Transcript

Good afternoon. Welcome to the closed session portion of the meeting. I'm calling this meeting to order. The time is now 3:15 PM 00:00:01
for the water agency meeting. 00:00:07
Madam Clerk, can you please take roll? 00:00:13
Member Martinez present. 00:00:17
My chair McQueen Legend and Chair Le Beau here. Let the record reflect that member Bouchard and Member Hernandez are currently 00:00:19
absent. 00:00:24
We will now hear public comments. You will have 3 minutes to provide your comments. Madam Clerk, does anyone have a public 00:00:30
comment? 00:00:32
No public comments. 00:00:36
Mr. Agency Attorney, can you please read the closed session item into the record? 00:00:38
Thank you, Chairman Le Beau. We do have one matter that we're bringing to closed session and that is pursuant to Government Code 00:00:43
section 54956.9, subdivision D2, and that is for anticipated litigation and the facts and circumstances surrounding that 00:00:49
anticipated litigation. 00:00:56
Are set forth on the publicly available agenda at the conclusion of the closed session and right when we start the general 00:01:03
meeting. 00:01:07
To the extent there is any reportable action, I will report that out. Thank you, counsel. Do any agency members have any conflicts 00:01:12
to disclose for the listed closed session agenda item? 00:01:17
Hearing none, we will recess the closed session. The time is now 3:20 PM. 00:01:23
I'm calling this meeting to order. The time is now 4:05 PM. 00:45:55
Madam Clerk, can you please take A roll? 00:46:02
Member Hernandez. 00:46:06
Present member Martinez. 00:46:07
Present Vice Chair McQueen Legend. 00:46:11
And Chair Le Beau present, please let the record reflect that Member Bouchard is absent. 00:46:14
Thank you. We will now hear public comments. Comments are limited to three minutes. Madam Clerk, does anyone have a public 00:46:20
comment? 00:46:23
No public comments. 00:46:28
Thank you. Miss Agency Attorney, can you please provide the closed session report? 00:46:29
Thank you. 00:46:36
Chairman Le Beau yes, there is one reportable action taken in the closed session and that was to extend the tolling agreement with 00:46:37
respect to the anticipated litigation that was set out in the agenda and to authorize the Executive Director to sign that 00:46:43
agreement. The vote was 4 to 0. 00:46:50
Thank you. 00:46:57
Will now consider the items on the Consent Calendar, which will be enacted in one motion unless an agency member has a request to 00:46:59
remove an item for discussion. 00:47:03
May I have a motion and 2nd to approve our consent calendar? 00:47:07
Move to approve 2nd. 00:47:14
Thank you, Madam Clerk, can you please take a vote? 00:47:17
All in favor, aye. All opposed. 00:47:21
Hearing none, motion passes unanimously. 00:47:24
Thank you. 00:47:28
We'll now turn to our business items on the agenda. The first matter is our PHW A5 year operational audit. Will staff please 00:47:29
present our report? 00:47:33
Yeah. Thank you, Terry LeBeau. And good afternoon, PHWA Board. 00:47:39
The item before you is the five year operational audit in the JPA. It calls out for the operator PHWA, which is the City of Port 00:47:43
Hueneme to do an operational audit every five years. So we just completed that. We did bring in a consultant MKN and they they 00:47:50
conducted the audit. They're actually on the line now and they're going to present the findings and the recommendations that were 00:47:57
found in the audit. 00:48:03
So I believe Mr. Ryan Gallagher is on the line. 00:48:11
He is on the line. Yes, I'm here, Dennis. 00:48:14
Can you hear me? 00:48:19
Yes. 00:48:21
All right, First off, First off, I'll have to apologize. My wife is actually going to the hospital right now. She's going to give 00:48:22
birth to our 4th baby. So I appreciate you allowing me to be on here and she might be calling any minute. So very exciting news. 00:48:29
And this is a brief presentation so I can run through this very quick. 00:48:35
Can we pull the slides up or are those available for for everyone? 00:48:42
I believe we allowed you to share the screen, but if you want I can pull them up. 00:48:48
If you can, that'd be great. So I can hop in the car as soon as I get off. So I think he's driving to the hospital. 00:48:52
Her mom's actually coming to pick me up right now. But I'm sorry, I did. I was seeing two things at once. I didn't catch that. 00:49:00
Give me one second, OK? 00:49:04
As she's pulling that up, I'll give a brief background. So my name is Ryan Gallagher. I'm the principal with MKN, got 20 years 00:49:09
experience. I've actually been doing work for PHWA and several of its member agencies for probably about 15 years. My experience 00:49:15
at the Brackish water facility goes back to the EDR replacement over 10 years ago. So I've done several projects. They're very 00:49:21
familiar with the site. You can move to the second slide now. 00:49:27
So as Dennis mentioned, really the Nexus for this operational audit is the JPA agreement. And per that agreement, these are 00:49:38
required to be done every five years. And really the main objective is just to ensure that there is oversight from a third party 00:49:44
with regards to the maintenance and operation, mainly to maximize useful life. Although as you probably saw in the report, we had 00:49:49
the opportunity to to look at not just maximizing useful life, but looking at optimizations as well. So it's a really useful 00:49:55
report. 00:50:01
And then as it states there, the last audit was done in March 2016. So a little bit more than five years, but but still we're 00:50:07
still following along that process. As far as summary of findings, lots of good news. The 2016 recommendations have mainly been 00:50:14
addressed or in progress. So that that was definitely good news to see that the 2019 facility master plan laid out a pretty 00:50:22
extensive list at that time. There was a condition assessment completed and and various O&M and CIP projects laid out. 00:50:30
Good news is that Dennis and his team has been able to progress a lot of the O&M projects. I put a couple of photos here. The top 00:50:38
photos are actually shown from the operate, I'm sorry, the condition assessment done in 2019 and you can see the photos on the 00:50:43
bottom. 00:50:48
Mainly a lot of the corrosion and deteriorated condition of the chemical systems and the support structures. 00:50:54
And very hazardous. And so by getting rid of that, they both increased operator safety as well as saved PHWA operating costs. The 00:51:33
other item that wouldn't be pictured there would be the low flow pump. This is a really great project, a low flow pump which is 00:51:40
in, I believe the parts have been ordered. It should be finished up shortly. This is going to allow the operations team to operate 00:51:47
off PHWA water in lieu of more costly imported Kayakus water during low demand periods. 00:51:55
This was a project identified in the 2019 master plan and so we were very happy to see that that is moving forward. And then most 00:52:03
importantly, all the regulatory compliance at the site is being met. And so that's that's again another, another win for the team 00:52:10
there at the plant. As noted here in a few bullets there, there are some larger CIP projects that do remain and those as you move 00:52:17
to the next slide, you can see are incorporated into and this is the final slide into the proposed CIP. 00:52:24
The way that this was developed is going back through the 2019 master plan and then working with staff to eliminate projects that 00:52:32
had been completed or identify projects that are that are needed that that have come up since the 2019 master plan. And then to 00:52:40
prioritize those projects, pushing back the ones that we could as far back as we as we can to ensure that we maximize the life of 00:52:48
that investment. And then there is an order to these, for example, doing the United Bypass. 00:52:56
Which where we are now with the continued rise of imported water and even groundwater. 00:53:39
And the limitations on our allocation for PHWA, really maximizing the amount of water that we aren't putting in to the brine line 00:53:45
is going to have a operational cost benefit for the agency. 00:53:51
And so we're excited to to finalize this report and share it with the board. 00:53:58
And that is the end. 00:54:05
Thank you. Thank you for the report and congratulations. Thank you. 00:54:08
Any questions? 00:54:18
Does the agency have any questions for staff? 00:54:19
I don't care. 00:54:23
Any comments? 00:54:26
Do we have any public comment? 00:54:29
No public comments. 00:54:31
We have a recommendation to receive and file the five year operational audit report may have a motion and a second. 00:54:34
2nd. 00:54:43
Madam Clerk, can you please take a vote? All in favor? Aye, All opposed. Hearing none. Motion passes unanimously. 00:54:45
Thank you. Go have your baby. Yeah, Thank you. 00:54:53
Thank you. 00:54:57
Bye. 00:54:58
Our next agenda item is the PHW, a operating budget and capital projects CIP for fiscal year 20/25/2020. Sorry, 2024-2025. Will 00:55:00
staff please present the report? 00:55:06
Good afternoon. 00:55:14
Member, committee members and staff members of the public. Tonight we'll be presenting the budget for the water for Wanami Water 00:55:16
Agency for fiscal year 2024-2025 and typically on an annual basis. We present this budget after we get the budget from United 00:55:25
Water and Callaway so we're able to determine the water rates that are projected to be charged the following year. 00:55:33
The agency operates as a business enterprise, therefore charging. 00:55:43
And trying to recover all of the costs that are incurred this year. You'll note that for the first time we're in. 00:55:49
Including capital improvement projects into the budget that had not been done in the past. 00:55:55
And then those costs are being passed through via the fixed rate, so I'll walk through that. 00:56:01
The projected revenue for the next for fiscal year 2425 is $7.5 million. And you'll see the rates for United Water Agency went up, 00:56:09
especially the fixed rate. Their fixed rate also includes capital projects. The fixed rate rate went up to $110.00 per month. That 00:56:16
was a pretty significant increase. Again, most of it because of the CIP that's built into that rate and that increased $54,000 per 00:56:23
month. 00:56:31
Variable rate also went up slightly at 474. It was 363 before. 00:56:39
The pump rate as well 367 from 277, same thing with Calle was we had a slight increase 18,637 is the fixed rate up about $1800 per 00:56:47
month and then the variable rate also went up about $82.00 a month. I wanted to make note on the projected water usage that were 00:56:58
obviously it's a projection. We did include the brine loss of 465, it's in included in that. 00:57:09
3679 figure and then we have the irrigation at 40, so that did not change from the prior year. 00:57:21
Projected expenditures, so we have a balanced budget at $7.5 million the. 00:57:33
Water purchases at 4.8 and then operating maintenance cost of 2.1. And then again, we do have $460,000 of capital and then the 00:57:42
$50,000 reserve that we put aside every year. 00:57:49
The reserve balance that we have, we have monies in there for the. 00:58:00
Membrane replacement. So we have $172,000 designated for the membrane replacement and then the remainder is 768,000 I think is the 00:58:08
balance is the total is 758, which includes the membrane replacement. So that is the reserve that's sitting on the books for PHWA. 00:58:20
And here's just a summary of the budget. So comparison to what was approved for this fiscal year versus what we're proposing for 00:58:36
next year. So you'll it is an increase of a million a little bit over $1,000,000. And that's really primarily due to the increases 00:58:44
in both mostly fixed cost and some of the variable cost. We were able to balance that. And as far as the ONM, the operating and 00:58:52
maintenance, there were some reductions in operating costs that help offset. 00:58:59
And then we were able to include the capital projects in the budget. 00:59:08
And here's the list of projects, which is are the same projects that were just presented earlier. There is a slight difference 00:59:15
$10,000. We have 460,000 in our number. The difference is the first project, the hydraulic analysis, it looks like we're going to 00:59:23
need $25,000. We included 15,000. If the board approves the 25, it would just be part of the true up at the end of the year 00:59:30
because what we do at the end of the year, any over and under we do a reconciliation. 00:59:38
And then the difference is allocated to the members. We could do that or we could. 00:59:46
Bring it back for an adjustment because it looks like the number is 25,000 versus the $15,000. 00:59:53
And with that, this is the budget that we're proposing presented for your consideration and approval. Just wanted to make a couple 01:00:06
points in regards to the audit. When we presented the audit for PHWA, we mentioned that we were in the process of selecting a 01:00:13
different a new firm just because it's common practice to change audit forms every four to five years. We're moving forward with 01:00:19
that process. We're going to issue an RFP and we'll we should have a proposal when we return back from August, sometime in 01:00:25
September. 01:00:32
For this year, we're going to do an extension with the existing firm so they can start the audit. We don't want to delay the audit 01:00:39
for fiscal year 24. So we're going to extend the existing firm for one year. And then again we'll present the. Once we get the RFP 01:00:45
results back, we'll come back to the board with our recommendation. 01:00:51
Any questions? 01:00:59
Does the agency have any questions for staff? 01:01:04
Clarifying question. 01:01:11
Thank you both for the report and. 01:01:13
And the budget? 01:01:17
So our costs are going up $1,000,000 is what we're basically looking at. 01:01:18
Increase, is that going to be addressed through fee, a fee increase? It's already, yes. So what we do is we incorporate those 01:01:29
increases into the budget and then those are being passed through through both the variable and the fixed fee. And so we basically 01:01:35
are. 01:01:40
Calculating or projecting a balanced budget, so those fees are being passed through in the same fiscal year. 01:01:47
So how are we taking this to the? 01:01:54
To our customers, how are we going to be introducing this to our customers? 01:01:58
Is that for another discussion? 01:02:01
As far as notifying. 01:02:08
The customers about a fee increase. 01:02:10
Are we? 01:02:15
Expected fee increase as a result of. 01:02:16
Of the. 01:02:19
Budget increase, the variable rates are changing and so are the fixed rates. So basically. 01:02:20
This is. 01:02:29
The way that, that it's been managed in the past is we, we include those rates with the, the with the notification when we start 01:02:32
the billing. And then with PHWA it's based on estimates. So again, it's if, if the cost come in lower or higher, there's a 01:02:39
reconciliation that gets completed at the end of the fiscal year and then the members receive either a credit and or a charge if 01:02:45
the rates are high. 01:02:52
And the timing of that, when does that take place? 01:02:58
After we closed the books, so it would be this is budget for 2025. So the reconciliation wouldn't be done until sometime and 01:03:01
really August after we know for sure that those are the costs. So August usually they get that invoice with the true up, we call 01:03:07
it the true up sometime in September or even October. 01:03:13
Do you have any other questions? 01:03:24
OK, are there any public comments regarding this item? 01:03:27
No public comments. 01:03:30
Thank you. 01:03:32
Our recommendations to review and adopt the proposed 2024-2025 PHWA operating and capital improvement budget and the proposed 01:03:33
fixed and variable water rate components may have a motion in a second. 01:03:39
Move to approve. 01:03:48
2nd. 01:03:51
I'm clerk, can you please take a vote? 01:03:55
Aye. 01:03:59
All in favor, aye. All opposed. 01:04:10
Hearing none, motion passes. 01:04:14
Thank you. Thank you. 01:04:18
Do any agency members have any reports, comments or requests for future agenda items? 01:04:23
I have none. 01:04:29
OK. 01:04:34
Then that will conclude today's meeting. The next regular meeting is scheduled for Monday, July 15th, 2024 at 4:00 PM. I'd like to 01:04:36
adjourn the meeting. The time is now 424 PM. 01:04:42
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Transcript

Good afternoon. Welcome to the closed session portion of the meeting. I'm calling this meeting to order. The time is now 3:15 PM 00:00:01
for the water agency meeting. 00:00:07
Madam Clerk, can you please take roll? 00:00:13
Member Martinez present. 00:00:17
My chair McQueen Legend and Chair Le Beau here. Let the record reflect that member Bouchard and Member Hernandez are currently 00:00:19
absent. 00:00:24
We will now hear public comments. You will have 3 minutes to provide your comments. Madam Clerk, does anyone have a public 00:00:30
comment? 00:00:32
No public comments. 00:00:36
Mr. Agency Attorney, can you please read the closed session item into the record? 00:00:38
Thank you, Chairman Le Beau. We do have one matter that we're bringing to closed session and that is pursuant to Government Code 00:00:43
section 54956.9, subdivision D2, and that is for anticipated litigation and the facts and circumstances surrounding that 00:00:49
anticipated litigation. 00:00:56
Are set forth on the publicly available agenda at the conclusion of the closed session and right when we start the general 00:01:03
meeting. 00:01:07
To the extent there is any reportable action, I will report that out. Thank you, counsel. Do any agency members have any conflicts 00:01:12
to disclose for the listed closed session agenda item? 00:01:17
Hearing none, we will recess the closed session. The time is now 3:20 PM. 00:01:23
I'm calling this meeting to order. The time is now 4:05 PM. 00:45:55
Madam Clerk, can you please take A roll? 00:46:02
Member Hernandez. 00:46:06
Present member Martinez. 00:46:07
Present Vice Chair McQueen Legend. 00:46:11
And Chair Le Beau present, please let the record reflect that Member Bouchard is absent. 00:46:14
Thank you. We will now hear public comments. Comments are limited to three minutes. Madam Clerk, does anyone have a public 00:46:20
comment? 00:46:23
No public comments. 00:46:28
Thank you. Miss Agency Attorney, can you please provide the closed session report? 00:46:29
Thank you. 00:46:36
Chairman Le Beau yes, there is one reportable action taken in the closed session and that was to extend the tolling agreement with 00:46:37
respect to the anticipated litigation that was set out in the agenda and to authorize the Executive Director to sign that 00:46:43
agreement. The vote was 4 to 0. 00:46:50
Thank you. 00:46:57
Will now consider the items on the Consent Calendar, which will be enacted in one motion unless an agency member has a request to 00:46:59
remove an item for discussion. 00:47:03
May I have a motion and 2nd to approve our consent calendar? 00:47:07
Move to approve 2nd. 00:47:14
Thank you, Madam Clerk, can you please take a vote? 00:47:17
All in favor, aye. All opposed. 00:47:21
Hearing none, motion passes unanimously. 00:47:24
Thank you. 00:47:28
We'll now turn to our business items on the agenda. The first matter is our PHW A5 year operational audit. Will staff please 00:47:29
present our report? 00:47:33
Yeah. Thank you, Terry LeBeau. And good afternoon, PHWA Board. 00:47:39
The item before you is the five year operational audit in the JPA. It calls out for the operator PHWA, which is the City of Port 00:47:43
Hueneme to do an operational audit every five years. So we just completed that. We did bring in a consultant MKN and they they 00:47:50
conducted the audit. They're actually on the line now and they're going to present the findings and the recommendations that were 00:47:57
found in the audit. 00:48:03
So I believe Mr. Ryan Gallagher is on the line. 00:48:11
He is on the line. Yes, I'm here, Dennis. 00:48:14
Can you hear me? 00:48:19
Yes. 00:48:21
All right, First off, First off, I'll have to apologize. My wife is actually going to the hospital right now. She's going to give 00:48:22
birth to our 4th baby. So I appreciate you allowing me to be on here and she might be calling any minute. So very exciting news. 00:48:29
And this is a brief presentation so I can run through this very quick. 00:48:35
Can we pull the slides up or are those available for for everyone? 00:48:42
I believe we allowed you to share the screen, but if you want I can pull them up. 00:48:48
If you can, that'd be great. So I can hop in the car as soon as I get off. So I think he's driving to the hospital. 00:48:52
Her mom's actually coming to pick me up right now. But I'm sorry, I did. I was seeing two things at once. I didn't catch that. 00:49:00
Give me one second, OK? 00:49:04
As she's pulling that up, I'll give a brief background. So my name is Ryan Gallagher. I'm the principal with MKN, got 20 years 00:49:09
experience. I've actually been doing work for PHWA and several of its member agencies for probably about 15 years. My experience 00:49:15
at the Brackish water facility goes back to the EDR replacement over 10 years ago. So I've done several projects. They're very 00:49:21
familiar with the site. You can move to the second slide now. 00:49:27
So as Dennis mentioned, really the Nexus for this operational audit is the JPA agreement. And per that agreement, these are 00:49:38
required to be done every five years. And really the main objective is just to ensure that there is oversight from a third party 00:49:44
with regards to the maintenance and operation, mainly to maximize useful life. Although as you probably saw in the report, we had 00:49:49
the opportunity to to look at not just maximizing useful life, but looking at optimizations as well. So it's a really useful 00:49:55
report. 00:50:01
And then as it states there, the last audit was done in March 2016. So a little bit more than five years, but but still we're 00:50:07
still following along that process. As far as summary of findings, lots of good news. The 2016 recommendations have mainly been 00:50:14
addressed or in progress. So that that was definitely good news to see that the 2019 facility master plan laid out a pretty 00:50:22
extensive list at that time. There was a condition assessment completed and and various O&M and CIP projects laid out. 00:50:30
Good news is that Dennis and his team has been able to progress a lot of the O&M projects. I put a couple of photos here. The top 00:50:38
photos are actually shown from the operate, I'm sorry, the condition assessment done in 2019 and you can see the photos on the 00:50:43
bottom. 00:50:48
Mainly a lot of the corrosion and deteriorated condition of the chemical systems and the support structures. 00:50:54
And very hazardous. And so by getting rid of that, they both increased operator safety as well as saved PHWA operating costs. The 00:51:33
other item that wouldn't be pictured there would be the low flow pump. This is a really great project, a low flow pump which is 00:51:40
in, I believe the parts have been ordered. It should be finished up shortly. This is going to allow the operations team to operate 00:51:47
off PHWA water in lieu of more costly imported Kayakus water during low demand periods. 00:51:55
This was a project identified in the 2019 master plan and so we were very happy to see that that is moving forward. And then most 00:52:03
importantly, all the regulatory compliance at the site is being met. And so that's that's again another, another win for the team 00:52:10
there at the plant. As noted here in a few bullets there, there are some larger CIP projects that do remain and those as you move 00:52:17
to the next slide, you can see are incorporated into and this is the final slide into the proposed CIP. 00:52:24
The way that this was developed is going back through the 2019 master plan and then working with staff to eliminate projects that 00:52:32
had been completed or identify projects that are that are needed that that have come up since the 2019 master plan. And then to 00:52:40
prioritize those projects, pushing back the ones that we could as far back as we as we can to ensure that we maximize the life of 00:52:48
that investment. And then there is an order to these, for example, doing the United Bypass. 00:52:56
Which where we are now with the continued rise of imported water and even groundwater. 00:53:39
And the limitations on our allocation for PHWA, really maximizing the amount of water that we aren't putting in to the brine line 00:53:45
is going to have a operational cost benefit for the agency. 00:53:51
And so we're excited to to finalize this report and share it with the board. 00:53:58
And that is the end. 00:54:05
Thank you. Thank you for the report and congratulations. Thank you. 00:54:08
Any questions? 00:54:18
Does the agency have any questions for staff? 00:54:19
I don't care. 00:54:23
Any comments? 00:54:26
Do we have any public comment? 00:54:29
No public comments. 00:54:31
We have a recommendation to receive and file the five year operational audit report may have a motion and a second. 00:54:34
2nd. 00:54:43
Madam Clerk, can you please take a vote? All in favor? Aye, All opposed. Hearing none. Motion passes unanimously. 00:54:45
Thank you. Go have your baby. Yeah, Thank you. 00:54:53
Thank you. 00:54:57
Bye. 00:54:58
Our next agenda item is the PHW, a operating budget and capital projects CIP for fiscal year 20/25/2020. Sorry, 2024-2025. Will 00:55:00
staff please present the report? 00:55:06
Good afternoon. 00:55:14
Member, committee members and staff members of the public. Tonight we'll be presenting the budget for the water for Wanami Water 00:55:16
Agency for fiscal year 2024-2025 and typically on an annual basis. We present this budget after we get the budget from United 00:55:25
Water and Callaway so we're able to determine the water rates that are projected to be charged the following year. 00:55:33
The agency operates as a business enterprise, therefore charging. 00:55:43
And trying to recover all of the costs that are incurred this year. You'll note that for the first time we're in. 00:55:49
Including capital improvement projects into the budget that had not been done in the past. 00:55:55
And then those costs are being passed through via the fixed rate, so I'll walk through that. 00:56:01
The projected revenue for the next for fiscal year 2425 is $7.5 million. And you'll see the rates for United Water Agency went up, 00:56:09
especially the fixed rate. Their fixed rate also includes capital projects. The fixed rate rate went up to $110.00 per month. That 00:56:16
was a pretty significant increase. Again, most of it because of the CIP that's built into that rate and that increased $54,000 per 00:56:23
month. 00:56:31
Variable rate also went up slightly at 474. It was 363 before. 00:56:39
The pump rate as well 367 from 277, same thing with Calle was we had a slight increase 18,637 is the fixed rate up about $1800 per 00:56:47
month and then the variable rate also went up about $82.00 a month. I wanted to make note on the projected water usage that were 00:56:58
obviously it's a projection. We did include the brine loss of 465, it's in included in that. 00:57:09
3679 figure and then we have the irrigation at 40, so that did not change from the prior year. 00:57:21
Projected expenditures, so we have a balanced budget at $7.5 million the. 00:57:33
Water purchases at 4.8 and then operating maintenance cost of 2.1. And then again, we do have $460,000 of capital and then the 00:57:42
$50,000 reserve that we put aside every year. 00:57:49
The reserve balance that we have, we have monies in there for the. 00:58:00
Membrane replacement. So we have $172,000 designated for the membrane replacement and then the remainder is 768,000 I think is the 00:58:08
balance is the total is 758, which includes the membrane replacement. So that is the reserve that's sitting on the books for PHWA. 00:58:20
And here's just a summary of the budget. So comparison to what was approved for this fiscal year versus what we're proposing for 00:58:36
next year. So you'll it is an increase of a million a little bit over $1,000,000. And that's really primarily due to the increases 00:58:44
in both mostly fixed cost and some of the variable cost. We were able to balance that. And as far as the ONM, the operating and 00:58:52
maintenance, there were some reductions in operating costs that help offset. 00:58:59
And then we were able to include the capital projects in the budget. 00:59:08
And here's the list of projects, which is are the same projects that were just presented earlier. There is a slight difference 00:59:15
$10,000. We have 460,000 in our number. The difference is the first project, the hydraulic analysis, it looks like we're going to 00:59:23
need $25,000. We included 15,000. If the board approves the 25, it would just be part of the true up at the end of the year 00:59:30
because what we do at the end of the year, any over and under we do a reconciliation. 00:59:38
And then the difference is allocated to the members. We could do that or we could. 00:59:46
Bring it back for an adjustment because it looks like the number is 25,000 versus the $15,000. 00:59:53
And with that, this is the budget that we're proposing presented for your consideration and approval. Just wanted to make a couple 01:00:06
points in regards to the audit. When we presented the audit for PHWA, we mentioned that we were in the process of selecting a 01:00:13
different a new firm just because it's common practice to change audit forms every four to five years. We're moving forward with 01:00:19
that process. We're going to issue an RFP and we'll we should have a proposal when we return back from August, sometime in 01:00:25
September. 01:00:32
For this year, we're going to do an extension with the existing firm so they can start the audit. We don't want to delay the audit 01:00:39
for fiscal year 24. So we're going to extend the existing firm for one year. And then again we'll present the. Once we get the RFP 01:00:45
results back, we'll come back to the board with our recommendation. 01:00:51
Any questions? 01:00:59
Does the agency have any questions for staff? 01:01:04
Clarifying question. 01:01:11
Thank you both for the report and. 01:01:13
And the budget? 01:01:17
So our costs are going up $1,000,000 is what we're basically looking at. 01:01:18
Increase, is that going to be addressed through fee, a fee increase? It's already, yes. So what we do is we incorporate those 01:01:29
increases into the budget and then those are being passed through through both the variable and the fixed fee. And so we basically 01:01:35
are. 01:01:40
Calculating or projecting a balanced budget, so those fees are being passed through in the same fiscal year. 01:01:47
So how are we taking this to the? 01:01:54
To our customers, how are we going to be introducing this to our customers? 01:01:58
Is that for another discussion? 01:02:01
As far as notifying. 01:02:08
The customers about a fee increase. 01:02:10
Are we? 01:02:15
Expected fee increase as a result of. 01:02:16
Of the. 01:02:19
Budget increase, the variable rates are changing and so are the fixed rates. So basically. 01:02:20
This is. 01:02:29
The way that, that it's been managed in the past is we, we include those rates with the, the with the notification when we start 01:02:32
the billing. And then with PHWA it's based on estimates. So again, it's if, if the cost come in lower or higher, there's a 01:02:39
reconciliation that gets completed at the end of the fiscal year and then the members receive either a credit and or a charge if 01:02:45
the rates are high. 01:02:52
And the timing of that, when does that take place? 01:02:58
After we closed the books, so it would be this is budget for 2025. So the reconciliation wouldn't be done until sometime and 01:03:01
really August after we know for sure that those are the costs. So August usually they get that invoice with the true up, we call 01:03:07
it the true up sometime in September or even October. 01:03:13
Do you have any other questions? 01:03:24
OK, are there any public comments regarding this item? 01:03:27
No public comments. 01:03:30
Thank you. 01:03:32
Our recommendations to review and adopt the proposed 2024-2025 PHWA operating and capital improvement budget and the proposed 01:03:33
fixed and variable water rate components may have a motion in a second. 01:03:39
Move to approve. 01:03:48
2nd. 01:03:51
I'm clerk, can you please take a vote? 01:03:55
Aye. 01:03:59
All in favor, aye. All opposed. 01:04:10
Hearing none, motion passes. 01:04:14
Thank you. Thank you. 01:04:18
Do any agency members have any reports, comments or requests for future agenda items? 01:04:23
I have none. 01:04:29
OK. 01:04:34
Then that will conclude today's meeting. The next regular meeting is scheduled for Monday, July 15th, 2024 at 4:00 PM. I'd like to 01:04:36
adjourn the meeting. The time is now 424 PM. 01:04:42