City Council - Regular Meeting

Oh, everybody's so quiet. Good evening, everyone. I'll call tonight's regular city council meeting for August 18th, 2026 to order. And let's stand if you can and proudly recite the Predictive Allegiance. Madam Clerk, would you kindly do roll call, please?

Council Member Brando Cruz. Here. Council Member Melissa Lamatina. Here. Council Member David Oro. Here. Vice Mayor Mark Joseph. Here. Mayor Pierre Washington.

Here. Report on closed session and confirmation of reportable actions.

When you're ready, Mr. Matt Summers. Thank you, Mayor Washington. The council met in closed session to consider several items regarding public employee performance evaluation for the city manager and several aspects of litigation related City of American Canyon versus City of Vallejo. American Canyon I, LLC versus City of American Canyon. American Canyon I, LLC also versus City of American Canyon. Orchard Partners versus City of American Canyon. City of American Canyon versus Shea. And one item of anticipated litigation. For all litigation matters and for the public employee performance evaluation, the council provided direction to staff and council but took no reportable actions. Thank you.

Thank you, Mrs. Summers. Any questions from council? Seeing none, moving on to proclamations and presentation. Tonight we have one proclamation and no presentation. Our proclamation will be item number four, a proclamation for Chris Morris, honoring his 18 years of dedicated service. Chris, do you mind coming up to the podium? I'm going to read the proclamation, allow you an opportunity to say a few words, and then we'll take a picture together.

Okay, thanks.

Recognition of Chris Morris for 18 years of dedicated service. Whereas Chris Morris dedicated 18 years and five months of service to the city of American Canyon, beginning his career in December 2007 as a maintenance worker, too, and serving until his departure in April 26th. And whereas Chris advanced through the Public Works Department through his commitment, technical expertise, and leadership, serving as a senior worker before being promoted to wastewater collection supervisor in October 2017. And whereas over the course of his career, Chris developed extensive knowledge of the city's wastewater collection system and became a trusted resource to the employees, supervisors, management, contractors, and community members. And whereas his expertise and historical perspective proved invaluable in the development and editing of the city's sewer system management plan. emergency response operation decision making and training of public work staff and whereas Chris generously shared his expertise with his fellow employees helping prepare the next generation of staff to safely and effectively operate and maintain the city's wastewater collection infrastructure and whereas Chris has built A RELATIONSHIP THROUGHOUT THE AMERICAN CANYON COMMUNITY AND CONSISTENTLY DEMONSTRATED PROFESSIONALISM, DEDICATION, AND A STRONG COMMITMENT TO PUBLIC SERVICE. AND WHEREAS, DURING MORE THAN 18 YEARS WITH THE CITY, CRISP CONTRIBUTED TO THE GROWTH AND EVOLUTION OF AMERICAN CANYON AND ITS PUBLIC WORKS OPERATION leaving a lasting impact on the wastewater collection system, his colleagues, and the community he served. Now, therefore, I, Pierre Washington, on behalf of the City Council, do hereby recognize and express sincere appreciation for Chris Morris for his dedicated service to the City of American Canyon and its residents. The City further commends that Chris, for his leadership, professionalism, technical expertise, mentorship, and many contributions to the public works department and wishes him continued success and fulfillment in the next chapter of his life. Thank you.

Thank you, council and staff. I'm really honored. and appreciate this recognition. It's a testament to your guys' great organization to have such long-tenured employees. I'm lucky enough to have learned so much from you guys and everyone. I've met so many great people, learned so much from you guys, Starting as a temp worker in parks my whole career was here My heart is here. I live here. I have a vested interest in this in this city, and I care about it, so I Didn't imagine ending the sewer supervisor when I started in landscaping parks just where my route took me and had so many opportunities here. I can't thank you guys enough. I appreciate it. Thank you. I'm honored. Thank you. Thank you.

Thank you.

At this time, I would like to open a public comment for items that are not listed on tonight's agenda. Each speaker will have up to three minutes to address the council. And when you come forward, if you could please begin by stating your name for the record. And I'll ask Madam Clerk, do we have any speaker cards?

I CERTAINLY DO. WE RECEIVED ONE WRITTEN COMMENT FROM ADELAIDA DOMINGO, WHICH SHOULD HAVE BEEN DELIVERED TO EVERYONE. AND FOR ORAL COMMENTS THIS EVENING, I AM GOING TO START WITH MR. WILLIAM BAKER, PLEASE.

GOOD EVENING, WILLIAM.

GOOD EVENING, MAYOR AND COUNCIL. MY NAME IS WILLIAM BAKER. AT THE JULY MEET IN THE STREET EVENT, I RECEIVED THIS FLYER DESCRIBING THE MEASURE P SALES TAX. AS I READ IT, I FOUND MYSELF ASKING NOT WHETHER MEASURE P IS A GOOD OR BAD IDEA, BUT WHAT KIND OF CITY DO WE WANT TO BECOME? Most cities respond to fiscal shortfalls in predictable ways. They raise tax rates because, well, that's what cities do. But American Canyon isn't and shouldn't aspire to be just another city. Then something occurred to me. I believe American Canyon is the un-city. We just never had a name for it. An un-city doesn't ask what is everyone else doing, but what can we become that no one else is? Some of you may remember several years ago, 7-Up declared itself the Un-Cola. It wasn't trying to be another Coke or Pepsi. It proudly chose to be something different. And I think American Canyon has been doing something similar for years. We just never called it the Un-City. Consider two examples. Where others saw an abandoned landfill on the west side of town, American Canyon created Wetlands Edge Park. a remarkable gateway to the Napa River that now supports extraordinary biodiversity, including American bald eagles. Where others saw an obsolete municipal building, American Canyon is creating the Napa River Ecology Center, a destination that will soon welcome Bay Area students and families. Think about them. Most cities would have seen liabilities. American Canyon saw possibilities. That's what an un-city does. Now the question before us is whether we can reignite that spirit, because Measure P presents us with a choice. Will we follow the path of our neighboring cities because, well, everyone else is doing it, or will we once again choose our own un-city path? What if American Canyon pledged to residents and businesses to maintain the region's lowest retail tax rate? Not because it's easy, but because it demands discipline, creativity, and the courage to grow our tax base, rather than simply raising tax rates. History doesn't remember the communities that accepted the future they were given. It remembers those that dared to create a better one. Let's continue that tradition. Let's embrace who we've always been. Let's proclaim American Canyon the un-city. Thank you. Thank you, William.

Sandra Wall.

Good evening, Sandra.

Hello, Mayor.

Hello, Council. My name is Sandra Wall. I am a longtime resident, 19 years of American Canyon. I actually first came to American Canyon when we had the lottery program, Corvina Way. Great program. I was a winner of the lottery, had been living there for 19 years. I have proudly raised two of my daughters in American Canyon High School. They've moved on to Napa Valley College, gone to Davis. They've moved on. I love American Canyon. I'm invested in American Canyon. I sent an email on the 8th to Jason Hawley. It went unread. It went unresponded. So I'm here today in person. We have a problem on Corvina Way. We were supposed to set up an HOA. We tried to set that up. We had issues. The neighbor that was setting it up moved out of state. It is the Wild West over there. We have no lights. When the sun goes down, we're in complete darkness. The end of the street is all overgrown. We now have cockroaches that run across our yard at night. I addressed this last year in an email, and I was given a picture of my yard saying, hey, if you did this on your yard, you probably wouldn't have cockroaches. And I said, that is not the situation. So I am here today to ask that we can find a path to either move us into the city or to bring an HOA in. We had a gate at the end of our street. It's a private road. When our roads break, we have to fix them. We now have divots in our street. It's a cut through from the apartments. They fly down there 20, 30 miles an hour. Kids have almost gotten hit. We put a fence at the end. The Amazon truck drove through it twice. So we're asking for help. I've gone to all of my neighbors. I came here in person because my email did not... I have a copy of my email to give to all of you guys because it did not get responded to. Next month, we would like to have a conversation, or we're just going to bring Corvina. Corvina Way is going to come in and talk. We've got to do something. We have a safety issue. We have an infestation issue. We now have predatory pest companies coming to our door. SO I SPRAY MY HOUSE EVERY WEEK AND EVERY MORNING I HAVE DEAD COCKROACHES THAT HAVE MADE IT THROUGH UNDERNEATH MY DOOR. NONE HAVE MADE IT INSIDE, BUT WE REALLY NEED SOME HELP.

THANK YOU. THANK YOU, SANDRA. WHO DO I LEAVE THIS WITH? WITH THE CLERK. THANK YOU, SANDRA. Good evening, Rhonda.

Hi, Council. My name is Rhonda Zunica, and I'm here on behalf of the 707 Community Helpers Incorporated. We are a brand-new nonprofit organization.

Rhonda, could you please speak right into the microphone? Thank you very much.

It's okay. Sorry about that. It's okay. We are a new nonprofit organization, and we have come here kind of to tell you what we are all about and to ask for a little of your assistance. We're not asking for a handout. We're asking for kind of a hand up. We're not asking for anything for free. That's not what we're here for. We are here just to serve our community and we would just like your guys' help to do that. This is my president of the board. This is Patricia and I'm gonna go ahead and let her continue on.

Hello, my name is Patricia Romero Aguas-Vivas, and as Rhonda mentioned, I am part of the Board of Directors of the 707 Community Helpers Incorporated, and we're a locally-based nonprofit organization serving families, seniors, and children in need of American Canyon. Currently, we serve the American Canyon community by providing free biweekly food distributions and resources distributions held at community clubhouses, senior facilities, local events, and maintain food stands in local complexes. We currently serve about 300 individuals per month, including 25 to 35, uh, families and children. We're currently only, uh, limited by the space we are in. We have a local, uh, food and resource partners, which include the Napa Valley food bank. Uh, American Canyon family resource center and pastor Terrence Nichols at one church. Currently we are also, uh, we also support the American Ken Lee can, uh, American Canyon family resource holiday distribution programs for more than 15 years. And we have district distributed food. and toys to local families in need of the holiday season. Due to steadily increased costs for food, housing, and utilities, we are seeking an increasing number of community members struggling to make ends meet and to put food on the table each week. To address this need and in our addition To our regular biweekly distributions, 707 community helpers are currently also planning free Thanksgiving and Christmas food and toy distribution in American Canyon. Currently, we are operating from our homes, but we need a place where we can store our food so we can have people come to us and have dignity in being able to get their food. that they most desperately need. We're, what we are, oh gosh, I'm sorry, I'm running out of time, but we're looking for American Canyon to help us out with a location so that we can store this food. And we are, this is not a vision or a dream. We are committed in what we're doing. We already have everything already in place. We're already non-profit. We already have our tax ID. We already have our board of directors. We have our bank account. We have everything that we need. And soon, insurance, as soon as we can get a place that we can call home. Thank you.

Thank you, Patricia and Rhonda, for that information. And you just gave a handout so we could know how to get in contact with you?

Yes. I gave the presentation that you asked me for. Okay. And the email. It's all connected. Thank you. Thank you. Thank you very much.

Thank you.

Gary Kymak.

Good evening, Gary.

Good evening, Pierre. Good evening, council members, members of the public. Some of you know what I'm going to say. My name is Gary Kymak. I live here in American Canyon. I'm speaking tonight because the operations at Adobe Lumber have a direct impact on the surrounding residential community now in many thousands of people. Operations from the mill can begin As early as 6 a.m. weekdays, there is significant noise and dust. I have measured it at 80 decibels in my back garden, which is far in excess of California state law for residential areas. These hundreds of homes are impacted, and there's further residential development planned, as we all know. For those of us living nearby, the impact is real, and it's very adverse. So this brings me to my simple question. Following a California Public Records Act request, I reviewed the records provided to me concerning the property Adobe Lumber and its permitted use. In those records, going back to 1973, under the unincorporated provisions of Napa County, I did not find evidence of a current zoning or use permit authorizing the present scope and intensity of operations at this site. I have requested the city, through Permit Tech and Ms. Nicole Hall, for for these permits, zoning approvals, other legal authority under which the current operations are permitted. I have come here tonight to record that request into the public record. If such an authorization exists, I request the city to provide it. If it does not, I ask the city to explain how the present use has been determined to be lawful. Thank you for your time and good evening. Thank you, Gary.

HUGH MARQUEZ.

GOOD EVENING, HUGH.

GOOD EVENING, MAYOR, COUNCIL. MY NAME IS HUGH MARQUEZ. I'M HERE THIS EVENING. I'M ASKING THE MAYOR AND THE COUNCIL TO CONSIDER NOT ALLOWING ANY DATA CENTERS IN AMERICAN CANYON. There is one proposed in Pittsburgh, California right across the way right now and it appears that data center investors have continually used obsolete planning rules and regulations to get new data centers approved without much public input. In some cases it's said that they have drawn up non-disclosure agreements with city officials to circumvent transparency rules so that they can avoid public scrutiny slash backlash. Our city has been paying for the site's reservoir for water for our city for many years now. I ask to make sure our residents will have continued access to that water in the future. As we know, the data centers use a lot of water to keep their machines cool, so I am asking the Mayor, City Council, City Manager to adopt a resolution to address not having data centers in American Canyon City limits. Our residents have not been paying for future water access just to allow big business to get the water that residents need and want. There are three data centers operating in Sacramento right now and one under construction. And as we move forward with our plan with the 360 acres of the Hess land project, I am concerned that this may be thought of as a data set of company trying to build one there. Again, I am concerned about data centers and would like the mayor and city council and city manager to discuss this matter further and make a plan to not allow any data centers in our community. Thank you.

Thank you, Hugh.

Janelle Selleck.

Good evening, Janelle.

Hi, good evening, Council, Mayor, city staff. I'm Janelle Selick, Executive Director of the Parks Foundation and Napa River Ecology Center. I thought I'd just come tonight and share a little update about our progress over at the site. We're just finishing up our third month of construction, actually ahead of schedule, thanks in part to our great contractor, as well as support from the city as we continue to transition the site from its old industrial uses into new community focus. So things are moving along. Tomorrow evening from 5 to 6.30, we wanted to invite the community and the council out. We're having a construction tour. So if you're free, come on by. We have a safe path that we can walk through the site. I'm happy to share updates on the progress as well as the timeline for construction. We just encourage the community to come out and see what we're up to and also help share input that will shape our future programs as the site opens up most likely next summer. So certainly an exciting time at the project. In addition, I wanted to plug our fall auction. We have a an auction launching on September 1st through September 17th that will support all of our ongoing educational conservation and nature programs for both students and community, as well as help to support the operational scale-up that will happen with all the needs with opening the site next summer. So please come out tomorrow if you're available, 205 Wetlands Edge Road from 5 to 630, and I'll leave some flyers for the auction. Thank you.

Thank you, Janelle, and I'll see you tomorrow night.

Tony Dickinson.

Good evening, Tony.

Good evening. This is my first appearance. I'm actually a Velo native, and I will not call you the back end of Velo. You had our zip code. Anyways, I know there's a time limit, and bear with me just a little bit. I have a bit of a stress PTSD speaking issue. I am here out of grave concern for Napa Olympia. Let me put slightly in perspective. I know that an extra 250 a month even 500 a month on some budgets. It may be Starbucks and a weekend somewhere versus people that are I'll say on rice budgets people with multi-generational families many small children some elders that since June have been fighting the surprise of a 41 percent rent increase it seemed like it was totally from a new property manager actually i now realize it's a bit of a shuffle of majority ownership to a management company and a lot of legalese has gone into preparing statements of how they need to afford upgrades they're also bringing in rules like you can have only 20 no 10 good pot plants or if you have two dogs you can only have one no bigger than 45 25 pounds um I'm coming in a bit late. My mom passed away in May, right before this paperwork came through. And honestly, I've just been so overwhelmed with just trying to apply to stay in the park. In the past, I've had help with things for my mom because she's an elder and sometimes Social Security checks don't go in right and sometimes doing paperwork and resources, but I have to tell you it can be so overwhelming going to resources. that I have been too flooded to really engage with my neighbors. If you want to go online and look for news articles, but we need help and maybe it's not money. I don't know what the legal things are and the cost for experts, but I have people that need to navigate, if this goes into effect beginning of September, the paperwork. Many people do not speak English fluently. They have kids that have gone to high school and college. But this is a community that needs, and we are not your best constituents. Most work too much to come out and sit in this building. They're overwhelmed. They tried to go to a lawyer. The understanding is confused. But on September 1st, a 41% rent increase.

Thank you, Tony. You're at time.

Anybody that could rally and talk to me about how we can help this community, I really, really, we deserve it. You've got your best people going up through high school into college. My neighbor's gonna become a police officer.

Thank you, Toni. I have no other speaker cards.

Good evening, Cindy.

Cindy Biederman, a community member. So I'm back because, you know, that pedestrian bicycle overpass that we so desperately need. I was just pulling up some stats. One says key takeaway from Napa Valley crash data 2023, and I'm sure you guys are familiar with it because you've been dealing with NVTA. Fatality hotspots, Highway 29, American Canyon Road. Peak crash times, 7 a.m. to 9 a.m., about the same time our kids go to school. Again, I'm a grandparent that takes three children to school, one to middle school, now two to high school. I make five, excuse me, now six trips because we've got to add in cheerleader practice. Six trips across this highway from Cookie Hill over here. I'm adding that pollution in the air. I'm adding time on your road. I'm adding more congestion. So I took a playbook, a page out of Brent Cooper's playbook. Can I approach it? You made some AI rendition of what the Highway 29 could look like. I made a rendition that says, this is what our pedestrian overpass can look like with the bicycles.

Looks nice. Good. Safe. Keeps our kids safe.

vulnerable people safe, maybe some disabilities or something keeps them safe, traffic gets to go through. You'll notice on there it says Donaldson Way Road, it says below American Canyon, it doesn't say St. Helena because we're American Canyon. But the other thing is, It also makes a statement. Can you imagine having that out here on Donaldson Way in 29 with the words on there, American Canyon? It says you arrived, not a pass-through. We're a destination. But then again, for how many years, 20, 30 years, I've been hearing, hey, we're the gateway to Napa Valley. Look at the second picture. American Canyon, gateway to Napa Valley. So again, I'm urging you, we have to put some markers out there on that street. We know Napa Valley Transportation and Caltrans is coming through, but they're not here to make our life better. They're making it look nicer. It's going to put the traffic down to 35 miles per hour, but it's not going to make our children safer. Grant from the NVTA told me, hey, you know what? I'm going to put more mediums down there so the kids can hop and stop between the four lanes of traffic. Well, that reminds me of this little video game that my kids taught me, my grandkids taught me, with the frogs trying to get across the street. And if he doesn't make it to that medium divide, splat, he's gone. We do not need to. We need to get the basics in Americanion. We need to let our... children be safe, let them grow up here safely. It took me eight years to get that sidewalk on eucalyptus so our kids can walk to school safely because we didn't have the thought to think forward. So now we had to go undo stuff. I'm asking you guys before Napa Valley Transit comes through here to make this a priority, get our kids. Let's make our two cities united, two sides united, not divided. We have enough division, but let's deny, let's, Excuse me. Let's bridge this together. We have the possibility. Cindy can find some funding. I sent some grant stuff. I know my time's up. Teresa, thank you.

Thank you.

Thank you, Cindy.

I have one hand raised on the line. Justin Hamilton-Hole. Go ahead, Justin.

You mean Mayor C. Koeppner and Teresa? I am Justin Hall. I am an American immigrant, 34 years and from Navajo County. Yeah, I agree with Cindy to say I go on the transportation for me. I always listen to them. I think we need to upgrade Um, how we 29 make it easy. Well, we need new cloth walk for something. I think we're sending it to tell you that we need to keep kids. We say, Hey, go in the soul, go home after soul. So, um, so if you go on, you go to a transportation, you can go into the person or you can go on the zoom, listen to them. So, um, uh, Thank you so much, Sandy, and thank you, guys.

Thank you, Justin.

That is my last hand raised on line.

Thank you, Madam Clerk. I'll close public comment at this time and move to agenda changes. Council, there are four consent items. I'll accept the motion to accept the consent calendar.

I'd like to pull item seven, though.

Item seven?

And then just as a point of clarification, Regarding Napa Olympia mobile home park. I think there's a mediation scheduled or is that being anticipated or Can someone give us a status? Yeah, I mean at some point it'd be good to have a report from our city attorney or city manager Because I know there are things happening there and maybe I'm just as confused but I

Just a quick update. That's your September 1st council meeting. The council will be asked to consider a contract for a mediator. We're aware of the proposed increases. We're aware of the appeal that's been filed by some of the residents. The city's role in this is to convene the mediation, to solicit mediators. We've gone through a list of ones. We took some recommendations and had a panel evaluate those ideas. So We're bringing forward a contract on your September 1st meeting and included in that will be an update on some of the next steps City isn't the Arbitrator and we won't be deciding yes or no good or bad but what we will be doing is providing that venue that a professional mediator can come and listen to both sides both the park owner and the park residents and Hopefully those two groups can come together on a solution.

Perfect Thank you Tonight, we don't have that on our agenda, so we're not going to be talking about that tonight. There is something on the September agenda, so I would encourage you to come to that evening when we have it on the agenda. We appreciate your coming in and sharing. I'd like to ask for order in this chamber right now, and we're going to move on with our agenda items. We pulled one item off of the consent calendar, item number seven. We have three of the four. I will entertain a motion to accept the three out of four, removing item seven. I'll make that motion. Thank you, sir.

I'll second.

Madam Clerk, we have a motion and a second. Can we get a roll call, please?

Council Member Cruz? Yes. Council Member Lamatino? Yes. Council Member Oro? Yes. Vice Mayor Joseph? Yes. Mayor Washington?

YES. AND I'LL DEFER TO YOU, VICE MAYOR, FOR ITEM NUMBER 7.

IT'S ACTUALLY PARTLY BECAUSE OF A DISCUSSION I HAD WITH THE CHAMBER ABOUT CONSENT ITEMS THAT ARE TALKING ABOUT SIZABLE DOLLAR AMOUNTS THAT OUGHT TO BE DISCUSSED. SO I'M NOT NECESSARILY OBJECTING, BUT I THINK IF THE GREEN ISLAND ROAD IS GETTING A $2 MILLION INCREASE, WE SHOULD HAVE A LITTLE BIT OF A DISCUSSION AS TO WHAT'S THE NATURE OF THAT INCREASE. And so that's why I'm pulling it for a little more discussion.

Sure. I'm happy to provide a brief response. And we did have that discussion internally, Vice Mayor. These funds already exist. They exist in a different fund. They've been collected on a pay-go basis since the assessment were first levied within the district. What we didn't do in the last budget cycle was consolidate them within the capital budget. So they've been collected for this purpose for many years and are now we're essentially moving them from one bucket to another for this project. So this is different than the maintenance fund, which is also collecting funds through maintenance activities. This is the capital fund for the capital project that's listed, the Green Island Road project. So this is really an exercise in moving it from one part of the budget to the other, but it was always a planned expense.

Okay.

Thank you. With that explanation, how would you like to continue with item number seven?

I'll make a motion to approve item number seven.

Thank you, sir. I have a motion on the table to approve item seven.

I'll second.

We have a second. Madam Curt, do you mind doing a roll call, please? Yes.

Councilmember Cruz?

Yes.

Councilmember Lamatina? Yes. Councilmember Oro? Yes. Vice Mayor Joseph? Yes. Mayor Washington?

Yes. Thank you, Theresa. And we're moving on to public hearing. We have one item for public hearing, item number nine, the Backflow Prevention and Cross-Connection Control Ordinance. It looks like Norm, you'll be giving that presentation?

Yep.

Thank you, sir.

Got some training on this earlier from the assistant city manager.

This was high enough.

You're doing well. Mayor Washington and members of city council, good evening. Tonight, staff is presenting an ordinance to update the American Canyon Municipal Code regarding the city's backflow prevention and cross-connection control program. The primary purpose of this ordinance is it's pretty straightforward is to protect the city's public drinking water system from contamination caused by backflow or improper cross-connection Backflow can occur when water flows in the opposite direction from the intended path potentially allowing contaminants from a private property or irrigation system industrial process or other source to enter the public drinking water system This ordinance provides the city with a clear and enforceable Framework for preventing from that from occurring the state Requirements for this program are given to municipalities isn't things that we're making up or that staff came up with this rolls down from the city the ordinance also brings the city's municipal code and program requirements into alignment with California's requirements for cross control connection and backflow prevention. Public water systems are required to maintain an effective cross-connection control program designed to protect the public water supply. Historically, these requirements have been associated with Title 17 of the California Code of Regulations, and California has since established updated requirements through the State Water Resource Control Board, and it's now the Cross-Connection Control Handbook Policy. The proposed ordinance provides the local authority necessary for the city to administer, document, inspect, test, and enforce these requirements. And it provides council the following. So the primary action for council for this action for addition is the addition of Chapter 13.08 of Title 13 of the American Canyon Municipal Code. The new chapter establishes the city's backflow prevention across cold connection program and provides requirements for such matters as determining backflow when it's required installation maintenance of approved backflow prevention assemblies testing inspection requirements use of qualified and approved backflow testers and other other requirements and MOVING DOWN, THE GOAL IS NOT SIMPLY A REGULATORY COMPLIANCE. THE GOAL IS TO ESTABLISH A CONSISTENT CITYWIDE PROGRAM THAT PROTECTS THE INTEGRITY AND SAFETY OF THE AMERICAN CANYON DRINKING WATER SYSTEM. The related codes I'm going to speak about here a little bit, but because the cross-connection control affects several of the city's operations developments, this ordinance also makes corresponding amendments through the municipal code, starting with Title 13, Chapter 13.06, water rates, and connection fees. The intent is for the program fees to reflect the reasonable cost of administering the program. The specific fees and future adjustments may be established by city council resolution, allowing city council to update fees without having to amend the municipal code every time there's an administrative fee change. Section 16.4, 16.1408, irrigation. Irrigation systems are particularly important because fertilizers, chemicals, standing water, and other potential contaminants can create a risk to our potable water system and proper irrigation. Protection proper backflow protection has to be has to be provided section nineteen point five one standard conditions of approval This allows cross-connection control and backflow prevention requirements to be incorporated into the city's development review process so that so that protections are identified and addressed as part of the design phase and approve and rather than approval after construction, which is a significant cost savings for us and engineering fees and Title 14 sewer and sanitation services this amendment helps ensure consistency between the city's water wastewater and sanitation requirements where facilities and activities may create potential cross connections and contamination risk and Title 1 general provisions this provides consistency for the city's existing enforcement and penalty frameworks and gives the city the ability to address violations and and voluntarily compliance cannot be achieved, where voluntary compliance can't be achieved. To the administration, one important distinction for council is that the municipal code establishes the city's legal authority and overall program requirements. While detailed administrative procedures can be established by resolution, this provides a lot of flexibility for council. And an example of that would be procedures related to testing, documentation, retention records, approved testers, notifications, administration fees and updated regulations, technology and program costs can change without city council to amend an ordinance every time administration procedure needs to be modified. So every time something needs to be changed, you guys can actually do it. You don't have to. go through a long, drawn-out process of it. Council will continue to maintain oversight because those procedures and fees are established and modified through council action. And what this means for our community, from the public's perspective, the purpose of the ordinance is the protection of our drinking water supply. Most customers will not experience any Any significant change in their day-to-day water service, the requirements primarily apply to property, facility, irrigation systems, businesses, industrial operation, and creates a potential cross-connection that create an existing potential cross-connection backflow risk. Whereas backflow prevention assembly is required, the city will have clear standards for installation, testing, maintenance, documentation, and compliance. And that creates a consistency for the residents, the businesses, developers, the contractors, backflow testers, and ultimately city staff to do this. In closing, ultimately, this ordinance establishes a comprehensive and enforceable framework for protecting American Canyon's public drinking water system. It brings together water service requirements, irrigation, development conditions, sewer, sanitation provisions, program fees, and enforcement under a coordinated cross-connection control program. It also gives staff the tools necessary to administer the program while preserving City Council oversight, fees, and administrative procedures. And with that, that concludes my oral presentation, and I'm available for any questions that City Council has.

Thank you, Public Works Assistant Director Norman Woods. Are there any clarifying questions from the Council before I open it up for public comment on Item 9? I see the Vice Mayor has a question.

Yes, I know we have had backflow prevention devices for years. So what is this ordinance addressing?

THIS IS ADDRESSING THE TITLE 17 CHANGE TO THE NEW CROSS CONTROL CONNECTION HANDBOOK POLICY THAT THE STATE HAS NOW REGULATED. SO EVERYONE HAS TO BE UNDER THAT UMBRELLA AND THEREFORE THE AMERICAN CANDIDATE CURRENTLY WE DON'T HAVE A BACKFLOW CROSS CONNECTION POLICY. THIS WILL BRING US IN ALIGNMENT WITH THAT. SO WE'VE HAD BACKFLOW BUT WE'RE NOT UNDER THAT UMBRELLA OF ALIGNMENT RIGHT NOW. THIS WILL ACTUALLY BRING US

So this is more of an administrative, we're setting a policy, not necessarily changing anything we're doing as much as we're being in compliance with state law and codifying it. Absolutely.

And gives the power to be able to potentially change things, fees and things like that. The city council currently doesn't have all that. It gives you that ability to do that.

All right. Thank you. I see no other question from council. I'll open it up for public comment on item number nine. Madam Clerk, do we have any comment cards?

I have no speaker cards, and I have no hands raised on mine.

Okay, I'll scan the room, see if we have any comments inside the room. Seeing none, I'll return back to council. I believe this is just a waiver for the first reading tonight? Yes, it is.

Okay, so any action that needs to be done?

No, we would also vote to introduce the ordinance if that's the council's decision I'll make a motion that we waive first reading and read by title only An ordinance to amend the American Canyon Municipal Code adding chapter 13.08 to title 13 relating to backflow prevention and cross-connection control and related amendments to the Municipal Code BECAUSE I'M EXPEDITING THE PROCESS.

THANK YOU, VICE MAYOR. WE HAVE A MOTION ON THE TABLE. I SECOND. WE HAVE A SECOND. MADAM CLERK, WILL YOU DO A ROLL CALL, PLEASE?

I'M SORRY, WHO IS THE SECOND ON THAT?

SECOND IS COUNCILMAN MCCRUISE.

THANK YOU.

THANK YOU AGAIN, NORMAN.

Council member Cruz? Yes. Council member Lamatina?

Yes.

Council member Oro? Yes. Vice Mayor Joseph? Yes. Mayor Washington?

Yes. And thank you, Madam Clerk. Business items. We have four business items this evening on tonight's calendar. The first being item number 10, the utility finance update. Our finance director, Jim Cruz.

Good evening, mayor and council members and community members. I'm Jem Cruz, the finance director for City of American Canyon, and tonight I'm gonna provide an update on our utility finances and review how the actual financial performances compares to the assumptions used in the enterprise rate study that was adopted in April of 2024. We will focus on wastewater, recycled water, and water operating funds. We're gonna look at the revenues, expenses, reserves, and overall fund balances. And we'll also discuss how the timing of the rate implementation affected the financial results. So tonight's presentation is organized into four sections. First, I will provide an overview of the enterprise rate study and discuss implementation steps that were taken. Then we'll move on to the wastewater operations, recycled water operations, and water operations, looking at the fiscal years of 23-24 through 25-26. For each utility, we'll compare actual revenues and expenses to the projections used in the rate study and review reserve and cash balances. We're looking at these years because the rate study assumed implementation on the last quarter of 2024. And so we're gonna start with that year and then up to last year's results. The utility rates currently in effect were adopted by council on April 2nd of 2024. based on a fee study completed by NBS. At that same meeting, staff was asked to return annually with an update on how the utilities are performing. So the rate study assumed that rate adjustments would begin in April of 2024 and continue every January thereafter. But operationally, we don't usually implement rate adjustments in April. We usually do them in January of each year. So we... implemented the rate adjustments in January of 2025, which follows our normal utility billing schedule. So because of that timing difference, there will be variances with the revenues and throughout the presentation. So moving on to let's start with the wastewater operations. The wastewater operating fund entered the rate study period with a strong cash position. Over several years, the fund accumulated reserves due to lower operating costs than originally projected. And in addition, a number of capital improvement projects were deferred, which allowed cash balances to remain higher than anticipated. As we reviewed the financial results, you'll see that while revenues have lagged behind projections, the funds reserve position has remained healthy because expenses have generally been well managed. So like as we're budgeting each year and doing the projections for the revenues we usually try to make sure that operationally they they're balanced and any draws from the fund balance are usually due to contributions to capital improvements. So let's start with the revenues. In the rate study, since it was assumed the implementation was in April, the revenues trailed the projected levels each year. So the differences between the rate study revenues in actual is mostly due to that timing difference. When we get to fiscal year 24-25, there is a higher, there is a higher delta between the rate study and the actuals, 1.18 million below the projection, and most of this variance was attributed to the delayed implementation, but also with the closure of the Coca-Cola facility. We had that facility only for half of the year, for that fiscal year. And then in fiscal year 25-26, we had no revenues from Coca-Cola, and so the estimated revenues were below the projections by about 1.6 million, also due to the timing difference and then a combination of the loss of that customer. Looking at the expenses, actual expenditures in fiscal year 23-24 were about 3.3 million lower than projected. The largest factor was about 2.5 million in capital projects that were expected, but ultimately deferred. And additional savings was realized in personnel, contractual services, and some operating costs. In fiscal year 24, 25, and 25, 26, expenses have been much closer to the rate study assumptions. And contributions to the capital projects increased corresponding to the postponed spending in the prior years. So you'll see like the bigger loss in the actuals in the 25 and 26. And that was kind of planned because in the rate study, the deficit was projected to be a lot bigger. So although the revenues underperform, expense management helped to mitigate the impact on the fund. This slide shows how the wastewater fund's cash position compares with the rate study projections. The operating reserve represents our emergency reserve. So you'll see we're able to maintain the operating reserves that were set for the rate study, which is 25% of the annual operating expenditures. Much like our general fund, it's the break glass in case in case of emergency fund of twenty five percent provides protection against revenue shortfalls major asset failures and unexpected emergencies the capital reserve is also uh... fully funded and is intended to support long-term infrastructure replacement and rehabilitation needs. And it's maintained at about 3% of the net capital assets. So it is the repair and replacement fund for capital. The most significant difference between projected and actual balances is the unrestricted cash. So by the end of fiscal year 25-26, the rate study projected unrestricted cash of about 153,000, but the actual unrestricted cash is estimated at approximately 1.9 million. As a result, the total cash remains substantially higher than anticipated despite recent operating deficits. IT IS ALSO IMPORTANT TO NOTE, SO THERE'S CURRENTLY AN INTERFUND LOAN BALANCE OF ABOUT $1.1 MILLION THAT IS OWED TO THE WASTEWATER CAPACITY FUND. SO BACK IN 2015, when this interloan fund happened. The wastewater fund was actually operating a deficit and had to borrow money from the wastewater capacity fund. So this is something to think about. It's due in 2031 to be paid off. And so that is the wastewater operations. Is there any questions so far on wastewater before we move on to recycled water?

Vice Mayor has a question.

Yes. So at one level, it looks very good to say, hey, we've got 4.6 million in cash when we thought we'd only have 2.9. But is that in part because we have some capital projects that haven't happened and that when they happen, our cash might look worse than the 2.9?

Actually, yes, so looking at the five year wastewater operating CIP, it's scheduled to, so for the next five years, the total CIP contribution from wastewater operations is 6.7 million. With total capital CIP being about 8.7 million, so two million will come from capacity And then 6.7 is currently coming from wastewater operations for the next five years.

So we do have a problem at the end of the day, unless we defer all those capital projects, and that's a problem in and of itself. But OK. So that helps to put the numbers in perspective. Thank you. Council Member Lamartina.

Thank you, thank you for that presentation. Couple questions. What wastewater capital projects have been deferred and when do you see the need for us to actually fund them?

So the, let's see. So back in 23, 24, where there was a large project WHERE THEY ANTICIPATED A DEFICIT OF THE 3.1 MILLION. SO THE THREE PROJECTS DURING THAT TIME WAS THE RANCHO PROJECT, THE SCADA IMPROVEMENTS, AND THE BROADWAY SEWER REHABILITATION PROJECT, WHICH I BELIEVE THEY'RE ONGOING NOW. YEAH. AND SO THAT'S WHY THERE'S THE LOSSES IN FISCAL YEAR 25 AND 26 IS 1.2 MILLION.

Thank you.

No other questions.

So moving on to the recycled water fund. The recycled water program has been in operation since 2010 as part of the city's broader water enterprise. But in fiscal year 2020-21, the recycled water enterprise fund was established to separately account for the operations and maintenance of the recycled water system. with the long-term goal of becoming self-supporting. While progress has been made with the deficit gap closing, the utility continues to rely on existing resources as revenues grow and rates are phased in. The recycled water fund continues to experience operating deficits, although the gap is gradually narrowing. Those are the circled... actuals, so it went from a deficit of 900,000, in 24-25 it was 800,000, and in 25-26 we narrowed that to 578,000. The revenue performance was below projections each year, primarily due to that same implementation timing issue. And then on the expense side, actual costs have generally been higher than projected, resulting in larger deficits than anticipated by the rate study. I also included the operating expenses, and then so the difference between total expenses and operating here is payments to the debt service, So those are the differences between like the regular operations and then the total expenses that are shown. And then, so we continue to monitor closely the operating expenses and ensure that they align with what was the assumptions in the rate study. In the next couple of years, we anticipate increased recycled water utilization, including the development of the water fill stations currently planned for 2027. to be available at the Eco Center and Water Reclamation Facility. And there's more connections anticipated in the next couple of years with Watson Ranch, Canyon Estates subdivision, and Tower Road. So the continued operating deficits placed pressure on the fund balance. So the rate study anticipated deficits during the transition period, but actual results have been larger than projected. In fiscal year 25-26, the rate study anticipated a negative fund balance of about 276,000, but it's currently closer to negative 1.8 million. While this reflects ongoing challenges within the recycled water enterprise, we're actively monitoring the fund and evaluating opportunities to improve long-term sustainability through operational efficiencies and expanded water, recycled water utilization. Let's see. Is there any questions on the recycled water before we move on to the water fund?

Seeing none.

So water operations. Prior to the most recent rate study, the last comprehensive rate study was completed in 2017. Over time, the water fund accumulated significant cash reserves primarily because capital expenditures and contributions to capital projects were lower than originally anticipated. The current rate study assumed that operational revenues and expenditures would generally balance over time, while accumulated reserves would gradually be used to support planned capital investments. So as we will see, the fund continues to maintain strong financial position. Water revenues generally perform close to projections, despite the rate implementation timing differences. In 23-24, actual revenues slightly exceeded the projections. In 20-24-25, revenues were within about 3% of the projected levels, and by fiscal year 25-26, estimated revenues were significantly below the projections, primarily due to the Coca-Cola facility was no longer an active customer. Before closure, that account generated roughly $1 million annually in utility revenues. On the expenditure side, fiscal year 23-24 expenses were about $5 million below projections, and the key factors included the deferred capital spending, lower water purchase costs, so the purchases from the North Bay Aqueduct and Vallejo, and NAPA were lower than anticipated and reduced debt service payments, personnel vacancies, and other operational savings. In fiscal year 25-26, expenses were estimated to be approximately 2.3 lower than projected, primarily due to lower water purchase costs and lower than anticipated sites projects expenditures. Overall expense savings have largely offset the revenue shortfalls. So the water fund remains financially strong and continues to exceed reserve targets established in the rate study. They're still able to beat the 25% operating reserve and the repair and replacement capital reserve, and they're fully maintained throughout the three years. The most notable difference is the unrestricted cash. So for fiscal year 25-26, the rate study projected unrestricted cash would decline to approximately negative as reserves were used to support planned capital projects. Actual unrestricted cash is estimated at approximately $6 million. As a result, total cash balances remain well above projected levels and continue to provide flexibility for future infrastructure investments and operational needs. Overall, the water enterprise remains healthy financial position and is successfully maintaining both operating and capital reserves. And then I also looked at the CIP for the next five years for that one. And so water operations, Although the total capital projects are about $10 million, 6.5 is coming from the capacity fee funds. So it's 3.3 million that Water Operations is the fund source for future CIP. Okay, and so that concludes the utility finance update. In summary, revenue performance was generally been affected by the, it doesn't really match the rate study because of the implementation assumption. And expense management and previously accumulated reserves though have helped maintain strong financial positions in both the wastewater and water enterprises currently. The recycled water enterprise continues to face challenges, but we're actively monitoring operations and pursuing opportunities to improve long-term sustainability. So thank you, and I'm happy to answer any questions.

Thank you, Jim. It's really informative and thorough, so I appreciate the report. Vice Mayor Joseph.

Okay, so this time around for water, it looks like we actually have enough cash to cover our capital plans, so that part's the good news. But it is concerning that Coca-Cola's departure really DID MAKE A BIG DENT. AND SO THE CONCERN IS THAT WE'RE ONLY LOOKING AT 25, 26 BECAUSE THAT'S THE YEAR THAT ENDED. BUT THE QUESTION THEN BECOMES WHAT ARE WE GOING TO DO TO COMPENSATE FOR THAT LOSS? AND IT GETS REALLY COMPLICATED BECAUSE TO THE EXTENT THAT THE RECYCLED WATER base needs to expand. As we increase recycled water customers, that's going to be a reduction in potable water. So the Coca-Cola departure becomes a little aggravated because, for example, if we put Tower Road customers on recycled, they're not buying potable anymore, and now we have less potable water revenue. So in looking forward over the next five years, how are we addressing the fact that we have this million-dollar hole in the water revenue that's going to get made a little worse if we're successful in recycling and we need to because it's really in the hole.

Yeah, and that goes to show the importance of this industrial area and the use and the businesses that we would attract to this. To be there. I mean it also not just with the water like property tax. They also contribute and so that is something that You know the city would probably just looking at the industrial area what businesses we can attract maybe Something similar to the coca-cola or that use I Would agree and I think it highlights

HOW IMPORTANT THE INDUSTRIAL PARK IS BOTH IN TERMS OF THE GENERAL FUND, PROPERTY TAX SALES AND ALL THAT STUFF BUT FOR THE UTILITY FUNDS BECAUSE A LOT OF TIMES WE DON'T PAY ATTENTION TO THE UTILITY FUNDS BUT THEY ARE ACTUALLY They're subject to some issues. So all of this is going to become more relevant as we get into sites and the urban water management plan. But I think for me the message is right now we're okay. There's a lot of red flags out there that we should be worrying about.

Yeah, there is also in the RAIT study, I think the sites, the contribution to sites, there was a projected contribution also to sites as well.

Okay. All right. Well, like I said, I think there's... I think it's okay for now, but clearly it's kind of like the general fund. We're balanced today, but there's red flags out there, and we need to be worried about it. Thank you.

Thank you, Vice Mayor. Seeing no other questions on the council, I'd like to open up to public comment for item number 10. Madam Clerk, do we have any speaker cards?

I have no speaker cards and no hands raised online.

Yeah, I'll scan the room, see if there's anybody in the room that want to raise their hand and make a comment.

I think I had a late hand raise here online.

Yeah, we have a late hand raise inside here, too. All right. We'll go with the one online first, and then we'll go with you, Hugh.

Okay. I'm going to call Justin Hamilton-Holt. Go ahead, Justin.

I think this is a topic about water, drinking water. I think when you did, like... make sure the wire is safe and make sure we need to check the wire. Thank you.

Thank you.

Thank you, Justin.

Hugh Marquez.

council um mayor i just want to thank you for this report uh i was on the utilities commission and we actually requested something like this to be implemented and so i'm glad to see that the council took the committee's uh recommendations uh and um This is being done. Site reservoir is very important to me. We've been paying for that forever since Joan Bennett was on the Utilities Commission, which was a long time ago. She put it on. I see Mark looking, but she was on the committee. I know that. I'm glad, as the report comes out, that sites will eventually get done. But again, I'm glad to see that you guys took the recommendation of the committee and are now coming to the public and the council and giving updates on what our rates are, what they're being spent on, and what we need and what we don't need. Thank you.

Thank you, Hugh. We do listen. Anyone else in the room? Yes, sir. Gary, you have to speak at the...

Thank you, Mr. Mayor. I haven't followed all the technical details from Ms. Cruz, but one thing that struck me from a...

Please speak a little bit louder right into that microphone. Thank you.

How's this? Good. You're good. I just have a general question from an accounting point of view. I noticed that the, and I might have missed this, the rate study was from 2017 and the economic turmoil we have experienced since then has possibly led to the concerns that Mr. Vice Mayor Joseph has referenced. The delta is many millions of dollars. Is, has a new rate study been commissioned that will readjust this discrepancy, that will put us back on track, or have I missed that? 2017 is ancient history, and to base our figures and projections upon an antiquated study is of deep concern. So I don't know the answer. I might not have followed it, but that is something I would like to have an update on from the council at some point, please.

I WILL DEFER TO THE CITY MANAGER. THE LAST RATE STUDY WAS COMPLETED IN 2024. SO WE ARE ESSENTIALLY WRAPPING UP YEAR TWO OF THAT RATE STUDY. WE ARE LOOKING AT DOING A RATE STUDY SOMETIME IN THE NEXT YEAR. ESSENTIALLY OUR LARGEST CUSTOMER CLOSED. SO THE IMPACTS OF THE RATE STUDY WERE LARGELY MUTED BY THE LOSS OF A CUSTOMER. projections came in lower both on the revenue side and on the expense side, but it's from 2024 is when the last one was done.

Okay, thank you. I didn't pick that up from the presentation. Thank you, Mr. Hawley. Thank you, Gary.

One more scan of the room. I will close public comment on item number 10, return to the council for further discussion. This is a read and file type report, but I want to come back to the council if there's any closing remarks. Seeing none, well, then we'll file that report. Thank you, Jim, again, for the presentation. Our second business item tonight is item number 11, the Sites Reservoir Project. And I would ask if our city manager, Jason, could make the presentation and introduction to, I believe, is Phil Braugh? Yes. So, Jason?

Yeah. Thank you, Mayor. the second in a series of updates related to utilities, this one much more specific around water and water supply. Excuse me. And talking about the Sites Reservoir project, I think Hugh knows it very well, one of our speakers, but some of the audience may not be as familiar with it. So with me tonight I have Phil Brunn. Phil is a retired annuitant working for us after an extinguished career with the city of Napa doing all things water for them. If you want to slow the next slide, Phil, that would be fantastic. So Phil's been brought in to help us manage our participation in this project. And this project is an extraordinary opportunity. This imagery here I picked because it was meant to evoke the moon landing. And this is kind of what we're talking about as far as our participation in this project. This community has grown and developed and become What it is today, one of the challenges that we've had all along is not having any storage. I mean, like annual storage. We have water tanks for daily storage. I'm talking now annual and multi-year storage. And we've been able to accomplish a tremendous amount despite not having that storage. And over the years, water supply has been a critical issue. The council almost two decades ago now formed what they called the Blue Ribbon Committee on Water Resources. It was made up of electeds and staff and professional folks to look at water resource issues. And finally, in 2014, the council was presented with some options and ideas about water supply. We looked at groundwater. We looked at desalinization. We looked at potable reuse. We looked at building our own reservoir over in Jameson Canyon, all manner of things, including the participation as a member of the Sites Reservoir Project. So go to the next slide, please, Phil. This project is a new surface water reservoir located west of I-5 near the little town of Maxwell in a very remote area where nothing else exists. And this project has been part of a vision since the 1950s. The Federal Government Bureau of Reclamation was looking at it. It has a counterpart in Southern California And most notably, this particular reservoir is not on stream. It's known as an off stream reservoir. And so this reservoir doesn't dam any rivers. There's no blockages of any rivers of any sort. And so this sites reservoir project will seek to reuse some existing infrastructure. And it's a locally generated project, at least in the early stages, And then they began to solicit investors across the state, including the city of American Canyon. We're the only participant committee member investor in Napa or Solano counties, and really the only one north of the Delta, aside from the folks in the Sacramento Valley who are proximate to this project. Here, what you see on this map is the reservoir itself, some of the existing facilities, and some of the infrastructure. that would get built. And if you wouldn't mind clicking the next slide, Phil, I think we have a video that tells a little bit better story than I can.

Hi, I'm JP Robinette. I serve as the engineering and construction manager for the Sites Project. I'd now like to take you on a tour of the proposed Sites Reservoir, located in Colusa County, about 65 miles north of Sacramento. Tucked in the rolling foothills of the Sacramento Valley, just west of the small farming town of Maxwell, Sites Reservoir is a bold solution to one of the state's most pressing challenges, climate-driven water supply uncertainty. This off-stream reservoir will capture and store water during wetter periods when flows in the Sacramento River are high. That water can then be released in drier times for communities, farms, and the environment. At full capacity, sites will store up to 1.5 million acre-feet of water, enough to meet the annual needs of 7.5 million Californians. It will become the eighth largest reservoir in the state. But how does the water get there? Sites will use existing water infrastructure to minimize cost, reduce environmental impacts, and accelerate delivery. Let's start with the Tehama Colusa Canal System. Water from the Sacramento River is diverted at the Red Bluff Pumping Plant, an existing federal facility operated by the Tehama Colusa Canal Authority. During the non-irrigation season, when flows are high in the river, this facility will move water into the Damoclusa Canal, where it will travel about 70 miles south to Funks Reservoir, an existing intermediate reservoir just a mile from the future site's location. Funks Reservoir, which has a capacity of 2,250 acre feet, helps regulate water flow into sites and maintains an operational balance. Water may also be diverted at the Hamilton City Pump Station, operated by the Glen Calusa Irrigation District. This station already serves agriculture, private habitat lands, and wildlife refuges. Water travels down GCID's 65-mile main canal and arrives at a new terminal regulating reservoir, roughly four miles from sites. With a storage capacity of 600 acre feet, from there, the water is pumped via large diameter pipelines directly into Sites Reservoir. These two delivery paths are integral to how Sites captures water when it's available. The project also includes significant infrastructure upgrades, including over seven miles of pipeline, seven saddle dams and two saddle dikes to hold water in our natural valley, and two large dams, Sites Dam and Golden Gate Dam, on the eastern rim, carefully designed to avoid disrupting rivers or fish migration. In the past year, the Sites Project Authority acquired key properties that are necessary to build the reservoir. This land is where both Sites and Golden Gate Dams will be located. So how does the water get delivered to our partners that use the Colusa Basin Drain? Sight's reservoir connects to the Dunnigan Pipeline, which can return water to the Sacramento River. From there, it reaches partners through existing conveyance systems, benefiting cities, farms, and even delivering dedicated environmental flows as part of the Prop 1 ecosystem public benefit. Sites participants who have water stored in sites all have access to their water at the same time. No agency or entity is prioritized over another. Participants have control over how and when they use their water. They can use it, sell it, or store it. It's their choice. To support local communities, the project will create thousands of jobs, boost regional economic activity, and will build or realign 46 miles of roads, including the Sites-LaDoga Bridge, which preserves east-west connectivity for the surrounding rural communities. Sites Reservoir is more than a reservoir. It's a climate-resilient investment in California's future. It's time to build sites now. Learn more at sitesproject.org.

Bill, if you want to go to the next slide. And I'm going to turn the presentation over to Phil here in a moment. But as that presentation kind of explains, this is a significant project, and it's an opportunity for American Canyon to solve one of its challenges that has existed even before incorporation, and that being part of a storage project. looked at doing our own project over in Jameson Canyon and this still was not as cost effective as participating in sites in part because when you talk about building and spreading risk and you talk about owning a reservoir and all of the all of the challenges it takes with doing your own thing. It is very much simpler to be part of a large consortium and a large group doing things at scale rather than having to do it all yourself. One of the really challenging things about this project and the path that we're on is thinking about the future. And I'm not talking about the next generation. I'm not talking about general plan build out 2040. I'm not talking about those time horizons. I'm talking about 100 years from now. 200 years from now. This project, as you see, doesn't have a lot of the challenges of other surface water projects that dam up rivers. The Hoover Dam has been around for roughly 100 years. It's suffering some challenges now, but it stems rivers, right? And you see this with other surface water reservoirs that block rivers that are moving. In this case, this is a bathtub in an area where there is literally nothing else. And aside from the dams themselves and some of the infrastructure there, This will continue to last for a long time. We've got investment partners across the state, across the nation, and across the layers of government. The federal government and state government are paying about a third of the cost. And so can we look to ourselves to look out to that time horizon? We're talking like our grandchildren's grandchildren, like that sort of time horizon to solve one of our challenges. There are expenses involved, and part of what Phil's been analyzing is, you know, what is it going to take for us to be able to absorb that? We're looking at roughly 40-year-long kind of loan payments. That's the kind of time horizons. But that's on something that will last 200 years or more. And so how do you have that perspective of, yeah, there's a period of time where we're making those investments, but this will far outlive the investment period, and then, really result in a tangible asset and one that we're part of that's much bigger than just what we're doing ourselves. And so I'm going to turn it over to Phil, and he can give a little more background on the project itself, including some of the reliability of the water and the delivery of the water, as well as the revenue streams that we'd be needing to look at to be able to look at our participation. And really, the question we have tonight, although this is an action item, the question we have tonight is, is our participation level in this project the right level? Should we be looking at keeping that level? Should we be looking at reducing that level now that we have a better understanding of costs? Just being a part of the project provides us access to amounts of water through partners in any one particular year, being at the table as opposed to looking from the outside in. So I think that's an important consideration. We can talk some more about that. But I'm going to turn it over to Phil Brown, and he can kind of explain some more of these next slides.

uh... very good thank you jason uh... and good evening uh... mayor washington council members uh... it's pleasure to be here uh... and and cover this with you and uh... maybe before i jump into the background i'll just add a little bit to the vision as the manager of nappa's water for a long time uh... I was extremely pleased to have two reservoirs to manage, to use, to store water, to manage as our own. And I always marveled at the community way back in 1910 and 1945, 46, that they made an investment in Millikan Reservoir and Hennessy Reservoir. A million dollars to build Hennessey Reservoir was a lot of money back in the mid-40s, and it was a bold look forward for the community, and it was a pleasure being able to have that. And I will say I envy your position. I wished back in 2017 we in Napa would have had the same vision as you to participate in sites, and later we got on the waiting list, but I wish we had... followed your lead in that vision. So I'll at least start with that. So let's jump into the background. I was here a number of months ago to give a background report to you and I'm gonna redo some of that and make sure you are up to speed with what Sites Reservoir is all about. And then we'll jump into some of the THE REVENUES, EXPENDITURES, AND SOME OF THE THINGS THAT ARE RELATED TO FINANCING OF THIS PROJECT. SO THIS IS A 1.5 MILLION ACRE FOOT RESERVOIR. SO IN COMPARISON, IT'S JUST SLIGHTLY SMALLER THAN LIKE BARRIESA, RIGHT? WHICH IS A HUGELY VALUABLE ASSET HERE IN OUR COUNTY. AVERAGE ENERGY DIVERSIONS, ABOUT 300,000 ACRE FEET. AS JASON MENTIONED, THOSE ARE OFFSTREAM DIVERSIONS, OR OFF, YOU KNOW, DIVERTING WATER WHEN THE DELTA AND THE SACRAMENTO RIVER ARE IN EXCESS. SO WE HAVE LARGE STORMS, WATER IS AVAILABLE, IT COULD BE DIVERTED. The current project cost in twenty twenty four dollars is seven point five billion dollar project. So this is a big project a big bold project for California although we do need to talk about because a project like this takes time to build over time inflation messes with that $7.5 billion. And so as we move forward in this presentation, we'll talk about a $9.4 billion construction estimate. That's escalated dollars as we spend money on the project over the eight years of construction. There are 30 participating agencies across northern and southern California, ag districts, municipalities, water districts, et cetera. In terms of is the project ready to go, it is absolutely ready to go. The CEQA and NEPA environmental documents are all completely done. We expect to receive the final water right from the state of California on November 3rd. THE SITES AUTHORITY EXPECTS TO OPEN AN INVESTMENT PERIOD FOR ALL OF THOSE 30 CURRENT PARTICIPANTS THAT WILL END ON DECEMBER FOR EACH OF THOSE AGENCIES BASICALLY TO SAY YES OR NO. WE'RE IN OR WE'RE NOT. AND WE'RE READY TO GO TO CONSTRUCTION. I THINK 30% DESIGN HAS BEEN COMPLETED ON THE PROJECT. Company on board that's doing some initial constructability review of the plans So it's really ready to go groundbreaking as early as January and with a reservoir operational projected out in 2034 As far as the background of American Canada's participation, you made the bold step in February of 2017 to authorize participation for 4,000 acre feet of yield. And as we go through this presentation, we'll talk a little bit about what 4,000 acre feet means. Your investment to date has been $3.6 million to be a participant in this process to get the project to where it is today. The storage amount, right, in the bathtub, so to speak, is 25,000 acre feet. So that's what that 4,000 acre feet of yield is. has turned into as far as your piece of the reservoir. So that's a 25,000 acre feet reservoir. It's only 1.8% of the project, so there are much larger participants, Metropolitan Water District, Coachella Valley Water District, a number of other ones that have much more storage in the reservoir. But your storage is your storage, as you saw in the video. Nobody else can use your storage. You manage it. Just like it's sitting out in Jameson Canyon, it just happens to be sitting up west of Maxwell. As a comparison to other reservoirs here in the valley, what does that 25,000 acre feet look like? It's a little less than Napa's Lake Hennessey at 31,000 acre feet. It's much, much more than Bell Canyon Reservoir, which is owned by the city of St. Helena. As the video showed, this project benefits greatly from existing infrastructure, both to get water into the reservoir and to get water back out to the Sacramento River, and frankly, to get it from the Sacramento River to us in American Canyon. So our delivery would be through the state water project system, the North Bay Aqueduct system. DWR is going to be a signatory to this agreement, and they will be conveying the water through their facilities, both to American Canyon and then to many facilities south of the Delta through the California Aqueduct. I think it's also important to note that the water right permit or the use of the water that is stored in sites and managed and owned by American Canyon is available for use in all of Napa and Solano County. So the water right to permit in the area of use For the sites water includes the in both the entirety of both counties. That's very valuable in terms of how the state water project or the North Bay aqueduct is connected to agencies in Solano County and Napa County and this water can move through those facilities and to a variety of potential future customers who you may sell some water to if you choose to. And we'll talk a little bit more about that as we go. And I'm going to cover a lot of stuff, so if there's a question, I'll defer to the mayor.

We'll take notes, and when you're done, we'll get you.

I'll roll through it then. So let's talk about water supply. I think you've heard kind of from Jason, this is a historic and unprecedented opportunity. I think Sites Reservoir, they've been working on this for 30 years. I don't think we're going to see another project like this in the next 50 years. plus this type of project is greatly needed by the state of California and provides extreme amount of benefits and it provides you an American Canyon an opportunity to diversify your water portfolio and add a reservoir to that and it comes at a time where you do see the state water project the reliability has decreased over the years I can remember back In the late 90s, 2000s, we were getting 100% year after year after year, and we don't get 100% year after year after year anymore. And so there are some challenges with that system, and we have to ride the wave of, you know, Better than normal, less than normal allocations from the state water project. So that's important to think about. You will, I'll foreshadow the next report you will see in your urban water management plan that you do have a stable supply, right? Demands have gone down in all communities across California. You do have a stable supply. However, as you get to a drought year, You are very reliant on a single source and that is your Vallejo water and that is almost primarily what you rely on during a single year drought and in some cases your multiple year droughts. So that's important to remember as we move forward. I think you all know you've all thought about water supplies and what they mean to a community. Stable water supply is huge to your community, to your economic development, for you to decide what you do and where you do it. If you choose to do that, having the stable water supply gives you that foundation, that base to work from over the many, many years in the future, as Jason said, 100 to 200 years. And as Jason also mentioned, a number of long-term water supplies have been studied. Sites has been determined to be the best option, and that's frankly why we're here. So the bathtub, I won't go over everything in this slide, but the bathtub represents your storage. Diversions occur in excess periods. The Sites Authority manages those diversions pursuant to the water right permit. and and tries to maximize those diversions when that water is available right to fill the storage if and each participant storage fills right based on you know if a hundred units are coming in American Canyon has 1.8 percent of those so 1.8 units come to you as long as you're as long as you're space in the bathtub, your little condo, so to speak, right? In this big condo complex called Sites Reservoir. As long as you have room in your piece, you will get diversions into your storage. And then you manage. You manage what's in that reservoir. That's the beauty of it, is it's yours to use, to sell, to store. Right, those are the three main things that you can do with it and as you release it, you decide what happens to that and when it gets released on an annual basis. So let's talk a little bit about annual yields. Over the last few months, Jason and I have been working with the modeling folks at the Sites Authority. They have done extensive modeling over a hundred year period. So they've basically taken a hundred years of data of what actually happened and they plugged it plugged it into sites and said okay if all of this happened over again what would you know how would sites fill how would releases occur and they got down to individual agencies that were participants and we had them look at you know closely at American Canyon so we had them look at the 4,000 acre foot yield piece and the the chart you're seeing here is just a probability of exceedance chart and it's basically saying that if In 68% of those years over that 100 year period, 4,000 acre feet was available in your reservoir to divert. Now, some years there might have been more than that. The model simply said, if I've got 4,000, I've got 4,000 that were good. Some of those years there might have been more. So we asked them to, hey, push it a little harder. How much could we actually get? So we can, once again, manage the diversions. You don't typically just sit on a full reservoir and wait for a drought. You want to use that reservoir. You just don't want to use too much of it. So when you do need it, it's gone. So we asked them to model 10,000 acre feet, right? So if we pushed the model and we see here in 24% of the years, 10,000 acre feet of water was available to divert from the storage. So this gives you some indications of how water might come out of the reservoir and be used locally or conveyed to others. So let's jump into some of the costs here. And so as I said, we're talking about the $9.4 billion escalated cost, cost of what we would spend over the period of construction. The good news, and you kind of see the chart here on the side, the good news is that federal and state funds on day one are contributing $2.5 billion. right so they're making a cash contribution they are not participating in financing this reservoir but they are by making that day one up front two point five billion dollar contribution they're reducing the amount of money that we all have to spend to participate down to six point nine billion right so think of it we're going out to buy a nine point four billion dollar house and we gotta You know, we got a rich aunt and uncle who just showed up with $2.5 billion and said, here, let me throw this down for you, and you don't have to have as big of a mortgage. So I hate to say that this project is on sale, because these numbers are far too big to talk about sales. But it is one of the unique... things about this project that state and federal funding is lowering the price for participants in the project because they see the value, they see the benefit from the project. They also get water supply out of the project to use for environmental benefits, fish flows, et cetera. So they are getting something for their contribution, but they are also helping us. So if you were to basically cash finance this, hand the site's authority a check, it's a $177 million capital project for the city of American Canyon. That's the amount of... debt, the cost of the project, that proportion, that share that you're having to pay of the 6.9 billion. And if anybody's crunching numbers on their calculator and they're going, well, you said 1.8% is what our share is. That's your share of storage. But because the state and federal folks aren't participating in financing, our participant share for that 1.8% of storage is really about 2.56% of the debt service. So I just want to make sure. It's a little confusing and a lot of percentages and numbers to look at, but that $177 million is about 2.56% of the $6.9 billion. So over a 40-year period, you're financing this using a variety of WIFIA funds, revenue bonds, et cetera. Overall, payments are projected to be around $10.8 million a year. That comes up to be about $436 million invested over that 40-year period of financing. In addition to the financing costs, there will be O&M expenses, renewal and replacement expenses as we move forward in the project. Those are still being developed. They're a little bit, it's hard to plug them in at this point because they're kind of up and down. But as we move forward with an offer, from sites reservoir to participate, I think we'll have to merge those into the model as we go forward. And as Jason mentioned, certainly this is investing in a capital project that has a useful life of easily 200 years. None of our pipelines, our treatment plants don't have that kind of useful life. So you're investing in a big solid project that's gonna be here for a long, long time. So as you're talking about financing, obviously this is a new expense to your water fund, this $10.8 million. It is capitalized interest, so the payments don't start until out in 2033. That increases the debt financing a little bit, but it gives uh it i think most folks who are participating are probably going to go with that financing option because it gives them an option to figure out how how do we absorb this new expense into our water fund so you absorb that obviously if your expenses go up by 10.8 you've got to figure out a way for your revenue to to go up right um and and I kind of look at revenue as two things. One of them, obviously, is the water sales side of things. You're in the business of selling water in your water fund. That's what you do, right? And so you sell that to existing customers and to new customers. And so revenue increases there is partly the amount you're selling. A lot of new customers come on board. That's very valuable over time. Very large customers replace, you know, triple the amount of water that Coca-Cola used maybe. That is new revenue to your fund. You know, the other way you do it, obviously, is through rate increases and the amount you charge for each unit of water that you sell both to existing customers and to new. Revenue also comes from other things that are really non-water sales. So developer fees, your capacity fee that you charge developers on the water side is a potential revenue stream for this type of a project. It makes complete sense. You're building capacity into your system and having new development pay into that makes complete sense. you can, I'm gonna skip the second bullet real quickly, but you can also sell excess water. So not only from this project, Sites Water, but I know you've been selling some of your excess state water project allocation. So that's additional what I call non-rate revenue that you can use towards a project like this. And certainly the piece about selling excess sites water is extremely valuable over time. And as the project starts producing water, but you don't start getting that until 2034 plus, right? Depending on how long it takes to fill. The other way to do revenue, and you kind of heard it as part of your finance director's report on the funds, reducing expenses, whether you just manage a more efficient operation, whether you defer some capital projects, whether you right-size your capital projects and Schedule them out a little bit differently that Reducing an expense is is the same thing using is reduced as bringing in a little bit more revenue So I think it's important to think about that. These are all the levers that The council will have kind of on your control panel to figure out. How do we absorb this these new this new? expense of a project So We put together a very high level model of what the next 20 years might look like and what percentage increase in revenue needs to occur. And I think it's important that we talk about increase in revenue because increases in revenue is not just raising rates. As I mentioned in this last slide, there's a lot of other options to bring in revenue. So we just, we're not talking about, this is not a rate study that we did. It's really just modeling, how do we absorb the costs of a project like this? So we looked out for 20 years, used your recently adopted 2027 budget as the base. right, for the O&M expenses. And then everything out those 20 years will escalate up by an inflation factor that we'll get to. Simply plugged in a rate-funded CIP of $1.5 million starting in 2028. That was, it's a little less than some years, what you've spent on rate-funded CIP, it's a little more than some years. but we had to start somewhere obviously that that's one of the levers you can pull going forward that number can change and go up and down based on your system needs uh... and then obviously you know an ugly word inflation right we have to we have to account for that and so we plugged in inflation factors for the key expenditure items uh... we use three percent for all almost all of the the expenses other than uh... water purchases uh... i've certainly seen over the years You know while in some years because you use less water you save some money on say water project purchases or Vallejo purchases and often see state water projects costs go up you know maybe more than three percent in some years particularly as that system ages I would expect state water projects cost to go up so we used five percent as the as the inflation factor there for your reserves I started off with the reserves that your finance director mentioned in the last presentation it's about 4.6 to 5 million dollars a year is your reserves in your water fund now and I simply escalated that by 3% per year to kind of keep up with expenses. Once again, that's another lever you pull as part of your rate study process. And then finally for water sales, you're gonna hear in your urban water management plan next that looking forward, projected increases in new customers coming on, right, increases your water sales by about 0.54% per year. And so I simply use that so we're consistent with urban water management plan that you're gonna look at next. And then started, once again, with the known fund balance of 10.6 million, as you heard in Jim's presentation. So that's where we started in the model. And then I don't want to... I'm not going to show this chart with all these actual numbers, but I think it's important you understand kind of the process behind the model. And so what this chart is showing in the blue bars is your water fund balance. That's your total cash in the water fund after revenues and expenses occur each year. The orange line is your reserves, your target reserve going up 3% per year. As we run the model to set the amount of income we need to bring, we know that payments for sites starts out here in 2033. It's really hard to absorb $11 million a year in one year, so you start saving money. That's why you see the fund balance start to go up. the, right, you start to see that we're saving some money as we prepare for this new expense to hit in 2033. That expense hits, obviously, right, we're still bringing in some income and we're increasing our income, but we're also pulling some money out of the savings account. and and Allowing, you know the income to come in over a longer period of time in order to afford this, you know And then really after you get out about ten years or so, it's really just maintaining your reserves right once you absorb this huge new project and then you keep up obviously with the O&M and the renewal and replacement costs as those are projected from year to year, so this is the This is what we did in the back end of the model to set kind of some of the charts you're going to see here going forward. So I thought it was important to start with kind of a baseline, no sites. If you don't do anything, and all these charts, if you'll notice, start out in 2028. So it's a few years in the future, right? And it's simply looking, as I said, revenues and expenditures that are coming in. and it's looking at the annual revenue increases that would be required in order to keep meeting your financial reserve targets. So you see your base, no sites, you have a few years where five percent extra revenue is having to come in that allows you to catch up maybe if your fund balance has gone down a little bit over you know in twenty six or in twenty seven and twenty eight uh... but you quickly get down to the kind of the three percent base and you're gonna see all these charts all converge you know out there around year eight to ten at three to two percent and you're simply maintaining you know uh... All things being equal, you don't have a big capital project show up or something that you're keeping your reserves funded and you're keeping up with inflation, basically. So this is the base. This is no sites. I think it's important to kind of compare to what sites means. So if... to absorb that big debt service for sites, clearly the base number goes up to this blue line. It's a large amount of revenue to derive and it would mean on the order of 12% increased revenue in the early years, slowly, as I said, moving down after about 10 years into just that maintain inflation. So that's what it takes to bring in revenue year after year to increase the amount of money coming into your water fund. And this is for the full sites, the full 4,000 acre feet that you're currently participating at. uh... and as i mentioned there's other revenue that you come in so we kind of wanted to see a what if what if a million dollars came in here to hear through either you know some deferral of cip some sale of some state water project water in early years some uh... you know sale of of of sites water in the out years and you see it makes a little bit of a difference uh... you know one percent difference it it it helps to lower the costs or the amount of revenue that needs to come into the fund. We also thought it would be important to look at and say, What if what if we reduced the 4,000 acre feet right? What if instead of a 12,000 or a 25,000 acre foot reservoir? You know we had half of that a twelve thousand five hundred acre foot reservoir once again It's much larger than the city of Saint Elena has So maybe what if we had to right-size this so we looked at what we call the half sites scenario and so that's this green line and now on the chart. It still includes bringing in that $1 million a year in revenue because I think that's something you would absolutely be looking to do, particularly when the project comes on board. And you see right-sizing it maybe, if that's what you need to call it, or reducing it in half certainly lowers the amount of revenue that needs to come in from year to year. So that, my next slide is the last slide. And so this is really the visual of kind of what sites means at a very high level. Once again, not a rate study, not the exact because these numbers are moving a little bit, but this is the ballpark that we need to be in to move this project forward for the community. So finally, what are the next steps? We expect in September to receive what's called the Program Baseline Report. uh... which is uh... a summary if you will of everything that this project brings to the table for participant uh... and and it's uh... you know the portfolio of the project to say are you ready to invest and that's what this resolution resolution offer capacity is going out to those 30 participants to say, are you ready to invest? I think it's in that timeframe that we'll have to make some decisions around, is it 4,000 or 2,000 acre feet? Or is it something else? as we move forward. By December, I expect we will need to say yes or no and be ready to sign what is called the benefits and obligation agreement to sign up and be part of the project going forward. And then as I mentioned as early as early 2027 a groundbreaking on that project So and and obviously thinking about some additional community outreach and what needs to happen over the next few months As we move forward is also something that's on the radar for us So with that I think I am done chatting You've probably heard enough.

Thank you, Phil. I appreciate the presentation, and I appreciate the work that's gone into bringing this forward. From my perspective, I would make sure that we're looking at this through the lens of, you know, like long-term benefit. transparency and the responsibility to our residents here in American Canyon. I have two clarified questions that I like to have before I open up the rest of the council. One, during the periods when the water is not being transferred in those pipes, do those pipes remain full or unfull? If they're full, is the volume containing within those pipelines considered part of the system overall capacity of what we're storing?

Per the water rights, water is only stored in Sites Reservoir. And water has to physically move into Sites Reservoir before it can be diverted for use. So you can't be diverting from the Sacramento River and releasing back to the Sacramento River at the same time. So diversion season, it's diverting. That's the winter months primarily. And then when they're not diverting, they'll be able to release water. So any of the water in the Tehama Colusa Canal, the Dundagan Pipeline, the North Bay Aqueduct, that's either water that's being diverted or being delivered to a customer and released. So as soon as it leaves the reservoir, your bathtub goes down a little bit. AND THEY'VE MADE THE DELIVERY AS IT LEAVES THE RESERVOIR. AND THEN YOU HAVE TO WAIT FOR THAT STORAGE TO COME BACK THROUGH A DIVERSION.

THANK YOU, PHIL. AND FOR THE RECORD, I'M GLAD THAT WE'RE PART OF THIS PROJECT. CLARIFYING QUESTIONS, COUNCIL MEMBER WARRELL?

YEAH, JUST ONE CLARIFYING QUESTION. WE HEAR A LOT ABOUT THE DIVERTING WATER IN HIGH WATER YEARS OR HIGH RAIN YEARS FROM THE SACRAMENTO RIVER. In the readings, and I've never really actually seen this anywhere in sites, maybe the project managers, have they talked about actual rain falling down on sites and capturing water as well, and what they estimated that to be?

That is a factor in their modeling, and so is evaporation, which will be significant from a reservoir of this size. So that is factored into the overall how storage goes up and down. As we all get our proportional share of diversions, we also get the proportional share of rain, and we lose the proportional share of evaporation.

Yeah, but I imagine in a super wet year, that reservoir could fill up on its own.

I would doubt it. No, it does take diversions, but in a super wet year, it could fill up in one year. And they've looked at it. We've had some super big years of a lot of water at one time that the river can't handle. Diverting that water would have filled Sites Reservoir in one of those years. Okay. And may have helped with this is also helps with flood control downstream.

Yeah, I have some other comments, but I'll save that after a public comment Thanks mayor Yes, a couple of things.

Thank you for the report And it is very illuminating and I do think This is the kind of issue you think about in terms of hundreds of years not not decades Couple of comments one just to you know to assist me in freaking out the rate projections those are Percentage increases each year, right? So it's like under the 4,000 acre scenario It's a 12% increase in your water rate each year for four or five years or am I reading it wrong?

I'm gonna just go back to it. So you can I'll leave the I'll leave the big summary. Yes, it is, and it's really not rate increases, it's increases in revenue, and that revenue can come from a variety of things if you choose to. And so yes, in year one it is, if you're looking at the blue line, in year one it is a 12% increase, and in year two it's a 12% increase. And so you do have to ramp up to afford this level of debt service.

This is true. So that's a little scary. The second concern which hasn't been discussed much is the real Achilles heel for us is that delivery through Barker, SLU and all of that which has nothing to do with sites. It's just the Achilles heel that we live with. So there's only so much we can get through the pipeline. And that's another major sites-like project to redo that. But it's something that we also have to look at, or I guess we have to be concerned with. At some point in time, are we gonna be trying to push more water through that pipe than we have the capacity? Meaning we may have the supply at sites, we just can't get it physically to us. And is there any modeling on that issue?

It's part of the topic even in the urban water management plan, the next item. You know, we have a certain capacity of that pipeline. Our partners aren't always using that pipeline to its capacity. Right. Okay. But, you know, we're, even as you look at the next item, we're not envisioning that our water demand would double or triple. Okay. Right? Okay. To the extent, what may happen is that what's going through the North Bay Aqueduct for American Canyon's benefit isn't state water project water anymore. It's now more of its sites water. It's called non-project water. We do this already with a VLAO appropriative right that we have. We have an agreement with the state for non-project water. So this is another form of non-project water. So that may occur. It's not more water. It's different color, different flavor. Okay. And the other thing that may happen is we may sell some water so any of the cities in the North Bay aqueduct for example that may be wanted to also put some non-profit water in there because for example, they're like various of water might be might be reduced or their state water project allocations might not be what they're what they're hoping for we could then sell that that water would take up the physical place in that pipeline is just you know accounted for differently because it would be our sales of sites to them. still occupying the same pipeline. Now there are operational issues and there are life cycle issues and there's a project that's on the books to address that as a collective. That's not built in here in all my transparency. But I don't think we're in any danger of having water and having too small of a straw to put it through mainly because we're not trying to suck more through. What we're trying to do is make sure we have something to draw upon and have a place to draw upon in storage.

Good. Then the last comment is the fact that we're only 1.8 percent of the storage has some advantages because if we were 25 or 30 percent of the customer base, what we do or don't do is going to be pretty impactful. But at 2 percent, you might not notice if we go from 4,000 to 2,000. But on the flip side, because apparently this can all be used for anybody in Napa or Solano counties, even though there's not a lot of time to fish or cut bait, so to speak, we could say, look, from our perspective, we only need 2,000. So that's what we want to ramp up for. But that other 2,000, we might reach out to Napa City or to Vallejo or to anybody. and say, I got 2,000 acre feet of water at half the price of what we're doing, is it realistic to be in a position to say, who wants to pick up that piece of the debt service? I know it's realistic, but is it realistic if we have to make a decision in three months?

In that time period, no. We won't have any sort of formal agreements with folks. I think it's more of a... knowing what this commodity is and what it represents. And I meant to kind of lead with this thought, and I'll say it now. You know, this effort is almost, it's really large to think about. And if you are looking at the history of the West and you're looking at the future and you're doing your own research and science and you're thinking, you know what, the world, obviously it changes every day and the climate changes every day. And I think in the future it's going to be more humid. I think we're going to have more tropical kind of landscaping, I think our climate is going to become more moist, and I think water will be more plentiful just naturally, then making a commodity play to store more water maybe runs counterintuitive to that. And then if you also look at the same history and you come to the conclusion, I think things are getting drier, I think water is getting more scarce, I think the value of that commodity is going to increase, then you say, well, maybe investing in storage is a good idea. So this does get to the heart of that kind of conversation. Nobody here today knows what the climate's going to look like in 200 years, despite their best projections. So it's definitely an unknown. But we won't, in the next three months, have a list of customers who are ready to kind of step in our shoes if we needed. But we know that it's a commodity that's going to be valuable. And our unique place, you know, there's I think about a dozen or so of the participants are kind of Sac Valley ag interests. And then the other folks are Southern California or South Bay, Zone 7, for example, all of Silicon Valley. Sorry, Valley Water is all of Silicon Valley. Zone 7 is all Contra Costa County, right? So you have southern East Bay and South Bay, right? Huge, huge economic areas and economic engines. And interestingly, Valley Water actually has a relatively small position at this point, but we know some of their other projects haven't come to fruition. So there seems to be some opportunity even in our region. But Metropolitan Water is the biggest player in this, and that's for the entire Los Angeles region. And so just within the group that's a part of the project, there are huge opportunities to sell and to transfer stakes in various forms and fashion. And so I think that is a good reminder of the importance of being in the conversation. I'll also kind of point out that there's a lot of really smart people working on this project and have been for a long time. Folks, we're actually the only entity with Arena housing obligation. All the other folks are water district utility providers. The city of Sacramento is in it, but they're as a non-participant sort of for the environmental benefits. And there are some Sac Valley folks, but mostly water districts, farming districts, we're the only entity with the housing. And we actually made some of this point during the water right process because they had kind of gotten lost. The state frequently telling cities and counties that they have a housing requirement and then another part of the state saying, oh, we're going to drag our feet on the water right. And so we kind of made the point in our comment letters is you don't get to do both. You can either assure water supplies and require housing, or if you aren't going to do your job with the water right, then stop making people provide housing. And we gave them a long list, both of our housing obligations and all of the people, all of the places in our place of use, Solano County and Napa County as examples, but also Zone 7, Silicon Valley, also, sorry, Zone 7 is Contra Costa County and Valley Water for the South Bay, is to kind of make that sort of obvious point to them that they were missing. So I say that to say there's, like I said, a lot of really smart people working on this, modeling it, the details of it. These are water districts and professional organizations with dozens of people in their water resource department and many of them working just on this and their participant in this. So we don't have a water resource department with 12 water resource engineers working on the details of this. We're able to, to your point, the 1.8% benefit, we're able to take benefit of all those really smart people, really smart lawyers, really smart folks, all on the same team, all working collaboratively together, but not also having to do that, not also having to, if we built our own reservoir, we would have to step up with our own department and do all those things just to manage and operate a little old rubber store in the canyon. So I think that's one of the tangential benefits of being a small player in a really great big effort. So hopefully that answers your question.

I appreciate that. I think for me the big challenge is saying, okay, we started at 4,000. 2,000 sounds like it's a little more economical. I mean, a 7% increase will get people ticked off, but 12% they may throw things at you. So it's kind of like I'm more comfortable at the 2,000 acre feet level And I'm just trying to figure out what can we do to, frankly, to be of service to our sister jurisdiction saying, like you said, Napa City, if you're that envious, I can make you a deal kind of thing.

Would add to it Jason said I think no matter what your percentage is Being part of the project I think is an important piece Because that is where the this project from day one has has said we need the water in California We need to use this water, you know, and we need to maximize the use of this reservoir so being a participant allows you to work with other participants, and so maybe you can't go to one of those other entities in the next three months, but over the next three years, you can certainly, having a seat at the table, you can certainly start to look at ways to leverage other participants' water, maybe for use to some of your neighbors.

Yeah, just for example, THE SOLANO PROJECT, LAKE BERRIESA, WHILE THE CITY OF NAPA MADE GREAT DECISIONS WAY BACK WHEN TO DO HENNESSEY, COUNTYWIDE NAPA DECIDED NOT TO PARTICIPATE IN LAKE BERRIESA. PROBABLY NOT THE GREATEST DECISION NOW AS THINGS ARE PLAYING OUT. WE'RE TRYING TO AVOID THAT. BUT SOLANO DID. BUT THEY'RE RUNNING INTO SOME CHALLENGES. THE STATE WATER BOARD HAS DECIDED THAT THEY'RE GOING TO RADICALLY CHANGE THE AMOUNT OF WATER AVAILABLE TO FOLKS IN THE SOLANO PROJECT. THAT'S STILL GOING THROUGH A REGULATORY PROCESS. IT'S NOT FINAL. But they're definitely alarmed at what they're hearing from the state on that, notwithstanding housing obligations, notwithstanding they're hearing some really, really scary things from the state about, you know, required flows that they have to maintain and disrupting what they thought was a water supply. And so these are the very same folks who might then be available to avail this, you know, of us. Their issue with the, you know, they would prefer not to, right? They would prefer to just have the supplies they've already bought into. The state may take them from them. THAT'S NOT GOING TO GET RESOLVED IN THE NEXT THREE MONTHS, BUT WE KNOW IT'S COMING DOWN THE PIKE, AND WE HOPE THAT THEY DON'T HAVE TO DEAL WITH THAT. BUT IF THEY DO, THIS BECOMES A POTENTIAL OPTION FOR THEM, AND WE CAN HAVE THAT CONVERSATION. IT'S JUST NOT GOING TO HAPPEN BEFORE WE HAVE TO MAKE A DECISION.

OKAY. THANKS. COUNCILMEMBER ORL. YEAH, I WAS TRYING TO KEEP IT TO CLARIFYING QUESTIONS, BUT IT TURNED INTO A DISCUSSION, AND NOW I HAVE TO JUMP IN. LISTEN, ONE OF THE FIRST, WHEN I WAS APPOINTED TO COUNCIL, ONE OF THE FIRST BIG DECISIONS I SUGGESTED WAS I ASKED THE QUESTION, HOW MANY ACRE FEET DO WE NEED AT FULL BUILDOUT, WHICH IS BASICALLY WATSON RANCH AND THE GREEN ISLAND AREA. it was i think we said 3 200 feet uh um per year acre feet per year um what are you using now jason um or maybe last year was about 2200 2200 right and we're continuing to grow um and you know if we build out green island who knows what's going to go in there maybe we'll get coca-cola pepsi and Snapple, I don't know what will show up, but a lot of water will be used, right? And we're preparing for that. In 2017, I'd like to remind this council, I'd like to remind the public, was basically the end of a six-year drought. We don't know the future. Maybe we become a tropical island in the future with rain all the time, or we become a drier and drier climate, right? And what I had recommended at that time was to prepare and own something that we can control because we had nothing to control, right? DURING THAT DROUGHT TIME FRAME, WE WERE GIVEN 10% OF STATE WATER PROJECT RIGHTS. BASICALLY NO WATER WHATSOEVER COMING TO US, AND IT WAS ALL HANDED OUT BY THE STATE WATER PROJECT. san american canyon you don't have senior rights but you know who had senior rights the farmers in the central valley who are also the same water districts fighting for more water at the sites reservoir and making those investments and i said at the time you know Whiskey's made for drinking, water's made for fighting. I continue to believe that we have to invest in water rights. And I think what the public doesn't know is that if we have extra water, we can sell that water to other agencies that need it. A FARMER IS GOING TO NEED THAT WATER IN THE CENTRAL VALLEY IF WE HAVE THE CAPACITY DURING A DROUGHT YEAR. I DON'T WANT TO BE IN NAPA COUNTY NOT WANTING WATER FROM LAKE BARRIESA BECAUSE THEY WANT TO TAKE PART IN IT. You know, water comes down into the valley and we got the Napa River. And we've never had this opportunity before to own water. There was a study that we did before this council sort of existed and constituted as it is today. We were looking at Vallejo's dams and waters and things of that nature. And this came about as... SOMETHING THAT WE COULD TAKE A PART OF, AND I SEE REAL VALUE IN OBVIOUSLY PARTICIPATING IN IT, BUT ALSO TRYING TO FIGURE OUT A WAY TO GET CONTROL AS MUCH WATER AS WE CAN. I GOT TO SHARE A LITTLE ANTIDOTE. IN JULY, I WENT ON A BACK COUNTRY TRIP TO THE EASTERN SIERRA, AND I WAS IN BISHOP, CALIFORNIA. A RESIDENT OUT HERE, MR. MARQUEZ, IS FROM THAT AREA. AND YOU KNOW, IF YOU KNOW THAT HISTORY AREA, BASICALLY L.A. TOOK ALL THE WATER FROM THE OWENS VALLEY ON THE EAST SIDE. AND THE PLACE THAT I WAS CAMPING WAS UP IN HORTON LAKES. IT WAS EIGHT MILES, JUST FOUR-WHEEL IN AND THEN LIKE FOUR MILES OF HIKING UP THAT HILL. BUT IN BETWEEN HORTON LAKES AT THE VALLEY AND BISHOP WAS LAND OWNED BY THE L.A. DEPARTMENT OF WATER AND POWER. And they basically controlled all those streams up there to populate a city of 10 million people. There's all kinds of wrongs in that. But for the city of LA, they have water rights. It is that important.

Thank you, Council Member Oro. If there's no more questions, I'll open it up for public comment for item number 11. And Phil, if you take a seat, take a load off your feet for a minute. Madam Clerk, do we have some?

I have no speaker cards and no hands raised on mine.

Okay, so we'll go with the hands raised inside the chamber. And you're closest to the mic, Hugh, so you go first.

Thank you for your presentation. The only question I have is you talked about when the river is running. And with the droughts that we've had, Shasta and that dam there is at 63% full at this point. I know it's during winter times that this is supposed to occur. If the rain does not come in and the lake, it cannot be pumped in, are there limitations to years? I know we have 1.8% of it, but if the lake can't be pumped in with water, will the group, all 30 munis be let know that this is now a limited share you'll get? And that's just a question I have.

Yeah, I can answer that, Hugh. So the project looked at the recorded history that we had, paying special emphasis to knowing what the hydrology was from those different rain events. And even in the worst-case years, 2014 and some of the more recent years, there was still rainfall, there were still events, and there were still diversion opportunities from the Sacramento River. And so that didn't mean it would fill every year. But there were still diversion opportunities during those time periods. And so one of the unique things about the project, one of them, the existing facilities from the local interest, the local districts up there, they farm. They farm rice. They farm rice and even other crops during the summertime. Sacramento River is high during the winter time and in the winter time these farmers aren't doing anything and though it's literally ditches and pipelines and canals there that aren't literally doing anything like they're it's in their off season and so that makes you know part of their interest is you know as as partners now they're going to have people you know helping pay for some of that O&M right these are facilities that they farm that have a 12-month maintenance obligation and an active agricultural use and six months out of the year and so You know, they need work, and those facilities will need to upgrade over time. And so they now have a customer base during their off-season when someone's going to be using those facilities when no one else is using them. And they're part of the project. So they're using their existing facilities to put water into the project that they'll turn around and use for their own purposes. And so they see that benefit of it. But their existing diversion facilities from the Sacramento River in two locations, we don't have to build any of those new facilities. They already exist. And then as you go down the Colusa Basin drain, the same thing. puts it back into the Sacramento River. So that's a unique aspect of the project from an affordability perspective. Because if you had to build all that extra stuff too on top of that, I mean, obviously that price tag would be going up quite a bit. So utilizing, it's also an interesting dynamic, a local control dynamic. And so The locals will still very much be in control, but they're also giving a little bit of that control now through different agreements and use of these facilities and these investors that they've brought in across the state. So it's an interesting dynamic to see play out, but it's all done through, like I said, very, very smart, very, I don't know, cutting edge is really the way that's coming to mind of all these water purveyors with a common interest. mostly projects of this scale are done by the federal government or done by the state government, right? DWR built Oroville, right? And the Bureau, right, built Shasta, right? So it's these big agencies that come and do and then just hand out water and then they change what they're going to hand out based on some rules. In this case, these are locals that have gotten together. They've taken on investors, all of which are local level. It's cities, it's counties, it's water agencies. And now we have also taken on the state partner and the federal partner, but they're partners. They're not like overlords or overseeing in the way that they are with the State Water Project or the Bureau of Reclamation, Central Valley Project, for example. So I think that's different. And what they're also doing, the state and federal participation isn't for new supplies for them. It's operational flexibility for them. So for their existing Shasta, their existing Oroville, they want to do those releases to their customers during a certain time of year where they can also have environmental benefits. And so by parking water in sites, They can release for their customers from sites and then they can release environmental water from Shasta and Orville because that water from the snow is colder and the agronomist fish like the cold water pools. They like the much, the lower temperature water. So the releases coming out of Orville and Shasta will be more geared towards environmental and agronomist fish. The releases from sites are going to be much more towards M&I users. It's not more on a numerical basis. It's better timing and better flexibility. And so that's what they're interested in. That's why they're paying cash up front to be able to then operate their systems with some more flexibility for all of their other customers, some of which who are participants in the project, which creates an interesting dynamic as well. So really true partnerships.

Thank you for that. And thank you for that question, Hugh. Gary, did you still have a question?

Thank you.

Okay, this will be my last time, I promise. But I listened with fascination to this project, it is exciting, it sounds good. But what I didn't hear, and which concerns me, is that there's no mention that the State Water Board capped the request from the project down from 1.5 million acre feet to 986,000 acre feet. Now there's a decision, there's a revised draft coming in September, there'll be a final vote in November. But it should be made public, it should be made that this council should be aware that the impact upon ROI and upon availability could be adversely impacted by any lowered availability. If the draw is reduced to under a million, And there are a number of environmental agencies and oppositions to Governor Newsom who are requesting that there are rights for salmon fishing, for Native American sacred land and so forth. This isn't a simple bathtub. This is far more complex and the simplification is deeply concerning and I would like to put on the record for the benefit of this council, that we are in a state of flux. We don't know what the availability will be, and we don't know if the value of the investment is reduced by the cap. It could go down by a third or 50% in some estimates. And I think that it is the responsible thing to do to mention for the benefit of everyone in this room, that this project could have the plug pulled and we could lose a third of our water or more. We don't know. But I just want to share that for the record. It should have been shared, and it wasn't. Thank you.

Thank you, Gary.

Merritt, just a couple of follow-ups to that. It's great points that Gary makes. One of the slides talks about the water board and the permit, and he's exactly right. The water board had an initial draft decision It was about a 50% reduction. It's pretty complicated, depending on some of the permit terms. And that's among the reasons that we're in this schedule that we are. I don't think the administrative hearing officer really understood the draft decision and the proposed, the initial draft decision, the reduction. Clearly, if this project can only have half of the water that the investors need, nobody's doing this project. That's just kind of a full stop. Like, okay, project's over. I don't think they totally understood that. I think there was an attempt to try and make everybody happy. And so you piece some things out and you give here, give here without understanding the totality of it. And so the project developed additional data and there was additional testimony in front of the hearing officer explaining all of that and the ramifications of it. And we're due back in early September with the draft decision. And there is the very real possibility that they don't change the draft decision. There's a very real possibility that they make reductions or whatever, and we're going to have to come back and have that interaction, right? If this project is expensive, if you get everything you need, if you're getting 50% of what you need, then it's actually an easy conversation because it's not going to be affordable for anyone on the project. So we very much don't know how the state water board proceedings are. Right now, the hearing officer will make a revised draft decision, and then it goes to the water board. The water board can actually do whatever it wants. It can take the hearing officer's opinion, adopt it. It could increase. It could decrease it. Theirs is the final opinion. And so we won't know until they do, the Water Board does their final action in the first part of November, what the final permit actually looks like. We were supposed to know that a year ago. We were supposed to know basically December, January timeframe. We were supposed to know what the final decision is. That has played out longer than anyone else wants. It's longer than what the administration wants. We're going to see what it plays out. But there is the very real possibility that a revised draft decision doesn't work economically for anyone. And I appreciate Gary bringing up that point because that's out there. We're not asking the council or anyone to make a commitment tonight based on what that permit's going to do. This is an informational item. We won't be taking action based on that uncertainty. I won't be recommending to you, oh, let's sign this contract. I still don't know what the draft permit is. When we come back to you for action, we will be able to tell you we have a permit. It means this. It's different than what we thought, or it's exactly what we thought. We'll have that conversation. We won't be asking the council to sign, and nobody will be asking their legislative bodies to sign on something where we still don't know what the draft permit says.

Thank you. Thank you for that explanation, and Gary, thank you for that question. You know, like we mentioned earlier, it's about being transparent, and that was actually a great question to make that transparency obvious. We'll close public comment on item 11, return to the council for any additional discussion. This is a read-in file, as the city manager mentioned, and vice mayor.

And I just wanted to follow up. I do appreciate the comment and in fairness over the months the manager and I have had discussions and so forth. So we were aware that this water board could do crazy things. The only real point in all of this is we don't have to make a decision until we know whether they made a good one or a bad one. So right now it's kind of a hypothetical. To me the real issue is do we want to stay with sites and I would say yes. And then the real debate is do we want to stay at the 4,000 level or the 2,000 level And I struggle over that, not so much, well, mainly because of an economics. It'd be nice if we knew what was going on, so we're going to have to make a commitment. And arguably, we could stick with 4,000, recognizing that we're a small fish, so it's a lot easier to sell our 2,000-acre feed to somebody and not be stuck with those bills forever. But for me, I think that's the real nut to break. Do we stay with four? Do we go to two? And then start talking about, and how do we fund it all? But staying with sites is clearly, in my mind, a no-brainer. It is, as Councilmember Oro said, it gives us some real ownership of storage, which we have never had either as a city or even as a water district before incorporation. So that's where I'm at. And I appreciate all the discussion. It is very exciting. Regardless of how it plays out, I think this project is very good, not just for urban development, but for environmental considerations as well. And I'm glad we're part of it.

I agree with you, Vice Mayor, and thank you for that. And we're done with this. Phil or Bron, appreciate your presentation and the work you put into this. And, again, co-presenting with our city manager, I appreciate the both of you. uh... with that will move on to our third business item which is item uh... ch ch ch item number twelve the urban water management plan update and i believe that's going to be our guy norman woods again our assistant on backer pitching on this one right here so come in as norm gets settled uh... do you have a presentation or is it just the oral report i can't recall

THIS IS THE THIRD IN A SERIES OF WATER THEMED ITEMS TONIGHT. THIS LOOKS AT THE WHOLE SUPPLY PICTURE AND GETS INTO THE NUTS AND BOLTS OF OUR PORTFOLIO OF WATER SUPPLIES. just one important caveat. We had a big old conversation on sites reservoir. This plan does not include sites reservoir. So the reason for that is because this plan is one of those state required things. They pass a law every five years and they write a formula for every one of these plans. If you have more than 3000 connections, you've got to put one together and you have to follow their formula. There isn't a ton of discretion about how to think about this because they collect all these plans, they put them in a database and then they do some broad statewide reporting. So this is for their purpose. We use it too. But for the purposes of sites, we talk about it. There's a narrative in here. But clearly, we haven't made a good decision yet on sites. So to say, oh, we're counting on sites for X amount of water in this plan would be premature. And so it's not in here. But the driver of need for sites or certain conditions when it would be is in here And so that's that's what the topic is about and I'll turn it over to norm because he looks like he's ready.

Oh Thanks, Jason Good evening Mayor City Council members once again in the community. I'm gonna be making a presentation on the 2025 urban water master plan and Uh, this is a real high overview of the urban water master plan. Uh, it's been here at city hall, I think maybe for about a month, three weeks to a month already for public review, uh, also on the city webpage. So, um, the, this should already be out there already. So, um, the presentation on the 2025 urban water management plan, as well as a demonstration of the reduced Delta reliance abundance, what I'm going to be presenting, um, An overview of the agenda is I'm gonna start by describing the urban water management purpose and objectives and the new requirements of the 2025 urban water management plan. I'll review the city's outreach process and activities during preparation of the 2025 urban water management plan and go over some of the results and including the population and demands of the projects. I mean, sorry, projections and supply reliability. additionally I'll be describing the city's water shortage contingency plan which is included in the city's municipal water code municipal code water conservation plan chapter 13 point 4 and once again demonstration of the reduced Delta reliance appendix urban water management purpose and objectives of Jason kind of referenced it there a little bit is it's required that all urban water suppliers servicing more than 3,000 or more connections and supplying more or supplying more than 3,000 acre feet have to have an urban water master plan the city of American Canyon has over 3,000 connections I mean maybe serves over Not over 3,000 acre feet. It once did, but it has over 3,000 connections. Um, it must be served by the, it must be completed every five years by the city. And sorry about that. And, uh, the purpose of the water mesh plan is to maintain efficient use of the urban water supplies. uh... promote conservation programs and policies uh... confirm and the water supplies are available for future use and beneficial use and provide a mechanism for uh... response during water drought conditions uh... outreach activities if you look at the diagram diagram didn't didn't quite come up uh... they're supposed to be a There we go, diagram right there. The urban water management process includes reviewing historic and projected demands and supplies with assessment of supply and reliability under various hydraulic conditions, normal, single-year, and multi-year scenarios. This includes supply reliability assessment for the upcoming five-year period. In addition, the water shortage contingency plan is summarized within the urban water management plan. Overall, the state law dictates the content and format of the urban water management plan, which means that we're not making this up. Once the report is compiled, it goes through a public review and adoption process. When it is completed, the report is submitted to the Department of Water Resources. Throughout the process, outreach is performed consistently. Okay. And I move this new requirements of the new requirements of the 2025 urban water management plan. The following are the sorry about that. OK, the new requirements of the water management plan, we're making conservation a California way of life. As you can see effective January 1st this regulation set annual urban water objectives conservation is already way life here in the City of American Canyon water loss control regulations for urban retail water suppliers to develop standards for minimizing water leaks and and Became effective in 2023 monthly water conservation reports for which we submit since October 1st of 2020 and prohibition of non-function turf and irrigation and outreach process and activities Every urban water supplier required to pair, uh, a plan. And it has to at least, uh, 60 days prior to the public hearing of the plan notify any city or County within, uh, the supplier that the supplier, uh, supplies water to our lawyers were signed by our, uh, public works director, Erica in March of 20, uh, March 23rd of 2026. So it's been more than 60 days. Uh, the city provided those 60 notifications to the listed agencies. You see up here, the urban water managed plan. process was ongoing. A notice was also provided for the current public hearing and tentative adoption for these agencies in the Napa Valley Register as well. The population demand and projections that came out of this. The city's potable water service is approximately 30 square miles. It encompasses the city limits and its sphere of influence as well and extends from the Napa River to the west of the Napa Solano County. County line to the east and from the Napa Solano County line to south to Saskal Ridge, north of the airport. The city water supply is purchased or imported water sources, mainly state water project water purchase from the Napa County flood control and water conservation in the city of Vallejo. The city owns and maintains and operates a water treatment plant, which has a maximum capacity of five MGD and average daily approximately of two MGD. Treated water is delivered via gravity, two and a half million gallons to a water storage tank located at the water treatment plant and flows from the tank to the distribution system. The pot of water distribution system consists of approximately 100 miles of water mains, three storage tanks, and two booster pumps. Looking at the population growth and figure 3.1 on the table 3.1 it includes the total population within the city limits and outside the city limits and Unincorporated Napa County less than 1% of the city's single-family residential customers are located outside the city limits the city has a population of over 22,000 in the 2025 according to United States Census The 2025 estimated also includes a population of approximately 81 people based on the number of residential accounts outside the city limits, 34, and a number of persons per household that are incorporated in Napa County. So we're already serving people outside of our city line. The 2030 and 2040 projected populations at Table 3.1, you're looking at them, are per the general plan. So these are tethered together with our general plan. These aren't numbers that we run rogue. We wanted to make sure that they were tied together, that these documents have unification and they're aligned. Based on the 2030 and 40 population projection, this results is a population increase approximately 725 every five years. For 2035, 2040, and 2050, it was assumed that the population of Great Throat would remain the same, approximately 3% every five years. For 2030 to 2050, it was assumed through the general plan, population projections include the population outside the city limits as well, so it would grow the same way. uh... the existing and projected demand uh... examining those the loss was calculated as a difference between total water produced and total water consumed one acre foot equals slightly over three hundred twenty five thousand gallons uh... water demands served the city are primarily residential including single-family residential, multifamily residential, commercial, industrial, and landscape irrigation. The 2025 demand was, as Jason mentioned earlier, over 2,200 acre-feet, and a projected 2050 demand is at 2,600 acre-feet. The distribution system water losses, the real water losses are the physical losses from the water distribution system and the supplier storage facilities up to the point of the consumer consumption. The city's distribution system losses are quantified using the AWWA method. That's the American Water Works Association. conducted during water audits. The demand, which I don't want to dive all in there and kill you guys too much on, but the demand projections are based on the following assumptions for the use type, single-family and multi-family residential. The total residential, single-family, multi-family demand was 1,324 acre feet, as you see in Table 4.1. And the estimated population, once again, was over 22,000 for Table 3.1, which we just looked at. The projected population was multiplied by the 2025 residential demand factor, which is 52 gallons per person per day. Each person in the City of American Canyon uses 52 gallons of water per day. And the single family demands were assumed to be 90% of the total residential demand. So our residents use up the bulk of the water beyond our businesses. without cycling all the way down through the commercial, industrial, institutional, the landscape, the agricultural, all those are expected to grow at the same rate, and those rates, say the landscape assumed to remain 2025, potable water, yeah, through 2050. So any questions at the end, I'll answer those about the growth and the assumptions that are being used on that. Supply reliability, sorry about that. Didn't wear my glasses, and I forgot them in the car, so unfortunately, you guys are going to have to grind through this. You're doing fine. You're doing fine. Existing and projected recycled water use, once again, the units are an acre feet. If you look at Table 6.4, the city currently produces and delivers recycled water to meet demands as needed. The city provides recycled water to private customers for landscape irrigation, city-owned facilities for landscape irrigation once again, temporary uses for test control, and construction projects. So we are utilizing our recycled water. Supply reliability assessment. Jump into this real quick. A supply and demand assessment considered the water supply reliability during three water scenarios, average year, which would be a normal year, a single dry year, which would be our worst year, and a five-year consecutive year drought, which would be a continuous five-year, we're limping along trying to get there. in addition to a drought risk assessment from 2026 through 2030. A single dry year is based on 49% of the average supply available, whereas multiple dry years is based on 72% of the average supply available. The city anticipates it can supply all its water demands by purchasing supplemental imported water through existing agreements through the planning horizon of 2050. for all water year scenarios, such as other state water project sources, including dry year water purchase programs, Article 56 carryover, Table A, and the other continued aspects of our portfolio. Some of our assumptions for the water supply would be Table A allotment assumed to be 54%, 5%, and 27% based on each of those scenarios I told you, single year, multi-year, and dry year. There was a whole nother page on this. Jumped in on here. Contracted respectively. The percent of volume available for each water year type is based on long-term average allocation. And That would be 2025 draft state water project final delivery capability determined by the Department of Water Resources and the 2014 allocation. So they used three different years to decide those allocations, 2014, 1987, and 1992 for those average allocations respectively. And then we get into our article 21, our Vallejo permit water, which is assumed to be full contracted volume, 500 acre feet per year from Vallejo. The Vallejo treated assumed to be, once again, full contracted volume of 20, an agreement we have Vallejo, 2,074 acre feet for average year. And to be reduced by 20% for a single dry in consecutive years, water types based on the city of Vallejo's water shortage contingency plan stage two. Um, our drought risk assessment assumptions are table a allotment assumed to be 5%, 5%, 22%, 25%, and 20, 27% of the full contracted volume of the 5,200 acre feet we get. So if we fall, find ourselves in a serious drought situation, you listen to those numbers of what we're actually going to be getting as that ties into. What Phil was talking about, what Jason's talking about of having that sites reservoir there to support us in those drought years. Article 21 assumed to be 242 acre-feet the first year and then unavailable the remaining years with the drought risk assessment assumptions. Vallejo permit assumed to be full contracted volume of 500 acre-feet for all the years, and Vallejo treated water once again assumed to be contracted, 2,074 acre-feet reduced to 20% for all years based on Vallejo's water shortage contingency plan once again. So we do have water resiliency, that's right there, but as Council Member Moore would say, do you have enough water, would be the situation if we find ourself in a drought. Our demand measures, the urban water management will also describe how the city has implemented demand management measures or best management practices, BMPs, that promote and encourage water conservation. The city of American Cane is phenomenal with water conservation. We've done a great job in that area. The city has... Waste prevention ordinances in place, as you can see up there. All the city customers are metered and billed on a monthly basis. The city has increasing tier water rate schedule for single family residential use. These metered water rates consist of fixed meter charge as well as a rate unit based on usage. One unit equals 748 gallons. The city has public education outreach programs in place. The city provides flyers, brochures, information packets, and nice employees who are willing to answer questions that are actually out there in the community. Demand management measures continued. The city prepares annual water audits and assesses managed distribution leaks. Additionally, when a complaint is lodged regarding a potential water leak, the city takes swift action to identify and repair given leaks as warranted. The city has water conservation programs in place. The city also offers rebates for high-efficiency toilets. They're replacing grass with drip-irrigated, low-water-use plants and permeable hardscape. And lastly, the city has implemented several administrative policies for water conservation. For example, the zero-water footprint policy. Our water shortage contingency plan. So diving into that, urban water management plan requires a water shortage contingency plan with specific elements. The city's WSCP is included in the city's municipal code water conservation plan, chapter 13.14. The adoption of the WSCP will be included as an appendix to the 2025 urban water management plan. The WSCP may be amended as needed without amending the 2025 Urban Water Managed Plan and no new requirements since the 2020 Urban Water Managed Plan. So it's the same WSCP and no updates to WSCP since the 2020 Urban Water Managed Plan. uh... required elements uh... the WSAP uh... make sure I didn't kick the ball too far uh... um... oh that I think I just already did that one uh... water reliability analysis annual uh... supply and demand assessments six standard shortage levels which I'll jump into in a second uh... financial consequences and the uh... the other aspects of what it could consist of. It's all the things that you're going to do with your emergency situations when you have water shortages and what levers you actually pull when things are actually triggered, which I'll go into right here. the shortage levels. So the shortage levels of the urban water management table 8.1, the city's water shortage contingency plan details the stages of the action to be taken during a reduction in available water supply. There are six standards as you can look up there. I think it was mentioned earlier, I heard someone say 10% things are triggered before I got in here. So this isn't new to people who are in this room. He said there are six stages and the levels from shortage up to 10% to shortage levels, 6% greater than 50%. Reductions in supply are most frequently associated with drought, which is the number one the number of the number one thing that we have to look out for but could also be a result of flooding major fire emergencies earthquakes regional power outages water contamination and any other that could impact the city's water supply water shortage responses actions could include reduction supply augmentation operational changes and mandatory prohibitions to address shortages levels uh... reducing the uh... delta reliance reducing of reliance uh... as a source water and you should do this by increasing the use of locally controlled and alternative water supplies recycled water be a top of it diversify the city's water polo water portfolio sites the conversation we just had beforehand essentially what you're doing is you give yourself the best option in the most flexibility to be able to navigate tough situations when you have that The Delta, this is by state law in the San Joaquin, as you can see, the Reform Act in 2009 requires local and public agencies to submit written certification to cover actions that they're actually doing to try and address these situations. Cover actions include multi-year water transfers, conveyance facilities, and new diversion that involves transferring water through exporting water from and using water in the Delta so If you tie this to some of the other water legislation that's coming down like groundwater pumping That they're going to start capping and not allowing people to draw water out of the ground Having your own base and having a diverse water portfolio is actually going to just put American Canyon an amazing position when you talk about as you as you look towards the future Reduced delta reliance, expected outcomes. The reduced reliance analysis for demands and supplies result show that the expected outcome and regional self-reliance is an increase in self-reliance in near-term and long-term. The increase in self-reliance is achieved through water efficiency and increased recycled water use. The city of American has done a phenomenal job doing this because the conservation has gone up. You've actually seen a reduction in the potable water that's used. It was mentioned earlier. That is the rub that when you convert to recycled water, you do actually take a hit with your water in terms of your finances. So that Rubik's cube really hasn't really been solved per se, but there are some things we're going to talk about later on that maybe potentially can help that out. uh... the results show that the city is measuredly reducing the reliance on delta improving regional self-reliance based on the percentage of the city's water supplies from the delta watershed and sorry about that i was a little slow on my slides so you guys have to look at that one so going to the next steps of what's next for the city in regards to our urban water management plan uh... You have work with the public to continue to maintain efficient uses of supplies and maintain our conservation goals. Our urban water managed plan and water shortage contingency plan adoption for which is September 15, 2026. We have potentially adopting this of the urban water managed plan and water shortage contingency plan. Submit this report to the Department of Water Resources by the end of 2026. and continue to monitor legislation on whether it be sites or its urban water management plan, water rights, all those things that happen with it. And with that, I'm done and any questions?

You did all that without being able to see it, huh? Thank you for that presentation, Norman. And what I'll do now is open it up for questions from council before opening for public comment. And I will start with you, Vice Mayor.

YES, THANK YOU FOR THE REPORT. SO AS I MENTIONED TO THE MANAGER, I STARTED OFF THINKING THE URBAN WATER MANAGEMENT PLAN IS REALLY KIND OF LIKE A GENERAL PLAN FOR WATER OR A BUDGET FOR WATER. BUT AS YOU BEGIN TO UNDERSTAND IT, IT'S A STATE REQUIRED DOCUMENT. SO SOME OF MY NORMAL ISSUES ABOUT THE POPULATION ESTIMATES AREN'T REALISTIC. I'm okay with because it's the state and they operate like that. But a couple of things. Because of Coca-Cola leaving in 24, 25, the 2025 water use numbers dropped by 200 or 300 acre feet because Coca-Cola left and they were a big player and it left an impact. So the two questions come to mind is, what would the projections have looked like if this was the 2024 version where Coca-Cola was still going on? Because you would have had a higher number, so the projections would have been higher. Did we do any kind of modeling to say, if something Coca-Cola-like showed up in the next year or two, would we suddenly be out of whack on our projections? So I guess the real question is, did we give any thought to Coca-Cola messed up the numbers for this as well as our finances?

I think for me, looking at the 2020 urban water management plan studying for this, the numbers were reduced based on conservation, too, as well. So even though Coca-Cola would have had the number higher, I think it still would have been lower. Oh, no, I agree. The water conservation was so good. So the potable water usage is going to be down overall. But you are correct. The number would have been higher. But I think it still would have been lower than the 2020 projected number. Yeah.

And I guess, like I said, it's a state exercise and so I'm not as worried about what those numbers really say anymore, frankly. A clarifying question on recycled is are we using all the numbers we're expected to do for recycling? Even though, for example, if Tower Road gets extended, they would be using it for making cement conduit pipe, which isn't landscaping. But I'm just wondering, are we just lumping it all in because, you know, I guess my question is are we considering everything, whether or not it's landscaping or industrial use or whatever?

The Recycle Water Master Plan actually has a number of completed projects that are done. We have some that are not completed. But in terms of using a recycled water, the number that I saw, and that was 2024, was 155 million gallons annually. And so we're using, that's over 400,000 gallons per day of recycled water we use. So we do use a tremendous amount of recycled water that's there. Okay.

WE DON'T HAVE SEPARATE CUSTOMER CLASSES ON RECYCLED. OUR CLASSES ARE POTABLE OR RECYCLED. IF THE RECYCLE IS GOING ON A PARK OR A PIPE, IT'S ALL THE SAME.

THE LAST ONE IS MAYBE MORE FOR OUR CITY ATTORNEY TO LOOK AT. So we talk about Vallejo water. And Vallejo has taken a different perspective. And so I'm just wondering, is everything in the urban water management plan language that you're comfortable with so that we aren't going to have Vallejo saying, and now we're going to sue you over the 2025 version versus the 2020?

Right. Well, I can't predict the future precisely. Everything in the current plan is consistent with our current set of rights as we see them and as the courts have validated them to date. So I don't anticipate that this plan will result in yet another lawsuit. But I can, of course, guarantee it given they have their choices.

More to the point have they respond have they made any comments like? You know we sued you over this and we're still suing I mean or did Vallejo make any comments on our urban water management plan at all they were sent notice We've not received any comments. Okay good One of the last one is kind of a hypothetical Since we purchased 2,000 acre feet of treated Vallejo water even though we only use 600 or so a year and In the event of a drought, could we argue that we're entitled to a 20% reduction of our 2,000 that we're entitled to, which is like 1,600 acre feet, or the 20% reduction of the 600 that we use, or 400?

What I would say is, number one, our use of Vallejo water has been much more in the 100 to 150 range, not at the 400 range. And that shows up on one of these tables here. Secondly, it's pretty clear to us the contract allows Vallejo to reduce the amount that we're allowed to access. It allows them to reduce it the same amount they've reduced it for other customers as ostensibly part of a drought contingency plan. So if they were hit with issues, for example, that required a 10% system-wide reduction for their system, we would be part of the customer classes along with other customers that would see a 10% reduction. That's a reduction in what we're allowed to use. So our reduction would be from the 2,000 acre feet down to 1,800, for example. Now, if they were implementing demand reductions on customers, you get 10% less than what you've used, or they came up with some historical basis to baseline every one of their customers. As long as they were applying that uniformly against all their customer classes, we would fit within that. All we've ever asked for is equity amongst the customer classes for what we paid for. So it would depend on how they're implementing their demand reduction and the purpose for it.

All right. Well, thank you.

Thank you, Vice Mayor. I'd like to open up a public comment for item number 12. Do we have any speaker cards?

We have no speaker cards.

And no one online?

And let's see, no, there are no hands raised.

Okay, I'm gonna scan the room, see if anybody in the room want to have any comments. And I'll close public comment, bring it back to the council. This was also just a read and file, correct? For tonight?

Correct, Mayor. Correct, this is entertaining public comment. Public versions of the document are available at City Hall for review. Um, we'll collect the comments and we'll bring back to you on September 15th for adoption.

Thank you, sir. And thank you again, Norm. Uh, the fourth business item item number 13 is the voting delegate for alternate for the league of California cities for 2026 annual business meeting. Um, will that be our city clerk presenting on that? Or would you be presenting on that, Jason?

I'm happy to do it. CalCities is having their annual conference September 23rd. There will be business items for them to vote on, for us to vote on amongst all the other cities. They require that we identify who the delegate's going to be. Traditionally, it's Ben, the mayor, and then we propose an alternate in case you can't make the vote. And so it's up to you all. The person who's the delegate has to be going to the conference, and they have to be on the council. Those are the the two requirements. When I say that jokingly, I can't do it, even though I'm going to be there.

OKAY. I GUESS I WILL ENTERTAIN MY COLLEAGUES TO SEE IF THEY'RE GOING TO APPOINT ME TO DO THIS MOVING FORWARD, WHICH IS FINE.

I MOVE. I MOVE THAT WE APPOINT MAYOR PIERRE WASHINGTON AS OUR DELEGATE. AND I BELIEVE LAMONTINA, COUNCIL MEMBER LAMONTINA WILL ALSO BE IN ATTENDANCE, AS WILL I. LET I VOTE THAT SHE BE THE ALTERNATE.

I'll second that.

Okay, so we have a motion and a second on the table. Can we get a roll call, please? Yes.

Yes. Sorry, let me just catch up here. And it is... Councilmember Cruz? Yes. Councilmember Lamatina? Yes. Councilmember Oro? Yes. Vice Mayor Joseph? Yes. Mayor Washington?

Yes. Thank you. Thank you, colleagues. Moving on to our manager and staff oral reports, we have item number 14, the utility updates. Mr. Hawley? Norman?

It's me again.

The glassless owner. I know.

You guys are tired of seeing me. One thing that wasn't on here before I turn it over to the best part of this presentation is fresh off the presses. Why am I forgetting her official title? But by Dominique. She is our sustainability expert. intern not our house because that that would be uh... that would be born but yet uh... we we we were able to make this one page and hopefully uh... it talks all about our high school waste project we're gonna be sent out so they were able to read it additionally we hired a uh... uh... brian became brian buchanan uh... it from robertson and brian he's an engineer he's going to help us with our rfp we should have that out by q3 late q3 early q4 to push our high strength waste project so definitely wanted to share that news with you guys hopefully you guys like the way the flyers are looking and I'm going to have to put a shot out, too, for this, too. I'm going to pass it out. And this is a screening for a movie, unless things go terribly wrong. It's an amazing experience for operations and for upper level and lower level about deferred maintenance, operations, staffing, and all those things right there. The event's over at the Redwood Credit Union over there, and it's september 10th from 11 to 1. hope to have you all there it's ten dollars and it's a good cost because it goes to our local uh cwa res section here regionally it helps our operations staff our people are volunteering and helping us get people into the field as operators wastewater water environmental services as you look around in our field there's a lot of gray hair there or no hair at all and so you got to try and get I'm what you want, though. Or both. So that would be a big thing. And before we get into the presentation, I do want to acknowledge the contributions of our utilities contractor, uh... brian anderson who's been sitting over there patiently waiting i i told him that i asked him to come so i can get him some flowers publicly when i get to the section of the water which i'll be doing tonight just want to thank you you've been uh... a huge asset to the uh... city in many different roles made different capacities uh... even as mentors well out there at the water plant with some of the younger operation staff that's out there so definitely wanted to take time to know that That further said, let me get out of the way. This starts with the water reclamation facility, so you can start the good part of the presentation now with our interim wastewater manager, Nolan Garcia.

Thank you, Norm. Good evening, council members, Mayor Washington, colleagues in residence. There it is. So I'll start with our wastewater collections. So with Chris Morris leaving, who we recognized earlier, we had obviously a hole we had to fill for a sewer collection supervisor. A longtime employee, Fidel Lopez, came on over. He was a senior maintenance worker for the distribution facility or distribution system. He came over and filled that hole for us, and we appreciate him coming on. Along with that, Manny Ramirez, one of our newer employees, COLLECTIONS WORKERS HAS PASSED HIS COLLECTIONS I AND HIS CLASS A DRIVER'S LICENSE, WHICH IS REQUIRED FOR HIS POSITION. I WANT TO HIGHLIGHT KELLY LOCKHART AS WELL. HE PASSED HIS D2, WHICH ISN'T REQUIRED, BUT THIS IS KELLY GOING ABOVE AND BEYOND, AND HE'S EVEN GOING A STEP FURTHER. HE'S GOING TO START TRAINING TO BE A TRAINER FOR OUR CLASS A AND B DRIVERS FOR THE MAINTENANCE CREW. NOW, OUR PUBLIC WORKS SUPERINTENDENT, BRIAN MATERN, CURRENTLY DOES THAT, AND THEY'RE WORKING TOGETHER TO GET KELLY TRAINED SO WE CAN HAVE MORE THAN JUST ONE PERSON TRAINING THAT. Also, Jose Sandoval, new collections worker, just started this week, so welcome to Jose. And as far as these guys have been really busy since our last update, they've cleaned over 30,000 feet of sewer mains. There's CCTV, the Montevino, America, and Entrada subdivisions, so these guys are staying real busy out there. We had two minor spills, nothing big, cleaned up, 47 gallons, and they have been continuing to vacuum out our pump stations, our six wastewater pump stations, on a quarterly basis. They got to work on some weed abatement around some pump stations and lift stations. We have some manholes that are kind of off-hidden and they've overgrown, so those guys were out there cleaning those up. And one thing I wanted to really highlight here was the lower lateral repair at 1439 Rio Grande. Now, this was Fidel doing his due diligence. He jumped in right away, looked back at the CWICs reporting, hey, we had some areas that gave us a problem three, four years ago. Let's go look and see if there's a problem. And before there was one, this lower lateral had some roots and stuff in it, so they were able to go out there, clean that out before it became a problem and a potential sewer spill. catch up sorry about that as we move forward to wastewater operations another shout out to our newest operator Martha Harp she passed her grade five congratulations to her very hard work to get that and so glad she got it good for her congratulations Martha We completed our tree clearing at the water reclamation facility for the high-strength waste facility, so that all got wrapped up. When I turned this into norm, I was being a little optimistic on the SCADA project. We got about three weeks left. It says completed. It's fully operational. It's up and running. We primarily use it. We got some data stuff we're ironing out right now. So about three weeks, that thing will be all wrapped up. We have started our membrane replacement of the final two treatment trains. So Veolia is currently on site. We started this week putting everything together and we will have that done September 4th is the projected date that the last two trains will be completed. Biosolids removal project has been completed. We started late May. We had Senegro come in and removed just under 600 dry tons. Looking at the pond, we haven't gone out and done the measurements yet, but it looks like we have about 2.5 million gallons of extra storage capacity, which is going to be big coming into the winter that they're projecting. As of actually as of tonight I can update these numbers. So we've actually treated 328 million gallons that have gone out to the Napa River via the constructed wetlands and we've made 116 million gallons of recycled water so far this year which so total treated waters 444 million gallons At the reclamation facility Little current and future future projects. We've been working on we've completely updated uh... revamped and updated the facility evacuation plan uh... we have been completing the SOPs for the facility which is a requirement we're almost completely done with the current ones and then we have new ones that are uh... that were uh... currently making right now uh... we are going to start a facility painting and beautification project we're going to take that on in-house it's something that needs to be done as we walk around and look and hats off to Greg Day also the maintenance worker for the water uh... treatment facility i kinda went up there did a tour and saw the work he's been doing i went Oh, we're falling behind. We're going to have to catch up with some painting. So hats off to Greg out there because he's been doing a wonderful job. Some CIP projects we're looking at jumping into this year, the UV rehab phase two and three. Simple stuff, but things that need to be done to keep us up to capacity for treatment. Rehabilitation of the recycled water tank. And then full implementation of the CMMS is underway. We're probably about 70% of our assets are implemented. I've got... Almost two-thirds of our permittive maintenance plans made and set up, and so we're getting close to the full implementation. Hopefully in the next year we'll be fully on that CMMS system. And that's it for me.

A quick question. I remember when we purchased the membrane replacements, one of our beefs was that it went up because of the tariffs. Since some of those have been outlawed, do we have any opportunity to try to claw back some of those tariff rebates or are we eligible?

Not for the last year's, but for this year, it should be less. It'll be less than what they were projecting.

Okay. Trying to claw back a few bucks since we grumbled about the extra. Thanks.

And you guys thought you were done with me for the night, and you're not. So let me... Jump in here, I'm gonna be doing the water treatment plant and the water distribution teams. Starting right away, the water distribution 2026 performing meter installation, valve maintenance, water system repair, CIP, and DV projects. A lot of the work that's going on around here, I can't take my hat off enough to Francisco and his team. small but mighty. That's how you would describe our water distribution team that's out there. We completed annual hydrant flushing, completed three underground water main repairs. You see them out in the community all the time. You see their trucks, you see them out there working. Upgraded to solar-powered active cathodic protection at the water treatment plant tank and Oathill tank to improve water quality, protect infrastructure, and support renewable energy. And we installed irrigation to the Little League baseball field. The volume of the potable water can serve for the Little League recycle irrigation program. So once again, we kind of fall into, we do the recycle water over there, but there we do, we lost water. You know what I mean? Potable water that's going over there in terms of any kind of revenue. WATER TREATMENT PROJECTS AT THE FACILITY NEW WATER TREATMENT PLANT OPERATOR TO RAYMOND FERNANDO HE STARTED IN MAY HE'S DOING AN AMAZING JOB RUNNING AROUND OUT THERE HE'S DOING HIS TWO AND I'M BEEN TALKING TO HIM ABOUT TRYING TO GET HIS HIS HIS THREE HIS THREE ALREADY Establish a new coagulant for both treatment plants achieving disinfection byproducts Compliance while reducing treatment costs by approximately 700,000 in physical year 2526 compared to physical year 2425 Brian big props for that one do some some jar testing experimentation and as well as Tom the operation staff those guys jumping out there and not just accepting what was and you know the challenge was hey can we do better and the guys actually did better producing 700,000 in savings the SCADA upgrade project in progress not quite as far as the water reclamation facility but a couple months away I believe that we'll get that done annual sludge pond removal completed sludge press pilot program was done we just recently did a pilot program out at the uh... the WTP to see if we could Dispose of some more solids out there and it's pretty good It's expensive project potentially do but the pilot program in itself would be a nice item to talk about maybe one night and The geotech analysis was done for the shop that's going to be built out there So the shop is needed for the water distribution team We have valuable valves piping Gaskets sitting out there right now covered with tarps and we need to get those in a building to make sure that the investment of city makes in our equipment and we're able to actually utilize that equipment when it's time to pivot to it the water treatment operations and maintenance the annual shutdown and maintenance was completed we replaced four water quality analyzer pumps installed four installed one four inch meter for reclaimed pond reclaimed screens on all the open pipes this is a lot of work that's actually being done out there at the facility, add it and replace vacuum breakers on all hose bibs. We had a EPA visit out there in November. We've chopped that list down to next to nothing right now. Only things left on there are some major CIP projects, one of which the media replacement has already been awarded. So pretty excited about that. And coming up next, we have the closer of everything, our Environmental Services Manager, Pam Phillips.

Good evening, everyone. So I'm Pam Phillips, the Environmental Services Manager. We've been pretty busy in our division the past couple months. We stay pretty busy. We do a lot of seasonal work, so that makes us busy all year round. As far as the... I don't.

I can change it.

That's OK. So no, for Cash for Grass. It's busy, especially when we start advertising that we're still doing the cash regress. A lot of people like to come out during the spring, summer and start changing their lawns out. So 10 projects, 7,000 square foot of turf removed, $6,000 in rebates. Same with the toilet rebates. They started coming up again. People are doing home upgrades. So 20 toilets replaced, which was $2,000 worth of rebates. We are actually updating the enforcement response plan. It hasn't been updated since I want to say 2009. So we are going to be encompassing all the environmental programs that we do. So that way there's a very strict way on how we enforce and it's very, there's a template on what you do. We're also doing job aids for all of the jobs that we are currently doing. We've been doing a lot of training the past couple years and the past couple months, so every time there's new training done, we're actually creating a job aid, so that way anybody on the team can take over for a certain job if somebody's gone or if they get sick or whatnot. So you can be looking for the environmental response plan update probably in the next year or so. The MPDS permit summary, so at the plant we did kick off our MPDS renewal in July with Larry Walker and Associates. They'll be doing the report of waste discharge. We just finished up our third quarter chronic toxicity species screening. We had to do four quarters. We did have a self-reported violation in May. We did not turn off the water that goes out into the North Slough before May 1st. So for about six hours we had an illicit discharge. So not a big deal, but we did put on to all the operator calendar, my calendar, Nolan's calendar, to turn this off. We've never had it on our calendars. We've always just said we're turning it off, and somebody turns it off. And this year, for some reason, it didn't get turned off. So anyway, we haven't heard anything about that violation. We did have an audit on June 2nd. And again, we haven't heard anything from the audit itself. So kind of no news is good news for that. Recycled water we currently have 60 commercial users. We also have 40 city users meaning 40 separate parks walkways, etc I must say I want to shout out to Lisa lie our environmental specialist taking care of recycled water because she's really put the program together We've updated all of our permits. She's gotten all the quarterly report submittals, and she's also actually done all the site inspections. So yearly, she has to go to every single site, talk to the user, make sure that there aren't any leaks or ponding and make sure they have their signs up and make sure they're doing all the things. So again, we have never actually done all the user site inspections per year. So again, a shout out to her for getting all those done. And then we've been ongoing training to all of our employees about recycled water spills, because again, unfortunately, anything that spills over a thousand gallons, we have to report. So we've been constantly training a lot of our maintenance people on how to report those spills to us. The picture's actually the whole Green Island Road spill that was 300,000 gallons. So that was quite a big spill that we all really worked on. My team's also taking over the backflow administration job because there's software that we already use currently for fog and for our commercial dischargers. And so just kind of helping to alleviate some of the the job from somebody else, we're taking that over because we already use the software program. So again, with the environmental compliance that we're able to do now with the policy being adopted, then it just makes sense for my team to take that over to be able to, again, just have compliance in a very templated manner. Solid waste. So we were doing our route reviews in the summertime, so my team's been getting up at, you know, out there at 530 with their headlamps on looking through people's garbage. We've done 305 visits, 671 lid flips, And we have a 46% contamination, which is high. Um, you know, and it's always, I think these are the kind of the same things as we saw last year. There's a lot of paper food and paper towels in the landfill and the compost. You have the comp, the liner bags and loose plastic and in the recycling bin, again, that loose plastic film, paper towels, plastic liner bags. Um, you know, people are a bit lazy when you get the cases of sodas or waters. They just throw all of that in the recycling. So again, by being able to have the software program that we do have, we can see what the biggest contamination is and then we can start making outreach that addresses those contaminations. Just a few things to Recology is actually giving away two bags of compost for all AC residents. You just need to take your driver's license down there and you can pick up two bagged compost. We also are still continuing the residential hub at the community garden. So we're continually having compost out there. Residents just need to be able to shovel it and have a container to put it in. The hydration station has been making its rounds throughout the city this year. It's been to Meet Me in the Streets. It's been to the Fourth of July. We've saved over 1,000 plastic bottles from being used. So I think it's a great hit. I like it. I don't know if you all knew, we did have a regional tour at the WRF. CWA has never done a three-section tour before, so we had Redwood Empire, the Sacramento, and the San Francisco. We had 100-plus participants for the tour, and every single one of the staff members at the WRF participated, and whether that's traffic control, giving a presentation, giving a tour, giving out information, it was a great event that we held. Again, we've done a lot of outreach and collaboration this year. We've been to the high school several times. We've been at Meet Me in the Streets, the Citizens Academy. We actually even went to the Napa County Office of Education eighth grade job fair up at the fairgrounds. So a lot of our operators, Nolan, my environmental specialist, we've all been going out. It's taken a lot of us to actually go out and do a lot of these outreach events. Shout out to Norm who did a CWA presentation at the annual conference. There was about 13 of us at that day that we went and saw his presentation and he did a great job. So hats off to him. I think that's about it. We actually bought some portable microscopes this year. So we're able to take these portable microscopes out, take out some of the the mixed liquors that we have at the plant, and then underneath the microscope, we're able to showcase the bugs that are living. A lot of people can't come to the plant, so this, for us, it's a way to bring the plant out to the students. The students are great because it gets them really interested and excited in science. When they find out these bugs are eating their poop, they're a little grossed out. But they are really cool. I tried to do this video, let's see if it'll work.

And that's very healthy, by the way. You guys see that space that's in there? Yeah, I guess it's not. That's looking good right there, just so you guys know for more content.

I guess it's not going to load up. Anyway, those are all these little bugs. They're actually moving around, and the kids get a great kick out of these bugs. And again, I think it's just great to see their Fascination and excitement into science as norm said there's a lot of gray hair bald people in the wastewater field these days So trying to get people excited to into our field So anyway, just trying to again just trying to get kids excited about science and And and all that with the microscope so that concludes my presentation if you guys have any questions

Thank you, Pam. And thank Norm and Nolan for the presentation as well. I especially like how you guys acknowledge your team. You know, I think it's important, and as leaders, you do a really good job doing that. So thank you for doing that and acknowledging their commitment to excellence. With that said, I'll go to the council for any clarifying questions for the presentation. Seeing none in this topic, I'll open up the public comment. If there's any item, any questions from public comment for item number 13? Seeing none, I'll close public comment. And then I guess there's nothing else we need to talk about.

Just a couple quick other, Allie has a couple quick other updates just on community events. Allie?

Mr. Mayor, I will be quick this evening, but I do want to give a quick update. First and foremost, the American Canyon Arts Foundation will be hosting their community mosaic dedication on August 20th at the Micologic Center at 6 p.m. On August 26th, the American Canyon Police Department will be hosting their first of their series, Show with the Cops, at 7-Eleven at the 218 Amcan Road from 130 to 330. Come on down and get a slurpee with... our youth of American Canyon. And then if you have not done so already, but we are still taking registration for our Citizens Academy, which is starting on August 16th through November 7th. This is our nine-week program for you to get to learn how our city serves you. and you are able to connect with city leaders and city staff. It's behind the scenes look and you get an actual tour of the WRF and the water treatment plant, as well as you get to do a community service project that benefits this community, it's lasting, and something that you get to point to. And then lastly, the City of American Canyon will be hosting a community meeting around Measure P. You'll have two opportunities to attend, one in person and one virtually. The virtual meeting will be on September 21st from 12 p.m. to 1 p.m. For those details, you can go to AmericanCanyon.gov forward slash Measure P to get that Zoom link. And then if you're not able to attend via Zoom, you are welcome to attend our in-person meeting, and that is going to be on September 22nd at the Adult Activity Center from 12 p.m. to 1 p.m. And we are encouraging the community to submit your questions. Again, we have our email on the website as well, and that is communications at AmericanCanyon.gov. Thank you so much, Mayor and Council.

Thank you, Ali. Moving on to our Mayor and Council Committee reports. We'll start with you, Vice Mayor.

Nothing too much to report. I was gonna do a shout out for the mosaic dedication Thursday, but that's already been done. So Anybody who's anyone should be there? It's free and there'll be food and refreshments.

Thank you, sir. Councilmember or Nothing to report. I can't make that mosaic thing, but I do believe I have 200 tiles placed on that thing myself when we did the contribution

You will have an opportunity, Council Member Orr, to look at the mosaic and figure out which ones you actually put on there, too.

Council Member Lamatina.

I don't have anything to report. Thank you.

Thank you, Madam. Council Member Cruz. No, sir. Thank you, sir. Any future agenda items? We'll start with you, Vice Mayor.

I am a little concerned about some of the public comments we got this morning or this, well, probably this morning. Felt like this morning. It felt like it. Mostly, can we have some kind of follow-up on Corvina Way as well as the Palazzo?

you know or at least some kind of uh... staff follow-up or or response to those two issues that's probably not an agenda item per se it's just a please follow up on those uh... councilman or uh... nothing uh... i do know curving away i have to agree with that when that's been an issue there for a while uh... i think residents need help even though was a bad private situation set up the way that whole thing was done. Would love to just try to find a solution, help them find a solution.

Council Member Lamatina? Nothing. Nothing? For future? Council Member Cruz?

Yeah, we, Rhonda and Patricia from 707 Helping Inc. I know, I mean, they feed over 300 individuals per month in American Canyon. And all they're asking for, not necessarily hand out our money, but they're asking for some type of distribution center. Is there any way we can help facilitate that, whether it be make a logic center, any type of, community center where I know food is an item but if we can connect them to some type of resource where we can help facilitate that because I think they're doing a wonderful thing for our city and

Thank you, Councilman McCruse. For me, I also was concerned about Sandra Wall's comments about Karina Way and whatever you need me to do, city manager, we can go visit her, go visit that opportunity, visit that resident to kind of see what's going on there. I'll make that my commitment. And it is now 9.59, and I think we have concluded all of our business for this evening. We are adjourned before 10 o'clock. Good night, American Canyon.

Good night, American Canyon. She's a great person, but she's a...