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04-05-23 Board Packet
1 OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY BOARD OF DIRECTORS MEETING 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA WEDNESDAY APRIL 5, 2023 3:30 P.M. AGENDA 1. ROLL CALL 2. PLEDGE OF ALLEGIANCE 3. APPROVAL OF AGENDA 4. APPROVAL OF THE MINUTES OF THE REGULAR MEETING OF FEBRUARY 1, 2023 5. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD’S JURISDICTION INCLUDING AN ITEM ON TODAY’S AGENDA The District’s meeting is live streamed. Information on how to watch and listen to the District’s meeting can be found at this link: https://otaywater.gov/board-of- directors/agenda-and-minutes/board-agenda/. PUBLIC HEARING 6. PUBLIC HEARING ON BOARD OF DIRECTORS PER DIEM RATE THE BOARD WILL BE HOLDING A PUBLIC HEARING TO HEAR THE PUB- LIC’S COMMENTS ON THE PROPOSED 4.4% INCREASE TO THE BOARD OF DIRECTORS’ PER DIEM RATE FOR ATTENDING MEETINGS AND PER- FORMING THE DUTIES OF THEIR OFFICE a) ADOPT ORDINANCE NO. 588 TO APPROVE THE PROPOSED 4.4% IN- CREASE TO THE BOARD OF DIRECTORS’ PER DIEM RATE FOR AT- TENDING MEETINGS AND PERFORMING THE DUTIES OF THEIR OF- FICE; AND ADOPT RESOLUTION NO. 4426 AMENDING POLICY 8 TO REFLECT THE NEW PER DIEM RATE 2 CONSENT CALENDAR 7. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PARTICULAR ITEM: a) APPROVAL OF FIRST AMENDMENT OF THE FIRE AND EMERGENCY SERVICES TRAINING FACILITY LEASE AT THE DISTRICT’S CAMPO ROAD REGULATORY SITE b) AWARD TWO (2) PROFESSIONAL SERVICES CONTRACTS FOR AS- NEEDED ELECTRICAL ENGINEERING CONSULTING SERVICES TO BSE ENGINEERING, INC. AND ENGINEERING PARTNERS, INC. FOR FISCAL YEARS 2023-2025 ACTION ITEMS 8. BOARD a) CONSIDER CASTING A VOTE FOR ONE REGULAR AND ONE ALTERNATE SPECIAL DISTRICT MEMBER TO SERVE ON THE SAN DIEGO LOCAL AGENCY FORMATION COMMISSION (MARTINEZ) b) ADOPT THE 2023 OTAY WATER DISTRICT LEGISLATIVE PROGRAM POL- ICY GUIDELINES AND TOP 10 LEGISLATIVE PRIORITIES (OTERO) c) DISCUSS THE 2023 BOARD MEETING CALENDAR (RAMOS-KROGMAN) INFORMATIONAL ITEM 9. THE FOLLOWING ITEM IS PROVIDED TO THE BOARD FOR INFORMA- TIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEM: a) 2023 ECONOMIC OUTLOOK UPDATE FOR SAN DIEGO COUNTY PRE- PARED BY LONDON MOEDER ADVISORS (KOEPPEN / LONDON) REPORTS 10. GENERAL MANAGER’S REPORT 11. SAN DIEGO COUNTY WATER AUTHORITY UPDATE 12. DIRECTORS' REPORTS/REQUESTS 13. PRESIDENT’S REPORT/REQUESTS 3 RECESS TO CLOSED SESSION 14. CLOSED SESSION a) CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to Cal- ifornia Government Code §54956.8 Property: SALT CREEK GOLF COURSE 525 HUNTE PARWAY CHULAVISTA, CA 91914 Agency negotiator: General Counsel Under negotiation: Disposition of Property b) Weir Construction vs. Otay Water District Arbitration 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 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. 4 Certification of Posting I certify that on March 30, 2023, I posted a copy of the foregoing agenda near the regular meeting place of the Board of Directors of Otay Water District, said time being at least 72 hours in advance of the regular meeting of the Board of Directors (Government Code Section §54954.2). Executed at Spring Valley, California on March 30, 2023. /s/ Tita Ramos-Krogman, District Secretary 1 MINUTES OF THE BOARD OF DIRECTORS MEETINGS OF THE OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY February 1, 2023 1.The meeting was called to order by President Robak at 3:39 p.m. 2.ROLL CALL Directors Present:Croucher, Keyes, Lopez, Robak and Smith Directors Absent:None Staff Present:General Manager Jose Martinez, General Counsel Dan Shinoff, Chief of Engineering Michael Long, Chief Financial Officer Joe Beachem, Chief of Administration Adolfo Segura, Chief of Operations Andrew Jackson, Asst. Chief of Finance Kevin Koeppen, District Secretary Tita Ramos-Krogman and others per attached list. 3.PLEDGE OF ALLEGIANCE 4.APPROVAL OF AGENDA A motion was made by Director Croucher, seconded by Director Lopez, and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez, Robak and Smith Noes: None Abstain: None Absent: None to approve the agenda. 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 Mr. Barry Willis, Commissioner from the Local Agency Formation Commission (LAFCO), provided his biography to the board and indicated that he is seeking re- election to LAFCO. UCONSENT ITEM 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: AGENDA ITEM 4 2 A motion was made by Director Keyes, seconded by Director Lopez carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez, Robak and Smith Noes: None Abstain: None Absent: None to approve the following consent calendar items: a) AWARD A PROFESSIONAL ENGINEERING SERVICES AGREEMENT TO WOOD RODGERS, INC. FOR DESIGN AND CONSTRUCTION SUPPORT OF THE COTTONWOOD SEWER PUMP STATION REPLACEMENT PROJECT IN AN AMOUNT NOT-TO-EXCEED $577,800.00 b) AWARD A CONTRACT TO MERINO LANDSCAPE, INC. TO UPDATE THE LANDSCAPING IN AND AROUND THE ENTRANCE TO THE ADMINISTRATION BUILDING IN THE AMOUNT OF $190,360 ACTION ITEMS 7. BOARD a) DISCUSS THE 2022 BOARD MEETING CALENDAR There were no changes to the board calendar. UREPORTS 8. GENERAL MANAGER REPORT General Manager Jose Martinez provided his GM Report to the board and noted that on January 9th, water deliveries to Mexico resumed and are scheduled through January and February 2023. The emergency water delivery was requested due to an emergency aqueduct failure in Mexico. Mr. Martinez and System Operations Manager Jake Vaclavek responded to questions from the board with regards to this matter. In response to a question from President Robak regarding Franklin Covey Training, Chief of Administrative Services Adolfo Segura discussed training opportunities for staff. 9. SAN DIEGO COUNTY WATER AUTHORITY UPDATE Director Smith discussed CWA’s process for developing its 2024/25 budget, eight new board members, and a welcome reception for the new MWD Chair Adan Ortega. He also discussed the January 31, 2023 deadline to submit proposals to the US Department of Interior for the Colorado River and indicated that no agreement 3 was made. An update on this matter will be provided in the future. Mr. Smith also shared that there will be a board retreat on February 13th and 14th, and shared information about the Pure Water Project in Southern California. Director Gary Croucher discussed funding concerns to repair Lake Hodges and responded to a question from President Robak with regards to the Santa Fe Irrigation District’s and the San Dieguito Water District’s involvement with Lake Hodges. 10. DIRECTORS' REPORTS/REQUESTS Director Smith provided an update on the MWD Colorado River Tour scheduled for January 27 and 28, 2023. Written reports from Directors Croucher, Keyes, Lopez and Smith were submitted to District Secretary Ramos-Krogman, which will be attached to the minutes for today’s meeting. 11. PRESIDENT’S REPORT President Robak shared that he is now the President of the Water Conservation Garden Authority Board. A written report from President Robak was submitted to District Secretary Ramos- Krogman and will be attached to the minutes for today’s meeting. U UUOTAY WATER DISTRICT FINANCING AUTHORITY 12. NO MATTERS TO DISCUSS There were no items scheduled for discussion for the Otay Water District Financing Authority board. 13. ADJOURNMENT With no further business to come before the Board, President Smith adjourned the meeting at 4:19 p.m. President ATTEST: District Secretary Pay To: Employee Number ITEM DATE 1 1/3/2023 2 1/4/2023 3 1/11/2023 .. 1/13/2023 s 1/17/2023 6 1/18/2023 7 1/24/2023 8 1/25/2023 9 1/25/2023 10 1/26/2023 11 1/27/2023 12 1/29/2023 13 1/31/2023 Total Meeting Per Diem: (SIS8 PER \IF.ETl'.'>G) Total Mileage Claimed: GM Receipt: OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Mark Robak 7014 MEETING East County Chamber of Commerce Otay Water District Otay Water District Meeting with Sweetwater & Helix Board Presidents Otay Water District -Finance & Admin Comm. East County EDC Monthly Meeting Water Conservation Garden Otay Water District Sweetwater Authority Board Meeting San Diego County Water Authority MWD Inspection Trip MWD Inspection Trip Water Conservation Garden •, s 1,580 91 From: PURPOSE / ISSUES Government Affairs & Infrastructure Committee Board Meeting Com111it1ee Agenda Briefing Discussed potential strategic opportunities -�O CHARGE Discussion of finance and administration matters Discussion of regional economic matters JPA Board Meeting Board :vteeting Agenda Briefing Meet new directors -XO CHARGE Reception for MWD Chair, Adan Ortega Tour of the Colorado River Aqueduct Tour of the Colorado River Aqueduct -NO CIIARGE Strategic Planning Meeting Director Signature Miles Date: _ FOR OFFICE lJSE: TOTAL MILEAGE REIMBURSEMENT: S ------ Period Covered 1/1/2023 1/31/2023 \IILL\GE 110;\IF. .\IILE.\GK TOOW0OW0TO OTIIER 110.\IE LOC,\ TIO.\S 0 0 7 0 0 0 0 0 7 0 0 20 0 0 0 0 0 0 0 19 0 19 0 19 0 0 14 77 Pay To: Mark Robak Employee Number: 7014 ITEMIZED REIMBURSEMENT CLAIMED (Attach receipts for expenses greater than$ I 0) OTA Y WATER DISTRICT BOARD OF DIRECTORS EXPENSE CLAIM FORM Period Covered: From: 1-1-23Date Type of Reimbursement 1-13-22 Lunch with Sweetwater & Helix Presidents at Mario's Restaurant TOTAL Reimbursement Claimed: Director Signature: Date: GM Approval: Date: EXHIB IT D To: 1-31-23 Amount $28.03 (Director’s Signature) GM Receipt: Date: FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To: Gary Croucher Period Covered: Employee Number: 7011 From: 01/01/23 To: 01/31/23 ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED (Via Teleconference) MILEAGE HOME to OWD OWD to HOME MILEAGE OTHER LOCATIONS 1 01/04/23 OWD Board Meeting Monthly Board Meeting - - 2 01/24/23 CWA Matters Meeting Met with Director Smith and GM Martinez to discuss CWA matters - - 3 01/25/23 East County Caucus Meeting Discuss East County issues with agencies and CWA - - 4 5 6 7 8 9 Total Meeting Per Diem: $474 ($158 per diem) Total Mileage Claimed: miles Pay To: Ryan Keyes Employee Number 1896 ITEM DATE MEETING 1 1/4/2023 OWD Board Mtg 2 1/14/2023 CSDA Class 3 1/16/2023 CSDAClass OT A Y WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM PURPOSE / ISSUES Monthly Board Meeting Fraud Detection & Prevention for Special Districts Period Covered From: 1/1/23---1/31/23 MILEAGE HOME MlLEAGE TOOWDOWD TO OTHER HOME LOCATIONS Reserve Policies for Special Districts: How much is enough? 4 1/17/2023 EO&WR Committee Mtg EO&WR Monthly Committee Mtg. 5 1/21/2023 6 1/29/2023 7 1/31/2023 8 9 10 Total Meeting Per Diem: ($158 PER MEETING) Total Mileage Claimed: GM Receipt: CSDA Class Revenue Enhancements for Special Districts CSDA Class Strategic Planning for Special Districts CSDA Class Winning Federal Grants $ I, 106.00 Director Signature Miles FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ ____ _ OTA Y WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To: Jose Lopez Period Covered: Emplovee Number: 7010 01/1/23 To: 01/31/23ITEM I 2 3 DATE MEETING 01/04/23 Otay Water District Board Meeting 01/12/23 GM Meeting 01/13/23 Chula Vista Chamber of Commerce Meeting Total Meeting Per Diem: ($158 per diem) $316 Total Mileage Claimed:19 PURPOSE / ISSUES MILEAGE MILEAGE DISCUSSED HOME10OWD OTHER OWD10HO�IE LOCATIONS Monthly regular board meeting 19 Met with GM Martinez to discuss District matters First Friday Breakfast Meeting CHARGE miles (Director's Signature) GM Receipt: Date, _FOR OFFICE $______ Pay To: Tim Smith OT A Y WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Employee Number 1845 From: ITEM DATE I 1/4/2023 2 1/13/2023 3 1/24/2023 4 1/25/2023 5 1/26/2023 6 1/27/2023 7 1/28/2023 8 1/23/2023 9 10 Total Meeting Per Diem: ($158 PER MEETI NG) Total Mileage Claimed: GM Receipt: MEETING PURPOSE / ISSUES OWD Board Meeting Monthly Board Meeting CoWU Prep. Meeting Discuss new year speakers and prepare for February 2023 meeting CWA Matters Discuss CW A Matters with GM Martinez and Director Croucher East County Caucus Dicuss East County issues with agencies and CWA Ortega Dinner Reception Attend Dinner Reception event for incoming Chair Adan Ortega Colorado River Tour Host at Tour of the Colorado River with multiagencies MWD/CW A/Otay Colorado River Tour Host at Tour of the Colorado River with multiagencies MWD/CWA/Otay OC/SD Joint Reception for Attend OC/SD reception for incoming Chair Adan Ortega Adan Ortega $ 1,264.00 Director Signature FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ ____ _ Period Covered 1/1/2023 to l/31/2023 MILEAGE HOME MILEAGE TOOWDOWD TO OTHER HOME LOCATIONS 26 0 0 0 0 0 0 44 0 0 0 24 0 24 0 176 {AS7 Law San Diego/004344/000002/MI/S0548389.DOCX} TO: The Otay Water District Board of Directors, General Manager Jose Martinez FROM: Daniel R. Shinoff, Esq. RE: Increasing the Board of Directors Per Diem Compensation - Policy 08 DATE: April 5, 2023 PURPOSE Policy 8 provides for Board members to be compensated for each day of attendance at meetings of the Board or for each day of service rendered as a Director by request or authorization of the Board. California Water Code sections 20200 et seq. authorize the Board of Directors, by Ordinance, to increase the amount of per diem compensation they receive for performing approved duties. If the per diem compensation is increased, Policy 8 will also need to be amended to reflect the change. The purpose of the proposed amendments outlined in this report is to update Board of Directors Policy 8 to increase the compensation to be paid to members of the Board of Directors for each day of service as a Director, and to specify that expenses incurred by spouses, family members, or guests are the responsibility of the Director in accordance with District practice and the law, as described in greater detail below. PROPOSED CHANGES TO POLICY NO. 8 1.Increasing Compensation to be Paid to Members of the Board of Directors Board Policy 8 Section A. Directors’ Per Diem provides, in pertinent part, that the members of the Board of Directors receive per diem compensation “in the amount of $158 for each day of attendance at meetings of the Board or for each day of service rendered as a Director by request or authorization of the Board, not to exceed a total of ten (10) days in any calendar month.” Water Code Section 20201 provides that the Board may provide compensation to members of the Board of Directors “in an amount not to exceed … $100”. Section 20202 authorizes the Board to increase the amount of compensation above the amount of $100 per day but, provides that “the increase may not exceed an amount equal to 5 percent, for each calendar year following the operative date of the last adjustment ...” Procedurally any increase must be by Ordinance after AGENDA ITEM 6a Proposed Changes to Policy No. 8 April 5, 2023 Page 2 {AS7 Law San Diego/004344/000002/MI/S0548389.DOCX} a properly noticed public hearing (Water Code Section 20203). The public hearing must be noticed pursuant to Section 6066 of the Government Code, which requires publication of notice of the proposed Ordinance “once a week for two successive weeks.” Section 6066 provides further that “[t]wo publications in a newspaper published once a week or oftener, with at least five days intervening between the respective publication dates not counting such publication dates, are sufficient. The period of notice commences upon the first day of publication and terminates at the end of the fourteenth day, including therein the first day.” Section 20204 of the Water Code provides that the ordinance increasing compensation to be paid board members shall become effective sixty (60) days from the date of its final passage. The District has complied with notice publication requirements by the Star News and the East County Californian newspapers on March 17, 2023 and March 24, 2023. Accordingly, pursuant to the aforementioned legal authorities with the District Policy, the Board is legally authorized to increase by Ordinance, the current compensation of $158 for each day of attendance at meetings of the Board or for each day of service rendered as a Director by request or authorization of the Board, to $165 per day, and not to exceed 10 days per month. 2. Policy Corrections Necessary to Conform with the Law a. If the Board adopts Ordinance No. 588 and increases the Directors’ per diem compensation pursuant to California Water Code section 20200 et seq., Policy 8, Section A. Directors’ Per Diem must also be amended to reflect the amount of the increased per diem compensation. The proposed corrections are shown on the document titled “Policy No. 8 Strike-through”, which is attached to this Report. The Board can adopt the proposed corrections by Resolution. Attachments: Attachment A: Ordinance No. 588 Attachment B: Resolution No. 4426 Exhibit 1: Policy No. 8 Strike-through Exhibit 2: Policy No. 8 Final ATTACHMENT A ORDINANCE NO. 588 ORDINANCE OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT INCREASING THE COMPENSATION TO BE PAID TO MEMBERS OF THE BOARD OF DIRECTORS FOR COMPENSATION FOR EACH DAY OF ATTENDANCE AT MEETINGS OF THE BOARD OR FOR EACH DAY OF SERVICE RENDERED AS A DIRECTOR WHEREAS, California Water Code Section 20200 et seq. sets forth the authority and procedure for establishing per diem compensation for the Board of Directors for occurrences constituting District business, official duties or each day's service rendered as a Director at the request of the Board, as a "day’s service" is defined and authorized by separate District resolution and updated from time to time; and WHEREAS, the California Water Code authorizes an increase in the per diem compensation that the Board of Directors may receive of up to five percent (5%) for each calendar year from the effective date of the last increase, and limits the total compensation that may be received to a maximum of ten (10) days per calendar month; and WHEREAS, the last adjustment in compensation for the Board of Directors occurred effective October 2, 2022; and WHEREAS, the Board of Directors seeks to increase the amount of compensation in accordance with the provisions of the California Water Code; and WHEREAS, Section 20204 of the California Water Code provides that the ordinance increasing compensation to be paid board members shall become effective sixty (60) days from the date of its final passage; and WHEREAS, in accordance with Section 20203 of the California Water Code and Section 6066 of the California Government Code, a public hearing was held before the Board at its regular meeting on April 5, 2023, at 3:30 p.m., or soon thereafter as was practicable, at the District’s administrative building located at 2554 Sweetwater Springs Boulevard, Spring Valley, California ATTACHMENT A 91978, and a notice of said hearing was duly published in the Star News and the East County Californian newspapers on March 17, 2023 and March 24, 2023. NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT DOES HEREBY PROMULGATE ORDINANCE NO. 573 AND DOES ORDAIN AS FOLLOWS: Section 1. Beginning on July 1, 2023, and continuing until modified by Board action, the per diem compensation for Directors of Otay Water District is increased to One Hundred Sixty Five Dollars ($165) for each day of attendance at meetings of the Board or for each day of service rendered as a Director by request or authorization of the Board. Said increase does not exceed five percent (5%) for each calendar year since the effective date of the last increase; and Section 2. In accordance with Section 20202 of the California Water Code, no member of the Board of Directors shall receive the compensation set forth in Section 1 of this Ordinance for more than ten (10) days in any calendar month. Section 3. This Ordinance shall take effect on July 1, 2023, pursuant to Section 20204 of the California Water Code. Section 4. All ordinances, resolutions, or administrative actions by the Board of Directors, or parts thereof, that are inconsistent with any provision of this Ordinance are hereby superseded only to the extent of such inconsistency. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting held this 5th day of April, 2023. Ayes: Noes: Abstain: Absent: President ATTEST: District Secretary ATTACHMENT B RESOLUTION NO. 4426 RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING BOARD OF DIRECTORS POLICY NO. 8, REIMBURSEMENT OF EXPENSES. WHEREAS, the Otay Water District Board of Directors Policy No. 8 provides for, among other things, per diem compensation for Directors and reimbursement of expenses which are the personal responsibility of the Directors. WHEREAS, a revision to Otay Water District Board of Directors Policy No. 8 is required to reflect the Directors’ increased per diem compensation of One Hundred Sixty Five Dollars ($165) effective July 1, 2023, following the Board’s adoption of Ordinance 588 after a properly noticed public hearing at its regular meeting on April 5, 2023. WHEREAS, the amendments to Policy No. 8 to align the policy provisions with Ordinance 588 and with District practice, are in the District’s interest. WHEREAS, the strike-through copy of the proposed policy is attached as Exhibit 1 to this resolution; and WHEREAS, the Board has reviewed and considered the proposed amendments to Policy No. 8. NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED by the Board of Directors of the Otay Water District that the above stated recitals are incorporated herein by reference; BE IT RESOLVED FURTHER that the amended Policy No. 8, incorporated herein as Exhibit 2, is hereby adopted. FINALLY BE IT RESOLVED that this resolution shall be in full force and effect immediately after its passage and approval. ATTACHMENT B PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting held this 5th day of April, 2023. Ayes: Noes: Abstain: Absent: President ATTEST: District Secretary OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 84/35/232 Page 1 of 7 Purpose To provide guidelines for payment of compensation and reimbursement of expenses to Directors in connection with their attendance at meetings or the performance of other authorized business, and for group insurance benefits for Directors. Background Members of the Board of Directors (“Directors”) attend regular, adjourned or special meetings of the Board of Directors (“Board”). In addition, Directors attend other District meetings, committee meetings, association meetings, and educational seminars on behalf of the District. These meetings and seminars are related to District business, water and wastewater, water and wastewater related issues, and California special districts. State statutes authorize District payments for attendance at meetings and reimbursements of expenses incurred. State law also authorizes the District to provide health and welfare benefits for active Directors and, in limited circumstances, retired Directors if they served 12 years and were first elected prior to January 1, 1995. The District is also authorized to offer health and welfare benefits for retired Directors who commenced office on or after January 1, 1995, if the recipient participates on a self-pay basis. Policy The District will compensate Directors on a per diem basis for attendance at authorized meetings or functions and will reimburse Directors for reasonable expenses incurred while traveling on District business to include, lodging, dining, transportation and related incidentals. A. Directors’ Per Diem As provided in Section 1.01 C. of the District Code of Ordinances,each Director shall receive a per diem in the amount of $16558(effective October 2July 1, 20232) for each day of attendance atmeetings of the Board or for each day of service rendered as a Director by request or authorization of the Board, not to exceed atotal of ten (10) days in any calendar month. Attendance at any meeting shown on Exhibit A to this Policy shall be deemed a meetingrequested or authorized by the Board. Attendance at meetings shallbe in accordance with Exhibit A. The President of the Board or theBoard may authorize a Director to attend meetings not listed inExhibit A when the President or the Board determines that it is inthe interest of the District that a Director attend, and that suchattendance be compensated and expenses reimbursed. Director’sclaims for per diem amounts shall be made on a “Board of DirectorsPer Diem and Mileage Claim Form” (Exhibit B). The President of theBoard or the Board may approve reimbursement of expenses outside EXHIBIT 1 OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 48/53/232 Page 2 of 7 the per diem limit for a Director if the Director submits receipts for all of the related District business expenses. The Board President or the Board of Directors may restrict a Director’s ability to receive a per diem for meeting attendance if the Director engages in misconduct. Said restriction may apply to pre-approved meetings as listed on Attachment A of this policy. (Please see Board Policy 40: Ethics.) Attendance at a meeting that is not authorized by this policy (pre-approved meetings) or pre-approved by the President may be approved by the Board for per diem compensation. Director’s seeking per diem compensation for these meetings shall request that the item be presented to the Board at its next regularly scheduled meeting for consideration. The decision of the Board shall be final. When travel arrangements require a day earlier arrival or a day later departure, Directors will be eligible for the $165158 per diem and reasonable expenses associated with the extended stay will be reimbursed as specified below. B. Pre-payment of Otherwise Reimbursable Expenses The Director may request pre-payment of registration, transportation, and lodging, using the “Board of Directors Travel Request Form” (Exhibit C). Pre-payments shall be limited to the Director’s expenses only. No advances shall be made on travel expenses. C. Reimbursement of Expenses Each Director shall be reimbursed for travel expenses to and from the meetings described in Exhibit A or for any other authorized District business as follows: 1. Authorization Travel associated with the attendance of meetings or functions for Directors shall be approved in advance by the Otay Water District Board President. To request approval of travel, the Director should complete a “Board of Directors Travel Request Form” (Exhibit B) in order to be eligible for compensation and/or reimbursement. Travel requests will be reviewed and approved by the Board President or the Board. 2. Transportation a. Air Transportation The District will endeavor to purchase airline tickets in advance taking advantage of discounts and low airfares. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 48/53/232 Page 3 of 7 b. Automobile 1. Personal Auto: Directors may use their personal vehicle. The District will reimburse Directors at the current rate/mile as established by the IRS, plus tolls, parking, etc., provided, however, if air transportation is available, the total amount of expense paid shall be limited to the cost of coach air travel between points traveled by personal vehicle. Gasoline, collision and liability insurance, and maintenance will be provided by the Director and is deemed covered in the rate/mileage reimbursement. Directors using personal vehicles on District business must maintain a valid California driver’s license and the automobile insurance coverage required by the State of California, or make arrangements for a driver who meets the above requirements. 2. Rental Cars: The District will provide a rental car when needed. Such rental car shall be a compact or mid-size class, unless upgrades are offered at no additional cost to the District. c. Miscellaneous Transportation Whenever practicable, bus, taxi, rail, shuttle, etc. transportation may be used in lieu of, or in conjunction with, the modes above. 3. Meals and Lodging a. Meals and Beverages Whenever travel requires meals, the meals, excluding gratuity, shall be reimbursable, provided the Director presents a receipt along with the “Board of Directors Expense Claim Form” (Exhibit D) for all meals. Reimbursements for expense items where a receipt has been lost will not be paid until the President or the Board has reviewed and approved the expense item. Meals are reimbursable based on the Meals and Incidental Expenses (M&IE) as updated by the U.S. General Services Administration: 1. Full Day Reimbursement When a Director is traveling for a full day and no meals are provided for by other sources, such as pre-paid registration, the Director may be reimbursed for meal expenses at the rate provided by the M&IE per day. This amount is exclusive of OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 48/53/232 Page 4 of 7 any gratuities. 2. Single Meal Reimbursement When a Director requires reimbursement for a single meal while traveling, the maximum meal reimbursement amount shall be at a rate provided by the M&IE for Breakfast, lunch, and/or dinner, or amounts determined by the President or the Board to be reasonable for the occasion or circumstances. These amounts and any amount approved by the President or Board shall exclude gratuities. 3. Partial Day Reimbursement When a Director will be traveling for a partial day or where a single meal is provided for by other sources such as pre-paid registration, the maximum reimbursement amount shall be at the rate provided by the M&IE per meal, or such other amounts as may be determined by the President or the Board to be reasonable for the occasion or circumstances. In any event all amounts to be reimbursed shall exclude any gratuities. 4. Taxes The maximum meal reimbursement amounts are inclusive of and assume expenses for taxes. The maximum meal reimbursements shall exclude any and all gratuities. b. Lodging The District will reimburse Directors or pre-pay accommodations in single rooms at conference facilities or in close proximity when applicable. Or, in the absence of conference accommodations, normal single-room business, government or commercial class accommodation may be obtained. Under normal circumstances, lodging will not be reimbursed for the night before a conference starts and the night after it ends. However, in situations where available travel schedules would require the Director to leave home before 6:00 AM or return to home after 12:00 AM, lodging for the night before or the night after will be reimbursable. 4. Entertainment The District shall not cover any expenses incurred for recreation or entertainment. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 48/53/232 Page 5 of 7 5. Incidental Expenses Unavoidable, necessary, and reasonable authorized expenses will be fully reimbursed by the District. Some examples of allowable expenses are: a. Reasonable transportation to local restaurants and to optional functions that are a part of conference events. b. Parking fees. c. The following expenses are not reimbursable: 1. Alcoholic beverages 2. Parking or traffic violations 3. In-room movies or laundry services 6. Directors’ Responsibility a. Directors must submit a detailed “Board of Directors Expense Claim Form” for reimbursement. Claim forms should be supported by vouchers and itemized receipts of expenditures for which reimbursement is being requested. Receipts must be attached for all expenses. If a receipt is lost, the lost receipt must be noted on the “Board of Directors Expense Claim Form” (Exhibit D) and approved by the President or the Board before any payment can be made. Claim forms shall be submitted within 45 calendar days after the expense was incurred. Expense claims requiring reimbursement to the District, which are not reconciled within 45 calendar days, shall be deducted from the next month’s reimbursement. b. Expenses will not be reimbursed for meetings that have been pre-paid and not attended. The President or the Board may excuse an absence for a meeting. The absent Director shall provide a verbal or written report at the next regularly scheduled Board meeting stating the reason for the absence and, if appropriate, request that it be excused. Directors will be required to reimburse the District for any pre-paid expenses for any unexcused absence. This reimbursement will be made by deduction from future expenditures. c. When two (2) or more Directors combine an expense on one receipt, the Director requesting reimbursement should indicate, on or attached to the Director’s “Board of Directors Expense Claim Form” the identity of the other persons sharing expenses. This will facilitate appropriate allocation of expenses to each participant. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 48/53/232 Page 6 of 7 d. Expenses incurred by a Director, other than reimbursable expenses, including, but not limited to expenses of the Director’s spouse, family members, or guests are the responsibility of the Director. e. Each Director shall provide a brief report on meetings attended at the expense of the District at the next regular meeting of the Board of Directors [Government Code Section 53232.3(d)]. The report may be provided verbally during the “Directors Reports” section of the meeting or submitted in writing to the District Secretary on the “Board of Directors Meetings Attended Form” (Exhibit E). Written reports will be filed with the minutes of the meeting and become part of the board records. f. All documents related to reimbursable District expenditures are public records subject to disclosure under the California Public Records Act. [Government Code Section 53232.3(d)]. g. The District shall, at least annually, provide a report to disclose any reimbursement paid by the District within the immediately preceding fiscal year of at least $100 for each individual charge for services or product received. “Individual charge” (as defined in California Government Code Section 53065.5) includes, but is not limited to, one meal, lodging for one day, transportation, or a registration fee. D. District Group Insurance Benefits 1. Each Director, while serving as a member of the Board of Directors, shall be entitled to the health and welfare and life insurance benefits set forth in the Schedule of Benefits in the District Group Insurance Plan Booklet, which benefits are furnished by the District at District cost, with applicable contributions, for active District employees and Directors. Each active Director shall also be entitled to a $65,000 term life and accidental death and dismemberment insurance policy (subject to policy requirements and any standard age reduction schedule), a $100,000 travel accidental death and dismemberment policy. In addition to the foregoing, the District will pay premiums for additional individual life insurance coverage in an amount of up to $250,000 for a 20 year term for those active Directors who apply for such coverage with the District’s provider and meet the provider’s standard underwriting guidelines and policy requirements. If coverage at higher amounts or for a longer OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 48/53/232 Page 7 of 7 term is made available by the provider, each Director may purchase such additional coverage on a self-pay basis. 2. Each former member of the Board of Directors, who served in office after January 1, 1981, who was elected to a term of office that began before January 1, 1995, who is at least 60 years of age, and whose total service at the time of termination is not less than 12 years, shall be entitled to the health and welfare and life insurance benefits set forth in the District Group Insurance Plan Booklet, which benefits are furnished by the District, at District cost, for retired Directors. E. Miscellaneous 1. The General Manager shall submit the District’s organizational membership list, which the Board shall review annually in January following reorganization of the Board and election of a new President. 2. Cell Phone expenses are not considered a reimbuseable expense. Attachments Exhibit A: Approved Function List Exhibit B: “Board of Directors Per Diem and Mileage Claim Form” Exhibit C: “Board of Directors Travel Request Form” Exhibit D: “Board of Directors Expense Claim Form” Exhibit E: “Board of Directors Meetings Attended Form” EXHIBIT A Approved Functions List Board Policy for payment of per diem compensation and expenses for Director attendance at District meetings: The Board reviews its authorization and policy for payment of per diem compensation for pre-approved meetings annually, in January following reorganization of the Board and election of a new President. Below is the current Board policy: 1. The following meetings are pre-approved for all Directors to attend and receive per diem compensation and expense reimbursement: a) Otay Water District Regular and Special Board Meetings b) Otay committee meetings for committee members only c) Otay business meetings called by the General Manager or the Board President, or authorized by the Board President where individual Directors are requested to attend d) Except as otherwise specifically excluded in this policy, official District functions that take place during normal business hours where Directors are requested to attend by either the Board President or the Board e) District sponsored events or events where the District sponsors a table and the Board President or the General Manager extends invitations to Directors to attend the event f) Semi-annual conference of the Association of California Water Agencies g) Regular quarterly meetings of the Water Agencies Association of San Diego County h) Regularly monthly meeting of Council of Water Utilities i) Business meetings and conferences of the California Special District Association held in San Diego County j) Up to four (4) board meetings of the San Diego County Water Authority per calendar year k) Up to one (1) board meeting of the Metropolitan Water District per calendar year l) Business or Board Meetings of regional and/or local Chambers of Commerce, where the District maintains a membership or whose geographical area includes the District’s service area, and the meeting includes discussions that are water and wastewater-industry related All other meetings not listed here require pre-approval by the President or Board for Directors to receive per diem compensation and/or expense reimbursement. EXHIBIT A 2. The following meetings are pre-approved for designated Otay Director representatives or designated alternate. The District Secretary will maintain an updated list of designated Director representatives. Any other Director who wishes to attend these meetings and receive a per diem must have approval from the President or Board prior to the event or be designated by the President or Board, as an alternate. The pre-approval shall include the attendance of the Director at the commission, committee, board or meeting and any committee, subcommittee or other official or posted meeting of the agencies, commissions, committees or boards listed below: a) Planning Group and government agency meetings that fall within the boundaries of each Directors district (when issues impacting OWD are discussed) b) Inter-Agency Committee Meeting c) METRO (TAC/AFFORD) Commission d) ACWA or CSDA meetings/conferences e) Water Conservation Garden f) WateReuse Association g) South County Economic Development Council 3. The Board President or his designee is pre-authorized to attend District business meetings with cities and other agencies to represent Otay Water District and may claim a per diem and expenses. Any other Director desiring to attend the same meeting of this nature would require approval to attend from the President or the Board in order to receive a per diem and expense reimbursement. 4. When the President or the Board appoints a Director(s) to a committee, the meeting(s) shall be considered pre-approved for per diem and expense reimbursement. 5. The following meetings are not eligible for pre-approved per diem claims: a) Attending other Districts’ Board meetings, unless there is a matter on their agenda that is related to Otay business b) Otay employee appreciation breakfast, luncheons or dinners c) Retirement receptions d) Otay picnics or dinner-dances or other purely social events e) If a per diem reimbursement is offered by another agency (i.e. San Diego County Water Authority and the Metro Commission) f) First Friday Breakfasts unless presenting Otay official business to the assembly EXHIBIT A g) Any political campaign event or function 6. In order to submit a per diem/travel reimbursement the member must attend at least 50% of the meeting (per day) and the reimbursement request must be submitted within 45 days of the occurrence, otherwise it may be considered attended without per diem. The President of the Board will make the final determination. 7. All other meetings/conferences/tours/seminars/ workshops/functions not listed in this policy must be pre-approved by the Board President or the Board. EXHIBIT B (Director’s Signature) GM Receipt: Date: FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ INSTRUCTIONS ON REVERSE OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To: Period Covered: Employee Number: From: To: ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED MILEAGE HOME to OWD OWD to HOME MILEAGE OTHER LOCATIONS Total Meeting Per Diem: $ ($158 165 per meeting) Total Mileage Claimed: miles EXHIBIT B INSTRUCTIONS FOR PREPARATION OF BOARD OF DIRECTORS PER DIEM CLAIM FORM 1. Record the date, and name or purpose/issues discussed of meeting attended on behalf of the District. Note: The District will pay Director's per-diem for one meeting/ function per day and the maximum of 10 meetings/functions per month. If a Director attends more than 10 meetings/functions (10 days), the District will reimburse for the mileage and any reimbursable out-of-pocket expenses incurred for these additional meetings. 2. Record number of miles (round trip) driven to attend meeting/function. The use of personal vehicles in the conduct of official District business shall be reimbursed at the current Internal Revenue Service rate. The Director's expense claim should indicate the nature of the trip. If a trip begins at home, the District will reimburse the mileage from home to destination and return mileage. District insurance does not cover personal vehicles while they are being driven on District business. The reimbursement rate is inclusive of an allowance for insurance costs. The District will reimburse Directors for the deductible under their personal insurance policy should they be involved in an accident while on District business. To be eligible for reimbursement, each Director shall maintain a current California driver’s license and at least the minimum vehicle liability insurance required by State law or shall arrange for a driver who meets said standards. The District will not reimburse the cost of travel of a personal nature taken in conjunction with travel on official business. Claim forms shall be submitted within 45 calendar days after the meeting date. Expense claims requiring reimbursement to the District which are not reconciled within 45 calendar days, shall be deducted from the next month’s reimbursement. No information on the Per Diem Claim Form may be designated as confidential in nature. All expenses must be fully disclosed on the form. OTAY WATER DISTRICT BOARD OF DIRECTORS TRAVEL REQUEST FORM Director: Date of Request: Name and Location of Function: Date(s) function to be held: - Sponsoring Organization: Request for Prepayment of Fees Related to the Function: Expense Type Not Needed Pre-Payment Requested Registration Airline Auto Rental Mileage N/A Taxi/Shuttle N/A Lodging Meals N/A Other Expenses – Explain Below Lodging Preference: Explanation of Other Expenses: Signature of Director Date of Request For Office Use Only Below This Line Date of Board Approval: Expense Type Description Amount Pre-Paid Registration Airline Auto Rental Mileage N/A Taxi/Shuttle N/A Lodging Meals N/A Other Expenses District Secretary Date Processed EXHIBIT C OTAY WATER DISTRICT BOARD OF DIRECTORS EXPENSE CLAIM FORM Pay To: Period Covered: Employee Number: From: To: ITEMIZED REIMBURSEMENT CLAIMED Date Type of Reimbursement Amount TOTAL Reimbursement Claimed: $ Director Signature: Date: GM Receipt: Date: INSTRUCTIONS ON REVERSE EXHIBIT D INSTRUCTIONS FOR PREPARATION OF BOARD OF DIRECTORS EXPENSE CLAIM FORM The necessary expenses incurred while traveling on District business including common carrier fares (economy class), automobile rental charges, District business telephone calls, lodging, baggage handling, parking fees, meals, etc. will be reimbursed when documented on the Director's Per Diem and Expense Claim Forms. Receipts must be attached for all meal expenses. If a receipt is lost, the lost receipt should be noted next to the expense and submitted to the President before any reimbursement can be made. Receipts are required for the reimbursement of all expenses. All receipts must have the nature of the expense and the business purpose noted on the receipt. The District will not reimburse the cost of travel of a personal nature taken in conjunction with travel on official business. Meals shall be reimbursed as per section 3, Meals and Lodging, of this policy (Policy 8). Any receipts that include costs of personal travel (e.g., hotel receipt for employee and spouse) should identify what the cost would have been without personal travel (e.g., single room rate as opposed to double room rate). Claim forms shall be submitted within 45 calendar days after the expense was incurred. Expense claims requiring reimbursement to the District which are not reconciled within 45 calendar days, shall be deducted from the next month’s reimbursement. No information on the Expense Claim Form may be designated as confidential in nature. All expenses must be fully disclosed on the form. The following expenses are not reimbursable: a. Alcoholic Beverages d. Laundry service b. Parking or traffic violations e. Entertainment or recreation c. In-room movies f. Expenses incurred by spouses, family members, or guests. ND: 4840-9653-1715, v. 2 EXHIBIT D Exhibit E Board of Directors Meetings Attended Form Director Name: Period Covered: From: To: Item No. Date Meeting Attended Description 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. -Instructions on Reverse - Exhibit E Instructions for the Preparation of the Board of Directors Meetings Attended Form 1. Enter the period (dates) of the meetings that will be reported on the form. 2. Record the date, name/purpose of meeting, and issues discussed at the meeting(s) attended on behalf and expense of the District. Board of Directors Meetings Attended Forms shall be submitted to the District Secretary prior to or on the date of the next regular board meeting that follows the dates of the meetings reported on this form. No information on the form may be designated as confidential in nature. This form will be filed with the minutes of the meeting and become part of the board records. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/5/23 Page 1 of 7 Purpose To provide guidelines for payment of compensation and reimbursement of expenses to Directors in connection with their attendance at meetings or the performance of other authorized business, and for group insurance benefits for Directors. Background Members of the Board of Directors (“Directors”) attend regular, adjourned or special meetings of the Board of Directors (“Board”). In addition, Directors attend other District meetings, committee meetings, association meetings, and educational seminars on behalf of the District. These meetings and seminars are related to District business, water and wastewater, water and wastewater related issues, and California special districts. State statutes authorize District payments for attendance at meetings and reimbursements of expenses incurred. State law also authorizes the District to provide health and welfare benefits for active Directors and, in limited circumstances, retired Directors if they served 12 years and were first elected prior to January 1, 1995. The District is also authorized to offer health and welfare benefits for retired Directors who commenced office on or after January 1, 1995, if the recipient participates on a self-pay basis. Policy The District will compensate Directors on a per diem basis for attendance at authorized meetings or functions and will reimburse Directors for reasonable expenses incurred while traveling on District business to include, lodging, dining, transportation and related incidentals. A. Directors’ Per Diem As provided in Section 1.01 C. of the District Code of Ordinances,each Director shall receive a per diem in the amount of $165(effective July 1, 2023) for each day of attendance at meetings ofthe Board or for each day of service rendered as a Director by request or authorization of the Board, not to exceed a total often (10) days in any calendar month. Attendance at any meeting shown on Exhibit A to this Policy shall be deemed a meetingrequested or authorized by the Board. Attendance at meetings shallbe in accordance with Exhibit A. The President of the Board or theBoard may authorize a Director to attend meetings not listed inExhibit A when the President or the Board determines that it is inthe interest of the District that a Director attend, and that suchattendance be compensated and expenses reimbursed. Director’sclaims for per diem amounts shall be made on a “Board of DirectorsPer Diem and Mileage Claim Form” (Exhibit B). The President of theBoard or the Board may approve reimbursement of expenses outside EXHIBIT 2 OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/5/23 Page 2 of 7 the per diem limit for a Director if the Director submits receipts for all of the related District business expenses. The Board President or the Board of Directors may restrict a Director’s ability to receive a per diem for meeting attendance if the Director engages in misconduct. Said restriction may apply to pre-approved meetings as listed on Attachment A of this policy. (Please see Board Policy 40: Ethics.) Attendance at a meeting that is not authorized by this policy (pre-approved meetings) or pre-approved by the President may be approved by the Board for per diem compensation. Director’s seeking per diem compensation for these meetings shall request that the item be presented to the Board at its next regularly scheduled meeting for consideration. The decision of the Board shall be final. When travel arrangements require a day earlier arrival or a day later departure, Directors will be eligible for the $165 per diem and reasonable expenses associated with the extended stay will be reimbursed as specified below. B. Pre-payment of Otherwise Reimbursable Expenses The Director may request pre-payment of registration, transportation, and lodging, using the “Board of Directors Travel Request Form” (Exhibit C). Pre-payments shall be limited to the Director’s expenses only. No advances shall be made on travel expenses. C. Reimbursement of Expenses Each Director shall be reimbursed for travel expenses to and from the meetings described in Exhibit A or for any other authorized District business as follows: 1. Authorization Travel associated with the attendance of meetings or functions for Directors shall be approved in advance by the Otay Water District Board President. To request approval of travel, the Director should complete a “Board of Directors Travel Request Form” (Exhibit B) in order to be eligible for compensation and/or reimbursement. Travel requests will be reviewed and approved by the Board President or the Board. 2. Transportation a. Air Transportation The District will endeavor to purchase airline tickets in advance taking advantage of discounts and low airfares. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/5/23 Page 3 of 7 b. Automobile 1. Personal Auto: Directors may use their personal vehicle. The District will reimburse Directors at the current rate/mile as established by the IRS, plus tolls, parking, etc., provided, however, if air transportation is available, the total amount of expense paid shall be limited to the cost of coach air travel between points traveled by personal vehicle. Gasoline, collision and liability insurance, and maintenance will be provided by the Director and is deemed covered in the rate/mileage reimbursement. Directors using personal vehicles on District business must maintain a valid California driver’s license and the automobile insurance coverage required by the State of California, or make arrangements for a driver who meets the above requirements. 2. Rental Cars: The District will provide a rental car when needed. Such rental car shall be a compact or mid-size class, unless upgrades are offered at no additional cost to the District. c. Miscellaneous Transportation Whenever practicable, bus, taxi, rail, shuttle, etc. transportation may be used in lieu of, or in conjunction with, the modes above. 3. Meals and Lodging a. Meals and Beverages Whenever travel requires meals, the meals, excluding gratuity, shall be reimbursable, provided the Director presents a receipt along with the “Board of Directors Expense Claim Form” (Exhibit D) for all meals. Reimbursements for expense items where a receipt has been lost will not be paid until the President or the Board has reviewed and approved the expense item. Meals are reimbursable based on the Meals and Incidental Expenses (M&IE) as updated by the U.S. General Services Administration: 1. Full Day Reimbursement When a Director is traveling for a full day and no meals are provided for by other sources, such as pre-paid registration, the Director may be reimbursed for meal expenses at the rate provided by the M&IE per day. This amount is exclusive of OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/5/23 Page 4 of 7 any gratuities. 2. Single Meal Reimbursement When a Director requires reimbursement for a single meal while traveling, the maximum meal reimbursement amount shall be at a rate provided by the M&IE for Breakfast, lunch, and/or dinner, or amounts determined by the President or the Board to be reasonable for the occasion or circumstances. These amounts and any amount approved by the President or Board shall exclude gratuities. 3. Partial Day Reimbursement When a Director will be traveling for a partial day or where a single meal is provided for by other sources such as pre-paid registration, the maximum reimbursement amount shall be at the rate provided by the M&IE per meal, or such other amounts as may be determined by the President or the Board to be reasonable for the occasion or circumstances. In any event all amounts to be reimbursed shall exclude any gratuities. 4. Taxes The maximum meal reimbursement amounts are inclusive of and assume expenses for taxes. The maximum meal reimbursements shall exclude any and all gratuities. b. Lodging The District will reimburse Directors or pre-pay accommodations in single rooms at conference facilities or in close proximity when applicable. Or, in the absence of conference accommodations, normal single-room business, government or commercial class accommodation may be obtained. Under normal circumstances, lodging will not be reimbursed for the night before a conference starts and the night after it ends. However, in situations where available travel schedules would require the Director to leave home before 6:00 AM or return to home after 12:00 AM, lodging for the night before or the night after will be reimbursable. 4. Entertainment The District shall not cover any expenses incurred for recreation or entertainment. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/5/23 Page 5 of 7 5. Incidental Expenses Unavoidable, necessary, and reasonable authorized expenses will be fully reimbursed by the District. Some examples of allowable expenses are: a. Reasonable transportation to local restaurants and to optional functions that are a part of conference events. b. Parking fees. c. The following expenses are not reimbursable: 1. Alcoholic beverages 2. Parking or traffic violations 3. In-room movies or laundry services 6. Directors’ Responsibility a. Directors must submit a detailed “Board of Directors Expense Claim Form” for reimbursement. Claim forms should be supported by vouchers and itemized receipts of expenditures for which reimbursement is being requested. Receipts must be attached for all expenses. If a receipt is lost, the lost receipt must be noted on the “Board of Directors Expense Claim Form” (Exhibit D) and approved by the President or the Board before any payment can be made. Claim forms shall be submitted within 45 calendar days after the expense was incurred. Expense claims requiring reimbursement to the District, which are not reconciled within 45 calendar days, shall be deducted from the next month’s reimbursement. b. Expenses will not be reimbursed for meetings that have been pre-paid and not attended. The President or the Board may excuse an absence for a meeting. The absent Director shall provide a verbal or written report at the next regularly scheduled Board meeting stating the reason for the absence and, if appropriate, request that it be excused. Directors will be required to reimburse the District for any pre-paid expenses for any unexcused absence. This reimbursement will be made by deduction from future expenditures. c. When two (2) or more Directors combine an expense on one receipt, the Director requesting reimbursement should indicate, on or attached to the Director’s “Board of Directors Expense Claim Form” the identity of the other persons sharing expenses. This will facilitate appropriate allocation of expenses to each participant. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/5/23 Page 6 of 7 d. Expenses incurred by a Director, other than reimbursable expenses, including, but not limited to expenses of the Director’s spouse, family members, or guests are the responsibility of the Director. e. Each Director shall provide a brief report on meetings attended at the expense of the District at the next regular meeting of the Board of Directors [Government Code Section 53232.3(d)]. The report may be provided verbally during the “Directors Reports” section of the meeting or submitted in writing to the District Secretary on the “Board of Directors Meetings Attended Form” (Exhibit E). Written reports will be filed with the minutes of the meeting and become part of the board records. f. All documents related to reimbursable District expenditures are public records subject to disclosure under the California Public Records Act. [Government Code Section 53232.3(d)]. g. The District shall, at least annually, provide a report to disclose any reimbursement paid by the District within the immediately preceding fiscal year of at least $100 for each individual charge for services or product received. “Individual charge” (as defined in California Government Code Section 53065.5) includes, but is not limited to, one meal, lodging for one day, transportation, or a registration fee. D. District Group Insurance Benefits 1. Each Director, while serving as a member of the Board of Directors, shall be entitled to the health and welfare and life insurance benefits set forth in the Schedule of Benefits in the District Group Insurance Plan Booklet, which benefits are furnished by the District at District cost, with applicable contributions, for active District employees and Directors. Each active Director shall also be entitled to a $65,000 term life and accidental death and dismemberment insurance policy (subject to policy requirements and any standard age reduction schedule), a $100,000 travel accidental death and dismemberment policy. In addition to the foregoing, the District will pay premiums for additional individual life insurance coverage in an amount of up to $250,000 for a 20 year term for those active Directors who apply for such coverage with the District’s provider and meet the provider’s standard underwriting guidelines and policy requirements. If coverage at higher amounts or for a longer OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/5/23 Page 7 of 7 term is made available by the provider, each Director may purchase such additional coverage on a self-pay basis. 2. Each former member of the Board of Directors, who served in office after January 1, 1981, who was elected to a term of office that began before January 1, 1995, who is at least 60 years of age, and whose total service at the time of termination is not less than 12 years, shall be entitled to the health and welfare and life insurance benefits set forth in the District Group Insurance Plan Booklet, which benefits are furnished by the District, at District cost, for retired Directors. E. Miscellaneous 1. The General Manager shall submit the District’s organizational membership list, which the Board shall review annually in January following reorganization of the Board and election of a new President. 2. Cell Phone expenses are not considered a reimbuseable expense. Attachments Exhibit A: Approved Function List Exhibit B: “Board of Directors Per Diem and Mileage Claim Form” Exhibit C: “Board of Directors Travel Request Form” Exhibit D: “Board of Directors Expense Claim Form” Exhibit E: “Board of Directors Meetings Attended Form” EXHIBIT A Approved Functions List Board Policy for payment of per diem compensation and expenses for Director attendance at District meetings: The Board reviews its authorization and policy for payment of per diem compensation for pre-approved meetings annually, in January following reorganization of the Board and election of a new President. Below is the current Board policy: 1. The following meetings are pre-approved for all Directors to attend and receive per diem compensation and expense reimbursement: a) Otay Water District Regular and Special Board Meetings b) Otay committee meetings for committee members only c) Otay business meetings called by the General Manager or the Board President, or authorized by the Board President where individual Directors are requested to attend d) Except as otherwise specifically excluded in this policy, official District functions that take place during normal business hours where Directors are requested to attend by either the Board President or the Board e) District sponsored events or events where the District sponsors a table and the Board President or the General Manager extends invitations to Directors to attend the event f) Semi-annual conference of the Association of California Water Agencies g) Regular quarterly meetings of the Water Agencies Association of San Diego County h) Regularly monthly meeting of Council of Water Utilities i) Business meetings and conferences of the California Special District Association held in San Diego County j) Up to four (4) board meetings of the San Diego County Water Authority per calendar year k) Up to one (1) board meeting of the Metropolitan Water District per calendar year l) Business or Board Meetings of regional and/or local Chambers of Commerce, where the District maintains a membership or whose geographical area includes the District’s service area, and the meeting includes discussions that are water and wastewater-industry related All other meetings not listed here require pre-approval by the President or Board for Directors to receive per diem compensation and/or expense reimbursement. EXHIBIT A 2. The following meetings are pre-approved for designated Otay Director representatives or designated alternate. The District Secretary will maintain an updated list of designated Director representatives. Any other Director who wishes to attend these meetings and receive a per diem must have approval from the President or Board prior to the event or be designated by the President or Board, as an alternate. The pre-approval shall include the attendance of the Director at the commission, committee, board or meeting and any committee, subcommittee or other official or posted meeting of the agencies, commissions, committees or boards listed below: a) Planning Group and government agency meetings that fall within the boundaries of each Directors district (when issues impacting OWD are discussed) b) Inter-Agency Committee Meeting c) METRO (TAC/AFFORD) Commission d) ACWA or CSDA meetings/conferences e) Water Conservation Garden f) WateReuse Association g) South County Economic Development Council 3. The Board President or his designee is pre-authorized to attend District business meetings with cities and other agencies to represent Otay Water District and may claim a per diem and expenses. Any other Director desiring to attend the same meeting of this nature would require approval to attend from the President or the Board in order to receive a per diem and expense reimbursement. 4. When the President or the Board appoints a Director(s) to a committee, the meeting(s) shall be considered pre-approved for per diem and expense reimbursement. 5. The following meetings are not eligible for pre-approved per diem claims: a) Attending other Districts’ Board meetings, unless there is a matter on their agenda that is related to Otay business b) Otay employee appreciation breakfast, luncheons or dinners c) Retirement receptions d) Otay picnics or dinner-dances or other purely social events e) If a per diem reimbursement is offered by another agency (i.e. San Diego County Water Authority and the Metro Commission) f) First Friday Breakfasts unless presenting Otay official business to the assembly EXHIBIT A g) Any political campaign event or function 6. In order to submit a per diem/travel reimbursement the member must attend at least 50% of the meeting (per day) and the reimbursement request must be submitted within 45 days of the occurrence, otherwise it may be considered attended without per diem. The President of the Board will make the final determination. 7. All other meetings/conferences/tours/seminars/ workshops/functions not listed in this policy must be pre-approved by the Board President or the Board. EXHIBIT B (Director’s Signature) GM Receipt: Date: FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ INSTRUCTIONS ON REVERSE OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To: Period Covered: Employee Number: From: To: ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED MILEAGE HOME to OWD OWD to HOME MILEAGE OTHER LOCATIONS Total Meeting Per Diem: $ ($165 per meeting) Total Mileage Claimed: miles EXHIBIT B INSTRUCTIONS FOR PREPARATION OF BOARD OF DIRECTORS PER DIEM CLAIM FORM 1. Record the date, and name or purpose/issues discussed of meeting attended on behalf of the District. Note: The District will pay Director's per-diem for one meeting/ function per day and the maximum of 10 meetings/functions per month. If a Director attends more than 10 meetings/functions (10 days), the District will reimburse for the mileage and any reimbursable out-of-pocket expenses incurred for these additional meetings. 2. Record number of miles (round trip) driven to attend meeting/function. The use of personal vehicles in the conduct of official District business shall be reimbursed at the current Internal Revenue Service rate. The Director's expense claim should indicate the nature of the trip. If a trip begins at home, the District will reimburse the mileage from home to destination and return mileage. District insurance does not cover personal vehicles while they are being driven on District business. The reimbursement rate is inclusive of an allowance for insurance costs. The District will reimburse Directors for the deductible under their personal insurance policy should they be involved in an accident while on District business. To be eligible for reimbursement, each Director shall maintain a current California driver’s license and at least the minimum vehicle liability insurance required by State law or shall arrange for a driver who meets said standards. The District will not reimburse the cost of travel of a personal nature taken in conjunction with travel on official business. Claim forms shall be submitted within 45 calendar days after the meeting date. Expense claims requiring reimbursement to the District which are not reconciled within 45 calendar days, shall be deducted from the next month’s reimbursement. No information on the Per Diem Claim Form may be designated as confidential in nature. All expenses must be fully disclosed on the form. OTAY WATER DISTRICT BOARD OF DIRECTORS TRAVEL REQUEST FORM Director: Date of Request: Name and Location of Function: Date(s) function to be held: - Sponsoring Organization: Request for Prepayment of Fees Related to the Function: Expense Type Not Needed Pre-Payment Requested Registration Airline Auto Rental Mileage N/A Taxi/Shuttle N/A Lodging Meals N/A Other Expenses – Explain Below Lodging Preference: Explanation of Other Expenses: Signature of Director Date of Request For Office Use Only Below This Line Date of Board Approval: Expense Type Description Amount Pre-Paid Registration Airline Auto Rental Mileage N/A Taxi/Shuttle N/A Lodging Meals N/A Other Expenses District Secretary Date Processed EXHIBIT C OTAY WATER DISTRICT BOARD OF DIRECTORS EXPENSE CLAIM FORM Pay To: Period Covered: Employee Number: From: To: ITEMIZED REIMBURSEMENT CLAIMED Date Type of Reimbursement Amount TOTAL Reimbursement Claimed: $ Director Signature: Date: GM Receipt: Date: INSTRUCTIONS ON REVERSE EXHIBIT D INSTRUCTIONS FOR PREPARATION OF BOARD OF DIRECTORS EXPENSE CLAIM FORM The necessary expenses incurred while traveling on District business including common carrier fares (economy class), automobile rental charges, District business telephone calls, lodging, baggage handling, parking fees, meals, etc. will be reimbursed when documented on the Director's Per Diem and Expense Claim Forms. Receipts must be attached for all meal expenses. If a receipt is lost, the lost receipt should be noted next to the expense and submitted to the President before any reimbursement can be made. Receipts are required for the reimbursement of all expenses. All receipts must have the nature of the expense and the business purpose noted on the receipt. The District will not reimburse the cost of travel of a personal nature taken in conjunction with travel on official business. Meals shall be reimbursed as per section 3, Meals and Lodging, of this policy (Policy 8). Any receipts that include costs of personal travel (e.g., hotel receipt for employee and spouse) should identify what the cost would have been without personal travel (e.g., single room rate as opposed to double room rate). Claim forms shall be submitted within 45 calendar days after the expense was incurred. Expense claims requiring reimbursement to the District which are not reconciled within 45 calendar days, shall be deducted from the next month’s reimbursement. No information on the Expense Claim Form may be designated as confidential in nature. All expenses must be fully disclosed on the form. The following expenses are not reimbursable: a. Alcoholic Beverages d. Laundry service b. Parking or traffic violations e. Entertainment or recreation c. In-room movies f. Expenses incurred by spouses, family members, or guests. ND: 4840-9653-1715, v. 2 EXHIBIT D Exhibit E Board of Directors Meetings Attended Form Director Name: Period Covered: From: To: Item No. Date Meeting Attended Description 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. -Instructions on Reverse - Exhibit E Instructions for the Preparation of the Board of Directors Meetings Attended Form 1. Enter the period (dates) of the meetings that will be reported on the form. 2. Record the date, name/purpose of meeting, and issues discussed at the meeting(s) attended on behalf and expense of the District. Board of Directors Meetings Attended Forms shall be submitted to the District Secretary prior to or on the date of the next regular board meeting that follows the dates of the meetings reported on this form. No information on the form may be designated as confidential in nature. This form will be filed with the minutes of the meeting and become part of the board records. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: April 5, 2023 SUBMITTED BY: Lisa Coburn-Boyd Environmental Compliance Specialist PROJECT: P1210 DIV. NO. 5 APPROVED BY: Bob Kennedy, Engineering Manager Michael Long, Chief, Engineering Jose Martinez, General Manager SUBJECT: Approval of Amendment #1 to the Lease Agreement with the County of San Diego for the Otay Water District Fire & Emergency Services Training Facility GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) approves Amendment #1 to the Lease Agreement with the County of San Diego for the Otay Water District Fire & Emergency Services Training Facility and authorizes the General Manager to execute the amendment to the agreement (see Exhibit A for Training Facility location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: That the Board authorizes the General Manager to execute Amendment #1 (see Attachment B) to the Lease Agreement with the County of San Diego for the Otay Water District Fire & Emergency Services Training Facility. AGENDA ITEM 7a 2 ANALYSIS: On June 22, 2018, the County of San Diego entered into a Lease Agreement with the District for the Fire & Emergency Services Training Facility (Training Facility) which is located at the District’s Regulatory Site at 11880 Campo Road, Spring Valley. The original lease for the Training Facility, executed on December 21, 2007, was with the San Miguel Consolidated Fire Protection District (SMFD). SMFD made improvements to the property and added several appurtenances including training props. SMFD surrendered ownership of all appurtenances including improvements or personal property located on the premises, and the District, as Lessor, conveyed ownership of these appurtenances to the County. A copy of the current lease agreement is included as Attachment C. The County contacted the District to discuss an amendment to the existing lease. The amendment decided upon by District and County staff revises Article 4 and Article 10 of the existing lease. The revision to Article 4, Use of Premises, adds language that the Lessee and County Fire Authority’s staff, volunteers, agents, and invitees shall have access and be able to use the Premises at any time upon reasonable prior notice of not less than seventy-two (72) hours to the Lessor. The original lease has this exact language but for the Lessor (District). The revision to Article 10, Assignment and Subletting, is within paragraph 10.1, and adds a number of days (three days) that the Lessor has to notify the County in response to a request for assignment or subletting. If approval or disapproval by the Lessor has not been received by the County within the three day period, this is deemed as consent to the request. Examples of other agencies that might be assigned to use the training center include Heartland Fire, San Miguel Fire, and local colleges such as Miramar College. Access to the site and scheduling of training for these other agencies will be coordinated with a CAL FIRE San Diego County Fire Protection District Fire Captain assigned to the Training Bureau. A County Fire representative would meet the outside agency to provide access to the site. No one will be allowed on the site unless approved by the CAL FIRE San Diego County. There will always be a CAL FIRE San Diego County employee at the training site for safety purposes when any outside agencies are performing the training. All scheduled 3 training will continue to be under CAL FIRE San Diego County control. FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide exceptional water and wastewater service to its customers, and to manage District resources in a transparent and fiscally responsible manner” and the General Manager’s Vision, "To be a model water agency by providing stellar service, achieving measurable results, and continuously improving operational practices." LEGAL IMPACT: None. Attachments: Exhibit A – Project Location Map Attachment A – Committee Action Attachment B – Proposed Amendment #1 to the Lease Agreement – OWD Fire and Emergency Services Training Facility Attachment C – Lease Agreement – OWD Fire & Emergency Training Facility OTAY WATER DISTRICTAPPROVAL OF AMENDMENT #1 TO THE LEASE AGREEMENT WITH THE COUNTY OF SAN DIEGO FOR THE OTAY WATER DISTRICT FIRE & EMERGENCY SERVICES TRAINING FACILITY LOCATION MAP EXHIBIT AC:\Users\donald.bienvenue\OneDrive - Otay Water District\Desktop\Exhibit A- County Training Facility Lease.mxd !\ VICINITY MAP PROJECT SITE DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ÃÅ54 ÃÅ125 ÃÅ94 ÃÅ905 §¨¦805 FNTS TRAINING FACILITY SITE CIP P1210 0 700350 Feet FCAMPO RD (S R-94) C A M P O R D J A M A C H A R D J A M A C H A B L V D ATTACHMENT A SUBJECT/PROJECT: P1210 Approval of Amendment #1 to the Lease Agreement with the County of San Diego for the Otay Water District Fire & Emergency Services Training Facility COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on March 14, 2023. The Committee supported Staff's recommendation. • Staff presented amendment No. 1 to the Lease Agreement with the County of San Diego for the Otay Water District Fire and Emergency Training Facility. • The Committee recalled training held in 2007 at the training facility for Mutual Aid and District staff training (confined space training). Staff clarified that this facility is still used for staff training and fire training. • In response to a question from the Committee, the District does not need to request permission or need County Fire/CalFire on site to use the facility for training, any use needs to be coordinated to ensure there are no conflicts for usage. • In response to a question from the Committee, the District does currently access the training facility. The General Manager further explained that the District is making it easier for other agencies to access the facility by coordinating through County Fire while continuing to maintain access as the District. The amendment just revises the language about notification to County Fire. As a background, San Diego County entered in to the Lease Agreement in 2018 so that it could be used by County Fire. • In response to a question from the Committee, County Fire is under the umbrella of CalFire. CalFire is the main entity but the Lease Agreement is with San Diego County for the use of County Fire and the amendment of the 2018 Lease is to coordinate facility usage. • In response to a question from the Committee, San Miguel Fire was never part of the 2018 Lease Agreement after it ended its original lease with the District. It is the District’s understanding that San Miguel Fire did not have the funds to complete the construction and permits they had open with the County of San Diego for the training facility. • In response to a question from the Committee, County Fire and CalFire, since 2018, has completed work and/or improvements to the facility that was first contemplated with San Miguel Fire. • The Committee inquired about the current infrastructure at the training facility and what is still pending in development. Staff explained that they have expanded the class rooms, they have a “burn box” to safely start fires and put them out, confined space apparatus, pits and mazes for hauling hoses, and devices for hooks and ladders. They also have hydrants but the water pumps from a pit below with pressure to have the water constantly recirculating. It is considered a premium training site for the County. • In response to a question from the Committee, if an agency would like to use the facility, they need to notify County Fire and the District. • In response to a question from the Committee, the last time District staff performed confined space training at the training facility was a few months ago. • In response to a question from the Committee, County Fire uses the facility every day. • In response to a question from the Committee, the County Fire and CalFire’s presence at the training facility does not impede with District activity. They regularly coordinate with the District to ensure that staff can still perform necessary tasks, such as water operations, and avoid traffic at the facility. For example, the District has emergency generators at the facility to perform testing for the pump stations, which is usually coordinated in advance to avoid any conflicts. • The Committee mentioned that at one point, the neighboring Sheriff’s office wanted emergency access through their back parking lot. Staff stated that the development of this secondary access became too cumbersome since there were about five parties involved wanting access to the road: CalTrans, Skyline Church, County Sheriff, San Miguel Fire, and the District. Skyline Church was concerned that by sending additional traffic out through that intersection, it would take away from the ability to further develop their site in the future. The District was also looking at having staff pull out through the signaled intersection instead of Highway 94. The concern is that the number of trucks going through the intersection could take away from the development potential in the future. It is left up to the County to resolve this issue. Upon completion for the discussion, the Committee supported staffs’ recommendation to the full board as a consent item. 1 FIRST AMENDMENT TO LEASE AGREEMENT THIS FIRST AMENDMENT TO LEASE AGREEMENT (“First Amendment”) is dated as of the Effective Date (defined below) and is by and between Otay Water District, a municipal water district organized and existing pursuant to the provisions of the Municipal Water District Law of 1911 (“Lessor”), and the County of San Diego, a political subdivision of the State of California (“County) with reference to the following facts. RECITALS A. Lessor and County entered into a Lease Agreement (“Lease”) on June 22, 2018, for that certain real property known as 11880 Campo Road, Spring Valley, California and consisting of approximately 2.73 acres (the “Premises”). B. Lessor and County wish to amend the Lease in accordance with the terms and conditions set forth in this First Amendment. AGREEMENT NOW, THEREFORE, in consideration of the above recitals and mutual promises contained herein, as of the Effective Date, the parties agree to amend and supplement the lease as follows: 1. AMENDMENT OF LEASE 1.1 Article 4 of the Lease, entitled Use of Premises, is hereby amended to read in its entirety as follows: “Article 4 Use of Premises. The Premises shall be used for fire and emergency services training programs and services for County Fire Authority, Lessor, and other first responders and public agencies ("County's Intended Use"). A representative list of such programs is attached here as Exhibit B "Training Programs". County reserves the right to use the premises for any other comparable use permitted by applicable zoning laws or ordinances, subject to Lessors reasonable prior written approval thereof. Lessee and County Fire Authority’s staff, volunteers, agents and invitees shall have access and be able to use the Premises at any time upon reasonable prior notice of not less than seventy-two (72) hours to the Lessor. Lessor's staff, volunteers, agents and invitees shall have access and be able to use the Premises at any time upon reasonable prior notice of not less than seventy-two (72) hours to County Fire Authority and may participate in training programs pursuant to any conditions agreed upon by Lessor and County.” ATTACHMENT B 2 1.2 Section 10.2 of the Lease, entitled Lessors Consent, is hereby amended to read in its entirety as follows: “10.2 Lessors Consent. County shall not sublet the whole or any part of the premises, nor assign this Lease, without in each case first securing the prior written consent thereto of Lessor. Lessor shall not unreasonably withhold or delay Lessor’s consent to any assignment or subletting and shall notify County of Lessor's decision with respect to the proposed subletting or assignment within three (3) days after County's request therefor. Failure of Lessor to give written notice of Lessor’s approval or disapproval of the proposed subletting or assignment within such period shall be deemed consent by Lessor to the proposed assignment or subletting. If Lessor disapproves of any assignment or subletting, Lessor shall state specifically in Lessor’s response to County the reason for such disapproval.” 2. MISCELLANEOUS 2.1 Effect of Amendment. Except as amended in this First Amendment, the Lease shall remain in full force and effect. In the event of a conflict between the provisions of the Lease and the provisions of this First Amendment, the provisions of this First Amendment shall control. This First Amendment will be binding upon an inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors, and assigns. 2.2 Severability. In the event any one of more of the provisions of this First Amendment will for any reason be held invalid, illegal, or enforceable, the remaining terms and provisions of this First Amendment will not be affected thereby and will remain in full force and effect and be binding upon the parties hereto to the fullest extent permitted by law. 2.3 Entire Agreement. This Frist Amendment, together with the Lease, constitutes the entire agreement between the parties with respect to the subject matter hereof, and supersedes all prior and contemporaneous communications, agreements and understanding of any kind, whether written or oral, with respect thereto. 2.4 Counterparts. This First Amendment may be executed in counterparts, and each counterpart shall constitute one agreement binding on all parties hereto, notwithstanding that all of the parties are not signatory to an original or same counterpart. The parties agree that signatures transmitted via pdf attachment shall be binding as if they were original signatures. 2.5 Electronic Signatures. The words “execution,” “signed,” “signature,” and words of like import shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall have the same legal effect and enforceability as a manually executed signature or the use of a paper-based record keeping system, to the extend provided for in the Uniform Electronic Transaction Act (“UETA”) Civil Code Section 1633.1 – 1633.17. {Signatures on next page} 3 IN WITNESS WHEREOF, County and Lessor have executed this First Amendment as of the day and year written below. This First Amendment shall be effective as of the latest of the dates set forth below (“Effective Date”). COUNTY: County of San Diego, a political subdivision of the State of California By: ________________________________ Marko Medved, Director Department of General Services Date: _______________________________ Approved as to form and legality By: ________________________________ Inna Zazulevskaya, Senior Deputy County Counsel LESSOR: Otay Water District, a municipal water district organized and existing pursuant to the provisions of the Municipal Water District Law of 1911 By: ________________________________ Jose Martinez, General Manager Date: _______________________________ LEASE AGREEMENT OTAY WATER DISTRICT FIRE AND EMERGENCY SERVICES TRAINING FACil,ITY APN: 502-030-51-00 (portion) TENANT: COUNTY OF SAN DIEGO, a political subdivision Of the State of California LESSOR: OTA Y WATER DISTRICT, a municipal water district organized and existing pursuant to the provisions of the Municipal Water District Law of 1911 ATTACHMENT C TABLE OF CONTENTS ARTICLE 1 PREWSES •..•.•..•..•..........••••.•..•......•..•........................•.. _ ..•...........•......••....•..•..•• 1 1.1 1.2 1.3 1.3.1 1.3.2 1.3 1.5 Lease of Premises ......................................................................................................... 1 County's Right to Grant Easements or Rights of Way .................................................. 1 Ownership of Personal Property and Improvements .................................................... 1 Ownership of Personal Property ................................................................................. 1 Ownership of Improvements and Fixtures .................................................................. I Improvements by County .............................................................................................. 2 Access to Premises ........................................................................................................ 2 ARTICLE 2 1'ERM ........................................................................................................................ _ 2 2.1 Term .............................................................................................................................. 2 2.2 County's Option to Extend ........................................................................................... 2 2.2 Early Tennination Rights .............................................................................................. 2 2.4 HoJding Over ................................................................................................................ 3 ARTICLE 3 RENT ••.••.•••••••••••••••.•.•.•••..•.•.•••••.•..••••••.••.•••••.••...•••.•..••.•.••.•..••.....•••...•........•••.•••••. 3 ARTICLE 4 USE OF PREMISES·······················-································································· 3 ARTICLE S Q"UIET ENJOYI\IIENT ....................................................................................... 3 ARTICLE 6 MAINTENANCE AND REP AIR OBLIGATIONS ........................................ 4 6.1 Maintenance Services Furnished by County ................................................................. 4 6.2 Repairs .......................................................................................................................... 4 6.3 Certified Access Specialist Inspection .......................................................................... 4 ARTICLE 7 UTaITIES .•..•.••....•.................•..•.................•.....................••........•....................• 4 ARTICLE 8 IN'SURANCE .................................................................................................................. 4 8.1 Lessor's Insurance Obligations ..................................................................................... 4 8.2 County's Insurance Obligations .................................................................................... 4 ARTICLE 9 .IN'DEMNITY ···-·················-······························-····· ..................... -............... -••.• 5 9.1 Lessor's Indemnity ........................................................................................................ 5 9.2 County's lndenmity ....................................................................................................... 59.3 Covered Claims ............................................................................................................. 5 ARTICLE 10 ASSIGNMENT AND SUBLETTIN'G .............................................................. 5 10.1 Lessor's Consent ........................................................................................................... 510.2 Pennitted Transfers ....................................................................................................... 5ARTICLE 11 TAXES ................................................................................................................ 5 ARTICLE 12 COMPLIANCE WITH LAWS; SAFETY REQUIREMENTS ..................... 6 12.1 Lessor's Warranty ......................................................................................................... 6 12.2 County's Tennination Rights ........................................................................................ 6 ARTICLE 13 HA.ZARDOUS MATERI.ALS ••••••••••••.••••..•••.•.•••••••..•.•.•..••••.•••..••.•..•.••••..•.•••••••• 6 13.1 Hazardous Materials Laws -Definition ........................................................................ 6 13.2 Hazardous Materials -Definition .................................................................................. 6 13.3 Lessor's Representations and Warranties ...................................................................... 7 ARTICLE 14 LESSOR'S ACCESS TO PREMISES .............................................................. 8ARTICLE 1S AFFIRMATIVE ACTION PROGRAM FOR DISABLED PERSONS ........ 8ARTICLE 16 GENERAL PRO'VISIONS ................................................................................ 8 16.1 Authority ....................................................................................................................... 8 16.2 Captions ........................................................................................................................ 816.3 County Approval ........................................................................................................... 8 16.4 Cumulative Remedies ................................................................................................... 9 16.5 aDtire Agreement .......................................................................................................... 9 16.6 Governing Law ............................................................................................................. 9 16. 7 Modification .................................................................................................................. 916.8 Notices .......................................................................................................................... 9 16.9 Partial Invalidity ............................................................................................................ 9 16.1 O Successor and Assigns .................................................................................................. 9 16.11 Ti.me of Essence .......................................................................................................... 10 16.12 Waiver ......................................................................................................................... 10 16.13 Contingency ................................................................................................................ 10 EXIDBITS A PREMISES AND ACCESS ROAD ii OTAYWATERDISTRICT FIRE AND EMERGENCY SERVICES TRAINING FACILITY �S LEASE AGREEMENT ("Lease") is made and entered into effective as of{:,/42 ye ("Commencement Date"), by and between Otay Water District, a municipal waterdistrict organized and existing pursuant to the provisions of the Municipal Water District Law of1911, ("Lessor"), and the COUNTY OF SAN DIEGO, a political subdivision of the State ofCalifornia ("County").ARTICLE I PREMISES 1.1 Lease of Premises. Lessor hereby leases to County and County hereby leases fromLessor, for the rent and upon the covenants and conditions hereinafter set forth, the Premisesdelineated on Exhibit "A" attached hereto and by this reference made a part hereof. SaidPremises consist of approximately 2.73 acres ofland, a portion of Assessor's Parcel Numbers502-030-51-00 and 508-010-10-00 (the •'Property"), located at 11880 Campo Road, SpringValley, and further delineated on Exhibit A. Except as expressly provided to the contrary in thisLease, references to the "Premises" are to the described land only.1.2 County's Right to Grant Easements or Rights of Way. Lessor grants to County theright to grant public entities or public service corporations, for the purpose of serving thePremises for its permitted use, rights of way or easements on or over the Premises for poles orconduits or both for telephone, electricity, water, sanitary or storm sewers or both, and for otherutilities and municipal or special district services. Grants made under the authority of thisSection shall be limited to the Tenn.1.3 Ownership of Personal Property and Improvements. The rights and obligations ofthe parties regarding the ownership of personal property and Improvements on the Premises,shall be as follows:1.3 .1 Lessor's previous Lessee, San Miguel Consolidated Fire ProtectionDistrict ("SMG"), has surrendered ownership of the appurtenances, including improvements orpersonal property now located on the Premises. .1.3.2 As of the Commencement Date, Lessor conveys ownership of theseappurtenances to the County and the County accepts such appurtenances.1.3 .3. Ownership of Personal Pzo.perty. Subject to the provisions of the followingSection 1.3.4, "Ownership oflmprovements and Fixtures", all of County's furniture, furnishings,signs and other personal property not permanently affixed to the Premises or to anyImprovements ( collectively referred to as "Personal Property" in this Lease) shall remain theproperty of County.1.3.4 Ownership of Improvements. All appurtenances existing on theCommencement Date, including approximately 60,000 square-feet of concrete, six ( 6) firehydrants, 2' trench drain, 3' wide drainage ditch, retaining walls, 3' concrete ribbon gutter,1 concrete swale, 10,000 gallon commercial draughting pit, battery sand-oil interceptor, con.fined space prop, ventilation prop, depressed prop for live tire, highway overpass prop, electrical service and backflow, or any other improvements constructed by County during the Term, together with all fixtures permanently attached to the Premises or to any improvements located thereon (collectively referred to in this Lease as "Improvements"), shall remain the property of County during the Term. Should this Lease be terminated by County or Lessor, ownership of all improvements in place upon termination of the Lease shall at Lessor's discretion revert to Lessor or be removed by County at County's sole cost and expense. 1.4 Improvements by County. At the County's discretion, County may, at its sole cost and expense, construct any or all of the improvements, facilities, or related amenities allowed under Major Use Permit 3300-09-007 dated October 22, 2010. Neither County nor Lessor shall make any other alterations, improvements or additions in or about the Premises without the prior written consent of the other party. 1.5 Access to Premises._Lessor grants County the right to use Lessor's existing improved access road ("Access Road") from Highway 94, through Lessor's existing facility, to the Premises, as shown on Exhibit A, attached hereto. County shall not be required to construct or improve an alternate access route to the Premises or to further improve the existing Access Road, but County shall participate in the maintenance and/or repair of the Access Road, by contributing fifty (50%) percent of any and all future maintenance and/or repair costs for said Access Road during the Term of this Lease. ARTICLE2 TERM 2.1 Term. The term (''Term") of this Lease shall be three hundred sixty (360) months (the "Initial Term"), commencing upon the Commencement Date. 2.2 County's Option to Extend. County shall have the option to extend the Term for an additional two hundred forty (240) month period (the "Option Term") upon three hundred sixty five (365) days' prior written notice to Lessor, provided that County is using the Premises for the training programs and services set forth in Article 4 "Use of Premises" below. 2.3 Early Tennination. (a)This Lease may be terminated by County, at its sole option and without penalty, upon three hundred sixty-five (365) days' prior written notice to Lessor. (b)Lessor may terminate this Lease upon one-hundred eighty (180) days' prior written notice to County if County abandons or discontinues its use of the Premises, or if County transfers operation of the Improvements to another entity without Lessor's prior written consent. In the event the Lease is terminated, County shall remove all personal property and equipment, and surrender the Premises and Improvements thereon, without warranty, to Lessor, subject to the provisions of Article 1.3.4. above. 2 2.4 Holding Over. The Term of this Lease shall expire without further notice at the expiration of the Term specified in Section 2.1. ff County holds over in occupancy of the Premises, or any portion of the Premises, after the expiration of the Term without Lessor's written consent, County shall become a month-to-month tenant Any such holdover shall be subject to the terms and conditions specified in this Lease, so far as applicable. Any holding over after the expiration of the Term sh.all not constitute a renewal or extension of this Lease, except as specified in this Lease or when in writing signed by both parties to this Lease. During any holdover after the expiration of the Term, the County shall continue to indemnify Lessor in accordance with Article 9, INDEMl'1ITY. The inclusion of this reference does not affect any provisions in the balance of this Lease. Lessor agrees to consent to any written holdover request by County for any lawful reasonable purpose for a period not to exceed one (1)year. County shall pay to Lessor as rent the sum of one dollar ($1.00) for the Tenn. County shall pay rent by depositing a County warrant by First Class Mail, postage prepaid, addressed to Lessor at the address stated in Section 19.8. ARTICLE4 USE OF PREMISES The Premises shall be used for fire and emergency services training programs and services for County Fire Authority, Lessor, and other fust responders and public agencies ("County's Intended Use"). A representative list of such programs is attached here as Exhibit B "Training Programs". County reserves the right to use the Premises for any other comparable use permitted by applicable zoning laws or ordinances, subject to Lessor's reasonable prior written approval thereof. Lessor's staff, volunteers, agents and invitees shall have access and be able to use the Premises at any ti.me upon reasonable prior notice of not Jess than seventy two (72) hours to County Fire Authority and may participate in training programs pursuant to any conditions agreed upon by Lessor and County. ARTICLES QUIET ENJOYMENT Upon County's paying rent and performing its other obligations hereunder, County shall peacefully and quietly have, hold and enjoy the Premises throughout the Term and any extensions thereof, without hindrance by Lessor or any person lawfully claiming through or under Lessor. ARTICLE6 3 MAINTENANCE AND REP AIR OBLIGATIONS 6.1 Maintenance Services Furnished by County. County shall be responsible, at its sole expense, for furnishing to the Premises all services that may be required by County's occupancy and use of the Premises. Such services may include, but are not limited to, maintenance of Improvements, custodial and trash removal services, landscape maintenance, graffiti and brush removal, and contributing fifty (50%) percent of any and all future maintenance and/or repair costs for said Access Road during the Term of this Lease subject to Section 1.3 above. 6.2 Repairs. (a)Subject to the provisions of this Lease pertaining to damage ordestruction of the Premises, Com1ty shall. at all times and at its sole expense keep the Premises and Improvements in good order, condition and repair, such that the same are at all times in good and tenantable condition. 6.3 Certified Access Specialist Inspection. Pursuant to the provisions of California Civil Code section 1938, the Premises bas not undergone inspection by a Certified Access Specialist to determine whether the Premises meets all applicable construction-related accessibility standards pursuant to California Civil Code section 55.53. ARTICLE7 UTILITIES County shall furnish to the Premises, and pay for at all times during the Term, all utilities necessary for the use and enjoyment by County of the Premises for County's Intended Use. Such utility services may include, but are not necessarily limited to, water, electricity, phone, cable, internet, and sewage service. County shall be responsible for installing utility infrastructure needed for County's operation of the facility, if not existing on the Effective Date. Lessor hereby approves of the County's installatio� at County's sole cost and expense, of sewer service, a septic system, or portable toilets on the Premises to serve the Improvements. ARTICLES INSURANCE 8.1 Lessor's Insurance Obligations. Lessor shall maintain in effect during the Term adequate insurance as required by law, or may self-insure, in connection with any activities of Lessor to be performed or carried out on the Premises or the Improvements. 8.2 County's Insurance Obligations. County shall maintain a policy of All-Risk Insurance covering the County's personal property in the Premises, including any fixtures or equipment in the Premises owned by County. The County may utilize a program of self-funding with regard to any liability it may incur for personal injury or property damage arising out its use or occupancy of the Premises. 4 ARTICLE9 INDEMNITY ARTICLE to ASSIGNMENT AND SUBLETTING ARTICLE 11 TAXES County shall not obligated to pay any taxes accruing before, during or after the Term, or any extension thereof, on the Premises; all such payments shall be the sole responsibility of Lessor. As used herein, the term taxes" means all taxes, governmental bonds, special assessments, Mello-Roos assessments, charges, rental income or transfer taxes, license and transaction fees, including, but not limited to, (i) any state, local, federal, personal or corporate income tax, or any real or personal property tax, (ii) any estate inheritance taxes, (iii) any franchise, succession or transfer taxes, or (iv) interest on taxes or penalties resulting from Lessor's failure to pay taxes. However, Lessor shall not be obligated to pay any taxes incurred by County's subtenants, assignees, concessionaires, and/or licensees. COMPLIANCE WITH LAWS; SAFETY REQUIREMENTS 12.1 Lessor's Warranty. Lessor warrants that, to Lessor's knowledge and belief, as of the Commencement Date, there are no violations of any laws or orclinances, or of rules or regulations of insurance-rating organizations, which would materially affect County's use or occupancy of the Premises, and that County's Intended Use of the Premises is in compliance with all existing laws and insw-ance policies affecting the Premises. 12.2 County's Termination Rights. ff County's Intended Use of the Premises shall be prohibited at any time during the Term or any extensions thereof by any federal, state or local statute, ordinance or regulation. the Term shall automatically tenninate as of the effective day of such prohibition and all rent owing under this Ground Lease shall be equitably pro-rated on a per diem basis as of the date of such termination; provided, however, that County may elect to continue as the tenant on the Premises in the event that such prohibition of County's Intended Use does not also prohibit another comparable use permitted by applicable zoning laws or ordinances, subject Lessor's reasonable written approval thereof. ARTICLE13 HAZARDOUS MATERIALS 13.1 Hazardous Materials Laws -Definition. As used in this section, the term "Hazardous Materials' Laws" means any and alJ federal, state or local laws or ordinances, rules, permits, decrees, orders, regulations or court decisions (including the so-called "common law") relating to hazardous substances, hazardous materials, hazardous waste, toxic substances, environmental conditions on, under or about the Premises, soil and ground water conditions or other similar substances or conditions, including, without limitation, those hazardous or toxic substances identified the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, 13.2 Hazardous Materials -Definition. As used in this section the tenn "Hazardous Materials" means any chemical, compound, material, substance or other matter the presence of which gives rise to any reporting, notice or publication requirements, or duty to investigate, under any Hazardous Materials Laws; provided, however, that office and cleaning supplies in amounts normal and customary for the Premises shall not be considered as Hazardous Materials. Lessor is responsible for ensuring that provisions are in place for handling any hazardous materials under the control of the Lessor ( or their contractors) in a manner to minimize exposure incidents and that Material Safety Data Sheets (MSDSs) will be made available to County employees for hazardous materials involved in a renovation/construction/emergency incident. County is responsible for ensuring that provisions are in place for handling any hazardous materials under the control of the County, its subtenants, assignees concessionaires, and/or licensees, to minimize exposure incidents and that Material Safety Data Sheets (MSDSs) will be made available to Lessor for any hazardous materials usage. 13.3 Lessor's Representations and Warranties. Lessor represents and warrants that, other than as disclosed to County and specifically approved in writing by County's Lease Administrator: (a)Lessor has received no notice from any governmental agency of violation,or suspected or possible violation, of any Hazardous Materials Laws with respect to the Premises or the Property, and there has at no time been a government-supervised cleanup or remediation of Hazardous Materials on the Premises; (b)to the best of Lessor's knowledge, any handling, transportation, storage,treatment or usage of Hazardous Materials that has occurred on the Premises prior to the Commencement Date has been in compliance with all applicable Hazardous Materials Laws; ( c)no leaks, spills, releases, discharges, emissions or disposal of HazardousMaterials have occurred on the Premises prior to the Commencement Date, and, to the best of Lessor's knowledge, the soil, ground water, and soi] vapor on or under the Premises is free of Hazardous Materials as of the Commencement Date; 13.4 County's Representations and Warranties. Cowity represents and warrants that for the duration of the term of the Lease, it will defend and indemnify Lessor and hold it hmmless from and against any Claims related to this Lease or County's (including its contractors, licensees, invitees, agents, servants and employees,) occupancy or use of the Premises, which arise from: (a)Receipt of notice from any governmental agency of violation, or suspectedor possible violation, of any Hazardous Materials Laws with respect to the Premises or the Property, or if there is a government-supervised cleanup or remediation of Hazardous Materials on the Premises. (b)Any and all handling, transportation, storage, treatment or usage ofHazardous Materials that occurs on the Premises during the term of the Lease that does not comply with all applicable Hazardous Materials Laws; ( c)Leaks, spills, releases, discharges, emissions or disposal of HazardousMaterials that occurs on,the Premises prior during the term of the Lease or any contamination of 7 ARTICLE14 LESSOR'S ACCESS TO PREMISES ARTICLElS COMPLIANCE WITH LAWS FOR HIRING DISABLED PERSONS ARTICLE 16 GENERAL PROVISIONS 8 16.4 Cumulative Remedies. In the event of a default under this Lease, each party's remedies shall be limited to those remedies set forth in this Lease; any such remedies are cumulative and not exclusive of any other remedies under this Lease to which the non-defaulting party may be entitled. 16.5 Entire Agreement. This Lease, together with any addenda, exhibits and riders attached hereto, constitutes the entire agreement between the parties with respect to the subject matter hereof, and all prior or contemporaneous agreements, understandings and representations, oral or written, are superseded. 16.6 Governing Law. This Lease shall be governed, construed and enforced in accordance with the laws of the State of California. 16. 7 Modification. The provisions of this Lease may not be modified, except by awritten instrument signed by both parties. 16.8 Notices. All notices, demands, requests or other communication required or permitted to be given hereunder ("Notices") shall be in writing and (i) delivered in person to an officer or duly authorized representative of the other party, or (ii) sent by First Class United States Mail, postage prepaid to Lessor and County at the appropriate address set forth below, or to such other address as Lessor or County may hereafter designate by written notice to the other party. Any such Notice shall be deemed duly given upon receipt if delivered as set forth under (i), above, or, in case of (ii) above, forty-eight ( 48)_ hours from the time of mailing if mailed as provided in this section. Lessor's address for notice: Otay Water District 2554 Sweetwater Springs Boulevard Spring Valley, California 91978 Attention: General Manager C01mty's Address for notice: Director Department of General Services 5560 Overland A venue, Suite 410 San Diego, California 92123 16.9 Partial Invalidity. If any provision of this Lease is determined by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Lease shall not be affected thereby. Each provision shall be valid and enforceable to the fullest extent pennitted by law. 16.10 Successor and Assigns. This Lease shall be binding on and inure to the benefit of the parties and their successors and assigns, except as may otherwise be provided herein. 9 16.11 Time of Essence. Time is of the essence of each and every provision of this Lease. 16.12 Waiver. No provision of this Lease or the breach thereof shall be deemed waived, except by written consent of the party against whom the waiver is claimed. 16.13 Contingency. Notwithstanding anything to the contrary contained herein, this Lease shall be contingent upon the tennination of the Ground Lease and Joint Use Agreement entered into on December 21, 2007 between Lessor and San Miguel Consolidated Fire Protection District ("Agreement"). If the Agreement has not been tenninated as of the Effective Date, this Lease shall be of no force or effect. IN WITNESS WHEREOF, County and Lessor have executed this Lease effective as of the date first written above. COUNfY: COUNTY OF SAN DIEGO, a Political subdivision of the State of California By:� W MARK.�.E., CEM, Director Department of Gener� Services Approved as to form and legality By:�Shiri Hoff man, Senior Deputy County Counsel 10 LESSOR: OTAY WATER DISTRICT, a municipal water district organiz.ed and existing pursuant to the provisions of the Municipal Water District Law of 1911 MARK WATTON, General Manager d es to f mm and I gality / l Vi/\JY\., �y 1.Structural2.Wildland3.Rescue4.Command5.Management6.Driving7.Pumping8.Fire Control9.ffimtrdous Materials10.Prevention11.Investigation12.Public Education13.CERT14.Instructor15.EMS EXHIBIT "B" TRAINING PROGRAMS B-1 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: April 5, 2023 SUBMITTED BY: Kevin Cameron Engineering Manager PROJECT: Various DIV. NO. All APPROVED BY: Bob Kennedy, Engineering Manager Michael Long, Chief, Engineering Jose Martinez, General Manager SUBJECT: Award two (2) Professional Services Contracts for As-Needed Electrical Engineering Consulting Services to BSE Engineering, Inc. and Engineering Partners, Inc. for Fiscal Years 2023-2025 GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) award two (2) professional service agreements for As-Needed Electrical Engineering Consulting Services and to authorize the General Manager to execute two agreements with BSE Engineering, Inc. (BSE) and Engineering Partners, Inc. (EPI), each in an amount not-to-exceed $400,000. The total amount of the two (2) contracts will not exceed $400,000 during Fiscal Years 2023-2025 (ending June 30, 2025). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to enter into two (2) professional services agreements for As-Needed Electrical Engineering Consulting Services with BSE and EPI, each in an amount not-to-exceed $400,000. The total amount of the two (2) contracts will not exceed $400,000 during Fiscal Years 2023-2025. AGENDA ITEM 7b 2 ANALYSIS: The District will require the services of two (2) professional electrical engineering consultants on an as-needed basis in support of Capital Improvement Program (CIP) projects for Fiscal Years 2023-2025. It is more efficient and cost effective to issue two as-needed contracts for electrical engineering services, which will provide the District with the ability to obtain consulting services in a timely and efficient manner. This concept has also been used in the past for other disciplines, such as construction management, geotechnical, engineering design, and environmental services. The District staff will identify tasks and request cost proposals from the two (2) consultants during the contract period. Each consultant will prepare a detailed scope of work, schedule, and fee for each task order, with the District evaluating the proposals based upon qualifications and cost. The District will enter into negotiations with the consultants, selecting the proposal that has the best value for the District. Upon written task order authorization from the District, the selected consultant shall then proceed with the project, as described in the scope of work. The CIP projects that potentially require electrical engineering services for Fiscal Years 2023-2025, and estimated costs, are listed below: CIP DESCRIPTION ESTIMATED COST P2563 870-2 Reservoir Cover/Liner Replacement and Supporting Projects $30,000 P2630 624-3 Reservoir Automation of Chemical Feed System $15,000 P2658 832-1 Pump Station Modifications $20,000 P2676 980-2 PS Miscellaneous Replacements $50,000 P2683 Pump Station Safety, Monitoring, and Automation Improvements $50,000 P2684 Zero Emission Vehicles and Charging Infrastructure $75,000 S2060 Steele Canyon Pump Station Replacement $35,000 S2061 RWCWRF Aeration Controls Consolidation & Optimization Upgrades $25,000 S2069 Cottonwood Sewer Pump Station Renovation $50,000 TOTAL: $350,000 Staff believes that a $400,000 cap on the As-Needed Electrical Engineering Consulting Services contract is adequate, while still 3 providing a buffer for any unforeseen tasks. Fees for professional services will be charged to the CIP projects. The As-Needed Electrical Engineering Services contracts do not commit the District to any expenditure until a task order is approved to perform the work. The District does not guarantee work to the consultants, nor does the District guarantee to the consultants that it will expend all the funds authorized by the agreement for professional services. The District solicited electrical engineering consulting services by placing an advertisement on the Otay Water District’s website and using Periscope S2G, the District’s online bid solicitation website, on November 11, 2022. Ten (10) firms submitted a Letter of Interest and a Statement of Qualifications. The Request for Proposal (RFP) was sent to all ten (10) firms resulting in seven (7) proposals received on January 12, 2023. They are as follows: • BSE Engineering (San Diego, CA) • Enterprise Engineering, Inc. (Poway, CA) • Engineering Partners, Inc. (San Diego, CA) • Eramosa (Overland Park, KS) • Michael Baker International (Santa Ana, CA) • Salas O’Brien (Vista, CA) • Vektor Engineering (San Ramon, CA) Firms that submitted Letters of Interest (LOI), but did not propose, were Borrelli & Associates, Inc. and Lee & Ro; Alisto Engineering submitted a proposal a day after the deadline, which was considered non-responsive. In accordance with the District’s Policy 21, staff evaluated and scored all written proposals and interviewed the top five (5) firms on February 16, 2023. BSE & EPI received the highest scores based on their experience, understanding of the scope of work, proposed method to accomplish the work, and their composite hourly rate. BSE and EPI are currently under contract with the District for this service, and both consultants have provided similar services to other local agencies. A summary of the complete evaluation is shown in Attachment B. Both BSE and EPI submitted Company Background Questionnaires, as required by the RFP, and staff did not find any significant issues. In addition, staff checked their references and performed an internet search on both companies. Staff found the references to be excellent and did not find any outstanding issues with the internet search. 4 FISCAL IMPACT: Joe Beachem, Chief Financial Officer The funds for these contracts will be expended on a variety of projects, as previously noted above. These contracts are for as- needed professional 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 consultant's services on a specific CIP project. Based on a review of the financial budget, the Project Manager anticipates that the budgets will be sufficient to support the professional as-needed consulting services required for the CIP 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." GRANTS/LOANS: Not applicable. LEGAL IMPACT: None. Attachments: Attachment A – Committee Action Attachment B – Summary of Proposal Rankings ATTACHMENT A SUBJECT/PROJECT: Various Award two (2) Professional Services Contracts for As-Needed Electrical Engineering Consulting Services to BSE Engineering, Inc. and Engineering Partners, Inc. for Fiscal Years 2023-2025 COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on March 14, 2023. The Committee supported Staff's recommendation. • Staff requested to enter into two (2) professional service agreements with BSE Engineering, Inc. (BSE) and Engineering Partners, Inc. (EPI) for as-needed electrical engineering services in an amount not to exceed $400,000.00 each for Fiscal years 2023-2025. • In response to a question by the Committee, the process for the RFP (request for proposals) is completed by posting an advertisement, which 10 firms were interested in this particular project. The District ensured that the 10 firms were qualified. Staff reviewed the work that the firms perform and sort out the ones that match the type of work that is required by the District, then the RFP is sent to the firms. Of those, seven firms responded with a written proposal. According to Policy No. 21, since the amounts are over $200,000.00, interviews are required. The top proposals are then shortlisted for the interviews. • In response to a question by the Committee, there are five District panel members that evaluate the proposals and interviews, each from different Departments, to further ensure they are not familiar with the firms that are being interviewed and only focusing on the qualifications. The District shares the scores from the interviews with the firms to allow for transparency. Not many other agencies publish this type of information with firms. • In response to a question by the Committee, the District has received less construction bids, however, consultant bids do receive a lot of interest. Since it is a lot of effort for consultants to put the proposals together, the District has witnessed a lot of drop offs, in addition, many consultants have 6 expressed being too busy to handle the work or short-staffed to complete the project. • In response to a question by the Committee, the firms have worked with the District in the past and have also worked with many other water agencies. Both firms are also locally based. Upon completion for the discussion, the Committee supported staffs’ recommendation to the full board as a consent item. Qualifications of Team Responsiveness and Project Understanding Technical and Management Approach INDIVIDUAL TOTAL - WRITTEN AVERAGE WRITTEN TOTAL Consultant's Commitment to DBE Additional Creativity and Insight Strength of Project Manager Presentation & Communication Skills Responses to Questions INDIVIDUAL TOTAL - ORAL AVERAGE ORAL TOTAL TOTAL SCORE WITHOUT FEE Proposed Fee1&2 TOTAL SCORE 30 25 30 85 85 Y/N 15 15 10 10 50 50 135 15 150 Poor/Good/ Excellent Kevin Cameron 27 23 26 76 13 13 9 8 43 Stephanie Chen 26 23 26 75 13 13 9 9 44 M. O'Donnell/B. DiPietro 26 23 28 77 14 13 9 9 45 Juan Tamayo 25 23 25 73 14 13 9 9 45 Jeff Marchioro 28 24 28 80 14 15 10 9 48 Kevin Cameron 26 22 25 73 13 12 7 7 39 Stephanie Chen 23 21 23 67 12 12 7 7 38 M. O'Donnell/B. DiPietro 26 22 26 74 12 11 7 7 37 Juan Tamayo 25 23 26 74 13 12 8 9 42 Jeff Marchioro 26 19 24 69 13 12 8 9 42 Kevin Cameron 27 24 27 78 13 14 9 8 44 Stephanie Chen 26 23 25 74 13 13 7 7 40 M. O'Donnell/B. DiPietro 26 23 28 77 13 13 9 8 43 Juan Tamayo 24 24 25 73 13 14 7 9 43 Jeff Marchioro 28 24 28 80 14 14 8 8 44 Kevin Cameron 23 20 21 64 Stephanie Chen 23 20 22 65 M. O'Donnell/B. DiPietro 24 23 24 71 Juan Tamayo 23 21 24 68 Jeff Marchioro 25 22 24 71 Kevin Cameron 24 22 24 70 12 12 6 6 36 Stephanie Chen 24 23 24 71 11 10 5 5 31 M. O'Donnell/B. DiPietro 27 24 26 77 10 10 6 7 33 Juan Tamayo 25 21 24 70 12 11 7 7 37 Jeff Marchioro 27 24 26 77 11 11 7 7 36 Kevin Cameron 26 23 26 75 12 12 8 7 39 Stephanie Chen 24 23 23 70 12 12 8 8 40 M. O'Donnell/B. DiPietro 26 24 24 74 11 12 7 7 37 Juan Tamayo 25 22 23 70 12 12 7 7 38 Jeff Marchioro 24 22 24 70 11 12 7 6 36 Kevin Cameron 23 20 23 66 Stephanie Chen 21 22 21 64 M. O'Donnell/B. DiPietro 23 21 22 66 Juan Tamayo 24 20 25 69 Jeff Marchioro 23 19 21 63 Notes: Consultant Weighted Fee Score 1. Review Panel does not see or consider proposed fee when scoring other categories. The proposed fee is scored by Engineering staff not on the Review Panel. BSE Engineering $172 8 2. The fees were evaluated by comparing weighted rates for six positions. The sum of the weighted rates are noted on the table to the left. Enterprise Engineering $164 10 Engineering Partners $140 15 Eramosa $143 14 Michael Baker $205 1 Salas O'Brien $182 6 Vektor Engineering $163 10 NOT INTERVIEWED NOT INTERVIEWED 68 7666 6 119 14 10 129 121 134 82 109 116 REFERENCES 76 Y 71 Excellent Y 10 15 Excellent FEE SCORING CHART Vektor Engineering 66 Y68 Y Y Michael Baker Y ATTACHMENT B SUMMARY OF PROPOSAL RANKINGS FY2023-2025 As-Needed Electrical Engineering Consulting Services WRITTEN ORAL 108 121 72 38 110Salas O'Brien BSE Engineering, Inc.76 Y 35 43 8 73 MAXIMUM POINTS Enterprise Engineering (EEI) Engineering Partners, Inc. (EPI) Eramosa 1 45 40 111 Administration: Keene Simonds, Executive Officer 2550 Fifth Avenue, Suite 725 San Diego, California 92103 T 619.321.3380 E lafco@sdcounty.ca.gov www.sdlafco.org Chair Jim Desmond County of San Diego Joel Anderson County of San Diego Nora Vargas, Alt. County of San Diego San Diego County Local Agency Formation Commission Regional Service Planning | Subdivision of the State of California Jo MacKenzie Vista Irrigation Barry Willis Alpine Fire Protection David A. Drake, Alt. Rincon del Diablo Kristi Becker City of Solana Beach Dane White City of Escondido John McCann, Alt. City of Chula Vista Andy Vanderlaan General Public Harry Mathis, Alt. General Public Vice Chair Stephen Whitburn City of San Diego Marni von Wilpert, Alt. City of San Diego CORRECTED BALLOT AND VOTE CERTIFICATION FORM March 8, 2023 TO: Independent Special Districts in San Diego County FROM: Tamaron Luckett, Commission Clerk SUBJECT: Ballot and Vote Certification Form | Election to Regular and Alternate Special District on LAFCO Commission On December 19, 2022, the San Diego Local Agency Formation Commission (LAFCO) solicited nominations for (a) one regular and (b) one alternate special district member to serve on the LAFCO Commission. A total of five nominations were received following a 60-day filing period: (a) three regular members; and (b) two alternate members. The term is four years and commences on May 1, 2023. Note there was a correction to the alternate nominee Jeff Griffith he is with Palomar Healthcare District. San Diego LAFCO is now issuing ballots to all 57 independent special districts in San Diego County and inviting each district to cast a ballot. Write-in candidates are permitted, and spaces have been provided for that purpose. Only cast one vote for each nominee on the ballot and vote certification form; a ballot that is cast for more than indicated number of positions the vote will be disregarded. The ballot and vote certification form along with nominee resumes provided by the candidates are attached. State Law specifies a district’s vote is to be cast by its presiding officer, or an alternate member designated by the board and a valid signature is required on the ballot. A ballot received without a signature will be voided. A minimum of 29 ballots must be received to certify that a legal election was conducted. A candidate for a special district LAFCO Commission member must receive at least a majority of the votes cast to be elected. The ballots will be kept on file in this office and will be made available upon request. Ballots may be submitted by mail, courier, hand delivered, FAX or via email to tamaron.luckett@sdcounty.ca.gov, include “Special District LAFCO Ballot” and your “District Name” in the subject title, if necessary to meet the submission deadline, but the original for must be submitted. The deadline for receipts of the ballots by LAFCO is Friday, April 14, 2023, any ballots received after the deadline will be voided. All election materials will be available on the website: www.sdlafco.org. Should you have any questions, please contact me at 619-321-3380. Tamaron Luckett, Commission Clerk AGENDA ITEM 8a 4 | Page Blank Page for Photocopying Corrected March 8, 2023 CORRECTED 2023 SPECIAL DISTRICTS ELECTION BALLOT and VOTE CERTIFICATION FOR REGULAR LAFCO SPECIAL DISTRICT MEMBER VOTE FOR ONLY ONE James Pennock [ ] (Vallecitos Water District) Ross Pike [ ] (North County Fire Protection District) Barry Willis1 [ ] (Alpine Fire Protection District) Write-Ins [ ] [ ] As presiding officer or his/her delegated alternate as provided by the governing board, I hereby certify that I cast the votes of the (Name of Independent Special District) at the 2023 Special Districts Selection Committee Election. (Signature) (Print Name) (Date) (Print Title) Please note: The order in which the candidates’ names are listed was determined by random selection. The Ballot and Vote Certification form can be submitted electronically to: tamaron.luckett@sdcounty.ca.gov. 1 Incumbent member ATTACHMENT ONE 4 | Page Blank Page for Photocopying Corrected March 8, 2023 CORRECTED 2023 SPECIAL DISTRICTS ELECTION BALLOT and VOTE CERTIFICATION FOR ALTERNATE LAFCO SPECIAL DISTRICT MEMBER VOTE FOR ONLY ONE David Drake1 [ ] (Rincon del Diablo Municipal Water District) Jeff Griffith [ ] (Palomar Healthcare District) Write-Ins [ ] [ ] As presiding officer or his/her delegated alternate as provided by the governing board, I hereby certify that I cast the votes of the (Name of Independent Special District) at the 2023 Special Districts Selection Committee Election. (Signature) (Print Name) (Date) (Print Title) Please note: The order in which the candidates’ names are listed was determined by random selection. The Ballot and Vote Certification form can be submitted electronically to: tamaron.luckett@sdcounty.ca.gov. 1 Incumbent member ATTACHMENT ONE 4 | Page Blank Page for Photocopying Blank for Photocopying Blank for Photocopying Blank for Photocopying EDUCATION Baron T. Willis btwi11is9@gmail.com U.C. Berkeley/ University of California, San DiegoMajor: Pre-Law Program/Bachelor of Arts in Political ScienceMinor: Psychology College for Financial Planning Chartered Retirement Planning Counselor Designation 2017-2023 Kaplan Financial Education Series 7 Stock Broker License Chelsea Financial Services Broker Training Programs Life Insurance and Financial Planning, (Multi-State) COMMUNITY INVOLVEMENT: Commissioner-San Diego LAFCO 2019-Present 2S50 Fifth Avenue Suite 72S San Diego, CA 92103 619.321.3380 Alpine Fire Protection District Board Vice President 2023 -2027 Board Member -2018 -2022 Alpine Kiwanis Member -2018 -Present Board Member 2019-Present East County Federal Credit Union President 2019-2023 Supervisory Board Committee Santee Chamber of Commerce Executive Board Member -1996-1998 Elected to handle budgetary and Administrative issues at the local Santee Chamber Relevant Skills and Strengths: Blank for Photocopying Blank for Photocopying Blank for Photocopying Blank for Photocopying EDUCATION: LICENSES: WORK EXPERIENCE: Jeff Damon Griffith Butte College, Oroville, California Associates Degree-1994 Certificate of Achievement-Paramedic Enterprise High, Redding, California State of California: Paramedic Commercial Driver License "A" 10/01/2021 -Present Palomar College Part-Time Faculty 02/29/2006 -12/21/2021 11/06/2012 -Present 10/23/1988 -09/11/2006 Emergency Medical Education 1140 W Mission Rd. San Marcos, CA 92069 (760)744-1150 Cal Fire/Riverside Unit Glen Oaks Station #96 Temecula Division/Battalion 15 (951)302-7502Fire Captain - Schedule "A" Palomar Health District 2185 Citracado Parkway Escondido, CA 92029 Phone: ( 442) 281-5000 Board of Directors, Vice Chair CDF/Ramona Fire Department Battalion 8 829 San Vicente Road Ramona, CA 92065 (760)788-2222Position: Fire Apparatus Engineer/ParamedicSchedule "A" Proctor/Field Training Officer 1 STAFF REPORT TYPE MEETING: Regular Board Meeting MEETING DATE: April 5, 2023 SUBMITTED BY: Tenille M. Otero PROJECT: Various DIV. NO. All APPROVED BY: Jose Martinez, General Manager SUBJECT: 2023 Legislative Program Policy Guidelines and Top 10 Legislative Priorities GENERAL MANAGER’S RECOMMENDATION: That the Board of Directors adopt the 2023 Otay Water District Legislative Program Policy Guidelines and the anticipated 2023 Top 10 Legislative Priorities. COMMITTEE ACTION: See Attachment A. PURPOSE: To provide direction to staff and the Otay Water District’s legislative advocates in the formulation of the District’s response to legislative initiatives on prominent issues that could impact the District and/or other local water agencies. To present to the Board of Directors with the anticipated 2023 Legislative Program Priorities, which staff and legislative advocates will proactively monitor and/or act on during the 2023 legislative session and throughout the year. ANALYSIS: The Otay Water District maintains a set of legislative policy guidelines to direct staff and its legislative advocates on issues important to the District. Staff updates the legislative guidelines annually and/or as needed with the proposed updates presented to the District’s Board of Directors for review, comment, and adoption. The 2023 Legislative Program represents policy guidelines on legislation for the Board’s consideration. Normally, representatives to the California Legislature introduce 2,000 or more bills or significant resolutions. While many bills fail to make it out of their house of origin, many others move on to be signed by the governor and become law. These new laws can AGENDA ITEM 8b 2 fundamentally affect special districts. The same is true with each session of the House of Representatives and the U.S. Senate. The 2023 Legislative Program establishes guidelines and policy direction that staff and the District’s legislative advocates can use when monitoring legislative activity to facilitate actions quickly in response to proposed bills or issues. The guidelines provide a useful framework for staff and legislative advocates when evaluating the potential impact of state or federal legislation on the District. This is particularly helpful when a timely response is necessary to address last-minute amendments to legislation, District participation in coalitions on issues, and should calls or letters of support or opposition be needed. Legislation that does not meet the guidelines as set forth or that has potentially complicated or varied implications, will not be acted upon by staff or the District’s legislative advocates, and will instead be presented to the Board directly for guidance in advance of any position being taken. The San Diego County Water Authority has its own set of legislative policy guidelines that is a comprehensive program at a wholesale and regional level. District staff has evaluated policies and issues from the Water Authority’s guidelines that may have a direct or indirect impact on the District. Staff has incorporated these policies and issues into the District’s guidelines. Although the District is a retail agency and is focused on its local service area, if there are issues or polices incorporated in the Water Authority’s legislative policy guidelines that could benefit or impact the District, the General Manager, District staff, and the District’s legislative advocates may act on those issues, respectively. The 2023 Legislative Program Policy Guidelines presents staff’s recommendations for the Board’s review and seeks the Board’s feedback for any additional modifications. Staff will then incorporate the Board’s recommendations into the final document. In general, the guidelines look to protect the District’s interest in a reliable, diverse, safe, and affordable water supply. Moreover, they seek to maintain local control over special district actions to protect the Board’s discretion and ratepayers’ interests and maintain the ability to manage District operations effectively and efficiently. In addition, they express the District’s ongoing support for financial assistance to water agencies and customers regarding nonpayment due to financial hardships related to the pandemic, water-use efficiency, recycled water, seawater desalination, capital improvement project development, organization-wide safety and security, binational cooperation, climate change, and funding. These guidelines also demonstrate the District’s strong and collaborative support and efforts to advocate against a “one-size-fits-all” approach and any unfunded mandates by legislation or regulation. 3 The proposed redlined 2023 Legislative Program Policy Guidelines are included in Attachment B. A clean copy of the proposed changes is included in Attachment C. When the Board adopts the updated guidelines, staff will incorporate recommended changes by the Board into the final document. In addition, staff is presenting the District’s anticipated Top 10 Legislative Priorities for the year (Attachment D). This list highlights, in no specific order, legislation or issues that District staff and/or the Water Authority is currently monitoring and/or may take or has already taken a position on. The deadline for bill introduction was Feb. 17, 2023. Typically, lobbyists and legislative staff wait until the last couple of days leading up to the deadline, and then hundreds of bills will be introduced. Based on the bills/issues that legislators introduced by this year’s deadline, staff worked with the District’s legislative consultant to develop a list of priority issues for 2023. The anticipated top 10 priorities, include: 1. Drought Response and Extreme Weather 2. Water Rights Modernization 3. Advanced Clean Fleets Rulemaking 4. Water Quality 5. Affordability 6. Water Use and Efficiency 7. Proposed Bonds 8. State Budget/Infrastructure Funding 9. Recycled Water 10. State Water Project/Delta Conveyance Staff and the District’s consultant will continue to monitor those bills and issues that may affect the District. Staff will update the Board as necessary throughout the year to provide updates on legislative issues impacting the District. District staff continues to proactively work with the Water Authority’s government relations staff, the District’s legislative consultant, the Association of California Water Agencies, California Special Districts Association, California Water Efficiency Partnership, California Municipality Utilities Association, and other related coalitions, associations, and organizations to monitor legislative issues that affect the District and its ratepayers. It is 4 critical that District and its staff remain engaged in these issues as they could have an impact on how the District conducts day-to-day operations and operates and maintains its facilities, thus affecting its ratepayers. FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. STRATEGIC GOAL: Execute and deliver services that meet or exceed customer expectations, and increase customer engagement in order to improve District Services. Enhance and build awareness and engagement among the District’s customers and stakeholders and within the San Diego Region about the District’s strategies, policies, projects, programs, and legislative/regulatory issues. LEGAL IMPACT: None. Attachments: A) Committee Action B) Proposed 2023 Otay Water District Legislative Program Policy Guidelines (Redlined) C) Proposed 2023 Otay Water District Legislative Program Policy Guidelines (Clean Copy) D) Presentation “Anticipated Top 10 Legislative for 2023” – Brownstein, Hyatt, Farber and Schreck E) Anticipated Top 10 Legislative Priorities for 2023 5 ATTACHMENT A SUBJECT/PROJECT: 2023 Legislative Program Policy Guidelines and Top 10 Legislative Priorities COMMITTEE ACTION: The Conservation, Public Relations, Legal and Legislative Committee reviewed these items on March 16, 2023, and the following comments were made: • Staff provided the staff report to the Committee and recommended that the Board adopt the 2023 Otay Water District Legislative Program Policy Guidelines and the anticipated 2023 Top 10 Legislative Priorities. • Policy Advisors Ruy Laredo and Baltazar Cornejo, from Brownstein, Hyatt, Farber and Schreck, provided a PowerPoint Presentation to the Committee. They highlighted that AB 1594 (E. Garcia) was recently amended on March 13, 2023. • The Committee provided comments and concerns regarding legislation and water issues. Although staff stated that the priorities were in no specific order as part of its report, the Committee directed staff to revise the Top 10 Legislative Priorities so the top three (3) priorities are listed in this order: 1) Affordability, 2) Water Quality, and 3) Water Use and Efficiency. • The Committee also asked staff to include language in the Legislative Program Policy Guidelines about educating elected officials and others regarding affordability, rates, water sales, conservation, and other programs/projects that rates pay for on a day-to-day basis. Following the discussion, the Committee supported staffs’ recommendation and presentation to the full board as an action item. Otay Water District Legislative Program 20222023 1 | P a g e Effective Date: 04/0605/20222023 Legislative Program Policy Guidelines Purpose The Otay Water District’s 2023 legislative policy guidelines reflect policy positions adopted by the Board of Directors through 2022. The guidelines provide direction to staff and the District’s legislative advocates when they evaluate proposed legislation that may affect the District, other local water agencies, or regional water management and use. Legislation that meets or fails to meet, the principles set forth in the guidelines may be supported or opposed accordingly. The guidelines permit the General Manager, District staff, and the District’s legislative advocates to act in a timely fashion between Board meetings on issues that are clearly within the guidelines. While the title of this document suggests these policy guidelines are applicable solely to state and federal legislative issues reviewed by the San Diego County Water Authority (Water Authority), the District and its wholesale supplier the San Diego County Water Authority (Water Authority), increasingly state and federal regulatory and administrative bodies are developing rules, guidelines, white papers, and regulations that can significantly affect the District, its wholesale supplier, and other local water agencies. District staff, including the District’s legislative consultant, often utilize these Legislative Policy Guidelines to provide guidance on emerging and active regulatory and administrative issues. Legislation that does not meet the principles set forth in the guidelines or that has potentially complicated or varied implications will not be acted upon by staff or the legislative advocates in between Board meetings and will instead be presented to the Board directly for guidance in advance of any position being taken. The Water Authority has its own set of legislative guidelines that is a comprehensive program at a wholesale and regional level. District staff has evaluated and selected policies and issues from the Water Authority’s guidelines that may have a direct impact on the District. These policies and issues have been incorporated into the District’s guidelines. Although the District is a retail agency and is focused on its local service area, if there are issues or polices contained in the Water Authority’s Legislative Policy Guidelines that could benefit or impact the District, the General Manager, District staff, and the District’s legislative advocates may act on those issues, respectively. Attachment B Otay Water District Legislative Program 20222023 2 | P a g e Table of Contents The Otay Water Legislative Policy Program Guidelines for 2021 2023 includes the following categories: I.Binational Issues…………………………………………....……………... Page 3 II.Biological and Habitat Preservation…………………………………….. Page 3 III.Desalination……………………………………………………………….. Page 4 IV.Drought Response………………………………………………………… Page 4 V.Energy……………………………………………………………………… Page 5 VI.Financial Issues…………………………………………………………… Page 6 A.Fees, Taxes, and Charges………………………….......................... Page 6 B.Funding…………………………………………………………….. Page 8 C.Rates………………………………………………………………... Page 10 D.Water Bonds……………………………………………………….. Page 10 E.Affordability……………………………………………………. Page 11 VII.Governance and Local Autonomy……………………………………….. Page 12 VIII.Imported Water Issues……………………………………………………. Page 13 A.Bay-Delta……………………………………………………………… Page 13 i.Co-equal Goals……………………………………………………. Page 13 ii.Bay-Delta Conveyance Project…………………………………… Page 14 B.Metropolitan Water District…………………………………………… Page 15 C.Colorado River………………………………………………………… Page 15 D.State Water Project…………………………………………………….. Page 16 IX.Optimize District Effectiveness……………………...…………....………. Page 16 X.Safety, Security, and Information Technology……………....................... Page 17 XI.Water Quality Issues………………………………………………………. Page 18 XII.Water Recycling and Potable Reuse……………………………………… Page 19 XIII.Water Service and Facilities……………………………………………… Page 20 XIV.Water-Use Efficiency……………………………………………………… Page 24 XV.Workforce Development………………………………………………….. Page 26 Otay Water District Legislative Program 20222023 3 | P a g e I. Binational Issues Support initiatives that: 1. Promote and provide funding for cross-border water supply and infrastructure development projects such as water pipelines, desalination plants or water treatment facilities to serve the San Diego/Baja California border region while protecting local interests. 2. Encourage enhanced cooperation between entities in San Diego and Baja California in development of supply and infrastructure projects that will benefit the entire border region. 3. Encourage state and federal funding to support collaborative binational projects to improve water quality and protect human health and the environment within the broader San Diego region. 4. Develop and enhance communications and understanding of the interdependence of communities on both sides of the border with the goal of improved cross-border cooperation. Oppose initiatives that: 1. Would usurp local control over the financing and construction of water supply and infrastructure projects in the San Diego/Baja California region. II. Biological and Habitat Preservation Support initiatives that: 1. Support development of comprehensive multispecies habitat conservation plants that anticipate and mitigate project development impacts while preserving representative ecosystems, rather than individual species. 2. Exempt operation, maintenance, and repair of water system facilities from endangered species and other habitat conservation regulations because they provide beneficial cyclical habitat values to declining species and foster biological diversity in California. 3. Provide environmental regulatory certainty for implementation of existing and proposed long- term water supply programs. 4. Streamline filing of CEQA notices of determination for multicounty water projects by making those notices available on the CEQAnet website through the Governor’s office of Planning and Research. 5. Incorporate an emergency exemption for “take” of a listed species listed under the state or federal Endangered Species Acts when necessary to mitigate or prevent loss of or damage to life, health, property, or essential public services. 6. Encourage species listings, critical habitat designation, and recovery plans developed pursuant to the state or federal Endangered Species Acts to be consistent with existing interstate compacts, tribal treaties, and other state and federal agreements. Oppose initiatives that: 1. Reduce or limit the use of existing water rights or supplies, 2. Restrict the development of future water supplies. Otay Water District Legislative Program 20222023 4 | P a g e 3. Impose endangered species or habitat conservation requirements that restrict the operation, maintenance, or repair of public water supply, conveyance, treatment, or storage facilities. III. Desalination Support initiatives that: 1. Provide funding for seawater desalination studies and facilities. 2. Recognize and support the development of seawater desalination as critical new water supply for the state, including San Diego County. 3. Streamline permitting of desalination facilities. 4. Preserve and protects potential seawater desalination sites and existing coastal facilities including intake and discharge infrastructure that could be used or reused by a seawater desalination facility. 5. Ensure that desalination intake and discharge regulations are science-based, considering site- specific conditions, and recognizing that not all technologies or mitigation strategies are feasible or cost-effective at every site. IV. Drought Response Support initiatives that: 1. Ensure the District and other local agencies including the Water Authority and San Diego County water agencies receive the water supply benefits of investments in local water supply sources. 2. Allow local agencies to achieve compliance with emergency or non-emergency drought regulations or objectives through a combination of water conservation measures and development and implementation of local water supply sources that are not derived from the Delta. 3. Allow for local agencies to account for all water supplies available during droughts and other events when calculating the water supply shortage level. 4. Create a process for development and implementation of emergency drought declarations and regulations that recognizes variations among communities, regions, and counties with respect to their abilities to withstand the impacts and effects of drought. 5. Recognize variations among communities, regions, and counties with respect to their abilities to withstand the impacts and effects of droughts and ensure that any temporary or permanent statutory or regulatory direction for improving water-use efficiency to meet statutory or regulatory goals or standards is focused on regional achievement of objectives rather than a one-size-fits-all approach. Oppose initiatives that: Otay Water District Legislative Program 20222023 5 | P a g e 1. Disincentivize or impede water agencies from making investments to maximize the potential for recycled water, potable reuse, desalination, and other drought-resilient local water supplies. 2. Create a “one-size-fits-all” approach to emergency drought declarations and regulations that ignores variations among communities, regions, and counties with respect to their ability to withstand the impacts and effects of drought. V. Energy Support initiatives that: 1. Provide opportunities for reduced energy rates under tariff schedules for the District and other local water agencies. 2. Provide protection to the District and other local water agencies from energy rate increases and provides rate relief for the District and water agencies. 3. Provide funding, including state and federal grants, for in-line hydro-electric, solar, wind, battery storage, biogas, cogeneration, nanogrids, microgrids, closed-loop pumped storage facilities, and other renewable energy generation or storage technology as means of reducing greenhouse gas emissions and energy cost. 4. Promote funding for use of renewable energy in the operation of District facilities. 5. Prohibit investor-owned utilities from implementing rate changes that undercut the financial viability of renewable energy facilities obligated under long-term Power Purchase Agreements. 6. Provide greater flexibility in the utilization of the District’s facilities for generation and acquisition of electrical and natural gas power. 7. Provide the District with greater flexibility in the licensing, permitting, interconnection, construction, and the operation of its existing and potential in-line hydroelectric, solar, wind, battery, nanogrid, microgrid, closed-loop pumped-energy storage projects, and other renewable generation or storage technology. 8. Make SWP power available for all water projects. 9. Promote the classification of electricity generated by in-line hydroelectric and closed-loop pumped-energy storage facilities as environmentally sound. 10. Promote the expansion of closed-loop pumped-energy storage facilities to provide clean and environmentally sound energy resource that provides electric and reliability and resiliency, especially during times of potential blackouts. 11. Promote the expansion of in-line hydroelectric energy recovery systems at treatment facility discharge systems. 12. Promote the production, purchase, delivery, and use of alternative sources of energy on a wholesale basis. Otay Water District Legislative Program 20222023 6 | P a g e 13.Provide clear statutory, regulatory, or administrative authority for the Water Authority to wheel acquired or produced power to itself, the District, or entities with which the Water Authority is under contract for the purchase, treatment, transport, or production of water. 14.Recognize and monetize all grid ancillary services that pumped hydro-energy storage provides and supports fair compensation in the wholesale energy market for such services. 15.Provides timely, efficient, and cost-effective interconnection of new energy resources such as solar, inline hydroelectric, pumped-energy storage, and other renewable energy generation or storage technologies to the electric distribution and transmission grid. 16.Recognize the value of large-scale hydropower and pumped-energy storage facilities in assisting the state to meet its renewable and zero-carbon emission goals of 100 percent by 2045. Oppose initiatives that: 1.Adversely affect the cost of energy needed to operate MWD’s facilities, SWP facilities, or the facilities of the Water Authority and the District. 2.Impose greenhouse gas reduction obligations on a public water agency for electricity purchased or produced for the sole purpose of operating its system. 3.Adversely affect the ability of the District or other water agencies in the county to own, operate, and/or construct work for supplying its own facilities with natural gas and electricity. 4.Impede the District or other water agencies in the county, the ability to contract for, deliver, and use the purchase of natural gas and or electricity purchased from the United States, the State of California, and any other public agency or private entity and provide, sell, exchange, or deliver the gas and or electricity to itself, any public agency or private entity engaged in retail sales of electricity and gas. 5.Reduce the District’s ability to always maintain high operational efficiency. 6.Restrict the District’s ability to expand or improve infrastructure or facilities. 7.Restrict or caps future energy demands needed for possible expansion of recycled water, potable reuse, and/or desalination projects. 8.Adversely affect the District’s ability to expand cogeneration or polygeneration at planned or existing facilities. 9.Inhibit the scientific advancement of energy and water efficient/conserving technologies that may be implemented at the District or other agency facilities. 10.Prevent the District from enhancing energy reliability and independence for its facilities. 11.Do not count or credit qualified renewable energy projects toward accomplishment and satisfaction of the California Renewables Portfolio Standard objectives. 12.Prohibit the Water Authority from wheeling - or securing statutory, regulatory, or administrative authority necessary to wheel - acquired or produced power to itself, the District, or other entities with which the Water Authority is under contract of the purchase, treatment, transport, or production of water. Otay Water District Legislative Program 20222023 7 | P a g e 13.Result in a lengthy, more complicated, or more costly interconnection of new energy resources, such as solar, inline-hydroelectric, pumped-energy storage, and other renewable energy generation or storage technologies to the electric distribution and transmission grid. VI.Financial Issues A.Fees, Taxes, and Charges Support initiatives that: 1.Require the federal government and State of California to reimburse special districts for all mandated costs or regulatory actions. 2.Give special districts the discretion to cease performance of unfunded mandates. 3.Provide for fiscal reform to enhance the equity, reliability, and certainty of special district funding. 4.Provide incentives for local agencies to work cooperatively, share costs or resources. 5.Provide for the stable, equitable and reliable allocation of property taxes. 6.Continue to reform workers compensation. 7.Promote competition in insurance underwriting for public agencies. 8.Produce tangible results, such as water supply reliability or water quality improvement. 9.Require the Metropolitan Water District of Southern California (MWD) to refund or credit to its member agencies revenues collected from them that result in reserve balances greater than the maximum reserve levels established pursuant to state legislation. Oppose initiatives that: 1.Impose mandated costs or regulatory constraints on local agencies and their customers without providing subventions to reimburse local agencies for such costs. 2.Pre-empt the Water Authority’sDistrict or its memberlocal water agencies’ ability to impose or change rates, charges, fees, or assessments. 3.Weaken the protections afforded the District, the Water Authority or its other local water member agencies under California’s Proposition 1A (November 2, 2004). 4.Reallocate special districts reserves in an effort toto balance the state budget. 5.Reallocate special district revenues or reserves to fund infrastructure improvements or other activities in cities or counties. 6.Establish funding mechanisms that put undue burdens on local agencies or make local agencies de facto tax collectors for the state. 7.Adversely affect the cost of gas and electricity or reduce an organization’s flexibility to take advantage of low peak cost periods. 8.Add new reporting criteria, burdensome, unnecessary, or costly reporting mandates to Urban Water Management Plans. 9.Add new mandates to the Department of Water Resources (DWR) to review and approve Urban Water Management Plans beyond those already addressed in DWR guidelines. 10.Mandate that water agencies include an embedded energy calculation for their water supply sources in Urban Water Management Plans or any other water resources planning or master-planning document. 11.Weaken existing project retention and withholding provisions that limit the ability of public agencies to drive contractor performance. Otay Water District Legislative Program 20222023 8 | P a g e 12.Establish change order requirements that place an unreasonable burden on local agencies, or raise financial risk associated with public works contracts. 13.Impair the Water Authority or its member agencies’ ability to provide reasonable service at reasonable costs to member agencies or to charge all member agencies the same rate for each class of service consistent with cost-of-service requirements of the law. 14.Impair the local water agencies’ ability to maintain reasonable reserve funds and obtain and retain reasonable rates of return on its reserve accounts. 15.Mandate a specific rate structure for retail water agencies. 16.Impose a water user fee on water agencies or water users that does not provide a commensurate and directly linked benefit in the local area or region from which the water user fee is collected. 17.Impose a water user fee for statewide projects or programs, for which the projects or programs are not clearly defined, the beneficiaries identified, and reasonable costs identified. 18.Impose a water user fee to create a state fund that can be used to finance undefined future projects and programs. 19.Allow the state to retain more than five percent of water user fees for administrative costs. 20.Do not restrict the use of water user fees to only the specific purposes for which they are imposed, without any possibility of diversion to meet other fiscal needs of the state. 21.Impose a “public goods charge” or “water tax” on public water agencies or their ratepayers. 22.Impose a fee on water users to repay the principal and interest on a statewide general obligation bond. 23.Establish regulatory or permit fees that lack a nexus to the costs of oversight. 24.Establish a broad-based user fee that does not support a specific program activity; any fee must provide a clear nexus to the benefit the fee would provide. B.Funding Support initiatives that: 1.Require the federal and state governments to provide subvention to reimburse local governments for all mandated costs or regulatory actions. 2.Provide the District, the Water Authority, and its other local watermember agencies with additional forms of cost- effective financing for public facilities. 3.Revitalize the Title XVI federal funding program by converting new authorizations to a competitive grant program with congressional oversight while protecting existing Title XVI authorizations for the San Diego region. 4.Provide the District, Water Authority, and its member local water agencies with grant funding for public facilities, including developing local water resources and rehabilitation and repair of aging infrastructure, such as pipelines. 5.Provide the District, other local water agencies, and water ratepayers with post-COVID-19 financial relief through a variety of means, including but not limited to, direct financial assistance and flexibility in debt management to assist water ratepayers and water suppliers. Otay Water District Legislative Program 20222023 9 | P a g e 6.Authorize financing of water quality, water security, and water supply infrastructure improvement programs. 7.Establish spending caps on State of California overhead when administering voter approved grant and disbursement programs. 8.Require disbursement decisions in a manner appropriate to the service in question. 9.Encourage funding infrastructure programs that are currently in place and that have been proven effective. 10.Provide financial incentives for energy projects that increase reliability, diversity, and reduce greenhouse gasses. 11.Continue energy rate incentives for the utilization of electricity during low-peak periods. 12.Provide loan or grant programs that encourage water conservation for water users who are least able to pay for capital projects. 13.Provide for population-based distribution of IRWM funds to ensure adequate distribution of grant funding throughout the state. 14.Provide for the use of state grant funds for binational projects where the projects benefit water supply or water quality in the San Diego region. 15.Improve and streamline the state’s reimbursement process to ensure timely remittance of IRWM funds. 16.Promote the ability of the Regional Water Management Group to administer state grant funds specifically identified more directly for IRWM Programs. 17.Require the state to rely on the local process for selection and ranking of projects included in an approved IRWM plan. 18.Provide funding or other incentives for conservation, peak management programs, water recycling, potable reuse, groundwater recovery and recharge, surface water development and management projects, including reservoir management, source water protection and watershed planning studies and facilities that sustain long-term reliable water resources. 19.Provide financial incentives to assist in the disposal of concentrate, sludge, and other byproducts created in the water treatment process. 20.Authorize, promote, and provide incentives or credits for development of local drought- resilient water supply projects such as desalination, non-potable recycling, and potable reuse projects. 21.Provide funding for potable reuse demonstration projects and studies. 21.22. Provide funding for infrastructure improvements at desalination facilities with eligibility for public and private partnerships. 22.23. Authorize federal and state funding to develop and implement regional or subregional conservation programs, including but not limited to property acquisition, revegetation programs, and watershed plans. 23.24. Provide state and/or federal funding for the restoration of the Salton Sea. 24.25. Provide federal and/or state funding to implement actions that address the ecological and water supply management issues of the Lower Colorado River from Lee's Ferry to the southerly international border with Mexico. 25.26. Provide federal and/or state funding to implement actions that address the ecological and water supply management issues of the Sacramento-San Joaquin River Delta. 26.27. Permit the use of grant funding for projects implemented under public-private partnerships where the grant provides funding for a public benefit. Otay Water District Legislative Program 20222023 10 | P a g e 28.Require the state agencies responsible for preparing the IRWM grant program guidelines to conduct a comprehensive public outreach process that ensures stakeholders have an opportunity to provide adequate input on preparation of the guidelines and that the state agencies consider and respond to comments received through the outreach process. 27.29. Provide incentive, funding, and assistance to water agencies so that they can comply with AB 32 (2006) requirements, and updated statutory requirements imposed pursuant to SB 32 (2016), SB 100 (2018), and SB 1020 (2022). Oppose initiatives that: 1.Impose additional administrative requirements and/or restrict the District’s, Water Authority’s, or its memberother local water agencies’ ability to finance public facilities through the issuance of long-term debt. 2.Interfere with the responsibility of a region, operating under an Integrated Regional Water Management Plan, for setting priorities and generating projects to be paid from any IRWM accounts and grants. 3.Interfere with the control exercised by the San Diego funding subregion over the use and expenditure of any water-user fee revenues that may be dedicated to the region. 4.Establish IRWM funding criteria that limits local discretion in project selection. 5.Provide for after-the-fact reduction in quantity or quality of a public water supply due to new restrictions on the operation or use of water supply facilities unless funding for alternate sources of water is provided. 6.Impose a "utility user fee" or "surcharge" on water for the purposes of financing open space/habitat preservation, restoration, or creation. C.Rates Support initiatives that: 1.Maintain the authority of water agencies to establish water rates locally, consistent with cost-of-service requirements of the law. 2.Maximize the ability of water agencies to design rate structures to meet local water supply goals and that conform to cost-of-service requirements of the law. Oppose initiatives that: 1.Impair the District’s, the Water Authority’s, or its member local water agencies’ ability to provide reliable service at reasonable costs to member agencies or to charge all member agencies the same or similar rate for each class of service consistent with cost-of-service requirements of the law. 2.Undermine or weaken cost-of-service rate-making requirements in existing law. 3.Impair the District’s ability to maintain reasonable reserve funds and obtain and retain reasonable rates of return on its reserve accounts. 4.Mandate a specific rate structure for retail water agencies. 5.Prescribe mandatory conservation-based rate structures that override the authority of the boards of directors of local water agencies to set rate structures according to the specific needs of the water agencies. 6.Usurp special district funds, reserves, or other state actions that force special districts to raise rates, fees, or charges. Otay Water District Legislative Program 20222023 11 | P a g e D.Water Bonds Support initiatives that: 1.Provide an equitable share of funding to San Diego County, with major funding categories being divided by county and funded on a per-capita basis to ensure bond proceeds are distributed throughout the state in proportion to taxpayers’ payments on the bonds. 2.Focus on statewide priorities, including restoration of fish and wildlife habitat, construction of an improved method of conveyance of water through or around the Delta that provides water supply reliability to Delta water users, promotion of greater regional and local self-sufficiency, surface storage, and promotion of water-use efficiency. 3.Ensures funding from various propositions for local and regional water-related projects. 4.Include within IRWM funding money that a region may use over time to develop and refine its plan and to develop institutional structures necessary to establish and implement the plan. 5.Give primary consideration to funding priorities established by local and regional entities through their IRWM planning process. 6.Ensure the application process for funding is not unnecessarily burdensome and costly, with an emphasis on streamlining the process. 7.Limit state overhead to no more than five percent of bond funding amounts. 8.Place as much emphasis and provides at least as much funding for surface storage as for groundwater storage. 9.Define the “San Diego sub-region” and “San Diego county watersheds” as “those portions of the westward-flowing watershed of the South Coast hydrologic region situated within the boundaries of San Diego County.” 10.Fund emergency and carryover storage projects including those in San Diego County. 11.Consolidate administration of all voter-approved water-related bond funding in one place, preserves existing expertise within the state bureaucracy to manage bond-funding processes, and provide consistent application and evaluation of bond funding applications. 12.Provide the state’s share of funding for projects that advance the achievement of the co- equal goals of water supply reliability and Delta ecosystem restoration. 13.Provide funding for water infrastructure that resolve conflicts in the state’s water system and provide long-term benefits to statewide issues including water supply, reliability, water quality, and ecosystem restoration. Oppose initiatives that: 1.Do not provide an equitable share of funding to San Diego County based on the San Diego County taxpayers’ proportional contribution to repayment of the bonds. 2.Do not provide funding for infrastructure that resolves statewide or regional conflicts of water supplies. 3.Do not provide funding that result in net increases in real water supply and water supply reliability. 4.Commit a significant portion of bond funding to projects that do not result in net increases in real water supply or water supply reliability. E.Affordability Otay Water District Legislative Program 20222023 12 | P a g e Support initiatives that: 1.Abides by the Human Right to Water (AB 685, 2012) as set forth in Section 106.3 of the California Water Code which reads that, “every human being has the right to safe, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes.” The State Water Resources Control Board also has a resolution supporting this program. 2.Meets the required standards under Proposition 218 in the California Constitution regarding proportionality of water rates and the cost-of-service provisions. 3.Relies on data-driven analysis of water affordability, including considerations such as census data and economically- disadvantaged communities. As such, the District supports the continued implementation of AB 2334 (2012) that requires the Department of Water Resources to provide this analysis and place it in California’s Water Plan. 4.Supports the creation of a low-income water rate assistance program that targets providing financial assistance to low-income ratepayers using existing resources within either the state General Fund or cap-and-trade dollars. 5.Does not burden water districts with excessive or overly prescriptive state mandates including the collection of water taxes or water rate and boundary data, and qualification of customers for low-income assistance .programs. 5.6.Supports the expansion of the low-income assistance programs (LIHWAP) or other programs, using existing resources from the federal government, with the state General Fund or cap-and-trade dollars or other state financial resources. Oppose initiatives that: 1.Is not targeted appropriately: Any low-income water rate assistance program must be limited in scope to those individuals. By seeking to do too much, effectiveness could be limited. Examples of this could include extending program resources to domestic wells or water-use efficiency programs. 2.Does not have a funding source: Any low-income water rate assistance program needs to identify specific sources of sustainable funding and does not include a water tax or water surcharge. 3.Does not reinvent the wheel: Any low-income water rate assistance program should be built upon and use the resources of an existing benefit distribution organization or system, such as CalFresh, rather than requiring water agencies to add the operating expense of creating and administering a new method. VII.Governance and Local Autonomy Support initiatives that: 1.Expand local autonomy in governing special district affairs. 2.Promote comprehensive long-range planning. 3.Assist local agencies in the logical and efficient extension of services and facilities to promote efficiency and avoid duplication of services. 4.Streamline the Municipal Service Review Process or set limits on how long services reviews can take or cost. 5.Reaffirm the existing “all-in” financial structure or protect the Water Authority voting structure based on population. Otay Water District Legislative Program 20222023 13 | P a g e 6.Promote measures that increase broader community and water industry representation/appointments on State decision making bodies. 7.Ensure an open and transparent process for adoption of regulations, policies, and guidelines. 8.Preserve the District and other local water agencies’ ability to establish local priorities for water resources planning decisions. Oppose initiatives that: 1.Assume the state legislature is better able to make local decisions that affect special district governance. 2.Create one-size-fits-all approaches to special district reform. 3.Unfairly target one group of local elected officials. 4.Usurp local control from special districts regarding decisions involving local special district finance, operations, or governance. 5.Diminish the power or rights of the District’s governing body to govern the District’s affairs. 6.Diminish the power or rights of the District to govern relations with its employees. 7.Modify the committee or board voting structure or District and member agency board representation on the Water Authority Board of Directors unless such changes have been expressly authorized by the District’s Board. 8.Create unfunded local government mandates. 9.Create costly, unnecessary, or duplicative oversight roles for the state government of special district affairs. 10.Create new oversight roles or responsibility for monitoring special district affairs. 11.Change the San Diego County Water Authority Act regarding voting structure unless it is based on population. 12.Shift the liability to the public entity and relieve private entities of reasonable due diligence in their review of plans and specifications for errors, omissions, and other issues. 13.Place a significant and unreasonable burden on public agencies, resulting in increased cost for public works construction or their operation. 14.Impair the ability of water districts to acquire property or property interests required for essential capital improvement projects. 15.Increase the cost of property and right-of-way acquisition or restricts the use of right-of- ways. 16.Work to silence the voices of special districts and other local government associations on statewide ballot measures impacting local government policies and practices, including actions that could prohibit special districts and associations from advocating for positions on ballot measures by severely restricting the private resources used to fund those activities. 17.Prescribe mandatory conservation-based or other rate structures that override the authority of the board of directors to set its rate structure. 18.Circumvent the legislative committee process, such as the use of budget trailer bills, to advance policy issues including impacting special districts without full disclosure, transparency, or public involvement. 19.Restrict the District’s ability to utilize a demand forecasting methodology that is best suited locally and for the region. Otay Water District Legislative Program 20222023 14 | P a g e 20.Impose mandates requiring specific water resources be developed by water agencies that fail to consider local factors such as water reliability, hydrologic and geographic characteristics, and the economic, political, public acceptance, social environment, which can influence selection of resources and/or fails to consider or conflicts with existing local and regional planning policies and implementation priorities. 21.Limit the District’s ability to establish local priorities for water resources planning decisions. VIII.Imported Water Issues A.Bay-Delta i.Co-Equal Goals Support initiatives that: 1.Require the Delta Stewardship Council or DWR to provide periodic analyses of the cost of the proposed Delta improvements to the Legislature and the public. 2.Provides conveyance and storage facilities that are cost-effective for the San Diego region’s ratepayers, improve the reliability and quality of the San Diego region’s water supplies, and protect the Bay-Delta’s ecosystem. 3.Continue to support the co-equal goals of water supply reliability and environmental restoration embodied in the 2009 Delta bill package. 4.Improve the ability of water-users to divert water from the Delta during wet periods, when impacts on fish and the ecosystem are lower and water quality is higher. 5.Encourage the development of a statewide water transfer market that will improve water management and allow more efficient use of available resources. 6.Support improved coordination of Central Valley Project and State Water Project (SWP) operations and implementation of voluntary agreement that are fair to the users of both projects and do not unfairly shift costs to SWP contractors. 7.Support continued state ownership and operation of the SWP, including project facilities, as a public resource. 8.Ensure that any reorganization of the State Water Project, including operations and management, preserves the ability for non-State Water Project contractors to access the facility for transportation of water to a non-State Water Project contractor. 9.Authorize and appropriate the federal share of funding for the long-term Bay-Delta solution, including for the EcoRestore Program. 10.Provide the ongoing state share of funding for the EcoRestore Program. 11.Provide state funding for aquatic toxicity monitoring in the Bay-Delta. Such legislation should not place a surcharge on water supply exports, nor should it substantively reduce funding for other measures that protect the environment and public health. Oppose efforts that: 1.Impose water user fees to fund ecosystem restoration and other public purpose, nonwater- supply improvements in the Delta that benefit the public at large. 2.Transfer operational control of the State Water Project or any of its facilities to the Metropolitan Water District of Southern California (MWD), the State Water Contractors, the Central Valley Project Contractors, the State and Federal Contractors Water Agency, or any Otay Water District Legislative Program 20222023 15 | P a g e entity comprised of MWD or other water project contractors, or any other special interest group. ii.Bay-Delta Conveyance Project Support initiatives that: 1.Are consistent with the Water Authority’s Board of Directors’ July 25, 2019 adopted Bay- Delta project policy principles, including the following: a.On April 29, 2019, Governor Newsom signed Executive Order N-10-19, directing the preparation of a water resilience portfolio approach that meets the needs of California’s communities, economy, and environment through the 21st century, including consideration of multi-benefit approaches that meet multiple needs at once, and a single-user tunnel Bay-Delta project. b.The Water Authority’s Board supports Governor Newsome’s Executive Order N-10- 19 and directs staff to inform the Newsome Administration that its support for a single-tunnel Bay-Delta project is expressly conditioned upon the project costs being characterized by the Department of Water Resources (DWR) as conservation, or supply charges, as similar facilities historically have been defined in the Metropolitan Water District’s (MWD) SWP contract with DWR. c.As reflected in Table 2 of DWR’s Appendix B to Bulletin 132-17, Data and Computation Used to Determine Water Charges, and for which costs are recovered in Article 22(a) of Delta Water Charge of MWD’s SWP Contract; allow for the exemption of north-of-Delta SWP contractors. 2.Support the establishment of an independent and transparent oversight function to monitor and provide regular updates on project implementation progress, including expenditure tracking, construction progress, project participants’ contributions, and all other relevant activities and developments. 3.Allow access to all SWP facilities, including project facilities, to facilitate water transfers. B.Metropolitan Water District Support initiatives that: 1.Provide an appropriate level of accountability and cost control over MWD spending. 2.Protect and safeguard the Water Authority’s Preferential Rights in the Metropolitan Water District Act. 3.Require MWD to refund or credit to its member agencies revenues collected from them that result in reserve balances greater than the maximum reserve levels established pursuant to state legislation. 4.Require MWD to implement actions that advance and support its long-term financial stability, fiscal sustainability, and that moderate fluctuations in rates and charges for its member agencies from year to year, in a publicly transparent manner. 5.Amend the Metropolitan Water District Act to change voting allocation on its Board of Directors based on a member agency’s total financial contribution to MWD, and in a manner similar to the voting allocation method of the County Water Authority Act. C.Colorado River Otay Water District Legislative Program 20222023 16 | P a g e Support initiatives that: 1.Supports implementation and funding of the California Colorado River Water Use Plan, including the Lower Colorado River Multi-Species Conservation Program 2.Provide funding for Colorado River salinity control projects and other water quality management efforts. 3.Provide for state and federal authorizations and appropriations of non-fee-based funds to implement Salton Sea mitigation and the State’s phased approach to restoration in the form of the Salton Sea Management Program consistent with its obligations under Chapters 611, 612, and 613 of the Statutes of 2003. 4.Limit the Quantification Settlement Agreement mitigation costs imposed on funding parties to the amount committed in accordance with the original QSA legislation. 5.Provide a governing structure and/or specified managing office over the state's Salton Sea Management Program to provide guidance and oversight of restoration activities. 6.Support the sustainability of the Colorado River and provide operational flexibility through the development of storage, including Lake Mead and additional storage opportunities regionally, and through the renegotiation of the new interim shortage guidelines for continued operation of the River. 7.Allow for the option to create an alternate conveyance route, when technically and financially feasible, for reliable delivery of the Water Authority’s Independent Colorado River water supplies and integration of compatible partnership projects along the proposed conveyance routes as a model of the Governor’s Water Resilience Portfolio approach to water management. 8.Support the State’s Salton Sea Management Program under the guidelines of the revised Water Order (Stipulated Order) adopted by the State Water Resources Control Board in November 2017. 9.Preserve the California Colorado River Board 10.Ensure the interests of the members of the California Colorado River Board continue to be addressed in any state government reorganization. 11.Allow for storage of the Water Authority’s Colorado River water supplies to provide enhanced flexibility with annual transfer volumes, support drought contingency planning, and align with the Governor’s Water Resilience Portfolio approach to water management. Oppose initiatives that: 1.Impose additional mitigation costs or obligations for the Salton Sea on the non-state parties to the Quantification Settlement Agreement. 2.Eliminate the California Colorado River Board without providing a comparable structure or forum that ensures the Water Authority's interests in the Colorado River are preserved. D.State Water Project Support initiatives that: 1.Provide for development of a comprehensive state water plan that balances California's competing water needs, incorporates the water resources and infrastructure concepts included in the Governor’s “Water Resilience Portfolio” and “California’s Water Supply Strategy Otay Water District Legislative Program 20222023 17 | P a g e Adapting to a Hotter, Drier, Future,” and results in a reliable and affordable supply of high- quality water for the State of California and the San Diego region. Oppose initiatives that: 1.Make urban water supplies less reliable or substantially increases the cost of imported water without also improving the reliability and/or quality of the water. 2.Revise the Central Valley Project Improvement Act to Jeopardize the Act's environmental integrity, compromise State Water Project supply reliability a n d/or limit the ability of urban agencies to transfer and/or bank CVP water for use both within and outside the CVP service area. 3.Transfer operational control of the State Water Project or any of its facilities to MWD, the State Water Project contractors, Central Valley Project contractors, the State and Federal Contractors Water Agency, any entity comprised of MWD or other water project contractors, or any other special interest group. IX.Optimize District Effectiveness Support initiatives that: 1.Manage District resources in a transparent and fiscally responsible manner. 2.Give utilities the ability to avoid critical peak energy pricing or negotiate energy contracts that save ratepayers money. 3.Develop reasonable Air Pollution Control District engine permitting requirements. 4.Reimburse or reduce local government mandates. 5.Allow public agencies to continue offering defined benefit plans. 6.Result in predictable costs and benefits for employees and taxpayers. 7.Eliminate abuses. 8.Retain local control of pension systems. 9.Are constitutional, federally legal, and technically possible. Oppose initiatives that: 1.Restrict the use of, or reallocate, district property tax revenues to the detriment of special districts. 2.Create unrealistic ergonomic protocol. 3.Micromanage special district operations. 4.Balance the state budget by allowing regulatory agencies to increase permitting fees. 5.Tax dependent benefits. 6.Require new reporting criteria on energy intensity involved in water supply. X.Safety, Security, and Information Technology Support initiatives that: 1.Provide funding for information security upgrades to include integrated alarms, access/egress, and surveillance technology. 2.Provide incentives for utilities and other local agencies to work cooperatively, share costs or resources. Otay Water District Legislative Program 20222023 18 | P a g e 3.Provide funding for communication enhancements, wireless communications, GIS, or other technological enhancements. 4.Encourage or promote compatible software systems. 5.Fund infrastructure and facility security improvements that include facility roadway access, remote gate access, and physical security upgrades. 6.Protect state, local, and regional drinking water systems from terrorist attack or deliberate acts of destruction, contamination, or degradation. 7.Provide funds to support training or joint training exercises to include contingency funding for emergencies and emergency preparedness. 8.Equitably allocate security funding based on need, threats, and/or population. 9.Encourage or promote compatible communication systems. 10.Encourage and promote funding of Department of Homeland Security Risk Mitigation programs. 11.Recognizes water agencies as emergency responders in the event of a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent and mitigate loss or impairment of life, health, property, or essential public services due to natural disasters (e.g., wildfires, earthquakes), power outages as well as terrorist and other criminal activities. 12.Provide state grant or other funding opportunities to support seismic risk assessment and mitigation plans, or to mitigate vulnerabilities. 13.Provide funding for projects that enhance security against terrorist acts or other criminal threats to water operation, services, facilities, or supplies. 14.Provide funding for projects that improve the security of the District facilities and operations. 15.Provide funding to support technologies that support remote working, when necessary to prevent loss of or damage to life, health, property, or essential public services. Oppose initiatives that: 1.Create unnecessary, costly, or duplicative security or safety mandates. 2.Require expanded water system descriptions or additional public disclosure of public water systems details for large water suppliers in Urban Water Management Planning documents, potentially compromising public water systems, and creating a conflict with the Department of Homeland Security’s recommendation to avoid reference to water system details in plans available to the public. XI.Water Quality Issues Support initiatives that: 1.Assure cost-effective remediation and cleanup of contaminates of concern that have impacted groundwater and surface water. 2.Incorporate sound scientific principals in adopting drinking water standards for drinking water concerns. 3.Revise NPDES standards and procedures to facilitate inland discharge and use of recycled water. 4.Establish appropriate quality standards, testing procedures, and treatment processes for emerging contaminants. Otay Water District Legislative Program 20222023 19 | P a g e 5. Alter the definition of “lead free” to reduce the permissible amount of lead in fixtures, plumbing, and pipe fittings to be installed for the delivery of drinking water. 6. Exempt purified wastewater from regulation as a discharge under the Clean Water Act. 7. Protect child public health by requiring schools to undertake lead testing in school drinking water systems. 8. Implement source control for management prevention of contamination by constituents of emerging concern. 9. Provide the necessary funding for research on the occurrence, treatment, health effects, and environmental cleanup related to contamination drinking water sources. 10. Implement and fund the San Diego Regional Water Quality Control Board’s triennial review of water quality standards. 11. Provide funding and support for Colorado River salinity control projects and other water quality management efforts. 12. Direct the state’s participation or assistance in water quality issues related to or threatening the Colorado River water source. 13. Streamline permitting of facilities constructed for the purpose of improving water quality. 14. Ensure consistent application of the law by the State Water Resources Control Board and the nine regional water quality control boards. Oppose initiatives that: 1. Eliminate the State Water Resources Control Board and/or the nine regional water quality control boards without ensuring the functions and expertise of the boards is maintained in any reorganized entity. 2. Regulate the conveyance, storage, or release of water supplies as discharge under the Clean Water Act and other water quality control laws. 3. Make water suppliers financially and legally responsible for mitigation of pollution contamination by third parties. 1.4.Make water suppliers financially and legally responsible for testing or correction of any water quality-related issues associated with private property or on-site plumbing systems. XII. Water Recycling and Potable Reuse Support initiatives that: 1. Reduce restrictions on recycled water usage or promote consistent regulation of recycled water projects to reduce impediments to the increased use of recycled water. 2. Reduce restrictions on injecting recycled water into basins where there is no direct potable use. 3. Advocate for direct potable reuse. 4. Advocate for recycled water use upstream of lakes and reservoirs if protected by urban water runoff protection systems. 5. Provide financial incentives for recharge of groundwater aquifers using recycled water. 6. Make recycled water regulations clear, consolidated, and understandable to expedite related project permitting. 7. Promote recycled water as a sustainable supplemental source of water. Otay Water District Legislative Program 20222023 20 | P a g e 8. Allow the safe use of recycled water. 9. Facilitate development of technology aimed at improving water recycling. 10. Increasing funding for water recycling projects. 11. Support continued funding of the Title XVI Water Reclamation and Reuse Program including Water Reclamation and Reuse Projects, the WaterSMART Program, and the Desalination and Water Purification Research Program. 12. Increase awareness of the ways recycled water can help address the region’s water supply challenges. 13. Create federal and state incentives to promote recycled water use and production. 14. Establish federal tax incentives to support U.S. companies in the development of new water technologies that can lower productions costs, address by products such as concentrates, and enhance public acceptance of recycled water. 15. Establish a comprehensive national research and development, and technology demonstration, program to advance the public and scientific understanding of water recycling technologies to encourage reuse as an alternative source of water supply. 16. Provide incentives for local agencies to work cooperatively, share costs or resources to promote or expand the use of recycled water. 17. Further refine emergency regulations to reward local suppliers that have invested in using recycled water for landscape irrigation to maintain an incentive to continue expanding areas served by recycled water. 18. Encourage the use of recycled water in commercial, industrial, institutional, and residential settings. 19. Recognize and support the development of potable reuse as a critical new water supply. 20. Define purified recycled water as a source of water supply and not as waste. 21. Mandate the reduction of wastewater discharges to the ocean absent inclusion of funding to offset the significant costs of implementation. 22. Authorize local governmental agencies to regulate the discharge of contaminants to the sewer collection system that may adversely affect water recycling and reuse. 23. Authorize and facilitate expanded use of local water resources including water recycling, potable reuse, graywater, and rainwater harvesting (e.g., cisterns and rain barrels), and brackish groundwater. 24. Streamline regulatory processes and requirements to encourage and support the development of potable reuse and non-potable reuse as a municipal water supply. 25. Recognize the entire interconnected urban water cycle, as well as public health and safety, must be taken into consideration in long-term water use efficiency policies, particularly including the unintended consequences of declining flows on water, wastewater, potable reuse, and recycled water systems. 26. Encourage dual plumbing in new development where non-potable recycled water is likely to available to enable utilization of recycled water. 27. Promote uniform regulatory interpretation of state recycled water system standards. 28. Support beneficial revisions to the California Plumbing Code that facilitate recycled water systems. Oppose initiatives that: 1. Restrict use of recycled water for groundwater recharge. Otay Water District Legislative Program 20222023 21 | P a g e 2.Establish new water or recycled water fees solely to recover State costs without also providing some benefit. 3.Limit the ability of local governmental agencies to regulate the discharge of contaminants to the sewer collection system that may adversely affect water recycling and reuse. 4.Establish unreasonable regulatory requirements or fees to the safe use of recycled water, which may unreasonably impede or create a disincentive to its further development. 5.Mandate the reduction of wastewater discharges to the ocean absent inclusion of funding to offset the significant costs of implementation. 6.Water use efficiency standards (AB 1668), which do not reflect the impact that higher TDS recycled water has on the usage rates to reduce salt loading in areas of use. XIII.Water Services and Facilities Support initiatives that: 1.Provide funding to implement actions identified in the California Water Action Plan to lay a solid fiscal foundation for implementing near-term actions, including funding for water efficiency projects, wetland and watershed restoration, groundwater programs, conservation, flood control, and integrated water management and result in a reliable supply of high-quality water for the San Diego region. 2.Provide financial support to projects designed to mitigate the potential negative impacts of Global Climate Change on water supply reliability. 3.2.Promote the coordination and integration of local, state, and federal climate change policies and practices to the greatest extent feasible. 4.3.Fund or otherwise facilitate ongoing implementation of the Quantification Settlement Agreement. 5.4.Provide reliable water supplies to meet California’s short and long-term needs. 6.5.Promote desalination pilot studies and projects. 7.6.Encourage feasibility studies of water resource initiatives. 8.7.Increase funding for infrastructure and grant programs for construction, modernization or expansion of water, wastewater treatment, reclamation facilities and sewer systems including water recycling, groundwater recovery and recharge, surface water development projects and seawater desalination. 9.8.Fund enhancements to water treatment, recycling, and other facilities to meet increased regulations. 10.9. Mandate uniform or similar regulations and procedures by state agencies in the processing and administering of grants and programs. 11.10. Streamline grant application procedures. 12.11. Reduce regulations and other impediments for willing sellers and buyers to engage in water transfer agreements. 13.12. Promote or assist voluntary water transfers between willing buyers and willing sellers and move those transactions through without delay. 14.13. Streamline the permitting and approval process for desalination and other water- related facilities and implementing water transfers that will improve water management. 15.14. Establish reasonable statewide approaches to sewer reporting standards. Otay Water District Legislative Program 20222023 22 | P a g e 16.15. Generate greater efficiencies, better coordinate program delivery, and eliminate duplication in programs for source water protection without lessening the focus on public health of the state’s Drinking Water Program. 17.16. Target efforts to fix specific issues with water supplies within the state’s Drinking Water Program. 18.17. Establish federal tax incentives to support U.S. companies in the development of new desalination technologies that can lower productions costs, eliminate or reduce impingement or entrainment, reduce energy use, and enhance public acceptance of desalinated water. 19.18. Establish a comprehensive national research and development, and technology demonstration program to advance the scientific understanding of desalination to expand its use as an alternative source of water supply. 20.19. Require the State Water Resources Control Board to exercise its authority, ensure robust funding, and implement the Salton Sea mitigation and restoration plan, meet state obligations, and work with QSA stakeholders to find workable solutions to ensure the continuation of IID water transfers. 21.20. Support solutions to water supply issues that address common challenges, provide a comprehensive approach that is fair to all users, balance the needs of urban and rural communities, and take into consideration the interests of all stakeholders as well as the impact to the environment. 22.21. Further refine emergency drought regulations to eliminate a cap on credits and adjustments so as not to impose undue burden, financial or otherwise, on communities that have already invested in water conservation, development of new water sources, storage, or loss prevention. 23.22. Provide funding for water infrastructure development, infrastructure security, and rehabilitation and replacement projects that benefit ratepayers. 24.23. Provide funding for habitat preservation programs that address impacts resulting from construction or operation of water system facilities. 25.24. Provide funding for projects that enhance security against terrorist acts or other criminal threats to water operation, services, facilities, or supplies. 26.25. Provide incentives that encourage contractors to recycle or reduce waste associated with construction of water facilities. 27.26. Improve the local agencies’ efforts to maintain and protect its property, rights of way, easements, pipelines, and related facilities and minimizes liability to local agencies and the District. 28.27. Protect the local agencies’ properties from restrictions when surrounding properties are incorporated into preservation areas. 29.28. Encourage the use of current and emerging technologies for monitoring and assessing the condition of large diameter pipelines. 30.29. Encourage water supplier to develop and execute asset management programs that include visual inspections, internal/external inspections, asset condition assessments, corrosion mitigation, and reis analysis in a manner that recognizes the individuality and uniqueness of each water supplier and its systems. 31.30. Improve the District’s efforts to maintain and protect its property, rights of way, easements, pipelines, and related facilities and minimizes liability to the District. 32.31. Protect the District, other agencies and the Water Authority properties from restrictions when surrounding properties are incorporated into preservation areas. Otay Water District Legislative Program 20222023 23 | P a g e 33.32. Provide funding to water agencies for the voluntary retrofit of facilities for on-site generation of chlorine. 34.33. Provide funding for water supplier asset management programs that involve the active monitoring, repair, or replacement of physical assets and infrastructure, which includes pipes, valves, facilities, equipment, and other infrastructure. 35.34. Provide for restrictions on price gouging during public safety power shutoff events and for at least 72 hours following restoration of power. 36.35. Provide that de-energization or public safety power shutoff events may be included as a condition constituting a state of emergency or local emergency. 37.36. Provide a tax emption for the sale of, or storage, use, or consumption of, a backup electrical resources, that is purchased for exclusive use by a city, county, special district, or other entity of local government during a de-energization or public safety power shutoff event. 38.37. State that the use of alternative power sources (such as generators) by essential public services during de-energization or public safety power shutoff events shall not be limited by any state or local regulations or rules. 39.38. Recognize the critical role the District, local agencies, and the Water Authority play as Public Safety Partners in Public Safety Power Shutoff events and other natural or man-made disasters. Further recognizes the importance of the agency’s ability to provide immediate and sustained response for extended periods of time. 40.39. Provide financial support to local projects designed to mitigate or adapt to potential negative impacts of climate change on water supply reliability. 41.40. Investigate and provide financial support to projects designed to mitigate potential negative impacts of climate change on water supply reliability. Oppose initiatives that: 1.Restrict local control and discretions over water facilities, asset management, and facility operations. 2.Make urban water supplies less reliable or substantially increase the cost of imported water without also improving the reliability and/or quality of the water. 3.Create unrealistic or costly water testing or reporting protocol. 4.Disproportionately apportion the cost of water. 5.Create undo hurtles for seawater desalination projects. 6.Create unreasonable or confusing sewer reporting standards. 7.Create administrative or other barriers to sales between willing buyers and willing sellers that delay water transfers. 8.Create a broad-based user fee that does not support a specific local program activity or benefit; any fee must provide a clear nexus to the benefit local ratepayers or local water supplies from the establishment that charge or fee would provide. 9.Create unrealistic or costly to obtain water quality standards for potable water, recycled water, or storm water runoff. 10.Change the focus of the state’s Drinking Water Program or weaken the parts of the program that work well. 11.Lessen the focus on public health of the state’s Drinking Water Program. 12.Impose undue burden, financial or otherwise, on communities that have already invested in water conservation, development of new water sources, storage, or loss prevention. Otay Water District Legislative Program 20222023 24 | P a g e 13.Impose additional mitigation costs or obligations for the Salton Sea on the non-state parties to the Quantification Settlement Agreement. 14.Impair the District and other local water agencies’ ability to provide and operate the necessary facilities for a safe, reliable, and operational flexible water system. 15.Limit local agencies’ sole jurisdiction over planning, design, routing, approval, construction, operation, or maintenance of water facilities. 16.Restrict local agencies’ ability to respond swiftly and decisively to an emergency that threatens to disrupt water deliveries or restricts the draining of pipelines or other facilities in emergencies for repairs or preventive maintenance. 17.Authorize state and federal wildlife agencies to control, prevent, or eradicate invasive species in a way that excessively interferes with the operations of water supplies. 18.Prohibit or in any way limit the ability of local agencies from making full beneficial use of any water, wastewater, or recycling facility and resource investments. 19.Prohibit the use of alternative contract procurement methods that can be utilized in the construction of water facilities. 20.Shift the risks of indemnity for damages and defense of claims from contractors to the District. 21.Impair local agencies’ efforts to acquire property or property interests required for essential capital improvement projects or acquisition of property to meet pipeline water drain-down needs for existing facilities. 22.Increase the cost of property and right of way acquisition. 23.Restrict the District’s use of public rights of way or increase the cost of using public rights of way. 24.Restrict the transfer of property acquired for purposes of environmental mitigation or environmental mitigation credits to other public or private entities for long-term management. 25.Establish prescriptive leak loss control requirements for the operation, maintenance, and asset management of water conveyance and distribution systems, that fail to consider full life-cycle costing. 26.Establish meter testing requirements for source water meters that fail to consider industry standards and cost-effectiveness. 27.Limit the discretion of the District from protecting security and privacy of comprehensive inventories of all assets, which includes infrastructure location, condition, performance, and useful life. 28.Impair local agencies’ ability to execute the planning, design, and construction of projects using its own employees. 29.Limit the autonomy of discretion of water supplier to develop and execute asset management inspection programs that include visual inspections, internal/external inspections, asset condition assessments, and corrosion mitigation in a manner that recognizes the individuality and uniqueness of each water supplier and its systems. 30.Authorize air quality management districts or other regulatory bodies to adopt or maintain rules that would limit or prohibit a local government entity’s use of a state and/or federally complaint natural gas-powered generator during a de-energization or public safety power shutoff event. 31.Through the CARB Advanced Clean Fleet regulation, wWould inhibit the District from fulfilling its critical role as a Public Safety Partner and making immediate and sustained Otay Water District Legislative Program 20222023 25 | P a g e response in a Public Safety Power Shutoff event or and other natural or man-made disasters, such as the CARB Advanced Clean Fleet regulation. 32.Through the CARB Advanced Clean Fleet regulation, wWould inhibit the District from fulfilling its critical role as an essential service provider from procuring and operating fleets which meet the needs to perform routine and emergency maintenance of water and wastewater systems, such as the CARB Advanced Clean Fleet regulation. 33.Require incorporation of climate change considerations into regional and local water management planning that does not provide flexibility to the local and regional water agencies in determining the climate change impact and identification of adaptation and mitigation measures. 34.Impose top-down “one-size-fits-all” climate change mandates that fail to account for hydrological, meteorological, economic, and social variation across the state and/or that fail to incorporate local and regional planning and implementation priorities and protocols. XIV.Water-Use Efficiency Support initiatives that: 1.Provide funding for incentives for water-use efficiency and water conservation programs including water-efficient devices, practices and demonstration projects and studies. 2.Encourage the installation of water-efficient fixtures in new and existing buildings. 3.Promote the environmental benefits of water-use efficiency and water conservation. 4.Enhance efforts to promote water-use efficiency awareness. 5.Offer incentives for landscape water-efficient devices including, but not limited to ET controllers and soil moisture sensors. 6.Develop landscape retrofit incentive programs and/or irrigation retrofit incentive programs. 7.Permit or require local agencies to adopt ordinances that require or promote water-efficient landscapes for commercial and residential developments. 8.Create tax incentives for citizens or developers who install water-efficient landscapes. 9.Create tax incentives for citizens who purchase high-efficiency clothes washers, dual-flush and high-efficiency toilets, and irrigation controllers above the state standards. 10.Expand community-based water-use efficiency and education programs. 11.Facilitate and encourage the use of rainwater-capture systems, i.e., rain barrels, cisterns, etc. and alternative water sources, i.e., air conditioner condensate for use in irrigation. 12.Develop incentives for developers and existing customers to install water-efficient landscape in existing developments or new construction. 13.Encourage large state users to save water by implementing water-efficient technologies in all facilities both new and retrofit. 14.Encourage large state water users to save water outdoors. 15.Educate all Californians on the importance of water, and the need to conserve, manage, and plan for the future needs. 16.Encourage technological research targeted to more efficient water use. 17.Give local agencies maximum discretion in selecting water-use efficiency and conservation programs that work for their customers and the communities they serve. 18.Require the Department of Water Resources to implement a uniform statewide turf rebate subsidy or incentive program. Otay Water District Legislative Program 20222023 26 | P a g e 19. Restrict Property Owner Associations from forbidding the use of California native plants, other low water use plants, mulch, artificial turf, or semi-permeable materials in well- maintained landscapes. 20. Restrict Property Owner Associations from forbidding retrofits of multiple unit facilities for the purpose of submetering, if feasible. 21. Ensure plumbing codes and standards that facilitate the installation and/or retrofit of water efficient devices. 22. Establish standards for the utilization of high-efficiency commercial coin-operated and residential clothes washers. 23. Provides for federal tax-exempt status for water-use efficiency rebates, consistent with income tax treatment at the state level. 24. Encourage the use of graywater where it complies with local guidelines and regulations and is cost-effective. 25. Provide incentives, funding, and assistance to water agencies so that they can meet the water demand management measure requirements in the Urban Water Management Planning Act. 26. Provide incentives, funding, and other assistance to facilitate water-use efficiency partnerships with the energy efficiency sector. 27. Provide incentives, funding, and other assistance where needed to facilitate market transformation and gain wider implementation of water efficient indoor and outdoor technologies and practices. 28. Recognize local control in determining water use efficiency criteria, such as impact of recycled water salinity on irrigation use and efficiency for the application of non-potable recycled water. 29. Encourage reasonable tracking of water use and improved efficiency in the Commercial, Industrial, and Institutional (CII) sector. 30. Recognize local control in determining how to meet an overall efficient water use goal, based on the combined efficient indoor use, outdoor use, and leak loss, as established under the criteria provided for in statute. 31. Further the statewide goal of a 20 percent reduction in per capita water use by 2020 as set forth in SBX7-7, enacted in November 2009, and preserves water agency discretion and options for achieving this objective. 32. Ensure accurate and meaningful reporting of implementation of water-use efficiency and conservation measures. 33. Promote statewide implementation of water-use efficiency best management practices and demand management measures as defined in the Urban Water Management Planning Act. Oppose efforts that: 1. Weaken federal or state water-efficiency standards. 2. Introduce additional analytical and reporting requirements that are time-consuming for local agencies to perform and result in additional costs to consumers yet yield no water savings. 3. Permit Property Owners Associations to restrict low water use plants, mulch, artificial turf, or semi-permeable materials in landscaping. 4. Repeal cost-effective efficiency standards for water-using devices. 5. Repeal cost-effective efficiency standards for water-using devices. Otay Water District Legislative Program 20222023 27 | P a g e 6.Create stranded assets by establishing long-term demand management water-use efficiency and water supply requirements that are inconsistent with the Urban Water Management Planning Act. 7.Prescribe statewide mandatory urban and agricultural water-use efficiency practices, including, but not limited to, methods, measures, programs, budget allocation, and designation of staff dedicated to water conservation programs, that override the authority of the boards of directors of local water agencies to adopt management practices that are most appropriate for the specific needs of their water agencies. 8.Mandate regulation of the CII Sector in a manner that is discriminatory, or sets unachievable Best Management Practices or compliance targets, or would otherwise impair economic activity or the viability of the CII sector. 9.Mandate that water agencies include an embedded energy calculation for their water supply sources in the Urban Water Management Plan or any other water resource planning or master planning document. XV.Workforce Development Support initiatives that: 1.Advocate for local, regional, and state programs that support a high-performing workforce and increase the talent pool for water agencies. 2.Advocate for military veterans in the water industry workforce to ensure that veterans receive appropriate and satisfactory credit towards water and wastewater treatment system certifications in California for work experience, education, and knowledge gained in military service. 3.Lower employment barriers for military veterans and transitioning military and that sustain vital water and wastewater services for the next generation. 4.Recruit and support veterans and transitioning military through internships, cooperative work experiences, and other resources. 5.Recruit and support underserved communities in the water industry through internships, cooperative work experiences, and other resources. 6.Advocate and encourage candidate outreach and recruitment in relation to mission-critical job categories in water and wastewater. 7.Ensure advanced water treatment operators and distribution system operators of potable reuse and recycled water facilities have a career advancement path as certified water and/or wastewater treatment plant operators. 8.Increase the number of educational institutions that provide water-industry related training and related program criteria including but not limited to trades, certifications, and degrees. 9.Increase the talent pool of future water industry workers through educational programs, internships, and other resources. 10.Provide funding to educational institutions, water agencies, and workforce students regarding careers in the water industry. 11.Develop qualified candidates for positions in the water industry. Otay Water District Legislative Program 20222023 28 | P a g e 12.Build awareness of water industry-related jobs through student outreach including but not limited to K-12, community colleges, universities, and other educational institutions as well as outreach to the public. Oppose initiatives that: 1.Hinder military veterans from using previous experience, education, and knowledge toward a career in water. 2.Regulate agencies from hiring an experienced, educated, and talented water-industry workforce. Otay Water District Legislative Program 2023 1 | Page Effective Date: 04/05/2023 Legislative Program Policy Guidelines Purpose The Otay Water District’s 2023 legislative policy guidelines provide direction to staff and the District’s legislative advocates when they evaluate proposed legislation that may affect the District, other local water agencies, or regional water management and use. Legislation that meets or fails to meet, the principles set forth in the guidelines may be supported or opposed accordingly. The guidelines permit the General Manager, District staff, and the District’s legislative advocates to act in a timely fashion between Board meetings on issues that are clearly within the guidelines. While the title of this document suggests these policy guidelines are applicable solely to state and federal legislative issues reviewed by the District and its wholesale supplier the San Diego County Water Authority (Water Authority), increasingly state and federal regulatory and administrative bodies are developing rules, guidelines, white papers, and regulations that can significantly affect the District, its wholesale supplier, and other local water agencies. District staff, including the District’s legislative consultant, often utilize these Legislative Policy Guidelines to provide guidance on emerging and active regulatory and administrative issues. Legislation that does not meet the principles set forth in the guidelines or that has potentially complicated or varied implications will not be acted upon by staff or the legislative advocates in between Board meetings and will instead be presented to the Board directly for guidance in advance of any position being taken. The Water Authority has its own set of legislative guidelines that is a comprehensive program at a wholesale and regional level. District staff has evaluated and selected policies and issues from the Water Authority’s guidelines that may have a direct impact on the District. These policies and issues have been incorporated into the District’s guidelines. Although the District is a retail agency and is focused on its local service area, if there are issues or polices contained in the Water Authority’s Legislative Policy Guidelines that could benefit or impact the District, the General Manager, District staff, and the District’s legislative advocates may act on those issues, respectively. Attachment C Otay Water District Legislative Program 2023 2 | Page Table of Contents The Otay Water Legislative Policy Program Guidelines for 2023 includes the following categories: I.Binational Issues…………………………………………....……………... Page 3 II.Biological and Habitat Preservation…………………………………….. Page 3 III.Desalination……………………………………………………………….. Page 4 IV.Drought Response………………………………………………………… Page 4 V.Energy……………………………………………………………………… Page 5 VI.Financial Issues…………………………………………………………… Page 6 A.Fees, Taxes, and Charges………………………….......................... Page 6 B.Funding…………………………………………………………….. Page 8 C.Rates………………………………………………………………... Page 10 D.Water Bonds……………………………………………………….. Page 10 E.Affordability……………………………………………………. Page 11 VII.Governance and Local Autonomy……………………………………….. Page 12 VIII.Imported Water Issues……………………………………………………. Page 13 A. Bay-Delta……………………………………………………………… Page 13 i.Co-equal Goals……………………………………………………. Page 14 ii.Bay-Delta Conveyance Project…………………………………… Page 14 B.Metropolitan Water District…………………………………………… Page 15 C.Colorado River………………………………………………………… Page 15 D.State Water Project…………………………………………………….. Page 16 IX.Optimize District Effectiveness……………………...…………....………. Page 17 X.Safety, Security, and Information Technology……………....................... Page 17 XI.Water Quality Issues………………………………………………………. Page 18 XII.Water Recycling and Potable Reuse……………………………………… Page 19 XIII. Water Service and Facilities……………………………………………… Page 21 XIV.Water-Use Efficiency……………………………………………………… Page 25 XV.Workforce Development………………………………………………….. Page 27 Otay Water District Legislative Program 2023 3 | Page I. Binational Issues Support initiatives that: 1. Promote and provide funding for cross-border water supply and infrastructure development projects to serve the San Diego/Baja California border region while protecting local interests. 2. Encourage enhanced cooperation between entities in San Diego and Baja California in development of supply and infrastructure projects that will benefit the entire border region. 3. Encourage state and federal funding to support collaborative binational projects to improve water quality and protect human health and the environment within the broader San Diego region. 4. Develop and enhance communications and understanding of the interdependence of communities on both sides of the border with the goal of improved cross-border cooperation. Oppose initiatives that: 1. Would usurp local control over the financing and construction of water supply and infrastructure projects in the San Diego/Baja California region. II. Biological and Habitat Preservation Support initiatives that: 1. Support development of comprehensive multispecies habitat conservation plants that anticipate and mitigate project development impacts while preserving representative ecosystems, rather than individual species. 2. Exempt operation, maintenance, and repair of water system facilities from endangered species and other habitat conservation regulations because they provide beneficial cyclical habitat values to declining species and foster biological diversity in California. 3. Provide environmental regulatory certainty for implementation of existing and proposed long-term water supply programs. 4. Streamline filing of CEQA notices of determination for multicounty water projects by making those notices available on the CEQAnet website through the Governor’s office of Planning and Research. 5. Incorporate an emergency exemption for “take” of a listed species listed under the state or federal Endangered Species Acts when necessary to mitigate or prevent loss of or damage to life, health, property, or essential public services. 6. Encourage species listings, critical habitat designation, and recovery plans developed pursuant to the state or federal Endangered Species Acts to be consistent with existing interstate compacts, tribal treaties, and other state and federal agreements. Oppose initiatives that: 1. Reduce or limit the use of existing water rights or supplies, 2. Restrict the development of future water supplies. 3. Impose endangered species or habitat conservation requirements that restrict the operation, maintenance, or repair of public water supply, conveyance, treatment, or storage facilities. Otay Water District Legislative Program 2023 4 | Page III.Desalination Support initiatives that: 1. Provide funding for seawater desalination studies and facilities.2.Recognize and support the development of seawater desalination as critical new water supplyfor the state, including San Diego County.3.Streamline permitting of desalination facilities. 4.Preserve and protects potential seawater desalination sites and existing coastal facilities including intake and discharge infrastructure that could be used or reused by a seawaterdesalination facility.5.Ensure that desalination intake and discharge regulations are science-based, considering site-specific conditions, and recognizing that not all technologies or mitigation strategies are feasible or cost-effective at every site. IV.Drought Response Support initiatives that: 1.Ensure the District and other local agencies including the Water Authority and San Diego County water agencies receive the water supply benefits of investments in local water supply sources. 2.Allow local agencies to achieve compliance with emergency or nonemergency drought regulations or objectives through a combination of water conservation measures and development and implementation of local water supply sources that are not derived from the Delta. 3.Allow for local agencies to account for all water supplies available during droughts and other events when calculating the water supply shortage level. 4.Create a process for development and implementation of emergency drought declarations and regulations that recognizes variations among communities, regions, and counties with respect to their abilities to withstand the impacts and effects of drought. 5.Recognize variations among communities, regions, and counties with respect to their abilities to withstand the impacts and effects of droughts and ensure that any temporary or permanent statutory or regulatory direction for improving water-use efficiency to meet statutory or regulatory goals or standards is focused on regional achievement of objectives rather than a one-size-fits-all approach. Oppose initiatives that: 1.Disincentivize or impede water agencies from making investments to maximize the potential for recycled water, potable reuse, desalination, and other drought-resilient local water supplies. 2.Create a “one-size-fits-all” approach to emergency drought declarations and regulations that ignores variations among communities, regions, and counties with respect to their ability to withstand the impacts and effects of drought. Otay Water District Legislative Program 2023 5 | Page V.Energy Support initiatives that: 1.Provide opportunities for reduced energy rates under tariff schedules for the District and other local water agencies. 2.Provide protection to the District and other local water agencies from energy rate increases and provides rate relief for the District and water agencies. 3. Provide funding, including state and federal grants, for in-line hydro-electric, solar, wind, battery storage, biogas, cogeneration, nanogrids, microgrids, closed-loop pumped storage facilities, and other renewable energy generation or storage technology as means of reducing greenhouse gas emissions and energy cost. 4.Promote funding for use of renewable energy in the operation of District facilities. 5.Prohibit investor-owned utilities from implementing rate changes that undercut the financial viability of renewable energy facilities obligated under long-term Power Purchase Agreements. 6.Provide greater flexibility in the utilization of the District’s facilities for generation and acquisition of electrical and natural gas power. 7.Provide the District with greater flexibility in the licensing, permitting, interconnection, construction, and the operation of its existing and potential in-line hydroelectric, solar, wind, battery, nanogrid, microgrid, closed-loop pumped-energy storage projects, and other renewable generation or storage technology. 8.Make SWP power available for all water projects. 9.Promote the classification of electricity generated by in-line hydroelectric and closed-loop pumped-energy storage facilities as environmentally sound. 10.Promote the expansion of closed-loop pumped-energy storage facilities to provide clean and environmentally sound energy resource that provides electric and reliability and resiliency, especially during times of potential blackouts. 11.Promote the expansion of in-line hydroelectric energy recovery systems at treatment facility discharge systems. 12.Promote the production, purchase, delivery, and use of alternative sources of energy on a wholesale basis. 13.Provide clear statutory, regulatory, or administrative authority for the Water Authority to wheel acquired or produced power to itself, the District, or entities with which the Water Authority is under contract for the purchase, treatment, transport, or production of water. 14.Recognize and monetize all grid ancillary services that pumped hydro-energy storage provides and supports fair compensation in the wholesale energy market for such services. 15. Provides timely, efficient, and cost-effective interconnection of new energy resources such as solar, inline hydroelectric, pumped-energy storage, and other renewable energy generation or storage technologies to the electric distribution and transmission grid. Otay Water District Legislative Program 2023 6 | Page 16.Recognize the value of large-scale hydropower and pumped-energy storage facilities in assisting the state to meet its renewable and zero-carbon emission goals of 100 percent by 2045. Oppose initiatives that: 1.Adversely affect the cost of energy needed to operate MWD’s facilities, SWP facilities, or the facilities of the Water Authority and the District. 2. Impose greenhouse gas reduction obligations on a public water agency for electricity purchased or produced for the sole purpose of operating its system. 3.Adversely affect the ability of the District or other water agencies in the county to own, operate, and/or construct work for supplying its own facilities with natural gas and electricity. 4.Impede the District or other water agencies in the county, the ability to contract for, deliver, and use natural gas or electricity purchased from the United States, the State of California, and any other public agency or private entity and provide, sell, exchange, or deliver the gas or electricity to itself, any public agency or private entity. 5.Reduce the District’s ability to always maintain high operational efficiency. 6.Restrict the District’s ability to expand or improve infrastructure or facilities. 7. Restrict or caps future energy demands needed for possible expansion of recycled water, potable reuse, and/or desalination projects. 8.Adversely affect the District’s ability to expand cogeneration or polygeneration at planned or existing facilities. 9. Inhibit the scientific advancement of energy and water efficient/conserving technologies that may be implemented at the District or other agency facilities. 10.Prevent the District from enhancing energy reliability and independence for its facilities. 11. Do not count or credit qualified renewable energy projects toward accomplishment and satisfaction of the California Renewables Portfolio Standard objectives. 12.Prohibit the Water Authority from wheeling - or securing statutory, regulatory, or administrative authority necessary to wheel - acquired or produced power to itself, the District, or other entities with which the Water Authority is under contract of the purchase, treatment, transport, or production of water. 13. Result in a lengthy, more complicated, or more costly interconnection of new energy resources, such as solar, inline-hydroelectric, pumped-energy storage, and other renewable energy generation or storage technologies to the electric distribution and transmission grid. VI.Financial Issues A.Fees, Taxes, and Charges Support initiatives that: 1. Require the federal government and State of California to reimburse special districts forall mandated costs or regulatory actions.2.Give special districts the discretion to cease performance of unfunded mandates. Otay Water District Legislative Program 2023 7 | Page 3. Provide for fiscal reform to enhance the equity, reliability, and certainty of special district funding. 4. Provide incentives for local agencies to work cooperatively, share costs or resources. 5. Provide for the stable, equitable and reliable allocation of property taxes. 6. Continue to reform workers compensation. 7. Promote competition in insurance underwriting for public agencies. 8. Produce tangible results, such as water supply reliability or water quality improvement. 9. Require the Metropolitan Water District of Southern California (MWD) to refund or credit to its member agencies revenues collected from them that result in reserve balances greater than the maximum reserve levels established pursuant to state legislation. Oppose initiatives that: 1. Impose mandated costs or regulatory constraints on local agencies and their customers without providing subventions to reimburse local agencies for such costs. 2. Pre-empt the District or local water agencies’ ability to impose or change rates, charges, fees, or assessments. 3. Weaken the protections afforded the District, the Water Authority or other local water agencies under California’s Proposition 1A (November 2, 2004). 4. Reallocate special districts reserves to balance the state budget. 5. Reallocate special district revenues or reserves to fund infrastructure improvements or other activities in cities or counties. 6. Establish funding mechanisms that put undue burdens on local agencies or make local agencies de facto tax collectors for the state. 7. Adversely affect the cost of gas and electricity or reduce an organization’s flexibility to take advantage of low peak cost periods. 8. Add new reporting criteria, burdensome, unnecessary, or costly reporting mandates to Urban Water Management Plans. 9. Add new mandates to the Department of Water Resources (DWR) to review and approve Urban Water Management Plans beyond those already addressed in DWR guidelines. 10. Mandate that water agencies include an embedded energy calculation for their water supply sources in Urban Water Management Plans or any other water resources planning or master-planning document. 11. Weaken existing project retention and withholding provisions that limit the ability of public agencies to drive contractor performance. 12. Establish change order requirements that place an unreasonable burden on local agencies, or raise financial risk associated with public works contracts. 13. Impair the Water Authority or its member agencies’ ability to provide reasonable service at reasonable costs to member agencies or to charge all member agencies the same rate for each class of service consistent with cost-of-service requirements of the law. 14. Impair the local water agencies’ ability to maintain reasonable reserve funds and obtain and retain reasonable rates of return on its reserve accounts. 15. Mandate a specific rate structure for retail water agencies. 16. Impose a water user fee on water agencies or water users that does not provide a commensurate and directly linked benefit in the local area or region from which the water user fee is collected. Otay Water District Legislative Program 2023 8 | Page 17. Impose a water user fee for statewide projects or programs, for which the projects or programs are not clearly defined, the beneficiaries identified, and reasonable costs identified. 18. Impose a water user fee to create a state fund that can be used to finance undefined future projects and programs. 19. Allow the state to retain more than five percent of water user fees for administrative costs. 20. Do not restrict the use of water user fees to only the specific purposes for which they are imposed, without any possibility of diversion to meet other fiscal needs of the state. 21. Impose a “public goods charge” or “water tax” on public water agencies or their ratepayers. 22. Impose a fee on water users to repay the principal and interest on a statewide general obligation bond. 23. Establish regulatory or permit fees that lack a nexus to the costs of oversight. 24. Establish a broad-based user fee that does not support a specific program activity; any fee must provide a clear nexus to the benefit the fee would provide. B. Funding Support initiatives that: 1. Require the federal and state governments to provide subvention to reimburse local governments for all mandated costs or regulatory actions. 2. Provide the District, the Water Authority, and other local water agencies with additional forms of cost-effective financing for public facilities. 3. Revitalize the Title XVI federal funding program by converting new authorizations to a competitive grant program with congressional oversight while protecting existing Title XVI authorizations for the San Diego region. 4. Provide the District, Water Authority, and local water agencies with grant funding for public facilities, including developing local water resources and rehabilitation and repair of aging infrastructure, such as pipelines. 5. Provide the District, other local water agencies, and water ratepayers with post-COVID-19 financial relief through a variety of means, including but not limited to, direct financial assistance and flexibility in debt management to assist water ratepayers and water suppliers. 6. Authorize financing of water quality, water security, and water supply infrastructure improvement programs. 7. Establish spending caps on State of California overhead when administering voter approved grant and disbursement programs. 8. Require disbursement decisions in a manner appropriate to the service in question. 9. Encourage funding infrastructure programs that are currently in place and that have been proven effective. 10. Provide financial incentives for energy projects that increase reliability, diversity, and reduce greenhouse gasses. 11. Continue energy rate incentives for the utilization of electricity during low-peak periods. Otay Water District Legislative Program 2023 9 | Page 12. Provide loan or grant programs that encourage water conservation for water users who are least able to pay for capital projects. 13. Provide for population-based distribution of IRWM funds to ensure adequate distribution of grant funding throughout the state. 14. Provide for the use of state grant funds for binational projects where the projects benefit water supply or water quality in the San Diego region. 15. Improve and streamline the state’s reimbursement process to ensure timely remittance of IRWM funds. 16. Promote the ability of the Regional Water Management Group to administer state grant funds specifically identified more directly for IRWM Programs. 17. Require the state to rely on the local process for selection and ranking of projects included in an approved IRWM plan. 18. Provide funding or other incentives for conservation, peak management programs, water recycling, potable reuse, groundwater recovery and recharge, surface water development and management projects, including reservoir management, source water protection and watershed planning studies and facilities that sustain long-term reliable water resources. 19. Provide financial incentives to assist in the disposal of concentrate, sludge, and other byproducts created in the water treatment process. 20. Authorize, promote, and provide incentives or credits for development of local drought-resilient water supply projects such as desalination, non-potable recycling, and potable reuse projects. 21. Provide funding for potable reuse demonstration projects and studies. 22. Provide funding for infrastructure improvements at desalination facilities with eligibility for public and private partnerships. 23. Authorize federal and state funding to develop and implement regional or subregional conservation programs, including but not limited to property acquisition, revegetation programs, and watershed plans. 24. Provide state and/or federal funding for the restoration of the Salton Sea. 25. Provide federal and/or state funding to implement actions that address the ecological and water supply management issues of the Lower Colorado River from Lee's Ferry to the southerly international border with Mexico. 26. Provide federal and/or state funding to implement actions that address the ecological and water supply management issues of the Sacramento-San Joaquin River Delta. 27. Permit the use of grant funding for projects implemented under public-private partnerships where the grant provides funding for a public benefit. 28. Require the state agencies responsible for preparing the IRWM grant program guidelines to conduct a comprehensive public outreach process that ensures stakeholders have an opportunity to provide adequate input on preparation of the guidelines and that the state agencies consider and respond to comments received through the outreach process. 29. Provide incentive, funding, and assistance to water agencies so that they can comply with AB 32 (2006) requirements, and updated statutory requirements imposed pursuant to SB 32 (2016), SB 100 (2018), and SB 1020 (2022). Oppose initiatives that: Otay Water District Legislative Program 2023 10 | Page 1.Impose additional administrative requirements and/or restrict the District’s, WaterAuthority’s, or other local water agencies’ ability to finance public facilities through theissuance of long-term debt. 2. Interfere with the responsibility of a region, operating under an Integrated Regional WaterManagement Plan, for setting priorities and generating projects to be paid from anyIRWM accounts and grants.3. Interfere with the control exercised by the San Diego funding subregion over the use andexpenditure of any water-user fee revenues that may be dedicated to the region. 4.Establish IRWM funding criteria that limits local discretion in project selection.5.Provide for after-the-fact reduction in quantity or quality of a public water supply due tonew restrictions on the operation or use of water supply facilities unless funding foralternate sources of water is provided.6. Impose a "utility user fee" or "surcharge" on water for the purposes of financing open space/habitat preservation, restoration, or creation. C. Rates Support initiatives that: 1.Maintain the authority of water agencies to establish water rates locally, consistent with cost-of-service requirements of the law.2.Maximize the ability of water agencies to design rate structures to meet local water supplygoals and that conform to cost-of-service requirements of the law. Oppose initiatives that: 1.Impair the District’s, the Water Authority’s, or local water agencies’ ability to providereliable service at reasonable costs to member agencies or to charge all member agenciesthe same or similar rate for each class of service consistent with cost-of-servicerequirements of the law. 2. Undermine or weaken cost-of-service rate-making requirements in existing law. 3.Impair the District’s ability to maintain reasonable reserve funds and obtain and retainreasonable rates of return on its reserve accounts.4.Mandate a specific rate structure for retail water agencies.5.Prescribe mandatory conservation-based rate structures that override the authority of the boards of directors of local water agencies to set rate structures according to the specific needs of the water agencies.6.Usurp special district funds, reserves, or other state actions that force special districts toraise rates, fees, or charges. D.Water Bonds Support initiatives that: 1. Provide an equitable share of funding to San Diego County, with major funding categoriesbeing divided by county and funded on a per-capita basis to ensure bond proceeds are distributed throughout the state in proportion to taxpayers’ payments on the bonds. 2. Focus on statewide priorities, including restoration of fish and wildlife habitat,construction of an improved method of conveyance of water through or around the Delta Otay Water District Legislative Program 2023 11 | Page that provides water supply reliability to Delta water users, promotion of greater regional and local self-sufficiency, surface storage, and promotion of water-use efficiency. 3. Ensure funding from various propositions for local and regional water-related projects. 4. Include within IRWM funding money that a region may use over time to develop andrefine its plan and to develop institutional structures necessary to establish and implementthe plan.5.Give primary consideration to funding priorities established by local and regional entitiesthrough their IRWM planning process. 6. Ensure the application process for funding is not unnecessarily burdensome and costly,with an emphasis on streamlining the process.7.Limit state overhead to no more than five percent of bond funding amounts.8.Place as much emphasis and provides at least as much funding for surface storage as forgroundwater storage. 9.Define the “San Diego sub-region” and “San Diego county watersheds” as “those portionsof the westward-flowing watershed of the South Coast hydrologic region situated withinthe boundaries of San Diego County.”10. Fund emergency and carryover storage projects.11. Consolidate administration of all voter-approved water-related bond funding in one place, preserves existing expertise within the state bureaucracy to manage bond-fundingprocesses, and provide consistent application and evaluation of bond funding applications.12. Provide the state’s share of funding for projects that advance the achievement of the co-equal goals of water supply reliability and Delta ecosystem restoration.13. Provide funding for water infrastructure that resolve conflicts in the state’s water system and provide long-term benefits to statewide issues including water supply, reliability,water quality, and ecosystem restoration. Oppose initiatives that: 1. Do not provide an equitable share of funding to San Diego County based on the San Diego County taxpayers’ proportional contribution to repayment of the bonds.2. Do not provide funding for infrastructure that resolves statewide or regional conflicts ofwater supplies.3. Do not provide funding that result in net increases in real water supply and water supply reliability. 4. Commit a significant portion of bond funding to projects that do not result in net increasesin real water supply or water supply reliability. E.Affordability Support initiatives that: 1. Abides by the Human Right to Water (AB 685, 2012) as set forth in Section 106.3 of theCalifornia Water Code which reads that, “every human being has the right to safe,affordable, and accessible water adequate for human consumption, cooking, and sanitarypurposes.” The State Water Resources Control Board also has a resolution supporting this program. 2.Meets the required standards under Proposition 218 in the California Constitutionregarding proportionality of water rates and the cost-of-service provisions.3. Relies on data-driven analysis of water affordability, including considerations such as Otay Water District Legislative Program 2023 12 | Page census data and economically-disadvantaged communities. As such, the District supports the continued implementation of AB 2334 (2012) that requires the Department of Water Resources to provide this analysis and place it in California’s Water Plan. 4. Supports the creation of a low-income water rate assistance program that targets providing financial assistance to low-income ratepayers using existing resources within either the state General Fund or cap-and-trade dollars. 5. Does not burden water districts with excessive or overly prescriptive state mandates including the collection of water taxes or water rate and boundary data, and qualification of customers for low-income assistance programs. 6. Supports the expansion of the low-income assistance programs (LIHWAP) or other programs, using existing resources from the federal government, with the state General Fund or cap-and-trade dollars or other state financial resources. Oppose initiatives that: 1. Is not targeted appropriately: Any low-income water rate assistance program must be limited in scope to those individuals. By seeking to do too much, effectiveness could be limited. Examples of this could include extending program resources to domestic wells or water-use efficiency programs. 2. Does not have a funding source: Any low-income water rate assistance program needs to identify specific sources of sustainable funding and does not include a water tax or water surcharge. 3. Does not reinvent the wheel: Any low-income water rate assistance program should be built upon and use the resources of an existing benefit distribution organization or system, such as CalFresh, rather than requiring water agencies to add the operating expense of creating and administering a new method. VII. Governance and Local Autonomy Support initiatives that: 1. Expand local autonomy in governing special district affairs. 2. Promote comprehensive long-range planning. 3. Assist local agencies in the logical and efficient extension of services and facilities to promote efficiency and avoid duplication of services. 4. Streamline the Municipal Service Review Process or set limits on how long services reviews can take or cost. 5. Reaffirm the existing “all-in” financial structure or protect the Water Authority voting structure based on population. 6. Promote measures that increase broader community and water industry representation/appointments on State decision making bodies. 7. Ensure an open and transparent process for adoption of regulations, policies, and guidelines. 8. Preserve the District and other local water agencies’ ability to establish local priorities for water resources planning decisions. Oppose initiatives that: 1. Assume the state legislature is better able to make local decisions that affect special district governance. Otay Water District Legislative Program 2023 13 | Page 2. Create one-size-fits-all approaches to special district reform. 3. Unfairly target one group of local elected officials. 4. Usurp local control from special districts regarding decisions involving local special district finance, operations, or governance. 5. Diminish the power or rights of the District’s governing body to govern the District’s affairs. 6. Diminish the power or rights of the District to govern relations with its employees. 7. Modify the committee or board voting structure or District and member agency board representation on the Water Authority Board of Directors unless such changes have been expressly authorized by the District’s Board. 8. Create unfunded local government mandates. 9. Create costly, unnecessary, or duplicative oversight roles for the state government of special district affairs. 10. Create new oversight roles or responsibility for monitoring special district affairs. 11. Change the San Diego County Water Authority Act regarding voting structure unless it is based on population. 12. Shift the liability to the public entity and relieve private entities of reasonable due diligence in their review of plans and specifications for errors, omissions, and other issues. 13. Place a significant and unreasonable burden on public agencies, resulting in increased cost for public works construction or their operation. 14. Impair the ability of water districts to acquire property or property interests required for essential capital improvement projects. 15. Increase the cost of property and right-of-way acquisition or restricts the use of right-of- ways. 16. Work to silence the voices of special districts and other local government associations on statewide ballot measures impacting local government policies and practices, including actions that could prohibit special districts and associations from advocating for positions on ballot measures by severely restricting the private resources used to fund those activities. 17. Prescribe mandatory conservation-based or other rate structures that override the authority of the board of directors to set its rate structure. 18. Circumvent the legislative committee process, such as the use of budget trailer bills, to advance policy issues including impacting special districts without full disclosure, transparency, or public involvement. 19. Restrict the District’s ability to utilize a demand forecasting methodology that is best suited locally and for the region. 20. Impose mandates requiring specific water resources be developed by water agencies that fail to consider local factors such as water reliability, hydrologic and geographic characteristics, and the economic, political, public acceptance, social environment, which can influence selection of resources and/or fails to consider or conflicts with existing local and regional planning policies and implementation priorities. 21. Limit the District’s ability to establish local priorities for water resources planning decisions. VIII. Imported Water Issues A. Bay-Delta Otay Water District Legislative Program 2023 14 | Page i.Co-Equal Goals Support initiatives that: 1.Require the Delta Stewardship Council or DWR to provide periodic analyses of the cost of theproposed Delta improvements to the Legislature and the public.2.Provides conveyance and storage facilities that are cost-effective for the San Diego region’sratepayers, improve the reliability and quality of the San Diego region’s water supplies, and protect the Bay-Delta’s ecosystem. 3.Continue to support the co-equal goals of water supply reliability and environmentalrestoration embodied in the 2009 Delta bill package.4.Improve the ability of water-users to divert water from the Delta during wet periods, whenimpacts on fish and the ecosystem are lower and water quality is higher. 5.Encourage the development of a statewide water transfer market that will improve water management and allow more efficient use of available resources.6.Support improved coordination of Central Valley Project and State Water Project (SWP)operations and implementation of voluntary agreement that are fair to the users of bothprojects and do not unfairly shift costs to SWP contractors. 7. Support continued state ownership and operation of the SWP, including project facilities, as a public resource.8. Ensure that any reorganization of the State Water Project, including operations andmanagement, preserves the ability for non-State Water Project contractors to access thefacility for transportation of water to a non-State Water Project contractor. 9. Authorize and appropriate the federal share of funding for the long-term Bay-Delta solution, including for the EcoRestore Program.10. Provide the ongoing state share of funding for the EcoRestore Program.11. Provide state funding for aquatic toxicity monitoring in the Bay-Delta. Such legislation shouldnot place a surcharge on water supply exports, nor should it substantively reduce funding for other measures that protect the environment and public health. Oppose efforts that: 1. Impose water user fees to fund ecosystem restoration and other public purpose, nonwater-supply improvements in the Delta that benefit the public at large. 2.Transfer operational control of the State Water Project or any of its facilities to the Metropolitan Water District of Southern California (MWD), the State Water Contractors, theCentral Valley Project Contractors, the State and Federal Contractors Water Agency, or anyentity comprised of MWD or other water project contractors, or any other special interestgroup. ii.Bay-Delta Conveyance Project Support initiatives that: 1.Are consistent with the Water Authority’s Board of Directors’ July 25, 2019 adopted Bay- Delta project policy principles, including the following: a.On April 29, 2019, Governor Newsom signed Executive Order N-10-19, directing thepreparation of a water resilience portfolio approach that meets the needs ofCalifornia’s communities, economy, and environment through the 21st century, Otay Water District Legislative Program 2023 15 | Page including consideration of multi-benefit approaches that meet multiple needs at once, and a single-user tunnel Bay-Delta project. b. The Water Authority’s Board supports Governor Newsome’s Executive Order N-10- 19 and directs staff to inform the Newsome Administration that its support for a single-tunnel Bay-Delta project is expressly conditioned upon the project costs being characterized by the Department of Water Resources (DWR) as conservation, or supply charges, as similar facilities historically have been defined in the Metropolitan Water District’s (MWD) SWP contract with DWR. c. As reflected in Table 2 of DWR’s Appendix B to Bulletin 132-17, Data and Computation Used to Determine Water Charges, and for which costs are recovered in Article 22(a) of Delta Water Charge of MWD’s SWP Contract; allow for the exemption of north-of-Delta SWP contractors. 2. Support the establishment of an independent and transparent oversight function to monitor and provide regular updates on project implementation progress, including expenditure tracking, construction progress, project participants’ contributions, and all other relevant activities and developments. 3. Allow access to all SWP facilities, including project facilities, to facilitate water transfers. B. Metropolitan Water District Support initiatives that: 1. Provide an appropriate level of accountability and cost control over MWD spending. 2. Protect and safeguard the Water Authority’s Preferential Rights in the Metropolitan Water District Act. 3. Require MWD to refund or credit to its member agencies revenues collected from them that result in reserve balances greater than the maximum reserve levels established pursuant to state legislation. 4. Require MWD to implement actions that advance and support its long-term financial stability, fiscal sustainability, and that moderate fluctuations in rates and charges for its member agencies from year to year, in a publicly transparent manner. 5. Amend the Metropolitan Water District Act to change voting allocation on its Board of Directors based on a member agency’s total financial contribution to MWD, and in a manner similar to the voting allocation method of the County Water Authority Act. C. Colorado River Support initiatives that: 1. Supports implementation and funding of the California Colorado River Water Use Plan, including the Lower Colorado River Multi-Species Conservation Program 2. Provide funding for Colorado River salinity control projects and other water quality management efforts. 3. Provide for state and federal authorizations and appropriations of non-fee-based funds to implement Salton Sea mitigation and the State’s phased approach to restoration in the form of the Salton Sea Management Program consistent with its obligations under Chapters 611, 612, and 613 of the Statutes of 2003. Otay Water District Legislative Program 2023 16 | Page 4.Limit the Quantification Settlement Agreement mitigation costs imposed on funding parties tothe amount committed in accordance with the original QSA legislation.5. Provide a governing structure and/or specified managing office over the state's Salton Sea Management Program to provide guidance and oversight of restoration activities.6. Support the sustainability of the Colorado River and provide operational flexibility throughthe development of storage, including Lake Mead and additional storage opportunitiesregionally, and through the renegotiation of the new interim shortage guidelines for continuedoperation of the River. 7. Allow for the option to create an alternate conveyance route, when technically and financiallyfeasible, for reliable delivery of the Water Authority’s Independent Colorado River watersupplies and integration of compatible partnership projects along the proposed conveyanceroutes as a model of the Governor’s Water Resilience Portfolio approach to watermanagement. 8.Support the State’s Salton Sea Management Program under the guidelines of the revisedWater Order (Stipulated Order) adopted by the State Water Resources Control Board inNovember 2017.9.Preserve the California Colorado River Board10.Ensure the interests of the members of the California Colorado River Board continue to be addressed in any state government reorganization.11.Allow for storage of the Water Authority’s Colorado River water supplies to provideenhanced flexibility with annual transfer volumes, support drought contingency planning, andalign with the Governor’s Water Resilience Portfolio approach to water management. Oppose initiatives that: 1. Impose additional mitigation costs or obligations for the Salton Sea on the non-state parties tothe Quantification Settlement Agreement.2.Eliminate the California Colorado River Board without providing a comparable structure or forum that ensures the Water Authority's interests in the Colorado River are preserved. D.State Water Project Support initiatives that: 1.Provide for development of a comprehensive state water plan that balances California's competing water needs, incorporates the water resources and infrastructure concepts includedin the Governor’s “Water Resilience Portfolio” and “California’s Water Supply StrategyAdapting to a Hotter, Drier, Future,” and results in a reliable and affordable supply of high-quality water for the State of California and the San Diego region. Oppose initiatives that: 1. Make urban water supplies less reliable or substantially increases the cost of imported waterwithout also improving the reliability and/or quality of the water.2.Revise the Central Valley Project Improvement Act to Jeopardize the Act's environmental integrity, compromise State Water Project supply reliability a n d/or limit the ability of urban agencies to transfer and/or bank CVP water for use both within and outside the CVP servicearea. Otay Water District Legislative Program 2023 17 | Page 3.Transfer operational control of the State Water Project or any of its facilities to MWD, the State Water Project contractors, Central Valley Project contractors, the State and Federal Contractors Water Agency, any entity comprised of MWD or other water project contractors, or any other special interest group. IX.Optimize District Effectiveness Support initiatives that: 1.Manage District resources in a transparent and fiscally responsible manner.2.Give utilities the ability to avoid critical peak energy pricing or negotiate energy contracts that save ratepayers money.3. Develop reasonable Air Pollution Control District engine permitting requirements.4.Reimburse or reduce local government mandates.5. Allow public agencies to continue offering defined benefit plans.6.Result in predictable costs and benefits for employees and taxpayers. 7.Eliminate abuses.8.Retain local control of pension systems.9.Are constitutional, federally legal, and technically possible. Oppose initiatives that: 1.Restrict the use of, or reallocate, district property tax revenues to the detriment of specialdistricts.2.Create unrealistic ergonomic protocol.3.Micromanage special district operations.4.Balance the state budget by allowing regulatory agencies to increase permitting fees. 5. Tax dependent benefits.6. Require new reporting criteria on energy intensity involved in water supply. X. Safety, Security, and Information Technology Support initiatives that: 1.Provide funding for information security upgrades to include integrated alarms, access/egress,and surveillance technology.2. Provide incentives for utilities and other local agencies to work cooperatively, share costs orresources. 3. Provide funding for communication enhancements, wireless communications, GIS, or othertechnological enhancements.4. Encourage or promote compatible software systems.5. Fund infrastructure and facility security improvements that include facility roadway access,remote gate access, and physical security upgrades. 6.Protect state, local, and regional drinking water systems from terrorist attack or deliberate actsof destruction, contamination, or degradation.7. Provide funds to support training or joint training exercises to include contingency funding foremergencies and emergency preparedness.8. Equitably allocate security funding based on need, threats, and/or population. 9.Encourage or promote compatible communication systems. Otay Water District Legislative Program 2023 18 | Page 10. Encourage and promote funding of Department of Homeland Security Risk Mitigationprograms.11.Recognizes water agencies as emergency responders in the event of a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent andmitigate loss or impairment of life, health, property, or essential public services due to naturaldisasters (e.g., wildfires, earthquakes), power outages as well as terrorist and other criminalactivities.12. Provide state grant or other funding opportunities to support seismic risk assessment and mitigation plans, or to mitigate vulnerabilities.13. Provide funding for projects that enhance security against terrorist acts or other criminalthreats to water operation, services, facilities, or supplies.14.Provide funding for projects that improve the security of the District facilities and operations.15. Provide funding to support technologies that support remote working, when necessary to prevent loss of or damage to life, health, property, or essential public services. Oppose initiatives that: 1. Create unnecessary, costly, or duplicative security or safety mandates.2.Require expanded water system descriptions or additional public disclosure of public water systems details for large water suppliers in Urban Water Management Planning documents,potentially compromising public water systems, and creating a conflict with the Departmentof Homeland Security’s recommendation to avoid reference to water system details in plansavailable to the public. XI.Water Quality Issues Support initiatives that: 1.Assure cost-effective remediation and cleanup of contaminates of concern that have impacted groundwater and surface water. 2. Incorporate sound scientific principals in adopting drinking water standards for drinking waterconcerns.3.Revise NPDES standards and procedures to facilitate inland discharge and use of recycledwater. 4.Establish appropriate quality standards, testing procedures, and treatment processes for emerging contaminants.5.Alter the definition of “lead free” to reduce the permissible amount of lead in fixtures,plumbing, and pipe fittings to be installed for the delivery of drinking water.6.Exempt purified wastewater from regulation as a discharge under the Clean Water Act. 7. Protect child public health by requiring schools to undertake lead testing in school drinking water systems.8.Implement source control for management prevention of contamination by constituents ofemerging concern.9. Provide the necessary funding for research on the occurrence, treatment, health effects, and environmental cleanup related to contamination drinking water sources. 10.Implement and fund the San Diego Regional Water Quality Control Board’s triennial reviewof water quality standards. Otay Water District Legislative Program 2023 19 | Page 11. Provide funding and support for Colorado River salinity control projects and other water quality management efforts. 12. Direct the state’s participation or assistance in water quality issues related to or threatening the Colorado River water source. 13. Streamline permitting of facilities constructed for the purpose of improving water quality. 14. Ensure consistent application of the law by the State Water Resources Control Board and the nine regional water quality control boards. Oppose initiatives that: 1. Eliminate the State Water Resources Control Board and/or the nine regional water quality control boards without ensuring the functions and expertise of the boards is maintained in any reorganized entity. 2. Regulate the conveyance, storage, or release of water supplies as discharge under the Clean Water Act and other water quality control laws. 3. Make water suppliers financially and legally responsible for mitigation of pollution contamination by third parties. 4. Make water suppliers financially and legally responsible for testing or correction of any water quality-related issues associated with private property or on-site plumbing systems. XII. Water Recycling and Potable Reuse Support initiatives that: 1. Reduce restrictions on recycled water usage or promote consistent regulation of recycled water projects to reduce impediments to the increased use of recycled water. 2. Reduce restrictions on injecting recycled water into basins where there is no direct potable use. 3. Advocate for direct potable reuse. 4. Advocate for recycled water use upstream of lakes and reservoirs if protected by urban water runoff protection systems. 5. Provide financial incentives for recharge of groundwater aquifers using recycled water. 6. Make recycled water regulations clear, consolidated, and understandable to expedite related project permitting. 7. Promote recycled water as a sustainable supplemental source of water. 8. Allow the safe use of recycled water. 9. Facilitate development of technology aimed at improving water recycling. 10. Increasing funding for water recycling projects. 11. Support continued funding of the Title XVI Water Reclamation and Reuse Program including Water Reclamation and Reuse Projects, the WaterSMART Program, and the Desalination and Water Purification Research Program. 12. Increase awareness of the ways recycled water can help address the region’s water supply challenges. 13. Create federal and state incentives to promote recycled water use and production. Otay Water District Legislative Program 2023 20 | Page 14. Establish federal tax incentives to support U.S. companies in the development of new water technologies that can lower productions costs, address by products such as concentrates, and enhance public acceptance of recycled water. 15. Establish a comprehensive national research and development, and technology demonstration, program to advance the public and scientific understanding of water recycling technologies to encourage reuse as an alternative source of water supply. 16. Provide incentives for local agencies to work cooperatively, share costs or resources to promote or expand the use of recycled water. 17. Further refine emergency regulations to reward local suppliers that have invested in using recycled water for landscape irrigation to maintain an incentive to continue expanding areas served by recycled water. 18. Encourage the use of recycled water in commercial, industrial, institutional, and residential settings. 19. Recognize and support the development of potable reuse as a critical new water supply. 20. Define purified recycled water as a source of water supply and not as waste. 21. Mandate the reduction of wastewater discharges to the ocean absent inclusion of funding to offset the significant costs of implementation. 22. Authorize local governmental agencies to regulate the discharge of contaminants to the sewer collection system that may adversely affect water recycling and reuse. 23. Authorize and facilitate expanded use of local water resources including water recycling, potable reuse, graywater, and rainwater harvesting (e.g., cisterns and rain barrels), and brackish groundwater. 24. Streamline regulatory processes and requirements to encourage and support the development of potable reuse and non-potable reuse as a municipal water supply. 25. Recognize the entire interconnected urban water cycle, as well as public health and safety, must be taken into consideration in long-term water use efficiency policies, particularly including the unintended consequences of declining flows on water, wastewater, potable reuse, and recycled water systems. 26. Encourage dual plumbing in new development where non-potable recycled water is likely to available to enable utilization of recycled water. 27. Promote uniform regulatory interpretation of state recycled water system standards. 28. Support beneficial revisions to the California Plumbing Code that facilitate recycled water systems. Oppose initiatives that: 1. Restrict use of recycled water for groundwater recharge. 2. Establish new water or recycled water fees solely to recover State costs without also providing some benefit. 3. Limit the ability of local governmental agencies to regulate the discharge of contaminants to the sewer collection system that may adversely affect water recycling and reuse. 4. Establish unreasonable regulatory requirements or fees to the safe use of recycled water, which may unreasonably impede or create a disincentive to its further development. 5. Mandate the reduction of wastewater discharges to the ocean absent inclusion of funding to offset the significant costs of implementation. 6. Water use efficiency standards (AB 1668), which do not reflect the impact that higher TDS recycled water has on the usage rates to reduce salt loading in areas of use. Otay Water District Legislative Program 2023 21 | Page XIII. Water Services and Facilities Support initiatives that: 1. Provide funding to implement actions identified in the California Water Action Plan to lay a solid fiscal foundation for implementing near-term actions, including funding for water efficiency projects, wetland and watershed restoration, groundwater programs, conservation, flood control, and integrated water management and result in a reliable supply of high-quality water for the San Diego region. 2. Promote the coordination and integration of local, state, and federal climate change policies and practices to the greatest extent feasible. 3. Fund or otherwise facilitate ongoing implementation of the Quantification Settlement Agreement. 4. Provide reliable water supplies to meet California’s short and long-term needs. 5. Promote desalination pilot studies and projects. 6. Encourage feasibility studies of water resource initiatives. 7. Increase funding for infrastructure and grant programs for construction, modernization or expansion of water, wastewater treatment, reclamation facilities and sewer systems including water recycling, groundwater recovery and recharge, surface water development projects and seawater desalination. 8. Fund enhancements to water treatment, recycling, and other facilities to meet increased regulations. 9. Mandate uniform or similar regulations and procedures by state agencies in the processing and administering of grants and programs. 10. Streamline grant application procedures. 11. Reduce regulations and other impediments for willing sellers and buyers to engage in water transfer agreements. 12. Promote or assist voluntary water transfers between willing buyers and willing sellers and move those transactions through without delay. 13. Streamline the permitting and approval process for desalination and other water-related facilities and implementing water transfers that will improve water management. 14. Establish reasonable statewide approaches to sewer reporting standards. 15. Generate greater efficiencies, better coordinate program delivery, and eliminate duplication in programs for source water protection without lessening the focus on public health of the state’s Drinking Water Program. 16. Target efforts to fix specific issues with water supplies within the state’s Drinking Water Program. 17. Establish federal tax incentives to support U.S. companies in the development of new desalination technologies that can lower productions costs, eliminate or reduce impingement or entrainment, reduce energy use, and enhance public acceptance of desalinated water. 18. Establish a comprehensive national research and development, and technology demonstration program to advance the scientific understanding of desalination to expand its use as an alternative source of water supply. 19. Require the State Water Resources Control Board to exercise its authority, ensure robust funding, and implement the Salton Sea mitigation and restoration plan, meet state obligations, Otay Water District Legislative Program 2023 22 | Page and work with QSA stakeholders to find workable solutions to ensure the continuation of IID water transfers. 20. Support solutions to water supply issues that address common challenges, provide a comprehensive approach that is fair to all users, balance the needs of urban and rural communities, and take into consideration the interests of all stakeholders as well as the impact to the environment. 21. Further refine emergency drought regulations to eliminate a cap on credits and adjustments so as not to impose undue burden, financial or otherwise, on communities that have already invested in water conservation, development of new water sources, storage, or loss prevention. 22. Provide funding for water infrastructure development, infrastructure security, and rehabilitation and replacement projects that benefit ratepayers. 23. Provide funding for habitat preservation programs that address impacts resulting from construction or operation of water system facilities. 24. Provide funding for projects that enhance security against terrorist acts or other criminal threats to water operation, services, facilities, or supplies. 25. Provide incentives that encourage contractors to recycle or reduce waste associated with construction of water facilities. 26. Improve the local agencies’ efforts to maintain and protect its property, rights of way, easements, pipelines, and related facilities and minimizes liability to local agencies and the District. 27. Protect the local agencies’ properties from restrictions when surrounding properties are incorporated into preservation areas. 28. Encourage the use of current and emerging technologies for monitoring and assessing the condition of large diameter pipelines. 29. Encourage water supplier to develop and execute asset management programs that include visual inspections, internal/external inspections, asset condition assessments, corrosion mitigation, and reis analysis in a manner that recognizes the individuality and uniqueness of each water supplier and its systems. 30. Improve the District’s efforts to maintain and protect its property, rights of way, easements, pipelines, and related facilities and minimizes liability to the District. 31. Protect the District, other agencies and the Water Authority properties from restrictions when surrounding properties are incorporated into preservation areas. 32. Provide funding to water agencies for the voluntary retrofit of facilities for on-site generation of chlorine. 33. Provide funding for water supplier asset management programs that involve the active monitoring, repair, or replacement of physical assets and infrastructure, which includes pipes, valves, facilities, equipment, and other infrastructure. 34. Provide for restrictions on price gouging during public safety power shutoff events and for at least 72 hours following restoration of power. 35. Provide that de-energization or public safety power shutoff events may be included as a condition constituting a state of emergency or local emergency. 36. Provide a tax emption for the sale of, or storage, use, or consumption of, a backup electrical resources, that is purchased for exclusive use by a city, county, special district, or other entity of local government during a de-energization or public safety power shutoff event. Otay Water District Legislative Program 2023 23 | Page 37.State that the use of alternative power sources (such as generators) by essential public servicesduring de-energization or public safety power shutoff events shall not be limited by any stateor local regulations or rules. 38. Recognize the critical role the District, local agencies, and the Water Authority play as PublicSafety Partners in Public Safety Power Shutoff events and other natural or man-madedisasters. Further recognizes the importance of the agency’s ability to provide immediate andsustained response for extended periods of time.39.Provide financial support to local projects designed to mitigate or adapt to potential negative impacts of climate change on water supply reliability.40. Investigate and provide financial support to projects designed to mitigate potential negativeimpacts of climate change on water supply reliability. Oppose initiatives that: 1.Restrict local control and discretions over water facilities, asset management, and facilityoperations.2.Make urban water supplies less reliable or substantially increase the cost of imported waterwithout also improving the reliability and/or quality of the water.3.Create unrealistic or costly water testing or reporting protocol. 4. Disproportionately apportion the cost of water.5. Create undo hurtles for seawater desalination projects.6. Create unreasonable or confusing sewer reporting standards.7.Create administrative or other barriers to sales between willing buyers and willing sellers thatdelay water transfers. 8.Create a broad-based user fee that does not support a specific local program activity orbenefit; any fee must provide a clear nexus to the benefit local ratepayers or local watersupplies from the establishment that charge or fee would provide.9.Create unrealistic or costly to obtain water quality standards for potable water, recycled water, or storm water runoff. 10. Change the focus of the state’s Drinking Water Program or weaken the parts of the programthat work well.11. Lessen the focus on public health of the state’s Drinking Water Program.12. Impose undue burden, financial or otherwise, on communities that have already invested in water conservation, development of new water sources, storage, or loss prevention. 13. Impose additional mitigation costs or obligations for the Salton Sea on the non-state parties tothe Quantification Settlement Agreement.14.Impair the District and other local water agencies’ ability to provide and operate the necessaryfacilities for a safe, reliable, and operational flexible water system. 15.Limit local agencies’ sole jurisdiction over planning, design, routing, approval, construction, operation, or maintenance of water facilities.16.Restrict local agencies’ ability to respond swiftly and decisively to an emergency thatthreatens to disrupt water deliveries or restricts the draining of pipelines or other facilities inemergencies for repairs or preventive maintenance. 17.Authorize state and federal wildlife agencies to control, prevent, or eradicate invasive species in a way that excessively interferes with the operations of water supplies.18.Prohibit or in any way limit the ability of local agencies from making full beneficial use ofany water, wastewater, or recycling facility and resource investments. Otay Water District Legislative Program 2023 24 | Page 19. Prohibit the use of alternative contract procurement methods that can be utilized in the construction of water facilities. 20. Shift the risks of indemnity for damages and defense of claims from contractors to the District. 21. Impair local agencies’ efforts to acquire property or property interests required for essential capital improvement projects or acquisition of property to meet pipeline water drain-down needs for existing facilities. 22. Increase the cost of property and right of way acquisition. 23. Restrict the District’s use of public rights of way or increase the cost of using public rights of way. 24. Restrict the transfer of property acquired for purposes of environmental mitigation or environmental mitigation credits to other public or private entities for long-term management. 25. Establish prescriptive leak loss control requirements for the operation, maintenance, and asset management of water conveyance and distribution systems, that fail to consider full life-cycle costing. 26. Establish meter testing requirements for source water meters that fail to consider industry standards and cost-effectiveness. 27. Limit the discretion of the District from protecting security and privacy of comprehensive inventories of all assets, which includes infrastructure location, condition, performance, and useful life. 28. Impair local agencies’ ability to execute the planning, design, and construction of projects using its own employees. 29. Limit the autonomy of discretion of water supplier to develop and execute asset management inspection programs that include visual inspections, internal/external inspections, asset condition assessments, and corrosion mitigation in a manner that recognizes the individuality and uniqueness of each water supplier and its systems. 30. Authorize air quality management districts or other regulatory bodies to adopt or maintain rules that would limit or prohibit a local government entity’s use of a state and/or federally complaint natural gas-powered generator during a de-energization or public safety power shutoff event. 31. Would inhibit the District from fulfilling its critical role as a Public Safety Partner and making immediate and sustained response in a Public Safety Power Shutoff event or and other natural or man-made disasters, such as the CARB Advanced Clean Fleet regulation. 32. Would inhibit the District from fulfilling its critical role as an essential service provider from procuring and operating fleets which meet the needs to perform routine and emergency maintenance of water and wastewater systems, such as the CARB Advanced Clean Fleet regulation. 33. Require incorporation of climate change considerations into regional and local water management planning that does not provide flexibility to the local and regional water agencies in determining the climate change impact and identification of adaptation and mitigation measures. 34. Impose top-down “one-size-fits-all” climate change mandates that fail to account for hydrological, meteorological, economic, and social variation across the state and/or that fail to incorporate local and regional planning and implementation priorities and protocols. Otay Water District Legislative Program 2023 25 | Page XIV. Water-Use Efficiency Support initiatives that: 1. Provide funding for incentives for water-use efficiency and water conservation programsincluding water-efficient devices, practices and demonstration projects and studies.2. Encourage the installation of water-efficient fixtures in new and existing buildings.3.Promote the environmental benefits of water-use efficiency and water conservation. 4. Enhance efforts to promote water-use efficiency awareness. 5.Offer incentives for landscape water-efficient devices including, but not limited to ETcontrollers and soil moisture sensors.6.Develop landscape retrofit incentive programs and/or irrigation retrofit incentive programs.7.Permit or require local agencies to adopt ordinances that require or promote water-efficient landscapes for commercial and residential developments. 8.Create tax incentives for citizens or developers who install water-efficient landscapes.9.Create tax incentives for citizens who purchase high-efficiency clothes washers, dual-flushand high-efficiency toilets, and irrigation controllers above the state standards.10. Expand community-based water-use efficiency and education programs. 11.Facilitate and encourage the use of rainwater-capture systems, i.e., rain barrels, cisterns, etc. and alternative water sources, i.e., air conditioner condensate for use in irrigation.12.Develop incentives for developers and existing customers to install water-efficient landscapein existing developments or new construction.13.Encourage large state users to save water by implementing water-efficient technologies in all facilities both new and retrofit. 14.Encourage large state water users to save water outdoors.15. Educate all Californians on the importance of water, and the need to conserve, manage, andplan for the future needs.16.Encourage technological research targeted to more efficient water use. 17.Give local agencies maximum discretion in selecting water-use efficiency and conservation programs that work for their customers and the communities they serve.18.Require the Department of Water Resources to implement a uniform statewide turf rebatesubsidy or incentive program.19.Restrict Property Owner Associations from forbidding the use of California native plants, other low water use plants, mulch, artificial turf, or semi-permeable materials in well- maintained landscapes.20.Restrict Property Owner Associations from forbidding retrofits of multiple unit facilities forthe purpose of submetering, if feasible.21.Ensure plumbing codes and standards that facilitate the installation and/or retrofit of water efficient devices. 22.Establish standards for the utilization of high-efficiency commercial coin-operated andresidential clothes washers.23.Provides for federal tax-exempt status for water-use efficiency rebates, consistent withincome tax treatment at the state level. 24. Encourage the use of graywater where it complies with local guidelines and regulations and is cost-effective.25. Provide incentives, funding, and assistance to water agencies so that they can meet the waterdemand management measure requirements in the Urban Water Management Planning Act. Otay Water District Legislative Program 2023 26 | Page 26. Provide incentives, funding, and other assistance to facilitate water-use efficiency partnerships with the energy efficiency sector. 27. Provide incentives, funding, and other assistance where needed to facilitate market transformation and gain wider implementation of water efficient indoor and outdoor technologies and practices. 28. Recognize local control in determining water use efficiency criteria, such as impact of recycled water salinity on irrigation use and efficiency for the application of non-potable recycled water. 29. Encourage reasonable tracking of water use and improved efficiency in the Commercial, Industrial, and Institutional (CII) sector. 30. Recognize local control in determining how to meet an overall efficient water use goal, based on the combined efficient indoor use, outdoor use, and leak loss, as established under the criteria provided for in statute. 31. Further the statewide goal of a 20 percent reduction in per capita water use by 2020 as set forth in SBX7-7, enacted in November 2009, and preserves water agency discretion and options for achieving this objective. 32. Ensure accurate and meaningful reporting of implementation of water-use efficiency and conservation measures. 33. Promote statewide implementation of water-use efficiency best management practices and demand management measures as defined in the Urban Water Management Planning Act. Oppose efforts that: 1. Weaken federal or state water-efficiency standards. 2. Introduce additional analytical and reporting requirements that are time-consuming for local agencies to perform and result in additional costs to consumers yet yield no water savings. 3. Permit Property Owners Associations to restrict low water use plants, mulch, artificial turf, or semi-permeable materials in landscaping. 4. Repeal cost-effective efficiency standards for water-using devices. 5. Repeal cost-effective efficiency standards for water-using devices. 6. Create stranded assets by establishing long-term demand management water-use efficiency and water supply requirements that are inconsistent with the Urban Water Management Planning Act. 7. Prescribe statewide mandatory urban and agricultural water-use efficiency practices, including, but not limited to, methods, measures, programs, budget allocation, and designation of staff dedicated to water conservation programs, that override the authority of the boards of directors of local water agencies to adopt management practices that are most appropriate for the specific needs of their water agencies. 8. Mandate regulation of the CII Sector in a manner that is discriminatory, or sets unachievable Best Management Practices or compliance targets, or would otherwise impair economic activity or the viability of the CII sector. 9. Mandate that water agencies include an embedded energy calculation for their water supply sources in the Urban Water Management Plan or any other water resource planning or master planning document. Otay Water District Legislative Program 2023 27 | Page XV.Workforce Development Support initiatives that: 1. Advocate for local, regional, and state programs that support a high-performing workforce and increase the talent pool for water agencies. 2. Advocate for military veterans in the water industry workforce to ensure that veterans receive appropriate and satisfactory credit towards water and wastewater treatment system certifications in California for work experience, education, and knowledge gained in military service. 3.Lower employment barriers for military veterans and transitioning military and that sustain vital water and wastewater services for the next generation. 4. Recruit and support veterans and transitioning military through internships, cooperative work experiences, and other resources. 5.Recruit and support underserved communities in the water industry through internships, cooperative work experiences, and other resources. 6. Advocate and encourage candidate outreach and recruitment in relation to mission-critical job categories in water and wastewater. 7.Ensure advanced water treatment operators and distribution system operators of potable reuse and recycled water facilities have a career advancement path as certified water and/or wastewater treatment plant operators. 8.Increase the number of educational institutions that provide water-industry related training and related program criteria including but not limited to trades, certifications, and degrees. 9.Increase the talent pool of future water industry workers through educational programs, internships, and other resources. 10. Provide funding to educational institutions, water agencies, and workforce students regarding careers in the water industry. 11. Develop qualified candidates for positions in the water industry. 12.Build awareness of water industry-related jobs through student outreach including but not limited to K-12, community colleges, universities, and other educational institutions as well as outreach to the public. Oppose initiatives that: 1. Hinder military veterans from using previous experience, education, and knowledge toward a career in water.2.Regulate agencies from hiring an experienced, educated, and talented water-industryworkforce. Otay Water District Anticipated Top 10 Legislative Priorities for 2023 Presented by: Ruy Laredo Policy Advisor Baltazar Cornejo Policy Advisor March 16, 2023 Attachment D Top 10 Legislative Priorities 2023 2 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | Legislative Update •Legislature reconvened on January 4, 2022. —Over 30 new members in both the Assembly and Senate due to term limits expiring and other resignations. •In 2023, as of March 7, 2774 bills, resolutions and constitutional amendments have been introduced. —This is the third highest amount of bills introduced in the last 17 years. •Key Legislative Deadlines: —January 10 –Governor’s Budget Proposal —February 17 –Bill Introduction deadline —May 15 –May Revision of the January Budget (“May Revise”) —June 2 –Last day for each house pass bills introduced in that house. (“House of Origin Deadline”). —June 15 –Budget must be passed by midnight —September 14 –Deadline to pass bills out of Legislature. (“Final Recess upon Adjournment of Session”) —October 14 –Last day for Governor to sign or veto bills passed on or before September 1 •No lobby days for foreseeable future. 3 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 1. Drought Response and Extreme Weather •California experienced significant rainfall and flooding during the series of atmospheric rivers that hit the state in late December thru mid-January. —Winter storms temporarily alleviate water shortages, but these large precipitation events do not signal the end of the drought. —2020-2022 was the driest three-year period on record, and despite recent storms, we remain in a statewide drought emergency. •State Water Board regulations prohibiting wasteful water use practices statewide remain in effect through December 2023 stemming from Governor Newsom’s 2021 Emergency Drought Proclamation. —Effective since January 2022 and were readopted by the State Water Board in December 2022 —Will remain in effect for 1 year from effective state, unless ended, modified or readopted •Governor Newsom announced California’s Water Supply Strategy in August 2022. —Water Supply Strategy created due to hotter and drier weather conditions (spurred by climate change) potentially reducing California’s water supply by up to 10% by the year 2040. —To help make up for the water supplies California could lose over the next two decades, the strategy prioritizes actions to capture, recycle, de-salt and conserve more water. •Create storage space for up to 4 million acre-feet of water. •Recycle and reuse at least 800,000 acre-feet of water per year by 2030. •Free up 500,000 acre-feet of water for new purposes each year. •Make new water available for use by capturing stormwater and desalinating ocean water and salty water in groundwater basins. 4 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 2.Water Rights Modernization •Due to the ongoing drought and greater federal level discussions on the Colorado River water rights, water rights is poised to rise to the top of the Legislature’s agenda. —Several bills have been introduced this year that collectively present a fundamental change in California’s water rights system and a coordinated effort is underway to see that this year ends with a foundational change to how the water rights system is implemented and enforced. —AB 1337 (Wicks) gives the State Water Board authority to adopt sweeping curtailment regulations for water conservation purposes to prevent the waste, unreasonable use, or unreasonable method of diversion of water. —AB 460 (Bauer-Kahan)would authorize the State Water Board to issue an interim relief order on water rights. —Other spot bills on water rights have been introduced with no indication on what they will do. •ACWA may sponsor its own water rights legislation as an alternative to avoid more drastic legislation. —This proposal includes a comprehensive set of ideas that would substantively improve water rights administration and enforcement during critical dry years and improve permitting for groundwater recharge, all while respecting local decision making. 5 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 3. Advanced Clean Fleets Rulemaking •Executive Order N-79-20 accelerates the state’s transition to carbon neutrality by setting a course to end sales of internal combustion passenger vehicles by 2035. •The 2021 and 2022 Budget Acts committed $10 billion over 5 years in investments to the state’s ZEV agenda—from cleaning up drayage trucks and school buses to accelerating equitable electrification of passenger vehicles—coupled with infrastructure and incentives for in-state manufacturing. •CARB is tasked with transitioning fleets to zero-emission vehicles (ZEVs) to meet the state’s goals. •The Advanced Clean Fleets proposed rulemaking for Public Fleets would require. —100 percent zero-emission drayage trucks by 2035. —100 percent zero-emission off-road vehicles and equipment by 2035, where feasible. —100 percent zero-emission medium and heavy-duty vehicles by 2045, where feasible. •Otay Water District submitted comments to CARB and met with CARB staff, seeking an exemption for emergency response vehicles. •CARB will adopt rule on April 27th workshop after 15 days of public comment. •AB 1594 (E. Garcia) –Was introduced as back up legislation on clean fleets regulations if water agencies don’t get what they’re seeking in regulations •The Governor’s Budget Proposal maintains $8.9 billion (89%) of ZEV investments. —The Budget includes $2.5 billion of General Fund reductions across various ZEV programs, which are partially offset by approximately $1.4 billion in fund shifts to Cap and Trade funds. 6 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 4.Water Quality •MCL Compliance Periods –State Water Board/ACWA determined that legislation was not needed to establish compliance periods for MCLs; State Water Board to use its existing authority. —The SWRCB will consider a resolution for the adoption of drinking water regulations development this calendar year on March 7-8 workshop. •The Division of Drinking Water has established a proposed prioritized list for regulatory development projects for 2023. •DDW staff use multiple factors in prioritizing drinking water regulations, including the protection of public health, establishment of a new or revised federal regulation or rule, existence of statutory mandates, as well as the existence of other priorities and staffing resources available for the development and implementation of regulations. •This includes MCLs for: •Chromium (hexavalent), Arsenic, Perfluoro-octanoic acid (PFOA) and perfluoro-octane sulfonic acid (PFOS), N-nitrosodimethylamine (NDMA), Disinfection Byproducts, Styrene, Cadmium, and Mercury. •Lead Testing in Schools –Assemblymember Chris Holden has introduced AB 249, which would lower the standards for lead levels at TK-12 school buildings built after 2010. —Lowers standard from 15 parts per billion (ppb) to 5ppb. —Community water systems would have to test water faucets once over the next five years. —There are current changes pending to the federal Lead and Copper Rule through October 16, 2024, which could result in conflicting or duplicative requirements if this legislation is passed. 7 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 5. Affordability •During the 2021-2022 legislative session, Senator Bill Dodd (D-Napa) introduced SB 222: Water Rate Assistance Program. —This legislation sought to establish the Water Rate Assistance Fund in the State Treasury to help provide water affordability assistance, for both drinking water and wastewater services, to low- income ratepayers and ratepayers experiencing economic hardship in California. —Otay adopted an “Oppose Unless Amended” position and joined the Association of California Water Agencies’ (ACWA) coalition. —The bill was vetoed by the Governor on September 28th due to lack of an ongoing funding source. —Following the veto, Senator Dodd, ACWA, and affordable water advocates said they would continue to work closely this year with the Governor’s office and the state water board to find funding for a long-term water assistance program. •Low Income Household Water Assistance Program (LIHWAP) —In 2020, the federal government funded LIHWAP to provide financial assistance to low-income Californians with residential water utility costs and debt repayment. —California has been allocated $116 million in one-time funding to provide LIHWAP assistance. —Administering Agency –Department of Community Services and Development (CSD). •In response to low LIHWAP participation and grant expenditure, CSD expanded eligibility to include current bills to maximize grant expenditures through August 2023, the end of the federal grant period. —LIHWAP benefit payments began to be issued to households in June 2022 and all funds must be expended by August 2023. 8 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 6. Water Use and Efficiency •November 2021 –DWR and the State Water Board submitted its final report to the Legislature recommending an indoor water use efficiency standard of 55 GPCD by 2023, declining to 47 GCPD by 2025, and 42 GCPD by 2030 and beyond. •January 2022 –AB 1434 (Friedman) was amended to mirror the recommendations in this report. However, the bill failed to move forward. •In 2022, then-Senator Robert Hertzberg introduced SB 1157 (Hertzberg), which also mirrors the recommendations in the report and the language that was in AB 1434 (Friedman). —Otay initially joined ACWA’s “Oppose Unless Amended” coalition on SB 1157 but moved its position to neutral following language adding a quantitative study, adding flexibility to the timeline to achieve the standards, and adopting additional variances. —SB 1157 was signed by the Governor on September 28. •Assemblymember Friedman has now introduced AB 1572 to prohibit the use of potable water for irrigation of nonfunctional turf on specified properties. —Nonfunctional turf” would be defined as “any turf that is not located in areas designated by a property owner or a government agency for recreational use or public assembly. —Urban water retail suppliers would be required to adopt these same nonfunctional turf bans within their terms and conditions of water service by January 1, 2026. —A reduction in irrigation due to removal of turf may not have a large impact on urban water suppliers’ ability to meet their overall objective, but the proposed ban on the irrigation of nonfunctional turf on multifamily properties envisioned under AB 1572 may result in some water savings toward that overall objective for urban water suppliers. 9 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 7. Proposed Bonds (Recycled Water, Climate Resiliency, Flood Protection) SB 867 (Allen): Drought and Water Resilience, Wildfire and Forest Resilience, Coastal Resilience, Extreme Heat Mitigation, Biodiversity and Nature-Based Climate Solutions, Climate Smart Agriculture, and Park Creation and Outdoor Access Bond Act of 2023. •Would authorize the issuance of bonds in an unspecified amount pursuant to the State General Obligation Bond Law to finance projects for drought and water resilience, wildfire and forest resilience, coastal resilience, extreme heat mitigation, biodiversity and nature- based climate solutions, climate smart agriculture, and park creation and outdoor access programs. AB 1567 (E. Garcia): Safe Drinking Water, Wildfire Prevention, Drought Preparation, Flood Protection, Extreme Heat Mitigation, and Workforce Development Bond Act of 2023. Would authorize the issuance of bonds in the amount of $15,105,000,000 pursuant to the State General Obligation Bond Law to finance projects for safe drinking water, wildfire prevention, drought preparation, flood protection, extreme heat mitigation, and workforce development programs. SB 638 (Eggman):Climate Resiliency and Flood Protection Bond Act of 2024 . Would authorize the issuance of bonds in the amount of $4,500,000,000, pursuant to the State General Obligation Bond Law, for flood protection and climate resiliency projects. 10 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 8. State Budget/Infrastructure Funding •The Governor’s 2023-24 proposed budget unveiled on January 10th included a projected budget deficit of $22.5 billion, which has since worsened by $7 billion according toa February report from the Legislative Analyst Office. To address this budget deficit, the Governor has proposed a combination of new funding, reductions and delays of previous budget commitments. •New Funding: —Water Urban Flood Risk Reduction —$135.5 million over two years to support local agencies working to reduce urban flood risk. —Delta Levee —$40.6 million for ongoing Delta projects that reduce risk of levee failure and flooding, provide habitat benefits, and reduce the risk of saltwater intrusion contaminating water supplies. —Central Valley Flood Protection —$25 million to support projects that will reduce the risk of flooding for Central Valley communities while contributing to ecosystem restoration and agricultural sustainability. —2023 Drought Contingency —$125 million one-time as a drought contingency set-aside to be allocated as part of the spring budget process, when additional water data will be available to inform future drought needs. —Modernizing Water Rights —$31.5 million one-time in 2023-’24 to continue development of the Updating Water Rights Data for California Project to enhance California’s water management capabilities. —Urban Water Use Objectives —$7 million over four years to implement legislation signed into law last year which established a new framework for water conservation and drought planning. 11 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | •Budget Reductions of Concern for ACWA: —Watershed Resilience Programs —A reduction of $24 million in 2023-’24 and a delay of an additional $270 million to 2024-’25. —PFAS Cleanup —A reduction from $100 million to $30 million for PFAS cleanup and a delay of that funding from 2023-’24 to 2024-’25. —Water Recycling/Groundwater Cleanup —A reduction from $210 million to $170 million in 2023-’24 to support water recycling and groundwater clean-up. 12 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 9. Recycled Water •AB 1152 (Patterson): California Environmental Quality Act (CEQA): exemption: recycled water. —Provides a CEQA exemption for the construction or expansion of recycled water pipelines built to mitigate drought conditions if the project meets certain criteria. —Lead agencies would be required to determine if a project qualified for the exemption under a state- mandated local program. —Also exempts development and approval of building standards by state agencies for recycled water systems. —Bill currently awaiting a hearing in Assembly Natural Resources. 13 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 10.State Water Project/Delta Conveyance •State Water Project —State water officials in late January 2023 had announced a major boost, from 5% of requested water supply to 30%. February saw another update, with the SWP allocation increased to 35%, reflecting nine atmospheric river storms from late December through late January. —State Water Project allotments are set each year on Dec. 1, then updated monthly through May or June. •Delta Conveyance Project —2022 marked the release and public review of the Draft Environmental Impact Report (EIR), evaluating the proposed Delta Conveyance Project under the California Environmental Quality Act. —Building on that progress, DWR states that it will continue to advance environmental planning and permitting activities, as well as public outreach and engagement, in 2023, including but not limited to CEQA, NEPA, CESA Incidental Take Permits, ESA Biological Opinions, etc. —DWR has released an Adapting to Climate Change fact sheet after the January winter storms, detailing that if the DCP had been operational, it would have moved 202,000-acre feet of water into the San Luis Reservoir, enough supply for 2.1 million people for one year or 710,000 households. This is about 35% of the total volume exported by the SWP in water year 2022. 14 Questions? CONTACT Ruy Laredo rlaredo@bhfs.com (916) 594-9709 Baltazar Cornejo bcornejo@bhfs.com (916) 594-9705 Anticipated Top 10 Legislative Priorities for 2023 1.Drought Response and Extreme Weather – In 2021, as drought conditions and record-breaking temperatures persisted throughout the state, Governor Newsom signed ExecutiveOrder N-10-21, which calls on Californians to voluntarily reduce water use by 15%compared to 2020 levels. Even though the state has experienced significant rainfall andflooding as a result of the atmospheric rivers that hit California in late December and January, the Governor’s executive order remains in effect. While the winter stormstemporarily alleviated water shortages, the Department of Water Resources noted that theselarge precipitation events do not signal the end of the drought, as 2020-2022 was the driestthree-year period on record, and more precipitation will be needed to pull the state out of thedrought. Following the Governor’s executive order, the State Water Board implemented regulations inJanuary 2022 that prohibited wasteful water use practices statewide. These regulations werereadopted in December 2022 and will remain in effect through December 2023 unless theyare ended, modified, or readopted. Drought response remains a top concern for the Newsom administration. In August 2022, theGovernor announced a new Water Supply Strategy for California to help make up for thewater supplies the state might lose over the next two decades. Due to climate change, hotterand drier weather conditions could potentially reduce California’s water supply by up to 10% by 2040. The water supply strategy prioritizes actions to capture, recycle, de-salt, andconserve more water. More information on the Governor’s strategy will be released at a laterdate. Drought response and extreme weather will remain a priority in 2023, and we will continue to monitor the progress of the state’s response and impacts on Otay Water District. 2.Water Rights Modernization – Due to the ongoing drought and the federal negotiations onthe Colorado River, water rights have risen to the top of the Legislature’s agenda this year. Several bills have been introduced this year that collectively present a fundamental change in California’s water rights system. These bills would hand the State Water Board nearlyunfettered authority to adopt sweeping curtailment regulations, issue interim relief orderswithout due process, and drag diverters before the State Water Board to defend their rights.Other spot bills related to water rights have also been introduced with no indication of what they will do. ACWA has spent months preparing for a water rights debate and may sponsor its own waterrights legislation as an alternative to avoid more drastic legislation. This proposal includes acomprehensive set of ideas that would substantively improve water rights administration and enforcement during critical dry years and improve permitting for groundwater recharge, all while respecting local decision-making. Attachment E 2 If Otay desires, BHFS will work with ACWA to ensure the Legislature takes a measured approach to water rights modernization. ACWA is already working with legislators who have signaled they will be taking on this issue. 3. Advanced Clean Fleets Rulemaking – In accordance with Executive Order N-79-20, which recognizes the need for the state to transition to carbon neutrality by setting a course to end sales of internal combustion passenger vehicles by 2035, the California Air Resources Board (CARB) is faced with the task of transitioning high priority private fleets and public fleets to zero-emission vehicles to meet the state’s goals set forth by the order, as outlined in the Advanced Clean Fleets Proposed Rulemaking. Otay Water District is seeking an exemption for emergency response vehicles under the Advanced Clean Fleets (ACF) Proposed Rulemaking for public fleets in order to ensure that the District’s first responders in the field responding to water and wastewater utility emergencies in specialized vehicles have the resources available to them to ensure that response is not delayed. Two letters were submitted by Otay to CARB during the public comment period last year. CARB will likely release its final draft rule this month with a 15-day public comment period. Following this period, CARB plans to adopt its final ACF rule during its April 27th workshop. In the event that water agencies do not get what they are seeking with these final regulations, there is legislation on standby to modify the ACF rules. Assemblymember Eduardo Garcia introduced AB 1594 as a spot bill to adjust the ACF rules. We will continue to monitor this issue as the ACF ruling is finalized. 4. Water Quality – For the past several years, ACWA has been working diligently on sponsored legislation to establish compliance periods for new Maximum Contaminant Levels (MCL) set by the State Water Board, with the goal of providing water providers a reasonable amount of time to comply with drinking water standards. It has been determined by State Water Board staff that legislation is not needed and that the State Water Board has the authority in statute to establish compliance periods for new MCLs. The State Water Board will consider a resolution for the adoption of drinking water regulations development during their March 7-8 workshop. The Division of Drinking Water (DDW) has established a proposed prioritized list for regulatory development projects for 2023. DDW staff use multiple factors in prioritizing drinking water regulations, including the protection of public health, establishment of a new or revised federal regulation or rule, existence of statutory mandates, as well as the existence of other priorities and staffing resources available for the development and implementation of regulations. This includes MCLs for the following: chromium (hexavalent), arsenic, perfluoro-octanoic acid (PFOA) and perfluoro-octane sulfonic acid (PFOS), n-nitrosodimethylamine (NDMA), disinfection byproducts, styrene, cadmium, and mercury. Lastly, legislation has been introduced by Assemblymember Chris Holden to lower lead-level standards in TK-12 school buildings. AB 249 would lower the current lead standard 3 from 15 parts per billion (ppb) to 5 ppb. Community water systems would be required to test their water faucets over the next five years to ensure compliance. ACWA is ready to oppose this bill, as there are current changes pending to the federal Lead and Copper Rule through October 16, 2024, which could result in conflicting or duplicative requirements if this legislation is passed. Otay has also indicated they will likely oppose this legislation. We will continue to monitor AB 249 as it works its way through the legislative process and other water quality issues as they arise in 2023. 5. Affordability – Water affordability became one of ACWA and Otay’s top issues during the 2021-2022 legislative session. In 2021, Senator Bill Dodd (D-Napa) introduced SB 222: Water Rate Assistance Program. This legislation sought to establish the Water Rate Assistance Fund in the State Treasury to help provide water affordability assistance, for both drinking water and wastewater services, to low-income ratepayers and ratepayers experiencing economic hardship in California. While the bill failed to advance in 2021, it was revived the next year due to affordability concerns stemming from the COVID-19 pandemic. Both ACWA and Otay adopted an “Oppose Unless Amended” position on the legislation due to the program's administration being pushed to water agencies. Additionally, the program lacked an ongoing funding source. While ACWA and Senator Dodd’s office engaged in good faith negotiations, an agreement could not be reached, and the bill was passed by the Legislature without a funding source. The bill was eventually vetoed by the Governor because of funding concerns. Following the veto, Senator Dodd, ACWA, and affordable water advocates said they would continue to work closely this year with the Governor’s office and the state water board to find funding for a long-term water assistance program. In the event a new bill is introduced, we will notify Otay immediately. Lastly, in 2020, the federal government funded LIHWAP to provide financial assistance to low-income Californians with residential water utility costs and debt repayment. California has been allocated $116 million in one-time funding to provide LIHWAP assistance. The Department of Community Services and Development (CSD) was designated as the administering agency for LIHWAP in California. In response to low LIHWAP participation and grant expenditure, CSD expanded eligibility to include current bills to maximize grant expenditures through August 2023, the end of the federal grant period. Funds for this program must be used as part of an overall emergency effort to prevent, prepare for, and respond to COVID-19, with the public health focus of ensuring that low- income households have access to safe and clean drinking water and wastewater services or to reduce arrearages and rates charged to households. The benefits of the program are paid directly to the owners and operators of public water systems. All funds in this program must be expended by August 2023. 6. Water Use and Efficiency – As you may recall, in November 2021, as required by AB 1668 and SB 606, DWR and the State Water Board submitted a report to the Legislature recommending that urban water suppliers achieve an indoor water use efficiency standard of 4 55 gallons per capita per day by 2023, declining to 47 gallons per day by 2025, and 42 gallons by 2030 and beyond. The Legislature introduced two bills in 2022 to mirror the recommendations in the report, AB 1434 (Friedman) and SB 1157 (Hertzberg). AB 1434 failed to move forward, while SB 1157 was signed by the Governor last September. All urban retail water suppliers are required, beginning January 1, 2024, and January 1 of each year thereafter, to calculate their own water use objective and submit a report to DWR that reports the urban water use objective and actual water use. While Otay initially joined ACWA’s “Oppose Unless Amended” coalition on SB 1157, it moved its position to “Neutral” following amendments adding a quantitative study, adding flexibility to the timeline to achieve the standards, and adopting additional variances. The Department of Water Resources will be conducting studies to quantify the benefits and impacts of these standards that will be due to the Legislature by October 1, 2028. Assemblymember Friedman has now introduced AB 1572 to prohibit the use of potable water for irrigation of nonfunctional turf on specified properties, which could potentially affect water use objectives. Urban water retail suppliers would be required to adopt these same nonfunctional turf bans within their terms and conditions of water service by January 1, 2026. A reduction in irrigation due to the removal of turf may not have a large impact on urban water suppliers’ ability to meet their overall objective, but the proposed ban on the irrigation of nonfunctional turf on multifamily properties envisioned under AB 1572 may result in some water savings toward that overall objective for urban water suppliers. We will continue to monitor AB 1572 and related legislation, as well as ongoing discussions related to the adoption of the new standards. 7. Proposed Bonds – With significant budget cuts expected this year, several bills have been introduced in the Legislature to enact bonds for recycled water, climate resiliency, and flood protection funding. • SB 867 (Allen): Drought and Water Resilience, Wildfire and Forest Resilience, Coastal Resilience, Extreme Heat Mitigation, Biodiversity and Nature-Based Climate Solutions, Climate Smart Agriculture, and Park Creation and Outdoor Access Bond Act of 2023 – Would authorize the issuance of bonds in an unspecified amount pursuant to the State General Obligation Bond Law to finance projects for drought and water resilience, wildfire and forest resilience, coastal resilience, extreme heat mitigation, biodiversity and nature-based climate solutions, climate-smart agriculture, and park creation and outdoor access programs. • AB 1567 (E. Garcia): Safe Drinking Water, Wildfire Prevention, Drought Preparation, Flood Protection, Extreme Heat Mitigation, and Workforce Development Bond Act of 2023 – Would authorize the issuance of bonds in the amount of $15,105,000,000 pursuant to the State General Obligation Bond Law to finance projects for safe drinking water, wildfire prevention, drought preparation, flood protection, extreme heat mitigation, and workforce development programs. 5 • SB 638 (Eggman): Climate Resiliency and Flood Protection Bond Act of 2024 – Would authorize the issuance of bonds in the amount of $4,500,000,000, pursuant to the State General Obligation Bond Law, for flood protection and climate resiliency projects. If approved by the Legislature, these bonds would be put on the ballot to be voted on in the next election. We will continue to monitor the progress and feasibility of these bonds as they go through the legislative process. 8. State Budget/Infrastructure Funding – The Governor’s 2023-24 proposed budget unveiled on January 10th included a projected budget deficit of $22.5 billion, which has since worsened by $7 billion, according to a February report from the Legislative Analyst Office. To address this budget deficit, the Governor has proposed a combination of new funding, reductions, and delays of previous budget commitments. Specifically, this budget proposes allocations in the following areas: • Water Urban Flood Risk Reduction — $135.5 million over two years to support local agencies working to reduce urban flood risk. • Delta Levee — $40.6 million for ongoing Delta projects that reduce the risk of levee failure and flooding, provide habitat benefits, and reduce the risk of saltwater intrusion contaminating water supplies. • Central Valley Flood Protection — $25 million to support projects that will reduce the risk of flooding for Central Valley communities while contributing to ecosystem restoration and agricultural sustainability. • 2023 Drought Contingency — $125 million one-time as a drought contingency set aside to be allocated as part of the spring budget process, when additional water data will be available to inform future drought needs. • Modernizing Water Rights — $31.5 million one-time in 2023-’24 to continue development of the Updating Water Rights Data for California Project to enhance California’s water management capabilities. • Urban Water Use Objectives — $7 million over four years to implement legislation signed into law last year which established a new framework for water conservation and drought planning. With a tough budget year ahead, significant investments are not expected, and there are a few budget reductions of concern, including: • Watershed Resilience Programs — A reduction of $24 million in 2023-24 and a delay of an additional $270 million to 2024-25. 6 • PFAS Clean-up — A reduction from $100 million to $30 million for PFAS clean-up and a delay of that funding from 2023-24 to 2024-25. • Water Recycling/Groundwater Clean-up — A reduction from $210 million to $170 million in 2023-24 to support water recycling and groundwater clean-up We will continue to monitor the progress of budget discussions and advocacy efforts as we enter the budget subcommittee process and approach the May Revision. Additionally, we will monitor the progress and feasibility of the proposed bond measure, AB 2387 (E. Garcia). 9. Recycled Water – The Otay Water District is committed to increasing the use of recycled water in its service area and partnering with other water agencies to minimize the overall demand for potable water. Currently, there is a bill BHFS is tracking on recycled water that is currently making it way through the legislative process. AB 1152 (Patterson) addresses the California Environmental Quality Act (CEQA) in regards to recycled water projects. The legislation would exempt a project to construct or expand a recycled water pipeline for the purpose of mitigating drought conditions if the project meets specific criteria. AB 1152 would also exempt the development and approval of building standards by state agencies for recycled water systems. It is important to note that CEQA exemptions are difficult to pass in the legislature, but BHFS will watch this bill for future developments. We will continue to advocate for more funding and monitor any issues related to recycled water. 10. State Water Project (SWP)/Delta Conveyance – As you know, each year, DWR makes an initial SWP allocation on December 1. Allocations are updated as snowpack and runoff information are assessed, with a final allocation typically determined in May or June. Following the series of heavy atmospheric rivers that hit the state in December and January, DWR announced two increases in SWP allocation: a major boost in January from 5% of requested water supply to 30% and again in February from 30% to 35%. We will continue to monitor issues pertaining to the SWP in 2023 as conditions evolve. On the proposed Delta Conveyance project, 2022 marked the release and public review of the Draft Environmental Impact Report (EIR) evaluating the proposed Delta Conveyance Project under the California Environmental Quality Act. Building on that progress, DWR states that it will continue to advance environmental planning and permitting activities, as well as public outreach and engagement, in 2023, including but not limited to CEQA, NEPA, CESA Incidental Take Permits, ESA Biological Opinions, etc. DWR has released an Adapting to Climate Change fact sheet after the January winter storms, detailing that if the DCP had been operational, it would have moved 202,000-acre feet of water into the San Luis Reservoir, enough supply for 2.1 million people for one year or 710,000 households. This is about 35% of the total volume exported by the SWP in water year 2022. 7 We will continue to monitor the progress of the Delta Conveyance project for related updates of interest. STAFF REPORT TYPE MEETING: Regular Board Meeting MEETING DATE: April 5, 2023 SUBMITTED BY: Tita Ramos-Krogman, District Secretary W.O./G.F. NO: DIV. NO. APPROVED BY: Tita Ramos-Krogman, District Secretary Jose Martinez, General Manager SUBJECT: Board of Directors 2023 Calendar of Meetings GENERAL MANAGER’S RECOMMENDATION: At the request of the Board, the attached Board of Director’s meeting calendar 2023 is being presented for discussion. PURPOSE: This staff report is being presented to provide the Board the opportunity to review the 2023 Board of Director’s meeting calendar and amend the schedules 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 Board meeting calendar schedule and amend it as needed. STRATEGIC GOAL: N/A FISCAL IMPACT: None. LEGAL IMPACT: None. Attachment: Calendar of Meeting for 2023 G:\UserData\DistSec\WINWORD\STAFRPTS\Board Meeting Calendar 04-05-23.doc AGENDA ITEM 8c Board of Directors, Workshops and Committee Meetings 2023 Regular Board Meetings: Special Board or Committee Meetings (3rd Wednesday of Each Month or as Noted) January 4, 2023 February 1, 2023 March 1, 2023 April 5, 2023 May 3, 2023 June 7, 2023 July 5, 2023 August 2, 2023 September 6, 2023 October 4, 2023 November 1, 2023 December 6, 2023 January 18, 2023 February 15, 2023 March 15, 2023 April 19, 2023 May 17, 2023 June 21, 2023 July 19, 2023 August 16, 2023 September 20, 2023 October 18, 2023 November 15, 2023 December 20, 2023 STAFF REPORT TYPE MEETING: Board Meeting MEETING DATE: April 5, 2023 SUBMITTED BY: Kevin Koeppen, Assistant Chief of Finance PROJECT: DIV. NO.All APPROVED BY: Joseph R. Beachem, Chief Financial Officer Jose Martinez, General Manager SUBJECT: Informational Report Presenting the 2023 Economic Outlook Update for San Diego County Prepared by London Moeder Advisors GENERAL MANAGER’S RECOMMENDATION: Informational Report presenting the 2023 Economic Outlook Update for San Diego County prepared by London Moeder Advisors. PURPOSE: To present to the Board the 2023 Economic Outlook Update for San Diego County prepared by Gary London of London Moeder Advisors. DISCUSSION: Each year, the District goes through a budget process with new challenges. The budget process starts in December and culminates with a budget presentation to the Board in June. Consistent with the FY 2023 budget process, the FY 2024 budget will be presented to the Board in three (3) presentations: 1.The first consists of this Economic Outlook Update presentation, which will be used to evaluate potential economic impacts on revenues and budget for growth. 2.The second presentation will be a Board Workshop on April 26 to review key assumptions and inputs used to prepare the budget, including known opportunities and challenges. 3.The third and final presentation of the consolidated budget will be on June 7. At that time, staff will be presenting AGENDA ITEM 9a 2 the consolidated FY 2024 budget and request Board approval of the following items: • The FY 2023-2024 Operating and Capital Budget. • The interfund transfers for potable, recycled, and sewer. • Actions associated with the recommended rate changes. • Adoption of the FY 2024 Salary Schedule. • Direction from the Board to draft and mail water and sewer rate notices. To prepare the budget, staff makes every effort to present the most realistic set of factors and assumptions based on information received from various sources, including growth and economic expectations. Part of this process includes engaging an Economist to perform an Economic Outlook study evaluating the projected health of both the global and local economies. The study includes discussions about macro and micro economic activities, including a six-year projection of development within the District. Staff incorporates the information provided in this report into the budget preparation including estimated growth-related revenues and costs, and inflation factors. For the six-year period from 2023 to 2028, the current Economic Outlook study projects Equivalent Dwelling Units (EDUs) will be 3% less compared to last year’s study for the same period. Overall, EDUs are projected to be slightly lower, which equates to a $1.6 million dollar decrease in capacity fees - excluding inflationary adjustments. This decrease is offset by inflationary adjustments in the capacity fee resulting in the per EDU capacity fee being 5.4% greater than what was projected in the 2023 budget, therefore increasing capacity fees by $2.7 million. The net result is an increase in projected capacity fees for the 2023 to 2024 period of approximately $1.1 million. 3 FISCAL IMPACT: Joseph R. Beachem, Chief Financial Officer The $1.1 million increase in capacity fee revenue will provide a benefit to rates equivalent to a one-time 1.1% rate benefit. STRATEGIC OUTLOOK: The District ensures its continued financial health through long-term financial planning and debt planning. LEGAL IMPACT: None. Attachments: A)London Moeder Advisors PowerPoint Presentation B)London Moeder Advisors Economic Outlook Report - 200 400 600 800 1,000 1,200 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 ED U ' s Fiscal Years Equivalent Dwelling Units (EDUs) -Actual and Projected Actual Projected 2024 Projected 2023 Nathan Moeder 619.269-4012 nathan@londonmoeder.com Gary London 619.269.4010 glondon@londonmoeder.com Attachment A Economic Outlook – Otay Water District 2023 March 2023 Attachment B • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: April 5, 2023 SUBMITTED BY: Jose Martinez 0BGeneral Manager W.O./G.F. NO: N/A DIV. NO. N/A APPROVED BY: Jose Martinez, General Manager SUBJECT: 1BGeneral Manager’s Report UADMINISTRATIVE SERVICESU: GIS: •New GIS Portal – Staff developed a GIS portal that provides easy access to District asset management applications. The portal contains 12 GIS based applications developed by staff. The portal is now available via the District’s SharePoint intranet. The portal will help staff make informed decisions and improve the overall efficiency and effectiveness of District operations and its asset management program. Human Resources: •Benefits - An RFP for benefits consulting services was issued on March 13, 2023. Evaluations are scheduled to be conducted in April. •New Hires/Recruitments - The District recently filled the following positions: o Pump Mechanic I o Recycled Water Specialist (2nd vacancy) The District is scheduled to fill the following positions in April: o Reclamation Plant Operator I/II/III o Electrician I/II AGENDA ITEM 10 2 The District is recruiting for the following positions: o Environmental Compliance Specialist o Senior Civil Engineer or Associate Civil Engineer IT Operations: • Tyler Eden Upgrade - Staff is preparing to perform a minor update on the District's Financial and Budgeting System, Tyler Eden. The update (5.28.1.2) provides minor enhancements and necessary patches associated with various Eden financial modules, including updates to updated IRS revisions, Accounts Payable module, and Utility Billing functionality. • SCADA Upgrade Project - Staff is actively testing the new SCADA environment and working with its contractor to finalize the implementation strategy, including verification of real-time data between current and new software, key feature validation, alarm testing, redundancy testing, failover, and communication availability. The testing is anticipated to be completed by middle of next month. Purchasing & Facilities: • Drone Program Update and DroneDeploy Teams – In July of 2022, the District engaged TeeDeeUAS, LLC, an SDGE drone contractor, to provide introductory training for nine staff members representing Water Operations, Utility Maintenance, Construction Inspection, and Facilities. While staff prepare to complete the FAA required Remote Pilot in Command (RPIC) certification, TeeDeeUAS is baseline mapping District facilities in 2D and 3D formats while, on occasion, providing staff onsite preflight, flight and post flight instruction with supervised hands-on training in takeoff, maneuvering, and landing. To manage the data collected, the District is implementing DroneDeploy Teams, a cloud-based solution to build aerial maps and models utilizing its integrated flight automation, data capture, 3 data processing and analysis capabilities. Teams delivers a collaborative environment with: o Unlimited cloud storage and priority processing plus Ground Control Points processing with Real-Time Kinematic positioning for survey quality maps. o 2D/3D Inspection workflow to tag issues for follow up, tracking and resolution. o Radiometric Thermal Processing suitable for surface leak detection. o 360 Walkthrough for virtual interior and exterior ground level mapping. Safety & Security: • Training: o Public Management Academy – Staff attended the first sessions of the Certified Public Management Academy (PMA) program, which runs from February – May 2023. The PMA is built on competencies found to be critical for leaders to succeed in public organizations. Some of the sessions focus on specific skill development, but emphasis is placed on developing a “big picture” approach. The result is the creation of a cohort of public leaders who look more deeply at their responsibilities from an organization-wide perspective. o Traffic Control and Flagger Awareness – Meter Services staff perform work in and around residential and commercial streets and can be exposed to vehicle hazards. Training was provided to utilize current equipment such as high visibility vests, vehicle hazard lights, arrow boards, hand signaling and safety cones to alert other drivers while performing temporary sidewalk or street work. 4 o Liebert Cassidy Whitmore HR Bootcamp – Staff attended the one- day workshop and was updated on most significant legal developments, disability leaves, discipline process and performance management. • Meetings, Webinars, and Workshops: o Winter Storm Applicant Briefing DR-4683 – On March 8th, staff attended the County of San Diego’s Winter Storm Applicant Briefing. The meeting provided entities applying for state and/or federal winter storm reimbursement funds with information on the required steps and timelines related to the process and an opportunity to ask questions. The District is attending to seek potential reimbursement for eligible work as a sub- applicant through the County’s proclamation and request for assistance. o SDCWA – Staff met the new Risk and Safety Manager, Tom Marcoux, and discussed future topics for the Water Agency Emergency Collaborative (WAEC) Group. The District will participate in future WAEC steering committee meetings to effectively reach out to water agencies and communicate about emergency management and InfraGard (security-related) items. o Respiratory Exposure Assessments – It has been five years since the District’s Respiratory Protection Program has been re- evaluated. Staff is re-evaluating the occupational health medical exam and respirator selection requirements under the Cal/OSHA Respiratory Protection Program. To comply with the respiratory selection element, it is recommended that we re- evaluate our previous hazard assessments, possibly re-monitor potential airborne contaminants, document, and retrain employees. The data will either help us confirm or remove specific operations in the annual respirator medical exam program. Supervisors completed respiratory exposure assessments forms and forwarded them to Safety for review. o 30MG Reservoir Aqueous Ammonia Incidental Release Incident After Action Summary – Staff held an after-action review (AAR) of the incidental release caused by the third-party delivery company. The AAR was used to debrief a project or event and understand what took place, why it happened the way it did, and how to improve on it. A summary of events and lessons learned were presented. The findings were also shared with the third-party delivery company and await confirmation that the corrective actions have been disseminated and documented. 5 o RESCU Application – Watchlight Corporation, the District’s private security company, conducted an overview of the application for staff onsite. The application provides help in an emergency and works similarly like the medical bracelets but without the equipment and monthly subscription costs. Watchlight is offering the application and service at no charge for all District staff. UFINANCE: • Insurance Renewals – The District is a member of the Association of California Water Agencies Joint Powers Insurance Authority (ACWA JPIA). The following insurance programs are renewed annually with new policies effective on July 1, 2023. o Cyber Insurance – This program covers business interruption, security breach, system failure, cyber extortion, data recovery, liability, e-crime, fraud, and criminal reward. With the assistance of various departments, Finance completed and submitted the renewal application for cyber coverage in March 2023. The renewal required detailed disclosures regarding data storage, user ID protection, back-up recovery, encryption standards, web-content, personnel data protections, vendor data protections, and customer data protections. The premium was previously based on the total insured value (TIV) of property, but the underwriters are now changing the basis of the premium from TIV to actual cyber risk of the pool members. The JPIA expects an increase of at least 20% for the entire pool, our share is expected to be $25,000-$30,000. o Fiduciary Liability Insurance – This program provides indemnification to employees that serve on the District’s Deferred Compensation Committee. The renewal application was completed and submitted to the JPIA. o Property Insurance Coverage – Premiums are based on total asset valuation and cover buildings, reservoirs, pump stations, and pressure reducing stations including related equipment and facility improvements. The program also covers vehicles, mobile equipment, and trailers. The Property Program covers the typical perils such as fire, theft, vandalism, wind, and auto collision. The District reviewed the list of insured assets covered by the JPIA and identified a few items that need to be updated. The list of changes was sent to ACWA JPIA on Monday, March 13. Staff anticipate an updated list of insured assets to be made available for final review in early April. • US Bank Acquisition of MUFG Union Bank – Accounting, Customer Service, and IT staff completed nearly 200 on-line trainings covering the new US Bank processes. Staff are reviewing the US Bank 6 Product Implementation Guide and preparing a list of action items to enable a smooth conversion. Finance and IT are continuing to work with the US Bank Technical Team to create file layouts for processing Utility Bill Payments and Payroll. Armor pick-up service through Union Bank will end on April 1. A new contract with Brinks was executed to ensure that armor services continue seamlessly through the transition period. The new contract begins on April 1, and may be renewed annually. • Investment Policy – 2023 Updates - Staff is currently working on updating the broker/dealer questionnaires, financial statements, SEC certifications, and insurance information for our list of approved brokers. Additionally, staff is reviewing legislation to determine if changes to the Investment Policy are needed. The staff report is pending until the California Debt and Investment Advisory Commission issues its Annual Investment Guide for Local Agencies. We expect the guide to be issued by March 30. The staff report, shall one be needed to make changes to the Investment Policy, will be brought to the Board in May. • Lakeview HOA Hydopneumatic Pump and FY 2024 O&M Budget – Finance completed the FY 2024 annual budget for maintaining and replacing the Lakeview HOA dedicated pump station and updated the replacement reserve contribution. The budget notice and proposed billing was sent to the HOA on March 9, 2023. • 2023 Winter Storms Declared Emergency and FEMA Funding - On March 8, Finance attended the FEMA applicants briefing at San Diego County offices along with representatives from local cities, special districts, and tribal governments. At this meeting, FEMA and CalOES presented an overview of the new grants process. Subsequently on March 10, Finance submitted a Request for Public Assistance (RPA) to FEMA via the Federal Government Grants Portal. FEMA requires that applicants document damages with photos and track all resources used at the sites. As such, staff have taken photos of all the damage and are tracking repair expenses. Additionally, the following documents will be submitted by Finance to CalOES for payment processing: Designation of Applicant’s Agent Resolution (OES-FPD-130), List of Authorized Agents (OES-FPD-012), and Project Assurances for Federal Assistance (OES-FPD-89). The estimate for damages is $75,000 and covers seven locations of road repair work at the District. Permanent improvements are also being assessed by Operations and qualify for additional grant funding through a separate Hazard Mitigation program that is being researched. 7 Financial Reporting: • The financial reporting for February 28, 2023 is as follows: o For the eighth month ending February 28, 2023, there are total revenues of $78,389,499 and total expenses of $76,534,682. The revenues exceeded expenses by $1,854,817. • The financial reporting for investments for February 28, 2023 is as follows: o The market value shown in the Portfolio Summary and in the Investment Portfolio Details as of February 28, 2023 total $106,295,524 with an average yield to maturity of 3.429%. The total earnings year to date are $1,513,347. UENGINEERING AND WATER SYSTEM OPERATIONS: Engineering: • Vista Diego Hydropneumatic Pump Station Replacement and 12-inch Pipeline Replacement, 1530 Zone, Vista Diego Road: This project includes replacement of the existing Pump Station, which serves the small 1530 Pressure Zone, containing approximately thirty-seven (37) potable water meters and four (4) hydrants. The project also includes 1530 Pressure Zone distribution system improvements in support of the Pump Station Replacement project. Since District staff took over the project, with the intent that District staff would complete the remainder of the project in-house with support of the District’s as-needed consultants, the 30% redesign was completed and a review meeting was held August 8, 2022. District staff have been working to develop an alternative concept to solve a recently identified constructability issue associated with overhead utilities, including power, telephone, and cable. An alternative concept intended to avoid relocating overhead utilities was presented and well received by District staff on January 31, 2023. A 60% drawing submittal for temporary trailer mounted pump station and distribution system improvements was completed March 27, 2023. The project is within budget. (P2639 and P2680) • 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. Consultant selection for design and construction support to Carollo Engineers was approved by the Board at the June 2021 Board Meeting. Design work initiated in July 2021. Monitoring of ultraviolet transmittance has been completed and analyzed for setting the design criteria for the UV equipment. Initial contact with the regulating state agencies has been made. Information on available equipment manufacturers has been assessed and pre- 8 procurement procedures completed for designing the project around the Trojan UV system. A memorandum of understanding has been reached with Trojan for procuring the UV system through the construction contractor at a bid obtained cost. This will also prevent materials acquisition delays related to this equipment. The 90% design was submitted in February 2023 and the review completed in March. Bidding of the project is expected to occur in May. The project is within budget and on schedule. (R2117 and R2157) • Olympic Parkway Recycled Water Line Replacement: Several main breaks within the past year of the 20-inch recycled water line in Olympic Parkway between Heritage Road and La Media Road resulted in the establishment of this Capital Improvement Program Project at the May 2021 Board meeting. The engineering firm, NV5, has been selected to design the replacement waterline using the District’s As-Needed Engineering Design Services contract. The project was bid in October 2022 and bids opened on November 15, 2022. The construction contract with Burtech was approved by the Board of Directors at their January 2023 meeting. The City of Chula Vista permits have been obtained. Consideration was given to potentially using trenchless installation, but several drawbacks and limitations eliminated it from selection. Traffic control design was handled through the As-Needed Traffic Engineering Services contract. The contractor is preparing submittals and procuring materials. Mobilization is scheduled to start in May. The project is within budget. (R2159) • Paso de Luz and Vista Sierra Waterlines Replacement: The existing 1950’s steel water lines in the Hillsdale area have been identified for replacement due to past failures. Under this contract, the water line between Vista Grande and Vista Sierra will be replaced. Included in this project is the replacement of a water line between Paso de Luz and Telegraph Canyon Road in Chula Vista that is located in an easement on an embankment. The water line has been isolated due to a leak, removing the redundancy for this neighborhood. Bids were opened in February 2022 with the construction contract approved by the Board at the April 2022 meeting. A limited notice to proceed was provided in May 2022 to begin material acquisition. Pre-con was held on August 3, 2022 and the formal notice to proceed was issued on August 8, 2022. Construction started in February 2023 at Vista Sierra with public outreach made in January. Work is continuing on Vista Sierra towards Vista Grande. The project is within budget. (P2612 & P2616) • 1655-1 Reservoir & Rancho Jamul Hydropneumatic Pump Station: This project consists of constructing a new 0.5 MG prestressed concrete potable water tank in Jamul and modifying the existing Rancho Jamul Hydropneumatic Pump Station (HPS) to become the permanent Pump 9 Station to feed the new 1655-1 Reservoir. The project also includes replacing approximately 1,500 linear feet of existing pipe that will be experiencing pressure over the rated pressure class under the new configuration. Richard Brady and Associates (Brady) delivered the 60% design on July 6, 2022. Staff provided comments back to Brady on September 7, 2022. Brady is working toward 90% design. The project is within budget. (P2040, P2642, & P2681) • Recycled Water Pipeline Cathodic Protection Improvements: This project includes repairs to existing cathodic protection systems, such as anode replacement and cathodic test station repairs for recycled water pipelines located in the Central Area. The project was advertised for bid in March 2022 and was awarded at the June 8, 2022 Board Meeting. The contract was executed, the notice to proceed was issued for August 1, 2022, and the pre-construction meeting was held. Construction is anticipated to begin upon delivery of materials in early March 2023. In November 2022, the project contract time was extended sixty-six (66) calendar days due to supply chain issues out of the contractor's control. The contractor, M-Rae commenced field work February 2023. The contractor is working to complete the project by the end of April. The project is within budget. (R2146) • Advanced Metering Infrastructure Upgrade Project: This project will provide the District with the ability to measure water usage in real-time. This will allow customers to access their consumption data online and compare historic usage. Currently, the District has approximately 24,000 AMI-compatible meters installed throughout the service area. This phase of the project will install the base antennas, repeaters, as well as network hardware and software to implement the system. The project was awarded to OT Electrical at the January 2023 Board meeting. The contract was executed January 19, 2023, and the contractor has processed submittals and is procuring materials. Field work is scheduled to begin on April 3. The project is on schedule and within budget. (P2682) • 1004-2 & 485-1 Reservoir Interior/Exterior Coating: This project consists of removing and replacing the interior and exterior coatings of the 1004-2 (1.4 MG) and the 485-1 (1.0 MG) Reservoirs, along with providing structural upgrades, to ensure the tanks comply with both state and federal OSHA standards as well as the American Water Works Association and the County Health Department standards. Unified Field Services Corp. (Unified) was awarded the construction contract at the November 2022 Board Meeting. The Notice to Proceed was issued on January 3, 2023. Unified will complete the structural upgrades on the 1004-2 tank by the end of March and will begin recoating the interior surfaces. Work on the 485-1 Tank is scheduled to begin on April 3. The project is within budget. (P2567 & P2614) 10 • FY 2023 Sewage Flows to Metro vs Planned Capacity: The Metro Amended and Restated Regional Wastewater Disposal Agreement became 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. Metro capacity was set based upon the District’s sewer system requirements through planning year 2050. The Ralph W. Chapman Water Reclamation Facility again had to reduce production in February due to rainy weather and resulting decrease in recycled water use. This resulted in more sewage sent to the Metro system. The graph below shows that the District is still on track to remain under the Metro capacity for the fiscal year. • Summary of Budgeted and Sold Meters and EDUs for Fiscal Year 2023 up through February 28, 2023: Date Meters (Budgeted) Meters Sold (Actual) EDUs (Budgeted) EDUs Sold (Actual) Total $ (Budgeted) Total $ Collected (Actual) Feb 2023 25.7 6 66.9 25 $206,750 $216,947 Totals FY 2023 205.3 91 535 243 $1,654,000 $3,246,203 11 UWater System Operations: • On Tuesday, February 14th, staff performed an unplanned shutdown on Jefferson Road, between Lyons Valley Road and Campo Road in Jamul. The 14-inch steel main had developed a leak due to corrosion. This shutdown affected 16 customers and lasted approximately 15.5 hours, with four water trailers available on site for the affected customers. • During Wednesday, February 15th through Friday, February 17th, all PLC programs were manually uploaded from the PLCs and saved as back-ups to be historically maintained. These PLC program back-ups are part of a preventative maintenance program that ensures the database to the controller programs are up to date and allows to track changes over time, as well as quick deployment of programs in the event of a field device failure requiring program restoration. • On Tuesday, February 21st, staff assisted Utility Maintenance with placing 980-2 Pump Station out of service. Staff disconnected and removed SCADA instrumentation to replace the insulation gaskets for the suction and discharge lines for cathodic protection. • On Wednesday, February 22nd, staff performed a planned shutdown to replace three water distribution system valves in the Vista Cielo Drive area in Jamul. The valves were identified with excessive leakby during routine valve maintenance. Water isolation valves are critical components of water distribution systems for separating pipe segments from the network for repair and maintenance purposes. The shutdown affected 15 meters and lasted nine hours with two water trailers available for the affected meters. • On Friday, February 24th, third-party vendor, Tri-County, removed pump #1 at the 927 Pump Station for overhaul since there was failure on the pump gear head. The pump was damaged and will be repaired. The Treatment Plant currently has four other pumps available for redundancy. • On Monday, February 27th, staff isolated the hydropneumatic tank at the 1100 Hydro Station, to perform an internal tank inspection and cleaning. Inspections and cleanings are performed every five years as proactive maintenance and are completed the same day without any disruptions to the system. Hydropneumatic tanks are designed to maintain on-demand pressurized water without the continuous use of a pump and can provide storage in small water systems. By regulating system pressures, hydropneumatic tanks provide efficient water supply to quickly meet system demand. There were no customer impacts during these inspections and cleanings. Staff is in the process of reviewing the inspection report. 12 • The following events occurred on Tuesday, February 28th: o Staff isolated the hydropneumatic tank at the 1050 Hydro Station, to perform an internal tank inspection and cleaning. Inspections and cleanings are performed every five years as proactive maintenance. No issues were noted during the inspection. o Mexico water deliveries were completed for the month of February at approximately 9:00 a.m. Representatives from participating agencies were present to validate final water meter read. • On Wednesday, March 1st and Thursday, March 2nd, process instrument calibrations for 20 flowmeters (all billable and regulatory- compliant) were performed by an outside contractor. Due to the potential inter-agency or regulating authority interest in these particular calibrations, a third party vendor is contracted to perform the maintenance to eliminate potential biases. No issues were found during calibrations. • On Thursday, March 2nd, staff performed a planned shutdown to replace six water distribution system valves in the Vista Cielo Drive area in Jamul. The valves were identified with excessive leakby during routine valve maintenance. Water isolation valves are critical components of water distribution systems for isolating pipe segments for repair and maintenance purposes. The shutdown affected 19 meters and lasted nine hours, with two water trailers available on site for the affected meters. • The following events occurred on Friday, March 3rd: o The 485-1 Reservoir was isolated and drained for interior and exterior re-coating CIP work. The purpose of re-coating is to preserve the integrity of the reservoir. This work is part of the District’s reservoir re-coating program. o Staff replaced two (2) eight-inch and three (3) six-inch gate valves on Vista Cielo Drive and Vista Cielo Lane in Spring Valley, as part of the FY23 CIP valve replacements. Two of these valves were identified as inoperable and all were over 35 years old. This area is also part of San Diego County’s Road Improvements CIP and replacing these valves now potentially avoids any extra paving costs to the District due to repairs after paving is complete. Staff replaced the valves, poured concrete support pads, thrust blocks, and plated the holes for the night. The next day, staff completed the backfill and placed temporary asphalt to restore the roadway. o Pump Mechanics completed pump efficiency testing at three pump stations (1100 HS, 980-1PS and 711-1) with a total of 11 pieces of equipment evaluated. Pump efficiency measures how well a pump converts the useful energy from a hydraulic power source and transfers it to the pump output. This test is part of the 13 predictive maintenance program performed to assess the condition of the District’s assets and the information generated is then used to predict possible failures, repairs, or replacement of pumps and motors. The District is waiting for the final report. • On Monday, March 6th, Treatment Plant staff conducted a plant tour for 20 students from the Center of Water Studies at Cuyamaca College. The tour was well received by the instructor and students. The District will continue to foster relationships with local agencies and educational institutions which will positively impact the District with regards to attracting and retaining future talent. • On Wednesday, March 8th, a start failure alarm was received at the 980-1 Pump Station and Electricians and SCADA staff were dispatched to the site. A phase failure was detected on equipment #1, control was restored, and it was back in operation. In an effort to reduce breakdowns at the 980-1 Pump Station, major preventive maintenance on the motor control center (MCC) is scheduled for Tuesday, March 28th. To perform this important maintenance, it was necessary to coordinate with SDG&E for a planned outage and have Baker Electric to perform the work. • On Thursday, March 9th, staff isolated a section of the recycled main on Piper Ranch Road in Otay Mesa. This was done to identify an unknown source of water intruding into the potable distribution system’s trench line. There are no indications of a District side leak at this time. • During this period, Pump Mechanics, along with a third-party vendor (HTM), performed inspections of the pressure vessels at 1100 Hydro Station (Monday, February 27th), 1050 Pointe Hydro (Tuesday, February 28th), and 980-2 Pump Station (Thursday, March 9th). Regular inspections are critical to the maintenance process for pressure vessels which can identify issues before they become problems for the District. • Automatic transfer switch (ATS) inspections were completed at the following nine sites: 450/680 Recycled Pump Station, 570-1 Disinfection Station, 870-2 Pump Station, 1100 Hydro Station, 1655 Hydro Station, 1296 Pump Station, 711-1 Pump Station, 1050 Hydro Station, and 680/944 Recycled Pump Station. During the inspection, obsolete equipment was detected and recommended for replacement at the 711 Pump Station, 1296 Pump Station, and 1655 Hydro Station since they are at the end of their life, UPurchase and Change OrdersU: • The following table summarizes purchases and change orders issued during the period from February 21, 2023 through March 14, 2023 that were within staff signatory authority: 14 Date Action Amount Project Contractor/ Consultant/Vendor 2/21/2023 P.O. $24,680.00 STEEL ROLL UP DOORS VINYARD DOORS, INC 2/27/2023 P.O. $13,370.00 LED RETROFIT OT ELECTRICAL 2/27/2023 P.O. $7,869.00 FY23 WEBSITE MAINTENANCE SUPPORT & CONSULTING SERVICES NIGHTCODERS 3/01/2023 P.O. $6,173.01 FY23 TREATMENT PLANT REPORTING TOOL AQUATIC INFORMATICS, INC. 3/07/2023 CC $1,215.61 RWCWRF FILTERED WATER STORAGE TANK IMPROVEMENTS (R2120) ADVANCED WATER TREATMENT TECHNOLOGIES, INC 3/14/2023 P.O. $37,606.00 FY23-25 LEADERSHIP & MANAGEMENT TRAINING FRANKLINCOVEY 3/14/2023 P.O. $2,499.00 MANAGEMENT TRAINING THE CENTRE FOR ORGANIZATION EFFECTIVENESS UWater Conservation and Sales: • Water Conservation – February 2023 usage was 12% lower than February 2013 usage. Since February 2022, customers have saved an average of 10% over 2013 levels. 15 • Conservation 2020 vs Present – On July 8, 2021, Governor Gavin Newsom called on Californians to voluntarily reduce water use by 15%. The benchmark year for comparison is 2020. The chart below shows the difference in usage. February 2023 usage was 19% lower than February 2020. Since July 2021, customer usage decreased 2.66% compared to 2020 levels. • Potable Water Purchases – The February potable water purchases were 1,530 acre-feet which is 13.3% below the budget of 1,763 acre-feet. Fiscal year-to-date potable purchases are 18,522 acre-feet, which is 7.5% below the cumulative budget of 20,018 acre-feet. 16 • Recycled Water Purchases – The February recycled water purchases from the City of San Diego and production at the District’s treatment facility were 56 acre-feet which is 47.4% below the budget of 107 acre-feet. Fiscal year-to-date recycled purchases and production are 2,314 acre-feet, which is 10.7% below the cumulative budget of 2,592 acre-feet. • Rainfall for the month of February and year-to-date can be seen in the table below. Rainfall February FY-T-D Actual 1.76 12.90 Historical Average 0.39 5.26 Variance 1.37 (351.3%) 7.64 (145.2%) UPotable, Recycled, and Sewer (Reporting up to the month of February): • Total number of potable water meters: 51,611. • Total number of sewer connections: 4,740. • Recycled water consumption for the month of February: o Total consumption: 58.27 acre-feet or 18,987,232 gallons. o Average daily consumption: 678,115 gallons per day. 17 o Total cumulative recycled water consumption since February 1, 2022: 2,502.5 acre-feet. o Total number of recycled water meters: 775. • Wastewater flows for the month of February: o Total basin flow: 1,712,250 gallons per day. ▪ This is an increase of 6.5 percent from February 2022. o Spring Valley Sanitation District flows to Metro: 570,750 gallons per day. o Total Otay flow: 1,141,464 gallons per day. o Flow processed at the Ralph W. Chapman Water Recycling Facility: 648,357 gallons per day. o Flow to Metro from Otay Water District: 493,107 gallons per day. o By the end of February there were 6,752 wastewater EDUs. Exhibit A Annual YTD REVENUES: Budget Actual Budget Variance Var % Potable Water Sales 61,958,000$ 38,822,324$ 41,564,000$ (2,741,676)$ (6.6%) Recycled Water Sales 10,217,000 6,607,684 7,160,100 (552,416) (7.7%) Potable Energy Charges 2,721,000 1,795,810 1,893,700 (97,890) (5.2%) Potable System Charges 15,168,000 11,027,881 11,004,000 23,881 0.2% Potable MWD & CWA Fixed Charges 13,547,000 9,155,312 9,056,000 99,312 1.1% Potable Penalties and Other Fees 914,000 688,510 639,078 49,432 7.7% Total Water Sales 104,525,000 68,097,521 71,316,878 (3,219,357) (4.5%) Sewer Charges 3,284,000 2,151,854 2,143,974 7,880 0.4% Meter Fees 170,000 54,863 113,600 (58,737) (51.7%) Capacity Fee Revenues 2,311,000 1,715,669 1,540,800 174,869 11.3% Non-Operating Revenues 2,523,100 2,226,320 1,682,000 544,320 32.4% Tax Revenues 5,310,000 3,672,467 3,237,600 434,867 13.4% Interest 495,000 470,805 330,000 140,805 42.7% Total Revenues 118,618,100$ 78,389,499$ 80,364,852$ (1,975,353)$ (2.5%) EXPENSES: Potable Water Purchases 44,250,000$ 27,978,741$ 30,316,800$ 2,338,059$ 7.7% Recycled Water Purchases 5,487,000 3,992,334 3,992,334 - 0.0% CWA-Infrastructure Access Charge 2,998,000 2,062,220 2,029,200 (33,020) (1.6%) CWA-Customer Service Charge 1,881,000 1,255,478 1,249,000 (6,478) (0.5%) CWA-Reliability Charge 3,003,000 1,996,624 1,983,400 (13,224) (0.7%) CWA-Emergency Storage Charge 4,711,000 3,153,350 3,140,800 (12,550) (0.4%) MWD-Capacity Res Charge 762,000 527,931 535,200 7,269 1.4% MWD-Readiness to Serve Charge 685,000 409,037 446,000 36,963 8.3% Subtotal Water Purchases 63,777,000 41,375,715 43,692,734 2,317,019 5.3% Power Charges 3,893,000 3,017,928 2,727,500 (290,428) (10.6%) Payroll & Related Costs 22,649,100 13,851,117 14,904,200 1,053,083 7.1% Material & Maintenance 4,132,600 2,673,792 2,755,300 81,508 3.0% Administrative Expenses 7,602,700 4,249,005 5,075,726 826,721 16.3% Legal Fees 455,000 640,165 303,200 (336,965) (111.1%) Expansion Reserve 684,800 456,560 456,560 - 0.0% Replacement Reserve 8,393,600 5,596,000 5,596,000 - 0.0% OPEB Trust 2,080,900 1,387,200 1,387,200 - 0.0% General Fund Reserve 40,400 27,200 27,200 - 0.0% Rate Stabilization Reserve 19,000 - - - 0.0% Total Expenses 118,618,100$ 76,534,682$ 80,185,620$ 3,650,938$ 4.6% EXCESS REVENUES(EXPENSE) -$ 1,854,817$ 179,232$ 1,675,585$ OTAY WATER DISTRICT COMPARATIVE BUDGET SUMMARY FOR THE EIGHT MONTHS ENDED FEBRUARY 28, 2023 F:/MORPT/FS2023-P8 3/23/2023 1:37 PM The year-to-date actual net revenues through February show a positive variance of $1,854,817. COMPARATIVE BUDGET SUMMARY NET REVENUE AND EXPENSES FOR THE EIGHT MONTHS ENDED FEBRUARY 28, 2023 ‐$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 $724,343 0.67%$40,749,190 37.49% $67,224,782 61.85% Otay Water District Investment Portfolio: 02/28/2023 Banks (Passbook/Checking/CD)Pools (LAIF & County)Agencies,Treasury Securities & Money Market Mutual Funds Total Cash and Investments: $108,698,315 (Book Value) July FY22 Aug FY22 Sep FY22 1st Qtr FY22 Oct FY22 Nov FY22 Dec FY22 2nd Qtr FY22 Jan FY22 Feb FY22 Mar FY22 3rd Qtr FY22 Apr FY22 May FY22 June FY22 4th Qtr FY22 July FY23 Aug FY23 Sep FY23 1st Qtr FY23 Oct FY23 Nov FY23 Dec FY23 2nd Qtr FY23 Jan FY23 Feb FY23 Otay 0.57 0.59 0.57 0.58 0.54 0.52 0.52 0.53 0.52 0.57 0.62 0.57 0.80 0.91 1.10 0.94 1.32 1.46 1.74 1.50 2.06 2.52 2.91 2.49 3.00 3.44 LAIF 0.22 0.22 0.21 0.20 0.20 0.20 0.21 0.20 0.23 0.28 0.37 0.29 0.52 0.68 0.86 0.69 1.09 1.28 1.51 1.29 1.77 2.01 2.17 1.98 2.43 2.62 Difference 0.35 0.37 0.36 0.38 0.34 0.32 0.31 0.32 0.29 0.29 0.25 0.28 0.28 0.23 0.24 0.25 0.23 0.18 0.23 0.21 0.29 0.51 0.74 0.51 0.57 0.82 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 Re t u r n o n I n v e s t m e n t s Month Performance Measure FY-23 Return on Investment Otay LAIF Difference Target: Meet or Exceed 100% of LAIF OTAY WATER DISTRICT INVESTMENT PORTFOLIO REVIEW February 28, 2023 INVESTMENT OVERVIEW & MARKET STATUS: At the Federal Reserve Board's regular scheduled meeting on March 22, 2023, the Committee increased the target range for the federal funds rate from 4.75% to 5.00%. Recent indicators show modest growth in spending and production, and job gains, while the unemployment rate remains low. The Committee will closely monitor incoming information and assess the implications for monetary policy. The Committee's long-term goal is to attain maximum employment and inflation of 2%. The Committee will continue to reduce its holdings of Treasury securities, agency debt, and agency mortgage-backed securities, as outlined in the Plans for Reducing the Size of the Federal Reserve's Balance Sheet issued in May 2022. The Committee will continue to observe the effects of incoming information on the economic outlook. In determining the timing and size of future adjustments to the target range for the federal funds rate, they went on to say: "the Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments." The District's effective rate of return for February 2023 was 3.44%, forty-four basis points higher than the previous month. LAIF's return was nineteen basis points higher than the last month, reaching an average effective yield of 2.62% for February 2023. Based on our success at maintaining a competitive rate of return on our portfolio during this period of increasing interest rates, no changes in investment strategy regarding returns on investment are being considered. Under the District's Investment Policy, all District funds continue to be managed based on the objectives, in priority order, of safety, liquidity, and return on investment. PORTFOLIO COMPLIANCE: February 28, 2023 Investment State Limit Otay Limit Otay Actual 8.01: Treasury Securities 100% 100% 4.48% 8.02: Local Agency Investment Fund (Operations) $75 Million $75 Million $25.64 Million 8.03: Federal Agency Issues 100% 100% 57.34% 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% 0.03% 8.08: San Diego County Pool 100% 100% 13.90% 12.0: Maximum Single Financial Institution 100% 50% 0.67% Month End Portfolio Management February 28, 2023 Portfolio Summary % of Portfolio Book ValueInvestmentsMarket Value Par Value Days to MaturityTerm YTM 360 Equiv. YTM 365 Equiv. Federal Agency Issues- Callable 27,593,621.05 64225.56 4.09449027,190,932.0027,600,000.00 4.151 Treasury Securities - Coupon 4,864,367.53 2194.51 4.9672134,861,550.005,000,000.00 5.035 Federal Agency Issues - Bullet 34,731,267.82 79532.17 3.41859033,746,073.1634,796,000.00 3.465 Money Market 35,525.55 10.03 1.994135,525.5535,525.55 2.022 Local Agency Investment Fund (LAIF)25,644,360.63 123.75 2.588125,167,100.0525,644,360.63 2.624 San Diego County Pool 15,104,829.20 113.99 2.841114,570,000.0015,104,829.20 2.880 107,973,971.78 100.00%Investments 105,571,180.76108,180,715.38 430 325 3.382 3.429 Cash (not included in yield calculations) Passbook/Checking 724,343.43 1 0.6941724,343.43724,343.43 0.703 108,698,315.21Total Cash and Investments 106,295,524.19108,905,058.81 430 325 3.382 3.429 Current Year February 28 288,320.28 Fiscal Year To Date 1,513,346.60 Average Daily Balance Effective Rate of Return 109,140,236.26 106,064,675.82 2.14%3.44% 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 11, 2022. The investments provide sufficient liquidity to meet the cash flow requirements of the District for the next six months of expenditures. __________________________________________________ ____________________ Joseph Beachem, Chief Financial Officer Portfolio OTAY NL! APData Updated: SET_PM1: 03/22/2023 17:27 Reporting period 02/01/2023-02/28/2023 Run Date: 03/22/2023 - 17:27 PM (PRF_PM1) 7.3.11 Report Ver. 7.3.11 03/24/2023 YTM 360 Page 1 Par Value Book Value Maturity Date Stated RateMarket Value February 28, 2023 Portfolio Details - Investments Average BalanceIssuer Portfolio Management Month End Days to MaturityMoody'sCUSIPInvestment #Purchase Date Federal Agency Issues- Callable 1.294Federal Home Loan Bank2395 2,000,000.00 1,993,621.05 07/26/20241.08002/03/2022 1,887,420.00 Aaa3130AQL68 513 1.973Federal Home Loan Bank2396 2,000,000.00 2,000,000.00 03/28/20242.00003/30/2022 1,931,420.00 Aaa3130ARE31 393 2.615Federal Home Loan Bank2398 2,000,000.00 2,000,000.00 02/16/20242.65005/16/2022 1,949,020.00 Aaa3130ARWD9 352 3.652Federal Home Loan Bank2401 3,000,000.00 3,000,000.00 06/13/20243.70009/13/2022 2,940,450.00 Aaa3130AT4S3 470 4.438Federal Home Loan Bank2403 3,000,000.00 3,000,000.00 10/28/20244.50011/03/2022 2,964,990.00 Aaa3130ATLK1 607 4.818Federal Home Loan Bank2412 5,000,000.00 5,000,000.00 10/27/20234.87501/27/2023 4,982,900.00 P-13130AUGF5 240 4.932Federal Home Loan Mortgage2406 3,000,000.00 3,000,000.00 04/25/20255.00010/25/2022 2,975,250.00 Aaa3134GX6A7 786 4.932Federal Home Loan Mortgage2407 1,600,000.00 1,600,000.00 11/08/20245.00011/08/2022 1,591,072.00 Aaa3134GX5C4 618 5.055Federal Home Loan Mortgage2408 3,000,000.00 3,000,000.00 11/22/20245.12511/28/2022 2,981,640.00 Aaa3134GY3P5 632 5.001Federal Home Loan Mortgage2409 3,000,000.00 3,000,000.00 05/23/20245.07011/23/2022 2,986,770.00 Aaa3134GY3Q3 449 27,593,621.0527,190,932.0027,600,000.0027,593,426.17Subtotal and Average 4.094 490 Treasury Securities - Coupon 4.967US TREASURY2414 5,000,000.00 4,864,367.53 09/30/20230.25002/23/2023 4,861,550.00 Aaa91282CDA6 213 4,864,367.534,861,550.005,000,000.001,042,023.34Subtotal and Average 4.967 213 Federal Agency Issues - Bullet 2.855Federal Farm Credit Bank2397 2,000,000.00 1,994,067.67 04/25/20252.75004/26/2022 1,911,520.00 Aaa3133ENVC1 786 4.261Federal Farm Credit Bank2402 3,000,000.00 2,994,967.92 09/30/20254.25009/30/2022 2,968,020.00 Aaa3133ENP95 944 4.488Federal Farm Credit Bank2405 3,000,000.00 2,991,895.57 10/17/20244.37510/19/2022 2,963,610.00 Aaa3133ENS43 596 4.284Federal Farm Credit Bank2410 3,000,000.00 2,995,180.63 12/20/20244.25012/20/2022 2,957,520.00 Aaa3133EN4N7 660 3.361Federal Home Loan Bank2399 3,000,000.00 2,999,520.00 09/01/20233.37509/01/2022 2,970,960.00 Aaa3130AT5B9 184 3.449Federal Home Loan Bank2400 3,000,000.00 2,995,544.72 06/14/20243.37509/08/2022 2,931,090.00 Aaa3130AT4D6 471 4.338Federal Home Loan Bank2404 3,000,000.00 2,999,032.99 09/13/20244.37510/18/2022 2,968,200.00 Aaa3130ATND5 562 4.724Federal Home Loan Bank2411 2,000,000.00 1,999,377.60 12/15/20234.75012/20/2022 1,992,960.00 Aaa3130AUBA1 289 4.912Federal Home Loan Bank2413 5,000,000.00 5,000,990.76 11/08/20235.00002/10/2023 4,991,650.00 P-13130AUUB8 252 0.612Federal Home Loan Mortgage2391 1,045,000.00 1,038,507.93 09/23/20250.37509/16/2021 939,151.95 Aaa3137EAEX3 937 0.618Federal Home Loan Mortgage2392 2,751,000.00 2,733,556.60 09/23/20250.37509/22/2021 2,472,351.21 Aaa3137EAEX3 937 0.996Federal National Mortage Assoc2393 2,000,000.00 2,022,345.86 01/07/20251.62512/09/2021 1,885,960.00 Aaa3135G0X24 678 1.129Federal National Mortage Assoc2394 2,000,000.00 1,966,279.57 11/07/20250.50012/15/2021 1,793,080.00 Aaa3135G06G3 982 34,731,267.8233,746,073.1634,796,000.0033,122,634.51Subtotal and Average 3.418 590 Money Market 2.012Blackrock T - Fund Inst9010 8,346.48 8,346.48 2.0408,346.48RESERVE-10A WRB 1 2.012Blackrock T - Fund Inst9011 16,226.12 16,226.12 2.04016,226.12RESERVE 10 BABS 1 1.953FIRST AMERICAN US TREASURY9016 10,952.95 10,952.95 1.98010,952.95OWD TRUST & CUS 1 35,525.5535,525.5535,525.551,958,543.73Subtotal and Average 1.994 1 Portfolio OTAY NL! APData Updated: SET_PM1: 03/22/2023 17:27 Run Date: 03/22/2023 - 17:27 PM (PRF_PM2) 7.3.11 Report Ver. 7.3.11 YTM 360 Page 2 Par Value Book Value Maturity Date Stated RateMarket Value February 28, 2023 Portfolio Details - Investments Average BalanceIssuer Portfolio Management Month End Days to MaturityMoody'sCUSIPInvestment #Purchase Date Local Agency Investment Fund (LAIF) 2.588STATE OF CALIFORNIA9001 25,644,360.63 25,644,360.63 2.62425,167,100.05LAIF 1 25,644,360.6325,167,100.0525,644,360.6328,571,146.34Subtotal and Average 2.588 1 San Diego County Pool 2.841San Diego County9007 15,104,829.20 15,104,829.20 2.88014,570,000.00SD COUNTY POOL 1 15,104,829.2014,570,000.0015,104,829.2015,104,829.20Subtotal and Average 2.841 1 109,140,236.26 108,180,715.38 3.382 325105,571,180.76 107,973,971.78Total and Average Portfolio OTAY NL! APData Updated: SET_PM1: 03/22/2023 17:27 Run Date: 03/22/2023 - 17:27 PM (PRF_PM2) 7.3.11 YTM 360 Page 3 Par Value Book Value Stated RateMarket Value February 28, 2023 Portfolio Details - Cash Average BalanceIssuer Portfolio Management Month End Days to MaturityMoody'sCUSIPInvestment #Purchase Date Union Bank 0.000STATE OF CALIFORNIA9002 100.02 100.02100.02UNION MONEY 1 0.000STATE OF CALIFORNIA9003 2,950.00 2,950.002,950.00PETTY CASH 1 0.740STATE OF CALIFORNIA9004 679,293.47 679,293.47 0.750679,293.47UNION OPERATING 1 0.000STATE OF CALIFORNIA9005 28,220.87 28,220.8707/01/2022 28,220.87PAYROLL 1 0.000STATE OF CALIFORNIA9014 13,779.07 13,779.0707/01/2022 13,779.07UBNA-FLEX ACCT 1 0.00 109,140,236.26 108,905,058.81 3.382 325 1Average Balance 106,295,524.19 108,698,315.21Total Cash and Investments Portfolio OTAY NL! APData Updated: SET_PM1: 03/22/2023 17:27 Run Date: 03/22/2023 - 17:27 PM (PRF_PM2) 7.3.11 Month End Activity Report Sorted By Issuer February 1, 2023 - February 28, 2023 Current Rate Transaction Date BalanceBeginning 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 28.692.040 0.00RESERVE-10A WRB Blackrock T - Fund Inst9011 55.772.040 0.00RESERVE 10 BABS 0.0024,488.14 24,572.60Subtotal and Balance 84.46 84.46 0.0024,488.14 24,572.600.023%Issuer Subtotal Issuer: STATE OF CALIFORNIA Union Bank STATE OF CALIFORNIA9004 310,698.770.750 1,055,106.79UNION OPERATING STATE OF CALIFORNIA9014 1,357.02 8,007.79UBNA-FLEX ACCT 1,063,114.581,475,402.22 724,343.43Subtotal and Balance 312,055.79 Local Agency Investment Fund (LAIF) STATE OF CALIFORNIA9001 7,250,000.002.624 15,700,000.00LAIF 15,700,000.0034,094,360.63 25,644,360.63Subtotal and Balance 7,250,000.00 7,562,055.79 16,763,114.5835,569,762.85 26,368,704.0624.213%Issuer Subtotal Issuer: FIRST AMERICAN US TREASURY Money Market FIRST AMERICAN US TREASURY9016 9,841,738.241.980 10,083,024.53OWD TRUST & CUS 10,083,024.53252,239.24 10,952.95Subtotal and Balance 9,841,738.24 9,841,738.24 10,083,024.53252,239.24 10,952.950.010%Issuer Subtotal Issuer: Federal Farm Credit Bank Federal Agency Issues - Bullet 11,000,000.00 11,000,000.00Subtotal and Balance 0.00 0.0011,000,000.00 11,000,000.0010.101%Issuer Subtotal Portfolio OTAY NL! APData Updated: SET_PM1: 03/22/2023 17:27 Run Date: 03/22/2023 - 17:27 DA (PRF_DA) 7.3.11 Report Ver. 7.3.11 Current Rate Transaction Date BalanceBeginning Balance Ending Par Value Page 2 Percent of Portfolio Par Value February 1, 2023 - February 28, 2023 Activity Report Month End CUSIP Investment #Issuer Purchases or Deposits Redemptions or Withdrawals Issuer: Federal Home Loan Bank Federal Agency Issues- Callable 17,000,000.00 17,000,000.00Subtotal and Balance Federal Agency Issues - Bullet Federal Home Loan Bank2413 5,000,000.005.000 02/10/2023 0.003130AUUB8 0.0011,000,000.00 16,000,000.00Subtotal and Balance 5,000,000.00 5,000,000.00 0.0028,000,000.00 33,000,000.0030.302%Issuer Subtotal Issuer: Federal Home Loan Mortgage Federal Agency Issues- Callable 10,600,000.00 10,600,000.00Subtotal and Balance Federal Agency Issues - Bullet 3,796,000.00 3,796,000.00Subtotal and Balance 0.00 0.0014,396,000.00 14,396,000.0013.219%Issuer Subtotal Issuer: Federal National Mortage Assoc Federal Agency Issues - Bullet 4,000,000.00 4,000,000.00Subtotal and Balance 0.00 0.004,000,000.00 4,000,000.003.673%Issuer Subtotal Issuer: San Diego County San Diego County Pool 15,104,829.20 15,104,829.20Subtotal and Balance 0.00 0.0015,104,829.20 15,104,829.2013.870%Issuer Subtotal Issuer: US TREASURY Treasury Securities - Coupon US TREASURY2414 5,000,000.000.250 02/23/2023 0.0091282CDA6 0.000.00 5,000,000.00Subtotal and Balance 5,000,000.00 5,000,000.00 0.000.00 5,000,000.004.591%Issuer Subtotal Portfolio OTAY NL! APData Updated: SET_PM1: 03/22/2023 17:27 Run Date: 03/22/2023 - 17:27 DA (PRF_DA) 7.3.11 Report Ver. 7.3.11 Current Rate Transaction Date BalanceBeginning Balance Ending Par Value Page 3 Percent of Portfolio Par Value February 1, 2023 - February 28, 2023 Activity Report Month End CUSIP Investment #Issuer Purchases or Deposits Redemptions or Withdrawals 108,347,319.43 108,905,058.81Total26,846,139.1127,403,878.49100.000% Portfolio OTAY NL! APData Updated: SET_PM1: 03/22/2023 17:27 Run Date: 03/22/2023 - 17:27 DA (PRF_DA) 7.3.11 Report Ver. 7.3.11 Month End Duration Report Sorted by Investment Type - Investment Type Through 02/28/2023 Investment #Security ID Issuer Investment Class Book Value Par Value Market Value Current Rate YTM Current Yield Maturity/ Call Date DurationModified360Fund Federal Home Loan Bank239599 2,000,000.00 1,887,420.003130AQL68 5.297 07/26/2024 1.3581,993,621.05 1.294Fair1.0800000 Federal Home Loan Bank239699 2,000,000.00 1,931,420.003130ARE31 5.326 03/28/2024 1.0322,000,000.00 1.973Fair2.0000000 Federal Home Loan Bank239899 2,000,000.00 1,949,020.003130ARWD9 5.417 02/16/2024 0.9262,000,000.00 2.615Fair2.6500000 Federal Home Loan Bank240199 3,000,000.00 2,940,450.003130AT4S3 5.325 06/13/2024 1.2223,000,000.00 3.652Fair3.7000000 Federal Home Loan Bank240399 3,000,000.00 2,964,990.003130ATLK1 5.248 10/28/2024 1.5513,000,000.00 4.438Fair4.5000000 Federal Home Loan Mortgage240699 3,000,000.00 2,975,250.003134GX6A7 5.415 04/25/2025 1.9763,000,000.00 4.932Fair5.0000000 Federal Home Loan Mortgage240799 1,600,000.00 1,591,072.003134GX5C4 5.355 11/08/2024 1.5711,600,000.00 4.932Fair5.0000000 Federal Home Loan Mortgage240899 3,000,000.00 2,981,640.003134GY3P5 5.507 11/22/2024 1.6083,000,000.00 5.055Fair5.1250000 Federal Home Loan Mortgage240999 3,000,000.00 2,986,770.003134GY3Q3 5.453 05/23/2024 1.1583,000,000.00 5.001Fair5.0700000 Federal Home Loan Bank241299 5,000,000.00 4,982,900.003130AUGF5 5.424 10/27/2023 0.6325,000,000.00 4.818Fair4.8750000 US TREASURY241499 5,000,000.00 4,861,550.0091282CDA6 5.125 09/30/2023 0.5664,864,367.53 4.967Fair.25000000 Federal Home Loan Mortgage239199 1,045,000.00 939,151.953137EAEX3 4.614 09/23/2025 2.4881,038,507.93 0.612Fair.37500000 Federal Home Loan Mortgage239299 2,751,000.00 2,472,351.213137EAEX3 4.614 09/23/2025 2.4882,733,556.60 0.618Fair.37500000 Federal National Mortage Assoc239399 2,000,000.00 1,885,960.003135G0X24 4.887 01/07/2025 1.7812,022,345.86 0.996Fair1.6250000 Federal National Mortage Assoc239499 2,000,000.00 1,793,080.003135G06G3 4.646 11/07/2025 2.6031,966,279.57 1.129Fair.50000000 Federal Farm Credit Bank239799 2,000,000.00 1,911,520.003133ENVC1 4.946 04/25/2025 2.0301,994,067.67 2.855Fair2.7500000 Federal Home Loan Bank239999 3,000,000.00 2,970,960.003130AT5B9 5.331 09/01/2023 0.5042,999,520.00 3.361Fair3.3750000 Federal Home Loan Bank240099 3,000,000.00 2,931,090.003130AT4D6 5.249 06/14/2024 1.2282,995,544.72 3.449Fair3.3750000 Federal Farm Credit Bank240299 3,000,000.00 2,968,020.003133ENP95 4.694 09/30/2025 2.3712,994,967.92 4.261Fair4.2500000 Federal Home Loan Bank240499 3,000,000.00 2,968,200.003130ATND5 5.104 09/13/2024 1.4372,999,032.99 4.338Fair4.3750000 Federal Farm Credit Bank240599 3,000,000.00 2,963,610.003133ENS43 5.165 10/17/2024 1.5242,991,895.57 4.488Fair4.3750000 Federal Farm Credit Bank241099 3,000,000.00 2,957,520.003133EN4N7 5.085 12/20/2024 1.6972,995,180.63 4.284Fair4.2500000 Federal Home Loan Bank241199 2,000,000.00 1,992,960.003130AUBA1 5.221 12/15/2023 0.7571,999,377.60 4.724Fair4.7500000 Federal Home Loan Bank241399 5,000,000.00 4,991,650.003130AUUB8 5.262 11/08/2023 0.6635,000,990.76 4.912Fair5.0000000 Blackrock T - Fund Inst901099 8,346.48 8,346.48RESERVE-10A 2.040 0.0008,346.48 2.012Amort2.0400000 Blackrock T - Fund Inst901199 16,226.12 16,226.12RESERVE 10 2.040 0.00016,226.12 2.012Amort2.0400000 FIRST AMERICAN US TREASURY901699 10,952.95 10,952.95OWD TRUST &1.980 0.00010,952.95 1.953Amort1.9800000 Portfolio OTAY NL! APPage 1Data Updated: SET_PM1: 03/22/2023 17:27 Run Date: 03/22/2023 - 17:27 DU (PRF_DU) 7.3.11 Report Ver. 7.3.11 Investment #Security ID Issuer Investment Class Book Value Par Value Market Value Current Rate YTM Current Yield Maturity/ Call Date DurationModified360 Sorted by Investment Type - Investment Type Duration Report Month End Through 02/28/2023 Fund STATE OF CALIFORNIA900199 25,644,360.63 25,167,100.05LAIF 2.624 0.00025,644,360.63 2.588Fair2.6240000 San Diego County900799 15,104,829.20 14,570,000.00SD COUNTY 2.880 0.00015,104,829.20 2.841Fair2.8800000 4.258 0.835107,973,971.78 108,180,715.38 105,571,180.76Report Total † = Duration can not be calculated on these investments due to incomplete Market price data. Portfolio OTAY NL! APPage 2Data Updated: SET_PM1: 03/22/2023 17:27 Run Date: 03/22/2023 - 17:27 DU (PRF_DU) 7.3.11 Report Ver. 7.3.11 Month End GASB 31 Compliance Detail Sorted by Fund - Fund February 1, 2023 - February 28, 2023 Investment #Maturity Date Beginning Invested Value Purchase of Principal InvestmentClassFundCUSIP Adjustment in Value Ending Invested Value Addition to Principal Redemption of Principal Amortization Adjustment Change in Market Value Fund: Treasury Fund 2408 2,995,110.00Fair Value 11/22/2024 -13,470.0099 2,981,640.003134GY3P50.00 0.00 0.00 0.00 2407 1,598,128.00Fair Value 11/08/2024 -7,056.0099 1,591,072.003134GX5C40.00 0.00 0.00 0.00 2406 2,995,680.00Fair Value 04/25/2025 -20,430.0099 2,975,250.003134GX6A70.00 0.00 0.00 0.00 2391 950,845.50Fair Value 09/23/2025 -11,693.5599 939,151.953137EAEX30.00 0.00 0.00 0.00 2392 2,503,134.90Fair Value 09/23/2025 -30,783.6999 2,472,351.213137EAEX30.00 0.00 0.00 0.00 2409 2,996,340.00Fair Value 05/23/2024 -9,570.0099 2,986,770.003134GY3Q30.00 0.00 0.00 0.00 2393 1,903,280.00Fair Value 01/07/2025 -17,320.0099 1,885,960.003135G0X240.00 0.00 0.00 0.00 2394 1,818,980.00Fair Value 11/07/2025 -25,900.0099 1,793,080.003135G06G30.00 0.00 0.00 0.00 2395 1,898,100.00Fair Value 07/26/2024 -10,680.0099 1,887,420.003130AQL680.00 0.00 0.00 0.00 2396 1,938,220.00Fair Value 03/28/2024 -6,800.0099 1,931,420.003130ARE310.00 0.00 0.00 0.00 2398 1,955,840.00Fair Value 02/16/2024 -6,820.0099 1,949,020.003130ARWD90.00 0.00 0.00 0.00 2404 2,996,010.00Fair Value 09/13/2024 -27,810.0099 2,968,200.003130ATND50.00 0.00 0.00 0.00 2400 2,950,800.00Fair Value 06/14/2024 -19,710.0099 2,931,090.003130AT4D60.00 0.00 0.00 0.00 2413 0.00Fair Value 11/08/2023 -9,425.0099 4,991,650.003130AUUB85,001,075.00 0.00 0.00 0.00 2412 5,008,000.00Fair Value 10/27/2023 -25,100.0099 4,982,900.003130AUGF50.00 0.00 0.00 0.00 2401 2,958,270.00Fair Value 06/13/2024 -17,820.0099 2,940,450.003130AT4S30.00 0.00 0.00 0.00 2403 2,985,030.00Fair Value 10/28/2024 -20,040.0099 2,964,990.003130ATLK10.00 0.00 0.00 0.00 2399 2,968,140.00Fair Value 09/01/2023 2,820.0099 2,970,960.003130AT5B90.00 0.00 0.00 0.00 2411 2,005,620.00Fair Value 12/15/2023 -12,660.0099 1,992,960.003130AUBA10.00 0.00 0.00 0.00 9001 33,459,839.28Fair Value 157,260.7799 25,167,100.05LAIF0.00 7,250,000.00 15,700,000.00 0.00 9005 28,220.87Amortized 0.0099 28,220.87PAYROLL0.00 0.00 0.00 0.00 9002 100.02Amortized 0.0099 100.02UNION MONEY 0.00 0.00 0.00 0.00 9014 20,429.84Amortized 0.0099 13,779.07UBNA-FLEX ACCT 0.00 1,357.02 8,007.79 0.00 9003 2,950.00Amortized 0.0099 2,950.00PETTY CASH 0.00 0.00 0.00 0.00 9004 1,423,701.49Amortized 0.0099 679,293.47UNION OPERATING 0.00 310,698.77 1,055,106.79 0.00 2402 3,015,060.00Fair Value 09/30/2025 -47,040.0099 2,968,020.003133ENP950.00 0.00 0.00 0.00 2410 2,991,120.00Fair Value 12/20/2024 -33,600.0099 2,957,520.003133EN4N70.00 0.00 0.00 0.00 2397 1,935,360.00Fair Value 04/25/2025 -23,840.0099 1,911,520.003133ENVC10.00 0.00 0.00 0.00 2405 2,993,310.00Fair Value 10/17/2024 -29,700.0099 2,963,610.003133ENS430.00 0.00 0.00 0.00 2414 0.00Fair Value 09/30/2023 1,003.1099 4,861,550.0091282CDA64,860,546.90 0.00 0.00 0.00 9007 14,525,000.00Fair Value 45,000.0099 14,570,000.00SD COUNTY POOL 0.00 0.00 0.00 0.00 9016 252,239.24Amortized 0.0099 10,952.95OWD TRUST & CUS 0.00 9,841,738.24 10,083,024.53 0.00 9010 8,317.79Amortized 0.0099 8,346.48RESERVE-10A WRB 0.00 28.69 0.00 0.00 Portfolio OTAY NL! APData Updated: SET_PM1: 03/22/2023 17:27 Run Date: 03/22/2023 - 17:27 GD (PRF_GD) 7.3.11 Report Ver. 7.3.11 Investment #Maturity Date Beginning Invested Value Purchase of Principal InvestmentClass Sorted by Fund - Fund Fund Page 2 CUSIP Adjustment in Value Ending Invested Value Addition to Principal Redemption of Principal Amortization Adjustment Change in Market Value GASB 31 Compliance Detail Month End Fund: Treasury Fund 9011 16,170.35Amortized 0.0099 16,226.12RESERVE 10 BABS 0.00 55.77 0.00 0.00 106,097,347.28Subtotal -221,184.37 106,295,524.199,861,621.90 17,403,878.49 26,846,139.11 0.00 106,097,347.28Total 106,295,524.19-221,184.379,861,621.90 17,403,878.49 26,846,139.11 0.00 Portfolio OTAY NL! APData Updated: SET_PM1: 03/22/2023 17:27 Run Date: 03/22/2023 - 17:27 GD (PRF_GD) 7.3.11 Report Ver. 7.3.11 Month End Interest Earnings Sorted by Fund - Fund February 1, 2023 - February 28, 2023 Yield on Beginning Book Value Maturity Date Current Rate Ending Par Value EndingSecurityTypeFundBook ValueBeginningBook Value Adjusted Interest Earnings Accretion Amortization/ Earnings Adjusted InterestAnnualized YieldCUSIPInvestment #Interest Earned Fund: Treasury Fund 3,000,000.0024083,000,000.00 5.125MC111/22/2024 12,812.50 0.00 12,812.505.567993,000,000.003134GY3P5 1,600,000.0024071,600,000.00 5.000MC111/08/2024 6,666.67 0.00 6,666.675.432991,600,000.003134GX5C4 3,000,000.0024063,000,000.00 5.000MC104/25/2025 12,500.00 0.00 12,500.005.432993,000,000.003134GX6A7 1,038,507.9323911,045,000.00 0.375FAC09/23/2025 326.57 211.24 537.810.675991,038,296.693137EAEX3 2,733,556.6023922,751,000.00 0.375FAC09/23/2025 859.69 567.57 1,427.260.681992,732,989.033137EAEX3 3,000,000.0024093,000,000.00 5.070MC105/23/2024 12,675.00 0.00 12,675.005.508993,000,000.003134GY3Q3 2,022,345.8623932,000,000.00 1.625FAC01/07/2025 2,708.33 -1,006.57 1,701.761.096992,023,352.433135G0X24 1,966,279.5723942,000,000.00 0.500FAC11/07/2025 833.34 1,047.22 1,880.561.247991,965,232.353135G06G3 1,993,621.0523952,000,000.00 1.080MC107/26/2024 1,800.00 378.94 2,178.941.425991,993,242.113130AQL68 2,000,000.0023962,000,000.00 2.000MC103/28/2024 3,333.33 0.00 3,333.332.173992,000,000.003130ARE31 2,000,000.0023982,000,000.00 2.650MC102/16/2024 4,416.66 0.00 4,416.662.879992,000,000.003130ARWD9 2,999,032.9924043,000,000.00 4.375FAC09/13/2024 10,937.50 52.55 10,990.054.777992,998,980.443130ATND5 2,995,544.7224003,000,000.00 3.375FAC06/14/2024 8,437.50 288.68 8,726.183.798992,995,256.043130AT4D6 5,000,990.7624135,000,000.00 5.000FAC11/08/2023 14,583.33 -84.24 14,499.095.570990.003130AUUB8 5,000,000.0024125,000,000.00 4.875MC110/27/2023 20,312.50 0.00 20,312.505.296995,000,000.003130AUGF5 3,000,000.0024013,000,000.00 3.700MC106/13/2024 9,250.00 0.00 9,250.004.019993,000,000.003130AT4S3 3,000,000.0024033,000,000.00 4.500MC110/28/2024 11,250.00 0.00 11,250.004.888993,000,000.003130ATLK1 2,999,520.0023993,000,000.00 3.375FAC09/01/2023 8,437.50 80.00 8,517.503.702992,999,440.003130AT5B9 1,999,377.6024112,000,000.00 4.750FAC12/15/2023 7,916.67 65.75 7,982.425.205991,999,311.853130AUBA1 25,644,360.63900125,644,360.63 2.624LA1 57,511.76 0.00 57,511.762.1999934,094,360.63LAIF 28,220.87900528,220.87PA1 0.00 0.00 0.009928,220.87PAYROLL 100.029002100.02PA1 0.00 0.00 0.0099100.02UNION MONEY 13,779.07901413,779.07PA1 0.00 0.00 0.009920,429.84UBNA-FLEX ACCT 2,950.0090032,950.00PA1 0.00 0.00 0.00992,950.00PETTY CASH 679,293.479004679,293.47 0.750PA1 975.39 0.00 975.390.893991,423,701.49UNION OPERATING 2,994,967.9224023,000,000.00 4.250FAC09/30/2025 10,625.00 162.50 10,787.504.696992,994,805.423133ENP95 2,995,180.6324103,000,000.00 4.250FAC12/20/2024 10,625.00 222.77 10,847.774.722992,994,957.863133EN4N7 1,994,067.6723972,000,000.00 2.750FAC04/25/2025 4,583.33 229.93 4,813.263.147991,993,837.743133ENVC1 2,991,895.5724053,000,000.00 4.375FAC10/17/2024 10,937.50 414.90 11,352.404.947992,991,480.673133ENS43 4,864,367.5324145,000,000.00 0.250TRC09/30/2023 206.04 3,820.63 4,026.675.040990.0091282CDA6 15,104,829.20900715,104,829.20 2.880LA3 33,371.33 0.00 33,371.332.8809915,104,829.20SD COUNTY POOL 10,952.95901610,952.95 1.980PA2 2,937.52 0.00 2,937.5215.18199252,239.24OWD TRUST & CUS Portfolio OTAY NL! APData Updated: SET_PM1: 03/22/2023 17:27 Run Date: 03/22/2023 - 17:27 IE (PRF_IE) 7.3.11 Report Ver. 7.3.11 Maturity Date Current Rate Ending Par Value EndingSecurityTypeFund Page 2 Book ValueBeginningBook Value Adjusted Interest Earnings Accretion Amortization/ Earnings Adjusted Interest February 1, 2023 - February 28, 2023 Interest Earnings Month End Annualized YieldCUSIPInvestment #Interest Earned Fund: Treasury Fund 8,346.4890108,346.48 2.040PA2 13.06 0.00 13.062.047998,317.79RESERVE-10A WRB 16,226.12901116,226.12 2.040PA2 25.39 0.00 25.392.0479916,170.35RESERVE 10 BABS 108,905,058.81Subtotal 108,698,315.21 3.458 288,320.286,451.87281,868.41108,272,502.06 108,905,058.81Total 108,698,315.21 3.458 288,320.286,451.87281,868.41108,272,502.06 Portfolio OTAY NL! APData Updated: SET_PM1: 03/22/2023 17:27 Run Date: 03/22/2023 - 17:27 IE (PRF_IE) 7.3.11 Report Ver. 7.3.11 SUMMARY FOR PERIOD 2/16/2023 - 3/22/2023 NET DEMANDS $)&$,4 70*%$)&$,4 505"-$)&$,4 8*3&50 #&/&'*54$003%*/"5034%&/5"-$0#3"$-"*.4 '&# #&/&'*54$003%*/"5034%&/5"-#&/&'*54"%.*/'&&4 '&# #&/&'*54$003%*/"5034%&/5"-#&/&'*54"%.*/'&&4 '&# $*5:0'$)6-"7*45"#*.0/5)-:4&8&3$)"3(&4 +"/'&# $*5:53&"463&3.&53010-*5"/4&8&3"(&4:45&. ':3%253 $*5:53&"463&33&$-"*.&%8"5&3163$)"4& '&# $*5:53&"463&33&$-"*.&%8"5&3163$)"4& +"/ 05":8"5&3%*453*$5#*8&&,-:1":30--%&%6$5*0/ 05":8"5&3%*453*$5#*8&&,-:1":30--%&%6$5*0/ 16#-*$&.1-0:&&43&54:45&.#*8&&,-:1&34$0/53*#65*0/ 16#-*$&.1-0:&&43&54:45&.#*8&&,-:1&34$0/53*#65*0/ 16#-*$&.1-0:&&43&54:45&.#*8&&,-:1&34$0/53*#65*0/ 4"/%*&(0$06/5:8"5&3"65)8"5&3%&-*7&3*&4$)"3(&4 +"/ 41&$*"-%*453*$53*4,&.1-0:&&.&%*$"-#&/&'*54 "13 41&$*"-%*453*$53*4,&.1-0:&&.&%*$"-#&/&'*54 ."3 64#"/,/"5*0/"-"440$*"5*0/4&3*&4##0/%4 4&.*"//6"- 64#"/,/"5*0/"-"440$*"5*0/4&3*&4"#0/%4 4&.*"//6"- 64#"/,/"5*0/"-"440$*"5*0/4&3*&4#0/%4 4&.*"//6"- 64#"/,/"5*0/"-"440$*"5*0/4&3*&4#0/%4 4&.*"//6"- 64#"/,/"5*0/"-"440$*"5*0/4&3*&4"#0/%4 4&.*"//6"- 64#"/,/"5*0/"-"440$*"5*0/4&3*&4#0/%4 4&.*"//6"- 6/*0/#"/,#*8&&,-:1":30--5"9&4 6/*0/#"/,#*8&&,-:1":30--5"9&4 6/*0/#"/,#*8&&,-:1":30--5"9&4 64#"/,$"-$"3%&91&/4&4 .0/5)-: PURPOSE: "UUBDIFEJTUIFMJTUPGEFNBOETGPSUIF#PBSEhTJOGPSNBUJPO FISCAL IMPACT: STAFF REPORT TYPE MEETING: SUBMITTED BY: APPROVED BY: APPROVED BY: SUBJECT: 3FHVMBS#PBSE &JE'BLIPVSJ 'JOBODF.BOBHFS 5SFBTVSZ"DDPVOUJOH4FSWJDFT +PTFQI#FBDIFN $IJFG'JOBODJBM0GGJDFS +PTF.BSUJOF[ (FOFSBM.BOBHFS "DDPVOUT1BZBCMF%FNBOE-JTU MEETING DATE: W.O./G.F. NO: DIV. NO. "QSJM 70:"'*/"/$*"-#*8&&,-:"1-"/ 70:"'*/"/$*"-#*8&&,-:"1-"/ 70:"'*/"/$*"-#*8&&,-:"1-"/ TOTAL CASH DISBURSEMENTS $ 13,970,333.88 RECOMMENDED ACTION: 5IBUUIF#PBSESFDFJWFEUIFBUUBDIFEMJTUPGEFNBOET +C"UUBDINFOU Check Total 3,645.60 14,645.00 2,923.34 PROF SERV (JAN 2023)181,434.10 181,434.10 10/25/22 TREATMENT PLANT REPORTING TOOL 6,173.00 6,173.00 2059383 02/22/23 17264 ARTIANO SHINOFF ABED 306614 02/16/23 1,543.19 0092955 01/27/23 OMNI 3-4" 3" AND 4" C2 REG 1,380.15 2059458 03/08/23 21641 AQUATIC INFORMATICS INC.102410 TUITION REIMBURSEMENT 1,623.35 1,623.35 2059382 02/22/23 03492 AQUA-METRIC SALES COMPANY 0092954 01/27/23 OMNI 4" AND 6" C2 REG CM20238 03/02/23 CMIS (1/1/23-2/28/23)825.00 2059457 03/08/23 19121 APUY, MELISSA MA030623 03/06/23 CM202310 03/03/23 CMIS (1/1/23-2/28/23)2,640.00 CM20237 03/02/23 CMIS (1/1/23-2/28/23)825.00 CMIS (1/1/23-2/28/23)6,435.00 CM202311 03/02/23 CMIS (1/1/23-2/28/23)3,920.00 2059532 03/22/23 14462 ALYSON CONSULTING CM20239 03/02/23 7,250.01 2059420 03/01/23 21759 ALSTON CHERESKIN Ref002687624 02/27/23 UB Refund Cst #0000283462 72.05 72.05 843.18 843.18 2059381 02/22/23 14256 ALLIANT INSURANCE SERVICES INC 2192987 01/13/23 INSURANCE CONSULTING SERVICES FY23 7,250.01 FIRE ALARM ANNUAL SERVICES 429.49 429.49 2059500 03/15/23 21773 ALEX BOZENHARD 1516031423 03/14/23 CUSTOMER REFUND 2059427 03/01/23 18296 ALBIREO ENERGY LLC PIN0025572 02/27/23 2,029.20 9134521523 01/30/23 AS-NEEDED AQUA AMMONIA FY23 928.80 9134521521 01/30/23 AS-NEEDED AQUA AMMONIA FY23 687.60 SEWER FLOW MONITORING FY23 890.00 890.00 2059380 02/22/23 07732 AIRGAS SPECIALTY PRODUCTS INC 9134521522 01/30/23 AS-NEEDED AQUA AMMONIA FY23 2059379 02/22/23 17989 ADS CORP 22446.22-0123 01/31/23 1,544.65 2059531 03/22/23 17989 ADS CORP 22446.22-0223 02/28/23 SEWER FLOW MONITORING FY23 890.00 890.00 1,323.91 1,323.91 2059426 03/01/23 21753 ACRO CONSTRUCTORS Ref002687618 02/27/23 UB Refund Cst #0000272105 1,544.65 INTERNET CIRCUITS (JAN 2023)1,323.91 1,323.91 2059530 03/22/23 18122 ACC BUSINESS 230446901 02/27/23 INTERNET CIRCUITS (FEB 2023) 2059378 02/22/23 18122 ACC BUSINESS 230136719 01/27/23 591.79 2059499 03/15/23 08488 ABLEFORCE INC 11470 03/07/23 SHAREPOINT & INTRANET SUPP SVCS FY23 600.00 600.00 Amount 2059456 03/08/23 15416 24 HOUR ELEVATOR INC 138757 03/01/23 ELEVATOR GENERAL MAINTENANCE FY23 591.79 CHECK REGISTER Otay Water District Date Range: 2/16/2023 - 3/22/2023 Check #Date Vendor Vendor Name Invoice Inv. Date Description 1,836.00 2,687.00 23,927.67 193E637860223 03/04/23 DEVELOPER INSPECTION (FEB 2023)395.00 1,233.32 2059503 03/15/23 00184 COUNTY OF SAN DIEGO 193E602130223 03/04/23 SHUT DOWN TEST (2/17/23)1,264.00 540.75 540.75 2059461 03/08/23 00099 COUNTY OF SAN DIEGO DPWAR-0123 02/14/23 EXCAVATION PERMITS (JAN 2023)1,233.32 DATA SERVICES - PROPERTY DATA FY23 540.75 540.75 2059389 02/22/23 15049 CORELOGIC SOLUTIONS LLC 82164024 01/31/23 DATA SERVICES - PROPERTY DATA FY23 2059536 03/22/23 15049 CORELOGIC SOLUTIONS LLC 82165516 02/28/23 ACP BINS 13,825.22 214751 02/14/23 ACP BINS 10,102.45 2059460 03/08/23 21674 CONFAB MANUFACTURING CO LLC 214752 02/14/23 29622 01/31/23 BACTERIOLOGICAL TESTING (1/30/23)186.00 29623 01/31/23 BACTERIOLOGICAL TESTING (1/30/23)138.00 29621 01/31/23 BACTERIOLOGICAL TESTING (1/30/23-1/31/23)462.00 29618 01/31/23 BACTERIOLOGICAL TESTING (1/11/23)324.00 BACTERIOLOGICAL TESTING (1/12/23-1/15/23)881.00 29620 01/31/23 BACTERIOLOGICAL TESTING (1/17/23-1/18/23)696.00 30064 02/28/23 BACTERIOLOGICAL TESTING (2/15/23)216.00 2059388 02/22/23 04119 CLARKSON LAB & SUPPLY INC 29619 01/31/23 30061 02/28/23 BACTERIOLOGICAL TESTING (2/8/23)216.00 30063 02/28/23 BACTERIOLOGICAL TESTING (2/13/23)216.00 696.00 30062 02/28/23 BACTERIOLOGICAL TESTING (2/8/23)276.00 30060 02/28/23 BACTERIOLOGICAL TESTING (2/1/23)216.00 DISINFECTION SYS IMPROVE (JAN 2023)18,489.75 18,489.75 2059535 03/22/23 04119 CLARKSON LAB & SUPPLY INC 30065 02/28/23 BACTERIOLOGICAL TESTING (2/27/23-2/28/23) 2059459 03/08/23 15177 CAROLLO ENGINEERS INC FB33146 02/14/23 272.28 2059502 03/15/23 20773 CALIFORNIA MUNICIPAL UTILITIES 20-0431 05/18/22 MEMBERSHIP DUES 6,743.25 6,743.25 607.25 607.25 2059501 03/15/23 21770 CALIFORNIA LIHWAP 4810031423 03/14/23 CUSTOMER REFUND - INV 2107 272.28 LEGISLATIVE ADVOCACY CONSULTING SERV 492.00 492.00 2059387 02/22/23 02401 CAJON VALLEY UNION SCHOOL DIST 23115 02/17/23 WATER CONSERVATION - BUS TRANSPORT 2059386 02/22/23 08156 BROWNSTEIN HYATT FARBER 925889 02/14/23 302.00 2059385 02/22/23 04209 BRAX COMPANY INC 46147 01/31/23 980-2 PUMP #3 REPAIR 5,115.00 5,115.00 1,747.43 1,747.43 2059430 03/01/23 21136 BEAS, JOSUE 022723 02/27/23 EXPENSE REIMBURSEMENT 302.00 JANITORIAL SERVICES FY23 8,578.00 8,578.00 2059429 03/01/23 21751 B&T SERVICE STATION CONTRACTOR Ref002687616 02/27/23 UB Refund Cst #0000267943 2059534 03/22/23 20125 AZTEC LANDSCAPING INC J1434 02/28/23 3,961.61 2059384 02/22/23 20125 AZTEC LANDSCAPING INC J1403 01/31/23 JANITORIAL SERVICES FY23 8,578.00 8,578.00 85,863.26 85,863.26 2059428 03/01/23 07785 AT&T 000019483724 02/12/23 TELEPHONE SERVICES (01/12/23 - 02/11/23)3,961.61 2059533 03/22/23 17264 ARTIANO SHINOFF ABED 306700 03/14/23 PROF SERV (FEB 2023) 2,765.00 3,438.50 1,312.56 4,449.37 243.31 2059505 03/15/23 21772 ELIZABETH ALMEIDA 3204031423 03/14/23 CUSTOMER REFUND 1,230.97 1,230.97 121.33 121.33 2059465 03/08/23 02447 EDCO DISPOSAL CORPORATION 5458 022823 02/28/23 RECYCLED WASTE SERVICE FY23 243.31 MEMBERSHIP RENEWAL 350.00 350.00 2059433 03/01/23 21758 EASTLAKE PROPERTIES LLC Ref002687623 02/27/23 UB Refund Cst #0000283350 2059391 02/22/23 15180 EAST COUNTY ECONOMIC 226B5E6D-0002 02/17/23 1,197.92 2059464 03/08/23 02965 DIPIETRO, BRANDON 021523 02/15/23 EXPENSE REIMBURSEMENT 155.00 155.00 31.02 31.02 2059504 03/15/23 21771 DEVANG DEVANI 8731031423 03/14/23 CUSTOMER REFUND 1,197.92 CL2 GAS PM PARTS 20.55 20.55 2059422 03/01/23 21750 DEBORAH DAFFER Ref002687614 02/27/23 UB Refund Cst #0000095223 2059432 03/01/23 11797 D&H WATER SYSTEMS INC 2023-0154 02/06/23 CL2 GAS PM PARTS 3,374.54 2023-0193 02/15/23 CL2 GAS PM PARTS 1,074.83 2059463 03/08/23 11797 D&H WATER SYSTEMS INC 2023-0150 02/02/23 2023-0254 03/01/23 CL2 GAS PM PARTS 338.13 2023-0245 02/28/23 TOTAL ANALYZER PARTS 331.59 500.00 2059537 03/22/23 11797 D&H WATER SYSTEMS INC 2023-0242 02/28/23 CL2 GAS PM PARTS 642.84 50.24 50.24 2059462 03/08/23 04497 D & R CRANE INC 16581 02/16/23 CRANE QUARTERLY PM SERV INSPECT FY23 500.00 PERMIT FEES # 01214 (MAR 2023 - MAR 2024)599.00 599.00 2059421 03/01/23 21760 CUYLER THOMPSON Ref002687625 02/27/23 UB Refund Cst #0000284019 193E636340123 02/04/23 DEVELOPER INSPECTION (JAN 2023)79.00 2059431 03/01/23 02122 COUNTY OF SAN DIEGO 012142012RI 02/08/23 193E602480123 02/04/23 SHUT DOWN TEST (1/1/23-1/31/23)189.60 193E602360123 02/04/23 SHUT DOWN TEST (1/1/23-1/31/23)189.60 193E634510123 02/04/23 SHUT DOWN TEST (1/1/23-1/31/23)205.40 193E625850123 02/04/23 SHUT DOWN TEST (1/1/23-1/31/23)205.40 193E602140123 02/04/23 SHUT DOWN TEST (1/1/23-1/31/23)237.00 193E602090123 02/04/23 SHUT DOWN TEST (1/1/23-1/31/23)237.00 193E637810123 02/04/23 DEVELOPER INSPECTION (JAN 2023)436.50 193E602400123 02/04/23 SHUT DOWN TEST (1/1/23-1/31/23)237.00 SHUT DOWN TEST (1/1/23-1/31/23)948.00 193E602130123 02/04/23 SHUT DOWN TEST (1/1/23-1/31/23)474.00 193E638040223 03/04/23 DEVELOPER INSPECTION (FEB 2023)79.00 2059390 02/22/23 00184 COUNTY OF SAN DIEGO 193E602340123 02/04/23 193E637830223 03/04/23 SHUT DOWN TEST (2/02/23)158.00 193E638030223 03/04/23 DEVELOPER INSPECTION (FEB 2023)79.00 193E637840223 03/04/23 SHUT DOWN TEST (2/02/23)316.00 193E637880223 03/04/23 SHUT DOWN TEST (2/8/23)158.00 193E637870223 03/04/23 SHUT DOWN TEST (2/7/23-2/16/23)316.00 10,960.00 1,422.99 18,608.33 7,748.92 UB Refund Cst #0000276233 2,046.00 2,046.00 2059439 03/01/23 21756 HAMANN CONSTRUCTION Ref002687621 02/27/23 1,962.94 2059438 03/01/23 21754 HAMANN CONSTRUCTION Ref002687619 02/27/23 UB Refund Cst #0000275605 556.24 556.24 5,098.70 5,098.70 2059437 03/01/23 21752 HAMANN CONSTRUCTION Ref002687617 02/27/23 UB Refund Cst #0000268224 1,962.94 HACH CHEMKEY REAGENTS FY23 640.83 640.83 2059469 03/08/23 00174 HACH COMPANY 13464063 02/14/23 MONOCHLORAMINE ANALYZER SUPP FY23 2059508 03/15/23 00174 HACH COMPANY 13474107 02/21/23 1,684.71 2059542 03/22/23 21162 GRABLE, PETER PG032123 03/21/23 TUITION REIMBURSEMENT 195.50 195.50 4,167.99 4,167.99 2059507 03/15/23 21764 GENESIS NEW HOMES LLC Ref002687808 03/13/23 UB Refund Cst #0000241807 1,684.71 LEADERSHIP/MANAGEMENT TRAINING FY23-25 18,803.00 18,803.00 2059395 02/22/23 03094 FULLCOURT PRESS 40191 02/10/23 PRINTING PIPELINE NEWSLETTERS FY23 2059541 03/22/23 03513 FRANKLINCOVEY CLIENT SALES INC IS10703226 02/26/23 100.00 2059506 03/15/23 21053 FRANCHISE TAX BOARD Ben2687838 03/16/23 BI WEEKLY PAYROLL DEDUCTION 100.00 100.00 156.21 156.21 2059436 03/01/23 21053 FRANCHISE TAX BOARD Ben2687700 03/02/23 BI WEEKLY PAYROLL DEDUCTION 100.00 FLEETWASH SERVICES FY23 145.29 145.29 2059468 03/08/23 11962 FLEETWASH INC 2763597 02/10/23 FLEETWASH SERVICES FY23 2059435 03/01/23 11962 FLEETWASH INC 2760283 02/03/23 99.00 2059394 02/22/23 02591 FITNESS TECH 12320 02/01/23 FY23 GYM EQUIPMENT MAINTENANCE 150.00 150.00 99.00 99.00 2059540 03/22/23 17888 FIRST AMERICAN DATA TREE LLC 9003400223 02/28/23 DOCUMENT SERVICE (MONTHLY)99.00 INVENTORY 1,639.44 1,639.44 2059393 02/22/23 17888 FIRST AMERICAN DATA TREE LLC 9003400123 01/31/23 DOCUMENT SERVICE (MONTHLY) 2059539 03/22/23 03546 FERGUSON WATERWORKS # 1083 0813172 02/23/23 0821180 02/13/23 INVENTORY 634.41 0816602-1 02/13/23 INVENTORY 468.39 INVENTORY 5,339.38 0820138 02/10/23 INVENTORY 1,306.74 0814705-2 02/06/23 INVENTORY 3,258.40 2059467 03/08/23 03546 FERGUSON WATERWORKS # 1083 0816696 02/13/23 01/25/23 INVENTORY (VALVE GATE 12")11,020.97 0820595 02/01/23 INVENTORY 4,328.96 1,395.73 16564663 02/20/23 VISION BENEFITS ADMINISTRATION (CY2023)27.26 2059392 02/22/23 03546 FERGUSON WATERWORKS # 1083 0819932 MS SOFTWARE MAINTENANCE RENEWAL 2,838.20 2,838.20 2059466 03/08/23 20511 EYEMED (FIDELITY)16564448 02/20/23 VISION BENEFITS ADMINISTRATION (CY2023) 2059434 03/01/23 20794 ENTISYS 360 192415 02/21/23 ELECTRICAL ENGINEERING SERV (FEB 2023)5,980.00 19A3230217 02/28/23 ELECTRICAL ENGINEERING SERV (FEB 2023)4,980.00 2059538 03/22/23 03765 ENGINEERING PARTNERS INC 192A230216 02/28/23 1,404.11 4,963.43 3,124.01 25,597.50 112.72 2,675.00 2,292.15 01/31/23 TRAFFIC CONTROL EQUIPMENT RENTAL 1,645.00 00122511 12/16/22 TRAFFIC CONTROL EQUIPMENT RENTAL 647.15 1,345.00 00126325 02/28/23 TRAFFIC CONTROL EQUIPMENT RENTAL 1,330.00 2059511 03/15/23 06511 HUDSON SAFE-T-LITE RENTALS 001244625 MASTER METER OCTAVE METERS 9,477.88 9,477.88 2059547 03/22/23 06511 HUDSON SAFE-T-LITE RENTALS 00126293 02/28/23 TRAFFIC CONTROL EQUIPMENT RENTAL 2059471 03/08/23 21322 HPS WEST INC.0001529 02/13/23 154.71 2059510 03/15/23 20436 HOMEFED VILLAGE III 020323 02/03/23 OR V3 PHASE 3 1,577.99 1,577.99 5,070.00 5,070.00 2059509 03/15/23 21765 HOLIDAY FOLIAGE INC Ref002687809 03/13/23 UB Refund Cst #0000275042 154.71 870-1 RES COVER/LINER EVAL (FEB 2023)6,360.00 6,360.00 2059398 02/22/23 21321 HILTS CONSULTING GROUP INC 63940 02/05/23 870-1 RES COVER/LINER EVAL (JAN 2023) 542832923 02/09/23 WATER USAGE (12/8/22 - 2/6/23)56.36 2059546 03/22/23 21321 HILTS CONSULTING GROUP INC 69038 03/05/23 14,239.21 2059441 03/01/23 00062 HELIX WATER DISTRICT 4330332923 02/09/23 WATER USAGE (12/8/22 - 2/7/23)56.36 2,672.50 2,672.50 2059440 03/01/23 02008 HELIX ENVIRONMENTAL 117172 01/29/23 ENVIRONMENTAL SVCS (JAN 2023)14,239.21 WATER FACILITIES MASTER PLAN (DEC 2022)3,457.50 3,457.50 2059545 03/22/23 02008 HELIX ENVIRONMENTAL 117584 02/26/23 ENVIRONMENTAL SVCS (FEB 2023) 2059397 02/22/23 18436 HAZEN AND SAWYER DPC 200940074A 01/25/23 WATER FACILITIES MASTER PLAN (JAN 2023)16,335.00 200940075A 02/27/23 WATER FACILITIES MASTER PLAN (JAN 2023)9,262.50 2059544 03/22/23 18436 HAZEN AND SAWYER DPC 2009400615 02/22/23 873663 03/01/23 AS-NEEDED SODIUM HYPOCHLORITE FY23 294.48 872641 02/22/23 AS-NEEDED SODIUM HYPOCHLORITE FY23 194.18 AS-NEEDED SODIUM HYPOCHLORITE FY23 1,653.76 872899 02/23/23 AS-NEEDED SODIUM HYPOCHLORITE FY23 981.59 2059543 03/22/23 19978 HASA INC.873664 03/02/23 870371 02/02/23 AS-NEEDED SODIUM HYPOCHLORITE FY23 354.23 869267 01/25/23 AS-NEEDED SODIUM HYPOCHLORITE FY23 160.04 869566 01/26/23 AS-NEEDED SODIUM HYPOCHLORITE FY23 870.63 870372 02/02/23 AS-NEEDED SODIUM HYPOCHLORITE FY23 369.16 AS-NEEDED SODIUM HYPOCHLORITE FY23 2,321.67 870369 02/01/23 AS-NEEDED SODIUM HYPOCHLORITE FY23 887.70 2059396 02/22/23 19978 HASA INC.870374 02/02/23 871023 02/08/23 AS-NEEDED SODIUM HYPOCHLORITE FY23 381.97 872057 02/15/23 AS-NEEDED SODIUM HYPOCHLORITE FY23 371.30 46.56 46.56 2059470 03/08/23 19978 HASA INC.871273 02/09/23 AS-NEEDED SODIUM HYPOCHLORITE FY23 650.84 2059496 03/15/23 21768 HANNAH SPOLIDORO Ref002687812 03/13/23 UB Refund Cst #0000277503 11,035.75 21,943.40 21,632.40 2,772.74 1,544.65 300.00 300.00 2059552 03/22/23 21784 MARTEN TRANSPORT LTD 3400032123 03/21/23 CUSTOMER REFUND 1,544.65 RW PIPELINE CATHODIC IMPROVE (DEC 2022)11,400.00 11,400.00 2059423 03/01/23 21748 MARGARITA ESCOLAR Ref002687612 02/27/23 UB Refund Cst #0000031022 2059515 03/15/23 18905 M RAE ENGINEERING INC 112312022 02/23/23 1,614.11 2059514 03/15/23 21767 LENNAR Ref002687811 03/13/23 UB Refund Cst #0000276006 1,436.64 1,436.64 13.30 13.30 2059513 03/15/23 21766 LENNAR Ref002687810 03/13/23 UB Refund Cst #0000275349 1,614.11 AS-NEEDED EMERGENCY PAVING FY23 7,579.48 7,579.48 2059497 03/15/23 21762 LARRY WYER Ref002687805 03/13/23 UB Refund Cst #0000002268 2059551 03/22/23 05840 KIRK PAVING INC 22-172-8 02/23/23 22-115-10R 01/09/23 RETAINAGE RELEASE 189.84 22-115-11R 01/13/23 RETAINAGE RELEASE 157.89 22-115-9R 12/21/22 RETAINAGE RELEASE 244.90 22-115-7R 11/08/22 RETAINAGE RELEASE 227.13 1,345.69 22-115-13R 01/20/23 RETAINAGE RELEASE 339.80 22-115-12R 01/19/23 RETAINAGE RELEASE 267.49 AS-NEEDED EMERGENCY PAVING FY23 34,434.08 34,434.08 2059443 03/01/23 05840 KIRK PAVING INC 22-115-8R 12/16/22 RETAINAGE RELEASE 22-115-14 02/10/23 AS-NEEDED PAVING SERVICES FY23 3,862.03 2059401 02/22/23 05840 KIRK PAVING INC 22-172-7 01/27/23 AS-NEEDED PAVING SERVICES FY23 9,086.18 22-115-16 02/16/23 AS-NEEDED PAVING SERVICES FY23 8,684.19 2059473 03/08/23 05840 KIRK PAVING INC 22-115-15 02/10/23 180.00 2059442 03/01/23 17353 KIM SAGE 0305022823 02/28/23 CUSTOMER REFUND 75.96 75.96 3,042.41 3,042.41 2059550 03/22/23 10089 KENNEDY, ROBERT 020823 03/20/23 EXPENSE REIMBURSEMENT 180.00 AS-NEEDED CHLORINE GAS FY23 4,033.73 4,033.73 2059400 02/22/23 10563 JCI JONES CHEMICALS INC 905948 01/31/23 AS-NEEDED CHLORINE GAS FY23 231710 03/01/23 BILL PROCESSING SERVICES FY23 2,790.39 2059549 03/22/23 10563 JCI JONES CHEMICALS INC 908298 03/07/23 BILL PROCESSING SERVICES FY23 14,471.59 231377 02/28/23 BILL PROCESSING SERVICES FY23 4,681.42 229507 01/31/23 BILL PROCESSING SERVICES FY23 1,500.43 2059548 03/22/23 08969 INFOSEND INC 231378 02/28/23 229974 02/01/23 BILL PROCESSING SERVICES FY23 2,751.85 230018 02/02/23 BILL PROCESSING SERVICES FY23 1,823.87 2,115.00 2,115.00 2059399 02/22/23 08969 INFOSEND INC 229508 01/31/23 BILL PROCESSING SERVICES FY23 4,959.60 UB Refund Cst #0000009490 100.48 100.48 2059472 03/08/23 13349 HUNSAKER & ASSOCIATES 2023010013 02/15/23 LAND SURVEYING SERVICES (JAN 2023) 2059512 03/15/23 21326 HUGHIE LYONS Ref002664885 06/06/22 363.66 13,370.00 38,395.07 2,725.90 2,374.98 PETTY CASH REIMBURSEMENT 1,893.49 1,893.49 03/13/23 UB Refund Cst #0000284785 1,306.21 1,306.21 2059519 03/15/23 00137 PETTY CASH CUSTODIAN 031323 03/13/23 1,259.64 25001-4 02/23/23 FIRE PATROL SERVICES 1,115.34 2059518 03/15/23 21769 PES ELECTRIC Ref002687813 TOWEL LAUNDRY SERVICE FY23 212.70 212.70 2059477 03/08/23 19916 PATRIOT GENERAL ENGINEERING 25001-3 02/23/23 FIRE PATROL SERVICES 2059476 03/08/23 19310 PALM LAUNDRY INC 256 03/01/23 INVENTORY 1,448.16 S100448988.001 02/24/23 INVENTORY 1,277.74 2059556 03/22/23 01002 PACIFIC PIPELINE SUPPLY INC S100449195.001 03/01/23 S100444895.001 02/08/23 INVENTORY 1,131.38 S100448241.001 02/15/23 HUNTE PRKWY ANODES 94.82 25,730.70 S100448443.001 02/08/23 INVENTORY 9,875.06 S100445274.002 02/08/23 INVENTORY 1,563.11 UB Refund Cst #0000188987 1,061.40 1,061.40 2059475 03/08/23 01002 PACIFIC PIPELINE SUPPLY INC S100448241.002 02/15/23 HUNTE PRKWY ANODES 2059517 03/15/23 21763 OTAY RANCH II SUN 5 LLC 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23030503 03/05/23 SMA HABITAT MANAGEMENT (JAN 2023)4,559.98 ADMINISTRATION LANDSCAPE UPDATE 24,225.00 24,225.00 2059403 02/22/23 01824 MERKEL & ASSOCIATES INC 23012603 01/26/23 SMA HABITAT MANAGEMENT (DEC 2022) 2059553 03/22/23 21723 MERINO LANDSCAPE INC 1 02/28/23 3G XTR ENCODER W/NICOR CONNECT 242.44 255912 02/09/23 3G XTR ENCODER W/NICOR CONNECT 121.22 2059474 03/08/23 05329 MASTER METER INC 255913 02/09/23 2059402 02/22/23 05329 MASTER METER INC 254992 01/15/23 HARMONY MOBILE SOFTWARE SUPPORT 5,250.00 5,250.00 6,432.50 268.83 78.47 135,968.90 122,819.34 31,461.13 30,362.01 031323 03/13/23 UTILITY EXPENSES (MONTHLY)1,099.12 UTILITY EXPENSES (MONTHLY)111,965.29 111,965.29 2059558 03/22/23 00121 SAN DIEGO GAS & ELECTRIC 030923 03/09/23 UTILITY EXPENSES (MONTHLY) 030723 03/07/23 UTILITY EXPENSES (MONTHLY)37.57 2059447 03/01/23 00121 SAN DIEGO GAS & ELECTRIC 022323 02/23/23 UTILITY EXPENSES (MONTHLY)99,506.49 030823 03/08/23 UTILITY EXPENSES (MONTHLY)23,275.28 022723 02/27/23 UTILITY 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VEEAM BACKUP FOR MS OFFICE 365 25,758.08 2,445.00 4,830.00 4,830.00 927 PUMP INSPECTION 6,350.00 6,350.00 2059564 03/22/23 21737 TRINITY ALTERNATIVE POWER 1265 02/27/23 ANNUAL ATS INSPECTIONS 2059563 03/22/23 17967 TRI COUNTY PUMP COMPANY 18090 03/06/23 286453-3 02/15/23 TRAFFIC PLATES RENTALS 260.00 275275A-3 10/25/22 TRAFFIC PLATES RENTALS 52.80 TRAFFIC PLATES RENTALS 1,585.20 274677A-3 10/25/22 TRAFFIC PLATES RENTALS 547.00 2059488 03/08/23 19536 TREBOR SHORING RENTALS 287128-3 02/27/23 3,000.00 2059414 02/22/23 14641 TREBOR SHORING RENTALS 274677-3 10/05/22 TRAFFIC PLATE RENTALS 719.40 719.40 3,000.00 3,000.00 2059562 03/22/23 20755 TOTAL COMPENSATION SYSTEMS INC 11582 03/20/23 ACTUARIAL SERVICES 3,000.00 MANAGEMENT TRAINING (SPRING 2023)875.00 875.00 2059487 03/08/23 20755 TOTAL COMPENSATION SYSTEMS INC 11494 02/27/23 ACTUARIAL SERVICES 2059486 03/08/23 03236 THE CENTRE FOR ORGANIZATION TCFOE4056 02/08/23 3,021.42 2059527 03/15/23 21774 TERRA DEVELOPMENT INC 3600031423 03/14/23 CUSTOMER REFUND 2,058.83 2,058.83 1,600.00 1,600.00 2059526 03/15/23 21394 TEEDEEUAS LLC Otay 04 03/05/23 UAS PROGRAM SERVICES 3,021.42 COMMUNICATIONS CONSULT SVCS (JAN 2023)2,000.00 2,000.00 2059561 03/22/23 18376 SVPR COMMUNICATIONS LLC 1589 02/28/23 COMMUNICATIONS CONSULT SVCS (FEB 2023) 2059413 02/22/23 18376 SVPR COMMUNICATIONS LLC 1583 01/31/23 UNLEADED & DIESEL FUEL 16,254.55 423782 02/23/23 UNLEADED & DIESEL FUEL 9,503.53 2059560 03/22/23 10339 SUPREME OIL COMPANY 423655 02/23/23 60.00 2059452 03/01/23 15974 SUN LIFE FINANCIAL 38166020123 02/01/23 LIFE INSURANCE AND STD/LTD (FEB 2023)11,476.84 11,476.84 139,247.50 139,247.50 2059485 03/08/23 05755 STATE WATER RESOURCES 30119021323JC 02/13/23 T2 CERTIFICATION RENEWAL 60.00 MANHOLE RING AND COVERS 2,963.13 2,963.13 2059412 02/22/23 01460 STATE WATER RESOURCES LW1040227 12/21/22 WATER SYSTEM FEES (07/01/2022-06/30/2023) 2059451 03/01/23 16922 SOUTH BAY FOUNDRY INC 0226769 02/27/23 553.85 2059450 03/01/23 21115 SONIA RIVAS 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1665991667251 01/31/23 ENGINEERING DESIGN SERVICES (JAN 2023) 2059494 03/08/23 19866 WOOD RODGERS INC 166676 01/31/23 61173 02/16/23 AS-NEEDED BEE REMOVAL FY23 125.00 61869 02/16/23 AS-NEEDED BEE REMOVAL FY23 125.00 125.00 2059493 03/08/23 01343 WE GOT YA PEST CONTROL INC 61140 02/10/23 AS-NEEDED BEE REMOVAL FY23 125.00 1,756.25 1,756.25 2059419 02/22/23 01343 WE GOT YA PEST CONTROL INC 61134 02/07/23 AS-NEEDED BEE REMOVAL FY23 125.00 HYDRAULIC MODELING (FEB 2023)1,048.75 1,048.75 2059418 02/22/23 15726 WATER SYSTEMS CONSULTING INC 7582 01/31/23 HYDRAULIC MODELING (JAN 2023) 2059570 03/22/23 15726 WATER SYSTEMS CONSULTING INC 7679 02/28/23 ALARM & ACCESS INSPECT AND MAINT 2,080.62 793837 02/09/23 ALARM & ACCESS INSPECT AND MAINT 517.66 02/15/23 SECURITY ALARM MONITORING FY23 2,576.92 2,576.92 2059569 03/22/23 15807 WATCHLIGHT CORPORATION 793836 02/09/23 4,942.50 S122454015.002 02/20/23 SOFT STARTERS 680 REC PS 4,942.50 2059528 03/15/23 15807 WATCHLIGHT CORPORATION 795024 WATER INTERNS (D CAMPOS 1/30-2/5)404.75 404.75 2059492 03/08/23 07595 WALTERS WHOLESALE ELECTRIC CO S122454015.001 02/14/23 SOFT STARTERS 680 REC PS 2059417 02/22/23 20909 VOLT WORKFORCE SOLUTIONS 45751903 02/14/23 1,485.00 2059454 03/01/23 21757 VILLAGE OF ESCAYA APTS LLC Ref002687622 02/27/23 UB Refund Cst #0000276556 86.75 86.75 12,838.00 12,838.00 2059491 03/08/23 08028 VALLEY CONSTRUCTION MANAGEMENT SD9237706 02/08/23 CMIS (JAN 2023)1,485.00 INVENTORY (VALVE GATE 10")17,164.96 17,164.96 2059568 03/22/23 18517 UTILITY SERVICES ASSOC LLC 126576 03/01/23 LEAK DETECTION SERVICES FY23 01494927 03/07/23 PORT. TOILET RENTAL FY23 146.47 2059490 03/08/23 03352 UNITED WATER WORKS INC S100112525.001 02/20/23 733.47 733.47 2059567 03/22/23 15675 UNITED SITE SERVICES INC 01496464 03/07/23 PORT. TOILET RENTAL FY23 733.47 INT/EXT COATING & UPGRADES (JAN 2023)40,661.90 40,661.90 2059453 03/01/23 15675 UNITED SITE SERVICES INC 01418587 02/07/23 PORT. TOILET RENTAL FY23 2059416 02/22/23 20409 UNIFIED FIELD SERVICES CORP 01312023 02/01/23 UNDERGROUND ALERTS (MONTHLY)801.00 222303080 03/01/23 DIG SAFE BOARD FEES (MONTHLY)239.82 2059566 03/22/23 00427 UNDERGROUND SERVICE ALERT 220230498 03/01/23 UNDERGROUND ALERTS (MONTHLY)816.75 222302687 02/01/23 DIG SAFE BOARD FEES (MONTHLY)239.82 2059415 02/22/23 00427 UNDERGROUND SERVICE ALERT 120230509 02/01/23 5,566.57 2059565 03/22/23 20837 UGSI CHEMICAL FEED INC 0027101 02/23/23 ENCORE 700 PUMP PARTS 845.61 845.61 2059489 03/08/23 20837 UGSI CHEMICAL FEED INC 0026939 02/14/23 ENCORE 700 PUMP PARTS 5,566.57 29,212.50 194 Checks 10,732.36 10,732.36 Amount Pd Total:1,679,665.74 Check Grand Total:1,679,665.74 EMPLOYEE BENEFITS FY23 855.00 855.00 2059495 03/08/23 14857 XYLEM/YSI INCORPORATED 992048 02/16/23 NITRATE ELECTRODES 167791 02/28/23 HYDRAULIC MODELING (FEB 2023)1,250.00 2059529 03/15/23 08023 WORKTERRA 0105067 02/27/23 2059571 03/22/23 19866 WOOD RODGERS INC 1677301678721 02/28/23 ENGINEERING DESIGN SERVICES (FEB 2023)27,962.50