No Bookmarks Exist.
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 |
* you need to log in to manage your favorites
* use Ctrl+F (Cmd+F on Mac) to search in document
Loading...
* use Ctrl+F (Cmd+F on Mac) to search in document
Loading...
* use Ctrl+F (Cmd+F on Mac) to search in document
Loading...
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 |