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Home My WebLink About03-01-23 Board Packet1 OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY BOARD OF DIRECTORS MEETING 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA WEDNESDAY March 1, 2023 3:30 P.M. AGENDA 1. ROLL CALL a) BOARD ACTION TO APPROVE REMOTE ATTENDANCE 2. PLEDGE OF ALLEGIANCE 3. APPROVAL OF AGENDA 4. APPROVAL OF THE MINUTES FROM THE REGULAR BOARD MEETING OF JANUARY 4, 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 Additionally, members of the public may submit their comments on agendized and non-agendized items by either of the following two methods: a) If you wish to provide public comment directly - that is, live during the “Public Participation” portion of the meeting - please complete and submit a Request to Speak Form before the start of the meeting. Call-in instructions will be sent to the email provided on the form. Your request to speak will be acknowledged during the “Public Participation” portion of the meeting when the Board will hear your comment. When called to speak, please state your Name and the City in which you reside. You will be provided three minutes to speak. The Board is not permitted to enter into a dialogue with the speaker during this time. OR 2 b) If you wish to have your comment read to the Board during the “Public Par- ticipation” portion of the meeting, please email your comment to BoardSecre- tary@otaywater.gov at least thirty minutes prior to the start of the meeting, and it will be read aloud during the “Public Participation” portion of the meet- ing. Please provide your Name and the City in which you reside, with your comment. Your comment must not take more than three minutes to read. The Board is not permitted to respond to written public comment during this time. 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/ CONSENT CALENDAR 6. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PARTICULAR ITEM: a) AUTHORIZE THE GENERAL MANAGER TO EXECUTE A REIMBURSE- MENT AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND THE DISTRICT FOR THE 624/340 PRESSURE REDUCING STATION AND 16- INCH PIPELINE FOR THE HERITAGE ROAD BRIDGE REPLACEMENT PROJECT (CIPS P2405 & P2553) b) ADOPT RESOLUTION NO. 4423 FOR THE RACHEL VARGAS SEWER ANNEXATION, 1939 VEREDA COURT, EL CAJON, CA 92019, APN: 517- 111-53-00 TO THE OTAY WATER DISTRICT SEWER IMPROVEMENT DISTRICT NO. 18 (ANX-22-004) c) ADOPT RESOLUTION NO. 4422 TO DESIGNATE DISTRICT STAFF AS AUTHORIZED AGENTS TO CAL OES ACTION ITEMS 7. BOARD a) DISCUSS THE 2023 BOARD MEETING CALENDAR (RAMOS-KROGMAN) 8. ENGINEERING a) APPROVE WATER SUPPLY ASSESSMENT REPORT AND VERIFICATION (WSA&V REPORT) DATED FEBRUARY 2023 FOR THE CITY OF CHULA VISTA OTAY RANCH TOWN CENTER REDEVELOPMENT PROJECT AS REQUIRED BY SENATE BILLS 610 AND 221 (D1152-090587) (COBURN- BOYD) 3 INFORMATIONAL ITEMS 9. THE FOLLOWING ITEMS ARE PROVIDED TO THE BOARD FOR INFORMA- TIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEMS: a) SECOND QUARTER FISCAL YEAR 2023 CAPITAL IMPROVEMENT PRO- GRAM REPORT (CAMERON) b) FISCAL YEAR 2023 MID-YEAR STRATEGIC PLAN UPDATE (KERR) REPORTS 10. GENERAL MANAGER’S REPORT 11. SAN DIEGO COUNTY WATER AUTHORITY UPDATE 12. DIRECTORS' REPORTS/REQUESTS 13. PRESIDENT’S REPORT/REQUESTS RECESS TO CLOSED SESSION 14. CLOSED SESSION a) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION [GOVERNMENT CODE §54956.9] ONE MATTER: NAME OF CLAIMANT: FOOTHILLS UNITED METHODIST CHURCH b) CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to Cal- ifornia Government Code §54956.8 Property: SALT CREEK GOLF COURSE 525 HUNTE PARKWAY CHULA VISTA, CA 91914 Agency negotiator: General Counsel Under negotiation: Disposition of Property c) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOV- ERNMENT CODE §54956.9] OTAY WATER DISTRICT vs. CITY OF SAN DIEGO; CASE NO. 37-2017- 00019348-CU-WM-CTL 4 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. Certification of Posting I certify that on February 24, 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 be- ing at least 72 hours in advance of the regular meeting of the Board of Directors (Gov- ernment Code Section §54954.2). Executed at Spring Valley, California on February 24, 2023. /s/ Tita Ramos-Krogman, District Secretary 1 MINUTES OF THE BOARD OF DIRECTORS MEETING OF THE OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY January 4, 2023 1.The meeting was called to order by President Smith at 3:30 p.m. 2.ROLL CALL Directors Present:Croucher, Keyes, Lopez, Robak and Smith Directors Remote:None Staff Present:General Manager Jose Martinez, General Counsel Dan Shinoff attended by Remote, Chief Financial Officer Joe Beachem, Chief of Operations Andrew Jackson, Chief of Engineering Michael Long, Chief of Administration Adolfo Segura, Asst. Chief of Finance Kevin Koeppen, District Secretary Tita Ramos- Krogman and others per attached list. 3.PLEDGE OF ALLEGIANCE 4.PRESENTATION OF RECOGNITION PLAQUE TO BOARD PRESIDENT Vice President Robak presented a recognition plaque on behalf of the Board of Directors and staff to President Smith in recognition of his service to the District as President of the Board in 2022. 5.ELECTION OF BOARD PRESIDENT A motion was made by President Smith, seconded by Director Keyes and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez, Robak and Smith Noes: None Abstain: None Absent: None to elect Director Mark Robak as President. 6.ELECTION OF VICE PRESIDENT A motion was made by President Smith, seconded by Director Keyes and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez, Robak and Smith Agenda Item 4 2 Noes: None Abstain: None Absent: None to elect Director Jose Lopez as Vice President. 7. ELECTION OF BOARD TREASURER A motion was made by President Smith, seconded by Director Keyes and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez, Robak and Smith Noes: None Abstain: None Absent: None to elect Director Ryan Keyes as Treasurer. 8. 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. 9. APPROVAL OF THE MINUTES OF THE REGULAR MEETINGS OF OCTOBER 5, 2022 AND NOVEMBER 2, 2022, AND SPECIAL MEETING OF DECEMBER 7, 2022 A motion was made by Director Keyes, seconded by Director Smith and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez, Robak and Smith Noes: None Abstain: None Absent: None to approve the minutes of the regular meetings of October 5, 2022 and November 2, 2022, and special meeting of December 7, 2022. 10. 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 No one wished to be heard. 3 11. RECESS OTAY WATER DISTRICT BOARD MEETING AND CONVENE THE OTAY WATER DISTRICT FINANCING AUTHORITY BOARD MEETING President Robak recessed the Otay Water District board meeting at 3:45 p.m. and convened the Otay Water District Financing Authority board meeting. 12. ROLL CALL Directors Present: Croucher, Keyes, Lopez, Robak and Smith 13. RE-AFFIRM OFFICERS OF THE OTAY WATER DISTRICT FINANCING AUTHORITY A motion was made by President Robak, seconded by Director Keyes and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez, Robak and Smith Noes: None Abstain: None Absent: None to elect Director Robak as President, Director Lopez as Vice President, General Manager Martinez as Executive Director, Chief Financial Officer Joe Beachem as Treasurer/Auditor, and District Secretary Tita Ramos-Krogman as Secretary to the Otay Water District Financing Authority. 14. ADJOURN OTAY WATER DISTRICT FINANCING AUTHORITY BOARD MEETING AND RECONVENE THE OTAY WATER DISTRICT BOARD MEETING President Robak adjourned the Otay Water District Financing Authority board meeting at 3:47 p.m. and reconvened the Otay Water District board meeting. CONSENT ITEMS 15. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PARTICULAR ITEM: a) AWARD TWO (2) PROFESSIONAL AS-NEEDED LAND SURVEYING SERVICES CONTRACTS WITH HUNSAKER & ASSOCIATES AND PARADIGM GEOSPATIAL, EACH AGREEMENT IN AN AMOUNT NOT-TO- EXCEED $190,000. THE TOTAL AMOUNT OF THE TWO CONTRACTS WILL NOT EXCEED $190,000 DURING FISCAL YEARS 2023, 2024, AND 2025 (ENDING JUNE 30, 2025) b) AWARD A CONSTRUCTION CONTRACT TO BURTECH PIPELINE, INC. FOR THE CONSTRUCTION OF THE OLYMPIC PARKWAY RECYCLED WATER PIPELINE REPLACEMENT PROJECT IN AN AMOUNT NOT-TO-EXCEED $3,945,035 4 c) APPROVAL TO INCREASE THE CIP p2677 BUDGET BY $800,000 (FROM $1,800,000 TO $2,600,000) FOR THE LA MEDIA/AIRWAY ROAD WATER LINE RELOCATION PROJECT d) APPROVAL TO INCREASE THE CIP P2682 BUDGET BY $350,000 (FROM $300,000 TO $650,000) AND AWARD A CONSTRUCTION CONTRACT TO OT ELECTRICAL FOR THE ADVANCED METERING INFRASTRUCTURE PROJECT IN AN AMOUNT NOT-TO-EXCEED $495,650.00 e) APPROVE THE ADOPTION OF A MITIGATED NEGATIVE DECLARATION FOR THE TRESTLE BRIDGE DEMOLITION PROJECT A motion was made by Director Smith, seconded by Director Keyes and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez, Robak and Smith Noes: None Abstain: None Absent: None to approve staff’s recommendation. ACTION ITEMS 16. BOARD a) DISCUSS THE 2023 BOARD MEETING CALENDAR There were no changes to the board meeting calendar. INFORMATIONAL ITEMS 17. THE FOLLOWING ITEMS ARE PROVIDED TO THE BOARD FOR INFORMATION PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEMS: a) FIRST QUARTER FISCAL YEAR 2023 CAPITAL IMPROVEMENT PROGRAM REPORT Engineering Manager Michael Long provided a PowerPoint presentation to the board. He responded to comments and questions from the board. b) DISTRICT’S CONFINED SPACE RESCUE/HAZWOPER TEAM Reclamation Plant Supervisor Damon Newman provided a PowerPoint Presentation to the board. In response to a question from Director Croucher, Mr. Newman stated that the District has conducted joint exercises with CalFire and the Helix Water District in the past. System Operations Manager Jake Vaclavek responded to additional questions from the board. 5 18. GENERAL MANAGER’S REPORT General Manager Martinez presented information from his report that included an update on the District’s new hires, promotions and recruitments. He indicated that Mr. Kevin Cameron was promoted to the Public Services Manager position. Other updates included the District’s Utility Billing Solution, and Digital Government Summit’s Best of California Award. Mr. Martinez noted that on November 1, 2022, the flowmeter at the Tijuana Connection was placed online to monitor the flow and accumulate the volume for the water delivery to Tijuana. 19. SAN DIEGO COUNTY WATER AUTHORITY UPDATE Director Smith encouraged board members to attend CWA board meetings and provided an update of the Carlsbad Desalination Plant. He also indicated that the number of years to serve on the MWD Board changed from a four-year term to a two- year term. Director Croucher provided an update on the proposed Rainbow-Fallbrook Detachment from San Diego County, Lake Hodges project, changes to the Colorado River Board, and his meeting with Imperial Irrigation District staff. 20. DIRECTORS’ REPORTS/REQUESTS Director Smith reported that he attended an 870-2 Pump Station Tour on December 7, 2022 and recommended that staff provide other facility tours in the future. Written reports from Directors Croucher, Keyes, Robak and Smith were submitted to District Secretary Ramos-Krogman, which will be attached to the minutes for today’s meeting. 21. PRESIDENT’S REPORT/REQUESTS President Robak indicated that Director Smith will be leading MWD tours in 2023 and encouraged board members and staff to reach out to him if they would like to attend the tours. President Robak also encouraged board members to share their interest on board assignments that they would like to be assigned to. Director Croucher recommended to invite the Imperial Irrigation District board members to one of Otay Water District’s board meeting. President Robak indicated that he provided his report to District Secretary Tita Ramos- Krogman which will be attached to the minutes of this meeting. 22. CLOSED SESSION The board recessed to closed session at 5:11pm to discuss the following matters: a) DISCUSSION RELATING TO CORONAVIRUS (COVID-19) AND PUBLIC SERVICES [GOVERNMENT CODE §54957] 6 b)CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to California Government Code §54956.8 Property: SALT CREEK GOLF COURSE 525 HUNTE PARWAY CHULAVISTA, CA 91914 Agency negotiator: General Counsel Under negotiation: Disposition of Property c)CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOVERNMENT CODE §54956.9] OTAY WATER DISTRICT vs. CITY OF SAN DIEGO; CASE NO. 37-2017- 00019348-CU-WM-CTL RETURN TO OPEN SESSION 23.REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION. The board reconvened from closed session at 6:06pm and General Counsel Dan Shinoff reported that there were no reportable actions in closed session. OTAY WATER DISTRICT FINANCING AUTHORITY 24.NO MATTERS TO DISCUSS 25.ADJOURNMENT With no further business to come before the Board, President Robak adjourned the meeting at 6:06 p.m. ___________________________________ President ATTEST: District Secretary Pay To: Mark Robak OTA Y WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Employee Number 7014 From: ITEM DATE 1 12/1/2022 2 12/5/2023 3 12/6/2022 4 12/7/2022 5 12/10/2022 6 12/13/2022 7 12/16/2022 8 12/19/2022 9 12/21/2022 Total Meeting Per Diem: ($158 PER MEETING) Total Mileage Claimed: GM Receipt: MEETING PURPOSE I ISSUES ACW A Fall Conference Conference of California water agencies Otay Water District District Facility Tour & Legal Matters East County Chamber of Government Affairs & Infrastructure Committee Commerce Olay Mesa Chamber Holiday Updates on business issues in area -NOBreakfast CHARGE Otay Water District Holiday Party -NO CHARGE City of Chula Vista Installation of new Mayor and Council Inauguration LAFCO Special District Discussion of regional efficiency matters Advisory Board Ad Hoc Salt Creek Golf Discussion of disposition of property Course Committee East County EDC Monthly Discussion of regional economic matters Meeting $ 1,106 Director Signature �289Miles Date: __,l!t_.__/4_D�l-3,_ rt FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ ____ _ Period Covered 12/1/2022 12/31/2022 MILEAGE HOME MILEAGE TOOWDOWDTO OTHER HOME LOCATIONS 0 165 7 0 0 0 0 0 0 0 0 33 0 84 0 0 0 0 7 282 Pay To: Ryan Keyes OT A Y WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Period Covered: Employee Number: 1896 12-1-22 To: 12-31-22ITEM I 2 3 4 DATE MEETING 12-2-22 ACWA Fall Conference Day 3 12-5-22 EO&WR Committee Meeting 12-7-22 Special Board Meeting 12-11-22 CSDA Course Total Meeting Per Diem: ($158 per meeting) $632 Total Mileage Claimed: 0 PURPOSE / ISSUES MILEAGE DISCUSSED HOMEtoOWD OWDtoHOME ACWA Fall Conference-seminars & - exhibits Monthly Committee Meeting - 870 Pump Station Tour - Tools for Managing Disaster Response & -Recovery - - Miles Date: 1/z.h,,··q I I FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ _____ _ INSTRUCTIONS ON REVERSE MILEAGE OTHER LOCATIONS - - - - - Pay To: Jose Lopez OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Period Covered: Employee Number: 7010 10/1/22 To: 10/31/22 ITEM DATE MEETING PURPOSE / ISSUES MILEAGE I 2 3 4 5 6 7 8 9 IO 10/05/22 Otay Water District Meeting 10/11/22 Ad Hoc Legal Services Committee I 0/17/22 CPRL&L Committee Mtg. I 0/19/22 Finance & Adm in Committee Meeting 10/23/22 San Diego Regional Chamber of Commerce 10/24/22 San Diego Regional Chamber of Commerce 10/25/22 San Diego Regional Chamber of Commerce 10/26/22 San Diego Regional Chamber of Commerce Total Meeting Per Diem: ($158 per diem) $1,264 Total Mileage Claimed: 57 DISCUSSED HOMEtoOWD OWDtoHOME Monthly Regular Board Meeting 19 Discuss legal service matters from ArtianoShinoff Review and discuss agenda items going to 19 the November 2022 board meeting. Review agenda items going to the 19 November 2022 board meeting 2022 Binational Delegation to Mexico City 2022 Binational Delegation to Mexico City 2022 Binational Delegation to Mexico City 2022 Binational Delegation to Mexico City miles GM Receipt:---_ _ (Director's Signature) Date: t !tz.lzoz3, r, FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ _____ _ MILEAGE OTHER LOCATIONS Pay To: Jose Lopez OT A Y WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Period Covered: Employee Number: 7010 11/1/22 To: 11/30/22 ITEM I 2 3 4 5 DATE MEETING 11/01/22 South County EDC 11/02/22 Otay Water District Meeting 11/15/22 San Diego Chamber of Commerce 11/17/22 California Special Districts Association 11/22/22 Quarterly Directors Meeting Total Meeting Per Diem: ($158 per diem) Total Mileage Claimed: $790 105 PURPOSE / ISSUES MILEAGE MILEAGE DISCUSSED HOMEtoOWO OTHER OWOtoHOME LOCATIONS Monthly meeting 23 Monthly Regular Board Meeting 19 Installation of Directors 22 Monthly Special Districts Dinner Meeting 41 Met with GM Martinez to discuss district updates and matters miles (Director's Signature) GM Receipt: _-Date: _...:..,11-/i.:..;;12..c/-/_7_.!J'l,....:;....a'>'----r 1 FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ _____ _ OT A Y WATER DISTRICT BOARD OF DlRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To: Jose Lopez Period Covered: Employee Number: 7010 ITEM I 2 DATE MEETING 12/07/22 Otay Water District Special Board Meeting 12/10/22 Otay Water District Holiday Party Total Meeting Per Diem: ($158 per diem) Total Mileage Claimed: $158 19 12/1/22 To: 12/31/22 PURPOSE / ISSUES MILEAGE MILEAGE DISCUSSED HOMEtoOWD OTHER OWDtoHOME LOCATIONS Considered Closed Session item and 19 toured the 870-2 Pump Station Attended annual OWD Holiday Party (NO CHARGE) miles GM Receipt:- (Director's Signature) Date: __ I /4'""/_2+/4_-z_o_-z. .... J�--�, FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ _____ _ Employee Number: /�45 OT A Y WATER DISTRICT BOARD OF DIRECTORS EXPENSE CLAIM FORM Period Covered: ITEMIZED REIMBURSEMENT CLAIMED Date Type of Reimbursement ff /1 IP /l7-£""".,,..�Ccv.11M GivcvS -P-<-V'n./ .s C3 �--\<.-b.st- TOTAL Reimbursement Claimed: Director Signature: GM Receipt: INSTRUCTIONS ON REVERSE EXHIBIT D Amount � )Cf ,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: Tim Smith Period Covered: Employee Number: 1845 From: 12/01/22 To: 12/30/22 ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED (Via Teleconference) MILEAGE HOME to OWD OWD to HOME MILEAGE OTHER LOCATIONS 1 12/01/22 ACWA 2022 Fall Conference Attended the Association of California Water Agencies’ Annual Fall Conference - - 2 12/02/22 Agenda Committee Review Met with GM Martinez to discuss committee agenda items for the December 5, 2022, EO&WR Committee meeting - - 3 12/05/22 EO&WR Committee Meeting Monthly committee meeting to discuss/review agenda items going to the November committee meeting 26 - 4 12/07/22 Special Board Meeting Meeting with board members to tour the 870-2 Pump Station in Otay Mesa 26 - 5 12/13/22 CRWUA Annual Conference Attended the Colorado River Water Users Association Annual Conference - - 6 12/14/22 CRWUA Annual Conference Attended the Colorado River Water Users Association Annual Conference - - 7 12/15/22 CRWUA Annual Conference Attended the Colorado River Water Users Association Annual Conference - - 8 12/16/22 CRWUA Annual Conference Attended the Colorado River Water Users Association Annual Conference - - 9 12/17/22 CRWUA Annual Conference Attended the Colorado River Water Users Association Annual Conference (NO CHARGE) - - 10 12/19/22 Ad Hoc Salt Creek Golf Course Committee Meeting Met with Director Robak, GM Martinez, Legal Counsel and staff to discuss the Salt Creek Golf Course Lease and Property Disposition - - 11 12/29/22 Agenda Briefing Meeting Met with GM Martinez and Legal Counsel to discuss agenda items for the January 4, 2023, board meeting - - Total Meeting Per Diem: $1,580 ($158 per diem) Total Mileage Claimed: 52 miles STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 1, 2023 SUBMITTED BY: Kevin Cameron Engineering Manager PROJECT: P2405-001103 P2553-001103 DIV. NO.2 APPROVED BY: Bob Kennedy, Engineering Manager Michael Long, Chief, Engineering Jose Martinez, General Manager SUBJECT: Authorization to Execute a Reimbursement Agreement between the City of Chula Vista and the Otay Water District for the 624/340 Pressure Reducing Station and 16-inch Pipeline for the Heritage Road Bridge Replacement Project (CIP P2405 & P2553) GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) Authorize the General Manager to execute a Reimbursement Agreement (Agreement) between the City of Chula Vista (City) and the District for the 624/340 Pressure Reducing Station and 16-inch Pipeline for the Heritage Road Bridge Replacement Project (CIPs P2405 & P2553) (see Exhibit A for Project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: Authorize the General Manager to execute an Agreement (Exhibit B) with the City for costs associated with construction of the 624/340 Pressure Reducing Station and 16-inch Pipeline for the Heritage Road Bridge Replacement project. The Agreement provides that the District will deposit an amount to the City within thirty (30) calendar days of the City’s written confirmation of the Project cost after the opening of bids. It is expected the Project will be bid at the end of 2023 and by mid-2024 the City will request a deposit amount Agenda Item 6a 2 estimated to be about $2,940,000, to be adjusted to reflect actual bid results. Staff will bring this back to the Board if the deposit exceeds the CIP budget. ANALYSIS: The City is improving and widening Heritage Road between Main Street and Entertainment Circle in the south Chula Vista area near North Island Credit Union Amphitheatre (Amphitheatre). This portion of Heritage Road has a bridge crossing Otay River that will also be improved and expanded. The District currently serves two (2) large venues in the area south of Otay River; the Amphitheatre and Sesame Place San Diego waterpark (formally Aquatica). Both venues are currently served by a 16-inch pipeline that was installed in 1994 under Otay River. Repairing this pipeline in the future will be difficult with the current environmental restrictions and its location within sensitive habitat. Therefore, the District decided that the City’s bridge project would be a good opportunity to provide a redundant feed to the venues. In order to minimize impacts and coordination issues, District staff and the City are coordinating their efforts to combine the contract documents for water improvements and the bridge and road work into one bid package. The City will incorporate the District's water improvements into their bid package and bid their project with the District's as one project. It is anticipated the City will advertise the "Project" at the end of the calendar year and they want a reimbursement agreement in place with the District prior to this advertisement. The City will administer the Project with District staff providing assistance during bidding and construction activities as needed. District inspection personnel will perform oversight of the water line and pressure reducing station construction. Award of the Project is anticipated in mid-2024 with completion of construction expected by the end of 2027. The District’s scope of work includes installation of a pressure reducing station at the southeast corner of Heritage Road & Main Street intersection to serve the 340 pressure zone from the 624 pressure zone. The Project will also install approximately 900 linear feet of 16-inch pipeline, 1000 linear feet of 12-inch pipeline, and associated appurtenances in Heritage Road and through the new bridge. This will add a redundant feed to the two venues and will allow the District to eventually abandon the pipeline under Otay River as it reaches the end of its useful life. Installing the new 3 pipeline through the bridge during the bridge construction will ease the pipeline construction both in cost and duration. The construction cost associated with the water improvements is estimated at $2,800,000 plus a five (5) percent contingency of $140,000. The total construction estimate, to be administered through the City, is $2,940,000. This amount will be adjusted prior to the District’s payment to the City to reflect the actual bid amount. The attached Agreement (Exhibit B) provides for reimbursement to the City to cover the actual costs to install District facilities. With the exception of emergencies, prior to the approval of any construction change or change order affecting the District, the City will obtain the written consent of the District. The design of the District’s portion of the Project was completed by NV5. NV5 has successfully designed multiple pipeline bridge crossings, most recently for the District on the SR-11 Alta Road bridge and Enrico Fermi bridge. FISCAL IMPACT: Joseph Beachem, Chief Financial Officer The FY 2023 budget for CIP P2405 is $1,000,000. Total expenditures, plus outstanding commitments and forecast, including this agreement, are $904,066. See Attachment B-1 for budget detail. The FY 2023 budget for CIP P2553 is $5,050,000. Total expenditures, plus outstanding commitments and forecast, including this agreement, are $3,815,000. See Attachment B-2 for budget detail. Based on a review of the financial budget, the Project Manager anticipates that the budget for both CIP P2405 & P2553 are sufficient to support the Project. The Finance Department has determined that, under the current rate model, 100% of the funding is available from the Replacement Fund for both CIP P2405 & P2553. GRANTS/LOANS: Engineering staff researched and explored grants and loans and found none were available for this Project. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide exceptional water and wastewater service to its customers, and to manage District resources in a transparent and fiscally responsible 4 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: The District’s General Counsel and the City’s City Attorney have reviewed and accepted the agreement as to form and legality. KC/BK:jf C:\OneDrive\Otay Water District\ENG CIP - Documents\P2553 Heritage Road Bridge Pipeline Relocation\Staff Reports\BD 03-01-2023, Staff Report, P2553 Heritage Road Bridge Pipeline Relocation Reimbursement Agreement (KC-BK).docx Attachments: Attachment A – Committee Action Attachment B-1 – P2405 Budget Detail Attachment B-2 – P2553 Budget Detail Exhibit A – Location Map Exhibit B – Agreement ATTACHMENT A SUBJECT/PROJECT: P2405-001103 P2553-001103 Authorization to Execute a Reimbursement Agreement between the City of Chula Vista and the Otay Water District for the 624/340 Pressure Reducing Station and 16-inch Pipeline for the Heritage Road Bridge Replacement Project (CIP P2405 & P2553) COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on February 14, 2023 and the following comments were made: • Staff presented the request to authorize the General Manager to execute a reimbursement agreement with the City of Chula Vista for costs associated with construction of the 624/340 Pressure Reducing Station and 16-inch Pipeline for the Heritage Road Bridge Replacement project. • Staff noted that the City is expected to advertise the project at the end of this year. Award of the project and a request for the District’s payment is expected next June or July 2024. Construction is anticipated to end in December 2027. • Committee asked for an explanation of the current bridge. Staff responded that there is a short 100-foot bridge. The plan is to lengthen the bridge to 320 feet and widen it twice as much. This will help with the congestion for those going to a concert and also protecting the environmentally sensitive area. • Committee asked if there was recycled water in this area and staff responded that there is no recycled water at this time and there are no potential users south of the bridge. Upon completion of the discussion, the Committee supported staff’s recommendation to the full board on the consent calendar. ATTACHMENT B-1 – P2405 Budget Detail SUBJECT/PROJECT: P2405-001103 P2553-001103 Authorization to Execute a Reimbursement Agreement Between the City of Chula Vista and the Otay Water District for the 624/340 Pressure Reducing Station and 16-inch Pipeline for the Heritage Road Bridge Replacement Project (CIP P2405 & P2553) 1/26/2023 Budget 1,000,000 Planning Standard Salaries 20,000 15,992 4,008 20,000 Service Contracts - - - - Total Planning 20,000 15,992 4,008 20,000 Design Standard Salaries 35,000 7,865 27,135 35,000 Service Contracts 75,066 37,740 37,326 75,066 NV5 Total Design 110,066 45,605 64,461 110,066 Construction Standard Salaries 100,000 - 100,000 100,000 Construcion Contract 500,000 - 500,000 500,000 CONTRACTOR (ESTIMATE) 25,000 - 25,000 25,000 CITY 5% CONTINGENCY Service Contracts 50,000 - 50,000 50,000 SCADA PROGRAMMING20,000 - 20,000 20,000 AFTER HOURS INSPECTION 2,000 - 2,000 2,000 CLARKSON LABORATORYProject Closeout 2,000 - 2,000 2,000 CLOSEOUT Project Contingency 75,000 - 75,000 75,000 15% CONTINGENCY Total Construction 774,000 - 774,000 774,000 Grand Total 904,066 61,597 842,469 904,066 Vendor/Comments Otay Water District P2405 - 624/340 PRS MAIN ST & HERITAGE RD Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost ATTACHMENT B-2 – P2553 Budget Detail SUBJECT/PROJECT: P2405-001103 P2553-001103 Authorization to Execute a Reimbursement Agreement Between the City of Chula Vista and the Otay Water District for the 624/340 Pressure Reducing Station and 16-inch Pipeline for the Heritage Road Bridge Replacement Project (CIP P2405 & P2553) 1/26/2023 Budget 5,050,000 Planning Standard Salaries 30,000 27,773 2,227 30,000 Service Contracts - - - - Total Planning 30,000 27,773 2,227 30,000 Design Standard Salaries 140,000 115,480 24,520 140,000 Service Contracts 185,000 127,933 57,067 185,000 NV5 Total Design 325,000 243,413 81,587 325,000 ConstructionStandard Salaries 500,000 - 500,000 500,000 Construcion Contract 2,300,000 - 2,300,000 2,300,000 CONTRACTOR (ESTIMATE) 115,000 - 115,000 115,000 CITY 5% CONTINGENCY Service Contracts 50,000 - 50,000 50,000 SPECIALTY INSPECTION 10,000 - 10,000 10,000 COATING INSPECTION30,000 - 30,000 30,000 WELDING INSPECTION 100,000 - 100,000 100,000 AFTER HOURS INSPECTION5,000 - 5,000 5,000 CLARKSON LABORATORYProject Closeout 5,000 - 5,000 5,000 CLOSEOUT Project Contingency 345,000 - 345,000 345,000 15% CONTINGENCY Total Construction 3,460,000 - 3,460,000 3,460,000 Grand Total 3,815,000 271,186 3,543,814 3,815,000 Vendor/Comments Otay Water DistrictP2553- Heritage Road Bridge Replacement and Pipeline Installation Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost OTAY WATER DISTRICT 624/340 Pressure Reducing Station and 16-inch Pipelinefor the Heritage Road Bridge Replacement Project LOCATION MAPEXHIBIT AC:\OneDrive\Otay Water District\ENG CIP - Documents\P2682 AMI Pilot Project\Graphics\Exhibits-Figures\Exhibit A.mxd !! ! !!!!!!! ! ! ! ! !!!! ! ! ! ! ! ! ! !! ! ! ! !!!!! !!!!! !! !!!! ! ! ! ! ! ! ! !!!! ! ! ! ! ! ! ! !!! ! ! ! ! !!! !\ VICINITY MAP PROJECT SITE DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ÃÅ54 ÃÅ125 ÃÅ94 ÃÅ905 §¨¦805 FNTS NEW PRS CIP P2405 & P2555F 0 400200 Feet MAIN STREET H E R I T A G E R O A D OTAY RIVER ENTERTAINMENT CIR ENTERTAINMENT CIR NEW 16" PL REIMBURSEMENT AGREEMENT FOR COSTS RELATED TO THE INSTALLATION OF OTAY WATER DISTRICT FACILITIES BY AND BETWEEN OTAY WATER DISTRICT AND THE CITY OF CHULA VISTA, CALIFORNIA (HERITAGE ROAD BRIDGE REPLACEMENT) THIS REIMBURSEMENT AGREEMENT FOR COSTS RELATED TO THE INSTALLATION OF OTAY WATER DISTRICT FACILITIES ("Agreement"), dated _________________, 2023, is entered into by and between OTAY WATER DISTRICT ("District") a joint powers agency formed pursuant to Government Code Section 6500 et seq. and the City of Chula Vista, a chartered municipal corporation ("City") to establish terms and conditions pursuant to which City will bid and cause the installation of certain District Facilities, defined herein below, to be installed and District will reimburse the City for all expenses related thereto. District and the City may be referred to herein individually as "Party" and collectively as the "Parties." RECITALS WHEREAS, City will be constructing improvements to replace Heritage Road Bridge; such improvements include, but are not limited to, replace an existing 4-lane timber deck bridge with 450-foot long bridge with 6 through-lanes, 2 left-turn lanes, 2 shoulder/bike lanes, 2 sidewalks, railings and a median (the “Project”); and WHEREAS, District will approve and pay for the installation of its water facilities and appurtenances as a part of the above-described Project; and WHEREAS, the construction of District Facilities (as defined below), in conjunction with the construction of the City Improvements (as defined below), would be a substantial benefit to District and the City, which benefits include, but are not limited to, reductions or savings in terms of time and costs; and WHEREAS, in order to achieve such benefits, the District desires that City incorporate the construction and installation of District Facilities into the City’s bid and contract documents for City Improvements; and WHEREAS, City is willing to do so, provided District reviews and approves the design of the District Facilities and District agrees to reimburse City for the District Costs in strict accordance with the terms and conditions of this Agreement; and WHEREAS, District is authorized, pursuant to applicable laws, to contract and to pay for the installation and related services for the District Facilities or other improvements. NOW, THEREFORE, in consideration of the mutual covenants herein contained, it is agreed by and between the Parties hereto, as follows: EXHIBIT B ARTICLE I. DEFINITIONS 1.1 Definitions. Unless the context otherwise requires, the terms defined in this Section 1 shall, for all purposes of this Agreement and of any amendment hereto, and of any certificate, opinion, estimate or other document herein mentioned, have the meanings herein specified. "District" means Otay Water District, a joint powers agency formed pursuant to Government Code sec. 6500 et seq. as set forth in the California Water Code. "City" means the City of Chula Vista, California, a chartered municipal corporation duly organized and existing under and by virtue of the Constitution and laws of the State of California. "City Improvements" means, collectively, the construction to replace an existing 4-lane timber deck bridge with 450-foot long bridge with 6 through-lanes, 2 left-turn lanes, 2 shoulder/bike lanes, 2 sidewalks and a median, in accordance with the Contract Documents and Construction Agreement. "District Costs" means: (a) one hundred-percent (100%) of the dollar amount of any and all costs in any way associated with or related to the construction, installation, and inspection of the District Facilities, including, but not limited to, costs of materials, labor, oversight, bidding, permits, change orders; and (b) one hundred percent (100%) of the Pre-Construction Costs (as defined below). "District Facilities" means, collectively, the installation of new potable water facilities and related appurtenances and facilities as shown in Exhibit A hereto, as the same may be amended from time to time via change order or otherwise. "Project" means, collectively, the construction and installation of District Facilities, installation of other utilities owned by various other utility companies and City Improvements, as the same may be amended from time to time via change order or otherwise. “Project Contingency” means, an amount not to exceed five (5) percent of the total contract amount of District Facilities. ARTICLE II. PRE-CONSTRUCTlON 2.1 Design and Specifications. Prior to advertisement of the construction and installation of Project, an authorized representative of the District shall review and approve all designs and all associated plans and specifications (collectively "Construction Documents") for the District Facilities and such approval shall not be unreasonably withheld. District shall be solely responsible for review and approval of the Construction Documents for the District Facilities. District shall provide approved Construction Documents for the District Facilities by no later than twenty (20) working days after the same has been requested by the City for advertisement purposes. 2.1.1 Pre-construction Costs. All costs associated with the design of District Facilities and the preparation of Construction Documents, including but not limited to incorporating technical specs, bid sheet, conformed plans and specs, preparation of agreements, therefor (“Preconstruction Costs”) shall be borne by the District. After award of the Construction Agreement, the Preconstruction Costs shall be calculated proportionately in the same manner and to the same extent as the construction costs for the District Facilities pursuant to the Construction Agreement. The City shall submit an invoice to the District for its Preconstruction Costs and District will reimburse City for those costs by no later than thirty (30) calendar days after receipt of the invoice. 2.1.2 Bidding and Award. City shall bid and award of a contract for the construction and installation of the Project ("Construction Agreement"). 2.1.2.1 Bid Package. City shall prepare and circulate the bid package, provided that City will not be responsible for approving design or Construction Documents for any of the District Facilities. 2.1.2.2 Meetings. City shall organize all pre-bid meetings and shall inform the District of the time and date of such meetings, so that a representative of the District may be present to clarify any issues related to the design of and Construction Documents for the District Facilities and prepare addenda (as needed) for the construction of the District Facilities. Additional Costs. Any additional costs associated with the failure of District to attend meetings, clarify issues related to the design of the District Facilities or the Construction Documents for the District Facilities, or submit addenda to City related to the construction or installation of the District Facilities shall be the sole obligation of the District. 2.1.2.3 Selection of Lowest Responsive and Responsible Bidder. City shall determine the lowest responsible bidder and such determination shall be binding on the District. For purposes of the Agreement, the entity awarded a contract for the Project shall be referred to herein as the “Contractor”. 2.1.2.4 Execution of Construction Agreement. City shall execute the Construction Agreement on behalf of itself and ensure that the District is identified as a third-party beneficiary of such Construction Agreement. ARTICLE III. CONSTRUCTION 3.1 Compliance with Specifications. City will include provisions in the Construction Agreement that require that all District Facilities furnished, constructed, and installed by Contractor shall be in strict compliance with the Otay Water District Standard Specifications for Construction of Water Facilities provided by District, that all materials furnished by Contractor must conform to District's approved material list, and that any and all deviations from said specifications must be approved by the District, in writing, prior to being incorporated into the work. 3.2 The Buy America requirements are further specified in the Moving Ahead for Progress in the 21st Century (MAP-21), section 1518. 3.3 Project Completion and Warranty. District and City anticipate that the Project will be completed on or about November 2024. Project, however, will not be deemed completed or accepted until both City and District have accepted their respective facilities or improvements; provide that such acceptance shall not be unreasonably withheld. The City shall require the Construction Agreement to provide that Contractor shall warrant all work for a period of no less than one (1) year from the date of acceptance. Acceptance will be evidenced by the filing of a Notice of Completion by the City with the County of San Diego Recorder. 3.4 As-Builts. The District shall provide signed “As-Built” plans of the District Facilities to the City for its files. ARTICLE IV. REIMBURSEMENT OF COSTS 4.1 Deposit Account. Within thirty (30) calendar days of the Construction Agreement award, District shall deposit with the City an amount equal to one hundred percent (100%) percent of the bid amount attributable to the construction and installation of District Facilities, plus a five (5) percent contingency (“District Deposit”) for the purpose of reimbursing the City for progress payments made by City to Contractor for the installation of District Facilities. 4.2 Invoice. City shall invoice the District for District Costs ("City Invoice") following the receipt of an invoice from a consultant or the Contractor on which such District Costs appear. The City Invoice shall: 4.2.1 Include a copy of the consultant’s invoice or the Contractor's invoice. 4.2.2 Identify the District’s Costs. 4.2.3 Identify all other costs attributable to the District’s Facilities. 4.2.4 Provide a net total charge payable by District. 4.3 District Approval. District shall review and approve the City Invoice twenty (20) calendar days of its receipt ("Review Period"). If District determines that all relevant documents have not been submitted, District shall inform the City of the need for additional information and specify the documents/information necessary to permit review and approval. 4.3.1 Failure to Approve. If District fails to approve the City Invoice or request additional information within the Review Period, the charges on the City’s Invoice shall be deemed approved. 4.4 Reimbursement. Following District approval of a City Invoice, City shall deduct the invoice amount from the District Deposit for the purpose of reimbursing the City for District Costs invoiced by and paid to Contractor. District approval of a City Invoice shall be deemed District’s authorization for such reimbursement in the amount of the City Invoice. 4.4.1 Withholding/Retention. From each payment to the Contractor, City shall withhold a minimum of five (5%) percent of the amount of the Contractor's invoice. Payment thereof shall not be made until final approval and acceptance. A similar retention shall be withheld from the reimbursement to the City from the District Deposit. 4.5 Use of Project Contingency. The Project Contingency may be used for unforeseen circumstances or changes in the work; however, it shall not be used for: (i) work required due to Contractor's failure to perform work or services according to the terms of the Construction Agreement and/or in compliance with the Construction Documents; or (ii) uninsured losses resulting from the negligence of Contractor. Any accrued interest earnings from the original deposit may be used to offset the District’s additional Contingency contribution. ARTICLE V. CHANGE ORDERS 5.1 Written Approval Required. With the exception of Emergencies (defined in section 5.2 below), prior to the approval of a construction change or change order concerning affecting District Facilities, including any changes to City Improvements that might affect District Facilities in any way, City shall obtain the prior written consent of the District, and District shall not unreasonably withhold such written consent. 5.1.1 Approval of Change Orders. District shall respond to a change order request within five (5) working days of the date on which the construction change or change order request is received by District. If District fails to timely approve such change order request, such request shall be deemed approved. 5.1.2 Additional Costs. District will bear any increased costs due to an District delay in approving a properly submitted construction change and/or change order request. 5.2 Changes in Emergencies. City may authorize the Project contractor to proceed with any proposed construction changes and/or change orders, without consulting with District or obtaining the District’s prior written approval, if failure to act immediately would pose a danger to the public safety or improvements, as determined in the sole discretion of the City, or result in delays and cost overruns (collectively "Emergency"); however, the City shall use best efforts to immediately, or as soon as reasonably possible, inform the District of the changes. The District shall be responsible for any increased costs of the District Facilities due to an Emergency. 5.3 Errors and Omissions. City shall not make payment to Contractor or charge District for any costs or expenses of a change order resulting from an error or omission for which the Contractor is solely responsible. ARTICLE VI. INSPECTION 6.1 Inspection Team. District shall appoint an individual or team responsible for inspections and approving installation of District Facilities. 6.2 Inspection Stages and Obligations. District shall have the right to conduct inspections of the District Facilities and construction methods pertaining thereto as deemed necessary by District. District shall provide copies of all District inspections to City within twenty-five (25) working days of an inspection. District shall be responsible for verifying that all work on District Facilities is completed in accordance with the approved plans and specifications. It is specifically understood that District's inspectors shall have the District to enforce District's plans and specifications for District Facilities, which District shall include the District to require that any and all unacceptable materials, workmanship, and/or installation be replaced, repaired, or corrected by Contractor without cost to District and/or City. 6.3 Inspection Costs. All inspection costs incurred by District will be apportioned by the parties as provided above. 6.4 Notification. The Parties agree to develop mutually acceptable procedures for notification of inspections required or deemed necessary by either Party. ARTICLE VII. BONDS, PREVAILAING WAGE AND INSURANCE 7.1 Contractor's Insurance. City shall require in the Contract Documents that its Contractor be required to provide evidence of faithful performance and labor and material bonding, comply with prevailing wage payments, and provide insurance coverage, as required by City and the District for the entire construction and, if applicable, warranty period. The Parties shall be named as co-obligees on all bonds required for the Project, including but not limited to the payment and performance bonds for the Project. The District shall be included as a beneficiary of all guarantees, warrantees, and maintenance obligations, required under the City’s construction Contract Documents. The City shall ensure that the District and its directors, officers, employees, and agents are listed as additional insureds under all insurance policies required by contractor for the Project. Such insurance shall, at a minimum, include a comprehensive general liability policy in an amount sufficient to cover all contractual obligations of the contractor under the Construction Agreement, and no less than $2,000,000. The policy of insurance shall require a waiver of subrogation and be primary insurance. Furthermore, City shall obtain evidence that the Contractor maintains worker's compensation insurance in accordance with applicable requirements of law. 7.2 Parties' Insurance. District and City shall maintain insurance as customary in connection with their respective facilities. ARTICLE VIII. INDEMNITY 8.1 Indemnity. Each Party hereto agrees to defend, indemnify, protect, and hold harmless ("Indemnitor") the other Party, its agents, officers, and employees ("lndemnitees”) from and against any and all claims asserted or liability established for damages or injuries to any property or person, including death or dismemberment, which arise from or are caused by the negligent acts or omissions or willful misconduct of the Indemnitor's agents, officers, or employees, in performing the work or services herein and all expenses of investigation and defending against same; provided, however, that each Party's duty to defend, indemnify, and hold harmless the other shall not include any claims or liability arising from the sole negligence or willful misconduct of the other Indemnitee, its agents, officers or employees. District and City agree that in the event of any joint or concurrent negligence, they will apportion any established or agreed upon liability proportionate to their respective degree of fault. For the purposes of this provision, the Contractor and all subcontractors for the Project shall not be considered an agent of the City or District. Claims related to the actions or omissions of the Contractor or any subcontractors for the Project shall be addressed through provisions in the Construction Agreement, which provisions shall include indemnity, defense, and hold harmless provisions from the Contractor in favor of both the City and District and shall include a provision acknowledging that a portion of the work to be performed under the Construction Agreement is on behalf of the District and a provision acknowledging that the District is an intended beneficiary under the provisions of the Construction Agreement. 8.2. Enforcement Costs. Each Party agrees that it shall pay the costs the other Party incurs in enforcing the indemnity and defense provisions set forth in this Article VIII in the event the enforcing Party is successful. 8.3 Insurance Proceeds. Indemnitor’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the Indemnitee, its directors, officials, officers, employees, agents, and/or volunteers. 8.4. Survival. The Parties' obligations under Article VIII shall survive the termination of this Agreement. ARTICLE IX. RECORDS 9.1 Retention of Records. City shall require Contractor to maintain data and records related to the Construction Agreement for a period of not less than three (3) years following receipt of final payment. 9.2 Audit of Records. City shall make available and shall require that the Construction Agreement requires its Contractor to make available to District for examination at reasonable locations within the County of San Diego and at any time during normal business hours and as often as the District deems necessary, all of the data and records with respect to all matters covered by this Agreement and the Construction Agreement. City and Contractor will permit the District to make audits of all invoices, materials, payrolls, records of personnel, and other data and media relating to all matters covered by this Agreement and the Construction Agreement. ARTICLE X. NOTlCES 10.1 Writing. Any demand upon or notice required or permitted to be given by one Party to the other Party shall be in writing. 10.2 Effective Date. Except as otherwise provided by law, any demand upon or notice required or permitted to be given by one Party to the other Party shall be effective: (i) on personal delivery, (ii) on the second business day after mailing by certified or registered U.S. Mail, return receipt requested, (iii) on the succeeding business day after mailing by Express Mail or after deposit with a private delivery service of general use (e.g., Federal Express) postage or fee prepaid as appropriate, or (iv) upon successful transmission of facsimile. 10.3 Recipients. All demands or notices required or permitted to be given shall be sent to all of the following: District: Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978 Phone: (619) 670-2282 Attention: District Project Manager City: City of Chula Vista, –Engineering & Capital Projects 276 Fourth Avenue Chula Vista, CA 91910 Fax: (619) 691-5171 Attention: City Project Manager and Director of Engineering & Capital Projects. 10.4 Change of Address(es). Notice of change of address shall be given in the manner set forth in this Article. ARTICLE XI. MISCELLANEOUS 11.1 Headings. All article headings are for convenience only and shall not affect the interpretation of this Agreement. 11.2 Gender and Number. Whenever the context requires, the use herein of (i) the neuter gender includes the masculine and the feminine genders and (ii) the singular number includes the plural number. 11.3 Reference to Paragraphs. Each reference in this Agreement to a section refers, unless otherwise stated, to a section of this Agreement. 11.4 Incorporation of Recitals. All recitals herein are incorporated into this Agreement and are made a part hereof. 11.5 Covenants and Conditions. All provisions of this Agreement expressed as either covenants or conditions on the part of the City or the District, shall be deemed to be both covenants and conditions. 11.6 Integration. This Agreement and the Exhibits and references incorporated into this Agreement fully express all understandings of the Parties concerning the matters covered in this Agreement. No change, alteration, or modification of the terms or conditions of this Agreement, and no verbal understanding of the Parties, their officers, agents, or employees shall be valid unless made in the form of a written change agreed to in writing by both Parties or an amendment to this Agreement agreed to by both Parties. All prior negotiations and agreements are merged into this Agreement. 11.7 Severability. The unenforceability, invalidity, or illegality of any provision of this Agreement shall not render any other provision of this Agreement unenforceable, invalid, or illegal. 11.8 Drafting Ambiguities. The Parties agree that they are aware that they have the right to be advised by counsel with respect to the negotiations, terms and conditions of this Agreement, and the decision of whether or not to seek advice of counsel with respect to this Agreement is a decision that is the sole responsibility of each Party. This Agreement shall not be construed in favor of or against either Party by reason of the extent to which each Party participated in the drafting of the Agreement. 11.9 Conflicts Between Terms. If an apparent conflict or inconsistency exists between the main body of this Agreement and the Exhibits, the main body of this Agreement shall control. If a conflict exists between an applicable federal, state, or local law, rule, regulation, order, or code and this Agreement, the law, rule, regulation, order, or code shall control. Varying degrees of stringency among the main body of this Agreement, the Exhibits, and laws, rules, regulations, orders, or codes are not deemed conflicts, and the most stringent requirement shall control. Each Party shall notify the other immediately upon the identification of any apparent conflict or inconsistency concerning this Agreement. 11.10 Prompt Performance. Time is of the essence of each covenant and condition set forth in this Agreement. 11.11 Good Faith Performance. The Parties shall cooperate with each other in good faith, and assist each other in the performance of the provisions of this Agreement. 11.12 Further Assurances. City and District each agree to execute and deliver such additional documents as may be required to effectuate the purposes of this Agreement. 11.13 Exhibits. Each of the following Exhibits is attached hereto and incorporated herein by this reference: Exhibit “A” – One-Quarter size City Plans of Heritage Road Bridge Replacement” 11.14 Controlling Law. The laws of the State of California shall govern and control the terms and conditions of this Agreement. 11.15 Jurisdiction, and Venue. The venue for any suit or proceeding concerning this Agreement, the interpretation or application of any of its terms, or any related disputes shall be in the County of San Diego, State of California. 11.16 Agency/Municipal Powers. Nothing contained in this Agreement shall be construed as a limitation upon the powers of the District or the City as a chartered city of the State of California. 11.17 Third Party Relationships. Nothing in this Agreement shall create a contractual relationship between City or District and any third party; however, the City shall ensure that the District is an intended third party beneficiary of the Construction Agreement. 11.18 Limitation on District Remedies and Waiver of Claims. District understands that the sole purpose of this Agreement is to establish a method to reimburse the City for obligations of the District for payment of the costs of the installation and construction of District Facilities, which costs would otherwise be due directly to the Contractor. In accordance with such purpose, the District agrees that its sole remedy for construction defects, breach by City contractor, damage to property or persons, including death, to District personnel or any third parties, or other claims arising out of or related to the work performed to install and/or construct District Facilities shall be against the Contractor or its subcontractors and agents, and, hereby, waives any and all claims it may hereafter have against the City, arising out of the same, except for those claims arising out of the sole negligence or sole willful misconduct of the City. The City agrees to cooperate with the District on any claims the District may have against the Contractor, including but not limited to granting the District an assignment of rights under the City’s contract with the Contractor. District, hereby, expressly waives all claims against the City identified to District in Section 11.18: Included in this release, the District hereby waives the provisions of section 1542 of the California Civil Code, which states: "A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor." DISTRICT REPRESENTATIVE: NAME, TITLE DATE: 11.19 Non-Assignment. Except as relates to the Construction Agreement, the City shall not assign the obligations under this Agreement. 11.20 Successors in Interest. This Agreement and all rights and obligations created by this Agreement shall be in force and effect whether or not any Parties to the Agreement have been succeeded by another entity, and all rights and obligations created, by this Agreement shall be vested and binding on any Party's successor in interest. 11.21 No Waiver. No failure of either the City or the District to insist upon the strict performance by the other of any covenant, term or condition of this Agreement, nor any failure to exercise any right or remedy consequent upon a breach of any covenant, term, or condition of this Agreement, shall constitute a waiver of any such breach of such covenant, term or condition. No waiver of any breach shall affect or alter this Agreement, and each and every covenant, condition, and term hereof shall continue in full force and effect to any existing or subsequent breach. 11.22 Administrative Claims Requirements and Procedures. No suit or arbitration shall be brought arising out of this Agreement, against the City unless a claim has first been presented in writing and filed with the City and acted upon by the City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by the City in the implementation of same. Upon request by City, District shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. The City will meet and confer with the District in good faith before filing a suit or arbitration action against the District. 11.23 Dispute Resolution. If a dispute arises out of or relates to this Agreement, or the breach thereof, the Parties, following the procedures required by Section 11.22, agree to engage in good faith negotiations to attempt to resolve the dispute. In the event of any action at law or in equity, including an action for declaratory relief, between the Parties arising out of or relating to this Agreement, then the prevailing Party in such action will be entitled to recover from the other Party a reasonable sum as attorneys’ fees and costs. The prevailing Party will be determined in accordance with Civil Code Section I717 (b)(1) or any successor statute. The prevailing Party will also be entitled to its reasonable attorneys' fees and costs in any post-judgment proceedings to collect or enforce the judgment. This provision is separate and will survive the merger of this Agreement into any judgment on this Agreement. 11.24 Administration of Contract. City hereby designates Jose Gomez, Principal Civil Engineer, as City Project Manager for the construction of Project and as the primary contact for all matters relating to this Agreement, including the processing, documenting, and approval of City Invoices. District hereby designates Kevin Cameron, Engineering Manager, as District Project Manager for District Facilities and as the primary contact for all matters relating to this Agreement, including the submittal of City Invoices for reimbursement. 11.25 Signing District. The representative for each Party signing on behalf of such Party hereby declares that District has been obtained to sign on behalf of the City and/or District, as applicable and agrees to hold the other Party or Parties hereto harmless if it is later determined that such District does not exist. IN WITNESS WHEREOF, City and District have executed this Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: City of Chula Vista Otay Water District Dated: Dated: By: By: John McCann, Mayor Jose Martinez, General Manager Attest: City Clerk Approved as to form: Approved as to form: Glen Googins ____________________________ City Attorney __________________, for District Dated: Dated: STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 1, 2023 SUBMITTED BY: Kevin Cameron Engineering Manager PROJECT: ANX-22-004 DIV. NO.5 APPROVED BY: Michael Long, Chief, Engineering Jose Martinez, General Manager SUBJECT: Adopt Resolution No. 4423 for the Rachel Vargas Sewer Annexation, 1939 Vereda Court, El Cajon, CA 92019, APN: 517- 111-53-00 to the Otay Water District Sewer Improvement District ID No. 18 GENERAL MANAGER’S RECOMMENDATION: That the Board of Directors (Board) adopt Resolution No. 4423 for the Rachel Vargas Sewer Annexation, 1939 Vereda Court, El Cajon, CA 92019, APN: 517-111-53-00 to the Otay Water District Sewer Improvement District ID No. 18 (see Attachment B). COMMITTEE ACTION: Please see Attachment A. PURPOSE: The purpose of the proposed annexation of the property, owned by Rachel Vargas (“Property Owner”), located at 939 Vereda Court, El Cajon, CA 92019, APN: 517-111-53-00 to the Otay Water District Sewer Improvement District ID No. 18 is to make sewer service available to the parcel owned by the Property Owner. ANALYSIS: A written request and Petition signed by the Property Owner has been received for annexation of APN: 517-111-53-00 into Improvement District No. 18 for sewer service. The total acreage to be annexed is 0.55 acres. The parcel is currently within the District's sphere of influence of the District’s Sewer Improvement District No. 18 as shown in Exhibit D. Therefore, annexation of this property to Improvement District No. 18, is required for sewer service. Agenda Item 6b 2 The property currently receives no sewer service and the District’s sewer facilities are located close to the property. This annexation will not create an island. The property is already in the Water Improvement District. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The property owner has paid the District’s annexation processing fee of $898.01 and the sewer annexation fee of $1,255.58 for a total of $2,153.59 deposited into account D1150-090584 and will pay any additional service fees including the water capacity fee as established in the attached Resolution No. 4423. GRANTS/LOANS: Not applicable. 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. KC/ML:jf Https://otaywater365.sharepoint.com/sites/engpublicservices/Shared Documents/SAMP WSA ANX/D1150-090584 Sewer Annexation 1939 Vereda Ct_APN 517-111-53-00/Staff Report/BD 03-01-23 Sewer Annexation Rachel Vargas Staff Report.docx Attachments: Attachment A - Committee Action Attachment B - Resolution No. 4423 Exhibit A - Legal Description Exhibit B - Legal Map Exhibit C – Location Map ATTACHMENT A SUBJECT/PROJECT: ANX-22-004 Adopt Resolution No. 4423 for the Rachel Vargas Sewer Annexation, 1939 Vereda Court, El Cajon, CA 92019, APN: 517-111-53-00 to the Otay Water District Sewer Improvement District ID No. 18 COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on February 14, 2023 and the following comments were made: • Staff noted that this report is to adopt Resolution No. 4423, approving the sewer annexation of the property owned by the Rachel Vargas (Property Owner), 1939 Vereda Court, El Cajon, 92019, APN: 517-111-53-00 to the Otay Water District Sewer Improvement District ID No. 18. • Staff mentioned that the purpose of the proposed annexation of the property, owned by the Rachel Vargas, is to make sewer service available to the parcel. A written request and Petition signed by a representative of the Property Owner has been received for the proposed annexation. The total acreage to be annexed is 0.55 acres. The parcel is currently within jurisdictional boundary of the Otay Water District and following the Board’s approval, it will become part of Sewer ID No. 18. The parcel is located near an existing 8-inch OWD sewer main, and is already in the District’s water ID boundary. • Staff mentioned that the property owner has paid the District’s annexation fees for the sewer service. Any additional fees, including the sewer capacity fee, as established in Resolution No. 4423 will be collected at the time of connection. • Committee inquired about the length of a lateral needed to connect to the District’s infrastructure. Staff responded that will depend on where the property owner proposes to connect which has not been determined. Upon completion of the discussion, the Committee supported staffs’ recommendation to the full board as a consent item. ATTACHMENT B Page 1 of 4 RESOLUTION NO. 4423 A RESOLUTION OF THE BOARD OF DIRECTORS OF OTAY WATER DISTRICT APPROVING THE ANNEXATION TO OTAY WATER DISTRICT IMPROVEMENT DISTRICT NO. 18 OF THOSE LANDS DESCRIBED AS “RACHEL VARGAS SEWER ANNEXATION (APN: 517-111-53- 00)” (FILE NO. ANX-22-004/DIVISION 5) WHEREAS, a letter has been submitted by Jorge Pegueros, the Project Manager representing the owner and party (Rachel Vargas) that has an interest in the land described in Exhibit "A," attached hereto, for annexation of said land to Otay Water District Sewer Improvement District No. 18 pursuant to California Water Code Section 72670 et seq.; and WHEREAS, pursuant to Section 72680.1 of said Water Code, the Board of Directors may proceed and act thereon without notice and hearing. NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT FINDS, RESOLVES, ORDERS, AND DETERMINES as follows: 1. A depiction of the area proposed to be annexed, and the boundaries of ID 18 following the annexation, is set forth on a map in Exhibit “B” filed with the Secretary of the District, which map shall govern for all details as to the area proposed to be annexed. 2. The purpose of the proposed annexation is to make sewer service available to the area to be annexed, which availability constitutes a benefit to said area. 3. The Board finds and determines that the area proposed to be annexed to ID 18 will be benefited by such annexation and that the property currently within ID 18 will also be benefited and not injured by such annexation because after the annexation ATTACHMENT B Page 2 of 4 a larger tax base will be available to finance the sewer facilities and improvements of ID 18. 4. The Board of Directors hereby declares that the annexation of said property is subject to the owners complying with the following terms and conditions: (a) The petitioner for said annexation shall pay to Otay Water District the following: (1) The annexation processing fee at the time of application; (2) State Board of Equalization filing fees in the amount of $3,500, if applicable; (3) The sewer annexation fees at the time of connection to the Otay Water District water system; (4) Yearly assessment fees will be collected through the County Tax Assessor’s office in the amount of $10 for APN 517-111-53-00; (5) In the event that sewer service is to be provided, Petitioners shall pay all applicable sewer fees per Equipment Dwelling Unit (EDU) at the time the sewer connection is purchased; and (6) Payment by the owner of APN 517-111-53-00 of all other applicable local or state agency fees or charges. (b) The property to be annexed shall be subject to taxation after annexation thereof for the ATTACHMENT B Page 3 of 4 purposes of the improvement district, including the payment of principal and interest on bonds and other obligations of the improvement district, authorized and outstanding at the time of annexation, the same as if the annexed property had always been a part of the improvement district. 5. The Board hereby declares the property described in Exhibit "A" shall be considered annexed to ID 18 upon passage of this resolution. 6. The Board of Directors further finds and determines that there are no exchanges of property tax revenues to be made pursuant to California Revenue and Taxation Code Section 95 et seq., as a result of such annexation. 7. The annexation of APN 517-111-53-00 to the District’s Sewer Improvement District 18 is hereby designated as the “RACHEL VARGAS SEWER ANNEXATION (APN: 517-111-53-00).” 8. Pursuant to Section 57202(a) of the Government Code, the effective date of the RACHEL VARGAS SEWER ANNEXATION (APN: 517-111-53-00) shall be the date this Resolution is adopted by the Board of Directors of the Otay Water District. 9. The General Manager of the District and the Secretary of the District, or their respective designees, are hereby ordered to take all actions required to complete this annexation. ATTACHMENT B Page 4 of 4 PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting held this 1st day of March, 2023. President ATTEST: __________________________________ District Secretary RANCHO LAND COMPANY 406 16th Street, Suite 102, Ramona, CA 92065 Email: clynch@rancholandco.com Phone: (760)788-1530 Annexation into Otay Water District Sewer Improvement District 18 ALL THAT CERTAIN REAL PROPERTY, SITUATE IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA DESCRIBED AS FOLLOWS: ALL THAT PORTION OF PARCEL 3, AS SHOWN ON PARCEL MAP RECORDED IN BOOK OF PARCEL MAPS AT PAGE 5435, MORE PARTICULARY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SECTION 19, TOWNSHIP 16 SOUTH, RANGE 1 EAST OF THE SAN BERNARDINO MERIDIAN, THENCE ALONG THE EASTERLY LINE OF SAID SECTION 19, SOUTH 00°35’24” WEST, 1324.44 FEET TO THE SOUTHEAST CORNER OF THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 19; THENCE ALONG THE SOUTHERLY LINE OF SAID NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SECTION 19, NORTH 89°48’53” WEST, 987.59 FEET TO THE SOUTHWEST CORNER OF SAID PARCEL 3, PARCEL MAP 5435, BEING THE TRUE POINT OF BEGINNING; 1. THENCE ALONG THE WESTERLY LINE OF SAID PARCEL 3, NORTH 00°43’23” EAST, 210.07 FEET TO THE NORTHWEST CORNER OF SAID PARCEL 3; 2. THENCE EASTERLY ALONG THE NORTHERLY LINE OF SAID PARCEL 3, SOUTH 89°46’42” EAST, 115.00 FEET TO THE NORTHEAST CORNER OF SAID PARCEL 3; 3. THENCE SOUTHERLY ALONG THE EAST LINE OF SAID PARCEL 3, SOUTH 00°43’31” WEST, 210.00 FEET TO THE SOUTHEAST CORNER OF SAID PARCEL 3; 4. THENCE WESTERLY ALONG THE SOUTHERLY LINE OF SAID PARCEL 3, NORTH 89°48’53” WEST, 115.00 FEET TO THE TRUE POINT OF BEGINNING. CONTAINING 0.55 ACRES MORE OR LESS FOR ASSESSMENT PURPOSES ONLY. THIS DESCRIPTION OF LAND IS NOT A LEGAL PROPERTY DESCRIPTION AS DEFINED IN THE SUBDIVISION MAP ACT AND MAY NOT BE USED AS THE BASIS FOR AN OFFER FOR SALE OF THE LAND DESCRIBED. _____________________________________________________ CASEY R. LYNCH, PLS 8380 DATE 10-11-2022 AP N 51 7 - 1 1 1 - 5 4 AP N 5 1 7 - 1 1 1 - 5 1 AP N 5 1 7 - 1 1 1 - 5 2 18 19 20 17 PARCEL 3 PARCEL MAP 5435 APN 517-111-53 0.55 ACRES APN 517-111-20 APN 517-111-41 APN 517-111-40APN 517-111-39 VE R E D A C O U R T ( P R I V A T E S T R E E T ) VEREDA COURT (PRIVATE STREET) OTAY WATER DISTRICT RANCHO LAND COMPANY 406 16TH STREET, SUITE 102 RAMONA CA, 92065 (760)788-1530 ANNEXATION PLAT EXHIBIT "B" PARCEL 3 OF PARCEL MAP 5435 1939 VEREDA COURT EL CAJON, CA 92019 R LC R LC OTAY WATER DISTRICTANNEXATION OF APN 517-111-53-00TO THE OTAY WATER DISTRICT SEWER IMPROVEMENT DISTRICT 18EXHIBIT CC: \ O n e D r i v e W o r k \ O t a y W a t e r D i s t r i c t \ E N G P U B L I C S E R V I C E S - D o c u m e n t s \ S A M P W S A A N X \ D 1 1 5 0 - 0 9 0 5 8 4 S e w e r A n n e x a t i o n 1 9 3 9 V e r e d a C t _ A P N 5 1 7 - 1 1 1 - 5 3 - 0 0 \ A r c h i e v e \ E x h i b i t C - S e w e r A n n e x a t i o n 5 1 7 - 1 1 1 - 5 3 - 0 0 , A N X - 2 2 - 0 0 4 . m x d R$ R$ R$ R$ R$ R$ VICINITY MAP PROJECT SITE DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ÃÅ54!\ ÃÅ125 ÃÅ94 ÃÅ905 §¨¦805 FNTS APN 517-111-53-00 ANX-22-004F 0 325162.5 Feet VI S T A V E R E D A C T VIST A G R A N D E R D STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 1, 2023 SUBMITTED BY: Eid Fakhouri, Finance Manager PROJECT: DIV. NO.All APPROVED BY: Kevin Koeppen, Assistant Chief of Finance Joseph R. Beachem, Chief Financial Officer Jose Martinez, General Manager SUBJECT: Adopt Resolution No. 4422 Designating Specific Staff Positions to be Authorized as Agents to Liaise with the State of California, Office of Emergency Services (Cal OES), on the District’s Behalf in All Matters Pertaining to Disaster Assistance GENERAL MANAGER’S RECOMMENDATION: That the Board adopt Resolution No. 4422 designating specific staff positions to be authorized as agents to liaise with the State of California, Office of Emergency Services (Cal OES), on the District’s behalf in all matters pertaining to disaster assistance. COMMITTEE ACTION: See Attachment A. PURPOSE: To authorize District staff in the positions of Finance Manager, Safety and Security Specialist, and Environmental Compliance Specialist, to be the authorized contacts on behalf of the District for all matters pertaining to disaster assistance. Agenda Item 6c 2 ANALYSIS: It is important that, in the event of an emergency, the District is able to efficiently coordinate and execute claims with Cal OES and/or FEMA. In the four instances below, the District applied to the Federal Emergency Management Agency (FEMA) and (Cal OES) for disaster assistance to help pay for expenses related to declared disasters. FEMA requires all claims to be processed through Cal OES. Cal OES requires the governing body of each agency to formally designate specific agents by position title, to represent the agency in all matters pertaining to their application for disaster assistance. Cal OES will not release any grant money to an agency that has not provided them with a fully executed Designation of Agent(s) Resolution (Attachment B) and Cal OES Form 130 (Attachment C). Cal OES policy mandates that this resolution is only valid for a maximum of three (3) years. The District’s previous resolution, Resolution No. 4378 approved in April 2020, will expire in April 2023. Disaster Assistance On March 13, 2020, the President declared the ongoing Coronavirus Disease 2019 (COVID-19) pandemic of sufficient severity and magnitude to warrant an emergency declaration for the nation. The declaration triggered funding and support from the Federal Government for local agencies. As of today, the emergency declaration remains in effect. The exact end date is unclear and related expenses may be accumulated and submitted for reimbursement through the declared emergency end-date. During the declared emergency, the District has worked closely with Cal OES and submitted three expense reimbursements for expenses related to disinfection, safe-reopening, remote work, COVID-19 testing, and other related items. The submittals are currently under review with Cal OES and FEMA. The large volume of agencies seeking reimbursement has caused a significant backlog at FEMA. Therefore, FEMA has not been able to provide an anticipated date for when their review will be finalized. 1. Coverage Period: 2/24/2020 – 09/14/2020, submitted for $218,371. 2. Coverage Period: 9/15/2020 – 12/31/2021, submitted for $49,653. 3. Coverage Period: 1/01/2022 – 07/01/2022, submitted for $16,259. 3 In May of 2017, as a part of working with Cal OES to obtain funds for repairs to District property from the January 2017 winter storms, the Board passed Resolution No. 4330 to designate specific staff positions to be authorized as agents to work with Cal OES in all matters pertaining to disaster assistance. In April 2011, as a part of working with Cal OES to obtain funds for repairs to District property due to the December 2010 rainstorms, the Board passed Resolution No. 4170 to designate District agents to work with Cal OES for disaster assistance. In December 2007, as a part of working with Cal OES to obtain funds for repairs to District property due to the October 2007 Harris Fire, the Board passed Resolution No. 4115 to Designate District agents for Disaster Assistance. Hazard Mitigation Grant In April 2022, a fifth grant application with Cal OES in the amount of $257,933 was filed for the development of a Climate Adaption and Resilience Plan. Cal OES is postponing its review of the grant application until the District’s Hazard Mitigation Plan (HMP) has been adopted. Staff is planning to bring the HMP to the Board of Directors for review and adoption between April and May, 2023. CONCLUSION: The District has identified the following three positions as being both knowledgeable and appropriate for working directly with Cal OES and FEMA: 1) Finance Manager, 2) Safety and Security Specialist, and 3) Environmental Compliance Specialist. These are the same positions that were identified in the previous resolution. This is a universal resolution and is effective for all open and future disasters up to three (3) years following the date of approval below. The three (3) year limit is established by Cal OES and the universal resolution would allow the list of authorized individuals to approve requests for financial assistance in the event of any disaster over the duration of the resolution. FISCAL IMPACT: Joe Beachem, Chief Financial Officer This specific action does not authorize any spending or the receipt of funds, it only facilitates future interactions to obtain financial assistance. 4 STRATEGIC GOAL: The District ensures its continued financial health through the establishment of proper relief in the case of a natural disaster. LEGAL IMPACT: None. Attachments: Attachment A – Committee Action Attachment B – Resolution No. 4422 Attachment C – Cal OES Form 130 ATTACHMENT A SUBJECT/PROJECT: Adopt Resolution No. 4422 Designating Specific Staff Positions to be Authorized as Agents to Liaise with the State of California, Office of Emergency Services (Cal OES), on the District’s Behalf in All Matters Pertaining to Disaster Assistance COMMITTEE ACTION: The Finance, Administration, and Communications Committee, met on February 15, 2023, to review this item and the following comments were made: • Staff indicated that this action does not authorize any spending or receipt of funds and that it only facilitates future interactions to obtain financial assistance in the event of a disaster. • Staff noted that since the staff report was drafted, there were a couple of updates: 1) The County of San Diego officially declared an emergency due to the 2022/2023 winter storms, and that staff responded and submitted a preliminary damage estimate of around $76,500 for various access road repairs to our facilities; and 2) CalOES reviewed the grant application for the development of a Climate Adaption and Resilience Plan, which is now under review with FEMA. • Regarding FEMA, staff indicated that no money related to COVID had been received yet, which is currently under review. Staff also indicated that they are following up weekly and that the claim has not yet been rejected. Staff also noted that all other grants listed had been received. • The Committee commented that it was great to get money back for ratepayers. • The Committee mentioned that CWA, MWD, and the County of San Diego had official climate action plans and inquired whether the District, although not required, had any plans to track or have a climate The above signatures attest that the attached document has been reviewed and to the best of their ability the signers verify that it meets the District quality standard by clearly and concisely conveying the intended information; being grammatically correct and free of formatting and typographical errors; accurately presenting calculated values and numerical references; and being internally consistent, legible and uniform in its presentation style. action plan. Staff responded that as of right now there are no plans as it is not required. Staff further noted that they are gathering information and they are sitting in on County meetings regarding the matter. • The Committee further suggested that staff be prepared in the event there are public inquiries about the District being carbon neutral. • Upon completion of the discussion, the Committee supported staffs’ recommendation and presentation to the full Board as a consent item. RESOLUTION NO. 4422 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT FOR DESIGNATION OF AGENTS TO THE STATE OF CALIFORNIA, OFFICE OF EMERGENCY SERVICES WHEREAS, the Otay Water District Board of Directors have been presented with a “Designation of Applicant’s Agent Resolution” for the Otay Water District, authorizing its agent(s) to execute for and on behalf of the District for the purpose of obtaining federal financial assistance for any existing or future grant program, including, but not limited to any of the following: -Federally declared Disaster (DR), Fire Mitigation Assistance Grant (FMAG), California State Only Disaster (CDAA), Immediate Services Program (ISP), Hazard Mitigation Grant Program (HMGP), Building Resilient Infrastructure and Communities (BRIC), Legislative Pre-Disaster Mitigation Program (LPDM), under -Public Law 93-288 as amended by the Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1988, and/or state financial assistance under the California Disaster Assistance Act. -Flood Mitigation Assistance Program (FMA), under Section 1366 of the National Flood Insurance Act of 1968. ATTACHMENT B -National Earthquake Hazards Reduction Program (NEHRP) 42 U.S. Code 7704 (b)((2) (A) (ix) and 42 U.S. Code 7704 (b) (2)(B) National Earthquake Hazards Reduction Program, and also The Consolidated Appropriations Act, 2018, Div. F, Department of Homeland Security Appropriations Act, 2018, Pub. L. No. 115-141 -California Early Earthquake Warning (CEEW) under CA Gov Code – Gov, Title 2, Div. 1, Chapter 7, Article 5, Sections 8587.8, 8587.11, 8587.12; and WHEREAS, the Board needs to authorize its agent(s) to provide to the State Office of Emergency Services for all matters pertaining to such state disaster assistance the assurances and agreements required; and WHEREAS, it is in the interest of the District to designate agents; NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the Board of Directors of the Otay Water District that the following three positions are so designated as Authorized Agents: 1) Finance Manager; 2) Safety and Security Specialist; and 3) Environmental Compliance Specialist. PASSED, APPROVED AND ADOPTED by the Board of Directors of Otay Water District at a board meeting held this 1st day of March 2023, by the following vote: Ayes: Noes: Abstain: Absent: ________________________ President ATTEST: ____________________________ District Secretary BOARD OF DIRECTORS OTAY WATER DISTRICT FINANCE MANAGER SAFETY AND SECURITY SPECIALIST ENVIRONMENTAL COMPLIANCE SPECIALIST OTAY WATER DISTRICT OTAY WATER DISTRICT ATTACHMENT C x 01 M 23 MARK ROBAK, PRESIDENT JOSE LOPEZ, VICE PRESIDENT RYAN KEYES, TREASURER A R C H TITA RAMOS-KROGMAN DISTRICT SECRETARY OTAY WATER DISTRICT BOARD OF DIRECTORS OTAY WATER DISTRICT 01 MARCH 23 DISTRICT SECRETARY STAFF REPORT TYPE MEETING: Regular Board Meeting MEETING DATE: March 1, 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 03-01-23.doc Agenda Item 7a 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: Regular Board MEETING DATE: March 1, 2023 SUBMITTED BY: Lisa Coburn-Boyd Environmental Compliance Specialist CIP /G.F. NO: D1152- 090587 DIV. NO.1 APPROVED BY: Bob Kennedy, Engineering Manager Michael Long, Chief, Engineering Jose Martinez, General Manager SUBJECT: Approval of Water Supply Assessment and Verification Report (February 2023) for the City of Chula Vista Otay Ranch Town Center Redevelopment Project GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) approve the Water Supply Assessment Report and Verification (WSA&V Report) dated February 2023 for the City of Chula Vista Otay Ranch Town Center Redevelopment Project (ORTC Redevelopment Project) as required by Senate Bills 610 and 221 (see Exhibit A for Project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board approval of the February 2023 WSA&V Report for the City of Chula Vista ORTC Redevelopment Project, as required by Senate Bill 610 and Senate Bill 221 (SB 610 and SB 221). ANALYSIS: The City of Chula Vista submitted a request to the District for a WSA&V Report, pursuant to SB 610 and SB 221. SB 610 and SB 221 require that, upon the request of a City or County, a water purveyor, such as the District, prepare a water supply assessment and verification report to be included in the California Agenda Item 8a 2 Environmental Quality Act (CEQA) environmental documentation. The City’s WSA&V request letter dated January 19, 2023 was received electronically by the District on January 19, 2023 so the 90-day deadline for the District to provide the Board an approved WSA&V Report to the City ends April 19, 2023. SB 610 requires the city or county to evaluate whether water supplies will be sufficient to meet the projected water demand for certain “projects” that are otherwise subject to the requirement of the CEQA. SB 221 requires written verification from the water purveyor of the public water system that sufficient water supplies are planned to be available for certain residential subdivisions of property. The requirements of SB 610 and SB 221 are addressed by the February 2023 WSA&V Report for this Project. The WSA&V Report was prepared by the District in consultation with Dexter Wilson Engineering, Inc., the San Diego County Water Authority (Water Authority), and the City of Chula Vista (City). The City ORTC Redevelopment Project WSA&V Report is provided as Exhibit B. Prior to transmittal to the City, the WSA&V Report must be approved by the Board of Directors. Upon approval of the WSA&V Report for the City ORTC Redevelopment Project by the District's Board of Directors, the WSA&V Report may be used to comply with the requirements of the Senate Bill 610 by incorporating the approved WSA&V Report into the CEQA compliance process for the project, which in this case, will be an Environmental Impact Report (EIR) Addendum. The City, as the CEQA lead agency, may cite the approved WSA&V Report as evidence that a sufficient water supply is planned and intended to be available to serve the project. Additionally, Senate Bill 221 Water Supply Verification is accomplished using the approved WSA&V Report in the City’s water supply verification report for the project where it will be cited as verification of the intent of the District to have sufficient water supply available for the project. The proposed project entitlement includes a Chula Vista General Plan Amendment, an Otay Ranch General Development Plan Amendment, a Freeway Commercial Sectional Planning Area Amendment, and a tentative map to subdivide the property. The City is having an EIR Addendum prepared for the redevelopment of 58.49 acres (ORTC Redevelopment Project) of the existing Otay Ranch Town Center. The existing land use of the Otay Ranch Town Center is designated commercial and will need to be rezoned to accommodate the proposed residential component. The project is located in the northwest portion of the existing Otay Ranch Town Center. The Otay Ranch Town Center is located on the east side of State Route 3 125, north of Birch Road, south of Olympic Parkway, and west of Eastlake Parkway. The existing Otay Ranch Town Center site includes five lots (Lots 1, 2, 3, 4, and 5) on approximately 87.25 acres. The project proposes to redevelop the northwest portion of Lots 1 and 4, which make up 58.49 acres of the overall site. Within the 58.49 acres, 15.66 acres will be affected. The redevelopment would add 840 residential units, a park, and plaza space, and rebuild, as ground-floor commercial, approximately 37,200 square-feet of commercial space. The redevelopment will result in no net gain or loss of retail square footage as 37,200 square feet will be removed and rebuilt. The proposed development footprint of 15.66 acres would consist of 11.82 acres of mixed-use area, 0.92 acres of park and plaza space, and 2.92 acres of private streets. The expected potable water demand for the ORTC Redevelopment project is 263,807 GPD or about 295.5 AFY. This is 121 AFY higher than the projected demands in the approved Sub-area Master Plan for the project and the District’s 2015 Water Facilities Master Plan which estimated 155,741 GPD or about 174.5 AFY for commercial use only. The expected recycled water demand is 13,300 GPD or about 14.9 AFY. Recycled water will be used to irrigate common landscaped areas of the proposed mixed-use sites and the park and plaza space. The 121 AFY increase in demand is accounted for through the Accelerated Forecasted Growth demand increment of the Water Authority’s 2020 Urban Water Management Plan (UWMP). As documented in the Water Authority’s 2020 UWMP, the Water Authority is planning to meet future and existing demands which include the demand increment associated with the accelerated forecasted growth. The Water Authority will assist its member agencies in tracking the environmental documents provided by the agencies that include water supply assessments and verifications reports that utilize the accelerated forecasted growth demand increment to demonstrate supplies for the development. The District prepared the WSA&V Report in consultation with Dexter Wilson Engineering, Inc., the Water Authority, and the City. This WSA&V Report demonstrates and documents that sufficient water supplies are planned for and are intended to be made available over a 20-year planning horizon under normal supply conditions and in single and multiple-dry years to meet the projected demand of the ORTC Redevelopment project and other planned development projects within the District. 4 FISCAL IMPACT: Joe Beachem, Chief Financial Officer The District has been reimbursed $5,000 for all costs associated with the preparation of the City of Chula Vista ORTC Redevelopment Project WSA&V Report. The reimbursement was accomplished via an $5,000 deposit the Project proponents placed with the District. STRATEGIC GOAL: The preparation and approval of the WSA&V Report for the City of Chula Vista OTRC Redevelopment Project supports the District’s Mission statement, “To provide high value water and wastewater services to the customers of the Otay Water District in a professional, effective, and efficient manner” and the General Manager’s Vision, “A District that is at the forefront in innovations to provide water services at affordable rates, with a reputation for outstanding customer service.” LEGAL IMPACT: Approval of a WSA&V Report for the City of Chula Vista ORTC Redevelopment Project in form and content satisfactory to the Board of Directors would allow the District to comply with the requirements of Senate Bills 610 and 221. LC-B/BK:jf https://otaywater365.sharepoint.com/sites/engoperating/Shared Documents/Engineering/Planning/Water Supply Assessments/Otay Ranch Town Center Redevlopment Project/Staff Report/BD 03-01-23, Staff Report, City of Chula Vista Otay Ranch Town Center Redevelopment Project WSA&V Report (LCB-BK).docx Attachments: Attachment A – Committee Action Exhibit A – Location Map Exhibit B – City of Chula Vista Otay Ranch Town Center Redevelopment Project WSA&V Report Exhibit C – PowerPoint Presentation 5 ATTACHMENT A SUBJECT/PROJECT: D1152-090587 Approval of Water Supply Assessment and Verification Report (February 2023) for the City of Chula Vista Otay Ranch Town Center Redevelopment Project COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on February 14, 2023 and the following comments were made: • This report and presentation are to ask the Committee to recommend Board approval of the Water Assessment & Verification Report (WSA&V) for the City of Chula Vista Otay Ranch Town Center Redevelopment project. • The City of Chula Vista submitted a request to the District for a WSA&V Report, pursuant to SB 610 and SB 221. The primary intent of these bills is to improve the link between water supply availability and land use decisions. • The Committee asked when the request is made from the City of Chula Vista this is just a formality and staff replied it is to determine that we have the water available to supply them to build. This was a commercial area, and they are making this a mixed-use area. • The Committee asked if the District ever did not have the capability to supply water. Staff replied that during the previous drought there was some concern that we may not be able to provide water use and there is a certain drought normal where we would not be able to sell water meters to developers. This is documented in the current Water Shortage Contingency Plan that all agencies have in this region. Upon completion of the discussion, the Committee supported staffs’ recommendation and presentation to the full board as an action item. OTAY WATER DISTRICTOTAY RANCH TOWN CENTER REDEVELOPMENT PROJECTLOCATION MAP EXHIBIT AC:\Users\donald.bienvenue\OneDrive - Otay Water District\Desktop\Otay Ranch Town Center.mxd !\ VICINITY MAP PROJECT SITE DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ÃÅ54 ÃÅ125 ÃÅ94 ÃÅ905 §¨¦805 FNTS PROJECT SITE D1152-090587F 0 1,000500 Feet O LY M PIC PKWY SR - 125 B I R C H R D E A S T L A K E PK W Y OTAY WATER DISTRICT WATER SUPPLY ASSESSMENT AND VERIFICATION REPORT for the City of Chula Vista Otay Ranch Town Center Redevelopment Project Prepared by: Lisa Coburn-Boyd Environmental Compliance Specialist and Bob Kennedy, P.E. Engineering Manager Otay Water District In consultation with Dexter Wilson Engineering, Inc. and San Diego County Water Authority February 2023 EXHIBIT B Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project Otay Water District Water Supply Assessment and Verification Report February 2023 Otay Ranch Town Center Redevelopment Project Table of Contents Executive Summary.............................................................................................................. 1 Section 1 - Purpose ............................................................................................................... 5 Section 2 - Findings .............................................................................................................. 6 Section 3 - Project Description ............................................................................................. 9 Section 4 – Otay Water District ........................................................................................... 9 Section 5 – Historical and Projected Water Demands....................................................... 12 5.1 Demand Management (Water Conservation).................................................... Section 6 - Existing and Projected Supplies ....................................................................... 18 6.1 Metropolitan Water District of Southern California 2020 Urban Water Management Plan ...................................................................................... 19 6.1.2 MWD Capital Investment Plan ........................................................ 20 6.2 San Diego County Water Authority Regional Water Supplies ................ 20 6.2.1 Availability of Sufficient Supplies and Plans for Acquiring Additional Supplies .......................................................................................... 22 6.2.1.2 All-American Canal and Coachella Canal Lining Projects... 28 6.2.1.3 Carlsbad Seawater Desalination Project .............................. 31 6.2.2 Water Authority Capital Improvement Program and Financial Information ........................................................................ 33 6.3 Otay Water District ................................................................................... 34 6.3.1 Availability of Sufficient Supplies and Plans for Acquiring Additional Supplies .......................................................................................... 35 6.3.1.1 Imported and Regional Supplies ......................................... 36 6.3.1.2 Recycled Water Supplies .................................................... 38 Section 7 – Conclusion: Availability of Sufficient Supplies ............................................... 43 Source Documents ............................................................................................................... 48 Appendices Appendix A: Otay Ranch Town Center Redevelopment Project Vicinity Map Appendix B: Otay Ranch Town Center Redevelopment Project Development Plan Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 1 Otay Water District Water Supply Assessment and Verification Report February 2023 Otay Ranch Town Center Redevelopment Project Executive Summary The Otay Water District (Otay WD) prepared this Water Supply Assessment and Verification Report (WSA&V Report) at the request of the City of Chula Vista (City) for the Otay Ranch Town Center Redevelopment project. Otay Ranch Town Center Redevelopment Project Overview and Water Use The Otay Ranch Town Center Redevelopment project is located within the jurisdictions of the Otay WD, the San Diego County Water Authority (Water Authority), and the Metropolitan Water District of Southern California (MWD). In order to obtain permanent imported water supply service, land areas are required to be within the jurisdictions of the Otay WD, Water Authority, and MWD. The proposed project entitlement includes a General Plan Amendment, an Otay Ranch General Development Plan Amendment, a Freeway Commercial Sectional Planning Area Amendment, and a tentative map to subdivide the property. The City is having an EIR Addendum prepared for the redevelopment of 58.49 acres of the existing Otay Ranch Town Center (Otay Ranch Town Center Redevelopment project). The existing land use of the Otay Ranch Town Center is designated commercial and will need to be rezoned to accommodate the proposed residential component. The project is located in the northwest portion of the existing Otay Ranch Town Center. The Otay Ranch Town Center is located on the east side of State Route 125, north of Birch Road, south of Olympic Parkway, and west of Eastlake Parkway. The existing Otay Ranch Town Center site includes five lots (Lots 1, 2, 3, 4, and 5) on approximately 87.25 acres. The project proposes to redevelop the northwest portion of Lots 1 and 4, which make up 58.49 acres of the overall site. Within the 58.49 acres, 15.66 acres will be affected. The redevelopment would add 840 residential units, park and plaza space, and rebuild, as ground-floor commercial, approximately 37,200 square-feet of commercial space. The redevelopment will result in no net gain or loss of retail square footage as 37,200 square feet will be removed and rebuilt. The proposed development footprint of 15.66 acres would consist of 11.82 acres of mixed-use area, 0.92 acres of park and plaza space, and 2.92 acres of private streets. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 2 The expected potable water demand for the Otay Ranch Town Center Redevelopment project is 263,807 gpd or about 295.5 AFY. This is 121 AFY higher than the projected demands in the approved Sub-area Master Plan for the project and the Otay WD’s 2015 Water Facilities Master Plan which estimated 155,741 gpd or about 174.5 AFY for commercial use only. The expected recycled water demand is 13,300 gpd or about 14.9 AFY. Recycled water will be used to irrigate common landscaped areas of the proposed mixed-use sites and the park and plaza space. The 121 AFY increase in demand is accounted for through the Accelerated Forecasted Growth demand increment of the Water Authority’s 2020 UWMP. As documented in the Water Authority’s 2020 UWMP, the Water Authority is planning to meet future and existing demands which include the demand increment associated with the accelerated forecasted growth. The Water Authority will assist its member agencies in tracking the environmental documents provided by the agencies that include water supply assessments and verifications reports that utilize the accelerated forecasted growth demand increment to demonstrate supplies for the development. In addition, the next update of the demand forecast for the Water Authority’s 2025 UWMP will be based on SANDAG’s most recently updated forecast, which will include the Project. Therefore, based on the findings from the Otay WD’s 2020 UWMP and the Water Authority’s 2020 UWMP, this project will result in no unanticipated demands. Planned Imported Water Supplies from the Water Authority and MWD The Water Authority and MWD have an established process that ensures supplies are being planned to meet future growth. Any annexations and revisions to established land use plans are captured in the San Diego Association of Governments (SANDAG) updated forecasts for land use planning, demographics, and economic projections. SANDAG serves as the regional, intergovernmental planning agency that develops and provides forecast information. The Water Authority and MWD update their demand forecasts and supply needs based on the most recent SANDAG forecast approximately every five years to coincide with preparation of their UWMP’s. Prior to the next forecast update, local jurisdictions with land use authority may require water supply assessment and/or verification reports for proposed land developments that are not within the Otay WD, Water Authority, or MWD jurisdictions (i.e., pending or proposed annexations) or that have revised land use plans with either lower or higher development intensities than reflected in the existing growth forecasts. Proposed land areas with pending or proposed annexations, or revised land use plans, typically result in creating higher demand and supply requirements than previously anticipated. The Otay WD, Water Authority, and MWD next demand forecast and supply requirements and associated planning documents would then capture any increase or decrease in demands and required supplies as a result of annexations or revised land use planning decisions. An important planning document utilized by MWD, the Water Authority and Otay WD is the Integrated Resources Plan (IRP) which describes an agency’s long-term water plan. MWD’s 2015 IRP (currently being updated) offers an adaptive management strategy to protect the region from future supply shortages. This adaptive management strategy has five components: Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 3 achieve additional conservation savings, develop additional local water supplies, maintain Colorado River Aqueduct supplies, stabilize State Water Project supplies, and maximize the effectiveness of storage and transfer. MWD’s 2015 IRP has a plan for identifying and implementing additional resources that expand the ability for MWD to meet future changes and challenges as necessary to ensure future reliability of supplies. The proper management of these resources help to ensure that the southern California region, including San Diego County, will have adequate water supplies to meet long-term future demands. Another important planning document is the UWMP. The California Urban Water Management Planning Act (Act), which is included in the California Water Code, requires all urban water suppliers within the state to prepare an UWMP and update it every five years. The purpose and importance of the UWMP has evolved since it was first enacted in 1983. State agencies and the public frequently use the document to determine if agencies are planning adequately to reliably meet future demands. As such, UWMPs serve as an important element in documenting supply availability for the purpose of compliance with California Senate Bills 610 and 221, linking water supply sufficiency to large land-use development approval. Agencies must also have a UWMP prepared, pursuant to the Act, in order to be eligible for state funding and drought assistance. MWD’s 2020 UWMP Findings state that MWD has supply capabilities that would be sufficient to meet expected demands from 2025 through 2045. MWD has plans for supply implementation and continued development of a diversified resource mix including programs in the Colorado River Aqueduct, State Water Project, Central Valley Transfers, local resource projects, and in-region storage that enables the region to meet its water supply needs. The County Water Authority Act, Section 5 subdivision 11, states that the Water Authority “as far as practicable, shall provide each of its member agencies with adequate supplies of water to meet their expanding and increasing needs.” As part of preparation of a written water supply assessment report, an agency’s Water Shortage Contingency Plan (WSCP) analysis should be considered in determining sufficiency of supply. In 2018, the Legislature modified the UWMP laws to require a WSCP with specific elements. The WSCP is a document that provides a Supplier with an action plan for a drought or catastrophic water supply shortage. Water Code Section 10632 now requires Suppliers to prepare and adopt a WSCP as part of its UWMP. The new requirements for a WSCP are more prescriptive than previous versions, although many of these elements have long been included in WSCPs, other sections of UWMPs, or as part of a Supplier’s standard procedures and response actions. Many of these actions were implemented by Suppliers during the last drought, to successfully meet changing local water supply challenges. The WSCP will also have statewide utility for DWR, the State Water Board, and the Legislature in addressing extreme drought conditions or statewide calamities that impact water supply. In 2020, the Water Authority’s WSCP contains a detailed shortage contingency analysis that addresses a regional catastrophic shortage situation and drought management. The analysis demonstrates that the Water Authority and its member agencies are taking actions to prepare for and appropriately handle an interruption of water supplies. The WSCP provides the Water Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 4 Authority and its member agencies with a series of potential actions to take when faced with a shortage of imported water supplies from MWD due to prolonged drought or other supply shortfall conditions. The actions will help the region avoid or minimize the impacts of shortages and ensure an equitable allocation of supplies. Water supply agencies throughout California continue to face climate, environmental, legal, and other challenges that impact water source supply conditions, such as the court rulings regarding the Sacramento-San Joaquin Delta issues and reoccurring droughts impacting the western states. Even with these ever-present challenges, the Water Authority and MWD, along with Otay WD fully intend to have sufficient, reliable supplies to serve demands. Otay Water District Water Supply Development Program In evaluating the availability of sufficient water supply, the Otay Ranch Town Center Redevelopment project will be required to participate in the water supply development program being implemented by the Otay WD. This is intended to be achieved through financial participation in several local and/or regional water supply development projects envisioned by the Otay WD. These water supply projects are in addition to those identified as sustainable supplies in the current Water Authority and MWD UWMP, IRP, Master Plans, and other planning documents, and are in response to the regional water supply issues. These new water supply projects are not currently developed and are in various stages of the planning process. Imported water supplies along with the development of these additional Otay WD water supply development projects supplies are intended to increase water supplies to serve the Otay Ranch Town Center Redevelopment project water supply needs and that of other similar development projects. The Otay WD water supply development program includes but is not limited to projects such as the Middle Sweetwater River Basin Groundwater Well project, the Rancho del Rey Groundwater Well Project and the Otay Mesa Lot 7 Groundwater Well Project. The Water Authority and MWD’s next forecasts and supply planning documents would capture any increase in water supplies resulting from any new water resources developed by the Otay WD. Findings The WSA&V Report identifies and describes the processes by which water demand projections for the proposed Otay Ranch Town Center Redevelopment project will be fully included in the water demand and supply forecasts of the Urban Water Management Plans and other water resources planning documents of the Water Authority and MWD. Water supplies necessary to serve the demands of the proposed project, along with existing and other projected future users, as well as the actions necessary and status to develop these supplies, have been identified in the Otay Ranch Town Center Redevelopment project WSA&V Report and will be included in the future water supply planning documents of the Water Authority and MWD. This WSA&V Report includes, among other information, an identification of existing water supply entitlements, water rights, water service contracts, water supply projects, or Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 5 agreements relevant to the identified water supply needs for the proposed Otay Ranch Town Center Redevelopment project. The WSA&V Report demonstrates and documents that sufficient water supplies are planned for and are intended to be available over a 20-year planning horizon, under normal conditions and in single and multiple dry years to meet the projected demand of the Otay Ranch Town Center Redevelopment project and the existing and other planned development projects to be served by the Otay WD. Accordingly, after approval of a WSA&V Report for the Otay Ranch Town Center Redevelopment project by the Otay WD Board of Directors (Board), the WSA&V Report may be used to comply with the requirements of the legislation enacted by Senate Bills 610 and 221 as follows: 1. Senate Bill 610 Water Supply Assessment: The Otay WD Board approved WSA&V Report may be incorporated into the California Environmental Quality Act (CEQA) Environmental Impact Report (EIR) compliance process for the Otay Ranch Town Center Redevelopment project as a water supply assessment report consistent with the requirements of the legislation enacted by SB 610. The City, as lead agency under CEQA for the Otay Ranch Town Center Redevelopment Project EIR Addendum and Alternatives, may cite the approved WSA&V Report as evidence that a sufficient water supply is planned for and is intended to be made available to serve the Otay Ranch Town Center Redevelopment project. 2. Senate Bill 221 Water Supply Verification: The Otay WD Board approved WSA&V Report may be incorporated into the City’s Tentative Map approval process for the Otay Ranch Town Center Redevelopment project as a water supply verification report, consistent with the requirements of the legislation enacted by SB 221. The City, within their process of approving the Otay Ranch Town Center Redevelopment project Revised Tentative Map, may cite the approved WSA&V Report as verification of intended sufficient water supply to serve the Otay Ranch Town Center Redevelopment project. Section 1 - Purpose The City is having an environmental impact report addendum (EIR Addendum) prepared for the development of the Otay Ranch Town Center Redevelopment 58.49-acre project. The project is located in the northwest portion of the existing Otay Ranch Town Center. The Otay Ranch Town Center is located is located on the east side of State Route 125, north of Birch Road, south of Olympic Parkway, and west of Eastlake Parkway. The City requested that the Otay WD prepare a Water Supply Assessment and Verification (WSA&V) Report for the Otay Ranch Town Center Redevelopment project. This WSA&V Report is being prepared for the proposed project concurrent with the General Plan Amendment, the Otay Ranch General Development Plan Amendment, the Freeway Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 6 Commercial Sectional Planning Area Amendment, rezone and tentative map processing through the City. The Otay Ranch Town Center Redevelopment project description is provided in Section 3 of this WSA&V Report. This WSA&V Report for the Otay Ranch Town Center Redevelopment project has been prepared by the Otay WD in consultation with Dexter Wilson Engineering,Inc., the Water Authority, and the City pursuant to Public Resources Code Section 21151.9 and California Water Code Sections 10631, 10656, 10910, 10911, 10912, and 10915 referred to as Senate Bill (SB) 610 and Business and Professions Code Section 11010 and Government Code Sections 65867.5, 66455.3, and 66473.7 referred to as SB 221. SB 610 and SB 221 amended state law, effective January 1, 2002, is intended to improve the link between the information on water supply availability and certain land use decisions made by cities and counties. SB 610 requires that the water purveyor of the public water system prepare a water supply assessment to be included in the CEQA documentation and approval process of certain proposed projects. SB 221 requires affirmative written verification from the water purveyor of the public water system that sufficient water supplies are to be available for certain residential subdivisions of property prior to approval of a tentative map. The requirements of SB 610 and SB 221 are being addressed by this WSA&V Report. The City also requested, since the requirements of SB 610 and SB 221 are substantially similar, that Otay WD prepare both the water supply assessment and verification concurrently. This WSA&V Report evaluates water supplies that are planned to be available during normal, single dry year, and multiple dry water years during a 20-year planning horizon to meet existing demands, expected demands of the Otay Ranch Town Center Redevelopment project, and reasonably foreseeable planned future water demands to be served by Otay WD. The Otay WD Board of Directors approved WSA&V Report is planned to be used by the City in its evaluation of the Otay Ranch Town Center Redevelopment project under CEQA approval process procedures. Section 2 - Findings The Otay WD prepared this WSA&V Report at the request of the City for Otay Ranch Town Center Redevelopment project. The Otay Ranch Town Center Redevelopment project is located within the jurisdictions of the Otay WD, the Water Authority, and MWD. To obtain permanent imported water supply service, land areas are required to be within the jurisdictions of the Otay WD, Water Authority, and MWD to utilize imported water supply. The expected potable water demand for the Otay Ranch Town Center Redevelopment project is 263,807 gpd or about 295.5 AFY. This is 121 AFY higher than the projected demands in the approved Sub-area Master Plan for the project and the Otay WD’s 2015 Water Facilities Master Plan which estimated 155,741 gpd or about 174.5 AFY for commercial use only. The Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 7 expected recycled water demand is 13,300 gpd or about 14.9 AFY. Recycled water will be used to irrigate common landscaped areas of the proposed mixed-use sites and the park and plaza space. The 121 AFY increase in demand is accounted for through the Accelerated Forecasted Growth demand increment of the Water Authority’s 2020 UWMP. As documented in the Water Authority’s 2020 UWMP, the Water Authority is planning to meet future and existing demands which include the demand increment associated with the accelerated forecasted growth. The Water Authority will assist its member agencies in tracking the environmental documents provided by the agencies that include water supply assessments and verifications reports that utilize the accelerated forecasted growth demand increment to demonstrate supplies for the development. In addition, the next update of the demand forecast for the Water Authority’s 2025 UWMP will be based on SANDAG’s most recently updated forecast, which will include the Project. Therefore, based on the findings from the Otay WD’s 2020 UWMP and the Water Authority’s 2020 UWMP, this project will result in no unanticipated demands. The Water Authority and MWD have an established process that ensures supplies are being planned to meet future growth. Any annexations and revisions to established land use plans are captured in the San Diego Association of Governments (SANDAG) updated forecasts for land use planning, demographics, and economic projections. SANDAG serves as the regional, intergovernmental planning agency that develops and provides forecast information. The Water Authority and MWD update their demand forecasts and supply needs based on the most recent SANDAG forecast (approximately every five years) to coincide with preparation of their urban water management plans. Prior to the next forecast update, local jurisdictions may require water supply assessment and/or verification reports for proposed land developments that are not within the Otay WD, Water Authority, or MWD jurisdictions (i.e. pending or proposed annexations) or that have revised land use plans with lower or higher land use intensities than reflected in the existing growth forecasts. Proposed land areas with pending or proposed annexations, or revised land use plans, typically result in creating higher demand and supply requirements than anticipated. The Otay WD, the Water Authority, and MWD next demand forecast and supply requirements and associated planning documents would then capture any increase or decrease in demands and required supplies as a result of annexations or revised land use planning decisions. This process is utilized by the Water Authority and MWD to document the water supplies necessary to serve the demands of the Otay Ranch Town Center Redevelopment project, along with existing and other projected future users, as well as the actions necessary to develop any required water supplies. Through this process, it is assured that the necessary demand and supply information is identified and incorporated within the water supply planning documents of the Water Authority and MWD. This WSA&V Report includes, among other information, an identification of existing water supply entitlements, water rights, water service contracts, proposed water supply projects, and Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 8 agreements relevant to the identified water supply needs for the proposed Otay Ranch Town Center Redevelopment project. This WSA&V Report incorporates by reference, the current Urban Water Management Plans and other water resources planning documents of the Otay WD, the Water Authority, and MWD. The Otay WD prepared this WSA&V Report to assess and document that sufficient water supplies are planned for and are intended to be acquired to meet projected water demands of the Otay Ranch Town Center Redevelopment project as well as existing and other reasonably foreseeable planned development projects within the Otay WD for a 20-year planning horizon, in normal supply years and in single dry and multiple dry years. The Otay Water District 2020 UWMP includes a water conservation component to comply with Senate Bill 7 of the Seventh Extraordinary Session (SBX 7-7), which became effective February 3, 2010. This law was the water conservation component to the Delta legislation package, and the goal was to achieve a 20 percent statewide reduction in urban per capita water use in California by December 31, 2020. Specifically, SBX 7-7 from this Extraordinary Session required each urban retail water supplier to develop urban water use targets to help meet the 20 percent reduction goal by 2020 (20x2020), and an interim water reduction target by 2015. Otay WD adopted Method 1 to set its 2015 interim and 2020 water use targets. Method 1 requires setting the 2020 water use target to 80 percent of baseline per capita water use target as provided in the State’s 20x2020 Water Conservation Plan. The Otay WD met both the 2015 target of 172 gpcd (2015 actual was 124 gpcd) and its 2020 gpcd target (80 percent of baseline) of 153 gpcd (2020 actual was 108 gpcd). The Otay WD’s per capita water use has been declining since before 2015. The decline in per capita water use is due to drought water use restrictions and increased water costs. Otay WD’s effective water use awareness campaign and the enhanced conservation mentality of its customers has resulted in long-term carryover of reduced consumption rates. Based on a normal water supply year, the five-year increments for a 20-year projection indicate projected potable and recycled water supply is being planned for and is intended to be acquired to meet the estimated water demand targets of the Otay WD (37,965 acre-feet (ac-ft) in 2025 to 50,565 ac-ft in 2045) per the Otay WD 2020 UWMP. Based on dry year forecasts, the estimated water supply is also being planned for and is intended to be acquired to meet the projected water demand, during single dry and multiple dry year scenarios. On average, the dry-year demands are about eight percent higher than the normal year demands. The Otay WD recycled water supply is assumed to be drought-proof and not subject to reduction during dry periods. Together, these findings assess, demonstrate, and document that sufficient water supplies are planned for and are intended to be acquired for the Otay Ranch Town Center Redevelopment project. In addition, the actions necessary to develop these supplies are and will be further documented, to serve the proposed project and the existing and other foreseeable planned development projects within the Otay WD in both normal and single and multiple dry year forecasts for a 20-year planning horizon. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 9 Section 3 - Project Description The Otay Ranch Town Center Redevelopment project is located in the northwest portion of the existing Otay Ranch Town Center. The Otay Ranch Town Center is located is located on the east side of State Route 12, north of Birch Road, south of Olympic Parkway, and west of Eastlake Parkway.in the County of San Diego. Refer to Appendix A for a vicinity map of the proposed Otay Ranch Town Center Redevelopment project. The project is proposed to be located on 58.49-acres. Although the proposed development is located within the City of Chula Vista and subject to the City of Chula Vista land use jurisdiction, the Otay WD is the potable and recycled water purveyor. The Otay Ranch Town Center Redevelopment project is within the jurisdictions of the Otay WD, the Water Authority, and MWD. The Otay Ranch Town Center Redevelopment project proposes 15.66 acres would consist of 11.82 acres of mixed-use area, 0.92 acres of park and plaza space, and 2.92 acres of private streets. The City has discretionary authority on land use decisions for the Otay Ranch Town Center Redevelopment project and can establish actions and/or permit approval requirements. The projected potable water demands associated with the Otay Ranch Town Center Redevelopment Project EIR Addendum has considered the anticipated County discretionary actions and/or permit approvals and are incorporated into and used in this WSA&V Report. The water demands for the proposed Otay Ranch Town Center Redevelopment project are included in the projected water demand estimates provided in Section 5 – Historical and Projected Water Demands. Section 4 – Otay Water District The Otay WD is a municipal water district formed in 1956 pursuant to the Municipal Water District Act of 1911 (Water Code §§ 71000 et seq.). The Otay WD joined the Water Authority as a member agency in 1956 to acquire the right to purchase and distribute imported water throughout its service area. The Water Authority is an agency responsible for the wholesale supply of water to its 24 public agency members in San Diego County. The Otay WD currently meets all its potable demands with imported treated water from the Water Authority. The Water Authority is the agency responsible for the supply of imported water into San Diego County through its membership in MWD. The Water Authority currently obtains about 18% of its imported supply from MWD but is in the process of further diversifying its available supplies. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 10 The Otay WD provides water service to residential, commercial, industrial, and agricultural customers, and for environmental and fire protection uses. In addition to providing water throughout its service area, Otay WD also provides sewage collection and treatment services to a portion of its service area known as the Jamacha Basin. The Otay WD also owns and operates the Ralph W. Chapman Water Reclamation Facility (RWCWRF) which has an effective treatment capacity of 1.2 million gallons per day (mgd) or about 1,300-acre feet per year to produce recycled water. On May 18, 2007, an additional source of recycled water supply of up to 6 mgd, or about 6,720-acre feet per year, became available to Otay WD from the County of San Diego’s South Bay Water Reclamation Plant (SBWRP). The Otay WD jurisdictional area is generally located within the south-central portion of San Diego County and includes approximately 125 square miles. The Otay WD serves portions of the unincorporated communities of southern El Cajon, La Mesa, Rancho San Diego, Jamul, Spring Valley, Bonita, and Otay Mesa, the eastern portion of the County of Chula Vista and a portion of the County of San Diego on Otay Mesa. The Otay WD jurisdiction boundaries are roughly bounded on the north by the Padre Dam Municipal Water District, on the northwest by the Helix Water District, and on the west by the South Bay Irrigation District (Sweetwater Authority) and the County of San Diego. The southern boundary of Otay WD is the international border with Mexico. The planning area addressed in the Otay WD 2015 WFMP Update and the Otay WD 2020 UWMP includes both the land within the jurisdictional boundary of the Otay WD and those areas outside of the present Otay WD boundaries considered to be in the Area of Influence of the Otay WD. Figure 3-1 contained within the Otay WD 2020 UWMP shows the jurisdictional boundary of the Otay WD and the Area of Influence. The planning area is approximately 143 square miles, of which approximately 125 square miles are within the Otay WD current boundaries and approximately 18 square miles are in the Area of Influence. The area east of Otay WD is rural and currently not within any water purveyor jurisdiction and potentially could be served by the Otay WD in the future if the need for imported water becomes necessary, as is the case for the Area of Influence. The City of Chula Vista, the City of San Diego, and the County of San Diego are the three land use planning agencies within the Otay WD jurisdiction. Forecast data for land use planning, demographics, economic projections, population, and the future rate of growth within Otay WD were obtained from the San Diego Association of Governments (SANDAG). SANDAG serves as the regional, intergovernmental planning agency that develops and provides forecast information through the year 2050. Population growth within the Otay WD service area is expected to increase from the 2020 figure of 225,870 to an estimated 272,353 by 2045. Land use information used to develop water demand projections are based upon Specific or Sectional Planning Areas, the Otay Ranch General Development Plan/Sub- regional Plan, East Otay Mesa Specific Plan Area, San Diego County Community Plans, and County of San Diego, County of Chula Vista, and County of San Diego General Plans. The Otay WD long-term historic growth rate has been approximately 4 percent. The growth rate had slowed due to economic conditions and is expected to slow as the inventory of Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 11 developable land is diminished. The SANDAG forecast shows an average annual growth rate from 2025 through 2045 of approximately 2.5 percent. Climatic conditions within the Otay WD service area are characteristically Mediterranean near the coast, with mild temperatures year-round. Inland areas are both hotter in summer and cooler in winter, with summer temperatures often exceeding 90 degrees and winter temperatures occasionally dipping to below freezing. Most of the region’s rainfall occurs during the months of December through March. Average annual rainfall is approximately 10.08 inches per year. Urban Water Management Plan In accordance with the California Urban Water Management Planning Act and recent legislation, the Otay WD Board of Directors adopted an UWMP in June 2021 and subsequently submitted the plan to the California Department of Water Resources (DWR). As required by law, the Otay WD 2020 UWMP includes projected water supplies required to meet future demands through 2045. In accordance with Water Code Section 10910 (c)(2) and Government Code Section 66473.7 (c)(3), information from the Otay WD 2020 UWMP along with supplemental information from the Otay WD WFMP Update have been utilized to prepare this WSA&V Report and are incorporated herein by reference. The state Legislature passed Senate Bill 7 as part of the Seventh Extraordinary Session (SBX 7-7) on November 10, 2009, which became effective February 3, 2010. This new law was the water conservation component to the Delta legislation package. The goal of this legislation was to achieve a 20 percent statewide reduction in urban per capita water use in California by December 31, 2020. Specifically, SBX 7-7 from this Extraordinary Session requires each urban retail water supplier to develop urban water use targets to help meet the 20 percent reduction goal by 2020 (20x2020), and an interim water reduction target by 2015. Urban retail water suppliers were required to report interim compliance in 2015, followed by actual compliance in 2020. Failure to meet adopted targets would result in the ineligibility of a water supplier to receive grants or loans administered by the State. Otay WD set its 2015 interim and 2020 water use targets by using the method (Method 1 as detailed in the State’s 20x2020 Water Conservation Plan) that required setting the 2020 water use target to 80 percent of baseline per capita water use. The Otay WD met both the 2015 target of 172 gpcd with an actual water use of 124 gpcd and the 2020 target of 153 gpcd with an actual water use of 108 gpcd. The Otay WD’s recent per capita water use has been declining steadily. The decline in per capita water use is due to periods of statewide mandatory water use restrictions, increases in water rates that have further incentivized water conservation efforts, and economic conditions. Otay WD’s effective water use awareness campaign and the enhanced conservation mentality of its customers has resulted in long-term carryover of these reduced consumption rates. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 12 Section 5 – Historical and Projected Water Demands The projected demands for Otay WD are based on Specific or Sectional Planning Areas, the Otay Ranch General Development Plan/Sub-regional Plan, the East Otay Mesa Specific Plan Area, San Diego County Community Plans, and County of San Diego, County of Chula Vista, and County of San Diego General Plans. This land use information is also used by SANDAG as the basis for its most recent forecast data. This land use information was utilized for the preparation of the Otay WD 2015 WFMP Update and Otay WD 2020 UWMP to develop the forecasted demands and supply requirements. In 1994, the Water Authority selected the Institute for Water Resources-Municipal and Industrial Needs (MAIN) computer model to forecast municipal and industrial water use for the San Diego region. The MAIN model uses demographic and economic data to project sector-level water demands (i.e., residential and non-residential demands). This econometric model has over a quarter of a century of practical application and is used by many cities and water agencies throughout the United States. The Water Authority’s version of the MAIN model was modified to reflect the San Diego region’s unique parameters and is known as CWA-MAIN. The foundation of the water demand forecast is the underlying demographic and economic projections. This was a primary reason why, in 1992, the Water Authority and SANDAG entered into a Memorandum of Agreement (MOA) in which the Water Authority agreed to use the SANDAG current regional growth forecast for water supply planning purposes. In addition, the MOA recognizes that water supply reliability must be a component of San Diego County’s regional growth management strategy required by Proposition C, as passed by the San Diego County voters in 1988. The MOA ensures a strong linkage between local general plan land use forecasts and water demand projections and resulting supply needs for the San Diego region. The Water Authority projections of future water demand for the Otay WD are prepared using the CWA-MAIN model and use the most recent population forecast data for the Otay WD’s service area from SANDAG, the SANDAG Series 14 (Version 17) population projections adopted by SANDAG’s Board of Directors on October 25, 2019. SANDAG’s demographic forecast is based on U.S. Census data, annual population and housing estimates produced by California Department of Finance and local inputs gathered from the region’s 18 incorporated cities and unincorporated county areas. This combination of data provides sufficient information to project future demands and maintain consistency with the Otay WD’s wholesale provider. The municipal and industrial forecast also includes an updated accounting of projected conservation savings. For the Water Authority’s 2020 regional demand forecast, conservation water savings were estimated based on long term quantifiable actions. The Alliance for Water Efficiency Water Conservation Tracking Tool (AWE Tool) is listed in the DWR 2020 UWMP Guidebook as an application to assist water purveyors in developing savings estimates (DWR, Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 13 2020). This industry standard planning tool was used to provide granular estimates of existing and future “passive” or code-based water savings and “active” savings resulting from the implementation of demand management programs. Key water savings assumptions are derived based on historical program efficiencies, current regional water savings assumptions that serve as the basis for regional incentives, and efficiency estimates by activity type that are contained in the AWE Tool library. Future active conservation savings are set at the 2020 level of conservation program activity moving forward, absent a large-scale turf replacement program and state-mandated water-use reductions. The passive conservation element includes estimated future savings from appliance standards and code changes, as well as savings from the 2015 Model Water Efficient Landscape Ordinance (MWELO; DWR, 2015). An 80% MWELO compliance level was assumed on new residential development and a majority of this savings was assumed to continue over the UWMP planning horizon. The agricultural sector model equations were developed using data provided by Water Authority member agencies, SANDAG, and County Department of Agricultural Weights and Measures. Variables used in the agricultural model include irrigated acreage in the Water Authority’s service area, distribution of acreage among primary crop types, price of water, general macroeconomic conditions, and water requirements by crop type. SANDAG’s projection of agricultural land conversions to other land use categories provides the long-term trend in acreage used to forecast agricultural water use. The total agricultural forecast is derived by multiplying projections of future acreage by average water use per acre, which assumes the currently prevailing distribution of crop acreages, long-term normal weather and economic trends, and expected growth in the Water Authority’s wholesale water rates. The Water Authority and MWD update their water demand and supply projections within their jurisdictions utilizing the SANDAG most recent growth forecast to project future water demands. This provides for the important strong link between demand and supply projections to the land use plans of the cities and the county. This provides for consistency between the retail and wholesale agencies water demand projections, thereby ensuring that adequate supplies are and will be planned for the Otay WD existing and future water users. Existing land use plans, any revisions to land use plans, and annexations are captured in the SANDAG updated forecasts. The Water Authority and MWD update their demand forecasts based on the SANDAG most recent forecast approximately every five years to coincide with preparation of their urban water management plans. Prior to the next forecast update, local jurisdictions may require water supply assessment and/or verification reports consistent with Senate Bills 610 and 221 for proposed land use developments that either have pending or proposed annexations into the Otay WD, Water Authority, and MWD or that have revised land use plans than originally anticipated. The Water Authority and MWD’s next forecasts and supply planning documents would then capture any increase or decrease in demands caused by annexations or revised land use plans. In evaluating the availability of sufficient water supply, the Otay Ranch Town Center Redevelopment project proponents are required to participate in the development of alternative water supply project(s). This can be achieved through payment of the New Water Supply Fee adopted by the Otay WD Board in May 2010. These water supply projects are in Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 14 addition to those identified as sustainable supplies in the current Water Authority and MWD UWMP, IRP, Master Plans, and other planning documents. These new water supply projects are in response to the regional water supply issues related to the Sacramento-San Joaquin Delta and the current ongoing western states drought conditions. These additional water supply projects are not currently developed and are in various stages of the planning process. A few examples of these alternative water supply projects include the Middle Sweetwater River Basin Groundwater Well project, the Rancho del Rey Groundwater Well Project and the Otay Mesa Lot 7 Groundwater Well Project. The Water Authority and MWD next forecast and supply planning documents would capture any increase in water supplies resulting from verifiable new water resources developed by the Otay WD. In addition, MWD’s 2020 UWMP identified potential reserve supplies in the supply capability analysis which could be available to meet any unanticipated demands. The Water Authority and MWD’s next forecasts and supply planning documents would capture any increase in necessary supply resources resulting from any new water supply resources. Demand Methodology The Otay WD water demand projection methodology in the WFMP Update utilizes a component land use approach. This is done by applying representative values of water use to the acreage of each land use type and then aggregating these individual land use demand projections into an overall total demand for the Otay WD. This is the water duty method, and the water duty is the amount of water used in gallons per day per acre per year. This approach is used for all the land use types except residential development where a demand per dwelling unit was applied. In addition, commercial and industrial water use categories are further subdivided by type including separate categories for golf courses, schools, jails, prisons, hospitals, etc. where specific water demands are established. To determine water duties for the various types of land use, the entire water meter database of the Otay WD is utilized and sorted by the appropriate land use types. The metered consumption records are then examined for each of the land uses, and water duties are determined for the various types of residential, commercial, industrial, and institutional land uses. For example, the water duty factors for commercial and industrial land uses are estimated using 1,785 and 893 gallons per day per acre (gpd/acre) respectively. Residential water demand is established based on the same data but computed on a per-dwelling unit basis. This focus is to ensure that, for each of the residential land use categories (very low, low, medium, and high densities), the demand criteria used is adequately represented based upon actual data. This method is used because residential land uses constitute a substantial percentage of the total developable planning area of the Otay WD. The WFMP Update calculates potable water demand by taking the gross acreage of a site and applying a potable water reduction factor (PWRF), which is intended to represent the percentage of acreage to be served by potable water and that is not served by recycled water for irrigation. For industrial land use, for example, the PWRF is 0.95 (i.e., 95% of the site is assumed to be served by potable water, 5% of the site is assumed to be irrigated with recycled Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 15 water, if available). The potable net acreage is then multiplied by the unit demand factor corresponding to its respective land use. This approach is used in the WFMP Update for all the land use types except residential development where a demand per dwelling unit is applied. In addition, commercial and industrial water use categories are further subdivided by type including separate categories for golf courses, schools, jails, prisons, hospitals, etc. where specific water demands are allocated. Otay Water District Projected Demand By applying the established water duties to the proposed land uses, the projected water demand for the entire Otay WD planning area at ultimate development is determined. Projected water demands for the intervening years were determined using growth rate projections consistent with data obtained from SANDAG and the experience of the Otay WD. The historical and projected potable water demands for Otay WD are shown in Table 1. Table 1 Historical and Projected Potable Water Fiscal Year Demands (acre-feet) Water Use Sectors 2020 2025 2030 2035 2040 2045 Single Family Residential 14,040 16,482 16,619 16,879 17,373 17,920 Multi-Family Residential 3,807 4,101 4,835 5,189 6,010 7,618 Commercial, Industrial & Institutional 4,728 5,129 5,803 6,892 7,990 8,608 Landscape 4,121 4,065 4,600 5,463 6,333 6,823 AFG* – Sunbow II, Ph.3 3 84.7 84.7 84.7 84.7 84.7 84.7 AFG* – ORTC Redevelopment 121 121 121 121 121 Near-term Annexations 1,788 1,788 1,788 1,788 1,788 1,788 Other 1,291 1,900 2,073 2,325 2,273 2,508 Totals 29,860 33,671 35,924 38,742 41,973 45,471 Source: Otay Water District 2020 UWMP. *Accelerated Forecasted Growth Increment Otay Ranch Town Center Redevelopment Project Proposed Projected Water Demand Using the land use demand projection methodology noted above, the projected potable and recycled water demands for the proposed Otay Ranch Town Center Redevelopment project are shown in Table 2 and Table 3, respectively. The projected potable water demand is 212,994 gpd or about 238.6 AFY. The projected recycled water demand is 13,300 gpd or about 14.9 AFY. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 16 Table 2 Otay Ranch Town Center Redevelopment Project Projected Potable Water Annual Average Demands Table 3 Otay Ranch Town Center Redevelopment Project Projected Recycled Water Annual Average Demands 5.1 Demand Management (Water-Use Efficiency) Demand management, or water-use efficiency is a critical part of the Otay WD’s 2020 UWMP and its long-term strategy for meeting the water supply needs of its customers. Water conservation is frequently the lowest cost resource available to any water agency. The Otay WD’s water conservation program objectives are to: • Reduce the demand for more expensive, imported water. • Ensure a reliable water supply. The Otay WD is committed to reducing the state’s water demands, diversifying local water supply, and encouraging its customer to make conservation a way of life. In addition to meeting customer demands during a drought, the Otay WD consistently advocates for state policies and legislation that include supply development and water-use efficiency. The Otay WD continues to work closely with the Water Authority, the Association of California Water Agencies, and other water agencies in the region to ensure that the targets and measures in the State Water Resources Control Board’s (SWRCB) long-term framework support a balanced approach and Land Use Gross Acres Quantity, Units Water Duty Factor Total Average Water Demand, GPD Existing Commercial 71.59 --- 1,607 gpd/ac 115,045 MF Residential 11.82 840 DU 170 gpd/DU 142,800 Commercial Retail 3.71 --- 1,607 gpd/ac 5,962 TOTAL 263,807 Land Use Gross Acres Irrigated Acres Water Duty Factor Total Average Water Demand, GPD Existing Commercial 42.83 4.3 1,900 gpd/ac 8,170 Mixed-Use/MF Residential 11.82 1.8 1,900 gpd/ac 3,420 Park/Plaza 0.92 0.9 1,900 gpd/ac 1,710 TOTAL 13,300 Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 17 reflect local water supply investments and conditions. Water conservation programs are developed and implemented on the premise that water conservation increases the local water supply by reducing the demand on available imported supply. This premise is vital to the optimal utilization of a region's water supply resources. The Otay WD participates in many water conservation programs designed and typically operated on a shared cost-participation program basis among the Water Authority, MWD, and their member agencies. The demands shown in Tables 1 and 2 take into account implementation of water conservation measures within Otay WD. The Otay WD has implemented water conservation programs and provided services to its customers to promote water-use efficiencies and water savings. As a member of the Water Authority, Otay WD also benefits from regional programs performed on behalf of its member agencies. In partnership with the Water Authority, the County of San Diego, County of San Diego, County of Chula Vista, and developers, the Otay WD water-use efficiency efforts are expected to grow and expand. The resulting savings directly relate to additional available water in the San Diego County region for beneficial use within the Water Authority service area, including the Otay WD. Water conservation and water-use efficiency measures or programs practiced by the Otay WD include the following: Supervisory Control and Data Acquisition System The Otay WD has implemented and operates a Supervisory Control and Data Acquisition (SCADA) system to control, monitor, and collect data regarding the operation of the water system. The major facilities that have SCADA capabilities are the water-flow control supply sources, transmission network, pumping stations, and water storage reservoirs. The SCADA system allows for many and varied useful functions. Some of the functions they provide for the Otay WD operations personnel are the ability to monitor the water supply source flow rates, reservoir levels, turn on or off pumping units, etc. The SCADA system aids in the prevention of water reservoir overflow events and increases energy efficiency. Water Conservation Ordinance California Water Code Sections 375 et seq. permit public entities, which supply retail water to adopt and enforce a water conservation program to reduce the quantity of water used by the customers, resulting in the conservation of water supplies for that public entity. In 2021, the Otay WD Board of Directors revised the existing water conservation ordinance to reflect the Water Shortage Contingency Plan (WSCP) created in conjunction with the Otay WD’s 2020 UWMP. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 18 The Otay WD water conservation ordinance specifies that the conditions prevailing in the San Diego County area require that the available water resources be put to maximum beneficial use to the extent to which they are capable, and that the waste or unreasonable use, or unreasonable method of use, of water be prevented. In addition, the ordinance encourages the conservation of such water with a view to the maximum reasonable and beneficial use thereof in the interests of the people of the Otay WD and for the public welfare. Otay WD continues to promote water-use efficiency and conservation at community and business events, including those involving developers in its service area. Conservation programs are promoted through outreach at community and business events, bill inserts, articles in the Otay WD's quarterly customer Pipeline newsletter, direct mailings to Otay WD customers, the Otay WD's webpage and social media platforms, and through the Water Authority's marketing efforts. In addition, Otay WD, working with the Water Authority and MWD, manages a number of conservation programs. Listed below are some of the programs available to residential and commercial, industrial and institutional customers: • Landscape Water Use Evaluations & On-site Irrigation Surveys • Water Smart Landscape Makeover Program • Rotating Nozzles Rebates • Residential Weather-Based Irrigation Controller (WBIC) Rebates • WaterSmart Contractor Incentive Program • Agricultural Water Management Program • Residential High Efficiency Clothes Washers Rebates • Residential Ultra Low Flow and High Efficiency Toilet Rebates • School Education Programs - the Otay WD funds school tours of the Water Conservation Garden and school assemblies, co-funds Splash Labs, and maintains school-age-appropriate water-themed books, DVDs, and videos. Section 6 - Existing and Projected Supplies The Otay WD currently does not have an independent raw or potable water supply source. The Otay WD is a member public agency of the Water Authority and the Water Authority is a member public agency of MWD. The statutory relationships between the Water Authority and its member agencies, and MWD and its member agencies, respectively, establish the scope of the Otay WD entitlement to water from these two agencies. The Water Authority currently supplies the Otay WD with 100 percent of its potable water through two delivery pipelines, Pipeline No. 4 of the Second San Diego Aqueduct and the Helix Flume Connection Pipeline. The Water Authority in turn, currently purchases the majority of its water from MWD. Due to the Otay WD reliance on these two agencies, this WSA&V Report includes referenced documents that contain information on the existing and Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 19 projected supplies, supply programs, and related projects of the Water Authority and MWD. The Otay WD, Water Authority, and MWD are actively pursuing programs and projects to further diversify their water supply resources. The description of local recycled water supplies available to the Otay WD is also discussed below. 6.1 Metropolitan Water District of Southern California 2020 Urban Water Management Plan MWD has prepared its 2020 UWMP which was adopted on May 19, 2021. The 2020 UWMP provides MWD’s member agencies, retail water utilities, cities, and counties within its service area with, among other things, a detailed evaluation of the supplies necessary to meet future demands, and an evaluation of reasonable and practical efficient water uses, recycling, and conservation activities. During the preparation of the 2020 UWMP, MWD utilized the previous SANDAG regional growth forecast in calculating regional water demands for the Water Authority service area. 6.1.1 Availability of Sufficient Supplies and Plans for Acquiring Additional Supplies MWD is a wholesale supplier of water to its member public agencies and obtains its supplies from two primary sources: the Colorado River, via the Colorado River Aqueduct (CRA), which it owns and operates, and Northern California, via the State Water Project (SWP). The 2020 UWMP documents the availability of these existing supplies and additional supplies necessary to meet future demands. MWD’s IRP identifies a mix of resources (imported and local) that, when implemented, will provide 100 percent reliability for full-service demands through the attainment of regional targets set for conservation, local supplies, State Water Project supplies, Colorado River supplies, groundwater banking, and water transfers. MWD’s 2015 IRP Update describes an adaptive management strategy to protect the region from future supply shortages. This adaptive management strategy has five components: achieve additional conservation savings, develop additional local water supplies, maintain Colorado River Aqueduct supplies, stabilize State Water Project supplies, and maximize the effectiveness of storage and transfer. MWD’s 2015 IRP Update has a plan for identifying and implementing additional resources that expand the ability for MWD to meet future changes and challenges as necessary to ensure future reliability of supplies. The proper management of these resources help to ensure that the southern California region, including San Diego County, will have adequate water supplies to meet long-term future demands. In May, MWD adopted its 2020 UWMP in accordance with state law. The resource targets included in the preceding 2015 IRP Update serve as the foundation for the planning assumptions used in the 2020 UWMP. MWD’s 2020 UWMP contains a water supply Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 20 reliability assessment that includes a detailed evaluation of the supplies necessary to meet demands over a 20-year period in average, single dry year, and multiple dry year periods. As part of this process, MWD also uses the current SANDAG regional growth forecast in calculating regional water demands for the Water Authority’s service area. As stated in MWD’s 2020 UWMP, the plan may be used as a source document for meeting the requirements of SB 610 and SB 221 until the next scheduled update is completed in 5 years (2025). The 2020 UWMP includes a “Justifications for Supply Projections” in Appendix A.3, which provides detailed documentation of the planning, legal, financial, and regulatory basis for including each source of supply in the plan. A copy of MWD’s 2020 UWMP can be found on the internet at the following site address: https://www.mwdh2o.com/how-we-plan/ The UWMP updates for both MWD and the Water Authority include the increase in demand projections included in SANDAG’s Series 14 Update and from the projections from Otay WD 2015 WFMP Update. Water supply agencies throughout California continue to face climate, environmental, legal, and other challenges that impact water source supply conditions, such as the court rulings regarding the Sacramento-San Joaquin Delta and the current western states drought conditions. These challenges will continue to be present indefinitely. Even with these ongoing challenges, MWD, the Water Authority and the Otay WD fully intend to have sufficient, reliable supplies to serve demands. 6.1.2 MWD Capital Investment Plan MWD prepares a Capital Investment Plan as part of its annual budget approval process. The cost, purpose, justification, status, progress, etc. of MWD’s infrastructure projects to deliver existing and future supplies are documented in the Capital Investment Plan. The financing of these projects is addressed as part of the annual budget approval process. MWD’s Capital Investment Plan includes a series of projects identified from MWD studies of projected water needs, which, when considered along with operational demands on aging facilities and new water quality regulations, identify the capital projects needed to maintain infrastructure reliability and water quality standards, improve efficiency, and provide future cost savings. All projects within the Capital Investment Plan are evaluated against an objective set of criteria to ensure they are aligned with the MWD’s goals of supply reliability and quality. 6.2 San Diego County Water Authority Regional Water Supplies The Water Authority has adopted plans and is taking specific actions to develop adequate water supplies to help meet existing and future water demands within the San Diego region. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 21 This section contains details on the supplies being developed by the Water Authority. A summary of recent actions pertaining to development of these supplies includes: • In accordance with the Urban Water Management Planning Act, the Water Authority adopted their 2020 UWMP on May 27, 2021. The updated Water Authority 2020 UWMP identifies a diverse mix of local and imported water supplies to meet future demands. A copy of the updated Water Authority 2020 UWMP can be found on the internet at: https://www.sdcwa.org/your-water/planning-preparedness/ • As part of the October 2003 Colorado River Quantification Settlement Agreement (QSA), the Water Authority was assigned MWD’s rights to 77,700-acre feet per year of conserved water from the All-American Canal (AAC) and Coachella Canal (CC) lining projects. Deliveries of this conserved water from the CC reached the region in 2007 and deliveries from the AAC reached the region in 2010. Expected supplies from the canal lining projects are considered verifiable Water Authority supplies. • Deliveries of conserved agricultural water from the Imperial Irrigation District (IID) to San Diego County have increased annually since 2003, with 70,000 acre-feet per year of deliveries in Fiscal Year (FY) 2010. The quantities increased annually to 200,000 acre- feet per year through 2021, and then remain fixed for the duration of the transfer agreement. • Development of seawater desalination in San Diego County assists the region in diversifying its water resources; reduces dependence on imported supplies; and provides a new drought‐proof, locally treated water supply. The Carlsbad Desalination Project is a fully operational seawater desalination plant and conveyance pipeline developed by Poseidon, a private investor–owned company that develops water and wastewater infrastructure. The Carlsbad Desalination Project, located near the Carlsbad Energy Center, began commercial operation on December 23, 2015, and can provide a highly reliable local supply of up to 56,000 AF/YR for the region. Of the total Carlsbad Desalination Plant production, Vallecitos Water District has a direct connection and a contract to receive 4,083 AFY. Carlsbad MWD has agreed to a take or pay of 2,500 AFY. Through implementation of the Water Authority and member agency planned supply projects, along with reliable imported water supplies from MWD, the region anticipates having adequate supplies to meet existing and future water demands. To ensure sufficient supplies to meet projected growth in the San Diego region, the Water Authority uses the SANDAG most recent regional growth forecast in calculating regional water demands. The SANDAG regional growth forecast is based on the plans and policies of the land-use jurisdictions with San Diego County. The existing and future demands of the member agencies are included in the Water Authority’s projections. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 22 6.2.1 Availability of Sufficient Supplies and Plans for Acquiring Additional Supplies The Water Authority currently obtains imported supplies from MWD, conserved water from the AAC and CC lining projects, an increasing amount of conserved agricultural water from IID, and desalinated seawater from the Carlsbad desalination plant. The Water Authority is historically the largest purchaser of MWD water. However, as the Water Authority and its member agencies have increased their locally controlled water resources and investments in water use efficiency, the Water Authority’s MWD purchases have declined. In fiscal year 2020, the Water Authority purchased 62,852 AF, or about 6%, of all the water MWD sold. MWD has stated, consistent with Section 4202 of its Administrative Code that it is prepared to provide the Water Authority’s service area with adequate supplies of water to meet expanding and increasing needs in the years ahead. When additional water resources are required to meet increasing needs, MWD has stated it will be prepared to deliver such supplies. In the Findings Section of its 2020 UWMP, MWD states that it has supply capacities that would be sufficient to meet expected demands from 2025 through 2045. MWD has plans for supply implementation and continued development of a diversified resource mix including programs in the Colorado River, State Water Project, Central Valley storage and transfer programs, local resource projects, and in-region storage that enables the region to meet its water supply needs. The Water Authority has made large investments in MWD’s facilities and will continue to include imported supplies from MWD in the future resource mix. As discussed in the Water Authority’s 2020 UWMP, the Water Authority and its member agencies continue the planning to further diversify the San Diego regions supply portfolio and reduce purchases from MWD. As part of the Water Authority’s diversification efforts, the Water Authority is now taking delivery of conserved agricultural water from IID, water saved from the AAC and CC lining projects and desalinated seawater from the Carlsbad desalination plant. Table 4 summarizes the Water Authority’s supply sources with detailed information included in the sections to follow. Deliveries from MWD are also included in Table 4, which is further discussed in Section 6.1 above. The Water Authority’s member agencies provided the verifiable local supply targets for groundwater, recycled water, potable reuse and surface water, which are discussed in more detail in Section 5 of the Water Authority’s 2020 UWMP. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 23 Table 4 Projected Verifiable Water Supplies – Water Authority Service Area Normal Year (acre feet)1 Water Supply Sources 2025 2030 2035 2040 2045 Water Authority Supplies MWD Supplies 55,996 53,572 13,625 32,765 49,196 Water Authority/IID Transfer 200,000 200,000 200,000 200,000 200,000 AAC and CC Lining Projects 78,700 78,700 78,700 78,700 78,700 Regional Seawater Desalination 50,000 50,000 50,000 50,000 50,000 Member Agency Supplies Surface Water 43,957 43,957 44,659 44,659 44,659 Water Recycling 41,963 45,513 45,628 45,749 45,854 Groundwater 21,900 23,100 23,100 19,600 19,600 Brackish GW Recovery 8,400 8,400 8,400 8,400 8,400 Seawater Desalination 6,000 6,000 6,000 6,000 6,000 Potable Reuse 33,042 53,202 112,562 112,562 112,562 San Luis Rey Water Transfers 15,800 15,800 15,800 15,800 15,800 Total Projected Supplies 555,758 578,244 598,474 614,235 630,771 Source: Water Authority 2020 Urban Water Management Plan – Table 9-1. 1Normal water year demands based on 1960-2018 hydrology. Section 5.6.1 of the Water Authority’s 2020 UWMP includes a discussion of the local supply target for seawater desalination. Seawater desalination supplies represent a significant local resource in the Water Authority’s service area. The Carlsbad Desalination Project (Project) is a fully permitted seawater desalination plant and conveyance pipeline designed to provide a highly reliable local supply of up to 56,000 acre-feet (AF) per year for the region. In 2020, the Project accounts for approximately 8% of the total projected regional supply and 30% of all locally generated water in San Diego County. The project became operational in late 2015 and it more than doubles the number of local supplies developed in the region since 1991. The desalination plant itself was fully financed, built, by Poseidon Resources (Channelside) LC. The equity owner of the plant, Orion Water Partners LLC, entered into an agreement to sell its ownership to Aberdeen Standard Investments. Poseidon Water LLC is the Project Manager to perform the management and administrative functions at the plant for the new owner. The Water Authority purchases water from the plant under a water purchase agreement. The new pipeline connecting the desalination plant with the Water Authority’s Second Aqueduct is owned and operated by the Water Authority, but Poseidon had the responsibility for design and construction through a separate Design-Build Agreement. The Water Authority was responsible for aqueduct improvements, including the relining and rehabilitation of Pipeline 3 to accept desalinated water under higher operating pressures, modifications to the San Marcos Vent that allows the flow of water between Pipelines 3 and 4, and improvements at the Twin Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 24 Oaks Valley Water Treatment Plant necessary to integrate desalinated water into the Water Authority’s system for optimal distribution to member agencies. The Water Authority’s existing and planned supplies from the IID transfer, canal lining, and desalination projects are considered “drought-proof” supplies and should be available at the yields shown in Table 4 in normal water year supply and demand assessment. Single dry year and multiple dry year scenarios are discussed in more detail in Section 9 of the Water Authority’s 2020 UWMP. As part of preparation of a written water supply assessment and/or verification report, an agency’s shortage contingency analysis should be considered in determining sufficiency of supply. Section 11 of the Water Authority’s 2020 UWMP contains a detailed shortage contingency analysis that addresses a regional catastrophic shortage situation and drought management. The analysis demonstrates that the Water Authority and its member agencies, through the Integrated Contingency Plan, Emergency Storage Project, and Water Shortage Contingency Plan are taking actions to prepare for and appropriately handle an interruption of water supplies. The Water Authority’s Board of Directors approved the Drought Management Plan (DMP) in 2006. The DMP outlined a series of orderly, progressive steps for the Water Authority and its member agencies to take during shortages to minimize impacts to the region’s economy and quality of life. It also included an allocation methodology to equitably allocate water supplies to the member agencies. The DMP was first activated in 2007 in response to MWD drawing water from storage to meet demands and deactivated in 2011 when supply conditions improved. In 2008, the Water Authority’s Board approved another drought management document, the Model Drought Response Conservation Program Ordinance. The model ordinance focuses on core water use restrictions and is intended to assist the member agencies when updating or drafting local drought response ordinances. The intent of the model ordinance is to provide regional consistency in drought response levels and messaging to the public and media. Also in 2008, the Water Authority’s Board adopted Resolution 2008-11, that established procedures to administer the supply allocation methodology contained in the DMP. In 2012, the DMP’s supply allocation methodology was updated, using lessons from the previous shortage periods, and the DMP was renamed the Water Shortage and Drought Response Plan (WSDRP). In 2014, the WSDRP was activated due to critically dry weather in California and the impact on water supply conditions. It deactivated in 2016 when supply conditions improved. In each instance when the DMP and WSDRP were activated, a smooth transition into and out of water allocations for the member agencies was possible due to the advanced planning of the Water Authority and its member agencies. Those planning efforts also resulted in an approach that allowed for regional consistency in public drought messaging. On August 24, 2017, the Water Authority’s Board approved proposed revisions of the WSDRP and renamed it the Water Shortage Contingency Plan (WSCP) to align the WSCP Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 25 with the framework outlined in the April 2017 Final Report, Making Water Conservation a California Way of Life, Implementing Executive Order B-37-16 in the areas of water use efficiency and shortage response planning. The WSCP continues a proactive and comprehensive approach to shortage response planning for the region. The plan will be reviewed and potentially updated at least every five years in coordination with the preparation of the Water Authority’s Urban Water Management Plan, which will include any final requirements approved through legislation implementing the state’s framework report. 6.2.1.1 Water Authority-Imperial Irrigation District Water Conservation and Transfer Agreement The QSA was signed in October 2003 and resolves long-standing disputes regarding priority and use of Colorado River water and creates a baseline for implementing water transfers. With approval of the QSA, the Water Authority and IID were able to implement their Water Conservation and Transfer Agreement. This agreement not only provides reliability for the San Diego region, but also assists California in reducing its use of Colorado River water to its legal allocation. On April 29, 1998, the Water Authority signed a historic agreement with IID for the long-term transfer of conserved Colorado River water to San Diego County. The Water Authority-IID Water Conservation and Transfer Agreement (Transfer Agreement) is the largest agriculture-to- urban water transfer in United States history. Colorado River water will be conserved by Imperial Valley farmers who voluntarily participate in the program and then transferred to the Water Authority for use in San Diego County. Implementation Status On October 10, 2003, the Water Authority and IID executed an amendment to the original 1998 Transfer Agreement. This amendment modified certain aspects of the Transfer Agreement to be consistent with the terms and conditions of the QSA and related agreements. It also modified other aspects of the agreement to lessen the environmental impacts of the transfer of conserved water. The amendment was expressly contingent on the approval and implementation of the QSA, which was also executed on October 10, 2003. Section 6.2.1, “Colorado River,” contains details on the QSA. On November 5, 2003, IID filed a complaint in Imperial County Superior Court seeking validation of 13 contracts associated with the Transfer Agreement and the QSA. Imperial County and various private parties filed additional suits in Superior Court, alleging violations of the California Environmental Quality Act (CEQA), the California Water Code, and other laws related to the approval of the QSA, the water transfer, and related agreements. The lawsuits were coordinated for trial. The IID, Coachella Valley Water District, MWD, the Water Authority, and state are defending these suits and coordinating to seek validation of the contracts. In January 2010, a California Superior Court judge ruled that the QSA and 11 related agreements were invalid, because one of the agreements created an open-ended financial obligation for the state, Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 26 in violation of California’s constitution. The QSA parties appealed this decision and on July 2013, a Sacramento Superior Court judge entered a final judgment validating the QSA and rejecting all of the remaining legal challenges. The judge affirmed all of the contested actions, including the adequacy of the environmental documents prepared by the IID. In May 2015, the state Court of Appeal issued a ruling that dismissed all remaining appeals. Expected Supply Deliveries into San Diego County from the transfer began in 2003 with an initial transfer of 10,000 acre-feet per year. The Water Authority received increasing amounts of transfer water each year, according to a water delivery schedule contained in the transfer agreement The quantities will increase annually to 200,000 acre feet per year by 2021 then remain fixed for the duration of the transfer agreement. The initial term of the Transfer Agreement is 45 years, with a provision that either agency may extend the agreement for an additional 30-year term. During dry years, when water availability is low, the conserved water will be transferred under IID’s Colorado River rights, which are among the most senior in the Lower Colorado River Basin. Without the protection of these rights, the Water Authority could suffer delivery cutbacks. In recognition for the value of such reliability, the 1998 contract required the Water Authority to pay a premium on transfer water under defined regional shortage circumstances. The shortage premium period duration is the period of consecutive days during which any of the following exist: 1) a Water Authority shortage; 2) a shortage condition for the Lower Colorado River as declared by the Secretary; and 3) a Critical Year. Under terms of the October 2003 amendment, the shortage premium will not be included in the cost formula until Agreement Year 16. Transportation The Water Authority entered into a water exchange agreement with MWD on October 10, 2003, to transport the Water Authority–IID transfer water from the Colorado River to San Diego County. Under the exchange agreement, MWD takes delivery of the transfer water through its Colorado River Aqueduct. In exchange, MWD delivers to the Water Authority a like quantity and quality of water. The Water Authority pays MWD’s applicable wheeling rate for each acre- foot of exchange water delivered. Under the terms of the water exchange agreement, MWD will make delivery of the transfer water for 35 years, unless the Water Authority and MWD elect to extend the agreement another 10 years for a total of 45 years. Cost/Financing The costs associated with the transfer are financed through the Water Authority’s rates and charges. In the agreement between the Water Authority and IID, the price for the transfer water started at $258 per acre-feet and increased by a set amount for the first seven years. In December 2009, the Water Authority and IID executed a fifth amendment to the water transfer agreement that sets the price per acre-feet for transfer water for calendar years 2010 through 2015, beginning at $405 per acre-feet in 2010 and increasing to $624 per acre-feet in 2015. For Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 27 calendar years 2016 through 2034, the unit price will be adjusted using an agreed-upon index. The amendment also required the Water Authority to pay IID $6 million at the end of calendar year 2009 and another $50 million on or before October 1, 2010, provided that a transfer stoppage is not in effect as a result of a court order in the QSA coordinated cases. Beginning in 2035, either the Water Authority or IID can, if certain criteria are met, elect a market rate price through a formula described in the water transfer agreement. The October 2003 exchange agreement between MWD and the Water Authority set the initial cost to transport the conserved water at $253 per acre-feet. Thereafter, the price is set to be equal to the charge or charges set by MWD’s Board of Directors pursuant to applicable laws and regulation, and generally applicable to the conveyance of water by MWD on behalf of its member agencies. The Water Authority is providing $10 million to help offset potential socioeconomic impacts associated with temporary land fallowing. IID will credit the Water Authority for these funds during years 16 through 45. In 2007, the Water Authority prepaid IID an additional $10 million for future deliveries of water. IID will credit the Water Authority for this up-front payment during years 16 through 30. As part of implementation of the QSA and water transfer, the Water Authority also entered into an environmental cost sharing agreement. Under this agreement the Water Authority is contributing a total of $64 million to fund environmental mitigation projects and the Salton Sea Restoration Fund. Written Contracts or Other Proof The supply and costs associated with the transfer are based primarily on the following documents: Agreement for Transfer of Conserved Water by and between IID and the Water Authority (April 29, 1998). This Agreement provides for a market-based transaction in which the Water Authority would pay IID a unit price for agricultural water conserved by IID and transferred to the Water Authority. Revised Fourth Amendment to Agreement between IID and the Water Authority for Transfer of Conserved Water (October 10, 2003). Consistent with the executed Quantification Settlement Agreement (QSA) and related agreements, the amendments restructure the agreement and modify it to minimize the environmental impacts of the transfer of conserved water to the Water Authority. Amended and Restated Agreement between MWD and Water Authority for the Exchange of Water (October 10, 2003). This agreement was executed pursuant to the QSA and provides for delivery of the transfer water to the Water Authority. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 28 Environmental Cost Sharing, Funding, and Habitat Conservation Plan Development Agreement among IID, Coachella Valley Water District (CVWD), and Water Authority (October 10, 2003). This Agreement provides for the specified allocation of QSA-related environmental review, mitigation, and litigation costs for the term of the QSA, and for development of a Habitat Conservation Plan. Quantification Settlement Agreement Joint Powers Authority Creation and Funding Agreement (October 10, 2003). The purpose of this agreement is to create and fund the QSA Joint Powers Authority and to establish the limits of the funding obligation of CVWD, IID, and Water Authority for environmental mitigation and Salton Sea restoration pursuant to SB 654 (Machado). Fifth Amendment to Agreement Between Imperial Irrigation District and San Diego County Water Authority for Transfer of Conserved Water (December 21, 2009). This agreement implements a settlement between the Water Authority and IID regarding the base contract price of transferred water. 6.2.1.2 All-American Canal and Coachella Canal Lining Projects As part of the QSA and related contracts, the Water Authority was assigned MWD’s rights to 77,700 acre-feet per year of conserved water from projects that will line the All-American Canal (AAC) and Coachella Canal (CC). The projects will reduce the loss of water that currently occurs through seepage, and the conserved water will be delivered to the Water Authority. This conserved water will provide the San Diego region with an additional 8.5 million acre-feet over the 110-year life of the agreement. Implementation Status The CC lining project began in November 2004 and was completed in 2006. Deliveries of conserved water to the Water Authority began in 2007. The project constructed a 37-mile parallel canal adjacent to the CC. The AAC lining project was begun in 2005 and was completed in 2010. The lining project constructed a concrete-lined canal parallel to 24 miles of the existing AAC from Pilot Knob to Drop 3. In July 2005, a lawsuit (CDEM v United States, Case No. CV-S-05-0870-KJD-PAL) was filed in the U. S. District Court for the District of Nevada on behalf of U.S. and Mexican groups challenging the lining of the AAC. The lawsuit, which names the Secretary of the Interior as a defendant, claims that seepage water from the canal belongs to water users in Mexico. California water agencies note that the seepage water is actually part of California's Colorado River allocation and not part of Mexico's allocation. The plaintiffs also allege a failure by the United States to comply with environmental laws. Federal officials have stated that they intend to vigorously defend the case. Expected Supply Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 29 The AAC lining project makes 67,700 acre-feet of Colorado River water per year available for allocation to the Water Authority and San Luis Rey Indian water rights settlement parties. The CC lining project makes 26,000 acre-feet of Colorado River water each year available for allocation. The 2003 Allocation Agreement provides for 16,000 acre-feet per year of conserved canal lining water to be allocated to the San Luis Rey Indian Water Rights Settlement Parties. The remaining amount, 77,700 acre-feet per year, is to be available to the Water Authority, with up to an additional 4,850 acre-feet per year available to the Water Authority depending on environmental requirements from the CC lining project. For planning purposes, the Water Authority assumes that 2,500 acre-feet of the 4,850 acre-feet will be available each year for delivery, for a total of 80,200 acre-feet per year of that supply. According to the Allocation Agreement, IID has call rights to a portion (5,000 acre-feet per year) of the conserved water upon termination of the QSA for the remainder of the 110 years of the Allocation Agreement and upon satisfying certain conditions. The term of the QSA is for up to 75 years. Transportation The October 2003 Exchange Agreement between the Water Authority and MWD provides for the delivery of the conserved water from the canal lining projects. The Water Authority pays MWD’s applicable wheeling rate for each acre-foot of exchange water delivered. In the Agreement, MWD will deliver the canal lining water for the term of the Allocation Agreement (110 years). Cost/Financing Under California Water Code Section 12560 et seq., the Water Authority received $200 million in state funds for construction of the canal lining projects. In addition, $20 million was made available from Proposition 50 and $36 million from Proposition 84. The Water Authority was responsible for additional expenses above the funds provided by the state. The rate to be paid to transport the canal lining water will be equal to the charge or charges set by MWD’s Board of Directors pursuant to applicable law and regulation and generally applicable to the conveyance of water by MWD on behalf of its member agencies. In accordance with the Allocation Agreement, the Water Authority is responsible for a portion of the net additional Operation, Maintenance, and Repair (OM&R) costs for the lined canals. Any costs associated with the lining projects as proposed are to be financed through the Water Authority’s rates and charges. Written Contracts or Other Proof The expected supply and costs associated with the lining projects are based primarily on the following documents: Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 30 U.S. Public Law 100-675 (1988). Authorized the Department of the Interior to reduce seepage from the existing earthen AAC and CC. The law provides that conserved water will be made available to specified California contracting water agencies according to established priorities. California Department of Water Resources - MWD Funding Agreement (2001). Reimburse MWD for project work necessary to construct the lining of the CC in an amount not to exceed $74 million. Modified by First Amendment (2004) to replace MWD with the Authority. Modified by Second Amendment (2004) to increase funding amount to $83.65 million, with addition of funds from Proposition 50. California Department of Water Resources - IID Funding Agreement (2001). Reimburse IID for project work necessary to construct a lined AAC in an amount not to exceed $126 million. MWD - CVWD Assignment and Delegation of Design Obligations Agreement (2002). Assigns design of the CC lining project to CVWD. MWD - CVWD Financial Arrangements Agreement for Design Obligations (2002). Obligates MWD to advance funds to CVWD to cover costs for CC lining project design and CVWD to invoice MWD to permit the Department of Water Resources to be billed for work completed. Allocation Agreement among the United States of America, The MWD Water District of Southern California, Coachella Valley Water District, Imperial Irrigation District, San Diego County Water Authority, the La Jolla, Pala, Pauma, Rincon, and San Pasqual Bands of Mission Indians, the San Luis Rey River Indian Water Authority, the County of Escondido, and Vista Irrigation District (October 10, 2003). This agreement includes assignment of MWD’s rights and interest in delivery of 77,700 acre-feet of Colorado River water previously intended to be delivered to MWD to the Water Authority. Allocates water from the AAC and CC lining projects for at least 110 years to the Water Authority, the San Luis Rey Indian Water Rights Settlement Parties, and IID, if it exercises its call rights. Amended and Restated Agreement between MWD and Water Authority for the Exchange of Water (October 10, 2003). This agreement was executed pursuant to the QSA and provides for delivery of the conserved canal lining water to the Water Authority. Agreement between MWD and Water Authority regarding Assignment of Agreements related to the AAC and CC Lining Projects. This agreement was executed in April 2004 and assigns MWD's rights to the Water Authority for agreements that had been executed to facilitate funding and construction of the AAC and CC lining projects: Assignment and Delegation of Construction Obligations for the Coachella Canal Lining Project under the Department of Water Resources Funding Agreement No. 4600001474 from the San Diego County Water Authority to the Coachella Valley Water District, dated September 8, 2004. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 31 Agreement Regarding the Financial Arrangements between the San Diego County Water Authority and Coachella Valley Water District for the Construction Obligations for the Coachella Canal Lining Project, dated September 8, 2004. Agreement No. 04-XX-30-W0429 Among the United States Bureau of Reclamation, the Coachella Valley Water District, and the San Diego County Water Authority for the Construction of the Coachella Canal Lining Project Pursuant to Title II of Public Law 100-675, dated October 19, 2004. California Water Code Section 12560 et seq. This Water Code Section provides for $200 million to be appropriated to the Department of Water Resources to help fund the canal lining projects in furtherance of implementing California’s Colorado River Water Use Plan. California Water Code Section 79567. This Water Code Section identifies $20 million as available for appropriation by the California Legislature from the Water Security, Clean Drinking Water, Coastal, and Beach Protection Fund of 2002 (Proposition 50) to DWR for grants for canal lining and related projects necessary to reduce Colorado River water use. According to the Allocation Agreement, it is the intention of the agencies that those funds will be available for use by the Water Authority, IID, or CVWD for the AAC and CC lining projects. California Public Resources Code Section 75050(b) (1). This section identifies up to $36 million as available for water conservation projects that implement the Allocation Agreement as defined in the Quantification Settlement Agreement. 6.2.1.3 Carlsbad Seawater Desalination Project Development of seawater desalination in San Diego County has assisted the region in diversifying its water resources, reducing dependence on imported supplies and providing a new drought-proof, locally treated water supply. The Carlsbad Desalination Project is a fully- permitted seawater desalination plant and conveyance pipeline developed by Poseidon, a private investor–owned company that develops water and wastewater infrastructure. The project, located near the Carlsbad Energy Center, has been in development since 1998 and was incorporated into the Water Authority’s 2003 Water Facilities Master Plan and the 2020 UWMP. The Carlsbad Desalination Project obtained all required permits and environmental clearances and starting in late 2015 provides a highly reliable local supply of 48,000 to 56,000 acre-feet per year for the region. Implementation Status The Project obtained all required permits and environmental clearances, including the following: • National Pollutant Discharge Elimination System (NPDES) Discharge Permit (Regional Water Quality Control Board) • Conditional Drinking Water Permit (California Department of Health Services) • State Lands Commission Lease (State Lands Commission) • Coastal Development Permit (California Coastal Commission) Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 32 IDE Technologies, a worldwide leader in the design, construction, and operation of desalination plants, was the desalination process contractor for the Project. On July 22, 2010, the Board approved a Term Sheet between the Water Authority and Poseidon Resources that outlined the key terms and conditions that would be detailed and incorporated in a comprehensive Water Purchase Agreement (WPA). Beginning in October 2011 and under the direction of the Board’s Carlsbad Desalination Project Advisory Group, staff began developing and negotiating with Poseidon a WPA consistent with the July 22, 2010 Board approved Term Sheet. The July 2010 Term Sheet also identified specific conditions precedent to Board consideration of the WPA. On November 29, 2012, the Water Authority Board adopted a resolution approving the Design-Build Agreement between the Water Authority and Poseidon. The Design-Build Agreement established the commercial and technical terms for implementation of the desalination product pipeline improvements. These improvements consisted of an approximate 10-mile long, 54-inch diameter conveyance pipeline connecting the Desalination Plant to the Water Authority’s Second Aqueduct. The pipeline was generally be constructed within improved streets in commercial and industrial areas in the cities of Carlsbad, Vista, and San Marcos. The Water Authority owns the Project Water Pipeline Improvements and has assumed operational control of all pipeline improvements. This system was placed into service in late 2015. Expected Supply The Project provides a highly reliable local supply of 48,000 to 56,000 acre-feet per year of supply for the region, available in both normal and dry hydrologic conditions. The project more than doubles the number of local supplies developed in the region since 1991. Transportation On November 29, 2012, the Water Authority Board adopted a resolution approving the Design-Build Agreement between the Water Authority and Poseidon. The Design-Build Agreement establishes the commercial and technical terms for implementation of the desalination product pipeline improvements. These improvements consisted of an approximate 10-mile long, 54-inch diameter conveyance pipeline connecting the Desalination Plant to the Water Authority’s Second Aqueduct. The pipeline was generally constructed within improved streets in commercial and industrial areas in the cities of Carlsbad, Vista, and San Marcos. The Water Authority owns the Project Water Pipeline Improvements and has assumed operational control of all pipeline improvements. The Water Authority was responsible for aqueduct improvements, including the relining and rehabilitation of Pipeline 3 to accept desalinated water under higher operating pressures, modifications to the San Marcos Vent that allows the flow of water between Pipelines 3 and 4, and improvements at the Twin Oaks Valley Water Treatment Plant necessary to integrate Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 33 desalinated water into the Water Authority’s system for optimal distribution to member agencies. Cost/Financing The plant and the offsite pipeline are financed through tax exempt government bonds issued for the Water Authority by the California Pollution Control Financing Authority (CPCFA). On November 29, 2012, the Water Authority Board adopted a resolution approving agreement to accomplish tax exempt project financing through the CPCFA. Based on current electricity cost estimates, the Water Purchase Agreement sets the price of the water from the Carlsbad Desalination Project at $2,131 to $2,367 per acre foot in 2016. The Water Authority’s water purchase costs would be financed through Water Authority rates and charges. Poseidon is financing the capital cost of the Project with a combination of private equity and tax-exempt Private Activity Bonds. Written Contracts or Other Proof The expected supply and costs associated with the Carlsbad Desalination Project are based primarily on the following documents: Development Agreement between County of Carlsbad and Poseidon (October 2009). A Development Agreement between Carlsbad and Poseidon was executed on October 5, 2009 Agreement of Term Sheet between the Water Authority and Poseidon Resources (July 2010). The Water Authority approved the Term Sheet at its July 2010 Board Meeting. The Term Sheet outlines the terms and conditions of a future Water Purchase Agreement with Poseidon and allocates the resources to prepare the draft Water Purchase Agreement. 6.2.2 Water Authority Capital Improvement Program and Financial Information The Water Authority’s Capital Improvement Program (CIP) can trace its beginnings to a 1989 report approved by the Water Authority Board (Board) entitled The Water Distribution Plan, a Capital Improvement Program through the Year 2010 (Water Distribution Plan) (Water Authority Board, 1989). The Water Distribution Plan included 10 projects designed to increase the capacity of the aqueduct system, increase the yield from existing water treatment plants, obtain additional supplies from Metropolitan, and increase the reliability and flexibility of the aqueduct system. Since that time, the Water Authority has made numerous additions to the list of projects included in its CIP as the region’s infrastructure needs and water supply outlook have changed. The current list of projects included in the CIP is based on the results of planning studies, including the 2020 UWMP and the 2013 Regional Water Facilities Master Plan Update. These CIP projects, which are most recently described in the Water Authority’s General Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 34 Manager’s Adopted Multi-Year Budget, Fiscal Years 2020 and 2021 (Water Authority, 2020a), include 34 projects valued at $1.99 billion. These 34 CIP projects are designed to meet projected water supply and delivery needs of the member agencies through 2035. These CIP projects are grouped into the following categories: Asset Management - The Water Authority’s emphasis has transitioned from a large-scale capital-intensive program to an operations-based organization with a focus on effective asset management. The primary components of asset management projects include the relining and replacement of existing pipelines, and infrastructure rehabilitation of aging facilities. New Facilities - These projects include completion of new facilities to diversify the Water Authority’s source of water for the region (e.g., the Carlsbad Desalination Plant and Colorado River Canal Lining and Water Transfer Mitigation) as well as new facilities that enhance operations of the Water Authority’s existing aqueduct system. Emergency Storage Program - These projects include improvements to both the First and Second Aqueducts in north San Diego County, are required to address delivery capabilities related to the ESP, and include the ESP–North County Pump Stations, ESP–Post Construction Activities, and ESP–Owner Controlled Insurance Program Closeout. Master Planning and Studies - These are near-term projects are identified in the Master Plan Update and are added to the CIP for further study to address untreated water capacity constraints and operational flexibility, building out the final ESP phase (including upgrades to the San Vicente Pump Station to add a third pump drive and additional power), adding system isolation valves for more efficient operation of the aqueduct system, and performing various planning studies study to explore potential energy production projects Other - These projects include the implementing the Mitigation Program that will provide coordinated permitting and mitigation for environmental impacts resulting from the construction, operation, and maintenance of CIP projects, replacing the Water Authority’s Headquarters building roof, implementing a new water billing system Long Range Forecast Projects — These projects are those outside of the Water Authority’s current planning horizon window. As a result of the Water Authority’s Asset Management Program inspection and monitoring, CIP prioritization, and other planning studies, the CIP is revised every two years as part of the biennial budget setting process. 6.3 Otay Water District The Otay WD 2015 WFMP Update and the 2020 UWMP contain comparisons of projected supply and demands through the year 2045. Projected potable water resources to meet Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 35 planned demands will be supplied entirely with imported water received from the Water Authority. Recycled water resources to meet projected demands will be supplied from local wastewater treatment plants. The Otay WD currently has no local supply of raw water, potable water, or groundwater. The development and/or acquisition of potential groundwater, recycled water market expansion, and seawater desalination supplies by the Otay WD has evolved and may occur in response to regional water supply issues. These water supply projects are in addition to those identified as sustainable supplies in the current Water Authority and MWD UWMP, IRP, Master Plans, and other planning documents. These new water supply projects are not currently developed and are in various stages of the planning process. These local and regional water supply projects would allow for less reliance upon imported water and are considered a new water supply resource for the Otay WD. The supply forecasts contained within this WSA&V Report consider development and/or acquisition of potential groundwater, recycled water market expansion, and seawater desalination supplies by the Otay WD. 6.3.1 Availability of Sufficient Supplies and Plans for Acquiring Additional Supplies The availability of sufficient potable water supplies and plans for acquiring additional potable water supplies to serve existing and future demands of the Otay WD is founded upon the preceding discussions regarding MWD’s and the Water Authority’s water supply resources and water supplies to be acquired by the Otay WD. Historic imported water deliveries from the Water Authority to Otay WD and recycled water deliveries from the Otay WD Ralph W. Chapman Water Reclamation Facility (RWCWRF) are shown in Table 5. Since the year 2000 through mid-May 2007, recycled water demand exceeded recycled water supply capability, most often in the summer months. The RWCWRF is limited to a maximum production of about 1,300 acre-feet per year. This recycled water supply shortfall had been met by supplementing with potable water into the recycled water storage system as needed. On May 18, 2007 an additional source of recycled water supply from the City of San Diego’s South Bay Water Reclamation Plant (SBWRP) became available. The ability to obtain recycled water from the SBWRP is a result of the construction and operation of the transmission, storage, and pump station systems necessary to link the SBWRP recycled water supply source to the existing Otay WD recycled water system. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 36 Table 5 Otay Water District Historic Imported and Local Water Supplies Calendar Year Imported Water (acre-feet) Recycled Water (acre-feet) Total (acre-feet) 1990 23,200 0 23,200 1995 20,922 614 21,536 2000 29,901 948 30,849 2005 37,678 1,227 38,905 2010 29,270 4,090 33,270 2015 26,494 3,777 30,271 2016 27,289 3,888 31,177 2017 28,045 4,007 32,052 2018 29,608 4,218 33,826 2019 27,386 3,357 30,743 2020 27,448 3,333 30,781 2021 30,126 4,131 34,257 Source: Otay Water District operational records. 6.3.1.1 Imported and Regional Supplies The availability of sufficient imported and regional potable water supplies to serve existing and planned uses within Otay WD is demonstrated in the above discussion on MWD and the Water Authority’s water supply reliability. The County Water Authority Act, Section 5 subdivision 11, states that the Water Authority “as far as practicable, shall provide each of its member agencies with adequate supplies of water to meet their expanding and increasing needs.” The Water Authority provides between 75 to 95 percent of the total supplies used by its 24 member agencies, depending on local weather and supply conditions. Potable Water System Facilities The Otay WD continues to pursue diversification of its water supply resources to increase reliability and flexibility. The Otay WD also continues to plan, design, and construct potable water system facilities to obtain these supplies and to distribute potable water to meet customer demands. The Otay WD has successfully negotiated two water supply diversification agreements that enhance reliability and flexibility, which are briefly described as follows. • The Otay WD entered into an agreement with the City of San Diego, known as the Otay Water Treatment Plant (WTP) Agreement. The Otay WTP Agreement provides for raw water purchase from the Water Authority and treatment by the City of San Diego at their Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 37 Otay WTP for delivery to Otay WD. The supply system link to implement the Otay WTP Agreement to access the regions raw water supply system and the local water treatment plant became fully operational in August 2005. This supply link consists of the typical storage, transmission, pumping, flow measurement, and appurtenances to receive and transport the treated water to the Otay WD system. The City of San Diego obligation to supply 10 mgd of treated water under the Otay WTP Agreement is contingent upon the availability of 10 mgd of surplus treatment capacity in the Otay WTP until such time as Otay WD pays the City of San Diego to expand the Otay WTP to meet Otay WD future needs. In the event that the City of San Diego’s surplus is projected to be less than 10 mgd the City of San Diego will consider and not unreasonably refuse the expansion of the Otay WTP to meet the Otay WD future needs. The Otay WTP existing rated capacity is 40 mgd with an actual effective capacity of approximately 34 mgd. The City of San Diego’s typical demand for treated water from the Otay WTP is approximately 20 mgd. It is at the City of San Diego’s discretion to utilize either imported raw water delivered by the Water Authority Pipeline No. 3 or local water stored in Lower Otay Reservoir for treatment to supply the Otay WD demand. The Otay WD entered into an agreement with the Water Authority, known as the East County Regional Treated Water Improvement Program (ECRTWIP Agreement). The ECRTWIP Agreement provides for transmission of raw water to the Helix Water District R. M. Levy WTP for treatment and delivery to Otay WD. The supply system link to implement the ECRTWIP Agreement is complete, allowing access to the regions raw water supply system and the local water treatment plant. This supply link consists of the typical transmission, pumping, storage, flow control, and appurtenances to receive and transport the potable water from the R. M. Levy WTP to Otay WD. Cost and Financing The capital improvement costs associated with water supply and delivery are financed through the Otay WD water meter capacity fee and user rate structures. The Otay WD potable water sales revenue are used to pay for the wholesale cost of the treated water supply and the operating and maintenance expenses of the potable water system facilities. Written Agreements, Contracts, or Other Proof The supply and cost associated with deliveries of treated water from the Otay WTP and the R.M. Levy WTP is based on the following documents. Agreement for the Purchase of Treated Water from the Otay Water Treatment Plant between the City of San Diego and the Otay Water District. The Otay WD entered into an agreement dated January 11, 1999 with the City of San Diego that provides for 10 mgd of surplus treated water to the Otay WD from the existing Otay WTP capacity. The agreement allows for the purchase of treated water on an as available basis from the Otay WTP. The Otay WD pays the Water Authority at the prevailing raw water rate for raw water and pays the City of San Diego at a rate equal to the actual cost of treatment to potable water standards. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 38 Agreement between the San Diego County Water Authority and Otay Water District Regarding Implementation of the East County Regional Treated Water Improvement Program. The ECRTWIP Agreement requires the purchase of potable water from the Helix WD R.M. Levy WTP at the prevailing Water Authority treated water rate. The ECRTWIP Agreement is dated April 27, 2006. The City of San Diego and the Helix Water District are required to meet all applicable federal, state, and local health and water quality requirements for the potable water produced at the Otay WTP and the R.M. Levy WTP respectively. 6.3.1.2 Recycled Water Supplies Wastewater collection, treatment, and disposal services provided by the Otay WD is limited to a relatively small area within what is known as the Jamacha Basin, located within the Middle Sweetwater River Basin watershed upstream of the Sweetwater Reservoir and downstream of Loveland Reservoir. Water reclamation is defined as the treatment and disinfection of municipal wastewater to provide a water supply suitable for non-potable reuse. The Otay WD owns and operates the Ralph W. Chapman Water Reclamation Facility, which produces recycled water treated to a tertiary level for landscape irrigation purposes. The recycled water market area of the Otay WD is located primarily within the eastern area of the County of Chula Vista. The Otay WD distributes recycled water to a substantial market area that includes but is not limited to the Elite Athlete Training Center, the Eastlake Golf Course, Otay Ranch, and other development projects. The Otay WD projects that annual average demands for recycled water will increase to 5,300 acre-feet per year by 2050. About 1,300 acre-feet per year of supply is generated by the RWCWRF, with the remainder to be supplied to Otay WD by the City of San Diego’s SBWRP. Recycled Water System Facilities The Otay WD has constructed recycled water storage, pumping, transmission, and distribution facilities and will continue to construct these facilities to meet projected recycled water market demands. The Supply Link project consisting of a transmission main, storage reservoir, and a pump station to receive and transport the recycled water from the City of San Diego’s SBWRP was completed in 2007 and recycled water deliveries began on May 18, 2007. Cost and Financing The capital improvement costs associated with the recycled water supply and distribution systems are financed through the Otay WD water meter capacity fee and user rate structures. The Otay WD recycled water sales revenue, along with MWD and the Water Authority’s recycled water sales incentive programs are used to help offset the costs for the wholesale Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 39 purchase and production of the recycled water supply, the operating and maintenance expenses, and the capital costs of the recycled water system facilities. Written Agreements, Contracts, or Other Proof The supply and cost associated with deliveries of recycled water from the SBWRP is based on the following document. Agreement between the Otay Water District and the County of San Diego for Purchase of Reclaimed Water from the South Bay Water Reclamation Plant. The agreement provides for the purchase of at least 6,721 acre-feet per year of recycled water from the SBWRP at an initial price of $350 per acre-foot. The Otay Water District Board of Directors approved the final agreement on June 4, 2003 and the San Diego City Council approved the final agreement on October 20, 2003. Effective January 1, 2016, the City of San Diego raised the cost of recycled water 116% to $754 per acre-foot. Federal, State, and Local Permits/Approvals The Otay WD has in place an agreement with MWD for their recycled water sales incentive program for supplies from the RWCWRF and the SBWRP. Also, the Otay WD has in place an agreement with the Water Authority for their recycled water sales incentive program for supplies from the RWCWRF and the SBWRP. The Water Authority sales incentive agreement was approved by Water Authority on July 26, 2007 and by Otay WD on August 1, 2007. All permits for the construction of the recycled water facilities to receive, store, and pump the SBWRP supply have been acquired through the typical planning, environmental approval, design, and construction processes. The California Regional Water Quality Control Board San Diego Region (RWQCB) “Master Reclamation Permit for Otay Water District Ralph W. Chapman Reclamation Facility” was adopted on May 9, 2007 (Order No. R9-2007-0038). This order establishes master reclamation requirements for the production, distribution, and use of recycled water in the Otay WD service area. The order includes the use of tertiary treated water produced and received from the City of San Diego‘s SBWRP. Recycled water received from and produced by the SBWRP is regulated by Regional Board Order No. 2000-203 and addenda. The City of San Diego is required to meet all applicable federal, state, and local health and water quality requirements for the recycled water produced at the SBWRP and delivered to Otay WD in conformance with Order No. 2000-203. 6.3.1.3 Potential Groundwater Supplies The Otay WD 2015 WFMP Update, 2020 UWMP, and the 2015 Integrated Water Resources Plan Update all contain a description of the development of potential groundwater supplies. Over the past several years, Otay WD has studied several potential groundwater supply options that have shown, through groundwater monitoring well activities, poor quality water and/or insufficient yield from the basins at a cost-effective level. Local Otay WD Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 40 groundwater supply development is considered to be a viable water supply resource to meet projected demands. Local ground water supply projects will allow for less reliance upon imported water, achieve a level of independence of the regional wholesale water agencies, and diversify the Otay WD water supply portfolio consistent with the Otay WD 2015 IRP Update. In recognition of the need to develop sufficient alternative water supplies, the Otay WD has taken the appropriate next steps towards development of production groundwater well projects. Middle Sweetwater River Basin Groundwater Well The Middle Sweetwater River Basin Groundwater Well is a water supply project that was thoroughly studied and documented in the 1990s. The Middle Sweetwater River Basin is located within the Sweetwater River watershed and that reach of the river extends from Sweetwater Reservoir to the upstream Loveland Reservoir. The next step in development of the Middle Sweetwater River Basin Groundwater Well is the implementation of a pilot well project. The ultimate objective of the Otay WD is to develop a groundwater well production system within the Middle Sweetwater River Basin capable of producing a sustainable yield of potable water as a local supply. The groundwater conjunctive use concept is described as the extraction of the quantity of water from the groundwater basin that was placed there by customers of the Otay WD, Helix Water District, and Padre Dam Municipal Water District by means of their use of imported treated water that contributed to the overall volume of groundwater within the basin. A future scope of work will need to address this concept while considering further development of the groundwater basin as an additional supply resource. If it is deemed that the Middle Sweetwater River Basin Groundwater Well Production Project is viable, an engineering consultant will develop a project implementation plan, cost estimate, and related scope of work. Further development of the groundwater basin to enhance the total groundwater production could be accomplished by the Otay WD by means of additional extraction of water from the basin that is placed there by means of either injection and/or spreading basins using imported untreated water as the resource supply. The existing La Mesa Sweetwater Extension Pipeline, owned by the Water Authority, once converted to an untreated water delivery system, could be the conveyance system to transport untreated water for groundwater recharge in support of this conjunctive use concept. These two distinct water resource supply conjunctive use concepts will be addressed so they may coexist and to allow for their development as separate phases. The primary desired outcome of the Middle Sweetwater River Basin Groundwater Well Pilot Project is to determine if it is financially prudent and physically feasible to develop a Phase I Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 41 groundwater well production system within the Middle Sweetwater River Basin capable of producing a sustainable yield of up to 1,500 ac-ft/yr of potable water for the Otay WD. Rancho del Rey Well Groundwater Well Project In 1991, the McMillin Development Company drilled the Rancho del Rey Groundwater Well to augment grading water supplies for their Rancho del Rey development projects. Although the well was considered a “good producer,” little was known regarding its water quality and sustainable yield because the water was used solely for earthwork (i.e., dust control and soil compaction). The well was drilled to 865 feet, with a finished depth of 830 feet and produced approximately 400 AFY of low-quality water for four years until its use was discontinued in April 1995. The McMillin Company notified the Otay WD of its intent to sell the groundwater well asset. In 1997, the Otay WD purchased the existing 7-inch well and the surrounding property on Rancho del Rey Parkway from the McMillin Company with the intent to develop it as a source of potable water. Water treatment would be required to remove salts and boron, among other constituents, using reverse osmosis membranes and ion exchange. In 2000, having received proposals for the design and construction of a reverse osmosis treatment facility that far exceeded the allocated budget, the Board of Directors instructed staff to suspend the project until such time as it became economically viable. In January 2010, citing the rising cost of imported water and the Otay WD's interest in securing its own water source for long-term supply reliability, the Board authorized Phase 1 for drilling and development of the Rancho del Rey Well. On March 3, 2010, the Board adopted the Mitigated Negative Declaration for this project and a Notice of Determination was filed with the County of San Diego on March 5, 2010. In September 2010, a new 12-inch production well was drilled to a depth of 900 feet through the groundwater formation and into fractured bedrock. Testing showed the long-term yield of the new well to be 450 gpm, higher than previous studies had estimated. Separation Processes, Inc. (SPI), a highly qualified membrane treatment firm, was hired to conduct a detailed economic feasibility study to confirm that the annualized unit cost of the new water source was economically competitive with other sources. The economic study estimated the unit cost of water to be $1,500 to $2,000 per AF for an alternative that utilizes a seawater membrane for treating both salts and boron. When compared with the current imported treated water rate from the Water Authority, and the knowledge that this rate will continually increase as MWD and the Water Authority raise potable water rates, the Rancho del Rey Well project has potential to be economically viable. The Otay WD may pursue the Rancho del Rey groundwater well opportunity in the future for the development of a groundwater well production facility to extract approximately 500 AFY. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 42 For water planning purposes, production of groundwater from the Rancho del Rey well is considered “additional planned” for local supplies. Otay Mesa Lot 7 Groundwater Well In early 2001 the Otay WD was approached by a landowner representative about possible interest in purchasing an existing well or alternatively, acquiring groundwater supplied from a well located on Otay Mesa. The landowner, National Enterprises, Inc., indicated that the well could produce 3,200 acre-feet per year with little or no treatment required prior to introducing the water into the Otay WD potable water system or alternatively, the recycled water system. In March 2001 authorization to proceed with testing of the Otay Mesa Lot 7 Groundwater Well was obtained and the Otay WD proceeded with the investigation of this potential groundwater supply opportunity. In May 2001, Geoscience Support Services, Inc. completed the preparation of a report entitled, “Otay Mesa Lot 7 Well Investigation,” to assess the Otay Mesa Lot 7 Well. The scope of work included a geohydrologic evaluation of the well, analysis of the water quality samples, management and review of the well video log, and documentation of well pump testing. The primary findings, as documented in the report, formed the basis of the following recommendations: • For the existing well to be used as a potable water supply resource, a sanitary seal must be installed in accordance with the CDPH guidelines. • Drawdown in the well must be limited to avoid the possibility of collapsing the casing. • Recover from drawdown from pumping is slow and extraction would need to be terminated for up to 2 days to allow for groundwater level recovery. • The well water would need to be treated and/or blended with potable water prior to introduction into the potable water distribution system. The existing Otay Mesa Lot 7 Well, based upon the above findings, was determined not to be a reliable municipal supply of potable water and that better water quality and quantity perhaps could be discovered deeper or at an alternative location within the San Diego Formation. The Otay WD may still pursue the Otay Mesa groundwater well opportunity in the future. Based on the recommendations of the investigation report, a groundwater well production facility at Otay Mesa Lot 7 could extract approximately 300 acre-feet per year. 6.3.2 Otay Water District Capital Improvement Program The Otay WD plans, designs, constructs, and operates water system facilities to acquire sufficient supplies to meet projected ultimate demands for potable and recycled water. In addition, the Otay WD forecasts and plans for water supplies to meet projected demands at ultimate build out. The necessary water facilities and water supply projects are implemented and constructed when development activities proceed and require timely and adequate cost-effective potable and recycled water service. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 43 New water facilities that are required to accommodate forecasted growth within the Otay WD service area are defined and described within the Otay WD 2015 WFMP Update. These new facilities are incorporated into the annual Otay WD Six Year Capital Improvement Program (CIP) for implementation to support development activities. As major development plans are formulated and proceed through the land use jurisdictional agency approval processes, Otay WD prepares water system requirements specifically for the proposed development project consistent with the Otay WD WFMP Update. These requirements document, define, and describe all the potable water and recycled water system facilities needed to be constructed to provide an acceptable and adequate level of service for the proposed land uses. The financial responsibility of the facilities required for service are also included. The Otay WD funds the facilities identified as CIP projects. Established water meter capacity fees and user rates are collected to fund the CIP project facilities. The developer funds all other required water system facilities to provide water service to their project. Section 7 – Conclusion: Availability of Sufficient Supplies The Otay Ranch Town Center Redevelopment project is currently located within the jurisdictions of the Otay WD, Water Authority, and MWD. To obtain permanent imported water supply service, land areas are required to be within the jurisdictions of the Otay WD, Water Authority, and MWD to utilize imported water supply. The Water Authority and MWD have an established process that ensures supplies are being planned to meet future growth. Any annexations and revisions to established land use plans are captured in the SANDAG updated forecasts for land use planning, demographics, and economic projections. SANDAG serves as the regional, intergovernmental planning agency that develops and provides forecast information. The Water Authority and MWD update their demand forecasts and supply needs based on the most recent SANDAG forecast approximately every five years to coincide with preparation of their urban water management plans. Prior to the next forecast update, local jurisdictions with land use authority may require water supply assessment and/or verification reports for proposed land developments that are not within the Otay WD, Water Authority, or MWD jurisdictions (i.e., pending or proposed annexations) or that have revised land use plans with either lower or higher development intensities than reflected in the existing growth forecasts. Proposed land areas with pending or proposed annexations, or revised land use plans, typically result in creating higher demand and supply requirements than previously anticipated. The Otay WD, Water Authority, and MWD next demand forecast and supply requirements and associated planning documents would then capture any increase or decrease in demands and required supplies as a result of annexations or revised land use planning decisions. MWD’s IRP identifies a mix of resources (imported and local) that, when implemented, will provide 100 percent reliability for full-service demands through the attainment of regional targets set for conservation, local supplies, State Water Project supplies, Colorado River supplies, groundwater banking, and water transfers. The 2015 IRP Update describes an adaptive management strategy to protect the region from future supply shortages. This Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 44 adaptive management strategy has five components: achieve additional conservation savings, develop additional local water supplies, maintain Colorado River Aqueduct supplies, stabilize State Water Project supplies, and maximize the effectiveness of storage and transfer. MWD’s 2015 IRP has a plan for identifying and implementing additional resources that expand the ability for MWD to meet future changes and challenges as necessary to ensure future reliability of supplies. The proper management of these resources help to ensure that the southern California region, including San Diego County, will have adequate water supplies to meet long-term future demands. MWD adopted its 2020 UWMP, in accordance with state law, on May 19, 2021. The resource targets included in the preceding 2015 IRP Update serve as the foundation for the planning assumptions used in the 2020 UWMP. MWD’s 2020 UWMP contains a water supply reliability assessment that includes a detailed evaluation of the supplies necessary to meet demands over a 20-year period in average, single dry year, and multiple dry year periods. As part of this process, MWD also uses the current SANDAG regional growth forecast in calculating regional water demands for the Water Authority’s service area. As stated in MWD’s 2020 UWMP, the plan may be used as a source document for meeting the requirements of SB 610 and SB 221 until the next scheduled update is completed in 5 years (2025). The 2020 UWMP includes a “Justifications for Supply Projections” in Appendix A.3, which provides detailed documentation of the planning, legal, financial, and regulatory basis for including each source of supply in the plan. In the Findings Section of the Executive Summary of their 2020 UWMP, MWD states that MWD has supply capacities that would be sufficient to meet expected demands from 2025 through 2045 under the single dry-year and multiple dry-year conditions. MWD has plans for supply implementation and continued development of a diversified resource mix including programs in the Colorado River Aqueduct, State Water Project, Central Valley Transfers, local resource projects, and in-region storage that enables the region to meet its water supply needs. MWD’s 2020 UWMP identifies potential reserve supplies in the supply capability analysis which could be available to meet the unanticipated demands. The County Water Authority Act, Section 5 subdivision 11, states that the Water Authority “as far as practicable, shall provide each of its member agencies with adequate supplies of water to meet their expanding and increasing needs.” As part of preparation of a written water supply assessment report, an agency’s shortage contingency analysis should be considered in determining sufficiency of supply. Section 11 of the Water Authority’s 2020 UWMP contains a detailed shortage contingency analysis that addresses a regional catastrophic shortage situation and drought management. The analysis demonstrates that the Water Authority and its member agencies, through the Integrated Contingency Plan, Emergency Storage Project, Carlsbad Desalination Project, and Water Shortage Contingency Plan are taking actions to prepare for and appropriately handle an interruption of water supplies. The 2020 Water Shortage Contingency Plan provides the Water Authority and its member agencies with a series of potential actions to take when faced Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 45 with a shortage of imported water supplies from MWD due to prolonged drought or other supply shortfall conditions. The actions will help the region avoid or minimize the impacts of shortages and ensure an equitable allocation of supplies. The WSA&V Report identifies and describes the processes by which water demand projections for the proposed Otay Ranch Town Center Redevelopment project will be fully included in the water demand and supply forecasts of the Urban Water Management Plans and other water resources planning documents of the Water Authority and MWD. Water supplies necessary to serve the demands of the proposed Otay Ranch Town Center Redevelopment project, along with existing and other projected future users, as well as the actions necessary and status to develop these supplies, have been identified in the Otay Ranch Town Center Redevelopment project WSA&V Report and will be included in the future water supply planning documents of the Water Authority and MWD. This WSA&V Report includes, among other information, an identification of existing water supply entitlements, water rights, water service contracts, water supply projects, or agreements relevant to the identified water supply needs for the proposed Otay Ranch Town Center Redevelopment project. This WSA&V Report assesses, demonstrates, and documents that sufficient water supplies are planned for and are intended to be available over a 20-year planning horizon, under normal conditions and in single and multiple dry years to meet the projected demand of the proposed Otay Ranch Town Center Redevelopment project and the existing and other planned development projects to be served by the Otay WD. Table 6 presents the forecasted balance of water demands and required supplies for the Otay WD service area under average or normal year conditions. These numbers are taken from Otay WD’s 2020 UWMP. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 46 Table 6 Projected Balance of Water Demands and Supplies Normal Year Conditions (acre feet) Description FY 2025 FY 2030 FY 2035 FY 2040 FY 2045 Demands Otay WD Demands 37,953 40,261 43,185 47,013 50,505 Active Conservation Savings (2,731) (2,351) (2,285) (2,333) (1,984) Passive Conservation Savings (1,757) (2,192) (2,364) (2,707) (3,050) AFG – Sunbow II, Phase 3 84.7 84.7 84.7 84.7 84.7 AFG – ORTC Redevelopment 121 121 121 121 121 Total Demand 33,671 35,924 38,742 41,973 45,471 Supplies Water Authority Supply 29,171 30,924 33,642 36,773 40,171 Recycled Water Supply 4,500 5,000 5,100 5,200 5,300 Total Supply 33,671 35,924 38,742 41,973 45,471 Supply Surplus/(Deficit) 0 0 0 0 0 Table 7 presents the forecasted balance of water demands and supplies for the Otay WD service area under single dry and multiple dry year conditions. Hot, dry weather may generate urban water demands that are about 7-8% percent greater than normal. The recycled water supplies are assumed to be unchanged in a dry year. Table 7 Projected Balance of Water Demands and Supplies Single Dry and Multiple Dry Year Conditions (acre feet) Normal Year Single Dry Year Multiple Dry Years FY 2022 First Dry Year First Dry Year Second Dry Year Third Dry Year Demands Otay WD Demands 33,527 35,714 36,010 37,988 38,781 Total Demand 33,527 35,714 36,010 37,988 38,781 Supplies Water Authority Supply 29,639 31,714 32,010 33,788 34,381 Recycled Water Supply 3,888 4,000 4,000 4,200 4,400 Total Supply 33,527 35,714 36,010 37,988 38,781 Supply Surplus/(Deficit) 0 0 0 0 0 The Water Authority could implement its WSCP. In this instance, the Water Authority may have to allocate supply shortages based on its equitable allocation methodology in its WSCP. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 47 Dry year demands assumed to generate a 7% increase in demand over normal conditions for a single dry year. For multiple dry years an 8% increase in demand over normal conditions is projected in the first year, 14% in the second year and a 16% increase in the third dry year in addition to new demand growth. In evaluating the availability of sufficient water supply, the Otay Ranch Town Center Redevelopment project development proponents will be required to participate in the development of alternative water supply project(s). This can be achieved through payment of the New Water Supply Fee adopted by the Otay WD Board in May 2010. These water supply projects are in addition to those identified as sustainable supplies in the current Water Authority and MWD UWMP, IRP, Master Plans, and other planning documents. These new water supply projects are in response to the regional water supply issues related to climatological, environmental, legal, and other challenges that impact water source supply conditions, such as the court rulings regarding the Sacramento-San Joaquin Delta and the current ongoing western states drought conditions. These new additional water supply projects are not currently developed and are in various stages of the planning process. The Otay WD water supply development program includes but is not limited to projects such as the Middle Sweetwater River Basin Groundwater Well project and the Rancho del Rey Well Groundwater Well Project. The Water Authority and MWD’s next forecasts and supply planning documents would capture any increase in water supplies resulting from any new water resources developed by the Otay WD. The Otay WD acknowledges the ever-present challenge of balancing water supply with demand and the inherent need to possess a flexible and adaptable water supply implementation strategy that can be relied upon during normal and dry weather conditions. The responsible regional water supply agencies have and will continue to adapt their resource plans and strategies to meet climate, environmental, and legal challenges so that they may continue to provide water supplies to their service areas. The regional water suppliers along with Otay WD fully intend to maintain sufficient reliable supplies through the 20-year planning horizon under normal, single, and multiple dry year conditions to meet the projected demand of the Otay Ranch Town Center Redevelopment project, along with existing and other planned development projects within the Otay WD service area. This WSA&V Report assesses, demonstrates, and documents that sufficient water supplies are planned for and are intended to be acquired, as well as the actions necessary and status to develop these supplies, to meet projected water demands of the Otay Ranch Town Center Redevelopment project as well as existing and other reasonably foreseeable planned development projects within the Otay WD for a 20-year planning horizon, in normal and in single and multiple dry years. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 48 Source Documents Otay Ranch Town Center Redevelopment SB 610 and SB 221 Compliance request letter received Jan. 19, 2023. Otay Water District, “Otay Water District 2020 Urban Water Management Plan Update”, May 2021. CH2M and Otay Water District, “Otay Water District 2015 Urban Water Management Plan Update”, May 2016. Carollo and Otay Water District, 2015 Integrated Water Resources Plan Update, June 2015. San Diego County Water Authority, “Final 2020 Urban Water Management Plan, May 2021. MWD Water District of Southern California, “2020 Urban Water Management Plan,” May 2021. NBS Lowry, “Middle Sweetwater River System Study Water Resources Audit,” June 1991. Michael R. Welch, “Middle Sweetwater River System Study Alternatives Evaluation,” May 1993. Michael R. Welch, “Middle Sweetwater River Basin Conjunctive Use Alternatives,” September 1994. Geoscience Support Services, Inc., “Otay Mesa Lot 7 Well Investigation,” May 2001. Boyle Engineering Corporation, “Groundwater Treatment Feasibility Study Ranch del Rey Well Site,” September 1996. Agreement for the Purchase of Treated Water from the Otay Water Treatment Plant between the County of San Diego and the Otay Water District. Agreement between the San Diego County Water Authority and Otay Water District regarding Implementation of the East County Regional Treated Water Improvement Program. Agreement between the San Diego County Water Authority and Otay Water District for Design, Construction, Operation, and Maintenance of the Otay 14 Flow Control Facility Modification. Agreement between the Otay Water District and the County of San Diego for Purchase of Reclaimed Water from the South Bay Water Reclamation Plant. Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 49 Appendix A Otay Ranch Town Center Redevelopment Project Vicinity Map Otay Water District Water Supply Assessment and Verification Report Otay Ranch Town Center Redevelopment Project 50 Appendix B Otay Ranch Town Center Redevelopment Project Development Plan Otay Water District Board of Directors Meeting March 1, 2023 Water Supply Assessment & Verification Report for the City of Chula Vista Otay Ranch Town Center Redevelopment Project SB 610 & SB 221 Compliance EXHIBIT C BACKGROUND •Senate Bills 610 and 221, effective on 1/1/2002, with the intent to improve the link between water supply availability and land use decisions. •SB 610 requires a Water Supply Assessment (WSA) and SB 221 requires a Water Supply Assessment & Verification (WSA&V) to be included in the CEQA documents for a project. •Board approval required for submittal of the WSA&V Report to the City of Chula Vista. City of Chula Vista Otay Ranch Town Center Redevelopment Project •The project is the redevelopment 58.49 acres of the existing Otay Ranch Town Center. •The existing land use of the Otay Ranch Town Center is designated commercial and will need to be rezoned to accommodate a proposed residential component. •The City has received an entitlement application for an amendment to the Otay Ranch General Development Plan, a Freeway Commercial Sectional Planning Area Amendment, and a tentative map to subdivide the property. •The City is preparing an EIR addendum for the project that will include the WSA&V report. Project Description The existing Otay Ranch Town Center site includes five lots (Lots 1, 2, 3, 4, and 5) on approximately 87.25 acres. The project proposes to redevelop the northwest portion of Lots 1 and 4 which make up 58.49 acres of the overall site with a total of 15.66 acres affected by redevelopment. The redevelopment would add 840 residential units, a park, and plaza space, and rebuild, as ground-floor commercial, approximately 37,200 square-feet of commercial space. The proposed footprint of 15.66 acres would consist of 11.82 acres of mixed-use area, 0.92 acres of park and plaza space, and 2.92 acres of private streets. Potable & Recycled Water Demand •Expected potable water demand is 263,807 gallons per day or 295.5 acre-feet per year (AFY). •Original projected demands for this project in the District’s 2015 Water Facilities Master Plan was 174.5 AFY for commercial use. •The 121 AFY increase will be accounted for through the Accelerated Forecasted Growth demand increment of the County Water Authority’s 2020 Urban Water Management Plan. •The project will use recycled water for irrigation of landscaped common areas and the park and plaza space. The projected recycled water demand for the project is 13,300 gpd, or about 14.9 AFY. Otay Water District Projected Balance of Supply and Demand Description FY 2025 FY 2030 FY 2035 FY 2040 FY 2045 Demands Otay WD Demands 37,953 40,261 43,185 47,013 50,505 Active Conservation Savings (2,731)(2,351)(2,285)(2,333)(1,984) Passive Conservation Savings (1,757)(2,192)(2,364)(2,707)(3,050) AFG –Sunbow II, Phase 3 84.7 84.7 84.7 84.7 84.7 AFG –ORTC Redevelopment 121 121 121 121 121 Total Demand 33,671 35,924 38,742 41,973 45,471 Supplies Water Authority Supply 29,171 30,924 33,642 36,773 40,171 Recycled Water Supply 4,500 5,000 5,100 5,200 5,300 Total Supply 33,671 35,924 38,742 41,973 45,471 Supply Surplus/(Deficit)0 0 0 0 0 Projected Balance of Water Demands and Supplies Normal Year Conditions (acre feet) CONCLUSION •Water demand and supply forecasts are included in the planning documents of Metropolitan Water District of Southern California, San Diego County Water Authority, and the Otay Water District. •Actions necessary to develop the identified water supplies are documented. •The SB 610 & SB 221 WSA&V Report documents that sufficient water supplies are planned for and available over the next 20 years. •The Board has met the intent of the SB 610 and SB 221 statutes. Questions? STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 1, 2023 SUBMITTED BY: Kevin Cameron, Engineering Manager PROJECT: Various DIV. NO. ALL APPROVED BY: Michael J. Long, Chief of Engineering Jose Martinez, General Manager SUBJECT: Informational Item – Second Quarter Fiscal Year 2023 Capital Improvement Program Report GENERAL MANAGER’S RECOMMENDATION: No recommendation. This is an informational item only. COMMITTEE ACTION: Please see Attachment A. PURPOSE: To update the Board about the status of all Capital Improvement Program (CIP) expenditures and to highlight significant issues, progress, and milestones on major active construction projects. ANALYSIS: To keep up with growth and to meet our ratepayers' expectations to adequately deliver safe, reliable, cost-effective, and quality water, each year the District staff prepares a Six-Year CIP Plan that identifies the District’s infrastructure needs. The CIP is comprised of four categories consisting of backbone capital facilities, replacement/renewal projects, capital purchases, and developer reimbursement projects. The Second Quarter Fiscal Year 2023 update is intended to provide a detailed analysis of progress in completing these projects within the allotted time and budget of $12.579 million. Expenditures through Agenda Item 9a 2 the second quarter totaled approximately $7.584 million. Approximately 40% of the Fiscal Year 2023 expenditure budget was spent (see Attachment B). FISCAL IMPACT: Joe Beachem, Chief Financial Officer No fiscal impact as this is an informational item only. STRATEGIC GOAL: This Program supports the District’s Mission statement, “To provide exceptional water and wastewater service to its customers, and to manage District resources in a transparent and fiscally responsible manner” and the General Manager’s Vision, "To be a model water agency by providing stellar service, achieving measurable results, and continuously improving operational practices." LEGAL IMPACT: None. KC/MJL:jf https://otaywater365.sharepoint.com/sites/engoperating/Shared Documents/Forms_New/D-Construction/CIP Quarterly Reports/CIP Qtr Reports/FY 2023/Q2/Staff Report/BD 03-01-2023 Staff Report Second Quarter FY 2023 CIP Update.docx Attachments: Attachment A – Committee Action Attachment B - Fiscal Year 2023 Second Quarter CIP Expenditure Report Attachment C – Presentation ATTACHMENT A SUBJECT/PROJECT: VARIOUS Informational Item – Second Quarter Fiscal Year 2023 Capital Improvement Program Report COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on February 14, 2023. The Committee supported staff's recommendation and the following comments were made: • This report is an informational item to present the Second Quarter status of the FY 2023 Capital Improvement project expenditures and to highlight progress and milestones on the District’s major projects. • As indicated in the PowerPoint presentation (Attachment C), the District’s FY 2023 CIP budget consists of 128 projects. Staff stated that the $12.58 million CIP budget is divided into four categories: o Capital Facilities $4.88 million o Replacement/Renewal $6.43 million o Capital Purchases $1.26 million o Developer Reimbursement $2 thousand • Staff reviewed the PowerPoint presentation with the Committee and indicated that the expenditures through the second quarter of FY 2023 totaled approximately $5 million, which is approximately 40% of the District’s fiscal year budget. Following the discussion, the Committee supported staff’s recommendation and presentation to the full board as an informational item. FISCAL YEAR 2023 2ND QUARTER REPORT (Expenditures through 12/31/22) ($ In Thousands) ATTACHMENT B 2023 12/31/22 CIP No.Description Project Manager FY 2023 Budget Expenses Balance Expense to Budget %Budget Expenses Balance Expense to Budget %Comments CAPITAL FACILITY PROJECTS - P2040 Res - 1655-1 Reservoir 0.5 MG Marchioro 275$ 70$ 205$ 25%5,750$ 1,105$ 4,645$ 19%Project is currently 60% designed. P2405 PL - 624/340 PRS, Paseo Ranchero and Otay Valley Road Cameron 125 19 106 15%1,500 62 1,438 4%Related to P2553. See P2553 for comments. P2451 Otay Mesa Desalination Conveyance and Disinfection System Kennedy 1 - 1 0%3,940 3,823 117 97% If the project moves forward, the District’s project has completed the environmental review as required by CEQA and NEPA. The Presidential permit has expired and a new permit would be required. P2453 SR-11 Utility Relocations Marchioro 5 23 (18) 460%3,000 2,330 670 78% Expenditures and schedule driven by Caltrans. Construction completed Q4 FY 2022. Caltrans Utility Agreement No. 33718 scheulded for close out Q3 FY 2023. P2460 I.D. 7 Trestle and Pipeline Demolition Beppler 100 43 57 43%750 218 532 29% Environmental report prepared for presentation at the Jan 2023 Board meeting. Preparation of submission to City of Chula Vista to be performed in Q3. P2485 SCADA - Infrastructure and Communications Replacement Kerr 35 - 35 0%2,550 2,448 102 96% On Target; Infrastructure and communications replacement. ~ The project is nearing its end and due to close at the end of this FY. Currently Techknowsion is finalizing the configuration and will soon conduct testing of the system with the IT and Operations Team. P2516 PL - 12-Inch, 640 Zone, Jamacha Road - Darby/Osage Marchioro 5 - 5 0%1,000 - 1,000 0% No expenditures anticipated in FY 2023. Completion of construction anticipated FY 2028. P2521 Large Meter Vault Upgrade Program Carey 25 - 25 0%620 473 147 76% Meter Services has been short handed so CIP work will not start until Q3. P2553 Heritage Road Bridge Replacement and Utility Relocation Cameron 50 11 39 22%5,050 271 4,779 5% Project is 100% designed. Project will bid with the City of CV's Heritage Road Bridge project. Reimburement Agreement will go to the March Board. The City plans to bid the project at the end of calendar year 2023. P2584 Res - 657-1 and 657-2 Reservoir Demolitions Marchioro - - - 0%50 - 50 0%No expenditures anticipated in FY 2023. P2608 PL - 8-inch, 850 Zone, Coronado Avenue, Chestnut/Apple Cameron 100 2 98 2%1,820 390 1,430 21% Phase I of project accepted by the District FY 2021; Phase II starts after 3 year paving moratorium. P2611 Quarry Road Bridge Replacement and Utility Relocation Cameron 10 - 10 0%375 124 251 33% This is a County of SD driven project, and the County has put this project on hold. P2612 PL - 12-inch, 711 Zone, Paso de Luz/Telegraph Canyon Road Beppler 500 30 470 6%1,250 277 973 22% Notice to Proceed has been issued, mobilization is awaiting materials acquisition, construction is to be completed in Q4. P2614 485-1 Reservoir Interior/Exterior Coating Cameron 650 43 607 7%1,375 43 1,332 3%Construction to begin in Q3 P2617 Lobby Security Enhancements Payne 1 - 1 0%225 179 46 80%Pending a needs assessment wt safety & security. P2619 PS - Temporary Lower Otay Pump Station Redundancy Marchioro 14 - 14 0%3,370 3,364 6 100% No expenditures anticipated in FY 2023. Construction completed Q1 FY 2022. Project one year warranty completed Q1 FY 2023. Project will be closed out for FY 2024. P2623 Central Area to Otay Mesa Interconnection Pipelines Combination Air/Vacuum Valve Replacements Marchioro 10 - 10 0%600 219 381 37% No expenditures anticipated in FY 2023. Completion of construction anticipated FY 2026. P2626 803-4 Reservoir Water Quality Improvements – PAX System Purchase Coburn-Boyd 10 - 10 0%325 303 22 93%This project is complete. The remaining budget wiill not be used. P2630 624-3 Reservoir Automation of Chemical Feed System Beppler 300 - 300 0%675 16 659 2%No activity in Q2, transfer of project to new project manager. P2638 Buildings and Grounds Refurbishments Payne 173 2 171 1%400 54 346 14%Admin landscape update solicitation out Q2 with install Q3-4. P2639 Vista Diego Hydropneumatic Pump Station Replacement Marchioro 175 90 85 51%3,700 344 3,356 9% Design will be completed by District staff in-house with support of District as-needed electrical, corrosion, and survey consultants since the design consultant's agreement was terminated Q4 FY 2022. Statff's in-house design scheduled for completion Q2 FY 2024. P2642 Rancho Jamul Pump Station Replacement Marchioro 50 17 33 34%2,500 142 2,358 6% Project coordinated with 1655-1 Reservoir (P2040). See P2040 for updates. P2646 North District Area Cathodic Protection Improvements Marchioro 50 - 50 0%1,200 1 1,199 0% No expenditures anticipated in FY 2023. Completion of construction anticipated FY 2026. P2647 Central Area Cathodic Protection Improvements Marchioro 3 35 (32) 1167%2,000 47 1,953 2% Cathodic protection improvements completed at the 980-2 Pump Station during emergency repair work. Completion of construction anticipated FY 2028. P2649 HVAC Equipment Purchase Payne 64 5 59 8%279 109 170 39%Various HVAC replacements FY23-27. P2652 520 to 640 Pressure Zone Conversion Marchioro 30 - 30 0%250 37 213 15%Project is on hold until PDR for P2195 & P2196 is completd. P2654 Heritage Road Interconnection Improvements Marchioro 10 - 10 0%200 40 160 20% No expenditures anticipated in FY 2023. Project on hold pending coordination with City of San Diego. P2658 832-1 Pump Station Modifications Marchioro 5 - 5 0%600 10 590 2% No expenditures anticipated in FY 2023. Completion of construction anticipated FY 2028. P2659 District Boardroom Improvements Kerr 25 - 25 0%300 185 115 62% Enhancements for upgrade of board room AV hardware and software components. Staff is working with the integrator on a few modern enhancements. ~ No Change. FISCAL YEAR-TO-DATE, 12/31/22 LIFE-TO-DATE, 12/31/22 https://otaywater365.sharepoint.com/sites/engoperating/Shared Documents/Forms_New/D-Construction/CIP Quarterly Reports/CIP Qtr Reports/FY 2023/Q2/Expenditures/FY2023 2nd Qtr CIP Exp Final.xlsx Page 1 of 4 2/8/2023 FISCAL YEAR 2023 2ND QUARTER REPORT (Expenditures through 12/31/22) ($ In Thousands) ATTACHMENT B 2023 12/31/22 CIP No.Description Project Manager FY 2023 Budget Expenses Balance Expense to Budget %Budget Expenses Balance Expense to Budget %Comments FISCAL YEAR-TO-DATE, 12/31/22 LIFE-TO-DATE, 12/31/22 P2663 Potable Water Pressure Vessel Program Marchioro 30 2 28 7%2,320 288 2,032 12% Inspection of four (4) pressure vessels tentatively scheduled for FY 2023. Design to replace 711 Pump Station surge tank in progress. P2664 Otay Mesa Dual Piping Modification Program Beppler 50 - 50 0%350 36 314 10% Alterntatives have been identified, coordination with Finance is required to consider financial implications of potential changes P2665 PL - 12-inch Pipeline Replacement, 870 Zone, Cactus Road Marchioro - - - 0%125 - 125 0% No expenditures anticipated in FY 2023. Completion of construction scheduled beyond six-year planning budget. P2666 Low Head and High Head Pump Stations Demolition Marchioro - - - 0%200 - 200 0% No expenditures anticipated in FY 2023. Completion of construction scheduled beyond six-year planning budget. P2667 Small Meter Testing Bench Carey 50 133 (83) 266%250 133 117 53% The meter test bench was installed in Q1. Payment was sent in Q2 FY 2023. P2669 Fuel Tank Safety and Integrity Rahders 45 - 45 0%100 3 97 3%Activity expected Q3. P2674 System Pressure Reducing Program Beppler 10 - 10 0%100 16 84 16% Updates to hydraulic modeling of hydropneumatic zones has corrected several potential high pressure areas. Additional areas will be researched as time and budget allows. P2676 980-2 PS Miscellaneous Replacements Marchioro 100 97 3 97%675 405 270 60% Replacement 600 hosepower, 4,160 VAC pump motor arrived Q2 FY 2023. Planing and design to replace electrical equipment in progress. Repairs to existing electrical gear ongoing. P2683 Pump Station Safety, Monitoring, and Automation Improvements Marchioro 50 21 29 42%500 36 464 7%Completion of construction scheduled FY 2028. P2684 Zero Emission Vehicles and Charging Infrastructure Cameron 150 4 146 3%2,000 4 1,996 0%Planning Stage. Selecting consultants. P2688 Standby Power Renovations - Potable Water Rahders 15 6 9 40%750 6 744 1%$25,984 outstanding. R2117 RWCWRF Disinfection System Improvements Beppler 800 94 706 12%1,800 503 1,297 28% 60% design submitted and reviewed during Q2. 90% design to be submitted and reviewed in Q3. R2120 RWCWRF Filtered Water Storage Tank Improvements Cameron 15 - 15 0%700 595 105 85%Additional material purchase scheduled for Q3. R2146 Recycled Pipeline Cathodic Protection Improvements Marchioro 500 16 484 3%1,200 228 972 19%Completion of construction scheduled Q3 FY 2023. R2153 Recycled Water Pressure Vessel Program Marchioro 1 10 (9) 1000%80 10 70 13% Inspection of the 680-1R Pump Station surge tank completed Q2 FY 2023. S2012 San Diego County Sanitation District Outfall and RSD Outfall Replacement Beppler 200 - 200 0%2,400 1,111 1,289 46%County invoicing typically occurs in Q4, no activities in Q2. S2043 RWCWRF Sludge Handling System Beppler 1 - 1 0%185 129 56 70%No activities in Q2, limited planning work anticipated in FY 2023. S2061 RWCWRF Aeration Controls Consolidation & Optimization Upgrades (S)Beppler 30 - 30 0%220 78 142 35% Programming activities were completed in FY 2022 Q4. Operations to be monitored in FY 2023 to ensure proper functioning. S2071 San Diego Metro Wastewater Capital Improvements Kennedy 36 18 18 50%721 236 485 33% Annual City of S.D. invoicing covers this project. No District involvement in design and construction. Total Capital Facility Projects Total:4,884 791 4,093 16%60,330 20,431 39,899 34% REPLACEMENT/RENEWAL PROJECTS P2058 PL - 20-Inch, 1296 Zone, Proctor Valley Road from Melody Road to Highway 94 Beppler 50 10 40 20%1,250 20 1,230 2% Transfer of project to new project manager will delay design progress. P2083 PS - 870-2 Pump Station Replacement Marchioro 10 1 9 10%19,850 19,735 115 99% Construction completed Q1 FY 2022. Project one year warranty period completed Q1 FY 2023. Project will be closed out for FY 2024. P2171 PL - 20-Inch, 1296 Zone, Proctor Valley Road from Pioneer Way to Melody Road Beppler 80 9 71 11%2,500 23 2,477 1%Transfer of project to new project manager will delay progress. P2174 PS - 1090-1 Pump Station Upgrade Beppler 10 2 8 20%1,150 1,127 23 98% Construction completed in Q3 FY 2022.Project one year warranty scheduled to be completed Q3 FY 2023. P2195 PL - 24 - Inch, 640 Zone, Campo Road - Regulatory Site/Millar Ranch Beppler 20 9 11 45%1,415 16 1,399 1%Limited planning anticipated in FY 2023. P2196 PL - 24 - Inch, 640 Zone, Millar Ranch Road to 832-1 Pump Station Beppler 20 9 11 45%965 15 950 2%Limited planning anticipated in FY 2023. P2533 1200-1 Reservoir Interior & Exterior Coating Cameron 5 2 3 40%1,275 1,171 104 92%Project is in the warranty period. P2539 South Bay Bus Rapid Transit (BRT) Utility Relocations Cameron 15 - 15 0%1,090 1,039 51 95%Project has been completed. P2543 850-1 Reservoir Interior/Exterior Coating Cameron 5 - 5 0%1,270 1,087 183 86%Project is in the warranty period. P2546 980-2 Reservoir Interior/Exterior Coating Cameron 10 - 10 0%1,705 1,690 15 99%Project has been completed. P2562 Res - 571-1 Reservoir Cover/Liner Replacement Marchioro 10 - 10 0%2,810 2,793 17 99% As part of the larger CIP P2083 870-2 Pump Station project, the 571- 1 Reservoir was placed back into service April 2018. Project will be closed out for FY 2024. P2563 Res - 870-1 Reservoir Cover/Liner Replacement and Supporting Projects Marchioro 250 141 109 56%5,700 441 5,259 8% A new CIP will be created for the future 870-2 Reservoir since the planned reservoir volume changed from 0.6 to 3.4 MG. P2565 803-2 Reservoir Interior/Exterior Coating & Upgrades Cameron 10 - 10 0%1,100 991 109 90%Project has been completed. P2567 1004-2 Reservoir Interior/Exterior Coating & Upgrades Cameron 690 133 557 19%1,275 218 1,057 17%Construction to begin in Q3. P2578 PS - 711-2 (PS 711-1 Replacement and Expansion) - 14,000 GPM Marchioro 50 1 49 2%2,000 44 1,956 2% Design of a cost savings solution to restore Pump #3 original capacity in progress. P2593 458-1 Reservoir Interior/Exterior Coating & Upgrades Cameron 50 51 (1) 102%1,050 905 145 86%Project is in the warranty period. P2594 Large Meter Replacement Carey 20 8 12 40%730 517 213 71%On track. P2605 458/340 PRS Replacement, 1571 Melrose Ave Beppler 80 62 18 78%750 667 83 89% Construction substantially completed in Q4 FY 2022. Project one year warranty scheduled to be completed Q4 FY 2023. https://otaywater365.sharepoint.com/sites/engoperating/Shared Documents/Forms_New/D-Construction/CIP Quarterly Reports/CIP Qtr Reports/FY 2023/Q2/Expenditures/FY2023 2nd Qtr CIP Exp Final.xlsx Page 2 of 4 2/8/2023 FISCAL YEAR 2023 2ND QUARTER REPORT (Expenditures through 12/31/22) ($ In Thousands) ATTACHMENT B 2023 12/31/22 CIP No.Description Project Manager FY 2023 Budget Expenses Balance Expense to Budget %Budget Expenses Balance Expense to Budget %Comments FISCAL YEAR-TO-DATE, 12/31/22 LIFE-TO-DATE, 12/31/22 P2609 PL - 8-inch, 1004 Zone, Eucalyptus Street, Coronado/Date/La Mesa Cameron 75 - 75 0%2,100 1,132 968 54% Phase I of project accepted by the District FY 2021; Phase II starts after 3 year paving moratorium. P2610 Valve Replacement Program - Phase 1 Cameron 400 695 (295) 174%2,000 1,649 351 82% Costs for pre-purchase of material due to longer lead times. Material costs have increased as well. P2615 PL - 12-Inch Pipeline Replacement, 803 PZ, Vista Grande Beppler 50 5 45 10%2,600 44 2,556 2%Preliminary design phase has started. P2616 PL - 12-Inch Pipeline Replacement, 978 Zone, Pence Drive/Vista Sierra Drive Beppler 1,000 28 972 3%2,875 316 2,559 11% Notice to Proceed has been issued, mobilization is awaiting materials acquisition, construction is to be completed in Q4. P2627 458/340 PRS Replacement, 1505 Oleander Avenue Beppler 80 236 (156) 295%750 702 48 94% Construction substantially completed in Q4 FY 2022. Project one year warranty scheduled to be completed Q4 FY 2023. P2631 1485-2 Reservoir Interior/Exterior Coating & Upgrades Cameron 5 - 5 0%1,250 - 1,250 0%Expenditures planned for Q4. P2653 1200 Pressure Zone Improvements Marchioro 100 5 95 5%850 688 162 81% Construction completed Q1 FY 2023. Project one year warranty period completed Q1 FY2024. Project will be closed out for FY2024 P2655 La Presa Pipeline Improvements Beppler 50 3 47 6%1,750 281 1,469 16%Transfer of project to new project manager will delay progress. P2656 Regulatory Site Desilting Basin Improvements Beppler 5 - 5 0%150 7 143 5% No activities occurred during Q2. Operations to implement improvements as time allows. P2657 1485-1 Reservoir Interior/Exterior Coating & Upgrades Cameron - - - 0%950 - 950 0%No expenditures in FY 2023. P2661 Replacement of Backflow Prevention Devices on Pipeline Interconnections on Otay Mesa Beppler 75 - 75 0%375 8 367 2% No activities occurred during Q2. Operations to implement improvements as time allows. P2662 Potable Water Meter Change Out Carey 20 - 20 0%7,950 - 7,950 0%On track. P2670 Administration and Operations Roof Repairs and Replacement Payne 5 - 5 0%350 - 350 0%Ongoing maintenance; replacement FY25-28. P2671 980 Reservoirs Altitude Valve Vaults Renovation Beppler 25 45 (20) 180%650 679 (29) 104% Construction substantially completed in Q4 FY 2022. Project one year warranty scheduled to be completed Q4 FY 2023. Budget increased by GM authority in Q2. P2672 District Roof Repairs and Replacement Program Payne 5 - 5 0%340 - 340 0%Ongoing maintenance; various PS replacement FY25-27. P2673 803-4 Reservoir Interior/Exterior Coating Cameron - - - 0%250 - 250 0%No expenditures in FY 2023. P2675 458-1 and 458-2 Reservoirs Site Pavement Refurbishment Cameron 250 5 245 2%450 5 445 1%Design 50% complete. P2677 PL - 16-Inch, 870 Zone, La Media Road and Airway Road Utility Relocations Beppler 1,300 2,204 (904) 170%1,800 2,223 (423) 124% City of SD opened construction bids in Q2, invoice received in Q2 and payment to be made in Q3. Budget increased by Board at January 2023 meeting. P2678 Jamacha Boulevard Utility Relocation Beppler 25 - 25 0%250 - 250 0%Transfer of project to new project manager will delay progress. P2679 520-3 Reservoir Recirculation Static Mixer Replacement Project Beppler 30 - 30 0%200 147 53 74% Construction completed in Q3 FY 2022. Project one year warranty scheduled to be completed Q3 FY 2023. P2680 PL - 12-inch Pipeline Replacement, 1530 Zone, Vista Diego Road Marchioro 25 2 23 8%425 50 375 12% Project will be designed as part of the larger Vista Diego Hydropneumatic Pump Station Replacement Project (CIP P2639). See P2639 for updates. P2681 PL-12-Inch, 1655 Zone, Presilla Drive Pipeline Replacement Marchioro 110 22 88 20%1,650 129 1,521 8% Project will be designed as part of the larger 1655-1 Reservoir Project (CIP P2040). See P2040 for updates. P2682 AMI Project Carey 200 13 187 7%300 41 259 14%Currently working on bid requirements for Q3 installation. P2685 980/711 PRS Renovation - Proctor Valley Rd Marchioro 10 - 10 0%650 - 650 0%No expenses anticpated in FY 2023. P2686 870 PZ Seismic Vault Renovation Beppler 5 - 5 0%350 - 350 0%No expenditures in Q2, planning level work may occur in FY 2023. P2687 Steele Canyon Rd Bridge 803 PZ 20-inch WL Renovation Beppler 100 36 64 36%600 36 564 6% Sample repair performed in Q2, evaluated to be done in Q3 to determine the project scope of work. P2689 944-1-9 Pump Station Meter Vault Renovation Beppler 10 - 10 0%200 - 200 0%Transfer of project to new project manager will delay progress. P2690 850-4 Reservoir Interior/Exterior Coating Cameron - - - 0%1,850 - 1,850 0%No expenditures in FY 2023. R2121 Res - 944-1 Reservoir Cover/Liner Replacement Marchioro 30 - 30 0%2,400 25 2,375 1% No expenditures anticipated in FY 2023. Replacement scheduled for FY 2025 since existing cover/liner testing completed in FY 2020 suggested four to six years remaining life. R2144 RWCWRF Roofing Replacement and Natural Light Enhancement (R)Payne 5 - 5 0%115 103 12 90%Completed. R2148 Large Meter Replacement - Recycled Carey 8 - 8 0%88 35 53 40%On track. R2152 Recycled Water Meter Change-Out Carey 10 - 10 0%270 - 270 0%On track. R2156 RecPL - 14-inch RWCWRF Effluent Force Main Improvements Marchioro 10 - 10 0%800 247 553 31%No expenses anticpated in FY 2023. R2157 RWCWRF Backwash Supply Pumps Upgrade Beppler 50 21 29 42%300 48 252 16% 60% design submitted and reviewed during Q2. 90% design to be submitted and reviewed in Q3. R2158 RWCWRF Stormwater Pond Improvements (R)Beppler 5 - 5 0%175 - 175 0% No activities occurred during Q2. Planning to be coordinated with R2117 to determine impacts. R2159 RecPL - 16-Inch, 680 Zone, Olympic Parkway Recycled Pipeline Replacement Beppler 400 114 286 29%6,000 424 5,576 7% Construction bids were received in Q2, contract to be awarded in Q3 with construction to be completed in FY 2024. R2161 450-1R Reservoir Interior/Exterior Coating & Upgrades Cameron - - - 0%1,565 - 1,565 0%No expenditures in FY 2023. R2163 450-1 RW Res Disinfection Injection Vault Renovation Marchioro 20 - 20 0%300 - 300 0%No expenses anticpated in FY 2023. R2164 450-1 RW Res Stormwater Improvements Marchioro 20 - 20 0%800 - 800 0%No expenses anticpated in FY 2023. S2024 Campo Road Sewer Main Replacement Beppler 5 9 (4) 180%11,080 11,045 35 100% Revegetation efforts will continue as needed to comply with Caltrans permit. https://otaywater365.sharepoint.com/sites/engoperating/Shared Documents/Forms_New/D-Construction/CIP Quarterly Reports/CIP Qtr Reports/FY 2023/Q2/Expenditures/FY2023 2nd Qtr CIP Exp Final.xlsx Page 3 of 4 2/8/2023 FISCAL YEAR 2023 2ND QUARTER REPORT (Expenditures through 12/31/22) ($ In Thousands) ATTACHMENT B 2023 12/31/22 CIP No.Description Project Manager FY 2023 Budget Expenses Balance Expense to Budget %Budget Expenses Balance Expense to Budget %Comments FISCAL YEAR-TO-DATE, 12/31/22 LIFE-TO-DATE, 12/31/22 S2049 Calavo Basin Sewer Rehabilitation - Phase 2 Beppler 50 - 50 0%1,150 67 1,083 6% Planning activities will review scope of work to consider operations hot spots, design is scheduled to recommence in FY 2024. S2050 Rancho San Diego Basin Sewer Rehabilitation - Phase 2 Beppler 10 - 10 0%659 7 652 1%No expenditures in Q2, planning level work may occur in FY 2023. S2054 Calavo Basin Sewer Rehabilitation - Phase 3 Beppler - - - 0%170 - 170 0%No activities planned in FY 2023. S2060 Steele Canyon Pump Station Replacement Beppler - - - 0%800 - 800 0%No activities planned in FY 2023. S2066 Rancho San Diego Basin Sewer Rehabilitation - Phase 3 Beppler - - - 0%65 - 65 0%No activities planned in FY 2023. S2067 RWCWRF Roofing Replacement and Natural Light Enhancement (S)Payne 5 - 5 0%115 102 13 89%Completed. S2069 Cottonwood Sewer Pump Station Renovation Beppler 250 87 163 35%2,750 259 2,491 9% Consultant selection performed in Q2, contract to be awarded and design started in Q3. S2072 RWCWRF Rotary Screen Replacement Beppler 40 2 38 5%600 2 598 0%Planning work for channel repairs continued in Q2. S2074 RWCWRF Stormwater Pond Improvements (S)Beppler 5 - 5 0%175 - 175 0% No activities occurred during Q2. Planning to be coordinated with R2117 to determine impacts. S2076 RWCWRF Grit Chamber Improvements Beppler 30 - 30 0%250 - 250 0%No expenditures in Q2, planning level work may occur in FY 2023. S2077 RWCWRF Blowers Renovation Beppler 30 - 30 0%400 - 400 0%No expenditures in Q2, planning level work may occur in FY 2023. S2079 Steele Canyon Rd Bridge 6-inch Sewer FM Renovation Beppler 100 - 100 0%350 - 350 0% Project design waiting on scope of work for P2687 to be determined, the two projects will be designed together. S2080 Standby Power Renovations - Sewer Rahders 5 - 5 0%200 - 200 0%No activity in FY 2023. Total Replacement/Renewal Projects Total:6,433 3,970 2,463 62%113,377 53,000 60,377 47% CAPITAL PURCHASE PROJECTS P2282 Vehicle Capital Purchases Rahders 795 66 729 8%8,000 5,417 2,583 68% $1,116.5K outstanding, $25K expected. Of the $1,116.5K, $309.3K is a FY 2022 purchase carried over to FY 2023, $358.6K and $247.6K (T606.2K) are FY 2023 purchases, all three charges totaling $915.5K will most likely not arrive until FY 2024 and have to be carried over. P2286 Field Equipment Capital Purchases Rahders 168 1 167 1%3,500 2,220 1,280 63%$103,245.13 outstanding. $25K expected in Q3. P2571 Data Center Network Data Storage and Infrastructure Enhancements Kerr 55 36 19 65%530 455 75 86% Support the continued efforts for the replacement of the District’s current Storage Hardware and associated equipment. Additional improved and support of the District’s core network hardware devices, communication hardware, redundancy switches, etc. ~ No Change P2572 Enterprise Resource Planning (ERP) Replacement Kerr 75 - 75 0%165 - 165 0% Staff embarked on both an RFI for the Utility Billing System and an upgrade path from Tyler Eden to Tyler Munis for the organization’s Financial Record keeping and management.Currently,Tyler Eden is due to sunset March 1,2027.The project timeline for the Financial (ERP)path is 18 to 24 months in duration.Staff intends to 1)request FY24 budget for the new systems and 2)present final budgeting request and staff report to the Board based on discussions with both UB solicited vendor (demonstrations, evaluations,etc.)and pricing from Tyler Munis.Staff will seek additional funding for the project. R2160 Recycled Water Field Equipment Capital Purchases Rahders 100 31 69 31%700 139 561 20%$31K to be expensed in Q3. R2162 Vehicle Capital Purchases - Recycled Rahders 25 64 (39) 256%175 64 111 37%$28.6K to be expensed in Q3. S2075 Field Equipment Capital Purchases Rahders 42 36 6 86%500 130 370 26%$26K outstanding. $5K anticipated Q3. S2078 Vehicle Capital Purchases - Sewer Rahders - - - 0%160 - 160 0%No activity in FY 2023. Total Capital Purchase Projects Total:1,260 234 1,026 19%13,730 8,425 5,305 61% DEVELOPER REIMBURSEMENT PROJECTS P2595 PL - 16-inch, 624 Zone, Village 3N - Heritage Road, Main St/Energy Way Cameron 1 - 1 0%150 - 150 0%This is a developer reimbursement project. R2084 RecPL - 20-Inch, 680 Zone, Village 2 - Heritage/La Media Beppler 1 - 1 0%365 271 94 74% Reimbursement made in FY 2022, awaiting information if entire project is now complete. Total Developer Reimbursement Projects Total:2 - 2 0%515 271 244 53% 129 GRAND TOTAL 12,579$ 4,995$ 7,584$ 40%187,952$ 82,127$ 105,825$ 44% https://otaywater365.sharepoint.com/sites/engoperating/Shared Documents/Forms_New/D-Construction/CIP Quarterly Reports/CIP Qtr Reports/FY 2023/Q2/Expenditures/FY2023 2nd Qtr CIP Exp Final.xlsx Page 4 of 4 2/8/2023 Otay Water District Capital Improvement Program Fiscal Year 2023 Second Quarter (through December 31, 2022) 980 Altitude Vault ATTACHMENT C Background The approved CIP Budget for Fiscal Year 2023 consists of 128 projects that total $12.58 million. These projects are broken down into four categories. 1.Capital Facilities $ 4.88 million 2.Replacement/Renewal $ 6.43 million 3.Capital Purchases $ 1.26 million 4.Developer Reimbursement $ 2 thousand Overall expenditures through the Second Quarter of Fiscal Year 2023 totaled nearly $4,995 million, which is approximately 40% of the Fiscal Year budget. 2 Fiscal Year 2023 Second Quarter Update ($000) CIP CAT Description FY 2023 Budget FY 2023 Expenditures % FY 2023 Budget Spent Total Life-to-Date Budget Total Life-to-Date Expenditures % Life-to-Date Budget Spent 1 Capital Facilities $4,884 $791 16%$60,330 $20,431 34% 2 Replacement/ Renewal $6,433 $3,970 62%$113,377 $53,000 47% 3 Capital Purchases $1,260 $234 19%$13,730 $8,425 61% 4 Developer Reimbursement $2 $0 0%$515 $271 53% Total: $12,579 $4,995 40%$187,952 $85,127 44% 3 Fiscal Year 2023 Second Quarter CIP Budget vs. Expenditures 4 $12,579,000 $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun July FISCAL YEAR PERIOD IN MONTHS FY 2023 Budget Total Expenditures Through 12/31/22 $ 11,950,050 95% 5 CIP Projects in Construction Melrose Avenue & Oleander Avenue 458/340 PRSs Replacement/980 Reservoirs Altitude Valve Vaults Renovation Projects (P2605, P2627 & P2671) Project includes replacement of two pressure reducing stations and the renovation of two altitude valve vaults and all associated work and appurtenances $2.15M Combined Budgets NTP: July 2021 Completed within budget Project Accepted on December 2, 2022 Division No. 2 & 5 6 Location: East Chula Vista/Otay Valley and Mount San Miguel CIP Projects in Construction Paso de Luz/Telegraph Canyon and Vista Grande Vista Sierra Water Line Replacement Project (P2612 & P2616) Replacement of approx. 1,750 linear feet of 12- inch water line, reconnect existing water services and associated work Combined Budget: $5.45M NTP: Aug. 2022 Project within budget 7 Division No. 4 Location: Chula Vista, south of Telegraph Canyon Division No. 5 Location: El Cajon west of Vista Sierra CIP Projects in Construction Recycled Water Pipeline Cathodic Protection Improvements Project (R2146) Replacement and repairs of existing cathodic protection systems on seven (7) recycled water pipelines Combined Budget: $1.2M NTP: June 2022 Contractor was experiencing supply issues Project within budget 8 Division No. 1, 2, 3 Location: Chula Vista, various locations Construction Contract Status 9 PRIOR YEARS Q1 Q2 %YTD %PROJECT TOTAL % P2605, P2627 & P2671 Melrose Ave & Oleander Ave 458/340 PRSs Replacement/980 Reservoir Altitude Valve Vaults Renovation CCL Contracting, Inc. Paul Mochel (Valley CM)$1,289,523 $1,331,523 $31,169 $68,722 $0 5.3%$68,722 5.3%$99,891 7.7%$1,399,601 5.1%100.0%October 2022 P2593 458-1 Reservoir Interior/Exterior Coatings & Upgrades Advanced Industrial Services, Inc. Doug Cook (Alyson)$684,169 $774,169 $7,200 ($81,000)$0 -11.8%($81,000)-11.8%($73,800)-10.8%$668,769 -13.6%100.0%July 2022 R2146 Recycled Water Pipeline Cathodic Protection Project M-Rae Engineering, Inc. Paul Mochel (Valley CM)$537,560 $552,060 $0 $0 $0 0.0%$0 0.0%$0 0.0%$537,560 -2.6%0.0%April 2023 P2612/P2616 Paso de Luz/Telegraph Canyon and Vista Grande/Vista Sierra Water Line Replacements CCL Contracting, Inc. Paul Mochel (Valley CM)$1,573,540 $1,627,440 $0 $0 $0 0.0%$0 0.0%$0 0.0%$1,573,540 -3.3%2.1%May 2023 TOTALS:$4,084,792 $4,285,192 $38,369 $ (12,278)$0 -0.3%($12,278)-0.3%$26,091 0.6%$4,179,470 -2.5% **THIS CHANGE ORDER RATE INCLUDES THE CREDIT FOR UNUSED ALLOWANCES NET CHANGE ORDERS FY 2022* *NET CHANGE ORDERS DO NOT INCLUDE ALLOWANCE ITEM CREDITS. IT'S A TRUE CHANGE ORDER PERCENTAGE FOR THE PROJECT CONSTRUCTIO N MANAGER % CHANGE ORDERS W/ ALLOWANCE CREDIT** % COMPLETE EST. COMP. DATE NET CHANGE ORDERS LTD* FY 2023 CIP CONSTRUCTION PROJECTS as of December 31, 2022 CURRENT CONTRACT AMOUNT CIP NO.PROJECT TITLE CONTRACTOR BASE BID AMOUNT CONTRACT AMOUNT W/ ALLOWANCES Consultant Contract Status 10 Consultant Contract Status 11 Consultant Contract Status 12 Consultant Contract Status 13 QUESTIONS? 14 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 1, 2023 PROJECT: Various DIV. NO.ALL SUBMITTED BY: Michael Kerr, Information Technology Manager APPROVED BY: Adolfo Segura, Chief of Administrative Services Jose Martinez, General Manager SUBJECT: FY23 MID-YEAR REPORT OF THE DISTRICT’S FY23-26 STRATEGIC PLAN GENERAL MANAGER’S RECOMMENDATION: No recommendation. This is an informational item only. COMMITTEE ACTION: Please see “Attachment A”. PURPOSE: To provide a mid-year report of the District’s FY23-26 Strategic Plan for FY23. ANALYSIS: Summary The current Otay Water District Strategic Plan is a four-year plan ranging from the start of FY23 through the end of FY26. This report details the mid-year results for the first year of our four-year program. Objectives – Target 90% Strategic Plan objectives are designed to ensure the District is executing defined mission-developed strategies and implementing appropriate changes necessary to guide the agency, meet new challenges, and positively adapt to change. FY23 mid-year results are above target at 100%, with 18 of 18 active items completed or on schedule. Agenda Item 9b Key Performance Indicators (KPI’s) – Target 75% KPI’s are designed to track the District’s day-to-day performance. These indicators measure the effectiveness and efficiency of essential operational services. The District’s overall KPI goal of 75% is considered “on target”. For FY23, mid-year results are above target at 80%, with 20 of 25 items achieving the desired level or better. 0 5 10 15 20 25 30 35 40 45 18 0 0 17 On Schedule/Completed Behind On Hold Not Started 0 5 10 15 20 25 30 35 40 20 5 On Target Not on Target 18 of 18 Objectives are Completed or On Schedule (100%) 20 of 25 Key Performance Indicators are On Target (80%) KPI’s Not on Target (5): Sewer Overflow Rate (AWWA) Target & AWWA: Zero (0) overflows per quarter and annually. A Category 3 Sanitary Sewer Overflow (SSO) event occurred in quarter one, on July 22, 2022. This was due to a root blockage at manhole MH- 354-061 located on Anaheim Drive, La Mesa. A total of 10 gallons spilled and were fully recovered. Hydrant Maintenance Program Target: 20% of District fire hydrants maintained to accomplish 100% every five years (1,220 fire hydrants annually). Utility Maintenance staff performed maintenance on 370 fire hydrants vs. the year-to-date target of 610 fire hydrants. Staff focused on critical valve exercising in quarter one and was short staffed in quarter two. It is anticipated that the annual target will be met by the end of FY23. Mark-out Accuracy Target: 100% mark-out accuracy annually 1,327 mark-outs were completed in quarter two with one hit facility. The District’s contract locator incorrectly marked a 2” water service lateral that was subsequently damaged by an excavator. Employee Turnover Rate Target: Less than 5% turnover annually. A total of 4 voluntary terminations occurred in quarters one and two, resulting in a 2.86% turnover. Training Hours per Employee (AWWA) Target: 15.6 hours of training per employee annually. 7.64 training hours have been completed vs. the year-to-date target of 7.8 hours. Due to vacancies, collectively, the target was missed by less than an hour. KPI’s are based on established AWWA performance benchmarks, water agency standards, and historical trends. Ten (10) measures are reported annually: • Water Rate Ranking • Sewer Rate Ranking • Water Debt Coverage • Sewer Debt Coverage • Reserve Level • Accounts Per Full-Time Employee (FTE) • Business Recovery Exercises • Vulnerability Assessments • Potable Tank Inspection and Cleaning • Injury Incident Rate One (1) measure is reported biennially to triennially: • Customer Opinion Survey Next Steps Staff will continue to focus on the plan’s objectives, key performance indicators, and emerging trends. Committee Reports – Slideshow The Strategic Plan mid-year results are presented to both the Engineering, Operations, and Water Resources Committee, and the Finance, Administration, and Communications Committee, with a specific focus on the most relevant information for each Committee (see “Attachment B”). The Strategic Plan is also available on the District’s website. FISCAL IMPACT: Joe Beachem, Chief Financial Officer Informational item only; no fiscal impact. STRATEGIC GOAL: Strategic Plan and Performance Measure reporting is a critical element in providing performance reporting to the Board and staff. LEGAL IMPACT: None. ATTACHMENTS: Attachment A – Committee Action Report Attachment B – PowerPoint Presentation ATTACHMENT A SUBJECT/PROJECT: FY23 MID-YEAR REPORT OF THE DISTRICT’S FY23-26 STRATEGIC PLAN COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee and the Finance, Administration, and Communications Committee, met on February 14 and 15, 2023, respectively, and the following comments were made: • The Committee inquired whether the District had an innovation program where employees could submit ideas and receive incentives. General Manager Martinez responded that employees submit suggestions and are recognized via the District’s Kudos program. The Committee further inquired whether anything relevant to recognition and feedback was included in the performance reviews, to which staff responded that there is a current objective in the FY23-26 Strategic Plan implementing a committee to advance the District’s culture and are considering formalizing and adopting best practices. • Regarding the Water Rate Ranking KPI, staff indicated that the District had moved closer to the mid-point; that next quarter, the new rates would go into effect, and we’ll still meet the target. The Committee asked if this would depend on whether other member agencies are making their rate increases. Staff responded that based on our knowledge of their rate increases, we would be right near the middle. • Staff noted that the District is aging and maintenance costs are going up, and we will continue to see price pressure. The Committee also added that inflation and supply chain issues were already here. • The Committee asked if the Strat Plan was an outward-facing document accessible by the public, to which staff responded that it was. The Committee further inquired if we ever received calls from the public regarding the Strat Plan, and staff responded that we do not. The Committee also asked if the Strat Plan was referenced in the newsletter and staff responded that we do not, as there is so much limited real estate space. Staff also noted that customers are much more interested in rebates and services. • The Committee asked if we could track or see the number of times the public clicked on the Strat Plan link. Staff responded that we could do this via analytics. • The Committee inquired about the District’s cash reserve policy and the reserve level and expressed interest in observing as the District moves through its budget process. Staff indicated that the debt coverage was related to the reserves and to what level the District targets its reserves. Staff further indicated that a consultant who helped set the District’s reserve levels was hired years ago. That this is something that comes up as we issue debt, which rating agencies evaluate. • The Committee inquired if the District needed a deeper reserve due to the economic environment. Staff indicated that our rate increases, while they sound dramatic, are not and that the District’s rate increases are relatively low even in this environment. The Committee expressed appreciation for staff’s work in minimizing rate increase to ratepayers. Staff further noted that reserve levels (inflationary impact) are more dynamic than static. • Upon completion of the discussion, the Committee supported staffs’ recommendation and presentation to the full board as an informational item. OTAY WATER DISTRICT STRATEGIC PLAN FY2023 Mid-Year Report 2023 2026 ATTACHMENT B BALANCED SCORECARD 2 Focuses on the financial performance of the District FINANCIAL Focuses on the District’s culture and development of staff to ensure there is a productive and skilled workforce in place LEARNING AND GROWTH Focuses on customer service levels, satisfaction, brand, and confidence CUSTOMER Focuses on business processes designed to deliver and improve customer objectives and services INTERNAL BUSINESS PROCESS 90% Total 35 ON SCHEDULE COMPLETED BEHIND SCHEDULE ON HOLD OBJECTIVES TR E N D S MID-YEAR FY 2023 18 Objectives 18/18 = 100% Overall Target 94% 88% 93%95%94% 82%86% 98% 50% 60% 70% 80% 90% 100% FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Year-End Target 3 Active 18 Not Started 17 Enhance and build public awareness of the District’s priorities, initiatives, programs, and services Collect and analyze customer feedback on District operations, projects, programs, service experience, and expectations Advance the District's web and social media presence Enhance internal communications, tools, and technology to disseminate information to District staff effectively Enhance education, outreach, and communication tools to the public on the understanding of water supply constraints and rates and how they affect/support a reliable water supply 4 CUSTOMER On Schedule Not Started Maintain a long-range financing plan that sets forth the long-term funding needs of the District Evaluate grant funding opportunities Evaluate banking functions for lower cost and process efficiencies Evaluate the District’s cash reserve policies to consider optimal uses and levels of reserves, to ensure financial resiliency Conduct an evaluation of a health savings investment account program for an optional post-employment benefit Conduct a compensation study to evaluate labor industry conditions and the District’s competitiveness Invest in technology infrastructure to enhance customer engagement and satisfaction Deploy Advanced Metering Infrastructure (AMI) technology in service areas to improve the District operations Evaluate Interactive Voice Response (IVR)/Online customer portal for water use management and assistance 5 Deanna Vaughn Accountant FINANCIAL Completed On Schedule Not Started Leverage the use of renewable and clean energy resources and reduce the use of hazardous chemicals Evaluate and implement energy-efficient systems Evaluate and implement alternative energy opportunities Advance Clean Fleet Regulations District Implementation Program of Zero or near Zero Emissions Vehicles Reduce the District’s chemical footprint by substituting hazardous chemicals for similar, less hazardous chemicals Implement technologies to improve response time, security, and operational effectiveness Conversion of the District’s enterprise Geographic Information System (GIS/Esri) from a Geometric Network to a Utility Network Model Conduct needs assessment/replacement of District's financial management system Maintain and regularly evaluate internal financial controls Leverage Cityworks to further develop job task process standardization and work order cost modeling Develop appropriate water resource mix to meet the water reliability needs of the community Use the Water Facilities Water Management Plan/Urban Water Management Plan to analyze future needs and prescribe approaches to meeting future requirements Evaluate City of San Diego’s recycled water purchase Develop the District’s long-term water supply strategies and planning efforts with regional partnerships 6 INTERNAL BUSINESS PROCESS On Schedule Not Started Don Bienvenue Sr. Engineering Technician Respond to anticipated water shortages through rate structure modification, conservation assistance, and outreach Monitor and modify the Water Shortage Contingency Plan, as needed Identify, evaluate, and implement new opportunities for recycled water, including potential for potable reuse Advancement of District's Asset Management Program Formalization of Standard Operating Procedures (SOP) and Planned Job Observations (PJO) Develop long-term strategic operations and maintenance program (Total Asset Management) Collect and maintain accurate asset records, including criticality, maintenance history, asset condition, and performance for continuous improvement Cloud migration of the District’s enterprise Geographic Information System (GIS/Esri) and the associated Asset Management and Field Applications Cyber and Physical Security Advance the use of the District's Supervisory Control and Data Acquisition (SCADA) system to further enhance the security and reliability of the distribution system and optimize administration Evaluate new disaster recovery solutions and advance the District's enterprise business continuity program 7On Schedule Not Started Kyle Hernon Meter Maintenance Worker II INTERNAL BUSINESS PROCESS Coordinate workforce planning activities to determine future needs, identify gaps, and implement actions to close the gaps Maximize opportunities to develop employees through training and mentoring Evaluate the implementation of learning and development programs in coordination with partner agencies Analyze and identify workforce trends to address critical gaps between the current workforce and future needs Improve Organization Effectiveness Negotiate successor Memorandum of Understanding (MOU) with the employee association and unrepresented employees to focus on recruitment and retention Implement a cross-functional innovation committee to advance the District’s culture of collaboration and process improvement among departments 8Emilyn Zuniga Safety & Security Specialist LEARNING AND GROWTH Not Started KEY PERFORMANCE INDICATORS TR E N D S MID-YEAR FY 2023 Overall Target 75% Total 34 Reported Quarterly 23 Reported Annually 10 83% 90%88% 95% 83% 90%90%88% 50% 60% 70% 80% 90% 100% FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Year-End Target 20 KPIs 20/25 = 80% ON TARGET NOT ON TARGET 5 KPIs 5/25 = 20% Reported Biennial to Triennial 1 10 Phil Kussler Water Systems Operator II 1.49 0.96 0123456789101112131415161718192021222324252627 Q1 Q2 Q3 Q4 Result Target 75th Percentile Median 25th Percentile TECHNICAL QUALITY COMPLAINT (AWWA | Customer Relations) TARGET No more than 4.6 complaints per 1,000 customer accounts annually CALCULATION Number of technical quality complaints per year/Number of active accounts per reporting period AWWA BENCHMARK Average of 75th Percentile, 2.6, and Median, 6.6, for population served between 100,001 – 500,000 (Combined Utilities) POTABLE WATER COMPLIANCE RATE (AWWA | Water Operations) TARGET 100% of all health-related drinking water standards per quarter and annually CALCULATION Number of days the primary health regulations are met/Number of days in the reporting period AWWA BENCHMARK 100% -75th Percentile for population served between 100,001 –500,000 (Water)11 100% (FY 23 Q1 & Q2 Result) Mitch Plum Laboratory Analyst 98.63%98.78% 95% 96% 97% 98% 99% 100% Q1 Q2 Q3 Q4 Result Target ANSWER RATE TARGET 97% average answer rate per quarter and annually CALCULATION Number of calls answered/Total number of calls 12 Eugenio Andreu Jr. Customer Service Rep II 99.99%99.99% 95% 96% 97% 98% 99% 100% 101% Q1 Q2 Q3 Q4 Result Target BILLING ACCURACY TARGET 99.8% billing accuracy per quarter and annually CALCULATION Number of correct bills/Number of bills issued during the reporting period -0.3%-0.3% -5% -3% -1% 1% 3% 5% 7% Q1 Q2 Q3 Q4 Result Target CONSTRUCTION CHANGE ORDER INCIDENCE TARGET No more than 5% per quarter and annually CALCULATION Cost of Change Orders (not including allowances)/Original construction contract amount (not including allowances)13 12% 40% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Q1 Q2 Q3 Q4 Result Target CIP PROJECT EXPENDITURES VS. BUDGET TARGET 95% of budget annually CALCULATION Actual Expenditures/Annual Budget 5 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 Q1 Result Target SEWER RATE RANKING 5 0 2 4 6 8 10 12 14 16 18 20 22 Q1 Result Target WATER RATE RANKING TARGET Bottom 50th percentile for the 22 member agencies in San Diego CALCULATION Ranking for the average monthly water bill among CWA member agencies TARGET Bottom 50th percentile for the 28 sewer service providers in San Diego CALCULATION Ranking for the average monthly bill among sewer service providers in San Diego County 14 3.3% 3.6% 0% 1% 2% 3% 4% 5% 6% 7% Q1 Q2 Q3 Q4 Result Target DISTRIBUTION SYSTEM LOSS TARGET Less than 5% of unaccounted water annually CALCULATION Volume purchased from CWA, City of San Diego customers + volume used by District/Volume purchased from CWA, City of San Diego, and RWCTP production 15 80% 76% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% Q1 Q2 Q3 Q4 Result Target PLANNED POTABLE WATER MAINTENANCE RATIO IN $ TARGET 70% of all labor costs spent on preventative maintenance per quarter and annually CALCULATION Total Planned Maintenance Cost/Total Maintenance Cost 93% 75% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% Q1 Q2 Q3 Q4 Result Target PLANNED RECYCLED WATER MAINTENANCE RATIO IN $ TARGET 70% of all labor costs spent on preventative maintenance per quarter and annually CALCULATION Total Planned Maintenance Cost/Total Maintenance Cost 16 98%97% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% Q1 Q2 Q3 Q4 Result Target PLANNED WASTEWATER MAINTENANCE RATIO IN $ TARGET 80% of all labor costs spent on preventative maintenance per quarter and annually CALCULATION Total Planned Maintenance Cost/Total Maintenance Cost $805.95 $787.42 $500 $700 $900 $1,100 $1,300 $1,500 $1,700 $1,900 Q1 Q2 Q3 Q4 Result Target DIRECT COST OF TREATMENT PER MGD TARGET No more than $1315 per MGD spent on wastewater treatment annually CALCULATION Total O&M costs directly attributable to sewer treatment/Total volume in MG for one quarter 17 Rob Leigh Lead Reclamation Plant Operator 18Marco Ramirez Sr. Utility Worker/Equipment Operator 1.14 00 1 2 3 4 5 6 7 8 9 10 Q1 Q2 Q3 Q4 Result Target 75th Percentile Median 25th Percentile SEWER OVERFLOW RATE TARGET 0 overflows annually CALCULATION 100 (Number of sewer overflows during the reporting period)/Total miles of pipe in the sewage collection system AWWA BENCHMARK 0 –75th Percentile for population served between 0-50,000 AWWA –Wastewater Operations) 26% 32% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q1 Q2 Q3 Q4 Result Target EASEMENT EVALUATION AND FIELD INSPECTION TARGET 100% assigned easements, evaluated via desktop tools, and inspected annually (100 easements are assigned for FY23) CALCULATION Number of easements evaluated and inspected/Total easements assigned for the period 19 1117 1081 0 200 400 600 800 1000 1200 1400 1600 1800 2000 Q1 Q2 Q3 Q4 Result Target SYSTEM VALVE EXERCISING PROGRAM TARGET 20% of District valves exercised annually to accomplish 100% every five years (4092 valves annually) CALCULATION Total number of valves exercised per year 0 0.130 2 4 6 8 10 12 14 16 18 20 Q1 Q2 Q3 Q4 Result Target 75th Percentile Median 25th Percentile POTABLE WATER DISTRIBUTION SYSTEM INTEGRITY (LEAKS) (AWWA –Water Operations) TARGET No more than 2.5 leaks per 100 miles of distribution piping annually CALCULATION 100 (Number of leaks)/Total miles of distribution piping AWWA BENCHMARK 2.5 –75th percentile for population served between 100,001-500,000 20 0.14 0.270 2 4 6 8 10 12 14 16 Q1 Q2 Q3 Q4 Result Target 75th Percentile Median 25th Percentile POTABLE WATER DISTRIBUTION SYSTEM INTEGRITY (BREAKS) (AWWA –Water Operations) TARGET No more than 3 breaks per 100 miles of distribution piping annually CALCULATION 100 (Number of breaks)/Total miles of distribution piping AWWA BENCHMARK 3 –75th percentile for population served between 100,001-500,000 0 00 0.5 1 1.5 2 2.5 3 Q1 Q2 Q3 Q4 Result Target RECYCLED WATER SYSTEM INTEGRITY (LEAKS) TARGET No more than 2.5 leaks per 100 miles of recycled distribution system annually CALCULATION 100 (Number of leaks)/Total miles of recycled distribution system 21 0 00 0.5 1 1.5 2 2.5 3 Q1 Q2 Q3 Q4 Result Target RECYCLED WATER SYSTEM INTEGRITY (BREAKS) TARGET No more than 3 breaks per 100 miles of recycled distribution system annually CALCULATION 100 (Number of breaks)/Total miles of recycled distribution system 243 127 100 150 200 250 300 350 Q1 Q2 Q3 Q4 Result Target HYDRANT MAINTENANCE PROGRAM TARGET 20% of District fire hydrants maintained annually to accomplish 100% every 5 years (1220 fire hydrants annually) CALCULATION Total number of fire hydrants maintained 22 100% 99% 95% 96% 97% 98% 99% 100% 101% Q1 Q2 Q3 Q4 Result Target MARK-OUT ACCURACY TARGET 100% mark-out accuracy per quarter and annually CALCULATION Number of mark-outs performed without an at-fault hit, which is damage to a District facility that results from a missing or erroneous mark-out/Total number of mark-outs 1.42%1.44% 0% 1% 2% 3% 4% 5% Q1 Q2 Q3 Q4 Result Target EMPLOYEE VOLUNTARY TURNOVER RATE TARGET Less than 5% turnover annually CALCULATION Number of voluntary terminations (not including retirements)/Average number of employees 23Vu Tran Permit Technician 23 4.05 3.61 0 5 10 15 20 25 30 35 40 Q1 Q2 Q3 Q4 Result Target 75th Percentile Median 25th Percentile TRAINING HOURS PER EMPLOYEE (AWWA –Organizational Development) 8.83 12.55 0 10 20 30 40 50 60 70 80 90 100 Q1 Q2 Q3 Q4 Result Target SAFETY TRAINING PROGRAM TARGET 24 hours per field employee annually CALCULATION Total qualified safety training hours for field employees/Average number of field employees 24 TARGET 15.6 hours per employee annually CALCULATION Total qualified training hours for all employees/Average number of FTEs AWWA BENCHMARK 15.6 –Median for combined utilities https://otaywater.gov/about-otay/news-and-documents/strategic-plan/ QUESTIONS? FY23 –FY26 Strategic Plan STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 1, 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: •Esri Lead Service Line Solution – Staff configured Esri’s Lead Service Line Solution package (five applications: four web-based and one mobile) and deployed to Operations and Engineering staff. The solution not only offers a number of benefits for District staff such as easily collecting and managing data on service lines, but it reduces the time and effort required to complete inventory tasks. It also provides an application for residents to report and communicate lead-related issues with District staff directly. This package will help prioritize infrastructure improvements and ensure regulation compliance with EPA. Human Resources: •New Hires/Recruitments - The District recently filled the following positions. o Recycled Water Specialist (1st vacancy) The District is or will be recruiting for the following positions: o Pump Mechanic I/II o Reclamation Plant Operator I/II/III o Recycled Water Specialist (2nd vacancy) Agenda Item 10 2 o Electrician I/II o HR is working on several job description updates in preparation for upcoming recruitments. IT Operations: • SCADA Upgrade Project - Beginning this week, staff will start testing the new version of the GE iFix SCADA software. This phase includes configuration testing on the latest versions to interpret data from field devices or PLCs to load up the system and check data logging, reporting, trending, etc. The following testing phase includes spot-checking of typical operational activities to ensure the application meets District parameters. The testing is scheduled to be completed in March. Purchasing & Facilities: • Administration Landscape Update Project Schedule – Merino Landscape Inc., the Landscape Architect (WYAC), and Facilities staff held a kick-off meeting on February 7 to coordinate efforts, identify laydown areas, prioritize customer access, review installation schedules, and establish equipment and plant submittal approval process. The construction period begins February 21 and runs through May 26; upon project acceptance by WYAC and staff, a 90-day maintenance period begins. Safety & Security: • Meetings and Site Visits: o County of San Diego Business Sector Telebriefings – Staff attended the county's monthly meetings for COVID-19 business updates and asked questions regarding current public health orders. o LCW Consortium Services Overview – LCW met with staff to provide an overview of the consortium services, including telephone 3 consultations, employment relations consortium workshops, and a database of HR correspondence and program templates. • COVID – Staff continues to provide support to HR with District COVID case management and review of the District's business continuity plan. • Safety, Health, and Emergency Management Training: o New Employee Safety Training – Staff coordinated Fall Protection User, Confined Space Entry, First Aid/CPR/AED, and Trench/Shoring Competent User safety training for four new Utility Maintenance employees. o Standard Operating Procedures (SOP) - Staff conducted its first SOP training session. The training consisted of a lecture, a demonstration, and a practical exercise. The training was well received. • Security and Emergency Management: o County of San Diego Full Scale Exercise – On February 2nd, the County conducted its full-scale exercise. Staff logged into the County's Web EOC and monitored the events from a situational awareness standpoint. Staff is currently reviewing and updating four specific hazard response plans: Water Contamination, Storms and Floods, Earthquakes, and Long-Term Power Outage. • Audits and Inspections o ACWA JPIA Excess Carrier Insurance Site Visits – Via JPIA ACWA, FM Global was contracted to perform a loss control and prevention site visit to evaluate the District’s excess carrier insurance program. The loss prevention and control inspection were conducted at the District’s Administration Building, Operations Building, Regulatory Site, and Treatment Plant. The periodic site inspection consisted of walking through the facilities and buildings, checking sprinkler systems, Warehouse storage area, overview of Treatment Plant operations, evaluation of potential brushfire and flood exposures, and checking for the presence of gas-fired equipment. FM Global will share the findings and recommendations with ACWA JPIA and then forward them to the District. UFINANCE: • California Society of Municipal Finance Officers (CSMFO) Operating Budget Award – The District received the CSMFO’s Operating Budget 4 Excellence Award for the FY 2023 Operating Budget document. This is the 17th consecutive year the District has received the CSMFO award. • CSMFO Capital Budget Award – The District received CSMFO’s Capital Budget Excellence Award for its FY 2023 Capital Budget document. This is the 18th consecutive year the District has received the CSMFO award. • FY 2024 Budget – Staff is continuing efforts to prepare the FY 2024 proposed budget. The Economic Outlook presentation from London Moeder is scheduled to be presented at the April Board Meeting. The FY 2024 Budget Workshop will be scheduled at the end of April or in early May in preparation for the final Budget presentation at the June Board meeting. • US Bank Acquisition of MUFG Union Bank – Staff is preparing for the change over to US Bank by completing on-line trainings and becoming familiar with US Bank’s process. Finance and IT are met with the US Bank Technical Team on February 1 to discuss file layouts for processing Utility Bill Payments and Payroll. • January 2023 Rate Increase - The 2023 rate changes went into effect with bills mailed in January. As of February 14, 30 customers have called to inquire about the rate changes. Of those calls, 20 customers called because their bills are higher, three called because of an increase in their sewer bill, two called because of lower bills, and five called for a more in-depth explanation of the changes. Customer Service continues to track customer communication regarding the new rates. • Low Income Household Water Assistance Program (LIHWAP) – Otay began receiving payments for customers in mid-October 2022. Since February 14, 98 customer accounts have been credited a total of $68,031.56. The program will continue to run through August 2023 and it allows eligible customers to receive up to $2,000 in assistance for their water bills. Financial Reporting: • The financial reporting for January 31, 2023 is as follows: o For the seventh month ending January 31, 2023, there are total revenues of $71,327,334 and total expenses of $68,526,588. The revenues exceeded expenses by $2,800,746. 5 • The financial reporting for investments for January 31, 2023 is as follows: o The market value shown in the Portfolio Summary and in the Investment Portfolio Details as of January 31, 2023 total $106,097,347 with an average yield to maturity of 3.192%. The total earnings year to date are $1,217,204. 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. 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- 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 and reviewed in February 2023. The project is within budget and on schedule. (R2117 and R2157) 6 • 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 for procuring materials. 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. 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 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 7 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 project completion date is anticipated by April 14, 2023. The contractor, M-Rae commenced field work February 2023. 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 is processing submittals and procuring materials. 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 has begun the structural upgrades on the 1004-2 tank. The project is within budget. (P2567 & P2614) • 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 had to reduce production in January 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. 8 • Summary of Budgeted and Sold Meters and EDUs for Fiscal Year 2023 up through January 30, 2023: UWater System Operations: • On Tuesday, January 24th, a high voltage alarm from the Tijuana connection was received. The batteries at this facility were recently changed and caused the voltage efficiency to increase. SCADA staff made necessary adjustments to address this failure. • On January 25th, 26th, 31st and February 1st, process instrument calibrations were performed at the 640-1/2 Reservoirs. Instrument calibrations are a form of preventative maintenance performed to ensure proper field control of associated water systems and accurate reporting of process data and to assist in mitigating unplanned downtime from unexpected equipment failures. This type of preventive maintenance is scheduled every 12 months. Date Meters (Budgeted) Meters Sold (Actual) EDUs (Budgeted) EDUs Sold (Actual) Total $ (Budgeted) Total $ Collected (Actual) January 2023 25.7 4 66.9 6.5 $206,750 $82, 687 Totals FY 2023 179.7 85 468.1 218 $1,447,250 $3,029,256 9 • On Wednesday, January 25th, staff performed a planned shutdown to replace a one-inch service meter lateral on Campo Road in Jamul. The service lateral was identified to be leaking by a customer and verified by staff. The shutdown lasted seven hours and affected 11 meters with four water trailers available for those affected. • On Friday, January 27th, SCADA staff assisted Fleet staff to repair a failure in the genset at the Administrative Building. A damaged battery was detected and replaced by Fleet staff, resolving the issue. • On Saturday, January 28th, Pump Mechanics repaired an oil leak in a motor-operated valve (MOV) at 980-2 Pump Station on equipment #1. An O-ring was replaced to fix the problem. • The following events occurred on Monday, January 30th: o The District’s Lab received the Assessment Report which is the next step in the State of California’s Environmental Laboratory Accreditation Program transition to their new standard. Lab staff will now submit a Corrective Action Plan (CAP) that will explain what will be done to correct the findings from the Assessment Report. The District’s laboratory continues to remain in full compliance during the State’s transition and its accreditation remains in effect through October 2023. o The District has migrated to a new database tracking platform for all of the Treatment Plant’s data collection on wastewater laboratory analysis, equipment inspections, flow meter readings, etc. The old platform was Hach Claros and the new platform is Aquatic Informatics Rio. Hach Claros has been decommissioned by Hach. • The following events occurred on Tuesday, January 31st: o Staff assisted the Inspection section with a final walk-through on Heritage Road up to Main Street in Chula Vista, as part of the Otay Ranch Village 3 development. The purpose of a final walk-through is to ensure all water appurtenances are operable and up to Water Agency Standards (WAS), before the District accepts the project and the warranty period begins. o Pump Mechanic and Electrical staff replaced a failed pump at the Russell Lift Station since the pump was operating with low pressure. 10 • The following events occurred on Wednesday, February 1st: o The Treatment Plant was placed on bypass mode while no discharge of recycled water occurred from February 1st through February 6th. The recent rain events greatly reduced recycled water demands in the recycled distribution system. o Staff performed a planned shutdown to replace a four-inch master meter isolation valve on Eastlake Parkway in Chula Vista. This shutdown was required to replace a non-operable master recycled water meter. The master meter isolation valve had excessive leak by, requiring a system shutdown to change out the meter. The shutdown lasted approximately four hours and affected five recycled irrigation meters. • On Thursday, February 2nd, staff assisted the Inspection section with bacteriological test samples for three new developments. Staff loaded, flushed, and sampled three new sections of the main. Two were located on Magdalena Avenue and Main Street and the other on La Media and Avenida Capri in the Otay Ranch Village 8 development. • The following events occurred on Friday, February 3rd: o Pump Mechanics worked with vendor HMT to perform surge tank cleaning and inspection at 944 Recycled Pump Station. The District is currently waiting on the inspection report. Regular inspections are critical to the maintenance process for pressure vessels. This can identify potential problems before they develop further. o Staff isolated the 680 Recycled Pump Station surge tank to perform an internal tank inspection and cleaning. Inspection and cleaning are performed every five years as part of proactive maintenance. No issues were noted during the inspection. o Staff performed a mock shutdown on Jefferson Road and Olive Vista in Jamul to identify main isolation valve conditions for an upcoming shutdown. This shutdown is needed to make repairs on the 14-inch steel main leak on Jefferson Road. The cause of the leak was due to corrosion. Staff determined the isolation valves have workable leak by for the upcoming shutdown. • On Monday, February 6th and Tuesday, February 7th, Electricians coordinated a free electrical infrared testing at 16 facilities with the Association of California Water Agencies Joint Powers Insurance Authority (ACWA JPIA). Electrical infrared inspections can assist with locating problems before they lead to an unscheduled outage, equipment damage or fire. An infrared inspection or survey can improve the operating, testing, and 11 maintenance costs by quickly pinpointing electrical system problems, reducing downtime and electrical equipment damage, preventing catastrophic and costly system failures, allowing the District to prioritize repairs, and improving preventive maintenance efficiency. This can be tested under load to avoid costly system shutdowns. Only one minor problem was identified in a low voltage cable at the 944 Pump Station motor control center #4. This issue was repaired during the inspection. • On Monday, February 6th, staff performed a mock shutdown on Vista Cielo, off of Steele Canyon Road, in Jamul. This mock shutdown was needed to identify main isolation valve conditions for an upcoming valve replacement shutdown. Staff determined the isolation valves have workable leak by for upcoming shutdown to replace the valves that have excessive leak by. During routine valve exercising, some valves in this area were identified with excessive leak by. • The following events occurred on Wednesday, February 8th: o Electricians and SCADA staff assisted Fleet staff to conduct a genset test at 832-1 Pump Station. The test was successfully completed. o Staff throttled the 12-inch main at the end Piper Ranch Road in the Otay Mesa area, to allow Utility Maintenance staff to perform a “size on size” wet tap. A “size on size” wet tap is to tap to the main is the same size as the main. When performing “size on size” wet taps, the main being tapped is throttled for safety purposes. • On Friday, February 10th, staff assisted the Inspection section with a bacteriological test sample for a new development off Avenida Bosque and Pointe Parkway in Spring Valley. Staff loaded, flushed, and sampled a new T section of main to be tied into the District’s distribution system for a new housing development. • On Saturday, February 11th, staff performed a planned shutdown to replace a leaking six-inch fire hydrant valve on Via Orange Way in Spring Valley. Staff excavated to expose the leaking six-inch valve and discovered that the bonnet bolts had rusted off, thus causing the leak. Once the main line was shut down, staff removed the old valve and installed a new six-inch valve with a six-inch Romac FCA to adapt to the existing pipe. The support pad was poured and backfilled the excavation. The shutdown lasted eight hours and affected 22 meters with two water trailers available for those affected. Staff placed a temporary asphalt on the hole and will need to return to re-pour the concrete driveway in four to six weeks. 12 UPurchase and Change OrdersU: • The following table summarizes purchases and change orders issued during the period from January 18, 2023 through February 13, 2023 that were within staff signatory authority: Date Action Amount Project Contractor/ Consultant/Vendor 1/18/2023 P.O. $50,809.36 FY2023 QTR 2 WORKERS' COMP PROGRAM ACWA JPIA 1/19/2023 P.O. $1,871.78 HP WORKSTATION GHA TECHNOLOGIES, INC. 1/20/2023 P.O. $4,650.00 OPERATIONS POWER CIRCUITS OT ELECTRICAL 1/20/2023 P.O. $15,000.00 STRAT PLAN CUSTOM SOFTWARE APPLICATION ROOIBAARD GROUP, LLC 1/31/2023 P.O. $5,250.00 ANNUAL HARMONY MOBILE SOFTWARE SUPPORT MASTER METER, INC. 2/13/2023 P.O. $15,000.00 CY2023 DENTAL BENEFITS ADMIN FEE FOR CLAIMS BENEFITS COORDINATORS CORPORATION UWater Conservation and Sales: • Water Conservation – January 2023 usage was 13% lower than January 2013 usage. Since January 2022, customers have saved an average of 9% over 2013 levels. 13 • 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 since July 2021. January 2023 usage was 4% lower than January 2020. Since July 2021, customer usage decreased 2% compared to 2020 levels. • Potable Water Purchases – The January potable water purchases were 1,569 acre-feet which is 14.8% below the budget of 1,758 acre-feet. Year-to-date potable purchases are 16,992 acre-feet, which is 6.9% below the cumulative budget of 18,254 acre-feet. 14 • Recycled Water Purchases – The January recycled water purchases from the City of San Diego and production at the District’s treatment facility were 63 acre-feet which is 38.2% below the budget of 101 acre-feet. Year-to-date recycled purchases and production are 2,257 acre-feet, which is 9.2% below the cumulative budget of 2,485 acre-feet. • Rainfall for the month of January and year to date can be seen in the table below. Rainfall January Y-T-D Actual 5.17 11.14 Historical Average 0.81 4.87 Variance 4.36 (538.3%) 6.27 (128.7%) UPotable, Recycled, and Sewer (Reporting up to the month of January): • Total number of potable water meters: 51,599. • Total number of sewer connections: 4,740. • Recycled water consumption for the month of January: o Total consumption: 72.92 acre-feet or 23,759,472 gallons. o Average daily consumption: 760,000 gallons per day. 15 o Total cumulative recycled water consumption since January 1, 2022: 2,444.2 acre-feet. o Total number of recycled water meters: 775. • Wastewater flows for the month of January: o Total basin flow: 1,798,000 gallons per day. ▪ This is an increase of 11 percent from January 2022. o Spring Valley Sanitation District flows to Metro: 599,333 gallons per day. o Total Otay flow: 1,198,613 gallons per day. o Flow processed at the Ralph W. Chapman Water Recycling Facility: 670,387 gallons per day. o Flow to Metro from Otay Water District: 528,226 gallons per day. o By the end of January there were 6,752 wastewater EDUs. Exhibit A Annual YTD REVENUES: Budget Actual Budget Variance Var % Potable Water Sales 61,958,000$ 35,543,046$ 37,466,000$ (1,922,954)$ (5.1%) Recycled Water Sales 10,217,000 6,342,019 6,787,900 (445,881) (6.6%) Potable Energy Charges 2,721,000 1,643,286 1,724,900 (81,614) (4.7%) Potable System Charges 15,168,000 9,980,852 9,963,000 17,852 0.2% Potable MWD & CWA Fixed Charges 13,547,000 8,045,219 7,933,000 112,219 1.4% Potable Penalties and Other Fees 914,000 617,662 582,757 34,905 6.0% Total Water Sales 104,525,000 62,172,084 64,457,557 (2,285,473) (3.5%) Sewer Charges 3,284,000 1,865,263 1,858,977 6,286 0.3% Meter Fees 170,000 48,594 99,400 (50,806) (51.1%) Capacity Fee Revenues 2,311,000 1,472,513 1,348,200 124,313 9.2% Non-Operating Revenues 2,523,100 1,935,691 1,432,000 503,691 35.2% Tax Revenues 5,310,000 3,454,663 3,026,100 428,563 14.2% Interest 495,000 378,526 288,750 89,776 31.1% Total Revenues 118,618,100$ 71,327,334$ 72,510,984$ (1,183,650)$ (1.6%) EXPENSES: Potable Water Purchases 44,250,000$ 25,505,043$ 27,465,200$ 1,960,157$ 7.1% Recycled Water Purchases 5,487,000 3,865,819 3,865,819 - 0.0% CWA-Infrastructure Access Charge 2,998,000 1,803,406 1,787,000 (16,406) (0.9%) CWA-Customer Service Charge 1,881,000 1,094,281 1,091,000 (3,281) (0.3%) CWA-Reliability Charge 3,003,000 1,735,175 1,728,500 (6,675) (0.4%) CWA-Emergency Storage Charge 4,711,000 2,754,479 2,748,200 (6,279) (0.2%) MWD-Capacity Res Charge 762,000 474,781 478,500 3,719 0.8% MWD-Readiness to Serve Charge 685,000 357,908 386,200 28,292 7.3% Subtotal Water Purchases 63,777,000 37,590,892 39,550,419 1,959,527 5.0% Power Charges 3,893,000 2,565,423 2,502,900 (62,523) (2.5%) Payroll & Related Costs 22,649,100 12,256,423 13,155,800 899,377 6.8% Material & Maintenance 4,132,600 2,323,735 2,410,900 87,165 3.6% Administrative Expenses 7,602,700 3,849,723 4,438,784 589,061 13.3% Legal Fees 455,000 554,302 265,300 (289,002) (108.9%) Expansion Reserve 684,800 399,490 399,490 - 0.0% Replacement Reserve 8,393,600 4,896,500 4,896,500 - 0.0% OPEB Trust 2,080,900 1,213,800 1,213,800 - 0.0% General Fund Reserve 40,400 23,800 23,800 - 0.0% Rate Stabilization Reserve 19,000 - - - 0.0% Total Expenses 118,618,100$ 68,526,588$ 71,710,193$ 3,183,605$ 4.4% EXCESS REVENUES(EXPENSE) -$ 2,800,746$ 800,791$ 1,999,954$ OTAY WATER DISTRICT COMPARATIVE BUDGET SUMMARY FOR THE SEVEN MONTHS ENDED JANUARY 31, 2023 F:/MORPT/FS2023-P7 2/16/2023 3:43 PM The year-to-date actual net revenues through January show a positive variance of $2,800,746. COMPARATIVE BUDGET SUMMARY NET REVENUE AND EXPENSES FOR THE SEVEN MONTHS ENDED JANUARY 31, 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 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: March 01, 2023 SUBMITTED BY: Jose Martinez General Manager W.O./G.F. NO: DIV. NO. SUBJECT: General Manager’s Report ADMINISTRATIVE SERVICES AND FINANCE: Finance: The financial reporting for investments for January 31, 2023 is as follows:  The market value shown in the Portfolio Summary and in the Investment Portfolio Details as of January 31, 2023 total $106,097,347 with an average yield to maturity of 3.192%. The total earnings year to date are $1,217,204. $1,475,402 1.36% $49,199,190 45.44% $57,597,910 53.20% Otay Water District Investment Portfolio: 01/31/2023 Banks (Passbook/Checking/CD)Pools (LAIF & County)Agencies & Money Market Mutual Funds Total Cash and Investments: $108,272,502 (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 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 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 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 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 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 January 31, 2023 INVESTMENT OVERVIEW & MARKET STATUS: At the Federal Reserve Board's regular scheduled meeting on February 01, 2023, the Committee increased the target range for the federal funds rate from 4.25%-4.50% to 4.50% -4.75% and anticipates that ongoing increases in the target range will be appropriate. 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. 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 public health, labor market conditions, inflation pressures and inflation expectations, and financial and international developments." The District's effective rate of return for January 2023 was 3.00%, nine basis points higher than the previous month. LAIF's return was twenty-six basis points higher than the last month, reaching an average effective yield of 2.43% for January 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: January 31, 2023 Investment State Limit Otay Limit Otay Actual 8.01: Treasury Securities 100% 100% 0 8.02: Local Agency Investment Fund (Operations) $75 Million $75 Million $34.09 Million 8.03: Federal Agency Issues 100% 100% $57.32 Million 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% 0.26% 8.08: San Diego County Pool 100% 100% 13.95% 12.0: Maximum Single Financial Institution 100% 50% 1.36% Month End Portfolio Management January 31, 2023 Portfolio Summary % ofPortfolioBookValueInvestmentsMarketValueParValue Days toMaturityTerm YTM360 Equiv.YTM365 Equiv. Federal Agency Issues- Callable 27,593,242.11 64225.84 4.09451827,328,718.0027,600,000.00 4.151 Federal Agency Issues - Bullet 29,727,940.52 88327.84 3.16767429,031,660.4029,796,000.00 3.211 Money Market 276,727.38 10.26 1.9581276,727.38276,727.38 1.985 Local Agency Investment Fund (LAIF)34,094,360.63 131.92 2.392133,459,839.2834,094,360.63 2.425 San Diego County Pool 15,104,829.20 114.14 3.117114,525,000.0015,104,829.20 3.160 106,797,099.84 100.00%Investments 104,621,945.06106,871,917.21 412 322 3.149 3.192 Cash (not included in yield calculations)Passbook/Checking 1,475,402.22 1 0.71411,475,402.221,475,402.22 0.724 108,272,502.06Total Cash and Investments 106,097,347.28108,347,319.43 412 322 3.149 3.192 Current Year January 31 278,656.17 Fiscal Year To Date 1,217,203.64 Average Daily Balance Effective Rate of Return 109,220,830.93 105,664,137.71 1.96%3.00% 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 investmentsprovide 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_ME8: 02/18/2023 15:05 Reporting period 01/01/2023-01/31/2023 Run Date: 02/18/2023 - 15:05 PM (PRF_PM1) 7.3.0 Report Ver. 7.3.5 02/21/2023 YTM360 Page 1 Par Value Book Value MaturityDateStatedRateMarket Value January 31, 2023 Portfolio Details - Investments AverageBalanceIssuer Portfolio Management Month End Days toMaturityMoody'sCUSIPInvestment #PurchaseDate Federal Agency Issues- Callable 1.294Federal Home Loan Bank2395 2,000,000.00 1,993,242.11 07/26/20241.08002/03/2022 1,898,100.00 Aaa3130AQL68 541 1.973Federal Home Loan Bank2396 2,000,000.00 2,000,000.00 03/28/20242.00003/30/2022 1,938,220.00 Aaa3130ARE31 421 2.615Federal Home Loan Bank2398 2,000,000.00 2,000,000.00 02/16/20242.65005/16/2022 1,955,840.00 Aaa3130ARWD9 380 3.652Federal Home Loan Bank2401 3,000,000.00 3,000,000.00 06/13/20243.70009/13/2022 2,958,270.00 Aaa3130AT4S3 498 4.438Federal Home Loan Bank2403 3,000,000.00 3,000,000.00 10/28/20244.50011/03/2022 2,985,030.00 Aaa3130ATLK1 635 4.818Federal Home Loan Bank2412 5,000,000.00 5,000,000.00 10/27/20234.87501/27/2023 5,008,000.003130AUGF5 268 4.932Federal Home Loan Mortgage2406 3,000,000.00 3,000,000.00 04/25/20255.00010/25/2022 2,995,680.00 Aaa3134GX6A7 814 4.932Federal Home Loan Mortgage2407 1,600,000.00 1,600,000.00 11/08/20245.00011/08/2022 1,598,128.00 Aaa3134GX5C4 646 5.055Federal Home Loan Mortgage2408 3,000,000.00 3,000,000.00 11/22/20245.12511/28/2022 2,995,110.00 Aaa3134GY3P5 660 5.001Federal Home Loan Mortgage2409 3,000,000.00 3,000,000.00 05/23/20245.07011/23/2022 2,996,340.00 Aaa3134GY3Q3 477 27,593,242.1127,328,718.0027,600,000.0023,399,516.47Subtotal and Average 4.094 518 Federal Agency Issues - Bullet 2.855Federal Farm Credit Bank2397 2,000,000.00 1,993,837.74 04/25/20252.75004/26/2022 1,935,360.00 Aaa3133ENVC1 814 4.261Federal Farm Credit Bank2402 3,000,000.00 2,994,805.42 09/30/20254.25009/30/2022 3,015,060.00 Aaa3133ENP95 972 4.488Federal Farm Credit Bank2405 3,000,000.00 2,991,480.67 10/17/20244.37510/19/2022 2,993,310.00 Aaa3133ENS43 624 4.284Federal Farm Credit Bank2410 3,000,000.00 2,994,957.86 12/20/20244.25012/20/2022 2,991,120.00 Aaa3133EN4N7 688 3.361Federal Home Loan Bank2399 3,000,000.00 2,999,440.00 09/01/20233.37509/01/2022 2,968,140.00 Aaa3130AT5B9 212 3.449Federal Home Loan Bank2400 3,000,000.00 2,995,256.04 06/14/20243.37509/08/2022 2,950,800.00 Aaa3130AT4D6 499 4.338Federal Home Loan Bank2404 3,000,000.00 2,998,980.44 09/13/20244.37510/18/2022 2,996,010.00 Aaa3130ATND5 590 4.724Federal Home Loan Bank2411 2,000,000.00 1,999,311.85 12/15/20234.75012/20/2022 2,005,620.00 Aaa3130AUBA1 317 0.612Federal Home Loan Mortgage2391 1,045,000.00 1,038,296.69 09/23/20250.37509/16/2021 950,845.50 Aaa3137EAEX3 965 0.618Federal Home Loan Mortgage2392 2,751,000.00 2,732,989.03 09/23/20250.37509/22/2021 2,503,134.90 Aaa3137EAEX3 965 0.996Federal National Mortage Assoc2393 2,000,000.00 2,023,352.43 01/07/20251.62512/09/2021 1,903,280.00 Aaa3135G0X24 706 1.129Federal National Mortage Assoc2394 2,000,000.00 1,965,232.35 11/07/20250.50012/15/2021 1,818,980.00 Aaa3135G06G3 1,010 29,727,940.5229,031,660.4029,796,000.0029,726,847.44Subtotal and Average 3.167 674 Money Market 2.012Blackrock T - Fund Inst9010 8,317.79 8,317.79 2.0408,317.79RESERVE-10A WRB 1 2.012Blackrock T - Fund Inst9011 16,170.35 16,170.35 2.04016,170.35RESERVE 10 BABS 1 1.953FIRST AMERICAN US TREASURY9016 252,239.24 252,239.24 1.980252,239.24OWD TRUST & CUS 1 276,727.38276,727.38276,727.384,459,198.87Subtotal and Average 1.958 1 Portfolio OTAY NL! APData Updated: SET_ME8: 02/18/2023 15:05 Run Date: 02/18/2023 - 15:05 PM (PRF_PM2) 7.3.0 Report Ver. 7.3.5 YTM360 Page 2 Par Value Book Value MaturityDateStatedRateMarket Value January 31, 2023 Portfolio Details - Investments AverageBalanceIssuer Portfolio Management Month End Days toMaturityMoody'sCUSIPInvestment #PurchaseDate Local Agency Investment Fund (LAIF) 2.392STATE OF CALIFORNIA9001 34,094,360.63 34,094,360.63 2.42533,459,839.28LAIF 1 34,094,360.6333,459,839.2834,094,360.6331,963,790.35Subtotal and Average 2.392 1 San Diego County Pool 3.117San Diego County9007 15,104,829.20 15,104,829.20 3.16014,525,000.00SD COUNTY POOL 1 15,104,829.2014,525,000.0015,104,829.2017,333,039.68Subtotal and Average 3.117 1 109,220,830.93 106,871,917.21 3.149 322104,621,945.06 106,797,099.84Total and Average Portfolio OTAY NL! APData Updated: SET_ME8: 02/18/2023 15:05 Run Date: 02/18/2023 - 15:05 PM (PRF_PM2) 7.3.0 YTM360 Page 3 Par Value Book Value StatedRateMarket Value January 31, 2023 Portfolio Details - Cash AverageBalanceIssuer Portfolio Management Month End Days toMaturityMoody'sCUSIPInvestment #PurchaseDate 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 1,423,701.49 1,423,701.49 0.7501,423,701.49UNION OPERATING 1 0.000STATE OF CALIFORNIA9005 28,220.87 28,220.8707/01/2022 28,220.87PAYROLL 1 0.000STATE OF CALIFORNIA9014 20,429.84 20,429.8407/01/2022 20,429.84UBNA-FLEX ACCT 1 0.00 109,220,830.93 108,347,319.43 3.149 322 1Average Balance 106,097,347.28 108,272,502.06Total Cash and Investments Portfolio OTAY NL! APData Updated: SET_ME8: 02/18/2023 15:05 Run Date: 02/18/2023 - 15:05 PM (PRF_PM2) 7.3.0 Month End Activity Report Sorted By Issuer January 1, 2023 - January 31, 2023 Current Rate Transaction Date Balance Beginning Balance Ending Par Value Percent of Portfolio Par Value CUSIP Investment #Issuer Purchases orDeposits Redemptions orWithdrawals Issuer: Blackrock T - Fund Inst Money Market Blackrock T - Fund Inst9010 26.912.040 0.00RESERVE-10A WRB Blackrock T - Fund Inst9011 52.312.040 0.00RESERVE 10 BABS 0.0024,408.92 24,488.14Subtotal and Balance 79.22 79.22 0.0024,408.92 24,488.140.023%Issuer Subtotal Issuer: STATE OF CALIFORNIA Union Bank STATE OF CALIFORNIA9004 1,554,456.590.750 880,766.94UNION OPERATING STATE OF CALIFORNIA9014 220.00 12,660.83UBNA-FLEX ACCT 893,427.77814,153.40 1,475,402.22Subtotal and Balance 1,554,676.59 Local Agency Investment Fund (LAIF) STATE OF CALIFORNIA9001 17,145,639.892.425 9,900,000.00LAIF 9,900,000.0026,848,720.74 34,094,360.63Subtotal and Balance 17,145,639.89 18,700,316.48 10,793,427.7727,662,874.14 35,569,762.8532.829%Issuer Subtotal Issuer: FIRST AMERICAN US TREASURY Money Market FIRST AMERICAN US TREASURY9016 34,600.211.980 5,005,875.00OWD TRUST & CUS 5,005,875.005,223,514.03 252,239.24Subtotal and Balance 34,600.21 34,600.21 5,005,875.005,223,514.03 252,239.240.233%Issuer Subtotal Issuer: Federal Farm Credit Bank Federal Agency Issues - Bullet 11,000,000.00 11,000,000.00Subtotal and Balance Portfolio OTAY NL! APData Updated: SET_ME8: 02/18/2023 15:05 Run Date: 02/18/2023 - 15:05 DA (PRF_DA) 7.2.0 Report Ver. 7.3.5 Current Rate Transaction Date Balance Beginning Balance Ending Par Value Page 2 Percent of Portfolio Par Value January 1, 2023 - January 31, 2023 Activity Report Month End CUSIP Investment #Issuer Purchases orDeposits Redemptions orWithdrawals 0.00 0.0011,000,000.00 11,000,000.0010.153%Issuer Subtotal Issuer: Federal Home Loan Bank Federal Agency Issues- Callable Federal Home Loan Bank2412 5,000,000.004.875 01/27/2023 0.003130AUGF5 0.0012,000,000.00 17,000,000.00Subtotal and Balance 5,000,000.00 Federal Agency Issues - Bullet 11,000,000.00 11,000,000.00Subtotal and Balance 5,000,000.00 0.0023,000,000.00 28,000,000.0025.843%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 14,396,000.0013.287%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 4,000,000.003.692%Issuer Subtotal Issuer: San Diego County San Diego County Pool San Diego County9007 51,415.283.160 10,000,000.00SD COUNTY POOL 10,000,000.0025,053,413.92 15,104,829.20Subtotal and Balance 51,415.28 51,415.28 10,000,000.0025,053,413.92 15,104,829.2013.941%Issuer Subtotal 110,360,211.01 108,347,319.43Total25,799,302.7723,786,411.19100.000% Portfolio OTAY NL! APData Updated: SET_ME8: 02/18/2023 15:05 Run Date: 02/18/2023 - 15:05 DA (PRF_DA) 7.2.0 Report Ver. 7.3.5 Month End Duration Report Sorted by Investment Type - Investment Type Through 01/31/2023 Investment #Security ID Issuer Investment Class Book Value Par Value Market Value Current Rate YTM Current Yield Maturity/ Call Date Duration Modified 360Fund Federal Home Loan Bank239599 2,000,000.00 1,898,100.003130AQL68 4.669 07/26/2024 1.4431,993,242.11 1.294Fair1.080000 Federal Home Loan Bank239699 2,000,000.00 1,938,220.003130ARE31 4.775 03/28/2024 1.1162,000,000.00 1.973Fair2.000000 Federal Home Loan Bank239899 2,000,000.00 1,955,840.003130ARWD9 4.850 02/16/2024 0.9972,000,000.00 2.615Fair2.650000 Federal Home Loan Bank240199 3,000,000.00 2,958,270.003130AT4S3 6.573 06/13/2024 1.2953,000,000.00 3.652Fair3.700000 Federal Home Loan Bank240399 3,000,000.00 2,985,030.003130ATLK1 4.806 10/28/2024 1.6373,000,000.00 4.438Fair4.500000 Federal Home Loan Mortgage240699 3,000,000.00 2,995,680.003134GX6A7 5.072 04/25/2025 2.0623,000,000.00 4.932Fair5.000000 Federal Home Loan Mortgage240799 1,600,000.00 1,598,128.003134GX5C4 5.074 11/08/2024 1.6551,600,000.00 4.932Fair5.000000 Federal Home Loan Mortgage240899 3,000,000.00 2,995,110.003134GY3P5 5.225 11/22/2024 1.6913,000,000.00 5.055Fair5.125000 Federal Home Loan Mortgage240999 3,000,000.00 2,996,340.003134GY3Q3 5.173 05/23/2024 1.2423,000,000.00 5.001Fair5.070000 Federal Home Loan Bank241299 5,000,000.00 5,008,000.003130AUGF5 4.662 10/27/2023 0.7155,000,000.00 4.818Fair4.875000 Federal Home Loan Mortgage239199 1,045,000.00 950,845.503137EAEX3 4.000 09/23/2025 2.5771,038,296.69 0.612Fair.3750000 Federal Home Loan Mortgage239299 2,751,000.00 2,503,134.903137EAEX3 4.000 09/23/2025 2.5772,732,989.03 0.618Fair.3750000 Federal National Mortage Assoc239399 2,000,000.00 1,903,280.003135G0X24 11.871 01/07/2025 1.7992,023,352.43 0.996Fair1.625000 Federal National Mortage Assoc239499 2,000,000.00 1,818,980.003135G06G3 20.453 11/07/2025 2.4861,965,232.35 1.129Fair.5000000 Federal Farm Credit Bank239799 2,000,000.00 1,935,360.003133ENVC1 4.285 04/25/2025 2.1191,993,837.74 2.855Fair2.750000 Federal Home Loan Bank239999 3,000,000.00 2,968,140.003130AT5B9 5.253 09/01/2023 0.5592,999,440.00 3.361Fair3.375000 Federal Home Loan Bank240099 3,000,000.00 2,950,800.003130AT4D6 6.766 06/14/2024 1.3002,995,256.04 3.449Fair3.375000 Federal Farm Credit Bank240299 3,000,000.00 3,015,060.003133ENP95 4.051 09/30/2025 2.4622,994,805.42 4.261Fair4.250000 Federal Home Loan Bank240499 3,000,000.00 2,996,010.003130ATND5 4.647 09/13/2024 1.5232,998,980.44 4.338Fair4.375000 Federal Farm Credit Bank240599 3,000,000.00 2,993,310.003133ENS43 4.515 10/17/2024 1.6112,991,480.67 4.488Fair4.375000 Federal Farm Credit Bank241099 3,000,000.00 2,991,120.003133EN4N7 4.417 12/20/2024 1.7852,994,957.86 4.284Fair4.250000 Federal Home Loan Bank241199 2,000,000.00 2,005,620.003130AUBA1 4.424 12/15/2023 0.8411,999,311.85 4.724Fair4.750000 Blackrock T - Fund Inst901099 8,317.79 8,317.79RESERVE-10A 2.040 0.0008,317.79 2.012 †Amort 2.040000 Blackrock T - Fund Inst901199 16,170.35 16,170.35RESERVE 10 2.040 0.00016,170.35 2.012 †Amort 2.040000 FIRST AMERICAN US TREASURY901699 252,239.24 252,239.24OWD TRUST &1.980 0.000252,239.24 1.953 †Amort 1.980000 Portfolio OTAY NL! APPage 1Data Updated: SET_ME8: 02/18/2023 15:05 Run Date: 02/18/2023 - 15:05 DU (PRF_DU) 7.1.1 Report Ver. 7.3.5 Investment #Security ID Issuer InvestmentClass BookValue ParValue MarketValue CurrentRate YTM Current Yield Maturity/Call Date DurationModified360 Sorted by Investment Type - Investment Type Duration Report Month End Through 01/31/2023 Fund STATE OF CALIFORNIA900199 34,094,360.63 33,459,839.28LAIF 2.425 0.00034,094,360.63 2.392Fair2.425000 San Diego County900799 15,104,829.20 14,525,000.00SD COUNTY 3.160 0.00015,104,829.20 3.117Fair3.160000 4.263 0.831106,797,099.84 106,871,917.21 104,621,945.06Report Total † † = Duration can not be calculated on these investments due to incomplete Market price data. Portfolio OTAY NL! APPage 2Data Updated: SET_ME8: 02/18/2023 15:05 Run Date: 02/18/2023 - 15:05 DU (PRF_DU) 7.1.1 Report Ver. 7.3.5 Month End GASB 31 Compliance Detail Sorted by Fund - Fund January 1, 2023 - January 31, 2023 Investment #Maturity Date BeginningInvested Value Purchaseof Principal InvestmentClassFundCUSIP Adjustment in Value EndingInvested ValueAdditionto Principal Redemptionof Principal AmortizationAdjustment Change inMarket Value Fund: Treasury Fund 2392 2,475,569.88Fair Value 09/23/2025 27,565.0299 2,503,134.903137EAEX30.00 0.00 0.00 0.00 2391 940,374.60Fair Value 09/23/2025 10,470.9099 950,845.503137EAEX30.00 0.00 0.00 0.00 2406 3,003,750.00Fair Value 04/25/2025 -8,070.0099 2,995,680.003134GX6A70.00 0.00 0.00 0.00 2408 3,003,900.00Fair Value 11/22/2024 -8,790.0099 2,995,110.003134GY3P50.00 0.00 0.00 0.00 2409 3,001,920.00Fair Value 05/23/2024 -5,580.0099 2,996,340.003134GY3Q30.00 0.00 0.00 0.00 2407 1,602,016.00Fair Value 11/08/2024 -3,888.0099 1,598,128.003134GX5C40.00 0.00 0.00 0.00 2393 1,889,280.00Fair Value 01/07/2025 14,000.0099 1,903,280.003135G0X240.00 0.00 0.00 0.00 2394 1,798,500.00Fair Value 11/07/2025 20,480.0099 1,818,980.003135G06G30.00 0.00 0.00 0.00 2396 1,930,660.00Fair Value 03/28/2024 7,560.0099 1,938,220.003130ARE310.00 0.00 0.00 0.00 2398 1,946,660.00Fair Value 02/16/2024 9,180.0099 1,955,840.003130ARWD90.00 0.00 0.00 0.00 2395 1,884,740.00Fair Value 07/26/2024 13,360.0099 1,898,100.003130AQL680.00 0.00 0.00 0.00 2411 2,005,180.00Fair Value 12/15/2023 440.0099 2,005,620.003130AUBA10.00 0.00 0.00 0.00 2403 2,976,630.00Fair Value 10/28/2024 8,400.0099 2,985,030.003130ATLK10.00 0.00 0.00 0.00 2404 2,987,790.00Fair Value 09/13/2024 8,220.0099 2,996,010.003130ATND50.00 0.00 0.00 0.00 2400 2,942,370.00Fair Value 06/14/2024 8,430.0099 2,950,800.003130AT4D60.00 0.00 0.00 0.00 2401 2,956,920.00Fair Value 06/13/2024 1,350.0099 2,958,270.003130AT4S30.00 0.00 0.00 0.00 2412 0.00Fair Value 10/27/2023 8,000.0099 5,008,000.003130AUGF55,000,000.00 0.00 0.00 0.00 2399 2,974,860.00Fair Value 09/01/2023 -6,720.0099 2,968,140.003130AT5B90.00 0.00 0.00 0.00 9014 32,870.67Amortized 0.0099 20,429.84UBNA-FLEX ACCT 0.00 220.00 12,660.83 0.00 9005 28,220.87Amortized 0.0099 28,220.87PAYROLL0.00 0.00 0.00 0.00 9004 750,011.84Amortized 0.0099 1,423,701.49UNION OPERATING 0.00 1,554,456.59 880,766.94 0.00 9002 100.02Amortized 0.0099 100.02UNION MONEY 0.00 0.00 0.00 0.00 9001 26,349,046.13Fair Value -134,846.7399 33,459,839.28LAIF0.00 17,145,639.89 9,900,000.00 0.00 9003 2,950.00Amortized 0.0099 2,950.00PETTY CASH 0.00 0.00 0.00 0.00 2405 2,988,690.00Fair Value 10/17/2024 4,620.0099 2,993,310.003133ENS430.00 0.00 0.00 0.00 2410 2,981,130.00Fair Value 12/20/2024 9,990.0099 2,991,120.003133EN4N70.00 0.00 0.00 0.00 2402 2,994,450.00Fair Value 09/30/2025 20,610.0099 3,015,060.003133ENP950.00 0.00 0.00 0.00 2397 1,921,980.00Fair Value 04/25/2025 13,380.0099 1,935,360.003133ENVC10.00 0.00 0.00 0.00 9007 24,095,000.00Fair Value 378,584.7299 14,525,000.00SD COUNTY POOL 0.00 51,415.28 10,000,000.00 0.00 9016 5,223,514.03Amortized 0.0099 252,239.24OWD TRUST & CUS 0.00 34,600.21 5,005,875.00 0.00 Portfolio OTAY NL! APData Updated: SET_ME8: 02/18/2023 15:05 Run Date: 02/18/2023 - 15:05 GD (PRF_GD) 7.1.1 Report Ver. 7.3.5 Investment #Maturity Date BeginningInvested Value Purchaseof Principal InvestmentClass Sorted by Fund - Fund Fund Page 2 CUSIP Adjustment in Value EndingInvested ValueAdditionto Principal Redemptionof Principal AmortizationAdjustment Change inMarket Value GASB 31 Compliance Detail Month End Fund: Treasury Fund 9010 8,290.88Amortized 0.0099 8,317.79RESERVE-10A WRB 0.00 26.91 0.00 0.00 9011 16,118.04Amortized 0.0099 16,170.35RESERVE 10 BABS 0.00 52.31 0.00 0.00 107,713,492.96Subtotal 396,745.91 106,097,347.285,000,000.00 18,786,411.19 25,799,302.77 0.00 107,713,492.96Total 106,097,347.28396,745.915,000,000.00 18,786,411.19 25,799,302.77 0.00 Portfolio OTAY NL! APData Updated: SET_ME8: 02/18/2023 15:05 Run Date: 02/18/2023 - 15:05 GD (PRF_GD) 7.1.1 Report Ver. 7.3.5 Month End Interest Earnings Sorted by Fund - Fund January 1, 2023 - January 31, 2023 Yield on Beginning Book Value Maturity Date Current Rate Ending Par Value EndingSecurity TypeFund Book Value Beginning Book Value Adjusted Interest Earnings AccretionAmortization/EarningsAdjusted InterestAnnualized YieldCUSIPInvestment # Interest Earned Fund: Treasury Fund 2,732,989.0323922,751,000.00 0.375FAC09/23/2025 859.69 567.58 1,427.270.615992,732,421.453137EAEX3 1,038,296.6923911,045,000.00 0.375FAC09/23/2025 326.56 211.24 537.800.610991,038,085.453137EAEX3 3,000,000.0024063,000,000.00 5.000MC104/25/2025 12,500.00 0.00 12,500.004.906993,000,000.003134GX6A7 3,000,000.0024083,000,000.00 5.125MC111/22/2024 12,812.50 0.00 12,812.505.029993,000,000.003134GY3P5 3,000,000.0024093,000,000.00 5.070MC105/23/2024 12,675.00 0.00 12,675.004.975993,000,000.003134GY3Q3 1,600,000.0024071,600,000.00 5.000MC111/08/2024 6,666.66 0.00 6,666.664.906991,600,000.003134GX5C4 2,023,352.4323932,000,000.00 1.625FAC01/07/2025 2,708.34 -1,006.57 1,701.770.990992,024,359.003135G0X24 1,965,232.3523942,000,000.00 0.500FAC11/07/2025 833.33 1,047.21 1,880.541.127991,964,185.143135G06G3 2,000,000.0023962,000,000.00 2.000MC103/28/2024 3,333.33 0.00 3,333.331.962992,000,000.003130ARE31 2,000,000.0023982,000,000.00 2.650MC102/16/2024 4,416.67 0.00 4,416.672.600992,000,000.003130ARWD9 1,993,242.1123952,000,000.00 1.080MC107/26/2024 1,800.00 378.95 2,178.951.287991,992,863.163130AQL68 1,999,311.8524112,000,000.00 4.750FAC12/15/2023 7,916.67 65.74 7,982.414.701991,999,246.113130AUBA1 3,000,000.0024033,000,000.00 4.500MC110/28/2024 11,250.00 0.00 11,250.004.415993,000,000.003130ATLK1 2,998,980.4424043,000,000.00 4.375FAC09/13/2024 10,937.50 52.56 10,990.064.315992,998,927.883130ATND5 2,995,256.0424003,000,000.00 3.375FAC06/14/2024 8,437.50 288.68 8,726.183.431992,994,967.363130AT4D6 3,000,000.0024013,000,000.00 3.700MC106/13/2024 9,250.00 0.00 9,250.003.630993,000,000.003130AT4S3 5,000,000.0024125,000,000.00 4.875MC110/27/2023 2,708.33 0.00 2,708.333.954990.003130AUGF5 2,999,440.0023993,000,000.00 3.375FAC09/01/2023 8,437.50 80.00 8,517.503.344992,999,360.003130AT5B9 1,423,701.4990041,423,701.49 0.750PA1 1,448.91 0.00 1,448.912.27599750,011.84UNION OPERATING 34,094,360.63900134,094,360.63 2.425LA1 65,832.27 0.00 65,832.272.8879926,848,720.74LAIF 2,991,480.6724053,000,000.00 4.375FAC10/17/2024 10,937.50 414.90 11,352.404.469992,991,065.773133ENS43 2,994,957.8624103,000,000.00 4.250FAC12/20/2024 10,625.00 222.78 10,847.784.265992,994,735.083133EN4N7 2,994,805.4224023,000,000.00 4.250FAC09/30/2025 10,625.00 162.50 10,787.504.241992,994,642.923133ENP95 1,993,837.7423972,000,000.00 2.750FAC04/25/2025 4,583.34 229.94 4,813.282.843991,993,607.803133ENVC1 15,104,829.20900715,104,829.20 3.160LA3 46,519.03 0.00 46,519.032.1869925,053,413.92SD COUNTY POOL 252,239.249016252,239.24 1.980PA2 7,457.61 0.00 7,457.611.681995,223,514.03OWD TRUST & CUS 8,317.7990108,317.79 2.040PA2 14.41 0.00 14.412.046998,290.88RESERVE-10A WRB 16,170.35901116,170.35 2.040PA2 28.01 0.00 28.012.0469916,118.04RESERVE 10 BABS Portfolio OTAY NL! APData Updated: SET_ME8: 02/18/2023 15:05 Run Date: 02/18/2023 - 15:05 IE (PRF_IE) 7.2.0 Report Ver. 7.3.5 MaturityDate CurrentRateEndingPar Value EndingSecurityTypeFund Page 2 Book ValueBeginningBook Value Adjusted Interest Earnings AccretionAmortization/EarningsAdjusted Interest January 1, 2023 - January 31, 2023 Interest Earnings Month End AnnualizedYieldCUSIPInvestment #InterestEarned 108,295,618.70Subtotal 108,220,801.33 2.955 278,656.172,715.51275,940.66110,218,536.57 108,295,618.70Total 108,220,801.33 2.955 278,656.172,715.51275,940.66110,218,536.57 Portfolio OTAY NL! APData Updated: SET_ME8: 02/18/2023 15:05 Run Date: 02/18/2023 - 15:05 IE (PRF_IE) 7.2.0 Report Ver. 7.3.5 46.."3:'031&3*0% /&5%&."/%4 $)&$,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$)"3(&4 /07%&$ $*5:53&"463&33&$-"*.&%8"5&3163$)"4& %&$&.#&3 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/ 4"/%*&(0$06/5:8"5&3"65)$"1"$*5:'&&4$0--&$5&% 4"/%*&(0$06/5:8"5&3"65)8"5&3%&-*7&3*&4$)"3(&4 %&$ 41&$*"-%*453*$53*4,&.1-0:&&.&%*$"-#&/&'*54 ."3 45"5&0'$"-*'03/*"$"4"-&464&5"9 5)253 6/*0/#"/,#*8&&,-:1":30--5"9&4 6/*0/#"/,#*8&&,-:1":30--5"9&4 64#"/,$"-$"3%&91&/4&4 .0/5)-: 70:"'*/"/$*"-#*8&&,-:"1-"/ 70:"'*/"/$*"-#*8&&,-:"1-"/ 505"-$"4)%*4#634&.&/54 3&$0..&/%&%"$5*0/ 5IBUUIF#PBSESFDFJWFEUIFBUUBDIFEMJTUPGEFNBOET +C"UUBDINFOU 163104& "UUBDIFEJTUIFMJTUPGEFNBOETGPSUIF#PBSEhTJOGPSNBUJPO '*4$"-*.1"$5 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. .BSDI Check Total 9,570.00 TUITION REIMBURSEMENT 215.00 215.00205931302/08/23 04349 CHAMBERS, JONATHAN JC020623 02/06/23 355.53 2059287 02/01/23 21172 CENTER FOR INTERNET 230131-0043713 01/31/23 ENDPOINT SECURITY SERV RENEWAL FY23 17,100.00 17,100.00 73.32 73.32 2059286 02/01/23 21722 CASPER COMPANY Ref002685274 01/30/23 UB Refund Cst #0000284877 355.53 DISINFECTION SYS IMPROVE (11/1/22-12/31/22)31,610.25 31,610.25 2059272 02/01/23 21715 CAROLYN KARINEN Ref002685267 01/30/23 UB Refund Cst #0000265341 2059312 02/08/23 15177 CAROLLO ENGINEERS INC FB32047 01/18/23 1,729.62 2059232 01/25/23 11057 CAREY, ANDREA 011823 01/18/23 EXPENSE REIMBURSEMENT 346.96 346.96 22,338.00 22,338.00 2059354 02/15/23 21746 CALTRANS Ref002687504 02/13/23 UB Refund Cst #0000283797 1,729.62 BROWN FIELD TECH PARK 4,220.87 4,220.87 2059231 01/25/23 14112 BSE ENGINEERING INC 22075411411 12/31/22 ELECTRICAL ENGINEERING SERV (DEC 2022) 2059311 02/08/23 21669 BROWN FIELD TECHNOLOGY PARK 020323 02/03/23 8,409.90 2059285 02/01/23 04209 BRAX COMPANY INC 42344 12/31/22 980-2 PUMP MOTOR #4 161,989.14 161,989.14 16,055.00 16,055.00 2059230 01/25/23 20125 AZTEC LANDSCAPING INC J1358 12/31/22 JANITORIAL SERVICES FY23 8,409.90 TELEPHONE SERV (12/12/2022 - 1/11/2023)3,722.14 3,722.14 2059284 02/01/23 20893 ATLAS TECHNICAL 1708 12/02/22 GEOTECHNICAL SERVICES (7/31/22-12/2/22) 2059310 02/08/23 07785 AT&T 19337992 01/12/23 50,809.36 2059229 01/25/23 00108 ACWA 10192022 10/19/22 MEMBERSHIP RENEWAL 26,800.00 26,800.00 67,744.53 67,744.53 2059228 01/25/23 20199 ASSOC OF CA WATER AGENCIES 123122 QTR 2 01/05/23 FY2023 WORKERS' COMP PROGRAM (QTR 2)50,809.36 UB Refund Cst #0000283116 1,806.96 1,806.96 2059227 01/25/23 17264 ARTIANO SHINOFF ABED 306531 01/18/23 PROF SERV (DEC 2022) CM20234 01/12/23 CMIS (12/1/22-12/31/22)660.00 2059283 02/01/23 21721 ANGUS ASPHALT Ref002685273 01/30/23 CM20231 01/12/23 CMIS (7/1/22-7/31/22)1,815.00 CM20233 01/12/23 CMIS (8/1/22-11/30/22)990.00 687.60 687.60 2059309 02/08/23 14462 ALYSON CONSULTING CM20232 01/12/23 CMIS (7/1/22-9/30/22)6,105.00 SEWER FLOW MONITORING FY23 890.00 890.00 2059226 01/25/23 07732 AIRGAS SPECIALTY PRODUCTS INC 9133643359 01/05/23 AS-NEEDED AQUA AMMONIA FY23 2059225 01/25/23 17989 ADS CORP 22446.22-1222 12/29/22 591.79 2059353 02/15/23 08488 ABLEFORCE INC 11432 02/10/23 SHAREPOINT & INTRANET SUPP SVCS FY23 1,050.00 1,050.00 Amount 2059308 02/08/23 15416 24 HOUR ELEVATOR INC 136647 02/01/23 ELEVATOR GENERAL MAINTENANCE FY23 591.79 CHECK REGISTER Otay Water District Date Range: 1/19/2023 - 2/15/2023 Check #Date Vendor Vendor Name Invoice Inv. Date Description 6,356.00 1,422.00 156.34 243.31 243.31 2059274 02/01/23 21708 EDWARD CARAZA Ref002685260 01/30/23 UB Refund Cst #0000028894 156.34 SOFTWARE LICENSE 7,164.00 7,164.00 2059290 02/01/23 02447 EDCO DISPOSAL CORPORATION 5458 013123 01/31/23 RECYCLED WASTE SERVICE FY23 2059289 02/01/23 17612 ECS IMAGING INC 17497 01/16/23 913.31 2059273 02/01/23 21709 DAVID SEMCO Ref002685261 01/30/23 UB Refund Cst #0000061121 215.66 215.66 49.17 49.17 2059317 02/08/23 11797 D&H WATER SYSTEMS INC 2023-0031 01/11/23 TOTAL ANALYZER PARTS 913.31 BUSINESS MEETING 240.00 240.00 2059239 01/25/23 11797 D&H WATER SYSTEMS INC 2022-1707 12/29/22 TOTAL ANALYZER PARTS 2059316 02/08/23 00693 CSDA - SAN DIEGO CHAPTER 02162023 02/06/23 193E628221222 01/04/23 SHUT DOWN TEST (12/2/22)79.00 193E636291222 01/04/23 DEVELOPER INSPECTION (12/8/22)79.00 193E637681222 01/04/23 SHUT DOWN TEST (12/21/22)158.00 193E633811222 01/04/23 DEVELOPER INSPECTION (12/22/22)158.00 395.00 193E602501222 01/04/23 SHUT DOWN TEST (12/20/22)395.00 193E637671222 01/04/23 SHUT DOWN TEST (12/21/22)158.00 MITIGATED NEGATIVE DECLARATION 2,814.00 2,814.00 2059238 01/25/23 00184 COUNTY OF SAN DIEGO 193E602351222 01/04/23 SHUT DOWN TEST (12/20/22) 2059237 01/25/23 00134 COUNTY OF SAN DIEGO P2460012023 01/20/23 3,779.02 2059315 02/08/23 00099 COUNTY OF SAN DIEGO DPWMWD1222 01/12/23 EXCAVATION PERMITS (DEC 2022)2,514.51 2,514.51 540.75 540.75 2059236 01/25/23 00099 COUNTY OF SAN DIEGO DPWMWD1122 12/12/22 EXCAVATION PERMITS (NOV 2022)3,779.02 CORROSION SERVICES (12/26/21-12/25/22)300.00 300.00 2059235 01/25/23 15049 CORELOGIC SOLUTIONS LLC 82158843 12/31/22 DATA SERVICES - PROPERTY DATA FY23 29189 12/31/22 BACTERIOLOGICAL TEST (12/14/22)138.00 2059314 02/08/23 20894 COFFMAN ENGINEERS INC 2212A282 01/18/23 29187 12/31/22 BACTERIOLOGICAL TEST (12/7/22)138.00 29188 12/31/22 BACTERIOLOGICAL TEST (12/7/22)138.00 29185 12/31/22 BACTERIOLOGICAL TEST (12/6/22)216.00 29191 12/31/22 BACTERIOLOGICAL TEST (12/15/22)186.00 29192 12/31/22 BACTERIOLOGICAL TEST (12/20/22)372.00 29196 12/31/22 BACTERIOLOGICAL TEST (12/28/22)324.00 29194 12/31/22 BACTERIOLOGICAL TEST (12/20/22-12/21/22)564.00 29193 12/31/22 BACTERIOLOGICAL TEST (12/20/22-12/21/22)468.00 29190 12/31/22 BACTERIOLOGICAL TEST (11/14/22-11/17/22)1,132.00 29195 12/31/22 BACTERIOLOGICAL TEST (12/20/22-12/21/22)1,032.00 20.00 2059234 01/25/23 04119 CLARKSON LAB & SUPPLY INC 29186 12/31/22 BACTERIOLOGICAL TEST (12/6/22-12/10/22)1,648.00 186.80 186.80 2059233 01/25/23 08895 CITY OF LA MESA 24981 11/28/22 FINGERPRINTING SERVICES 20.00 TUITION REIMBURSEMENT 215.00 215.00 2059288 02/01/23 21050 CHULA VISTA ELEMENTARY SCHOOL AR053377 12/31/22 WATER CONSERVATION BUS TRANSPORT 2059313 02/08/23 04349 CHAMBERS, JONATHAN JC020623 02/06/23 1,411.63 8,430.07 6,536.12 494.06 4,362.59 2,067.00 AS-NEEDED SODIUM HYPOCHLORITE FY23 1,734.85 866430 01/05/23 AS-NEEDED SODIUM HYPOCHLORITE FY23 1,630.29 2059246 01/25/23 19978 HASA INC.865727 12/29/22 13416739 01/11/23 HACH CHEMKEY REAGENTS FY23 168.74 13419451 01/12/23 HACH CHEMKEY REAGENTS FY23 56.24 HACH CHEMKEY REAGENTS FY23 1,552.86 13416738 01/11/23 5500SC ANALYZER SUPPLIES FY23 289.16 13405768 01/03/23 HACH CHEMKEY REAGENTS FY23 317.30 2059322 02/08/23 00174 HACH COMPANY 13422089 01/13/23 HACH CHEMKEY REAGENTS FY23 3,073.57 13415011 01/10/23 5500SC ANALYZER SUPPLIES FY23 971.72 2059245 01/25/23 00174 HACH COMPANY 13407136 01/03/23 1,871.78 2059244 01/25/23 03537 GHA TECHNOLOGIES INC 101268904 01/10/23 MERAKI CLOUD CONTROLLER LICENSES 3,441.85 3,441.85 100.00 100.00 2059321 02/08/23 03537 GHA TECHNOLOGIES INC 101271055 01/19/23 HP WORKSTATION 1,871.78 BI WEEKLY PAYROLL DEDUCTION 100.00 100.00 2059358 02/15/23 21053 FRANCHISE TAX BOARD Ben2687543 02/16/23 BI WEEKLY PAYROLL DEDUCTION 2059292 02/01/23 21053 FRANCHISE TAX BOARD Ben2685316 02/02/23 FLEETWASH SERVICES FY23 467.80 2740317 01/06/23 FLEETWASH SERVICES FY23 26.26 2059243 01/25/23 11962 FLEETWASH INC 272112 01/10/23 1,813.44 2059320 02/08/23 11962 FLEETWASH INC 2748098 01/20/23 FLEETWASH SERVICES FY23 131.29 131.29 1,813.44 1,813.44 2059357 02/15/23 21744 FJ WILLERT CONTRACTING CO Ref002687502 02/13/23 UB Refund Cst #0000283066 1,813.44 DOCUMENT SERVICE (MONTHLY)99.00 99.00 2059356 02/15/23 21743 FJ WILLERT CONTRACTING Ref002687501 02/13/23 UB Refund Cst #0000273478 2059242 01/25/23 17888 FIRST AMERICAN DATA TREE LLC 9003401222 12/31/22 METER BOX LIDS 6,141.75 0819273 01/11/23 INVENTORY 394.37 2059319 02/08/23 03546 FERGUSON WATERWORKS # 1083 0812989 01/17/23 INVENTORY 4,742.08 0813452 01/05/23 INVENTORY 3,687.99 02/13/23 UB Refund Cst #0000283143 1,653.78 1,653.78 2059241 01/25/23 03546 FERGUSON WATERWORKS # 1083 0819213 01/09/23 1,384.37 165612200 01/20/23 VISION BENEFITS ADMINISTRATION (CY2023)27.26 2059355 02/15/23 21745 F J WILLERT CONSTRUCTION CO Ref002687503 MS SOFTWARE MAINTENANCE RENEWAL 2,838.20 2,838.20 2059291 02/01/23 20511 EYEMED (FIDELITY)165612050 01/20/23 VISION BENEFITS ADMINISTRATION (CY2023) 2059318 02/08/23 20794 ENTISYS 360 190904 01/19/23 156.34 2059240 01/25/23 14323 EDWARDS, JEFFREY 011823 01/18/23 EXPENSE REIMBURSEMENT 295.00 295.00 2059274 02/01/23 21708 EDWARD CARAZA Ref002685260 01/30/23 UB Refund Cst #0000028894 156.34 4,927.15 2,180.84 7,870.00 2,901.40 18,650.82 10,599.46 2,136.00 2,136.00 2,136.00 2059361 02/15/23 20752 IWG TOWERS ASSETS II LLC 410323138 02/01/23 ANTENNA SUBLEASE FY23 2,136.00 INTERNATIONAL INDUSTRIAL PARK 965.98 965.98 2059253 01/25/23 20752 IWG TOWERS ASSETS II LLC 410212406 01/01/23 ANTENNA SUBLEASE FY23 2059331 02/08/23 21727 INTERNATIONAL INDUSTRIAL 020323 02/03/23 BILL PROCESSING SERVICES FY23 7,912.54 228799 01/21/23 BILL PROCESSING SERVICES FY23 2,686.92 227668 01/02/23 BILL PROCESSING SERVICES FY23 2,761.41 2059360 02/15/23 08969 INFOSEND INC 228800 01/21/23 BILL PROCESSING SERVICES FY23 12,515.35 227148 12/31/22 BILL PROCESSING SERVICES FY23 3,374.06 2059252 01/25/23 08969 INFOSEND INC 227149 12/31/22 2,358.90 00000050300 01/20/23 ENVIRONMENTAL SVCS (11/26/22-12/31/22)430.00 00000050288 01/20/23 ENVIRONMENTAL SVCS (11/26/22-12/31/22)112.50 LAND SURVEYING SERV (11/26/22-12/31/22)2,096.00 2,096.00 2059330 02/08/23 15622 ICF JONES & STOKES INC 00000050280 01/20/23 ENVIRONMENTAL SVCS (11/26/22-12/31/22) 2059251 01/25/23 13349 HUNSAKER & ASSOCIATES 2022120009 01/10/23 19,160.34 2059329 02/08/23 06511 HUDSON SAFE-T-LITE RENTALS 00123768 01/11/23 REFLECTIVE CONES 5,387.50 5,387.50 1,677.99 1,677.99 2059250 01/25/23 21322 HPS WEST INC.0001425 01/03/23 INVENTORY 19,160.34 ESCAYA PERIMETER PARK 4,332.15 4,332.15 2059328 02/08/23 20436 HOMEFED VILLAGE III 020323 02/03/23 OR V3 PHASE 3 20230009 01/13/23 PROJECT FUNDING SERV (10/2/22-12/31/22)576.25 2059327 02/08/23 20816 HOMEFED CORPORATION 020323 02/03/23 2,775.00 2,775.00 2059326 02/08/23 20950 HOCH CONSULTING APC 20230010 01/13/23 GRANT WRITING (10/1/22-12/31/22)7,293.75 DEVELOPER REFUND 41,609.67 41,609.67 2059249 01/25/23 21321 HILTS CONSULTING GROUP INC 61134REV1 01/05/23 870-1 RES EVAL (DEC 2022) 2059248 01/25/23 21687 HENDERSON HOSPITALITY 010523 01/05/23 10,890.00 2059247 01/25/23 18436 HAZEN AND SAWYER DPC 2009400613 01/03/23 WATER FACILITIES MASTER PLAN (NOV 2022)15,820.00 15,820.00 229.00 229.00 2059325 02/08/23 18436 HAZEN AND SAWYER DPC 2009400614 01/16/23 WATER FACILITIES MASTER PLAN (DEC 2022)10,890.00 AS-NEEDED SODIUM HYPOCHLORITE FY23 996.53 996.53 2059324 02/08/23 21724 HAZARD, AARON 011723 01/17/23 EXPENSE REIMBURSEMENT 867387 01/11/23 AS-NEEDED SODIUM HYPOCHLORITE FY23 437.45 2059359 02/15/23 19978 HASA INC.868496 01/19/23 AS-NEEDED SODIUM HYPOCHLORITE FY23 1,071.21 867552 01/12/23 AS-NEEDED SODIUM HYPOCHLORITE FY23 672.18 2059323 02/08/23 19978 HASA INC.868200 01/18/23 865725 12/29/22 AS-NEEDED SODIUM HYPOCHLORITE FY23 1,199.25 866021 01/04/23 AS-NEEDED SODIUM HYPOCHLORITE FY23 362.76 9,237.37 9,190.05 14,538.42 8,545.80 30,364.00 1,850.00 ENGINEERING DESIGN SERV (NOV 2022)550.00 550.00 2059335 02/08/23 18332 NV5 INC 307433 12/27/22 RSD/JAMUL PL REPLACE (NOV 2022) 2059295 02/01/23 18332 NV5 INC 307370 12/23/22 9,689.00 2059258 01/25/23 20996 NORTH CAROLINA DEPT OF REVENUE 601397030 12/31/22 WITHHOLDING TAX 4TH QTR 2022 724.50 724.50 107.97 107.97 2059257 01/25/23 17261 NATURESCAPE SERVICES 6432 12/31/22 LANDSCAPE MAINTENANCE SERVICES FY23 9,689.00 PLAN CHECK SERVICES (NOV 2022)8,431.00 8,431.00 2059279 02/01/23 21710 NANCY SCHEFFLER Ref002685262 01/30/23 UB Refund Cst #0000143852 2059256 01/25/23 19824 MURRAYSMITH INC N213201CA0016 12/27/22 6,678.33 2059278 02/01/23 21719 MILTON MCCLURE Ref002685271 01/30/23 UB Refund Cst #0000277689 37.08 37.08 343.60 343.60 2059365 02/15/23 06302 MCCROMETER INC 589214 01/16/23 10" MAGMETER REPLACEMENT 6,678.33 EXPENSE REIMBURSEMENT 1,061.47 1,061.47 2059255 01/25/23 15599 MARTINEZ, JOSE 121422121622 12/16/22 EXPENSE REIMBURSEMENT 20258046 01/20/23 COVER DRAIN HOSE REPLACEMENT 7,600.00 2059364 02/15/23 15599 MARTINEZ, JOSE 112822120122 12/01/22 472.00 472.00 2059294 02/01/23 19742 MARINE INDUSTRIAL TANK INC 20288044 01/26/23 RESERVOIR CLEANING & INSPECTION FY23 22,764.00 AS-NEEDED PAVING SERVICES FY23 3,607.01 3,607.01 2059293 02/01/23 02063 LA MESA - SPRING VALLEY 4658 & 4659 01/26/23 WATER CONSERVATION - BUS TRANSPORT 2059254 01/25/23 05840 KIRK PAVING INC 22-115-10 01/09/23 AS-NEEDED EMERGENCY PAVING SERV FY23 8,118.51 22-172-6R 12/07/22 RETAINAGE RELEASE 427.29 22-115-11 01/13/23 AS-NEEDED PAVING SERVICES FY23 2,999.91 2059363 02/15/23 05840 KIRK PAVING INC 22-172-6 12/07/22 AS-NEEDED PAVING SERVICES FY23 6,456.15 22-115-12 01/19/23 AS-NEEDED PAVING SERVICES FY23 5,082.36 020323 02/03/23 OTAY CROSSING COMMERCE PARK 2,707.38 2059334 02/08/23 05840 KIRK PAVING INC 22-115-13 01/20/23 75.51 75.51 2059333 02/08/23 21541 KEARNY PCCP OTAY 311 LLC 020323A 02/03/23 OTAY LOT 18 6,482.67 CUSTOMER REFUND 2,288.49 2,288.49 2059277 02/01/23 21711 JUDAH MICHAEL Ref002685263 01/30/23 UB Refund Cst #0000216218 2059362 02/15/23 21747 JOY REYES 5312021323 02/13/23 7,922.33 020323B 02/03/23 ST ANDREWS OTAY MESA CTR LOT 2 812.46 020323A 02/03/23 ST ANDREWS OTAY MESA CTR LOT 1 502.58 UB Refund Cst #0000281758 35.50 35.50 2059332 02/08/23 21593 JJB SILVERHAWK LP 020323 02/03/23 ST ANDREWS OTAY MESA CTR LOT 4 & 5 2059276 02/01/23 21720 JEFFREY HENDERSON Ref002685272 01/30/23 2,136.00 2059275 02/01/23 21717 JANINE ENGSTROM Ref002685269 01/30/23 UB Refund Cst #0000266295 26.31 26.31 2059361 02/15/23 20752 IWG TOWERS ASSETS II LLC 410323138 02/01/23 ANTENNA SUBLEASE FY23 2,136.00 2,457.50 3,657.03 129,207.58 UTILITY EXPENSES (MONTHLY)89,112.48 012723A 01/27/23 UTILITY EXPENSES (MONTHLY)34,631.65 2059346 02/08/23 00121 SAN DIEGO GAS & ELECTRIC 013023 01/30/23 87,635.04 012723 01/27/23 UTILITY EXPENSES (MONTHLY)40,393.39 012623 01/26/23 UTILITY EXPENSES (MONTHLY)1,179.15 UTILITY EXPENSES (MONTHLY)1,363.66 1,363.66 2059302 02/01/23 00121 SAN DIEGO GAS & ELECTRIC 012423 01/24/23 UTILITY EXPENSES (MONTHLY) 2059263 01/25/23 00121 SAN DIEGO GAS & ELECTRIC 011023 01/10/23 125.00 2059345 02/08/23 02586 SAN DIEGO COUNTY ASSESSOR 202300088 02/02/23 MONTHLY ASSESSOR DATA FY23 125.00 125.00 1,688.99 1,688.99 2059301 02/01/23 02586 SAN DIEGO COUNTY ASSESSOR 202300040 01/12/23 MONTHLY ASSESSOR DATA FY23 125.00 STRAT PLAN CUSTOM SFTWRE APPLICATION 6,375.00 6,375.00 2059300 02/01/23 21718 RYAN COMPANIES US INC Ref002685270 01/30/23 UB Refund Cst #0000267176 2059262 01/25/23 21706 ROOIBAARD GROUP LLC RB-02170 01/20/23 982.91 2059344 02/08/23 02923 RICHARD BRADY & ASSOCIATES 2212130 01/24/23 DESIGN JAMUL PS (10/1/22-12/31/22)290.00 290.00 5,500.00 5,500.00 2059299 02/01/23 15857 REPUBLIC SERVICES 4530-000032755 12/31/22 ACP DISPOSAL 982.91 WATER & SEWER COST OF SERVICE STUDIES 4,642.50 4,642.50 2059343 02/08/23 14776 RALPH ANDERSEN & ASSOCIATES 04125 01/12/23 COMPENSATION & BENEFITS STUDY 2059342 02/08/23 20861 RAFTELIS 26455 01/13/23 3,870.15 2059280 02/01/23 21712 RAFAEL SILVA Ref002685264 01/30/23 UB Refund Cst #0000248991 74.63 74.63 1,404.71 1,404.71 2059341 02/08/23 18611 PRESIDIO OTAY 225 LLC 020323 02/03/23 MONTERRA - OTAY RANCH VILLAGE 2 SOUTH 3,870.15 OUTSIDE SERVICES - PROFESSIONAL WRITING 1,205.75 1,205.75 2059340 02/08/23 21726 PRESIDIO CORNERSTONE 020323 02/03/23 MARTINEZ DR RECYCLE SERVICE 2059298 02/01/23 06419 PLANT SOUP INC 1404 01/06/23 990.00 2059339 02/08/23 15081 PINOMAKI DESIGN 6247 02/01/23 AS-NEEDED GRAPHIC DESIGN SERVICES FY22 170.00 170.00 880.00 880.00 2059297 02/01/23 00137 PETTY CASH CUSTODIAN 013023 01/30/23 PETTY CASH REIMBURSEMENT 990.00 TOWEL LAUNDRY SERVICE FY23 208.50 208.50 2059261 01/25/23 00137 PETTY CASH CUSTODIAN 011923 01/19/23 PETTY CASH REIMBURSEMENT S100442735.004 01/03/23 INVENTORY 225.99 2059338 02/08/23 19310 PALM LAUNDRY INC 250 02/01/23 4,050.00 2059260 01/25/23 01002 PACIFIC PIPELINE SUPPLY INC S100442735.003 01/03/23 INVENTORY 3,431.04 6,024.25 6,024.25 2059296 02/01/23 19636 OT ELECTRICAL 10222 01/26/23 OPERATIONS POWER CIRCUITS 4,050.00 TUITION REIMBURSEMENT 1,440.00 1,440.00 2059337 02/08/23 10099 OMC PROPERTIES LLC 020323 02/03/23 TPM 21140 01/31/23 EXPENSE REIMBURSEMENT 180.00 180.00 2059259 01/25/23 03215 O'DONNELL, MICHAEL MO012323 01/23/23 309647 01/09/23 ENGINEERING DESIGN SERV (DEC 2022)607.50 2059336 02/08/23 03215 O'DONNELL, MICHAEL 013123 124,708.75 89,449.39 2,957.00 21,959.01 825.57 879.94 2,830.00 TUITION REIMBURSEMENT 401.00 401.00205926701/25/23 21707 VASQUEZ, JAVIER JV012023 01/20/23 CMIS (DEC 2022)1,815.00 SD331001 01/03/23 CMIS (DEC 2022)1,015.00 01/05/23 ASSY KITS ETC FOR AVK FIRE HYDRANTS 24,512.40 24,512.40 2059266 01/25/23 08028 VALLEY CONSTRUCTION MANAGEMENT SD9237705 01/02/23 733.47 01339535 01/10/23 PORT. TOILET RENTAL FY23 146.47 2059351 02/08/23 03352 UNITED WATER WORKS INC S100116244.001 PORT. TOILET RENTAL FY23 146.47 146.47 2059306 02/01/23 15675 UNITED SITE SERVICES INC 01341526 01/10/23 PORT. TOILET RENTAL FY23 2059371 02/15/23 15675 UNITED SITE SERVICES INC 01416670 02/07/23 UNDERGROUND ALERTS (MONTHLY)585.75 222302294 01/01/23 DIG SAFE BOARD FEES (MONTHLY)239.82 2059265 01/25/23 00427 UNDERGROUND SERVICE ALERT 1220220499 01/01/23 1,374.42 2059370 02/15/23 20891 U.S. BANK NATIONAL ASSOCIATION 6741039 11/25/22 ADM FEES 2018 BOND (11/1/2022-10/31/2023)2,750.00 2,750.00 281.16 281.16 2059305 02/01/23 21714 TPO LLC Ref002685266 01/30/23 UB Refund Cst #0000265125 1,374.42 EASTLAKE HS TITLE IX SOFTBALL 3,691.65 3,691.65 2059369 02/15/23 21739 THOMAS RUIZ 9728021323 02/13/23 CUSTOMER REFUND 422424 01/10/23 UNLEADED & DIESEL FUEL 8,465.29 2059350 02/08/23 03476 SWEETWATER UNION HS DISTRICT 020323 02/03/23 2,657.28 2059264 01/25/23 10339 SUPREME OIL COMPANY 422301 01/10/23 UNLEADED & DIESEL FUEL 13,493.72 11,379.76 11,379.76 2059349 02/08/23 15439 SUNRANCH CAPITAL PARTNERS LLC 020323 02/03/23 MEADOW PARK 2,657.28 LICENSE RENEWAL 180.00 180.00 2059304 02/01/23 15974 SUN LIFE FINANCIAL 38166010123 01/01/23 LIFE INSURANCE AND STD/LTD (JAN 2023) 2059368 02/15/23 00274 STATE OF CALIFORNIA 83269021323 02/13/23 553.85 2059303 02/01/23 21115 SONIA RIVAS Ben2685314 02/02/23 BI-WEEKLY PAYROLL DEDUCTION 553.85 553.85 105.90 105.90 2059367 02/15/23 21115 SONIA RIVAS Ben2687541 02/16/23 BI-WEEKLY PAYROLL DEDUCTION 553.85 ON-DEMAND SECURITY RESPONSE FY23 605.00 605.00 2059281 02/01/23 21716 SHAWTISHA ALFONSO Ref002685268 01/30/23 UB Refund Cst #0000266202 366 11/15/22 870-2 #2 & #4 ENGINE REPAIR 495.00 2059348 02/08/23 19603 SECURITAS SECURITY SVC USA INC 11145778 02/02/23 870-2 #2 & #4 ENGINE REPAIR 1,891.00 365 11/11/22 870-2 #2 & #4 ENGINE REPAIR 571.00 2059347 02/08/23 21627 SAN DIEGO POWER LLC 380 12/02/22 UTILITY EXPENSES (MONTHLY)89,411.84 020223 02/02/23 UTILITY EXPENSES (MONTHLY)37.55 013123A 01/31/23 UTILITY EXPENSES (MONTHLY)964.62 2059366 02/15/23 00121 SAN DIEGO GAS & ELECTRIC 020623 02/06/23 153 Checks 90.17 90.17 Amount Pd Total:1,271,391.79 Check Grand Total:1,271,391.79 EMPLOYEE BENEFITS FY23 855.00 855.00 2059377 02/15/23 21741 ZINA RAZUKI Ref002687499 02/13/23 UB Refund Cst #0000242851 2059376 02/15/23 08023 WORKTERRA 0104924 01/31/23 49.92 2059307 02/01/23 19866 WOOD RODGERS INC 165640 12/30/22 ENGINEERING DESIGN SERVICES (DEC 2022)13,696.00 13,696.00 1,330.00 1,330.00 2059375 02/15/23 21742 WISAM AL AATHAMI Ref002687500 02/13/23 UB Refund Cst #0000267114 49.92 CUSTOMER REFUND 166.23 166.23 2059271 01/25/23 20611 WIMMER YAMADA AND CAUGHEY 0011531 12/31/22 ADMIN LANDSCAPE DESIGN REFRESH 2059374 02/15/23 21740 WILSON TANG 1353021322 02/13/23 1,756.25 2059270 01/25/23 01343 WE GOT YA PEST CONTROL INC 60359 01/06/23 AS-NEEDED BEE REMOVAL FY23 125.00 125.00 16,000.00 16,000.00 2059269 01/25/23 15726 WATER SYSTEMS CONSULTING INC 7471 12/31/22 HYDRAULIC MODELING (DEC 2022)1,756.25 SECURITY ALARM MONITORING FY23 2,576.92 2,576.92 2059373 02/15/23 14879 WATER CONSERVATION GARDEN JPA 9552 01/01/23 GARDEN FUNDING CONTRIBUTION 2059268 01/25/23 15807 WATCHLIGHT CORPORATION 791523 01/15/23 6,710.26 2059282 02/01/23 21713 WASA ALHASSAN Ref002685265 01/30/23 UB Refund Cst #0000264223 213.00 213.00 2,272.15 2,272.15 2059372 02/15/23 21725 VILLAGE II OF OTAY HB SUB GP 020323-D0908 02/03/23 OTAY RANCH V2 NR-11 AVIARE 6,710.26 TUITION REIMBURSEMENT 401.00 401.00 2059352 02/08/23 21725 VILLAGE II OF OTAY HB SUB GP 020323 02/03/23 PATERNA OPEN SPACE 2059267 01/25/23 21707 VASQUEZ, JAVIER JV012023 01/20/23