HAVE JOINED US IN THE DAY AS WHO
AREN'T OFFICIALLY MEMBERS OF THE
G. L. B. C. --
AND IT'S AT THE DISCRETION OF
THE CHAIR TO ALLOW MEMBERS TO
JOIN US AT THE DAY YES AND YOU
ARE MORE THAN WELCOME SAUL.
AND BIDED ASSEMBLY MEMBER
FRASIER TO PLEASE COME JOIN US.
I'D LIKE TO WELCOME ALL MY
COLLEAGUES ON AND EVERYONE ON AS
WELL AS OTHER ELECTED OFFICIALS
WHO ARE JOINING US TODAY.
ON ANTAR WITNESSES THE MEMBERS
OF THE PUBLIC.
APPRECIATE YOU FOR BEING HERE I
APPRECIATE --
ALL OF THE PERSPECTIVES ON THAT
WE WILL HEAR TODAY IN THIS
INFORMATIONAL HEARING.
THIS HEARING.
AS MANY OF YOU MAY KNOW IS
UNUSUAL FOR THE JOINT
LEGISLATIVE BUDGET COMMITTEE FOR
THOSE OF YOU WHO MAY NOT BE
FAMILIAR WITH THE JAIL BC.
MOST OF OUR WORK INVOLVED BEHIND
THE SCENES OVERSIGHT.
OVERSIGHT NONE THE LESS WE
REVIEW MANY IMPORTANT CHANGES
ARE PROPOSED TO THE STATE BUDGET
WHICH IS WHY I HAVE --
SENATOR MITCHELL I ASSURE THE
SET BUDGET COMMITTEE HAVE THE
PRIVILEGE TO CHAIR THE T. L. B.
C..
I'LL GIVE YOU A RECENT EXAMPLE
AT THE END OF LAST WEEK CAL
FIRED NOTIFIED US OF THE REQUEST
TO INCREASE THEIR EMERGENCY FIRE
SUPPRESSION BUDGET.
BY TWO HUNDRED THIRTY FOUR
MILLION DOLLARS.
OF COURSE WE'RE ALL AWARE THE
CRITICAL SITUATION FACING OUR
COMMUNITIES ACROSS THE STATE ARE
FIRST RESPONDERS ON THE GROUND
WITH ALL OF THESE CRISES THAT WE
CAN'T SEEM TO EX GAY.
IT'S PART OF THE GOP SEES ROLE
TO HELP MAKE FUNDING AVAILABLE.
FOR EMERGENCY RESPONSE TO SUCH
AS THESE I MERRY ROLE AT THE
JAIL BC TO BE ABLE TO ALLOCATE
FUNDS KIND OF MID BUDGET CYCLE.
TODAY'S HEARING AS YOU ALL ARE
AWARE AS ABOUT THE STATE WATER
PROJECT WHICH IS OPERATED BY THE
DEPARTMENT OF WATER RESOURCES.
THIS SEVEN HUNDRED MILE LONG
WATER STORAGE AND DELIVERY
SYSTEM PROVIDES WATER TO TWENTY
SIX MILLION PEOPLE AND SEVEN
HUNDRED FIFTY THOUSAND ACRES OF
FARMLAND.
MOST OF THE COST OF THE PROJECT
ARE FUNDED THROUGH TWENTY NINE
LONG TERM WATER SUPPLY CONTRACTS.
IN MAY OF THIS YEAR THE
DEPARTMENT NOTIFIED THE JAIL BC
OF ITS INTENT TO RENEW THOSE
CONTRACTS.
NEGOTIATIONS OVER THE PROPOSED
CONTRACT EXTENSIONS BEGAN BACK
IN.
TWENTY THIRTEEN UNDER STATE LAW
THE DEPARTMENT IS REQUIRED TO
PRESENT THOSE PROPOSED CONTRACT
RENEWALS IN AN INFORMATIONAL
HEARING BEFORE THE GOP SEE.
TODAY'S HEARING SERVES AS THE
ROOT HEARING REQUIRED BY THAT
STATE LAW.
TODAY'S HEARING HOWEVER IS NOT
THE FIRST LEGISLATIVE HEARING ON
THE SUBJECT.
ON JULY THIRD TO FINISH NATURAL
RESOURCES AND WATER COMMITTEE
HELD A HEARING ON THE SAME
SUBJECT WHERE THE PROPOSED
CONTRACT A MEMBERS WERE REVIEWED
AND DISCUSS AND THE PUBLIC WAS
INVITED TO TESTIFY.
IN ANOTHER MEMBER OF THE POLICY
COMMITTEE BUT I SURE THE GOP SEE
I SAT IN ON THAT FULL HEARING.
THIS HEARING IS ANOTHER
OPPORTUNITY FOR US TO HEAR
CONTRACT EXTENSION AMENDMENTS WE
WILL NOT BE TAKING ANY ACTIONS
ARE VOTE BECAUSE AGAIN THIS IS
AN INFORMATIONAL HEARING.
REQUIRED BY LAW.
AND WHILE THE WATER FIXER DELTA
TUNNELS PROJECT IN ITS FINANCING
ARE OF GREAT INTEREST TO ALL OF
YOU HAVE GATHERED TODAY AS WELL
AS MEMBERS OF THE LEGISLATURE --
TODAY'S HEARING DOES NOT
AUTHORIZE OR PREVENT THE WATER
FIX PROJECT FROM MOVING FORWARD.
NOR ARE WE VOTING ON THE DETAILS.
OF WHO WOULD PAY FOR THE WATER
FIX IF INDEED IT DOES MOVE
FORWARD.
THERE ARE SEVERAL LEGAL
REGULATORY AND FINANCIAL
PROPHECIES THAT WOULD HAVE TO BE
COMPLETED BEFORE THE WATER FIX
PROJECT COULD MOVE FORWARD.
AND THE LEGISLATURE INTENDS TO
BE FULLY ENGAGED IN EVERY STEP
ALONG THAT PROCESS.
THIS HEARING DOES NOT CHANGE OR
SHORT CUT THOSE REQUIREMENTS.
AND THE POLICY IN THE SCHOOL
COMMITTEES OF THE LEGISLATURE
WILL WANT TO CONDUCT FURTHER
OVERSIGHT.
AS THOSE PROPHECIES UNFOLD HEY
AS WE FOCUS ON OVERSIGHT OF THE
PROPOSED CONTRACT EXTENSION
AMENDMENTS WE WILL BEGIN WITH
TESTIMONY FROM THE EL AL'S
OFFICE.
AND THE DEPARTMENT OF WATER
RESOURCES WE WILL ALSO HEAR FROM
STAKEHOLDERS --
AND WE WILL ALLOW EVERYONE WHO'S
HERE WHOSE MEMBERS OF THE PUBLIC
TO PROVIDE PUBLIC COMMENT.
WITH THAT --
I WOULD ASK MEMBERS OF THE JAIL
BC COMMITTEE IF YOU HAVE OPENING
COMMENTS.
OTHER MEMBERS WHO HAVE JOINED US
HERE TODAY CAN PROVIDE ANY
OPENING COMMENTS AND FEEL FREE
TO ENGAGE IN FULL DISCUSSION --
WHEN WITNESSES COME FORWARD BUT
WE'LL ASK ONLY THAT SEE THAT
MEMBERS OF THE JAIL BC I WAS NOT
INFORMED FROM --
IS SIMPLY RULED THAT ANYONE WAS
APPOINTED TO REPLACE THE FAMILY
MEMBERS WHO ARE HERE OFFICIALLY.
IT'LL WORK ARE GLAD TO HAVE YOU
AS OUR GUEST DOCTOR PAN YOU'D
LIKE TO PROVIDE OPENING COMMENT.
AND THEN FOLLOWED BY SENATOR
MINING THANK YOU THANK YOU MADAM
CHAIR AND I JUST WANT --
TO FIRST OF ALL MAKE NOTES AND I
THINK.
OUR CHAIR --
FOR FOR ACTUALLY --
THIS I KNOW THIS HEARING WAS
PREVIOUSLY SCHEDULED TWO WEEKS
AGO AND TO AND AND AND THE
FOURTEEN THE OPPORTUNITY.
FOR MEMBERS LIKE ME LIKE MYSELF
TO BE ABLE TO REVIEW THE
MATERIALS IN PREPARATION AND SO
I WANT TO THANK THE CHAIR FOR
FOR FOR DOING THAT AND REALIZE
THAT NOT THAT REQUIRED YOU TO
NOW TRAVELS BACK UP SACRAMENTO
AFTER SPENDING.
A LOT OF TIME IN SACRAMENTO ALL
OF US TOGETHER --
I WOULD ALSO MAKE NOTE OF THAT
AND I LOOK VERY MUCH LOOK
FORWARD TO HEARING OUR WITNESSES --
WHO ARE GONNA BE COMING UP AND
PARTICULARLY FROM THE WATER
RESOURCES --
CERTAINLY THE STATE WATER
PROJECT IS ONE THAT'S CRITICAL --
TO THE STATE SOME.
PROJECT THAT --
AND THAT IT HAS A HUGE IMPACT ON
ON THE PEOPLE OF THE STATE OF
CALIFORNIA INCLUDING MY
CONSTITUENTS --
APPRECIATE THE THE CHAIRS
REMARKS --
ABOUT THE NEED.
TO HAVE THIS HEARING SO WE CAN
HEAR ABOUT THESE CONTRACT
MINUTES BUT ALSO.
ABOUT THIS THE STATE WATER FIX
IT WHICH IS SOMETHING THAT --
I THINK A LOT OF PEOPLE --
KLAY MAIN BY CONSTITUENTS HAVE
SIGNIFICANT CONCERNS ABOUT --
AND AND I THINK IN MANY LOOKING
FORWARD TO HEARING FOR AGAIN
FROM THE PRESENTATIONS.
I THINK WHAT'S GONNA BE REALLY
IMPORTANT IS THAT THERE'S A LOT
OF TRANSPARENCY AND AND AND THAT --
WE EXPECT THE AGENCIES TO BE
VERY UP FRONT ABOUT WHAT THEY'RE
NOT ONLY THEIR INTENTIONS BUT
THEIR ACTIONS ARE.
BECAUSE IT THINK THERE IS A LOT
OF SUSPICION THAT'S OUT THERE
AND WE NEED TO BE SURE THAT
WE'RE MOVING FORWARD IN A
POSITION OF TRUST.
SO I KNOW THAT MANY PEOPLE ARE
CONCERNED THAT THIS HEARING
WOULD NOW ALLOW D. W. R. TO MOVE
FORWARD.
IN A WAY THAT --
MAY NOT.
NECESSARILY HAVE SUPPORT OF
PEOPLE IN IN THE DELTA COMMUNITY
AND I CERTAINLY HOPE THAT --
WE'LL HEAR REASSURANCES FROM THE
W. ART THAT'S NOT THE CASE --
THAT --
THINGS WILL NOT BE HAPPENING THE
BACKGROUND AND SO I LOOK FOR TO
TO TO THAT.
TESTIMONY AS WELL I WILL ALSO
NOTE THAT THIS IS INFORMATIONAL
HEARING THAT WE DO NOT HAVE A
CORE OF THE COMMITTEE PRESENTS
HERE AT THE MOMENT --
BUT CERTAINLY --
LOOK FORWARD TO HEARING
PRESENTATIONS THAT WE HAVE.
BEFORE US THANK YOU THANK YOU
VERY MUCH --
DOCTOR PAN AND AGAIN TO CLARIFY --
NO ROLE IS TAKEN NO PHOTOS TAKEN
IN THERE'S NO QUORUM REQUIREMENT
FOR AN INFORMATIONAL HEARING
CENTER MINING.
WELL THANK YOU MADAM CHAIR I TOO
WANT.
TO JOIN MY COLLEAGUE FROM
SACRAMENTO IN THANKING YOU FOR
YOUR LEADERSHIP AND FOR
FACILITATING --
BROAD PARTICIPATION FROM OUR
SENATE COLLEAGUES ASSEMBLY
COLLEAGUES AND I'M LOOKING
FORWARD TO HEARING.
FROM BOTH THE PLANS PRESENTERS
AND STAKE HOLDERS WHO ARE HERE
TODAY.
I SHARE SOME OF THE QUESTIONS
AND CONCERNS VOICED BY MY
COLLEAGUE THAT I WILL WAIT AND
GET THE OPPORTUNITY THROUGH THE
CHAIR TO ASK QUESTIONS AS THE
APPROPRIATE WITNESSES COME
FORWARD SO THANK YOU.
THANK YOU FOR REMINDING SENATOR
FOWLER.
I ALSO WANT TO THANK THE CHAIR I
THINK THIS IS --
VERY CRITICALLY IMPORTANT TO ALL
OF US TO GET THE QUESTIONS OUT
ON THE TABLE TO MAKE.
THE DISTINCTIONS THAT WILL HELP
PEOPLE UNDERSTAND THE DIFFERENCE
BETWEEN BEING ABLE TO DO OUR
DAILY BUSINESS --
IN THE WATER PROJECT WHICH IS
CRITICALLY NEEDED IN CALIFORNIA
AND HOW WE ARE GOING TO MOVE
OTHER NEW PROJECTS UP ALONG THE
WAY.
AND THAT THEY ARE NOT
NECESSARILY INTER DEPENDENT UPON
THIS HEARING BUT THAT IT IS A
PART OF THE OVERALL BUSINESS OF
THE STATE WATER CONTRACTORS AND
THE DVR AND ALL OF THE WATER
STAKE HOLDERS THAT ARE HERE SO.
THIS GIVES US AN OPPORTUNITY TO
CLARIFY THAT.
AND ASK OUR QUESTIONS IN A TIME
WHERE WE HAVE A LITTLE LESS
DISTRACTION AND WE HAD HIM
SECTIONS OF THANK YOU.
THANK YOU VERY MUCH BEFORE WE
HAVE L. A. L. COME UP I JUST
WANT TO ACKNOWLEDGE RECEIPT --
OF REALLY AMONG HUNDREDS OF
LETTERS THAT THE COMMITTEE HAS
RECEIVED BUT LETTERS FROM MY
COLLEAGUES IN THE LEGISLATURE --
FROM THE DELTA CAUCUS THANK YOU
AS WELL AS FROM A SITTING MEMBER
OF CONGRESS AND I'M JUST GOING
TO READ IT EXCEPT IF YOU DON'T
MIND SIR BECAUSE I WANT --
THE WITNESS FIRST FROM --
THE DID IF YOU ARE TO BE
PREPARED TO RESPOND TO THE
ISSUES THAT HAVE BEEN RAISED.
THE POINT OF THE INFORMATIONAL
HEARING.
IS FOR US TO GET INFORMATION.
AND THAT IS WHAT I FULLY INTEND
TO HAVE HAPPENED TODAY.
AS A PART OF OUR FUNDAMENTAL
OVER SEX THIS LECTURE AND SO
FROM -- THE
LETTER FROM THE DELTA CAUCUS --
SIGNED BY MEMBERS OF BOTH THE
ASSEMBLY AND THE SENATE.
ON IT SAYS AND I QUOTE AT
PRESENT THE PROPOSED AMENDMENTS
ARE POORLY DEFINED AND EXPLAINED
THAT HAVE POTENTIAL ADVERSE
IMPACTS FAR BEYOND THEIR PARENTS
GO.
THERE IS MUCH THAT REMAINS
UNKNOWN REGARDING THE EXTENSIVE
CHANGES TO THE SWP CONTRACTS ARE
BEING PROPOSED AND HOW THE
CHANGES WILL IMPACT PROPERTY
TAXES WATER RATES THE FISCAL
INTEGRITY OF THE SWP.
AND GENERAL FUN.
NEITHER THE PROPOSALS AS TO BE
CONTRACT EXTENSION AMENDMENTS
NOR THE WATER FIX CONTRA
COMMITMENTS HAVE FULLY COMPLETED
THE CALIFORNIA.
IN ITS SEQUEL REQUIREMENTS THE
LACK OF ANALYSIS AND
TRANSPARENCY OF THESE AMENDMENTS
CREATES A FAULT OF COMPLEXITY
FOR THE PUBLIC AND THE
LEGISLATURE TO CONDUCT
APPROPRIATE.
LEGISLATIVE OVERSIGHT.
EQUALLY IMPORTANT THE DVR'S
CURRENTLY NEGOTIATED THIS ALL
MEMBERS OF THE SWP CONTRACTS
REGARDING THE CALIFORNIA WATER
FIX PROJECT THOSE AMENDMENTS
WOULD ALLOW PERMANENT TRANSFERS
OF WATER BETWEEN SWP CONTRACTORS.
IN ORDER TO ALLOW URBAN SBP
CONTRACTORS SUCH AS THE
METROPOLITAN WATER DISTRICT OF
SOUTHERN CALIFORNIA TO
PERMANENTLY PURCHASE WATER FROM
AGRICULTURE AND CITY CONTRACTS
SUCH AS THE KERN COUNTY WATER
MORE OF THE COST. FOR THE WATER
FIX PROJECT I'M GONNA GO DEEPER
INTO THE WATER FIX PEACE BUT I
WANTED TO FOCUS ON THAT.
LINE OF QUESTIONING AND THAT.
CLEAR CONCERN WITH REGARD TO THE
CONTRACT AMENDMENTS THAT AT THE
POINT OF TODAY'S HEARING.
AGAIN WE RECEIVED A SIGNED
LETTER FROM FOUR SITTING MEMBERS
OF CONGRESS AND WE HAVE --
WITNESSES HERE WHO WILL BE ABLE
TO PROVIDE TESTIMONY DURING
PUBLIC COMMENT --
AGAIN THEY'RE DEEPLY CONCERNED
ABOUT THE EXORBITANT COST OF THE
PROJECT AND THE LACK OF
TRANSPARENCY THROUGHOUT THIS
PROCESS SO I THINK BOTH LETTERS
GENERALLY --
REFLECT COMMON SENT THIS WILL BE
ABLE -- TO
DEALT A LITTLE MORE DEEPLY BUT I
WANTED TO AT THE ONSET OF
TODAY'S HEARING.
IDENTIFY THOSE CONCERNS AND LET
THE DEPARTMENT NO WE ARE FULLY
EXPECTING TO ENGAGE IN A HEARTY
DISCUSSION ALL AND AND EXPECT TO
GLEAN ANSWERS TO SOME OF THOSE
CONCERNS.
SO IT WILL GO AHEAD AND GET
STARTED WITH THE HEARING I'LL
INVITE --
DELI ELSE OFFICE TO STEP FORWARD
[inaudible]
RACHEL ELLERS.
GOOD MORNING EVERYTHING YOU MAN
I'M GOING TO ASK THAT AFTER YOU
FINISH THE TESTIMONY THAT YOU
STAY AT THE TABLE SO AS WE GO
INTO QUESTIONS WHATTHE
DEPARTMENT COMES FORWARD TO BE.
READY AND AVAILABLE LOOSELY
THANK YOU THANK YOU GOOD MORNING
RACHEL EHLERS WITH THE LEGEND
LESS OFFICE I'LL BE SPEAKING
FROM A HANDOUT THAT'S BEING
DISTRIBUTED RIGHT NOW THE HAND
IT'S ALSO ON OUR WEBSITE FOR
THOSE WHO ARE NOT ON THE DANCE.
I'VE BEEN ASKED BY SOME BRIEF
BACKGROUND ON WHY WE'RE HERE
TODAY THE STATE WATER PROJECT
ITSELF AND ITS CONTRACTING
PROCESS TO PROVIDE SOME CONTEXT
FOR THE DISCUSSION.
HIGHLIGHTS OF THE CONTRACT
AMENDMENT TO BE DISCUSSING TODAY
ALTHOUGH CLEARLY DID DETAILED
DISCUSSION AND PRESENTATION WILL
BE FROM THE DEPARTMENT ON THAT.
AND THEN CONCLUDE WITH SAM
SUGGESTED OVERSIGHT QUESTIONS
FOR YOU AS YOU PROCEED THROUGH
THE HEARING.
SO TURNING TO THE FIRST PAGE OF
THE HANDOUT AS AS THE CHAIR
NOTED THIS IS A SOMEWHAT UNUSUAL
ROLE FOR THE JAIL BC BUT IT IS A
STATUTORY REQUIREMENT.
THAT ANY RENEWAL OR EXTENSION.
OF A LONG TERM WATER SUPPLY
CONTRACT BETWEEN D. W. ARE AND
THE STATE WATER PROJECT
CONTRACTOR HAVE THIS
INFORMATIONAL HEARING.
AND YOU KNOW YOU ARE IN THE
CONTRACTORS' CANNOT PROCEED TO
FINALIZE THOSE AMENDMENTS UNTIL
SIXTY DAYS AFTER THIS
INFORMATIONAL HEARING TAKES
PLACE.
THIS IS THE FIRST TIME THAT THE
STATUTORY REQUIREMENT HAS BEEN
APPLICABLE SINCE THAT STATUTE
WAS ENACTED IN TWO THOUSAND AND
TWELVE SO.
HAVE.
UNUSUAL SITUATION.
AND HERE WE ARE --
THE STATUTORY REQUIREMENT FOR
THAT DATE OF YOUR PRESENTATION
TERMS AND CONDITIONS OF THE
CONTRACT AND AND HOW THOSE --
DIDN'T SERVE S A TEMPLATE FOR
THE REMAINING LONG TERM WATER
SUPPLY CONTRACTS.
AND AS THE CHAIR NOTED THE
STATUTE DOES NOT REQUIRE
APPROVAL FROM THE JAIL B. C. OR
ANY FORMAL ACTION JUST THAT THIS
INFORMATIONAL HEARING TAKE PLACE.
SO TURNING TO PAGE TWO TO SOME
BACKGROUND ON THE STATE WATER
PROJECT ITSELF --
IN SIMPLEST TERMS IT'S A STATE
OWNED.
WATER DELIVERY SYSTEM THAT
BRINGS WATER FROM NORTH TO SOUTH --
IT'S IT'S QUITE LARGE --
ONE OF THE LARGEST IN THE NATION
IT HAS THE TALLEST DAM IN THE
NATION IN ORVILLE AND THE
HIGHEST WATER LEFT IN THE WORLD
TO BRING THE WATER OVER THE TO
HATCH BE MOUNTAINS IN SOUTHERN
CALIFORNIA.
IT'S A SYSTEM OF RESERVOIRS
AQUEDUCTS POWER PLANTS AND
PUMPING PLANTS THAT AS THE CHAIR
NOTED EXTENDS MORE THAN SEVEN
HUNDRED MILES.
AND IT APSOS WATER TO THESE
TWENTY NINE LONG TERM WATER
CONTRACTORS SOME OF THESE
CONTRACTORS --
USE THE WATER DIRECTLY THEIR
CITIES AND COUNTIES THAT THAT
BRINGS THE WATER DIRECTLY TO
RESIDENTS AND SOME OF THOSE
CONTRACTORS ARE WATER
WHOLESALERS THAT RECEIVE THE%
WATER AND THEN IN TURN SELL IT.
TO CITIES AND COUNTIES ONE OF
THE LARGEST WATER WHOLESALERS AS
METROPOLITAN WARM WATER DISTRICT
OF SOUTHERN CALIFORNIA WHO
YOU'LL HEAR FROM --
LATER TODAY.
MOST AS FOR RESIDENCES AND
BUSINESSES FROM ABOUT 30% IS
USED FOR AGRICULTURE SO THIS IS
A LITTLE BIT OF A SWITCH FROM
THAT OTHER BIG WATER SYSTEM THE
STATE THE CENTRAL VALLEY PROJECT
ON BY THE FEDERAL GOVERNMENT
THAT PRIMARILY SERVES
AGRICULTURAL --
CUSTOMERS THE STATE WATER
PROJECT IS PRIMARILY RESIDENTIAL.
HOW MUCH WATER IS DELIVERED
EVERY YEAR REALLY VARIES VARIES --
IN PART BASED ON HOW MUCH WATER
WE RECEIVE AS A STATE --
IN RAIN AND SNOW FALL IN A GIVEN
YEAR BUT ALSO THINGS LIKE
SALINITY IN THE DELTA WATER
NEEDED FOR MIGRATING FINISH
THEIR STATE AND FEDERAL
REGULATORY AGENCIES THAT GOVERN
HOW MUCH WATER CAN BE PUMPED IN
THE SET THROUGH THE PUMPS IN THE
SOUTH OF THE DELTA.
I'M DOWN TO SOUTHERN CALIFORNIA.
THE LONG TERM AVERAGE.
ACROSS THE PAST TEN YEARS IS ONE
POINT EIGHT MILLION ACRE FEET
HAS BEEN DELIVERED.
THROUGH THE STATE WATER PROJECT --
THIS IS MUCH LOWER THAN WHAT THE
DATA WOULD YOU W. R. DOCUMENT
STATE CAN BE THE FULL OPERATING.
KAT CAPACITY OF THE SYSTEM IN
PART BECAUSE OF THOSE LIMITING
FACTORS THAT I MENTIONED
ALTHOUGH THAT THIS THE PROJECT
IS NEVER DELIVERED THE FULL
AMOUNT OF WHAT IS STATED AS ITS
OPERATING CAPACITY --
IN TWO THOUSAND SEVENTEEN THE
SYSTEM DELIVERED TWO POINT FIVE
MILLION ACRE FEET SO HIGHER THAN
THE LONG TERM AVERAGE SINCE WE
HAD A RELATIVELY WENT YEAR IN
TWO THOUSAND SIXTEEN AND
SEVENTEEN AS AS WE ALL KNOW THAT
MINISTRATIONS PROPOSED A MAJOR
MODIFICATION TO THE STATE WATER
PROJECT IN THE DELTA.
KNOWN AS CALIFORNIA WATER FIX
AND THAT PROJECT IS CURRENTLY IN
THE PROCESS OF SEEKING
REGULATORY AND PERMISSIONS AND
FUNDING COMMITMENTS.
TURN TO PAGE.
THREE HIS SYSTEM MAP OF THE
SYSTEM TO PROVIDE OF FOR THOSE
OF US WHO ARE VISUAL LEARNERS --
MAKE OR A BILL AT THE TOP OF THE
FEATHER RIVER IS THE LARGEST
RESERVOIR IN THE SYSTEM.
AND YOU CAN SEE THE DELTA IS THE
SPIDER WEB IN THE MIDDLE OF THE
MAP AND THEN THE STARK LINES ARE
THE THE MAIN AQUEDUCT CALIFORNIA
AQUEDUCT THAT BRINGS THE WATER
TO SOUTHERN CALIFORNIA --
I WOULD JUST NOTE THAT THIS JUST
SHOWS THE STATE OWNED FACILITIES
THERE ARE MANY LOCAL AND AND
ALSO FEDERALLY OWNED --
FACILITIES THAT BRING THAT WATER
TO THE LAST TWELVE CITIES THAT
YOU SAID
WHY WE'RE HERE TODAY
THESE LONG TERM CONTRACTS
SIX
SIXTY ARMS TO DECEMBER THIRTY
FIRST. TWENTY EIGHTY FIVE ONE OF
THE MAJOR CHANGES IS ABOUT THE
BILLING AND FOR CAPITAL COSTS
CHANGING FROM THE CURRENT
CONTRACTS OF WHERE --
COSTS MUST BE AMORTIZED OVER
MANY YEARS TO PAY AS YOU GO
SYSTEM --
THERE'S A PROVISION TO INCREASE
THE INCREASE THE ALLOWABLE
RESERVE --
AMOUNT FOR THE PROJECT --
IT EXTENDS EXPANDS THE
CONDITIONS UNDER WHICH DATE OF
YOUR CAN ISSUE WATER SYSTEM
FACILITY REVENUE BONDS FOR
CAPITAL PROJECTS SO WHEN THE
CURRENT CONTRACT IT'S LIMITED --
TO FACILITIES IN ORDERTO TO
ISSUE THESE BONDS IS LIMITED TO
FACILITIES THAT WERE IN PLACE
BEFORE.
NINETEEN EIGHTY SEVEN SO THIS
WOULD ALLOW FOR ISSUING THESE
TYPES OF BONDS FOR NEW
FACILITIES --
IT ESTABLISHES A NEW FINANCE
COMMITTEE FOR D. W. R. AND
CONTRACTORS TO DISCUSS WITH EACH
OTHER --
FINANCIAL PROVISIONS OF THE
PROJECT AND THEN FINALLY THE
LAST BULLET.
SOMETHING THAT THE CHAIR NOTED
IT DOES NOT INCLUDE PROVISIONS
THAT ARE DIRECTLY RELATED TO
CALIFORNIA WATER FIX BUT I JUST
SPEND A MA'AM MOMENT ADDRESSING
THAT.
WHAT WE MEAN BY THAT IS IT
DOESN'T INCLUDE PROVISIONS
RELATED TO HOW WATER FIX COSTS
WOULD BE ALLOCATED ACROSS THE
CONTRACTORS ARE HOW ANY WATER
THAT WOULD COME AS A RESULT OF
THE WATER FIX PROJECT WOULD BE
ALLOCATED?
THAT IS BEING NEGOTIATED IN A
SEPARATE CONTRACT AMENDMENT
RIGHT NOW THAT IS NOT PART OF
WHAT'S BEFORE YOU TODAY.
BUT YOU CAN SEE HOW SOME OF
THESE TERMS CLEARLY WOULD AFFECT
AND FACILITATE A WATER FIX
PROJECT IF IT WERE TO GO FORWARD.
FOR EXAMPLE --
THE ABILITY.
TO ISSUE NEW WATER SYSTEM
FACILITY REVENUE BONDS FOR A NEW
FACILITY CLEARLY THAT WOULD BE
ESSENTIAL IF A WATER FIX PROJECT
WERE TO GO FORWARD --
EXTENDING THE CONTRACT TERMS TO
FINANCE AIMING A PROJECT
FINANCING OF A PROJECT CLEARLY
WOULD BE ESSENTIAL.
SO I THINK ONE WAY THAT MIGHT BE
HELPFUL TO THINK ABOUT THIS IS --
SOME OF THE PROVISIONS IN THESE
AMENDMENTS BEFORE YOU.
WOULD WOULD FACILITATE AND
PROBABLY BE NECESSARY FOR WATER
FIX PROJECT TO GO FORWARD.
BUT THESE PROVISIONS WOULD ALSO
FACILITATE AND BE NECESSARY FOR
THE EXISTING OPERATIONS OF THE
STATE WATER PROJECT WHETHER OR
NOT WATER FIX GOES FORWARD.
SEVEN FINALLY TURNING TO PAGE
SIX THESE ARE JUST SOME
OVERSIGHT QUESTIONS WE WANTED TO
FIGHT FOR YOU TO CONSIDER AS
YOU'RE THINKING ABOUT THESE
ISSUES AND PROCEEDING WITH THE
HEARING TODAY --
WHAT ARE THE PRIMARY PROBLEMS
THESE CONTRACTS ARE AMENDMENTS
ARE INTENDED TO ADDRESS AND DO
YOU FEEL THAT THEY ADDRESS THEM?
ARE THERE OTHER PROBLEMS OR
ISSUES THAT AREN'T ADDRESSED BY
THESE CONTACT AMENDMENTS AND WHY
NOT AND HOW WILL THOSE BE
ADDRESSED --
WAS THERE ADEQUATE PUBLIC
INVOLVEMENT AND INPUT IN
DEVELOPING THESE CONTRACT
AMENDMENTS.
HOW WILL THESE AFFECT THE RATE
PAYERS WHO ULTIMATELY WILL PAY
THE PRICE FOR ANY CHANGES AND
BRAND EXISTING OPERATIONS?
AND NOT ONLY HOW MUCH THEY PAID
BUT WHAT THEY PAY FOR THE WATER
THEY RECEIVE WILL THESE CONTRACT
AMENDMENTS CHANGE THE AMOUNT OF
WATER THAT --
THE ULTIMATE END USERS WILL
RECEIVE.
WHAT'S THE STATUS OF OTHER
CONTRACT AMENDMENTS IN
PARTICULAR THOSE AMENDMENTS
RELATED TO WATER FIX WHY WERE
THOSE NOT INCORPORATED HERE AND
AND MOVING INTO THE LAST PIECE
WHAT IS THE OPPORTUNITY FOR
LEGISLATIVE INVOLVEMENT.
NOT ONLY ON CONTRACT CHANGES BUT
OVER ALL OVER THE STATE WATER
PROJECT OPERATIONS AND DO YOU
FEEL THAT YOU HAVE ADEQUATE
OVERSIGHT OPPORTUNITIES AND IF
NOT HOW MY TO PURSUE INCREASING
THOSE OPPORTUNITIES.
SO WITH THAT MADAM CHAIR HAPPY
ANSWER ANY QUESTIONS NOW AND
CERTAINLY WILL STAY OF OTHER
QUESTIONS ARISE LATER.
VERY MUCH QUESTIONS OF COMMITTEE.
TALK TO PAM.
THANK YOU SO MUCH FOR YOUR
PRESENTATION WHILE I'M GOING TO
SUGGEST JUMP DOWN TO EAT YOU
HAVE HIS RECOMMENDATION.
AS YOU KNOW WHEN YOUR
RECOMMENDATIONS ARE ONE THINGS
IS --
ADEQUATE OPPORTUNITIES FOR
LEGISLATIVE --
WHAT BE TOLD AS WE HAVE THIS
INFORMATIONAL HEARING THEY HAVE
THESE CONTRACT AMENDMENTS WE
DON'T EVEN VOTE ON THEM?
THEY'RE OFF TO THE RACES IN ALL
THIS SIXTY DAYS.
SO.
WHAT?
WHAT DO YOU SEE AS THE L. A. L.
AS TERMS OF OUR LEGISLATIVE
OVERSIGHT --
THESE --
CONTINUES IT PROPRIA WE HAVE --
YOU MADE MENTION THAT ONE OF THE
THANK YOU KNOW WHEN THE ITEM
THIS IS ACTUALLY --
BUT NOT NOT ONLY OF COURSE THE
TIME PERIOD BUT ALSO BE ABLE TO
JUST SEARCH THE FORM YOU
CONTRACTS FRIGHTENED AND PUT NEW
BONDS RIGHT FOR FOR THINGS.
AND THOSE ARE CONTINUES THE
APPROPRIATE SO WHAT WHAT DO YOU
SEE IN TERMS OF FROM THE L. AS
PERSPECTIVE AS TO HOW WE CAN
EXERCISE.
ADEQUATE OVERSIGHT OVER THESE
ACTIONS OR IS IT D. W. R. TO
CONTRACTORS OFF DOING THEIR OWN
THING AND WE JUST SIR WATCH ON
THE SIDELINES.
YEAH AND OUR OFFICE HAS
HISTORICALLY IN THE PAST
RECOMMENDED --
EXPLORING BRINGING THIS ON TO
BUDGET JUST FOR INCREASED
LEGISLATIVE OVERSIGHT IT'S IT'S
QUITE A LOT OF MONEY AND AND
QUITE A SIGNIFICANT --
STATE.
INVESTMENT AND CONCERN --
FROM.
CANCER NOT AS A IMPLYING THAT
THERE ARE CONCERNS BUT JUST AS
AN ISSUE THAT THE LEGISLATURE
AND STATE --
SHOULD SHOULD BE EVER SINGS
ABOUT SOMETHING OUR OFFICE HAS
HAS RECOMMENDED IN THE PAST JUST
FOR GREATER UPSET THAT COMES
THROUGH THE ANNUAL BUDGET
PROCESS.
YOU DO HAVE THE OPPORTUNITY NOW
TO APPROVE POSITIONS BUT THAT'S
REALLY THE THE NEXUS WITH THE
BUDGET COMMITTEE AT THIS POINT --
THE FUNDING AGAIN IS
CONTINUOUSLY PURPOSE SO THAT
WOULD BE ONE THING YOU COULD
EXPLORE.
AND DO WE HAVE ANY I MEAN.
TONE ONE LEVEL DOWN THERE
FLOATING BONDS OVER IT TO HAVE
ANY FINANCIAL LIABILITY FOR ANY
OF THESE THINGS SO WHAT HAPPENS
IS. ONE STOPS AYING RIGHT WE
HAVE THIS HUGE INFRASTRUCTURE
SOMEONE STOPS PAYING THE BOND IS
IS THERE SOME POINT WITH THE
STATE OBLIGATED TO STEP IN AND
RESCUE.
OF CONTRACTORS OR IS GOD FORBID
SOMETHING HAPPENS I MEAN WHAT'S
OUR LIABILITY IS A STATE.
EVEN THOUGH TECHNICALLY THE
CONTRACTORS PAYING FOR THAT SET
HER UP BUT DO WE HAVE FISCAL
LIABILITY --
FOR ANY OF THIS IS SOMETHING
BLOWS UP QUESTION I THINK IT'S
ONE I I'M THAT MAY BE
APPROPRIATE TO ASK THE DB ARE
LAWYERS WHO ARE HERE IN THE ROOM
AND HOPEFULLY COMING UP I'M.
YOU KNOW I THINK THE WAY IT HAS
BEEN EXPLAINED TO US IS THAT THE
CONTRACTS ARE WRITTEN SUCH THAT
IF ONE OF THE CONTRACTORS
DEFAULTS THAN THOSE COSTS TO
FREE THEM WOULD SHIFT TO THE
OTHER CONTRACTORS THAT THAT THEY
ARE -- KIND
OF THE PROJECT ITSELF MUST COVER
IT BUT AGAIN AS WE SAW WITH
ORVILLE THIS YEAR IT'S THERE'S
SOME SIGNIFICANT LIABILITIES
THERE SO --
YEAH I ATE AT NOT BEING THE WAY
I DON'T WANT TO ADDRESS THAT BUT
I I THINK IT'S AN EXCELLENT
QUESTION WHAT APPRECIATE THAT
BECAUSE WELL CERTAINLY HOPE IT
NEVER HAPPENS --
WHEN THE FISCAL COLLAPSE HAPPEN
IN THE COUNTRY WE HAD THIS WHOLE
INTERLOCKING WEB RATE BECAUSE
THEY'RE ONES IN THE SAME
INDUSTRY INSURING EACH OTHER IT
CETERA SO?
WHAT HAPPENS YOU KNOW IT'S A
DOMINO WHAT HAPPENS IS ONE
CONTRACTOR THAT LEADS TO ANOTHER
CONTRACT AT LEAST ANOTHER CAT
BECAUSE WE'RE ALL THE WATER
BUSINESS RIGHT SOMETHING HAPPENS --
THE AND THEN THIS IS A STATE
WHAT HAPPENS WHEN THERE ISN'T
ENOUGH MONEY.
IS THE STATE HAVING THIS IS THE
STATE GOING TO HAVE TO STEP IN.
I THINK I THINK IT'S A GREAT
QUESTION AND SAY OBVIOUSLY HAS A
BIG INTEREST IN MAKING SURE THAT
ITS RESIDENTS HAVE WATER IS
RIGHT.
OKAY SO THAT THAT WOULD BE.
BEDFORD RATIONALE FOR US BEING
EXERCISING MORE OVERSIGHT.
ABSOLUTELY THANK YOU.
I DON'T KNOW THAT WE NEED A
RATIONALE --
QUITE FRANKLY SENATOR PAN
BECAUSE I DON'T THINK ANYONE
SHOULD EVER DIMINISH OR UNDER
ESTIMATE.
THE FUNDAMENTAL ROLE THE
RESPONSIBILITY OF THE
LEGISLATURE AROUND.
LEGISLATIVE AND BUDGETARY
OVERSIGHT.
ANY OTHER QUESTIONS OF LA L..
ASSEMBLYMEMBER FRASIER THANK YOU
MADAM CHAIR SO WHEN YOU LOOK AT
THE CONTRACT AMENDMENT WAS A ANY
OTHER CASH BENEFIT ANALYSIS DONE
THAT ACTUALLY PROVE THAT IT
NEEDED TO BE AMENDED I MEAN
WE'RE LOOKING AT TWENTY THIRTY
FIVE AND TWENTY FORTY FIVE
VARIOUS DATES CENTER DATE PLEASE
CONTRACTS AND WHY.
NOW -- YEAH
I THINK I'M I'M SURE THE THE
SUBSEQUENT PANELISTS WILL
ADDRESS THAT I THINK ONE OF THE
BIG RATIONALES IS --
THAT.
THE INDIVIDUAL CONTRACTORS OFTEN
TAKE OUT BONDS IN ORDER TO
FINANCE SOME OF THE COSTS OF THE
REPAIRS ST I'M GOING OPERATIONS
AND MAINTENANCE AND THE SHORTER
TERM -- ON
YOUR CONTRACT THE HARDER IT IS
TO GO GET FINANCING FOR THOSE
TYPES OF PROJECTS AND HIGHER
INTEREST COSTS THAT THOUGH THAT
THE REPAIRS ULTIMATELY HAVE TO
PACE I THINK THAT'S ONE OF THE
STRONGEST RATIONALES THAT WE'VE
THAT WAS PRESENTED TO US BUT
AGAIN I THINK YOU'LL HEAR SOME.
ABOUT FROM THE CONTRACTORS AND
SUB CMPANIONS.
THINK MY CONCERN IS THAT WHEN WE
LOOK AT SONS IN SOME INSTANCES
ENVIRONMENTAL.
PROTECTIONS.%
ARE SUSPECT IN AND PUT IT PUT IT --
TO RISK BECAUSE OF A DEBT
SERVICE MAYBE --
YOU KNOW THAT THAT THE
ENVIRONMENT IN THE THE FISSION
POSSIBLY.
IT WE DON'T HAVE THOSE --
THAT INFORMATION RIGHT NOW AND
YOU KNOW SO IT'S LIKE A WE
DEFINITELY JUST ON A DEED OF
YOURS --
MERCY IS A AS A LEGISLATURE TO
THAT THEY'RE GOING TO DO THIS
AND THE BEST --
YOU KNOW INTEREST OF PROTECTING
US -- HAVING
OUR BACKS SO THAT WHEN SOMETHING
GOES WRONG.
YOU DON'T.
ULTIMATELY THERE TO LOOK AT US.
IF SOMETHING GOES WRONG AND I
THINK YOU HAVE TO USE.
A HIGH SPEED RAIL AS A AS AN
EXAMPLE WHEN YOU WHEN YOU LOOK
AT THE PUBLIC WAS TOLD ONE THING.
NOW IT'S COSTING ANOTHER.
AND WHO'S GOING TO BEAR THE
BRUNT OF THAT.
IF IT DOES GO IN PEOPLE A
KNOWLEDGE THAT THEY'RE NOT GOING
TO PAY THAT DEBT SERVICING THE
PAPER OUT IN HIS HEAD.
CENTER PANDAS OPENLY STATED.
WE'RE LEFT HOLDING THE BAG.
WE HAVEN'T DONE MEGAPROJECTS
WELL YET.
AND SO WE'RE LOOKING AT HOW DO
WE GO FORWARD.
WITH NOT TO EXCEED THE COSTS.
AS A FORMER CONTRACTOR.
AND MAKE SURE THAT THE RATE
PAYERS.
GET A VALUE FOR THEIR DOLLAR AND
NOT IF HE COMES INTO A DROUGHT
YEAR.
THAT DOES SERVICE DOESN'T STOP
AND IF THEY'RE NOT TRANSFERRING
WATER.
OKAY WATER PRICES GO UP TO PAY
FOR THAT DEBT SERVICE AND SOYOU
KNOW WE'VE BEEN A VICIOUS CYCLE
AND SO I'M JUST WONDERING.
HAVE YOU LOOKED AT ALL OF THOSE
ASPECTS WHEN THEY LOOK AT LONG
TERM EFFECTS THROUGH VARMINT THE
ECONOMY --
AND THE SUBSEQUENT POSSIBILITY
THAT --
SOMEBODY WAS OUT --
SO IF YOU'RE ASKING ABOUT YOU
ASKING ABOUT THE WATER FIX
PROJECT IN PARTICULAR OR I'M A
CLEVELAND.
GENERAL IS THAT I'M GONNA JUST
CALL IT IS A OVERALL THE GENERAL
CONSENSUS BECAUSE IT YOU KNOW
NOT OLD TWENTY NINE CONTRACTS.
WOULD BE AFFECTED.
BUT I THINK IT'S FEATURED THE
WE'RE LOOKING AT THAT WE'RE
SAYING.
DOES THIS EQUATE. TO UP BY
NECESSITY RIGHT NOW WHERE THE
LEGISLATURE SHOULD.
WE AND I MEAN HUNDRED FIFTY
MILLION DOLLARS TO BE ABLE TO GO
IN BONN WITHOUT.
PERMISSION OF THIS LEGISLATURE.
WE GIVE US AGENCIES LESS OF
FORTY SALUCES WHO SEEMS LIKE
IT'S A KIND OF UNPRECEDENTED.
YEAH I AM I WILL DEFER SOME IN
TO THE ACTUAL CONTRACT JUST TALK
ABOUT WHAT THE FINANCIAL BURDEN
IS ON THEM ON IN TERMS OF THE
FINANCING I MEAN I IT'S IT IS.
CLEARLY STILL YEARS AWAY THE
EXPIRATION I DO THINK THEY ARE
THEY THEY START TO GET SQUEEZED
DOES ACTION DOES ACTION NEED TO
HAPPEN TODAY --
TO AVOID THAT SQUEEZE WITH
ANOTHER YEAR OR TWO WHAT THE
FISCAL IMPLICATIONS WOULD BE YOU
KNOW I THINK I THINK I WOULD
HAVE TO DEFER TO THEM TO MAKE
THAT CASE --
I THINK CLEARLY AS I STATED
EARLIER REGARDLESS OF WHETHER
WATER FIX GOES THROUGH OR NOT
FROM AN OPERATIONS PERSPECTIVE
OF THE EXISTING PROJECT AT SOME
POINT.
THESE --
EXISTING CONSTRAINTS WILL START
TO BE PROBLEMS AND WHEN WILL
NEED TO BE ADDRESSED.
SENATOR PAN YOU HAVE THE WHOLE
THING TOGETHER JOHNNY YES THANK
YOU VERY MUCH --
FIRST OF ALL I'D LIKE TO THANK
THE CHAIR FOR SAYING THAT THE
PURPOSE OF THIS HEARING IS NOT --
TO CAST ANY TYPE OF BOAT OR ANY
APPROVAL OF THE WATER FIX BUT
RATHER TO LOOK AT THAT CONTRACT
EXTENSION AND I TINK THAT'S
REALLY IMPORTANT FOR US TO HAVE
THAT ON THE RECORD --
SO I THINK THE CHAIR FOR THAT --
pWE'RE REALLY --
LOOKING TO YOU FOR SUGGESTIONS
ON HOW WE CAN HAVE MORE
OVERSIGHT OVER THIS PROJECT --
I DON'T MY QUESTION TO YOU WILL
BE WHETHER THERE ARE ANY OTHER
SIMILAR STATEWIDE INFRASTRUCTURE
PROJECTS THAT ARE SOMEWHERE
WHERE IT'S THE PRIVATE SECTOR IS
IS PAYING AND THAT.
PAYS YOU GO AND THE BENEFICIARY
PAYS AND SO ON AND SO FORTH WE
LOOK AT EVERYTHING ELSE THAT THE
LEGISLATURE IS USED TO HAVING --
OVERSIGHT OVER ALL OF OUR
TRANSPORTATION PROJECTS --
HIGH SPEED RAIL A GOOD EXAMPLE
THAT ASSEMBLY MEMBER FRAZIER
USED BY AUTHOR THAT AND AND AND
NOT PROJECT WE HAD A BUSINESS
PLAN THAT MUST COME BEFORE THE
LEGISLATURE.
EVERY TWO YEARS BEFORE THERE IS
ANY FINDING THAT'S EVER
REQUESTED TOWARD THE PROJECT.
THEY HAVE TO HAVE LEGISLATIVE
APPROVAL AND IT HAS TO BE IN THE
BUDGET AND THEN THERE'S A PRE.
EXPENDITURE PROCESS WHERE
APPROPRIATED AUTHORITY MUST COME
BACK TO THE LEGISLATURE WITH THE
FINAL PLAN BEFORE THEY EVER CUT
A CHECK.
AND WITH THIS PROJECT WE HAVE
THIS HEARING THAT'S IN PLACE AND
THEN THERE WILL BE NEGOTIATIONS
THAT TAKE PLACE WITH D. W. A. R.
AND THE AND THE CONTRACTORS BUT
LARGELY WE ARE LEFT OUT OF THIS
PROCESS.
AND WE JUST AS A LEGISLATURE
WENT THROUGH THE THE CHANGES
WITH REGARD TO P. JEANNIE AND
OUR ENERGY PROVIDERS BECAUSE OF
THE WILD FIRES THAT OCCURRED.
AND IT IS IN THIS IS A SIMILAR
THING WHERE WE'RE TALKING ABOUT
THE STATE'S WATER GRID SIMILAR
TO THE ENERGY GRID AND EVERYBODY
HAS AN INTEREST IN IT.
ANNA SENATOR PAM POINTED OUT OF
SOMETHING DOES GO WRONG --
WE ARE WE ARE GOING TO BE
ACCOUNTABLE AND WE ARE GOING TO
HAVE TO BAIL OUT WHOMEVER TO
MAKE SURE THAT WATER CAN STILL
BE DELIVERED AS IT NEEDS TO BE
DONE BECAUSE WE CANNOT LIVE
WITHOUT IT OBVIOUSLY.
SO I THINK WE ARE ALL LOOKING TO
YOU. TO MAKES SOME SUGGESTIONS
AS TO WHAT MORE WE SHOULD BE
DOING AND WHAT ARE SOME OTHER
SIMILAR PROJECTS AND AND WHAT
THAT OVERSIGHT STRUCTURE LOOKS
LIKE SO I THANK YOU FOR YOUR
PRESENTATION.
THANK YOU CENTER AND THAT'S
CERTAINLY SOMETHING WE WOULD BE
MORE THAN HAPPY TO ENGAGE AS
YOUR AS YOUR ADVISORS ON THAT I
THINK -- ON
THE RECORD WHAT WE HAVE RIGHT
NOW IS IS BRINGING THE ON BUDGET
WHICH I THINK WOULD WOULD
INCREASE TRANSPARENCY AND AND
YOU'RE OVER SEVERAL QUITE A BIT
BUT SPECIFICALLY RELATED. TO
NINE AM.
OTHER STATE WATER PROJECT --
PROJECTS WERE HAPPY TO WORK WITH
YOU AND I THINK ONE IMPORTANT
POINT. TO YOUR POINT ABOUT --
MADE HAPPENING OFF BOOKS AND
BETWEEN TWO TO BR IT'S IT'S NOT
THE RIVATE SECTOR IT'S ME IT'S
PUBLIC WATER AGENCIES AND AND
PUBLIC RATE PAYERS CALIFORNIANS
ARE PAYING SO MUCH ENERGY GREAT
IN THAT WAY SO.
YOU ELEVATES THE IMPORTANCE OF
OF STATE OVERSIGHT EVEN MORE.
YEAH I THINK TO THAT POINT YOU
KNOW WE DID HAVE A COLLEAGUE OF
SUPERMAN ASSEMBLY MEMBER BLOOM
WHO.
INTRODUCED THE BILL VERY LATE IN
THE PROCESS BEFORE WE ADJOURN
THAT BE ATTEMPTED TO BEGIN TO
STIPULATE WAYS IN WHICH THE
LEGISLATURE.
SHALL BE INVOLVED --
L. A. L. --
THROUGH THE COURSE OF INTERIM --
TO TO HAVE YOU --
PROVIDE US WITH --
MORE OPTIONS AS REQUESTED BY
CENTER COUNTY RD BACK TO A
DOCTOR PAN. TO JUST ONE FINAL
QUESTION --
BECAUSE I'D MAKE NOTE THAT THE
LAW SAYS WE HAVE TO HAVE THIS
HEARING AND THEN SIXTY DAYS OF
THE LEAST.
THEY CAN FINALIZE SO AND WE'VE
HAD SOME LETTERS FROM PEOPLE
INDICATING THAT THE MEN MEN SIR
NOT YOU'LL STILL VEGAS CENTERS
SO THAT I SOON YOU'VE LOOKED AT
THE M. A. CONTRACTS AMENDMENTS
AND SO FORTH.
IS YOUR VIEW THAT THOSE
AMENDMENTS RIGHT NOW ARE
ESSENTIALLY THAT THE FINAL FORM
OR DAYS STILL US LOTS OF STUFF
STILL NEGOTIATE.
FROM THIS FROM TODAY IN WHICH
WE'RE HAVING HERE AND ALERTS AND
WILSON LAST YEAR WE ARE WHEN
THEY COME UP HERE BUT IS THE
VERSION SO YOU A DIVERSIONS YOU
REVIEWED ARE THOSE ESSENTIALLY
THE FIRE.
PRETTY MUCH THE FINAL VERSIONS
THAT'S HOW IT'S BEEN PRESENTED
TO US I BELIEVE THEY'VE BEEN
NEGOTIATING FOR TWO YEARS AND
HAD MULTIPLE PUBLIC OKAY BUT THE
FINAL VERSIONS ARE WHAT WE'RE
DISCUSSING MY UNDERSTANDING
AGAIN I I WOULD DEFER TO THEM
THAT'S ME OKAY.
ALL RIGHT OKAY THANK YOU AND
JUST TO CLARIFY ITS FIVE YEARS
TO TWENTY THIRTEEN THEY BEEN
INVOLVED IN.
THE PROCESS.
ANY ONE ELSE.
OKAY THANK YOU WILL HAVE YOU SET
THE TABLE --
DIRECTING THEM.
AND I KNOW YOU HAVE SOME OTHER
COLLEAGUES FROM THE DEPARTMENT
FEEL FREE --
TO BRING EVERYONE TO THE TABLE.
THANK YOU VERY MUCH FOR JOINING
US THIS MORNING.
GOOD MORNING GOOD MORNING --
MADAM CHAIR AND MEMBERS --
THANK YOU FOR THE OPPORTUNITY.
TO APPEAR BEFORE YOU TODAY.
MY NAME IS CARLA NEMETH I AM THE
DIRECTOR OF TE DEPARTMENT OF
WATER RESOURCES.
AND JOINING ME HERE TODAY IS
JOEL LEDESMA HE'S THE DEPUTY
DIRECTOR OVER THE STATE WATER
PROJECT.
AND STEVE COLL IN OUR DEPARTMENT
ATTORNEY WHO PROVIDE LEGAL
SERVICES RELATED TO THE CONTRACT
EXTENSION AMENDMENT.
WE ARE HERE TO PRESENT TO YOU
THE PROPOSED CONTRACT AMENDMENT
THAT WOULD EXTEND THE STATE'S
TWENTY NINE WATER CONTRACTS
BEYOND THEIR EXISTING TERMS.
UNDER EXISTING AGREEMENTS THE
TERMS OF THESE VITAL WATER
CONTRACTS BEGIN TO EXPIRE IN.
TWENTY THIRTY FIVE THE AMENDMENT
BEFORE YOU TODAY WOULD EXTEND
THESE.
TWENTY EIGHTY FIVE THE
LEGISLATIVE ANALYST'S GAVE A
QUICK OVERVIEW OF THE STATE
WATER PROJECT AND I WANT TO
BRIEFLY ADD THAT THE STATE WATER
PROJECT EXTENDS FROM PLUMAS
COUNTY IN THE NORTH TO RIVERSIDE
COUNTY IN THE SOUTH.
IT SERVES THE SACRAMENTO VALLEY
THE NORTH AND SOUTH BAY AREA THE
SAN JOAQUIN VALLEY THE CENTRAL
COAST AND SIGNIFICANT REACHES OF
SOUTHERN CALIFORNIA INCLUDING
THE INLAND EMPIRE.
IT'S DAMS RESERVOIRS PUMPING
PLANTS HYDROELECTRIC FACILITIES
AND HUNDREDS OF MILES OF
AQUEDUCT.
PROVIDE NEARLY TWENTY SEVEN
MILLION PEOPLE THAT'S TWO THIRDS
OF CALIFORNIA'S POPULATION WITH
SOME PIECE OF THEIR WATER SUPPLY.
THE CONTINUED SUPPLY OF WATER
FROM THE STATE WATER PROJECT
WILL REMAIN AS VITAL FOR THE
NEXT SIXTY YEARS AS IT HAS FOR
THE LAST SIXTY YEARS.
AND THIS AMENDMENT WILL ENSURE
THE FINANCIAL STABILITY NEEDED
TO DO THIS. FOR THE AMENDMENT
BEFORE YOU TODAY WITH BLANKS IN
THE EXISTING TERM OF THE WATER
SUPPLY CONTRACTS BY FIFTY YEARS.
THESE WERE FIRST ENTERED INTO IN
THE BEGINNING OF NINETEEN SIXTY
AND BEGAN EXPIRING IN.
TWENTY THIRTY FIVE YOU MAY ASK
WHY THIS AMENDMENT IS NEEDED IN
TWENTY EIGHTEEN WHEN THE TERM
DOESN'T EXPIRE UNTIL.
TWENTY THIRTY FIVE SINCE THE
LATE NINETEEN SIXTIES THE
CAPITAL COSTS OF THE STATE WATER
PROJECT HAVE BEEN FINANCED
PRIMARILY THROUGH THE ISSUANCE
OF REVENUE BONDS.
TODAY WITH THE FIRST CONTRACTS
EXPIRING IN TWENTY THIRTY FIVE
THE DEPARTMENT IS LIMITED TO
SELLING BONDS WITH MATURITY
DATES THAT EXTEND ONLY TO THAT
DATE.
AS A RESULT BONDS SOLD THIS YEAR
WOULD HAVE MATURITY DATES THAT
EXTENDED ONLY SEVENTEEN YEARS.
AND BONDS TO BE SOLD WILL HAVE
THE MATURITY --
BONDS TO BE SOLD NEXT WE'LL HAVE
MATURITY DATES THAT EXTENT ONLY
SIXTEEN YEARS RATHER THAN THE
THIRTY YEARS AS IS CUSTOMARY FOR
SUCH REVENUE BONDS.
THIS SHORTER REPAYMENT PERIOD
INCREASES OUR ANNUAL REPAYMENT
COSTS THAT WE EXTEND TO THE
CONTRACTORS AND RATEPAYERS IN
CALIFORNIA.
AND THE US --
HAS THE ULTIMATE POTENTIAL OF IN.
OF HOW WE ACTUALLY RUN THE
EXISTING STATE WATER PROJECT.
OUR FACILITIES ARE APPROXIMATELY
FIFTY YEARS OLD AND MANY ARE IN
NEED OF CAPITAL UPGRADES AND
REPAIRS.
ANNUALLY THE DEPARTMENT OF WATER
RESOURCES UNDERTAKES CAPITAL
PROJECTS TO DO JUST THAT.
SOME EXAMPLES ARE THE RECENT
SEISMIC REINFORCING OF PARIS
DAMN.
THE RECONSTRUCTION OF THE FAMILY --
POWER PLANT IN THE AFTERMATH OF
A DAMAGING FIRE.
AND THE RECONSTRUCTION OF THE
SPILL WAY SAID ORVILLE DAMN.
THESE REALLY JUST SCRATCH THE
SURFACE OF THE REPAIRS AND
REFURBISHMENTS AND REPLACEMENT
THAT WE ANTICIPATE --
NECESSARY ON FOUR HUNDRED PLUS
MILES OF THE AQUEDUCT THREE
HUNDRED MILES OF PIPELINES INTO
THE THIRTY TWO PUMPING AND
HYDROELECTRIC GENERATING PLANTS.
LIDDY TO EFFECTIVELY AND
AFFORDABLY FINANCE THESE
PROJECTS THROUGH THIRTY YEAR
BONDS IS VITAL TO THE STATE
WATER PROJECT.
THE PUBLIC WATERAGENCIES AND
THEIR RATE PAYERS.
IN ADDITION TO EXTENDING THE
CONTRACTS THE AMENDMENT WOULD
ELIMINATE THE NO LONGER NEEDED.
AMORTIZATION SCHEDULES OF
REPAYMENT AND INSTEAD IT WOULD
SHIP THIS AMORTIZATION TO A PAY
AS YOU GO SYSTEM.
AND THIS EFFECTIVELY BETTER
MATCHES REVENUES WITH
EXPENDITURES.
IT ALSO INCREASES ARE OPERATING
OF RESERVES THAT ARE AVAILABLE
TO THE STATE WATER PROJECT FROM
THIRTY MILLION. TO ONE HUNDRED
FIFTY MILLION AN AMOUNT WHICH
BETTER REFLECTS THE REALITY OF
OPERATING A WATER UTILITY OF
THIS SIZE.
AND IT WAS DERIVED FROM AN
ASSESSMENT OF SOME SHE WAITED
UTILITIES AND AN ESTIMATE OF
FUTURE OPERATING EXPENSES.
IT ALSO ESTABLISHES A FINANCE
COMMITTEE TO RECOMMEND FINANCIAL
POLICIES SUCH AS APPROPRIATE
DEMINT DEBT LIMITS AND CRITERIA
FOR PROJECTS TO BE FINANCED OR
PAID FOR IN THE YEAR OF THE
INCURRED COST.
AND FINALLY --
THE AMENDMENT BEFORE YOU
ESTABLISHES A REINVESTMENT
ACCOUNT.
THIS WOULD FUND SOME OF THE
CAPITAL PROJECTS IN LIEU OF
ISSUING ADDITIONAL REVENUE BONDS
AND A SUPPORT ACCOUNT THAT WOULD
FUN ACTIONS THAT OTHERWISE WOULD
NOT BE CHARGEABLE TO THE WATER
CONTRACTORS AS WATER SUPPLY
CHARGES.
I DO WANT TO TOUCH BRIEFLY ON
THE THE THEME OF THE INTER
RELATEDNESS OF THE CONTRACT
EXTENSION TO THE WATER FIX
PROJECT.
AND THE AMENDMENT THAT IS THE
CONTRACT AMENDMENT THAT IS UNDER
WAY IT RELATED TO THAT PROJECT.
I KNOW THERE HAS BEEN MUCH
DISCUSSION ABOUT IT AND IT'S IT
IS VERY IMPORTANT TO EMPHASIZE
THAT WHAT'S BEFORE YOU TODAY IS
ESSENTIALLY --
IT'S CRITICAL TO THE FINANCIAL
UNDERPINNING OF THE STATE WATER
PROJECT AND OUR ABILITY TO RUN
THE LITERALLY BILLIONS OF
DOLLARS OF ASSETS WE ALREADY
HAVE IN THE GROUNDS THAT ARE
MOVING WATER ALL OVER CALIFORNIA.
WATER FIX AS I MENTIONED HAS ITS
OWN SEPARATE CONTRACT AMENDMENT
PROCESS THAT IS SIMILAR TO THE
WAY WE'VE HANDLED OTHER PROJECTS
THAT HAVE BEEN BUILT.
RECENTLY THAT SUPPORT THE STATE
WATER PROJECT THAT INCLUDES THE
SOUTH BAY AQUEDUCT IT INCLUDES
THE EAST BRANCH OF THE AQUEDUCT
DOWN IN SOUTHERN CALIFORNIA AND
IT INCLUDES --
PORTIONS OF THE COASTAL AQUEDUCT
THAT SERVE THE COAST A PORTION
OF SOUTHERN CALIFORNIA --
CENTRAL CALIFORNIA RATHER.
SO IT'S NOT UNCOMMON THAT THE
DEPARTMENT PURSUES A SEPARATE
CONTRACT AMENDMENT WHEREBY WE
ESTABLISH HOW COST FOR THAT
PARTICULAR PROJECT WOULD BE
ALLOCATED AMONG ITS CONTRACTORS
AND CHARGED.
THAT IS THE FUNDAMENTAL PURPOSE
OF AND AS FOLKS HAVE MENTIONED --
THAT IS --
IS INTERRELATED BUT VERY MUCH
SEPARATE FROM THE NEED FOR THE
CONTRACT EXTENSION IN THE MET
AMENDMENT THAT WE PRESENT BEFORE
YOU TODAY --
I'D BE DELIGHTED TO ANSWER ANY
QUESTIONS YOU HAVE ON THE
AMENDMENT BEFORE YOU TODAY AND
AND OUR PROCESS ON THE WATER FIX
AMENDMENT AS WELL.
THANK YOU VERY MUCH.
THANK YOU VERY MUCH --
DIRECTOR I'M GOING TO OPEN IT UP
TO MY COLLEAGUES BUT I WANT TO
START BECAUSE IT REALLY IS A
FOLLOW UP --
TO FAR LAST OPPORTUNITY --
TO HAVE A CONVERSATION ABOUT
THIS -- AT
THE JULY THIRD HEARING AT THAT
HEARING I ASKED ABOUT THE IMPACT.
OF THE WATER FIX PROJECT TO RATE
PAYERS AND A REPRESENTATIVE FROM
YOUR FROM YOUR DEPARTMENT.
RESPONDED THAT QUOTE A REVISED
ESTIMATE WAS IN THE WORKS IN THE
LEGISLATURE WOULD HAPPEN BY THE
END OF THE SUMMER I PUSHED HARD
TO GET A SENSE OF TIMING.
I THINK I OFFERED THE SEASON'S
OPTION AND I WAS TOLD BY THE END
OF SUMMER --
WE ARE NOW.
IN THE SECOND WEEK OF SEPTEMBER
AN ODD. TO MY KNOWLEDGE --
SUCH REPORT HAS NOT BEEN SHARED
WITH THE LEGISLATURE I'D LIKE TO
KNOW WHY.
AND WHEN WE CAN EXPECT IT.
YOU CAN EXPECT US SENATOR
MITCHELL AND THAT WAS ME WHO
PROVIDED THAT RESPONSE AND YOU
CAN EXPECT THAT NEXT WEEK
EXCELLENT THANK YOU WITH THAT
I'LL OPEN UP TO COMMITTEE
MEMBERS I HAVE A LIST OF
QUESTIONS BUT I WANT TO FOR YOU
THE OPPORTUNITY.
FIRST.
DON'T EVERYONE JUMP AT ONCE I
WILL GO AHEAD SENATOR FULLER
FOLLOWED BY MINING AND PAN --
FULLER -- TO
ME IT SEEMS LIKE WE'VE KIND OF
GOT TWO QUESTIONS BEFORE US HERE
THAT WE'RE TRYING --
TO LAY OUT --
SO THAT WE CAN MOVE FORWARD.
WITH WHATEVER WE'RE GOING TO DO
AT THE END OF THIS MEETING
THAT'S DIFFERENT THAN WHAT WE'RE
DOING IN THIS OVERSIGHT HEARING.
AND IN THE WAY OF MAYBE MORE
OVERSIGHT OR DIFFERENT OVERSIGHT.
UP ONE IS --
WHAT THE EFFECT ON THE LIST CALL
IT WATER GREETED AS?
HE IS -- FOR
A DAILY USE AND REGULARLY USE
ACROSS THE STATE AND THE OTHER
IS WHAT IS THE EFFECT F WATER
FIX AND ITS AMENDMENTS AND IT
SEEMS LIKE BASICALLY WE'VE LAID
OUT TO DIFFERENT OPTIONS NOW.
AND I'D LIKE TO EXPLORE FOR A
MINUTE --
ISN'T IT TRUE THAT SOME STATE
WATER CONTRACTORS HAVE ALREADY
CONTACTED YOU ASKING FOR AUTO
RENEWAL OF THEIR CONTRACT WHICH
WAS ALLOWED IN THEIR CONTRACTS
BECAUSE IT PUTS THEM IN A
DIFFICULT POSITION NOT TO BE
ABLE TO REFINANCE BEYOND
SEVENTEEN YEARS NOT.
TO I MEAN OBVIOUSLY THEY HAVE
THESE HUGE FACILITIES IF YOU
THINK ABOUT YOUR WATER PLANTS IN
YOUR YOUR DISTRICTS AND YOU KNOW
THE MILES AND MILES OF PIPELINES
AND THE EMPLOYEES AND ALL OF
THAT PEOPLE WHO.
DEPEND ON THOSE WHOLESALE WATER
SUPPLIES GETTING THEM.
THOSE AREN'T JUST GOING TO GO
AWAY SOMEBODY'S GONNA HAVE TO
FINANCE THEM AND SEVENTEEN YEARS
IS YOU CAN'T EVEN HARDLY FINANCE
HOUSE FOR SEVENTEEN YEARS MUCH
LESS.
THIS KIND OF FACILITY SO ISN'T
IT TRUE THAT SOME OF THE STATE
WATER CONTRACTORS HAVE ALREADY
ASKED FOR AUTO RENEWAL.
AS WAS ALLOWED IN A CONTRACT BUT
MY MY INFORMATION IS IS THAT
IT'S SORT OF THOSE THOSE.
THOSE REQUESTS OF SORT OF BEEN
IGNORED BY THE DB ARE BECAUSE
YOU DIDN'T HAVE THIS.
AUTHORITY TO GO FOR HIS COULD
YOU SPEAK TO THAT.
SURE IN TERMS OF YOUR PRECISE
QUESTION ABOUT A REQUEST FOR
AUTO RENEWAL I THINK I'LL DEFER
TO JOEL LEDESMA --
THE HEAD OF THE STATE WATER
PROJECT.
OKAY OR STEVE.
GOOD MORNING STEVE COLIN WITH
THE DEPARTMENT OF WATER
RESOURCES.
THE CONTRACTS A SEVENTY FIVE
YEAR LONG CONTRACTS THAT WERE
ENTERED INTO IN THE EARLY
NINETEEN SIXTIES HAD A PROVISION
IN THERE WE CALL IT AN EVERGREEN
PROVISION.
THAT WOULD ALLOW THE CONTRACTORS
AND NOTICE TO THE DEPARTMENT AT
LEAST NINETY DAYS BEFORE THE
CONTRACTS EXPIRE. TO HAVE THOSE
CONTRACTS RENEWED ON THE SAME
COST SPACES THE SAME WATER
QUALITY THE SAME DELIVERY.
SO SENATOR I THINK WHAT YOU'RE
REFERRING TO IS EVEN THOUGH THE
REQUIREMENT IS AT LEAST SIXTY
DAYS BEFORE THE END OF THE
CONTRACT YOU CAN PUT IN THIS
NOTICE.
WE'VE HAD ABOUT EIGHT OR NINE
CONTRACTORS THAT HAVE ALREADY
SUBMITTED THAT NOTICE EIGHTEEN
OR NINETEEN YEARS IN ADVANCE.
OF THE EXPIRATION OF THEIR
CONTRACT SO.
WE HAVEN'T IGNORED IT WHAT WE'VE
DONE.
IS HELD TWENTY THREE PUBLIC
NEGOTIATING SESSIONS OVER
THIRTEEN MONTH PERIOD BACK IN
THE TWENTY THIRTEEN AND IT'S A
TWENTY FOURTEEN POINT.
THIRTEEN TWENTY FOURTEEN AND THE
THINKING IS.
IT'S NICE TO GET IN A SENSE
INDIVIDUAL REQUESTS FOR RENEWAL.
THIS IS THE POOL CONCEPT OF THE
CONTRACTORS ARE CHIPPING IN.
FOR OUR DELTA FACILITIES ARE
ORVILLE FACILITIES WHAT WE CALL
OUR CONSERVATION FACILITIES.
WE NEED TO RENEW THESE CONTRACTS
ON THE SAME TERMS FOR EVERYBODY
SO THE CONTRACT IS A PROVIDED
THOSE NOTICES THAT THEY WOULD
LIKE TO RENEW.
THEY WERE PART OF THE TWENTY
NINE CONTRACTORS WHO
PARTICIPATED IN THESE --
IN THESE PUBLIC NEGOTIATIONS AND
HAVE SIGNED THE AGREEMENT IN
PRINCIPLE WHICH IS WHAT RESULTED
FROM THOSE NEGOTIATIONS.
SO WHAT'S YOUR OPINION THEN TO
ANYONE OF YOU ON THE PANELS.
THAT BY NOT ALLOWING A LONGER
WINDOW FOR WATER AGENCIES TO
PLAN AND RENEW ESPECIALLY SINCE
WHEN THESE PROJECTS WERE STARTED
IT WAS SEVENTY FIVE YEARS AND
NOW WE'RE DOWN --
TO SEVENTEEN AND MOST OF THEM
HAVE GROWN MULTIPLE IN MULTIPLES
MUCH MUCH BIGGER THAN THEY WERE
WHEN THEY STARTED [inaudible]
THAT.
PERHAPS YOU'RE ACTUALLY
ENDANGERING THE FISCAL STABILITY
OF THE PROJECTS.
MORE AS THEN BY.
LIKE BY NOT HAVING THIS HEARING
THAN BY HAVING THIS HEARING
BECAUSE I THINK THAT WAS ONE OF
THE THINGS THAT DOCTOR PAM
BROUGHT UP WAS.
IT WHAT IS THIS FINANCIAL
STABILITY IF YOU KNOW OF THE
STATE WATER CONTRACTORS AND WHAT
EVIDENCE DO WE HAVE.
THAT THEY'RE GOING WELL AND IF
YOU CONSULT WITH THE HISTORY
JACK'S --
HOW THE FINANCIAL?
STABILITY WAS BASED WAS REALLY
PRETTY STRONG --
BUT THAT WAS BASED ON A SEVENTY
FIVE YEAR CONTRACT AND THE
ABILITY FOR THEM. TO BE ABLE TO
PLAN THEIR OWN RESERVES BECAUSE
THEY HAVE ACCESS TO THE THE
WATER RATE PAYERS PROPERTY RATES
AND SO ON AND SO FORTH.
YEAH SO WHAT THE WHAT IFS ABOVE
WE DO NOTHING.
IF WE DIDN'T HAVE THIS HEARING
TODAY.
WOULD BE BE ENDANGERING THE
PROJECT MORE OR LESS.
I'D I'D ALL RESPOND TO THAT SO
WE WOULD BE ENDANGERING THE
PROJECT MORE IT'S SIMPLY PUT --
IT WITHOUT THE HEARING TODAY IT
WOULD REALLY CHALLENGE THE
AFFORDABILITY OF KNOWN PROJECTS
THAT.
WE NEED TO START BONDING FOR SO
THAT WE CAN GET THEM ONLINE.
AND CONTINUE TO TO RUN AND
OPERATE THE EXISTING SYSTEM
WITHOUT THE HEARING TODAY
ULTIMATELY THAT BECOMES LESS AND
LESS AFFORDABLE TO OUR STATE
WATER CONTRACTORS.
MANY OF THEM HAVE THEIR OWN
LOCAL PROJECTS WHICH ARE VERY
IMPORTANT AND THOSE ARE PROJECTS
THAT.
ARE MEANT TO INTEGRATE INTO
THEIR STATE WATER PROJECT'S
SUPPLIES SO.
YOU KNOW I THINK --
VERY IMPORTANT AND IT'S IT'S
VERY IMPORTANT TO HAVE THIS KIND
OF DIALOGUE WITH THE LEGISLATURE.
AND I THINK IT'S ESSENTIAL TO
THE NOT ONLY THE PHYSICAL
INTEGRITY OF THE STATE WATER
PROJECT THAT IS.
MAINTAINING ITS AFFORDABILITY
BUT ALSO THE WATER SECURITY OF
OF THE STATE OF CALIFORNIA.
SO THEN I WOULD [inaudible]
PERHAPS.
READ INTO THIS.
THAT THE SECOND PART LIKE IF WE
GO FORWARD JUST AS WE ARE AND WE
WE ALLOW THIS HEARING TO ALLOW
BUSINESS AS USUAL FOR THE STATE
WATER CONTRACTS WHICH BY THE WAY
FRANKLY SOME OF THE SEA WATER
CONTRACTORS FEEL THE NEED TO BE
OURS SOMEWHAT LIKE.
THE P. YOU SEE INDICATING RATES
TO THEM IT'S NOT REALLY THAT
PRIVATE PEOPLE COME UP WITH HOW
MUCH THEY'RE GOING TO DO BUT
REALLY WHAT THAT.
THE THE POOL COSTS WILL
ULTIMATELY BE IF THEY WANT TO
CONTINUE TO PARTICIPATE.
IT IS THE NEW WATER FIX KEYS
THAT PERHAPS WOULD BE THE
OVERSIGHT PEACE.
IF THE LEGISLATURE WE'RE GOING
TO CONTINUE TO SPEND ITS TIME
MOST WISELY AND THE OVERSIGHT
DOLLARS MOST WIDELY.
WHICH WOULD THEN BE IN ANOTHER
CONTRACT HOWEVER WE ARE ALLOWING
THAT -- TO
GO FORWARD BY GIVING THEM.
THE OPPORTUNITY TO HAVE NEW
BONDS WITH LONGER TERM SO MY
SUGGESTION AS I'M TYPING OUT MY
SUGGESTIONS AS TO THE THE STANG.
IS THAT IF YOU ARE LOOKING FOR
OVERSIGHT.
THAT IT WOULD BE SOMEWHERE
AROUND NEW BONDS BEING.
BEING RENEWED RATHER THAN THE
WHOLE STATE WATER CONTRACT AND
ITS WHOLE HISTORY WHICH MOSTLY
IS PRE EXISTING WHICH IS
OPERATING.
REALLY VERY WELL AT LEAST UP
UNTIL NOW.
AND IT WHICH CAN GO FORWARD WITH
MORE CERTAINTY AFTER THIS
HEARING TODAY IN TERMS OF LOCAL
PLANNING.
WELL IF THERE IS.
ONE THANK YOU MADAM CHAIR.
IN.-I APPRECIATE THE DIRECTORS SOME.
PRESENTATION IF IF I CAN
SIMPLIFY WHATEVER HEARD THE
URGENCY OR BENEFIT.
OF THESE AMENDMENTS MOVING
FORWARD.
IS TO ALLOW THE ISSUANCE OF
LONGER TERM BONDS THAT TRANSLATE
INTO.
LOWER COSTS AND RATES TO PAY OFF
THOSE SPONSORS THAT ACCURATE
WRECKED YES --
IN I THINK THIS WAS YOUR
RESPONSE TO CHAIR MITCHELL BUT
JUST TO BE.
CLEAR.
ARE YOU ABLE TO GIVE US ANY
ESTIMATE OF THOSE SAVINGS HOW.
THE UNIVERSE OF SAVINGS THAT MAY
TRANSLATE. TO TO RATEPAYERS.
ARM.
WITH THE ABILITY TO TO ISSUE
LONGER TERM BONDS OR WAS THAT
WHAT YOU SAID YOU'RE GETTING TO
US NEXT WEEK NO THAT'S THAT
SEPARATE --
WITH THEM OKAY YES SO SO WE DO
HAVE SOME INFORMATION --
THERE IT'S IT'S REALLY CENTERS
AROUND AT SERVICE AND WHAT OUR
ANNUAL DEBT SERVICE PAYMENT WILL
BE IF WE CONTINUE TO DELAY.
AND JUST AS A AS A MARKER IF YOU
WILL WE ANTICIPATE THE DEBT
SERVICE ON REVENUE BONDS WOULD
IN EFFECT REALLY DOUBLE --
IF WE WERE UNABLE TO EXTEND THE
CONTRACTS IN ISSUE BONDS AND AND
WEREN'T LET'S SAY LIMITED --
TO THE REMAINING TEN YEARS FOR
EXAMPLE IF WE IF WE PURSUED THIS
EXTENSION --
DISCUSSION OVER THE COURSE OF
THE NEXT SEVERAL YEARS YOU CAN
VERY QUICKLY GET TO SET
SITUATION WHICH YOU'RE DOUBLING
THAT THE DEBT SERVICE. FOR BRIAN
IS IT FAIR TO EXTRAPOLATE IF YOU
DOUBLE THE DEBT SERVICE THAT.
YOU'RE GONNA DOUBLE POTENTIAL
RATES TO REPAIRS.
OR I WOULD YOU KNOW I WOULD
DEFER TO THE PUBLIC WATER
AGENCIES THEY ARE --
THEY ARE THE ONES WHO LATELY --
ESTABLISH THE RATES THAT --
BEN AND HOW THOSE OF RATES
ACTUALLY AFFECT THEIR RATE
PAYERS AND THAT'S TYPICALLY A
MIX OF NOT ONLY STATE WATER
PROJECT CHARGES.
BUT ALSO THEIR LOCAL PROJECTS --
BUT ULTIMATELY YOU CAN
ANTICIPATE A SIGNIFICANT CROSS
COST INCREASE TO BE PASSED ALONG.
THROUGH THE STATE WATER
CONTRACTS.
THANK YOU SOON NOW SHIFTING BACK
TO THE CORRELATION WITH THE
WATER FIX.
CLEARLY WHAT YOU DESCRIBED.
IS BROADER THAN THE WATER FIX
BUT YOU'VE ALSO.
DISCUSSED OPENLY THAT THERE IS A
CORRELATION.
WHAT IS THE STATUS OF THE WATER
FIX NEGOTIATIONS IN TERMS OF
TIME TABLE [inaudible]
PUBLIC.
INPUT INTO THAT PROCESS.
AND LEGISLATIVE OVERSIGHT.
FOR ANY CONTRACTS THAT ARE
NEGOTIATED ON THE WATER FIX.
SO THE PUBLIC PROCESS ASSOCIATED
WITH THE CONTRACT AMENDMENTS ON
THE ONE THAT WE USE FOR THE
WATER FIX AMENDMENT IS THE SAME
ONE THAT WE USE FOR THE CONTRACT
EXTENSIONS WE ARE OBLIGATED TO
HOLD THOSE NEGOTIATIONS AND
PUBLIC.
THEY BEGAN --
IN JANUARY OF THIS YEAR AND WENT
THROUGH JUNE --
WE HAVE A DRAFT AGREEMENT IN
PRINCIPLE THAT IS THE THE
DOCUMENT BY WHICH OUR OUR
ATTORNEYS START --
TO RIGHT AND AND THEN THAT --
ALSO GOES THROUGH ITS OWN --
SEQUEL ENVIRONMENTAL REVIEW --
WHICH IS A PROCESS THAT IS JUST
UNDER WAY I THINK WE HAVE A
NOTICE OF DETERMINATION AS OF
MAYBE A MONTH AGO --
THOSE AS I MENTION THOSE
NEGOTIATIONS --
WERE HELD WITH PUBLIC NOTICE WE
DID GET SOME FEEDBACK --
THAT THE LEGISLATURE WAS NOT
AWARE OF THAT AND WE CAN
CERTAINLY IN THE FUTURE --
MAKE SURE THAT THE LEGISLATURES
RECEIVING THOSE KINDS OF
NOTIFICATIONS --
BUT THAT'S HE TIMELINE FOR THE
THOUGH WATER FIX AMENDMENT WE
WOULDN'T EXPECT IT --
TO BE COMPLETED UNTIL THAT THE
VERY END OF THIS YEAR.
SO THAT'S ELPFUL BUT WHAT I
HEAR IN THERE IS THAT WHILE WE
MIGHT RECEIVE SOME NOTICE.
THERE IS NO LET JUST DIRECT
LEGISLATIVE OVERSIGHT RELATED TO
THOSE NEGOTIATED AMENDMENTS ON
THE WATER FIX.
CORRECT THERE IS NOT THE
LEGISLATIVE THE INFORMATIONAL
HEARING THAT THAT YOU HAVE
ASSOCIATED WITH A CONTRACT
EXTENSION.
SO WHAT WHAT ARE THE PATHWAYS.
FOR LEGISLATIVE OVERSIGHTOF THE
WATER FIX IN THOSE NEGOTIATED
AMENDMENTS.
WELL YOU KNOW I WOULD DEFER TO
THE THE LA --
I MEAN THAT.
OVERSIGHT IS I THINK --
YOU KNOW THE THE PURVIEW OF THIS
BODY IF YOU WILL --
AND WE HAVE A HISTORY OF OF
BRINGING THAT INFORMATION --
TO IT IN THE CONTEXT OF THESE
CONTRACT AMENDMENTS BUT YOU KNOW
I WOULD FRANKLY DEFER TO THE
LEGISLATIVE BODY ABOUT --
HOW?
DO YOU WOULD WANT TO EXERCISE --
SOME DEGREE OF OF OVERSIGHT OVER
THOSE THAT AMENDMENT PROCEDURE.
THANK YOU MAYBE COULD I JUST.
TURNED TO THE LA --
AND GET YOUR RESPONSE TO THAT
QUESTION YEAH I THINK THERE IS
NO STATUTORY REQUIREMENT.
FOR LEGISLATIVE OVERSIGHT ON
THAT PROCESS RIGHT NOW.
AND SO I THINK --
HAS THE DIRECTOR MENTIONED IT IS
YOUR BEER PER VIDEO --
TO TO EXERCISE THE OVERSIGHT
THAT YOU FEEL IS APPROPRIATE
EITHER BY REQUESTING THAT THEY
COME IN HAVE OVERSIGHT HEARINGS
IN.
AND PRESENT --
OR IF THAT IS NOT SUFFICIENT AND
YOU FEEL THAT IT NEEDS TO BE
STATUTORY OR MORE RIGOROUS THAN
TO TAKE ACTION TO IMPLEMENT SOME
OF THAT.
SO THAT IS A POTENTIAL PATHWAY --
WE DID CONVENE AN OVERSIGHT
HEARING A NATURIST SOURCES IN
WATER COMMITTEE FOR IN ENDING IN
AN INFORMATIONAL HEARING.
BUT WHAT I'M HEARING YOU SAY IS
THAT.
A PATH TO EXPLORE COULD BE --
RIGHT AT THE CHECK IN AS THE
CHAIR MENTIONED THERE WAS A
PROPOSAL FROM MISTER BLOOM AND
THAT DIDN'T AND ULTIMATELY MOVER
GET ENACTED THAT WOULD HAVE
REQUIRED SOME NOTIFICATION TO
THE JAIL BC AND SOME DELAY.
BEFORE THAT COULD TAKE A FACT
AND TELL THEM THE WC HAD
REVIEWED IT.
SO -- WHILE
THAT BILL DIDN'T PASS AND AND
AND COULD BE RESURRECTED IN THE
FUTURE --
YET YOU KNOW THAT THE DEPARTMENT
HAS INDICATED WILLINGNESS TO
WORK WITH YOU AND SO YOU COULD
REQUEST THAT YOU GET SUBMITTED
AND HAVE A CHANCE TO REVIEW AND
THEN IF THERE ARE CONCERNS ABOUT
FOLLOW THROUGH.
AT GIVEN THAT THE LEGISLATURES
IN RECESS RIGHT NOW.
THANK YOU I APPRECIATE THAT
MADAM CHAIR THANK YOU AND I
THINK.
WE'LL BE HEARING FROM OTHER
STAKEHOLDERS SO I THINK THAT
DOES INFORM IN A BROADER IF
CONCERN OF MANY PEOPLE HERE
TODAY.
BUT I ALSO DO RECOGNIZE THAT THE
KIND OF PRO FORMA INFORMATIONAL
GATHERING HERE TODAY.
SERVES A PURPOSE.
PERHAPS MORE IMMEDIATELY FOR THE
BROADER STATE WIND.
WATER PROJECT --
IN PUBLIC WATER AGENCIES --
SO THANK YOU THANK YOU FOR A
FOLLOW UP VERY QUICKLY BEFORE WE
MOVE TO DOCTOR PAN --
AGAIN 640-9 WAS.
UNFORTUNATELY JUST ADMITTED
AUGUST TWENTY EIGHTH AND SO WE
DIDN'T GET TO REALLY SEE THE
LIGHT OF DAY BECAUSE IT WOULD.
ANSWER IT WOULD BE AN ANSWER FOR
US AS THE LEGISLATURE IN TERMS
OF DOCUMENTING THE MAKING INTO
LAW IF THE GOVERNOR SOFFIT TO
SIGN IT WHAT OUR OFFICIAL ROLE
IS BUT AGAIN WE WILL CONTINUE TO
HAVE THE CONVERSATION BECAUSE
I'M CLEAR.
THAT THE LEGISLATURE CAN --
EXERCISE ARE RIPE FOR OVERSIGHT
IS ABOUT --
YOU KNOW NEGOTIATIONS
CONVERSATIONS FOR ONE THING I
WANT TO FOLLOW UP WITH YOU --
WE'RE CLEAR THAT THE CURRENT
AMENDMENT BEFORE US TODAY WAS A
FIVE YEAR PROCESS.
AND YET I ATE SO I GUESS I'M
TRYING TO REALLY GET A SENSE OF
IF IF THIS IS WISHFUL THINKING
THAT YOU'RE HOPING THAT YOU'LL
BE DONE WITH.
THE WATER FIX AMENDMENT BY THE
END OF THIS YEAR BECAUSE IT WAS
ON A MUCH FASTER TRACK.
THEN CERTAINLY THE CURRENT
AMENDMENT AND SO.
HOW REALISTIC IS THE END OF THIS
CALENDAR YEAR IN TERMS OF
COMPLETING THAT PROCESS --
WELL YOU KNOW WE LIKE.
TO WE LIKE TO DO THINGS WITH ALL
DELIBERATE SPEED --
AND NEED A KEY MILESTONE IS GAY
IN PRINCIPLE --
AND WE SET OURSELVES A FAIRLY
RIGOROUS TIMELINE AND WE'VE
EFFECTIVELY MET THAT TIME LINE --
WE DO NEED TO DRAFT AND WE NEED
TO COMPLETE THE ENVIRONMENTAL
REVIEW PROCESS AND YOU KNOW
WE'LL KEEP MOVING WE THINK
THAT'S A REALISTIC SCHEDULE
WHETHER OR NOT WERE ABLE TO MEET
IT -- HIM.
CURRENTLY IN EVEN COLLEAGUES
EVEN THOUGH WE'RE IN THE INTERIM --
SHE'LL BE SEE.
POLICY COMMITTEES INDIVIDUALS
CAN CERTAINLY OUR LEADERSHIP CAN
CERTAINLY ENGAGED IN
CONVERSATION WITH THE DIRECTOR
TO REALLY TALK ABOUT.
YOU KNOW WHAT OVERSIGHT WILL
LOOK LIKE --
OVER THE COURSE OF THE NEXT FEW
MONTHS [inaudible]
DOCTOR PAYNE.
THANK YOU AND THAT ONE THANK --
DIRECTOR AND YOUR STAFF FOR
BEING HERE TODAY --
SO AT THE END I APPRECIATE THAT --
YOU KNOW WE ARE FACING A CRUNCH
IN TERMS OF TRYING TO DO LONG
TERM FINANCING FOR THE STATE
WATER PROJECT WHICH IS AGAIN AS
I SAID IN MY OPENING VERY
CRITICAL TO THE STATE.
SO I CAN CERTAINLY APPRECIATE
THAT.
I GUESS THE FIRST QUESTION I
JUST HAVE BECAUSE YOU TALKED A
LOT ABOUT THIRTY YEAR BONDS IT'S
A STANDARD THING --
SO WHAT THESE CONTRACTS DO IS
THEY GO OUT TO TWENTY EIGHTY
FIVE WHICH IS SIXTY SEVEN YEARS
AWAY FROM NOW.
SO THERE'S THE TIES SEES IT
FIFTY BUT ACTUALLY FIFTY YEARS
PLUS THE TIME WE HAD SEVENTEEN
YOURSELF I MEAN SIXTY SEVEN
YEARS IS.
WIDE SIXTY SEVEN YEARS AND SO
THAT'S TWICE AS LONG AS SIX
THAT'S TWICE AS LONG AS THE THE
MORE TWICE AS LONG ACTUALLY YOU
KNOW -- SO --
THAT WHY WHY SO QUITE SO FAR OUT.
YOU WANT TO RESPOND TO THE
RATIONALE FOR THE EXTENSION I
MEAN I GET I GET THE THE WAY IT
WORKS THE CRUNCH THAT SEVENTEEN
BUT AND YOU DON'T WANT TO JUST
EXACTLY THIRTY BECAUSE YOU HAVE
FEARS BUT WHY SO FAR OUT
[inaudible]
YES -- WE
HAVE FIFTY YEARS OF EXPERIENCE
RIGHT NOW OPERATING THE WATER
PLUS OF LESS THAN YOUR AT
EXTENSION ASKING. FOR FIFTY
EIGHT YEARS ASKING FOR SIXTY
SEVEN NOW BUT OUR ORIGINAL.
CONTRACT TERMS GO OUT.
HI SEVENTY FIVE YEARS AND SOME
OF THEM DON'T I EXPIRE UNTIL
TWENTY FORTY TWO DOES FOR THE
LAST CONTRACTORS TO SIGN UP.
WITH SIXTY YEARS OF EXPERIENCE
WE HAVE DETERMINED THAT GOING
OUT ANOTHER FIFTY YEARS.
MAKES SENSE IN AND GOING OUT
FIFTY YEARS FROM TWENTY THIRTY
FIVE AND WE'RE ALSO LOOKING AT
NOT GETTING INTO THIS
COMPRESSION PROBLEM.
WHICH IS.
HAS THE POTENTIAL TO CAUSE
SIGNIFICANT PROBLEMS IN RAISING
THE MONEY WE NEED --
TO REPAIR AND RECONSTRUCT INTO
OUR SEISMIC REPAIRS SO THE
THINKING WAS.
WE GO OUT FIFTY YEARS --
COMPRESSION THIS COMPRESSION
PROBLEM WE'RE FACING NOW WE'LL
HAVE SOME LEEWAY WILL HAVE --
BEFORE THIS STARTS OCCURRING
AGAIN.
AND IN IT AND IT'S REALLY
CONSISTENT WITH.
FIRST TERM WAS SEVENTY FIVE
YEARS SECOND TERM OF FIFTY YEARS
SEEMS TO MAKE SENSE FOR A
PROJECT OF THIS MAGNITUDE OF
THIS COST OF THE SIGNIFICANCE TO
THE STATE.
AT THAT I I GUESS I WOULD
RESPECTFULLY DISAGREE A LITTLE
BIT I MEAN I DON'T CONCEPTUALLY
HOW TO GET WHAT YOU'RE SAYING --
I WOULD ALSO MAKE NOTE THAT --
THAT'S A LOT OF TIME AYERS WELL
I DON'T KNOW HOW MANY PEOPLE WHO
ARE.
HERE ON THE TH WHAT WHAT WE'LL
BE DOING IN THIRTY YEARS AND OUR
SUCCESSORS AND SO FORTH AND SO I
MEAN I I I I GET THAT WHEN YOU
SAID. FIFTY YEARS ACTUALLY SAID
THIS IS SIXTY SEVEN YEARS SO I
MEAN IT'S ANOTHER SEVENTEEN
YEARS BEYOND THAT FROM TODAY.
RIGHT SO I I I I I GET THAT WE
STARTED AT SEVENTY FIVE YEARS --
BUT BUT I DO THINK THAT THERE
ARE YOU KNOW IN TERMS OF ON
GOING OVERSIGHT AND SO FORTH
THAT'S A REALLY LONG TIME AND
THAT.
MAYBE IT'S BETTER TO THAT AND
THEN WHAT HAPPENED IS OF COURSE
AS WE GET CLOSER YOU GET
COMPRESSION RATE BUT FRANKLY
WE'RE TALKING ABOUT THE FIRST
THIRTY YEARS IT'S DIFFICULT
THING WE'RE TALKING ABOUT THIRTY
SEVEN YEARS OF NINE COMPRESSION
SO -- DOES
IT HAVE TO BE THAT LONG I MEAN I
MEAN I'M NOT GOING TO BE HERE
BEYOND THE TERM LIMITS ASSUMING
THE VOTERS DON'T CHANGE A TERM
LIMITS I MEAN I'M NOT GOING TO
BE AROUND HERE.
IN THE LAST ELECTIONS ARE ABOUT
THE I MEAN CERTAINLY.
THAT JUST SEEMS TO BE A VERY
LONG TIME IF I COULD ADD AN
ADDITIONAL DATA POINTS. FOR
CONSIDERATION AND SO YOU KNOW
WHEN WE PLANNED --
WE HAVE AN ASSET MANAGEMENT PLAN
THAT --
THAT'S WHERE WE ASSESS --
THE NEEDS OF ALL THE STATE WATER
PROJECT ASSETS AND AND SET OUT --
RESPONSIBLE COURSE FOR THE
REPAIRS WE LOOK AT A FIFTY YEAR
TIME FRAME AND THAT ALSO
CORRESPONDS TO THE THE LIKELY.
LIFE CYCLE OF FACILITIES OF THIS
MAGNITUDE SO THAT IS.
ALSO VERY MUCH PART OF OUR
THINKING IS THE LIFE CYCLE OF
THE PROJECTS WE ANTICIPATE OF
THESE KIND OF REVENUE BONDS
WOULD FUND OKAY SO RIGHT AWAY
WHAT I KEEP HEARING IS IT HEARD
THIRTY YEARS FOR A LOT FOR
FINANCING.
RIGHT AND NOW I'M HEARING FIFTY
YEARS.
AND THEN WE HAVE SIXTY SEVEN
YEARS SO --
I GUESS AT THAT.
I I WOULD IN AND I THINK THAT
THERE IS A MEAN THIS IS NOT FOR
ME AND THAT WILL BE AN OFFICE
THEN BUT I I DO THINK IN TERMS
OF OVERSIGHT IT CETERA THAT.
MAYBE WE OUGHT TO HAVE A CYCLE
THAT MAKES YOU KNOW IT AND THEN
PUT THAT MEANS IS THAT IT'S NOT
THAT IT'S GOING TO BE.
THAT DOES MEAN THAT MAYBE EVERY
DECADE THE LEGISLATURE SHOULD BE
LOOKING AT THESE CONTRACTS
THINGS INSTEAD OF THIRTY EL
TWENTY THIRTY YEARS OUT EVERY
THIRTY YEARS I MEAN I JUST.
RIGHT EVERY TIME RIGHT SO
BECAUSE I MEAN THAT'S WHAT WERE
YOU ACTUALLY DOING IT YOU KNOW
AS WE GET CLOSER TO THE END WILL
PUSH IT OUT WILL PUSH IT OUT
BECAUSE EXACTLY WE WE DON'T WANT
WE WANT TO BE ABLE TO ALLOW YOU.
TO DO LONG TERM FINANCING WE
WANT YOU TO THINK YOU KNOW AND
LONG TERMS THAT YOU HAVE ASSETS
THAT ARE BUT ALSO I THINK IN
TERMS OF BEING SURE THAT'S THE
IT'S A PUBLIC I MEAN SO
IMPORTANT EVERYONE'S PUBLIC
PROCESS THAT WE HAVE PEOPLE
ENGAGE THAT.
PEOPLE ARE COMING BACK WE'RE
HAVING THESE TYPES OF YOUR IT
HAPPENED ONCE EVERY THIRTY YEARS
SO JUST JUST WHAT THROW THAT OUT
THERE.
LET ME VERY QUICKLY WITH TURBO
RETURN TO SENDER FULLER FOR A
FOLLOW UP AND THEN I'LL COME
BACK HERE TO MISTER FRAZIER AND
THEN SENATOR GAL JOHNNY.
SORRY YOU HAVE MORE THAN
ANYTHING ELSE IS OKAY HANG ON
LET ME DO A QUICK FOLLOW UP AND
I'LL CONNECT YOU.
TO GO BACK INTO MY CLEAR FULLER --
ON THIS POINT --
PERHAPS IT WOULD BE EASIER IF WE
ASK.
THE DIRECTOR TO PROVIDE US WITH.
SOME INFORMATION SUCH AS WHAT IS
THE BOND DEFAULT RATE IF THERE
IS.
ONE OF A WHAT IS THE AVERAGE
NUMBER OF YEARS --
BEFORE DID ON THE DEFAULT RATE.
AND THEN WE MAY BE TAKE THAT
INFORMATION IF THAT COULD BE
SENT TO THE CHAIR HAVE A SMALL
SUBCOMMITTEE THAT WE LOOK OVER.
AND THEN WE HAVE SOME BETTER
CONCLUSIONS.
ABOUT.
NEW BONDS AND NEW BOND OVERSIGHT
BASED ON SOME STATISTICS SINCE.
ADMITTEDLY THEY HAVE SIXTY EIGHT
YEARS OR SO.
EXPERIENCE IF WE FIND FOR
EXAMPLE THAT THERE IS RELATIVELY
FEW BOND DEFAULTS OR IF THERE IS
A A PERIOD IT'S WORSE SHORT OR
LONG.
THEN IT WE COULD MAYBE DRILL
DOWN JUST ON THOSE AREAS BECAUSE
YOU KNOW YOU'RE TALKING WITH
TWENTY NINE STAY WATER
CONTRACTORS YOU'RE TALKING ABOUT
[inaudible]
HUGE.
DATABASE AND SO THAT MIGHT THAT
MIGHT HELP GET TO THE PLACE YOU
WANNA START.
AND WHILE WE'RE DOING THAT JUST
BECAUSE I'M ALWAYS CURIOUS I
PARTICULARLY LIKE YOU TO ADD
SOME INFORMATION ABOUT WHETHER
THE COLD FIRED PLANTS IN NEVADA
THAT WAS.
ESTABLISHED IN GOVERNOR BROWN'S
FIRST.
OF ROUND HERE A DEFAULTED ON THE
BONDS ARE PAID OFF OF WHAT WE
DID ABOUT THAT BECAUSE THAT WILL
BE THE PROVIDE GREAT INSURANCE
FOR US IF IT WAS WELL DEALT WITH.
THAT EVEN DIFFICULT SITUATIONS
CAN BE ADDRESSED.
OR IT WILL GIVE YOU A A BETTER
IDEA OF WHAT YOU'RE.
TRYING TO OVERSIGHT AND PREVENT.
THANK YOU THANK YOU AND DOCTOR
BANDS.
THANK YOU ENTER SO THE NEXT I
GUESS THE OTHER COURT IS THE
NEXT QUESTION I HAVE IS ACTUALLY.
IS SO ONE OF THE AMENDMENTS --
BASICALLY ALLOW ISSUE BONDS IN
CHARGE CONTRACTORS REGARDLESS SO
RESISTANCE BEFORE NINETEEN
EIGHTY SEVEN AND ALSO TO FINANCE
OTHER CAPITAL PROJECTS THAT WERE
NOT ARRAY LIST IN THE CONTRACT.
IF THE DEPARTMENT 80% --
AFFECTED CONTRACTORS TO FIND
MUTUALLY AGREES WITH THIS SEEMS
TO BE PRETTY OPEN ENDED.
I MEAN CLEARLY THAT CONTRACTORS
NEWBIE ON BOARD BUT AT THE END
SO I I JUST DO HAVE TO ASK IS IS
THAT.
IS THIS ISN'T T WHO IS THE WELL
THE DEPARTMENT CLEARLY DECLARED
HERE IN PUBLIC AT THIS HEARING
THAT THAT PROVISION WILL NOT BE
USED TO FINANCE --
THE WATER FIX AND THAT WE WILL
NOT BE FLOATING BONDS TO FINANCE
TO FUND THE WATER FIX USING THIS
MECHANISM --
USING THIS STUFF AT THIS --
AMENDMENT PROPOSED AMENDMENT
CONTRACT AMENDMENT.
SO -- IF I
COULD JUST TAKE A STEP BACK --
SO.
WE DO HAVE A LIST OF FACILITIES
AND OVER THE COURSE OF THE LAST
DECADES IT BECAME CLEAR --
THAT IF WE WERE OVERLY
PRESCRIPTIVE ON THAT LIST IT
DISABLED THE DEPARTMENT'S
ABILITY --
TO TO CAPITALIZE IMPORTANT
PROJECTS SOME OF IT IS EMBRACING
NEW TECHNOLOGIES SO AND SKATE A
SYSTEMS CAME ONLINE ETCETERA --
THE DELTA FACILITIES THE LISTING
OF ADULT OF FACILITIES EIGHT
TOPICAL AREAS ALREADY USED TO
FUND IMPORTANT PROJECTS IN THE
DELTA SUCH AS A LEVY WORKING
THIS IS SOON MARSH.
A FEW SCREENS THAT WE'RE DOING
SOME WORK OUT IN THE A LITTLE BY
PASS ON THOSE ARE THE KINDS OF
PROJECTS THAT --
THAT THIS CONTRACT EXTENSION
WOULD ENABLE US TO CONTINUE TO
PROCEED WITH THE WATER FIX PIECE
IS THE PEACE WHERE AS A SEPARATE
AMENDMENT WHERE WE DIVIDE OUT
COST ALLOCATION IT'S IT'S VERY
CRITICAL BECAUSE AS YOU MAY BE
AWARE.
WE HAVE NORTH OF DELTA
CONTRACTORS WHO WOULD NOT
RECEIVE THE BENEFIT OF WATER FIX
AND THEREFORE DON'T WANT TO PAY
FOR IT.
AND WE HAVE OTHER PARTIES --
THAT WOULD LIKE TO TRANSFER
THEIR INCREMENTAL BENEFIT FROM
WATER FIX TO OTHER STATE WATER
CONTRACTORS.
AND THAT'S THE WAY IN WHICH WE
ARE INSURING --
IN THE CONTEXT OF A CONTRACT
AMENDMENT THAT THERE THAT WATER
FIX IS PAID FOR ONLY BY THOSE
PARTIES --
WHO SEE A BENEFIT AND ACTUALLY
WANT TO PAY FOR THAT KIND OF I I
DON'T HEAR AN ANSWER TO MY
QUESTION SO AGAIN I'LL ASK MY
QUESTION AGAIN SERVE WILL?
CAN YOU STATE HERE CLEARLY THAT
WE YOU WILL NOT BE USING THIS
AMENDMENT WHICH ALLOWS.
THE DEPARTMENT OF FINANCE OTHER
COUPLE PROJECTS THAT ARE NOT
READY LISTEN THE EXISTING
CONTRACTS.
DEAD DEAD BASICALLY WERE KNOCKED
ME USING BASICALLY WE'RE NOT
GOING TO BE FINANCING THE WATER --
SIX USING THIS WEEK I GET THE
IDEA THAT WE HAVE TO MAINTAIN WE
HAVE CAPITAL PROJECTS FOR THE
STATE WATER PROJECT BUT I WANT
TO BE VERY CLEAR THAT THIS.
PROVISION IS NOT GOING TO USE TO
BASICALLY FIVE EFFECTS AND
CONSTRUCTION OF THE TILES.
WILL.
HERE'S HERE'S THE ANSWER TO THAT
QUESTION SO WE SAY YES OR NO.
ABOUT OUR TEAM JUST SIMPLY
CANNOT DO THAT --
NO BECAUSE WE WILL USE PART OF
THIS CONTRACT AMENDMENT TO HELP
FINANCE WATER FIX AND HERE'S WHY.
BECAUSE WATER FIX INCLUDES WHAT
IT SAID.
IT AS ENABLES US --
TO ISSUE REVENUE BONDS INTO THE
FUTURE WE HAVE A CATEGORY THAT
EXISTS IN OUR CURRENT CONTRACTS
THAT AS PART OF THIS NEW
AMENDMENT MOVING FORWARD.
THAT --
DESCRIBES THE ABILITY OF THE
DEPARTMENT OF FUN PROJECTS IN
THE DELTA INCLUDING DELTA
FACILITIES AND THAT WOULD
INCLUDE WATER FIX SO YOU JUST
SAID YES YES WE'LL BE USING THIS
PROVISION OF THE WATER FIX AND
IN THE WATER AND THE DEPARTMENT
IS.
PURSUING A VALIDATION.
WORDS THAT WE HAVE THE AUTHORITY
TO DO SO SIR I I WANT TO MAKE
THAT POINT BECAUSE I AGREE WITH
YOU.
TRANSPARENCY IS ESSENTIAL AND SO
THE DEPARTMENT IS NOT --
ASSUMING IT HAS THE ALLOCATION
FOR A LOOK THOUGH IN OKAY SO SO
I WILL I JUST SO BASICALLY WHAT
YOU'RE TELLING ME RIGHT NOW
BECAUSE WHAT I WAS TOLD THE
HEARING WAS ABOUT WAS ABOUT.
THE REST OF THE STATE THE STATE
WATER PROJECT CAN BE SURE WE
KEEP THAT MAINTAIN BUT YOU HAVE
JUST SAID.
HERE THIS HEARING THAT YOU ALSO
WITH THE PURPOSE OF THIS WAS TO
TRY.
TO FLOAT BONDS TO FUND THE WHAT
IT DOES TUNNELS LET ME CLARIFY
WE CANNOT FIND ANYTHING RELATED
TO WATER FIX UNTIL THE WATER FIX
CONTRACT AMENDMENT OKAY SO LET
ME GO ASK ANOTHER QUESTION THAN
WHAT WAS SO YOU SAID YOU'RE
WORKING ON THE ACTIVE AND CAN I
JUST BRING.
THE QUESTION A LITTLE
DIFFERENTLY THAN YOU DID.
BECAUSE I I THINK WE'RE HAVING
THIS KIND OF CONVERSATIONS I
WANT TO TRY TO MAKE SURE THAT
YOUR QUESTION GETS ANSWERED AND
YOU ANSWER IT. TO THE BEST OF
YOUR ABILITY IN TERMS OF WHAT
YOUR TENNIS.
IS FUNDING FOR THE WATER FIX
PROJECT LINKED TO THE PROPOSED
AMENDMENTS BEFORE US TODAY.
NO THIS IS GOOD EXTENDS THE
CONTRACTS.
WELL THAT'S NOT WHAT YOU JUST
SAID.
SO CAN YOU SAY CLEARLY I'M GONNA
ASK YOU THEN THAT'S WHAT YOU SAY
THAT WE WILL NOT BE USING THE
CONTRACT AMENDMENTS THERE BEFORE
US TO FINANCE.
THE WATER FIX INCLUDING FLOATING
BONDS RIGHT SO.
THE THREE PART ANSWER AND YOU
FEEL FREE OF ME SO
THE CONTRACT NUMBER FOR YOU TO
KNOW.
THE CONTRACT AMENDMENT BEFORE
YOU TODAY.
EXTENDS THE CONTRACTS WHICH
ENABLES THE DEPARTMENT TO ISSUE
BONDS OVER THE LONG TERM.
WATER FIX IS A PROJECT IN WHICH
WE DON'T HAVE A CONTRACT
AMENDMENT IN PLACE YET.
THAT WOULD ENABLE US TO DO SO SO
WHEN THAT AMENDMENT IS COMPLETED.
THAT AMENDMENT WHICH STIPULATES
HOW WE WOULD CHARGE OUR
CUSTOMERS WOULD ESSENTIALLY TAKE
ADVANTAGE OF THIS EXTENSION.
OF THE WATER CONTRACTS AND THE
ABILITY TO ISSUE LONG TERM
REVENUE BONDS.
AS A MECHANISM TO FINANCE WATER
FIX SO THAT BECAUSE I THINK THE
CONCERN IS THAT WHEN YOU SAY
FINANCE OTHER CAPITAL PROJECTS
THREE NOT LISTED THAT THAT'S AN
OPEN ENDED THING TO DO WHATEVER
YOU WANT.
WE HAVE CAUGHT WE HAVE CAPITAL
PROJECT CATEGORIES AND WE ALSO
HAVE A FINANCE COMMITTEE THAT'S
PART OF THIS AMENDMENT THAT
ESTABLISHES A DIALOGUE WITH OUR
WATER CONTRACTORS. TO DESCRIBE
THE CAPITAL PROJECTS THAT WOULD
BE FUNDED --
OVER THE COURSE OF THE NEXT.
SEVERAL DECADES.
OKAY SO LET ME --
SO WHEN YOU MENTION THESE WATER
FIX AMENDMENTS AND EIGHT EIGHT
EIGHT THEN SO ARE YOU GOING TO
RETURN TO THE LEGISLATURE AND
AMP SO I'VE GOT IT WE DON'T HAVE
STATUTORY.
RIGHT BUT NOT EVERYTHING
REQUIRES A LOT.
WE CAN DO THINGS WITHOUT LOSS
THAT WE CAN DO THAT ON OUR OWN
SO ARE YOU GOING TO COME BACK.
TO YOU CAN MAKE A COMMITMENT
HERE YOU'VE GOT RETURNED WITH
THE WATER FIX AMENDMENTS. TO THE
APPROPRIATE AT THAT WELL I'VE
DEFERRED TO THE CHAIR BECAUSE
OBVIOUSLY WITH HER FOR JAIL BC
AND ALSO PERHAPS APPROPRIATE
POLICY COMMITTEE WHERE WE WILL
HAVE.
HEARINGS ABOUT --
PUBLIC HEARINGS ABOUT THE THE
WATER SIX AMENDMENTS FOR BEFORE
BEFORE THEY ARE ACTUALLY A
FINALIZED AND SIGNED.
I'D BE GLAD TO MEET WITH ANY
LEGISLATOR ON AND I'M SAYING
WELL YOU BRING THEM PUBLIC AT A
HEARING.
WELL THAT WOULD BE UP TO US TO
ACTUALLY CONVENIENCE I THINK.
THAT A PART OF THAT IS OUR
RESPONSIBILITY TO ACT PENCIL
WHAT I AM HEARING FROM DIRECTED
NAME IF IT'S A WILLINGNESS TO
RESPOND TO THE LEGISLATURE.
EITHER ON AN INDIVIDUAL BASIS
THE LEGISLATURE CHOOSE TO
CONVENE OURSELVES IN SOME
CAPACITY A POLICY COMMITTEE
WHATEVER THE CASE THE CASE IT IS
WHAT I'M HEARING FROM THE
DIRECTOR AS A WILLINGNESS TO
ENGAGE.
OKAY IS THAT WILLINGNESS TO
ENGAGE INCLUDES --
ASSUMING THAT THE APPROPRIATE
COMMITTEES ASIDE TO HOLD THE
HEARINGS --
TO APTITUDE TO TO STOCK TO HOLD
THOSE HEARINGS PRIOR TO THOSE --
CONTRACTS BEING FINALIZED AND
BIG AND SIGNED.
BY I BELIEVE THAT'S UP TO THE
PURVIEW OF THE LEGISLATURE TO
ESTABLISH THOSE OPPORTUNITIES I
AM WELL WITH THE RIGHT NOW
THERE'S NOTHING TO STOP YOU FROM
GOING FORWARD INTO SIGNING THEM
AND THEN TELLING US LATER SO
THAT'S WHY I'M TRYING TO GET.
THIS THAT'S WHY I'M ASKING YOU
IS THAT YOU GIVE US A PROPIONYL
IT IS SO WE CAN ACTUALLY IF WE
CHOOSE NOT TO HAVE A HEARING
THAT'S NOT YOUR FAULT THAT'S
OBVIOUSLY IT'S ON US.
BUT I JUST WANT TO SAY IS THAT.
RIGHT THE D. ARE YOU GOING TO
COOPERATE TO THE DEGREE OF
ACTUALLY AND FORMING THE
LEGISLATURE IN A TIMELY MATTER
TO ALLOW US TO HAVE THE HEARING.
CERTAINLY I WANT TO I WANT TO
POINT OUT THAT THE WATER FIX
CONTRACT AMENDMENT ITSELF IS
SUBJECT TO SEQUEL REVIEW.
ON THESE THIS INFORMATION IS ALL
PUBLICLY AVAILABLE AND I WOULD
BE GLAD TO MEET WITH.
ANY MEMBER OR SHOULD YOU
ESTABLISH A A POLICY COMMITTEE
OR GROUP THAT WANTS TO HEAR THAT
INFORMATION I AM.
I AM.
CERTAINLY COMMITTED TO TALKING
ABOUT IT PUBLICLY IN IT AND IT
IS PUBLICLY AVAILABLE NOW.
OKAY WELL I THINK THERE WILL
CERTAINLY ISN'T IT AS AN
INDIVIDUAL LEGISLATOR WHEN I
HEAR FROM YOU BUT ALSO WOULD
ALSO URGE THAT WE HAVE.
A PUBLIC HEARING ABOUT THAT --
AND AGAIN IN A TIMELY MY FINAL
QUESTION APPRECIATE CONSULTANTS
TO THE CHAIR I DID ASK THE
QUESTION L. A. L. BUT THE FOLLOW
UP -- IN
TERMS OF THESE CONTRACTS WHAT'S
THE LIABILITY TO THE STATE.
US OF A CONTRACTOR SEVERAL
CONTRACTORS --
HAVE FINANCIAL PROBLEMS ARE
UNABLE TO WHAT POINT DOES THE
STATE HAVE TO STEP IN AND
INTERVENE [inaudible]
RECEIVE.
STEVE GOING AGAIN.
WE CURRENTLY SELL REVENUE BONDS
IS SUPPOSED TO GENERAL
OBLIGATION BONDS REVENUE BONDS
ARE BACKED BY A SOURCE OF
REVENUE THAT WE DESIGNATE IN OUR
RESOLUTION IN THAT THE BOND
HOLDERS ARE AWARE OF BECAUSE OF
THE CONTRACT WITH THE BOND
HOLDERS IN EFFECT.
OUR ONLY SOURCE OF REVENUES THAT
WE PLEDGED TO PAY OUR REVENUE
BONDS ARE RECEIPTS WE RECEIVE
FROM OUR WATER CONTRACTORS.
AND AND SO THERE WOULD BE. ZERO
LIABILITY TO THE STATE OR THE
STATE GENERAL FUND IF THERE WERE
A DEFAULT.
IN ALONG THOSE LINES AND I THINK
SENATOR FULL OR GET TO IT IN
WITH THE THE REQUEST FOR
INFORMATION.
THE DEPARTMENT OF WATER
RESOURCES CURRENTLY RECEIVES
FROM THE STANDARD AND POOR'S A
TRIPLE A BOND RATING.
ON A REVENUE BONDS IT'S VERY
HIGH IT'S BACKED BY.
THE THE REALLY FINE FINANCIAL --
CONDITION OF OUR WATER
CONTRACTORS BECAUSE THEY'RE THE
ONES THAT.
PAY US THE BILLS THAT WE PAY OUR
BILLS THAT WE THEN IN TURN PAY
OUR DEBT SERVICE ON SO.
IT'S ADDITIONALLY THERE WAS A
BURNS PORTER ACT --
PASSED BY THE VOTERS IN --
IN NINETEEN SIXTY THE STAB WHICH
THE STATE WATER PROJECT.
THAT PROVIDED A ONE POINT SEVEN
FIVE BILLION DOLLAR.
BOND ISSUE GENERAL OBLIGATION
BOND ISSUE.
THAT'S VERY CLOSE TO BEING PAID
OFF I MEAN I THINK I THINK WE
HAVE.
A WE JUST DON'T HAVE WHAT WE
PAID MOST OF THAT'S WHERE THE
ONLY LIABILITY WOULD BE WE HAVE
NEVER HAD A DEFAULT OF OUR WATER
CONTRACTORS.
IN THE PAYMENT OF THEIR BILLS TO
US IN IN TURN WE'VE NEVER
DEFAULTED ON PAIN OUR BOND
HOLDERS THE DEBT SERVICE THAT.
THAT WE JUST TO CLARIFY DOES THE
ONE INITIAL MIND YOU SAID THAT --
WORK LIFE.
SO THE SECOND REVENUE BONDS
VERSUS ONE INITIAL BOND --
GENERAL OBLIGATION BOND YET THE
ONE THAT YOU MADE REFERENCE TO
RIGHT YEAH WE IN NIGHT THAT'S
SORTED JUMPSTARTED THE STATE
WATER PROJECT KNOW HOW MUCH HOW
MUCH.
IT WE WERE YOU WE REPAY REPEATED
INTO.
HAS RECEIVED PAYMENTS FROM THE
DEPARTMENT TO PAY THE DEBT
SERVICE AND THEN HOW MUCH LONGER
DO WE HAVE ON THAT --
I THINK IT GOES INTO THE MIDDLE
TWENTY TWENTIES BUT WE MAY BE.
WE MAY --
LESS THAN A HUNDRED THOUSAND
DOLLARS ON ALL RIGHT.
WELL YOU MENTION FIFTY EIGHT
YEARS I SOUL YEAH YOU'RE PAID
THAT OFF BY NOW AND I MIGHT
MENTION JUST. TO SHOW YOU TIME
LENGTH THOSE ORIGINAL GENERAL
OBLIGATION BONDS THAT WERE
ISSUED IN THE SIXTIES AND EARLY
SEVENTIES THEY WENT OUT FIFTY
YEARS.
THERE IS A REALLY LONG TERM
HORIZON FOR A PROJECT.
NOT LIKE IT OF THE SITES.
ARE.
THANK YOU OF JUST BEFORE I MOVE
ON TO A THREE MEMBER FRASIER.
I WANTED TO JUST DIRECTOR NAMED
ASK YOU TO ONE MORE TIME.
PROVIDE THE CLARIFICATION AND
I'M GONNA SAY IT IN MY LANGUAGE
AND I WANT YOU TO SAY THUMBS UP
THUMBS DOWN OR RESTATED BECAUSE
I THINK IT'S VERY IMPORTANT.
THAT -- THE
RECORD ACCURATELY PHRACK
REFLECTS THE ANSWER TO THIS
QUESTION.
YOU KNOW THE AMENDMENT TODAY
CREATES AN OPPORTUNITY TO EXTEND
THESE BONDS HERE.
THE WATER FIX AMENDMENT --
IT'S NOT ON THIS CONTINUUM.
MINUTE AS A SECOND SEPARATE TO
PROCESS.
THAT IF THE ENGAGED.
WOULD DIDN'T PERHAPS BENEFIT
FROM.
THE ACTIONS TAKEN HERE BUT IT IS
NOT -- A
FOREGONE CONCLUSION CORRECT SOLD.
ME RESETTING YOUR LANGUAGE.
SO ON MY EVERYBODY'S CLEAR THE
AMENDMENT BEFORE YOU TODAY.
EXTENDS THE CONTRACTS WHICH
ENABLES THE DEPARTMENT --
TO ISSUE LONG TERM REVENUE BONDS --
FOR CAPITAL PROJECTS FOR THE
STATE WATER PER.
THAT IN AND OF ITSELF --
DOES NOT AUTHORIZE WATER FIX.
AND DOES NOT AUTHORIZE THE STATE
OF CALIFORNIA TO BUILD TO BUILD
WATER FIX OR CHARGES WATER
CONTRACTORS FOR WATER AFFECTS
THE AUTHORIZATION FOR WATER FIX
IS A SECOND SEPARATE.
CONTRACT AMENDMENT PROCESS YES
OKAY.
WITH --
THANK YOU GOING BACK TO PAN I'M
TRYING TO MANAGE THIS WHOLE
PROCESS HERE ASSEMBLY MEMBER
FRASIER MANAGER YOU DOING WELL.
THE DIRECTOR YOU KNOW YOU WE
LOOK AT THE EXHILARATION OF OF
WHAT WE'RE DOING HERE.
YOU KNOW AT A PROJECT WHEN YOU
ARRIVE TALKED ABOUT IN IN MY
DISTRICT WAS CALLED TOUCH THE
TITLE.
HER PROJECT ROOMS IN TITLE IN.
TWO THOUSAND TWO AND HERO.
ALL THE ENVIRONMENTAL AND ALL
THE PROCESSES WE JUST PROGRAM
THIS YEAR [inaudible] SIXTEEN
YEARS.
BUT THIS PROCESS YOU XCELERATED.
SO MY DISTRICT IN MATTER THAT
PROJECT IN MATTER BUT WAS A
RESTORATION OF TIED AND WATER
LINES IN THE DELTA WOULD HELP
THE HEALTH OF THE DELTA.
BUT WE'VE XCELERATED THIS
PROJECT TO NO END TO MAKE SURE
[inaudible]
THAT.
SPECIAL INTERESTS ARE CATERED.
TO BUT THE PEOPLE THE DELTA WERE
LEFT ON THE BACK CAN'T.
AND O WE LOOK AT THESE THESE --
EXHILARATION SO YOU CAN GET
BONDING AND ONE NOT.
I DON'T KNOW WHAT FACTORS HAVE
BEEN TAKEN FROM YOUR YOUR
EXPENDITURE COMMITTEE OR
WHATEVER AND AND WHO SITS ON
THAT IS IT AGENCY PEOPLE OR IS
IT PEOPLE THAT ACTUALLY HAVE
VALUE.
STAKEHOLDERS THAT ACTUALLY CAN
WEIGH IN.
OR IS IT JUST A RUBBER STAMP
LIKE.
MOST AGENCIES DO HAVE.
AN INTERNAL --
BUT YOU KNOW JUST GENTLY BECAUSE
THEY SAY THEY'RE GOING THROUGH
THE PACES --
MY CONCERN IS IS THAT YOU HAVE
THE STATE WATER CONTROL BOARD.
THAT CAN ACTUALLY STOP ANY FLOAT
ANY PROJECT.
AND ACCELERATE THROUGH PUT
THROUGH THE DELTA [inaudible]
ONE DETERMINATION --
WHICH WOULD COMPLETELY.
BLOW [inaudible]
YOUR ABILITY --
TO PAY FOR A DEBT SERVICE.
ON THE OTHER PROCESS IS.
YOU KNOW THERE'S A PROJECTION OF
A POSSIBLY OF AN EXTENDED
DROUGHT.
UP TO TEN YEARS.
SO YOU'RE CIRCUMVENTING THE
LOWER DELTA BY DOING IT OF A
WATER FIX.
I'M WORRIED ABOUT THE IMPACT ON
THE RATE PAYERS AND THEN
ULTIMATELY THE TAXPAYERS.
AND AGAIN WHEN YOU LOOK AT
ORVILLE.
I THINK THE DEPARTMENT WAS
RESPONSIBLE. FOR THE
CONSTRUCTION OF THE SPILL WAY.
YET POOR.
CONSTRUCTION PRACTICES.
WHERE WHAT'S THE COST WHERE WE
ARE NOW ON THAT PROJECT?
IS IT OVER BILLION.
YES ONE POINT ONE BILLION.
OKAY.
SO [inaudible]
SEEING THAT.
THAT ONE POINT ONE BILLION
DOLLARS COULD HAVE BEEN UTILIZED
FOR SO MANY OTHER PROJECTS HAVE
THE PROJECT AND DONE WELL --
I'M REALLY CONCERNED ABOUT.
ABOUT BEING ABLE TO TRUST.
BEING ABLE TO TRUST IS TO ME --
I DON'T BELIEVE YOU IN A LOT OF
OF THESE THINGS BECAUSE WE'VE
BEEN THIS PROJECT HAS BEEN
JAMMED THIS SEEMS THIS WHOLE
PROCESS FOR CONTRACT EXTENSIONS.
ABSOLUTELY IS BEING JAM.
AND WHEN YOU HAVE SEVENTEEN
YEARS TO TO INCLUDE THE
LEGISLATURE INCLUDE THE PUBLIC.
I THINK THAT SERIOUSLY WE NEED
TO GO TO A PROCESS WHERE.
THERE HAS TO BE AN EXPENDITURE
PLAN TO THE THE LEGISLATURE
NEEDS TO APPROVE --
WE'VE SEEN IT ON OTHER PROJECTS
YOU KNOW A MANAGER --
THAT.
WE'RE TAKING A GOOD FAITH THAT
THE YOU'RE JUST GONNA DO RIGHT
WELL WE HAVE A ONE POINT ONE
BILLION DOLLAR EXPENSE.
NOW.
THAT.
WE HAD TRUST IN AN AGENCY AND
WASN'T DONE RIGHT.
SO I JUST.
I'M HOPING.
THAT YOU CAN SLOW YOUR ROLL.
AND UNDERSTAND THAT WE ALL HAVE
CONCERNS AND THE PROBLEM IS IS
WE JUST WENT INTO RECESS AND NOT
A LOT OF THE LEGISLATURE CAN
WEIGH IN --
TO THIS COMPONENT BUT ANYTIME
THAT WE DO LEGISLATION. TO TWO
PART OF THIS PROCESS.
IT SEEMS TO NOT MAKE IT TO THE
GOVERNOR'S DESK.
SO I'M HOPING THAT YOU HAVE AN
OPPORTUNITY. TO BUILD THIS
RELATIONSHIP --
SOCIALLY TRIP BECAUSE THERE'S
THERE'S THERE'S A PART OF THE
PUBLIC IN NORTHERN CALIFORNIA.
BET AGAIN D. W. OR I THINK THE
EXAMPLE IS TOUCH SLOUGH VERSES
FOR FIX.
YOU KNOW --
IT'S REALLY IT'S REALLY
DISHEARTENING THAT I SEE --
THAT WERE HERE AND I HAVE TO BE
HERE IN --
REPRESENT MY MY CONSTITUENTS BUT
I APPRECIATE THE CHEERS --
ABSOLUTELY BEING [inaudible]
TRANSPARENT AND UNBIASED THIS IS
AN ABSOLUTE OPPORTUNITY I AND I
CAN'T THANK YOU ENOUGH THANK YOU
VERY MUCH MISTER FRASER
APPRECIATE YOU WE'RE GOING TO
HEAR FROM SENATOR GAL JOHNNY.
FOLLOWED BY CITY TO NIELSEN AND
THEN WE'LL LOOP TO DOCTOR
PANTHER TO GUARANTEE ON I WANT
TO THANK SENATOR PAN AND SENATOR
MITCHELL FOR ASKING THE QUESTION
THAT I WANTED TO PUSH ON AND
THAT IS WITH REGARD TO WHETHER
THE AMENDMENT BEFORE US.
WOULD ALLOW FOR ANY FIND DOLLARS
TO GO TOWARD THE WATER FX
ITSELF -- I
I THINK RATHER THAN ASK IF YOU
WOULD BE WILLING I'D LIKE TO SEE
THE COMMITTEE REQUIRE THAT YOU
COME BACK TO THIS COMMITTEE.
WITH THE F. ANY WATER FIX
AMENDMENT.
PRIOR TO THAT YOU ACTUALLY ARE
WITH THAT WE'RE REQUIRING YOU TO
DO SO -- I
WISH THAT I WOULD HAVE
INTRODUCED LEGISLATION THIS LAST
YEAR TO REQUIRE THAT AND I WILL
DO SO NEXT YEAR.
I THINK THAT THAT'S IMPERATIVE
WE HAVE DONE THAT WITH OTHER --
MAKE A WATER PROJECTS PROJECTS
IN GENERAL HIGH SPEED RAIL IF
YOU WERE THE HIGH SPEED RAIL
AUTHORITY YOU WOULD BE COMING
BEFORE THE LEGISLATURE WITH THE
BUSINESS PLAN YOU WOULD BE
COMING AND MAKING A REQUEST FOR
DOLLARS TO BE USED.
EVEN KNOW YOUR CONTRACTS ARE
WITH -- WITH
WATER DISTRICTS ANOTHER
PROVIDERS AND THE CONTRACTORS
WEEDS ARE STILL USING STATE
DOLLARS FOR THE DEPARTMENT AS A
WHOLE AND WE'RE STILL
RESPONSIBLE FOR THE PROJECT AS A
WHOLE.
AND THE SECOND THING THAT I'D
LIKE TO ASK YOU ABOUT YOU
MENTIONED THE ASSET MANAGEMENT
PLAN CAN YOU TALK TO US MORE
ABOUT THAT AND WHAT THAT IS
EXACTLY IS AND AND HOW YOU
INSURE WHAT THE DELIVERABLES ARE
IN THAT AND WHAT.
WHAT THE COSTS ARE ASSOCIATED
WITH THOSE ACTUAL PROJECTS AND
WHAT'S THAT LOOK LIKE BECAUSE
THAT'S SOMETHING THAT I THINK AS
MEMBERS WE SHOULD ALL SEE WE
SHOULD BE REVEALING THAT?
SO -- THE
I'M I'M GONNA TURN IT OVER TO TO
JOEL LEDESMA WHOSE --
MORE FAMILIAR WITH THE DETAILS
ON THE ASSET MANAGEMENT PLAN BUT
YOU KNOW THE OVERARCHING MESSAGE
FOR THE STATE WATER PROJECT
WHICH IS TRUE OF A LOT OF OUR
INFRASTRUCTURE IN CALIFORNIA.
ITS ITS AGING INFRASTRUCTURE AND
WATER IN PARTICULAR ALSO SUBJECT --
TO THE CHALLENGES OF A CHANGING
CLIMATE ON TOP OF THAT.
AGING INFRASTRUCTURE SO --
THE ASSET MANAGEMENT PLAN IS A
DOCUMENT THAT'S BEEN UNDER
DEVELOPMENT FOR THE LAST COUPLE
OF YEARS --
AND IT WHAT IT IS CENTRALLY DOES
IS THAT THERE ARE PARTS OF THE
STATE WATER PROJECT THAT ARE.
COMING TO THE CLOSE OF THEIR
USEFUL LIFE OR ARE IN NEED OF
REPAIR AND AND REHABILITATION.
AND WE ARE VERY MUCH ENTERING
INTO AN ERA OF OF REINVESTMENT
AND SOME OF OUR INFRASTRUCTURE.
AND WE'RE GOING TO NEED TO DO
THAT -- IN A
TRANSPARENT WAY AND WE HAVE A
LOT OF ABILITIES --
THAT WE DIDN'T HAVE WHEN THE
STATE WATER PROJECT WAS WAS
ORIGINALLY ORIGINALLY BUILT.
AND SO THE DEPARTMENT --
UNDER MY LEADERSHIP I THINK IS
GOING TO BECOME A LOT MORE
TRANSPARENT AS AN ORGANIZATION
NOT ONLY WITH THE PUBLIC WATER
AGENCIES WHO YOU KNOW.
WE
HAVE A LONG HISTORY WITH OUR
PUBLIC WATER AGENCIES AND THEY
HAVE A LOT OF IDEAS ABOUT WHAT
THE THINGS D. W. R. HAS DONE
WELL IN THE ONES WE HAVE NOT
DONE WELL --
AND THOSE FOLKS ARE ALSO VERY
MUCH ACCOUNTABLE IN AN ELECTED
WAY TO THEIR RATE PAYERS.
AND SO.
IT'S MY VIEW THAT THE MAGNITUDE
OF THE REINVESTMENT THAT IS
GOING TO BE REQUIRED --
TO MAKE SURE THAT OUR WATER
SYSTEM IN CALIFORNIA IS
FUNCTIONING AND SUPPORTS NOT
ONLY THE ECONOMY BUT ALSO
SUPPORTS THE ECOSYSTEMS IN
CALIFORNIA ANNUAL BASIS AND
OPERATE RAJA ACT OUR WAYS IN
WHICH THE LEGISLATURE HAS --
HAS ALREADY WEIGHED IN --
AND AND NECESSARILY
INAPPROPRIATELY --
TO MAKE THE STATE WATER PROJECT
A LITTLE BIT MORE TRANSPARENT TO
THE GENERAL PUBLIC AND I THINK
THAT'S SOMETHING --
I'D BE GLAD TO PURSUE AND I
THINK OUR STATE WATER
CONTRACTORS --
WOULD ALSO SUPPORT THAT KIND OF
THAT KIND OF TRANSPARENCY IN IN
AND PARTLY BECAUSE AGAIN THEY'RE
ALL ACCOUNTABLE TO CALIFORNIANS
IN THE TWENTY SEVEN MILLION RATE
PAYERS THAT --
WE'RE GONNA NEED TO HAVE
REINVEST IN OUR SYSTEM --
ON TO TURN IT OVER TO TO JEWEL
MORE SPECIFICALLY TO ANSWER YOUR
QUESTIONS ABOUT THE ASSET
MANAGEMENT PLAN.
GOOD MORNING --
MADAM CHAIR AND MEMBERS AND
THANK YOU FOR THE OPPORTUNITY
THE DEPARTMENT IS YOU KNOW IN MY
VIEW IS BEEN A VERY SUCCESSFUL.
OPERATION OF THE STATE WATER
PROJECT FOR THE LAST FIFTY YEARS
AND IT'S CREATED YOU KNOW IT'S
CREATED A LOT OF BENEFIT TO THE
STATE OF CALIFORNIA.
BUT YOU KNOW I'VE BEEN AN
ENGINEER THERE KIND OF SEEING
THE FACILITIES WHEN SOME OF WHOM
WERE VERY NEW AND KIND OF SEEN
THE AGING OF THE INFRASTRUCTURE
AS YOU WOULD SAY.
AND MY PREDECESSOR ABOUT THREE
YEARS AGO YOU KNOW MADE THE
COMMITMENT THAT WE NEEDED TO
HAVE A STRONGER ASSET MANAGEMENT
PROGRAM SO WE ALREADY HAD ONE
IT'S A COMMON UTILITY PRACTICE
TO HAVE AN ASSET MANAGEMENT
PROGRAM. TO MANAGE THE LIFE AND
TO GET THE MOST --
EFFICIENT LIFE OUT OF EVERY
ASSET WE OWN.
SO HE STARTED A NEW A NEW
PROGRAM THAT WAS GOING TO HOLD
US TO A HIGHER STANDARD OF ASSET
MANAGEMENT SO WE'VE ADOPTED
WHAT'S CALLED ISEL FIFTY FIVE
THOUSAND ONE WHICH IS AN
INTERNATIONAL STANDARD FOR ASSET
MANAGEMENT AROUND THE WORLD.
SO OUR GOAL FOR THE LAST FIVE
YEARS IN WEARING YEAR THREE HAS
BEEN LET'S UPDATE OUR PROGRAM SO
THAT INCORPORATES ALL ASSETS
WHETHER THE ROTATING EQUIPMENT
LIKE OUR PUMPS OR GENERATORS.
OR CIVIL INFRASTRUCTURES LIKE
OUR DAMS IN ACADEMICS AND
PIPELINES IN BRING THEM ALL IN
INTO ONE COMPREHENSIVE PROGRAM.
THAT CAN REALLY EVALUATE THE
CONDITION.
AND THE EXPECTANCY AND THE RISK
OF EVERY PIECE OF EQUIPMENT SO
THAT WE'RE NOT ONLY MAKE
CREATING A FINANCIAL PLAN TO PUT
OUR CAPITAL DOLLARS.
WHERE RELIABILITY IS MAINTAINED
OR ENHANCE BUT ALSO TAKING INTO
ACCOUNT RISK INFORMED DECISION
MAKING SO WE'RE NOT PUTTING THE
PUBLIC?
OR THE INFRASTRUCTURE AT RISK SO
WITH THIS NEW PROGRAM THAT'S
GOING TO EXTEND FIFTY YEARS OUT.
WILL BE ABLE TO SEE THE
CONDITION OF EVERY ASSET WE HAVE.
APPLY RISK TO IT WHETHER IT'S
PUBLICRISK RELIABILITY RISK
ENVIRONMENTAL RISK COMPLIANCE
RISK.
AND PUT OUR DOLLARS WHERE WE ARE
THEIR BEST APPROPRIATE TO NOT
PUT ANY RISK ON THE PROJECT BUT
YET.
ALLOW THE AFFORDABILITY LIKE
WATER AGENCIES IN THE DEPARTMENT
TO BE ABLE TO PUT THE MONEY
WHERE IT'S BEST FIT AND BE ABLE
TO CONTINUE TO OPERATE THE STATE
WATER PROJECT AND UPDATED AS AS
APPROPRIATE.
SO IN THIS ASSET MANAGEMENT PLAN
IT EIGHT CONTAINS THEM ASSETS
THAT WE CURRENTLY HAVE DOES IT
HAVE THE ASSETS THAT ARE
PROPOSED [inaudible]
NO.
IS THERE A PLAN TO HAVE THE
ASSETS AS OPPOSED.
SORRY AND YES AS ASSETS ARE
BROUGHT ON LINE OR BUILT OR
CONSTRUCTED.
THEN THEY'RE PULLED INTO THE
ASSET MANAGEMENT IT'S MORE OF A
MAINTENANCE PROGRAM TO MAKE SURE
THAT WE'RE PROVIDING WERE DOING
THE RIGHT MAINTENANCE ON THE
PIECE OF EQUIPMENT TO GET THE
LIFE THAT WE EXPECT AUTUMN S
THAT PROGRAM WOULD NOT HAVE
[inaudible]
FUTURE PROJECTS UNTIL THEY'RE
CONSTRUCTED IN THEIR ACTUAL
ASSETS ON THE BOOKS.
SO THERE IS NO MECHANISM. TO
BRING TO THE IN THAT THERE IS NO
VEHICLE TO BRING TO THE
LEGISLATURE PER SE.
THAT HAS --
AN OVERALL SUMMARY AND PLAN FOR
A NEW ASSETS SUCH AS THE WATER
FIX THAT IS PROPOSED.
BUT RATHER IT'S IN YOUR INNER
WORKINGS AND THERE'S NOT A
FORMALIZED PLAN THAT WE HAVE ANY
ABILITY TO REVIEW.
OR COMMENT ON WELL THE
CALIFORNIA WATER PLAN AS THE
WATER PLAN THAT WE UPDATE EVERY
FOUR YEARS AND WERE DUE TO
RELEASE.
A NEW VERSION OF IT AND TWENTY
EIGHTEEN THAT YOU KNOW.
TAKES AN INVENTORY OF ALL THE
HYDROLOGIC REGIONS IN CALIFORNIA --
WATER AVAILABILITY FROM ALL
DIFFERENT KINDS OF SOURCES
BECAUSE YOU KNOW DUE TO BE OURS
IS.
IN A BIGGER THAN PROJECT AND
THAT'S THE PLACE WHERE WE
INTEGRATE --
POTENTIAL NEW PROJECTS --
THAT COULD COME ONLINE --
INCLUDING UNDERGROUND STORAGE
ABOVE GROUND STORAGE NEW
CONVEYANCE --
OTHER KINDS OF LOCALIZED
PROJECTS IT --
DESALINATION.
RECYCLED WATER THAT'S THE PLACE
WHERE THE DEPARTMENT OF WATER
RESOURCES DOES A MUCH BROADER
CALIFORNIA WATER PLAN THAT HAS
THE POTENTIAL --
THAT OFFERS YOU KNOW POTENTIAL
PATHS FOR FOR WATER SECURITY IN
CALIFORNIA.
OKAY THANK YOU.
THANK YOU AND WELCOME SIR TO
NIELSEN.
THANK YOU MADAM CHAIR MY
APOLOGIES FOR THE DELAY I'VE
BEEN A NINE ONE ONE EIGHT
MINUTES THIS MORNING.
DEALING WITH ACTUALLY VICTIMS OF
THAT TRAGEDY.
I APPRECIATE THE OPPORTUNITY TO
COMMENT HERE.
I MUST SAY THAT IT IS OF SOME
CONCERN TO ME THAT.
THIS IS OCCURRING AFTER THE
LEGISLATURE HAS ADJOURNED --
BUT AT LEAST WE'RE GETTING I
HAVE AN AN OPPORTUNITY.
HERE TO COMMENT.
I WOULD LIKE TO COMPLIMENT THE
DIRECTOR'S.
BUT WE'VE HAD MANY MEETINGS OVER
THE MONTHS SINCE HER APPOINTMENT.
AND IT APPEARS TO ME SHE'S VERY
SINCERE ABOUT REACHING OUT.
AND INJURING MORE ACCOUNTABILITY
AND TRANSPARENCY WITHIN THE
DEPARTMENT.
YOU HEARD ME MANY TIMES IN THIS
VERY ROOM SAY THAT THERE IS NO
TRUST IN THAT DEPARTMENT.
ZERO AND IN THE AREA THAT I
REPRESENT IT'S DOUBLE.
ZERO BECAUSE OF OUR BILL
[inaudible]
BUT IT LOOKS LIKE SO FOR THE
DEPARTMENT MAKING A GOOD FAITH
FAITH EFFORT TO TO WORK WITH US
AND YOU DID WORK GO WITH
ASSEMBLYMAN GALLAGHER AND I ON
SOME DAMN INSPECTION LEGISLATION
LAST YEAR.
AND ON THE GOVERNOR'S DESK RIGHT
NOW IS ANOTHER MAJOR TO ALLOW
COMMUNITY INPUT.
A NOT DIRECTLY IN VOTING AND
DOESN'T HAVE POWERS BUT IT DOES
HAVE THE ABILITY TO MEET AND BE
INFORMED.
AND TO INFORM THE DEPARTMENT SO
THAT'S MOVING IN THE RIGHT
DIRECTION.
I WOULD ITERATE FROM MY OWN
PERSPECTIVE THAT INDEED THERE IS
A LOT OF CONCERN ABOUT WATER FIX.
AND WHERE IT'S GOING TO GO.
AND WHAT ITS FUTURE IN FACT WILL
BE.
pWHAT IS ABSOLUTELY CLEAR THOUGH?
THERE MUST BE.
VERY STRICT LEGISLATIVE
OVERSIGHT OF EVERYTHING THAT IS
DONE.
THE OVERRUNS ON OR REAL RIGHT
NOW FRANKLY ARE OF GREAT CONCERN
TO ME.
NOW I KNOW WHAT THE DEPARTMENT
IS SAID ABOUT.
THOSE OVER RUNS AND WHY.
BUT THE DEGREE TO WHICH THOSE
[inaudible]
JUSTIFICATIONS.
OUR PRESENT DAY ARE THE PRODUCT
OF FIFTY YEARS OF NEGLECT.
AND THE GREATEST NEGLECT WAS THE
LACK OF BORING OR UNDERGROUND.
EXPLORATION AS TO WHAT WAS GOING
ON UNDERNEATH THE SPELL WORKS
[inaudible] FOR DECADES.
N. INATTENTION TO FIXING.
THOSE PROBLEMS BEFORE THEY
EXPLODED INTO THIS NEAR DISASTER
THAT WE JUST EXPERIENCED.
THAT THEN EMPHASIZES THE POINT
THAT ON I SAY ALL INFRASTRUCTURE
IN CALIFORNIA NEEDS MUCH MORE
SCRUTINY.
AND MANAGEMENT BY THE
LEGISLATURE [inaudible]
SUCH PROJECTS.
UNDER THE AUTHORITY THE
DEPARTMENT OF WATER RESOURCES
MOST ASSUREDLY DO.
AND WHAT WE'RE LOOKING AT HERE
NOT ONLY IS THE FIXING IF YOU
WILL.
OF THE DAM [inaudible]
ORVILLE DAMN.
BUT REPAIR MAINTENANCE OF THE
DELIVERY SYSTEM.
THAT INCLUDES THE LEVEES IN THE
BY PASSES THAT CONVEY.
AND IN FACT THE DELTA ITSELF.
WHICH BY THE WAY THEY THROUGH
DELTA FACILITY IS A POSSIBILITY.
THAT WOULD NOT REQUIRE.
BY THE RED TUNNEL.
OR CAN NOW.
I WOULD HOPE THAT WOULD KEEP
THAT IN MIND.
AS WE LOOK AHEAD.
THE NOW TO BE A LITTLE BIT MORE.
SPECIFIC.
IS THIS HEARING NOW BEING
CONSTITUTED AS A FINAL --
LEGAL.
REQUIREMENT FOR THE DEPARTMENT
TO PROCEED.
WITH WATER FIX I THINK I HEARD
THAT SAID BUT I CAME IN LATE.
I WANT TO BE VERY SURE ABOUT
THAT IF IF I CAN REPLY PLEASE
MISTER CHAIR BECAUSE I OPENED
WITH MAKING THE CLARIFICATION SO
LET ME JUST STATE FOR THE RECORD
THAT.
WATER CODE SECTION ONE FOUR
POINT SEVEN REQUIRES THE
DEPARTMENT OF WATER RESOURCES TO
PRESENT IN THE RENEWALS AND
EXTENSIONS OF A LONG TERM WATER
SUPPLY CONTRACTS. TO AN
INFORMATIONAL HEARING OF THE
JOINT LEGISLATIVE BUDGET
COMMITTEE.
AND SO WHILE WE'VE TALKED.
MANY PEOPLE THAT QUESTIONS ABOUT
WATER FIX OWN RESPONSIBILITY
HERE TODAY.
IT'S TWO HERE AND ASK QUESTIONS
OF THE PROPOSED.
CURRENT CONTRACT AMENDMENTS
UNDERSTAND OKAY.
WELL THAT DOES IT COMPORT WITH
MY UNDERSTANDING.
AND THEN A MY THEN OFFERING AS
WE PROCEED.
IS THAT THE LEGISLATURE HAVE A
VERY SIGNIFICANT OVERSIGHT ROLE
THE SENATE IN ITS COMMITTEES THE
BUDGET COMMITTEE AND THOUGH THE
CASE SHOULD BE THE RESOURCES
COMMITTEE AFFECTING THIS AREA.
HAVE BEEN VERY ACTIVE IN
OVERSIGHT HEARINGS.
AND IT WOULD BE MY INTENT. TO
SEE THAT.
IF ANYTHING STEP UP.
AS WE PROCEED SO WE DON'T GET
DRIFTING OFF.
ON THE SIDE TRACK HERE OR GET
DIFFERENT AGENDAS.
THERE'S ALSO CONCERN BECAUSE IT
WAS MENTIONED THE WATER
COMMISSION AND THE WATER BOARD.
CERN'S ABOUT THOSE PARTICULAR
ENTITIES THEMSELVES GOING QUOTE
THEIR OWN WAY.
AND I'VE HAD MANY CONCERNS AND
OBJECTIONS AND VERBAL
OBSERVATIONS ABOUT THAT
PARTICULAR --
PHENOMENA IN GOVERNMENT --
WITH THAT KIND OF A SOLILOQUY --
DIRECTED THEM WITH.
WHAT WOULD YOU BE ABLE TO SAY TO
ME TO GIVE ME COMFORT?
THAT THIS IS NOT GOING TO BE A
COMPLETE HUGE OVER RUN.
THE CONTROLS ARE GOING TO BE IN
PLACE.
THE THINGS THAT ARE PROPOSED --
THE HIGHEST DEGREE OF EFFICACY
AND ACCOUNTABILITY.
THANK YOU SENATOR --
ID EXPECT THAT YOUR YOUR
QUESTION IS RELATED TO WATER FIX --
RELATED TO ACCOUNTABILITY COST
SO -- WELL
THE FIXING OF WAR BILL TO THAT'S
FAR FROM DONE AND THE
CONVEYANCES.
TO SO -- SO
WELL MAYBE I'LL START WITH OR
THEY'LL --
YOU KNOW AS YOU KNOW AND I I
KNOW THE DEPARTMENT HAS BEEN IN
SOME DIALOGUE WITH YOU AN
ASSEMBLY MEMBER GALLAGHER ON THE
THE ADDITIONAL COSTS THAT WE
MOST RECENTLY REPORTED --
IN A LARGELY DUE TO A
CONSTRUCTION PROJECT THAT.
WE ARE SIMULTANEOUSLY DESIGNING
AND CONSTRUCTING --
BECAUSE THAT'S WHAT PUBLIC
SAFETY DEMANDS --
WE WILL AS A AS AN OUTCOME OF
THE COMP OR THE COMPREHENSIVE
NEEDS ASSESSMENT --
UP IT OR THEY'LL WHICH WILL
DESCRIBE IMPROVEMENTS TO THE
FACILITY NECESSARY INTO THE
FUTURE. TO MAKE SURE WE MAINTAIN
THE HIGHEST RE OF PUBLIC SAFETY --
THAT THAT WILL HAVE ITS OWN
PROJECTS AND THOSE PROJECTS WILL
BE ONES THAT WOULD BE --
DESIGNED AND CONSTRUCTED AS PART
OF THIS ACT --
IN TERMS OF THE COST FACTOR ON
THOSE PROJECTS THEY HAVE THE YOU
KNOW THE IN THOSE WE WOULD YOU
KNOW EFFECTIVELY HAVE THE LUXURY
OF OF DESIGNING AND REVIEWING
THOSE DESIGNS AND MUCH GREATER
DEGREE OF OF MANAGEMENT OVER
TIME AS THOSE.
AS THOSE KINDS OF IMPROVEMENTS
ARE MADE --
AND I WOULD EXPECT THAT THE
DEPARTMENT --
WOULD DO SO IN THE CONTEXT OF A
BROADER --
SUITE OF TRANSPARENCY KINDS OF
ISSUES -- WE
NEED TO ADDRESS AS IT RELATES --
TO YOU KNOW.
THOSE KINDS OF PROJECTS
DORAVILLE BUT ALSO ANY NEW KIND
OF PROJECT THAT COMES ON LINE --
AND ONE OF THE WAYS IN WHICH WE
WOULD DO SO IS --
IS DISCLOSING ON A MORE REGULAR
BASIS --
WHERE WE ARE WITH OUR --
WHERE WE ARE IS OUR COSTS AND --
AS IT PERTAINS TO THE TO THE
WATER FIX IN PARTICULAR --
WE DO HAVE COST ESTIMATES OUT
THERE --
THEY DO HAVE A 37% CONTINGENCY --
TUNNEL PROJECTS --
TECHNICALLY HAVE A A MORE DEGREE
A HIGHER DEGREE OF OF COST
UNCERTAINTY AND THAT'S WHY THE
37% CONTINGENCY IS ALREADY BUILT
INTO THE THE COSTS AS DESCRIBED --
ADMIN ITSELF --
THROUGH --
MR LEDESMA'S LEADERSHIP IS --
IS I THINK MAKING SOME IMPORTANT
IMPROVEMENTS IN TERMS OF
BRINGING ON A CHIEF FINANCIAL
OFFICER THAT WOULD BE A NEW
POSITION AT THE DEPARTMENT IT'S
GOING TO BE CRITICAL --
FOR HOW WE MANAGE THE STATE
WATER PROJECT'S FINANCES SO THAT --
THE PUBLIC WATER AGENCIES WHO --
WHO ESSENTIALLY PAY FOR THE
STATE WATER PROJECT AND OF THE
STATE OF CALIFORNIA THAT HAS
IMPORTANT --
OVERSIGHT AND AN INTEREST IN IN
THAT UTILITY RUNNING AS COST
EFFECTIVELY AS POSSIBLE THAT
THAT FOLKS HAVE THAT INFORMATION
AND WE'RE DOING JUST A MUCH
BETTER JOB AT PROACTIVELY
COMMUNICATING WHAT THE
INVESTMENTS IN TAIL AND AND WHY
THEY'RE NECESSARY.
I THANK YOU FOR THAT.
LET ME JUST ANOTHER FOLLOW UP
THEN.
THIS WOULD RELATE TO THE
UTILIZATION OF THE PROP ONE BOND
MONEY.
THE WATER COMMISSION HAS JUST
MADE SOME DECISIONS [inaudible]
ABOUT THAT. TO WHAT DEGREE WILL
THEN NOW THE DEPARTMENT OF WATER
RESOURCES ENGAGE.
BUT NOW I'M SPECIFICALLY
REFERRING TO SITES RESERVOIR.
THEN THE HAVE BEEN ACCORD
CERTAIN AMOUNT OF MONEY AND THEY
ARE.
SEEKING OTHER REVENUE SOURCES.
BUT HOW AND WHEN WILL THE
DEPARTMENT NOW ENGAGED IN THAT
PARTICULAR PROJECT.
WELL WE WOULD ENGAGE IN IN
MULTIPLE WAYS --
AND AND PROJECTS THAT ARE
SUPPORTED STORAGE PROJECTS THAT
ARE SUPPORTED BY PROPOSITION.
ONE AND AS YOU KNOW THE WATER
COMMISSION THERE --
THEIR DECISION WAS TO
EFFECTIVELY ESTABLISH A MAXIMUM
ELIGIBILITY.
FOR A PUBLIC DOLLARS THAT --
WOULD BE FOCUSED ON PUBLIC
BENEFITS AS DESCRIBED.
AS DESCRIBED IN THE LAW AND AND
WHAT THAT ENTAILS FOR THE
DEPARTMENT WE HAVE A SPECIFIC
ROLE AND HAD A SPECIFIC ROLE IN
FRONT OF THE WATER COMMISSION --
TO ESTABLISH --
A MONETARY VALUE ASSOCIATED WITH --
RECREATIONAL --
POTENTIAL ITS EMERGENCY RESPONSE
BENEFITS AND FLOOD KIND OF FITS
SO ANY --
WATER PROJECT --
THAT HAS RECEIVED OUR STORAGE
PROJECT THAT HAS RECEIVED PROP
ONE DOLLARS OR WOULD IS IN
ANTICIPATION OF RECEIVING PROP
ONE DOLLARS --
THE DEPARTMENT WOULD ENGAGE WITH
THOSE PARTIES WHO ARE THE
PROJECT SPONSORS --
AND ENTER INTO A CONTRACT --
SUCH THAT AS THE PROJECT IS
DESIGNED AND OPERATED THE STATE
OF CALIFORNIA WOULD BEIN
RECEIPT OF THOSE KINDS OF
BENEFITS THE RECREATIONAL THE
FLOOD CONTROL IN THE EMERGENCY
RESPONSE.
SITES RESERVOIR OF COURSE --
IS -- HAS AN
ADDITIONAL ELEMENT --
IN PARTICULAR --
THAT RELATES TO THE POTENTIAL
INTEREST OF STATE WATER
CONTRACTORS INDIVIDUAL STATE
WATER CONTRACTORS AND BUYING
INTO THAT PROJECT --
AND SO THE DEPARTMENT OF WATER
RESOURCES --
SHOULD THAT PROJECT PROCEED
QUITE A BIT OF WORK FIND MORE
FOR THAT PROJECT IS IN THE
FINANCING PARTNERS.
BUT SHOULD THAT PROJECT --
PRECEDE THE DEPARTMENT WOULD --
NEED TO ENTER INTO ARRANGEMENTS
WITH THOSE INTERESTED STATE
WATER CONTRACTORS --
TO ESTABLISH --
THE APPROPRIATE LEGAL MECHANISMS --
FOR MOVING WATER STORED IN SITES
FOR THE BENEFIT OF THOSE STATE
WATER CONTRACTORS.
SOUTH OF THE DELTA AND THAT
WOULD ENTAIL A SIGNIFICANT
AMOUNT OF OF DISCUSSION AND AND
LEGAL ARRANGEMENTS TO TO ENABLE
THAT INVESTMENT TO HAPPEN.
AND AS YOU ACCOUNT FOR THIS.
YOU MENTIONED CERTAIN CRITERIA
IS ONE OF THE CRITERIA HUMAN.
USE OF WATER.
WHICH BE DAGGER CULTURAL USE
DOMESTIC INDUSTRIAL USE OF WATER.
WHILE I WOULD ANTICIPATE --
I DIDN'T HEAR THAT SAID AND THAT
IS ONE OF THE REQUIREMENTS THAT
THERE'S THE HUMAN WATER RIGHT IN
CALIFORNIA RIGHT SO SO WHAT I
WAS REFERRING TO SIR WAS THE THE
SPECIFIC PUBLIC BENEFITS.
ALL THE STORAGE PROJECTS --
THAT WOULD EVENTUALLY BUILDING
BE BUILT THAT WOULD HAVE A A
LOCAL FINANCING COMPONENT SOME
OF THEM COULD HAVE A FEDERAL
FUNDING COMPONENT.
AND THOSE WOULD CERTAINLY HAVE --
NEEDS AND GOALS AND OBJECTIVES
THAT ARE SPECIFIC TO PROVIDING
CLEAN WATER TO TO FARMS IN
COMMUNITIES IN CALIFORNIA.
AND TO WHAT DEGREE.
ARE YOU GUIDED BY THE TWO
THOUSAND AND NINE LEGISLATION.
THE CAPE BROUGHT FORTH THE NEW
WATER PLAN FOR CALIFORNIA YOU
MENTION THE WATER PLANT AWHILE
AGO IS THAT THE WATER PLAN
YOU'RE TALKING ABOUT UPDATING.
I KNOW THAT WAS A SEPARATE UNDER
THE WATER CODE AND CALIFORNIA'S
D. W. R. AS REQUIRED TO PUT A
PLAN TOGETHER EVERY FIVE YEARS.
SO OUR LAST ONE WOULD HAVE COME
OUT IN --
TWENTY THIRTEEN AND THIS IS THE
FIVE YEAR UPDATE OF THAT OF THAT
WATER PLANT I SEE.
THOUGH DO YOU FEEL.
GUIDE INDEED REQUIRED TO BE
GUIDED BY AN AD HERE.
TO THE WATER PLANT OF NINE
THOUGH THE FOUND FINDINGS AND
RECOMMENDATIONS OF THAT WATER
PLAN OF NINE IS THAT GOING TO BE
ALSO RECTOR MAC MOST CERTAINLY
YES OKAY THANK.
YOU I I DID A QUICK QUESTION FOR
THE LEDGE ANALYSTS.
ANALYSTS DO YOU BELIEVE THE
YOU'RE SO FAR AND I'VE.
REVIEWED YOUR DOCUMENTS.
CARDS ARE THERE ENOUGH
[inaudible]
CONTROLS.
OF THE LEGISLATURE.
AS WE PROCEED FORWARD.
EXPANDING BILLIONS OF DOLLARS.
HOURS ARE GOING TO BE OUT OF THE
CONTROL OF THE LEGISLATURE.
ARE ACTUALLY I THINK WE HAVE
LONG RECOMMENDED --
THAT AN IMPORTANT LEGISLATIVE
ROLE FOR OVERSIGHT OVER THE
STATE WATER PROJECT WHETHER
WE'RE TALKING ABOUT ADDITIONS TO
THE STATE WATER PROJECT OR
EXISTING ONE EXAMPLE WE
DISCUSSED EARLIER AS WE'VE
RECOMMENDED.
I BRING THE PROJECT ON BUDGET
RATHER THAN HAVING THE FUNDING
BE CONTINUOUSLY PERFORATED SO
THAT THERE'S AN ANNUAL CHECK IN
THROUGH THE LEGISLATIVE BUDGET
PROCESS ON EXPENDITURES AND AND
FUNDING SO THAT'S ONE AVENUE BUT
CERTAINLY GIVEN THE MAGNITUDE OF
NOT ONLY THE DOLLARS IN THEIR
PUBLIC DOLLARS COMING.
FROM THE PUBLIC THROUGH PUBLIC
WATER AGENCIES BEING SPENT BUT
ALSO THE IMPORTANCE TO THE
VITALITY OF CALIFORNIA THE WATER
THAT -- IT'S-IMPORTANT THAT THAT YOU ALL AS
AN ELECTED BODY HAVE SUFFICIENT
OVERSIGHT AND SO LOOKING FOR
AVENUES TO INCREASE THAT WE
THINK IS ALWAYS A GOOD IDEA
YOU'VE STILL THAT ROUTE.
WOULD REQUIRE ADDITIONAL
LEGISLATION OR DO YOU THINK THE
LEGISLATURE IS NOW SUFFICIENTLY
WITH IT'S POWERS.
EMPOWERED. TO EXERCISE CERTAINLY
YOU HAVE.
RIGHT A BIT OF OF OPPORTUNITY
THROUGH OVERSIGHT HEARINGS THAT
YOU COULD EXERCISE MORE GREATLY
THAN YOU CURRENTLY DO BUT I'M AT
THINGS LIKE CHANGING THE
BUDGETARY PRACTICES OR REQUIRING
CERTAIN REPORTS COMING TO YOU
WOULD REQUIRE STATUTORY CHANGES.
AND WE STILL HAVE SOME CONTROL
OVER THE BUDGET ITSELF DO WE NOT.
THROUGH POSITIONS THAT'S REALLY
THE THE PEACE THAT COMES BEFORE
YOU EACH YEAR IS HOW MANY IF
THEY ARE REQUESTING NEW
POSITIONS OF STATE EMPLOYEES
THAT'S THAT'S REALLY THE NEXUS
OF THIS POINT.
LOOK WHAT.
LET LET LET ME GET TO SOMETHING
MORE SPECIFIC I MENTIONED AWHILE
AGO GRAVE CONCERNS ABOUT HOW THE
COSTS OF WAR WILL HAVE EXPLODED.
NOW I UNDERSTAND PART OF THE
REASON FOR THE FAILURES F THE
LAST FIFTY YEARS IN THERE HAPPEN
TO MAKE UP FOR THAT.
AND WHATEVER YOU DO NOW IS ON A
NEW BASIS AND WITH NEW STANDARDS
[inaudible]
BUT DO WE HAVE AN ABILITY.
TO PREVENT SUCH THINGS AS WHAT
HAPPENED OR WILL HE END THIS
OVER RUN THAT WE'RE DEALING WITH
RIGHT NOW. FOR THAT THAT FROM
HAPPENING GOING FORWARD.
YEAH AND I GUESS I SHOULD HAVE
CLARIFIED YOU DO HAVE A LARGE
PIECE OF DATA WE OURS BUDGET
THAT COMES BEFORE YOU WERE
YOU'RE JUST NOT THE STATE WATER
PROJECT THAT'S THE PIECE THAT'S
CONTINUOUSLY PURPOSE OF THEIR
DAMN INSPECTIONS BUDGET AND
THERE WAS ADDITIONAL FUNDING
PROVIDED AND AND REQUIREMENTS.
I GUESS ACTUALLY SOME FUNDING
AND ALSO AUTHORITY --
TO CHARGE DAM OWNERS ADDITIONAL
FEES TO HELP SUPPORT THEIR WORK
SO -- THERE
ARE CERTAINLY AVENUES OF D. TO
BE OURS BUDGET THAT DO COME
BEFORE YOU BUT THAT THAT FUNDING
FROM THE STATE WATER PROJECT TO
SUPPORT SEA WATER PROJECT
ACTIVITIES TYPICALLY ARE THE
CONTINUOUSLY APPROPRIATED PIECE
WELL IN THIS BUDGET I THINK WE
MADE SOME VERY SIGNIFICANT
PROGRESS IN TERMS OF SOME.
REHABILITATION.
OF THE CONVO THE MANAGER THANK
YOU FOR THE OPPORTUNITY
APPRECIATE YOU BEING HERE
SENATOR NELSON WE'RE GOING TO
CIRCLE BACK TO DOCTOR PAN.
THANK YOU MADAM CHAIR AND I
APPRECIATE DOES I JUST WANT TO
CLARIFY --
THE THE POINTS THAT WERE MADE
EARLIER SO I SELF JUST TO BE
CLEAR SO I UNDERSTAND THAT THIS
ART CHAIR HAS ARTICULATED. ONE
PIECE THAT YOU WILL BE LOWER
THAN WHAT THE WATER FIXES WITH A
LONGER PERIOD OF TIME OF COURSE
YOU'RE ABLE TO FINANCE OVER A
LONGER PERIOD OF TIME OKAY
[inaudible]
GOT THAT.
THERE IS.
THEN YOU'RE WORKING ON A
SEPARATE SET OF WATER FIX
AMENDMENTS THAT.
I HEARD THAT WE WILL HOPEFULLY
BE DISCUSSING --
PRIOR TO THEIR APPROVAL --
THE LEGISLATURE BUT I ALSO JUST
WANT TO CLARIFY BECAUSE THERE'S
ALSO ANOTHER MINNESOTA SIDE FROM
EXTENDING THE CONTRIBUTION OF
THE LENGTH OF YOUR FINANCING
YOURBONDS THAT.
THAT ACTUALLY CHANGED OUT THIS
AMENDMENT BASICALLY.
ALLOWS THE DEPARTMENT ISSUE
BONDS IN CHARGE CONSTRUCTORS FOR
THE FINANCING COSTS OF REPAIRS
IN CAPITAL PROJECTS REGARDLESS
OF WHETHER THE FACILITIES
RESISTANCE PRIOR TO JUNE FIRST
NINETEEN EIGHTY SEVEN WHICH IS A
CURRENT CONTRACT REQUIREMENTS SO
THAT REQUIREMENTS BEEN CHANGED
SO NOW THERE'S NO DATE.
AND TO FINANCE OTHER CAPITAL
PROJECTS THAT ARE NOT ALREADY
LISTED IN THE CONTRACT IF THE
DEPARTMENT LEAST 80% EFFECTIVE
CONTRACTORS AGREE WHICH
BASICALLY MEANS LOTS A PRISON
THE CONTRACTORS AND THE
DEPARTMENT SAVE.
FINE WE CAN FINANCE ANYTHING
OUTSIDE OF THE EXISTING
CONTRACTS.
SO MY QUESTION IS WILL THIS
PROVISION THIS CHANGE IN THE
CONTRACTS.
B. E. IS OUR WILL YOU CAN YOU
ASSURE US THAT THIS PROVISION
WILL NOT BE USED SO THIS IS A
SITE FROM LET'S SAY BE ABLE TO
DO A THIRTY YEAR BOND VERSES
SEVENTEEN YEAR BOND THAT THIS
PROVISION WILL NOT BE USED. FOR
THE WATER EFFECTS IN OTHER WORDS
BECAUSE ACTUALLY YOU BASED ON
THE LEASE WHAT I READ HERE 80%
THE CONTRACTORS AND YOU SAY.
HEY WE'RE GOOD WE'VE GOT FLIPPED
HIS BOND GO BUILD SOMETHING YOU
COULD BUILD SOMETHING WHATEVER
IT IS SO CAN YOU ASSURE ME THAT
THIS PROVISION WILL NOT BE USED
AT THE I GOT IF YOU WORK ON SOME
WATER FIX AMENDMENTS MAY HAVE
pCETERA.
BUT THAT THIS PROVISION WILL NOT
BE USED IN AND AND AND AND AND
AND AND FINANCE --
PROJECTS THAT BABY OBJECTED BY A
SUBSTANTIAL PORTION OF PEOPLE
CALIFORNIA CORRECT NAME WITH
BEFORE YOU ANSWER YOU CLEAR WITH
THE QUESTION IS I AM CLEAR
THINKING OKAY. TO MAKE SURE.
THIRD ROUND OF CLARIFICATION
ALRIGHT [inaudible]
YES YES.
I I WILL BE USED KNOW IT WHAT
CAN YOU CLARIFY THAT IT SAYS
RIGHT.
CAN YOU CLARIFY THAT THIS
AMENDMENT WILL NOT HE USES OKAY
I'M SAYING GAS IT WILL NOT BE
USED FOR THE WATER FIX OKAY I
JUST WANNA BE VERY CLEAR ON THAT
OKAY THANK YOU.
THIS IS A ANY OTHER QUESTIONS.
I I IN IN HEARING --
DIRECTOR NAMES BEFORE WE MOVE ON
TO HEARING FROM CONTRACTORS WHO
WILL BE THE NEXT THE FOCUS OF
THE NEXT PANEL --
I THINK I APPRECIATE YOUR
WILLINGNESS IN THE FACT THAT YOU
HAVE HEARD.
MULTIPLE MEMBERS OF THE
LEGISLATURE MISTER FREEZE
REPRESENTING THE ASSEMBLY TODAY --
MY COLLEAGUE FROM BOTH SIDES OF
THE AISLE IN THIS INCIDENT.
EXPRESS A REAL DESIRE TO BE
ENGAGED --
BEYOND THE POINT OF TODAY'S
HEARING WHICH IS TO ADDRESS THE
CURRENT CONTRACT A MINUTE BEFORE
US BUT TO ENGAGE IN A
CONVERSATION AROUND WATER FIX.
AND SO -- AS
CHAIR THE JAIL BC WE WILL ENGAGE
WITH YOU IN YOUR DEPARTMENT. TO
HOPEFULLY COME TO SOME AGREEMENT
IN TERMS OF WHAT WE CAN EXPECT
FROM YOU.
ON BEAT THE GL BC OR OTHER --
INSISTS HE WAS IN THE
LEGISLATURE PRIOR TO THE
FINALIZATION OF THE WATER FIX
AMENDMENT.
GREAT.
WITH THAT LET ME INVITE THE
THIRD PANEL WE'RE GOING TO ASK --
THE DIRECT YOU TO STAY.
IF YOU DON'T MIND --
WE'LL ASK YOU TO GERMAN PLEASE
IF YOU DON'T MIND TO MAKE SPACE
AT THE TABLE THE THIRD ON THE
FRONT ROW THERE IN CASE WE NEED --
TO TAP INTO YOUR EXPERTISE ONCE
AGAIN THANK YOU FOR BEING HERE
WE'RE GOING TO ASK.
CONTRACT REPRESENTATIVES TO STEP
FORWARD ROM BOTH METROPOLITAN
WATER DISTRICT.
AND THE ALAMEDA COUNTY FLOOD
CONTROL AND WATER CONSERVATION
DISTRICT ZONE.
SEVEN AND A WHEEL ALIGNMENT
INTRODUCED HIMSELF [inaudible]
THANK YOU [inaudible]
OKAY. SEVEN PRONOUNCE YOUR LAST
NAME FOR ME.
IT'S A PARTY A BOOKING FEE I
WOULD'VE GOTTEN THAT RIGHT I'M
GLAD I ASKED WE'RE GOING TO HEAR
FROM MR POTTY A FIRST
REPRESENTING AGAIN THE
METROPOLITAN WATER DISTRICT OF
SOUTHERN CALIFORNIA THANK YOU.
THANK YOU CHAIR MITCHELL AND
GOOD AFTERNOON --
MEMBERS OF THE COMMITTEE.
MY NAME IS DEVIN A POTTY --
AND I'M THE ASSISTANT GENERAL
MANAGER AND CHIEF OPERATING
OFFICER OF THE METROPOLITAN
WATER DISTRICT OF SOUTHERN
CALIFORNIA.
METROPOLITAN IS A STATE
ESTABLISH COOPERATIVE OF TWENTY
SIX CITIES AND WATER AGENCIES
THAT PROVIDE DRINKING WATER TO
APPROXIMATELY NINETEEN MILLION
PEOPLE AND SIX SOUTHERN
CALIFORNIA COUNTIES.
METROPOLITAN IMPORTS WATER FROM
NORTHERN CALIFORNIA AND THE
COLORADO RIVER TO SUPPLEMENT
LOCAL SUPPLIES.
AND WE HOLD A LONG TERM CONTRACT
WITH THE DEPARTMENT OF WATER
RESOURCES FOR PARTICIPATION
RATES IN THE STATE WATER PROJECT.
TODAY ALL PROVIDE AN OVERVIEW OF
WHY IT'S NECESSARY TO EXTEND THE
STATE WATER PROJECT CONTRACTORS
TO ENSURE RELIABLE SUPPLY TO
ABOUT TWENTY SIX MILLION
CALIFORNIANS.
AND APPROXIMATELY THREE QUARTERS
OF A MILLION HERE A GATED ACRES.
MY TESTIMONY FOCUSES ON THE
ISSUES RELATED TO D. W. OURS
ABILITY TO ISSUE REVENUE BONDS
TO SMOOTH THE STATE THROUGH THE
STATE WATER POJECT COSTS.
COMMONLY REFERRED TO AS THE
FINANCING COMPRESSION ISSUES.
PRIOR WILL BE PROVIDING
TESTIMONY ABOUT CONTRACT
LANGUAGE THAT IMPROVES THE
FINANCIAL INTEGRITY OF THE STATE
WATER PROJECT AND WHY THIS IS
IMPORTANT TO US AS PUBLIC WATER
AGENCIES. FOR OVER TEN YEARS THE
PUBLIC WATER AGENCIES THE
CONTRACT WITH D. W. R. HAVE
ACKNOWLEDGED THE NEED TO EXTEND
THE LONG TERM WATER SUPPLY
CONTRACTS. TO ALLOW D. W. R. TO
ISSUE BONDS BEYOND. TWENTY
THIRTY FIVE TO ACHIEVE THIS DID
YOU ARE AND THE PWA IS ENGAGED
IN TWENTY THREE PUBLIC
NEGOTIATING SESSIONS SPANNING
FROM MAY OF TWENTY THIRTEEN
THROUGH JUNE OF TWENTY FOURTEEN
ALTERNATELY RESULTING IN AN
AGREEMENT IN PRINCIPLE.
D. W. R. THEN RELEASED A DRAFT
ENVIRONMENTAL IMPACT REPORT FOR
PUBLIC REVIEW AND COMMENT IN.
TWO THOUSAND SIXTEEN SO AT THIS
POINT THE SECRET PROCESS IS
NEARLY COMPLETE.
AND THE AGREEMENT OF PRINCIPLES
BEEN CONVERTED INTO THE CONTRACT
LANGUAGE THAT WE'RE DISCUSSING
TODAY.
EVEN WITHOUT CONSIDERING
CALIFORNIA WATER FIX OR THE
ORVILLE SPILL WAY REPAIRS.
THE PUBLIC WATER AGENCIES HAVE
PROJECTED THAT BY TWENTY THIRTY
FIVE D. W. R. WILL NEED TO
INVEST SOMEWHERE BETWEEN TWO AND
A HALF AND THREE BILLION DOLLARS.
TO REPLACE AND REPAIR AND AGING
SO THIS IS SIMPLY THE NORMAL
UPKEEP OF THE CRITICAL
INFRASTRUCTURE ON THE STATE
WATER PROJECT.
THAT INFRASTRUCTURE IS SERVING
ROUGHLY TWENTY SIX MILLION
CALIFORNIANS.
EXAMPLES OF THIS KIND OF WORK
INCLUDE REFURBISHING AND
REPLACING PUMPS AT THE ADMIN SIM
PUMPING FACILITY.
GW OURS DELTA COMPLIANCE PROGRAM.
SEISMIC UPGRADES TO CISCO DAMN
AT ST LOUIS RESERVOIR AND FIRE
SYSTEM UPGRADES.
AT FACILITIES THROUGHOUT THE
STATE WATER PROJECT.
UNFORTUNATELY IN CARRYING OUT
THIS IMPORTANT WORK D. W. R.
ISN'T ABLE TO USE THE FINANCIAL
TOOLS THE TYPICAL MODERN
UTILITIES WOULD USE.
THEIR CONSTRAINED TO ISSUING
BONDS THE ONLY FINANCE THESE
FACILITIES.
TO TWENTY THIRTY FIVE RIGHT NOW
THAT MEANS YOU'RE ONLY ABLE TO
ISSUE BONDS FOR SEVENTEEN YEARS
WHEN THIRTY YEARS OR POSSIBLY
FORTY YEAR BONDS WOULD BE MORE
APPROPRIATE.
THIS CREATES A SERIOUS COST
COMPRESSION ISSUE FOR US IS
WATER AGENCIES AND ONLY SERVES
TO ARTIFICIALLY DRIVE UP THE
WATER RATES FOR MILLIONS OF
LOCAL RATEPAYERS. TO DEMONSTRATE
THE FINANCIAL COMPRESSION ISSUE
WE PROVIDED A HAND OUT WITH
GRAPHICS THAT MIGHT BE HELPFUL
IN REFERRING TO HAND OUT THAT
LOOKS LIKE THIS.
THE FIGURES IN THIS HANDOUT SHOW
HOW CAPITAL CHARGES WILL
INCREASE.
AT REMARKABLE RATES FOR
MUNICIPAL INDUSTRIAL AGENCIES
AND AGRICULTURAL AGENCIES IF THE
CONTRACT ISN'T EXTENDED.
THE IMPROVEMENTS TO THESE
FACILITIES WHICH WOULD LAST FOR
MANY YEARS BEYOND TWENTY THIRTY
FIVE HAVE TO BE PAID IN AN EVER
SHRINKING PERIOD OF TIME.
THE GRAPHICS ALSO SHOW HOW THE
ANNUAL COST WOULD BE
SIGNIFICANTLY LOWER.
BY SIMPLY EXTENDING THE CONTRACT
THUS ALLOWING D. W. R. USE BOND
RATIONS THAT ARE MORE CONSISTENT
WITH TYPICAL CAPITAL IMPROVEMENT
PROGRAMS.
THIS AMENDMENT WOULD EXTEND THE
STATE WATER CONTRACT AND ALLOWED
YOU TO YOUR TO IMPLEMENT BILLING
PROVISIONS CONSISTENT WITH
MODERN UTILITY BEST MANAGEMENT
PRACTICES.
THESE THINGS WOULD REDUCE COSTS
TO RATEPAYERS AND HELP MAINTAIN
THE CRITICAL INFRASTRUCTURE
MILLIONS OF CALIFORNIANS DEPEND
ON THANK YOU FOR YOUR TIME THIS
MORNING.
THANK YOU VERY MUCH A COLLEGE
WHEN WE HEAR FROM BOTH PANELS
BEFORE WE OPEN UP FOR QUESTIONS --
SO MISS PRIOR WELCOME.
GOOD AFTERNOON MY NAME IS
VALERIE PRIOR AND I'M THE
GENERAL MANAGER FOR THE ALAMEDA
COUNTY FLOOD CONTROL AND WATER
CONSERVATION DISTRICT ZONE.
SEVEN WE ARE LOCATED IN EASTERN
ALAMEDA CAN PROVIDE WATER FOR
TWO HUNDRED FORTY THOUSAND
RESIDENTS IN LIVERMORE DUBLIN
PLEASANTON AND SAN RAMON AND WE
ALSO SERVE AGRICULTURAL
CUSTOMERS.
I AM GOING TO PROVIDE AN
OVERVIEW OF THE AMENDMENTS
RELATED TO D. W. R. STATE WATER
PROJECT FINANCIAL INTEGRITY AS A
LARGE PUBLIC UTILITY WHICH IS
VERY IMPORTANT TO THE PUBLIC
WATER AGENCIES.
DID OF YOURS RESERVE LEVELS ARE
SET IN THE EARLY NINETEEN
NINETIES WHEN ANNUAL REVENUES
AVERAGE THREE HUNDRED AND EIGHTY
MILLION DOLLARS.
THE PROPOSED AMENDMENT TO
INCREASE THE RESERVE LEVEL FROM
THIRTY TWO MILLION DOLLARS TO
ONE HUNDRED AND FIFTY MILLION
DOLLARS.
REFLECTS MORE APPROPRIATE
RESERVE LEVEL FOR A SIX BILLION
DOLLAR WATER UTILITY WITH ONE
POINT TWO BILLION DOLLARS IN
ANNUAL REVENUE.
MANY UTILITIES MAINTAIN
OPERATING RESERVES OF
APPROXIMATELY 25% OF OPERATING
EXPENDITURES FOR EMERGENCY IN
CAPITAL AND THIS PROPOSED AMOUNT
FOR D. W. R. IS MORE IN LINE
WITH INDUSTRY PRACTICES ALTHOUGH
IT MAY BE A BIT LESS AN INDUSTRY
PRACTICES.
NEW RESERVE FUNDS THEY'RE
CLEARLY DEFINED AS TO THE USE
AND PURPOSE FOR EACH ONE OF THE
FUN SO THIS PROVIDES
TRANSPARENCY TO THE PUBLIC AND
THE RATE PAYERS.
THE NEW RESERVE FUNDS WILL
PROVIDE THE STATE WATER PROJECT
FINANCIAL STABILITY AND TIMES OF
OPERATIONAL EMERGENCY AND THIS
AGAIN PROVIDES RATE STABILITY
FOR THE RATE PAYERS.
THE NEW RESERVE FUNDS WILL ALSO
HELP MAINTAIN HIGH BOND RATINGS
WHICH KEEP INTEREST COSTS LOW
AND AGAIN LEAD TO COST SAVINGS
FOR THE RATE PAYERS.
I'D ALSO LIKE TO ADDRESS A
DISCUSSION ABOUT --
AMENDING ARTICLE ONE H. H. OF
THE CURRENT CONTRACT IN LEADING
UP TO THIS HEARING THERE'S A
LITTLE BIT OF CONFUSION OVER THE
PURPOSE OF THE MODIFICATION. TO
ARTICLE ONE H. H. IT'S IMPORTANT
TO NOTE THAT THIS PROVISION DOES
NOT ADDRESS THE FINANCING OR
COST ALLOCATION OF CALIFORNIA
WATER FIX WHICH AS WE DISCUSS
WILL BE A SEPARATE CONTRACT
AMENDMENT.
AS CURRENTLY DRAFTED IN THE
ORIGINAL CONTRACTS ONE H. H.
SPECIFICALLY LISTS WHAT CAN BE
CAPITALIZED AND DOES NOT INCLUDE
MORE MODERN PROJECTS SUCH AS
SKATER OR COMMUNICATION SYSTEMS
OR NEWER IMPROVEMENTS TO THE
SYSTEM.
ANY ITEMS THAT ARE NOT INCLUDED
IN THIS ARTICLE WHICH WAS
WRITTEN MORE THAN FIFTY YEARS
AGO WOULD HAVE TO BE CASH
FINANCE WHICH WOULD RESULT IN A
MORE.
EXPENSIVE MEANS OF FINANCING
LONG TERM CAPITAL ASSETS THIS
UPDATED LANGUAGE WILL ALLOW D.
W. R. TO DEBT FINANCE THESE
INVESTMENTS AS LONG AS OUR
GENERAL AGREEMENT AMONG THE
CONTRACTORS WHO WOULD PAY FOR
THESE IMPROVEMENTS.
AGAIN THESE WOULD INCLUDE ITEMS
THAT WERE NOT LISTED IN THE
ORIGINAL CONTRACT BECAUSE THEY
WEREN'T CONTEMPLATED AT THAT
TIME SUCH AS STATUS SYSTEMS --
MORE MODERN COMMUNICATIONS
SYSTEMS MORE MODERN SOFTWARE
SYSTEMS.
I'D ALSO LIKE TO POINT OUT THAT --
WE'VE BEEN TALKING ABOUT
EXTENDING THE CON FOR MULTIPLE
YEARS LONGER THAN THIRTY YEARS
IN THE USE OF THIRTY YEAR BONDS.
THE INFRASTRUCTURE THAT WE'RE
TALKING ABOUT HAS LONGER LIVES
THAN THIRTY YEARS --
IT CAN BE COMMON FOR PUMP
STATIONS TO HAVE FIFTY OR FORTY
YOUR LIVES PIPELINES CAN HAVE
FIFTY TO SEVENTY FIVE YOUR LIVES
SO IN DEVELOPING.
THE FIFTY YEAR ASSET MANAGEMENT
PLAN IT WOULD BE HELPFUL FOR D.
W. ARE TO BE ABLE TO LOOK AT
ISSUING.
YOU KNOW THIRTY OR FORTY YEAR
BONDS AND MULTIPLE TIMES DURING
THE PLANNING INTERVAL SO THAT
WOULD PROVIDE BETTER FINANCIAL
TRANSPARENCY.
FOR THE RATE PAYERS IT WOULD BE
PAYING FOR THESE COSTS.
THESE AMENDMENTS TO THE JUST THE
BILLING PROBLEM PROVISIONS WILL
PROVIDE STABLE RATES AND CHARGES
FOR THE TWENTY SIX MILLION
CALIFORNIANS THAT WILL SERVE.
THE STABILITY WILL HELP US AS A
PUBLIC WATER AGENCIES AND OUR
FINANCIAL PLANNING AND THAT WILL
HELP US PROVIDE GREATER
TRANSPARENCY TO OUR RATE PAYERS.
THE MINUTES ALSO PROVIDE ENHANCE
TRANSPARENCY TO THE PUBLIC AND
THE RATE PAYERS AND THE PUBLIC
WATER AGENCIES BY CREATING THE
CHIEF FINANCIAL OFFICER --
OFFICER POSITION AND ALSO THE
FINANCE COMMITTEE THAT WE WILL
PARTICIPATE IN ON POLICY LEVEL
ITEMS.
FINALLY LIKE TO POINT OUT THAT
THE AMENDMENTS PROVIDE CHANGES
TO THE BILLING PROCESS WHICH
WILL BE EASIER FOR DATE OF YOUR
TO ADMINISTER EASIER FOR D. W.
ON THE CONTRACTORS TO UNDERSTAND.
AND WILL ALIGN COST RECOVERY
WHICH WITH WITH WHEN THE CHARGES
ARE ANCHORED WHICH WILL BE
CRITICAL FOR PUBLIC WATER
AGENCIES TO PROTECT THEIR RATE
PAYERS.
AND I ALSO WANT TO POINT OUT
THAT IN.
THE PREVIOUS HEARING WAS
DISCUSSED THE POSSIBILITY OF OF
CONTRACTORS PERHAPS DOING THIS
LONG TERM FINANCING ON OUR OWN.
AND WE DON'T THINK COULD BE
FEASIBLE FOR ALL CONTRACTORS TO
DO TAT NOT ALL CONTRACTORS HAVE
ACCESS TO LONG TERM BOND MARKETS
NOR THE FINANCE STAFF TO
ADMINISTER LONG TERM FINANCIAL
ARRANGEMENTS.
ADDITIONALLY SEPARATE LONG TERM
FINANCING TRACKS TRANSACTIONS
WOULD BE ECONOMICALLY
INEFFICIENT AND WOULD INCREASE
THE OVERALL COSTS WHICH WOULD
THEN INCREASE THE COST TO THE
RATE PAYERS.
OF THANK YOU COMMITTEE FOR THIS
OPPORTUNITY HE VERY MUCH WE'RE
GONNA START WITH SEVEN TWO
NELSON AND MOVE ON TO SET A
PANTHER GINNY ALSO.
WITH THE BOTH OF YOU BE ABLE TO
REPRESENT.
THAT YOU SPEAK FOR OF ALL THE
WATER CONTRACTORS NORTH AND
SOUTH CENTRAL. TO CALIFORNIA THE
REMARKS YOU'RE MAKING THEM SEE
MORE FLEXIBLE TO YOUR OWN
AUTHORITIES.
BUT DO YOU SPEAK FOR THE REST OF
THE WATER CONTRACTORS THROUGHOUT
CALIFORNIA.
OR WHO SPEAKS FOR THEM.
SO.
I CAN CERTAINLY SPEAK FOR
METROPOLITAN WATER DISTRICT --
AS IT RELATES TO THE CONTRACT
EXTENSION I BELIEVE ALL OF THE
TWENTY NINE CONTRACTORS ON BOARD
IN TERMS OF SUPPORTING THE
EXTENSION.
YES I WOULD CONCUR --
THE STATE WATER CONTRACTORS AS A
WHOLE SUPPORT THIS EXTENSION
OKAY [inaudible]
THANK YOU.
WE SEE FOLKS SHAKING THEIR HEADS
IN THE AUDIENCE AND YOU CAN FEEL
FREE DURING PUBLIC COMMENT TO
SHARE YOUR PERSPECTIVE IF YOU SO
DESIRE [inaudible]
WELL [inaudible]
RIGHT.
I'M A LITTLE CONCERNED ABOUT.
THE DEGREE TO WHICH YOU
REPRESENT ALL THOSE OUT THERE SO
WE'LL SEE IF THEY WANT TO COME
FORWARD THEY'LL COME FORWARD
THAT.
I THINK THAT'S THE POINT THAT'LL
THANK YOU SIR THIRTY GRAND.
THANK YOU AND I DID IT FOR SO I
JUST ONE THING DIRECT NAME IT'S
FOR YOUR PREVIOUS COMMITMENT --
BECAUSE I I DO THINK THAT FIRST
OF ALL WE WANNA CHIEF THE AIMS
WHICH WERE --
THAT PRESENT AND DISCUSS I MEAN
I THINK THE YOUNG WE'RE NOT.
WE DON'T WANT TO RAISE COSTS ON
WATER USERS AND AND CONTRACTORS
RIGHT WE WANT YOU TO BE ABLE TO
DO CAPITAL IMPROVEMENTS WE WHAT
ALSO ACKNOWLEDGE THE FACT THAT
TECHNOLOGY HAS CHANGED OVER THE
PAST YEARS IT CETERA.
BUT I DO THINK THAT YOU KNOW
THERE IS THIS GOES BACK PARENTS
SEE -- AND
SO I THINK IT'S REALLY IMPORTANT
THAT.
THAT THEIR SIDE THAT THAT TRUST
IS BUILT AND I THINK THAT --
THAT'S WHY WE'RE ASKING ABOUT
THINGS LIKE YOU KNOW LEVEL HOW
MUCH FREQUENT OVERSIGHT BROUGHT
AND EVEN THE LENGTH OF THE HOW
LONG YOU ARE MAKING GO OUT
BECAUSE THE PROBLEM IS THAT IT'S
BASICALLY YOU CAN'T DIVE DOWN
AND YOU'RE DOING STUFF AND THEN
YOU POP UP EVERY YOU KNOW COUPLE
DECADES.
OR PEOPLE ARE WORRIED THAT YOU
GOT TO GET THEIR YOU KNOW THEIR
FARMS AND THEIR THEIR THEIR YOU
KNOW THEIR PROPERTY IT CETERA.
AND THAT AND THAT --
PEOPLE WON'T KNOW ABOUT IT --
IT'S ALL TOO LATE --
TO WHAT WE SIGNED ALL THE
CONTRACTS AND WE HAVE ALL THE
COMMITMENTS WE FOLLOW THE BONDS
THAT CREATES A LOT OF DISTRUST
SO -- I
APPRECIATE THAT --
HOW IMPORTANT THIS IS TO ALLOW
YOU TO GO FORWARD --
I APPRECIATE DIRECTORS COULD --
YOU KNOW WHAT SHE SAID I THINK
AGAIN WHAT TRANSPARENCY BECAUSE
YOU'RE RIGHT WHAT HAPPENS IS WE
DON'T SIT THERE AND MICRO MANAGE
EVERY LITTLE EXPENDITURE RIGHT
AND THAT IT'S BETTER.
BUT WE NEED TO KNOW THAT IF
SOMETHING IS OUT OF THE NORM OF
FEATURE NORMAL OPERATIONS ARE
NORMAL CAPITAL.
AND THAT'S GONNA START AFFECTING
A LOT OF OTHER PEOPLE THAT WE'RE
GONNA HAVE A PUBLIC DISCUSSION
ABOUT THAT GREAT --
BUT HAVING YOU COMMUNICATION
SYSTEM USES THAT NEW TECHNOLOGY
IS PROBABLY SOMETHING THAT YEAH
THAT SOUNDS GOOD GO AND DO THAT
SO BEGAN TRANSPARENCIES AND BE
REALLY IMPORTANT AND AND THE
BUILDING THAT TRUST.
THANK YOU.
THANK YOU ARE ANY OTHER
QUESTIONS.
SEEN THAT YES.
FROM ANIME IF WE'RE WINDING DOWN
MADAM CHAIR I WOULD LIKE TO
THINK AGAIN DIRECTOR NUMBERS SHE
HAS REACHED OUT AND I HAVE.
VERY MUCH VALUE TO OUR PERSONAL
COMMUNICATIONS AND YOUR ACCESS
AND RESPONSIVE TO ME THUS FAR.
THANK.
WERE FAR FROM WINDING DOWN SIR
WE HAVE ONE MORE PANEL AND
PUBLIC COMMENT.
THANK YOU VERY MUCH TO OUR
STAKEHOLDERS PAM --
WE'RE GONNA INVITE --
ROGER MOORE --
WHO IS AN ADVOCATE? TO PRESENT
HIS PERSPECTIVE THE COMMITTEE
EIGHT OF YOUR LETTER.
THANK YOU AND WELCOME.
THANK YOU VERY MUCH I'M ROGER
MOORE AND BY THE WAY I I
PROVIDED TWO LETTERS ONE WAS
PREPARED. FOR THE PREVIOUS.
HEARING.
FROM.
I HAVE GONE WAY BACK WITH THE
STATE WATER PROJECT AND REALLY
WANT TO SEE IT BRING OUT ITS
BEST WHICH WILL REQUIRE
OVERSIGHT AND ACCOUNTABILITY --
I MY INVOLVEMENT ON STATE WATER
PROJECT ISSUES GOES BACK MORE
THAN TWO DECADES.
FLYING COLLUDING LITIGATION IN
LATER NEGOTIATION ON THE
MONORAIL AMENDMENTS WHICH BY THE
WAY IS THE SOURCE OF THE
REQUIREMENT D. W. ARE FINALLY
COMMITTED TO TO ALLOW PUBLIC
PARTICIPATION.
BY IN STATE WATER CONTRACT
NEGOTIATIONS ON I AM HERE REALLY
HOPING TO NOT HAVE TO SPEND THE
NEXT TWO DECADES --
BY TRYING TO DECIPHER WHAT THE
STATE WATER PROJECT CONTRACT
MEANS -- WE
ALL HAVE BETTER THINGS TO DO BUT
I AM DEEPLY CONCERNED ABOUT WHAT
THE DELTA CAUCUS ACT APPELLEE
REFERRED TO AS THE FOG OF
COMPLEXITY SPELL SOME EXAMPLES
OF WHICH WE HAVE SEEN THIS
MORNING.
SO I WILL BE ADDED IN BACK AS
MANY TIMES AS IT TAKES TO MAKE
SURE THAT FULL TRANSPARENCY AND
ACCOUNTABILITY ACCOMPANIES THE
STATE WATER PROJECT WHICH WILL
BRING OUT ITS BASS --
IN -- RECENT --
ON MATTERS RELATING TO THE EIGHT
PUBLIC AGENCIES IN THE
SACRAMENTO VALLEY AND THE DELTA
COUNTIES --
IN THE CURRENT VALIDATION ACTION
D. W. R. BROUGHT ON WATER FIX
REVENUE BONDS I HAVE FOUR YEARS
REPRESENTED --
BUTTE COUNTY IN.
MATTERS RELATING TO OR THEY'LL
DAM AND BY THE WAY I SHOULD
POINT OUT I TAKE STRONG
EXCEPTION TO THE NOTION THAT ALL
TWENTY NINE WATER CONTRACTORS --
HAVE ENDORSED THE CONTRACT
EXTENSION THAT IS BEFORE THE IN
THE COMMITTEE ON THREE OF THEM
INCLUDING BUTTE LOOMIS AND AND
SANTA BARBARA DID NOT --
SIGN ON TO THE AGREEMENT IN
PRINCIPLE AND SINCE THEN SOME
CONTRACTORS OR MEMBERS WITHIN
LIKE SAN DIEGO FOR EXAMPLE HAVE
RAISED SERIOUS QUESTIONS ABOUT
WHAT THE DEPARTMENT'S ACTIONS
WITH RESPECT TO WATER FIX
ANOTHER THINGS IMPLIED FOR THEIR
CONTRACTS.
SO THERE ARE SERIOUS QUESTIONS
ON THE TABLE THAT MUST BE
ADDRESSED.
ON THE FIRST POINT THAT I WANT
TO WALK THROUGH IT I THINK THE
SIMPLE AS FOREIGN.
AND SOME OF YOUR IT REFERRED TO
IT AND I'VE BEEN VERY ENCOURAGED
BY WHAT YOU'VE HEARD.
AND THAT IS QUITE SIMPLY.
THIS NEEDS TO BE THE BEGINNING
NOT THE END OF THE LEGISLATIVE
OVERSIGHT AND THAT REFERS TO
BOTH SETS OF PROPOSED AMENDMENTS
THE THE CONTRACT THE SO CALLED
CONTRACT EXTENSION AMENDMENTS
WHICH ACTUALLY INCLUDE MORE.
AND THE LEADERS SET OF WATER
SUPPLY BEAMED ONES FOCUSED ON
WATER FIX.
OVERSIGHT IS DESPERATELY NEEDED
ON BOTH MATTERS AND YES THEY ARE
INTER RELATED.
ON I AM A SOCCER DAD AND I'M
GONNA RAISE WHAT I THINK IT'S A
PRETTY SIMPLE POINT HERE.
ON EVENIF YOU LOVE WHAT D. W.
R. IS TRYING TO DO INCLUDING THE
WATER FIX PART OF IT --
I WOULD DESCRIBE.
ANY ATTEMPT TO RELY THIS HEARING
TODAY AS THE OPERATIVE HEARING
REQUIRED UNDER WATER CODE ONE
FORTY SEVEN POINT.
FIVE ON THE B. FOR WHAT WHAT
WHENEVER YOU REFERRED TO BEING
OFF TO THE RACES ON THE SIXTY
DAY PERIOD BEFORE YOU EXTEND THE
CONTRACT.
IF YOU WERE TO DO THAT IT WOULD
BE THE LEGAL EQUIVALENT OF AN
OWN GOAL IT SHOULD NOT BE DONE.
THE TIMING THE THE SENSE OF
URGENCY THAT D. W. ARE AND SOME
OF THE CONTRACTORS HAVE BROUGHT
IN HERE IS A BIT OUT OF SYNC
WITH THE SEQUENCE ON
ENVIRONMENTAL AND PUBLIC REVIEW
OF THE EXTENSION AMENDMENTS.
PUBLIC COMMENTS CLOSE IN OCTOBER --
TWENTY SIXTEEN AND OF OR ON THE
DRAFT ENVIRONMENTAL IMPACT
REPORT FOR THE CONTRACT
EXTENSION PROJECT.
LOOK CAREFULLY THROUGH THE
LEGISLATIVE PACKET IN THE
MATERIALS PROVIDED AN EVEN W.
OURS WEBSITE.
WHERE ARE THE PUBLIC COMMENTS?
ON THE TWENTY SIXTEEN CRAFT E.
IR YOU WILL UNFORTUNATELY NOT
FIND THEM THERE YOU WILL FIND
SOME EARLIER SCOPING COMMENTS
BUT NOT THOSE.
WHY IF THERE IS SUCH A RUSH IS
GW ARE TAKEN SO LONG? TO RESPOND --
IN THE COMMENTS IF YOU LOOK
THROUGH THEM SCOPING AS WELL AS
THE THE COMMENTS ON THE DRAFT
DIR WERE NOT SIMPLY GARDEN
VARIETY YOU KNOW ARE ARE ALL THE
DOTS --
DOTTED AND SO FORTH KINDS OF
OBJECTIONS ON SANTA BARBARA
COUNTY OFFICIALS ASKED IN TWENTY
FOURTEEN FOR A SPECIFIC ANALYSIS
OF WHAT THE CONSEQUENCES WOULD
BE OF THE EXTENSION AMENDMENT
SPECIFICALLY FOR TAXPAYERS AND
RATEPAYERS.
WHETHER WERE VOTED THE PEOPLE
WOULD BE REQUIRED --
TIONAL PROVISIONS ARE THEY
COVERED OR THEY'RE NOT THAT
ANALYSIS HAS NEVER BEEN PROVIDED.
VIEWED IMPLEMENTS COUNTIES WERE
CONCERNED THAT.
EVEN IF OTHER APPROVALS WERE
REQUIRED IT'S BEEN HAS BEEN
DISCUSSED HERE --
THE EXTENSION AMENDMENTS BY
PLANE INDISPENSABLE ROLE IN
FACILITATING THE WATER FIX
PROJECT THEY WERE TOLD IT TURNS
OUT INCORRECTLY THAT WATER FIX
WOULD ONLY BE ADDRESSED IN THE
SECOND SET OF AMENDMENTS --
AND WE HAVE WE HAVE HEARD MORE
ABOUT THAT.
THAT TODAY IT IS VERY
UNFORTUNATE THE D. W. R. HAS SAT
ON THOSE COMMENTS FOR SO LONG
BECAUSE IT THE DAY IT WOULD BE
THE LINK BETWEEN THE TWO SETS OF
AMENMENTS AND THE REASON WHY
THERE IS AN INDISPENSABLE STEP
ON THE EXTENSION PARK FOR WATER
FIX SPECIFICALLY.
WOULD BE SO MUCH CLEARER IF
THOSE COMMENTS HAD BEEN ADDRESS.
THE REASON IT MATTERS UNDER
WATER COOLED ONE FORTY SEVEN
POINT FIVE IS THAT D. W. WARS
OBLIGATION IS TO PROVIDE THE
DETAILED TERMS AND CONDITIONS
THAT WOULD SERVE AS THE TEMPLATE.
FOR THE OTHER CONTRACTS.
IF THIS WERE TREATED AS THE
FINAL HEARING IT WOULD BE ON THE
COLLISION COURSE WITH THE SEQUEL
PROCESS WHICH MUST BE
INTERACTIVE AND ALLOW FOR
CHANGES IN RESPONSE TO PROJECT
MODIFICATION INTACT.
RELYING ON THIS IS THE HEARING
WOULD CREATE KIND OF OF A
PERVERSE DISINCENTIVE TO MAKE
IMPROVEMENTS IN THE PROJECT THAT
MIGHT IMPOSE LESS ENVIRONMENTAL
AND FINANCIAL RESULTS.
IN RESPONSE TO THAT PUBLIC
CRITICISM.
SO -- THE
REASON WHY I CALLED IT AN OWN
GOAL IS THAT THERE'S NO GOOD
REASON THAT THEY SHOULD BE THE
FINAL HEARING D. W. R. AS
CONCEDED IN ITS MATERIALS THAT
IT IS.
IT CAN NOT ACTUALLY EXECUTE
EITHER SET OF CONTRACT
AMENDMENTS INCLUDING THE
EXTENSION AMENDMENTS UNTIL IT
COMPLETES ENVIRONMENTAL REVIEW
AT LEAST ON THAT STAT --
SO THERE IS NO DEPARTMENT TO
COME BACK AND I WOULD SAY ONCE
BOTH THE INTER RELATED SETS OF
AMENDMENTS.
ARE TOGETHER AND WE KNOW MUCH
MORE ABOUT WHERE THIS PROCESS IS
GOING AND AS IT'S BEEN CORRECTLY
NOTED.
THIS MORNING.
THE COMMITTEE HAS THE DISCRETION
TO IMPOSE OTHER KINDS OF
OVERSIGHT AND PERHAPS
LEGISLATION SHOULD BE IN ORDER
AS WELL.
BOMB.
OF THERE ARE OTHER REQUIREMENTS
BESIDE SICK WITH THE NEED TO BE
MANAGED WELL THE DELTA COUNTIES
COALITION IS CORRECTLY POINTED
OUT THAT FINANCIAL DISCLOSURES
ANOTHER REQUIRED ANALYSES
UNDERWATER CODE.
ONE FORTY SEVEN HAD NEVER BEEN
PROVIDED AND THEY ALSO POINTED
OUT I THINK QUITE CORRECTLY THAT
IT WOULD BE A CLASSIC PIECE
MEALING ERROR. TO BOMB TO FAIL
TO CONSIDER THE INTERPLAY
BETWEEN THESE TWO VERY RELATED
SETS OF CONTRACT AMENDMENTS ONE
AND THE EXTENSION ON AND THE
OTHER ON WATER SUPPLY.
AMENDMENTS IN SOME THERE IS NO
DOWNSIDE TO BRINGING THE
DEPARTMENT BACK HERE THEY CANNOT
LAWFULLY FINALLY EXECUTE THE
AMENDMENTS UNTIL THEY COMPLETE
THAT PROCESS WHICH MAY GENERATE
A WHOLE LOT MORE LIGHT.
THAN THOSE SUPERFICIAL
DISCUSSION OF THESE SUBJECTS WE
HAVE SOMETIMES HEARD.
THIS MORNING --
WITH RESPECT TO THE FORTHCOMING
PROCESS ON THE WATER SUPPLY
CONTRACT AMENDMENTS ONE
CORRECTION OF I THINK THE
DEPARTMENT AT ONE POINT REFERRED
TO A NOTICE OF DETERMINATION
ISSUING.
IN IN FACT THAT WAS A NOTICE OF
PREPARATION.
THERE IS MUCH MORE TO BE DONE.
THE SECOND POINT THAT I WANT TO
RAISE TODAY.
IS THAT I THINK YOU HAVE
ACTUALLY HEARD CONFIRMATION
BEFORE THE PANEL THAT CONTRARY
TO WHAT WOULD SOMEONE PUT IT
SOMETIMES SAID BEFORE THIS
HEARING.
THE ELEPHANT REALLY IS IN THE
ROOM.
THE EXTENSION.
SEPARATELY AND EVEN IN ADVANCE
OF THE WORK --
SO CALLED WATER SUPPLY --
WATER FIX CONTRACT AMENDMENTS
WOULD TAKE AN INDISPENSABLE STEP
TO MAKE POSSIBLE REVENUE BONDS
FOR WATER FIX THAT OTHERWISE
WOULD NOT BE LAWFULLY ALLOWED
UNDER THE STATE WATER PROJECT --
CONTRACTS I AM QUITE GRATEFUL.
TO MS EHLERS OF FOUR CANDIDLY
SAYING I THINK QUITE CORRECTLY
THAT WALL OF COURSE OTHER
APPROVALS ARE INVOLVED IN THE
WATER FIX PROCESS --
IT -- BUT
THE CONTRACT EXTENSION
AMENDMENTS IN THEMSELVES WOULD I
THINK --
FREEZE WAS PERFECT AND
FACILITATE WATER PHIPPS THE LACK
OF CANDOR THAT WE FRANKLY HEARD
FROM THE DEPARTMENT TODAY
QUESTION CLEARLY AND AND
THROWING IN MORE FOG OF
COMPLEXITY.
I THINK IT SHOWS THE WISDOM OF
THE APPROACH THAT THE L. A. L.
HAS LONG ADVOCATED SUGGESTING A
MORE RIGOROUS KIND OF OVERSIGHT
OVER D. W. R. PERHAPS BRINGING
IT ON TO THE BUDGET BUT
CERTAINLY MAKING SURE.
THAT THEY THAT THAT NEED EITHER
SET OF AMENDMENTS WILL NOT
PROCEED BASED AND BLIND FAITH
THAT THEY ARE SERVING THE PUBLIC
WE HOPE THAT THEY WILL BUT WE
WILL BRING OUT THEIR BEST BY
INSURING OVERSIGHT --
THE CONTRACT EXTENSION
AMENDMENTS ARE UNFORTUNATELY
QUITE MISNAMED BECAUSE WHILE IT
IS CERTAINLY THE CASE AND IT IS
A BIG DEAL IN ITSELF THAT THERE
IS A PROPOSED FIFTY YEAR --
EXTENSION OF THE CONTRACT TERMS
pTHIS IS A BIGGER.
THERE IS AND IT IS IN FACT A
MAJOR REDEFINITION AN EXPANSION
OF WHAT COUNTS FOR REVENUE BOND
PURPOSES AS STATE OF AS AS
FACILITIES --
THAT -- THAT
WOULD IMPOSE ENORMOUS NEW RISKS
AND COSTS ON THE PROJECT WORSE
IS WHAT SOME EDITORIAL WRITERS
OF KIND OF CORRECTLY ANALOGIZE
TO A TIME MACHINE --
NOT IF IF OF WATER FIX AND
PERHAPS OTHER BIG PROJECTS IN
THE FUTURE.
BECOME COVER PROJECTS THEY WILL
BE TREATED AS IF THEY WERE PART
OF THE ORIGINAL PROJECT LIKE THE
PRE EIGHTY SEVEN FACILITIES --
WHICH ALSO RAISES A GRAVE
CONCERN ABOUT CIRCUMVENTION OF
THAT --
CONSTITUTIONAL TAX PROVISIONS.
THAT.
THAT ARE NOW IN PLACE THAT.
THEY WERE THERE ARE MAJOR RISKS
FOR REPAIRS AND TAXPAYERS THAT
HAVE NOT.
BEEN ADDRESSED --
THE FACT ISTHAT --
BE EXTENSION AMENDMENTS
THEMSELVES ARE.
INDISPENSABLE FOR REVENUE BONDS
TO BE IMPOSED FOR BEFORE WATER
FIX -- THE
URGENCY FRANKLY IS BECAUSE D. W.
R. BY TRYING TO CREATE THE
IMPRESSION OF MOMENTUM ON THE
FOUNDERING WATER FIX PROJECT.
PUT ITSELF IN A BOX BY MOVING
AHEAD TOO FAST ON TWO THINGS IT
HAS A PENDING APPLICATION FOR
FEDERAL FUNDING --
THAT AS SOON AS A FIFTY YEAR
TIME FRAME --
ALSO --
JUMPED THE GUN AND WENT TO COURT
LAST JULY TO VALIDATE REVENUE
BOND RESOLUTIONS --
FOR WATER FIX IT AS SOON THAT
THEY CAN BE PAID BACK TO TWENTY
EIGHTY FIVE AND COVER FACILITIES
THAT WOULD NOT BE ALLOWED UNDER
THE CURRENT CONTRACTS.
THE CONTRACTS THEMSELVES THOUGH
ARE NOT --
ARE ARE NOT SOUGHT FOR
VALIDATION ONE OF THE ISSUES
THAT WILL HAVE TO BE DETERMINED
THERE IS OUR BELIEF THAT THAT
THE THAT THE DEPARTMENT IS
ATTEMPTING AN END RUN AROUND
THIS VERY.
THIS VERY PROCESS.
YOU HAVE HEARD A FEW THINGS HERE
TODAY --
THAT HAVE ATTEMPTED TO DEFLECT
ATTENTION FROM THE CLEAR NEED.
TO AMEND.
THROUGH THESE SO CALLED
EXTENSION PROCESS TO ENSURE THAT
WATER FIX WILL BE COVERED BUT
FOR REVENUE BONDS --
ONE IS REFERRED TO IN THE
BACKGROUND.
MEMO -- FOR
THIS HEARING IT'S ON PAGE THREE
THE DEPARTMENT BELIEVES THAT
ARTICLE ONE EIGHTY OF THE
EXISTING CONTRACTS WHICH DEFINES
WATERFORD SYSTEM FACILITIES FOR
WHICH REVENUE BONDS MAY BE SOLD.
ALREADY AUTHORIZES THE SALE OF
BONDS TO FINANCE CONSTRUCTION OF
WATER FIXED FACILITIES.
ARTICLE ONE EIGHTY IF YOU LOOK
THROUGH THE CURRENT CONTRACTS
DOES NOT EXIST.
WATER RESISTANT FACILITIES ARE
DEFINED IN ARTICLE ONE H. H. AND
FRANKLY THE IMPORTANCE OF THIS
WOULD HAVE BEEN A LOT CLEARER IF
YOU W. R. HADN'T BURIED AND NOT
CONFRONTED THOSE COMMENTS ON THE
CONTRACT EXTENSION DRAFT ER.
ALTHOUGH WE'VE HEARD A
SUGGESTION FROM ITS PRIOR THIS
MORNING I BELIEVE THAT THAT --
THAT.
ARTICLE ONE H. H. HAS NOTHING TO
DO WITH ALL OF THIS.
BK OR AT LEAST IT DOESN'T
ADDRESS THE FINANCING --
ALLOCATION I THINK THE PHRASE
WAS AS WELL OF WATER FAVES.
THE PAPER TRAIL.
THAT IS PROVIDED IN THE PUBLIC
COMMENTS STILL ON A DRESS
DIRECTLY DISPROVES THAT --
THE COMMENTS OF OF THE PLANNING
AND CONSERVATION LEAGUE AND UP.
BUNCH OF OTHER ENVIRONMENTAL
GROUPS SAY ON ON THE DRAFT AGAIN
GO WAY BEYOND THE GARDEN MORE
WITH THE GARDEN VARIETY THEY
ACTUALLY READ IF YOU LOOK AT THE
ATTACHED DOCUMENTS FROM SOME OF
THE WORLD'S LEADING FINANCIAL
FINANCIAL INSTITUTIONS.
THEY'RE ALMOST LIKE A MIGHT A
SMALLER OR WELL.
WATER RETOOLING OF THE BIG SHORT
BOMB THEY'RE TALKING ABOUT
CONCERNS.
THAT THE SO CALLED EXTENSION
AMENDMENTS ACTUALLY BUNDLED IN
MAJOR NEWS SIGNIFICANT RISKS AND
COSTS UNDER THE MISLEADING
RUBRIC OF AN EXTENSION.
BOMB SO ONE OF THE EXHIBITS THAT
I REFERRED TO IN MY LETTER WAS
AN ANALYSIS BY STAPLE THAT HAD
THIS QUOTE.
PWRS LEGAL COUNSEL HAS CONCLUDED
THAT BBC P. THE PREDECESSOR TO
THE CURRENT WATER FIX PROJECT IS
NOT ON THE LIST OF APPROVED
PROJECTS THAT ARE ELIGIBLE FOR
FUNDING INCLUDING THROUGH BOND
FINANCING.
IF THESE PUBLIC COMMENTS HAD
BEEN TAKEN SERIOUSLY THEY WOULD
HAVE SHOWED THAT THE DEPARTMENT
WAS ACTUALLY QUITE CONCERNED
ABOUT THE DEFINITION OF
FACILITIES AND KNEW.
THAT IN ADDITION TO EXTENDING
THE CONTRACT LENGTH --
DEFINITION OF FACILITIES WE NEED
TO BE CHANGED AND EXPANDED IN
ORDER TO CUT COVER REVENUE BONDS --
FOUR WATER CHECKS --
SO THAT --
THE IDEA THAT SOMEHOW IT HAS
DOESN'T HAVE TO DO WITH THE
POOLS OF WATER FIX IT IS IT IS
NOT THE POINT THE POINT IS THAT
THEY HAD TO CHANGE THAT
PROVISION --
IN ORDER TO DO OTHERWISE THE
OTHER SUGGESTION FOR MS MAN AT
THIS MORNING THAT YOU HEARD WAS
THAT THAT IT COULD BE A COVERED
FACILITY BECAUSE THE DEPARTMENT
ON AN ONGOING BASIS --
IT SAYS WHAT IT THINGS WATER
SYSTEM FACILITY SHOULD BE AND
DID SO WITH RESPECT TO WATER FIX.
ON THEIR ATTENDS A BAT DOCUMENTS
ASSOCIATE WITH THE WATER FIX
PROJECT BUT YOU ONLY NEED TO
LOOK AT TWO PAGES --
TO FIGURE THIS ONE OUT THERE IS
AN ORDER CALL PROJECT ORDER
NUMBER FORTY ON IT THAT WAS NOT
PART OF THE SEQUEL PROCESS OR
THE CONTRACT EXTENSION PROCESS.
BUT WAS RELIED ON IN THE
DEPARTMENT'S REVENUE BONDS. FOR
WATER FIX AND THIS.
UNACCOUNTABLE ON REVIEW DOCUMENT
IN A COUPLE OF PARAGRAPHS
ATTEMPTED TO SUMMARILY REDEFINED
ONE OF THE MOST CONTROVERSIAL
ISSUES.
IN THE HISTORY OF THE STATE
WATER PROJECT WHETHER SOME KIND
OF CONVEYANCE FACILITY --
AROUND THE DELTA.
WOULD BE INCLUDED --
FOR PROJECT. FOR PROJECT REVENUE
BONDS -- VW
ARE NOTIFIED THE STATE WATER
PROJECT CONTRACTORS OF IT --
ON SEPTEMBER TWENTY FIRST TWENTY
SEVENTEEN AND THEY NOTE SOME
INTERESTING THINGS --
FIRST THAT THIS PROJECT ORDER.
WAS.
ISSUED THE SAME DAY BUT AFTER
THE DEPARTMENT HEAD EXECUTED.
THE OF ITS HIS ACTIONS.
ON THE E. I. R. CERTIFICATION
AND IT ALSO INDICATES THIS
PROJECT ORDER ADDS THE
FACILITIES KNOWN AS CALIFORNIA
WATER FIXES UNITS OF THE STATE.
PROJECT SO.
THE DEPARTMENT DIDN'T RELY ON
THIS PHANTOM AUTHORITY THAT IT
SAYS IT MAY HAVE UNDER OTHER
KUNDER OTHER CONTRACT PROVISIONS
THE GAME HERE.
IS THAT DATE JUMP THE GUN AND
TRY TO IMPOSE BINDING
OBLIGATIONS.
THAT THE STATE WATER CONTRACTORS
TAXPAYERS AND RATEPAYERS WILL
HAVE TO PAY ON A POTENTIAL BLANK
CHECK FOR WATER FIXED COSTS
WITHOUT BEING CANDID ABOUT WHAT
THEY WERE ACTUALLY DOING.
IT IS IN COMMON ON THIS.
COMMITTEE TO MAKE SURE THAT
OVERSIGHT.
IS AS VIGOROUS IN NEED AS IT
NEEDS TO BE IN THIS SITUATION --
THE NEXT POINT THAT IS RELATED
TO THIS ONE I WANT TO RAISE
BEFORE YOU MOVE ON SIR IF I
COULD JUST SAY WE ARE IN RECEIPT
OF YOUR LETTER I THINK ALL THE
PANELS WERE GIVEN ITS TIME
ALLOTMENT AND YOU'VE EXCEEDED
YOURSELF I COULD ASK YOU.
TO WRAP UP I CAN BE VERY BRIEF
FOR THE REST I APPRECIATE THAT
HOLIDAYS FOR THAT THAT'S OKAY
AND TO COVER WHAT A BUNCH OF
SPEAKERS UPSET AND I APPRECIATE
THE OPPORTUNITY --
THE COMPRESSION ARGUMENT IS
FRANKLY A RED HERRING.
IF YOU LOOK AT THE A CONTRACT
THE CHART THAT THE OF THE STATE
WATER CONTRACT.
CONTRACTORS ASSOCIATION THE
METROPOLITAN REFERRED.
TO IT DOESN'T ACTUALLY SAY THAT
V. CONTRACT EXTENSION AMENDMENTS
WITH WATER PHIPPS AND OTHER
RISKY PROJECTS BUNDLED AND IS
WHAT'S NECESSARY TO TAKE CARE OF
THE COMPRESSION PROBLEM.
IT JUST SAYS YOU NEED TO EXTEND
THE CONTRACTS --
ALONG THE SAME LINES THE
SOUTHERN CALIFORNIA WATER
COALITION LETTER --
TALK SAYS WELL BASICALLY YOU GET
LOWER PAYMENTS TO IF YOU WERE TO
SAY GO FROM A FIFTEEN YEAR
MORTGAGE TO A THIRTY YEAR
MORTGAGE.
THE ELEPHANT IN THE ROOM THOUGH
IS THE RADICAL REDEFINITION OF
FACILITIES WHAT THIS IS A LITTLE
MORE LIKE WOULD BE TO SAY WELL
YOU CAN LOWER YOUR MONTHLY
PAYMENTS.
IF YOU --
EXTEND THE THE CONTRACT LENGTH
BUT WE'RE JUST GOING TO ASSUME
THAT IT'S A DONE DEAL THAT ALONG
WITH THIS YOU WILL THROW IN A
REALLY REALLY COSTLY RENOVATION
OF UNDETERMINED AMOUNT THAT
MIGHT MIGHT GO INTO THE BILLIONS.
IN OTHER WORDS IT'S SOMETHING
THAT LOOKS A LITTLE MORE LIKE
THE SUBPRIME MORTGAGE ADDITIONS --
THAT PRECEDED THE FINANCIAL
CRISIS ON TAKING SOMETHING THAT
HAS BRAGGED ABOUT AS TRIPLE A
SUPPOSEDLY AND BUNDLING IN.
POTENTIALLY STAGGERING RISKS AND
COSTS THE TAXPAYERS AND REPAIRS --
WILL HAVE TO PAY.
THE CONTRACT EXTENSION PROCESS
CANNOT BE RESOLVED SO --
WITH SO LITTLE ATTENTION TO WHAT
IS REALLY AT STAKE FOR THE NEXT
FIFTY YEARS AMONG THE
UNADDRESSED ISSUES THAT NEED TO
BE CONFRONTED IN A SERIOUS WAY.
ARE.
UNSUSTAINABLE CONDITION OF THE
CURRENT DELTA AND THE NEED TO
TAKE SERIOUSLY.
THE REQUIREMENTS OF STATE LAW TO
REDUCE RELIANCE ON ON DELTA
WATER SOURCES AND ENCOURAGE
LOCAL SELF RELIANCE --
YOU HEARD TODAY ABOUT THE ALL
PAPER WATER GAP BETWEEN --
ENTITLEMENTS AND AND WHAT CAN BE
RELIABLY DELIVERED IN THE STATE
WATER PROJECT WE NEED TO FIND
OUT WHAT THE REAL CONDITIONS ARE
THAT WILL BE BENEFICIAL FOR THE
TWENTY FIRST CENTURY.
SO WHAT YOU HAVE HERE IF YOU
LOOK AT THE MANY --
GROUPS --
COUNTY NEWS AGENCIES.
THAT HAVE EXPRESSED MAJOR
CONCERNS ABOUT WHAT THE
DEPARTMENT IS TRYING TO DO THIS
IS NOT A NORTH AND SOUTH DISPUTE
THIS IS NOT A DISPUTE BETWEEN
ENVIRONMENTALISTS AND
AGRICULTURE AND EVERYBODY ELSE.
THIS IS FUNDAMENTALLY.
A DISPUTE BETWEEN THE TWENTIETH
CENTURY AND THE TWENTY FIRST
CENTURY QUITE CONTRARY TO THE
IMAGE OF RESILIENCE AND
PREPAREDNESS FOR THE FUTURE
CONDITIONS.
THE ON THINKING ADDITION OF RISK
AND COST TO THE STATE WATER
PROJECT THE T. W. R. NOW
PROPOSES --
WILL PROMOTE OUTMODED.
TWENTY TWENTIETH CENTURY
APPROACHES.
FOCUSING ON UNSUSTAINABLE
SOURCES OF SUPPLY RATHER THAN
FOCUSING ON LOCAL SELF RELIANCE
CONSERVATION AND RESILIENCE.
THE REALITY IS THAT WE CANNOT
PAY FOR BOTH WHICH MEANS BEFORE
ANY OF THESE CONTRACTAMENDMENTS
ARE EXTENDED --
WE MUST HAVE ENOUGH INFORMATION
TO THE PUBLIC.
THAT WE CAN MAKE A REAL CHOICE.
ORVILLE SHOWS --
BY AS THE MONORAIL AMENDMENTS
EXPERIAN SHOWS WERE REPORT THE
DEPARTMENT TOOK THE ADVICE OF A
LOCAL CONTRACTOR AFFILIATE.
WHO SAID THAT --
THE CONTRACT AMENDMENTS WOULD BE
BENEFICIAL BECAUSE THEY WOULD
AVOID LITIGATION THAT WAS TWENTY
FIVE YEARS OF LITIGATION AGO.
SOMETIMES GW ARE WHICH CAN ACT
ADMIRABLY INTERNS DONE GREAT
THINGS CAN BE ITS OWN WORST
ENEMY AND THE ROLE OF THE
LEGISLATURE NEEDS TO BE TO HAVE
ENOUGH OVERSIGHT.
THAT IT BRINGS OUT ITS BEST IN
IS NOT IT'S WHAT WE'RE STANDING.
THANK YOU VERY MUCH [inaudible]
YOU.
OF MISTER MOORE I DID NOTICE YOU
SHAKING YOUR HEAD --
KNOW WHEN SEARCHING ELSON ASKED
THE QUESTION OF THE PREVIOUS
PANEL --
ASKED WHETHER THERE POINTS
REPRESENT THE PERSPECTIVE OF ALL
TWENTY NINE CONTRACTORS DO YOU
WANT TO ELABORATE ON THAT AT ALL
YES BRIEF BRIEFLY PLEASE.
SAY SORRY ABOUT THAT --
INTO IS THAT THERE IS NO
CONSENSUS IN FACT THERE IS A
DIFFERENCE OF OPINION ON WHETHER
THE DEPARTMENTS VERSION OF THE
CONTRACT EXTENSION WHICH BUNDLES
IN THE PART THAT WOULD
FACILITATE WATER FIX.
IT ALSO MAKES IT EASIER --
FOR THE LARGEST CONTRACTORS IF
THEY HAD COVERED BY 80% OF THE
THE ALLEGATIONS. TO IMPOSE NEW
PROJECTS.
THOSE HAVE NOT BEEN AGREED TO BY
ALL THE CONTRACTORS THE VERY
SEPARATE QUESTION THOUGH IS
WHETHER SOME KIND OF EXTENSION
WHEN NEGOTIATIONS ARE COMPLETE
WHEN THE PUBLIC HAS MORE
INFORMATION WOULD BE ACCEPTABLE
TO ALL --
THERE WERE EIGHT AS WAS REFERRED
TO A COUPLE OF TIMES THIS
MORNING THEY'RE ACTUALLY
MECHANISMS IN THE EXISTING
CONTRACT --
PARTICULARLY ARTICLE FOR THE THE
SO CALLED EVERGREEN CLAUSE FOR
VISION WHICH WERE REALLY
DESIGNED TO ENSURE THAT THERE IS
AN ABILITY TO EXTEND THE LENGTH
OF THE CONTRACT WITHOUT
RAILROADING CONTRACTORS WHO
DON'T WANT.
TO INTO TAKING ON BIG RESTRAIN
COSTS THAT THAT THEY WANT TO
AVOID.
THANK YOU ANY QUESTIONS OF
MISTER MOORE.
THANK YOU VERY MUCH I APPRECIATE
YOUR PERSPECTIVE IN THE WRITTEN
DOCUMENTATION YOU SHARE
.
MUCH TO OUR PANELS ON AT THIS
TIME --
WE'RE GONNA OPEN UP FOR PUBLIC
COMMENT WHAT I'M GOING TO DO IS
INVITE CONGRESS MEN MCNERNEY.
AND SUPERVISOR NATOLI --
TO COME SHARE THEIR PERSPECTIVES
WITH US FIRST.
THANK YOU VERY MUCH FOR BEING
HERE.
AND YOU CAN FEEL FREE TO HAVE A
SEAT AT THE TABLE IF YOU SO
CHOOSE WILL ALLOW --
ADDITIONAL MEMBERS OF THE PUBLIC.
WHO WOULD LIKE TO PROVIDE PUBLIC
COMMENT?
WHATEVER YOU'RE MORE COMFORTABLE
SIR EITHER THERE OR AT THE TABLE.
WE'RE WE'RE GOING TO ASK THAT
ADDITIONAL MEMBERS OF THE PUBLIC
WHO CHOOSE TO PROVIDE PUBLIC
COMMENT. TO LINE UP AT THE
MICROPHONE BACK THERE AND ONCE I
SEE HOW MANY QUEUE UP WE'LL TALK
ABOUT HOW MUCH TIME --
WILL BE ALLOWED THE PUBLIC THANK
YOU VERY MUCH FOR YOUR PATIENCE
AND PARTICIPATE IN TODAY'S
HEARING --
AND WELCOME.
THANK YOU I WANNA THANK YOU FOR
ALLOWING ME TIME TO SPEAK HERE.
COURSE --
I'M JERRY MCNERNEY I REPRESENT
CALIFORNIA'S NINTH CONGRESSIONAL
DISTRICT.
BY DISTRICT INCLUDES ONE OF
CALIFORNIA'S MOST YOUR RESOURCES
CALIFORNIA DELTA.
THE DELTA SUPPORTS THE FARMERS
AND BUSINESSES OF OUR COMMUNITY
AND BRINGS TENS OF THOUSANDS OF
VISITORS TO OUR REGION EVERY
YEAR.
BUT IT'S MORETHAN JUST A WATER
SOURCE THE DELTA IS THE CULTURAL
AND ECONOMIC LIFEBLOOD OF OUR
COMMUNITY.
AND I'M HERE TODAY BECAUSE THAT
ALL SEEMS TO BE THREATENED.
THE CONSTRUCTION AND OPERATIONS
OF THE WATER FIX TUNNELS WILL
GRAVELY DAMAGED THE DELTA
ECOSYSTEM AND HURT THE FARMERS
AND BUSINESSES THAT RELY ON IT.
BY SIMPLY HOLDING THIS HEARING
THE COMMITTEE IS PUSHING THIS.
WATER FIX PROJECT ONE STEP
CLOSER TO COMPLETION.
I LITTLE LETTER ALONG WITH THREE
OF MY COLLEAGUES.
VIRGIN THIS COMMITTEE TO CANCEL
TODAY'S HEARINGS.
YOUR COLLEAGUES FROM THE DELTA.
HAVE ALSO ASKS YOU TO POSTPONE
THIS HEARING CALIFORNIA'S FROM
ACROSS THE STATE HAVE EXPRESSED
THEIR OPPOSITION.
AND I'M HERE NOT ONLY AS A VOICE.
OF FOR MY CONSTITUENTS BUT THE
VOICE FOR GENERATIONS TO COME
BUT THIS COMMITTEE HAS A CLEAR
OPPORTUNITY TODAY WHILE IT'S
CLEAR THAT THE HEARING WILL NOT
TRIGGER FULL FUNDING. FOR THE
WATER FISKE PROJECT IT'S ALSO A
SIGNIFICANT NEED FOR
TRANSPARENCY AND OVERSIGHT.
I WANT TO ECHO THE MEMBERS OF
THE COMMITTEE AND MEMBERS OF THE
PANELS.
WHO HAVE SPOKEN HERE TODAY AT
THE CLOSE OF THE COMMITTEE TO
COMMIT AND I WORKED WITH QUEST
THE COMMITTEE? TO COMMIT TO
HOLDING ADDITIONAL HEARINGS AND
PROVIDE MUCH NEEDED OVERSIGHT
FOR THE WATER SEWAGE WATER FIX
PROJECT BEFORE WE MOVE ANY
FURTHER.
THERE'S MUCH MORE INFORMATION IS
NEEDED TO KNOW THE TRUE COST.
THE LEGALITY AND THE
ENVIRONMENTAL IMPACTS OF THIS
PROJECT.
FELLOW YOU'LL BACK.
THANK YOU VERY MUCH FOR I YOUR
TENDED STAY WE APPRECIATE YOU
COMING.
MISSISSIPPI VISOR.
THANK YOU AND WE ARE IN A
POSITION OF YOUR LETTER
REPRESENTING THE DELTA COUNTIES
COALITION.
THANK YOU FOR COMING JR MITCHELL
MEMBERS OF COMMITTEE THANK YOU
SO MUCH FOR ALLOWING ME THE
OPPORTUNITY. TO APPEAR BEFORE
YOU TODAY I KNOW THERE'S BEEN A
ATTENTION AND PATIENCE.
I AM DONNA TOLD HIM A MEMBER OF
THE SECOND OKAY BORDER
SUPERVISORS IN CURRENTLY SERVICE
THE CHAIR PERSON TO TELL THE
COUNTIES COALITION WHICH
REPRESENTS THE COUNTIES OF
SACRAMENTO SOLANO SOMEONE KEEN
KUTTER COSTA IN YOU'LL COUNTIES.
AND AS YOU NOTED DENTURE
MITCHELL YOU DO HAVE A COPY OF
THE LETTER SO I WON'T BE WERE
DONE IN THAT REGARD.
I DO WANT TO NOTE THOUGH THAT --
THINK AFTER TODAY'S TESTIMONY
THERE'S NO QUESTION OF THESE
AMENDMENTS ARE DESIGNED TO
FACILITATE THE FUTURE FINANCING
CONSTRUCTION OF MANY PROJECTS
WHICH INCLUDE CALIFORNIA WATER
FIX THE TWIN TUNNELS.
WE BELIEVE THAT BEFORE THESE
CONTRACTS ARE EXTENDED FOR
ANOTHER FIFTY YEARS APPRECIATED --
SENATOR PAT PINTED OUT THAT YOU
QUIT QUIT TO SIXTY SEVEN YEARS --
AND SO SOMEONE MORE TODAY WOULD
BE CELEBRATING HER SIXTY SEVENTH
BIRTHDAY.
ABOUT TIME THESE NEXT WOULD
EXPIRE.
BUT WITH THAT WE BELIEVE THAT
SUBSEQUENTLY FINANCING FOR
BILLIONS OF DOLLARS TO CONSTRUCT
THE TUNNELS IS GIVEN THE GREEN
LIGHT BEFORE THAT.
THIS BODY AND ALL CALIFORNIANS
SHOULD HAVE A CLEAR
UNDERSTANDING OF JUST WHAT THESE
OTHER PENDING AMENDMENTS.
WILL REALLY PROVIDE.
FOR ADULT CARIES COALITION
RESPECTFULLY REQUEST THAT THE
LEGISLATURE IN THIS COMMITTEE
REQUIRE THE DEPARTMENT WATER
RESOURCES PRESENT TO THIS
COMMITTEE AND THE PUBLIC THE
ENTIRETY OF THE PENDING STATE
WATER CONTRACT AMENDMENTS
RELATED NOT ONLY PROPOSED
EXTENSIONS.
BUT TO THE CALIFORNIA WATER
FIXED.
AND THEN YOU ALSO REQUIRE AN ASK
OF THE PART OF WATER RESOURCES
TO PRODUCE A VIABLE TRANSPARENT
A COMPLETE FINANCING PLAN ALONG
WITH THE TRUE COST BENEFIT
ANALYSIS.
ACCORD WITH IT GORDON'S WITH ITS
OWN GUIDELINES FOR THE
CALIFORNIA WATER FIX.
IT IS CLEAR FROM TESTIMONY TODAY
THAT WITHOUT THESE COURT
DOCUMENTS FINANCING FOR THE
CALIFORNIA WATER FIX IS IN
SERIOUS DOUBT I THINK THE
QUESTIONS FROM THE DYESS.
POINTED OUT VERY CLEARLY.
SO THIS INFORMATIONAL HEARING WE
BELIEVE CERTAINLY HAS GIVEN THIS
LEGISLATURE IN THIS COMMITTEE
THE OPPORTUNITY TO MAKE ITS
VOICE HEARD ON AN ISSUE WHICH WE
HAVE A LONG LASTING.
AND NEGATIVE EFFECT ON THE DELTA
REGION.
DELTA COMMUNITIES WILL
EXPERIENCE PERMANENT
ENVIRONMENTAL DAMAGE INDOOR THE
LOSS OF AGRICULTURAL LAND AND
BUSINESSES.
AND THE DESTRUCTION A WAY OF
LIFE THE TWIN TUNNELS CALIFORNIA
WATER FISH PROJECT PROCEEDS.
PLEASE PLEASE ON BEHALF OF ALL
OF A FULL AND TRANSPARENT
EXAMINATION OF ALL THE LONG TERM
WATER CONTRACT AMENDMENT SO THAT
THE DIGITAL HEARING AIDS.
AND A REVIEW AND OVERSIGHT BY
THIS COMMITTEE AND THE
LEGISLATURE CAN BE CONDUCTED BY
THE LEGISLATURE GOING FORWARD
AND THEN THROUGH THE NEW NEW
NEXT ADMINISTRATION IN TWO
THOUSAND NINETEEN THANKS SO MUCH
FOR TENSION FOR YOUR ATTENTION
TODAY THANK YOU VERY MUCH FOR
COMING.
AS OUR HONOR TO HAVE YOU --
AND THE CONGRESSMAN SO LOOKING
AT THE NUMBER OF PEOPLE WHO HAVE
CUED UP I'M GOING --
TO US DALGLISH SOME GAME RULES
IF IF YOU.
DON'T MIND --
LOOK AT THE NUMBER OF PEOPLE --
WE COULD GO AT LEAST EASILY
FORTY FORTY FIVE MINUTES.
WHAT I'M GOING TO ASK IS THAT
YOU --
LISTEN TO ALL THOSE WHO ARE
GOING TO TESTIFY BEFORE YOU FEEL
FREE TO ASSOCIATE YOUR COMMENTS
WITH SOMEONE WHO'S ALREADY
TESTIFIED.
I THINK WE HAVE CLARIFIED THAT
THE POINT OF TODAY'S CONVENING.
IS TO REVIEW THE AMENDMENTS
BEFORE US THAT IS NOT A DIRECT
CORRELATION WITH WATER FIX.
SO I'M REALLY GOING TO IMPLORE
YOU THAT IF YOU HAVE COMMENTS
RELATIVE TO THE AMENDMENTS THAT
YOU SHARE THOSE FIRST I'M NOT
GOING TO STOP YOU FROM SAYING.
HERE IN YOUR OPINION ABOUT WHAT
A FIX ON CLEAR THAT'S WHY MOST
OF YOU TRAVEL HERE TODAY --
I THINK MISTER MOORE DID AN
EXCELLENT JOB AREAS OF THE
ACTUAL AMENDMENTS BEFORE US
TODAY.
THAT HE HAD ISSUE WITH SO I'M
GOING TO ASK THAT YOU USE THE
BULK OF YOUR TIME THERE.
I'M GOING TO WATCH THE CLOCK AND
GIVE EVERYONE A MINUTE. TO SHARE
YOUR TESTIMONY WITH THAT WE'LL
HAVE OUR FIRST WITNESS AND
PLEASE STATE YOUR NAME FOR THE
RECORD NOPE RIGHT THERE AT THE
MIKE SIR.
THANK YOU FEEL FREE TO MOVE THE
MIKE UP CLOSER.
MY NAME IS WILLIAM DIALING ME --
RETIRED PROFESSOR OF ACCOUNTING
AT SAN JOSE STATE UNIVERSITY AND
A CERTIFIED PUBLIC ACCOUNTANT.
AND I'VE CERTAINLY LEARNED QUITE
A BIT HERE TODAY --
I HAD LEARNED THE U. T. W. R.
LIKE STOP RATE ON DELIBERATE
SPEED.
BUT YET THEY HAVE FIFTY YEAR OLD
FACILITIES THAT THEY HAVEN'T --
REFURB TO REPLACED.
I WAS IN AUSTIN THE NAVY IN THE
NINETEEN SEVENTIES WITH A
PREVENTIVE MAINTENANCE SYSTEM I
LEARNED TODAY THE D. W..
OUR RECENTLY IMPLEMENTED SUCH A
SYSTEM PROBABLY FIFTY YEARS
BEHIND THE TIMES.
HI THIS FINANCIAL COMPRESSION
IT'S BEEN DISCUSSED TODAY.
A SEVENTEEN YEAR BOND VERSUS THE
THIRTY YEAR BOND.
IF YOU TAKE A LOOK ON PAGE THREE
OF WHAT YOU PASSED OUT TO US.
IT SAYS HERE THE DEPARTMENT
INDICATES BONDS WITH LONGER
TERMS AND THEREFORE LOWER
REPAYMENT BECAUSE MAY BE USED
FOR CAPITAL.
INDICATES LATER IN HERE THAT
THAT'S A CHEAPER WAY TO GO LEAVE
THIS YOU GET A FIFTEEN YEAR BOND
VERSES A THIRTY YEAR BOND HE
PACKABLE UNLESS OF COST.
LET ME MAKE SURE I GET THIS IN
AND IF EVERYBODY WOULD TAKE A
LOOK.
ON PAGE FOR THE VERY LAST
SENTENCE ON PAGE FOUR SAYS THIS.
AND I QUOTE.
PWR CAN EXPAND US W. P. FEES
WITHOUT LEGISLATIVE APPROVAL.
IF THAT IS TRUE EVERYTHING IS
SAID TO YOU TODAY MEANS NOTHING.
IN CENTER PANEL TO BE TOLD ABOUT
THAT BECAUSE THE LAW IS GOING TO
INDICATE WHAT'S DONE HERE AND
WHAT'S ALLOWED.
NOT WITH SOMEBODY PROMISED YOU
TO DO.
YOUR CRAZY IF YOU GIVE UP WHAT I
UNDERSTAND IS YOUR ONLY CONTROL
OVER THESE WATER PEOPLE.
IF YOU GIVE UP AND LET THEM DO
THIRTY YEAR BONDS DID YOU HEAR
THAT ONE DO FORTY YEAR BONDS.
WHY NOT FIFTY YOUR BOSS ONE
ABOUT FIFTEEN SECONDS WHY DON'T
WHY NOT ONLY INTEREST ONLY BOND
SO THE CALIFORNIA TAXPAYERS CAN
MAKE PAYMENTS IN PERPETUITY?
IS THERE A LIMIT TO WHAT PEOPLE
CAN TAKE.
I TOLD YOU I'M A CPA OKAY.
AND THE MOST COMMON THING THAT.
MY MY CLIENTS TELL ME COME TO ME
AND ASK QUESTIONS ABOUT.
HOW CAN I LEAVE THIS STATE COME
VISIT BUT STOPPED PAYING ALL
THESE TAXES AT THE STATE OF
CALIFORNIA?
CHARGES WHEN THE NEXT RECESSION
HITS WE KNOW LITTLE HEAD.
WHEN 1% OF THE TAXPAYERS AREN'T
PAYING 50% OF THE STATE INCOME
TAX YOU ARE GOING TO HAVE ONE
HECK OF A MESS ON YOUR HANDS?
YOU NEED TO DO SOMETHING FOR THE
VOTERS OF CALIFORNIA IS CONSIDER
THEM.
DON'T LET A PROJECT LIKE THIS GO
WHERE THE COSTS ARE GONNA BE
UNBELIEVABLE.
DID YOU FORGET ABOUT ALL THE
PEOPLE IN THE PICTURES LEAVE IN
A WAR BILL BECAUSE HE THOUGHT
THE DAM WAS GOING TO FALL. ONE
POINT ONE BILLION DOLLARS
QUARTER IN FIFTY FIVE BILLION
DOLLARS.
ASK ABOUT OUR STATE BILLION
DOLLARS THAT SUPPOSE IT WILL
COST SEVENTY SEVEN BILLION TO
COMPLETE.
GIVE THE TAXPAYERS A BREAK.
STOP THIS WATER FIX DO IT THE
RIGHT WAY MAKE SURE ALL THE
EMBEDDABLE THINGS ARE TAKEN CARE
OF MAKE SURE YOU KNOW WHAT THE
PHYSICAL COSTS ARE GOING TO BE.
DEALT STICK THE CALIFORNIA
TAXPAYERS WITH UNBELIEVABLE BERG.
OKAY BEFORE NEXT THANK YOU VERY
MUCH SIR.
THAT WAS THREE MINUTES TO ALL
THOSE STANDING BEHIND ME IN LINE.
WE ACTUALLY DID.
THAT MAKES TWO OF US MAN WE'VE
ALL BEEN SITTING HERE TOO SO LET
ME JUST TRY TO RESPECT AND HONOR
ALL THOSE WHO'VE CUED UP BECAUSE
WE'VEGOT TO RESPECT AND HONOR
EACH OTHER.
AND YOU SEE --
I'M GONNA SIT HERE TO THE VERY
END I'M GONNA ASK AND WE DO THIS --
IN BUDGET HEARINGS ALL THE TIME
SO TRUST ME IN BEFORE I WAS
ELECTED OFFICER.
BEFORE I RAN FOR OFFICE I WAS A
MEMBER THE PUBLIC BECAME A
TESTIFIED IT CAN BE DONE IN ONE
MINUTE YOU CAN'T GET TO YOUR
ROOT PROBLEM.
I APPRECIATE ITS EMOTIONAL AND
PEOPLE HAVE COME FOR PAST
HEARINGS BUT I AM GOING TO ASK.
THAT YOU RESPECT THE OTHER
MEMBERS OF THE PUBLIC WERE
BEHIND YOU.
AND KEEP YOUR COMMENTS TO ONE
MINUTE.
AND PREVENT ME FROM HAVING TO
CUT THE MIKES.
I'M GOING TO ASK YOU TO RESPECT
EACH OTHER EVEN IF YOU DON'T
CHOOSE TO RESPECT NEAR THE
PROCESS.
NEXT WITNESS.
YES THANK YOU MY NAME IS CLIFF
SANDER AND I'M A RESIDENT OF SAN
RAMON CALIFORNIA --
ONE THING I GOT OUT OF THIS
HEARING TODAY WAS WITH REGARDS
TO OVERSIGHT --
IT SEEMS TO ME IF I UNDERSTAND
CORRECTLY THE OVERSIGHT IS
FAIRLY LIMITED RIGHT NOW FOR THE
LEGISLATURE.
SO MY EMPHASIS WOULD BE THAT YOU
FOLKS TAKE THAT WITH YOU AND
CONSIDR.
STRENGTHENING THAT UP AND MAKING
THINGS MANDATORY STRICT AND
PERIODIC.
BECAUSE WHEN THINGS ARE HANDLED
IN KIND OF A CURSORY OVERSIGHT
AS NEEDED THEY BRING SOMETHING
TO YOU AT CETERA.
THOSE THINGS CHANGE WITH THE
TIMES AND WITH NO DISRESPECT TO
THIS COMMITTEE SOME COMMITTEES
MIGHT DECIDE IT'S NOT IMPORTANT
IT GETS POSTPONED IT GETS STAYED.
IT'S NEVER HEARD THE CHAIRMAN
DOESN'T LIKE IT MAYBE HE'S A
PROPONENT OF WHAT THEY WANT TO
DO.
HERE SHE EXCUSE ME.
THAT'S THOUGH JUST BE BY
EMPHASIS THE OVERSIGHT THAT.
CAN BE MADE STATUTORY MANDATORY
IT NEEDS TO BE STRONG.
THE CW ARE ONLY NEEDS.
ANOTHER DISCRETION TO OPERATE
AND FUNCTION AND I DON'T WANT TO
HAVE HAND CUFFS BUT THEY
SHOULDN'T HAVE FREE REIGN EITHER.
THANK YOU I APPRECIATE THAT VERY
MUCH.
NEXT WITNESS ONE MINUTE PLEASE
I'M GAIL DEL HAND WITH WESTERN
GROWERS ASSOCIATION OUR MEMBERS
ARE STATEWIDE AGRICULTURAL
ORGANIZATION THAT GROWS FRESH
PRODUCE -- I
WANNA THANK YOU TODAY FOR HOLD
HEARING --
FINANCIAL STABILITY --
IN THE STATE WATER PROJECT IS
CRITICAL TO THE COST OF WATER TO
FARMERS THANK YOU.
YEAH THIS ONE MINUTE.
GOOD GOOD AFTERNOON CHAIRMAN
CHILL AND COMMITTEE MEMBERS
BARBERA GET PEREA WITH RESTORE
THE DELTA.
THANK YOU FOR THE WAY YOU
CONDUCTED THE HEARING TODAY
WE'RE GRATEFUL.
WE'RE STILL TROUBLED BY THE
FIFTY YEAR CONTRACT TALKS ON FOR
THE STATE WATER PROJECT.
AND I WILL EXPAND ON WHAT MISTER
MOORE SAID.
THE WATER FIX.
HAS FORMED A GPA.
KNOWN AS THE DESIGN CONSTRUCTION
FINANCE AUTHORITY.
THEY ARE ADVANCING A WITH FIELD
LOAN PROCESS WITHOUT LEGISLATIVE
OVERSIGHT WITHOUT A FINANCIAL
PLAN.
A COST BENEFIT ANALYSIS OR AN
AFFORDABILITY ANALYSIS FOR
REPAIRS.
WITHOUT PERMITS FROM THE WATER
BOARD.
AND WITHOUT A RECORD OF DECISION
FROM THE FEDERAL WITH THE LOANS
ARE ASSOCIATED WITH PUBLIC
PRIVATE PARTNERSHIPS.
THIS FIFTY YEAR CONTRACT CHECKS
OFF A BOX FOR THE WITH FEEL LOAN
PROCESS.
THE FINANCE GPA IS ALSO WORKING
ON AN ANALYSIS OF PRIVATE
INVESTMENT FOR WATER FIX.
WILL OUR STATE WATER SUPPLY BE
OPERATED ON OUR PRIVATE
INVESTMENT.
IS PART OF THE DEBT LOAD.
HOW DOES THAT SQUARE UP WITH THE
PUBLIC TRUST?
WITH D. W. R. BONDING
[inaudible]
STABILITY.
HOW DOES THAT SQUARE WITH THE
CONSTITUTION AND WATER BEING
PART OF THE PUBLIC TRUST?
THESE ARE VERY BIG QUESTIONS.
WE HOPE THAT YOU DELVE MUCH
FURTHER INTO THIS BUT THERE HAS
TO BE ALSO FIND US.
A LOOK AT HOW THIS DEAL CFA IS
OPERATING WITHIN THE PARAMETER
OF THE STATE WATER CONTRACT AND
WHAT IS THAT CONNECTION WITH D.
W. R..
THANK YOU.
YOU NEXT WHEN IT.
X. WITNESS ONE MINUTE.
GOOD AFTERNOON KYLE JONES
HYSTERICAL CALIFORNIA I JUST
WANTED TO ECHO THE POINTS MADE
BY MISTER MOORE --
MISS PREFER RESTORE THE DELTA
REGARDING CONCERNS ABOUT WATER
JUST KIND OF TAKE THE TIME TO
NOTE THAT THERE IS A LACK OF
TRUST BETWEEN A LOT OF THE
PUBLIC AND HOW D. W. OR THE
STATE WATER CONTRACTORS BEEN
OPERATING.
FOCUSING ALMOST ALL THEIR
EFFORTS TOWARDS GETTING THIS
TUNNEL PROJECT MOVING AT THE
EXPENSE OF OTHER PROJECTS AND WE
THINK THAT THERE DOES NEED TO BE
STATUTORY CHANGES TO INCREASE
OVERSIGHT.
THROUGH THE BUDGET PROCESS AND
ALSO MAKE SURE THAT --
ELEVATED AND THAT INCLUDES
MAINTENANCE OF EXISTING PROJECTS
TO ENSURE THAT THERE'S PUBLIC
SAFETY --
AND ALSO TO THAT CAN INCREASE
WATER SUPPLY AND AND MORE
INVESTMENTS IN UPPER WATERSHEDS
TO ENSURE THAT THAT THAT THINGS
ARE OPERATING LIKE THEY SHOULD
SO IMPLORE THAT THE BIGGEST
LESSON WE TAKE FROM THIS.
IS THAT THERE DOES NEED TO BE A
GREATER ROLE OF THE LEGISLATURE
IN THIS PROCESS AND MORE IN A OF
A BARRIER BETWEEN TWO TO BE ON
THE STATE WATER PROJECT
CONTRACTORS THANK YOU THANK YOU.
GOOD AFTERNOON MY NAME IS OCEAN
RESERVE I REPRESENT A LOCAL
AGENCIES OF THE NORTH DELTA
WHICH IS A ALLIANCE OF WATER AND
WATER LEVY DISTRICTS AND WATER
DISTRICTS AN ADULT AS WELL AS
FRIENDS OF STONE LAKES NATIONAL
WILDLIFE REFUGE WHICH IS RIGHT
NEXT TO WHERE THE PROPOSED
INTAKES WOULD.
BE AND I JUST WANT TO MENTION
THAT IN ADDITION TO WHAT'S
ALREADY BEEN SAID THAT THE YOU
KNOW IT'S DEFINITELY CLEAR THAT
THESE AMENDMENTS THAT ARE THE
CONTRACT EXTENSION MANAGEMENT'S
FACILITATE FINDING THE DELTA
TUNNELS.
AND WE STILL DON'T KNOW WHAT THE
FULL COST OF THE DELTA*
TUNNELS WOULD BE NOR THE COST OF
OF HUGE PROJECTS LIKE ORVILLE
THESE KIND OF MEGAPROJECTS DON'T
HAVE A CLEAR ESTIMATES.
AND YET THIS INDEBTEDNESS THAT
WOULD BE FACILITATED BY THOSE
EXTENSIONS --
WOULD BE PLACED ON THE PUBLIC
AND I WOULD NOTE THAT HASN'T
BEEN MENTIONED TODAY THAT THE
FEDERAL PARTICIPATION IN WATER
IN THE DELTA TUNNELS PROJECT IS
REALLY IN QUESTION RIGHT NOW
THERE IS NO FORMAL CVP
PARTICIPATION IN THE PROJECT.
AND IT MAY BE THAT IT'S THE
STATE WATER PROJECT ONLY --
FACILITY WHICH REALLY COULD DO
RATE PAYERS WITHIN CALIFORNIA --
AND IT'S REALLY IMPORTANT THAT
THE LEGISLATURE BE THE ADULT IN
THE ROOM PROVIDE THE OVERSIGHT
THAT'S NEEDED SO THAT IDW ARE
DOESN'T MOVE FORWARD ON A
RECKLESS PATH THAT WOULD DO THAT --
AND I WOULD ALSO NOTE THAT THE
STATE WATER PROJECT WAS
INITIALLY ESTIMATED TO BE ONE
POINT FIVE SEVEN ONE POINT SEVEN
FIVE BILLION AS WAS MENTONED
BUT THAT COST HAS ESCALATED UP.
TO SEVEN BILLION --
SO.
D. W. R. SHOULD IF IT'S REALLY
NOT.
NOT IF THESE OTHER AMENDMENTS
NEED TO GO THROUGH IN ORDER TO
FACILITATE OTHER THINGS THAT
THERE MIGHT LONG PLEASE.
CONSENSUS AROUND DO YOU HAVE
YOUR SHOULD ACCEPT FUNDING FOR
THE DELTA TUNNELS FROM THESE
AMENDMENTS AND I WOULD ASK THAT
THE COMMITTEE HOLD OPEN THIS
HEARING AND NOT CLOSE IT AND
THAT IT CONDUCTED THE EXTENSIVE
OVERSIGHT THAT'S BEEN DISCUSSED.
THANK YOU.
AS A MAN CHAIR MEMBERS OF THE
COMMITTEE MY NAME IS TOM
MCCARTHY I'M THE GENERAL MANAGER
FROM A HOBBY WATER AGENCY WE ARE
A STATE CONTRACTOR.
ARI VOTED TO PARTICIPATE IN THE
PROJECT THE NINETEEN FIFTIES --
WE ARE IN SUPPORT OF THE
CONTRACT EXTENSION --
THIS CONTRACT EXTENSION WAS
NEGOTIATED IN PUBLIC AND HAS
BEEN VETTED OVER THE LAST TWO OR
THREE YEARS --
WITHIN OUR AT OUR PUBLIC BOARD
MEETINGS WITH A AN ELECTED BOARD --
I WANTED TO BRING TO YOUR
ATTENTION A LETTER THAT WAS
SOUTHERN CALIFORNIA WATER
COALITION --
THAT COALITION STATES --
OR EXCUSE ME IT IT ADDRESSES.
FINANCIAL COMPRESSION WE JUST
WANTED TO SAY FROM OUR
PERSPECTIVE FINANCIAL
COMPRESSIONS REAL.
WE LIKE TO KEEP COSTS AS LOW AS
POSSIBLE FOR OUR CUSTOMERS THANK
YOU FOR YOUR TIME.
HI GOOD AFTERNOON MADAM CHAIR
MEMBERS CONFERRAL SENEGAL COUNTY
WATER AUTHORITY --
TRANSPARENCIES BEEN --
REAL STRONG THEMES EMERGE FROM
HEARING TODAY AND WHILE.
THE CITY OR COUNTY WATER
AUTHORITY BOARD OF DIRECTORS
SUPPORTS THE WATER IX PROJECT
AT THIS CURRENTLY ENVISIONED.
CONDITIONED UPON ENSURING THAT
THE ALLOCATION OF COSTS BY D. W.
R. BY THE METROPOLITAN WATER
DISTRICT --
TO ITS SUBCONTRACTORS IS DONE
CONSISTENT WITH THE
CHARACTERIZATION OF THOSE
CLASSES STORE KLAY AS WATER
SUPPLY.
TRANSPARENCY IS REALLY IMPORTANT
TO ENSURING THAT WE UNDERSTAND
WHAT THAT COST ALLOCATION LOOKS
LIKE.
FIRST A WATER PROJECTS
SUBCONTRACTOR LIKE US A KEY TO
ACTUALLY ACHIEVING THAT
TRANSPARENCY FOR US TO FOR A
SUBCONTRACTOR METROPOLITAN WATER
DISTRICT AS UNDERSTANDING THE
ALLOCATION OF THOSE COSTS.
THROUGH ACCESS TO MUCH BALTIMORE
DISTRICT FULLY ALL RIGHT MODEL
WHICH IS THE EXCEL SPREADSHEET
THAT METROPOLITAN USES THE
ALLOCATED COSTS.
RATES AND CHARGES TO ITS
CUSTOMERS --
WE CAN WORK WITH THE PRESIDENT
PRO TEM OF THE SENATE --
TO TRY -- TO
YOU SECURE --
RELEASING COMMITMENT BY MUCH
FAULT HIM FOR THAT FULLY
FUNCTIONAL RATE MODEL WE WOULD --
ENCOURAGE THE COMMITTEE TO TO
HELP OUT AND NOT IN ANY WAY YOU
POSSIBLY CAN THANK YOU
APPRECIATE THAT NEXT WITNESS ONE
MINUTE.
THANK YOU GERMAN CHILL --
MY NAME'S DOUG HEDRICK I
REPRESENT THE SALMON GINO VALLEY
MINUTES WATER DISTRICT WERE ALSO
STAY CONTRACTOR IN SUPPORT OF
THIS CONTRACT EXTENSION.
I WAS ABLE TO PARTICIPATE IN
MOST O THE PUBLIC MEETINGS THAT
WENT ON STARTING IN TWO THOUSAND
THIRTEEN I DID WANT TO ANSWER A
QUESTION FROM CENTER MINING IF I
COULD ABOUT A SPECIFIC EXAMPLE
ABOUT.
HOW HOW COSTS CAN INCREASE DUE
TO COMPRESSION WE RECENTLY
COMPLETED --
A PROJECT A DELIVERY ARE BUILT
FOR US --
EXTENDING THE STATE WATER
PROJECT TO OUR SERVICER WAS
ROUGHLY TWO HUNDRED MILLION
DOLLARS THE LAST SERIES OF BONDS
THAT WAS FLOATED IN TWO THOUSAND
SIXTEEN THE DIFFERENCE BETWEEN
THOSE BONDS BEING FLOATED FOR
THIRTY YEARS.
AND BEING FLOATED --
FOR EIGHTEEN OR NINETEEN WHICH
THEY WERE A LOT I PERCENT
DIFFERENCE IN COST.
SO AGAIN I JUST WANTED REVIVE
ONE EXAMPLE ABOUT HOW
COMPRESSION IS REALLY IMPACTING
RATES THANK YOU THANK YOU FOR
THAT [inaudible]
NEXT WITNESS.
A GOOD AFTERNOON MY NAME IS
TRAVEL TIME TIME WITH NATURAL
RESOURCES DEFENSE COUNCIL
[inaudible]
AND I WANT TO ECHO THE COMMENTS
AND THE TESTIMONY PROVIDED BY
MISTER MOORE --
SIERRA CLUB RESTORE THE DELTA --
MISMAS SERVE.
AND ALSO --
THE THEME OF THE LAST COMMENTS
FROM THE SAN DIEGO COUNTY WATER
AUTHORITY AROUND TRANSPARENCY ON
THE COSTS.
ASSOCIATED AND IF --
WHAT IT'S GOING TO TAKE IN ORDER --
TO IMPLEMENT THE WATER FIX
PROJECT OVER TIME --
AS OTHERS HAVE SAID I THINK THAT
IT WOULD BE INCUMBENT UPON THIS
COMMITTEE.
TO CONTINUE THIS HEARING TO
ALLOW FOR THE INFORMATION THAT'S
BEEN REQUESTED BY MEMBERS OF THE
COMMITTEE TO BE BROUGHT FORTH
FROM BY W. D. ARE IN ORDER TO
HAVE A FULL CONVERSATION WE'VE
HAD A CONVERSATION AND APPS FOR
AWHILE BUT THERE'S MORE TO BE.
KNOWN AND THERE'S MORE THAT
SHOULD BE KNOWN INCLUDING
SPECIFICALLY.
AS MISTER MOORE COMMENTED --
RESPONSES.
TO COMMENTS ON THE DRAFT
ENVIRONMENTAL IMPACT REPORT
RELATED TO THESE CONTRACT
AMENDMENTS.
AND LET'S LET'S BE CLEAR AND
MAKE MONEY NO MISTAKE THAT THESE
CONTRACT AMENDMENTS THIS
EXTENSION AND SPECIFICALLY THE
CHANGES TO THE DEFINITIONS OF
WATER SYSTEM FACILITIES.
WILL FACILITATE BOND FUNDING.
FOR WATER FIX AND I DON'T THINK
WE GOT A COMPLETE AND ACCURATE
RESPONSE --
FROM.
CARLY NAME IS ON THAT POINT AND
I THINK WE SHOULD CONTINUE THIS
HEARING SO WE CAN FULLY
UNDERSTAND THAT ISSUE AS WELL AS
MANY OTHERS ASSOCIATED WITH THE
PROJECT [inaudible]
THANK YOU.
PLEASE IDENTIFY YOURSELF IN ONE
MINUTE -- MY
NAME IS ROB ANDERSON I'M A
RESIDENT SACRAMENTAL YOU COULD
PULL THE MIKE DOWN WHAT'S
COMFORTABLE FOR YOU [inaudible]
OUR EUROPE.
COMING DCISION ON THE STATE
WATER CONTRACT WILL IMPACT
IMPACT TAXPAYERS.
AND OUR WATER THROUGHOUT THE
ENTIRE STATE OF CALIFORNIA URGES.
TO DELAY THE HEARING AND TELL
ALL THE INFORMATION.
REGARDING FINANCING IN THE
TUNNELS HAS BEEN PROVIDED TO THE
LEGISLATURE.
AND PUBLIC INPUT CAN BE --
TAKEN IT IS IRRESPONSIBLE THAT
LEGISLATORS ARE EXPECTED TO MAKE
AN INFORMED DECISION WITHOUT
ACCESS.
TO CONTRACT AMENDMENTS AND NO
IDEA WHAT THE COST IMPACTS WOULD
BE. FOR TAXPAYERS AND WATER
RATEPAYERS AND PLEASE PUT THE
PUBLIC TRUST THE PUBLIC GOOD.
AND THE PUBLIC INTEREST FIRST.
THANK YOU.
GOOD AFTERNOON I'M RAY STOKES
EXECUTIVE DIRECTOR OF THE
CENTRAL COAST WATER AUTHORITY WE
ARE STATE WATER --
WHOLESALER IN SANTA BARBARA
COUNTY UNLIKE MOST OF THE OTHER
STATE WATER PROJECT --
CONTRACTORS WHOSE FOR STATE
WATER PROJECT FACILITIES WERE
BUILT IN THE NINETEEN SIXTIES
OURS WERE BUILT IN THE NINETEEN
NINETIES SO NOT ONLY DO WE HAVE
HIGHER COSTS BECAUSE OF THE TIME
VALUE OF MONEY.
BUT WE'RE ALSO EXPERIENCING THE
COMPRESSION ISSUE TODAY BECAUSE
WE DIDN'T HAVE THE NORMAL FIFTY
YEAR AMORTIZATION PERIOD FOR OUR
FACILITIES.
SO WE ARE FULLY SUPPORTIVE OF
THAT WE DON'T FURTHER EXACERBATE
THE FINANCIAL COMPRESSION ISSUES
THAT WE'RE HAVING TODAY THANK
YOU THANK YOU NEXT WITNESS
PLEASE.
GOOD AFTERNOON MADAM CHAIR THANK
YOU VERY MUCH FOR HOLDING THIS
HEARING TODAY AND COMING HERE
I'M IN RECESS.
I AM I JENNIFER PIERRE I
REPRESENT TWENTY SEVEN OF THE
TWENTY NINE STATE WATER PROJECT
CONTRACTORS.
AND I WANT TO PROVIDE AN EXCERPT
FROM A MEMO FROM NAPA COUNTY IS
ALSO A MEMBER AND UNABLE TO BE
HERE THANK YOU BUT FIRST I WANT
TO JUST TO BE CLEAR THAT DURING
THE DOESN'T THE PUBLIC MEETINGS
THAT WERE HELD.
DURING THE CONTRACT EXTENSION
NEGOTIATION WITH THE W. ARE ALL
TWENTY NINE CONTRACTORS
PARTICIPATED SO I JUST WANTED TO
MAKE THAT CLEAR --
BUT IN TERMS OF NAPA WHO
REPRESENTS ONE OF FIVE
CONTRACTORS THAT OCCUR NORTH OF
THE DELTA AND WOULD NOT BENEFIT
FROM WATER FIX.
THEY WRITE THAT --
THE DISTRICT IS AMONG THE
SMALLER CONTRACTORS OBTAINS ITS
WATER SUPPLY NORTH OF THE DELTA
AND WILL NOT BENEFIT FROM OR
PARTICIPATE IN THE CALIFORNIA
WATER FIX PROJECT.
WHICH IS THE SUBJECT OF A
COMPLETELY SEPARATE PROCESS.
GIVEN ARE SOMEWHAT UNIQUE
CIRCUMSTANCES WE WHAT THE OTHER
TWENTY EIGHT CONTRACTORS THAT
THE EXTENSION MUST BE APPROVED
IN A TIMELY MANNER SO THANK YOU
FOR HAVING THIS HEARING TODAY.
THANK YOU VERY MUCH NEXT WITNESS
PLEASE.
THANK YOU --
MY NAME IS GLEN TAKEN A RESIDENT
OF LOS ANGELES.
I SERVE ON THE METROPOLITAN
WATER DISTRICT BOARD OF
DIRECTORS I'M APPOINTED BY LA
MAYOR ERIC GARCETTI THAT POST.%
I REMAIN CONCERNED ABOUT THE
ECOLOGICAL HEALTH OF THE DELTA.
AND THERE'S A LOT THAT WE DON'T
YET KNOW ABOUT HOW THE NEED TO
BALANCE WATER SUPPLY ECOSYSTEM
RESTORATION WILL BE ACCOMPLISHED.
I SUPPORTED THE PHASED APPROACH
FOR THE CALIFORNIA WATER FIGHT
FIX IMPROVEMENT TO THE STATE
WATER PROJECTS I SUPPORTED THE
PROJECT WHEN IT WAS. TWO TUNNELS
BUT HAD PARTNERS.
MY CONCERN GOES --
TO WHETHER OR NOT LOS ANGELES
AND OTHER END OF THE WATER
AGENCIES WILL RECEIVE BENEFITS
FROM THE SIX BILLION.
OVER INVESTMENT IN THE CAPACITY
GPA SECTION OF THE TUNNELS.
AND THAT'S NOT YET KNOWN TO US I
HAVE CONFIDENCE IN THE STAFF OF
THE MET THE THE METRO ON
WARRIORS WHO WILL DO A GREAT JOB.
BUT WE DON'T YET KNOW WHETHER
NOT THAT'LL BE ACCOMPLISHED
THANK YOU [inaudible]
WITNESS PLEASE.
GOOD AFTERNOON CHAIRMAN CHILL IN
THE COMMITTEE --
MY NAME IS THE LAWN KWAN WHAT
RESOURCE MANAGER WITH THE LA
DEPARTMENT OF WATER AND POWER WE
ARE A MISSILE UTILITY.
SERVING THE CITY OF LA
POPULATION OF AS YOU MAY BE
AWARE TO ALSO WE ARE. ONE OF THE
ORIGINAL FOUNDING MEMBERS OF
METROPOLITAN.
SO IN ADDITION TO OUR
DISAGREEMENT WITH THEM TO BE DIS
OVER INVESTMENT AND THEIR
FINANCING OF THE SECOND TUNNEL
ALL BY THEMSELVES --
WE MAY ALSO IT IS --
COMING UP HAVE A DISAGREEMENT
WITH HELMET METROPOLITAN MAY
RECOVER WATER FIXED COSTS TO THE
RATES AND CHARGES.
SO AS A CITY --
MAKES ITS PROGRESS TOWARDS --
REDUCING US DEPENDENCE ON MW
SUPPLIES THROUGH INVESTMENTS IN
CONSERVATION LOCAL PROJECTS.
WE BELIEVE THAT METROPOLITAN
SHOULD RECOVER --
WATER FIXED COSTS ON A
VOLUMETRIC BASIS.
AND NOT PASSED ON TO RATE PAYERS
IN THE FORM OF A NEW --
FIXED CHARGE.
THESE FIXED CHARGES IF THEY'RE
IMPOSED --
REPAIRS THAT DO THE RIGHT THING
WILL NEVER BE ABLE TO GET AWAY
UNFAIRLY AND AND AND AND
UNFAIRLY PAY AN ADDITIONAL
BURDEN ON THE WATER FIXED COST.
SO WE BELIEVE THAT THESE FIXED
CHARGES ARE --
BAD AND THEY TO SOME DETER
INVESTMENTS BY LOCAL AGENCIES TO
INVEST IN LOCAL PROJECTS SUCH AS
RECYCLE WATER CONSERVATION.
AND STORMWATER CAPTURE PROJECTS
AS WELL AS A POTENTIALLY
IMPACTING THE CITY'S ABILITY TO
CLEAN UP --
CONTAMINATION IN SAN FERNANDO
GROUNDWATER BASIN.
SO IT IS IMPORTANT FOR OUR RATE
PAYERS -- TO
MAKE SURE THAT ONE METROPOLITAN
DOES RECOVER COSTS THAT THEY DO
IT -- IN A
WAY THAT'S NOT REGRESSIVE.
IN THAT THESE COSTS DON'T DIS
INCENTIVIZING A LOCAL AGENCIES
INVESTMENT ESPECIALLY FOR ASKING
THE RATE PAYERS --
TO DO THE RIGHT THING AND REDUCE
RELIES ON THE DELTA THANK YOU
THANK YOU NEXT WITNESS PLEASE
ONE MINUTE PLEASE.
THANK YOU CHAIR MITCHELL I'M
SORRY IF THIS IS ALL VERY
STRESSFUL TO ME --
AND THAT COMMITTEE --
MY NAME IS JACQUELYN SHAW.
PROF AUTHORING THE ROE WE'RE
BORN AND RAISED IN LODI TWENTY
MILES FROM.
THE HEART OF THE DELTA --
THANKS FOR THIS MEETING
UNFORTUNATELY THIS IS HARVEST
TIME FOR THE TARGETED
[inaudible]
ARIEL -- I
WOULD LIKE TO HAVE TIME.
I SUBMIT THIS LETTER.
THANKS TO THE SERGEANT MARK.
THANK YOU WITH HAS FOURTEEN
SOLUTIONS --
I'M A MEMBER OF THE GROWER
ORGANIZATIONS WOULD BRIDGER
OCCASION DISTRICT SAM A KING
COUNTY FARM BUREAU --
DISTRICT GRAPE GROWERS
ASSOCIATION AND WHY AREN'T
FARMERS ON THE PANEL.
WE'RE THE ONES WITH BILLIONS OF
DOLLARS PAYING FOR ALL THIS AND
I SHOULDN'T DISTRACT.
GROWER SHOWED UP IN THE NINETEEN
SEVENTIES SAY AND WHY ARE WE
BEING TAXED FOR OUR WATER TO BE
EXPORTED IS CAN WE PRODUCE MOST
OF THE FRESH FOOD CROPS 50% TO
USA.
AND SEMI KING COUNTY IT'S TWO
THIRDS OF THE DELTA [inaudible]
SO PLEASE.
WE NEED TO HAVE THE CHANNELS
WITH SAN JOAQUIN COUNTY FARM
BUREAU.
IMAGINE BEING TOLD.
BY THE DISTRICT WATER MANAGER
THAT GROWERS NEED TO GO TO STATE
WATER MEETINGS I WAS FOUR YEARS
AGO.
OR THEY WOULD MAKE THE DELTA
INTO A DUST BOWL ANTI IT'S
HAPPENING NOW.
ASSIST NINETEEN TWENTY NINE
WE'VE HAD A MINI TUNNEL WITH
THEM CALLED ME BACK WITH DOCTOR
WITH PARTY DAMN.
BAND BEAR CREEK RIVER DOESN'T
HAVE.
AND THERE'S NO MORE SALMON
FISHING THIS IS VERY VERY
SERIOUS THOUGHT WE'RE NOT
HEARING THE SIDE OF THE STORY --
AND I OFFERED FOURTEEN SOLUTIONS
AND I HOPE YOU WILL CONSIDER
THEM.
A TRY TO HAVE SOME HUMOR.
THANKS FOR THIS MEETING.
THANK YOU FOR YOUR PARTICIPATION
IN IT DEPRECIATED NEXT WITNESS
PLEASE ONE MINUTE.
THANK YOU MADAM CHAIR MEMBERS
I'M RON DAVIS --
HERE ON BEHALF OF THE ALAMEDA
COUNTY WATER DISTRICT THE STATE
WATER PROJECT CONTRACTOR IN
pALAMEDA -- I
WOULD LIKE TO INCORPORATE BY
REFERENCE THE TESTIMONY OF
MISTER --
PART A AND M'S PRIOR ON YOUR
STATE WATER PROJECT --
PANEL -- WE
THE ALAMEDA COUNTY WATER
DISTRICT PROVIDES WATER FOR
FREMONT.
UNION CITY AND NEWARK IN ALAMEDA
COUNTY REPRESENTING ABOUT THREE
HUNDRED THOUSAND PEOPLE ABOUT
40% OF THE WATER THE SUPPLY OF
THOSE RESIDENTS COMES FROM THE
STATE WATER PROJECT.
SO IT'S A VERY KEY AND WE VERY
MUCH APPRECIATE YOUR OLD IS THIS
HEARING TODAY BECAUSE AFFORDABLE
FINANCING IS VERY IMPORTANT FOR
US TO BE ABLE TO PROVIDE
AFFORDABLE WATER FROM HIS
CONSTITUENTS.
SO ONE THANK YOU AGAIN FOR THAT
HEARING BUT ALSO LIKE TO ANOTHER
CLIENT EASTERN MUNICIPAL WATER
DISTRICT WHICH IS A A CONTRACTOR
WITH THIS --
METROPOLITAN WATER DISTRICT AND
WE'RE HERE TO EXPRESS OUR
APPRECIATION FOR HOLDING THIS
HEARING IN MOVING FORWARD AS
RAPIDLY AS POSSIBLE AS WELL
THANK YOU APPRECIATE IT NEXT
WITNESS PLEASE ONE MINUTE.
MADAM CHAIR MEMBERS JOHN
O'MALLEY REPRESENTING SAN
GABRIEL VALLEY M. W. D. ONE OF
THE STATE WATER CONTRACTORS IN
MESA WATER.
OF BOTH IN SOUTHERN CALIFORNIA
APPRECIATE YOUR HOLDING THIS
INFORMATIONAL HEARING TODAY.
AND WE ARE IN SUPPORT STRONG
SUPPORT THANK YOU OF IT IN THE
CONTRACT EXTENSION THANK YOU.
NEXT WITNESS.
HELLO MY NAME'S KAREN WILSON.
I'M ACTUALLY FROM.
THE TRINITY WATERSHED --
I WANT THE ANSWERS TO THE PUBLIC
COMMENTS IN THE SEQUEL DOCUMENT
WHICH PROBABLY WILL ONLY TAKE A
FEW WEEKS TO BE COMPLETED BEFORE
YOU.
WOULD GO AHEAD AND CONSIDER THIS
A COMPLETE HEARING.
AND THEN I WANT TO POINT OUT.
THE WATER CODE SECTION ONE OH
EIGHT POINT.
FIVE AND I'M GLAD THAT YOU IN
WERE INVOLVED WITH THE HEARINGS
WITH FEET NATURAL RESOURCES IN
WATER COMMITTEE.
BECAUSE I SEE THAT A LOT OF
THINGS WERE COVERED THERE THAT
ARE VERY PERTINENT HERE --
MAYBE PEOPLE DON'T THINK ABOUT
IT BUT BEFORE IT GETS INTO A
CANAL [inaudible]
THE WATER [inaudible]
COMES FROM [inaudible]
THE MOUNTAINS [inaudible]
SHOW -- THAT
CODE ONE OH EIGHT POINT FIVE
RECOGNIZES.
THAT SOURCE WATERSHEDS ARE
INJURED GIRL COMPONENTS OF
CALIFORNIA'S WATER.
INFRASTRUCTURE.
BELIEVE IT OR NOT WHEN WE SAY
INFRASTRUCTURE SO MANY PEOPLE
THINK ABOUT SOME.
ENGINEERED THING.
SOMETHING MADE OF CONCRETE OR
MADE ME BY PEOPLE.
AND SO I I REALLY WANT TO
EMPHASIZE THAT.
HASN'T BEEN MENTIONED BEFORE BUT
IT'S DEEP IN MY HEART.
THANK YOU THANK YOU NEXT WITNESS.
THANK YOU MY NAME IS DAVID
FREEZE I'M HERE AS A
REPRESENTATIVE FOR THE SAN
JOAQUIN AUDUBON SOCIETY --
THE CONVERSE CONSERVATION CHAIR
FOR THAT GROUP.
AND I JUST LIKE TO POINT OUT
WHAT WE ALL KNOW IS THAT WE
WOULDN'T BE HERE TODAY --
IF IT WASN'T. FOR THE EFFORTS OF
THE W. R. TO TRIED TO TIE.
THE EXTENSION OF THE WATER
CONTRACT TO THE FUNDING OF WATER
FIX AND THE SAN JOAQUIN AUDUBON
SOCIETY IS HIGHLY AGAINST ANY.
APPROVAL OF A OF AMENDMENTS THAT
WOULD --
HELP FINANCE WATER FIX ON ALSO
LIKE TO POINT OUT THAT THE WATER
FIX --
ENGINEERING IS ONLY SENT
COMPLETE THIS CONCEPTION OF IF.
THE DOOR IS OPEN TO FUNDING SUCH
UP.
GIANT PROJECT THAT'S A NOW
ESTIMATED TO BE OVER TWENTY
BILLION DOLLARS --
IT WOULD BE LIKE STARTING TO
FUND A RUN AWAY TRAIN THEY'LL BE
NO WAY TO STOP.
THE FUNDING OF THIS ONCE IT
STARTS SO THANK YOU.
THANK YOU NEXT WITNESS.
GOOD AFTERNOON MADAM CHAIR AND
MEMBERS UP THAT'S ALL ALSO ON
BEHALF OF INLAND EMPIRE
UTILITIES AGENCY.
ARE YOU A IT REPRESENTS AS A
WHOLE SO WATER AGENCY --
REPRESENT A HUNDRED FIFTY
THOUSAND RESIDENTS IN WESTERN
SEEN IN PRINT SAN BERNADINO
COUNTY JUST WANT TO THANK YOU
FOR HAVING THE HEARING --
THEN APPRECIATE ALL THE WORK ON
THIS THANK YOU AND YOU'LL BE OUR
FINAL MEMBER THE PUBLIC.
THANK YOU GERMAN MITCHELL --
MY NAME'S HONEY JACK'S I'M
RESIDENT HERE SACRAMENTAL. ONE
OF YOUR MEMBERS MENTION TRUST --
TRUST REGARDING --
THE AGENCY --
I'M WONDERING IF THE STATE OF
CALIFORNIA TIME MAINTAINING
HIGHWAY.
FIVE HOW'S IT GONNA DO FIFTY
YEARS FROM NOW MAINTAINING THESE
PROJECTS SO THAT'S MY CONCERN.
THANK YOU VERY MUCH APPRECIATE
THAT I THINK THAT WAS A PERFECT
NOTE TO END OUR PUBLIC COMMENT
ON THANK YOU FOR THAT --
LET ME -- IN
CONCLUSION.
DO I HAVE ANY MEMBERS WHO WANT
TO MAKE ANY CLOSING COMMENTS.
OKAY THANK YOU OB LIKE TO THANK
ALL THE MEMBERS OF THE JAIL B.
C. AS WELL AS THE DISH THE
MEMBERS OF THE LEGISLATURE WHO
ARE WILLING TO JOIN US TODAY OUR
PANEL.
AND FROM MY PERSPECTIVE ON ALL
OF YOU MEMBERS OF THE PUBLIC WHO
TOOK YOUR TIME TO COME UP HERE --
AND PARTICIPATE IN THIS
INFORMATIONAL HEARING.
LET ME RESTATE AGAIN.
THAT WATER CODE SECTION ONE FOR
SEVEN POINT FIVE REQUIRES
DEPARTMENT WATER RESOURCES TO
PRESENT IN THE RENEWALS AND
EXTENSIONS OF LONG TERM WATER
SUPPLY CONTRACTS. TO AN
INFORMATIONAL HEARING OF THE
JOINT LEGISLATIVE BUDGET
COMMITTEE THAT WAS OUR PURPOSE
FOR BEING HERE TODAY.
I WILL --
RESTATE.
THAT IT IS CLEAR.
THAT THE LEGISLATURE FULLY
INTENDS TO DO OUR DUE DILIGENCE.
AROUND OVERSIGHT BOTH
LEGISLATIVE AND BUDGETARY.
ON CURRENT AND FUTURE WATER
PROJECTS WE'VE HEARD FROM THE L.
A. L. THAT WE WILL CONTINUE TO
HAVE CONVERSATIONS ABOUT WAYS IN
WHICH THAT CAN TAKE PLACE.
THERE WAS A BILL THAT STIPULATED --
WAYS IN WHICH THE LEGISLATURE
MORE FULLY ENGAGED IN THE NEXT
ITERATION OF AMENDMENTS AND
DISCUSSIONS AROUND MAJOR WATER
PROJECTS IN CALIFORNIA --
SEPARATE AND IN ADDITION TO
THOSE ACTIONS THE LEGISLATURE AS
EXHIBITED BY COMMENTS MADE --
BY COMMITTEE MEMBERS TODAY FULLY
INTENDS TO ENGAGE AND LIVE UP TO
OUR OVERSIGHT.
OPPORTUNITIES RESPONSIBILITIES
AND OBLIGATIONS.
I WOULD HAVE TO DISAGREE WITH
ONE OF THE PALACE IN TERMS OF
THE NOTION THAT TODAY'S
CONVERSATION WAS SUPERFICIAL AT
ALL I THINK IT WAS IMPORTANT NOT.
SEPARATE FROM THE FACT THAT THE
LAW REQUIRES IT BUT I THINK THAT
THERE WAS AN IMPORTANT
MEANINGFUL CONVERSATION I HOPE
WE ALL LEARNED ON AND I AND I AM
CONFIDENT THE DEPARTMENT HEARD
LOUD AND CLEAR.
OUR INTENTIONS TO CONTINUE TO BE
ENGAGED AND HOLD THE DEPARTMENT
ACCOUNTABLE --
IT'S UNPRECEDENTED TO HAVE
MEMBERS TYPICALLY TO HAVE
MEMBERS OF CONGRESS AND LOCAL
BOARDS OF SUPERVISORS PRESENCE
THAT WE THANK YOU FOR YOUR
PARTICIPATION TODAY.
LASTLY I WILL SAY TO THE STAFF
OF THE D. W. ARE --
TO HEAR THE REPEATED.
EXPRESSIONS OF CONCERN AROUND
TRUST.
LEGISLATURE MEMBERS OF THE
PUBLIC -- A
WERE SIGNIFICANT AND PROFOUND TO
ME.
AND I HOPE THEY WERE RECEIVED IN
THE SAME LIGHT BY YOU.
A TRUST --
TO TO LOSE PUBLIC TRUST --
AS A GOVERNMENTAL ENTITY IS
TROUBLING
AND SO PLEASE WORK
COLLABORATIVELY WITH THE
LEGISLATURE.
SO WE CAN COLLECTIVELY REBUILD
THAT BECAUSE THAT IS IN OUR BEST
INTEREST AS A LEGISLATIVE BODY
IT'S IN THE BEST INTERESTS OF
THE RESIDENTS OF THE STATE OF
CALIFORNIA AND IT'S IN YOUR BEST
INTEREST AS THE LEADERS OF A
STATE AGENCY.
WITH THAT THIS INFORMATIONAL
HEARING STANDS ADJOURNED