Utilities Commission - Planning Committee - 2026-04-16
Meeting Intelligence Preview
Meeting Summary
The Utilities Commission Planning Committee received updates on the campus realignment and modernization project, which is evaluating options for consolidating three utility campuses. Analysis indicates that leasing surplus land at the current headquarters and Spring St. sites while leasing office space offsite (potentially at Kilroy or Long Beach Transit's airport building) could achieve cost neutrality for ratepayers. The committee also received updates on the Orange Avenue Pipeline Replacement Project using pipe bursting technology and a groundwater augmentation study identifying injection and extraction well sites.
Key Decisions (4)
Campus Realignment and Modernization Update Received
Committee received and filed presentation on three-part strategic framework for campus project covering design cost-benefit analysis, land management including Surplus Lands Act compliance, and fiscal impact on water, sewer, and gas ratepayers. Analysis shows scenario combining Plan 3 (consolidating onto Redondo water treatment plant site) with offsite office leasing comes closest to cost neutrality. Estimated $7 million in operating cost savings possible. Project will be presented to full board at second meeting in May for educational purposes.
February 5, 2026 Planning Committee Meeting Minutes
Committee approved minutes from the February 5, 2026 Planning Committee meeting.
Orange Avenue Pipeline Replacement Project Update Received
Committee received update on replacement of 2,770 linear feet of 80-year-old 20-inch cast iron water transmission main on Orange Avenue between Bixby Road and Wardlow Road using pipe bursting technology with HDPE pipe. Project estimated at $2.1 million versus $3.7-4 million for open cut method. Bidding planned for early May 2026, construction September-November 2026.
Groundwater Augmentation Study Update Received
Committee received update on $1.86 million groundwater augmentation study with HDR consultant, cost-shared with Water Replenishment District and Metropolitan Water District ($500,000 grant). Study identifies five feasible injection well locations in Long Beach and Lakewood area adjacent to Metropolitan's planned Pure Water alignment. Goal is to increase local groundwater production to 75% of supply (43,500 acre feet versus current 33,000 acre feet allocation). Study completion expected summer 2026.
Development Activity (3)
Utilities Campus Realignment and Modernization
Three campus consolidation options evaluated: Plan 1 at $225 million uses Redondo and Spring St. sites; Plan 2 similar cost with different intensity distribution; Plan 3 consolidates everything onto Redondo site with higher cost due to 720-space parking structure. Total building need approximately 220,000 square feet split between office and warehouse/industrial. Considering leasing 60,000 square feet of office space offsite at Kilroy building or Long Beach Transit airport building.
Orange Avenue Pipeline Replacement
2,770 linear feet of 20-inch cast iron pipe replacement using pipe bursting technology with HDPE pipe. Six excavation pits required. Project cost $2.1 million. Construction duration 2-3 months with actual construction approximately one month.
Groundwater Augmentation Program
Five injection well sites identified adjacent to Metropolitan Pure Water alignment. New extraction wells planned for West Coast Basin near J. Will Johnson Tank Farm. 22 miles of collection system assessed in approximately 100 pipe segments. Goal to increase groundwater production from 33,000 to 43,500 acre feet annually.
Market Signals (4)
Commercial Demand
Industrial R&D space commands higher land residuals than residential in Long Beach, with strong market for modern R&D industrial development at surplus utility sites.
Commercial Demand
Current market conditions favor leasing office space over building, with Kilroy building across from utilities headquarters offering full gross lease options.
Infrastructure
Metropolitan Water District investing in Pure Water pipeline alignment through Long Beach area, creating opportunities for groundwater injection well siting adjacent to new infrastructure.
Housing Demand
California Surplus Lands Act requires 15% affordable housing deed restriction on any surplus government land sold for residential development, significantly impacting land residual values.