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Home My WebLink About05-13-26 Board Meeting Packet1 OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY BOARD OF DIRECTORS MEETING BY TELECONFERENCE 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA WEDNESDAY May 13, 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 APRIL 1, 2026, AND THE SPECIAL BOARD MEETING OF APRIL 20, 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 Board meeting is live streamed via Zoom. Information on how to par-ticipate in the meeting can be found at this link: https://otaywater.gov/board-of-di-rectors/agenda-and-minutes/board-agenda/. The public is welcome to attend the meetings in person or via the Zoom livestream. Those wishing to address the Board may do so in-person or virtually. Requests to provide comments virtually will be acknowledged during the “Public Participation” portion of the meeting. At that time, please use the “Raise Hand” feature in the Zoom platform; you will then be prompted to unmute. If you are join- ing the meeting by phone (calling in), dial *9 on your phone keypad to raise or lower your hand. 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. The Board is not permitted to enter into a dialogue with speakers during this time. 2 Members of the public may also submit their comments on agendized and non- agendized items via email to BoardSecretary@otaywater.gov or via the “Board Meeting/Public Comment Submission Form”. To ensure timely consideration, we request that comments be submitted at least 30 minutes prior to the start of the meeting. Written comments will be read and entered into the record or provided to the Board during the “Public Participation” portion of the meeting. CONSENT ITEMS: 6. 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) AWARD TWO (2) ON-CALL SERVICE AGREEMENTS AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE TWO (2) AGREEMENTS FOR ON- CALL SUPPLEMENTAL WATER/SEWER/RECYCLED GENERAL INFRA- STRUCTURE MAINTENANCE AND REPAIR SERVICES WITH FILANC AND HPS MECHANICAL, INC., EACH IN AN AMOUNT NOT-TO-EXCEED $1,000,000 FOR FISCAL YEAR 2027, WITH FOUR (4) ONE-YEAR OPTIONS TO RENEW AT THE DISCRECTION OF THE GENERAL MANAGER (ZAC THORNTON) b) AWARD A CONSTRUCTION CONTRACT TO JENNETTE COMPANY, INC. (JENNETTE) AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH JENNETTE FOR THE VISTA DIEGO HYDROPNEU- MATIC PUMP STATION IMPROVEMENTS – PHASE I IN AN AMOUNT NOT- TO-EXCEED $389,900 (JEFF MARCHIORO) c) APPROVAL OF CHANGE ORDER NO. 1 IN AN AMOUNT NOT-TO-EXCEED $96,031 TO EXISTING PURCHASE ORDER (PO) NO. 20250128 WITH BRAX COMPANY, INC. TO REPLACE RATHER THAN REBUILD PUMP STATION #1 AT THE 980-1 PUMP STATION, FOR A REVISED TOTAL PO AMOUNT OF $166,021 (JEFF MARCHIORO) d) AUTHORIZE THE GENERAL MANAGER TO ENTER INTO A FIVE-YEAR SEWER BILLING SERVICES AGREEMENT WITH THE CITY OF CHULA VISTA AND TO EXECUTE, AT HIS DISCRETION, ONE (1) ADDITIONAL FIVE-YEAR EXTENSION (JON RAVAGLIOLI) e) RECEIVE THE DISTRICT’S INVESTMENT POLICY OF THE DISTRICT’S CODE OF ORDINANCES FOR REVIEW AND RE-DELEGATE AUTHORITY FOR ALL INVESTMENT-RELATED ACTIVITIES TO THE CHIEF FINANCIAL OFFICER, IN ACCORDANCE WITH GOVERNMENT CODE SECTION 53607 (JON RAVAGLIOLI) ACTION ITEM: 7. BOARD 3 a) DISCUSS THE 2026 BOARD MEETING CALENDAR (JENNY DIAZ) INFORMATIONAL ITEMS: 8. THE FOLLOWING ITEMS ARE PROVIDED TO THE BOARD FOR INFORMA- TIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEMS: a) UPDATE ON THE DISTRICT-WIDE METER CHANGEOUT PROJECT (AN-DREA CAREY) b) FISCAL YEAR 2026 MID-YEAR UPDATE FOR THE DISTRICT’S FISCAL YEAR 2023-2026 STRATEGIC PLAN (MICHAEL KERR) REPORTS 9. GENERAL MANAGER’S REPORT 10. SAN DIEGO COUNTY WATER AUTHORITY UPDATES 11. METRO WASTEWATER JOINT POWERS AUTHORITY UPDATES 12. PRESIDENT’S REPORT/REQUESTS 13. DIRECTORS' REPORTS/REQUESTS RECESS TO CLOSED SESSION 14. CLOSED SESSION a) EVALUATION OF GENERAL COUNSEL PURSUANT TO GOVERNMENT CODE §54954.5 b) PUBLIC EMPLOYEE PERFORMANCE EVALUATION [GOVERNMENT CODE §54957.6] TITLE: GENERAL MANAGER RETURN TO OPEN SESSION 15. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION. OTAY WATER DISTRICT FINANCING AUTHORITY 16. NO MATTERS TO DISCUSS 17. ADJOURNMENT 4 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 April 1, 2026 The meeting was called to order by President Rivera at 3:30 p.m. 1. ROLL CALL Directors Present: Rivera, Robak, Gonzalez, and Croucher Directors Absent: Lopez Staff Present: General Manager, Jose Martinez; General Counsel, Dan Shinoff; Chief Financial Officer, Joe Beachem; Chief of Administrative Services, Kevin Koeppen; Engineering Manager, Michael Long; Chief of Operations, Andrew Jackson; and District Secretary, Jenny Diaz. 2. PLEDGE OF ALLEGIANCE 3. APPROVAL OF AGENDA President Rivera indicated that Board action was required to approve the remote attendance of Director Croucher. A motion to approve the remote attendance of Director Croucher was made by Director Robak, seconded by Director Gonzalez, and carried with the following vote: Ayes: Directors Rivera, Robak, and Gonzalez Noes: None Abstain: Director Croucher Absent: Director Lopez A motion to approve the agenda was made by Director Croucher, seconded by Director Gonzalez, and carried with the following vote: Ayes: Directors Rivera, Robak, Gonzalez, and Croucher Noes: None Abstain: None Absent: Director Lopez 4. APPROVAL OF THE MINUTES OF THE REGULAR BOARD MEETING OF MARCH 4, 2026 AGENDA ITEM 4 2 A motion to approve the minutes of the regular board meeting of March 4, 2026, was made by Director Robak, seconded by Director Gonzalez, and carried with the following vote: Ayes: Directors Rivera, Robak, Gonzalez, and Croucher Noes: None Abstain: None Absent: Director Lopez 5. 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 President Rivera 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. ACTION ITEMS 6. BOARD a) ADOPT THE LEGISLATIVE PROGRAM POLICY GUIDELINES AND THE ANTICIPATED 2026 TOP 10 LEGISLATIVE AND REGULATORY PRIORITIES (TENILLE OTERO) Communications Officer, Tenille Otero, presented the District's Legislative Program Policy Guidelines and Top 10 Priorities for 2026, which provide a framework for responding to legislation. Staff recommended maintaining the 2025 format. Ms. Otero introduced Baltazar Cornejo, Senior Policy Advisor, at Brownstein Hyatt Farber Schreck, LLP. Mr. Cornejo presented a legislative overview, noting that approximately 1,800 bills were introduced. Key topics included those shown in the attached presentation. Board members were provided an opportunity for comments and/or questions. President Rivera inquired about affordability and the funding source for rate assistance, specifically whether it would come from the general fund. Mr. Cornejo indicated that the general fund has been the source discussed. President Rivera further inquired about water supply management, noting that he had heard about the DCP project and related opposition, and asked Mr. Cornejo if he recalled the specific concerns raised. Mr. Cornejo indicated that Native American tribes and environmental organizations have raised concerns about the impacts of constructing the tunnel, noting that the cost-benefit analysis does not appear to align. 3 Director Croucher thanked staff for providing the information requested. He noted that the Board had previously requested the ability to evaluate the history of baseline changes for year-to-year comparisons, and staff responded by providing that information. Following the Directors’ comments, a motion to adopt the Legislative Program Policy Guidelines and the Anticipated 2026 Top 10 Legislative and Regulatory Priorities was made by Director Gonzalez, seconded by Director Robak, and carried with the following vote: Ayes: Directors Rivera, Robak, Gonzalez, and Croucher Noes: None Abstain: None Absent: Director Lopez 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 DIRECTORS’ PER DIEM RATE FOR ATTENDING MEETINGS AND PERFORMING THE DUTIES OF THEIR OFFICE a) ADOPT ORDINANCE NO. 603 TO APROVE THE PROPOSED 4.97% INCREASE TO THE BOARD OF DIRECTORS’ PER DIEM RATE FOR ATTENDING MEETINGS AND PERFORMING THE DUTIES OF THEIR OFFICE, AND ADOPT RESOLUTION NO. 4471 AMENDING POLICY 08 TO REFLECT THE NEW PER DIEM RATE President Rivera opened the public hearing and General Manager Martinez presented the resolution. The General Manager indicated that, by law, the Board’s per diem may be updated annually, not to exceed 5%, and that the current proposal reflects a modest increase of just under 5%. The resolution is intended to amend the per diem and incorporate administrative updates only, with no functional changes, reflecting updated language and revised committee and group names. President Rivera opened the public hearing for comments. Following no public comments, President Rivera closed the public hearing. Board members were provided an opportunity for comments and/or questions. Following no comments or questions from the Board, a motion to adopt Ordinance No. 603 to approve the proposed 4.97% increase to the Board’s per diem rate and adopt Resolution No. 4471 amending Policy 08 to reflect the new per diem rate was made by Director Robak, seconded by Director Gonzalez, and carried with the following vote: 4 Ayes: Directors Rivera, Robak, Gonzalez, and Croucher Noes: None Abstain: None Absent: Director Lopez 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 HANDLING PROCEDURE, TO DELEGATE AUTHORITY TO THE GENERAL MANAGER TO TAKE ACTION ON GOVERNMENT CLAIMS (JOSE MARTINEZ) b) AUTHORIZE THE GENERAL MANAGER TO ENTER INTO A PROFESSIONAL SERVICES AGREEMENT WITH REWARD STRATEGY GROUP, INC. FOR A CLASSIFICATION AND TOTAL COMPENSATION AND BENEFITS STUDY FOR A TOTAL AMOUNT NOT-TO-EXCEED $119,480 (SUZIE LAWSON) President Rivera asked if any Directors had any comments; they did not. A motion to approve the consent calendar items was made by Director Robak, seconded by Director Gonzalez, and carried with the following vote: Ayes: Directors Rivera, Robak, Gonzalez, and Croucher Noes: None Abstain: None Absent: Director Lopez ACTION ITEMS 9. BOARD a) APPROVE THE DISTRICT’S PROPOSED FY2027 – FY2030 STRATEGIC PLAN (MICHAEL KERR) Information Technology Manager, Michael Kerr, began by acknowledging the Board and General Manager for their support throughout the process. He noted that contributions from the Chiefs and staff were also instrumental in developing the Strategic Plan. Mr. Kerr introduced representatives from The Hive Consulting Group, Rex Sanders and Rafael Silva, who were present to address questions from the Board. Mr. Kerr expressed his appreciation for their support throughout this process. Mr. Kerr presented the proposed plan as summarized in the attached presentation. 5 President Rivera indicated it was great working with The Hive and staff on the Strategic Plan update. President Rivera inquired about adopting new technology for asset management. Staff confirmed they are exploring vetted technologies. Director Croucher indicated he had no questions and stated he was comfortable with the Strategic Plan after reviewing it with the General Manager. Director Gonzalez inquired about leadership development programs and whether they had been previously established or were new. Chief of Administrative Services, Kevin Koeppen, indicated that this is a continuation of an existing initiative in the Strategic Plan. Mr. Koeppen noted that the District supports staff development through training opportunities, including programs with The Centre for Organization Effectiveness, as well as internal processes for identifying and developing leaders, and additional training for new supervisors and managers on topics they may not have previously encountered. Noting the District’s answer rate, Director Gonzalez expressed concern over the District’s low public Google rating, urging focus on improving public-facing satisfaction metrics. Director Robak sought more detail on the AI component and stressed its importance for efficiency. General Manager Martinez confirmed it’s a standalone initiative and the District must first establish an AI governance framework. Director Robak commented on the communications demographic, noting that it is foundational. He emphasized the importance of using all available avenues to effectively reach customers and expressed confidence in the District’s communications strategy. Director Robak also inquired why certain metrics were not benchmarked against AWWA standards. Mr. Kerr explained that many of the metrics are not included in AWWA benchmarks and noted that they were originally established by a prior Board and staff. Following no further comments from the Board, a motion to approve the District’s proposed Fiscal Year 2027 – 2030 Strategic Plan was made by Director Croucher, seconded by Director Robak, and carried with the following vote: Ayes: Directors Rivera, Robak, Gonzalez, and Croucher Noes: None Abstain: None Absent: Director Lopez The Hive representative, Mr. Sanders, thanked the Board for inviting him and Mr. Silva to today’s meeting. He noted that they do not often have the opportunity to see how their work is implemented and expressed appreciation for the collaboration with 6 the Board and staff. President Rivera thanked Mr. Sanders for his remarks and for his assistance in supporting the District’s Strategic Plan. b) DISCUSS THE 2026 BOARD MEETING CALENDAR (JENNY DIAZ) District Secretary Jenny Diaz reminded the Board of the upcoming committee and special board meetings, which are scheduled as follows: The Engineering, Operations, and Water Resources Committee meeting will be held on Wednesday, April 22, 2026, at 12:00 pm. The Finance & Administration Committee meeting will be held on Thursday, April 23, 2026, at 12:00 pm. The Special Board Meeting for the Budget Workshop will be held on Monday, April 20, 2026, at 12:00 pm. General Manager Martinez also reminded the Board of its prior approval to reschedule the May Board meeting, which will now be held on Wednesday, May 13, 2026. No other changes were noted or made to the Board meeting calendar. REPORTS 10. GENERAL MANAGER’S REPORT General Manager Martinez announced the District’s 70th anniversary commemoration, noting its theme of “70 Years of Service to Our Community”. He noted that staff continue working on finalizing the webpage and social media efforts, developing outreach materials, and will continue promoting the anniversary throughout the year. He also reported the sobering news from the April 1st snowpack survey, which indicated the second-lowest measurement on record (less than 20% of the normal). 11. SAN DIEGO COUNTY WATER AUTHORITY UPDATE President Rivera reported on a new water transfer agreement with Western Municipal Water District (expected to bring in about $100 million over 30 years), a tour of the Colorado River Aqueduct, and a tour of the Carlsbad Desalination Plant. Director Robak expressed concern that the Carlsbad Desalination Plant is on leased land, which could complicate a future purchase by the Water Authority. 12. METRO WASTEWATER JOINT POWERS AUTHORITY UPDATE Director Robak indicated there was nothing to report as last month’s meeting was cancelled and the next meeting is scheduled for tomorrow, April 2nd. 7 13. PRESIDENT’S REPORT/REQUESTS President Rivera stated that he was not present at the last Board meeting but reported on February’s events, including ad hoc meetings with Legal Counsel, agenda committee briefings/review, CSDA San Diego Chapter Meeting on cybersecurity, and the east/south caucus meeting with CWA’s General Manager. President Rivera’s written report will be submitted to the District Secretary, which will be attached to the minutes for today’s meeting. 14. DIRECTORS’ REPORTS/REQUESTS Director Croucher had nothing to report but reported that he continues to improve and appreciates the support. Director Gonzalez provided the attached presentation on the Water Reuse 2026 Symposium, which she attended last month. She emphasized the rebranding of "water reuse" to "pure water," the importance of youth education, and building community trust. She recommended expanding educational pathways and enhancing collaboration with other water agencies in the region, to avoid “reinventing the wheel” in public education and outreach. Director Robak reported on a Helix Water District event for a new large-scale EV charging project, expressed concern about threats to global water infrastructure, and shared a social media post he created with gemini-2.5-pro depicting a conceptual nuclear-powered desalination plant. Directors’ written reports will be submitted to the District Secretary, which will be attached to the minutes for today’s meeting. OTAY WATER DISTRICT FINANCING AUTHORITY 15. NO MATTERS TO DISCUSS There were no items scheduled for discussion for the Otay Water District Financing Authority board. 16. ADJOURNMENT With no further business to come before the Board, President Rivera adjourned the meeting at 5:06 p.m. President 8 ATTEST: District Secretary MARCH 31,2026 A FRESH LOOK AT THE Lessons inspired by the Opening General Session and the Albert Robles Education Center tour, with a focus on how water education can strengthen public trust, stewardship, and long-term resilience. MARCH 31,2026 Water education is not a side activity — it is part of the work. One of the clearest messages from the Symposium was that water leadership today must include public understanding, not just technical excellence. In the Opening General Session, Philippe Cousteau helped frame education as a force multiplier for environmental action and intergenerational stewardship. His leadership through EarthEcho International, which has activated more than 2 million youth in 146 countries, reinforces a powerful truth: when people understand water, they are more ready to protect it. BIG TAKEWAY WHAT STOOD OUT AT THE ALBERT ROBLES EDUCATION CENTER The strongest lesson: infrastructure can also be a classroom. The Albert Robles Education Center was presented as more than an advanced water treatment site. It is a LEED Platinum campus that combines a state-of-the-art purification facility with a fully digital bilingual Learning Center, demonstration gardens, and public gathering spaces. The tour highlighted the treatment process — ultrafiltration, reverse osmosis, and ultraviolet advanced oxidation — while also showing how interactive exhibits and landscape features help the public understand the full water story. The model was powerful because it connected technology, place, and public learning in one experience. MARCH 31,2026 MARCH 31,2026 WHAT WRD SHOWED THROUGH ITS EDUCATION MODEL Education works best when it is visible, layered, and designed for many audiences. From the session slides and remarks, WRD showed an outreach model that welcomes community members, elected officials, visitors, and peer agencies into the learning process. Their approach includes public tours, school engagement, student art programming, eco-gardener education, and workforce development. The facility also includes 40 bilingual water exhibits and more than an acre of demonstration gardens, showing how education can be immersive, multilingual, and rooted in everyday experience. WHY THIS MATTERS FOR OTAY Otay already has real building blocks for a stronger water education strategy. Otay already supports an annual student poster contest, Hydro Station, Splash Science Labs, school assemblies, and education partnerships that help students learn about the water cycle, water quality, conservation, and careers in the water sector. Otay is also connected to the Water Conservation Garden, which offers public classes, school tours, adult group tours, and outreach programming. MARCH 31,2026 At the same time, Otay’s long-term planning emphasizes conservation, recycled water, and reducing demand for more expensive imported water. That makes public education especially important: people are more likely to support wise water policy when they understand where water comes from and how local resilience is built. WHAT WE CAN BRING HOME I believe Otay can deepen its leadership in water education by making it more connected, more visible, and more community-facing. Create a clearer education pathway from elementary learning to adult public education and workforce awareness. Tell the water story more simply and more visually — especially around imported water, conservation, recycled water, and regional resilience. Expand multilingual and interactive public learning tools so education reaches families across generations and language communities. Make tours and civic learning more intentional for residents, schools, elected leaders, and community partners. Elevate student creativity through poster, art, or calendar-style programs that keep water education visible all year long. Connect education to future careers so young people can see themselves in the water sector. MARCH 31,2026 MARCH 31,2026 THE VISIONIN ACTION Water education is how we build trust before crisis, stewardship before scarcity, and leadership before the next generation is asked to carry more than it should. MARCH 31,2026 THANKYOU SUMMARY OF FORMAL BOARD OF DIRECTORS’ MEETING MARCH 19, 2026 1.Exchange Water Delivery Agreement with Western Municipal Water District.The Board ratified an Exchange Water Delivery Agreement Between the San Diego County WaterAuthority and Western Municipal Water District. 2.Amend Agreement for Consulting Services with M Strategic Communications. The Board amended the agreement with M Strategic Communications for continued consultingservices for the Water Authority through February 29, 2028, by $192,000 for a period of 24additional months with total contract funding not to exceed $2,562,000. 3.Monthly Treasurer’s Report on Investments and Cash Flow. The Board noted and filed the monthly Treasurer’s Report 4.Approve City of San Diego Compensation Agreements and Accept Proceeds from the Transfer ofFormer Redevelopment Agency Parcels in San Diego, California. 1) The Board authorized the General Manager to enter into a compensation agreement with the City of San Diego and accepted proceeds from real property transfer to the City (NavalTraining Center Site) amounting to $2,742.07; and2) The Board authorized the General Manager to enter into a compensation agreement with theCity of San Diego and accepted proceeds from real property transfer to the City (Walker Scott Site) amounting to $1,664.05; and 3) The Board authorized the General Manager to enter into a compensation agreement with theCity of San Diego and accepted proceeds from real property transfer to the City (ChineseHistorical Museum Site) amounting to $337.15. 5.Approve Capacity Fee Refund to KD Logan LLC. The Board authorized the General Manager to issue a capacity charges refund in the amount of$107,179.00 to KD Logan LLC (property owner). 6.Approve the Recommended Debt Management Activities. 1) The Board authorized staff to schedule Debt Management Activities including the issuance of a new Senior Lien Water Revenue Bond to fund the Capital Improvement Program,restructuring Series 11 of the Commercial Paper Program, and refunding of select Senior Lienbonds; and2) The Board authorized the selection of the Financing Parties for associated Debt Management Activities. 2 7.Adopt positions on various bills.1) The Board adopted a position of Oppose on H.R. 7078, the Equal Access to the ColoradoRiver Act (Schweikert); and2) The Board adopted a position of Support on S. 3923, the Weather Research and ForecastingInnovation Reauthorization Act (Cruz and Cantwell); and 3) The Board adopted a position of Support on AB 2180, Proposition 218 OmnibusImplementation Act: proportional cost of service (Ward); and4) The Board adopted a position of Oppose unless amended on AB 2013, Fire risk areas: watersuppliers: emergency preparedness plan (Bennett); and5) The Board adopted a position of Support on SB 1153: Disaster preparedness: urban retail water suppliers and public water systems: wildfire (Caballero). 8.Approval of Minutes.The Board approved the minutes of the Formal Board of Directors’ meetings of February 26,2026. OTAY WATER DISTRICT BOARD OF DIRECTORS PER DIEM AND MILEAGE CLAIM FORM Pay To: Francisco X. Rivera Period Covered: Employee Number: From: 03/01/26 To: 03/31/26 ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED 1 03/17/26 SDCWA Agenda Briefing Meeting with GM & Director Robak. Discussed SDCWA Agenda items: Transfer Agreement with Western Municipal Water Authority, FY budget & contracts (Teams). 2 03/18//26 SDCWA South & East Caucus meeting at Denny’s Navajo Road, El Cajon. Local Water Authority meeting with SDCWA GM to discuss Board Agenda items (Water Transfer). 3 03/18/26 Ad Hoc OWD Negotiations Meeting with consultant (Teams). Discussed necessary work items for upcoming employee labor contract with GM, Director Lopez and consultant team (Teams). (No Charge) 4 03/26/26 OWD Board of Directors Agenda Briefing with Acting GM Jackson. Reviewed the draft April OWD Board of Directors agenda with Acting GM Jackson & Legal Counsel D. Shinoff (Teams). 5 03/30/26 Phone call meeting with OWD GM on April Board meeting & matters. Phone call meeting with OWD GM Martinez to discuss Board Agenda items & OWD matters. Mark Robak From:3/1/2026 3/31/2026 ITEM DATE MEETING PURPOSE / ISSUES 1 3/4/2026 Otay Water District Monthly Board Meeting 2 3/6/2026 East County Chamber of Commerce First Friday Breakfast - NO CHARGE 3 3/12/2026 Otay Water District Committee Agenda Briefing 4 3/17/2026 East County Chamber of Commerce Government Affairs Committee 5 3/17/2026 Otay Water District Discuss upcoming SDCWA Board Meeting with Otay GM - NO CHARGE 6 3/18/2026 East County Caucus Discuss upcoming SDCWA Board Meeting with neighboring agencies - NO CHARGE 7 3/18/2026 East County EDC Monthly Board Meeting - NO CHARGE 8 3/18/2026 East County Chamber of Commerce Dine & Dialogue with Supervisor Joel Anderson -NO CHARGE 9 3/18/2026 Otay Water District Conservation, Public Relations, Legal, and Legislative (CPRL&L) Committee 10 3/20/2026 East County Chamber of Commerce Chamber Coffee Connect at Rancho San Diego YMCA - NO CHARGE 11 3/26/2026 East County Chamber of Commerce Monthly Board Meeting 12 3/27/2026 Helix Water District Grand opening of their electric vehicle charging hub - NO CHARGE OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To:Period Covered Employee Number BOARD OF DIRECTORS MEETINGS ATTENDED FORM Submitted by the District Secretary on behalf of the Board Director Pay To: Jose Lopez Period Covered: 03/01/2026 to 03/31/2026 ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED 1 03/03/26 South County Economic Development Council Monthly Meeting 2 03/04/26 OWD Regular Board Meeting Monthly Meeting 3 03/06/26 Water Conservation Garden Tomatomania 4 03/12/26 Other - Pre-approved by the Board President FLOW Monthly Meeting (Zoom) 5 03/18/26 OWD Committee Meeting CPRL&L 6 03/18/26 Other - No Charge Employee Negotiations 7 03/27/26 Other - No Charge Albondigas 1 MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING OF THE OTAY WATER DISTRICT April 20, 2026 President Rivera called the meeting to order at 12:06 p.m. 1. ROLL CALL Directors Present: Rivera, Robak, Gonzalez, Croucher, and Lopez Directors Absent: None Staff Present: Jose Martinez, General Manager; Dan Shinoff, General Counsel; Michael Long, Chief of Engineering; Joe Beachem, Chief Financial Officer; Kevin Koeppen, Chief of Administra- tive Services; Andrew Jackson, Chief of Operations; Suzie Lawson, HR Manager; Jon Ravaglioli, Finance Manager; Beth Gentry, Engineering Manager; Michael Kerr, IT Man- ager; and District Secretary Jenny Diaz. President Rivera indicated that Board action was required to approve the remote attendance of Director Croucher. 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 Rivera, Robak, Gonzalez, and Lopez Noes: None Abstain: Director Croucher Absent: None 2. PLEDGE OF ALLEGIANCE 3. APPROVAL OF AGENDA A motion to approve the agenda was made by Director Robak, seconded by Director Lopez, and carried with the following vote: Ayes: Directors Rivera, Robak, Gonzalez, Croucher, and Lopez Noes: None Abstain: None Absent: None 4. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD’S JURIS- DICTION INCLUDING AN ITEM ON TODAY’S AGENDA 2 No one wished to be heard during this time; however, a request to address the Board was made later and addressed during Agenda Item #6. PUBLIC HEARING 5. COMPLIANCE WITH NEW LEGAL OBLIGATIONS REGARDING PUBLIC HEARING ON OTAY WATER DISTRICT VACANCIES AND RECRUITMENT AND RETENTION EFFORTS (ASSEMBLY BILL 2561 GOVERNMENT CODE SECTION 3502.3) President Rivera opened the Public Hearing at 12:08 p.m. Suzie Lawson, HR Manager, provided a PowerPoint presentation to the board outlining future hiring needs and current recruitment strategies. It was noted that Assembly Bill 2561 was signed into law on September 22, 2024, to address the issue of job vacancies in local government. At approximately 12:10 pm, President Rivera paused the meeting due to technical diffi- culties, and the meeting resumed at approximately 12:23 pm. Ms. Lawson continued her presentation and responded to the Board’s questions, com- ments and input as follows: President Rivera asked whether part-time positions or internships were included in the reported statistics. Ms. Lawson clarified that they were not, and that the data reflects only full-time positions. Director Robak commented on recruitment methodologies and asked whether staff tracked where most applications originate from. Ms. Lawson indicated that they do and noted that, following last year’s meeting, LinkedIn was specifically added as a tracking source. She further reported that, within the calendar year, 1,984 applications were re- ceived, of which 41 applicants indicated they learned of the vacancy through LinkedIn. Governmentjobs.com was identified as the primary source where applicants learned of an Otay vacancy. Numerically, this represents 85% of applications originating from Gov- ernmentjobs.com, Indeed, and the Otay website. Director Gonzalez requested that staff consider hosting a job fair at local community colleges. Ms. Lawson indicated that staff currently conduct outreach to local colleges and referenced the upcoming high school internship program. General Manager Mar- tinez noted that the Cuyamaca College website provides information and guidance re- garding employment opportunities. With no further comments, President Rivera closed the Public Hearing at 12:29 p.m. and no action was taken by the Board. WORKSHOP 6. DISCUSSION OF THE FISCAL YEAR 2027 BUDGET KEY FIGURES AND ASSUMP- TIONS IMPACTING THE UPCOMING BUDGET PROPOSAL 3 Joe Beachem, Jose Martinez, Jon Ravaglioli, and Beth Gentry provided a PowerPoint presentation to the Board on the proposed upcoming budget. Mr. Beachem presented the budget’s objectives, timeline, and general process, and re- sponded to the Board’s questions, comments and input as follows: In response to President Rivera’s question regarding the cost-of-service study (COSS) and the timing of the next Prop 218 hearing, staff confirmed that the COSS will com- mence this July 2026. The COSS needs to be completed in advance of the next budget cycle so its findings can be incorporated. The budget would then go to the Board for approval the following July (2027), with the Prop 218 hearing taking place the following October. Director Robak inquired whether the previous COSS aligned with projections for the actual cost to treat both water and sewer. Staff confirmed that the sewer COSS was completed last year with a corresponding five-year plan approved. Mr. Martinez briefed the Board on challenges, the District’s actions, and strengths, and responded to the Board’s questions, comments and input as follows: The challenges of a transitioning workforce were analyzed, leading to a discussion of employee demographics. President Rivera requested clarification regarding updates to the cross-connection con- trol handbook. Andrea Carey, Customer Service Manager, explained that the handbook was adopted by the State Water Resources Control Board approximately 1.5 to 2 years ago. Although it has been adopted, revisions can still be made, as staff has already observed. She added that staff continue to work with the San Diego County Water Au- thority to advocate to state representatives on areas they believe require further clarifi- cation in the handbook. Director Croucher inquired about statistics related to racial diversity. Staff indicated they would follow up with that information. President Rivera asked whether the District is improving its financial standing in the view of rating agencies and investors. Staff indicated that achieving a higher credit rating (e.g., AAA) would require raising rates to generate more money, creating a balanced act. A higher rating is not automati- cally better for the District if it negatively impacts ratepayers. Staff further noted that the interest rate savings between an A and AA-rating are signif- icant, but the savings from moving from AA to AAA are less substantial compared to the cost required to get there. Staff indicated they are very comfortable at the AA rating, noting the District is financially strong and well-positioned to manage market fluctua- tions, and clarified that the District is not actively seeking a AAA-rating, rather focusing on maintaining its AA-rating. 4 In response to President Rivera’s inquiry about whether the District is positioned to se- cure the most favorable rates when issuing bonds, staff confirmed that it is and noted that financial advisors are utilized to determine the appropriate rating agency for specific financing needs. Director Croucher inquired about the District’s credit rating compared to surrounding agencies. Staff indicated that a few agencies in the County hold an AA+ rating, while most are rated AA. A request was made by Director Croucher to get a comparative breakdown of the District’s rating relative to surrounding agencies. Mr. Ravaglioli presented on the Fiscal Year 2027 Administrative and Material Budget Impacts, and responded to the Board’s questions, comments and input as follows: Regarding identified key savings (offsetting increases), Director Gonzalez requested that these be clearly highlighted during the budget presentation to the Board to ensure they are visible to the public. A discussion was held regarding “regulatory creep” and its year-over-year comparison. Staff acknowledged that “creep” may not be the most appropriate term and indicated it will be revised moving forward. Regarding insurance premiums, Director Robak asked what the decrease was attributed to. Staff indicated the premiums are decreasing due to a positive trend in the company's experience modifier, which is based on a three-year rolling average of claims. Staff fur- ther noted that a "bad” loss year of claims from FY21 has rolled off the calculation period, and that by absorbing main break costs in-house and submitting fewer claims, the Dis- trict expects this positive trend to continue, further lowering premiums in the future. Director Gonzalez raised a question regarding election costs and staff stated they are charged based on voter population and are variable. Staff indicated the election fees included in the budget are what the Registrar of Voters charge for conducting the elec- tions, further noting that the fee is not flat, but rather calculated based on the voter pop- ulation in the specific area and can change annually based on the county' own cost calculations. Ms. Gentry presented on the CIP Program, and responded to the Board’s questions, comments and input as follows: Director Gonzalez made an inquiry regarding the disposal of an old hydro pneumatic tank. Staff indicated that the tank in question provided pressure stabilization for one of the smaller pressure zones, and that the old tank was recycled, not disposed of in a landfill. Asking whether the District received money for the recycled metal, staff indicated they believe they did but the specific amount was not immediately known. President Rivera asked about projects falling behind schedule due to external factors and whether funding limitations under the CIP are a contributing factor. Staff referenced Policy No. 6, noting that it permits staff to continue advancing work, even if projects progress faster than the fiscal year allocation, so long as spending remains within the total approved project budget. Staff further noted that under certain conditions if either 5 the fiscal year spending or the total project budget needs to be exceeded, they must return to the Board for approval. In response to President Rivera’s concern that funds may remain unused when projects do not progress as scheduled, staff noted that the District maintains a queue of projects that can be advanced to help meet spending targets (e.g., 95%) when delays occur, provided the budget is available. Responding to Director Gonzalez’s inquiry, staff stated the District actively seeks grants and employs a consultant to monitor available grants and regularly brainstorms applica- ble projects. The District applies for many grants. Having recently received a grant for electric vehicles (EVs), staff are transitioning the District’s fleet to EVs. Staff further noted that, following the Board’s recent approval of zero-emission vehicle charging sta- tions, these stations will be installed at Operations to support the expanding fleet, and clarified that the new charging stations being installed are 220-volt (Level 2), not Level 3 fast chargers. Director Robak brought up the topic of AI technology. Staff indicated they are exploring AI to enhance operational efficiency and asset management, noting that they are cur- rently evaluating their hydraulic model and considering AI tools, which often integrate with models developed by consultants. When asked whether AI has been useful, staff responded that it has. Director Croucher expressed appreciation for staff’s continued pursuit of grants and in- quired whether the cost of staff time for auditing and managing grants is factored into their overall value. Staff indicated that the cost of in-house staff to manage consultants and pursue grant opportunities is included in the operating budget. Responding to Director Gonzalez’s inquiry earlier, staff confirmed that the District has purchased and currently operates a few EVs. Director Gonzalez suggested showcasing one of the District’s EVs at a future event. Following this discussion, President Rivera paused the meeting to provide Mr. John Earl the opportunity to address the Board. Mr. Earl brought up the District’s compliance with the Public Records Act (PRA) and submitted a formal PRA request for video recordings from the March 2026 Board meeting and audio from the February 2018 Board meeting. His comments were acknowledged and will be recorded under public participation. Mr. Ravaglioli continued the presentation on the District’s Key Assumptions and Financ- ing Plan, and responded to the Board’s questions, comments and input as follows: Director Gonzalez requested to have staff add the current year's (FY26) rate information to next year's budget plan for reference, to better explain rate changes going forward. President Rivera noted the tight timeline and potential risks associated with receiving CWA’s final rates shortly before the June 30 budget presentation. He inquired whether staff had developed assumptions based on the potential range of rate outcomes CWA may adopt and how they intend to present the information. Staff indicated it anticipates having a "floor and ceiling" in their model to prepare for last-minute adjustments. 6 On a suggestion made by Director Gonzalez to consider postponing the budget/Board meeting, staff indicated they were not prepared to take that step at this time. Staff noted that the tight timeline is not unusual, and that the District has dealt with this situation before. It was further indicated that CWA board members, who represent other agencies facing similar deadlines try to stay within the provided guidance to avoid dis- rupting their own agencies' processes. On an earlier suggestion, staff indicated that changing the District's meeting date would compress other critical post-approval time- lines. After this discussion concluded, Director Lopez inquired about the 12 open vacancies (referenced earlier in the presentation made by Ms. Lawson) and whether there is a timeline to fill them, citing a concern about intentionally keeping them open to save money. Staff clarified that the opposite is true; money from vacancies is often used to hire temporary employees to avoid overburdening existing staff. Director Gonzalez asked whether temporary employees who turn out to be effective could be hired into permanent positions, and staff responded that they could apply for vacancy but must still complete the full, standard application process. President Rivera asked if staff found themselves receiving a spike in applications just before the closing date; while they could not provide statistics at the moment, staff noted that typically applications come in as soon as the job announcements are posted or find out about them. Staff further noted that the District's practice is to use an "apply by this date for early consideration" approach but to keep the position open until a selection is made, which allows consideration of strong candidates who apply after the initial dead- line, preventing the need to restart the entire hiring effort. Director Gonzalez requested an update from last year’s FTE count of 146, with staff reporting that the current total has increased to 148. This concluded the workshop and staff’s presentation. RECESS TO CLOSED SESSION 7. CLOSED SESSION The Board recessed to closed session at 2:11 p.m. to discuss the following matter: a) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION [GOVERN- MENT CODE §54956.9 (d)(4)] INITIATION OF LITIGATION PURSUANT TO SUBDIVISION (d)(4) OF GOVERN- MENT CODE §54956.9 (ONE [1] POTENTIAL CASE) RETURN TO OPEN SESSION 8. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION 7 The Board reconvened from closed session at 2:46 p.m. and General Counsel Dan Shinoff reported that there was one (1) reportable action from closed session item, 7a. The Board considered the claim and a motion to initiate litigation was made by Director Gonzalez, seconded by Director Lopez, and carried with the following vote: Ayes: Directors Rivera, Robak, Gonzalez, and Lopez Noes: None Abstain: None Absent: Director Croucher 9. ADJOURNMENT With no further business to come before the Board, President Rivera adjourned the meeting at 2:46 p.m. President ATTEST: District Secretary STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 13, 2026 SUBMITTED BY: Zachary Thornton, Utility Maintenance Supervisor PROJECT: Various DIV. NO. ALL APPROVED BY: Jeff Marchioro, Utility Services Manager Andrew Jackson, Chief of Water Operations Jose Martinez, General Manager SUBJECT: AWARD OF TWO ON-CALL SUPPLEMENTAL WATER/SEWER/RECYCLED GENERAL INFRASTRUCTURE MAINTENANCE AND REPAIR SERVICES AGREEMENTS TO FILANC AND HPS MECHANICAL, INC. IN AN AMOUNT NOT-TO-EXCEED $1,000,000 FOR FISCAL YEAR 2027 WITH FOUR (4) ONE-YEAR OPTIONS TO RENEW AT THE DISCRETION OF THE GENERAL MANAGER. GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) award two on-call service agreements and authorize the General Manager to execute two agreements for on-call supplemental Water/Sewer/Recycled general infrastructure maintenance and repair services with Filanc and HPS Mechanical, Inc.(HPS) each in an amount not-to-exceed $1,000,000 for Fiscal Year 2027, with four (4) one-year options to renew, at the discretion of the General Manager. The total amount of the two agreements will not exceed $1,000,000 during each fiscal year. COMMITTEE ACTION: See “Attachment A.” PURPOSE: To obtain Board authorization for the General Manager to enter into two agreements for on-call supplemental Water/Sewer/Recycled general infrastructure maintenance and repair services with Filanc and HPS, AGENDA ITEM 6a with each agreement in an amount not-to-exceed $1,000,000 for Fiscal Year 2027, with four (4) one-year options to renew, at the discretion of the General Manager. The total amount of the two agreements will not exceed $1,000,000 during each fiscal year. ANALYSIS: To maintain reliable water distribution, the District often requires immediate maintenance and repair services including pipeline repairs, facility upgrades, and site maintenance (which are critical to minimizing service interruptions), and regulatory compliance. Historically, the District has successfully and efficiently managed these needs through District staff. There have been occasions when District’s resources are insufficient to manage the workload or are restricted from performing work under the California Uniform Construction Cost Accounting Commission Act (CUPCCA), which limits work performed by District staff on public works projects up to $75,000. Projects exceeding this amount, up to $220,000, must be contracted through informal bidding procedures. The District has traditionally managed these needs through multiple short-term contracts, which have proven time-intensive and may delay responses to urgent or emergency projects. To streamline operations, District staff recommend securing an on-call supplemental services agreement with two qualified contractors capable of providing a range of maintenance and repair services on an as-needed basis. This agreement will facilitate efficient response to emergency repairs and urgent system maintenance, without requiring repetitive bidding for each project. Additionally, the agreement will also streamline and improve flexibility to complete non-emergent planned work for routine corrective maintenance and in support of Capital Improvement Projects (CIP). The scope of the agreement includes, but is not limited to: •Work on water piping with the following service designations: potable water, wastewater, and recycled water. Includinginstallation, removal, and proper disposal. •Relocation of pipelines, valves, vaults, air vacs, and related appurtenances. Including removal, installation, and disposal •Installation and removal of line stops. •Relocation of storm drains and pipelines. Including removal,installation, and disposal. •Repair pipeline leaks. •Repairs of concrete and asphalt roadways, including trenching,backfilling, compacting, and temporary paving, curb and gutterrepair/replace. •Emergency pipeline and infrastructure repairs to protect public safety. For planned work, the District will identify and discuss task orders with Filanc and HPS for specific projects throughout the contract period. The contractors will then prepare a schedule, detailed scope of work, and cost estimate based on their proposed unit price rate schedule to the extent possible. Work not listed on the unit price rate schedule will be billed on a Time and Materials (T&M) basis. The District will assign task orders based on factors, such as cost, availability, task completion turnaround, and other relevant considerations. For emergency and urgent unplanned work, the first call will alternate between Filanc and HPS. The District will pay them on a time and materials basis, in accordance with prevailing wage rates for labor and the applicable equipment and materials per the rate schedule. Filanc and HPS shall provide a detailed labor and equipment report based on the rate schedule, including any markups for materials or subcontractor work. The on-call services agreement does not commit the District to any expenditure until a task order is approved to perform the work. The District does not guarantee on-call work to the contractors, nor does the District guarantee to the contractors that it will expend all the funds authorized by the agreement. On-call agreement task orders will be administered/managed and inspected by the District’s Operations Utility Maintenance section and/or Engineering Field Services section staff as appropriate, depending on the size and complexity of the individual task orders. The District’s As-Needed Construction Management and Inspection Services consultants may also be utilized to administer and inspect the task order work. In accordance with the District’s purchasing requirements, bids were solicited on December 11, 2025, via PlanetBids (the District’s online bid solicitation portal) and the District’s website. The advertisement was also placed in the Daily Transcript. Seven prospective contractors attended a mandatory pre-bid conference meeting on January 5, 2026. Bids, including unit prices for typical work anticipated for this agreement, proposed time, and material hourly, equipment, and markup rates were received through Planet Bids on Wednesday January 14, 2026, and opened with the result shown in the table below. The bid evaluation consisted of proposed unit prices and proposed time and material rates, multiplied by a weight factors, and applied to typical work anticipated for this agreement to achieve a total combined score shown in the table below. A summary of the complete evaluation is shown in Attachment B. Contractor Name Unit Price Weighted Score Time and Material Weighted Score (T&M) Total Combined Score (Unit Price + T&M) Filanc 1,092,751 42,470 1,135,221HPS Mechanical, Inc.1,123,282 42,030 1,165,312MMC, Inc.1,305,316 30,563 1,335,878Bali Construction 1,382,624 35,135 1,417,759Palm Engineering Construction 1,548,022 61,040 1,609,062TC Construction Company 1,847,662 36,940 1,884,602 Filanc and HPS completed the Company Background Questionnaire and Company Safety Questionnaire Forms as required by the bid documents, and staff did not find any significant issues. Staff completed reference checks for the selected firms, and all references were satisfactory. Filanc and HPS hold valid Class A, General Engineering, Contractor’s License in the State of California, which is valid through March 31, 2027, and September 30, 2027, respectively. Filanc held recent on-call contracts for similar work with the City of San Diego, City of Escondido, and City of Anaheim. HPS has held recent on-call plumbing contracts with Carlsbad Unified School District and SANDAG. HPS has also recently completed sewer lift station improvement work for the City of Fresno. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The agreements establish a maximum annual expenditure of $1,000,000 per fiscal year. This maximum amount provides the District with sufficient flexibility to address critical projects as they arise. Budget Fiscal Year 2027 Amount Operating Budget $500,000 CIP Budget $500,000TOTAL$1,000,000 •Approximately $500,000 is anticipated for operating repairs andmaintenance, including emergency and urgent work. The Fiscal Year 2027 Operating budget will include $500,000 allocated to supportcorrective, emergency, and urgent repairs. •During Fiscal Years 2024-2026, The District’s average annualexpenditure for urgent and emergency work, including contracted services, totaled $464,000. For Fiscal Year 2026, expenditures are $626,056 to date. •The proposed CIP funds come from the valve replacement program,with projected six-year expenditures totaling $5,975,000, or between $500,000 and $1,800,000 annually as the valve replacementsprogress in a systematic approach. Most of this work is, and willbe, performed by District staff. The contractor will be engaged inmore complex valve replacements, particularly in high-trafficareas, on large-diameter valves, and at depths exceeding six feet, at the District’s discretion. The agreements also include provisions for optional renewals of up to four additional one-year terms, pending satisfactory performance and continued funding approval. The funds for these contracts will be expended on a variety of projects, as previously noted above. These contracts are for on-call supplemental maintenance and repair services based on the District's need and schedule, and expenditures will not be made until a task order is approved by the District for the contractor’s services on a specific CIP, Operating or emergency services project, and budget availability is confirmed. Based on a review of the financial budget, the Project Manager anticipates that the budgets will be sufficient to support on-call services agreement required for the projects noted above. The Finance Department has determined that the funds to cover these contracts will be available as budgeted for these projects. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide exceptional water and wastewater service to its customers, and to manage District resources in a transparent and fiscally responsible manner” and the General Manager’s Vision, "To be a model water agency by providing stellar service, achieving measurable results, and continuously improving operational practices." LEGAL IMPACT: None. Attachments: Attachment A – Committee Action Attachment B – Combined Weighted Score Calculations Attachment C – Example Repair Photos ATTACHMENT A SUBJECT/PROJECT: AWARD OF TWO ON-CALL SUPPLEMENTAL WATER/SEWER/RECYCLED GENERAL INFRASTRUCTURE MAINTENANCE AND REPAIR SERVICES AGREEMENTS TO FILANC AND HPS MECHANICAL, INC. IN AN AMOUNT NOT-TO-EXCEED $1,000,000 FOR FISCAL YEAR 2027 WITH FOUR (4) ONE-YEAR OPTIONS TO RENEW AT THE DISCRETION OF THE GENERAL MANAGER. COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee reviewed this item at a meeting held on April 22, 2026, and the following comments were made: •Staff indicated that the need for these contracts was highlighted bypast expenditures on urgent and emergency work, which averaged$464,000 annually and reached $626,056 in FY26. These contracts provide resources when in-house staff are insufficient or limited byproject cost caps. •Staff indicated that six (6) bids were received on January 14, 2026,with Filanc and HPS Mechanical Inc., both being selected as the lowest total cost bidders. Staff conducted reference checks, which weresatisfactory, and also highlighted examples of relevant workexperience with other municipalities. •The Committee acknowledged and understood the need for the on-call contracts, recognizing that unexpected work can arise and must beaddressed promptly. •The Committee expressed appreciation for the table and scoring charts,noting that they were well prepared and presented. •The Committee asked whether the District had previously worked withFilanc and staff responded that it had not. Upon completion of the discussion, the Committee supported staff’s recommendation and presentation to the full board as a consent item. Unit Price Weighted Score Attachment B Item Wght Type of Service Unit Bid Price Total Score Unit Bid Price Total Score Unit Bid Price Total Score Unit Bid Price Total Score Unit Bid Price Total Score Unit Bid Price Total Score Unit Bid Price Total Score 1 10 1.00$ 10.00 $20,000 $200,000 $12,920 $129,200 $2,600 $26,000 $4,100 $41,000 $9,000 $90,000 $13,500 $135,000 2 7 1.00$ 7.00 $30,000 $210,000 $14,860 $104,020 $4,115 $28,805 $5,700 $39,900 $15,000 $105,000 $16,000 $112,000 3 5 1.00$ 5.00 $400 $2,000 $937 $4,685 $1,350 $6,750 $1,535 $7,675 $3,000 $15,000 $3,200 $16,000 4 5 1.00$ 5.00 $500 $2,500 $1,015 $5,075 $1,610 $8,050 $1,670 $8,350 $3,500 $17,500 $3,400 $17,000 5 10 1.00$ 10.00 $5,000 $50,000 $8,230 $82,300 $6,800 $68,000 $9,075 $90,750 $7,500 $75,000 $10,000 $100,000 6 6 1.00$ 6.00 $6,000 $36,000 $10,100 $60,600 $7,800 $46,800 $9,890 $59,340 $9,500 $57,000 $11,000 $66,000 7 2 1.00$ 2.00 $19,000 $38,000 $30,745 $61,490 $19,770 $39,540 $35,430 $70,860 $30,000 $60,000 $35,000 $70,000 8 2 1.00$ 2.00 $10,000 $20,000 $14,198 $28,396 $24,000 $48,000 $15,340 $30,680 $9,500 $19,000 $20,000 $40,000 9 2 1.00$ 2.00 $5,000 $10,000 $12,384 $24,768 $6,500 $13,000 $4,830 $9,660 $7,000 $14,000 $3,100 $6,200 10 2 1.00$ 2.00 $15,000 $30,000 $17,418 $34,836 $28,000 $56,000 $20,850 $41,700 $28,500 $57,000 $32,000 $64,000 11 3 1.00$ 3.00 $13,000 $39,000 $14,592 $43,776 $24,550 $73,650 $16,370 $49,110 $25,000 $75,000 $29,000 $87,000 12 3 1.00$ 3.00 $20,000 $60,000 $12,495 $37,485 $27,000 $81,000 $13,470 $40,410 $20,000 $60,000 $19,000 $57,000 13 5 1.00$ 5.00 $20,000 $100,000 $2,890 $14,450 $22,000 $110,000 $27,500 $137,500 $30,000 $150,000 $47,000 $235,000 14 5 1.00$ 5.00 $30,000 $150,000 $34,917 $174,585 $26,000 $130,000 $52,990 $264,950 $43,500 $217,500 $57,000 $285,000 15 5 1.00$ 5.00 $25,000 $125,000 $18,959 $94,795 $23,000 $115,000 $41,350 $206,750 $40,000 $200,000 $33,000 $165,000 16 5 1.00$ 5.00 $15,000 $75,000 $8,632 $43,160 $25,000 $125,000 $23,260 $116,300 $30,000 $150,000 $36,000 $180,000 17 1 1.00$ 1.00 $60 $60 $115 $115 $265 $265 $2,600 $2,600 $300 $300 $440 $440 18 5 1.00$ 5.00 $5,000 $25,000 $5,282 $26,410 $1,500 $7,500 $1,120 $5,600 $2,300 $11,500 $1,300 $6,500 19 5 1.00$ 5.00 $13,276 $66,378 $12,261 $61,303 $13,992 $69,961 $15,949 $79,744 $17,422 $87,111 $20,552 $102,761 20 5 1.00$ 5.00 $13,276 $66,378 $12,261 $61,303 $13,992 $69,961 $15,949 $79,744 $17,422 $87,111 $20,552 $102,761 Totals 93.00 $1,305,316 $1,092,751 $1,123,282 $1,382,624 $1,548,022 $1,847,662 Palm Engineering Construction Company, Inc. TC Construction Company, Inc. Bid #FY26-3232-1211 On-Call Supplemental Water/Sewer/Recycled/General Infrastructure Maintenance and Repair Services As described in Bid Schedule per Item # CONTROL J.R. Filanc Construction Company, Inc.HPS Mechanical, Inc.Bali Construction, Inc.MMC Inc Time and Materials and Combined Weighted Score Attachment B Description Weight Labor Weight 10 Labor/ Equipment Hours Equipment Weight 5 Foreman 8 Material Markup Weight 2 Operator 8 Laborer 8 Backhoe 8 Dump Truck 8 Contractor Foreman Rate ($/hr) Operator Rate ($/hr) Laborer Rate ($/hr) Backhoe Rate ($/hr) Dump Truck Rate ($/hr) Material Markup (%) Labor Cost (Scenario) Equipment Cost (Scenario) Total Scenario Cost T&M Weighted Score Line Bid Items Totals Weighted Score Total Combined Weighted Score Rank Lowest to Highest Bidder J.R. Filanc Construction 157 154 114 101 110 15 3,400 1,688 5,088 42,470 1,092,751 1,135,221 1 HPS Mechanical Inc 195 145 85 115 85 15 3,400 1,600 5,000 42,030 1,123,282 1,165,312 2 MMC, Inc 101 115 98 63 71 20 2,514 1,077 3,591 30,563 1,305,316 1,335,878 3 Bali Construction Inc 129 126 94 108 71 15 2,797 1,427 4,224 35,135 1,382,624 1,417,759 4 Palm Engineeering Construction CompanyInc 200 175 150 250 225 20 4,200 3,800 8,000 61,040 1,548,022 1,609,062 5 TC Construction Company Inc 150 115 94 95 110 10 2,872 1,640 4,512 36,940 1,847,662 1,884,602 6 Typical Scenario Bid #FY26-3232-1211 On-Call Supplemental Water/Sewer/Recycled/General Infrastructure Maintenance and Repair Services Examples of Contractor Repairs On-Call Supplemental Water/Sewer/Recycled/General Infrastructure Maintenance and Repair Services Agreement Attachment C Emergency 16” C900 Pipe & Road Repair Paseo Ladera Jan 2021 Emergency 6” BO repair at 980-2 PS May 2022 Emergency 12” ACP Main Repair Jamul Dr Oct 2025 Planned Repair Telegraph Canyon Road Blowoff Valve August 2025 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 13, 2026 SUBMITTED BY: Jeff Marchioro Utility Services Manager / Senior Civil Engineer PROJECTS: P2639-001103P2663-009000 DIV. NO. 5 APPROVED BY: Beth Gentry, Engineering Manager Michael Long, Chief, Engineering Jose Martinez, General Manager SUBJECT: Award of a Construction Contract to Jennette Company, Inc. for the Vista Diego Hydropneumatic Pump Station Improvements - Phase I Project GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) award a construction contract to Jennette Company, Inc. (Jennette) and authorize the General Manager to execute an agreement with Jennette for the Vista Diego Hydropneumatic (HPS) Pump Station Improvements - Phase I in an amount not-to-exceed $389,900 (see Exhibit A for Project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to enter into a construction contract with Jennette for the Vista Diego HPS Pump Station Improvement Phase I Project in an amount not-to-exceed $389,900. AGENDA ITEM 6b 2 ANALYSIS: The District’s existing Vista Diego Hydropneumatic Pump Station (Vista Diego HPS) was originally built in 1966 with two domestic pumps and a 10,000-gallon hydropneumatic tank. The original pump station was retrofitted with a fire pump in the late 1980's, at which time all electrical gear was replaced and a generator was installed. The 1966 era steel hydropneumatic tank requires replacement due to corrosion. The existing Vista Diego HPS serves the 1530 Pressure Zone comprised of 6-inch and 8-inch asbestos concrete (ACP) Class 150 piping and approximately forty (40) small (3/4” to 1”) residential meters and four (4) fire hydrants. In preparation for the Fiscal Year 2026 budget cycle, the Vista Diego HPS replacement project was estimated at $6.4M compared to the $4.2M FY 2025 budget. Staff completed an alternatives analysis and removed the existing 1980’s fire pump and electrical gear upgrades from the project. The fire needs for the District will be assessed in the Water Facilities Master Plan Update. The reduced scope project includes a temporary domestic pump skid to be located in a shared easement with SDG&E under the overhead dry utilities. SDG&E provided concurrence with project. CIP P2639 is currently budgeted at $2.5M. The temporary domestic pump skid will facilitate demolition of the 1966 era 10,000-gallon hydropneumatic tank. After District staff gain experience with the temporary skid, and after demolition of the existing 10,000-gallon hydropneumatic tank, the permanent domestic pump skid(s) will be installed within the existing pump station yard. On September 30, 2025, the District awarded a purchase order to the Barrett Engineered Pumps (Barrett) for the pre-purchase of the domestic pump skid. The skid was delivered on January 16, 2026. Barrett’s purchase order does not include installation of the pump skid at the Project site. Like the domestic skid, several other items with long lead times and/or complex ordering processes were pre-purchased to facilitate the bidding, pump skid installation, and streamline of the construction project. A purchase order was awarded to MCR Technologies Inc. for an equipment shelter with air conditioning to house the pump skid on January 26, 2026, with delivery anticipated in April 2026. Purchase orders were recently issued for several smaller items including a pair of bladder tanks, magnetic flow meter, existing site Programmable Logic Controller (PLC) modules, certified used circuit breakers to fit the existing site electrical enclosure, a transformer, and slanting disk check valve. The Purchase Orders were issued under General Manager authority tied to California 3 Uniform Public Construction Cost Accounting Act (CUPCCAA) for public works projects. District staff prepared a bid package for installation of the pre-purchased items in-house. The District’s as-needed electrical engineer consultant (Engineering Partners, Inc.) provided electrical design. On March 3, 2026, the Project was posted for bid using PlanetBids, an online bid solicitation website. The Project was also advertised in the Daily Transcript on March 9, 2026. PlanetBids provided electronic distribution of the Bid Documents, including specifications, plans, and addendum. A Pre-Bid Meeting, with the pre-purchased skid staged in the employee parking lot, was held on March 11, 2026, which was attended by twelve (12) general contractors and a subcontractor. Three addendums were sent out to all bidders and plan houses to address questions and clarifications to the contract documents during the bidding period. Bids were publicly opened on March 25, 2026, with the following results: CONTRACTOR TOTAL BASE BID AMOUNT 1 Jennette Company, Inc. San Diego, CA $389,900.00 2 M Rae Engineering, Inc. Descanso, CA $439,800.00 3 RJ Nichols Construction, Inc. Lakeside, CA $475,439.00 4 TC Construction Company, Inc. Santee, CA $476,500.00 5 MMC, Inc. La Palma, CA $508,000.00 6 HPS Mechanical, Inc. Bakersfield, CA $553,000.00 7 Vicon Enterprise, Inc. Anaheim, CA $657,000.00 8 Houalla Enterprises, Ltd. Newport Beach, CA $660,602.00 9 Palm Engineering Construction Company, Inc. San Diego, CA $672,000.00 10 Arsenal Well Drilling, Inc. Visalia, CA $791,597.17 The Engineer’s Estimate is $475,000. 4 A review of the bids was performed by District staff for conformance with the contract requirements and determined that Jennette was the lowest responsive and responsible bidder. Jennette holds a Class A, General Engineering, Contractor’s License in the State of California, which meets the contract document requirements, and is valid through September 30, 2027. The reference checks indicated a mixture of very good and excellent performance records on similar projects. An internet background search of the company was performed and revealed no outstanding issues with this company. Jennette is currently working on the District’s 711 Pump Station Improvements Phase I project. Jennette successfully completed the 1200 Pressure Zone Improvements Phase II project in 2022. Jennette also completed the installation of a static mixer at the District’s 520 Reservoir site in 2022. Jennette staff, when previously employed by NEWest Construction Co., Inc., also completed several District projects including the Calavo Sewer Lift Station in 2008. Staff verified that the bid bond provided by Jennette is valid. Staff will also verify that Jennette’s Performance Bond and Labor and Materials Bond are valid prior to execution of the contract. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The total budget for CIP P2639, as approved in the FY 2026 budget, is $2,500,000. Accounting for future phases, the total expenditures, plus outstanding commitments and forecast including this contract, are estimated at $2,455,406. See Attachment B for budget detail. The total budget for CIP P2663, as approved in the FY 2025 budget, is $3,200,000. The total expenditures, plus outstanding commitments and forecast including this contract, are estimated at $1,889,374. See Attachment C for budget detail. Based on a review of the financial budgets, the Project Manager anticipates that the budgets for both CIPs P2639 and P2663 are sufficient to support the Project. The Finance Department has determined that, under the current rate model, 100% of the funding will be available from the Replacement Fund for CIP P2639 and CIP P2663. GRANTS/LOANS: Engineering staff researched and explored grants and loans and found none available for this Project. 5 STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide exceptional water and wastewater service to its customers and to manage District resources in a transparent and fiscally responsible manner,” and the General Manager’s Vision, "To be a model water agency by providing stellar service, achieving measurable results, and continuously improving operational practices." LEGAL IMPACT: None. JM/BG:jf Attachments: Attachment A – Committee Action Attachment B – Budget Detail CIP P2639 Attachment C – Budget Detail CIP P2663 Exhibit A – Location Map ATTACHMENT A SUBJECT/PROJECT: P2639-001103 P2663-009000 Award of a Construction Contract to Jennette Company, Inc. for the Vista Diego Hydropneumatic Pump Station Improvements - Phase I Project COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held April 22, 2026, and the following comments were made: •Staff indicated the multi-phase project involves replacing the original 1966 steel hydropneumatic tank due to corrosion. The original project scope was reduced from $6.4 million to $2.5 million to allow for the reassessment of the fire suppression strategy for this station and other similar stations to be assessed through the Water Facilities Master Plan Update. •Staff indicated that the District pre-purchased long-lead-time items to streamline construction. This phase involves installing a temporary domestic pump skid. Future phases will include demolishing the old 10,000-gallon tank. •Jennette was the lowest of ten bidders, with a bid significantly under the engineer's estimate of $475,000. Staff indicated that Jennette has successfully completed previous projects for the District. •The Committee asked about the estimated cost of the upcoming fire system and whether the same contractor would be used. Staff explained that this would be addressed in a future phase once the fire suppression strategy and project criteria are finalized through the in-progress Water Facilities Master Plan Update. •The Committee inquired about the existing large hydropneumatic tank scheduled for replacement and where the new tank would be installed. Staff indicated that the temporary domestic pump skid, installed together with smaller bladder tanks, will eliminate the need for the existing large hydropneumatic tank. The domestic pump skid will have smaller pumps with variable frequency drives compared to the existing constant speed domestic pumps to reduce the required hydropneumatic tank volume such that only small bladder tanks will be required. Permanent domestic skids will be installed within the existing pump station site in future phases. •In response to the Committee’s question regarding how many homes the pump station serves, staff responded that it serves approximately 40 homes. •The Committee further inquired whether there had been complaints regarding water pressure or if staff were being proactive with the installation of the pump skid. Staff stated that there had been no recent complaints regarding water pressure and that they were taking a proactive approach, as the tank was originally built in the 1960s. Upon completion of the discussion, the Committee supported staff’s recommendation and presentation to the full board as a consent item. ATTACHMENT B – Budget Detail CIP P2639 SUBJECT/PROJECT: P2639-001103 P2663-009000 Award of a Construction Contract to Jennette Company, Inc. for the Vista Diego Hydropneumatic Pump Station Improvements - Phase I Project Date Updated: 3/29/2026 Budget 2,500,000 Planning Consultant Contracts 56,236 - 56,236 CHAMBERS GROUP INC 38,133 - 38,133 HELIX ENVIRONMENTAL Agency Fees 50 - 50 COUNTY OF SAN DIEGO Standard Salaries 77,348 - 77,348 Total Planning 171,767 - 171,767 Design Consultant Contracts 105,458 - 105,458 MURRAYSMITH INC 21,902 - 21,902 NINYO & MOORE GEOTECHNICAL 20,933 41,612 62,544 NV5 INC 6,566 - 6,566 STC TRAFFIC INC 12,275 3,205 15,480 WOOD RODGERS INC 78,374 21,040 99,414 ENGINEERING PARTNERS INC Service Contracts 5,066 - 5,066 HUNSAKER & ASSOCIATES Standard Salaries 341,379 - 341,379 - 100,000 100,000 Phase II Total Design 591,952 65,857 657,808 Construction Consultant Contracts 9,900 - 9,900 ALYSON CONSULTING - - - MURRAYSMITH INC - 11,800 11,800 ENGINEERING PARTNERS INC INFRASTRUCTURE EQUIPMENT &5,877 - 5,877 GRAYBAR ELECTRIC CO INC 9,100 - 9,100 CHULA VISTA ELECTRIC CO 28,429 - 28,429 SOUTHCOAST HEATING & AIR 85,861 660 86,521 BARRETT ENGINEERED PUMPS - 7,091 7,091 CS-ASSOCIATED MUNICIPAL SALES, LLC 4,183 84 4,267 CB PACIFIC INC. 4,945 (0) 4,945 EMERSON LLLP - 50,810 50,810 MCR TECHNOLOGIES INC Service Contracts - 20,000 20,000 TECHKNOWSION INC Standard Salaries 2,192 75,000 77,192 - 324,100 324,100 Jennette Company Inc - Vista Diego HPS - 35,800 35,800 Construction Management - 50,000 50,000 Contingency - 800,000 800,000 Phase II Total Construction 150,487 1,375,344 1,525,831 Grand Total 914,205 1,541,201 2,455,406 Vendor/Comments Otay Water District p2639-Vista Diego Hydro Pump Station Repl Expenditures Forecast Projected Final Cost ATTACHMENT C – Budget Detail CIP P2663 SUBJECT/PROJECT: P2639-001103 P2663-009000 Award of a Construction Contract to Jennette Company, Inc. for the Vista Diego Hydropneumatic Pump Station Improvements - Phase I Project 3/29/2026 Budget 3,200,000 Consultant Contracts 30,245 - 30,245 WOOD RODGERS INC2,640 - 2,640 NV5 INC 2,512 - 2,512 ON-SITE TECHNICAL SV 6,452 13,949 20,400 VALLEY CM (711 PS)Service Contracts 11,155 - 11,155 APPLUS RTD USA INC 64,895 - 64,895 HMT LLC 56 - 56 NATL BOARD OF B & PV INS4,900 - 4,900 UP N DOWN SCAFFOLD CO INC 7,518 - 7,518 BOB'S CRANE SERVICE 814 - 814 PENHALL COMPANY465 - 465 RICK POST WELD & WET TAPPING 266 - 266 SAN DIEGO POWDER COATING 3,250 379,500 382,750 JENNETTE COMPANY (711 PS)Supplier Contracts 885 - 885 SQ *FRANK CONCRETE INC 8,400 - 8,400 FREEDOM AUTOMATION INC 4,231 - 4,231 BARRETT ENGINEERED PUMPS 20,064 - 20,064 DAWSON COMPANY975 - 975 ACRO INSTRUMENT CO 1,409 - 1,409 HOFFMEYER CO 2,007 - 2,007 MCMASTER-CARR SUPPLY CO1,306 - 1,306 MINSHEW BROTHERS STEEL 286,088 - 286,088 MODERN CUSTOM FABRICATION INC 528 - 528 SOUTHLAND PIPE CORP755 - 755 ABC IMAGING 47 - 47 DAILY JOURNAL CORPORATION 3,300 - 3,300 IN *ANGLER PLUMBING1,480 - 1,480 JAWCO CERTIFIED WELDING INC. INFRASTRUCTURE EQUIPMENT 715 - 715 AMAZON.COM INC 1,402 - 1,402 CED INDUSTRIAL & LIGHT150 - 150 CORE & MAIN LP 20,969 32,306 53,275 FERGUSON ENTERPRISES INC #1083 596 - 596 GRAINGER INC136 - 136 HILTI INC 156 - 156 HUB 54 SAN DIEGO 3,982 - 3,982 MAGNETROL67 - 67 PB/DIXIELINE #15 1,678 - 1,678 RCP BLOCK & BRICK INC 555 - 555 RELIABLE PIPE SUPPLY CO.2,110 - 2,110 SUPERIOR READY MIX LP 6,151 - 6,151 MICRO MOTION INC 12,783 - 12,783 AMETEK MAGNETROL USA LLC4,800 - 4,800 BLUEWATER RUBBER & GASKET CO 9 - 9 HOME DEPOT CREDIT SERVICES 1,243 - 1,243 LAKESIDE EQUIPMENT SALES &1,972 - 1,972 LINDE GAS & EQUIP 11,258 - 11,258 PACIFIC PIPELINE SUPPLY INC 50 - 50 PETTY CASH CUSTODIAN447 - 447 ABABA BOLT 755 - 755 ABC IMAGING Equipment Rental 563 - 563 AMERICAN FENCE CORPRegulatory Agency Fees 50 - 50 COUNTY OF SAN DIEGO Standard Salaries 613,579 20,000 633,579 65,800 65,800 Jennette Company Inc (Vista Diego HPS) 5,000 5,000 Construction Management 20,000 20,000 Contingency 200,000 200,000 Vista Diego Phase II Grand Total 1,152,820 736,554 1,889,374 1 152 097 Vendor/Comments Otay Water Districtp2663-Potable Water Pressure Vessel Program Expenditures Forecast Projected Final Cost OTAY WATER DISTRICTVista Diego Hydropneumatic Pump Station ReplacementLocation Map EXHIBIT A CIP P2663 & P2639 F C: \ O n e D r i v e \ O t a y W a t e r D i s t r i c t \ E N G C I P - D o c u m e n t s \ P 2 6 3 9 V i s t a D i e g o H P S R e p l \ G r a p h i c s \ E x h i b i t s - F i g u r e s \ E x h i b i t A - S t a f f R e p o r t !\ VICINITY MAP PROJECT SITE NTSDIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ?ò Aä%&s ?p ?Ë F 0 200100 Feet SR-94 CAM P O R D VISTA DIE G O R D PROJECT SITE STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 13, 2026 SUBMITTED BY: Jeff Marchioro, Utility Services Manager PROJECT: P2700-001103 DIV. NO. 1 APPROVED BY: Andrew Jackson, Chief of Water Operations Jose Martinez, General Manager SUBJECT: APPROVAL OF CHANGE ORDER NO. 1 IN AN AMOUNT NOT-TO-EXCEED $96,031 TO EXISTING PURCHASE ORDER #20250128 WITH BRAX COMPANY, INC. TO REPLACE RATHER THAN REBUILD PUMP #1 AT THE 980-1 PUMP STATION, FOR A REVISED TOTAL PURCHASE ORDER AMOUNT OF $166,021 GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) authorize the General Manager to increase existing purchase order #20250128 with Brax Company, Inc. (Brax) to replace rather than rebuild Pump #1 at the 980-1 Pump Station in an amount not-to-exceed $96,031, for a revised total purchase order amount of $166,021 (see Exhibit A for project location). COMMITTEE ACTION: Please see “Attachment A.” PURPOSE: To obtain Board authorization for the General Manager to increase Brax’s existing purchase order to replace rather than rebuild Pump #1 at the 980-1 Pump Station in an amount not-to-exceed $96,031. ANALYSIS: The 980-1 Pump Station was originally built in 1986 and is located at 2406 Otay Lakes Road in Chula Vista. The pump station was the main source of water distribution to pump from the 711 Pressure Zone to the AGENDA ITEM 6c 2 980 Pressure Zone before the 980-2 Pump station was built. The pump station is critical for water distribution redundancy when the 980-2 Pump Station needs to be taken out of service for preventive and corrective maintenance. The 980-1 Pump Station consists of three electric motor driven pumps rated at 4,000 gallons per minute each. The 980-1 Pump Station’s original Floway brand pumps, which were manufactured in 1986, were replaced with Peerless brand pumps in 1995. The Board authorized a purchase order to replace Pump #1 4,160-volt motor in November 2023. At the time that the motor was replaced in 2023, the associated pump was not repaired or replaced. On March 24, 2025, District staff posted a solicitation on PlanetBids for optional quotes to rebuild and replace 980-1 Pump Station, Pump #1. On April 9, 2025, four quotes were received with the following results. No questions were received via PlanetBids while the solicitation was posted on PlanetBids. Brax Company Powers Bros. Machine Legend Pump and Well Service Inc. TC Construction Company, Inc. Rebuild $69,990 $71,422 $75,350 $92,500 Replace no bid $149,945 $166,200 $172,000 On April 23, 2025, a purchase order was issued to Brax in the amount of $69,990 to rebuild Pump #1. Brax subsequently removed and transported Pump #1 to Brax’s shop and discovered that the pump bowls required replacement due to corrosion. On February 11, 2026, Brax provided a change order quote in the amount of $26,722.75 to add new pump bowls to the initial rebuild cost estimate submitted through PlanetBids. When asked, Brax also estimated their expenses to date at $17,818 and provided a quote to replace rather than rebuild as summarized in the table below. Brax Company Powers Bros. Machine Legend Pump and Well Service Inc TC Construction Company, Inc. Date quoted 2/21/2026 4/9/2025 4/9/2025 4/9/2025 Replace $166,021 $149,945 $166,200 $172,000 Brax sunk cost Included $17,818 $17,818 $17,818 Total $166,021 $167,764 $184,018 $189,818 3 Considering Brax’s sunk costs, Brax offered the lowest cost for the District to proceed with replacement. Staff recommend proceeding with replacement because the rebuilding option would result in a partially replaced pump with 31-year-old shaft, column, and discharge head. The shaft, column, and/or discharge head will need to be replaced at some point in the future. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The total budget for CIP P2700, as approved in the FY 2026 budget, is $1,250,000. Based on a review of the financial budgets, the Project Manager anticipates that the budget for CIP P2700 is sufficient to support the Project. The Finance Department has determined that, under the current rate model, 100% of the funding will be available from the Replacement Fund. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide exceptional water and wastewater service to its customers, and to manage District resources in a transparent and fiscally responsible manner” and the General Manager’s Vision, "To be a model water agency by providing stellar service, achieving measurable results, and continuously improving operational practices." LEGAL IMPACT: None. Attachments: Attachment A – Committee Action Exhibit A – Location Map ATTACHMENT A SUBJECT/PROJECT: P2700-001103 APPROVAL OF CHANGE ORDER NO. 1 IN AN AMOUNT NOT-TO-EXCEED $96,031 TO EXISTING PURCHASE ORDER #20250128 WITH BRAX COMPANY, INC. TO REPLACE RATHER THAN REBUILD PUMP #1 AT THE 980-1 PUMP STATION, FOR A REVISED TOTAL PURCHASE ORDER AMOUNT OF $166,021 COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on April 22, 2026, and the following comments were made: Staff recommend a full replacement for $96,000 (including sunk costs) over the rebuild option, as rebuilding would result in a pump with mixed new and 31-year-old components, posing future risks. In response to the Committee’s question about whether Brax was a local company based in San Diego and whether their past work for the District had been satisfactory, staff stated that they are a local company with a shop located in Valley Center and that their work for the District had been satisfactory. The Committee stated that they agreed with the replacement, noting that mixing new parts with old parts is not ideal for the long term, as it results in different life cycles for the various components. The Committee also stated that they appreciated the comparison staff provided regarding the costs of rebuilding versus replacing. Upon completion of the discussion, the Committee supported staff’s recommendation and presentation to the full board as a consent item. ÃÅ125 CA - 1 2 5 N CA- 125 S L a n e A v e Otay L a k e s R d F e n t o n St H u n t e P k w y Boswell Rd Proctor Valley Rd L a Costa Ave N G r e e n s v iew Dr Augu s t aPl MacKenzie C r e ekRd E astlakePkwy Corte Vi e j o RiverRo c k R d Ha r o l d P l Saddle b ac k Y o s e m i t e D r WatervilleLake R d Eas t r i d g e L oop T o r r e y Pin e s Rd Mo u n t M i g u e l R d Falcon Valley D r S h o w r o o m Pl Ea gle Val ley D r Fairw a y O aks D r Chim ney Flats Ln Park M e a d o w s R d Oak Knoll Ct Mill e r D r HuntePkwy §¨¦805 ÃÅ125 ÃÅ94 ÃÅ905 VICINITY MAP PROJECT SITE DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ÃÅ54 !\ 0 800400 Feet CIP P2700 F EXHIBIT A 980-1 PUMP STATIONLOCATION MAP OTAY WATER DISTRICT C: \ U s e r s \ o r e a d y \ O n e D r i v e - O t a y W a t e r D i s t r i c t \ W o r k i n g P r o j e c t F i l e s \ M i s c \ E x h i b i t A - P 2 7 0 0 9 8 0 - 1 L o c a t i o n M a p . a p r x F NTS 980-1 PUMP STATION PROJECT SITEÃÅ125 !\ STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 13, 2026 SUBMITTED BY: Jon Ravaglioli Finance Manager PROJECT: DIV. NO.All APPROVED BY: Joseph R. Beachem, Chief Financial Officer Jose Martinez, General Manager SUBJECT: Authorize the General Manager to Enter into a Five-Year Sewer Billing Services Agreement with the City of Chula Vista and to Execute, At His Discretion, One Additional Five-Year Extension GENERAL MANAGER’S RECOMMENDATION: That the Board authorize the General Manager to enter into a five- year Sewer Billing Services Agreement with the City of Chula Vista and to execute, at his discretion, one additional five-year extension. COMMITTEE ACTION: See Attachment A. PURPOSE: To authorize the General Manager to enter into a new five-year Sewer Billing Services Agreement with the City of Chula Vista, effective July 1, 2026, and to execute, at his discretion, one additional five- year extension. ANALYSIS: Since May of 1981, the District has agreed to collect sewer service charges from all of its water customers who receive sewer service from the City of Chula Vista (City). Over time, several agreements between the City and the District have been in place for sewer billing services. AGENDA ITEM 6d Beginning with the December of 1995 agreement, the City and the District added numerous obligations that emphasized cooperation and planning between the two agencies. The agreement had a 20-year term and expired on June 30, 2016. The City elected to allow the agreement to expire, as many of the previously outstanding issues, such as growth and development, had been resolved. Upon the 2016 expiration, a new agreement was put in place for five years, with five additional one-year extension options, through June 30, 2026. Under the 1995 agreement, the billing rate was $0.50 per bill. In November of 2004, the City and the District agreed that due to cost increases in providing this service, the billing rate would increase to $1.03. The billing rate was further increased from $1.03 to $1.05 in November of 2015, reflecting the increase in the December 2014 San Diego Consumer Price Index (CPI). As part of the 2016 agreement, the billing rate has been adjusted annually on July 1 based on the preceding December’s San Diego CPI. The most recent rate billed for FY 2026 was $1.45 per bill. The proposed agreement defines the sewer billing services to be provided and establishes a term of five years, with one optional five-year extension. This agreement also proposes that the billing rate of $1.45 be automatically adjusted each July 1 based on changes in the prior December’s San Diego CPI. The most recent CPI change, from December 2024 to December 2025, was 3.788%, resulting in an adjusted billing rate of $1.50 per account effective July 1, 2026. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The annual revenue for sewer billing services will be approximately $585,000, increasing annually according to the terms of the agreement. STRATEGIC GOAL: The District ensures its continued financial health through long-term financial planning. LEGAL IMPACT: None. Attachments: Attachment A - Committee Action Attachment B – Presentation Slide Attachment C – Proposed Agreement with the City of Chula Vista ATTACHMENT A SUBJECT/PROJECT: Authorize the General Manager to Enter into a Five-Year Sewer Billing Services Agreement with the City of Chula Vista and to Execute, At His Discretion, One Additional Five-Year Extension COMMITTEE ACTION: The Finance & Administration Committee reviewed this item at a meeting held on April 23, 2026, and the following comments were made: •Staff noted that the new agreement will be effective July 1, 2026, for a five-year term with an optional five-year extension, which is more administratively efficient than the previous structure of five one-year extensions. •Staff indicated that the draft agreement has not been attached due to outstanding items still being finalized with the City. Staff aim to present the agreement at the May 13 board meeting, however, if those items are not resolved in time, it may be deferred to the June Board meeting. •Staff indicated that the agreement start date in the “Purpose” paragraph should indicate July 1, 2026, rather than 2027, and will update the staff report accordingly. •In response to the Committee’s question regarding how many City ratepayers are served by the District, staff responded that the number is approximately 30,000. Staff indicated that the District collects sewer service charges from all of its water customers who receive sewer service from the City. •In response to the Committee’s inquiry regarding billing, staff clarified that the Sweetwater Authority does not directly bill these customers and that the City handles the billing internally. •The Committee requested that for future presentations, staff include the number of ratepayers affected and a map of the service area. Upon completion of the discussion, the Committee supported staff’s recommendation and presentation to the full board as a consent item. City of Chula Vista Sewer Billing Agreement ▪Agreement for Otay to bill City of Chula Vista sewer customers on Otay water bills ▪Billings remitted to City of Chula Vista every two months ▪Otay charges a fixed rate per customer ▪Most recent agreement ran from July 1, 2016 –June 30, 2021; five optional one-year renewals were then exercised ▪Rate increased annually based on San Diego CPI ▪Last renewal expires June 30, 2026 ▪New agreement ▪Term: five years with one five-year extension option ▪Beginning rate on July 1, 2026: $1.50 (previous rate $1.45 + CPI 3.788% = $1.50) 1 Attachment B {AS7 Law San Diego/004344/000002/K/S0617041.DOCX} CITY OF CHULA VISTA CONSULTANT SERVICES AGREEMENT WITH OTAY WATER DISTRICT TO PROVIDE WATER CONSUMPTION DATA AND SEWER BILLING SERVICES This Agreement is entered into effective as of May 19, 2026 (“Effective Date”) by and between the City of Chula Vista, a chartered municipal corporation (“City”) and OTAY WATER DISTRICT, a public entity established pursuant California Water Code Section 71000 et seq. (“Consultant”) (collectively, the “Parties” and, individually, a “Party”) with reference to the following facts: RECITALS WHEREAS, the City is responsible for administering its wastewater service program in a manner that ensures accurate calculation of sewer service charges, proper revenue collection, and reliable customer service for parcels connected to the City’s wastewater system (“Customer”); and WHEREAS, the rates for the City’s sewer service fees are structured, in part, on the basis of a customer’s metered water use and certain assumptions regarding the volume of water returned to the sewer system; and WHEREAS, Consultant provides water service to parcels located within Consultant’s jurisdictional boundaries; and WHEREAS, the City desires services related to (1) the timely and accurate reporting of water consumption data and (2) the calculation of customer’s sewer service fees based on a formula provided by the City, for all parcels served by Consultant within the jurisdictional boundaries of the City; and WHEREAS, the City desires that Consultant (1) provide sewer billing services for all parcels served by Consultant within the jurisdictional boundaries of the City and (2) remit those sewer service fees billed to the City on behalf of its customes; and WHEREAS, Consultant was selected based on its unique positioning and capabilities as the water service provider for City’s customers within Consultant’s jurisditional boundaries, and its exclusive access to the metered water consumption data of those customers that is desired to calculate and administer sewer service charges, and its existing role in performing sewer billing, reporting, and related customer service functions on behalf of the City; and WHEREAS, Consultant was awarded this contract on a sole‑source basis pursuant to the authority granted under Chula Vista Municipal Code Section 2.56.070(B)(4); and WHEREAS, Consultant warrants and represents that it is experienced and staffed in a manner such that it can deliver the services required of Consultant to City in accordance with the time frames and the terms and conditions of this Agreement. [End of Recitals. Next Page Starts Obligatory Provisions.] Attachment C {AS7 Law San Diego/004344/000002/K/S0617041.DOCX} OBLIGATORY PROVISIONS NOW, THEREFORE, in consideration of the above recitals, the covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which the Parties hereby acknowledge, City and Consultant hereby agree as follows: 1.SERVICES 1.1 Required Services. Consultant agrees to perform the services, and deliver to City the “Deliverables” (if any) described in the attached Exhibit A, incorporated into the Agreement by this reference, within the time frames set forth therein, time being of the essence for this Agreement. The services and/or Deliverables described in Exhibit A shall be referred to herein as the “Required Services.” 1.2 Reductions in Scope of Work. City may independently, or upon request from Consultant, from time to time, reduce the Required Services to be performed by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet and confer in good faith for the purpose of negotiating a corresponding reduction in the compensation associated with the reduction. 1.3 Additional Services. Subject to compliance with the City’s Charter, codes, policies, procedures and ordinances governing procurement and purchasing authority, City may request Consultant provide additional services related to the Required Services (“Additional Services”). If so, City and Consultant agree to meet and confer in good faith for the purpose of negotiating an amendment to Exhibit A, to add the Additional Services. Unless otherwise agreed, compensation for the Additional Services shall be charged and paid consistent with the rates and terms already provided therein. Once added to Exhibit A, “Additional Services” shall also become “Required Services” for purposes of this Agreement. 1.4 Standard of Care. Consultant expressly warrants and agrees that any and all Required Services hereunder shall be performed in accordance with the highest standard of care exercised by members of the profession currently practicing under similar conditions and in similar jurisdictions. The Parties agree that the standard of care will be based on the general accounting principles used for a special district in the State of California. 1.5 No Waiver of Standard of Care. Where approval by City is required, it is understood to be conceptual approval only and does not relieve the Consultant of responsibility for complying with all laws, codes, industry standards, and liability for damages caused by negligent acts, errors, omissions, noncompliance with industry standards, or the willful misconduct of the Consultant or its subcontractors. 1.6 Security for Performance. As noted in Exhibit A, Section 5, City does not require additional security for performance of its duties under this Agreement. {AS7 Law San Diego/004344/000002/K/S0617041.DOCX} 1.7 Compliance with Laws. In its performance of the Required Services, Consultant shall comply with any and all applicable federal, state and local laws, including the Chula Vista Municipal Code. 1.8 Business License. City acknowledges that Consultant, a public entity in California, is not required to acquire a business license from City. 1.9 Subcontractors. City acknowledges and agrees that Consultant has the discretion to select and oversee the work performed by subcontractors. Consultant agrees that subcontractors will comply with all applicable laws, regulations, ordinances, and policies, whether federal, state, or local. Consultant shall ensure that each and every subcontractor carries out the Consultant’s responsibilities as set forth in this Agreement. 1.10 Term. This Agreement shall commence on the earlier to occur of the Effective Date or Consultant’s commencement of the Required Services hereunder, and shall terminate, subject to Sections 6.1 and 6.2 of this Agreement, when the Parties have complied with all their obligations hereunder. 2.COMPENSATION 2.1 General. For satisfactory performance of the Required Services, City agrees to compensate Consultant in the amount(s) and on the terms set forth in Exhibit A, Section 4. Standard terms for billing and payment are set forth in this Section 2. 2.2 Detailed Invoicing. Invoicing requirements specified in Exhibit A, section 2. 2.3 Payment to Consultant. Consultant must deduct from each remittance to City of billed Sewer service charge fees its administrative fee that is charged per account (the “Service Fee”). The Service Fee will be calculated for the accounts where Consultant provides water consumption data and billing services within the jurisdictional boundaries of the City. The Service Fee compensates Consultant for the costs to provide such data and perform sewer billing services for the City. 2.4 Exclusions. City shall not be responsible for payment to Consultant for any fees or costs in excess of any agreed upon budget, rate or other maximum amount(s) provided for in Exhibit A. City shall also not be responsible for any cost: (a) incurred prior to the Effective Date; or (b) arising out of or related to the errors, omissions, negligence or acts of willful misconduct of Consultant, its agents, employees, or subcontractors. 2.5 Payment Not Final Approval. Consultant understands and agrees that City’s acceptance of payment by Consultant does not constitute a final decision by City that such payment represents the total amount due to City for a month, and does not constitute a waiver of any violation by Consultant of the terms of this Agreement. If City determines that City is entitled to receive compensation in addition to that already paid, City will notify Consultant in {AS7 Law San Diego/004344/000002/K/S0617041.DOCX} writing and Consultant must promptly, but no later than 30 days from the written notice, remit all additional amounts owed pursuant to Section 2.2 above. 2.6 Annual Service Fee Adjustment. The Service fees under this agreement may be subject to an annual adjustment based on the Consumer Price Index (CPI). Effective July 1 of each calendar year, collection service fees may increase by a rate equal to the change, year over year, in the CPI as published by the U.S. Bureau of Labor Statistics for Price Index for All Urban Consumers (CPI-U) San Diego. The applicable CPI shall be based on the 12-month percent index change published in December of each calendar year, preceding the adjustment. 3.INSURANCE 3.1 Required Insurance. Consultant must procure and maintain, during the period of performance of Required Services under this Agreement, and for twelve months after completion of Required Services, the policies of insurance described on the attached Exhibit B, incorporated into the Agreement by this reference (the “Required Insurance”). 3.2 Self-Insurance. Consultant represents, and City acknowledges, that Consultant is a member of the Association of California Water Agencies Joint Powers Insurance Authority (ACWA JPIA), a joint powers authority between special districts that self-insures with an applicable memorandum of coverage that is attached as Exhibit E. Otay Water District represents that it has no other separate policy of insurance. City acknowledges that Consultant’s evidence of self-insurance fulfills City’s coverage requirements. 3.3 Subcontractors. Consultant must include all sub-consultants/sub-contractors as insureds under its self-insurance representation and/or furnish separate certificates and endorsements demonstrating separate coverage for those not under its policies. Any separate coverage for sub-consultants must also comply with the requirements of Exhibit B to this Agreement. 4.INDEMNIFICATION 4.1. General. To the maximum extent allowed by law, each Party shall timely and fully protect, defend, reimburse, indemnify and hold the other harmless, including any elected and appointed officers, agents, employees and volunteers (collectively, “Indemnified Parties”), from and against any and all claims, demands, causes of action, costs, expenses, (including reasonable attorneys’ fees and court costs), liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any alleged acts, omissions, negligence, or willful misconduct of either Party, their officials, officers, employees, agents, and contractors, arising out of or in connection with the performance of the Required Services, the results of such performance, or this Agreement. This indemnity provision does not include any claims, damages, liability, costs and expenses arising from the sole negligence or willful misconduct of the Indemnified Parties. Also covered is liability arising from, connected with, caused by or claimed to be caused by the active or passive negligent acts or omissions of the Indemnified Parties which may be in combination with the active or passive negligent acts or omissions of the Consultant, its employees, agents or officers, or any third party. {AS7 Law San Diego/004344/000002/K/S0617041.DOCX} D4.2 Costs of Defense and Award. Included in the Parties’ obligations under this Section 4 are the Parties’ obligation to defend, at their own cost, expense and risk, and with counsel approved in writing by City, any and all suits, actions or other legal proceedings that may be brought or instituted against one or more of the Indemnified Parties. Subject to the limitations in this Section 4, Consultant shall pay and satisfy any judgment, award or decree that may be rendered against one or more of the Indemnified Parties for any and all related legal expenses and costs incurred by any of them. 4.3. Consultant’s Obligations Not Limited or Modified. The Parties’ obligations under this Section 4 shall not be limited to insurance proceeds, if any, received by the Indemnified Parties, or by any prior or subsequent declaration by the Parties. Furthermore, the Parties’ obligations under this Section 4 shall in no way limit, modify or excuse any of the Parties’ other obligations or duties under this Agreement. 4.4 Survival. Consultant’s obligations under this Section 4 shall survive the termination of this Agreement. 5.CONFLICTS OF INTEREST 5.1 Form 700 Filing. The California Political Reform Act and the Chula Vista Conflict of Interest Code require certain government officials and consultants performing work for government agencies to publicly disclose certain of their personal assets and income using a Statement of Economic Interests form (Form 700). In order to assure compliance with these requirements, Consultant shall comply with the disclosure requirements—if any—identified in the attached Exhibit C, incorporated into the Agreement by this reference. 5.2 Disclosures; Prohibited Interests. Independent of whether Consultant is required to file a Form 700, Consultant warrants and represents that it has disclosed to City any economic interests held by Consultant, or its employees or subcontractors who will be performing the Required Services, in any real property or project which is the subject of this Agreement. Consultant warrants and represents that it has not employed or retained any company or person, other than a bona fide employee or approved subcontractor working solely for Consultant, to solicit or secure this Agreement. Consultant warrants and represents that it has not paid or agreed to pay any company or person, other than a bona fide employee or approved subcontractor working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Consultant further warrants and represents that to its knowledge no officer or employee of City, has any interest, whether contractual, non-contractual, financial or otherwise, in this transaction, the proceeds hereof, or in the business of Consultant or Consultant’s subcontractors. City and Consultant further agrees to notify one another in the event any such interest is discovered whether or not such interest is prohibited by law or this Agreement. In the event that either the City or Consultant become aware of any City employee having any interest, whether contractual, non-contractual, financial, or otherwise in this transaction they will immediately advise one another that they have become aware of such interest. The parties further agree in the event that a conflict of interest is identified, the contract may be subject to recission. {AS7 Law San Diego/004344/000002/K/S0617041.DOCX} 5.3 Levine Act. California Government Code section 84308, commonly known as the Levine Act, prohibits public agency officers from participating in any action related to a contract if such officer receives political contributions totaling more than $500 within the previous twelve months, and for twelve months following the date a final decision concerning the contract has been made, from the person or company awarded the contract. The Levine Act also requires disclosure of such contribution by a party to be awarded a specific contract. In order to assure compliance with these requirements, Consultant shall comply with the disclosure requirements identified—if any–in the attached Exhibit D, incorporated into the Agreement by this reference. 6.REMEDIES 6.1 Termination for Cause. If for any reason whatsoever Consultant shall fail to perform the Required Services under this Agreement, in a proper or timely manner, or if Consultant shall violate any of the other covenants, agreements or conditions of this Agreement (each a “Default”), in addition to any and all other rights and remedies City may have under this Agreement, at law or in equity, City shall have the right to terminate this Agreement by giving ninety (90) days written notice to Consultant. Such notice shall identify the Default and the Agreement termination date. If Consultant notifies City of its intent to cure such Default prior to City’s specified termination date, and City agrees that the specified Default is capable of being cured, City may grant Consultant up to ten (10) additional days after the designated termination date to effectuate such cure. In the event of a termination under this Section 6.1, Consultant shall immediately provide City any and all “Work Product” (defined in Section 7 below) prepared by Consultant as part of the Required Services. Consultant may be entitled to compensation for work satisfactorily performed prior to Consultant’s receipt of the Default notice; provided, however, in no event shall such compensation exceed the amount that would have been payable under this Agreement for such work, and any such compensation shall be reduced by any costs incurred or projected to be incurred by City as a result of the Default. 6.2 Termination or Suspension for Convenience. Either Party may suspend or terminate this Agreement, or any portion of the Required Services, at any time and for any reason, with or without cause, by giving specific written notice to the other Party of such termination or suspension at least 90 days prior to the effective date or termination. If notice is given by City, upon receipt of such notice, Consultant shall immediately cease all work under the Agreement and promptly deliver all “Work Product” (defined in Section 7 below) to City. Such Work Product shall be City's sole and exclusive property as provided in Section 7. Consultant shall be entitled to receive just and equitable compensation for this Work Product in an amount equal to the amount due and payable under this Agreement for work satisfactorily performed as of the date of the termination/suspension notice plus any additional remaining Required Services requested or approved by City in advance that would maximize City’s value under the Agreement. 6.3 Waiver of Claims. In the event City terminates the Agreement in accordance with the terms of this Section, Consultant hereby expressly waives any and all claims for damages or compensation as a result of such termination except as expressly provided in this Section 6. {AS7 Law San Diego/004344/000002/K/S0617041.DOCX} 6.4 Administrative Claims Requirements and Procedures For any dispute arising out of this Agreement against City, Consultant must first file a claim in writing with City, and City will review it in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may be amended, the provisions of which, including such policies and procedures used by City in the implementation of same, are incorporated herein by this reference. 6.5 Governing Law/Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in San Diego County, State of California. Consultant hereby waives any right to remove any action from San Diego County as may otherwise be permitted by California Code of Civil Procedure section 394. 6.6 Service of Process. Consultant agrees that it is subject to personal jurisdiction in California. If Consultant is a foreign corporation, limited liability company, or partnership that is not registered with the California Secretary of State, Consultant irrevocably consents to service of process on Consultant by first class mail directed to the individual and address listed under “For Legal Notice,” in section 1.B. of Exhibit A to this Agreement, and that such service shall be effective five days after mailing. 7.OWNERSHIP AND USE OF WORK PRODUCT 7.1 All reports, studies, information, data, and complete customer records, produced in whole or in part under this Agreement in connection with the performance of the Required Services (collectively “Work Product”) shall be the sole and exclusive property of City. No such Work Product shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express, prior written consent of City. City shall have unrestricted authority to publish, disclose, distribute, and otherwise use, copyright or patent, in whole or in part, any such Work Product, without requiring any permission of Consultant, except as may be limited by the provisions of the Public Records Act or expressly prohibited by other applicable laws. With respect to computer files containing data generated as Work Product, Consultant shall make available to City, upon reasonable written request by City, the necessary functional computer software and hardware for purposes of accessing, compiling, transferring and printing computer files. 8.GENERAL PROVISIONS 8.1 Amendment. This Agreement may be amended, but only in writing signed by both Parties. 8.2 Assignment. City would not have entered into this Agreement but for Consultant’s unique qualifications and traits. Consultant shall not assign any of its rights or responsibilities under this Agreement, nor any part hereof, without City’s prior written consent, which City may grant, condition or deny in its sole discretion. {AS7 Law San Diego/004344/000002/K/S0617041.DOCX} 8.3 Authority. The person(s) executing this Agreement for Consultant warrants and represents that they have the authority to execute same on behalf of Consultant and to bind Consultant to its obligations hereunder without any further action or direction from Consultant or any board, principle or officer thereof. 8.4 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which shall constitute one Agreement after each Party has signed such a counterpart. 8.5 Entire Agreement. This Agreement together with all exhibits attached hereto and other agreements expressly referred to herein, constitutes the entire Agreement between the Parties with respect to the subject matter contained herein. All exhibits referenced herein shall be attached hereto and are incorporated herein by reference. All prior or contemporaneous agreements, understandings, representations, warranties and statements, oral or written, are superseded. 8.6 Record Retention. During the course of the Agreement and for three (3) years following completion of the Required Services, Consultant agrees to maintain, intact and readily accessible, all data, documents, reports, records, contracts, and supporting materials relating to the performance of the Agreement, including accounting for costs and expenses charged to City, including such records in the possession of sub-contractors/sub-consultants (“Record Data”). 8.7 Further Assurances. The Parties agree to perform such further acts and to execute and deliver such additional documents and instruments as may be reasonably required in order to carry out the provisions of this Agreement and the intentions of the Parties. 8.8 Independent Contractor. Consultant is and shall at all times remain as to City a wholly independent contractor. Neither City nor any of its officers, employees, agents or volunteers shall have control over the conduct of Consultant or any of Consultant’s officers, employees, or agents (“Consultant Related Individuals”), except as set forth in this Agreement. No Consultant Related Individuals shall be deemed employees of City, and none of them shall be entitled to any benefits to which City employees are entitled, including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Furthermore, City will not withhold state or federal income tax, social security tax or any other payroll tax with respect to any Consultant Related Individuals; instead, Consultant shall be solely responsible for the payment of same and shall hold the City harmless with respect to same. Consultant shall not at any time or in any manner represent that it or any of its Consultant Related Individuals are employees or agents of City. Consultant shall not incur or have the power to incur any debt, obligation or liability whatsoever against City, or bind City in any manner. 8.9 Notices. All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any Party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such Party, postage prepaid, registered or {AS7 Law San Diego/004344/000002/K/S0617041.DOCX} certified, with return receipt requested, at the addresses identified in this Agreement at the places of business for each of the designated Parties as indicated in Exhibit A, or otherwise provided in writing. 8.10 Electronic Signatures. Each Party agrees that the electronic signatures, whether digital or encrypted, of the Parties included in this Agreement are intended to authenticate this writing and to have the same force and effect as manual signatures. Electronic Signature means any electronic sound, symbol, or process attached to or logically associated with a record and executed and adopted by a Party with the intent to sign such record, including facsimile or email electronic signatures, pursuant to the California Uniform Electronic Transactions Act (Cal. Civ. Code §§ 1633.1 to 1633.17) as amended from time to time. 8.11 Customer Data Privacy. The parties acknowledge that Consultant maintains confidential and sensitive customer information, including water usage data, billing and payment records, account information, and that the secure collection, transmission, storage, and use of such information, in compliance with all applicable laws and industry-standard security practices, are critical obligations under this agreement. 8.12 Audit rights. The City shall have the right, upon reasonable notice, to obtain, audit, and inspect all billing records, account information, payment data, and related documents maintained by Consultant in connection with the services performed under this agreement. Consultant shall cooperate fully with any audit and shall promptly correct any deficiencies identified by the City.” 8.13 Severability. If any provision of this Agreement is held to be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby, and the parties agree to replace such invalid, illegal, or unenforceable provision with a valid, legal, and enforceable provision that comes as close as possible to the intent of the original provision. 8.14 Provisions Surviving Termination. The Parties acknowledge and agree that except where expressly noted otherwise, no provision of the agreement shall be extended beyond the terms of the agreement. (End of page. Next page is signature page.) SIGNATURE PAGE CONSULTANT SERVICES AGREEMENT {AS7 Law San Diego/004344/000002/K/S0617041.DOCX} IN WITNESS WHEREOF, by executing this Agreement where indicated below, City and Consultant agree that they have read and understood all terms and conditions of the Agreement, that they fully agree and consent to bound by same, and that they are freely entering into this Agreement as of the Effective Date. OTAY WATER DISTRICT CITY OF CHULA VISTA BY:________________________________ BY: ________________________________ Name_____________ Choose a signatory. Title _______________ Choose the signatory’s title. ATTEST1 By Daniel R. Shinoff Approved as to form Signature _______________________ BY: _____________________________ Kerry K. Bigelow, MMC City Clerk APPROVED AS TO FORM BY: _______________________________ Marco A. Verdugo City Attorney 1 Attestation signature only required if the Mayor signs the Agreement. If Mayor is not signing agreement, delete entire attestation signature block. {AS7 Law San Diego/004344/000002/K/S0617041.DOCX} EXHIBIT A SCOPE OF WORK AND PAYMENT TERMS 1.Contact People for Contract Administration and Legal Notice A.City Contract Administration: Jimmy Vasquez 276 Fourth Avenue Chula Vista, CA 91910 (619) 585-5688 jvasquez@chulavistaca.gov For Legal Notice Copy to: City of Chula Vista City Attorney 276 Fourth Avenue, Chula Vista, CA 91910 619-691-5037 CityAttorney@chulavistaca.gov B.Consultant Contract Administration: OTAY WATER DISTRICT Andrea Carey. 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978-2004. Andrea.Carey@otaywater.gov 619-670-2246 For Legal Notice Copy to: 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978-2004. Jon Ravaglioli JRavaglioli@otaywater.gov 619-670-2246 2.Required Services A.General Description: Consultant will provide water consumption data reporting, prepare the calculation of customer’s sewer service charges, and provide sewer billing services and related customer service functions. B.Detailed Description: All services shall be carried out for all parcels served by Consultant within the jurisdictional boundaries of the City, but only for properties specified by the City. Calculation of customer’s sewer service charges shall be based on a formula provided by the City. The following services shall be provided by Consultant to the City: {AS7 Law San Diego/004344/000002/K/S0617041.DOCX} 1.Sewer Billing Services: Consultant shall perform sewer billing services for all customers it serves within the City’s jurisdiction, and the Parties agree to the following responsibilities regarding the performance, administration, and oversight of such services. a)The City will provide to Consultant, no later than June 1st of each year, the rates and formulas to be used by Consultant to calculate the fees to be billed to the City’s Sewer Customers. b)Consultant shall calculate sewer charges using the fee rates and formulas provided by the City (“Sewer Fees”). Consultant shall make no warranty regarding the accuracy or completeness of the data or formulas supplied by the City. c)On a monthly basis, Consultant will perform the services of billing and collection of Sewer fees for the City and shall include the Sewer charges on each customer’s monthly water bill. d)Consultant shall apply all customer payments to water utility charges before applying any portion of such payments to Sewer Fees. e)Consultant shall remit to the City the sewer fees billed to the customers served by Consultant within the jurisdictional boundaries of the City. Consultant must remit to City, on a bi-monthly basis, the Sewer charges billed to its customers from the preceding two-month period. Consultant’s remittance to the City is due on the last Monday of the month that follows the two months of billing (e.g., Sewer Fees billed in July and August will be due by the last Monday in September). f)Consultant reserves the right to refer all City sewer customer to the City for questions related to their sewer service, but may provide basic customer service support to City sewer customers for inquiries related to sewer fee billing, including explanations of charges, account status, and payment processing. g)Consultant shall maintain accurate records of all Sewer service charge billings, adjustments, payments, and delinquencies. h)The City shall be solely responsible for any risk of loss arising from uncollectible accounts, including any write off balances due to uncollectable accounts or bankruptcies, up to the total amount of Sewer Fees billed. Consultant shall not be responsible for uncollected Sewer Fees when performing its services in accordance with this Agreement. {AS7 Law San Diego/004344/000002/K/S0617041.DOCX} i)The City shall be responsible for notifying Consultant of any new customers or any changes to existing customer profiles, including sewer Strength classifications for commercial accounts. j)The City acknowledges that the Water Consumption Data is confidential. The City shall use such information solely for purposes related to sewer service programs or as otherwise required by law. The City shall not disclose or use such information for any other purpose. 2.Data and reporting: Consultant shall provide periodic reports to the City as follows: a)Remittance Detail Reports -Consultant shall submit a summary report for each bi-monthly Sewer Fee remittance, covering Consultant’s monthly billing period (a sample of the report is attached as Exhibit 1). -Consultant shall submit a monthly detailed sewer billing report reflecting its billing activities for the previous month, using the mutually agreed standard file format of (Excel), (a sample of the report is attached as Exhibit 2). This report shall contain the fields of the Consultant’s customer number, customer name, service address, account type (fee code), water consumption or winter average, commercial classification, meter size, sewer charge and storm drain fee amounts and any accounting structure mutually agreed. b)Annual Water Consumption Data Report: -Consultant shall provide water consumption data for all parcels it serves within the City’s jurisdictional boundaries (“Water Consumption Data File”). -The Water Consumption Data File shall be submitted on an annual basis in the mutually agreed upon standard file format of (Excel). (sample of the file is attached as Exhibit 3). -The Water Consumption Data File shall include consumption data for the period of the preceding November through April and shall identify the lowest two consecutive months of consumption within that period. {AS7 Law San Diego/004344/000002/K/S0617041.DOCX} -Consultant shall provide complete and accurate water consumption data within thirty (30) days following receipt of the last water meter reading for the month of April, using reasonable, industry-standard methods and process. -The City acknowledges that the Water Consumption Data is confidential. The City shall use such information solely for purposes related to sewer service programs or as otherwise required by law. The City shall not disclose or use such information for any other purpose. c)Annual Residential Account List -Upon written request from the City, Consultant shall provide an annual list of all active accounts within the City’s jurisdictional boundary. -The report shall be submitted in the mutually agreed upon standard file format of (Excel), a sample of the report is attached as Exhibit 4. 3.Term: In accordance with Section 1.10 of this Agreement, the term of this Agreement shall begin July 1, 2026 and end on June 30, 2031 for completion of all Required Services. 4.Compensation: A.Form of Compensation ☒Consultant must remit all monies collected minus a deduction per-account charge (“Service Fee”) from each remittance of sewer fees it makes to the City on a bi-monthly basis. The Service Fee is based on the number of accounts for which Consultant provides billing services to the City in a bi-monthly period. The Service Fee represents Consultant’s costs to provide water consumption data and perform billing services for sewer fees for the City. The initial Service Fee shall be $1.50 per account, per month. Beginning July 1, 2027, and on each July 1st thereafter, the Service Fee shall be adjusted from a existing figure of $1.50 per account using the published Bureau of Labor Statistic’s Consumer Price Index for San Diego Area - All Items (CPI-U) from the preceding December. Any change shall be memorialized by Consultant sending a notice to the City which will include an updated Service Fee rate per account. Said notices shall be incorporated herein by reference and become part of this Agreement. B.Reimbursement of Costs ☒None, the compensation includes all costs Notwithstanding the foregoing, the maximum amount to be paid to the Consultant for services performed through June 30, 2036 shall not exceed $10,500,000. {AS7 Law San Diego/004344/000002/K/S0617041.DOCX} 5.Special Provisions: ☐Permitted Sub-Consultants: None ☐Security for Performance: None ☒Notwithstanding the completion date set forth in Section 3 above, City has option to extend this Agreement for one additional five (5) year term (or July 1, 2031, through June 30, 2036), and Consultant must agree to the extension The City Manager or Director of Finance/Treasurer shall be authorized to exercise the extensions on behalf of the City. The General Manager for Otay Water District shall be authorized to exercise the extensions on behalf of the District. If the Parties exercise an option to extend, each extension shall be on the same terms and conditions contained herein, provided that the amounts specified in Section 4 above may be increased by up to specified annual CPI-U adjustment for each extension. The City shall give written notice to Consultant of the City’s election to exercise the extension via the Notice of Exercise of Option to Extend document at least 120 days before the scheduled termination date of the current Agreement. Consultant shall give written notice to City of acceptance of City’s Notice of Exercise of Option to Extend this Agreement at least 90 days before the scheduled termination date of the current Agreement. ☐Other: Describe Special Provisions (Delete Line If Not Applicable) ☐None {AS7 Law San Diego/004344/000002/K/S0617041.DOCX} EXHIBIT B INSURANCE REQUIREMENTS Consultant shall adhere to all terms and conditions of Section 3 of the Agreement. City acknowledges that Consultant’s evidence of self-insurance satisfies the General Liability requirement here. Type of Insurance Minimum Amount Form ☒ General Liability: Including products and completed operations, personal and advertising injury $2,000,000 per occurrence for bodily injury, personal injury (including death), and property damage. If Commercial General Liability insurance with a general aggregate limit is used, either the general aggregate limit must apply separately to this Agreement or the general aggregate limit must be twice the required occurrence limit Additional Insured Endorsement or Blanket AI Endorsement for City* Waiver of Recovery Endorsement Insurance Services Office Form CG 00 01 *Must be primary and must not exclude Products/Completed Operations ☐ Automobile Liability $1,000,000 per accident for bodily injury, including death, and property damage Insurance Services Office Form CA 00 01 Code 1-Any Auto Code 8-Hired Code 9-Non Owned ☐ Workers’ Compensation Employer’s Liability $1,000,000 each accident $1,000,000 disease policy limit {AS7 Law San Diego/004344/000002/K/S0617041.DOCX} $1,000,000 disease each employee Waiver of Recovery Endorsement ☐ Professional Liability (Errors & Omissions) $1,000,000 each occurrence $2,000,000 aggregate Other Negotiated Insurance Terms: Any subcontractor must comply with General Liability insurance requirement as described in section 3.3. {AS7 Law San Diego/004344/000002/K/S0617041.DOCX} EXHIBIT C CONSULTANT CONFLICT OF INTEREST DESIGNATION The Political Reform Act2 and the Chula Vista Conflict of Interest Code3 (“Code”) require designated state and local government officials, including some consultants, to make certain public disclosures using a Statement of Economic Interests form (Form 700). Once filed, a Form 700 is a public document, accessible to any member of the public. In addition, consultants designated to file the Form 700 are also required to comply with certain ethics training requirements.4 ☒A. Consultant will not exert influence over the official or contracting decisions of City and is therefore EXCLUDED5 from disclosure. ☐B. Consultant WILL exert influence over the official or contracting decisions of City and their disclosure designation is as follows: APPLICABLE DESIGNATIONS FOR INDIVIDUAL(S) ASSIGNED TO PROVIDE SERVICES (Category descriptions available at www.chulavistaca.gov/departments/city- clerk/conflict-of-interest-code.) Name Email Address Applicable Designation Enter Name of Each Individual Who Will Be Providing Service Under the Contract – If individuals have different disclosure requirements, duplicate this row and complete separately for each individual Enter email address(es) ☐A. Full Disclosure ☐B. Limited Disclosure (select one or more of the categories under which the consultant shall file): ☐1. ☐ 2. ☐ 3. ☐ 4. ☐ 5. ☐ 6.☐ 7. Justification: ☐C. Excluded from Disclosure 1. Required Filers Each individual who will be performing services for the City pursuant to the Agreement and who meetsthe definition of “Consultant,” pursuant to FPPC Regulation 18700.3, must file a Form 700. 2. Required Filing Deadlines Each initial Form 700 required under this Agreement shall be filed with the Office of the City Clerkvia the City's online filing system, NetFile, within 30 days of the approval of the Agreement. Additional 2 Cal. Gov. Code §§81000 et seq.; FPPC Regs. 18700.3 and 18704. 3 Chula Vista Municipal Code §§2.02.010-2.02.040. 4 Cal. Gov. Code §§53234, et seq. 5 CA FPPC Adv. A-15-147 (Chadwick) (2015); Davis v. Fresno Unified School District (2015) 237 Cal.App.4th 261; FPPC Reg. 18700.3 (Consultant defined as an “individual” who participates in making a governmental decision; “individual” does not include corporation or limited liability company). {AS7 Law San Diego/004344/000002/K/S0617041.DOCX} Form 700 filings will be required annually on April 1 during the term of the Agreement, and within 30 days of the termination of the Agreement. 3. Filing DesignationThe City Department Director will designate each individual who will be providing services to the City pursuant to the Agreement as full disclosure, limited disclosure, or excluded from disclosure, based on an analysis of the services the Consultant will provide. Notwithstanding this designation or anythingin the Agreement, the Consultant is ultimately responsible for complying with FPPC regulations and filing requirements. If you have any questions regarding filing requirements, please do not hesitate tocontact the City Clerk at (619)691-5041, or the FPPC at 1-866-ASK-FPPC, or (866) 275-3772 *2. Pursuant to the duly adopted City of Chula Vista Conflict of Interest Code, this document shall serve as the written determination of the consultant’s requirement to comply with the disclosure requirements set forth in the Code. Completed by: Jimmy Vasquez {AS7 Law San Diego/004344/000002/K/S0617041.DOCX} EXHIBIT D CONSULTANT LEVINE ACT DISCLOSURE California Government Code section 84308, commonly referred to as the Levine Act, prohibits any City of Chula Vista Officer6 (“Officer”) from taking part in decisions related to a contract if the Officer received a political contribution totaling more than $500 within the previous twelve months, and for twelve months following the date a final decision concerning the contract has been made, from the person or company awarded the contract. The Levine Act also requires disclosure of such contribution by a party to be awarded a specific contract. The Levine Act does not apply to competitively bid, labor, or personal employment contracts; contracts valued at under $50,000; contracts where no party receives financial compensation; or contracts between two or more agencies. ☒A. The Levine Act (Govt. Code §84308) DOES NOT apply to this Agreement. ☐B. The Levine Act (Govt. Code §84308) does apply to this Agreement and the required disclosure is as follows: Current Officers can be located on the City of Chula Vista’s websites below: •Mayor & Council - https://www.chulavistaca.gov/departments/mayor-council •City Attorney - https://www.chulavistaca.gov/departments/city-attorney/about-us •Planning Commissioners – www.chulavistaca.gov/pc •Candidate for Elected Office – www.chulavistaca.gov/elections 1. Have you or your company, or any agent on behalf of you or your company, made political contributions totaling more than $500 to any Officer in the 12 months preceding the date you submitted your proposal, the date you completed this form, or the anticipated date of any Council action related to this Agreement? YES: ☐ If yes, which Officer(s): Click or tap here to enter text. NO: ☐ 2. Do you or your company, or any agent on behalf of you or your company, anticipate or plan to make political contributions totaling more than $500 to any Officer in the 12 months following the finalization of this Agreement or any Council action related to this Agreement? YES: ☐ If yes, which Officer(s): Click or tap here to enter text. NO: ☐ Answering yes to either question above may not preclude the City of Chula Vista from entering into or taking any subsequent action related to the Agreement. However, it may preclude the identified Officer(s) from participating in any actions related to the Agreement. 6 “Officer” means any elected or appointed officer of an agency, any alternate to an elected or appointed officer of an agency, and any candidate for elective office in an agency. GC § 84308 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 13, 2026 SUBMITTED BY: Jon Ravaglioli, Finance Manager PROJECT: DIV. NO. All APPROVED BY: Joseph R. Beachem, Chief Financial Officer Jose Martinez, General Manager SUBJECT: Annual Review of the Investment Policy (Policy No. 27) of the District’s Code of Ordinances and the Re-delegation of Authority for All Investment Related Activities to the Chief Financial Officer General Manager’s Recommendation That the Board receives the District’s Investment Policy (Policy No. 27) of the District’s Code of Ordinances for review and re-delegate authority for all investment related activities to the ChiefFinancial Officer, in accordance with Government Code Section 53607. Committee Action See Attachment A. Purpose Government Code Section 53646 recommends that the District’s Investment Policy be tendered to the Board on an annual basis for review. In addition, Government Code Section 53607 requires that for the Board’s delegation of investment responsibilities to the Chief Financial Officer to remain effective, the governing board must re- delegate authority over investment activities on an annual basis. Analysis The primary goals of the Investment Policy are to assure compliance with the California Government Code, Sections 53600 et seq. The primary objectives, in priority order, of investment activities are: AGENDA ITEM 6e 1. Protect the principal of the funds. 2. Remain sufficiently liquid to enable the District to meetall operating requirements which might be reasonablyanticipated. 3. The District’s return is a market rate of return that is commensurate with the conservative investments approach tomeet the first two objectives of safety and liquidity. The government code restricts local agency investment options to a conservative list of investments, including Federal Treasuries, Federal Agencies, Callable Federal Agencies, the State Pool, the County Pool, and high-grade corporate debt. Each year, staff reviews legislative updates to ensure our Investment Policy reflects the most recent and relevant updates approved by the California State Legislature. During this year’s policy review, there were no relevant legislative changes that affect our Investment Policy. On an annual basis, staff submits the Investment Policy to our list of Broker/Dealers for their professional review and to ensure they acknowledge and understand the District’s Investment Policy. This year, District Brokers/Dealers did not recommend any changes be made to our Investment Policy. As part of the annual financial audit, each year the District’s external auditors apply agreed-upon procedures to investment transactions for the year. These procedures include sampling investments to determine that they are compliant with the Investment Policy and are properly recorded in the financial statements. Roughly every three years, staff submit the District’s Investment Policy to the California Municipal Treasurers Association (CMTA) as part of their Investment Policy Certification Program. Through this program, a committee reviews submitted policies for adherence to the State of California Government Code and evaluates whether the policies meet program requirements across 18 different topic areas identified as best practices for investment policies. The District’s policy was submitted in March 2026 and earned the ‘Certified’ distinction. Because of the District’s adherence to a conservative range of authorized investments, we have been able to maintain a healthy and diversified portfolio that meets our overall investment objectives and supports our long-term financial plans. The current policy is consistent with the current law and the overall objectives of the policy are being met; therefore, there are no recommended changes to the District’s Investment Policy at this time. Fiscal Impact Joe Beachem, Chief Financial Officer None. Strategic Goal Demonstrate financial health through formalized policies, prudent investing, and efficient operations. Legal Impact None. Attachments: A) Committee ActionB) Policy No. 27 C) Presentation Slide ATTACHMENT A SUBJECT/PROJECT: Annual Review of the Investment Policy (Policy No. 27) of the District’s Code of Ordinances and the Re-delegation of Authority for All Investment Related Activities to the Chief Financial Officer Committee Action: The Finance & Administration Committee reviewed this item at a meeting held on April 23, 2026, and the following comments were made: •Staff presented the 2026 Investment Policy for annual review, asrequired by government code. The policy's primary objectives are safety of principal, liquidity, and achieving a market rate ofreturn. •Staff shared that all three of the District's brokers reviewed thepolicy and had no recommended updates, however, the authority for investment activity must be re-delegated to the Chief FinancialOfficer. •In response to the Committee’s question regarding the policy’s certification, staff indicated that the policy is submitted toCMTA approximately every 3 years to ensure adherence. Upon completion of the discussion, the Committee supported staff’s recommendation and presentation to the full board as a consent item. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 09/15/93 05/05/21 Page 1 of 17 1.0 POLICY It is the policy of the Otay Water District to invest public funds in a manner which will provide maximum security with the best interest return, while meeting the daily cash flow demands of the entity and conforming to all state statues governing the investment of public funds. 2.0 SCOPE This investment policy applies to all financial assets of the Otay Water District. The District pools all cash for investment purposes. These funds are accounted for in the District’s audited Comprehensive Annual Financial Report (CAFR) and include: 2.1) General Fund 2.2) Capital Project Funds 2.2.1) Designated Expansion Fund 2.2.2) Restricted Expansion Fund 2.2.3) Designated Betterment Fund 2.2.4) Restricted Betterment Fund 2.2.5) Designated Replacement Fund 2.2.6) Restricted New Water Supply Fund 2.3) Other Post Employment Fund (OPEB) 2.4) Debt Reserve Fund Exceptions to the pooling of funds do exist for tax-exempt debt proceeds, debt reserves and deferred compensation funds. Funds received from the sale of general obligation bonds, certificates of participation or other tax-exempt financing vehicles are segregated from pooled investments and the investment of such funds are guided by the legal documents that govern the terms of such debt issuances. 3.0 PRUDENCE Investments should be made with judgment and care, under current prevailing circumstances, which persons of prudence, discretion and intelligence, exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. Attachment B OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 09/15/93 05/05/21 Page 2 of 17 The standard of prudence to be used by investment officials shall be the “Prudent Person” and/or "Prudent Investor" standard (California Government Code 53600.3) and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. 4.0 OBJECTIVE As specified in the California Government Code 53600.5, when investing, reinvesting, purchasing, acquiring, exchanging, selling and managing public funds, the primary objectives, in priority order, of the investment activities shall be: 4.1) Safety: Safety of principal is the foremost objective of the investment program. Investments of the Otay Water District shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the District will diversify its investments by investing funds among a variety of securities offering independent returns and financial institutions. 4.2) Liquidity: The Otay Water District’s investment portfolio will remain sufficiently liquid to enable the District to meet all operating requirements which might be reasonably anticipated. 4.3) Return on Investment: The Otay Water District’s investment portfolio shall be designed with the objective of attaining a benchmark rate of return throughout budgetary and economic cycles, commensurate with the District’s investment risk constraints and the cash flow characteristics of the portfolio. 5.0 DELEGATION OF AUTHORITY Authority to manage the Otay Water District’s investment program is derived from the California Government Code, Sections 53600 through 53692. Management responsibility for the investment program is hereby OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 09/15/93 05/05/21 Page 3 of 17 delegated to the Chief Financial Officer (CFO), who shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials and their procedures in the absence of the CFO. The CFO shall establish written investment policy procedures for the operation of the investment program consistent with this policy. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the CFO. 6.0 ETHICS AND CONFLICTS OF INTEREST Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the General Manager any material financial interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the District. 7.0 AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS The Chief Financial Officer shall maintain a list of District selected financial institutions and security broker/dealers authorized and approved to provide investment services in the State of California. Investment services include the buying or selling of permissible investments such as treasuries, government agencies, etc. for delivery to the custodian bank. These may include “primary” dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15C3- 1 (Uniform Net Capital Rule). No public deposit shall be made except in a qualified public depository as established by state laws. All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must supply the District with the following, as appropriate: OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 09/15/93 05/05/21 Page 4 of 17 •Audited Financial Statements. •Proof of Financial Industry Regulatory Authority (FINRA) certification. •Proof of state registration. •Completed broker/dealer questionnaire. •Certification of having read the District’s Investment Policy. •Evidence of adequate insurance coverage. An annual review of the financial condition and registrations of qualified bidders will be conducted by the CFO. A current audited financial statement is required to be on file for each financial institution and broker/dealer through which the District invests. 8.0 AUTHORIZED AND SUITABLE INVESTMENTS From the governing body perspective, special care must be taken to ensure that the list of instruments includes only those allowed by law and those that local investment managers are trained and competent to handle. The District is governed by the California Government Code, Sections 53600 through 53692, to invest in the following types of securities, as further limited herein: 8.01) United States Treasury Bills, Bonds, Notes or those instruments for which the full faith and credit of the United States are pledged for payment of principal and interest. There is no percentage limitation of the portfolio which can be invested in this category, although a five-year maturity limitation is applicable. 8.02) Local Agency Investment Fund (LAIF), which is a State of California managed investment pool, may be used up to the maximum permitted by State Law (currently $75 million). The District may also invest bond proceeds in LAIF with the same but independent maximum limitation. 8.03) Bonds, debentures, notes and other evidence of indebtedness issued by any of the following government agency issuers: OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 09/15/93 05/05/21 Page 5 of 17 •Federal Home Loan Bank (FHLB) •Federal Home Loan Mortgage Corporation (FHLMC or "Freddie Mac") •Federal National Mortgage Association (FNMA or "Fannie Mae") •Government National Mortgage Association (GNMA or “Ginnie Mae”) •Federal Farm Credit Bank (FFCB) •Federal Agricultural Mortgage Corporation (FAMCA or “Farmer Mac”) There is no percentage limitation of the portfolio which can be invested in this category, although a five-year maturity from the settlement date limitation is applicable. Government agencies whose implied guarantee has been reduced or eliminated shall require an “A” rating or higher by a nationally recognized statistical rating organization. 8.04) Interest-bearing demand deposit accounts must be made only in Federal Deposit Insurance Corporation (FDIC) insured accounts. For deposits in excess of the insured maximum of $250,000, approved collateral shall be required in accordance with California Government Code, Section 53652. Certificates of Deposit (CD) will be made only to the FDIC-insured limit of $250,000. Investments in CD’s are limited to 15 percent of the District’s portfolio. 8.05) Commercial paper, which is short-term, unsecured promissory notes of corporate and public entities. Purchases of eligible commercial paper may not exceed 2 percent of the outstanding paper of an issuing corporation, and maximum investment maturity will be restricted to 270 days. Investment is further limited as described in California Government Code, Section 53601(h). Purchases of commercial paper may not exceed 10 percent of the District’s portfolio. 8.06) Medium-term notes defined as all corporate debt securities with a maximum remaining maturity of five years from the settlement date or less, and that meet the further requirements of California Government Code, Section 53601(k). Investments in medium-term notes are limited to 10 percent of the OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 09/15/93 05/05/21 Page 6 of 17 District’s portfolio and no more than 2 percent of the outstanding medium-term notes of any single issuer. 8.07) Money market mutual funds that invest only in Treasury securities and repurchase agreements collateralized with Treasury securities, and that meet the further requirements of California Government Code, Section 53601(l). Investments in money market mutual funds are limited to 10 percent of the District's portfolio. 8.08) The San Diego County Treasurer’s Pooled Money Fund, which is a County managed investment pool, may be used by the Otay Water District to invest excess funds. There is no percentage limitation of the portfolio which can be invested in this category. 8.09) Under the provisions of California Government Code 53601.6, the Otay Water District shall not invest any funds covered by this Investment Policy in inverse floaters, range notes, interest-only strips derived from mortgage pools, or any investment that may result in a zero-interest accrual if held to maturity. Also, the borrowing of funds for investment purposes, known as leveraging, is prohibited. 9.0 INVESTMENT POOLS/MUTUAL FUNDS A thorough investigation of the pool/fund is required prior to investing, and on a continual basis. There shall be a questionnaire developed which will answer the following general questions: •A description of eligible investment securities, and a written statement of investment policy and objectives. •A description of interest calculations and how it is distributed, and how gains and losses are treated. •A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited. •A description of who may invest in the program, how often, and what size deposits and withdrawals are allowed. •A schedule for receiving statements and portfolio listings. •Are reserves, retained earnings, etc., utilized by the pool/fund? OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 09/15/93 05/05/21 Page 7 of 17 •A fee schedule, and when and how is it assessed. •Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds? 10.0 COLLATERALIZATION Collateralization will be required on certificates of deposit exceeding the $250,000 FDIC insured maximum. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be 102% of market value of principal and accrued interest. Collateral will always be held by an independent third party with whom the entity has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the entity and retained. The right of collateral substitution is granted. 11.0 SAFEKEEPING AND CUSTODY All security transactions entered into by the Otay Water District shall be conducted on a delivery-versus-payment (DVP) basis. Securities will be held by a third-party custodian designated by the District and evidenced by safekeeping receipts. 12.0 DIVERSIFICATION The Otay Water District will diversify its investments by security type and institution, with limitations on the total amounts invested in each security type as detailed in Paragraph 8.0, above, so as to reduce overall portfolio risks while attaining benchmark average rate of return. With the exception of U.S. Treasury securities, government agencies, and authorized pools, no more than 50% of the District’s total investment portfolio will be invested with a single financial institution. 13.0 MAXIMUM MATURITIES To the extent possible, the Otay Water District will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the District will not directly invest in securities maturing more than five years from the settlement date of the purchase. However, for time deposits with banks or savings and OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 09/15/93 05/05/21 Page 8 of 17 loan associations, investment maturities will not exceed two years. Investments in commercial paper will be restricted to 270 days. 14.0 INTERNAL CONTROL The Chief Financial Officer shall establish an annual process of independent review by an external auditor. This review will provide internal control by assuring compliance with policies and procedures. 15.0 PERFORMANCE STANDARDS The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs. The Otay Water District’s investment strategy is passive. Given this strategy, the basis used by the CFO to determine whether market yields are being achieved shall be the State of California Local Agency Investment Fund (LAIF) as a comparable benchmark. 16.0 REPORTING The Chief Financial Officer shall provide the Board of Directors monthly investment reports which provide a clear picture of the status of the current investment portfolio. The management report should include comments on the fixed income markets and economic conditions, discussions regarding restrictions on percentage of investment by categories, possible changes in the portfolio structure going forward and thoughts on investment strategies. Schedules in the quarterly report should include the following: •A listing of individual securities held at the end of the reporting period by authorized investment category. •Average life and final maturity of all investments listed. •Coupon, discount or earnings rate. •Par value, amortized book value, and market value. •Percentage of the portfolio represented by each investment category. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 09/15/93 05/05/21 Page 9 of 17 17.0 INVESTMENT POLICY ADOPTION The Otay Water District’s investment policy shall be adopted by resolution of the District’s Board of Directors. The policy shall be reviewed annually by the Board and any modifications made thereto must be approved by the Board. 18.0 GLOSSARY See Appendix A. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 09/15/93 05/05/21 Page 10 of 17 APPENDIX A: GLOSSARY ACTIVE INVESTING: Active investors will purchase investments and continuously monitor their activity, often looking at the price movements of their stocks many times a day, in order to exploit profitable conditions. Typically, active investors are seeking short term profits. AGENCIES: Federal agency securities and/or Government-sponsored enterprises. BANKERS’ ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. BENCHMARK: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments. BROKER/DEALER: Any individual or firm in the business of buying and selling securities for itself and others. Broker/dealers must register with the SEC. When acting as a broker, a broker/dealer executes orders on behalf of his/her client. When acting as a dealer, a broker/dealer executes trades for his/her firm's own account. Securities bought for the firm's own account may be sold to clients or other firms, or become a part of the firm's holdings. CERTIFICATE OF DEPOSIT (CD): A short or medium term, interest bearing, FDIC insured debt instrument offered by banks and savings and loans. Money removed before maturity is subject to a penalty. CDs are a low risk, low return investment, and are also known as “time deposits”, because the account holder has agreed to keep the money in the account for a specified amount of time, anywhere from a few months to several years. COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMMERCIAL PAPER: An unsecured short-term promissory note, issued by corporations, with maturities ranging from 2 to 270 days. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 09/15/93 05/05/21 Page 11 of 17 COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the Otay Water District. It includes detailed financial information prepared in conformity with generally accepted accounting principles (GAAP). It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed statistical section. COUPON: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a set date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DEBENTURE: A bond secured only by the general credit of the issuer. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities). DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount. DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued at a discount and redeemed at maturity for full face value, e.g., U.S. Treasury Bills. DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 09/15/93 05/05/21 Page 12 of 17 FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L’s, small business firms, students, farmers, farm cooperatives, and exporters. FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures deposits in member banks and thrifts. FEDERAL FARM CREDIT BANK (FFCB): The Federal Farm Credit Bank system supports agricultural loans and issues securities and bonds in financial markets backed by these loans. It has consolidated the financing programs of several related farm credit agencies and corporations. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations. FEDERAL AGRICULTURAL MORTGAGE CORPORATION (FAMC or Farmer Mac): A stockholder owned, publicly-traded corporation that was established under the Agricultural Credit Act of 1987, which added a new Title VIII to the Farm Credit Act of 1971. Farmer Mac is a government sponsored enterprise, whose mission is to provide a secondary market for agricultural real estate mortgage loans, rural housing mortgage loans, and rural utility cooperative loans. The corporation is authorized to purchase and guarantee securities. Farmer Mac guarantees that all security holders will receive timely payments of principal and interest. FEDERAL HOME LOAN BANK (FHLB): Government sponsored wholesale banks (currently 12 regional banks), which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC or Freddie Mac): A stockholder owned, publicly traded company chartered by the United States federal government in 1970 to purchase mortgages and related securities, and then issue securities and bonds in financial markets backed by those mortgages in secondary markets. Freddie Mac, like its competitor Fannie Mae, is regulated by the United States Department of Housing and Urban Development (HUD). OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 09/15/93 05/05/21 Page 13 of 17 FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA or Fannie Mae): FNMA, like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae is a private stockholder-owned corporation. The corporation’s purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA’s securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system. FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC. (FINRA): An independent, not-for-profit organization authorized by Congress to protect America’s investors by making sure the securities industry operates fairly and honestly. It is dedicated to investor protection and market integrity through effective and efficient regulation of the securities industry. FINRA is the successor to the National Association of Securities Dealers, Inc. (NASD). GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): A government owned agency which buys mortgages from lending institutions, securitizes them, and then sells them to investors. Because the payments to investors are guaranteed by the full faith and credit of the U.S. Government, they return slightly less interest than other mortgage-backed securities. INTEREST-ONLY STRIPS: A mortgage-backed instrument where the investor receives only the interest, no principal, from a pool of mortgages. Issues are highly interest rate sensitive, and cash flows vary between interest periods. Also, the maturity date may occur earlier than that stated if all loans within the pool are pre-paid. High prepayments on underlying mortgages can return less to the holder than the dollar amount invested. INVERSE FLOATER: A bond or note that does not earn a fixed rate of interest. Rather, the interest rate is tied to a specific interest OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 09/15/93 05/05/21 Page 14 of 17 rate index identified in the bond/note structure. The interest rate earned by the bond/note will move in the opposite direction of the index. An inverse floater increases the market rate risk and modified duration of the investment. LEVERAGE: Investing with borrowed money with the expectation that the interest earned on the investment will exceed the interest paid on the borrowed money. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL AGENCY INVESTMENT FUND (LAIF): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase/reverse repurchase agreements that establish each party’s rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller borrower. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded. MUTUAL FUNDS: An open-ended fund operated by an investment company which raises money from shareholders and invests in a group of assets, in accordance with a stated set of objectives. Mutual funds raise money by selling shares of the fund to the public. Mutual funds then take the money they receive from the sale of their shares (along with any money made from previous investments) and use it to purchase OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 09/15/93 05/05/21 Page 15 of 17 various investment vehicles, such as stocks, bonds, and money market instruments. MONEY MARKET MUTUAL FUNDS: An open-end mutual fund which invests only in money markets. These funds invest in short term (one day to one year) debt obligations such as Treasury bills, certificates of deposit, and commercial paper. PASSIVE INVESTING: An investment strategy involving limited ongoing buying and selling actions. Passive investors will purchase investments with the intention of long-term appreciation and limited maintenance, and typically don’t actively attempt to profit from short term price fluctuations. Also known as a buy-and-hold strategy. PRIMARY DEALER: A designation given by the Federal Reserve System to commercial banks or broker/dealers who meet specific criteria, including capital requirements and participation in Treasury auctions. These dealers submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission registered securities broker/dealers, banks, and a few unregulated firms. PRUDENT PERSON RULE: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state—the so-called legal list. In other states the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital. PUBLIC SECURITIES ASSOCIATION (PSA): A trade organization of dealers, brokers, and bankers who underwrite and trade securities offerings. QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 09/15/93 05/05/21 Page 16 of 17 RANGE NOTE: An investment whose coupon payment varies and is dependent on whether the current benchmark falls within a pre-determined range. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return. REGIONAL DEALER: A securities broker/dealer, registered with the Securities & Exchange Commission (SEC), who meets all of the licensing requirements for buying and selling securities. REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security “buyer” in effect lends the “seller” money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money that is increasing bank reserves. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection. SECONDARY MARKET: A market made for the purchase and sale of outstanding securities issues following their initial distribution. SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation. SEC RULE 15C3-1: See Uniform Net Capital Rule. STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, FAMCA, etc.), and Corporations, which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 09/15/93 05/05/21 Page 17 of 17 TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year. TREASURY BONDS: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years. TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. Annual Investment Policy Review & Delegation of Investing Authority to CFO ▪Annual Investment Policy Review ▪California Government Code Section 53646 ▪Recommends the Investment Policy be tendered to the Board annually for review ▪Each year, the District reviews Investment Policy No. 27 against any legislative changes to ensure compliance ▪No legislative changes for the current fiscal year ▪The District annually recertifies its authorized security broker/dealers by reviewing their most current audited financial statements, Financial Industry Regulatory Authority (FINRA) records, registrations and insurance. ▪As part of this process, brokers are asked to certify they have read and understand the District’s Investment Policy and may recommend changes, if applicable. ▪No changes were recommended from the brokers’ review ▪Each year, as part of the annual financial audit, the District’s investments are tested by the External Auditors for compliance with the Investment Policy. ▪Every three years, the District submits its Investment Policy to the California Municipal Treasurers Association (CMTA) for certification ▪Certified March 2026 ▪Delegation of Investment Authority to CFO ▪California Government Code Section 53607 ▪Management responsibility for the investment program is annually delegated to the Chief Financial Officer (CFO) 1 Attachment C STAFF REPORT TYPE MEETING: Regular Board Meeting MEETING DATE: May 13, 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 7a 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 andWednesday of each month. These dates will be published on the District’s website. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 13, 2026 SUBMITTED BY: Andrea Carey, Customer Service Manager PROJECT: P2662 DIV. NO. All APPROVED BY: Joseph R. Beachem, Chief Financial Officer Jose Martinez, General Manager SUBJECT: Update on the District-Wide Meter Changeout Project GENERAL MANAGER’S RECOMMENDATION: This is an informational item only. COMMITTEE ACTION: N/A PURPOSE: To provide the Board with an update on the District-wide Meter Changeout Project. BACKGROUND: On January 8, 2025, the Board authorized the General Manager to enter into an agreement with Badger Meter, Inc. for the purchase and installation of water meters and cellular transponders as part of a District-wide meter changeout program scheduled to span the next six years. This project includes the changeout of ¾-inch to 2-inch water meters and the installation of cellular Automated Metering Infrastructure (AMI). ANALYSIS: The Meter Changeout Project is expected to span six years. District staff; the District’s project management consultant, ESource; the meter manufacturer, Badger Meter; and the installation contractor, Professional Meters, Inc.(PMI); spent the latter part of calendar year 2025 discussing system design, establishing testing requirements, and planning customer communication materials and outreach schedule. From January through April of this year, AGENDA ITEM 8a approximately 500 meters were installed as part of the Initial Deployment Area (IDA). The IDA meters were selected to test project workflow, field quality control, cellular connectivity, and overall system readiness before proceeding to full deployment. The project is currently in the IDA phase, and, pending successful system testing, full deployment is anticipated to begin in August 2026. Project Workflow Prior to beginning the project, the project team established workflows for data transfer, customer communications, and work order management. The IDA allowed these workflows to be implemented on a smaller scale to test functionality. Data Transfer The project requires data to flow in multiple directions. Data from the District to PMI’s work order management system is transmitted daily to ensure PMI has the most current customer and meter information. In return, all completed meter changeout information is relayed from PMI to the District so the final read on the old meter and all new meter information is promptly entered into the utility billing system. To minimize staff time associated with this process, the District’s IT staff developed automated processes to facilitate these data transfers. Once the meters are installed and added to the District’s billing system, the information needs to be relayed to Badger Meter’s meter data management system (Beacon). This allows customer account information to be connected to the meter/cellular endpoint within Badger’s system, which is necessary for meter read exports, data analysis, and account troubleshooting. As new meters were added, staff successfully imported and exported data from both systems. After confirming that the process was functioning effectively, an automated process was implemented to download the files from the utility billing system, which are then imported into Beacon by the District’s Meter Services team. Customer Communication Prior to the installation of any meters, District staff developed various communication tools, including a project webpage, a Frequently Asked Questions (FAQs) document, social media posts, a postcard, a door hanger, an email, and an automated phone call recording. Most recently, the District completed a customized project video addressing common questions about the installation process and overall project. All outreach materials are available in English and Spanish. The communication workflow was explained in depth during the Meter Changeout informational item presented to the Board in November. In summary, each residential property within the IDA was mailed a postcard prior to meter installation. Emails and phone calls were also sent to affected customers approximately one week prior to the installers being in their neighborhood. On the day of installation, a door hanger was left at the property upon completion of the installation or to notify the customer if the meter could not be changed out due to an issue. Work Order Management PMI utilizes a robust work order management system that allows District staff to view the addresses within a route scheduled to be changed out and the status of the changeout. For completed changeouts, staff can review photographs of the site prior to installation, the old meter prior to removal, the newly installed meter, and the final condition of the meter box. The work order management system also tracks meters that could not be changed out and have been turned back over to the District. Common reasons for this return to the District include a non-functioning District-side shutoff valve, an inaccessible meter, or an improper customer-side connection. If the issue can be resolved quickly, the meter can be returned to PMI’s active workload; otherwise, the District will complete the changeout and it will show removed in PMI’s system. District staff have worked closely with PMI throughout the IDA phase to ensure the installation process proceeds smoothly. Meter Services staff maintain regular communication with the PMI supervisor, and when necessary, meet installers onsite to assist with locating and accessing meters. Full Deployment Although the IDA installations were completed successfully, there are additional steps necessary prior to full deployment. The following items will be addressed in the coming months to prepare for the first full year of installations, currently anticipated to begin in August: • Beacon Training for End Users o The meter data management system will allow Customer Service and Meter Services to access detailed meter information, including 15-minute interval data. • Data Management o The transition to AMI will generate a significant volume of data that must be managed effectively. • Project Dashboard o Development of a platform to provide District stakeholders with a high-level summary of the project’s progress. • Meter and Cellular Performance o Many meters in the IDA were selected due to their location in areas that may have difficult cellular performance, staff will be monitoring their connections. In addition, staff will be doing some field read verifications to ensure the Beacon readings match the physical meters. FISCAL IMPACT: Joe Beachem, Chief Financial Officer This is an informational item only. STRATEGIC GOAL: Invest in technology infrastructure to enhance customer engagement and satisfaction by implementing advanced metering solutions that streamline service delivery and provide customers with timely, accessible information about their water use. LEGAL IMPACT: This is an informational item only. Attachments: A) Committee Action B) PowerPoint Presentation ATTACHMENT A SUBJECT/PROJECT: Update on the District-Wide Meter Changeout Project COMMITTEE ACTION: The Finance & Administration Committee reviewed this item at a meeting held on April 23, 2026, and the following comments were made: •Staff provided an update on the AMI project and indicated that full- scale deployment is anticipated to begin in August 2026, with theproject expected to span approximately six years. •Staff reported that the automated data transfer processes betweenthe District's billing system and the contractor's (PMI) work order management system have been successfully implemented. •In response to the Committee’s inquiry about whether the Spanish- language version of the video was ready, staff responded that it wascurrently in production and would be available soon; however, at present, it is only available in English. •During a discussion of various issues related to the IDA, the Committee inquired about the process for addressing overgrownvegetation on a customer’s property, specifically whether customers are required to resolve the issue themselves or if staff enters theproperty to address it. Staff indicated that the District firstprovides customers with an opportunity to resolve the issue on their own; if they are unable to do so, District staff will address it.The Committee further asked whether the District charges the customer for this work, and staff responded that it has the ability to chargethe customer but approached this on a case-by-case basis, dependenton the work required. •Staff shared that the initial 500-meter test yielded a 100% successrate for cellular read performance, including in areas whereconnectivity challenges had been anticipated. Staff noted that giventhe District’s terrain and topography, the success rate was expected to be lower. •In response to the Committee’s question regarding how meter readsare transferred to the billing system, staff indicated that it is acoordinated effort between the meter services and customer service teams who complete a manual file transfer. This process will be automated in the new CIS system, SpryPoint. This positive result was attributed to lessons learned from past projects and the experience of the contractors. •The Committee suggested improving the accessibility of Spanish-language materials and recommended that staff explore adding additional languages based on demographic data, as well as increasingthe font size on door hangers to improve readability. •The Committee stated they were pleased with the information providedand commended staff for the ongoing communication efforts withDistrict customers. Upon completion of the discussion, the Committee supported staff’s recommendation and presentation to the full board as an informational item. Water Meter Changeout Project Update Attachment B Meter Changeout •Meters are reaching the end of their 20-year lifecycle •District contracted with Esource, Inc. to assist with the procurement process •Request for Proposal issued mid-June 2024, to include meters, installation, AMI, andMDMS. Responses due July 31, 2024 •Six proposals received •Staff from Finance, Engineering, Water Operations,and IT involved in evaluation Meter Changeout •The Otay Board of Directorsauthorized the General Manager to enter into an agreement with Badger Meter, Inc. for a District-wide meter changeout program Project Timeline September 2025 - August 2026 August 2026 - June 2031 Planning & System Design Initial Meter Deployment (500 meters) System Integration & Testing Full Scale Deployment Meter Changeout •Meters are reaching the end of their 20-year lifecycle •District contracted with Esource, Inc. to assist with the procurement process •Request for Proposal issued mid-June 2024, to include meters, installation, AMI, and MDMS. Responses due July 31, 2024 •Six proposals received •Staff from Finance, Engineering, Water Operations,and IT involved in evaluation Initial Meter Deployment •In anticipation of the initialmeter deployment, staff established testing requirements and planned customer communications and the outreach schedule from September – December 2025. •Installation of approximately500 meters occurred from January – April 2026. •The initial meter deploymentwill allow staff to test installation workflow, field quality control, cellular connectivity, and system readiness. Data Transfer Customer Communication Customer Communication Customer Communication Work Order Management Work Order Management Return to Utility Next Steps ➢Beacon training for all end users. ➢Implement best practices for data management. ➢Develop a project dashboard. ➢Continue to evaluate meter and cellular performance. Questions? STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 13, 2026 PROJECT: Various DIV. NO. ALL SUBMITTED BY: Michael Kerr, Information Technology Manager APPROVED BY: Kevin Koeppen, Chief, Administrative Services Jose Martinez, General Manager SUBJECT: FY26 MID-YEAR REPORT OF THE DISTRICT’S FY23-26 STRATEGIC PLAN GENERAL MANAGER’S RECOMMENDATION: No recommendation. This is an informational item only. COMMITTEE ACTION: Please see “Attachment A”. PURPOSE: To provide a mid-year report on the District’s FY23-26 Strategic Plan for FY26. ANALYSIS: Summary The current Otay Water District Strategic Plan is a four-year initiative, spanning from the start of FY23 through the end of FY26. This report provides a mid-year update on the progress made during the last year of the plan. Objectives – Target 90% Strategic Plan objectives are designed to ensure the District’s execution of mission-derived strategies and the implementation of changes necessary to guide the agency, address emerging challenges, and foster positive adaptation to change. FY26 mid-year results are at 91%, with 32 of 35 active items completed or on schedule; one (1) behind AGENDA ITEM 8b schedule, and two (2) on hold. Objective Behind Schedule (1): INTERNAL BUSINESS PROCESS Strategy: Leverage the use of renewable and clean energy resources and reduce the use of hazardous chemicals. Objective: Evaluate and implement alternative energy opportunities. Evaluation of alternative energy options is being conducted through the Climate Adaptation and Resiliency Plan (CARP). CARP includes a detailed analysis of climate impacts, resilience strategies, and energy opportunities. As the effort has expanded beyond the original scope, requiring data validation, cross-department coordination, and consideration of regulatory and funding factors, this objective is behind schedule, with an estimated completion date at the end of FY27. Objectives On Hold (2): FINANCIAL Strategy: Maintain a long-range financing plan that sets forth the long-term funding needs of the District. Objective: Evaluate banking functions for lower cost and process efficiencies. This objective remained on hold as staff prioritized several time- sensitive projects, including implementation of the new customer information system (CIS). With the upcoming implementation of a new CIS, the District will also be updating its customer-facing bill and payment portal. Staff anticipates soliciting a new payment processor in the third and fourth quarter of FY26. At that time, staff will also be looking at cost-savings options that may be implemented with 051015202530354045 32 1 2 On Schedule/Completed Behind On Hold 32 of 35 Objectives are Completed or On Schedule (91%) the new vendor. These options are expected to be presented for management review by the end of FY26 but not implemented until the rollout of the new customer portal anticipated in third quarter of 2027. Objective: Evaluate the District’s cash reserve policies to consider optimal uses and levels of reserves, to ensure financial resiliency. This objective remained on hold while the final steps of the financial ERP implementation become operational. While the system is live, staff is completing the operational implementation of the budgeting module and building supporting reporting models. Progress is also pending the hiring of a new Finance Manager and the issuance of debt in FY27. Key Performance Indicators (KPI’s) – Target 75% KPI’s are designed to track the District’s day-to-day performance. These indicators measure the effectiveness and efficiency of essential operational services. The District’s overall KPI goal of 75% is considered “on target”. For FY26, the mid-year results surpassed this goal, achieving 100% with 22 of 22 items meeting or exceeding the desired level. KPIs are defined using established AWWA performance benchmarks, water agency standards, and historical trends. Of the total measures outlined in the Strategic Plan, eleven (11) are reported annually to include: •Water Rate Ranking •Sewer Rate Ranking •Water Debt Coverage •Sewer Debt Coverage •Reserve Level •Accounts Per Full-Time Employee (FTE) •Hydrant Maintenance Program •Business Recovery Exercises •Vulnerability Assessments •Potable Tank Inspection and Cleaning •Injury Incident Rate One (1) measure is reported biennially to triennially: •Customer Opinion Survey Next Steps Staff will continue to focus on the plan’s objectives, key performance indicators, and emerging trends as it closes out this Strategic Plan and transitions to the new FY27-30 Strategic Plan adopted by the Board at the April 1, 2026 Board meeting. Committee Reports – Slideshow The Strategic Plan mid-year results are presented to both the Engineering, Operations, and Water Resources Committee and the Finance and Administration Committee (see “Attachment B”). The Strategic Plan is also available on the District’s website. FISCAL IMPACT: Joe Beachem, Chief Financial Officer Informational item only; no fiscal impact. 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 – PowerPoint Presentation 22 of 22 Key Performance Indicators are On Target (100%) 0510152025303540 22 0 On Target Not on Target ATTACHMENT A SUBJECT/PROJECT: FY26 MID-YEAR REPORT OF THE DISTRICT’S FY23-26 STRATEGIC PLAN COMMITTEE ACTION: The Engineering, Operations, & Water Resources Committee, and the Finance & Administration Committee reviewed this item at a meeting held on April 22 and 23, 2026, respectively, and the following comments were made: •Staff indicated that of 35 total objectives, 32 are on schedule or completed; two (2) are on hold; and one objective (evaluation of alternative energy opportunities) is behind schedule and is now expected to be completed by the end of FY27 as part of the Climate Adoption and Resilience Plan (CARP). •The Committee discussed the valve exercising program, which is designed to service approximately 20% of valves each year. In response to the Committee’s question about prioritization, staff shared that the fire hydrant valves are included in the valve exercising program. In addition, valves serving critical facilities such as hospitals and schools do receive prioritization. Staff also noted the use of specialized equipment to measure torque and assess valve condition, helping prevent valve seizing and ensuring proper operation. Staff further indicated that regularly exercising the valves supports overall system reliability. •Staff reported that all 22 KPI’s reported quarterly are on target, which includes metrics for water quality complaints, CIP expenditures, system leaks, sewer overflows, and valve exercising. Staff noted that achieving 100% on-target KPI’s is rare. •The presentation included photos of staff and drone footage, which the Committee praised for making the report more personable and visually appealing. Upon completion of the discussion, the Committee supported staff’s recommendation and presentation to the full board as an informational item. OTAY WATER DISTRICT STRATEGIC PLAN FY2026 Mid-Year Report OTAY WATER DISTRICT STRATEGIC PLAN FY2026 Mid-Year Report 2023 2026 ATTACHMENT B BALANCED SCORECARDBALANCED SCORECARD 2 Focuses on the financial performance of the District FINANCIALFINANCIAL Focuses on the District’s culture and development of staff to ensure there is a productive and skilled workforce in place LEARNING AND GROWTH LEARNING AND GROWTH Focuses on customer service levels, satisfaction, brand, and confidence CUSTOMERCUSTOMER Focuses on business processes designed to deliver and improve customer objectives and services INTERNAL BUSINESS PROCESS INTERNAL BUSINESS PROCESS 90% Total 35 ON SCHEDULE COMPLETED BEHIND SCHEDULE ON HOLD OBJECTIVESOBJECTIVES MID-YEAR FY 2026 32 Objectives 32/35 = 91% Overall Target Active/Completed 35 Not Started 0 1 Objective 1/35 = 3% 2 Objectives 2/35 = 6% CUSTOMER Enhance and build public awareness of the District’s priorities, initiatives, programs, and services Collect and analyze customer feedback on District operations, projects, programs, service experience, and expectations Advance the District's web and social media presence Enhance internal communications, tools, and technology to disseminate information to District staff effectively Enhance education, outreach, and communication tools to the public on the understanding of water supply constraints and rates and how they affect/support a reliable water supply 4 On ScheduleCompleted EILEEN SALMERON Communications Assistant (With 2025 Landscape Winner, Catherine S.) FINANCIAL Maintain a long-range financing plan that sets forth the long-term funding needs of the District Evaluate grant funding opportunities Evaluate banking functions for lower cost and process efficiencies Evaluate the District’s cash reserve policies to consider optimal uses and levels of reserves, to ensure financial resiliency Conduct an evaluation of a health savings investment account program for an optional post-employment benefit Conduct a compensation study to evaluate labor industry conditions and the District’s competitiveness Invest in technology infrastructure to enhance customer engagement and satisfaction Evaluate Interactive Voice Response (IVR)/Online customer portal for water use management and assistance Deploy Advanced Metering Infrastructure (AMI) technology in service areas to improve the District Operation 5 Left to right: OLIVIA READY & BETH GENTRY Engineering Staff On-HoldOn ScheduleCompleted INTERNAL BUSINESS PROCESS Leverage the use of renewable and clean energy resources and reduce the use of hazardous chemicals Evaluate and implement energy-efficient systems Evaluate and implement alternative energy opportunities Advance Clean Fleet Regulations District Implementation Program of Zero or near Zero Emissions Vehicles Reduce the District’s chemical footprint by substituting hazardous chemicals for similar, less hazardous chemicals Implement technologies to improve response time, security, and operational effectiveness Conversion of the District’s enterprise Geographic Information System (GIS/Esri) from a Geometric Network to a Utility Network Model Conduct needs assessment/replacement of District's financial management system Maintain and regularly evaluate internal financial controls Leverage Cityworks to further develop job task process standardization and work order cost modeling 6 Behind ScheduleOn ScheduleCompleted JEFF GOIN Sr. Disinfection Technician INTERNAL BUSINESS PROCESS Develop appropriate water resource mix to meet the water reliability needs of the community Use the Water Facilities Water Management Plan/Urban Water Management Plan to analyze future needs and prescribe approaches to meeting future requirements Evaluate City of San Diego’s recycled water purchase Develop the District’s long-term water supply strategies and planning efforts with regional partnerships Respond to anticipated water shortages through rate structure modification, conservation assistance, and outreach Monitor and modify the Water Shortage Contingency Plan, as needed Identify, evaluate, and implement new opportunities for recycled water, including potential for potable reuse 7 On ScheduleCompleted JULIANA LUENGAS Environmental Compliance Specialist INTERNAL BUSINESS PROCESS Advancement of District's Asset Management Program Formalization of Standard Operating Procedures (SOP) and Planned Job Observations (PJO) Develop long-term strategic operations and maintenance program (Total Asset Management) Collect and maintain accurate asset records, including criticality, maintenance history, asset condition, and performance for continuous improvement Cloud migration of the District’s enterprise Geographic Information System (GIS/Esri) and the associated Asset Management and Field Applications Cyber and Physical Security Advance the use of the District's Supervisory Control and Data Acquisition (SCADA) system to further enhance the security and reliability of the distribution system and optimize administration Evaluate new disaster recovery solutions and advance the District's enterprise business continuity program 8 On ScheduleCompleted KEVIN WINDER Water Systems Operator III LEARNING AND GROWTH Coordinate workforce planning activities to determine future needs, identify gaps, and implement actions to close the gaps Maximize opportunities to develop employees through training and mentoring Evaluate the implementation of learning and development programs in coordination with partner agencies Analyze and identify workforce trends to address critical gaps between the current workforce and future needs Improve Organization Effectiveness Negotiate successor Memorandum of Understanding (MOU) with the employee association and unrepresented employees to focus on recruitment and retention Implement a cross-functional innovation committee to advance the District’s culture of collaboration and process improvement among departments 9 On ScheduleCompleted ANDREA CAREY Customer Service Manager KEY PERFORMANCE INDICATORSKEY PERFORMANCE INDICATORS MID-YEAR FY 2026 Overall Target 75% Total 34 Reported Quarterly 22 Reported Annually 11 22 KPIs 22/22 = 100% ON TARGET NOT ON TARGET 0 KPIs 0/23 = 0% Reported Biennial to Triennial 1 10 11 0.97 0.830 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Q1 Q2 Q3 Q4 Result Target 75th Percentile Median 25th Percentile TECHNICAL QUALITY COMPLAINT (AWWA | Customer Relations) DEANDRE SAVAGE Lead Water Systems Operator TARGET No more than 1.15 complaints per 1,000 customer accounts per quarter | No more than 4.6 complaints per 1,000 customer accounts annually CALCULATION Number of technical quality complaints per year/Number of active accounts per reporting period AWWA BENCHMARK Average of 75th Percentile, 2.6, and Median, 6.6, for population served between 100,001 – 500,000 (Combined Utilities) TARGET 100% of all health-related drinking water standards per quarter and annually CALCULATION Number of days the primary health regulations are met/Number of days in the reporting period AWWA BENCHMARK 100% - 75 th Percentile for population served between 100,001 – 500,000 (Water)12 100%100% (FY 23 Q1 & Q2 Result)98.10%97.94% 95% 96% 97% 98% 99% 100% Q1 Q2 Q3 Q4 Result Target ANSWER RATE 100%100% 95% 96% 97% 98% 99% 100% Q1 Q2 Q3 Q4 Result Target POTABLE WATER COMPLIANCE RATE (AWWA | Water Operations) TARGET 97% average answer rate per quarter and annually CALCULATION Number of calls answered/Total number of calls 13 $884.93 $1,183.81 $500 $700 $900 $1,100 $1,300 $1,500 $1,700 $1,900 Q1 Q2 Q3 Q4 Result Target DIRECT COST OF TREATMENT PER MGD EDOARDO GONZALEZ Reclamation Plant Operator III TARGET No more than $1255 MGD spent in Q1 & Q4 and $1673 MGD spent in Q2 & Q3 | No more than $1464 per MGD spent on wastewater treatment annually CALCULATION Total O&M costs directly attributable to sewer treatment/Total volume in MG for one quarter 14 15% 45% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q1 Q2 Q3 Q4 Result Target CIP PROJECT EXPENDITURES VS. BUDGET TARGET 95% of the budget annually Q1: 15% + Q2: 21% + Q3: 29% + Q4: 30% = 95% CALCULATION Actual Expenditures/Annual Budget BOARD MEMBERS & STAFF 870-2 Reservoir Tour 15 73%73% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q1 Q2 Q3 Q4 Result Target PLANNED POTABLE WATER MAINTENANCE RATIO IN $ TARGET 70% of all labor costs spent on preventative maintenance per quarter and annually CALCULATION Total Planned Maintenance Cost/Total Maintenance Cost -0.1% -0.8% -5% -3% -1% 1% 3% 5% Q1 Q2 Q3 Q4 Result Target CONSTRUCTION CHANGE ORDER INCIDENCE TARGET No more than 5% per quarter and annually CALCULATION Cost of Change Orders (not including allowances)/Original construction contract amount (not including allowances) 16 97% 83% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% Q1 Q2 Q3 Q4 Result Target PLANNED WASTEWATER MAINTENANCE RATIO IN $ TARGET 80% of all labor costs spent on preventative maintenance per quarter and annually CALCULATION Total Planned Maintenance Cost/Total Maintenance Cost 90%90% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q1 Q2 Q3 Q4 Result Target PLANNED RECYCLED WATER MAINTENANCE RATIO IN $ TARGET 70% of all labor costs spent on preventative maintenance per quarter and annually CALCULATION Total Planned Maintenance Cost/Total Maintenance Cost 17 4%4% 0% 1% 2% 3% 4% 5% 6% 7% Q1 Q2 Q3 Q4 Result Target DISTRIBUTION SYSTEM LOSS TARGET Less than 5% of unaccounted water per quarter and annually CALCULATION (Total Potable Water Purchased + Total Recycled Water Purchased & Produced) – (Total Measured Billed & Unbilled Water)/(Total Potable Water Purchased + Total Recycled Water Purchased & Produced) 99.99%99.99% 95% 96% 97% 98% 99% 100% 101% Q1 Q2 Q3 Q4 Result Target BILLINGACCURACY TARGET 99.8% billing accuracy per quarter and annually CALCULATION Number of correct bills/Number of bills issued during the reporting period 18 BRANDON PERRY Utility Crew Leader 0 00 1 2 3 4 5 6 7 8 9 10 Q1 Q2 Q3 Q4 Result Target 75th Percentile Median 25th Percentile SEWER OVERFLOW RATE (AWWA | Wastewater Operations) TARGET 0 overflows per quarter and annually CALCULATION 100 (Number of sewer overflows during the reporting period)/Total miles of pipe in the sewage collection system AWWA BENCHMARK 0 – 75 th Percentile for population served between 0-50,000 0.13 0.130 2 4 6 8 10 12 14 16 Q1 Q2 Q3 Q4 Result Target 75th Percentile Median 25th Percentile 0.13 0.26 0 2 4 6 8 10 12 14 16 18 20 Q1 Q2 Q3 Q4 Result Target 75th Percentile Median 25th Percentile POTABLE WATER DISTRIBUTION SYSTEM INTEGRITY (LEAKS) (AWWA | Water Operations) 19 POTABLE WATER DISTRIBUTION SYSTEM INTEGRITY (BREAKS) (AWWA | Water Operations) TARGET No more than 0.625 leaks per 100 miles of distribution piping per quarter | No more than 2.5 leaks per 100 miles of distribution piping annually CALCULATION 100 (Number of leaks)/Total miles of distribution piping AWWA BENCHMARK 2.5 – 75 th percentile for population served between 100,001-500,000 TARGET No more than 0.75 breaks per 100 miles of distribution piping per quarter | No more than 3 breaks per 100 miles of distribution piping annually CALCULATION 100 (Number of breaks)/Total miles of distribution piping AWWA BENCHMARK 3 – 75 th percentile for population served between 100,001-500,000 0 00 0.5 1 1.5 2 2.5 3 3.5 4 Q1 Q2 Q3 Q4 Result Target RECYCLED WATER SYSTEM INTEGRITY (LEAKS) 20 0 00 0.5 1 1.5 2 2.5 3 3.5 4 Q1 Q2 Q3 Q4 Result Target RECYCLED WATER SYSTEM INTEGRITY (BREAKS) TARGET No more than 0.625 leaks per 100 miles of recycled distribution system per quarter | No more than 2.5 leaks per 100 miles of recycled distribution system annually CALCULATION 100 (Number of leaks)/Total miles of recycled distribution system TARGET No more than 0.75 breaks per 100 miles of recycled distribution system per quarter | No more than 3 breaks per 100 miles of recycled distribution system annually CALCULATION 100 (Number of breaks)/Total miles of recycled distribution system 21 100%100% 95% 96% 97% 98% 99% 100% 101% Q1 Q2 Q3 Q4 Result Target MARK-OUT ACCURACY TARGET 100% mark-out accuracy per quarter and annually CALCULATION Number of mark-outs performed without an at-fault hit, which is damage to a District facility that results from a missing or erroneous mark-out/Total number of mark-outs 25% 50% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q1 Q2 Q3 Q4 Result Target EASEMENT EVALUATION AND FIELD INSPECTION TARGET 100% assigned easements, evaluated via desktop tools, and inspected annually 25 easements per quarter | 100 easements are assigned for FY26 CALCULATION Number of easements evaluated and inspected/Total easements assigned for the period 22 1715 2373 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 Q1 Q2 Q3 Q4 Result Target SYSTEM VALVE EXERCISING PROGRAM TARGET 20% of District valves exercised annually to accomplish 100% every five years 1133 valves per quarter | 4526 valves annually CALCULATION Total number of valves exercised per year Left to right: MARIO BALLEJOS & CARLOS AYALA Utility Maintenance Staff 23 MIRAN JAFF Facilities Maintenance Technician 0.73% 2.19% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% Q1 Q2 Q3 Q4 Result Target EMPLOYEE VOLUNTARY TURNOVER RATE TARGET Less than 1.25% turnover per quarter | Less than 5% turnover annually CALCULATION Number of voluntary terminations (not including retirements)/Average number of employees 5.80 12.29 0 5 10 15 20 25 30 Q1 Q2 Q3 Q4 Result Target 75th Percentile Median 25th Percentile TRAINING HOURS PER EMPLOYEE (AWWA | Organizational Development) 24 TARGET 3.9 hours per employee per quarter | 15.6 hours per employee annually CALCULATION Total qualified training hours for all employees/Average number of FTEs AWWA BENCHMARK 15.6 – Median for combined utilities 9.49 18.09 0 5 10 15 20 25 30 Q1 Q2 Q3 Q4 Result Target SAFETY TRAINING PROGRAM TARGET 6 hours per field employee per quarter | 24 hours per field employee annually CALCULATION Total qualified safety training hours for field employees/Average number of field employees RESOURCE LINKS Otay Water District Website | Strategic Plan FY23 - FY26 Strategic Plan Digital Publication QUESTIONS?QUESTIONS? STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 13, 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: Community Outreach Event – On April 18, Otay served as a community partner sponsor of the South Bay Earth Day festival at the Chula Vista Bayfront Park, which drew more than 2,000 attendees, various vendors, including the District’s booth, and activities celebrating sustainability. 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 rates, the 2025 Urban Water Management Plan, Water Awareness Month, affordability, water-use efficiency, 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. Business Outreach - Communications staff attended the South County Economic Development Corporation’s (SCEDC) board meeting, and the Albondigas combined San Diego, East County, and South County luncheon. At Albondigas, Otay President and San Diego County Water Authority Board Member Francisco Rivera spoke on a panel alongside Water Authority Board Chair Nick Serrano, Water Authority Vice Chair Frank Hilliker, and Scott Maloni from Black & Veatch, who moderated. The panel was titled, “Shaping San Diego’s Water Future: Recycling, Rates, and Innovation.” AGENDA ITEM 9 2 San Diego Women in Water Lunch – On April 29, the District cosponsored the CA-NV AWWA's San Diego Women in Water Lunch held at the Sweetwater Authority's Robert A. Purdue Water Treatment Plant in Spring Valley. Attendees enjoyed a tour of the plan and a presentation by The Water Foundation Chair Celeste Cantú, who reflected on key lessons from her career and encouraged both new and established professionals in the water sector. California Special Districts Association (CSDA) Legislative Days – In April, staff participated in CSDA Legislative Days. Legislative Days brings together special district leaders to stay informed and take action. It’s a fast-paced, one-and-a-half-day symposium that includes legislative speakers and pre-arranged State Capitol office visits to educate lawmakers on the biggest public policy issues facing the 3 communities we collectively serve. The CSDA Legislative Committee guides advocacy priorities.  East County Advanced Water Purification (AWP) – Staff participated in an informational presentation and brief tour of the East County AWP project, which will create a new, local, sustainable, and drought-proof drinking water supply by using state-of-the- art technology to purify recycled water, producing up to 30% of East County’s drinking water. Purified water production is set to begin in late 2026. The East County AWP Program is a collaborative effort between Padre Dam Municipal Water District, the City of El Cajon, the County of San Diego, and Helix Water District.  Social Media – Staff continues to educate the public through social media updates about the District. The San Diego Union-Tribune’s Home and Garden section featured a story on the Otay Water District’s 2025 WaterSmart Landscape Contest winners and their landscape transformation project, which also gave the opportunity to mention the 2026 Landscape Contest. In addition, as part of its outreach efforts, staff posted about Earth Day and an overview video of the District’s Advanced Metering Installation Project launch. The video can be viewed at otaywater.gov/ami. Collectively, these posts reached a wide-ranging audience and generated increased engagement across the District’s platforms. 4 ADMINISTRATIVE SERVICES: GIS:  Enterprise GIS Collaboration with Regional Water Agencies - The District’s GIS program continues to be recognized as an advanced implementation among regional water agencies and has been highlighted by Esri as a successful example of Enterprise GIS adoption and operational integration. The GIS Manager met with the Director of Information Services from the Orange County Water District to exchange best practices related to implementing Enterprise GIS as a centralized platform supporting daily operations, organizational decision-making, and cross- department collaboration. Discussions included strategies for leveraging the Esri Advantage Program to evaluate emerging technologies, prepare for future system upgrades, and maximize the District’s technology investments. The meeting also addressed organizational considerations such as maintaining an efficient staffing structure, aligning staff roles with evolving technological needs, and fostering employee engagement to ensure long-term sustainability and continued advancement of the District’s Enterprise GIS program. 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.  Classification & Compensation Study – At the end of April, the District kicked-off a Classification and Compensation Study. A draft Study is anticipated to be completed at the end of calendar year 2026 and will be an integral part of the process to negotiate the next labor agreement with the Otay Water District Employees Association. The current labor agreement expires June 30, 2027.  Employee Service Milestones (5-year increments) – May/June 2026 o Jerry Lintner achieved 20 years of service on 5/1/26 and retired 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. o Ming Zhao will achieve 25 years of service on 6/4/26. o Emilyn Zuniga will achieve 5 years of service on 6/14/26. o Jeff Marchioro will achieve 15 years of service on 6/21/26. o Tenille Otero will achieve 10 years of service on 6/22/26. 5 New Hires/Recruitments – The District has completed or is in the process of recruiting for approximately 11 vacancies. Six recruitments are in process, five 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 Asset Management Specialist – Recruitment posted on 4/9/26. o Associate/Senior Civil Engineer – Recruitment posted on 4/20/26. o Customer Service Field Representative I (Part Time Temporary) – Recruitment posted on 2/19/26. Phone screens were completed on 3/18/26. Panel interviews were completed on 4/22/26. o Department Assistant – Recruitment posted on 2/6/26 and closed on 2/22/26. Skills tests were completed on 4/24/26. o Equipment Mechanic I/II – Phone screens were completed on 1/16/26 and 1/20/26. Skills testing and panel interviews were completed on 1/29/26 & 2/10/26. New hire started 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. New hire is scheduled to start on 5/4/26. 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. An internal candidate transferred into this position on 4/20/26. o Senior/Engineering Technician – Recruitment posted on 10/8/25. Panel interviews were completed on 1/13/26. Additional applications were reviewed by the department and panel interviews were completed on 4/28/26. 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. Additional phone screens were completed on 3/17, 3/18, and 3/19/26. An internal candidate is scheduled to transfer into the position on 5/4/26, creating a Meter Maintenance Worker vacancy. Additional skills tests and panel interviews are tentatively scheduled for 5/5/26. 6 o Water Systems Operator I/II/III – An internal candidate transferred to Disinfection Technician on 4/20/26, creating an additional vacancy. Pursuing candidates from recent recruitment. One new hire started on 4/13/26, and a second is scheduled to start on 5/18/26. IT Operations: Internship Program – Staff continues to advance development of a three-week summer internship pilot program, targeted to launch in June. The program framework has been established, and efforts are now focused on building the NEOGOV online recruitment application for prospective students and developing a recruitment flyer to support outreach and marketing. Staff is also working closely with individual departments to finalize a meaningful workplan for the candidates. Purchasing & Facilities: UAS Program Advancement and AIR Plan Enhancement - The District’s Unmanned Aircraft System (UAS or drone) program, established in 2022, is provided as a service through TeeDeeUAS, LLC. What began as an effort to develop internal capability has evolved into a contractor-supported program that delivers aerial documentation of District facilities and infrastructure. As part of this service, TeeDeeUAS provides certified pilots, manages flight operations, and supplies the procedures, safety protocols, and regulatory coordination necessary to operate in compliance with Federal Aviation Administration requirements. The program also provides aerial data used for operational and planning purposes, without requiring the District to build and maintain its own specialized drone program. The program is used to support several core District functions, including documenting asset conditions, supporting maintenance planning, enhancing security and situational awareness, and tracking capital projects. This allows staff to safely and efficiently capture information that would otherwise require more time, cost, or physical access to facilities. The result is a consistent visual record of District assets that supports better decision-making over time. 7 Example of UAS-captured imagery and 3D modeling used to document District facilities. These images allow staff to remotely assess conditions, track changes over time, and support maintenance and capital planning decisions without requiring physical access. As part of ongoing program enhancements, the District is now benefiting from an added Accident/Incident Response (AIR) Plan included within the service. The AIR Plan provides defined response procedures in the event of a drone-related incident, access to an on-call UAS specialist during flight operations, and support for incident investigation, documentation, and coordination with regulatory agencies if needed. This added layer of support strengthens risk management and ensures that any issues are handled in a consistent and professional manner. The incremental cost for this enhancement is limited to maintaining on-call support and avoids the significantly higher cost and complexity of developing equivalent capabilities in-house. As the program continues, the value is expected to increase as the District builds a historical library of aerial imagery over time, allowing staff to compare conditions year over year, better identify trends, and support more informed maintenance and capital planning decisions. FINANCE: FY 2027 Budget – Staff presented and discussed key budget assumptions for the FY 2027 budget at the Budget Board Workshop on April 20. Staff are currently working on materials for the Budget Board presentation on June 3, where the FY 2027 Operating and Capital Budgets will be presented for adoption. FY 2027 Audit – Davis Farr will be onsite for interim audit fieldwork from May 11–13. The Board can expect the auditors to send a Statement on Auditing Standards (SAS) No. 114 letter via email following the interim audit work, which will communicate the auditors’ responsibilities and the scope of the audit. This is standard practice and a required communication to those charged with governance under professional auditing standards. 8 GFOA Certificate of Achievement for Excellence in Financial Reporting – For the 22nd consecutive year, the GFOA awarded the District with the prestigious Certificate of Achievement for Excellence in Financial Reporting for the District’s Annual Comprehensive Financial Report for the fiscal year ended June 30, 2025. To be awarded a Certificate of Achievement, the District had to publish an easily readable and comprehensive report. This report must satisfy both Generally Accepted Accounting Principles (GAAP) and applicable legal requirements. Meter Replacement Project – The Initial Deployment Area (IDA) phase of the District’s meter changeout has been completed, with 498 new meters installed. Over the next few months, staff will work with Badger and ESource to complete training on the meter data management system, finalize the future-state system architecture, and monitor cellular connectivity and meter performance. The final draft of the English version of the project video has been completed, and the consultant is currently developing the Spanish version. Full deployment is anticipated to begin in August. SpryPoint Implementation – SpryPoint was approved by the Board to serve as the District’s utility billing software provider. Staff are currently completing additional discovery deliverables and reviewing 9 discovery documents in preparation for the first data conversion in May. The anticipated go-live date is May 2027. Financial Reporting: The financial reporting as of March 31, 2026, is as follows: o As of the ninth month ending March 31, 2026, there are total revenues of $109,844,284 and total expenses of $108,366,816. The revenues exceeded expenses by $1,477,468. The financial reporting for investments as of March 31, 2026, is as follows: o The market value shown in the Portfolio Summary and in the Investment Portfolio Details as of March 31, 2026, total $108,512,654 with an average yield to maturity of 3.852%. The total year-to-date earnings are $3,171,088. 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 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. On March 3, 2026, the Project was posted for bid. A Pre-Bid Meeting was held on March 11, 2026, which was attended by twelve (12) general contractors and a subcontractor. Three addendums were sent out to all bidders and plan houses to address questions and clarifications to the contract documents during the bidding period. Bids were publicly opened on March 25, 2026, with ten (10) bids ranging from $389,900 to $791,597. The Engineer’s Estimate was $475,000. Jennette Company, Inc., who was the lowest bidder, will be recommended for the award of the construction contract at the EO&WR Committee in April and Board in May. 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 hydropneumatic tank. The project is within budget and on schedule. (P2639, P2663, P2688) 10  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. Diagnostics have been run, and additional equipment is needed to correct the issues with hydraulics in the basin of the unit. Modifications are scheduled for early June 2026. The project is delayed due to Trojan’s recommended modification 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 (USACE) in February 2026. The permits will be finalized and submitted in May 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 advertised for construction 11 in December 2025, and the bids were opened on January 21, 2025. An online non-mandatory Pre-Bid Meeting was held on January 7, 2026, which was attended by seven (7) contractors and vendors. Site visits were made available to the contractors from January 12, 2026 through January 22, 2026. Two (2) addenda were sent to all bidders and plan houses to address questions and clarifications to the contract documents during the bidding period. The bids were publicly opened online on January 27, 2026, with bids ranging from $265,642 to $356,822. The Engineer’s Estimate was $150,000. The lowest responsible bidder was Rolcom, Inc. The contract award was reviewed by the EO&WR Committee on February 17, 2026, and approved by the Board on March 4, 2026. A Pre-Construction Meeting was held on April 28, 2026, and the 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. Hydraulic re-assessment is being evaluated prior to sending out notifications. (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 Grant of Easements 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 12 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 over the past few years on the 16-inch potable water line along Olympic Parkway, between East Palomar Street and State Highway 125, led to the establishment of this Capital Improvement Program project through the annual budget process. This project includes condition assessment and repair of interior joints within approximately 3,500 feet of the 16-inch cement mortar-lined and coated steel transmission main located east of East Palomar Street. Phase 1, consisting of an internal pipeline inspection to assess joint condition, was completed in June 2025. Phase 2, pipeline repair, is now underway, and staff has initiated preparation of construction plans, specifications, and cost estimates. 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. On April 2, 2026, Wood Rodgers delivered the revised preliminary design report. Construction of the project is estimated for completion in Fiscal Year 2031. The project is within schedule and budget. (S2069) 870-2 Reservoir and 870-1 Reservoir Floating Cover/Liner Replacement: The 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 13 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 late 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-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 contractor has mobilized to the site. 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’s 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) 14 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 Otay 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 continues 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) 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 had 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 17,2025 with concerns about the letter. District staff provided clarifications on October 29, 2025, and reached out to Sycuan staff to continue coordination efforts. Staff is working to set up baseline monitoring. 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 15 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 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 (WSCP) was sent in April 2026. Drafts of the UWMP and WSCP plan updates will be made available for public review and comment on the District’s website in May 2026 prior to the public hearing in June 2026. The project is within budget and on schedule. (P1210) 16 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 47.34 MG, well below the 139 MG planned annual capacity. Summary of Budgeted and Sold Meters and EDUs for Fiscal Year 2026 through March 2026: OPERATIONS: On Wednesday, March 18th, Fleet staff took delivery of a new Anderson Manufacturing Hydraulic Drop Deck trailer (New Trailer Number 6051). The Trailer offers safe and convenient ground level loading and transportation of field equipment, tools, and materials. Its Date Meters (Budgeted) Meters Sold (Actual) EDUs (Budgeted) EDUs Sold (Actual) Total $ (Budgeted) Total $ Collected (Actual) March 2026 7.8 2 31.8 2.5 $475,684 $59,960 Totals FY 2026 69.8 50 286.1 203 $4,281,156 $3,001,367 17 primary function will be to transport facilities’ Skyjack Scissor lift (No. 6034). The following events occurred on Thursday, March 19th: o The District hosted a tour of the Ralph W. Chapman Water Reclamation Facility for Cuyamaca College’s Center for Water Studies. The tour hosted 27 students enrolled in the program. The District has been routinely hosting tours every year for Cuyamaca College’s Center for Water Studies. The program coordinator reached out to the District to thank District staff for their efforts to support this tour. o Water Systems staff performed a final walk-through inspection at Sunbow II phase 3 in the Chula Vista area (developer project #D0162). No issues were noted on the punch lists. Final walk- through inspections are required to ensure proper operation/construction of newly built District infrastructure before being accepted. On Monday, March 23rd, third-quarter vibration testing results were received for 53 assets. All readings were within acceptable limits. Quarterly vibration monitoring will continue as part of the predictive maintenance program, supporting early detection of mechanical issues, reducing failure risk, minimizing downtime, and optimizing operational efficiency and maintenance costs. On Tuesday, March 24th, Water Systems staff assisted with a bacteriological sample for the new 27-inch jail tie-in. Staff loaded, flushed, and sampled tie-in located at the 870-1 reservoir site in the Otay Mesa area (CIP # P2228). The main was placed into service after bacteriological results passed. The following events occurred on Wednesday, March 25th: o Water Systems staff, with support from Utility Maintenance staff, performed a planned/unplanned shutdown on Steel Canyon Road in Rancho San Diego. This shutdown was performed to replace five water distribution valves that were found with excessive leak by during routine valve maintenance. Water isolation valves are critical components of a water distribution system for isolating pipe segments for repair and maintenance purposes. During the planned shutdown, one valve being used for the planned shutdown failed for unknown reasons, requiring an expansion of the shutdown area to facilitate replacement. The outage lasted 18 approximately 30 hours, affected approximately 193 meters, and six water trailers were deployed to support impacted customers. o Utility Maintenance staff responded to a six-inch water main break at 670 Point Fermine Court in Chula Vista. Upon excavation, staff discovered that a failed one-inch saddle damaged the six- inch ACP and caused undermining of the asphalt. Staff removed 12-foot by 12-foot dimension of undermined pavement and exposed the damaged main. The failed saddle was located with gas and electricity running within six inches of the main and AT&T/Cox in contact with the main. Approximately seven feet of pipe was replaced, and two new one-inch service saddles were installed. The excavation was backfilled, and staff removed remaining sediment and silt from the roadway and adjacent driveways, restoring the area. On Thursday, March 26th, Disinfection staff facilitated the triannual California Accidental Release Prevention (CalARP) compliance audit performed by an outside auditor, covering the three sites subject to the program. The audit, as part of CalARP requirement, resulted in a final report with minor recommendations. District staff will complete the recommendations during the allowable period. On Monday, March 30th through Wednesday, April 1st, inflows on the Otay #14 connection were dropped to zero at the request of Helix Water District so they could perform planned maintenance on their system. During this time, flow needs for the north District were met by using the Otay #11 connection from San Diego County Water Authority’s Pipeline #4 in Spring Valley. On Wednesday, April 1st, the annual calibration of 21 flowmeters was completed. All units were found to be within acceptable tolerances. This effort ensures measurement accuracy, supports system reliability, informs operational decision-making, and maintains compliance with regulatory requirements. On Thursday, April 2nd, Water Systems staff assisted with a bacteriological sample for the new 24-inch jail tie-in. Staff loaded, flushed, and sampled tie-in located at the 870-1 Reservoir site in the Otay Mesa area (CIP # P2228). The main was placed into service after bacteriological results passed. Friday, April 3rd, the District’s Ralph W. Chapman Water Reclamation Plant, participated in an Interagency Assistance with Padre Dam. 19 Padre Dam requested 15 gallons of Waste Activated Sludge (WAS) to apply to an odor control scrubber unit at one of their sewer lift stations. The WAS is used to help establish the biological process within the odor control scrubber unit. The following events occurred on Monday, April 6th: o A District contractor began the biannual reservoir floating cover cleaning and maintenance. This maintenance includes the cleaning of the entire cover, repairing minor holes and tears, adjusting cover tensioning devices, and maintaining the rainwater removal system as needed. This maintenance is required by the State Water Resources Control Board for the District’s four potable floating cover reservoirs. o Caltrans reported a dip on State Route 94/Campo Road, near Filippi’s Pizza Grotto. Water Systems staff performed leak detection and discovered a leaking one-inch copper service at 13060 Campo Road. On Thursday, April 9th, Utility Maintenance staff arrived on site and coordinated with a District vendor for traffic control and Caltrans. Due to the size of the roadway dip, a flagging operation was required, resulting in eastbound lane closure and heavy traffic delays. Staff removed approximately 15 feet of asphalt and excavated to expose the copper service. The service was repaired and backfilled, and base paving was completed the same day. Upon completion of all work and confirmation that the site was safe, traffic control was removed and the highway reopened to traffic. On Tuesday, April 7th, infrared testing was completed at 21 pump stations, with no issues detected. This effort is critical to proactively identify potential electrical issues, such as overheating components, loose connections, or load imbalance before they lead to equipment failure, unplanned downtime, or safety risks. On Monday, April 13th, Water Systems staff isolated the inlet section to 870-1 Reservoir to allow the District contractor to complete the new inlet manifold. This new manifold will tie-in the new 870-2 Reservoir and accommodate the new reconfigured 870-1 inlet. This is part of the 870-2 Reservoir CIP project (CIP# P2228). The shutdown lasted approximately 10 days with no customers affected by this shutdown. Tuesday, April 14th, the District’s Hazardous Waste Operations and Emergency Response (HAZWOP) Confined Space Rescue Team participated 20 in a training scenario involving aqua ammonia. The HAZWOP team joined the Water Systems Operations section on a training class going over topics related to transportation of aqua ammonia, safe handling, physical properties, spill, and leak procedures. The HAZWOP team then had a tabletop exercise at the District’s Regulatory Site discussing and outlining on the steps needed to respond to an Aqua Ammonia release during a chemical delivery. The training was conducted by the District’s aqua ammonia vendor. This is an annually required training.  The following events occurred on Wednesday April 15th: o The FY26 leak detection campaign was completed. A total of 10 District-side leaks were found by the contractor and repairs were made by District staff. In addition, there were 35 potential customer-side leaks identified, and staff have contacted those customers. This is the 14th consecutive year of the District’s leak detection campaign, and the combined surveys have now covered the District’s service area twice. Having a proactive leak detection program that finds leaks when they are smaller allows the District to schedule the repairs during normal working hours before they become larger and require immediate attention. o The District finalized the three-year audit on the CalARP, Risk Management Program, and Process Safety Management related to the District’s chlorine and aqua ammonia chemical inventories. These programs are required to be audited every three years. An outside consultant conducted the audit, and they provided a list of minor recommendations to consider and/or implement.  On Wednesday, April 16th, Fleet and Utility Maintenance staff pre- inspected a GapVax Hydro Excavator, located at Plumber’s Depot in Hawthorne, California. Pre-inspection found no discrepancies between the build/order sheet and the built unit. Delivery to District headquarters is scheduled for Wednesday, April 22nd.  On Monday, April 20th, 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 in the Otay Ranch area in Chula Vista (D0954). The main will be placed into service pending bacteriological results.  During this period, Fleet staff, supported by Pump/Electrical, SCADA and Water System staff, completed the annual site testing at 1485-1 Pump Station, 1655-1 Hydro Station, Hidden Mountain Lift 21 Station, and 1050-1 Hydro 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 this period, Fleet staff completed 12 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. PURCHASE ORDERS: A total of four (4) purchase orders, within staff’s signatory authority, were issued during the period of March 16, 2026 – April 15, 2026: Date PO Amount PO Description Vendor Name 3/18/2026 $22,412.83 Wax tape for the 20” steel main Steele Canyon CIP The Trenton Corp. 3/18/2026 $7,465.80 DG for the Reg and 30 MIL Vulcan Materials Company 3/23/2026 $5,200.00 ADA Door Upgrades - Bidding & CA Services MISCELLANEOUS INC 3/23/2026 $4,600.00 ADA Site Upgrades - Bidding & CA Services MISCELLANEOUS INC 3/26/2026 $22,499.16 UPS BATTERY REPLACEMENT ADVANCED POWER PROTECTION INDUSTRIES INC 4/8/2026 $23,605.87 850 PS Butterfly Valves Ferguson Waterworks 4/13/2026 $6,141.75 Purchase of soft starter 450/680 RPS CED Industrial and Light 4/13/2026 $5,980.26 Steele Canyon Fabrication of hangers Livin Metal, Inc. Water Purchases: Potable Water Purchases – The March potable water purchases were 2,442 acre-feet which is 46.5% above the budget of 1,668 acre-feet. Cumulative purchases for the year are 21,456 acre-feet, 0.9% above the year-to-date budget of 21,273 acre-feet. 22 Recycled Water Purchases – The recycled water purchases from the City of San Diego and production at the District’s treatment facility for the month of March were 314 acre-feet which is 191.0% above the budget of 108 acre-feet. Cumulative purchases and production for the year are 2,542 acre-feet, 6.8% below the year-to-date budget of 2,728 acre- feet. 23 The table below displays the year-to-date and monthly rainfall data for March. Rainfall March Y-T-D Actual 0.00 8.33 3-year Historical Average 3.10 11.00 Variance (3.10) (100.0%) (2.67) (24.2%) Potable, Recycled, and Sewer (Reporting up to the month of March): Total number of potable water meters: 52,119. Total number of sewer connections: 4,761. Recycled water consumption for the month of March: o Total consumption: 221.40 acre-feet or 72,138,616 gallons. o Average daily consumption: 2,327,052 gallons per day. o Total cumulative recycled water consumption since March 2025: 2,746 acre-feet. o Total number of recycled water meters: 820. Wastewater flows for the month of March: o Total basin flow: 1,640,710 gallons per day. This is a decrease of 3.5 percent from March 2025. o Spring Valley Sanitation District flows to Metro: 548,734 gallons per day. o Total Otay flow: 1,091,903 gallons per day. o Flow processed at the Ralph W. Chapman Water Recycling Facility: 851,097 gallons per day. o Flow to Metro from Otay Water District: 240,806 gallons per day. o By the end of March there were 6,760 wastewater EDUs. Exhibit A FOR THE PERIOD ENDING MARCH 31, 2026 Annual YTD REVENUES:Budget Actual Budget Variance Var % Potable Water Sales 81,546,000$ 59,387,231 60,705,850 (1,318,619) (2.2%) Recycled Water Sales 11,620,000 8,656,109 8,528,300 127,809 1.5% Potable Energy Charges 4,236,000 3,220,867 3,310,000 (89,133) (2.7%) Potable System Charges 15,518,000 11,462,022 11,487,700 (25,678) (0.2%) Potable MWD & CWA Fixed Charges 18,695,000 13,678,781 13,755,600 (76,819) (0.6%) Potable Penalties and Other Fees 1,200,000 888,481 906,000 (17,519) (1.9%) Total Water Sales 132,815,000 97,293,491 98,693,450 (1,399,959) (1.4%) Sewer Charges 3,564,000 2,666,305 2,643,900 22,405 0.8% Meter Fees 80,000 46,462 59,900 (13,438) (22.4%) Capacity Fee Revenues 3,278,000 2,442,831 2,458,400 (15,569) (0.6%) Non-Operating Revenues 2,618,900 2,142,439 1,916,600 225,839 11.8% Tax Revenues 6,854,000 4,431,030 4,280,000 151,030 3.5% Interest 898,000 821,726 673,200 148,526 22.1% Total Revenues 150,107,900$ 109,844,284 110,725,450 (881,166) (0.8%) EXPENSES: Potable Water Purchases 58,785,000$ 43,827,453 43,575,400 (252,053) (0.6%) Recycled Water Purchases 7,272,000 4,289,847 4,954,200 664,353 13.4% CWA-Fixed Transportation Charge 2,731,000 1,949,063 1,938,650 (10,413) (0.5%) CWA-Infrastructure Access Charge 3,288,000 2,404,359 2,466,000 61,641 2.5% CWA-Customer Service Charge 2,388,000 1,743,971 1,767,000 23,029 1.3% CWA-Reliability Charge 4,326,000 2,916,522 3,231,000 314,478 9.7% CWA-Emergency Storage Charge 5,502,000 4,003,483 4,056,000 52,517 1.3% MWD-Capacity Res Charge 1,092,000 787,633 804,000 16,367 2.0% MWD-Readiness to Serve Charge 648,000 485,474 486,000 526 0.1% Subtotal Water Purchases 86,032,000 62,407,805 63,278,250 870,445 1.4% Power Charges 4,643,000 3,471,216 3,492,300 21,084 0.6% Payroll & Related Costs 29,796,300 21,423,442 22,994,300 1,570,858 6.8% Materials & Maintenance 5,476,200 3,961,160 4,107,900 146,740 3.6% Administrative Expenses 10,688,700 6,604,824 8,011,100 1,406,276 17.6% Legal Fees 1,180,000 1,279,469 885,000 (394,469) (44.6%) Expansion Reserve 1,477,700 1,108,300 1,108,300 - 0.0% Betterment Reserve 9,076,000 6,807,000 6,807,000 - 0.0% OPEB Trust 671,000 503,300 503,300 - 0.0% General Fund Reserve 1,067,000 800,300 800,300 - 0.0% Total Expenses 150,107,900$ 108,366,816 111,987,750 3,620,934 3.2% EXCESS REVENUES(EXPENSES)-$ 1,477,468 (1,262,300) 2,739,768 OTAY WATER DISTRICT COMPARATIVE BUDGET SUMMARY F:/MORPT/FS2026-P9 Mar26 4/28/2026 11:15 AM The year-to-date excess revenues of $1,477,468 are $2,739,768 more than the budgeted excess expenses of ($1,262,300). COMPARATIVE BUDGET SUMMARY NET REVENUE AND EXPENSES FOR THE PERIOD ENDING MARCH 31, 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 $1,600,000 $1,800,000 $2,000,000 $2,200,000 $2,400,000 $2,600,000 $2,800,000 $3,000,000 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 March 31, 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 March 18, 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 March 2026 was 3.83%, which was 6 basis points lower than the previous month. LAIF's return was 4 basis points lower than last month, with an average effective yield of 3.83% for March 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: March 31, 2026 Investment State Limit Otay Limit Otay Actual 8.01: Treasury Securities 100% 100% 7.35% 8.02: Local Agency Investment Fund (Operations) $75 Million $75 Million $70.17 Million 8.03: Federal Agency Issues 100% 100% 5.52% 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% 6.54% 8.08: San Diego County Pool 100% 100% 14.63% 12.0: Maximum Single Financial Institution 100% 50% 1.25% $1,352,186 1.25% $86,037,091 79.34% $21,055,127 19.42% Otay Water District Investment Portfolio: 03/31/2026 Banks (Passbook/Checking/CD)Pools (LAIF & County)Agencies,Treasury Securities & Money Market Mutual Funds Total Cash and Investments: $108,444,404 (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 Mar 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 3.89 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 3.83 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 0.02 0.00 -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 OTAY Portfolio Management March 31, 2026 Portfolio Summary % of Portfolio Book ValueInvestmentsMarket Value Par Value Days to MaturityTerm YTM 360 Equiv. YTM 365 Equiv. Treasury Securities - Coupon 7,976,012.63 5417.45 3.7113227,967,360.008,000,000.00 3.763 Federal Agency Issues - Bullet 5,981,822.89 7505.59 3.9504115,990,470.006,000,000.00 4.005 Money Market 7,097,291.77 16.63 3.50517,097,291.777,097,291.77 3.553 Local Agency Investment Fund (LAIF)70,170,691.50 165.52 3.818170,169,346.4070,170,691.50 3.871 San Diego County Pool 15,866,399.52 114.82 3.837115,936,000.0015,866,399.52 3.890 107,092,218.31 100.00%Investments 107,160,468.17107,134,382.79 83 48 3.799 3.852 Cash (not included in yield calculations)Passbook/Checking 1,352,185.87 1 1.54511,352,185.871,352,185.87 1.567 108,444,404.18Total Cash and Investments 108,512,654.04108,486,568.66 83 48 3.799 3.852 Current Year March 31 350,662.55 Fiscal Year To Date 3,171,087.92 Average Daily Balance Effective Rate of Return 107,741,027.56 105,377,208.40 4.01%3.83% 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 AP Reporting period 03/01/2026-03/31/2026 Run Date: 04/23/2026 - 16:29 PM (PRF_PM1) 7.3.11 Report Ver. 7.3.11 05/01/2026 YTM 360 Page 1 Par Value Book Value MaturityDateStatedRateMarket Value March 31, 2026 Portfolio Details - Investments AverageBalanceIssuer Portfolio Management OTAY Days to MaturityMoody'sCUSIPInvestment # Purchase Date Treasury Securities - Coupon 3.897US TREASURY2429 1,000,000.00 1,000,338.04 06/15/20264.12504/25/2025 1,000,800.00 Aa191282CHH7 75 4.016US TREASURY2430 1,000,000.00 997,242.42 09/30/20263.50005/23/2025 998,630.00 Aa191282CLP4 182 3.977US TREASURY2431 1,000,000.00 998,849.95 08/31/20263.75006/13/2025 999,840.00 Aa191282CLH2 152 3.728US TREASURY2433 1,000,000.00 987,708.05 03/31/20272.50008/19/2025 988,250.00 Aa191282CEF4 364 3.546US TREASURY2434 1,000,000.00 1,003,072.49 01/15/20274.00009/17/2025 1,001,970.00 Aa191282CJT9 289 3.547US TREASURY2435 1,000,000.00 1,001,731.11 04/30/20273.75010/08/2025 999,580.00 Aa191282CMY4 394 3.472US TREASURY2436 1,000,000.00 990,098.27 07/31/20272.75011/13/2025 985,980.00 Aa191282CFB2 486 3.506US TREASURY2438 1,000,000.00 996,972.30 12/31/20273.37501/21/2026 992,310.0091282CPS4 639 7,976,012.637,967,360.008,000,000.009,909,153.49Subtotal and Average 3.711 322 Federal Agency Issues - Bullet 3.453Federal Agricultural Mortgage2439 1,000,000.00 1,002,142.96 01/26/20283.62502/13/2026 996,440.00 Aa131428JAB3 665 4.679Federal Farm Credit Bank2421 1,000,000.00 1,000,052.27 05/06/20274.75005/28/2024 1,011,480.00 Aa13133ERDS7 400 4.060Federal Farm Credit Bank2423 2,000,000.00 2,000,120.42 12/16/20264.12512/16/2024 2,005,720.00 Aa13133ERK42 259 3.560Federal Farm Credit Bank2437 1,000,000.00 998,224.20 12/09/20273.50012/10/2025 994,580.00 Aa13133ET3G0 617 3.886Federal Home Loan Bank2432 1,000,000.00 981,283.04 12/21/20261.25007/17/2025 982,250.00 Aa13130AQF65 264 5,981,822.895,990,470.006,000,000.006,109,856.47Subtotal and Average 3.950 411 Money Market 3.531Blackrock T - Fund Inst9010 4,117.82 4,117.82 3.5804,117.82RESERVE-10A WRB 1 3.531Blackrock T - Fund Inst9011 3,928,746.58 3,928,746.58 3.5803,928,746.58RESERVE 10 BABS 1 3.472FIRST AMERICAN US TREASURY9016 3,164,427.37 3,164,427.37 3.5203,164,427.37OWD TRUST & CUS 1 7,097,291.777,097,291.777,097,291.774,102,376.80Subtotal and Average 3.505 1 Local Agency Investment Fund (LAIF) 3.818STATE OF CALIFORNIA9001 70,170,691.50 70,170,691.50 3.87170,169,346.40LAIF 1 70,170,691.5070,169,346.4070,170,691.5070,444,885.05Subtotal and Average 3.818 1 San Diego County Pool 3.837San Diego County9007 15,866,399.52 15,866,399.52 3.89015,936,000.00SD COUNTY POOL 1 15,866,399.5215,936,000.0015,866,399.5215,682,528.55Subtotal and Average 3.837 1 107,741,027.56 107,134,382.79 3.799 48107,160,468.17 107,092,218.31Total and Average Portfolio OTAY AP Run Date: 04/23/2026 - 16:29 PM (PRF_PM2) 7.3.11 Report Ver. 7.3.11 YTM 360 Page 2 Par Value Book Value StatedRateMarket Value March 31, 2026 Portfolio Details - Cash AverageBalanceIssuer Portfolio Management OTAY Days to MaturityMoody'sCUSIPInvestment # Purchase Date US Bank 0.000STATE OF CALIFORNIA9003 3,100.00 3,100.003,100.00PETTY CASH 1 1.627STATE OF CALIFORNIA9004 1,283,889.34 1,283,889.34 1.6501,283,889.34OPERATING 1 0.000STATE OF CALIFORNIA9005 8,253.39 8,253.3907/01/2025 8,253.39PAYROLL 1 0.000STATE OF CALIFORNIA9014 27,058.03 27,058.0307/01/2025 27,058.03FLEX ACCT 1 0.000California Bank & Trust9017 29,885.11 29,885.1102/11/1999 29,885.11GRANT FUNDS 1 0.00 107,741,027.56 108,486,568.66 3.799 48 1Average Balance 108,512,654.04 108,444,404.18Total Cash and Investments Portfolio OTAY AP Run Date: 04/23/2026 - 16:29 PM (PRF_PM2) 7.3.11 OTAY Activity Report Sorted By Issuer March 1, 2026 - March 31, 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 11.233.580 0.00RESERVE-10A WRB Blackrock T - Fund Inst9011 10,712.613.580 0.00RESERVE 10 BABS 0.003,922,140.56 3,932,864.40Subtotal and Balance 10,723.84 10,723.84 0.003,922,140.56 3,932,864.403.625%Issuer Subtotal Issuer: STATE OF CALIFORNIA US Bank STATE OF CALIFORNIA9004 0.001.650 127,505.25OPERATING STATE OF CALIFORNIA9005 1,107.70 0.00PAYROLL STATE OF CALIFORNIA9014 0.00 18,311.82FLEX ACCT 145,817.071,467,010.13 1,322,300.76Subtotal and Balance 1,107.70 Local Agency Investment Fund (LAIF) STATE OF CALIFORNIA9001 5,500,000.003.871 9,500,000.00LAIF 9,500,000.0074,170,691.50 70,170,691.50Subtotal and Balance 5,500,000.00 5,501,107.70 9,645,817.0775,637,701.63 71,492,992.2665.900%Issuer Subtotal Issuer: California Bank & Trust US Bank 29,885.11 29,885.11Subtotal and Balance 0.00 0.0029,885.11 29,885.110.028%Issuer Subtotal Issuer: FIRST AMERICAN US TREASURY Money Market FIRST AMERICAN US TREASURY9016 3,094,765.123.520 0.00OWD TRUST & CUS 0.0069,662.25 3,164,427.37Subtotal and Balance 3,094,765.12 3,094,765.12 0.0069,662.25 3,164,427.372.917%Issuer Subtotal Portfolio OTAY AP Run Date: 04/23/2026 - 16:32 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 March 1, 2026 - March 31, 2026 Activity Report OTAY CUSIP Investment # Issuer Purchases or Deposits Redemptions or Withdrawals Issuer: Federal Agricultural Mortgage Federal Agency Issues - Bullet 1,000,000.00 1,000,000.00Subtotal and Balance 0.00 0.001,000,000.00 1,000,000.000.922%Issuer Subtotal Issuer: Federal Farm Credit Bank Federal Agency Issues - Bullet Federal Farm Credit Bank2420 0.004.625 03/05/2026 1,000,000.003133EP4K8 1,000,000.005,000,000.00 4,000,000.00Subtotal and Balance 0.00 0.00 1,000,000.005,000,000.00 4,000,000.003.687%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 1,000,000.000.922%Issuer Subtotal Issuer: San Diego County San Diego County Pool San Diego County9007 2,250,000.003.890 0.00SD COUNTY POOL 0.0013,616,399.52 15,866,399.52Subtotal and Balance 2,250,000.00 2,250,000.00 0.0013,616,399.52 15,866,399.5214.625%Issuer Subtotal Issuer: US TREASURY Treasury Securities - Coupon US TREASURY2427 0.002.250 03/31/2026 1,000,000.009128286L9 US TREASURY2428 0.002.250 03/31/2026 1,000,000.009128286L9 2,000,000.0010,000,000.00 8,000,000.00Subtotal and Balance 0.00 0.00 2,000,000.0010,000,000.00 8,000,000.007.374%Issuer Subtotal 110,275,789.07 108,486,568.66Total12,645,817.0710,856,596.66100.000% Portfolio OTAY AP Run Date: 04/23/2026 - 16:32 DA (PRF_DA) 7.3.11 Report Ver. 7.3.11 OTAY Duration Report Sorted by Investment Type - Investment Type Through 03/31/2026 Investment #Security ID Issuer Investment Class Book Value Par Value Market Value Current Rate YTM Current Yield Maturity/ Call Date Duration Modified 360Fund US TREASURY242999 1,000,000.00 1,000,800.0091282CHH7 3.715 06/15/2026 0.2051,000,338.04 3.897Fair4.1250000 US TREASURY243099 1,000,000.00 998,630.0091282CLP4 3.770 09/30/2026 0.498997,242.42 4.016Fair3.5000000 US TREASURY243199 1,000,000.00 999,840.0091282CLH2 3.740 08/31/2026 0.416998,849.95 3.977Fair3.7500000 US TREASURY243399 1,000,000.00 988,250.0091282CEF4 3.708 03/31/2027 0.973987,708.05 3.728Fair2.5000000 US TREASURY243499 1,000,000.00 1,001,970.0091282CJT9 3.750 01/15/2027 0.7661,003,072.49 3.546Fair4.0000000 US TREASURY243599 1,000,000.00 999,580.0091282CMY4 3.792 04/30/2027 1.0321,001,731.11 3.547Fair3.7500000 US TREASURY243699 1,000,000.00 985,980.0091282CFB2 3.841 07/31/2027 1.288990,098.27 3.472Fair2.7500000 US TREASURY243899 1,000,000.00 992,310.0091282CPS4 3.836 12/31/2027 1.667996,972.30 3.506Fair3.3750000 Federal Farm Credit Bank242199 1,000,000.00 1,011,480.003133ERDS7 3.676 05/06/2027 1.0431,000,052.27 4.679Fair4.7500000 Federal Farm Credit Bank242399 2,000,000.00 2,005,720.003133ERK42 3.719 12/16/2026 0.6852,000,120.42 4.060Fair4.1250000 Federal Home Loan Bank243299 1,000,000.00 982,250.003130AQF65 3.766 12/21/2026 0.706981,283.04 3.886Fair1.2500000 Federal Farm Credit Bank243799 1,000,000.00 994,580.003133ET3G0 3.837 12/09/2027 1.606998,224.20 3.560Fair3.5000000 Federal Agricultural Mortgage243999 1,000,000.00 996,440.0031428JAB3 3.832 01/26/2028 1.7331,002,142.96 3.453Fair3.6250000 Blackrock T - Fund Inst901099 4,117.82 4,117.82RESERVE-10A 3.580 0.0004,117.82 3.531Amort3.5800000 Blackrock T - Fund Inst901199 3,928,746.58 3,928,746.58RESERVE 10 3.580 0.0003,928,746.58 3.531Amort3.5800000 FIRST AMERICAN US 9016 99 3,164,427.37 3,164,427.37OWD TRUST & 3.520 0.0003,164,427.37 3.472Amort3.5200000 STATE OF CALIFORNIA900199 70,170,691.50 70,169,346.40LAIF 3.871 0.00070,170,691.50 3.818Fair3.8710000 San Diego County900799 15,866,399.52 15,936,000.00SD COUNTY 3.890 0.00015,866,399.52 3.837Fair3.8900000 3.839 0.123107,092,218.31 107,134,382.79 107,160,468.17Report Total Portfolio OTAY AP Page 1Run Date: 04/23/2026 - 16:06 DU (PRF_DU) 7.3.11 Report Ver. 7.3.11 OTAY GASB 31 Compliance Detail Sorted by Fund - Fund March 1, 2026 - March 31, 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 982,260.00Fair Value 12/21/2026 -10.0099 982,250.003130AQF650.00 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 1,411,394.59Amortized 0.0099 1,283,889.34OPERATING0.00 0.00 127,505.25 0.00 9001 74,332,493.60Fair Value -163,147.2099 70,169,346.40LAIF0.00 5,500,000.00 9,500,000.00 0.00 9014 45,369.85Amortized 0.0099 27,058.03FLEX ACCT 0.00 0.00 18,311.82 0.00 9005 7,145.69Amortized 0.0099 8,253.39PAYROLL0.00 1,107.70 0.00 0.00 2421 1,014,400.00Fair Value 05/06/2027 -2,920.0099 1,011,480.003133ERDS70.00 0.00 0.00 0.00 2420 1,000,070.00Fair Value 03/05/2026 -70.0099 0.003133EP4K80.00 0.00 1,000,000.00 0.00 2423 2,008,720.00Fair Value 12/16/2026 -3,000.0099 2,005,720.003133ERK420.00 0.00 0.00 0.00 2437 1,000,830.00Fair Value 12/09/2027 -6,250.0099 994,580.003133ET3G00.00 0.00 0.00 0.00 9017 29,885.11Amortized 0.0099 29,885.11GRANT FUNDS 0.00 0.00 0.00 0.00 2431 1,000,370.00Fair Value 08/31/2026 -530.0099 999,840.0091282CLH20.00 0.00 0.00 0.00 2433 989,450.00Fair Value 03/31/2027 -1,200.0099 988,250.0091282CEF40.00 0.00 0.00 0.00 2434 1,003,870.00Fair Value 01/15/2027 -1,900.0099 1,001,970.0091282CJT90.00 0.00 0.00 0.00 2430 999,110.00Fair Value 09/30/2026 -480.0099 998,630.0091282CLP40.00 0.00 0.00 0.00 2438 999,450.00Fair Value 12/31/2027 -7,140.0099 992,310.0091282CPS40.00 0.00 0.00 0.00 2429 1,001,330.00Fair Value 06/15/2026 -530.0099 1,000,800.0091282CHH70.00 0.00 0.00 0.00 2436 990,390.00Fair Value 07/31/2027 -4,410.0099 985,980.0091282CFB20.00 0.00 0.00 0.00 2435 1,002,890.00Fair Value 04/30/2027 -3,310.0099 999,580.0091282CMY40.00 0.00 0.00 0.00 2428 998,810.00Fair Value 03/31/2026 1,190.0099 0.009128286L90.00 0.00 1,000,000.00 0.00 2427 998,810.00Fair Value 03/31/2026 1,190.0099 0.009128286L90.00 0.00 1,000,000.00 0.00 9007 13,734,000.00Fair Value -48,000.0099 15,936,000.00SD COUNTY POOL 0.00 2,250,000.00 0.00 0.00 2439 1,003,190.00Fair Value 01/26/2028 -6,750.0099 996,440.0031428JAB30.00 0.00 0.00 0.00 9016 69,662.25Amortized 0.0099 3,164,427.37OWD TRUST & CUS 0.00 3,094,765.12 0.00 0.00 9010 4,106.59Amortized 0.0099 4,117.82RESERVE-10A WRB 0.00 11.23 0.00 0.00 9011 3,918,033.97Amortized 0.0099 3,928,746.58RESERVE 10 BABS 0.00 10,712.61 0.00 0.00 110,549,141.65Subtotal -247,267.20 108,512,654.040.00 10,856,596.66 12,645,817.07 0.00 110,549,141.65Total 108,512,654.04-247,267.200.00 10,856,596.66 12,645,817.07 0.00 Portfolio OTAY AP Run Date: 04/23/2026 - 16:34 GD (PRF_GD) 7.3.11 Report Ver. 7.3.11 OTAY Interest Earnings Sorted by Fund - Fund March 1, 2026 - March 31, 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 YieldCUSIPInvestment # Interest Earned Fund: Treasury Fund 981,283.0424321,000,000.00 1.250FAC12/21/2026 1,041.66 2,159.65 3,201.313.85099979,123.393130AQF65 3,100.0090033,100.00PA1 0.00 0.00 0.00993,100.00PETTY CASH 1,283,889.3490041,283,889.34 1.650PA1 1,972.13 0.00 1,972.131.645991,411,394.59OPERATING 70,170,691.50900170,170,691.50 3.871LA1 231,601.55 0.00 231,601.553.6779974,170,691.50LAIF 27,058.03901427,058.03PA1 0.00 0.00 0.009945,369.85FLEX ACCT 8,253.3990058,253.39PA1 0.00 0.00 0.00997,145.69PAYROLL 1,000,052.2724211,000,000.00 4.750FAC05/06/2027 3,958.33 -3.97 3,954.364.656991,000,056.243133ERDS7 0.0024200.00 4.625FAC03/05/2026 513.89 39.60 553.495.05199999,960.403133EP4K8 2,000,120.4224232,000,000.00 4.125FAC12/16/2026 6,875.00 -14.16 6,860.844.039992,000,134.583133ERK42 998,224.2024371,000,000.00 3.500FAC12/09/2027 2,916.67 87.62 3,004.293.54499998,136.583133ET3G0 29,885.11901729,885.11PA1 0.00 0.00 0.009929,885.11GRANT FUNDS 998,849.9524311,000,000.00 3.750TRC08/31/2026 3,158.97 234.56 3,393.534.00199998,615.3991282CLH2 987,708.0524331,000,000.00 2.500TRC03/31/2027 2,128.75 1,046.84 3,175.593.79099986,661.2191282CEF4 1,003,072.4924341,000,000.00 4.000TRC01/15/2027 3,425.41 -329.57 3,095.843.633991,003,402.0691282CJT9 997,242.4224301,000,000.00 3.500TRC09/30/2026 2,980.25 469.69 3,449.944.07599996,772.7391282CLP4 996,972.3024381,000,000.00 3.375TRC12/31/2027 2,890.20 146.88 3,037.083.58799996,825.4291282CPS4 1,000,338.0424291,000,000.00 4.125TRC06/15/2026 3,513.05 -139.72 3,373.333.970991,000,477.7691282CHH7 990,098.2724361,000,000.00 2.750TRC07/31/2027 2,354.97 631.59 2,986.563.55499989,466.6891282CFB2 1,001,731.1124351,000,000.00 3.750TRC04/30/2027 3,211.33 -136.20 3,075.133.614991,001,867.3191282CMY4 0.0024280.00 2.250TRC03/31/2026 1,854.40 1,467.23 3,321.634.04799998,532.779128286L9 0.0024270.00 2.250TRC03/31/2026 1,854.40 1,551.55 3,405.954.15099998,448.459128286L9 15,866,399.52900715,866,399.52 3.890LA3 51,812.50 0.00 51,812.504.4809913,616,399.52SD COUNTY POOL 1,002,142.9624391,000,000.00 3.625FAC01/26/2028 3,020.83 -98.15 2,922.683.434991,002,241.1131428JAB3 3,164,427.3790163,164,427.37 3.520PA2 507.81 0.00 507.818.5839969,662.25OWD TRUST & CUS 4,117.8290104,117.82 3.580PA2 12.52 0.00 12.523.590994,106.59RESERVE-10A WRB 3,928,746.5890113,928,746.58 3.580PA2 11,944.49 0.00 11,944.493.589993,918,033.97RESERVE 10 BABS 108,486,568.66Subtotal 108,444,404.18 3.807 350,662.557,113.44343,549.11110,226,511.15 108,486,568.66Total 108,444,404.18 3.807 350,662.557,113.44343,549.11110,226,511.15 Portfolio OTAY AP Run Date: 04/23/2026 - 16:35 IE (PRF_IE) 7.3.11 Report Ver. 7.3.11 Check Num Check Amt Invoice Description Invoice Total Check Dt Vendor Num Invoice Num 2065531 663.56 FY26 ELEVATOR GENERAL MAINT 663.56 3/25/2026 15416 211407 2065620 663.56 FY26 ELEVATOR GENERAL MAINT 663.56 4/15/2026 15416 213499 2065555 9,765.85 CLIMATE ADAPTATION/RESILIENCE 9,765.85 4/1/2026 22463 20260021 2065591 675.00 FY26 SHAREPOINT & INTRANET SUPP 675.00 4/8/2026 8488 13598 2065556 1,353.09 INTERNET CIRCUITS 1,353.09 4/1/2026 18122 3494063113 AS-NEEDED AQUA AMMONIA DELIVERY 498.07 4/1/2026 7732 9170192156 AS-NEEDED AQUA AMMONIA DELIVERY 902.48 4/1/2026 7732 9170192164 2065559 28,965.31 RETENTION/PACIFIC HYDROTECH 28,965.31 4/1/2026 22643 1502282026 CY2026 BILLING ADMINISTRATION 241.80 4/22/2026 22138 975302 CY2026 BILLING ADMINISTRATION 323.20 4/22/2026 22138 972980 2065560 17,465.79 3" AND 4" OMNI C2 MMP AND 3"-4 16,217.13 4/1/2026 3492 0113111 2065561 21,691.58 PROF SERV - FEB 2026 21,691.58 4/1/2026 17264 310978 2065621 83,606.66 FY26 WC PROGRAM (QTR 3)83,606.66 4/15/2026 20199 WC 2026 QTR 3 2065670 960.00 EXCESS CRIME INSURANCE ANNUAL 960.00 4/22/2026 20199 000001250 2065622 3,872.08 TELEPHONE SERVICES 3,872.08 4/15/2026 7785 000024929437 2065623 9,103.10 FY26 JANITORIAL SERVICES 9,103.10 4/15/2026 20125 J2293 2065624 50,321.74 METER CHANGEOUT AMI PROJECT 52,970.24 4/15/2026 586 1794305 2065671 2,965.57 OR V2 NR-12 ENCLAVE 2,965.57 4/22/2026 12684 041426 AS-NEEDED SODIUM HYPOCHLORITE 148.09 4/1/2026 30350 BPI588597 AS-NEEDED SODIUM HYPOCHLORITE 370.22 4/1/2026 30350 BPI588599 AS-NEEDED SODIUM HYPOCHLORITE 438.34 4/1/2026 30350 BPI589557 AS-NEEDED SODIUM HYPOCHLORITE 562.73 4/1/2026 30350 BPI589559 AS-NEEDED SODIUM HYPOCHLORITE 666.40 4/1/2026 30350 BPI588598 AS-NEEDED SODIUM HYPOCHLORITE 2,316.10 4/1/2026 30350 BPI589558 AS-NEEDED SODIUM HYPOCHLORITE 4,886.90 4/1/2026 30350 BPI588272 AS-NEEDED SODIUM HYPOCHLORITE 8,885.28 4/1/2026 30350 BPI589556 AS-NEEDED SODIUM HYPOCHLORITE 660.47 4/15/2026 30350 BPI592106 AS-NEEDED SODIUM HYPOCHLORITE 1,184.70 4/15/2026 30350 BPI592107 AS-NEEDED SODIUM HYPOCHLORITE 1,480.88 4/15/2026 30350 BPI592109 AS-NEEDED SODIUM HYPOCHLORITE 1,865.91 4/15/2026 30350 BPI592108 3/26/2026 3/26/2026 BALDWIN & SONS LLC 4/14/2026 BRENNTAG PACIFIC INC 2065562 18,274.06 3/12/2026 3/12/2026 3/19/2026 3/19/2026 3/12/2026 3/19/2026 3/12/2026 3/18/2026 2065625 19,772.70 3/26/2026 3/26/2026 AT&T 3/12/2026 AZTEC LANDSCAPING INC 3/31/2026 BADGER METER INC 3/23/2026 AQUA-METRIC SALES COMPANY 3/12/2026 ARTIANO SHINOFF ABED 3/12/2026 ASSOC OF CA WATER AGENCIES 3/30/2026 4/1/2026 AMERICAN BUSINESS BANK 3/5/2026 AMERIFLEX 2065669 565.00 4/8/2026 4/8/2026 AIRGAS SPECIALTY PRODUCTS INC 2065557 1,400.55 3/16/2026 3/16/2026 AARC CONSULTANTS LLC 3/6/2026 ABLEFORCE INC 4/2/2026 ACC BUSINESS 3/11/2026 Check Register Check Dates: 3/19/2026 thru 4/22/2026 payee Invoice Date 24 HOUR ELEVATOR INC 3/1/2026 4/1/2026 4/28/2026 1:46:05 PM Page 1 Check Register Check Dates: 3/19/2026 thru 4/22/2026 AS-NEEDED SODIUM HYPOCHLORITE 2,961.76 4/15/2026 30350 BPI592110 AS-NEEDED SODIUM HYPOCHLORITE 5,103.11 4/15/2026 30350 BPI592600 AS-NEEDED SODIUM HYPOCHLORITE 6,515.87 4/15/2026 30350 BPI592111 AS-NEEDED SODIUM HYPOCHLORITE 296.18 4/22/2026 30350 BPI593543 AS-NEEDED SODIUM HYPOCHLORITE 592.35 4/22/2026 30350 BPI593542 AS-NEEDED SODIUM HYPOCHLORITE 2,369.41 4/22/2026 30350 BPI593544 AS-NEEDED SODIUM HYPOCHLORITE 3,850.29 4/22/2026 30350 BPI593545 2065626 399.19 ARMORED TRANSPORTATION SERV 399.19 4/15/2026 21775 13162328 2065627 4,815.50 HR/LEGAL CONSULTING SERV 4,815.50 4/15/2026 3005 363931 2065563 811.90 ACA REPORTING SERVICES 811.90 4/1/2026 18154 146598 2065548 103.05 UB REFUND 0000238845 103.05 3/25/2026 99999 UB REF032626003 UTILITY LOCATING SERVICES 4,620.00 4/15/2026 20374 CAL2542 UTILITY LOCATING SERVICES 7,075.00 4/15/2026 20374 CAL2543 2065532 14,533.37 EMERGENCY 12 IN REPAIR JAMUL 14,533.37 3/25/2026 848 R2944-00001 2065564 6,825.48 FZ-G2 TABLETS AND HAND STRAPS 6,338.00 4/1/2026 21414 144393 2065629 7,152.62 ALTA RD SIEMPRE VIVA RD 7,152.62 4/15/2026 30594 040826 2065592 2,275.00 VIBRATION TESTING 2,275.00 4/8/2026 22272 102827-03 2065686 101.75 UB REFUND 0000286910 101.75 4/22/2026 99999 ubRef042326003 2065687 46.77 UB REFUND 0000277387 46.77 4/22/2026 99999 ubRef042326002 2065673 2,081.74 OTAY RANCH VILLAGE 11 ELEM SCH 2,081.74 4/22/2026 2026 041426 BACTERIOLOGICAL TESTING 460.00 4/15/2026 4119 44284 BACTERIOLOGICAL TESTING 460.00 4/15/2026 4119 44287 BACTERIOLOGICAL TESTING 460.00 4/15/2026 4119 44288 BACTERIOLOGICAL TESTING 750.00 4/15/2026 4119 44285 BACTERIOLOGICAL TESTING 990.00 4/15/2026 4119 44286 2065631 540.75 FY26 DATA SERVICES - REALQUEST 540.75 4/15/2026 15049 82296790 2065533 404.39 COUNTY EXCAVATION PERMITS 404.39 3/25/2026 99 DPWAROTAYM WD0126 UPFP PERMIT RENEWAL 708.00 3/25/2026 184 2818021426 UPFP PERMIT RENEWAL 1,265.00 3/25/2026 184 5731021426 PERMIT FEES 753.00 4/8/2026 2122 045442002RI202 6 CORELOGIC SOLUTIONS LLC 3/31/2026 COUNTY OF SAN DIEGO 2/26/2026 2065534 1,973.00 2/14/2026 2/14/2026 2065593 1,506.00 3/23/2026 CHULA VISTA ELEM SCHOOL DIST 4/14/2026 CLARKSON LAB & SUPPLY INC 2065630 3,120.00 3/31/2026 3/31/2026 3/31/2026 3/31/2026 3/31/2026 CHA CONSULTING INC 3/17/2026 CHING MING CHEN 4/21/2026 CHRIS SMITH 4/21/2026 CASS CONSTRUCTION INC 12/31/2025 CDCE INCORPORATED 3/17/2026 CH REALTY X-ELC 4/8/2026 3/26/2026 3/30/2026 CAH 2015-1 BORROWER LLC 3/24/2026 CALBURTON INC 2065628 11,695.00 3/13/2026 3/13/2026 BRINKS INC 4/1/2026 BURKE WILLIAMS & SORENSEN LLP 3/30/2026 BUSINESSOLVER.COM INC 3/18/2026 3/26/2026 2065672 7,108.23 4/2/2026 4/2/2026 4/2/2026 4/2/2026 4/28/2026 1:46:05 PM Page 2 Check Register Check Dates: 3/19/2026 thru 4/22/2026 PERMIT FEES 753.00 4/8/2026 2122 047452002RI202 6 DEVELOPER INSPECTION 300.00 4/15/2026 184 2003193E632100 326 DEVELOPER INSPECTION 300.00 4/15/2026 184 2003193E642180 326 DEVELOPER INSPECTION 450.00 4/15/2026 184 2003193E643390 326 DEVELOPER INSPECTION 600.00 4/15/2026 184 2003193E642850 326 DEVELOPER INSPECTION 600.00 4/15/2026 184 2003193E643360 326 DEVELOPER INSPECTION 750.00 4/15/2026 184 2003193E602480 326 DEVELOPER INSPECTION 750.00 4/15/2026 184 2003193E634510 326 DEVELOPER INSPECTION 1,800.00 4/15/2026 184 2003193E602340 326 DEVELOPER INSPECTION 1,950.00 4/15/2026 184 2003193E639050 326 2065674 179,183.50 O & M AND CAPITAL REPLACEMENT 179,183.50 4/22/2026 99 FY24-25OWD 2065675 615.00 UPFP PERMIT RENEWAL 615.00 4/22/2026 184 2139031726 2065594 20,433.90 CUSTOMER REFUND 20,433.90 4/8/2026 30593 3400040726 2065606 1,595.35 UB REFUND 0000298759 1,595.35 4/8/2026 99999 ubRef040926005 2065558 268.04 EXPENSE REIMBURSEMENT 268.04 4/1/2026 6261 033026 2065535 63.80 MILEAGE REIMBURSEMENT - FEB 2026 63.80 3/25/2026 30035 020126022826 2065633 263.18 MILEAGE REIMBURSEMENT - MAR 2026 263.18 4/15/2026 30035 030126033126 2065538 197.00 TRAVEL ADVANCE 197.00 3/25/2026 17024 032426 2065576 1,610.71 EXPENSE REIMBURSEMENT 1,610.71 4/1/2026 7591 033026 PROJECT MANAGEMENT SERVICES 25,730.30 4/1/2026 21597 25907 PROJECT MANAGEMENT SERVICES 31,871.75 4/1/2026 21597 26002 2065676 40,632.31 PROJECT MANAGEMENT SERVICES 40,632.31 4/22/2026 21597 26209 2065634 177.48 CUSTOMER REFUND 177.48 4/15/2026 21758 7542040926 2065595 284.68 RECYCLED WASTE SERVICE 284.68 4/8/2026 2447 5458 033126 2065607 59.95 UB REFUND 0000305660 59.95 4/8/2026 99999 ubRef040926011 2065566 7,438.00 ELECTRICAL ENGINEERING 7,438.00 4/1/2026 3765 14120A86182ENGINEERING PARTNERS INC 11/30/2025 EASTLAKE PROPERTIES LLC 4/9/2026 EDCO DISPOSAL CORPORATION 3/31/2026 EMILY BAWDEN 4/8/2026 DIANNE GUIRIBA 3/24/2026 DONGXING MA 3/30/2026 E SOURCE COMPANIES LLC 2065565 57,602.05 3/30/2026 3/11/2026 3/31/2026 CYNTHIA ALCANTARA 3/30/2026 DELFINA GONZALEZ 2/28/2026 3/31/2026 4/3/2026 3/17/2026 CR SILO NORTH LLC 4/7/2026 CRP/CWC MILLENIA 4/8/2026 3/23/2026 2065632 7,500.00 4/1/2026 4/1/2026 4/1/2026 4/1/2026 4/1/2026 4/1/2026 4/1/2026 4/1/2026 4/1/2026 4/28/2026 1:46:05 PM Page 3 Check Register Check Dates: 3/19/2026 thru 4/22/2026 2065567 6,570.59 ENVIRONMENTAL SERVICES 6,570.59 4/1/2026 22412 217156 2065688 16.80 UB REFUND 0000026396 16.80 4/22/2026 99999 ubRef042326001 VISION BENEFITS ADMINISTRATION 37.38 4/15/2026 20511 167258933 VISION BENEFITS ADMINISTRATION 1,480.74 4/15/2026 20511 167265114 INVENTORY 4,052.60 4/1/2026 3546 0901940 INVENTORY 4,659.30 4/1/2026 3546 0902666 INVENTORY 1,728.80 4/15/2026 3546 0902109-1 INVENTORY 2,100.00 4/15/2026 3546 0901941 INVENTORY 2,374.95 4/15/2026 3546 0902109 INVENTORY 5,758.20 4/15/2026 3546 0903539 INVENTORY 5,758.20 4/15/2026 3546 0904303 INVENTORY 7,716.00 4/15/2026 3546 0903537 2065637 99.00 DOCUMENT SERVICE FY 2026 99.00 4/15/2026 17888 9003400326 FY26 GYM EQUIPMENT MAINTENANCE 150.00 4/15/2026 2591 13210 FY26 GYM EQUIPMENT MAINTENANCE 353.40 4/15/2026 2591 13220 FY26 GYM EQUIPMENT MAINTENANCE 2,599.00 4/15/2026 2591 13223 2065536 432.53 BI-WEEKLY PAYROLL DEDUCTION 432.53 3/25/2026 22973 10174 2065596 60.00 BI-WEEKLY PAYROLL DEDUCTION 60.00 4/8/2026 22973 10251 2065677 60.00 BI-WEEKLY PAYROLL DEDUCTION 60.00 4/22/2026 22973 10767 EXPENSE REIMBURSEMENT 3.63 3/25/2026 22628 010126013126 EXPENSE REIMBURSEMENT 28.00 3/25/2026 22628 022526 EXPENSE REIMBURSEMENT 58.73 3/25/2026 22628 020126022826 2065639 23.20 MILEAGE REIMBURSEMENT - MAR 2026 23.20 4/15/2026 22628 030126033126 2065640 449.03 AS-NEEDED FLEET WASH SVC 449.03 4/15/2026 30368 FC3603456 2065597 3,274.84 MICROSOFT 365 LIC 3,274.84 4/8/2026 30185 R1071SA-12 2065641 105.86 CUSTOMER REFUND 105.86 4/15/2026 30591 2896040926 2065569 7,440.15 APA 6000 ANALYZER 6,905.00 4/1/2026 174 14906459 2065608 1,419.99 UB REFUND 0000298663 1,419.99 4/8/2026 99999 ubRef040926004 2065570 1,000.00 REVIEW & FILING OF DISCLOSURE 1,000.00 4/1/2026 3668 10183 ENVIRONMENTAL SERVICES 4,234.08 3/25/2026 2008 132742 ENVIRONMENTAL SERVICES 6,534.81 3/25/2026 2008 132748 2065571 1,455.09 CUST WATER CONSUMPTION DATA 1,455.09 4/1/2026 62 5118 WATER USAGE AT RUSSELL SQUARE 76.63 4/22/2026 62 4330040926 HELIX WATER DISTRICT 3/11/2026 2065678 160.69 4/9/2026 HELIX ENVIRONMENTAL 2065539 10,768.89 3/1/2026 3/1/2026 HACH COMPANY 3/9/2026 HAMANN CONSTRUCTION 4/8/2026 HARRELL & COMPANY ADVISORS LLC 3/23/2026 FW FLEET CLEAN LLC 3/27/2026 GIGAKOM 3/31/2026 GRACE ANN SANTOS 4/9/2026 FRANCHISE TAX BOARD 3/26/2026 4/9/2026 4/23/2026 FRANCISCO RIVERA 2065537 90.36 1/31/2026 2/25/2026 2/28/2026 3/31/2026 FIRST AMERICAN DATA TREE LLC 3/31/2026 FITNESS TECH 2065638 3,102.40 4/1/2026 4/1/2026 4/6/2026 FERGUSON WATERWORKS # 1083 2065568 9,387.08 3/10/2026 3/12/2026 2065636 27,407.45 4/1/2026 3/21/2026 3/25/2026 3/26/2026 3/27/2026 3/30/2026 EYEMED (FIDELITY)2065635 1,518.12 3/20/2026 3/20/2026 ENVIRONMENTAL SCIENCE ASSOC 3/13/2026 ERIC MENDOZA 4/21/2026 4/28/2026 1:46:05 PM Page 4 Check Register Check Dates: 3/19/2026 thru 4/22/2026 WATER USAGE AT AVOCADO 84.06 4/22/2026 62 542834926 2065642 4,200.00 TREE REMOVAL 4,200.00 4/15/2026 9710 M4222 2065643 950.00 LAND SURVEYING (1/1/26-2/27/28)950.00 4/15/2026 13349 2026020068 BILL PROCESSING SERVICES FY26 3,013.84 4/15/2026 8969 306288 BILL PROCESSING SERVICES FY26 4,788.02 4/15/2026 8969 307380 BILL PROCESSING SERVICES FY26 16,842.12 4/15/2026 8969 307381 2065645 11,811.32 CRADLEPOINT NET CLOUD 11,811.32 4/15/2026 3380 1101372315 2065598 2,473.00 ANTENNA SUBLEASE 2,473.00 4/8/2026 20752 415018771 2065646 1,257.77 CUSTOMER REFUND 1,257.77 4/15/2026 30590 6703040926 2065572 4,700.00 CHLORINE GAS 4,700.00 4/1/2026 10563 990986 2065647 7,050.00 CHLORINE GAS 7,050.00 4/15/2026 10563 993049 2065648 155.00 EXPENSE REIMBURSEMENT 155.00 4/15/2026 14323 041426 2065540 88.45 MILEAGE REIMBURSEMENT - FEB 2026 88.45 3/25/2026 3019 020126022826 2065573 144.85 MILEAGE REIMBURSEMENT - MAR 2026 144.85 4/1/2026 1794 032626 2065689 87.77 UB REFUND 0000301889 87.77 4/22/2026 99999 ubRef042326005 2065599 1,201.33 AS NEEDED PAVING RETENTION 1,201.33 4/8/2026 5840 25-119-8R 2065574 41,151.08 520 PRESSURE ZONE MIXERS 38,216.00 4/1/2026 2823 00000921 2065609 38.37 UB REFUND 0000233970 38.37 4/8/2026 99999 ubRef040926001 VIBE AT MILLENIA 103.46 4/22/2026 19654 041426 OR V8 WEST - LOT Q 3,572.77 4/22/2026 19654 041426 D1065 2065549 92.28 UB REFUND 0000275743 92.28 3/25/2026 99999 UB REF032626004 2065681 13,042.63 CY26 LIFE & STD/LTD INSURANCE 13,042.63 4/22/2026 30442 221238 020126 2065575 9,168.45 FABRICATE STEEL PIPE 8,509.00 4/1/2026 30186 12715 2065682 5,980.25 FABRICATE STEEL PIPE 5,550.12 4/22/2026 30186 12716 2065690 26.64 UB REFUND 0000304752 26.64 4/22/2026 99999 ubRef042326006 TUITION REIMBURSEMENT 325.05 4/8/2026 19966 LZ040326 TUITION REIMBURSEMENT 330.00 4/8/2026 19966 LZ040226 2065550 158.82 UB REFUND 0000021748 158.82 3/25/2026 99999 UB REF032626001 2065610 1,623.86 UB REFUND 0000301797 1,623.86 4/8/2026 99999 ubRef040926009 LUTCHKO FAMILY TRUST 3/24/2026 MA STEVENS CONSTRUCTION 4/8/2026 LOREN JENKINS 4/21/2026 LUIS ZAVALA 2065600 655.05 4/3/2026 4/2/2026 LENNAR HOMES OF CALIFORNIA INC 3/24/2026 LIFE INS COMPANY OF NORTH AMERICA 3/6/2026 LIVIN METAL INC 3/10/2026 4/8/2026 LENNAR 2065680 3,676.23 4/14/2026 4/14/2026 KIRK PAVING INC 2/11/2026 KOMAX SYSTEMS INC 3/18/2026 LAWRENCE GRAY 4/8/2026 JOSE LOPEZ 2/28/2026 JOSEPH BEACHEM 3/26/2026 JUAN ROMAN GANTE 4/21/2026 JCI JONES CHEMICALS INC 3/6/2026 4/2/2026 JEFFREY EDWARDS 4/14/2026 INSIGHT PUBLIC SECTOR INC 3/23/2026 IWG TOWERS ASSETS II LLC 4/1/2026 JAY JOHNSON 4/9/2026 HOMESTEAD TREE SERVICE INC 2/9/2026 HUNSAKER & ASSOCIATES 3/24/2026 INFOSEND INC 2065644 24,643.98 3/11/2026 3/31/2026 3/31/2026 4/9/2026 4/28/2026 1:46:05 PM Page 5 Check Register Check Dates: 3/19/2026 thru 4/22/2026 2065691 150.00 UB REFUND 0000301547 150.00 4/22/2026 99999 ubRef042326004 MILEAGE REIMBURSEMENT 43.50 3/25/2026 4542 010126013126 MILEAGE REIMBURSEMENT 58.00 3/25/2026 4542 020126022826 MILEAGE REIMBURSEMENT 110.04 3/25/2026 4542 010126022826 2065611 23.31 UB REFUND 0000300809 23.31 4/8/2026 99999 ubRef040926008 2065543 19.00 ADMIN LANDSCAPE UPGRADE 20.00 3/25/2026 21723 033126 2065577 869.00 IRRIGATION REPAIRS NW SLOPE 869.00 4/1/2026 21723 11682 2065649 945.00 ADMIN LANDSCAPE UPGRADE 945.00 4/15/2026 21723 11692 2065650 668.58 STRATA PARK 668.58 4/15/2026 22566 040826 2065612 730.76 UB REFUND 0000291543 730.76 4/8/2026 99999 ubRef040926003 2065578 169.32 WITHHOLDING TAX 169.32 4/1/2026 20996 033126 DESIGN RSD/JAMUL PL REPLACEMENT 420.00 4/1/2026 18332 502414 DESIGN RSD/JAMUL PL REPLACEMENT 9,002.50 4/1/2026 18332 504161 2065651 747.41 REIMBURSE OWDEA FOR MISC OWD 747.41 4/15/2026 3101 10200 2065580 550,340.80 870-2 RES 3.4 MG & 8701 RES 550,340.80 4/1/2026 6646 1502282026 2065581 2,325.44 INVENTORY 2,158.18 4/1/2026 1002 S100484912.003 2065652 2,325.44 INVENTORY 2,158.18 4/15/2026 1002 S100485684.001 2065653 5,598.30 VIBRATION PILOT PROJECT 5,198.40 4/15/2026 30478 I2601-016 2065582 1,330.80 PETTY CASH REIMBURSEMENT 1,330.80 4/1/2026 137 032626 2065654 7,398.00 VEEAM DATA CLOUD 7,398.00 4/15/2026 13122 44557 2065655 1,608.75 AS NEEDED ASSET MGMT 1,608.75 4/15/2026 20861 44505 RANDOM DRUG TESTING 55.00 4/15/2026 22238 14399 RANDOM DRUG TESTING 255.00 4/15/2026 22238 14393 2065583 663.84 FY26 AS-NEEDED SAFETY BOOTS 663.84 4/1/2026 19836 20260310069504 2065683 13,000.00 CALARP 3 YEAR COMPLIANCE AUDIT 13,000.00 4/22/2026 30527 6757 2065613 85.30 UB REFUND 0000300548 85.30 4/8/2026 99999 ubRef040926007 AS-NEEDED TEMP STAFF 349.20 4/1/2026 30396 16376017 AS-NEEDED TEMP STAFF 1,871.20 4/1/2026 30396 16373748 AS-NEEDED TEMP STAFF 1,871.20 4/1/2026 30396 16376016 ROTH STAFFING COMPANIES LP 2065584 4,091.60 3/13/2026 3/6/2026 3/13/2026 RED WING BUSINESS ADV ACCOUNT 3/10/2026 RESOURCE COMPLIANCE INC.3/30/2026 ROBERT RENNER 4/8/2026 RAFTELIS 2/17/2026 RCDA LLC 2065656 310.00 3/25/2026 3/24/2026 PATTEN SYSTEMS INC 1/16/2026 PETTY CASH CUSTODIAN 3/26/2026 PINNACLE BUSINESS SOLUTIONS 3/25/2026 OTAY WATER DISTRICT 4/1/2026 PACIFIC HYDROTECH CORPORATION 3/5/2026 PACIFIC PIPELINE SUPPLY INC 3/12/2026 3/26/2026 NV5 INC 2065579 9,422.50 3/6/2026 3/6/2026 MILLENIA 2022 LLC 4/8/2026 NATON ENGINEERING INC 4/8/2026 NORTH CAROLINA DEPT OF REVENUE 3/31/2026 MATTHEW SPRINGMEYER 4/8/2026 MERINO LANDSCAPE INC 3/31/2026 3/17/2026 3/31/2026 MARK ROBAK 2065542 211.54 1/31/2026 2/28/2026 2/28/2026 MARIA CORTEZ GONZALEZ 4/21/2026 4/28/2026 1:46:05 PM Page 6 Check Register Check Dates: 3/19/2026 thru 4/22/2026 AS-NEEDED TEMP STAFF 1,871.20 4/15/2026 30396 16378300 AS-NEEDED TEMP STAFF 1,871.20 4/15/2026 30396 16380592 AS-NEEDED TEMP STAFF 3,990.80 4/15/2026 30396 16378301 AS-NEEDED TEMP STAFF 3,990.80 4/15/2026 30396 16380593 2065601 9,110.25 INVEST ADV FOR DEFFERED COMP 9,110.25 4/8/2026 19377 2026-13556 2065602 125.00 FY26 MONTHLY ASSESSOR DATA 125.00 4/8/2026 2586 202600276 2065658 594.00 SOCAL WATERSMART HEW HET WBIC 594.00 4/15/2026 3 3039 UTILITY EXPENSES - MONTHLY 16,244.44 4/1/2026 121 032326 UTILITY EXPENSES - MONTHLY 26,801.70 4/1/2026 121 031326 UTILITY EXPENSES - MONTHLY 934.79 4/8/2026 121 032726 UTILITY EXPENSES - MONTHLY 1,442.64 4/8/2026 121 040126 UTILITY EXPENSES - MONTHLY 2,487.09 4/8/2026 121 031726 UTILITY EXPENSES - MONTHLY 14,027.01 4/8/2026 121 033026 UTILITY EXPENSES - MONTHLY 50,729.53 4/8/2026 121 033126 UTILITY EXPENSES - MONTHLY 55,607.94 4/8/2026 121 032526 UTILITY EXPENSES - MONTHLY 85,809.90 4/8/2026 121 033126A UTILITY EXPENSES - MONTHLY 112.89 4/15/2026 121 040626 UTILITY EXPENSES - MONTHLY 3,501.76 4/15/2026 121 040926 UTILITY EXPENSES - MONTHLY 136,357.20 4/15/2026 121 040826 2065586 1,010.49 OTHER AGENCY FEES 1,010.49 4/1/2026 5512 SD100372526 2065660 280.00 ON-DEMAND SECURITY RESPONSE 280.00 4/15/2026 19603 12519117 2065551 30.11 UB REFUND 0000305386 30.11 3/25/2026 99999 UB REF032626005 2065614 571.20 UB REFUND 0000273938 571.20 4/8/2026 99999 ubRef040926002 2065544 439.00 EXPENSE REIMBURSEMENT 439.00 3/25/2026 20598 031826 2065545 553.85 BI-WEEKLY PAYROLL DEDUCTION 553.85 3/25/2026 21115 10172 2065604 553.85 BI-WEEKLY PAYROLL DEDUCTION 553.85 4/8/2026 21115 10249 2065684 553.85 BI-WEEKLY PAYROLL DEDUCTION 553.85 4/22/2026 21115 10765 HVAC PREVENTIVE MAINT SERV 160.00 4/22/2026 15176 1479357 HVAC PREVENTIVE MAINT SERV 160.00 4/22/2026 15176 1479362 HVAC PREVENTIVE MAINT SERV 160.00 4/22/2026 15176 1479363 HVAC PREVENTIVE MAINT SERV 235.00 4/22/2026 15176 1479356 HVAC PREVENTIVE MAINT SERV 1,127.00 4/22/2026 15176 1479361 SOUTHCOAST HEATING & AIR 2065685 1,842.00 4/15/2026 4/15/2026 4/15/2026 4/15/2026 4/15/2026 SHIELA DILAYRE 3/18/2026 SONIA PONCE 3/26/2026 4/9/2026 4/23/2026 SECURITAS SECURITY SVC USA INC 4/2/2026 SHAWN PIRTLE 3/24/2026 SHEA HOMES 4/8/2026 4/6/2026 4/9/2026 4/8/2026 SD COUNTY VECTOR CONTROL PROG 1/16/2026 SAN DIEGO GAS & ELECTRIC 2065585 43,046.14 3/23/2026 3/13/2026 2065603 211,038.90 3/27/2026 4/1/2026 3/17/2026 3/30/2026 3/31/2026 3/25/2026 3/31/2026 2065659 139,971.85 SAGEVIEW ADVISORY GROUP LLC 4/1/2026 SAN DIEGO COUNTY ASSESSOR 4/1/2026 SAN DIEGO COUNTY WATER AUTH 3/20/2026 2065657 11,724.00 3/20/2026 3/27/2026 3/20/2026 3/27/2026 4/28/2026 1:46:05 PM Page 7 Check Register Check Dates: 3/19/2026 thru 4/22/2026 2065615 1,796.10 UB REFUND 0000299242 1,796.10 4/8/2026 99999 ubRef040926006 2065661 950.28 CUSTOMER REFUND 950.28 4/15/2026 30592 7703040926 2065616 41.74 UB REFUND 0000305103 41.74 4/8/2026 99999 ubRef040926010 2065662 1,600.00 AS-NEEDED COMMUNICATIONS CONSU 1,600.00 4/15/2026 18376 1873 2065552 1,461.54 UB REFUND 0000306373 1,461.54 3/25/2026 99999 UB REF03262600620656054,346.13 UNMANNED AIRCRAFT SYSTEM 4,346.13 4/8/2026 21394 OTAY 25 2065663 1,347.00 S.T.A.R.T. ACADEMY 1,347.00 4/15/2026 3236 TCFOE5484 2065588 1,825.00 FIRE SPRINKLER INSPECTION 1,825.00 4/1/2026 22498 772419 2065664 22,393.57 WAX TAPE FOR 20" STEEL MAIN 20,825.74 4/15/2026 30441 0068772 2065541 197.00 TRAVEL ADVANCE 197.00 3/25/2026 3336 032426 2065679 183.80 MILEAGE REIMBURSEMENT 183.80 4/22/2026 3336 041526 2065546 12,541.68 HYDRAULIC DROP DECK TRAILER 12,541.68 3/25/2026 30471 DDD-1285 2065547 800.00 MUNIS ERP UPGRADE IMPLEMENTATION 800.00 3/25/2026 3261 045-555577 MUNIS ERP UPGRADE IMPLEMENTATION 800.00 4/15/2026 3261 045-556664 MUNIS ERP UPGRADE IMPLEMENTATION 2,920.88 4/15/2026 3261 025-547680 MUNIS ERP UPGRADE IMPLEMENTATION 3,200.00 4/15/2026 3261 045-557456 MUNIS ERP UPGRADE IMPLEMENTATION 5,600.00 4/15/2026 3261 025-549281 MUNIS ERP UPGRADE IMPLEMENTATION 5,600.00 4/15/2026 3261 045-556663 MUNIS ERP UPGRADE IMPLEMENTATION 12,823.20 4/15/2026 3261 025-546955 UNDERGROUND ALERTS 300.68 4/15/2026 427 25263300 UNDERGROUND ALERTS 928.05 4/15/2026 427 320260528 2065617 64,784.56 RETENTION/UNIFIED FIELD SERV 64,784.56 4/8/2026 20409 10203 PORT TOILET RENTAL 175.00 4/8/2026 15675 5998133 PORT TOILET RENTAL 848.00 4/8/2026 15675 5996400 2065692 5,037.14 LEAK DETECTION SERV 5,037.14 4/22/2026 18517 126811 2065619 247.00 BI-WEEKLY PAYROLL DEDUCTION 247.00 4/8/2026 3633 10247 2065667 8,717.57 HACH APA 6000 ANALYZER PM PART 8,717.57 4/15/2026 18946 90561578 UTILITY SERVICES ASSOC LLC 3/3/2026 VEHICLE REGISTRATION COLLECTIONS 4/9/2026 VICI VALCO INSTRUMENTS CO INC 3/10/2026 UNIFIED FIELD SERVICES CORP 1/14/2026 UNITED SITE SERVICES INC 2065618 1,042.77 3/31/2026 3/31/2026 UNDERGROUND SERVICE ALERT 2065666 1,228.73 4/1/2026 4/1/2026 TYLER TECHNOLOGIES INC 2/28/2026 2065665 30,944.08 3/19/2026 3/24/2026 3/24/2026 3/31/2026 3/19/2026 3/18/2026 THERESA KREINBRING 3/24/2026 4/15/2026 TOTAL TRAILER SOLUTIONS LLC 3/18/2026 THE CENTRE FOR ORGANIZATION 3/25/2026 THE HILLER COMPANIES 3/10/2026 THE TRENTON CORPORATION 3/30/2026 SVPR COMMUNICATIONS LLC 2/28/2026 TC CONSTRUCTION CO INC 3/24/2026 TEEDEEUAS LLC 4/6/2026 SPW CONSTRUCTION 4/8/2026 STEVEN SEKIMOTO 4/9/2026 SUSANA ISLAS DE BRINGAS 4/8/2026 4/28/2026 1:46:05 PM Page 8 Check Register Check Dates: 3/19/2026 thru 4/22/2026 DECOMPOSED GRANITE 270.73 3/25/2026 16114 5770817 DECOMPOSED GRANITE 1,076.36 3/25/2026 16114 5770479 DECOMPOSED GRANITE 1,092.65 3/25/2026 16114 5770330 DECOMPOSED GRANITE 1,805.95 3/25/2026 16114 5770818 DECOMPOSED GRANITE 3,220.11 3/25/2026 16114 5763853 2065589 140.00 BEE REMOVAL SERV 140.00 4/1/2026 1343 94520 2065590 35,852.15 PLAN CHECK (JAN 2026) 35,852.15 4/1/2026 21997 2066352 2065693 33,088.60 PLAN CHECK (FEB 2026) 33,088.60 4/22/2026 21997 2066740 HYDRAULIC MODELING 580.00 4/15/2026 19866 201858 HYDRAULIC MODELING 1,040.00 4/15/2026 19866 201859 2065694 1,760.00 COTTONWOOD SEWER PUMP STATION 1,760.00 4/22/2026 19866 201891 2065553 98.59 UB REFUND 0000306678 98.59 3/25/2026 99999 UB REF032626007Total2,130,713.10 2,122,098.15 YAZMIN BELTRAN 3/24/2026 WOOD RODGERS INC 2065668 1,620.00 2/28/2026 2/28/2026 2/28/2026 WE GOT YA PEST CONTROL INC 3/16/2026 WEST YOST & ASSOCIATES INC 1/31/2026 2/28/2026 VULCAN MATERIALS COMPANY 2065554 7,465.80 2/28/2026 2/28/2026 2/28/2026 2/28/2026 2/28/2026 4/28/2026 1:46:05 PM Page 9