Yep. The LA officials stated in the report that there's enough water reserves for 40 million people for a year - the system is connected to multiple million gallon tanks and to managed reservoirs.
The system, however, "was not designed to fight wildfires" within Los Angeles - and the Pallisades area is elevated, which requires more pressure to the water through to the hydrants. There was apparently 4-times the design capacity draw for 15 straight hours. The system relies on physics, which can be overwhelmed - but the most obvious solution would be to put powered pumps on the line - which, of course, would be massively expensive for a system that covers 4,000 square miles and services 10 million people.
Every major disaster reveals all sorts of weaknesses and chances for clear hindsight.