1
00:00:03,470 --> 00:00:09,790
Okay, we'll call the meeting in the water. Good morning. Good afternoon. Roll call, please.

2
00:00:11,390 --> 00:00:17,330
Director Shua, here. Director Keegan. Here. Director Creman.

3
00:00:18,090 --> 00:00:25,670
Here. Director Lizaid. Here. Director Santos. Director Varella. Here.

4
00:00:26,050 --> 00:00:29,430
Chair, Mr. Mara. All right. We have all members present. Great.

5
00:00:30,750 --> 00:00:34,150
Thank you, Madam Clerk, we'll move right along to the Pleasure of Allegiance, Director of

6
00:00:34,150 --> 00:00:35,470
Aurella, would you please lead us?

7
00:00:36,790 --> 00:00:38,110
Be an honor, thank you, sir.

8
00:00:39,650 --> 00:00:47,090
I pledge allegiance to the flag of the United States of America and to the Republic, of

9
00:00:47,090 --> 00:00:52,910
which is standing one nation under guard of the guard, the indivisible, visible, with liberty

10
00:00:52,910 --> 00:00:54,470
and justice for us.

11
00:00:58,470 --> 00:01:07,810
Thank you, Director Verella. We'll move right along to time open for public comment on any item that's not on the agenda today.

12
00:01:08,190 --> 00:01:13,970
So now's the time that the public is welcome to address us on any issue that is not on our agenda today.

13
00:01:14,650 --> 00:01:17,410
Do we have any any requests?

14
00:01:17,790 --> 00:01:23,110
Thank you, Mr. Chair. I have one member of the public who has raised his hand, Roland L.

15
00:01:24,450 --> 00:01:25,870
Roland L. Good afternoon.

16
00:01:29,380 --> 00:01:33,280
Good afternoon Mr. Chair, I'm both members.

17
00:01:33,600 --> 00:01:36,100
How much time do I have here is the two-three minutes?

18
00:01:36,500 --> 00:01:37,440
Three minutes, there we go.

19
00:01:37,640 --> 00:01:38,640
Three minutes for several minutes.

20
00:01:39,420 --> 00:01:44,900
So, what I'd like to do is to follow up on the comments I made yesterday at Council.

21
00:01:45,500 --> 00:01:45,740
Is that?

22
00:01:46,500 --> 00:01:48,900
I don't know how long you people have been here,

23
00:01:49,320 --> 00:01:52,240
but I've been through this before with what's going on in the weekend.

24
00:01:52,420 --> 00:01:54,680
It's been back in 1986, okay?

25
00:01:54,680 --> 00:02:01,460
It took the, you drain the dam, you took it down, and then we have the tree, you're drought.

26
00:02:02,600 --> 00:02:08,360
Rationing was just up to the brutal, our rape went through the roof.

27
00:02:09,640 --> 00:02:11,860
The water company said, you went bankrupt.

28
00:02:12,740 --> 00:02:15,200
The two marinas, I don't know whether it came back.

29
00:02:15,340 --> 00:02:17,840
The two marinas also went bankrupt.

30
00:02:17,840 --> 00:02:27,180
And you know, I remember seeing the, you know, the justice of the doctor lying on the side of the late, you know, 25 years ago.

31
00:02:27,800 --> 00:02:33,940
But the reason I'm addressing you is, why are you doing what you are doing?

32
00:02:34,980 --> 00:02:43,100
I've been for the last five years, I've been up multiple community meetings, I've been contacting your staff and telling you there's a solution out there.

33
00:02:43,100 --> 00:02:46,460
There's an Italian company called Trevi.

34
00:02:47,240 --> 00:02:51,720
The website is drv.spa.com.

35
00:02:52,420 --> 00:02:54,120
We'll do this for business.

36
00:02:55,140 --> 00:02:59,100
There is the material dam in Iraq.

37
00:03:00,100 --> 00:03:04,480
They are fixing, you know, trailers, who's leaking dams in China.

38
00:03:05,660 --> 00:03:06,680
They have the technology.

39
00:03:06,680 --> 00:03:14,480
right now, the fixing the Herbert Hoover jetty, I think, is in a Jacksonville.

40
00:03:14,940 --> 00:03:19,640
They can do this for a fraction of the cost of what you're proposing here.

41
00:03:20,560 --> 00:03:30,980
It'll be a permanent fix and we will get our reservoir back probably within 818 to maybe 24, 24, 24 months.

42
00:03:30,980 --> 00:03:37,460
So, my question to you is, if you don't know who these people are, go to the U.S. Army

43
00:03:37,460 --> 00:03:42,660
Corps of Engineers, whoever will this multiple contracts to these people, all over the world,

44
00:03:43,680 --> 00:03:50,460
and ask them if they think that it will be reasonable for you to reach out to these people

45
00:03:50,460 --> 00:04:00,960
and come up with a solution that gonna get us out of this mess we are in right now at the

46
00:04:00,960 --> 00:04:04,280
Thank you. Thank you, sir.

47
00:04:09,150 --> 00:04:12,030
I have Mr. Chair. I have no other hands raised at this time.

48
00:04:12,690 --> 00:04:14,850
Okay. All right. Then we'll go to our agenda.

49
00:04:16,310 --> 00:04:20,310
I'd like staff to ask the Army Corps. I know they're involved in the project.

50
00:04:20,530 --> 00:04:22,490
They should be told us about this.

51
00:04:23,550 --> 00:04:27,850
To make an inquiry regarding Mr. Roland's suggestion.

52
00:04:28,750 --> 00:04:30,590
So we'll move right along to 2.1,

53
00:04:30,590 --> 00:04:34,090
for Technical Reservoir's Banschen Project, workshop topics.

54
00:04:35,450 --> 00:04:37,810
It's an informational item, we start with Chris.

55
00:04:39,960 --> 00:04:40,920
Thank you very much, madam.

56
00:04:41,140 --> 00:04:41,540
Good afternoon.

57
00:04:42,780 --> 00:04:45,940
I am here to present some information on the

58
00:04:45,940 --> 00:04:48,500
Technical Reservoir Extension Project that will hopefully

59
00:04:48,500 --> 00:04:51,380
help to board in its discussions upcoming

60
00:04:51,380 --> 00:04:52,840
for the wide range of processes,

61
00:04:53,100 --> 00:04:54,800
as well as the budgetary process of reporting.

62
00:04:55,440 --> 00:04:57,300
I will share my screen to get the presentation.

63
00:04:58,180 --> 00:04:59,980
And then although I will be giving the presentation,

64
00:05:03,540 --> 00:05:04,100
So,

65
00:05:08,540 --> 00:05:29,720
we'll be talking about the Chamber of Res Morse branching project today. So, these are policy decisions that the board should need to make in the upcoming months regarding the Chamber of Res Morse branching project. Where does the particular project fit into our overall water supply and ask for plan?

66
00:05:29,980 --> 00:05:38,980
As we move forward, are there three different triggers that the Board would like to then have us bring the project back to you for an update on.

67
00:05:39,960 --> 00:05:41,180
We do have our CIT process.

68
00:05:41,980 --> 00:05:42,740
We do our following.

69
00:05:43,360 --> 00:05:49,460
However, because this is a high profile project, there may be some additional points of discussion or, you know,

70
00:05:49,600 --> 00:05:51,880
basically as the project evolves a little bit more.

71
00:05:51,900 --> 00:05:56,600
You may want more frequent updates than our typically given the CIT process.

72
00:05:56,600 --> 00:06:03,340
So it was important to illuminate any of those and possibly set them up for the Y4 to

73
00:06:03,340 --> 00:06:08,000
S4 recording committee to review for actor football org and then what level of partnership

74
00:06:08,000 --> 00:06:11,800
participation should be assumed for the financial planning purposes?

75
00:06:12,180 --> 00:06:15,740
On my next slide I believe a couple of slides down the road will show if you want to write scenario

76
00:06:15,740 --> 00:06:21,320
that we currently have for the face case for FY22 which does have an assumption of 20% partnership.

77
00:06:21,320 --> 00:06:27,620
And that was said in FY 19, but of course, I'm going to work in liberating on the budget process this year.

78
00:06:27,980 --> 00:06:34,260
It's the board's purview at the policy level to decide what target we should have for partnering and moving forward.

79
00:06:35,900 --> 00:06:41,460
Just from a perspective, the large board's infrastructure program where we received our prop one grant.

80
00:06:42,120 --> 00:06:47,640
The benefits for the project that we very much wear up and then enhance the environmental habitat for strategies,

81
00:06:47,640 --> 00:06:53,560
in enhanced water supply, of course emergency water supply. In increasing the reliability of the

82
00:06:53,560 --> 00:06:57,620
Delta, resulting in the second dose of water supply issues of water quality, and then of course

83
00:06:57,620 --> 00:07:02,820
we do have a reduction of blood potential for downstream communities, disadvantaged communities, specifically.

84
00:07:04,840 --> 00:07:12,700
I believe the horn saw a boost, I believe it was January 12th, we kind of cost history estimate for

85
00:07:12,700 --> 00:07:15,700
cost as a history for the project where we started 2017.

86
00:07:16,440 --> 00:07:20,340
I've got it to here in 2020, so I won't spend a lot of time on it, but just know that the

87
00:07:20,340 --> 00:07:26,160
2.5 billion dollar estimate that's currently projected is what we have in our C.I.P.

88
00:07:26,300 --> 00:07:27,640
and by just moving forward.

89
00:07:29,460 --> 00:07:33,020
And then the main discussion is to help talk about water rates.

90
00:07:33,400 --> 00:07:40,400
Right now, as I mentioned, the base case is at 9.6% for a zone that we need to and I,

91
00:07:40,400 --> 00:07:42,780
That's projecting for the next eight years.

92
00:07:43,080 --> 00:07:45,040
We've got 20% partnership participation.

93
00:07:45,840 --> 00:07:47,820
We are affecting on getting a wifio loan.

94
00:07:47,960 --> 00:07:50,420
We have been invited, I believe, just yesterday,

95
00:07:51,700 --> 00:07:56,520
with the EGA release, the press release saying that we had officially been received an

96
00:07:56,520 --> 00:07:57,540
invitation to participate.

97
00:07:58,580 --> 00:08:02,680
And we were originally waitlisted, but now we have been officially invited to apply for wifio.

98
00:08:03,180 --> 00:08:04,300
So we are pursuing with it.

99
00:08:04,400 --> 00:08:09,400
As you can see, whether or not we received wifio does have a substantial impact on the

100
00:08:09,400 --> 00:08:15,960
to water rates associated with the project, we listed a vast kind of, you can see a

101
00:08:15,960 --> 00:08:20,040
curve of different partnership, participation levels and how they might impact the

102
00:08:20,040 --> 00:08:23,560
water rates. The two and a half percent is kind of the minimal participation

103
00:08:23,560 --> 00:08:26,840
from San Bernardo County. They are actually able to increase their participation

104
00:08:26,840 --> 00:08:32,340
up to 10 percent, but the two and a half percent you can see that if we were not able

105
00:08:32,340 --> 00:08:37,000
to get any other partnerships, we would be at about 10.2 percent as opposed to the 9.6

106
00:08:37,000 --> 00:08:40,780
percent this year. Or if with you didn't come through, we'd be able to let them percent.

107
00:08:41,280 --> 00:08:45,680
That's kind of the worst-case scenario range. Best-case scenario in terms of partnership

108
00:08:45,680 --> 00:08:51,640
participation, we've model 30 and a half percent. That's one scenario. We would facilitate

109
00:08:51,640 --> 00:08:57,580
transfers through the San Luis Reservoir. We believe that in a dry year, we could reliably

110
00:08:57,580 --> 00:09:01,800
transfer about 50,000 acre feet, which is where that number comes from, and we'll share a little bit

111
00:09:01,800 --> 00:09:06,500
more in the upcoming slides. But, you know, theoretically, you can increase that partnership level

112
00:09:06,500 --> 00:09:09,860
even more, but it would potentially reduce value

113
00:09:09,860 --> 00:09:11,160
water share of that water.

114
00:09:11,920 --> 00:09:13,800
And then, of course, there is the base case scenario,

115
00:09:14,040 --> 00:09:16,620
which they aren't covered yesterday for rate setting

116
00:09:16,620 --> 00:09:18,640
or where there is, or if you can not base case,

117
00:09:19,520 --> 00:09:23,660
but non-protaco case for the rate of the state 1,5%.

118
00:09:26,120 --> 00:09:28,580
In terms of funding, heavily, the board is also familiar.

119
00:09:28,820 --> 00:09:30,580
And you are looking for a way to be alone

120
00:09:30,580 --> 00:09:33,500
in about 45%, 49% of the product, which is the maximum.

121
00:09:34,060 --> 00:09:36,680
We'll be doing long-term bonds for not 30% roughly.

122
00:09:36,680 --> 00:09:38,520
and then we do have all this of the grant.

123
00:09:39,380 --> 00:09:43,540
In the partnership scenario that will be outlined in today's 50,000 acre feet,

124
00:09:43,860 --> 00:09:48,720
that would equate to about $900,000 and $10,000,000, which is about 36 percent

125
00:09:48,720 --> 00:09:50,240
of the overall project cost.

126
00:09:53,340 --> 00:09:55,580
In terms of different partnership structures and options,

127
00:09:56,200 --> 00:09:57,780
we've got four that we've identified.

128
00:09:58,620 --> 00:09:59,860
There is the option where we basically...

129
00:10:00,000 --> 00:10:11,840
I think that's a simple ownership of the facility, and then we form a purpose to actually sell the water to the correctal rights. There is a JPA structure, which I can believe the board's money with from the law's precarious sites, et cetera.

130
00:10:12,640 --> 00:10:27,800
Partnerships with private entities, those key pretty tight, and you have been looking into potential key three scenarios, although it looks as though the greatest potential for a key three will be through finance and record, we are looking for other entities to possibly partner and move forward.

131
00:10:27,800 --> 00:10:30,140
as well as partnerships with federal or state agencies.

132
00:10:30,980 --> 00:10:33,680
DWR is actually currently a partner in the project

133
00:10:33,680 --> 00:10:37,600
through the WISP grant, but there is also the USB organization.

134
00:10:38,080 --> 00:10:39,740
We have had discussions with them.

135
00:10:39,940 --> 00:10:43,900
In a similar scenario that we looked at our JPEO company plan,

136
00:10:44,140 --> 00:10:48,740
where they may actually own and instruct the portion of the project,

137
00:10:48,760 --> 00:10:50,860
and then at least that back to us over time,

138
00:10:50,860 --> 00:10:53,300
kind of in a rent to own scenario.

139
00:10:55,750 --> 00:11:02,330
So, the example we're talking about is 50,000 acre feet, basically, as you look at the difference,

140
00:11:03,090 --> 00:11:08,050
in stradation of this reservoir picture, the 35,000 acre feet is dedicated storage for our

141
00:11:08,050 --> 00:11:09,110
list of benefits.

142
00:11:09,710 --> 00:11:12,990
That's the number that we've been negotiating back and forth with fish and wildlife,

143
00:11:12,990 --> 00:11:16,190
California Department of Fish and Wildlife, and the Department of Water Resources,

144
00:11:16,910 --> 00:11:19,110
for the better part of the, probably a year now.

145
00:11:19,390 --> 00:11:24,210
We found a got to a number that we could talk with was originally set at 55,000 acre feet

146
00:11:24,210 --> 00:11:28,910
But we were able to, through our negotiation, get a down to about 35,000 acre fee.

147
00:11:29,310 --> 00:11:33,530
That is why we do feel comfortable now that we would have about 50,000 acre fee available.

148
00:11:33,890 --> 00:11:39,390
Our partnership is one of the scenario, including 55,000 acre fee for San Bernardo and San Bernardo,

149
00:11:39,510 --> 00:11:41,410
to use basically for our benefit.

150
00:11:44,540 --> 00:11:48,280
In this scenario, when we're talking about transfers through the San Luis Resport,

151
00:11:48,900 --> 00:11:54,280
we have about 50,000 acre fee that we could see right for the transfer, even in dry years,

152
00:11:54,280 --> 00:11:58,960
are out of station through the S, state water project, or the Central Valley project,

153
00:11:59,160 --> 00:12:03,600
though obviously those descendants were as well. In wet years, we would take water out of San

154
00:12:03,600 --> 00:12:07,280
Lois, put it into take a reservoir, and then in dry years, it would be a virtual

155
00:12:07,280 --> 00:12:11,340
transfer so that's when we send the cash line back to San Lois. We wouldn't actually send water

156
00:12:11,340 --> 00:12:15,700
back to San Lois, but we would be able to facilitate transfers through San Lois to other

157
00:12:15,700 --> 00:12:20,940
partners. This is just one scenario, depending on the partner that we're engaged with,

158
00:12:20,940 --> 00:12:24,340
There are other transverse scenarios or other ways to obtain water that would have been

159
00:12:24,340 --> 00:12:30,280
looked at deliveries to common customers, possibly sending water down the south, you know,

160
00:12:30,320 --> 00:12:32,500
to pass the current through semi-traffic.

161
00:12:32,640 --> 00:12:37,720
A lot of different scenarios, but this one is easily as digestible you can see, it's a pretty

162
00:12:37,720 --> 00:12:39,560
big chunk of water at 50,000 acre feet.

163
00:12:39,820 --> 00:12:42,740
So this is just one of the things that we've been kind of looking at.

164
00:12:43,240 --> 00:12:46,360
Some of the feedback that we've gotten when we presented the water storage, it's a laboratory

165
00:12:46,360 --> 00:12:50,640
committee, but even though this was one scenario, we did want to do any of the

166
00:12:50,640 --> 00:12:53,160
specialized partner pitches, which we are doing.

167
00:12:53,500 --> 00:12:58,200
We're currently actually looking into getting a sales and marketing firm on board that

168
00:12:58,200 --> 00:13:02,940
would specialize in this type of pitch, so as we go out to potential partners, we want to

169
00:13:02,940 --> 00:13:08,000
customize our pitch to each of the individual organizations and FTEs to make sure they're

170
00:13:08,000 --> 00:13:11,940
getting the maximum benefit from project and they see the benefit in it for them.

171
00:13:13,960 --> 00:13:20,840
Based on this scenario, you're looking at costs. These are unadvertised, capital, construction costs.

172
00:13:20,840 --> 00:13:24,420
This is not necessarily an investment, but it's an operation fast as well.

173
00:13:24,700 --> 00:13:28,400
This is just once an area, as we said, if you look at what it's in it for the partners,

174
00:13:28,640 --> 00:13:35,040
the cost rate, or put at 50,000 acre feet, is about 18,800 per acre foot.

175
00:13:35,060 --> 00:13:39,820
We'll compare that in a future slide, some of the other projects out there, of course, the

176
00:13:39,820 --> 00:13:40,840
advertised cost.

177
00:13:40,960 --> 00:13:45,340
I believe that as we get out, of course, 233 with the debt service as well as we don't

178
00:13:45,340 --> 00:13:45,780
have.

179
00:13:45,900 --> 00:13:49,480
I think for about 10% share of quates to about $13 million.

180
00:13:49,480 --> 00:13:53,680
I think you have Darren on the line to help explain those numbers a little bit more

181
00:13:53,680 --> 00:13:55,080
depending on what must be going back.

182
00:13:55,360 --> 00:13:57,980
That's just kind of, like I said, one scenario brought over to you.

183
00:14:01,160 --> 00:14:03,780
So we have looked at other different types of projects.

184
00:14:04,800 --> 00:14:10,120
What we have here is just the cost for either feet of a non-advertised capital cost.

185
00:14:10,460 --> 00:14:13,620
You can see that the tickle reservoir expansion is the highest.

186
00:14:14,220 --> 00:14:19,060
However, that is because each of the different projects has their own pros and cons.

187
00:14:19,060 --> 00:14:22,740
For groundwater banking, for example, I believe the board is familiar with our scientific

188
00:14:22,740 --> 00:14:23,540
public bank.

189
00:14:23,880 --> 00:14:26,220
There are certain take limitations.

190
00:14:27,060 --> 00:14:33,640
We do in critical dry years have some, how shall we say, difficult at times, getting

191
00:14:33,640 --> 00:14:34,580
our water back.

192
00:14:35,160 --> 00:14:39,520
So from that water, one of you, obviously, particularly in county, is about fake benefits

193
00:14:39,520 --> 00:14:40,460
to us.

194
00:14:41,020 --> 00:14:44,200
So that increase cost may be worth it.

195
00:14:44,260 --> 00:14:48,220
For some of our other partners, we're going to look at what makes sense for them.

196
00:14:48,220 --> 00:14:52,620
How can the flexibility of our water system benefit them as well?

197
00:14:52,880 --> 00:14:58,380
And so these costs are just, you know, kind of so that you can judge as we look at our overall water supply portfolio.

198
00:14:59,180 --> 00:14:59,880
How do you like it?

199
00:15:00,000 --> 00:15:02,880
We look together our supply of moving forward.

200
00:15:06,020 --> 00:15:32,300
Prior to schedule, this is the schedule we're currently on, release of our environmental documentation draft this year, finalized about 2023 so that we can get our permits throughout 2024 and go to construction in 2025. This is a very aggressive schedule, permitting is always the lot of hard these days. I think everyone is familiar with the permitting process to Anderson is undergoing. So, you know, the time to actually get out to construction could slip a little bit.

201
00:15:32,460 --> 00:15:34,300
And it does not jeopardize our whistle funding.

202
00:15:34,960 --> 00:15:38,300
And in terms of increase in cost due to construction delay,

203
00:15:38,640 --> 00:15:41,800
we believe that our number of $2.5 billion, currently

204
00:15:41,800 --> 00:15:43,520
had enough contingency presence,

205
00:15:45,320 --> 00:15:47,560
that even the significant delay to the start of construction,

206
00:15:48,100 --> 00:15:50,720
wouldn't necessarily increase the overall project cost.

207
00:15:53,100 --> 00:15:54,540
Just to show you this slide again after,

208
00:15:55,120 --> 00:15:57,500
you've had a chance to look at some of the partnerships scenarios.

209
00:15:59,200 --> 00:16:01,960
We can come back to this as we have our discussions,

210
00:16:01,960 --> 00:16:04,320
But this is just once again the race.

211
00:16:07,880 --> 00:16:11,080
In terms of what can the Chaco do or what could the Chaco do?

212
00:16:11,420 --> 00:16:14,080
It definitely increases our operational flexibility.

213
00:16:14,620 --> 00:16:16,840
It's local in storage capacity.

214
00:16:17,580 --> 00:16:21,000
It would be by far the largest reservoir that the value water has.

215
00:16:21,340 --> 00:16:25,060
All 10 of our existing reservoirs to fit within the footprint of the Chaco.

216
00:16:25,920 --> 00:16:31,280
It would give us a place to put important water contract supplies when we have extra supply.

217
00:16:31,280 --> 00:16:38,660
We won't lose that water, we won't need to sell it on the spot market when the market is advantageous to do so.

218
00:16:38,800 --> 00:16:41,060
And then we can use it during a drought now.

219
00:16:41,500 --> 00:16:47,920
Of course, the reservoir is a renewable source of water, but it doesn't need to have water to actually put in it.

220
00:16:48,180 --> 00:16:57,840
So if we were drawing upon it for a straight 1-2 drying years, there probably wouldn't be a lot of water left for a third or fourth year depending on how long the drought is.

221
00:16:57,840 --> 00:17:01,600
It also, of course, provides you around flow to the free downstream of the reservoir.

222
00:17:01,820 --> 00:17:05,840
It's about the blood production that's been talked about, you know, environmentally speaking,

223
00:17:06,260 --> 00:17:10,800
that is actually the biggest benefit that was awarded through the whistle portion of the grant.

224
00:17:11,260 --> 00:17:12,740
So it's a big loss.

225
00:17:14,000 --> 00:17:17,220
What doesn't the chamber do, or what won't it do if it is implemented?

226
00:17:18,080 --> 00:17:22,660
We're not going to have a significant reduction in water shortage severity during prolonged drought.

227
00:17:22,760 --> 00:17:26,960
So as I said, on the coronavirus drought, it'll definitely be there for us to draw from,

228
00:17:26,960 --> 00:17:33,960
But as you get into the out years if the droughts are extended in duration of take will obviously be dry at that point

229
00:17:33,960 --> 00:17:39,560
So there is no long term drought supply and then there's not really any new water supply

230
00:17:39,560 --> 00:17:42,980
We're going to take the RCP or C.R. Project

231
00:17:43,960 --> 00:17:46,740
Allocations when we have additional allocations and putting it into

232
00:17:47,640 --> 00:17:52,460
The decor is more so it's already our water so we're at that's a place that we can park it and not lose it

233
00:17:52,460 --> 00:17:55,300
And we will have some water from the local watershed

234
00:17:55,300 --> 00:17:59,920
But it's kind of a low yield watershed, so we're only looking, and we're still fine

235
00:17:59,920 --> 00:18:03,700
between the modeling, but the yield and the watershed is not very much probably six to

236
00:18:03,700 --> 00:18:06,640
nine thousand acre feet maximum, and that's in the left here.

237
00:18:07,060 --> 00:18:10,140
Paul, Paul, may I, through the chair, may I ask you a question about that?

238
00:18:10,900 --> 00:18:18,060
But as of what, for the recycling plant, isn't that just 5,000 itself, the graffiti here?

239
00:18:23,940 --> 00:18:29,300
The expert at a pure fine project is in the neighborhood of 10,000 a

240
00:18:29,300 --> 00:18:33,360
computer year for the whole project or just tell about so.

241
00:18:33,540 --> 00:18:37,220
Just tell about so I think I'll end up being 9,000 by the time it's all

242
00:18:37,220 --> 00:18:37,920
said and done.

243
00:18:38,080 --> 00:18:38,360
A perfectly.

244
00:18:39,400 --> 00:18:39,580
Yeah.

245
00:18:39,580 --> 00:18:40,020
Okay.

246
00:18:40,180 --> 00:18:40,760
Thank you.

247
00:18:44,710 --> 00:18:47,490
And so just some of the things with making cool into the

248
00:18:47,930 --> 00:18:52,850
Obviously, you can take what is one of several water storage infrastructure projects or moving forward.

249
00:18:53,370 --> 00:18:56,710
The board is aware of LVP insights and has participation goals there.

250
00:18:57,190 --> 00:18:59,670
So there are a lot of projects out there on the panel.

251
00:18:59,790 --> 00:19:03,230
We do a lot of technical partners to kind of look at all of the different options.

252
00:19:03,290 --> 00:19:04,950
You know, kind of turning over all the different rocks.

253
00:19:05,130 --> 00:19:08,850
So we are one of several, you know, relatively kind of marketplace at this point.

254
00:19:09,130 --> 00:19:16,970
And I mentioned to you, I have a nice capital risk cost of restboard storage is about ATA for our partners in the scenario that we look at.

255
00:19:16,970 --> 00:19:44,720
But generally speaking, some of them will be 80,000 in $20,000 in April, but and then of course the end all increase in the North County W2 and the high groundwater charge ranges 8.5 is actually without the Jacob, I'll be right along with 11% if we had minimal partnership participation did not proceed with the other plan, not believe we're going to end with a refresher on some of the board policy discussions that we want to have.

256
00:19:45,040 --> 00:19:48,280
You know, it doesn't make sense to continue doing food, take a rest of our expansion project,

257
00:19:48,440 --> 00:19:49,960
you know, the water supply must be passed, and that's the plan.

258
00:19:50,820 --> 00:19:55,740
One of the three tools and triggers is we would like us to come back and then what level of partnership

259
00:19:56,500 --> 00:19:58,980
participation should we use from a financial planning perspective.

260
00:19:59,740 --> 00:19:59,980
And that's all.

261
00:20:08,900 --> 00:20:14,140
Thank you, Chris.

262
00:20:25,770 --> 00:20:30,670
We done with, with, with, with, with, staff presentation.

263
00:20:31,810 --> 00:20:37,990
Correct. And all the questions. Okay, all right. We can let roll in and take this question, and then,

264
00:20:37,990 --> 00:20:41,190
will get with the board. Roll it.

265
00:20:44,490 --> 00:20:47,970
Thank you Mr. Trey and this is not a question, this is a comment.

266
00:20:49,850 --> 00:20:55,110
Okay. I mean, you see, oh, you got 30 quotes, I guess. Okay.

267
00:20:56,010 --> 00:21:02,670
Yes, thank you. So you have to be reasonable here. You can't just come up with this thing up to $200

268
00:21:02,670 --> 00:21:10,770
billion dollars. And you know, and you look at the 20k to take a full of storage. I mean,

269
00:21:10,770 --> 00:21:18,050
the numbers just don't matter if it doesn't pass out. It's a wrong project. So my recommendation

270
00:21:18,050 --> 00:21:23,630
to you, if you want to go to the private sector, don't go wrong telling them, oh yeah, you know,

271
00:21:23,770 --> 00:21:30,750
yeah, they are the iron, you got this exact billions of dollars. Have them look. This is what we want to

272
00:21:31,410 --> 00:21:37,670
what is your best idea? You basically give them a car to blast. And the best arrangement

273
00:21:37,670 --> 00:21:43,610
that you can possibly have, both from your point of view, and our point of view, which is the

274
00:21:43,610 --> 00:21:49,610
people who paying for all that at the end of the day, is you basically give them a confession.

275
00:21:50,010 --> 00:21:57,930
It's either 30, 50, or 99 years or whatever. And basically, here is the land, and you go around

276
00:21:57,930 --> 00:22:06,090
willing whatever it is that you want to do, to build it, you pay for it, and you maintain

277
00:22:06,090 --> 00:22:12,130
it, and we will pay you back for whatever service it is that you provide and do it.

278
00:22:12,130 --> 00:22:15,030
That's the best arrangement you can for today go for.

279
00:22:15,190 --> 00:22:19,930
God go to these people with whatever project it is that you're confident to come up with.

280
00:22:20,230 --> 00:22:23,490
That's my two sets. Thank you. Thank you, Roland. I just

281
00:22:23,490 --> 00:22:25,610
Roland's talking about a P3.

282
00:22:27,750 --> 00:22:29,670
Okay, questions then.

283
00:22:33,340 --> 00:22:33,800
Start.

284
00:22:34,940 --> 00:22:36,260
Start to show it.

285
00:22:36,260 --> 00:22:37,240
Thank you chair.

286
00:22:38,400 --> 00:22:45,900
I like us to have to explain this partnership options a little bit more.

287
00:22:46,980 --> 00:22:50,900
I've particularly the ones with partnership with private entities.

288
00:22:50,980 --> 00:22:52,660
I think that's what our.

289
00:22:58,320 --> 00:23:06,180
So, in the, on the slide, says form partnership with private entities to invest in capacity and sell their benefits to others.

290
00:23:06,680 --> 00:23:10,220
So I'm not sure how does this work like to understand it better.

291
00:23:10,660 --> 00:23:14,680
And also that partnership with federal or state agencies.

292
00:23:14,680 --> 00:23:24,920
I assume this is not other water management agency, this is the federal government and

293
00:23:24,920 --> 00:23:30,860
stake of the government, so how does that work with the partnership that we're thinking about?

294
00:23:35,750 --> 00:23:36,870
Sorry, it's the long mute.

295
00:23:37,550 --> 00:23:41,030
So let me go to an easy one of the partnerships with federal or state agencies.

296
00:23:41,330 --> 00:23:46,570
As I mentioned, DWR through the state of California has contributed to the product already for

297
00:23:46,570 --> 00:23:52,390
emergency supply benefit. What we can go to you is a full benefit that's basically pre-payed

298
00:23:52,390 --> 00:23:59,430
for in the times of emergency to stay control on that resource. It can be deployed most likely

299
00:23:59,430 --> 00:24:03,250
within our own county because that's where it's the easiest to get. And as that benefit is

300
00:24:03,250 --> 00:24:09,170
drawn upon, eventually we'll run after it's basically pre-payed only for a certain amount. They can

301
00:24:09,170 --> 00:24:10,910
and then read out and pay for more.

302
00:24:11,370 --> 00:24:15,130
In theory, outside of the was a program,

303
00:24:15,450 --> 00:24:18,630
we could approach DWR about whether they'd like

304
00:24:18,630 --> 00:24:21,270
a larger share of that emergency supply benefit.

305
00:24:21,530 --> 00:24:24,090
I believe the governor is very keen on crafting

306
00:24:24,090 --> 00:24:27,350
an emergency supply net based on the results

307
00:24:27,350 --> 00:24:28,870
of the last draft moving forward.

308
00:24:29,150 --> 00:24:31,070
So they are looking for emergency water supply.

309
00:24:31,570 --> 00:24:35,050
The cash with that is if we are releasing portions

310
00:24:35,050 --> 00:24:38,490
or selling portions of our emergency supply

311
00:24:38,490 --> 00:24:45,330
to the state, it wouldn't be available for operation, however, if we're saying that we're gonna

312
00:24:45,330 --> 00:24:51,270
let you pre-pay for, let's say, 20,000 acre feet a year, that 20,000 acre feet is dedicated,

313
00:24:51,410 --> 00:24:55,630
it must be in the reservoir, it cannot be taken out, so we can't transfer water in and out.

314
00:24:56,410 --> 00:24:59,810
From the federal perspective, I think I briefly talked about,

315
00:25:00,000 --> 00:25:07,220
U.S. B.R. The fact that they do own our potato pumping fund right now, and we are actually paying for it over time.

316
00:25:07,560 --> 00:25:13,960
A similar scenario could be thought about where we would, as part of the project, be constructing a pump station and conduit.

317
00:25:14,560 --> 00:25:23,420
If we could make any agreement with the United States Bureau of Reformation, they could actually let that out for construction pay for it out front.

318
00:25:23,420 --> 00:25:27,280
and then through the normal mechanisms of repaint, and as we have, as we have with the

319
00:25:27,280 --> 00:25:31,640
shape of a public plan, we could theoretically then paint them back over time for that asset.

320
00:25:32,100 --> 00:25:36,320
That will be a portion of the projects, you know, equating to the cost of the consultation

321
00:25:36,320 --> 00:25:43,500
of the conduit. There is additional potential to actually sell them space in the reservoir or

322
00:25:43,500 --> 00:25:48,660
a dedicated portion of the reservoir. That does come with some challenges, there's some water rights,

323
00:25:48,660 --> 00:25:53,320
There is some obligation that currently doesn't exist for U.S.

324
00:25:53,340 --> 00:25:57,260
Bureau of the Federal Government in that area, but they may be wary to undertake.

325
00:25:57,980 --> 00:26:03,420
So the cleanest path for that kind of partnership at a federal level is through the consultation in conduit.

326
00:26:04,020 --> 00:26:11,240
In terms of partnerships with private entities, I think everyone is aware of what a P3 is at this point.

327
00:26:11,240 --> 00:26:18,120
We were approached initially, but I want to say, get eight to ten months ago about a financing

328
00:26:18,120 --> 00:26:23,820
P3 that had looked into the project and knew about the whistful order and how it was structured

329
00:26:23,820 --> 00:26:30,740
in some of the different restrictions that were in place in terms of private ownership, and they

330
00:26:30,740 --> 00:26:37,280
thought that really the best way to move forward is through a financing P3 portion, right?

331
00:26:37,280 --> 00:26:43,060
productivity finance. If we're getting with you, that doesn't really make sense for us, but we are

332
00:26:43,060 --> 00:26:48,560
talking to Joe Jacobson, who worked with us on our P3 for our Advanced Certification Center,

333
00:26:49,440 --> 00:26:56,100
initiative moved forward on what types of different P3s might be structured for, you know,

334
00:26:56,240 --> 00:27:04,080
design, operation maintenance, and of the actual press board movement forward. I believe we have not

335
00:27:04,080 --> 00:27:08,320
And then you saw a hitch right now, but there is at least one scenario where there is a Southern California

336
00:27:08,320 --> 00:27:15,420
Reservoir that was built by a private entity and is in their own partnership with a local public agency.

337
00:27:16,180 --> 00:27:23,800
Charlie may have additional information about that and she has talked to Jill and in terms of partnerships by a third party with the

338
00:27:23,800 --> 00:27:28,660
Cultural Rights, that is where we would basically, we would construct the Reservoir out front,

339
00:27:28,660 --> 00:27:40,640
Depending on when a partner wanted to come in and execute their agreement, they would be purchasing a certain amount of water for storage, right, in the in the in the rest work.

340
00:27:40,960 --> 00:27:48,140
So let's say that we had 130,000, 130,000 HP, 30 or 140,000 HP, 35,000 subside.

341
00:27:48,140 --> 00:27:54,660
What's left of that 85, 95,000 would be ours to do with what we wanted in conjunction with

342
00:27:54,660 --> 00:27:59,460
Tempening Academy, of course, and we could be ready to sell, okay, and come up with a agreement

343
00:27:59,460 --> 00:28:04,400
where we would say in certain types of years, we would have an available water supply,

344
00:28:04,540 --> 00:28:09,860
which you would basically contract to purchase. Almost like we do with the state and CBK,

345
00:28:10,180 --> 00:28:16,380
where we have an allocation every year that we've contracted for and depending on the water scenario

346
00:28:16,380 --> 00:28:22,200
conditions we receive a portion of that allocation. So those are some of the different contractal rights

347
00:28:22,200 --> 00:28:29,540
that would be necessary or could be structured. We are still looking into what types of agreements

348
00:28:29,540 --> 00:28:34,360
or partnerships are partners interested in or a potential partners interested in because of

349
00:28:34,360 --> 00:28:40,620
course we want to make the project as attractive as can be. We don't want to define ourselves to a

350
00:28:40,620 --> 00:28:45,180
very separate criteria which may just automatically eliminate some types of partnerships with

351
00:28:45,180 --> 00:28:50,160
because one of the open-minded ones comes to looking at it, but actually, this is a very

352
00:28:50,160 --> 00:28:50,920
wonderful book.

353
00:28:55,240 --> 00:29:00,040
Thank you, Chris, for that detailed explanation. Just one follow-up.

354
00:29:01,460 --> 00:29:10,140
So, this P3 type of partnership. So, when we say sell their benefits to others and their

355
00:29:10,140 --> 00:29:18,860
others can be us. So, through their finance and structure, they own certain volume of water

356
00:29:18,860 --> 00:29:22,000
and then we purchased water from them when we needed.

357
00:29:22,460 --> 00:29:23,040
Is that correct?

358
00:29:23,780 --> 00:29:28,660
We would sell that water back to us, or if we were not in need of it, you know, basically

359
00:29:28,660 --> 00:29:33,520
if we wanted to just have a portion of the allocation, they could then sell that water

360
00:29:33,520 --> 00:29:35,820
on the open market to a different party.

361
00:29:36,380 --> 00:29:39,600
Now, you know, it's a little bit difficult, because as the private constituency

362
00:29:39,600 --> 00:29:42,860
correct now, the water kind of flows one way close from San Luis,

363
00:29:43,080 --> 00:29:45,880
we could directly work from the rest of the work into our system.

364
00:29:45,880 --> 00:29:49,640
So if they were then going to sell that water to a different party,

365
00:29:50,600 --> 00:29:56,040
they might need some changes to the climate structure that is currently in place.

366
00:29:56,440 --> 00:29:59,840
Especially since I believe that the Jekyll Pandu...

367
00:30:27,220 --> 00:30:29,820
Okay. Thank you very much. Thank you very much. Thank you very much.

368
00:30:29,820 --> 00:30:36,160
when I first read this uh others I did not include us as part of the others so that's

369
00:30:36,160 --> 00:30:41,380
keep thinking of others really others and I thought oh there's that work I don't think you will

370
00:30:41,380 --> 00:30:49,720
work at least it's not going to work in an easy manner yeah yeah yeah so thank you

371
00:30:50,960 --> 00:30:55,200
okay next I don't see any

372
00:30:58,430 --> 00:30:58,730
uh

373
00:30:58,730 --> 00:30:59,670
up their hand, raise.

374
00:31:01,930 --> 00:31:02,610
Director Keegan.

375
00:31:03,310 --> 00:31:03,930
Third, Keegan.

376
00:31:05,550 --> 00:31:06,450
Thank you very much.

377
00:31:06,870 --> 00:31:09,590
And thank you, Chris, for a very thorough presentation.

378
00:31:12,170 --> 00:31:13,770
So complicated.

379
00:31:13,770 --> 00:31:15,090
Very complicated.

380
00:31:18,600 --> 00:31:25,140
You know, I think that one of the things that concerns me

381
00:31:26,020 --> 00:31:31,320
is the issues with the part, not that we couldn't mitigate

382
00:31:31,320 --> 00:31:39,160
those or deal with them appropriately. But I feel like it adds another layer of regulatory issues.

383
00:31:39,940 --> 00:31:47,120
Sometimes even there's financial issues associated with impacts to parks and how the parks

384
00:31:47,120 --> 00:31:56,120
were originally purchased and things like that. How deep have our discussions been? The staff

385
00:31:56,120 --> 00:31:58,080
report mentions that we've had discussions,

386
00:32:00,640 --> 00:32:02,660
but I'm going to say one of the fatal flaws,

387
00:32:03,260 --> 00:32:07,160
but what are the issues that are sort of being brought forward that you think you're going

388
00:32:07,160 --> 00:32:08,340
to be particularly a challenge?

389
00:32:09,040 --> 00:32:13,960
So we have talk to staff, both at the higher level of state level, at low level of some

390
00:32:13,960 --> 00:32:19,720
local staff, on what's in the potential improvements might be necessary in order to make this

391
00:32:19,720 --> 00:32:22,320
available for proper four state parks.

392
00:32:22,320 --> 00:32:27,540
What we're doing right now is talking to state parks about some of the different restrictions during the place.

393
00:32:27,820 --> 00:32:32,220
For what we can discern, what we're getting from state parks and people council.

394
00:32:33,280 --> 00:32:38,140
If you do eliminate a portion of the park, that portion of land is no longer part of it.

395
00:32:38,300 --> 00:32:40,220
It's easy to be a state evacuation area.

396
00:32:40,700 --> 00:32:45,980
And if it is a state evacuation area, there are some different restrictions that come along with that.

397
00:32:46,060 --> 00:32:49,300
I mean, obviously, as a recreation area, ask the live recreation purposes.

398
00:32:49,300 --> 00:32:54,140
It also has to be as an industry, right, so it does have to be management of that evacuation area.

399
00:32:54,820 --> 00:33:02,200
So, from the terms of just being as simple as where kind of the land swap is not quite that simple.

400
00:33:02,600 --> 00:33:07,600
That's why the option that we're actually presenting right now is the 2.5 billion dollar option,

401
00:33:07,600 --> 00:33:11,220
which is actually the downstream location with a person gap, right?

402
00:33:11,500 --> 00:33:17,580
If we were to make the part of the upstream location, that's actually a net savings for the product of about $2 million.

403
00:33:17,580 --> 00:33:25,000
We know that it's not an easy one, which is why we haven't put it in there as the base base scenario at this point

404
00:33:25,000 --> 00:33:33,860
Because it is one that takes some discussion to take parts and it will probably take some creative solutions in terms of our land management and land acquisition

405
00:33:33,860 --> 00:33:40,420
So it actually gets that that agreement to be automated if necessary.

406
00:33:41,280 --> 00:33:47,780
Well, it sounds like from what you're saying that we not only could be inviting additional

407
00:33:47,780 --> 00:33:52,420
regulatory oversight above and beyond just the mechanics of trying to work out the

408
00:33:52,420 --> 00:33:55,680
deal, but that that's something that could potentially be on the drawing.

409
00:33:55,700 --> 00:33:56,680
That is correct.

410
00:34:00,160 --> 00:34:06,720
Okay, so the devil will be in the details in terms of dealing with that.

411
00:34:06,720 --> 00:34:18,440
The letter from the Sierra Club questioned the timing of the EIR and suggested that we're

412
00:34:18,440 --> 00:34:24,540
being a little aggressive in our schedule and I know what things like environmental documents

413
00:34:24,540 --> 00:34:27,800
it's always what comes first, the chicken or the egg, right?

414
00:34:28,360 --> 00:34:36,700
And I think we have some lessons from Anderson where we needed additional studies to

415
00:34:36,700 --> 00:34:43,020
tell us very significant things about, you know, the project, particularly the subsurface

416
00:34:43,020 --> 00:34:46,140
conditions, the existing condition of the dam.

417
00:34:47,880 --> 00:34:54,040
Can you explain a little further as to, you know, why we want to go in the direction

418
00:34:54,040 --> 00:34:58,620
that we're going in as opposed to what the Sierra Club may be suggesting?

419
00:35:00,000 --> 00:35:09,260
I'm sure, so obviously, there is a requirement in the water source of the program, brain, it says that we need to produce a graph, the IAR, why we need to produce here.

420
00:35:09,620 --> 00:35:25,320
That is to secure our $407 million funding, at least until we get to the full reward section. That is one of the three requirements. The other is a feasibility report, as well as a commitment to funding up to 75% of the non-state benefits.

421
00:35:25,320 --> 00:35:31,480
In terms of producing the UNR, we have that outside of the UNR, the policies in terms of

422
00:35:31,480 --> 00:35:36,540
a very respectful analysis of what's required to this first phase of our new

423
00:35:36,540 --> 00:35:36,840
system.

424
00:35:36,920 --> 00:35:39,100
We're doing our environmental analysis as well.

425
00:35:39,360 --> 00:35:42,680
We're going out and doing our annual surveys to see who we're going to have required

426
00:35:42,680 --> 00:35:46,040
to be at the different impacts to some of the affected speech keys.

427
00:35:46,280 --> 00:35:51,060
As well as our cultural survey, it's kind of the normal pace of operations when it comes

428
00:35:51,060 --> 00:35:54,940
to exploration and the EIR production.

429
00:35:55,740 --> 00:35:58,580
Of course, I would say that because of the first time

430
00:35:58,580 --> 00:36:01,000
training, what was really lost is the ability

431
00:36:01,000 --> 00:36:03,180
to go through an extended planning phase.

432
00:36:04,220 --> 00:36:06,820
But in this circumstance, this part is a little bit unique.

433
00:36:07,520 --> 00:36:09,960
They did kind of go through some preliminary planning

434
00:36:09,960 --> 00:36:11,820
15 years ago when they looked at where

435
00:36:11,820 --> 00:36:13,920
the different those boards could be situated.

436
00:36:14,700 --> 00:36:18,160
So this kind of the research of an existing project

437
00:36:18,160 --> 00:36:23,020
this kind of shell. In addition, at 2017, we actually went through a piece of

438
00:36:23,020 --> 00:36:27,720
liberty analysis in order to restart application for our first investment

439
00:36:27,720 --> 00:36:32,440
program. And we're basically, you know, being to these significantly

440
00:36:32,440 --> 00:36:36,920
feasible at that point, it's basically crossing keys, dotting eyes before we get our

441
00:36:36,920 --> 00:36:40,360
full piece of liberty determination. So I would say that we're actually taking this

442
00:36:41,160 --> 00:36:45,980
in the proper order and with all new care and diligence, the real question will

443
00:36:45,980 --> 00:36:49,100
We found the types of continents that we get from our record, right?

444
00:36:49,560 --> 00:36:54,800
Depending on the number and substance of the continents that come in, we could take us

445
00:36:54,800 --> 00:36:56,720
along with the finalized or finalized ones.

446
00:36:56,900 --> 00:37:01,420
And we're not trying to the part before the force, you know, we've got what we have in terms

447
00:37:01,420 --> 00:37:07,760
of schedule is aggressive schedule, but it's also reflecting on the fact that we are

448
00:37:07,760 --> 00:37:10,800
engaging with our regular agency's all-written.

449
00:37:11,840 --> 00:37:17,100
California, the Department of Fish and Wildlife, it is actually a part of the process, not just the regulatory agency.

450
00:37:17,520 --> 00:37:20,480
We are actually talking to the National Leadership Service right now.

451
00:37:20,960 --> 00:37:24,520
When we engage the U.S. Fish and Wildlife Service to see if they have a conference, right?

452
00:37:24,560 --> 00:37:28,240
It would be lessons that we wanted from Anderson to the United States people approach.

453
00:37:28,700 --> 00:37:32,600
But what we were taking forward right now and we're hoping that's going to take evidence in the company process.

454
00:37:33,460 --> 00:37:41,060
Ultimately, you know, we need to put our money where an office has to get to a company to make sure that we actually can get those things in the time of fashion.

455
00:37:41,060 --> 00:37:44,900
And that is one of the largest dumping lots of them comes to a lot of our watershed

456
00:37:44,900 --> 00:37:49,800
projects in NR, the Ancicycle Problem, so we're keenly aware of that, and we know

457
00:37:49,800 --> 00:37:54,760
what the large hurdle is above us, which is why I mentioned, but even if you have a significant

458
00:37:54,760 --> 00:37:59,960
delay to the starter construction, I think the current cost estimate will not significantly

459
00:37:59,960 --> 00:38:04,860
increase because we have a couple of different levers before to help bring those costs back now.

460
00:38:04,860 --> 00:38:08,660
Well, so we all know how to hope spring's eternal, right?

461
00:38:10,040 --> 00:38:11,920
Thank you for that detailed response.

462
00:38:12,980 --> 00:38:19,130
Just sort of one follow-up question to that, which would be, you know,

463
00:38:19,250 --> 00:38:22,350
we were talking about decision points, right?

464
00:38:22,350 --> 00:38:25,690
And so going through this,

465
00:38:26,110 --> 00:38:29,570
draft ER process at this time,

466
00:38:29,570 --> 00:38:37,470
could allow us a decision point based on what comes to the surface, both in terms of the

467
00:38:37,470 --> 00:38:43,990
additional planning and engineering work that's going to happen as part of that effort,

468
00:38:44,870 --> 00:38:50,650
but also in terms of the responses that we receive to that draft.

469
00:38:51,870 --> 00:38:56,550
So I guess that's something that I would be interested in.

470
00:38:56,550 --> 00:39:07,830
I think that that to be a very logical decision point for the board to really be thinking about our level of interest at that point.

471
00:39:08,610 --> 00:39:09,870
So, thank you very much.

472
00:39:12,460 --> 00:39:13,240
Through the chair.

473
00:39:14,300 --> 00:39:14,940
The right to be running.

474
00:39:17,080 --> 00:39:18,040
Thank you.

475
00:39:18,880 --> 00:39:24,060
So, I was one of the members that we bought a story to explore toward committee.

476
00:39:26,300 --> 00:39:29,220
We've heard each of these meetings most recently.

477
00:39:30,180 --> 00:39:40,440
from all groups, environmental groups, potential P3 partners that have come to the committee,

478
00:39:41,960 --> 00:39:48,240
and from all the various agencies that are interested in wanting to build this project

479
00:39:48,240 --> 00:39:53,080
or to minimize it or not build it at all. We've heard it all.

480
00:39:53,080 --> 00:39:59,400
But what I'm concerned about is the current price of water.

481
00:40:00,000 --> 00:40:09,600
On the spot market that we are currently paying for, and it's exploding. And whether or not you're aware,

482
00:40:09,600 --> 00:40:18,140
But California water is now being exchanged, being traded on the open exchange market, through

483
00:40:18,140 --> 00:40:19,720
Chicago Market and time.

484
00:40:20,460 --> 00:40:26,600
And it's one of the most explosive opportunities to buy water and hold it.

485
00:40:26,900 --> 00:40:32,660
Certain public employee retirement service groups are investing in California water.

486
00:40:32,660 --> 00:40:39,180
to hedge against future costs so that they have an asset that they enter and can sell

487
00:40:39,180 --> 00:40:43,680
to what are utilities such as Valley Water and others up and down the state of California.

488
00:40:45,060 --> 00:40:49,060
California Water is a hot commodity product.

489
00:40:51,320 --> 00:40:59,120
Here, Valley Water are only hitch against these future increases and costs that we have to

490
00:40:59,120 --> 00:40:59,400
pay.

491
00:40:59,400 --> 00:41:16,120
We have no choice, is to continue to find resources to build resources, to storm one, to offer some kind of respite against attitude, to buy, continue to buy water of the smart market, and we probably will have to even then.

492
00:41:16,120 --> 00:41:25,860
At the same time, continuing our expansion of water recycling water purification, potential

493
00:41:25,860 --> 00:41:34,500
desolination, the continuation of conservation levels, and hearing from many of the

494
00:41:34,500 --> 00:41:39,840
electives that are on the water commission meeting that I listened in on today.

495
00:41:41,100 --> 00:41:48,020
Our advocating, we must find ways to keep our water reach low, to continue to offer affordable

496
00:41:48,020 --> 00:41:53,300
water to be agricultural communities, and what about the mandated housing that the state

497
00:41:53,300 --> 00:41:59,080
of California is insisting that we build, and what about the water supply, who that?

498
00:41:59,080 --> 00:42:14,080
And the only reason where some come with I'm the director of is your moron for 4,000 housing youths in the city of Morgan, the other than you 4,000

499
00:42:15,820 --> 00:42:23,420
And there's black clothes not going to be involved in that. No one's going to be involved. The state is bad and it's up and down the state.

500
00:42:23,420 --> 00:42:34,660
So, what that being said, I don't really think we have no option, other than to continue developing the chapter.

501
00:42:35,480 --> 00:42:42,560
Now, we have options. We can consider downsizing the size of the facility.

502
00:42:44,040 --> 00:42:48,620
We can do the same with Anderson. We could look at options that we currently have.

503
00:42:48,620 --> 00:42:57,400
But we must build storage for the future, as we continue with all the other water supplies,

504
00:42:57,640 --> 00:43:01,200
sustainable options that we are looking at.

505
00:43:01,480 --> 00:43:07,200
The cost of water is increasing, so when is it a good time to buy a house?

506
00:43:07,980 --> 00:43:12,320
Right now, when is it a good time to invest in water infrastructure?

507
00:43:13,620 --> 00:43:14,380
Right now.

508
00:43:14,380 --> 00:43:20,540
So, that's my opinion and I think it's important that we continue the conversation to bring

509
00:43:20,540 --> 00:43:24,600
Pachea going to the forest with my colleagues.

510
00:43:24,700 --> 00:43:25,140
Director.

511
00:43:25,300 --> 00:43:26,000
Thank you, Director.

512
00:43:26,300 --> 00:43:26,680
Next one.

513
00:43:27,060 --> 00:43:28,140
Director, was that in the Vice Chair?

514
00:43:28,580 --> 00:43:30,360
Director, was that in the Vice Chair?

515
00:43:36,430 --> 00:43:42,010
Chris could just go over again the slide that talked about the financing plan.

516
00:43:43,290 --> 00:43:47,570
I did quite follow the funding sources diagram to the allocation of finance.

517
00:43:48,350 --> 00:43:53,170
I'll pull it back up and then I'll actually take it to Charlie and if she's going to be the best source of info.

518
00:44:00,180 --> 00:44:02,280
Is this a sign you're talking about for her?

519
00:44:02,620 --> 00:44:02,680
Yes.

520
00:44:04,120 --> 00:44:04,820
Charlie, take away.

521
00:44:06,930 --> 00:44:09,310
Good afternoon, chair members of the board.

522
00:44:09,490 --> 00:44:12,410
I'm Sean Lee's son, treasuring the officer for value water.

523
00:44:12,450 --> 00:44:12,990
Good afternoon.

524
00:44:13,710 --> 00:44:14,970
Could you please?

525
00:44:15,670 --> 00:44:18,130
Maybe a lot of way I'm with the question is.

526
00:44:18,630 --> 00:44:21,410
So I see two scenarios there.

527
00:44:21,410 --> 00:44:29,790
actually my slide on the allocation of funding has writing in the report and the report.

528
00:44:32,910 --> 00:44:43,130
Okay, so you're talking about the, okay, it seems like the process slide is missing some.

529
00:44:43,130 --> 00:44:47,070
Yeah, it shows correctly on mine, but I'm going to see if I can get it up.

530
00:44:47,710 --> 00:44:48,590
So, okay, hang on with that.

531
00:44:48,590 --> 00:44:56,550
And while you're doing that, my question is, the funding sources, how does that relate to allocation of funding?

532
00:44:57,990 --> 00:44:59,810
Okay, Chris, I've got this right now.

533
00:45:00,000 --> 00:45:03,560
I'm sorry for my screen if you want to stop here. I can share my screen.

534
00:45:05,340 --> 00:45:11,820
Okay, so I can speak to it more clearly. So okay, let me just explain this graph. Can everyone see it now?

535
00:45:13,220 --> 00:45:22,140
Yes? Yes. On the left hand side of the graph, it's dealing with the funding sources are. So we have three major funding sources.

536
00:45:22,140 --> 00:45:27,040
The WIFI alone, which is a low-cost federal loan, that we're going to be actively pursuing,

537
00:45:28,280 --> 00:45:34,720
and of course the WISIT grant, and the funder grant would have to issue long-term bonds to pay for it.

538
00:45:34,840 --> 00:45:40,760
So that's the funding sources. On the next to us, so this is probably the entire project, right?

539
00:45:41,440 --> 00:45:47,360
So this may be, then, you know, so this may then be, at least at the debt financing portions,

540
00:45:47,360 --> 00:45:51,440
then we'll be allocated to partners if we get partners.

541
00:45:51,780 --> 00:45:55,600
So that's what the charge on the right-hand side is trying to demonstrate.

542
00:45:56,380 --> 00:46:03,460
Right? So in order, and this is the charge on the right-hand side is demonstrating that partners,

543
00:46:04,040 --> 00:46:07,660
in the previous line, Chris has talked about that once in their rail,

544
00:46:07,960 --> 00:46:14,140
is that we would try to sell 50,000 acre feet or 36% of the reservoir, right?

545
00:46:14,140 --> 00:46:20,440
And when you take that into, just you know, a mathematical equation that equals about 91,

546
00:46:21,020 --> 00:46:25,440
91 billion dollars, 36 percent of the entire project. And so,

547
00:46:25,500 --> 00:46:28,700
so does that really get rid of the funds?

548
00:46:29,540 --> 00:46:35,140
No, so that means that partners will be paying a share of any debt financing.

549
00:46:35,980 --> 00:46:43,320
So, in this, for example, in this scenario, we're trying to present is the entire debt financing,

550
00:46:43,320 --> 00:46:49,640
You know, the RIP the alone and long-term debt, the total financing cost is 3.8 billion,

551
00:46:50,020 --> 00:46:56,440
and that's principal interest, advertised over at 30 or 35 years, and the average annual

552
00:46:56,440 --> 00:47:03,200
debt service is around $81 billion. So that means that potentially the other partners would be responsible

553
00:47:03,200 --> 00:47:10,020
for a 36% of that 81 billion annual debt service properly speaking, right? So, so this is attempting to

554
00:47:10,020 --> 00:47:12,840
there with the cost implications might look like.

555
00:47:13,460 --> 00:47:15,540
Now, it may be a different scenario.

556
00:47:15,780 --> 00:47:17,900
For example, the partners may want to structure

557
00:47:17,900 --> 00:47:20,700
their own financing and come up with cash

558
00:47:20,700 --> 00:47:23,540
to pay for the project up front, that may be an unnecessary.

559
00:47:24,200 --> 00:47:27,140
But nevertheless, this picture is just trying to show you

560
00:47:27,140 --> 00:47:30,140
if we were to arrange the entire financing for the project

561
00:47:30,140 --> 00:47:32,020
and just bring partners on to bear

562
00:47:32,020 --> 00:47:34,200
the portion of that cost within what look like.

563
00:47:34,560 --> 00:47:36,280
And that's the scenario, for example,

564
00:47:36,360 --> 00:47:38,760
where you have been in discussion with San Daniel,

565
00:47:38,760 --> 00:47:46,700
where they would like us to arrange all of the financing and they just, you know, the invoice for two and a half percent or ten percent or whatever the auction would want to exercise.

566
00:47:47,160 --> 00:47:48,340
Does that answer your question?

567
00:47:49,000 --> 00:47:50,840
Yeah, none of that makes sense.

568
00:47:51,320 --> 00:48:05,600
We're basically going to get all the money and then have partners to help pay us back or their share of the principle of interest based upon what their share of the water they're going to be receiving.

569
00:48:05,600 --> 00:48:15,640
All right, in this and there, that would be true, but I'm saying that, you know, there could be other scenarios where the partner wants to do their own financing or bring up with right

570
00:48:15,640 --> 00:48:27,460
Your own cash and then would look a little bit different. Nevertheless, that year is so that it would still be paying for up to 36% of the total project cost. However, it's finance whether it's cash or through us or some other means.

571
00:48:27,460 --> 00:48:36,640
So we need to, we need to, this scenario, you're suggesting that our partners, our partners, are going to equal 36 percent.

572
00:48:38,700 --> 00:48:39,120
And okay.

573
00:48:39,540 --> 00:48:44,540
And we don't know who our partners are or what they're going to be willing to come up with.

574
00:48:45,080 --> 00:48:51,100
That, that is what is going to be under discussion met by person, Garth and others. Yes.

575
00:48:52,040 --> 00:48:53,600
With partners. Yes.

576
00:48:54,120 --> 00:48:56,760
This is what we would be going after.

577
00:48:59,800 --> 00:49:11,440
What are we going to, but over on the blue side we've got the San Benito and our workers together for 44%.

578
00:49:11,440 --> 00:49:19,600
That's not, that's not a partner that's over in the 66% San Benito is in with us on this 44%.

579
00:49:19,600 --> 00:49:20,020
Yes.

580
00:49:20,180 --> 00:49:21,200
It's not the real capacity.

581
00:49:21,560 --> 00:49:26,820
We have an MOU with San Benito, where they are interesting participating in two and a half

582
00:49:26,820 --> 00:49:30,760
percent to start with an option to increase that up to 10 percent.

583
00:49:31,960 --> 00:49:34,260
Of that 44 percent.

584
00:49:34,500 --> 00:49:36,580
Of the 44, right, right, right, right.

585
00:49:36,760 --> 00:49:39,440
And like I said, the partners are,

586
00:49:42,740 --> 00:49:44,700
yet to be the type of, we're shouldn't open a prayer.

587
00:49:45,060 --> 00:49:45,200
Yeah.

588
00:49:45,340 --> 00:49:45,960
We need to do that.

589
00:49:46,260 --> 00:49:52,480
But if we, I mean, our costs and our liability, our dead service,

590
00:49:52,480 --> 00:49:55,880
could be the total if we don't get any partners.

591
00:49:56,980 --> 00:49:57,720
That's correct.

592
00:50:00,690 --> 00:50:05,500
All right. Thank you. Vice chair.

593
00:50:06,480 --> 00:50:07,760
Oh, thank you chair.

594
00:50:10,180 --> 00:50:16,000
Meet staff to talk a little bit about. I understand that there might be infrastructure bill.

595
00:50:18,600 --> 00:50:22,040
Where this could play in the infrastructure bill.

596
00:50:22,880 --> 00:50:28,100
I've heard as low as $1 trillion to as much as $10 trillion.

597
00:50:29,260 --> 00:50:30,280
with the team.

598
00:50:30,880 --> 00:50:39,100
I'm going to ask John Roach and talk about what he knows about the infrastructure bill that's currently being drafted and what any potential might be or about water.

599
00:50:39,900 --> 00:50:42,040
So benefit and it's all those fun.

600
00:50:43,200 --> 00:50:46,780
And you please repeat the question, Vice Chair, was that the regard of the federal side?

601
00:50:47,580 --> 00:50:47,640
Yes.

602
00:50:48,740 --> 00:50:56,880
Well, well, both, I understand that we're covering their potentially, I've heard that there might be more than a dollar.

603
00:50:56,880 --> 00:50:58,340
but it's coming here.

604
00:50:58,580 --> 00:50:59,320
Is that accurate?

605
00:51:00,420 --> 00:51:01,300
Well, I really am.

606
00:51:01,420 --> 00:51:04,240
I've heard the number of trillion from Credible Health.

607
00:51:04,620 --> 00:51:04,720
Come on.

608
00:51:04,800 --> 00:51:05,440
Oh, no.

609
00:51:05,720 --> 00:51:06,700
Thank you for the question.

610
00:51:06,920 --> 00:51:09,680
I'm going to defer to our room on our state side

611
00:51:09,680 --> 00:51:11,860
to see if you can provide anything there on this state.

612
00:51:12,460 --> 00:51:14,100
And then as far as the federal side,

613
00:51:14,400 --> 00:51:15,060
I'll follow up on that.

614
00:51:17,980 --> 00:51:19,320
I'd like to have to.

615
00:51:20,900 --> 00:51:21,700
Good afternoon.

616
00:51:23,780 --> 00:51:27,860
We're regarding the state side, the opportunities

617
00:51:27,860 --> 00:51:42,820
from funding of a dam project are very low, almost none. In fact, in a $2 billion early action budget

618
00:51:42,820 --> 00:51:51,040
proposal that was released last week by the Senate Pro-Tem's office based specifically state

619
00:51:51,040 --> 00:51:57,880
non-down projects, low-hanging fruit that could be executed quickly for drought response.

620
00:51:58,580 --> 00:52:02,960
That's a $2 billion package, none of it will include dam funding.

621
00:52:04,440 --> 00:52:10,880
Valleywater is advocating for dam safety funding through bonds that are, there are two major

622
00:52:10,880 --> 00:52:15,860
bond bills moving through the legislature now, one of the Senate and one of the assembly,

623
00:52:15,860 --> 00:52:25,620
and we are advocating for seismic retrofit of dams funding and but ultimately for the

624
00:52:25,620 --> 00:52:31,740
Pachinko project there doesn't seem to be very much opportunity except for through the existing

625
00:52:31,740 --> 00:52:45,600
water storage investment program through the California Water Commission. That's the

626
00:52:45,600 --> 00:52:58,000
up to $496 million. Those funds are only going to be made available as other wisdom, allocated

627
00:52:58,000 --> 00:53:06,960
projects, actually withdraw, and make their funds available for a second solicitation.

628
00:53:06,960 --> 00:53:10,120
And so, as a matter of fact, I think that happened.

629
00:53:10,300 --> 00:53:12,400
You're ready with Temperance Flaps, as an example.

630
00:53:12,800 --> 00:53:13,520
It didn't really happen.

631
00:53:13,580 --> 00:53:15,060
It did happen with Temperance Flaps.

632
00:53:15,980 --> 00:53:18,980
And basically what the Water Commission decided to do

633
00:53:18,980 --> 00:53:24,040
was to allocate 46 million to two groundwater projects.

634
00:53:24,220 --> 00:53:26,960
They didn't receive full funding through the first solicitation.

635
00:53:27,660 --> 00:53:33,320
And then to allocate $61 million to an inflation adjustment

636
00:53:33,320 --> 00:53:35,860
for the existing wizard funded projects

637
00:53:35,860 --> 00:53:42,400
of which Pacheco received $12 million additional, and then finally, $64 million has been

638
00:53:42,400 --> 00:53:50,580
held for a second solicitation, which Valley Water could pursue either for Pacheco and

639
00:53:50,580 --> 00:53:57,780
or Anderson. So, but that's just $64 million. However, if some other visit on the project were

640
00:53:57,780 --> 00:54:05,480
to not meet the deadline of January 1st, 2022 for released withdrawal today are 75% of

641
00:54:05,480 --> 00:54:09,480
their non-state funding and a feasibility study. If they can't meet those requirements,

642
00:54:10,100 --> 00:54:17,700
then there might be more money available for reallocation. However, all of that is an uncertainty

643
00:54:17,700 --> 00:54:24,460
at this point. Thank you, Bart. And then on the federal side, Vice Chair. As far as the infrastructure

644
00:54:24,460 --> 00:54:26,160
You're building a year mark funding opportunities.

645
00:54:26,480 --> 00:54:30,960
Our best chance of funds for Pacheco's understanding is the infrastructure package.

646
00:54:31,240 --> 00:54:35,880
And we are advocating for that, of course, and we'd like to include funding for any new storage

647
00:54:35,880 --> 00:54:37,660
or I'm sorry, new water storage projects.

648
00:54:38,360 --> 00:54:41,840
There could be a new pop this could be our new pot of funding to replace the WINX storage

649
00:54:41,840 --> 00:54:46,700
funding, but we still need to go through the feasibility determination process in order to be eligible.

650
00:54:47,360 --> 00:54:50,700
While this infrastructure bill may provide an opportunity for your marks, we don't

651
00:54:50,700 --> 00:54:51,080
know yet.

652
00:54:51,080 --> 00:54:53,060
and negotiate some going on, but as I mentioned,

653
00:54:53,280 --> 00:54:54,480
we are of our course trying to advocate

654
00:54:54,480 --> 00:54:56,240
for the inclusion of the Jacob already.

655
00:54:58,980 --> 00:54:59,960
All right, so I'm glad, guys.

656
00:55:00,000 --> 00:55:03,880
I guess they have sent to the board and say, maybe we should move this in that highest legislative

657
00:55:04,440 --> 00:55:13,990
priority, at least on the federal side. You know, now's the time to do it. And one of the thoughts I mean, I can

658
00:55:13,990 --> 00:55:19,510
put in a form of emotion to make this a question. One can think of a higher priority than this, I'd

659
00:55:19,510 --> 00:55:29,090
want to know. Well, let's hold the motions, but we can certainly entertain it, but let's just hold them

660
00:55:30,650 --> 00:55:31,580
But definitely.

661
00:55:32,650 --> 00:55:33,390
I'll show you.

662
00:55:33,550 --> 00:55:35,230
No, don't show it out, either.

663
00:55:36,630 --> 00:55:39,430
We didn't go to slide 11.

664
00:55:59,000 --> 00:56:05,600
Is this exactly comparing apples and oranges and I'll explain why I'm talking about this?

665
00:56:05,960 --> 00:56:10,420
Aren't you going to be a back in the mill or a back?

666
00:56:10,780 --> 00:56:15,160
It's more the same problem of water stored in that we can't get back.

667
00:56:15,160 --> 00:56:21,700
I think every board member who's here willing to do a first-low challenge is saved by

668
00:56:21,700 --> 00:56:22,020
Greens.

669
00:56:22,120 --> 00:56:29,940
So I'd say I'll make the comment that that's not campus and orgies at all and also we

670
00:56:29,940 --> 00:56:31,620
have known our out of the counties.

671
00:56:31,980 --> 00:56:36,900
So if you look at the pre-benefit of emergency water in case of an earthquake which we all

672
00:56:38,660 --> 00:56:46,340
So MacMolan, A-Bak, and lots of the parents don't help us all out of MacMolan, says my help us.

673
00:56:47,180 --> 00:56:52,980
And I think that's actually a good project, so I just want to make that out of the county, it's pretty far away.

674
00:56:53,900 --> 00:57:00,580
And not every thing, emergency water is not the same as normal water, I know that sounds crazy.

675
00:57:00,580 --> 00:57:09,580
But we know, we know Earthquakes, we know there can be an accident in the Delta, where saltwater floods, and so I would say,

676
00:57:10,820 --> 00:57:13,740
class only is not our only way we look at things.

677
00:57:15,440 --> 00:57:18,900
So that's 11, and then if we go to poor team,

678
00:57:22,250 --> 00:57:25,750
in the recent 80 comments, if you can start to debate, it's never seen this slide before.

679
00:57:26,410 --> 00:57:28,990
I looked at our last place in the game once in a year.

680
00:57:29,570 --> 00:57:35,390
So on this slide, what also is missing is the benefits, the disadvantage, the

681
00:57:35,390 --> 00:57:40,990
communities, which I think is one of our social injustice, goals, or, you know, is a

682
00:57:40,990 --> 00:57:43,430
plug-in foliage and see that's important.

683
00:57:44,450 --> 00:57:47,550
Also, no new water supplies, not afterwards.

684
00:57:48,050 --> 00:57:51,190
I mean, it would be applicable to how well you would do.

685
00:57:51,190 --> 00:57:58,170
So, there's actually some new water supplies, and the second is, it's climate change.

686
00:57:58,770 --> 00:58:04,130
Believers, we all know that there's going to be more precipitation, less snow-tastic.

687
00:58:04,490 --> 00:58:08,810
So, we're not going to be able to have the snow-tastic, the same kind of storage it would be.

688
00:58:09,050 --> 00:58:12,070
So, that water is going to run off the less there's new storage.

689
00:58:13,350 --> 00:58:19,810
So, this has been taken into account climate change, which I think we all agree on.

690
00:58:19,810 --> 00:58:31,370
So no new water supply, not exactly true, missing disadvantaged community protection and emergency storage.

691
00:58:35,840 --> 00:58:41,160
So let's go talk about, sorry, I got a lot to say, but I'm trying to keep the shorter.

692
00:58:42,760 --> 00:58:49,760
Is this issue around the parks that directed to you and said, you know, $200 billion is also a big number.

693
00:58:51,080 --> 00:59:01,800
And I think we heard from Boston State Senator Kevierro that she's very much in favor as other people are at the recreational backfills.

694
00:59:01,940 --> 00:59:05,160
What are the benefits in this area?

695
00:59:06,400 --> 00:59:07,540
Was that the slide?

696
00:59:08,320 --> 00:59:08,840
What's the slide?

697
00:59:09,260 --> 00:59:13,100
This is what we've opened with because you are absolutely correct.

698
00:59:13,260 --> 00:59:15,980
There are benefits basically inherent to value water.

699
00:59:15,980 --> 00:59:18,760
One of them is flood protection to disadvantaged communities,

700
00:59:19,060 --> 00:59:21,780
as well as basic emergency water supply.

701
00:59:22,500 --> 00:59:24,900
These, these, oh, I got the water quality problem.

702
00:59:25,360 --> 00:59:25,760
Right there.

703
00:59:26,240 --> 00:59:27,080
Not in that slide.

704
00:59:27,680 --> 00:59:27,800
Yeah.

705
00:59:28,100 --> 00:59:31,080
And basically, the benefit is absolutely emergency water

706
00:59:31,080 --> 00:59:32,080
is taking county.

707
00:59:32,540 --> 00:59:34,320
And that's a benefit that's unique to us.

708
00:59:34,380 --> 00:59:35,400
And we're talking partners.

709
00:59:35,860 --> 00:59:37,580
Some of those other benefits don't kind of say they don't

710
00:59:37,580 --> 00:59:40,080
work, but they may have their own unique benefits as well.

711
00:59:41,500 --> 00:59:41,680
Yeah.

712
00:59:41,960 --> 00:59:45,120
So just want to bring out these benefits,

713
00:59:45,120 --> 00:59:47,220
because these benefits were not as a presentation.

714
00:59:49,360 --> 00:59:51,040
And we know that things are getting tougher

715
00:59:51,040 --> 00:59:52,640
to get water across the Delta.

716
00:59:53,800 --> 00:59:56,760
And if you can store it in above normal years,

717
00:59:57,080 --> 00:59:59,900
or because there's no harm, issue that we're not going to do.

718
01:00:00,000 --> 01:00:06,060
We'll be able to have the snowpacks as our netflix store. So I just want to bring those up to back to the parks issue.

719
01:00:07,260 --> 01:00:16,220
Maybe that also can be gotten to legislative priorities because I know my students with the head of the parks, who used to be the head of the water commission arm.

720
01:00:16,440 --> 01:00:21,780
This might be looked at very favorably. Good, because issues around can be felt.

721
01:00:22,620 --> 01:00:26,780
But we keep, that's all I have to say for now. So I love to hear what other directors have to say.

722
01:00:26,780 --> 01:00:28,540
Thank you Vice Chair, good comments.

723
01:00:29,200 --> 01:00:31,940
But I got direct the Santos followed by direct the Liza.

724
01:00:38,380 --> 01:00:38,960
Thank you, Tony.

725
01:00:40,200 --> 01:00:44,100
You know, all the colleagues here has made some good points.

726
01:00:44,460 --> 01:00:45,060
There's no question.

727
01:00:45,620 --> 01:00:47,080
You know, let's go back to reality.

728
01:00:47,840 --> 01:00:52,120
I really support what Vice Chair Cremon has said,

729
01:00:52,340 --> 01:00:54,440
of course, and Director Verella, especially

730
01:00:54,440 --> 01:00:57,380
Director Verella, on about costs and issues.

731
01:00:57,900 --> 01:00:59,580
Today, you know, everything's about costs.

732
01:00:59,580 --> 01:01:06,180
But let's go back with the C-19 liquid as cause society today. We've got robins, killings,

733
01:01:06,380 --> 01:01:10,920
I can go on and on. It's just increasing every single day when you have an issue.

734
01:01:11,520 --> 01:01:15,700
Let's go back years ago when there was a fuel shortage. And the same thing happened.

735
01:01:16,480 --> 01:01:21,660
Could you imagine a society without water? So we don't seem to want to address that issue

736
01:01:21,660 --> 01:01:28,340
where we pay more damage control and you noble pay triple. So I understand what people have

737
01:01:28,340 --> 01:01:31,000
concerned by cost, but that's not my motivation.

738
01:01:31,700 --> 01:01:35,420
My motivation is that we have a source of water for now

739
01:01:35,420 --> 01:01:37,060
and the next generation that I've repeated

740
01:01:37,060 --> 01:01:40,240
the same conversation and you'll pay more in damage control.

741
01:01:40,540 --> 01:01:42,980
20 years today, some of us are gone.

742
01:01:43,440 --> 01:01:45,420
That generation is going to look back and say,

743
01:01:45,420 --> 01:01:48,120
you know those men and women that were elected during that time,

744
01:01:48,440 --> 01:01:51,180
they stood up and they made sure that we had water.

745
01:01:51,940 --> 01:01:53,880
Because right now folks were in a drought.

746
01:01:54,780 --> 01:01:56,320
And as John just got through saying,

747
01:01:56,320 --> 01:02:01,620
look at the cost that's being elevated right now. I don't see anybody talking about the options

748
01:02:01,620 --> 01:02:07,660
if you don't have water. That dam was built for a reason and people like ourselves somehow let it

749
01:02:07,660 --> 01:02:14,060
go to waste or whatever or fall down because they didn't want to subdivide with finances. Well,

750
01:02:15,080 --> 01:02:20,200
Anderson's going to be down for 10 years. Hello and I keep on hearing for different groups.

751
01:02:20,200 --> 01:02:23,380
to keep on telling me about water conservation, I agree.

752
01:02:23,960 --> 01:02:26,960
But if you don't have water, how are you going to conserve?

753
01:02:27,740 --> 01:02:31,780
So we better wake up and realize that's not about us here today.

754
01:02:32,040 --> 01:02:37,560
It's how do we guarantee the future for the young cremants and Michelle's

755
01:02:37,560 --> 01:02:41,560
grandchild and Tony's grandkids and my family and everyone else.

756
01:02:41,660 --> 01:02:42,760
I got mine.

757
01:02:43,720 --> 01:02:49,280
If that cost is going to cause you hesitation, it doesn't cost me because we'll pay way

758
01:02:49,280 --> 01:02:54,400
as John said, what's going on right now, why are people buying water because they know they

759
01:02:54,400 --> 01:02:58,460
can sell it and make nothing but money? And that's our business. And we must take care

760
01:02:58,460 --> 01:03:06,300
of the residents who pay the tax. We are in a drought. Hello, everybody here. We are in a drought.

761
01:03:07,720 --> 01:03:13,300
So we need to make sure there is water. No one comes up in any option if there's no water

762
01:03:13,300 --> 01:03:18,420
in this society will destroy itself if we don't have a source. Now there's other issues we can

763
01:03:18,420 --> 01:03:22,960
doing, counter-costal so on, the public can speed those up to make sure we have a good

764
01:03:22,960 --> 01:03:30,120
supply. I have no problem with that. But this Bacheco is a necessity. It's an alternate source,

765
01:03:30,280 --> 01:03:35,320
it's a emergency source, and it's water that has run it out to the ocean and we're not allowing

766
01:03:35,320 --> 01:03:41,100
it. We've got to stop it now before we pay way more damage control. Take this seriously as I know

767
01:03:41,100 --> 01:03:46,600
you all are when you all have good questions. But don't let this go as the people before us did.

768
01:03:47,460 --> 01:03:54,460
I'm not for that. If you want to be one-fifth day economy in California, then you've got

769
01:03:54,460 --> 01:04:00,360
to have water. To have the firm for C-19. To have the food that we eat. We've got to work

770
01:04:00,360 --> 01:04:04,780
together to make sure there's a source of water for the rest generation. So this is not a

771
01:04:04,780 --> 01:04:10,340
political speech, it's reality. I'm for this project 100%. There's other things we can do before

772
01:04:10,340 --> 01:04:16,200
that. I got no problem. This water storage committee is then a great job and we've got it all to you.

773
01:04:16,800 --> 01:04:22,680
I have no problem taking the insuendos or maybe said on the cost of this net

774
01:04:22,680 --> 01:04:27,500
But when you don't have water, we're going to see a society that will tear each other to pieces and

775
01:04:27,500 --> 01:04:32,000
Look at places and you know all we got to do is just bring the folks out from Israel out here

776
01:04:32,000 --> 01:04:34,020
They'll tell you how to grow stuff in desert

777
01:04:34,020 --> 01:04:41,860
We keep on forgetting about the experts, so we need to get to get together and all this different people who call in

778
01:04:41,860 --> 01:04:43,840
But they really don't know about reality.

779
01:04:45,280 --> 01:04:49,220
I've lived through disasters and my career,

780
01:04:49,680 --> 01:04:52,020
and at home when I lost everything through floods and so on.

781
01:04:52,260 --> 01:04:54,080
Today we've got to recapture that water.

782
01:04:54,420 --> 01:04:56,720
And right now we're trying to make deals for recycling.

783
01:04:57,120 --> 01:04:58,700
Look at the problems we're going through.

784
01:04:58,920 --> 01:04:59,860
Just to make sure.

785
01:05:00,000 --> 01:05:10,100
This Santa Clara County residents have a source of water. And I would commend everybody here to invest in ourselves to have water. So thank you.

786
01:05:12,470 --> 01:05:15,450
Thank you, Director Santos. Director Lizard?

787
01:05:18,550 --> 01:05:26,970
Chris, are we on track, we're complying with the January 1st, 2020 regulations under the

788
01:05:26,970 --> 01:05:27,830
WISP funding?

789
01:05:28,350 --> 01:05:33,510
I'm particularly concerned about that we have to have 75% of the non-public benefit

790
01:05:33,510 --> 01:05:35,370
cost share of the project.

791
01:05:37,090 --> 01:05:38,770
So, as I mentioned, there are three components.

792
01:05:39,010 --> 01:05:41,590
Two of them are easily on the hand.

793
01:05:41,950 --> 01:05:42,850
Yeah, this slammed up.

794
01:05:42,970 --> 01:05:44,070
I'm just worried about the last.

795
01:05:44,070 --> 01:05:50,590
And that basically what we need is a commitment from the board to fund 75% of the non-state benefits.

796
01:05:51,370 --> 01:05:53,550
And it's up to the board, how do you get one of the right that commitment?

797
01:05:53,550 --> 01:05:58,070
But if you're looking for partnerships in hand, then for 25% of the product,

798
01:05:58,350 --> 01:06:04,850
then we're not on target, but if the board is comfortable saying that regardless of how partnership discussions go,

799
01:06:05,230 --> 01:06:10,870
you guys are willing to fund 75% of the non-state benefit, then yes, we could do that today.

800
01:06:11,790 --> 01:06:13,870
And how much is that?

801
01:06:14,890 --> 01:06:19,570
So that would be about a one and a half billion dollars in our current estimate, I believe.

802
01:06:20,170 --> 01:06:25,080
Because you have about almost 500,000 or 500 million in prop 1 grant,

803
01:06:25,810 --> 01:06:28,040
subtracted from the two and a half billion overall costs.

804
01:06:28,710 --> 01:06:30,850
So you're living at 75% of two billion dollars.

805
01:06:34,320 --> 01:06:37,480
And that two billion is today's dollar, right?

806
01:06:39,220 --> 01:06:43,400
But today, as in 2020, I'm at 2020, I'm at 2019.

807
01:06:44,360 --> 01:06:46,240
It's actually escalated to the midpoint of construction.

808
01:06:46,980 --> 01:06:48,260
So it's real.

809
01:06:48,680 --> 01:06:53,920
In terms of, it's not going to get more expensive just because we decided we're going to call 2020 $28.

810
01:06:55,160 --> 01:06:55,440
Okay.

811
01:06:57,100 --> 01:06:57,700
Thank you.

812
01:06:58,500 --> 01:07:04,940
But that's 75 is whatever, whatever combination we have like with your loans and so on, right?

813
01:07:04,940 --> 01:07:11,020
Correct, we can basically all we have to do is make the commitment to fund that if we get with you for 49%

814
01:07:11,020 --> 01:07:18,180
That's our personal funding mechanism. Okay, additional partners that end up funding, you know 50 or 60% of the project. That's our business.

815
01:07:18,680 --> 01:07:22,380
All right, so I thought I thought with me it was not in the 75%

816
01:07:23,860 --> 01:07:31,180
With it is just a funding mechanism. It's not an actual allocation of additional money, right? Right, so we'll cost mom. So we

817
01:07:44,760 --> 01:07:59,940
So if we said 75% that includes loans and so on, that's a commitment that will comply and then we have to worry about how that's paid like, you know, if you get a loan, how are we going to pay for that?

818
01:07:59,940 --> 01:08:07,300
correct. Okay. Directil is not anything further for now. No, no, that was it. Thanks.

819
01:08:07,640 --> 01:08:11,400
No problem. Let's see. Anybody else I have a few questions myself.

820
01:08:13,160 --> 01:08:13,400
Sorry?

821
01:08:15,000 --> 01:08:20,260
Okay. Let me ask a few questions and then I get to the vice chair.

822
01:08:20,940 --> 01:08:25,940
I want to remind people that, you know, when energy brown,

823
01:08:26,720 --> 01:08:33,940
fat 90% of the budget to get us where we are today, people freaked out, people were jumping

824
01:08:33,940 --> 01:08:41,980
out of out of one story, buildings, going nuts, nobody was not only were they running

825
01:08:41,980 --> 01:08:50,120
around with heron fire and so on, but people were going nuts. Some of them were to the

826
01:08:50,120 --> 01:08:56,720
that's how bad it was. But where would we be today if that hadn't happened? So I want to remind

827
01:08:56,720 --> 01:09:04,540
people that looking at cost isn't the only thing that we have to worry about. Yeah, we've got to look

828
01:09:04,540 --> 01:09:10,720
at cost, but that's a given. I hear people talking about cost just like, you know, the water commission,

829
01:09:11,100 --> 01:09:16,400
every single person that told us, we should go after federal funding. Like, we wouldn't have thought

830
01:09:16,400 --> 01:09:22,880
about that. Thank God, they suggested it. You know, so we won't worry, you know, you got

831
01:09:22,880 --> 01:09:30,800
to worry about cost. Oh, nobody wants rates to be raised. Those were all a given. But

832
01:09:30,800 --> 01:09:36,160
like I said, you know, if we had not been, for people to do the hard lifting, like the

833
01:09:36,160 --> 01:09:42,540
recticentals mentioned, if Edmigie Brown had not stood up to everybody who's the only

834
01:09:42,540 --> 01:09:50,100
God that has done it since then. Nobody's done it since then. But that's why where we are

835
01:09:50,100 --> 01:09:57,860
because nobody has had the courage to do it and we know it's got to be done. Like the

836
01:09:57,860 --> 01:09:59,880
The central says, we have...

837
01:10:01,520 --> 01:10:26,240
But our responsibility is to the future. And I always, you know, I always say, this is why I always say, we are now, where those folks, Epigee Brown, direct the land ahead, those folks then that created all of the infrastructure that we enjoy and benefit from today, that's where we are now.

838
01:10:26,240 --> 01:10:30,440
That infrastructure is coming to an end.

839
01:10:31,440 --> 01:10:34,340
The population has tripled since then,

840
01:10:34,860 --> 01:10:36,340
and so in a different situation,

841
01:10:37,240 --> 01:10:43,200
but the obligation as I see is the same as the one they had,

842
01:10:43,660 --> 01:10:49,440
which was to worry about people that will be here in two generations from now.

843
01:10:50,080 --> 01:10:52,320
So I think we got to look at it that way.

844
01:10:52,320 --> 01:10:59,400
And I understand we have to talk about numbers and of course we will, but but you know, we have to put this in perspective.

845
01:11:00,260 --> 01:11:03,940
Everybody wants to talk about COVID. Oh, well, that's going on now.

846
01:11:05,200 --> 01:11:10,980
Let's, you know, a year ago, nobody imagined we would be dealing with COVID.

847
01:11:12,060 --> 01:11:19,760
So, we don't know what will happen years from now, but what we do know is as we have tried to tell people,

848
01:11:19,760 --> 01:11:23,660
There is no new source of water.

849
01:11:24,540 --> 01:11:26,880
We have to deal with the situation as it is now.

850
01:11:27,180 --> 01:11:30,480
And remember the reason why we even considered that

851
01:11:30,480 --> 01:11:38,060
Pachekal was an efficient solution is because when we had

852
01:11:38,060 --> 01:11:41,720
the reason why our storage capacity is where it is,

853
01:11:42,000 --> 01:11:46,160
down south, is because of one or two very wet years

854
01:11:46,160 --> 01:11:55,360
During a new, we're still benefiting from that, from that rain years later, so that's the idea of a

855
01:11:55,360 --> 01:12:04,420
Pachicle that when we have wet years, we could collect it, then we could store it, and then we have it, and that provides from years now.

856
01:12:04,980 --> 01:12:10,440
So just to put it perspective what it is, and remind ourselves, why we're even considering this stuff.

857
01:12:11,480 --> 01:12:21,400
Now, we obviously have already laid out the reasons for it, and so, and so, I think we

858
01:12:21,400 --> 01:12:25,240
got to look at how we present some of these things.

859
01:12:26,920 --> 01:12:36,140
Inforicists, on our numbers, we should talk about what the bottom line is for us as a district,

860
01:12:37,100 --> 01:12:44,080
And then try and get that. So what I mean is if you look at the water-raise structure

861
01:12:44,080 --> 01:12:50,500
that we've laid out, we've said, with Pacheco, it'll be 1% 1% increase of rates for

862
01:12:50,500 --> 01:12:56,600
the next, whatever 100 years. Well, I think we have to say that that's not what's going

863
01:12:56,600 --> 01:13:00,640
to happen because we're going to have to do alternatives. We're going to have to go

864
01:13:00,640 --> 01:13:05,720
after partnerships. We're going to have to do something else. And then that's the

865
01:13:05,720 --> 01:13:13,720
that's our commitment as a district. If that doesn't happen, then we can't do it. I think that's what we need to do today.

866
01:13:14,220 --> 01:13:24,220
It's to say, lay down exactly what we're willing, what it is that we are willing to do as a bottom line

867
01:13:24,220 --> 01:13:31,420
and then try and find that. If it doesn't come to fruition, then we can't do it.

868
01:13:31,420 --> 01:13:38,260
I think we've got time for that approach to lay down what the foundation will be

869
01:13:38,260 --> 01:13:45,640
look. This is how far we're willing to go. We think we can go and then work on

870
01:13:45,640 --> 01:13:50,740
that. Whatever combination that is, we still not sure how successful we'll be

871
01:13:50,740 --> 01:13:56,060
a partnerships. I think we'll be very successful with partnerships because there

872
01:13:56,060 --> 01:14:01,300
are a lot of value organizations that really need the kind of stories that we

873
01:14:01,300 --> 01:14:07,640
provide. I mean, if we think we're in a bad boat, they're in a much worse boat and they're

874
01:14:07,640 --> 01:14:14,540
in much greater the need than we have to storage. And so I think that's what we need to do with

875
01:14:14,540 --> 01:14:21,900
lay down what the bottom line is. We are not willing to pay this amount of water rates. We're only

876
01:14:21,900 --> 01:14:29,200
willing to do this much. And so on, I think if we do that, we'd be more comfortable talking to our

877
01:14:29,200 --> 01:14:32,920
community and our constituents about what the commitment is.

878
01:14:33,080 --> 01:14:38,240
And then when we compare the benefits and the costs,

879
01:14:38,800 --> 01:14:41,000
I think it will make more sense to people.

880
01:14:41,380 --> 01:14:46,260
But we got to remind ourselves, what the folks before us did,

881
01:14:46,500 --> 01:14:50,240
they had the courage to say, yeah, we know it's going to cost.

882
01:14:50,760 --> 01:14:54,640
But again, cost, there's two sides of the legion cost.

883
01:14:55,100 --> 01:14:57,380
One is what it's going to cost to do.

884
01:14:57,380 --> 01:14:59,900
And the other one is what it's going to cost NOT!

885
01:15:00,680 --> 01:15:29,960
And we never put that up. When we did the report to the city council, we never told them, what's it going to cost? Was Silicon Valley? Silicon Valley? Not to have water. What's that going to cost? What's it going to cost with Google and all these guys? Apple and all these folks are not serviced. What's that going to cost? When people can't watch the hands, you got to take a bath once a week and so on.

886
01:15:30,000 --> 01:15:38,180
What is that cost? I think we have to spend some time determining what that is and all these charts

887
01:15:38,180 --> 01:15:43,220
Or to be right next to this chart. It's gonna cost as much. We ought to say yeah

888
01:15:43,220 --> 01:15:49,300
This is what it's gonna what is it cost you to take a shower once a week instead of daily or whenever you want or whenever you need

889
01:15:49,300 --> 01:15:51,100
This is what it's gonna cost

890
01:15:51,100 --> 01:15:57,740
Okay, that's what I think we got it. We got to start talking about so that we could look at this in the right frame of mind

891
01:15:57,740 --> 01:15:59,540
Anyway, that's my two cents

892
01:16:00,260 --> 01:16:02,340
Vice chair was next

893
01:16:05,380 --> 01:16:19,380
is usual. I'm so my thunder. I was really looking at the last time of a big project like this came on it's a big water project like you mentioned. It passed by and I was reading some of the old news articles.

894
01:16:20,060 --> 01:16:32,560
There was so much opposition. It passed by 20 million votes cast 174,000. That was the margin real small margin on that and people raised the same things.

895
01:16:32,580 --> 01:16:39,660
Aren't we happy now that our four mothers and four fathers did that and you'll never find one of those no votes around you

896
01:16:39,660 --> 01:16:44,820
Nobody will ever admit it. They voted against that. If they were alive. Yeah

897
01:16:44,820 --> 01:16:49,060
So I know it's tough because we're facing this short you know

898
01:16:49,060 --> 01:16:55,610
I always you know at me I always complain about we do things at water time and doing something to me on water time

899
01:16:56,420 --> 01:17:01,340
The benefits of doing that are you don't look at this short term where it rates now today

900
01:17:01,340 --> 01:17:03,440
And if you look at what's going to happen in the future,

901
01:17:04,120 --> 01:17:06,300
you know, at the water commission today,

902
01:17:06,940 --> 01:17:09,360
someone who is a suit, I think it was

903
01:17:09,360 --> 01:17:11,640
the last guy who's Councilwoman Maria,

904
01:17:12,160 --> 01:17:15,300
Ristau said, well, if you look at the cost of not doing

905
01:17:15,300 --> 01:17:17,440
could shake away, you're not adding in there,

906
01:17:17,680 --> 01:17:19,440
is what's going to be the cost of the alternative

907
01:17:19,440 --> 01:17:23,620
going to buy stuff on this market, rationing,

908
01:17:23,920 --> 01:17:25,500
companies leaving, et cetera?

909
01:17:27,300 --> 01:17:35,000
So, I grew a direct rest of Mara, and as of now, I support this project, even though it's painful.

910
01:17:40,810 --> 01:17:41,950
Man, click, we have it.

911
01:17:42,390 --> 01:17:42,470
Okay.

912
01:17:49,060 --> 01:17:50,580
Oh, Mr. Gary raises hand.

913
01:17:51,620 --> 01:17:53,060
Yes, good afternoon, Andy.

914
01:17:57,430 --> 01:17:57,910
Are you muted?

915
01:17:59,770 --> 01:18:00,050
Okay.

916
01:18:00,750 --> 01:18:01,210
Good afternoon.

917
01:18:02,770 --> 01:18:03,090
Okay.

918
01:18:03,370 --> 01:18:06,810
Thanks for having me in recognizing me.

919
01:18:06,810 --> 01:18:12,230
You know, Senator Water Company is a pre-pick stakeholder in Santa Clara Valley Water

920
01:18:12,230 --> 01:18:18,290
District Valley Water, we're the largest retailers, so our rate payers essentially purchase

921
01:18:18,290 --> 01:18:21,470
half the water provided by Valley Water.

922
01:18:21,710 --> 01:18:22,810
So what do we have?

923
01:18:22,870 --> 01:18:27,530
We have a great strong interest in how water rates are impacted by infrastructure.

924
01:18:27,810 --> 01:18:32,210
Now I'll be the first one to tell you, we have to have a resilient water supply and we have

925
01:18:32,210 --> 01:18:34,670
to make investment in infrastructure.

926
01:18:36,050 --> 01:18:42,970
But when we see the increases in the cost of this project, you know, it looks like it's approaching

927
01:18:42,970 --> 01:18:52,890
on economic and that's that's today into the future, at a 2.5% adder to our 8.5% sort of into

928
01:18:52,890 --> 01:18:59,050
the future of water rate, that's pretty substantial for a project that creates very little

929
01:18:59,050 --> 01:19:06,990
water, branded ads, flexibility ads, and storage, and my sense is that investment could be

930
01:19:06,990 --> 01:19:13,610
better made in new water supplies, expanding, direct foldable, indirect foldable. We use

931
01:19:13,610 --> 01:19:18,050
investment in the most precarious, which, by the way, is north of the pumps north of

932
01:19:18,050 --> 01:19:25,290
Delta, and provides an avenue to bring valley water supplies into the county, even with

933
01:19:25,290 --> 01:19:33,250
interruptions to the pumps even if you know water fix doesn't happen. So a lot of advantages

934
01:19:33,250 --> 01:19:40,850
there and perhaps a bigger participation in that project could be a bigger benefit. This may

935
01:19:40,850 --> 01:19:46,970
be a viable project at some time. You know it's in something sort of to perhaps keep on a back

936
01:19:46,970 --> 01:19:52,210
burner but if you look at the way water demand is going now and the district's draft of water

937
01:19:52,210 --> 01:19:57,970
and plan is showing, you know, a decline in the expectation of water of men and, and that's what

938
01:19:57,970 --> 01:19:58,810
E.C. is well.

939
01:20:00,000 --> 01:20:13,560
The timing for this project may not be right, and it's a pretty expensive risk to take, particularly when you look at the need for other partners to kind of come through to, you know, make it even reasonably at now.

940
01:20:13,560 --> 01:20:19,340
So I want the board to really consider that, you know, half the county is put in the

941
01:20:19,340 --> 01:20:22,960
build for this through some of the water company and half to the other retailers.

942
01:20:23,500 --> 01:20:26,940
There's a lot of other beneficiaries downstream, whether it's environmental benefits,

943
01:20:27,280 --> 01:20:30,900
political benefits, that aren't really, that aren't really paid into the project.

944
01:20:31,340 --> 01:20:35,500
And so perhaps if there's some other ways to finance it and get the actual capital and

945
01:20:35,500 --> 01:20:39,640
get service costs off of the water rate payers, it looks a little better.

946
01:20:39,780 --> 01:20:42,720
But right now, it does not look like an economic project to me.

947
01:20:42,720 --> 01:20:44,700
Thanks. Thank you.

948
01:20:48,110 --> 01:20:54,270
Can I ask staff, is it true that there's no increase in supply?

949
01:20:55,070 --> 01:21:00,450
I mean, if you look at, if you just look back at the weather,

950
01:21:02,330 --> 01:21:07,030
even if you have one or two dry years at a five or ten,

951
01:21:07,870 --> 01:21:14,650
and you have substantial storage capacity that can pick up some of that supply

952
01:21:14,650 --> 01:21:19,690
that nobody's going to use that's going to go to waste. How much is that? Isn't that new supply?

953
01:21:19,970 --> 01:21:24,670
Isn't new supply water that you're not capturing? Is that new?

954
01:21:27,230 --> 01:21:28,350
New? I'm going to ask. I mean,

955
01:21:28,590 --> 01:21:33,690
water that isn't going to end up in the ocean? Isn't that new?

956
01:21:35,960 --> 01:21:37,160
I'm going to ask a meter or

957
01:21:37,160 --> 01:21:41,560
to participate and talk about how we model our water supplies.

958
01:21:42,120 --> 01:21:42,500
Thank you.

959
01:21:47,010 --> 01:21:50,530
Or maybe I could, maybe I could, or be sure, say I'm on.

960
01:21:51,630 --> 01:21:52,830
Okay, thank you, Sam.

961
01:21:53,050 --> 01:21:54,790
I was going to say I could, I could answer them.

962
01:21:55,590 --> 01:21:59,990
Oh, if you'd like to, you could both answer them.

963
01:22:00,030 --> 01:22:08,450
I'm, I'd say, I'm with a senior water resources specialist with the water supply and planning

964
01:22:08,450 --> 01:22:16,950
unit. And so the way we look at Pacheco, it's really a surface water thing. The surface

965
01:22:16,950 --> 01:22:22,990
water that does go in there, the majority of that goes to the fish benefits. So the added

966
01:22:22,990 --> 01:22:29,070
space that this reservoir is creating is for us to think are existing important water contracts

967
01:22:29,070 --> 01:22:37,550
of ice. So you're saying that no rain falls in there and no rain will be captured. And

968
01:22:37,550 --> 01:22:44,610
So when we have a real wet year, we're not going to capture more rain and the storage isn't

969
01:22:44,610 --> 01:22:45,630
going to increase.

970
01:22:47,230 --> 01:22:48,370
Is that what we're saying?

971
01:22:50,790 --> 01:22:55,390
Well, I don't care who benefits because the risk don't benefit from that, we're still

972
01:22:55,390 --> 01:22:56,570
going to provide it anyway.

973
01:22:58,330 --> 01:23:06,090
So is there an increase in water supply in a rain year, in a very wet year, taken in a

974
01:23:06,090 --> 01:23:12,590
year, like we've had before, where we had the capacity to store more water down south.

975
01:23:13,490 --> 01:23:14,530
What does that give us?

976
01:23:14,730 --> 01:23:17,510
Why do we would provide to fish then, yeah?

977
01:23:17,930 --> 01:23:23,690
Doesn't matter who we provide it to, because, you know, my point is, this more water.

978
01:23:25,170 --> 01:23:27,050
What we do with it is a different issue.

979
01:23:27,490 --> 01:23:30,050
My point is, that's new water.

980
01:23:31,090 --> 01:23:35,370
Water that we lose now, but then we'll capture

981
01:23:35,370 --> 01:23:39,070
Because of what we've done is new water.

982
01:23:41,880 --> 01:23:47,400
I mean, it doesn't matter what we do with it. We're going to have it to do something with like drink it

983
01:23:48,260 --> 01:23:55,200
But it's all provided to the fish or whatever, but it's new water, but right now it's lost

984
01:23:56,540 --> 01:24:00,760
So, you know, maybe we need a new definition. I don't know

985
01:24:00,760 --> 01:24:08,680
But isn't that true? I mean, when we had a linear wet years, that's how we got the savings to put it in our water bag

986
01:24:09,340 --> 01:24:17,320
That's what we got the water from. I mean, we didn't just, you know, start paying for more water to bank. We got a lot of it because we had

987
01:24:17,960 --> 01:24:32,480
What years I was here. I remember every every time we had a meeting it was it was storming outside. It was a wet year. It's overwhelmingly wet. Two years back to back elineal and that's how we put it we put away a lot of that water

988
01:24:33,800 --> 01:24:37,840
in in the bank. So I don't you know, why why are we talking about?

989
01:24:38,460 --> 01:24:44,940
What the capacity is, it's an increase in capacity, which means we capture water, that would have been lost.

990
01:24:46,280 --> 01:24:50,700
Why don't we call that new water? Because it is, it's new water to us.

991
01:24:52,380 --> 01:24:55,320
You know, I don't know, maybe a new definition.

992
01:24:56,800 --> 01:24:59,340
Captured water, I don't know, newly captured water.

993
01:25:00,000 --> 01:25:04,280
Increasing supply, because of the storage capacity.

994
01:25:07,420 --> 01:25:09,460
So I don't, I mean,

995
01:25:11,880 --> 01:25:14,960
am I, am I, am I, is that an illusion or,

996
01:25:18,130 --> 01:25:19,610
or are we looking at it differently?

997
01:25:23,260 --> 01:25:23,740
Third sense.

998
01:25:25,000 --> 01:25:33,620
Yeah, thank you, Mr. Chair. Yeah, not to turn on Samantha here, just it's a matter of, no, no, no, I'm saying for myself.

999
01:25:33,620 --> 01:25:39,620
And everything you're saying to him, I agree with 100%, let's go back to Anderson, when we

1000
01:25:39,620 --> 01:25:44,320
have people complain, well, the water, you know, Anderson should have held more in blah, blah, blah,

1001
01:25:44,680 --> 01:25:48,120
just think of Anderson wasn't there in the coyote flood.

1002
01:25:48,580 --> 01:25:54,540
We're not talking 4,000 CSFs, we're talking 25,000 if it wasn't there.

1003
01:25:54,820 --> 01:26:00,820
When the pioneers came here, this valley was underwater, and that's where the people before

1004
01:26:00,820 --> 01:26:09,500
We're doing things with fishing and whatever have you and feeding your animals and so we built a van for one reason to store water to supplement all these things

1005
01:26:09,500 --> 01:26:16,900
It helps reduce the flood as well as provide water and so everything is Tony saying is I'm just saying that's a common sense issue

1006
01:26:16,900 --> 01:26:22,300
Right now that water's coming down and it's not going in to

1007
01:26:22,300 --> 01:26:28,180
But check goes that should be it's going to soap lake and that's increasing and then the water is always to watch the bill

1008
01:26:28,180 --> 01:26:32,180
you name it to the ocean we're losing it so we want to recapture it was built there in the

1009
01:26:32,180 --> 01:26:37,580
beginning for that same reason and you can get water comes up on the top of Merced all the way

1010
01:26:37,580 --> 01:26:43,700
down so we need to capture that water it's such a just a common sense issue and you know it's so

1011
01:26:43,700 --> 01:26:48,700
hard to have new dams that either get anything so we have one that's there I just for me personally

1012
01:26:48,700 --> 01:26:53,600
and I'm sure other people have the same feeling why lose something that was there it was there

1013
01:26:53,600 --> 01:26:58,700
purpose to augment water supply and to make sure we have enough and we've got to continue

1014
01:26:58,700 --> 01:27:04,600
with that. Don't lose this because it's we are not able to get new dams today in California

1015
01:27:04,600 --> 01:27:08,940
because of all the infighting, all the different opinions whatever have you. So we've got to keep

1016
01:27:08,940 --> 01:27:14,420
what we got because we'll never get that chance again. So I should hope that's the way of recapturing.

1017
01:27:14,860 --> 01:27:21,140
It's a water source and again, it's for the generation that comes after us. It's our obligation to

1018
01:27:21,140 --> 01:27:25,060
Make sure there's water and like Tony said, let's take a look at all the costs and see what

1019
01:27:25,060 --> 01:27:25,680
could do.

1020
01:27:25,920 --> 01:27:30,320
Look at all the grants, wifey and all the different things and proposition one put them all

1021
01:27:30,320 --> 01:27:30,560
together.

1022
01:27:30,820 --> 01:27:35,140
But today, as the water storage committee has said, partnerships is the only way we're going

1023
01:27:35,140 --> 01:27:36,260
to make it.

1024
01:27:36,260 --> 01:27:38,000
San Jose will have to learn the hard way either.

1025
01:27:38,140 --> 01:27:42,460
They're going to be educated and understand what we're doing because other cities do.

1026
01:27:43,220 --> 01:27:46,520
And we all have the same constituents and Tony said, over and over and over and over.

1027
01:27:46,680 --> 01:27:48,460
It's our obligation to give them water.

1028
01:27:48,720 --> 01:27:49,360
One more time.

1029
01:27:49,360 --> 01:27:55,400
I'm not trying to get a scary picture of society, but I'll tell you, without water, you could imagine.

1030
01:27:55,900 --> 01:28:01,840
And when I hear a person from the Senate, the water company speak and so on, that's what I don't want to hear.

1031
01:28:02,200 --> 01:28:07,020
Because like Tony said, we got to stand up today and make these hard decisions to make sure there's water.

1032
01:28:07,300 --> 01:28:08,240
We've got ours.

1033
01:28:08,620 --> 01:28:12,140
It's the same as today in housing, when I go to meetings, people get up and they go,

1034
01:28:12,240 --> 01:28:17,160
we don't want no more housing and I look at them and I understand the feeling, but then I tell myself,

1035
01:28:17,160 --> 01:28:21,020
How can I tell young people that they can't have the dream that I had?

1036
01:28:21,540 --> 01:28:22,160
I can't.

1037
01:28:22,940 --> 01:28:23,180
I can't.

1038
01:28:23,900 --> 01:28:25,760
I've got to be there and make sure they have water.

1039
01:28:26,020 --> 01:28:27,120
Make sure they have housing.

1040
01:28:27,620 --> 01:28:28,680
They shouldn't live in a creek.

1041
01:28:29,480 --> 01:28:31,580
They should have the same opportunities I have.

1042
01:28:31,860 --> 01:28:32,920
And what's the big issue today?

1043
01:28:33,920 --> 01:28:37,820
Well, if we all should have been, we can make housing and other things a little more reasonable.

1044
01:28:38,320 --> 01:28:39,980
Everybody needs the American dream.

1045
01:28:40,300 --> 01:28:42,420
But first of all, no matter what we do,

1046
01:28:42,420 --> 01:28:48,700
to get folks out of the creek, to bring a quality, you gotta have water. Don't let this opportunity

1047
01:28:48,700 --> 01:28:54,580
slide by folks in regardless of the cost. It's an obligation we have to be neglected to make sure

1048
01:28:54,580 --> 01:28:56,700
our people have water. Thank you.

1049
01:29:03,880 --> 01:29:10,260
Directed with that? Yes, thank you. I'm struggling with

1050
01:29:12,860 --> 01:29:20,900
the new normal of climate change and other investments. So the new normal is what

1051
01:29:20,900 --> 01:29:25,660
we're living in and what we've been living in to the past 10 years. And that's a

1052
01:29:25,660 --> 01:29:32,260
drought. You can have all the storage in the world to pass it if you don't have water

1053
01:29:32,260 --> 01:29:40,240
to put it in the in the reservoir. So my question to step is in the last 20 years.

1054
01:29:41,280 --> 01:29:49,340
to get back the director as the mayor's point the last 20 years look at it. How many times have we

1055
01:29:52,470 --> 01:29:59,550
had went years lost water in the last 20 years how many times have we lost?

1056
01:30:00,000 --> 01:30:07,080
Water, uh, as opposed to being able to put it in the ground or bank it, instead my traffic.

1057
01:30:07,780 --> 01:30:14,960
And we truly lost water, as a gone out to the ocean, or have we been able to bank our contract amount,

1058
01:30:15,480 --> 01:30:19,340
or put it in the ground, uh, in went year.

1059
01:30:29,140 --> 01:30:32,300
I've, uh, attempted to get that question and we might have to answer to a little bit further.

1060
01:30:32,300 --> 01:30:37,900
So, and various times, especially when it's what, you know, as a chair-missionist,

1061
01:30:37,900 --> 01:30:43,340
with a number of things like that, there's significant flows to the bay, and so the

1062
01:30:43,340 --> 01:30:47,060
question would be, is, would you have the infrastructure, or would other things actually

1063
01:30:47,060 --> 01:30:53,780
have been available for us to pull them in, the windows of that time frame are very short, making

1064
01:30:53,780 --> 01:30:57,820
sure that you have the capacity or the infrastructure to capture some of those, and the timing

1065
01:30:57,820 --> 01:31:05,180
it as few and far between. So, just going off of memory here and maybe Steph could help me out

1066
01:31:05,980 --> 01:31:10,820
on with some actual numbers here. When it was very wet, when there's, you know, I hate to say,

1067
01:31:11,600 --> 01:31:15,240
we'll let's not bring up flooding or 2017 or anything like that, but at certain times there is

1068
01:31:15,240 --> 01:31:21,920
available. There is a lot of water available and a lot of it does float to various places. That being said,

1069
01:31:22,200 --> 01:31:27,220
capturing certain flows and being able to do certain things or being able to capture all of it

1070
01:31:27,220 --> 01:31:33,400
are very difficult and very difficult for us to make sure that we have the right places at

1071
01:31:33,400 --> 01:31:37,200
the right time to pull them in. So a lot of the times we're talking about here that would

1072
01:31:37,200 --> 01:31:43,500
be what we'll call the article 21 that the extra water or the things that may be available

1073
01:31:43,500 --> 01:31:48,100
when there are higher flows in the Delta or other places and there are small windows of when

1074
01:31:48,100 --> 01:31:53,820
you can take advantage of it. We've been trying to take advantage of that in the past and where

1075
01:31:53,820 --> 01:31:56,260
their advantages like that in the future with climate change.

1076
01:31:56,520 --> 01:32:02,100
The modeling shows that it's less and less, but it does show that eventually, you know,

1077
01:32:02,200 --> 01:32:05,720
that particular work others would be able to capture and track some of that.

1078
01:32:06,160 --> 01:32:11,580
But you are correct director that it is a smaller and smaller window and we really are just

1079
01:32:11,580 --> 01:32:17,600
trying to capture those final last drops that aren't, let's say earmark for the environment

1080
01:32:17,600 --> 01:32:21,440
and are above and beyond what would normally flow to the bay.

1081
01:32:21,440 --> 01:32:24,940
I don't know staff would like to help me out on many of the numbers.

1082
01:32:25,360 --> 01:32:25,500
Yes.

1083
01:32:25,940 --> 01:32:27,000
It's on May.

1084
01:32:27,400 --> 01:32:27,920
Good job.

1085
01:32:28,340 --> 01:32:28,940
Circulazard.

1086
01:32:29,120 --> 01:32:30,280
Vincent, deputy for Washington.

1087
01:32:30,420 --> 01:32:31,280
Good afternoon, Vincent.

1088
01:32:31,440 --> 01:32:36,260
My understanding is that the question is, how often, in some period of time historically,

1089
01:32:36,680 --> 01:32:40,660
have we been unable to exercise the opportunity to capture excess water?

1090
01:32:41,440 --> 01:32:47,620
There are two answers that one is the modeling theoretical modeling and one is the

1091
01:32:47,620 --> 01:32:51,360
actual dates where we had surplus water available to us.

1092
01:32:51,360 --> 01:32:57,820
But we couldn't take delivery and store that because we did not have the available volume of storage.

1093
01:32:58,620 --> 01:33:04,000
So for the, I think we'll probably need to research out the more to make sure we can actually respond.

1094
01:33:04,540 --> 01:33:16,320
But the general question, Cindy, how are important water manager has some of the plans and thoughts on what years and how often anecdotally we've been able to capture or not capture that surplus water.

1095
01:33:16,320 --> 01:33:19,440
My understanding is most time we have been,

1096
01:33:19,440 --> 01:33:21,060
but there may be a few incidents that we have been.

1097
01:33:21,580 --> 01:33:23,500
And after that, I'd like to see if sand has

1098
01:33:23,500 --> 01:33:25,360
some perspective on our modeling.

1099
01:33:25,720 --> 01:33:28,240
The theoretical, 40 years, I believe,

1100
01:33:28,260 --> 01:33:29,700
40 something years of data, half

1101
01:33:29,700 --> 01:33:31,560
and that could occur in the model.

1102
01:33:32,320 --> 01:33:34,600
So that, if it's a meaningful church,

1103
01:33:34,780 --> 01:33:36,040
I'd like to turn the floor to send it to you.

1104
01:33:38,660 --> 01:33:41,600
Yeah, so I don't have the specific dates.

1105
01:33:41,620 --> 01:33:42,800
I'd have to research them.

1106
01:33:42,980 --> 01:33:45,400
But in based on my memory over the past 10 years,

1107
01:33:45,400 --> 01:33:51,180
have in a couple of years, the white years, where we were not able to take the flood flows

1108
01:33:51,180 --> 01:33:57,300
article 21 water in that area, and they had spoken about because we didn't have a place to

1109
01:33:57,300 --> 01:34:04,200
story. And we did lose some carrier, we did still carry over that we had stored in San Luis Reservoir

1110
01:34:05,000 --> 01:34:11,700
during a wet year, during a wet winter once or twice because we didn't have a place to put it.

1111
01:34:11,700 --> 01:34:22,780
So it does happen if the future results in more intense winters and periods where precipitation

1112
01:34:22,780 --> 01:34:28,880
is concentrated, then that could happen more frequently, if we invest in the Delta Command

1113
01:34:28,880 --> 01:34:32,860
facility, that could happen more frequently as well.

1114
01:34:34,740 --> 01:34:40,340
So thank you very much. That's what I thought based on what I've read,

1115
01:34:40,340 --> 01:34:46,500
is that it isn't that we're because we don't have storage. We're losing water to the bay,

1116
01:34:46,640 --> 01:34:52,660
we're losing this opportunity. It's it's slim and it's getting slimmer particularly with the new normal.

1117
01:34:52,660 --> 01:34:56,120
So having said that, what,

1118
01:34:58,180 --> 01:34:59,980
what, how much more?

1119
01:35:00,000 --> 01:35:18,880
On an interest in most precarious, could we get, if it's valid, you know, storage capacity, what we would be able to store there, if we took the investment, we were going to make it to check it out and move it into an investment into most precarious.

1120
01:35:21,000 --> 01:35:25,320
Are we even able to buy more space in most precarious at this point?

1121
01:35:28,480 --> 01:35:37,100
We do have those precursors team on the call, and right now we've been primarily looking at those precursors to the operational flexibility of the deafening sense for line.

1122
01:35:37,880 --> 01:35:42,400
But there is a belief still opportunity to increase storage.

1123
01:35:43,300 --> 01:35:47,440
The dedicated storage in LVED was for Carol's expansion project.

1124
01:35:48,620 --> 01:35:50,660
It is a little bit different.

1125
01:35:51,220 --> 01:35:53,260
The location is north of Delta.

1126
01:35:53,920 --> 01:36:02,020
So it's not, obviously the storage is always valuable, but I just want to just mention that it's so difficult to have direct apples to apples comparison.

1127
01:36:02,660 --> 01:36:09,520
But we do have opportunity to invest further in the LDE dedicated storage.

1128
01:36:10,360 --> 01:36:12,300
And with that Sam, I see you're online.

1129
01:36:12,440 --> 01:36:14,220
You're going to be able to have anything to add to that.

1130
01:36:16,740 --> 01:36:19,540
Yes, we can invest further in it.

1131
01:36:19,540 --> 01:36:22,720
reaching the same if we're hoping for 100,000

1132
01:36:22,720 --> 01:36:25,880
acre feet of valley water storage space.

1133
01:36:26,540 --> 01:36:28,360
We couldn't reach that same amount,

1134
01:36:28,540 --> 01:36:29,980
although what I've been hearing is we are

1135
01:36:29,980 --> 01:36:31,940
hoping for partnerships in Bacheco.

1136
01:36:32,960 --> 01:36:36,320
So we could potentially match it, match it,

1137
01:36:36,400 --> 01:36:39,540
uh, apologies, match the storage that we get in

1138
01:36:39,540 --> 01:36:40,300
when we can't remember.

1139
01:36:41,060 --> 01:36:42,900
But that all depends on how much we were

1140
01:36:42,900 --> 01:36:44,060
holding out in Bacheco.

1141
01:36:45,900 --> 01:36:48,620
Right. And to the point about it,

1142
01:36:48,620 --> 01:36:53,540
want to do Delta, it bypasses the pumps because of the transfer of Bethany pipeline,

1143
01:36:55,760 --> 01:36:55,760
right?

1144
01:36:57,640 --> 01:37:00,060
So there is a Bethany transfer.

1145
01:37:02,400 --> 01:37:03,400
And that's why I'm in favor.

1146
01:37:04,860 --> 01:37:10,820
So, you know, like I said, this is where I'm struggling with, you know,

1147
01:37:11,000 --> 01:37:12,940
wet ears that aren't going to be happening.

1148
01:37:12,940 --> 01:37:20,600
They'll be happening, but history shows that we haven't been losing that abilities to store.

1149
01:37:21,380 --> 01:37:27,840
We could boost our investment in low-specarols, but what it was supposed to get the same amount

1150
01:37:27,840 --> 01:37:30,680
at a Chaco, at a less cost.

1151
01:37:31,400 --> 01:37:37,420
And then whatever other money we didn't put into the Chaco, we just put into recycled water

1152
01:37:37,940 --> 01:37:42,320
and boost that capacity and talk about new water, tell me there's your new water.

1153
01:37:42,320 --> 01:37:47,440
Yeah, well, you know, you know, this is where I'm struggling, you know, I know it's not

1154
01:37:47,440 --> 01:37:47,700
apples.

1155
01:37:47,700 --> 01:37:50,100
The struggle we've been having with the city of San Jose.

1156
01:37:50,760 --> 01:37:55,880
But what it's, but it's, you know, I think we have a real opportunity with the most

1157
01:37:55,880 --> 01:38:05,800
of the carols and it's, it just seems to make more sense for the investment they are for

1158
01:38:05,800 --> 01:38:12,300
the amount of storage we would get, particularly if we're going to look for partners to, you

1159
01:38:12,300 --> 01:38:14,880
that we will have available to us in the checkup.

1160
01:38:15,560 --> 01:38:18,880
So at this point, I'm still listening, studying,

1161
01:38:19,560 --> 01:38:23,320
and I just wanted to voice my struggles and my concerns

1162
01:38:23,900 --> 01:38:27,960
about investing here versus most most precarious.

1163
01:38:28,160 --> 01:38:29,820
We're doubling our investment in post precarious.

1164
01:38:31,420 --> 01:38:36,080
And just the correction, I'm not opposed to the precarious.

1165
01:38:38,600 --> 01:38:40,080
Well, I can see that.

1166
01:38:40,180 --> 01:38:42,320
What I was saying is that, you know,

1167
01:38:42,320 --> 01:38:45,580
their new water can be made at a recycled water,

1168
01:38:45,900 --> 01:38:49,600
but if we switch the investment from Chaco to Losta Terrace,

1169
01:38:50,600 --> 01:38:52,740
we could potentially get the same additional storage

1170
01:38:52,740 --> 01:38:56,200
that we want, and maybe at a cheaper cost.

1171
01:38:57,020 --> 01:38:59,260
And like I said, we can have all the storage in the world,

1172
01:38:59,420 --> 01:39:02,320
but if we don't have the water to put in it,

1173
01:39:02,460 --> 01:39:04,860
and with climate change and new normal,

1174
01:39:05,660 --> 01:39:07,140
you know, I'm just wondering,

1175
01:39:08,120 --> 01:39:10,580
Losta Terrace is gonna happen when the word involves or not,

1176
01:39:10,580 --> 01:39:17,220
But, you know, for us to lead on Cacheco when we could get the same banking for the

1177
01:39:17,220 --> 01:39:21,820
bucket out of, or similar, at a part-ringing loss of care, so it's going to happen anyway.

1178
01:39:22,600 --> 01:39:26,580
I just think that's a more attractive group of go.

1179
01:39:26,580 --> 01:39:27,420
That may be.

1180
01:39:28,560 --> 01:39:29,360
Do you have any other centres?

1181
01:39:32,190 --> 01:39:32,430
What?

1182
01:39:33,130 --> 01:39:33,350
What?

1183
01:39:33,350 --> 01:39:33,770
Oh, I'm sorry.

1184
01:39:33,950 --> 01:39:34,270
Yes.

1185
01:39:34,750 --> 01:39:35,790
Somebody else go ahead, Tom.

1186
01:39:36,290 --> 01:39:37,130
Would the vice chair next?

1187
01:39:37,730 --> 01:39:38,170
I'm sorry.

1188
01:39:38,270 --> 01:39:38,710
Yeah, go ahead.

1189
01:39:38,930 --> 01:39:39,610
I'm sorry.

1190
01:39:39,890 --> 01:39:40,610
Vice chair next.

1191
01:39:40,610 --> 01:39:41,350
You're

1192
01:39:44,290 --> 01:39:45,690
on mute by sugar.

1193
01:39:47,290 --> 01:39:48,890
You're on mute.

1194
01:39:48,890 --> 01:39:49,670
You're on mute.

1195
01:39:49,670 --> 01:39:49,910
You're on mute.

1196
01:39:50,410 --> 01:39:50,750
You're on mute.

1197
01:39:50,750 --> 01:39:53,050
A couple of comments on this.

1198
01:39:53,190 --> 01:39:56,290
I think the unorl is just natural.

1199
01:39:56,830 --> 01:39:59,870
The unorl is everything.

1200
01:40:00,000 --> 01:40:06,260
I'll see this, it's about volatility, you know, when are winter's drier summer, is it cool?

1201
01:40:07,120 --> 01:40:21,660
And that's the challenge, you know, especially with more precipitation, the biggest thing I know in the modeling for the conveyance project is the snow tap melting sooner.

1202
01:40:21,660 --> 01:40:28,100
And that actually reduces the storage, so we're going to see more spills, not less spills.

1203
01:40:29,620 --> 01:40:35,200
And in a way, our storage is going down, whether it be on the state side is a federal side.

1204
01:40:36,060 --> 01:40:40,700
So even if we did this project, it's not like an additional storage, it's just kind of working contract.

1205
01:40:41,120 --> 01:40:43,860
That's, we're keeping pace with number one.

1206
01:40:43,860 --> 01:40:50,300
So that's what the models from DSA, they spent a lot more money on it than we have.

1207
01:40:50,600 --> 01:40:55,700
Number two is respect the article, 21, I think the article is staff, but if there's a detailed

1208
01:40:55,700 --> 01:41:05,600
article article on article 21, it may have been no book, April 5th, 2018, about article 21.

1209
01:41:05,600 --> 01:41:13,680
And they talk about how it's because of the flashiness, but you know pictures of, you know,

1210
01:41:14,040 --> 01:41:17,980
Sacramento and other places flooding all the time, that's what happens with Art of the 21.

1211
01:41:18,940 --> 01:41:20,360
So we don't need it every year.

1212
01:41:20,660 --> 01:41:23,640
It's just enough years to fill it.

1213
01:41:24,560 --> 01:41:33,020
With respect to our game, demand projections, it's interesting that, you know, we have one set of demand projections.

1214
01:41:33,020 --> 01:41:38,840
historical is staff told us that the meeting that just happened before, but the elected

1215
01:41:38,840 --> 01:41:44,320
almost uniformly said otherwise that they said the man will be going up because of the

1216
01:41:44,320 --> 01:41:51,900
arena numbers and other needs which from what I heard are not part of our model. We basically

1217
01:41:51,900 --> 01:41:54,080
take historical numbers.

1218
01:41:56,360 --> 01:41:59,520
So there might be some issues and is it really going down whether we need

1219
01:41:59,520 --> 01:42:04,020
are not so. And the final thing is, I think there's still a lot of

1220
01:42:04,020 --> 01:42:09,280
cost and certainty in Las Vicaris. Another water district director emailed me

1221
01:42:09,280 --> 01:42:15,300
today saying he thinks the costs are really two X. What they're saying and he

1222
01:42:15,300 --> 01:42:19,980
gave a detailed explanation of what the reimbursements will be, which isn't

1223
01:42:19,980 --> 01:42:24,340
part of the model that's been shared. So how do the Las Vicaris is a

1224
01:42:24,340 --> 01:42:27,180
And I support it, but not PNC.

1225
01:42:30,310 --> 01:42:31,250
Eric Santos?

1226
01:42:32,170 --> 01:42:32,850
Yes, Mr. Chair.

1227
01:42:32,930 --> 01:42:33,630
Thank you.

1228
01:42:33,770 --> 01:42:37,950
To the point of director Lizat speaking on us for Kerosene,

1229
01:42:38,090 --> 01:42:39,250
that it's going to be a done deal.

1230
01:42:39,810 --> 01:42:40,590
I don't disagree.

1231
01:42:42,330 --> 01:42:44,930
The water storage committee has taken a look at this very carefully.

1232
01:42:45,810 --> 01:42:48,190
And as one member, I support that.

1233
01:42:48,410 --> 01:42:50,890
It's the words, the other words you use about recycling,

1234
01:42:51,210 --> 01:42:55,150
so I don't disagree where you take the funding and just put it over there.

1235
01:42:55,150 --> 01:42:59,210
over there is going to be partnerships also. That's why I don't want to lose sight with the

1236
01:42:59,210 --> 01:43:03,990
Pacheco. Let's keep on pursuing the potential partnership because of the benefits it brings.

1237
01:43:04,490 --> 01:43:09,850
But I do agree with you and their storage committee is discussed as very clearly. I really believe

1238
01:43:09,850 --> 01:43:15,890
the list of the kiddos is a good, another good partnership and I believe regulatory and with the

1239
01:43:15,890 --> 01:43:20,890
state and everything is going to be done. So we have a great opportunity and I know that we're

1240
01:43:20,890 --> 01:43:25,910
supporting that not we haven't taken official vote but I would agree with you and I think

1241
01:43:25,910 --> 01:43:30,150
other board members here for the same we should tap into that to make sure our generation

1242
01:43:30,150 --> 01:43:38,670
has a supply all the time but again please we need to take a look at state federal infrastructure

1243
01:43:38,670 --> 01:43:42,870
all these things are going on we got a chance and then with private partnerships to make

1244
01:43:42,870 --> 01:43:47,790
the Czecho reality also but the priority would be yeah I think we should go over there and hook

1245
01:43:47,790 --> 01:43:53,470
but let's forget us due to the partnerships that I believe have enough pool. I think statewide

1246
01:43:53,470 --> 01:43:58,720
politically-wise it's going to go and we need to be part of it.

1247
01:43:58,800 --> 01:44:01,080
Director of the Red Love, the Duke.

1248
01:44:02,420 --> 01:44:06,100
Thank you. So, I want to start with the China and on that as well as the

1249
01:44:06,100 --> 01:44:11,560
graphic schools. We've had through our water storage committee meetings. We have multiple meetings

1250
01:44:11,560 --> 01:44:17,180
where their staff and their leadership attend our meeting and give us constant updates

1251
01:44:17,180 --> 01:44:22,360
as to where they are and the questions that we ask in the reference to cost sharing, etc.

1252
01:44:23,240 --> 01:44:28,680
You know, everything is a work in progress. We're all working through these issues in our

1253
01:44:28,680 --> 01:44:35,020
different service areas. But we look at it, I guess I'm speaking for myself and I think I'm

1254
01:44:35,020 --> 01:44:40,920
speaking for the committee that this would be an ideal continuation of a partnership agreement

1255
01:44:40,920 --> 01:44:48,080
across the campus. Any water storage agreement that's on the table today, inside of

1256
01:44:48,080 --> 01:44:53,840
outside Santa Clara County, we must look at it and consider it. You know, we talked

1257
01:44:53,840 --> 01:44:58,600
about sites, we want to be part of the governance, if that's going to be the case to be part

1258
01:44:58,600 --> 01:44:59,200
of that project.

1259
01:45:00,000 --> 01:45:24,760
These are happening up and down the state. When we attend the Assembly's Delta Mendoza Water Authority, which are primarily central valley water managers, irrigation districts, and agriculture, we listen to all their issues in regards to the sigma and all the different water costs that they're incurring for the farmers, et cetera, from current county up to Sacramento and beyond.

1260
01:45:24,760 --> 01:45:31,540
So, we have a really good understanding as to what's going on with cost and water supply and partnerships.

1261
01:45:32,800 --> 01:45:37,840
So, I think from our perspective, we continue the conversation with the Loss of Kettos,

1262
01:45:38,360 --> 01:45:42,880
and moving towards an ideal working relationship with that organization.

1263
01:45:43,560 --> 01:45:45,980
There are fine group of people that work with, but they're just like us.

1264
01:45:46,240 --> 01:45:46,940
They're no different.

1265
01:45:47,720 --> 01:45:53,120
We're in a competitive market, and we're all looking to maybe, I'll do the other guy.

1266
01:45:54,260 --> 01:45:56,840
But the bottom is, we all have to fly ball together.

1267
01:45:57,760 --> 01:45:57,860
We have to.

1268
01:45:57,860 --> 01:45:58,820
We have no choice.

1269
01:45:59,420 --> 01:46:00,500
Well, we do have a choice.

1270
01:46:01,080 --> 01:46:02,120
But it's not a good choice.

1271
01:46:02,480 --> 01:46:03,960
To have to pay for many of these opportunities,

1272
01:46:04,900 --> 01:46:06,480
I wouldn't support that at all.

1273
01:46:07,000 --> 01:46:07,840
We need these partnerships.

1274
01:46:08,000 --> 01:46:09,120
We want to encourage them.

1275
01:46:10,460 --> 01:46:13,120
And support 100%.

1276
01:46:14,460 --> 01:46:16,040
That's my position.

1277
01:46:17,660 --> 01:46:18,360
Derek Deschua.

1278
01:46:19,920 --> 01:46:20,480
Thank you, Chair.

1279
01:46:20,480 --> 01:46:31,940
I appreciate hearing my colleagues comment, I think they're all very good, and I just

1280
01:46:31,940 --> 01:46:39,040
want to add one more thing that talking about planning for the future, this is our

1281
01:46:39,040 --> 01:47:02,440
And in the 1931, or I think 31, that people in this county doing the depression, the greatest depression of United States history, voted to tax themselves to build all these reservoirs.

1282
01:47:02,440 --> 01:47:05,440
So this is in addition to the chair,

1283
01:47:05,620 --> 01:47:07,640
I just mentioned about how the governor at the time

1284
01:47:07,640 --> 01:47:09,280
and then built everything for the California.

1285
01:47:09,820 --> 01:47:13,040
But then we're seeing the county doing the depression

1286
01:47:13,040 --> 01:47:17,760
people voted to tax themselves so that we have

1287
01:47:17,760 --> 01:47:20,520
Anderson Reservoir, Colorado Reservoir,

1288
01:47:20,720 --> 01:47:25,920
all that recharge pump and the entire system.

1289
01:47:27,180 --> 01:47:29,220
As I said, when I talk to people,

1290
01:47:29,220 --> 01:47:31,260
I always tell people that it's not me

1291
01:47:31,260 --> 01:47:38,420
more about, I don't think I'll live to the date, when we don't have water, but then we're

1292
01:47:38,420 --> 01:47:47,480
really planning for our children and children. So with that said, I just want to provide

1293
01:47:47,480 --> 01:47:56,440
my personal opinion about these board policy decisions that staff asks us to bring it to some

1294
01:47:56,440 --> 01:48:03,300
of, uh, I guess conclusion. Uh, so staff asks us that, uh, can, can we have that slide

1295
01:48:03,300 --> 01:48:04,680
sound? This is the last slide.

1296
01:48:09,460 --> 01:48:13,240
Okay. So first, first bullet is, does it make sense to

1297
01:48:13,240 --> 01:48:18,320
continue including particular reservoir, uh, in one of the supply mass plants? So my personal opinion is,

1298
01:48:18,620 --> 01:48:24,060
yes. Uh, and then, are there, uh, predetermined triggers that require that project be, uh,

1299
01:48:24,180 --> 01:48:30,520
re validated by the board of directors, uh, time partnership, uh, cost schedule, etc. I would say,

1300
01:48:30,520 --> 01:48:56,340
of the above, and in addition to the annual monitoring and plant form, while there is a schedule building that, look at that, look at while there's a plant master plant every year, but then in between anything that's staff consider it's a key factor.

1301
01:48:56,340 --> 01:49:01,820
the board should get a briefing and discussion on that.

1302
01:49:02,760 --> 01:49:07,600
And then the third vote, what level of partnership participation should be assumed for financial

1303
01:49:07,600 --> 01:49:08,780
planning purposes.

1304
01:49:10,520 --> 01:49:18,820
I would recommend that for the particular reservoir that's putting a

1305
01:49:20,990 --> 01:49:21,970
assumption has more

1306
01:49:21,970 --> 01:49:28,490
on the conservative side, because if we're committed to doing

1307
01:49:28,490 --> 01:49:38,390
this project, we should not, I mean, I would say it's my personal opinion that painting a nicer picture

1308
01:49:38,390 --> 01:49:50,710
at this time, I think it may mislead our constituents that I would prefer that a more conservative

1309
01:49:50,710 --> 01:49:58,290
assumption be putting to the financial planning for the financial planning purpose, but also

1310
01:49:58,290 --> 01:49:59,810
So that I think...

1311
01:50:00,000 --> 01:50:25,660
I think that going back to chair's comment earlier that we need to have a discussion about what is the rate that we're willing to pay so that all these opportunities that all the board members just talked about can be looked at.

1312
01:50:25,660 --> 01:50:36,000
that if the money that's invested for a Pacheco, maybe it can be divided into other parts.

1313
01:50:37,240 --> 01:50:47,020
So no matter what this future is going to look like, it goes back to Chair's comment earlier that what is that

1314
01:50:47,020 --> 01:50:53,340
receiving of rates that we are willing to support.

1315
01:50:54,400 --> 01:51:02,220
So I would request that's part of the discussion on the ongoing basis.

1316
01:51:02,820 --> 01:51:09,460
So that would be my personal opinion related to staff as these board policy decisions.

1317
01:51:11,100 --> 01:51:11,720
Thank you.

1318
01:51:11,720 --> 01:51:12,960
Thank you, Director Shua.

1319
01:51:12,960 --> 01:51:14,820
But I think that's a good idea.

1320
01:51:15,040 --> 01:51:19,440
I'll just start from this trip one and go through the list

1321
01:51:19,440 --> 01:51:20,920
and then we can get some feedback.

1322
01:51:21,340 --> 01:51:30,840
But let me just ask, it staff might have some feeling

1323
01:51:30,840 --> 01:51:34,000
about what level of partnership participation

1324
01:51:38,000 --> 01:51:40,760
will lower water rates significantly,

1325
01:51:41,700 --> 01:51:46,360
or if you could give us some indication of what the number might be.

1326
01:51:47,080 --> 01:51:50,660
If you can, I know this is, you know, all the cuff is hard for you to do.

1327
01:51:50,700 --> 01:51:55,540
I don't know if they're in, you guys have discussed this.

1328
01:51:59,050 --> 01:52:04,670
Director of Jamera, the Christians have the slide that shows the sort of the sliding scale.

1329
01:52:05,070 --> 01:52:05,090
Yes.

1330
01:52:05,090 --> 01:52:10,170
Well, we have with the rate projection increases in the North Counties on W2 with different

1331
01:52:10,170 --> 01:52:15,170
levels of partnership participation. Right there in the middle of this slide shows the current

1332
01:52:15,170 --> 01:52:23,310
assumption that's included in the staff recommendation for F522. It seems 20%. Partnership

1333
01:52:23,310 --> 01:52:27,810
participation and that was based on board of directions from a couple of years ago hasn't

1334
01:52:27,810 --> 01:52:35,330
changed since then and that's what derives the 9.6% rate projection that we currently have.

1335
01:52:35,330 --> 01:52:45,330
Now, if we were to go higher, you see the end of the scale there is 38.5%, and that would take that rate projection down to 8.8%.

1336
01:52:46,550 --> 01:52:56,770
And so you can kind of get a feel for the difference that that higher level of partnership participation would make if that helps answer that question.

1337
01:52:56,770 --> 01:53:06,050
It does. Thank you. Yeah, I wanted it for the discussion, so I thank you. I think that we all see then we can all see that.

1338
01:53:06,410 --> 01:53:20,950
Okay, so if I made let me go through with that as I direct to sure suggested and get some feedback we have we can go back to that list on page two or 17 there on the attachment.

1339
01:53:20,950 --> 01:53:25,450
So, let's start with Director Morella and I'll just go down the line, how's that?

1340
01:53:29,710 --> 01:53:30,730
Director Morella, you're on mute.

1341
01:53:31,030 --> 01:53:31,650
Okay, got it.

1342
01:53:31,670 --> 01:53:32,110
Thank you.

1343
01:53:32,330 --> 01:53:32,590
That's sure.

1344
01:53:32,830 --> 01:53:38,050
Listen, first and foremost, I think it's quite obvious to face on my previous statements that

1345
01:53:38,050 --> 01:53:43,870
I'm 100% for this project and I think it's important that we take that position.

1346
01:53:44,770 --> 01:53:47,630
Are you asking me to go through each one of these bullet points on the board?

1347
01:53:47,810 --> 01:53:48,790
What do you want?

1348
01:53:49,090 --> 01:53:49,270
Yes.

1349
01:53:52,370 --> 01:53:54,990
Whatever you say, it could be yes or no, it could be whatever you say.

1350
01:53:54,990 --> 01:53:56,410
No problem.

1351
01:53:57,590 --> 01:54:00,870
Where does the particular reservoir expansion project get into the water supply master plan?

1352
01:54:01,490 --> 01:54:04,310
I think it should be one of the top priority issues on the master plan.

1353
01:54:05,150 --> 01:54:10,070
The pre-determined triggers that require the project revalidated by the Board of Directors,

1354
01:54:10,590 --> 01:54:12,610
time, partnership, participation, cost, schedule, etc.

1355
01:54:12,990 --> 01:54:16,310
I think that's what we've just been discussing for the last potential hour.

1356
01:54:16,750 --> 01:54:17,030
So yes.

1357
01:54:17,830 --> 01:54:22,070
And one level of partnership participation should be assumed for financial planning purposes.

1358
01:54:22,070 --> 01:54:40,010
Again, continuation of discussion that we're having with the community, with our public hearings as we did today with the water commission, to continue that process and have the final discussion and meet as we will be making those decisions, but I support all in front of us as to move this project forward.

1359
01:54:40,910 --> 01:54:42,250
Thank you. Director Kiga.

1360
01:54:42,250 --> 01:54:43,030
First

1361
01:54:46,390 --> 01:54:59,710
I'd like to thank staff for a very comprehensive presentation and for thank my fellow board members for a good discussion on this topic.

1362
01:55:00,180 --> 01:55:30,160
This is obviously a very important potential project to the district, and I think we have all expressed interest in the project and at the same time understanding that the devil is in the details, and so I think in particular, we all have to feel responsibility because the board members that are going to be involved with implementation of this project are not

1363
01:55:30,160 --> 01:55:35,940
to be the same board members that are here today and saying let's go forward with this.

1364
01:55:36,600 --> 01:55:45,020
So, I do think that the Bichaco Reservoir Expansion Project belongs in our current

1365
01:55:45,020 --> 01:55:52,840
water supply master plan. And I also think that we need more information,

1366
01:55:52,840 --> 01:56:19,520
It's given us good information, but we really need to know more of the details, the permitting issues, the part simplifications, the cost, and so that's already moving in that direction, and that's a positive thing, and so that's part of what I really think is going to be important to bring back to the board as more information becomes available.

1367
01:56:19,520 --> 01:56:26,640
And, you know, I don't really, I don't really have a, a good sense of what level of partner

1368
01:56:26,640 --> 01:56:34,940
participation should be assumed that this time, I think, you know, I'm going to ask staff

1369
01:56:34,940 --> 01:56:38,400
to use their best judgment in terms of doing that.

1370
01:56:38,760 --> 01:56:49,500
I certainly just want to make clear, I think it would be very premature to, for us to say that

1371
01:56:49,500 --> 01:56:53,580
that we're not interested in pursuing this project or that they're not going to budget for.

1372
01:56:53,680 --> 01:56:58,900
And I agree with the comments about what we hear from the water commission.

1373
01:56:59,160 --> 01:57:03,320
We've all been, you know, word representatives of the water commission.

1374
01:57:03,840 --> 01:57:06,400
Some of you right now, some of us in the past.

1375
01:57:07,040 --> 01:57:09,440
And what we always hear is, well, we want you to do this.

1376
01:57:09,600 --> 01:57:12,800
And we want recycled water and want environmental enhancements.

1377
01:57:12,800 --> 01:57:14,520
And we want, you know, a gazillion things.

1378
01:57:15,060 --> 01:57:16,760
And we don't want to pay any more money.

1379
01:57:16,760 --> 01:57:25,200
and those are incompatible goals and so and also it's it's short-term thinking to just be

1380
01:57:25,200 --> 01:57:32,160
looking at we want to keep water rates as low as possible when we need to ensure that we have a

1381
01:57:32,160 --> 01:57:41,420
supply for the future including having the ability to you know have water supply for you know

1382
01:57:42,380 --> 01:57:48,860
housing, housing for that next generation, and also to be able to support, you know, a healthy

1383
01:57:48,860 --> 01:57:54,540
economy and having employers staying in the area. So those are my thoughts at this time.

1384
01:57:54,720 --> 01:57:55,420
So thank you.

1385
01:57:56,120 --> 01:57:57,560
Thank you, thank you. There at the TV.

1386
01:57:58,420 --> 01:58:02,880
Yeah, thank you Mr. Chair. Yeah, the first two is yes, and then the last one is the board

1387
01:58:02,880 --> 01:58:07,520
board determines we're going to continue getting information and look at what the best

1388
01:58:07,520 --> 01:58:09,220
partnership that we need to seek.

1389
01:58:10,660 --> 01:58:16,000
Director Lizard, thank you, Director Santos, Director Santos, Director Lizard.

1390
01:58:17,160 --> 01:58:24,400
Yes, so the first one, yeah, but I'd like to staff to come back with a memo.

1391
01:58:25,900 --> 01:58:27,180
So make this a BMR.

1392
01:58:27,800 --> 01:58:34,840
I like to know what the last 20 to 40 years had shown, but let's just do 20 make it easy.

1393
01:58:34,840 --> 01:58:53,140
I show them with regard to those wet years when we allegedly lost the ability to store as much as we wanted to and how many acre feet did we, in fact, not only not able to store or to be lose.

1394
01:58:53,140 --> 01:59:07,460
And then, secondarily, what would be the tipping point on our partnership participation,

1395
01:59:08,640 --> 01:59:17,940
where I think Cindy alluded to this, where if our partnership participation was high,

1396
01:59:17,940 --> 01:59:27,420
And then we would have the ability ourselves to access the storage of a Jacob that we could get in

1397
01:59:27,420 --> 01:59:30,480
most of the carols if we invested heavily in most of the carols.

1398
01:59:30,740 --> 01:59:38,780
So where's that tipping point of partnership participation where we have the exact same storage

1399
01:59:38,780 --> 01:59:45,640
and most of the carols if we could get it versus what the amount of storage we would have if we had

1400
01:59:45,640 --> 01:59:48,040
high partnership participation.

1401
01:59:49,560 --> 01:59:52,840
So that was a yes for number one without that request for information.

1402
01:59:54,020 --> 01:59:59,880
Number two, the triggers I'd like to see to bring back information to us would be aware.

1403
02:00:00,000 --> 02:00:07,320
The partnership participation, whether it's lower-high, and then the costs, whether they were increasing or decreasing.

1404
02:00:08,960 --> 02:00:14,360
And you know how that affected our investment level.

1405
02:00:14,920 --> 02:00:24,000
And then the level of partnership participation to be assumed. I think staff has assumed conservative, which is where you are right now.

1406
02:00:24,000 --> 02:00:29,120
And I think that's probably good for now.

1407
02:00:29,420 --> 02:00:34,460
I think we obviously, what is higher level of partnership

1408
02:00:34,460 --> 02:00:35,960
participation is possible.

1409
02:00:36,760 --> 02:00:38,280
But as far as assuming right now,

1410
02:00:38,460 --> 02:00:43,000
I think it needs to be conservative as the staff has suggested.

1411
02:00:43,760 --> 02:00:45,860
Thank you.

1412
02:00:45,880 --> 02:00:47,340
Thank you, Director Lizard.

1413
02:00:48,600 --> 02:00:49,120
Thank you.

1414
02:00:52,370 --> 02:00:53,050
Okay.

1415
02:00:53,470 --> 02:00:54,070
A vice chair?

1416
02:00:58,260 --> 02:01:00,020
Are you sure you're on mute?

1417
02:01:00,280 --> 02:01:01,260
I know, I know, I know.

1418
02:01:02,280 --> 02:01:05,000
So the answer to the questions doesn't make sense to include

1419
02:01:05,000 --> 02:01:07,560
in the master plan, yes.

1420
02:01:08,460 --> 02:01:10,560
Are there predetermined triggers?

1421
02:01:12,660 --> 02:01:14,600
I'm not sure we have to set those up front,

1422
02:01:14,840 --> 02:01:18,240
but I think we need to frequently bring this back.

1423
02:01:18,260 --> 02:01:22,460
I think to me, it would be, you know, at the end of the day,

1424
02:01:22,660 --> 02:01:26,240
it's about costs of our share.

1425
02:01:26,240 --> 02:01:30,760
So that's both a combination of the share, the cost of the project,

1426
02:01:32,880 --> 02:01:39,620
and I want to talk about that in a second, and what partners we get, what level of participants would be assumed.

1427
02:01:39,980 --> 02:01:48,240
You know, I think something like 30% I think director, maybe director or else I think, I think staff's pretty conservative on that.

1428
02:01:48,240 --> 02:01:54,140
To me, I'd like to couple this with kind of moving our legislative priority, some priorities,

1429
02:01:54,500 --> 02:01:59,260
we go get some look at infrastructure money, because that will lower cost.

1430
02:01:59,680 --> 02:02:02,900
Discussions with the state are how we can grab some of these costs.

1431
02:02:03,280 --> 02:02:09,340
Prop one projects and look at who else is not going to make it, because there are some other people that might not make it.

1432
02:02:09,420 --> 02:02:14,820
And then move out the part discussion as a priority, because we can say $200 million,

1433
02:02:15,280 --> 02:02:21,320
and we can be a hero of these communities by providing recreation that would be great.

1434
02:02:21,740 --> 02:02:28,520
And then with respect to the partnership discussions, I'd like us to start reporting those

1435
02:02:28,520 --> 02:02:32,740
on a monthly basis. So we know where things are going, maybe every other report meeting, we have an

1436
02:02:32,740 --> 02:02:38,500
item on this. So that's what I have, and I'm maybe made the last step on the form of emotion,

1437
02:02:38,700 --> 02:02:44,080
look at some future. Thank you, Vice Chair. So yeah, you requested to make motion.

1438
02:02:44,080 --> 02:02:50,220
and I think that were to show it did, so I'll give back to you and I basically agree with

1439
02:02:50,220 --> 02:02:56,160
the vice chair, although I think that the level of partnership participation should be

1440
02:02:56,160 --> 02:03:05,360
increased pretty significantly. I'd like to see it at at the 30% to 38%, but maybe 30% is okay.

1441
02:03:06,080 --> 02:03:11,340
Now for two reasons, one is if we don't have the adequate partnerships, I don't think we should

1442
02:03:11,340 --> 02:03:22,440
the project. Secondly, I don't think that is positive for us to carry and what I think

1443
02:03:22,440 --> 02:03:32,980
is a two conservative number on our water rate projections. People react to those projections

1444
02:03:33,960 --> 02:03:40,200
and what I'm hearing is that they're not really realistic but with respect to this particular

1445
02:03:40,200 --> 02:03:48,260
But not only that, like I said, if we can't reach greater partnership participation, we probably shouldn't do this project.

1446
02:03:48,560 --> 02:03:52,820
I mean, it's just, it's just too heavy to live for us.

1447
02:03:53,840 --> 02:03:55,160
So those are my comments.

1448
02:03:56,380 --> 02:04:01,860
And so I'll take advice chairs to take the first shot at emotion.

1449
02:04:02,920 --> 02:04:04,080
And then we'll take it from there.

1450
02:04:04,140 --> 02:04:05,720
People want to mend it and so on.

1451
02:04:06,160 --> 02:04:08,000
We can, I'm happy to call on everybody.

1452
02:04:08,000 --> 02:04:09,940
So, vice chair, you can start.

1453
02:04:10,200 --> 02:04:11,960
Well, actually, director is way ahead of motion.

1454
02:04:12,200 --> 02:04:13,000
Okay, director.

1455
02:04:13,520 --> 02:04:14,380
Okay, director.

1456
02:04:14,800 --> 02:04:15,120
Director.

1457
02:04:17,360 --> 02:04:19,120
I don't have a motion.

1458
02:04:20,000 --> 02:04:21,400
I was just expressing my.

1459
02:04:22,340 --> 02:04:23,100
So, I'm fine.

1460
02:04:25,610 --> 02:04:26,130
Good, vice chair.

1461
02:04:26,130 --> 02:04:26,790
You need a motion.

1462
02:04:27,150 --> 02:04:29,030
Or is it just direction to staff?

1463
02:04:31,520 --> 02:04:32,020
Oh, on the direction.

1464
02:04:32,220 --> 02:04:32,860
We could.

1465
02:04:33,080 --> 02:04:35,680
I'm saying, you know, I was at 30 and director.

1466
02:04:36,320 --> 02:04:37,640
Chair, Mr. Mary's at 38.

1467
02:04:37,760 --> 02:04:40,420
Maybe we can split the difference on 35.

1468
02:04:40,420 --> 02:04:40,960
35.

1469
02:04:42,000 --> 02:04:42,080
Yeah.

1470
02:04:42,220 --> 02:04:43,320
That's something like that.

1471
02:04:43,540 --> 02:04:44,300
Or 34.

1472
02:04:45,240 --> 02:04:46,020
That's actually the level.

1473
02:04:47,240 --> 02:04:53,460
And I just direction the staff on the federal infrastructure is the highest legislative

1474
02:04:53,460 --> 02:04:59,940
priority that we have along with prop one funds, park discussion, and...

1475
02:05:01,600 --> 02:05:05,160
I guess we can make a director direction to staff.

1476
02:05:05,500 --> 02:05:11,780
Yeah, we don't need a motion, you're right. I mean, at this point, the only reason we all thought

1477
02:05:11,780 --> 02:05:16,960
mentioned a motion is just so that clearly people, the community gets where we're going.

1478
02:05:17,340 --> 02:05:20,120
But that's true. Yeah, and I see the CEO once.

1479
02:05:20,400 --> 02:05:29,360
I just want to, earlier I said that my suggestion is that we're hot.

1480
02:05:29,360 --> 02:05:35,700
our financial planning assumption will be should be more on the conservative side.

1481
02:05:36,560 --> 02:05:41,360
So if we're right now it's 20% probably conservative.

1482
02:05:42,160 --> 02:05:46,580
It doesn't mean we're not a full force pursuing partnership opportunities.

1483
02:05:47,420 --> 02:05:51,360
But then I think raising this partnership assumption,

1484
02:05:52,520 --> 02:05:58,620
even though it's telling a better picture on the water rate for the future,

1485
02:05:58,620 --> 02:06:15,140
However, it seems to me that it's hurting, it's part of your work, our determination to do this project.

1486
02:06:17,020 --> 02:06:27,360
And I think it's come back to the analysis that you mentioned earlier that what is the water rate?

1487
02:06:27,360 --> 02:06:32,380
overall, with all these opportunities, what is the water rate that we're willing to look with?

1488
02:06:33,400 --> 02:06:40,880
So, my suggestion is that's not giving fixed direction to staff. I mean, we can have various

1489
02:06:40,880 --> 02:06:48,360
scenarios. I just think that's a better result. And then what I heard from all the board members

1490
02:06:48,360 --> 02:06:53,520
that how important this future water supply is, whether it's from Pacheco or from Laos

1491
02:06:53,520 --> 02:06:58,660
carries off on recyclable water. So that's my two cents.

1492
02:06:58,760 --> 02:07:02,980
Okay, no, I appreciate it. Thank you. So the CEO wanted to chime in?

1493
02:07:08,240 --> 02:07:11,600
Yes, you know, I just wanted to make sure I summarize. I think what we heard, I think

1494
02:07:11,600 --> 02:07:17,080
direction of staff is really fair. I don't know that emotion is needed. I mean, because very clear

1495
02:07:17,080 --> 02:07:21,900
that we've heard that the board is very supportive of the project moving forward. I think we've

1496
02:07:21,900 --> 02:07:26,200
have been very clear that they want us to pursue any and all infrastructure funding at the

1497
02:07:26,200 --> 02:07:30,400
state as well as federal level. You will definitely be working very hard to pursue everything

1498
02:07:30,400 --> 02:07:37,160
we can and propose Biden at infrastructure bill, etc. I think I definitely heard of 35% as

1499
02:07:37,160 --> 02:07:42,120
over looking at. So we will bring that forward as it relates to the rates of the session on the next

1500
02:07:42,120 --> 02:07:46,680
decision. I believe this will be the board will be the 27th. I would like to bear in the scene to

1501
02:07:46,680 --> 02:07:52,120
turn that around by the stop and the machine which I think is tomorrow. I think that maybe a challenge

1502
02:07:52,120 --> 02:07:58,480
but yeah and Darren can we confirm can we do that by tomorrow? Well no we won't do it by the

1503
02:07:58,480 --> 02:08:07,280
27. I didn't want to open it. And then clearly in terms of the partnership discussions we will

1504
02:08:07,280 --> 02:08:11,380
make sure we are bringing that information back. We'll probably start with the water storage

1505
02:08:11,380 --> 02:08:16,260
smart to our committee so we can make sure we're having a conversation and then be able to push it

1506
02:08:16,260 --> 02:08:22,520
back to the board. So I think that's summarizing everything that I've heard. I think if I missed

1507
02:08:22,520 --> 02:08:28,080
anything, you know, I look to the chair to the board members that I think the direction has been

1508
02:08:28,080 --> 02:08:30,420
very clear and I think we can respond accordingly.

1509
02:08:34,310 --> 02:08:36,650
Thank you. Okay, if there's nothing further,

1510
02:08:36,850 --> 02:08:43,690
I think we've had a great discussion. Thanks staff for the heavy lifting. I've been very clear

1511
02:08:43,690 --> 02:08:49,310
and I think it's very helpful to the community when staff is as prepared as we are

1512
02:08:49,310 --> 02:08:55,910
with respect to the numbers and exactly where we are in the development of the plan.

1513
02:08:56,430 --> 02:09:01,150
So thank you very much. I know it's a lot of work. We really do appreciate it. We know what it takes

1514
02:09:01,150 --> 02:09:09,670
and we do appreciate it. So thank you and awful lot for everybody being prepared and helping us out.

1515
02:09:10,610 --> 02:09:16,470
If there's nothing further from the board, then we'll go into closed session at this point.

1516
02:09:17,330 --> 02:09:23,030
We do have one item, so let's move into closed session now.

1517
02:26:05,140 --> 02:26:14,020
Okay, we're back. We've got a session before the directors, and we have council, tell us what we did, it didn't do.

1518
02:26:15,140 --> 02:26:15,780
Good afternoon, chair.

1519
02:26:16,360 --> 02:26:30,180
Good afternoon, chair. This is Joseph Miranda, assistant district council. Reporting on agenda item number 2.2, the board met in closed session with legal council to receive real property negotiations.

1520
02:26:30,180 --> 02:26:38,200
direction and pursuant to government code section 54956.8 the board provided direction

1521
02:26:38,200 --> 02:26:44,040
this year. Thank you. Thank you council. So we are

1522
02:26:49,800 --> 02:26:52,160
adjourned please.

1523
02:26:58,030 --> 02:26:59,950
Okay, so we're going to adjourn

1524
02:27:00,750 --> 02:27:08,830
tomorrow night at 7 o'clock to tomorrow evening at 7 p.m. we'll talk about water rates

1525
02:27:10,190 --> 02:27:11,190
And I'm glad you.