would welcome.

1203
01:48:21,800 --> 01:48:28,940
But this step has been trying to get others to sign on for five years, and no one has

1204
01:48:28,940 --> 01:48:36,100
stated a interest beyond a five-year-old memorandum, non-binding memorandum, understanding

1205
01:48:36,100 --> 01:48:38,200
based on a much lower price tag.

1206
01:48:38,200 --> 01:48:49,340
So, I think it's only fair to the public, and to us to have actual numbers given, not numbers that are actually less than two thirds of the cost.

1207
01:48:49,980 --> 01:48:55,120
Well, based on the board decision than 2021, it was as alluded to, these are the board decisions at that time.

1208
01:48:55,220 --> 01:48:57,120
Are you asking to amend those decisions today?

1209
01:48:58,100 --> 01:48:59,360
If not, then we need to get both of them.

1210
01:48:59,360 --> 01:49:00,580
Yes, I guess I can.

1211
01:49:00,860 --> 01:49:01,940
Yes, I am asking that.

1212
01:49:02,080 --> 01:49:03,660
We be given actuals.

1213
01:49:03,720 --> 01:49:04,920
Okay, is that the form of emotion?

1214
01:49:04,920 --> 01:49:13,920
I move that we be given the actual price tag rather than a price tag that is discounted by 35%.

1215
01:49:14,680 --> 01:49:16,140
Okay, is that your motion?

1216
01:49:16,660 --> 01:49:16,780
Yeah.

1217
01:49:16,780 --> 01:49:17,300
Keep talking.

1218
01:49:17,900 --> 01:49:19,380
Do we have a second on her motion?

1219
01:49:19,780 --> 01:49:20,940
Director Eisenberg's motion.

1220
01:49:21,420 --> 01:49:23,080
Do I need to explain this for her?

1221
01:49:23,160 --> 01:49:23,280
No.

1222
01:49:23,660 --> 01:49:24,100
You don't.

1223
01:49:24,680 --> 01:49:27,560
Is there a second on the motion that was just put on to the boards?

1224
01:49:32,860 --> 01:49:39,100
I don't think that that that what's being requested is unreasonable because

1225
01:49:39,100 --> 01:49:41,640
Is that, are you seconding the motion, Director Keegan?

1226
01:49:43,280 --> 01:49:44,280
Can you let us speak please?

1227
01:49:44,560 --> 01:49:46,260
I'm asking for the second to your motion.

1228
01:49:46,740 --> 01:49:47,720
Are you seconding the motion?

1229
01:49:48,880 --> 01:49:49,180
Yes.

1230
01:49:49,820 --> 01:49:51,980
Okay, we have a board decision to make.

1231
01:49:52,260 --> 01:49:52,840
We have a motion.

1232
01:49:53,540 --> 01:49:55,640
Is this decision made by the board?

1233
01:49:56,100 --> 01:49:59,220
So we have a motion to, you want to restake your position on the motion?

1234
01:49:59,920 --> 01:49:59,980
Hi.

1235
01:50:00,000 --> 01:50:11,660
I move that the financial models reflect the current state of actual participation in this

1236
01:50:11,660 --> 01:50:16,100
project, rather than a hopeful participation.

1237
01:50:17,300 --> 01:50:22,060
Okay, are we all clear on the motion? Okay, all those in favour, signify by saying.

1238
01:50:24,620 --> 01:50:25,260
Mr. Chair, though.

1239
01:50:25,280 --> 01:50:28,820
Oh, sure. You want to have a discussion? Let's continue on. Do I have to

1240
01:50:29,740 --> 01:50:32,780
Did you state your position on that already?

1241
01:50:34,360 --> 01:50:38,160
I didn't, but I think that the clerk of the board has something to say.

1242
01:50:39,080 --> 01:50:41,580
I document that as two separate motions.

1243
01:50:42,340 --> 01:50:44,120
Not a difference from the first layer.

1244
01:50:44,260 --> 01:50:44,620
Okay.

1245
01:50:44,760 --> 01:50:46,360
We'll hear it from the board.

1246
01:50:46,980 --> 01:50:48,840
I will second that then.

1247
01:50:48,960 --> 01:50:49,660
Okay, good.

1248
01:50:49,660 --> 01:50:51,060
Do I just wear it?

1249
01:50:51,720 --> 01:50:52,820
We'll find that and then.

1250
01:50:53,700 --> 01:50:54,220
Okay.

1251
01:50:54,860 --> 01:50:55,140
Yeah.

1252
01:50:55,360 --> 01:50:56,260
Thank you chair.

1253
01:50:56,260 --> 01:51:04,840
And I understand completely the motion and then we're a director, I assume we're come from.

1254
01:51:05,740 --> 01:51:14,900
But I've always looked at these assumptions in our financial model as under this assumption,

1255
01:51:15,440 --> 01:51:16,340
things can work.

1256
01:51:16,680 --> 01:51:20,580
If that assumption doesn't come true, then this doesn't work.

1257
01:51:21,180 --> 01:51:22,620
So that's how I look at this.

1258
01:51:22,620 --> 01:51:28,420
And this is not the only assumption we made in our financial model.

1259
01:51:28,880 --> 01:51:32,640
We made many assumptions in our financial model.

1260
01:51:33,700 --> 01:51:36,380
So, if we're going to single out a particular,

1261
01:51:37,420 --> 01:51:40,720
as not having a assumption,

1262
01:51:41,120 --> 01:51:46,420
we should probably apply that in a broader sense that we don't have any assumptions.

1263
01:51:46,920 --> 01:51:50,380
We do have assumptions in our financial model,

1264
01:51:50,380 --> 01:51:53,540
and therefore individual projects.

1265
01:51:54,800 --> 01:51:56,600
So I guess I'm struggling.

1266
01:51:57,460 --> 01:51:59,660
I don't know how we should proceed.

1267
01:52:01,760 --> 01:52:03,220
Direct rest of the mirror?

1268
01:52:05,370 --> 01:52:08,830
Yeah, I wanted to find out what the motion is.

1269
01:52:09,110 --> 01:52:12,770
So I can decide what I want to support it or not.

1270
01:52:12,890 --> 01:52:14,330
I'm going to ask the clerk to restate the motion.

1271
01:52:15,610 --> 01:52:16,930
OK, thank you, Mr. Chair.

1272
01:52:16,930 --> 01:52:18,890
I actually have two motions out there.

1273
01:52:19,150 --> 01:52:20,290
Two separate motions.

1274
01:52:20,290 --> 01:52:21,930
they're not relevant to each other.

1275
01:52:22,090 --> 01:52:22,250
I do.

1276
01:52:22,510 --> 01:52:23,090
I understand.

1277
01:52:23,370 --> 01:52:24,170
Will this get some clarification?

1278
01:52:24,990 --> 01:52:26,390
So there was a report on this.

1279
01:52:26,570 --> 01:52:30,530
A motion by director, Eisenberg, second by Dr. Keegan, that the board

1280
01:52:30,530 --> 01:52:35,530
be given actual price tag of the Partaco Project versus price tags, that a discount of

1281
01:52:35,530 --> 01:52:38,510
I think was 35% I think is what I wrote down.

1282
01:52:38,910 --> 01:52:43,930
And then the second motion, from director, Eisenberg, second by director Keegan, is that

1283
01:52:43,930 --> 01:52:48,110
the board be provided with actual model reflecting current state of participation.

1284
01:52:48,690 --> 01:52:49,250
Okay?

1285
01:52:52,840 --> 01:52:53,620
Director Bell?

1286
01:52:59,470 --> 01:53:00,070
To the motion.

1287
01:53:01,070 --> 01:53:02,730
Because that's what we have to speak to now.

1288
01:53:03,650 --> 01:53:05,230
I'm looking at the columns here.

1289
01:53:06,770 --> 01:53:10,830
If you add up certain columns, does that answer the question?

1290
01:53:12,110 --> 01:53:14,970
If you can see without partners with partners,

1291
01:53:15,710 --> 01:53:20,130
just which columns do you add up to get it without the partners?

1292
01:53:21,870 --> 01:53:22,650
Simple question?

1293
01:53:22,810 --> 01:53:25,070
I think it's clearly defined in the numbers that are.

1294
01:53:25,070 --> 01:53:27,630
Well, this is down at the bottom. There's an arrow.

1295
01:53:27,950 --> 01:53:32,030
It says 5.5 billion without partners.

1296
01:53:32,570 --> 01:53:32,810
That's quick.

1297
01:53:33,030 --> 01:53:36,070
So that must be in a total of different columns.

1298
01:53:37,530 --> 01:53:41,210
So which columns can you maybe explain that, please?

1299
01:53:41,690 --> 01:53:42,310
Through the chair?

1300
01:53:42,510 --> 01:53:42,670
Yes.

1301
01:53:42,910 --> 01:53:43,850
Happy to answer that question.

1302
01:53:44,570 --> 01:53:48,290
So the 5.5 billion comes from adding,

1303
01:53:48,770 --> 01:53:52,950
or essentially subtracting out column H, which is the 35% partnership

1304
01:53:52,950 --> 01:53:57,370
assumption, you subtract that, and you get the 5.5 billion.

1305
01:53:57,930 --> 01:53:59,970
That was stated. So without partners,

1306
01:54:02,350 --> 01:54:03,170
no partners,

1307
01:54:05,710 --> 01:54:06,190
that's the assumption.

1308
01:54:06,490 --> 01:54:09,850
2.2 billion partner payments,

1309
01:54:14,640 --> 01:54:18,960
the total cost somewhere, right?

1310
01:54:19,920 --> 01:54:22,460
I suppose the easy math would be columnized.

1311
01:54:22,540 --> 01:54:24,980
I'm always like easy math. I'm big on that.

1312
01:54:25,160 --> 01:54:25,700
Sure, simple.

1313
01:54:25,700 --> 01:54:39,220
So, it's a column E, and subtract out the $2.2 billion, $35% partnership payments, which in effect you'd be adding the absolute number of the 2.2 plus 3.2 equals 5.5.

1314
01:54:39,540 --> 01:54:40,760
Yeah, that's what I thought. Okay, thank you.

1315
01:54:40,860 --> 01:54:43,200
That answer is not quite. I think the answer is there on the charts.

1316
01:54:43,720 --> 01:54:45,460
Good. Thank you.

1317
01:54:46,040 --> 01:54:46,420
Do you have any questions?

1318
01:54:48,160 --> 01:54:49,300
I just wanted to know.

1319
01:54:52,670 --> 01:54:55,510
Yeah. I agree. The answer is right there already.

1320
01:54:55,510 --> 01:54:58,290
So I'm voting against both moches.

1321
01:54:59,590 --> 01:54:59,970
The reason.

1322
01:55:00,000 --> 01:55:08,540
Again, why, as I recall, I haven't made a motion with respect to the 35% participation, is because

1323
01:55:08,540 --> 01:55:15,440
at least the board at the time felt that if we didn't have partners, we wouldn't do that.

1324
01:55:15,780 --> 01:55:18,520
We wouldn't make, we would just would not do this project.

1325
01:55:19,840 --> 01:55:26,720
And so, having said that to the public, we wanted to make sure that all of our assumptions included

1326
01:55:26,720 --> 01:55:33,880
that provides you. Obviously, if we can't get 35% of state at a year, then we're going

1327
01:55:33,880 --> 01:55:39,880
to have to look at this 5.5 billion, and I think when we get to that point, the boys

1328
01:55:39,880 --> 01:55:46,840
will say no. So I don't see any problem with carrying these numbers as they are. I don't

1329
01:55:46,840 --> 01:55:52,790
think we ought to keep changing numbers because that's not real healthy. And like any other

1330
01:55:52,790 --> 01:56:02,090
other project, including all of our personal projects, things change, the interest rate changes,

1331
01:56:02,590 --> 01:56:10,070
inflation changes, contractors change, on and on and on. When you first initially investigate,

1332
01:56:10,230 --> 01:56:18,450
again, whether it's the kitchen that you're remodeling or Anderson that you're redoing. When

1333
01:56:18,450 --> 01:56:23,530
If you first look at it, gee, that's what it looks like, but as you go along and start

1334
01:56:23,530 --> 01:56:27,950
trying to figure out, you go to the store and find out that would cause so much more

1335
01:56:27,950 --> 01:56:32,150
than it used to, and on and on and on, and then by the time you get to the store to buy

1336
01:56:32,150 --> 01:56:37,270
it, now it costs even more than when you first went to get the estimate, that doesn't mean

1337
01:56:37,270 --> 01:56:41,890
that you're incompetent in means that you deal with reality, and that's what we're trying

1338
01:56:41,890 --> 01:56:42,650
to do here.

1339
01:56:42,650 --> 01:56:50,870
So, it's very difficult until you have an actual project design and ready to go and bid out exactly what the costs are.

1340
01:56:51,110 --> 01:56:53,870
I mean, that just naturally what happens with construction.

1341
01:56:54,310 --> 01:56:57,450
This is not a secret, it's not a mystery, this is what happens.

1342
01:56:57,790 --> 01:57:01,330
Anyway, that's what this 35% means.

1343
01:57:03,470 --> 01:57:03,930
That's interesting.

1344
01:57:04,430 --> 01:57:08,490
I remember back in the day 1964, I was paying 12 cents a gallon for gas.

1345
01:57:09,130 --> 01:57:10,330
What do we pay for gas today?

1346
01:57:10,330 --> 01:57:18,030
Just, yeah, so I mean, time changes all the numbers and parameters, okay, Dr. Asimberg?

1347
01:57:20,600 --> 01:57:28,920
This should not be controversial. I need to repeat again. This is not like what you all just described.

1348
01:57:29,460 --> 01:57:37,880
This is as if you went to a restaurant, and the restaurant lists a stake, you know, the price of stake at $30,

1349
01:57:37,880 --> 01:57:46,220
When really that stake is $50 and you then order your stake and you eat your stake and you

1350
01:57:46,220 --> 01:57:51,100
receive your bill for $30 and the restaurant tells you, oh, you know, and you say,

1351
01:57:51,360 --> 01:57:56,740
wait, and the menu, it said $30 and the restaurant says, well, that menu price assumed

1352
01:57:56,740 --> 01:58:07,560
that someone else was paying for a, paying for 40% of it. That is what failure to reflect actual

1353
01:58:07,560 --> 01:58:17,560
participation does. It artificially reduces the price by 35 percent. And to my colleague,

1354
01:58:17,580 --> 01:58:27,660
Director Shua, there is no other project in any of our portfolio. And I actually believe

1355
01:58:27,660 --> 01:58:32,540
in any portfolio of any project in our country

1356
01:58:33,800 --> 01:58:39,880
that actually automatically deducts 35% of the cost

1357
01:58:39,880 --> 01:58:42,840
without any basis to do so.

1358
01:58:43,120 --> 01:58:46,200
You know, the question that I was called badgering

1359
01:58:46,200 --> 01:58:48,300
for asking was the question,

1360
01:58:49,180 --> 01:58:51,960
do we have participation?

1361
01:58:52,760 --> 01:58:55,260
And the answer is no.

1362
01:58:56,080 --> 01:58:56,860
We do not.

1363
01:58:56,860 --> 01:59:07,040
And if we didn't so so that is like no, we're not moving. I'm sure no because A we have that head of chance to vote on this

1364
01:59:07,040 --> 01:59:13,000
And D I use layer 5 I'm not done chair, but you this is my motion

1365
01:59:13,000 --> 01:59:20,140
This is your keep stating it over and over but actually I believe strongly that if you understood this

1366
01:59:20,680 --> 01:59:26,840
You would not be opposed to it because I don't see how anyone who understands what I'm asking for

1367
01:59:26,840 --> 01:59:34,560
would object to it. There is no participation after five years. Do we hope for participation

1368
01:59:34,560 --> 01:59:42,300
certainly? But after five years if there was no participation at 900 million, why would there

1369
01:59:42,300 --> 01:59:49,000
be participation at 5.5 billion? Okay, you need to summarize. So we could follow. In summary,

1370
01:59:56,800 --> 01:59:56,820
my

1371
01:59:56,820 --> 01:59:59,960
Reflect the Actuals.

1372
02:00:00,000 --> 02:00:17,980
State of participation. After 5 years of trying, it is time to amend our direction, a direction that does not apply to any other project that we take more than a third of the cost off the top.

1373
02:00:17,980 --> 02:00:19,040
Thank you for your summer.

1374
02:00:19,340 --> 02:00:21,800
So my most specifically is like this.

1375
02:00:22,540 --> 02:00:32,960
I move that our financial staff be directed to use actual numbers of participation, rather

1376
02:00:32,960 --> 02:00:38,660
than hopeful numbers of participation in their base numbers.

1377
02:00:38,980 --> 02:00:46,400
So that 5.5 billion is no longer, well, if we don't get participation, that is just like

1378
02:00:46,400 --> 02:00:52,220
measure a that we were criticized about. Sure, can a reader look through this and say,

1379
02:00:52,360 --> 02:00:58,580
oh, well, if there's not participation, it's 5.5 billion, but really it's 2.8 billion,

1380
02:00:58,980 --> 02:01:04,940
we can't expect that of the readers. We need to make as the baseline, as the default,

1381
02:01:05,140 --> 02:01:13,380
the truth. The truth is right now, it is 5.5 billion. It is not 2.8 billion. And I believe we are

1382
02:01:13,380 --> 02:01:20,680
potentially misleading the public and each other by using a number that is does not reflect the truth

1383
02:01:20,680 --> 02:01:25,920
and I really think this should not be controversial. All I'm asking is that the numbers be accurate.

1384
02:01:26,800 --> 02:01:27,660
Thank you, Director Shoya.

1385
02:01:30,640 --> 02:01:31,220
Thank you, Chair.

1386
02:01:31,480 --> 02:01:34,800
You'll have the last word on this and then we'll look at the rest of you.

1387
02:01:35,900 --> 02:01:36,220
Okay.

1388
02:01:36,380 --> 02:01:36,800
You'll be in that.

1389
02:01:37,080 --> 02:01:37,360
Director Shoya.

1390
02:01:38,320 --> 02:01:39,960
I guess I'm still struggling.

1391
02:01:41,320 --> 02:01:48,500
As I said earlier that I see these assumptions as if we do have the assumption does come true

1392
02:01:48,500 --> 02:01:54,940
then it could, the project could happen. However, if it doesn't happen, the assumption

1393
02:01:54,940 --> 02:02:06,300
then does not work. And so we make many assumptions financial model. That's my point. I don't

1394
02:02:06,300 --> 02:02:09,360
We don't make an assumption of that thing in anything.

1395
02:02:10,500 --> 02:02:12,080
We don't make an assumption of that thing.

1396
02:02:12,080 --> 02:02:14,880
For example, we assume that we're going to sell,

1397
02:02:14,880 --> 02:02:18,140
I don't know, 375,000 acre sheet of water.

1398
02:02:18,380 --> 02:02:20,540
We may not sell that much water.

1399
02:02:21,080 --> 02:02:25,640
We assume that we're going to receive 15 million dollars from

1400
02:02:25,640 --> 02:02:27,060
a station station.

1401
02:02:27,600 --> 02:02:30,880
But they said, no, we don't have money.

1402
02:02:31,260 --> 02:02:35,560
So there's just many of those assumptions in our financial model.

1403
02:02:35,560 --> 02:02:44,080
So I'm struggling that how do, if we're going to do this for one single project, how do we do it across the board?

1404
02:02:44,780 --> 02:02:48,620
So I'm going to abstain from voting on this.

1405
02:02:49,480 --> 02:02:53,260
Thank you very much. Director Keegan, Vice Chair Keegan, correction.

1406
02:02:53,540 --> 02:02:58,500
Thank you. I have a really quick question of staff, but it is related to these project costs.

1407
02:02:58,500 --> 02:03:06,520
So, and Mr. McCarger, this question actually might come to you, or to Mr. Hakes, it's

1408
02:03:06,520 --> 02:03:13,700
how much do we anticipate expanding to get to what staff is saying is the current decision

1409
02:03:13,700 --> 02:03:21,060
point, which would be, as I understand it, completion of the EIR, unless I'm.

1410
02:03:21,320 --> 02:03:25,320
Yeah, through the chair, I don't have that information in front of me, but I believe the next

1411
02:03:25,320 --> 02:03:30,860
fiscal year, we had around $20 million dollars to be spent in the next fiscal year.

1412
02:03:31,160 --> 02:03:33,880
So adding on to what we spent to date to get to that point.

1413
02:03:34,160 --> 02:03:35,660
And what have we spent to date?

1414
02:03:36,120 --> 02:03:37,180
I think we're around 60.

1415
02:03:38,200 --> 02:03:38,920
Six, zero?

1416
02:03:38,980 --> 02:03:39,600
Yeah, I think.

1417
02:03:39,600 --> 02:03:42,320
Okay, and an additional $20 million.

1418
02:03:42,920 --> 02:03:48,520
And so that would be our actual costs.

1419
02:03:48,880 --> 02:03:51,200
They would never be discounted.

1420
02:03:51,400 --> 02:03:54,360
Well, I don't know, could we get people to buy in

1421
02:03:54,360 --> 02:03:58,180
and ask them to participate in the project cost up to that point.

1422
02:03:58,460 --> 02:04:00,020
I think that would be kind of hard to do.

1423
02:04:01,260 --> 02:04:03,100
So one point of clarification, Dr. Keegan.

1424
02:04:03,420 --> 02:04:05,160
The 20 million is a reimbursement.

1425
02:04:05,660 --> 02:04:08,340
So it's the 60 million currently expanded minus the 20 million

1426
02:04:08,340 --> 02:04:08,820
we've received.

1427
02:04:09,120 --> 02:04:10,740
So we've expanded a total of 40 million

1428
02:04:10,740 --> 02:04:13,380
to date with an additional 20 projected for next year.

1429
02:04:13,920 --> 02:04:14,700
So at the end of next year,

1430
02:04:14,780 --> 02:04:17,620
we will be projecting about 60 million in total expenditures.

1431
02:04:18,280 --> 02:04:22,140
OK, and then if we don't get participation, that's all on us.

1432
02:04:22,140 --> 02:04:28,920
I guess the point that I'm trying to make is that we're going to be dealing with certain costs

1433
02:04:28,920 --> 02:04:35,220
until we get to what is, I believe, staffs recommended decision point, I'm not sure I

1434
02:04:35,220 --> 02:04:41,760
completely agree with that, but would be completion of the EIR and seeing who wishes to participate

1435
02:04:41,760 --> 02:04:51,940
at that time. Is that sort of accurate or, okay? All right, I just wanted everyone to be

1436
02:04:53,990 --> 02:04:56,550
Okay, now I understood what you've done?

1437
02:04:57,290 --> 02:04:57,470
Okay.

1438
02:04:57,830 --> 02:04:58,470
Director Eisenberg?

1439
02:05:01,520 --> 02:05:04,660
Again, I love math. So earlier,

1440
02:05:06,680 --> 02:05:26,100
a staff member said that the portions that would be owed that is currently owed by the water agency that theoretically will pay 2.5%, so this is to answer your question to actor Keegan, so 2.5% is valued at $700,000.

1441
02:05:26,100 --> 02:05:38,960
So I'm really going to math, especially Algebra, so if $700,000 is $2.5% of $28 million.

1442
02:05:39,600 --> 02:05:43,000
So that's actually $28 million, not $20 million.

1443
02:05:43,880 --> 02:05:46,340
So these numbers just fly all over the place.

1444
02:05:46,880 --> 02:05:54,440
I guess $8 million could house a thousand unhoused people.

1445
02:05:57,260 --> 02:06:04,620
You know, maybe we spent 20 million on this, maybe we spent 28 million on this, who knows?

1446
02:06:05,560 --> 02:06:13,540
So should not be an eight million dollar gap between what what staff one staff member says and what the other staff member says.

1447
02:06:14,260 --> 02:06:26,560
That is very frustrating to me because again, and I wrote this down, the amount that the 2.5% theoretical participant would

1448
02:06:26,560 --> 02:06:37,200
Oh, wrote it down $700,000 and that allowed me to figure $700,000 is $2.5% of 28 million.

1449
02:06:38,140 --> 02:06:41,560
So was the $20 million figure given?

1450
02:06:41,920 --> 02:06:45,200
Did that also assume 35% participation?

1451
02:06:46,880 --> 02:06:51,920
There was no participation assumed in the $20 million figure for next year.

1452
02:06:52,080 --> 02:06:56,040
The $700,000 is right back up to the cost have been spent to date.

1453
02:06:56,040 --> 02:06:59,160
So the 20 million is a projection of cost upcoming.

1454
02:06:59,800 --> 02:07:04,000
So I really thought you said that we only spent 20 million last year.

1455
02:07:04,520 --> 02:07:06,880
So again, and that is net.

1456
02:07:07,540 --> 02:07:10,460
We actually think I think I heard you say we spent 60 million,

1457
02:07:10,840 --> 02:07:14,880
but 40 million was reimbursed and arguably that 40 million,

1458
02:07:14,960 --> 02:07:18,960
I mean, I think that 40 million is relevant because with 40 million dollars,

1459
02:07:19,360 --> 02:07:21,740
we could house every single unhoused person.

1460
02:07:21,740 --> 02:07:28,640
We have it's been at 60 million today, up which 20 million has been reimbursed by the state for a net of 40 million total.

1461
02:07:29,180 --> 02:07:31,460
So it's actually 40 million that we've got.

1462
02:07:33,890 --> 02:07:37,770
Okay, so again, my motion is that we use that we...

1463
02:07:37,770 --> 02:07:40,930
Okay, we'll just have to move on with this agenda.

1464
02:07:41,250 --> 02:07:43,830
Okay, but we have it on with the agenda right now.

1465
02:07:43,850 --> 02:07:44,990
We have a third of the board.

1466
02:07:45,290 --> 02:07:50,590
We have a motion on the table, and it has been amended from what I understand.

1467
02:07:50,590 --> 02:07:55,730
Can you please state the motion so we can vote on this?

1468
02:08:01,150 --> 02:08:06,390
I believe it was what Director Eisenberg restated her motion.

1469
02:08:06,770 --> 02:08:10,130
The restatement didn't have a second, but I believe that there was two.

1470
02:08:10,550 --> 02:08:15,630
Again, it was prices, prices given that reflect the actual state of participation,

1471
02:08:15,970 --> 02:08:18,150
which is basically the same as the second motion,

1472
02:08:18,450 --> 02:08:21,050
provide actual models, reflecting current state of participation.

1473
02:08:21,050 --> 02:08:29,750
And then request that staff use actual numbers of participation rather than hopeful numbers of participation in future presentations.

1474
02:08:30,670 --> 02:08:32,650
Okay, so we have a motion and we have a second.

1475
02:08:32,690 --> 02:08:34,050
Did you amend the second?

1476
02:08:36,010 --> 02:08:38,190
I will accept that.

1477
02:08:38,390 --> 02:08:40,870
Okay, so to the first measure.

1478
02:08:41,150 --> 02:08:42,950
All those in favor signify by saying aye.

1479
02:08:45,040 --> 02:08:46,080
All those opposed?

1480
02:08:46,780 --> 02:08:47,300
No.

1481
02:08:48,780 --> 02:08:51,540
So I want to abstention.

1482
02:08:52,200 --> 02:08:57,360
And we have, I didn't hear you, Dr. Bell, I didn't hear your vote.

1483
02:08:58,280 --> 02:08:59,480
Okay, so the majority, no.

1484
02:09:01,300 --> 02:09:05,200
Okay, so do we have another motion to vote on, or is it what we've done on this?

1485
02:09:07,390 --> 02:09:08,690
Are we critical of the board?

1486
02:09:08,890 --> 02:09:09,210
Is there another?

1487
02:09:10,090 --> 02:09:16,570
I believe that Director Eisenberg's substitute motion captures everything that we have.

1488
02:09:16,570 --> 02:09:17,710
Okay, thank you.

1489
02:09:17,870 --> 02:09:20,030
Let's go on with the presentation, Mr. Hakes.

1490
02:09:20,410 --> 02:09:20,910
Thank you.

1491
02:09:21,330 --> 02:09:21,530
Okay.

1492
02:09:21,530 --> 02:09:28,010
So to continue talking about project funding, these are the revenue sources we current are

1493
02:09:28,010 --> 02:09:29,490
either seeking or have in hand.

1494
02:09:30,050 --> 02:09:34,150
The original grant from the California Water Commission for Prop 1 has been increased to

1495
02:09:34,150 --> 02:09:36,830
504 million to partially account for inflation.

1496
02:09:37,310 --> 02:09:42,310
Of that 24.2 million is eligible to be received in early funding.

1497
02:09:42,830 --> 02:09:48,210
We are in the process of going through an application for a with your loan for up to

1498
02:09:48,210 --> 02:09:52,950
$1.4 billion dollars, those are repaid through groundwater charges as initially noted.

1499
02:09:54,030 --> 02:09:59,410
We are pursuing federal grants first through the U.S. Department or U.S. Bureau of Reclamation.

1500
02:10:00,000 --> 02:10:09,220
And basically, we've gone through their design environmental and contractability review process, and received no official comments, which is actually something that typically doesn't happen.

1501
02:10:09,820 --> 02:10:17,860
But we do need recommendation or Department of Interior approval to be in line for federal funds through the Infrastructure Act that was passed by the Biden administration.

1502
02:10:18,480 --> 02:10:24,400
And finally, I think we've had a large discussion on this. We are currently targeting 35% partner participation.

1503
02:10:25,800 --> 02:10:30,840
One note on the early funding that we received, this slide is a tad bit out of date.

1504
02:10:31,240 --> 02:10:34,600
We have received approximately 20 million out of the 24.2 million.

1505
02:10:35,200 --> 02:10:42,700
That money is repable to the state if we do not meet the prop one requirements as outlined.

1506
02:10:43,740 --> 02:10:46,860
Just for a little background on that for the board on what that means.

1507
02:10:47,160 --> 02:10:51,580
It means in our discussions with the California Water Commission staff, if we reach a determination

1508
02:10:51,580 --> 02:10:57,000
of infisibility for the project, either through environmental infisibility, technical infisibility,

1509
02:10:57,440 --> 02:11:02,680
or economic infisibility. Basically, if we have facts to back up the fact that we either

1510
02:11:02,680 --> 02:11:07,260
can't afford it, it's too environmentally damaging or it can't be built, then that money will

1511
02:11:07,260 --> 02:11:12,200
not be reimbursed or will not need to be reimbursed to the state. They consider the effort that

1512
02:11:12,200 --> 02:11:19,020
goes into that kind of study and outcome to be worthwhile and beneficial. However, if we were to

1513
02:11:20,980 --> 02:11:24,520
arbitrarily what I would say is for convenience decide to pull out of the project.

1514
02:11:25,160 --> 02:11:28,940
There is the possibility that the state could request that money back.

1515
02:11:29,200 --> 02:11:30,680
So the 20 million we've received today.

1516
02:11:34,320 --> 02:11:35,920
And that takes us to the end of this section for questions.

1517
02:11:46,330 --> 02:11:48,990
Okay. I'm going to go ahead and move along to our last section,

1518
02:11:49,170 --> 02:11:50,710
which is our milestone review.

1519
02:11:51,610 --> 02:11:54,070
Highlight, this is a good snapshot of where we've been.

1520
02:11:54,510 --> 02:11:57,070
And then the right portion of the slide shows kind of where we are.

1521
02:11:57,810 --> 02:12:03,570
Basically, the highlighted portion that says like 2023 are the environmental and biological

1522
02:12:03,570 --> 02:12:06,030
investigations that we'll be doing on site.

1523
02:12:06,810 --> 02:12:11,750
We have suspended our drilling operations due to the winter months and the wet environment.

1524
02:12:12,130 --> 02:12:16,170
But there are still environmental and biological surveys going on on site and that's by foot.

1525
02:12:18,310 --> 02:12:23,330
On this slide, you'll see what we consider to be upcoming board participation points.

1526
02:12:23,330 --> 02:12:36,110
You can see in late 2024 or 60% design will be completed, excuse me, that coincides with the finalization of the water supply master plan, which is why it is staffs recommended point to come back and kind of take another look at the project.

1527
02:12:36,790 --> 02:12:52,730
We will have a recirculation of the draft DIR in mid 2025, the 90% design completed in late 2025, 100% design in mid-26, as well as our final EIR EIS at that time will have our permits in hand, and basically ready to go to construction in mid-27.

1528
02:12:54,860 --> 02:13:03,420
So in terms of the work study session and staffs recommendation, I think you had heard me talk about some of the feasibility determinations

1529
02:13:03,420 --> 02:13:08,280
that would play into repayment of early funding from the California Water Commission.

1530
02:13:09,280 --> 02:13:12,100
We have focused on three areas, technical, environmental and economic.

1531
02:13:12,560 --> 02:13:23,540
In terms of having information on all those areas, 60% design level is the next milestone that will have information available for all three of those areas.

1532
02:13:23,540 --> 02:13:31,800
We'll have our design, basically, advance to the point at which we will know with fairly good substance what will go into the draft EIR.

1533
02:13:32,160 --> 02:13:40,740
We will have an updated cost estimate and from a technical perspective, we'll have kind of short-up some of the PDE and site access issues.

1534
02:13:42,840 --> 02:13:51,000
The remaining slides just illustrate that at the future decision points that you can see there are your future participation points, there will be additional information available.

1535
02:13:51,840 --> 02:13:56,440
realistically speaking, we will not have a finalized cost for the project until we actually

1536
02:13:56,440 --> 02:14:00,320
have our permits in hand and have gone through the process and are ready to go to construction.

1537
02:14:01,060 --> 02:14:05,400
We'll have an engineer's estimate in mid-2027, but we will not have the final cost until

1538
02:14:05,400 --> 02:14:07,000
construction contract award.

1539
02:14:07,900 --> 02:14:11,060
So this is just kind of a summary table, I can go back to any of the particular milestones

1540
02:14:11,060 --> 02:14:15,080
if you would like, but I believe it's the board's desire to kind of reevaluate the project

1541
02:14:15,080 --> 02:14:19,480
on a more frequent basis rather than less frequent basis, which is why a staff is recommending

1542
02:14:19,480 --> 02:14:26,660
that we evaluate the project again within the context of the water supply master plan at the 60% design level.

1543
02:14:29,530 --> 02:14:30,930
That takes us back to our board actions.

1544
02:14:31,110 --> 02:14:34,630
You've gone through the first two. You received information on our water supply master plan.

1545
02:14:34,830 --> 02:14:39,510
You received information on the milestone review for the particular reservoir expansion project.

1546
02:14:39,990 --> 02:14:43,230
Our recommendation is to schedule a future work study session not necessarily today,

1547
02:14:43,310 --> 02:14:48,590
but in the future on the water supply master plan portfolio around the time to take over to 60%.

1548
02:14:48,590 --> 02:14:51,370
But as always, this is an action item.

1549
02:14:51,650 --> 02:14:54,650
The board is free to provide whatever direction they see fit the staff.

1550
02:14:57,270 --> 02:14:59,970
Okay, thank you and I believe.

1551
02:15:01,600 --> 02:15:12,700
Thank you, Vice Chair. Chris, thank you for your presentation, and I have a request for this

1552
02:15:13,760 --> 02:15:24,660
budget schedule that based on our current budget delivery charges is any that's applicable to any capital

1553
02:15:24,660 --> 02:15:32,180
project. The board does not actually approve the project until somewhere between May

1554
02:15:32,180 --> 02:15:40,960
2026 and May 2027. Is that correct? Yeah. So I think it's important to add that to this chart.

1555
02:15:41,520 --> 02:15:44,820
And then, sometimes,

1556
02:15:46,880 --> 02:15:54,340
anyway, so the board takes formal action to approve a specific

1557
02:15:54,340 --> 02:16:01,560
project and that's for any project that's couldn't in a CIP. So I think that's an important

1558
02:16:01,560 --> 02:16:05,180
point to recognize and

1559
02:16:09,300 --> 02:16:18,740
also that they are the intent of this milestone time timeline is

1560
02:16:18,740 --> 02:16:27,820
You are identified that they are several board decision points leading to the project approval.

1561
02:16:29,300 --> 02:16:38,920
It could be that the first point, which is your staff's proposed time, is 20-24.

1562
02:16:39,500 --> 02:16:45,400
After 60%, maybe if that decision point, a decision is made not to move forward.

1563
02:16:45,400 --> 02:16:53,820
But then still I think it's important that it's a several decision point, but then any of the decision point

1564
02:16:53,820 --> 02:17:05,240
It's not approval of the project, the project based on our project in the real process. It's not until all the, at least the email and the document is complete and circulated.

1565
02:17:05,300 --> 02:17:09,240
That is correct. The board does have to certify our environmental.

1566
02:17:09,240 --> 02:17:16,480
I think this chart probably will be a plenty of opportunities for you to talk to other people,

1567
02:17:16,660 --> 02:17:22,580
which is important to have those things clear in the church.

1568
02:17:24,480 --> 02:17:27,200
Thank you, and now Director Bell.

1569
02:17:32,640 --> 02:17:37,440
This is very informative to me as a new member, and I thank you for a presentation.

1570
02:17:37,440 --> 02:17:50,050
And I am looking for more of a financial decision timeline in a addition to what we have here.

1571
02:17:50,230 --> 02:17:52,150
We have the environmental design timeline.

1572
02:17:52,330 --> 02:17:59,170
I think we need a financial timeline to clarify financial aspects of the project.

1573
02:18:00,630 --> 02:18:04,070
My preference would be if we're going to move ahead here.

1574
02:18:04,070 --> 02:18:08,890
We should have financial points

1575
02:18:11,290 --> 02:18:14,170
of time where we get the financial information.

1576
02:18:14,510 --> 02:18:19,030
I'd like to have the staff come back and develop that and have it discuss perhaps in

1577
02:18:19,030 --> 02:18:29,230
our committee, the capital budget committee, or in some way so that we can refine it as we

1578
02:18:29,230 --> 02:18:29,770
go along.

1579
02:18:29,770 --> 02:18:32,850
We can't wait till it's 60% to determine finances.

1580
02:18:33,210 --> 02:18:33,950
This is what I'm trying to say.

1581
02:18:33,950 --> 02:18:42,430
I think we need to move along and clarify work on the financial aspects.

1582
02:18:44,390 --> 02:18:48,830
All the questions asked by every board member here should be explored.

1583
02:18:50,110 --> 02:18:54,470
We have a finance process with the capital budget reviews.

1584
02:18:55,790 --> 02:19:00,210
This should be maybe an adjunct or in addition to that process.

1585
02:19:00,210 --> 02:19:00,710
Okay,

1586
02:19:03,470 --> 02:19:10,810
types of things I'm looking for is strategic costs, look at the overall strategic

1587
02:19:10,810 --> 02:19:16,790
cost of the strategies we have, we have good strategies, I think we have to identify

1588
02:19:17,370 --> 02:19:25,890
strategic costs that could be over a period of time, longer period of time so we can

1589
02:19:25,890 --> 02:19:30,230
get a good idea of, like somebody said earlier,

1590
02:19:30,370 --> 02:19:32,390
the next generation looking at that

1591
02:19:32,390 --> 02:19:35,170
and find out what they're going to end up paying.

1592
02:19:37,850 --> 02:19:40,910
In terms of the strategy one, I was like,

1593
02:19:40,930 --> 02:19:43,450
well, that should really be a longer term.

1594
02:19:45,290 --> 02:19:48,470
In terms of looking at that, the state and federal water

1595
02:19:49,370 --> 02:19:53,010
distribution costs for both the canals and pumps

1596
02:19:53,010 --> 02:19:58,810
seem to be part of our cost in some way that we should calculate.

1597
02:20:00,000 --> 02:20:09,180
Those are, you know, like we're on joint power's boards and, you know, we put money into those and

1598
02:20:11,390 --> 02:20:23,890
the overall cost of those various projects and decisions obviously made by others that joint power boards in the state and credit government, so like the Bureau of Reclamation, for example.

1599
02:20:23,890 --> 02:20:34,290
And we need to look at full aspects of those Delta conveyance costs, like the Delta Plan keeps changing.

1600
02:20:35,870 --> 02:20:41,030
I just cited as political back and forth in Sacramento for a number of years.

1601
02:20:41,250 --> 02:20:46,190
They had, I'm a strong believer of the state water plan.

1602
02:20:46,190 --> 02:20:57,670
And the adopted plan that we had, where we had the dual supply conservation priorities

1603
02:20:57,670 --> 02:21:02,610
in the 1929 Act, which I think is being

1604
02:21:04,750 --> 02:21:11,490
amended by 1,000 cuts, including our executive

1605
02:21:11,490 --> 02:21:19,030
water we just had from the governor. Climate change aspects are now important to the public.

1606
02:21:19,270 --> 02:21:27,950
We should include those in our strategic viewpoint and cost. What is the cost and from

1607
02:21:27,950 --> 02:21:35,310
climate change, in terms of full cost, federal, state, local,

1608
02:21:39,330 --> 02:21:40,450
those kinds of strategies.

1609
02:21:41,570 --> 02:21:47,730
I'm particularly, when I look at budgets and strategies, I look at what's moving forward

1610
02:21:47,730 --> 02:21:50,470
and what's not moving forward so much.

1611
02:21:51,030 --> 02:21:56,790
Okay, to be honest about it, I don't think the groundwater and the recycling is moving forward

1612
02:21:56,790 --> 02:21:58,270
to my satisfaction.

1613
02:21:59,590 --> 02:22:07,030
I think those aspects of, I think, I think, you know, we had, you know, in our recycling

1614
02:22:07,990 --> 02:22:15,830
committee, we had the aspect of being stymied in the sound as I, and I'm working very,

1615
02:22:15,830 --> 02:22:19,890
very hard to make that change, very hard.

1616
02:22:20,110 --> 02:22:25,810
I'm working with a lot of people in my community that I grew up with that really want to

1617
02:22:25,810 --> 02:22:34,030
that and I'm working with council members, the city administration, the mayor, others, others

1618
02:22:34,030 --> 02:22:41,550
that are legislators that are willing to develop a consensus to the business community,

1619
02:22:42,230 --> 02:22:53,010
to develop a consensus that we move ahead with a recycle project that's equal to other parts

1620
02:22:53,010 --> 02:23:00,850
state in terms of order magnitude. We don't have that in this strategy. We have a maybe a

1621
02:23:00,850 --> 02:23:07,810
two small recycled strategy. It's two small. We got to make it the right side. We have to

1622
02:23:07,810 --> 02:23:13,310
right size that as a goal. So I'm looking at groundwater.

1623
02:23:15,630 --> 02:23:18,490
One thing about groundwater is that

1624
02:23:18,490 --> 02:23:25,210
And there could be a strategic view with partners to do a better job in Santa Clara County

1625
02:23:25,210 --> 02:23:31,030
with groundwater and that will take another strategic view point as well.

1626
02:23:31,850 --> 02:23:39,150
The flooding that occurred recently, for example, what can we do to talk to the share

1627
02:23:39,150 --> 02:23:39,730
about this?

1628
02:23:40,550 --> 02:23:43,850
It was like frightened that we'd have deaths.

1629
02:23:44,130 --> 02:23:47,510
We'd have, you know, this is something we have to, that's one of our main

1630
02:23:49,850 --> 02:23:50,810
goals, you

1631
02:23:50,810 --> 02:23:54,190
to prevent people from dying, you know.

1632
02:23:54,950 --> 02:23:55,910
We have to do that.

1633
02:23:56,050 --> 02:24:04,610
We have to do everything we can and believe me, I natural disasters,

1634
02:24:06,850 --> 02:24:08,250
I know that should be a

1635
02:24:08,250 --> 02:24:08,510
priority.

1636
02:24:09,530 --> 02:24:18,570
So everything we can in terms of, like for example, the Chaco Project, I was looking at what

1637
02:24:18,570 --> 02:24:23,770
What is the watershed of the Chaco Creek and who is responsible for that watershed and are

1638
02:24:23,770 --> 02:24:31,210
they willing to participate in that project because it certainly has a benefit as I found

1639
02:24:31,210 --> 02:24:33,270
out today by your presentation.

1640
02:24:34,470 --> 02:24:43,810
There's a benefit to the watershed and to what extent are they willing to, that's a joint

1641
02:24:43,810 --> 02:24:49,590
hours as I understand between the three counties, the Monterey Santa Cruz and Santa

1642
02:24:49,590 --> 02:24:53,450
Clarke counties, and San Benito counties, the four counties I understand.

1643
02:24:54,950 --> 02:24:59,970
If I'm not wrong, are they wanting to, you know, jointly participate.

1644
02:25:00,000 --> 02:25:08,500
Disappeate and maybe some solutions that might help. And if so, are those projects, those types of projects,

1645
02:25:10,980 --> 02:25:27,720
not from the water supply standpoint, but more of the flood control standpoint, are they willing to participate in preventing potential lives lost property damage and so forth.

1646
02:25:29,120 --> 02:25:54,020
So those are my thoughts on strategic, I think in summary, I think financial aspects, we have to have a calendar, I like to have that come back, maybe add that to the motion, recommendation, have financial aspects come back, and clarify some of the issues and cost, it'll take a lot of work.

1647
02:25:56,080 --> 02:26:04,960
My experience on projects that are jointly funded by various government is that you don't know all the answers about whether or not some other government entity is going to have.

1648
02:26:05,100 --> 02:26:06,860
It's a little bit of a poker game.

1649
02:26:08,640 --> 02:26:14,640
When I worked with Congressman Maneta, what he devised when he was the chair of the House Public Works Committee,

1650
02:26:14,640 --> 02:26:18,820
You see developed a thing called a sort of like a memorandum

1651
02:26:18,820 --> 02:26:21,300
understanding, but it's a full funding grant agreement

1652
02:26:21,840 --> 02:26:24,280
was put into the Federal Transportation Act.

1653
02:26:24,920 --> 02:26:27,860
In the 90s, and what that is is a grant agreement

1654
02:26:27,860 --> 02:26:31,100
that we will presume in this grant

1655
02:26:31,100 --> 02:26:33,220
that we give you from the federal government

1656
02:26:33,220 --> 02:26:37,100
that you will come up with a certain percentage

1657
02:26:37,720 --> 02:26:40,800
and you have to before we will give you the money

1658
02:26:40,800 --> 02:26:51,280
actually come up with the dollars and contribute those participation grant agreements.

1659
02:26:52,940 --> 02:26:59,180
That has been the way major transit projects have been funded around the country in the last 25 years since

1660
02:26:59,180 --> 02:27:09,200
Normandetta Institute that I stole that idea in SB1 we put it in the state grant agreements for

1661
02:27:09,200 --> 02:27:11,600
transportation projects in California.

1662
02:27:12,020 --> 02:27:17,100
So now that is the multi your full funding grant agreement

1663
02:27:17,100 --> 02:27:19,760
concept in transportation projects.

1664
02:27:20,400 --> 02:27:28,000
So you don't necessarily know exactly the project cost,

1665
02:27:28,200 --> 02:27:30,720
but you know that you're going to have a partner

1666
02:27:30,720 --> 02:27:33,460
and you sign an agreement that you're going to have a partner.

1667
02:27:34,180 --> 02:27:37,380
That could be part of a financial milestone

1668
02:27:37,920 --> 02:27:44,320
that we have to pass at a certain point so that we know we have a partner. So what

1669
02:27:44,320 --> 02:27:50,420
point do we need to know we have a partner? And I think that's a key question.

1670
02:27:52,800 --> 02:27:53,240
Mr.

1671
02:27:53,360 --> 02:28:05,840
Sherman, I would like to have a referral with those remarks as part of a motion.

1672
02:28:05,840 --> 02:28:09,180
other, I want to hear what other members have to say about data.

1673
02:28:09,240 --> 02:28:16,040
I think this would improve our understanding of the construction timeline and project

1674
02:28:16,040 --> 02:28:17,960
and especially cost.

1675
02:28:19,920 --> 02:28:23,280
The Delta Convenience Project needs to be included.

1676
02:28:23,300 --> 02:28:30,820
I was wondering on the import water strategy, does the, when you look ahead 20, 30 years,

1677
02:28:31,700 --> 02:28:41,400
Don't we have to, in that period of time, basically replace the state water project, the

1678
02:28:41,400 --> 02:28:46,960
federal water project canals, and so forth, the facilities, the pumps, aren't those

1679
02:28:46,960 --> 02:28:55,520
part of the import water cost, if so, are they included in this, is that something that

1680
02:28:55,520 --> 02:29:04,060
should acknowledge that that's part of, you know, realistically it's part of the cost of

1681
02:29:04,640 --> 02:29:06,460
doing such a project.

1682
02:29:07,500 --> 02:29:12,900
It's fair to look at, even though we might not be the main lead agency, I think those

1683
02:29:12,900 --> 02:29:23,220
costs will accrue to people in Santa Clara County, it's fair to assume, because I believe

1684
02:29:23,220 --> 02:29:26,840
they are in some way now accruing to us.

1685
02:29:29,080 --> 02:29:32,220
So the financial aspects of a little week here,

1686
02:29:32,340 --> 02:29:35,340
we need to prop it up, we need to have milestones

1687
02:29:35,340 --> 02:29:40,500
in that timeline and understand that aspect more

1688
02:29:40,500 --> 02:29:41,480
as we move along.

1689
02:29:41,940 --> 02:29:45,700
I would actually, if I'd like to hear

1690
02:29:45,700 --> 02:29:47,440
what other people have to say about that,

1691
02:29:47,440 --> 02:29:49,460
that's my conclusion after reading all this

1692
02:29:50,040 --> 02:29:52,100
and putting a lot of energy into studying

1693
02:29:52,100 --> 02:29:59,960
had been fair and listening to having various people talk to me about the full-

1694
02:30:00,000 --> 02:30:08,920
All aspects of the project, and I have a lot to learn still, so please bear that in mind. I've only been here, but this is my third month.

1695
02:30:11,020 --> 02:30:13,860
And I'm listening to my colleagues, and I like to hear what they have to see.

1696
02:30:14,260 --> 02:30:19,700
So Mr. Chairman, if that could be added to any approval or process, I would appreciate it. Thank you, Mr. Chairman.

1697
02:30:19,700 --> 02:30:21,520
Thank you, Cliff of the Board.

1698
02:30:21,680 --> 02:30:23,540
You've made comment and notes of that.

1699
02:30:23,540 --> 02:30:25,080
Capture that, it's best to cat.

1700
02:30:25,780 --> 02:30:28,180
Mr. Chair, does this have another action item?

1701
02:30:29,040 --> 02:30:31,080
So maybe this could be direction to staff.

1702
02:30:31,420 --> 02:30:32,020
Yes, I'm moving.

1703
02:30:32,060 --> 02:30:34,280
We could do that.

1704
02:30:34,280 --> 02:30:35,400
You give it that direction.

1705
02:30:36,520 --> 02:30:38,440
Yeah, so that, yes, we'll do that.

1706
02:30:38,480 --> 02:30:39,080
Thank you.

1707
02:30:39,300 --> 02:30:39,940
Dr. Bell, you're here with that.

1708
02:30:39,940 --> 02:30:40,300
Thank you.

1709
02:30:40,840 --> 02:30:41,440
Yeah, please go to that.

1710
02:30:41,800 --> 02:30:45,140
And so by the way, I just want to do, oh, sure.

1711
02:30:51,970 --> 02:30:53,410
Your mic is not on, so.

1712
02:30:54,330 --> 02:30:54,530
All right.

1713
02:30:54,530 --> 02:31:01,010
I want to ask something on top of what there are to build a direction to step.

1714
02:31:01,310 --> 02:31:06,890
I know I'm number four, but I just thought I'd go with that.

1715
02:31:08,370 --> 02:31:17,310
So I totally in agreement because again, we have these three strategies and these three strategies.

1716
02:31:17,310 --> 02:31:32,770
They're like a box and then each strategy is building on top of these other strategy and then the foundation of these strategies is really strategy number one secure existing supplies and infrastructure

1717
02:31:32,770 --> 02:31:40,590
So there are to about mention that the Delta Cummings project that's actually under strategy work and my

1718
02:31:40,590 --> 02:31:52,150
My concern in war, it has always been that exactly how big is our retrofit effort in securing

1719
02:31:52,150 --> 02:31:53,970
existing supplies and infrastructure.

1720
02:31:56,250 --> 02:32:03,430
So I'm adding on top of what Director Bell just said that I'd really like to see that

1721
02:32:03,430 --> 02:32:08,930
in the next 15 to 20 years, these Pythramon maintenance damage

1722
02:32:08,930 --> 02:32:11,010
retrofit treatment on improvements.

1723
02:32:15,900 --> 02:32:26,240
I guess the financial schedule, what we're thinking, the best estimate we have in cash

1724
02:32:28,460 --> 02:32:36,120
or the need for these existing infrastructure, I know we're focusing on

1725
02:32:36,120 --> 02:32:45,740
But then assuming 10 years innocent then will be done so the next 10 years there's going to be or even on next starting next five years

1726
02:32:46,740 --> 02:32:55,340
Just so I really like to see that in a longer term a financial planning for infrastructure

1727
02:32:56,240 --> 02:33:01,220
And so that's that's my request that they'll top two director

1728
02:33:01,920 --> 02:33:03,420
Okay, glad you all

1729
02:33:03,420 --> 02:33:05,380
Thank you, director Eisenberg.

1730
02:33:08,740 --> 02:33:12,560
This is directly responsive to director Bout.

1731
02:33:13,840 --> 02:33:14,480
So,

1732
02:33:16,740 --> 02:33:19,680
I have spent a lot of time researching this.

1733
02:33:20,520 --> 02:33:23,480
At least a year, even before I decided to run,

1734
02:33:24,380 --> 02:33:26,920
I was ran a contested campaign,

1735
02:33:27,900 --> 02:33:31,480
and I spent, you know, unlike a couple of my colleagues.

1736
02:33:31,480 --> 02:33:34,940
So I spent a lot of time meeting with all the principals

1737
02:33:35,520 --> 02:33:38,400
and our constituents, because I considered this year

1738
02:33:38,400 --> 02:33:39,320
a club, our constituents.

1739
02:33:40,400 --> 02:33:42,820
I considered the amomlets and tribe, our constituents,

1740
02:33:43,260 --> 02:33:46,220
both of whom are suing us, because they opposed the dam.

1741
02:33:47,880 --> 02:33:51,980
And I did do a bunch of deep dyes into this.

1742
02:33:52,620 --> 02:33:58,300
So I apologize for any frustration I have.

1743
02:33:58,300 --> 02:34:04,440
It's because it's, I just get frustrated when I feel like

1744
02:34:04,440 --> 02:34:09,720
that public isn't given transparency that I promised

1745
02:34:09,720 --> 02:34:11,720
my constituents they would have.

1746
02:34:12,340 --> 02:34:16,100
So, but anyway, directly responsive to Director Bell.

1747
02:34:17,160 --> 02:34:21,200
So, I've worked on projects involving

1748
02:34:21,200 --> 02:34:23,780
joint, here they're called joint power,

1749
02:34:23,800 --> 02:34:26,520
joint JPA's, joint power authorities,

1750
02:34:26,520 --> 02:34:43,280
But literally, for more than two decades, I've worked on projects worth, you know, billion dollar projects, that involves, you know, multiple parties there, including, you know, an IPO, you know, there's different parties involved in these are what multi-party agreements.

1751
02:34:44,100 --> 02:34:45,480
That is what a JPA handles.

1752
02:34:46,580 --> 02:34:52,980
And there's no JPA for this because no one else wants to participate in it after five years.

1753
02:34:52,980 --> 02:34:59,980
And so, my experience across the board, with these JPAs, you know, multi-price.

1754
02:35:00,000 --> 02:35:09,020
Party agreements is that when participants don't want to wait till it's 60% designed to join.

1755
02:35:09,980 --> 02:35:18,640
Participants want to take part in the designing. I mean, across the board, it's participants

1756
02:35:18,640 --> 02:35:30,460
like to take part in designing. And it is, again, I'm faced with this bizarre reality distortion

1757
02:35:30,460 --> 02:35:40,860
field here because it, it is just, it doesn't mesh with external reality that a participant

1758
02:35:40,860 --> 02:35:50,440
would be more likely to join in this project when it's 60% designed than they would when

1759
02:35:50,440 --> 02:36:02,440
it's 30% designed. So I am seeing here that we are apparently not given an option to stop

1760
02:36:02,440 --> 02:36:12,960
this now cut our losses at 30%, rather we are told we should go to 60%, and at that point,

1761
02:36:13,180 --> 02:36:17,100
we apparently will evaluate whether we or not we all have partners.

1762
02:36:17,880 --> 02:36:21,120
So this is really to answer my colleague's question.

1763
02:36:21,560 --> 02:36:28,160
He said, when are we going to say that we have tried hard enough and no one wants to join

1764
02:36:28,160 --> 02:36:29,920
the JPE and do this with us?

1765
02:36:29,920 --> 02:36:37,960
And I think you have answered that, or do we need to make that very clear that if at 60%

1766
02:36:38,560 --> 02:36:45,300
there is no one joining us, then is that what you're saying?

1767
02:36:45,500 --> 02:36:48,780
I just, or a Mr. CEO, is that what you're saying?

1768
02:36:50,660 --> 02:36:51,260
Sure, cheers.

1769
02:36:51,960 --> 02:36:55,900
We will respond to any direction that the board was to provide.

1770
02:36:55,900 --> 02:37:01,280
the board chooses to make a motion that they don't want us to move forward after today.

1771
02:37:01,500 --> 02:37:06,940
We will respect the majority of the board. The board provides us direction to come back at

1772
02:37:06,940 --> 02:37:13,000
60 percent and to make up for the recommendation, we will abide by the direction of the board.

1773
02:37:13,340 --> 02:37:17,320
So I believe that the director's question is actually a question of the board itself.

1774
02:37:18,760 --> 02:37:22,700
Thank you, CEO. Okay. Well, director Kagan, you have a four.

1775
02:37:25,390 --> 02:37:34,330
Thank you and I actually believe that the way the agenda item is written I don't believe the board can take action today.

1776
02:37:34,450 --> 02:37:35,470
The information only.

1777
02:37:37,030 --> 02:37:41,450
So, thank you to everyone for your input.

1778
02:37:42,090 --> 02:37:51,730
I appreciate Director Bell's fiscal comments because since the financial issues are my big concern,

1779
02:37:51,730 --> 02:38:20,990
I'm interested in those as well and I think that our constituents are also, so I think that this idea of saying when we can make a future decision and I don't want to wait to schedule a future work study session on the water supply master plan portfolio until this project is at the 60% design level, I think this needs to be something that's ongoing

1780
02:38:20,990 --> 02:38:33,370
As we find more information on cost, more information on potential partners, more information and feedback from our stakeholders in general.

1781
02:38:34,030 --> 02:38:47,470
I did just want to point out a couple of things, and I have pointed them out before, but I'll try and be succinct and just say that I want us to be cognizant to the fact that this is a very, very big project.

1782
02:38:47,470 --> 02:38:54,130
and it's bigger than anything we've done before and I so I not only worry about the financial

1783
02:38:54,130 --> 02:39:03,070
issues but I worry about being spread to thin. So the other obvious thing is our water retailers

1784
02:39:03,070 --> 02:39:11,470
don't support this and me that's a pretty big deal and then lastly I don't know if everyone else

1785
02:39:11,470 --> 02:39:20,470
was taken as by surprise as much as I was, maybe I'm naive, but we just recently went through

1786
02:39:20,470 --> 02:39:27,150
this cryptocurrency collapse that was pretty shocking. And though I guess I wasn't

1787
02:39:27,150 --> 02:39:31,850
surprised about the cryptocurrency thing as I was about Silicon Valley bank and bank within

1788
02:39:31,850 --> 02:39:40,790
our own county, a bank that has supported the tech industry which sort of fuels our local

1789
02:39:40,790 --> 02:39:47,150
economy. And so what I'm hearing from constituents is they're very nervous about money

1790
02:39:47,150 --> 02:39:53,430
right now. And so maybe some of our comments and concerns might come across as being a

1791
02:39:53,430 --> 02:39:59,970
little aggressive. And if so, I apologize. But this is what we're here.

1792
02:40:02,690 --> 02:40:26,680
These are the concerns we're hearing and I feel an obligation as an elected official to relay that to staff, because we're that connection between the organization and the community, and I think all of us, I know all of us here on the board take that responsibility very seriously.

1793
02:40:26,680 --> 02:40:36,680
So my request of staff would be similar to what we've heard from the other board members so far is that we need

1794
02:40:37,720 --> 02:40:48,920
frequent check-ins on Pacheco in terms of the schedule, the environmental process and funding and potentially potential funding partners.

1795
02:40:48,920 --> 02:40:49,440
I think.

1796
02:40:53,360 --> 02:40:56,900
You didn't pop up there, Director Santos, but did you want to speak?

1797
02:40:59,100 --> 02:41:00,020
Thank you, Mr. Chair.

1798
02:41:01,080 --> 02:41:05,520
Most of the constituents that I talked to, is what they tell me.

1799
02:41:05,880 --> 02:41:06,840
We should be don't flood.

1800
02:41:07,800 --> 02:41:10,060
We should open that tap we get water.

1801
02:41:10,580 --> 02:41:13,120
Now and for the future, that's what this board is doing.

1802
02:41:13,660 --> 02:41:17,920
We're asked and elected to make sure we have a reliable source for the rest of our lives.

1803
02:41:18,280 --> 02:41:18,880
I got mine.

1804
02:41:19,180 --> 02:41:20,040
I've said it a hundred times.

1805
02:41:20,040 --> 02:41:25,040
want to make sure that grandkids and the people who let me get water and that's what I'm going to do. Thank you.

1806
02:41:26,600 --> 02:41:27,480
Correct, Mr. Mayor.

1807
02:41:30,010 --> 02:41:32,090
Thank you Mr. Chairman. I certainly agree.

1808
02:41:32,190 --> 02:41:37,470
You know, there's no question what everybody concerned about cost.

1809
02:41:37,890 --> 02:41:39,290
That's what money means.

1810
02:41:40,030 --> 02:41:43,590
It's a short supply and we've got to make sure that we use it correctly.

1811
02:41:44,870 --> 02:41:48,690
But every time that I look at cost, I look at value.

1812
02:41:48,690 --> 02:41:54,030
And it's really important when you look at what's something cost that you ask yourself,

1813
02:41:54,330 --> 02:41:56,990
what is it cost if you don't do it?

1814
02:41:57,650 --> 02:42:01,810
That's what we've got to add to all these estimates that we have.

1815
02:42:02,450 --> 02:42:03,690
2 billion, 8 billion, 50.

1816
02:42:04,530 --> 02:42:07,690
What is it going to cost if we don't do it?

1817
02:42:08,910 --> 02:42:17,710
We represent, we represent 1.8 million people and served 2 million data bases.

1818
02:42:17,710 --> 02:42:34,210
We house the largest corporations on the face of this planet, and people live here because of the sunshine of the comfort and the fact that they can get water when they turn the spirit on.

1819
02:42:34,370 --> 02:42:42,610
And if they don't get water when they do that, they'll all be gone. Taxes, I don't know, Austin, whatever, so we do have a responsibility.

1820
02:42:43,150 --> 02:42:49,370
We got responsibility to deliver. That means water supply and protection of flooding.

1821
02:42:50,090 --> 02:42:56,210
That's what we got to do. So when we look at our budgets, we also got to look at the other side of it.

1822
02:42:56,550 --> 02:43:02,870
What's it going to cost if we don't do this? What's it going to cost if we don't build for Chaco?

1823
02:43:02,970 --> 02:43:06,890
What's it going to cost if we don't do a lot of these projects that we're talking about?

1824
02:43:07,470 --> 02:43:11,250
That's what we need to look at, along with what it costs.

1825
02:43:11,410 --> 02:43:14,690
We're all concerned about costs, and I represent some of the poorest people in town.

1826
02:43:15,190 --> 02:43:25,150
So yeah, I care about costs, but also care about them being able to live in a place where we provide services and safety so they can live here as well as work here.

1827
02:43:25,810 --> 02:43:29,150
So that's the way we got to look at this, both sides of the coin.

1828
02:43:29,730 --> 02:43:33,950
So I appreciate staff doing the best that you can with estimates.

1829
02:43:33,950 --> 02:43:39,870
You know, as I mentioned before, something costs so much today, tomorrow will be different.

1830
02:43:40,070 --> 02:43:43,690
I guarantee you next week and next month it will be different, it could be more could be less.

1831
02:43:43,910 --> 02:43:45,630
We never know and to get there.

1832
02:43:45,970 --> 02:43:49,990
So I appreciate the exercises that you continue to conduct.

1833
02:43:50,650 --> 02:43:52,830
And I appreciate if we do this a little bit more often.

1834
02:43:53,710 --> 02:43:55,490
But I think we're on the right track here.

1835
02:43:56,350 --> 02:43:56,970
Thank you, Chairman.

1836
02:43:57,510 --> 02:43:58,210
Thank you.

1837
02:43:59,250 --> 02:44:00,190
Do you do a pleasure work?

1838
02:44:01,370 --> 02:44:07,710
I strongly agree with my colleague, Director Estromera's question, and in fact that was what

1839
02:44:07,710 --> 02:44:10,690
I really, really asked for in for this meeting.

1840
02:44:11,130 --> 02:44:18,990
I said, can you please compare the cost of Pacheco with the cost of alternatives?

1841
02:44:19,760 --> 02:44:27,450
And we were not presented that, but I was able to locate some somewhat out of date resources,

1842
02:44:27,450 --> 02:44:35,230
which say that the cost of increasing our water storage in those

1843
02:44:35,230 --> 02:44:44,910
fakeeros would be equal to $400 an acre foot. The cost of holding more water

1844
02:44:44,910 --> 02:44:57,110
in sites reservoir is would be $800 an acre foot and the cost of water in

1845
02:44:57,110 --> 02:44:59,970
the Chaco assuming the 30-

1846
02:45:00,000 --> 02:45:10,420
5% buy-in is approximately $2700 an acre foot, which makes it pushes it over $5,000 an acre foot,

1847
02:45:10,860 --> 02:45:18,320
which renders it more than 10 times the cost of having more water in most of the caros, which

1848
02:45:18,320 --> 02:45:19,460
is pretty far along,

1849
02:45:21,820 --> 02:45:24,500
and the environmental community is totally fine with, by the way.

1850
02:45:24,500 --> 02:45:30,960
And also sites, it would be more than five times as expensive.

1851
02:45:32,000 --> 02:45:41,940
So again, you don't have to be against dams and reservoirs to conclude that this project is too expensive.

1852
02:45:42,880 --> 02:45:44,620
There are other options.

1853
02:45:45,740 --> 02:45:51,260
Much less expensive options, and I would have asked that they be presented here.

1854
02:45:51,260 --> 02:45:56,120
Under that same analysis, by the way, and again, I wish this would have been up in front of us,

1855
02:45:56,860 --> 02:46:02,220
is that ground water recharge costs $400 to $1,300 in acre foot,

1856
02:46:03,780 --> 02:46:11,040
potable reuse at $4,000, $2,500 as to where foot, $2,000 for injection wells,

1857
02:46:11,940 --> 02:46:19,320
$1,700 for those godos. I mean, there are so many different alternatives, and all of them cost less,

1858
02:46:20,060 --> 02:46:26,700
all of them. So, you know, again, you can agree with everything that you all are saying about

1859
02:46:26,700 --> 02:46:32,760
how much you like dance in reservoirs and just find that this is too expensive and given

1860
02:46:32,760 --> 02:46:39,300
that this is, and it is too expensive even if others participate, which is why they're not going

1861
02:46:39,300 --> 02:46:47,340
to participate. The other thing I really just wanted to say to is now, if I understand correctly,

1862
02:46:47,340 --> 02:46:50,600
And I know you all are pretty good at cracking me when I'm wrong.

1863
02:46:52,080 --> 02:46:57,760
Is that all the positive benefits that is quoted like for wildlife and this and that?

1864
02:46:58,460 --> 02:47:02,160
All of those rely on the mitigations.

1865
02:47:03,520 --> 02:47:11,640
So there's no just to be clear, there's no benefit whatsoever to wildlife in a lot of harm to wildlife without those mitigations.

1866
02:47:12,420 --> 02:47:16,800
But those mitigations haven't been the cost of those mitigations haven't been at all.

1867
02:47:16,800 --> 02:47:21,800
factored into this yet from what I've been told, is that wrong?

1868
02:47:24,160 --> 02:47:26,960
I'm going to, at least my caution answer that question.

1869
02:47:27,980 --> 02:47:28,400
I'm sorry.

1870
02:47:30,740 --> 02:47:37,200
So the, you know, the positive like wildlife benefits that have been quoted by my colleagues,

1871
02:47:37,960 --> 02:47:45,400
my reading of the materials, all of them, is that those rely on the mitigations.

1872
02:47:45,740 --> 02:47:46,460
Am I wrong?

1873
02:47:47,480 --> 02:47:51,700
So Lisa Vankosch, Assistant Officer, Watershed Stewardship and Planning Division.

1874
02:47:52,660 --> 02:47:57,720
So there are positive benefits for steelhead that are associated with this project.

1875
02:47:58,800 --> 02:48:01,180
I'm sorry, with or without mitigations.

1876
02:48:02,080 --> 02:48:06,520
That is actually part of the project that is a project objective to provide an improved habitat

1877
02:48:06,520 --> 02:48:08,180
for steelhead within Pichigel Creek.

1878
02:48:08,400 --> 02:48:10,660
So that isn't included in the mitigations.

1879
02:48:11,240 --> 02:48:13,520
That's cost is built in to the project.

1880
02:48:13,720 --> 02:48:14,080
That's correct.

1881
02:48:14,080 --> 02:48:16,420
I didn't see that line item.

1882
02:48:20,780 --> 02:48:26,100
I don't believe the budget provides specific line items for steel head benefit.

1883
02:48:27,940 --> 02:48:33,540
So, do you have any estimate of what the mitigations would cost on top of what stated?

1884
02:48:35,080 --> 02:48:42,820
So, the mitigations and I'll just state that since 2019 I've been assisting the project and advanced mitigation planning.

1885
02:48:42,820 --> 02:48:56,000
And so we have done significant work to identify mitigation in order to confirm that mitigation is both realistic and achievable.

1886
02:48:56,760 --> 02:49:06,760
However, we're not able to put on a price tag on that right now, and the reason why is because there's actually quite a few different pathways to achieving mitigation,

1887
02:49:06,760 --> 02:49:12,820
as well as we need to negotiate with the regulators until we actually know what the

1888
02:49:13,740 --> 02:49:19,100
race mitigation ratios will be. So none of the work on the mitigation is actually

1889
02:49:19,100 --> 02:49:25,320
really started. There has been quite a significant amount of work and advanced planning

1890
02:49:25,320 --> 02:49:35,560
to identify potential future mitigation. Absolutely. So in the EPA loan documents, they, I,

1891
02:49:35,560 --> 02:49:40,720
You know, was there a line item for the total cost including mitigations?

1892
02:49:41,100 --> 02:49:44,100
Do you know about that or, you know, I, I, I'll let that question go.

1893
02:49:44,160 --> 02:49:46,280
So I have a more important question actually.

1894
02:49:46,700 --> 02:49:50,460
So when we look at the, this might not be for you and I appreciate your answers.

1895
02:49:50,800 --> 02:49:51,540
Thank you.

1896
02:49:52,400 --> 02:49:58,820
When we look at the price of alternatives, we often see certain costs filled in such as the cost of acquiring water.

1897
02:49:59,680 --> 02:49:59,980
And the cost.

1898
02:50:01,520 --> 02:50:13,440
So we see that a lot when we're looking at cost of recycling, a line item in the cost of recycling is the cost of acquiring the wastewater. I've heard that a lot. But we don't have the wastewater, we don't have the wastewater, we don't have to get the wastewater.

1899
02:50:15,760 --> 02:50:23,340
So how much will have we calculated yet the ongoing costs of buying the water will need to buy to fill this reservoir?

1900
02:50:26,680 --> 02:50:32,420
I believe I will throw that question to Chief Operating Officer Baker as to how our state

1901
02:50:32,420 --> 02:50:35,940
water and such a value project to plot our contracts work.

1902
02:50:36,380 --> 02:50:39,660
Right, and Air Maker Chief Operating Officer, what do you tell you in your price?

1903
02:50:40,220 --> 02:50:44,500
A good portion of the annual course in the actual operations plans and all those other things

1904
02:50:44,500 --> 02:50:49,620
are still subject to refinement as we continue on down the line here, but a good portion

1905
02:50:49,620 --> 02:50:55,480
of what we're looking at for this particular reservoir would be to take water from our existing

1906
02:50:55,480 --> 02:51:03,160
contracts or what they call surplus flows like Article 21 or Article 21 or Section 2115 water

1907
02:51:03,160 --> 02:51:08,500
which would be excess water and then storing it and when there's wet excess times and storing it

1908
02:51:08,500 --> 02:51:16,200
in this reservoir for use during dryer times. The cost of these surplus flows waters or water

1909
02:51:16,200 --> 02:51:24,780
that we had in very good or higher allocation years is generally relatively inexpensive, especially on

1910
02:51:24,780 --> 02:51:29,960
particular project there could be some fees to move the water around, but a good portion of

1911
02:51:29,960 --> 02:51:38,200
what they're expecting would be is to use excess flows or unused water that we have in

1912
02:51:38,200 --> 02:51:43,220
our existing allocations moving forward. We're not necessarily looking at acquiring additional

1913
02:51:43,220 --> 02:51:48,540
water rights or other types of water for this particular reservoir. Thank you. So here's my question

1914
02:51:48,540 --> 02:51:54,420
then my final question about this. I really appreciate that helpful answer. Thank you. So

1915
02:51:54,780 --> 02:51:58,880
Sounds like we're using water that pretty much we have to fill that.

1916
02:51:59,180 --> 02:52:03,300
So exactly how much new water will this project bring us?

1917
02:52:03,560 --> 02:52:06,000
How much new water?

1918
02:52:06,640 --> 02:52:13,660
How much will increase our water supply as to pose to say maybe water recycling?

1919
02:52:15,980 --> 02:52:18,560
I will throw that question to Ryan McCartor.

1920
02:52:21,340 --> 02:52:26,120
Thank you, Chris, so that's a really hard answer to give in an exact way,

1921
02:52:26,120 --> 02:52:31,340
Because we're rocking it. Annual averages. I think are we models that we've done

1922
02:52:31,340 --> 02:52:40,060
we're averaging about 6,000 acre feet per year. But that average comes with that could be 80,000 acre feet in one year and it could be zero and another.

1923
02:52:40,460 --> 02:52:47,260
So it all depends on what's happening in the weather, which we cannot predict, and how much water we can store in wet years and use in dry years.

1924
02:52:47,780 --> 02:52:52,240
But that comes whether or not we have the check-up, right? So what's the addition?

1925
02:52:52,240 --> 02:52:58,440
There's no where there's no there's no sorry to interrupt. There's no where to put that additional water is chief Baker was explaining in those wet years

1926
02:52:59,120 --> 02:53:07,340
Well how about when Anderson's done still there there this is we're looking at this is an additional storage to Anderson in the wheat model

1927
02:53:07,340 --> 02:53:13,860
But so you think about what did you say 6,000 acre feet? I believe that's the latest average annual yield that was calculated

1928
02:53:13,860 --> 02:53:17,000
So I read that Orange County is

1929
02:53:17,000 --> 02:53:20,820
Water recycling something like well more than 6,000 acre feet

1930
02:53:20,820 --> 02:53:23,400
Director Eisenberg, that is not relevant to our discussion.

1931
02:53:23,980 --> 02:53:25,320
What is happening in Orange County?

1932
02:53:25,600 --> 02:53:26,680
Could you please summarize your colleagues?

1933
02:53:26,680 --> 02:53:31,600
Okay, so again, I think I take very seriously what director Esfameras that.

1934
02:53:32,620 --> 02:53:39,320
And so, but how can we decide if this is the best project without comparing it to alternatives?

1935
02:53:39,940 --> 02:53:41,060
To have to continue discussion.

1936
02:53:41,700 --> 02:53:47,980
Again, every question that I ask, the answers there are better options, and I'm just, again,

1937
02:53:47,980 --> 02:53:54,680
It's no, maybe this was great and a much lower cost, but I'm confused.

1938
02:53:55,320 --> 02:53:56,180
Thank you.

1939
02:53:56,380 --> 02:53:59,520
We have finished with our report.

1940
02:53:59,740 --> 02:54:00,200
Thank you.

1941
02:54:00,320 --> 02:54:03,580
We have a few people in the public that are waiting to speak.

1942
02:54:04,520 --> 02:54:06,140
And we have some people online.

1943
02:54:07,920 --> 02:54:10,320
Let's talk to the people online first.

1944
02:54:11,300 --> 02:54:12,540
Thank you, Mr. Chair.

1945
02:54:13,400 --> 02:54:15,060
We've got more hands being raised now.

1946
02:54:15,380 --> 02:54:16,840
We will start with the first hand.

1947
02:54:16,840 --> 02:54:22,120
name I see on the screen a branch mid. Good afternoon Mr. Schmidt.

1948
02:54:26,170 --> 02:54:27,130
Good afternoon. Good afternoon.

1949
02:54:27,270 --> 02:54:31,470
Chair for all. Hello, good evening, please. Here's the only one that you have.

1950
02:54:31,890 --> 02:54:37,630
And it's good to see you. The new directors, the longstanding directors and of course the Valley

1951
02:54:37,630 --> 02:54:43,890
Wants staff, great to see all of you. I do not criticize the original decision to research and

1952
02:54:43,890 --> 02:54:50,110
consider the ChicoDant project. But it's simply past time to stop spending good money after bad.

1953
02:54:51,030 --> 02:54:56,030
A lot of this project is not going to happen, but if it's somehow did, it wouldn't be bad for the county,

1954
02:54:56,210 --> 02:54:59,970
not economically and environmentally. And it brought up better options for one.

1955
02:55:01,440 --> 02:55:08,720
It's a telling that those precarious has many willing payer, it hurts, while we can't find more than token participation for a cheater.

1956
02:55:09,660 --> 02:55:15,500
A point out that there are 60,000 people at all 70 account. They simply can't afford massive costs.

1957
02:55:16,820 --> 02:55:23,060
The now-javoc likes to make this a carry value in all 1,000 dollars per stack time and elected officials' time.

1958
02:55:23,060 --> 02:55:28,180
And for that matter, Valley Walkers time that was lost on a planning for it increasingly unlikely

1959
02:55:28,180 --> 02:55:34,040
development option for Cadi Valley for something that I never had. Your staff's time is

1960
02:55:34,040 --> 02:55:38,320
valuable, have them work on something that is worthwhile and reasonably likely to have.

1961
02:55:39,400 --> 02:55:43,840
The direction that the board should provide to staff is to declare that because of the board's

1962
02:55:43,840 --> 02:55:49,180
interest in terminating this project, that staff should return to the board at the earliest possible

1963
02:55:49,180 --> 02:55:54,020
with an action item, for recommendations on the best process of determining the

1964
02:55:54,020 --> 02:55:58,920
shape of data project, including returning on-spank grant funds, or requesting

1965
02:55:58,920 --> 02:56:02,860
repurposing the remaining funding to other means for ensuring water supply

1966
02:56:02,860 --> 02:56:07,760
resilience for Santa Clara County. Finally, I'll add that staff appeared to

1967
02:56:07,760 --> 02:56:12,280
suggest today that the district might need to repay the state for funds if the

1968
02:56:12,280 --> 02:56:16,100
district determines this project, which at only one certainly will have to bear

1969
02:56:16,100 --> 02:56:22,720
That's all the more reason, not to spend more money now, but to stop the project as soon as possible.

1970
02:56:23,320 --> 02:56:23,520
Thank you.

1971
02:56:24,720 --> 02:56:25,400
Thank you, Brian.

1972
02:56:25,580 --> 02:56:26,580
Good to hear from you.

1973
02:56:26,660 --> 02:56:27,460
So do we have another speaker?

1974
02:56:29,480 --> 02:56:29,920
Yes.

1975
02:56:30,200 --> 02:56:31,840
Mr. Chair, we have several other.

1976
02:56:31,920 --> 02:56:32,060
Good.

1977
02:56:32,520 --> 02:56:34,380
We'll take the next name that I see.

1978
02:56:34,600 --> 02:56:37,200
It looks like it's Lori Eliamo.

1979
02:56:38,240 --> 02:56:38,680
Lori?

1980
02:56:41,420 --> 02:56:41,860
Eliamo?

1981
02:56:46,020 --> 02:56:46,960
Yes, we can.

1982
02:56:47,960 --> 02:56:48,380
Okay.

1983
02:56:48,380 --> 02:56:51,780
thinking for a given as this opportunity to speak.

1984
02:56:53,900 --> 02:56:57,740
I'm not a professional person. I am a basic

1985
02:56:57,740 --> 02:57:03,780
rate payer and I'd like to know what percentage of all these studies will be passed on to

1986
02:57:03,780 --> 02:57:16,220
over the rate fares. Our water, power, garbage, food, and gas, as well as rent prices, go up every

1987
02:57:16,220 --> 02:57:21,260
years for us, wages are not equal in those raises.

1988
02:57:23,480 --> 02:57:28,620
The rate here is cannot afford even a $13 increase right now.

1989
02:57:29,140 --> 02:57:34,760
We're suffering here, especially for a project that may or may not go forward.

1990
02:57:35,800 --> 02:57:42,660
If rate here is will be forced to pay for these studies, I would expect transparency

1991
02:57:42,660 --> 02:57:56,020
such as information that sent out the USPS to each and every rate payer to clearly explain what they are being charged for.

1992
02:57:56,740 --> 02:58:12,300
As a rate payer, I would rather see money spent on conservation, recycling, expansion of flood control, and I would like to see comparisons on alternatives to the Chaco.

1993
02:58:15,060 --> 02:58:15,980
Thank you.

1994
02:58:16,100 --> 02:58:16,660
Thank you.

1995
02:58:18,200 --> 02:58:18,760
This is Aliyama.

1996
02:58:19,480 --> 02:58:19,500
Okay.

1997
02:58:19,820 --> 02:58:20,280
Who else do we have?

1998
02:58:20,400 --> 02:58:21,200
Our next step.

1999
02:58:21,980 --> 02:58:22,900
Beth Fisher.

2000
02:58:26,310 --> 02:58:26,490
Hello.

2001
02:58:26,690 --> 02:58:27,630
We are a good afternoon.

2002
02:58:28,110 --> 02:58:31,390
Chair for a lot of members of the Valley Water Board.

2003
02:58:32,110 --> 02:58:36,410
I'm speaking on behalf of our faculty of faculty and faculty and the stand and

2004
02:58:36,410 --> 02:58:40,150
in San Bernard County's Govian and Construction Trade Council.

2005
02:58:40,490 --> 02:58:44,210
We were, for example, 24 affiliates and over 35,000 members.

2006
02:58:45,190 --> 02:58:49,490
And I'm here to express our strong support for the Chaco Reservoir Expansion Project

2007
02:58:49,490 --> 02:58:51,150
and its speaks of energy.

2008
02:58:51,990 --> 02:58:58,150
This project was delivered much needed water storage via 140,000 acre foot facility for the region.

2009
02:58:58,690 --> 02:59:00,470
Water is life water is vital.

2010
02:59:00,870 --> 02:59:04,990
And the infrastructure that preserves its abundant quantity in quality is essential

2011
02:59:04,990 --> 02:59:09,950
for both the health and after going back by time for the Santa Clara Valley and beyond.

2012
02:59:10,970 --> 02:59:14,770
In 2020, when we went into disappearance, you know how strongly impacted the water supply

2013
02:59:14,770 --> 02:59:19,210
for soil and confiliates. And although the situation has changed due to the machinery of rains,

2014
02:59:19,750 --> 02:59:23,610
we could find ourselves in the same situation again without actual water storage.

2015
02:59:24,330 --> 02:59:29,070
The Pacheco reservoir will be a place to store a water that rains as much as what we just experience.

2016
02:59:29,790 --> 02:59:33,690
And we can consider that if the Pacheco Dammer in place last week,

2017
02:59:33,690 --> 02:59:36,970
A portion of the peak flows might have been cut out of the power of the mirror.

2018
02:59:37,230 --> 02:59:40,770
This could have lessen the impact on the vulnerable living that feels and slightly

2019
02:59:40,770 --> 02:59:42,770
the community impacting homeowners.

2020
02:59:44,650 --> 02:59:49,230
Also, the Pacheco project would not only per 1,000 of well-paid construction jobs for

2021
02:59:49,230 --> 02:59:52,570
members, but it would also establish a new high-floating habitat for the friends,

2022
02:59:52,590 --> 02:59:55,710
staff, central coasts, still a child on the Pacheco Creek.

2023
02:59:56,390 --> 02:59:58,650
So you're carrying water supply for residents and the environment,

2024
02:59:58,650 --> 02:59:59,970
and they're careful when you go to sleep.

2025
03:00:00,000 --> 03:00:08,900
Boarding with Proposition 1 and 2014. The Michigan budget has been ordered with five hundred million dollars in funding, and this is an opportunity we cannot turn our box on.

2026
03:00:09,300 --> 03:00:20,780
We urge the Board to continue its work in setting the feasibility of this proposed critical project with all the environment of benefits, economic benefits, water supply, and water storage benefits. Thank you so much.

2027
03:00:20,780 --> 03:00:22,120
I'm going to go ahead and make it.

2028
03:00:22,360 --> 03:00:22,940
Thank you.

2029
03:00:22,980 --> 03:00:24,440
I appreciate your time.

2030
03:00:25,100 --> 03:00:25,800
I'll just be curious.

2031
03:00:26,480 --> 03:00:28,840
Next name, Lawrence Abbott.

2032
03:00:30,480 --> 03:00:31,060
Mr. Abbott.

2033
03:00:32,740 --> 03:00:33,280
Thank you.

2034
03:00:33,440 --> 03:00:33,660
Yeah.

2035
03:00:33,660 --> 03:00:36,720
I'm going to be tired while I buy all just from a humble state university.

2036
03:00:37,500 --> 03:00:40,280
I just wanted to say that you can write pretty words.

2037
03:00:41,360 --> 03:00:41,740
But, damn.

2038
03:00:41,860 --> 03:00:44,500
So, I've never benefited a natural and a space species.

2039
03:00:44,580 --> 03:00:46,080
Such as this geolette trap.

2040
03:00:46,620 --> 03:00:49,280
You can't eliminate their habitat, take the creak away.

2041
03:00:49,280 --> 03:00:54,020
put a reservoir of it down and say you're helping those fish that need to live in that

2042
03:00:54,020 --> 03:01:01,880
creek that makes no sense at all. And the other two points I want to make are that you

2043
03:01:01,880 --> 03:01:07,240
made a huge, a couple of two huge mistakes when the previous board has started this project.

2044
03:01:07,380 --> 03:01:12,180
One is that when you made your agreements with other agencies and you said you wouldn't do

2045
03:01:12,180 --> 03:01:17,120
this thing out, fiscally without getting agreements from other agencies, you didn't get a contract,

2046
03:01:17,120 --> 03:01:21,400
the side contract. You got an agreement of understanding, which is ridiculous. That's like

2047
03:01:21,400 --> 03:01:25,800
saying, okay, I want to be a remodeled to my house, but I'm going to work with the contract

2048
03:01:25,800 --> 03:01:30,740
and I'm not going to sign your contract. I'm going to give you an agreement that I'll pay you,

2049
03:01:30,760 --> 03:01:33,980
you know, if you do a really good job. That's, that's, that's, that's, that's, absolutely,

2050
03:01:33,980 --> 03:01:38,440
responsible as some of the board members have been saying that that's absolutely ridiculous and

2051
03:01:38,440 --> 03:01:43,280
it lets you work off false numbers. And thirdly, at the very beginning, you shouldn't have reached

2052
03:01:43,280 --> 03:01:50,580
out to groups such as the major conservancy and the Sierra to a, and you should have had lots of meetings before he spent all his money on these studies.

2053
03:01:51,080 --> 03:01:58,540
Because they would have told you how to environmentally sensitive that area is that it's a desert light and becoming more desert light with global warming.

2054
03:01:58,760 --> 03:02:00,680
So a risk place in rural putter reservoir.

2055
03:02:01,320 --> 03:02:04,280
Because of all the threatened and endangered species that live there.

2056
03:02:05,000 --> 03:02:10,800
And because while we're evaporating so quickly there you don't have a lot of snowmelt that runs into a reservoir for all the reasons.

2057
03:02:10,800 --> 03:02:18,100
You should have been doing all your own due diligence before you spent all this public taxpayer money on these expensive

2058
03:02:19,120 --> 03:02:24,440
Surveys you could have found out much of that information a head of time and not needed to do this

2059
03:02:24,440 --> 03:02:30,360
And you know stop the project and it's early as stages before any money was spent on it

2060
03:02:30,360 --> 03:02:36,100
So just shame on the previous board and I hope you guys come to your senses and stop this project now

2061
03:02:36,100 --> 03:02:38,860
where you fill up more and more fees.

2062
03:02:39,260 --> 03:02:41,520
And then discover the environmental impact report

2063
03:02:41,520 --> 03:02:43,300
that is ridiculous to start with.

2064
03:02:43,440 --> 03:02:44,120
Thank you, pass.

2065
03:02:45,060 --> 03:02:45,900
Thank you, Mr. Abbott.

2066
03:02:46,600 --> 03:02:47,120
Are the speaker?

2067
03:02:48,100 --> 03:02:51,040
Our next speaker, Erica Vowen-Tine.

2068
03:02:51,900 --> 03:02:52,740
Good, Ms. Velletine.

2069
03:02:55,930 --> 03:02:57,510
Hello, thank you for your time to speak with me all

2070
03:02:57,510 --> 03:02:57,990
me today.

2071
03:02:58,450 --> 03:03:01,310
I am Erica Vowen-Tine, a U.A. local 3903.

2072
03:03:01,310 --> 03:03:03,470
We represent 3100 cars, pipe,

2073
03:03:03,490 --> 03:03:04,990
food, or steam, colors, and HVCR,

2074
03:03:05,050 --> 03:03:07,570
technicians of Santa Clara and San Diego County.

2075
03:03:07,570 --> 03:03:09,930
I'm here today in support of how I'm in the SAMHSA.

2076
03:03:10,550 --> 03:03:15,050
I ask that all of you will get to continue with this project as well as proceed with your

2077
03:03:15,050 --> 03:03:16,650
cost analysis as you have outlined.

2078
03:03:17,210 --> 03:03:21,530
This project offers us a ability to provide water for our children for such a drought as we have

2079
03:03:21,530 --> 03:03:23,570
faced for many years in the past.

2080
03:03:24,010 --> 03:03:27,790
This project allows us a ability to find mentioning the jobs for skilled and trained workers

2081
03:03:27,790 --> 03:03:30,690
in our area that will stimulate economic growth.

2082
03:03:30,870 --> 03:03:36,650
This project will help us avoid catastrophic emergencies and we face this year with much needed

2083
03:03:36,650 --> 03:03:37,010
Thanks.

2084
03:03:37,370 --> 03:03:40,930
Third probably asking you please support the Bitech Public Health Project to move forward

2085
03:03:40,930 --> 03:03:41,770
to your vote.

2086
03:03:42,030 --> 03:03:42,650
Thank you.

2087
03:03:43,530 --> 03:03:44,230
Thank you Ms. Valentine.

2088
03:03:45,490 --> 03:03:47,710
Our next speaker is Rainie Fisher.

2089
03:03:50,320 --> 03:03:50,900
Rainie Fisher?

2090
03:03:56,400 --> 03:03:57,140
Here we go.

2091
03:03:59,070 --> 03:04:00,170
Good afternoon, Board.

2092
03:04:01,070 --> 03:04:03,670
I speak as a resident of Sonnabail.

2093
03:04:04,330 --> 03:04:11,070
The Pachayman Dam is very little benefit in the way of water supply and a lot in the way

2094
03:04:11,070 --> 03:04:18,670
devastating environment will impact. The DER states that it would cause 13 significant

2095
03:04:18,670 --> 03:04:25,930
and unoboidable impacts. For 1,200 acres of that land that will be flooded, there is no

2096
03:04:25,930 --> 03:04:32,750
feasible mitigation measures available to offset the flooding under Williamson Act contracts.

2097
03:04:33,690 --> 03:04:38,650
Hepatop could be destroyed, including one of the few remaining California's

2098
03:04:38,650 --> 03:04:46,530
more grows in the state, and the flooding of 1500 acres includes old grows oaks, the

2099
03:04:46,530 --> 03:04:53,070
valley of which hosts more native insects species than any other plant. Instead of building

2100
03:04:53,070 --> 03:04:59,510
more dams, valley waters should be looking at sustainable water projects, like water recycling

2101
03:05:00,000 --> 03:05:12,480
The warm water capture, treatment, and groundwater recharge. In addition, the project is expected to lose as much as 4900 a.m., per year, just due to vacuum evaporation.

2102
03:05:14,060 --> 03:05:29,080
Falling water is already admitted that the DEI are circulated in 2022 as inadequate and must be redone, and that the federal and environmental review process under the National Environmental Policy Act is not even begun.

2103
03:05:29,080 --> 03:05:40,380
Please stop this project. Furthermore, I agree with Director Eisenberg, that staff should have a professional opinion on this project.

2104
03:05:40,980 --> 03:05:47,080
Otherwise, there's simply regurgitating statistics. Thank you.

2105
03:05:48,200 --> 03:05:48,820
Thank you, Ms. Fisher.

2106
03:05:49,820 --> 03:05:51,820
Our next speaker is James Crowder.

2107
03:05:53,620 --> 03:05:54,280
Ms. Crowder?

2108
03:05:58,790 --> 03:06:07,690
working on here. Yeah, we can hear. Good afternoon, Chair. Board members, thank you for the opportunity to speak today.

2109
03:06:07,850 --> 03:06:13,930
My name is James Crowder. I'm the attorney, it's Lord and Sir. We represent a top of the shape of the handful listen.

2110
03:06:14,610 --> 03:06:20,730
We submitted a written comment to the Board yesterday that describes some of the ongoing financial problems.

2111
03:06:20,730 --> 03:06:27,330
project is gone through, many of which I've heard about the day, didn't want to point

2112
03:06:27,330 --> 03:06:32,250
out as direct and key in when in a very detailed earlier regard in partnerships with

2113
03:06:32,250 --> 03:06:36,910
the partnership situation is always been a real issue to this project. And it's held

2114
03:06:36,910 --> 03:06:41,470
the day the public has been unaware that there's essentially no partnerships.

2115
03:06:43,770 --> 03:06:43,850
And

2116
03:06:43,850 --> 03:06:49,670
but up until this point cost estimates, it's always included as well as direct

2117
03:06:49,670 --> 03:06:55,950
The rest of America pointed out that the original purpose of the 35% assumption was based

2118
03:06:55,950 --> 03:07:02,570
on the idea that the board would not move forward with the project without 35% buying from

2119
03:07:02,570 --> 03:07:03,710
the X-Tara farmers.

2120
03:07:04,590 --> 03:07:07,570
But in five years, there's still no purpose.

2121
03:07:09,050 --> 03:07:15,830
This seems like a good time for the board to abandon the project, especially now that the real

2122
03:07:15,830 --> 03:07:21,610
cost of the project, which is now about $6 billion, has been publicly available.

2123
03:07:22,430 --> 03:07:28,330
So, to be clear here, the amount of water is considering paying $6 billion for a project

2124
03:07:28,330 --> 03:07:31,770
that would add 6,000 acre feet a year to it's supply.

2125
03:07:32,650 --> 03:07:38,370
The reservoir is going to lose near the amount to evaporation of the loan, and you could

2126
03:07:38,370 --> 03:07:44,510
probably buy everyone the same as a rain bear when we collect about 6,000 acre feet.

2127
03:07:44,510 --> 03:07:55,490
Another thing I've said during the presentation was that this project is different from the other reservoir projects because the valley of water would control this project.

2128
03:07:56,110 --> 03:08:05,810
However, something that hasn't been discussed through many of the meetings that I've been to is that valley water doesn't own the land that it intends to flood.

2129
03:08:06,410 --> 03:08:11,550
So, not only water still needs to go through the process of purchasing and likely go through

2130
03:08:11,550 --> 03:08:19,090
imminent domain prior to construction and we have not seen that in any time run that has been

2131
03:08:19,090 --> 03:08:24,170
presented to the board or what that might cause and we think that that should be added into the

2132
03:08:24,170 --> 03:08:29,010
information that is provided to the board of public meetings and the future.

2133
03:08:30,320 --> 03:08:37,760
Also, as briefly discussed earlier, the latter mission meeting yesterday, they went through

2134
03:08:37,760 --> 03:08:43,620
all a project that they found a proper one fund, and if Chaco is now the last to be funded,

2135
03:08:44,260 --> 03:08:50,040
which is, you know, slated now for the end of the 2027, and during this discussion, the

2136
03:08:50,040 --> 03:08:56,080
lot of commission stated that it's beginning to consider whether or not all initially chosen

2137
03:08:56,080 --> 03:09:01,660
project should continue to be considered for funding. And it was determined here I had

2138
03:09:01,660 --> 03:09:06,840
meeting that the commission could receive funding for one project and reallocate it

2139
03:09:06,840 --> 03:09:12,160
to other problem projects. The commission noted that it is concerned often in ways and

2140
03:09:12,160 --> 03:09:19,240
barriers to completion, not just of Chaco, but just in general. But we know that Chaco is

2141
03:09:19,240 --> 03:09:23,920
riddled with delay. Mr. Crowder, please summarize please. You'll be on your three minutes.

2142
03:09:23,920 --> 03:09:27,980
Last, I would like to say the rest of the board record cannot hold them to get the long-term

2143
03:09:27,980 --> 03:09:30,580
water supply or I hope we can get through the routes.

2144
03:09:31,320 --> 03:09:37,180
There are sustainable water projects that can be purchased through this six billion dollars

2145
03:09:37,180 --> 03:09:40,660
that would set up a value of water for long-term loans.

2146
03:09:41,100 --> 03:09:41,920
Thank you for your message.

2147
03:09:42,160 --> 03:09:42,800
Appreciate your time.

2148
03:09:43,060 --> 03:09:43,860
Thank you.

2149
03:09:43,960 --> 03:09:44,380
Next speaker.

2150
03:09:44,680 --> 03:09:47,520
Our next speaker is Nancy Blastos.

2151
03:09:48,920 --> 03:09:49,180
Okay.

2152
03:09:50,280 --> 03:09:51,140
Is Blastos?

2153
03:09:54,310 --> 03:09:56,690
Good afternoon, can you hear me?

2154
03:09:57,010 --> 03:09:57,290
Yes.

2155
03:09:58,430 --> 03:09:58,650
Okay.

2156
03:09:58,790 --> 03:09:59,890
Good afternoon, board members.

2157
03:10:00,000 --> 03:10:15,440
I am opposed to this destructive project. It will enlarge in a fringe on the Henryk California State Park, O'Flaug, O'Trees, and succum, for us.

2158
03:10:28,440 --> 03:10:29,700
It will ruin

2159
03:10:29,700 --> 03:10:38,000
money and industrial project is considered. We should always consider what's going to happen

2160
03:10:38,000 --> 03:10:46,400
to the habitat. Flooding areas emit methane and we know that's terribly destructive to

2161
03:10:46,400 --> 03:10:56,800
human beings. I support this dorm or capture in purification, conservation and I want to say

2162
03:10:56,800 --> 03:11:08,760
And interlainers have say 20 to 30 percent more moral water than they originally were supposed to.

2163
03:11:09,160 --> 03:11:19,540
I think we can fix leaks and that will say 20 to 30 percent more water and punitive measures for people who do not conserve and don't reuse.

2164
03:11:19,540 --> 03:11:26,640
I like you have enjoyed this writing, but it's not going to be there in honest.

2165
03:11:27,200 --> 03:11:33,040
I think we need to secure existing supplies and infrastructure, fix infrastructure.

2166
03:11:33,720 --> 03:11:44,360
Before we embark on this hugely expensive project, water retailers, some water retailers do not support this.

2167
03:11:44,360 --> 03:11:52,800
And I would just bring up to you that it was last summer that the industrial farmers

2168
03:11:52,800 --> 03:12:00,540
during the Chester River and they were only fine $4,000 and they knew it was not what

2169
03:12:00,540 --> 03:12:02,120
they were supposed to do.

2170
03:12:02,660 --> 03:12:10,540
So we have to fight for the tax payers and the water rate payers because we are being squeezed

2171
03:12:10,540 --> 03:12:21,120
by any increases in gas, his tripled, and oil, and fuel, and we can't go on this way,

2172
03:12:21,480 --> 03:12:28,680
installing our environment. That's just as important in this water. Thank you.

2173
03:12:29,120 --> 03:12:30,120
Thank you, Ms. Blastos.

2174
03:12:30,900 --> 03:12:31,420
Excuse me.

2175
03:12:31,540 --> 03:12:33,460
The next speaker, I bring Austin.

2176
03:12:34,720 --> 03:12:35,560
Okay, Frank Austin.

2177
03:12:38,070 --> 03:12:45,550
Straussen? Yes, hello. Thank you all for the time to speak with you today. As was mentioned before,

2178
03:12:45,690 --> 03:12:52,670
my name is Frank Austin, and I'm also a business rep with you in total 33 as mentioned earlier by

2179
03:12:52,670 --> 03:12:59,430
Ms. Valentine. We represent over 3,100 plumbers, pipe-pidders, steam-fitters, and HBAC technicians

2180
03:12:59,430 --> 03:13:04,590
of Santa Clara and Santa New County. I'm here today to speak in support of this project.

2181
03:13:04,590 --> 03:13:12,370
As many of us know, the tracks are familiar to all of us that live here in California, in order to ensure that we have enough water.

2182
03:13:12,670 --> 03:13:17,030
We need to conserve the water when we have the opportunity to do so.

2183
03:13:17,730 --> 03:13:21,230
This recent rainfall is an example of that.

2184
03:13:21,510 --> 03:13:28,370
So much about water has gone down the storm drain, worked its way out to the bay, or has flooded local communities.

2185
03:13:29,390 --> 03:13:33,490
This project would also provide much needed jobs to members of our local community.

2186
03:13:33,490 --> 03:13:38,730
Please support the Chaco being a dean and project, and I thank you all for your time.

2187
03:13:39,290 --> 03:13:39,910
Thank you, Mr. Austin.

2188
03:13:42,910 --> 03:13:45,510
Our next speaker is Ronald Stork.

2189
03:13:47,470 --> 03:13:48,530
Mr. Stork.

2190
03:13:51,420 --> 03:13:52,040
Thank you, Chair.

2191
03:13:52,680 --> 03:13:53,880
Andrews and Board of Directors.

2192
03:13:54,180 --> 03:13:55,340
Planning is Ronald Stork.

2193
03:13:55,620 --> 03:13:58,960
Seeing you fall to be staffed with friends of the river.

2194
03:14:00,180 --> 03:14:03,680
This goes in form of the presentation by staff.

2195
03:14:03,680 --> 03:14:11,380
and informative and spirited conversation amongst the coordinators, and I'm glad I was able

2196
03:14:11,380 --> 03:14:13,480
to see that.

2197
03:14:15,040 --> 03:14:22,160
I wanted to mention briefly one issue that the Board of Mayor may not be aware of, and

2198
03:14:22,160 --> 03:14:31,460
that is the least about the further alternative going into this project.

2199
03:14:31,460 --> 03:14:40,140
the Resident War of Wood in a day part of the Henry Coast State Ark, and in our

2200
03:14:40,140 --> 03:14:46,900
judgment that is not something that the public resources code that governs state

2201
03:14:46,900 --> 03:14:57,000
parks permits. And therefore, at least that project iteration is legally

2202
03:14:57,000 --> 03:14:59,580
It is feasible. I know that so.

2203
03:15:00,000 --> 03:15:23,820
We have the staff, the suggesting that they may have some revised projects, designs, and may get that done early next year, and of course also have a supplemental or a new draft EIR.

2204
03:15:23,820 --> 03:15:32,460
And this project has a lot of issues, but this is one that is relatively easy to avoid.

2205
03:15:33,300 --> 03:15:44,600
And I would suggest that if this project was forward into additional design,

2206
03:15:44,600 --> 03:15:53,000
in additional environmental reviews. That's one issue that I think is easily corrected.

2207
03:15:53,800 --> 03:15:56,940
Thank you for the opportunity to speak to you today.

2208
03:15:57,220 --> 03:15:57,980
Thank you, Mr. Stork.

2209
03:15:59,860 --> 03:16:00,020
Next.

2210
03:16:00,320 --> 03:16:02,080
Our next speaker is Molly Colton.

2211
03:16:04,760 --> 03:16:05,360
Excuse me.

2212
03:16:07,160 --> 03:16:08,560
Good afternoon, Board members.

2213
03:16:09,020 --> 03:16:10,980
This is Molly Colton, the Sierra Club California.

2214
03:16:11,580 --> 03:16:14,500
There are a lot of issues with the Pacheco Resorts Genshin project.

2215
03:16:14,500 --> 03:16:17,020
but since I have limited time and there are a lot of speakers,

2216
03:16:17,780 --> 03:16:20,540
I'll just highlight some of our top concerns regarding this project.

2217
03:16:21,340 --> 03:16:24,780
One of the many problems with building new reservoirs in the state and age is that

2218
03:16:24,780 --> 03:16:29,700
all the good sites have already been taking and the refusification for the Pacheco expansion project

2219
03:16:29,700 --> 03:16:34,300
is no exception. When Battlewater was first considering this project 20 years ago,

2220
03:16:34,580 --> 03:16:39,120
the idea was dropped after geologists found rocking for the post project area with some stable.

2221
03:16:39,120 --> 03:16:46,840
It is dangerous and expensive to proceed with the project given this knowledge as outlined in the Water Supply Master Plan.

2222
03:16:47,380 --> 03:16:53,380
But I'm actually really surprised and concerned that this point hasn't been brought up in discussions today or talked about more generally.

2223
03:16:54,480 --> 03:16:57,980
Speaking of cost, the project only keeps getting more expensive every year.

2224
03:16:57,980 --> 03:17:02,740
renowned economist, Dr. Jeffrey Michael, at the University of the Civic Major School of Law,

2225
03:17:03,140 --> 03:17:08,500
didn't announce us on the right-care impacts of the Chaperdam project. You can find Dr. Michael's

2226
03:17:08,500 --> 03:17:12,720
board report at the Tashinar Sierra Club comment letter submitted to the board for today's meeting.

2227
03:17:13,600 --> 03:17:17,760
According to the analysis, Santa Clara County is in a cost of living crisis.

2228
03:17:18,440 --> 03:17:22,700
Twelve monthly bills for Santa Clara County residents are the highest in the United States.

2229
03:17:22,700 --> 03:17:29,480
Overall, cost of living in San Jose is estimated to be 215% above the U.S. average.

2230
03:17:30,220 --> 03:17:34,860
Tens of thousands of Santa Clara Valley households are delinquent on their water bills at current rates,

2231
03:17:35,080 --> 03:17:38,960
according to the state water resources control board, and San Jose water company.

2232
03:17:39,580 --> 03:17:44,720
The number of innovative bills is sure to grow higher if the valley water in poses rate increases for Pacheco Dam.

2233
03:17:45,240 --> 03:17:51,580
Against this backdrop, lowering the cost of living should be the primary focus of every public official in Santa Clara County.

2234
03:17:51,580 --> 03:17:58,020
Instead, value water is considering committing billions of repair dollars to adapt its own staff

2235
03:17:58,020 --> 03:18:02,480
to scrapes as one of the costliest and risky instructions in their own waters supply

2236
03:18:02,480 --> 03:18:03,340
master plan.

2237
03:18:04,080 --> 03:18:09,420
Director San Jose said during this meeting that this will be the best decision he's made

2238
03:18:09,420 --> 03:18:15,240
on this board to ensure water supply for future generations, but he fails to mention how future generations

2239
03:18:15,240 --> 03:18:19,540
will be saddled with this debt for a project that will not produce any new water.

2240
03:18:19,540 --> 03:18:28,920
This is extremely unfair to folks, including the majority of people in my generation who are already struggling to pay their utility bills and even put food on the table.

2241
03:18:29,420 --> 03:18:31,240
This project only made Maddie's worse.

2242
03:18:32,000 --> 03:18:44,200
Further, former San Jose Mayor Samuel Cardo opposed this project, saying that Jacob, Spanish and Project was too expensive, and this money would be better spent on other projects, such as water cycling, stormwater capture, and conservation.

2243
03:18:44,200 --> 03:18:50,420
Current San Jose Mayor, Matt Minham, is also skeptical of the projects, saying I have concerns

2244
03:18:50,420 --> 03:18:53,360
about whether there are several billions of dollars for a project like the Chaco,

2245
03:18:53,900 --> 03:18:57,940
which doesn't mean that we can play it in a lot of supply as a video of scarce resources

2246
03:18:58,520 --> 03:19:00,480
at a time when we have so many other needs.

2247
03:19:01,080 --> 03:19:05,700
Finally, Valley Water is struggling to find partners to share the cost of the project.

2248
03:19:06,000 --> 03:19:09,500
To date, no project partner agreements have been finalized.

2249
03:19:09,500 --> 03:19:14,540
Dr. Asterman is a said if we can't get those partners, then we can't do the check-up.

2250
03:19:15,040 --> 03:19:18,520
And I really hope we can hold him in the rest of the Valley Water to that statement.

2251
03:19:19,460 --> 03:19:28,300
And lastly, I agree with Dr. Bell's comments to the Valley Water could and should do more on groundwater storage and recharge projects as well as water recycling projects.

2252
03:19:28,840 --> 03:19:34,620
The Sierra Club encourages this wholeheartedly and would be happy to support Valley Water in this effort. Thank you.

2253
03:19:34,620 --> 03:19:36,720
Thank you Ms. Colton.

2254
03:19:37,820 --> 03:19:39,960
Next speaker is Casey Hedderley.

2255
03:19:41,080 --> 03:19:41,680
Is that her lead?

2256
03:19:45,670 --> 03:19:46,350
Good afternoon.

2257
03:19:46,870 --> 03:19:48,590
Chair Herwila and Board members.

2258
03:19:49,070 --> 03:19:53,390
My name is Casey Hedderley and I'm the intern with the Center of Valley Autoponse society.

2259
03:19:54,590 --> 03:19:58,970
I'm going to ask that you stop Shuko Resort's Finishing Project.

2260
03:19:59,350 --> 03:19:59,970
We are concerned.

2261
03:20:00,000 --> 03:20:07,560
In fact, the six-plus years of construction will have a new fire. Not only in terms of carbon emissions,

2262
03:20:07,900 --> 03:20:13,500
inflation, but also because of the construction-related light and future permanently in an area

2263
03:20:13,500 --> 03:20:18,680
that is currently dark at night. We are just now appreciating that the artificial light at night

2264
03:20:18,680 --> 03:20:23,320
that we create negatively impacts the health and behavior of a large number of species,

2265
03:20:23,780 --> 03:20:27,160
and throughout and spoke the aquatic and terrestrial ecosystem function.

2266
03:20:27,160 --> 03:20:34,800
Delighting from this project will undoubtedly have an adverse effect on a local ecosystem, and we expect less due damage to the current.

2267
03:20:36,240 --> 03:20:41,880
SEPA has supported the adoption of the valid habitat land, which found water is a pertinent.

2268
03:20:42,660 --> 03:20:47,800
This plan covers biological impacts of development, land use decisions, and activities.

2269
03:20:47,800 --> 03:20:56,480
It not only sets aside land to mitigate impacts on our species and ecosystems, but also plans to increase the value of the habitat to research.

2270
03:20:59,780 --> 03:21:09,540
The Dan projects require instrumentation only involve reserving where the impact of the project on the VHP remains significant and unavoidable,

2271
03:21:09,700 --> 03:21:17,960
because the project calls for competition over mitigation land, and its claim on such land will prevent the VHP for using it for habitat restoration in the hands of it.

2272
03:21:17,960 --> 03:21:22,020
Please stop this project for the sake of our Senate clear about the species and the

2273
03:21:22,020 --> 03:21:22,540
systems.

2274
03:21:23,140 --> 03:21:23,960
Thank you.

2275
03:21:25,020 --> 03:21:25,340
Thank you.

2276
03:21:25,340 --> 03:21:25,820
Thank you, Ms. Heldery.

2277
03:21:27,160 --> 03:21:27,360
All right.

2278
03:21:27,540 --> 03:21:29,580
Next speaker is Annie Yang.

2279
03:21:31,080 --> 03:21:31,280
Michelle?

2280
03:21:33,980 --> 03:21:35,300
Good afternoon, Chair Raila.

2281
03:21:35,340 --> 03:21:36,280
Vice Chair Keegan.

2282
03:21:37,140 --> 03:21:38,420
My name is Annie Yang.

2283
03:21:38,500 --> 03:21:41,000
And I'm the chair for the Environmental Action Committee of the Senate

2284
03:21:41,000 --> 03:21:42,560
Chair of Eleanor Mons Society.

2285
03:21:43,060 --> 03:21:45,660
I'm speaking on behalf of the committee to oppose the

2286
03:21:45,660 --> 03:21:47,220
the Reservoir expansion project.

2287
03:21:47,920 --> 03:21:49,360
Our committee is focused on promoting

2288
03:21:49,360 --> 03:21:52,040
a healthy, regional ecology that supports biodiversity,

2289
03:21:52,660 --> 03:21:53,880
diversity, and human will be

2290
03:21:53,880 --> 03:21:57,120
through protecting open space, wildlife, and their habitat.

2291
03:21:57,980 --> 03:21:59,920
This project destroys and habitat,

2292
03:21:59,920 --> 03:22:01,200
wildlife connectivity,

2293
03:22:01,780 --> 03:22:03,720
which we, the Center for Development Society,

2294
03:22:03,960 --> 03:22:06,080
have worked so hard to protect in our county.

2295
03:22:06,920 --> 03:22:08,440
Not only will the Reservoir destroy,

2296
03:22:08,780 --> 03:22:10,480
but will get sick and more a little deal with lens

2297
03:22:10,480 --> 03:22:12,700
and repair and habitat, it will introduce

2298
03:22:12,700 --> 03:22:15,120
poor quality Delta water, and with it,

2299
03:22:15,120 --> 03:22:19,520
Invasive aquatic organisms and pathogens that will be impossible to keep out of our local

2300
03:22:19,520 --> 03:22:21,840
watersheds and modern day in the long term.

2301
03:22:22,740 --> 03:22:27,640
We know that in basis species are one of the primary drivers of species extinction and

2302
03:22:27,640 --> 03:22:28,740
ecosystem class.

2303
03:22:29,480 --> 03:22:34,580
However, we don't need to take this risk, nor flooding the sink habitat, because as other

2304
03:22:34,580 --> 03:22:40,680
speakers have mentioned here, there are other ways to meet water reliability through increased water

2305
03:22:40,680 --> 03:22:44,640
conservation, storm water capture, improved efficiency, and water

2306
03:22:44,640 --> 03:22:49,240
cycling, many of which value water is already engaged in. Let's maximize

2307
03:22:49,240 --> 03:22:53,740
those efforts across those less impactful avenues before building any

2308
03:22:53,740 --> 03:23:00,880
risk for. Thank you. Thank you. Thank you. Thank you. The next speaker is

2309
03:23:00,880 --> 03:23:01,900
Evelyn Charmy.

2310
03:23:05,040 --> 03:23:05,040
Okay.

2311
03:23:08,940 --> 03:23:09,520
Yes, we can.

2312
03:23:11,540 --> 03:23:13,320
Thank you very much. I did not

2313
03:23:13,320 --> 03:23:19,680
know that you put the opportunity to speak today. I, of course, agree for a little water

2314
03:23:19,680 --> 03:23:25,440
this, because I've said particularly Nancy Blastos and the Audemns Society, but I just

2315
03:23:25,440 --> 03:23:33,600
wanted to add a couple more things in response to the union. There are many other jobs that

2316
03:23:33,600 --> 03:23:43,300
the union actually have access to. You have the medicine down retrofit, you have the loss of

2317
03:23:43,300 --> 03:23:48,680
all water projects as they recycle water projects that will be coming online, once you receive

2318
03:23:49,320 --> 03:23:54,280
the direction from the state water board with the direct portable reels, the legislation

2319
03:23:54,280 --> 03:23:59,520
that we can all move out on. And you also have lots of water-reformation projects.

2320
03:24:00,820 --> 03:24:04,300
Everyone is talking about Stonewater Capture. Stonewater Capture, you know these are

2321
03:24:04,300 --> 03:24:11,460
surely ready projects that could be done within communities, spreading grounds, also can happen instead

2322
03:24:11,460 --> 03:24:19,300
of building a new dam, not to mention all the environmental logistics effects and the pricing.

2323
03:24:20,660 --> 03:24:25,800
I want you to point out that this is the city valley water that is also considering the delta

2324
03:24:25,800 --> 03:24:33,960
conveys. These are between the delta conveys and the check-o dam expansion project. We are

2325
03:24:33,960 --> 03:24:41,280
talking about two billion dollar projects, many billions, who is supposed to put to the cost

2326
03:24:41,280 --> 03:24:47,440
of these huge projects. So let us think about those things, who bears the cost, who benefits,

2327
03:24:47,940 --> 03:24:54,940
who days and can our people afford to pay those huge rates? There are many other ways which

2328
03:24:54,940 --> 03:24:59,960
women can meet out water, future and when folks speak about it.

2329
03:25:01,180 --> 03:25:10,760
Let's just remember. In this climate crisis that we are in, we have more dry years than we have went yesterday.

2330
03:25:11,320 --> 03:25:27,140
So that means, a lot of the time, this water does not come in, it will not be coming out, so why we spend so much money on a neutral project, when we receive rain, we will be receiving a lot less of it, we will be receiving a lot less snow.

2331
03:25:27,140 --> 03:25:31,720
and because it's going to be so hot, the snow will be minting much quicker that it normally

2332
03:25:31,720 --> 03:25:38,820
would so that it can perpetuate into the aquifers. Instead, let's build cities and streets that

2333
03:25:38,820 --> 03:25:45,680
actually encourage the population of water through those surfaces so that they can go down into

2334
03:25:45,680 --> 03:25:52,000
our aquifers and restart on the ground where there is less evaporation. Thank you so much for

2335
03:25:53,500 --> 03:25:54,840
Thank you, Mr. Chairman.

2336
03:25:56,100 --> 03:25:57,840
Our next speaker is Kacha Irvin.

2337
03:26:00,880 --> 03:26:01,520
Mr. Irvin?

2338
03:26:07,180 --> 03:26:07,620
Good afternoon.

2339
03:26:08,060 --> 03:26:08,600
Good afternoon.

2340
03:26:10,400 --> 03:26:10,900
Good afternoon.

2341
03:26:11,180 --> 03:26:11,480
Good afternoon.

2342
03:26:11,860 --> 03:26:12,540
Can you hear me?

2343
03:26:12,700 --> 03:26:13,120
Yes.

2344
03:26:13,960 --> 03:26:15,780
This is Kacha Irvin of this year club

2345
03:26:15,780 --> 03:26:18,040
Blum of Canada Chapter Water Community.

2346
03:26:19,300 --> 03:26:22,140
This year club agrees with many of the already stated reasons

2347
03:26:22,140 --> 03:26:24,800
to stop pursuing the Pacheco Dam project.

2348
03:26:25,900 --> 03:26:28,160
We're especially concerned about the environmental

2349
03:26:28,160 --> 03:26:35,240
manage that will result from both construction and operation of the dam. The destruction of indigenous

2350
03:26:35,240 --> 03:26:41,900
cultural artifacts and the cost burden on low income communities that will only be increasing.

2351
03:26:43,560 --> 03:26:48,200
Alas, the board strongly cares about the demands of hearing to decide whether to just continue

2352
03:26:48,200 --> 03:26:52,760
this project. It seems we're stuck with this project for at least another 20 months.

2353
03:26:52,760 --> 03:27:03,060
Assuming there are 60% design remains on schedule, which is unlikely given the history of large projects at Valley Walk.

2354
03:27:04,440 --> 03:27:13,160
Due to this history, the water storage exploratory committee needs to trap progress towards each milestone in the schedule presented today.

2355
03:27:13,960 --> 03:27:20,000
So potential delays can be identified as soon as possible, and actions can be taken to get back on track.

2356
03:27:20,000 --> 03:27:33,200
Please direct staff to develop set schedules for milestones such as geotechnical explorations, 60% design documents, and draft EIR, EIS, etc.

2357
03:27:34,740 --> 03:27:42,740
It's also important for the storage committee to meet regularly and receive complete and transparent project update at every meeting.

2358
03:27:43,980 --> 03:27:51,800
On another point, it's good to see that BF's damry is now included as a water prime master plan project.

2359
03:27:53,280 --> 03:27:58,900
It's recently suggested several times that the Board requested an initial presentation on this project,

2360
03:27:59,440 --> 03:28:01,400
which has never been presented to the Board.

2361
03:28:02,280 --> 03:28:05,660
Such a presentation should be addressed to the Board in the public.

2362
03:28:05,660 --> 03:28:11,240
I hope there's time after public comment for board members to respond and perhaps refer

2363
03:28:11,240 --> 03:28:12,880
these suggestions to staff.

2364
03:28:13,960 --> 03:28:15,040
Thank you for your consideration.

2365
03:28:16,920 --> 03:28:17,440
Thank you, Mr. Serban.

2366
03:28:18,060 --> 03:28:19,760
Our next speaker is Will Smith.

2367
03:28:21,200 --> 03:28:21,860
Will Smith?

2368
03:28:23,740 --> 03:28:24,960
Good afternoon, Mr. Smith.

2369
03:28:27,080 --> 03:28:27,940
Good afternoon.

2370
03:28:27,940 --> 03:28:31,820
We've heard about it here, and we've heard that we can, as we'll submit them to this

2371
03:28:31,820 --> 03:28:33,280
and represent it for it.

2372
03:28:33,400 --> 03:28:37,120
I will give you double the local three, three, two, represent members, and represent

2373
03:28:37,120 --> 03:28:40,620
the staff of their county over 3,500 members.

2374
03:28:41,460 --> 03:28:43,420
That works here, and staff of their county.

2375
03:28:44,440 --> 03:28:46,460
And we are as a support of the project.

2376
03:28:48,320 --> 03:28:52,020
We are a favorite post, you know, having quality drinking water.

2377
03:28:53,000 --> 03:28:57,920
To pack water that can be stored and preserved, so therefore, we have to

2378
03:28:57,920 --> 03:29:02,200
all of the water flow on children, and all of our grandchildren, and that would be a great

2379
03:29:02,200 --> 03:29:03,140
branch right here.

2380
03:29:04,140 --> 03:29:09,200
We know California is especially the city, we need to have no stranger to drop, so it's

2381
03:29:09,200 --> 03:29:14,100
been nice to have with the mouth of water that we have, but we need to finally make sure

2382
03:29:14,100 --> 03:29:17,520
that we capture and store and secure the water.

2383
03:29:18,620 --> 03:29:22,120
Unfortunately, this can't be kicked out of the road.

2384
03:29:22,120 --> 03:29:30,320
And due to that, this can turn into a bold and bold, but it's not unique to just this project.

2385
03:29:30,640 --> 03:29:35,960
Projects that's been delayed in construction in the past had escalating construction costs.

2386
03:29:36,620 --> 03:29:41,760
So it's something that's kind of common in general, the construction industry.

2387
03:29:43,120 --> 03:29:50,020
Also, this get down and help preserve this advantage of community from the name of the letter.

2388
03:29:50,240 --> 03:29:52,200
Every year, it sounds like.

2389
03:29:53,300 --> 03:29:59,960
So I hope this board will push this project forward, move it forward, and help create several good.

2390
03:30:04,680 --> 03:30:07,240
Thank you, Mr. Smith.

2391
03:30:08,760 --> 03:30:13,220
Our next speaker, Jay Howleron?

2392
03:30:13,800 --> 03:30:15,980
Mr. Howleron?

2393
03:30:16,420 --> 03:30:28,160
Yes. Hi. Thank you for the opportunity to speak. My name is Jill Howleron, and I'm not particularly

2394
03:30:28,160 --> 03:30:40,740
about many things, the cost, the instability of the ground, as Molly pointed out, many things

2395
03:30:40,740 --> 03:30:47,300
about this, but perhaps particularly the destruction of hundreds of bakers of, oh, good

2396
03:30:47,300 --> 03:30:52,900
second or fourth, repair and habitat. This is in some simple black and white issue where,

2397
03:30:52,900 --> 03:30:54,040
Okay, we need more water.

2398
03:30:54,420 --> 03:30:57,360
Let's just really, really decide to expand the reservoir.

2399
03:30:58,220 --> 03:31:00,040
This has to be something that's carefully planned

2400
03:31:00,040 --> 03:31:01,680
and thought out intelligently.

2401
03:31:02,660 --> 03:31:07,860
And there are plenty of other water collection facilities

2402
03:31:07,860 --> 03:31:08,940
in our area.

2403
03:31:09,920 --> 03:31:14,600
And value water has many projects to improve water supply,

2404
03:31:15,040 --> 03:31:16,160
going on right now.

2405
03:31:17,900 --> 03:31:20,860
So, and that it will, this project, I'm concerned,

2406
03:31:20,860 --> 03:31:28,240
about the environmental impacts in Latin, including sending poor quality water into

2407
03:31:28,240 --> 03:31:34,620
Chicago Creek and Monterey Bay, ultimately, I think this thing is a disaster

2408
03:31:34,620 --> 03:31:38,740
rate to happen. So I just want to be on record, you know, I just want you to let

2409
03:31:38,740 --> 03:31:42,760
you know these amount concerns. Thank you. Thank you, Miss Helver.

2410
03:31:44,920 --> 03:31:45,680
That is all the

2411
03:31:45,680 --> 03:31:51,960
hands I have raised on Zoom. Mr. Chair. Thank you, Clerk. We do have some speakers in

2412
03:31:51,960 --> 03:31:54,880
building, Ms. Meg Giberson,

2413
03:31:57,330 --> 03:32:03,130
I see a G-I-B-E-E-R-S-L-M-I.

2414
03:32:06,820 --> 03:32:10,320
Okay, afternoon, Mr. Chair, members of the Board, my name is Meg Giberson,

2415
03:32:10,420 --> 03:32:15,880
I'm speaking today for myself and my husband, we believe the district should pivot and

2416
03:32:15,880 --> 03:32:22,300
should eliminate consideration of the Pacheco Reservoir expansion. It's a project that's

2417
03:32:22,300 --> 03:32:27,240
potentially reaching $6 billion, and that doesn't guarantee an increased water supply.

2418
03:32:28,040 --> 03:32:33,460
The only certainty is that the budget will keep going up in the costs will continue increasing.

2419
03:32:34,540 --> 03:32:40,520
But Chaco has rising rates, rising costs, and this will disproportionately impact people

2420
03:32:40,520 --> 03:32:44,080
who are less able to pay, as has been mentioned by other speakers.

2421
03:32:44,760 --> 03:32:51,840
A recent CEO bulletin reported that $60 over $62 million have already been spent on the

2422
03:32:51,840 --> 03:32:53,680
takeout, which is not minimal.

2423
03:32:55,020 --> 03:33:00,080
That money would better have been spent on appropriate water recycling, maintenance of supply

2424
03:33:00,080 --> 03:33:05,920
infrastructure, and use of storm water, which sources are local, drought-proof, reliable,

2425
03:33:06,540 --> 03:33:11,380
and minimized our carbon footprint and can be sustained over the long term.

2426
03:33:12,480 --> 03:33:18,260
Dams are not a sure bet with drought and climate change, and that's clear from the past few

2427
03:33:18,260 --> 03:33:24,360
years. And if you look at the status of the largest dams on the Colorado River, which

2428
03:33:24,360 --> 03:33:31,600
are only 23 and 28 percent full. The Pecheco Villians could be spent. Instead, on such

2429
03:33:31,600 --> 03:33:38,180
important local timely projects as cheaper groundwater, a Stanford research, Stanford was

2430
03:33:38,180 --> 03:33:43,580
mentioned by one of the directors, Stanford features research shows that groundwater costs

2431
03:33:43,580 --> 03:33:48,440
five to nine times less than stored water surface storage.

2432
03:33:49,400 --> 03:33:54,320
Groundwater banks could provide $400 to $600 per acre

2433
03:33:54,320 --> 03:33:57,320
foot water for our community.

2434
03:33:58,160 --> 03:34:02,220
As compared with Pachakos, 18,800 per storage,

2435
03:34:02,500 --> 03:34:04,660
which is a staff figure, a Santa Clara Valley

2436
03:34:04,660 --> 03:34:05,820
water district staff figure.

2437
03:34:06,540 --> 03:34:09,480
Groundwater storage, of course, also saves evaporation

2438
03:34:09,480 --> 03:34:19,540
that we lose to the air because of climate change, apparently about two million acre-feet

2439
03:34:19,540 --> 03:34:25,940
a year, are lost in California because of evaporation from reservoirs and canals, and

2440
03:34:25,940 --> 03:34:32,560
that's about one-third of what all urban use in California is, so storing in an open reservoir

2441
03:34:32,560 --> 03:34:34,080
is not a good option.

2442
03:34:34,080 --> 03:34:40,080
Raising existing Bay Area dams could be another good solution and most of the caros has been mentioned.

2443
03:34:41,560 --> 03:34:44,360
We have which has partners and that's all been quite discussed.

2444
03:34:44,840 --> 03:34:50,240
Increasing reuse and recycling, I think Orange County Water District's experience is actually applicable here.

2445
03:34:51,300 --> 03:34:59,300
Their expansion of their wastewater reuse facility will be producing about 112 to 145,000 acre feet a year.

2446
03:34:59,300 --> 03:34:59,880
That.

2447
03:35:00,000 --> 03:35:05,400
That is, as much as or more than what Santa Clara Valley Water District says, they're going to be important.

2448
03:35:05,940 --> 03:35:10,240
So that's a very important figure to consider. We could do that here.

2449
03:35:11,340 --> 03:35:15,920
Pacheco will not drought through our county. It will be subject to the downsides of evaporation,

2450
03:35:16,180 --> 03:35:22,960
siltation, greenhouse gas production, toxic algae buildup, and high cost. We ask you, please,

2451
03:35:24,060 --> 03:35:27,480
cease considering this. And thank you for the opportunity to comment.

2452
03:35:28,840 --> 03:35:29,440
Thank you.

2453
03:35:31,600 --> 03:35:32,080
Thank you.

2454
03:35:32,080 --> 03:35:32,660
David Kennedy.

2455
03:35:48,400 --> 03:35:48,780
Thank you, Chair.

2456
03:35:48,940 --> 03:35:51,580
Thank you, Gordon, for this opportunity to speak with you.

2457
03:35:52,240 --> 03:35:54,760
I don't really have prepared notes.

2458
03:35:55,240 --> 03:36:04,780
I came here as part of the growing, large contingent of folks who do not want you to build this step.

2459
03:36:05,320 --> 03:36:06,480
You should not do this.

2460
03:36:06,480 --> 03:36:11,340
It seems very against common nature,

2461
03:36:11,400 --> 03:36:15,120
against common thought to want to build a dam

2462
03:36:15,910 --> 03:36:17,520
when we have so much drought.

2463
03:36:18,540 --> 03:36:20,460
We can drive around to all our dams now

2464
03:36:20,460 --> 03:36:22,160
and they are basically empty.

2465
03:36:23,280 --> 03:36:28,640
Also, I am a resident of San Jose District 1.

2466
03:36:28,820 --> 03:36:30,840
I definitely will be sharing my thoughts

2467
03:36:30,840 --> 03:36:33,140
about this meeting with all my neighbors.

2468
03:36:33,520 --> 03:36:35,900
It wasn't happy with what I saw here.

2469
03:36:36,800 --> 03:36:42,780
All the stuff that you already heard, you already know all this stuff, buildings, a dam is the worst way to capture water.

2470
03:36:42,920 --> 03:36:50,200
It evaporates. You may help those salmon, but you're killing everything else that you're flooding the area in.

2471
03:36:51,760 --> 03:37:00,680
So, you're choosing your points to make us want this, which is exactly how I felt about that presentation.

2472
03:37:00,680 --> 03:37:04,620
You were all just choosing the points that would make this look wonderful,

2473
03:37:05,280 --> 03:37:08,820
whereas when we wanted to know details where it didn't make it wonderful,

2474
03:37:09,040 --> 03:37:13,100
we had to, we, I'm with you, had to ask lots of detail

2475
03:37:13,100 --> 03:37:17,740
and you had to ask the specific question in order to get the details that,

2476
03:37:18,320 --> 03:37:20,460
well, we don't have any partners.

2477
03:37:21,760 --> 03:37:26,500
We are on our own, basically, and I did think that I saw

2478
03:37:26,500 --> 03:37:34,740
And a little box, a little blue box, it had the partners underneath, the partners of

2479
03:37:34,740 --> 03:37:39,960
how much they were going to participate and give, but above that were the rate payers.

2480
03:37:40,760 --> 03:37:45,120
So if those partners don't come in, it's the rate payers who are going to be on the hook

2481
03:37:45,120 --> 03:37:48,200
for that $2.5 billion or whatever that was.

2482
03:37:49,000 --> 03:37:49,880
It is ridiculous.

2483
03:37:49,880 --> 03:37:56,560
I have a nine hundred square foot house. My PG&E bill went from one 20 a month to

2484
03:37:56,560 --> 03:38:04,380
six hundred dollars a month. Ridiculous. It's crazy. You are going to do that to us

2485
03:38:04,380 --> 03:38:12,040
also. You're going to make our costs go up. There was a comment that was made another

2486
03:38:12,040 --> 03:38:19,120
disingenuous instance of comment about mental health and people work being in the

2487
03:38:19,120 --> 03:38:23,400
creeks because the mental health will let me tell you some of them in the creeks because

2488
03:38:23,400 --> 03:38:28,980
they can't pay the bills the bills were raised up so much they can't pay them and so

2489
03:38:28,980 --> 03:38:36,630
they are out and now they are living in that creek so it's not just because they having

2490
03:38:36,630 --> 03:38:41,010
some mental illness are the living there will cause you some

2491
03:38:43,410 --> 03:38:48,020
no to this project thank you sir

2492
03:38:48,020 --> 03:38:50,080
I appreciate it. That's all the speakers we have.

2493
03:38:50,240 --> 03:38:51,060
Mr. Chair, please.

2494
03:38:51,160 --> 03:38:51,620
Excuse me.

2495
03:38:51,800 --> 03:38:53,880
Sorry. We have one more hand that just raised on.

2496
03:38:54,980 --> 03:38:56,840
So, Sean E. Kleinhouse.

2497
03:38:57,620 --> 03:38:57,840
Okay.

2498
03:39:02,130 --> 03:39:04,610
We'll put up the note, share it with Rela and the right-thru.

2499
03:39:05,190 --> 03:39:06,670
Thank you for letting me speak.

2500
03:39:06,850 --> 03:39:08,410
My name is Sean E. Kleinhouse.

2501
03:39:08,910 --> 03:39:09,530
I'm being promised.

2502
03:39:09,630 --> 03:39:10,830
I look at the Sun and Clara,

2503
03:39:11,010 --> 03:39:12,150
but we want the one society.

2504
03:39:12,630 --> 03:39:14,750
And we're requesting that the right stuff

2505
03:39:15,430 --> 03:39:17,050
to stop, stop to stop working

2506
03:39:17,050 --> 03:39:19,550
on the particular right-of-art expansion project.

2507
03:39:19,550 --> 03:39:25,850
The staff presentation showed that value order experts will continue to spend money on these other

2508
03:39:25,850 --> 03:39:32,170
rates, expenses, and family hardship projects, and it seems that the clear decision

2509
03:39:32,170 --> 03:39:37,310
points will not come to you and let us be specifically set to date with staff.

2510
03:39:37,710 --> 03:39:44,310
Otherwise, if the process will continue, the EERR will be recirculated, also 3 years old,

2511
03:39:44,310 --> 03:39:49,110
both to value rate and re-inside rate and additional tens of millions of dollars.

2512
03:39:50,090 --> 03:39:54,310
Stop in the right way to mention, perfecting downstream communities from scratch

2513
03:39:54,310 --> 03:39:57,230
to one of the benefits of this project.

2514
03:39:57,550 --> 03:39:59,670
And of course, that is very helpful.

2515
03:40:00,000 --> 03:40:06,440
But there are better opportunities by the order to purchase a plan to provide adequate plan function.

2516
03:40:06,900 --> 03:40:13,240
It's far less expensive than this town, moreover the end and provides better than at-based communities and ecosystems.

2517
03:40:14,020 --> 03:40:17,900
So please don't be as flooding as a rain fairings study opportunities for that.

2518
03:40:18,700 --> 03:40:26,680
When the town was proposed, on the bumpy mother pose, it took us time to study the promises to restore so long in migration,

2519
03:40:26,680 --> 03:40:33,180
and location of water to why the refugees in the center of the valley that are really pretty close to mine for three birds.

2520
03:40:33,600 --> 03:40:37,580
So we looked for the silver lining to this immense arm that is part of it,

2521
03:40:37,600 --> 03:40:43,900
could cause and would cause to come to use remain natural landscapes and waterways.

2522
03:40:44,560 --> 03:40:46,260
But we found lots of silver lining.

2523
03:40:46,760 --> 03:40:50,220
It proposed by a large number of benefits for my youth compared to the home.

2524
03:40:50,560 --> 03:40:54,740
Only a meager or water allocation was offered to the center of valley refugees,

2525
03:40:54,740 --> 03:40:57,980
and it was not offered in drivers, and it's needed.

2526
03:40:58,620 --> 03:41:03,260
At the power of operation of the dam is likely to cause significant harm,

2527
03:41:03,700 --> 03:41:07,560
and alternatively it says that we would provide better solutions for some more needs.

2528
03:41:08,140 --> 03:41:12,640
And the harm to the rest here, right here, in aquatic species and ecosystem, is devastating.

2529
03:41:14,600 --> 03:41:17,340
The further your lab is, don't project more forward.

2530
03:41:17,600 --> 03:41:19,560
Don't worry, if it could be stuck.

2531
03:41:20,020 --> 03:41:22,300
Please find a way to stop it today.

2532
03:41:22,300 --> 03:41:31,020
focus on alternative ways to provide water supply and flood protection and the benefits of this one is supposed to bring us.

2533
03:41:31,140 --> 03:41:32,320
Thank you.

2534
03:41:33,660 --> 03:41:34,080
Thank you.

2535
03:41:34,380 --> 03:41:35,680
Any more speakers?

2536
03:41:36,540 --> 03:41:38,320
I have no other hands raised.

2537
03:41:38,880 --> 03:41:46,560
Okay, so I want to acknowledge the online messaging that we received from Elizabeth Smith,

2538
03:41:46,560 --> 03:41:57,560
from Irene Stepanova, and Les Kichler, also an opposition of the reservoir and also letter

2539
03:41:57,560 --> 03:42:05,580
from the Loma Prieta Sierra Club and also the Solori Merced Law firm, also expressing

2540
03:42:05,580 --> 03:42:13,320
opposition, but I also want to express our thanks and gratitude to the Santa Clara County

2541
03:42:13,320 --> 03:42:19,900
labor group that supports this project representing 35,000 members.

2542
03:42:21,260 --> 03:42:23,740
So we are finished with this information.

2543
03:42:24,700 --> 03:42:27,040
I just want to make a couple of comments from the Board,

2544
03:42:27,500 --> 03:42:28,160
the Chair's position.

2545
03:42:29,540 --> 03:42:32,540
So this last couple of months have been extraordinary

2546
03:42:33,300 --> 03:42:38,800
as we have all experienced one atmospheric river after another.

2547
03:42:38,800 --> 03:42:45,820
You should be called a pineapple express somewhere emergent to what we are experiencing today.

2548
03:42:47,440 --> 03:42:55,860
And in a matter of a few months, are reservoirs that were at very low, not completely empty,

2549
03:42:56,060 --> 03:42:58,800
but some of them were, are now full, and some are spilling.

2550
03:42:59,820 --> 03:43:07,740
And we've seen some occurrences that are occurring with local flooding caused by the amount

2551
03:43:07,740 --> 03:43:14,360
of rainfall that we've received, and also the catastrophe that we saw in the Pajaro River

2552
03:43:14,360 --> 03:43:21,640
region of Watsonville and Pajaro, the community of Pajaro, over 2,000 people are homeless

2553
03:43:21,640 --> 03:43:26,720
And out of work, and there are fields that they work on in labor are flooded.

2554
03:43:28,900 --> 03:43:33,720
When I had a conversation, the other day with Director Bell, we spoke and said,

2555
03:43:33,980 --> 03:43:35,100
John, what can we do?

2556
03:43:35,320 --> 03:43:37,800
And I said, well, you know, Director's Santos, and I said,

2557
03:43:37,900 --> 03:43:40,200
I don't know how to river flood protection authority.

2558
03:43:41,360 --> 03:43:44,020
So we had a Director Bell, and I had a conversation.

2559
03:43:44,300 --> 03:43:45,520
And I made a call.

2560
03:43:45,920 --> 03:43:50,340
I called to the Executive Director of who we work with on the board

2561
03:43:50,340 --> 03:43:54,060
said director Sanctus and I sit on and I asked for the name of the person that's actually

2562
03:43:54,060 --> 03:44:00,400
in charge of directing the reconstruction of the Pajaro along with the Army Corps of Engineers.

2563
03:44:01,740 --> 03:44:08,400
And so I left the message and the contact to return a call, so offering our value water resources.

2564
03:44:08,860 --> 03:44:13,920
Well, I didn't get a return call, but then yesterday I saw on the news all the elected

2565
03:44:13,920 --> 03:44:20,640
that were there from the governor to the local elected, et cetera, stating that the one person

2566
03:44:20,640 --> 03:44:23,100
the group that was not there was the Army Corps of Engineers.

2567
03:44:24,640 --> 03:44:32,040
Because in their words, the benefit doesn't calculate for a poverty-stricken community to expedite

2568
03:44:32,040 --> 03:44:38,860
the funding and the process to correct the Paja River breach, which has occurred over the

2569
03:44:38,860 --> 03:44:42,680
past 20 years or 30 years, every five, 10 years.

2570
03:44:44,220 --> 03:44:49,120
So had the Pacheco Reservoir been built, say,

2571
03:44:49,180 --> 03:44:50,700
maybe five, 10, 15 years ago.

2572
03:44:51,460 --> 03:44:55,020
The probability, the probability of that flood

2573
03:44:55,020 --> 03:44:57,460
occurring downstream would not have happened.

2574
03:44:57,460 --> 03:44:59,960
So...

2575
03:45:00,000 --> 03:45:05,700
As we say, you know, we don't want to build these things because they cost too much, you know, everything cost a lot of money these days.

2576
03:45:06,680 --> 03:45:20,240
And what we do here, a value wire, we don't just support the board members that have their representatives come in and tell us what to do and not to not to fund these things.

2577
03:45:20,260 --> 03:45:25,480
We represent almost two million people, the seven directors and seven districts.

2578
03:45:25,480 --> 03:45:33,780
So, they're not all here, you're here and we appreciate your time, but we've got to hear from the two million almost two million people.

2579
03:45:34,300 --> 03:45:34,860
Well, we do.

2580
03:45:35,020 --> 03:45:39,020
We hear from their electives from the City Council of the 15 cities that they represent.

2581
03:45:40,220 --> 03:45:45,860
And we board members sit on the general plan updates, approximately every 5 or 10 years,

2582
03:45:46,240 --> 03:45:51,160
as a former City Council member and mayor of the community that I live in in Morgan Hill,

2583
03:45:51,160 --> 03:45:59,220
We have to sit there and listen to the development, the growth, the population, expansions, et cetera, and all these 15 communities.

2584
03:46:00,120 --> 03:46:06,060
Now, remember, back in the 1970s, the population of Santa Clara County was less than a minute in people.

2585
03:46:06,660 --> 03:46:11,280
Today, we're approaching seven, two minute in people.

2586
03:46:12,460 --> 03:46:13,940
Anderson Dan came up a couple of times.

2587
03:46:13,940 --> 03:46:19,260
So lately, because it's under reconstruction, we've had tours of the dam under reconstruction

2588
03:46:19,260 --> 03:46:19,920
currently.

2589
03:46:20,940 --> 03:46:25,560
And a visual that I ask you every people, everybody that tours the dam, that goes up to

2590
03:46:25,560 --> 03:46:27,740
the very crest, is to look west.

2591
03:46:28,640 --> 03:46:29,100
Look west.

2592
03:46:29,120 --> 03:46:33,340
Don't look up to the dam and east over the photos, which is a beautiful sight, by the way.

2593
03:46:33,920 --> 03:46:36,280
When you look west, I say, what do you envision?

2594
03:46:37,160 --> 03:46:41,440
50 years ago, before the dam was actually built, what did this area look like?

2595
03:46:41,440 --> 03:46:50,240
Well, he looked west from the dam to the western side of Morgan Hill, 55, 60 years ago.

2596
03:46:50,400 --> 03:46:56,560
There was farms, ranchers, orchards, a valley of hearts to light.

2597
03:46:57,340 --> 03:47:03,720
From Morgan Hill, Gilroy, Samirteen, all the way up to Palo Alto, stretching all the way to San Francisco.

2598
03:47:04,600 --> 03:47:09,500
Well, back in the 1970s, when our community started to grow, cities were growing left and right.

2599
03:47:09,500 --> 03:47:16,280
We're more from processing apricot chips to silicon chips.

2600
03:47:16,740 --> 03:47:21,280
In a matter of a blink of an eye, the population of this region exploded,

2601
03:47:21,940 --> 03:47:24,960
the demands for everything, we need more, whatever.

2602
03:47:25,860 --> 03:47:28,280
One of the things that we do here at Valley Water,

2603
03:47:28,840 --> 03:47:34,160
is we have a agriculture water advisory committee,

2604
03:47:34,160 --> 03:47:41,140
And agriculture still is a viable source for Santa Clara County as it is for the entire

2605
03:47:41,140 --> 03:47:42,260
state of California.

2606
03:47:43,240 --> 03:47:45,080
So in essence, we don't just manage water.

2607
03:47:45,540 --> 03:47:47,400
We manage our food supply.

2608
03:47:48,140 --> 03:47:56,160
California is recognized globally as the world source for growth of vegetables, fruits and

2609
03:47:56,160 --> 03:48:01,860
vegetables, fruit tree, nuts, lettuce, cabbage, apricots, you name it.

2610
03:48:02,160 --> 03:48:03,060
We feed the world.

2611
03:48:03,740 --> 03:48:07,480
So, we don't just supply you with water, we supply you with food.

2612
03:48:08,480 --> 03:48:12,400
So it's important to know these things and we're planning for our future generation.

2613
03:48:12,560 --> 03:48:18,300
This project that we're talking about today, well, maybe I'll see it in my lifetime, I don't

2614
03:48:18,300 --> 03:48:18,720
know.

2615
03:48:19,800 --> 03:48:22,500
I think I'll see the finish of Anderson, hopefully, God willing.

2616
03:48:23,740 --> 03:48:28,340
So that's the importance of what these projects that we look at and what the cost start

2617
03:48:28,340 --> 03:48:32,020
today versus what they were yesterday and what they're going to be tomorrow.

2618
03:48:34,120 --> 03:48:36,640
When you look at what happened in this last couple of weeks,

2619
03:48:36,940 --> 03:48:42,600
the actually from the weekend to today with Silicon Valley bank.

2620
03:48:43,820 --> 03:48:49,960
That sent a title wave effect around the world about concerns for bank's failure.

2621
03:48:50,720 --> 03:48:53,220
Well, bigger banks are securing their doing well.

2622
03:48:53,460 --> 03:48:56,320
This bank, accordingly, there's some speculation

2623
03:48:56,320 --> 03:49:00,760
is the way these things occurred, but it happened and it's sent a shockwave because what

2624
03:49:00,760 --> 03:49:06,180
did it happen right here in Silicon Valley? The home of innovation, the smartest people

2625
03:49:06,180 --> 03:49:11,220
in the world, one of the richest areas on the planet to live, if you have a home and you live

2626
03:49:11,220 --> 03:49:17,040
in this area, congratulations, you made a smart investment. But there are also people that live

2627
03:49:17,040 --> 03:49:23,280
in this community amongst us that are not benefiting from the values of what the riches are

2628
03:49:23,280 --> 03:49:24,240
in Silicon Valley.

2629
03:49:24,740 --> 03:49:25,800
And these are service providers.

2630
03:49:26,380 --> 03:49:28,720
These are people that work in the service industry.

2631
03:49:29,260 --> 03:49:29,820
They're struggling.

2632
03:49:30,280 --> 03:49:32,300
They can't afford to live in this town, but yet they do.

2633
03:49:32,900 --> 03:49:35,780
And their children, their children that we look at

2634
03:49:35,780 --> 03:49:37,900
as our future leaders of our community,

2635
03:49:38,560 --> 03:49:41,220
don't have the same advantages coming from these

2636
03:49:41,220 --> 03:49:44,440
challenge communities, as those that live in Palo Alto,

2637
03:49:44,900 --> 03:49:48,440
they live in Las Gatos or in Morgan Hill.

2638
03:49:48,960 --> 03:49:50,080
The more affluent communities.

2639
03:49:50,640 --> 03:49:58,020
So, when we look at all these things and we measure what water does, what is water all about?

2640
03:49:59,060 --> 03:49:59,980
Water is called...

2641
03:50:00,000 --> 03:50:08,340
Life, the essence of life. Water, food, and air. That's it. So we have to continue the expansion of our projects

2642
03:50:08,340 --> 03:50:15,440
to continue supplying water to our future generations because that's called survivability. And I just

2643
03:50:15,440 --> 03:50:20,740
want to leave you with my comments and my evaluation of the messaging that I'm hearing from the

2644
03:50:20,740 --> 03:50:25,480
people, and the people that are here in support of this, you know, I'm not, I'm not

2645
03:50:25,480 --> 03:50:30,260
gauging this, but I do want to hear from the rest of the two-minute people approximately

2646
03:50:30,260 --> 03:50:34,900
that we represent in our community. So we have to move on with our agenda. We have one more

2647
03:50:34,900 --> 03:50:41,460
item on the agenda today. I've been on hold for a while, Director. Okay, Director Eugen. Sure,

2648
03:50:41,640 --> 03:50:42,160
no problem.

2649
03:50:45,640 --> 03:50:52,840
It will be hard to follow up such an eloquent communication. I just wanted to

2650
03:50:52,840 --> 03:50:56,860
respond to a couple of things that speakers brought up.

2651
03:50:57,240 --> 03:51:03,540
Ms. Irvin of the Sierra Club suggested that we get a support, some updates on the storage

2652
03:51:03,540 --> 03:51:09,800
projects, which I think is a great idea. I would really look forward to doing that. I certainly

2653
03:51:09,800 --> 03:51:13,820
am not opposed to storage projects. I think it's an important part of our water portfolio.

2654
03:51:14,180 --> 03:51:20,200
And I would love to get more information. And then this is just an offer to those folks

2655
03:51:20,200 --> 03:51:29,360
from the unions today that spoke, and particularly Mr. Will Smith brought up the issue of trying

2656
03:51:29,360 --> 03:51:37,000
to deliver these union jobs sooner rather than later, and I certainly am supportive of

2657
03:51:37,000 --> 03:51:42,720
labor and want to make sure that our projects do move forward and provide opportunities for

2658
03:51:42,720 --> 03:51:49,900
people to work. I do think that Pacheco is going to be a project that's further out in the

2659
03:51:49,900 --> 03:51:56,820
And there's important projects that we could focus on right now, particularly in the areas of recycled water and water storage.

2660
03:51:57,340 --> 03:52:04,420
So I'd love to have further conversations with the unions to strategize how we can make sure that things happen quickly.

2661
03:52:04,860 --> 03:52:13,820
And then I just would like to thank we did hear from a lot of people, but we heard from two people today who came here and spoke to us in person.

2662
03:52:13,820 --> 03:52:17,920
I know that requires a lot of effort and energy and I just would like to thank you for that.

2663
03:52:22,460 --> 03:52:24,100
May I speak, Vice Chair?

2664
03:52:25,000 --> 03:52:25,460
I'm sorry.

2665
03:52:26,900 --> 03:52:28,240
If you're next.

2666
03:52:28,900 --> 03:52:29,100
Yes.

2667
03:52:29,260 --> 03:52:29,560
Go ahead.

2668
03:52:29,880 --> 03:52:30,960
Thank you, Vice Chair.

2669
03:52:31,700 --> 03:52:33,840
Yeah, I too want to respond to the Union speakers.

2670
03:52:34,540 --> 03:52:37,700
You know, as full disclosure, I'm from a Union family.

2671
03:52:37,860 --> 03:52:41,040
My sister was literally one of the founders of Justice for janitors.

2672
03:52:41,940 --> 03:52:48,120
And if there's anyone in this room who believes in good jobs for low income people,

2673
03:52:48,120 --> 03:52:55,260
It's me, my sister spent three decades representing women of color, most of whom don't speak English.

2674
03:52:56,580 --> 03:53:02,860
Well, some in the labor union did not want the janitor's joining because it was going to drag down the labor movement.

2675
03:53:03,180 --> 03:53:07,000
But she persevered and justice for janitors is now a thing.

2676
03:53:07,780 --> 03:53:09,300
So, I believe in jobs.

2677
03:53:09,300 --> 03:53:17,940
But there's some job, but as my colleague said, jobs actually need to exist to want them.

2678
03:53:18,420 --> 03:53:31,500
And the possibility of the job creation of this project is, I don't get why that's prioritized over the certainty of job creation from lower hanging fruit.

2679
03:53:31,900 --> 03:53:33,860
That is, I love how someone said shovel already.

2680
03:53:33,860 --> 03:53:39,300
Yeah, Stormwater Capture is shovel ready, but we could get jobs out there immediately.

2681
03:53:40,160 --> 03:53:46,620
The price tag of this project, and its current price tag, is the equivalent of giving $5,000.

2682
03:53:47,900 --> 03:53:51,100
It caught $5,000 to each resident of Santa Clara County.

2683
03:53:51,720 --> 03:53:59,100
That's including that's valuing mitigations of $3 billion and putting in modest $1 billion

2684
03:53:59,100 --> 03:54:00,200
into operations.

2685
03:54:00,200 --> 03:54:05,560
So, at the price tag I cited, we are asking each residence, and I'm not even talking about household.

2686
03:54:05,860 --> 03:54:14,020
Each resident $5,000, which is equal to a typical residence, would then be paying 15 to 20,000 dollars for this damn.

2687
03:54:15,520 --> 03:54:23,720
And it will, I think, as one of the eloquent public speakers said, it is likely to drive more people into a state of being unhoused.

2688
03:54:24,260 --> 03:54:25,600
So, how do we get jobs?

2689
03:54:26,220 --> 03:54:27,820
How do we create jobs?

2690
03:54:27,820 --> 03:54:38,280
Well, what I had asked for in this hearing was not a question of Pacheco or nothing, and I know that some of my colleagues shared this opinion.

2691
03:54:38,880 --> 03:54:40,900
This should have been Pacheco or nothing.

2692
03:54:41,720 --> 03:54:43,800
It should have been, do we do Pacheco?

2693
03:54:44,300 --> 03:54:51,760
Or do we do a project that does not have to, you know, valuable and worthy constituents,

2694
03:54:51,760 --> 03:54:59,540
So we're going to stop us, including the Amma Mutton tribe, and the Sierra Club, it's maybe we could have a project.

2695
03:55:00,000 --> 03:55:13,960
That has a price tag less than in the billions of dollars. You know, that could happen sooner. That doesn't require all these regulatory approvals, like agreement from Fish and Wildlife, that we could do things much sooner to create jobs.

2696
03:55:13,960 --> 03:55:42,780
And I too invite, I'm sorry, I too invite the union leaders to come and speak with us about good safe jobs because last point of all the jobs union jobs in our country and jobs in general construction jobs in the country creation of dams is listed in the top three of most dangerous jobs thousands of people have died in the construction of dams.

2697
03:55:42,780 --> 03:55:49,780
That is not the case for the construction of water treatment plants, you know, upgrading

2698
03:55:49,780 --> 03:55:54,700
pipe systems, plumbing systems, and storm water capture.

2699
03:55:55,940 --> 03:55:57,280
I don't want workers to die.

2700
03:55:57,480 --> 03:56:00,580
I mean, let's do something sustainable and safe.

2701
03:56:00,860 --> 03:56:01,620
Thank you.

2702
03:56:03,700 --> 03:56:07,780
Okay, so we're going to adjourn to co-session and we're going to close this meeting.

2703
03:56:07,820 --> 03:56:09,340
Thank you all for attending this meeting.

2704
03:56:09,340 --> 03:56:16,780
We have an item 3.1, conference with legal counsel existing litigation presumed to cover

2705
03:56:16,780 --> 03:56:24,780
my code section 54956.9D1, subject to take a damn project coalition for Santa Clara

2706
03:56:24,780 --> 03:56:25,200
Bell.

2707
03:56:26,880 --> 03:56:32,060
So we'll come back and re-convene after that post-section,

2708
03:57:35,500 --> 03:57:37,640
board meeting from the close session.

2709
03:57:38,740 --> 03:57:43,600
legal counsel, do we have any, I think, to report out from the closed session?

2710
03:57:43,880 --> 03:57:47,980
Thank you, Mr. Chair, Carlos Sareena, District Council, with respect to the closed

2711
03:57:47,980 --> 03:57:52,860
session item, the board met in closed session with all directors present and no reportable

2712
03:57:52,860 --> 03:57:53,520
action was taken.

2713
03:57:54,440 --> 03:57:54,920
Thank you.

2714
03:57:54,960 --> 03:57:55,920
Board members, any comments?

2715
03:57:56,840 --> 03:57:57,320
With that?

2716
03:57:57,480 --> 03:57:58,600
I adjourned.

2717
03:57:58,620 --> 03:58:00,240
Board of directors meeting to our next meeting.

2718
03:58:01,020 --> 03:58:02,800
I don't have my calendar in front of me for that so.