Asset Investment Planning for a more Sustainable California

Welcome. Welcome. Welcome. Thank you all for being here, as the introduction had mentioned. I am Matt Smith, and we have Ben Mueller as well. Considering it is the end of the fiscal year, Thursday, before we start, a new year next week. Thank you. And, also to everybody that is, in office this week, we sent out about, I think probably about thirteen hundred invites or so and probably got about two hundred or so bounce back saying, hey, I'm gonna be on vacation, through July fifth. Wasn't anticipating people taking vacation this week, but, absolutely excited to have, those that are in attendance join us. I promise you it's gonna be, you know, worth your time and, you're gonna get a lot of information you know, from Ben and myself. And so, you know, we're gonna talk about, you know, kind of the critical issue that affects all of us in, asset investment planning. You know, a few house key keeping items, in addition to what was already mentioned, This is gonna be a ongoing series. You know, the hope is, you know, this is our first one where we're gonna talk about asset investment planning and how it, pertains to California based, sustainability goals and initiatives. But then over time, We already have two or three lined up clients, in the future that are gonna come and start sharing some best practices, some of the projects that they're working on so if even, you know, those in attendance today, if you can't attend in the future, you know, please sign up. If you see, another one, we're gonna be doing those about, quarterly or so. We're also gonna have various polls throughout. Definitely would encourage people to answer some of those to the best of their ability. You know, it'll help us drive some of this conversation and some of this dialogue, for Ben and myself. So with that being said, let's go ahead and get started. With our first poll question, and it is, you know, what grade would you give your organization's infrastructure? And this is based on, I would say, overall condition across various asset classes, you know, your capacity, your maintenance, and your various, infrastructure categories. So just take, about thirty seconds or so. Think about it. And then go from there and decide, you know, hey, are we an a? Are we are we an f? You know, please feel free to kind of you know, kind of click there and we'll give everybody just a few minutes to answer and get into the the next, next slide. Okay. K. Moving on to the next slide here. Looking like a few c's, couple of these. Wonderful. Okay. So the reason we ask that is, you know, I think the why for today is is a good place to start. And it really just boils down to America America's infrastructure. You know, before we jump into asset investment planning, You know, I think it's important to level set, you know, the why we're here. And I'm sure most of you in attendance feel this more than most. You know, the alarming state of our neigh our of our nation's infrastructure, you know, highlighted in the top left here with sort of a a c minus. You know, this is coming from the American Society of Civil Engineers Infrastructure Report card, and these, grades are given based on overall condition, and maintenance as I had mentioned earlier, on the various, infrastructure categories. So that c minus grade signifies that our infrastructure is honestly in a mediocre state, you know, with significant diff defi deficiencies, and and then becoming a growing concern. So if we narrow that down, you know, to California where we're all at, you know, you can see some of the grades aren't much better. You know, you look at water specifically. You got aging pipes outdated infrastructure, you know, contribute to a frequent you know, water main break, leaks, water quality. You know, the environmental impact is obviously significant, and the financial burden falls on to municipalities and, anti citizens. So in conclusion, you know, the C minus grade, you know, assigned to America's structure. I think serves as a a really good wake up call, highlighting kind of the urgent need for invested in prioritization. And failing to address these issues, not only compromises, you know, citizen safety, but, you know, quality of life, but also puts, you know, our nation's sort of competitiveness at risk. I think it's important that we come together and to, address the crisis and ensure a a brighter future. So, you know, now that we kinda understand, hey, c minus, we got some infrastructure challenges. You know, I think really what we're seeing is you know, a speed of change. And a lot of communities and municipalities are trying to be a part of these changes. You know, California, obviously known for its forward forward thinking approach, you know, has developed a comprehensive strategy to combat climate change. With, simultaneously tracking infrastructure, tackling infrastructure challenges. So, you know, California's climate plan, encompasses a range of initiatives and policies aimed at reducing greenhouse gas emissions, promoting renewable energy, and improving overall sustainability. And, I think this comprehensive approach aligns with the state's commitment to addressing infrastructure issues, you know, through innovative and environmentally conscious strategy fees. And California, in particular, you know, the state, you know, has passed down some pretty aggressive, you know, carbon reduction goal a lot of them, you know, net zero by twenty thirty for some cities, twenty forty five, for the state. And, you know, the state's like, yep, We're on board. You know, you have municipalities being like, we're on board, citizens within your community. Yep. We're on board. And, you know, councils are pushing you know, these initiatives down to facilities, public works, finance departments, sustainability departments, and the departments are like, How are we gonna get there? And public works and facilities and sustainability and finance departments are like, yep, that's a great question. And if it was something easy to do within a year, they would probably have made the goal a year within a year. You know, these these are measures that are put into place you know, they they make a financially viable option. It's going to take the whole ten to fifteen year window And because, you know, what you think, you know, municipality sorry. Because what if your municipality that just installed a brand new natural gas boiler. You know, your public works has been saying, hey, for years, we, you know, we need a new boiler. We need a new boiler. They install a new gas boiler five, six years ago, and you just paid two hundred fifty thousand dollars for that boiler. And now you have this net zero initiative, and you're gonna have to get rid of all natural gas natural gas stuff. And so you can't just throw it away. So now you gotta look at the boiler and plan for its replacement fifteen years later. On top of all the other natural gas assets. So how do you prioritize those? So you go, you get to the modeling and you manage not just one natural gas boiler, but all of your sustainability initiatives in a strategic manner. Maybe just not, you know, decarbonization, but then also, you know, why riding of roads to help with, more, you know, encourage more, you know, you know, bike lanes and, you know, e or at, you know, including EV adoption by adding more EV charging station. This is a long winded way of saying councils and boards have signed up municipalities for these goals and these targets and it's, it's on sort of the working person to figure out how we're gonna get there. And there's no easy path. I don't think anybody here would say that there's an easy path or one path, you know, that's gonna make, you know, help you hit your sustainability goals. You literally could have seven to ten different ways to get there, and they're all viable options. You know, I haven't seen an organization chart a path yet to net zero or another sustainable goal that didn't include, you know, contracting out with consulting firms or increase internal hiring, you know, for some of this long range planning. You know, so you got these targets. How are you gonna get and that's sort of what we're gonna be focusing on today. So thinking about this, And and I'm sure everyone's gonna say, hey, sustainability is very important, especially if you're attending today. If you're here, I'm assuming it's very important. But during your planning process, and when you're thinking about your long term multi year plan, where that's five, twenty five years out, is sustainability part of that planning planning process? Is it part of your capital improvement process? Is it part of maybe your strategic asset management process. And for with most organizations I talk to, I think we're in early stages of Hey, we know it needs to be. We're building out these ideas of what we how we think we should shape it, but we're not quite there yet. We're still sort of in those early stages. And so, you know, I'm getting some answers here. Very important. Obviously, you know, few somewhat importance. So, you know, you know, thank you for sharing there. But you know, let's dive in to, you know, asset investment planning benefits and some challenges here. I think we should start, especially in today's Dan Age, you know, what is asset investment planning? And according to Chat GPT, I was just a little bit curious, so I put it in there. An asset investment plan is a data driven capital plan that allows asset intents organizations to prioritize their capital budget in an effective or an efficient justifiable manner. So really what we're getting ready to dive into is it's gonna be the combination of your total expenditures. And the process of identifying prioritizing and optimizing investments into your assets to achieve to achieve a desired outcome. And gonna be combining your CapEx and your OpEx and which enables organizations to make more informed, investment choices by considering various factors. You know, what is the asset, condition, the criticality, the, you know, maybe risk min mitigation, but want everybody to be thinking about this process in the lens of sustainability. So analyzing asset data, evaluating investment options, and developing investment plans and also talking about how we can leverage technology to help, evidence based decisions and improve some transparency. So right now, just a little bit curious, how familiar are people in the audience with the concept of asset investment planning. Yeah, I'll be honest. It it's it's a newer concept, for me over the past year. So, very familiar with strategic asset management. You know, for all the, you know, finance, you know, finance directors and other, you know, finance personas, you know, in attendance today. Was that GFOA a couple weeks ago you know, major, emphasis on strategic asset management, which is, you know, which we're gonna kinda dive to hidden here a little bit But, you know, so I think basic understanding is, is pretty good. So let's let's focus as I'd mentioned. So was that the GFOA conference? Attended a lot of sis, sessions. There was actually a four hour long training session around strategic asset management. And I think to understand asset investment planning, you'd need to have an understanding of strategic asset management as as a whole first. And this is gonna focus on your overall management and optimization of your assets to achieve long term long term organizational objectives. Okay. So what does that mean? Right? Hey. Let's just we'll keep, keep things simple, Let's talk about decarbonization. Hey, we we as a city, we as a community, we wanna be, we wanna be carbon neutral by twenty thirty five. Right? So that is going to be our, you know, that is going to be our long term investment strategy. We want to be carbon neutral by twenty five. And, you know, so that is gonna be a long term goal. It's gonna take some time. It's gonna take some energy. Is gonna, you know, the scope and the focus is gonna be a lot more strategic planning, decision making, coordinating, of various activities to minimize those risks, hey, we're not gonna install a natural gas asset if we're trying to go carbon neutral by two thousand and forty five, which I think, most organizations probably kinda have a a DC handle on that. You know, the time horizon's a much more long term perspective, and the decision making process is gonna be, you know, involve more high level. You know, you're gonna have finance teams. You're gonna have public works. You're gonna have, executives, you know, internal stakeholders, and also external stakeholders. Right? You're gonna probably wanna get some insight from your community to build these, you know, this long term, you know, strategic asset management plan. But part of that strategic asset management plan is gonna be filled up with a little bit shorter goals. And that's where asset investment planning comes into play. So asset investment planning, right? Scope, you're still gonna be analyzing and optimizing. But really it's gonna be a much more, you know, shorter term goal to help with the the the larger picture here. So, again, keeping in in line keeping in line with our, keeping in line with our, at, you know, our, example of decarbonization. If we wanna understand how to, you know, go carbon neutral or net zero. You know, this right here is an example of a community greenhouse emissions report from from a city. And so if you look at it and say, okay, hey, we wanna be, you know, we wanna, go net zero. Let's look at our biggest, mission hogs here. And and right off the bat, you see transportation. You see natural gas are, you know, are two big, two big components of that. And then you see a few other things as well, you know, off the road equipment, you know, electrification, you know, some of the, you know, HV, HFCs and some solid waste there. But You know, so if you look at that, you know, the obvious statement is, okay, hey, cool. Let's let's work on transportation and let's work on our, you know, on natural gas. But, you know, you can only encourage, you know, your citizens, hey, if you have a a fuel burning vehicle, let let's switch to an EV. Right? Like, sometimes within a city or within an organization, there's gonna be things outside of your control. So maybe just identifying some of that low hanging fruit. So even though transportation, you know, there's grant there's grants for EV, charging stations, you know, definitely steps in the right direction. But, you know, looking at that natural gas, a lot of that will, you know, potentially be coming under facilities and, you know, buildings within within the cities that you know, you could essentially start, you know, leading by example. And so, you know, that decision making process gonna be not necessarily as wide or as big, but it's gonna be, you know, finance, asset managers, capital planning departments, and all of that is going to kinda come into this sort of visual. And I think this gives us a great, just perspective of what asset, investment planning is at its core. Because this honestly helps me sort of convey to those that may not necessarily understand. You know, many active intense organizations have invested heavily in technology and to streamline business processes and to support or, you know, operational asset management decisions. So think of your enterprise asset management software. You know, whether that's, you know, a CMS system, you know, that's more of your operational data. So if you look down and sort of the bottom right of the, investment delivery, those your operational expenditures. So if looking at this, you know, are at the top strategic asset management organizational direction that we've decided carbon neutral by two thousand and forty five. Hey, armed asset investment plan, we need to start understanding not only our operational expenses, but also our capital managers around sunsetting natural gas assets. And if you look, that car, you know, that carbon neutral by twenty forty five on the right, we're looking at a one to twenty five year window there. You know, and your asset investment planning strategy is gonna be either monthly or yearly because you can tackle that, you know, in in a kind of a given time frame there. So, you know, this enterprise asset management, you know, system, you know, tends to focus on that operational data as I mentioned, And, you know, for kind of weekly, monthly maintenance planning, you know, and some of that supply chain and work work management all supported by what I hope a lot of organizations have in an asset registry, talked with a, a city this week, actually, and said, Hey, you know, you have these goals, you know, where do you is your asset registered currently, like, where is it? And asked them, you know, is it within their, enterprise asset management system? And surprisingly, it wasn't. It's in an Excel spreadsheet on the finance team. You know, so think of thinking of that boiler if we have a hundred boilers, and we just invested in that one, you know, five years ago, it's brand new. It's cooking. It's great. You know, we're definitely, if of those hundred boilers, maybe we put that towards the end. But now you have ninety nine boilers. And, you know, how often are you fixing those boilers? Which one of those are constantly causing headaches for your, you know, facilities team or your public works team. You know, without that operational data and those operational expenditures, you're not gonna know. And you may be looking at finances that say, Hey, this one boilers cost us sixty thousand dollars, we need to replace it tomorrow. But then if you go and look at the the work history, it's, oh, actually, no, we we made some major upgrades, and that's why we actually pretty good life life on this. Maybe we make that boiler number, you know, the second to last boiler we replace. So without having that sort of total picture, it's often hard for cities and counties to really kind of, invest in sort of this asset investment plan. So You know, again, you know, many of this data either lying in one database or in a Microsoft Excel, and or honestly, we're most you know, some of the some cities I talk about, it's a lot of institutional knowledge. Hey, we need to go and and and replace this. Why? Because it's been giving us a bunch Well, how many headaches has it been giving you over the past two or three years? A lot. Okay. That without data, it's just somebody's opinion. So having, you know, a commas per common practices to determine which assets require what capital expenditures and that operational expenditures organizations typically, you know, segregate budget planning for their CapEx or their OpEx. And what I'm really trying to, if I haven't hammered it in already, is just looking at combining that data and combining that to better understand the total expenditure. You know, So running with sun setting of natural gas assets, you know, I think we're gonna kinda keep that theme as we kinda go through this. So you know, let's talk about some of the challenges. You know, we've sorta, I sort of highlighted them, as we've kinda gotten going here. But there's three big challenges that I I kind of siloed them into buckets of, you know, data quality, organizational silo siloing and resource management. So of these challenges, I'm just a little bit curious. You know, what do you face in your asset, you know, what challenges do you face in you would you say in your asset investment process. And, again, if you don't have an asset an asset investment planning process currently, maybe one of these is the reasons why. Like, hey, we, you know, we don't have the right data or, you know, sustainability is doing one thing, and they have all their goals, and that's great. Public works is doing their thing and and finance has, you know, their their eyes on something else. You know, again, it there's no wrong answers. It's just, you know, sometimes you know, these processes take a little bit of time, and it takes everybody kinda rolling the oars in the same direction, to help get the the boat moving. So, seeing a little bit of organizational siloing, you know, some data quality. You know, I me personally. I think data is one of the biggest challenges, but I'll keep that to myself. But yeah, okay. Great. So challenge number one. Let's let's talk about data quality. You know, so we talked about CapEx. We talked about OpEx. You know, for those that, you know, mentioned as a data as one of their challenges, I'd say typically from what I hear, this I think is the most common. You know, re as of recent, I think resource management is up there as, you know, skill it's hard it's difficult to find skilled labor labor having to outsource things more and more. But, you know, there are industry experts to lean on, but data is is is so hard to manage because honestly, not many people like talking about data. But it's important because it helps drive some of these decisions. So, you know, by by, I think, addressing some of the the data quality issues, organizations can enhance the accuracy and the riot reliability their at of their asset information. So when it comes to addressing, you know, aging infrastructure, you know, that data quality issue is essential for informed decision you know, decision making processes, effective planning, and, you know, effective resource, allocation and utilization as you're building out the sustainability time. And if you look on the top right right now, I actually went and found one organization, that I saw at at GFO had an awesome, asset investment plan and This was all the sources of information that they pulled from to help build the plan. And if you look, I mean, you they're looking at tangible Casa, tangible capital asset inventory. They're looking at playground inventory assessment. They're looking at internal equipment replacement plans. They're looking at all of these various plans to better understand, okay, hey, when do we need to start sun setting certain assets? When should we be starting these various projects. Definitely don't wanna get it confused with, you know, a capital improvement plan. You know, and this and thinking about this being more so of, focusing on sort of the those assets that we may be able to help with this, various sustainability goals. So, accurate and comprehensive data, insurers municipalities have clear understanding of their condition, maintenance history and remaining lifespan of their infrastructure assets. So if you don't have your, hey, when was something installed, what is the make maybe what the model is and and having, you know, how much would it cost to replace this? If you don't have that data against one of your assets currently, And it's not in a living breathing asset registry that when people make updates or do work orders and it's making updates, you know, you're not really having a true, you know, asset investment plan that's living and breathing. It's okay, Hey, we did this last year. And now this was our plan. And, yeah, okay. Maybe things have tweaked a little bit, but maybe they've had a few, you know, catastrophic failures. And now things have have shifted, and that wasn't conveyed to that Excel spreadsheet sitting in the finance department. So implementing, I would say data validation processes and investing in data management type systems, you know, establishes better data governance practices. And really what that says is you just you're gonna have better, credibles information, to help improve, you know, more informed decisions and reduce risk of errors, you know, caused by some of that unreliable data. And, you know, if you would have hopped on today and said, hey, you know, one of our biggest challenges with our sustainability, goals is data. I'm sure you the person that you're telling this to is like, that doesn't sound right. It's like what I don't know. Actually, it probably might be. So let's jump to number two. Organizational silos. This one I think is a combination of of sort of the data, with sort of resource management. You know, If you think about your various departments, divisions within a city, municipality, county, you know, organizational silo is often to revert refer to as sort of the isolation and compartmentalization, that administrators and other departments often operate independently. Right? Everybody's staying in their lane thinking about their their goals, their objectives, not in necessarily sometimes thinking about the bigger picture. Hey, no. I did. I did. Hey, we're gonna need a million dollars for capital improvements. Great. Cool. Here's you have five hundred thousand dollars go. Why do I have five thousand dollars? What is this? What is what are we able to do here? So these silos can impede the, I think, the necessary coordination and, comprehensive approach required to address aging infrastructure, efficient, efficiently to help with some of these sustainability goals. And if you look, again, this is this is various master plans. Right? You know, you have your facility master plan. You have your stormwater master plan. You have your transportation master plan. All of these departments or divisions have their own master plan. And, you know, it's easy to say, okay, cool. We're gonna work, you know, focus on stormwater needs this. Transportation needs that without necessarily thinking like, okay, hey, you know, maybe if we're having to pick up some of these pipes and transportation is having to do a few a few of these projects, we can, you know, save a dollar or two and, you know, mirror these projects at the same time. So just thinking of, like, all of the various plans that are out there and not just keeping them, okay, hey, we're gonna money, put money here, put money there, put money there. And so in, you know, kind of going back again to the previous slide, you know, effective data integration and technology can play a role, in breaking down some of these silos and improving sort of that asset investment in asset investment planning and, you know, the key strategies are, you know, implementing inter integrating data systems. You know, I would also say embracing technology as well. And just having the ability to understand what other, people are doing on the other side of the fence. Challenge three, skilled resources, and I think right now, there's there's two buckets cities and counties can kind of fall into. And, you know, you can either improve and sort of uplifts internally. You know, training and professional development on, you know, maybe best you know, data quality practices, right, understanding what asset investment planning is, understanding what some of these sustainability goals are. You know, and and uplifting and and getting your, you know, getting that worker in the field to say, Hey, I'm gonna go in collect this data so then we have this information on this natural gas asset to help with our decarbonization initiative. You know, and sometimes there's just not enough bandwidth within an organization in order for the order to make that happen. And so you know, as I mentioned earlier, I think more and more cities are having to rely on third parties to go and collect and help with some of these with these planning efforts. Simply because this, they don't have the time or the resources to do so. And so, you know, investing in development of skilled resources can definitely signify and improve that asset mint, asset improvement, investment planning process And organizations can provide, as I mentioned, training, professional development, to enhance the capabilities of their staff and, you know, with only asset management, but then also long term planning. And, you know, considering some of these partners with, you know, external consultants, you know, they they're experts in their field, and they have skilled resources that enables your organization to effectively analyze data. Hey, maybe it's a combination of both. We know that, you know, we have, you know, hundred buildings. We need to go and collect ass, you know, asset information, but, you know, we don't have enough money to go and do all hundred buildings. So we're we're gonna look at our utility consumption and our natural gas, our natural gas bills. And these fifteen are our highest, you know, our our highest natural gas talks. So we wanna go and and identify these assets and then figure out those conditions, then we can we can build a plan about replacing them. So, you know, sometimes it is a combination and marrying of, hey, you know, just because you can't do all of it doesn't mean that you shouldn't do something. So, again, integrating some of the, you know, we've been talking about some of the challenges. We've been talking about, hey, what is asset invest planning. So let's talk about some of the, sustainability, you know, projects or some of the criteria that we can be thinking about, which I'm sure a lot of you are within the audience. You know, this is this is areas that I think are probably top of mind for most, you know, climate action reduction of overall greenhouse gasses and grasses. We've been talking about it most of this webinar. Electrifying of buildings, you know, similar similar vein there, increasing, increasing active transportation. You know, supporting EV adoption, you know, preparing for climate change. Hey, wildfires. One thing we haven't even talked about just because we're talking about what we're doing today to to help address the the aging infrastructure doesn't mean that we shouldn't be also talking about what we should be doing to prepare for rising seas, these, you know, for for wildfires coming, or that are constantly. It Ben talks about all these, you know, hundred year storms that are now happening every five years. Right? Like, it the the the climate change is very real, and we're feeling some of those effects. What is your city or what is your county doing to to kinda help prepare prepare for some enhancing biodiversity, plant more trees. You know, I talked to one I talked to one organization. They are supporting a tree farm down in Mexico to help with their natural and to offset their, natural gases and help, you know, help Netzero that way. So, you know, just because you don't have the space within your area doesn't mean that you can't help the, you know, your neighbors down south or or or all over the world. You know, supporting zero waste and then also improve water systems. I think this year, especially with the amount of storms and waters, there's, you know, I think now more than ever people have realized that, you know, maybe the infrastructure that we have around all of this needs to be improved upon. And people have been saying it for years, but now, you know, sort of the wake up call sort of happened. You know, again, these are the key issues. And again, these are just a few key issues that we've sort of identified on this on this conversation today. And I I it's not necessarily means you don't have your own sustainability goals or your own sustainability, ideas, but I think just talking with clients and talking with other cities and counties. And I think in an area that we've placed a a strong focus on transitioning to renewable energy resources and up grading their power grid. You know, the state has implemented ambitious renewable energy targets. So fostering the growth of solar, wind energy installations, you know, by moderate modernizing, expanding the power grid, you know, California, I think, is ensuring sort of a reliable and resilient energy infrastructure, that can better withstand some of these client related challenges, you know, such as those wild fire fires, you know, with also reducing some of the greenhouse gas emissions. So yeah, those are, again, just a few of those. I think now would be a good time, to kind of transition and look at some of these sort of long term plans and look at some of what we could you could be presenting to you know, some of those internal stakeholders or some of those community members that might be having questions and just helping them understand the challenges that you're facing to not, you know, we can't just flip a switch and all of a sudden, you know, we're carbon neutral or flip a switch and all of, you know, all of our our pipes underground are where they need to be and and you know, we have improved, you know, active transportation. Right? So I'm gonna turn this is where I'm gonna kinda turn things on over to Ben to kinda walk through some of these examples. And again, please I'm sorry I haven't really been paying attention, but if you have any questions, you know, we'll be doing our best to sort of answer those. You know, at the end or or as we're kinda going through here. So I'm gonna turn things on over to Ben, and we'll go ahead and get started. Thanks, Matt. So just to continue on the messaging that, that Matt's been presenting, today. I I just wanna kinda show you visualization of of of how you can use tools to to communicate to, the decision makers, whether that's council, board, or just internal. So how how things have historically been done is obviously in a PDF document or in Excel and being able to say, here, here is the projects that I'd like to move forward with. But one thing that is has been a struggle to communicate is the the long term impact of that. So this this screenshot is just showing you a visualization of what the world will look like in a, in an organization in ten years time. This is looking at, underground assets, but You can see that the top left corner is a point five percent replacement value reinvestment. So that just means that say it's worth, a hundred million dollars than the network. You're you're reinvesting year over year. Just point five percent of that. So that's five hundred thousand. And then it's it's incremental. There's a one percent option. There's a one point five. There's a two point five percent option. So logically, you can see that as you reinvest more money, you're gonna get different outputs. And obviously, the the more you invest, you're gonna improve the net work. But, if you wanna incorporate, a lot of the points that Matt was, been going on about today and tying it to your strategic objectives, you gotta you gotta start looking at, those items. So this is the exact same type of report, but now it's taking into effect risk, as well as, other aspects. So if we if we focus on what risk is in this model, so once more, this is underground assets, so what risk is in here is, those long term events in terms of the design life for a certain pipes was related to seventy years, hundred year storm events. And now we're finding that, due to climate factors, We're actually seeing those events occurring in five, seven years. So these pipes that used to be sized in in a suitable capacity, they're now no longer meeting the standards. So they're overflowing, they're causing, environmental issues, but so now it's it's changing how you reinvest in in your asset. So it's it's not just replacing like for like. It's it's looking at the different options available and focusing on those assets that are causing the greatest impact to to your long term sustainability. In a in a different lens, it could even be. Maybe you're you're experiencing a lot of growth in a certain area. So there's more impact on the network. So it might be a lot of people are moving in a specific area and there's a lot more population density. So sustainability in relation to that would be, putting in utilities that suit that suit those people that say ten thousand people moved into a small area, and now you need to provide services that suit them. I'm also talking, continuing along that model of, underground assets, like looking at different pipe networks that, the impact is as they, go across a bridge or they need waterways. So if you have assets that are going across a bridge, there's more impact on those being overflowing and going into River so there's environmental impacts of that. The other one that Sorry. I didn't make it into the slideshow. Sorry. I overlooked that, but I was told it was talking about electrification of assets. So Matt spoke about the examples with, the boilers earlier, but it's looking at the impact of not just replacing like for like, but looking at the long term impact of, going looking at your gas fired assets, and and replacing them with more electric assets. And and then looking at the impact that has on not not only the overall condition, but the budget needed and the risk going forward, And then obviously in in relation to that, electrification has other impacts in the sense that just because you electrify a boiler, you're you're just moving where the carbon impact goes. So the carbon is actually now you're putting more impact on the grid, so then you need to, also look at, improvements around the grid and look at different power supplies. So it's not just looking at the isolation of what you're doing in your community, but looking at the grid and network in the greatest state, the California. So we'll click to the next one, pass it back to Matt. Yeah. And I think, you know, This isn't gonna just happen overnight. You know, as as as been kind of showcase with, you know, some of the examples of, you know, what what is certain risks gonna be here. What is, you know, certain criticality gonna be here if we invest this much much there? What's, you know, what's it going to do? You know, so I think having, you know, these are some, planning design principles to kind of think about. As you're integrating some of these, sustainable criteria into some of the key issues that you're trying to tackle. And I'd I said it earlier, but actually I really, you know, focus on what's feasible, you know, technology and and costs are shifting rapidly, inflations you know, kinda through the roof. But, you know, costs are going up. So just focus on kinda what's feasible. But you know, prioritizing actions within the city's control that I think sometimes, you know, a, we're gonna go and do all of these things. But, hey, You know, I was talking with a, energy manager on Tuesday. And he just went out for a grant and for EV station or your grant to get, electrical vehicle charging stations on some of the buildings. And, you know, that is leading by example. If we put in more more stations, we're gonna encourage more people. They see that they have the ability to charge charge their electric vehicles. So, you know, but they can only control, hey, we're gonna put in this EV station. And, you know, the hope is if we do this, we're leading by example, and in that way. I also think, you know, being specific about the actions and the cost to sort of achieve near term goals while accepting that know, long term goals could be a little bit more aspirational at times. You know, you can kinda see in the here and the now that one a five year plan. If we keep doing this, we're, you know, this we're hoping that this long term plan, will come to fruition. And you know, just by at least trying for that, you know, one to five years, you know, that, you know, hoping improving, you know, the twenty five down the road. You know, full cost of accounting, is another thing to consider as we'd mentioned, using total life cycle and cost of ownership, not just hey, you know, this one natural gas asset is, you know, has cost the city sixty thousand dollars. You know, well, the cost is sixty thousand dollars because it's it's been upgraded and improved. So, you know, thinking about that, you know, those, you know, external considerations from other data sources, to help guide some of those financial and, replacement decisions. You know, I would say align initiatives, you know, and, you know, in in other sort of asset investment of public resource kind of encourage what we want and discourage maybe what we don't want. You know, that in getting input from, you know, your inter, you know, external stakeholders. You know, again, flexible, take practical near term steps that expands rather than restrict capacity for, you know, future actions and pivots. Yeah. Being light on your feet, you know, move like a butterfly thing like a bee sorta. So kinda in conclusion, You know, these are just sort of our summaries here. You know, climate change is, is, is impacting and driving change in asset management. You know, and organizations must understand their current condition, have that data, that off, you know, OpEx data have that CapEx data so you can get that total expenditure data. But you, you know, and understand operational and long term. You know, sustainability considerations should be. Step one. What's critical that we need to invest, you know, upgrade? Step two. What's gonna get us sued? Step three. How is this how is this asset, align with our, you know, sustainable or climate action plan? Right? You know, storytelling and, you know, predictive analytics can help engage those decision decisions. Leveraging technology help paint the picture. Hey, here are four options that we think would make a lot of sense and here's the dollar amounts with each option to help promote what you want us to do. And data and analytics as I said earlier, if if you're just that institutional knowledge, sometimes it's great. But if you don't have data to back it up, it's just somebody's opinion so, you know, that that that does provide invaluable insights, you know, to optimize that asset management and that asset invest asset investment plan. Circling back around. This is the first in a series. We're gonna do webinars. We're gonna do road shows. We're gonna do trade shows. And right now, it's just been a me because we're at the forefront of what I wanna be seeing done by rightly in the state of California, and we're gonna start incorporating actual examples with real clients that have done, you know, electrification projects and how they've They basically prioritize planned and got funding. So, again, thank you for everybody in attendance today. Bradley.