As Los Angeles reels from devastating wildfires, a shocking revelation has emerged.

The Santa Ynez Reservoir, a critical 117-million-gallon water storage facility in Pacific Palisades, sat empty when flames engulfed the area.

This startling fact came to light as firefighters struggled with dry hydrants and low water pressure.

Governor Gavin Newsom has since ordered an independent investigation into the Los Angeles Department of Water and Power (DWP). For our purposes today, here’s a timeline of events…

• The reservoir was taken out of service in February 2024 due to a tear in its protective cover that risked water contamination.

• DWP representatives claim the repair process was delayed by the city’s competitive bidding requirements.

• The utility sought bids for repairs in April 2024 and ultimately signed a contract with a Lakeside, California firm in November for approximately $130,000.

• DWP communications officer Joseph Ramallo confirms the plan was to reopen the reservoir in February 2025.

Questions abound about the state’s preparedness: Specifically, why did it take a catastrophe for Newsom to address this glaring infrastructure issue?

Your Rundown for Wednesday, January 15, 2025...

California’s Leadership: Too Little, Too Late

Newsom’s call for answers rings hollow when basic maintenance languished for months. With California's well-documented wildfire risks, shouldn't officials have prioritized this vital resource?

DWP officials, however, say the water system wasn’t designed for such extreme fire scenarios.

Former DWP general manager Martin Adams suggests the reservoir's presence might have helped, but would not have “saved the day.”

But the utility’s union leader, Gus Corona, doesn't mince words, calling the reservoir’s year-long emptiness “completely unacceptable.”

Mr. Corona believes in-house repairs could have avoided this debacle.

Courtesy: X platform

While DWP conducts “root-cause analysis,” residents are left wondering why basic infrastructure maintenance took a backseat.

Now, Newsom's administration faces tough questions…

Why wasn't there better oversight of critical water resources? How did routine repairs stretch into a year-long absence of a key water source?

As the investigation unfolds, skepticism grows about the state’s ability to safeguard its citizens from known threats.

And Newsom’s call for answers is a reactive measure that fails to address unpardonable neglect. The governor’s investigation might provide answers, but it can’t replace lost homes or restore shattered lives.

As residents sift through the ashes, they’re left to wonder if proactive leadership could have mitigated this disaster.

For his part, President-elect Donald Trump has responded to the California wildfires with sharp criticism of state and local Democratic leaders, particularly Governor Newsom and L.A. Mayor Karen Bass. He has accused them of gross incompetence and mismanagement.

Nevertheless, several sources are telegraphing that Trump will visit California – whether that happens before or after Inauguration Day is unclear.

What is clear? For many Californians, the Santa Ynez Reservoir's emptiness stands as a stark symbol of California’s leadership vacuum.

Market Rundown for Wednesday, Jan. 15, 2025

S&P 500 futures are up 0.35% to 5,900.

Oil is up 0.60% to $78 for a barrel of WTI.

Gold’s up 0.75% to $2,704.30 per ounce.

And Bitcoin is up almost 2% to $98,300 at the time of writing.