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Let's go, children, get late

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for a call reading.

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I'm actually, uh, Stephanie, I'm going to be the clerk for this committee and a call is shadowing me teaching me to fly.

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Welcome, Stephanie. Thank you.

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So it is 11.01.

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I'll do the roll call.

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I did call the meeting. Oh, I'm sorry, apologies. I'm sorry.

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All right, no problem. I welcome everybody. Good morning, everybody. I'm chair Richard Santos.

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And if you're at the water supply, the man management committee meeting, you're at the right place.

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If it came to the dial for dollars, you're making a wrong mistake.

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So with that, we're going to call the dean to order.

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Rook, please.

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Director Shivan.

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Here.

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Director Kigan.

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Here.

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And Director Santos.

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Here. Thank you.

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Thank you.

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Time up and for public comment on any item, not on the agenda.

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So if you have, please,

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That's Stephanie and Nicole low and we got three minutes. We glad to hear from you. Raise your hand. Let us know

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So next item will be approval of the minutes. Do I have emotions?

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There's a motion by Director Keegan the second mind. Director Nye. All in favor

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Opposed. Thank you. That carries

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You know

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This is the very huge package today. So we go to item four point one

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it says subject review potential water conservation targets for inclusion in the 2050 water supply

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master plan and recommend to the Santa Clara Valley Water Agency board that 126,000 acre feet

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year option B water conservation goal by 2050 for inclusion in the water supply master plan.

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Who do we have? Good morning committee. I'm here to serve assistant officer for the water supply

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division at the January Water Conservation

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Demand Management Committee meeting.

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The committee noted a support for Option B

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about one additional information.

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So that is what we're providing today

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and I'll turn it over to Meet Drive.

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Yeah, before I do any public comment,

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anybody want to public speak on this?

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We have a couple of people here.

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Okay, with that, Meet Drive. Good morning.

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Manager of the Water Supply Planning Conservation unit.

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Thanks. Good morning, Chair Santos and committee members.

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Today, we are bringing our recommendation on the water conservation goals for inclusion in the water supply master plan at the December 2023 and January 2024 meeting staff presented three options for the 2050 potential goals and the associated water conservation programs evaluated under those options, including the program implementation rates, costs, and staffing that would be required to achieve each 2050 potential.

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Our recommendation is option B and I will explain this further in the presentation.

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The water supply master plan is valley waters guiding document for long-term water supply investments

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to ensure water supply relief.

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The Board's current Water Conservation goal of 99,000 acre feet a year, and the

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Board's current

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water conservation goals of 99,000 acre feet a year, and 110,000 acre feet a year by 2030, and 2040.

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respectively are being guided by the implementation of the 2021 water conservation strategic

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plant. Valley water is currently developing its 2050 water supply master plan and seeks to

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identify water conservation goals for potential inclusion in the plant. The water conservation

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goals will provide options to maintain or achieve additional savings beyond Valley water's current

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plan conservation activities. As you will see in the upcoming slides, staff recommended

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achieving additional savings beyond its current activities.

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To meet our existing goals, we have a diverse suite of over 20 different conservation

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programs that reach all sectors of our community and provide cost-effective approaches

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to water saving activities. We also provide community education to ensure that water smart

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habits are built and maintained in Santa Clara County, ensuring that we have a water conservation

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as a way of life. Our current program cost is approximately $600 nacre foot. However, if we

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would be needed.

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To develop potential 2050 water conservation goals for valley water to

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consider valley water did a review of its current program and pure agency programs

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evaluating potential program expansion options and implementability. And as well as considering

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community interests, costs and regulations based on these findings valley water developed three

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potential goals. The 2050 goals would be fulfilled by leaning into Valley Waters existing programs,

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while still providing flexibility to enhance existing programs and add new programs.

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It assumes the implementation of Valley Waters existing mix of programs by 2040 as described

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in the 2021 strategic plan.

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Valley Waters existing program is on par or exceeds the programs

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offered by its pure agencies, but we are beginning a benchmark study to do a more thorough review

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of other agencies both in California and nationally. Despite a strong existing program,

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further savings could be obtained by leaning into our existing programs and by providing flexibility

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to enhance or add new programs.

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This graphic summarizes the estimated active and passive savings within

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valley water service area for the three potential saving goals through

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2050. Passive savings are due to water savings that are associated

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with plumbing and building code and market driven forces, whereas active

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savings refer to savings generated by the 20 plus water conservation programs currently funded by

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Valley Water. Option A assumes recent average rates of implementation resulting in an additional

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7,000 acre feet a year by 2050. Option B assumes recent drought rates of implementation

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achieving an additional 14,000 acre feet a year by 2050. Option C assumes achieving an

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additional 25% reduction in outdoor water use as compared to 2020, achieving an additional

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22,000 acre feet a year by 2050.

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As mentioned before, to leverage the past and current

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valley water investments in the conservation program, the 2050 goals aim to leverage the

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existing programs while still providing flexibility to enhance and add new programs.

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10 conservation measures were selected for further analysis in developing the three options,

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and each goal had a different concept.

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Combination of 46 conservation measures from the list of 10. This is a subset of our ongoing conservation programs that were determined to have data available on potential savings and focused on outdoor and CI, where the most savings are available into the future.

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The conservation tracking model was used to determine the cost to achieve each 2050 goal as shown at the bottom of each bar on the graph.

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The cost per acre foot of savings for each goal is a function of the assumed annual savings, the useful life of conservation measures,

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implementation rates and valley waters cost for implementing including the additional staff.

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The cost per unit of water savings from 241 through 2050 in 2023 dollars is approximately

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1,230 for option A, 1,338 for option B and 1,690 for option C.

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It is important to note that achieving option B and C 2050 potential goals requires the implementation of more expensive conservation measures, such as the whole house greywater reuse.

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As a result, the costs to achieve each additional unit of water savings is progressively more expensive.

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Additionally, these 2050 potential goals are not an all-inclusive cost to run valley water's conservation program.

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Valley water will continue to offer less cost-effective programs such as the landscape rebate low income direct install program,

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or providing educational resources such as webinars and hosting the landscape summit which are not reflected in this unit cost.

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When determining which option to recommend, Valley Water Considered Implementability, cost,

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staffing, gallons per capita, gallons per capita per day, also known as GPCD, and regulations and policies.

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Valley Water's Conservation Tracking Model was used to assess the implementation rates that would be required from

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241 through 2050 for the 10 selected conservation measures to achieve each potential goal.

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Based on this analysis, option A would require scaling the annual implementation rates for the eight selected existing measures by 86%.

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Option B would require scaling the annual implementation rates for the eight existing measures by

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100 and 92% and adding a leak assistance program. Option C would require scaling the annual

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implementation rates for the eight existing measures by 290% and adding both the leak assistance

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program and a whole house free water reuse program. Successful implementation of the conservation

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portfolios requires dedicated staff and resources too. Among other things, they provide program

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administration, market, the programs, conduct stakeholder engagement, and monitor program implementation.

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The 2021 strategic plan identified the water conservation team needs to grow to 10 full-time

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staff to achieve the board's 2030 and 2040 long-term water conservation goals.

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It is assumed that option A could be implemented with those 10 full-time staff members.

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However, the implementation of option B or option C will not be feasible without additional

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staffing and resources. For options B and C staffing assumptions or scaled up consistent with

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measure implementation rates. Valley water would almost need to double staff levels to implement

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option B and almost triple staff levels to implement option C.

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Valley water is currently 20% more

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efficient than the state of California on average. With the GPCD between 71 and 74 and it

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is one of the top 10 most efficient counties in the state. Therefore, valley water will need

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to make extra effort to achieve more aggressive conservation goals. Of note, many of

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water's retailers already meet SB 1157 indoor water use targets for 20.

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30. Staff believe the conservation goals will ensure our county continues to meet or exceed existing and future

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water-use regulations the state may enact.

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I miss that slide. Staff is recommending option B for the

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2050 water conservation goal. Option B is a more aggressive goal that balances the cost.

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We'll balance the cost of the programs with the benefits.

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It will require us to lean into our existing programs,

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including possibly expanding.

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However, staff evaluation found sufficient,

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feasible program expansion options that would likely

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which in part will be done through larger rebates and increased staffing. Staff think that option

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be compliments the state and the boards making water conservation a way of life strategy

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with the expected indoor residential water used to be less than 30 GPCD. This far exceeds the

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requirement in SB 1157 despite the aggressiveness of option B staff believe it will maintain sufficient

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elasticity in the demands for our county to meet drought calls of up to 20% water use reduction.

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The next steps include bringing the committee's recommendation to the board for adoption

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and incorporating the information into the water supply master plan.

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The master plan analysis

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today has demonstrated that water conservation alone will not solve the long-term water supply

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reliability needs of value water. Options B and C are ambitious, requiring scaling implementation rates

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by approximately 200 and 300 percent with commesurate staffing and funding resource increases.

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Furthermore, the analysis has demonstrated that the higher saving targets requires the implementation

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of more expensive and less cost-effective conservation measures. As a result, the cost to achieve

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each additional unit of water savings is progressively more expensive.

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Option V was found to be feasible, balanced costs and benefits,

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compliments making water conservation a way of life, exceeds SB 1157 water use

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limitations and maintains demand elasticity to support drought response.

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It is for these reasons staff recommends the committee recommend option B, 126,000 acre

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year as the 2050 water conservation goal to the board for adoption. We have discussed our analysis

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with the independent expert who concur as with staff's recommendation. And that concludes

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kind of presentation. Thank you, Major. Very clear, very good. Something like a compromise. Actually,

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are you all for this? Okay. But that we're going to have the comments from the committee. We

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go to the public and we'll come back for a recommendation.

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You're welcome, shoot.

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Thank you, Chair.

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Thank you, me, Charles, for the presentation.

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I have a question on this chart.

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I'm going to have a casual saving target.

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Those bar charts.

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Let me get to that.

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So I'm just, pay just six.

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Yeah, yeah, yeah, this, this way, so I just want to make sure I'm reading this correctly, so the passive savings, it's primarily due to the rules and laws changes.

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Yeah, so it stays with the community for it. For example, for forever. Right, so for example toilets, right toilets have become more efficient.

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That's an example of that.

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So the 54 that numbers states the same.

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So my question is that if we're successful,

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if we're successful in getting support

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from municipalities within our county on this.

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the mother ordnance that for major remodeling.

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I'll just say the model ordinance that for major remodeling and beauty, new homes. Well, the second of 54 be increased? No. No. So those are that is a no regrets project, right?

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Package is one of the no regrets projects under that package and so that's actually included in your report.

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already. Yeah. Okay. Okay. Okay. So then the SB 1157, that potential saving, even though

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we're Santa Clara County's already doing a very good compared to other county, but that's already included.

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Yeah. Okay. So okay. That's what I want to figure out. And the second question is that, what's the

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board up proofs this 2050 conservation go this the implementation

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stocks immediately? No. Well we're still actively trying to write

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implement the 2030 and the 2040 goals. Right? We provide updates on

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as my effect at the next meeting. Yeah. Providing it on that. So I mean, I

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think we would probably focus on that and then probably further down the

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line. Again, because most of these programs are existing

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programs, right versus like no regrets. That was a lot of new programs, right? So our hope is that since it's already existing programs that we can during that time frame, right?

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Build up to what we need to achieve the 2050 goal. Okay. Yeah, but we're not going to need 20 staff next year. No. And I think that's an important point for the full board, because we are all very passionate about conservation.

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we're going to say that God and higher 20 more people next week, something like that, and so, and so that's that's I think it's important to explain to the board and I definitely support the host F's recommendation.

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Thank you, and thank you for the presentation we try and, you know, it's consistent with previous presentations that director Shwai and I have seen, and I do agree with staff that option B is probably the best option, you know, given the constraints that we're operating under. A couple of questions.

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How sensitive to this, or is there any connection between if the state were to identify

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future conservation goals that get adopted statewide that are greater than what they currently

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have. I mean, to me, that would seem like it would lower the price of imported water to

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some extent, right, because the demand would be less if people had to save more. So have we

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given any real thought to that kind of analysis or is it just too difficult to tease out those

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connections? You know, I need to start the beginning piece. I missed the beginning piece,

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So we are achieving more in terms of reduction compared to state, and so what I'm saying is what if the state sort of closed that gap, I got what would that mean in terms of the costs.

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So, it depends on what the state chooses to pass, right, most likely they'll end up passing

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something that's towards passive savings, right? Then we would go ahead and update, right,

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our model is in our fact, we need to, we are waiting for the state to finalize some of their

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regulations for this conservation away of life. And once we have those numbers, we plan on updating the

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model and that information will then be included as part of the passive savings. So that's an

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example, director's way where in the future that 54 number could increase if for some reason

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there are some additional laws that get implemented before that is true. Yes. That's good news

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to hear because that gives us the ability to adjust, get on change circumstances. And then my other

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question is maybe this isn't the place to answer it because it's more of a political question but I'll

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throw it out because, you know, I throw it out about questions, because we're achieving savings

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greater than the state requires. Have we pursued anything legislatively like where we might get

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A benefit in terms of getting funding for our projects or things like that, like, you know, if everyone else is a sea and we're

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a sea, is there an opportunity for us to try and get some credit in some way. And I'm seeing a skeptical look on Mr. Baker's face.

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But, you know, I always believe in asking and trying, we're doing more. We're spending our taxpayers and residents money to

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to be good citizens, and it would be great

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if we could get some positive benefit from that.

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But maybe I'll just let that question percolate

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and you guys can think about it and see whether

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there's any opportunities.

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No, I like that, Barbara, because when we get

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some important water, I mean, they can reduce the cost,

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based on not just getting a four star,

217
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but like you said, we're saving money.

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If I can add to that, I also think that's a good question.

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And it takes money for us and actually it's not our money, it's the people's money to achieve these goals.

220
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Yeah, we're doing good because we're investing our people are investing in this area.

221
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So it's not like what a conservation is free, right?

222
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Yeah, so we think of the box before we make a motion. Is there any public comments?

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Yes, so now get a microphone. Get away from us and have a microphone and identify yourself.

224
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And we'll be glad to hear from

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you. Dr. White. So on this chart, the first question is for the

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2,000 40 gold, the blue barred. That costs for water is about $600 dollars per acre foot.

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Well, that, that would be the bread. I think that's the no regrets project. I would have to

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get back to you on what the exact dollar figure that we gave. Okay, because here it says $600

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for a foot, and that's why it asks, because it's a big jump from $600 to $1230 for a

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foot, and if you're just just increasing by less than 10% the amount of water available

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and you're more than doubling the cost, that doesn't the map doesn't work. And then a question

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on the, the, this would be the active savings bars, uh, from the 2004 gold to option A,

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to actually enter all the other options. Actually, you actually decrease the amount of water you're

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generating with these options, which seems odd. And also on the active savings bar, the top

235
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11, it goes from 11 to 7, which also decreases, and I'm confused as to why it would decrease

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with a savings action. So that's, that's actually a function of our water conservation model. So

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as I mentioned, it takes into consideration the program savings, the time, all of that information,

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and it ends up spinning out a number. We'd be more than happy if you want to meet and talk

239
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more about it off the offline pressure. We try if I could just add, it just gets harder to reach

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the people that we haven't reached yet, right? We have done the low hanging fruit and that is why

241
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it gets more expensive as, you know, the program expands and as we have to implement new projects.

242
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And, you know, we're also talking about future dollars. So, you know, things like that. Right.

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That I understand. And then the final question is, so the, this, this 1,000 to 1,

244
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30 versus 13, 88 percent, this cost break or foot, is that the cost for the additional water

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saved and there was going from 299 to 219, you'll look at that, you know, a teenager, so 1,000 acre feet

246
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Or is that the costs for all the water in that water class?

247
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Because that's a big difference, those two ideas.

248
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Right, so that number basically is representing like,

249
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for option A, the seven, right?

250
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It's the active programs that value water generates.

251
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It includes not only the cost of the programs,

252
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the cost of the rebates and staffing.

253
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Right, but again,

254
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is the cost, it would be really nice to have the cost of the water in the first column.

255
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The 2004 to go, so you could directly compare it because right now nobody knows what you're doing.

256
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But if you had that cost there, is that that cost is, let's say, let's say it's $600 for some.

257
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We're going to work with that $600 per acre foot for all the water in that class, right? So here I'm looking at the option a 1230, is that the cost of water for each acre foot in that column or just the additional.

258
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does the additional because again, the past, there's some savings that we have and we get to maintain, right, and then there's our programs, which, again, we maintain and then there's we go above and beyond so this is the above and beyond our maintenance, that's what that $1,200 approximate fee is.

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So just to illustrate that, when someone replaces their lawn, you know, that lives for a while, those savings, so they count.

260
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And we actually have an item about how we do that a little later on.

261
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All right, so thank you.

262
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Yeah, you're welcome.

263
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Turn that microphone off there.

264
00:31:01,780 --> 00:31:01,960
Sorry.

265
00:31:02,440 --> 00:31:03,580
Thank you, Dr. White.

266
00:31:04,220 --> 00:31:04,480
Okay.

267
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Hopefully you get more comments from the public.

268
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There are no hands raised online, and I have no cards.

269
00:31:11,620 --> 00:31:16,920
Okay, so let's maintain the California water controversial way of life, entertain a motion.

270
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Motion to submit this option B to the full board for the board to consider.

271
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Okay, there's a second.

272
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Director Kagan, there's the motion.

273
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my director view of all the favor. All the pose.

274
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That carries. Thank you, Metro. Very good. Thank you.

275
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Let's go now to 4.2.

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That's states.

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Receive information on the creation of a demonstration

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gardener featuring the Santa Clara Valley Water District's

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landscape and rebate program.

280
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And we hope this is going okay, because I've been doing

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half that by 24 years, so.

282
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In a long time, but go ahead, who's up?

283
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Yeah, I will be turning this over to Ashley.

284
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All right.

285
00:32:08,080 --> 00:32:12,680
Hello, I'm Ashley Chan, Senior Warner Conservation Specialist with Valley Waters and Waters

286
00:32:12,680 --> 00:32:14,020
by the Planning Conservation Unit.

287
00:32:14,120 --> 00:32:18,400
Thank you, Chair Santos and the committee members for having me.

288
00:32:18,680 --> 00:32:25,040
So today I want to provide some information on our proposal to create a demonstration garden here

289
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at Valley Waters headquarters building.

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So valuable, we intend to install a demonstration garden located at the southeast corner of our headquarters building, which is located here on an expressway.

291
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The garden would highlight a watershed approach to landscaping and service of beautiful functional garden and community gathering space.

292
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Specifically, the garden would showcase valley waters landscape rebate programs, serving as a tangible example for the public to see to engage with and to learn from.

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While our participants often inquire about visiting our campus here to find inspiration for their landscape projects,

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we find that at this time we're having to redirect them to other gardens installed and maintained by other organizations and agencies throughout the county.

295
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But having a garden here would allow us the opportunity to really exemplify leadership in conservation and sustainable landscaping in our county.

296
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The garden would convert approximately 22,000 square feet of existing landscape, existing struggling landscape,

297
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to low water use, space-friendly landscape, and would also include the creation of low impact development features.

298
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These features would include vegetated swells and rain gardens within the main demonstration garden area,

299
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as well as renovation of the existing bioretension areas that are in our parking lot,

300
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I mean parking lot areas to infiltrate and street storm water.

301
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High efficiency irrigation, technology and rainwater harvesting, demonstration systems

302
00:34:07,870 --> 00:34:13,070
are planned as well for the garden, and this project would include a public gathering

303
00:34:13,070 --> 00:34:16,470
area permeable hard scape and educational signage.

304
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Due to the publication of this project, multiple internal and external stakeholders will

305
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included in the design and process to ensure that the garden achieves its full potential.

306
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The garden, which is easily accessible to the public, will reflect garden design elements

307
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that can be applied to both residential properties and commercial properties, all of which

308
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are eligible to participate in our rebate program.

309
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We plan value our plans to release a request

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for proposal for the design services later this year and we hope to begin construction in

311
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fiscal year 2026. The estimated the rough, you'll rough a person.

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We have a very estimate of the garden design and construction for the demonstration garden area itself.

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We'll be about 1.4 million.

314
00:35:08,040 --> 00:35:13,360
And we do have safe clean water funding that we'll be used in addition to potential grants and other

315
00:35:13,360 --> 00:35:15,980
Rebellion water funding for this project.

316
00:35:17,140 --> 00:35:23,960
We did present the same topic recently at the April meeting to the environmental and water resources committee.

317
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And we will be moving forward to work with our other committees and stakeholders as well.

318
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And so with that, I open it up for.

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I'll close that.

320
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Didn't mean to.

321
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For questions.

322
00:35:37,940 --> 00:35:39,980
Well, thank you very much.

323
00:35:40,080 --> 00:35:41,640
And this is very exciting news.

324
00:35:41,780 --> 00:35:44,500
And actually, it's some.

325
00:35:44,520 --> 00:35:48,180
But incidentally, our colleague director, Bell, just the other day,

326
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mentioned in that he would like to see more native plants and in more diversity in terms

327
00:35:55,260 --> 00:36:08,030
of our landscaping. So one time I heard from a landscape architect, the concept of landscaping,

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being like decorating a house, right? You know that you have different zones or just like in a

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you have different rooms in an interesting garden you have different zones and so I would really

330
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encourage us to kind of think with that in mind because different people have different preferences

331
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in terms of what their style of garden might look like. Some people have you know traditional Victorian

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homes, some people like myself, we have Spanish colonial revival, some people have very modern homes.

333
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And so I think if we are able to break up some examples of different types of treatments as part

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of what we're doing, I think that would make it be of interest, but I would defer to the professional

335
00:36:58,570 --> 00:37:03,780
landscapers on that. But I know for myself, when we were thinking about, well, what do we we're

336
00:37:03,780 --> 00:37:06,300
We're going to take our lawn out, what do we want to do?

337
00:37:07,720 --> 00:37:08,780
We didn't really know.

338
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And unfortunately, we had a neighbor who is a landscapeer,

339
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and she sketched out something on a sheet of paper,

340
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and we went ahead and did it.

341
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But not everyone has that opportunity that those kinds of resources.

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So I think it would be great if we have something

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00:37:26,460 --> 00:37:29,420
that sort of showcases some different styles.

344
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And that way, because it's a demonstration garden, I think we want to demonstrate different modes, if you will. So those are my thoughts, but again, I would defer to the professionals and certainly I think it's very important to get input into how this design moves forward. But again, very exciting. Thank you.

345
00:37:53,990 --> 00:38:02,750
No questions, I'm just exciting project, maybe that so my question is more like,

346
00:38:03,790 --> 00:38:07,730
so we have to stop now, it's not budget it.

347
00:38:09,430 --> 00:38:20,170
But it's, you know, the work that you need to do in bringing this edge way to have a

348
00:38:20,170 --> 00:38:28,710
hours, but the actual implementation of this project, I don't think it's in the budget or I

349
00:38:28,710 --> 00:38:31,510
decided to pay attention if it does.

350
00:38:34,920 --> 00:38:39,780
So actually we actually plan on using safe clean water grant funding

351
00:38:39,780 --> 00:38:42,200
for this project.

352
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So then if that saved me what?

353
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Because that's the, that's for A2.

354
00:38:49,580 --> 00:38:50,200
Water constant.

355
00:38:50,440 --> 00:38:53,380
If A2 is not enough for this project,

356
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and then we're relying on potential grants.

357
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And so when we say potential grants,

358
00:39:00,180 --> 00:39:02,820
that means yes or no, right?

359
00:39:03,140 --> 00:39:05,220
It's, the risk of massing the questions.

360
00:39:05,600 --> 00:39:06,760
It's exciting project.

361
00:39:06,960 --> 00:39:08,180
Well, I want to see it happen.

362
00:39:08,180 --> 00:39:18,380
So if there's any obstacle in the way, just so that we can help removing those obstacles for this project,

363
00:39:18,420 --> 00:39:23,400
I'd just like to send to a set that we talked about this for 24 years already.

364
00:39:24,960 --> 00:39:33,340
So we're part of the reason why we're trying to kick this off right now is to ensure that we have plenty of time for the Safe Clean Water Funding.

365
00:39:33,340 --> 00:39:39,900
Yeah. So that the entire project could be included in that. Okay. Yeah. Okay. We do not plan on, um, you know,

366
00:39:40,000 --> 00:39:46,460
needing additional funding outside of the safely water. Okay. Thank you. If I could just add something,

367
00:39:47,740 --> 00:39:51,800
perhaps we might look at opportunities for public private partnership. You know, if we have a

368
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sponsor, they get to put a little placard there. There's a lot of creative ways other than just

369
00:39:58,220 --> 00:39:59,960
spending our own money and I could see.

370
00:40:00,000 --> 00:40:08,040
Okay, peeing or things of that nature wanting to make an in-kind contribution. So I'm, you know, I think it'd be great to explore that. Thank you.

371
00:40:08,360 --> 00:40:17,520
We have done that in the past, but it's a good to look at that today. Maybe that would be a sponsorship in somebody. I know this would be complementary to the landscape in committee.

372
00:40:18,040 --> 00:40:29,880
And in a show case that right here. Back that I walked out a couple of days ago, there's too many weeds in there. We need to get removed. So with that before I go to the public, I want to make sure you know I've been working on this.

373
00:40:30,000 --> 00:40:35,100
That can 2001 when Ron Kahnemoto was there and some others I can't think of

374
00:40:35,100 --> 00:40:42,240
We were going to go to Columbus Park and then we looked at a plan in San Diego that was millions of dollars and next thing

375
00:40:42,240 --> 00:40:46,040
I know some out and fell to the great vine. So I'm really excited and

376
00:40:46,560 --> 00:40:52,040
Director Shu and Director Kagan is because we can showcase it here in our

377
00:40:52,040 --> 00:40:53,980
place of business

378
00:40:53,980 --> 00:40:55,340
And it would be great.

379
00:40:55,540 --> 00:40:59,900
And they public comments before directors give some kind of input to go forward.

380
00:41:00,400 --> 00:41:03,080
This is going to get the microphone up yourself.

381
00:41:08,480 --> 00:41:16,140
So, in trying to do this far on home, I ended up spending quite a bit of time on the internet,

382
00:41:16,480 --> 00:41:24,680
going to various nurseries, going to San Jose State, there are gardens, and information is actually difficult to find.

383
00:41:24,680 --> 00:41:32,200
So, what I think, I, what highly suggest is a component of this project is that you,

384
00:41:32,260 --> 00:41:40,120
you consider some way to provide this information to the community, you know, at large at any

385
00:41:40,120 --> 00:41:45,660
time, whether that's a website that you set up with all the different plants that you've got

386
00:41:45,660 --> 00:41:52,960
and these are the soil conditions that they need. So, you know, we did that, but I don't think anybody

387
00:41:52,960 --> 00:42:00,060
has the time that I had. So if you figure that into that project, it'll make it a lot more useful.

388
00:42:01,440 --> 00:42:07,960
Yes, thank you. We do plan on having educational components via a huge part of the garden.

389
00:42:09,220 --> 00:42:13,500
So, you know, interactive, interpretive signage, you know, making back to everything.

390
00:42:13,800 --> 00:42:18,000
We know now with the use of QR codes, it's easy to link to say, like a plant list, things like that.

391
00:42:18,000 --> 00:42:25,460
information online. We have kind of modeled our initial project after one that was completed

392
00:42:25,460 --> 00:42:29,820
by the city of Santa Rosa and they have been a great example of putting all that information

393
00:42:29,820 --> 00:42:36,440
online and the designs, the rendering spids. Kind of all of that is open to the public and so

394
00:42:36,440 --> 00:42:44,040
yes we do our real goal is to use this as an educational opportunity so as much as we can do to

395
00:42:44,040 --> 00:42:48,660
you know provide plan, let's et cetera. Thank you. Well, thank you for that good

396
00:42:48,660 --> 00:42:53,420
presentation and what it says is receive and provide the input. What's the pleasure

397
00:42:53,420 --> 00:42:59,660
of the committee? Just go forward. Yeah, we don't need a motion. That's what we'll do. So with that,

398
00:42:59,740 --> 00:43:04,100
we thank you because that's again, very complimentary to the landscape of the committee and

399
00:43:04,100 --> 00:43:11,270
all the people before me and after done a great job. Yeah. Thank you.

400
00:43:11,270 --> 00:43:15,130
Go to 4.3, and that's it.

401
00:43:16,110 --> 00:43:18,830
Subject is to receive information on a water use,

402
00:43:19,150 --> 00:43:20,710
projections, water demand,

403
00:43:21,130 --> 00:43:24,010
elasticity, and customer affordability study.

404
00:43:24,330 --> 00:43:27,210
Provide feedback and direction to staff as a necessary.

405
00:43:27,990 --> 00:43:31,270
And they have a recommendations as you see the information.

406
00:43:32,410 --> 00:43:36,830
Review the scope and provide feedback and recommendations to staff.

407
00:43:36,830 --> 00:43:40,110
All right. Good morning, committee members,

408
00:43:40,590 --> 00:43:41,870
Darren Taylor, chief financial officer.

409
00:43:41,990 --> 00:43:43,990
Talking about water race of karma's here.

410
00:43:44,230 --> 00:43:44,770
That's right.

411
00:43:47,630 --> 00:43:47,770
Yeah.

412
00:43:49,150 --> 00:43:55,270
So item 4.3 provides information on a consultant study that

413
00:43:55,270 --> 00:43:57,550
we're just in the process of kicking off.

414
00:43:58,130 --> 00:44:00,730
The study will look at our water use projections,

415
00:44:01,490 --> 00:44:05,570
as well as do a water demand elasticity and customer affordability study.

416
00:44:06,550 --> 00:44:11,830
The study will be conducted by Raftelos Financial Consultants with the help of Hayson and Sawyer.

417
00:44:12,850 --> 00:44:22,510
And so we have brought those consultants here today to talk with the committee about the study, the objectives, the assumptions, the timeline,

418
00:44:23,310 --> 00:44:27,010
and so that we can get this committee's feedback as we proceed forward.

419
00:44:27,230 --> 00:44:35,110
And so with that, I'm going to turn it over to Kevin Costjek from Raftelos Financial Consultants for brief presentation.

420
00:44:35,870 --> 00:44:36,670
Thank you.

421
00:44:36,670 --> 00:44:37,550
Thank you.

422
00:44:37,550 --> 00:44:38,050
Thank you, Darren.

423
00:44:38,690 --> 00:44:39,130
Good morning.

424
00:44:39,470 --> 00:44:39,910
Good morning, committee.

425
00:44:40,030 --> 00:44:41,130
Kevin Costa from Raptalists.

426
00:44:41,710 --> 00:44:43,210
Good to be with you for the first time.

427
00:44:43,830 --> 00:44:44,470
Next slide please.

428
00:44:45,930 --> 00:44:47,570
So here's our roadmap for the day.

429
00:45:00,000 --> 00:45:04,900
We want to be able to, your feedback today and any comments and questions.

430
00:45:07,360 --> 00:45:08,040
So, again, my name is Kevin

431
00:45:08,040 --> 00:45:13,420
Costa from Apptellis. I'm down in Santa Barbara. I've been with Reptellis for 10 years, working

432
00:45:13,420 --> 00:45:17,440
on all things utility in the state of California, with Reptellis for the last 10 years.

433
00:45:18,500 --> 00:45:26,700
Elaine Conti, who you may know well in historic, great setting with Valley Water, is back.

434
00:45:26,700 --> 00:45:31,580
I'll be supported with one in Harrelson, who's joining us today as well as Brian Kirch.

435
00:45:32,200 --> 00:45:36,440
And then as Darren mentioned, the Hayes and team, including Jack and Luke, who have developed

436
00:45:36,440 --> 00:45:43,180
the recent demand forecast model in who will be participating heavily in our scope and our project.

437
00:45:43,780 --> 00:45:47,760
We've also got support from Joe Kreea on our reptiles team.

438
00:45:48,280 --> 00:45:53,380
Joe's a resident expert on all things affordability. He's joining us today as well.

439
00:45:53,380 --> 00:45:58,700
and then access to ample other subject matter experts along the way.

440
00:45:59,620 --> 00:46:00,440
Next slide.

441
00:46:01,880 --> 00:46:05,360
So analyze and understand the interrelationships of price elasticity,

442
00:46:05,820 --> 00:46:07,240
affordability and water demand.

443
00:46:07,460 --> 00:46:09,460
That's really our charge with the project.

444
00:46:10,000 --> 00:46:13,660
We've got three primary discrete tasks at hand.

445
00:46:14,220 --> 00:46:16,240
The first being a water demand analysis,

446
00:46:16,260 --> 00:46:19,940
again relying on the existing water demand model,

447
00:46:19,940 --> 00:46:27,200
as well as the rate model, second being an elasticity of demand analysis, which hazelnut

448
00:46:27,200 --> 00:46:31,880
take the lead on, and then a water rate affordability analysis, which reptiles will take the lead on.

449
00:46:33,520 --> 00:46:41,520
Next slide. So our project goals trying to create a visual here, really the goal is how do we

450
00:46:41,520 --> 00:46:48,920
sensor, your rate impact of affordability and elasticity across the region.

451
00:46:49,360 --> 00:46:53,520
So three of your retailers, two end users, and ultimately back to valley water.

452
00:46:54,120 --> 00:47:00,180
So in the chart there, you see how your rates have many components and factors to derive

453
00:47:00,180 --> 00:47:04,280
the end rates that you've charged your retailers, your retailers themselves, many factors

454
00:47:04,280 --> 00:47:10,780
that flow into their rates, some of which includes your rates to a greater or less

455
00:47:10,780 --> 00:47:12,140
should agree depending on the retailer.

456
00:47:13,100 --> 00:47:14,980
That translates into an end user's bill.

457
00:47:15,600 --> 00:47:17,620
So again, the idea here is to try and understand

458
00:47:18,160 --> 00:47:20,300
how value waters rates affect retailers,

459
00:47:20,560 --> 00:47:22,120
affecting end users, and ultimately,

460
00:47:22,780 --> 00:47:25,320
in long-term sense affecting your planning

461
00:47:25,320 --> 00:47:26,640
and your future rates.

462
00:47:29,970 --> 00:47:31,650
So as I mentioned in the prior slide,

463
00:47:31,670 --> 00:47:32,930
really what we're trying to do here

464
00:47:32,930 --> 00:47:36,110
is connect factors that affect the short-term,

465
00:47:36,430 --> 00:47:38,390
like our rates, like demand variability,

466
00:47:39,670 --> 00:47:42,090
with long-term factors, like affordability of service,

467
00:47:42,090 --> 00:47:48,410
like the pricing of regional water use and your long-term capital planning and operating budgets.

468
00:47:52,220 --> 00:47:57,260
So our team has been engaged in developing the long-term demand model, as I mentioned,

469
00:47:57,440 --> 00:48:03,280
that includes baseline demands looking at cost of water shortage, drought response planning.

470
00:48:04,220 --> 00:48:12,180
And then again, what we're trying to do is use these long-term forecasting models to link with the short-term rate setting of rise.

471
00:48:15,700 --> 00:48:21,020
So when we talk about estimating price elasticity or elasticity of demand, there's technical

472
00:48:21,020 --> 00:48:21,560
choices.

473
00:48:22,020 --> 00:48:26,320
We're going to work with staff to try and understand and implement those choices as part

474
00:48:26,320 --> 00:48:26,940
of the study.

475
00:48:27,740 --> 00:48:35,220
Some of the questions are going to be elements related to what elements of price to consider,

476
00:48:35,780 --> 00:48:41,780
whether we're focusing on certain segments of demand and ultimately different statistical methods

477
00:48:41,780 --> 00:48:44,760
of choosing to estimate price elasticity.

478
00:48:46,360 --> 00:48:51,160
Turning the affordability front, affordability has many approaches.

479
00:48:51,840 --> 00:48:53,620
It's not a formulaic approach.

480
00:48:54,360 --> 00:49:00,400
This slide is really to indicate that we have kind of a higher level macro scale versus

481
00:49:00,400 --> 00:49:06,560
a micro scale that macro scale kind of thinking utility-wide or service level wide and

482
00:49:06,560 --> 00:49:11,700
measuring the ability to pay for certain capital investments or cost

483
00:49:11,700 --> 00:49:17,200
projected in the future versus household affordability, the micro level where we're trying to

484
00:49:17,200 --> 00:49:24,160
home in on individual user's ability to pay for water services. So again, a high level

485
00:49:24,160 --> 00:49:25,760
and a micro level.

486
00:49:28,020 --> 00:49:32,140
And we do have a framework, a framework that's grown out of 25 or 30 years

487
00:49:32,140 --> 00:49:41,020
of evolution starting with the EPA back in the mid to late 90s. You see different approaches and

488
00:49:41,020 --> 00:49:47,300
indicators for assessing affordability from community type characteristics, residential type

489
00:49:47,300 --> 00:49:52,880
characteristics, and then utility-wide financial characteristics as well. We're going to focus,

490
00:49:52,940 --> 00:49:58,180
we think we're going to focus to a large degree on the box there that says AR20 under the

491
00:49:58,180 --> 00:49:59,960
potential bills. That's it.

492
00:50:00,000 --> 00:50:07,520
The CPUC, your largest retailer, subject to the California PUC, so there's a nice connection there.

493
00:50:10,740 --> 00:50:18,400
So, just a couple examples of some of the higher-level indicators and metrics that we'll be looking at.

494
00:50:18,460 --> 00:50:31,040
Household income, lowest quart, quintile income, median household income, et cetera, for different parts of the service area, different retailers within your service area.

495
00:50:32,550 --> 00:50:40,670
And again, some additional affordability metrics looking at the cost of water for a typical

496
00:50:40,670 --> 00:50:46,550
user in a certain retailer's service area, and what that bill looks like is a function

497
00:50:46,550 --> 00:50:51,010
of household income generally in that region.

498
00:50:53,670 --> 00:50:57,940
So talking about study assumptions, we're going to leverage all of our available data that

499
00:50:57,940 --> 00:51:08,160
includes the 2019 demand model and access to all valley water data sources that we'll need within this study.

500
00:51:08,940 --> 00:51:15,940
We hope to have some willing participation from retailers to be able to acquire some detailed billing data,

501
00:51:17,520 --> 00:51:20,500
greater than just aggregated data kind of at the retailer level.

502
00:51:21,080 --> 00:51:27,580
And then defining our study scope that boxing us in to exactly what we want to do and look

503
00:51:27,580 --> 00:51:31,900
at going forward so that we can help inform the upcoming rate setting cycle.

504
00:51:34,860 --> 00:51:39,860
As far as challenges and limitations we might face availability of data and reliability of data

505
00:51:39,860 --> 00:51:45,520
always concerns the level of effort to acquire data, to model it both now into the future.

506
00:51:46,420 --> 00:51:51,980
Also, questions on how we define affordability can be less than objective, a little bit of an eye of the

507
00:51:51,980 --> 00:51:58,420
holder on how we define a affordability of water service. And then defining the drivers

508
00:51:58,420 --> 00:52:03,700
for demand elasticity or elasticity of demand of water use, and you see the various influencers

509
00:52:03,700 --> 00:52:12,240
there. And then limitations really limits on how granular we can go in this elasticity approach.

510
00:52:12,820 --> 00:52:18,620
So what we don't envision on the elasticity approach is going to the say account level or parcel level

511
00:52:18,620 --> 00:52:21,480
estimation with all of your retailers.

512
00:52:24,260 --> 00:52:26,340
If we can skip one ahead, I'd like to come back and

513
00:52:26,340 --> 00:52:35,640
end on this one. So, talk about study schedule. As Darren mentioned, we've begun our kickoff

514
00:52:35,640 --> 00:52:45,080
our data acquisition and moving forward here in 2024. That first box project management is really

515
00:52:45,080 --> 00:52:49,620
all of our meetings with staff along the way, but also with your committee and potentially

516
00:52:49,620 --> 00:52:55,940
an award through the course of the study, then we have our three discrete tasks again focusing

517
00:52:55,940 --> 00:53:01,160
first and foremost on the water use projections, because we understand that that is a big

518
00:53:01,160 --> 00:53:07,660
driver and influencer for our near-term rate setting, then getting into our other two primary tasks,

519
00:53:07,820 --> 00:53:12,940
the demand of elasticity analysis, and the affordability analysis. And then once we complete

520
00:53:12,940 --> 00:53:17,440
all of our tasks will have draft and final reports and be presenting those to the end of the

521
00:53:17,440 --> 00:53:23,420
study horizon. So now if we can go back one, I wanted to end here because this kind of

522
00:53:23,420 --> 00:53:29,820
describes some of the discussions we'll have to have with you with staff with the project team

523
00:53:29,820 --> 00:53:37,860
on kind of how we move forward and what scale dimension granularity we really want to consider

524
00:53:37,860 --> 00:53:44,180
are focused on and so we develop this visual just to get ourselves thinking, where it says

525
00:53:44,180 --> 00:53:48,460
county there, that's really the highest level, that's your service area. So we're thinking

526
00:53:48,460 --> 00:53:52,320
at the service area level, we're thinking about individual discrete retailers, we're talking

527
00:53:52,320 --> 00:53:58,480
about sectors, think residential versus commercial versus agriculture. Or so some combination

528
00:53:58,480 --> 00:54:04,440
of those. So some considerations there and further discussions needed.

529
00:54:07,060 --> 00:54:08,400
So I will leave it

530
00:54:08,400 --> 00:54:13,900
this slide to try and get if we could leave it on that slide to get the discussion going, but with that,

531
00:54:14,120 --> 00:54:19,760
that's the end of my presentation. Again, we've got most of our team here today, happy to answer

532
00:55:00,820 --> 00:55:10,480
And also acknowledge that our colleague, director Eisenberg, actually I think was the first to really promote this idea of demand elasticity.

533
00:55:11,180 --> 00:55:20,780
And so I think it's a great thing to study and I appreciate staff taking that extra step to make this happen. The consultant seems to have excellent experience.

534
00:55:20,780 --> 00:55:36,880
And I'm particularly interested in, you know, the experience with affordability assessments as well as an affordability right design, but also racial and socioeconomic equity.

535
00:55:37,060 --> 00:55:45,160
You know, we live in a county where we have many people who are extremely wealthy and then we have a number of people who are just struggling to pay their regular bills.

536
00:55:45,160 --> 00:55:52,820
And so I think getting the results that help us to better understand that as we go through

537
00:55:52,820 --> 00:55:55,600
our rate setting process is going to be very helpful.

538
00:55:56,400 --> 00:56:07,060
So I do have a question for the consultant and I guess I would just like to ask what in addition

539
00:56:07,060 --> 00:56:13,080
just to rate setting, what is the value of going through this exercise because I do believe

540
00:56:13,080 --> 00:56:21,480
there is a value, but are there sort of ancillary benefits that a public agency can see by going through this type of analysis?

541
00:56:27,900 --> 00:56:29,520
That's directed to the consultant.

542
00:56:31,180 --> 00:56:31,740
Yeah.

543
00:56:32,360 --> 00:56:36,380
Elaine came off mute, and I'll let her talk about one.

544
00:56:36,680 --> 00:56:37,380
Thank you all here.

545
00:56:38,020 --> 00:56:38,500
Yes.

546
00:56:39,340 --> 00:56:46,940
I mean, I think with this type of study with this really linking the long-term planning to the short-term planning,

547
00:56:46,940 --> 00:56:54,220
is really beneficial because it doesn't form the short-term planning from the affordability

548
00:56:54,220 --> 00:56:55,000
perspective.

549
00:56:56,200 --> 00:57:03,820
I think it will show you over time how even some of these previous presentations that we

550
00:57:03,820 --> 00:57:10,160
heard of, how it may impact rates going forward, it gives you a baseline as a gauge.

551
00:57:11,000 --> 00:57:16,300
So I think that may be something that you can consider in some of the other initiatives that

552
00:57:16,300 --> 00:57:19,540
have, whether it's capital projects or have you, it's something that you could factor

553
00:57:20,180 --> 00:57:20,820
in there.

554
00:57:20,960 --> 00:57:27,240
So that's one of the other, I think, benefits of this study and I'll see if any of my other

555
00:57:27,240 --> 00:57:29,780
colleagues have anything they'd like to add.

556
00:57:30,100 --> 00:57:38,400
Yeah, I think all, you know, I'll put Joe, if he's here on the spot on this question, in

557
00:57:38,400 --> 00:57:42,360
some of his work that he's done elsewhere in the country on affordability and these concerns

558
00:57:42,360 --> 00:57:45,820
around certain demographics, certain neighborhoods,

559
00:57:47,940 --> 00:57:50,720
and kind of different approaches and indicators and identifying.

560
00:57:52,640 --> 00:57:57,560
Yeah, absolutely. Everybody can hear me, right? Yeah. Great grace to be with you today.

561
00:57:59,260 --> 00:58:04,920
Certainly, it's an important issue and what you mentioned, the idea is about maintaining equity

562
00:58:04,920 --> 00:58:09,840
and promoting equity or critical. Those are things that we have kind of studied with work that

563
00:58:09,840 --> 00:58:15,580
done with the city of Seattle. Equity is very important to them. They've got a lot of focus on that.

564
00:58:15,580 --> 00:58:22,720
And there are some kind of statistical and analytical ways that we can evaluate equity within

565
00:58:22,720 --> 00:58:27,360
the full service area. And I think that's part of it. The other thing I would kind of add to what

566
00:58:27,360 --> 00:58:33,640
what Elaine already said is that we're talking about short-term demands, which we may have some

567
00:58:33,640 --> 00:58:39,480
certainty around. But when you think about long-term water demand forecasting and even the affordability

568
00:58:39,480 --> 00:58:45,980
component, you know, all of those, the analysis that comes with all of that is a little

569
00:58:45,980 --> 00:58:50,720
bit, you know, there's a substance that layer into that, right? So we don't know exactly

570
00:58:50,720 --> 00:58:55,000
what's going to happen. But, you know, there's a lot of information out there and a lot of

571
00:58:55,000 --> 00:59:00,260
data we can use and leverage to provide some clarity and some insight into where we're, where we're

572
00:59:00,260 --> 00:59:05,240
headed. And the decisions we make today, like we talked about, we all talked about earlier on

573
00:59:05,240 --> 00:59:11,360
different conservation targets. Those are going to impact downstream, you know, where we spend money,

574
00:59:11,720 --> 00:59:16,600
what our rates look like, what the affordability looks like for our customers. All of those things

575
00:59:16,600 --> 00:59:21,940
kind of come together. And it's really hard to get us, you know, maybe impossible to get the answer

576
00:59:21,940 --> 00:59:26,520
for what's going to happen. But it's important to kind of understand what are the different possibilities

577
00:59:26,520 --> 00:59:30,780
and where we headed and how's that going to affect our customers, because all these things are

578
00:59:30,780 --> 00:59:36,440
related, but I just think the overall value is to know more so that you can make more informed decisions

579
00:59:37,100 --> 00:59:43,360
as a board as a committee. Thank you very much and I just have one suggestion to staff

580
00:59:43,360 --> 00:59:50,240
but you may already be thinking about this. I don't know that what we're doing is unique to us as a

581
00:59:50,240 --> 00:59:56,220
public agency in the state of California. However, it does seem to me that this might make something

582
00:59:56,220 --> 00:59:59,560
interesting to present at aqua as we go through this process.

583
01:00:00,000 --> 01:00:31,580
Thank you. Thank you chair. Well, thank you for this presentation. It's helpful. And I do need to admit that I'm definitely not an expert or a had experience in this area. I have some very high level general understanding.

584
01:00:31,580 --> 01:00:36,240
any of elasticity of demand and the water rate.

585
01:00:38,240 --> 01:00:44,420
So, I'm not sure that I can provide any meaningful feedback

586
01:00:44,420 --> 01:00:47,920
to staff and the project team at this point.

587
01:00:48,660 --> 01:00:52,200
I can only promise that as we move forward,

588
01:00:52,320 --> 01:00:54,280
as stated in your agenda memo,

589
01:00:54,720 --> 01:00:58,900
you're going to provide material update to this committee.

590
01:00:58,900 --> 01:01:10,640
so my problem is that I would definitely engage in those stages and build up my own understanding

591
01:01:10,640 --> 01:01:20,560
of this thing. At the beginning, I do have this general question. I think it's similar to

592
01:01:20,560 --> 01:01:23,100
direct kick against question.

593
01:01:25,420 --> 01:01:31,460
It's more like, once we complete these studies, I mean, there's

594
01:01:31,460 --> 01:01:42,180
like three separate studies that we're focusing on. How does it help staff and how does it help

595
01:01:42,180 --> 01:01:50,600
board, I think the consultant provided some answers in that area, but it's just a question

596
01:01:50,600 --> 01:01:56,840
on my mind. I don't need the solid answer. I think it's something that is we move forward.

597
01:01:57,980 --> 01:02:04,900
I will learn more and then some of these questions, the question will become more clear.

598
01:02:07,520 --> 01:02:12,360
So, that's that's that's all I have at this point. Yeah, so thank you. Thank you, thank you,

599
01:02:12,480 --> 01:02:18,200
Garmin, anything else? There it is. Yes, thank you. I, you know,

600
01:02:19,120 --> 01:02:23,540
wanted to get this committee's advice as far as whether or not we should do the same

601
01:02:23,540 --> 01:02:27,580
presentation for the full board or do we just leave it here and march forward.

602
01:02:27,960 --> 01:02:30,620
Well, here's what we're going to do. We're going to hear from Nick, is it caught you up there?

603
01:02:32,140 --> 01:02:33,660
It is.

604
01:02:33,740 --> 01:02:34,940
Go right ahead, please.

605
01:02:38,160 --> 01:02:38,760
I got you.

606
01:02:38,900 --> 01:02:39,300
Hello.

607
01:02:39,660 --> 01:02:40,380
Good afternoon.

608
01:02:40,820 --> 01:02:43,080
Chair Santa's directors and staff.

609
01:02:43,920 --> 01:02:48,600
I just have a few quick thoughts about the assumptions and the schedule for this study.

610
01:02:50,160 --> 01:03:01,840
One is that using the urban water management plan to man forecast versus more recent demand forecast, which staff has presented.

611
01:03:03,400 --> 01:03:13,100
Since the urban water management plant was completed, so I just was put out there why not use

612
01:03:13,100 --> 01:03:18,440
the most recent demand forecasts rather than urban water management plan, so that's one.

613
01:03:19,620 --> 01:03:26,180
And then also I was wondering, looking at water or affordability versus affordability

614
01:03:26,180 --> 01:03:33,300
of all utilities combined, I'm wondering if total utility costs would be a more meaningful measure

615
01:03:33,300 --> 01:03:38,940
of the cost burden. I don't know this that it just seemed like something to consider.

616
01:03:40,460 --> 01:03:46,620
And then lastly, I wanted to note that the schedule for this study with the first analysis

617
01:03:46,620 --> 01:03:55,340
do out in the second quarter of 2025. This would not be in time to inform the fiscal year 25.

618
01:03:58,340 --> 01:04:05,080
I guess that would be fiscal year 26. You call it that the 2526 rate setting cycle

619
01:04:05,800 --> 01:04:12,860
because that's usually pretty far along by March. So I just wanted to put that out there. Thank you.

620
01:04:12,860 --> 01:04:17,980
Yeah, thank you, Kutcher. Here's what staffs and staff recommends material study updates be presented

621
01:04:17,980 --> 01:04:23,280
to the water supply and the man management committee periodically with the final study results

622
01:04:23,280 --> 01:04:30,360
presented to the full board. Is that the other one? Darren just asked the committee the question

623
01:04:30,360 --> 01:04:39,880
that I should this will be helpful for this exact presentation to be made to the full board.

624
01:04:39,880 --> 01:04:45,440
Yeah, so I think you have a, and I have a, I have a personal opinion.

625
01:04:47,680 --> 01:04:48,200
Sure,

626
01:04:51,030 --> 01:04:55,910
um, and looking at this water or photo bill, like first of all, my name is Jim Coel.

627
01:04:57,110 --> 01:04:59,970
And I've looked at the water or photo billet.

628
01:05:00,000 --> 01:05:06,480
And I have a couple of observations that could profoundly impact your study.

629
01:05:07,960 --> 01:05:19,400
The first one, as an example, if we suddenly cut our water consumption in half, your water bill would not go down.

630
01:05:19,400 --> 01:05:24,180
In vision, you have a bucket of water that we're all consuming.

631
01:05:25,360 --> 01:05:33,660
On top of that bucket, San Jose Water Company is loading all their costs, operating costs,

632
01:05:34,140 --> 01:05:39,600
etc., they're asset, amortization, recovery, on and on and on, their profits.

633
01:05:40,240 --> 01:05:45,020
You suddenly drop that water in half, that formula doesn't change.

634
01:05:46,020 --> 01:05:48,860
So your water bill doesn't change at all.

635
01:05:48,860 --> 01:05:55,920
That stays the same. They have to recover all those costs and make their money.

636
01:05:57,240 --> 01:06:06,860
The second observation is today, we all realize that about 40-50% of our landscaping is consuming

637
01:06:06,860 --> 01:06:15,480
the water here in the valley. If you suddenly reduced all the landscaping costs through water conservation,

638
01:06:15,480 --> 01:06:25,540
going back to that bucket. Your cost isn't going to change. The third observation is, if you

639
01:06:25,540 --> 01:06:33,850
suddenly, what's going on today because of the drive to improve water consumption or reduce it,

640
01:06:35,060 --> 01:06:42,680
because of the water conservation objectives, San Jose water charges much higher rates for

641
01:06:42,680 --> 01:06:49,710
acre foot consumed as you consume more water. The end effect of that is today.

642
01:06:51,600 --> 01:07:00,640
Landowners with landscaping are actually compensating the people who are living in condominiums

643
01:07:00,640 --> 01:07:08,100
and apartments who have no landscaping. Their water bill is actually lower than it would be

644
01:07:08,100 --> 01:07:16,740
because of this compensation effect from landscaping water costs. So when you get into water or

645
01:07:16,740 --> 01:07:24,280
affordability, it's much more complex than you're kind of portraying. You have to look at the

646
01:07:24,280 --> 01:07:30,400
entire picture. And I don't think I got that perspective from the way you were discussing this.

647
01:07:31,880 --> 01:07:36,380
That's right. Thank you.

648
01:07:36,440 --> 01:07:37,240
Now I want your direction.

649
01:07:39,020 --> 01:07:41,200
Well, this was that. That's what this is.

650
01:07:41,280 --> 01:07:42,820
Do we want to put more information?

651
01:07:43,660 --> 01:07:48,480
I have a personal opinion that we'll hear from director Keegan.

652
01:07:48,960 --> 01:07:55,200
I think that maybe a reporting the non agenda member to the board,

653
01:07:55,460 --> 01:07:56,680
that about this thing is starting.

654
01:07:56,680 --> 01:08:03,800
And then when we have a little bit more concrete information and do a presentation to the

655
01:08:03,800 --> 01:08:09,860
football world, we'll get more and more a comment in directions from the football world.

656
01:08:09,960 --> 01:08:11,880
That's just my personal opinion.

657
01:08:14,580 --> 01:08:15,820
Thank you.

658
01:08:15,980 --> 01:08:18,740
So I actually have a slightly different perspective.

659
01:08:19,060 --> 01:08:26,420
I don't know that presenting it to the board at this point would be so much for soliciting

660
01:08:26,420 --> 01:08:31,080
questions and information. I think it would be more informative and informative to the board

661
01:08:31,080 --> 01:08:36,600
into the public because we've been doing things for a very long way, long time in a certain

662
01:08:36,600 --> 01:08:42,500
way. And now we're basically saying, hey, maybe there's a different way to look at things, you know,

663
01:08:42,540 --> 01:08:51,280
a more analytical kind of way. And I personally think that it would be exciting to the board as a whole

664
01:08:51,280 --> 01:08:54,980
as well as to the public and I don't think the public reads

665
01:08:54,980 --> 01:08:58,260
are non-agenda memos and I think we can see we don't have

666
01:08:58,260 --> 01:09:01,500
many members of the public, you know, participating here.

667
01:09:02,020 --> 01:09:06,460
So I just like, as you can tell from my comment about maybe we could

668
01:09:06,460 --> 01:09:08,960
do something at Aqua about what we're doing.

669
01:09:09,020 --> 01:09:14,420
I would love to publicize this and have that same sense of excitement

670
01:09:14,420 --> 01:09:18,240
with the full board and the larger community that I think we have here.

671
01:09:20,160 --> 01:09:26,320
So, do we want to have some more information to us before we find the final studies of them?

672
01:09:26,740 --> 01:09:34,480
I believe Director Keegan is indicating that it will be informative to the board.

673
01:09:35,040 --> 01:09:37,660
That is the exact same presentation to the board.

674
01:09:38,020 --> 01:09:40,840
More information for the board's information.

675
01:09:41,740 --> 01:09:42,900
I'm fine with that.

676
01:09:43,500 --> 01:09:43,900
Good question.

677
01:09:44,580 --> 01:09:50,160
It's going to appear in the microphone, shut yours off, shut yours off.

678
01:10:00,000 --> 01:10:06,140
I have this is partly to echo the observations that were just made.

679
01:10:08,960 --> 01:10:11,480
The idea of looking at household

680
01:10:11,480 --> 01:10:19,240
income, number one, you know, breaking it down to median 40th percentile, 20th percentile, and so on.

681
01:10:19,700 --> 01:10:27,240
I think under estimates, the difficulty you will have in being able to predict affordability

682
01:10:27,240 --> 01:10:33,260
based upon that income. As an example, to very close friends of ours,

683
01:10:34,440 --> 01:10:40,040
basically stopped using any water other than what came out of the tap in their house.

684
01:10:42,200 --> 01:10:48,460
And everything in their yard died. They were both elderly, and they were both

685
01:10:48,760 --> 01:10:55,240
even though they were professionals, and their income was reasonable. Both had cancer,

686
01:10:55,240 --> 01:11:04,840
both were basically tapped out financially for the cost of that. There's a lot of hidden bills

687
01:11:04,840 --> 01:11:10,980
that are not really obvious when you're looking at a median income or an income or the certain

688
01:11:10,980 --> 01:11:19,260
percentile, especially in this valley. So that's, I'd like you to figure that in when you look at,

689
01:11:19,260 --> 01:11:25,100
you know, what is the affordability here given their income? The other idea is that, again,

690
01:11:25,100 --> 01:11:32,600
to echo the previous comments, you're going to see more and more people just opting out of

691
01:11:32,600 --> 01:11:36,880
watering their yards. I mean, I already see it in my neighborhood. There are just people who just

692
01:11:36,880 --> 01:11:43,160
don't and you're going to see more and more of that and what that means is the price for everyone

693
01:11:43,160 --> 01:11:51,370
is going to go up because the input costs are always the same. So that's eventually going to reach

694
01:11:51,370 --> 01:11:59,250
a tipping point where people are just not going to accept it. So I'd like you to consider

695
01:11:59,250 --> 01:12:06,090
that there are amplifications, the consequences of just not changing the cost structure

696
01:12:06,090 --> 01:12:11,810
because you've got this many input bills and doesn't matter how much water people use they're

697
01:12:11,810 --> 01:12:17,870
going to, their bill is going to go up and up and up. That's an issue. So I just want to make that

698
01:12:19,430 --> 01:12:22,570
We have an Arthur Miller killer,

699
01:12:24,780 --> 01:12:26,340
go right ahead. Arthur Miller.

700
01:12:27,380 --> 01:12:29,600
Thank you very much for your presentation.

701
01:12:30,180 --> 01:12:35,800
One thing is that the input costs are dependent on how much water we bring in to the county

702
01:12:35,800 --> 01:12:41,960
through various means and sometimes there are more expensive ways to bring in more water to the county

703
01:12:41,960 --> 01:12:46,800
and if you choose to bring in more water, that can be very expensive.

704
01:12:46,800 --> 01:12:49,140
So therefore, incarceration could reduce

705
01:12:49,140 --> 01:12:52,540
about a water we need to bring in the law and cost overall.

706
01:12:54,390 --> 01:12:55,890
Thank you.

707
01:12:56,170 --> 01:12:57,470
So with something like what we're going to do is

708
01:12:57,470 --> 01:12:59,230
you have a public meeting within the boards.

709
01:12:59,470 --> 01:13:02,030
So I'll be a public meeting at the same time,

710
01:13:02,390 --> 01:13:08,010
give Aqua, Regent Fibes, director of Rela.

711
01:13:08,310 --> 01:13:09,930
We can make sure that Aqua gets that information.

712
01:13:10,790 --> 01:13:11,030
Can I?

713
01:13:11,590 --> 01:13:12,570
Can I ask you something else?

714
01:13:12,730 --> 01:13:14,050
Yeah, thank you, Chair.

715
01:13:14,050 --> 01:13:21,790
I do think that both Gentleman's own comment makes sense.

716
01:13:22,030 --> 01:13:33,070
I'm hoping that it can be studied in this study, and which generated another question

717
01:13:33,070 --> 01:13:43,510
on my mind related to your comment that the water is made by users, it's set up this

718
01:13:43,510 --> 01:13:51,270
California and that has most of the implications and kind of are related to this gentleman's

719
01:13:51,990 --> 01:14:02,270
comments and so the and many water agents including us the water charges is we used this

720
01:14:02,270 --> 01:14:08,530
volumetric methodology to calculate the unicorns. So in theory said the the last

721
01:14:08,530 --> 01:14:13,330
whether we sell the more expensive the unit cost is going to be.

722
01:14:15,730 --> 01:14:23,450
So I don't have any solution, but I'm hoping that these issues

723
01:14:23,450 --> 01:14:29,130
can be studied in this consultant contract.

724
01:14:29,370 --> 01:14:33,970
And then just give us some perspective and future board

725
01:14:33,970 --> 01:14:35,090
to make decisions.

726
01:14:35,090 --> 01:14:42,830
all right. But that's the rest. Here we go. We're going to go to 4.4.

727
01:14:44,950 --> 01:14:49,370
Receive update. Discuss water conservation program savings. Number of the year.

728
01:14:50,170 --> 01:14:55,130
Twenty twenty three recommendation. Receive update. Discuss water conservation program savings.

729
01:14:55,890 --> 01:14:58,170
Number four, fiscal year 2023.

730
01:14:59,670 --> 01:14:59,970
Here we go.

731
01:15:00,000 --> 01:15:25,460
Some Berks senior wire conservation specialist. Today you receive an overview on some program highlights, our long-term savings, progress to date through June 30, 2023. Also information on how we monitor and track our long-term savings, information on what programs drive those savings trends and a little bit on policy and next steps.

732
01:15:28,180 --> 01:15:33,260
Valley Water Offers over 20 water conservation programs. We offer something for every

733
01:15:34,200 --> 01:15:40,600
every person, single family home, multifamily, low or high density, business, school,

734
01:15:40,900 --> 01:15:46,420
or government facility. Our programs include combinations of rebate funding, direct

735
01:15:46,420 --> 01:15:53,160
insulation services, technical assistance, and education. And it's a lot, but I would reference

736
01:15:53,160 --> 01:15:58,500
attachment to on page 107 of your packet where you'll see our public facing

737
01:15:58,500 --> 01:16:01,160
water conservation program flyer.

738
01:16:03,650 --> 01:16:07,230
But a simpler way to look at our program options is this really cool

739
01:16:07,230 --> 01:16:10,770
conservation infographic that's available at waterstattings.org.

740
01:16:11,530 --> 01:16:15,930
We want to use technology in how we can communicate our programs

741
01:16:15,930 --> 01:16:18,450
holistically and as options from the public.

742
01:16:18,450 --> 01:16:28,290
So, just like Director Keegan and mentioned people like they have different styles, they have different needs and maybe have different goals.

743
01:16:29,550 --> 01:16:34,450
So, landscape transformation for a lot of people may mean converting your turf to water-wise plants,

744
01:16:34,710 --> 01:16:39,890
but it also means upgrading your irrigation equipment or installing rainwater capture or graywater abuse.

745
01:16:40,070 --> 01:16:47,250
And this interactive tool helps you poke around this model, model home and understand what kinds of programs we have

746
01:16:47,250 --> 01:16:50,530
that you can participate in and many of these programs of

747
01:16:50,530 --> 01:16:51,910
us majority of them noted in the

748
01:16:51,910 --> 01:16:54,890
demographic contribute to our long term savings.

749
01:17:00,690 --> 01:17:04,770
By 2030, we need to save 99,000 acre feet per year.

750
01:17:05,210 --> 01:17:08,230
And by 2024, that goes up to 110,000

751
01:17:08,230 --> 01:17:11,410
acre feet per year, as you heard in the earlier presentation.

752
01:17:11,970 --> 01:17:18,790
Today, we are saving 83,174 acre feet per year, which I'll

753
01:17:18,790 --> 01:17:21,070
dive into towards the end of the presentation.

754
01:17:22,730 --> 01:17:27,050
But how do we know how much we're saving and where that savings coming from?

755
01:17:27,150 --> 01:17:29,710
We know it through our our country, it's in savings model.

756
01:17:30,630 --> 01:17:34,930
We also know that three quarters of our savings to date has been the residential sector.

757
01:17:35,690 --> 01:17:39,990
Over 84% of our savings to date has been plumbing related.

758
01:17:40,950 --> 01:17:44,630
Toilet retrofits, shower head distribution, bosset earwaters.

759
01:17:45,710 --> 01:17:48,050
So how are we going to hit these long term targets?

760
01:17:48,050 --> 01:17:54,090
83,000 acre feet is pretty close to 99,000, but seven years we're going to go by very quickly.

761
01:17:55,050 --> 01:18:03,090
So our conservation savings model is a quick plug that we had a more thorough item on this discussion on this topic.

762
01:18:03,550 --> 01:18:08,010
Back in the March 2023 water conservation demand management committee.

763
01:18:08,450 --> 01:18:14,330
But effectively it's a customized version of a national model developed by the Alliance for water efficiency.

764
01:18:14,330 --> 01:18:21,290
It helps us track and monitor our programs over time, including cost effectiveness, what

765
01:18:21,290 --> 01:18:26,510
certain programs save compared to others, how long that savings gets sustained.

766
01:18:27,270 --> 01:18:32,830
And it was a primary tool using developing our water contraptions strategic plan.

767
01:18:33,030 --> 01:18:38,890
That's strategic plan is a public document available at water savings org and that plan gave us

768
01:18:38,890 --> 01:18:41,750
the blueprint for our success by 2030.

769
01:18:41,750 --> 01:18:48,130
And that blueprint identified really three core recommendations, sustaining drought level

770
01:18:48,130 --> 01:18:52,570
purpose of patient and non-drow years, leaning more into outdoor conservation.

771
01:18:53,050 --> 01:18:58,570
And again, 84% of our savings today has been indoor, really that the amount of juice

772
01:18:58,570 --> 01:19:04,230
left that we can get from showerhead distributions and other short-term changes, it's getting

773
01:19:04,230 --> 01:19:04,950
less and less.

774
01:19:05,090 --> 01:19:09,930
And it becomes more and more critical for us to leverage more outdoor conservation programs.

775
01:19:09,930 --> 01:19:18,590
The third component of strategic plan is about increasing participation in the commercial, industrial, institutional and multi-family sectors.

776
01:19:19,130 --> 01:19:25,930
These sectors are notoriously challenging to generate participation from.

777
01:19:26,110 --> 01:19:29,170
They require relationship building, stakeholder engagement.

778
01:19:30,510 --> 01:19:38,750
But on the flip side, you can get immense amount of savings from a single applicant that would take probably dozens or more applications

779
01:19:38,750 --> 01:19:42,050
from a single family home just to get the same level of savings.

780
01:19:42,770 --> 01:19:46,190
And lastly, on this strategic plan, it's not just a report on a shelf,

781
01:19:46,450 --> 01:19:52,270
though it is on the shelf and my cubicle, we did develop an internal staff tool to help use

782
01:19:52,270 --> 01:19:55,670
that strategic plan's data as a decision support tool.

783
01:19:56,290 --> 01:19:59,970
And what that means is that in that document, we have...

784
01:20:00,000 --> 01:20:20,120
We have, we have analyses for certain priority programs of high participation areas and low participation areas, and this interactive tools available to staff to help us test out different ways of marketing and leaning into successful approaches and some areas and leaning into new approaches and other areas.

785
01:20:20,520 --> 01:20:26,460
And I'm really proud of that continual improvement collaboration that we've developed with multiple units of Elliott water.

786
01:20:26,460 --> 01:20:28,980
So, the model, what goes into the model?

787
01:20:29,860 --> 01:20:30,900
It's a 1992 baseline.

788
01:20:31,080 --> 01:20:33,700
That was the first year we offered conservation programs.

789
01:20:33,960 --> 01:20:36,440
It looks at population and building types,

790
01:20:36,660 --> 01:20:39,380
because different buildings are going to use water different ways.

791
01:20:39,540 --> 01:20:42,420
Someone in a single family home,

792
01:20:43,380 --> 01:20:44,880
they're going to flush their toilet differently,

793
01:20:45,280 --> 01:20:47,340
then a stadium would.

794
01:20:48,240 --> 01:20:50,460
Savings get flushed a ton,

795
01:20:51,600 --> 01:20:52,760
you know, compared to a single family.

796
01:20:52,760 --> 01:20:55,020
So a lot of those factors go in to play as inputs.

797
01:20:55,360 --> 01:20:59,040
And we also use a lot of objectives, savings data, and studies.

798
01:20:59,340 --> 01:21:03,180
So there's a residential end use, study done, a number of years ago,

799
01:21:03,340 --> 01:21:06,060
that helped us understand what are the fixer saturation rates

800
01:21:06,060 --> 01:21:09,920
in the nationally, as well as that we could apply locally.

801
01:21:10,320 --> 01:21:13,760
What are the costs that we give for our programs?

802
01:21:14,320 --> 01:21:18,140
And then not only how much water do they save,

803
01:21:18,140 --> 01:21:20,400
how long will that savings last?

804
01:21:21,860 --> 01:21:29,620
Messaging savings, like from wire use reports, you can generate a lot of savings by notifying someone about a leak.

805
01:21:30,220 --> 01:21:35,620
But you probably won't remember what that report said years after the fact, right?

806
01:21:35,620 --> 01:21:38,820
I definitely wouldn't remember it five years ago into that future.

807
01:21:39,240 --> 01:21:46,380
But we also, as another example on the flip side, when you install irrigation equipment hardware,

808
01:21:46,380 --> 01:21:52,200
those pieces of equipment are going to be in place in generating savings for years,

809
01:21:52,420 --> 01:21:57,480
typically 10 years or longer. And so the model takes into these different

810
01:21:57,480 --> 01:22:03,400
interplays between how much does a program save, how long is it going to generate that savings for,

811
01:22:04,120 --> 01:22:11,700
and basically it creates an algorithm that ratchets our savings upward, ideally. And typically,

812
01:22:11,700 --> 01:22:18,700
Yes, it does. And for the outputs, we understand how our efficiency fixtures change over time.

813
01:22:18,820 --> 01:22:23,460
We know that over 90% of the shower heads in this county are already efficient.

814
01:22:24,240 --> 01:22:31,960
We know that only about 2% of parcels or less have participated in our landscape rebate programs.

815
01:22:32,560 --> 01:22:40,200
Even though we've converted millions of square feet, there is so much potential in outdoor conservation for us to meet our long term targets.

816
01:22:40,200 --> 01:23:00,060
And then it also outputs cost per acre foot and and other breakdowns that help us understand what types of strategies do we need to lean into to get the most benefit for this investment that we that we provide to our two million customers.

817
01:23:00,060 --> 01:23:05,800
Oh, and also noting, it also helps us understand that breakdown of active versus passive

818
01:23:05,800 --> 01:23:06,120
savings.

819
01:23:06,360 --> 01:23:12,300
And just touching on that comment from earlier, passive savings is co-related, toilets.

820
01:23:12,300 --> 01:23:15,620
You can only buy efficient toilets in California.

821
01:23:16,300 --> 01:23:17,320
That's passive savings.

822
01:23:17,860 --> 01:23:24,320
Active savings helps bend the curve of our progress towards a more reliable and sustainable

823
01:23:24,320 --> 01:23:25,200
community.

824
01:23:28,500 --> 01:23:34,800
83,174 acre feet per year saved as of June 30 of last year. Well, that means is if we

825
01:23:35,480 --> 01:23:40,340
stopped all of our programs and regulations got rolled back and there have been conversations

826
01:23:40,340 --> 01:23:46,980
about rolling back regulations, we would have to import another 83,000 acre foot per year just

827
01:23:46,980 --> 01:23:52,920
to be in the same spot that we are today. So, continual investment and continual expansion of

828
01:23:52,920 --> 01:23:55,380
how we invest from our programs is gonna be

829
01:23:55,380 --> 01:23:58,060
increasingly critical for it to hit our long-term targets.

830
01:23:58,680 --> 01:24:01,200
I want to to that point, I'd like to point out

831
01:24:01,200 --> 01:24:05,440
around like 2019, you see this little dip in this chart.

832
01:24:06,120 --> 01:24:08,620
And this is related to a couple of factors.

833
01:24:10,400 --> 01:24:14,280
We had just ended the 2014, 16 drought,

834
01:24:14,400 --> 01:24:16,240
been a couple years after the fact.

835
01:24:17,220 --> 01:24:20,420
So typically our drought level participation gets sustained

836
01:24:20,420 --> 01:24:22,420
for maybe a year or so after the drought,

837
01:24:22,420 --> 01:24:27,960
but it started dipping and then we had historic rainfall and our participation fell further.

838
01:24:28,540 --> 01:24:34,340
So instead of being a continual upper trend, we need to figure out how we can work collaboratively

839
01:24:34,340 --> 01:24:40,160
in sustaining drought level participation to not only continue upward but to accelerate this

840
01:24:40,160 --> 01:24:49,340
pace as cost effectively and using best practices that we can. Taking a step under the hood,

841
01:24:49,340 --> 01:24:53,180
what programs or driving these increases to our long-term programs.

842
01:24:53,680 --> 01:24:59,820
The Large Landscape Program provides site-specific water budgets to over 4,000 profit.

843
01:25:00,000 --> 01:25:07,780
Currently 4,000 properties in Santa Clara County. These are for CII, the commercial industrial and institutional properties in multi-family.

844
01:25:09,140 --> 01:25:19,540
What a water budget is, as you understand, like, you look at the microclimate, the landscaping, the size of the landscaping, you get a range of how much water you should be using.

845
01:25:19,540 --> 01:25:25,160
And then you get that compare to your actual wire use.

846
01:25:25,680 --> 01:25:28,000
And that budgeting tool includes a portal

847
01:25:28,000 --> 01:25:31,060
where different properties stakeholders can come together

848
01:25:31,060 --> 01:25:34,440
and look objectively at how effectively they're irrigating

849
01:25:34,440 --> 01:25:35,780
their very large landscapes.

850
01:25:36,500 --> 01:25:38,700
And if they're over budget, we pre-approved them

851
01:25:38,700 --> 01:25:40,800
to get an outdoor survey from us.

852
01:25:41,160 --> 01:25:44,400
And the outdoor surveys are really effective consulting services

853
01:25:44,400 --> 01:25:47,540
where we can get help them feed into our other programs.

854
01:25:49,260 --> 01:25:59,920
Effectively, and help them figure out what's going to make the most sense for them to maintain their property or upgrade their equipment to be as cost effective and water efficient as possible.

855
01:26:00,500 --> 01:26:03,420
Next is advanced metering infrastructure and water use reports.

856
01:26:03,720 --> 01:26:10,060
We provide funding to water companies to help advance advanced metering infrastructure and water use reports throughout the county.

857
01:26:10,060 --> 01:26:14,180
And what that means is it helps provide people near real-time

858
01:26:14,180 --> 01:26:15,340
leek alert notion.

859
01:26:15,840 --> 01:26:19,780
And also helps us understand how we can target messaging

860
01:26:19,780 --> 01:26:21,480
two different types of customers.

861
01:26:21,780 --> 01:26:24,520
We do have to work really closely with retailers to do this

862
01:26:24,520 --> 01:26:26,000
because they have the customer data.

863
01:26:26,960 --> 01:26:30,100
But we want to make sure that we're promoting programs

864
01:26:30,100 --> 01:26:34,280
are relevant and of interest that are going to sustain

865
01:26:34,280 --> 01:26:35,440
long-term conservation.

866
01:26:36,200 --> 01:26:38,840
And then the two other points I want to make on the slide

867
01:26:38,840 --> 01:26:42,520
landscape rebe program is divided into its three components,

868
01:26:43,240 --> 01:26:46,460
turf replacement, irrigation equipment, and rainwater capture.

869
01:26:46,940 --> 01:26:51,660
Together, the second largest driver of our long term savings,

870
01:26:52,800 --> 01:26:55,940
and the wet program, the water efficient technology program,

871
01:26:56,320 --> 01:27:00,520
that used to be a cornerstone program for generating CI-I savings,

872
01:27:00,940 --> 01:27:01,680
but it's challenging.

873
01:27:03,060 --> 01:27:05,920
It's challenging because it's a very flexible program.

874
01:27:05,920 --> 01:27:11,220
And like I mentioned at the start, these stakeholders require networking and relationship

875
01:27:11,220 --> 01:27:17,740
building in addition to us tweaking certain programs so that we can really communicate

876
01:27:17,740 --> 01:27:20,380
these options as options.

877
01:27:20,880 --> 01:27:22,660
It's not just one all beyond.

878
01:27:22,860 --> 01:27:28,280
We need full engagement across these programs as relevant as they can without overloading

879
01:27:28,280 --> 01:27:29,140
people of information.

880
01:27:29,140 --> 01:27:36,540
because then how do we transform that energy into action and that interest in action?

881
01:27:38,740 --> 01:27:43,020
And let's take a step back. So we talked a lot about programs that help programs or driving

882
01:27:43,020 --> 01:27:50,540
our positive increases and our long term savings. There's policy changes at the local

883
01:27:50,540 --> 01:27:56,680
value water level as well as the state level. The water waste prohibitions that the board

884
01:27:56,680 --> 01:28:00,580
past last year includes common sense prohibitions,

885
01:28:00,580 --> 01:28:04,360
as well as no irrigating non-functional turf

886
01:28:04,360 --> 01:28:06,140
during active drought calls.

887
01:28:06,520 --> 01:28:11,440
The state has also passed the ban on irrigating non-functional turf.

888
01:28:12,200 --> 01:28:13,740
Our rules are stricter,

889
01:28:14,160 --> 01:28:16,860
and the state also has a ramp up period.

890
01:28:17,800 --> 01:28:19,820
And then the last column is existing programs

891
01:28:19,820 --> 01:28:21,160
that support those policies.

892
01:28:21,780 --> 01:28:24,260
So the large landscape program I mentioned earlier

893
01:28:24,260 --> 01:28:29,460
that can help understand like the budgets and where they can make where a site can make investments

894
01:28:29,460 --> 01:28:35,220
to be in compliance with those rules. The waterways program can be used to inform and report on

895
01:28:35,220 --> 01:28:39,520
people who are not following that policy in the landscape rebe program provides that funding to

896
01:28:39,520 --> 01:28:48,280
help them make that change today. And then the conservation guiding principles provides connections

897
01:28:48,280 --> 01:28:56,000
to our Conservation Strategic Plan and in parallel the Conservation Framework establishes these urban

898
01:28:56,000 --> 01:29:00,560
worries objectives that our water retailers will need to comply with. So they will have

899
01:29:00,560 --> 01:29:06,460
service area budgets that are based on indoor and outdoor worries efficiency, as well as

900
01:29:06,460 --> 01:29:13,740
CIi performance metrics. And so the good news is our existing suite of programs support these policies.

901
01:29:14,280 --> 01:29:17,740
And if we can leverage them strategically and effectively we can leverage

902
01:29:17,740 --> 01:29:24,000
participation more into these programs and help us accelerate our progress towards our 2030 targets.

903
01:29:29,020 --> 01:29:33,460
And as a reminder, some of our milestones from the last route we converted over 3 million

904
01:29:33,460 --> 01:29:39,220
square feet of turf in just a couple years. That's incredibly impressive. We actually run some of

905
01:29:39,220 --> 01:29:46,600
that most conservation programs and we have some of the highest participation rates as our peers.

906
01:29:46,600 --> 01:29:51,980
as Metra had mentioned, we are undergoing a study to really refine and look under the hood at

907
01:29:51,980 --> 01:29:57,520
at how strong of leaders we are in this realm and where we can pivot to really showcase our work

908
01:29:57,520 --> 01:29:59,960
even more effectively. But the question that comes...

909
01:30:00,000 --> 01:30:02,160
How do we keep this momentum going?

910
01:30:04,300 --> 01:30:07,980
Our program support long-term conservation. These savings numbers

911
01:30:07,980 --> 01:30:13,760
don't reflect short-term changes like if someone left their lawn, go brown for a year. They can just

912
01:30:13,760 --> 01:30:18,940
start a year again. Those savings go away. We want them to participate in our programs and transform

913
01:30:18,940 --> 01:30:25,780
how they use water and really transform our community to be more reliable and sustainable. So how do

914
01:30:25,780 --> 01:30:30,000
make these milestones year to year regardless of how dry or wet it might be.

915
01:30:33,200 --> 01:30:37,200
And then I didn't mention the model water efficient new development ordinance, but that is

916
01:30:37,200 --> 01:30:41,940
another policy that could help us hit our long-term targets cost effectively.

917
01:30:43,440 --> 01:30:54,520
And as we look at our next steps, the savings we want to achieve every year is around 2400

918
01:30:55,740 --> 01:31:05,340
Our five year average is only around 2000 acre feet per year, but it's, this is a good update because we increase savings over 3000 acre feet per year.

919
01:31:05,480 --> 01:31:13,340
Now the question is how do we leverage this momentum that we're out of a drought and, and we don't want to see what happened after the prior drought.

920
01:31:13,480 --> 01:31:17,880
We want to keep this momentum going and part of that's also looking at our programs.

921
01:31:17,880 --> 01:31:26,200
we our team runs at least one pilot every year and typically several in ways of testing these

922
01:31:26,200 --> 01:31:30,800
different approaches more effectively and the benchmark studies again are going to help us

923
01:31:30,800 --> 01:31:35,820
evaluate not only our program offerings and resource allocations but also the incentive levels

924
01:31:35,820 --> 01:31:40,740
compared to our peers and we'll continue to look at how we can further leverage local and

925
01:31:40,740 --> 01:31:45,800
statewide policies to really answer this million-dollar question because this is a question for water

926
01:31:45,800 --> 01:31:49,940
conservation professionals throughout California and throughout the United States is how do

927
01:31:49,940 --> 01:31:55,260
we get participation in the CIi multi-family sector. And I look really look forward to working

928
01:31:55,260 --> 01:32:01,260
collaboratively with in Valley Water in moving these next steps forward. I'm happy to open

929
01:32:01,260 --> 01:32:07,680
with for any questions. Thank you, Justin. Bye. No questions, just kind of. Thank you for this report.

930
01:32:07,880 --> 01:32:13,580
We do this on a yearly basis to monitor the, yeah, result. Yeah. Thank you. Thank you. Good job.

931
01:32:15,860 --> 01:32:17,860
Thank you. Any public comments?

932
01:32:19,580 --> 01:32:22,080
There are no hands raised electronically, and I have no card.

933
01:32:22,440 --> 01:32:24,880
Oh, no, no, no, no.

934
01:32:25,220 --> 01:32:26,700
You might as well sit at the table, doctor.

935
01:32:37,740 --> 01:32:42,740
I appreciate this diagram or this this page that kind of lists some

936
01:32:44,920 --> 01:32:49,480
opportunities that the puddle populates has to partake of some of these programs.

937
01:32:52,220 --> 01:32:59,880
But when I looked at them, I haven't found them as effective as I hoped they would be.

938
01:33:00,020 --> 01:33:06,660
And so I would like to encourage you guys to develop models, a number of different models

939
01:33:06,660 --> 01:33:09,140
for, say, a gray water system.

940
01:33:10,060 --> 01:33:15,080
You could pick a number of different houses and you could go commercial if you wanted, but

941
01:33:15,080 --> 01:33:22,600
especially houses people I talk to who want who are considering a gray water system, but have no idea what's involved in it.

942
01:33:22,880 --> 01:33:27,220
And when they go to the site like this, they see something, but they don't really have enough information.

943
01:33:27,520 --> 01:33:32,020
So if you had a model, you know, like two or three or four or five examples.

944
01:33:32,140 --> 01:33:36,000
So this is exactly what's done. These are the components. This is what it costs.

945
01:33:36,420 --> 01:33:41,160
That would be tremendously useful, more than I've encountered here.

946
01:33:41,160 --> 01:33:47,340
The same is too probably with a groundwater capture system although I haven't looked at that site actually.

947
01:33:49,280 --> 01:33:54,940
And then the final thing is one thing I've seen is landscape rebate program.

948
01:33:56,620 --> 01:34:08,420
But are you guys working with, say, our city forest or other organizations that are trying to plant trees and neighborhoods to cool them down so use less water.

949
01:34:08,420 --> 01:34:15,260
And so, you know, are you doing that, is it something you're thinking about or you do it or what?

950
01:34:15,540 --> 01:34:16,700
Yes, yes, yes, yes.

951
01:34:22,640 --> 01:34:22,820
Okay.

952
01:34:23,460 --> 01:34:28,560
Currently, we have a contract with our city for us to administer our long-busters program,

953
01:34:28,720 --> 01:34:31,720
which is a direct installation program for low income.

954
01:34:31,720 --> 01:34:34,920
So they were moving lines and they were busy with low water use plants.

955
01:34:36,080 --> 01:34:38,920
We are in the process of enhancing that program.

956
01:34:39,080 --> 01:34:42,000
And so we have a request for proposal that was out.

957
01:34:42,000 --> 01:34:49,660
in the process of negotiating a contract for that, it's an enhanced program, part of that

958
01:34:49,660 --> 01:34:56,440
will be including tree planting within it so within those sites. And then, yeah, just

959
01:34:56,440 --> 01:34:59,980
within our rebate program as well. You know, we do require a certain number of plants.

960
01:35:00,000 --> 01:35:13,180
Okay. I participated actually on part of our city forest. And so I go out there long, busting myself. But yeah, I didn't I didn't know that you guys actually were working with them.

961
01:35:15,060 --> 01:35:16,080
Thank you, Dr.

962
01:35:16,960 --> 01:35:17,520
Thank you, Justin.

963
01:35:18,540 --> 01:35:26,000
We're going to have we have another meeting come up here. What I thought that's going to be coming up soon here. So move on. Thank you very much. Appreciate it.

964
01:35:26,000 --> 01:35:32,980
to go to 4.5. Recommendation to receive an informational update on the cost associated with

965
01:35:32,980 --> 01:35:35,180
Pacheco Reservoir Expansion Project.

966
01:35:38,620 --> 01:35:40,260
Mr. Pacheco, go right ahead.

967
01:35:54,000 --> 01:35:59,400
Okay, there we go. The Centos check there. Okay. Good afternoon, committee. I'm Ryan McCarty,

968
01:35:59,600 --> 01:36:05,400
the deputy operating officer of the dam safety and capital delivery division. Here to give an update

969
01:36:05,400 --> 01:36:10,800
on the Pacheco Reservoir Expansion Project. And this is focused on the cost and financing. So

970
01:36:10,800 --> 01:36:17,720
Back last year, we took an item to the board to break out a series of presentations on Pacheco,

971
01:36:17,820 --> 01:36:24,260
to get into a little bit more detail on a decided list of topics, and this is our second

972
01:36:24,260 --> 01:36:29,520
in that series. And this one's on the cost and financing, so I'll be focusing on the total project

973
01:36:29,520 --> 01:36:34,200
costs, how we came up with that, our expenditures to date, and then I'll get into the financing

974
01:36:34,200 --> 01:36:39,260
of the project as well. So I only have about seven slides with content, not a whole lot,

975
01:36:39,260 --> 01:36:48,040
And so we're really looking for input from the committee and the public on what we could add to the presentation to bring to the full board, hopefully next month.

976
01:36:48,840 --> 01:36:54,940
So feel free once I get through to reference the slide numbers, we can go back and take some notes and add what you need to.

977
01:36:55,200 --> 01:37:02,580
We already received some input from the public, appreciate that. I think that's great to to get questions and interest added to it.

978
01:37:05,480 --> 01:37:06,000
So

979
01:37:06,000 --> 01:37:31,000
Okay, so the total project cost, so here we start with this gray rectangle on the left with our 30% design construction cost estimates, this is how we break up the project and all the different work activities from the design features that we've we've come up with for the the dam spillway pipeline power roadways all the different kind of attributes and pieces of the project.

980
01:37:31,000 --> 01:37:39,960
So we do a bottom up cost estimate survey of all those quantities and looking at the prices for that type of work at the time.

981
01:37:40,120 --> 01:37:41,640
So this was done in April 2022.

982
01:37:42,620 --> 01:37:46,960
Came up with about 1.8 billion was our construction cost estimate.

983
01:37:48,320 --> 01:37:50,860
That includes about a 35% contingency.

984
01:37:51,420 --> 01:37:57,680
So 18% of that contingency is applied to how that cost estimate could increase before we get to construction.

985
01:37:57,680 --> 01:38:18,500
And then we have a 15% construction cost contingencies and once we come up with that number we had another 15% for what could happen during construction. So that gets us to about 1.8 billion and then we have our construction management services and design services during construction that brings us to about 2 billion for our construction base. So that's where we get that first rectangle.

986
01:38:19,180 --> 01:38:25,160
Moving to the next bubble there, the five year CIP total project costs without inflation.

987
01:38:25,620 --> 01:38:33,820
So this is adding in our design services, and I'll get to the breakdown of that this $200 million change on the next slide.

988
01:38:33,920 --> 01:38:39,840
And that's broken down between planning design, environmental real estate right away, all that kind of stuff.

989
01:38:39,960 --> 01:38:45,000
So this is still uninflated, we're at $2.2 billion that's the raw cost in today's dollars.

990
01:38:46,140 --> 01:38:54,000
The next bubble here is where we add this information into the 5-year CIP and we include

991
01:38:54,000 --> 01:38:58,240
this total project costs and it automatically calculates the inflation because we dice up

992
01:38:58,240 --> 01:39:03,000
all these costs throughout the years of design and construction and what we think our schedule

993
01:39:03,000 --> 01:39:10,120
is and this applies a different interest or inflation rate for each of those years. So you can

994
01:39:10,120 --> 01:39:18,140
there's a discrepancy here between the FY2428 and the FY2529. That's because the interest rates were

995
01:39:18,140 --> 01:39:22,840
re-adjusted for those years and they did an analysis and it was somewhere around 5% each year

996
01:39:22,840 --> 01:39:28,500
and they moved them up and actually the cost went down with this inflation because they had more

997
01:39:28,500 --> 01:39:34,360
inflation in the coming years and current years and lower inflation in the out years. So that's just

998
01:39:34,360 --> 01:39:36,640
from the model that they came up with.

999
01:39:36,940 --> 01:39:38,680
So that's why you see that discrepancy there.

1000
01:39:40,260 --> 01:39:41,680
So then we get into the next two bubbles.

1001
01:39:41,840 --> 01:39:43,780
And these are our financed costs.

1002
01:39:44,160 --> 01:39:46,700
So this is kind of the whole point of getting into this detail

1003
01:39:46,700 --> 01:39:50,200
because we have a lot of confusion on finance costs

1004
01:39:50,200 --> 01:39:52,060
and with the total project cost is.

1005
01:39:52,120 --> 01:39:53,780
Usually we just talk about things that's

1006
01:39:53,780 --> 01:39:56,500
the total project costs in our CIP for all of our other projects.

1007
01:39:56,680 --> 01:39:59,960
That's how we develop our budgets year over year to know.

1008
01:40:00,000 --> 01:40:07,160
How much money will need to fund these products. So, talking about financing now. So, this is with the 35% partnership.

1009
01:40:07,360 --> 01:40:14,920
We'll get into this a little bit later. And so, our total finance cost with partnerships would be 3.2 billion. At the end,

1010
01:40:15,040 --> 01:40:19,640
and there's a slide that goes through all the calculations later on. We'll get into this more detail.

1011
01:40:20,260 --> 01:40:25,380
And then, finally, without partnerships, this, this largest bubble is $5.5 billion.

1012
01:40:25,380 --> 01:40:30,100
in the FY2428, and then FY2529, it's about 5.3.

1013
01:40:30,340 --> 01:40:33,580
So again, that discrepancy on how the interest changes

1014
01:40:33,580 --> 01:40:36,320
throughout those years in the future.

1015
01:40:36,560 --> 01:40:38,140
So that's the discrepancy there.

1016
01:40:42,540 --> 01:40:45,160
OK, so this is a breakdown of that total project costs

1017
01:40:45,160 --> 01:40:50,340
that includes the $2 billion for the construction phase.

1018
01:40:50,780 --> 01:40:53,440
And this is dollars are in thousands on the slide.

1019
01:40:53,720 --> 01:40:56,340
So just add a comma and $30 of all these numbers.

1020
01:40:57,180 --> 01:41:02,280
So you can see that the uninflated cost there, the full ring is $2.2 billion on the right.

1021
01:41:02,300 --> 01:41:08,600
You can see the box is breaking down the planning design, environmental right away is includes real estate.

1022
01:41:09,000 --> 01:41:15,540
And then the construction there, close out and then the task zero zero zero zero is a miscellaneous things that don't fall in these categories.

1023
01:41:16,280 --> 01:41:26,320
So this is the breakdown where some of these things up into our total project cost, then it goes into the CIP model and takes our inflated cost up to about 2.7 million.

1024
01:41:26,320 --> 01:41:32,080
$5 billion. Also want to note between real state and our construction costs, that's where we have

1025
01:41:32,080 --> 01:41:37,800
$50 million in mitigation costs in our budget. That's a common question to get as well. So there

1026
01:41:37,800 --> 01:41:42,340
is some budget there for that. And we haven't spent any of that yet.

1027
01:41:45,950 --> 01:41:47,290
Okay, moving to expenditures

1028
01:41:47,290 --> 01:41:54,790
to date. So this bar graph on the top shows that we've spent about $80.5 million to date. This is

1029
01:41:54,790 --> 01:42:01,070
to March 29th. So I think we've done about another million or two since then. And then this has

1030
01:42:01,070 --> 01:42:07,430
compared to the total project cost in the CIP inflated at 2.75 billion. So you can see we're

1031
01:42:07,430 --> 01:42:14,210
right here, then the box is below, breakdown, the expenditures by phase and type. So you can see the

1032
01:42:14,210 --> 01:42:19,950
first column there is Valley Water Labor. So that's what we have spent on our own staff internally

1033
01:42:19,950 --> 01:42:22,230
on the project for each of these categories.

1034
01:42:22,790 --> 01:42:25,070
And then the next column, the services and supplies.

1035
01:42:25,250 --> 01:42:28,170
These are our consultants and an outside contractors

1036
01:42:28,660 --> 01:42:30,250
that assist us with the project.

1037
01:42:30,410 --> 01:42:34,190
So you can see about 15 million spent on value water labor

1038
01:42:34,190 --> 01:42:37,490
and 65 million spent on the services and supplies.

1039
01:42:37,710 --> 01:42:39,630
They're a total of 80.5.

1040
01:42:39,890 --> 01:42:43,930
And then the chart on the right shows the breakdown

1041
01:42:43,930 --> 01:42:45,990
on the different services and supplies.

1042
01:42:46,270 --> 01:42:48,450
See most of it is to our consultants.

1043
01:42:48,450 --> 01:43:00,270
about 50 million of that 61.6 million is to our main contract with AECOM that includes about 14 other consultants on that contract, but that's about 50 million of that 61 million.

1044
01:43:00,890 --> 01:43:03,490
So that's not listed on here, but just to throw that in.

1045
01:43:04,150 --> 01:43:18,050
In case there's a question and then going through the rest of the items there, much smaller, the biggest cost on the public agency category is our $1.8 million we've paid to DSOD for our permit fee and that allows them to review our project.

1046
01:43:18,050 --> 01:43:20,630
and work with us, but that's how the permit works.

1047
01:43:20,750 --> 01:43:24,270
That's a partial payment of what the full permit fee will be for the project.

1048
01:43:25,290 --> 01:43:28,510
And you can see the list of the other costs there listed below.

1049
01:43:33,280 --> 01:43:38,020
Okay, so getting into the project funding, just want to know this is not a pie chart showing

1050
01:43:38,020 --> 01:43:38,580
shares.

1051
01:43:38,600 --> 01:43:43,100
This is just showing four different sources of funding in a nice graphic way.

1052
01:43:43,440 --> 01:43:46,720
So starting at the top right, the value water rate pair.

1053
01:43:46,820 --> 01:43:51,660
So this is the main point of funding for the project, the water utility fund.

1054
01:43:51,660 --> 01:44:05,140
See 84% from North County zone W2 and 16% from South County zones W5 7 and 8 so we've talked about that in detail in the next slide. We'll show that the breakdown on the on a table.

1055
01:44:06,080 --> 01:44:15,020
See our with the alone for $1.4 billion. It's about half of the project total project costs that we did close on that in October of 2023.

1056
01:44:15,020 --> 01:44:22,080
And we're expecting a series of loans over the construction period, taking out what we need at the time.

1057
01:44:22,320 --> 01:44:26,800
And that's a matching about 49% on each one.

1058
01:44:27,060 --> 01:44:30,180
And you can see our $92 million or for planning design.

1059
01:44:30,420 --> 01:44:33,720
We're hoping to move into that in 2032.

1060
01:44:34,820 --> 01:44:37,920
Moving around to the WISIP grants is the CWC funding.

1061
01:44:38,100 --> 01:44:42,520
We've got a conditional award of $504 million back in 2018.

1062
01:44:42,520 --> 01:44:46,780
actually it was less the time I think it was 487 and they've since increased it to

1063
01:44:46,780 --> 01:44:49,580
to 504 along with the other wizard projects.

1064
01:44:51,500 --> 01:44:56,400
So we did get a reimbursement through early funding and actually this is a typo.26

1065
01:44:56,400 --> 01:44:59,600
million is 24 million on our early funding agreement.

1066
01:45:00,000 --> 01:45:21,360
I think we've received most of that except for the 10% retention and then the remainder of that conditional award will be available once the project is in construction. We have to get all of our approvals and permits in place in order to be eligible to receive the rest of the funding. So that will all happen during construction as well.

1067
01:45:21,360 --> 01:45:30,220
And then moving around to the top left, the value water partners, so we did have a target participation of 35% from board direction back in April 2021.

1068
01:45:30,520 --> 01:45:42,360
We presented a slide showing a range from zero to 35% in the board urged us to attempt to get the highest maximum participation that we could at 35%.

1069
01:45:43,080 --> 01:45:51,780
But I just want to note that there's no participation required for the CWC and the Water Commission that was just a board direction back in 2021.

1070
01:45:56,180 --> 01:45:59,600
Okay, so I'll do my best to articulate CFO Taylor here.

1071
01:45:59,720 --> 01:46:04,040
It's really good to go into this stuff, but going through this table we've shared this before.

1072
01:46:04,240 --> 01:46:11,700
We added a couple little notes to highlight here, but this is going through the payments and the financing in five year increments.

1073
01:46:11,700 --> 01:46:16,280
So you can see them, the left most column there, the five-year increments through our fiscal

1074
01:46:16,280 --> 01:46:22,600
years all the way through FY67, and in column B, you'll see the capital costs that we expect

1075
01:46:22,600 --> 01:46:26,700
that are built into our CIP model, each of those years.

1076
01:46:27,040 --> 01:46:29,840
Column C has our with-zip or prop one grant.

1077
01:46:29,940 --> 01:46:41,680
I just described for 504 million, and how we anticipate that will be drawn down, and then the

1078
01:46:41,680 --> 01:46:45,100
through our revenue bond financing through water utility.

1079
01:46:46,040 --> 01:46:48,220
And then we have what our payments back would be

1080
01:46:48,220 --> 01:46:50,840
that are not in parentheses for a wifida debt service

1081
01:46:50,840 --> 01:46:52,380
through all of those years.

1082
01:46:52,720 --> 01:46:56,180
And then also the bond debt service payments and column G.

1083
01:46:56,500 --> 01:47:00,520
And then column H, those in will are 35% partner payments

1084
01:47:00,520 --> 01:47:02,880
would be, so just taking a 35% share

1085
01:47:02,880 --> 01:47:05,120
what value water is paying and applying that

1086
01:47:05,120 --> 01:47:06,860
towards the project cost as well.

1087
01:47:06,980 --> 01:47:09,280
And you can see our net cash flow, column I.

1088
01:47:09,580 --> 01:47:11,660
And it gets you to our 3.2 bill

1089
01:47:11,660 --> 01:47:18,660
finance costs with partners and then if you just take partners out of the equation or at the 5.275 billion.

1090
01:47:20,380 --> 01:47:26,360
So just summing up all that that looks and then there's a some additional information on the next slide.

1091
01:47:26,480 --> 01:47:34,340
Breaking down with that means for the North County and groundwater charges and the average monthly impact to the average household.

1092
01:47:34,340 --> 01:47:45,420
so you can see an FY29 to 33, it's about $9.33 with out or with partners and 1095 without partners.

1093
01:47:45,600 --> 01:47:50,740
And so going through the rest of these ranges from FY34 to FY53, you can see there's quite a drastic

1094
01:47:50,740 --> 01:47:56,420
jump between the with partners and without partners and part of that because we start paying a lot more

1095
01:47:56,420 --> 01:48:04,120
of our withia debt service in that period of time. And then the same goes for FY54 to FY67 with that

1096
01:48:04,340 --> 01:48:09,200
changing the impact to the average household bill would be. In the down below just another

1097
01:48:09,200 --> 01:48:15,320
table summarizing similar information there, but then also including what the

1098
01:48:15,320 --> 01:48:19,960
POS per acre foot would be increased for each of those different scenarios.

1099
01:48:25,780 --> 01:48:30,280
Okay, this is the last slide. This is a summary of the WIFI programs. There's just a lot of

1100
01:48:30,280 --> 01:48:35,020
different notes about what the WIFI program is and how it works. I'll just highlight a few of them

1101
01:48:35,020 --> 01:48:40,660
that this with the program will fund up to 49% of our eligible project costs so we requested

1102
01:48:40,660 --> 01:48:49,000
that 1.4 billion and then just going through how the rate is set there on the interest

1103
01:48:49,000 --> 01:48:57,560
rate of, I think it's the fifth bullet, it's 0.01% above the US Treasury rate. We can pay

1104
01:48:57,560 --> 01:49:02,640
it back up to 35 years after the project has substantial completion so that they say that

1105
01:49:02,640 --> 01:49:05,160
that helps ensure intergenerational equity

1106
01:49:05,160 --> 01:49:07,240
from the bullets down below there.

1107
01:49:07,920 --> 01:49:10,840
And yeah, I think that's all highlight there,

1108
01:49:10,920 --> 01:49:13,360
but it's all out in front of you for your information.

1109
01:49:20,200 --> 01:49:20,540
Any questions?

1110
01:49:21,140 --> 01:49:23,260
Thank you Ryan, committee members, Barbara?

1111
01:49:24,040 --> 01:49:26,480
Yeah, so we have a hard stop in 10 minutes.

1112
01:49:27,340 --> 01:49:28,340
Is that what I heard?

1113
01:49:29,000 --> 01:49:29,480
Keep going.

1114
01:49:29,960 --> 01:49:32,960
OK, so I will go through this very quickly.

1115
01:49:33,120 --> 01:49:37,480
I'd like to thank the individuals and organizations

1116
01:50:00,000 --> 01:50:11,060
Specifically on the the Sierra Club comments, because I think they have some very specific things, suggestions as well as questions they'd like to answer.

1117
01:50:12,140 --> 01:50:27,220
So their initial comments that they felt should be expanded was information, breaking down on planning design for the different kinds of things like hospital environmental review permitting so forth.

1118
01:50:27,220 --> 01:50:30,980
environmental cost for mitigation and the cost for monitoring.

1119
01:50:32,280 --> 01:50:38,700
Construction breaking out the different costs and probably probably the,

1120
01:50:39,500 --> 01:50:40,980
how do I say,

1121
01:50:44,150 --> 01:50:47,270
the, the level of risk, like for example,

1122
01:50:49,150 --> 01:50:50,330
connecting to the grid.

1123
01:50:50,410 --> 01:50:54,350
I think that that is something we've had bad experiences with PG,

1124
01:50:54,350 --> 01:51:04,710
If you can ask us have other agencies that don't have relocation, ability, even when cities have relocation ability, it's tough to get them to perform.

1125
01:51:05,950 --> 01:51:18,310
So I think we may have to pay more than we might expect for the real providing electrical service, just if we want to buy certainty.

1126
01:51:18,310 --> 01:51:27,330
So I think that's something we need to take a look at because and also there could be a delay to the project if we don't have the service in time.

1127
01:51:28,830 --> 01:51:34,430
So, so you can read the rest of that. I just wanted to highlight those particular ones.

1128
01:51:34,430 --> 01:51:48,990
And I also think that what the Sierra Club is asking for is detailed information that really helps the board and the community make decisions,

1129
01:51:53,750 --> 01:51:53,750
right?

1130
01:51:53,750 --> 01:51:57,170
to really figure out where are all the pieces and, you know,

1131
01:51:57,270 --> 01:52:05,610
as professional engineers, you know, staff's obligation is to be providing

1132
01:52:05,610 --> 01:52:10,750
factual information, you know, not criticizing the project, not being an advocate for the project,

1133
01:52:11,050 --> 01:52:12,750
but, you know, just providing that information.

1134
01:52:13,790 --> 01:52:21,250
And regarding to expenditures to date, I think this year I'd love to ask some

1135
01:52:21,250 --> 01:52:27,810
questions that they would like to have answered, and I guess I will just, I'll just say $80 million.

1136
01:52:28,130 --> 01:52:32,630
You used to be able to deliver a big project and now it doesn't even get us through the planning

1137
01:52:32,630 --> 01:52:42,310
phase. So it makes me feel old, but it makes me feel really old. And one other thing, and this isn't

1138
01:52:42,310 --> 01:52:48,550
specifically related to the cost of the project, but I'd like to know when we'll be able to make

1139
01:52:48,550 --> 01:53:02,960
determination regarding the, how the project will affect flooding risks. And we had a

1140
01:53:02,960 --> 01:53:08,020
rather spirited discussion recently with a couple of board members with one board member

1141
01:53:08,020 --> 01:53:12,240
saying we wouldn't have flooding in the potato area if this project was built in another

1142
01:53:12,240 --> 01:53:18,700
saying it would have no influence at all. And I think the answer obviously is somewhere in the middle.

1143
01:53:18,700 --> 01:53:27,740
There would be some benefit, just like there is with Anderson dam of having a dam in place.

1144
01:53:27,920 --> 01:53:37,660
But I do think that it's important to have a technical analysis, so the board has a good understanding of what is that incidental benefit.

1145
01:53:38,100 --> 01:53:41,620
Because it does factor into our decision-making process. I'm sure.

1146
01:53:41,620 --> 01:54:04,620
And so it's good for all board members to have the correct answer to that question so that we're not speculating and I recognize that it can be very difficult to come to a precise number because some of it is dependent on how the dam is operated, but I think we can talk about ranges right and just put it in context.

1147
01:54:04,620 --> 01:54:17,700
So that we understand, yes, there's a level of uncertainty, but we're not going to achieve, you know, 99% flood protection from an incidental benefit, but it's not nothing either.

1148
01:54:18,640 --> 01:54:29,120
So those are my comments and you may not be able to answer them today, but I hope that we will get answers to them. So thank you.

1149
01:54:29,120 --> 01:54:30,420
Thank

1150
01:54:33,460 --> 01:54:37,440
you. Thank you. Thank you. Thank you chair and thank you.

1151
01:55:00,000 --> 01:55:08,720
I think it's making sure that the full board gets a reviewed version that tried to anticipate some of the questions.

1152
01:55:10,460 --> 01:55:11,560
So in that regard,

1153
01:55:13,640 --> 01:55:21,340
that I agree with Director Keegan's comment related to Sierra Club's comment letter.

1154
01:55:21,340 --> 01:55:28,940
First of all, I do want to thank Herzegare Club that you submitted your detailed comment

1155
01:55:28,940 --> 01:55:35,100
letter to us several days before today's meeting, which gave us some time to read the

1156
01:55:35,100 --> 01:55:35,460
letter.

1157
01:55:38,420 --> 01:55:39,860
That's really helpful.

1158
01:55:41,920 --> 01:55:49,340
There's one thing I want to point out at the beginning is that the letter indicated that

1159
01:55:49,340 --> 01:55:58,900
disappointing that there's no new information and the whole thought process for the board to get

1160
01:55:58,900 --> 01:56:09,740
into this individual areas that's related to this project is to really get to the detailed level

1161
01:56:09,740 --> 01:56:18,040
for that particular area. So, for example, last board meeting, we delving to the benefit of the project

1162
01:56:18,040 --> 01:56:26,080
And then today the committee is reviewing the cost aspect and finance aspect of the project.

1163
01:56:28,100 --> 01:56:41,860
Having said that I do think this process is working that because it's generating many detail questions from the Sierra Club, which will help us in understanding what is your question.

1164
01:56:41,860 --> 01:56:49,880
and so that it's everything is transparent and then we'd like to put all the information on

1165
01:56:49,880 --> 01:56:58,260
table and because the board will rely on this information and your input to this information

1166
01:56:58,260 --> 01:57:06,040
to help us reach a decision. And so I think very kind of I hope this process as designed

1167
01:57:06,040 --> 01:57:18,360
is working. And the detail questions from Sierra Club, my suggestion is that when this item

1168
01:57:18,360 --> 01:57:25,200
is ready to go to the board, I know it's planned for June and my suggestion may as a more

1169
01:57:25,200 --> 01:57:27,840
work to your packet.

1170
01:57:30,140 --> 01:57:37,000
If we, I think we should include this public comment in the agenda

1171
01:57:37,000 --> 01:57:48,560
packet, that's planned for the board briefing and also that answers as we can as of

1172
01:57:48,560 --> 01:57:56,240
to these questions, particularly, that's coming from Sierra Club.

1173
01:57:56,980 --> 01:58:00,180
So that would be my suggestion.

1174
01:58:01,320 --> 01:58:07,900
I do have one disagreement with Sierra Club to

1175
01:58:07,900 --> 01:58:16,920
the cost of dollar per acre fee to water supply in this presentation.

1176
01:58:16,920 --> 01:58:32,160
I personally, I don't feel that that's this cost project cost presentation. I feel that's more of a

1177
01:58:32,160 --> 01:58:39,880
water supply master planning presentation because there needs to be looked at in that regard in

1178
01:58:39,880 --> 01:58:49,760
a range of projects. Each project is different that simply look at total project cost at this point,

1179
01:58:49,760 --> 01:58:56,660
divided by the number of acre feet of water. I just think it's first of all, it's isolated

1180
01:58:56,660 --> 01:59:10,560
it. And secondly, it can lead to many conclusions that's not based on looking at the

1181
01:59:10,560 --> 01:59:18,600
complete picture. So my suggestion is that include that. And I know that a lot of supply

1182
01:59:18,600 --> 01:59:24,660
Master of Planning, have that as a Caliburial Presentation, as always.

1183
01:59:25,060 --> 01:59:27,980
And as we move forward on the Master of Planning,

1184
01:59:28,780 --> 01:59:33,160
that number will be more meaningful, because they're more and more

1185
01:59:33,160 --> 01:59:38,960
aspect to consider as part of the overall acre-feet of water that's received.

1186
01:59:39,860 --> 01:59:43,560
So that's my suggestion for this.

1187
02:00:00,000 --> 02:00:09,400
I'm adding more work to your package for the board. It's a question that's generated from the board.

1188
02:00:10,140 --> 02:00:26,840
When we talked about the project benefit and Dr. Keegan earlier mentioned about the incidental float protection benefit to the power of our river.

1189
02:00:26,840 --> 02:00:37,060
And so, if we probably, to do have a more concrete,

1190
02:00:38,960 --> 02:00:45,560
as you may need to do some analysis to get to that point,

1191
02:00:45,920 --> 02:00:48,020
but then for the board meeting,

1192
02:00:49,580 --> 02:00:54,840
maybe a list of questions that's raised by board members,

1193
02:00:54,840 --> 02:01:05,640
So that we don't lose those things and some can be answered now, some can be answered in the future.

1194
02:01:06,700 --> 02:01:24,220
But the main point that this process that the board asked us to do related to the particular reservoir is because it's such a large project complex project and a huge investment that

1195
02:01:27,860 --> 02:01:34,880
every useful information and data that will help the board to make decisions that make sure

1196
02:01:34,880 --> 02:01:41,120
that we provide that in a transparent manner and the public will have that information and so

1197
02:01:41,120 --> 02:01:47,640
they can profile feedback. So that's my feedback. Thank you folks bear with me because we got a major

1198
02:01:47,640 --> 02:01:51,860
meeting come up here right now we're really running late. So here's the deal we got the letters from

1199
02:01:51,860 --> 02:01:53,280
Thank you so much, Irvin, Sierra Club.

1200
02:01:53,540 --> 02:01:55,920
Got Jim Curl here, Dr. Young.

1201
02:01:55,920 --> 02:01:57,180
I'd be glad to let you speak.

1202
02:01:57,560 --> 02:02:00,000
If we can, folks, the staff has this information.

1203
02:02:00,320 --> 02:02:02,620
They will enter the year of question in your attendance.

1204
02:02:03,180 --> 02:02:03,900
So first of all,

1205
02:02:04,220 --> 02:02:04,800
Scott, are you there?

1206
02:02:04,900 --> 02:02:06,660
Do you would like to elaborate at all?

1207
02:02:09,230 --> 02:02:09,450
Hi.

1208
02:02:10,230 --> 02:02:12,270
I will skip elaborating on that.

1209
02:02:12,330 --> 02:02:17,530
I really think the directors for taking our comment letter

1210
02:02:17,530 --> 02:02:21,710
in seriously and I'm looking forward to responding to that.

1211
02:02:21,710 --> 02:02:28,550
But I wanted to thank Mr. Cole for the analysis he submitted around the cost for acre-foot for

1212
02:02:28,550 --> 02:02:32,510
potable reuse versus cost for acre-foot third-bit take-o.

1213
02:02:32,890 --> 02:02:38,170
His analysis suggests the need for an in-depth comparison of the Pacheco Dam project versus

1214
02:02:38,170 --> 02:02:40,790
focusing on potable wastewater reuse.

1215
02:02:41,570 --> 02:02:47,300
These are the two most expensive future projects in the CIP and passed analysis for the

1216
02:02:47,300 --> 02:02:53,680
40 water supply master plan indicated that we do not need both to meet future water demands.

1217
02:02:54,360 --> 02:02:59,640
It seems important for the 2050 water supply master plan update process to compare the

1218
02:02:59,640 --> 02:03:04,700
different water supply options that can address drought, water shortage scenarios.

1219
02:03:05,980 --> 02:03:10,900
Monetary cost and water supply benefits are obviously important variables to compare, but

1220
02:03:10,900 --> 02:03:16,560
analysis should also assess other cost and benefits such as environmental impacts, environmental

1221
02:03:16,560 --> 02:03:24,060
benefits water rate impacts risk of construction cost escalation and public perception.

1222
02:03:26,340 --> 02:03:31,120
So yeah, I just I hope there's the water supply master plan process update will

1223
02:03:32,640 --> 02:03:38,860
consider this input. Thank you. Thank you. We have your letter and your comments or staff.

1224
02:03:40,440 --> 02:03:44,380
Let me see you get Mr. Kerl. Go ahead, please. If you don't mind quickly go ahead,

1225
02:03:44,380 --> 02:03:45,980
later has got to be submitted.

1226
02:03:49,730 --> 02:03:51,490
Again, my name is Jim Cool.

1227
02:03:53,950 --> 02:03:56,230
An economic analysis has been

1228
02:03:56,230 --> 02:04:04,570
performed comparing the $2.7 billion per Chaco reservoir expansion project to Orange County's

1229
02:04:04,570 --> 02:04:13,110
wastewater recycling facility. The analysis determined that the cost of converting wastewater

1230
02:04:13,110 --> 02:04:23,400
to portable water would be 30% less than the cost of storing water at the

1231
02:04:23,400 --> 02:04:24,840
Chaco reservoir.

1232
02:04:28,340 --> 02:04:31,980
I want you to remember that 30% less.

1233
02:04:34,110 --> 02:04:34,610
With more

1234
02:04:34,610 --> 02:04:39,430
sugar droughts caused by climate change, the advantage of using waste water

1235
02:04:39,430 --> 02:04:48,570
recycling aggressively in the water supply planning is enormous. Recycling water

1236
02:04:48,570 --> 02:04:57,290
would be a more cost-effective alternative to Pacheco and provide water supply resiliency.

1237
02:05:00,000 --> 02:05:12,480
It could be terminated an portion of the funding employed to expand wastewater to portable water recycling, plus make water more affordable.

1238
02:05:13,640 --> 02:05:26,940
Pocheco is the primary cost driver for a 12-times increase in wholesale water rates for 1.6 million residents in North County.

1239
02:05:29,140 --> 02:05:42,000
Pocheco's $29,000 per acre for storage capacity is 5.7 times more costly than expanding the carols.

1240
02:05:43,890 --> 02:05:51,890
The main value of Pachagol from what I can determine appears to be reducing reservoir algae

1241
02:05:51,890 --> 02:05:52,570
blooms.

1242
02:05:55,120 --> 02:06:04,360
It's not combating droughts. Pachagol ship has left the dock. But it's not too late to reverse

1243
02:06:04,360 --> 02:06:13,600
the direction. And achieve efficient effective water supply resiliency in a sustainable manner.

1244
02:06:13,600 --> 02:06:23,620
In developing the 2050 water supply plan, it is recommended one before more funding and time

1245
02:06:23,620 --> 02:06:31,100
or committed to the Chaco conduct a rigorous, sloping comparison analysis between the Chaco

1246
02:06:31,100 --> 02:06:35,480
experiment, expansion, and waste water recycling

1247
02:06:35,480 --> 02:06:38,580
gold in Greece.

1248
02:06:39,260 --> 02:06:42,100
Published the results for review.

1249
02:06:43,440 --> 02:06:46,780
If waste water expansion is superior,

1250
02:06:47,620 --> 02:06:50,860
incorporate this strategy into the master plan,

1251
02:06:52,840 --> 02:06:56,080
this is comments have been given to the board and others.

1252
02:06:57,820 --> 02:07:01,940
And basically, they detail the justification

1253
02:07:01,940 --> 02:07:03,700
for this position.

1254
02:07:04,520 --> 02:07:06,120
Jim, if you don't mind, summarize, please.

1255
02:07:06,400 --> 02:07:06,700
Okay.

1256
02:07:07,440 --> 02:07:08,980
I have decal copies.

1257
02:07:09,440 --> 02:07:10,100
Did you have it here?

1258
02:07:10,240 --> 02:07:11,040
I've been meeting hands.

1259
02:07:11,120 --> 02:07:11,940
We haven't here, sir.

1260
02:07:11,960 --> 02:07:12,520
You'll be submitted.

1261
02:07:12,840 --> 02:07:13,960
I thank you for your time.

1262
02:07:14,140 --> 02:07:14,440
Thank you.

1263
02:07:14,760 --> 02:07:14,980
Please.

1264
02:07:17,480 --> 02:07:18,160
Microphone please.

1265
02:07:18,300 --> 02:07:18,980
We've got to move on.

1266
02:07:19,260 --> 02:07:20,490
We're running away late folks.

1267
02:07:21,420 --> 02:07:22,640
But your information is here.

1268
02:07:22,780 --> 02:07:23,440
We'll be submitted.

1269
02:07:24,560 --> 02:07:24,740
Okay.

1270
02:07:24,960 --> 02:07:27,180
Well, in the interest of time,

1271
02:07:27,820 --> 02:07:29,140
I'd just like to reiterate.

1272
02:07:29,700 --> 02:07:30,920
Mr. Gross comments.

1273
02:07:33,020 --> 02:07:39,020
The current plan of Chaco is basically one that we've seen for the past 100 years.

1274
02:07:39,780 --> 02:07:45,980
You create a reservoir, you fill it up with water from bite-draining rivers and put it in the reservoir.

1275
02:07:47,320 --> 02:07:49,940
That is a non-sustainable ecologically.

1276
02:07:50,220 --> 02:07:51,800
It's a non-sustainable approach.

1277
02:07:52,320 --> 02:07:57,680
What we have to do is move aggressively towards water reuse.

1278
02:07:57,680 --> 02:08:05,860
basically wastewater purification, storm water capture. We have to use the water we've got.

1279
02:08:06,160 --> 02:08:11,980
We can't keep draining the rivers, have filled up yet more reservoirs, which is the plan here.

1280
02:08:12,820 --> 02:08:16,980
So I just like to reiterate what he's saying, and I know everything is just a time

1281
02:08:16,980 --> 02:08:24,700
that's got it there. Thank you, Dr. Young. I just sent chair for the chair. I know where we're working.

1282
02:08:25,100 --> 02:08:29,180
Yeah, wait wait wait wait wait wait wait wait. I just want real quick that I appreciate hearing

1283
02:08:29,180 --> 02:08:34,960
our the public comment but then the comment sounded to me that this is the only project we're

1284
02:08:34,960 --> 02:08:40,880
working on. I would encourage both of you to look at all with the past the the already completed

1285
02:08:40,880 --> 02:08:45,900
study and then the progress that's going on on the water supply and master plan. Put your

1286
02:08:45,900 --> 02:08:52,400
reservoir is the only one thing that's being evaluated on a lot of things, which includes a hundred

1287
02:08:52,400 --> 02:08:57,660
purify while they recycle while they're many things. So, so the best way to handle that is

1288
02:08:57,660 --> 02:09:02,940
answer to the questions, provide the education, and we'll be fine. So with that, Ryan, thank you so

1289
02:09:02,940 --> 02:09:15,880
much. Anybody else up there? Uh, through the chair there is one online hand raised, are there

1290
02:09:15,880 --> 02:09:26,780
water or existing water because if the the the the considerations whether the whether the water

1291
02:09:26,780 --> 02:09:32,380
is this anyway whether we know water or existing water that's a good question. Thank you.

1292
02:09:32,400 --> 02:09:33,340
Thank you.

1293
02:09:33,480 --> 02:09:34,260
It's going to forepoint.