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04-01-26 Board Meeting Packet
1 OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY BOARD OF DIRECTORS MEETING BY TELECONFERENCE 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA WEDNESDAY April 1, 2026 3:30 P.M. AGENDA 1. ROLL CALL a) BOARD ACTION TO APPROVE REMOTE ATTENDANCE FOR DIRECTOR GARY CROUCHER DUE TO JUST CAUSE. HE WILL REMOTELY ATTEND THE MEETING FROM 10566 VILLA BONITA, SPRING VALLEY, CA 91978 2. PLEDGE OF ALLEGIANCE 3. APPROVAL OF AGENDA 4. APPROVAL OF THE MINUTES OF THE REGULAR BOARD MEETING OF MARCH 4, 2026 5. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD’S JURISDICTION INCLUDING AN ITEM ON TODAY’S AGENDA The District’s meeting is live streamed. Information on how to participate in the District’s meeting can be found at this link: https://otaywater.gov/board-of-direc- tors/agenda-and-minutes/board-agenda/ Members of the public may also submit their comments on agendized and non- agendized items via email to BoardSecretary@otaywater.gov, or may address the Board by submitting a Request to Speak Form thirty (30) minutes prior to the start of the meeting. If you submit a Request to Speak Form, call-in instructions will be sent to the email provided on the form. Your request to speak will be acknowledged during the “Public Participation” portion of the meeting when the Board will hear your comment. When called to speak, please state your name and the city in which you reside. Please note that you will be provided three (3) minutes to speak and email comments must not take more than three (3) minutes to read. The Board is not permitted to enter into a dialogue with the speaker during this time. 2 ACTION ITEMS 6. BOARD a) ADOPT THE LEGISLATIVE PROGRAM POLICY GUIDELINES AND THE ANTICIPATED 2026 TOP 10 LEGISLATIVE AND REGULATORY PRIORI- TIES (TENILLE OTERO) PUBLIC HEARING 7. PUBLIC HEARING ON BOARD OF DIRECTORS PER DIEM RATE THE BOARD WILL BE HOLDING A PUBLIC HEARING TO HEAR THE PUBLIC’S COMMENTS ON THE PROPOSED 4.97% INCREASE TO THE BOARD OF DI- RECTORS’ PER DIEM RATE FOR ATTENDING MEETINGS AND PERFORM- ING THE DUTIES OF THEIR OFFICE a) ADOPT ORDINANCE NO. 603 TO APROVE THE PROPOSED 4.97% IN- CREASE TO THE BOARD OF DIRECTORS’ PER DIEM RATE FOR AT- TENDING MEETINGS AND PERFORMING THE DUTIES OF THEIR OF- FICE, AND ADOPT RESOLUTION NO. 4471 AMENDING POLICY 08 TO REFLECT THE NEW PER DIEM RATE CONSENT ITEMS 8. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PARTICULAR ITEM: a) ADOPT RESOLUTION NO. 4472 AMENDING POLICY 29, CLAIMS HAN- DLING PROCEDURE, TO DELEGATE AUTHORITY TO THE GENERAL MANAGER TO TAKE ACTION ON GOVERNMENT CLAIMS (JOSE MAR- TINEZ) b) AUTHORIZE THE GENERAL MANAGER TO ENTER INTO A PROFES- SIONAL SERVICES AGREEMENT WITH REWARD STRATEGY GROUP, INC. FOR A CLASSIFICATION AND TOTAL COMPENSATION AND BENE- FITS STUDY FOR A TOTAL AMOUNT NOT-TO-EXCEED $119,480 (SUZIE LAWSON) ACTION ITEMS 9. BOARD a) APPROVE THE DISTRICT’S PROPOSED FY2027 – FY2030 STRATEGIC PLAN (MICHAEL KERR) b) DISCUSS THE 2026 BOARD MEETING CALENDAR (JENNY DIAZ) 3 REPORTS 10. GENERAL MANAGER’S REPORT 11. SAN DIEGO COUNTY WATER AUTHORITY UPDATE 12. METRO WASTEWATER JOINT POWERS AUTHORITY UPDATE 13. PRESIDENT’S REPORT/REQUESTS 14. DIRECTORS' REPORTS/REQUESTS OTAY WATER DISTRICT FINANCING AUTHORITY 15. NO MATTERS TO DISCUSS 16. ADJOURNMENT All items appearing on this agenda, whether or not expressly listed for action, may be deliberated and may be subject to action by the Board. The Agenda, and any attachments containing written information, are available at the District’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 participate 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 I posted a copy of the foregoing agenda near the regular meeting place of the Board of Directors of Otay Water District, Spring Valley, California, said time being at least 72 hours in advance of the regular meeting of the Board of Directors (Government Code Section §54954.2). /s/ Jenny Diaz, District Secretary 1 MINUTES OF THE BOARD OF DIRECTORS MEETINGS OF THE OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY March 4, 2026 The meeting was called to order by Vice President Robak at 3:32 p.m. 1. ROLL CALL Directors Present: Robak, Gonzalez, Croucher, and Lopez Directors Absent: Rivera Staff Present: General Manager, Jose Martinez; General Counsel, Dan Shinoff; Chief Financial Officer, Joe Beachem; Chief of Administrative Services, Kevin Koeppen; Engineering Manager, Kevin Cameron; Chief of Operations, Andrew Jackson; and District Secretary, Jenny Diaz. Vice President Robak indicated that formal Board action was required to approve the remote attendance of Director Croucher due to just cause. A motion to approve the remote attendance of Director Croucher was made by Director Lopez, seconded by Director Gonzalez, and carried with the following vote: Ayes: Directors Robak, Gonzalez, and Lopez Noes: None Abstain: None Absent: Director Rivera 2. PLEDGE OF ALLEGIANCE 3. APPROVAL OF AGENDA A motion to approve the agenda was made by Director Lopez, seconded by Director Gonzalez, and carried with the following vote: Ayes: Directors Robak, Gonzalez, Croucher, and Lopez Noes: None Abstain: None Absent: Director Rivera 4. APPROVAL OF THE MINUTES OF THE REGULAR BOARD MEETING OF FEBRUARY 4, 2026 AGENDA ITEM 4 2 A motion to approve the minutes of the regular board meeting of February 4, 2026, was made by Director Croucher, seconded by Director Gonzalez, and carried with the following vote: Ayes: Directors Robak, Gonzalez, Croucher, and Lopez Noes: None Abstain: None Absent: Director Rivera 5. WATER CONSERVATION GARDEN UPDATE Ms. Lauren Magnuson, Executive Director for the Water Conservation Garden, began by congratulating the District on its nomination for an environmental stewardship award. Ms. Magnuson also shared various updates including: - Attending a tour of the Levy Water Treatment Plant, operated by the Helix Water District, stating she learned a lot. - New partnership formed with gardener Nan Sterman, who will hold a workshop on March 14, 2026. - The Garden hosted a Veterans East County Alliance (VECA) luncheon and introduced the Garden to many new visitors. - Volunteer Program Focus: A recent recruitment drive added 14 new volunteers. As of January 2026, volunteers have contributed 6,992 hours. Volunteers also attended a tour of Cuyamaca College’s Center for Water Studies, which focuses on ensuring the community knows about the water industry and the jobs available. - Upcoming Events: “TomatoMania” is scheduled for March 6-7, 2026, with Otay staffing a booth on Friday; the “Spring Garden & Butterfly Festival,” a major fundraiser, is set for May 2, 2026, and is expected to draw over 4,000 people. Ms. Magnuson indicated that year to date, 1,679 Otay Water District ratepayers have visited the Garden. - Community Engagement & Upgrades: School field trips are fully booked for the year. Exhibit upgrades include a renovated Fire Wise Exhibit, which has not been updated in about 20 years; a new DIY Rain Barrel exhibit, and a future “Nifty 50” exhibit. - Future Goals: Ms. Magnuson’s primary long-term goal is to upgrade the amphitheater to generate revenue and host community events. Director Croucher inquired about Dr. Richard Wright’s recent $5,000 sponsorship and whether he was given any recognition with a plaque or something similar. Ms. Magnuson stated that signs would be posted at the Garden within the next two weeks to acknowledge their large donors. One in particular is being created for Mr. Wright, which upon walking into the Garden, will indicate “The Wright Way”. 3 Regarding the upgrade of the Firewise exhibit, Director Croucher inquired whether the Garden had reached out to CalFire regarding a potential sponsorship. Ms. Magnuson indicated that they have not done so to date. She also noted that Helix Water recently met with several fire chiefs from the Heartland and Lakeside Fire Districts, who are valuable resources. Ms. Magnuson added that once plantings and signage are complete, they will reach out to the community for potential sponsorships. Director Croucher requested that Ms. Magnuson contact him regarding the CalFire sponsorship for the Fire Wise garden, as they were one of the original sponsors. Director Croucher inquired about when volunteers were last recognized and thanked. Ms. Magnuson stated that the Garden hosts an annual brunch in June and, once the date is finalized, she will invite the Directors should they wish to thank the volunteers. She also noted that a volunteer documentary is currently in progress and that the Directors will be invited as well. Regarding the TomatoMania event, Director Croucher inquired why the District would not staff a booth on both Friday and Saturday. General Manager Martinez indicated that he would look into the matter and report back. Director Croucher emphasized the importance of attending and staffing such events. Finally, Director Croucher inquired whether Garden volunteers are provided with attire to indicate they are on duty. Ms. Magnuson stated that volunteers are provided with aprons, team T-shirts, volunteer hour pins, and similar items. She also noted that some volunteers opt out and instead request new pots, which are donated by the community. Director Gonzalez asked Ms. Magnuson about her dream for the Garden. Ms. Magnuson highlighted the value of the Garden’s space, noting her interest in utilizing the amphitheater for speaking engagements and other events. Vice President Robak praised the work, reminisced about the Fire Wise garden’s creation, and encouraged continued partnership with the Heritage of the Americas Museum. In general, the Directors expressed strong support for Ms. Magnuson’s work and leadership. 6. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA Vice President Robak opened the floor for public participation on any subject matter within the board’s jurisdiction. There were no requests to speak from virtual attendees or from anyone present in the Board room. 4 CONSENT ITEMS 7. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PARTICULAR ITEM: The Directors indicated they had no comments and did not wish to pull any items for discussion. A motion to approve the following consent calendar items was made by Director Gonzalez, seconded by Director Lopez, and carried with the following vote: Ayes: Directors Robak, Gonzalez, Croucher, and Lopez Noes: None Abstain: None Absent: Director Rivera a) AWARD CONSTRUCTION CONTRACT TO ROLCOM, INC. AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT FOR THE OPERATIONS BUILDING SITE LOCATON 4: ELECTRIC VEHICLE CHARGING STATIONS IN AN AMOUNT NOT-TO-EXCEED $265,642 b) ADOPT RESOLUTION NO. 4470 DESIGNATING SPECIFIC STAFF AS AUTHORIZED AGENTS TO LIAISE WITH THE STATE OF CALIFORNIA’S OFFICE OF EMERGENCY SERVICES (CAL OES) ON THE DISTRICT’S BEHALF IN ALL MATTERS PERTAINING TO DISASTER ASSISTANCE INFORMATIONAL ITEMS 8. ITEMS ARE PROVIDED TO THE BOARD FOR INFORMATIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEMS: a) SECOND QUARTER FISCAL YEAR 2026 CAPITAL IMPROVEMENT PROGRAM REPORT (KEVIN CAMERON) Engineering Manager, Kevin Cameron, provided the staff report and presentation and responded to Board members’ questions and comments. Director Croucher inquired about the change order rate from 5–10 years ago compared to the current rate, noting that it was previously much higher than the current 4.3% (well below the 5% goal). Mr. Cameron explained that because the rate historically exceeded 5%, the District incorporated a KPI into the Strategic Plan, establishing 5% as the benchmark. Director Gonzalez expressed interest in arranging a Board tour of the 870-2 Reservoir to observe the project’s progress. 5 Vice President Robak inquired about seismic standards for new reservoirs. Mr. Cameron confirmed they are designed by a structural engineer based on AWWA standards specific to the region. b) UPDATE AND REVIEW OF THE DISTRICT’S PROPOSED FY2027 – FY2030 STRATEGIC PLAN, AS DISCUSSED DURING THE DECEMBER 8, 2025 BOARD WORKSHOP (MICHAEL KERR) The Board waived presentation of this item; however, General Manager Martinez reported that the draft plan has been reviewed by committees and is being prepared for a full presentation to the board for adoption in April. c) DISCUSS THE 2026 BOARD MEETING CALENDAR (JENNY DIAZ) District Secretary, Jenny Diaz, indicated that as of today, there were no changes to the calendar. Director Lopez indicated that he would not be present at the April Board meeting. REPORTS 9. GENERAL MANAGER’S REPORT General Manager Martinez provided several updates including: - GFOA Award for its FY 2026 budget (22nd consecutive year). - California Society Municipal Finance Officers Award for both the Operating and Capital Improvement budget, which have been awarded consecutively for the last 20 and 21 years. - ACWA JPIA President’s Special Recognition Award for low property claim costs (July 2021-July 2024). - The State Water Resources Control Board completed its sanitary survey of the District’s system on February 9, 2026. A final report will be provided once the findings are received. 10. SAN DIEGO COUNTY WATER AUTHORITY UPDATES Vice President Robak provided updates on CWA matters including its water surplus and efforts to sell it. An MOU with the U.S. Bureau of Reclamation will facilitate interstate transfers. Vice President Robak also noted the high cost of potential new water projects and the need to protect ratepayers. Vice President Robak noted that the Directors were provided with a copy of the summary. 6 11. METRO WASTEWATER JOINT POWERS AUTHORITY UPDATES Vice President Robak thanked the board for unanimously approving the JPA agreement and noted his successful advocacy at the City of El Cajon. The County of San Diego is the main agency yet to approve it. 12. PRESIDENT’S REPORT/REQUESTS Vice President Robak’s updates included a tour of the East County AWP project, which will supply direct potable reuse water to the District, and the start of construction on the Rosarito desal plant in Mexico. Vice President Robak formally announced that at the next Board meeting, the Board will hold a public hearing to consider an increase to the Board’s Per Diem. A report from Vice President Robak will be submitted to the District Secretary and will be attached to the minutes for today’s meeting. 13. DIRECTORS’ REPORTS/REQUESTS Director Croucher thanked the Board and staff for their support during this difficult personal time. Director Lopez and Gonzalez echoed support for Director Croucher and praised staff for their community engagement and presence at the East County Chamber of Commerce awards event on February 28, 2026. Vice President Robak acknowledged and appreciated the genuine engagement from staff at the awards event, noting it builds better relationships with the community. Written reports from the Directors will be submitted to the District Secretary, which will be attached to the minutes for today’s meeting. OTAY WATER DISTRICT FINANCING AUTHORITY 13. NO MATTERS TO DISCUSS There were no items scheduled for discussion for the Otay Water District Financing Authority board. 14. ADJOURNMENT With no further business to come before the Board, Vice President Robak adjourned the meeting at 4:46 p.m. 7 President ATTEST: District Secretary OTAY WATER DISTRICT BOARD OF DIRECTORS PER DIEM AND MILEAGE CLAIM FORM Pay To: Francisco X. Rivera Period Covered: Employee Number: From: 02/01/26 To: 02/28/26 ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED 1 02/02/26 OWD Ad Hoc Salt Creek Meeting Discuss Salt Creek parcel with Legal Counsel and OWD GM & key staff (Teams). 2 02/04/26 OWD February Board Meeting. Discussed 980-2 & 850-2 pump replacements, consulting services, SDCWA appointment, SARA. 3 02/12/26 OWD EO&WR Committee Meeting (Teams). Reviewed draft agendas for EO&WR Committee and the Finance/Administration Committees. 4 02/17/26 February OWD EO&WR Committee meeting. Discussed OPS building vehicle charging station contract, 2nd Quarter CIP and Strategic Plan. 5 02/19/26 CSDA Meeting Dinner at Butcher Shop, Kearny Mesa. Presentation on cybersecurity issues. 6 02/24/26 Meeting w/GM Martinez & VP Robak to discuss SDCWA agenda. Discussed SDCWA February Board agenda items Administration, MOU, contracts (Teams). 7 02/25/26 East/South SDCWA Caucus Meeting at Denny’s Navajo Road, El Cajon. Water agency representatives from east & south county met w/SDCWA GM to discuss mtg agenda. Mark Robak From:1/1/2026 1/31/2026 ITEM DATE MEETING PURPOSE / ISSUES 1 1/7/2026 Otay Water District Monthly Board Meeting 2 1/8/2026 South County EDC 2026 Kick-Off celebration - NO CHARGE 3 1/9/2026 East County Chamber of Commerce First Friday Breakfast - NO CHARGE 4 1/20/2026 East County Chamber of Commerce Government Affairs Committee - NO CHARGE 5 1/20/2026 Otay Water District Engineering, Operations, and Water Resources (EO&WR) Committee 6 1/20/2026 East County Chamber of Commerce Discuss upcoming SDCWA Board Meeting with Otay GM - NO CHARGE 7 1/20/2026 East County Chamber of Commerce Mixer at Heritage of the America's Museum at Cuyamaca College - NO CHARGE 8 1/21/2026 East County Caucus Discuss upcoming SDCWA Board Meeting with neighboring agencies - NO CHARGE 9 1/21/2026 East County EDC Monthly Board Meeting 10 1/23/2026 East County Chamber of Commerce Executive Committee meeting 11 1/28/2026 Council of Water Utilities Lunch meeting discussion of Colorado River 12 1/29/2026 East County Chamber of Commerce Monthly Board of Directors Meeting 13 1/30/2026 Albondigas South County Hear from San Diego County Assessor/ Recorder/ Clerk Jordan Marks - NO CHARGE Pay To:Period Covered Employee Number OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Mark Robak From:2/1/2026 2/28/2026 ITEM DATE MEETING PURPOSE / ISSUES 1 2/2/2026 Otay Water District Salt Creek Ad-Hoc Committee 2 2/3/2026 San Diego Regional Chamber of Commerce Leadership delegation to Sacramento 3 2/4/2026 San Diego Regional Chamber of Commerce Leadership delegation to Sacramento 4 2/6/2026 Chula Vista Chamber of Commerce First Friday Breakfast - NO CHARGE 5 2/11/2026 Veterans East County Alliance (VECA) Lunch meeting at Water Conservation Garden - NO CHARGE 6 2/12/2026 Otay Water District Quarterly meeting with General Manager 7 2/18/2026 East County EDC Monthly Board Meeting 8 2/19/2026 Santee Chamber of Commerce Business & Government Community Connect with Senator Brian Jones - NO CHARGE 9 2/20/2026 East County Chamber of Commerce Chamber Coffee Connect at Rancho San Diego YMCA - NO CHARGE 10 2/24/2026 Otay Water District Discuss upcoming SDCWA Board Meeting with Otay GM 11 2/25/2026 East County Caucus Discuss upcoming SDCWA Board Meeting with neighboring agencies 12 2/26/2026 East County Chamber of Commerce Monthly Board Meeting 13 2/27/2026 Albondigas South County Hear from Chula Vista City Attoney Marco Verdugo - NO CHARGE 14 2/28/2026 East County Chamber of Commerce East County Honors Event - Otay was nominee for Sustainability Award OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To:Period Covered Employee Number OTA Y WATER DISTRICT BOARD OF DIRECTORS PER DIEM AND MILEAGE CLAIM FORM Pay To: Delfina Gonzalez Emplovee Number: Period Covered: ITEM DATE MEETING PURPOSE I ISSUES DISCUSSED OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To: Gary Croucher Period Covered: Employee Number: From: 2/1/2026 To: 2/28/2026 ITEM DATE MEETING PURPOSE/ISSUES DISCUSSED 1 2/4/26 Otay Water District Regular Board Meeting 2 3 4 5 OTA Y WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To: Jose Lopez Period Covered: 2/1/2026-2/28/2026 Employee Number: ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED 1 2 3 4 5 6 7 8 9 IO 2/3/26 South County Economic Development Council 2/4/26 Otay Water District 2/6/26 Chula Vista Chamber of Commerce 2/12/26 FLOW 2/18/26 Otay Water District 2/19/26 California Special Districts Association 2/20/26 Otay Water District 2/24/26 Water Conservation Garden JPA 2/28/26 East County Chamber of Commerce Monthly Meeting Regular Board Meeting First Friday Breakfast (No Charge) Monthly Meeting Finance & Administration Committee Meeting Quarterly Meeting Quarterly Meeting with GM Monthly Meeting East County Chamber of Commerce Awards Ceremony SUMMARY OF FORMAL BOARD OF DIRECTORS’ MEETING FEBRUARY 26, 2026 1. Monthly Treasurer’s Report on Investments and Cash Flow. The Board noted and filed the monthly Treasurer’s Report 2. Resolution adopting the benefit summaries between the Water Authority and unrepresented Confidential, Senior Management and Executive employees covering calendar years 2022 through 2026 for California Public Employees Retirement System (CalPERS) compliance. The Board adopted Resolution No. 2026-02, a resolution of the Board of Directors of the San Diego County Water Authority, adopting the amended benefit summaries covering calendar years 2022, 2023, 2024, 2025 and 2026 with unrepresented employees (Confidential, Senior Management and Executive groups). 3. Project Labor Agreement determination for the Lake Hodges Hydroelectric Facility Isolation project. In accordance with Administrative Code section 4.08.070 (Project Labor Agreements), the Board determined that the Lake Hodges Hydroelectric Facility Isolation project does not include a requirement for a project labor agreement. 4. Approve memorandum of understanding with U.S. Bureau of Reclamation on behalf of the United States Department of Interior for the purpose of exploring a Colorado River Imported Water/Interstate Water Transfer Pilot. The Board approved the MOU with the U.S. Bureau of Reclamation, Metropolitan Water District of Southern California, Southern Nevada Water Authority, Arizona Department of Water Resources, and Central Arizona Water Conservation District to explore potential of interstate transfers and exchanges. 5. Approval of Minutes The Board approved the minutes of the Special Board of Directors’ and Formal Board of Directors’ meetings of January 22, 2026. 1 STAFF REPORT TYPE MEETING: Regular Board Meeting MEETING DATE: April 1, 2026 SUBMITTED BY: Tenille M. Otero PROJECT: Various DIV. NO. All APPROVED BY: Jose Martinez, General Manager SUBJECT: Legislative Program Policy Guidelines and Top 10 2026 Legislative and Regulatory Priorities GENERAL MANAGER’S RECOMMENDATION: That the Board of Directors adopt the Otay Water District Legislative Program Policy Guidelines and the Anticipated 2026 Top 10 Legislative and Regulatory Priorities. COMMITTEE ACTION: See Attachment A. PURPOSE: To provide direction to District staff and its legislative advocates in the formulation of the District’s response to legislative initiatives on prominent issues that could impact the District and/or other local water agencies. To present to the Board of Directors the anticipated 2026 Legislative Program Priorities, which staff and legislative advocates will proactively monitor and/or act on during the 2026 legislative session and throughout the year. ANALYSIS: The Otay Water District maintains legislative policy guidelines to direct staff and its legislative advocates on issues important to the District. Staff updates the legislative guidelines annually and/or as needed, with the proposed updates presented to the District’s Board of Directors for review, comment, and adoption. The Legislative Program provides policy guidelines on legislation for the Board’s consideration. Staff and legislative advocates consult the guidelines to determine recommended positions on legislation and amendments. Typically, representatives of the California Legislature introduce 2,000 or more bills or significant resolutions. While many bills fail to make it out of their house of origin, many others move on to be AGENDA ITEM 6a 2 signed by the governor and become law. These new laws can fundamentally affect special districts. The same is true with each session of the House of Representatives and the U.S. Senate. The 2026 Legislative Program establishes guidelines and policy direction that staff and the District’s legislative advocates can use when monitoring legislative activity to facilitate actions quickly in response to proposed bills or issues. The guidelines provide a useful framework for staff and legislative advocates when evaluating the potential impact of state or federal legislation on the District. This is particularly helpful when a timely response is necessary to address last-minute amendments to legislation, District participation in coalitions on issues, and when calls or letters of support or opposition are needed. Legislation that does not meet the guidelines set forth or that has potentially complicated or varied implications will not be acted upon by staff or the District’s legislative advocates and will instead be presented to the Board directly for guidance in advance of any position being taken. The San Diego County Water Authority has its own set of legislative policy guidelines that have served as a comprehensive program at the wholesale and regional levels. Historically, the Water Authority’s Legislative Policy Guidelines have been extremely detailed and all-inclusive. In 2026, the Water Authority shortened and streamlined its guidelines. District staff is evaluating the Water Authority’s and other agencies' legislative policies and guidelines to determine which will be most effective for the District. Until then, District staff recommend maintaining the guidelines in the same format as in 2025. Although the District is a retail agency and is focused on its local service area, if there are issues or policies incorporated in the Water Authority’s legislative policy guidelines that could benefit or impact the District, the general manager, District staff, and the District’s legislative advocates may act on those issues, respectively. The Legislative Program Policy Guidelines present staff’s recommendations for the Board’s review. Staff will then incorporate the Board’s recommendations in the final document. The guidelines aim to protect the District’s interest in a reliable, diverse, safe, and affordable water supply. Moreover, they seek to maintain local control over special district actions to protect the Board’s discretion and ratepayers’ interests, and maintain the ability to manage District operations effectively and efficiently. In addition, they express the District’s ongoing support for financial assistance to water agencies and customers regarding nonpayment due to financial hardships, water-use efficiency, recycled water, 3 seawater desalination, capital improvement project development, organization-wide safety and security, binational cooperation, climate change, and funding. These guidelines also demonstrate the District’s strong, collaborative support and efforts to advocate against a “one-size-fits-all” approach and any unfunded mandates imposed by legislation or regulation. The proposed redlined Legislative Program Policy Guidelines are included in Attachment B. A clean copy of the proposed changes is included in Attachment C. When the Board adopts the updated guidelines, staff will incorporate the Board’s recommended changes into the final document. In addition, staff is presenting the District’s anticipated Top 10 Legislative and Regulatory Priorities for the year (Attachment D). This list highlights, in no specific order, legislation or issues that District staff and/or the Water Authority are currently monitoring and/or may take or have already taken a position on. The deadline for bill introduction was February 20, 2026. Lobbyists and legislative staff typically wait until the last couple of days before the deadline, when hundreds of bills are introduced. Based on the bills/issues that legislators introduced by this year’s deadline, staff worked with the District’s legislative consultant to develop a list of priority issues for 2026. The anticipated top 10 priorities include: 1. Water Affordability 2. State Budget Funding 3. Wildfire Prevention, Emergency Management, and Liability 4. Governance 5. Local Control 6. Drinking Water & State Mandates 7. Advanced Clean Fleets 8. Water Supply & Management 9. Water Conservation and Water-Use Efficiency 10. Water Rights Staff and the District’s consultant will continue to monitor bills and issues that may affect the District. Staff will update the Board as necessary throughout the year on legislative issues impacting the District. District staff continue to proactively work with the Water Authority’s government relations staff, the District’s legislative consultant, the Association of California Water Agencies, California Special Districts Association, California Water Efficiency Partnership, California Municipal Utilities Association, and other related coalitions, associations, and organizations to monitor legislative issues that affect the District and its ratepayers. It is 4 critical that the District and its staff remain engaged in these issues as they could impact how the District conducts day-to-day operations, and operates and maintains its facilities, thereby affecting its ratepayers. FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. STRATEGIC GOAL: Enhance customer and community engagement to increase public awareness of the water industry and the District while continuing to provide superior customer service. LEGAL IMPACT: None. Attachments: A) Committee ActionB) Proposed Otay Water District Legislative Program Policy Guidelines (Redlined)C) Proposed Otay Water District Legislative Program Policy Guidelines (Clean Copy)D) Anticipated Top 10 Legislative and Regulatory Priorities for2026 E) Presentation “Anticipated Top 10 Legislative for 2026” –Brownstein, Hyatt, Farber, and Schreck 5 ATTACHMENT A SUBJECT/PROJECT: Legislative Program Policy Guidelines and Top 10 2026 Legislative and Regulatory Priorities COMMITTEE ACTION: The Conservation, Public Relations, Legal, and Legislative Committee reviewed these items at its March 18, 2026 meeting, and the following comments were made: • Staff indicated that there is ongoing coordination with CWA, ACWA, CSDA, CMUA, and others as these issues can directly impact district operations, infrastructure and ultimately, ratepayers. • Staff introduced Mr. Baltazar Cornejo, Senior Policy Advisor at Brownstein Hyatt Farber Schreck (BHFS), who provided a PowerPoint presentation on the top 10 anticipated legislative and regulatory priorities. Mr. Cornejo stated that 1,800 bills were introduced as of the February 20, 2026, deadline. • Mr. Cornejo indicated that affordability and Prop 218 compliance remain central themes. Staff further noted that AB 2180, sponsored by ACWA, advances rate proportionality consistent with Dreyer v. LADWP. The Supreme Court’s review of AB 2180 appears narrowly focused on tiered rates based on source of supply and therefore is expected to have limited direct impact on current rate structures. • In response to a Committee inquiry regarding whether the federal government supersedes CARB, it was indicated that this is a matter of preemption and depends on how the legislation is drafted. Staff further added that states may adopt more restrictive requirements. • The Committee further discussed potential conflicts between federal and state regulation related to electrification and emissions mandates and affirmed a phased electrification approach pending legal clarification. •Responding to the Committee’s inquiry, staff indicated thatCWA does not have top 10 priorities but they are evaluatingtheir shortened model and other agencies' legislativepolicies and guidelines to determine which will be most effective for the District. Until then, staff recommendmaintaining the guidelines in the same format as in 2025.Staff emphasized maintaining a comprehensive guidelineformat to protect local control, enable timely advocacy,and coordinate with regional/state partners. •The Committee inquired about budgeting and Mr. Cornejoindicated that there are not necessarily cuts, but rathera need to evaluate the Governor’s proposed spending levels.Mr. Cornejo further noted that, in certain categories, stakeholders are advocating for increased investment, suchas in water conveyance and dam repairs. Mr. Cornejo alsooffered to gather proposals to better understand whatcounterpart agencies are requesting. Upon completion of the discussion, the Committee supported staff’s recommendations and presentation to the full board as an action item. Otay Water District Legislative Program 2025 1 | P a g e Effective Date: 04/0201/20256 Legislative Program Policy Guidelines Purpose The Otay Water District’s 2025 legislative policy guidelines provide direction to staff and the District’s legislative advocates when they evaluate proposed legislation that may affect the District, other local water agencies, or regional water management and use. Legislation that meets or fails to meet the principles set forth in the guidelines may be supported or opposed accordingly. The guidelines permit the General Manager, District staff, and the District’s legislative advocates to act in a timely fashion between Board meetings on issues that are manner between Board meetings on issues clearly within the guidelines. While the title of this document suggests these policy guidelines are applicable solely to state and federal legislative issues reviewed by the District and its wholesale supplier the San Diego County Water Authority (Water Authority), increasingly state and federal regulatory and administrative bodies are developing rules, guidelines, white papers, and regulations that can significantly affect the District, its wholesale supplier, and other local water agencies. District staff, including the District’s legislative consultantconsultants, often utilize these Legislative Policy Guidelines to provide guidance on emerging and active regulatory and administrative issues. Legislation that does not meet the principles set forth in the guidelines or that has potentially complicated or varied implications will not be acted upon by staff or the legislative advocates in between Board meetings and will instead be presented to the Board directly for guidance in advance of any position being taken. The Water Authority has its own set of legislative policy guidelines that is a comprehensive program at a wholesale and regional level. District staff has continues to evaluated and selected policies and issues from the Water Authority’s policy guidelines that may have a direct impact on the District, and . These policies and issues have been has incorporated into the District’s guidelines. Although the District is a retail agency and is focused on its local service area, ifarea, there may be are issues or policies contained in the Water Authority’s Legislative Policy Guidelines that could benefit or impact the District, the General Manager, District staff, and the District’s legislative advocates may act on those issues, respectively. Attachment B Otay Water District Legislative Program 2025 2 | P a g e Table of Contents The Otay Water Legislative Policy Program Guidelines for 2025 includes the following categories: I.Binational Issues…………………………………………....……………... Page 3 II.Biological and Habitat Preservation…………………………………….. Page 3 III.Desalination……………………………………………………………….. Page 4 IV.Drought and Extreme Weather Response………………………………. Page 4 V.Energy……………………………………………………………………… Page 5 VI.Financial Issues…………………………………………………………… Page 7 A.Fees, Taxes, and Charges………………………….......................... Page 7 B.Funding…………………………………………………………….. Page 8 C.Rates………………………………………………………………... Page 11 D.Water Bonds……………………………………………………….. Page 11 E.Affordability……………………………………………………. Page 12 VII.Governance and Local Autonomy……………………………………….. Page 13 VIII.Imported Water Issues……………………………………………………. Page 15 A.Bay-Delta……………………………………………………………… Page 15 i.Co-equal Goals……………………………………………………. Page 15 ii.Bay-Delta Conveyance Project…………………………………… Page 16 B.Metropolitan Water District…………………………………………… Page 16 C.Colorado River………………………………………………………… Page 17 D.State Water Project…………………………………………………….. Page 18 IX.Optimize District Effectiveness……………………...…………....………. Page 18 X.Safety, Security, and Information Technology……………....................... Page 19 XI.Water Quality Issues………………………………………………………. Page 20 XII.Water Recycling and Potable Reuse……………………………………… Page 21 XIII.Water Rights Modernization……………………………………………… Page 22 XIV.Water Service and Facilities……………………………………………….. Page 23 XV.Water Use and Efficiency………………………………………………….. Page 27 Otay Water District Legislative Program 2025 3 | P a g e XVI. Workforce Development………………………………………………….. Page 29 I. Binational Issues Support initiatives that: 1. Foster binational cooperation to address drought and climate change on the Colorado River in a way that protects the San Diego/Baja California region’s interests and river supplies. 2. Promote and provide funding for cross-border water supply and infrastructure development projects to serve the San Diego/Baja California border region while protecting local interests. 3. Encourage enhanced cooperation between entities in San Diego and Baja California in the development of supply and infrastructure projects that will benefit the entire border region. 4. Encourage state and federal funding to support collaborative binational projects to improve water quality and protect human health and the environment within the broader San Diego region. 5. Develop and enhance communications and understanding of the interdependence of communities on both sides of the border with the goal of improved cross-border cooperation. Oppose initiatives that: 1. Would usurp local control over the financing and construction of water supply and infrastructure projects in the San Diego/Baja California region. II. Biological and Habitat Preservation Support initiatives that: 1. Support development of comprehensive multispecies habitat conservation plants that anticipate and mitigate project development impacts while preserving representative ecosystems, rather than individual species. 2. Exempt operation, maintenance, and repair of water system facilities from endangered species and other habitat conservation regulations because they provide beneficial cyclical habitat values to declining species and foster biological diversity in California. 3. Provide environmental regulatory certainty for the implementation of existing and proposed long-term water supply programs. 4. Streamline filing of CEQA notices of determination for multicounty water projects by making those notices available on the CEQAnet website through the Governor’s office of Planning and Research. 5. Incorporate an emergency exemption for “take” of a listed species listed under the state or federal Endangered Species Acts when necessary to mitigate or prevent loss of or damage to life, health, property, or essential public services. 6. Encourage species listings, critical habitat designation, and recovery plans developed pursuant to the state or federal Endangered Species Acts to be consistent with existing interstate compacts, tribal treaties, and other state and federal agreements. 7. Support the eradication of invasive species or the prevention of them from becoming established in watersheds providing water supplies. Oppose initiatives that: Otay Water District Legislative Program 2025 4 | P a g e 1.Reduce or limit the use of existing water rights or supplies, 2.Restrict the development of future water supplies. 3.Interfere with operating, maintaining, or repairing existing water conveyance and storage facilities. 4.Impose endangered species or habitat conservation requirements that restrict the operation, maintenance, or repair of public water supply, conveyance, treatment, or storage facilities. 5.Provide for after-the-fact reduction in quantity or quality of a public water supply due to new restrictions on the operation or use of water supply facilities unless funding for alternate sources of water is provided. 6.Impose a “utility user fee,” or “surcharge,” on water for the purposes of financing open space/habitat preservation, restoration, or creation. III.Desalination Support initiatives that: 1.Provide funding for seawater desalination studies and facilities. 2.Recognize and support the development of seawater desalination as a critical new water supply for the state, including San Diego County. 3.Streamline permitting of desalination facilities. 4.Preserve and protect potential seawater desalination sites and existing coastal facilities, including intake and discharge infrastructure that could be used or reused by a seawater desalination facility. 5.Ensure that desalination intake and discharge regulations are science-based, considering site- specific conditions and recognizing that not all technologies or mitigation strategies are feasible or cost-effective at every site. 6.Incorporate seawater desalination as part of a slate of long-term infrastructure projects to support the Colorado River. IV.Drought and Extreme Weather Response Support initiatives that: 1.Ensure the District and other local agencies, including the Water Authority and San Diego County water agencies, including ratepayers, receive the water supply benefits of investments in water supply. 2.Allow local agencies to achieve compliance with emergency or nonemergency drought regulations or objectives through a combination of water conservation measures and development and implementation of water supply sources that are not derived from the Bay- Delta, and credit these investments to the agencies and ratepayers making them. 3.Allow local agencies to account for all water supplies available during droughts and other events when calculating the water supply shortage level. Otay Water District Legislative Program 2025 5 | P a g e 4.Create a process for the development and implementation of emergency drought declarations and regulations that recognizes variations among communities, regions, and counties with respect to their abilities to withstand the impacts and effects of drought. 5.Recognize variations among communities, regions, and counties with respect to their abilities to withstand the impacts and effects of droughts and ensure that any temporary or permanent statutory or regulatory direction for improving water-use efficiency to meet statutory or regulatory goals or standards is focused on regional achievement of objectives rather than a one-size-fits-all approach. 6.Unlock federal and state funding to supplement state and local recovery efforts in areas affected by extreme weather. 7.Support and encourage the transfer and storage of water during both emergency and non- emergency conditions to reduce the impact of drought. Oppose initiatives that: 1.Disincentivize or impede water agencies from making investments to maximize the potential for recycled water, potable reuse, desalination, and other drought-resilient water supplies. 2.Create a “one-size-fits-all” approach to emergency drought declarations and regulations that ignores variations among communities, regions, and counties and the investments their ratepayers made to improve their ability to withstand the impacts and effects of drought and climate change. 3.Hinder federal and state funding to supplement state and local recovery efforts in areas affected by extreme weather. V.Energy Support initiatives that: 1.Provide opportunities for reduced energy rates for the District and other local water agencies. 2.Provide protection to the District and other local water agencies from energy rate increases and rate relief for the District and water agencies. 3.Provide funding, including state and federal grants, for in-line hydro-electric, solar, wind, battery storage, biogas, cogeneration, nanogrids, microgrids, closed-loop pumped storage facilities, and other renewable energy generation or storage technology as means of reducing greenhouse gas emissions and energy cost. 4.Promote funding for the use of renewable energy in the operation of District facilities. 5.Prohibit investor-owned utilities from implementing rate changes that undercut the financial viability of renewable energy facilities obligated under long-term Power Purchase Agreements. 6.Provide greater flexibility in the utilization of the District’s facilities for electrical generation and distribution, and acquisition of electricity and natural gas. 7.Provide the District with greater flexibility in the licensing, permitting, interconnection, construction, and operation of its existing and potential in-line hydroelectric, solar, wind, Otay Water District Legislative Program 2025 6 | P a g e battery, nanogrid, microgrid, closed-loop pumped-energy storage projects, and other renewable generation or storage technology. 8.Make SWP power available for all water projects that reflect proportional payments made by member agencies. 9.Promote the classification of electricity generated by in-line hydroelectric and closed-loop pumped-energy storage facilities as environmentally sound. 10.Promote the expansion of closed-loop pumped-energy storage facilities to provide clean and environmentally sound energy resources that provides electric and provide electric reliability and resiliency, especially during times of potential blackouts. 11.Promote the expansion of in-line hydroelectric energy recovery systems at treatment facility discharge systems. 12.Promote the production, purchase, delivery, and use of alternative sources of energy on a wholesale basis. 13.Provide clear statutory, regulatory, or administrative authority for the Water Authority to wheel acquired or produced power to itself, the District, or entities with which the Water Authority is under contract for the purchase, treatment, transport, or production of water. 14.Recognize and monetize all grid ancillary services that pumped hydro-energy storage provides and support fair compensation in the wholesale energy market for such services. 15.Provide timely, efficient, and cost-effective interconnection of energy loads and resources such as solar, inline in-line hydroelectric, pumped-energy storage, and other renewable energy generation or storage technologies to the electric distribution and transmission grid. 16.Recognize the value of large-scale hydropower and pumped-energy storage facilities in assisting the state to meet its renewable and zero-carbon emission goals of 100% by 2045. Oppose initiatives that: 1.Adversely affect the cost or reliability of energy needed to operate MWD’s facilities, SWP facilities, or the facilities of the Water Authority and the District. 2.Impose greenhouse gas reduction obligations on a public water agency for electricity purchased or produced for the sole purpose of operating its system. 3.Adversely affect the ability of the District or other water agencies in the county to own, operate, and/or construct work for supplying its own facilities with natural gas and electricity. 4.Impede the District or other water agencies in the county, the ability to contract for, deliver, and use natural gas or electricity purchased from the United States, the State of California, and any other public agency or private entity, and provide, sell, exchange, or deliver the gas or electricity to itself, any public agency or private entity. 5.Reduce the District’s ability to always maintain high operational efficiency. 6.Restrict the District’s ability to expand or improve infrastructure or facilities. 7.Restrict or cap future energy demands needed for possible expansion of recycled water, potable reuse, and/or desalination projects. Otay Water District Legislative Program 2025 7 | P a g e 8.Adversely affect the District’s ability to expand cogeneration or polygeneration at planned or existing facilities. 9.Inhibit the scientific advancement of energy and water- efficient/conserving technologies that may be implemented at the District or other agency facilities. 10.Prevent the District from enhancing energy reliability and independence for its facilities. 11.Do not count or credit qualified renewable energy projects toward the accomplishment and satisfaction of the California Renewables Portfolio Standard objectives. 12.Prohibit the Water Authority from wheeling - or securing statutory, regulatory, or administrative authority necessary to wheel - acquired or produced power to itself, the District, or other entities with which the Water Authority is under contract of for the purchase, treatment, transport, or production of water. 13.Result in a lengthy, more complicated, or more costly interconnection of energy loads and resources, such as solar, in-line-hydroelectric, pumped-energy storage, and other renewable energy generation or storage technologies to the electric distribution and transmission grid. VI.Financial Issues A.Fees, Taxes, and Charges Support initiatives that: 1.Require the federal government and the State of California to reimburse special districts for all mandated costs or regulatory actions. 2.Give special districts the discretion to cease performance of unfunded mandates. 3.Provide fiscal reform to enhance the equity, reliability, and certainty of special district funding. 4.Provide incentives for local agencies to work cooperatively, share costs, or resources. 5.Provide for the stable, equitable, and reliable allocation of property taxes. 6.Continue to reform workers’ compensation. 7.Promote competition in insurance underwriting for public agencies. 8.Produce tangible results, such as water supply reliability or quality improvement. 9.Require the Metropolitan Water District of Southern California (MWD) to refund or credit to its member agencies revenues collected from them that result in reserve balancesreserves greater than the maximum reserve levels established pursuant to state legislation. Oppose initiatives that: 1.Impose mandated costs or regulatory constraints on local agencies and their customers without providing subventions to reimburse local agencies for such costs. 2.Pre-empt the District or local water agencies’ ability to impose or change rates, charges, fees, or assessments. 3.Weaken the protections afforded by the District, the Water Authority, or other local water agencies and its their ratepayers under California’s Proposition 1A (November 2, 2004) or Proposition 26 (November 2010). 4.Reallocate special districts’ reserves to balance the state budget. Otay Water District Legislative Program 2025 8 | P a g e 5.Reallocate special district revenues or reserves to fund infrastructure improvements or other activities in cities or counties. 6.Establish funding mechanisms that put undue burdens on local agencies or make local agencies de facto tax collectors for the state. 7.Adversely affect the cost of gas and electricity or reduce an organization’s flexibility to take advantage of low peak cost periods. 8.Add new reporting criteria, burdensome, unnecessary, or costly reporting mandates to Urban Water Management Plans. 9.Add new mandates to the Department of Water Resources (DWR) to review and approve Urban Water Management Plans beyond those already addressed in DWR guidelines. 10.Mandate that water agencies include an embedded energy calculation for their water supply sources in Urban Water Management Plans or any other water resources planning or master-planning document. 11.Weaken existing project retention and withholding provisions that limit the ability of public agencies to drive contractor performance. 12.Establish change order requirements that place an unreasonable burden on local agencies, or raise financial risk associated with public works contracts. 13.Impair the Water Authority or its member agencies’ ability to provide reasonable service at reasonable costs to member agencies or to charge all member agencies the same rate for each class of service consistent with cost-of-service requirements of the law. 14.Impair the local water agencies’ ability to maintain reasonable reserve funds and obtain and retain reasonable rates of return on its their reserve accounts. 15.Mandate a specific rate structure for retail water agencies. 16.Impose a water user fee on water agencies or water users that does not provide a commensurate and directly linked benefit in the local area or region from which the water user fee is collected. 17.Impose a water user fee for statewide projects or programs, for which the projects or programs are not clearly defined, the beneficiaries identified, and reasonable costs identified. 18.Impose a water user fee to create a state fund that can be used to finance undefined future projects and programs. 19.Allow the state to retain more than 5% of water user fees for administrative costs. 20.Do not restrict the use of water user fees to only the specific purposes for which they are imposed, without any possibility of diversion to meet other fiscal needs of the state or water users outside of the Water Authority’s service area. 21.Impose a “public goods charge” or “water tax” on public water agencies or their ratepayers. 22.Impose a fee on water users to repay the principal and interest on a statewide general obligation bond. 23.Establish regulatory or permit fees that lack a nexus to the costs of oversight. 24.Establish a broad-based user fee that does not support a specific program activity; any fee must provide a clear nexus to the benefit the fee would provide. B.Funding Support initiatives that: Otay Water District Legislative Program 2025 9 | P a g e 1.Require the federal and state governments to provide subvention to reimburse local governments for all mandated costs or regulatory actions. 2.Provide the District, the Water Authority, and other local water agencies with additional forms of cost-effective financing for public facilities. 3.Revitalize the Title XVI federal funding program by converting new authorizations to a competitive grant program with congressional oversight while protecting existing Title XVI authorizations for the San Diego region. 4.Provide the District, Water Authority, and local water agencies with grant funding for public facilities, including developing local water resources and rehabilitation and repair of aging infrastructure, such as dams and pipelines. 5.Provide the District, other local water agencies, and water ratepayers with post-COVID-19 financial relief through a variety of means, including but not limited to, direct financial assistance and flexibility in debt management to assist water ratepayers and water suppliers. 6.Authorize financing of water quality, water security, and water supply infrastructure improvement programs. 7.Establish spending caps on the State of California overhead when administering voter - approved grant and disbursement programs. 8.Require disbursement decisions in a manner appropriate to the service in question. 9.Encourage funding infrastructure programs that are currently in place and that have been proven effective. 10.Provide financial incentives for energy projects that increase reliability, diversity, and reduce greenhouse gases. 11.Continue energy rate incentives for the utilization of electricity during low-peak periods. 12.Provide loan or grant programs that encourage water conservation for water users who are least able to pay for capital projects. 13.Provide for population-based distribution of IRWM funds to ensure adequate distribution of grant funding to the San Diego region. 14.Provide for the use of state grant funds for binational projects where the projects benefit water supply or water quality in the San Diego region. 15.Improve and streamline the state’s reimbursement process of IRWM funds. 16.Promote the ability of the Regional Water Management Group to administer state grant funds specifically identified more directly for IRWM Programs. 17.Require the state to rely on the local process for selection and ranking of projects included in an approved IRWM plan. 18.Increase collaboration between stakeholders within the IRWM regions when funding and selecting projects. 19.Provide additional resources and assistance to address unique administrative and implementation challenges associated with underrepresented communities. 20.Advocate for state bonds that provide grant funding for the San Diego County IRWM Program. 21.Provide funding or other incentives for conservation, peak management programs, water recycling, potable reuse, groundwater recovery and recharge, dam repair and rehabilitation, surface water development and management projects, including reservoir Otay Water District Legislative Program 2025 10 | P a g e management, source water protection, and watershed planning studies and facilities that sustain long-term, reliable water resources. 22.Provide financial incentives to assist in the disposal of concentrate, sludge, and other byproducts created in the water treatment process. 23.Authorize, promote, and provide incentives or credits for development of local drought- resilient water supply projects such as desalination, non-potable recycling, and potable reuse projects. 24.Provide funding for potable reuse demonstration projects and studies. 25.Provide funding for infrastructure improvements at desalination facilities with eligibility for public and private partnerships. 26.Authorize federal and state funding to develop and implement regional or subregional conservation programs, including but not limited to property acquisition, revegetation programs, and watershed plans. 27.Provide state and/or federal funding for the restoration of the Salton Sea. 28.Provide federal and/or state funding to implement actions that address the ecological and water supply management issues of the Lower Colorado River from Lee's Ferry to the southerly international border with Mexico. 29.Provide federal and/or state funding to implement actions that address the ecological and water supply management issues of the Sacramento-San Joaquin River Delta. 30.Permit the use of grant funding for projects implemented under public-private partnerships where the grant provides funding for a public benefit. 31.Require the state agencies responsible for preparing the IRWM grant program guidelines to conduct a comprehensive public outreach process that ensures stakeholders have an opportunity to provide adequate input on the preparation of the guidelines and require that state agencies consider and respond to comments received through the outreach process. 32.Provide incentive, funding, and assistance to water agencies so that they can comply with AB 32 (2006) requirements, and updated statutory requirements imposed pursuant to SB 32 (2016), SB 100 (2018), and SB 1020 (2022). 33.Remove funding caps from state and federal grant and loan funding sources. 34.Streamline federal and state grant reimbursement processes. Oppose initiatives that: 1.Impose additional administrative requirements and/or restrict the District’s, Water Authority’s, or other local water agencies’ ability to finance public facilities through the issuance of long-term debt. 2.Interfere with the responsibility of a region, operating under an Integrated Regional Water Management Plan, for setting priorities and generating projects to be paid from any IRWM accounts and grants. 3.Interfere with the control exercised by the San Diego funding subregion over the use and expenditure of any water-user fee revenues that may be dedicated to the region. 4.Establish IRWM funding criteria that limit local discretion in project selection. 5.Provide for after-the-fact reduction in quantity or quality of a public water supply due to new restrictions on the operation or use of water supply facilities unless funding for alternate sources of water is provided. Otay Water District Legislative Program 2025 11 | P a g e 6.Impose a "utility user fee" or "surcharge" on water for the purposes of financing open space/habitat preservation, restoration, or creation. C.Rates Support initiatives that: 1.Maintain the authority and requirements of water agencies to establish water rates , consistent with the cost-of-service requirements of the law. 2.Maximize the ability of water agencies to design rate structures to meet local water supply goals and that conform to the cost-of-service requirements of the law. 3.Encourage and promote education to elected officials, community/business leaders, organizations, and the public about water sales and conservation, and the District and its wholesaler’s rates and what those rates support, including but not limited to infrastructure, asset management, operations, maintenance, water reliability, and more. Oppose initiatives that: 1.Impair the District’s, the Water Authority’s, or local water agencies’ ability to provide reliable service at reasonable costs to member agencies or to charge all member agencies the same or similar rate for each class of service consistent with cost-of-service requirements of the law. 2.Undermine or weaken cost-of-service rate-making requirements in existing law. 3.Impair the District’s ability to maintain reasonable reserve funds and obtain and retain reasonable rates of return on its reserve accounts. 4.Mandate a specific rate structure for retail water agencies. 5.Prescribe mandatory conservation-based rate structures that override the authority of the boards of directors of local water agencies to set rate structures according to the specific needs of the water agencies in accordance with cost-of-service requirements. 6.Usurp special district funds, reserves, or other state actions that force special districts to raise rates, fees, or charges. D.Water Bonds Support initiatives that: 1.Provide an equitable share of funding to San Diego County, with major funding categories being divided by county and funded on a per-capita basis to ensure bond proceeds are distributed throughout the state in proportion to taxpayers’ payments on the bonds. 2.Focus on statewide priorities, including restoration of fish and wildlife habitat, promotion of greater regional and local self-sufficiency, surface storage, and promotion of water-use efficiency. 3.Ensure funding from various propositions for local and regional water-related projects. 4.Include within IRWM funding money that a region may use over time to develop and refine its plan and to develop institutional structures necessary to establish and implement the plan. 5.Give primary consideration to funding priorities established by local and regional entities through their IRWM planning process. Otay Water District Legislative Program 2025 12 | P a g e 6.Ensure the application process for funding is not unnecessarily burdensome and costly, with an emphasis on streamlining the process. 7.Limit state overhead to no more than 5% of bond funding amounts. 8.Place as much emphasis and provide at least as much funding for surface storage as for groundwater storage. 9.Define the “San Diego sub-region” and “San Diego county watersheds” as “those portions of the westward-flowing watershed of the South Coast hydrologic region situated within the boundaries of San Diego County.” 10.Fund emergency and carryover storage projects. 11.Consolidate administration of all voter-approved water-related bond funding in one place, preserves existing expertise within the state bureaucracy to manage bond-funding processes, and provide consistent application and evaluation of bond- funding applications. 12.Provide the state’s share of funding for projects that advance the achievement of the co- equal goals of water supply reliability and Bay-Delta ecosystem restoration. 13.Provide funding for water infrastructure that resolves conflicts in the state’s water system and provides long-term benefits to statewide issues, including water supply, reliability, water quality, and ecosystem restoration. Oppose initiatives that: 1.Do not provide an equitable share of funding to San Diego County based on the San Diego County taxpayers’ proportional contribution to repayment of the bonds. 2.Do not provide funding for infrastructure that resolves statewide or regional conflicts of water supplies. 3.Do not provide funding that results in net increases in real water supply and water supply reliability. 4.Commit a significant portion of bond funding to projects that do not result in net increases in real water supply or water supply reliability. E.Affordability Support initiatives that: 1.Abide by the Human Right to Water (AB 685, 2012) as set forth in Section 106.3 of the California Water Code, which reads that, “every human being has the right to safe, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes.” The State Water Resources Control Board also has a resolution supporting this program. 2.Meet the required standards under Proposition 218 and Proposition 26 in the California Constitution regarding proportionality of water rates and cost-of-service provisions. 3.Rely on data-driven analysis of water affordability, including considerations such as census data and economically disadvantaged communities. As such, the District supports the continued implementation of AB 2334 (2012), which that requires the Department of Water Resources to provide this analysis and place it in California’s Water Plan. 4.Support the creation of a permanent low-income water rate assistance program that targets providing financial assistance to low-income ratepayers using federal resources or existing resources within either the state General Fund, grants, or cap-and-trade dollars. Otay Water District Legislative Program 2025 13 | P a g e 5.Does not burden water districts with excessive or overly prescriptive state mandates, including the collection of water taxes or water rate and boundary data, and qualification of customers for low-income assistance programs. 6.Support the expansion of the low-income assistance programs (LIHWAP) or other programs, using existing resources from the federal government, with the state General Fund, or cap-and-trade dollars, or other state financial resources. 7.Provide the Water Authority, its member agencies, and water ratepayers with a permanent low-income customer assistance program. 8.Encourage and promote education to elected officials, community/business leaders, organizations, and the public about affordability. Oppose initiatives that: 1.Is Does not targeted appropriately: Any low-income water rate assistance program must be limited in scope to those individuals. By seeking to do too much, effectiveness could be limited. Examples of this could include extending program resources to domestic wells or water-use efficiency programs. 2.Does not have a funding source: Any low-income water rate assistance program needs to identify specific sources of sustainable funding and does not include a water tax or water surcharge. 3.Does not reinvent the wheel: Any low-income water rate assistance program should be built upon and use the resources of an existing benefit distribution organization or system, such as CalFresh, rather than requiring water agencies to add the operating expense of creating and administering a new method. VII.Governance and Local Autonomy Support initiatives that: 1.Expand local autonomy in governing special district affairs. 2.Promote comprehensive long-range planning. 3.Assist local agencies in the logical and efficient extension of services and facilities to promote efficiency and avoid duplication of services. 4.Streamline the Municipal Service Review Process or set limits on how long services reviews can take or cost. 5.Reaffirm the existing “all-in” financial structure or protect the Water Authority voting structure based on population. 6.Promote measures that increase broader community and water industry representation/appointments on State decision makingdecision-making bodies. 7.Ensure an open and transparent process for the adoption of regulations, policies, and guidelines. 8.Preserve the District and other local water agencies’ ability to establish local priorities for water resources planning decisions. 9.Promote cost- effective and reasonably feasible requirements. Oppose initiatives that: 1.Assume the state legislature is better able to make local decisions that affect special district governance. Otay Water District Legislative Program 2025 14 | P a g e 2.Create one-size-fits-all approaches to special district reform. 3.Unfairly target one group of local elected officials. 4.Usurp local control from special districts regarding decisions involving local special district finance, operations, or governance. 5.Diminish the power or rights of the District’s governing body to govern the District’s affairs. 6.Diminish the power or rights of the District to govern relations with its employees. 7.Modify the committee or board voting structure or District and member agency board representation on the Water Authority Board of Directors unless the District’s Board has expressly authorized such changes. 8.Create unfunded local government mandates. 9.Create costly, unnecessary, or duplicative oversight roles for the state government of special district affairs. 10.Create new oversight roles or responsibility responsibilities for monitoring special district affairs. 11.Change the San Diego County Water Authority Act regarding voting structure unless it is based on population. 12.Shift the liability to the public entity and relieve private entities of reasonable due diligence in their review of plans and specifications for errors, omissions, and other issues. 13.Place a significant and unreasonable burden on public agencies, resulting in increased cost for public works construction or their operation. 14.Impair the ability of water districts to acquire property or property interests required for essential capital improvement projects. 15.Increase the cost of property and right-of-way acquisition or restrict the use of right-of- waysrights-of-way. 16.Work to silence the voices of special districts and other local government associations on statewide ballot measures impacting local government policies and practices, including actions that could prohibit special districts and associations from advocating for positions on ballot measures by severely restricting the private resources used to fund those activities. 17.Prescribe mandatory conservation-based or other rate structures that override the authority of the board of directors to set its rate structure. 18.Circumvent the legislative committee process, such as the use of budget trailer bills, to advance policy issues, including impacting special districts without full disclosure, transparency, or public involvement. 19.Restrict the District’s ability to utilize a demand forecasting methodology that is best suited locally and for the region. 20.Impose mandates requiring specific water resources to be developed by water agencies that fail to consider local factors such as water reliability, hydrologic and geographic characteristics, and the economic, political, public acceptance, and social environment, which can influence the selection of resources and/or fails to consider or conflicts conflict with existing local and regional planning policies and implementation priorities. 21.Limit the District’s ability to establish local priorities for water resources planning decisions. 22.Impede the District’s ability to conduct its critical mission efficiently and effectively, of always providing and sustaining critical services, and under all conditions. Otay Water District Legislative Program 2025 15 | P a g e 23.Impose regulations that place unreasonable, inequitable, and costly requirements on local agencies without adequate support and resources. VIII.Imported Water Issues A.Bay-Delta i.Co-Equal Goals Support initiatives that: 1.Require the Delta Stewardship Council or DWR to provide periodic analyses of the cost of the proposed Bay-Delta improvements to the Legislature and the public. 2.Provide conveyance and storage facilities that are cost-effective for the San Diego region’s ratepayers and are proportionate to the benefits they receive, improve the reliability and quality of the San Diego region’s water supplies, and protect the Bay-Delta’s ecosystem. 3.Continue to support the co-equalcoequal goals of water supply reliability and environmental restoration embodied in the 2009 Delta bill package. 4.Improve the ability of water-users to divert water from the Bay-Delta during wet periods, when impacts on fish and the ecosystem are lower, and water quality is higher. 5.Encourage the development of a statewide water transfer market to improve water management and allow more efficient use of available resources. 6.Support improved coordination of Central Valley Project and State Water Project (SWP) operations and implementation of water quality requirements that are fair to the users of both projects and do not unfairly shift costs to SWP contractors, or MWD, or its member agencies. 7.Support administrative/legislative actions and funding to advance the Delta Freshwater Pathway, levee improvements, including levee modernization for the existing Delta levee system, levee maintenance programs, including real-time monitoring for the existing Delta levee system, and secure Delta flood-fighting materials and stockpiles. 8.Support state and federal administrative/legislative actions and funding to address the impacts of subsidence on the SWP and prevent future damage caused by unsustainable groundwater pumping. 9.Support continued state ownership and operation of the SWP, including project facilities, as a public resource. 10.Ensure that any reorganization of the State Water Project, including operations and management, preserves the ability for non-State Water Project contractors to access the facility for transportation of water to a non-State Water Project contractor. 11.Authorize and appropriate the federal share of funding for the long-term Bay-Delta solution, including for California EcoRestore. 12.Provide the ongoing state share of funding for California EcoRestore. 13.Provide state funding for water quality monitoring in the Bay-Delta. Such legislation should not place a surcharge on water supply exports, nor should it substantively reduce funding for other measures that protect the environment and public health. Oppose efforts that: 1.Impose water user fees to fund ecosystem restoration and other public purposepurposes, non- water-supply improvements in the Bay-Delta that benefit the public at large. 2.Transfer operational control of the State Water Project or any of its facilities to the Metropolitan Water District of Southern California (MWD), the State Water Contractors, the Otay Water District Legislative Program 2025 16 | P a g e Central Valley Project Contractors, the State and Federal Contractors Water Agency, or any entity comprised of MWD or other water project contractors, or any other special interest group. ii.Bay-Delta Conveyance Project Support initiatives that: 1.Are consistent with the Water Authority’s Board of Directors’ July 25, 2019, adopted Bay- Delta project policy principles, including the following: a.On April 29, 2019, Governor Newsom signed Executive Order N-10-19, directing the preparation of a water resilience portfolio approach that meets the needs of California’s communities, economy, and environment through the 21st century, including consideration of multi-benefit approaches that meet multiple needs at once, and a single-user tunnel Bay-Delta project. b.The Water Authority’s Board supports Governor Newsome’s Executive Order N-10- 19 and directs staff to inform the Newsome Administration that its support for a single-tunnel Bay-Delta project is expressly conditioned upon the project costs being characterized by the Department of Water Resources (DWR) as conservation, or supply charges, as similar facilities historically have been defined in the Metropolitan Water District’s (MWD) SWP contract with DWR. c.As reflected in Table 2 of DWR’s Appendix B to Bulletin 132-17, Data and Computation Used to Determine Water Charges, and for which costs are recovered in Article 22(a) of Delta Water Charge of MWD’s SWP Contract; allow for the exemption of north-of-Delta SWP contractors. 2.Support the establishment of an independent and transparent oversight function to monitor and provide regular updates on project implementation progress, including expenditure tracking, construction progress, project participants’ contributions, and all other relevant activities and developments. 3.Allow access to all SWP facilities, including project facilities, to facilitate water transfers. B.Metropolitan Water District Support initiatives that: 1.Provide an appropriate level of transparency in rate setting, and accountability, and cost control over MWD spending. 2.Protect and acknowledge the investments the Water Authority has made in the form of its preferential rights under the Metropolitan Water District Act and allow member agencies to realize the value of their respective and varyingvaried investments. 3.Require MWD to refund or credit to its member agencies revenues collected from them that result in reserves balances greater than the maximum reserve levels in the manner established pursuant to state legislation. 4.Require MWD to implement actions that advance and support its long-term financial stability, fiscal sustainability, and that moderate fluctuations in rates and charges for its member agencies from year to year, in a publicly transparent manner. 5.Amend the Metropolitan Water District Act to change voting allocation on its Board of Directors based on a member agency’s total financial contribution to MWD, in a manner that Otay Water District Legislative Program 2025 17 | P a g e is fair and equal to ratepayers, and similar to the voting allocation method of the County Water Authority Act. 6.Ensure fair and equitable cost allocation of projects and programs based on the varying needs and demands of its member agencies. C.Colorado River Support initiatives that: 1.Support federal funding through the Inflation Reduction Act and Bipartisan Infrastructure Law to fund near-term and long-term conservation projects that protect California’s water rights and the San Diego region’s river supplies while bolstering the river. 2.Support the sustainability of the Colorado River and provide operational flexibility through the development of storage, including in Lake Mead, and through the renegotiation of the new interim shortage guidelines for the river’s continued operation. 3.Advance strategic long-term water management that includes the ability to transfer, share, and exchange supplies both within the state of California and across state lines. 4.Incorporate seawater desalination as part of a slate of long-term infrastructure projects to support the Colorado River. 5.Recognize the 2003 Quantification Settlement Agreement (QSA) as a model for other Basin states to follow as a means to implement conservation while protecting agriculture and the environment. 6.Support implementation and funding of the California Colorado River Water Use Plan, including the Lower Colorado River Multi-Species Conservation Program 7.Provide funding for Colorado River salinity control projects and other water quality management efforts. 8.Provide for state and federal authorizations and appropriations of non-fee-based funds to implement Salton Sea mitigation and the State’s phased approach to restoration in the form of the Salton Sea Management Program consistent with its obligations under Chapters 611, 612, and 613 of the Statutes of 2003. 9.Limit the QSA mitigation costs imposed on funding parties to the amount committed in accordance with the original QSA legislation. 10.Allow for the option to create an alternate conveyance route, when technically and financially feasible, for reliable delivery of the Water Authority’s Independent Colorado River water supplies and integration of compatible partnership projects along the proposed conveyance routes as a model of the Governor’s Water Resilience Portfolio approach to water management. 11.Support the state’s Salton Sea Management Program under the guidelines of the revised Water Order (Stipulated Order) adopted by the State Water Resources Control Board in November 2017. 12.Preserve the California Colorado River Board 13.Ensure the interests of the members of the California Colorado River Board continue to be addressed in any state government reorganization. 14.Allow for storage of the Water Authority’s Colorado River water supplies to provide enhanced flexibility with annual transfer volumes, support drought contingency planning, and align with the Governor’s Water Resilience Portfolio approach to water management. Otay Water District Legislative Program 2025 18 | P a g e Oppose initiatives that: 1.Impose additional mitigation costs or obligations for the Salton Sea on the non-state parties to the QSA. 2.Eliminate the California Colorado River Board without providing a comparable structure or forum that ensures the Water Authority and member agencies’ interests in the Colorado River are preserved. 3.Implement additional long-term conservation projects to address drought and climate change that do not address potential impacts toon the environment, specifically the Salton Sea. 4.As part of the development of the next set of river management guidelines, impose potential future reductions on just the Lower Basin rather than balancing potential reductions between both the Upper and Lower Basins. D.State Water Project Support initiatives that: 1.Provide for development of a comprehensive state water plan that balances California's competing water needs, incorporates the water resources and infrastructure concepts included in the Governor’s “Water Resilience Portfolio” and “California’s Water Supply Strategy Adapting to a Hotter, Drier, Future,” and results in a reliable and affordable supply of high- quality water for the State of California and the San Diego region. Oppose initiatives that: 1.Make urban water supplies less reliable or substantially increases the cost of imported water without also improving the reliability and/or quality of the water. 2.Revise the Central Valley Project Improvement Act to Jeopardize the Act's environmental integrity, compromise State Water Project supply reliability, a n d/or limit the ability of urban agencies to transfer and/or bank CVP water for use both within and outside the CVP service area. 3.Transfer operational control of the State Water Project or any of its facilities to MWD, the State Water Project contractors, Central Valley Project contractors, the State and Federal Contractors Water Agency, any entity comprised of MWD or other water project contractors, or any other special interest group. IX.Optimize District Effectiveness Support initiatives that: 1.Manage District resources in a transparent and fiscally responsible manner. 2.Allow utilities to avoid critical peak energy pricing or negotiate energy contracts that save ratepayers money. 3.Develop reasonable Air Pollution Control District engine permitting requirements. 4.Reimburse or reduce local government mandates. 5.Allow public agencies to continue offering defined benefit plans. 6.Result in predictable costs and benefits for employees and taxpayers. 7.Eliminate abuses. Otay Water District Legislative Program 2025 19 | P a g e 8.Retain local control of pension systems. 9.Are constitutional, federally legal, and technically possible. 10.Promote cost- effective and reasonably feasible requirements. Oppose initiatives that: 1.Restrict the use of, or reallocate, district property tax revenues to the detriment of special districts. 2.Create an unrealistic ergonomic protocol. 3.Micromanage special district operations. 4.Balance the state budget by allowing regulatory agencies to increase permitting fees. 5.Tax-dependent benefits. 6.Require new reporting criteria on the energy intensity involved in water supply. X.Safety, Security, and Information Technology Support initiatives that: 1.Provide funding for information security upgrades to include integrated alarms, access/egress, and surveillance technology. 2.Provide incentives for utilities and other local agencies to work cooperatively, share costs or resources. 3.Provide funding for communication enhancements, wireless communications, GIS, or other technological enhancements. 4.Encourage or promote compatible software systems. 5.Fund infrastructure and facility security improvements that include facility roadway access, remote gate access, and physical security upgrades. 6.Protect state, local, and regional drinking water systems from terrorist attack or deliberate acts of destruction, contamination, or degradation. 7.Provide funds to support training or joint training exercises to include contingency funding for emergencies and emergency preparedness. 8.Equitably allocate security funding based on need, threats, and/or population. 9.Encourage or promote compatible communication systems. 10.Encourage and promote funding of the Department of Homeland Security Risk Mitigation programs. 11.Recognizes water agencies as emergency responders in the event of a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent and mitigate loss or impairment of life, health, property, or essential public services due to natural disasters (e.g., wildfires, earthquakes), power outages, as well as terrorist and other criminal activities. 12.Provide state grants or other funding opportunities to support seismic risk assessment and mitigation plans, or to mitigate vulnerabilities. 13.Provide funding for projects that enhance security against terrorist acts or other criminal threats to water operation, services, facilities, or supplies. 14.Provide funding for projects that improve the security of the District facilities and operations. 15.Provide funding to support technologies that support remote working, when necessary to prevent loss of or damage to life, health, property, or essential public services. Otay Water District Legislative Program 2025 20 | P a g e Oppose initiatives that: 1.Create unnecessary, costly, or duplicative security or safety mandates. 2.Require expanded water system descriptions or additional public disclosure of public water systems details for large water suppliers in Urban Water Management Planning documents, potentially compromising public water systems, and creating a conflict with the Department of Homeland Security’s recommendation to avoid reference to water system details in plans available to the public. XI.Water Quality Issues Support initiatives that: 1.Assure cost-effective remediation and cleanup of contaminates contaminants of concern that have impacted groundwater and surface water. 2.Incorporate sound scientific principles in adopting drinking water standards for drinking water concerns. 3.Exempt the conveyance, storage, or release of water supplies from regulation as a discharge under the Clean Water Act and other water quality control laws. 4.Revise NPDES standards and procedures to facilitate inland discharge and the use of recycled water. 5.Establish appropriate quality standards, testing procedures, and treatment processes for emerging contaminants. 6.Alter the definition of “lead free” to reduce the permissible amount of lead in fixtures, plumbing, and pipe fittings to be installed for the delivery of drinking water. 7.Exempt purified wastewater from regulation as a discharge under the Clean Water Act. 8.Implement source control for management the management and prevention of contamination by constituents of emerging concern. 9.Provide the necessary funding for research on the occurrence, treatment, health effects, and environmental cleanup related to contamination of drinking water sources. 10.Implement and fund the San Diego Regional Water Quality Control Board’s triennial review of water quality standards. 11.Provide funding and support for Colorado River salinity control projects and other water quality management efforts. 12.Direct the state’s participation or assistance in water quality issues related to or threatening the Colorado River water source. 13.Streamline permitting of facilities constructed to improve water quality. 14.Ensure consistent application of the law by the State Water Resources Control Board and the nine regional water quality control boards. Oppose initiatives that: 1.Eliminate the State Water Resources Control Board and/or the nine regional water quality control boards without ensuring the functions and expertise of the boards are maintained in any reorganized entity. 2.Regulate the conveyance, storage, or release of water supplies as discharge under the Clean Water Act and other water quality control laws. 3.Make water suppliers financially and legally responsible for the mitigation of pollution contamination by third parties. Otay Water District Legislative Program 2025 21 | P a g e 4.Make water suppliers financially and legally responsible for testing or correction ofcorrecting any water quality-related issues associated with private property or on-site plumbing systems. XII.Water Recycling and Potable Reuse Support initiatives that: 1.Reduce restrictions on recycled water usage or promote consistent regulation of recycled water projects to reduce impediments to the increased use of recycled water. 2.Reduce restrictions on injecting recycled water into basins where there is no direct potable use. 3.Advocate for direct potable reuse. 4.Advocate for recycled water use upstream of lakes and reservoirs if protected by urban water runoff protection systems. 5.Provide financial incentives for recharge of groundwater aquifers using recycled water. 6.Make recycled water regulations clear, consolidated, and understandable to expedite related project permitting. 7.Promote recycled water as a sustainable supplemental source of water. 8.Allow the safe use of recycled water. 9.Facilitate the development of technology aimed at improving water recycling. 10.Increase funding for water recycling projects. 11.Support continued funding of the Title XVI Water Reclamation and Reuse Program, including Water Reclamation and Reuse Projects, the WaterSMART Program, and the Desalination and Water Purification Research Program. 12.Increase awareness of the ways recycled water can help address the region’s water supply challenges. 13.Create federal and state incentives to promote recycled water use and production. 14.Establish federal tax incentives to support U.S. companies in the development of new water technologies that can lower productions costs, address by products such as concentrates, and enhance public acceptance of recycled water. 15.Establish a comprehensive national research and development, and technology demonstration, program to advance the public and scientific understanding of water recycling technologies to encourage reuse as an alternative source of water supply. 16.Provide incentives for local agencies to work cooperatively, share costs or resources to promote or expand the use of recycled water. 17.Further refine emergency regulations to reward local suppliers that have invested in using recycled water for landscape irrigation to maintain an incentive to continue expanding areas served by recycled water. 18.Encourage the use of recycled water in commercial, industrial, institutional, and residential settings. 19.Recognize and support the development of potable reuse as a critical new water supply. 20.Define purified recycled water as a source of water supply and not as waste. 21.Mandate the reduction of wastewater discharges to the ocean, absent inclusion of funding to offset the significantly high costs of implementation. 22.Authorize local governmental agencies to regulate the discharge of contaminants to the sewer collection system that may adversely affect water recycling and reuse. Otay Water District Legislative Program 2025 22 | P a g e 23.Authorize and facilitate expanded use of local water resources, including water recycling, potable reuse, graywater, and rainwater harvesting (e.g., cisterns and rain barrels), and brackish groundwater. 24.Streamline regulatory processes and requirements to encourage and support the development of potable reuse and non-potable reuse as a municipal water supply. 25.Recognize that the entire interconnected urban water cycle, as well as public health and safety, must be taken into consideration in long-term water use efficiency policies, particularly including the unintended consequences of declining flows on water, wastewater, potable reuse, and recycled water systems. 26.Encourage dual plumbing in new development where non-potable recycled water is likely to be available to enable utilization of recycled water. 27.Promote uniform regulatory interpretation of state recycled water system standards. 28.Support beneficial revisions to the California Plumbing Code that facilitate recycled water systems. Oppose initiatives that: 1.Restrict use of recycled water for groundwater recharge. 2.Establish new water or recycled water fees solely to recover State costs without also providing some benefit. 3.Limit the ability of local governmental agencies to regulate the discharge of contaminants to the sewer collection system that may adversely affect water recycling and reuse. 4.Establish unreasonable regulatory requirements or fees for the safe use of recycled water, which may unreasonably impede or create a disincentive tofor its further development. 5.Mandate the reduction of wastewater discharges to the ocean, absent inclusion of funding to offset the significantly high costs of implementation. 6.Establish water use efficiency standards, which do not reflect the impact that higher TDS recycled water has on the usage rates to reduce salt loading in areas of use. XIII. Water Rights Modernization Support initiatives that: 1.Protect existing water rights, water-rights priority, and local agencies’ ability to use water resources for their present and future water supply reliability and environmental well-being. 2.Support funding for data modernization tools needed to monitor and enforce water rights priorities and protect State Water Project supplies, including funding and technical assistance to fully implement existing laws requiring metering of diversions and potential legislation or regulation aimed at providing real-time water diversion data. 3.Support voluntary water transfers and exchanges as the means to reallocate water supplies, including for the environment, to meet water supply reliability goals and achieve co-equal goals of the Bay-Delta and interstate solutions to limited Colorado River supplies. 4.Support more flexible regulations to enhance the ability to divert water in times of high storm runoff and snow melt while protecting existing water rights and the environment. 5.Support increases in civil penalties to deter violations of State Board orders, including curtailment orders. Otay Water District Legislative Program 2025 23 | P a g e XIV.Water Services and Facilities Support initiatives that: 1.Provide funding to implement actions identified in the California Water Action Plan to lay a solid fiscal foundation for implementing near-term actions, including funding for water efficiency projects, wetland and watershed restoration, groundwater programs, conservation, flood control, and integrated water management, and result in a reliable supply of high-quality water for the San Diego region. 2.Promote the coordination and integration of local, state, and federal climate change policies and practices to the greatest extent feasible. 3.Fund or otherwise facilitate ongoing implementation of the Quantification Settlement Agreement. 4.Provide reliable water supplies to meet California’s short and long-term needs. 5.Promote desalination pilot studies and projects. 6.Encourage feasibility studies of water resource initiatives. 7.Increase funding for infrastructure and grant programs for construction, modernization, or expansion of water, wastewater treatment, reclamation facilities, and sewer systems, including water recycling, groundwater recovery and recharge, surface water development projects, and seawater desalination. 8.Fund enhancements to water treatment, recycling, and other facilities to meet increased regulations. 9.Mandate uniform or similar regulations and procedures by state agencies in the processing and administering of grants and programs. 10.Streamline grant application procedures. 11.Reduce regulations and other impediments for willing sellers and buyers to engage in water transfer agreements. 12.Promote or assist voluntary water transfers between willing buyers and willing sellers and move those transactions through without delay. 13.Streamline the permitting and approval process for desalination and other water-related facilities and implement water transfers that will improve water management. 14.Establish reasonable statewide approaches to sewer reporting standards. 15.Generate greater efficienciesefficiency, better coordinate program delivery, and eliminate duplication in programs for source water protection without lessening the focus on public health of the state’s Drinking Water Program. 16.Target efforts to fix specific issues with water supplies within the state’s Drinking Water Program. 17.Establish federal tax incentives to support U.S. companies in the development of new desalination technologies that can lower productions costs, eliminate, or reduce impingement or entrainment, reduce energy use, and enhance public acceptance of desalinated water. 18.Establish a comprehensive national research and development, and technology demonstration program to advance the scientific understanding of desalination to expand its use as an alternative source of water supply. 19.Require the State Water Resources Control Board to exercise its authority, ensure robust funding, and implement the Salton Sea mitigation and restoration plan, meet state obligations, and work with QSA stakeholders to find workable solutions to ensure the continuation of IID water transfers. Otay Water District Legislative Program 2025 24 | P a g e 20.Support solutions to water supply issues that address common challenges, provide a comprehensive approach that is fair to all users, balance the needs of urban and rural communities, and take into consideration the interests of all stakeholders as well as the impact to the environment. 21.Further refine emergency drought regulations to eliminate a cap on credits and adjustments so as not to impose undue burden, financial or otherwise, on communities that have already invested in water conservation, development of new water sources, storage, or loss prevention. 22.Provide funding for water infrastructure development, infrastructure security, and rehabilitation and replacement projects that benefit ratepayers. 23.Provide funding for habitat preservation programs that address impacts resulting from the construction or operation of water system facilities. 24.Provide funding for projects that enhance security against terrorist acts or other criminal threats to water operation, services, facilities, or supplies. 25.Provide incentives that encourage contractors to recycle or reduce waste associated with the construction of water facilities. 26.Improve the local agencies’ efforts to maintain and protect its their property, rights of way, easements, pipelines, and related facilities and minimizes liability to local agencies and the District. 27.Protect the local agencies’ properties from restrictions when surrounding properties are incorporated into preservation areas. 28.Encourage the use of current and emerging technologies for monitoring and assessing the condition of large diameterlarge-diameter pipelines. 29.Encourage water suppliers to develop and execute asset management programs that include visual inspections, internal/external inspections, asset condition assessments, corrosion mitigation, and reis risk analysis in a manner that recognizes the individuality and uniqueness of each water supplier and its systems. 30.Improve the District’s efforts to maintain and protect its property, rights of way, easements, pipelines, and related facilities and minimizes minimize liability to the District. 31.Protect the District, other agencies, and the Water Authority properties from restrictions when surrounding properties are incorporated into preservation areas. 32.Provide funding to water agencies for the voluntary retrofit of facilities for on-site generation of chlorine. 33.Provide funding for water supplier asset management programs that involve the active monitoring, repair, or replacement of physical assets and infrastructure, which includes pipes, valves, facilities, equipment, and other infrastructure. 34.Provide for restrictions on price gouging during public safety power shutoff events and for at least 72 hours following restoration of power. 35.Provide that de-energization or public safety power shutoff events may be included as a condition constituting a state of emergency or local emergency. 36.Provide a tax exemption for the sale of, or storage, use, or consumption of, a backup electrical resources, which is are purchased for exclusive use by a city, county, special district, or other entity of local government during a de-energization or public safety power shutoff event. 37.State that the use of alternative power sources (such as generators) by essential public services during de-energization or public safety power shutoff events shall not be limited by any state or local regulations or rules. Otay Water District Legislative Program 2025 25 | P a g e 38.Recognize the critical role the District, local agencies, and the Water Authority play as Public Safety Partners in Public Safety Power Shutoff events and other natural or man-made disasters. Further recognizes the importance of the agency’s ability to provide immediate and sustained response for extended periods of time. 39.Provide financial support to local projects designed to mitigate or adapt to potential negative impacts of climate change on water supply reliability. 40.Investigate and provide financial support to projects designed to mitigate potential negative impacts of climate change on water supply reliability. Oppose initiatives that: 1.Restrict local control and discretions over water facilities, asset management, and facility operations. 2.Make urban water supplies less reliable or substantially increases the cost of imported water without also improving the reliability and/or quality of the water. 3.Create unrealistic or costly water testing or reporting protocols. 4.Disproportionately apportion the cost of water. 5.Create undo hurtles hurdles for seawater desalination projects. 6.Create unreasonable or confusing sewer reporting standards. 7.Create administrative or other barriers to sales between willing buyers and willing sellers that delay water transfers. 8.Create a broad-based user fee that does not support a specific local program activity or benefit; any fee must provide a clear nexus to the benefit local ratepayers or local water supplies from the establishment that charges or fees would provide. 9.Create unrealistic or is costly to obtain water quality standards for potable water, recycled water, or storm water runoff. 10.Change the focus of the state’s Drinking Water Program or weaken the parts of the program that work well. 11.Lessen the focus on public health of the state’s Drinking Water Program. 12.Impose undue burden, financial or otherwise, on communities that have already invested in water conservation, development of new water sources, storage, or loss prevention. 13.Impose additional mitigation costs or obligations for the Salton Sea on the non-state parties to the Quantification Settlement Agreement. 14.Impair the District and other local water agencies’ ability to provide and operate the necessary facilities for a safe, reliable, and operational flexible water system. 15.Limit local agencies’ sole jurisdiction over planning, design, routing, approval, construction, operation, or maintenance of water facilities. 16.Restrict local agencies’ ability to respond swiftly and decisively to an emergency that threatens to disrupt water deliveries or restricts the draining of pipelines or other facilities in emergencies for repairs or preventive maintenance. 17.Authorize state and federal wildlife agencies to control, prevent, or eradicate invasive species in a way that excessively interferes with the operations of water supplies. 18.Prohibit or in any way limit the ability of local agencies from making full beneficial use of any water, wastewater, or recycling facility and resource investments. 19.Prohibit the use of alternative contract procurement methods that can be utilized in the construction of water facilities. Otay Water District Legislative Program 2025 26 | P a g e 20.Shift the risks of indemnity for damages and defense of claims from contractors to the District. 21.Impair local agencies’ efforts to acquire property or property interests required for essential capital improvement projects or acquisition of property to meet pipeline water drain-down needs for existing facilities. 22.Increase the cost of property and right of wayright-of-way acquisition. 23.Restrict the District’s use of public rights of way or increase the cost of using public rights of way. 24.Restrict the transfer of property acquired for purposes of environmental mitigation or environmental mitigation credits to other public or private entities for long-term management. 25.Establish prescriptive leak loss control requirements for the operation, maintenance, and asset management of water conveyance and distribution systems, which fail to consider full life- cycle costing. 26.Establish meter testing requirements for source water meters that fail to consider industry standards and cost-effectiveness. 27.Limit the discretion of the District from protecting the security and privacy of comprehensive inventories of all assets, which includes include infrastructure location, condition, performance, and useful life. 28.Impair local agencies’ ability to execute the planning, design, and construction of projects using their own employees. 29.Limit the autonomy of discretion of water suppliers to develop and execute asset management inspection programs that include visual inspections, internal/external inspections, asset condition assessments, and corrosion mitigation in a manner that recognizes the individuality and uniqueness of each water supplier and its systems. 30.Authorize air quality management districts or other regulatory bodies to adopt or maintain rules that would limit or prohibit a local government entity’s use of a state and/or federally complaint compliant natural gas-powered generator during a de-energization or public safety power shutoff event. 31.Would inhibit the District from fulfilling its critical role as a Public Safety Partner and making immediate and sustained response in a Public Safety Power Shutoff event or and other natural or man-made disasters, such as the CARB Advanced Clean Fleet regulation. 32.Would inhibit the District from fulfilling its critical role as an essential service provider from procuring and operating fleets, which meet the needs to perform routine and emergency maintenance of water and wastewater systems, such as the CARB Advanced Clean Fleet regulation. 33.Require the incorporation of climate change considerations into regional and local water management planning that does not provide flexibility to the local and regional water agencies in determining the climate change impact and identification of adaptation and mitigation measures. 34.Impose top-down “one-size-fits-all” climate change mandates that fail to account for hydrological, meteorological, economic, and social variation across the state and/or that fail to incorporate local and regional planning and implementation priorities and protocols. Otay Water District Legislative Program 2025 27 | P a g e XV.Water Use and Efficiency Support initiatives that: 1.Provide funding for incentives for water-use efficiency and water conservation programs, including water-efficient devices, practices, and demonstration projects and studies. 2.Encourage the installation of water-efficient fixtures in new and existing buildings. 3.Promote the environmental benefits of water-use efficiency and water conservation. 4.Enhance efforts to promote water-use efficiency awareness. 5.Offer incentives for landscape water-efficient devices, including, but not limited to ET controllers and soil moisture sensors. 6.Develop landscape retrofit incentive programs and/or irrigation retrofit incentive programs. 7.Permit or require local agencies to adopt ordinances that require or promote water-efficient landscapes for commercial and residential developments. 8.Create tax incentives for citizens or developers who install water-efficient landscapes. 9.Create tax incentives for citizens who purchase high-efficiency clothes washers, dual-flush and high-efficiency toilets, and irrigation controllers above the state standards. 10.Expand community-based water-use efficiency and education programs. 11.Facilitate and encourage the use of rainwater-capture systems, i.e., rain barrels, cisterns, etc., and alternative water sources, i.e., air conditioner condensate for use in irrigation. 12.Develop incentives for developers and existing customers to install water-efficient landscapes in existing developments or new construction. 13.Encourage large state users to save water by implementing water-efficient technologies in all facilities, both new and retrofit. 14.Encourage large state water users to save water outdoors. 15.Educate all Californians on the importance of water, and the need to conserve, manage, and plan for the future needs. 16.Encourage technological research targeted to more efficient water use. 17.Give local agencies maximum discretion in selecting water-use efficiency and conservation programs that work for their customers and the communities they serve. 18.Require the Department of Water Resources to implement a uniform statewide turf rebate subsidy or incentive program. 19.Restrict Property Owner Associations from forbidding the use of California native plants, other low water use plants, mulch, artificial turf, or semi-permeable materials in well- maintained landscapes. 20.Restrict Property Owner Associations from forbidding retrofits of multiple- unit facilities for the purpose of submetering, if feasible. 21.Ensure plumbing codes and standards that facilitate the installation and/or retrofit of water- efficient devices. 22.Establish standards for the utilization of high-efficiency commercial and residential clothes washers. 23.Provide federal tax-exempt status for water-use efficiency rebates, consistent with income tax treatment at the state level. 24.Encourage the use of graywater where it complies with local guidelines and regulations and is cost-effective. 25.Provide incentives, funding, and assistance to water agencies so that they can meet the water demand management measure requirements in the Urban Water Management Planning Act. Otay Water District Legislative Program 2025 28 | P a g e 26.Provide incentives, funding, and other assistance to facilitate water-use efficiency partnerships with the energy efficiency sector. 27.Provide incentives, funding, and other assistance where needed to facilitate market transformation and gain wider implementation of water- efficient indoor and outdoor technologies and practices. 28.Recognize local control in determining water use efficiency criteria, such as the impact of recycled water salinity on irrigation use and efficiency for the application of non-potable recycled water. 29.Encourage reasonable tracking of water use and improved efficiency in the Commercial, Industrial, and Institutional (CII) sector. 30.Recognize local control in determining how to meet an overall efficient water use goal, based on the combined efficient indoor use, outdoor use, and leak loss, as established under the criteria provided for in statute. 31.Ensure accurate and streamlined reporting of implementation of water-use efficiency and conservation measures. 32.Promote statewide implementation of water-use efficiency best management practices and demand management measures as defined in the Urban Water Management Planning Act. Oppose efforts that: 1.Weaken federal or state water-efficiency standards. 2.Introduce additional analytical and reporting requirements that are time-consuming for local agencies to perform and result in additional costs to consumers, yet yield no water savings. 3.Permit Property Owners Associations to restrict low water use plants, mulch, artificial turf, or semi-permeable materials in landscaping. 4.Repeal cost-effective efficiency standards for water-using devices. 5.Repeal cost-effective efficiency standards for water-using devices. 6.Create stranded assets by establishing long-term demand management, water-use efficiency, and water supply requirements that are inconsistent with the Urban Water Management Planning Act. 7.Prescribe statewide mandatory urban and agricultural water-use efficiency practices, including, but not limited to, methods, measures, programs, budget allocation, and designation of staff dedicated to water conservation programs, that override the authority of the boards of directors of local water agencies to adopt management practices that are most appropriate for the specific needs of their water agencies. 8.Mandate regulation of the CII Sector in a manner that is discriminatory, or sets unachievable Best Management Practices or compliance targets, or would otherwise impair economic activity or the viability of the CII sector. 9.Mandate that water agencies include an embedded energy calculation for their water supply sources in the Urban Water Management Plan or any other water resource planning or master planning document. 10.Require redundant reporting of water conservation-related information. Otay Water District Legislative Program 2025 29 | P a g e XVI.Workforce Development Support initiatives that: 1.Advocate for local, regional, and state programs that support a high-performing workforce and increase the talent pool for water agencies. 2.Advocate for military veterans in the water industry workforce to ensure that veterans receive appropriate and satisfactory credit towards water and wastewater treatment system certifications in California for work experience, education, and knowledge gained in military service. 3.Lower employment barriers for military veterans and transitioning military and that sustain vital water and wastewater services for the next generation. 4.Recruit and support veterans and transitioning military through internships, cooperative work experiences, and other resources. 5.Recruit and support underserved communities in the water industry through internships, cooperative work experiences, and other resources. 6.Advocate and encourage candidate outreach and recruitment in relation to mission-critical job categories in water and wastewater. 7.Ensure advanced water treatment operators and distribution system operators of potable reuse and recycled water facilities have a career advancement path as certified water and/or wastewater treatment plant operators. 8.Increase the number of educational institutions that provide water-industry related training and related program criteria, including but not limited to trades, certifications, and degrees. 9.Increase the talent pool of future water industry workers through educational programs, internships, and other resources. 10.Provide funding to educational institutions, water agencies, and workforce students regarding careers in the water industry. 11.Develop qualified candidates for positions in the water industry. 12.Build awareness of water industry-related jobs through student outreach, including but not limited to K-12, community colleges, universities, and other educational institutions, as well as outreach to the public. 13.Promote regional water and wastewater workforce development programs. Oppose initiatives that: 1.Hinder military veterans from using their previous experience, education, and knowledge toward a career in water. 2.Regulate agencies from hiring an experienced, educated, and talented water-industry workforce. Otay Water District Legislative Program 1 | Page Effective Date: 04/01/2026 Legislative Program Policy Guidelines Purpose The Otay Water District’s legislative policy guidelines provide direction to staff and the District’s legislative advocates when they evaluate proposed legislation that may affect the District, other local water agencies, or regional water management and use. Legislation that meets or fails to meet the principles set forth in the guidelines may be supported or opposed accordingly. The guidelines permit the General Manager, District staff, and the District’s legislative advocates to act in a timely manner between Board meetings on issues clearly within the guidelines. While the title of this document suggests these policy guidelines are applicable solely to state and federal legislative issues reviewed by the District and its wholesale supplier the San Diego County Water Authority (Water Authority), increasingly state and federal regulatory and administrative bodies are developing rules, guidelines, white papers, and regulations that can significantly affect the District, its wholesale supplier, and other local water agencies. District staff, including the District’s legislative consultants, often utilize these Legislative Policy Guidelines to provide guidance on emerging and active regulatory and administrative issues. Legislation that does not meet the principles set forth in the guidelines or that has potentially complicated or varied implications will not be acted upon by staff or the legislative advocates in between Board meetings and will instead be presented to the Board directly for guidance in advance of any position being taken. The Water Authority has its own legislative policy guidelines at a wholesale and regional level. District staff continues to evaluate the Water Authority’s policy guidelines that may have a direct impact on the District, and has incorporated into the District’s guidelines. Although the District is a retail agency and is focused on its local service area, there may be issues or policies contained in the Water Authority’s Legislative Policy Guidelines that could benefit or impact the District, the General Manager, District staff, and the District’s legislative advocates may act on those issues, respectively. Attachment C Otay Water District Legislative Program 2 | Page Table of Contents The Otay Water Legislative Policy Program Guidelines include the following categories: I.Binational Issues…………………………………………....……………... Page 3 II.Biological and Habitat Preservation…………………………………….. Page 3 III.Desalination……………………………………………………………….. Page 4 IV.Drought and Extreme Weather Response………………………………. Page 4 V.Energy……………………………………………………………………… Page 5 VI.Financial Issues…………………………………………………………… Page 7 A.Fees, Taxes, and Charges………………………….......................... Page 7 B.Funding…………………………………………………………….. Page 8 C.Rates………………………………………………………………... Page 11D.Water Bonds……………………………………………………….. Page 11 E.Affordability……………………………………………………. Page 12 VII.Governance and Local Autonomy……………………………………….. Page 13 VIII.Imported Water…………………………………………………………... Page 15 A.Bay-Delta……………………………………………………………… Page 15 i.Co-equal Goals……………………………………………………. Page 15 ii.Bay-Delta Conveyance Project…………………………………… Page 16 B.Metropolitan Water District…………………………………………… Page 16 C.Colorado River………………………………………………………… Page 17 D.State Water Project…………………………………………………….. Page 18 IX.Optimize District Effectiveness……………………...…………....………. Page 18 X.Safety, Security, and Information Technology……………....................... Page 19 XI.Water Quality…………………………………………………………….. Page 20 XII.Water Recycling and Potable Reuse……………………………………… Page 21 XIII.Water Rights Modernization……………………………………………… Page 22 XIV.Water Service and Facilities……………………………………………….. Page 23 XV.Water Use and Efficiency………………………………………………….. Page 27 XVI.Workforce Development………………………………………………….. Page 29 Otay Water District Legislative Program 3 | Page I.Binational Issues Support initiatives that: 1. Foster binational cooperation to address drought and climate change on the Colorado River ina way that protects the San Diego/Baja California region’s interests and river supplies.2. Promote and provide funding for cross-border water supply and infrastructure developmentprojects to serve the San Diego/Baja California border region while protecting local interests.3. Encourage enhanced cooperation between entities in San Diego and Baja California in the development of supply and infrastructure projects that will benefit the entire border region.4. Encourage state and federal funding to support collaborative binational projects to improvewater quality and protect human health and the environment within the broader San Diegoregion.5. Develop and enhance communications and understanding of the interdependence of communities on both sides of the border with the goal of improved cross-border cooperation. Oppose initiatives that: 1. Would usurp local control over the financing and construction of water supply and infrastructure projects in the San Diego/Baja California region. II.Biological and Habitat Preservation Support initiatives that:1. Support development of comprehensive multispecies habitat conservation plants thatanticipate and mitigate project development impacts while preserving representativeecosystems, rather than individual species.2. Exempt operation, maintenance, and repair of water system facilities from endangered species and other habitat conservation regulations because they provide beneficial cyclical habitatvalues to declining species and foster biological diversity in California.3. Provide environmental regulatory certainty for the implementation of existing and proposedlong-term water supply programs.4.Streamline filing of CEQA notices of determination for multicounty water projects by making those notices available on the CEQAnet website through the Governor’s office of Planningand Research.5.Incorporate an emergency exemption for “take” of a listed species under the state or federalEndangered Species Acts when necessary to mitigate or prevent loss of or damage to life,health, property, or essential public services. 6. Encourage species listings, critical habitat designation, and recovery plans developed pursuantto the state or federal Endangered Species Acts to be consistent with existing interstatecompacts, tribal treaties, and other state and federal agreements.7. Support the eradication of invasive species or the prevention of them from becoming established in watersheds providing water supplies. Oppose initiatives that: 1. Reduce or limit the use of existing water rights or supplies, 2. Restrict the development of future water supplies. Otay Water District Legislative Program 4 | Page 3. Interfere with operating, maintaining, or repairing existing water conveyance and storage facilities. 4. Impose endangered species or habitat conservation requirements that restrict the operation, maintenance, or repair of public water supply, conveyance, treatment, or storage facilities. 5.Provide for after-the-fact reduction in quantity or quality of a public water supply due to new restrictions on the operation or use of water supply facilities unless funding for alternate sources of water is provided. 6. Impose a “utility user fee,” or “surcharge,” on water for the purposes of financing open space/habitat preservation, restoration, or creation. III.Desalination Support initiatives that:1. Provide funding for seawater desalination studies and facilities.2. Recognize and support the development of seawater desalination as a critical new water supply for the state, including San Diego County.3.Streamline permitting of desalination facilities.4.Preserve and protect potential seawater desalination sites and existing coastal facilities,including intake and discharge infrastructure that could be used or reused by a seawaterdesalination facility. 5.Ensure that desalination intake and discharge regulations are science-based, considering site-specific conditions and recognizing that not all technologies or mitigation strategies arefeasible or cost-effective at every site.6.Incorporate seawater desalination as part of a slate of long-term infrastructure projects to support the Colorado River. IV.Drought and Extreme Weather Response Support initiatives that:1.Ensure the District and other local agencies, including the Water Authority and San Diego County water agencies, including ratepayers, receive the water supply benefits of investments in water supply. 2. Allow local agencies to achieve compliance with emergency or nonemergency drought regulations or objectives through a combination of water conservation measures and development and implementation of water supply sources that are not derived from the Bay- Delta, and credit these investments to the agencies and ratepayers making them. 3.Allow local agencies to account for all water supplies available during droughts and other events when calculating the water supply shortage level. Otay Water District Legislative Program 5 | Page 4.Create a process for the development and implementation of emergency drought declarations and regulations that recognize variations among communities, regions, and counties with respect to their abilities to withstand the impacts and effects of drought. 5. Recognize variations among communities, regions, and counties with respect to their abilities to withstand the impacts and effects of droughts and ensure that any temporary or permanent statutory or regulatory direction for improving water-use efficiency to meet statutory or regulatory goals or standards is focused on regional achievement of objectives rather than a one-size-fits-all approach. 6. Unlock federal and state funding to supplement state and local recovery efforts in areas affected by extreme weather. 7. Support and encourage the transfer and storage of water during both emergency and non- emergency conditions to reduce the impact of drought. Oppose initiatives that: 1.Disincentivize or impede water agencies from making investments to maximize the potential for recycled water, potable reuse, desalination, and other drought-resilient water supplies. 2.Create a “one-size-fits-all” approach to emergency drought declarations and regulations that ignores variations among communities, regions, and counties and the investments their ratepayers made to improve their ability to withstand the impacts and effects of drought and climate change. 3. Hinder federal and state funding to supplement state and local recovery efforts in areas affected by extreme weather. V.Energy Support initiatives that: 1.Provide opportunities for reduced energy rates for the District and other local water agencies. 2. Provide protection to the District and other local water agencies from energy rate increases and rate relief for the District and water agencies. 3. Provide funding, including state and federal grants, for in-line hydro-electric, solar, wind, battery storage, biogas, cogeneration, nanogrids, microgrids, closed-loop pumped storage facilities, and other renewable energy generation or storage technology as means of reducing greenhouse gas emissions and energy cost. 4. Promote funding for the use of renewable energy in the operation of District facilities. 5. Prohibit investor-owned utilities from implementing rate changes that undercut the financial viability of renewable energy facilities obligated under long-term Power Purchase Agreements. 6.Provide greater flexibility in the utilization of the District’s facilities for electrical generation and distribution and acquisition of electricity and natural gas. 7.Provide the District with greater flexibility in the licensing, permitting, interconnection, construction, and operation of its existing and potential in-line hydroelectric, solar, wind, Otay Water District Legislative Program 6 | Page battery, nanogrid, microgrid, closed-loop pumped-energy storage projects, and other renewable generation or storage technology. 8.Make SWP power available for all water projects that reflect proportional payments made by member agencies. 9.Promote the classification of electricity generated by in-line hydroelectric and closed-loop pumped-energy storage facilities as environmentally sound. 10. Promote the expansion of closed-loop pumped-energy storage facilities to provide clean and environmentally sound energy resources that provide electric reliability and resiliency, especially during times of potential blackouts. 11. Promote the expansion of in-line hydroelectric energy recovery systems at treatment facility discharge systems. 12. Promote the production, purchase, delivery, and use of alternative sources of energy on a wholesale basis. 13. Provide clear statutory, regulatory, or administrative authority for the Water Authority to wheel acquired or produced power to itself, the District, or entities with which the Water Authority is under contract for the purchase, treatment, transport, or production of water. 14.Recognize and monetize all grid ancillary services that pumped hydro-energy storage provides and support fair compensation in the wholesale energy market for such services. 15. Provide timely, efficient, and cost-effective interconnection of energy loads and resources such as solar, in-line hydroelectric, pumped-energy storage, and other renewable energy generation or storage technologies to the electric distribution and transmission grid. 16.Recognize the value of large-scale hydropower and pumped-energy storage facilities in assisting the state to meet its renewable and zero-carbon emission goals of 100% by 2045. Oppose initiatives that: 1.Adversely affect the cost or reliability of energy needed to operate MWD’s facilities, SWP facilities, or the facilities of the Water Authority and the District. 2. Impose greenhouse gas reduction obligations on a public water agency for electricity purchased or produced for the sole purpose of operating its system. 3. Adversely affect the ability of the District or other water agencies in the county to own, operate, and/or construct work for supplying its own facilities with natural gas and electricity. 4.Impede the District or other water agencies in the county, the ability to contract for, deliver, and use natural gas or electricity purchased from the United States, the State of California, and any other public agency or private entity, and provide, sell, exchange, or deliver the gas or electricity to itself, any public agency or private entity. 5.Reduce the District’s ability to always maintain high operational efficiency. 6.Restrict the District’s ability to expand or improve infrastructure or facilities. 7. Restrict or cap future energy demands needed for possible expansion of recycled water, potable reuse, and/or desalination projects. 8.Adversely affect the District’s ability to expand cogeneration or polygeneration at planned or existing facilities. Otay Water District Legislative Program 7 | Page 9. Inhibit the scientific advancement of energy and water-efficient/conserving technologies that may be implemented at the District or other agency facilities. 10. Prevent the District from enhancing energy reliability and independence for its facilities. 11. Do not count or credit qualified renewable energy projects toward the accomplishment and satisfaction of the California Renewables Portfolio Standard objectives. 12. Prohibit the Water Authority from wheeling - or securing statutory, regulatory, or administrative authority necessary to wheel - acquired or produced power to itself, the District, or other entities with which the Water Authority is under contract for the purchase, treatment, transport, or production of water. 13. Result in a lengthy, more complicated, or more costly interconnection of energy loads and resources, such as solar, in-line-hydroelectric, pumped-energy storage, and other renewable energy generation or storage technologies to the electric distribution and transmission grid. VI.Financial Issues A.Fees, Taxes, and Charges Support initiatives that: 1.Require the federal government and the State of California to reimburse special districtsfor all mandated costs or regulatory actions. 2.Give special districts the discretion to cease performance of unfunded mandates. 3. Provide fiscal reform to enhance the equity, reliability, and certainty of special districtfunding.4. Provide incentives for local agencies to work cooperatively, share costs, or resources.5. Provide for the stable, equitable, and reliable allocation of property taxes. 6. Continue to reform workers’ compensation. 7. Promote competition in insurance underwriting for public agencies.8. Produce tangible results, such as water supply reliability or quality improvement.9. Require the Metropolitan Water District of Southern California (MWD) to refund or creditto its member agencies revenues collected from them that result in reserves greater than the maximum reserve levels established pursuant to state legislation. Oppose initiatives that: 1. Impose mandated costs or regulatory constraints on local agencies and their customerswithout providing subventions to reimburse local agencies for such costs. 2.Pre-empt the District or local water agencies’ ability to impose or change rates, charges, fees, or assessments.3. Weaken the protections afforded by the District, the Water Authority, or other local wateragencies and their ratepayers under California’s Proposition 1A (November 2, 2004) orProposition 26 (November 2010). 4.Reallocate special districts’ reserves to balance the state budget. 5. Reallocate special district revenues or reserves to fund infrastructure improvements orother activities in cities or counties.6. Establish funding mechanisms that put undue burdens on local agencies or make localagencies de facto tax collectors for the state. Otay Water District Legislative Program 8 | Page 7. Adversely affect the cost of gas and electricity or reduce an organization’s flexibility totake advantage of low peak cost periods.8. Add new reporting criteria, burdensome, unnecessary, or costly reporting mandates toUrban Water Management Plans. 9. Add new mandates to the Department of Water Resources (DWR) to review and approveUrban Water Management Plans beyond those already addressed in DWR guidelines.10.Mandate that water agencies include an embedded energy calculation for their watersupply sources in Urban Water Management Plans or any other water resources planningor master-planning document. 11. Weaken existing project retention and withholding provisions that limit the ability ofpublic agencies to drive contractor performance.12. Establish change order requirements that place an unreasonable burden on local agenciesor raise financial risk associated with public works contracts.13.Impair the Water Authority or its member agencies’ ability to provide reasonable service at reasonable costs to member agencies or to charge all member agencies the same rate foreach class of service consistent with cost-of-service requirements of the law.14.Impair the local water agencies’ ability to maintain reasonable reserve funds and obtainand retain reasonable rates of return on their reserve accounts.15.Mandate a specific rate structure for retail water agencies. 16.Impose a water user fee on water agencies or water users that does not provide acommensurate and directly linked benefit in the local area or region from which the wateruser fee is collected.17.Impose a water user fee for statewide projects or programs, for which the projects orprograms are not clearly defined, the beneficiaries identified, and reasonable costs identified.18.Impose a water user fee to create a state fund that can be used to finance undefined futureprojects and programs.19.Allow the state to retain more than 5% of water user fees for administrative costs.20. Do not restrict the use of water user fees to only the specific purposes for which they are imposed, without any possibility of diversion to meet other fiscal needs of the state orwater users outside of the Water Authority’s service area.21.Impose a “public goods charge” or “water tax” on public water agencies or theirratepayers.22.Impose a fee on water users to repay the principal and interest on a statewide general obligation bond.23. Establish regulatory or permit fees that lack a nexus to the costs of oversight.24. Establish a broad-based user fee that does not support a specific program activity; any feemust provide a clear nexus to the benefit the fee would provide. B.Funding Support initiatives that: 1. Require the federal and state governments to provide subvention to reimburse localgovernments for all mandated costs or regulatory actions. 2. Provide the District, the Water Authority, and other local water agencies with additional forms of cost-effective financing for public facilities. Otay Water District Legislative Program 9 | Page 3. Revitalize the Title XVI federal funding program by converting new authorizations to a competitive grant program with congressional oversight while protecting existing Title XVI authorizations for the San Diego region. 4. Provide the District, Water Authority, and local water agencies with grant funding for public facilities, including developing local water resources and rehabilitation and repair of aging infrastructure, such as dams and pipelines. 5.Provide the District, other local water agencies, and water ratepayers with post-COVID-19 financial relief through a variety of means, including but not limited to direct financial assistance and flexibility in debt management to assist water ratepayers and water suppliers. 6. Authorize financing of water quality, water security, and water supply infrastructure improvement programs. 7. Establish spending caps on the State of California overhead when administering voter- approved grant and disbursement programs. 8. Require disbursement decisions in a manner appropriate to the service in question. 9. Encourage funding infrastructure programs that are currently in place and that have been proven effective. 10. Provide financial incentives for energy projects that increase reliability, diversity, andreduce greenhouse gases.11. Continue energy rate incentives for the utilization of electricity during low-peak periods. 12. Provide loan or grant programs that encourage water conservation for water users who areleast able to pay for capital projects.13. Provide for population-based distribution of IRWM funds to ensure adequate distributionof grant funding to the San Diego region.14. Provide for the use of state grant funds for binational projects where the projects benefit water supply or water quality in the San Diego region.15. Improve and streamline the state’s reimbursement process of IRWM funds.16. Promote the ability of the Regional Water Management Group to administer state grantfunds specifically identified more directly for IRWM Programs.17. Require the state to rely on the local process for selection and ranking of projects included in an approved IRWM plan.18. Increase collaboration between stakeholders within the IRWM regions when funding andselecting projects.19. Provide additional resources and assistance to address unique administrative andimplementation challenges associated with underrepresented communities. 20. Advocate for state bonds that provide grant funding for the San Diego County IRWMProgram.21. Provide funding or other incentives for conservation, peak management programs, waterrecycling, potable reuse, groundwater recovery and recharge, dam repair andrehabilitation, surface water development and management projects, including reservoir management, source water protection, and watershed planning studies and facilities thatsustain long-term, reliable water resources.22. Provide financial incentives to assist in the disposal of concentrate, sludge, and otherbyproducts created in the water treatment process. Otay Water District Legislative Program 10 | Page 23. Authorize, promote, and provide incentives or credits for development of local drought-resilient water supply projects such as desalination, non-potable recycling, and potablereuse projects.24. Provide funding for potable reuse demonstration projects and studies. 25. Provide funding for infrastructure improvements at desalination facilities with eligibilityfor public and private partnerships.26. Authorize federal and state funding to develop and implement regional or subregionalconservation programs, including but not limited to property acquisition, revegetationprograms, and watershed plans. 27. Provide state and/or federal funding for the restoration of the Salton Sea.28. Provide federal and/or state funding to implement actions that address the ecological andwater supply management issues of the Lower Colorado River from Lee's Ferry to thesoutherly international border with Mexico.29. Provide federal and/or state funding to implement actions that address the ecological and water supply management issues of the Sacramento-San Joaquin River Delta.30. Permit the use of grant funding for projects implemented under public-private partnershipswhere the grant provides funding for a public benefit.31. Require the state agencies responsible for preparing the IRWM grant program guidelinesto conduct a comprehensive public outreach process that ensures stakeholders have an opportunity to provide adequate input on the preparation of the guidelines and require thatstate agencies consider and respond to comments received through the outreach process.32. Provide incentive, funding, and assistance to water agencies so that they can comply withAB 32 (2006) requirements, and updated statutory requirements imposed pursuant to SB32 (2016), SB 100 (2018), and SB 1020 (2022). 33. Remove funding caps from state and federal grant and loan funding sources.34.Streamline federal and state grant reimbursement processes. Oppose initiatives that: 1.Impose additional administrative requirements and/or restrict the District’s, Water Authority’s, or other local water agencies’ ability to finance public facilities through theissuance of long-term debt.2. Interfere with the responsibility of a region, operating under an Integrated Regional WaterManagement Plan, for setting priorities and generating projects to be paid from anyIRWM accounts and grants. 3. Interfere with the control exercised by the San Diego funding subregion over the use andexpenditure of any water-user fee revenues that may be dedicated to the region.4.Establish IRWM funding criteria that limit local discretion in project selection.5.Provide for after-the-fact reduction in quantity or quality of a public water supply due tonew restrictions on the operation or use of water supply facilities unless funding for alternate sources of water is provided.6. Impose a "utility user fee" or "surcharge" on water for the purposes of financing openspace/habitat preservation, restoration, or creation. Otay Water District Legislative Program 11 | Page C.Rates Support initiatives that: 1.Maintain the authority and requirements of water agencies to establish water rates,consistent with the cost-of-service requirements of the law. 2.Maximize the ability of water agencies to design rate structures to meet local water supply goals and that conform to the cost-of-service requirements of the law.3. Encourage and promote education to elected officials, community/business leaders,organizations, and the public about water sales and conservation, and the District and itswholesaler’s rates and what those rates support, including but not limited to infrastructure, asset management, operations, maintenance, water reliability, and more. Oppose initiatives that: 1.Impair the District’s, the Water Authority’s, or local water agencies’ ability to providereliable service at reasonable costs to member agencies or to charge all member agencies the same or similar rate for each class of service consistent with cost-of-service requirements of the law.2.Undermine or weaken cost-of-service rate-making requirements in existing law.3.Impair the District’s ability to maintain reasonable reserve funds and obtain and retainreasonable rates of return on its reserve accounts. 4.Mandate a specific rate structure for retail water agencies. 5.Prescribe mandatory conservation-based rate structures that override the authority of theboards of directors of local water agencies to set rate structures according to the specificneeds of the water agencies in accordance with cost-of-service requirements. 6.Usurp special district funds, reserves, or other state actions that force special districts to raise rates, fees, or charges. D.Water Bonds Support initiatives that: 1. Provide an equitable share of funding to San Diego County, with major funding categoriesbeing divided by county and funded on a per-capita basis to ensure bond proceeds aredistributed throughout the state in proportion to taxpayers’ payments on the bonds.2. Focus on statewide priorities, including restoration of fish and wildlife habitat, promotion of greater regional and local self-sufficiency, surface storage, and promotion of water-use efficiency.3. Ensure funding from various propositions for local and regional water-related projects.4. Include within IRWM funding money that a region may use over time to develop andrefine its plan and to develop institutional structures necessary to establish and implement the plan. 5.Give primary consideration to funding priorities established by local and regional entitiesthrough their IRWM planning process.6. Ensure the application process for funding is not unnecessarily burdensome and costly,with an emphasis on streamlining the process. 7.Limit state overhead to no more than 5% of bond funding amounts. Otay Water District Legislative Program 12 | Page 8. Place as much emphasis and provide at least as much funding for surface storage as for groundwater storage. 9. Define the “San Diego sub-region” and “San Diego county watersheds” as “those portions of the westward-flowing watershed of the South Coast hydrologic region situated within the boundaries of San Diego County.” 10. Fund emergency and carryover storage projects. 11. Consolidate administration of all voter-approved water-related bond funding in one place, preserve existing expertise within the state bureaucracy to manage bond-funding processes, and provide consistent application and evaluation of bond-funding applications. 12. Provide the state’s share of funding for projects that advance the achievement of the co-equal goals of water supply reliability and Bay-Delta ecosystem restoration. 13. Provide funding for water infrastructure that resolves conflicts in the state’s water system and provides long-term benefits to statewide issues, including water supply, reliability, water quality, and ecosystem restoration. Oppose initiatives that: 1. Do not provide an equitable share of funding to San Diego County based on the San Diego County taxpayers’ proportional contribution to repayment of the bonds. 2. Do not provide funding for infrastructure that resolves statewide or regional conflicts of water supplies. 3. Do not provide funding that results in net increases in real water supply and water supply reliability. 4. Commit a significant portion of bond funding to projects that do not result in net increases in real water supply or water supply reliability. E. Affordability Support initiatives that: 1. Abide by the Human Right to Water (AB 685, 2012) as set forth in Section 106.3 of the California Water Code, which reads that, “every human being has the right to safe, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes.” The State Water Resources Control Board also has a resolution supporting this program. 2. Meet the required standards under Proposition 218 and Proposition 26 in the California Constitution regarding proportionality of water rates and cost-of-service provisions. 3. Rely on data-driven analysis of water affordability, including considerations such as census data and economically disadvantaged communities. As such, the District supports the continued implementation of AB 2334 (2012), which requires the Department of Water Resources to provide this analysis and place it in California’s Water Plan. 4. Support the creation of a low-income water rate assistance program that targets providing financial assistance to low-income ratepayers using federal or existing resources within either the state General Fund, grants, or cap-and-trade dollars. 5. Does not burden water districts with overly prescriptive mandates, including the collection of water taxes or water rate and boundary data, and qualification of customers for low-income assistance programs. 6. Support the expansion of the low-income assistance programs (LIHWAP) or other programs, using existing resources from the federal government, with the state General Fund, cap-and-trade dollars, or other state financial resources. Otay Water District Legislative Program 13 | Page 7.Provide the Water Authority, its member agencies, and water ratepayers with a permanentlow-income customer assistance program.8. Encourage and promote education to elected officials, community/business leaders,organizations, and the public about affordability. Oppose initiatives that: 1.Does not target appropriately: Any low-income water rate assistance program must belimited in scope to those individuals. By seeking to do too much, effectiveness could belimited. Examples of this could include extending program resources to domestic wells or water-use efficiency programs.2. Does not have a funding source: Any low-income water rate assistance program needs toidentify specific sources of sustainable funding and does not include a water tax or watersurcharge.3. Does not reinvent the wheel: Any low-income water rate assistance program should be built upon and use the resources of an existing benefit distribution organization orsystem, such as CalFresh, rather than requiring water agencies to add the operatingexpense of creating and administering a new method. VII.Governance and Local Autonomy Support initiatives that:1. Expand local autonomy in governing special district affairs.2. Promote comprehensive long-range planning.3.Assist local agencies in the logical and efficient extension of services and facilities to promote efficiency and avoid duplication of services.4.Streamline the Municipal Service Review Process or set limits on how long servicereviews can take or cost.5.Reaffirm the existing “all-in” financial structure or protect the Water Authority votingstructure based on population. 6.Promote measures that increase broader community and water industryrepresentation/appointments on State decision-making bodies.7. Ensure an open and transparent process for the adoption of regulations, policies, andguidelines.8.Preserve the District and other local water agencies’ ability to establish local priorities for water resources planning decisions.9. Promote cost-effective and reasonably feasible requirements. Oppose initiatives that: 1.Assume the state legislature is better able to make local decisions that affect special district governance.2.Create one-size-fits-all approaches to special district reform.3.Unfairly target one group of local elected officials.4. Usurp local control from special districts regarding decisions involving local specialdistrict finance, operations, or governance. 5. Diminish the power or rights of the District’s governing body to govern the District’saffairs.6.Diminish the power or rights of the District to govern relations with its employees. Otay Water District Legislative Program 14 | Page 7. Modify the committee or board voting structure or District and member agency boardrepresentation on the Water Authority Board of Directors unless the District’s Board hasexpressly authorized such changes.8. Create unfunded local government mandates. 9.Create costly, unnecessary, or duplicative oversight roles for the state government ofspecial district affairs.10. Create new oversight roles or responsibilities for monitoring special district affairs.11. Change the San Diego County Water Authority Act regarding voting structure unless it isbased on population. 12.Shift the liability to the public entity and relieve private entities of reasonable duediligence in their review of plans and specifications for errors, omissions, and other issues.13. Place a significant and unreasonable burden on public agencies, resulting in increased costfor public works construction or their operation.14. Impair the ability of water districts to acquire property or property interests required for essential capital improvement projects.15. Increase the cost of property and right-of-way acquisition or restrict the use of rights-of-way.16. Work to silence the voices of special districts and other local government associations onstatewide ballot measures impacting local government policies and practices, including actions that could prohibit special districts and associations from advocating for positionson ballot measures by severely restricting the private resources used to fund thoseactivities.17.Prescribe mandatory conservation-based or other rate structures that override the authorityof the board of directors to set its rate structure. 18.Circumvent the legislative committee process, such as the use of budget trailer bills, toadvance policy issues, including impacting special districts without full disclosure,transparency, or public involvement.19.Restrict the District’s ability to utilize a demand forecasting methodology that is bestsuited locally and for the region. 20.Impose mandates requiring specific water resources to be developed by water agenciesthat fail to consider local factors such as water reliability, hydrologic and geographiccharacteristics, and the economic, political, public acceptance, and social environment,which can influence the selection of resources and/or fails to consider or conflict withexisting local and regional planning policies and implementation priorities. 21.Limit the District’s ability to establish local priorities for water resources planningdecisions.22. Impede the District’s ability to conduct its critical mission efficiently and effectively, ofalways providing and sustaining critical services, and under all conditions.23. Impose regulations that place unreasonable, inequitable, and costly requirements on local agencies without adequate support and resources. Otay Water District Legislative Program 15 | Page VIII.Imported WaterA.Bay-Deltai.Co-Equal Goals Support initiatives that: 1. Require the Delta Stewardship Council or DWR to provide periodic analyses of the cost of theproposed Bay-Delta improvements to the Legislature and the public.2.Provide conveyance and storage facilities that are cost-effective for the San Diego region’sratepayers and are proportionate to the benefits they receive, improve the reliability and quality of the San Diego region’s water supplies, and protect the Bay-Delta’s ecosystem.3. Continue to support the coequal goals of water supply reliability and environmentalrestoration embodied in the 2009 Delta bill package.4.Improve the ability of water-users to divert water from the Bay-Delta during wet periods,when impacts on fish and the ecosystem are lower, and water quality is higher. 5.Encourage the development of a statewide water transfer market to improve watermanagement and allow more efficient use of available resources.6. Support improved coordination of Central Valley Project and State Water Project (SWP)operations and implementation of water quality requirements that are fair to the users of bothprojects and do not unfairly shift costs to SWP contractors, MWD, or its member agencies. 7. Support administrative/legislative actions and funding to advance the Delta FreshwaterPathway, levee improvements, including levee modernization for the existing Delta leveesystem, levee maintenance programs, including real-time monitoring for the existing Deltalevee system, and secure Delta flood-fighting materials and stockpiles.8. Support state and federal administrative/legislative actions and funding to address the impacts of subsidence on the SWP and prevent future damage caused by unsustainable groundwaterpumping.9. Support continued state ownership and operation of the SWP, including project facilities, as apublic resource.10. Ensure that any reorganization of the State Water Project, including operations and management, preserves the ability for non-State Water Project contractors to access thefacility for transportation of water to a non-State Water Project contractor.11. Authorize and appropriate the federal share of funding for the long-term Bay-Delta solution,including for California EcoRestore.12. Provide the ongoing state share of funding for California EcoRestore. 13. Provide state funding for water quality monitoring in the Bay-Delta. Such legislation shouldnot place a surcharge on water supply exports, nor should it substantively reduce funding forother measures that protect the environment and public health. Oppose efforts that: 1. Impose water user fees to fund ecosystem restoration and other public purposes, non-water-supply improvements in the Bay-Delta that benefit the public at large.2.Transfer operational control of the State Water Project or any of its facilities to theMetropolitan Water District of Southern California (MWD), the State Water Contractors, theCentral Valley Project Contractors, the State and Federal Contractors Water Agency, or any entity comprised of MWD or other water project contractors, or any other special interestgroup. Otay Water District Legislative Program 16 | Page ii.Bay-Delta Conveyance Project Support initiatives that: 1.Are consistent with the Water Authority’s Board of Directors’ July 25, 2019, adopted Bay- Delta project policy principles, including the following:a.On April 29, 2019, Governor Newsom signed Executive Order N-10-19, directing thepreparation of a water resilience portfolio approach that meets the needs ofCalifornia’s communities, economy, and environment through the 21st century,including consideration of multi-benefit approaches that meet multiple needs at once, and a single-user tunnel Bay-Delta project.b. The Water Authority’s Board supports Governor Newsome’s Executive Order N-10-19 and directs staff to inform the Newsome Administration that its support for asingle-tunnel Bay-Delta project is expressly conditioned upon the project costs beingcharacterized by the Department of Water Resources (DWR) as conservation, or supply charges, as similar facilities historically have been defined in the MetropolitanWater District’s (MWD) SWP contract with DWR.c.As reflected in Table 2 of DWR’s Appendix B to Bulletin 132-17, Data andComputation Used to Determine Water Charges, and for which costs are recovered inArticle 22(a) of Delta Water Charge of MWD’s SWP Contract; allow for the exemption of north-of-Delta SWP contractors.2. Support the establishment of an independent and transparent oversight function to monitorand provide regular updates on project implementation progress, including expendituretracking, construction progress, project participants’ contributions, and all other relevantactivities and developments. 3.Allow access to all SWP facilities, including project facilities, to facilitate water transfers. B.Metropolitan Water District Support initiatives that: 1. Provide an appropriate level of transparency in rate setting, accountability, and cost controlover MWD spending.2.Protect and acknowledge the investments the Water Authority has made in the form of itspreferential rights under the Metropolitan Water District Act and allow member agencies torealize the value of their respective and varied investments. 3. Require MWD to refund or credit to its member agencies revenues collected from them thatresult in reserves greater than the maximum reserve levels in the manner established pursuantto state legislation.4.Require MWD to implement actions that advance and support its long-term financial stability,fiscal sustainability, and moderate fluctuations in rates and charges for its member agencies from year to year, in a publicly transparent manner.5. Amend the Metropolitan Water District Act to change voting allocation on its Board ofDirectors based on a member agency’s total financial contribution to MWD, in a manner thatis fair and equal to ratepayers, and similar to the voting allocation method of the CountyWater Authority Act. 6. Ensure fair and equitable cost allocation of projects and programs based on the varying needs and demands of its member agencies. Otay Water District Legislative Program 17 | Page C.Colorado River Support initiatives that: 1. Support federal funding through the Inflation Reduction Act and Bipartisan InfrastructureLaw to fund near-term and long-term conservation projects that protect California’s waterrights and the San Diego region’s river supplies while bolstering the river.2. Support the sustainability of the Colorado River and provide operational flexibility through the development of storage, including in Lake Mead, and through the renegotiation of the newinterim shortage guidelines for the river’s continued operation.3.Advance strategic long-term water management that includes the ability to transfer, share, andexchange supplies both within the state of California and across state lines.4.Incorporate seawater desalination as part of a slate of long-term infrastructure projects to support the Colorado River.5. Recognize the 2003 Quantification Settlement Agreement (QSA) as a model for other Basinstates to follow as a means to implement conservation while protecting agriculture and theenvironment.6. Support implementation and funding of the California Colorado River Water Use Plan, including the Lower Colorado River Multi-Species Conservation Program7. Provide funding for Colorado River salinity control projects and other water qualitymanagement efforts.8. Provide for state and federal authorizations and appropriations of non-fee-based funds toimplement Salton Sea mitigation and the State’s phased approach to restoration in the form of the Salton Sea Management Program consistent with its obligations under Chapters 611, 612,and 613 of the Statutes of 2003.9.Limit the QSA mitigation costs imposed on funding parties to the amount committed inaccordance with the original QSA legislation.10. Allow for the option to create an alternate conveyance route, when technically and financially feasible, for reliable delivery of the Water Authority’s Independent Colorado River watersupplies and integration of compatible partnership projects along the proposed conveyanceroutes as a model of the Governor’s Water Resilience Portfolio approach to watermanagement.11. Support the state’s Salton Sea Management Program under the guidelines of the revised Water Order (Stipulated Order) adopted by the State Water Resources Control Board inNovember 2017.12. Preserve the California Colorado River Board13. Ensure the interests of the members of the California Colorado River Board continue to beaddressed in any state government reorganization. 14. Allow for storage of the Water Authority’s Colorado River water supplies to provideenhanced flexibility with annual transfer volumes, support drought contingency planning, andalign with the Governor’s Water Resilience Portfolio approach to water management. Oppose initiatives that: 1. Impose additional mitigation costs or obligations for the Salton Sea on the non-state parties tothe QSA. Otay Water District Legislative Program 18 | Page 2. Eliminate the California Colorado River Board without providing a comparable structure orforum that ensures the Water Authority and member agencies’ interests in the Colorado Riverare preserved.3.Implement additional long-term conservation projects to address drought and climate change that do not address potential impacts on the environment, specifically the Salton Sea.4. As part of the development of the next set of river management guidelines, impose potentialfuture reductions on just the Lower Basin rather than balancing potential reductions betweenboth the Upper and Lower Basins. D.State Water Project Support initiatives that: 1. Provide for development of a comprehensive state water plan that balances California's competing water needs, incorporates the water resources and infrastructure concepts includedin the Governor’s “Water Resilience Portfolio” and “California’s Water Supply StrategyAdapting to a Hotter, Drier, Future,” and results in a reliable and affordable supply of high-quality water for the State of California and the San Diego region. Oppose initiatives that: 1. Make urban water supplies less reliable or substantially increase the cost of imported waterwithout also improving the reliability and/or quality of the water.2. Revise the Central Valley Project Improvement Act to Jeopardize the Act's environmentalintegrity, compromise State Water Project supply reliability, and/or limit the ability of urban agencies to transfer and/or bank CVP water for use both within and outside the CVP servicearea. 3.Transfer operational control of the State Water Project or any of its facilities to MWD, the State Water Project contractors, Central Valley Project contractors, the State and Federal Contractors Water Agency, any entity comprised of MWD or other water project contractors, or any other special interest group. IX.Optimize District Effectiveness Support initiatives that: 1. Manage District resources in a transparent and fiscally responsible manner.2.Allow utilities to avoid critical peak energy pricing or negotiate energy contracts that save ratepayers money. 3. Develop reasonable Air Pollution Control District engine permitting requirements.4. Reimburse or reduce local government mandates.5. Allow public agencies to continue offering defined benefit plans.6. Result in predictable costs and benefits for employees and taxpayers. 7.Eliminate abuses. 8. Retain local control of pension systems.9.Are constitutional, federally legal, and technically possible.10. Promote cost-effective and reasonably feasible requirements. Otay Water District Legislative Program 19 | Page Oppose initiatives that: 1. Restrict the use of, or reallocate, district property tax revenues to the detriment of specialdistricts.2.Create an unrealistic ergonomic protocol. 3.Micromanage special district operations.4.Balance the state budget by allowing regulatory agencies to increase permitting fees.5.Tax-dependent benefits.6. Require new reporting criteria on the energy intensity involved in water supply. X.Safety, Security, and Information Technology Support initiatives that: 1. Provide funding for information security upgrades to include integrated alarms, access/egress,and surveillance technology. 2. Provide incentives for utilities and other local agencies to work cooperatively, share costs orresources.3. Provide funding for communication enhancements, wireless communications, GIS, or othertechnological enhancements.4. Encourage or promote compatible software systems. 5. Fund infrastructure and facility security improvements that include facility roadway access,remote gate access, and physical security upgrades.6.Protect state, local, and regional drinking water systems from terrorist attack or deliberate actsof destruction, contamination, or degradation.7. Provide funds to support training or joint training exercises to include contingency funding for emergencies and emergency preparedness.8. Equitably allocate security funding based on need, threats, and/or population.9. Encourage or promote compatible communication systems.10. Encourage and promote funding of the Department of Homeland Security Risk Mitigationprograms. 11.Recognizes water agencies as emergency responders in the event of a sudden, unexpectedoccurrence that poses a clear and imminent danger, requiring immediate action to prevent andmitigate loss or impairment of life, health, property, or essential public services due to naturaldisasters (e.g., wildfires, earthquakes), power outages, as well as terrorist and other criminalactivities. 12.Provide state grants or other funding opportunities to support seismic risk assessment andmitigation plans, or to mitigate vulnerabilities.13. Provide funding for projects that enhance security against terrorist acts or other criminalthreats to water operation, services, facilities, or supplies.14. Provide funding for projects that improve the security of the District facilities and operations. 15. Provide funding to support technologies that support remote working, when necessary toprevent loss of or damage to life, health, property, or essential public services. Oppose initiatives that: 1. Create unnecessary, costly, or duplicative security or safety mandates. 2. Require expanded water system descriptions or additional public disclosure of public watersystems details for large water suppliers in Urban Water Management Planning documents,potentially compromising public water systems, and creating a conflict with the Department Otay Water District Legislative Program 20 | Page of Homeland Security’s recommendation to avoid reference to water system details in plans available to the public. XI.Water Quality Support initiatives that: 1.Assure cost-effective remediation and cleanup of contaminants of concern that have impactedgroundwater and surface water.2. Incorporate sound scientific principles in adopting drinking water standards for drinking water concerns.3. Exempt the conveyance, storage, or release of water supplies from regulation as a dischargeunder the Clean Water Act and other water quality control laws.4.Revise NPDES standards and procedures to facilitate inland discharge and the use of recycledwater. 5. Establish appropriate quality standards, testing procedures, and treatment processes foremerging contaminants.6.Alter the definition of “lead free” to reduce the permissible amount of lead in fixtures,plumbing, and pipe fittings to be installed for the delivery of drinking water.7.Exempt purified wastewater from regulation as a discharge under the Clean Water Act. 8. Implement source control for the management and prevention of contamination byconstituents of emerging concern.9. Provide the necessary funding for research on the occurrence, treatment, health effects, andenvironmental cleanup related to contamination of drinking water sources.10. Implement and fund the San Diego Regional Water Quality Control Board’s triennial review of water quality standards.11. Provide funding and support for Colorado River salinity control projects and other waterquality management efforts.12.Direct the state’s participation or assistance in water quality issues related to or threateningthe Colorado River water source. 13.Streamline permitting of facilities constructed to improve water quality.14. Ensure consistent application of the law by the State Water Resources Control Board and thenine regional water quality control boards. Oppose initiatives that: 1. Eliminate the State Water Resources Control Board and/or the nine regional water qualitycontrol boards without ensuring the functions and expertise of the boards are maintained inany reorganized entity.2. Regulate the conveyance, storage, or release of water supplies as discharge under the CleanWater Act and other water quality control laws. 3. Make water suppliers financially and legally responsible for the mitigation of pollutioncontamination by third parties.4. Make water suppliers financially and legally responsible for testing or correcting any waterquality-related issues associated with private property or on-site plumbing systems. Otay Water District Legislative Program 21 | Page XII.Water Recycling and Potable Reuse Support initiatives that: 1. Reduce restrictions on recycled water usage or promote consistent regulation of recycled water projects to reduce impediments to the increased use of recycled water.2.Reduce restrictions on injecting recycled water into basins where there is no direct potableuse.3. Advocate for direct potable reuse.4. Advocate for recycled water use upstream of lakes and reservoirs if protected by urban water runoff protection systems.5. Provide financial incentives for recharge of groundwater aquifers using recycled water.6.Make recycled water regulations clear, consolidated, and understandable to expedite relatedproject permitting.7.Promote recycled water as a sustainable supplemental source of water. 8.Allow the safe use of recycled water.9.Facilitate the development of technology aimed at improving water recycling.10.Increase funding for water recycling projects.11. Support continued funding of the Title XVI Water Reclamation and Reuse Program, includingWater Reclamation and Reuse Projects, the WaterSMART Program, and the Desalination and Water Purification Research Program.12.Increase awareness of the ways recycled water can help address the region’s water supplychallenges.13.Create federal and state incentives to promote recycled water use and production.14. Establish federal tax incentives to support U.S. companies in the development of new water technologies that can lower production costs, address byproducts such as concentrates, andenhance public acceptance of recycled water.15. Establish a comprehensive national research and development, and technology demonstration,program to advance the public and scientific understanding of water recycling technologies toencourage reuse as an alternative source of water supply. 16. Provide incentives for local agencies to work cooperatively, share costs or resources topromote or expand the use of recycled water.17. Further refine emergency regulations to reward local suppliers that have invested in usingrecycled water for landscape irrigation to maintain an incentive to continue expanding areasserved by recycled water. 18. Encourage the use of recycled water in commercial, industrial, institutional, and residentialsettings.19. Recognize and support the development of potable reuse as a critical new water supply.20. Define purified recycled water as a source of water supply and not as waste.21.Mandate the reduction of wastewater discharges to the ocean, absent inclusion of funding to offset the significantly high costs of implementation.22.Authorize local governmental agencies to regulate the discharge of contaminants to the sewercollection system that may adversely affect water recycling and reuse.23.Authorize and facilitate expanded use of local water resources, including water recycling,potable reuse, graywater, and rainwater harvesting (e.g., cisterns and rain barrels), and brackish groundwater.24. Streamline regulatory processes and requirements to encourage and support the developmentof potable reuse and non-potable reuse as a municipal water supply. Otay Water District Legislative Program 22 | Page 25.Recognize that the entire interconnected urban water cycle, as well as public health andsafety, must be taken into consideration in long-term water use efficiency policies,particularly including the unintended consequences of declining flows on water, wastewater,potable reuse, and recycled water systems. 26. Encourage dual plumbing in new development where non-potable recycled water is likely tobe available to enable utilization of recycled water.27. Promote uniform regulatory interpretation of state recycled water system standards.28.Support beneficial revisions to the California Plumbing Code that facilitate recycled watersystems. Oppose initiatives that: 1.Restrict use of recycled water for groundwater recharge.2.Establish new water or recycled water fees solely to recover State costs without alsoproviding some benefit. 3.Limit the ability of local governmental agencies to regulate the discharge of contaminants tothe sewer collection system that may adversely affect water recycling and reuse.4. Establish unreasonable regulatory requirements or fees for the safe use of recycled water,which may unreasonably impede or create a disincentive for its further development.5.Mandate the reduction of wastewater discharges to the ocean, absent inclusion of funding to offset the significantly high costs of implementation.6.Establish water use efficiency standards, which do not reflect the impact that higher TDSrecycled water has on the usage rates to reduce salt loading in areas of use. XIII. Water Rights Modernization Support initiatives that: 1.Protect existing water rights, water-rights priority, and local agencies’ ability to use waterresources for their present and future water supply reliability and environmental well-being.2. Support funding for data modernization tools needed to monitor and enforce water rights priorities and protect State Water Project supplies, including funding and technical assistanceto fully implement existing laws requiring metering of diversions and potential legislation orregulation aimed at providing real-time water diversion data.3. Support voluntary water transfers and exchanges as the means to reallocate water supplies,including for the environment, to meet water supply reliability goals and achieve co-equal goals of the Bay-Delta and interstate solutions to limited Colorado River supplies.4. Support more flexible regulations to enhance the ability to divert water in times of high stormrunoff and snow melt while protecting existing water rights and the environment.5. Support increases in civil penalties to deter violations of State Board orders, includingcurtailment orders. Otay Water District Legislative Program 23 | Page XIV.Water Services and Facilities Support initiatives that: 1. Provide funding to implement actions identified in the California Water Action Plan to lay a solid fiscal foundation for implementing near-term actions, including funding for waterefficiency projects, wetland and watershed restoration, groundwater programs, conservation,flood control, and integrated water management, and result in a reliable supply of high-qualitywater for the San Diego region.2. Promote the coordination and integration of local, state, and federal climate change policies and practices to the greatest extent feasible.3.Fund or otherwise facilitate ongoing implementation of the Quantification SettlementAgreement.4. Provide reliable water supplies to meet California’s short and long-term needs.5. Promote desalination pilot studies and projects. 6.Encourage feasibility studies of water resource initiatives.7. Increase funding for infrastructure and grant programs for construction, modernization, orexpansion of water, wastewater treatment, reclamation facilities, and sewer systems, includingwater recycling, groundwater recovery and recharge, surface water development projects, andseawater desalination. 8.Fund enhancements to water treatment, recycling, and other facilities to meet increasedregulations.9. Mandate uniform or similar regulations and procedures by state agencies in the processingand administering of grants and programs.10. Streamline grant application procedures. 11. Reduce regulations and other impediments for willing sellers and buyers to engage in watertransfer agreements.12. Promote or assist voluntary water transfers between willing buyers and willing sellers andmove those transactions through without delay.13. Streamline the permitting and approval process for desalination and other water-related facilities and implement water transfers that will improve water management.14.Establish reasonable statewide approaches to sewer reporting standards.15.Generate greater efficiency, better coordinate program delivery, and eliminate duplication inprograms for source water protection without lessening the focus on public health of thestate’s Drinking Water Program. 16.Target efforts to fix specific issues with water supplies within the state’s Drinking WaterProgram.17. Establish federal tax incentives to support U.S. companies in the development of newdesalination technologies that can lower production costs, eliminate or reduce impingement orentrainment, reduce energy use, and enhance public acceptance of desalinated water. 18. Establish a comprehensive national research and development, and technology demonstrationprogram to advance the scientific understanding of desalination to expand its use as analternative source of water supply.19. Require the State Water Resources Control Board to exercise its authority, ensure robustfunding, and implement the Salton Sea mitigation and restoration plan, meet state obligations, and work with QSA stakeholders to find workable solutions to ensure the continuation of IIDwater transfers. Otay Water District Legislative Program 24 | Page 20. Support solutions to water supply issues that address common challenges, provide acomprehensive approach that is fair to all users, balance the needs of urban and ruralcommunities, and take into consideration the interests of all stakeholders as well as the impactto the environment. 21. Further refine emergency drought regulations to eliminate a cap on credits and adjustments soas not to impose undue burden, financial or otherwise, on communities that have alreadyinvested in water conservation, development of new water sources, storage, or lossprevention.22. Provide funding for water infrastructure development, infrastructure security, and rehabilitation and replacement projects that benefit ratepayers.23. Provide funding for habitat preservation programs that address impacts resulting from theconstruction or operation of water system facilities.24. Provide funding for projects that enhance security against terrorist acts or other criminalthreats to water operation, services, facilities, or supplies. 25.Provide incentives that encourage contractors to recycle or reduce waste associated with theconstruction of water facilities.26.Improve the local agencies’ efforts to maintain and protect their property, rights of way,easements, pipelines, and related facilities and minimize liability to local agencies and theDistrict. 27.Protect the local agencies’ properties from restrictions when surrounding properties areincorporated into preservation areas.28. Encourage the use of current and emerging technologies for monitoring and assessing thecondition of large-diameter pipelines.29. Encourage water suppliers to develop and execute asset management programs that include visual inspections, internal/external inspections, asset condition assessments, corrosionmitigation, and risk analysis in a manner that recognizes the individuality and uniqueness ofeach water supplier and its systems.30. Improve the District’s efforts to maintain and protect its property, rights of way, easements,pipelines, and related facilities and minimize liability to the District. 31.Protect the District, other agencies, and the Water Authority properties from restrictions whensurrounding properties are incorporated into preservation areas.32. Provide funding to water agencies for the voluntary retrofit of facilities for on-site generationof chlorine.33. Provide funding for water supplier asset management programs that involve active monitoring, repair, or replacement of physical assets and infrastructure, which includes pipes,valves, facilities, equipment, and other infrastructure.34. Provide for restrictions on price gouging during public safety power shutoff events and for atleast 72 hours following restoration of power.35. Provide that de-energization or public safety power shutoff events may be included as a condition constituting a state of emergency or local emergency.36. Provide a tax exemption for the sale of, or storage, use, or consumption of, backup electricalresources, which are purchased for exclusive use by a city, county, special district, or otherentity of local government during a de-energization or public safety power shutoff event.37.State that the use of alternative power sources (such as generators) by essential public services during de-energization or public safety power shutoff events shall not be limited by any stateor local regulations or rules. Otay Water District Legislative Program 25 | Page 38. Recognize the critical role the District, local agencies, and the Water Authority play as PublicSafety Partners in Public Safety Power Shutoff events and other natural or man-madedisasters. Further recognizes the importance of the agency’s ability to provide immediate andsustained response for extended periods of time. 39. Provide financial support to local projects designed to mitigate or adapt to potential negativeimpacts of climate change on water supply reliability.40. Investigate and provide financial support to projects designed to mitigate potential negativeimpacts of climate change on water supply reliability. Oppose initiatives that: 1.Restrict local control and discretion over water facilities, asset management, and facilityoperations.2.Make urban water supplies less reliable or substantially increase the cost of imported waterwithout also improving the reliability and/or quality of the water. 3. Create unrealistic or costly water testing or reporting protocols.4. Disproportionately apportion the cost of water.5. Create undo hurdles for seawater desalination projects.6. Create unreasonable or confusing sewer reporting standards.7.Create administrative or other barriers to sales between willing buyers and willing sellers that delay water transfers.8.Create a broad-based user fee that does not support a specific local program activity orbenefit; any fee must provide a clear nexus to the benefit local ratepayers or local watersupplies from the establishment that charges or fees would provide.9. Create unrealistic or costly to obtain water quality standards for potable water, recycled water, or storm water runoff.10. Change the focus of the state’s Drinking Water Program or weaken the parts of the programthat work well.11. Lessen the focus on public health of the state’s Drinking Water Program.12. Impose undue burden, financial or otherwise, on communities that have already invested in water conservation, development of new water sources, storage, or loss prevention.13. Impose additional mitigation costs or obligations for the Salton Sea on the non-state parties tothe Quantification Settlement Agreement.14.Impair the District and other local water agencies’ ability to provide and operate the necessaryfacilities for a safe, reliable, and operational flexible water system. 15. Limit local agencies’ sole jurisdiction over planning, design, routing, approval, construction,operation, or maintenance of water facilities.16. Restrict local agencies’ ability to respond swiftly and decisively to an emergency thatthreatens to disrupt water deliveries or restricts the draining of pipelines or other facilities inemergencies for repairs or preventive maintenance. 17.Authorize state and federal wildlife agencies to control, prevent, or eradicate invasive speciesin a way that excessively interferes with the operations of water supplies.18.Prohibit or in any way limit the ability of local agencies from making full beneficial use ofany water, wastewater, or recycling facility and resource investments.19. Prohibit the use of alternative contract procurement methods that can be utilized in the construction of water facilities.20. Shift the risks of indemnity for damages and defense of claims from contractors to theDistrict. Otay Water District Legislative Program 26 | Page 21.Impair local agencies’ efforts to acquire property or property interests required for essentialcapital improvement projects or acquisition of property to meet pipeline water drain-downneeds for existing facilities.22. Increase the cost of property and right-of-way acquisition. 23.Restrict the District’s use of public rights of way or increase the cost of using public rights ofway.24. Restrict the transfer of property acquired for purposes of environmental mitigation orenvironmental mitigation credits to other public or private entities for long-term management.25. Establish prescriptive leak loss control requirements for the operation, maintenance, and asset management of water conveyance and distribution systems, which fail to consider full life-cycle costing.26.Establish meter testing requirements for source water meters that fail to consider industrystandards and cost-effectiveness.27.Limit the discretion of the District from protecting the security and privacy of comprehensive inventories of all assets, which include infrastructure location, condition, performance, anduseful life.28. Impair local agencies’ ability to execute the planning, design, and construction of projectsusing their own employees.29. Limit the autonomy of discretion of water suppliers to develop and execute asset management inspection programs that include visual inspections, internal/external inspections, assetcondition assessments, and corrosion mitigation in a manner that recognizes the individualityand uniqueness of each water supplier and its systems.30. Authorize air quality management districts or other regulatory bodies to adopt or maintainrules that would limit or prohibit a local government entity’s use of a state and/or federally compliant natural gas-powered generator during a de-energization or public safety powershutoff event.31. Would inhibit the District from fulfilling its critical role as a Public Safety Partner and makingimmediate and sustained response in a Public Safety Power Shutoff event or other natural orman-made disasters, such as the CARB Advanced Clean Fleet regulation. 32. Would inhibit the District from fulfilling its critical role as an essential service provider fromprocuring and operating fleets, which meet the needs to perform routine and emergencymaintenance of water and wastewater systems, such as the CARB Advanced Clean Fleetregulation.33.Require the incorporation of climate change considerations into regional and local water management planning that does not provide flexibility to the local and regional water agencies in determining the climate change impact and identification of adaptation and mitigation measures. 34. Impose top-down “one-size-fits-all” climate change mandates that fail to account for hydrological, meteorological, economic, and social variation across the state and/or that fail to incorporate local and regional planning and implementation priorities and protocols. Otay Water District Legislative Program 27 | Page XV.Water Use and Efficiency Support initiatives that: 1. Provide funding for incentives for water-use efficiency and water conservation programs,including water-efficient devices, practices, and demonstration projects and studies.2.Encourage the installation of water-efficient fixtures in new and existing buildings.3. Promote the environmental benefits of water-use efficiency and water conservation.4.Enhance efforts to promote water-use efficiency awareness. 5.Offer incentives for landscape water-efficient devices, including, but not limited to ETcontrollers and soil moisture sensors.6. Develop landscape retrofit incentive programs and/or irrigation retrofit incentive programs.7. Permit or require local agencies to adopt ordinances that require or promote water-efficientlandscapes for commercial and residential developments. 8.Create tax incentives for citizens or developers who install water-efficient landscapes.9.Create tax incentives for citizens who purchase high-efficiency clothes washers, dual-flushand high-efficiency toilets, and irrigation controllers above the state standards.10. Expand community-based water-use efficiency and education programs.11.Facilitate and encourage the use of rainwater-capture systems, i.e., rain barrels, cisterns, etc., and alternative water sources, i.e., air conditioner condensate for use in irrigation.12. Develop incentives for developers and existing customers to install water-efficient landscapesin existing developments or new construction.13.Encourage large state users to save water by implementing water-efficient technologies in allfacilities, both new and retrofit. 14.Encourage large state water users to save water outdoors.15. Educate all Californians on the importance of water and the need to conserve, manage, andplan for future needs.16.Encourage technological research targeted to more efficient water use.17.Give local agencies maximum discretion in selecting water-use efficiency and conservation programs that work for their customers and the communities they serve.18.Require the Department of Water Resources to implement a uniform statewide turf rebatesubsidy or incentive program.19.Restrict Property Owner Associations from forbidding the use of California native plants,other low water use plants, mulch, artificial turf, or semi-permeable materials in well- maintained landscapes.20.Restrict Property Owner Associations from forbidding retrofits of multiple-unit facilities forthe purpose of submetering, if feasible.21. Ensure plumbing codes and standards that facilitate the installation and/or retrofit of water-efficient devices. 22. Establish standards for the utilization of high-efficiency commercial and residential clotheswashers.23.Provide federal tax-exempt status for water-use efficiency rebates, consistent with income taxtreatment at the state level.24. Encourage the use of graywater where it complies with local guidelines and regulations and is cost-effective.25. Provide incentives, funding, and assistance to water agencies so that they can meet the waterdemand management measure requirements in the Urban Water Management Planning Act. Otay Water District Legislative Program 28 | Page 26. Provide incentives, funding, and other assistance to facilitate water-use efficiencypartnerships with the energy efficiency sector.27. Provide incentives, funding, and other assistance where needed to facilitate markettransformation and gain wider implementation of water-efficient indoor and outdoor technologies and practices.28.Recognize local control in determining water use efficiency criteria, such as the impact ofrecycled water salinity on irrigation use and efficiency for the application of non-potablerecycled water.29. Encourage reasonable tracking of water use and improved efficiency in the Commercial, Industrial, and Institutional (CII) sector.30. Recognize local control in determining how to meet an overall efficient water use goal, basedon the combined efficient indoor use, outdoor use, and leak loss, as established under thecriteria provided for in statute.31.Ensure accurate and streamlined reporting of implementation of water-use efficiency and conservation measures.32.Promote statewide implementation of water-use efficiency best management practices anddemand management measures as defined in the Urban Water Management Planning Act. Oppose efforts that: 1.Weaken federal or state water-efficiency standards.2. Introduce additional analytical and reporting requirements that are time-consuming for localagencies to perform and result in additional costs to consumers, yet yield no water savings.3.Permit Property Owners Associations to restrict low water use plants, mulch, artificial turf, orsemi-permeable materials in landscaping. 4.Repeal cost-effective efficiency standards for water-using devices.5.Repeal cost-effective efficiency standards for water-using devices.6.Create stranded assets by establishing long-term demand management, water-use efficiency,and water supply requirements that are inconsistent with the Urban Water ManagementPlanning Act. 7.Prescribe statewide mandatory urban and agricultural water-use efficiency practices,including, but not limited to, methods, measures, programs, budget allocation, and designationof staff dedicated to water conservation programs, that override the authority of the boards ofdirectors of local water agencies to adopt management practices that are most appropriate forthe specific needs of their water agencies. 8. Mandate regulation of the CII Sector in a manner that is discriminatory, or sets unachievableBest Management Practices or compliance targets, or would otherwise impair economicactivity or the viability of the CII sector.9. Mandate that water agencies include an embedded energy calculation for their water supplysources in the Urban Water Management Plan or any other water resource planning or master planning document.10. Require redundant reporting of water conservation-related information. Otay Water District Legislative Program 29 | Page XVI.Workforce Development Support initiatives that: 1. Advocate for local, regional, and state programs that support a high-performing workforce and increase the talent pool for water agencies. 2.Advocate for military veterans in the water industry workforce to ensure that veterans receive appropriate and satisfactory credit towards water and wastewater treatment system certifications in California for work experience, education, and knowledge gained in military service. 3.Lower employment barriers for military veterans and transitioning military and that sustain vital water and wastewater services for the next generation. 4. Recruit and support veterans and transitioning military through internships, cooperative work experiences, and other resources. 5. Recruit and support underserved communities in the water industry through internships, cooperative work experiences, and other resources. 6.Advocate and encourage candidate outreach and recruitment in relation to mission-critical job categories in water and wastewater. 7. Ensure advanced water treatment operators and distribution system operators of potable reuse and recycled water facilities have a career advancement path as certified water and/or wastewater treatment plant operators. 8. Increase the number of educational institutions that provide water-industry related training and related program criteria, including but not limited to trades, certifications, and degrees. 9. Increase the talent pool of future water industry workers through educational programs, internships, and other resources. 10. Provide funding to educational institutions, water agencies, and workforce students regarding careers in the water industry. 11. Develop qualified candidates for positions in the water industry. 12. Build awareness of water industry-related jobs through student outreach, including but not limited to K-12, community colleges, universities, and other educational institutions, as well as outreach to the public. 13. Promote regional water and wastewater workforce development programs. Oppose initiatives that: 1. Hinder military veterans from using their previous experience, education, and knowledge toward a career in water. 2.Regulate agencies from hiring an experienced, educated, and talented water-industryworkforce. Brownstein's Anticipated 2026 Legislative and Regulatory Priorities for Otay WD_FINAL DRAFT.docx www.bhfs.com Brownstein Hyatt Farber Schreck, LLP 916.594.9700 main 1415 L Street, Suite 800 Sacramento, California 95814 Memorandum Summary The California legislature reconvened for the 2026 calendar year of the 2025-2026 legislative session on January 5, 2026. Senator Monique Limon (D, Santa Barbara) was elected as the new Senate President pro-tempore in November of 2025, succeeding Senator Mike McGuire (D, Healdsburg). With a new pro-tempore, came new Senate Chairpersons. Senator Josh Becker was appointed Chair of the Senate Natural Resources and Water Committee, replacing Senator Limon. Senator Maria Elena Durazo (D, Los Angeles) retained her position as chair of the Senate Local Government Committee. Assemblymembers Diane Papan (D, San Mateo) and Juan Carrillo (D, Palmdale) retained their chair positions of the Assembly Water, Parks, and Wildlife Committee and Assembly Local Government Committee, respectively. This second year of the 2025-26 session, legislators in both houses remain subject to the two-year limit of 35 bills each. Between both houses of the legislature, close to 1800 bills were introduced by the February 20 bill introduction deadline. This is 550 fewer bills than last year, and the lowest number introduced in the last twenty years. With the bill-introduction deadline behind us and intent and spot bills being amended, we can now anticipate this year's legislative and regulatory priorities for Otay Water District. 1. Water Affordability For the previous few sessions, Otay’s identified top priority has been affordability. Otay has sponsored and supported various proposals to protect water rates and service-related fees and charges from costly Proposition 218 litigation, and to implement low-income household rate assistance (LIRA) programs. While affordability remains a concern for legislators, few proposals have been introduced. However, one key proposal to further protect agencies from Proposition 218 litigation is moving forward. • AB 2180 (Ward) - Proposition 218. Proportional Cost of Service o This bill would clarify what proportionality means in the context of rates, providing clarity and predictability for water agencies in developing and adopting DATE: March 12, 2026 TO: Board of Directors and General Manager Jose Martinez, Otay Water District FROM: Baltazar Cornejo, Policy Advisor, Brownstein Hyatt Farber Schreck, LLC RE: 2026 Anticipated Legislative and Regulatory Priorities Attachment D 2 Brownstein's Anticipated 2026 Legislative and Regulatory Priorities for Otay WD_FINAL DRAFT.docx Constitutionally-sound rates. Would codify the Court of Appeal’s framework in Dreher v. LADWP. o This bill is sponsored by the Association of California Water Agencies (ACWA) and was developed by Otay Water District staff and a working group of attorneys representing water agencies. 2.State Budget Funding Governor Gavin Newsom’s 2026–27 and his final January budget proposal acknowledges that California faces a state deficit in the current fiscal year. However, the proposal is characteristically optimistic regarding the size of the deficit and remains equally ambitious in outlining how the state will deploy resources across key priorities, including agency consolidation, long-term debt repayment, and legacy projects during the governor’s final year in office. The budget reports a $2.9 billion deficit, described as a “modest shortfall” by Department of Finance (DOF) staff. This estimate differs markedly from the Legislative Analyst’s Office (LAO) projection of a $17.6 billion deficit—a gap of $14.7 billion. According to department staff, the governor’s proposal incorporates $31.5 billion in additional revenues not included in the LAO forecast and excludes the risk of a stock market downturn that the LAO elected to factor into its analysis. Overall, the state budget totals $348.9 billion, including $248.3 billion in general fund expenditures and $23 billion in total reserves. According to the governor, the budget is balanced for the 2026–27 fiscal year. Still, the state faces a projected $22 billion deficit in the following fiscal year, with additional shortfalls anticipated in subsequent years. The governor’s proposed budget continues to build on investments for a clean and resilient future, supporting the deployment of zero-emission vehicles and addressing climate concerns related to extreme heat, droughts, flooding, and wildfires. Below is a breakdown of investments from recent bond issuances and spending adjustments for various agencies, departments, and boards. Advance Clean Fleets (ACF) and Zero Emission Vehicles (ZEV) The proposed budget provides targeted funding to incentivize ZEV adoption and to support additional actions to accelerate the deployment of the required infrastructure. The incentive includes $200 million in one-time special funds and statutory language to establish a new light-duty ZEV incentive program. It also includes $1.7 million in ongoing funding to fund 10 positions to implement the state and local government elements of ACF. Proposition 4 Climate Bond Spending Plan In the second year of climate-bond spending, the governor proposes to allocate $2.1 billion in the following categories: ●$792 million for Safe Drinking Water, Drought, Flood, and Water Resilience. Of that amount, the items below are highlighted for relevance: 3 Brownstein's Anticipated 2026 Legislative and Regulatory Priorities for Otay WD_FINAL DRAFT.docx ○$232 million for flood control projects to evaluate, repair, rehabilitate, reconstruct, expand, or replace levees, weirs, bypasses, and facilities of the State Plan of Flood Control, projects in the Sacramento-San Joaquin Delta, and projects funded through the Flood Control Subventions Program. ○$173 million for drinking water projects serving small or disadvantaged communities or tribes. ○$68.8 million to support repairs to existing or new water conveyance projects. ●$314 million for Wildfire and Forest Resilience. Of that amount, the items below are highlighted for relevance: ○$58 million in local fire prevention grants to fund wildfire prevention and hazardous fuels reduction projects and activities in and near wildfire-threatened communities. ○$19.6 million fire resilience funding for technical and financial assistance to help homeowners in wildfire-vulnerable areas to implement defensible space mitigations, including the creation of an ember-resistant (Zone 0) within five feet of a physical property. ○$15.2 million for wildfire risk reduction grants related to electrical transmission, in coordination with the Office of Energy Infrastructure Safety, to support cooperation in advancing fuel reduction around wildfire-vulnerable communities to reduce wildfire ignitions. ●$107 million for Coastal Resilience ●$241 million for Extreme Heat Mitigation ●$199 million for Biodiversity and Nature-Based Solutions ●$89 million for Climate Smart Agriculture ●$35 million for Outdoor Access ●$326 million for Clean Air Energy Cap and Investment The budget proposes the following Greenhouse Gas Reduction Fund (GGRF) expenditure plan, reflecting last year’s changes to the Cap-and-Invest (formerly known as Cap-and-Change) Program, which created three tiers of expenditures, with Tier 1 fully funded first, followed by Tiers 2 and 3: ●Tier 1—Manufacturing Tax Credit, State Operations, State Responsibility Area Backfill, and the Legislative Counsel Climate Bureau. ●Tier 2—$1 billion for high-speed rail and $1 billion for discretionary funding. ●Tier 3—Previously, percentage-based continuous appropriations are now capped dollar amounts, with proportionally related allocations that adjust downwards as necessary to ensure Tiers 1 and 2 are fully funded. 4 Brownstein's Anticipated 2026 Legislative and Regulatory Priorities for Otay WD_FINAL DRAFT.docx • AB 35 (Alvarez): Proposition 4 Climate Bond Act APA Exemption o Exempts the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024, approved by the voters as Proposition 4, from the Administrative Procedures Act (APA). o ACWA has adopted a “support” position. 3. Wildfire Prevention, Emergency Management, and Liability Last year, legislators introduced and debated multiple bills to address concerns raised by the wildfires that devastated Southern California. In response, ACWA developed a dedicated webpage with resources to assist members impacted by the wildfires, along with a fact sheet for advocacy purposes, which can be viewed here. ACWA and allied local government associations were heavily engaged in addressing concerns from their memberships regarding various wildfire-related bills that would have imposed costly mandates. In response, ACWA has introduced its own sponsored legislation to pre- empt a similar fight this year. • SB 1153 (Caballero): Public Water Agency Roles in Wildfire Response. o Starting January 1, 2028, this bill would require urban retail water suppliers in high fire risk zones to incorporate specific wildfire response procedures into their preparedness plans. These plans must include actions to reduce the impact of wildfires on water systems and drinking water supply. Failing to meet these requirements would be a misdemeanor. o The bill states that failure to maintain water supply during a wildfire is not a substantial cause of fire damages, nor is wildfire spread considered a risk inherent to the water system's design. o This bill is sponsored by ACWA. • AB 2013 (Bennett): Fire risk areas: water suppliers: emergency preparedness plan. o This bill proposes that water suppliers serving more than 100 customers in these fire hazard zones develop an emergency preparedness plan. This plan must address responses to red flag warnings, extreme weather events, and significant power outages, ensuring adequate water supply for both customer service and firefighting activities. The plan should also include an assessment identifying necessary water pumps to maintain water services. o ACWA has adopted an “oppose unless amended” position. • SB 1417 (Perez): Disaster preparedness: public water systems. o This bill requires disaster-impacted water systems to conduct assessments within six months of a disaster, involving local county coordination before receiving state funding. This assessment should determine if consolidating water systems benefit affected residents and include specified components. It also mandates transparency, public input, and bilingual translation services during the assessment process, with non- compliance being a misdemeanor. 5 Brownstein's Anticipated 2026 Legislative and Regulatory Priorities for Otay WD_FINAL DRAFT.docx o ACWA has adopted an “oppose unless amended” position. •SB 1001 (Archuleta): Water utility workers: identification card program. o This bill would require the Office of Emergency Services to create an identification program for water utility workers, giving them access to restricted areas during disasters for critical tasks like ensuring public health and restoring water services. The application for these ID cards must be signed by a water utility representative and certified under penalty of perjury. The office may charge a fee for ID cards to cover program costs. While specific officers can close off areas, they cannot prevent ID holders from entering, unless entry is deemed unsafe or disruptive. o ACWA has adopted a “favor if amended” position and is internally working through membership concerns for amendments to offer. 4.Governance This section includes bills introduced to provide local agencies with assistance in their governance. •AB 259 (Rubio): Open meetings o Current law authorizes, until January 1, 2026, members of a legislative body of a local agency to use teleconferencing without identifying each teleconference location in the notice and agenda of the meeting, and without making each teleconference location accessible to the public, under specified conditions and with limits on the number of times individual governing body members utilize teleconferencing each year. o This is a California Special District Association (CSDA)-sponsored bill that ACWA supports as it would remove the sunset clause and make these teleconferencing provisions permanent. o This bill was placed on hold last year when part of its provisions were amended into SB 707 (Durazo, 2025). The bill passed out of the Assembly in January and is now pending in the Senate. •SB 239 (Arreguin): Open meetings: teleconferencing: subsidiary body o This is an ACWA-favored bill sponsored by California State Association of Counties (CSAC) to allow subsidiary bodies to use alternative teleconferencing provisions, requiring public notice, agenda posting, and camera visibility during meetings accessible online. It would also mandate listing remote participants in meeting minutes and require initial and annual authorization by a majority vote. A 2/3 approval is needed for subsidiary bodies to use these provisions, which do not apply to bodies overseeing police, elections, or budgets. Elected officials on such bodies must meet specific agenda and quorum standards, and any recommendations must be presented to the parent legislative body. Subsidiary bodies would be defined as serving exclusively 6 Brownstein's Anticipated 2026 Legislative and Regulatory Priorities for Otay WD_FINAL DRAFT.docx in an advisory capacity and not authorized to take final action on legislation, regulations, contracts, licenses, grants, permits, or other entitlements. o This is an ACWA-favored bill that was placed on hold last year when part of its provisions were amended into SB 707 (Durazo, 2025). The bill passed out of the Senate in January and is now pending in the Assembly. 5. Local Control This section includes bills that place further constraints on agencies' ability to collect necessary fees, thereby reducing local control. • SB 1005 (Caballero): Local agency: payment: rounding amount. o This bill would allow local agencies to round cash payments, refunds, or amounts up to the nearest $0.05. Local agency's governing body must approve this with a majority vote through a resolution. • AB 1710 (Carrillo): Housing developments: ordinances, policies, and standards o This bill would apply the “reasonable person” standard to reviews of housing development projects for the Permit Streamlining Act and would add post entitlement permit standards, among others, to the list of “ordinances, policies, and standards” that can be vested under the Housing Accountability Act. o ACWA has adopted a “not favor unless amended” position to join a coalition with CSDA, CASA, and California Municipal Utilities Association. The amendments would: 1) exempt from the vesting provisions any rule, regulation, determination or other requirement adopted or implemented by a local agency to mitigate fire risk, enhance water efficiency, address water quality, or to ensure an adequate water supply for a community; and 2) exempt local agency “programs, policies, ordinances, standards, or requirements” related to the provision of utility service from the reasonable person standard. 6. Drinking Water Quality & State Mandates On February 19, 2025, the State Water Resources Control Board adopted the Prioritization of Drinking Water Regulations Development for calendar year 2025. The resolution, among other things, directed the Division of Drinking Water to prioritize developing MCLs for per- and polyfluoroalkyl substances (PFAS), disinfection byproducts, arsenic, n-nitroso-dimethylamine (NDMA), styrene, and cadmium and mercury. Lead and copper rule revisions will also be considered. Similarly, on March 3, 2026, the State Board discussed the Prioritization of Drinking Water Regulations Development for this calendar year. The staff recommendation was to adopt the proposed resolution. This includes the same MCLs from last year, lead and copper rule revisions, cross-connection control policy handbook revisions, and others. 7 Brownstein's Anticipated 2026 Legislative and Regulatory Priorities for Otay WD_FINAL DRAFT.docx •SB 1313 (McNerney): Public water systems: grants and loans: perfluoroalkyl and polyfluoroalkyl substances. o This bill would expand the authority of the State Board to provide grants or loans for addressing perfluoroalkyl and polyfluoroalkyl substances in drinking or source water. It outlines possible funding sources and activities for these projects and allows the board to execute the bill using a policy handbook or workplan, bypassing the usual rulemaking procedures of the Administrative Procedure Act. o ACWA has yet to take a position. 7.Advanced Clean Fleets In response to its failure to receive a USEPA Clean Air Act waiver to implement the Advanced Clean Fleets (ACF) regulation before the transition of the Biden Presidential administration to the new Trump administration, early last year CARB withdrew its waiver request, not enforcing portions of the ACF regulation that would have required federal authorization. However, this was true only for portions that apply to high-priority and drayage fleets, and CARB continues to enforce the state and local fleet requirements that became effective on January 1, 2024. Furthermore, CARB delayed bringing AB 1594 (Garcia, Chapter 585 Statuses of 2023) Amendments to the Advanced Clean Fleets Regulation for CARB Board approval following stakeholder input. The informal comment docket was reopened to submit written comments to CARB staff. ACWA staff have continued to comment, highlighting changes to exemption pathways that need to be addressed in supplemental comment periods. These include: •Supporting the addition of the Traditional Utility Specialty Vehicle (TUSV) definition and incorporation into ACF in 45-Day Changes, •Supporting broadening the definition of Near-Zero Emission Vehicles (NZEVs) in the 45-Day Change, •Encouraging supplemental comment periods to o reframe mutual aid exemption to enable upfront use, o reframe the ZEV purchase exemption to reflect criteria used by fleets to purchase vehicles that meet their needs, and o reframe the daily usage exemption to use available data to reflect needs. Otay also submitted a letter to CARB staff. ACWA staff is aware that the upcoming 15-Day Changes for ACF do not reduce the fleet percentage requirement from 10% to 5% (or lower) to access the Mutual Aid and Daily Usage exemption pathways. 8 Brownstein's Anticipated 2026 Legislative and Regulatory Priorities for Otay WD_FINAL DRAFT.docx 8.Water Supply & Management While the last few years saw much-needed progress on the Delta Conveyance Project (DCP), a major legal setback occurred in January of this year. The State’s Third District Court of Appeal rejected the State’s plan to issue billions of dollars in bonds to fund its construction. Water rights hearings continue, along with planning and engineering work. Following the passage of SB 72 (Caballero, 2025), on January 25, Governor Gavin Newsom announced the formal launch of the California Water Plan 2028, the start of a multiyear effort to modernize statewide water planning “in response to climate-driven extremes and long-term water reliability challenges.” SB 72 establishes an interim statewide planning target of 9 million acre-feet by 2040 and serves as a benchmark that includes supply, conservation, recharge, and storage to strengthen long- term water reliability. The Department of Water Resources (DWR) is convening an Advisory Committee to work on shaping the workplan for both the 2028 and 2033 Water Plan updates. Legislation that impacts water supply management includes: •SB 1085 (Durazo): Water supply planning: California Environmental Quality Act determination. o Current law, the California Environmental Quality Act (CEQA) mandates a leading agency to determine if a project is exempt from CEQA and to decide if an environmental impact report, a negative declaration, or a mitigated negative declaration is necessary. o Current law requires cities or counties to identify any public water systems that could supply water to certain projects subject to CEQA and to ask these systems to prepare a water supply assessment. o The bill changes this by requiring cities or counties to identify public water systems for certain projects they approve, regardless of whether these projects fall under CEQA. o ACWA has adopted a “favor” position. 9. Water Conservation and Water-Use Efficiency The State Board received approval from the Office of Administrative Law for the Making Conservation a California Way of Life regulation on Oct. 22 of 2024. The board released the Water Use Objective Reporting form and guidance documents on the Resources for Urban Water Suppliers webpage. Urban retail water suppliers were required to submit their reporting form to the State Board by January 1, 2025, and to do so annually thereafter. A few bills listed below have been introduced regarding water- use efficiency. •SB 1139 (Laird): Nonfunctional turf: noncompliance and enforcement. o Current law bans using potable water for irrigating non-functional turf at certain commercial, industrial, and institutional properties, with exceptions like cemeteries and homeowners’ associations. Violations are subject to penalties from the State Board or local urban water suppliers. Local entities can enforce this prohibition. 9 Brownstein's Anticipated 2026 Legislative and Regulatory Priorities for Otay WD_FINAL DRAFT.docx o The bill adds that special districts with water conservation enforcement authority can also impose penalties and enforce the prohibition based on local ordinances or policies. o ACWA has yet to take a position on this bill. •AB 2630 (Bennett): Water diversion and use: adoption of regulations. o The bill proposes that all future regulations by the State Board regarding water diversions and use also be adopted as emergency regulations, remain effective until updated, and continue to be exempt from CEQA. o ACWA has adopted a “oppose” position. 10. Water Rights A thing that is of near certainty to be introduced by a legislator in regard to water every year is legislation attempting to fundamentally change water rights or impact existing prioritization of water uses. One such bill is: •AB 2218 (Kalra) – Water policy: California Native American tribes. o This bill acknowledges historical injustices faced by California Native American tribes due to state-sanctioned actions like termination, removal, and assimilation. It aims to rectify these inequities through compensation, legal recognition, or the restoration of lost benefits. The bill mandates that state agencies, such as the Department of Water Resources and the State Board, integrate this policy when developing or revising water rights, regulations, permits, or grant criteria. o ACWA has adopted a “oppose unless amended” position. Otay Water District Anticipated Priorities for 2026 Early Session Overview Presented by: Baltazar Cornejo Policy Advisor March 18, 2026 Attachment E © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | Legislative Update •Legislature reconvened on January 5, 2026. •Between both houses of the legislature, close to 1800 bills were introduced by the February 20 bill introduction deadline. This is 550 fewer bills than last year, and the lowest number introduced in the last twenty years •Key Legislative Deadlines: —January 10 –Governor’s Budget Proposal —February 20 –Bill Introduction deadline —May 29 –Last day for each house pass bills introduced in that house. (“House of Origin Deadline”). —June 15 –Budget must be passed by midnight —August 31 –Deadline to pass bills out of Legislature. (“Final Recess upon Adjournment of Session”) —September 30 –Last day for Governor to sign or veto bills passed on or before September 1 2 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com |3 Affordability While affordability remains a concern for legislators, few proposals have been introduced. However, one key proposal to further protect agencies from Proposition 218 litigation is moving forward. •AB 2180 (Ward) - Proposition 218. Proportional Cost of Service —This bill would clarify what proportionality means in the context of rates, providing clarity and predictability for water agencies in developing and adopting Constitutionally-sound rates. Would codify the Court of Appeal’s framework in Dreher v. LADWP. —This bill is sponsored by the Association of California Water Agencies (ACWA) and was developed by Otay Water District staff and a working group of attorneys representing water agencies. © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | State Budget Funding •January 10 - Governor proposed $348.9 billion state budget for the 2026-27 fiscal year (FY), projecting a deficit of $2.9 billion after three years of state budget deficits. •This estimate differs from the Legislative Analyst’s Office (LAO) projection of a $17.6 billion deficit—a gap of $14.7 billion. According to department staff, the governor’s proposal incorporates $31.5 billion in additional revenues not included in the LAO forecast and excludes the risk of a stock market downturn that the LAO elected to factor into its analysis. •The governor’s proposed budget continues to build on investments for a clean and resilient future, supporting the deployment of zero-emission vehicles and addressing climate concerns related to extreme heat, droughts, flooding, and wildfires. 4 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | State Budget Funding Cont. 5 Proposition 4 Climate Bond Spending Plan In the second year of climate-bond spending, the governor proposes to allocate $2.1 billion in the following categories: •$792 million for Safe Drinking Water, Drought, Flood, and Water Resilience. Of that amount, the items below are highlighted for relevance: o $232 million for flood control projects to evaluate, repair, rehabilitate, reconstruct, expand, or replace levees, weirs, bypasses, and facilities of the State Plan of Flood Control, projects in the Sacramento-San Joaquin Delta, and projects funded through the Flood Control Subventions Program. o $173 million for drinking water projects serving small or disadvantaged communities or tribes. o $68.8 million to support repairs to existing or new water conveyance projects. •$314 million for Wildfire and Forest Resilience. Of that amount, the items below are highlighted for relevance: o $58 million in local fire prevention grants to fund wildfire prevention and hazardous fuels reduction projects and activities in and near wildfire-threatened communities. o $19.6 million fire resilience funding for technical and financial assistance to help homeowners in wildfire-vulnerable areas to implement defensible space mitigations, including the creation of an ember-resistant (Zone 0) within five feet of a physical property. o $15.2 million for wildfire risk reduction grants related to electrical transmission, in coordination with the Office of Energy Infrastructure Safety, to support cooperation in advancing fuel reduction around wildfire-vulnerable communities to reduce wildfire ignitions. © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | State Budget Funding Cont. 6 Proposition 4 Climate Bond Spending Plan •$107 million for Coastal Resilience •$241 million for Extreme Heat Mitigation •$199 million for Biodiversity and Nature-Based Solutions •$89 million for Climate Smart Agriculture •$35 million for Outdoor Access •$326 million for Clean Air Energy © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | State Budget Funding Cont. •Budget change proposals are continuing to be released. •Different organizations are submitting letters to the Governor and Budget Committee Leadership expressing their position on the Governor’s proposed budget and on budget change proposals. •Budget trailer bill language will also begin to be released leading up the May Revision. •One bill introduced includes: •AB 35 (Alvarez): Proposition 4 Climate Bond Act APA Exemption —Exempts the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024, approved by the voters as Proposition 4, from the Administrative Procedures Act (APA). —ACWA has adopted a “support” position. 7 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | Wildfire Prevention, Emergency Management, and Liability Legislators last year introduced and debated multiple bills to address concerns raised by the wildfires that devastated Southern California. ACWA has introduced its own sponsored legislation to pre-empt a similar fight this year. •SB 1153 (Caballero): Public Water Agency Roles in Wildfire Response. —Starting January 1, 2028, this bill would require urban retail water suppliers in high fire risk zones to incorporate specific wildfire response procedures into their preparedness plans. These plans must include actions to reduce the impact of wildfires on water systems and drinking water supply. Failing to meet these requirements would be a misdemeanor. —The bill states that failure to maintain water supply during a wildfire is not a substantial cause of fire damages, nor is wildfire spread considered a risk inherent to the water system's design. —This bill is sponsored by ACWA. •AB 2013 (Bennett): Fire risk areas: water suppliers: emergency preparedness plan. —This bill proposes that water suppliers serving more than 100 customers in these fire hazard zones develop an emergency preparedness plan. This plan must address responses to red flag warnings, extreme weather events, and significant power outages, ensuring adequate water supply for both customer service and firefighting activities. The plan should also include an assessment identifying necessary water pumps to maintain water services. —ACWA has adopted an “oppose unless amended” position. 8 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | Wildfire Legislation Cont. •SB 1417 (Perez): Disaster preparedness: public water systems. —This bill requires disaster-impacted water systems to conduct assessments within six months of a disaster, involving local county coordination before receiving state funding. This assessment should determine if consolidating water systems benefit affected residents and include specified components. It also mandates transparency, public input, and bilingual translation services during the assessment process, with non-compliance being a misdemeanor. —ACWA has adopted an “oppose unless amended” position. •SB 1001 (Archuleta): Water utility workers: identification card program. —This bill would require the Office of Emergency Services to create an identification program for water utility workers, giving them access to restricted areas during disasters for critical tasks like ensuring public health and restoring water services. The application for these ID cards must be signed by a water utility representative and certified under penalty of perjury. The office may charge a fee for ID cards to cover program costs. While specific officers can close off areas, they cannot prevent ID holders from entering, unless entry is deemed unsafe or disruptive. —ACWA has adopted a “favor if amended” position and is internally working through membership concerns for amendments to offer. 9 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | Governance •AB 259 (Rubio): Open meetings —Current law authorizes, until January 1, 2026, members of a legislative body of a local agency to use teleconferencing without identifying each teleconference location in the notice and agenda of the meeting, and without making each teleconference location accessible to the public. This bill would remove the sunset clause and make these provisions permanent. —This bill was placed on hold last year when part of its provisions were amended into SB 707 (Durazo, 2025). The bill passed out of the Assembly in January and is now pending in the Senate. •SB 239 (Arreguin): Open meetings: teleconferencing: subsidiary body —This bill would allow subsidiary bodies to use alternative teleconferencing provisions, requiring public notice, agenda posting, and camera visibility during meetings accessible online. This is an ACWA-favored bill that was placed on hold last year when part of its provisions were amended into SB 707 (Durazo, 2025). The bill passed out of the Senate in January and is now pending in the Assembly. 10 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | Local Control This section includes bills that place further constraints on agencies' ability to collect necessary fees, thereby reducing local control. •SB 1005 (Caballero): Local agency: payment: rounding amount. —This bill would allow local agencies to round cash payments, refunds, or amounts up to the nearest $0.05. Local agency's governing body must approve this with a majority vote through a resolution. •AB 1710 (Carrillo): Housing developments: ordinances, policies, and standards —This bill would apply the “reasonable person” standard to reviews of housing development projects for the Permit Streamlining Act and would add post entitlement permit standards, among others, to the list of “ordinances, policies, and standards” that can be vested under the Housing Accountability Act. —ACWA has adopted a “not favor unless amended” position to join a coalition with CSDA, CASA, and California Municipal Utilities Association. The amendments would: 1) exempt from the vesting provisions any rule, regulation, determination or other requirement adopted or implemented by a local agency to mitigate fire risk, enhance water efficiency, address water quality, or to ensure an adequate water supply for a community; and 2) exempt local agency “programs, policies, ordinances, standards, or requirements” related to the provision of utility service from the reasonable person standard. 11 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | Drinking Water Quality Mandates California Regulatory and Legislative Developments: On March 3, 2026, the State Board discussed the Prioritization of Drinking Water Regulations Development for this calendar year. The staff recommendation was to adopt the proposed resolution. This includes the same MCLs from last year, lead and copper rule revisions, cross-connection control policy handbook revisions, and others. •SB 1313 (McNerney): Public water systems: grants and loans: perfluoroalkyl and polyfluoroalkyl substances. —This bill would expand the authority of the State Board to provide grants or loans for addressing perfluoroalkyl and polyfluoroalkyl substances in drinking or source water. It outlines possible funding sources and activities for these projects and allows the board to execute the bill using a policy handbook or workplan, bypassing the usual rulemaking procedures of the Administrative Procedure Act. —ACWA has yet to take a position. 12 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | Advanced Clean Fleets Failure of CARB to receive Clean Air Act waiver by USEPA to fully implement ACF Regulation before transition from Biden administration to Trump administration. CARB argues that it retains authority to implement ACF for state and local fleets. Furthermore, CARB delayed bringing AB 1594 (Garcia, Chapter 585 Statuses of 2023) Amendments to the Advanced Clean Fleets Regulation for CARB Board approval following stakeholder input. The informal comment docket has been reopened to submit written comments to CARB staff. ACWA staff have continued to comment, highlighting changes to exemption pathways that need to be addressed in supplemental comment periods. These include: •Supporting addition of Traditional Utility Specialty Vehicle (TUSV) definition and incorporation into ACF in 45-Day Changes, •Supporting broadening definition of Near-Zero Emission Vehicles (NZEVs) in 45-Day Change, encouraging supplemental comment periods to —reframe mutual Aid Exemption to enable upfront use, —reframe the ZEV Purchase Exemption to reflect criteria used by fleets to purchase vehicles that meet their needs, and —reframe the Daily Usage Exemption to use available data to reflect needs. 13 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | Advanced Clean Fleets Cont. CARB’s continuous push to enforce these requirements and its slow progress in implementing 2023 legislation, which was intended to provide flexibility to local agencies, has resulted in the introduction of additional legislation in this space. ACWA staff is aware that the upcoming 15-Day Changes for ACF do not reduce the fleet percentage requirement from 10% to 5% (or lower) to access the Mutual Aid and Daily Usage exemption pathways. 14 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | Water Supply Management While the last few years saw much-needed progress on the Delta Conveyance Project (DCP), a major legal setback occurred in January of this year. The State’s Third District Court of Appeal rejected the State’s plan to issue billions of dollars in bonds to fund its construction. Water rights hearings continue, along with planning and engineering work. On January 25, Governor Newsom announced the formal launch of the California Water Plan 2028, the start of a multiyear effort to modernize statewide water planning “in response to climate-driven extremes and long-term water reliability challenges.” SB 72 establishes an interim statewide planning target of 9 million acre-feet by 2040 and serves as a benchmark that includes supply, conservation, recharge, and storage to strengthen long-term water reliability. The Department of Water Resources (DWR) is convening an Advisory Committee to work on shaping the workplan for both the 2028 and 2033 Water Plan updates. •SB 1085 (Durazo): Water supply planning: California Environmental Quality Act determination. —Current law requires cities or counties to identify any public water systems that could supply water to certain projects subject to California Environmental Quality Act and to ask these systems to prepare a water supply assessment. —The bill changes this by requiring cities or counties to identify public water systems for certain projects they approve, regardless of whether these projects fall under CEQA. —ACWA has adopted a “favor” position. 15 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | Water Conservation & Water Use Efficiency State Water Board received approval from the OAL for the Making Conservation a California Way of Life regulation on October 22 of last year. The board has released Water Use Objective Reporting form and guidance documents on the Resources for Urban Water Suppliers webpage. Urban retail water suppliers were required to submit their reporting form to the State Water Board by January 1, 2025, and annually thereafter. Below are bills introduced regarding water efficiency. •SB 1139 (Laird): Nonfunctional turf: noncompliance and enforcement. —Current law bans using potable water for irrigating non-functional turf at certain commercial, industrial, and institutional properties, with exceptions like cemeteries and homeowners’ associations. Violations are subject to penalties from the State Board or local urban water suppliers. Local entities can enforce this prohibition. —The bill adds that special districts with water conservation enforcement authority can also impose penalties and enforce the prohibition based on local ordinances or policies. —ACWA has yet to take a position on this bill. •AB 2630 (Bennett): Water diversion and use: adoption of regulations. —The bill proposes that all future regulations by the State Board regarding water diversions and use also be adopted as emergency regulations, remain effective until updated, and continue to be exempt from CEQA. —ACWA has adopted a “oppose” position. 16 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | Water Rights This year has already seen the introduction of water rights legislation problematic to ACWA member agencies, which includes: •AB 2218 (Kalra) – Water policy: California Native American tribes. —This bill acknowledges historical injustices faced by California Native American tribes due to state-sanctioned actions like termination, removal, and assimilation. It aims to rectify these inequities through compensation, legal recognition, or the restoration of lost benefits. The bill mandates that state agencies, such as the Department of Water Resources and the State Board, integrate this policy when developing or revising water rights, regulations, permits, or grant criteria. —ACWA has adopted a “oppose unless amended” position. 17 Questions? Baltazar Cornejo bcornejo@bhfs.com (916)594-9705 TO: The Otay Water District Board of Directors, General Manager Jose Martinez FROM: Daniel R. Shinoff, Esq. RE: Increasing the Board of Directors Per Diem Compensation - Policy 08 DATE: March 24, 2026 PURPOSE Policy 8 provides for Board members to be compensated for each day of attendance at meetings of the Board or for each day of service rendered as a Director by request or authorization of the Board. California Water Code sections 20200 et seq. authorize the Board of Directors, by Ordinance, to increase the amount of per diem compensation they receive for performing approved duties. If the per diem compensation is increased, Policy 8 will also need to be amended to reflect the change. The purpose of the proposed amendments outlined in this report is to update Board of Directors Policy 8 to increase the compensation to be paid to members of the Board of Directors for each day of service as a Director. PROPOSED CHANGES TO POLICY NO. 8 1.Increasing Compensation to be Paid to Members of the Board of Directors Board Policy 8 Section A. Directors’ Per Diem provides, in pertinent part, that the membersof the Board of Directors receive per diem compensation “in the amount of $181 for each day of attendance at meetings of the Board or for each day of service rendered as a Director by request or authorization of the Board, not to exceed a total of ten (10) days in any calendar month.” Water Code Section 20201 provides that the Board may provide compensation to members of the Board of Directors “in an amount not to exceed … $100”. Section 20202 authorizes the Board to increase the amount of compensation above the amount of $100 per day but, provides that “the increase may not exceed an amount equal to 5 percent, for each calendar year following the operative date of the last adjustment ...” Procedurally any increase must be by Ordinance after a properly noticed public hearing (Water Code Section 20203). The public hearing must be noticed pursuant to Section 6066 of the Government Code, which requires publication of notice of the AGENDA ITEM 7a Proposed Changes to Policy No. 8 March 24, 2026 Page 2 proposed Ordinance “once a week for two successive weeks.” Section 6066 provides further that “[t]wo publications in a newspaper published once a week or oftener, with at least five days intervening between the respective publication dates not counting such publication dates, are sufficient. The period of notice commences upon the first day of publication and terminates at the end of the fourteenth day, including therein the first day.” Section 20204 of the Water Code provides that the ordinance increasing compensation to be paid board members shall become effective sixty (60) days from the date of its final passage. The District has complied with notice publication requirements by the Star News and the East County Californian newspapers on March 13, 2026 and March 20, 2026. Accordingly, pursuant to the aforementioned legal authorities and the District Policy, the Board is legally authorized to increase by Ordinance, the current compensation of $181 for each day of attendance at meetings of the Board or for each day of service rendered as a Director by request or authorization of the Board, to $190 per day, and not to exceed 10 days per month. 2.Policy Corrections Necessary to Conform with the Law a.If the Board adopts Ordinance No. 603 and increases the Directors’ per diemcompensation pursuant to California Water Code section 20200 et seq., Policy 8, Section A. Directors’ Per Diem must also be amended to reflect the amount of theincreased per diem compensation. The proposed corrections are shown on the document titled “Policy No. 8 Strike-through”, which is attached to this Report. The Board can adopt the proposed corrections by Resolution. Attachments: Attachment A: Ordinance No. 603 Attachment B: Resolution No. 4471 Exhibit 1: Policy No. 8 Strike-through Exhibit 2: Policy No. 8 Clean Copy ATTACHMENT A ORDINANCE NO. 603 ORDINANCE OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT INCREASING THE COMPENSATION TO BE PAID TO MEMBERS OF THE BOARD OF DIRECTORS FOR COMPENSATION FOR EACH DAY OF ATTENDANCE AT MEETINGS OF THE BOARD OR FOR EACH DAY OF SERVICE RENDERED AS A DIRECTOR WHEREAS, California Water Code Section 20200 et seq. sets forth the authority and procedure for establishing per diem compensation for the Board of Directors for occurrences constituting District business, official duties or each day's service rendered as a Director at the request of the Board, as a "day’s service" is defined and authorized by separate District resolution and updated from time to time; and WHEREAS, the California Water Code authorizes an increase in the per diem compensation that the Board of Directors may receive of up to five percent (5%) for each calendar year from the effective date of the last increase, and limits the total compensation that may be received to a maximum of ten (10) days per calendar month; and WHEREAS, the last adjustment in compensation for the Board of Directors occurred effective July 1, 2025; and WHEREAS, the Board of Directors seeks to increase the amount of compensation in accordance with the provisions of the California Water Code; and WHEREAS, Section 20204 of the California Water Code provides that the ordinance increasing compensation to be paid board members shall become effective sixty (60) days from the date of its final passage; and WHEREAS, in accordance with Section 20203 of the California Water Code and Section 6066 of the California Government Code, a public hearing was held before the Board at its regular meeting on April 1, 2026, at 3:30 p.m., or soon thereafter as was practicable, at the District’s administrative building located at 2554 Sweetwater Springs Boulevard, Spring Valley, California ATTACHMENT A 91978, and a notice of said hearing was duly published in the Star News and the East County Californian newspapers on March 13, 2026 and March 20, 2026. NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT DOES HEREBY PROMULGATE ORDINANCE NO. 603 AND DOES ORDAIN AS FOLLOWS: Section 1. Beginning on July 1, 2026, and continuing until modified by Board action, the per diem compensation for Directors of Otay Water District is increased to One Hundred Ninety Dollars ($190) for each day of attendance at meetings of the Board or for each day of service rendered as a Director by request or authorization of the Board. Said increase does not exceed five percent (5%) for each calendar year since the effective date of the last increase; and Section 2. In accordance with Section 20202 of the California Water Code, no member of the Board of Directors shall receive the compensation set forth in Section 1 of this Ordinance for more than ten (10) days in any calendar month. Section 3. This Ordinance shall take effect on July 1, 2026, pursuant to Section 20204 of the California Water Code. Section 4. All ordinances, resolutions, or administrative actions by the Board of Directors, or parts thereof, that are inconsistent with any provision of this Ordinance are hereby superseded only to the extent of such inconsistency. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting held this 1st day of April, 2026. Ayes: Noes: Abstain: Absent: President ATTEST: District Secretary RESOLUTION NO. 4471 RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING BOARD OF DIRECTORS POLICY NO. 8, REIMBURSEMENT OF EXPENSES. WHEREAS, the Otay Water District Board of Directors Policy No. 8 provides for, among other things, per diem compensation for Directors and reimbursement of expenses which are the personal responsibility of the Directors. WHEREAS, a revision to Otay Water District Board of Directors Policy No. 8 is required to reflect the Directors’ increased per diem compensation of One Hundred Ninety Dollars ($190) effective July 1, 2026, following the Board’s adoption of Ordinance 603 after a properly noticed public hearing at its regular meeting on April 1, 2026. WHEREAS, the amendments to Policy No. 8 to align the policy provisions with Ordinance 603 and with District practice, are in the District’s interest. WHEREAS, the strike-through copy of the proposed policy is attached as Exhibit 1 to this resolution; and WHEREAS, the Board has reviewed and considered the proposed amendments to Policy No. 8. NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED by the Board of Directors of the Otay Water District that the above stated recitals are incorporated herein by reference; BE IT RESOLVED FURTHER that the amended Policy No. 8, incorporated herein as Exhibit 2, is hereby adopted. FINALLY BE IT RESOLVED that this resolution shall be in full force and effect immediately after its passage and approval. ATTACHMENT B PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting held this 1st day of April, 2026. Ayes: Noes: Abstain: Absent: President ATTEST: District Secretary ATTACHMENT B OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/2/25 4/1/26 Page 1 of 7 Purpose To provide guidelines for payment of compensation and reimbursement of expenses to Directors in connection with their attendance at meetings or the performance of other authorized business, and for group insurance benefits for Directors. Background Members of the Board of Directors (“Directors”) attend regular, adjourned or special meetings of the Board of Directors (“Board”). In addition, Directors attend other Otay Water District (District) meetings, committee meetings, association meetings, and educational seminars on behalf of the District. These meetings and seminars are related to District business, water and wastewater, water and wastewater related issues, and California special districts. State statutes authorize District payments for attendance at meetings and reimbursements of expenses incurred. State law also authorizes the District to provide health and welfare benefits for active Directors and, in limited circumstances, retired Directors if they served 12 years and were first elected prior to January 1, 1995. The District is also authorized to offer health and welfare benefits for retired Directors who commenced office on or after January 1, 1995, if the recipient participates on a self-pay basis. Policy The District will compensate Directors on a per diem basis for attendance at authorized meetings or functions and will reimburse Directors for reasonable expenses incurred while traveling on District business to include, lodging, dining, transportation, and related incidentals. A. Directors’ Per Diem As provided in Section 1.01 C. of the District Code of Ordinances, each Director shall receive a per diem in the amount of $190$181 (effective July 1, 20265) for each day of attendance at meetings of the Board or for each day of service rendered as a Director by request or authorization of the Board, not to exceed a total of ten (10) days in any calendar month. Attendance at any meeting shown on Exhibit A to this Policy shall be deemed a meeting requested or authorized by the Board. Attendance at meetings shall be in accordance with Exhibit A. The Board President of the Board or the Board may authorize a Director to attend meetings not listed in Exhibit A when the Board President or the Board determines that it is in the interest of the District that a Director attend, and that such attendance be compensated, and expenses reimbursed. EXHIBIT 1 OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/2/25 4/1/26 Page 2 of 7 Director’s’ claims for per diem amounts shall be made on athe “Board of Directors Per Diem and Mileage Claim Form” (Exhibit B). The Board President of the Board or the Board may approve reimbursement of expenses outside the per diem limit for a Director if the Director submits receipts for all the related District business expenses. The Board President or the Board of Directors may restrict a Director’s ability to receive a per diem for meeting attendance if the Director engages in misconduct. Said restriction may apply to pre-approved meetings as listed on AttachmentExhibit A of this policy. (Please see Board Policy 40: Ethics.). Attendance at a meeting that is not authorized by this policy (pre-approved meetings) or pre-approved by the Board President may be approved by the Board for per diem compensation. Director’s seeking per diem compensation for these meetings shall request that the item be presented to the Board at its next regularly scheduled meeting for consideration. The decision of the Board shall be final. When travel arrangements require a day earlier arrival or a day later departure, Directors will be eligible for the $190$181 per diem and reasonable expenses associated with the extended stay will be reimbursed as specified below. B. Pre-payment of Otherwise Reimbursable Expenses The Director may request pre-payment of registration, transportation, and lodging, using the “Board of Directors Travel Request Form” (Exhibit C). Pre-payments shall be limited to the Director’s’ expenses only. No advances shall be made on travel expenses. C. Reimbursement of Expenses Each Director shall be reimbursed for travel expenses to and from the meetings described in Exhibit A or for any other authorized District business as follows: 1. Authorization Travel associated with the attendance of meetings or functions for Directors shall be approved in advance by the Otay Water District Board President. To request approval of travel, the Director should complete athe “Board of Directors Travel Request Form” (Exhibit C) in order to be eligible for compensation and/or reimbursement. Travel requests will be reviewed and approved by the Board President or the Board. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/2/25 4/1/26 Page 3 of 7 2. Transportation a. Air Transportation The District will endeavor to purchase airline tickets in advance, taking advantage of discounts and low airfares. b. Automobile 1. Personal Auto: Directors may use their personal vehicle. The District will reimburse Directors at the current rate/mile as established by the IRS, plus tolls, parking, etc., provided, however, if air transportation is available, the total amount of expense paid shall be limited to the cost of coacheconomy class air travel between points traveled by personal vehicle. Gasoline, collision and liability insurance, and maintenance will be provided by the Director and is deemed covered in the rate/mileage reimbursement. Directors using personal vehicles on District business must maintain a valid California driver’s license and the automobile insurance coverage required by the State of California, or make arrangements for a driver who meets the above requirements. 2. Rental Cars: Directors shall endeavor to use public transportation, taxi, or a ride-sharing service whenever possible. In the event that a rental car is needed for District business, the District will pre-pay or reimburse Directors for the rental car expenses. Gasoline expenses required for District business travel will be eligible for reimbursement. Such rental car shall be a compact or mid- size class, unless upgrades are offered at no additional cost to the District. c. Miscellaneous Transportation Whenever practicable, bus, taxi, rail, shuttle, or ride- sharing service transportation may be used in lieu of, or in conjunction with, the modes above. 3. Meals and Lodging a. Meals and Beverages OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/2/25 4/1/26 Page 4 of 7 Whenever travel requires meals, the meals, including gratuity, shall be reimbursable, provided the Director presents a receipt along with the “Board of Directors Expense Claim Form” (Exhibit D) for all meals. Reimbursements for expense items where a receipt has been lost will not be paid until the Board President or the Board has reviewed and approved the expense item. Meals are reimbursable based on the Meals and Incidental Expenses (M&IE) as updated by the U.S. General Services Administration: 1.Full Day Reimbursement When a Director is traveling for a full day and no meals are provided for by other sources, such as pre-paid registration, the Director may be reimbursed for meal expenses at the rate provided by the M&IE per day, or amounts determined by the Board President or the Board to be reasonable for the occasion or circumstances. 2.Single Meal Reimbursement When a Director requires reimbursement for a single meal while traveling, the maximum meal reimbursement amount shall be at a rate provided by the M&IE for Bbreakfast, lunch, and/or dinner, or amounts determined by the Board President or the Board to be reasonable for the occasion or circumstances. 3.Partial Day Reimbursement When a Director will be traveling for a partial day or where a single meal is provided for by other sources such as pre- paid registration, the maximum reimbursement amount shall be at the rate provided by the M&IE per meal, or such other amounts as may be determined by the Board President or the Board to be reasonable for the occasion or circumstances. 4.Taxes The maximum meal reimbursement amounts are inclusive of and assume expenses for taxes and gratuities. b.Lodging The District will reimburse Directors or pre-pay accommodations in single rooms at conference facilities or in close proximity when applicable. Or, in the absence of conference accommodations, normal single-room business, OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/2/25 4/1/26 Page 5 of 7 government or commercial class accommodation may be obtained. Under normal circumstances, lodging will not be reimbursed for the night before a conference starts and the night after it ends. However, in situations where available travel schedules would require the Director to leave home before 6:00 AM or return home after 12:00 AM, lodging for the night before or the night after will be reimbursable. 4.Entertainment The District shall not cover any expenses incurred for recreation or entertainment. 5.Incidental Expenses Unavoidable, necessary, and reasonable authorized expenses will be fully reimbursed by the District. Some examples of allowable expenses are: a.Reasonable transportation to local restaurants and to optional functions that are a part of conference events. b.Conference and hotel parking fees. c.Reasonable gratuities. d.The following expenses are not reimbursable: 1.Alcoholic beverages 2.Parking or traffic violations 3.In-room movies or laundry services 4.Expenses incurred by spouses, family members, or guests. 6.Directors’ Responsibility a.Directors must submit a detailed “Board of Directors Expense Claim Form” (Exhibit D) for reimbursement. Claim forms should be supported by vouchers and itemized receipts of expenditures for which reimbursement is being requested. Receipts must be attached for all expenses. If a receipt is lost, the lost receipt must be noted on the “Board of Directors Expense Claim Form” (Exhibit D) and approved by the Board President or the Board before any payment can be made. Claim forms shall be submitted within 45 calendar days after the expense iswas incurred. Expense claims requiring reimbursement to the District, which are not reconciled within 45 calendar days, shall be deducted from the next month’s reimbursement. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/2/25 4/1/26 Page 6 of 7 b.Expenses will not be reimbursed for meetings that have been pre-paid and not attended. The Board President or the Board may excuse an absence for a meeting. The absent Director shall provide a verbal or written report at the next regularly scheduled Board meeting stating the reason for the absence and, if appropriate, request that it be excused. Directors will be required to reimburse the District for any pre-paid expenses for any unexcused absence. This reimbursement will be made by deduction from future expenditures. c.When two (2) or more Directors combine an expense on one receipt, the Director requesting reimbursement should indicate, on or attached to the Director’s “Board of Directors Expense Claim Form”, the identity of the other personsDirector(s) sharing expenses. This will facilitate appropriate allocation of expenses to each participant. d.Expenses incurred by a Director, other than reimbursable expenses, including, but not limited to expenses of the Director’s spouse, family members, or guests, are the responsibility of the Director. e.Each Director shall provide a brief report on meetings attended at the expense of the District at the next regular meeting of the Board of Directors [Government Code Section 53232.3(d)]. The report may be provided verbally during the “Directors Reports” section of the meeting orand submitted in writing to the District Secretary on the “Board of Directors Meetings Attended Form” (Exhibit E). Written reports will be filed with the minutes of the meeting and become part of the board records. f.All documents related to reimbursable District expenditures are public records subject to disclosure under the California Public Records Act. [Government Code Section 53232.3(d)]. g.The District shall, at least annually, provide a report to disclose any reimbursement paid by the District within the immediately preceding fiscal year of at least $100 for each individual charge for services or product received. “Individual charge” (as defined in California Government Code Section 53065.5) includes, but is not limited to, one meal, lodging for one day, transportation, or a registration fee. D.District Group Insurance Benefits OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/2/25 4/1/26 Page 7 of 7 1. Each Director, while serving as a member of the Board of Directors, shall be entitled to the health and welfare and life insurance benefits set forth in the Schedule of Benefits in the District Group Insurance Plan Booklet, which benefits are furnished by the District at District cost, with applicable contributions, for active District employees and Directors. Each active Director shall also be entitled to a $65,000 term life and accidental death and dismemberment insurance policy (subject to policy requirements and any standard age reduction schedule), a $100,000 travel accidental death and dismemberment policy. In addition to the foregoing, the District will pay premiums for additional individual life insurance coverage in an amount of up to $250,000 for a 20- year term for those active Directors who apply for such coverage with the District’s provider and meet the provider’s standard underwriting guidelines and policy requirements. If coverage at higher amounts or for a longer term is made available by the provider, each Director may purchase such additional coverage on a self-pay basis. 2. Each former member of the Board of Directors, who served in office after January 1, 1981, who was elected to a term of office that began before January 1, 1995, who is at least 60 years of age, and whose total service at the time of termination is not less than 12 years, shall be entitled to the health and welfare and life insurance benefits set forth in the District Group Insurance Plan Booklet, which benefits are furnished by the District, at District cost, for retired Directors. E. Miscellaneous 1.The General Manager shall submit the District’s organizational membership list, which the Board shall review annually in January following reorganization of the Board and election of a new Board President. 2.Cell Pphone expenses are not considered a reimbursable expense. Attachments: Exhibit A: Approved Functions List Exhibit B: “Board of Directors Per Diem and Mileage Claim Form” Exhibit C: “Board of Directors Travel Request Form” Exhibit D: “Board of Directors Expense Claim Form” Exhibit E: “Board of Directors Meetings Attended Form” EXHIBIT A Approved Functions List Board Policy for payment of per diem compensation and expenses for Director attendance at District meetings: The Board reviews its authorization and policy for payment of per diem compensation for pre-approved meetings annually, in January following reorganization of the Board and election of a new Board President. Below is the current Board policy: 1.The following meetings are pre-approved for all Directors to attend and receive per diem compensation and expense reimbursement: a)Otay Water District (District) Regular and Special Board Meetings b)OtayDistrict committee meetings for committee members only c)OtayDistrict business meetings called by the General Manager or the Board President, or authorized by the Board President where individual Directors are requested to attend d)Except as otherwise specifically excluded in this policy, official District functions that take place during normal business hours where Directors are requested to attend by either the Board President or the Board e)District sponsored events or events where the District sponsors a table and the Board President or the General Manager extends invitations to Directors to attend the event f)Semi-annual conference of the Association of California Water Agencies (ACWA) g)Regularly quarterlymonthly meeting of Council of Water Utilities Committee h)Business meetings and conferences of the California Special District Association (CSDA) held in San Diego County i)Up to four (4) board meetings of the San Diego County Water Authority (CWA) per calendar year EXHIBIT A j)Up to one (1) board meeting of the Metropolitan Water District per calendar year k)Business or Board Meetings of regional and/or local Chambers of Commerce, where the District maintains a membership or whose geographical area includes the District’s service area, and the meeting includes discussions that are water and wastewater-industry related All other meetings not listed here require pre-approval by the Board President or Board for Directors to receive per diem compensation and/or expense reimbursement. 2.The following meetings are pre-approved for designated Otay Director representatives or designated alternate. The District Secretary will maintain an updated list of designated Director representatives. Any other Director who wishes to attend these meetings and receive a per diem must have approval from the Board President or the Board prior to the event or be designated by the Board President or Board, as an alternate. The pre-approval shall include the attendance of the Director at the commission, committee, board or meeting and any committee, subcommittee or other official or posted meeting of the agencies, commissions, committees, or boards listed below: a)Planning Group and government agency meetings that fall within the boundaries of each Directors district (when issues impacting OWDthe District are discussed) b)Inter-Agency Committee Meeting c)MetroMETRO (TAC/AFFORD) Commission d)ACWA or CSDA meetings/conferences e)Water Conservation Garden f)WateReuse Association g)South County Economic Development Council 3.The Board President or his designee is pre-authorized to attend District business meetings with cities and other agencies to represent Otay Waterthe District and may claim a per diem and expenses. Any other Director desiring to attend the same meeting of this nature would require EXHIBIT A approval to attend from the Board President or the Board in order to receive a per diem and expense reimbursement. 4.When the Board President or the Board appoints a Director(s) to a committee, the meeting(s) shall be considered pre-approved for per diem and expense reimbursement. 5.The following meetings are not eligible for pre-approved per diem claims: a)Attending other Districts’ Board meetings, unless there is a matter on their agenda that is related to OtayDistrict business b)OtayDistrict employee appreciation breakfast, luncheons or dinners c)Retirement receptions d)OtayDistrict picnics or dinner-dances or other purely social events e)If a per diem reimbursement is offered by another agency (i.e., CWASan Diego County Water Authority and/or the Metro Commission) f)First FridayMonthly Breakfasts unless presenting OtayDistrict official business to the assembly g)Any political campaign event or function 6.In order to submit a per diem/travel reimbursement the memberDirector must attend at least 50% of the meeting (per day) and the reimbursement request must be submitted within 45 days of the occurrence, otherwise it may be considered attended without per diem. The Board President of the Board will make the final determination. 7.All other meetings/conferences/tours/seminars/ workshops/functions not listed in this policy must be pre- approved by the Board President or the Board. EXHIBIT B (Director’s Signature) GM Receipt: Date: FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ INSTRUCTIONS ON REVERSE OTAY WATER DISTRICT BOARD OF DIRECTORS PER DIEM AND MILEAGE CLAIM FORM Pay To: Period Covered: Employee Number: From: To: ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED MILEAGE HOME to OWD OWD to HOME MILEAGE OTHER LOCATIONS Total Meeting Per Diem: $ ($190$181 per meeting) Total Mileage Claimed: miles EXHIBIT B INSTRUCTIONS FOR PREPARATION OF BOARD OF DIRECTORS PER DIEM CLAIM FORM 1.Record the date, and name or purpose/issues discussed of meeting attended on behalf of the District. Note: The District will pay Director's per diem for one meeting/function per day and the maximum of 10 meetings/functions per month. If a Director attends more than 10 meetings/functions (10 days), the District will reimburse for the mileage and any reimbursable out-of-pocket expenses incurred for these additional meetings. 2.Record number of miles (round trip) driven to attend meeting/function. The use of personal vehicles in the conduct of official District business shall be reimbursed at the current Internal Revenue Service rate. The Director's expense claim should indicate the nature of the trip. If a trip begins at home, the District will reimburse the mileage from home to destination and return mileage. District insurance does not cover personal vehicles while they are being driven on District business. The reimbursement rate is inclusive of an allowance for insurance costs. The District will reimburse Directors for the deductible under their personal insurance policy should they be involved in an accident while on District business. To be eligible for reimbursement, each Director shall maintain a current California driver’s license and at least the minimum vehicle liability insurance required by State law or shall arrange for a driver who meets said standards. The District will not reimburse the cost of travel of a personal nature taken in conjunction with travel on official business. Claim forms shall be submitted within 45 calendar days after the meeting date. Expense claims requiring reimbursement to the District which are not reconciled within 45 calendar days, shall be deducted from the next month’s reimbursement. No information on the Per Diem Claim Form may be designated as confidential in nature. All expenses must be fully disclosed on the form. OTAY WATER DISTRICT BOARD OF DIRECTORS TRAVEL REQUEST FORM Director: Date of Request: Name and Location of Function: Date(s) function to be held: - Date(s) of travel (flight & lodging): - Sponsoring Organization: Request for Prepayment of Fees Related to the Function: Expense Type Not Needed Pre-Payment Requested Registration Airline Auto Rental Mileage N/A Taxi/Shuttle N/A Lodging Meals N/A Other Expenses – Explain Below Comments: Explanation of Other Expenses: Signature of Director For Office Use Only Below This Line Date of Board President Approval: Expense Type Description Amount Pre- Paid (Estimate) Registration Airline Auto Rental Mileage N/A Taxi/Shuttle N/A Lodging Meals N/A Other Expenses District Secretary Date Processed EXHIBIT C EXHIBIT D OTAY WATER DISTRICT BOARD OF DIRECTORS EXPENSE CLAIM FORM Pay To: Period Covered: Employee Number: From: To: ITEMIZED REIMBURSEMENT CLAIMED Date Type of Reimbursement Amount TOTAL Reimbursement Claimed: $ Director Signature: Date: GM Receipt: Date: INSTRUCTIONS ON REVERSE Exhibit E INSTRUCTIONS FOR PREPARATION OF BOARD OF DIRECTORS EXPENSE CLAIM FORM The necessary expenses incurred while traveling on District business including common carrier fares (economy class), automobilecar rental charges, District business telephone calls, lodging, baggage handling fees, parking fees, meals, etc. will be reimbursed when documented on the Director's Per Diem and Expense Claim Forms. Receipts must be attached for all meal expenses. If a receipt is lost, the lost receipt should be noted next to the expense and submitted to the Board President before any reimbursement can be made. Receipts are required for the reimbursement of all expenses. All receipts must have the nature of the expense and the business purpose noted on the receipt. The District will not reimburse the cost of travel of a personal nature taken in conjunction with travel on official business. Meals shall be reimbursed as per section 3, Meals and Lodging, of this policy (Policy 8). Any receipts that include costs of personal travel (e.g., hotel receipt for employee and spouse) should identify what the cost would have been without personal travel (e.g., single room rate as opposed to double room rate). Claim forms shall be submitted within 45 calendar days after the expense iswas incurred. Expense claims requiring reimbursement to the District which are not reconciled within 45 calendar days, shall be deducted from the next month’s reimbursement. No information on the Expense Claim Form may be designated as confidential in nature. All expenses must be fully disclosed on the form. The following expenses are not reimbursable: a. Alcoholic Beverages e. Entertainment or recreation b. Parking or traffic violations f. Expenses incurred by spouses, family members, or guests. c. In-room movies g. Cell phone expenses d. Laundry service EXHIBIT D EXHIBIT E Board of Directors Meetings Attended Form Director Name: Period Covered: From: To: Item No. Date Meeting Attended Description 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. -Instructions on Reverse - EXHIBIT E Instructions for the Preparation of the Board of Directors Meetings Attended Form 1.Enter the period (dates) of the meetings that will be reported on the form. 2.Record the date, name/purpose of meeting, and issues discussed at the meeting(s) attended on behalf and expense of the District. Board of Directors Meetings Attended Forms shall be submitted to the District Secretary prior to or on the date of the next regular board meeting that follows the dates of the meetings reported on this form. No information on the form may be designated as confidential in nature. This form will be filed with the minutes of the meeting and become part of the board records. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/1/26 Page 1 of 7 Purpose To provide guidelines for payment of compensation and reimbursement of expenses to Directors in connection with their attendance at meetings or the performance of other authorized business, and for group insurance benefits for Directors. Background Members of the Board of Directors (Directors) attend regular, adjourned or special meetings of the Board of Directors (Board). In addition, Directors attend other Otay Water District (District) meetings, committee meetings, association meetings, and educational seminars on behalf of the District. These meetings and seminars are related to District business, water and wastewater, water and wastewater related issues, and California special districts. State statutes authorize District payments for attendance at meetings and reimbursements of expenses incurred. State law also authorizes the District to provide health and welfare benefits for active Directors and, in limited circumstances, retired Directors if they served 12 years and were first elected prior to January 1, 1995. The District is also authorized to offer health and welfare benefits for retired Directors who commenced office on or after January 1, 1995, if the recipient participates on a self-pay basis. Policy The District will compensate Directors on a per diem basis for attendance at authorized meetings or functions and will reimburse Directors for reasonable expenses incurred while traveling on District business to include lodging, dining, transportation, and related incidentals. A. Directors’ Per Diem As provided in Section 1.01 C. of the District Code of Ordinances, each Director shall receive a per diem in the amount of $190 (effective July 1, 2026) for each day of attendance at meetings of the Board or for each day of service rendered as a Director by request or authorization of the Board, not to exceed a total of ten (10) days in any calendar month. Attendance at any meeting shown on Exhibit A to this Policy shall be deemed a meeting requested or authorized by the Board. Attendance at meetings shall be in accordance with Exhibit A. The Board President or the Board may authorize a Director to attend meetings not listed in Exhibit A when the Board President or the Board determines that it is in the interest of the District that a Director attend, and that such attendance be compensated and expenses reimbursed. Directors’ EXHIBIT 2 OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/1/26 Page 2 of 7 claims for per diem amounts shall be made on the “Board of Directors Per Diem and Mileage Claim Form” (Exhibit B). The Board President or the Board may approve reimbursement of expenses outside the per diem limit for a Director if the Director submits receipts for all the related District business expenses. The Board President or the Board may restrict a Director’s ability to receive a per diem for meeting attendance if the Director engages in misconduct. Said restriction may apply to pre-approved meetings as listed on Exhibit A of this policy (see Board Policy 40: Ethics). Attendance at a meeting that is not authorized by this policy (pre- approved meetings) or pre-approved by the Board President may be approved by the Board for per diem compensation. Directors seeking per diem compensation for these meetings shall request that the item be presented to the Board at its next regularly scheduled meeting for consideration. The decision of the Board shall be final. When travel arrangements require a day earlier arrival or a day later departure, Directors will be eligible for the $190 per diem and reasonable expenses associated with the extended stay will be reimbursed as specified below. B.Pre-payment of Otherwise Reimbursable Expenses The Director may request pre-payment of registration, transportation, and lodging using the “Board of Directors Travel Request Form” (Exhibit C). Pre-payments shall be limited to the Directors’ expenses only. No advances shall be made on travel expenses. C.Reimbursement of Expenses Each Director shall be reimbursed for travel expenses to and from the meetings described in Exhibit A or for any other authorized District business as follows: 1.Authorization Travel associated with the attendance of meetings or functions for Directors shall be approved in advance by the Board President. To request approval of travel, the Director should complete the “Board of Directors Travel Request Form” (Exhibit C) in order to be eligible for compensation and/or reimbursement. Travel requests will be reviewed and approved by the Board President or the Board. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/1/26 Page 3 of 7 2.Transportation a.Air Transportation The District will endeavor to purchase airline tickets in advance, taking advantage of discounts and low airfares. b.Automobile 1.Personal Auto: Directors may use their personal vehicle. The District will reimburse Directors at the current rate/mile as established by the IRS, plus tolls, parking, etc., provided, however, if air transportation is available, the total amount of expense paid shall be limited to the cost of economy class air travel between points traveled by personal vehicle. Gasoline, collision and liability insurance, and maintenance will be provided by the Director and is deemed covered in the rate/mileage reimbursement. Directors using personal vehicles on District business must maintain a valid California driver’s license and the automobile insurance coverage required by the State of California or make arrangements for a driver who meets the above requirements. 2.Rental Cars: Directors shall endeavor to use public transportation, taxi, or a ride-sharing service whenever possible. In the event that a rental car is needed for District business, the District will pre-pay or reimburse Directors for the rental car expenses. Gasoline expenses required for District business travel will be eligible for reimbursement. Such rental car shall be a compact or mid- size class unless upgrades are offered at no additional cost to the District. c.Miscellaneous Transportation Whenever practicable, bus, taxi, rail, shuttle, or ride- sharing service transportation may be used in lieu of, or in conjunction with, the modes above. 3.Meals and Lodging a.Meals and Beverages Whenever travel requires meals, the meals, including gratuity, OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/1/26 Page 4 of 7 shall be reimbursable, provided the Director presents a receipt along with the “Board of Directors Expense Claim Form” (Exhibit D) for all meals. Reimbursements for expense items where a receipt has been lost will not be paid until the Board President or the Board has reviewed and approved the expense item. Meals are reimbursable based on the Meals and Incidental Expenses (M&IE) as updated by the U.S. General Services Administration: 1.Full Day Reimbursement When a Director is traveling for a full day and no meals are provided for by other sources, such as pre-paid registration, the Director may be reimbursed for meal expenses at the rate provided by the M&IE per day, or amounts determined by the Board President or the Board to be reasonable for the occasion or circumstances. 2.Single Meal Reimbursement When a Director requires reimbursement for a single meal while traveling, the maximum meal reimbursement amount shall be at a rate provided by the M&IE for breakfast, lunch, and/or dinner, or amounts determined by the Board President or the Board to be reasonable for the occasion or circumstances. 3.Partial Day Reimbursement When a Director will be traveling for a partial day or where a single meal is provided for by other sources such as pre- paid registration, the maximum reimbursement amount shall be at the rate provided by the M&IE per meal, or such other amounts as may be determined by the Board President or the Board to be reasonable for the occasion or circumstances. 4.Taxes The maximum meal reimbursement amounts are inclusive of and assume expenses for taxes and gratuities. b.Lodging The District will reimburse Directors or pre-pay accommodations in single rooms at conference facilities or in close proximity when applicable. Or, in the absence of conference accommodations, normal single-room business, government or commercial class accommodation may be obtained. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/1/26 Page 5 of 7 Under normal circumstances, lodging will not be reimbursed for the night before a conference starts and the night after it ends. However, in situations where available travel schedules would require the Director to leave home before 6:00 AM or return home after 12:00 AM, lodging for the night before or the night after will be reimbursable. 4.Entertainment The District shall not cover any expenses incurred for recreation or entertainment. 5.Incidental Expenses Unavoidable, necessary, and reasonable authorized expenses will be fully reimbursed by the District. Some examples of allowable expenses are: a.Reasonable transportation to local restaurants and to optional functions that are a part of conference events. b.Conference and hotel parking fees. c.Reasonable gratuities. d.The following expenses are not reimbursable: 1.Alcoholic beverages 2.Parking or traffic violations 3.In-room movies or laundry services 4.Expenses incurred by spouses, family members, or guests. 6.Directors’ Responsibility a.Directors must submit a detailed “Board of Directors Expense Claim Form” (Exhibit D) for reimbursement. Claim forms should be supported by vouchers and itemized receipts of expenditures for which reimbursement is being requested. Receipts must be attached for all expenses. If a receipt is lost, the lost receipt must be noted on the “Board of Directors Expense Claim Form” (Exhibit D) and approved by the Board President or the Board before any payment can be made. Claim forms shall be submitted within 45 calendar days after the expense is incurred. Expense claims requiring reimbursement to the District, which are not reconciled within 45 calendar days, shall be deducted from the next month’s reimbursement. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/1/26 Page 6 of 7 b.Expenses will not be reimbursed for meetings that have been pre-paid and not attended. The Board President or the Board may excuse an absence for a meeting. The absent Director shall provide a verbal or written report at the next regularly scheduled Board meeting stating the reason for the absence and, if appropriate, request that it be excused. Directors will be required to reimburse the District for any pre-paid expenses for any unexcused absence. This reimbursement will be made by deduction from future expenditures. c.When two (2) or more Directors combine an expense on one receipt, the Director requesting reimbursement should indicate, on or attached to the Director’s “Board of Directors Expense Claim Form”, the identity of the other Director(s) sharing expenses. This will facilitate appropriate allocation of expenses to each participant. d.Expenses incurred by a Director, other than reimbursable expenses, including, but not limited to expenses of the Director’s spouse, family members, or guests, are the responsibility of the Director. e.Each Director shall provide a brief report on meetings attended at the expense of the District at the next regular meeting of the Board of Directors [Government Code Section 53232.3(d)]. The report may be provided verbally during the “Directors Reports” section of the meeting and submitted in writing to the District Secretary on the “Board of Directors Meetings Attended Form” (Exhibit E). Written reports will be filed with the minutes of the meeting and become part of the board records. f.All documents related to reimbursable District expenditures are public records subject to disclosure under the California Public Records Act [Government Code Section 53232.3(d)]. g.The District shall, at least annually, provide a report to disclose any reimbursement paid by the District within the immediately preceding fiscal year of at least $100 for each individual charge for services or product received. “Individual charge” (as defined in California Government Code Section 53065.5) includes, but is not limited to, one meal, lodging for one day, transportation, or a registration fee. D.District Group Insurance Benefits OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/1/26 Page 7 of 7 1. Each Director, while serving as a member of the Board of Directors, shall be entitled to the health and welfare and life insurance benefits set forth in the Schedule of Benefits in the District Group Insurance Plan Booklet, which benefits are furnished by the District at District cost, with applicable contributions, for active District employees and Directors. Each active Director shall also be entitled to a $65,000 term life and accidental death and dismemberment insurance policy (subject to policy requirements and any standard age reduction schedule), a $100,000 travel accidental death and dismemberment policy. In addition to the foregoing, the District will pay premiums for additional individual life insurance coverage in an amount of up to $250,000 for a 20-year term for those active Directors who apply for such coverage with the District’s provider and meet the provider’s standard underwriting guidelines and policy requirements. If coverage at higher amounts or for a longer term is made available by the provider, each Director may purchase such additional coverage on a self-pay basis. 2. Each former member of the Board of Directors, who served in office after January 1, 1981, who was elected to a term of office that began before January 1, 1995, who is at least 60 years of age, and whose total service at the time of termination is not less than 12 years, shall be entitled to the health and welfare and life insurance benefits set forth in the District Group Insurance Plan Booklet, which benefits are furnished by the District, at District cost, for retired Directors. E. Miscellaneous 1.The General Manager shall submit the District’s organizational membership list, which the Board shall review annually in January following reorganization of the Board and election of a new Board President. 2.Cell phone expenses are not considered a reimbursable expense. Attachments: Exhibit A: Approved Functions List Exhibit B: “Board of Directors Per Diem and Mileage Claim Form” Exhibit C: “Board of Directors Travel Request Form” Exhibit D: “Board of Directors Expense Claim Form” Exhibit E: “Board of Directors Meetings Attended Form” EXHIBIT A Approved Functions List Board Policy for payment of per diem compensation and expenses for Director attendance at District meetings: The Board reviews its authorization and policy for payment of per diem compensation for pre-approved meetings annually, in January following reorganization of the Board and election of a new Board President. Below is the current Board policy: 1.The following meetings are pre-approved for all Directors to attend and receive per diem compensation and expense reimbursement: a)Otay Water District (District) Regular and Special Board Meetings b)District committee meetings for committee members only c)District business meetings called by the General Manager or the Board President, or authorized by the Board President where individual Directors are requested to attend d)Except as otherwise specifically excluded in this policy, official District functions that take place during normal business hours where Directors are requested to attend by either the Board President or the Board e)District sponsored events or events where the District sponsors a table and the Board President or the General Manager extends invitations to Directors to attend the event f)Semi-annual conference of the Association of California Water Agencies (ACWA) g)Regular quarterly meeting of Water Utilities Committee h)Business meetings of the California Special District Association (CSDA) held in San Diego County i)Up to four (4) board meetings of the San Diego County Water Authority (CWA) per calendar year j)Up to one (1) board meeting of the Metropolitan Water District per calendar year EXHIBIT A k)Business or Board Meetings of regional and/or local Chambers of Commerce, where the District maintains a membership or whose geographical area includes the District’s service area, and the meeting includes discussions that are water and wastewater-industry related All other meetings not listed here require pre-approval by the Board President or Board for Directors to receive per diem compensation and/or expense reimbursement. 2.The following meetings are pre-approved for designated Otay Director representatives or designated alternate. The District Secretary will maintain an updated list of designated Director representatives. Any other Director who wishes to attend these meetings and receive a per diem must have approval from the Board President or the Board prior to the event or be designated by the Board President or Board, as an alternate. The pre-approval shall include the attendance of the Director at the commission, committee, board or meeting and any committee, subcommittee or other official or posted meeting of the agencies, commissions, committees, or boards listed below: a)Planning Group and government agency meetings that fall within the boundaries of each Directors district (when issues impacting the District are discussed) b)Inter-Agency Committee Meeting c)Metro (TAC/AFFORD) Commission d)ACWA or CSDA meetings/conferences e)Water Conservation Garden f)WateReuse Association g)South County Economic Development Council 3.The Board President or his designee is pre-authorized to attend District business meetings with cities and other agencies to represent the District and may claim a per diem and expenses. Any other Director desiring to attend the same meeting of this nature would require approval to attend from the Board President or the Board in order to receive a per diem and expense reimbursement. EXHIBIT A 4.When the Board President or the Board appoints a Director(s) to a committee, the meeting(s) shall be considered pre-approved for per diem and expense reimbursement. 5.The following meetings are not eligible for pre-approved per diem claims: a)Attending other Districts’ Board meetings, unless there is a matter on their agenda that is related to District business b)District employee appreciation breakfast, luncheons or dinners c)Retirement receptions d)District picnics or dinner-dances or other purely social events e)If a per diem reimbursement is offered by another agency (i.e., CWA and/or the Metro Commission) f)Monthly Breakfasts unless presenting District official business to the assembly g)Any political campaign event or function 6.In order to submit a per diem/travel reimbursement the Director must attend at least 50% of the meeting (per day) and the reimbursement request must be submitted within 45 days of the occurrence, otherwise it may be considered attended without per diem. The Board President will make the final determination. 7.All other meetings/conferences/tours/seminars/ workshops/functions not listed in this policy must be pre- approved by the Board President or the Board. EXHIBIT B (Director’s Signature) GM Receipt: Date: FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ INSTRUCTIONS ON REVERSE OTAY WATER DISTRICT BOARD OF DIRECTORS PER DIEM AND MILEAGE CLAIM FORM Pay To: Period Covered: Employee Number: From: To: ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED MILEAGE HOME to OWD OWD to HOME MILEAGE OTHER LOCATIONS Total Meeting Per Diem: $ ($190 per meeting) Total Mileage Claimed: miles EXHIBIT B INSTRUCTIONS FOR PREPARATION OF BOARD OF DIRECTORS PER DIEM CLAIM FORM 1.Record the date, and name or purpose/issues discussed of meeting attended on behalf of the District. Note: The District will pay Director's per diem for one meeting/function per day and the maximum of 10 meetings/functions per month. If a Director attends more than 10 meetings/functions (10 days), the District will reimburse for the mileage and any reimbursable out-of-pocket expenses incurred for these additional meetings. 2.Record number of miles (round trip) driven to attend meeting/function. The use of personal vehicles in the conduct of official District business shall be reimbursed at the current Internal Revenue Service rate. The Director's expense claim should indicate the nature of the trip. If a trip begins at home, the District will reimburse the mileage from home to destination and return mileage. District insurance does not cover personal vehicles while they are being driven on District business. The reimbursement rate is inclusive of an allowance for insurance costs. The District will reimburse Directors for the deductible under their personal insurance policy should they be involved in an accident while on District business. To be eligible for reimbursement, each Director shall maintain a current California driver’s license and at least the minimum vehicle liability insurance required by State law or shall arrange for a driver who meets said standards. The District will not reimburse the cost of travel of a personal nature taken in conjunction with travel on official business. Claim forms shall be submitted within 45 calendar days after the meeting date. Expense claims requiring reimbursement to the District which are not reconciled within 45 calendar days, shall be deducted from the next month’s reimbursement. No information on the Per Diem Claim Form may be designated as confidential in nature. All expenses must be fully disclosed on the form. OTAY WATER DISTRICT BOARD OF DIRECTORS TRAVEL REQUEST FORM Director: Date of Request: Name and Location of Function: Date(s) function to be held: - Date(s) of travel (flight & lodging): - Sponsoring Organization: Request for Prepayment of Fees Related to the Function: Expense Type Not Needed Pre-Payment Requested Registration Airline Auto Rental Mileage N/A Taxi/Shuttle N/A Lodging Meals N/A Other Expenses – Explain Below Comments: Explanation of Other Expenses: Signature of Director For Office Use Only Below This Line Date of Board President Approval: Expense Type Description Amount Pre- Paid (Estimate) Registration Airline Auto Rental Mileage N/A Taxi/Shuttle N/A Lodging Meals N/A Other Expenses District Secretary Date Processed Exhibit C Exhibit D OTAY WATER DISTRICT BOARD OF DIRECTORS EXPENSE CLAIM FORM Pay To: Period Covered: Employee Number: From: To: ITEMIZED REIMBURSEMENT CLAIMED Date Type of Reimbursement Amount TOTAL Reimbursement Claimed: $ Director Signature: Date: GM Receipt: Date: INSTRUCTIONS ON REVERSE Exhibit E INSTRUCTIONS FOR PREPARATION OF BOARD OF DIRECTORS EXPENSE CLAIM FORM The necessary expenses incurred while traveling on District business including common carrier fares (economy class), car rental charges, lodging, baggage handling fees, parking fees, meals, etc. will be reimbursed when documented on the Director's Per Diem and Expense Claim Forms. Receipts must be attached for all meal expenses. If a receipt is lost, the lost receipt should be noted next to the expense and submitted to the Board President before any reimbursement can be made. Receipts are required for the reimbursement of all expenses. All receipts must have the nature of the expense and the business purpose noted on the receipt. The District will not reimburse the cost of travel of a personal nature taken in conjunction with travel on official business. Meals shall be reimbursed as per section 3, Meals and Lodging, of this policy (Policy 8). Any receipts that include costs of personal travel (e.g., hotel receipt for employee and spouse) should identify what the cost would have been without personal travel (e.g., single room rate as opposed to double room rate). Claim forms shall be submitted within 45 calendar days after the expense is incurred. Expense claims requiring reimbursement to the District which are not reconciled within 45 calendar days, shall be deducted from the next month’s reimbursement. No information on the Expense Claim Form may be designated as confidential in nature. All expenses must be fully disclosed on the form. The following expenses are not reimbursable: a. Alcoholic Beverages e. Entertainment or recreation b. Parking or traffic violations f. Expenses incurred by spouses, family members, or guests c. In-room movies g. Cell phone expenses d. Laundry service EXHIBIT D Exhibit E Board of Directors Meetings Attended Form Director Name: Period Covered: From: To: Item No. Date Meeting Attended Description 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. -Instructions on Reverse - Exhibit E Instructions for the Preparation of the Board of Directors Meetings Attended Form 1.Enter the period (dates) of the meetings that will be reported on the form. 2.Record the date, name/purpose of meeting, and issues discussed at the meeting(s) attended on behalf and expense of the District. Board of Directors Meetings Attended Forms shall be submitted to the District Secretary prior to or on the date of the next regular board meeting that follows the dates of the meetings reported on this form. No information on the form may be designated as confidential in nature. This form will be filed with the minutes of the meeting and become part of the board records. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: April 1, 2026 PROJECT: Various DIV. NO. ALL SUBMITTED BY: Jose Martinez General Manager APPROVED BY: Jose Martinez, General Manager SUBJECT: ADOPT RESOLUTION #4472 TO REVISE AND UPDATE BOARD POLICY #29, “CLAIMS HANDLING PROCEDURE” GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) adopt Resolution #4472 to approve revisions to update Board Policy #29, “Claims Handling Procedure”, to address inflation and the increasing costs associated with property damage, materials, labor, and related services, and to promote efficient, timely, and consistent claims handling. COMMITTEE ACTION: See “Attachment A”. PURPOSE: To request that the Board adopt Resolution #4472 to approve revisions to update Board Policy #29, “Claims Handling Procedure”, due to inflation and the increasing costs associated with property damage, materials, labor, and related services. ANALYSIS: The District periodically reviews and updates its Board policies as needed or required. Following a review of Board Policy #29, “Claims Handling Procedure”, and consultation with General Counsel, staff recommends revising the policy to reflect current conditions. Due to inflation and the increasing costs associated with property damage, materials, labor, and related services, the District’s current AGENDA ITEM 8a claims authority threshold may no longer reflect the typical value of minor claims. As a result, claims that were historically considered routine now require Board action, which can delay resolution and increase administrative workload. Increasing the claims authority will allow staff to resolve lower-value claims more efficiently and in a timely manner while maintaining appropriate oversight and accountability. This adjustment will help streamline the claims process and reduce administrative delays. Additionally, pursuant to Government Code Section 935.4, the District may delegate by resolution its claim-handling duties under the Government Claims Act and other applicable law to a designated employee. Revisions proposed at this time are detailed in the attached strike- through version of the policy (Attachment C). Based on the above, staff recommends that the Board adopt Resolution #4472 (Attachment B) in support of the proposed revisions. FISCAL IMPACT: Joe Beachem, Chief Financial Officer There is no direct fiscal impact associated with this action. The proposed change would only modify the level of authority for approving claims and would not increase the District’s overall liability or claims expenditures. STRATEGIC GOAL: Improve organization effectiveness. LEGAL IMPACT: None. ATTACHMENTS: Attachment A – Committee Action Report Attachment B – Resolution #4472 Exhibit 1 – Board Policy #29, “Claims Handling Procedure” Attachment C - Recommended Revisions to Board Policy #29, “Claims Handling Procedure” Attachment D – Proposed Copy of Board Policy #29, “Claims Handling Procedure” ATTACHMENT A SUBJECT/PROJECT: ADOPT RESOLUTION #4472 TO REVISE AND UPDATE BOARD POLICY #29, “CLAIMS HANDLING PROCEDURE” COMMITTEE ACTION: The Conservation, Public Relations, Legal & Legislative Committee reviewed this item at a meeting held on March 18, 2026, and the following comments were made: •Staff indicated that the CPI-based claims authority threshold increased from $10,000 to $25,000, which was established in 1995 and last updated in 2011. •Staff indicated that the proposed delegation also authorizes the rejection of certain claims handled by ACWA JPIA for legal/contractual reasons (e.g., statute deadlines and administrative requirements), as required under their agreement. This approach is intended to ensure the majority of the work is conducted in public, maintaining transparency while adhering to ACWA JPIA’s contractual obligations. Upon completion of the discussion, the Committee supported staffs’ recommendations and presentation to the full board as a consent item. RESOLUTION NO. 4472 RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING POLICY NO. 29, CLAIMS HANDLING PROCEDURE, OF THE DISTRICT’S CODE OF ORDINANCES WHEREAS, it is the policy of the District to establish procedures to review policies, procedures, ordinances, and resolutions periodically to ensure they are current and relevant; and WHEREAS, District staff has identified Board Policy No. 29, Claims Handling Procedure, as requiring revisions as per the attached strikethrough copy (Exhibit 1); and WHEREAS, the Otay Water District Board of Directors has been presented with the proposed amendments to Policy No. 29, Claims Handling Procedure, of the District’s Code of Ordinances; and WHEREAS, the amendments have been reviewed and considered by the Board, and it is in the interest of the District to adopt the amended Policy No. 29, Claims Handling Procedure; WHEREAS, pursuant to Government Code Section 935.4, the Otay Water District may delegate by resolution its claim-handling duties to an employee presented under the Government Claims Act and other applicable law; WHEREAS, Government Code section 945.4 provides that no suit for money or damages may be brought against a public entity until a written claim has been presented and acted upon by the board, or has been deemed to have been rejected by the board; WHEREAS, the Board of the Otay Water District delegates this authority to the General Manager to promote efficient, timely, and consistent claim handling; ATTACHMENT B WHEREAS, the authority of the General Manager or their designee, would entail sending notices of insufficiency, notices of rejection, and rejecting claims on the merit; NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED by the Board of Directors of the Otay Water District that the amended Policy No. 29, incorporated herein as Exhibit 1, is hereby adopted. BE IT RESOLVED that this resolution shall be in full force and effect immediately after its passage and approval. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular board meeting held on this 1st day of April 2026, by the following vote: Ayes: Noes: Abstain: Absent: President ATTEST: District Secretary OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised CLAIMS HANDLING PROCEDURE 29 09/ 06/95 03/02/11 Page 1 of 1 PURPOSE To establish a policy for handling claims filed against the District. BACKGROUND California Government Code Sections 935 et seq. authorize the District to establish procedures for handling claims and to delegate to the General Manager the authority to settle or deny claims up to certain amounts. POLICY The Board of Directors authorizes the General Manager, after consultation with the General Counsel, to allow or reject claims up to the amount of $10,000. The General Manager shall report to the Board, as an information item, all actions taken on claims within his authority at the Board's next regular meeting. EXHIBIT 1 OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised CLAIMS HANDLING PROCEDURE 29 9/6/95 3/2/11 4/1/26 Page 1 of 1 PURPOSE To establish a policy for handling claims filed against the Otay Water District (District). BACKGROUND California Government Code Sections 935 et seq. authorizes the District to establish procedures for handling claims and to delegate to the General Manager the authority to settle or deny claims up to certain amounts. POLICY The Board of Directors (Board) authorizes the General Manager, after consultation with the General Counsel, to acceptallow or reject claims up to the amount of $25,000;10,000. or, reject claims and/or return claims that are insufficient, without action. The Board delegates said authority to the General Manager to reject claims for the purpose of limiting the statute of limitations. The Board delegates the same authority to the General Manager for any claims that are required by the claims management company to be rejected by the District. Such claims are managed and ultimately paid out by the claims management company. The General Manager or General Counsel shall report to the Board, within 60 daysas an information item, all actions taken on claims within his their authority at the Board's next regular meeting. ATTACHMENT C OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised CLAIMS HANDLING PROCEDURE 29 9/6/95 4/1/26 PURPOSE To establish a policy for handling claims filed against the Otay Water District (District). BACKGROUND California Government Code Sections 935 et seq. authorizes the District to establish procedures for handling claims and to delegate to the General Manager the authority to settle or deny claims up to certain amounts. POLICY The Board of Directors (Board) authorizes the General Manager, after consultation with General Counsel, to accept claims up to the amount of $25,000; or, reject claims and/or return claims that are insufficient, without action. The Board delegates said authority to the General Manager to reject claims for the purpose of limiting the statute of limitations. The Board delegates the same authority to the General Manager for any claims that are required by the claims management company to be rejected by the District. Such claims are managed and ultimately paid out by the claims management company. The General Manager or General Counsel shall report to the Board, within 60 days, all actions taken on claims within their authority. ATTACHMENT D STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: April 1, 2026 SUBMITTED BY: Suzie Lawson Human Resources Manager PROJECT: Various DIV. NO. ALL APPROVED BY: Kevin Koeppen, Chief, Administrative Services Jose Martinez, General Manager SUBJECT: AUTHORIZE THE GENERAL MANAGER TO ENTER INTO A PROFESSIONAL SERVICES AGREEMENT FOR A CLASSIFICATION AND TOTAL COMPENSATION AND BENEFITS STUDY WITH REWARD STRATEGY GROUP, INC. (RSG) IN AN AMOUNT NOT TO EXCEED $119,480 GENERAL MANAGER’S RECOMMENDATION: That the Board authorize the General Manager to enter into a professional services agreement with Reward Strategy Group, Inc. (RSG) for a classification and total compensation and benefits study for a total amount not-to-exceed $119,480. COMMITTEE ACTION: Please see “Attachment A”. PURPOSE: To authorize the General Manager to enter into a professional services agreement with RSG for a classification and total compensation and benefits study for a total amount not-to-exceed $119,480. ANALYSIS: The District periodically engages classification and compensation consultants to assess its classification and compensation plans. Historically, the District performs studies of this type in conjunction with the negotiation process. The last compensation study was performed in 2024. Staff is not aware of the District having ever performed a classification study. As responsibilities and positions have developed AGENDA ITEM 8b over time, it is recommended that the District perform a classification study at this time. As the District approaches the 2027 negotiations process, it is recommended that the District engage a consultant to conduct a comprehensive classification review and perform a compensation and benefits study with the specific purpose of: reviewing current job duties, updating job descriptions, evaluating appropriate organizational structure and salary ranges, assessing internal equity, and comparing total compensation, including benefits, against the labor market to ensure external equity and to remain competitive. The study is an important part of the negotiations process. On January 28, 2026, the District issued a Request-for-Proposal (RFP) via the District’s online solicitation portal, PlanetBids. Proposals were due on February 19, 2026, at which time twelve responses were received, two of which were considered non-responsive and were removed from the evaluation process. The remaining ten proposals from the following firms were evaluated: Arthur J. Gallagher Ascension Strategic People Solutions Bolton Partners, Inc. CBIZ Benefits & Insurance Services Inc. Civic Calling Corporation dba Holly Evergreen Solutions, LLC MGT Impact Solutions, LLC Reward Strategy Group, Inc. The Segal Company (Western States) Inc. Transformance Consulting A four-person panel evaluated these proposals, based on completeness, project schedule, qualifications, content and technical approach, and cost. The panel then interviewed the top five firms on March 4 and 5, 2026. RSG received the highest score based on their extensive experience with similar projects, comprehensive understanding of the scope of work, and methodology to perform the services required. A summary of the complete evaluation is shown in Attachment B. Staff completed reference checks for the selected firm and all were positive. RSG is an eight-person consulting firm headquartered in San Diego County who has provided classification and compensation consulting services to a wide range of clients across all sectors for over 30 years. Among their 27 water agency clients, some include the District’s current compensation survey comparator agencies: Helix Water District, Olivenhain Municipal Water District, San Diego County Water Authority, and Vallecitos Water District. This experience has allowed RSG’s consultants to gain familiarity with not only the agencies they have contracted with, but also many of our local comparator agencies that have been included in their surveys. Finally, classification and compensation are the firm’s core practice areas, and their four senior consultants who will be dedicated to this project together have studied and surveyed thousands of classifications. The study is projected to start in April and a draft of the results is expected to be prepared by the end of the calendar year. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The cost of the agreement is listed below and will not exceed $119,480 overall. The total budget for the Classification/Compensation Study, as approved in the FY 2026 budget is $150,000. Staff projects approximately $45,000 of the project to be completed in FY 2026. The remaining $74,480 will be included in the FY 2027 proposed budget. These operating budgets are sufficient to cover these costs. STRATEGIC GOAL: Maintain a long-range financing plan that sets forth the long-term funding needs of the District. LEGAL IMPACT: None. ATTACHMENTS: Attachment A – Committee Action Report Attachment B – Classification & Compensation Study Evaluation Score Summary Attachment C – Presentation ATTACHMENT A SUBJECT/PROJECT: AUTHORIZE THE GENERAL MANAGER TO ENTER INTO A PROFESSIONAL SERVICES AGREEMENT FOR A CLASSIFICATION AND TOTAL COMPENSATION AND BENEFITS STUDY WITH REWARD STRATEGY GROUP, INC. (RSG) IN AN AMOUNT NOT TO EXCEED $119,480 COMMITTEE ACTION: The Ad-Hoc Employee Negotiations Committee reviewed this item at a meeting held on March 20, 2026, and the following comments were made: The Committee inquired about RSG’s background working with 27 water agencies and how the District compares in size. Staff responded by citing several agencies from RSG’s client list and noted that their clients vary widely in size, with some larger and some smaller than the District. In response to the Committee’s question regarding the possibility of not entering into a contract with RSG, staff indicated that the District could proceed with the second-ranked firm. Responding to the Committee’s inquiry regarding whether the District received a proposal from the firm used previously, staff indicated that the firm did not submit a proposal. Upon completion of the discussion, the Committee supported staff’s recommendation and presentation to the full board as a consent item. Attachment B Completeness Project schedule Qualifications Technical approach Individual Subtotal Average Technical Score Cost Score Subtotal Score Additional Creativity and Insight Strength of Project Manager Presentation, Communication Skills Quality of Response to Questions Individual Subtotal Average Interview Score Total Score Firm Maximum Points 10 25 25 25 85 85 15 100 15 15 10 10 50 50 150 Evaluator 1 10 25 23 23 81 11 13 9 9 42 Evaluator 2 8 23 23 23 77 13 15 10 10 48 Evaluator 3 9 20 25 25 79 14 15 9 9 47 Evaluator 4 9 22 25 25 81 14 15 8 10 47 Evaluator 1 4 10 12 12 38 Evaluator 2 5 10 16 18 49 Evaluator 3 5 15 20 18 58 Evaluator 4 4 8 12 10 34 Evaluator 1 10 20 18 17 65 10 8 9 8 35 Evaluator 2 9 23 22 22 76 9 9 8 8 34 Evaluator 3 8 18 24 20 70 9 10 8 8 35 Evaluator 4 10 20 20 17 67 11 8 8 8 35 Evaluator 1 7 20 10 12 49 Evaluator 2 9 22 21 23 75 Evaluator 3 8 17 20 20 65 Evaluator 4 8 17 17 20 62 Evaluator 1 8 25 17 20 70 11 10 7 7 35 Evaluator 2 9 24 21 23 77 13 12 9 9 43 Evaluator 3 8 25 18 20 71 12 12 9 9 42 Evaluator 4 8 17 15 17 57 13 12 9 9 43 Evaluator 1 8 17 15 15 55 Evaluator 2 9 18 20 23 70 Evaluator 3 8 17 22 19 66 Evaluator 4 9 12 20 17 58 Evaluator 1 8 20 20 13 61 Evaluator 2 8 20 21 17 66 Evaluator 3 9 23 23 15 70 Evaluator 4 9 24 20 15 68 Evaluator 1 10 25 23 23 81 12 12 9 9 42 Evaluator 2 10 25 23 24 82 13 13 8 9 43 Evaluator 3 9 25 25 25 84 13 15 10 9 47 Evaluator 4 9 22 25 23 79 14 15 9 10 48 Evaluator 1 8 10 18 18 54 Evaluator 2 8 8 20 23 59 Evaluator 3 9 8 25 24 66 Evaluator 4 7 8 22 20 57 Evaluator 1 5 23 17 20 65 10 10 6 8 34 Evaluator 2 7 24 20 24 75 9 10 5 8 32 Evaluator 3 7 24 23 23 77 9 10 6 6 31 Evaluator 4 4 24 17 24 69 10 8 5 6 29 Firm NTE Total Cost Arthur J Gallagher $174,675 Ascension Strategic People Solutions $195,000 Bolton Partners, Inc.$70,200 CBIZ Benefits and Insurance Services Inc.$74,925 Civic Calling Corporation dba Holly $28,000 Evergreen Solutions, LLC $48,500 MGT Impact Solutions, LLC $90,675 Reward Strategy Group, Inc.$119,480 The Segal Company (Western States) Inc.$175,000 Transformance Consulting $144,474 77.00 Not Interviewed Not Interviewed Not Interviewed Not Interviewed Not Interviewed 46.00 81.00 74.00 84.00 75.00 76.00 89.00 62.00 Technical Score Interview Score CBIZ Benefits and Insurance Services Inc. (St. Louis, MO)63.00 Bolton Partners, Inc. (Cincinnati, OH)70.00 35.00 Evaluation Score Summary Classification and Compensation Study RFP #FY26-2221-0128 83.00 82.00 45.00 13 MGT Impact Solutions, LLC (Tampa, FL)66.00 10 11 116.00 11 125.0015 129.00Arthur J Gallagher (Walnut Creek, CA)80.00 46.00 Ascension Strategic People Solutions (Charlotte, NC)45.00 1 3 5 109.00Transformance Consulting (Corona, CA) 69.00 72.00 41.00 32.00 7 134.00 The Segal Company (Western States) Inc. (Glendale, CA)59.00 3 Civic Calling Corporation dba Holly (New York, NY) Evergreen Solutions, LLC (Tallahassee, FL)62.00 Reward Strategy Group, Inc. (San Diego, CA) Ad-Hoc Employee Negotiations Committee March 20, 2026 Classification & Compensation Study Consultant RFP Process & Selection Recommendation Attachment C Classification & Compensation Study Purpose: •Reviewing current job duties •Updating job descriptions •Evaluating appropriate organizational structure and salary ranges •Assessing internal equity •Comparing total compensation, including benefits, against the labor market to ensure external equity and to remain competitive •Integral part of the negotiations process Classification & Compensation Study Selected Firm: •Headquartered in San Diego County •Classification and compensation are the firm’s core practice areas •Provided classification and compensation consulting services to a wide range of clients across all sectors for over 30 years •27 water agency clients •Four senior consultants who will be dedicated to this project together have studied and surveyed thousands of classifications Classification & Compensation Study Questions? STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: April 1, 2026 SUBMITTED BY: Michael Kerr, Information Technology Manager PROJECT: Various DIV. NO. ALL APPROVED BY: Kevin Koeppen, Chief, Administrative Services Jose Martinez, General Manager SUBJECT: ADOPTION OF THE FY2027 - FY2030 STRATEGIC PLAN, INCLUDING STRATEGIES, OBJECTIVES, AND PERFORMANCE MEASURES GENERAL MANAGER’S RECOMMENDATION: That the Board of Directors adopt the FY2027–FY2030 Strategic Plan as presented. COMMITTEE ACTION: Please see “Attachment A”. PURPOSE: That the Board adopt the proposed FY2027–FY2030 Strategic Plan, including key strategies, objectives, and performance measures. ANALYSIS: The proposed FY2027–FY2030 Strategic Plan reflects a collaborative process incorporating Board input and staff analysis gathered through workshops, SWOT(T) (Strengths, Weaknesses, Opportunities, Threats, and Trends) exercises, and facilitated discussions. These efforts helped identify key priorities and strategic themes that will guide the District’s direction over the next four years. The proposed plan includes 13 strategies, 20 objectives, and 33 key performance metrics designed to support the District’s mission, guide organizational priorities, and measure progress over the four-year planning period. AGENDA ITEM 9a BACKGROUND: This Strategic Plan represents a continuation of the District’s ongoing strategic planning process that began in the early 2000’s. The Strategic Plan is structured using the Balanced Scorecard performance management framework, aligning the District’s goals and performance measures across four perspectives: Customer, Financial, Internal Business Processes, and Learning and Growth. To develop this Strategic Plan, District staff performed a structured, four-step process that began in September 2025. This process included a series of information-gathering activities, workshops, and facilitated discussions designed to gather input from both staff and the Board of Directors. Staff SWOT(T) Assessment and Workshop For the first step of this effort, District staff performed a SWOT(T) assessment. Collectively, this effort generated more than 650 data points and provided practical insights that helped shape the new Strategic Plan. From these data points, common themes and priorities were identified which were then reviewed and refined during workshops with the Department Chiefs to ensure alignment and feasibility. This review established clear themes for subsequent Board consideration. Board SWOT(T) Assessment and Workshop In the second step, an outside facilitator (The Hive) surveyed the Board for input and feedback. The Hive then utilized the Board’s input to prepare a SWOT(T) assessment. The input obtained from the Board was combined with the input obtained from staff to draft the preliminary themes for the new Strategic Plan. The Hive, along with senior staff, presented these themes at a Board workshop on December 8, 2025. At that workshop, the Board provided comments and input that reinforced strengths in effective governance and clear performance metrics that aligned with priorities. The key focus areas highlighted during this workshop were: customer and community trust, financial stewardship, operational resilience, talent development, and succession planning. Strategic Plan Development and Continued Input Based on information obtained at the December 8th workshop, staff drafted proposed strategies and objectives which were presented at the District’s February 17th and February 18th Committee meetings, gathering additional input from the Board. The staff report and related presentations from the February Committee meetings were subsequently included in the District’s March 4th Board packet for the purpose of further seeking input for the proposed Strategic Plan. The input provided by the Committees has been incorporated in this proposed Strategic Plan. There was no additional input received by staff at the March Board meeting. As part of the February Committee meetings and March Board staff report, staff communicated the timeline which included bringing the proposed Strategic Plan to the April Board meeting for adoption. Strategic Plan Adoption Today’s action to adopt the proposed Strategic Plan represents the fourth and last step in this process. The plan provides a structured framework for aligning organizational priorities, monitoring performance, and ensuring accountability through clearly defined strategies, objectives, and performance metrics. Adoption of the Strategic Plan will provide the District with a clear roadmap for advancing its mission while continuing to deliver reliable service, responsible financial management, and organizational excellence. DISCUSSION: Staff has incorporated the input and direction received through the strategic planning workshops into the attached “FY2027 - FY2030 Draft Strategic Plan” (Attachment B). FISCAL IMPACT: Joe Beachem, Chief Financial Officer There is no direct fiscal impact associated with this action; however, fiscal impacts associated with implementing the objectives adopted in this Strategic Plan will be incorporated into future Operating and CIP budgets. STRATEGIC GOAL: Strategic Plan and Performance Measure reporting is a critical element in providing performance reporting to the Board and staff. LEGAL IMPACT: None. ATTACHMENTS: Attachment A – Committee Action Report Attachment B – Presentation - FY2027 – FY2030 Draft Strategic Plan Attachment C – Strategic Plan Workshop Facilitation Summary and Report ATTACHMENT A SUBJECT/PROJECT: ADOPTION OF THE FY2027 - FY2030 STRATEGIC PLAN, INCLUDING STRATEGIES, OBJECTIVES, AND PERFORMANCE MEASURES COMMITTEE ACTION: The Engineering, Operations, & Water Resources Committee, and the Finance & Administration Committee reviewed this item at a meeting held on February 17 and 18, 2026, respectively, and the following comments were made: Staff provided an update on the District’s strategic planning efforts for its next iteration covering fiscal years 2027-2030, which began in September 2025. The proposed plan includes refinements to the strategies and objectives discussed at the December 8, 2025, Board workshop. Staff noted that most performance measures remain unchanged, with only minor administrative adjustments made mostly to align with updated AWWA benchmarks. In response to the Committee’s comment regarding the measure on training hours, staff will review and update the reporting frequency of training related key performance indicators from quarterly to annually. With regards to the District’s debt issuance, the Committee inquired about exploring debt refinancing where beneficial, to which staff responded that they are currently looking into opportunities with the upcoming debt issuance. The committee praised staff and expressed their appreciation for the facilitators’ contributions to the plan via the workshop. Upon completion of the discussion, the Committee supported staffs’ recommendation and presentation to the full board as an informational item. FY27 – FY30 Strategic Plan Otay Water District 1 ATTACHMENT B v Strategic Plan Assess Develop Meet with Staff to collect ideas for the new Strategic Plan First draft of ideas and input Board Input Board of Directors Workshop(input and direction) Build and Finalize Develop formal goals, strategies, objectives, and key performance indicators Adoption Present finalized Strategic Plan during February Committees and April Board September 2025 October 2025 December 2025 December 2025 – March 2026 April 2026 July 2026 Execute/Publish Finalize and distribute the digital and print publications and upload new plan into the reporting application Development Timeline ThemesIn the upcoming plan Artificial Intelligence (AI)Artificial Intelligence (AI) Infrastructure and Asset Optimization Infrastructure and Asset Optimization Financial (Business Systems & Long-Term Benefit Cost Analysis) Financial (Business Systems & Long-Term Benefit Cost Analysis) Customer and Community Engagement Customer and Community Engagement Empowered Culture/Employee Growth Empowered Culture/Employee Growth Workforce Continuity/Leadership Development Workforce Continuity/Leadership Development OTAY WATER DISTRICT STRATEGIC PLAN OTAY WATER DISTRICT STRATEGIC PLAN CUSTOMER:Enhance customer and stakeholder experience, education, and engagement. Enhance the use of communication tools, including customer notifications, to provide timely educational information on the District’s service delivery costs, projects, andother critical events. •Enhance and expand digital outreach and multimedia content to increase customer engagement metrics and improve social media engagement. •Modernize digital platforms to allow District information and services to be easier to access, understand, and use, enhancing customer engagement. •Develop a culturally relevant, multimedia content strategy that enhancesmultilingual/multicultural outreach. Enhance the Business, Community Outreach, and Partnership Guidelines to increase visibility, trust, and understanding ofDistrict stewardship and performance. •Leverage board members and staff outreach with public presentations about theDistrict during meetings with groups and individuals. Expand two-way engagement and listening to strengthen relationships and build trust, including in-person engagement. •Enhance community engagement and trust through listening tours through the use of structured feedback, and expanded education at the Water Conservation Garden. Strategies and Objectives Advance asset management, data-driven maintenance, and replacement strategies. •Formalization of total asset management program that optimizes repair and replacement decisions while considering costs, timing, and customer impacts. Advance the long-range Capital Improvement Plan to extend asset lifecycles. •Develop a long-range capital planning framework that aligns asset conditions, investment timing, and rate impacts over extended planning periods. Strengthen business continuity and operational resilience. •Strengthen organizational resilience by advancing cybersecurity preparedness and climate-informed continuity planning. FINANCE: Strengthen reliability, resilience, and long-term planning to ensure a sustainable and high-performing organization. Develop long-term strategies for recycled water and wastewater services. •Identify gaps in wastewater collection infrastructure and evaluate the most feasible, timely, and cost-effective approaches for extending sewer service. •Evaluate lifecycle strategies for recycled water infrastructure as assets reach end-of- life, including rehabilitation, replacement, or decommissioning options. •Coordinate regional recycled water and wastewater planning while accounting for key interagency dependencies and long-term system uncertainties. Evaluate and integrate broader, long-term water supply strategies into planning and decision-making. •Maintain long-term awareness of regional water supply, cost, and coordination risks to inform future strategic decisions without near-term commitments. •Evaluate alternative cost-based rate billing structures to identify options that improve fairness, transparency, and financial sustainability. FINANCE: (Cont.) Strengthen reliability, resilience, and long-term planning to ensure a sustainable and high-performing organization. INTERNAL BUSINESS PROCESS: Align and adapt organizational structures to optimize performance, efficiency, sustainability, and long-term workforce stability. Optimize workforce capacity and productivity. •Align workforce capacity, staffing practices, and compensation with current and future operational needs. Update labor policies, programs, and practices. •Align wellness, labor practices, policies, and recognition programs to supportworkforce needs, retention, and high performance. Define and implement technologies for data-driven operations. •Define an AI governance framework to guide responsible adoption and evaluate applications to modernize workflows. •Implement planned rollout of AMI to modernize workflows, enable real-time data, and support data-informed operations. LEARNING AND GROWTH: Attract, develop, and retain a high- performance and skilled workforce. Advance operational safety programs. •Continue participation in recognized safety programs and certifications. Advance workforce development and talent strategies to further develop a high-performing workforce. •Build a resilient and capable workforce through training, workforce planning, and recruitment initiatives. •Establish a leadership development program and talent pipeline. FY27 – FY30FY23 - FY26 FREQKEYPERFORMANCE INDICATOR AWWA BENCHMARKTARGETTARGET N/A97%97%QAnswer Rate 3.43.44.6QTechnical Quality Complaint 100%100%100%QPotable Water Compliance Rate Key Performance Indicators CUSTOMER: Enhance customer and stakeholder experience, education, and engagement. Q – Quarterly A - Annual FY27 – FY30FY23 - FY26 FREQKEY PERFORMANCE INDICATOR AWWA BENCHMARKTARGETTARGET N/A150%150%AWater Debt Coverage Ratio N/A150%150%ASewer Debt Coverage Ratio N/A83%83%AReserve Level N/A99.8%99.8%QBilling Accuracy N/ABottom 50th percentileBottom 50th percentileAWater Rate Ranking N/ATarget will be available FY26Q4391AAccounts per Full-Time Employee (FTE) N/A5%5%QDistribution System Loss N/A95%≥ 95%QCIP Project Expenditures vs. Budget FINANCE: Strengthen reliability, resilience, and long-term planning to ensure a sustainable and high-performing organization. Q – Quarterly A - Annual FY27 – FY30FY23 - FY26 FREQKEY PERFORMANCE INDICATOR AWWA BENCHMARKTARGETTARGET N/A< 5%< 5%QConstruction Change Order Incidence N/ABottom 50th percentileBottom 50th percentileASewer Rate Ranking N/A70%70%QPlanned Potable Water Maintenance Ratio in $ N/A70%70%QPlanned Recycled Water Maintenance Ratio in $ N/A80%80%QPlanned Wastewater Maintenance Ratio in $ FINANCE: Strengthen reliability, resilience, and long-term planning to ensure a sustainable and high-performing organization. Q – Quarterly A - Annual INTERNAL BUSINESS PROCESS: Align and adapt organizational structures to optimize performance, efficiency, sustainability, and long-term workforce stability. FY27 – FY30FY23 - FY26 FREQKEYPERFORMANCE INDICATOR AWWA BENCHMARKTARGETTARGET N/ATarget will be available FY26Q4$1464QDirect Cost of Treatment per MGD N/A12851220AHydrant Maintenance Program N/A45744092ASystem Valve Exercising Program N/A100%100%ABusiness Recovery Exercises N/A100%100%AVulnerability Assessment N/A100%100%QMark-out Accuracy N/A100%100%QEasement Evaluation and Field Inspection Q – Quarterly A - Annual FY27 – FY30FY23-FY26 FREQKEYPERFORMANCE INDICATOR AWWA BENCHMARKTARGETTARGET 2.52.52.5Q Potable Water Distribution System Integrity (Leaks) 333Q Potable Water Distribution System Integrity (Breaks) N/A2.52.5QRecycled Water System Integrity (Leaks) N/A33QRecycled Water System Integrity (Breaks) 000QSewer Overflow Rate N/A88APotable Tank Inspection and Cleaning 3.93.94.1AInjury Incident Rate INTERNAL BUSINESS PROCESS: Align and adapt organizational structures to optimize performance, efficiency, sustainability, and long-term workforce stability. Q – Quarterly A - Annual FY27 – FY30FY23-FY26 FREQKEYPERFORMANCE INDICATOR AWWA BENCHMARKTARGETTARGET N/A< 5%< 5%AEmployee Turnover Rate N/A2424ASafety Training Program 16.416.415.6ATraining Hours per Employee LEARNING AND GROWTH: Attract, develop, and retain a high-performance and skilled workforce. Q – Quarterly A - Annual QUESTIONS?QUESTIONS? The Hive Consulting (619) 505-9305 www.TheHive.Consulting The Hive Consulting La Mesa Office 9439 Alto Drive La Mesa, CA 91941 December 30, 2025 Otay Water District Attention: Jose Martinez, General Manager & Michael Kerr, Information Technology Manager 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978 Re: Strategic Plan Workshop Facilitation Summary and Report Dear Mr. Martinez and Mr. Kerr: On behalf of The Hive Consulting (“The Hive”), I am pleased to transmit the Strategic Plan Workshop Facilitation Summary and Report for the Otay Water District (“District”). As you know, The Hive supported the District’s strategic planning process by designing and facilitating the District’s Strategic Plan Workshop held on December 8, 2025, and by analyzing and synthesizing pre- workshop input from District staff and board members. This report documents the workshop outcomes, including the consensus goals and strategic objectives developed through the process, as well as a set of project-level implementation approaches captured for staff consideration during the next phase of strategic plan development. The report is intended to provide a clear record of workshop discussion and decision points, and to support alignment and continuity as the District advances planning, prioritization, and implementation. We appreciate the opportunity to support the District in this important work. Please do not hesitate to contact me if you have any questions, would like edits incorporated, or wish to discuss next steps. Warm regards, Rafael Silva Partner & Cofounder The Hive Consulting Email: rafael@thehive.consulting Office: (619) 505-9305 ATTACHMENT C The Hive Consulting (619) 505-9305 www.TheHive.Consulting Strategic Plan Workshop Summary & Report December 30, 2025 Otay Water District The Hive Consulting 9439 Alto Drive La Mesa, CA 91941 (619) 505-9305 www.thehive.consulting The Hive Consulting (619) 505-9305 www.TheHive.Consulting 1 Table of Contents 1. Executive Summary ............................................................................................................................ 2 2. Engagement Overview ....................................................................................................................... 3 3. Board Survey Summary ..................................................................................................................... 5 4. Workshop Summary: Strategic Priorities ......................................................................................... 7 5. Appendices ....................................................................................................................................... 16 The Hive Consulting (619) 505-9305 www.TheHive.Consulting 2 Otay Water District Strategic Plan Workshop Summary and Report 1. Executive Summary This report summarizes the outcomes of the Otay Water District’s (“District”) Strategic Plan Workshop, supported by The Hive Consulting (“The Hive”) held on December 8, 2025, and which included: (1) Developing and administering a survey to gather individual input from each board member; (2) Reviewing staff input provided by District management through an internal process, and (3) Facilitating the Strategic Plan Workshop to align the Board and staff on priorities and reach consensus on the District’s strategic direction. The District’s strategic plan is organized using the Balanced Scorecard methodology and hierarchy, which includes the following components: perspectives, goals, strategic objectives, and projects. The facilitated Strategic Plan Workshop intentionally focused on the goal and strategic objective levels to maintain a strategic lens and avoid prematurely identifying solutions. Throughout the process, participants also surfaced a range of potential project-level implementation approaches for staff to consider and evaluate during the next phase of the strategic planning process. Workshop Outcomes • Confirmed and refined priority themes informed by board and staff input and workshop discussion. • Reached clear consensus on goals and strategic objectives within each of the Balanced Scorecard perspectives. • Captured a set of implementation approaches (project-level ideas) aligned to strategic objectives to support staff’s next step of planning and prioritization. Key Themes Across board and staff pre-workshop input and during the workshop discussion, several consistent themes shaped the consensus framework: The Hive Consulting (619) 505-9305 www.TheHive.Consulting 3 •Customer and community trust through proactive communication and engagement: Strengthen timely, educational communication (including critical notifications); expand digital reach; improve accessibility and multilingual/culturally relevant outreach; and increase two-way engagement through listening and feedback mechanisms. •Long-range financial stewardship and lifecycle-based investment planning: Extend planning horizons beyond the near-term budget to smooth long-term rate impacts; strengthen data-driven asset management and benefit-cost prioritization, and; communicate the “why” behind investments in clear, accessible language. •Resilience and readiness amid external dependencies: Strengthen business continuity planning and operational resilience (including cybersecurity preparedness), while monitoring regional partner conditions and policy developments to sustain situational awareness and improve preparedness. •Long-horizon positioning on water supply and wastewater/recycled water strategies: Continue monitoring and evaluating longer-term supply concepts and regional planning assumptions, while developing long-term strategies for wastewater and recycled water services. •Workforce capacity and talent pipeline: Address workforce development needs driven by retirements and increasing technical complexity; reinforce safety culture; enhance internal collaboration; and advance leadership development, training, and succession planning. Report Content •A strategic plan workshop consensus summary organized by the Balanced Scorecard hierarchy, including goals and strategic objectives by perspective. •A list of projects / implementation approaches for staff consideration and analysis, captured from board and staff input and during workshop discussion, aligned to each strategic objective. 2.Engagement Overview Otay Water District engaged The Hive Consulting to support the District’s strategic planning process by designing and facilitating the District’s Strategic Plan Workshop. The purpose of this engagement was to support stakeholder alignment on priorities, incorporate board perspectives, and build shared clarity on the District’s strategic direction over the next 3–4 years, culminating in consensus on strategic goals and objectives. The Strategic Plan Workshop was held on December 8, 2025 at the Otay Water District offices, located at 2554 Sweetwater Springs Blvd., Spring Valley, California, 91978. The Hive Consulting (619) 505-9305 www.TheHive.Consulting 4 2.1 Scope of work This engagement included: • Designing and administering a written board input process (survey) to gather perspectives on opportunities/challenges, strengths, emerging trends, and near-term priorities; • Reviewing board input and staff input, and incorporating key themes into the workshop design; • Facilitating a strategic plan workshop with board members and staff to support alignment and consensus; • Preparing a Workshop Summary report documenting consensus outcomes and capturing project ideas raised for later staff consideration and analysis. 2.2 Planning Methodology The District’s strategic plan is structured in the following hierarchy: The Balanced Scorecard perspectives used in this process were: The Hive Consulting (619) 505-9305 www.TheHive.Consulting 5 2.3 Workshop Focus To maintain a strategic lens and support productive decision-making, the workshop emphasized reaching consensus at the goal and strategic objective levels, while capturing potential project-level ideas throughout the process. Those ideas are documented as projects / implementation approaches for staff consideration and analysis in this report. 2.4 Using this Report This report is organized to provide the District with: •A summary of board input themes (Section 3). •The agreed-upon strategic framework by Balanced Scorecard Perspective, including goals and strategic objectives, and related project-level implementation ideas captured for staff consideration and analysis (Section 4). This report is intended to document outcomes and provide traceability from board and staff input and the workshop discussion to the consensus strategic framework. 3.Board Survey Summary This section summarizes key themes from written board input collected through a pre-workshop survey. Responses focused on near-term pressures (3–4 year horizon) while providing some longer-horizon considerations, with recurring emphasis on affordability, infrastructure stewardship, workforce capacity, and strengthening public trust through communication. 3.1 Most pressing opportunities and challenges (next 3–4 years) Board members most frequently emphasized the following: •Rate pressure and affordability: controlling water and wastewater rate increases; minimizing rate impacts to customers amid broader cost-of-living pressures; maintaining cost-effective rates while maintaining service reliability. •Aging infrastructure needs: continued maintenance and upgrades to sustain reliability and resilience. •Workforce transitions: retirements and the need to recruit, retain and develop staff amid increasing technical complexity. The Hive Consulting (619) 505-9305 www.TheHive.Consulting 6 •Regulatory exposure: keeping pace with state and federal regulatory changes, including concerns about unfunded mandates. •Technology and risk: interest in leveraging AI for efficiency, paired with a need to address cybersecurity. •Long-horizon regional topics: mentions of possible future re- involvement/monitoring related to broader supply concepts. 3.2 Core strengths and distinct advantages Board members identified several internal strengths they view as hard to replicate: •Data-driven management and metrics: emphasis on maintaining strong KPIs/quantifiable business metrics with consistent definitions over time. •Operational preparedness and reliability: proactive planning and readiness for major outages. •Technology adoption and innovation: use of tools such as AMI/smart metering, leak detection, and other digital capabilities to improve efficiency and early problem detection. •Organizational culture and leadership: strong internal communication across departments; teamwork; humility and care among leadership and managers; and a supportive, engaged Board. •Financial stability and transparency: viewed as a differentiator in maintaining public trust and supporting long-term planning. 3.3 Emerging trends and external factors to prepare for Board input highlighted the following: •Artificial intelligence and automation: interest in leveraging AI to increase productivity and efficiency. •Cybersecurity: a parallel need as digital systems expand. •Climate extremes: preparation for drought, wildfire, and related impacts on supply, infrastructure, and water quality. •Regulatory and policy uncertainty: concerns about new mandates and affordability-related policy shifts (including potential subsidy requirements). •Regional partner conditions: awareness that fiscal or policy decisions by other agencies could affect coordination and long-term assumptions. •Community/political dynamics: acknowledgement of upcoming Board elections as a context factor. The Hive Consulting (619) 505-9305 www.TheHive.Consulting 7 3.4 Top priorities (next 3–4 years) Across responses, top priorities clustered around: • Infrastructure resilience and modernization • Water supply reliability and sustainability • Water quality assurance • Financial prudence and transparency • Workforce development and building a talent pipeline • Customer engagement and education • Technological innovation and security In addition, several specific ideas surfaced as items for consideration: exploring alternative billing structures, pursuing efficiencies to mitigate cost pressures, and maintaining a regional perspective on water and wastewater issues. 4. Workshop Summary: Strategic Priorities The following goals and strategic objectives reflect workshop consensus, informed by staff pre- work and board survey input. Objectives are intentionally stated at the strategic level; projects / implementation approaches will be analyzed and prioritized by staff in the next phase of the strategic plan development process.1 Perspective: Customer & Community Goal: Enhance customer and stakeholder experience, education, and engagement. ➢ Strategic Objective: Enhance the use of communication tools to provide timely educational information on service delivery and costs, as well as critical customer notifications Consensus / Discussion Notes: Discussion emphasized proactive, timely communication and education, particularly related to service delivery, costs, and critical notifications, while being mindful not to overwhelm customers. 1 Following the workshop, the draft framework was lightly refined for clarity and consistency. Where discussion indicated overlap or closely related ideas, items were consolidated or adjusted to better reflect the workshop participants’ intent while preserving the substance of the consensus. The Hive Consulting (619) 505-9305 www.TheHive.Consulting 8 Projects / Implementation Approaches for Staff Consideration and Analysis: •Expand digital outreach and multimedia content to increase customer engagement metrics and improve social media engagement •Communicate District accomplishments to increase awareness and customer satisfaction •Develop rapid-response communication protocols (e.g., SMS alerts for outages and scams) •Improve customer access and responsiveness (e.g., faster live support pathways and service-response standards) •Proactively educate customers about rate changes, cost drivers, and critical water- related issues (e.g. “How much does 1 gallon of water cost?”, and “How can customers protect against wildfires at home?”) •Develop a content strategy with culturally relevant messaging and multimedia (including paid digital promotion/ads) •Expand multilingual outreach beyond translation (e.g., Spanish and Tagalog across print and digital/social channels) ➢Strategic Objective: Enhance the Community Outreach and Partnership Guidelines to increase visibility, trust, and understanding of District stewardship and performance Consensus / Discussion Notes: Discussion supported a strong desire to transition from passive communication to active community presence. Specific suggestions included creating a Community Ambassador program and leveraging Board members for "community coffee chats" or 15-minute "Pre-designed presentations" at service clubs like Rotary to personally tell the District’s story of efficiency.. Projects / Implementation Approaches for Staff Consideration and Analysis: •Establish community ambassador participation at HOA meetings, service clubs, and community events •Enhance and develop a Language Access Plan to support multilingual customer communications •Leverage board member outreach with public presentations about the District during meetings with groups and individuals ➢Strategic Objective: Modernize digital platforms to make District information and services easier to access, understand, and use The Hive Consulting (619) 505-9305 www.TheHive.Consulting 9 Consensus / Discussion Notes: Discussion emphasized the need to address different audiences and to simplify the user experience and journey (e.g., bigger fonts, less clicks) to ensure information is accessible to all, regardless of user profile. Projects / Implementation Approaches for Staff Consideration and Analysis: •Modernize the District website with improved user and mobile accessibility •Enhance and develop customer portals and dashboards for transparency and self- service ➢Strategic Objective: Expand two-way engagement and listening to strengthen relationships and build trust, including in-person engagement Consensus / Discussion Notes: Participants emphasized the value of in-person engagement and ongoing dialogue to build trust and strengthen relationships beyond digital communications. Projects / Implementation Approaches for Staff Consideration and Analysis: •Organize District-wide community listening tours •Implement systematic feedback mechanisms (e.g. focus groups and surveys) •Leverage the Water Conservation Garden for community education/engagement programming Perspective: Financial & Resource Stewardship Goal: Strengthen reliability, resilience, and long-term planning to ensure a sustainable and high-performing organization ➢Strategic Objective: Advance the long-range Capital Improvement Plan to extend asset lifecycles Consensus / Discussion Notes: Discussion emphasized extending planning horizons beyond the six-year budget to anticipate long-term asset needs and smooth future rate impacts. Projects / Implementation Approaches for Staff Consideration and Analysis: The Hive Consulting (619) 505-9305 www.TheHive.Consulting 10 •Incorporate longer-horizon forecasting (e.g., multi-decade lifecycle curves) to identify future capital spikes early and phase funding accordingly •Use planning horizons longer than the six-year budget to anticipate rate impacts •Align capital timing to smooth rate increases and avoid rate spikes •Explicitly link Capital Improvement Plan (CIP) decisions to asset condition, criticality, and lifecycle cost •Align CIP sequencing with the longer-horizon master plan so the six-year budget reflects a clear long-term trajectory •Leverage long-range planning to explain why investments are needed to customers ➢Strategic Objective: Advance asset management, data-driven maintenance, and replacement strategies Consensus / Discussion Notes: Discussion reinforced the importance of consistent data, lifecycle-based decision-making, and cost-benefit considerations in asset management. Participants noted that the District already applies rates uniformly, but emphasized the value of understanding how long-term asset planning, investment sequencing, and communication about costs may affect different customer groups. Equity was discussed as a guiding consideration within asset planning and customer communication, rather than as a separate strategic objective or rate policy. Projects / Implementation Approaches for Staff Consideration and Analysis: •Expand use of asset condition and performance data to guide repair vs. replace decisions •Integrate benefit–cost analysis into asset prioritization •Continue formalization of total asset management practices •Consider how investment timing, cost drivers, and related communications may affect different customer groups, and reflect those considerations in planning and outreach where appropriate ➢Strategic Objective: Strengthen business continuity and operational resilience Consensus / Discussion Notes: Discussion emphasized preparedness not only for internal operational risks, but also for external dependencies that could affect District planning and operations. Participants highlighted the importance of maintaining awareness of regional policy and fiscal conditions, particularly where decisions by other agencies may introduce risk or uncertainty for the District. The focus was on anticipating changes and strengthening readiness rather than directing specific interagency outcomes. Projects / Implementation Approaches for Staff Consideration and Analysis: The Hive Consulting (619) 505-9305 www.TheHive.Consulting 11 •Strengthen cybersecurity readiness, tabletop exercises, incident response plans, and disaster recovery/continuity planning •Maintain engagement in regional planning and coordination forums •Monitor fiscal and policy developments of key regional partners that may affect District operations or long-term planning •Consider scenario planning to anticipate and mitigate regional coordination and dependency risks •Incorporate climate extremes as a resilience/scenario-planning consideration ➢Strategic Objective: Develop long-term strategies for recycled water and wastewater services Consensus / Discussion Notes: The discussion treated evaluation of wastewater service areas as a component of long-term sewer and recycled water planning, not a separate objective. Projects / Implementation Approaches for Staff Consideration and Analysis: •Evaluate wastewater service areas to complete missing collection system infrastructure •Consider area-based improvement districts to complete missing wastewater collection infrastructure efficiently (economies of scale vs one-off conversions) •Evaluate lifecycle options for recycled water infrastructure (e.g., rehabilitate/replace vs decommission/pull back) as systems reach end-of-life •Assess timing, scope, and feasibility of extending sewer service where gaps exist •Coordinate recycled water and wastewater planning efforts regionally •Factor in regional dependencies and uncertainties (e.g., Pure Water / Metro system direction) into long-term sewer/recycled planning assumptions and scenarios ➢Strategic Objective: Consider broader water supply strategies Consensus / Discussion Notes: Discussion aligned this as a long-horizon strategy focused on awareness and positioning, not near-term commitment. Projects / Implementation Approaches for Staff Consideration and Analysis: •Stay engaged as a stakeholder in regional supply discussions (SDCWA / Metropolitan) •Monitor and evaluate alternative supply concepts (e.g., Rosarito Desalination Project) without committing •Evaluate cost implications, not just supply reliability •Evaluate options for managing excess supply, including third-party transfers/transactions where appropriate •Treat this as long-horizon monitoring, not a near-term initiative The Hive Consulting (619) 505-9305 www.TheHive.Consulting 12 ➢Strategic Objective: Explore different rate billing structures Consensus / Discussion Notes: Flat-rate billing was discussed as an option for evaluation, not a predetermined outcome; emphasis on coordination with customer education and messaging. Projects / Implementation Approaches for Staff Consideration and Analysis: •Evaluate flat-rate billing as one potential rate-billing structure option •Analyze impacts on affordability, customer understanding, and financial sustainability •Evaluate affordability support mechanisms in coordination with state/federal policy (e.g., advocate/monitor emerging legislation for low-income water assistance), recognizing constraints from subsidy mandates (e.g., Prop 218) Perspective: Internal Processes & Operations Goal: Align and adapt organizational structures to optimize performance, efficiency, sustainability, and long-term workforce stability ➢Strategic Objective: Optimize workforce capacity and productivity Consensus / Discussion Notes: Discussion focused on ensuring staffing levels, skills, and organizational structures align with operational needs and future demands, with attention to productivity, role alignment, and effective integration of staff. Projects / Implementation Approaches for Staff Consideration and Analysis: •Evaluate workforce capacity relative to operational and service demands •Assess onboarding, hiring practices, and role alignment to support productivity •Use workforce planning to anticipate future staffing needs and gaps •Assess classification and compensation structures to support operational effectiveness through market competitiveness and workforce satisfaction ➢Strategic Objective: Modernize workflows: integrate an AI framework, and pilot technologies for data-driven operations Consensus / Discussion Notes: Discussion placed significant emphasis on the responsible integration of artificial intelligence and related technologies. Participants highlighted the The Hive Consulting (619) 505-9305 www.TheHive.Consulting 13 importance of establishing appropriate governance, guardrails, and piloting approaches before broader adoption. The discussion underscored that technology modernization should improve consistency, efficiency, and decision-making while being implemented thoughtfully and transparently, with careful consideration of workforce impacts and the need to support staff rather than displace them. Projects / Implementation Approaches for Staff Consideration and Analysis: •Define an AI governance framework to guide responsible adoption •Pilot AMI, IoT, automation, and predictive analytics to improve operations •Evaluate workflow automation opportunities that reduce manual effort and variability while being mindful of workforce impacts ➢Strategic Objective: Leverage data to monitor and improve performance Consensus / Discussion Notes: Emphasis was placed on consistent metrics, dashboards, and analytics to support decision-making and transparency. Projects / Implementation Approaches for Staff Consideration and Analysis: •Maintain key performance indicators and dashboard definitions to continue consistent performance monitoring •Use analytics to monitor trends and identify performance improvement opportunities •Ensure data quality and consistency over time ➢Strategic Objective: Update labor policies, programs, and practices Consensus / Discussion Notes: Discussion supported periodically reviewing labor-related programs to remain competitive and support employee well-being, recruitment, and retention. Projects / Implementation Approaches for Staff Consideration and Analysis: •Review wellness, health, and incentive programs for alignment with workforce needs •Evaluate labor practices to support recruitment, retention, and engagement •Consider policy updates that reinforce organizational effectiveness ➢Strategic Objective: Enhance and align procurement processes to improve efficiency and reduce risk Consensus / Discussion Notes: Discussion focused on using procurement as a tool for fiscal discipline and incentivizing innovation. Participants discussed reviving or updating "Employee The Hive Consulting (619) 505-9305 www.TheHive.Consulting 14 Suggestion Programs" that provide financial incentives for staff who identify procurement efficiencies or cost-saving sourcing alternatives. Projects / Implementation Approaches for Staff Consideration and Analysis: •Conduct ongoing assessments of procurement performance and compliance •Explore strategic sourcing approaches to improve efficiency and reduce risk •Review procurement processes to identify streamlining opportunities Perspective: Learning and Growth Goal: Attract, develop, and retain a high-performing and skilled workforce ➢Strategic Objective: Advance operational safety programs Consensus / Discussion Notes: Discussion centered on the holistic well-being of the workforce. Beyond physical safety, participants advocated for integrating psychological safety and "social-emotional" support, such as decompression activities, into the safety culture to help staff manage the increasing technical and operational pressures of the water sector. Projects / Implementation Approaches for Staff Consideration and Analysis: •Continue participation in recognized safety programs and certifications (Cal/VPP, ACWA/JPIA) •Provide ongoing safety training and reinforcement •Monitor and assess safety performance trends •Embed safety topics into ongoing workforce development and culture-building efforts (e.g., onboarding, refreshers, leadership/crew training). ➢Strategic Objective: Strengthen staff-wide communication and collaboration Consensus / Discussion Notes: Participants highlighted that as a smaller agency, intentional cross-training is the key to resilience. Participants encouraged formalizing the "primary and backup" system used in finance across other departments to prevent "silos" and ensure that institutional knowledge isn't lost when key staff members retire or are absent. Projects / Implementation Approaches for Staff Consideration and Analysis: The Hive Consulting (619) 505-9305 www.TheHive.Consulting 15 •Identify opportunities to improve cross-department communication •Strengthen mechanisms that build internal cohesion through cross-exposure •Reinforce practices that support collaboration and shared understanding •Consider forums or mechanisms that encourage information sharing •Strengthen staff-wide communication, collaboration, and culture (including psychological safety) ➢Strategic Objective: Advance workforce development and talent strategies to further develop a high-performing workforce Consensus / Discussion Notes: Discussion highlighted leadership development, mentorship, professional growth, and the need to strengthen the talent pipeline and succession/knowledge transfer as retirements increase. Projects / Implementation Approaches for Staff Consideration and Analysis: •Evaluate leadership development and mentorship opportunities; support coaching and supervisor development •Support training, cross-training, and professional development pathways (including role- based training where appropriate) •Clarify career progression opportunities, and consider recognition approaches that reinforce high performance •Advance workforce planning activities, including onboarding improvements and position/classification or compensation reviews as needed to support retention and recruitment •Expand internships, training programs, or shared learning opportunities •Develop succession planning and institutional knowledge-transfer approaches for critical roles, including governing board succession •Build staff capabilities for emerging needs (e.g., technology and AI-related upskilling) •Strengthen external partnerships (educational institutions, agencies) to build the future talent pipeline •Increase awareness of water-sector career paths in the region The Hive Consulting (619) 505-9305 www.TheHive.Consulting 16 5.Appendices Two appendices are attached to this report: •Appendix 1: Workshop Presentation & Backup o Contains the presentation used during the workshop, including backup materials used to generate discussion, such as board and staff Input. •Appendix 2: Strategic Priorities Matrix o Material used to generate discussion around each strategic priority identified through the preparation process. STAFF REPORT TYPE MEETING: Regular Board Meeting MEETING DATE: April 1, 2026 SUBMITTED BY: Jenny Diaz District Secretary W.O./G.F. NO:DIV. NO. APPROVED BY: Jenny Diaz, District Secretary Jose Martinez, General Manager SUBJECT: Board of Directors 2026 Meeting Calendar GENERAL MANAGER’S RECOMMENDATION: At the request of the Board of Directors (Board), the attached meeting calendar for 2026 is being presented for discussion. PURPOSE: This staff report is being presented to provide the Board an opportunity to review the 2026 meeting calendar and amend the schedule as needed. COMMITTEE ACTION: N/A ANALYSIS: The Board requested that this item be presented at each meeting so they may have an opportunity to review the meeting calendar schedule and amend it as needed. STRATEGIC GOAL: N/A FISCAL IMPACT: None. AGENDA ITEM 9b LEGAL IMPACT: None. Attachment: Board of Directors 2026 Meeting Calendar Board of Directors Regular Board Meetings* 2026 January 7, 2026 February 4, 2026 March 4, 2026 April 1, 2026 May 13, 2026 June 3, 2026 July 1, 2026 August 5, 2026 September 2, 2026 October 7, 2026 November 4, 2026 December 2, 2026 *Special Board and/or Committee Meetings are typically held on the third Tuesday and Wednesday of each month. These dates will be published on the District’s website. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: April 1, 2026 SUBMITTED BY: Jose Martinez General Manager WO/GF NO.: N/A DIV. NO.: N/A APPROVED BY: Jose Martinez, General Manager SUBJECT: General Manager’s Report GENERAL MANAGER’S OFFICE: 70-Year Anniversary Commemoration – This year, the District marks 70 years of continuous public service to its customers, providing an opportunity to acknowledge the District’s longevity, reaffirm its commitment to reliable, fiscally responsible water service, and recognize the contributions of employees, partners, and customers. Consistent with the District’s role as a public agency, the District is taking a measured, year-long commemoration. This approach allows the District to recognize its history in a professional and cost-conscious manner while preserving resources and flexibility for a more prominent 75th-anniversary celebration in the future. With the theme “70 Years of Service to Our Community,” staff finalized the 70-year graphic (vertical and horizontal), is finalizing an anniversary webpage, and is designing the District headquarters entrance sign, business cards, and other outreach materials incorporating the graphic and the theme. Also, since the beginning of the year, staff have been announcing at business and community events that the District has served its community since 1956. Throughout the year, staff will continue to promote the 70-year AGENDA ITEM 10 2 anniversary through the District’s newsletter, short videos/reels, online and social media platforms, at events, and more. “Tomatomania!” Event at the Water Conservation Garden – On March 6, the District hosted a booth at the annual “Tomatomania!” event at the Water Conservation Garden. Staff provided guests with information on water-related resources and giveaway items. The two-day event featured about 80 tomato varieties for purchase and free landscaping workshops. Staff provided outreach materials to the Garden for the second day of the event. Association of California Water Agencies (ACWA) Proposition 218 Working Group – Staff participated in ACWA’s Prop 218 working group to discuss the amendments for ACWA’s sponsored bill, AB 2180 (Ward). The bill would clarify what proportionality means in the context of rates, providing clarity and predictability for water agencies in developing and adopting constitutionally sound rates. This bill was developed by District staff and a working group of attorneys representing water agencies. Business Outreach - Communications staff attended the South County Economic Development Corporation’s board meeting and Policy and Infrastructure Committee, the Chula Vista Chamber of Commerce’s Public Policy Committee meeting, and Albondigas. Staff highlighted the District’s current programs and projects. Women in Water Symposium – On March 19, the District sponsored Cuyamaca College’s ninth annual Women in Water Symposium. The event theme, “Making A Splash!,” was centered on creating a meaningful and lasting impact in the water industry, building authentic professional connections, futureproofing one’s skills, and confidently navigating career challenges. There were approximately 220 attendees, with 17 staff attending from the District. Two District staff members participated as event speakers. Among the “Unlocking Career Path” panel 3 was District Senior Meter Maintenance and Cross Connection Worker Kim Chavez. The panel gave insight into high-demand careers that require certifications rather than traditional degrees. Additionally, the District’s Business Systems Analyst II, Renee Errasquin, led a separate session, “Optimizing AI in Water,” providing attendees with specific examples and tips for navigating AI at work. Additionally, human resources and communications staff hosted a booth to provide career resources to attendees and college students. Communications staff participated in the planning committee for this year’s symposium. San Diego County Water Authority – Communications staff attended the San Diego County Water Authority’s Joint Public Information Council meeting. Water Authority staff provided updates on its interstate and intrastate water exchanges, its Water Shortage Contingency Plan, its water-use efficiency program, affordability outreach progress, PFAS, and more. Staff also attended the Water Authority’s Legislative Liaison meeting, where Water Authority staff provided updates to member agency staff on federal and state legislation, the intrastate water deal with Western Municipal Water District, and Colorado River issues. ADMINISTRATIVE SERVICES: GIS: New Enterprise GIS Environment Server Deployment - The District has initiated the deployment of a new Enterprise GIS environment, following the completion of the system architecture design. This strategic initiative is focused on establishing a modern, scalable, and resilient GIS platform to support the District’s core operations and long-term objectives. 4 A multi-tier ArcGIS Enterprise architecture is being implemented to improve system availability, performance, and long-term scalability. In parallel, GIS and IT staff are evaluating the opportunities to streamline infrastructure, decommission underutilized systems, and repurpose viable hardware ensuring efficient use of resources while minimizing additional hardware costs. This initiative is in its early stages and progressing as planned. It represents a critical investment in the District’s technology infrastructure, positioning us to better support data-driven decision-making, asset management, and service delivery in the years ahead. Human Resources: ERP/Tyler Conversion - HR continues to work on the timesheet, performance evaluation, benefits, and other HR-related modules being implemented as part of the EERP system conversion. Employee Service Milestones (5-year increments) – April/May 2026 o No employees will achieve service credit milestones in 5-year increments in April 2026. o Jerry Lintner will achieve 20 years of service on 5/1/26 and is scheduled to retire on 5/4/26. o Pete Grable will achieve 5 years of service on 5/17/26. o Larry Ramirez will achieve 10 years of service on 5/23/26. New Hires/Recruitments – The District has completed or is in the process of recruiting approximately 16 vacancies. Five recruitments are in process, eight new hires have started or are scheduled to start, and internal candidates were selected for promotions completing three recruitments. Following are further details on positions the District is or will be recruiting for the following positions: o Accounting Technician (Temporary) – A retired annuitant started on 3/16/26 to assist with coverage during an employee’s leave of absence. o Customer Service Field Representative I (Part Time Temporary) – Recruitment posted on 2/19/26. Phone screens were completed on 3/18/26. o Department Assistant – Recruitment posted on 2/6/26 and closed on 2/22/26. Scheduling of skills tests is in process. 5 o Equipment Mechanic I/II – Phone screens were completed on 1/16/26 and 1/20/26 for the second vacancy. Skills testing and panel interviews were completed on 1/29/26 & 2/10/26. New hire is scheduled to start on 4/13/26. o Finance Manager, Treasury & Accounting Services – Recruitment posted on 12/30/25. Panel interviews were conducted on 3/3/26. New hire is scheduled to start in early June. o Meter Maintenance Worker I/II – Pursuing candidate from recent recruitment. o Senior Accountant – New vacancy due to 3/4/26 retirement. A retired annuitant started on 3/16/26 to assist temporarily. o Senior/Disinfection Technician – Recruitment posted on 1/7/26. Panel interviews were completed on 2/19/26. Pursuing candidate. o Senior/Engineering Technician – Recruitment posted on 10/8/25. Panel interviews were completed on 1/13/26. Additional applications are being reviewed by the department. o Utility Services Manager – Recruitment posted on 12/9/25. Panel interviews were conducted on 2/9/26. An internal candidate started on 3/9/26, creating a Senior Civil Engineer vacancy. o Utility Worker I/II – Phone screens were completed on 1/6/26 and 1/7/26; Skills tests and panel interviews were completed on 1/15/26. Two new hires started 3/2/26 and 3/9/26. Pursuing an additional candidate for late March or early April start date. One employee transfer to Utility Worker II is pending, creating a Meter Maintenance Worker vacancy. Additional phone screens were completed on 3/17, 3/18, and 3/19/26. o Warehouse Technician - Newly budgeted FTE effective January 2026. Recruitment posted on 10/27/25. Phone screens were completed on 12/3/25 & 12/5/25. Panel interviews were completed on 12/18/25. New hire started on 2/9/26. o Water Systems Operator I/II/III - An internal candidate was promoted on 2/9/26, creating an additional Utility Worker I/II vacancy. Pursuing two candidates from recent recruitment. IT Operations: EERP Implementation – EPL – Staff is initiating the implementation of the Enterprise Permitting and Licensing (EPL) module within the District’s new Enterprise ERP system with a three-day kickoff session led by Tyler Technologies implementation consultants. The session will introduce the project scope, timeline, and system 6 capabilities, and begin the analysis phase to align the system with District permitting and licensing processes. Purchasing & Facilities: Warehouse Package Receiving and Tracking System – Purchasing and Facilities implemented a cloud-based package tracking system (Parcel Tracker) to modernize how District deliveries are received, documented, and distributed. Previously, packages were logged manually, notifications were handled case-by-case, and delivery locations were not consistently documented, creating gaps in visibility and accountability, particularly for time-sensitive or high-value items. The new system uses mobile label capture and automated recognition to log deliveries, generate real-time recipient notifications, and document delivery location and package condition with photos. This establishes a verifiable chain of custody for all deliveries, strengthening internal controls and significantly improving transparency and service reliability across departments. The implementation also delivers measurable efficiency gains. With approximately 60 packages processed weekly, the prior manual process required 3–4 minutes per item. The new system reduces handling time to one minute, resulting in an estimated annual savings of 104–156 staff hours. This improvement reduces administrative workload while allowing staff to focus on higher- value activities. This initiative is part of a broader effort to modernize warehouse operations and replace manual processes with technology-enabled workflows, including Tyler Tecnology’s EERP inventory workflows and barcode-based inventory tracking. Collectively, these improvements enhance efficiency, reinforce accountability, and improve service delivery to District staff while advancing the District’s transition to more efficient, technology-supported operations. 7 FINANCE: FY 2027 Budget – Staff are developing Administrative and Materials budgets and personnel budget requests in February and finalizing the CIP plan. The Budget Board Workshop has been rescheduled to April 20. Investment Policy Certification – Staff submitted the District’s Investment Policy to the California Municipal Treasurers Association for review and received certification that the policy complies with State of California statutes. Meter Replacement Project – As of March 19, 387 of the 512 meters selected for the Initial Deployment Area (IDA) have been installed. Professional Meters, Inc. (PMI) anticipates completing the remaining changeouts by the first week of April. Staff have been working to automate the changeout import process. The District’s consultant, ESource, has been performing field QA/QC of the installations to provide additional feedback on the process. The District’s project webpage is referenced in all project-related communications. Staff are currently reviewing the final draft of the project video; once finalized, it will be added to the project webpage. Badger Meter will be onsite the week of April 6 to provide training on its online meter portal for end users. SpryPoint Implementation – SpryPoint was approved by the Board to serve as the District’s utility billing software provider. Staff attended the official kickoff with SpryPoint on March 2. Customer Service, Finance, and IT submitted discovery documents to the 8 SpryPoint project team in preparation for onsite discovery sessions scheduled for the week of March 23. System go-live is currently anticipated in May 2027. Financial Reporting: The financial reporting as of February 28, 2026, is as follows: o As of the eighth month ending February 28, 2026, there are total revenues of $97,620,698 and total expenses of $96,666,495. The revenues exceeded expenses by $954,203. The financial reporting for investments as of February 28, 2026, is as follows: o The market value shown in the Portfolio Summary and in the Investment Portfolio Details as of February 28, 2026, total $110,622,440.76 with an average yield to maturity of 3.829%. The total year-to-date earnings are $2,823,219.76. ENGINEERING AND WATER SYSTEM OPERATIONS: Engineering: Vista Diego Hydropneumatic Pump Station Pump, Hydropneumatic Tank, and Backup Power Replacement, 1530 Zone, Vista Diego Road: The project includes the replacement of the existing pumps, the hydropneumatic tank, and backup power. A concept including a temporary domestic pump skid to be located just outside of the existing pump station yard between Vista Diego Road and the existing pump station site in a shared easement with SDG&E was vetted by Engineering and Operations on July 10, 2025. District in-house engineering staff, supported by the District’s as-needed electrical engineer, EPI, completed the design and posted the bid documents to PlanetBids on March 3, 2026. Bid opening is planned for March 24, 2026. The bid document scope of work includes installation of several owner-pre-purchased items including a domestic pump skid, which was delivered to District headquarters on January 16, 2026. Delivery of other pre-purchased materials such as a prefabricated small building, a pair of bladder tanks, and other items are anticipated through June 2026. The construction contract is expected to go to the EO&WR Committee and Board in the next couple of months. After the District’s Water System Operations staff gain experience and confidence operating the temporary pump station skid, a second phase of the project will be implemented to replace the existing site domestic pumps and existing 9 hydropneumatic tank. The project is within budget and on schedule. (P2639, P2663, and P2688) RWCWRF Disinfection System Improvements: The project involves the replacement of the chlorine gas disinfection system with an ultraviolet (UV) process at the Ralph W. Chapman Water Reclamation Facility. A construction contract was awarded to GSE Construction Co., Inc. on February 21, 2024. The State Water Resources Control Board Department issued the Conditional Title 22 Acceptance Permit in April 2025. Testing and commissioning of the Trojan UV System was initiated at the end of May 2025. The 7-day Initial Performance Testing was completed from November 12 through November 21, 2025. As a result of the Bioassay Spot Check performed from January 5 through January 7, 2026, diagnostics of the system and next steps are being evaluated. The project is delayed due to diagnostics and is on budget. (R2117 and R2157) 450-1 Recycled Water Reservoir Stormwater Improvements: Stormwater runoff from the 450-1 Recycled Water Reservoir site has been eroding the downstream area and exposed the District's 30-inch recycled water line. Staff are working with NV5 and Helix Environmental on design and permitting solutions to support the work within the tributary. Meetings were held with the Regional Water Quality Control Board (RWQCB), the California Department of Fish and Wildlife (CDFW), and the US Army Corps of Engineers in February 2026. The permits will be finalized and submitted in March 2026. The project is within budget and on schedule. (R2164) Zero Emission Vehicles and Charging Infrastructure: The project is for the capital purchase and installation of various electric vehicle support equipment, such as charging infrastructure needed to power Zero Emission Vehicles (ZEVs) for light, medium, and heavy-duty electric vehicles. The project is in preparation for compliance with the State of California's Executive Order N-79-20 and the Advanced Clean Fleet Regulation to require ZEV purchases when adding to the District's fleet of vehicles. The State’s Advanced Clean Cars II (ACCII) regulations are still in place. Due to recent geopolitical events, the District will continue monitoring the current requirements and adjust the implementation and budgeting of the charging infrastructure as needed. In December 2024, the District was awarded $128,093 in grant funding for the installation of five (5) electric vehicle battery charging stations from the Clean Air for All Grant from the San Diego Air Pollution Control District. The final electrical design of the five charging stations was completed in March 2025. The new charging stations were ordered in April 2025 and delivered in May 2025. Contract documents were finalized by staff and 10 advertised for construction in December 2025, with bid award expected in March 2026. Notice of Award was sent to the contractor, bonds and insurance are being finalized, and Notice to Proceed is anticipated in May 2026. The project is within budget and on schedule. (P2684) Potable Pipeline Replacement Projects: The following set of pipelines 90% design consultant submittal is expected in June 2026: o PL - 8-inch, 850 Zone, Coronado Avenue, Chestnut/Apple. Customers affected by the increased pressure will be notified of their requirement to install pressure regulators with an offer of limited reimbursement in May or June. (P2608) o PL - 8-inch, 1004 Zone, Eucalyptus Street, Coronado/Date/La Mesa (P2609) o PL - 12-inch Pipeline Replacement, 803 PZ, Vista Grande (P2615) o PL - 20-inch, 1296 Zone, Proctor Valley Road from Pioneer Way to Melody Road “South Proctor Road” (P2171) o PL - 20-inch, 1296 Zone, Proctor Valley Road from Melody Road to Schlee “North Proctor Road” (P2058) – All Grants of Easement required to complete the CIP improvements have been recorded. Notice to proceed with design plans were provided to NV5 in December 2025. The project is within budget and on schedule. Steele Canyon Road Bridge 20-inch Water Main and 6-inch Force Main Renovations: Several sections of the existing pipelines were found to have corrosion pitting, primarily at pipe supports on the 20-inch steel potable water main and at pipe joints on the 6-inch steel sewer force main. While corrosion was identified, the pipelines remain structurally sound, maintain full operational capacity, and continue to provide reliable service. The first phase, which assessed the extent of the corrosion, was completed, and staff prepared repair recommendations. Materials for the 20-inch steel potable water main repairs were ordered, and Operations staff began the repair work in February 2026. Repairs to the 6-inch steel sewer force main are projected to begin after repairs are completed to the Cottonwood Sewer Pump Station. The project remains within budget and on schedule. (P2687 & S2079) Olympic Parkway Transmission Main Assessment and Repair: Several main breaks within the past few years on the 16-inch potable water line in Olympic Parkway between East Palomar Street and State Highway 125 resulted in the establishment of this Capital Improvement Program project through the annual budget process. This project is for the condition assessment and repair of interior joints within 11 approximately 3,500 feet of the 16-inch cement mortar-lined and coated steel transmission main along Olympic Parkway east of East Palomar Street. Phase 1 of this project, an interior pipeline inspection to assess the condition of the interior pipeline joints, was completed in June 2025. Staff evaluated the inspection results and are working on recommendations for the repairs of the pipeline. The project is within budget and on schedule. (P2706) Cottonwood Sewer Lift Station Replacement: The project involves the replacement of the existing sewer pump station originally constructed in 1986 as a temporary facility due to operational and accessibility deficiencies. The station serves both the District and the County of San Diego (County) customers on the south side of the Sweetwater River. The improvements will incorporate increased station capacity and the addition of emergency storage to avoid a sewage spill. The design is being prepared by Wood Rodgers, Inc. An alternative to reducing costs was confirmed with the District’s Operations staff, Wood Rodgers, and the County on May 7, 2025. A third amendment to the Wood Rodgers professional services agreement corresponding to the cost savings alternative was executed on June 27, 2025. Wood Rodgers coordinated the Preliminary Design Report hydraulic calculations with pump field test data collected on September 24, 2025, and provided preliminary pump selections on November 7, 2025. Wood Rodgers is anticipated to deliver the revised preliminary design report in March 2026. Construction of the project is currently estimated for completion in Fiscal Year 2031. The project is within budget. (S2069) 870-2 Reservoir and 870-1 Reservoir Floating Cover/Liner Replacement: This project consists of constructing a new 3.4 MG prestressed concrete potable water tank adjacent to the existing 870-1 Reservoir. The project also includes lowering the existing 870-1 Reservoir 30- inch inlet pipe and replacing the existing floating cover and liner within the existing 870-1 Reservoir. The construction contract was awarded to Pacific Hydrotech at the September 2024 Board Meeting. Pacific Hydrotech mobilized to the site on October 28, 2024. Pacific Hydrotech completed the new 870-2 Reservoir structure. Hydrostatic testing of the tank was completed in March 2026. The contractor is currently working on 30-inch yard piping and is scheduled to place the new reservoir into service in May or June of this year. Both projects are within budget and on schedule. (P2228 & P2563) 711 Pump Station Replacement and Expansion and Potable Water Pressure Vessel Program (711 Pump Station Surge Tank): The 2015 Water Facilities Master Plan envisioned total replacement of the 711 Pump Station with a budget of $16M; however, the CIP P2578 concept was re- 12 evaluated with a new concept to restore the original pump capacity while utilizing the pump station structure to reduce cost. The initial project will remove one of the existing five 2,500 GPM pumps and replace it with a 4,000 GPM pump and reconfigured discharge and suction piping as a pilot project. Approval to pre-purchase a nominal 4,000 GPM pump to be included in the pilot project was authorized at the February 5, 2025 Board Meeting. The award of the construction contract for the pilot pump configuration and surge tank replacement was approved at the June 2025 Board Meeting. The pre-purchased pump was delivered on December 20, 2025, but the outlet pipe was too long and was repaired by the manufacturer at no additional cost in February 2026. The project is within budget and on schedule. (P2578 & P2663) City of San Diego – Otay 2nd Pipeline Phase 4 Interconnections Relocation: The City of San Diego (City) is working on Phase 4 of the replacement and realignment of the 40-inch potable water line between Telegraph Canyon Road and Bonita Road with a 48-inch pipeline. The District has two interconnections to this line located at East H Street and Telegraph Canyon Road that will need to be replaced to conform to the new construction. The City recently completed the 100% design stage for the new pipeline. The District’s staff has reviewed the City’s 100% design and identified potential utility conflicts that are being coordinated with the City. The two potential interconnection relocations have been identified and are being considered. Additionally, new interconnection agreements with the City are being evaluated and will be finalized concurrently with the City finalizing their pipeline design. The City design is expected to be finalized at the end of FY 2027/beginning of FY 2028. The design is currently in the environmental permitting stage. (P2691) City of Chula Vista – Heritage Road Replacement: The City of Chula Vista is constructing a new bridge crossing the Otay River at Heritage Road, which provides an opportunity for the District to relocate an existing pipeline out of the river into a more secure location. The City of Chula Vista opened bids in September 2024 and awarded the contract at their October 8, 2024 Council meeting. The District Board approved the reimbursement agreement on March 1, 2023. The City of Chula Vista Council approved the agreement at their January 7, 2025 Council meeting. The reimbursement deposit has been wired to the City of Chula Vista. Staff continue to process submittals and RFIs. The pipelines are approximately 85% complete, and the contractor is working on the pressure reducing station. The project is within budget. (P2553, P2405) 13 Sycuan Treatment Plant: The Sycuan Tribal Nation is working with the District to evaluate the feasibility of accepting processed solids from their proposed Recycled Water Treatment Plant. The District initiated a Task Order for NV5 to provide engineering services in the technical evaluation of accepting the solids stream, especially as it would combine with the municipal sewer flows into the Ralph W. Chapman Water Recycled Water Facility. This project is paused until additional funds are deposited. Staff observed that construction of the Sycuan facility started. On October 15, 2025, a letter was sent to Sycuan requesting clarification of their waste discharge location, as no deposit had been received to allow for the District’s continued evaluation. Sycuan responded on October 17, with concerns about the letter. District staff provided clarifications on October 29, 2025, and reached out to Sycuan staff to continue coordination efforts. Recycled/Reuse Feasibility: The Sweetwater Authority (SWA) and the District are working collaboratively through a Memorandum of Understanding (MOU) to evaluate the feasibility of extending water reuse into the SWA area. On February 7, 2024, a Professional Services Agreement (PSA) for a feasibility study was awarded by the Board to Carollo Engineers (Carollo). On June 20, 2024, the District was approved for grant funding from the Water Recycling Funding Program for the SWA and OWD Intertie Project for $300,000. The District, SWA, and Carollo are conducting biweekly progress meetings and collecting data for the Planning and Feasibility Report. Carollo is in the process of reviewing and assessing data from both agencies and coordinating additional data as needed. Carollo plans to submit draft chapters in three parts. A meeting with the leadership of SWA and the District was held on August 14, 2025, to present a summary of the findings. A meeting was held with the combined SWA and Otay Ad hoc on October 6, 2025, to review the draft findings prior to submitting the information to the State Board as the granting agency. A Reimbursement Request for all work completed in FY 2025 was submitted to the State Water Resources Control Board (SWRCB) in August 2025. Final comments were provided to Carollo in November 2025 to finalize the Draft Report. The Draft Report was submitted to SWRCB in December 2025; comments were received from the State in January 2026. The modified Final Report will be sent to the SWRCB at the end of FY 2026. The project is on schedule and within budget. (R1254) Otay Water District Climate Adaptation and Resilience Planning Project: On November 21, 2023, FEMA approved and issued Hazard Mitigation Grant Program (HMGP) funds for the preparation of a Climate Adaptation and Resilience Plan (CARP) for the District. FEMA authorized a total of $244,939.70. The CARP will include a risk and 14 resilience assessment focusing on climate change. The CARP will also include the development of resilience and adaptation strategies to allow the District to prioritize risks. Strategies may include updated policies, built infrastructure-based measures, green infrastructure- based measures, operational approaches, staff training and tools, and communication and education for customers. As of November 2025, the consultant completed the Energy Analysis and is now progressing onto the Risk/Vulnerability Assessment. The project is within budget and on schedule. (P1253) Water Facilities Master Plan, Urban Water Management Plan, and Integrated Water Resources Plan: The Water Facilities Master Plan (WFMP) is periodically updated to identify and provide planning and design data for future potable and recycled water capital improvement projects, along with the corresponding Program Environmental Impact Report (PEIR) update. The Urban Water Management Plan (UWMP) is required to be updated every five years to ensure long-term resource planning and to outline strategies for maintaining a reliable water supply under normal, dry, and drought conditions. The Integrated Resources Plan (IRP) is also periodically updated to support long- term planning by evaluating and prioritizing a range of water supply and demand management strategies to ensure a reliable and resilient water future. Work with the District’s consultant, Woodard and Curran, was initiated in the fourth quarter of FY 2025. A 60-day notice letter informing partner water agencies and stakeholders that the District is preparing updates to its Urban Water Management Plan and Water Shortage Contingency Plan will be sent by the end of March. Drafts of the plan updates will be made available for public review and comment on the District’s website in May prior to the public hearing in June. The project is within budget and on schedule. (P1210) Sewage Flows to Metro vs Planned Capacity: The Metropolitan Water District Amended and Restated Regional Wastewater Disposal Agreement became fully effective at the start of FY 2023. The District’s annual capacity of 0.38 MGD (139 MG) is now in effect, though the District would need to exceed this capacity for three (3) consecutive years before additional capacity must be acquired. The Metropolitan Water District (Metro) capacity was set based upon the District’s sewer system requirements through planning year 2050. The current annual cumulative discharge total for FY 2026 is 39.87 MG, well below the 139 MG planned annual capacity. 15 Summary of Budgeted and Sold Meters and EDUs for Fiscal Year 2026 through February 2026: Operations: On Friday, February 13th, Utility Maintenance staff installed a six- inch tee, a six-inch valve, and a two-inch tap for a developer support project on Grand Avenue in Spring Valley. Staff completed the installation with no issues. On Thursday, February 19th, Water Systems staff assisted the Inspection section with bacteriological sampling for a new tie-in. Staff loaded, flushed, and sampled one new section of main located at Calle Escuela Date Meters (Budgeted) Meters Sold (Actual) EDUs (Budgeted) EDUs Sold (Actual) Total $ (Budgeted) Total $ Collected (Actual) February 2026 7.8 4 31.8 35.5 $475,684 $511,524 Totals FY 2026 62 48 254.3 200.5 $3,805,472 $3,805,472 16 in the Otay Ranch area in Chula Vista (D0954). The main was placed into service after bacteriological results. The following events occurred on Monday, March 2nd: o Water Systems staff isolated a section of the 20-inch steel main to allow Utility Maintenance staff to perform welding on sections of pipe with corrosion issues along the Steel Canyon Bridge off Willow Glen in the El Cajon area. The water main was reopened after repairs were completed. No customers were impacted during this shutdown. A total of 20 replacement hangers were fabricated to replace the damaged hangers and accommodate larger outside diameter at repairs. Phase 1 of welding repairs and tape wrap is anticipated to be completed on Thursday, March 19th. Phase 2 will begin during the dry season. o The District’s Laboratory received its Proficiency Test results as part of the Environmental Laboratory Accreditation Program (ELAP) annual lab recertification process. The test results were all in acceptable ranges. The tests consisted of alkalinity, chloride, conductivity, fluoride, potassium, sodium, sulfate, Total dissolved solids, total solids, pH, turbidity, total chlorine residual, total coliform, fecal coliform, and E. coli. Lab staff completes these tests annually to keep the laboratory compliant with the State’s ELAP program. On Tuesday, March 3rd, Water Systems staff performed a final walk- through inspection on a portion of Otay Mesa Road and Vann Center in the Otay Mesa area (D1199). No issues were noted on the punch list. Final walk-through inspections are required to ensure proper operation/construction of newly built District infrastructure before being accepted. The following events occurred on Wednesday, March 4th: o The 1485 Pump Station flow meter was replaced. Staff isolated the pump station to complete the replacement. There was no customer impact during this work. o Water Systems staff assisted the Inspection section with bacteriological sampling for a new tie-in. Staff loaded, flushed, and sampled one new section of main located at Savoria Parkway in the Otay Ranch area in Chula Vista (D# D0954). The main was placed into service after bacteriological results. On Thursday, March 5th, Water Systems staff performed a final walk- through inspection on a portion of Donze Avenue in Otay Ranch Village 17 2 in the Chula Vista area (D0261). No issues were noted on the punch list. Final walk-through inspections are required to ensure proper operation/construction of newly built District infrastructure before being accepted. On Wednesday, March 11th, Water Systems staff performed a planned shutdown at the 870-1 Reservoir. This shutdown was conducted to tie- in the new jail lateral that is part of the new 870-2 Reservoir CIP project (CIP# P2228). The shutdown lasted approximately 19 hours, and no customers were affected by this shutdown. Thursday, March 12th, the Treatment Plant was offline from Monday, March 9th to Friday, March 13th for maintenance to replace two tertiary influent butterfly valves that needed replacement due to age. Over the last few months, staff, including the retiring District Utility Services Manager, prepared and advertised a Request for Bid for On-Call Supplemental Water/Sewer/Recycled/General Infrastructure Maintenance and Repair Services. Bids were received and opened via PlanetBids on January 14, 2026. The on-call contract will facilitate efficient response to emergency repairs and urgent system upgrades. The on-call contract will also streamline and improve flexibility to complete non-emergent planned work for routine corrective maintenance and in support of Capital Improvement Projects. Award of the contract is currently scheduled for the April Engineering, Operations, and Water Resources (EO&WR) Committee and May Board Meeting. During This period: o Equipment Mechanics, supported by Pump/Electrical, SCADA and Water Systems staff, completed the annual site testing at 1296-1 Pump Station, 1530-1 Hydro Station, 832-1 Pump Station, 1090-1 Pump Station, 1004-2 Pump Station, and 1004-2 Disinfection Station. This testing simulates a loss of utility power (SDG&E) to verify the proper startup, transfer, and shutdown of the District’s generator and pump engines. The test is comprehensive and includes loading both generators and pump engines to 80% capacity to evaluate their performance and reliability. During these tests, no major anomalies were found. o Equipment Mechanics completed 13 California Highway Patrol (CHP) required Biennial Inspectional of Terminals (BIT). The completion of these inspections ensures the continued safe operation of district commercial vehicles and trailers as well as compliance with state law. 18 o Equipment Mechanics completed 16 Annual vehicle preventative maintenance services. These services include engine oil change, fluid checks, brake service, and a comprehensive inspection. They are critical to ensure continued reliability and safety of district vehicles. PURCHASE ORDERS: The following table summarizes purchases orders issued, within staff’s signatory authority, during the period of February 16, 2026 – March 15, 2026: Date PO Amount PO Description Vendor Name 1/26/26 $50,809.52 VISTA DIEGO HYDROPNEUMATIC PUMP STATION (P2639) MCR TECHNOLOGIES, INC. 2/17/26 $4,446.85 980-2 PUMP STATION PUMP SUPPORTS (P2676) FERGUSON ENTERPRISES, INC. 2/19/26 $5,769.00 FY26 CHLORINE GAS EQUIPMENT TRAINING TMG SERVICES, INC. 2/19/26 $3,639.95 FY26 TREATMENT PLANT CHLORINE SCRUBBER SRVC INTEGRITY MUNICIPAL SYSTEMS 2/19/26 $9,366.35 RECYCLE SYSTEM W&T TOTAL CHLORINE ANALYZERS D&H WATER SYSTEMS, INC. 2/24/26 $7,091.32 VISTA DIEGO HYDROPNEUMATIC PUMP STATION (P2639) CS-ASSOCIATED MUNICIPAL SALES, LLP 2/24/26 $7,398.00 VEEAM DATA CLOUD SUBSCRIPTIONS PINNACLE BUSINESS SOLUTIONS 2/24/26 $43,875.62 MICROSOFT 365 LICENSES GIGAKOM 2/26/26 $2,253.25 EQUIPMENT RENTAL SALIZCO, INC. 2/26/26 $9,673.25 HACH APA 6000 ANALYZER PM PARTS HACH COMPANY 2/27/26 $3,432.77 DUMP FEES REPUBLIC SERVICES 2/27/26 $9,972.59 INSTALLATION OF TERTIARY FILTER INFLUENT VALVES LAWRENCE FINDAHL JR 3/5/26 $9,269.53 HACH APA 6000 ANALYZER PM PARTS FOR RESTOCK VICI VALCO INSTRUMENTS 3/5/26 $16,300.49 WAREHOUSE DUAL OFFICE FURNITURE CULTURA 19 AND INSTALLATION 3/06/26 $15,700.00 870-2 PUMP STATION (P2683) MECHANICAL SOLUTIONS, INC. 3/9/26 $11,811.32 CRADLEPOINT NETCLOUD SUBSCRIPTIONS INSIGHT PUBLIC SECTOR INC 3/9/26 $6,825.48 FZ-G2 TABLETS AND HAND STRAPS CDCE INCORPORATED 3/10/26 $7,901.32 FEBRUARY AGG BASE VULCAN SERVICES VULCAN MATERIALS COMPANY 3/10/26 $9,168.45 FABRICATE STEEL PIPE LIVIN METAL, INC. 3/11/26 $9,028.95 TRUCKING CHARGES & BASE MATERIAL FOR THE REG SITE FUENTES TRUCKING, INC. 3/11/26 $4,075.50 TRUCKING SERVICE TO THE 30 MIL FUENTES TRUCKING, INC. 3/11/26 $8,649.36 PAINTING/POWDER COATING OF 20 REBUILT FIRE HYDRANT SAN DIEGO POWDER COATING 3/12/26 $24,492.23 UNLEADED & DIESEL FUEL SC FUELS Water Purchases: Potable Water Purchases – The February potable water purchases were 1,837 acre-feet which is 2.1% above the budget of 1,800 acre-feet. Cumulative purchases for the year are 19,013 acre-feet, 3.0% below the year-to-date budget of 19,606 acre-feet. 20 Recycled Water Purchases – The recycled water purchases from the City of San Diego and production at the District’s treatment facility for the month of February were 150 acre-feet which is 38.8% above the budget of 108 acre-feet. Cumulative purchases and production for the year are 2,228 acre-feet, 15.0% below the year-to-date budget of 2,620 acre-feet. The table below displays the year-to-date and monthly rainfall data for February. Rainfall February Y-T-D Actual 2.29 8.33 3-year Historical Average 2.42 7.90 Variance (0.13) (5.4%) 0.43 5.4% Potable, Recycled, and Sewer (Reporting up to the month of February): Total number of potable water meters: 52,120. Total number of sewer connections: 4,761. Recycled water consumption for the month of February: o Total consumption: 176.28 acre-feet or 57,439,668 gallons. o Average daily consumption: 2,051,416 gallons per day. 21 o Total cumulative recycled water consumption since February 2025: 2,524.93 acre-feet. o Total number of recycled water meters: 817. Wastewater flows for the month of February: o Total basin flow: 1,674,179 gallons per day. This is an increase of 0.3 percent from February 2025. o Spring Valley Sanitation District flows to Metro: 559,872 gallons per day. o Total Otay flow: 1,114,250 gallons per day. o Flow processed at the Ralph W. Chapman Water Recycling Facility: 1,027,071 gallons per day. o Flow to Metro from Otay Water District: 87,179 gallons per day. o By the end of February there were 6,761 wastewater EDUs. Exhibit A FOR THE PERIOD ENDING FEBRUARY 28, 2026 Annual YTD REVENUES:Budget Actual Budget Variance Var % Potable Water Sales 81,546,000$ 52,478,181 55,804,350 (3,326,169) (6.0%) Recycled Water Sales 11,620,000 7,650,265 8,163,500 (513,235) (6.3%) Potable Energy Charges 4,236,000 2,961,922 3,083,000 (121,078) (3.9%) Potable System Charges 15,518,000 10,123,846 10,144,800 (20,954) (0.2%) Potable MWD & CWA Fixed Charges 18,695,000 12,046,870 12,109,600 (62,730) (0.5%) Potable Penalties and Other Fees 1,200,000 801,194 835,000 (33,806) (4.0%) Total Water Sales 132,815,000 86,062,278 90,140,250 (4,077,972) (4.5%) Sewer Charges 3,564,000 2,359,348 2,338,200 21,148 0.9% Meter Fees 80,000 44,908 53,200 (8,292) (15.6%) Capacity Fee Revenues 3,278,000 2,174,954 2,185,200 (10,246) (0.5%) Non-Operating Revenues 2,618,900 1,975,379 1,745,200 230,179 13.2% Tax Revenues 6,854,000 4,295,257 4,093,300 201,957 4.9% Interest 898,000 708,574 598,400 110,174 18.4% Total Revenues 150,107,900$ 97,620,698 101,153,750 (3,533,052) (3.5%) EXPENSES: Potable Water Purchases 58,785,000$ 38,581,178 39,902,000 1,320,822 3.3% Recycled Water Purchases 7,272,000 4,138,000 4,726,800 588,800 12.5% CWA-Fixed Transportation Charge 2,731,000 1,665,435 1,674,433 8,998 0.5% CWA-Infrastructure Access Charge 3,288,000 2,128,771 2,192,000 63,229 2.9% CWA-Customer Service Charge 2,388,000 1,528,707 1,560,000 31,293 2.0% CWA-Reliability Charge 4,326,000 2,569,354 2,866,000 296,646 10.4% CWA-Emergency Storage Charge 5,502,000 3,503,797 3,574,000 70,203 2.0% MWD-Capacity Res Charge 1,092,000 690,009 708,000 17,991 2.5% MWD-Readiness to Serve Charge 648,000 430,054 432,000 1,946 0.5% Subtotal Water Purchases 86,032,000 55,235,305 57,635,233 2,399,928 4.2% Power Charges 4,643,000 3,065,982 3,226,800 160,818 5.0% Payroll & Related Costs 29,796,300 19,339,858 20,773,700 1,433,842 6.9% Materials & Maintenance 5,476,200 3,575,284 3,650,600 75,316 2.1% Administrative Expenses 10,688,700 6,018,010 7,113,900 1,095,890 15.4% Legal Fees 1,180,000 1,237,756 786,600 (451,156) (57.4%) Expansion Reserve 1,477,700 985,100 985,100 - 0.0% Betterment Reserve 9,076,000 6,050,600 6,050,600 - 0.0% OPEB Trust 671,000 447,300 447,300 - 0.0% General Fund Reserve 1,067,000 711,300 711,300 - 0.0% Total Expenses 150,107,900$ 96,666,495 101,381,133 4,714,638 4.7% EXCESS REVENUES(EXPENSES)-$ 954,203 (227,383) 1,181,586 OTAY WATER DISTRICT COMPARATIVE BUDGET SUMMARY F:/MORPT/FS2026-P8 Feb26 3/23/2026 2:39 PM The year-to-date excess revenue of $954,203 is $1,181,586 more than the budgeted excess expenses of ($227,383). COMPARATIVE BUDGET SUMMARY NET REVENUE AND EXPENSES FOR THE PERIOD ENDING FEBRUARY 28, 2026 -$1,800,000 -$1,600,000 -$1,400,000 -$1,200,000 -$1,000,000 -$800,000 -$600,000 -$400,000 -$200,000 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN YTD Actual Net Revenues YTD Budget Net Revenues YTD Variance in Net Revenues OTAY WATER DISTRICT INVESTMENT PORTFOLIO REVIEW February 28, 2026 INVESTMENT OVERVIEW & MARKET STATUS: At the Federal Reserve Board's regular meeting on December 10, 2025, the Committee decided to lower the target range for the federal funds rate from 3.75-4.00% to 3.50%-3.75%, in support of its goals and in light of the shift in the balance of risks. At that meeting, the Committee felt economic activity moderated in the first half of the year. There have been no further changes made to the federal funds rate at the most recent meeting, which was held on January 28, 2026. The Committee will evaluate the risk balance, outlook, and incoming data before making any modifications to the federal funds target range. It is intended to support employment and restore inflation to its 2% objective by decreasing Treasury securities and agency debt. The Committee will continue to observe the effects of incoming information on the economic outlook. In determining the timing and size of future adjustments to the target range for the federal funds rate, they went on to say: "The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments." The District's effective rate of return for February 2026 was 3.83%, which was 4 basis points lower than the previous month. LAIF's return was 6 basis points lower than last month, with an average effective yield of 3.87% for February 2026. The District has maintained a competitive long-term rate of return on the portfolio. The current investment strategy includes increased liquidity relative to historical levels to meet anticipated higher liquidity requirements. As part of the District’s continued strategy, staff continuously monitor investment options and liquidity needs. Currently, no changes to the investment strategy are being considered due to competitive returns and increased liquidity requirements. Under the District's Investment Policy, all District funds continue to be managed based on the objectives, in priority order, of safety, liquidity, and return on investment. PORTFOLIO COMPLIANCE: February 28, 2026 Investment State Limit Otay Limit Otay Actual 8.01: Treasury Securities 100% 100% 9.17% 8.02: Local Agency Investment Fund (Operations) $75 Million $75 Million $74.17 Million 8.03: Federal Agency Issues 100% 100% 6.42% 8.04: Certificates of Deposit 30% 15% 0 8.05: Short-Term Commercial Notes 25% 10% 0 8.06: Medium-Term Commercial Debt 30% 10% 0 8.07: Money Market Mutual Funds 20% 10% 3.67% 8.08: San Diego County Pool 100% 100% 12.52% 12.0: Maximum Single Financial Institution 100% 50% 1.42% $1,569,009 1.42% $87,787,090 79.59% $20,942,525 18.99% Otay Water District Investment Portfolio: 02/28/2026 Banks (Passbook/Checking/CD)Pools (LAIF & County)Agencies,Treasury Securities & Money Market Mutual Funds Total Cash and Investments: $110,298,624 (Book Value) Jul FY25 Aug FY25 Sep FY25 1st Qtr FY25 Oct FY25 Nov FY25 Dec FY25 2nd Qtr FY25 Jan FY25 Feb FY25 Mar FY25 3rd Qtr FY25 Apr FY25 May FY25 Jun FY25 4th Qtr FY25 Jul FY26 Aug FY26 Sep FY26 1st Qtr FY26 Oct FY26 Nov FY26 Dec FY26 2nd Qtr FY26 Jan FY26 Feb FY26 Otay 4.13 4.21 4.23 4.19 4.16 4.16 4.08 4.13 4.10 4.37 4.11 4.19 4.10 4.08 4.10 4.09 4.05 4.00 4.02 4.02 4.04 4.05 3.99 4.03 3.87 3.83 LAIF 4.52 4.58 4.58 4.56 4.52 4.48 4.43 4.48 4.37 4.33 4.31 4.34 4.29 4.27 4.27 4.28 4.26 4.25 4.21 4.24 4.15 4.10 4.03 4.09 3.93 3.87 Difference -0.39 -0.37 -0.35 -0.37 -0.36 -0.32 -0.35 -0.34 -0.27 0.04 -0.20 -0.14 -0.19 -0.19 -0.17 -0.19 -0.21 -0.25 -0.19 -0.22 -0.11 -0.05 -0.04 -0.07 -0.06 -0.04 -1.00 0.00 1.00 2.00 3.00 4.00 5.00 Re t u r n o n I n v e s t m e n t s Month Performance Measure FY-26 Return on Investment Otay LAIF Difference Target: Meet or Exceed 100% of LAIF Month End Portfolio Management February 28, 2026 Portfolio Summary % of Portfolio Book ValueInvestmentsMarket Value Par Value Days to MaturityTerm YTM 360 Equiv. YTM 365 Equiv. Treasury Securities - Coupon 9,971,069.78 5129.17 3.7872899,984,480.0010,000,000.00 3.839 Federal Agency Issues - Bullet 6,979,652.30 7416.42 4.0903797,009,470.007,000,000.00 4.147 Money Market 3,991,802.81 13.67 3.53013,991,802.813,991,802.81 3.579 Local Agency Investment Fund (LAIF)74,170,691.50 168.22 3.818174,332,493.6074,170,691.50 3.871 San Diego County Pool 13,616,399.52 112.52 3.876113,735,185.6313,616,399.52 3.930 108,729,615.91 100.00%Investments 109,053,432.04108,778,893.83 95 52 3.829 3.882 Cash (not included in yield calculations) Passbook/Checking 1,569,008.72 1 1.53611,569,008.721,569,008.72 1.558 110,298,624.63Total Cash and Investments 110,622,440.76110,347,902.55 95 52 3.829 3.882 Current Year February 28 322,953.80 Fiscal Year To Date 2,823,219.76 Average Daily Balance Effective Rate of Return 108,308,521.47 105,075,956.99 4.04%3.89% Total Earnings Month Ending I hereby certify that the investments contained in this report are made in accordance with the District Investment Policy Number 27 adopted by the Board of Directors on May 07, 2025. The investments provide sufficient liquidity to meet the cash flow requirements of the District for the next six months of expenditures. __________________________________________________ ____________________ Joe Beachem, Chief Financial Officer Portfolio OTAY NL! APData Updated: SET_PM1: 03/23/2026 11:35 Reporting period 02/01/2026-02/28/2026 Run Date: 03/23/2026 - 11:35 PM (PRF_PM1) 7.3.11 Report Ver. 7.3.11 03/24/2026 YTM 360 Page 1 Par Value Book Value MaturityDateStatedRateMarket Value February 28, 2026 Portfolio Details - Investments AverageBalanceIssuer Portfolio Management Month End Days to MaturityMoody'sCUSIP Investment # Purchase Date Treasury Securities - Coupon 4.143US TREASURY2427 1,000,000.00 998,448.45 03/31/20262.25002/05/2025 998,810.00 Aa19128286L9 30 4.034US TREASURY2428 1,000,000.00 998,532.77 03/31/20262.25003/27/2025 998,810.00 Aa19128286L9 30 3.897US TREASURY2429 1,000,000.00 1,000,477.76 06/15/20264.12504/25/2025 1,001,330.00 Aa191282CHH7 106 4.016US TREASURY2430 1,000,000.00 996,772.73 09/30/20263.50005/23/2025 999,110.00 Aa191282CLP4 213 3.977US TREASURY2431 1,000,000.00 998,615.39 08/31/20263.75006/13/2025 1,000,370.00 Aa191282CLH2 183 3.728US TREASURY2433 1,000,000.00 986,661.21 03/31/20272.50008/19/2025 989,450.00 Aa191282CEF4 395 3.546US TREASURY2434 1,000,000.00 1,003,402.06 01/15/20274.00009/17/2025 1,003,870.00 Aa191282CJT9 320 3.547US TREASURY2435 1,000,000.00 1,001,867.31 04/30/20273.75010/08/2025 1,002,890.00 Aa191282CMY4 425 3.472US TREASURY2436 1,000,000.00 989,466.68 07/31/20272.75011/13/2025 990,390.00 Aa191282CFB2 517 3.506US TREASURY2438 1,000,000.00 996,825.42 12/31/20273.37501/21/2026 999,450.0091282CPS4 670 9,971,069.789,984,480.0010,000,000.009,968,873.44Subtotal and Average 3.787 289 Federal Agency Issues - Bullet 3.453Federal Agricultural Mortgage2439 1,000,000.00 1,002,241.11 01/26/20283.62502/13/2026 1,003,190.00 Aa131428JAB3 696 4.932Federal Farm Credit Bank2420 1,000,000.00 999,960.40 03/05/20264.62504/17/2024 1,000,070.00 Aa13133EP4K8 4 4.679Federal Farm Credit Bank2421 1,000,000.00 1,000,056.24 05/06/20274.75005/28/2024 1,014,400.00 Aa13133ERDS7 431 4.060Federal Farm Credit Bank2423 2,000,000.00 2,000,134.58 12/16/20264.12512/16/2024 2,008,720.00 Aa13133ERK42 290 3.560Federal Farm Credit Bank2437 1,000,000.00 998,136.58 12/09/20273.50012/10/2025 1,000,830.00 Aa13133ET3G0 648 3.886Federal Home Loan Bank2432 1,000,000.00 979,123.39 12/21/20261.25007/17/2025 982,260.00 Aa13130AQF65 295 6,979,652.307,009,470.007,000,000.006,548,838.74Subtotal and Average 4.090 379 Money Market 3.531Blackrock T - Fund Inst9010 4,106.59 4,106.59 3.5804,106.59RESERVE-10A WRB 1 3.531Blackrock T - Fund Inst9011 3,918,033.97 3,918,033.97 3.5803,918,033.97RESERVE 10 BABS 1 3.472FIRST AMERICAN US TREASURY9016 69,662.25 69,662.25 3.52069,662.25OWD TRUST & CUS 1 3,991,802.813,991,802.813,991,802.814,067,196.08Subtotal and Average 3.530 1 Local Agency Investment Fund (LAIF) 3.818STATE OF CALIFORNIA9001 74,170,691.50 74,170,691.50 3.87174,332,493.60LAIF 1 74,170,691.5074,332,493.6074,170,691.5074,027,834.36Subtotal and Average 3.818 1 San Diego County Pool 3.876San Diego County9007 13,616,399.52 13,616,399.52 3.93013,735,185.63SD COUNTY POOL 1 13,616,399.5213,735,185.6313,616,399.5212,766,315.56Subtotal and Average 3.876 1 Portfolio OTAY NL! APData Updated: SET_PM1: 03/23/2026 11:35 Run Date: 03/23/2026 - 11:35 PM (PRF_PM2) 7.3.11 Report Ver. 7.3.11 YTM 360 Page 2 Par Value Book Value StatedRateMarket Value February 28, 2026 Portfolio Details - Investments AverageBalanceIssuer Portfolio Management Month End Days to MaturityMoody'sCUSIP Investment # Purchase Date 108,308,521.47 108,778,893.83 3.829 52109,053,432.04 108,729,615.91Total and Average Portfolio OTAY NL! APData Updated: SET_PM1: 03/23/2026 11:35 Run Date: 03/23/2026 - 11:35 PM (PRF_PM2) 7.3.11 YTM 360 Page 3 Par Value Book Value StatedRateMarket Value February 28, 2026 Portfolio Details - Cash AverageBalanceIssuer Portfolio Management Month End Days to MaturityMoody'sCUSIP Investment # Purchase Date US Bank 0.000STATE OF CALIFORNIA9003 3,100.00 3,100.003,100.00PETTY CASH 1 1.627STATE OF CALIFORNIA9004 1,481,320.82 1,481,320.82 1.6501,481,320.82OPERATING 1 0.000STATE OF CALIFORNIA9005 9,332.94 9,332.9407/01/2025 9,332.94PAYROLL 1 0.000STATE OF CALIFORNIA9014 45,369.85 45,369.8507/01/2025 45,369.85FLEX ACCT 1 0.000California Bank & Trust9017 29,885.11 29,885.1102/11/1999 29,885.11GRANT FUNDS 1 0.00 108,308,521.47 110,347,902.55 3.829 52 1Average Balance 110,622,440.76 110,298,624.63Total Cash and Investments Portfolio OTAY NL! APData Updated: SET_PM1: 03/23/2026 11:35 Run Date: 03/23/2026 - 11:35 PM (PRF_PM2) 7.3.11 Month End Activity Report Sorted By Issuer February 1, 2026 - February 28, 2026 Current Rate Transaction Date Balance Beginning Balance Ending Par Value Percent of Portfolio Par Value CUSIP Investment # Issuer Purchases or Deposits Redemptions or Withdrawals Issuer: Blackrock T - Fund Inst Money Market Blackrock T - Fund Inst9010 12.483.580 0.00RESERVE-10A WRB Blackrock T - Fund Inst9011 11,910.043.580 0.00RESERVE 10 BABS 0.003,910,218.04 3,922,140.56Subtotal and Balance 11,922.52 11,922.52 0.003,910,218.04 3,922,140.563.554%Issuer Subtotal Issuer: STATE OF CALIFORNIA US Bank STATE OF CALIFORNIA9004 1,317,115.421.650 692,696.93OPERATING STATE OF CALIFORNIA9005 4,294.95 0.00PAYROLL STATE OF CALIFORNIA9014 50,654.27 15,976.34FLEX ACCT 708,673.27875,732.24 1,539,123.61Subtotal and Balance 1,372,064.64 Local Agency Investment Fund (LAIF) STATE OF CALIFORNIA9001 1,800,000.003.871 2,000,000.00LAIF 2,000,000.0074,370,691.50 74,170,691.50Subtotal and Balance 1,800,000.00 3,172,064.64 2,708,673.2775,246,423.74 75,709,815.1168.610%Issuer Subtotal Issuer: California Bank & Trust US Bank 29,885.11 29,885.11Subtotal and Balance 0.00 0.0029,885.11 29,885.110.027%Issuer Subtotal Issuer: FIRST AMERICAN US TREASURY Money Market FIRST AMERICAN US TREASURY9016 925,207.653.520 1,004,011.81OWD TRUST & CUS 1,004,011.81148,466.41 69,662.25Subtotal and Balance 925,207.65 925,207.65 1,004,011.81148,466.41 69,662.250.063%Issuer Subtotal Portfolio OTAY NL! APData Updated: SET_PM1: 03/23/2026 11:35 Run Date: 03/23/2026 - 11:35 DA (PRF_DA) 7.3.11 Report Ver. 7.3.11 Current Rate Transaction Date Balance Beginning Balance Ending Par Value Page 2 Percent of Portfolio Par Value February 1, 2026 - February 28, 2026 Activity Report Month End CUSIP Investment # Issuer Purchases or Deposits Redemptions or Withdrawals Issuer: Federal Agricultural Mortgage Federal Agency Issues - Bullet Federal Agricultural Mortgage2439 1,000,000.003.625 02/13/2026 0.0031428JAB3 0.000.00 1,000,000.00Subtotal and Balance 1,000,000.00 1,000,000.00 0.000.00 1,000,000.000.906%Issuer Subtotal Issuer: Federal Farm Credit Bank Federal Agency Issues - Bullet 5,000,000.00 5,000,000.00Subtotal and Balance 0.00 0.005,000,000.00 5,000,000.004.531%Issuer Subtotal Issuer: Federal Home Loan Bank Federal Agency Issues - Bullet 1,000,000.00 1,000,000.00Subtotal and Balance 0.00 0.001,000,000.00 1,000,000.000.906%Issuer Subtotal Issuer: San Diego County San Diego County Pool San Diego County9007 4,701,175.383.650 3,900,000.00SD COUNTY POOL 3,900,000.0012,815,224.14 13,616,399.52Subtotal and Balance 4,701,175.38 4,701,175.38 3,900,000.0012,815,224.14 13,616,399.5212.340%Issuer Subtotal Issuer: US TREASURY Treasury Securities - Coupon 10,000,000.00 10,000,000.00Subtotal and Balance 0.00 0.0010,000,000.00 10,000,000.009.062%Issuer Subtotal 108,150,217.44 110,347,902.55Total7,612,685.089,810,370.19100.000% Portfolio OTAY NL! APData Updated: SET_PM1: 03/23/2026 11:35 Run Date: 03/23/2026 - 11:35 DA (PRF_DA) 7.3.11 Report Ver. 7.3.11 Month End Duration Report Sorted by Investment Type - Investment Type Through 02/28/2026 Investment #Security ID Issuer Investment Class Book Value Par Value Market Value Current Rate YTM Current Yield Maturity/ Call Date Duration Modified 360Fund US TREASURY2427 99 1,000,000.00 998,810.009128286L9 3.705 03/31/2026 0.082998,448.45 4.143Fair2.2500000 US TREASURY2428 99 1,000,000.00 998,810.009128286L9 3.705 03/31/2026 0.082998,532.77 4.034Fair2.2500000 US TREASURY2429 99 1,000,000.00 1,001,330.0091282CHH7 3.650 06/15/2026 0.2901,000,477.76 3.897Fair4.1250000 US TREASURY2430 99 1,000,000.00 999,110.0091282CLP4 3.659 09/30/2026 0.563996,772.73 4.016Fair3.5000000 US TREASURY2431 99 1,000,000.00 1,000,370.0091282CLH2 3.644 08/31/2026 0.501998,615.39 3.977Fair3.7500000 US TREASURY2433 99 1,000,000.00 989,450.0091282CEF4 3.498 03/31/2027 1.045986,661.21 3.728Fair2.5000000 US TREASURY2434 99 1,000,000.00 1,003,870.0091282CJT9 3.549 01/15/2027 0.8501,003,402.06 3.546Fair4.0000000 US TREASURY2435 99 1,000,000.00 1,002,890.0091282CMY4 3.499 04/30/2027 1.1181,001,867.31 3.547Fair3.7500000 US TREASURY2436 99 1,000,000.00 990,390.0091282CFB2 3.452 07/31/2027 1.375989,466.68 3.472Fair2.7500000 US TREASURY2438 99 1,000,000.00 999,450.0091282CPS4 3.408 12/31/2027 1.754996,825.42 3.506Fair3.3750000 Federal Farm Credit Bank2420 99 1,000,000.00 1,000,070.003133EP4K8 4.030 03/05/2026 0.010999,960.40 4.932Fair4.6250000 Federal Farm Credit Bank2421 99 1,000,000.00 1,014,400.003133ERDS7 3.498 05/06/2027 1.1261,000,056.24 4.679Fair4.7500000 Federal Farm Credit Bank2423 99 2,000,000.00 2,008,720.003133ERK42 3.567 12/16/2026 0.7672,000,134.58 4.060Fair4.1250000 Federal Home Loan Bank2432 99 1,000,000.00 982,260.003130AQF65 3.504 12/21/2026 0.788979,123.39 3.886Fair1.2500000 Federal Farm Credit Bank2437 99 1,000,000.00 1,000,830.003133ET3G0 3.453 12/09/2027 1.692998,136.58 3.560Fair3.5000000 Federal Agricultural Mortgage2439 99 1,000,000.00 1,003,190.0031428JAB3 3.452 01/26/2028 1.8191,002,241.11 3.453Fair3.6250000 Blackrock T - Fund Inst9010 99 4,106.59 4,106.59RESERVE-10A 3.580 0.0004,106.59 3.531Amort3.5800000 Blackrock T - Fund Inst9011 99 3,918,033.97 3,918,033.97RESERVE 10 3.580 0.0003,918,033.97 3.531Amort3.5800000 FIRST AMERICAN US 9016 99 69,662.25 69,662.25OWD TRUST & 3.520 0.00069,662.25 3.472Amort3.5200000 STATE OF CALIFORNIA9001 99 74,170,691.50 74,332,493.60LAIF 3.871 0.00074,170,691.50 3.818Fair3.8710000 San Diego County9007 99 13,616,399.52 13,735,185.63SD COUNTY 3.930 0.00013,616,399.52 3.876Fair3.9300000 3.822 0.134108,729,615.91 108,778,893.83 109,053,432.04Report Total Portfolio OTAY NL! AP Page 1 Data Updated: SET_PM1: 03/23/2026 11:35 Run Date: 03/23/2026 - 11:35 DU (PRF_DU) 7.3.11 Report Ver. 7.3.11 Month End Interest Earnings Sorted by Fund - Fund February 1, 2026 - February 28, 2026 Yield on Beginning Book Value Maturity Date Current Rate Ending Par Value EndingSecurity TypeFund Book Value Beginning Book Value Adjusted Interest Earnings Accretion Amortization /Earnings Adjusted InterestAnnualized YieldCUSIP Investment # Interest Earned Fund: Treasury Fund 979,123.392432 1,000,000.00 1.250FAC12/21/2026 1,041.67 2,159.65 3,201.324.27299 976,963.743130AQF65 3,100.009003 3,100.00PA1 0.00 0.00 0.0099 3,100.00PETTY CASH 1,481,320.829004 1,481,320.82 1.650PA1 1,112.85 0.00 1,112.851.69399 856,902.33OPERATING 9,332.949005 9,332.94PA1 0.00 0.00 0.0099 5,037.99PAYROLL 45,369.859014 45,369.85PA1 0.00 0.00 0.0099 10,691.92FLEX ACCT 74,170,691.509001 74,170,691.50 3.871LA1 219,828.19 0.00 219,828.193.85399 74,370,691.50LAIF 1,000,056.242421 1,000,000.00 4.750FAC05/06/2027 3,958.33 -3.97 3,954.365.15499 1,000,060.213133ERDS7 998,136.582437 1,000,000.00 3.500FAC12/09/2027 2,916.66 87.62 3,004.283.92499 998,048.963133ET3G0 999,960.402420 1,000,000.00 4.625FAC03/05/2026 3,854.17 297.04 4,151.215.41399 999,663.363133EP4K8 2,000,134.582423 2,000,000.00 4.125FAC12/16/2026 6,875.00 -14.17 6,860.834.47199 2,000,148.753133ERK42 29,885.119017 29,885.11PA1 0.00 0.00 0.0099 29,885.11GRANT FUNDS 986,661.212433 1,000,000.00 2.500TRC03/31/2027 1,923.08 945.54 2,868.623.79499 985,715.6791282CEF4 1,003,402.062434 1,000,000.00 4.000TRC01/15/2027 3,093.93 -297.68 2,796.253.63299 1,003,699.7491282CJT9 1,001,867.312435 1,000,000.00 3.750TRC04/30/2027 2,900.55 -123.02 2,777.533.61499 1,001,990.3391282CMY4 998,615.392431 1,000,000.00 3.750TRC08/31/2026 2,898.86 211.85 3,110.714.06299 998,403.5491282CLH2 989,466.682436 1,000,000.00 2.750TRC07/31/2027 2,127.07 570.47 2,697.543.55699 988,896.2191282CFB2 996,825.422438 1,000,000.00 3.375TRC12/31/2027 2,610.49 132.67 2,743.163.58899 996,692.7591282CPS4 998,532.772428 1,000,000.00 2.250TRC03/31/2026 1,730.76 1,369.41 3,100.174.05399 997,163.369128286L9 996,772.732430 1,000,000.00 3.500TRC09/30/2026 2,692.30 424.25 3,116.554.07899 996,348.4891282CLP4 1,000,477.762429 1,000,000.00 4.125TRC06/15/2026 3,173.08 -126.21 3,046.873.96999 1,000,603.9791282CHH7 998,448.452427 1,000,000.00 2.250TRC03/31/2026 1,730.76 1,448.12 3,178.884.15699 997,000.339128286L9 13,616,399.529007 13,616,399.52 3.930LA3 38,487.82 0.00 38,487.823.91599 12,815,224.14SD COUNTY POOL 1,002,241.112439 1,000,000.00 3.625FAC01/26/2028 1,812.50 -58.89 1,753.613.99199 0.0031428JAB3 69,662.259016 69,662.25 3.520PA2 392.84 0.00 392.843.44999 148,466.41OWD TRUST & CUS 4,106.599010 4,106.59 3.580PA2 11.28 0.00 11.283.59299 4,094.11RESERVE-10A WRB 3,918,033.979011 3,918,033.97 3.580PA2 10,758.93 0.00 10,758.933.59199 3,906,123.93RESERVE 10 BABS 110,347,902.55Subtotal 110,298,624.63 3.817 322,953.807,022.68315,931.12108,091,616.84 110,347,902.55Total 110,298,624.63 3.817 322,953.807,022.68315,931.12108,091,616.84 Portfolio OTAY NL! APData Updated: SET_PM1: 03/23/2026 11:35 Run Date: 03/23/2026 - 11:35 IE (PRF_IE) 7.3.11 Report Ver. 7.3.11 Month End GASB 31 Compliance Detail Sorted by Fund - Fund February 1, 2026 - February 28, 2026 Investment #Maturity Date BeginningInvested Value Purchaseof Principal Investment ClassFundCUSIP Adjustment in Value EndingInvested ValueAdditionto Principal Redemptionof Principal AmortizationAdjustment Change inMarket Value Fund: Treasury Fund 2432 980,020.00Fair Value 12/21/2026 2,240.0099 982,260.003130AQF650.00 0.00 0.00 0.00 9003 3,100.00Amortized 0.0099 3,100.00PETTY CASH 0.00 0.00 0.00 0.00 9004 856,902.33Amortized 0.0099 1,481,320.82OPERATING0.00 1,317,115.42 692,696.93 0.00 9005 5,037.99Amortized 0.0099 9,332.94PAYROLL0.00 4,294.95 0.00 0.00 9014 10,691.92Amortized 0.0099 45,369.85FLEX ACCT 0.00 50,654.27 15,976.34 0.00 9001 74,532,929.90Fair Value -436.3099 74,332,493.60LAIF0.00 1,800,000.00 2,000,000.00 0.00 2421 1,014,780.00Fair Value 05/06/2027 -380.0099 1,014,400.003133ERDS70.00 0.00 0.00 0.00 2437 999,120.00Fair Value 12/09/2027 1,710.0099 1,000,830.003133ET3G00.00 0.00 0.00 0.00 2420 1,001,010.00Fair Value 03/05/2026 -940.0099 1,000,070.003133EP4K80.00 0.00 0.00 0.00 2423 2,010,680.00Fair Value 12/16/2026 -1,960.0099 2,008,720.003133ERK420.00 0.00 0.00 0.00 9017 29,885.11Amortized 0.0099 29,885.11GRANT FUNDS 0.00 0.00 0.00 0.00 2433 988,090.00Fair Value 03/31/2027 1,360.0099 989,450.0091282CEF40.00 0.00 0.00 0.00 2434 1,004,090.00Fair Value 01/15/2027 -220.0099 1,003,870.0091282CJT90.00 0.00 0.00 0.00 2435 1,002,580.00Fair Value 04/30/2027 310.0099 1,002,890.0091282CMY40.00 0.00 0.00 0.00 2431 1,000,640.00Fair Value 08/31/2026 -270.0099 1,000,370.0091282CLH20.00 0.00 0.00 0.00 2436 988,710.00Fair Value 07/31/2027 1,680.0099 990,390.0091282CFB20.00 0.00 0.00 0.00 2438 997,110.00Fair Value 12/31/2027 2,340.0099 999,450.0091282CPS40.00 0.00 0.00 0.00 2428 997,720.00Fair Value 03/31/2026 1,090.0099 998,810.009128286L90.00 0.00 0.00 0.00 2430 999,310.00Fair Value 09/30/2026 -200.0099 999,110.0091282CLP40.00 0.00 0.00 0.00 2429 1,001,960.00Fair Value 06/15/2026 -630.0099 1,001,330.0091282CHH70.00 0.00 0.00 0.00 2427 997,720.00Fair Value 03/31/2026 1,090.0099 998,810.009128286L90.00 0.00 0.00 0.00 9007 12,997,855.17Fair Value -63,844.9299 13,735,185.63SD COUNTY POOL 0.00 4,701,175.38 3,900,000.00 0.00 2439 0.00Fair Value 01/26/2028 890.0099 1,003,190.0031428JAB31,002,300.00 0.00 0.00 0.00 9016 148,466.41Amortized 0.0099 69,662.25OWD TRUST & CUS 0.00 925,207.65 1,004,011.81 0.00 9010 4,094.11Amortized 0.0099 4,106.59RESERVE-10A WRB 0.00 12.48 0.00 0.00 9011 3,906,123.93Amortized 0.0099 3,918,033.97RESERVE 10 BABS 0.00 11,910.04 0.00 0.00 108,478,626.87Subtotal -56,171.22 110,622,440.761,002,300.00 8,810,370.19 7,612,685.08 0.00 108,478,626.87Total 110,622,440.76-56,171.221,002,300.00 8,810,370.19 7,612,685.08 0.00 Portfolio OTAY NL! APData Updated: SET_PM1: 03/23/2026 11:35 Run Date: 03/23/2026 - 11:35 GD (PRF_GD) 7.3.11 Report Ver. 7.3.11 Check Num Check Amt Invoice Description Invoice Total Check Dt Vendor Num Invoice Num 2065418 970.75 ELEVATOR GEN MAINT 970.75 3/4/2026 15416 210027 2065482 4,050.00 SHAREPOINT & INTRANET SUPP 4,050.00 3/18/2026 8488 13545 2065419 1,353.09 INTERNET CIRCUITS 1,353.09 3/4/2026 18122 0973103113 2065420 1,067.36 CUSTOMER REFUND 1,067.36 3/4/2026 30528 2446020926 BILLING ADMINISTRATION 80.00 3/18/2026 22138 963732 BILLING ADMINISTRATION 230.10 3/18/2026 22138 966070 2065421 130.59 EXPENSE REIMBURSEMENT 130.59 3/4/2026 20862 030226 2065469 1,175.16 UB REFUND 0000264430 1,175.16 3/11/2026 99999 ubRef031226001 2065422 33,593.75 PROF SERV - JAN 2026 33,593.75 3/4/2026 17264 310853 2065484 3,773.75 TELEPHONE SERVICES 3,773.75 3/18/2026 7785 000024804057 2065485 9,103.10 FY26 JANITORIAL SERVICES 9,103.10 3/18/2026 20125 J2275 2065423 7,203.25 MATERIALS FOR METER CHANGEOUT 7,010.46 3/4/2026 586 1785419 2065486 64,660.19 METER CHANGEOUT AMI PROJECT 68,063.37 3/18/2026 586 1788395 2065470 363.99 UB REFUND 0000305788 363.99 3/11/2026 99999 ubRef031226008 AS-NEEDED SODIUM HYPOCHLORITE 488.69 3/4/2026 30350 BPI582381 AS-NEEDED SODIUM HYPOCHLORITE 858.91 3/4/2026 30350 BPI582108 AS-NEEDED SODIUM HYPOCHLORITE 1,777.06 3/4/2026 30350 BPI582109 AS-NEEDED SODIUM HYPOCHLORITE 1,777.06 3/4/2026 30350 BPI582110 AS-NEEDED SODIUM HYPOCHLORITE 607.16 3/11/2026 30350 BPI583922 AS-NEEDED SODIUM HYPOCHLORITE 2,073.23 3/11/2026 30350 BPI583921 AS-NEEDED SODIUM HYPOCHLORITE 2,399.03 3/11/2026 30350 BPI583923 AS-NEEDED SODIUM HYPOCHLORITE 385.03 3/18/2026 30350 BPI585704 AS-NEEDED SODIUM HYPOCHLORITE 444.26 3/18/2026 30350 BPI585706 AS-NEEDED SODIUM HYPOCHLORITE 473.88 3/18/2026 30350 BPI586503 AS-NEEDED SODIUM HYPOCHLORITE 1,969.57 3/18/2026 30350 BPI586502 AS-NEEDED SODIUM HYPOCHLORITE 2,828.48 3/18/2026 30350 BPI585705 2065488 381.23 ARMORED TRANSPORTATION SERVICE 381.23 3/18/2026 21775 13152273 2065425 2,573.78 LEGISLATIVE ADVOCACY CONSULTING 2,573.78 3/4/2026 8156 1074902 2065489 2,914.00 HR/LEGAL CONSULTING SERV 2,914.00 3/18/2026 3005 361372 2065490 32,686.50 SWA/OWD RW INTERTIE PROJ 32,686.50 3/18/2026 15177 FB76079 Check Register Check Dates: 2/19/2026 thru 3/18/2026 payee Invoice Date 24 HOUR ELEVATOR INC 2/17/2026 AMERIFLEX 2065483 310.10 3/8/2026 3/8/2026 ABLEFORCE INC 3/2/2026 ACC BUSINESS 2/11/2026 ALPHA PROJECT 2/9/2026 AT&T 2/12/2026 AZTEC LANDSCAPING INC 2/28/2026 BADGER METER INC 2/9/2026 2/23/2026 ANDREW JACKSON 3/2/2026 ANGELA HARRIS 3/10/2026 ARTIANO SHINOFF ABED 2/19/2026 BLUE PACIFIC ENGINEERING CONST 3/10/2026 BRENNTAG PACIFIC INC 2065424 4,901.72 2/12/2026 2/12/2026 2/12/2026 2/13/2026 2065449 5,079.42 2/19/2026 2/19/2026 2/19/2026 2065487 BRINKS INC 3/1/2026 BROWNSTEIN HYATT FARBER 2/24/2026 BURKE WILLIAMS & SORENSEN LLP 2/26/2026 6,101.22 2/26/2026 2/26/2026 3/5/2026 3/5/2026 2/26/2026 CAROLLO ENGINEERS INC 12/12/2025 3/18/2026 8:18:37 PM Page 1 Check Register Check Dates: 2/19/2026 thru 3/18/2026 2065387 1,685.89 EMERGENCY 12 INCH REPAIR JAMUL 1,685.89 2/25/2026 848 P2944-00003 MODULES HYDROPNEUMATIC PS 1,489.24 3/11/2026 20245 30791612 MODULES HYDROPNEUMATIC PS 2,393.24 3/11/2026 20245 30791613 2065491 8,455.20 PANASONIC TOUGHBOOKS 7,892.00 3/18/2026 21414 144330 2065426 259.38 CUSTOMER REFUND 259.38 3/4/2026 4985 0601020926 DDA3334/UP250386 - DEPOSIT DEV 1,272.70 3/11/2026 446 DDA3334121926 DDA3334/UP250386 - DEPOSIT DEV 1,572.70 3/11/2026 446 DDA333421226 2065492 163,607.09 TREATED WATER & TRANSPORTATION 163,607.09 3/18/2026 234 1000440813 BACTERIOLOGICAL TESTING 1,320.00 3/18/2026 4119 43925 BACTERIOLOGICAL TESTING 1,320.00 3/18/2026 4119 43926 2065494 540.75 FY26 DATA SERVICES - REALQUEST 540.75 3/18/2026 15049 82292820 EMISSIONS INVENTORY ASSESSMENT 4,452.00 2/25/2026 2122 APCD2026EIA80 0219 EMISSIONS INVENTORY ASSESSMENT 4,452.00 2/25/2026 2122 APCD2026EIA80 0221 EMISSIONS INVENTORY ASSESSMENT 4,452.00 2/25/2026 2122 APCD2026EIA80 0223 EMISSIONS INVENTORY ASSESSMENT 4,452.00 2/25/2026 2122 APCD2026EIA80 0225 DEVELOPER INSPECT (FEB 2026)300.00 3/18/2026 184 200193E6355402 26DEVELOPER INSPECT (FEB 2026)300.00 3/18/2026 184 2003193E602130 226 DEVELOPER INSPECT (FEB 2026)300.00 3/18/2026 184 2003193E632680 226 DEVELOPER INSPECT (FEB 2026)300.00 3/18/2026 184 2003193E632860 226 DEVELOPER INSPECT (FEB 2026)300.00 3/18/2026 184 2003193E635920 226 DEVELOPER INSPECT (FEB 2026)300.00 3/18/2026 184 2003193E636720 226DEVELOPER INSPECT (FEB 2026)300.00 3/18/2026 184 2003193E643270 226 DEVELOPER INSPECT (FEB 2026)450.00 3/18/2026 184 2003193E633970 226 CASS CONSTRUCTION INC 12/31/2025 CB PACIFIC INC.2065450 4,183.38 1/28/2026 1/28/2026 CITY TREASURER 1/29/2026 CLARKSON LAB & SUPPLY INC 2065493 2,640.00 2/27/2026 2/27/2026 CDCE INCORPORATED 2/23/2026 CITY OF CHULA VISTA 2/9/2026 2065451 2,845.40 2/19/2026 2/12/2026 3/1/2026 3/1/2026 3/1/2026 3/1/2026 3/1/2026 CORELOGIC SOLUTIONS LLC 2/28/2026 COUNTY OF SAN DIEGO 2065388 17,808.00 1/21/2026 1/21/2026 1/21/2026 1/21/2026 2065495 7,020.00 3/1/2026 3/1/2026 3/1/2026 3/18/2026 8:18:37 PM Page 2 Check Register Check Dates: 2/19/2026 thru 3/18/2026 DEVELOPER INSPECT (FEB 2026)600.00 3/18/2026 184 2003193E643340 226 DEVELOPER INSPECT (FEB 2026)1,650.00 3/18/2026 184 2003193E641180 226 DEVELOPER INSPECT (FEB 2026)2,220.00 3/18/2026 184 2003193E640940 22620654528,150.25 WAREHOUSE DUAL OFFICE FURNITURE 8,150.25 3/11/2026 18756 19901 2065496 3,102.04 OFFICE FURNITURE 2,655.82 3/18/2026 18756 19883 2065471 1,499.69 UB REFUND 0000292873 1,499.69 3/11/2026 99999 ubRef031226005 2065472 1,499.69 UB REFUND 0000294244 1,499.69 3/11/2026 99999 ubRef031226007 2065473 78.89 UB REFUND 0000293529 78.89 3/11/2026 99999 ubRef031226006 2065427 9,870.98 PROMINENT TOTAL CHLORINE 9,161.00 3/4/2026 11797 226-0235 2065402 98.50 UB REFUND 0000275027 98.50 2/25/2026 99999 ubRef022626004 2065474 109.62 UB REFUND 0000292458 109.62 3/11/2026 99999 ubRef031226003 2065389 8,830.00 10-25 BUCKETS OF DRYLET AQUA 8,830.00 2/25/2026 18983 3581 2065453 284.68 FY26 RECYCLED WASTE SERVICE 284.68 3/11/2026 2447 5458 022826 2065403 23.50 UB REFUND 0000154469 23.50 2/25/2026 99999 ubRef022626002 2065404 73.51 UB REFUND 0000301500 73.51 2/25/2026 99999 ubRef022626010 2065428 2,359.23 WATER EFFICIENCY EVAL CONSULT 2,359.23 3/4/2026 21206 OTAY CP-10 2065429 5,660.92 ENVIRONMENTAL SERVICES (1/1/26 5,660.92 3/4/2026 22412 216213 VISION BENEFITS ADMIN 100.78 3/11/2026 20511 167215141 VISION BENEFITS ADMIN 1,506.24 3/11/2026 20511 167221242 INVENTORY 1,993.08 3/4/2026 3546 0901475 INVENTORY 8,250.00 3/4/2026 3546 0900900 INVENTORY 234.00 3/18/2026 3546 0901509 INVENTORY 571.59 3/18/2026 3546 0901497 INVENTORY 5,355.00 3/18/2026 3546 0901782 INVENTORY 7,015.00 3/18/2026 3546 0902667 CWC COTA VERA 127 LLC 3/10/2026 3/10/2026 CYNTHIA SWEENEY 3/10/2026 3/1/2026 3/1/2026 3/1/2026 CULTURA 3/5/2026 2/26/2026 DRYLET INC 2/5/2026 EDCO DISPOSAL CORPORATION 2/28/2026 EDUARDO POSADAS 2/24/2026 D&H WATER SYSTEMS INC 2/18/2026 DEANNA RUIZ 2/24/2026 DIANA ACOSTA CHAVEZ 3/10/2026 EYEMED (FIDELITY)2065454 1,607.02 2/20/2026 2/20/2026 ELIJAH AMICO 2/24/2026 ENVIRONMENTAL INCENTIVES INC 2/11/2026 ENVIRONMENTAL SCIENCE ASSOC 2/11/2026 FERGUSON WATERWORKS # 1083 2065430 11,036.92 2/17/2026 2/6/2026 2065497 14,196.70 2/25/2026 2/24/2026 2/24/2026 3/5/2026 3/18/2026 8:18:37 PM Page 3 Check Register Check Dates: 2/19/2026 thru 3/18/2026 2065498 99.00 DOCUMENT SERVICE FY 2026 99.00 3/18/2026 17888 9003400226 2065390 60.00 BI-WEEKLY PAYROLL DEDUCTION 60.00 2/25/2026 22973 9484 2065455 60.00 BI-WEEKLY PAYROLL DEDUCTION 60.00 3/11/2026 22973 9602 TRUCKING CHARGES & BASE MATERIAL 1,128.72 3/18/2026 20424 36548 TRUCKING CHARGES & BASE MATERIAL 4,075.50 3/18/2026 20424 36546 TRUCKING CHARGES & BASE MATERIAL 7,812.75 3/18/2026 20424 36547 2065431 121.66 AS-NEEDED FLEET WASH SVC 121.66 3/4/2026 30368 FC3533934 2065500 153.23 AS-NEEDED FLEET WASH SVC 153.23 3/18/2026 30368 FC3552789 PEERLESS PUMP REPLACE/REBUILD 9,293.00 3/18/2026 30071 58911 PEERLESS PUMP REPLACE/REBUILD 37,172.00 3/18/2026 30071 58833 2065405 12.71 UB REFUND 0000053107 12.71 2/25/2026 99999 ubRef022626001 2065502 3,274.58 MICROSOFT 365 LICENSES 3,274.58 3/18/2026 30185 R1071SA-11 2065503 2,240.61 HACH APA 6000 ANALYZER PM PART 2,079.45 3/18/2026 174 14894489 2065406 90.79 UB REFUND 0000275816 90.79 2/25/2026 99999 ubRef022626005 2065504 202.94 AETNA EMPLOYEE ASSISTANCE PROG 202.94 3/18/2026 22165 E0365804 2065391 5,687.73 ENVIRONMENTAL SERVICES 5,687.73 2/25/2026 2008 132140 2065505 26,023.91 SMA HABITAT MANAGEMENT 26,023.91 3/18/2026 2008 132451 WATER USAGE AT RUSSELL SQ 73.52 2/25/2026 62 4330021026 WATER USAGE AT AVOCADO 80.66 2/25/2026 62 5428321026 2065506 3,791.25 GRANT WRITING 3,791.25 3/18/2026 20950 20260058 2065507 1,810.73 MASTER METER XTR ENDPOINTS 1,690.51 3/18/2026 21322 0004641 2065393 7,068.75 PURCHASE OF TRAFFIC CONES/SIGN 6,500.00 2/25/2026 6511 00209524 2065394 4,200.00 CORROSION COUPON PROG RENEW 4,200.00 2/25/2026 17921 11544 2065508 3,607.00 LAND SURVEYING (JAN 2026)3,607.00 3/18/2026 13349 2026010059 2065475 31.40 UB REFUND 0000307262 31.40 3/11/2026 99999 ubRef031226011 2065432 3,000.10 BILL PROCESSING SERVICES FY26 3,000.10 3/4/2026 8969 304545 BILL PROCESSING SERVICES FY26 2,708.51 3/18/2026 8969 305663 BILL PROCESSING SERVICES FY26 15,106.22 3/18/2026 8969 305664 2065433 2,473.00 ANTENNA SUBLEASE 2,473.00 3/4/2026 20752 414907370 FUENTES TRUCKING INC 2065499 13,016.97 3/4/2026 3/4/2026 3/4/2026 FIRST AMERICAN DATA TREE LLC 2/28/2026 FRANCHISE TAX BOARD 2/26/2026 3/12/2026 GERARDO HERNANDEZ 2/24/2026 GIGAKOM 2/20/2026 HACH COMPANY 2/27/2026 FW FLEET CLEAN LLC 2/13/2026 2/27/2026 GENERAL PUMP COMPANY, INC.2065501 46,465.00 2/27/2026 11/25/2025 HELIX WATER DISTRICT 2065392 154.18 2/10/2026 2/10/2026 HARRIS RAZA 2/24/2026 HEALTH AND HUMAN RESOURCE 3/4/2026 HELIX ENVIRONMENTAL 1/23/2026 2/25/2026 HUGUENOT LABORATORIES 1/28/2026 HUNSAKER & ASSOCIATES 2/24/2026 IMAD GORGHIS 3/10/2026 HOCH CONSULTING APC 3/2/2026 HPS WEST INC.2/25/2026 HUDSON SAFE-T-LITE RENTALS 2/5/2026 IWG TOWERS ASSETS II LLC 3/1/2026 INFOSEND INC 2/10/2026 2065509 17,814.73 2/28/2026 2/28/2026 3/18/2026 8:18:37 PM Page 4 Check Register Check Dates: 2/19/2026 thru 3/18/2026 2065407 24.17 UB REFUND 0000306227 24.17 2/25/2026 99999 ubRef022626013 2065476 1,438.18 UB REFUND 0000306805 1,438.18 3/11/2026 99999 ubRef031226010 2065510 850.00 EXPENSE REIMBURSEMENT 850.00 3/18/2026 30572 121825 2065456 318.87 EXPENSE REIMBURSEMENT 318.87 3/11/2026 22666 031026 2065434 6,625.00 BENEFIT BROKERAGE & CONSULTING 6,625.00 3/4/2026 21926 334547 2065435 121.58 MILEAGE REIMBURSEMENT 121.58 3/4/2026 22258 030226 2065395 1,549.86 RETENTION AS-NEEDED ASPHALT 1,549.86 2/25/2026 5840 25-119-1R 2065457 22,825.40 AS-NEEDED ASPHALTIC PAVING SER 24,026.73 3/11/2026 5840 25-119-8 2065408 2,685.00 UB REFUND 0000299739 2,685.00 2/25/2026 99999 ubRef022626008 2065458 8,727.56 LIFE & STD/LTD INSURANCE 8,727.56 3/11/2026 30442 221238 010126 2065511 1,599.05 GEN HEALTH & SAFETY CONSULT 1,599.05 3/18/2026 21524 4029 2065409 59.12 UB REFUND 0000300796 59.12 2/25/2026 99999 ubRef022626009 2065463 130.45 EXPENSE REIMBURSEMENT 130.45 3/11/2026 3514 030426 2065410 49.30 UB REFUND 0000301775 49.30 2/25/2026 99999 ubRef022626011 2065512 15,700.00 870-1 PUMP STATION ENGINE DRIV 15,700.00 3/18/2026 30425 9394 2065396 4,530.42 ADMIN LANDSCAPE UPDATE - PHASE II 4,768.86 2/25/2026 21723 022826 2065436 12,288.00 IRRIGATION REPAIRS NW SLOPE 12,288.00 3/4/2026 21723 11672 IRRIGATION REPAIRS NW SLOPE 945.00 3/18/2026 21723 11677 IRRIGATION REPAIRS NW SLOPE 5,264.00 3/18/2026 21723 11679 2065477 670.00 UB REFUND 0000292850 670.00 3/11/2026 99999 ubRef031226004 2065478 24.54 UB REFUND 0000273522 24.54 3/11/2026 99999 ubRef031226002 2065459 87,494.43 SIMFLO VERTICAL TURBINE PUMP 80,776.49 3/11/2026 30041 108182-2 2065411 148.43 UB REFUND 0000214602 148.43 2/25/2026 99999 ubRef022626003 2065437 164.05 WITHHOLDING TAX 164.05 3/4/2026 20996 022826 2065460 9,207.50 DESIGN/CONSTR - RSD/JAMUL PL 9,207.50 3/11/2026 18332 491857 2065514 4,308.44 PRINTING PIPELINE NEWSLETTER 3,998.55 3/18/2026 22274 69261 2065438 3,817.97 BACKFLOW REPAIR PARTS 3,543.36 3/4/2026 21692 0004679 JACQUELINE COSSANO 2/24/2026 JALAL JABRO 3/10/2026 KEVIN WINDER 3/2/2026 KIRK PAVING INC 9/16/2025 2/11/2026 JAZMIN GARCIA 3/16/2026 JON RAVAGLIOLI 3/10/2026 KEENAN & ASSOCIATES 3/2/2026 LORENA OLIVEROS 2/24/2026 MARCIANO SANTOS 3/4/2026 MAYRA BOUMAN 2/24/2026 KYMI DEVELOPMENT GROUP LLC 2/24/2026 LIFE INS COMPANY OF NORTH AMERICA 1/31/2026 LINDSAY POLIC CONSULTING INC 3/5/2026 MIGUEL BRIZUELA 3/10/2026 MILAD HEALU 3/10/2026 MUNIQUIP LLC 12/31/2025 MECHANICAL SOLUTIONS INC 3/4/2026 MERINO LANDSCAPE INC 2/28/2026 2/13/2026 2065513 6,209.00 2/28/2026 3/3/2026 OMNI GRAPHICS 2/21/2026 ONE STOP BACKFLOW SUPPLY 2/12/2026 NARLO ABENOJAR 2/24/2026 NORTH CAROLINA DEPT OF REVENUE 2/28/2026 NV5 INC 12/30/2025 3/18/2026 8:18:37 PM Page 5 Check Register Check Dates: 2/19/2026 thru 3/18/2026 2065439 3,499.72 INVENTORY 3,248.00 3/4/2026 1002 S100484912.002 2065515 392.75 INVENTORY 364.50 3/18/2026 1002 S100485994.001 2065412 1,267.73 UB REFUND 0000306882 1,267.73 2/25/2026 99999 ubRef022626014 2065397 17,285.72 HAZMAT CLEANUP SERVICE 17,285.72 2/25/2026 19354 23138 2065413 55.80 UB REFUND 0000276771 55.80 2/25/2026 99999 ubRef022626006 2065516 255.00 AS-NEEDED GRAPHIC DESIGN SERV 255.00 3/18/2026 15081 6439 2065440 1,939.68 FY26 AS-NEEDED SAFETY BOOTS 1,939.68 3/4/2026 19836 20260210069504 2065441 3,432.77 DUMP FEES 3,432.77 3/4/2026 15857 4531-000030664 AS-NEEDED TEMPORARY STAFFING 1,871.20 3/4/2026 30396 16367133 AS-NEEDED TEMPORARY STAFFING 1,906.29 3/4/2026 30396 1634929 2065517 1,871.20 AS-NEEDED TEMPORARY STAFFING 1,871.20 3/18/2026 30396 16369341 2065468 7,500.00 STRATEGIC PLAN CONSULT 7,500.00 3/11/2026 30548 000023 2065414 1,448.88 UB REFUND 0000304735 1,448.88 2/25/2026 99999 ubRef022626012 2065461 125.00 MONTHLY ASSESSOR DATA 125.00 3/11/2026 2586 202600210 2065518 473.58 SOCAL WATERSMART HEW HET WBIC 473.58 3/18/2026 3 3024 UTILITY EXPENSES - MONTHLY 37.10 2/25/2026 121 021126 UTILITY EXPENSES - MONTHLY 150.94 2/25/2026 121 021126A UTILITY EXPENSES - MONTHLY 1,008.98 3/4/2026 121 022626 UTILITY EXPENSES - MONTHLY 12,171.57 3/4/2026 121 022726 UTILITY EXPENSES - MONTHLY 67,738.41 3/4/2026 121 022526 UTILITY EXPENSES - MONTHLY 249.41 3/11/2026 121 030626 UTILITY EXPENSES - MONTHLY 1,494.66 3/11/2026 121 030326 UTILITY EXPENSES - MONTHLY 23,277.43 3/11/2026 121 030326A UTILITY EXPENSES - MONTHLY 28,001.46 3/11/2026 121 030526 UTILITY EXPENSES - MONTHLY 80,578.84 3/11/2026 121 030226 UTILITY EXPENSES - MONTHLY 37.61 3/18/2026 121 031126 UTILITY EXPENSES - MONTHLY 116.43 3/18/2026 121 030926B UTILITY EXPENSES - MONTHLY 7,804.29 3/18/2026 121 030926 PACIFIC PIPELINE SUPPLY INC 2/11/2026 3/5/2026 PINOMAKI DESIGN 3/1/2026 RED WING BUSINESS ADV ACCOUNT 2/10/2026 REPUBLIC SERVICES 2/15/2026 PACIFIC RIM HYDROSEEDING INC 2/24/2026 PATRIOT ENVIROMENTAL SERV INC 1/29/2026 PAUL WILLIAMS LIVING TRUST 2/24/2026 RS SQUARED LLC 2/18/2026 RYAN MILLENIA LOT 19 OWNER LLC 2/24/2026 SAN DIEGO COUNTY ASSESSOR 3/3/2026 ROTH STAFFING COMPANIES LP 2065442 3,777.49 2/13/2026 2/6/2026 2/20/2026 SAN DIEGO COUNTY WATER AUTH 2/25/2026 SAN DIEGO GAS & ELECTRIC 2065398 188.04 2/11/2026 2/11/2026 2065443 80,918.96 2/26/2026 2/27/2026 2/25/2026 2065462 133,601.80 3/6/2026 3/3/2026 3/3/2026 3/5/2026 3/2/2026 2065519 138,176.86 3/11/2026 3/9/2026 3/9/2026 3/18/2026 8:18:37 PM Page 6 Check Register Check Dates: 2/19/2026 thru 3/18/2026 UTILITY EXPENSES - MONTHLY 130,218.53 3/18/2026 121 030926A UNLEADED & DIESEL FUEL 9,280.46 3/18/2026 14708 0000309741 UNLEADED & DIESEL FUEL 15,211.77 3/18/2026 14708 0000309740 2065464 410.00 ON-DEMAND SECURITY RESPONSE 410.00 3/11/2026 19603 12487451 2065399 553.85 BI-WEEKLY PAYROLL DEDUCTION 553.85 2/25/2026 21115 9482 2065465 553.85 BI-WEEKLY PAYROLL DEDUCTION 553.85 3/11/2026 21115 9600 HVAC PREVENTIVE MAINT SERV 160.00 3/4/2026 15176 1471437 HVAC PREVENTIVE MAINT SERV 160.00 3/4/2026 15176 1471442 HVAC PREVENTIVE MAINT SERV 160.00 3/4/2026 15176 1471443 HVAC PREVENTIVE MAINT SERV 235.00 3/4/2026 15176 1471436 HVAC PREVENTIVE MAINT SERV 1,127.00 3/4/2026 15176 1471441 HVAC PREVENTIVE MAINT SERV 160.00 3/18/2026 15176 1475053 HVAC PREVENTIVE MAINT SERV 160.00 3/18/2026 15176 1475058 HVAC PREVENTIVE MAINT SERV 160.00 3/18/2026 15176 1475059 HVAC PREVENTIVE MAINT SERV 235.00 3/18/2026 15176 1475052 HVAC PREVENTIVE MAINT SERV 1,127.00 3/18/2026 15176 1475057 2065466 130.00 EXAM FEES FOR WATER DISTRIBUTOR 130.00 3/11/2026 1460 49831PG342026 2065400 2,000.00 COMMUNICATIONS CONSULTING 2,000.00 2/25/2026 18376 1865 2065467 2,145.00 UNMANNED AIRCRAFT SYSTEM 2,145.00 3/11/2026 21394 Otay 24 2065479 2,443.10 UB REFUND 0000305835 2,443.10 3/11/2026 99999 ubRef031226009 2065445 999.00 SUPERVISORS ACADEMY 999.00 3/4/2026 3236 TCFOE5412 2065522 480.00 FIRE SPRINKLER INSPECTION 480.00 3/18/2026 22498 771064 2065415 94.02 UB REFUND 0000294171 94.02 2/25/2026 99999 ubRef022626007 2065401 2,400.00 MUNIS ERP UPGRADE IMPLEMENT 2,400.00 2/25/2026 3261 045-552662 MUNIS ERP UPGRADE IMPLEMENT 800.00 3/4/2026 3261 045-553990 MUNIS ERP UPGRADE IMPLEMENT 2,400.00 3/4/2026 3261 045-553393 2065523 2,400.00 MUNIS ERP UPGRADE IMPLEMENT 2,400.00 3/18/2026 3261 045-554737 2065524 553.86 700 PUMP PARTS 514.02 3/18/2026 20837 0042398 DIGALERT CALIFORNIA MEMBERSHIP 300.68 3/18/2026 427 25262927 DIGALERT CALIFORNIA MEMBERSHIP 601.25 3/18/2026 427 220260524 PORT TOILET RENTAL 175.00 3/11/2026 15675 5945097 3/9/2026 3/16/2026 SECURITAS SECURITY SVC USA INC 3/3/2026 SONIA PONCE 2/26/2026 3/12/2026 SC FUELS 2065520 24,492.23 3/5/2026 3/5/2026 TEEDEEUAS LLC 3/6/2026 TEICHERT ENERGY AND UTILITIES 3/10/2026 THE CENTRE FOR ORGANIZATION 2/9/2026 3/16/2026 STATE WATER RESOURCES 3/4/2026 SVPR COMMUNICATIONS LLC 1/31/2026 SOUTHCOAST HEATING & AIR 2065444 1,842.00 2/16/2026 2/16/2026 2/16/2026 2/16/2026 2/16/2026 2065521 1,842.00 3/16/2026 3/16/2026 3/16/2026 THE HILLER COMPANIES 3/5/2026 TIFFANY HIRNEISEN 2/24/2026 TYLER TECHNOLOGIES INC 1/30/2026 2065446 3,200.00 2/18/2026 2/11/2026 2/25/2026 UNITED SITE SERVICES INC 2065480 1,042.77 3/3/2026 UGSI CHEMICAL FEED INC 2/24/2026 UNDERGROUND SERVICE ALERT 2065525 901.93 3/1/2026 3/1/2026 3/18/2026 8:18:37 PM Page 7 Check Register Check Dates: 2/19/2026 thru 3/18/2026 PORT TOILET RENTAL 848.00 3/11/2026 15675 5944797 2065526 45,334.23 LEAK DETECTION SERVICE 45,334.23 3/18/2026 18517 126810 CMIS (JAN 2026) 1,020.00 2/25/2026 8028 SD545828 CMIS (JAN 2026) 1,360.00 2/25/2026 8028 OWD1485TC13 CMIS (JAN 2026) 1,870.00 2/25/2026 8028 OWD711PS03 CMIS (JAN 2026) 38,805.00 2/25/2026 8028 SD24030517 CMIS (FEB 2026) 850.00 3/18/2026 8028 SD545829 CMIS (FEB 2026) 1,700.00 3/18/2026 8028 OWD711PS04 CMIS (FEB 2026) 35,235.00 3/18/2026 8028 SD24030518 2065417 521.85 FY26 WATER INTERNS 521.85 2/25/2026 20909 47219229 DECOMPOSED GRANITE 3,416.38 3/18/2026 16114 5707889 DECOMPOSED GRANITE 4,484.94 3/18/2026 16114 5707948 2065447 140.00 BEE REMOVAL SERVICE 140.00 3/4/2026 1343 93704 2065529 14,485.79 MISC SAFETY EQUIPMENT (P2719) 13,521.50 3/18/2026 3637 0001716 2065530 3,500.00 ADMIN LANDSCAPE DESIGN REFRESH 3,500.00 3/18/2026 20611 0011699 2065448 4,590.00 HYDRAULIC MODELING 4,590.00 3/4/2026 19866 200952 2065481 1,980.00 COTTONWOOD SEWER PS REPLACE 1,980.00 3/11/2026 19866 200985 Total 1,396,934.55 3/3/2026 VOLT WORKFORCE SOLUTIONS 2/8/2026 VULCAN MATERIALS COMPANY 2065528 7,901.32 2/25/2026 2/25/2026 UTILITY SERVICES ASSOC LLC 3/3/2026 VALLEY CONSTRUCTION MANAGEMENT 2065416 43,055.00 2/5/2026 2/5/2026 2/5/2026 2/5/2026 2065527 37,785.00 3/2/2026 3/2/2026 3/3/2026 WOOD RODGERS INC 1/31/2026 1/31/2026 WE GOT YA PEST CONTROL INC 2/19/2026 WEST COAST SAFETY 3/2/2026 WIMMER YAMADA AND CAUGHEY 3/5/2026 3/18/2026 8:18:37 PM Page 8