Loading...
HomeMy WebLinkAbout07-22-25 EO&WR Committee Packet 1 OTAY WATER DISTRICT ENGINEERING, OPERATIONS, & WATER RESOURCES COMMITTEE MEETING and SPECIAL MEETING OF THE BOARD OF DIRECTORS 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA BOARDROOM TUESDAY JULY 22, 2025 12:00 P.M. This is a District Committee meeting. This meeting is being posted as a special meeting in order to comply with the Brown Act (Government Code Section §54954.2) in the event that a quorum of the Board is present. Items will be deliberated, however, no formal board actions will be taken at this meeting. The committee makes recommendations to the full Board for its consideration and formal action. AGENDA 1. ROLL CALL 2. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD’S JU- RISDICTION INCLUDING AN ITEM ON TODAY’S AGENDA DISCUSSION ITEMS 3. ADOPT RESOLUTION NO. 4460 APPROVING THE SEWER ANNEXATION OF THE PROPERTY OWNED BY SCOTT AND ANA O’RYAN, 3671 AND 3673 CALAVO DRIVE, SPRING VALLEY, CA 91977, APN: 501-282-62-00, TO THE OTAY WATER DISTRICT AND SEWER IMPROVEMENT DISTRICT NO. 18 (KEVIN CAMERON) [5 MINUTES] 4. AUTHORIZE THE GENERAL MANAGER TO ISSUE PURCHASE ORDERS FOR THE PURCHASE OF FIVE (5) FLEET VEHICLES INCLUDING ONE (1) COMBINA- TION SEWER CLEANING VACTOR TRUCK, ONE (1) EMERGENCY STANDBY GENERATOR FOR THE 1655-1 HYDRO-STATION, ONE (1) SCISSOR LIFT WITH TRAILER, WHEN PRICING AND UNITS ARE AVAILABLE, AND TO DECLARE AS SURPLUS UNIT #220 AND ONE (1) GENSET LOCATED AT THE 1655-1 HYDRO- STATION (CHARLES MADEROS) [5 MINUTES] BOARD MEMBERS ATTENDING: Francisco Rivera, Chair Mark Robak 2 All items appearing on this agenda, whether or not expressly listed for action, may be delib- erated and may be subject to action by the Board. The agenda, and any attachments containing written information, are available at the Dis- trict’s website at www.otaywater.gov. Written changes to any items to be considered at the open meeting, or to any attachments, will be posted on the District’s website. Copies of the agenda and all attachments are also available by contacting the District Secretary at (619) 670-2253. If you have any disability which would require accommodation in order to enable you to par- ticipate in this meeting, please call the District Secretary at 619-670-2253 at least 24 hours prior to the meeting. Certification of Posting I certify that on July 18, 2025, I posted a copy of the foregoing agenda near the regular meet- ing place of the Board of Directors of Otay Water District, said time being at least 24 hours in advance of the meeting of the Board of Directors (Government Code Section §54954.2). Executed at Spring Valley, California on July 18, 2025. /s/ Tita Ramos-Krogman, District Secretary STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: August 6, 2025 SUBMITTED BY: Kevin Cameron Engineering Manager PROJECT NO: FILE NO: D1227-090701 ANX-25-002 DIV. NO. 5 APPROVED BY: Michael Long, Chief, Engineering Jose Martinez, General Manager SUBJECT: Adopt Resolution No. 4460 for the Scott & Ana O’Ryan Sewer Annexation, 3671 & 3673 Calavo Drive, Spring Valley, CA. 91977, APN 501-282-62-00, to the Otay Water District and to Sewer Improvement District No. 18 GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) adopt Resolution No. 4460 approving the annexation of the property owned by Scott & Ana O’Ryan, 3671 & 3673 Calavo Drive, Spring Valley, CA. 91977, APN 501-282-62-00, to the Otay Water District and to Sewer Improvement District (ID) No. 18 (see Exhibit C for Location Map). COMMITTEE ACTION: Please see Attachment A. PURPOSE: The proposed annexation is to provide sewer service to the parcel located on 3671 & 3673 Calavo Drive, Spring Valley, CA. 91977, APN 501-282-62-00, in an unincorporated area of the County of San Diego California. AGENDA ITEM 3 2 ANALYSIS: A written request and petition signed by the homeowner’s representative, Elliot May, has been received for annexation of APN 501-282-62-00, located on 3671 & 3673 Calavo Drive, Spring Valley, CA. 91977, in the unincorporated area of Spring Valley and the County of San Diego, for sewer service. The total acreage to be annexed is 0.28 acres. The property is currently a vacant lot under construction for a single family home and accessory dwelling unit (ADU). The property is outside the District’s sphere of influence as well as the District’s Sewer ID No. 18, as shown in Exhibit A. Therefore, annexation of this property to the District and to ID No. 18 is required for sewer service. At the October 7, 2024 meeting of the San Diego County’s Local Agency Formation Commission (LAFCO), LAFCO approved a change of organization to annex APN 501-282-62 into the District. It is recommended that the District Board of Directors adopt Resolution No. 4460 (Attachment B), annexing the property of Scott & Ana O’Ryan, 3671 & 3673 Calavo Drive, Spring Valley, CA. 91977, APN 501-282-62-00, to the District and to Sewer ID 18. The parcel is located adjacent to an existing 8-inch Otay Water District sewer main, which is located in an easement to the north of the property. Water service to the property will be served by Helix Water District. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The property owner has paid the District’s annexation processing fee of $1,031.17, sewer annexation fee for one (1) sewer EDU (current fee is $1,492.97 per EDU), and will pay sewer capacity fees upon annexation approval for parcels located outside the sewer ID (current fee is $10,774.03 per EDU) in effect at the time the service is provided, and any additional fees, including the availability fee, as established in the attached Resolution (Attachment B). STRATEGIC GOAL: Provide enhanced sewer service to meet customer needs. LEGAL IMPACT: No legal impact. 3 KC/ML:jf Attachments: Attachment A - Committee Action Attachment B - Resolution No. 4460 Exhibit A - Legal Description Exhibit B - Legal Map Exhibit C – Location Map ATTACHMENT A SUBJECT/PROJECT: D1227-090701 ANX-25-002 Adopt Resolution No. 4460 for the Scott & Ana O’Ryan Sewer Annexation, 3671 & 3673 Calavo Drive, Spring Valley, CA. 91977, APN 501-282-62-00, to the Otay Water District and to Sewer Improvement District No. 18 COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on July 22, 2025. The Committee supported staff’s recommendation. NOTE: The “Committee Action” is written in anticipation of the Committee moving the item forward for Board approval. This report will be sent to the Board as a Committee approved item, or modified to reflect any discussion or changes as directed by the Committee prior to presentation to the full Board. ATTACHMENT B Page 1 of 4 RESOLUTION NO. 4460 A RESOLUTION OF THE BOARD OF DIRECTORS OF OTAY WATER DISTRICT APPROVING THE ANNEXATION TO OTAY WATER DISTRICT IMPROVEMENT DISTRICT NO. 18 OF THOSE LANDS DESCRIBED AS “SCOTT & ANA O’RYAN SEWER ANNEXATION (APN: 501-282-62-00)” (FILE NO. ANX-25-002/DIVISION 5) WHEREAS, a letter has been submitted by ELLIOT MAY, agent for the owner and party (Scott & Ana O’Ryan) that has an interest in the land described in Exhibit "A," attached hereto, for annexation of said land to Otay Water District Sewer Improvement District No. 18 pursuant to California Water Code Section 72670 et seq., and WHEREAS, pursuant to Section 72680.1 of said Water Code, the Board of Directors may proceed and act thereon without notice and hearing. NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT FINDS, RESOLVES, ORDERS, AND DETERMINES as follows: 1. A depiction of the area proposed to be annexed and the boundaries of ID 18 following the annexation is set forth on a map in Exhibit “B” filed with the Secretary of the District, which map shall govern for all details as to the area proposed to be annexed. 2. The purpose of the proposed annexation is to make sewer service available to the area to be annexed, which availability constitutes a benefit to said area. 3. The Board finds and determines that the area proposed to be annexed to ID 18 will be benefited by such annexation and that the property currently within ID 18 will also be benefited and not injured by such annexation because after the annexation ATTACHMENT B Page 2 of 4 a larger tax base will be available to finance the sewer facilities and improvements of ID 18. 4. The Board of Directors hereby declares that the annexation of said property is subject to the owners complying with the following terms and conditions: (a) The petitioner for said annexation shall pay to Otay Water District the following: (1) The annexation processing fee at the time of application; (2) State Board of Equalization filing fees in the amount of $3,500, if applicable; (3) The sewer annexation fees at the time of connection to the Otay Water District water system; (4) Yearly assessment fees will be collected through the County Tax Assessor’s office in the amount of $10 for APN 501-282-62-00; (5) In the event that sewer service is to be provided, Petitioners shall pay all applicable sewer fees per Equivalent Dwelling Unit (EDU) at the time the sewer connection is purchased; and (6) Payment by the owner of APN 501-282-62-00 of all other applicable local or state agency fees or charges. (b) The property to be annexed shall be subject to taxation after annexation thereof for the ATTACHMENT B Page 3 of 4 purposes of the improvement district, including the payment of principal and interest on bonds and other obligations of the improvement district, authorized and outstanding at the time of annexation, the same as if the annexed property had always been a part of the improvement district. 5. The Board hereby declares that the property described in Exhibit "A" shall be considered annexed to ID 18 upon passage of this resolution. 6. The Board of Directors further finds and determines that there are no exchanges of property tax revenues to be made pursuant to California Revenue and Taxation Code Section 95 et seq. as a result of such annexation. 7. The annexation of APN 501-282-62-00 to the District’s Sewer Improvement District 18 is hereby designated as the “SCOTT & ANA O’RYAN SEWER ANNEXATION (APN: 501-282-62-00).” 8. Pursuant to Section 57202(a) of the Government Code, the effective date of the SCOTT & ANA O’RYAN SEWER ANNEXATION (APN: 501-282-62-00) shall be the date this Resolution is adopted by the Board of Directors of the Otay Water District. 9. The General Manager of the District and the Secretary of the District, or their respective designees, are hereby ordered to take all actions required to complete this annexation. ATTACHMENT B Page 4 of 4 PASSED, APPROVED, AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting held this 6th day of August, 2025. President ATTEST: __________________________________ District Secretary O’Ryan – Calavo Drive Change of Organization LAFCO Reference No. CO24-05 Annexation No. 2025- Annexation to Otay Water District Sewer System Geographical Description A PORTION OF LOT 226 ACCORDING TO MAP THEREOF NO. 2302 IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY FEBRUARY 13, 1946. BEGINNING AT THE NORTHEAST CORNER OF SECTION 34, TOWNSHIP 16 SOUTH, RANGE 1 EAST, SAN BERNARDINO MERIDIAN; THENCE ALONG THE FOLLOWING COURSES: 1. NORTH 22°56’20” WEST 1015.15 FEET TO A POINT IN THE NORTH LINE OF SAID LOT 226 AND AN ANGLE POINT IN THE BOUNDARY OF THE OTAY WATER DISTRICT SEWER IMPROVEMENT DISTRICT BOUNDARY SAID POINT BEING THE TRUE POINT OF BEGINNING; 2. THENCE SOUTH 54°19’05” WEST ALONG THE NORTHWEST RIGHT OF WAY LINE OF AVOCADO BOULEVARD 133.72 FEET; 3. THENCE SOUTH 66°03’05” WEST ALONG SAID RIGHT OF WAY LINE 4.96 FEET; 4. THENCE SOUTH 89°39’40” WEST 99.21 FEET; 5. THENCE NORTH 00°20’20” WEST ALONG SAID BOUNDARY 76.44 FEET TO A POINT ON THE OTAY WATER DISTRICT SEWER IMPROVEMENT DISTRICT BOUNDARY ON THE NORTH LINE OF LOT 226; 6. THENCE NORTH 88°52’50” EAST 212.85 FEET TO THE TRUE POINT OF BEGINNING. CONTAINING 0.28 ACRES MORE OR LESS FOR ASSESSMENT PURPOSES ONLY. THIS DESCRIPTION OF LAND IS NOT A LEGAL PROPERTY DESCRIPTION AS DEFINED IN THE SUBDIVISION MAP ACT AND MAY NOT BE USED AS THE BASIS FOR AN OFFER FOR SALE OF THE LAND DESCRIBED. Sincerely, DATE: 02-21-2025 Elliott M. May, RCE 18592 May Engineering and Surveying EXHIBIT A EXHIBIT B OTAY WATER DISTRICTANNEXATION OF APN 501-282-62-00TO THE OTAY WATER DISTRICT AND TOSEWER IMPROVEMENT DISTRICT 18 EXHIBIT CC:\OneDrive\Otay Water District\ENG PUBLIC SERVICES - Documents\SAMP WSA ANX\D1227-090701 Sewer Annexation 3671 and 3673 Calavo Drive\Archive\Exhibit C-Sewer Annexation-ANX-25-002-Calavo Drive-501-282-62.mxd ANX-25-001 "LS !( !( !( !( !( !( !(!( !( !(!( !( !( !( R$ R$ 03/17, 1198 R O W 5012823900 5012821300 5012825100 5012825800 50128256005012825900 5021504000 5012825200 5012825300 5012825400 5012825500 5021502400 5012824100 5012826000 5012824900 5012825000 5012352800 5012826200 5 0 1 2 8 2 4 7 0 0 5 0 1 2 8 2 4 8 0 0 50123527005012352600 5012352500 5012352100 5012810800 5 0 1 2 3 5 2 4 0 0 ROW 5012352900 5 0 1 2 8 1 0 1 0 0 §¨¦ §¨¦ §¨¦ §¨¦ §¨¦ §¨¦ §¨¦ ÃÅ ÃÅ ÃÅ ÃÅ ÃÅ ÃÅ ÃÅ ÃÅ ÃÅ VICINITY MAP PROJECT SITE DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 !\ 5 8 8 805 805 11 9454 94 125 125 905 125 905 125 NTSF 3671 & 3673 Calavo DriveSpring Valley, 91977APN 501-282-62-00 8" PVCSewer Main A V O C A D O B L V D C A L A V O D R I V E M A D RID W AY Sewer ID 18 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: August 6, 2025 SUBMITTED BY: Charles Mederos, Utility Services Manager PROJECTS: P2282, S2078, P2286, P2688 DIV. NO. ALL APPROVED BY: Andrew Jackson, Chief of Water Operations Jose Martinez, General Manager SUBJECT: AUTHORIZE THE PURCHASE OF FIVE (5) FLEET VEHICLES INCLUDING ONE (1) COMBINATION SEWER CLEANING VACTOR TRUCK, ONE (1) EMERGENCY STANDBY GENERATOR FOR THE 1655-1 HYDRO-STATION, ONE (1) SCISSOR LIFT WITH TRAILER, WHEN PRICING AND UNITS AREAVAILABLE, AND TO DECLARE AS SURPLUS UNIT #220 AND ONE (1)GENSET LOCATED AT THE 1655-1 HYDRO-STATION. GENERAL MANAGER’S RECOMMENDATION: That the Board authorize the General Manager to issue purchase orders for up to the budgeted amounts of $1,387,500.00, in addition to any applicable inflationary or tariff-related cost adjustments, for the following vehicles and equipment: •Two (2) Ford E-Transit cargo vans or similar InternalCombustion Engine (ICE) model, up to the budgeted amount of $75,000.00 each, for a total amount of $150,000.00 - CIPP2282. •One (1) Ford Pro Lightning truck or similar ICE model, up tothe budgeted amount of $75,000.00 – CIP P2282. •One (1) Ford Maverick compact Hybrid Truck, up to the budgeted amount of $31,000.00 - CIP P2282. •One (1) Combination Sewer-Cleaning Vactor Truck (automatic transmission) up to the budgeted amount of $1,000,000.00 -CIP S2078. AGENDA ITEM 4 2 • One (1) 19-foot aerial platform scissor lift with trailer up to the budgeted amount of $36,500.00 - CIP P2286 • One (1) Emergency Stand-by Generator Tier III (or better) up to the budgeted amount of $95,000.00 - CIP P2688 Additionally, to declare surplus to Unit #220 (2014 Kenworth combination sewer‑cleaning Vactor truck, 46,236 mi/9,724 hrs.) and the existing 1655‑1 hydro‑station generator (1991, Tier 0) upon commissioning of their replacements. Staff recommends that the Board also consider the regulatory risks outlined in this report and provide direction on whether to proceed with Advanced Clean Fleets (ACF) compliant vehicles or include Internal Combustion Engine (ICE) vehicles as replacements and additions, with an understanding of the potential for future penalties or regulatory conflict. COMMITTEE ACTION: See “Attachment A.” PURPOSE: To obtain Board authorization to purchase five fleet vehicles, one scissor lift with trailer, and one emergency standby generator at or below the budgeted amounts (plus inflation and tariffs costs, if applicable) and to surplus Unit #220 and one existing generator at the 1655-1 Hydro-Station. The report also informs the Board of recent ACF regulatory developments and seeks direction on whether to proceed with vehicle acquisitions in full compliance with the current ACF rules or to defer or modify purchases based on the District’s legal risk tolerance. ANALYSIS: There are five vehicles, one scissor lift with a trailer, and one emergency standby generator included for purchase in the approved FY26 budget. The current market presents a narrow ordering window due to pent-up demand, compressed Original Equipment Manufacturer (OEM) production cycles, and limited inventory. For example: • A Class 7 Hydro-excavator Vactor truck was ordered on August 7, 2024, is not expected to arrive until April 2026. 3 • Two Ford E-Transit vans were ordered on March 27, 2025, and still do not have a confirmed delivery date. • One Ford F-150 was ordered on March 27, 2025, and still does not have a delivery date. • Two emergency generators were ordered in November 2024, are projected for delivery between July-August 2025. These long lead times are a result of high demand, constrained supply, and California’s Advanced Clean Fleets Regulation (effective January 2024) which is still in effect for local and state governments. Furthermore, recent federal tariffs on imported auto parts for vehicles (effective May 3, 2025) are impacting pricing – even for vehicles assembled in the U.S. due to their reliance on foreign components. Waiting to secure pricing and then returning for Board approval could cause the District to miss 2025 build slots and incur higher prices. To address this challenge, staff propose purchasing the vehicles and equipment through Sourcewell Cooperative Agreements, either with National Auto Fleet Group (NAFG) or with specialized body equipment manufacturers that specialize in building certain vehicles, such as the Combination Sewer Cleaning Truck. Certain commercial manufacturers allocate production by region, with final allocations made to local dealers. Therefore, it is critical for the District to issue purchase orders promptly to secure a build slot. It is also important to note that in FY25, staff requested the Board to authorize the General Manager to issue purchase orders as fleet vehicles were made available and were able to secure these purchases and reserve a build slot for those fleet vehicles under production, therefore, avoiding extended lead times due to the short supply. Note: Cooperative/Joint Purchases are authorized under Section 6.2.3 of the Purchasing Manual. These purchases are exempt from the District’s competitive solicitation requirements so long as the contracts, schedules, and agreements are solicited in a manner consistent with the District’s purchasing policies. The District and neighboring agencies have used Sourcewell in the past. Sourcewell is a State of Minnesota’s local government unit and service cooperative created under the laws of the State of Minnesota that offers cooperative procurement solutions to government entities. While Sourcewell is a Minnesota-based government entity, it functions as a national cooperative procurement platform, and its contracts are fully compliant with California’s public contracting requirements. 4 Based on the aforementioned reasons, it is imperative to seek pre-authorization from the Board to secure the purchases of the vehicles, scissor lift with trailer, and emergency standby generator as soon as possible. The requested five vehicles, a scissor lift with trailer, and generator will replace and add units and equipment as described below (Attachment B). Replacements: • Unit #220 (2014, class 8 Kenworth Vactor Combination Sewer Truck – 46,236 miles). This Vactor truck is 11 years old with 9,724 engine hours and in need of replacement. This unit is essential for cleaning, flushing, and inspecting sewer mains and manholes to maintain an efficient sewer infrastructure and prevent sanitary sewer overflows. This Vactor Unit #220 will be replaced in kind with automatic transmission. This is subject to the State’s Advanced Clean Fleets regulation, which currently mandates a 50% Zero Emissions Vehicles (ZEV) purchase share for applicable replacements. • Unit #118 (2000, Class 2b Ford F250 Pickup truck – 125,789 miles). This vehicle is assigned to Fleet Shop, is 25 years old, and in need of replacement. It will be replaced with a Ford Pro Lightning or similar ICE model. • Unit #252 (2019 Toyota Tacoma – 82,400 miles). This vehicle is assigned to Meter Readers – Customer Service Field Representatives and is six years old and in need of replacement. This unit will have an excess of 100,000 miles by the time it is replaced and will be replaced with a more efficient hybrid pick-up such as a Ford Maverick. • The 1655-1 Hydro-Station Emergency Standby Generator is a 1991 175Kw Tier zero emissions level with a single wall diesel fuel belly tank. The generator has started to show signs of end of life, and it is time to replace it with a Tier III or better emissions level and double contain fuel storage system. • The Vertical Man Lift Unit #3922 in the Facilities Maintenance section has reached its end of life and it is time for replacement with an aerial platform scissor lift to 19’ (feet) to access lighting in the Board room and lobby area ceiling as well as other areas within the District. This purchase will add a trailer for transportation. 5 Additions: • Two (2) Ford E-Transit or similar ICE models for Meter Services. These units will be for the new Senior Meter Maintenance-Cross Connection Technicians in the Finance department. These units are subject to the State’s Advanced Clean Fleets regulation, which currently mandates a 50% ZEV purchase share for applicable replacements or additions. • One ground level trailer for transportation of the aerial platform scissor lift to be used at several District locations. Since the District requires reliable equipment and vehicles for emergency response with the capacity to perform repairs in a timely manner, staff requests to obtain Board authorization to procure and purchase their replacements to maintain critical water and sewer services. Based on the system operation evaluation of workflow and the current market uncertainty of vehicle stock and CARB regulation, staff recommends that the Board authorize the General Manager to issue purchase orders to purchase the vehicles and equipment requested in this report. Considering recent federal developments, including the Congressional Review Act (CRA) resolutions on June 12, 2025, which revoked EPA waivers for several California emissions programs, there remains significant regulatory uncertainty for California public agencies. However, CARB has maintained that its ACF regulation for state and local government fleets remains in effect. On the same day as the CRA action, Governor Newsom issued Executive Order N-27-25, affirming the State’s 100% ZEV goals and directing CARB to draft fallback, waiver-independent rules, with recommendations due by mid-August 2025. California, along with 10 other states, has filed a suit to overturn the CRA resolutions, with the first hearing set for September 16, 2025. As of early July, CARB has not issued formal updates or exemptions for local agencies and continues to require 50% ZEV purchase compliance through 2026 and full 100% ZEV purchases starting in 2027. As part of its ongoing compliance responsibilities, the District is required to report the annual status of its fleet under the ACF Regulation to CARB. This includes documenting whether vehicles are ZEV, ICE models, or otherwise exempt, as shown in “Attachment C.” The reporting must include new ZEV additions, the continued use or replacement of ICE vehicles, and the selling or removal of ICE vehicles from the fleet. This reporting is essential to maintain the District’s good standing under ACF regulatory mandates. 6 Given the current legal and regulatory landscape, staff reached out to the California Municipal Utilities Association (CMUA) and the California Special Districts Association (CSDA) to determine whether CARB has issued any new guidance or indicated potential changes. As of now, the ACF requirements for state and local government fleets remain fully in effect and enforceable. However, CARB is actively evaluating targeted amendments to the ACF regulation in response to Assembly Bill 1594, which was enacted in October 2023. These amendments are expected to offer additional flexibility for public agencies, such as operational-use-based exemptions and relief for utility-specific vehicle applications. To support these efforts, the District submitted a formal comment letter to CARB on June 24, 2025, advocating for practical exemptions and implementation clarity for essential water utility operations (Attachment D). In the absence of immediate changes, staff is presenting this purchase request in alignment with existing ACF requirements, while also providing the Board with options that include both ZEV and ICE replacements. This approach allows the District to remain compliant while retaining the flexibility to adapt should regulatory conditions evolve. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The total budgeted cost for five vehicles under CIP P2282 (Vehicle Capital Purchases), S2078 (Vehicle Capital Purchases-Sewer), and R2162 (Vehicle Capital Purchases-Recycled) is $1,256,000.00. The total budgeted cost for the scissor lift and trailer under CIP P2286 (Field Equipment Purchases) is $36,500.00. The total budgeted cost for the emergency standby generator under CIP P2688 (Standby Power Renovations) is $95,000.00. The Finance Department has determined that 100 percent of the funds are available to cover the cost of the Capital Purchases. STRATEGIC GOAL: This project supports the District’s Mission statement, “To provide exceptional water and wastewater service to its customers, and to manage District resources in a transparent and fiscally responsible manner” and the General Manager’s Vision, "To be a model water agency by providing stellar service, achieving measurable results, and continuously improving operational practices." 7 LEGAL IMPACT: None. Attachments: Attachment A – Committee Action Attachment B – Photos of Vehicles and Equipment Attachment C – CARB Certificate of Compliance Attachment D – CARB Letter ATTACHMENT A SUBJECT/PROJECT: AUTHORIZE THE PURCHASE OF FIVE (5) FLEET VEHICLES INCLUDING ONE (1) COMBINATION SEWER CLEANING VACTOR TRUCK, ONE (1) EMERGENCY STANDBY GENERATOR FOR THE 1655-1 HYDRO-STATION, ONE (1) SCISSOR LIFT WITH TRAILER, WHEN PRICING AND UNITS ARE AVAILABLE, AND TO DECLARE AS SURPLUS UNIT #220 AND ONE (1) GENSET LOCATED AT THE 1655-1 HYDRO-STATION. COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee reviewed this item at a meeting held on July 22, 2025, and the following comments were made: NOTE: The “Committee Action” is written in anticipation of the Committee moving the item forward for board approval. This report will be sent to the Board as a committee approved item, or modified to reflect any discussion or changes as directed by the committee prior to presentation to the full board. ATTACHMENT B Vehicles and Equipment Unit # 220 - 2014 Sewer Vactor Truck Unit # 252 - 2019 Toyota Tacoma Unit # 118 - 2000 Ford F-250 2001 Genie Vertical Man Lift 1655-1 Hydro-Station - 1991 Tier Zero Emergency Stand-by Generator ATTACHMENT C Page 1 of 3  June 24, 2025 California Air Resources Board 1001 I Street Sacramento, CA 95814 Subject: Updated Fleet Inventory, Compliance Challenges, and Request for Expanded Exemption Flexibilities Under the Advanced Clean Fleets (ACF) Regulation Dear California Air Resources Board: The Otay Water District appreciates the California Air Resources Board’s (CARB) continuing dialogue with public agencies as you prepare ACF amendments required by Assembly Bill 1594 (Garcia, 2023). As a nonprofit public water utility serving more than 238,000 residents in southeastern San Diego County, including the communities of eastern Chula Vista, Bonita, Jamul, Spring Valley, Rancho San Diego, unincorporated areas of El Cajon and La Mesa, and east Otay Mesa, we remain committed to the state’s climate and air-quality goals. We are in the process of installing dual-port level 2 chargers at our operations center and have integrated two battery-electric cargo vans into Otay’s daily service. Three additional zero-emission light-duty vehicles are scheduled for procurement before the end of calendar year 2025. Notwithstanding these proactive steps, Otay faces substantial hurdles beginning in the calendar year 2027, when ACF requires that all replacement vehicles in covered weight classes be 100% zero-emission. Of Otay’s 92-vehicle fleet, 43 units are subject to ACF; many perform essential functions 24/7, such as main-break response, sewer cleaning, confined-space deployments, and implementation of backup power. The enclosed inventory (updated June 2025) is summarized below. 1. Fleet Compliance Plan and Current Inventory Class 2b–3 (8,501 – 14,000 lbs. GVWR): 19 vehicles; 2 current ZEVs Strategy: Replace pickups/vans with ZEV models meeting ≥100-mile range and 2,000-lb payload; purchase three additional ZEVs in 2025. Class 4–5 (14,001 – 19,500 lbs.): 11 vehicles; 0 ZEVs Strategy: Evaluate ZEV service, bucket and dump-bed trucks as commercial offerings mature. ATTACHMENT D Page 2 of 3     Class 6–7 (19,501 – 33,000 lbs.): 9 vehicles; 0 ZEVs Strategy: Continue until viable ZEV vocational chassis become available.  Class 8 (Over 33,000 lbs.): 4 vehicles; 0 ZEVs Strategy: Seek exemptions for vacuum, utility trucks, and dump platforms; revisit ZEV options post-2028. 2. Exemptions the District Anticipates Seeking  Emergency Event – All vacuum, Vactor, and generator-hauler trucks must remain deployable during wildfires, Public Safety Power Shutoffs (PSPS), and main-break emergencies.  Technical Infeasibility – Class 6–8 vocational units: no market-ready ZEV chassis with Power Take Off (PTO) hydraulics, Gross Vehicle Weight Rating (GVWR), or frame-rail specs.  Infrastructure Delay – Class 4–8 vehicles: San Diego Gas & Electric interconnection upgrade is required and will not be completed until possibly late 2028.  Lead Time – Class 2b–3 pickups: Equipment manufacturer pickup delivery times exceed 18 months, misaligning with replacement cycles. 3. Key Pain Points  Vocational ZEV Availability: No commercial electric vacuum (Vactor), dump, or crane trucks yet meet duty-cycle and PTO requirements.  Charging Infrastructure and Power Capacity: The planned facility upgrade will significantly raise Otay’s power needs, with the utility’s completion date pushed to 2028.  Emergency-Response Reliability: Battery-only heavy units risk downtime during extended outages, as no fast-swap or mobile-charging options exist.  Capital and Lifecycle Cost: Vocational ZEVs are expected to cost several times more than conventional units, and the required facility modifications are not funded in the fiscal year 2026–2030 Capital Improvement Project.  Procurement Lead Times: Even where ZEV models exist, statewide demand extends delivery beyond 2027 compliance years. 4. Critical Compliance Years  2027–2030: The peak replacement cycle (~8 to 10 trucks per year) collides with a lack of vocational ZEV supply and delayed infrastructure.  2031–2032: Infrastructure complete; vocational ZEV availability remains uncertain— exemption renewals will likely be needed. 5. Requested Regulatory Flexibilities  Extended Technical-Infeasibility Exemptions for Class 4–8 vocational equipment until multiple manufacturers offer functionally equivalent ZEV platforms. Page 3 of 3     Hybrid/Low Nitrogen Oxides Bridge Pathway, allowing public fleets to purchase CARB-certified hybrid or near-zero vehicles for mission-critical roles through at least 2032.  Emergency-Event Fleet Carve-Out granting automatic, longer-term exemptions for permanently mounted emergency equipment (vacuum, utility, and Vactor trucks).  Infrastructure-Readiness Deferral that links compliance deadlines directly to documented utility-service delays. 6. Next Steps Consistent with AB 1594, Otay hereby submits this letter to the AB 1594 docket ACF CARB for review of these challenges in detail and collaboration on practical solutions. If you have any questions or would like to schedule a meeting or discussion, please don't hesitate to contact me at (619) 670-2231 or cmederos@otaywater.gov. We look forward to working with CARB to craft amendments that safeguard essential public-health services while advancing California’s zero-emissions future. Thank you for your consideration. Respectfully, Charles Mederos Utility Services Manager Otay Water District cc: Nick Blair, Senior Policy Advocate, ACWA Andrew Jackson, Chief of Water Operations, Otay Water District Jose Martinez, General Manager, Otay Water District