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HomeMy WebLinkAbout05-11-22 Board PacketOTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY BOARD OF DIRECTORS MEETING DISTRICT BOARDROOM 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA WEDNESDAY May 11, 2022 3:30 P.M. AGENDA 1. ROLL CALL 2. PLEDGE OF ALLEGIANCE 3. APPROVAL OF AGENDA 4. APPROVE THE MINUTES OF THE SPECIAL BOARD MEETING OF APRIL 27, 2022 5. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY’S AGENDA 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-di- rectors/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) APPROVE THE PURCHASE OF MATERIALS IN SUPPORT OF THE VALVE REPLACEMENT PROGRAM IN AN AMOUNT NOT-TO-EXCEED $200,000 FOR FISCAL YEAR 2023 b) APPROVE TO INCREASE CIP P2676 BUDGET IN THE AMOUNT OF $350,000.00 (FROM $375,000 TO $725,000) AND AWARD A PURCHASE ORDER TO BRAX COMPANY, INC. FOR THE 980-2 PUMP STATION MISCELLANEOUS REPLACEMENTS PROJECT IN AN AMOUNT NOT- TO-EXCEED $230,082.98 c) ADOPT RESOLUTION NO. 4408, THE ANNEXATION OF THE PROPERTY OF VILLAGE 3 WEST R-20 WATER ANNEXATION, 0 HERITAGE ROAD, CHULA VISTA, CA 91913, APN: 644-060-13-00, TO THE OTAY WATER DISTRICT AND TO WATER IMPROVEMENT DISTRICT NO. 22/27 d) AWARD OF A PROFESSIONAL ENGINEERING SERVICES CONTRACT TO MICHAEL BAKER INTERNATIONAL FOR CONSTRUCTION MANAGEMENT AND INSPECTION SUPPORT OF THE 1655-1 RESERVOIR 0.5 MG RESERVOIR CONSTRUCTION AND RANCHO JAMUL HYDROPNEUMATIC PUMP STATION MODIFICATION PROJECT IN AN AMOUNT NOT-TO-EXCEED $762,496 e) RECEIVE THE DISTRICT’S POLICY NO. 27, INVESTMENT POLICY, OF THE DISTRICT’S CODE OF ORDINANCES FOR REVIEW AND RE- DELEGATE AUTHORITY FOR ALL INVESTMENT RELATED ACTIVITIES TO THE CHIEF FINANCIAL OFFICER, IN ACCORDANCE WITH GOVERNMENT CODE SECTION 53607 f) APPROVE AN AMENDMENT TO THE DISTRICT’S PURCHASING MANUAL, SECTION 1.2, “ETHICS STATEMENT” TO INCORPERATE THE DISTRICT’S CODE OF ORDINANCES POLICY 41 (EMPLOYEE COMPLIANCE WITH DISTRICT’S CONFLICT OF INTEREST CODE) AND POLICY 50 (ANTIFRAUD POLICY) TO ADD DEFINITION TO “HIGH STANDARDS OF ETHICAL BEHAVIOR” IN PROCUREMENT; AND APPROVE AN AMENDMENT TO SECTION 2.2.5, “PURCHASING AND FACILITIES MANAGER” TO CLARIFY AND REAFFIRM THE DISTRICT’S COMMITMENT TO BEST VALUE PROCUREMENT ACTION ITEMS 7. BOARD a) AUTHORIZE STAFF TO CONDUCT REMOTE TELECONFERENCE MEET- INGS OF THE BOARD OF DIRECTORS INCLUDING COMMITTEE MEET- INGS, PURSUANT TO RESOLUTION NO. 4401, WHICH THE BOARD ADOPTED AT A SPECIAL BOARD MEETING ON SEPTEMBER 27, 2021, AND IN ACCORDANCE WITH THE PROVISIONS OF GOVERNMENT CODE § 54953(e) FOR THE NEXT 30 DAYS BECAUSE (1) A STATE OF EMERGENCY RELATED TO COVID-19 IS CURRENTLY IN EFFECT; (2) LOCAL OFFICIALS IN SAN DIEGO COUNTY HAVE IMPOSED OR REC- OMMENDED MEASURES TO PROMOTE SOCIAL DISTANCING IN CONNECTION WITH COVID-19; AND (3) DUE TO THE COVID-19 EMER- GENCY, MEETING IN PERSON WOULD PRESENT IMMINENT RISKS TO THE HEALTH AND SAFETY OF ATTENDEES (MARTINEZ) b) DISCUSSION OF 2022 BOARD MEETING CALENDAR (TITA RAMOS- KROGMAN) REPORTS 8. GENERAL MANAGER’S REPORT 9. SAN DIEGO COUNTY WATER AUTHORITY UPDATE 10. DIRECTORS' REPORTS/REQUESTS 11. PRESIDENT’S REPORT/REQUESTS RECESS TO CLOSED SESSION 12. CLOSED SESSION a) DISCUSSION RELATING TO CORONAVIRUS (COVID-19) AND PUBLIC SERVICES [GOVERNMENT CODE §54957] b) SECURITY OF PUBLIC SERVICES OR FACILITIES [GOVERNMENT CODE §54957] c) LIABILITY CLAIMS PURSUANT TO GOVERNMENT CLAIM SECTION 54956.95 CLAIMANT: MR. MARK POPPETT, ATTORNEY FOR MS. JORDAN SCHUSTER AND MRS. JESSICA SCHUSTER AGENCY CLAIMED AGAINST: OTAY WATER DISTRICT d) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION GOVERNMENT CODE SECTION 54956.9(c) e) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOV- ERN- MENT CODE §54956.9] MARK COZIAHR, ET AL. vs. OTAY WATER DISTRICT, CASE NO. 37- 2015-000-CU-MC-CTL f) EVALUATION OF GENERAL COUNSEL Pursuant to Government Code §54954.5 RETURN TO OPEN SESSION 13. 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 14. NO MATTERS TO DISCUSS 15. 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 May 6, 2022, I posted a copy of the foregoing agenda near the regular meeting place of the Board of Directors of Otay Water District, said time being at least 72 hours in advance of the regular meeting of the Board of Directors (Government Code Section §54954.2). Executed at Spring Valley, California on May 6, 2022. /s/ Tita Ramos-Krogman, District Secretary 1 MINUTES OF THE SPECIAL BOARD MEETING OF THE BOARD OF DIRECTORS OTAY WATER DISTRICT April 27, 2022 1.President Smith called the meeting to order at 12:07 p.m. 2.ROLL CALL Directors Present:Croucher (Arrived at 12:30 p.m. via Zoom), Keyes, Lopez, Robak and Smith Directors Absent: None Staff Present: General Manager Jose Martinez, General Counsel Dan Shinoff, General Counsel Jeanne Blumenfeld, Chief of Engineering Rod Posada, Chief Financial Officer Joe Beachem, Chief of Administration Adolfo Segura, Chief of Operations Andrew Jackson, Asst. Chief of Finance Kevin Koeppen, District Secretary Tita Ramos-Krogman and others per attached list. 3.PLEDGE OF ALLEGIANCE 4.APPROVAL OF THE AGENDA A motion was made by Director Robak, seconded by Director Keyes and carried with the following vote: Ayes: Directors Keyes, Lopez, Robak and Smith Noes: None Abstain: None Absent: Croucher to approve the agenda. 5.PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA No one wished to be heard. WORKSHOP 6.DISCUSSION OF THE FISCAL YEAR 2023 BUDGET KEY FIGURES AND ASSUMPTIONS AGENDA ITEM 4 2 Assistant Chief Financial Officer Kevin Koeppen indicated that the board received the annual economic outlook presentation from economist, Mr. Alan Nevin, Director of Economic Research of Vertex, at the April 6, 2022 regular board meeting. Presentations were then provided by staff that included the workshop agenda, budget objectives, budget schedule, budget process, Proposition 218 – Water and Sewer, challenges and strengths for the upcoming fiscal year, drought resiliency, District’s unprecedented actions advocating for customers and applying for stimulus and assistance, the board’s proactive approach to financial and operational stability, the development of the Capital Improvement Program for FY 2023 to FY 2028, Strategic Plan strategies and objectives, and the key assumptions staff is utilizing to develop the budget. After the presentations, there were questions asked by members of the board and responses were provided by staff. In response to an inquiry from the board, Chief Financial Officer Joe Beachem detailed that rate notices will be mailed out in July and August. It was also stated that rate notices will be brought before the Board of Directors prior to being mailed. Director Croucher arrived at 12:30 p.m. There was discussion regarding customer and employee surveys. Director Lopez stated he would like to see a customer survey conducted in the earlier portion of the FY 2023 to FY 2026 Strategic Plan. Communications Officer Tenille Otero indicated that the next customer survey is planned in 2023. Director Croucher stated his support for an employee survey in addition to the customer survey. Chief of Administrative Services Adolfo Segura confirmed an employee survey is tentatively planned for in either 2024 or 2025. Director Keyes noted the current reality of supply chain delays and inquired if staff has begun ordering supplies for planned projects to ensure supplies are in hand by the planned project start date. Engineering Manager Bob Kennedy informed the board that staff are working to give contractors more time before the start of projects to order supplies, including modifying contract language to allow contractors the ability to order supplies earlier than previously allotted. Agencies are also loaning equipment to other agencies to support one another if there is a shortage of supplies. Mr. Koeppen, answering a question from Director Lopez, confirmed that any debt issuance or refinancing activity would be brought before the Finance and Administration Committee as well as the Board of Directors. The last debt refinancing/issuance activity was in 2018. Mr. Koeppen indicated that there is no debt financing anticipated over the next few years. Upon Mr. Koeppen’s confirmation that the reserve levels were examined to ensure the District has adequate funds if inflation continues to rise, Director Keyes supported staff’s recommendation to continue to advance fund PERS. With other utility companies having to raise their rates by 7%-15% due to inflation and other pressures, President Smith discussed the accomplishment of Otay having 3 sound financial management practices that enable the District to estimate a proposed rate increase which is both below current inflation and in-line with the proposed increase last year. Sound financial management practices aid in mitigating the inflationary impacts on our customers. ACTION ITEMS 7. BOARD a) REVIEW THE RESULTS OF THE WATER COST OF SERVICE STUDY AND OBTAIN BOARD DIRECTION TO INCORPORATE THE COST OF SERVICE STUDY RESULTS INTO THE FISCAL YEAR 2023 BUDGET Assistant Chief Financial Officer Kevin Koeppen indicated that Mr. Steve Gagnon, Project Manager, would be presenting the results of the Water Cost of Service Study (COSS) prepared by Raftelis. Please reference Attachment A (Presentation) to the staff report for details of Mr. Gagnon’s presentation. Staff and Mr. Gagnon responded to questions and comments from the board. It was discussed that every suggested change to the rate structure was made to make the rates more legally defensible. Director Keyes echoed that sentiment and noted that once AMI technology is in place, the proposed rates and rate structures can be reevaluated and refined. President Smith commented that the proposed rate structure changes are designed to be in compliance with Proposition 218 and existing legal interpretation. The proposed changes to private fire service, construction, and other classes were reviewed. Director Robak requested additional information to support the changes being recommended. Mr. Koeppen reported that based on recent legal decisions, there is a requirement to examine rates at a more granular level than was understood to be required in past years. General Manager Jose Martinez added that what was considered a reasonable method of calculation as an industry has been recently redefined and, just as in prior years, staff and the consultants are incorporating the current standards and understanding of reasonable cost allocations into the proposed rates and rate structures. President Smith requested clarity on a statement made on slide 9 of Attachment A that indicated that the change in meter equivalency from 5/8” to ¾” would influence rates. Chief Financial Officer Joe Beachem clarified that there is no impact on the rates resulting from the shift from a 5/8” base to a ¾” base. Mr. Gagnon confirmed Mr. Beachem’s clarification was correct and went on to say that any refence to an impact on rates from the changed meter equivalency would be removed from final reports. President Smith noted that the Cost of Service Study report being presented is only a draft report. Rates will not be incorporated into the report until it is finalized. 4 A motion was made by Director Keyes, 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 staff’s recommendation. b) STAFF TO CONDUCT REMOTE TELECONFERENCE MEETINGS OF THE BOARD OF DIRECTORS, INCLUDING COMMITTEE MEETINGS, PURSUANT TO RESOLUTION NO. 4401 WHICH THE BOARD ADOPTED AT A SPECIAL BOARD MEETING ON SEPTEMBER 27, 2021, AND IN ACCORDANCE WITH THE PROVISIONS OF GOVERNMENT CODE §54953(e) FOR THE NEXT 30 DAYS BECAUSE (1) A STATE OF EMERGENCY RELATED TO COVID-19 IS CURRENTLY IN EFFECT; (2) LOCAL OFFICIALS IN SAN DIEGO COUNTY HAVE IMPOSED OR RECOMMENDED MEASURES TO PROMOTE SOCIAL DISTANCING IN CONNECTION WITH COVID-19; AND (3) DUE TO THE COVID-19 EMERGENCY, MEETING IN PERSON WOULD PRESENT IMMINENT RISKS TO THE HEALTH AND SAFETY OF ATTENDEES A motion was made by Director 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 authorize staff to conduct remote teleconference meetings of the board of directors for the next 30 days, including committee meetings, pursuant to Resolution No. 4401 which the Board adopted at a special board meeting on September 17, 2021, and in accordance with the provisions of Government Code §54953(e). RECESS TO CLOSED SESSION 8. CLOSED SESSION The board recessed to closed session at 2:18 p.m. to discuss the following matters: RETURN TO OPEN SESSION 9. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION 5 The board reconvened from closed session at 2:49 p.m. and General Counsel Dan Shinoff reported that the board took no reportable actions in closed session. 10. ADJOURNMENT With no further business to come before the Board, President Smith adjourned the meeting at 2:49 p.m. President ATTEST: District Secretary STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 11, 2022 SUBMITTED BY: Kevin Cameron Senior Civil Engineer PROJECT: P2610-023000 DIV. NO. All APPROVED BY: Bob Kennedy, Engineering Manager Rod Posada, Chief, Engineering Jose Martinez, General Manager SUBJECT: Approve the Purchase of Materials in Support of the Valve Replacement Program for Fiscal Year 2023 GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) approve the purchase of materials in support of the Valve Replacement Program in an amount not-to-exceed $200,000 for Fiscal Year 2023. COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board approval for staff to purchase materials for the Valve Replacement Program in an amount not-to-exceed $200,000 for Fiscal Year 2023. ANALYSIS: The District maintains 726 miles of pipelines on the potable water distribution system and 101 miles on the recycled water system. Having properly functioning appurtenances, such as valves, hydrants, etc., ensures the District can provide safe and reliable service for our customers. One of the ways the District maintains these critical components is through the Valve Exercise program. This program exercises over 3,000 valves per year. If a valve is not functioning AGENDA ITEM 6a 2 properly, it is noted and flagged for replacement. Valves typically have a useful life of 40-50 years. The Valve Replacement Program CIP is used to replace non-functioning isolation valves on the potable water system. The District’s Utility Maintenance staff (UM) uses the information from the Valve Exercise Program to establish areas of the District that have multiple non-functioning valves. UM replaced twenty-nine (29) valves in Fiscal Year 2021, and is working to ramp up this effort to one hundred (100) valves for Fiscal Year 2022. Recent market volatility has caused significant price increases. In addition, a shortage of materials has created long lead times on normally available items. This is due to a number of factors including COVID and other supply chain disruptions. Our suppliers are stating many of the usual “off the shelf” items now have long lead times. A recent quote is shown in Exhibit A. The quote states (highlighted in red) valves have a 3-month lead time, fittings (FCA’s) have a 2-4 week lead time, and the price for PVC pipe is subject to change at the time of the order. In response to the volatility, staff needs to order materials in advance to ensure availability when the next replacement phase begins. UM is also coordinating our work with the County of San Diego (County). On March 28, 2022, the County provided their Road Maintenance List of streets they plan to resurface over the next two fiscal years. Engineering reviews the list and identifies roads within the District. UM then prioritizes any valve replacements to those on the County’s list. If the District replaces valves prior to the County’s repaving, it reduces the road repair required by the District and ultimately saves money. The County has a “no cut” policy for three (3) years on roadways that have recently been resurfaced. As described above, the timeliness of purchasing materials and coordination with the County is key to the success of the Valve Replacement Program. With Board approval, staff will still obtain three (3) quotes for the materials and select the lowest cost unless the quote has unusually long lead times. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The total budget for CIP P2610, as approved in the FY 2022 budget, is $2,000,000. Total expenditures, plus outstanding commitments and forecast through fiscal year 2023, are $1,185,131. See Attachment B for the budget detail. The outstanding and forecasted commitments are within the remaining 2022 and future 2023 annual budget. 3 Based on a review of the financial budget, the Project Manager anticipates that the FY 2023 budget, if approved, for CIP P2610 is 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. GRANTS/LOANS: Engineering staff researched and explored grants and loans and found none available for this Project. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide exceptional water and wastewater service to its customers, and to manage District resources in a transparent and fiscally responsible manner” and the General Manager’s Vision, "To be a model water agency by providing stellar service, achieving measurable results, and continuously improving operational practices." LEGAL IMPACT: None. KC/BK:jf C:\OneDrive\Otay Water District\ENG CIP - Documents\P2610 Valve Replacement Program\Staff Reports\ Approve Purchase of Materials\BD 05-11-2022, Staff Report Approve Purchase for Valve Replacement Program for FY 2023.docx Attachments: Attachment A – Committee Action Attachment B – Budget Detail – P2610 Exhibit A – Ferguson Quote ATTACHMENT A SUBJECT/PROJECT: P2610-023000 Approve the Purchase of Materials in Support of the Valve Replacement Program for Fiscal Year 2023 COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee reviewed this item at a meeting held on April 19, 2022, and the following comments were made: •Staff requests that the committee support the recommendation for staff to purchase materials for the Valve Replacement Program inan amount not-to-exceed $200,000 for Fiscal Year 2023. •Committee appreciated the proactive steps staff is taking topre-purchase materials to potentially obtain lower prices due toinflation. Also, good to note that the Valve Replacement Program is moving faster than anticipated. •In response to a question from the committee regarding thequality of the lower-priced materials, staff uses the Approved Materials List from the Water Agency Standards (WAS) to specifythe valves and other materials purchased. Following the discussion, the Committee supported staffs’ recommendation and presentation to the full board as a Consent Item. ATTACHMENT B – Budget Detail SUBJECT/PROJECT: P2610-023000 Approve the Purchase of Materials in Support of the Valve Replacement Program for Fiscal Year 2023 Date Updated: 3/25/22 Budget 2,000,000 Planning Standard Salaries 14,100 14,100 - 14,100 Regulatory Agency Fees 50 50 - 50 PETTY CASH CUSTODIAN Total Planning 14,150 14,150 - 14,100 Design Standard Salaries 14,551 14,551 - 14,551 Total Design 14,551 14,551 - 14,551 ConstructionStandard Salaries 700,000 542,699 157,301 700,000 Service Contracts 200,000 - 200,000 200,000 MATERIALS FOR FY 202319,055 19,055 - 19,055 CORE & MAIN LP 452 452 - 452 TREBOR SHORING RENTALS 40,046 40,046 - 40,046 KOCH GENERAL ENGINEERING INC 4,467 4,467 - 4,467 FERGUSON ENTERPRISES INC #1083 8 8 - 8 HD SUPPLY CONSTRUCTION AND 213 213 - 213 HILTI INC 212 212 - 212 HUB 54 SAN DIEGO 680 680 - 680 LAKESIDE EQUIPMENT SALES & 6,903 6,903 - 6,903 PACIFIC PIPELINE SUPPLY INC 336 336 - 336 RCP BLOCK & BRICK INC 1,551 1,551 - 1,551 SUPERIOR READY MIX LP 26,690 26,690 - 26,690 FERGUSON WATERWORKS # 1083 2,169 2,169 - 2,169 VULCAN MATERIALS COMPANY 86 86 - 86 DAILY JOURNAL CORPORATION 14,250 - 14,250 14,250 KIRK PAVING INC 1,983 1,983 - 1,983 VULCAN MATERIALS COMPANY 805 805 - 805 UNITIS INC 13,550 13,550 - 13,550 FERGUSON WATERWORKS # 1083 1,909 1,909 - 1,909 SUPERIOR READY MIX LP 4,312 4,312 - 4,312 PACIFIC PIPELINE SUPPLY INC 5,834 5,834 - 5,834 FERGUSON ENTERPRISES INC #1083 1,924 1,924 - 1,924 SUPERIOR READY MIX LP 32,086 2,453 29,633 32,086 PACIFIC PIPELINE SUPPLY INC 3,356 3,356 - 3,356 FERGUSON ENTERPRISES INC #1083 73,553 - 73,553 73,553 FERGUSON ENTERPRISES INC #1083 Total Construction 1,156,430 681,693 474,737 1,156,430 Grand Total 1,185,131 710,394 474,737 1,185,131 Vendor/Comments Otay Water DistrictP2610 - Valve Replacement Program Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost I'FERGUSON'FERGUSON WATERWORKS #1 086 1149 N MARSHALL AVE SUITE B EL CAJON, CA 92020 Phone: 858-391 -3700 Fax: 858-391 -5958 Deliver To: 205356 From: Ali Gastro Slobig lomments: Page 1 of 2'1'1 :09:04 I\AAR 29 2022 WATERWORKS Description NOTE:DUE TO THE VOLATILITY OF THE CURRENT PVC PIPE MARKET, PRICING IS SUBJECT TO CHANGE AT TIME OF ORDER B DI FLG RW OL GATE VLV OP NUT 6 DI FLG RW OL GATE VLV OP NUT 4 DI FLG RW OL GATE VLV OP NUT B" MACRO HP FCA 8.60-9.75 6' MACRO HP FCA 6.60-7.60 4' MACRO HP FCA 4.40-5.60 6-8 N&B KIT A3O7A 3-1l2 BLTS "X 4 PLT FLG N&B SET A3O7 8 NA 1/16 RNG 150# GSKT 6 NA 1/16 RNG I50# GSKT 4 NA 1/16 RNG 150# GSKT 8X2O SDR35 PVC GJ SWR PIPE 6 CgOO DR14 PVC GJ BLUE PIPE 4 CgOO DR14 PVC GJ BLUE PIPE LEAD TIME ON GATE VLV'S MID JUNE, LEAD TIME ON MACRO FCA'S 2.4 WEEKS ARO. BALANCE OF MATERIAL CURRENTLY IN STOCK. ALL LEAD TIMES ARE SUBJECT TO CHANGE AT TIME OF ORDER FERGUSON WAÏERWORKS #1 086 Price Quotation Phone: B58-391-3700 Fax: 858-391 -5958 Cust Phone: Terms: 619-670-2723 NET lOTH PROX Bid No: Bid Date: Quoted By Customer: Cust PO#: Item M4236206E41 3XOL M4236206E41 3UOL MA236206E41 3POL SP.RMACROHPFCAB SP-RMACROHPFCA6 SP.RMACROHPFCA4 T1 LBOX126BW35O PBNSP N15ORG1 16X N1sORG1 16U N1 sORG1 16P SDR35PX2O DRl4BPU DRI4BPP 8422722 03t23t22 ACS OTAY WATER DISTRICT #NAME? 2554 SWEETWATER SPRINGS BL SPRING VALLEY, CA 91978 Ship To: Job Name: GV'S,FCA'S & PIPE Quantity Net Price UM Total 7 39 1 12 49 2 92 2 14 67 2 260 60 20 1163.140 EA 744.320 EA 556.800 EA 506.000 EA 382.500 EA 296.100 EA 9.050 EA 5.990 EA4.900 EA 3.160 EA 1.780 EA10.990 FT 16.340 FT B.1OO FT 8141 .98 29028.48 556.80 6072.00 18742.50 592.20 832.60 11.98 68.60 211 72 3.56 2857.40 980.40 162 00 $68262.22 $5290.34 $0 00 $73552.56 Net Total: Tax: Freight: Total: HOW ARE WE DOING? WE WANT YOUR FEEDBACK! Scan the QR code or use the link below to complete a survey about your bids: https ://survey.medal l¡a.com/?b¡dsorder&fc=l 083&on=38 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 11, 2022 SUBMITTED BY: Charles Mederos, Utility Services Manager PROJECT: P2676 DIV. NO. 1 APPROVED BY: Andrew Jackson, Chief Water Operations Jose Martinez, General Manager SUBJECT: APPROVAL TO INCREASE CIP P2676 BUDGET IN THE AMOUNT OF $350,000.00 AND AWARD A PURCHASE ORDER TO BRAX COMPANY, INC. FOR THE 980-2 PUMP STATION MISCELLANEOUS REPLACEMENTS PROJECT GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board): 1.Increase the overall CIP P2676 budget in the amount of $350,000.00 (from $375,000.00 to $725,000.00); and2. Authorize the General Manager to execute and amend purchaseorders with Brax Company, Inc. (Brax) for the 980-2 Pump Station Miscellaneous Replacements Project in an amount not-to-exceed $230,082.98 (see “Exhibit A” for Project location). COMMITTEE ACTION: See “Attachment A.” PURPOSE: To obtain Board authorization to increase the overall CIP P2676 budget in the amount of $350,000.00 (from $375,000.00 to $725,000.00) and to obtain Board authorization for the General Manager to execute and amend purchase orders with Brax for the 980-2 Pump Station Miscellaneous Replacements Project (Project) in an amount not-to-exceed $230,082.98. AGENDA ITEM 6b ANALYSIS: The District’s 980-2 Pump Station is located at the 624-3 (30 million gallon) Reservoir site in Chula Vista and was built in 2006. The pump station is critical for water distribution and consists of four individual pumps and motors with a rated capacity of pumping up to 4,000 gallons per minute (GPM) each. The pump station’s firm capacity is 12,000 GPM to pump from the 624 Pressure Zone to the 980 Pressure Zone. Prior to the creation of CIP P2676, two of four pump control ball valves were rebuilt, one of four pump control ball valve actuators was replaced, and one of four dismantling joints, adjacent to the ball valves, was replaced. Included in the approved FY 2022 budget, CIP P2676 was created to rebuild the remaining two pump control ball valves and replace the remaining three ball valve actuators, the remaining three dismantling joints, the existing Pump #1 4,160-volt motor, and the existing 4,160-volt circuit breakers. During the first three quarters of FY 2022, the remaining two pump control ball valves were rebuilt and the remaining three ball valve actuators were replaced. The existing Pump #1 4,160-volt motor was rebuilt rather than replaced. Two of four circuit breakers were purchased, and a purchase order was recently issued for the circuit breaker installation. Also, during FY 2022, existing Pump #3 and Pump #4 4,160-volt pump motors failed unexpectedly. An unanticipated purchase order was issued to rebuild motor #3 similar to motor #1. The following table summarizes FY 2022 purchase orders’ amounts and status. FY 2022 Purchase Order Work QTY Average Unit Price Total Status Pump control ball valve rebuild 2 $12,962.14 $25,924.28 All valves have been rebuilt. Ball valve actuators replacement 3 $21,350.06 $64,050.18 All actuators have been replaced. 4,160-volt pump motor rebuild 2 $55,654.50 $111,309.00 Pump #1 motor has been rebuilt and a purchase order has been issued for unanticipated Pump #3 motor rebuild. FY 2022 Purchase Order Work QTY Average Unit Price Total Status Circuit breaker equipment 2 $17,288.49 $34,576.98 Two of four circuit breakers have been purchased. Circuit breaker installation & recondition of existing breakers for future use as spares. 2 $9,850.00 $19,700.00 A purchase order has been issued for the installation of two breakers. Pump #3 Repairs 1 $6,042.93 $6,042.93 Pump #3 repairs are ongoing. Total $261,603.37 Staff solicited quotes via Periscope, the District’s purchasing solicitation system, for the replacement and rebuilding of Pump #4 motor. Two quotes were received as summarized in the table below. Staff recommends replacing Pump #4 motor with a new motor and salvaging the existing Pump #4 motor for future use as a spare. Prices received include all applicable fees, taxes, and installation. Description of Work Brax Company, Inc. Tri County Pump Company Replace existing Pump #4 motor. $148,738.51 $161,529.50 Rebuild existing Pump #4 motor for future use as a spare. $28,996.63 $64,529.50 Total $177,735.14 $226,059.00 Purchase order (PO) #721719 was issued to Brax earlier this year to repair Pump #3 motor for $53,418.00. During removal of the motor, Pump #3’s discharge head and wet end were inspected to find corrosion in the discharge head and worn wet end, including worn bowl bearings, bowl shaft, impellers, and mechanical seal. Brax provided a quote of $52,347.84 to refurbish Pump #3’s discharge head and wet end. In summary, staff recommends awarding a PO to Brax for Pump #4 motor replacement and Pump #4’s existing motor rebuild for future use as a spare for $177,735.14 and amending existing Brax PO #721719 for an additional $52,347.84 for Pump #3’s discharge head and wet end rebuild, for a combined total amount of $230,082.98. An overall increase of $350,000.00 for CIP P2676 budget is needed accounting for the award to Brax in the amount of $230,082.98 as described above, the unanticipated purchase order in the amount of $53,418.00 issued to Brax earlier this fiscal year, adjustments for current pricing, and a $50,000.00 contingency. See “Attachment B” for a reconciliation of the project expenditures and budgeted amounts. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The total budget for CIP P2676, as approved in the FY 2022 budget, is $375,000.00. Total expenditures, plus outstanding commitments and forecast, including this contract, are estimated at $724,068.00. See “Attachment B” for the budget detail. The Project Manager anticipates that with a budget increase of $350,000.00, CIP P2676 will be completed within the new budget amount of $725,000.00. The Finance Department has determined that, under the current model, 100 percent of the funds are available from the Replacement Fund. STRATEGIC GOAL: Operate the system to meet demand twenty-four-hours a day, seven days a week. LEGAL IMPACT: None. Attachments: Attachment A - Committee Action Attachment B – Budget Detail Attachment C - Photos Exhibit A – Project Location Map ATTACHMENT A SUBJECT/PROJECT: APPROVAL TO INCREASE CIP P2676 BUDGET IN THE AMOUNT OF $350,000.00 AND AWARD A PURCHASE ORDER TO BRAX COMPANY, INC. FOR THE 980-2 PUMP STATION MISCELLANEOUS REPLACEMENTS PROJECT COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee reviewed this item at a meeting held on April 19, 2022, and the following comments were made: •Staff requested the Committee’s support to obtain Boardauthorization to increase the overall CIP P2676 budget from$375,000.00 to $725,000.00 and for the General Manager to executeand amend purchase orders with Brax for the 980-2 Pump StationMiscellaneous Replacements Project in an amount not-to-exceed $230,082.98. •In response to a question from the Committee, 980-2 Pump Stationis one of the District’s largest pump stations and the only onesupplied with 4,160 volts. All other sites are 480 volts. •In response to a question from the Committee, the work will be completed by Brax Company Inc. as the lowest and responsiblevendor. •The Committee commented that in discussion with the Communications Officer, it is good to show rate payers the costof doing business by putting in pictures of rusted facilities to support rate increases. This is something to consider includingin the District’s newsletters, since the mechanical equipment canbe shown. The Communications Officer noted that they are working on future campaigns to show these replacements. The difficultpart is that most of these replacements are for equipment that is underground and harder to see the need from rate payers. When putin perspective such as “a leaky pipe under the sink,” then itmakes it understandable to the rate payer for the need to replace the aging infrastructure. Following the discussion, the Committee supported staffs’ recommendation and presentation to the full board as a Consent Item. ATTACHMENT B SUBJECT/PROJECT: APPROVAL TO INCREASE CIP P2676 BUDGET IN THE AMOUNT OF $350,000.00 AND AWARD A PURCHASE ORDER TO BRAX COMPANY, INC. FOR THE 980-2 PUMP STATION MISCELLANEOUS REPLACEMENTS PROJECT ATTACHMENT C SUBJECT/PROJECT: APPROVAL TO INCREASE CIP P2676 BUDGET IN THE AMOUNT OF $350,000.00 AND AWARD A PURCHASE ORDER TO BRAX COMPANY, INC. FOR THE 980-2 PUMP STATION MISCELLANEOUS REPLACEMENTS PROJECT Bottom of Discharge Head Bowl Bearings and Impellers Discharge Column OTAY WATER DISTRICT980-2 PS MISCELLANEOUS REPLACEMENTSLOCATION MAP EXHIBIT AC: \ U s e r s \ d o n a l d . b i e n v e n u e \ O t a y W a t e r D i s t r i c t \ E N G C I P - D o c u m e n t s \ P 2 6 7 6 9 8 0 - 2 P S M i s c R e p l a c e m e n t s \ G r a p h i c s \ E x h i b i t s - F i g u r e s \ E x h i b i t A f o r S t a f f R e p o r t . m x d !\ VICINITY MAP PROJECT SITE DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ÃÅ54 ÃÅ125 ÃÅ94 ÃÅ905 §¨¦805 FNTS CIP P2676F 0 710355 Feet PROJECT SITE OLYMP I C P K W Y OTAY LA K E S R D E A S T L A K E PK W Y SR - 1 2 5 EXHIBIT A STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 11, 2022 SUBMITTED BY: Michael Long Engineering Manager PROJECT: ANX-21-004 DIV. NO. 1 APPROVED BY: Rod Posada, Chief, Engineering Jose Martinez, General Manager SUBJECT: Village 3 West R-20 Water Annexation, 0 Heritage Road, Chula Vista, CA 91913, APN: 644-060-13-00 to the Otay Water District and to Water Improvement District ID No. 22/27 GENERAL MANAGER’S RECOMMENDATION: Adopt Resolution No. 4408, the annexation of the property of Village 3 West R-20 Water Annexation, 0 Heritage Road, Chula Vista, CA 91913, APN: 644-060-13-00 to the Otay Water District and to Water Improvement District ID No. 22/27 (see Attachment B). COMMITTEE ACTION: Please see Attachment A. PURPOSE: The purpose of the proposed annexation of the property, owned by Flat Rock Land Company LLC (“Property Owner”), located at 0 Heritage Road, Chula Vista, CA 91913, APN: 644-060-13-00 to the Otay Water District and to Water Improvement District ID No. 22/27 is to make water service available to the parcel owned by the Property Owner. ANALYSIS: A written request and Petition signed by the Property Owner representative has been received for annexation of APN 644-060-13-00 into Improvement District No. 22/27 for water service. The total acreage to be annexed is 53.917 acres. The parcel is currently within the District's sphere of influence of the District’s Water Improvement District No. 22/27, as shown in Exhibit A. Therefore, annexation of this property to the District, and to Improvement District No. 22/27 is required for water service. AGENDA ITEM 6c The property currently receives no water service and the District’s water facilities are located adjacent to the property. This annexation will not create an island. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The property owner has paid the District’s annexation processing fee of $898.01 and the water annexation fee of $2,311.35 for a total of $3,209.36 deposited into account D1119-090526 for the sewer service is provided, and any additional fees, including the water capacity fee, as established in the attached Resolution No. 4408. 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. MJL/RP:jf Https://otaywater365.sharepoint.com/sites/engpublicservices/Shared Documents/SAMP WSA ANX/D1119-090526 Water Annexation Village 3 West R-20/Staff Report/BD 05-11-2022 Water Annexation Village 3 West R-20 Staff Report.docx Attachments: Attachment A - Committee Action Attachment B - Resolution No. 4408 Exhibit A - Legal Description Exhibit B - Legal Map Exhibit C – Grant Deed Exhibit D – Location Map ATTACHMENT A SUBJECT/PROJECT: ANX-21-004 Village 3 West R-20 Water Annexation, 0 Heritage Road, Chula Vista, CA 91913, APN: 644-060-13-00 to the Otay Water District and to Water Improvement District ID No. 22/27 COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee reviewed this item at a meeting held on April 19, 2022, and the following comments were made: • Staff is requesting the Committee’s support to obtain Board authorization adopt Resolution No. 4408, the annexation of the property of Village 3 West R-20 Water Annexation, Heritage Road, Chula Vista, CA 91913, APN: 644-060-13-00 to the Otay Water District and to Water Improvement District ID No. 22/27. • In response to a question by the Committee, since the time of project approvals in 2016, HomeFed Village 3 Master, LLC has made additional revisions to the Village 3 SPA land use plans that include transferring development units from Village 9 to Village 3 and expanding the boundary of the Village 3 SPA plan boundary to include the FlatRock property. • Staff indicated that this property owner has worked (in the past) with the adjacent Vulcan Properties to ensure this water service annexation is accomplished to avoid the creation of a service island, as Vulcan will be annexing two additional adjacent parcels into the same water Improvement District in the future. • In response to a comment from the Committee regarding the concern of more water use with more units, staff noted with the newer development and the smaller footprint, they are actually using less water than originally proposed. Following the discussion, the Committee supported staffs’ recommendation and presentation to the full board as a Consent Item. ATTACHMENT B Page 1 of 4 RESOLUTION NO. 4408 A RESOLUTION OF THE BOARD OF DIRECTORS OF OTAY WATER DISTRICT APPROVING THE ANNEXATION TO OTAY WATER DISTRICT WATER IMPROVEMENT DISTRICT NO. 22/27 OF THOSE LANDS DESCRIBED AS “VILLAGE 3 WEST R-20 WATER ANNEXATION (APN: 644-060-13-00)” (FILE NO. ANX 21-004/DIVISION 1) WHEREAS, a letter has been submitted by Flat Rock Land Company, LLC, the owner and party that has an interest in the land described in Exhibit "A," attached hereto, for annexation of said land to Otay Water District Water Improvement District No. 22/27 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 22/27 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 water 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 22/27 will be benefited by such annexation and that the property currently within ID 22/27 will also be ATTACHMENT B Page 2 of 4 benefited and not injured by such annexation because after the annexation a larger tax base will be available to finance the water facilities and improvements of ID 22/27. 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 and water annexation fee at the time of application; (2) State Board of Equalization filing fees in the amount of $1,500 (Requirements & Fees – Boundary Change, August 1, 2005); (3) The OWD capacity fees at the time of connection to the Otay Water District water system; (4) Any annual assessment fees collected through the County Tax Assessor’s for APN 644-060- 13-00; (5) In the event that water service is to be provided, Petitioners shall pay all applicable water fees per Equipment Dwelling Unit (EDU) at the time the water connection is purchased; and (6) Payment by the owner of APN 644-060-13-00 of all other applicable local or state agency fees or charges. ATTACHMENT B Page 3 of 4 (b) The property to be annexed shall be subject to taxation after annexation thereof for the 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" and depicted in Exhibit “B” shall be considered annexed to ID 22/27 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 644-060-13-00 to the District’s Water Improvement District 22/27 is hereby designated as the “VILLAGE 3 WEST R-20 WATER ANNEXATION (APN: 644-060-13-00)”. 8. Pursuant to Section 57202(a) of the Government Code, the effective date of the “VILLAGE 3 WEST R-20 WATER ANNEXATION (APN: 644-060-13-00)” 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 11th day of May, 2022. President ATTEST: __________________________________ District Secretary EXHIBIT "A" ANNEXATION TO OTAY IMPROVEMENT DISTRICT NO. 22-27 GEOGRAPHIC DESCRIPTION APN 644-060-13 THAT CERTAIN REAL PROPERTY, BEING A PORTION OF LOT 44 OF MAP NO. 862, SITUATED IN THE OTAY RANCHO, CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE CENTERLINE OF MAIN STREET, A 124.00 FOOT WIDE PUBLIC ROAD, AND THE EASTERLY LINE OF SAID LOT 44, SAID INTERSECTION ALSO BEING THE NORTHEASTERLY CORNER OF SAID LOT 44 AND A POINT ON THE OTAY WATER DISTRICT IMPROVEMENT DISTRICT NO. 22- 27 BOUNDARY; THENCE, ALONG SAID EAST LINE AND EXISTING DISTRICT BOUNDARY, (1) SOUTH 18°37'5911 EAST, 1868.23 FEET; THENCE, LEAVING SAID EAST LINE AND EXISTING DICTRICT BOUNDARY, (2) NORTH 75°14'29" WEST, 1093.14 FEET; THENCE, (3) NORTH 66°35'04" WEST, 1928.12 FEET TO SAID EXISTING DISTRICT BOUNDARY AND NORTH LINE OF SAID LOT 44; THENCE, ALONG SAID NORTH LINE AND EXISTING DISTRICT BOUNDARY, (4) NORTH 71°58'2011 EAST, 2344.60 FEET; TO THE POINT OF BEGINNING. CONTAINING, 53.917 ACRES, MORE OR LESS. DISCLAIMER: FOR ASSESSMENT PURPOSES ONLY. THIS DESCRIPTION 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. DOUGLAS B. TROU P. L.S. 8553 HUNSAKER & ASSOCIATES SAN DIEGO, INC. M:\2395\060\Legal Description\ A0l V3 R-6 R-20 Otay Water -Annexation.docx CITY OF CHULA VISTA VICINITY MAP NOT TO SCALE PORTION OF MAIN STRffT OED/CA TED NOV. � 18, 2016 AS DOCUMENT NO. 2016-0631466, O.R. APN: 644-060-13 44 OTJ.\ Y RANCHO MAP NO. 862 PARCEL A' LU-\ 2004-J 1 S97LJ2 SHEET 1 OF 1 SHEETS r' 0 PROPOSED OTAY WATER 0/STRTICT BOUNDARY £AST LINE LOT 44 -- 0 0 0 0 S18°37'59"E 1868.23' N75°14'29"W 1093.14' N66°35'04"W 1928. 12' N71 °58'20"E 2344. 60' .. N L)LJOTAY RANUJO !'v!AP NO. 882 DISCLAIMER: 800 1200 .___ __ \ __ _____, SCALE 1" =400' "FOR ASSESSMENT PURPOSES ONLY. THE DESCRIPTION LAND IS NOT A LEGAL PROPERTY DESCRIPTION AS DfflNED IN THE SUBDMSION MAP ACT AND MAY NOT BE USED AS THE BASIS FOR AN OFFER FOR SALE OF THE LAND DESCRIBED.• / 22-27 EXISTING OTAY WATER DISTRICT BOUNDARY (22-27) PROPOSED OTAY WATER DISTRICT BOUNDARY (22-27) EXISTING PARCELS ASSESSOR'S PARCEL NUMBERS: LAFCO RfSOLUTTON ACRfAGE DA Tt: SCAl£: 644-060-13 NO. N/A 5J.917 11/18/2021 1"=40(1 OTAY WATER DISTRICT ANNE:XATTON IMPROVEMENT DISTRICT 22/27 8f/NG A PORTION OF LOT # OTAY RANC/i WP NO. 862 1IIE CfrY OF CHI/IA YISTA, � IN 1H£ COUWTY OF � DIEGO, � ■ HUNSAKER & ASSOC/A 'IF.S SAN DIEGO, INC. PLANNING -ENGINffRING -SURVEYING 9707 WAPLES STREET, SAN DIEGO, CA 92121 (858) 558-4500 -FAX (858) 558-1414 EXHIBIT B Recording Requested by and Please Return to: City Clerk City of Chula Vista P.O. Box 1087 Chula Vista, California 91912 [X] This document benefitspermittee. Recording fee required. APN 644-060-11 645-030-18 10534 DOC# 2004-1159742 11111111 1111111111111111111111111111111111 llllr 111111111111111 /Ill llll DEC 09, 2004 12:02 PM OFFICIAL RECORDS SAN DIEGO COUNTY RECORDER'S OFFICEGREGORY J. SMITH, COUNTY RECORDERFEES: 32.00 DC: NA PAGES: 9 110111 HIii DIii 011111111 DIii DIii DIii om Dill DIii 0111 DIii DIii H!I IDI .. This Space for Recorder's Use Unly • GRANT DEED 2004-11597 42 C.V. File No. ER-340 (This Deed being filed for Lot Line Adjustment puTposes only), FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, Flat Rock Land Company, LLC, A Delaware Limited Liability Company, hereby grants to Flat Rock Land Company, LLC, A Delaware Limited Liability Company, the following real property situated in the City of Chula Vista, County of San Diego, State of California and more particularly described as follows: See Exhibits "A" -Legal Descriptions and "B" -Plat, Attached Hereto and Made a Part Hereof Signed this 2 3 "-� Grantor Signatures: (Notary Acknowledgment Required for Each Signatory) J:\Engineer\PERMJTS\Er\ER340GrantDeed.doc Order: 121773 Page 1 of 9 Requested By: ehaug, Printed: 12/9/2019 12:06 PM EXHIBIT C Order: 121773 10535 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State o1 Callromla County of � iJ&o On N�r:c25@>{ootoreme, riano .st Htcre 0.... / N) n I/' Nome &r<l'l'clo ol Cl'- (e.�. 'J&M Oot. Nclafy I'\,� personally appeared ..... e tt t..v. c � e,Ol}OOCNana,(!) al &lgnmla) 0 personally known to me D proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within Instrument and acknowledged lo me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the Instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. ------------OPTIONAL------------ Though the informal.Ion below /11 not roqulred by law, II may PrrJIIB vs/uab/9 to ptl($(XIS rBly{ng on lhfl docwnsnl BIid COUid Pf'IWHl1 fraudutoot removal and reartachment of /his form ta BJ10!htJr dowment. Description of Attached Document Title or Type of Document: _______________________ _ Document Date: _________________ Number of Pages: ___ _ Signer(s) Other Than Named Above: ____________________ _ Capaclty(les) Clelmed by Signer Signer's Name: _____________________ _ D lndivldual Top o/ ltura hare □ Corporate Officer -lille(s): ________________ _D Partner -□ Limited O GeneralD Attorney-in-Fact □Trustee0 Guardian or Conservator□ Other: _______________________ _ Signer Is Representing:, ___________________ _ Prod. No. 5907 Page 2 of 9 Requested By: ehaug, Printed: 12/9/2019 12:06 PM Order: 121773 EXBIBIT"A" LEGAL DESCRIPTION PARCEL"A" ·10538 BEING A PORTION OF LOT 44 IN THE OTAY RANCHO IN THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, AS SHOWN ON MAP NO. 862 Fll.,ED FEBRUARY 7, 1900 IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTIIEASTERLY CORNER OF SAID LOT 44; TIIENCE ALONG THE EASTERLY LINE OF SAID LOT 44, SOUTH 18°37'56" EAST, A DISTANCE OF 1868.17 FEET; THENCE LEAVING SAID EASTERLY LINE, NORTH 75°14'35" WEST, A DISTANCE OF 1093.04 FEET; THENCE NORTH 66°35'10" WEST, A DISTANCE OF 1928.12 FEET TO THE NORTHERLY LINE OF SAID LOT 44; THENCE ALONG SAID NORTHERLY LINE, NORTH 71 °58'1411 EAST, A DISTANCE OF 2344.60 FEET TO THE POINT OF BEGINNING. CONTAINING 53.92 ACRES, MORE OR LESS. . oepke 1 Lie. Expires 12-31-2006 Page 1 of 1 C:\Documents and Scttings\benh\Local Settings\Temp(?rary,�temet Filcs\OLKI\PARCEL A .doc Page 3 of 9 Requested By: ehaug, Printed: 12/9/2019 12:06 PM Order: 121773 EXHIBIT"A" LEGAL DESCRIPTION PARCEL"B" 1053'7 BEING PORTIONS OF LOTS 44 AND 45 IN THE OTAY RANCHO IN THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFO� AS SHOWN ON MAP NO. 862 FILED FEBRUARY 7, 1900 IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTIIEASTERL Y CORNER OF SAID LOT 44� THENCE ALONG THE NORTHERLY LINE OF SAID LOT 44, SOUTH 71 °58'14° WEST, A DISTANCE OF 2344.60 FEET TO THE POINT OF BEGINNING OF TIIIS DESCRIPTION; THENCE LEAVlNG SAID NORTHERLY LINE, SOUTH 66°35'10" EAST, A DISTANCE OF 1928.12 FEET; THENCE SOUTH 75°14'35" EAST, A DISTANCE OF 1093.04 FEET TO THE EASTERLY LINE OF SAID LOT 44; THENCE ALONG SAID EASTERLY LINE OF LOT 44 AND LOT 45, SOUTH 18°37'56" EAST, A DISTANCE OF 2558.09 FEET TO THE NORTHERLY LINE OF THE OTAY CORONADO PIPELINE BEING 100.00 FEET IN WIDIB, AS DESCRIBED IN EXHIBIT "An OF THAT CERTAIN DEED AND AGREEMENT DATED APRIL 11, 1912, BETWEEN SOUTHERN CALIFORNIA MOUNTAIN WATER CO1\1PANY, A CORPORATION AND SAN DIEGO LAND COMPANY, A CORPORATION BEJNG FILED IN BOOK 570, PAGE 113 OF DEEDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID SAN DIEGO COUNTY, JUNE 24, 1912; THENCE CONTINUING ALONG SA.ID EASTERLY LINE OF LOT 45, SOUTH 18°37'56" EAST, A DISTANCE OF 100.02 FEET TO THE SOUTHERLY LINE OF SAID OT A Y-CORONADO PIPELINE; THENCE CONTINUING ALONG THE EASTERLY LINE OF SAID LOT 45, SOUTH 18°3715611 EAST, A DISTANCE OF 1113.25 FEET TO THE SOUTIIEASTERLY CORNER OF SAID LOT 45; THENCE ALONG THE SOUTHERLY LINE OF SAID LOT 45, SOUTH 71 °22'55" WEST, A DISTANCE OF 662.71 FEET TO THE EASTERLY LINE OF THE WESTERLY THREE.QUARTERS OF THE SOUTH HALF OF SAID LOT 45; Page 1 ofS 0:\160136.00\Dwg\Maps\LLA \LEOALS\P ARCEL B .OPTION B.doc Page 4 of 9 Requested By: ehaug, Printed: 12/9/2019 12:06 PM Order: 121773 THENCE ALONG SAID EASTERLY LINE, NORTH 18°37'46" WEST, A DISTANCE OF 1503.31 FEET TO THE NORTHERLY LINE OF THE SOUTH HALF OF SAID LOT45; THENCE ALONG SAID NORTHERLY Lll'IB, SOUTH 71 °40'43" WEST, A DISTANCE OF 1978.91 FEET TO THE WESTERLY LINE OF SAID LOT 45; THENCE ALONG THE WESTERLY LINE OF SAID LOT 45, NORTH 18°37'16" WEST, A DISTANCE OF 785.49 FEET TO THE SOUTHERLY LINE OF SAID OTAY-CORONADO PIPE LINE; THENCE CONTINUING ALONG THE WESTERLY LINE OF SAID LOT 45 TO THE NORTHERLY LINE OF SAID OTA Y-CORONADO PIPE LINE, NORTH 18°37'16" WEST, A DISTANCE OF 106.05 FEET; THENCE CONTINUING ALONG THE WESTERLY LINE OF SAID LOT 4S AND SAID LOT 44, NORTH 18°37'16" WEST, A DISTANCE OF 3261.56 FEET TO THE NORTHWEST CORNER OF SAID LOT 44; THENCE ALONG THE NORTHERLY LINE OF SAID LOT 44, NORTH 71 °58'14" EAST, A DISTANCE OF 296.26 FEET TO THE POINT OF BEGINNING. CONTAINING 220.33 ACRES, MORE OR LESS. EXCEPTING THEREFROM THAT PORTION OF LOT 45 IN THE OTA Y RANCHO IN THE CITY OF CHULA VISTA. COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, AS SHOWN ON MAP NO. 862 FILED FEBRUARY 7, 1900 IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHEASTERLY CORNER OF SAID LOT 45; THENCE ALONG THE EASTERLY LINE OF SAID LOT 45, NORTH 18 °37'56,, WEST, A DISTANCE OF 1113.25 FEET TO THE SOUTHERLY LINE OF SAID OTAY-CORONADO PIPE LINE AND THE POINT OF BEGINNING OF nnsDESCRIPTION; THENCE LEAVING SAID EASTERLY LINE AND ALONG THE SOUTHERLY LINE OF SAID OTAY-CORONADO PIPE LINE, SOUTH 72°23'3311 WEST, A DISTANCE OF 38.95 FEET TO THE BEGINNING OF A NON-TANGENT CURVE CONCA VE NORTHERLY AND HA VINO A RADIUS OF 366.58 FEET, A LINE RADIAL TO SAID CURVE AT SAID POINT BEARS NORTH 17°36'20" WEST; Page 2 of5 O:\160136.00\Dwg\Maps\LLA\LEGALS\PARCEL B-OPTION B.doc Page 5 of 9 Requested By: ehaug, Printed: 12/9/2019 12:06 PM \ Order: 121773 .. ·10539 THENCE ALONG THE ARC OF SAID CURVE, AN ARC DISTANCE OF 197.26 FEET THROUGH A CENTRAL ANGLE OF 30°49'55", A LINE RADIAL TO SAID CURVE AT SAID POINT BEARS SOUTH 13°13'35" WEST; THENCE NORTii 76°46'03" WEST, A DISTANCE OF 447.00 FEET TO THE BEGINNING OF A TANGENT CURVE CONCA VE NORTHERLY AND HAVING A RADIUS OF 366.48 FEET, A LINE RADIAL TO SAID CURVE AT SAID POINT BEARS NORTH 13°13'57" EAST; THENCE ALONG THE ARC OF SAID CURVE, AN ARC DISTANCE OF 63.96 FEET THROUGH A CENTRAL ANGLE OF 10°00'01", A LINE RADIAL TO SAID CURVE AT SAID POINT BEARS SOUTH 23°13'58" WEST; THENCE NORTH 66°46'02" WEST, A DISTANCE OF 8.10 FEET TO THE EASTERLY LINE OF THE WESTERLY THREE-QUARTERS OF THE SOUTH HALF OF SAID LOT 45; THENCE ALONG THE EASTERLY LINE OF THE WESTERLY THREE­QUARTERS OF THE SOUTH HALF OF SAID LOT 45, NORTH 18°37'46" WEST 54.65 FEET TO THE NORTHERLY LINE OF THE WESTERLY THREE-QUARTERS OF THE SOUTH HALF OF SAID LOT 45; THENCE ALONG THE NORTHERLY LINE OF THE WESTERLY THREE­QUARTERS OF THE SOUTH HALF OF SAID LOT 451 NORTH 71 °40'43" EAST 80. 77 FEET TO A POINT ON THE SOUTHERL y. LINE OF SAID OT A Y -CORONADO PIPELINE, SAID POINT ALSO BEING A POINT ON A NON­TANGENT CURVE CONCA VE SOUTHERLY AND HAVING A RADIUS OF 206.48FEET, A LINE RADIAL TO SAID CURVE AT SAID POINT BEARS SOUTH02°4o•os" WEST; THENCE ALONG THE ARC OF SAID CURVE, AN ARC DISTANCE OF 1.57 FEET THROUGH A CENTRAL ANGLE OF 0°26110,,, A LINE RADIAL TO SAID CURVE AT SAID POINT BEARS SOUTH 02°13'58,, WEST; THENCE ALONG THE SOUTHERLY LINE OF SAID OTAY-CORONADO PIPELINE, NORTH 87°46'02" WEST, A DISTANCE OF 145.30 FEET; THENCE NORTH 83°28'02" WEST, A DISTANCE OF 93.65 FEET; THENCE NORTH 67°28'02" WEST, A DISTANCE OF 339.44 FEET TO THE BEGINNING OF A TANGENT-CURVE CONCA VE SOUTHERLY AND HA YING A RADIUS OF 206.48 FEET, A LINE RADIAL TO SAID CURVE AT SAID POINT BEARS SOUTH 22°31'58" WEST; Page 3 of 5 O:\160136.00\Dwg\Maps\LLA\LEGALS\PARCEL B �OPTION B.doc Page 6 of 9 Requested By: ehaug, Printed: 12/9/2019 12:06 PM Order: 121773 ..·10540 THENCE ALONG THE ARC OF SAID CURVE, AN ARC DISTANCE OF 89.01 FEET THROUGH A CENTRAL ANGLE OF 24°42'00", A LINE RADIAL TO SAID CURVE AT SAID POINT BEARS NORTH 02°10'02" WEST; TIIBNCE SOUTH 87°49'58" WEST, A DISTANCE OF 667.04 FEET; TIIENCE NORTH 89°10'02" WEST, A DISTANCE OF 745.98 FEET TO THE WESTERLY LINE OF SAID LOT 45; THENCE ALONG THE WESTERLY LINE OF SAID LOT 45, NORTH 18°37'16" WEST, A DISTANCE OF 106.05 FEET TO THE NORTHERLY LINE OF SAID OTA Y ·CORONADO PIPE LINE; THENCE ALONG THE NORTHERLY LINE OF SAID OTA Y ·CORONADO PIPE LINE, SOUTH 89°10'02" EAST, A DISTANCE OF 781.30FEET; THENCE CONTINUING ALONG SAID LINE, SOUTH 87°49'15" EAST, A DISTANCE OF 661.81 FEET TO THE BEGINNING OF A NON-TANGENT CURVE CONCA VE SOUTHERLY AND HA YING A RADIUS OF 306.48 FEET, A LINE RADIAL TO SAID CURVE AT SAID POINT BEARS SOUTH 02°10'02" EAST; THENCE ALONG THE ARC OF SAID CURVE, AN ARC DISTANCE OF 132.12 FEET THROUGH A CENTRAL ANGLE OF 24°42'00", A LINE RADIAL TO SAID CURVE AT SAID POINT BEARS NORTH 22°31 '58" EAST; THENCE SOUTH 67°28'02" EAST, A DISTANCE OF 325.39 FEET; TIIBNCE SOUTH 83°28'02" EAST, A DISTANCE OF 75.84 FEET; THENCE SOUTH 87°46'02" EAST, A DISTANCE OF 141.55 FEET TO THE BEGINNING OF AT ANGENT CURVE CONCA VE SOUTHERLY AND HAVING A RADIUS OF 306.48 FEET, A LINE RADIAL TO SAID CUR VE AT SAID POINT BEARS SOUTH 02°13'5811 WEST; THENCE ALONG THE ARC OF SAID CURVE, AN ARC DISTANCE OF 80.24 FEET THROUGH A CENTRAL ANGLE OF 15°00' 00", A LINE RADIAL TO SAID CURVE AT SAID POINT BEARS NORTii 17°13'5811 EAST; THENCE SOUTH 72°46'02" EAST, A DISTANCE OF 13.35 FEET; THENCE SOUTH 66°46'02" EAST, A DISTANCE OF 51.25 FEET TO THE BEGINNlNG OF A TANGENT CURVE CONCAVE NORTHERLY AND HA YING A RADIUS OF 266.48 FEET, A LINE RADIAL TO SAID CURVE AT SAID POINT BEARS NORTH 23°13'58" EAST; Page4 of5 O:\160136.00\0wg\Maps\LLA\LEGALS\PARCBL B -OPTION B.doc Page 7 of 9 Requested By: ehaug, Printed: 12/9/2019 12:06 PM Order: 121773 Page S ofS 0:\160136.00\Dwg\Maps\LLA \LEGALS\P ARCEL B .OPTION B.doc Page 8 of 9 Requested By: ehaug, Printed: 12/9/2019 12:06 PM ( ) CURVE TABJI NO. OEl.rA RADIUS J..£NGTH Ct 2f"42'0<r .J06.48' 1J2.12' C2 2,r42•ad' 206.48' 89.01'CJ 15'0()'(](1" XJB.48' 80.24' C4 15'00 •()ff" 208.48' 5-f.06' C5 1(f()()'Ot• J66.48' 6J.96' C6 1ur• u, •266.48' 46.51' Cl .JU4g•44• 266.58' 14J.44' C8 .J(J' 49'559 .J66.58' 197.26' C9 f1"),:. 1 rl' 206.48' 1.57' NO. DISr. L1 106.05' l2 1,./H. L.J 9.J.65' u 141.55' L5 145 . .JO' l6 1J.J5' L7 51.25' 8.11' L9 �.01' uo 447.00' Ltt 447,00' L12 J7.T6' U.1 .JB.95' Ll4 100.02' L15 8.10' L18 !54.6:S' U7 so.n· LEGEND RECORD a4TA PER ROS 16504 DUSTIN� LOT UNE � �� � �� 296.26' � � 2640.86') 2344.60' ...... ...., .,... __ P.0.8. PARCD. •tr 44 OTAY RANCHO PARCEL "B" 21 J. 6J ACRE'S ::t PARCEL "A11 53.92 ACRES :t ---a'JS17NGLOTUNl OTAY-CORONMXJ Pf Pe UNE PL.OnFD PtR CITY OF SAN DfEGO RECORD OF SURVfY R£CORDATION PENDING 6. 70 ACRES :r (N71'4D'd£ 1978.911 �! � �II L 45 OTAY RANCHO NORTH!Rt.Y UNE OF THE SOIJTH 1/2 OF LOT 45 E:ASTmLY UN€ OF THE----• WESTFRLY J/.f OF TH£ SO/lfH 1/2 OF LOT 4' (1979. fO') -----(N71"22'SS-c 264t.Bt1 SCALE: 1• = 600' P.O.C. EXCEPTTON •,1,• 01\ 013 ,00\ wg\Hops\LLA\ Sep 27, 200'4 - 1•23pr, Order: 121773 ON 8 8><11.D'JG SCALE: r• • 600' EXHIBITB LOT LINE ADJUSTMENT PlA T Page 9 of 9 Requested By: ehaug, Printed: 12/9/2019 12:06 PM OTAY WATER DISTRICTANNEXATION OF APN 644-060-13-00 TO THEOTAY WATER DISTRICT AND TO WATER IMPROVEMENT DISTRICT 22/27 EXHIBIT DC:\Users\donald.bienvenue\Otay Water District\ENG PUBLIC SERVICES - Documents\SAMP WSA ANX\D1119-090526 Water Annexation Village 3 West R-20\ANX-21-004.mxd ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! !! ! ! ! ! ! ! ! !!! ! ! ! ! ! !!!!!!!! ! ! !!!!! ! !!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! !!! ! ! !!! !!!!!! ! !!!! !!! ! !!!! !!! !!! ! !!! !!!!!!! !!!! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! !!! ! ! ! !! ! !!! !!! ! ! ! ! ! !! ! !!! !!! !!!!!!!!! ! ! ! ! ! ! !! ! !!!!!! ! !! ! !! ! !!!!!!! !! !! !! ! ! !! !! ! !! !! ! ! ! ! !! ! ! ! ! !!!!! ! !!! !!!!!!! ! !! ! !!! ! ! !!!!! ! ! ! ! ! ! ! !! ! ! ! !!! ! ! ! ! ! !! ! ! ! !!! ! ! !! !! ! ! ! !! ! !!! ! !! !!!!! !! !! !!! !! !!!!!!! !! ! !! !!! !!! !!!!! !!! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! !!! ! ! !! !!! !!!! !!! !! ! ! ! !! !!! ! !!!!! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! !!!! ! !!! !!!! ! !! ! !!! !! ! !!!!!! ! ! ! ! !! !!! ! ! ! ! !! !!!! !!! !!!!! ! ! !!!!!!! ! !! ! ! ! !!! !!! ! ! ! !!!!! ! !!!! ! ! ! ! ! !! ! ! ! ! ! ! ! !!!!!! !!!!! ! ! !!!! ! !! ! ! ! !! ! ! ! !!!!!! ! ! ! ! !! !!! !! ! ! ! !!!!!!!! ! ! ! ! ! ! ! !! ! ! ! !!! !!! !! ! ! !!!! ! !! ! ! ! ! ! !! ! ! ! ! ! !!!!!! ! ! ! !! !! ! !! ! !!!! ! ! ! ! ! !!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! !\ VICINITY MAP PROJECT SITE DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ÃÅ54 ÃÅ125 ÃÅ94 ÃÅ905 §¨¦805 FNTS ANX-21-004F 0 810405 Feet H E R I T A G E R D HARD ROCK RD DISTRICTWATER VILLAGE 3 WEST R-20 MAIN ST STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 11, 2022 SUBMITTED BY: Michael Long Engineering Manager PROJECT: P2040-001103 DIV. NO. 5 APPROVED BY: Rod Posada, Chief, Engineering Jose Martinez, General Manager SUBJECT: Award of a Professional Engineering Services Contract for Construction Management and Inspection Support of the 1655-1 Reservoir (0.5 MG) Construction and Rancho Jamul Hydropneumatic Pump Station Modification project to Michael Baker International GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) award a professional services contract to Michael Baker International (MBI) and authorize the General Manager to execute an agreement with MBI for Construction Management and Inspection Support of the 1655-1 0.5 MG Reservoir Construction and Rancho Jamul Hydropneumatic Pump Station (RJ–HPS) Modification project (Project) in an amount not-to-exceed $762,496 (see Exhibit A for Project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to enter into a professional engineering services contract with MBI for Construction Management and Inspection Support of the Project in an amount not-to- exceed $762,496. AGENDA ITEM 6d 2 ANALYSIS: The Project includes construction of a new 0.5 MG reservoir and approximately 1500-feet of 12-inch pipeline on Presilla Drive, as well as, modifications to the RJ-HPS to serve the Rancho Jamul Estates Unit No. 2 development in the 1655 pressure zone within Improvement District 9 per the June 17, 1992 agreement of understanding between the Otay Water District and the Rancho Jamul Estates. The District has secured Richard Brady & Associates, Inc. to provide a range of professional engineering services, including prestressed concrete tank and water storage tank design, hydraulic and surge modeling, potholing, ground survey, demolition, grading & drainage, structural, mechanical, HVAC, electrical, instrumentation & control, process, Cathodic protection, coatings, and prepare plans and specifications required to move the Project to construction. The District also requires the services of a construction management and inspection firm for the Project to provide pre-construction services, including value engineering and constructability reviews, construction management, resident engineering, and inspection services including construction contract administration, and project start-up/commissioning for the delivery of the Project. In accordance with the Board of Directors Policy Number 21, the District initiated the consultant selection process on January 24, 2022, by placing an advertisement in the San Diego Daily Transcript, and posting the Project on the District’s website for Professional Engineering Services. The advertisements and Pre-Proposal Meeting, held on February 3, 2022, attracted Letters of Interest and Statements of Qualifications from three (3) consulting firms. On March 11, 2022, proposals were received from the following three (3) consulting firms: 1. W. M. Lyles, Temecula, CA. 2. Michael Baker International (MBI), San Diego, CA. 3. Valley Construction Management, Sn Diego, CA. Among the potential firms that attended the Pre-Proposal Meeting, but did not propose, were Butier Construction Managers, NV5, MTGL, Inc., Ardurra Group, and Capo Projects Group. After the written proposals were evaluated and ranked by a five-member review panel consisting of District Engineering, Operations, and Administration/IT staff, it was determined that the three (3) proposals ranked sufficiently to warrant each of them securing an 3 invitation to make an oral presentation and respond to questions from the panel. After conducting the interviews on March 24, 2022, the panel completed the consultant ranking process and concluded that MBI had the best approach to the Project and provided the best overall value to the District. A summary of the complete evaluation is shown in Exhibit B. Scope and fee negotiations with MBI concluded on April 5, 2022, which resulted in the addition of scope to incorporate the potential of upgrade to the Hydropneumatic Pump Station and the development of a commissioning plan in the Project specifications for bidding purposes. The negotiations resulted in an increase to the original proposed fee submitted for the Project. MBI’s proposed fee including the additional scope described above is $762,496. MBI submitted the Company Background Questionnaire as required by the RFP and staff did not find any significant issues. In addition, staff checked their references and performed an internet search on the company. Staff found the references to be excellent and did not find any outstanding issues with the internet search. The District has experience with MBI in the construction of large water facilities, including, but not limited to, the 870-2 Pump Station project, the Lower Otay Reservoir Pump Station Redundancy project, and the 680-1 Recycled Water Reservoir/944-1 Recycled Water Pump Station in the City of Chula Vista. The District has found MBI’s work in support of construction to be excellent. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The Fiscal Year 2022 budget for CIP P2040 is $5,750,000. Total expenditures, plus outstanding commitments and forecast, including this contract, are $1,911,653.42. See Attachment B for budget detail. Based on a review of the financial budget, the Project Manager anticipates that the budget for CIP P2040 is sufficient to support the Project. The Finance Department has determined that, under the current rate model for CIP P2040, 31% of the funding is available from the Expansion Fund and 69% of the funding is available from the Betterment Fund. GRANTS/LOANS: Engineering staff researched and explored grants and loans and found none available for this Project. 4 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. MJL/RP:jf Https://otaywater365.sharepoint.com/sites/engcip/Shared Documents/P2040 1655-1 Reservoir 0.5 MG/Staff Reports/CM VE CI/BD 05-11-2022 1655-1 CM and Inspection.docx Attachments: Attachment A – Committee Action Attachment B – Budget Detail Exhibit A – Location Map Exhibit B – Summary of Proposal Rankings ATTACHMENT A SUBJECT/PROJECT: P2040-001103 Award of a Professional Engineering Services Contract for Construction Management and Inspection Support of the 1655-1 Reservoir (0.5 MG) Construction and Rancho Jamul Hydropneumatic Pump Station Modification project to Michael Baker International COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee reviewed this item at a meeting held on April 19, 2022, and the following comments were made: •Staff is requesting the Committee’s support to obtain Board authorization for an execution of $762,496.00 contract withMichael Baker International (MBI) for Construction Manager andInspection support of the 1655-1 Reservoir and Rancho Jamul Hydropneumatic Pump Station Modification Project. •Staff and the Committee explained the purpose of thehydropneumatic pump station and how it functions. For example,for the properties that are at a higher elevation for tanks toprovide water, they are pushed out by hydropnuematic pumps right into the system that serves them using compressed air. Following the discussion, the Committee supported staffs’ recommendation and presentation to the full board as a Consent Item. ATTACHMENT B – Budget Detail SUBJECT/PROJECT: P2040-001103 Award of a Professional Engineering Services Contract for Construction Management and Inspection Support of the 1655- 1 Reservoir (0.5 MG) Construction and Rancho Jamul Hydropneumatic Pump Station Modification project to Michael Baker International Level Title1 Committed Expenditures Outstanding Commitment Projected Final Cost Vendor Project Phase Budget Budget Cost Type $0.00 $0.00 $0.00 $0.00 Budget Total $0.00 $0.00 $0.00 $0.00 $5,558.33 $5,558.33 $0.00 $5,558.33 HELIX ENVIRONMNTL PLANNING INC Planning $48,887.27 $48,887.27 $0.00 $48,887.27 ICF JONES & STOKES INC Planning Regulatory Agency Fees $50.00 $50.00 $0.00 $50.00 PETTY CASH CUSTODIAN Planning Standard Salaries $190,726.26 $190,726.26 $0.00 $190,726.26 Planning Total $245,221.86 $245,221.86 $0.00 $245,221.86 $290,166.25 $67,252.20 $222,914.05 $290,166.25 RICHARD BRADY & ASSOCIATES Design $40,334.40 $40,334.40 $0.00 $40,334.40 NINYO & MOORE GEOTECHNICAL Design $8,314.00 $8,314.00 $0.00 $8,314.00 HUNSAKER & ASSOCIATES Design Standard Salaries $45,010.48 $45,010.48 $0.00 $45,010.48 Design Total $383,825.13 $160,911.08 $222,914.05 $383,825.13 Consultant Contracts $52,250.00 $0.00 $52,250.00 $52,250.00 RICHARD BRADY & ASSOCIATES Construction Service Contracts $87.10 $87.10 $0.00 $87.10 DAILY JOURNAL CORPORATION Construction Standard Salaries $1,313.53 $1,313.53 $0.00 $1,313.53 Construction Total $53,650.63 $1,400.63 $52,250.00 $53,650.63 Consultant Contracts $12,082.00 $12,082.00 $0.00 $12,082.00 HUNSAKER & ASSOCIATES Phases $762,496.00 $0.00 $762,496.00 $762,496.00 MICHAEL BAKER INTERNATIONAL Design/Const. Standard Salaries ($6,359.85)($6,359.85)$0.00 $6,359.85-Phases Total $768,218.15 $5,722.15 $762,496.00 $768,218.15 Phases Fixed Asset $460,737.65 $460,737.65 $0.00 $460,737.65 Phases Total $460,737.65 $460,737.65 $0.00 $460,737.65 Budget $5,750,000.00 Total $1,911,653.42 $873,993.37 $1,037,660.05 $1,911,653.42 Construction Phases Project Budget Detail P2040-Res - 1655-1 Reservoir 0.5 MG 1/1/2004 - 4/7/2022 Planning Consultant Contracts Design Consultant Contracts OTAY WATER DISTRICT1655-1 RESERVOIR (0.5 MG)& RANCHO JAMUL HPS REPLACEMENT EXHIBIT A CIP P2040CIP P2642C:\OneDrive\Otay Water District\ENG CIP - Documents\P2040 1655-1 Reservoir 0.5 MG\Graphics\Exhibits-Figures\Exhibit A - Staff Report Location MAp.mxd HYDRO PSSITE 0 750375 Feet VICINITY MAP DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ÃÅ54 SITE !\ ÃÅ125 ÃÅ94 ÃÅ905 §¨¦805 FNTS PRESILLA DR F P R E SIL L A D R RESERVOIRSITE Qualifications of Team Responsiveness and Project Understanding Technical and Management Approach INDIVIDUAL SUBTOTAL - WRITTEN AVERAGE SUBTOTAL - WRITTEN Proposed Rates* Consultant's Commitment to DBE TOTAL - WRITTEN Additional Creativity and Insight Strength of Project Manager Presentation and Communication Skills Responses to Questions INDIVIDUAL TOTAL - ORAL AVERAGE TOTAL ORAL PRE-RATE INCLUSION SCORE TOTAL SCORE 30 25 30 85 85 15 Y/N 100 15 15 10 10 50 50 135 150 Poor/Good/ Excellent Michael Kerr 28 24 28 80 14 14 9 9 46 Brandon DiPietro 29 24 27 80 14 14 9 9 46 Kevin Cameron 26 23 27 76 13 14 9 8 44 Marciano Santos 27 23 27 77 14 14 10 9 47 Michael Long 28 24 27 79 14 14 9 9 46 Michael Kerr 25 20 25 70 11 12 8 7 38 Brandon DiPietro 26 21 23 70 10 10 6 6 32 Kevin Cameron 24 20 26 70 10 12 7 6 35 Marciano Santos 25 20 24 69 12 13 8 9 42 Michael Long 25 23 26 74 12 12 7 7 38 Michael Kerr 27 23 27 77 12 12 8 9 41 Brandon DiPietro 29 22 27 78 14 13 8 8 43 Kevin Cameron 26 22 26 74 12 13 8 7 40 Marciano Santos 26 21 26 73 13 14 9 9 45 Michael Long 27 22 28 77 13 13 9 9 44 Recommend All Three Firms Interview based on Main Proposal Recommended Hire based pre and post rate inclusion Consultant Rate ScoreMichael Baker International $762,496.00 15 *The fees were evaluated and assigned scores ranging from 1 to 15 by comparing the deviation from the maximum value with a zero deviation receiving a score of 1 and the highest deviation (or lowest price) receiving 15 points. W. M. Lyles $2,795,596.75 1 Note: Review Panel does not see or consider rates when scoring other categories. Rates are scored by a staff member who is not on the Review Panel. Valley CM $903,884.90 14 EXHIBIT B SUMMARY OF PROPOSAL RANKINGS 1655-1 0.5 MG Reservoir and Rancho Jamul HPS Construction Management and Inspection Services WRITTEN ORAL ExY93 REFERENCES RATES SCORING CHART 1 14Valley CM W. M. Lyles 71 Y 43 MAXIMUM POINTS 15Michael Baker International 78 76 Y 72 Ex133 Ex 46 139 90 37 109 124 108 119 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 11, 2022 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: Annual Review of the Investment Policy (Policy No. 27) of the District’s Code of Ordinances and the Re-delegation of Authority for All Investment Related Activities to the Chief Financial Officer GENERAL MANAGER’S RECOMMENDATION: That the Board receives the District’s Investment Policy (Policy No. 27) of the District’s Code of Ordinances for review and re-delegate authority for all investment related activities to the Chief Financial Officer, in accordance with Government Code Section 53607. COMMITTEE ACTION: See Attachment A. PURPOSE: Government Code Section 53646 recommends that the District’s Investment Policy be tendered to the Board on an annual basis for review. In addition, Government Code Section 53607 requires that for the Board’s delegation of investment responsibilities to the Chief Financial Officer to remain effective, the governing board must re- delegate authority over investment activities on an annual basis. ANALYSIS: The primary goals of the Investment Policy are to assure compliance with the California Government Code, Sections 53600 et seq. The primary objectives, in priority order, of investment activities are: AGENDA ITEM 6e 1. Protect the principal of the funds. 2. Remain sufficiently liquid to enable the District to meet all operating requirements which might be reasonably anticipated. 3. The District’s return is a market rate of return that is commensurate with the conservative investments approach to meet the first two objectives of safety and liquidity. The code provides a conservative range of investment options for local agencies, including Federal Treasuries, Federal Agencies, Callable Federal Agencies, the State Pool, the County Pool, high- grade corporate debt, and others. Each year, staff reviews the California Debt and Investment Advisory Commission (CDIAC) Investment Guidelines to ensure our Investment Policy reflects the most recent and relevant updates approved by the California State Legislature. During this year’s policy review, there were no relevant legislative changes that affect our Investment Policy. On an annual basis, staff submits the Investment Policy to our list of Broker/Dealers for their professional review and to ensure they acknowledge and understand the District’s Investment Policy. This year, District Brokers/Dealers did not recommend any changes be made to our Investment Policy. Because of the District’s adherence to a conservative range of authorized investments, we have been able to maintain a healthy and diversified portfolio that meets our overall investment objectives and supports our long-term financial plans. The current policy is consistent with the current law and the overall objectives of the policy are being met;therefore, there are no recommended changes to the District’s Investment Policy at this time. FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. STRATEGIC GOAL: Demonstrate financial health through formalized policies, prudent investing, and efficient operations. LEGAL IMPACT: None. Attachments: A) Committee Action B) Policy No. 27 C) Presentation Slides ATTACHMENT A SUBJECT/PROJECT: Annual Review of the Investment Policy (Policy No. 27) of the District’s Code of Ordinances and the Re-delegation of Authority for All Investment Related Activities to the Chief Financial Officer COMMITTEE ACTION: The Finance and Administration Committee reviewed this item at a meeting held on April 20, 2022 and the following comments were made: • Staff is requesting that the board receive the district’s Investment Policy, Policy No. 27, of the District’s Code of Ordinances for review and re-delegate authority for all investment related activities to the Chief Financial Officer, in accordance with Government Code Section 53607. • Staff stated that there were no relevant legislative changes affecting the District’s Investment Policy and, thus, no changes are proposed to the policy. Upon completion of the discussion, the Committee supported staff’s recommendation and presentation to the full board on the consent calendar. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 09/15/93 05/05/21 Page 1 of 17 1.0 POLICY It is the policy of the Otay Water District to invest public funds in a manner which will provide maximum security with the best interest return, while meeting the daily cash flow demands of the entity and conforming to all state statues governing the investment of public funds. 2.0 SCOPE This investment policy applies to all financial assets of the Otay Water District. The District pools all cash for investment purposes. These funds are accounted for in the District’s audited Comprehensive Annual Financial Report (CAFR) and include: 2.1) General Fund 2.2) Capital Project Funds 2.2.1) Designated Expansion Fund 2.2.2) Restricted Expansion Fund 2.2.3) Designated Betterment Fund 2.2.4) Restricted Betterment Fund 2.2.5) Designated Replacement Fund 2.2.6) Restricted New Water Supply Fund 2.3) Other Post Employment Fund (OPEB) 2.4) Debt Reserve Fund Exceptions to the pooling of funds do exist for tax-exempt debt proceeds, debt reserves and deferred compensation funds. Funds received from the sale of general obligation bonds, certificates of participation or other tax-exempt financing vehicles are segregated from pooled investments and the investment of such funds are guided by the legal documents that govern the terms of such debt issuances. 3.0 PRUDENCE Investments should be made with judgment and care, under current prevailing circumstances, which persons of prudence, discretion and intelligence, exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. Attachment B OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 09/15/93 05/05/21 Page 2 of 17 The standard of prudence to be used by investment officials shall be the “Prudent Person” and/or "Prudent Investor" standard (California Government Code 53600.3) and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. 4.0 OBJECTIVE As specified in the California Government Code 53600.5, when investing, reinvesting, purchasing, acquiring, exchanging, selling and managing public funds, the primary objectives, in priority order, of the investment activities shall be: 4.1)Safety: Safety of principal is the foremost objective of the investment program. Investments of the Otay Water District shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the District will diversify its investments by investing funds among a variety of securities offering independent returns and financial institutions. 4.2)Liquidity: The Otay Water District’s investment portfolio will remain sufficiently liquid to enable the District to meet all operating requirements which might be reasonably anticipated. 4.3)Return on Investment: The Otay Water District’s investment portfolio shall be designed with the objective of attaining a benchmark rate of return throughout budgetary and economic cycles, commensurate with the District’s investment risk constraints and the cash flow characteristics of the portfolio. 5.0 DELEGATION OF AUTHORITY Authority to manage the Otay Water District’s investment program is derived from the California Government Code, Sections 53600 through 53692. Management responsibility for the investment program is hereby OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 09/15/93 05/05/21 Page 3 of 17 delegated to the Chief Financial Officer (CFO), who shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials and their procedures in the absence of the CFO. The CFO shall establish written investment policy procedures for the operation of the investment program consistent with this policy. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the CFO. 6.0 ETHICS AND CONFLICTS OF INTEREST Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the General Manager any material financial interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the District. 7.0 AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS The Chief Financial Officer shall maintain a list of District selected financial institutions and security broker/dealers authorized and approved to provide investment services in the State of California. Investment services include the buying or selling of permissible investments such as treasuries, government agencies, etc. for delivery to the custodian bank. These may include “primary” dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15C3- 1 (Uniform Net Capital Rule). No public deposit shall be made except in a qualified public depository as established by state laws. All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must supply the District with the following, as appropriate: OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 09/15/93 05/05/21 Page 4 of 17 Audited Financial Statements. Proof of Financial Industry Regulatory Authority (FINRA) certification. Proof of state registration. Completed broker/dealer questionnaire. Certification of having read the District’s Investment Policy. Evidence of adequate insurance coverage. An annual review of the financial condition and registrations of qualified bidders will be conducted by the CFO. A current audited financial statement is required to be on file for each financial institution and broker/dealer through which the District invests. 8.0 AUTHORIZED AND SUITABLE INVESTMENTS From the governing body perspective, special care must be taken to ensure that the list of instruments includes only those allowed by law and those that local investment managers are trained and competent to handle. The District is governed by the California Government Code, Sections 53600 through 53692, to invest in the following types of securities, as further limited herein: 8.01)United States Treasury Bills, Bonds, Notes or those instruments for which the full faith and credit of the United States are pledged for payment of principal and interest. There is no percentage limitation of the portfolio which can be invested in this category, although a five-year maturity limitation is applicable. 8.02)Local Agency Investment Fund (LAIF), which is a State of California managed investment pool, may be used up to the maximum permitted by State Law (currently $75 million). The District may also invest bond proceeds in LAIF with the same but independent maximum limitation. 8.03)Bonds, debentures, notes and other evidence of indebtedness issued by any of the following government agency issuers: OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 09/15/93 05/05/21 Page 5 of 17 Federal Home Loan Bank (FHLB) Federal Home Loan Mortgage Corporation (FHLMC or "Freddie Mac") Federal National Mortgage Association (FNMA or "Fannie Mae") Government National Mortgage Association (GNMA or “Ginnie Mae”) Federal Farm Credit Bank (FFCB) Federal Agricultural Mortgage Corporation (FAMCA or “Farmer Mac”) There is no percentage limitation of the portfolio which can be invested in this category, although a five-year maturity from the settlement date limitation is applicable. Government agencies whose implied guarantee has been reduced or eliminated shall require an “A” rating or higher by a nationally recognized statistical rating organization. 8.04)Interest-bearing demand deposit accounts must be made only in Federal Deposit Insurance Corporation (FDIC) insured accounts. For deposits in excess of the insured maximum of $250,000, approved collateral shall be required in accordance with California Government Code, Section 53652. Certificates of Deposit (CD) will be made only to the FDIC-insured limit of $250,000. Investments in CD’s are limited to 15 percent of the District’s portfolio. 8.05) Commercial paper, which is short-term, unsecured promissory notes of corporate and public entities. Purchases of eligible commercial paper may not exceed 2 percent of the outstanding paper of an issuing corporation, and maximum investment maturity will be restricted to 270 days. Investment is further limited as described in California Government Code, Section 53601(h). Purchases of commercial paper may not exceed 10 percent of the District’s portfolio. 8.06)Medium-term notes defined as all corporate debt securities with a maximum remaining maturity of five years from the settlement date or less, and that meet the further requirements of California Government Code, Section 53601(k). Investments in medium-term notes are limited to 10 percent of the OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 09/15/93 05/05/21 Page 6 of 17 District’s portfolio and no more than 2 percent of the outstanding medium-term notes of any single issuer. 8.07)Money market mutual funds that invest only in Treasury securities and repurchase agreements collateralized with Treasury securities, and that meet the further requirements of California Government Code, Section 53601(l). Investments in money market mutual funds are limited to 10 percent of the District's portfolio. 8.08)The San Diego County Treasurer’s Pooled Money Fund, which is a County managed investment pool, may be used by the Otay Water District to invest excess funds. There is no percentage limitation of the portfolio which can be invested in this category. 8.09)Under the provisions of California Government Code 53601.6, the Otay Water District shall not invest any funds covered by this Investment Policy in inverse floaters, range notes, interest-only strips derived from mortgage pools, or any investment that may result in a zero-interest accrual if held to maturity. Also, the borrowing of funds for investment purposes, known as leveraging, is prohibited. 9.0 INVESTMENT POOLS/MUTUAL FUNDS A thorough investigation of the pool/fund is required prior to investing, and on a continual basis. There shall be a questionnaire developed which will answer the following general questions: A description of eligible investment securities, and a written statement of investment policy and objectives. A description of interest calculations and how it is distributed, and how gains and losses are treated. A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited. A description of who may invest in the program, how often, and what size deposits and withdrawals are allowed. A schedule for receiving statements and portfolio listings. Are reserves, retained earnings, etc., utilized by the pool/fund? OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 09/15/93 05/05/21 Page 7 of 17 A fee schedule, and when and how is it assessed. Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds? 10.0 COLLATERALIZATION Collateralization will be required on certificates of deposit exceeding the $250,000 FDIC insured maximum. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be 102% of market value of principal and accrued interest. Collateral will always be held by an independent third party with whom the entity has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the entity and retained. The right of collateral substitution is granted. 11.0 SAFEKEEPING AND CUSTODY All security transactions entered into by the Otay Water District shall be conducted on a delivery-versus-payment (DVP) basis. Securities will be held by a third-party custodian designated by the District and evidenced by safekeeping receipts. 12.0 DIVERSIFICATION The Otay Water District will diversify its investments by security type and institution, with limitations on the total amounts invested in each security type as detailed in Paragraph 8.0, above, so as to reduce overall portfolio risks while attaining benchmark average rate of return. With the exception of U.S. Treasury securities, government agencies, and authorized pools, no more than 50% of the District’s total investment portfolio will be invested with a single financial institution. 13.0 MAXIMUM MATURITIES To the extent possible, the Otay Water District will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the District will not directly invest in securities maturing more than five years from the settlement date of the purchase. However, for time deposits with banks or savings and OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 09/15/93 05/05/21 Page 8 of 17 loan associations, investment maturities will not exceed two years. Investments in commercial paper will be restricted to 270 days. 14.0 INTERNAL CONTROL The Chief Financial Officer shall establish an annual process of independent review by an external auditor. This review will provide internal control by assuring compliance with policies and procedures. 15.0 PERFORMANCE STANDARDS The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs. The Otay Water District’s investment strategy is passive. Given this strategy, the basis used by the CFO to determine whether market yields are being achieved shall be the State of California Local Agency Investment Fund (LAIF) as a comparable benchmark. 16.0 REPORTING The Chief Financial Officer shall provide the Board of Directors monthly investment reports which provide a clear picture of the status of the current investment portfolio. The management report should include comments on the fixed income markets and economic conditions, discussions regarding restrictions on percentage of investment by categories, possible changes in the portfolio structure going forward and thoughts on investment strategies. Schedules in the quarterly report should include the following: A listing of individual securities held at the end of the reporting period by authorized investment category. Average life and final maturity of all investments listed. Coupon, discount or earnings rate. Par value, amortized book value, and market value. Percentage of the portfolio represented by each investment category. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 09/15/93 05/05/21 Page 9 of 17 17.0 INVESTMENT POLICY ADOPTION The Otay Water District’s investment policy shall be adopted by resolution of the District’s Board of Directors. The policy shall be reviewed annually by the Board and any modifications made thereto must be approved by the Board. 18.0 GLOSSARY See Appendix A. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 09/15/93 05/05/21 Page 10 of 17 APPENDIX A: GLOSSARY ACTIVE INVESTING: Active investors will purchase investments and continuously monitor their activity, often looking at the price movements of their stocks many times a day, in order to exploit profitable conditions. Typically, active investors are seeking short term profits. AGENCIES: Federal agency securities and/or Government-sponsored enterprises. BANKERS’ ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. BENCHMARK: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments. BROKER/DEALER: Any individual or firm in the business of buying and selling securities for itself and others. Broker/dealers must register with the SEC. When acting as a broker, a broker/dealer executes orders on behalf of his/her client. When acting as a dealer, a broker/dealer executes trades for his/her firm's own account. Securities bought for the firm's own account may be sold to clients or other firms, or become a part of the firm's holdings. CERTIFICATE OF DEPOSIT (CD): A short or medium term, interest bearing, FDIC insured debt instrument offered by banks and savings and loans. Money removed before maturity is subject to a penalty. CDs are a low risk, low return investment, and are also known as “time deposits”, because the account holder has agreed to keep the money in the account for a specified amount of time, anywhere from a few months to several years. COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMMERCIAL PAPER: An unsecured short-term promissory note, issued by corporations, with maturities ranging from 2 to 270 days. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 09/15/93 05/05/21 Page 11 of 17 COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the Otay Water District. It includes detailed financial information prepared in conformity with generally accepted accounting principles (GAAP). It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed statistical section. COUPON: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a set date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DEBENTURE: A bond secured only by the general credit of the issuer. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities). DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount. DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued at a discount and redeemed at maturity for full face value, e.g., U.S. Treasury Bills. DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 09/15/93 05/05/21 Page 12 of 17 FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L’s, small business firms, students, farmers, farm cooperatives, and exporters. FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures deposits in member banks and thrifts. FEDERAL FARM CREDIT BANK (FFCB): The Federal Farm Credit Bank system supports agricultural loans and issues securities and bonds in financial markets backed by these loans. It has consolidated the financing programs of several related farm credit agencies and corporations. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations. FEDERAL AGRICULTURAL MORTGAGE CORPORATION (FAMC or Farmer Mac): A stockholder owned, publicly-traded corporation that was established under the Agricultural Credit Act of 1987, which added a new Title VIII to the Farm Credit Act of 1971. Farmer Mac is a government sponsored enterprise, whose mission is to provide a secondary market for agricultural real estate mortgage loans, rural housing mortgage loans, and rural utility cooperative loans. The corporation is authorized to purchase and guarantee securities. Farmer Mac guarantees that all security holders will receive timely payments of principal and interest. FEDERAL HOME LOAN BANK (FHLB): Government sponsored wholesale banks (currently 12 regional banks), which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC or Freddie Mac): A stockholder owned, publicly traded company chartered by the United States federal government in 1970 to purchase mortgages and related securities, and then issue securities and bonds in financial markets backed by those mortgages in secondary markets. Freddie Mac, like its competitor Fannie Mae, is regulated by the United States Department of Housing and Urban Development (HUD). OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 09/15/93 05/05/21 Page 13 of 17 FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA or Fannie Mae): FNMA, like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae is a private stockholder-owned corporation. The corporation’s purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA’s securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system. FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC. (FINRA): An independent, not-for-profit organization authorized by Congress to protect America’s investors by making sure the securities industry operates fairly and honestly. It is dedicated to investor protection and market integrity through effective and efficient regulation of the securities industry. FINRA is the successor to the National Association of Securities Dealers, Inc. (NASD). GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): A government owned agency which buys mortgages from lending institutions, securitizes them, and then sells them to investors. Because the payments to investors are guaranteed by the full faith and credit of the U.S. Government, they return slightly less interest than other mortgage-backed securities. INTEREST-ONLY STRIPS: A mortgage-backed instrument where the investor receives only the interest, no principal, from a pool of mortgages. Issues are highly interest rate sensitive, and cash flows vary between interest periods. Also, the maturity date may occur earlier than that stated if all loans within the pool are pre-paid. High prepayments on underlying mortgages can return less to the holder than the dollar amount invested. INVERSE FLOATER: A bond or note that does not earn a fixed rate of interest. Rather, the interest rate is tied to a specific interest OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 09/15/93 05/05/21 Page 14 of 17 rate index identified in the bond/note structure. The interest rate earned by the bond/note will move in the opposite direction of the index. An inverse floater increases the market rate risk and modified duration of the investment. LEVERAGE: Investing with borrowed money with the expectation that the interest earned on the investment will exceed the interest paid on the borrowed money. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL AGENCY INVESTMENT FUND (LAIF): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase/reverse repurchase agreements that establish each party’s rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller borrower. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded. MUTUAL FUNDS: An open-ended fund operated by an investment company which raises money from shareholders and invests in a group of assets, in accordance with a stated set of objectives. Mutual funds raise money by selling shares of the fund to the public. Mutual funds then take the money they receive from the sale of their shares (along with any money made from previous investments) and use it to purchase OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 09/15/93 05/05/21 Page 15 of 17 various investment vehicles, such as stocks, bonds, and money market instruments. MONEY MARKET MUTUAL FUNDS: An open-end mutual fund which invests only in money markets. These funds invest in short term (one day to one year) debt obligations such as Treasury bills, certificates of deposit, and commercial paper. PASSIVE INVESTING: An investment strategy involving limited ongoing buying and selling actions. Passive investors will purchase investments with the intention of long-term appreciation and limited maintenance, and typically don’t actively attempt to profit from short term price fluctuations. Also known as a buy-and-hold strategy. PRIMARY DEALER: A designation given by the Federal Reserve System to commercial banks or broker/dealers who meet specific criteria, including capital requirements and participation in Treasury auctions. These dealers submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission registered securities broker/dealers, banks, and a few unregulated firms. PRUDENT PERSON RULE: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state—the so-called legal list. In other states the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital. PUBLIC SECURITIES ASSOCIATION (PSA): A trade organization of dealers, brokers, and bankers who underwrite and trade securities offerings. QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 09/15/93 05/05/21 Page 16 of 17 RANGE NOTE: An investment whose coupon payment varies and is dependent on whether the current benchmark falls within a pre-determined range. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return. REGIONAL DEALER: A securities broker/dealer, registered with the Securities & Exchange Commission (SEC), who meets all of the licensing requirements for buying and selling securities. REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security “buyer” in effect lends the “seller” money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money that is increasing bank reserves. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection. SECONDARY MARKET: A market made for the purchase and sale of outstanding securities issues following their initial distribution. SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation. SEC RULE 15C3-1: See Uniform Net Capital Rule. STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, FAMCA, etc.), and Corporations, which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised INVESTMENT POLICY 27 09/15/93 05/05/21 Page 17 of 17 TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year. TREASURY BONDS: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years. TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. INVESTMENT POLICY No. 27 MAY 11, 2022 Attachment C Eid Fakhouri, CPA Finance Manager POLICY REVIEW Purpose: ➢Annual Investment Policy Review California Government Code Section 53646 ➢Delegation of Investment Authority Chief Financial Officer California Government Code Section 53607 INVESTMENT OBJECTIVE To safeguard principal, maintain liquidity, and to achieve a market investment return. ➢Fund Objectives (in order of priority) Safety Liquidity Yield POLICY CHANGES ➢CDIAC –Annual Legislative Review No Recommended Changes ➢California State Treasurer No Changes in LAIF Limit, currently set at $75M. DELEGATION OF INVESTMENT AUTHORITY Re-delegate authority for all investment related activities to the Chief Financial Officer in accordance with Government Code Section 53607. BOARD ACTION ➢The action we are requesting today is to review and receive the 2022 Investment Policy 27 and to request the Re- delegation of authority for all investment activities to the District’s Chief Financial Officer. QUESTIONS? STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 11, 2022 PROJECT: Various DIV. NO.ALL SUBMITTED BY: Kent Payne Purchasing and Facilities Manager APPROVED BY: Adolfo Segura, Chief, Administrative Services Jose Martinez, General Manager SUBJECT: AMEND THE DISTRICT'S PURCHASING MANUAL TO INCORPORATE BY REFERENCE THE DISTRICT’S CONFLICT OF INTEREST CODE AND ANTIFRAUD POLICIES AND TO REAFFIRM THE DISTRICT’S COMMITMENT TO BEST VALUE PROCUREMENT GENERAL MANAGER’S RECOMMENDATION: That the Board approve an amendment to the District’s Purchasing Manual Section 1.2, “Ethics Statement”, to incorporate by reference the District’s Code of Ordinances Policy 41 - Employee Compliance With District’s Conflict Of Interest Code and Policy 50 - Antifraud Policy so as to add definition to “high standards of ethical behavior” in procurement; and, approve an amendment to Section 2.2.5, “Purchasing and Facilities Manager”, to clarify and reaffirm the District’s commitment to best value procurement. COMMITTEE ACTION: See “Attachment A”. PURPOSE: To request that the Board amend the District’s Purchasing Manual as presented in “Attachment B” to incorporate the District’s Conflict of Interest Code and Antifraud Policies and to clarify the District’s commitment to Best Value Procurement. AGENDA ITEM 6f 2 ANALYSIS: The Board of Directors establishes the operational guidelines and procedures with respect to purchasing materials, equipment, and services necessary to conduct the District’s business. These procedures are defined and published in the District’s Purchasing Manual. As a normal course of business, the manual is reviewed periodically, and changes are recommended that are intended to improve the operation of the District including emphasizing and reaffirming the Districts commitment to high ethical standards in procurement, and to seek the best value in all procurement. Section 1.2 - Ethics Statement The Purchasing Manual’s Section 1.2 states that District staff engaged in any aspect of procurement are to be held to a high standard of ethical behavior for which the Purchasing Manual has been designed to ensure. The District, through its Code of Ordinances, has established Conflict of Interest and Antifraud policies which, in part, instruct on procurement activities and add definition to the Manual’s ethical behavior declaration. Therefore, staff is recommending that Policy 41 - Employee Compliance With District’s Conflict Of Interest Code and Policy 50 - Antifraud Policy be incorporated into the Purchasing Manual by reference as presented in “Attachment B”. 2.2.5 - Purchasing and Facilities Manager The National Institute for Public Procurement (NIGP), and the procurement community as a whole, promote Best Value Procurement (BVP)* as an industry standard which dictates the consideration of all factors that go into procurement decisions for goods and services including, but not limited to, price, availability, quality, training, maintenance, and all other associated costs. Likewise, the Purchasing Manual promotes the concept of BVP through terms such as “maximize the value”, “with the greatest value”, “best meets the District’s needs”, and “best meets the District’s requirements”, but does not clearly call out the standard itself. Section 2.2.5 details the responsibilities of the Purchasing and Facilities Manager and includes item “e” with the requirement to “Make purchases for the District in such a manner so as to maximize the value 3 received….” Staff recommends that “Best Value Procurement” be inserted into item “e” so that it reads: “Make purchases based on Best Value Procurement for the District in such a manner so as to maximize the value received for monies expended” thereby, clarifying and affirming the District’s commitment to the BVP standard (see “Attachment B”). *Best Value in Government Procurement, Concepts and Practices, Published by NIGP: The Institute for Public Procurement, Copyright 2013 NIGP, Inc. FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. STRATEGIC GOAL: This action supports the District’s goal to ensure financial health through formalized policies, prudent investing, and efficient operations. LEGAL IMPACT: None. ATTACHMENTS: Attachment A – Committee Action Report Attachment B – Proposed Updates to Purchasing Manual Sections 1.2 and 2.5.5 Attachment C – Purchasing Manual Updates ATTACHMENT A SUBJECT/PROJECT: AMEND THE DISTRICT'S PURCHASING MANUAL TO INCORPORATE BY REFERENCE THE DISTRICT’S CONFLICT OF INTEREST CODE AND ANTIFRAUD POLICIES AND TO REAFFIRM THE DISTRICT’S COMMITMENT TO BEST VALUE PROCUREMENT COMMITTEE ACTION: The Finance and Administration Committee reviewed this item at a meeting held on April 20, 2022 and the following comments were made: • Staff is requesting that the Board approve the proposed amendments to the District’s Purchasing Manual. The first recommended amendment is to add definition to what “ethical behavior” means in context with purchasing activities by adding reference to the District’s Code of Ordinances’ Policy 41, Employee Compliance with the District’s Conflict of Interest Code, and Policy 50, Antifraud Policy. The second recommended amendment is to clarify that the Purchasing Manual directs staff to seek “best value” in all procurement activities by inserting “Best Value Procurement” into Section 2.2.5, “Purchasing and Facilities Manager.” • The committee inquired if the ethical behavior, conflict of interest, and other standards are applied to contracted vendors as well as employees. Staff noted that while the Purchasing Manual applies to the Board and all District employees, there are separate contracts with vendors that include disclaimers regarding ethical standards. Also, when initially going out to bid, vendors must acknowledge that there is no conflict of interest on their part. • Staff confirmed if it was found that a vendor had intentionally omitted a conflict of interest during the solicitation process, the contract could be terminated. If there was an unintended omission a cure letter is sent allowing the vendor an opportunity to rectify the conflict. Upon completion of the discussion, the Committee supported staff’s recommendation and presentation to the full board on the consent calendar. ATTACHMENT B SUBJECT/PROJECT: AMEND THE DISTRICT'S PURCHASING MANUAL TO INCORPORATE BY REFERENCE THE DISTRICT’S CONFLICT OF INTEREST CODE AND ANTIFRAUD POLICIES AND TO REAFFIRM THE DISTRICT’S COMMITMENT TO BEST VALUE PROCUREMENT Proposed Updates: __________________________________ Page 1 of 32 OTAY WATER DISTRICT PURCHASING MANUAL Revised June 3, 2020 Page 2 of 32 Table of Contents Section Page 1 – Mission and Ethics Statement . . . . . . . . . . . . . . . . . . . 4 2 – Organization . . . . . . . . . . . . . . . . . . . . . 5 Purpose Statement Responsibilities 3 - Purchasing Policy . . . . . . . . . . . . . . . . . . . 7 Purpose General Policies 4 - Purchasing Guidelines . . . . . . . . . . . . . . . . . 9 Purpose General Guidelines and Protocols Vendor Involvement Guidelines and Protocols 5 - Legal Considerations Regarding Purchasing . . . . . . . 11 Purpose General 6 - Types of Purchases . . . . . . . . . . . . . . . . . . 12 Purpose General Procedures Construction Services (Public Works) Professional Consulting Cooperative/Joint Purchases Emergency Purchases 13 Materials, Goods, Services, and General Consulting Petty Cash Sole Source Purchases Blanket Purchase Orders: Guidelines for Issuing Blanket Purchase Orders 14 Guidelines for the Use of Blanket Purchase Orders 7 - Pricing/Bidding Requirements . . . . . . . . . . . . . . 15 Purpose General Requirements Formal Advertising Quotations Public Works – Construction Request for Proposals 16 Two Step Bidding Purchases Exempt from Competitive Pricing Emergency Purchases 17 Page 3 of 32 Board Authorized Purchases Exceeding the General Manager’s Authority 8 - Change Orders . . . . . . . . . . . . . . . . . . . . . 18 Purpose General 9 - Authorization to Purchase – Signatory Authority . . . . 19 Purpose General 10 - Documentation of Purchases . . . . . . . . . . . . . . 20 Purpose General Procedure Purchases Exempt from Purchase Order Requirement 11 - Special Considerations . . . . . . . . . . . . . . . . 22 Exceptions to Purchasing Procedures Bonding Encouraging Emerging Business Enterprise Insurance Invoicing Receiving, Inspection and Acceptance 23 Specifications Inventory 12 - Disposal of Surplus Property . . . . . . . . . . . . . 24 Purpose General Procedure Auction Sale Sale to Federal, State, and Local Municipalities and Government Agencies 25 Sale to Republic of Mexico Municipalities and U.S. Government Agencies 26 Donation of District Surplus Property to Municipalities, Government Agencies, and Charitable Organizations 27 Exchange or Trade-In 28 Disposal as Scrap 13 – Cal Card Credit Cards . . . . . . . . . . . . . . . . . 29 Purpose Guidelines Definitions Procedure 30 Authorized Purchases Responsibilities Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Revisions . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Page 4 of 32 Section 1 – Mission and Ethics Statement 1.0 PURPOSE: To provide an understanding of the basic goal of the purchasing function within the Otay Water District. 1.1 MISSION STATEMENT: To provide for the procurement, storage and distribution of all supplies, equipment and services for the District using progressive purchasing techniques, methods and stringent controls while seeking the highest cost savings for the customers of the District. 1.2 ETHICS STATEMENT: The Otay Water District, its governing Board, employees, and agents who are involved at any point in the process to select suppliers, award and administer contracts and approve payments must adhere to high standards of ethical behavior. To this end, the policies and guidelines established in this Purchasing Manual, the Otay Water District’s Code of Ordinances Policy 41 - Employee Compliance With District’s Conflict Of Interest Code and Policy 50 - Antifraud Policy are intended to ensure that purchasing and purchasing related decisions are in accordance with adherence to the high ethical standards of the purchasing community and of the Otay Water District. Page 5 of 32 Section 2 – Organization (Rev 2017-05-03) (Rev 2017-08-02) 2.0 PURPOSE: To provide an understanding of the Purchasing Division’s organization and its relationship within the Otay Water District. 2.1 STATEMENT: The Purchasing and Facilities Manager directs the Purchasing and Facilities Division. The Purchasing and Facilities Manager reports to the Chief of Administrative Services, who in turn reports to the General Manager. The General Manager reports to the Board of Directors. Board of Directors | General Manager | Chief of Administrative Services | Purchasing and Facilities Manager 2.2 RESPONSIBILITIES: 2.2.1 Board of Directors – Ultimate authority regarding the purchasing policies, practices and guidelines of the District rests with the Board of Directors. It is the Board’s responsibility to establish policy and direction regarding purchasing functions in accordance with the District’s Code of Ordinances. 2.2.2 General Manager – The General Manager is responsible, in accordance with the District’s Code of Ordinances, for ensuring that the District complies with Board direction regarding the purchasing function. 2.2.3 (Deleted) 2.2.4 Chief of Administrative Services – It is the Chief’s responsibility to administer the District’s Purchasing and Facilities Division as directed by the General Manager. 2.2.5 Purchasing and Facilities Manager – It is the Manager’s responsibility to manage the Purchasing and Facilities Division as directed by the Chief of Administrative Services and to: a. Develop objectives, policies, programs and procedures for the negotiation and the acquisition of materials, supplies, equipment and services for the District. Page 6 of 32 b. Coordinate purchasing policies throughout the District. c. Disseminate to other departments purchasing information designed to promote efficient operations. d. Negotiate and approve assigned purchase orders in the best interest of the District. e. Make purchases based on Best Value Procurement for the District in such a manner so as to maximize the value received for monies expended. f. Arrange for the sale or disposal of materials and supplies declared surplus by the Board of Directors. g. Maintain inventory levels at a satisfactory operating level. h. Work with District departments to promote vendor/seller relations. i. Work with District Departments and Committees establishing standardization of workmanship, materials and supplies used throughout the District. j. Protect the District’s interest in matters concerning charges related to the purchasing of materials, supplies and services. Page 7 of 32 Section 3 – Purchasing Policy 3.0 PURPOSE: To provide an understanding of the purchasing function and to establish and present the purchasing policies within the Otay Water District. 3.1 GENERAL: Purchasing is fundamental to the operation of the District. It means the acquisition of goods and services in exchange for an acceptable price or consideration. A purchase may be in the simplest form or it may involve the development of lengthy written agreements. Every purchase involving the transfer of goods or services is a contract. As a contract, there are considerations as to the nature of the purchase, its value, timing, method of payment, delivery, and other conditions that must be addressed. For this reason, it is the District’s policy to rest the responsibility and authority to purchase within the Purchasing and Facilities Division (Purchasing Department). 3.2 POLICIES: a. General Policy: All purchases and requests for pricing or repair services shall be made in accordance with applicable laws and the District’s Purchasing Manual, policies, and procedures. b. Open Door Policy: The Purchasing Department shall maintain an “Open Door” policy with all salespeople desiring to sell goods or services to the District. c. Interviews with Salespeople: If it is necessary for staff, other than Purchasing Department personnel, to interview salespeople regarding details of their products, requests for such visits should be made through the Purchasing Department. In interviews with salespeople, no one except the Purchasing Department may comment on the preference for any product, or give any information regarding performance or price. d. Correspondence with Suppliers: All correspondence with suppliers must be processed through the Purchasing Department unless it is technical in nature and makes no references towards purchasing. e. Negotiated Changes: Unless authorized by the General Manager, the Purchasing Department will negotiate all changes to purchases. f. Authority to Question: In order to serve the best interest of the District, the Purchasing Department shall have the authority to question all requests for purchases regarding quantity, quality, timing, and specifications. g. Approval of Gratis Materials and Samples: The Purchasing Department must approve all gratis materials, supplies or services submitted to the District as samples or tests prior to their acceptance. h. Conflict of Interest: Employees are required to disclose to the Purchasing Department any conflict of interest in the selection or recommendation for selection of District vendors, suppliers, or consultants. All contracts shall contain language, as approved by the District’s legal counsel, requiring Vendors, Suppliers, and Consultants to disclose any actual and potential conflicts of interest that exist between the Vendor, Supplier, or Consultant and the District, its representatives, agents, Board of Directors, and employees. Page 8 of 32 Section 4 – Purchasing Guidelines 4.0 PURPOSE: To provide guidelines and protocol for the standardized application of purchasing activities within the Otay Water District. 4.1 GENERAL: To a large extent, the Purchasing and Facilities Division’s (Purchasing Department) performance will be measured by how well it satisfies the needs of various departments within the District. It is essential that there be mutual cooperation between District departments to ensure that a condition of confidence exists. For this reason the following standardized guidelines and protocols have been established. 4.1.1 Guidelines and Protocol: a. Departments will keep the Purchasing Department informed of their current and anticipated activities. b. Overlapping duties regarding purchases will be clearly defined in the best interest of the District. c. If the material or equipment requested is not readily available or its price is such that significant savings can be realized through alternatives, the alternative that is in the best interest of the District shall be selected. d. Policies and procedures of the District’s Purchasing Manual will be followed. e. The Purchasing Department will notify interested departments on matters related to shortages, new products, discontinued products or anything else that directly affects the performance of the interested department, the Purchasing Department, or the District. 4.2 VENDOR INVOLVEMENT Through the Purchasing Department’s contact with vendors, it is in a position to develop or diminish the District’s reputation and/or vendor/District relationships. The District promotes a fair and aggressive purchasing manner that results in positive vendor relationships. To accomplish this, the District has established the following standardized guidelines and protocols. 4.2.1 Guidelines and Protocol: a. All competition between suppliers is to be kept open and fair. b. Advantages through vendor errors shall be declined. c. Revision of bids after submission shall not be accepted. d. Materials not strictly up to specification that may be usable without sacrifice shall be reviewed. e. Bids shall only be solicited from those vendors with whom the District intends to do business. Page 9 of 32 f. The District shall not be obligated to any particular vendor. g. Vendor locations may be visited to promote product and vendor knowledge. h. Transactions and communications with vendors shall be truthful yet shall not divulge sensitive or confidential information related to competition. i. Vendor questions, calls or correspondence shall be answered promptly and in a manner that maintains fair competition. Page 10 of 32 Section 5 – Legal Considerations Regarding Purchasing 5.0 PURPOSE: To provide understanding and direction related to legal considerations within the purchasing function of the Otay Water District. 5.1 GENERAL: The District has designated that the Purchasing and Facilities Manager has the authority to act fiducially as its agent with regard to the purchase of materials, supplies, and services. This designation is referred to as Law of Agency. As such, the Purchasing and Facilities Manager binds the District to whatever buying decision is made and makes the District responsible for any purchase order issued under his/her limits of authority. In addition to acting in the best interest of the District, the Purchasing and Facilities Manager must ensure that various Federal and State statutes governing purchasing and interstate commerce are complied with. For these reasons, consultation with the District’s legal counselor shall be made whenever there is a question concerning anti-trust implications, warranty, risk of loss and rights and remedies of the District. Page 11 of 32 Section 6 – Types of Purchases 6.0 PURPOSE: To provide standardized procedures for the purchase of consulting, construction, materials, goods, and services within the Otay Water District. 6.1 GENERAL: The District recognizes the varying levels of complexity within the purchasing function and the need to establish standardized procedures to administer the various types of purchases made within the District. 6.2 PROCEDURES: 6.2.1 Construction Services (Public Works): The General Manager, or his/her designee, may award purchase orders/contracts for construction services that are within the authorization limit of the General Manager as set by the Board of Directors. Competitive pricing of construction purchases must be in accordance with the bidding and pricing procedures of the District as outlined in Section 7.2.3 (Pricing/Bidding Requirements) of this manual. Award shall be made to the responsive and responsible bidder who has submitted the lowest bid meeting the requirements and criteria set forth in the invitation to bid. For construction contracts exceeding staff’s limit of authorization, a summary of bids together with staff’s recommendation for award or possible rejection of bids must be presented to the Board of Directors of the District at a board meeting. Should an award be made, the Board of Directors will authorize staff to execute a contract on behalf of the District. After approval as to form and legality by the District’s legal counsel, the successful bidder and the District’s representative will sign the contract. A copy of the executed contract shall be promptly provided to the Finance Department for proper accounting review. If after notification, the successful bidder fails to execute the contract within ten (10) days, the bid deposit, made in cash, cashier’s check, certified check, or bid bond will be forfeited. 6.2.2 Professional Consulting: The General Manager, or his/her designee, may award purchase orders/contracts for professional consulting services that are within the authorization limits as set by the Board of Directors. Professional Consulting Services are defined as architectural, Engineering, Environmental and any other service as identified within the California Government Code § 4525-4529. Competitive pricing of consulting services must be in accordance with the bidding and pricing procedures of the District as outlined in Section 7.2.4a (Pricing/Bidding Requirements) of this manual. Award shall be made to the consultant whose response to a request for proposal best meets the District’s needs. At the discretion of the Board of Directors or the General Manager, the review of submitted proposals may be made by a Committee established by the Board or the General Manager. For professional consulting contracts exceeding the General Manager’s limit of authorization, a summary of bids together with staff’s recommendation for award must be presented to the Board of Directors of the District at a board meeting. Should an award be made, the Board of Directors will authorize staff to execute a contract on behalf of the District. After approval as to form and legality by the District’s legal counsel, the successful bidder and the District’s representative will sign the contract. A copy of the executed contract shall be promptly provided to the Finance Department for proper accounting review. 6.2.3 Cooperative/ Joint Purchases: The Purchasing and Facilities Manager may utilize cooperative/"piggyback" contracts, multiple award schedules and joint power agreements awarded by Federal agencies, any state, municipality Page 12 of 32 or public agency to purchase goods and services, up to the General Manager’s authorized approval limit or subject to Board of Directors’ approval when the General Manager’s authority i s exceeded. These purchases are exempt from the District’s competitive solicitation requirements so long as the contracts, schedules and agreements are solicited in a manner substantially consistent with District purchasing policies. (Rev 2017-05-03) 6.2.4 Emergency Purchases: In the event of a catastrophic emergency, the guidelines and requirements as set forth in California state statute and in the District’s Code of Ordinance shall prevail over those stated herein. 6.2.5 Materials, Goods, Services, and General Consulting: Purchases of materials, goods and services, the value of which are within the limits authorized by the Board of Directors, may be made by the District’s General Manager or his/her designee. Competitive pricing for materials, goods and services must be in accordance with the bidding and pricing procedures of the District as outlined in Section 7.2.2, 7.2.4, 7.2.5, and 7.2.6 (Pricing/Bidding Requirements) of this manual as applicable. Purchases shall be made from the bidder whose bid best meets the District’s requirements and needs as set forth in the invitation to bid or request for quotation. The Board of Directors of the District must authorize purchases exceeding the General Manager’s authorized approval limit. At a meeting of the Board of Directors, a summary of bids together with staff’s recommendation for the award of a contract/purchase order or the rejection of bids shall be presented. Should an award be made, the Board of Directors of the District will authorize staff to execute a purchase order/contract on behalf of the District. 6.2.6 Petty Cash: The primary purpose of petty cash funds is to reduce costs associated with purchases and expenses in accordance with the District’s financial policies. 6.2.7 Sole Source Purchases: Other than contracts for construction, alteration or repair of District facilities, a contract may be awarded for materials, goods, services, or general consulting without competition when the District’s General Manager or the Board of Directors determines that either the product is designated to match others in use on a particular public improvement, is a unique or novel product application required to be used in the public interest, or where only one brand or trade name is known. Sole source purchases may be made by the District’s General Manager provided the value of the purchase is within the limits authorized for the General Manager by the Board of Directors of the District and the reason for the sole source authorization is documented by the General Manager and retained in accordance with District’s record’s retention policy. The Board of Directors of the District must authorize sole source purchases exceeding the General Manager’s authorized limit. At a meeting of the Board of Directors, staff will present the bid submitted together with a recommendation requesting an award of purchase order/contract to the vendor identified as the sole source. Should an award be made, the Board will authorize staff to execute a purchase order/contract on behalf of the District. 6.2.8 Blanket Purchase Orders: Blanket purchase orders are issued to reduce administrative and operational costs, inventories and paperwork and may be issued for regularly purchased materials, supplies and services. Should a blanket purchase order be issued, the order shall include a description of each material, supply and/or service requested, a unit price for each, the period of time the order shall be in effect, and a statement obligating the vendor to deliver all or a specified part of the District’s usage requirement upon receipt Page 13 of 32 of an authorized release from the District. Not included on the blanket purchase order are specific quantities. Instead of specific quantities, the blanket purchase order shall list an estimate of the quantity of each item that will be used for the period to which the blanket purchase order refers. Blanket purchase orders may not be issued for a period of time exceeding one year unless authorized by the General Manager. 6.2.8.1 Guidelines for Issuing Blanket Purchase Orders: a. Blanket purchase orders may only be issued, changed, or revoked by the Purchasing and Facilities Manager or the General Manager. b. Competitive pricing and vendor selection for blanket purchase orders shall be in accordance with the policies and guidelines as set forth in this manual. c. The Board of Directors must authorize blanket purchase orders exceeding the General Manager’s authorization limit. At a formal meeting of the Board of Directors, a summary of the requested blanket purchase order(s) shall be presented. The summary shall include a description of the materials, supplies, and services required, and total order pricing. Should the Board approve the blanket order(s), they will authorize staff to issue a blanket purchase order on behalf of the District. 6.2.8.2 Guidelines for the Use of Blanket Purchase Orders: a. The supervisor of the employee receiving materials, services, and/or goods released against a blanket purchase order will write the account code/work order information, sign (attesting that the release is authorized and that all goods/materials/services were received and accepted) and forward the receiving (packing slips) document to the Finance Department. Processed shipping documents (coded and signed) must be submitted to the Finance Department no later than the end of next workday from the date items were received. b. In the event that invoiced unit pricing exceeds the unit price indicated on the blanket purchase order, Purchasing will contact the vendor requesting that a corrected invoice be sent to the District and notify them that payment will be withheld pending the receipt of the corrected invoice. c. Should the ordering individual wish the warehouse to take delivery of items released under a blanket purchase order, notification must be given to warehouse staff. Said notification should be made by written memorandum or through e-mail or other electronic form and must include information on the purchase order number assigned to the purchase, what and when goods are to be delivered, and who will ultimately receive the goods. Page 14 of 32 Section 7 – Pricing/Bidding Requirements 7.0 PURPOSE: To provide requirements, policies, and guidelines for the pricing/bidding of purchases within the Otay Water District. 7.1 GENERAL: It is the District’s policy to request competitive pricing from responsible vendors for all purchases exceeding $10,000. Pricing, although important, is not the only factor in determining the overall cost and value of a product. Quality, service and delivery are factors that must also be considered when comparing quotations. It is by weighing these factors that an intelligent decision can be made to purchase the product with the greatest value for the least overall price. (Rev 2017-05-03) 7.2 REQUIREMENTS: 7.2.1 Formal Advertising: Public works purchases, as defined in the State of California’s government and contract code, shall follow the procedure outlined under the California Uniform Public Construction Cost Accounting Act (CUPCCAA) (Sect 22000 et seq. of the California Contract Code and as set by the California Uniform Construction Cost Accounting Commission (CUCCAC). Solicitations must contain a brief description of the goods or services required, state where prospective bidders may obtain plans and specifications and make any required deposits, state the time and place of the bid opening, and state that the District reserves the right to reject one or all bids. (Rev 2016-09-07) (Rev 2016-09-07) 7.2.2 Quotations: For purchases greater than $10,000, excluding public works subject to CUPCCAA or formal bidding, a minimum of three competitive quotations must be obtained. Quotations received may be in written or oral form. Should oral quotations be received, written documentation must be made identifying the bidder’s name, contact name, telephone number, the date of the quotation and the pride bid. Should three quotations not be obtainable, documentation in the form of a notation of memorandum must be provided and attached to the purchase requisition. Where only one price is obtainable, the actions taken to obtain competitive pricing shall be documented and attached to the purchase requisition and the purchase may be made and the requirements of this section shall be satisfied. (Rev 2016-09-07) (Rev 2017-05-03) 7.2.3 Public Works - Construction Public work purchases equal to or exceeding what is authorized under the California Uniform Public Construction Cost Accounting Act (CUPCCAA) (Sect 22000 et seq. of the California Code and as set by the California Uniform Construction Cost Accounting Commission (CUCCAC) must be formally advertised and sealed bids received. (Rev 2017-09-07) The Purchasing and Facilities Manager or the General Manager’s designee, in conjunction with the project manager, and where appropriate, the District’s legal counsel, shall publicly open all sealed bids and tabulate the results. The bid tabulation, along with a recommendation for award contract or possible rejection of bids, shall be forwarded to the District’s General Manager. In the event that the value of the purchase exceeds the General Manager’s signatory authority, a summary of bids shall be presented together with staff’s recommendation for an award of contract or possible rejection of bids to the Board of Directors of the District during a formal board meeting. The Board of Directors will then authorize the execution of the contract on behalf of the District. Page 15 of 32 Award shall be made to the responsive and responsible bidder who has submitted the lowest bid meeting the requirements and criteria set forth in the invitation to bid. After approval as to form and legality of the contract documents by legal counsel, the successful bidder and the appropriate District representative(s) shall execute the contract. A copy of the executed contract shall be promptly provided to the Finance Department for proper accounting review. 7.2.4 Request for Proposals: a. For the Solicitation of Professional Consulting (Engineering): (Rev 2016-09-07) The General Manager, or his/her designee, will establish a review panel to evaluate and rank submittals (proposals) using criteria published in the Request for Proposals package. Documents, invitations, and evaluation of submittals for professional consulting services shall be made in compliance with Government Code Section 4526-4529 and District Policy #21 – Policy for Selection of Professional Consultants. b. For the Solicitation of General Consulting and Services: The General Manager, or his/her designee, shall determine the method for soliciting and evaluating proposals for general consulting and services. The request for proposal must be in written form and must provide sufficient information to clearly identify the work required and provide respondents with a clear understanding of the District’s needs, work specifications, expectations and the criteria that will be used to evaluate submittals. 7.2.5 Two Step Bidding: Where it is considered impractical to initially prepare a purchase description to support an award on price, a request for proposals may be issued requesting the submission of not priced technical proposals. This will be followed by an invitation for bids limited to those bidders whose technical proposals meet the requirements set forth in the first invitation. 7.2.6 Purchases Exempt from Competitive Pricing: The following contract/purchases are exempt from competitive pricing: 1. With Federal, State or Local Agencies, 2. Temporary labor services to fill time-limited employment needs, 3. For the sole purpose of obtaining expert witness for litigation, and 4. That are for legal defense, legal advice, or legal services. 7.2.7 Emergency Purchases: During times when the General Manager has declared an emergency, where the immediate acquisition of materials, goods, and services is required, the purchase of needed materials, goods, and services shall be made in accordance with California state statutes and per the District’s Code of Ordinances. Page 16 of 32 7.2.8 Board Authorized Purchases Exceeding the General Manager’s Authority: (Rev 2017-05-03) (Rev 2017-08-02) a. The General Manager or his/her Designee is authorized to exceed his/her delegated purchasing authority under Section 2 of the Code of Ordinance and purchase the following goods and services without Board approval so long as the overall Board Approved District Budget for Labor and Benefits, Materials and Maintenance and Administrative expenses is not exceeded: 1. Temporary labor services 2. Fuel, gasoline and diesel 3. Sewage Transportation and Processing 4. Water Meters 5. Service and maintenance of the District’s Board adopted sole source Enterprise Resource Planning (ERP) System, Tyler Eden 6. Service and maintenance of the District’s Board adopted sole source Geographic Information System, Environmental Systems Research Institute (ESRI)/GIS 7. Health Benefits, Property, Liability Insurance, Workers’ Compensation and other products and services as provided by Special District Risk Management Authority (SDRMA), Association of California Water Agencies – Joint Powers Insurance Authority (ACWA-JPIA) or any other Board approved provider. (Rev 2020-06-03) 8. Regulatory Fees 9. Service and maintenance of the District’s Board adopted sole source Cityworks® work and asset management system. 10. Service and maintenance of other Board adopted sole and single source enterprise systems, infrastructure and services. 11. Mount Miguel Antenna Site Lease Agreement and Addendums b. The General Manager or his/her Designee is authorized to exceed his/her delegated purchasing authority under Section 2 of the Code of Ordinances and purchase the following goods and services without Board approval so long as the amounts are commensurate with the District’s water revenues for the same time period: 1. Water 2. Gas and electric utility for the operation of the District 3. Chemicals and gasses for the treatment of potable and recycled water. Page 17 of 32 Section 8 – Change Orders 8.0 PURPOSE: To provide guidelines for the initiation and approval of contract change orders within the Otay Water District. 8.1 GENERAL: Change orders may be initiated by the contractor/vendor or by the District. The District’s General Manager or his/her designee must approve change orders as defined in the District’s Code of Ordinances, Section 2.01e. The Board must approve change orders exceeding the General Manager’s authorized limit. Only written change orders are allowed. Page 18 of 32 Section 9 – Authorization to Purchase – Signatory Authority 9.0 PURPOSE: To provide guidelines and protocol for establishing signatory authority for the approval of purchases within the Otay Water District. 9.1 GENERAL: The Board of Directors of the District has sole signatory (ability to sign contracts and approve purchases) authority within the Otay Water District. The Board may, at a regularly scheduled board meeting, establish signatory authorization limit(s) for the General Manager as defined in the District’s Code of Ordinances, Section 2.01c-e. The General Manager at his/her discretion may delegate his/her signatory authority, as he/she deems necessary. Other than as identified in Section 7.2.8 of this Manual, “Board Authorized Purchases Exceeding the General Managers Authority”, delegated authorization limits may not exceed those established by the Board for the General Manager. Delegated authorization must be documented in the form of a memorandum, signed by the General Manager. Included in the memorandum must be a listing of individuals and/or job classification to whom signatory and purchase approval authority has been delegated and the maximum dollar value(s) of said authority. Copies of the memorandum shall be provided to the District’s senior management team and to the Purchasing and Facilities Manager. The General Manager at his/her discretion may allow the Department Chiefs to delegate their signatory authority, as they deem necessary within their departments. (Rev 2017-08-02) Page 19 of 32 Section 10 – Documentation of Purchases 10.0 PURPOSE: To provide standardized guidelines and procedures for documenting the authorization, pricing and award of contracts within the Otay Water District. All purchases exceeding petty cash limit, excluding purchases identified as exempt from this requirement under “Purchases Exempt from Purchase Order Requirement”, shall be required to be documented as prescribed herein. 10.1 GENERAL: As a public agency, the fundamental practice of documenting purchases must be followed. The documentation must provide a record of vendor name, address, contact and telephone number, pricing, authorized purchase approval(s), terms and conditions, consideration, placement of order, receipt of order and authorization of payment. Documentation will be made on a “purchase requisition” form (printed or electronic) together with a purchase order/contract (printed or electronic). 10.2 PROCEDURE: a. A “Purchase Requisition” (requisition) form is an internal control document. It shall be used to record vendor name, address, contact and telephone number, authorized purchase approval(s), pricing, quantities and special terms and conditions. Documentation of competitive pricing may be in the form of a memorandum or note attached to the requisition. For purchases requiring the use of formal bidding/advertising, the bids received will be retained in accordance with the District’s record retention policy. The requisition may be in written or electronic form provided that it is standardized, and immutable. b. When complete, the requisition will be used to produce a purchase order/contract. A copy of the completed purchase requisition will be retained in accordance with the District’s record retention policy. c. The purchase order/contract represents a written agreement between the District and the Vendor. In addition to identifying the District and Vendor, it is used to document terms and conditions. d. The purchase order/contract will be in a form as approved by the District’s legal counsel. e. The purchase order form shall be the used as the District’s primary contract document for material, service, and supply purchases. Typically, purchases of professional engineering services, consulting and major construction require contracts in a form other than a purchase order. In the event a contract in a form other than a purchase order is used, the District’s counsel shall approve it as to form. A purchase order may be issued for control purposes to supplement a contract. In this event, the purchase order will reference the contract document as representing the agreement between the District and vendor. 10.2.1 Purchases Exempt from Purchase Order Requirement: a. The Board has identified the following purchases as exempt from the requirement of a written purchase order/contract: 1. Travel and meeting advances and reimbursements 2. Purchases less than the petty cash limit 3. Prepaid travel expenses, i.e., airfare and hotel 4. Utilities 5. Television and satellite service Page 20 of 32 6. Meal reimbursements 7. Telephone usage charges, including wireless telephones and pagers 8. Postage 9. Classified, legal, and display advertising 10. Petty Cash purchases 11. Mileage reimbursement 12. Memberships and dues 13. Subscriptions and books 14. Permits and fees 15. Customer refunds 16. District credit card reimbursements 17. Employee awards, incentives 18. Employee educational reimbursements 19. Seminars and training 20. Purchases made utilizing Cal Card 21. Contracts or letters of agreement as approved by the General Manager or the Board of Directors b. Completed purchase requisitions may be required, as determined by the General Manager or his/her designee. Page 21 of 32 Section 11 – Special Considerations 11.0 Exceptions to Purchasing Procedures: In specific instances, such as Federal Grants and Assessment Districts, there may be specific requirements in the contract or ordinance relating to the expenditure of such funds. The conditions of such agreements and ordinances shall take precedence over the procedures established in this manual. 11.1 Bonding: a. In addition to any required bid deposit or bond, all construction contracts in excess of $35,000 shall require: 1) A PERFORMANCE BOND in the amount of 100% of the contract price, and 2) A LABOR AND MATERIALS BOND in the amount of not less than 50% of the contract price. b. For construction contracts under $35,000, bonding shall be in accordance with District Policy No. 31, Encouraging Disadvantaged Business Enterprise Firms. 11.2 Encouraging Emerging Business Enterprise: The District’s purchasing practices shall reflect the requirements set forth in District Policy No. 31, Encouraging Disadvantaged Business Enterprise Firms. 11.3 Insurance: a. General, Automobile, and Errors and Omissions: All contracts shall have a requirement for general, automobile, and errors and omissions insurance as applicable to the type of service or work contemplated. The amount and type of insurance required for each type of contract shall be at the discretion of the General Manager in an amount so as to indemnify the District from loss. b. Workers’ Compensation: All public works contracts shall have a requirement for workers’ compensation insurance in an amount as required by law. Additionally, all non-public works contracts shall require workers’ compensation insurance coverage in an amount sufficient to indemnify the District from loss. 11.4 Invoicing: Financial obligations of the District are normally settled on a Net 30 day payment basis. All invoices submitted to the District must include: 1) The vendor’s name, business address and date, 2) The District’s purchase order/contract number and the vendor’s invoice number, 3) The shipment date and/or the date of service, 4) The terms of sale and applicable payment discounts, 5) An itemized description of materials purchased or services performed, including quantities, unit prices, discounts, extensions, and other charges as specified in the purchase order/contract, Page 22 of 32 6) Sales and other taxes and freight charges, itemized separately or as specified by the District. 11.5 Receiving, Inspection and Acceptance: a. All materials, supplies or services furnished shall be exactly as specified, free from all defects and shall be subject to inspection and testing by the District. The method of inspection to be used in any particular procurement shall be commensurate with the specific quality and specification requirements. The Purchasing and Facilities Manager shall be notified immediately if any materials, supplies or services do not conform to specification. In such cases, the Purchasing and Facilities Manager shall take appropriate action to protect the interests of the District. b. Receiving shall be documented on the receiving copy of the purchase order or other electronic form. When all materials, supplies and/or services have been received, the receiving staff will forward the vendor’s shipping document(s) to the Finance Department and indicate (in writing or electronically) that the materials, supplies and/or services have been accepted and that the purchase order is authorized for payment. 11.6 Specifications: a. All purchases of materials, supplies and services shall meet the requirements as published by the District in “Standard Specifications for Water and Sewer Construction”. b. The requesting person shall define specifications for materials, supplies and services not addressed by the above referenced publication. The specification shall include information such as brand or trade names, description of material or method of manufacture, description of performance, purpose and use, physical and chemical properties, and any other information needed so as to give the purchasing department enough information to purchase correctly. For purchases requiring a written specification, it shall be the requisitioning staff’s responsibility to provide a complete specification document. c. All specifications shall be drafted so as to assure the maximum practicable competition for the District’s needs. 11.7 Inventory: General Manager or his/her designee shall identify District property to be inventoried and shall insure that periodic inventory reconciliation is performed. Page 23 of 32 Section 12 – Disposal of Surplus Property 12.0 PURPOSE: To provide a standardized method for disposing of materials, supplies and other property, excluding real property, that is surplus to the needs of the District. 12.1 GENERAL: a. It is staff’s responsibility to keep the District’s inventories as low as possible and to standardize materials, supplies and equipment in order to minimize the number of articles carried in stock while b. Surplus Items - The General Manager shall develop, on an as need basis, an inventory of properties that are surplus to the District’s needs. The General Manager or his/her designee may declare items with a residual value less than $10,000.00 as surplus to the needs of the District and authorize their disposal. Where the residual value of an item exceeds $10,000.00, only the Board of Directors may declare the property surplus and authorize its disposal. c. Items of Little or No Value – Items that have no value to the District and little or no value in the market place except as scrap or for a purpose other than its originally intended use, the General Manager or his/her designee shall have authority to declare said properties trash or scrap and 12.2 PROCEDURE: Once property has been declared surplus it shall be the responsibility of the Purchasing and Facilities Manager, in a manner provided herein and approved by the General Manager, to dispose of the surplus property. All property shall be disposed of “as is-where is”, with no warranty or guarantee as to serviceability or usability and where applicable, paid in full in U.S. currency prior to delivery. District property tags shall be removed from the surplus property prior to its disposal. District employees, as private individuals, may purchase District surplus property by participating in auction sales as prescribed in Section 12.2.1 Auction Sale. 12.2.1 Auction Sale: a. Disposal of surplus property may be accomplished through auction sale. 1) Through consignment of items to a vendor, a private auctioneer, licensed and bonded to do business in San Diego County, to sell on behalf of the District. Where authorized by the General Manager, the Purchasing and Facilities Manager shall enter into an agreement with the vendor that has the potential of generating the most market interest and, therefore, the highest net proceeds for the District. The consignment vendor shall, at its expense, advertise the item for sale and shall accept offers for the District, with the District having final acceptance authority. 2) By advertising for sale in a newspaper of general circulation or in any other manner approved by the General Manager. Newspaper ads shall be placed at least two (2) weeks prior to the sale date and shall identify the property for sale. Sealed bids will be solicited unless otherwise directed by the Purchasing and Facilities Manager and the property will be sold to the highest bidder. Bid security shall be provided by requiring that a ten percent (10%) guarantee accompany each bid or aggregated bid. Such bid security shall be in the form of a certified check, cashier’s check, or money order payable to the order of the District. Payment of the balance of the total Page 24 of 32 bid must be made by the successful bidder within twenty-four (24) hours after the award. In the event the successful bidder fails to pay the balance of his bid, the bid security will be forfeited and the award will be made to the next highest responsible bidder. The successful bidder shall be responsible for all required permits, fees and licenses. The property shall be removed from District premises in a time frame established by the Purchasing and Facilities Manager. 3) By participation in a joint municipal/public agency public auction. Where authorized by the General Manager, the District may dispose of surplus property through participation in a joint municipal/public agency auction. 12.2.2 Sale to Federal, State, and Local Municipalities and Governmental Agencies: a. Where it is in the best interest of the public, surplus property may be sold by the Purchasing and Facilities Manager to municipalities and government agencies in accordance with the follow guidelines. The Purchasing and Facilities Manager shall give preference to local governmental agencies located within the District’s boundary. Page 25 of 32 1) If the estimated fair market value, as determined by the Purchasing and Facilities Manager, does not exceed $10,000, a negotiated sale may be conducted with the governmental agency and sale of the item concluded at the price determined to be a fair and reasonable market price for the item. 2) If the estimated fair market value, as determined by the Purchasing and Facilities Manager, is greater than $10,000 but does not exceed $50,000, the General Manager’s approval shall be obtained prior to any sale. Information provided to the General Manager shall, at a minimum, identify the government entity, the rationale behind the sale at the value, and the manner in which the fair market value was determined. 3) If the estimated fair market value, as determined by the Purchasing and Facilities Manager, is greater than $50,000, Board approval shall be obtained prior to any sale. Information provided to the Board shall, at a minimum, identify the government entity, the rationale behind the sale at that value, and the manner in which the fair market value was determined. 12.2.3 Sale to Republic of Mexico, U.S. Municipalities and Government Agencies: a. When the District has declared items surplus to its needs and the Purchasing and Facilities Manager has determined that the item(s) should be sold in accordance with the guidelines contained herein, such item(s) may be sold to Republic of Mexico, U.S. municipalities and/or government agencies under the following guidelines: 1) Prior to consummating any sale to a Republic of Mexico, U.S. municipality and/or governmental agency, the Purchasing and Facilities Manager shall ensure that right of first refusal for known requirements is offered to local governmental agencies. 2) The Republic of Mexico, U.S. municipality and/or governmental agency shall forward to the Purchasing and Facilities Manager, a written official request which provides the following information: a. Name and address of municipality or governmental agency. b. Name and telephone number of responsible official who can consummate a resulting sale agreement and sign appropriate sale documents. c. Description and quantity of surplus property items desired. d. Statement as to how the items requested will be used by the requesting municipality or governmental agency. 3) If the estimated fair market value, as determined by the Purchasing and Facilities Manager, does not exceed $50,000, the General Manager’s approval shall be obtained. Information provided to the General Manager shall, at a minimum, identify the government entity, the rationale behind the sale at that value, and the manner in which the fair market value was determined. 4) If the estimated fair market value, as determined by the Purchasing and Facilities Manager, is greater than $50,000, Board approval shall be obtained. Information provided to the Board shall, at a minimum, identify the government entity, the rationale behind the sale at that value, and the manner in which the fair market value was determined. Page 26 of 32 12.2.4 Donation of District Surplus Property to Municipalities, Governmental Agencies, and Charitable Organizations: a. Where it is in the best interest of the public, surplus District property of no or De Minimus value, where proceeds of the sale of the property will be less than the cost of the sale of the property, may be donated under the following guidelines to municipalities, governmental agencies, and charitable organizations in lieu of discarding such property: b. The District’s Purchasing and Facilities Manager shall first assess the value of the item and the cost of disposal and make a determination that the item has no value or De Minimus value. c. The requesting municipality, public agency, or charitable organization shall forward to the Purchasing and Facilities Manager a written donation request, approved by its governing board or chief operating officer, which includes the following minimum information: 1. Name and address of municipality, agency, or charitable organization. 2. Name and telephone number of responsible official who will accept the donation, if approved, and sign appropriate donation documents. 3. Description and quantity of surplus property items desired. 4. Statement as to how the items requested will be used by the requesting public agency. 5. Proof of charitable status (501 (C)) organizations as applicable. d. Donation of surplus items requested shall be made to requesting entities giving priority to entities as follows: 1. Public agencies within the District’s boundary 2. Public agencies outside of the District’s boundary 3. Charitable organizations within the District’s boundary 4. Charitable organizations outside of the District’s boundary e. Donation of District owned surplus property of no or De Minimus value may be approved by the Purchasing and Facilities Manager when the estimated total fair market value of the donation, as determined by the Purchasing and Facilities Manager, does not exceed either $25 per item or $500 per lot. f. Donation of District owned surplus property of no or De Minimus value may be approved by the General Manager when the estimated total fair market value, as determined by the Purchasing and Facilities Manager, does not exceed $10,000. g. Donation of District owned surplus property of no or De Minimus value, where the total estimated fair market value of the donation, as determined by the Purchasing and Facilities Manager, exceeds $10,000 shall be made by the Board. h. For the purpose of this policy, charitable organizations shall mean a non-profit organization exempt from taxation under the provisions of the Internal Revenue Code, 26 U.S.C. 501 (C), whose primary purpose is public service or a Republic of Mexico registered public organization promoting economic and social well-being in the border region. i. In consideration for the donation and as a condition of transfer, the recipient of the donated surplus shall execute a release and indemnification agreement satisfactory to the District’s General Counsel. Page 27 of 32 12.2.5 Exchange or Trade-In: Where deemed by the Purchasing and Facilities Manager to be in the best interest of the District, the surplus property may be exchanged or traded in on new supplies and equipment. Trade-in values must be documented and retained in accordance with the District’s records retention policy. 12.2.6 Disposal as Scrap: In the case of surplus property that has been determined by the General Manager or their designee to be trash or scrap with no or De Minimus value, and where no governmental or non-profit organization expresses interest in the item, the Purchasing and Facilities Manager may dispose of the property in any manner deemed appropriate. Where property is disposed of as scrap, full records of such disposal shall be kept. Page 28 of 32 Section 13 –Credit Cards 13.0 PURPOSE: To provide procedures and guidelines for the issuing and use of credit cards and for the administration of the Cal-Card Program within the District. 13.1 GUIDELINES: a. The General Manager is authorized to be issued and to issue credit cards and to establish revolving credit accounts with vendors where it is in the best interest of the District, in accordance with applicable statutes and laws. b. Where feasible, the issuing of credit cards shall be through the State of California Cal Card Program. c. Use of credit cards shall be limited to appropriate purchases as defined herein. d. Purchases utilizing credit cards shall be made in accordance with this policy and established purchasing procedures and guidelines as defined in the District’s Purchasing Manual. This includes, but is not limited to complying with the District’s requirements related to authorization and pricing/ bidding. e. The intent of utilizing credit cards, and in particular Cal-Card credit cards, is to: 1. Reduce costs associated with the accounts payable function, 2. Reduce payment time to District suppliers, 3. Provide a means to take advantage of time sensitive price discounts, 4. Enhance District operations and reduce cost, 5. Reduce dependency on petty cash disbursements, 6. Provide for expedient purchases during emergencies. 13.2 DEFINITIONS: a. Cal-Card Program: A system developed by the State of California (under Governor Wilson’s Executive Order W-73-94) designed to facilitate public credit card purchases up to $50,000. b. I.M.P.A.C. Government Services (IMPAC): Credit Card provider contracted with the State of California, through a Master Service Agreement, to provide Visa Credit Card service; maintain master file and account for each card holder; send monthly statements to each cardholder, approving official, and agency or district accounting office. c. District Representative: The District’s contact person for program and accounting office functions; determines which District personnel receives cards; establishes card limits including purchase restrictions; establishes District’s procedures and guidelines for participation in the Cal-Card Program. d. Cardholder: Person(s) designated by the District’s Representative as being authorized to make purchases using credit cards and/or the Cal-Card Program within District procedures and guidelines. e. Approving Official: Person(s) designated by the District’s Representative to review, approve, and/or certify monthly cardholder billing statements and adherence to District purchasing and budgetary procedures; forwards monthly statements to the District’s Page 29 of 32 accounting office. f. Accounting Office Representative: Person designated within the District to receive and process credit card statements and documentation. g. Credit Card Limit: The transaction and spending limit established by the District Representative for a Cardholder. 13.3 PROCEDURE: Purchases made utilizing credit cards and/or Cal-Cards shall comply with the District’s requirements, guidelines and procedures as defined within the District’s Purchasing Manual. 13.4 APPROPRIATE PURCHASES: a. The General Manager or his/her designee shall determine which goods and services are appropriate for purchase using credit cards and may, in the best interest of the District, restrict where, when and how credit cards are utilized. The value of a purchase made using credit cards is limited to the signatory authority of the General Manager and must be categorized as one of the following: 1. Exempt from the requirement of a purchase order/contract, 2. Made under the auspices of a blanket purchase order, 3. Documented and approved in a form approved by the General Manager, 4. Made under an emergency declared by authority of the General Manager. 13.5 RESPONSIBILITIES UNDER THE CAL_CARD PROGRAM: 13.5.1 District’s Representative: a. The General Manager or his/her designee is the District’s Representative relative to the Cal- Card program. b. The District’s Representative shall be responsible, for: 1. Completion and processing of State required documentation for participation in the Cal- Card program, 2. Establishment of credit card limits (Credit card limits shall not exceed the purchasing authority of the General Manager as granted by the Board of Directors and those limits established by the General Manager under his/her Signatory Authority Delegation Schedule), 3. Identification of Cardholders, Approving Officials, and Accounting Office Representative, 4. Overseeing of the Cal-Card Program within the District, 5. Insuring adherence to the District’s purchasing policies, procedures and practice. 13.5.2 Cardholder: a. The Cardholder shall be responsible for: 1. Adhering to the procedures and guidelines set herein, 2. Reviewing his/her monthly statements for accuracy, 3. Retaining, reconciling, and attaching sales slips and, when applicable, approved requisitions to his/her monthly statement, Page 30 of 32 4. Providing and documenting account code information on monthly statements by transaction, 5. Submitting his/her reconciled statement, with attachments, to his/her Approving Official in a timely manner. 13.5.3 Approving Official: a. The Approving Official shall be responsible for: 1. Adhering to the procedures and guidelines set herein, 2. Reviewing and approving for payment the monthly statements for those cardholders under his/her supervision, 3. Insuring that all information required for payment, including account coding, of monthly statements is provided to the Finance Department, 4. Requesting additional documentation if necessary, 5. Forwarding all statements to the Finance Department in a timely manner. 13.5.4 Finance Department Representative: 1. The Finance Department Representative shall be responsible for: 1. Adhering to the procedures and guidelines set herein, 2. Receiving consolidated monthly statements, 3. Receiving reconciled statements from Approving Officials, 4. Reconciling statements in accordance with District procedures and policies governing the accounts payable function. Page 31 of 32 Appendix 1. Otay Water District Board of Directors Policy No. 21 2. Otay Water District Board of Directors Policy No. 31 3. Otay Water District Memorandum -Signatory Authority Delegation (Revised as necessary by the General Manager) Page 32 of 32 Revisions 1. Codified October 2009 2. October 2014 –Amend Section 12 - Disposal of Surplus Property by Board action, 3. April 2016 – Amend Section 7.2.8 Board Authorized Purchases Exceeding the General Manager’s Authority by Board action. 4. August 2016 – Correction of minor spelling errors. Board action not required. 5. September 2016 – CUPCCAA adoption. Section 7 – Pricing/Bidding Requirements by Board action. 6. May 3, 2017 - Section 2 – Organization; 6.2.3 Cooperative/ Joint Purchases; Section 7 – Pricing/Bidding Requirements; 7.2.8 Board Authorized Purchases Exceeding the General Manager’s Authority; miscellaneous formatting by Board action. 7. June 7, 2017 – Added: Section 7.2.8, a, 8. Regulatory Fees 8. August 2, 2017 – Modified: Section 7.2.8, a, 7 Liability Insurance and other services added; Added: Section 7.2.8, a, 9. Cityworks, 10. Enterprise Systems, 11. Antenna Lease Agreement; Modified: Section 2 – Organization: Assistant GM deleted; Modified: Section 9 – Authorization to Purchase – Signatory Authority: Assistant GM deleted 9. June 3, 2020 – Appended Section 7.2.8, a, 7 to include: Association of California Water Agencies – Joint Powers Insurance Authority (ACWA-JPIA) or any other Board approved provider. STAFF REPORT TYPE MEETING: Regular Board Meeting MEETING DATE: May 11, 2022 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 2022 Calendar of Meetings GENERAL MANAGER’S RECOMMENDATION: At the request of the Board, the attached Board of Director’s meeting calendars for 2022 is being presented for discussion. PURPOSE: This staff report is being presented to provide the Board the opportunity to review the 2022 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 Meetings for 2022 G:\UserData\DistSec\WINWORD\STAFRPTS\Board Meeting Calendar 5-11-22.doc AGENDA ITEM 7b Board of Directors, Workshops and Committee Meetings 2022 Regular Board Meetings: Special Board or Committee Meetings (3rd Wednesday of Each Month or as Noted) January 5, 2022 February 2, 2022 March 2, 2022 April 6, 2022 May 11, 2022 June 8, 2022 July 6, 2022 August 3, 2022 September 7, 2022 October 5, 2022 November 2, 2022 December 7, 2022 January 19, 2022 February 16, 2022 March 16, 2022 April 20, 2022 May 18, 2022 June 15, 2022 July 20, 2022 August 17, 2022 September 21, 2022 October 19, 2022 November 16, 2022 December 21, 2022 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: May 11, 2022 SUBMITTED BY: Jose Martinez 0B0B0BGeneral Manager W.O./G.F. NO: N/A DIV. NO. N/A APPROVED BY: Jose Martinez, General Manager SUBJECT: 1B1B1BGeneral Manager’s Report GENERAL MANAGER • UUUDistrict’s Response to COVID-19 PandemicUUU –The District has had no impacts to its water supply and has maintained a continuity of operations and services during the challenging and dynamic environment. Staff continues to monitor and provide updates relating to responding to this pandemic, as needed, including but not limited to water and wastewater services, supplies, operations, finances, and communication. The District remains committed to the safety of the public and its employees who continue to provide the public with essential services. Staff continue to monitor and comply with all Federal, State, and Local orders and guidelines. •The Cuyamaca College Center for Water Studies’ fifth annual Women in Water Symposium was held virtually on March 30 and April 6. The District sponsored the event and Communications Officer Tenille Otero participated on the planning committee. The symposium hosted 15 speakers and 140 attendees. Eight District staff attended the symposium. Topics included communication skills in a male-dominated industry, a keynote panel with women general managers and executives, a panel discussing a variety of water-related positions, juggling and managing work-life balance, diversity and inclusion, and personal branding. The District’s Meter Services Supervisor Shannon Coffin spoke on one of the panels. In addition, this year for the first time, District staff recommended that the funds from the event go to the Mark Watton scholarship and the committee concurred. Through the event the symposium raised more than $3,500 for the scholarship. AGENDA ITEM 8 2 ADMINISTRATIVE SERVICES: GIS: • New Ortho Data – As in past years, the District participated in a joint effort with other San Diego County agencies to acquire ortho images, or aerial imagery. The group participation saved the District over $10,000 in service fees. The newly acquired image was delivered to GIS staff and have begun processing and integrating the data. The process includes creating mosaic datasets, setting up image services with two different projections, creating scale levels, etc. The new image will be available at the end of the month via the GIS Dashboard, along with other GIS related applications. Human Resources: • Deferred Compensation Plan Financial Advisor/Consultant – The District is at the end of a three-year contract and conducting a Request for Proposal for the District’s Deferred Compensation Plan Financial Advisor/Consultant. Findings and recommendations will be presented in an upcoming Board meeting. The consultant works with a District committee to select investment options and the committee and consultant meet on a semi-annual basis to review and monitor for performance of the investment options. • Recruitments/New Hires: o The Reclamation Plant Operator and Electrician positions were filled in April. o The District is or will be recruiting for the following positions: ▪ Meter Maintenance Worker I/II ▪ Utility Worker I/II ▪ Chief Engineer ▪ SCADA Instrumentation Technician/Senior SCADA Instrumentation Technician ▪ Human Resources Manager ▪ SCADA/Pump/Electrical Supervisor IT Operations: • ERP Replacement – Staff hosted a number of Tyler Munis demos this month. Munis is Tyler’s upgraded ERP offering. The District's current ERP, Tyler Eden, has an end-of-life or sunset date of March 2027. In attendance were staff from Admin, Finance, Engineering, HR, Purchasing, and IT. Improved financial and revenue management, employee on-boarding, timesheet, enhanced utility billing, business analytics, and permitting are some of the highlights of the revised 3 version. The product demonstrations are preliminary and for evaluation purposes only. • Monthly Cybersecurity Safeguards – The Agency's external cyber environment is monitored and analyzed by the Cybersecurity and Infrastructure Security Agency (CISA). CISA evaluates the Agency's exposure to external threats once a month using external vulnerability scanning, risk assessment, and the architectural design report validation. The Agency continues to satisfy these criteria, according to the March evaluation. Purchasing & Facilities: • Concrete Shed Relocation for Staff Security and Safety – Utility Maintenance (UM) staff requested that the pallets of concrete and UM equipment currently stored in the Warehouse be relocated to a new structure in the Operations equipment parking lot east of the hazardous materials storage area. Accessing the materials at their current location creates traffic, safety, and security concerns in that the security gate must be held open and UM trucks and staff create a hazard for vehicles entering and exiting the Operations facility, while UM staff are loading trucks and trailers with equipment and materials. Facilities submitted a design to both UM and Engineering for review, comment, and approval after which AF Concrete was contracted to construct the foundations and block portions of the shed after which Facilities will install the frame elements then contract out rollup door and roofing installations. Safety & Security: • Hazard Mitigation Plan Development – The internal Hazard Mitigation team is finalizing the draft District's mitigation plan (Annex), a living document that guides action over the next five years. Again, the District is participating this year to be eligible for pre- disaster funding such as the FEMA Hazard Mitigation Grant Program. Funding can help rebuild, expedite reimbursements, or mitigate future disaster losses throughout our service area. The plan is scheduled to be finalized in June 2022 and sent to the Board for approval. • Cal/OSHA COVID-19 Prevention Emergency Temporary Standards (ETS) – On April 21, 2022, the Cal OSHA Standards Board approved the final version of the state's COVID ETS. Summary of changes includes removing the differing requirements for vaccinated and unvaccinated employees. The changes also moved away from the use of partitions and six feet (6’) of physical distancing, 4 emphasizing improving outside air supplies and air filtration. Cleaning and disinfecting requirements also have been removed in light of data that show it is unnecessary. Requirements for masking are relaxed and are now triggered by orders from the California Department of Public Health (CDPH). CDPH requires masks in emergency shelters, cooling and heating centers, health care settings, correctional facilities, detention centers, homeless shelters, long-term care settings, and adult and senior-care facilities. Protections during outbreaks have been improved to concentrate efforts where the risks are greatest. • Emergency Management - WebEOC Monthly Exercise – Staff conducted the recommended Water Emergencies Collaborative's WebEOC April Test (monthly WebEOC exercise). The EOC group assumed a regional emergency had occurred and simulated a made-up event. Staff practiced accessing the ICS 209 – Situation Summary Report; reviewed, processed, and posted it on the Water Hub as a "Test". • County of San Diego Full Scale Exercise – The County scheduled its third exercise planning meeting to be held in January 2023. The last meeting objectives were discussing thresholds for Emergency Operations Center activation, incorporating the water agencies into the exercise plan, cities and agencies' participation, developing the master scenario events list, and the simulation inject. • Safety Training – Water Operations staff participated in Confined Space Entry and Gas Detection Refresher training. UUFINANCE: • Chula Vista Billing Services Rate – Effective July 1, 2022, in accordance with the Agreement to Provide Customer Water Consumption Data and Sewer Billing Services to the City of Chula Vista, the District’s fee to the City for sewer billing and collection services is increasing from $1.18 per account to $1.24 per account. • COVID-19 FEMA Update – CalOES has completed their review of the invoices and expenses related to the eligibility period of September 14, 2020 to December 31, 2021. Finance updated the grant submittal with CalOES’s recommendation and submitted the expenses to FEMA on April 7, 2022. The eligible expenses for this period total $49,653. The expenses related to March 2020 to September 13, 2020, are still under review with CalOES. CalOES has agreed to setting up a governmental review with FEMA to expedite grant funding. 5 • Clubhouse Drive and South Greensview Drive Recycled Lateral Break (July 25, 2021) Update – Approximately 431 feet of roadway was damaged due to the recycled main break on Clubhouse Drive, near South Greensview. The repair and restoration work were completed in August 2021, with final acceptance and other related items completed in February 2022. On April 8, 2022, the District received an expense reimbursement of $169,394.60. This amount covers all external costs such as paving, permits, and road repair, and internal costs of staff time. The total cost including unreimbursed overhead and fringe and vehicle use was $184,509.38. • Lakeview HOA Hydropneumatic Pump Station – The District, under Agreement with Lakeview at Highlands Ranch Homeowners Association (HOA), operates and maintains the dedicated hydropneumatic pump station that serves the HOA. The Agreement dated May 2, 2001, states that each year the District shall provide to the HOA a budget for the estimated operating and maintenance (O&M) costs for the pump station. Such budget shall be provided no later than July 1 of each year. Additionally, the HOA shall pay to the District’s Replacement Reserve fund a monthly amount to be increased 10% per year until the Replacement Reserve is fully funded. Finance has completed the FY 2023 annual O&M budget calculation and reserve computation for the maintenance and replacement of the dedicated pump. The annual budget notice was issued on April 13 to the HOA notifying the HOA of the new monthly billing amounts. • Disconnection for Non-payment – Staff continues to modify the procedures for the third month of disconnections. Currently, staff is disconnecting customers who owe $100 (tenant) or $200 (owner) over 60 days past due. Staff anticipates that we will move to our normal lock process owing over $75 (tenant) and $120 (owner) over 60 days past due) next month. As of April 13, there are 165 active payment arrangements on file. • Low Income Household Water Assistance Program (LIHWAP) – Staff continues to monitor the rollout of the LIWHAP program. Otay has enrolled through the program’s payment processor, Horne LLC, to receive funds electronically. The state estimates the program will begin in May or June. • Wastewater Arrearages – Staff is awaiting wastewater arrearage funds. It is estimated that funds will be dispersed in May. The District applied for approximately $21,000 in arrearage funding for its own sewer customers. The City of Chula Vista has applied for approximately $110,000 for their sewer customers who are billed by the District. 6 UUFinancial Reporting: • The financial reporting for March 31, 2022 is as follows: o For the nineth month ending March 31, 2022, there are total revenues of $75,862,839 and total expenses of $81,210,873. The revenues exceeded expenses by $3,007,997. • The financial reporting for investments for March 31, 2022 is as follows: o The market value shown in the Portfolio Summary and in the Investment Portfolio Details as of March 31, 2022 total $98,205,405 with an average yield to maturity of 0.654%. The total earnings year to date are $387,872. ENGINEERING 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. The District’s project consultant’s (Murraysmith) revised preliminary design report addressing Vista Diego Road distribution piping replacements was finalized November 30, 2021. Murraysmith delivered their 30% design submittal January 22, 2022 and District staff returned comments the week of February 14, 2022. This project is within budget but is behind schedule due to consultant staffing issues. Staff are evaluating completing the remainder of the project with District staff. (P2639 and P2680) • 1090-1 Pump Station Renovation – This project includes renovation of the existing Pump Station, including pump replacement and addition of a third pump, which serves the small 1090 Pressure Zone, containing approximately thirty-three (33) potable water meters and seven (7) hydrants. Award of the contract to Cora Constructors was authorized at the November 2020 Board Meeting. Notice to proceed was issued on January 8, 2021. The project is substantially complete as of January 14, 2022. A budget adjustment of $50,000 was required under the General Manager’s authority to cover additional construction administration and SDG&E coordination. Project closeout is underway. (P2174) • 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 7 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 finalization of pre- procurement documents is in progress to obtain quotes so improvements can be designed around the particular equipment. Preparation of the preliminary design report is also in progress. (R2117) • Melrose Ave and Oleander Ave PRSs and 980 Reservoirs Altitude Valve Vaults – This project involves the replacement of two (2) 1960’s era pressure reducing stations in Chula Vista and the renovations of the 980-1 & -2 Reservoirs altitude valve vaults. The Board approved awarding a contract to CCL Contracting at the May 5, 2021 Board Meeting. Submittal review started in June and a Notice to Proceed was issued on July 1, 2021; the project has been extended for seventy-five (75) additional days due to submittal and material ordering delays and the current project completion date is established as June 11, 2022. Public outreach advising of the project status continues to be made. Improvements at the 980-1 vault have been completed. The project is on schedule and within budget. (P2605, P2627, & P2671) • 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 60% design drawings were reviewed and returned to NV5 for the continuing work towards final design. Permitting for potholing of existing utilities at projected crossings is in progress. Consideration was given to potentially using trenchless installation, but several drawbacks and limitations eliminated it from selection. Traffic control design is being handled through the As-Needed Traffic contract. (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. Also 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 with the construction contract approved by the Board at the April meeting. A limited notice to proceed is expected in May 2022 to begin material acquisition. The project is within budget. (P2612 & P2616) 8 • 1200 Pressure Zone Improvements – Phase II – The project consists of the replacement of existing pump station discharge header, pressure relief, suction manifold, and yard piping improvements, and all other work and appurtenances in accordance with the contract documents. Notice to proceed was issued on November 29, 2021 and project completion date is set for July 27, 2022. After completion of submittals and the bulk of material procurement, the contractor, Jeanette Company, Inc. mobilized to the site the week of April 11, 2022. The project is on schedule and within budget. (P2653) • 850-1 & 1200-1 Reservoirs Interior/Exterior Coating and Upgrades – Capital Industrial Coatings, Inc. (Capital) has completed the recoating of both the 850-1 and 1200-1 Reservoirs. The 850-1 was returned to service on December 1, 2021, and the 1200-1 was returned to service on December 3, 2021. Capital completed the punch list items to close out the project. Project NOC has been sent to the County for recordation. (P2543 & P2533) • 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. At the May 2021 Board Meeting, Richard Brady and Associates (Brady) was awarded a professional services agreement to be the design engineer on the project. The Basis of Design Report and 30% design were delivered on March 4, 2022. Staff’s comments were returned to Brady and the design continues to move toward 60%. The RFP for VE/CM/CR Services was advertised, interviews were held March 24, 2022, and the EO&WR Committee has recommended the award to Michael Baker International as a consent item for the May 11, 2022 Board meeting. The project is on schedule and within budget. (P2040 & P2642) • 458-1 Reservoir Interior/Exterior Coating and Upgrades – This project consists of removing and replacing the interior and exterior coatings of the 458-1 (0.8 MG) Reservoir, along with providing structural upgrades, to ensure the tank complies with both state and federal OSHA standards as well as the American Water Works Association and the Health Department standards. Advanced Industrial Services (AIS) was awarded a construction contract at the November 3, 2021 Board meeting. Project information was sent to the neighboring customers on December 10, 2021. AIS mobilized to the site January 5, 2022 and the structural improvements were completed on February 18, 2022. AIS has completed the recoating of the interior roof, shell and floor. Work during the month of May will consist of constructing containment around the exterior of the tank in preparation to recoat the exterior. The project is on schedule and within budget. (P2593) 9 • SR-11 Utility Relocations – This project consists of relocating several District potable water pipelines located in Otay Mesa Road, Sanyo Avenue, Enrico Fermi Drive, Alta Road, and within District easements. The first two rounds of relocations (Caltrans Utility Agreement Numbers 33592 and 33622) were completed in FY 2016. The District entered into Utility Agreement No. 33718 for the relocations in Enrico Fermi Drive and Alta Road on July 20, 2018 and Caltrans began construction FY 2020. District potable water facility relocations are complete except that Caltrans’s contractor (Skanska) is still working on punch list items including bid document drawing redlines for the District’s consultant (NV5) to complete record drawings. Caltrans delivered its third reimbursement check to the District in the amount of $90,322.63 on April 18, 2022. Utility Agreement No. 33718 reimbursements to date total $602,700.00. The project is on schedule and within budget. (P2453) • Recycled Water Pipeline Cathodic Protection Improvements – This project includes repairs to existing cathodic protection systems, such as anode replacement and cathodic test station repairs for recycled water pipelines located in the Central Area. The project advertised for bid in March 2022 and project completion is anticipated in January 2023. (R2146) • FY 2022 Sewage Flows to Metro vs Planned Capacity – The Amended and Restated Agreement was signed by the City on July 22, 2021. The effective date of the agreement is August 22, 2021, one month after the agreement was signed. Per the terms of the agreement, tracking for flow, chemical oxygen demand, and suspended solids begin Fiscal Year 2023, the year after the effective date of the agreement. The treatment plant continues to operate normally this fiscal year. At this time, no planned interruptions of operation are expected to cause the District to exceed the planned Metro capacity of 139 MG (0.38 MGD) that goes into effect next fiscal year with the Metro amended agreement. 10 • Summary of Budgeted and Sold Meters and EDUs for Fiscal Year 2022 up through March 30, 2022: Water System Operations (reporting for March and April): • On Wednesday, March 2nd, staff assisted the Engineering Inspections section with a turn on bacT sample, for the new Fuerte Estates Ranch development in El Cajon, to tie in a new section of the distribution system to the existing water main. After the sample passed, the new water distribution system was put in service to feed new development project. • The following events occurred on Thursday, March 3rd: o Staff met with Helix Water District (Helix) to flush the Blossom Lane water interconnection between Otay and Helix. Staff used this interconnection for a planned shutdown for valve replacement in the area on March 17th. This interconnection is bi-directional which allows both agencies to accommodate flows during emergency situations and both agencies benefit from this interconnection. o An unplanned power outage affected the 870-1 Pump Station, 870-2 Pump Station, Low Head Pump Station, and 870-1 Reservoir. The backup generators supplied power during this outage and was APCD compliant. Staff requested reliability letters from SDG&E for proper generator permit documentation. Power outage lasted approximately 10 to 15 minutes. During this power outage, District customers did not experience water outages. o SCADA staff performed annual flow meter calibration to the 450 Recycled inflow, TLOPS #1, TLOPS #2, and the Tijuana, Mexico interconnection meter. This is done to ensure the flow meters are working accurately. These meters are used for billing purposes and accuracy is essential. • On Thursday, March 10th, contractor Jennette Company Inc., completed the 520 Pressure Zone chemical feed mixer/injector installation at the Regulatory site. This chemical feed mixer/injector allows the District to increase chloramines residual to the water and increase water quality. The old mixer/injector had reached the end of its useful life and a CIP was put together to replace with a new mixer/injector. Date Meters (Budgeted) Meters Sold (Actual) EDUs (Budgeted) EDUs Sold (Actual) Total $ Collected (Budgeted) Total $ Collected (Actual) March 2022 15 14 25.3 41 $170,833 $445,330 Totals FY 2022 135 125 227.3 498 $1,537,500 $5,892,207 11 • The following events occurred on Monday, March 14th: o A pilot water quality analyzer was put in service at the 624-3 Reservoir. This pilot water quality analyzer is used to identify a replacement analyzer for the Hach APA 6000. The manufacturer is no longer manufacturing the APA 6000 and the District will need to eventually look at replacement water quality analyzers. The analyzers are a crucial piece of equipment that monitors water quality at strategic areas of the distribution system. o Staff performed a planned shutdown for Engineering Inspections section, to tie-in a new section of the 12-inch main on the new development area for Long Star Road in Otay Mesa. This shutdown affected three meters, two irrigation meters, and one domestic meter. The shutdown lasted nine and a half hours and one water trailer was onsite for the affected domestic meter. • On Friday, March 16th, the 10th annual leak detection campaign was completed with one leak found. The leak was repaired by the District’s Meter Services section. This survey is a good indication of the status of the District’s water distribution system for the area surveyed. The Operations Department will continue to monitor emerging technologies related to leak detection to either supplement the existing program or develop an even more comprehensive assessment program. The Operations Department will also provide the Board with an informational update to recap the success of the program at an upcoming Board meeting. • On Thursday, March 17th, staff performed a planned shutdown to replace five water distribution system valves in the Dorchester Street and Darby Street area in Spring Valley. The valves were identified with excessive leak-by during routine valve maintenance. Water isolation valves are critical components of a water distribution system for separating pipe segments from the network for repair and maintenance purposes. The shutdown lasted nine and a half hours and 109 meters were affected during this event. Four water trailers were available for affected meters. The Blossom Lane interconnection with Helix was utilized to minimize the number of affected customers. • On Monday, March 21st, San Diego County Water Authority (CWA)started their pipeline 4 inspection. During this inspection, all CWA connections supplying water to the District were unavailable. The District relies on Helix to provide water to the northern portion of the District’s customers and the City of San Diego provides water to the southern portion of the District, using the District’s Temporary Lower Otay Pump Station. The CWA shutdown lasted eight days and the inspection of pipeline 4 went well with no major issues found. • On Monday, March 28th, contract Potable Divers, performed the annual floating cover reservoir inspection to 711-3, 624-1, 570-1, and 870- 1, with no issues noted. This inspection is done to ensure all components of the reservoir liners are in proper operation. 12 • On Tuesday, March 29th, Reclamation Plant Supervisor participated in an interview panel for Vallecitos Water District for their recruitment of a Senior Wastewater Operator. • During the month of March, Fleet staff participated in the following events: o Contactor, OT Electric, ran a dedicated 240 VAC power to Pump Engine 2 and 4 at 870-2 Pump Station to power the engine coolant heaters. The coolant heaters will aid in more reliable start-up of natural gas engines during sub-60-degree weather. o Staff replaced a right-angle drive for Pump Engine 1 at the Reclamation Plant due to an unexpected bearing failure of the existing unit. o APCD conducted Annual Operational Inspections of nine emergency standby genset and pump engines at eight different sites throughout the District. Annual inspections are conducted to ensure compliance with the APCD permit to operate. Items reviewed often include verification of correct engine serial number between and engine and permit, engine hour meter reading, documentation of engine operating hours for both permitted and emergency use, verification of emergency use if related to a power outage from the utility (SDGE) via a printed outage alert, and documentation of user (District) routine inspection, maintenance, and testing for the 36 months. o Staff conducted an annual APCD emissions inventory (hours ran and fuel consumed) for five engines at four sites throughout the District. Emissions inventory is routine and rotating, meaning, three to five different engines will be checked each year for hours run and amount of fuel consumed in different areas throughout the county. The District’s emissions are just one piece of a larger picture the APCD looks at in their database from various sources. o Staff assisted Pump Electrical section in the replacement of the emergency lighting Automatic Transfer Switch (ATS) at the 832-1 Pump Station, after the ATS was discovered to be defective during an annual site test. An automatic transfer switch (ATS) is a device that automatically transfers power supply from its primary source (utility-SDGE) to a backup source (emergency stand by generator) when it senses a failure or outage in the primary source. • On Thursday, April 7th, staff performed a planned shutdown to replace eight water distribution system valves in the Osage Drive and Tarleton Street area in Spring Valley. The valves were identified with excessive leak-by during routine valve maintenance. Water isolation valves are critical components of a water distribution 13 system for separating pipe segments from the network for repair and maintenance purposes. The shutdown lasted 12 hours and 49 meters were affected during this event. Four water trailers were available for affected meters. • On Saturday, April 9th, staff repaired a broken shut one-inch curb stop at 989 Paseo Del Paso in Chula Vista. The service line is poly and staff will return to replace from main to a meter. Staff proactively replaces poly services throughout the District to eliminate significant street damage in the event that a poly service has a complete failure. The higher pressure within the distribution system has caused extensive street damage in the past. • On Wednesday, April 13th, Reclamation Plant staff assisted with the delivery of seed sludge to the US Navy SERE Camp, located in Warner Springs, in starting up their wastewater treatment plant. Black Gold Industries (BGI) was the hauling company that delivered the sludge. Seed Sludge is the mass of sludge that contains populations of microorganisms that is used to blend with fresh wastewater to activate the process of biological decomposition more rapidly. • On Monday, April 18th, the reservoir floating cover bi-annual maintenance was started on 711-3, 624-1, 571-1, and 870-1. This maintenance is performed to ensure the floating cover liner is in good working order and perform any needed maintenance on floating cover appurtenances. This maintenance will prolong the floating cover liner’s useful life. Purchase and Change Orders: • The following table summarizes purchases and change orders issued during the period from March 16, 2022 through April 20, 2022 that were within staff signatory authority: Date Action Amount Project Contractor/ Consultant/Vendor 03/17/2022 P.O. $7,268.92 CRADLEPOINT NETCLOUD ANNUAL SUBSCRIPTION LICENSE RENEWAL GHA TECHNOLOGIES, INC 03/28/2022 P.O. $967.48 DENTAL BENEFITS ADMINISTRATION (MARCH 2022) PBIA 03/28/2022 C.O. $14,094.00 MELROSE AVE & OLEANDER AVE 458/340 PRS REPLACEMENT/980 RESERVOIRS ALTITUDE VALVE VAULTS RENOVATION (P2605, P2627, P2671) CCL CONTRACTING 14 03/30/2022 C.O. $7,200.00 458-1 RESERVOIRS INT/EXT COATING & UPGRADES (P2593) ADVANCED INDUSTRIAL SERVICES 03/30/2022 P.O. $73,552.54 VALVE REPLACEMENT PROGRAM – PHASE 1 (P2610) FERGUSON WATERWORKS # 1083 04/05/2022 P.O. $9,500.00 DATACENTER & NETWORK SUPPORT CONSULTING SVCS TORO NETWORK SERVICES CORP 04/05/2022 P.O. $19,668.96 1004-2 RESERVOIR INTERIOR/EXTERIOR COATING & UPGRADES (P2567) DAWSON COMPANY 04/06/2022 P.O. $87,319.77 FY2022 WORKERS' COMP PROGRAM (QTR 3) ACWA JPIA 04/07/2022 P.O. $2,500.00 DENTAL BENEFITS ADMINISTRATION (CY2022) BENEFITS COORDINATORS CORPORATION 04/08/2022 P.O. $7,550.00 MOWING SERVICES AT CENTRAL AZTEC LANDSCAPING, INC 04/12/2022 P.O. $10,000.00 LIGHTING & ELECTRICAL INSTALLATION/ MAINTENANCE OT ELECTRIC 04/14/2022 P.O. $8,000.00 PROFESSIONAL SERVICES - SERVER UPGRADE PROJECT NTH GENERATION COMPUTING, INC 04/18/2022 P.O. $2,682.13 1004-2 RESERVOIR INTERIOR/EXTERIOR COATING & UPGRADES (P2567) SOUTHLAND PIPE CORP 04/20/2022 P.O. $26,645.14 VALVE REPLACEMENT PROGRAM - PHASE 1 (P2610) FERGUSON WATERWORKS # 1083 04/20/2022 C.O. $17,075.00 MELROSE AVE & OLEANDER AVE 458/340 PRS REPLACEMENT/980 RESERVOIRS ALTITUDE VALVE VAULTS RENOVATION (P2605, P2627, P2671) CCL CONTRACTING 15 Water Conservation and Sales: • Water Conservation – March 2022 usage was 5% lower than March 2013 usage. Since March 2021, customers have saved an average of 7% over 2013 levels. • Conservation 2020 vs Present – On July 8, 2021, Governor Gavin Newsom called on Californians to voluntarily reduce water use by 15%. The chart below shows the difference in usage for July 2020 through March 2021 vs July 2021 through March 2022. Total conservation this period vs last is 1%. The below average rainfall for July 2021 through March 2022 is contributing to a drier year which makes the total conservation percentage lower, despite strong conservation measures. 16 • Potable Water Purchases – The March potable water purchases were 2,222 acre-feet which is 33.4% above the budget of 1,591 acre-feet. Year-to-date potable purchases through March were 21,774 acre-feet which is 1.6% above the budget of 21,440 acre-feet. • Recycled Water Purchases – The March recycled water purchases from the City of San Diego and production at the District’s treatment facility were 211 acre-feet which is 83.9% above the budget of 115 acre-feet. Year-to-date recycled purchases and production through March were 2,630 acre-feet which is 3.7% below the budget of 2,630 acre-feet. 17 Potable, Recycled, and Sewer (Reporting up to the month of March): • Total number of potable water meters: 51,430 • Total number of sewer connections: 4,740 • Recycled water consumption for the month of March: o Total consumption: 143.73 acre-feet or 46,831,532 gallons. o Average daily consumption: 1,510,694 gallons per day. o Total cumulative recycled water consumption since March 1, 2021: 2,751.80 acre-feet. o Total number of recycled water meters: 767. • Wastewater flows for the month of March: o Total basin flow: 1,619,677 gallons per day. ▪ This is an increase of 1.2 percent from March 2021. o Spring Valley Sanitation District flow to Metro: 539,892 gallons per day. o Total Otay flow: 1,079,774 gallons per day. o Flow processed at the Ralph W. Chapman Water Recycling Facility: 1,000,839 gallons per day. o Flow to Metro from Otay Water District: 78,935 gallons per day. o By the end of March there were 6,752 wastewater EDUs. Exhibit A Annual YTD REVENUES: Budget Actual Budget Variance Var % Potable Water Sales 55,548,600$ 41,584,702$ 41,550,000$ 34,702$ 0.1% Recycled Water Sales 9,681,500 7,103,271 7,221,200 (117,929) (1.6%) Potable Energy Charges 2,574,900 2,000,747 1,952,800 47,947 2.5% Potable System Charges 17,393,000 12,980,967 12,951,000 29,967 0.2% Potable MWD & CWA Fixed Charges 13,505,000 10,087,333 10,065,000 22,333 0.2% Potable Penalties and Other Fees 912,000 659,732 684,000 (24,268) (3.5%) Total Water Sales 99,615,000 74,416,752 74,424,000 (7,248) (0.0%) Sewer Charges 3,068,000 2,302,710 2,277,900 24,810 1.1% Meter Fees 74,000 103,390 55,800 47,590 85.3% Capacity Fee Revenues 1,976,000 1,838,694 1,482,300 356,394 24.0% Non-Operating Revenues 2,219,500 1,957,729 1,628,150 329,579 20.2% Tax Revenues 4,969,000 3,485,417 3,159,600 325,817 10.3% Interest 236,000 114,177 177,100 (62,923) (35.5%) Total Revenues 112,157,500$ 84,218,870$ 83,204,850$ 1,014,020$ 1.2% EXPENSES: Potable Water Purchases 40,446,000$ 28,189,435$ 30,254,300$ 2,064,866$ 6.8% Recycled Water Purchases 4,865,000 3,583,278 3,583,278 - 0.0% CWA-Infrastructure Access Charge 3,080,000 2,308,056 2,308,200 144 0.0% CWA-Customer Service Charge 1,817,000 1,350,222 1,350,300 78 0.0% CWA-Reliability Charge 2,867,000 2,129,763 2,129,700 (63) (0.0%) CWA-Emergency Storage Charge 4,595,000 3,417,658 3,417,660 2 0.0% MWD-Capacity Res Charge 765,000 554,027 554,160 133 0.0% MWD-Readiness to Serve Charge 653,000 490,025 489,600 (425) (0.1%) Subtotal Water Purchases 59,088,000 42,022,464 44,087,198 2,064,735 4.7% Power Charges 3,485,000 2,751,480 2,639,200 (112,280) (4.3%) Payroll & Related Costs 22,048,500 15,774,807 17,029,100 1,254,293 7.4% Material & Maintenance 3,987,900 2,621,139 2,990,900 369,761 12.4% General Administrative Expenses 6,890,800 4,577,836 5,156,780 578,944 11.2% Legal Fees 657,000 490,097 492,750 2,653 0.5% Expansion Reserve 2,066,900 1,549,900 1,549,900 - 0.0% Betterment Reserve 735,000 551,250 551,250 - 0.0% Replacement Reserve 11,986,900 8,990,100 8,990,100 - 0.0% Transfer to OPEB/PERS 1,100,000 1,814,200 825,200 (989,000) (119.8%) General Fund Reserve 90,500 67,600 67,600 - 0.0% Rate Stabilization Reserve 21,000 - - - 0.0% Total Expenses 112,157,500$ 81,210,873$ 84,379,978$ 3,169,105$ 3.8% EXCESS REVENUES(EXPENSE)-$ 3,007,997$ (1,175,128)$ 4,183,125$ OTAY WATER DISTRICT COMPARATIVE BUDGET SUMMARY FOR THE NINE MONTHS ENDED MARCH 31, 2022 F:/MORPT/FS2022-P9 4/21/2022 10:11 AM The year-to-date actual net revenues through March show a positive variance of $3,007,997. COMPARATIVE BUDGET SUMMARY NET REVENUE AND EXPENSES FOR THE NINE MONTHS ENDED MARCH 31, 2022 ‐$1,400,000 ‐$800,000 ‐$200,000 $400,000 $1,000,000 $1,600,000 $2,200,000 $2,800,000 $3,400,000 $4,000,000 $4,600,000 $5,200,000  JUL  AUG  SEP  OCT  NOV  DEC  JAN  FEB  MAR  APR  MAY  JUN YTD Actual Net Revenues YTD Budget Net Revenues YTD Variance in Net Revenues OTAY WATER DISTRICT INVESTMENT PORTFOLIO REVIEW March 31, 2022 INVESTMENT OVERVIEW & MARKET STATUS: At the Federal Reserve Board's regular scheduled meeting on March 16, 2022, the Committee increased the target range for the federal funds rate from 0.0-0.25% to 0.25% -0.50% and anticipates that ongoing increases in the target range will be appropriate in light of the effects of the invasion of Ukraine by Russia and its related events. The Committee's long-term goal is to attain maximum employment and inflation of 2%. At a future meeting, the Committee plans to reduce its holdings of Treasury securities, agency debt, and agency mortgage-backed securities. 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 March 2022 was .62%, which was five basis points higher than the previous month. LAIF's return was nine basis points higher than the last month, reaching an average effective yield of .37% for March 2022. Based on our success at maintaining a competitive rate of return on our portfolio during this extended period of low-interest rates, no changes in investment strategy regarding returns on investment are being considered at this time. In accordance with the District's Investment Policy, all District funds continue to be managed based on the objectives, in priority order, of safety, liquidity, and return on investment. PORTFOLIO COMPLIANCE: March 31, 2022 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 $30.27 Million 8.03: Federal Agency Issues 100% 100% $11.74 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% 0.05% 8.08: San Diego County Pool 100% 100% 56.44% 12.0: Maximum Single Financial Institution 100% 50% 1.64% Jul FY21 Aug FY21 Sep FY21 1st Qtr FY21 Oct FY21 Nov FY21 Dec FY21 2nd Qtr FY21 Jan FY21 Feb FY21 Mar FY21 3rd Qtr FY21 Apr FY21 May FY21 June FY21 4th Qtr FY21 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 LAIF 0.92 0.78 0.69 0.80 0.62 0.58 0.54 0.58 0.46 0.41 0.36 0.41 0.34 0.32 0.26 0.31 0.22 0.22 0.21 0.20 0.20 0.20 0.21 0.20 0.23 0.28 0.37 0.29 Otay 0.95 0.93 0.82 0.91 0.81 0.87 0.77 0.82 0.72 0.70 0.65 0.70 0.62 0.61 0.61 0.61 0.57 0.59 0.57 0.58 0.54 0.52 0.52 0.53 0.52 0.57 0.62 0.57 Difference 0.03 0.15 0.13 0.11 0.19 0.29 0.23 0.24 0.26 0.29 0.29 0.29 0.28 0.29 0.35 0.30 0.35 0.37 0.36 0.38 0.34 0.32 0.31 0.33 0.29 0.29 0.25 0.28 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 Re t u r n o n I n v e s t m e n t s Month Performance Measure FY-22 Return on Investment LAIF Otay Difference Target: Meet or Exceed 100% of LAIF $1,645,218 1.64% $86,901,790 86.61% $11,794,227 11.75% Otay Water District Investment Portfolio: 03/31/2022 Banks (Passbook/Checking/CD)Pools (LAIF & County) Agencies & Money Market Mutual Funds Total Cash and Investments: $100,341,235 (Book Value) Month End Portfolio Management March 31, 2022 Portfolio Summary % of Portfolio Book ValueInvestmentsMarket Value Par Value Days to MaturityTerm YTM 360 Equiv. YTM 365 Equiv. Federal Agency Issues- Callable 3,989,452.63 8164.04 1.6347873,933,040.004,000,000.00 1.657 Federal Agency Issues - Bullet 7,751,675.91 1,3657.85 0.8451,2147,337,683.527,796,000.00 0.857 Money Market 53,098.09 10.05 0.016153,098.0953,098.09 0.016 Local Agency Investment Fund (LAIF)30,272,827.39 130.67 0.360129,932,365.1930,272,827.39 0.365 San Diego County Pool 56,628,962.31 157.38 0.700155,304,000.0056,628,962.31 0.710 98,696,016.33 100.00%Investments 96,560,186.8098,750,887.79 141 128 0.645 0.654 Cash (not included in yield calculations)Passbook/Checking 1,645,218.62 1 0.42411,645,218.621,645,218.62 0.430 100,341,234.95Total Cash and Investments 98,205,405.42100,396,106.41 141 128 0.645 0.654 Current Year March 31 52,379.55 Fiscal Year To Date 387,872.28 Average Daily Balance Effective Rate of Return 99,740,473.08 95,337,423.20 0.54%0.62% 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 05, 2021. The market valueinformation provided by Interactive Data Corporation. The investments provide sufficient liquidity to meet the cash flow requirements of the District for the next six months of expenditures. __________________________________________________ ____________________Joseph Beachem, Chief Financial Officer Portfolio OTAY NL! APData Updated: SET_ME8: 04/20/2022 16:51 Reporting period 03/01/2022-03/31/2022 Run Date: 04/20/2022 - 16:51 PM (PRF_PM1) 7.3.0 Report Ver. 7.3.5 04/25/2022 YTM 360 Page 1 Par Value Book Value Maturity Date Stated RateMarket Value March 31, 2022 Portfolio Details - Investments Average BalanceIssuer Portfolio Management Month End Days to MaturityS&PCUSIP Investment # Purchase Date Federal Agency Issues- Callable 1.294Federal Home Loan Bank2395 2,000,000.00 1,989,452.63 07/26/20241.08002/03/2022 1,942,240.00 AA3130AQL68 847 1.973Federal Home Loan Bank2396 2,000,000.00 2,000,000.00 03/28/20242.00003/30/2022 1,990,800.00 AA3130ARE31 727 3,989,452.633,933,040.004,000,000.002,118,307.64Subtotal and Average 1.634 787 Federal Agency Issues - Bullet 0.612Federal Home Loan Mortgage2391 1,045,000.00 1,036,184.30 09/23/20250.37509/16/2021 969,885.40 AA3137EAEX3 1,271 0.618Federal Home Loan Mortgage2392 2,751,000.00 2,727,313.30 09/23/20250.37509/22/2021 2,553,258.12 AA3137EAEX3 1,271 0.996Federal National Mortage Assoc2393 2,000,000.00 2,033,418.14 01/07/20251.62512/09/2021 1,952,580.00 AA3135G0X24 1,012 1.129Federal National Mortage Assoc2394 2,000,000.00 1,954,760.17 11/07/20250.50012/15/2021 1,861,960.00 AA3135G06G3 1,316 7,751,675.917,337,683.527,796,000.007,751,292.61Subtotal and Average 0.845 1,214 BOND PROCEEDS (LAIF) 0.203STATE OF CALIFORNIA9015 0.00 0.00 0.2060.00LAIF 2018 1 0.000.000.000.00Subtotal and Average 0.000 0 Money Market 0.030Blackrock T - Fund Inst9010 6,245.61 6,245.61 0.0306,245.61RESERVE-10A WRB 1 0.030Blackrock T - Fund Inst9011 10,800.96 10,800.96 0.03010,800.96RESERVE 10 BABS 1 0.010FIRST AMERICAN US TREASURY9016 36,051.52 36,051.52 0.01010/25/2021 36,051.52OWD TRUST & CUS 1 53,098.0953,098.0953,098.0948,046.95Subtotal and Average 0.016 1 Local Agency Investment Fund (LAIF) 0.360STATE OF CALIFORNIA9001 30,272,827.39 30,272,827.39 0.36529,932,365.19LAIF 1 30,272,827.3929,932,365.1930,272,827.3931,298,633.84Subtotal and Average 0.360 1 San Diego County Pool 0.700San Diego County9007 56,628,962.31 56,628,962.31 0.71055,304,000.00SD COUNTY POOL 1 56,628,962.3155,304,000.0056,628,962.3156,628,962.31Subtotal and Average 0.700 1 99,740,473.08 98,750,887.79 0.645 12896,560,186.80 98,696,016.33Total and Average Portfolio OTAY NL! APData Updated: SET_ME8: 04/20/2022 16:51 Run Date: 04/20/2022 - 16:51 PM (PRF_PM2) 7.3.0 Report Ver. 7.3.5 YTM 360 Page 2 Par Value Book Value Stated RateMarket Value March 31, 2022 Portfolio Details - Cash Average BalanceIssuer Portfolio Management Month End Days to MaturityS&PCUSIP Investment # Purchase Date Union Bank 0.000STATE OF CALIFORNIA9002 100.02 100.02100.02UNION MONEY 1 0.000STATE OF CALIFORNIA9003 2,950.00 2,950.002,950.00PETTY CASH 1 0.444STATE OF CALIFORNIA9004 1,573,412.58 1,573,412.58 0.4501,573,412.58UNION OPERATING 1 0.000STATE OF CALIFORNIA9005 29,545.36 29,545.3607/01/2021 29,545.36PAYROLL 1 0.000STATE OF CALIFORNIA9014 39,210.66 39,210.6607/01/2021 39,210.66UBNA-FLEX ACCT 1 0.00 99,740,473.08 100,396,106.41 0.645 128 1Average Balance 98,205,405.42 100,341,234.95Total Cash and Investments Portfolio OTAY NL! APData Updated: SET_ME8: 04/20/2022 16:51 Run Date: 04/20/2022 - 16:51 PM (PRF_PM2) 7.3.0 Month End Activity Report Sorted By Issuer March 1, 2022 - March 31, 2022 Current Rate Transaction Date Balance Beginning Balance Ending Par Value Percent of Portfolio Par Value CUSIP Investment # Issuer Purchases or Deposits Redemptions or Withdrawals Issuer: Blackrock T - Fund Inst Money Market Blackrock T - Fund Inst9010 1,959.400.030 0.00RESERVE-10A WRB Blackrock T - Fund Inst9011 5,158.150.030 0.00RESERVE 10 BABS 0.009,929.02 17,046.57Subtotal and Balance 7,117.55 7,117.55 0.009,929.02 17,046.570.017%Issuer Subtotal Issuer: STATE OF CALIFORNIA BOND PROCEEDS (LAIF) 0.00 0.00Subtotal and Balance Union Bank STATE OF CALIFORNIA9004 663,083.640.450 242,746.97UNION OPERATING STATE OF CALIFORNIA9014 91.50 16,266.19UBNA-FLEX ACCT 259,013.161,241,056.64 1,645,218.62Subtotal and Balance 663,175.14 Local Agency Investment Fund (LAIF) STATE OF CALIFORNIA9001 3,800,000.000.365 6,000,000.00LAIF 6,000,000.0032,472,827.39 30,272,827.39Subtotal and Balance 3,800,000.00 4,463,175.14 6,259,013.1633,713,884.03 31,918,046.0131.792%Issuer Subtotal Issuer: FIRST AMERICAN US TREASURY Money Market FIRST AMERICAN US TREASURY9016 0.530.010 0.00OWD TRUST & CUS 0.0036,050.99 36,051.52Subtotal and Balance 0.53 0.53 0.0036,050.99 36,051.520.036%Issuer Subtotal Issuer: Federal Home Loan Bank Federal Agency Issues- Callable Federal Home Loan Bank2396 2,000,000.002.000 03/30/2022 0.003130ARE31 Portfolio OTAY NL! APData Updated: SET_ME8: 04/20/2022 16:51 Run Date: 04/20/2022 - 16:51 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 March 1, 2022 - March 31, 2022 Activity Report Month End CUSIP Investment # Issuer Purchases or Deposits Redemptions or Withdrawals 0.002,000,000.00 4,000,000.00Subtotal and Balance 2,000,000.00 2,000,000.00 0.002,000,000.00 4,000,000.003.984%Issuer Subtotal Issuer: Federal Home Loan Mortgage Federal Agency Issues - Bullet 3,796,000.00 3,796,000.00Subtotal and Balance 0.00 0.003,796,000.00 3,796,000.003.781%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 4,000,000.003.984%Issuer Subtotal Issuer: San Diego County San Diego County Pool 56,628,962.31 56,628,962.31Subtotal and Balance 0.00 0.0056,628,962.31 56,628,962.3156.406%Issuer Subtotal 100,184,826.35 100,396,106.41Total 6,259,013.166,470,293.22100.000% Portfolio OTAY NL! APData Updated: SET_ME8: 04/20/2022 16:51 Run Date: 04/20/2022 - 16:51 DA (PRF_DA) 7.2.0 Report Ver. 7.3.5 Month End Duration Report Sorted by Investment Type - Investment Type Through 03/31/2022 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 Bank2395 99 2,000,000.00 1,942,240.003130AQL68 2.367 07/26/2024 2.2651,989,452.63 1.294Fair 1.080000 Federal Home Loan Bank2396 99 2,000,000.00 1,990,800.003130ARE31 2.237 03/28/2024 1.9402,000,000.00 1.973Fair 2.000000 Federal Home Loan Mortgage2391 99 1,045,000.00 969,885.403137EAEX3 2.548 09/23/2025 3.4141,036,184.30 0.612Fair .3750000 Federal Home Loan Mortgage2392 99 2,751,000.00 2,553,258.123137EAEX3 2.548 09/23/2025 3.4142,727,313.30 0.618Fair .3750000 Federal National Mortage Assoc2393 99 2,000,000.00 1,952,580.003135G0X24 6.522 01/07/2025 2.6162,033,418.14 0.996Fair 1.625000 Federal National Mortage Assoc2394 99 2,000,000.00 1,861,960.003135G06G3 15.364 11/07/2025 3.2971,954,760.17 1.129Fair .5000000 STATE OF CALIFORNIA9015 99 0.00 0.00LAIF 2018 0.206 0.0000.00 0.203 †Fair .2060000 Blackrock T - Fund Inst9010 99 6,245.61 6,245.61RESERVE-10A 0.030 0.0006,245.61 0.030 †Amort .0300000 Blackrock T - Fund Inst9011 99 10,800.96 10,800.96RESERVE 10 0.030 0.00010,800.96 0.030 †Amort .0300000 FIRST AMERICAN US TREASURY9016 99 36,051.52 36,051.52OWD TRUST & 0.010 0.00036,051.52 0.010 †Amort .0100000 STATE OF CALIFORNIA9001 99 30,272,827.39 29,932,365.19LAIF 0.365 0.00030,272,827.39 0.360Fair .3650000 San Diego County9007 99 56,628,962.31 55,304,000.00SD COUNTY 0.710 0.00056,628,962.31 0.700Fair .7100000 1.135 0.32698,696,016.33 98,750,887.79 96,560,186.80Report Total † † = Duration can not be calculated on these investments due to incomplete Market price data. Portfolio OTAY NL! AP Page 1 Data Updated: SET_ME8: 04/20/2022 16:51 Run Date: 04/20/2022 - 16:51 DU (PRF_DU) 7.1.1 Report Ver. 7.3.5 Month End GASB 31 Compliance Detail Sorted by Fund - Fund March 1, 2022 - March 31, 2022 Investment #Maturity Date Beginning Invested Value Purchase of Principal Investment ClassFundCUSIP Adjustment in Value Ending Invested Value Addition to Principal Redemption of Principal Amortization Adjustment Change in Market Value Fund: Treasury Fund 2391 994,975.85Fair Value 09/23/2025 -25,090.4599 969,885.403137EAEX3 0.00 0.00 0.00 0.00 2392 2,619,309.63Fair Value 09/23/2025 -66,051.5199 2,553,258.123137EAEX3 0.00 0.00 0.00 0.00 2394 1,908,160.00Fair Value 11/07/2025 -46,200.0099 1,861,960.003135G06G3 0.00 0.00 0.00 0.00 2393 1,997,200.00Fair Value 01/07/2025 -44,620.0099 1,952,580.003135G0X24 0.00 0.00 0.00 0.00 2396 0.00Fair Value 03/28/2024 -9,200.0099 1,990,800.003130ARE31 2,000,000.00 0.00 0.00 0.00 2395 1,975,780.00Fair Value 07/26/2024 -33,540.0099 1,942,240.003130AQL68 0.00 0.00 0.00 0.00 9003 2,950.00Amortized 0.0099 2,950.00PETTY CASH 0.00 0.00 0.00 0.00 9005 29,545.36Amortized 0.0099 29,545.36PAYROLL 0.00 0.00 0.00 0.00 9004 1,153,075.91Amortized 0.0099 1,573,412.58UNION OPERATING 0.00 663,083.64 242,746.97 0.00 9014 55,385.35Amortized 0.0099 39,210.66UBNA-FLEX ACCT 0.00 91.50 16,266.19 0.00 9001 32,389,668.38Fair Value -257,303.1999 29,932,365.19LAIF 0.00 3,800,000.00 6,000,000.00 0.00 9015 0.00Fair Value 0.0099 0.00LAIF 2018 0.00 0.00 0.00 0.00 9002 100.02Amortized 0.0099 100.02UNION MONEY 0.00 0.00 0.00 0.00 9007 56,344,000.00Fair Value -1,040,000.0099 55,304,000.00SD COUNTY POOL 0.00 0.00 0.00 0.00 9016 36,050.99Amortized 0.0099 36,051.52OWD TRUST & CUS 0.00 0.53 0.00 0.00 9010 4,286.21Amortized 0.0099 6,245.61RESERVE-10A WRB 0.00 1,959.40 0.00 0.00 9011 5,642.81Amortized 0.0099 10,800.96RESERVE 10 BABS 0.00 5,158.15 0.00 0.00 99,516,130.51Subtotal -1,522,005.15 98,205,405.422,000,000.00 4,470,293.22 6,259,013.16 0.00 99,516,130.51Total 98,205,405.42-1,522,005.152,000,000.00 4,470,293.22 6,259,013.16 0.00 Portfolio OTAY NL! APData Updated: SET_ME8: 04/20/2022 16:51 Run Date: 04/20/2022 - 16:51 GD (PRF_GD) 7.1.1 Report Ver. 7.3.5 Month End Interest Earnings Sorted by Fund - Fund March 1, 2022 - March 31, 2022 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 YieldCUSIP Investment # Interest Earned Fund: Treasury Fund 1,036,184.302391 1,045,000.00 0.375FAC 09/23/2025 326.56 211.24 537.800.61199 1,035,973.063137EAEX3 2,727,313.302392 2,751,000.00 0.375FAC 09/23/2025 859.69 567.57 1,427.260.61699 2,726,745.733137EAEX3 1,954,760.172394 2,000,000.00 0.500FAC 11/07/2025 833.33 1,047.22 1,880.551.13399 1,953,712.953135G06G3 2,033,418.142393 2,000,000.00 1.625FAC 01/07/2025 2,708.33 -1,006.57 1,701.760.98599 2,034,424.713135G0X24 2,000,000.002396 2,000,000.00 2.000MC1 03/28/2024 111.11 0.00 111.111.01499 0.003130ARE31 1,989,452.632395 2,000,000.00 1.080MC1 07/26/2024 1,800.00 378.95 2,178.951.29099 1,989,073.683130AQL68 1,573,412.589004 1,573,412.58 0.450PA1 690.90 0.00 690.900.70599 1,153,075.91UNION OPERATING 30,272,827.399001 30,272,827.39 0.365LA1 9,702.57 0.00 9,702.570.35299 32,472,827.39LAIF 56,628,962.319007 56,628,962.31 0.710LA3 34,148.04 0.00 34,148.040.71099 56,628,962.31SD COUNTY POOL 36,051.529016 36,051.52 0.010PA2 0.30 0.00 0.300.01099 36,050.99OWD TRUST & CUS 6,245.619010 6,245.61 0.030PA2 0.13 0.00 0.130.03699 4,286.21RESERVE-10A WRB 10,800.969011 10,800.96 0.030PA2 0.18 0.00 0.180.03899 5,642.81RESERVE 10 BABS 100,324,300.37Subtotal 100,269,428.91 0.616 52,379.551,198.4151,181.14100,040,775.75 100,324,300.37Total 100,269,428.91 0.616 52,379.551,198.4151,181.14100,040,775.75 Portfolio OTAY NL! APData Updated: SET_ME8: 04/20/2022 16:51 Run Date: 04/20/2022 - 16:51 IE (PRF_IE) 7.2.0 Report Ver. 7.3.5 STAFF REPORT TYPE MEETING:Regular Board MEETING DATE:May 11, 2022 SUBMITTED BY:Eid Fakhouri, Finance Manager, Treasury & Accounting Services W.O./G.F. NO: DIV. NO. APPROVED BY: APPROVED BY: SUBJECT: PURPOSE: Joseph Beachem, Chief Financial Officer Jose Martinez, General Manager Accounts Payable Demand List Attached is the list of demands for the Board's information. FISCAL IMPACT: SUMMARY FOR PERIOD 3/24/2022 - 4/27/2022 NET DEMANDS CHECKS (2057571 - 2057762) $ 1,640,654.72 VOID CHECKS (2) ($ 826.15) TOTAL CHECKS $ 1,639,828.57 WIRE TO: BENEFITS COORDINATORS - DENTAL & COBRA CLAIMS (MAR 2022) $ 20,743.12 BENEFITS COORDINATORS - DENTAL BENEFITS ADMIN FEE (MAR 2022) $ 233.20 BENEFITS COORDINATORS - DENTAL BENEFITS ADMIN FEE FOR CLAIMS (MAR 2022) $ 1,389.79 CITY TREASURER - RECLAIMED WATER PURCH (TAKE OR PAY CY2021) $ 1,734,751.30 CITY TREASURER - RECLAIMED WATER PURCHASE (MAR 2022) $ 118,995.04 OTAY WATER DISTRICT - BI-WEEKLY PAYROLL DEDUCTION $ 623.00 OTAY WATER DISTRICT - BI-WEEKLY PAYROLL DEDUCTION $ 616.00 OTAY WATER DISTRICT - BI-WEEKLY PAYROLL DEDUCTION $ 616.00 PREFERRED BENEFIT INSURANCE - DENTAL & COBRA CLAIMS (FEB 2022) $ 14,440.00 PREFERRED BENEFIT INSURANCE - DENTAL BENEFITS ADMIN (MAR $ 967.48 PUBLIC EMPLOYEES RET SYSTEM - BI-WEEKLY PERS CONTRIBUTION $ 111,563.75 PUBLIC EMPLOYEES RET SYSTEM - BI-WEEKLY PERS CONTRIBUTION $ 109,879.63 SAN DIEGO COUNTY WATER AUTH - CAPACITY FEES COLLECTED (1/1/22-3/31/22) $ 388,865.00 SAN DIEGO COUNTY WATER AUTH - WATER DELIVERIES & CHARGES (FEB 2022) $ 4,106,988.19 SPECIAL DISTRICT RISK - EMPLOYEE MEDICAL BENEFITS (0$<) $ 362,888.57 STATE OF CALIFORNIA - CA SALES USE TAX (1ST QTR 2022) $ 3,689.00 UNION BANK - BI-WEEKLY PAYROLL TAXES $ 165,389.25 UNION BANK - BI-WEEKLY PAYROLL TAXES $ 164,331.35 VOYA FINANCIAL - BI-WEEKLY 401A & 457 PLAN $ 55,675.06 VOYA FINANCIAL - BI-WEEKLY 401A & 457 PLAN $ 36,694.03 TOTAL CASH DISBURSEMENTS $ 9,039,167.33 RECOMMENDED ACTION: That the Board received the attached list of demands. Jb/Attachment Check Total 4,245.50 18,000.00 451.00 451.00 2057608 04/06/22 03492 AQUA-METRIC SALES COMPANY 0087350 03/15/22 INVENTORY 57,837.25 SURGE TANK INSPECTION 7,136.00 7,136.00 2057726 04/27/22 18121 APPLUS RTD USA INC US6-149892-1 01/18/22 SURGE TANK INSPECTION 2057684 04/20/22 18121 APPLUS RTD USA INC US6-149892 01/18/22 1,842.34 2057573 03/30/22 21205 ANTON'S SERVICE INC Ref002658082 03/28/22 UB Refund Cst #0000276289 1,456.54 1,456.54 317.80 317.80 2057572 03/30/22 21204 ANTON'S SERVICE INC Ref002658081 03/28/22 UB Refund Cst #0000276288 1,842.34 UB Refund Cst #0000268437 12.45 12.45 2057607 04/06/22 08967 ANTHEM EAP 448945752089 03/28/22 EMPLOYEE ASSISTANCE PROGRAM (CY2022) 2057725 04/27/22 21246 ANGELA SCHULTZ-MESSENGER Ref002661291 04/25/22 CM202216 03/14/22 CMIS (1/1/22-2/28/22)840.00 CM202211 03/14/22 CMIS (1/1/22-1/31/22)330.00 CM202214 03/14/22 CMIS (2/1/22-2/28/22)2,310.00 CM202215 03/14/22 CMIS (2/1/22-2/28/22)990.00 CM202212 03/14/22 CMIS (1/1/22-2/28/22)4,950.00 CM202210 03/14/22 CMIS (1/1/22-2/28/22)2,475.00 7,249.97 7,249.97 2057606 04/06/22 14462 ALYSON CONSULTING CM202213 03/14/22 CMIS (1/1/22-2/28/22)6,105.00 UB Refund Cst #0000268638 14.91 14.91 2057683 04/20/22 14256 ALLIANT INSURANCE SERVICES INC 1696632 04/03/22 INSURANCE CONSULTING 2057724 04/27/22 21247 ALEJANDRO ALBA Ref002661292 04/25/22 9800840917 04/08/22 AS-NEEDED AQUA AMMONIA FY22 379.50 9800840918 04/08/22 AS-NEEDED AQUA AMMONIA FY22 251.50 9800840914 04/08/22 AS-NEEDED AQUA AMMONIA FY22 491.50 9800840915 04/08/22 AS-NEEDED AQUA AMMONIA FY22 487.50 AS-NEEDED AQUA AMMONIA FY22 1,354.50 9800853719 04/08/22 AS-NEEDED AQUA AMMONIA FY22 1,281.00 2057682 04/20/22 07732 AIRGAS SPECIALTY PRODUCTS INC 9800840916 04/08/22 31,105.14 2057605 04/06/22 21029 AHEAD INC DBA KOVARUS LLC BD0039917 03/17/22 SCADA HARDWARE 69,299.08 69,299.08 750.00 750.00 2057723 04/27/22 13901 ADVANCED INDUSTRIAL SVCS INC 101312022 02/07/22 458-1 RES INT/EXT COATING (JAN 2022)31,105.14 INTERNET CIRCUIT SERVICES FY20-22 1,003.27 1,003.27 2057681 04/20/22 17989 ADS CORP 22446.22-0322 03/26/22 SEWER FLOW MONITORING FY22 2057680 04/20/22 18122 ACC BUSINESS 220725003 03/27/22 569.68 2057679 04/20/22 08488 ABLEFORCE INC 10938 04/18/22 SHAREPOINT & INTRANET SUPPORT SVCS 525.00 525.00 Description Amount 2057571 03/30/22 15416 24 HOUR ELEVATOR INC 115896 02/01/22 ELEVATOR GENERAL MAINTENANCE 569.68 CHECK REGISTER Otay Water District Date Range: 3/30/2022 - 4/27/2022 Check #Date Vendor Vendor Name Invoice Inv. Date Page 1 of 9 60,091.64 37,566.00 1,896.00 22,986.32 623.15 DATA SERVICES 623.15 623.15 2057690 04/20/22 15049 CORELOGIC SOLUTIONS LLC 82127345 03/31/22 DATA SVC - METROSCAN ONLINE SERV 2057576 03/30/22 15049 CORELOGIC SOLUTIONS LLC 82123507 02/28/22 Q420759 03/14/22 INVENTORY 5,872.38 Q464085 03/16/22 INVENTORY 3,178.63 124.99 2057615 04/06/22 18331 CORE & MAIN LP Q045560 03/14/22 INVENTORY 13,935.31 231.08 231.08 2057689 04/20/22 18331 CORE & MAIN LP Q471567 03/25/22 INVENTORY 124.99 EXPENSE REIMBURSEMENT 247.00 247.00 2057731 04/27/22 08406 COBURN-BOYD, LISA 041022041322-1 04/13/22 MILEAGE REIMBURSEMENT 25370 03/31/22 BACTERIOLOGICAL TESTING (3/17/22)126.00 2057614 04/06/22 08406 COBURN-BOYD, LISA 041022041322 04/04/22 25371 03/31/22 BACTERIOLOGICAL TESTING (3/21/22)138.00 25372 03/31/22 BACTERIOLOGICAL TESTING (3/21/22)138.00 25368 03/31/22 BACTERIOLOGICAL TESTING (3/10/22)216.00 25369 03/31/22 BACTERIOLOGICAL TESTING (3/17/22)162.00 25367 03/31/22 BACTERIOLOGICAL TESTING (3/3/22)252.00 25366 03/31/22 BACTERIOLOGICAL TESTING (3/2/22)216.00 35.79 35.79 2057688 04/20/22 04119 CLARKSON LAB & SUPPLY INC 25365 03/31/22 BACTERIOLOGICAL TESTING (2/28/22-3/1/22)648.00 870-1 RES COVER EVAL (MAR 2022)7,512.50 7,512.50 2057575 03/30/22 21196 CHRISTOPHER SAMSON Ref002658073 03/28/22 UB Refund Cst #0000267617 2057730 04/27/22 15177 CAROLLO ENGINEERS INC FB21425 04/05/22 870-1 RES COVER EVAL (11/1/21-2/28/22)22,249.50 FB20916 03/15/22 DISINFECTION SYSTEM IMPROVE (FEB 2022)15,316.50 2057613 04/06/22 15177 CAROLLO ENGINEERS INC FB20897 03/10/22 6,930.00 2057687 04/20/22 20410 CAPITAL INDUSTRIAL 703292022 03/29/22 850-1 & 1200-1 RES PROJECT (MAR 2022)66,412.24 66,412.24 1,550.00 1,550.00 2057612 04/06/22 20374 CALBURTON INC CAL734 03/09/22 UTILITY LOCATING SERVICES (FEB 2022)6,930.00 ELECTRICAL DESIGN (MAR 2022)718.00 718.00 2057574 03/30/22 14112 BSE ENGINEERING INC 754101718 02/28/22 ELECTRICAL DESIGN (FEB 2022) 2057729 04/27/22 14112 BSE ENGINEERING INC 754101719 03/31/22 108.46 2057611 04/06/22 08156 BROWNSTEIN HYATT FARBER 882940 03/24/22 LEGISLATIVE ADVOCACY CONSULTING SERV 3,362.00 3,362.00 265,911.45 265,911.45 2057728 04/27/22 21253 BENJAMIN PEDROSO 3108042622 04/26/22 CUSTOMER REFUND 108.46 JANITORIAL SERVICES CY22-23 8,409.90 8,409.90 2057686 04/20/22 16509 BALDWIN & SONS LLC 083021R2084 08/30/21 REIMBURSEMENT/SANTA VICTORIA 2057685 04/20/22 20125 AZTEC LANDSCAPING INC J1091 03/31/22 3,461.70 2057727 04/27/22 21250 ATKINSON CLARK JOINT VENTURE Ref002661295 04/25/22 UB Refund Cst #0000275660 777.39 777.39 87,319.77 87,319.77 2057610 04/06/22 07785 AT&T 000017901995 03/12/22 TELEPHONE SERVICES (2/12/2022 - 3/11/2022)3,461.70 PROF SERV (FEB 2022)78,013.35 78,013.35 2057650 04/13/22 20199 ASSOC OF CA WATER AGENCIES Member#Z010 040422 04/04/22 FY2022 WORKERS' COMP PROGRAM (QTR 3) 0087215 03/10/22 OMNI 2" C2 TOP PLATE 2,254.39 2057609 04/06/22 17264 ARTIANO SHINOFF ABED 305822 03/16/22 Page 2 of 9 1,163.90 2,808.40 1,196.00 5,382.19 1,384.3216519800703/20/22 VISION BENEFITS (APR 2022 COBRA)59.63 2,831.84 2057580 03/30/22 20511 EYEMED (FIDELITY)165197332 03/20/22 VISION BENEFITS (APR 2022 EMP)1,324.69 80.00 80.00 2057620 04/06/22 20794 ENTISYS 360 177949 03/16/22 MS SOFTWARE MAINTENANCE RENEWAL 2,831.84 RECYCLED WASTE SERVICE FY22 149.69 149.69 2057735 04/27/22 21252 ELVA GUNDERSON 3938042622 04/26/22 CUSTOMER REFUND 2057619 04/06/22 02447 EDCO DISPOSAL CORPORATION 5458 033122 03/31/22 7,900.00 2057693 04/20/22 05134 DYCHITAN, MARISSA 042022051722 04/06/22 EXPENSE REIMBURSEMENT 175.00 175.00 164.21 164.21 2057618 04/06/22 18983 DRYLET LLC 3069 03/15/22 DRYLET BIOAUGMENTATION 7,900.00 UB Refund Cst #0000121244 50.00 50.00 2057617 04/06/22 21100 DIVISION OF EMPLOYMENT 2443033122 03/31/22 UNEMPLOYMENT INSURANCE (1ST QTR 2022) 04/11/22 UB Refund Cst #0000242144 107.96 107.96 2057579 03/30/22 21189 DIANA GONZALES-PARRA Ref002658065 03/28/22 5,367.10 2022-0353 03/11/22 CL2 GAS PM 15.09 2057654 04/13/22 21217 DENISE ROBERTS Ref002658216 ACUTEC 35 & FORCE FLOW 2,121.10 2,121.10 2057616 04/06/22 11797 D&H WATER SYSTEMS INC 2022-0352 03/11/22 ACUTEC 35 & FORCE FLOW 2057653 04/13/22 11797 D&H WATER SYSTEMS INC 2022-0294 03/01/22 540.61 2057692 04/20/22 11797 D&H WATER SYSTEMS INC 2022-0459 03/29/22 AMMONIA SENSORS & INJECTORS 7,874.49 7,874.49 266.07 266.07 2057578 03/30/22 21195 CR TONATICO INVESTMENT LLC Ref002658071 03/28/22 UB Refund Cst #0000260965 540.61 UB Refund Cst #0000243099 81.89 81.89 2057734 04/27/22 21242 CR LUMINA GROUP LLC Ref002661287 04/25/22 UB Refund Cst #0000260963 045442002RI 03/24/22 PERMIT FEES # 04544 (5/1/2022 - 5/1/2023)598.00 2057577 03/30/22 21191 CR LUMINA GROUP LLC Ref002658067 03/28/22 594.00 594.00 2057652 04/13/22 02122 COUNTY OF SAN DIEGO 047452002RI 03/23/22 PERMIT FEES # 04745 (5/1/2022 -5/1/2023)598.00 DEVELOPER PLAN CHECK (APR 2022)2,295.00 2,295.00 2057733 04/27/22 00184 COUNTY OF SAN DIEGO 2139031722 04/21/22 UPFP PERMIT RENEWAL (5/1/2022-5/1/2023) 2057732 04/27/22 00184 COUNTY OF SAN DIEGO E63643042022 04/21/22 193E633790322 04/04/22 DEVELOPER INSPECTION (MAR 2022)76.50 193E636290322 04/04/22 DEVELOPER INSPECTION (MAR 2022)42.50 193E633970322 04/04/22 DEVELOPER INSPECTION (MAR 2022)195.50 193E616820322 04/04/22 DEVELOPER INSPECTION (MAR 2022)76.50 193E636240322 04/04/22 DEVELOPER INSPECTION (MAR 2022)382.50 193E636230322 04/04/22 DEVELOPER INSPECTION (MAR 2022)382.50 SHUT DOWN TEST (MAR 2022)918.00 193E634640322 04/04/22 DEVELOPER INSPECTION (MAR 2022)734.40 03/09/22 EXCAVATION PERMITS 5,052.20 5,052.20 2057691 04/20/22 00184 COUNTY OF SAN DIEGO 193E602090322 04/04/22 623.15 82126635 03/31/22 DATA SVC - REALQUEST PROPERTY DATA 540.75 2057651 04/13/22 00099 COUNTY OF SAN DIEGO DPWMWD0222 2057690 04/20/22 15049 CORELOGIC SOLUTIONS LLC 82127345 03/31/22 DATA SVC - METROSCAN ONLINE SERV Page 3 of 9 10,535.85 18,791.26 6,354.02 157.55 217.17 129.16 7,268.92 7,268.92 2057739 04/27/22 21251 GUANG MA 9347042622 04/26/22 CUSTOMER REFUND 129.16 GEOTECHNICAL SERVICES (2/1/22-3/13/22)970.00 970.00 2057698 04/20/22 03537 GHA TECHNOLOGIES INC 101204418 03/30/22 CRADLEPOINT NETCLOUD LICENSE RENEWAL 2057659 04/13/22 18333 GEOCON INCORPORATED 122020190 03/21/22 767.40 2057658 04/13/22 21165 FRANCHISE TAX BOARD Ben2658256 04/14/22 BI-WEEKLY PAYROLL DEDUCTION 332.57 332.57 250.00 250.00 2057584 03/30/22 21165 FRANCHISE TAX BOARD Ben2658107 03/31/22 BI-WEEKLY PAYROLL DEDUCTION 767.40 BI WEEKLY PAYROLL DEDUCTION 250.00 250.00 2057738 04/27/22 21053 FRANCHISE TAX BOARD Ben2661329 04/28/22 BI WEEKLY PAYROLL DEDUCTION 2057657 04/13/22 21053 FRANCHISE TAX BOARD Ben2658254 04/14/22 25.00 2057583 03/30/22 21053 FRANCHISE TAX BOARD Ben2658105 03/31/22 BI WEEKLY PAYROLL DEDUCTION 250.00 250.00 25.00 25.00 2057737 04/27/22 20481 FRANCHISE TAX BOARD Ben2661331 04/28/22 BI-WEEKLY PAYROLL DEDUCTION 25.00 BI-WEEKLY PAYROLL DEDUCTION 25.00 25.00 2057582 03/30/22 20481 FRANCHISE TAX BOARD Ben2658109 03/31/22 BI-WEEKLY PAYROLL DEDUCTION 2057656 04/13/22 20481 FRANCHISE TAX BOARD Ben2658258 04/14/22 FLEET WASH SERVICES FY 22 190.91 2486710 04/01/22 FLEET WASH SERVICES FY 22 26.26 2473948 03/18/22 FLEET WASH SERVICES FY 22 26.26 2057697 04/20/22 11962 FLEETWASH INC 2481007 03/25/22 1,764.62 2057622 04/06/22 11962 FLEETWASH INC 2465833 03/11/22 FLEET WASH SERVICES FY 22 131.29 1,069.47 1,069.47 2057655 04/13/22 21218 FJ WILLERT CONTRACTING CO Ref002658217 04/11/22 UB Refund Cst #0000248829 1,764.62 DOCUMENT SERVICE (MONTHLY)99.00 99.00 2057581 03/30/22 21203 FJ WILLERT CONSTRUCTION Ref002658080 03/28/22 UB Refund Cst #0000275014 2057696 04/20/22 17888 FIRST AMERICAN DATA TREE LLC 9003400322 03/31/22 INVENTORY 5,262.51 0794513 04/07/22 INVENTORY 1,091.51 0783733-1 03/15/22 INVENTORY 542.65 2057736 04/27/22 03546 FERGUSON WATERWORKS # 1083 0794417-1 04/05/22 0790039-1 03/14/22 INVENTORY 2,154.09 0790522-2 03/16/22 INVENTORY 1,718.18 0791890 03/16/22 INVENTORY 2,994.59 0793737 03/17/22 METER BOX LIDS 2,876.93 INVENTORY 5,450.00 0790522-1 03/15/22 INVENTORY 3,054.82 2057621 04/06/22 03546 FERGUSON WATERWORKS # 1083 0793382 03/16/22 4,736.26 0794046 03/30/22 INVENTORY 3,350.26 0790522-3 03/30/22 INVENTORY 2,449.33 EXPENSE REIMBURSEMENT 213.50 213.50 2057695 04/20/22 03546 FERGUSON WATERWORKS # 1083 0794417 03/30/22 INVENTORY 2057694 04/20/22 18923 FAKHOURI, EID 040922 04/09/22 Page 4 of 9 4,160.13 4,292.57 106.78 22,068.26 UB Refund Cst #0000260446 39.79 39.79205774204/27/22 21241 JAMIL RESSAN Ref002661286 04/25/22 24.33 2057587 03/30/22 21187 JAMES WEIPERT Ref002658063 03/28/22 UB Refund Cst #0000018934 46.11 46.11 2,034.00 2,034.00 2057662 04/13/22 21210 JAMES ALBRITTON Ref002658209 04/11/22 UB Refund Cst #0000008537 24.33 SCRUBBER FLOAT SWITCH 443.93 443.93 2057703 04/20/22 20752 IWG TOWERS ASSETS II LLC 409314240 04/01/22 ANTENNA SUBLEASE FY22 2057626 04/06/22 15368 INTEGRITY MUNICIPAL SYSTEMS 11015 03/10/22 210536 04/01/22 BILL PROCESSING SERVICES FY22 2,719.40 210579 04/04/22 BILL PROCESSING SERVICES FY22 347.72 BILL PROCESSING SERVICES FY22 13,952.38 210157 03/31/22 BILL PROCESSING SERVICES FY22 5,048.76 2057702 04/20/22 08969 INFOSEND INC 210158 03/31/22 168.28 2057586 03/30/22 21153 INCOME PROPERTY ADVISORS Ref002658072 03/28/22 UB Refund Cst #0000267274 66.95 66.95 1,510.12 1,510.12 2057625 04/06/22 13068 HOMETEAM PROPERTY MANAGEMENT 3513040522 04/05/22 CUSTOMER REFUND 168.28 UB Refund Cst #0000239104 337.81 337.81 2057585 03/30/22 21193 HOMEFED VILLAGE 8 LLC Ref002658069 03/28/22 UB Refund Cst #0000250626 5428341222 04/12/22 WATER USAGE (2/8/2022-4/7/2022)53.39 2057661 04/13/22 21216 HENKELS & MCCOY INC Ref002658215 04/11/22 100.00 100.00 2057741 04/27/22 00062 HELIX WATER DISTRICT 4330041222 04/12/22 WATER USAGE (2/5/2022-4/7/2022)53.39 ASSET MANAGEMENT SVCS (FEB 2022)2,291.25 2,291.25 2057660 04/13/22 21215 HEIDI BARTO Ref002658214 04/11/22 UB Refund Cst #0000232547 805807 03/30/22 AS-NEEDED SODIUM HYPOCHLORITE FY22 127.57 2057701 04/20/22 18436 HAZEN AND SAWYER DPC 200940056 03/25/22 804659 03/24/22 AS-NEEDED SODIUM HYPOCHLORITE FY22 342.63 805805 03/30/22 AS-NEEDED SODIUM HYPOCHLORITE FY22 182.25 805804 03/30/22 AS-NEEDED SODIUM HYPOCHLORITE FY22 437.40 804436 03/23/22 AS-NEEDED SODIUM HYPOCHLORITE FY22 388.80 AS-NEEDED SODIUM HYPOCHLORITE FY22 2,166.33 804660 03/24/22 AS-NEEDED SODIUM HYPOCHLORITE FY22 647.59 2057700 04/20/22 19978 HASA INC.805342 03/28/22 802773 03/14/22 AS-NEEDED SODIUM HYPOCHLORITE FY22 747.22 802172 03/09/22 AS-NEEDED SODIUM HYPOCHLORITE FY22 102.06 803797 03/21/22 AS-NEEDED SODIUM HYPOCHLORITE FY22 1,111.72 803317 03/17/22 AS-NEEDED SODIUM HYPOCHLORITE FY22 783.67 109.45 109.45 2057624 04/06/22 19978 HASA INC.803316 03/17/22 AS-NEEDED SODIUM HYPOCHLORITE FY22 1,415.46 FY22 MONOCHLORAMINE ANALYZER SUPP 728.28 728.28 2057740 04/27/22 21238 HAIFA KARCHO Ref002661282 04/25/22 UB Refund Cst #0000185907 2057699 04/20/22 00174 HACH COMPANY 12943864 03/22/22 129.16 2057623 04/06/22 00174 HACH COMPANY 12913963 03/03/22 FY22 MONOCHLORAMINE ANALYZER SUPP 3,310.87 3,310.87 2057739 04/27/22 21251 GUANG MA 9347042622 04/26/22 CUSTOMER REFUND 129.16 Page 5 of 9 4,477.08 7,327.59 17,612.50 17,612.50 UB Refund Cst #0000266821 147.32 147.32 2057631 04/06/22 18332 NV5 INC 258986 03/11/22 ENGINEERING DESIGN (JAN 2022) 2057668 04/13/22 21219 NOZAD SHABA Ref002658218 04/11/22 869.01 2057630 04/06/22 20996 NORTH CAROLINA DEPT OF REVENUE 601397030 03/31/22 WITHHOLDING TAX 1ST QTR 2022 752.00 752.00 9,689.00 9,689.00 2057667 04/13/22 21222 NORMAN GHAZAL Ref002658221 04/11/22 UB Refund Cst #0000275798 869.01 PLAN CHECK SERVICES (FEB 2022)7,134.00 7,134.00 2057708 04/20/22 17261 NATURESCAPE SERVICES 5195 03/31/22 LANDSCAPE MAINTENANCE SERVICES FY22 2057707 04/20/22 19824 MURRAYSMITH INC 21320108 03/24/22 15,913.32 2057594 03/30/22 16613 MISSION RESOURCE CONSERVATION 433 03/16/22 OUTSIDE SERVICES - HWUE 225.00 225.00 385.18 385.18 2057629 04/06/22 01824 MERKEL & ASSOCIATES INC 22030802 03/08/22 SMA HABITAT MANAGEMENT (FEB 2022)15,913.32 EXPENSE REIMBURSEMENT 253.09 253.09 2057706 04/20/22 03745 MEDEROS, CHARLES 041122041422 04/19/22 EXPENSE REIMBURSEMENT 2057593 03/30/22 03745 MEDEROS, CHARLES 032322032422 03/24/22 120.00 2057666 04/13/22 21213 MAZIN KAJJY Ref002658212 04/11/22 UB Refund Cst #0000141108 119.90 119.90 301.64 301.64 2057722 04/27/22 21192 MARUIS JEFFERSON Ref002661284 04/25/22 UB Refund Cst #0000249119 120.00 EXPENSE REIMBURSEMENT 212.20 212.20 2057592 03/30/22 21192 MARUIS JEFFERSON Ref002658068 03/28/22 UB Refund Cst #0000249119 2057591 03/30/22 15599 MARTINEZ, JOSE 121321031622 03/16/22 26.53 2057746 04/27/22 21243 LUIS HARO Ref002661288 04/25/22 UB Refund Cst #0000265760 99.31 99.31 18,630.89 18,630.89 2057665 04/13/22 21212 LUCINA FIRMAN Ref002658211 04/11/22 UB Refund Cst #0000126832 26.53 EMERGENCY PAVING SERVICES FY22 29,109.14 29,109.14 2057745 04/27/22 02823 KOMAX SYSTEMS INC 00039851 02/08/22 WAFER MIXER 2057744 04/27/22 05840 KIRK PAVING INC 21-172-6 03/16/22 AS-NEEDED PAVING SERVICES FY22 5,581.53 21-115-318 03/18/22 AS-NEEDED PAVING SERVICES FY22 1,746.06 2057628 04/06/22 05840 KIRK PAVING INC 21-115-317 03/17/22 13,684.42 2057590 03/30/22 05840 KIRK PAVING INC 21-172-4-R 11/18/21 RETAINAGE RELEASE 4,809.89 4,809.89 4,113.00 4,113.00 2057664 04/13/22 05840 KIRK PAVING INC 21-172-5 03/17/22 EMERGENCY PAVING SERVICES FY22 13,684.42 IN-PLANT INSPECTION SERVICES (MAR 2022)2,898.08 2,898.08 2057705 04/20/22 05840 KIRK PAVING INC 21-115-331 03/31/22 AS-NEEDED PAVING SERVICES FY22 2057704 04/20/22 20835 KENNY CONSULTING SERV INC KCS0724322 04/04/22 53.34 2057743 04/27/22 10089 KENNEDY, ROBERT 041022041422 04/14/22 EXPENSE REIMBURSEMENT 264.02 264.02 53.07 53.07 2057589 03/30/22 21198 KANSAS WILLIAMS Ref002658075 03/28/22 UB Refund Cst #0000268190 53.34 520 RESERVOIR STATIC MIXER INSTALL PROJ 12,218.00 12,218.00 2057588 03/30/22 21202 JORDIN GRAVES Ref002658079 03/28/22 UB Refund Cst #0000274222 881849 03/23/22 CHLORINE GAS 7,477.08 2057627 04/06/22 20989 JENNETTE COMPANY INC 203152022 03/15/22 2057663 04/13/22 10563 JCI JONES CHEMICALS INC 881864 CONTAINER RETURN -3,000.0003/23/22 Page 6 of 9 4,957.00 29,632.96 60.22 50,317.50 50,317.50 2057674 04/13/22 21211 RICHARD SILVAS Ref002658210 04/11/22 UB Refund Cst #0000088492 60.22 UB Refund Cst #0000242335 1,671.36 1,671.36 2057712 04/20/22 02923 RICHARD BRADY & ASSOCIATES 2202124 03/28/22 DESIGN JAMUL PS (FEB 2022) 2057753 04/27/22 21239 REYLENN CONSTRUCTION COMPANY Ref002661283 04/25/22 781.00 2057598 03/30/22 21199 REYLENN CONSTRUCTION COMPANY Ref002658076 03/28/22 UB Refund Cst #0000272338 1,541.09 1,541.09 16,800.00 16,800.00 2057711 04/20/22 21186 RENE TREVINO 9110032322 03/23/22 CUSTOMER REFUND 781.00 UB Refund Cst #0000155942 569.77 569.77 2057752 04/27/22 11969 RELIANCE SAFETY CONSULTANT INC 3629 03/30/22 SAFETY TRAINING 2057597 03/30/22 21190 RAYMOND HENDERSON Ref002658066 03/28/22 93.25 2057673 04/13/22 21214 RANDY ALEXANDER Ref002658213 04/11/22 UB Refund Cst #0000225749 109.08 109.08 6,042.93 6,042.93 2057637 04/06/22 18908 RALSTON TEAM PROPERTIES 3734040522 04/05/22 CUSTOMER REFUND 93.25 PUMP EFFICIENCY TESTING FY22 5,700.00 5,700.00 2057636 04/06/22 19883 R& B AUTOMATION INC 10148892 03/18/22 980-2 PUMP #3 REPAIRS 2057710 04/20/22 01409 PUMP CHECK 8826 02/23/22 1,235.50 2057709 04/20/22 16029 POTABLE DIVERS INC 22017 03/31/22 FY22 FLOATING COVER INSPECTIONS 7,000.00 7,000.00 107.81 107.81 2057751 04/27/22 06419 PLANT SOUP INC 1372 03/25/22 OUTSIDE SERVICES - PROFESSIONAL WRITING 1,235.50 UB Refund Cst #0000251725 38.96 38.96 2057750 04/27/22 21237 PATSY GOFKOWSKI Ref002661281 04/25/22 UB Refund Cst #0000081685 2057596 03/30/22 21194 PATROCINIO JR EGARAN Ref002658070 03/28/22 11,204.10 2057749 04/27/22 21249 PARAMOUNT PROP ADVISORS INC Ref002661294 04/25/22 UB Refund Cst #0000275242 144.46 144.46 274.50 274.50 2057635 04/06/22 18454 PAMCO MACHINE WORKS INC I-43050 03/08/22 REBUILD RIGHT ANGLE DRIVE #5 927-1 RPS 11,204.10 INVENTORY 247.39 247.39 2057634 04/06/22 19310 PALM LAUNDRY INC 131 04/01/22 TOWEL LAUNDRY SERVICE FY22 S100435996004 02/28/22 GATE VALVES 1,729.06 2057633 04/06/22 01002 PACIFIC PIPELINE SUPPLY INC S100437654.001 03/18/22 S100435996003 02/17/22 GATE VALVES 8,539.37 S10043599605 03/04/22 GATE VALVES 5,186.09 32.05 32.05 2057672 04/13/22 01002 PACIFIC PIPELINE SUPPLY INC S100435996001 02/17/22 GATE VALVES 14,178.44 UB Refund Cst #0000272959 51.81 51.81 2057671 04/13/22 21221 PACIFIC COAST COMMUNITIES Ref002658220 04/11/22 UB Refund Cst #0000273077 2057595 03/30/22 21200 PACIFIC COAST COMMUNITIES Ref002658077 03/28/22 10147 03/04/22 SITE TESTING 836.00 10166 04/21/22 LIGHTING & ELECTRICAL INSTALL/MAINT 286.00 144.00 144.00 2057748 04/27/22 19636 OT ELECTRIC 10160 03/18/22 WIRING, BLOCK HEATERS 870-2 PS 3,835.00 IN-PLANT INSPECTION SERV (3/7/22-4/2/22)13,004.00 13,004.00 2057670 04/13/22 19636 OT ELECTRIC 10161 03/04/22 BALLAST REPLACEMENT 2057747 04/27/22 16834 ON-SITE TECHNICAL SVCS INC 10576 04/05/22 137.00 2057669 04/13/22 21220 OLTMANS CONSTRUCTION Ref002658219 04/11/22 UB Refund Cst #0000272722 1,641.06 1,641.06 2057632 04/06/22 03215 O'DONNELL, MICHAEL 040522 04/05/22 EXPENSE REIMBURSEMENT 137.00 Page 7 of 9 195.79 84,520.39 842.88 140,875.31 46,178.75 12,000.00 12,000.00 COMMUNICATIONS CONSULTING SERVICES 5,000.00 5,000.00 2057716 04/20/22 20665 THE VERTEX COMPANIES INC 0168815 03/29/22 ECONOMIC OUTLOOK STUDY 2057715 04/20/22 18376 SVPR COMMUNICATIONS LLC 1495 03/31/22 15,937.81 713112 03/28/22 RED DYE DIESEL FUEL 15,329.30 413111 04/01/22 UNLEADED & DIESEL FUEL 14,911.64 LIFE INSURANCE AND STD/LTD (MAR 2022)11,269.08 11,269.08 2057714 04/20/22 10339 SUPREME OIL COMPANY 413006 04/01/22 UNLEADED & DIESEL FUEL 2057643 04/06/22 15974 SUN LIFE FINANCIAL 3816603012022 03/01/22 553.85 2057758 04/27/22 01460 STATE WATER RESOURCES SW-0240790 04/06/22 ANNUAL PERMIT FEE (04/01/22 - 03/31/23)1,738.00 1,738.00 553.85 553.85 2057757 04/27/22 21115 SONIA RIVAS Ben2661327 04/28/22 BI-WEEKLY PAYROLL DEDUCTION 553.85 BI-WEEKLY PAYROLL DEDUCTION 553.85 553.85 2057677 04/13/22 21115 SONIA RIVAS Ben2658252 04/14/22 BI-WEEKLY PAYROLL DEDUCTION 2057601 03/30/22 21115 SONIA RIVAS Ben2658103 03/31/22 215.00 2057642 04/06/22 14785 SEW-EURODRIVE INC 8701850039 03/14/22 REPAIR LARGE DRUM SCREEN GEAR DRIVE 1,351.44 1,351.44 103.42 103.42 2057641 04/06/22 19603 SECURITAS SECURITY SVC USA INC W7020031 03/31/22 ON-DEMAND SECURITY RESPONSE 215.00 UTILITY EXPENSES (MONTHLY)42,878.02 42,878.02 2057756 04/27/22 00121 SAN DIEGO GAS & ELECTRIC 041522 04/15/22 UTILITY EXPENSES (MONTHLY) 032922A 04/05/22 UTILITY EXPENSES (MONTHLY)34.11 2057600 03/30/22 00121 SAN DIEGO GAS & ELECTRIC 032422 03/24/22 032922 03/29/22 UTILITY EXPENSES (MONTHLY)810.35 032822 03/28/22 UTILITY EXPENSES (MONTHLY)98.70 UTILITY EXPENSES (MONTHLY)83,379.44 033122A 03/31/22 UTILITY EXPENSES (MONTHLY)56,552.71 2057640 04/06/22 00121 SAN DIEGO GAS & ELECTRIC 033122 03/31/22 04/12/22 UTILITY EXPENSES (MONTHLY)809.95 041322 04/03/22 UTILITY EXPENSES (MONTHLY)32.93 84,485.08 040522 04/05/22 UTILITY EXPENSES (MONTHLY)35.31 2057713 04/20/22 00121 SAN DIEGO GAS & ELECTRIC 041222 SOCAL WATERSMART HEW HET WBIC 600.00 600.00 2057676 04/13/22 00121 SAN DIEGO GAS & ELECTRIC 040722 04/07/22 UTILITY EXPENSES (MONTHLY) 2057639 04/06/22 00003 SAN DIEGO COUNTY WATER AUTH 2263 01/12/22 45.70 2057638 04/06/22 02586 SAN DIEGO COUNTY ASSESSOR 202200238 04/01/22 ASSESSOR DATA (MONTHLY)125.00 125.00 155.64 155.64 2057755 04/27/22 21248 SALOMON MAYA Ref002661293 04/25/22 UB Refund Cst #0000274690 45.70 UB Refund Cst #0000267098 46.54 46.54 2057599 03/30/22 21188 ROGER CADDELL Ref002658064 03/28/22 UB Refund Cst #0000050795 030122033122 03/31/22 MILEAGE REIMBURSEMENT (MAR 2022)69.03 2057754 04/27/22 21245 ROBERT HERNANDEZ Ref002661290 04/25/22 60.22 2057675 04/13/22 04542 ROBAK, MARK 30122033122 03/31/22 EXPENSE REIMBURSEMENT (MAR 2022)126.76 2057674 04/13/22 21211 RICHARD SILVAS Ref002658210 04/11/22 UB Refund Cst #0000088492 60.22 Page 8 of 9 906.92 754.04 9,127.00 5,480.00 6,576.00 13,267.50 55.02 Amount Pd Total:1,640,654.72 Check Grand Total:1,640,654.72192 Checks 10,584.42 10,584.42 2057604 03/30/22 21197 ZACHERY HUCKABY Ref002658074 03/28/22 UB Refund Cst #0000267633 55.02 EMPLOYEE BENEFITS 847.50 847.50 2057649 04/06/22 14857 XYLEM/YSI INCORPORATED 923392 03/09/22 NITRATE PROBE SENSOR REPLACEMENTS 156720 03/31/22 ENGINEERING DESIGN SERVICES (MAR 2022)210.00 2057678 04/13/22 08023 WORKTERRA 0102555 03/31/22 203.01 2057762 04/27/22 19866 WOOD RODGERS INC 156752 03/31/22 HYDRAULIC MODELING (MAR 2022)13,057.50 26.81 26.81 2057761 04/27/22 21236 WILLIAM LITTLE Ref002661280 04/25/22 UB Refund Cst #0000074131 203.01 AS-NEEDED BEE REMOVAL 125.00 125.00 2057648 04/06/22 21208 WIDAD SEMAAN 3681040522 04/05/22 CUSTOMER REFUND 2057647 04/06/22 01343 WE GOT YA PEST CONTROL INC 51709 03/17/22 TEMPORARY EMPLOYEE SERVICES FY22 3,288.00 3150 03/21/22 TEMPORARY EMPLOYEE SERVICES FY22 3,288.00 3178 04/04/22 TEMPORARY EMPLOYEE SERVICES FY22 2,192.00 2057646 04/06/22 20739 WATERTALENT LLC 3135 03/14/22 3,500.00 3,500.00 2057721 04/20/22 20739 WATERTALENT LLC 3165 03/28/22 TEMPORARY EMPLOYEE SERVICES FY22 3,288.00 WATER INTERNS (3/14/22-3/20/22)362.44 362.44 2057720 04/20/22 15726 WATER SYSTEMS CONSULTING INC 6565 03/31/22 HYDRAULIC MODELING (MAR 2022) 2057603 03/30/22 20909 VOLT WORKFORCE SOLUTIONS 45071417 03/20/22 1,376.41 2057645 04/06/22 20909 VOLT WORKFORCE SOLUTIONS 45086446 04/05/22 WATER INTERNS (3/21/22-3/27/22)181.22 181.22 13.59 13.59 2057760 04/27/22 21240 VILLAGE OF ESCAYA APTS LLC Ref002661285 04/25/22 UB Refund Cst #0000259076 1,376.41 UB Refund Cst #0000266984 44.65 44.65 2057602 03/30/22 21201 VILLAGE II TOWN CENTER LLC Ref002658078 03/28/22 UB Refund Cst #0000273981 2057759 04/27/22 21244 VICTOR FUENTES Ref002661289 04/25/22 CMIS (FEB 2022)5,662.00 SD032203 03/08/22 CMIS (FEB 2022)3,465.00 2057644 04/06/22 08028 VALLEY CONSTRUCTION MANAGEMENT SD222108 03/09/22 PORT. TOILET RENTAL 617.40 114-12999558 04/08/22 PORT. TOILET RENTAL 136.64 dsb20210834 04/01/22 DIG SAFE BOARD FEES (MONTHLY)241.87 2057719 04/20/22 15675 UNITED SITE SERVICES INC 114-12999568 04/08/22 562.68 2057718 04/20/22 00427 UNDERGROUND SERVICE ALERT 320220499 04/01/22 UNDERGROUND ALERTS (MONTHLY)665.05 2057717 04/20/22 20837 UGSI CHEMICAL FEED INC 0022421 03/29/22 ENCORE700 PUMP PARTS 562.68 Page 9 of 9