Meeting: Port Hueneme Water Agency Meeting

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CALL TO ORDER / FLAG SALUTE/ ROLL CALL
PUBLIC COMMENT
AGENDA APPROVAL FOR CITY COUNCIL
CONSENT CALENDAR
BUSINESS ITEMS
REPORTS AND COMMENTS
REQUEST FOR FUTURE AGENDA ITEMS
ADJOURNMENT

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Transcript

	Visio member laughs in.	00:00:15
	Vice Chair Thomas.	00:00:18
	Here and Chair Hernandez here.	00:00:19
	Thank you.	00:00:21
	Do we have any public comment?	00:00:23
	No public comments, OK.	00:00:25
	Let's go on to agenda approval for the water agency. May I have a motion and a second to approve the agenda?	00:00:26
	Move to approve second.	00:00:33
	All in favor.	00:00:35
	Aye, all opposed.	00:00:37
	Hearing none, motion passes unanimously.	00:00:39
	OK. We will now consider items on the consent calendar which will be enacted in one motion unless an agency member.	00:00:42
	Has a request to remove the item for discussion. May I have a motion in a second to approve our consent calendar?	00:00:48
	Move to approve the consent calendar items one minute.	00:00:55
	To register of disbursements and three monthly operational report.	00:01:00
	Thank you any second.	00:01:04
	2nd.	00:01:06
	Thank you.	00:01:08
	All in favor.	00:01:09
	Aye, all opposed.	00:01:11
	Hearing none, motion passes unanimously. Very good. Moving along.	00:01:12
	So our first business item is the Port Wine Me Water Agency audit report fiscal year 20/23/24.	00:01:16
	We have staff here. So staff, Are you ready to present the report?	00:01:24
	Yes, and I'll be introducing Ashley Chaparro our.	00:01:28
	Interim finance director.	00:01:32
	Ashley has served the city as our Assistant Finance Director for the last several years and with the.	00:01:35
	Our finance director moving on to VCTC a couple months back, Ashley was willing to step into the.	00:01:42
	Interim role. And so I'm going to hand it off to her to give us the audit report.	00:01:49
	For the PHWA.	00:01:55
	Thank you and welcome, Ashley.	00:01:57
	Of the actual accurate report for you.	00:02:10
	But we're going to go over highlights, major changes, what to?	00:02:13
	What are the major changes?	00:02:17
	So looking at the aquifer, the audit was done by Brown Armstrong, certified public accounting firm.	00:02:21
	In accordance with gap standards.	00:02:28
	It is always annually with every audit management's responsibility to prepare and give a fair representation.	00:02:31
	Of what's going to appear in the financial statements that's on us every month to go ahead and.	00:02:39
	Follow all City and PHW policies with all of our purchasing.	00:02:44
	And the auditor checks us on everything, and it's their role to obtain a reasonable assurance about.	00:02:49
	Whether the statements that we're providing them are free from material misstatements.	00:02:55
	We are very happy to report that that was the case. The audit opinion shows that.	00:03:00
	Our financial statements fairly represent in all material respects the financial position of the Agency as of fiscal year ending	00:03:04
	June 30th, 2024.	00:03:08
	Every year the PHWA does face an annual operating loss, so you will see here a comparison of the FY23 figures to the FY24 figures.	00:03:17
	The only major change there is that net loss of 472K.	00:03:28
	That amounts pretty typical. You see 433 the year before. This is always approximately equal to our depreciation for the year.	00:03:34
	That's because you'll see that net position there of 13,000,012 million of that is made-up of PWA assets, the plant itself all.	00:03:42
	All of the pipe.	00:03:50
	Lines and things.	00:03:52
	So those assets depreciate annually according to our schedule.	00:03:54
	That amount I said was approximately depreciation because it is net depreciation. We also add every time we do a major repair, we	00:03:58
	will add value to our assets there.	00:04:03
	Now I'll take a look at our operating revenues and expenses. So note that this does not include the note payable or CIP. We're	00:04:11
	specifically looking at operating here.	00:04:16
	I just wanted to highlight the major changes, which would be the billing adjustment. You note there the sign changed from in 2023	00:04:22
	it shows a negative and in 2024 it shows a positive. That is due to our annual true up.	00:04:28
	So as you know, all the member agencies, every year we do give you a true up to make sure that we're covering all of the expenses	00:04:35
	and charging everyone appropriately every year.	00:04:39
	This did change. Typically we're always giving a credit back to member agencies with this troop calculation.	00:04:45
	And that is for several reasons, that it changed to the opposing sign. And this was the first year in a while that the entities	00:04:52
	did owe PHW a.	00:04:56
	In the past, our budget was always a little slightly inflated to give us room and we've been trying to really annually drill down	00:05:01
	and get our budget as realistically to our.	00:05:07
	Actuals as possible of what we're expecting. So by doing that, we didn't give ourselves as much wiggle room to pay back the	00:05:12
	entities at the end of the year in our attempt to try to get that as close to realistic figures.	00:05:19
	So you will have seen that the budget did go down.	00:05:25
	In addition.	00:05:30
	Usage of water overall did decrease.	00:05:33
	However, there were other expenses that increased that didn't give us that savings, even though we use less water.	00:05:37
	The water amount you'll see on the expense side for water purchases did not go down much.	00:05:44
	And that was for a couple reasons.	00:05:49
	So moving on to the expense side, as I mentioned water.	00:05:51
	Even though usage was down, the United Taker pay did go up.	00:05:55
	And we paid that as well as the OFT aqueduct charges located at the bottom there.	00:05:59
	Those went up as well.	00:06:05
	Actually, if I could just interrupt real quick just for the.	00:06:07
	Board's benefit? She's referring to page 10 in your staff report.	00:06:11
	Thank you.	00:06:17
	So those were shown expenses that did go up that did affect the true up.	00:06:19
	In addition, the other change was the water plant operating expenses increased.	00:06:23
	That was due to overall employee costs and the pension costs that were passed on as previously noted in a prior audit that we will	00:06:28
	continue to pass those on to the agencies annually.	00:06:33
	The other third increase in operating expenses was.	00:06:39
	We did have to cover the operational audit this past fiscal year, so that was another increased expense.	00:06:43
	So overall, again revenues over expenses due to the true openness capturing those total costs, the only loss there mentioned is	00:06:53
	that same net depreciation of capital assets.	00:06:58
	Can you go back to the last slide?	00:07:07
	Sure.	00:07:08
	So insurance looked like it went up 17,000.	00:07:10
	What was the reason for that?	00:07:14
	Insurance is pretty volatile and we're always getting an increase back, an increase, a slight increase annually from that	00:07:17
	insurance cost.	00:07:21
	OK, so we'll just.	00:07:25
	It was a regular cost increase from our insurance provider.	00:07:26
	I can note there too and we've already been notified that there will be another increase for this year from our insurance	00:07:32
	providers. So that is.	00:07:36
	Sort of.	00:07:40
	Just just like everybody with their home insurance right now is seeing their their.	00:07:41
	Premiums increasing the city's also.	00:07:46
	Cities and agencies are also seeing those things.	00:07:49
	Seems to be the trend.	00:07:52
	Thank you.	00:07:54
	Another change that I did want to point out that we haven't recently had to reference regarding the ACT for in our financials is	00:07:59
	our cash flow for the PHWA fund.	00:08:04
	The agency as a whole.	00:08:09
	I did want to show you overall trend over the years here.	00:08:10
	And you'll notice that we did have a pretty good cash flow. This is the amount literally in our checking account where we're	00:08:14
	paying our checks and payroll every month.	00:08:18
	And we did have a nice cushion there for a while, which is why we've never had to talk about this.	00:08:23
	But recently this last fiscal year, we did find that our cash flow was pretty low.	00:08:28
	The reason I wanted to bring this up is because we will be coming to you with the budget soon at the next meeting and we will be	00:08:33
	talking about how we are going to start increasing our CIP costs annually.	00:08:39
	CIP is something we just haven't had a major plan and budget for for quite some time. We've been doing small maintenance projects	00:08:44
	throughout the year, but nothing has extensive but what we're going to propose with this budget.	00:08:50
	And with that could come very large costs.	00:08:56
	At varying times.	00:08:59
	Such as upfront costs at the beginning of the fiscal year related to large design plans with our consultants.	00:09:01
	And so we need to make sure that we have the cash in the bank to be able to pay for some larger incurred costs upfront moving	00:09:06
	forward now that we're going to start the CIP plan.	00:09:11
	I have a question. I I do have a question and that may have been the case in 20/22/23.	00:09:16
	Because it looks like that it's exponentially higher.	00:09:23
	Than it was last year. So can you tell us a little bit about what happened?	00:09:26
	So we've had a cushion.	00:09:30
	In our cash flow, because we always have a small CIP reserve, we put away 50K annually from all the entities, which is another	00:09:33
	item open for discussion whether that amount is fair and something we should continue to do or revisit.	00:09:41
	So that 50K, you know, gets built up in a reserve.	00:09:50
	Which is why we have some money to work with here.	00:09:54
	But when we build our budget, we then divide that according to the entities and give you your monthly budget for that upfront,	00:09:57
	right? And we say, OK, this is how much.	00:10:01
	Your fixed cost is going to be.	00:10:06
	We're going to divide that through the year and charge you every month for that.	00:10:08
	So sometimes there's a timing issue for when we're receiving the checks from all the entities.	00:10:11
	Versus what we're paying out operationally monthly?	00:10:16
	Before CIP, it was pretty standard stuff. We're paying every month the amount of accounts payable for our utilities, for our water	00:10:19
	bills, for our payroll. Now that we're going to start bigger projects, we're anticipating larger costs at varying times.	00:10:27
	And that's what worries me about the cash flow that we want to have a little bit built up in there as you're seeing we had in	00:10:34
	prior years.	00:10:37
	But now that we're starting to payout that design, payout these bigger costs, we're seeing a little less cash flow in the bank.	00:10:40
	So I want to be prepared and make sure that we have a cushion up front the beginning of the year and not have to wait until we get	00:10:48
	a couple months worth back from the entities to cover these larger payments.	00:10:53
	So that's something we'll bring up with you and make suggestions to you all at budget time.	00:10:59
	Great. Thank you.	00:11:03
	Mm-hmm.	00:11:04
	So those were my larger items. I wanted to point out from the aquifer for you all the major changes. I would argue so.	00:11:08
	The action steps for tonight would be to receive and file the PHWA.	00:11:16
	Annual Comprehensive Financial Report for the fiscal year ended June 30th, 2024.	00:11:20
	Thank you.	00:11:26
	I'm sorry, I'm so sorry. One more.	00:11:27
	Apologies, there are future action items that I failed to mention. So we currently are undergoing an RFP for audit services.	00:11:29
	We would like to present the proposed audit firm to you all.	00:11:39
	In the near future.	00:11:43
	The current audit firm has been in place for over 20 years. We have no problems with them. They're really great. However,	00:11:45
	according to.	00:11:48
	According to the California State Controller recommendations, we really should be switching out our auditor much more frequently	00:11:53
	than that.	00:11:56
	It should be about every six years.	00:11:59
	So obviously we're well past that. We do have our RFP out now. We are getting a lot of people asking questions thus far. That's	00:12:02
	the point of the process in which we are in. We haven't received bids yet, but we do have some time still.	00:12:07
	For that. So we'll be responding to questions, reaching out with all these prospective bidders and hope to get a new audit firm in	00:12:13
	place.	00:12:17
	So that we can meet transparency needs and.	00:12:21
	That kind of rotation.	00:12:24
	So that's a future item. In addition to that, I mentioned the budget. So we will be hoping to present that to you all in the June	00:12:26
	meeting, which I have as the June 16th pH D.	00:12:31
	Meeting that, we will be presenting that budget and like I said something about cash flow and that CIP plan that we have in place.	00:12:37
	All right, very good. Yes, I was reading.	00:12:46
	The staff report and I saw that.	00:12:48
	The audit.	00:12:50
	Company we use has been in place for 20 years and I went whoa. And then the next statement says, well, we're going out for an RFP.	00:12:51
	So that's good to know.	00:12:57
	So we'd went out for an RFP previously. We've tried, but last year we didn't get any bidders other than the current audit firm.	00:12:59
	I believe that was because we didn't mention that we're such a small entity that we are open to doing a fully virtual audit fully	00:13:07
	online. That is what we've been doing with our current auditors. So this time I really highlighted that in hopes that we do get a	00:13:12
	lot more bidders.	00:13:17
	I know we're really small so I feel like that was part of it and I'm hoping that virtual aspect of it will get us a lot more bits.	00:13:22
	OK. I'll open it up to the board. Are there any questions from the board?	00:13:30
	OK, very good. Thank you so much. Thank you. And this is a receive and file, so no action.	00:13:38
	Required, yes, receive and file. And then like Ashley said, we will bring back some recommendations to sort of plan for CIP and	00:13:43
	how we'll work on those projects at a coming meeting. So it's just a receive and file for now.	00:13:50
	Thank you for the good work staff, Appreciate it.	00:13:57
	All right, let's move on to.	00:14:00
	Let's see, the script says that we have a.	00:14:06
	Recommendation to receive and file and then it requests a motion. So do we need a motion or not?	00:14:09
	It's up to you. You can make the motion to receive and file or you can we can just say there was board consensus to receive and go	00:14:15
	ahead and do that for the record.	00:14:19
	Can I have a motion to receive and file the agency fiscal year FY?	00:14:22
	20/23/24 Annual financial audit report in a second Yeah move to receive and file.	00:14:26
	2nd.	00:14:33
	All in favor.	00:14:35
	Aye, all opposed.	00:14:36
	Hearing none, motion passes unanimously.	00:14:38
	All right, we're on to agency members reports, comments and requests for future agenda items.	00:14:41
	I'd like to remind agency members that all requested items will require a motion, a second and a majority vote to be placed on a	00:14:47
	future agenda.	00:14:50
	Does anyone have any reports, comments, or requests for future agenda items?	00:14:54
	I see heads shaking no.	00:14:59
	I have one question after.	00:15:01
	Our meeting back, what was that? February?	00:15:04
	I I realized that I couldn't make.	00:15:08
	The United Was it the United Water?	00:15:10
	Agency meetings.	00:15:13
	Remember we had that discussion about you being the association of water, the association of water agencies. Thank you.	00:15:14
	Um, and so Sean has graciously agreed to take on.	00:15:21
	The primary.	00:15:25
	Role and I can serve as alternate. Do we need to agendize that action?	00:15:26
	Or do we just?	00:15:33
	I don't know if.	00:15:35
	Legally, technically we'll need it, but I think what we can do is we'll just on the next consent agenda we'll just have it on	00:15:36
	there for the record. But in the in the meantime, if.	00:15:40
	I'm with him with the.	00:15:44
	Mr. Vice Chair, Thomas being the secondary, I think it's fine in the meantime to serve to cover the meetings so.	00:15:48
	So we'll put a consent item on the next agenda.	00:15:56
	Great. Thank you and thank you for.	00:15:58
	Appreciate it.	00:16:00
	OK, our next regular meeting is scheduled for Monday, May 19th, 2025 at 4:00 PM.	00:16:02
	And if there's no other business, I'd like to thank you all for being here. Thank you all for the good work and the meeting.	00:16:09
	Is now adjourned. It is 416 PM.	00:16:16

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	Visio member laughs in.	00:00:15
	Vice Chair Thomas.	00:00:18
	Here and Chair Hernandez here.	00:00:19
	Thank you.	00:00:21
	Do we have any public comment?	00:00:23
	No public comments, OK.	00:00:25
	Let's go on to agenda approval for the water agency. May I have a motion and a second to approve the agenda?	00:00:26
	Move to approve second.	00:00:33
	All in favor.	00:00:35
	Aye, all opposed.	00:00:37
	Hearing none, motion passes unanimously.	00:00:39
	OK. We will now consider items on the consent calendar which will be enacted in one motion unless an agency member.	00:00:42
	Has a request to remove the item for discussion. May I have a motion in a second to approve our consent calendar?	00:00:48
	Move to approve the consent calendar items one minute.	00:00:55
	To register of disbursements and three monthly operational report.	00:01:00
	Thank you any second.	00:01:04
	2nd.	00:01:06
	Thank you.	00:01:08
	All in favor.	00:01:09
	Aye, all opposed.	00:01:11
	Hearing none, motion passes unanimously. Very good. Moving along.	00:01:12
	So our first business item is the Port Wine Me Water Agency audit report fiscal year 20/23/24.	00:01:16
	We have staff here. So staff, Are you ready to present the report?	00:01:24
	Yes, and I'll be introducing Ashley Chaparro our.	00:01:28
	Interim finance director.	00:01:32
	Ashley has served the city as our Assistant Finance Director for the last several years and with the.	00:01:35
	Our finance director moving on to VCTC a couple months back, Ashley was willing to step into the.	00:01:42
	Interim role. And so I'm going to hand it off to her to give us the audit report.	00:01:49
	For the PHWA.	00:01:55
	Thank you and welcome, Ashley.	00:01:57
	Of the actual accurate report for you.	00:02:10
	But we're going to go over highlights, major changes, what to?	00:02:13
	What are the major changes?	00:02:17
	So looking at the aquifer, the audit was done by Brown Armstrong, certified public accounting firm.	00:02:21
	In accordance with gap standards.	00:02:28
	It is always annually with every audit management's responsibility to prepare and give a fair representation.	00:02:31
	Of what's going to appear in the financial statements that's on us every month to go ahead and.	00:02:39
	Follow all City and PHW policies with all of our purchasing.	00:02:44
	And the auditor checks us on everything, and it's their role to obtain a reasonable assurance about.	00:02:49
	Whether the statements that we're providing them are free from material misstatements.	00:02:55
	We are very happy to report that that was the case. The audit opinion shows that.	00:03:00
	Our financial statements fairly represent in all material respects the financial position of the Agency as of fiscal year ending	00:03:04
	June 30th, 2024.	00:03:08
	Every year the PHWA does face an annual operating loss, so you will see here a comparison of the FY23 figures to the FY24 figures.	00:03:17
	The only major change there is that net loss of 472K.	00:03:28
	That amounts pretty typical. You see 433 the year before. This is always approximately equal to our depreciation for the year.	00:03:34
	That's because you'll see that net position there of 13,000,012 million of that is made-up of PWA assets, the plant itself all.	00:03:42
	All of the pipe.	00:03:50
	Lines and things.	00:03:52
	So those assets depreciate annually according to our schedule.	00:03:54
	That amount I said was approximately depreciation because it is net depreciation. We also add every time we do a major repair, we	00:03:58
	will add value to our assets there.	00:04:03
	Now I'll take a look at our operating revenues and expenses. So note that this does not include the note payable or CIP. We're	00:04:11
	specifically looking at operating here.	00:04:16
	I just wanted to highlight the major changes, which would be the billing adjustment. You note there the sign changed from in 2023	00:04:22
	it shows a negative and in 2024 it shows a positive. That is due to our annual true up.	00:04:28
	So as you know, all the member agencies, every year we do give you a true up to make sure that we're covering all of the expenses	00:04:35
	and charging everyone appropriately every year.	00:04:39
	This did change. Typically we're always giving a credit back to member agencies with this troop calculation.	00:04:45
	And that is for several reasons, that it changed to the opposing sign. And this was the first year in a while that the entities	00:04:52
	did owe PHW a.	00:04:56
	In the past, our budget was always a little slightly inflated to give us room and we've been trying to really annually drill down	00:05:01
	and get our budget as realistically to our.	00:05:07
	Actuals as possible of what we're expecting. So by doing that, we didn't give ourselves as much wiggle room to pay back the	00:05:12
	entities at the end of the year in our attempt to try to get that as close to realistic figures.	00:05:19
	So you will have seen that the budget did go down.	00:05:25
	In addition.	00:05:30
	Usage of water overall did decrease.	00:05:33
	However, there were other expenses that increased that didn't give us that savings, even though we use less water.	00:05:37
	The water amount you'll see on the expense side for water purchases did not go down much.	00:05:44
	And that was for a couple reasons.	00:05:49
	So moving on to the expense side, as I mentioned water.	00:05:51
	Even though usage was down, the United Taker pay did go up.	00:05:55
	And we paid that as well as the OFT aqueduct charges located at the bottom there.	00:05:59
	Those went up as well.	00:06:05
	Actually, if I could just interrupt real quick just for the.	00:06:07
	Board's benefit? She's referring to page 10 in your staff report.	00:06:11
	Thank you.	00:06:17
	So those were shown expenses that did go up that did affect the true up.	00:06:19
	In addition, the other change was the water plant operating expenses increased.	00:06:23
	That was due to overall employee costs and the pension costs that were passed on as previously noted in a prior audit that we will	00:06:28
	continue to pass those on to the agencies annually.	00:06:33
	The other third increase in operating expenses was.	00:06:39
	We did have to cover the operational audit this past fiscal year, so that was another increased expense.	00:06:43
	So overall, again revenues over expenses due to the true openness capturing those total costs, the only loss there mentioned is	00:06:53
	that same net depreciation of capital assets.	00:06:58
	Can you go back to the last slide?	00:07:07
	Sure.	00:07:08
	So insurance looked like it went up 17,000.	00:07:10
	What was the reason for that?	00:07:14
	Insurance is pretty volatile and we're always getting an increase back, an increase, a slight increase annually from that	00:07:17
	insurance cost.	00:07:21
	OK, so we'll just.	00:07:25
	It was a regular cost increase from our insurance provider.	00:07:26
	I can note there too and we've already been notified that there will be another increase for this year from our insurance	00:07:32
	providers. So that is.	00:07:36
	Sort of.	00:07:40
	Just just like everybody with their home insurance right now is seeing their their.	00:07:41
	Premiums increasing the city's also.	00:07:46
	Cities and agencies are also seeing those things.	00:07:49
	Seems to be the trend.	00:07:52
	Thank you.	00:07:54
	Another change that I did want to point out that we haven't recently had to reference regarding the ACT for in our financials is	00:07:59
	our cash flow for the PHWA fund.	00:08:04
	The agency as a whole.	00:08:09
	I did want to show you overall trend over the years here.	00:08:10
	And you'll notice that we did have a pretty good cash flow. This is the amount literally in our checking account where we're	00:08:14
	paying our checks and payroll every month.	00:08:18
	And we did have a nice cushion there for a while, which is why we've never had to talk about this.	00:08:23
	But recently this last fiscal year, we did find that our cash flow was pretty low.	00:08:28
	The reason I wanted to bring this up is because we will be coming to you with the budget soon at the next meeting and we will be	00:08:33
	talking about how we are going to start increasing our CIP costs annually.	00:08:39
	CIP is something we just haven't had a major plan and budget for for quite some time. We've been doing small maintenance projects	00:08:44
	throughout the year, but nothing has extensive but what we're going to propose with this budget.	00:08:50
	And with that could come very large costs.	00:08:56
	At varying times.	00:08:59
	Such as upfront costs at the beginning of the fiscal year related to large design plans with our consultants.	00:09:01
	And so we need to make sure that we have the cash in the bank to be able to pay for some larger incurred costs upfront moving	00:09:06
	forward now that we're going to start the CIP plan.	00:09:11
	I have a question. I I do have a question and that may have been the case in 20/22/23.	00:09:16
	Because it looks like that it's exponentially higher.	00:09:23
	Than it was last year. So can you tell us a little bit about what happened?	00:09:26
	So we've had a cushion.	00:09:30
	In our cash flow, because we always have a small CIP reserve, we put away 50K annually from all the entities, which is another	00:09:33
	item open for discussion whether that amount is fair and something we should continue to do or revisit.	00:09:41
	So that 50K, you know, gets built up in a reserve.	00:09:50
	Which is why we have some money to work with here.	00:09:54
	But when we build our budget, we then divide that according to the entities and give you your monthly budget for that upfront,	00:09:57
	right? And we say, OK, this is how much.	00:10:01
	Your fixed cost is going to be.	00:10:06
	We're going to divide that through the year and charge you every month for that.	00:10:08
	So sometimes there's a timing issue for when we're receiving the checks from all the entities.	00:10:11
	Versus what we're paying out operationally monthly?	00:10:16
	Before CIP, it was pretty standard stuff. We're paying every month the amount of accounts payable for our utilities, for our water	00:10:19
	bills, for our payroll. Now that we're going to start bigger projects, we're anticipating larger costs at varying times.	00:10:27
	And that's what worries me about the cash flow that we want to have a little bit built up in there as you're seeing we had in	00:10:34
	prior years.	00:10:37
	But now that we're starting to payout that design, payout these bigger costs, we're seeing a little less cash flow in the bank.	00:10:40
	So I want to be prepared and make sure that we have a cushion up front the beginning of the year and not have to wait until we get	00:10:48
	a couple months worth back from the entities to cover these larger payments.	00:10:53
	So that's something we'll bring up with you and make suggestions to you all at budget time.	00:10:59
	Great. Thank you.	00:11:03
	Mm-hmm.	00:11:04
	So those were my larger items. I wanted to point out from the aquifer for you all the major changes. I would argue so.	00:11:08
	The action steps for tonight would be to receive and file the PHWA.	00:11:16
	Annual Comprehensive Financial Report for the fiscal year ended June 30th, 2024.	00:11:20
	Thank you.	00:11:26
	I'm sorry, I'm so sorry. One more.	00:11:27
	Apologies, there are future action items that I failed to mention. So we currently are undergoing an RFP for audit services.	00:11:29
	We would like to present the proposed audit firm to you all.	00:11:39
	In the near future.	00:11:43
	The current audit firm has been in place for over 20 years. We have no problems with them. They're really great. However,	00:11:45
	according to.	00:11:48
	According to the California State Controller recommendations, we really should be switching out our auditor much more frequently	00:11:53
	than that.	00:11:56
	It should be about every six years.	00:11:59
	So obviously we're well past that. We do have our RFP out now. We are getting a lot of people asking questions thus far. That's	00:12:02
	the point of the process in which we are in. We haven't received bids yet, but we do have some time still.	00:12:07
	For that. So we'll be responding to questions, reaching out with all these prospective bidders and hope to get a new audit firm in	00:12:13
	place.	00:12:17
	So that we can meet transparency needs and.	00:12:21
	That kind of rotation.	00:12:24
	So that's a future item. In addition to that, I mentioned the budget. So we will be hoping to present that to you all in the June	00:12:26
	meeting, which I have as the June 16th pH D.	00:12:31
	Meeting that, we will be presenting that budget and like I said something about cash flow and that CIP plan that we have in place.	00:12:37
	All right, very good. Yes, I was reading.	00:12:46
	The staff report and I saw that.	00:12:48
	The audit.	00:12:50
	Company we use has been in place for 20 years and I went whoa. And then the next statement says, well, we're going out for an RFP.	00:12:51
	So that's good to know.	00:12:57
	So we'd went out for an RFP previously. We've tried, but last year we didn't get any bidders other than the current audit firm.	00:12:59
	I believe that was because we didn't mention that we're such a small entity that we are open to doing a fully virtual audit fully	00:13:07
	online. That is what we've been doing with our current auditors. So this time I really highlighted that in hopes that we do get a	00:13:12
	lot more bidders.	00:13:17
	I know we're really small so I feel like that was part of it and I'm hoping that virtual aspect of it will get us a lot more bits.	00:13:22
	OK. I'll open it up to the board. Are there any questions from the board?	00:13:30
	OK, very good. Thank you so much. Thank you. And this is a receive and file, so no action.	00:13:38
	Required, yes, receive and file. And then like Ashley said, we will bring back some recommendations to sort of plan for CIP and	00:13:43
	how we'll work on those projects at a coming meeting. So it's just a receive and file for now.	00:13:50
	Thank you for the good work staff, Appreciate it.	00:13:57
	All right, let's move on to.	00:14:00
	Let's see, the script says that we have a.	00:14:06
	Recommendation to receive and file and then it requests a motion. So do we need a motion or not?	00:14:09
	It's up to you. You can make the motion to receive and file or you can we can just say there was board consensus to receive and go	00:14:15
	ahead and do that for the record.	00:14:19
	Can I have a motion to receive and file the agency fiscal year FY?	00:14:22
	20/23/24 Annual financial audit report in a second Yeah move to receive and file.	00:14:26
	2nd.	00:14:33
	All in favor.	00:14:35
	Aye, all opposed.	00:14:36
	Hearing none, motion passes unanimously.	00:14:38
	All right, we're on to agency members reports, comments and requests for future agenda items.	00:14:41
	I'd like to remind agency members that all requested items will require a motion, a second and a majority vote to be placed on a	00:14:47
	future agenda.	00:14:50
	Does anyone have any reports, comments, or requests for future agenda items?	00:14:54
	I see heads shaking no.	00:14:59
	I have one question after.	00:15:01
	Our meeting back, what was that? February?	00:15:04
	I I realized that I couldn't make.	00:15:08
	The United Was it the United Water?	00:15:10
	Agency meetings.	00:15:13
	Remember we had that discussion about you being the association of water, the association of water agencies. Thank you.	00:15:14
	Um, and so Sean has graciously agreed to take on.	00:15:21
	The primary.	00:15:25
	Role and I can serve as alternate. Do we need to agendize that action?	00:15:26
	Or do we just?	00:15:33
	I don't know if.	00:15:35
	Legally, technically we'll need it, but I think what we can do is we'll just on the next consent agenda we'll just have it on	00:15:36
	there for the record. But in the in the meantime, if.	00:15:40
	I'm with him with the.	00:15:44
	Mr. Vice Chair, Thomas being the secondary, I think it's fine in the meantime to serve to cover the meetings so.	00:15:48
	So we'll put a consent item on the next agenda.	00:15:56
	Great. Thank you and thank you for.	00:15:58
	Appreciate it.	00:16:00
	OK, our next regular meeting is scheduled for Monday, May 19th, 2025 at 4:00 PM.	00:16:02
	And if there's no other business, I'd like to thank you all for being here. Thank you all for the good work and the meeting.	00:16:09
	Is now adjourned. It is 416 PM.	00:16:16