HomeMy WebLinkAbout12-11-25 EO&WR Committee Packet1
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
THURSDAY
DECEMBER 11, 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 THE RESOLUTION OF NECESSITY FOR THE ACQUISITION OF AN
EASEMENT ON A PORTION OF PROPERTY AT 13958 PROCTOR VALLEY ROAD,
JAMUL, CA 91935 (APN: APN: 597-230-12-00) (LITO SANTOS) [5 MINUTES]
4. UPDATE ON THE RECYCLED WATER INTERTIE PROJECT PLANNING STUDY
WITH SWEETWATER AUTHORITY (BETH GENTRY) [5 MINUTES]
5. FIRST QUARTER FISCAL YEAR 2026 CAPITAL IMPROVEMENT PROGRAM RE-
PORT (KEVIN CAMERON) [5 MINUTES]
BOARD MEMBERS ATTENDING:
Frank Rivera, Chair
Mark Robak
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
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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 December 9, 2025, I posted a copy of the foregoing agenda near the regular
meeting 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 December 9, 2025.
/s/ Jenny Diaz, District Secretary
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: January 7, 2026
SUBMITTED BY: Lito Santos Senior Civil Engineer
PROJECT: P2058-001102 DIV. NO. 5
APPROVED BY: Beth Gentry, Engineering Manager
Michael Long, Chief, Engineering
Jose Martinez, General Manager
SUBJECT: Adopt a Resolution of Necessity for the acquisition of an easement on a portion of the property at 13958 Proctor Valley Road, Jamul, CA 91935 (APN: 597-230-12-00) and Authorize the Commencement of Condemnation to acquire said easement
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District (District) Board of Directors (Board)
adopt the Resolution of Necessity for the acquisition of an easement on a portion of the property at 13958 Proctor Valley Road, Jamul, CA
91935 (APN: 597-230-12-00) attached as Exhibit A and authorize the commencement of condemnation proceedings to acquire said easement.
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To adopt the Resolution of Necessity for a portion of land on 13958
Proctor Valley Road, Jamul, CA 91935 and authorize the commencement of condemnation proceedings to acquire said easement. The Resolution of Necessity is a formal document that is required prior to the District filing Eminent Domain (condemnation) proceedings to acquire private property under Civil Procedure Section 1254.230. Following
the adoption of the Resolution of Necessity, Board authorization is required to initiate the condemnation proceedings to acquire said
property.
AGENDA ITEM 3
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ANALYSIS:
To initiate the Eminent Domain, the property must be essential for the proposed public Project with no viable alternative locations or
methods existing, and due process to acquire the easement must be followed.
The property underlaying the easement is essential for Capital Improvement Project (CIP) P2058 PL - 20-Inch Proctor Valley Road from
Melody Road to Highway 94. As shown in Exhibit B. This Project is scheduled to replace 1,600 feet of 12-inch potable water pipeline
within the 1296 Pressure Zone (PZ) in Proctor Valley Road in Jamul, CA. The 12-inch concrete pressure pipe (CPP) was installed in 1962 and has been repaired three (3) times in the past ten (10) years.
These main breaks are an indication the pipe is approaching its end of useful life. In addition, this pipeline was identified in the
2015 Water Facilities Master Plan Update for upsizing to a 20-inch pipeline to continue to reliably serve the growing community and District.
During the design phase of the Project, it was discovered that a
majority of the existing County road was constructed on private property, outside the Right-of-Way. For safety, traffic control, constructability, water service reliability, and for limited impact on neighboring residents in the community, the District requires the existing 12-inch waterline remain in service. The existing pipeline
is in the northbound lane and the new 20-inch waterline is planned for the southbound lane. Normally, the entire width of the road would be constructed within the Right-of-Way; however, for reasons unknown, only the northbound lane of the County road was constructed within the Right-of-Way. Therefore, an easement is required to
construct the new pipeline on the other side of the road. The acquisition of an easement on the existing road’s southbound lane
requires easements from six (6) private properties. As shown in Exhibit C.
For acquisition of the easements, District staff followed due process and contracted with Bender Rosenthal, Inc. (BRI) to conduct appraisal
services on all 6 properties. BRI provided the appraised fair market value to acquire a waterline easement on a portion of the owners' properties that extends into the paved area of the existing road.
District staff made multiple communication efforts to all 6 affected
property owners over the past year. On November 18, 2024, staff sent letters to all 6 properties offering the Fair Market Value to acquire a waterline easement. On December 10, 2024, staff conducted a public
outreach meeting with half of the owners in attendance. Staff went over the Project and answered questions and concerns from the owners.
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Attendees requested additional easement language. After careful
consideration by the District’s Counsel, the easement language was changed to reflect the property owners’ requests. To date, five (5) of the six (6) owners have accepted the District’s offers.
Ms. Alyssa Hawley, one of the property owners, at 13958 Proctor
Valley Road (as shown on Exhibit D), responded to the initial correspondence. She was present during the appraisal inspection on May 24, 2024. On November 18, 2024, staff sent Alyssa and David
Hawley an offer letter for the fair market value to acquire a waterline easement. After several failed attempts to connect with
the owners, Ms. Hawley, one of the two joint property owners, responded to staff’s last notification on October 15, 2025.
With the property held jointly by Alyssa and David Hawley, authorization by both parties is required to acquire the easement.
David Hawley has not responded to any communication attempts.
Negotiation and coordination continue with Ms. Alyssa Hawley. Time is of the essence, and District’s Legal Counsel and staff recommend commencing the Eminent Domain process to ensure the easement can be
acquired, requiring execution by both Alyssa and David Hawley. The Public Hearing date of January 7, 2026 was approved by the Otay Water District Board at the November 5, 2025 Board Meeting. On December 15, 2025, more than fifteen (15) days prior to the Public Hearing date, property owners Alyssa and David Hawley will be notified by staff,
via certified mail, of the approved Public Hearing date of January 7, 2026, for the commencement of Eminent Domain proceedings.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
The total budget for CIP P2058, as approved in the FY 2026 budget, is $3,500,000. Total expenditures and forecast are $3,500,000. See
Attachment B for the budget detail as of December 1, 2025.
Based on a review of the financial budget, the Project Manager
anticipates that the budget for CIP P2058 is sufficient to support the Project.
The Finance Department has determined that, under the current rate model, 31% of the funding is available from the Expansion Fund and
69% of the funding is available from the Replacement Fund.
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GRANTS/LOANS:
Engineering staff researched and explored grants and loans and found none available for this Project.
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."
LEGAL IMPACT:
General Counsel has advised that this is the next necessary step in the Eminent Domain process, which would enter the District into litigation.
LS/BG:jf
Attachments: Attachment A – Committee Action Attachment B – P2058 Budget Detail
Exhibit A – Resolution of Necessity Exhibit B - Location Map Exhibit C - Proctor Valley Road Proposed Alignment
Exhibit D – Aerial Map of Easement to be Acquired
ATTACHMENT A
SUBJECT/PROJECT:
P2058-001102
Adopt a Resolution of Necessity for the acquisition of an easement on a portion of the property at 13958 Proctor Valley Road, Jamul, CA 91935 (APN: 597-230-12-00) and
Authorize the Commencement of Condemnation to acquire said easement
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee (Committee)
reviewed this item at a meeting held on December 11, 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 from the Committee prior to presentation to the full Board.
ATTACHMENT B – P2058 Budget Detail
SUBJECT/PROJECT:
P2058-001102
Adopt a Resolution of Necessity for the acquisition of an easement on a portion of the property at 13958 Proctor
Valley Road, Jamul, CA 91935 (APN: 597-230-12-00) and Authorize the Commencement of Condemnation to acquire said easement
12/1/2025
Budget
$3,500,000
Planning
Standard Salaries 26,106 - 26,106
-
Total Planning 26,106 - 26,106
Design
Standard Salaries 178,170 125,000 303,170
28,740 16,960 45,700 BENDER ROSENTHAL INC
14,633 - 14,633 NINYO & MOORE GEOTECHNICAL
26,342 60,600 86,942 NV5 INC
Service Contracts 34 - 34 DAILY JOURNAL CORPORATION
Easement Acquisition 16,800 6,400 23,200
Total Design 264,719 208,960 473,679
Construction
Standard Salaries 120,000 120,000
5,000 70,000 75,000 NV5 INC
75,000 75,000 Forecasted Construction Management Consultant
2,730,214 2,730,214 Forecasted Contractor
Total Construction 5,000 2,995,214 3,000,214
Grand Total 295,825 3,204,174 3,500,000
Construction Contract
Vendor/Comments
Otay Water District
P2058 - PL-20" 1296 PZ Proctor Valley Rd Melody/I-94
Expenditures Forecast Projected Final
Cost
Consultant Contracts
RESOLUTION NO. 4464
RESOLUTION OF THE BOARD OF DIRECTORS DETERMINING AND DECLARING THE PUBLIC NECESSITY FOR THE ACQUIRING OF CERTAIN PROPERTY FOR PIPELINES AND AUTHORIZING THE COMMENCEMENT OF CONDEMNATION PROCEEDINGS TO ACQUIRE SAID PROPERTY (APN 597-230-12-00)
WHEREAS, the potable water pipeline installed in North
Proctor Road from Calle Bueno Ganar to Schlee Canyon Road
requires upgrades; and
WHEREAS, the current 12-inch diameter water main was
installed in 1962 and has experienced three (3) breaks in the
last ten (10) years, indicating it is nearing its useful life
cycle and in need of replacement; and
WHEREAS, projected development in or around the area
requires a larger 20-inch diameter pipeline as was identified in
the 2015 Water Facilities Master Plan Update to meet future
demands; and
WHEREAS, the majority of the San Diego County road in which
the existing pipeline resides was built outside the public
Right-of-Way on private property; and
WHEREAS, the existing pipeline is in the public Right-of-
Way, in the northbound lane; and
WHEREAS, to maintain reliable water service during
construction, the new 20-inch line will be constructed in
parallel with the current 12-inch water main in service, in the
southbound lane; and
WHEREAS, the southbound lane of the County Road was built
on private property; and
WHEREAS, it is necessary to obtain an easement on private
property for construction and maintenance of the pipeline; and
WHEREAS, the private property is jointly owned by David
Hawley and Alyssa Hawley at 13958 Proctor Valley Road, Jamul,
California 91935 (APN 597-230-12-00).
EXHIBIT A
WHEREAS, said property consists of a twenty-three foot
easement over 6,464 square feet, as particularly described on
Exhibit A and more; depicted in Exhibit B; and
WHEREAS, pursuant to California water Code Section 71693,
the Otay Water District may exercise the right of eminent domain
to acquire said property; and
WHEREAS, the Board has previously certified the Program
Environmental Impact Report on this project at the January 4,
2017 Board Meeting.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT:
1. That the recitals set forth above are hereby
incorporated herein.
2. That the Board of Directors of the Otay Water District
finds and determines, and therefore declares, that the
public interest and necessity require the acquisition of
the easement and fee interest described in Exhibits A
and B in order to construct pipelines and to connect and
serve other planned facilities in the North District,
which are necessary to meet demands from the North
District.
3. That the proposed project is planned or located in the
manner that will be most compatible with the greatest
public good and least private injury because the site is
aligned along an existing publicly maintained road.
4. That the property described in the resolution is
necessary for the proposed project because it is in the
proper location to align other existing and planned
District facilities.
5. That the District has made a good faith offer to
purchase the property pursuant to Government Code
Section 7267.2 in that the Otay Water District has had
an appraisal prepared and has offered $2,700 to the
owner, which it believes to be the fair market value.
6. That the General Counsel for the Otay Water District is
hereby authorized and empowered to prepare and prosecute
each suit or suits as are necessary to condemn, take,
and acquire said real property described in Exhibits A
and B and to make application to the Court for an order
fixing the amount or amounts of such security in the way
of money deposits as said Court may direct to be made
upon the taking of possession of said real property, or
any part thereof, and to make application for an order
permitting the Otay Water District to take immediate
possession and use of said real property, or any parts
thereof, and to make deposit of such security and such
amounts fixed by the Court may direct and to incur on
behalf of the Otay Water District all reasonable and
necessary expense in the prosecution of a suit or suits
to condemn said real property.
BE IT FURTHER RESOLVED by the Board of Directors of the
Otay Water District that this resolution is intended to comply
with Section 1245.230 of the Code of Civil Procedure.
PASSED, APPROVED, AND ADOPTED by the Otay Water District
Board of Directors at a regular meeting held this 7th day of
January, 2026.
Ayes: Noes: Abstain:
Absent:
________________________
XXXXXXXXXX, President Otay Water District
Attest:
____________________
District Secretary
CERTIFICATION I do hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted at a meeting of the Otay Water District Board of Directors held on January 7, 2026. __________________________________ _________________________
Name Title
EXHIBIT “A”
Legal Description
Water Line Easement
APN: 597-230-12
That portion of land in the County of San Diego, State of California, described as
follows:
The easterly twenty-three feet (23’) of the parcel of land described in that Grant
Deed to David Hawley and Alyssa Hawley, husband and wife as community
property, recorded July 31, 2014 as Document No. 2014-0327533 of San Diego
County Official Records.
Containing: 6,464 Sq. Ft., more or less
Subject to all covenants, rights, rights-of-way and easements of record.
All as shown on the plat attached hereto as “Exhibit B” and by this reference made
a part hereof.
This legal description was prepared by me or under my direction in conformance
with the Land Surveyor’s Act.
Prepared By
NV5, Inc.
________________________ ______________
Joel F. Paulson, L.S. 6637 Date
OTAY WATER DISTRICTRANCHO SAN DIEGO & JAMULPIPELINE REPLACEMENT PROJECTLOCATION MAP
EXHIBIT B
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DIV. 5
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DIV. 4 DIV. 1
15092 AVENUE OF SCIENCE, SUITE 200
SAN DIEGO, CA 92128
858.385.0500 TEL
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WWW.NV5.COM
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LEGEND
- PROPOSED WATER MAIN
- PROPOSED WATER SERVICE
-PROPOSED EASEMENT LIMITS
LEGEND
- PROPOSED WATER MAIN
- PROPOSED WATER SERVICE
-PROPOSED EASEMENT LIMITS
LEGEND
- PROPOSED WATER MAIN
- PROPOSED WATER SERVICE
-PROPOSED EASEMENT LIMITS
LEGEND
- PROPOSED WATER MAIN
- PROPOSED WATER SERVICE
-PROPOSED EASEMENT LIMITS
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EXHIBIT C
15092 AVENUE OF SCIENCE, SUITE 200
SAN DIEGO, CA 92128
858.385.0500 TEL
858.385.0400 FAX
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EXHIBIT D
1
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: January 7, 2026
SUBMITTED BY: Beth Gentry Engineering Manager
PROJECT: R1254 - 001000
DIV. NO. All
APPROVED BY: Michael Long, Chief, Engineering
Jose Martinez, General Manager
SUBJECT: Informational Item – Recycled Water Intertie Project Planning Study
GENERAL MANAGER’S RECOMMENDATION:
No recommendation. This is an informational item only.
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To provide the Board an informational update on the Recycled Water Intertie Project Planning Study – a collaboration between the Otay Water District (District) and the Sweetwater Authority (SWA).
ANALYSIS:
On August 11, 2022, Board members from the District and the SWA met as a Task Force and decided to study the feasibility of recycled
water use within the SWA’s jurisdiction. In August 2023, the District’s Board and the SWA’s Board authorized a Memorandum of
Understanding (MOU) Agreement, setting forth the understanding of the District and the SWA for the joint Project establishing an equal financial obligation from each agency to complete the Study.
The Study was intended to include an assessment of potential recycled
water and other water reuse opportunities, quantities, and customers. The Study evaluates the feasibility of extending the District’s
AGENDA ITEM 4
recycled water system within the Sweetwater SWA service area and assesses a range of potential non-potable and potable reuse alternatives, along with the regulatory, operational, and cost
considerations associated with each option.
The Board approved an agreement with Carollo Engineers, Inc. (Carollo) for $305,470 on February 2, 2024, to complete the Recycled Water Intertie Project Study outlined in the MOU. The Study will
include an additional assessment of direct potable reuse projects. In June 2024, the District received approval for a grant from the
California Water Boards for $300,000 to complete the Study. On October 6, 2025, the SWA and the District’s Ad hoc Committee met
to review the results of Carollo’s Study. As part of the grant conditions, they request to review the draft Study and meet prior to
finalizing the report. The draft Study was sent to the State in November for review. The grant requires all work to be completed by October 6, 2026. Project Area Overview
The Study area encompasses the combined service territories of the District and the SWA. The District’s jurisdiction covers approximately 126 square miles in the south-central portion of San Diego County and includes a mix of established and rapidly developing
neighborhoods such as Rancho San Diego, Jamul, Spring Valley, Bonita, Otay Mesa, and the eastern portions of Chula Vista. This area is
characterized by diverse topography and is governed by a combination of the City of San Diego, the City of Chula Vista, and the County of San Diego land-use plans. The population within the District’s
service area continues to grow, particularly in the Otay Mesa region, where significant new residential development has accelerated in recent years. The SWA’s service area covers approximately 29 square miles across
National City, the western and central portions of Chula Vista, and the unincorporated communities of Bonita Valley and Lincoln Acres.
The SWA serves a highly urbanized customer base and depends on a combination of local surface water supplies and imported water. Land-use patterns within the SWA also indicate substantial irrigation
demand, particularly for golf courses, cemeteries, large parks, and public landscapes—creating a strong foundation for potential recycled
water use. Water Supply and Facilities
The District meets potable demand through imported treated water from
the San Diego County Water Authority (SDCWA), with supplemental and backup connections available from the City of San Diego’s Otay Water
Treatment Plant and from Helix Water District. Although potable demand has stabilized in recent years, long-term projections indicate that population and employment growth will gradually increase overall
demand. At the same time, the District’s recycled water system has become an important component of its supply portfolio, with recycled
water demands fluctuating between 3,300 and 4,800 acre-feet per year depending on seasonal and economic conditions. These demands are expected to rise approximately 29 percent by 2055.
The SWA relies on a blend of local surface water from Sweetwater and
Loveland Reservoirs and imported water delivered by SDCWA. While the SWA does not currently operate a recycled water distribution system, the agency serves numerous large irrigation customers whose water-use
characteristics make them suitable for conversion to recycled water if infrastructure becomes available.
Wastewater and Recycled Water Sources The District owns and operates the Ralph W. Chapman Water Reclamation Facility (RWCWRF), a 1.3-million-gallon-per-day scalping plant
capable of producing approximately 1,100 acre-feet per year of disinfected tertiary recycled water. The RWCWRF operates in coordination with the City of San Diego’s South Bay Water Reclamation Plant (SBWRP), which supplies most of the recycled water used in the District’s system. Together, these facilities currently enable the
District to serve nearly 700 recycled water customers.
The International Boundary and Water Commission’s South Bay International Wastewater Treatment Plant (SBIWTP) was also evaluated as a potential future source for supplemental supply. However, as
noted in the presentation, current regulatory and institutional constraints associated with cross-border wastewater treatment limit
its near-term feasibility as an augmentation source. Regulatory Requirements for Reuse
In California, the State Water Resources Control Board, primarily
through the Division of Drinking Water (DDW) and the Regional Water Quality Control Boards, oversees both treatment standards and permitting requirements for potable reuse.
Non-potable reuse requires disinfected tertiary recycled water that
meets the advanced filtration, disinfection, turbidity, and pathogen-removal standards established under Title 22. Potable reuse applications, including both indirect and direct reuse, require
advanced water treatment processes such as microfiltration, reverse osmosis, and ultraviolet/advanced oxidation. These applications must
also meet extensive monitoring, redundancy, and public-health protection requirements. The permitting process for potable reuse
involves coordinated review between DDW and the RWQCB and is significantly more complex and resource-intensive than permitting for non-potable reuse.
Recycled Water Market Assessment
There was extensive analysis conducted to evaluate the potential demand for recycled water within the SWA’s service area. The project
team reviewed potable water billing records for all large, landscaped areas, golf courses, and industrial customers and analyzed aerial
imagery to identify properties with more than five acres of irrigated land. Through this process, the Study identified several high-use “anchor” customers, including the San Diego Country Club, Chula Vista
Golf Course, Glen Abbey Cemetery, Bonita Golf Course, and Sweetwater Regional Park, with substantial irrigation demands suitable for
conversion to recycled water. The analysis also determined projected monthly demand patterns and calculated peak-day and peak-hour requirements consistent with the District’s planning standards. This assessment confirmed that both the northern and southern
portions of the SWA’s service area are strong candidates for recycled water service, with the northern cluster offering significantly higher aggregate demand than the southern cluster. Evaluation of Project Alternatives
After reviewing alternatives, a detailed evaluation was completed for
the six most viable project alternatives. This included two non-potable reuse options and four potable reuse options, along with two supply augmentation pathways needed to support potable reuse. Each
alternative was analyzed using a 30-year planning horizon.
The first two alternatives focus on extending the District’s existing recycled water system to serve customers in the SWA’s service area. The southern alignment would serve the San Diego Country Club and
adjacent customers, producing an estimated 236 to 382 acre-feet per year at a unit cost ranging from approximately $5,000 to $7,600 per
acre-foot. By contrast, the northern alignment would reach several large golf courses and cemeteries and would generate between 1,024 and 1,185 acre-feet per year, at a considerably lower unit cost of
approximately $3,600 to $4,400 per acre-foot. The Study and the management briefing both noted that the northern alternative is
markedly more cost-effective and delivers higher systemwide benefits than the southern alternative.
To enable potable reuse alternatives, additional source water must be secured for the SBWRP. The Study evaluated supply augmentation from
the SBIWTP and from the City of San Diego’s sewer system. The SBIWTP option was determined to be infeasible at this time due to regulatory
barriers, whereas the City of San Diego wastewater diversion option offers a viable source of up to 5.7 million gallons per day of additional wastewater. This augmentation is essential for any future
potable reuse alternative.
The potable reuse alternatives include indirect potable reuse via groundwater recharge, indirect potable reuse via surface water augmentation to Sweetwater Reservoir, direct potable reuse via raw
water augmentation to Sweetwater Reservoir, and direct potable reuse via treated water augmentation to the Perdue Water Treatment Plant.
These options range in unit cost from approximately $6,100 per acre-foot to more than $7,600 per acre-foot, reflecting the significant infrastructure and treatment requirements associated with advanced
purification. Among these alternatives, indirect potable reuse via surface water augmentation appears to be the most cost-effective
potable option while still delivering substantial annual yield. Supplemental potable water to SWA would most likely come from SDCWA at $2800/af. Comparing costs for the potable reuse and given the availability of the SDCWA potable supply, the projects are not
financially feasible. With appropriate grants and/or subsidies or other changed assumptions, the projects may be feasible. The Study includes triggers in which to re-evaluate the projects. FISCAL IMPACT: Joe Beachem, Chief Financial Officer
None.
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." LEGAL IMPACT: No legal impact for the informational item.
BG/ML:jf
Attachments: Attachment A – Committee Action Attachment B – Presentation Slides
ATTACHMENT A SUBJECT/PROJECT:
R1254-001000
Informational Item – Recycled Water Intertie Project
Planning Study
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee (Committee) reviewed this informational item at a meeting held on December 11,
2025.
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.
Recycled Water Intertie Project Planning Study
A Collaboration Between
Otay Water District &
Sweetwater Authority
1/7/26: Board, 12/11/25: EO&WR Committee, & 10/6/25 Ad Hoc
ATTACHMENT B
CAROLLO / 2
OWD and SWA
Project Team Jose Lopez Beth Gentry
Carlos Quintero
Gary CroucherJose Martinez
Paulina Martinez-Perez
Steve Castaneda Manny Delgado
Michael Long
Hector Martinez
Ditas Yamane
Lito Santos
Francisco X. Rivera
Delfina Gonzalez Mark Robak
Elizabeth Cox Ron Morrison Kay Kim
CAROLLO / 3
Carollo and HDR
Project Team
Jeff WeishaarCarolloPIC
Inge WiersemaCarolloRecycled Water Technical Advisor
Jingyi WuHDR
Purified Water Support
Leanne HammondHDR
Purified Water Technical Advisor
Rachel DuncanCarolloProject Manager
Jacquelin Mutter HDR
Purified Water Technical Lead
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Overview
1. Study Approach & Grant Requirements Overview
2. Study Results
3. Feasibility and Recommendations
4. Questions
1. Study Approach
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Study Approach
•Recycled Water (non potable reuse) and Purified Water (potable reuse) alternatives
•Recycled Water:
»Large SWA Irrigation Customers (>10 AFY)
»North and South Irrigation Areas
•Purified Water:
»Reviewed 36 options
»Detailed review of best 4 alternatives
•Class 5 cost estimates developed for alternatives represent a range from -50% to +100%
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Milestones
Carollo Eng, Inc. Agreement Executed April 2024
December 2025
Submit draft report to grant overseer, State Board
Mid-course meeting with grant overseer February 2026
April 2026
Final Project Report
October 6, 2026
Work Completion (hard date)
2. Study Results
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Recycled Water Alternatives
Alt 1: Recycled Water - South
Alt 2: Recycled Water - North
Alt 3: IRP Purified Water - Groundwater Recharge
Alt 4: IRP Purified Water - Surface Water Augmentation
Alt 5: DPR Purified Water - Raw Water Augmentation
Alt 6: DPR Purified Water - Treated Water Augmentation
All purified water options require supply augmentation to SBWRP
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Reuse Alternatives
Alt 1: Recycled Water - South
Alt 2: Recycled Water - North
Alt 3: IRP Purified Water - Groundwater Recharge
Alt 4: IRP Purified Water - Surface Water Augmentation
Alt 5: DPR Purified Water - Raw Water Augmentation
Alt 6: DPR Purified Water - Treated Water Augmentation
All purified water options require supply augmentation to SBWRP
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Alt 1: Recycled Water-South
•Description: San Diego Country Club
•Yield: 236 – 382 afy
•Unit Cost: ~$5,000/af - $7,600/af
Unit Cost SDCWA: $2,500/af
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Alt 2: Recycled Water -North
•Description: Chula Vista Golf Course, Glenn Abbey Cemetery, Bonita Golf Course, Sweetwater Regional Park
•Yield: 1,024 – 1,185 afy
•Cost: ~$3,600/af - $4,400/af
Unit Cost SDCWA: $2,500/af
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Purified Water Alternatives
Alt 1: Recycled Water - South
Alt 2: Recycled Water - North
Alt 3: IRP Purified Water - Groundwater Recharge
Alt 4: IRP Purified Water - Surface Water Augmentation
Alt 5: DPR Purified Water - Raw Water Augmentation
Alt 6: DPR Purified Water - Treated Water Augmentation
All purified water options require supply augmentation to SBWRP
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Supply Augmentation
•Supply: 5.7 mgd or 6,406 afy
•Total Unit Cost: $1,400 - $1,600/af
Alternative B: City of San Diego Sewer
Alternative A: South Bay International Wastewater Treatment Plant
•Supply: 4.8 mgd or 5,377 afy
•Total Unit Cost: $2,200 - $2,500/af
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Alt 3: IPR - Groundwater Recharge
•Description: Purifying water for recharge into the Coastal Plain of San Diego Basin for storage
•Yield:3.8 mgd or 4,311 afy
•Total Unit Cost: ~$6,700/af
Unit Cost SDCWA: $2,000/af
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Alt 4: IPR - Sweetwater Res
•Description: Purifying water to surface water augmentation standards and conveying it to Sweetwater Reservoir for storage
•Yield:3.8 mgd or 4,311 afy
•Total Unit Cost: ~$6,100/af
Unit Cost SDCWA: $2,500/af
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Alt 5: DPR - Sweetwater Res.
•Description: Purified water direct to Sweetwater Reservoir
•Yield: 3.5 mgd or 3,966 afy
•Total Unit Cost: ~$7,600/af
Unit Cost SDCWA: $2,500/af
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Alt 6: DPR- Perdue WTP for Distribution
•Description: Purified water conveyed to Perdue WTP for distribution
•Yield: 3.5 mgd or 3,966 afy
•Total Unit Cost: ~$7,500/af
Unit Cost SDCWA: $2,500/af
3. Feasibility
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Present Day Cost Analysis
$700
$1,600 2500
$5,000 $3,600
$6,700 $6,100
$7,600 $7,500
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
SweetwaterAuthority Average SBWRP RW SDCWA Potable Alt 1: NPR South Alt 2: NPR North Alt 3: IPR GWR Alt 4: IPR SWA Alt 5: DPR RWA Alt 6: DPR TWA
Es
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Alternatives
Alt B Alt B Alt B Alt B
SDCWA Potable Unit Cost
236 afy
1,024 afy
4,311 afy
4,311 afy
3,966 afy 3,966 afy
CAROLLO / 21
30-Year Cost Escalation Analysis
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
$20,000
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SDCWA (Low)SDCWA (High)Alt 1: NPR South Alt 2: NPR North Alt 3: IPR GWR Alt 4: IPR SWA Alt 5: DPR RWA Alt 6: DPR: TWA
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No Project Alternative
•SDCWA potable prices rise
•Available funding (e.g., partnerships, grants, etc.)
•SDCWA potable supply scarce or unreliable
•Excess South Bay WRP capacity available
4. Questions
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STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: January 7, 2026
SUBMITTED BY: Kevin Cameron Engineering Manager
PROJECT: Various DIV. NO. ALL
APPROVED BY: Michael J. Long, Chief of Engineering
Jose Martinez, General Manager
SUBJECT: Informational Item – First Quarter Fiscal Year 2026 Capital Improvement Program Report
GENERAL MANAGER’S RECOMMENDATION:
No recommendation. This is an informational item only.
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To update the Board about the status of all Capital Improvement
Program (CIP) expenditures and to highlight significant issues, progress, and milestones on major active construction projects.
ANALYSIS:
To keep up with growth and to meet our ratepayers' expectations to adequately deliver safe, reliable, cost-effective, and quality water, each year the District staff prepares a Six-Year CIP Plan that
identifies the District’s infrastructure needs. The CIP is comprised of four categories consisting of backbone capital facilities,
replacement/renewal projects, capital purchases, and developer reimbursement projects.
AGENDA ITEM 5
2
The First Quarter Fiscal Year 2026 update is intended to provide a
detailed analysis of progress in completing these projects within the allotted time and budget of $19.708 million. Expenditures through the First Quarter totaled approximately $2.931 million.
Approximately 15% of the Fiscal Year 2026 expenditure budget was spent (see Attachment B). FISCAL IMPACT: Joe Beachem, Chief Financial Officer
No fiscal impact as this is an informational item only. STRATEGIC GOAL: This Program 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." LEGAL IMPACT:
None. KC/MJL:jf
Attachments: Attachment A – Committee Action Attachment B - Fiscal Year 2026 First Quarter CIP Expenditure Report
Attachment C – Presentation
ATTACHMENT A
SUBJECT/PROJECT: VARIOUS
Informational Item – First Quarter Fiscal Year 2026 Capital Improvement Program Report
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee (Committee)
reviewed this informational item at a meeting held on December 11, 2025. 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.
FISCAL YEAR 2026 1ST QUARTER REPORT(Expenditures through 9/30/2025
($000)
ATTACHMENT B
2026 09/30/25
CIP No.Description Project Manager FY 2026 Budget Expenses Balance Expense to Budget %Overall Budget Expenses Balance Expense to Budget %Q1 CommentsCAPITAL FACILITY PROJECTS -
P2040 Res - 1655-1 Reservoir 0.5 MG
Marchioro
150$ 2$ 148$ 1%7,300$ 1,127$ 6,173$ 15%
The construction schedule is pushed out to the FY 2029-2031 timeframe as part of a previous budget cycle. Subsequently, other design phase efforts have been prioritized.
P2228 Res - 870-2 Reservoir 3.4 MG
Marchioro
4,000 1,435 2,565 36%17,489 6,123 11,366 35%
Contractor progressing through construction of the new 870-2 Reservoir such that FY 2025 expenditures were accelerated and Q1 FY 2026 expenditures are on track. Construction completion scheduled for Q1 FY 2028.
P2405 PL - 624/340 PRS, Paseo Ranchero and Otay Valley Road
Santos
475 - 475 0%1,000 725 275 73%
Reimbursement Agreement and full allocation of funds have been transferred to the City of Chula Vista for the construction of the Pressure Regulating Station.
P2451 Otay Mesa Desalination Conveyance and Disinfection System Gentry 5 - 5 0%35,700 3,823 31,877 11%Only minor coordination efforts are expected this fiscal year.P2460 I.D. 7 Trestle and Pipeline Demolition Blalock 8 - 8 0%901 287 614 32%No expenditures anticipated in FY 2026.P2516 PL - 12-Inch, 640 Zone, Jamacha Road - Darby/Osage Santos 50 - 50 0%1,500 - 1,500 0%Planning will be initiated in Q2 FY 2026.P2521 Large Meter Vault Upgrade Program Carey 50 - 50 0%750 512 238 68%Vault retrofit in Q2-Q4 FY 2026.
P2553 Heritage Road Bridge Replacement and Utility Relocation
Santos
200 51 149 26%5,050 2,680 2,370 53%
Reimbursement Agreement and full allocation of funds have been transferred to the City of Chula Vista for the construction of the Pressure Regulating Station.P2584 Res - 657-1 and 657-2 Reservoir Demolitions Marchioro - - - 0%720 - 720 0%No budget for FY 2026.P2608 PL - 8-inch, 850 Zone, Coronado Avenue, Chestnut/Apple Santos 100 1 99 1%2,360 422 1,938 18%90% design plans are in progress.
P2612 PL - 12-inch, 711 Zone, Paso de Luz/Telegraph Canyon Road
Gentry
60 2 58 3%1,250 931 319 74%Revegetation work will be completed throughout the fiscal year. Construction is closed out.
P2614 485-1 Reservoir Interior/Exterior Coating Santos 50 - 50 0%1,375 1,064 311 77%Two year warranty is set to expire January 2026.
P2623 Central Area to Otay Mesa Interconnection Pipelines Combination Air/Vacuum Valve Replacements Marchioro 15 - 15 0%600 219 381 37%Planning of the next project phase anticipated to begin Q4 FY 2026.
P2630 624-3 Reservoir Automation of Chemical Feed System Marchioro 15 4 11 27%675 20 655 3%Design of the project anticipated to begin Q3 FY 2026.
P2638 Buildings and Grounds Refurbishments Payne 350 2 348 1%745 291 454 39%Landscape Phase II planned for Q2-Q3 FY 2026 ($417K).
P2639 Vista Diego Hydropneumatic Pump Station Replacement
Marchioro
250 9 241 4%2,500 757 1,743 30%
A purchase order was issued to pre-purchase a domestic pump skid Q1 2026. Completion of design to install skid anticipated Q3 FY 2026. Construction completion scheduled for Q4 FY 2027.
P2642 Rancho Jamul Pump Station Replacement Marchioro 20 - 20 0%2,500 143 2,357 6%Project coordinated with 1655-1 Reservoir (P2040). See P2040 for updates.
P2646 North District Area Cathodic Protection Improvements
Marchioro
50 - 50 0%1,220 51 1,169 4%Design of cathodic protection improvements along Jamacha Road on hold due to turnover in staff.
P2647 Central Area Cathodic Protection Improvements Marchioro 50 - 50 0%2,200 221 1,979 10%Planning of the next project phase anticipated to begin Q4 FY 2026.P2649 HVAC Equipment Purchase Payne 46 60 (14) 130%279 212 67 76%RTU 7 & 8 Q2-Q3 FY 2026 ($94K).
P2652 520 to 640 Pressure Zone Conversion Marchioro 5 - 5 0%250 37 213 15%Project is on hold until PDR for P2195 & P2196 is completed.
P2654 Heritage Road Interconnection Improvements
Marchioro
5 - 5 0%200 40 160 20%
No expenditures anticipated in FY 2026. Project on hold pending coordination with the City of San Diego.P2658 832-2 Pump Station Modifications Marchioro 5 - 5 0%600 10 590 2%No expenditures anticipated in FY 2026.P2659 District Boardroom Improvements Kerr 25 - 25 0%300 186 114 62%Project remains on target for FY 2026.
P2663 Potable Water Pressure Vessel Program
Marchioro
400 29 371 7%3,200 1,099 2,101 34%
Contractor progressing with construction submittals to replace 711 Pump Station Surge Tank. Construction completion scheduled for Q4 FY 2026. Expenditures on track.P2664 Otay Mesa Dual Piping Modification Program Gentry 25 - 25 0%350 36 314 10%Planning will start at the end of FY 2026.P2665 PL - 12-inch Pipeline Replacement, 870 Zone, Cactus Road Santos 5 - 5 0%210 - 210 0%Minimal expenses are projected for FY 2026.
P2666 Low Head and High Head Pump Stations Demolition
Marchioro
5 - 5 0%750 - 750 0%
No expenditures anticipated in FY 2026. Completion of construction scheduled beyond six-year planning budget.
P2674 System Pressure Reducing Program Ready 10 - 10 0%100 16 84 16%Expenses are planned for later in FY 2026.
P2676 980-2 PS Motors and Motor Control Center Replacements
Marchioro
50 10 40 20%3,242 847 2,395 26%
Expenditures will be accelerated for FY 2026 to account for an electric motor replacement and pilot to change a pump control valve type.
P2683 Pump Station Safety, Monitoring, and Automation Improvements Marchioro 100 14 86 14%550 150 400 27%Remote machine monitoring at the 870-2 Pump Station scheduled for Q4 FY 2026.
P2684 Zero Emission Vehicles and Charging Infrastructure
Santos
300 32 268 11%2,000 250 1,750 13%
Five (5) Operations Charging Stations are being finalized and bid opening is scheduled for December/January of FY 2026.P2688 Standby Power Renovations - Potable Water Stanley 150 252 (102) 168%1,500 308 1,192 21%On schedule.P2693 PL – 12 & 16-inch, 1296 Zone, Jefferson Rd., Lyons Valley Rd to Jamul Dr.Santos 50 - 50 0%3,950 - 3,950 0%Minimal expenses are projected FY 2026.P2694 Operations Replacement Communication Radios Stanley 20 - 20 0%155 - 155 0%On hold until FY 2027.P2696 1296-1 Reservoir Interior/Exterior Coating Ready - - - 0%1,700 - 1,700 0%No expenditures budgeted in FY 2026.
FISCAL YEAR-TO-DATE, 09/30/25 LIFE-TO-DATE, 09/30/25
https://otaywater365.sharepoint.com/sites/engcip/Shared Documents/X-CIP Quarterly Reports/CIP Qtr Reports/FY 2026/Q1/Expenditures/FY2026 1st Qtr CIP Exp - FINAL.xlsx Page 1 of 4 11/25/2025
FISCAL YEAR 2026 1ST QUARTER REPORT(Expenditures through 9/30/2025
($000)
ATTACHMENT B
2026 09/30/25
CIP No.Description Project Manager FY 2026 Budget Expenses Balance Expense to Budget %Overall Budget Expenses Balance Expense to Budget %Q1 Comments
FISCAL YEAR-TO-DATE, 09/30/25 LIFE-TO-DATE, 09/30/25
P2698 Improve Fire Sprinkler Protection System at RWCWRF (P)Payne 5 - 5 0%75 - 75 0%FY 2026 design; FY 2027 installation.
P2714 870 Reservoir Storage Bins
Marchioro
70 2 68 3%400 19 381 5%
Project has been placed on hold since concept development work resulted in higher than estimated cost estimates. The cost/benefit of the project will be re-evaluated during the FY 2027 budget cycle. Project will likely be closed out at the end of FY 2026.P2715 Replacement and Update of District’s Utility Network Framework Zhao 100 28 72 28%450 128 322 28%On schedule.
P2716 520 Recirculation Pump Station Upgrades Santos 80 - 80 0%80 - 80 0%Planning will be initiated in the second half of FY 2026.
P2719 Misc. Safety Equipment Zuniga 15 - 15 0%15 - 15 0%Will purchase fall protection portable guardrails in Q2 FY 2026. Estimate $13K.
R2117 RWCWRF Disinfection System Improvements Santos 900 22 878 2%4,825 4,228 597 88%Testing and commissioning is set to resume November 2025.
R2146 Recycled Pipeline Cathodic Protection Improvements
Marchioro
20 - 20 0%1,280 884 396 69%
North District cathodic protection improvements prioritized over recycled pipeline cathodic protection improvements. R2153 Recycled Water Pressure Vessel Program Marchioro 1 - 1 0%1,000 29 971 3%No expenditures anticipated in FY 2026.R2165 Recycled HVAC Equipment Purchase Payne 30 - 30 0%75 - 75 0%FY 2026 design; FY 2027 installation.
R2166 RWCWRF Effluent Pump Station Compressors
Marchioro
10 - 10 0%175 82 93 47%
Compressors were replaced in Q4 FY 2024. Project As-builts were completed in Q4 FY 2025. Project was closed out in Q4 FY 2025.R2168 Improve Fire Sprinkler Protection System at RWCWRF (R)Payne 10 - 10 0%75 - 75 0%FY 2026 design; FY 2027 installation.R2173 RWCWRF Filter Media Replacement Santos 25 - 25 0%260 - 260 0%Planning to proceed in Q4 FY 2026.
S2012 San Diego County Sanitation District Outfall and RSD Outfall Replacement Gentry 250 - 250 0%4,000 1,355 2,645 34%Typically, the costs are incurred at the end of the fiscal year.
S2043 RWCWRF Sludge Handling System Gentry 1 - 1 0%1,500 129 1,371 9%Only minor planning efforts are expected this fiscal year.
S2061 RWCWRF Aeration Controls Consolidation & Optimization Upgrades (S)Gentry 70 - 70 0%220 78 142 35%Expenses are anticipated at the end of the fiscal year.S2071 San Diego Metro Wastewater Capital Improvements Gentry 10 (26) 36 -260%8,300 411 7,889 5%Spending is on target.S2081 Improve Fire Sprinkler Protection System at RWCWRF (S)Payne 10 - 10 0%75 - 75 0%FY 2026 design; FY 2027 installation.S2082 Sewer Manhole Rehabilitation Program Santos 10 - 10 0%2,500 - 2,500 0%Minimal expenses are projected FY 2026.
S2083 Sewer Lift Station Equipment Replacement Program Mederos 45 27 18 60%300 36 264 12%Continuing to make progress. These funds will be fully utilized by the end of the fiscal year.S2084 Laboratory Equipment Capital Purchases Newman 15 13 2 87%15 13 2 87%Equipment ordered. Project complete.
Total Capital Facility Projects Total:8,776 1,969 6,807 22%130,791 29,979 100,812 23%
REPLACEMENT/RENEWAL PROJECTS
P2058 PL - 20-Inch, 1296 Zone, Proctor Valley Road from Melody Road to Highway 94 Santos 150 38 112 25%3,500 291 3,209 8%
Design will resume in Q2 FY 2026 now that easements have been secured to conduct the work.P2171 PL - 20-Inch, 1296 Zone, Proctor Valley Road from Pioneer Way to Melody Road Santos 180 9 171 5%4,595 149 4,446 3%90% design plans are in progress.
P2195 PL - 24 - Inch, 640 Zone, Campo Road - Regulatory Site/Millar Ranch Blalock 50 4 46 8%9,500 51 9,449 1%Preliminary Design Report is in progress. Report to be finalized in FY 2026.
P2196 PL - 24 - Inch, 640 Zone, Millar Ranch Road to 832-1 Pump Station Blalock 50 4 46 8%5,100 51 5,049 1%Preliminary Design Report is in progress. Report to be finalized in FY 2026.
P2533 1200-1 Reservoir Interior & Exterior Coating Santos 75 1 74 1%1,275 1,219 56 96%Address Cathodic Protection issue in Q2/Q3 FY 2026.
P2563 Res - 870-1 Reservoir Improvements Marchioro 10 35 (25) 350%6,497 456 6,041 7%
Project coordinated with the 870-2 Reservoir (CIP P2228). Construction expenditures for CIP P2563 anticipated to begin in Q1 FY 2027 and end in Q1 FY 2028. P2567 1004-2 Reservoir Interior/Exterior Coating & Upgrades Santos 10 6 4 60%1,375 1,343 32 98%Warranty ends Q3 FY 2027.
P2578 711 PS Improvements Marchioro 780 5 775 1%8,000 170 7,830 2%
Contractor progressing construction submittals related to a pilot to restore Pump #3 to original capacity. Construction completion anticipated in Q4 FY 2026. Expenditures on track.P2594 Large Meter Replacement Carey 60 - 60 0%970 672 298 69%Changeouts anticipated in Q3 & Q4 FY 2026.
P2609 PL - 8-inch, 1004 Zone, Eucalyptus Street, Coronado/Date/La Mesa Santos 100 2 98 2%2,900 1,137 1,763 39%Design is nearing 90%. Complete in Q2 FY 2026.P2611 Quarry Road Bridge Replacement and Utility Relocation Gentry 5 - 5 0%3,600 124 3,476 3%
P2615 PL - 12-Inch Pipeline Replacement, 803 PZ, Vista Grande Santos 300 9 291 3%3,855 181 3,674 5%Design is nearing 90%. Complete in Q2 FY 2026.
P2616 PL - 12-Inch Pipeline Replacement, 978 Zone, Pence Drive/Vista Sierra Drive Santos 10 - 10 0%4,200 1,687 2,513 40%Design is nearing 90%. Complete in Q2 FY 2026.P2631 1485-2 Reservoir Interior/Exterior Coating & Upgrades Santos 1,000 368 632 37%1,790 1,142 648 64%Phase 1 of the project is 90% complete.
P2655 La Presa Pipeline Improvements Gentry 25 - 25 0%1,750 281 1,469 16%Planning work will start at the end of the fiscal year. Unexpected projects may delay this project.
P2656 Regulatory Site Desilting Basin Improvements Gentry 5 - 5 0%150 7 143 5%Only minor coordination efforts are expected this fiscal year.P2657 1485-1 Reservoir Interior/Exterior Coating & Upgrades Ready 190 - 190 0%1,150 7 1,143 1%Expenses are planned for later in FY 2026.
P2662 Potable Water Meter Change Out Carey 1,000 27 973 3%31,645 259 31,386 1%Project started in Q1 but will ramp up in Q3 FY 2026.
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FISCAL YEAR 2026 1ST QUARTER REPORT(Expenditures through 9/30/2025
($000)
ATTACHMENT B
2026 09/30/25
CIP No.Description Project Manager FY 2026 Budget Expenses Balance Expense to Budget %Overall Budget Expenses Balance Expense to Budget %Q1 Comments
FISCAL YEAR-TO-DATE, 09/30/25 LIFE-TO-DATE, 09/30/25
P2670 Administration and Operations Roof Repairs and Replacement Payne 50 - 50 0%350 - 350 0%Admin. Building - Spray Polyurethane Foam; Fleet Shop Repairs FY 2026.P2672 District Roof Repairs and Replacement Program Payne 100 - 100 0%340 - 340 0%Upgrades in FY 2027 and FY 2028.P2673 803-4 Reservoir Interior/Exterior Coating Ready 20 - 20 0%2,900 - 2,900 0%No expenditures anticipated in FY 2026.
P2675 458-1 and 458-2 Reservoirs Site Pavement Refurbishment Gentry 25 - 25 0%450 15 435 3%Planning efforts have been delayed until the end of the fiscal year.P2677 PL - 16-Inch, 870 Zone, La Media Road and Airway Road Utility Relocations Gentry 50 2 48 4%3,100 2,381 719 77%Minor work needed during warranty period.P2680 PL - 12-inch Pipeline Replacement, 1530 Zone, Vista Diego Road Marchioro 5 - 5 0%700 78 622 11%No expenditures anticipated in FY 2026.
P2681 PL-12-Inch, 1655 Zone, Presilla Drive Pipeline Replacement Marchioro 25 - 25 0%1,950 130 1,820 7%Project coordinated with 1655-1 Reservoir (P2040) Project. See P2040 for updates.
P2682 AMI Project Carey 20 22 (2) 110%870 684 186 79%Meter lids came in later than anticipated, which accounted for the higher expense in Q1 FY 2026.
P2685 980/711 PRS Renovation - Proctor Valley Rd Marchioro 10 - 10 0%850 - 850 0%
The District's as-needed corrosion consultant will inspect the existing facility to provide a better understanding of the project scope in Q2 FY 2026.
P2686 870 PZ Seismic Vault Renovation Gentry 5 - 5 0%400 - 400 0%Planning work will start at the end of the fiscal year.P2687 Steele Canyon Rd Bridge 803 PZ 20-inch WL Renovation Blalock 197 6 191 3%600 83 517 14%Construction phase in Q2/Q3 FY 2026.
P2689 944-1-9 Pump Station Meter Vault Renovation Gentry 10 - 10 0%200 - 200 0%Planning work will start at the end of the fiscal year.P2690 850-4 Reservoir Interior/Exterior Coating Ready 125 - 125 0%2,400 - 2,400 0%No expenditures anticipated in FY 2026.
P2691 City of San Diego - Otay 2nd Pipeline Phase 4 Interconnections Relocation Ready 50 - 50 0%1,170 48 1,122 4%
Coordinated with the City and their consultant on the design and interconnect agreements. Design of new interconnections will begin later in FY 2026.P2692 1485-2 PS Yard Piping Modifications Marchioro 1 - 1 0%600 - 600 0%No expenditures anticipated in FY 2026.
P2695 Relocation of Data Center Kerr 25 114 (89) 456%250 146 104 58%This project is complete. Will suggest close out of the project.
P2697 Valve Replacement Program - Phase 2 Mederos 500 90 410 18%12,000 1,143 10,857 10%On-going valve replacement will continue through the year.P2699 Miscellaneous Replacements and Improve Fire Sprinkler Protection System in the Warehouse Payne 200 - 200 0%525 83 442 16%Upgrades in FY 2026 and FY 2027.
P2700 Pump Station Equipment Replacement Program Mederos 250 9 241 4%1,250 363 887 29%These funds will be fully expended by the end of the fiscal year.
P2706 PL-16-Inch Transmission Main Assessment & Repair, 980 Zone, Olympic Parkway Blalock 200 46 154 23%3,060 136 2,924 4%
Assessment phase completed. Design phase anticipated in FY 2026. Construction phase anticipated in FY 2027.P2707 Pipeline Relocation for County Storm Drain Replacement Projects Ready 200 17 183 9%500 59 441 12%No further expenses anticipated for this project.P2708 1296-2 Reservoir Interior/Exterior Coating Ready - - - 0%2,550 - 2,550 0%No expenditures budgeted in FY 2026.
P2709 ADA Compliance for Administration and Operation Buildings Payne 60 - 60 0%500 17 483 3%Employee parking - Q3 FY 2026; Admin doors - Q4 FY 2026.
P2710 Conversion of the 803-4 Reservoir Disinfection System to LAS Marchioro 10 - 10 0%500 - 500 0%Design phase anticipated to begin Q2 FY 2026.
P2711 City of Tijuana Pipeline Connection Upgrades Ready 15 3 12 20%650 5 645 1%Design is expected to move forward later in FY 2026.
P2712 PL-12-Inch Steel Pipeline Replacement, 850 Zone, Sweetwater Springs Blvd, Southeast of Jamacha Blvd.Santos 10 - 10 0%2,000 - 2,000 0%Minimal expenses are projected in FY 2026.P2713 PL-14-Inch ACP Pipeline Replacement, 640 Zone, SR125 Crossing and Orville Street Gentry 10 - 10 0%2,500 - 2,500 0%Planning will start at the end of FY 2026.
P2717 Otay Mesa Pipeline Cathodic Protection Improvements - Phase 2 Marchioro 20 - 20 0%250 - 250 0%
North District Cathodic Protection Improvements prioritized over Otay Mesa Pipeline Cathodic Protection Improvements. R2121 Res - 944-1 Reservoir Cover/Liner Replacement Marchioro 50 - 50 0%5,000 27 4,973 1%No expenditures anticipated in FY 2026.R2148 Large Meter Replacement - Recycled Carey 15 - 15 0%175 59 116 34%Changeout anticipated in Q3 and Q4 FY 2026.
R2152 Recycled Water Meter Change-Out Carey 75 - 75 0%1,010 - 1,010 0%Project started in Q1 but will ramp up in Q3 FY 2026.R2156 RecPL - 14-inch RWCWRF Effluent Force Main Improvements Marchioro 5 - 5 0%1,300 259 1,041 20%No expenditures anticipated in FY 2026.R2157 RWCWRF Backwash Supply Pumps Upgrade Santos 200 2 198 1%500 196 304 39%Planning has been initiated.R2158 RWCWRF Stormwater Pond Improvements (R)Blalock 5 - 5 0%175 - 175 0%No expenditures anticipated in FY 2026.R2159 RecPL - 16-Inch, 680 Zone, Olympic Parkway Recycled Pipeline Replacement Gentry 50 64 (14) 128%4,900 4,521 379 92%The project is substantially complete. R2161 450-1R Reservoir Interior/Exterior Coating & Upgrades Ready 10 - 10 0%4,600 - 4,600 0%No expenditures anticipated in FY 2026.
R2163 450-1 RW Res Disinfection Injection Vault Renovation Marchioro 5 - 5 0%300 - 300 0%
The District's as-needed corrosion consultant will inspect the existing facility to provide a better understanding of the project scope in Q2 FY 2026.
R2164 450-1 RW Res Stormwater Improvements Blalock 50 2 48 4%814 120 694 15%
Assessment phase on allowable construction materials in sensitive habitat areas in Q2/Q3 FY 2026. Design phase in Q4 FY 2026.R2167 RecPL - 14-Inch, 927 Zone, Force Main Road Improvements and Erosion Repairs Blalock 256 - 256 0%561 9 552 2%No expenditures anticipated in FY 2026.
R2169 Pump Station Equipment Replacement Program (R)Mederos 60 - 60 0%600 88 512 15%These funds will be fully expended by the end of the fiscal year.R2172 RWCWRF Tertiary Trough Replacement Santos 25 - 25 0%250 - 250 0%Minimal expenses are projected FY 2026.R2174 Salt Creek Easement Improvements Blalock 100 - 100 0%500 - 500 0%Design level expenses anticipated in FY 2026.
S2049 Calavo Basin Sewer Rehabilitation - Phase 2 Blalock 31 - 31 0%1,173 79 1,094 7%Planning level expenses anticipated in FY 2026.
S2050 Rancho San Diego Basin Sewer Rehabilitation - Phase 2 Blalock 44 - 44 0%1,124 7 1,117 1%Planning level expenses anticipated in FY 2026.
S2054 Calavo Basin Sewer Rehabilitation - Phase 3 Blalock 10 - 10 0%1,328 - 1,328 0%Planning level expenses anticipated in FY 2026.
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FISCAL YEAR 2026 1ST QUARTER REPORT(Expenditures through 9/30/2025
($000)
ATTACHMENT B
2026 09/30/25
CIP No.Description Project Manager FY 2026 Budget Expenses Balance Expense to Budget %Overall Budget Expenses Balance Expense to Budget %Q1 Comments
FISCAL YEAR-TO-DATE, 09/30/25 LIFE-TO-DATE, 09/30/25
S2060 Steele Canyon Pump Station Replacement Gentry 10 - 10 0%1,900 - 1,900 0%Expenses are anticipated at the end of the fiscal year.
S2066 Rancho San Diego Basin Sewer Rehabilitation - Phase 3 Blalock 5 - 5 0%950 - 950 0%Planning level expenses anticipated in FY 2026.
S2069 Cottonwood Sewer Lift Station Replacement Marchioro 300 28 272 9%9,000 608 8,392 7%
Design consultant progressing with preliminary design report revisions for an alternative to reduce project cost. Construction of the project is currently estimated for completion in FY 2031. S2072 RWCWRF Rotary Screen Replacement Santos 5 - 5 0%600 2 598 0%Minimal expenses are projected FY 2026.
S2074 RWCWRF Stormwater Pond Improvements (S)Blalock 5 - 5 0%175 - 175 0%Planning level expenses anticipated in FY 2026.S2076 RWCWRF Grit Chamber Improvements Santos 4 - 4 0%250 - 250 0%Minimal expenses are projected FY 2026.
S2077 RWCWRF Blowers Renovation Gentry 70 - 70 0%400 98 302 25%Expenses are anticipated at the end of the fiscal year.S2079 Steele Canyon Rd Bridge 6-inch Sewer FM Renovation Blalock 265 1 264 0%350 2 348 1%Construction phase anticipated Q4 FY 2026.S2080 Standby Power Renovations - Sewer Stanley - - - 0%200 - 200 0%No expenditures budgeted in FY 2026.
Total Replacement/Renewal Projects Total:7,848 914 6,934 12%173,402 20,673 152,729 12%
CAPITAL PURCHASE PROJECTSP2282Vehicle Capital Purchases Stanley 1,139 - 1,139 0%12,500 7,037 5,463 56%Spending expected in Q3 FY 2026.P2286 Field Equipment Capital Purchases Stanley 37 - 37 0%3,712 2,694 1,018 73%Spending expected in Q2 FY 2026.P2571 Data Center Network Data Storage and Infrastructure Enhancements Kerr 25 11 14 44%530 493 37 93%Project is on target.P2572 Enterprise Resource Planning (ERP) Replacement Kerr 303 37 266 12%993 351 642 35%Project is on target.P2718 Utility Billing (UB) Software Kerr 530 - 530 0%1,675 - 1,675 0%Recent contract sign-off complete.R2160 Recycled Water Field Equipment Capital Purchases Stanley - - - 0%896 - 896 0%No expenditures budgeted in FY 2026.R2162 Vehicle Capital Purchases - Recycled Stanley 31 - 31 0%500 93 407 19%No expenditures budgeted in FY 2026.S2075 Field Equipment Capital Purchases Stanley - - - 0%500 - 500 0%No expenditures budgeted in FY 2026.S2078 Vehicle Capital Purchases - Sewer Stanley 1,000 - 1,000 0%1,160 - 1,160 0%Vehicles ordered; no spending date known.
Total Capital Purchase Projects Total:3,065 48 3,017 2%22,466 10,668 11,798 47%
DEVELOPER REIMBURSEMENT PROJECTS
P2595 PL - 16-inch, 624 Zone, Village 3N - Heritage Road, Main St/Energy Way Cameron 1 - 1 0%336 - 336 0%This is a developer reimbursement project.P2596 PL – 16-inch, 624 Zone, Village 3N – Main St, Heritage Rd/Wolf Canyon Cameron 2 - 2 0%900 - 900 0%This is a developer reimbursement project.P2598 PL-16-Inch, 624 Zone, Village 8W – Main St, La Media/Village 4 Cameron 2 - 2 0%280 - 280 0%This is a developer reimbursement project.P2599 PL-16-Inch, 624 Zone, Village 8W- Otay Valley Rd, School/Village 8E Cameron 1 - 1 0%500 - 500 0%This is a developer reimbursement project.P2602 PL - 16-inch, 624 Zone, Otay Valley Road, SR 125 Bridge Cameron 2 - 2 0%280 - 280 0%This is a developer reimbursement project.P2603 PL - 16-inch, 711 Zone, Hunte Parkway, SR 125 Bridge Cameron 2 - 2 0%340 - 340 0%This is a developer reimbursement project.R2028 RecPL – 8-in, 680 Zone, Heritage Road to Main Street Cameron 1 - 1 0%900 - 900 0%This is a developer reimbursement project.R2037 RecPL – 8-in, 680 Zone, Main Street/Otay Valley Road – Village 8W Cameron 2 - 2 0%620 - 620 0%This is a developer reimbursement project.R2038 RecPL – 8-in, 680 Zone, Village 3N – Main St, Heritage Rd/Wolf Canyon Cameron 2 - 2 0%470 - 470 0%This is a developer reimbursement project.R2047 RecPL – 12-in, 680 Zone, La Media Road - Birch/Main St Cameron 1 - 1 0%550 - 550 0%This is a developer reimbursement project.R2136 RecPL – 8-in, 680 Zone, Otay Valley Rd, SR 125 Bridge Cameron 2 - 2 0%140 - 140 0%This is a developer reimbursement project.R2137 RecPL - 8-in, 815 Zone, Hunte Parkway, SR 125 Bridge Cameron 1 - 1 0%170 - 170 0%This is a developer reimbursement project.
Total Developer Reimbursement Projects Total:19 - 19 0%5,486 - 5,486 0%
149 GRAND TOTAL 19,708$ 2,931$ 16,777$ 15%332,145$ 61,320$ 270,825$ 18%
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Otay Water District
Capital Improvement Program
Fiscal Year 2026 First Quarter
(through 9/30/2025)
ATTACHMENT C
870-2 Reservoir –
Concrete pumped for
floor and ring wall
7-1-25
Background
The approved CIP Budget for Fiscal Year 2026
consists of 149 projects that total $19.70 million.
These projects are broken down into four categories.
1.Capital Facilities $ 8.77 million
2.Replacement/Renewal $ 7.84 million
3.Capital Purchases $ 3.06 million
4.Developer Reimbursement $ 19 thousand
Overall expenditures through the First Quarter of
Fiscal Year 2026 totaled nearly $2.93 million, which is
approximately 15% of the fiscal year budget.
2
Fiscal Year 2026
First Quarter Update
($000)
CIP
CAT Description FY 2026
Budget
FY 2026
Expenditures
%
FY 2026
Budget
Spent
Total
Life-to-Date
Budget
Total
Life-to-Date
Expenditures
%
Life-to-Date
Budget
Spent
1 Capital
Facilities $8,776 $1,969 22%$130,791 $29,979 23%
2 Replacement/
Renewal $7,848 $914 12%$173,402 $20,673 12%
3 Capital
Purchases $3,065 $48 2%$22,466 $10,668 47%
4 Developer
Reimbursement $19 0 0%$5,486 0 0%
Total:$19,708 $2,931 15%$327,145 $61,320 18%
3
Fiscal Year 2026
First Quarter
CIP Budget Forecast vs. Expenditures
4
$19,708,000
$2,931,900
$18,722,600
95%
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
FISCAL YEAR PERIOD IN MONTHS
FY 2026 Budget
Forecast
Total Expenditures
Through 9/30/25
5
CIP Projects in Construction
Olympic Parkway
Recycled Water Pipeline
Replacement (R2159)
Project will install
approximately 5,730
linear feet of 16-inch
recycled water line in
Olympic Parkway, and
removal/abandonment of
the existing 20-inch
recycled water line.
Budget: $6,000,000
NTP: March 25, 2024
Substantially Completed
Project is within budget.
Otay Ranch
High School
Chula Vista
6
CIP Projects in Construction
7
6-18-258-4-25
Inspection of Anode wire
performed on 8-1-25
Anode wire work being
redone
8-1-25
CIP Projects in Construction
RWCWRF Disinfection
System Improvements
(R2117 & R2157)
Project will replace
existing chlorine system
with Trojan UV system
and replacement of
existing filter backwash
supply pumps.
Combined
Budget: $4,775,000
NTP: April 8, 2024
Trojan UV system
installed and began
testing.
Project is within budget.
8
9
CIP Projects in Construction
Infrared Temperature Testing on new
Equipment – Southern Contracting
7-10-25
7-21-25
First day and First testing of Microbiological
Testing sample of UV Banks
CIP Projects in Construction
870-2 Reservoir 3.4 MG &
870-1 Liner Improvements
(P2228 & P2563)
Work includes construction
of a 3.4-million-gallon (MG)
Type 1 pre-stressed concrete
reservoir. Replacement of
the existing membrane
floating cover and liner with a
new membrane system on
the 870-1 Reservoir. The
project also includes lowering
the existing Reservoir's 30-
inch inlet pipe.
Budget: $23,900,000
NTP: October 28, 2024
Project is within budget.
10
11
CIP Projects in Construction
Erecting forms for walls
Overall progress Roof decking installation
8-11-25
9-5-25
Rebar for column
being set
9-30-25
7-18-25
CIP Projects in Construction
1485-2 (1.6 MG) Reservoir
Interior/Exterior Coating
(P2631)
Renovation work includes
removing and replacing the
interior and exterior coatings
of the welded steel reservoir
including structural
modifications and upgrades.
Budget: $1,620,000
NTP: January 13, 2025
Interior coating completed,
working on exterior coating.
Project is within budget.
12
13
CIP Projects in Construction
New coating on roof Install exterior containment
for coating removal
7-1-25
Applying shell coating
7-14-25 8-1-25
9-29-25
Roof coated, preparing to
remove old shell coating Applying floor coating
8-15-25
CIP Projects in Construction
711-1 Pump Station
Improvements Phase I
(P2578 & P2663)
Installation of a pre-
purchased vertical turbine
pump, reconfiguration and
replacement of existing
suction and discharge piping,
and replacement of an
existing surge tank.
Budget: $4,800,000
Contract Award to Jeanette
Company, Inc. at June 2025
Board Meeting.
Pump delivery scheduled for
end of November 2025.
Project is within budget.
14
15
CIP Projects in Construction
Gathering measurements before construction
8-25-25 8-25-25
CIP Projects in Construction
Heritage Road Bridge Utility
Relocation &624-340 PRS
(P2553 & P2405)
The City of Chula Vista is
constructing a new bridge on
Heritage Road. OWD has
requested the City to include
the construction of a new 16-
inch potable water steel
pipeline and reserve room
for a future 8-inch recycled
water pipeline. A 624-340
PRS will also be constructed.
Budget: $5,050,000
City awarded a construction
contract in Oct 2024.
Reimbursement Agreement
executed in Q3 FY 2025.16
17
CIP Projects in Construction
Pipe in Bridge Current Bridge Progress
Span 3 rebar installation ready of Soffit Pour
7-30-25
9-19-25 9-30-25
8-11-25
Span 3 After Soffit Pour
Construction Contract Status
18
FY 2026 CIP CONSTRUCTION PROJECTS as of September 30, 2025
CIP NO.PROJECT TITLE CONTRACTOR BASE BID AMOUNT
CONTRACT AMOUNT W/ ALLOWANCES
NET CHANGE ORDERS FY 2025*NET CHANGE ORDERS LTD*
CURRENT CONTRACT AMOUNT
TOTAL EARNED TO DATE
% CHANGE ORDERS W/ ALLOWANCE CREDIT**
% COMPLETE
EST. COMP. DATEPRIOR YEARS Q1 %YTD %PROJECT TOTAL %
R2159 Olympic Parkway Recycled Water Pipeline Replacement
Burtech Pipeline, Inc.$3,756,210 $3,945,035 $47,561 $0 0.0%$0 0.0%$47,561 1.3%$3,829,800 $3,529,061 -2.9%92.1%October 2025
R2117 & R2157 RWCWRF Disinfection System Improvements
GSE Construction Company, Inc.$3,375,400 $3,491,400 $0 $0 0.0%$0 0.0%$0 0.0%$3,375,400 $2,967,241 -3.3%87.9%March 2026
P2228 & P2563 870-2 Reservoir & 870-1 Liner/Cover Replacement Pacific Hydrotech Corp.$20,141,764 $20,896,264 $0 $0 0.0%$0 0.0%$0 0.0%$20,141,764 $4,582,834 -3.6%22.8%Sept 2027
P2631 & P2567
1485-2 Reservoir Coating and 1004-2 Ladder Door Repair
Unified Field Services Corp.$1,249,694 $1,304,694 $0 ($24,003)-1.9%($24,003)-1.9%($24,003)-1.9%$1,225,691 $853,408 -6.1%69.6%November 2025
P2578 &P2663 711 Pump Station Improvements Phase I Jeannette Company, Inc.$643,000 $698,000 $0 $0 0.0%$0 0.0%$0 0.0%$643,000 $0 -7.9%0.0%June 2026
TOTALS:$29,166,068 $30,335,393 $47,561 ($24,003)-0.1%($24,003)-0.1%$23,558 0.1%$29,215,655 $11,932,544 -3.7%
*NET CHANGE ORDERS DO NOT INCLUDE ALLOWANCE ITEM CREDITS. IT'S A TRUE CHANGE ORDER PERCENTAGE FOR THE PROJECT
**THIS CHANGE ORDER RATE INCLUDES THE CREDIT FOR UNUSED ALLOWANCES
19
Consultant Contract Status
Consultant Contract Status
20
Consultant Contract Status
21
QUESTIONS?
22