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 |