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cycle or end of the year where money is refunded to customers. The feed in tariff is a method that's been used in a number of areas and this is one that as the energy is fed into the grid, if you want to think big term as as it's fed in from a customer who has an excess, that's where it is kind of justified. And there is credit given and funds applied to it. And as we look at all of these, there is different things that we need to think about. One is in the future, we're not going to have the luxury that we have right now of having rec dollars. So we have to come up with a plan that is going to return the funds to us that we need in order to maintain all our lines, everything not just provide sort of a backup when somebody has solar energy and it's a foggy day and we need to provide that energy, somebody still has to cover the equipment and everything else. So these are things we're thinking about. Yes, Mr.. I if I could just ask you two. I did go to that wonderful town hall that the amp put on a few weeks ago, but could you just for those who might not have been there, tell us what the rec is referring to, the renewable energy credits. Okay. One of the things I think we're very proud of is we've always been a very green, very renewable, energy focused organization. And as we started with the state mandates around renewable energy and the 33% that we need to get to by 2020, we were way ahead in terms of the environmental mandates, both on our renewables and overall. We have some large hydro, which California doesn't recognize, but it also reduces carbon. So when we look at that, we were able to take. Under the cap and trade regulations. There were so many recs that were allotted to us and we were able to use some of those and sell them to others for use for them to come up to their incremental allotments that they had to come up to. So we took advantage of the fact that previous boards were very smart. We had nearly 80% renewable. Of that, we were close to 60% and which was California eligible. So our board determined that we would not go under 40%, that we would. In some way create a commodity out of what we had in the. Space in between. And so we were able to sell that to others. One was water district bought from us so that they could be compliant. Palo Alto wanted to be 100% green, so they brought bought from us, you know, for a short period of time until they have other resources. So those are the kinds of things that, you know, when we talk about recs and renewables, the dollars that came in from those sales are restricted funds and they're restricted to be used for energy efficiency or for other renewable sources. The board created policy to restrict them to that. So we made a commitment to the community when we said we were going to do it. The policy is in place. So right now we have money to do things. Our other part of the policy is we will not spend it till we actually have it. So even though they're so the money doesn't come in because it's a multi-year. Process that we've sold them for a two year period. And so the money doesn't come in all at the beginning, so we're not allocating it until we actually have it. Does that help? Very much so. Thank you for that. Excellent. Okay. Thank you. She's very knowledgeable, as you can tell. A member, Odie. Thank you, Ben. Just a quick question. Talking to continue the discussion about the recs, I think you made a comment that, you know that we're going to lose some of that funding. Can you kind of explain, you know, why that's going to come about? Okay. As the money comes in, it comes in over a period of time. And so we will not allocate it till we actually have it. And once we allocate it, there's a period before it's actually spent. So we do have money accumulating now. So some of the things that we have allocated it to and spent it on are some of the streetlight projects that's taken a big chunk of it. We've also put in the EV Chargers at AMP. We have two that are being put in now that will have the higher level of charging. Those we will charge a fee for. But the whole infrastructure, putting them in a manner that funds some of the electric cars we've purchased for amps use so that we're converting some of our fleet to electric so that we can add to the energy efficiency and. Me. Is there something I missed? Oh. Part of our Army project moving to our army, our interactive meters. Part of that project has been the pilot part has been funded out of that money, I think. Okay. Thank you. Thank you for asking the questions. I think it's important for us to make sure that you know what we're doing with the money. And the community gets to hear it as well. The other thing we're looking at is how we can accommodate some of the L.A., the unified school districts projects in terms. We've supported them in terms of energy efficiency, doing audits, encouraging light replacement, some of those kinds of things. But we're also looking at are there other ways we can help them with community solar or something else? Is there some way we can partner? So that that is something that's still on the table. Other current issues. The next underground utility district reconstruction area needs to be identified. And as you know, that's come to you with the process of how we're doing that. In December, we expect to have a report back and some recommendations that would be ready to start playing into process next year. But even though it starts in the beginning of the year, that process has a lot of community interaction, a lot of touch with the community, so it doesn't get shovel ready for quite a few months into the year. So there will be a lot on that next year. Moving forward to city related expenses and transfers of money. This is something that I wanted to put together on one sheet, and I think it's important that we consistently remind not just you, but everybody in the community that as an enterprise department, we constantly return to the city. And as you will notice here, it's a pretty sizable chunk that our general fund transfer is 2.8 million. Our pilot for 2016 is estimated to be 1.5. The city cost allocation is what is allocated to us for each our services accounting, you know, all of those types of backroom processes that have to go on in any business. Legal. Legal is actually a city direct cost. So you have a line all to your own. You're not back room. We're in a back room. You've got a line all by yourself there. So that's about 136,000 rent and warehouse space is 189.8. And then we have one that has been new this last year and moving into this year. And that's when we took over the streetlights and not only providing the energy to them, but the maintenance of them. So you can see for 2015, we were at 380,000 and we're bumping up to 450. That's as are replacing more as we're doing more work on and we're maintaining a larger fleet of lights, if you want to call it that. So that number is bumped up a little bit and then garage fees and sewer is 96,900. So in transfers and the costs that we pay to the city, that's almost $6 million. And if you think about that in terms of percent of your general fund, that's probably getting close to 9% right in that area . So it's a good chunk of it. The other way to look at this and I think this is important for the community is that on top of that, when we look at the. Addition of dollars that we put into the community's pockets by having rates that are 15 to 20% lower than PGE and EAS or other utilities . We are putting that money back into the local economy and also we're putting in sponsorship money for a lot of schools to activities, parades, festivals, whatever. So if you look at it all together, we've calculated that it's about $10 million. It's going back into the local economy. So that's a sizable chunk. Yes. And when you mentioned the the rates that are 10 to 15% lower than other jurisdictions, I think that's also helped us in selling Alameda to new businesses to to locate here. So it's it comes back to the city in many different ways. That's a good point to make. It can be used as a developmental tool for new business. Any other questions on that one? One other thing, just to note that in addition to this, in fiscal year 2016, we're repaying the $2.2 million loan that we had received earlier on. And so that is being repaid. So you'll notice that that that will also be included. Now the cost of doing business because our businesses energy, most of our costs are energy. And one of the things for us that's always a challenge is predicting what our energy is going to be. And when you look out, as you can see, our perform goes out to 2034 here, trying to calculate where we will be and using a lot of different statistics and things. The red line going across the top shows our load, how much energy we need and how it's going. We're expecting it to grow over the next 1518 years. If you look at that little gridded area up in the corner, just to point out, that's the only area that isn't covered right now by the contracts that we have. Very energy. So that's the area that we buy essentially with term purchases, short term purchases starting at the very bottom. I'm going to work you up from the bottom of this chart at the very bottom, the black line that. Actually is the bottom of the graph is the combined turbines number one into. Those are the two that are out in that area. That's kind of between cardinal point in the back of Rosenbloom. There's two of them out there. They belong to in CPA, the Northern California Power Agency, which we are a member of. So we co-own them with the other members of the group. Those are only used a few times a year. They're mainly if the power peaks very high and they need to turn them on for a short time. Other than that, they're turned on to make sure they continue to work. But because they use natural gas, they are not running. All the time. They're not considered renewables. These are just essentially for those peaks when additional power is needed to be fed into the grid. And another little side note, the Northern California Power Agency is the one who schedules our power. So on a essentially minute to minute basis, they schedule what our needs are and work with our local dispatchers to keep that in sync so that we don't have brownouts or lose power completely or have too much power going into the system. Right above that. The blue area is from Calaveras Hydro. So that large amount is hydro and you see that pretty flat all the way across. That's a pretty consistent resource for us. So we don't have to worry about it going up and down and fading out. We do have a little bit of a drop off in drought years, but not a lot. You know, even our worst case scenarios when, you know, we plan three scenarios, we plan best case, worst case and a medium one. Middle of the road. And now, right now, we're looking between the middle of the road and the drought scenario. And that's what we're working on. And so that's staying pretty constant. We also have Western, which is hydro. And above that there is a small area of it's great ego. I drew. And then we have the geothermal. Then we have landfill gases. And we have wind at the very top. If you notice, the wind in the landfill are dropping off. I think if I do that. Yeah. Okay. Now, the reason for that is, is that particularly in the landfill, the gases in any set landfill only lasts so long. There's no way of really at this point beefing up. Now, who knows what the future is going to bring? So what it means is creating another landfill situation. And so that's something that we look for, is where else can we buy into another contract on the landfill? The wind is the turbines, the windmills, basically. There's a lot of older equipment out there and that has a certain life to it and it fades off. So as you can see, there's purchases that we have to make in the future that were covered for quite a period of time with pretty stable resources, and we use other contracts in between and all the time we're looking for other renewables that we can purchase or other opportunities, and particularly with the Northern California Power Agency, those come up on a pretty regular basis where we can partner on different things. And one of the things like the geothermal was tapering off, but now they've pumped more recycled water into it. And so you can keep it going longer. Any questions on that? So a lot of information. So when I look at this chart, is this telling me that the white area is basically a gap between what our what our estimated or projected demand for load a demand for energy relative to the. Sources of energy that's available. So. Right. Usually our contracts run out or depending upon what it is, a lot of our contracts are ten year contracts. Some go out further. So what it's showing you is that within the next four years, we have to purchase similar, more long term contracts. Mm hmm. To fill that in. And so it's kind of a rolling process. We have a department that's constantly looking at that. They're looking to see what there is available on the market and then in CPA is helping us to be aware of what our opportunities for projects. So that's one of the things that we get into with funding issues when we have to get involved in a project and we either have to be involved in part of a bond issue or come up with funds if we have them. So those are things. Knowing that probably getting out past, you know, 20, 20 and beyond, we're going to be involved in some more big projects at some point. Okay. So I guess the key thing then is that this is. Point in time picture of our projected demand relative to our already in place sources of energy. Correct. So that while there is significant white gaps, white areas in the far right side. That's not to say that the far white area will continue to be as white as that, because in the coming years we will. Look for different sources of of energy, particularly to replace the the landfill gas and the wind. Okay. Right. If you want to think about it's a rolling pitch here that everything keeps moving across and as it moves across, that gap moves along with it. So we'll always have a small gap and a bigger one at the end as you go further and further out. And can you clarify again the top left of the chart, the red grid? What does that. That red grid is is essentially energy that we've purchased off the market. All right. So it's. Market price. So it's term purchases are very short purchases. Okay. So that's something I think that could be included as part of the key in the future. So when you're looking at this. That's Erica nose at the bottom. No, she said, just. To have it as a caption. If we use. This, you know, at the bottom. Legend and legend on the bottom. In other words. Be sure to speak into the microphone so we can capture what you're saying. I'll fill in real quickly, because I'm sure that big white gap is creating some problems. I can see that we we do what we call an integrated resource plan, which we're about to introduce to the to the board, probably in October of this year. And what that does is that projects out how to fill that that white gap. And we already know at this point pretty much what we have to do. And we're already in negotiations with with others that will supply mostly renewables, because keep in mind, we want to continue to add renewables. That little hatch market that you're asking about, yeah, that's market stuff. And we always go into the market a little bit because you're never quite sure where that load line is really going to be. So you don't want to over purchase, so you want to be able to buy on the market to kind of bounce you off . But in the future. And when we buy and so. Stiger and I don't think he understood what my comment was. I want to clarify real quick on the legend at the bottom of this chart. You don't have a description for that, so we don't added in the future. Yes. Appreciate it. Thank you. All right. Now in regards to The Gap. Right. There has been quite a bit of interest, if you will, in adding solar to homes here and here in our town. And also, for instance, when they're built to add solar, could that not fill some of this gap? I mean, why can we not look at solar generated here in our town? We can we can look at solar generated here in our town. What we can't rely on is that distributed generation on rooftops is going to be adequately maintained at a particular volume. You know, we're a particular amount of energy. People's energy use goes up and down their rooftop production alters with the climate changes. So cloudy, stormy weather does not produce solar energy in the evenings and nights when it's dark. We don't have solar energy production until we get to a point where we have reasonable storage for that energy, which right now it's not cost effective for us. We can't use it to fill that gap per say. What it contributes to filling some of is the little tiny bit of grid area that we'll always have. It may fill some of that at some times. Our major problem is that with solar, the production is mainly peaking midday and late afternoon. I mean, in Alameda, our production is those hours are high usage. There is some high usage mid-day but not like other areas because we don't have the industrial use that other cities in the area have. So we don't have a really high load midday. It goes up a little bit, but our peak goes up in the evening. So particularly during the winter, our peak is, you know, 5 to 10 p.m.. In that range. And so that's a time where solar is not going to fill it. And when you look at the top of the line, that's the peak we're talking about, you know, those top areas. So it does help. But we can't count on it to fill in all that white space. So the other thing with solar is that in order to fill a chunk of it right now, you notice solar doesn't even show up on there. And even though, you know, we have solar around town, you see it on the rooftops, it's not a high enough percent to really show up in. What's being fed back into the lines or into the grid is a very small percentage of what's being generated. And when we look at that white area, that's what we have to fill is with what's going into the grid, not what's being generated. So if I put solar on my rooftop and I use it all in my house. And nothing goes back in. So for the general chart like this, it doesn't even show up. But in regards to the what's necessary, your red line. If we had more homes with solar, could we not see that red line coming down in the future as opposed to actually escalating regards to how we could if we. Weren't capturing the usage with when we move to the interactive higher level meters, we'll be able to capture more of the information about what would really be available. You know, right now we can't, so we don't know how much that would really bring it up. So this the red line, those based upon. Can you tell me what that red line is based on? It's based upon the amount of power that we have to purchase and have available for people to use. Even if we were to have a huge influx of solar. We would still have to have a peak that's fairly close to this to account for the peak usage during the times when solar is not available. However. So this line goes out to 2034. So if during that time there is a better way to either have more efficient solar panels or better storage of the energy that's created, then we could see a downshift of this red line next. What we could see is if there were storage, it would still show up as the red line as it is, it's going up, but the energy would be fed in from that storage as opposed to purchasing it from someplace else. So when we're paying them to the customer for what they don't use, we're paying the feed in tariff. How that works out is whatever the calculation is, if we're buying back energy from them, if we had storage, we'd be able to add it. Or if they're. Creating your own energy that they're using. So then there would be less demand on the grid. If they were totally off the grid and providing all their own power and did not need any backup. Power or a significant amount. Is what you can't predict is how many days a month, what days of the week where they're going to produce enough solar for their needs. So, I mean, there's a lot of variables and I'm kind of oversimplifying it, but there are a lot of variables, and I think that solar is something we would really like to be involved in. One thing to also consider is the state of California right now is not counting rooftop solar as part of our renewable energy that we're mandated to have. So it will not count in our percentages for California. Okay. And who makes that decision that. Ah, that's a legislator parents. That's, that's not right. Maybe that's something that can really change. Maybe that's something that could be considered. But that, that's something that we've asked about. Currently, their legislation is being looked at and I was just up in Sacramento along with some of our staff when about two weeks ago, I guess. And that was one of the issues. And our general manager also has been involved in meetings trying to create amendments to the proposals as they stand now. But their concern is that distributed generation on rooftop is not something that we capture all the information about. We don't know how much they're using. We don't know where it's being used. So we can't capture energy efficiency numbers on it. We can't actually capture the total amount that's being used. And so therefore we can't count any of the rooftop solar as part of our renewable portfolio according to the state, although it is renewable energy. And then I want to add real quick is that this gap is based upon then current technology, current usage, and over the next 20 years we may and this is why your job is so hard, honestly, why it's so difficult. Try to anticipate what technology will be available then. So we may or may not actually have that gap at that time future that. That's correct. And going forward it just may get pushed out further. So as we add, contracts will fill in and the white space will be pushed out. They'll probably always be white space. Some place is you always have to renew contracts or buy new ones. And as we have improvements in efficiency usage from technology and then whatever alternative energy sources. In the next 20 years, there will be changes. This feature is changing all the time, so if we take a snapshot two months from now, it's going to look a little bit different again. So it really is a snapshot in time, if that helps. But it's a good conservative snapshot in time, making no no projections as to what kind of efficiency will be generated in 10 to 15 years. So I think it's a. Right we know that there probably will be storage of some sort. We don't know what a cost effective. We know that there's a lot of work going on with interactions with the electric vehicles, conveying energy back into the system off ours, storing it and then putting it back in. So there's a lot that could be done right now because we don't have it in hand. We can't project it into this. If that helps. No, I remember Nebraska. And I'll just hearken back to the great workshop that was town hall that was presented. And I think the the PowerPoint presentation from that is up on the AMP website, is that correct? Yes, it is. And but one of the themes that did keep coming up and I will say there we have really smart residents in Alameda and they stay up with the latest changes in technology. And there is, as the mayor indicated, a lot of interest in adding solar. But the there will be improvements in the technology and exactly what you said there is, you know, capturing the amount of generation, storing that generation. And I know there was some talk about some battery storage that is being developed maybe by Elon Musk of Tesla. And so what I think the five of us up here can do while we're in office is to make sure that when we have these new building projects coming online, new businesses coming into our city, that they are they're being built. New buildings are being built in an energy efficient manner that we give, you know, every opportunity for people to use less energy. I know that cuts down your revenues. But in the in the in the long run, in the greater scheme of things, we want to be as energy efficient as possible. So it does start with making good decisions before shovels ever get to the ground. But I'm really excited that we're working with such a progressive municipal utility, so thank you for all your good work. Hey, lots more information for you. I know you have a long evening already, but I want to share a little bit about the cost factor that goes with this, because that's another important side of the picture. And if you look at the next chart that we have up here, you'll notice that the two things that grow consistently all the way across are on the bottom, the power costs and the transmission costs. Those we have projections are that they're going to continue to go up. We know that the power will continue to increase in price. We know that the transmission costs, with all of the various regulatory agencies, the new lines that are switching lines that are expected in the future in order to bring in more renewables to the Bay Area from outer areas are going to cost money and those things we're going to have to pay a portion of and we don't have a choice in that is we have to use the transmission lines. So those are going to be sort of a steady uphill. If you notice, most of the others are pretty flat as we go on up our debt service, our contribution to the city are labor costs are staying. They go up just very slightly as we go across. You know, it's a very slight increase with the raises and things that go on on a regular basis, keeping our size of our workforce pretty consistent. The material and services also go up slightly, but where you'll see a bump and I think this is important to note for you is in 2017, 2018, you'll notice that the capital and equipment costs go up tremendously, at least in reference to the other capital and equipment cost areas. The reason for that is, is that we are putting in the new infrastructure, the advanced metering infrastructure is being put in. We have a pilot going on now. We hope to have it pretty much across Alameda. That is very costly to put in. And it's not only putting in the infrastructure on the metering side of it, it's also putting in all of the electronics on the other side so that we can use the data. So that is a big investment for us. And some of that money we can use from our rec and our renewable funds. So we can use a little bit from that. But there is part of that that we may have to finance along with. We're looking at the infrastructure for all of the new development going on in Alameda that when we look at those infrastructure costs, that's a big chunk, particularly as we get into 2017 and 18. We've put it on here. That doesn't mean it's budgeted for. So we still have to figure out how to budget for it and how we're going to cover those costs because they're not going to be recovered with our normal fees. And you know, that just can't be recovered in that short a time period. And one of the things that I kind of mentioned on that, I think it's important to be on your minds. Is this on ours as you look at infrastructure, money, dollars that are collected from developers? Normally we do a 60 40% split with a developer. That's kind of our normal standard. When we put in infrastructure to a new development, we split the cost as the infrastructure is going in at at the point. There is some money coming from developer. And one of the things we'll need to know in the future is what percent of that, what's going to be the percent split of what money we can expect to get back and how much we need to finance. So that's just kind of putting that out there to think about for the future. Every day. A just a question on the capital equipment bump up that you're looking at in 2017 and 2018, particularly what you referenced is there have other municipal electric entities adopted something similar to that that we can look at as as a model to to to duplicate if not improve on. There are a number of who have already started to put the that type of metering in Santa Clara. I think. Do they have the largest. Okay. And perhaps Mr. Steiger would like to come up so that people watching at home are missing this. And there will be a video, too. So. Yeah. Santa Clara has started. They're the largest municipal in northern California that's doing that. Smut is completely operable. And where I was previous to here in Southern California, Glendale has been operable since 2011 and is actually far ahead with technology. So the good news is that because we waited a little bit, technology has advanced and costs have come down. So. Yes, and also we. We don't really necessarily want to be the first one so that we can learn from the lessons of others. And we are not the first one know. And that's that's been a part of our board consideration. And we don't want to be the first mover, we usually are the second mover and use everybody else's mistakes so we don't make them. The other thing moving into the next slide goes into that. Oh yeah. Oh I'm sorry. Question on the. Question, I was just I'm noting that you said there's usually a 6040 split when you're working with a developer on putting in new infrastructure. Did I understand you correctly to say that you don't know what that split will be yet for the new development at Alameda Point? That's correct. We know you know, we know engineers have worked at the cost and we have the costs numbers. Oh, yeah. But, but. The actual splits of how the infrastructure funds that are being collected, how those are going to be split and what it's going to do to our usual, you know, and we understand that at times that has to change when we're trying to support something, but you can't fund it. And yeah. So what, what needs to happen before you have your answer? I think it's a factor of the planning that's going on with the point development that they need to figure out. Because as the infrastructure goes in, it's going into areas that we're sharing the space with other utilities. Right. So they have to figure out what that split is. And okay, you know, so that for us, it's unknown right now because we're going to be voting, you know, early next year to try and put our budgets together and decide what kinds of money we need and whether we need to use bond money or what we need to do. It's going to be urgent, you know, by the end of the year. We have some real firm numbers to work with. So that's just one thing. You know, we talked about concerns that's on our concern list. Thank you. Okay. Are there other things that are going into the infrastructure besides the advanced metering? And just a little aside to the advanced metering? That's the only way we can do time of use pricing is to have those meters in place. And time of use pricing is probably the most fair, efficient way of pricing energy because you're paying for what it cost at that particular time. And so that way high users during peak periods pay more if you switch. You used to use it during a low period. You pay less. And doesn't that system also allow feedback to users so they can see, you know, you're you're using an awful lot of energy at this particular time of the day or on this particular usage. Exactly. There's the smart part. Right. The other thing it does is that it allows us to see problems in the system faster. So I mean, all the way around, there's there's a benefit from it. We're also upgrading the automated distribution system, which is our system. And that was our what we used to call dispatch. But it's the staff that we have 24 seven that are involved in the distribution system. And the reliability tied to the Coast Guard island will be finished by the end of 2016. So we're currently doing that, the underground utility district. Those are funds that are already set aside for that. But it does come under capital, and we're hoping that by the end of next year we will have some actual work underway. And the relay replacement genny substation is already something that we're starting on. The mobile technology is what I was talking in the back end of. What we need for those meters is that this system, in order to gather the information, process it and make it usable, the electric vehicle charging stations and the electric vehicle purchases go into that. And then our street light program continuing the LED conversions until we have all led. You know, which is still we're working on it. Any questions in that area? Hey, the other area that we want to just make you aware of, you received a bound version of our strategic plan, and I don't know if you had time to look at it. What I want to do is very quickly, I'm just going to do a high level sort of blueprint of how it's put together so that you know what to look for in it. One of the things with this plan, it was a very inclusive plan process. It took place over a period of time, working with frontline staff, working with experts in various areas, working with our management staff. It was a very. Internal process on one hand, but using an external consultant who brought in all kinds of other information. Also getting information from all of our stakeholders. So really looking at who uses the services, what are they looking for? What do they need to have back from us? Those types of things. And as we looked at all of that, we came up with the fact that we must achieve excellence and we have to have a plan that's based on forward looking priorities. So we're always looking way out into the future. So we came up with key result areas. And I have to say our staff did a fantastic job in working on this and really coming up with very definitive things for us that we could work with that they could be accountable for. So we have goals that are measured. They're owned. We actually, in the plan have an individual named as the owner of each one. So there's somebody who is held accountable and there's a schedule. It tells you what quarter, that there's either milestones to be reached that kick off or an end date for it. And the initiatives are the define tactics over time. So as we look at these, these are the key result areas, customer programs and experience the workforce system. Resiliency, technology, energy resources. Financial and organizational stability. So on the next page it shows you how we break them out. So looking at the customer program and experience area under that, you'll notice that there are a list of goals that are highlighted in yellow, and each of those goals underneath them has the various initiatives. And going across you'll see right next to the goal there's a measure, overall measure for it. The next box has the responsible individual. So as a single individual, whether they're a department head or a lead on a project, and then you'll notice we go out about not quite two years, but about two years to show status. So when do we expect them to be kicked off if they're not already going? And then when are they completed? Some of the tactics will be just kick off. Tactics have it started. Some will be finished. Tactics. You know what we're doing at the end. Some will be monitoring after it's done. So you'll see those all lined up all the way across. That means workforce also has the same thing. System resiliency. This is one that I just want to point out to you that the bottom go there, 3.4 is complete. The infrastructure for LME 2.0 and that's what I was alluding to. It's on our goals. We certainly want to see it happen. We need to be able to budget for it. That happened on schedule. Each of these has the same type of thing. So you'll notice on the bottom of this one, the last one has to do with cybersecurity. So that's a whole area that we have very specific goals in and that's an area that hopefully you are. Very aware of and and you want to make sure that we do meet certain standards. Yes, I did have a question of that about that. The fact that it is the last school on the list doesn't doesn't is not a reflection of its importance to the system, because I think that is it's something that, you know, not just our city but our nation needs to needs to address is cybersecurity threat to our various utilities. It has absolutely no relationship to the priority. They're all equally as important. You know, they are not listed in any particular order. Yeah. And as it is, I mean, you've got two things that are. Initiatives that are going to be delivered, I guess, in the fourth quarter or fourth quarter of of of this fiscal year 2015. Oh, you got some things that are coming up on that. Oh. So you'll notice that they really are spread out. Some of them are going way out into the future, some are closer and we're looking towards end dates on them. So. If you want to look in terms of importance, is what are we doing right away? It's probably, you know, the way to look at it. So on that chart, though, when you look at your cyber security, you do have two things I just want to reiterate, but number day, I was saying so cyber security is a high priority. You do have two things coming up this year. Okay. What we already have in place in cyber security is we have a cybersecurity consultant who's working with us who is doing periodic audits of our system. And so we get real time information and works with us immediately if there's any kind of a problem. We also have our policies in place that are consistent with the policies required by our regulatory agencies. So this is over and above that. What else are we doing? Okay. I have a quick question and I don't need a quantitative answer, but going back to the air load, the projected demand sheet, that's the red line over the is the Coast Guard boats and also the the marriage ships. Does that have a significant effect on the red line or is it just is it marginal? Yes, they are. Some of our bigger customers. Yeah. You know, when we look at commercial customers, they are some of our biggest commercial customers. So when we look at the the fleet boats that are out there, those take a huge load. And then also Coast Guard base does, too. So and to be sure, I'm not saying we don't want them as customers. I'm just saying if you adjusted the red line to account for that with the red lines suddenly be a little the new orange is. I don't know what percent. You know. I don't know. I don't need a quantitative. It's just something that crossed my mind. I just know if we look at our bigger customers, they're up there. Yeah. Yeah, they represent two of our very largest customers. Yeah. And so, yes, it's. It's a fairly substantial percentage. It's. It's less than ten, but more than five. Okay. Okay. And I have to be careful in terms of what we actually exactly say in public. But but it would make a difference. It's it's it's good solid load for us. So we like to have it there. Yeah. Okay. Thank you. One of the things too, when you're dealing with loads like that, if we have predictable solid load and you can, that's easy to plan for and also helps us in the planning for the rest of it. Well, there's a good story behind that, too, because in the late 1980s, the Navy had asked the city of Alameda Bureau of Electricity to make significant investments, which they which we did. And then now with the expectation that we know we're going to need to have contracts to have a ready source of energy supply. Well well, you know what happened? We entered into those contracts. We have the base closed. Yeah, we lost a big chunk of our load, and now we're growing it back. Yeah, essentially. Thank you. Yeah. Okay. Energy resources. This is some of what we've talked about before. This goes into how we're handling all the things and looking into the storage and the electric vehicles and the generation, the local generation and all of those things are assigned to specific individuals who will be coming back to us with reports and plans and things over the next two years. And then financial and organizational stability. This is a big item for us. You know, we have to plan to have the cash on hand. And because of having to always pay for the power on a regular basis, large amounts of money, we always have to have a certain number of days cash on hand. And that's why part of our policy is that we have 145 days of cash on hand, and it's mainly to pay the power bill and keep things running because we can't just turn off the lights and go home. The other thing we're looking at is a cash neutral budget goals 6.4. We have been for the last several years relying on some of our reserve funds, not large amounts, but we have been taking small amounts out of reserves. We want to be cash neutral so that we're not taking it out of reserves where we can use the rec reserves or things like that or the underground utility reserves. We use those, but not take it out of the regular reserves at this point. When we look at some of the capital improvements, we will have to take some funds out of there. So that will be a separate addition to our budget to do that. But we want to really keep our budget cash neutral at this point. Any questions on that? Okay. Any questions in general? Well, I'd just like to comment that I found at so many levels this discussion was so fabulous in terms of like, you know, discussing the supply or the demand. And also, you know, you discussing the game plan that you have, the different goals and strategies and initiatives and the timetables. I meant it. It sounds like, you know, you've got a roadmap ahead of and I think because you touch every single one of Alameda residents and businesses, I think they should feel confident that we're we're moving ahead in a conservative, thoughtful manner. I want to assure you that we have a great general manager, very effective people on our board, and that we have great employees right now and we have some new ones that are up and coming. We're training people, so we're trying to make this a very sustainable organization far into the future. And I'd just like to thank the mayor and the city council for the time to present this and also invite you to any of our workshops you'd like to come to in the spring. We do have a budget workshop and we usually do some planning later in the year. So we'd love to have any participation, anything you'd like to participate in, come and work with us in the workshops. And you know, we can share the most current information with you. And just remind us. Mr. Eaton when I was at the town hall meeting, you did. I think there are others that are that will be taking place on these different topics. Do we have any dates for those yet? It's okay because if. There are dates and I can't quote them. Then well, even when you know, or maybe Mr. Staggered, as we can always we can always help get the word out. We have two more town hall meetings, one in September, and I believe September 21st. I think it's close. Plus. Or minus. And then another one in November. The one in September will focus more on the community solar initiative. And then the one in November will be kind of a a summary plus looking at integrating rates. And, you know, will those be in the library also anticipate. At the current time? That's our plan. Yes. Right. And I do want to add that member Desai and myself were able to attend that meeting also. And there was huge community participation. This is, as we all know, an issue that our meetings are interested in. So I look forward to attending those meetings and your continued efforts to balance all of this. And this was an amazing presentation. Thank you. Thank you. Thanks. I met. You. All right, next item six SI. Presentation of Alameda Recreation and Parks Department Fiscal Year 20 1415 Annual Report.