CITY COUNCIL CLOSED SESSION AGENDA
PUBLIC COMMENT
CLOSED SESSION ITEMS

 ROLLCALL

CONSENT CALENDAR
CLOSED SESSION REPORT
BUSINESS ITEMS
ITEM #4
ITEM #5
REQUEST FOR FUTURE AGENDA ITEMS
ADJOURNMENT
We have a quorum. 00:02:39
Yes, great. Thank you. 00:02:41
We will now hear public comments. Zoom participants, please use the Raise Your Hand feature so we can call on you. 00:02:43
Comments are limited to 3 minutes. Madam Clerk, does anyone have a public comment? There are no public comments. OK, very good. 00:02:49
Mr. Agency Attorney, could you please read the closed session item into the record? Thank you. Chair Hernandez. There's one item 00:02:57
on closed session today. It is conference with legal Counsel Regarding anticipated litigation pursuant to Government Code Section 00:03:02
54956.9, subdivision B2. 00:03:08
Based upon existing facts and circumstances, as I understand them, significant exposure to litigation exists. 00:03:14
Based upon a three party agreement between the City of Portland and the City of Oxnard and the Colegas Municipal Water District 00:03:20
relating to water credits or pumping allocations and number of potential cases as well. 00:03:25
Thank you. 00:03:31
We are now recessed to closed session. The time is 4:02 PM. 00:03:33
Welcome to the Port Running Water Agency special meeting. It is now 402 PM. 00:03:41
Do we need to do another room? 00:03:46
4:41 PM. 00:43:24
Charitable. 00:43:26
And Madam Clerk, can you call the roll? 00:43:28
Alternate member LeBeau. 00:43:32
Present member Bashar, member McQueen Lashawn member Perez. 00:43:34
Vice Chair Debilly is absent, and Chair Hernandez here. 00:43:40
Do we have any public comments for the regular meeting? No public comments. 00:43:47
Can we get a motion to approve the agenda? 00:43:57
2nd. 00:44:03
All in favor. 00:44:09
All opposed carry None motion passes unanimously. 00:44:11
To be. 00:44:17
OK. So this brings us then to the consent you have no place in stations. 00:44:27
It's on calendar, the motion to approve and items 1-2 and three. 00:44:33
More advice and move to food items one through life no no, 1-2 and three. 00:44:40
Yeah. 00:44:47
2nd. 00:44:47
Well, you know. 00:44:54
I said no, for honor, no. 00:44:57
Is that OK? It looks like we are OK. All in favor? Aye. All opposed. Carry None. Motion passes unanimously. 00:44:59
And for the record chair fund, they skipped over the closed session report. There was no reportable action. Thank you very much. 00:45:08
All right. And we have no public hearings. 00:45:18
So we're now at item four and the business items. Item number four is the strategic planning workshop to two recommendations 00:45:24
considered directing staff to see whether the on call engineering services procurement process to support the execution of high 00:45:30
priority capital improvement. 00:45:37
We have a presentation on this item. 00:45:44
OK. 00:45:47
Stephanie, go ahead. 00:45:48
Yeah. Thank you, Chair. Good afternoon, Board. So, so we did have our first workshop last month. Today will be Workshop #2. 00:45:50
Some of the topics that will be covered water supply modeling, future opportunities and alternatives. 00:45:57
Findings and recommendations and then the implementation of an approach. 00:46:04
So I just have to go ahead and turn it over to Mr. Ryan Gallagher. No, they can't. Right. Thank you for having me again and. 00:46:09
Going through this process, I think it's been very productive. And so today will be our second workshop. Wrapping this up, are we 00:46:17
understand we might be able to view the PowerPoint or no? 00:46:22
My the Wi-Fi on my laptop is down. I'm going to see if I can access it from here. 00:46:29
I don't know. 00:46:35
If not, if you have in your packets, you can walk them together. OK, that's fine. 00:46:40
Yes, very good. All right, let's just. 00:46:45
Going to start again, so we're looking at, let's just skip this slide two. This is the strategic plan overview. 00:46:48
So as we heard from Dennis, this is the second workshop. The first workshop was just a month ago where we laid out the the 00:46:54
history. Why does PWA exist? What were the challenges that we're trying to be solved at the time? And what are the agreements that 00:47:00
were formed to create the GPA? What are the challenges? 00:47:06
Both on the legal side, operationally water supply that have been faced. 00:47:13
From the start of the organization to today and then what planning efforts have been conducted? 00:47:17
And really what we did is we identified some of those challenges to try to try to collect them into sort of pluck its areas of 00:47:22
focus that would need to be addressed with report. And so today we're going to focus in on some water supply modeling that was 00:47:28
done when you updated the efforts that we've done in 2015. 00:47:33
And then we'll look at some of these opportunities and really put everything together in a simple work plan that could be less 00:47:39
than 1/4. 00:47:42
So I'm going to skip slide three. That's just our intro to the water supply modeling. And if you look at the slide titled Water 00:47:46
Supply Model Updates and Analysis. 00:47:50
So as part of the 2019 facilities Master plan for PHWA was mainly focused on developing a CIP for the plant and looking at rehab 00:47:56
needs and operation needs. 00:48:00
It also included a component of water supply and really answering the question that looking at your current sources of imported 00:48:06
and groundwater, would there be challenges, what are the opportunities on modifying operation, what does that do to your overall 00:48:12
cost? And so we use utilize that model to look at five additional scenarios and these will be instructed in sort of bigger picture 00:48:18
of decision making. I think it helps make the final recommendations more clear and justifiable. 00:48:25
As far as what we updated, we took that model and updated the cost of water. Obviously since 2019 there's been changes in the cost 00:48:32
of water for imported and groundwater. 00:48:36
We looked at the allocation, made sure that for the GSP allocation for your groundwater that we were up to date on that ever 00:48:40
changing situation. But we mash it with your current understanding of that. And then we looked at your water quality as far as 00:48:46
what's coming into the plant, updated those numbers in the model and then finally looked at the the water demand bringing it in 00:48:53
line with your 2020 regional metric plan which you. 00:48:59
Until recently. 00:49:05
I should say. 00:49:10
OK. So slide five, that's the. 00:49:12
The first busy slide, I'll call it this is the dashboard from the water supply model. 00:49:15
And highlighted in red are really the boxes I want to point out. So this is the baseline and when we make those updates to the 00:49:22
assumptions what you can see in the first larger red rectangular box. 00:49:28
That is your groundwater supply and that's really the area where most concerned with. And when you look at the planning period, 00:49:35
there's the five different bars. 00:49:39
You can see that as you know, first five years you're fine and then the next, next five years you see a small deficit, but it's 00:49:44
marginal and then that that increases as it goes further and that's because you have to draw down on your allocation, you have 00:49:49
demand increasing. So that situation. 00:49:54
There is a challenge as you get into those later years. 00:50:00
And but I will say from 2019, these numbers are actually a little bit better. Your demand projections have gone down, which I 00:50:03
think are more realistic with. 00:50:07
What we're actually seeing. 00:50:12
Across the river agencies. 00:50:14
And then the dollar amount here, that's the smaller white box that's 128,000,000. 00:50:16
This isn't a number that you budget around. I point that out here because as we look at the other scenarios, you can see how that 00:50:20
impacts your overall cost to operate. 00:50:25
And so it's really meant to be used more for comparison than these budgeting because this is over a 25 year plan period. 00:50:30
So the next slide is going to be our scenario 2 which is water quality and So what we did within the model is just tweak 1 00:50:37
parameter. 00:50:40
And that is what is your target TBS? 00:50:44
And you remember from our first workshop we had presented? 00:50:46
OK. 00:50:52
Sorry there. 00:50:53
Those comparing. 00:50:56
Uh, so yeah, this is the water quality one. 00:50:58
If you remember from our workshop one, we looked at the water quality that HW puts out to its member agencies. We also compared it 00:51:01
with some neighboring agencies. 00:51:06
And yours is is a bit lower from the original model we're looking at though that's a good thing, right? We're delivering better 00:51:11
water quality to our customers, especially compared to our neighboring agencies. 00:51:15
And there's a price difference with that. And so when we modify that from 390 to 600, which is still a lower TDs that our users 00:51:20
agencies, it would be a higher water quality. You can see the cost impacts at 119,000,000 for that planning period. 00:51:29
That's a yeah, 10 million, almost $10 million in savings. So that gives you a flavor of what the impact is to lower slightly 00:51:38
modifying that water quality. 00:51:43
It's still achieving a high, high quality wine. 00:51:49
So for the. 00:51:52
The next slide. This is scenario three so. 00:51:54
We just again need one tweet to the baseline and for this tweet we looked at what would we in this scenario three track along is 00:51:57
well what does it look like when we make a capital investment and this situation capital investment would be optimizing. 00:52:05
So this would be a third stage RO. 00:52:13
Basically trying to get improved the recovery just from 80 percent, 85%. So that means there's going to be less crime and more 00:52:16
water for every, every drop coming in from the United that's your groundwater supply. And we make that tweak, we make that 00:52:20
investment. 00:52:25
You can see on the water supply it has about the same impact as your on your water supply in those future here. So it helps with 00:52:30
those future deficits almost equivalent to what it would be if we just tweak the water bowl. The cost savings though you can see 00:52:37
are not not quite as good, but keep in mind that's still say 5,000,000. 00:52:44
For just a, you know, $1.2 million investment. So you're getting that money back, you're helping address some of these longer term 00:52:52
water supply. 00:52:56
Issues, but maybe not to the same degree as just the shift of our growing. 00:52:59
I'll move to the next one, which is. 00:53:05
On that. 00:53:09
If you took. 00:53:11
I know it's tough when you're doing this model, but if you took. 00:53:12
Scenario three and all related. On scenario two, you can see even more significant savings, right? The combination of both, right 00:53:16
where you you're optimizing the plant plus lowering water quality. 00:53:22
Right. I love the way you think. That's scenario 5. 00:53:29
We didn't plan this, I promise. 00:53:34
That you just called me out. I'm not being prepared. No, no, no. 00:53:37
All scenarios isn't very clear that they're stacked, but. 00:53:43
So it's a great point and we just have one more scenario that we'll actually see that altogether. 00:53:47
The reason we kind of split it up is we wanted you want, we wanted to see how these impacts compared to each other. 00:53:52
Because the magnitude of impact is different between them and so just wanted to see them independently stacking better. Scenario 00:53:58
four is stable demand and for this one. 00:54:03
Look the last. 00:54:08
Five years, I'm not looking at this current, this current county because it's a little, it's a little bit odd with the rate that 00:54:10
we had. But if you look at the previous years, you've been pretty stable around 4000 acre per year plus or minus. 00:54:16
And So what we did for this scenario is we looked at it. What if the demands increases didn't happen as projected #1 measure plan? 00:54:22
What if they they stabilize? 00:54:27
And that's not a completely unrealistic scenario. You don't have a lot of large development in these areas. 00:54:32
You do have. 00:54:37
On on the regulation side, there are new laws being put in place that will continue to ratchet down on your per capita water use 00:54:40
within the house and so this is not completely unrealistic scenario. 00:54:47
Certainly based on going back to previous fertilizer major plants, we've never had the demand and that's not unusual but that you 00:54:55
see that a lot with agencies across some California but. 00:54:59
You just haven't seen it. 00:55:05
So if you look at that, you can see this has a very significant reduction going from 128,000,000, so to 104 and your water supply 00:55:08
now your deficit is pushed. 00:55:14
Basically back to your current contract with lesser contract, currently THW with water sales agreements low agreement, those are 00:55:19
all currently set to expire in 2036. 00:55:25
So with this alone, you're really pushing out that issue. 00:55:31
Would that concern, I should say, beyond that, that? 00:55:35
Contact tracing. 00:55:37
And then finally, as Richard led us to, we have scenario 5, this would be all scenario. So what happens if we start to stack these 00:55:39
together, we're looking at a 25% reduction, 100 and 2895 million. 00:55:46
This is the water quality, the recovery rate and the capital cost of vestment. And look at our water supply that's large 00:55:55
rectangular box. Our water supply shortfalls are pushed well towards the end of our plane beyond or 20/30/16. 00:56:02
And So what this shows us is that it would be prudent to invest. These are not significant capital investments. Making a small 00:56:10
tweak to our water quality will have a will help in addressing. 00:56:17
Making our water supply and cost effective. 00:56:23
And so we kind of see these things all together, it's a pretty significant. 00:56:26
Impacted your overall cost in a lot of science supply, which are two major focuses. 00:56:30
All right. 00:56:37
Any questions that have won this? Any questions? 00:56:38
All right. 00:56:45
So the next slide is the opportunities. So that's just a header slide. We'll go to the slide title opportunities to explore. 00:56:46
So I'm gonna go through a couple of more detailed slides. This is really a summary slide. We'll talk about opportunities to 00:56:55
explore what we saw as the kind of the biggest impact would be regional projects, would put these into sort of buckets, regional 00:57:00
projects. 00:57:05
And this could include United Extraction Barrier project which I will talk about in more detail. 00:57:10
Kayaks is looking at regional planning efforts across the county, looking to bring water supply and looking for partners. 00:57:15
And this, this one Oxnard Rash Salter won't go into detail, but opportunities to work with the city of Oxnard seeing if they have 00:57:21
the infrastructure. So there could be opportunities there. I'll talk in detail on the on the next slide on the United 1, but 00:57:27
really just pointing out that there are regional planning projects going on. 00:57:33
In the county would be. 00:57:39
Could be coordinated with HW that looks really beyond. That's one of the reasons so. 00:57:41
With what we're proposing now. 00:57:46
That brings us through that period and really we start looking at what happens actually. 00:57:48
He should be a water treatment plant. That category. These are opportunities that you could look at that would be in the future. 00:57:53
But it would be more focused on THW looking at your facility. So small scale diesel, I'm talking in detail about that one. 00:57:59
The excess water back to Oxnard recycled water Direct Clover reuse. 00:58:06
We don't need to talk a lot of detail about that, but what those go back to is just. 00:58:10
On the recycle waterfront, you saw the impact of lowering demand in your system allows you to utilize the majority of groundwater, 00:58:15
less imported water, which is expensive. 00:58:20
And so those are the examples of we'll talk in detail about those. I just wanted to hit one from each category. 00:58:26
And then the last one is funding. This is not something that has been. 00:58:31
I've seen in the last trying to think of the last project that got right. 00:58:36
Funding, that was. 00:58:40
She was very successful in getting grant funding as part of the original formation. 00:58:43
I haven't seen it pursued so much in recent. 00:58:49
Passed and this is really an area that given the type of work that you're doing. 00:58:52
Could be successful in some time. I'll give a couple examples. 00:58:56
Something new to the next slide. This is the United attraction barrier. 00:59:00
So this project is they're they're in the planning phase. It's probably realistically it could be 10. 00:59:04
They're really in early stages of doing some pilot testing, being a pilot well. 00:59:13
There's been some conversations. It would be an ideal time to start getting involved in those conversations when they're looking 00:59:19
to build. 00:59:21
Is a extraction barrier. 00:59:25
Facility near the point of view base that would help both address the sea water intrusion. 00:59:28
As well as provide a new source of water mains and both the goal but also the opportunities at 20,000 per feet to go building on 00:59:34
that. This is the item that we discussed on our trip to DC. 00:59:41
And we lobby for. Remember that. 00:59:49
RP 21 Regional Defense. 00:59:52
Project. 00:59:55
21 We went with the Board of Supervisors and. 00:59:56
4th. 01:00:02
Returns. 01:00:04
It's a very interesting project. It's. 01:00:06
It's not any longer term, regardless of how you participate in it. 01:00:08
I can't see how there would be an impact only because point of view takes water from your system. 01:00:12
And so if they're taking water, what that looks like to maintain this capacity, that would all have to be figured out, but there's 01:00:17
certainly opportunities. 01:00:21
Either to return water through that existing pipeline. It's 12 inches aged so that may not be a long term strategy, but. 01:00:25
Participating in some degree in society. 01:00:34
Could be an opportunity. You certainly have I don't believe given its timeline and its uncertainty. I mean there's there's a lot 01:00:36
of. 01:00:40
Funding and technical challenges that would have to be worked out. 01:00:44
And. 01:00:48
It's not something that should stop you in doing what we're proposing, because really what we're looking at is optimizing what you 01:00:49
have and really repairing we having something continues through the life of your current contracts. But this is certainly 01:00:53
something that should be engaged. 01:00:57
As a as a viable opportunity. 01:01:02
So I think we're getting into talking about what that might look like and what those costs could be. 01:01:06
Is part of this action plan. 01:01:13
The next slide which is the small scale we sell, this is from that bucket of projects that are described as the PWA centric or 01:01:17
focused. It was mainly at the monetary plan. 01:01:21
This was an interesting item. 01:01:26
That could be explored. 01:01:28
And this would be similar to the United project in that it is a longer term planning project. This would be something that. 01:01:30
These could be potentially viable. 01:01:37
At the end of the 21st 36 contract, if you're going to continue on this might be part of that portfolio. 01:01:39
I bring this up because of the similarities to Vandenberg Space Force Base. They are currently implemented design on this small 01:01:45
scale diesel use these boys. 01:01:50
And depending on how much supply, there would be a collection of these boonies. 01:01:55
And so it's interesting in the military. 01:01:58
Connection with that being the. 01:02:02
Air Force Space Force Base. 01:02:04
And. 01:02:06
Where they are in their stage and how that could potentially be used here, Victor County. 01:02:07
Would be sort of a repurposing of your current facility. It's a bit out there and there really shouldn't be anything other than 01:02:12
tracking. 01:02:16
Because you gotta wait and see what the viability of this program is. But they they are moving forward. There's plenty of time 01:02:20
you'll see. You know, unlikely in the next couple of years you'd see some numbers of what the cups of water is and how the 01:02:24
environmental process works, but. 01:02:29
It was an interesting question. 01:02:34
The next slide was the grant opportunities and this is certainly part of the high priority items which would be in the first 01:02:37
phase. 01:02:41
We're looking for grants. The projects that we talked about in the early stages that we've put in high priority are projects that 01:02:45
are going to reduce your cost of water or better utilize the supply sources you have. 01:02:50
Which fall into, for example, the MWD Local Research Program. 01:02:56
So there are opportunities similar to that you mentioned. I think the defense community infrastructure pile around. I think that's 01:03:02
some great hunting for that. Yeah. 01:03:06
Because the city, you know that Grant was just moved last week, so do at least have experience what it takes to go through that 01:03:11
process now and the basement very supportive earlier support base. 01:03:16
So definitely opportunities and these early stage projects. 01:03:23
What? What? 01:03:27
Usually what happens, and this was done when the pilot when the third stage RO was done there usually you do kind of a grant. 01:03:29
So it's a high level, just here's the project basically scan all the opportunities of grants and then you try to identify the best 01:03:37
opportunities and then what's tricky is you tie it then with. 01:03:42
The delivery, they all have different sort of schedules and differentiation for the application, so. 01:03:47
Looking at. 01:03:53
The high priority projects and then overlaying that with grant opportunities. 01:03:54
This should certainly be included in the first phase. Awesome. Great opportunities, really quick. 01:03:58
Just because I don't want to forget to say it later. 01:04:07
I think if some of these projects in particular like the plant optimization right that's it demonstratable basin benefit project 01:04:11
where. 01:04:15
And I'm going to say it in terms of. 01:04:20
When we start talking about next steps that I think we need to prioritize something like that, it might like say that you've got 01:04:22
the Sigma ground. 01:04:27
Round one funding down now Round two. 01:04:31
Funding for GMA constant update. 01:04:35
The GSP in order for any project to be approved. 01:04:38
Or that Sigma round one or Grant round two funding. It must be an included project in the GSP. 01:04:43
So to the extent that we have projects that would meet that criteria, we should focus on getting those. 01:04:49
Project ready. I know Ryan has a lot of experience and and that is he's helping my other agency and administering the grant money 01:04:56
that we received for it and and building the project. 01:05:02
And even more so. 01:05:08
I would say that. 01:05:12
In the current grant round one funding. 01:05:13
I believe, yeah, there may be some additional money left that was. 01:05:17
Awarded to folks today. 01:05:24
That may not be using at all. 01:05:26
At the end of that. So they may be looking for really quick projects. 01:05:28
That can get lumped in to to use X / 7,000,000 dollars given to both basins and I think I'll use my project as an example. 01:05:33
We got early on the estimates and I think it was what over $5 million for a pipeline project. 01:05:40
We just got back the updated estimates with real cost and votes in it. 01:05:47
Almost 70, not, excuse me, 30% less than that. That's a lot of money left on the table. 01:05:54
So that's not a knock on Ryan. The cost changes have changed a lot since we did initial stuff when we put out the original 01:06:00
engineers estimate to go after it. But there's going to be money left that's going down. 01:06:05
I was gonna say that. 01:06:10
No, that's not it. You just promoted. Yeah, well, no. You're original engineers. Estimates sucked. 01:06:13
Yeah, sorry. 01:06:19
Classified. 01:06:21
I think there may be some some really quick opportunity for us and I want to make. 01:06:23
Sustainable groundwater management. So they gave they it was really odd process. 01:06:29
I don't know the Round 2 will be the same, but basically the state said Hey, you guys at the local level decide what projects. 01:06:35
You want to fund with this $7,000,000 per basin. 01:06:43
And it got done in a hurry. Quicker than you've ever seen any application process go through and and an odd approval, but. 01:06:46
There there may be some additional money and and rhymes very familiar with with that, so I just thought I'd mention when we start 01:06:55
to build into the staff recommendation at the end. Also a lot of these projects need to have. 01:07:00
New York construction running, if not construction that needs to be updated next. 01:07:06
And the third stage, RII agree it would be a great project because you're. 01:07:11
Better utilizing the groundwater supply and essentially creating any. 01:07:16
And they supply like. 01:07:20
To your point, the player design report is now. 01:07:22
Five years old, maybe more. And there was some piloting my there's some work that needs to be done, minor work that needs to be 01:07:27
done to basically support that. So those grant applications. 01:07:32
You're basically making a commitment to something, and you need to be able to define it, support it, and then later. 01:07:38
Measure and demonstrate it. And so we want to be confident that we can hit what we're promising. 01:07:44
So that was the great opportunities. 01:07:52
Next slide. 01:07:57
Which is our next steps part, So we'll move to. 01:07:59
This slide. Perfect. OK, so this is going to wrap things up here, so as part of Workshop one. 01:08:04
We started to. 01:08:10
Consolidate a lot of the issues or concerns or opportunities that we're seeing put them in these four areas. So we have the legal 01:08:11
institutional and the financial that was a big part of the. 01:08:16
Workshop one, we also touched on a workshop one, the asset management, and during workshop one we really referred to it about to 01:08:21
the CIP from the 2019. 01:08:26
Facilities master plan, but really that's asset management. That master plan is focused on rehab and rehabilitation is getting 01:08:32
visibility to. 01:08:36
Make sure that it's still running in these future years. And I put some information in here that I thought would be helpful. So 01:08:41
these are just a couple of. 01:08:45
Industry standard. So basically you're looking at for what should you be budgeting. 01:08:50
To maintain your facilities and systems so. 01:08:54
These recommendations are anywhere between one and 4% and that's replacing us. 01:08:57
So just to put that in context, I pulled up your installation process, just the facility which was 25 million marks, that's the 01:09:01
facility in the pipeline. 01:09:04
That was installation process from 1996, so arguably much higher down. 01:09:08
But if you just look at that, you're looking at somewhere between $250 million a year to maintain your systems and so that's. 01:09:12
Danger. 01:09:22
I I don't have the direct numbers of what's actually been spent. 01:09:24
I think that has fallen a little bit short. Obviously that's a large range. 01:09:27
And and rightly so, the facility was newer. 01:09:32
These aren't things you're really thinking about and now the facilities you know 25 plus years starting to plan for those would be 01:09:35
prudent and would avoid sort of shocks in the system if things if you're having failures which. 01:09:41
So the lot last bullet there, the long term planning, these are the four areas that that are that the focus areas and use that 01:09:50
then to go to the next slide. 01:09:54
This is essentially the work plan. This is what staff can utilize for the next few years moving through. 01:09:58
The different areas that need to be addressed. 01:10:06
And they encapsulate both. 01:10:09
Agreements. 01:10:12
Getting issues resolved. Their tasks that fall under the responsibility of staff there. Some of them are just small maintenance 01:10:13
projects, some are. 01:10:17
Regional coordination somewhere CP So. 01:10:22
There's the four columns there, and then you see the high, medium and low optimal left. So really the. 01:10:25
The priority items are there on the top and that's high. 01:10:30
And the reason that those are in the high category are we try to the highest impact items. These are the items that we're saving 01:10:34
money. 01:10:37
Operationally, you know whether that's energy cost of water. 01:10:42
And then these are other items that sort of build into future phases. So we try to move all those into the high phase, not to say 01:10:46
the medium, low aren't as important, but the impact from those. 01:10:51
Will not be as as. 01:10:56
The strongest, and I'll just walk through the high ones. I want you to go through all of the high and the legal institution, the 01:10:59
operational audit. We we learned at the last workshop that contractually we need to be doing this. 01:11:04
We missed our cycle. We need to get that and that will actually feed into the CIP. New items will come up that gets kind of built 01:11:10
into that CIP because now remember the CIP is. 01:11:15
He's aged a bit as well it's been. 01:11:21
Or you just use that was done third party. 01:11:23
Agreement, Landis. Agreement those are. 01:11:26
Minor pieces that need to be addressed. Some of those are already in action. 01:11:28
Under the financial fluoride system. 01:11:31
If we can remove the fluoride system, there is operational savings. There's safety savings. 40 Silicic acid is a very dangerous 01:11:34
chemical. 01:11:38
And there's there's justification for not providing it which. 01:11:42
Laid out the master plan, Could you talk through? We can find a way forward, but. 01:11:47
That would save money instantly, probably make your operator happy. 01:11:52
The low flow pumping, this helps us to achieve a higher utilization of groundwater because of the way that the facility operations 01:11:56
are, the demand are. This is a capital project that saves money. 01:12:01
Lower pressure in the system, same thing and the grant opportunities, we want to do that early part of the high priority so that 01:12:07
we can start to. 01:12:10
Position or projects to be able to to get those great values in the next phase and you see third stage R just below there. 01:12:14
On the asset management, these are really the high priority ones that tick rehab and then replacement. 01:12:21
And then really refreshing that five year budget. 01:12:26
All those other minor there are smaller CIP's that that should be incorporated but I I didn't want to they're fairly small 01:12:29
probably quality or your operational budget but that really that CIP starting to move through that. 01:12:36
And then finally the long term planning getting in having the conversations with our regional partners. 01:12:43
To make sure that we're in the conversation and so that. 01:12:48
As these projects start to take shape, if they do move forward that we are positioned to make sure that we get the benefit that we 01:12:52
need and we at least have an option as we near 2036 because. 01:12:58
Really in the next five to seven years you might start, you're going to start thinking about what are we going to do in 2036? 01:13:05
Because no matter what direction you're going, you're going to need several years to sort of. 01:13:10
Update the agreements. 01:13:16
So it seems like a long time away. 01:13:18
Compass. 01:13:21
Right. 01:13:22
I'm going to the next slide. This is implementation. Just want to highlight this is really a you saw from the previous slide. It's 01:13:24
really a mix of. 01:13:27
Resources that are needed. You need to have a point person that's your your, as I understand it the city of Portland and that's 01:13:32
that's Dennis Water GM. But really you're going to need some resources to help implement some of the more technical projects. 01:13:39
You if you don't have already, you want some. I'm assuming you have mom called contractors to go through some of the smaller 01:13:46
projects. So there's you need these agreements in place these resources in place and then you need your stakeholders indication. 01:13:52
That's Channel Islands. It's the Navy representative and that's your legal. 01:13:57
Because some of these tasks. 01:14:03
Purely. 01:14:05
Dennis Bucket working with Legal Some of them are going to be Dennis working with the Navy representative. 01:14:06
You know, working with all partners, so. 01:14:12
It's the implementation is gonna you need to have a whole person. You need to have someone leading the charge. 01:14:14
And this work plan provide provides at least a starting framework that could. 01:14:20
We have posted modify this report but it's a good starting point. 01:14:24
And then finally. 01:14:30
The next step so the work plan. 01:14:32
Has the high priority items listed there. 01:14:35
He's going to be, as we've gone from these two workshops, what we have found. 01:14:38
And your discussions and evaluation, working with staff as the areas of focus for the high priority. 01:14:43
And really the next step is to to move towards those and to make sure you have your team in place to execute. 01:14:49
So. 01:14:55
Your sacrifice, that's why we could have structured that because you say we assume we have uncle, we don't. And so one of the 01:14:56
things we mentioned the board before is you know this agency depending upon the city for delivery projects and focus 01:15:02
administration I've shared in the past and where the city is trying to build that capacity. 01:15:08
Council members have heard that we share that with others, so that's what we set it up. So the recommendation is to really direct 01:15:14
staff to get these on call agreements in place. 01:15:18
Get some resources in place and then make sure that we pay your concurrence. 01:15:23
It's time to invest in. It's really kind of step up our investment. 01:15:26
I'm in the water is kind of been. 01:15:30
Sitting back using these facilities for a long time without making those investments, there was some question about the agency and 01:15:33
where it was and. 01:15:37
That was part of the desire I'm thinking, the impetus for bringing the strategic planning together. I think it's really worked out 01:15:40
great. It's showing that. 01:15:43
By making these investments, we can lower costs over the long term, which is what you want to build the city. And if you know if 01:15:47
you could have a facility, you have to invest in it this time. 01:15:52
To change out memory just time and do other things. It's time to really invest here, so. 01:15:56
The Board recognizes that and you also mentioned A5 year budget. I think in the past it's really been a five year plan. 01:16:03
It hasn't been budgeted per se. Way we're set up, it's really passed through. We've done very little capital. When we do, capital 01:16:08
really comes through in that end of the year true up. So I think over the next year, Dennis coming on board, he's definitely 01:16:13
interested in like. 01:16:17
Put together more five year budget so that the other agencies. 01:16:22
Depended upon all the agencies depend upon this water agency know what to activate on an annual basis in other countries. 01:16:26
Pass. 01:16:35
That's what we see that evolution really coming out over this next year so. 01:16:36
Second questions for Ryan or? 01:16:42
I guess maybe maybe a comment. I really appreciate what you guys put together here and I'd like to see us. 01:16:47
As you said, kind of formalize it, right? We've got a green, but we've also kind of sat here and talked but something that you 01:16:54
know. 01:16:57
During disappears and and Misty and and and you guys are all still sitting here, someone who comes on and said what the hell. 01:17:02
The ordinance in this process adopted. 01:17:10
These things, that's why we're moving forward with it and you know, just for. 01:17:12
Yeah, consistency moving forward for other board members and people coming on board. 01:17:16
On Zombie, that'd be one comment, whether that's going to be the resolution or however you guys want to set that up. 01:17:21
You know, I I think it's yeah, I agree with the high, high priority and the long term planning. I know it'll come back before I 01:17:31
just for some reason I want to share these thoughts really quickly. 01:17:35
When we talk about, you know, I think one thing that's important for us to to consider is how we want to engage. 01:17:40
Future regional projects. 01:17:49
And. 01:17:51
I think Ryan referenced it. And so I'm not saying anytime you try and do long term modeling what your water supplies, it's really 01:17:53
tough to to define what that is. 01:17:57
And I recognize that. 01:18:02
And some of the assumptions built in here, right, are taking that ramp down that's going to occur that the GMA it's the only thing 01:18:04
that we really know is out there today, right the the groundwater sustainability plan said. 01:18:10
This is going to happen. 01:18:15
However, a lot of those regional projects say you're not going to be here, you're going to be up here. 01:18:17
And for us keeping that in mind and how we focus on the engagement of those and getting a long winded way of getting around to my 01:18:23
point of. 01:18:27
There's two different ways of this, 2-3 different ways that can happen. 01:18:32
1 can be that you kind of sit back and let the regional approach and what what folks have said will come forward and believe to be 01:18:37
true, whether it's an adjudication process or whatever. Somebody's got to pay for these projects, right? 01:18:43
And so if you want incremental benefits, what do I mean by incremental benefit, right, if you sit back and you play a groundwater? 01:18:49
Ground what are they called groundwater sustainability fee is what the they've been talking about or a a groundwater replenishment 01:18:57
fee. 01:19:00
Gmail. 01:19:05
On every acre foot of water and you would get indirect benefit, right. So how do you, how do you describe that right you say? 01:19:07
Well, there's going to be a new thousand acre feet of water delivered and your. 01:19:13
25% of it, so you would get. 01:19:19
258 your feet out of that, we're paying groundwater replenishment. 01:19:22
Is that enough water or do you want to directly participate in these projects with capital and not get incremental benefit, but 01:19:28
pay capital and get defined benefit that's not incremental and? 01:19:34
I think everybody's evaluating it that way and I think our team would be wise to begin looking at that and saying. 01:19:40
As we evaluate it, are we OK with just having incremental cost portions of it? Do we need to directly engage in any of these 01:19:47
projects because you can put a great deal of effort into direct engagement and development. Do you really need it? Or 01:19:53
alternatively, if you don't put enough into it, you really needed it, right, then you come up short and. 01:19:59
There are kind of things that are out there today that. 01:20:05
I can see us participating in that could create water tomorrow if we wanted it, but I don't think we're in that position today, 01:20:09
but positioning ourselves with those things and and exchange programs, I think if we think it's necessary or something we got to 01:20:14
keep it the forefront and and where we're at. 01:20:20
This is complete representation. Do you have anything else? Thank you. This is really well done. 01:20:36
I really like your approach on this, but thank you so much for the good work. 01:20:43
Thank you for the opportunity. 01:20:48
OK, we're back. Do we have a? 01:20:52
We have a recommendation to direct staff to proceed with an on call engineering services for payment process to support the 01:20:55
execution of high priority capital improvement. 01:21:00
Was there anything else that we were going to? 01:21:05
Want to recommend? 01:21:09
Success. 01:21:11
Move staff recommendation. 01:21:13
Second, Second all in favor. All opposed carry None. Motion passes unanimously. 01:21:16
Thank you. 01:21:23
Thanks. 01:21:25
All right. 01:21:28
Yeah, yeah, the graphics helped a lot. 01:21:30
Thank you so much. 01:21:36
OK. We're going to move on to item 5, which is the Gates Way operating budget and fiscal year 20/23/24. 01:21:38
This is the recommendation to review this Office proposed FY23 24H WA operating budget and the proposed fixed and variable water 01:21:47
rate components. 01:21:51
Staff may proceed with the presentation. 01:21:59
Hi, my name is Ashley, the county manager over the finance department. 01:22:03
This is my first time presenting and being here before you today. 01:22:07
Thank you. 01:22:13
I knew to THW a so. 01:22:15
I apologize if some of my explanations here with the budget little two elementary for you all, but this was really neat getting to 01:22:19
learn the budget, how the process works. 01:22:24
Repeat WA I've worked on the city budget before. This is my first time working with HWA so. 01:22:29
Again, forgive me if I repeat myself or I'm a little too. 01:22:35
Umm. 01:22:38
High level or not the right amount of detail only get better by pitchfork with you all little more on this budget moving forward. 01:22:39
Thank you. 01:22:43
Thank you, Georgian. 01:22:49
So we can move on to the first slide, please. 01:22:51
So Page TWA operates as a utility enterprise. It does have its own fund. 01:22:58
Totally separate from the city is its own separate entity agency. The budget is also accounted for as an enterprise fund. So that 01:23:04
being said, we do ensure that we're presenting you a balanced budget today so that our charges for revenue must cover our 01:23:10
expenses. 01:23:17
The principal operating revenues of the agency are water sales and all the related services that come along with that. 01:23:25
Operating expenses include water purchases, water production and general operating and maintenance expenses, which I will detail 01:23:31
out for you all today as a major part of our focus on. 01:23:37
This meeting. 01:23:43
The next slide. 01:23:44
Our projected revenue is at 6.5 million. This does include domestic water usage and irrigation water usage as a main basis for how 01:23:47
we spread the costs amongst. 01:23:53
All the member agencies. 01:23:59
Our rates are listed there that we do, that are provided to us by United Water and Playgrounds. 01:24:01
And so revenue is based on water purchases of each entity. 01:24:08
We this year are using. 01:24:13
Estimated actuals. 01:24:16
This means we're using fiscal year 23 actuals except for the June estimate because we're currently in June. Don't have that exact 01:24:19
figure yet. But by using FY23 actual water usage of each entity, we're aiming to get a more specific. 01:24:26
Revenue estimate for you all for each entity of. In the past we were using minimum required water purchases. 01:24:33
Based on United and Kyle, was minimum requirements for us. Now instead we are using. 01:24:42
Water usage from the prior fiscal year to estimate out for FY24. 01:24:49
Because we are using. 01:24:56
An estimated usage that is less than the minimum required water purchase amount. We have budgeted for you in this year's budget 01:24:58
the assessment that we will the fee we will receive from United for the take your pay because we are purchasing less than that 01:25:05
amount that minimum required. 01:25:11
Based on usage. 01:25:19
And we'll find, we'll discuss that particular pay fee and the. 01:25:21
Uh. 01:25:25
Expense side. 01:25:26
Next slide please. 01:25:28
So there you'll see at the top that projected expenditures are equal to the revenue amount 6.5 million. 01:25:31
So balanced, as I said. 01:25:38
Our. 01:25:40
As far as these expenditures go, there's two main components. The water purchase cost is always going to be the highest expense 01:25:41
for us, the $4 million figure there. 01:25:46
And then you'll see our operating and maintenance costs at 2.5. 01:25:51
Our operating and maintenance costs there, the 2.5 million can be broken out into two big buckets. One would be the what we call 01:25:55
say Fund 443, which is our water plant operations expenses. 01:26:01
That is 1 chunk of that. 01:26:08
That amount? 01:26:11
Is 1.9 million of that 2.5? Those are all the costs, all expenses it takes to run the water plant annually. 01:26:12
Aside from that, there's approximately 600 K of what I was calling water agency specific costs and saw outline those two buckets 01:26:20
for you my following slides. 01:26:25
Next week. 01:26:30
So that first bucket of water plant operations expenses are projected O&M costs total 1.9 million. At the bottom there, I wanted 01:26:34
to show you what that breakout is. You can see comparison of all the different expenses we do go through annually. 01:26:42
Our personnel wages and benefits are the most expensive there at about 600K. 01:26:49
These are all of our staff that we use throughout the year to run the plant. 01:26:57
These include lead water operators, trainees, operators, ones and twos, as well as some admin staff such as the public works 01:27:00
Director, finance director and myself. 01:27:05
And some public retirement stuff that help us too. 01:27:11
We see. 01:27:14
Contract services. 01:27:17
For uniform maintenance, the annual fees we get from the State Water Resources Control Board, as well as software costs and other 01:27:18
repairs and maintenance as needed. 01:27:24
It includes internal service costs such as the cost allocation plan, which is all the internal services you get from City Hall and 01:27:30
other public works expenses, fleet services to maintain equipment and certain vehicles, as well as risk management fees. 01:27:37
And the portion of the risk management is based on the personnel. 01:27:45
Percentage of that those personnel wages listed up top. 01:27:50
Next you'll see system maintenance, water analysis and meters cost. 01:27:56
Chemicals and utilities are broken out there because they're also pretty big buckets in themselves. 01:28:02
And then added up together at the bottom are small equipment purchases, supplies as needed, meeting costs and dues to. 01:28:08
Any agencies use. 01:28:17
Moving on to the next slide, we'll see the second part. 01:28:21
Of that 1.9 million operations cost. 01:28:26
They these are specific to HW such as that take your Patheos mentioning OF200K. This was not specifically budgeted out before. We 01:28:29
wanted to be more transparent about that breakout of that be instead of lumping it together with what we pay united. So that's why 01:28:35
you'll see this is a new amount shown there. 01:28:41
And I'll show you that when I show you individual line item budgets on further slide. 01:28:48
Our contract services include city attorney costs, outside auditor cost per annual audit and miscellaneous consultants as needed. 01:28:52
Property insurance are reserved. 01:29:00
And our interest expense? 01:29:04
The reserve. We're trying to build a reserve for any immediate capital needs. That way we if that if that reserves that 50K, so 01:29:06
that should we immediately have a need to purchase something. You don't have to come to HW board every single time so it's small 01:29:13
enough that we can proceed forward should emergencies arise. But. 01:29:19
Not so large so that we can come to you for major purchases. 01:29:25
See the? 01:29:30
The United Water official charges our power expense that we pay for that Dennis taught me about today. 01:29:32
And we are budgeting for some analyzer replacements that are due for replacements of equipment purchased there and last year we'll 01:29:39
see the board member wages that we. 01:29:44
Thank you all for helping us run this thing. We're trying to raise those in the future, yeah. 01:29:50
Next. 01:29:57
So now you're seeing the that same 6.5 in the. 01:30:05
Far right corner shown to you here by eye line item. So all the member agencies are listed there. Spiders are variable and fixed 01:30:09
rates. 01:30:14
For the year. 01:30:19
And the proposed budget is relatively close to the prior year of see that down there at the bottom. 01:30:21
The revenue from water sales is approximately 211,000 less than in FY23. This is due to the fact that before we were kind of over 01:30:27
budgeting that amount because we were doing that minimum required amount instead of basing it on usage. So now that it's lower, 01:30:33
that's the decrease you're seeing there. 01:30:40
This will. 01:30:48
Mean that we do have to budget. 01:30:51
The offset to that, which is that take your pay fee and we'll show that on the expense side next. 01:30:53
And So what did decrease here? Is that billing adjustment revenue true up? 01:30:59
That used to be a negative if you see that third line from the bottom. As far as the line items, though, that used to be a large 01:31:05
negative to revenue. 01:31:08
So it's kind of like an expense. So instead I want to show it to you on the expense side and here you see that take your pay fee, 01:31:12
that's the offset there. 01:31:15
Same as every year, finance will reconcile actual water purchases and revenues to actual costs and any adjustments will still 01:31:20
happen at the year. So we will still have that true. We're just not budgeting for it already. I just want to show you expenses and 01:31:25
showing that spread on revenues instead of budgeting and true. 01:31:30
Moving on to the expense like these. 01:31:36
And so here are those expenses we talked about these, the 6.5 includes what we went through earlier of the water expenses, the HW, 01:31:41
a water plant operation expenses and the agency fees and costs. 01:31:48
They are 22 K over prior budget. 01:31:57
And. 01:32:01
When compared to fiscal year 22, expenses are 1.2 million higher. 01:32:03
Primarily due to the water plant increase in expenses of 636 K. 01:32:06
Which is mostly for personnel increases. 01:32:13
The projected penalty of 212 that we were talking about which is that ticker pigs you'll see now added when it was not in prior 01:32:16
year. 01:32:20
And. 01:32:25
Increases in other fixed costs. 01:32:27
This is offset by United's decrease in their fixed costs. That decrease is 427 K. 01:32:30
That's why you see such a small increase from prior year. 01:32:38
Ohh, this budget is presented to you for your consideration approval. Please let me know of any questions you may have. 01:32:50
Is that a penalty that we get for not taking the? 01:32:58
Allocations. 01:33:03
Yeah. So would it be cheaper on us if we took the allocation? 01:33:06
Yes. 01:33:10
Yeah. So that fee we get penalized, it's $363 an acre foot. 01:33:12
There's a lot that we do not take. 01:33:16
So what's the reason why? I mean, are we just not good at conserving water? Everybody would be penalized for it. So I mean 01:33:19
conserving water and being monetarily. 01:33:24
Yeah, I mean we are, but it demands have been really low the last few years. 01:33:31
But we kind of just debate demands going up. 01:33:37
With the rollback of the level 2 to level one with the range, we're just kind of expecting demands to go up for sure for sure, so. 01:33:40
To say that the the way the United budget builds out in there. 01:33:50
If we didn't pay the taker pay piece of it. 01:33:55
It would get lumped into your fixed cost. What it's intended to do is make sure the OH system is funded 100%. Is that a fair? 01:34:00
Yeah, it's a double whammy because. 01:34:08
Golden in the operating goal would use your total allocation, because when you don't, you're also. If you're supplementing with, 01:34:12
tagging is paying even more. 01:34:17
Use the absolute most amount of the cheapest water and then not leave anything on the table. And that's really operationally the 01:34:23
goal. And they're going to get better at that sort of monitoring like keep in mind. 01:34:28
Then we have a project in Brian test on it for low flow pumps, so. 01:34:34
So to touch on that, if we can increase our groundwater, take we can eliminate the high, the high cost of tigers and then maximize 01:34:39
our groundwater too. I think that was disgusting. One of our previous meetings might have been the first session. 01:34:45
And pretty simple project. Not real pricey, but something can get done pretty quick. 01:34:54
Just in the background, you know, ask you through the numbers already, but yes. 01:35:00
We put the slide in just to kind of put it in context. 01:35:05
With the city's costs are because the other agencies you're looking you're saying? 01:35:08
What? What is the cost for the city when you provide the administrative, the overhead and all those things? Just pure salaries is 01:35:12
about 90% of the overall budget. Then you add in salaries with all of our. 01:35:18
Oregon House fees vehicles. 01:35:25
Which is probably other other agencies you realize you're. 01:35:30
Majority of your colleges in your your water, your chemicals, right, whatever. 01:35:33
The overall city overhead costs are for reason. 01:35:37
Legitimate before mentioned that one of the cost effective waysons. 01:35:41
Plants remove fluoride. 01:35:46
And that would save us money. Do we know how much that would save us? 01:35:49
I mean, it's around $10,000 a year that we spent on Florida. 01:35:53
Anybody else? 01:36:03
Question I'm just because I'm the old guy has been around here in a while I I just. 01:36:07
The previous budgets used to have a whole lot of notes. 01:36:13
That were included in there as far as how certain numbers for different agencies were arrived at. 01:36:17
I would just request that they even if it's an attachment, I like this format easy to go through. 01:36:25
But it's there to be memorialized with a lot of money, so those are actually directly out of the JPA agreement or defined all 01:36:30
those things. So it's but what happened? 01:36:35
Well, the actually the outcome of some of those was from hosting agreement, what was called the cost allocation and realignment. 01:36:42
Was one of the amendments. Yeah, yeah, it's just. But yeah, I don't know, just for. 01:36:50
Unfortunately for the Beach District, there's still, there's some old people around there that want to make sure that what led to 01:36:56
that and it's just easier for me to point to it and say hey. 01:37:00
It's also going to be done. 01:37:05
If there's an easier way when you're saying memorialize, I guess I want to give you the confidence memorial. Ohh yeah, because it 01:37:08
is part of the right the JPA group. See broken down. It just talked about how different. 01:37:14
How the city, what city pay, what's beach district, what other folks paid on a percentage basis, and how fixed costs were applied 01:37:20
to each agency. And it it just it was. 01:37:24
In there. But you are, you're right. I mean, there was a formal agreement written for it, yeah. 01:37:29
Yeah. 01:37:34
We need some data. 01:37:35
We have, we have. 01:37:40
That will check me on this. Yeah. You know exactly what you're referring to. Yeah, I mean, maybe if it's just an attachment to the 01:37:43
back of them, when we approve them, it just says, you know, hey, these, these numbers are right. But would be allocated based on 01:37:48
the phone and it was a short kind of short. 01:37:52
That way, I say, I did my job. I told Sarah. I checked him out. 01:37:58
Question on the membrane replacement project and depreciation expenses. Is the risk, is there a reason there's no dollar amount on 01:38:03
those line items? 01:38:07
I believe half the capital cost in general were not included in this budget because we do want to bring that to you separately at 01:38:11
another time. I believe there's a plan that's going to be in place of study to be done. 01:38:17
And once that consultant lets us know what projects are priority, then we'll come back. OK, That makes sense. Thanks. 01:38:22
Anything else? 01:38:30
Good job, Ashley. 01:38:33
Because real quick, I just want to thank Ashley and Luke are the Finance Department, it's been a team effort in the Beach district 01:38:36
as well. Mr. Watkins, you know we're excited to bring the budget on time this year. So just wanted to thank the Finance Department 01:38:40
to help you all mentioned that this. 01:38:45
Which is not traditionally been delivered. 01:38:50
Miss Martinez, you said we're gonna get on time and and yeah. 01:38:55
Very generous with the amount of time. 01:39:00
They spent less and we were both new. 01:39:01
Well, congratulations. Thank you so much. Good work. That's awesome. 01:39:04
OK, so we have a recommendation to review and adopt the proposed FY23 24H WA operating budget. 01:39:10
And the proposed fixed variable water rate components that emotion. 01:39:17
Motion to Approve second for the 2nd. 01:39:22
All in favor? Aye. All opposed. Hearing None. Motion passes unanimously. Thank you. 01:39:27
Next slide of agency members reports comments and requests for future agenda items. Anything. 01:39:34
Support comment. 01:39:41
Yes, I just want to make one comment. I just want to thank the city staff that's here today. It's, it's really. 01:39:42
Refreshing as a member agency, the leadership that's provided the confidence and the ability to. 01:39:49
When we ask the question, are we getting? 01:39:55
Responses. 01:39:57
Of people that are doing their homework and it's really refreshing process to be here today and I just want to compliment you all. 01:39:59
Thank you. 01:40:02
Yes. 01:40:07
I like this. 01:40:09
Boardroom. 01:40:10
Environment too. I think it just lends to more discussion of. 01:40:12
Speaking from the diocese. 01:40:15
I really like it for this strategic session. Yeah, whatever. Yeah, totally up to this board. There's no harm. 01:40:18
I'll look towards Georgiana, is it? Yeah. 01:40:25
It's harder to come down here than this is the council chambers. We were just having some issues with the Wi-Fi. 01:40:28
We pulled it off. They were just like keep it short because the school board meeting is starting, but other than that? 01:40:37
There's no. 01:40:45
That's what I thought. Yeah. 01:40:47
Very good. So if there are no member reports, comments, request for future agenda items, I'll go ahead and adjourn the meeting. 01:40:51
By the time is. 01:40:59
539 Wow. And our next meeting is scheduled for Monday, July 17th at 4:00 PM. 01:41:02
Thank you everyone. Thank you. 01:41:08
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We have a quorum. 00:02:39
Yes, great. Thank you. 00:02:41
We will now hear public comments. Zoom participants, please use the Raise Your Hand feature so we can call on you. 00:02:43
Comments are limited to 3 minutes. Madam Clerk, does anyone have a public comment? There are no public comments. OK, very good. 00:02:49
Mr. Agency Attorney, could you please read the closed session item into the record? Thank you. Chair Hernandez. There's one item 00:02:57
on closed session today. It is conference with legal Counsel Regarding anticipated litigation pursuant to Government Code Section 00:03:02
54956.9, subdivision B2. 00:03:08
Based upon existing facts and circumstances, as I understand them, significant exposure to litigation exists. 00:03:14
Based upon a three party agreement between the City of Portland and the City of Oxnard and the Colegas Municipal Water District 00:03:20
relating to water credits or pumping allocations and number of potential cases as well. 00:03:25
Thank you. 00:03:31
We are now recessed to closed session. The time is 4:02 PM. 00:03:33
Welcome to the Port Running Water Agency special meeting. It is now 402 PM. 00:03:41
Do we need to do another room? 00:03:46
4:41 PM. 00:43:24
Charitable. 00:43:26
And Madam Clerk, can you call the roll? 00:43:28
Alternate member LeBeau. 00:43:32
Present member Bashar, member McQueen Lashawn member Perez. 00:43:34
Vice Chair Debilly is absent, and Chair Hernandez here. 00:43:40
Do we have any public comments for the regular meeting? No public comments. 00:43:47
Can we get a motion to approve the agenda? 00:43:57
2nd. 00:44:03
All in favor. 00:44:09
All opposed carry None motion passes unanimously. 00:44:11
To be. 00:44:17
OK. So this brings us then to the consent you have no place in stations. 00:44:27
It's on calendar, the motion to approve and items 1-2 and three. 00:44:33
More advice and move to food items one through life no no, 1-2 and three. 00:44:40
Yeah. 00:44:47
2nd. 00:44:47
Well, you know. 00:44:54
I said no, for honor, no. 00:44:57
Is that OK? It looks like we are OK. All in favor? Aye. All opposed. Carry None. Motion passes unanimously. 00:44:59
And for the record chair fund, they skipped over the closed session report. There was no reportable action. Thank you very much. 00:45:08
All right. And we have no public hearings. 00:45:18
So we're now at item four and the business items. Item number four is the strategic planning workshop to two recommendations 00:45:24
considered directing staff to see whether the on call engineering services procurement process to support the execution of high 00:45:30
priority capital improvement. 00:45:37
We have a presentation on this item. 00:45:44
OK. 00:45:47
Stephanie, go ahead. 00:45:48
Yeah. Thank you, Chair. Good afternoon, Board. So, so we did have our first workshop last month. Today will be Workshop #2. 00:45:50
Some of the topics that will be covered water supply modeling, future opportunities and alternatives. 00:45:57
Findings and recommendations and then the implementation of an approach. 00:46:04
So I just have to go ahead and turn it over to Mr. Ryan Gallagher. No, they can't. Right. Thank you for having me again and. 00:46:09
Going through this process, I think it's been very productive. And so today will be our second workshop. Wrapping this up, are we 00:46:17
understand we might be able to view the PowerPoint or no? 00:46:22
My the Wi-Fi on my laptop is down. I'm going to see if I can access it from here. 00:46:29
I don't know. 00:46:35
If not, if you have in your packets, you can walk them together. OK, that's fine. 00:46:40
Yes, very good. All right, let's just. 00:46:45
Going to start again, so we're looking at, let's just skip this slide two. This is the strategic plan overview. 00:46:48
So as we heard from Dennis, this is the second workshop. The first workshop was just a month ago where we laid out the the 00:46:54
history. Why does PWA exist? What were the challenges that we're trying to be solved at the time? And what are the agreements that 00:47:00
were formed to create the GPA? What are the challenges? 00:47:06
Both on the legal side, operationally water supply that have been faced. 00:47:13
From the start of the organization to today and then what planning efforts have been conducted? 00:47:17
And really what we did is we identified some of those challenges to try to try to collect them into sort of pluck its areas of 00:47:22
focus that would need to be addressed with report. And so today we're going to focus in on some water supply modeling that was 00:47:28
done when you updated the efforts that we've done in 2015. 00:47:33
And then we'll look at some of these opportunities and really put everything together in a simple work plan that could be less 00:47:39
than 1/4. 00:47:42
So I'm going to skip slide three. That's just our intro to the water supply modeling. And if you look at the slide titled Water 00:47:46
Supply Model Updates and Analysis. 00:47:50
So as part of the 2019 facilities Master plan for PHWA was mainly focused on developing a CIP for the plant and looking at rehab 00:47:56
needs and operation needs. 00:48:00
It also included a component of water supply and really answering the question that looking at your current sources of imported 00:48:06
and groundwater, would there be challenges, what are the opportunities on modifying operation, what does that do to your overall 00:48:12
cost? And so we use utilize that model to look at five additional scenarios and these will be instructed in sort of bigger picture 00:48:18
of decision making. I think it helps make the final recommendations more clear and justifiable. 00:48:25
As far as what we updated, we took that model and updated the cost of water. Obviously since 2019 there's been changes in the cost 00:48:32
of water for imported and groundwater. 00:48:36
We looked at the allocation, made sure that for the GSP allocation for your groundwater that we were up to date on that ever 00:48:40
changing situation. But we mash it with your current understanding of that. And then we looked at your water quality as far as 00:48:46
what's coming into the plant, updated those numbers in the model and then finally looked at the the water demand bringing it in 00:48:53
line with your 2020 regional metric plan which you. 00:48:59
Until recently. 00:49:05
I should say. 00:49:10
OK. So slide five, that's the. 00:49:12
The first busy slide, I'll call it this is the dashboard from the water supply model. 00:49:15
And highlighted in red are really the boxes I want to point out. So this is the baseline and when we make those updates to the 00:49:22
assumptions what you can see in the first larger red rectangular box. 00:49:28
That is your groundwater supply and that's really the area where most concerned with. And when you look at the planning period, 00:49:35
there's the five different bars. 00:49:39
You can see that as you know, first five years you're fine and then the next, next five years you see a small deficit, but it's 00:49:44
marginal and then that that increases as it goes further and that's because you have to draw down on your allocation, you have 00:49:49
demand increasing. So that situation. 00:49:54
There is a challenge as you get into those later years. 00:50:00
And but I will say from 2019, these numbers are actually a little bit better. Your demand projections have gone down, which I 00:50:03
think are more realistic with. 00:50:07
What we're actually seeing. 00:50:12
Across the river agencies. 00:50:14
And then the dollar amount here, that's the smaller white box that's 128,000,000. 00:50:16
This isn't a number that you budget around. I point that out here because as we look at the other scenarios, you can see how that 00:50:20
impacts your overall cost to operate. 00:50:25
And so it's really meant to be used more for comparison than these budgeting because this is over a 25 year plan period. 00:50:30
So the next slide is going to be our scenario 2 which is water quality and So what we did within the model is just tweak 1 00:50:37
parameter. 00:50:40
And that is what is your target TBS? 00:50:44
And you remember from our first workshop we had presented? 00:50:46
OK. 00:50:52
Sorry there. 00:50:53
Those comparing. 00:50:56
Uh, so yeah, this is the water quality one. 00:50:58
If you remember from our workshop one, we looked at the water quality that HW puts out to its member agencies. We also compared it 00:51:01
with some neighboring agencies. 00:51:06
And yours is is a bit lower from the original model we're looking at though that's a good thing, right? We're delivering better 00:51:11
water quality to our customers, especially compared to our neighboring agencies. 00:51:15
And there's a price difference with that. And so when we modify that from 390 to 600, which is still a lower TDs that our users 00:51:20
agencies, it would be a higher water quality. You can see the cost impacts at 119,000,000 for that planning period. 00:51:29
That's a yeah, 10 million, almost $10 million in savings. So that gives you a flavor of what the impact is to lower slightly 00:51:38
modifying that water quality. 00:51:43
It's still achieving a high, high quality wine. 00:51:49
So for the. 00:51:52
The next slide. This is scenario three so. 00:51:54
We just again need one tweet to the baseline and for this tweet we looked at what would we in this scenario three track along is 00:51:57
well what does it look like when we make a capital investment and this situation capital investment would be optimizing. 00:52:05
So this would be a third stage RO. 00:52:13
Basically trying to get improved the recovery just from 80 percent, 85%. So that means there's going to be less crime and more 00:52:16
water for every, every drop coming in from the United that's your groundwater supply. And we make that tweak, we make that 00:52:20
investment. 00:52:25
You can see on the water supply it has about the same impact as your on your water supply in those future here. So it helps with 00:52:30
those future deficits almost equivalent to what it would be if we just tweak the water bowl. The cost savings though you can see 00:52:37
are not not quite as good, but keep in mind that's still say 5,000,000. 00:52:44
For just a, you know, $1.2 million investment. So you're getting that money back, you're helping address some of these longer term 00:52:52
water supply. 00:52:56
Issues, but maybe not to the same degree as just the shift of our growing. 00:52:59
I'll move to the next one, which is. 00:53:05
On that. 00:53:09
If you took. 00:53:11
I know it's tough when you're doing this model, but if you took. 00:53:12
Scenario three and all related. On scenario two, you can see even more significant savings, right? The combination of both, right 00:53:16
where you you're optimizing the plant plus lowering water quality. 00:53:22
Right. I love the way you think. That's scenario 5. 00:53:29
We didn't plan this, I promise. 00:53:34
That you just called me out. I'm not being prepared. No, no, no. 00:53:37
All scenarios isn't very clear that they're stacked, but. 00:53:43
So it's a great point and we just have one more scenario that we'll actually see that altogether. 00:53:47
The reason we kind of split it up is we wanted you want, we wanted to see how these impacts compared to each other. 00:53:52
Because the magnitude of impact is different between them and so just wanted to see them independently stacking better. Scenario 00:53:58
four is stable demand and for this one. 00:54:03
Look the last. 00:54:08
Five years, I'm not looking at this current, this current county because it's a little, it's a little bit odd with the rate that 00:54:10
we had. But if you look at the previous years, you've been pretty stable around 4000 acre per year plus or minus. 00:54:16
And So what we did for this scenario is we looked at it. What if the demands increases didn't happen as projected #1 measure plan? 00:54:22
What if they they stabilize? 00:54:27
And that's not a completely unrealistic scenario. You don't have a lot of large development in these areas. 00:54:32
You do have. 00:54:37
On on the regulation side, there are new laws being put in place that will continue to ratchet down on your per capita water use 00:54:40
within the house and so this is not completely unrealistic scenario. 00:54:47
Certainly based on going back to previous fertilizer major plants, we've never had the demand and that's not unusual but that you 00:54:55
see that a lot with agencies across some California but. 00:54:59
You just haven't seen it. 00:55:05
So if you look at that, you can see this has a very significant reduction going from 128,000,000, so to 104 and your water supply 00:55:08
now your deficit is pushed. 00:55:14
Basically back to your current contract with lesser contract, currently THW with water sales agreements low agreement, those are 00:55:19
all currently set to expire in 2036. 00:55:25
So with this alone, you're really pushing out that issue. 00:55:31
Would that concern, I should say, beyond that, that? 00:55:35
Contact tracing. 00:55:37
And then finally, as Richard led us to, we have scenario 5, this would be all scenario. So what happens if we start to stack these 00:55:39
together, we're looking at a 25% reduction, 100 and 2895 million. 00:55:46
This is the water quality, the recovery rate and the capital cost of vestment. And look at our water supply that's large 00:55:55
rectangular box. Our water supply shortfalls are pushed well towards the end of our plane beyond or 20/30/16. 00:56:02
And So what this shows us is that it would be prudent to invest. These are not significant capital investments. Making a small 00:56:10
tweak to our water quality will have a will help in addressing. 00:56:17
Making our water supply and cost effective. 00:56:23
And so we kind of see these things all together, it's a pretty significant. 00:56:26
Impacted your overall cost in a lot of science supply, which are two major focuses. 00:56:30
All right. 00:56:37
Any questions that have won this? Any questions? 00:56:38
All right. 00:56:45
So the next slide is the opportunities. So that's just a header slide. We'll go to the slide title opportunities to explore. 00:56:46
So I'm gonna go through a couple of more detailed slides. This is really a summary slide. We'll talk about opportunities to 00:56:55
explore what we saw as the kind of the biggest impact would be regional projects, would put these into sort of buckets, regional 00:57:00
projects. 00:57:05
And this could include United Extraction Barrier project which I will talk about in more detail. 00:57:10
Kayaks is looking at regional planning efforts across the county, looking to bring water supply and looking for partners. 00:57:15
And this, this one Oxnard Rash Salter won't go into detail, but opportunities to work with the city of Oxnard seeing if they have 00:57:21
the infrastructure. So there could be opportunities there. I'll talk in detail on the on the next slide on the United 1, but 00:57:27
really just pointing out that there are regional planning projects going on. 00:57:33
In the county would be. 00:57:39
Could be coordinated with HW that looks really beyond. That's one of the reasons so. 00:57:41
With what we're proposing now. 00:57:46
That brings us through that period and really we start looking at what happens actually. 00:57:48
He should be a water treatment plant. That category. These are opportunities that you could look at that would be in the future. 00:57:53
But it would be more focused on THW looking at your facility. So small scale diesel, I'm talking in detail about that one. 00:57:59
The excess water back to Oxnard recycled water Direct Clover reuse. 00:58:06
We don't need to talk a lot of detail about that, but what those go back to is just. 00:58:10
On the recycle waterfront, you saw the impact of lowering demand in your system allows you to utilize the majority of groundwater, 00:58:15
less imported water, which is expensive. 00:58:20
And so those are the examples of we'll talk in detail about those. I just wanted to hit one from each category. 00:58:26
And then the last one is funding. This is not something that has been. 00:58:31
I've seen in the last trying to think of the last project that got right. 00:58:36
Funding, that was. 00:58:40
She was very successful in getting grant funding as part of the original formation. 00:58:43
I haven't seen it pursued so much in recent. 00:58:49
Passed and this is really an area that given the type of work that you're doing. 00:58:52
Could be successful in some time. I'll give a couple examples. 00:58:56
Something new to the next slide. This is the United attraction barrier. 00:59:00
So this project is they're they're in the planning phase. It's probably realistically it could be 10. 00:59:04
They're really in early stages of doing some pilot testing, being a pilot well. 00:59:13
There's been some conversations. It would be an ideal time to start getting involved in those conversations when they're looking 00:59:19
to build. 00:59:21
Is a extraction barrier. 00:59:25
Facility near the point of view base that would help both address the sea water intrusion. 00:59:28
As well as provide a new source of water mains and both the goal but also the opportunities at 20,000 per feet to go building on 00:59:34
that. This is the item that we discussed on our trip to DC. 00:59:41
And we lobby for. Remember that. 00:59:49
RP 21 Regional Defense. 00:59:52
Project. 00:59:55
21 We went with the Board of Supervisors and. 00:59:56
4th. 01:00:02
Returns. 01:00:04
It's a very interesting project. It's. 01:00:06
It's not any longer term, regardless of how you participate in it. 01:00:08
I can't see how there would be an impact only because point of view takes water from your system. 01:00:12
And so if they're taking water, what that looks like to maintain this capacity, that would all have to be figured out, but there's 01:00:17
certainly opportunities. 01:00:21
Either to return water through that existing pipeline. It's 12 inches aged so that may not be a long term strategy, but. 01:00:25
Participating in some degree in society. 01:00:34
Could be an opportunity. You certainly have I don't believe given its timeline and its uncertainty. I mean there's there's a lot 01:00:36
of. 01:00:40
Funding and technical challenges that would have to be worked out. 01:00:44
And. 01:00:48
It's not something that should stop you in doing what we're proposing, because really what we're looking at is optimizing what you 01:00:49
have and really repairing we having something continues through the life of your current contracts. But this is certainly 01:00:53
something that should be engaged. 01:00:57
As a as a viable opportunity. 01:01:02
So I think we're getting into talking about what that might look like and what those costs could be. 01:01:06
Is part of this action plan. 01:01:13
The next slide which is the small scale we sell, this is from that bucket of projects that are described as the PWA centric or 01:01:17
focused. It was mainly at the monetary plan. 01:01:21
This was an interesting item. 01:01:26
That could be explored. 01:01:28
And this would be similar to the United project in that it is a longer term planning project. This would be something that. 01:01:30
These could be potentially viable. 01:01:37
At the end of the 21st 36 contract, if you're going to continue on this might be part of that portfolio. 01:01:39
I bring this up because of the similarities to Vandenberg Space Force Base. They are currently implemented design on this small 01:01:45
scale diesel use these boys. 01:01:50
And depending on how much supply, there would be a collection of these boonies. 01:01:55
And so it's interesting in the military. 01:01:58
Connection with that being the. 01:02:02
Air Force Space Force Base. 01:02:04
And. 01:02:06
Where they are in their stage and how that could potentially be used here, Victor County. 01:02:07
Would be sort of a repurposing of your current facility. It's a bit out there and there really shouldn't be anything other than 01:02:12
tracking. 01:02:16
Because you gotta wait and see what the viability of this program is. But they they are moving forward. There's plenty of time 01:02:20
you'll see. You know, unlikely in the next couple of years you'd see some numbers of what the cups of water is and how the 01:02:24
environmental process works, but. 01:02:29
It was an interesting question. 01:02:34
The next slide was the grant opportunities and this is certainly part of the high priority items which would be in the first 01:02:37
phase. 01:02:41
We're looking for grants. The projects that we talked about in the early stages that we've put in high priority are projects that 01:02:45
are going to reduce your cost of water or better utilize the supply sources you have. 01:02:50
Which fall into, for example, the MWD Local Research Program. 01:02:56
So there are opportunities similar to that you mentioned. I think the defense community infrastructure pile around. I think that's 01:03:02
some great hunting for that. Yeah. 01:03:06
Because the city, you know that Grant was just moved last week, so do at least have experience what it takes to go through that 01:03:11
process now and the basement very supportive earlier support base. 01:03:16
So definitely opportunities and these early stage projects. 01:03:23
What? What? 01:03:27
Usually what happens, and this was done when the pilot when the third stage RO was done there usually you do kind of a grant. 01:03:29
So it's a high level, just here's the project basically scan all the opportunities of grants and then you try to identify the best 01:03:37
opportunities and then what's tricky is you tie it then with. 01:03:42
The delivery, they all have different sort of schedules and differentiation for the application, so. 01:03:47
Looking at. 01:03:53
The high priority projects and then overlaying that with grant opportunities. 01:03:54
This should certainly be included in the first phase. Awesome. Great opportunities, really quick. 01:03:58
Just because I don't want to forget to say it later. 01:04:07
I think if some of these projects in particular like the plant optimization right that's it demonstratable basin benefit project 01:04:11
where. 01:04:15
And I'm going to say it in terms of. 01:04:20
When we start talking about next steps that I think we need to prioritize something like that, it might like say that you've got 01:04:22
the Sigma ground. 01:04:27
Round one funding down now Round two. 01:04:31
Funding for GMA constant update. 01:04:35
The GSP in order for any project to be approved. 01:04:38
Or that Sigma round one or Grant round two funding. It must be an included project in the GSP. 01:04:43
So to the extent that we have projects that would meet that criteria, we should focus on getting those. 01:04:49
Project ready. I know Ryan has a lot of experience and and that is he's helping my other agency and administering the grant money 01:04:56
that we received for it and and building the project. 01:05:02
And even more so. 01:05:08
I would say that. 01:05:12
In the current grant round one funding. 01:05:13
I believe, yeah, there may be some additional money left that was. 01:05:17
Awarded to folks today. 01:05:24
That may not be using at all. 01:05:26
At the end of that. So they may be looking for really quick projects. 01:05:28
That can get lumped in to to use X / 7,000,000 dollars given to both basins and I think I'll use my project as an example. 01:05:33
We got early on the estimates and I think it was what over $5 million for a pipeline project. 01:05:40
We just got back the updated estimates with real cost and votes in it. 01:05:47
Almost 70, not, excuse me, 30% less than that. That's a lot of money left on the table. 01:05:54
So that's not a knock on Ryan. The cost changes have changed a lot since we did initial stuff when we put out the original 01:06:00
engineers estimate to go after it. But there's going to be money left that's going down. 01:06:05
I was gonna say that. 01:06:10
No, that's not it. You just promoted. Yeah, well, no. You're original engineers. Estimates sucked. 01:06:13
Yeah, sorry. 01:06:19
Classified. 01:06:21
I think there may be some some really quick opportunity for us and I want to make. 01:06:23
Sustainable groundwater management. So they gave they it was really odd process. 01:06:29
I don't know the Round 2 will be the same, but basically the state said Hey, you guys at the local level decide what projects. 01:06:35
You want to fund with this $7,000,000 per basin. 01:06:43
And it got done in a hurry. Quicker than you've ever seen any application process go through and and an odd approval, but. 01:06:46
There there may be some additional money and and rhymes very familiar with with that, so I just thought I'd mention when we start 01:06:55
to build into the staff recommendation at the end. Also a lot of these projects need to have. 01:07:00
New York construction running, if not construction that needs to be updated next. 01:07:06
And the third stage, RII agree it would be a great project because you're. 01:07:11
Better utilizing the groundwater supply and essentially creating any. 01:07:16
And they supply like. 01:07:20
To your point, the player design report is now. 01:07:22
Five years old, maybe more. And there was some piloting my there's some work that needs to be done, minor work that needs to be 01:07:27
done to basically support that. So those grant applications. 01:07:32
You're basically making a commitment to something, and you need to be able to define it, support it, and then later. 01:07:38
Measure and demonstrate it. And so we want to be confident that we can hit what we're promising. 01:07:44
So that was the great opportunities. 01:07:52
Next slide. 01:07:57
Which is our next steps part, So we'll move to. 01:07:59
This slide. Perfect. OK, so this is going to wrap things up here, so as part of Workshop one. 01:08:04
We started to. 01:08:10
Consolidate a lot of the issues or concerns or opportunities that we're seeing put them in these four areas. So we have the legal 01:08:11
institutional and the financial that was a big part of the. 01:08:16
Workshop one, we also touched on a workshop one, the asset management, and during workshop one we really referred to it about to 01:08:21
the CIP from the 2019. 01:08:26
Facilities master plan, but really that's asset management. That master plan is focused on rehab and rehabilitation is getting 01:08:32
visibility to. 01:08:36
Make sure that it's still running in these future years. And I put some information in here that I thought would be helpful. So 01:08:41
these are just a couple of. 01:08:45
Industry standard. So basically you're looking at for what should you be budgeting. 01:08:50
To maintain your facilities and systems so. 01:08:54
These recommendations are anywhere between one and 4% and that's replacing us. 01:08:57
So just to put that in context, I pulled up your installation process, just the facility which was 25 million marks, that's the 01:09:01
facility in the pipeline. 01:09:04
That was installation process from 1996, so arguably much higher down. 01:09:08
But if you just look at that, you're looking at somewhere between $250 million a year to maintain your systems and so that's. 01:09:12
Danger. 01:09:22
I I don't have the direct numbers of what's actually been spent. 01:09:24
I think that has fallen a little bit short. Obviously that's a large range. 01:09:27
And and rightly so, the facility was newer. 01:09:32
These aren't things you're really thinking about and now the facilities you know 25 plus years starting to plan for those would be 01:09:35
prudent and would avoid sort of shocks in the system if things if you're having failures which. 01:09:41
So the lot last bullet there, the long term planning, these are the four areas that that are that the focus areas and use that 01:09:50
then to go to the next slide. 01:09:54
This is essentially the work plan. This is what staff can utilize for the next few years moving through. 01:09:58
The different areas that need to be addressed. 01:10:06
And they encapsulate both. 01:10:09
Agreements. 01:10:12
Getting issues resolved. Their tasks that fall under the responsibility of staff there. Some of them are just small maintenance 01:10:13
projects, some are. 01:10:17
Regional coordination somewhere CP So. 01:10:22
There's the four columns there, and then you see the high, medium and low optimal left. So really the. 01:10:25
The priority items are there on the top and that's high. 01:10:30
And the reason that those are in the high category are we try to the highest impact items. These are the items that we're saving 01:10:34
money. 01:10:37
Operationally, you know whether that's energy cost of water. 01:10:42
And then these are other items that sort of build into future phases. So we try to move all those into the high phase, not to say 01:10:46
the medium, low aren't as important, but the impact from those. 01:10:51
Will not be as as. 01:10:56
The strongest, and I'll just walk through the high ones. I want you to go through all of the high and the legal institution, the 01:10:59
operational audit. We we learned at the last workshop that contractually we need to be doing this. 01:11:04
We missed our cycle. We need to get that and that will actually feed into the CIP. New items will come up that gets kind of built 01:11:10
into that CIP because now remember the CIP is. 01:11:15
He's aged a bit as well it's been. 01:11:21
Or you just use that was done third party. 01:11:23
Agreement, Landis. Agreement those are. 01:11:26
Minor pieces that need to be addressed. Some of those are already in action. 01:11:28
Under the financial fluoride system. 01:11:31
If we can remove the fluoride system, there is operational savings. There's safety savings. 40 Silicic acid is a very dangerous 01:11:34
chemical. 01:11:38
And there's there's justification for not providing it which. 01:11:42
Laid out the master plan, Could you talk through? We can find a way forward, but. 01:11:47
That would save money instantly, probably make your operator happy. 01:11:52
The low flow pumping, this helps us to achieve a higher utilization of groundwater because of the way that the facility operations 01:11:56
are, the demand are. This is a capital project that saves money. 01:12:01
Lower pressure in the system, same thing and the grant opportunities, we want to do that early part of the high priority so that 01:12:07
we can start to. 01:12:10
Position or projects to be able to to get those great values in the next phase and you see third stage R just below there. 01:12:14
On the asset management, these are really the high priority ones that tick rehab and then replacement. 01:12:21
And then really refreshing that five year budget. 01:12:26
All those other minor there are smaller CIP's that that should be incorporated but I I didn't want to they're fairly small 01:12:29
probably quality or your operational budget but that really that CIP starting to move through that. 01:12:36
And then finally the long term planning getting in having the conversations with our regional partners. 01:12:43
To make sure that we're in the conversation and so that. 01:12:48
As these projects start to take shape, if they do move forward that we are positioned to make sure that we get the benefit that we 01:12:52
need and we at least have an option as we near 2036 because. 01:12:58
Really in the next five to seven years you might start, you're going to start thinking about what are we going to do in 2036? 01:13:05
Because no matter what direction you're going, you're going to need several years to sort of. 01:13:10
Update the agreements. 01:13:16
So it seems like a long time away. 01:13:18
Compass. 01:13:21
Right. 01:13:22
I'm going to the next slide. This is implementation. Just want to highlight this is really a you saw from the previous slide. It's 01:13:24
really a mix of. 01:13:27
Resources that are needed. You need to have a point person that's your your, as I understand it the city of Portland and that's 01:13:32
that's Dennis Water GM. But really you're going to need some resources to help implement some of the more technical projects. 01:13:39
You if you don't have already, you want some. I'm assuming you have mom called contractors to go through some of the smaller 01:13:46
projects. So there's you need these agreements in place these resources in place and then you need your stakeholders indication. 01:13:52
That's Channel Islands. It's the Navy representative and that's your legal. 01:13:57
Because some of these tasks. 01:14:03
Purely. 01:14:05
Dennis Bucket working with Legal Some of them are going to be Dennis working with the Navy representative. 01:14:06
You know, working with all partners, so. 01:14:12
It's the implementation is gonna you need to have a whole person. You need to have someone leading the charge. 01:14:14
And this work plan provide provides at least a starting framework that could. 01:14:20
We have posted modify this report but it's a good starting point. 01:14:24
And then finally. 01:14:30
The next step so the work plan. 01:14:32
Has the high priority items listed there. 01:14:35
He's going to be, as we've gone from these two workshops, what we have found. 01:14:38
And your discussions and evaluation, working with staff as the areas of focus for the high priority. 01:14:43
And really the next step is to to move towards those and to make sure you have your team in place to execute. 01:14:49
So. 01:14:55
Your sacrifice, that's why we could have structured that because you say we assume we have uncle, we don't. And so one of the 01:14:56
things we mentioned the board before is you know this agency depending upon the city for delivery projects and focus 01:15:02
administration I've shared in the past and where the city is trying to build that capacity. 01:15:08
Council members have heard that we share that with others, so that's what we set it up. So the recommendation is to really direct 01:15:14
staff to get these on call agreements in place. 01:15:18
Get some resources in place and then make sure that we pay your concurrence. 01:15:23
It's time to invest in. It's really kind of step up our investment. 01:15:26
I'm in the water is kind of been. 01:15:30
Sitting back using these facilities for a long time without making those investments, there was some question about the agency and 01:15:33
where it was and. 01:15:37
That was part of the desire I'm thinking, the impetus for bringing the strategic planning together. I think it's really worked out 01:15:40
great. It's showing that. 01:15:43
By making these investments, we can lower costs over the long term, which is what you want to build the city. And if you know if 01:15:47
you could have a facility, you have to invest in it this time. 01:15:52
To change out memory just time and do other things. It's time to really invest here, so. 01:15:56
The Board recognizes that and you also mentioned A5 year budget. I think in the past it's really been a five year plan. 01:16:03
It hasn't been budgeted per se. Way we're set up, it's really passed through. We've done very little capital. When we do, capital 01:16:08
really comes through in that end of the year true up. So I think over the next year, Dennis coming on board, he's definitely 01:16:13
interested in like. 01:16:17
Put together more five year budget so that the other agencies. 01:16:22
Depended upon all the agencies depend upon this water agency know what to activate on an annual basis in other countries. 01:16:26
Pass. 01:16:35
That's what we see that evolution really coming out over this next year so. 01:16:36
Second questions for Ryan or? 01:16:42
I guess maybe maybe a comment. I really appreciate what you guys put together here and I'd like to see us. 01:16:47
As you said, kind of formalize it, right? We've got a green, but we've also kind of sat here and talked but something that you 01:16:54
know. 01:16:57
During disappears and and Misty and and and you guys are all still sitting here, someone who comes on and said what the hell. 01:17:02
The ordinance in this process adopted. 01:17:10
These things, that's why we're moving forward with it and you know, just for. 01:17:12
Yeah, consistency moving forward for other board members and people coming on board. 01:17:16
On Zombie, that'd be one comment, whether that's going to be the resolution or however you guys want to set that up. 01:17:21
You know, I I think it's yeah, I agree with the high, high priority and the long term planning. I know it'll come back before I 01:17:31
just for some reason I want to share these thoughts really quickly. 01:17:35
When we talk about, you know, I think one thing that's important for us to to consider is how we want to engage. 01:17:40
Future regional projects. 01:17:49
And. 01:17:51
I think Ryan referenced it. And so I'm not saying anytime you try and do long term modeling what your water supplies, it's really 01:17:53
tough to to define what that is. 01:17:57
And I recognize that. 01:18:02
And some of the assumptions built in here, right, are taking that ramp down that's going to occur that the GMA it's the only thing 01:18:04
that we really know is out there today, right the the groundwater sustainability plan said. 01:18:10
This is going to happen. 01:18:15
However, a lot of those regional projects say you're not going to be here, you're going to be up here. 01:18:17
And for us keeping that in mind and how we focus on the engagement of those and getting a long winded way of getting around to my 01:18:23
point of. 01:18:27
There's two different ways of this, 2-3 different ways that can happen. 01:18:32
1 can be that you kind of sit back and let the regional approach and what what folks have said will come forward and believe to be 01:18:37
true, whether it's an adjudication process or whatever. Somebody's got to pay for these projects, right? 01:18:43
And so if you want incremental benefits, what do I mean by incremental benefit, right, if you sit back and you play a groundwater? 01:18:49
Ground what are they called groundwater sustainability fee is what the they've been talking about or a a groundwater replenishment 01:18:57
fee. 01:19:00
Gmail. 01:19:05
On every acre foot of water and you would get indirect benefit, right. So how do you, how do you describe that right you say? 01:19:07
Well, there's going to be a new thousand acre feet of water delivered and your. 01:19:13
25% of it, so you would get. 01:19:19
258 your feet out of that, we're paying groundwater replenishment. 01:19:22
Is that enough water or do you want to directly participate in these projects with capital and not get incremental benefit, but 01:19:28
pay capital and get defined benefit that's not incremental and? 01:19:34
I think everybody's evaluating it that way and I think our team would be wise to begin looking at that and saying. 01:19:40
As we evaluate it, are we OK with just having incremental cost portions of it? Do we need to directly engage in any of these 01:19:47
projects because you can put a great deal of effort into direct engagement and development. Do you really need it? Or 01:19:53
alternatively, if you don't put enough into it, you really needed it, right, then you come up short and. 01:19:59
There are kind of things that are out there today that. 01:20:05
I can see us participating in that could create water tomorrow if we wanted it, but I don't think we're in that position today, 01:20:09
but positioning ourselves with those things and and exchange programs, I think if we think it's necessary or something we got to 01:20:14
keep it the forefront and and where we're at. 01:20:20
This is complete representation. Do you have anything else? Thank you. This is really well done. 01:20:36
I really like your approach on this, but thank you so much for the good work. 01:20:43
Thank you for the opportunity. 01:20:48
OK, we're back. Do we have a? 01:20:52
We have a recommendation to direct staff to proceed with an on call engineering services for payment process to support the 01:20:55
execution of high priority capital improvement. 01:21:00
Was there anything else that we were going to? 01:21:05
Want to recommend? 01:21:09
Success. 01:21:11
Move staff recommendation. 01:21:13
Second, Second all in favor. All opposed carry None. Motion passes unanimously. 01:21:16
Thank you. 01:21:23
Thanks. 01:21:25
All right. 01:21:28
Yeah, yeah, the graphics helped a lot. 01:21:30
Thank you so much. 01:21:36
OK. We're going to move on to item 5, which is the Gates Way operating budget and fiscal year 20/23/24. 01:21:38
This is the recommendation to review this Office proposed FY23 24H WA operating budget and the proposed fixed and variable water 01:21:47
rate components. 01:21:51
Staff may proceed with the presentation. 01:21:59
Hi, my name is Ashley, the county manager over the finance department. 01:22:03
This is my first time presenting and being here before you today. 01:22:07
Thank you. 01:22:13
I knew to THW a so. 01:22:15
I apologize if some of my explanations here with the budget little two elementary for you all, but this was really neat getting to 01:22:19
learn the budget, how the process works. 01:22:24
Repeat WA I've worked on the city budget before. This is my first time working with HWA so. 01:22:29
Again, forgive me if I repeat myself or I'm a little too. 01:22:35
Umm. 01:22:38
High level or not the right amount of detail only get better by pitchfork with you all little more on this budget moving forward. 01:22:39
Thank you. 01:22:43
Thank you, Georgian. 01:22:49
So we can move on to the first slide, please. 01:22:51
So Page TWA operates as a utility enterprise. It does have its own fund. 01:22:58
Totally separate from the city is its own separate entity agency. The budget is also accounted for as an enterprise fund. So that 01:23:04
being said, we do ensure that we're presenting you a balanced budget today so that our charges for revenue must cover our 01:23:10
expenses. 01:23:17
The principal operating revenues of the agency are water sales and all the related services that come along with that. 01:23:25
Operating expenses include water purchases, water production and general operating and maintenance expenses, which I will detail 01:23:31
out for you all today as a major part of our focus on. 01:23:37
This meeting. 01:23:43
The next slide. 01:23:44
Our projected revenue is at 6.5 million. This does include domestic water usage and irrigation water usage as a main basis for how 01:23:47
we spread the costs amongst. 01:23:53
All the member agencies. 01:23:59
Our rates are listed there that we do, that are provided to us by United Water and Playgrounds. 01:24:01
And so revenue is based on water purchases of each entity. 01:24:08
We this year are using. 01:24:13
Estimated actuals. 01:24:16
This means we're using fiscal year 23 actuals except for the June estimate because we're currently in June. Don't have that exact 01:24:19
figure yet. But by using FY23 actual water usage of each entity, we're aiming to get a more specific. 01:24:26
Revenue estimate for you all for each entity of. In the past we were using minimum required water purchases. 01:24:33
Based on United and Kyle, was minimum requirements for us. Now instead we are using. 01:24:42
Water usage from the prior fiscal year to estimate out for FY24. 01:24:49
Because we are using. 01:24:56
An estimated usage that is less than the minimum required water purchase amount. We have budgeted for you in this year's budget 01:24:58
the assessment that we will the fee we will receive from United for the take your pay because we are purchasing less than that 01:25:05
amount that minimum required. 01:25:11
Based on usage. 01:25:19
And we'll find, we'll discuss that particular pay fee and the. 01:25:21
Uh. 01:25:25
Expense side. 01:25:26
Next slide please. 01:25:28
So there you'll see at the top that projected expenditures are equal to the revenue amount 6.5 million. 01:25:31
So balanced, as I said. 01:25:38
Our. 01:25:40
As far as these expenditures go, there's two main components. The water purchase cost is always going to be the highest expense 01:25:41
for us, the $4 million figure there. 01:25:46
And then you'll see our operating and maintenance costs at 2.5. 01:25:51
Our operating and maintenance costs there, the 2.5 million can be broken out into two big buckets. One would be the what we call 01:25:55
say Fund 443, which is our water plant operations expenses. 01:26:01
That is 1 chunk of that. 01:26:08
That amount? 01:26:11
Is 1.9 million of that 2.5? Those are all the costs, all expenses it takes to run the water plant annually. 01:26:12
Aside from that, there's approximately 600 K of what I was calling water agency specific costs and saw outline those two buckets 01:26:20
for you my following slides. 01:26:25
Next week. 01:26:30
So that first bucket of water plant operations expenses are projected O&M costs total 1.9 million. At the bottom there, I wanted 01:26:34
to show you what that breakout is. You can see comparison of all the different expenses we do go through annually. 01:26:42
Our personnel wages and benefits are the most expensive there at about 600K. 01:26:49
These are all of our staff that we use throughout the year to run the plant. 01:26:57
These include lead water operators, trainees, operators, ones and twos, as well as some admin staff such as the public works 01:27:00
Director, finance director and myself. 01:27:05
And some public retirement stuff that help us too. 01:27:11
We see. 01:27:14
Contract services. 01:27:17
For uniform maintenance, the annual fees we get from the State Water Resources Control Board, as well as software costs and other 01:27:18
repairs and maintenance as needed. 01:27:24
It includes internal service costs such as the cost allocation plan, which is all the internal services you get from City Hall and 01:27:30
other public works expenses, fleet services to maintain equipment and certain vehicles, as well as risk management fees. 01:27:37
And the portion of the risk management is based on the personnel. 01:27:45
Percentage of that those personnel wages listed up top. 01:27:50
Next you'll see system maintenance, water analysis and meters cost. 01:27:56
Chemicals and utilities are broken out there because they're also pretty big buckets in themselves. 01:28:02
And then added up together at the bottom are small equipment purchases, supplies as needed, meeting costs and dues to. 01:28:08
Any agencies use. 01:28:17
Moving on to the next slide, we'll see the second part. 01:28:21
Of that 1.9 million operations cost. 01:28:26
They these are specific to HW such as that take your Patheos mentioning OF200K. This was not specifically budgeted out before. We 01:28:29
wanted to be more transparent about that breakout of that be instead of lumping it together with what we pay united. So that's why 01:28:35
you'll see this is a new amount shown there. 01:28:41
And I'll show you that when I show you individual line item budgets on further slide. 01:28:48
Our contract services include city attorney costs, outside auditor cost per annual audit and miscellaneous consultants as needed. 01:28:52
Property insurance are reserved. 01:29:00
And our interest expense? 01:29:04
The reserve. We're trying to build a reserve for any immediate capital needs. That way we if that if that reserves that 50K, so 01:29:06
that should we immediately have a need to purchase something. You don't have to come to HW board every single time so it's small 01:29:13
enough that we can proceed forward should emergencies arise. But. 01:29:19
Not so large so that we can come to you for major purchases. 01:29:25
See the? 01:29:30
The United Water official charges our power expense that we pay for that Dennis taught me about today. 01:29:32
And we are budgeting for some analyzer replacements that are due for replacements of equipment purchased there and last year we'll 01:29:39
see the board member wages that we. 01:29:44
Thank you all for helping us run this thing. We're trying to raise those in the future, yeah. 01:29:50
Next. 01:29:57
So now you're seeing the that same 6.5 in the. 01:30:05
Far right corner shown to you here by eye line item. So all the member agencies are listed there. Spiders are variable and fixed 01:30:09
rates. 01:30:14
For the year. 01:30:19
And the proposed budget is relatively close to the prior year of see that down there at the bottom. 01:30:21
The revenue from water sales is approximately 211,000 less than in FY23. This is due to the fact that before we were kind of over 01:30:27
budgeting that amount because we were doing that minimum required amount instead of basing it on usage. So now that it's lower, 01:30:33
that's the decrease you're seeing there. 01:30:40
This will. 01:30:48
Mean that we do have to budget. 01:30:51
The offset to that, which is that take your pay fee and we'll show that on the expense side next. 01:30:53
And So what did decrease here? Is that billing adjustment revenue true up? 01:30:59
That used to be a negative if you see that third line from the bottom. As far as the line items, though, that used to be a large 01:31:05
negative to revenue. 01:31:08
So it's kind of like an expense. So instead I want to show it to you on the expense side and here you see that take your pay fee, 01:31:12
that's the offset there. 01:31:15
Same as every year, finance will reconcile actual water purchases and revenues to actual costs and any adjustments will still 01:31:20
happen at the year. So we will still have that true. We're just not budgeting for it already. I just want to show you expenses and 01:31:25
showing that spread on revenues instead of budgeting and true. 01:31:30
Moving on to the expense like these. 01:31:36
And so here are those expenses we talked about these, the 6.5 includes what we went through earlier of the water expenses, the HW, 01:31:41
a water plant operation expenses and the agency fees and costs. 01:31:48
They are 22 K over prior budget. 01:31:57
And. 01:32:01
When compared to fiscal year 22, expenses are 1.2 million higher. 01:32:03
Primarily due to the water plant increase in expenses of 636 K. 01:32:06
Which is mostly for personnel increases. 01:32:13
The projected penalty of 212 that we were talking about which is that ticker pigs you'll see now added when it was not in prior 01:32:16
year. 01:32:20
And. 01:32:25
Increases in other fixed costs. 01:32:27
This is offset by United's decrease in their fixed costs. That decrease is 427 K. 01:32:30
That's why you see such a small increase from prior year. 01:32:38
Ohh, this budget is presented to you for your consideration approval. Please let me know of any questions you may have. 01:32:50
Is that a penalty that we get for not taking the? 01:32:58
Allocations. 01:33:03
Yeah. So would it be cheaper on us if we took the allocation? 01:33:06
Yes. 01:33:10
Yeah. So that fee we get penalized, it's $363 an acre foot. 01:33:12
There's a lot that we do not take. 01:33:16
So what's the reason why? I mean, are we just not good at conserving water? Everybody would be penalized for it. So I mean 01:33:19
conserving water and being monetarily. 01:33:24
Yeah, I mean we are, but it demands have been really low the last few years. 01:33:31
But we kind of just debate demands going up. 01:33:37
With the rollback of the level 2 to level one with the range, we're just kind of expecting demands to go up for sure for sure, so. 01:33:40
To say that the the way the United budget builds out in there. 01:33:50
If we didn't pay the taker pay piece of it. 01:33:55
It would get lumped into your fixed cost. What it's intended to do is make sure the OH system is funded 100%. Is that a fair? 01:34:00
Yeah, it's a double whammy because. 01:34:08
Golden in the operating goal would use your total allocation, because when you don't, you're also. If you're supplementing with, 01:34:12
tagging is paying even more. 01:34:17
Use the absolute most amount of the cheapest water and then not leave anything on the table. And that's really operationally the 01:34:23
goal. And they're going to get better at that sort of monitoring like keep in mind. 01:34:28
Then we have a project in Brian test on it for low flow pumps, so. 01:34:34
So to touch on that, if we can increase our groundwater, take we can eliminate the high, the high cost of tigers and then maximize 01:34:39
our groundwater too. I think that was disgusting. One of our previous meetings might have been the first session. 01:34:45
And pretty simple project. Not real pricey, but something can get done pretty quick. 01:34:54
Just in the background, you know, ask you through the numbers already, but yes. 01:35:00
We put the slide in just to kind of put it in context. 01:35:05
With the city's costs are because the other agencies you're looking you're saying? 01:35:08
What? What is the cost for the city when you provide the administrative, the overhead and all those things? Just pure salaries is 01:35:12
about 90% of the overall budget. Then you add in salaries with all of our. 01:35:18
Oregon House fees vehicles. 01:35:25
Which is probably other other agencies you realize you're. 01:35:30
Majority of your colleges in your your water, your chemicals, right, whatever. 01:35:33
The overall city overhead costs are for reason. 01:35:37
Legitimate before mentioned that one of the cost effective waysons. 01:35:41
Plants remove fluoride. 01:35:46
And that would save us money. Do we know how much that would save us? 01:35:49
I mean, it's around $10,000 a year that we spent on Florida. 01:35:53
Anybody else? 01:36:03
Question I'm just because I'm the old guy has been around here in a while I I just. 01:36:07
The previous budgets used to have a whole lot of notes. 01:36:13
That were included in there as far as how certain numbers for different agencies were arrived at. 01:36:17
I would just request that they even if it's an attachment, I like this format easy to go through. 01:36:25
But it's there to be memorialized with a lot of money, so those are actually directly out of the JPA agreement or defined all 01:36:30
those things. So it's but what happened? 01:36:35
Well, the actually the outcome of some of those was from hosting agreement, what was called the cost allocation and realignment. 01:36:42
Was one of the amendments. Yeah, yeah, it's just. But yeah, I don't know, just for. 01:36:50
Unfortunately for the Beach District, there's still, there's some old people around there that want to make sure that what led to 01:36:56
that and it's just easier for me to point to it and say hey. 01:37:00
It's also going to be done. 01:37:05
If there's an easier way when you're saying memorialize, I guess I want to give you the confidence memorial. Ohh yeah, because it 01:37:08
is part of the right the JPA group. See broken down. It just talked about how different. 01:37:14
How the city, what city pay, what's beach district, what other folks paid on a percentage basis, and how fixed costs were applied 01:37:20
to each agency. And it it just it was. 01:37:24
In there. But you are, you're right. I mean, there was a formal agreement written for it, yeah. 01:37:29
Yeah. 01:37:34
We need some data. 01:37:35
We have, we have. 01:37:40
That will check me on this. Yeah. You know exactly what you're referring to. Yeah, I mean, maybe if it's just an attachment to the 01:37:43
back of them, when we approve them, it just says, you know, hey, these, these numbers are right. But would be allocated based on 01:37:48
the phone and it was a short kind of short. 01:37:52
That way, I say, I did my job. I told Sarah. I checked him out. 01:37:58
Question on the membrane replacement project and depreciation expenses. Is the risk, is there a reason there's no dollar amount on 01:38:03
those line items? 01:38:07
I believe half the capital cost in general were not included in this budget because we do want to bring that to you separately at 01:38:11
another time. I believe there's a plan that's going to be in place of study to be done. 01:38:17
And once that consultant lets us know what projects are priority, then we'll come back. OK, That makes sense. Thanks. 01:38:22
Anything else? 01:38:30
Good job, Ashley. 01:38:33
Because real quick, I just want to thank Ashley and Luke are the Finance Department, it's been a team effort in the Beach district 01:38:36
as well. Mr. Watkins, you know we're excited to bring the budget on time this year. So just wanted to thank the Finance Department 01:38:40
to help you all mentioned that this. 01:38:45
Which is not traditionally been delivered. 01:38:50
Miss Martinez, you said we're gonna get on time and and yeah. 01:38:55
Very generous with the amount of time. 01:39:00
They spent less and we were both new. 01:39:01
Well, congratulations. Thank you so much. Good work. That's awesome. 01:39:04
OK, so we have a recommendation to review and adopt the proposed FY23 24H WA operating budget. 01:39:10
And the proposed fixed variable water rate components that emotion. 01:39:17
Motion to Approve second for the 2nd. 01:39:22
All in favor? Aye. All opposed. Hearing None. Motion passes unanimously. Thank you. 01:39:27
Next slide of agency members reports comments and requests for future agenda items. Anything. 01:39:34
Support comment. 01:39:41
Yes, I just want to make one comment. I just want to thank the city staff that's here today. It's, it's really. 01:39:42
Refreshing as a member agency, the leadership that's provided the confidence and the ability to. 01:39:49
When we ask the question, are we getting? 01:39:55
Responses. 01:39:57
Of people that are doing their homework and it's really refreshing process to be here today and I just want to compliment you all. 01:39:59
Thank you. 01:40:02
Yes. 01:40:07
I like this. 01:40:09
Boardroom. 01:40:10
Environment too. I think it just lends to more discussion of. 01:40:12
Speaking from the diocese. 01:40:15
I really like it for this strategic session. Yeah, whatever. Yeah, totally up to this board. There's no harm. 01:40:18
I'll look towards Georgiana, is it? Yeah. 01:40:25
It's harder to come down here than this is the council chambers. We were just having some issues with the Wi-Fi. 01:40:28
We pulled it off. They were just like keep it short because the school board meeting is starting, but other than that? 01:40:37
There's no. 01:40:45
That's what I thought. Yeah. 01:40:47
Very good. So if there are no member reports, comments, request for future agenda items, I'll go ahead and adjourn the meeting. 01:40:51
By the time is. 01:40:59
539 Wow. And our next meeting is scheduled for Monday, July 17th at 4:00 PM. 01:41:02
Thank you everyone. Thank you. 01:41:08
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