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HomeMy WebLinkAbout02-03-21 Board Packet 1 OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY BOARD OF DIRECTORS MEETING BY TELECONFERENCE 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA WEDNESDAY February 3, 2021 3:30 P.M. AGENDA 1. ROLL CALL 2. PLEDGE OF ALLEGIANCE 3. APPROVAL OF AGENDA 4. APPROVE THE MINUTES OF THE REGULAR MEETING OF OCTOBER 7, 2020 AND SPECIAL BOARD MEETING OF DECEMBER 4, 2020 5. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JURIS-DICTION BUT NOT AN ITEM ON TODAY'S AGENDA This meeting is being held via teleconference. Members of the public may submit their comments on agendized and non-agendized items by either of the following two meth- ods: a) No later than a half hour before the start of the meeting, complete the Request to Speak Form and email it to BoardSecretary@otaywater.gov. Your request to speak will be acknowledged during the “Public Participation” portion of the meeting when the board will hear your public comment. When called to speak, please state your Name and the City in which you reside. You will be provided three minutes to speak. OR b) No later than a half hour before the start of the meeting, email your comment to BoardSecretary@otaywater.gov and it will be read aloud during the “Public Partici- pation” portion of the meeting. Please provide your Name and the City in which you reside, with your comment. Your comment must not take more than three minutes to read. 2 The District’s meeting is live streamed. Information on how to watch and listen to the Dis- trict’s meeting can be found at this link: https://otaywater.gov/board-of-directors/agenda- and-minutes/board-agenda/ CONSENT CALENDAR 6. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PARTICU-LAR ITEM: a) AUTHORIZE AN AGREEMENT WITH KIRK PAVING IN AN AMOUNT NOT-TO- EXCEED $141,980.00 FOR THE FINAL PAVING WORK ON OLYMPIC PARKWAY TO ENSURE THE ROAD IS TO CODE, PER THE CITY OF CHULA VISTA’S REGULATIONS b) APPROVE AN INCREASE TO THE BUDGET FOR CIP P2083 FOR THE 870-2 PUMP STATION REPLACEMENT PROJECT IN AN AMOUNT NOT-TO-EXCEED $300,000.00 (FROM $19,550,000.00 TO $19,850,000.00) ACTION ITEMS 7. ENGINEERING AND WATER OPERATIONS a) APPROVE THE WATER SUPPLY ASSESSMENT REPORT DATED DECEMBER 2020 FOR THE COUNTY OF SAN DIEGO’S OTAY HILLS PROJECT, AS RE-QUIRED BY SENATE BILL 610 (COBURN-BOYD) 8. FINANCE AND ADMINISTRATION a) ADOPT ORDINANCE NO. 581 TO AMEND SECTION 72, PENALTIES AND DAMAGES, OF THE DISTRICT’S CODE OF ORDINANCES EFFECTIVE MARCH 1, 2021, TO ALLOW THE DISTRICT TO LIEN RENTAL PROPERTY IF THERE ARE OUTSTANDING BALANCES OWED BY TENANTS, AND TO EXPAND THE SCOPE OF WHEN THE DISTRICT CAN REQUIRE A PROPERTY TO REMAIN IN THE OWNER’S NAME (CAREY) 9. BOARD a) DISCUSS THE 2021 BOARD MEETING CALENDAR (CRUZ) REPORTS 10. GENERAL MANAGER’S REPORT a) UPDATE ON DISTRICT’S RESPONSE TO COVID-19 PANDEMIC 11. SAN DIEGO COUNTY WATER AUTHORITY UPDATE 12. DIRECTORS' REPORTS/REQUESTS 3 13. PRESIDENT’S REPORT/REQUESTS RECESS TO CLOSED SESSION 14. CLOSED SESSION a) DISCUSSION RELATING TO CORONAVIRUS (COVID-19) AND PUBLIC SER-VICES [GOVERNMENT CODE §54957] b) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOVERN- MENT CODE §54956.9] KESSNER, ET AL. vs. CITY OF SANTA CLARA, ET AL.; CASE NO. 20CV364054, SANTA CLARA COUNTY SUPERIOR COURT c) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOVERN- MENT CODE §54956.9] OTAY WATER DISTRICT vs. CITY OF SAN DIEGO; CASE NO. 37-2017-00019348-CU-WM-CTL d) CONFERENCE WITH REAL PROPERTY NEGOTIATORS pursuant to California Government Code section 54956.8 Property: SALT CREEK GOLF COURSE 525 HUNTE PARKWAY CHULA VISTA, CA 91914 Agency negotiator: General Counsel Under negotiation: Disposition of Property RETURN TO OPEN SESSION 15. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION. OTAY WATER DISTRICT FINANCING AUTHORITY 16. NO MATTERS TO DISCUSS 17. ADJOURNMENT 4 All items appearing on this agenda, whether or not expressly listed for action, may be deliberated and may be subject to action by the Board. The Agenda, and any attachments containing written information, are available at the District’s website at www.otaywater.gov. Written changes to any items to be considered at the open meeting, or to any attachments, will be posted on the District’s website. Copies of the Agenda and all attachments are also available through the District Secretary by contacting her at (619) 670-2280. If you have any disability which would require accommodation in order to enable you to partici-pate in this meeting, please call the District Secretary at (619) 670-2280 at least 24 hours prior to the meeting. Certification of Posting I certify that on January 29, 2021 I posted a copy of the foregoing agenda near the regu-lar 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 January 29, 2021. /s/ Susan Cruz, District Secretary 1 MINUTES OF THE BOARD OF DIRECTORS MEETINGS OF THE OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY October 7, 2020 1.The meeting was called to order by General Manager Martinez at 3:30 p.m. 2.ROLL CALL Directors Present: Croucher, Gastelum, Robak, Smith and Thompson 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 Pedro Porras, Asst. Chief of Finance Kevin Koeppen, District Secretary Susan Cruz and others per attached list. 3.PLEDGE OF ALLEGIANCE 4.APPROVAL OF AGENDA A motion was made by Director Thompson, seconded by Director Smith, and carried with the following vote: Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: None to approve the agenda. 5.APPROVE THE MINUTES OF THE REGULAR BOARD MEETINGS OF JULY 1, 2020 AND AUGUST 5, 2020; AND THE SPECIAL BOARD MEETING OF APRIL 22, 2020 A motion was made by President Croucher, seconded by Director Gastelum, andcarried with the following vote: Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: None to approve the minutes of the regular board meetings of July 1, 2020 and August 5, 2020; and special board meeting of April 22, 2020. AGENDA ITEM 4 2 6.PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'SJURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA No one wished to be heard. PUBLIC HEARING 7.PUBLIC HEARING ON RATES AND CHARGES THE BOARD WILL BE HOLDING A PUBLIC HEARING TO CONSIDER THE PROPOSED SEWER RATE CHANGES TO BE IMPLEMENTED IN THE FISCALYEAR 2020-2021 OPERATING AND CAPITAL BUDGETS AND TO AUTHORIZETHE PASS-THROUGH OF INCREASES FROM SEWER SERVICE PROVIDERSAND DISTRICT INCREASES FOR A PERIOD OF FIVE YEARS, FOR FISCALYEARS 2021-2025, NOT-TO-EXCEED 10 PERCENT ANNUALLY, FOR ALL COSTS OTHER THAN PASS-THROUGH COSTS FROM SEWER SERVICEPROVIDERS. THE BOARD INVITES THE PUBLIC TO PROVIDE COMMENTSON THE PROPOSED SEWER RATE CHANGES. a)APPROVE THE IMPLEMENTATION OF SEWER RATE CHANGES AS PROPOSED FOR THE FISCAL YEAR 2020-2021 OPERATING ANDCAPITAL BUDGETS; ADOPT ORDINANCE NO. 578 AMENDING SECTION53, AND APPENDIX A, SCHEDULE OF FEES, OF THE DISTRICT’S CODEOF ORDINANCES; AUTHORIZE FOR A PERIOD OF FIVE-YEARS THEPASS-THROUGH OF COST INCREASES FROM SEWER SERVICE PROVIDERS; AND AUTHORIZE, FOR A PERIOD OF FIVE-YEARS,DISTRICT SEWER RATE INCREASES NOT-TO-EXCEED 10 PERCENTANNUALLY FOR ALL COSTS OTHER THAN PASS-THROUGH COSTS Assistant Chief of Finance reviewed the proposed changes to the sewer rates (please reference the presentation attached to the staff report) and stated staff is proposing an overall rate increase of 2.8% effective January 1, 2021. With the implementation of this increase, the District would be the fifth (5th) lowest cost sewer provider among the twenty-eight (28) sewer service providers in the County of San Diego. Staff is proposing that the Board: •Approve Ordinance No. 578 to adopt the rate, fee and charge changes tosewer billed beginning January 1, 2021. •Authorize for a period of 5 years, all future pass-through increases ordecreases to cover changes to sewer rates, fees, or charges from theDistrict’s providers. •Authorize for a period of 5 years, overall average sewer rate increases in addition to the pass-through increases, not to exceed 10% per year of allcosts other than pass-through costs. 3 It was indicated that Proposition 218 Rate Increase Notices were forwarded to the District’s sewer customers and no dispute letters have been received. President Croucher opened the public hearing at 3:39 p.m. to receive the public’s comments on the proposed sewer rate increase. As there were no requests to speak, the public hearing was closed at 3:40 p.m. A motion was made by President Croucher, seconded by Director Robak, and carried with the following vote: Ayes: Directors Croucher, Robak, Smith and Thompson Noes: Director Gastelum Abstain: None Absent: None to approve staff’s recommendation. CONSENT CALENDAR 8.ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST ISMADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PARTICULAR ITEM: A motion was made by President Croucher, seconded by Director Thompson, andcarried with the following vote: Ayes: Directors Croucher, Robak, Smith and Thompson Noes: Director Gastelum Abstain: None Absent: None to approve the following consent calendar items: a)APPROVE CHANGE ORDER NO. 8 TO THE EXISTING CONSTRUCTIONCONTRACT WITH PACIFIC HYDROTECH CORPORATION IN THEAMOUNT OF $59,903.35 FOR THE 870-2 PUMP STATION REPLACEMENT PROJECT b)AUTHORIZE THE ISSUANCE OF PURCHASE ORDERS FOR THEPURCHASE OF SIX (6) FLEET VEHICLES TO: 1) FORD OF CHULA VISTAIN THE AMOUNT OF $102,986.76 FOR THREE (3) 2021 FORD F-150 PICK-UP TRUCKS; 2) FAIRVIEW FORD IN THE AMOUNT OF $84,056.04 FOR TWO (2) 2021 FORD F-250 PICK-UP TRUCKS; AND 3) FRITTS FORDIN THE AMOUNT OF $29,590.75 FOR ONE (1) 2021 FORD RANGERPICK-UP TRUCK. THE TOTAL AMOUNT FOR ALL SIX (6) FLEETVEHICLES IS $216,633.55 ACTION ITEMS 4 9.ENGINEERING AND OPERATIONS a)ADOPT RESOLUTION NO. 4387 APPROVING THE AUGUST 24, 2020 PURCHASE AGREEMENT FOR $182,000 FOR THE JAMACHA BOULEVARD PROPERTY IN SPRING VALLEY AND AUTHORIZE THEGENERAL MANAGER TO COMPLETE THE SALE OF THE PROPERTY Engineering Manager Bob Kennedy requested that the Board adopt Resolution No. 4387 approving the August 24, 2020 Purchase Agreement for $182,000 for the Jamacha Boulevard property in Spring Valley and authorize the General Manager to enter into escrow to complete the sale of the property. Please reference Attachment A (Committee Action) to the staff report for the details of Mr. Kennedy’s presentation. A motion was made by President Croucher, seconded by Director Gastelum, and carried with the following vote: Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: None to approve staff’s recommendation. 10.GENERAL MANAGER a)ADOPT ORDINANCE NO. 579 AMENDING SECTION 6, CONFLICT OFINTEREST CODE, CONTAINED WITHIN THE DISTRICT’S CODE OF ORDINANCES TO UPDATE THE POSITION TITLES REQUIRED TO FILE A FORM 700; TO INCLUDE THE POLITICAL REFORM ACT(GOVERNMENT CODE SECTION 8100, et seq.) LANGUAGE WITHIN THEDISTRICT’S CODE; AND TO UPDATE THE APPENDIX TO REFLECTCURRENT STATUTE LANGUAGE District Secretary Cruz requested that the Board adopt Ordinance 579 amending Section 6, Conflict of Interest Code, contained within the District’s Code of Ordinances to update the position titles required to file a Form 700, to include the political reform act (Government code Section 8100, et. seq.) language within the District’s Code, and to update the appendix to reflect current statute language. Please reference Attachment A (Committee Action) to the staff report for the details of Ms. Cruz’ presentation. A motion was made by President Croucher, seconded by Director Thompson, and carried with the following vote: Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson 5 Noes: None Abstain: None Absent: None to approve staff’s recommendation. 11. BOARD a) DISCUSS THE 2020 BOARD MEETING CALENDAR Staff noted that the December 2, 2020 Board meeting may be canceled, as has been the practice, if there are no business items requiring board action. INFORMATIONAL ITEMS 12. ANNUAL DIRECTOR’S EXPENSE REPORT FOR FISCAL YEAR 2020 Assistant Chief of Finance Kevin Koeppen presented the Director’s expenses for fiscal year 2020. Please reference Attachment A (Committee Action) to the staff report for the details of Mr. Keoppen’s presentation. Director Thompson noted that staff identified the reason why Director’s expenses were slightly higher than last year. Due to the extraordinary circumstances of the COVID-19 pandemic, the District held special board meetings to monitor the status and any impacts the pandemic might have on District operations. Additionally, the board held special meetings for the recruitment of a new general manager. 13. YEAR-END REPORT ON THE DISTRICT’S FISCAL YEARS 2019-2022 STRATEGIC PERFORMANCE PLAN FOR FISCAL YEAR 2020 As this item was presented to both the Engineering, Operations and Water Resources Committee and Finance and Administration Committee; and the information is included in the board packet, it was suggested by President Croucher that if members of the board wished additional information, they could schedule a meeting with staff for a detailed review of the material. The board had no requests or comments. REPORTS 14. GENERAL MANAGER’S REPORT General Manager Martinez presented information from his report that included the District’s response to the COVID-19 pandemic, open enrollment, County’s activated Emergency Operations Center, America’s Water Infrastructure Act of 2018, collections and bad debt exposure, fiscal year 2020 audit, Ralph W. Chapman Water Reclamation Facility disinfection system improvements, July and August water deliveries to Mexico, State Water Resources Control Board Sanitary Survey Report on all potable water sites, and shared interagency assistance. Staff responded to questions and comments from the board. 6 15.SAN DIEGO COUNTY WATER AUTHORITY UPDATE Director Smith reported that CWA held its election of officers for the upcoming yearand President Croucher was elected CWA’s new Chair starting in October, Ms.Christy Guerin from Olivenhain WD was elected Vice Chair, and Mr. JerryButkiewicz from the City of San Diego was elected Secretary. He shared that CWA completed the upgrades to Flow Control Facilities (FCF) Vallecitos WD 11 and Vista Irrigation District 12. He indicated that CWA accomplished a change order rate of-0.5% which demonstrates the expertise of CWA’s staff, consultants, andcontractors in estimating project costs accurately which limits the number of changeorders. He also reported that the City of Poway requested a treated water connection (a FCF). He stated there was much discussion on how this process occurred as it had been some time since CWA approved a new connection asagencies’ customers are using less water through conservation. The process wasidentified in CWA’s code and the new FCF with the City of Poway was eventuallyapproved. Dir Smith lastly stated that CWA has been tracking MWD’s rates and a number of agencies from the County of San Diego, including Otay WD, sent letters to MWD requesting that they implement cost containment measures that could bepassed on to its ratepayers. This was proposed by CWA’s delegates, but it did notpass in committee. There was a suggestion in committee that MWD look atpotential revenues and implement a moratorium on any unplanned expenses in the budget. This suggestion was approved by MWD’s board and the change provided a strong message to MWD that they should not increase costs when they are unableto pass along savings to their ratepayers. President Croucher additionally shared that CWA’s new officers and staff have had several meetings and they have received feedback from some member agencies who have indicated that they felt that their issues have not been heard or that they were heard, but nothing was resolved. He stated that they would be reviewing the feedback and CWA’s process in responding to these concerns. He stated, as new officers, the first thing they address is the board committee assignments and the MWD Delegates performance. He stated that Director Smith and the additional three MWD Delegates have been doing a tremendous job. They are working together better than any team of delegates in the past and they are communicating well with the officers and staff, as well as, building relationships at MWD. He stated that the moratorium on unplanned expenses is one example of what the MWD Delegates have accomplished. This change requires MWD to adhere to their adopted budget and any overruns due to unplanned expense are identified which provides for more transparency. Prior to the change, MWD would continually adjust their budget for unplanned expenses and state at the end of the fiscal year that they were on budget. He also shared with regard to CWA’s appointment of a new General Manager, Ms. Sandy Kerl, that the board wants to hear her vision, ideas and recommendations on how to make things more efficient to keep rates low for CWA’s member agencies. He stated that they would like to also see her lead and develop a new level of communication with member agencies and employees. He reported concerning the MWD litigation, that the 14 to 16 lawsuits are ongoing and CWA will continue to explore different opportunities to augment the region’s water supply sources, such as, Lake Meade storage or agreements for desalination water with Mexico. He shared that the Local Agency Formation Commission (LAFCO) 7 held meetings to discuss Fallbrook PUD and Rainbow MWD’s interest in detaching from CWA and that he and General Manager Martinez will be meeting with Fallbrook PUD next week. He lastly shared that he would be speaking with Otay WD board members to receive their feedback on what can be improved at the CWA level. He also will be working on scheduling a workshop with member agency presidents and general managers to discuss CWA issues. 16. DIRECTORS' REPORTS/REQUESTS Director Thompson indicated that he has submitted a written report to District Secretary Cruz, which will be attached to the minutes for today’s meeting. He thanked President Croucher and Director Smith for the good work they are doing at CWA. Director Smith reported that he has submitted a written report to District Secretary Cruz, which will be attached to the minutes for today’s meeting. Director Gastelum reported that he has also submitted a written report to District Secretary Cruz, which will be attached to the minutes for today’s meeting. Director Robak commented on CWA’s last board meeting stated that he felt moving forward that they would be open and forthright. 17. PRESIDENT’S REPORT President Croucher indicated that he nothing further to report. RECESS TO CLOSED SESSION 18. CLOSED SESSION General Manager Martinez indicated that he did not have anything to report on COVID-19 in closed session. The board recessed to closed session at 4:22 p.m. to discuss the following matter: a) GOVERNMENT CODE §54956.9] OTAY WATER DISTRICT v. CITY OF SAN DIEGO; CASE NO. 37-2017-00019348-CU-WM-CTL RETURN TO OPEN SESSION 19. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION. The board reconvened from closed session at 4:51 p.m. and General Counsel Dan Shinoff reported that the board took no reportable actions in closed session. OTAY WATER DISTRICT FINANCING AUTHORITY 8 20.NO MATTERS TO DISCUSS There were no items scheduled for discussion for the Otay Water District FinancingAuthority board. 21.ADJOURNMENT With no further business to come before the Board, President Croucher adjournedthe meeting at 4:52 p.m. ___________________________________ President ATTEST: District Secretary 9 Board of Directors Meetings Attended Form Director Name: Gary Croucher Period Covered: From: 8/1/20 To: 8/31/20 Item No. Date Meeting Attended Description 1. 9/2/20 OWD Board Meeting OWD Regular Board Meeting 2. 9/16/20 Committee Agenda Briefing Met w/ GM Martinez to review items that will be presented at the September committee meetings 3 . 9/21/20 EO&WR Committee Reviewed and made recommendation on items that will be presented at the October board meeting 4. 9/22/20 CWA Matters Mtg Met with Dir Smith and GM Martinez to discuss CWA matters 5. 9/30/20 Board Agenda Briefing Met with GM Martinez and GC Blumenfeld to review the October Board Meeting Agenda Board of Directors Meetings Attended Form Director Name: Tim Smith Period Covered: From: 9/1/20 To: 9/30/20 Item No. Date Meeting Attended Description 1. 9/2/20 OWD Regular Board Mtg. Monthly Board Meeting (video conf.) 2. 9/21/20 EO&WR Committee Reviewed items that will be presented at the October Board Meeting (video conf.) 3. 9/22/20 CWA Matters Meeting Discuss CWA Matters (video conf.) 4. 9/23/20 East County Caucus Meeting Discuss East County issues with agencies and CWA (video conf.) 5. 6. 7. 8. 9. 10. -Instructions on Reverse - Board of Directors Meetings Attended Form Director Name:Mitchell Thompson Period Covered: From: 9/1/2020 To: 9/30/2020 Item No. Date Meeting Attended Description 1.9/1/20 SCEDC Board Meeting Represent OWD at SCEDC Monthly Board Meeting 2.9/2/20 OWD Board Meeting See agenda, regular monthly board meeting 3.9/8/20 Otay Engineering Group Mtg Discuss Capacity Fees 4.9/22/20 OWD F&A Committee Mtg See agenda 5.9/28/20 Otay Engineering Group Mtg Discuss Capacity Fees 6. 7. 8. 9. 10. -Instructions on Reverse - EXHIBIT B (Director’s Signature) GM Approval: Date: FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ INSTRUCTIONS ON REVERSE OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To: Hector Gastelum Period Covered: Employee Number: 1860 From: 9/1/2020 To: 9/30/2020 ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED MILEAGE HOME to OWD OWD to HOME MILEAGE OTHER LOCATIONS 1 9/1 OWD BOARD MEETING 2 3 4 5 6 7 8 9 10 11 12 13 Total Meeting Per Diem: $152 ($152 per meeting) 0 Total Mileage Claimed: miles Mark Robak 7014 From:9/1/2020 9/30/2020 ITEM DATE MEETING PURPOSE / ISSUES MILEAGE HOME TO OWD OWD TO HOME MILEAGE OTHER LOCATIONS 1 9/1/2020 East County Chamber of Commerce Government Affairs & Infrastructure Committee 0 0 2 9/2/2020 OWD Board Meeting OWD Monthly Board Meeting 0 0 3 9/3/2020 San Diego Regional Chamber Sustainability & Industry Committee 0 0 4 9/9/2020 Discussion with Rebecca Alvarez with NP Strategies Discuss Water Conservation Garden's objectives in preparation for strategic plan 0 0 5 9/15/2020 Council of Water Utilities Virtual meeting with USBR Commissioner, Brenda Burman 0 0 6 9/18/2020 LAFCO Special Districts Advisory Committee Regular meeting 0 0 7 9/22/2020 Finance & Administration Committee Discussed District finance and administration items 0 0 8 9/24/2020 SDCWA Board meeting Monthly meeting 0 0 0 0 $ 1,216 0 Miles GM Receipt: Date: ___________________ FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $_____________ OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To:Period Covered Employee Number Total Mileage Claimed: Director Signature ($152 PER MEETING) Total Meeting Per Diem: 1 MINUTES OF THE BOARD OF DIRECTORS MEETING OF THE OTAY WATER DISTRICT, OTAY WATER DISTRICT FINANCING AUTHORITY, AND OTAY SERVICE CORPORATION December 4, 2020 1.The meeting was called to order by General Manager Jose Martinez at 12:00p.m. 2.ROLL CALL Directors Present: Croucher, Gastelum, Robak, Smith and Thompson Staff Present: General Manager Jose Martinez, General Counsel Dan Shinoff, General Counsel Jeanne Blumenfeld, Chief Financial Officer Joe Beachem, Chief of Operations Pedro Porras, Chief of Engineering Rod Posada, Chief of Administration Adolfo Segura, Asst. Chief of Finance Kevin Koeppen, District Secretary Susan Cruz and others per attached list. 3.PLEDGE OF ALLEGIANCE 4.APPROVAL OF AGENDA A motion was made by Director Thompson, seconded by Director Robak andcarried with the following vote: Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: None to approve the agenda. 5.PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLICTO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THEBOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA No one wished to be heard. 6.DIRECTOR’S COMMENTS Director Gastelum indicated that he enjoyed his experience and work on the board and he wished nothing but the best for the new board members. Director Thompson stated that he came to the Otay WD during a time when therewas a lot of misinformation about the District in the community. He stated after AGENDA ITEM 4 2 his appointment to the board, he found that the Otay WD was a well-run organization with a dedicated board and staff. He indicated that he was grateful for being a part of a great team that is accomplishing excellent work with a noble mission (providing safe and reliable water services at a reasonable cost) for the public. He stated that he was proud of the work he, along with the board and staff, have accomplished on behalf of the ratepayers and he thanked the staff and his colleagues on the board for the wonderful experience. President Smith thanked both Directors Thompson and Gastelum for their service. He stated that, as board members, they understand that they are providing service to the District’s ratepayers. The board represents the ratepayers and provides oversight and input and he felt they both have done an excellent job in representing their ratepayers. Director Robak stated that he and Director Thompson had established a friendship while working on the board and trying to do their best for the District’s ratepayers. He stated that he would be missed and thanked him for his work on the board. He indicated to Director Gastelum that he has learned and grown a lot over the four (4) years that he has served on the board. He thanked him for his contributions and wished him the best and success. Director Croucher concurred with comments made by President Smith and Directors Robak. He stated he appreciated working with Directors Thompson and Gastelum and he was also proud to be part of the Otay WD organization where they work to do their best for its ratepayers. He stated the District has been the third (3rd) lowest cost water agency in the County for some time and just recently moved to the fourth (4th) lowest. He stated that he expects that the District will go back to the 3rd lowest as other local agencies utilized their reserves to keep their water rate low. He indicated the District continues to stay focused on its water rates, reliability and quality. He stated he appreciated the work they did for the District. 7. OATH OF OFFICE CEREMONY District Secretary Susan Cruz administered the oath of office to re-elected Director Mark Robak and newly elected Directors Ryan Keyes and Jose Lopez. The directors were elected in the November 2020 elections to the District’s Divisions 5, 2 and 4 seats, respectively. 8. PRESENTATION OF RECOGNITION PLAQUE TO BOARD PRESIDENT Vice President Robak presented a recognition plaque on behalf of the Board of Directors and staff to Board President Croucher to thank him for his excellence in public service and outstanding leadership as president of the Otay Water District’s board of Directors during the past year. Director Croucher thanked Director Robak and the board and indicated that it was an honor to serve as President during the past year. 9. ELECTION OF BOARD PRESIDENT 3 A motion was made by Director Croucher to elect Director Smith as President, Director Robak as Vice President and Director Lopez as Treasurer. The motion was seconded by Director Robak and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez, Robak and Smith Noes: None Abstain: None Absent: None to elect Director Smith as President, Director Robak and Vice President and Director Lopez as Treasurer. 10.RECESS OTAY WATER DISTRICT BOARD MEETING AND CONVENE AMEETING OF THE OTAY SERVICE CORPORATION The Otay Water District board meeting was recessed at 12:29 p.m. and ameeting of the Otay Service Corporation board was convened. 11.ROLL CALL Directors Present: Croucher, Keyes, Lopez, Robak and Smith 12.ELECTION OF OFFICERS: PRESIDENT, VICE PRESIDENT ANDTREASURER A motion was made by Director Robak, seconded by Director Croucher andcarried with the following vote: Ayes: Directors Croucher, Keyes, Lopez, Robak and Smith Noes: None Abstain: None Absent: None to elect Director Smith as President, Director Robak as Vice President and Director Lopez as Treasurer. 13.APPOINTMENT OF OFFICERS: EXECUTIVE DIRECTOR, CHIEF FINANCIALOFFICER AND SECRETARY A motion was made by Director Croucher, seconded by Director Lopez and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez, Robak and Smith Noes: None Abstain: None Absent: None 4 to appoint General Manager Martinez as Executive Director, Joe Beachem as Chief Financial Officer and District Secretary Susan Cruz as Secretary. 14.ADJOURN OTAY SERVICE CORPORATION BOARD MEETING ANDCONVENE THE OTAY WATER DISTRICT FINANCING AUTHORITY BOARD MEETING President Smith adjourned the Otay Service Corporation board meeting at12:31 p.m. and convened the Otay Water District Financing Authority boardmeeting. 15.ROLL CALL Directors Present: Croucher, Keyes, Lopez, Robak and Smith 16.RE-AFFIRM OFFICERS OF THE OTAY WATER DISTRICT FINANCING AUTHORITY A motion was made by Director Lopez, seconded by Director Robak and carriedwith the following vote: Ayes: Directors Croucher, Keyes, Lopez, Robak and Smith Noes: None Abstain: None Absent: None to elect Director Smith as President, Director Robak as Vice-President, General Manager Martinez as Executive Director, Chief Financial Officer Joe Beachem as Treasurer/Auditor, and District Secretary Susan Cruz as Secretary. 17.ADJOURN OTAY DISTRICT FINANCING AUTHORITY BOARD MEETING AND CONVENE THE OTAY WATER DISTRICT BOARD MEETING President Smith adjourned the Otay District Financing Authority board meeting at12:33 p.m. and reconvened the Otay Water District board meeting. 18.DISCUSSION OF THE 2021 BOARD MEETING CALENDARS There were no changes to the meeting calendar. 19.DIRECTORS' REPORTS/REQUESTS President Smith indicated that he provided his report to District Secretary Cruzwhich will be attached to the minutes of this meeting. Director Robak reported that he attended the ACWA Fall Conference which was held virtually from December 2 to 3, 2020. He noted that most of thepresentations were prerecorded and Mr. Steve Castaneda, a Director fromSouthbay Irrigation District, provided a very good presentation that he felt was 5 very worthwhile. He stated that he hoped the District could meet in person in the near future with the Coronavirus Vaccine beginning distribution. He thanked the ratepayers who are attending this afternoon’s meeting for their support. Director Croucher indicated that he has also submitted his report to District Secretary Cruz and it will be attached to the minutes for today’s meeting. He also shared that he and General Manager Martinez met with the Board Presidents and General Managers of the District’s local surrounding agencies (Helix WD, Lakeside WD, Padre Dam MWD and Sweetwater Authority) and discussed the importance of working together to maximize efficiencies between our agencies. He indicated the District will need to contract a specialty service for the inspection of the lining of a reservoir and they discussed that our agencies are already sharing equipment and that they should consider sharing staff with special expertise (such as the reservoir lining inspections) between our agencies. Director Croucher indicate that it was a good meeting and they had a full discussion that also included thoughts on San Diego County Water Authority (CWA) and individual agencies’ visions. Director Lopez indicated that he is pleased to serve on the Otay WD board once again. He stated that 20 years ago, tomorrow (December 5), he won his election on a coin toss. During that year, there was approximately 5000 votes between him and his opponent and this year there was nearly 16,000 votes between him and his opponent which shows how much growth the District has experienced over the last 20 years. He stated he served 16 years on the District’s board and the most defining and tumultuous year during his service was his first year, 2011, on the board. There were trust issues at that time between members of the board and 911 also hung over that year, but they got through the challenges and implemented a strategic plan that would set the course for many District successes. He stated those successes were accomplished by several current sitting board members (Directors Croucher, Robak and Smith), former board members (Directors Thompson, Bonilla) and former General Manager Mark Watton, and he indicated that he cannot emphasize enough, the employees (current and retired) who dedicated so much to the District. He stated the District still has much to achieve for its ratepayers to gain their acknowledgement and trust that the District is working to take care of business on their behalf. He congratulated Directors Robak and Keyes for their election to the board and thanked his family for all their support. Director Keyes thanked the board and staff for the warm welcome and indicated that it was an honor to be a part of the board. He stated as he walked the community during his campaign, he was made aware of how COVID-19 was impacting businesses, residents and family relations as the pandemic situation stretched for months while they worked to produce a vaccine. He stated it was clear the pandemic was hurting the community and he was encouraged to run for the board to see what could be done to advocate for the ratepayers He noted that the District’s board is similar to a Public Utilities Commission who advocates and develops creative initiatives on how to provide some relief to the ratepayers. He stated he was very much looking forward to working with the District’s board members and staff and was happy to be part of the Otay WD organization. 6 20.PRESIDENT’S REPORT President Smith indicated he is looking forward to returning to normal operations,which Directors Croucher, Lopez and Keyes have also expressed. He stated that returning to normal operations is not just for Otay WD, but for its customers. He stated at the beginning of the pandemic the community was buying bottledwater and the District forwarded postcards to its ratepayers to advise them thattheir tap water was safe to drink. He stated that he felt that getting that messageout was one of the most important actions the District took at that time. The District then transitioned to how they could assist its customers and ceased water shutoffs and late penalty fees for delinquent accounts, which was also mandatedby the State. He noted that these fees are not recoverable costs and would needto be addressed in the District’s budget. He stated that the bigger challenge theDistrict will need to address is when the pandemic ends and customers who have deferred paying their water bills for six (6) or more months now must start paying their outstanding balance. He stated as Proposition 218 limits the District’s abilityto develop special rates for low income/disadvantaged customers, the Board willbe looking for creative solutions for customers that will be unable to catch uptheir payments. One idea is to develop legislation that provides support from the State directly to low income/disadvantaged customers. Sweetwater Authority is taking the lead in this endeavor and the District will be supporting their proposedlegislation. He stated as the District’s representative on CWA and MWD, he hasalso approached them to support the legislation. He lastly shared that he wouldlike the Otay WD to continue to be recognized as a leader in our region in all areas; Finance, Information Technology, Operations, Human Resources, Customer Service, etc. He lastly thanked the Board for electing him as Presidentfor the upcoming year and the staff for all they do. He wished all a happy holidayseason. 21.ADJOURNMENT With no further business to come before the Board, President Smith adjournedthe meeting at 12:53 p.m. ___________________________________ President ATTEST: District Secretary Board of Directors Meetings Attended Form Director Name: Tim Smith Period Covered: From: 11/1/20 To: 11/30/20 Item No. Date Meeting Attended Description 1. 11/4/20 OWD Regular Board Mtg. Monthly Board Meeting (video conf.) 2. 11/16/20 Quarterly Meeting Reviewed Quarterly Update with GM (video conf.) 3. 11/17/20 Council of Water Utilities Meeting Attended Council of Water Utilities Meeting (video conf.) 4. 11/18/20 East County Caucus Meeting Discuss East County issues with agencies and CWA (video conf.) 5. 11/18/20 CWA Matters Meeting (Same Day–NO PER DIEM) Discuss CWA Matters (video conf.) 6. 11/30/20 EO&WR Committee Reviewed items that will be presented at the January Board Meeting (video conf.) 7. 8. 9. 10. -Instructions on Reverse - Board of Directors Meetings Attended Form Director Name:Mitchell Thompson Period Covered: From: 11/1/2020 To: 12/4/2020 Item No. Date Meeting Attended Description 1.11/3/20 SCEDC Board Meeting Represent OWD at SCEDC Monthly Board Meeting 2.11/4/20 OWD Board Meeting See agenda, regular monthly board meeting 3.11/9/20 Quarterly Mtg with GM Discuss Various issues. 4.11/17/20 Council of Water Utilities Mtg. See agenda 5.11/19/20 Otay Chamber of Commerce Bd Mtg Agenda, incl presentation by J. Martinez 6.11/30/20 ACWA JPIA Board Mtg See agenda 7.12/1/20 OWD F&A Committee Mtg Agenda 8.12/4/20 OWD Special Board Meeting Agenda 9. 10. -Instructions on Reverse - 1 Board of Directors Meetings Attended Form Director Name: Gary Croucher Period Covered: From: 11/1/20 To: 11/30/20 Item No. Date Meeting Attended Description 1. 11/4/20 OWD Board Meeting OWD Regular Board Meeting 2. 11/16/20 Meeting w/ Sweetwater Authority Met with Sweetwater Authority General Manager and Board Member to discuss current issues and opportunities 3. 11/17/20 Meeting w/ Rainbow MWD Met w/ General Manager Jose Martinez and Rainbow Board Vice President and General Manager to discuss Rainbow’s Proposed Detachment from CWA 4. 11/18/20 Committee Agenda Briefing Met w/ GM Martinez to review items that will be presented at the November and December committee meetings 5. 11/23/20 CWA Matters Mtg Met with Dir Smith and GM Martinez to discuss CWA matters 6. 11/30/20 EO&WR Committee Reviewed and made recommendation on items that will be presented at the January board meeting Mark Robak 7014 From:11/1/2020 11/30/2020 ITEM DATE MEETING PURPOSE / ISSUES MILEAGE HOME TO OWD OWD TO HOME MILEAGE OTHER LOCATIONS 1 11/3/2020 South County EDC Monthly meeting 0 0 2 11/4/2020 OWD Board Meeting OWD Monthly Board Meeting 0 0 3 11/10/2020 East County Chamber of Commerce Government Affairs & Infrastructure Committee 0 0 4 11/12/2020 Southern California Water Coalition 36th Annual Event and Awards 0 0 5 11/17/2020 Council of Water Utilities San Diego County Gloria Gray of MWD & Gary Croucher SDCWA speakers 0 0 6 11/19/2020 SDCWA Board Meeting Monthly meeting 0 0 7 11/19/2020 CSDA Chapter Quarterly Meeting - NO CHARGE 0 0 8 11/20/2020 County of San Diego Independent Redistricting Commission meeting Selection of Additional Commissioners 0 0 0 0 $ 1,064 0 Miles GM Receipt: Date: ___________________ OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To:Period Covered Employee Number Total Mileage Claimed: Director Signature ($152 PER MEETING) Total Meeting Per Diem: STAFF REPORT TYPE MEETING:Regular Board MEETING DATE: February 3, 2021 SUBMITTED BY: Charles Mederos Utility Services Manager PROJECT: DIV. NO.4 APPROVED BY: Pedro Porras, Chief Water Operations Jose Martinez, General Manager SUBJECT:FINAL PAVING WORK ON OLYMPIC PARKWAY GENERAL MANAGER’S RECOMMENDATION: That the Board authorizes entering into agreement with Kirk Paving in in an amount not-to-exceed $141,980.00 for the final paving work on Olympic Parkway to ensure the road is to code, per the City of Chula Vista regulations. COMMITTEE ACTION: See “Attachment A” PURPOSE: To perform the final asphalt work on Olympic Parkway in a cost-effective and timely manner to ensure the road is to code per the City of Chula Vista regulations. ANALYSIS: On Monday, October 5, 2020, the District experienced a main break of the 20-inch recycled line on Olympic Parkway between Heritage Road and La Media Road in front of Otay Ranch High School in Chula Vista. Staff repaired 23 feet of the 20-inch recycled main and utilized as-needed paving services to ensure the road is safe and in proper conditions as the break caused extensive damage to the road (attachment B). To have AGENDA ITEM 6a 2 the road up to code with the City of Chula Vista, final asphalt work is required. In accordance with the District’s purchasing requirements, bids were solicited for this work on Friday, December 11, 2020 via Periscope Source (formerly BidSync), the District’s online bid solicitation website. On Thursday, December 17, 2020, four prospective contractors attended a mandatory pre-bid conference. The scope of work is to grind and pave two inches of 420 by 42 feet, or approximately 17,640 square feet, with asphalt replaced to be half-inch type 3. Two bids were received by Tuesday, December 29, 2020 deadline: CONTRACTOR TOTAL BID AMOUNT 1 Kirk Paving (Lakeside, CA) $141,980.00 2 RGC General Engineering (Chula Vista, CA) $159,900.00 It should be noted that the lowest responsive and responsible bidder, Kirk Paving, is the District’s current as-needed paving services contractor and has performed all required work in the past with no issues noted. A new CIP for the Olympic Parkway Recycled Water Pipeline will be initiated for FY 2022 as a rehabilitation and replacement project. Staff are considering alternative construction techniques including a cured in-place liner system to minimize the impact to the community, traffic, and roads. These impacts will be included in a preliminary design report to present the alternatives along with schedules, cost, and environmental impacts. FISCAL IMPACT: Joe Beachem, Chief Financial Officer This incident is an insurable event, and a claim has been opened with the District’s insurance carrier Association of California Water Agencies Joint Powers Insurance Authority (ACWA JPIA). The road repair expenses will be submitted to the District’s insurance carrier for reimbursement under the District’s insurance coverage. 3 STRATEGIC GOAL: None. LEGAL IMPACT: None. Attachments: Attachment A – Committee Action Attachment B – Map Attachment C - Photo ATTACHMENT A SUBJECT/PROJECT:OLYMPIC PARKWAY FINAL PAVING WORK COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee reviewed this item at a meeting held on Tuesday, January 19, 2021 and the following comments were made: •Staff recommended that the Board approve an agreement with Kirk Paving in in an amount not-to-exceed $141,980.00 for the final paving work on Olympic Parkway to ensure the road is to code, per the City of Chula Vista regulations. •In response to several questions from the Committee, staff stated that the pipelines are fairly new and indicated that the new CIP for the Olympic Parkway Recycled Water Pipeline will be initiated for FY 2022 as a rehabilitation and replacement project of approximately 5,500 feet of pipeline. Alternative construction and leak detection techniques (i.e cured in-place liner system, insertion meters that involve acoustics, and satellite imagery) will be considered. Upon completion of the discussion, the Committee supported staff’s recommendation and presentation to the full board on the consent calendar. OTAY WATER DISTRICTRECYCLED WATER MAIN REPAIRS20" PVC RW MAIN INSTALLED BY AS-BUILT #336-22 EXHIBIT A\\ O t a y W a t e r D i s t r i c t \ E N G O P E R A T I N G - D o c u m e n t s \ T e c h n i c i a n \ P r o j e c t s \ O W D \ O p e r a t i o n s \ 2 0 - I n c h R W M a i n o n O l y m p i c P k w y \ R W M a i n R e p a i r s o n O l y m p i c P k w y , A s - B u i l t 3 3 6 - 2 2 June 11, 2015WO #15-01342 Sept 13, 2013WO #13-02433 October 6, 2020WO #16096 kj kjkj Otay RanchHigh School La M e d i a R d E Palomar St Olympic P k w y He r i t a g e R d Morgan H i l l D r Teleg r a p h C a n y o n R d EJSt Pershing R d S a n t a C o r a A v e Sta nisl a u s D r Santa Dian a R d T r a i l w o o d A v e Carpinteria S t Birch Rd Irwin St PiedmontSt MonteraSt CarmelAve K i n c a i d A v e ApplegateSt Antioch Ave State St GoldRunRd MonteSerenoAve Li n d s a y S t Sant a L u c i a R d Heatherwo o d A v e W eavervilleS t Ortega S t C arnerosValley S t SantaVenetiaSt Hi llsborough St Lo k o y a Dr E d g e h ill D r Woodcrest St S a n t a M a d e r a A v e Al o n d r a A v e M o n a r cheDr W i n d c h i m e A v e Calle Avila Sa n t a V i c t o r i a R d P e m b e r A v e SierraVerde R d WestmorlandSt S a n t a D e l p h i n a A v e P a c i f i c a A v e O c o n n o r A v e G u s t i n e S t Livingston St VistaSonrisaAve Mann i s A v e Santa Ynez A v e B e l l e n a A v e Via Cap r i Ten a y a L a k e R d Spa rr o w L a k e R d El Prado St L o s C ochesCt Pleasa n t o n Rd Agu i r r e D r Santa Cru z C t Bri d l e v a l e W i n d R i v e r R d La Man c h a P l Valley Bend St Cerrito s C t Tierra Bonita P l U k i a h S t Lodi St L o s P i n o s C t Falcon Peak St Fra n c e s c h i D r H o l l y b r o o k A v e Southview C t Pyramid P e a k S t Sarat o g a C t Del a n o C t L a M e d i a R d H e r i t a g e R d Santa LuciaRd S antaVictoriaRd E Palomar St Telegr a p h C a n y o n R d !\ VICINITY MAP SITE DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ÃÅ54 ÃÅ125 ÃÅ94 ÃÅ905 §¨¦805 FNTS Dec 2020F 0 1,000500 Feet Legend Existing Recycled Water Main 20-Inch PVC RW Main Installed by #336-22 kj RW Main Repairs Notes1. The Install Date for RW mains installedunder as-built #336-22 is November 20, 2002. ATTACHMENT B ATTACHMENT C STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: February 3, 2021 SUBMITTED BY: Michael Long Engineering Manager PROJECT: P2083-001103 DIV. NO. 2 APPROVED BY: Rod Posada, Chief, Engineering Jose Martinez, General Manager SUBJECT: Approval to Increase the Overall Budget for CIP P2083 in an amount not-to-exceed $300,000.00 for the 870-2 Pump Station Replacement Project GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) approve to increase the CIP P2083 budget (870-2 Pump Station Replacement Project) in an amount not-to-exceed $300,000.00 (from $19,550,000.00 to $19,850,000.00). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To increase the overall CIP P2083 budget in an amount not-to-exceed $300,000.00 for the 870-2 Pump Station Replacement Project. This increase is to cover the unanticipated costs for extended construction management, additional third-party pump expert analysis, staff costs, and potential District Counsel costs associated with the on-going mechanical issues that all four (4) main pump systems have experienced since the pump station construction substantial completion was achieved on June 29, 2020. All costs associated with the mechanical issues, resulting in a delayed start-up and full operation of the pump station, have been tracked and continue to be tracked for reimbursement from a potential combination of the contractor and their vendors as it relates to their individual levels of responsibility for the mechanical issues. AGENDA ITEM 6b 2 ANALYSIS: The District’s existing High Head (870-1) and Low Head (571-1) Pump Stations constructed in 1962 and 1966, respectively, have reached the end of their useful lives. The 870-2 Pump Station Project will replace these facilities and includes replacement of existing Reservoir inlet/outlet piping, construction of recirculation system pumps, and a chloramine disinfection booster system. Improvements of the access road and the installation of utilities for electrical, gas, sewer, and communication services are also included. The 870-2 Pump Station Replacement Project also includes the replacement of the 571-1 Reservoir (36.7 MG) floating cover and liner. The 571-1 Reservoir was originally built in 1967. In 1993 the District retrofitted the existing Reservoir to install a reservoir liner and floating cover. The existing liner and floating cover were more than 24 years old and nearing the end of their useful lives. As part of the overall Project, the existing Reservoir outlet stub-out piping located beneath the Reservoir will be replaced, which will allow the new 870-2 Pump Station to simultaneously perform its primary function (pump from the 571-1 Reservoir to the 870-1 Reservoir), recirculate the 571-1 Reservoir, and also achieve a future function (pump from the 571-1 Reservoir to the 624 Pressure Zone). The replacement of the cover and liner under this Project mitigates having to take this critical Reservoir out of service a second time within the next few years. The demolition of the Low Head and High Head Pump Stations will be completed at a later date (not part of this Project) when the new 870-2 Pump Station has been brought on-line and completed its warranty period. At the July 5, 2017 Board Meeting, the Board awarded a construction contract in the amount of $16,925,900.00 to Pacific Hydrotech. Since the award of the construction contract, eight (8) change orders have been approved. As of June 29, 2020, the physical construction of the 870-2 Pump Station was deemed substantially complete (99%) and project startup and 7-day testing operations are anticipated to be complete by February 2020. The Notice of Completion will be filed after the outstanding items and 7-day testing are completed. The requested funds would be expended only if necessary, and some may be required to be reimbursed by the contractor or its vendors. 3 The estimated breakdown of the requested $300,000.00 is as follows: -Extended Construction Management: $60,000 -Third-Party pump expert analysis and tests: $80,000 -Staff costs: $60,000 -Potential District Counsel costs: $100,000 FISCAL IMPACT: Joe Beachem, Chief Financial Officer The total budget for CIP P2083, as approved in the FY 2021 budget, is $19,550,000. Total expenditures, plus outstanding commitments and forecast, are $19,526,855. See Attachment B for the budget detail. Based on a review of the financial budget, the Project Manager anticipates that with a budget increase of $300,000, CIP P2083 will be completed within the new budget amount of $19,850,000. The Finance Department has determined that, under the current rate model, 100% of the funding is available from the Replacement Fund for CIP P2083. 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 District’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 P:\WORKING\CIP P2083 870-2 Pump Station Replacement\Staff Reports\BD 02-03-21 Staff Report 870-2 PS Budget Inc rev3.docx Attachments: Attachment A – Committee Action Attachment B – P2083 Budget Detail Exhibit A – 870-2 Pump Station Project Location Exhibit B - 870-2 Pump Station Project Detail Map ATTACHMENT A SUBJECT/PROJECT: P2083-001103 Approval to Increase the Overall Budget for CIP P2083 in an amount not-to-exceed $300,000.00 for the 870-2 Pump Station Replacement Project COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on January 19, 2021 and the following comments were made: •Staff recommended that the Board approve to increase the CIP P2083 budget (870-2 Pump Station Replacement Project) in an amount not-to-exceed $300,000.00 (from $19,550,000.00 to $19,850,000.00). •The Committee commented that although it would be nice to complete the project in a timely manner, it is more important to ensure that the 870-2 Pump Station provides a safe work environment for staff members once it is completed. •In response to several questions from the Committee, staff stated that they are closely monitoring the project’s cost and will seek reimbursement for unanticipated issues. It was noted that the District is retaining approximately $500,000 for outstanding issues mostly related to mechanical installation by vendors. •Staff indicated that a demolition plan for the existing pump station is included in a separate CIP budget that was developed last fiscal year. Following the discussion, the committee supported staff’s recommendation and presentation to the full board as a consent item. ATTACHMENT B – P2083 Budget Detail SUBJECT/PROJECT: P2083-001103 Approval to Increase the Overall Budget for CIP P2083 in an amount not-to-exceed $300,000.00 for the 870-2 Pump Station Replacement Project 1/12/2021 Budget 19,550,000 Planning Consultant Contracts 84,616 84,616 - 84,616 HELIX ENVIRONMENTAL17,094 17,094 - 17,094 JONES & STOKES ASSOCIATES INC 211,296 211,296 - 211,296 ICF JONES & STOKES INC Regulatory Agency Fees 2,109 2,109 - 2,109 CA DEPT OF FISH & WILDLIFE720 720 - 720 CALIFORNIA REGIONAL WATER 1,570 1,570 - 1,570 SAN DIEGO COUNTY WATER AUTH 3,924 3,924 - 3,924 STATE WATER RESOURCES Service Contracts 2,260 2,260 - 2,260 COUNTY OF SAN DIEGO164 164 - 164 SAN DIEGO DAILY TRANSCRIPT 505 505 - 505 THE SAN DIEGO UNION-TRIBUNE Standard Salaries 233,775 233,775 - 233,775 Fixed Asset 580,444 580,444 - 580,444 Total Planning 1,138,478 1,138,478 - 1,138,478 Design 001102 Consultant Contracts 136 136 - 136 THE WATCHLIGHT CORPORATION Consultant Contracts 4,850 4,850 - 4,850 BURKETT & WONG ENGINEERS INC14,068 14,068 - 14,068 SOUTHERN CALIFORNIA SOIL 3,034 3,034 - 3,034 RICK ENGINEERING COMPANY 4,625 4,625 - 4,625 ROGER B WOODHULL 22,149 22,149 - 22,149 NINYO & MOORE GEOTECHNICAL AND10,484 10,484 - 10,484 HUNSAKER & ASSOCIATES 6,086 6,086 - 6,086 HDR ENGINEERING INC 682,870 682,870 - 682,870 CAROLLO ENGINEERS INC 7,974 7,974 - 7,974 AEGIS ENGINEERING MGMT INCRegulatory Agency Fees 3,694 3,694 - 3,694 SAN DIEGO GAS & ELECTRIC 18,348 18,348 - 18,348 COUNTY OF SAN DIEGO Service Contracts 98 98 - 98 DAILY JOURNAL CORPORATIONStandard Salaries 677,054 677,054 - 677,054 Supplier Contracts 5,350 5,350 - 5,350 INLAND AERIAL SURVEYS INC Total Design 1,460,820 1,460,820 - 1,460,820 Construction Construction Contracts 790 790 - 790 CLARKSON LAB & SUPPLY INC14,092,223 14,092,223 - 14,092,223 PACIFIC HYDROTECH CORPORATION 738,919 738,919 - 738,919 PACIFIC WESTERN BANK Consultant Contracts 437,691 425,389 12,302 437,691 CAROLLO ENGINEERS INC 1,319 1,319 - 1,319 NINYO & MOORE GEOTECHNICAL AND10,240 10,240 - 10,240 NV5 INC 17,623 17,623 - 17,623 RBF CONSULTING 1,038,300 1,038,300 - 1,038,300 MICHAEL BAKER INT'L INC - - ALYSON CONSULTING438 438 - 438 NINYO & MOORE GEOTECHNICAL INFRASTRUCTURE EQUIPMENT & MATERIALS1,281 1,281 - 1,281 MALLORY SAFETY & SUPPLY LLC OTHER AGENCY FEES 339,493 339,493 - 339,493 SAN DIEGO GAS & ELECTRICParking and Tolls 29 29 - 29 PETTY CASH CUSTODIAN Professional Legal Fees 276 276 - 276 ARTIANO SHINOFF 280 280 - 280 STUTZ ARTIANO SHINOFF Regulatory Agency Fees 11,758 11,758 - 11,758 COUNTY OF SAN DIEGOSecurity Services 41,112 41,112 - 41,112 WATCHLIGHT CORPORATION Service Contracts 3,628 3,628 - 3,628 MAYER REPROGRAPHICS INC 119 119 - 119 SAN DIEGO DAILY TRANSCRIPT Standard Salaries 192,039 192,039 - 192,039 Total Construction 16,927,556 16,915,255 12,302 16,927,556 Grand Total 19,526,855 19,514,553 12,302 19,526,855 Vendor/Comments Otay Water Districtp2083-PS - 870-2 Pump Station Repl Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost OTAY WATER DISTRICT870-2 PUMP STATIONLOCATION MAP EXHIBIT A CIP P2083F P: \ W O R K I N G \ C I P P 2 0 8 3 8 7 0 - 2 P u m p S t a t i o n R e p l a c e m e n t \ 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 , L o c a t i o n M a p , M a y 2 0 1 6 . m x d ROLLRESERVOIR(571-1) LOW HEADPUMP STATION HIGH HEADPUMPSTATION FOR PROJECT DETAILSEE EXHIBIT B ACCESS FROMALTA RD OWD PROPERTY LINE(APPROX) FirearmsTrainingFacility VICINITY MAP PROJECT SITE NTSDIV 5 DIV 1 DIV 2 DIV 4 DIV 3 !\ ?ò Aä ?Ë ;&s ?p F 0 250125 Feet OTAY WATER DISTRICT870-2 PUMP STATIONPROJECT DETAIL MAP EXHIBIT B CIP P2083F P: \ W O R K I N G \ C I P P 2 0 8 3 8 7 0 - 2 P u m p S t a t i o n R e p l a c e m e n t \ 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 B , P r o j e c t D e t a i l M a p , M a y 2 0 1 6 . m x d 0 10050 Feet Legend ExistingEasementOWD ExistingParcelOWD ExistingEasementSDGE ProposedStructure ProposedWater ProposedStormDrain ProposedSewer ProposedGas ProposedSiteCivil ExistingWaterOWD STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: February 3, 2021 SUBMITTED BY: Lisa Coburn-Boyd Environmental Compliance Specialist CIP./G.F. NO: D1087- 090462 DIV. NO. 2 APPROVED BY: Bob Kennedy, Engineering Manager Rod Posada, Chief, Engineering Jose Martinez, General Manager SUBJECT: Approval of Water Supply Assessment Report (December 2020) for the County of San Diego Otay Hills Project GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) approve the Water Supply Assessment Report (WSA Report) dated December 2020 for the County of San Diego Otay Hills Project, as required by Senate Bill 610 (see Exhibit A for Project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board approval of the December 2020 WSA Report for the County of San Diego Otay Hills Project, as required by Senate Bill 610 (SB 610). ANALYSIS: The County of San Diego (County) submitted a request to the District for a WSA Report, pursuant to SB 610. SB 610 requires that, upon the request of a City or County, a water purveyor, such as the District, prepare a water supply assessment report to be included in the California Environmental Quality Act (CEQA) environmental documentation. SB 610 requires the City or County to evaluate whether water supplies will be sufficient to meet the projected water demand for certain “projects” that are AGENDA ITEM 7a 2 otherwise subject to the requirement of the CEQA. The requirements of SB 610 are addressed by the December 2020 WSA Report for this Project. The WSA Report was prepared by the District in consultation with Dexter Wilson Engineering, Inc., the San Diego County Water Authority (Water Authority), and the County. Prior to transmittal to the County, the WSA Report must be approved by the Board of Directors. An additional explanation of the intent of SB 610 is provided in Exhibit B. The County of San Diego Otay Hills Project WSA Report is provided as Exhibit C. The Otay Hills project is located 0.5 miles east of the intersection of Otay Mesa Road and Alta Road in the unincorporated County of San Diego area known as East Otay Mesa. The proposed project is a construction of an aggregate quarry and inert debris engineered landfill operation proposed on an impact area of 105 acres of a 410-acre site. The remaining approximately 305 acres will be designated as biological open space. The proposed project entitlement requires a Specific Plan Amendment, a Major Use Permit, and Reclamation Plan for surface mining and processing of construction aggregates and backfilling the pit with inert debris, as part of an Inert Debris Engineered Fill Operation (IDEFO). All mining, materials processing, and the IDEFO would occur on the designated 105 acres. The full duration of the project would be approximately 120 years. The expected potable water demand for the Otay Hills project is 44,680,630 gallons per year (GPY)or about 137.1 acre-feet per year (AFY). This amount is less than the water use projected for this property by the District’s current planning documents, including the 2015 Water Facilities Master Plan Update and the 2015 Urban Water Management Plan. The District prepared the WSA Report in consultation with Dexter Wilson Engineering, Inc., the Water Authority, and the County, which demonstrates and documents that sufficient water supplies are planned for and are intended to be made available over a 20- year planning horizon under normal supply conditions, in single and multiple-dry years to meet the projected demand of the Otay Hills project and other planned development projects within the District. 3 FISCAL IMPACT: Joe Beachem, Chief Financial Officer The District has been reimbursed $5,000 for all costs associated with the preparation of the County of San Diego Otay Hills Project WSA Report. The reimbursement was accomplished via a $5,000 deposit the Project proponents placed with the District. STRATEGIC GOAL: The preparation and approval of the WSA Report for the County of San Diego Otay Hills 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: Approval of a WSA Report for the County of San Diego Otay Hills Project in form and content satisfactory to the Board of Directors would allow the District to comply with the requirements of Senate Bill 610. LC-B/BK:jf https://otaywater365.sharepoint.com/sites/engoperating/Shared Documents/Engineering/Planning/Water Supply Assessments/Otay Hills Project/BD 02-03-21, Staff Report, City of San Diego Otay Hills Project WSA Report (LCB- BK).docx Attachments: Attachment A – Committee Action Exhibit A – Location Map Exhibit B – Explanation of the Intent of SB 610 Exhibit C – County of San Diego Otay Hills Project WSA Report Exhibit D – PowerPoint Presentation ATTACHMENT A SUBJECT/PROJECT: D1087-090462 Approval of Water Supply Assessment Report (December 2020) for the County of San Diego Otay Hills Project COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on January 19, 2021 and the following comments were made: •Staff recommended that the Board approve the December 2020 WSA Report for the County of San Diego Otay Hills Project, as required by Senate Bill 610 (SB 610). •The Committee inquired about the project’s water source. Staff indicated that potable water will be the main source for the project but noted that the project will be doing some internal recycling of water (approximately 95% of the water used for washing aggregate will be recycled). Staff noted that District recycled water is not available for use in Otay Mesa. •In response to a question from the Committee, staff stated that the developer has reimbursed the District for costs related to the preparation of the project’s water supply assessment report. Following the discussion, the committee supported staff’s recommendation and presentation to the full board as an action item. EXHIBIT B Background Information The Otay Water District (District) prepared the December 2020 Water Supply Assessment (WSA) Report for the County of San Diego Otay Hills Project at the request of the County of San Diego (County). The County’s WSA request letter dated December 10, 2020 was received electronically by the District on December 11, 2020 so the 90-day deadline for the District to provide the Board an approved WSA&V Report to the County ends March 10, 2021. The County of San Diego’s Otay Hills Project is located within the jurisdictions of the District, the San Diego County Water Authority (Water Authority), and the Metropolitan Water District of Southern California (MWD). See Exhibit A for Project location. To obtain permanent imported water supply service, land areas are required to be within the jurisdictions of the District, Water Authority, and MWD. The December 2020 WSA Report for the County of San Diego Otay Hills Project has been prepared by the District in consultation with Dexter Wilson Engineering, Inc., the Water Authority, and the County, pursuant to Public Resources Code Section 21151.9 and California Water Code Sections 10631, 10656, 10910, 10911, 10912, and 10915 referred to as Senate Bill (SB) 610. SB 610 amended state law, effective January 1, 2002, intending to improve the link between information on water supply availability and certain land use decisions made by cities and counties. SB 610 requires that the water purveyor of the public water system prepare a water supply assessment to be included in the California Environmental Quality Act (CEQA) environmental documentation and approval process of certain proposed projects. The requirements of SB 610 are addressed in the December 2020 WSA Report for the County of San Diego Otay Hills Project. The expected potable water demand for the County of San Diego Otay Hills Project is 44,680,630 gallons per year (GPY) or about 137.1 acre-feet per year (AFY). Therefore, based on the findings from the Otay WD’s 2015 Urban Water Management Plan (UWMP) and the Water Authority’s 2015 UWMP, this Project will result in no unanticipated demands. The District currently depends on the Water Authority and the MWD for all of its potable water supplies and regional water resource planning. The District’s 2015 UWMP relies heavily on the UWMP’s and Integrated Water Resources Plans (IRPs) of the Water Authority and MWD for documentation of supplies available to meet projected demands. These plans are developed to manage the uncertainties and variability of multiple supply sources and demands over the long-term through preferred water resources strategy adoption and resource development target approvals for implementation. MWD, in January 2016, approved the update of their Integrated Water Resources Plan (IRP). The 2015 IRP Update describes an adaptive management approach to mitigate against future water supply uncertainty. The new uncertainties that are significantly affecting California’s water resources include: •The State Water Project (SWP) supplies which are affected by a changingclimate and the operational constraints in the ecologically struggling Sacramento- San Joaquin Delta. •Periodic extended drought conditions. These uncertainties have rightly caused concern among Southern California water supply agencies regarding the validity of the current water supply documentation. MWD is currently involved in several proceedings concerning Delta operations to evaluate and address environmental concerns. In addition, at the State level, the Delta Vision and Bay-Delta Conservation Plan processes are defining long-term solutions for the Delta. The SWP represents approximately 9% of MWD’s 2025 Dry Resources Mix, with the supply buffer included. A 22% cutback in SWP supply represents an overall 2% (22% of 9% is 2%) cutback in MWD supplies in 2025. Neither the Water Authority nor MWD has stated that there is insufficient water for future planning in Southern California. Each agency is in the process of reassessing and reallocating their water resources. Under preferential rights, MWD can allocate water without regard to historic water purchases or dependence on MWD. Therefore, the Water Authority and its member agencies are taking measures to reduce dependence on MWD through development of additional supplies and a water supply portfolio that would not be jeopardized by a preferential rights allocation. As calculated by MWD, the Water Authority’s current preferential right is 18.27% of MWD’s supply, while the Water Authority accounted for approximately 22% of MWD’stotal revenue. So MWD could theoretically cut back the Water Authority’s supply andtheoretically, the Water Authority should have alternative water supply sources to make up for the difference. In the Water Authority’s 2015 UWMP, they had already planned to reduce reliance on MWD supplies. This reduction is planned to be achieved through diversification of their water supply portfolio. The Water Authority’s Water Shortage Contingency Plan (August 2017) provides the Water Authority and its member agencies with a series of potential actions to engage when faced with a shortage of imported water supplies due to prolonged drought conditions. Such actions help avoid or minimize impacts of shortages and ensure an equitable allocation of supplies throughout the San Diego County region. The Otay Water District Board of Directors could acknowledge the ever-present challenge of balancing water supply with demand and the inherent need to possess a flexible and adaptable water supply implementation strategy that can be relied upon during normal and dry weather conditions. The responsible regional water supply agencies have and will continue to adapt their resource plans and strategies to meet climatological, environmental, and legal challenges so that they may continue to provide water supplies to their service areas. The regional water suppliers (i.e., the Water Authority and MWD), along with the District, fully intend to maintain sufficient reliable supplies through the 20-year planning horizon under normal, single, and multiple-dry year conditions to meet projected demand of the County of San Diego Otay Hills Project, along with existing and other planned development projects within the District’s service area. If the regional water suppliers determine additional water supplies will be required, or in this case, that water supply portfolios need to be reassessed and redistributed with the intent to serve the existing and future water needs throughout Southern California, the agencies must indicate the status or stage of development of actions identified in the plans they provide. MWD’s 2015 IRP update will then cause the Water Authority to update its IRP, which will then provide the District with the necessary water supply documentation. Identification of a potential future action in such plans does not by itself indicate that a decision to approve or to proceed with the action has been made. The District’s Board approval of the Approval of Water Supply Assessment Report (December 2020) for the County of San Diego Otay Hills Project WSA Report does not in any way guarantee water supply to the Project. Alternatively, if the WSA&V Report is written to state that water supply is or will be unavailable; the District must include, in the assessment, a plan to acquire additional water supplies. At this time, the District should not state there is insufficient water supply. At the present time, based on the information available, the District is able to clearly describe the current water supply situation, indicating intent to provide supply through reassessment and reallocation by the regional, as well as the local water suppliers. In doing so, it is believed that the Board has met the intent of the SB 610 statute, that the land use agencies and the water agencies are coordinating their efforts in planning water supplies for new development. With District Board approval of the County of San Diego Otay Hills Project WSA Report, the County of San Diego Otay Hills Project can proceed with the environmental documentation required for the CEQA review process. The water supply issues will be addressed in these environmental documents, consistent with the WSA Report. The District, as well as others, can comment on the draft EIR with recommendations that water conservation measures and actions be employed on the County of San Diego Otay Hills Project. Some recent actions regarding water supply assessments and verification reports by Otay Water District are as follows: •The Board approved the water supply assessment report for the Otay 250Sunroad East Otay Mesa Business Park Specific Plan Amendment Project onJuly 6, 2016. •The Board approved the water supply assessment report for the City of ChulaVista University Innovation District Project on October 5, 2016. •The Board approved the water supply assessment report for the Otay Ranch Resort Village Project on May 2, 2018. •The Board approved the water supply assessment report for the County of San Diego Otay Ranch Village 14 and Planning Area 16/19 Proposed Project Amendment on February 5, 2020. Water supplies necessary to serve the demands of the proposed County of San Diego Otay Hills Project, along with existing and other projected future users, as well as the actions necessary to develop these supplies, have been identified in the water supply planning documents of the District, the Water Authority, and MWD. The WSA Report includes, among other information, an identification of existing water supply entitlements, water rights, water service contracts, or agreements relevant to the identified water supply needs for the proposed County of San Diego Otay Hills Project. The WSA Report demonstrates and documents that sufficient water supplies are planned and are intended to be available over a 20-year planning horizon, under normal conditions and in single and multiple-dry years, to meet the projected demand of the proposed and the existing and other planned development projects within the District. Accordingly, after approval of a WSA Report for the County of San Diego Otay Hills Project by the District's Board of Directors, the WSA Report may be used to comply with the requirements of the legislation enacted by Senate Bills 610 as follows: Senate Bill (SB) 610 Water Supply Assessment: The District's Board of Directors approved WSA&V Report may be incorporated into the California Environmental Quality Act (CEQA) compliance process for the County of San Diego Otay Hills Project as a water supply assessment report consistent with the requirements of the legislation enacted by SB 610. The County of San Diego, as lead agency under the CEQA for the County of San Diego Otay Hills Project environmental documentation, may cite the approved WSA Report as evidence that a sufficient water supply is planned and intended to be available to serve the County of San Diego Otay Hills Project. OTAY WATER DISTRICT WATER SUPPLY ASSESSMENT REPORT for the County of San Diego Otay Hills Project D1087-090462 Prepared by: Lisa Coburn-Boyd Environmental Compliance Specialist and Bob Kennedy, P.E. Engineering Manager Otay Water District In consultation with Dexter Wilson Engineering, Inc. And San Diego County Water Authority December 2020 EXHIBIT C Otay Water District Water Supply Assessment Report Otay Hills Project Otay Water District Water Supply Assessment Report December 2020 Otay Hills Project Table of Contents Executive Summary .................................................................................................................. 1 Section 1 - Purpose .................................................................................................................... 5 Section 2 - Findings ................................................................................................................... 6 Section 3 - Project Description ................................................................................................ 8 Section 4 – Otay Water District ............................................................................................... 9 Section 5 – Historical and Projected Water Demands ........................................................ 12 5.1 Demand Management (Water Conservation) ..................................................... Section 6 - Existing and Projected Supplies ......................................................................... 19 6.1 Metropolitan Water District of Southern California 2015 Urban Water Management Plan ......................................................................................... 20 6.1.2 MWD Capital Investment Plan .......................................................... 21 6.2 San Diego County Water Authority Regional Water Supplies ................ 21 6.2.1 Availability of Sufficient Supplies and Plans for Acquiring Additional Supplies ............................................................................................. 23 6.2.1.2 All-American Canal and Coachella Canal Lining Projects .. 30 6.2.1.3 Carlsbad Seawater Desalination Project ............................... 34 6.2.2 Water Authority Capital Improvement Program and Financial Information ........................................................................... 37 6.3 Otay Water District ...................................................................................... 38 6.3.1 Availability of Sufficient Supplies and Plans for Acquiring Additional Supplies ............................................................................................. 38 6.3.1.1 Imported and Regional Supplies ........................................... 39 6.3.1.2 Recycled Water Supplies ...................................................... 41 Section 7 – Conclusion: Availability of Sufficient Supplies ................................................ 48 Source Documents ................................................................................................................... 54 Appendices Appendix A: Otay Hills Project Location and Vicinity Maps Otay Water District Water Supply Assessment Report Otay Hills Project 1 Otay Water District Water Supply Assessment Report December 2020 Otay Hills Project Executive Summary The Otay Water District (Otay WD) prepared this Water Supply Assessment Report (WSA Report) at the request of the County of San Diego (County) for the Otay Hills project. Otay Hills Project Overview and Water Use The Otay Hills project is located within the jurisdictions of the Otay WD, the San Diego County Water Authority (Water Authority), and the Metropolitan Water District of Southern California (MWD). In order to obtain permanent imported water supply service, land areas are required to be within the jurisdictions of the Otay WD, Water Authority, and MWD. The proposed project requires a Specific Plan Amendment (SPA), Major Use Permit (MUP), and Reclamation Plan for surface mining and processing of construction aggregates and backfilling the pit with inert debris, as part of an Inert Debris Engineered Fill Operation (IDEFO). All mining, materials processing, and the IDEFO would occur on approximately 105 acres in the unincorporated community of East Otay Mesa in south San Diego County. The full duration of the project would be approximately 120 years. Under the California Surface Mining and Reclamation Act of 1975 (SMARA) (Public Resources Code Section 2719 et seq.), all extractive operations are required to have a Reclamation Plan approved by the Lead Agency. A reclamation plan defines the activities to be carried out when extraction has been completed at a particular site. The extracted land use must be returned to a useful, approved alternative purpose. Lead agencies are certified by the State Board of Mining and Geology after the adoption of ordinances that embody the requirements of SMARA. Through the adoption of Ordinance 87.701 and as further clarified in Section 6556 of the County Zoning Ordinance, San Diego County has been recognized as the Lead Agency for the implementation of SMARA. The project proposes to establish a mineral resource recovery operation and associated activities to create construction aggregates and materials to serve the economy of San Diego County for an approximate 87 year period. During and after mineral resource recovery operations, the open pit will serve as a receiver site for inert debris such as concrete, asphalt, rock, and soil. The project is located within a 410 acre ownership with a plant site and extractive operations proposed on 105 acres of the site. The balance of the 410 acre ownership would be placed in biological open space prior to aggregate recovery activities. Otay Water District Water Supply Assessment Report Otay Hills Project 2 Approximately 85.4 million tons of mineral resource would be extracted from the site and over 31 million cubic yards of inert debris would be received over an approximately 115 year period. Anticipated operations at the site would include the following activities: •Phased recovery of rock resources •Materials processing •Concrete batch plant •Cement treated base plant •Asphalt base plant •Recycle of asphalt and concrete products •Inert debris engineered fill operation (IDEFO) The expected potable water demand for the Otay Hills project is 44,680,630 gallons per year (gpy) or about 137.1 acre feet per year (AFY). This is less than the water use projected for this property by Otay WD in their planning documents, including the 2015 Water Facilities Master Plan (WFMP) Update and the 2015 Urban Water Management Plan (UWMP). The demand for the project is accounted for in other applicable planning documents, including the Water Authority’s 2015 UWMP. As documented in the Water Authority’s 2015 UWMP, the Water Authority is planning to meet future and existing demands. Therefore, based on the findings from the Otay WD’s 2015 UWMP and the Water Authority’s 2015 UWMP, this project will result in no unanticipated demands. Planned Imported Water Supplies from the Water Authority and MWD The Water Authority and MWD have an established process that ensures supplies are being planned to meet future growth. Any annexations and revisions to established land use plans are captured in the San Diego Association of Governments (SANDAG) updated forecasts for land use planning, demographics, and economic projections. SANDAG serves as the regional, intergovernmental planning agency that develops and provides forecast information. The Water Authority and MWD update their demand forecasts and supply needs based on the most recent SANDAG forecast approximately every five years to coincide with preparation of their UWMP’s. Prior to the next forecast update, local jurisdictions with land use authority may require water supply assessment and/or verification reports for proposed land developments that are not within the Otay WD, Water Authority, or MWD jurisdictions (i.e. pending or proposed annexations) or that have revised land use plans with either lower or higher development intensities than reflected in the existing growth forecasts. Proposed land areas with pending or proposed annexations, or revised land use plans, typically result in creating higher demand and supply requirements than previously anticipated. The Otay WD, Otay Water District Water Supply Assessment Report Otay Hills Project 3 Water Authority, and MWD next demand forecast and supply requirements and associated planning documents would then capture any increase or decrease in demands and required supplies as a result of annexations or revised land use planning decisions. An important planning document utilized by MWD, the Water Authority and Otay WD is the Integrated Resources Plan (IRP) which describes an agency’s long-term water plan. MWD’s 2015 IRP offers an adaptive management strategy to protect the region from future supply shortages. This adaptive management strategy has five components: achieve additional conservation savings, develop additional local water supplies, maintain Colorado River Aqueduct supplies, stabilize State Water Project supplies, and maximize the effectiveness of storage and transfer. MWD’s 2015 IRP has a plan for identifying and implementing additional resources that expand the ability for MWD to meet future changes and challenges as necessary to ensure future reliability of supplies. The proper management of these resources help to ensure that the southern California region, including San Diego County, will have adequate water supplies to meet long-term future demands. Another important planning document is the UWMP. The California Urban Water Management Planning Act (Act), which is included in the California Water Code, requires all urban water suppliers within the state to prepare an UWMP and update it every five years. The purpose and importance of the UWMP has evolved since it was enacted in 1983. State agencies and the public frequently use the document to determine if agencies are planning adequately to reliably meet future demands. As such, UWMPs serve as an important element in documenting supply availability for the purpose of compliance with state laws, Senate Bill 610, linking water supply sufficiency to large land-use development approval. Agencies must also have a UWMP prepared, pursuant to the Act, in order to be eligible for state funding and drought assistance. MWD’s 2015 UWMP Findings state that MWD has supply capabilities that would be sufficient to meet expected demands from 2020 through 2040. MWD has plans for supply implementation and continued development of a diversified resource mix including programs in the Colorado River Aqueduct, State Water Project, Central Valley Transfers, local resource projects, and in-region storage that enables the region to meet its water supply needs. The County Water Authority Act, Section 5 subdivision 11, states that the Water Authority “as far as practicable, shall provide each of its member agencies with adequate supplies of water to meet their expanding and increasing needs.” As part of preparation of a written water supply assessment report, an agency’s water shortage contingency analysis should be considered in determining sufficiency of supply. Section 11 of the Water Authority’s 2015 UWMP Update contains a detailed shortage contingency analysis that addresses a regional catastrophic shortage situation and drought management. The analysis demonstrates that the Water Authority and its member agencies, through the Integrated Contingency Plan, Emergency Storage Project, and Water Shortage Contingency Plan are taking actions to prepare for and appropriately handle an interruption of water supplies. The Water Shortage Contingency Plan provides the Water Authority and its Otay Water District Water Supply Assessment Report Otay Hills Project 4 member agencies with a series of potential actions to take when faced with a shortage of imported water supplies from MWD due to prolonged drought or other supply shortfall conditions. The actions will help the region avoid or minimize the impacts of shortages and ensure an equitable allocation of supplies. Water supply agencies throughout California continue to face climate, environmental, legal, and other challenges that impact water source supply conditions, such as the court rulings regarding the Sacramento-San Joaquin Delta issues and reoccurring droughts impacting the western states. Even with these ever-present challenges, the Water Authority and MWD, along with Otay WD fully intend to have sufficient, reliable supplies to serve demands. Otay Water District Water Supply Development Program In evaluating the availability of sufficient water supply, the Otay Hills project will be required to participate in the water supply development program being implemented by the Otay WD. This is intended to be achieved through financial participation in several local and/or regional water supply development projects envisioned by the Otay WD. These water supply projects are in addition to those identified as sustainable supplies in the current Water Authority and MWD UWMP, IRP, Master Plans, and other planning documents, and are in response to the regional water supply issues. These new water supply projects are not currently developed and are in various stages of the planning process. Imported water supplies along with the development of these additional Otay WD water supply development projects supplies are intended to increase water supplies to serve the Otay Hills project water supply needs and that of other similar development projects. The Otay WD water supply development program includes but is not limited to projects such as the Middle Sweetwater River Basin Groundwater Well project, the Rancho del Rey Groundwater Well Project, the Otay Mesa Lot 7 Groundwater Well Project, and the Otay WD Rosarito Ocean Desalination Facility Project. The Water Authority and MWD’s next forecasts and supply planning documents would capture any increase in water supplies resulting from any new water resources developed by the Otay WD. Findings The WSA Report identifies and describes the processes by which water demand projections for the proposed Otay Hills project will be fully included in the water demand and supply forecasts of the Urban Water Management Plans and other water resources planning documents of the Water Authority and MWD. Water supplies necessary to serve the demands of the proposed project, along with existing and other projected future users, as well as the actions necessary and status to develop these supplies, have been identified in the Otay Hills project WSA Report and will be included in the future water supply planning documents of the Water Authority and MWD. This WSA Report includes, among other information, an identification of existing water supply entitlements, water rights, water service contracts, water supply projects, or Otay Water District Water Supply Assessment Report Otay Hills Project 5 agreements relevant to the identified water supply needs for the proposed Otay Hills project. The WSA Report demonstrates and documents that sufficient water supplies are planned for and are intended to be available over a 20-year planning horizon, under normal conditions and in single and multiple dry years to meet the projected demand of the Otay Hills project and the existing and other planned development projects to be served by the Otay WD. Accordingly, after approval of a WSA Report for the Otay Hills project by the Otay WD Board of Directors (Board), the WSA Report may be used to comply with the requirements of the legislation enacted by Senate Bill 610 as follows: 1. Senate Bill 610 Water Supply Assessment: The Otay WD Board approved WSA Report may be incorporated into the California Environmental Quality Act (CEQA) Environmental Impact Report (EIR) compliance process for the Otay Hills project as a water supply assessment report consistent with the requirements of the legislation enacted by SB 610. The County, as lead agency under CEQA for the Otay Hills project EIR and Alternatives, may cite the approved WSA Report as evidence that a sufficient water supply is planned for and is intended to be made available to serve the Otay Hills project. The Otay Hills Project development concept exceeds the thresholds contained in the legislation enacted by SB 610 and therefore requires preparation of a WSA report. The Otay Hills Project is considered as an industrial development and is not a residential subdivision project of more than 500 units and hence it is not subject to the requirements of Senate Bill 221 for preparation of a Water Supply Verification Report. Section 1 - Purpose The County of San Diego is having an environmental impact report (EIR) prepared for the development of the 410-acre project (Otay Hills project). The project is located at the terminus of East Calzada De La Fuente in the unincorporated County of San Diego area known as East Otay Mesa. The County requested that the Otay WD prepare a Water Supply Assessment (WSA) Report for the Otay Hills project. This WSA Report is being prepared for the proposed project concurrent with the EIR processing through the County of San Diego. The Otay Hills project description is provided in Section 3 of this WSA Report. This WSA Report for the Otay Hills project has been prepared by the Otay WD in consultation with Dexter Wilson Engineering, Inc., the Water Authority, and the County pursuant to Public Resources Code Section 21151.9 and California Water Code Sections 10631, 10656, 10910, 10911, 10912, and 10915 referred to as Senate Bill (SB) 610. SB 610 amended state law, effective January 1, 2002, is intended to improve the link between the Otay Water District Water Supply Assessment Report Otay Hills Project 6 information on water supply availability and certain land use decisions made by cities and counties. SB 610 requires that the water purveyor of the public water system prepare a water supply assessment to be included in the CEQA documentation and approval process of certain proposed projects. The requirements of SB 610 are being addressed by this WSA Report. This WSA Report evaluates water supplies that are planned to be available during normal, single dry year, and multiple dry water years during a 20-year planning horizon to meet existing demands, expected demands of the Otay Hills project, and reasonably foreseeable planned future water demands to be served by Otay WD. The Otay Water District Board of Directors approved WSA Report is planned to be used by the County in its evaluation of the Otay Hills project under the CEQA approval process procedures. Section 2 - Findings The Otay WD prepared this WSA Report at the request of the County for the Otay Hills project. The Otay Hills project is located within the jurisdictions of the Otay WD, the Water Authority, and MWD. To obtain permanent imported water supply service, land areas are required to be within the jurisdictions of the Otay WD, Water Authority, and MWD to utilize imported water supply. The expected potable water demand for the Otay Hills project is 44,680,630 gallons per year (gpy) or about 137.1 acre feet per year (AFY). This is less than the water demand projected for this property by the Otay WD in their planning documents. The demand for the project is accounted for in applicable planning documents, including the Water Authority’s 2015 UWMP In addition, the next update of the demand forecast for the Water Authority’s 2020 UWMP will be based on SANDAG’s most recently updated forecast, which will include the Project. Therefore, based on the findings from the Otay WD’s 2015 UWMP and the Water Authority’s 2015 UWMP, this project will result in no unanticipated demands. The Water Authority and MWD have an established process that ensures supplies are being planned to meet future growth. Any annexations and revisions to established land use plans are captured in the San Diego Association of Governments (SANDAG) updated forecasts for land use planning, demographics, and economic projections. SANDAG serves as the regional, intergovernmental planning agency that develops and provides forecast information. The Water Authority and MWD update their demand forecasts and supply needs based on the most recent SANDAG forecast approximately every five years to coincide with preparation of their urban water management plans. Prior to the next forecast update, local jurisdictions may require water supply assessment and/or verification reports for proposed land developments that are not within the Otay WD, Water Authority, or MWD jurisdictions (i.e. pending or Otay Water District Water Supply Assessment Report Otay Hills Project 7 proposed annexations) or that have revised land use plans with lower or higher land use intensities than reflected in the existing growth forecasts. Proposed land areas with pending or proposed annexations, or revised land use plans, typically result in creating higher demand and supply requirements than anticipated. The Otay WD, the Water Authority, and MWD next demand forecast and supply requirements and associated planning documents would then capture any increase or decrease in demands and required supplies as a result of annexations or revised land use planning decisions. This process is utilized by the Water Authority and MWD to document the water supplies necessary to serve the demands of the Otay Hills project, along with existing and other projected future users, as well as the actions necessary to develop any required water supplies. Through this process the necessary demand and supply information is thus assured to be identified and incorporated within the water supply planning documents of the Water Authority and MWD. This WSA Report includes, among other information, an identification of existing water supply entitlements, water rights, water service contracts, proposed water supply projects, and agreements relevant to the identified water supply needs for the proposed Otay Hills project. This WSA Report incorporates by reference the current Urban Water Management Plans and other water resources planning documents of the Otay WD, the Water Authority, and MWD. The Otay WD prepared this WSA Report to assess and document that sufficient water supplies are planned for and are intended to be acquired to meet projected water demands of the Otay Hills project as well as existing and other reasonably foreseeable planned development projects within the Otay WD for a 20-year planning horizon, in normal supply years and in single dry and multiple dry years. The Otay Water District 2015 UWMP includes a water conservation component to comply with Senate Bill 7 of the Seventh Extraordinary Session (SBX 7-7), which became effective February 3, 2010. This new law was the water conservation component to the Delta legislation package, and seeks to achieve a 20 percent statewide reduction in urban per capita water use in California by December 31, 2020. Specifically, SBX 7-7 from this Extraordinary Session requires each urban retail water supplier to develop urban water use targets to help meet the 20 percent reduction goal by 2020 (20x2020), and an interim water reduction target by 2015. Otay WD adopted Method 1 to set its 2015 interim and 2020 water use targets. Method 1 requires setting the 2020 water use target to 80 percent of baseline per capita water use target as provided in the State’s 20x2020 Water Conservation Plan. The Otay WD 2015 target was 172 gpcd which it met (2015 actual was 124 gpcd) and the 2020 gpcd target (80 percent of baseline) is 153 gpcd. The Otay WD’s recent per capita water use has been declining and current water use meets the 2020 target as calculated using Method 1. The decline in per capita water use was due to drought water use restrictions, increased water costs, and economic conditions. Otay WD’s effective water use awareness campaign and enhanced conservation mentality of its customers has resulted in long-term carryover of these reduced consumption rates. Otay Water District Water Supply Assessment Report Otay Hills Project 8 Based on a normal water supply year, the five-year increments for a 20-year projection indicate projected potable and recycled water supply is being planned for and is intended to be acquired to meet the estimated water demand targets of the Otay WD per the Otay Water District 2015 UWMP. Based on dry year forecasts, the estimated water supply is also being planned for and is intended to be acquired to meet the projected water demand, during single dry and multiple dry year scenarios. On average, the dry-year demands are about 6.64 percent higher than the normal year demands. The Otay WD recycled water supply is assumed to be drought-proof and not subject to reduction during dry periods. Together, these findings assess, demonstrate, and document that sufficient water supplies are planned for and are intended to be acquired for the project. In addition, the actions necessary to develop these supplies are and will be further documented, to serve the proposed project and the existing and other reasonably foreseeable planned development projects within the Otay WD in both normal and single and multiple dry year forecasts for a 20-year planning horizon. Section 3 - Project Description The Otay Hills project is located at the terminus of East Calzada De La Fuente in the unincorporated County of San Diego area known as East Otay Mesa. Refer to Appendix A for a vicinity map of the proposed Otay Hills project. The project is proposed to be located on 410 acres with activity taking place on 105 acres and the remainder placed into biological open space. Although the proposed development is located within the County and subject to the County’s land use jurisdiction, the Otay WD is the potable water purveyor. The Otay Hills project is within the jurisdictions of the Otay WD, the Water Authority, and MWD. The proposed project requires a Specific Plan Amendment (SPA), Major Use Permit (MUP), and Reclamation Plan for surface mining and processing of construction aggregates and backfilling the pit with inert debris, as part of an Inert Debris Engineered Fill Operation (IDEFO). All mining, materials processing, and the IDEFO would occur on approximately 105 acres in the unincorporated community of East Otay Mesa in south San Diego County. The full duration of the project would be approximately 120 years. The project proposes to establish a mineral resource recovery operation and associated activities to create construction aggregates and materials to serve the economy of San Diego County for an approximate 87 year period. During and after mineral resource recovery operations, the open pit will serve as a receiver site for inert debris such as concrete, asphalt, rock, and soil. The project is located within a 410 acre ownership with a plant site and extractive operations proposed on 105 acres of the site. The balance of the 410 acre ownership would be placed in biological open space prior to aggregate recovery activities. Approximately 85.4 million tons of mineral resource would be extracted from the site and Otay Water District Water Supply Assessment Report Otay Hills Project 9 over 31 million cubic yards of inert debris would be received over an approximately 115 year period. Anticipated operations at the site would include the following activities: • Phased recovery of rock resources • Materials processing • Concrete batch plant • Cement treated base plant • Asphalt base plant • Recycle of asphalt and concrete products • Inert debris engineered fill operation (IDEFO) The County has discretionary authority on land use decisions for the Otay Hills project and can establish actions and/or permit approval requirements. The projected potable water demands associated with the Otay Hills project EIR has considered the anticipated County discretionary actions and/or permit approvals and are incorporated into and used in this WSA Report. The water demands for the proposed Otay Hills project are included in the projected water demand estimates provided in Section 5 – Historical and Projected Water Demands. Section 4 – Otay Water District The Otay WD is a municipal water district formed in 1956 pursuant to the Municipal Water District Act of 1911 (Water Code §§ 71000 et seq.). The Otay WD joined the Water Authority as a member agency in 1956 to acquire the right to purchase and distribute imported water throughout its service area. The Water Authority is an agency responsible for the wholesale supply of water to its 24 public agency members in San Diego County. The Otay WD currently meets all its potable demands with imported treated water from the Water Authority. The Water Authority is the agency responsible for the supply of imported water into San Diego County through its membership in MWD. The Water Authority currently obtains about 40% of its imported supply from MWD but is in the process of further diversifying its available supplies. The Otay WD provides water service to residential, commercial, industrial, and agricultural customers, and for environmental and fire protection uses. In addition to providing water throughout its service area, Otay WD also provides sewage collection and treatment services to a portion of its service area known as the Jamacha Basin. The Otay WD also owns and operates the Ralph W. Chapman Water Reclamation Facility (RWCWRF) which has an effective treatment capacity of 1.2 million gallons per day (mgd) or about 1,300 acre feet per Otay Water District Water Supply Assessment Report Otay Hills Project 10 year to produce recycled water. On May 18, 2007, an additional source of recycled water supply of up to 6 mgd, or about 6,720 acre feet per year, became available to Otay WD from the City of San Diego’s South Bay Water Reclamation Plant (SBWRP). The Otay WD jurisdictional area is generally located within the south central portion of San Diego County and includes approximately 125 square miles. The Otay WD serves portions of the unincorporated communities of southern El Cajon, La Mesa, Rancho San Diego, Jamul, Spring Valley, Bonita, and Otay Mesa, the eastern portion of the City of Chula Vista and a portion of the City of San Diego on Otay Mesa. The Otay WD jurisdiction boundaries are roughly bounded on the north by the Padre Dam Municipal Water District, on the northwest by the Helix Water District, and on the west by the South Bay Irrigation District (Sweetwater Authority) and the City of San Diego. The southern boundary of Otay WD is the international border with Mexico. The planning area addressed in the Otay WD WFMP Update and the Otay WD 2015 UWMP includes both the land within the jurisdictional boundary of the Otay WD and those areas outside of the present Otay WD boundaries considered to be in the Area of Influence of the Otay WD. Figure 3-1 contained within the Otay WD 2015 UWMP shows the jurisdictional boundary of the Otay WD and the Area of Influence. The planning area is approximately 143 square miles, of which approximately 125 square miles are within the Otay WD current boundaries and approximately 18 square miles are in the Area of Influence. The area east of Otay WD is rural and currently not within any water purveyor jurisdiction and potentially could be served by the Otay WD in the future if the need for imported water becomes necessary, as is the case for the Area of Influence. The City of Chula Vista, the City of San Diego, and the County of San Diego are the three land use planning agencies within the Otay WD jurisdiction. Data on forecasts for land use planning, demographics, economic projections, population, and the future rate of growth within Otay WD were obtained from the San Diego Association of Governments (SANDAG). SANDAG serves as the regional, intergovernmental planning agency that develops and provides forecast information through the year 2050. Population growth within the Otay WD service area is expected to increase from the 2015 figure of 217,339 to an estimated 285,340 by 2040. Land use information used to develop water demand projections are based upon Specific or Sectional Planning Areas, the Otay Ranch General Development Plan/Sub- regional Plan, East Otay Mesa Specific Plan Area, San Diego County Community Plans, and City of San Diego, City of Chula Vista, and County of San Diego General Plans. The Otay WD long-term historic growth rate has been approximately 4 percent. The growth rate had slowed due to economic conditions and is expected to slow as the inventory of developable land is diminished. Climatic conditions within the Otay WD service area are characteristically Mediterranean near the coast, with mild temperatures year-round. Inland areas are both hotter in summer and cooler in winter, with summer temperatures often exceeding 90 degrees and winter temperatures occasionally dipping to below freezing. Most of the region’s rainfall occurs Otay Water District Water Supply Assessment Report Otay Hills Project 11 during the months of December through March. Average annual rainfall is approximately 10.08 inches per year. Historic climate data were obtained from the Western Regional Climate Center for Station 042706 (El Cajon). This station was selected because its annual temperature variation is representative of most of the Otay WD service area. While there is a station in the City of Chula Vista, the temperature variation at the City of Chula Vista station is more typical of a coastal environment than the conditions in most of the Otay WD service area. Urban Water Management Plan In accordance with the California Urban Water Management Planning Act and recent legislation, the Otay WD Board of Directors adopted an UWMP in June 2016 and subsequently submitted the plan to the California Department of Water Resources (DWR). As required by law, the Otay Water District 2015 UWMP includes projected water supplies required to meet future demands through 2040. In accordance with Water Code Section 10910 (c)(2) and Government Code Section 66473.7 (c)(3), information from the Otay WD 2015 UWMP along with supplemental information from the Otay WD WFMP Update have been utilized to prepare this WSA Report and are incorporated herein by reference. The state Legislature passed Senate Bill 7 as part of the Seventh Extraordinary Session (SBX 7-7) on November 10, 2009, which became effective February 3, 2010. This new law was the water conservation component to the Delta legislation package and seeks to achieve a 20 percent statewide reduction in urban per capita water use in California by December 31, 2020. Specifically, SBX 7-7 from this Extraordinary Session requires each urban retail water supplier to develop urban water use targets to help meet the 20 percent reduction goal by 2020 (20x2020), and an interim water reduction target by 2015. The SBX 7-7 target setting process includes the following: (1) baseline daily per capita water use; (2) urban water use target; (3) interim water use target; (4) compliance daily per capita water use, including technical bases and supporting data for those determinations. In order for an agency to meet its 2020 water use target, each agency can increase its use of recycled water to offset potable water use and also step up its water conservation measures. The required water use targets for 2020 and an interim target for 2015 are determined using one of four target methods – each method has numerous methodologies. In 2015, urban retail water suppliers were required to report interim compliance followed by actual compliance in 2020. Interim compliance is halfway between the baseline water use and 2020 target. Baseline, target, and compliance-year water use estimates are required to be reported in gallons per capita per day (gpcd). Failure to meet adopted targets will result in the ineligibility of a water supplier to receive grants or loans administered by the State unless one (1) of two (2) exceptions is met. Exception one (1) states a water supplier may be eligible if they have submitted a schedule, financing plan, and budget to DWR for approval to achieve the per capita water use Otay Water District Water Supply Assessment Report Otay Hills Project 12 reductions. Exception two (2) states a water supplier may be eligible if an entire water service area qualifies as a disadvantaged community. Otay WD adopted Method 1 to set its 2015 interim and 2020 water use targets. Method 1 requires setting the 2020 water use target to 80 percent of baseline per capita water use target as provided in the State’s 20x2020 Water Conservation Plan. The Otay WD was well below its required 2015 target of 172 gpcd, with an actual 2015 gpcd of 124. The 2020 gpcd target which is 80 percent of baseline is 153 gpcd. The Otay WD’s recent per capita water use has been declining to the point where current water use meets the 2020 target for Method 1. The decline in per capita water use was due to drought water use restrictions, increased water costs, and economic conditions. Otay WD’s effective water use awareness campaign and the enhanced conservation mentality of its customers has resulted in long-term carryover of these reduced consumption rates. Section 5 – Historical and Projected Water Demands The projected demands for Otay WD are based on Specific or Sectional Planning Areas, the Otay Ranch General Development Plan/Sub-regional Plan, the East Otay Mesa Specific Plan Area, San Diego County Community Plans, and City of San Diego, City of Chula Vista, and County of San Diego General Plans. This land use information is also used by SANDAG as the basis for its most recent forecast data. This land use information was utilized for the preparation of the Otay Water District WFMP Update and Otay Water District 2015 UWMP to develop the forecasted demands and supply requirements. In 1994, the Water Authority selected the Institute for Water Resources-Municipal and Industrial Needs (MAIN) computer model to forecast municipal and industrial water use for the San Diego region. The MAIN model uses demographic and economic data to project sector-level water demands (i.e. residential and non-residential demands). This econometric model has over a quarter of a century of practical application and is used by many cities and water agencies throughout the United States. The Water Authority’s version of the MAIN model was modified to reflect the San Diego region’s unique parameters and is known as CWA-MAIN. The foundation of the water demand forecast is the underlying demographic and economic projections. This was a primary reason why, in 1992, the Water Authority and SANDAG entered into a Memorandum of Agreement (MOA) in which the Water Authority agreed to use the SANDAG current regional growth forecast for water supply planning purposes. In addition, the MOA recognizes that water supply reliability must be a component of San Diego County’s regional growth management strategy required by Proposition C, as passed by the San Diego County voters in 1988. The MOA ensures a strong linkage between local general plan land use forecasts and water demand projections and resulting supply needs for the San Diego region. Otay Water District Water Supply Assessment Report Otay Hills Project 13 Consistent with the previous CWA-MAIN modeling efforts, on October 15, 2013, the SANDAG Board of Directors accepted the Series 13: 2050 Regional Growth Forecast. The 2050 Regional Growth Forecast will be used by SANDAG as the foundation for the next Regional Comprehensive Plan update. SANDAG forecasts were used by local governments for planning, including the Water Authority 2015 UWMP update. The municipal and industrial forecast also included an updated accounting of projected conservation savings based on projected regional implementation of the California Urban Water Conservation Council (CUWCC) Best Management Practices and SANDAG demographic information for the period 2015 through 2050. These savings estimates were then factored into the baseline municipal and industrial demand forecast. Agricultural demand projections were developed through a cooperative effort between Water Authority staff, Water Authority member agencies, SANDAG, County of San Diego Agricultural Weights and Measures, and the California Avocado Commission. Forecast driver variables include irrigated acreage within the Water Authority’s service area, estimated crop type distribution, and calculated historic water-use factors. SANDAG’s projection of agricultural land conversions to other land use categories provides the long-term trend in acreage used to forecast agricultural water use. The total agricultural forecast is then separated into two categories: (1) projected demands in the Water Authority’s Transitional Special Agricultural Water Rate (TSAWR) program and (2) demands under the Water Authority M&I rate or agricultural demands met through local supplies. The Water Authority and MWD update their water demand and supply projections within their jurisdictions utilizing the SANDAG most recent growth forecast to project future water demands. This provides for the important strong link between demand and supply projections to the land use plans of the cities and the county. This provides for consistency between the retail and wholesale agencies water demand projections, thereby ensuring that adequate supplies are and will be planned for the Otay WD existing and future water users. Existing land use plans, any revisions to land use plans, and annexations are captured in the SANDAG updated forecasts. The Water Authority and MWD update their demand forecasts based on the SANDAG most recent forecast approximately every five years to coincide with preparation of their urban water management plans. Prior to the next forecast update, local jurisdictions may require water supply assessment and/or verification reports consistent with Senate Bills 610 and 221 for proposed land use developments that either have pending or proposed annexations into the Otay WD, Water Authority, and MWD or that have revised land use plans than originally anticipated. The Water Authority and MWD’s next forecasts and supply planning documents would then capture any increase or decrease in demands caused by annexations or revised land use plans. In evaluating the availability of sufficient water supply, the Otay Hills project proponents are required to participate in the development of alternative water supply project(s). This can be achieved through payment of the Meter Capacity Fee adopted by the Otay WD Board in November 2020. The water supply projects that are included in the Meter Capacity Fee are in Otay Water District Water Supply Assessment Report Otay Hills Project 14 addition to those identified as sustainable supplies in the current Water Authority and MWD UWMP, IRP, Master Plans, and other planning documents. These new water supply projects are in response to the regional water supply issues related to the Sacramento-San Joaquin Delta and the current ongoing western states drought conditions. These additional water supply projects are not currently developed and are in various stages of the planning process. A few examples of these alternative water supply projects include the Middle Sweetwater River Basin Groundwater Well project, the Rancho del Rey Groundwater Well Project, the Otay Mesa Lot 7 Groundwater Well Project and the Otay WD Rosarito Ocean Desalination Facility project. The Water Authority and MWD next forecast and supply planning documents would capture any increase in water supplies resulting from verifiable new water resources developed by the Otay WD. In addition, MWD’s 2015 UWMP identified potential reserve supplies in the supply capability analysis (Tables 2-4, 2-5, and 2-6), which could be available to meet any unanticipated demands. The Water Authority and MWD’s next forecasts and supply planning documents would capture any increase in necessary supply resources resulting from any new water supply resources. Demand Methodology The Otay WD water demand projection methodology in the WFMP Update utilizes a component land use approach. This is done by applying representative values of water use to the acreage of each land use type and then aggregating these individual land use demand projections into an overall total demand for the Otay WD. This is called the water duty method, and the water duty is the amount of water used in gallons per day per acre per year. This approach is used for all the land use types except residential development where a demand per dwelling unit was applied. In addition, commercial and industrial water use categories are further subdivided by type including separate categories for golf courses, schools, jails, prisons, hospitals, etc. where specific water demands are established. To determine water duties for the various types of land use, the entire water meter database of the Otay WD is utilized and sorted by the appropriate land use types. The metered consumption records are then examined for each of the land uses, and water duties are determined for the various types of residential, commercial, industrial, and institutional land uses. For example, the water duty factors for commercial and industrial land uses are estimated using 1,785 and 893 gallons per day per acre (gpd/acre) respectively. Residential water demand is established based on the same data but computed on a per-dwelling unit basis. The focus is to ensure that for each of the residential land use categories (very low, low, medium, and high densities), the demand criteria used is adequately represented based upon actual data. This method is used because residential land uses constitute a substantial percentage of the total developable planning area of the Otay WD. The WFMP Update calculates potable water demand by taking the gross acreage of a site and applying a potable water reduction factor (PWRF), which is intended to represent the percentage of acreage to be served by potable water and that not served by recycled water for Otay Water District Water Supply Assessment Report Otay Hills Project 15 irrigation. For industrial land use, as an example, the PWRF is 0.95 (i.e., 95% of the site is assumed to be served by potable water, 5% of the site is assumed to be irrigated with recycled water, if available). The potable net acreage is then multiplied by the unit demand factor corresponding to its respective land use. This approach is used in the WFMP Update for all the land use types except residential development where a demand per dwelling unit is applied. In addition, commercial and industrial water use categories are further subdivided by type including separate categories for golf courses, schools, jails, prisons, hospitals, etc. where specific water demands are allocated. Otay Water District Projected Demand By applying the established water duties to the proposed land uses, the projected water demand for the entire Otay WD planning area at ultimate development is determined. Projected water demands for the intervening years were determined using growth rate projections consistent with data obtained from SANDAG and the experience of the Otay WD. The historical and projected potable water demands for Otay WD are shown in Table 1. Table 1 Historical and Projected Potable Water Fiscal Year Demands (acre-feet) Water Use Sectors 2010 2015 2020 2025 2030 2035 2040 Single Family Residential 17,165 16,228 14,039 19,806 20,752 20,649 23,224 Multi-Family Residential 3,605 3,460 3,807 6,732 7,342 7,585 8,837 Commercial, Industrial & Institutional 4,110 4,953 4,728 7,949 8,653 8,923 10,378 Landscape 3,732 4,079 3,582 4,600 4,700 4,900 5,200 AFG* - University I. D. 11.7 11.7 11.7 11.7 11.7 AFG – PA 12 46 46 46 46 46 AFG – Otay 250 836 836 836 836 836 AFG – Sunbow II Phase 3 84.7 84.7 84.7 84.7 Near-term Annexations 2,973 2,973 2,973 2,973 2,973 Other 2,563 1,578 292 470 470 470 470 Totals 31,175 30,298 30,315 43,508 45,868 46,478 52,060 Source: Otay Water District 2015 UWMP. *Accelerated Forecasted Growth Increment Otay Hills Project Proposed Projected Water Demand Otay Water District Water Supply Assessment Report Otay Hills Project 16 Based on demand projection methodologies for other similar facilities, the projected potable water demands for the proposed Otay Hills project are shown in Table 2. The projected potable water demand is 44,680,630 gpy, or about 137.1 ac-ft/yr. Table 2 Otay Hills Project Projected Potable Water Annual Average Demands Equipment/ Process Description Total Average Water Demand, gpy Total Average Water Demand, AFY Aggregate Plant Production, Dust Control, Water Truck 20,925,629 64.2 Ready Mix Concrete Plant 1,000 CY Production 15,000,000 46.0 Cement Treated Base Plant 200 Ton Production 359,281 1.1 Hot Mix Asphalt Plant 1,000 Ton Production 250,000 0.8 IDEFO Inert Debris Engineered Fill Operation 8,145,720 25.0 TOTAL 137.1 5.1 Demand Management (Water-Use Efficiency) Demand management, or water-use efficiency is a critical part of the Otay Water District’s 2015 Urban Water Management Plan (UWMP) and its long-term strategy for meeting the water supply needs of its customers. Water conservation is frequently the lowest cost resource available to any water agency. The Otay WD’s water conservation program objectives are to: • Reduce the demand for more expensive, imported water. • Ensure a reliable water supply. The Otay WD was one of the original signatories to the Memorandum of Understanding (MOU) regarding Urban Water Conservation in California, which created the California Urban Water Conservation Council (CUWCC) in 1991 in an effort to reduce California's long-term water demands. The Otay WD has been a Otay Water District Water Supply Assessment Report Otay Hills Project 17 long-standing supporter of the CUWCC through its implementation of Best Management Practices (BMPs), which required the District to submit biannual reports that detailed the implementation of its conservation programs. As a result of the 2014- 2017 drought and the state’s changing regulatory, political, social, economic, and environmental climate, CUWCC members and its Board, in 2017, restructured the organization and renamed it the California Water Efficiency Partnership (CWEP). The new framework allows the organization to better fulfill its members’ needs, quickly adapt to the changing climate, provide resources about water-use efficiency issues in California, and foster collaboration among a wide variety of stakeholders. The Otay WD is currently a member of CWEP as part of its effort to continue upholding its long-term commitment in reducing the state’s water demands, diversifying local water supply, and encouraging its customer to make conservation a way of life. In addition to meeting customer demands during a drought, the District consistently advocates for state policies and legislation that include supply development and water-use efficiency. The District continues to work closely with the Water Authority, the Association of California Water Agencies, and other water agencies in the region to ensure that the targets and measures in the State Water Resources Control Board’s (SWRCB) long-term framework support a balanced approach and reflect local water supply investments and conditions. Water conservation programs are developed and implemented on the premise that water conservation increases the local water supply by reducing the demand on available imported supply, which is vital to the optimal utilization of a region's water supply resources. The Otay WD participates in many water conservation programs designed and typically operated on a shared cost-participation program basis among the Water Authority, MWD, and their member agencies. The demands shown in Tables 1 and 2 take into account implementation of water conservation measures within Otay WD. As part of the preceding CUWCC’s BMPs requirements, the Otay WD implemented water conservation programs and provided services to its customers to promote water-use efficiencies and water savings. It continues to do so today. As a member of the Water Authority, Otay WD also benefits from regional programs performed on behalf of its member agencies. In partnership with the Water Authority, the County of San Diego, City of San Diego, City of Chula Vista, and developers, the Otay WD water-use efficiency efforts are expected to grow and expand. The resulting savings directly relate to additional available water in the San Diego County region for beneficial use within the Water Authority service area, including the Otay WD. Additional conservation or water-use efficiency measures or programs practiced by the Otay WD include the following: Supervisory Control and Data Acquisition System Otay Water District Water Supply Assessment Report Otay Hills Project 18 The Otay WD implemented and has operated for many years a Supervisory Control and Data Acquisition (SCADA) system to control, monitor, and collect data regarding the operation of the water system. The major facilities that have SCADA capabilities are the water-flow control supply sources, transmission network, pumping stations, and water storage reservoirs. The SCADA system allows for many and varied useful functions. Some of the functions they provide for operating personnel are the ability to monitor the water supply source flow rates, reservoir levels, tum on or off pumping units, etc. The SCADA system aids in the prevention of water reservoir overflow events and increases energy efficiency. Water Conservation Ordinance California Water Code Sections 375 et seq. permit public entities, which supply retail water to adopt and enforce a water conservation program to reduce the quantity of water used by the customers, resulting in the conservation of water supplies for that public entity. In 1988, the Otay WD Board of Directors established a comprehensive water conservation program pursuant to California Water Code Sections 375 et seq., based upon the need to conserve water supplies and to avoid or minimize the effects of any future shortage. A water shortage could exist based upon the occurrence of one or more of the following conditions: 1. A general water supply shortage due to increased demand or limited supplies. 2. Distribution or storage facilities of the Water Authority or other agencies become inadequate. 3. A major failure of the supply, storage, and distribution facilities of MWD, Water Authority, and/or Otay WD. The Otay WD water conservation ordinance specifies that the conditions prevailing in the San Diego County area require that the available water resources be put to maximum beneficial use to the extent to which they are capable, and that the waste or unreasonable use, or unreasonable method of use, of water be prevented. In addition, the ordinance encourages the conservation of such water with a view to the maximum reasonable and beneficial use thereof in the interests of the people of the Otay WD and for the public welfare. Otay WD continues to promote water-use efficiency and conservation at community and business events, including those involving developers in its service area. In addition, Otay WD, working with the Water Authority and MWD manages a number of programs. Otay WD is currently engaged in a number of conservation and water-use efficiency activities. Listed below are programs that either are current or have been concluded: Otay Water District Water Supply Assessment Report Otay Hills Project 19 • Residential Water Surveys • Large Landscape Surveys • Cash for Water Smart Plants Landscape Retrofit Program • Rotating Nozzles Rebates • Residential Weather-Based Irrigation Controller (WBIC) Incentive Program • Residential High Efficiency Clothes Washers • Residential ULFT/HET Rebate Program • Outreach Efforts to Otay WD Customers - the Otay WD promotes its conservation programs through outreach at community and business events, bill inserts, articles in the Otay WD's quarterly customer Pipeline newsletter, direct mailings to Otay WD customers, the Otay WD's webpage and social media platforms, and through the Water Authority's marketing efforts. • School Education Programs - the Otay WD funds school tours of the Water Conservation Garden and school assemblies, co-funds Splash Labs, and maintains school-age appropriate water-themed books, DVDs, and videos. • Water efficiency in new construction through Cal Green and the Model Water Efficient Landscape Ordinance • Focus on Commercial/Institutional/Industrial through Promoting MWD's Save a Buck (Commercial) Program in conjunction with the Otay WD's own Commercial Process Improvement Program • Landscape Contest for homeowners in the Otay WD’s service area The county’s residents and businesses also exceeded the SWRCB’s emergency water-use reduction mandates during 2015 and 2016, and they continue to use less water than they did in 2013 even though drought conditions have ended. Since the SWRCB’s conservation mandate began in June 2015, Otay customers have saved an average of 14 percent more water compared to 2013 water-use totals. Section 6 - Existing and Projected Supplies The Otay WD currently does not have an independent raw or potable water supply source. The Otay WD is a member public agency of the Water Authority and the Water Authority is a member public agency of MWD. The statutory relationships between the Water Authority and its member agencies, and MWD and its member agencies, respectively, establish the scope of the Otay WD entitlement to water from these two agencies. The Water Authority currently supplied the Otay WD with 100 percent of its potable water through two delivery pipelines, referred to as Pipeline No. 4 and the Helix Flume Pipeline. The Water Authority in turn, currently purchases the majority of its water from MWD. Due to the Otay WD reliance on these two agencies, this WSA Report includes referenced documents that contain information on the existing and projected supplies, supply programs, Otay Water District Water Supply Assessment Report Otay Hills Project 20 and related projects of the Water Authority and MWD. The Otay WD, Water Authority, and MWD are actively pursuing programs and projects to further diversify their water supply resources. The description of local recycled water supplies available to the Otay WD is also discussed below. 6.1 Metropolitan Water District of Southern California 2015 Urban Water Management Plan MWD has prepared its 2015 UWMP which was adopted on May 9, 2016. The 2015 UWMP provides MWD’s member agencies, retail water utilities, cities, and counties within its service area with, among other things, a detailed evaluation of the supplies necessary to meet future demands, and an evaluation of reasonable and practical efficient water uses, recycling, and conservation activities. During the preparation of the 2015 UWMP, MWD utilized the previous SANDAG regional growth forecast in calculating regional water demands for the Water Authority service area. 6.1.1 Availability of Sufficient Supplies and Plans for Acquiring Additional Supplies MWD is a wholesale supplier of water to its member public agencies and obtains its supplies from two primary sources: the Colorado River, via the Colorado River Aqueduct (CRA), which it owns and operates, and Northern California, via the State Water Project (SWP). The 2015 UWMP documents the availability of these existing supplies and additional supplies necessary to meet future demands. MWD’s IRP identifies a mix of resources (imported and local) that, when implemented, will provide 100 percent reliability for full-service demands through the attainment of regional targets set for conservation, local supplies, State Water Project supplies, Colorado River supplies, groundwater banking, and water transfers. The 2015 update to the IRP (2015 IRP Update) describes an adaptive management strategy to protect the region from future supply shortages. This adaptive management strategy has five components: achieve additional conservation savings, develop additional local water supplies, maintain Colorado River Aqueduct supplies, stabilize State Water Project supplies, and maximize the effectiveness of storage and transfer. MWD’s 2015 IRP Update has a plan for identifying and implementing additional resources that expand the ability for MWD to meet future changes and challenges as necessary to ensure future reliability of supplies. The proper management of these resources help to ensure that the southern California region, including San Diego County, will have adequate water supplies to meet long-term future demands. In May 2016, MWD adopted its 2015 UWMP in accordance with state law. The resource targets included in the preceding 2015 IRP Update serve as the foundation for the planning assumptions used in the 2015 UWMP. MWD’s 2015 UWMP contains a water supply Otay Water District Water Supply Assessment Report Otay Hills Project 21 reliability assessment that includes a detailed evaluation of the supplies necessary to meet demands over a 20-year period in average, single dry year, and multiple dry year periods. As part of this process, MWD also uses the current SANDAG regional growth forecast in calculating regional water demands for the Water Authority’s service area. As stated in MWD’s 2015 UWMP, the plan may be used as a source document for meeting the requirements of SB 610 until the next scheduled update is completed in 5 years (2020). The 2015 UWMP includes a “Justifications for Supply Projections” in Appendix A.3, that provides detailed documentation of the planning, legal, financial, and regulatory basis for including each source of supply in the plan. A copy of MWD’s 2015 UWMP can be found on the internet at the following site address: http://www.mwdh2o.com/PDF_About_Your_Water/2015_UWMP.pdf The UWMP updates for both MWD and the Water Authority included the increase in demand projections included in SANDAG’s Series 13 Update and from the projections from Otay Water District WFMP Update. Water supply agencies throughout California continue to face climate, environmental, legal, and other challenges that impact water source supply conditions, such as the court rulings regarding the Sacramento-San Joaquin Delta and the current western states drought conditions. Challenges such as these essentially always will be present. The regional water supply agencies, the Water Authority and MWD, along with Otay WD nevertheless fully intend to have sufficient, reliable supplies to serve demands. 6.1.2 MWD Capital Investment Plan MWD prepares a Capital Investment Plan as part of its annual budget approval process. The cost, purpose, justification, status, progress, etc. of MWD’s infrastructure projects to deliver existing and future supplies are documented in the Capital Investment Plan. The financing of these projects is addressed as part of the annual budget approval process. MWD’s Capital Investment Plan includes a series of projects identified from MWD studies of projected water needs, which, when considered along with operational demands on aging facilities and new water quality regulations, identify the capital projects needed to maintain infrastructure reliability and water quality standards, improve efficiency, and provide future cost savings. All projects within the Capital Investment Plan are evaluated against an objective set of criteria to ensure they are aligned with the MWD’s goals of supply reliability and quality. 6.2 San Diego County Water Authority Regional Water Supplies The Water Authority has adopted plans and is taking specific actions to develop adequate water supplies to help meet existing and future water demands within the San Diego region. Otay Water District Water Supply Assessment Report Otay Hills Project 22 This section contains details on the supplies being developed by the Water Authority. A summary of recent actions pertaining to development of these supplies includes: • In accordance with the Urban Water Management Planning Act, the Water Authority adopted their 2015 UWMP in June 2016. The updated Water Authority 2015 UWMP identifies a diverse mix of local and imported water supplies to meet future demands. A copy of the updated Water Authority 2015 UWMP can be found on the internet at: http://www.sdcwa.org/sites/default/files/UWMP2015.pdf • As part of the October 2003 Colorado River Quantification Settlement Agreement (QSA), the Water Authority was assigned MWD’s rights to 77,700 acre feet per year of conserved water from the All-American Canal (AAC) and Coachella Canal (CC) lining projects. Deliveries of this conserved water from the CC reached the region in 2007 and deliveries from the AAC reached the region in 2010. Expected supplies from the canal lining projects are considered verifiable Water Authority supplies. • Deliveries of conserved agricultural water from the Imperial Irrigation District (IID) to San Diego County have increased annually since 2003, with 70,000 acre-feet per year of deliveries in Fiscal Year (FY) 2010. The quantities will increase annually to 200,000 acre-feet per year by 2021, and then remain fixed for the duration of the transfer agreement. • Development of seawater desalination in San Diego County assists the region in diversifying its water resources; reduces dependence on imported supplies; and provides a new drought‐proof, locally treated water supply. The Carlsbad Desalination Project is a fully operational seawater desalination plant and conveyance pipeline developed by Poseidon, a private investor–owned company that develops water and wastewater infrastructure. The Carlsbad Desalination Project, located near the Carlsbad Energy Center, began commercial operation on December 23, 2015, and can provide a highly reliable local supply of up to 56,000 AF/YR for the region. Of the total Carlsbad Desalination Plant production, Vallecitos Water District has a direct connection and a contract to receive 4,083 AFY. Carlsbad MWD has agreed to a take or pay of 2,500 AFY. Through implementation of the Water Authority and member agency planned supply projects, along with reliable imported water supplies from MWD, the region anticipates having adequate supplies to meet existing and future water demands. To ensure sufficient supplies to meet projected growth in the San Diego region, the Water Authority uses the SANDAG most recent regional growth forecast in calculating regional water demands. The SANDAG regional growth forecast is based on the plans and policies of the land-use jurisdictions with San Diego County. The existing and future demands of the member agencies are included in the Water Authority’s projections. Otay Water District Water Supply Assessment Report Otay Hills Project 23 6.2.1 Availability of Sufficient Supplies and Plans for Acquiring Additional Supplies The Water Authority currently obtains imported supplies from MWD, conserved water from the AAC and CC lining projects, an increasing amount of conserved agricultural water from IID, and desalinated seawater from the Carlsbad desalination plant. Of the twenty-seven member agencies that purchase water supplies from MWD, the Water Authority is MWD’s largest customer. Section 135 of MWD’s Act defines the preferential right to water for each of its member agencies. Currently, the Water Authority pays about 22 percent of MWD's total revenue, but has preferential rights to only 18.27 percent of MWD's water supply. Under preferential rights, MWD could allocate water without regard to historic water purchases or dependence on MWD. The Water Authority and its member agencies are taking measures to reduce dependence on MWD through development of additional supplies and a water supply portfolio that would not be jeopardized by a preferential rights allocation. MWD has stated, consistent with Section 4202 of its Administrative Code that it is prepared to provide the Water Authority’s service area with adequate supplies of water to meet expanding and increasing needs in the years ahead. When and as additional water resources are required to meet increasing needs, MWD stated it will be prepared to deliver such supplies. In Section ES-5 of their 2015 UWMP, MWD states that MWD has supply capacities that would be sufficient to meet expected demands from 2020 through 2040. MWD has plans for supply implementation and continued development of a diversified resource mix including programs in the Colorado River Aqueduct, State Water Project, Central Valley Transfers, local resource projects, and in-region storage that enables the region to meet its water supply needs. The Water Authority has made large investments in MWD’s facilities and will continue to include imported supplies from MWD in the future resource mix. As discussed in the Water Authority’s 2015 UWMP, the Water Authority and its member agencies are planning to diversify the San Diego regions supply portfolio and reduce purchases from MWD. As part of the Water Authority’s diversification efforts, the Water Authority is now taking delivery of conserved agricultural water from IID, water saved from the AAC and CC lining projects and desalinated seawater from the Carlsbad desalination plant. Table 4 summarizes the Water Authority’s supply sources with detailed information included in the sections to follow. Deliveries from MWD are also included in Table 3, which is further discussed in Section 6.1 above. The Water Authority’s member agencies provided the verifiable local supply targets for groundwater, recycled water, potable reuse and surface water, which are discussed in more detail in Section 5 of the Water Authority’s 2015 UWMP. Otay Water District Water Supply Assessment Report Otay Hills Project 24 Table 3 Projected Verifiable Water Supplies – Water Authority Service Area Normal Year (acre feet)1 Water Supply Sources 2020 2025 2030 2035 2040 Water Authority Supplies MWD Supplies 136,002 181,840 207,413 224,863 248,565 Water Authority/IID Transfer 190,000 200,000 200,000 200,000 200,000 AAC and CC Lining Projects 80,200 80,200 80,200 80,200 80,200 Regional Seawater Desalination 50,000 50,000 50,000 50,000 50,000 Member Agency Supplies Surface Water 51,580 51,480 51,380 51,280 51,180 Water Recycling 40,459 43,674 45,758 46,118 46,858 Seawater Desalination 6,000 6,000 6,000 6,000 6,000 Brackish GW Recovery 12,100 12,500 12,500 12,500 12,500 Groundwater 17,940 19,130 20,170 20,170 20,170 Potable Reuse 3,300 3,300 3,300 3,300 3,300 Total Projected Supplies 587,581 648,124 676,721 694,431 718,773 Source: Water Authority 2015 Urban Water Management Plan – Table 9-1. 1Normal water year demands based on 1960-2013 hydrology. Section 5.6.1 of the Water Authority’s 2015 UWMP also includes a discussion on the local supply target for seawater desalination. Seawater desalination supplies represent a significant local resource in the Water Authority’s service area. The Carlsbad Desalination Project (Project) is a fully-permitted seawater desalination plant and conveyance pipeline designed to provide a highly reliable local supply of up to 56,000 acre-feet (AF) per year for the region. In 2020, the Project would account for approximately 8% of the total projected regional supply and 30% of all locally generated water in San Diego County. The project became operational in late 2015 and it more than doubles the amount of local supplies developed in the region since 1991. The desalination plant itself was fully financed, built, by Poseidon Resources (Channelside) LC. The equity owner of the plant, Orion Water Partners LLC, entered into an agreement to sell its ownership to Aberdeen Standard Investments. Poseidon Water LLC is the Project Manager to perform the management and administrative functions at the plant for the new owner. The Water Authority purchases water from the plant under a water purchase agreement. The new pipeline connecting the desalination plant with the Water Authority’s Second Aqueduct is owned and operated by the Water Authority, but Poseidon had the responsibility for design and construction through a separate Design-Build Agreement. The Water Authority was responsible for aqueduct improvements, including the relining and rehabilitation of Pipeline 3 to accept desalinated water under higher operating pressures, modifications to the San Marcos Vent that allows the flow of water between Pipelines 3 and 4, and improvements at the Twin Oaks Valley Water Treatment Plant necessary to integrate desalinated water into the Water Authority’s system for optimal distribution to member agencies. Otay Water District Water Supply Assessment Report Otay Hills Project 25 The Water Authority’s existing and planned supplies from the IID transfer, canal lining, and desalination projects are considered “drought-proof” supplies and should be available at the yields shown in Table 4 in normal water year supply and demand assessment. Single dry year and multiple dry year scenarios are discussed in more detail in Section 9 of the Water Authority’s 2015 UWMP. As part of preparation of a written water supply assessment and/or verification report, an agency’s shortage contingency analysis should be considered in determining sufficiency of supply. Section 11 of the Water Authority’s 2015 UWMP contains a detailed shortage contingency analysis that addresses a regional catastrophic shortage situation and drought management. The analysis demonstrates that the Water Authority and its member agencies, through the Integrated Contingency Plan, Emergency Storage Project, and Water Shortage Contingency Plan are taking actions to prepare for and appropriately handle an interruption of water supplies. The Water Authority’s Board of Directors approved the Drought Management Plan (DMP) in 2006. The DMP outlined a series of orderly, progressive steps for the Water Authority and its member agencies to take during shortages to minimize impacts to the region’s economy and quality of life. It also included an allocation methodology to equitably allocate water supplies to the member agencies. The DMP was first activated in 2007 in response to MWD drawing water from storage to meet demands, and deactivated in 2011 when supply conditions improved. In 2008, the Water Authority’s Board approved another drought management document, the Model Drought Response Conservation Program Ordinance. The model ordinance focuses on core water use restrictions and is intended to assist the member agencies when updating or drafting local drought response ordinances. The intent of the model ordinance is to provide regional consistency in drought response levels and messaging to the public and media. Also in 2008, the Water Authority’s Board adopted Resolution 2008-11, that established procedures to administer the supply allocation methodology contained in the DMP. In 2012, the DMP’s supply allocation methodology was updated, using lessons from the previous shortage periods, and the DMP was renamed the Water Shortage and Drought Response Plan (WSDRP). In 2014, the WSDRP was activated due to critically dry weather in California and the impact on water supply conditions. It deactivated in 2016 when supply conditions improved. In each instance when the DMP and WSDRP were activated, a smooth transition into and out of water allocations for the member agencies was possible due to the advanced planning of the Water Authority and its member agencies. Those planning efforts also resulted in an approach that allowed for regional consistency in public drought messaging. On August 24, 2017, the Water Authority’s Board approved proposed revisions of the WSDRP and renamed it the Water Shortage Contingency Plan (WSCP) to align the WSCP with the framework outlined in the April 2017 Final Report, Making Water Conservation a California Way of Life, Implementing Executive Order B-37-16 in the areas of water use efficiency and shortage response planning. The WSCP continues a proactive and Otay Water District Water Supply Assessment Report Otay Hills Project 26 comprehensive approach to shortage response planning for the region. The plan will be reviewed and potentially updated at least every five years in coordination with the preparation of the Water Authority’s Urban Water Management Plan for 2020, which will include any final requirements approved through legislation implementing the state’s framework report. The approval of the WSCP does not require the member agencies to update their planning document or conservation ordinance at this time. 6.2.1.1 Water Authority-Imperial Irrigation District Water Conservation and Transfer Agreement The QSA was signed in October 2003, and resolves long-standing disputes regarding priority and use of Colorado River water and creates a baseline for implementing water transfers. With approval of the QSA, the Water Authority and IID were able to implement their Water Conservation and Transfer Agreement. This agreement not only provides reliability for the San Diego region, but also assists California in reducing its use of Colorado River water to its legal allocation. On April 29, 1998, the Water Authority signed a historic agreement with IID for the long-term transfer of conserved Colorado River water to San Diego County. The Water Authority-IID Water Conservation and Transfer Agreement (Transfer Agreement) is the largest agriculture-to- urban water transfer in United States history. Colorado River water will be conserved by Imperial Valley farmers who voluntarily participate in the program and then transferred to the Water Authority for use in San Diego County. Implementation Status On October 10, 2003, the Water Authority and IID executed an amendment to the original 1998 Transfer Agreement. This amendment modified certain aspects of the Transfer Agreement to be consistent with the terms and conditions of the QSA and related agreements. It also modified other aspects of the agreement to lessen the environmental impacts of the transfer of conserved water. The amendment was expressly contingent on the approval and implementation of the QSA, which was also executed on October 10, 2003. Section 6.2.1, “Colorado River,” contains details on the QSA. On November 5, 2003, IID filed a complaint in Imperial County Superior Court seeking validation of 13 contracts associated with the Transfer Agreement and the QSA. Imperial County and various private parties filed additional suits in Superior Court, alleging violations of the California Environmental Quality Act (CEQA), the California Water Code, and other laws related to the approval of the QSA, the water transfer, and related agreements. The lawsuits were coordinated for trial. The IID, Coachella Valley Water District, MWD, the Water Authority, and state are defending these suits and coordinating to seek validation of the contracts. In January 2010, a California Superior Court judge ruled that the QSA and 11 related agreements were invalid, because one of the agreements created an open-ended financial obligation for the state, Otay Water District Water Supply Assessment Report Otay Hills Project 27 in violation of California’s constitution. The QSA parties appealed this decision and on July 2013, a Sacramento Superior Court judge entered a final judgment validating the QSA and rejecting all of the remaining legal challenges. The judge affirmed all of the contested actions, including the adequacy of the environmental documents prepared by the IID. In May 2015, the state Court of Appeal issued a ruling that dismissed all remaining appeals. Expected Supply Deliveries into San Diego County from the transfer began in 2003 with an initial transfer of 10,000 acre-feet per year. The Water Authority received increasing amounts of transfer water each year, according to a water delivery schedule contained in the transfer agreement The quantities will increase annually to 200,000 acre feet per year by 2021 then remain fixed for the duration of the transfer agreement. The initial term of the Transfer Agreement is 45 years, with a provision that either agency may extend the agreement for an additional 30-year term. During dry years, when water availability is low, the conserved water will be transferred under IID’s Colorado River rights, which are among the most senior in the Lower Colorado River Basin. Without the protection of these rights, the Water Authority could suffer delivery cutbacks. In recognition for the value of such reliability, the 1998 contract required the Water Authority to pay a premium on transfer water under defined regional shortage circumstances. The shortage premium period duration is the period of consecutive days during which any of the following exist: 1) a Water Authority shortage; 2) a shortage condition for the Lower Colorado River as declared by the Secretary; and 3) a Critical Year. Under terms of the October 2003 amendment, the shortage premium will not be included in the cost formula until Agreement Year 16. Transportation The Water Authority entered into a water exchange agreement with MWD on October 10, 2003, to transport the Water Authority–IID transfer water from the Colorado River to San Diego County. Under the exchange agreement, MWD takes delivery of the transfer water through its Colorado River Aqueduct. In exchange, MWD delivers to the Water Authority a like quantity and quality of water. The Water Authority pays MWD’s applicable wheeling rate for each acre- feet of exchange water delivered. Under the terms of the water exchange agreement, MWD will make delivery of the transfer water for 35 years, unless the Water Authority and MWD elect to extend the agreement another 10 years for a total of 45 years. Cost/Financing The costs associated with the transfer are financed through the Water Authority’s rates and charges. In the agreement between the Water Authority and IID, the price for the transfer water started at $258 per acre-feet and increased by a set amount for the first seven years. In December 2009, the Water Authority and IID executed a fifth amendment to the water transfer agreement that sets the price per acre-feet for transfer water for calendar years 2010 through 2015, Otay Water District Water Supply Assessment Report Otay Hills Project 28 beginning at $405 per acre-feet in 2010 and increasing to $624 per acre-feet in 2015. For calendar years 2016 through 2034, the unit price will be adjusted using an agreed-upon index. The amendment also required the Water Authority to pay IID $6 million at the end of calendar year 2009 and another $50 million on or before October 1, 2010, provided that a transfer stoppage is not in effect as a result of a court order in the QSA coordinated cases. Beginning in 2035, either the Water Authority or IID can, if certain criteria are met, elect a market rate price through a formula described in the water transfer agreement. The October 2003 exchange agreement between MWD and the Water Authority set the initial cost to transport the conserved water at $253 per acre-feet. Thereafter, the price is set to be equal to the charge or charges set by MWD’s Board of Directors pursuant to applicable laws and regulation, and generally applicable to the conveyance of water by MWD on behalf of its member agencies. The Water Authority is providing $10 million to help offset potential socioeconomic impacts associated with temporary land fallowing. IID will credit the Water Authority for these funds during years 16 through 45. In 2007, the Water Authority prepaid IID an additional $10 million for future deliveries of water. IID will credit the Water Authority for this up-front payment during years 16 through 30. As part of implementation of the QSA and water transfer, the Water Authority also entered into an environmental cost sharing agreement. Under this agreement the Water Authority is contributing a total of $64 million to fund environmental mitigation projects and the Salton Sea Restoration Fund. Written Contracts or Other Proof The supply and costs associated with the transfer are based primarily on the following documents: Agreement for Transfer of Conserved Water by and between IID and the Water Authority (April 29, 1998). This Agreement provides for a market-based transaction in which the Water Authority would pay IID a unit price for agricultural water conserved by IID and transferred to the Water Authority. Revised Fourth Amendment to Agreement between IID and the Water Authority for Transfer of Conserved Water (October 10, 2003). Consistent with the executed Quantification Settlement Agreement (QSA) and related agreements, the amendments restructure the agreement and modify it to minimize the environmental impacts of the transfer of conserved water to the Water Authority. Amended and Restated Agreement between MWD and Water Authority for the Exchange of Water (October 10, 2003). This agreement was executed pursuant to the QSA and provides for delivery of the transfer water to the Water Authority. Otay Water District Water Supply Assessment Report Otay Hills Project 29 Environmental Cost Sharing, Funding, and Habitat Conservation Plan Development Agreement among IID, Coachella Valley Water District (CVWD), and Water Authority (October 10, 2003). This Agreement provides for the specified allocation of QSA-related environmental review, mitigation, and litigation costs for the term of the QSA, and for development of a Habitat Conservation Plan. Quantification Settlement Agreement Joint Powers Authority Creation and Funding Agreement (October 10, 2003). The purpose of this agreement is to create and fund the QSA Joint Powers Authority and to establish the limits of the funding obligation of CVWD, IID, and Water Authority for environmental mitigation and Salton Sea restoration pursuant to SB 654 (Machado). Fifth Amendment to Agreement Between Imperial Irrigation District and San Diego County Water Authority for Transfer of Conserved Water (December 21, 2009). This agreement implements a settlement between the Water Authority and IID regarding the base contract price of transferred water. Federal, State, and Local Permits/Approvals Federal Endangered Species Act Permit. The U.S. Fish and Wildlife Service (USFWS) issued a Biological Opinion on January 12, 2001, that provides incidental take authorization and certain measures required to offset species impacts on the Colorado River regarding such actions. State Water Resources Control Board (SWRCB) Petition. SWRCB adopted Water Rights Order 2002-0016 concerning IID and Water Authority’s amended joint petition for approval of a long- term transfer of conserved water from IID to the Water Authority and to change the point of diversion, place of use, and purpose of use under Permit 7643. Environmental Impact Report (EIR) for Conservation and Transfer Agreement. As lead agency, IID certified the Final EIR for the Conservation and Transfer Agreement on June 28, 2002. U. S. Fish and Wildlife Service Draft Biological Opinion and Incidental Take Statement on the Bureau of Reclamation's Voluntary Fish and Wildlife Conservation Measures and Associated Conservation Agreements with the California Water Agencies (12/18/02). The U. S. Fish and Wildlife Service issued the biological opinion/incidental take statement for water transfer activities involving the Bureau of Reclamation and associated with IID/other California water agencies' actions on listed species in the Imperial Valley and Salton Sea (per the June 28, 2002 EIR). Addendum to EIR for Conservation and Transfer Agreement. IID as lead agency and Water Authority as responsible agency approved addendum to EIR in October 2003. Environmental Impact Statement (EIS) for Conservation and Transfer Agreement. Bureau of Reclamation issued a Record of Decision on the EIS in October 2003. Otay Water District Water Supply Assessment Report Otay Hills Project 30 CA Department of Fish and Game California Endangered Species Act Incidental Take Permit #2081-2003-024-006). The California Department of Fish and Game issued this permit (10/22/04) for potential take effects on state-listed/fully protected species associated with IID/other California water agencies' actions on listed species in the Imperial Valley and Salton Sea (per the June 28, 2002 EIR). California Endangered Species Act (CESA) Permit. A CESA permit was issued by California Department of Fish and Game (CDFG) on April 4, 2005, providing incidental take authorization for potential species impacts on the Colorado River. 6.2.1.2 All-American Canal and Coachella Canal Lining Projects As part of the QSA and related contracts, the Water Authority was assigned MWD’s rights to 77,700 acre-feet per year of conserved water from projects that will line the All-American Canal (AAC) and Coachella Canal (CC). The projects will reduce the loss of water that currently occurs through seepage, and the conserved water will be delivered to the Water Authority. This conserved water will provide the San Diego region with an additional 8.5 million acre-feet over the 110-year life of the agreement. Implementation Status The CC lining project began in November 2004 and was completed in 2006. Deliveries of conserved water to the Water Authority began in 2007. The project constructed a 37-mile parallel canal adjacent to the CC. The AAC lining project was begun in 2005 and was completed in 2010. The lining project constructed a concrete-lined canal parallel to 24 miles of the existing AAC from Pilot Knob to Drop 3. In July 2005, a lawsuit (CDEM v United States, Case No. CV-S-05-0870-KJD-PAL) was filed in the U. S. District Court for the District of Nevada on behalf of U.S. and Mexican groups challenging the lining of the AAC. The lawsuit, which names the Secretary of the Interior as a defendant, claims that seepage water from the canal belongs to water users in Mexico. California water agencies note that the seepage water is actually part of California's Colorado River allocation and not part of Mexico's allocation. The plaintiffs also allege a failure by the United States to comply with environmental laws. Federal officials have stated that they intend to vigorously defend the case. Expected Supply The AAC lining project makes 67,700 acre-feet of Colorado River water per year available for allocation to the Water Authority and San Luis Rey Indian water rights settlement parties. The CC lining project makes 26,000 acre-feet of Colorado River water each year available for allocation. The 2003 Allocation Agreement provides for 16,000 acre-feet per year of conserved canal lining water to be allocated to the San Luis Rey Indian Water Rights Settlement Parties. The remaining amount, 77,700 acre-feet per year, is to be available to the Otay Water District Water Supply Assessment Report Otay Hills Project 31 Water Authority, with up to an additional 4,850 acre-feet per year available to the Water Authority depending on environmental requirements from the CC lining project. For planning purposes, the Water Authority assumes that 2,500 acre-feet of the 4,850 acre-feet will be available each year for delivery, for a total of 80,200 acre-feet per year of that supply. According to the Allocation Agreement, IID has call rights to a portion (5,000 acre-feet per year) of the conserved water upon termination of the QSA for the remainder of the 110 years of the Allocation Agreement and upon satisfying certain conditions. The term of the QSA is for up to 75 years. Transportation The October 2003 Exchange Agreement between the Water Authority and MWD provides for the delivery of the conserved water from the canal lining projects. The Water Authority pays MWD’s applicable wheeling rate for each acre-foot of exchange water delivered. In the Agreement, MWD will deliver the canal lining water for the term of the Allocation Agreement (110 years). Cost/Financing Under California Water Code Section 12560 et seq., the Water Authority received $200 million in state funds for construction of the canal lining projects. In addition, $20 million was made available from Proposition 50 and $36 million from Proposition 84. The Water Authority was responsible for additional expenses above the funds provided by the state. The rate to be paid to transport the canal lining water will be equal to the charge or charges set by MWD’s Board of Directors pursuant to applicable law and regulation and generally applicable to the conveyance of water by MWD on behalf of its member agencies. In accordance with the Allocation Agreement, the Water Authority is responsible for a portion of the net additional Operation, Maintenance, and Repair (OM&R) costs for the lined canals. Any costs associated with the lining projects as proposed are to be financed through the Water Authority’s rates and charges. Written Contracts or Other Proof The expected supply and costs associated with the lining projects are based primarily on the following documents: U.S. Public Law 100-675 (1988). Authorized the Department of the Interior to reduce seepage from the existing earthen AAC and CC. The law provides that conserved water will be made available to specified California contracting water agencies according to established priorities. California Department of Water Resources - MWD Funding Agreement (2001). Reimburse MWD for project work necessary to construct the lining of the CC in an amount not to exceed $74 million. Modified by First Amendment (2004) to replace MWD with the Authority. Otay Water District Water Supply Assessment Report Otay Hills Project 32 Modified by Second Amendment (2004) to increase funding amount to $83.65 million, with addition of funds from Proposition 50. California Department of Water Resources - IID Funding Agreement (2001). Reimburse IID for project work necessary to construct a lined AAC in an amount not to exceed $126 million. MWD - CVWD Assignment and Delegation of Design Obligations Agreement (2002). Assigns design of the CC lining project to CVWD. MWD - CVWD Financial Arrangements Agreement for Design Obligations (2002). Obligates MWD to advance funds to CVWD to cover costs for CC lining project design and CVWD to invoice MWD to permit the Department of Water Resources to be billed for work completed. Allocation Agreement among the United States of America, The MWD Water District of Southern California, Coachella Valley Water District, Imperial Irrigation District, San Diego County Water Authority, the La Jolla, Pala, Pauma, Rincon, and San Pasqual Bands of Mission Indians, the San Luis Rey River Indian Water Authority, the City of Escondido, and Vista Irrigation District (October 10, 2003). This agreement includes assignment of MWD’s rights and interest in delivery of 77,700 acre-feet of Colorado River water previously intended to be delivered to MWD to the Water Authority. Allocates water from the AAC and CC lining projects for at least 110 years to the Water Authority, the San Luis Rey Indian Water Rights Settlement Parties, and IID, if it exercises its call rights. Amended and Restated Agreement between MWD and Water Authority for the Exchange of Water (October 10, 2003). This agreement was executed pursuant to the QSA and provides for delivery of the conserved canal lining water to the Water Authority. Agreement between MWD and Water Authority regarding Assignment of Agreements related to the AAC and CC Lining Projects. This agreement was executed in April 2004 and assigns MWD's rights to the Water Authority for agreements that had been executed to facilitate funding and construction of the AAC and CC lining projects: Assignment and Delegation of Construction Obligations for the Coachella Canal Lining Project under the Department of Water Resources Funding Agreement No. 4600001474 from the San Diego County Water Authority to the Coachella Valley Water District, dated September 8, 2004. Agreement Regarding the Financial Arrangements between the San Diego County Water Authority and Coachella Valley Water District for the Construction Obligations for the Coachella Canal Lining Project, dated September 8, 2004. Agreement No. 04-XX-30-W0429 Among the United States Bureau of Reclamation, the Coachella Valley Water District, and the San Diego County Water Authority for the Construction of the Coachella Canal Lining Project Pursuant to Title II of Public Law 100-675, dated October 19, 2004. Otay Water District Water Supply Assessment Report Otay Hills Project 33 California Water Code Section 12560 et seq. This Water Code Section provides for $200 million to be appropriated to the Department of Water Resources to help fund the canal lining projects in furtherance of implementing California’s Colorado River Water Use Plan. California Water Code Section 79567. This Water Code Section identifies $20 million as available for appropriation by the California Legislature from the Water Security, Clean Drinking Water, Coastal, and Beach Protection Fund of 2002 (Proposition 50) to DWR for grants for canal lining and related projects necessary to reduce Colorado River water use. According to the Allocation Agreement, it is the intention of the agencies that those funds will be available for use by the Water Authority, IID, or CVWD for the AAC and CC lining projects. California Public Resources Code Section 75050(b) (1). This section identifies up to $36 million as available for water conservation projects that implement the Allocation Agreement as defined in the Quantification Settlement Agreement. Federal, State, and Local Permits/Approvals AAC Lining Project Final EIS/EIR (March 1994). A final EIR/EIS analyzing the potential impacts of lining the AAC was completed by the Bureau of Reclamation (Reclamation) in March 1994. A Record of Decision was signed by Reclamation in July 1994, implementing the preferred alternative for lining the AAC. A re-examination and analysis of these environmental compliance documents by Reclamation in November 1999 determined that these documents continued to meet the requirements of the NEPA and the CEQA and would be valid in the future. CC Lining Project Final EIS/EIR (April 2001). The final EIR/EIS for the CC lining project was completed in 2001. Reclamation signed the Record of Decision in April 2002. An amended Record of Decision has also been signed to take into account revisions to the project description. Mitigation, Monitoring, and Reporting Program for Coachella Canal Lining Project, SCH #1990020408; prepared by Coachella Valley Water District, May 16, 2001. Environmental Commitment Plan for the Coachella Canal Lining Project, approved by the US Bureau of Reclamation (Boulder City, NV) on March 4, 2003. Environmental Commitment Plan and Addendum to the All-American Canal Lining Project EIS/EIR California State Clearinghouse Number SCH 90010472 (June 2004, prepared by IID). Addendum to Final EIS/EIR and Amendment to Environmental Commitment Plan for the All-American Canal Lining Project (approved June 27, 2006, by IID Board of Directors). Otay Water District Water Supply Assessment Report Otay Hills Project 34 6.2.1.3 Carlsbad Seawater Desalination Project Development of seawater desalination in San Diego County has assisted the region in diversifying its water resources, reduce dependence on imported supplies, and provide a new drought-proof, locally treated water supply. The Carlsbad Desalination Project is a fully- permitted seawater desalination plant and conveyance pipeline developed by Poseidon, a private investor–owned company that develops water and wastewater infrastructure. The project, located near the Carlsbad Energy Center, has been in development since 1998 and was incorporated into the Water Authority’s 2003 Water Facilities Master Plan and the 2015 UWMP. The Carlsbad Desalination Project has obtained all required permits and environmental clearances and starting in late 2015 provides a highly reliable local supply of 48,000 to 56,000 acre-feet per year for the region. Implementation Status The Project obtained all required permits and environmental clearances, including the following: • National Pollutant Discharge Elimination System (NPDES) Discharge Permit (Regional Water Quality Control Board) • Conditional Drinking Water Permit (California Department of Health Services) • State Lands Commission Lease (State Lands Commission) • Coastal Development Permit (California Coastal Commission) IDE Technologies, a worldwide leader in the design, construction, and operation of desalination plants, was the desalination process contractor for the Project. On July 22, 2010, the Board approved a Term Sheet between the Water Authority and Poseidon Resources that outlined the key terms and conditions that would be detailed and incorporated in a comprehensive Water Purchase Agreement (WPA). Beginning in October 2011 and under the direction of the Board’s Carlsbad Desalination Project Advisory Group, staff began developing and negotiating with Poseidon a WPA consistent with the July 22, 2010 Board approved Term Sheet. The July 2010 Term Sheet also identified specific conditions precedent to Board consideration of the WPA. On November 29, 2012, the Water Authority Board adopted a resolution approving the Design-Build Agreement between the Water Authority and Poseidon. The Design-Build Agreement established the commercial and technical terms for implementation of the desalination product pipeline improvements. These improvements consisted of an approximate 10-mile long, 54-inch diameter conveyance pipeline connecting the Desalination Plant to the Water Authority’s Second Aqueduct. The pipeline was generally be constructed within improved streets in commercial and industrial areas in the cities of Carlsbad, Vista, and San Marcos. The Water Authority owns the Project Water Pipeline Improvements and has assumed operational control of all pipeline improvements. This system was placed into service in late 2015. Otay Water District Water Supply Assessment Report Otay Hills Project 35 Expected Supply The Project provides a highly reliable local supply of 48,000 to 56,000 acre-feet per year of supply for the region, available in both normal and dry hydrologic conditions. In 2020, the Project would account for approximately 8% of the total projected regional supply and 30% of all locally generated water in San Diego County. The project more than doubles the amount of local supplies developed in the region since 1991. Transportation On November 29, 2012, the Water Authority Board adopted a resolution approving the Design-Build Agreement between the Water Authority and Poseidon. The Design-Build Agreement establishes the commercial and technical terms for implementation of the desalination product pipeline improvements. These improvements consisted of an approximate 10-mile long, 54-inch diameter conveyance pipeline connecting the Desalination Plant to the Water Authority’s Second Aqueduct. The pipeline was generally constructed within improved streets in commercial and industrial areas in the cities of Carlsbad, Vista, and San Marcos. The Water Authority owns the Project Water Pipeline Improvements and has assumed operational control of all pipeline improvements. The Water Authority was responsible for aqueduct improvements, including the relining and rehabilitation of Pipeline 3 to accept desalinated water under higher operating pressures, modifications to the San Marcos Vent that allows the flow of water between Pipelines 3 and 4, and improvements at the Twin Oaks Valley Water Treatment Plant necessary to integrate desalinated water into the Water Authority’s system for optimal distribution to member agencies. Cost/Financing The plant and the offsite pipeline is being financed through tax exempt government bonds issued for the Water Authority by the California Pollution Control Financing Authority (CPCFA). On November 29, 2012, the Water Authority Board adopted a resolution approving agreements to accomplish tax exempt project financing through the CPCFA. Based on current electricity cost estimates, the Water Purchase Agreement sets the price of the water from the Carlsbad Desalination Project at $2,131 to $2,367 per acre foot in 2016. The Water Authority’s water purchase costs would be financed through Water Authority rates and charges. Poseidon is financing the capital cost of the Project with a combination of private equity and tax-exempt Private Activity Bonds. Written Contracts or Other Proof The supply and costs associated with the Carlsbad Desalination Project are based primarily on the following documents: Otay Water District Water Supply Assessment Report Otay Hills Project 36 Development Agreement between City of Carlsbad and Poseidon (October 2009). A Development Agreement between Carlsbad and Poseidon was executed on October 5, 2009 Agreement of Term Sheet between the Water Authority and Poseidon Resources (July 2010). The Water Authority approved the Term Sheet at its July 2010 Board Meeting. The Term Sheet outlines the terms and conditions of a future Water Purchase Agreement with Poseidon and allocates the resources to prepare the draft Water Purchase Agreement. Federal, State, and Local Permits/Approvals Carlsbad Desalination Project Final EIR The City of Carlsbad, acting as lead agency for Carlsbad Seawater Desalination Plant and appurtenant facilities proposed by Poseidon (the “Project”) prepared an Environmental Impact Report for the Project in compliance with the California Environmental Quality Act (“CEQA”), which the City of Carlsbad certified on June 13, 2006. http://www.sdcwa.org/rwfmp-peir Regional Water Facilities Master Plan EIR On March 27, 2014, the Water Authority Board of Directors adopted Resolution No. 2014 certifying the Final Supplemental Program Environmental Impact Report (State Clearinghouse No. 2003021052) for the Water Authority’s 2013 Regional Water Facilities Optimization and Master Plan Update and Climate Action Plan (the “Master Plan EIR”), which evaluated, among other things, potential growth inducing impacts associated with new water supplies to the region including, but not limited to, up to 200 million gallons per day (“MGD”) of new supplies from seawater desalination. This certification included a 50 MGD plant located in the City of Carlsbad. The environmental documents and permits are found at the following links: https://www.sdcwa.org/master-plan-documents Sub regional Natural Community Conservation Plan/Habitat Conservation Plan (NCCP/HCP) On December 8, 2010, the Board adopted Resolution No. 2010-18 certifying a Final environmental Impact Report/Environmental Impact Statement for the San Diego County Water Authority Subregional Natural Community Conservation Plan/Habitat Conservation Plan (State Clearinghouse No. 2003121012) (the “Habitat Conservation Plan EIR/EIS”), which Plan was implemented on December 28, 201. The environmental documents and permits are found at the following links: http://www.sdcwa.org/nccp-hcp Twin Oaks Valley Water Treatment Plant EIR On September 8, 2005, the Board adopted Resolution No. 2005-31 certifying a Final Environmental Impact Report for the Twin Oaks Valley Water Treatment Plant Project (State Clearinghouse No. 20040071034) (the “Twin Oaks EIR”), which project was constructed as a 100 MGD submerged membrane water treatment facility, including treated water holding tanks and distribution pipelines and other facilities, consistent with the conditions and mitigation measures included in the Twin Oaks EIR. Otay Water District Water Supply Assessment Report Otay Hills Project 37 http://www.sdcwa.org/twin-oaks-valley-treatment-plant-final-eir Drinking Water Permit (October 2006). The California Department of Health Services approved the Conditional Drinking Water Permit on October 19, 2006. 6.2.2 Water Authority Capital Improvement Program and Financial Information The Water Authority’s Capital Improvement Program (CIP) can trace its beginnings to a report approved by the Board in 1989 entitled, The Water Distribution Plan, and a Capital Improvement Program through the Year 2010. The Water Distribution Plan included ten projects designed to increase the capacity of the aqueduct system, increase the yield from existing water treatment plants, obtain additional supplies from MWD, and increase the reliability and flexibility of the aqueduct system. Since that time the Water Authority has made numerous additions to the list of projects included in its CIP as the region’s infrastructure needs and water supply outlook have changed. The current list of projects included in the CIP is based on the results of planning studies, including the 2015 UWMP and the 2013 Regional Water Facilities Optimization Master Plan Update. These CIP projects, which are most recently described in the Water Authority’s Adopted Multi-Year Budget Fiscal Years 2020 and 2021, include projects valued at $162 million. These CIP projects are designed to meet projected water supply and delivery needs of the member agencies. The projects include a mix of new facilities that will add capacity to existing conveyance, storage, and treatment facilities, as well as repair and replace aging infrastructure: • Asset Management – The primary components of the asset management projects include relining and replacing existing pipelines and updating and replacing metering facilities. • New Facilities – These projects will expand the capacity of the aqueduct system and evaluate new supply opportunities. • Emergency Storage Project – Projects remaining to be completed under the ongoing ESP include the San Vicente Dam Raise, the Lake Hodges projects, and a new pump station to extend ESP supplies to the northern reaches of the Water Authority service area. • Other Projects – This category includes out-of-region groundwater storage, increased local water treatment plant capacity, and projects that mitigate environmental impacts of the CIP. The Water Authority Board of Directors is provided a semi-annual and annual report on the status of development of the CIP projects. As described in the Water Authority’s biennial budget, a combination of long and short term debt and cash (pay-as-you-go) will provide funding for capital improvements. Additional information is included in the Water Otay Water District Water Supply Assessment Report Otay Hills Project 38 Authority’s biennial budget, which also contains selected financial information and summarizes the Water Authority’s investment policy. 6.3 Otay Water District The Otay Water District WFMP Update and the 2015 UWMP contain comparisons of projected supply and demands through the year 2040. Projected potable water resources to meet planned demands as documented were planned to be supplied entirely with imported water received from the Water Authority. Recycled water resources to meet projected demands are planned to be supplied from local wastewater treatment plants. The Otay WD currently has no local supply of raw water, potable water, or groundwater resources. The development and/or acquisition of potential groundwater, recycled water market expansion, and seawater desalination supplies by the Otay WD have evolved and are planned to occur in response to the regional water supply issues. These water supply projects are in addition to those identified as sustainable supplies in the current Water Authority and MWD UWMP, IRP, Master Plans, and other planning documents. These new additional water supply projects are not currently developed and are in various stages of the planning process. These local and regional water supply projects will allow for less reliance upon imported water and are considered a new water supply resource for the Otay WD. The supply forecasts contained within this WSA Report do consider development and/or acquisition of potential groundwater, recycled water market expansion, and seawater desalination supplies by the Otay WD. 6.3.1 Availability of Sufficient Supplies and Plans for Acquiring Additional Supplies The availability of sufficient potable water supplies and plans for acquiring additional potable water supplies to serve existing and future demands of the Otay WD is founded upon the preceding discussions regarding MWD’s and the Water Authority’s water supply resources and water supplies to be acquired by the Otay WD. Historic imported water deliveries from the Water Authority to Otay WD and recycled water deliveries from the Otay WD Ralph W. Chapman Water Reclamation Facility (RWCWRF) are shown in Table 4. Since the year 2000 through mid-May 2007, recycled water demand has exceeded the recycled water supply capability typically in the summer months. The RWCWRF is limited to a maximum production of about 1,300 acre-feet per year. The recycled water supply shortfall had been met by supplementing with potable water into the recycled water storage system as needed by adding potable water supplied by the Water Authority. On May 18, 2007 an additional source of recycled water supply from the City of San Diego’s South Bay Water Reclamation Plant (SBWRP) became available. The supply of recycled water from the SBWRP is a result of completing construction and the operation of the transmission, storage, and pump station Otay Water District Water Supply Assessment Report Otay Hills Project 39 systems necessary to link the SBWRP recycled water supply source to the existing Otay WD recycled water system. Table 4 Otay Water District Historic Imported and Local Water Supplies Calendar Year Imported Water (acre-feet) Recycled Water (acre-feet) Total (acre-feet) 1980 12,558 0 12,558 1985 14,529 0 14,529 1990 23,200 0 23,200 1995 20,922 614 21,536 2000 29,901 948 30,849 2005 37,678 1,227 38,905 2010 29,270 4,090 33,270 2015 26,494 3,777 30,271 2016 27,289 3,888 31,177 2017 28,045 4,007 32,052 2018 29,286 3,967 33,253 2019 26,803 3,340 30,143 Source: Otay Water District operational records. 6.3.1.1 Imported and Regional Supplies The availability of sufficient imported and regional potable water supplies to serve existing and planned uses within Otay WD is demonstrated in the above discussion on MWD and the Water Authority’s water supply reliability. The County Water Authority Act, Section 5 subdivision 11, states that the Water Authority “as far as practicable, shall provide each of its member agencies with adequate supplies of water to meet their expanding and increasing needs.” The Water Authority provides between 75 to 95 percent of the total supplies used by its 24 member agencies, depending on local weather and supply conditions. Potable Water System Facilities The Otay WD continues to pursue diversification of its water supply resources to increase reliability and flexibility. The Otay WD also continues to plan, design, and construct potable water system facilities to obtain these supplies and to distribute potable water to meet customer demands. The Otay WD has successfully negotiated two water supply diversification agreements that enhance reliability and flexibility, which are briefly described as follows. Otay Water District Water Supply Assessment Report Otay Hills Project 40 • The Otay WD entered into an agreement with the City of San Diego, known as the Otay Water Treatment Plant (WTP) Agreement. The Otay WTP Agreement provides for raw water purchase from the Water Authority and treatment by the City of San Diego at their Otay WTP for delivery to Otay WD. The supply system link to implement the Otay WTP Agreement to access the regions raw water supply system and the local water treatment plant became fully operational in August 2005. This supply link consists of the typical storage, transmission, pumping, flow measurement, and appurtenances to receive and transport the treated water to the Otay WD system. The City of San Diego obligation to supply 10 mgd of treated water under the Otay WTP Agreement is contingent upon there being available 10 mgd of surplus treatment capacity in the Otay WTP until such time as Otay WD pays the City of San Diego to expand the Otay WTP to meet the Otay WD future needs. In the event that the City of San Diego’s surplus is projected to be less than 10 mgd the City of San Diego will consider and not unreasonably refuse the expansion of the Otay WTP to meet the Otay WD future needs. The Otay WTP existing rated capacity is 40 mgd with an actual effective capacity of approximately 34 mgd. The City of San Diego’s typical demand for treated water from the Otay WTP is approximately 20 mgd. It is at the City of San Diego’s discretion to utilize either imported raw water delivered by the Water Authority Pipeline No. 3 or local water stored in Lower Otay Reservoir for treatment to supply the Otay WD demand. The Otay WD entered into an agreement with the Water Authority, known as the East County Regional Treated Water Improvement Program (ECRTWIP Agreement). The ECRTWIP Agreement provides for transmission of raw water to the Helix WD R. M. Levy WTP for treatment and delivery to Otay WD. The supply system link to implement the ECRTWIP Agreement is complete allowing access to the regions raw water supply system and the local water treatment plant. This supply link consists of the typical transmission, pumping, storage, flow control, and appurtenances to receive and transport the potable water from the R. M. Levy WTP to Otay WD. Cost and Financing The capital improvement costs associated with water supply and delivery are financed through the Otay WD water meter capacity fee and user rate structures. The Otay WD potable water sales revenue are used to pay for the wholesale cost of the treated water supply and the operating and maintenance expenses of the potable water system facilities. Written Agreements, Contracts, or Other Proof The supply and cost associated with deliveries of treated water from the Otay WTP and the R.M. Levy WTP is based on the following documents. Agreement for the Purchase of Treated Water from the Otay Water Treatment Plant between the City of San Diego and the Otay Water District. The Otay WD entered into an agreement dated January 11, 1999 with the City of San Diego that provides for 10 mgd of surplus treated water to the Otay WD from the existing Otay WTP capacity. The agreement allows for the purchase of Otay Water District Water Supply Assessment Report Otay Hills Project 41 treated water on an as available basis from the Otay WTP. The Otay WD pays the Water Authority at the prevailing raw water rate for raw water and pays the City of San Diego at a rate equal to the actual cost of treatment to potable water standards. Agreement between the San Diego County Water Authority and Otay Water District Regarding Implementation of the East County Regional Treated Water Improvement Program. The ECRTWIP Agreement requires the purchase of potable water from the Helix WD R.M. Levy WTP at the prevailing Water Authority treated water rate. The ECRTWIP Agreement is dated April 27, 2006. Agreement between the San Diego County Water Authority and Otay Water District for Design, Construction, Operation, and Maintenance of the Otay 14 Flow Control Facility Modification. The Otay WD entered into the Otay 14 Flow Control Facility Modification Agreement dated January 24, 2007 with the Water Authority to increase the physical capacity of the Otay 14 Flow Control Facility. The Water Authority and Otay WD shared the capital cost to expand its capacity from 8 mgd to 16 mgd. Federal, State, and Local Permits/Approvals The Otay WD acquired all the permits for the construction of the pipeline and pump station associated with the Otay WTP supply source and for the 640-1 and 640-2 water storage reservoirs project associated with the ECRTWIP Agreement through the typical planning, environmental approval, design, and construction processes. The transmission main project constructed about 26,000 feet of a 36-inch diameter steel pipeline from the Otay 14 Flow Control Facility to the 640-1 and 640-2 Reservoirs project. The Otay 14 Flow Control Facility modification increased the capacity of the existing systems from 8 mgd to 16 mgd. CEQA documentation is complete for both projects. Construction of both of these projects was completed October 2010. The City of San Diego and the Helix Water District are required to meet all applicable federal, state, and local health and water quality requirements for the potable water produced at the Otay WTP and the R.M. Levy WTP respectively. 6.3.1.2 Recycled Water Supplies Wastewater collection, treatment, and disposal services provided by the Otay WD is limited to a relatively small area within what is known as the Jamacha Basin, located within the Middle Sweetwater River Basin watershed upstream of the Sweetwater Reservoir and downstream of Loveland Reservoir. Water recycling is defined as the treatment and disinfection of municipal wastewater to provide a water supply suitable for non-potable reuse. The Otay WD owns and operates the Ralph W. Chapman Water Reclamation Facility, which produces recycled water treated to a tertiary level for landscape irrigation purposes. The recycled water market area of the Otay WD is located primarily within the eastern area of the City of Chula Otay Water District Water Supply Assessment Report Otay Hills Project 42 Vista. The Otay WD distributes recycled water to a substantial market area that includes but is not limited to the Elite Athlete Training Center, the Eastlake Golf Course, Otay Ranch, and other development projects. The Otay WD projects that annual average demands for recycled water will increase to 6,500 acre-feet per year by 2050. About 1,300 acre-feet per year of supply is generated by the RWCWRF, with the remainder planned to be supplied to Otay WD by the City of San Diego’s SBWRP. Recycled Water System Facilities The Otay WD has constructed recycled water storage, pumping, transmission, and distribution facilities and will continue to construct these facilities to meet projected recycled water market demands. The Supply Link project consisting of a transmission main, storage reservoir, and a pump station to receive and transport the recycled water from the City of San Diego’s SBWRP was completed in 2007 and recycled water deliveries began on May 18, 2007. Cost and Financing The capital improvement costs associated with the recycled water supply and distribution systems are financed through the Otay WD water meter capacity fee and user rate structures. The Otay WD recycled water sales revenue, along with MWD and the Water Authority’s recycled water sales incentive programs are used to help offset the costs for the wholesale purchase and production of the recycled water supply, the operating and maintenance expenses, and the capital costs of the recycled water system facilities. Written Agreements, Contracts, or Other Proof The supply and cost associated with deliveries of recycled water from the SBWRP is based on the following document. Agreement between the Otay Water District and the City of San Diego for Purchase of Reclaimed Water from the South Bay Water Reclamation Plant. The agreement provides for the purchase of at least 6,721 acre-feet per year of recycled water from the SBWRP at an initial price of $350 per acre-foot. The Otay Water District Board of Directors approved the final agreement on June 4, 2003 and the San Diego City Council approved the final agreement on October 20, 2003. Effective January 1, 2016, the City of San Diego raised the cost of recycled water 116% to $754 per acre-foot. Federal, State, and Local Permits/Approvals The Otay WD has in place an agreement with MWD for their recycled water sales incentive program for supplies from the RWCWRF and the SBWRP. Also, the Otay WD has in place an agreement with the Water Authority for their recycled water sales incentive program for supplies from the RWCWRF and the SBWRP. The Water Authority sales incentive Otay Water District Water Supply Assessment Report Otay Hills Project 43 agreement was approved by Water Authority on July 26, 2007 and by Otay WD on August 1, 2007. All permits for the construction of the recycled water facilities to receive, store, and pump the SBWRP supply have been acquired through the typical planning, environmental approval, design, and construction processes. The California Regional Water Quality Control Board San Diego Region (RWQCB) “Master Reclamation Permit for Otay Water District Ralph W. Chapman Reclamation Facility” was adopted on May 9, 2007 (Order No. R9-2007-0038). This order establishes master reclamation requirements for the production, distribution, and use of recycled water in the Otay WD service area. The order includes the use of tertiary treated water produced and received from the City of San Diego‘s SBWRP. Recycled water received from and produced by the SBWRP is regulated by Regional Board Order No. 2000-203 and addenda. The City of San Diego is required to meet all applicable federal, state, and local health and water quality requirements for the recycled water produced at the SBWRP and delivered to Otay WD in conformance with Order No. 2000-203. 6.3.1.3 Potential Groundwater Supplies The Otay Water District WFMP Update, 2015 UWMP, and the 2015 Integrated Water Resources Plan Update all contain a description of the development of potential groundwater supplies. Over the past several years, Otay WD has studied numerous potential groundwater supply options that have shown, through groundwater monitoring well activities, poor quality water and/or insufficient yield from the basins at a cost-effective level. The Otay WD has developed capital improvement program projects to continue the quest to develop potential groundwater resources. Local Otay WD groundwater supply development is currently considered as a viable water supply resource to meet projected demands. The development and/or acquisition of potential groundwater supply projects by the Otay WD have been on hold in response to the regional water supply issues related to water source supply conditions. Local ground water supply projects will allow for less reliance upon imported water, achieve a level of independence of the regional wholesale water agencies, and diversify the Otay WD water supply portfolio consistent with the Otay Water District 2015 IRP Update. In recognition of the need to develop sufficient alternative water supplies, the Otay WD has taken the appropriate next steps towards development of production groundwater well projects. The Otay WD is actively pursuing the Middle Sweetwater River Basin Groundwater Well project. Middle Sweetwater River Basin Groundwater Well The Middle Sweetwater River Basin Groundwater Well is an additional water supply project that was thoroughly studied and documented in the 1990s. The Middle Sweetwater River Otay Water District Water Supply Assessment Report Otay Hills Project 44 Basin is located within the Sweetwater River watershed and that reach of the river extends from Sweetwater Reservoir to the upstream Loveland Reservoir. The next step in development of the Middle Sweetwater River Basin Groundwater Well is the implementation of a pilot well project. The ultimate objective of the Otay WD is to develop a groundwater well production system within the Middle Sweetwater River Basin capable of producing a sustainable yield of potable water as a local supply. The purpose of the Middle Sweetwater River Basin Groundwater Well Pilot project is to identify the feasibility of developing a groundwater resource production system and then determine and assess any limitations or constraints that may arise. The Middle Sweetwater River Basin Groundwater Well Pilot Project will accomplish six primary goals: • Update project setting • Update applicable project alternatives analysis • Prepare groundwater well pilot project implementation plan • Construct and test pilot monitoring and extraction wells • Provide recommendations regarding costs and feasibility to develop a groundwater well production system within the Middle Sweetwater River Basin capable of producing a sustainable yield of potable water • Prepare groundwater well production project implementation plan and scope of work The groundwater conjunctive use concept is described as the extraction of the quantity of water from the groundwater basin that was placed there by customers of the Otay Water District, Helix Water District, and Padre Dam Municipal Water District by means of their use of imported treated water that contributed to the overall volume of groundwater within the basin. An estimated quantity was developed to be approximately 12.5 percent of the total consumption of the Otay WD customers within that basin, as measured by water meters. In the 1994-1995 period, the quantity of water that was returned to the groundwater basin by Otay WD customers was estimated to be 810 acre-feet per year. Currently, that 12.5 percent quantity could be on the order of 1,000 acre-feet per year. A future scope of work will need to address this concept while considering further development of the groundwater basin as an additional supply resource. If it is deemed that a Middle Sweetwater River Basin Groundwater Well Production Project is viable then the consultant will develop and provide a groundwater well production project implementation plan, cost estimate, and related scope of work. Further development of the groundwater basin to enhance the total groundwater production could be accomplished by the Otay WD by means of additional extraction of water from the basin that is placed there by means of either injection and/or spreading basins using imported untreated water as the resource supply. The existing La Mesa Sweetwater Extension Pipeline, owned by the Water Authority, once converted to an untreated water delivery system, could be the conveyance system to transport untreated water for groundwater recharge in support of this conjunctive use concept. These two distinct water resource supply conjunctive use concepts will be addressed so they may coexist and to allow for their development as separate phases. Otay Water District Water Supply Assessment Report Otay Hills Project 45 The scope of work to complete Middle Sweetwater River Basin Groundwater Well Pilot Project consists of many major tasks and is to address the groundwater supply concepts outlined above. It is anticipated that the cost for the entire scope of work, will be on the order of $2,000,000, which includes a contingency and may take up to one and a half years to complete. The primary desired outcome of the Middle Sweetwater River Basin Groundwater Well Pilot Project is for the engineering consultant to determine and make recommendations if it is financially prudent and physically feasible to develop a Phase I groundwater well production system within the Middle Sweetwater River Basin capable of producing a sustainable yield of up to 1,500 ac-ft/yr of potable water for the Otay WD. If it is deemed that a Middle Sweetwater River Basin Groundwater Well Production Project is viable then the consultant will develop and provide a groundwater well production project implementation plan and related scope of work. Rancho del Rey Well Groundwater Well Project In 1991, the McMillin Development Company drilled the Rancho del Rey Groundwater Well to augment grading water supplies for their Rancho del Rey development projects. Although the well was considered a “good producer,” little was known regarding its water quality and sustainable yield because the water was used solely for earthwork (i.e. dust control and soil compaction). The well was drilled to 865 feet, with a finished depth of 830 feet and produced approximately 400 AFY of low quality water for four years until its use was discontinued in April 1995 when the well was no longer needed. McMillin notified the Otay WD of its intent to sell off the groundwater well asset. In 1997, the Otay WD purchased an existing 7-inch well and the surrounding property on Rancho del Rey Parkway from the McMillin Company with the intent to develop it as a source of potable water. Treatment was required to remove salts and boron, among other constituents, using reverse osmosis membranes and ion exchange. In 2000, having received proposals for the design and construction of a reverse osmosis treatment facility that far exceeded the allocated budget, the Board of Directors instructed staff to suspend the project until such time as it became economically viable. In January 2010, citing the rising cost of imported water and the Otay WD's interest in securing its own water source for long-term supply reliability, the Board authorized Phase 1 for drilling and development of the Rancho del Rey Well. On March 3, 2010, the Board adopted the Mitigated Negative Declaration for this project and a Notice of Determination was filed with the County of San Diego on March 5, 2010. In September 2010, a new 12-inch production well was drilled to a depth of 900 feet through the groundwater formation and into fractured bedrock. Testing showed the long-term yield of the new well to be 450 gpm, higher than previous studies had estimated. Separation Processes, Otay Water District Water Supply Assessment Report Otay Hills Project 46 Inc. (SPI), a highly qualified membrane treatment firm, was hired to conduct a detailed economic feasibility study to confirm that the annualized unit cost of the new water source was economically competitive with other sources. The economic study estimated the unit cost of water to be $1, 500 to $2,000 per AF for an alternative that utilizes a seawater membrane for treating both salts and boron. When compared with the current imported treated water rate from the Water Authority, and with the knowledge that this rate will continually increase as MWD and the Water Authority raise their rates, the Rancho del Rey Well project appears to be economically viable. The Otay WD is continuing to pursue the Rancho del Rey groundwater well opportunity with due consideration of the recommendations of the existing reports and plans to develop a groundwater well production facility to extract approximately 500 AFY. For water planning purposes, production of groundwater from the Rancho del Rey well is considered “additional planned” for local supplies. Otay Mesa Lot 7 Groundwater Well In early 2001 the Otay WD was approached by a landowner representative about possible interest in purchasing an existing well or alternatively, acquiring groundwater supplied from the well located on Otay Mesa. The landowner, National Enterprises, Inc., reportedly stated that the well could produce 3,200 acre-feet per year with little or no treatment required prior to introducing the water into the Otay WD potable water system or alternatively, the recycled water system. In March 2001 authorization to proceed with testing of the Otay Mesa Lot 7 Groundwater Well was obtained and the Otay WD proceeded with the investigation of this potential groundwater supply opportunity. The May 2001 Geoscience Support Services, Inc. completed for the Otay WD the preparation of a report entitled, “Otay Mesa Lot 7 Well Investigation,” to assess the Otay Mesa Lot 7 Well. The scope of work included a geohydrologic evaluation of the well, analyses of the water quality samples, management and review of the well video log, and documentation of well pump testing. The primary findings, as documented in the report, formed the basis of the following recommendations: • For the existing well to be used as a potable water supply resource, a sanitary seal must be installed in accordance with the CDPH guidelines. • Drawdown in the well must be limited to avoid the possibility of collapsing the casing. • Recover from drawdown from pumping is slow and extraction would need to be terminated for up to 2 days to allow for groundwater level recovery. • The well water would need to be treated and/or blended with potable water prior to introduction into the potable water distribution system. The existing Otay Mesa Lot 7 Well, based upon the above findings, was determined not to be a reliable municipal supply of potable water and that better water quality and quantity perhaps could be discovered deeper or at an alternative location within the San Diego Formation. Otay Water District Water Supply Assessment Report Otay Hills Project 47 The Otay WD may still continue to pursue the Otay Mesa groundwater well opportunity with due consideration of the recommendations of the existing report. Based on the recommendations of the investigation report, a groundwater well production facility at Otay Mesa Lot 7 could realistically extract approximately 300 acre-feet per year. 6.3.1.4 Otay Water District Rosarito Ocean Desalination Project The Otay WD is considering the feasibility of purchasing desalinated water from a seawater reverse osmosis plant that may be located in Rosarito, Mexico. The treatment facility would be designed, constructed, and operated in Mexico by a third party. The Otay WD’s draft Desalination Feasibility Study, prepared in 2008, discusses the likely issues to be considered in terms of water treatment and monitoring, potential conveyance options within the United States from the international border to potential delivery points, and environmental, institutional, and permitting considerations for the Otay WD to import the Desalination project product water as a new local water supply resource. While the treatment facility for a Desalination project would not be designed or operated by the Otay WD, it will be important that the Otay WD maintain involvement with the planning, design, and construction of any future facility to ensure that the implemented processes provide a product water of acceptable quality for distribution and use within the Otay WD’s system as well as in other regional agencies’ systems that may use the product water, i.e. City of San Diego, the Water Authority, etc. A seawater reverse osmosis treatment plant removes constituents of concern from the seawater, producing a water quality that far exceeds established United States and California drinking water regulations for most parameters, however, a two-pass treatment system may be required to meet acceptable concentrations of boron and chlorides, similar to the levels seen within the existing Otay WD supply sources. The Desalination Feasibility Study addresses product water quality that is considered acceptable for public health and distribution. The Otay WD, or any other potential participating agencies, would be required to get approval from the DDW in order to use the desalinated seawater as a water source. Several alternative approaches are identified for getting this approval. These alternatives vary in their cost and their likelihood of meeting DDW approval. The Rosarito Desalination Facility Conveyance and Disinfection System Project report addresses two supply targets for the desalinated water (i.e. local and regional). The local alternative assumes that only Otay WD would participate and receive desalinated water, while the regional alternative assumes that other regional and/or local agencies would also participate in the Rosarito project. 6.3.2 Otay Water District Capital Improvement Program The Otay WD plans, designs, constructs, and operates water system facilities to acquire sufficient supplies and to meet projected ultimate demands placed upon the potable and recycled Otay Water District Water Supply Assessment Report Otay Hills Project 48 water systems. In addition, the Otay WD forecasts needs and plans for water supply requirements to meet projected demands at ultimate build out. The necessary water facilities and water supply projects are implemented and constructed when development activities proceed and require service to achieve timely and adequate cost-effective water service. New water facilities that are required to accommodate the forecasted growth within the entire Otay WD service area are defined and described within the Otay Water District WFMP Update. These facilities are incorporated into the annual Otay WD Six Year Capital Improvement Program (CIP) for implementation when required to support development activities. As major development plans are formulated and proceed through the land use jurisdictional agency approval processes, Otay WD prepares water system requirements specifically for the proposed development project consistent with the Otay WD WFMP Update. These requirements document, define, and describe all the potable water and recycled water system facilities to be constructed to provide an acceptable and adequate level of service to the proposed land uses, as well as the financial responsibility of the facilities required for service. The Otay WD funds the facilities identified as CIP projects. Established water meter capacity fees and user rates are collected to fund the CIP project facilities. The developer funds all other required water system facilities to provide water service to their project. Section 7 – Conclusion: Availability of Sufficient Supplies The Otay Hills project is currently located within the jurisdictions of the Otay WD, Water Authority, and MWD. To obtain permanent imported water supply service, land areas are required to be within the jurisdictions of the Otay WD, Water Authority, and MWD to utilize imported water supply. The Water Authority and MWD have an established process that ensures supplies are being planned to meet future growth. Any annexations and revisions to established land use plans are captured in the SANDAG updated forecasts for land use planning, demographics, and economic projections. SANDAG serves as the regional, intergovernmental planning agency that develops and provides forecast information. The Water Authority and MWD update their demand forecasts and supply needs based on the most recent SANDAG forecast approximately every five years to coincide with preparation of their urban water management plans. Prior to the next forecast update, local jurisdictions with land use authority may require water supply assessment and/or verification reports for proposed land developments that are not within the Otay WD, Water Authority, or MWD jurisdictions (i.e. pending or proposed annexations) or that have revised land use plans with either lower or higher development intensities than reflected in the existing growth forecasts. Proposed land areas with pending or proposed annexations, or revised land use plans, typically result in creating higher demand and supply requirements than previously anticipated. The Otay WD, Water Authority, and MWD next demand forecast and supply requirements and associated planning documents would then capture any increase or decrease in demands and required supplies as a result of annexations or revised land use planning decisions. Otay Water District Water Supply Assessment Report Otay Hills Project 49 MWD’s IRP identifies a mix of resources (imported and local) that, when implemented, will provide 100 percent reliability for full-service demands through the attainment of regional targets set for conservation, local supplies, State Water Project supplies, Colorado River supplies, groundwater banking, and water transfers. The 2015 IRP Update describes an adaptive management strategy to protect the region from future supply shortages. This adaptive management strategy has five components: achieve additional conservation savings, develop additional local water supplies, maintain Colorado River Aqueduct supplies, stabilize State Water Project supplies, and maximize the effectiveness of storage and transfer. MWD’s 2015 IRP has a plan for identifying and implementing additional resources that expand the ability for MWD to meet future changes and challenges as necessary to ensure future reliability of supplies. The proper management of these resources help to ensure that the southern California region, including San Diego County, will have adequate water supplies to meet long-term future demands. MWD adopted its 2015 UWMP, in accordance with state law, on May 9, 2016. The resource targets included in the preceding 2015 IRP Update serve as the foundation for the planning assumptions used in the 2015 UWMP. MWD’s 2015 UWMP contains a water supply reliability assessment that includes a detailed evaluation of the supplies necessary to meet demands over a 20-year period in average, single dry year, and multiple dry year periods. As part of this process, MWD also uses the current SANDAG regional growth forecast in calculating regional water demands for the Water Authority’s service area. As stated in MWD’s 2015 UWMP, the plan may be used as a source document for meeting the requirements of SB 610 until the next scheduled update is completed in 5 years (2020). The 2015 UWMP includes a “Justifications for Supply Projections” in Appendix A.3, that provides detailed documentation of the planning, legal, financial, and regulatory basis for including each source of supply in the plan. In the Findings Section of the Executive Summary (Page ES-5) of their 2015 UWMP, MWD states that MWD has supply capacities that would be sufficient to meet expected demands from 2020 through 2040 under the single dry-year and multiple dry-year conditions. MWD has plans for supply implementation and continued development of a diversified resource mix including programs in the Colorado River Aqueduct, State Water Project, Central Valley Transfers, local resource projects, and in-region storage that enables the region to meet its water supply needs. MWD’s 2015 UWMP identifies potential reserve supplies in the supply capability analysis (Tables 2-4, 2-5 and 2-6), which could be available to meet the unanticipated demands. The County Water Authority Act, Section 5 subdivision 11, states that the Water Authority “as far as practicable, shall provide each of its member agencies with adequate supplies of water to meet their expanding and increasing needs.” As part of preparation of a written water supply assessment report, an agency’s shortage contingency analysis should be considered in determining sufficiency of supply. Section 11 Otay Water District Water Supply Assessment Report Otay Hills Project 50 of the Water Authority’s 2015 Updated UWMP contains a detailed shortage contingency analysis that addresses a regional catastrophic shortage situation and drought management. The analysis demonstrates that the Water Authority and its member agencies, through the Integrated Contingency Plan, Emergency Storage Project, Carlsbad Desalination Project, and Water Shortage Contingency Plan are taking actions to prepare for and appropriately handle an interruption of water supplies. The 2017 Water Shortage Contingency Plan provides the Water Authority and its member agencies with a series of potential actions to take when faced with a shortage of imported water supplies from MWD due to prolonged drought or other supply shortfall conditions. The actions will help the region avoid or minimize the impacts of shortages and ensure an equitable allocation of supplies. The WSA Report identifies and describes the processes by which water demand projections for the proposed Otay Hills project will be fully included in the water demand and supply forecasts of the Urban Water Management Plans and other water resources planning documents of the Water Authority and MWD. Water supplies necessary to serve the demands of the proposed Otay Hills project, along with existing and other projected future users, as well as the actions necessary and status to develop these supplies, have been identified in the Otay Hills project WSA Report and will be included in the future water supply planning documents of the Water Authority and MWD. This WSA Report includes, among other information, an identification of existing water supply entitlements, water rights, water service contracts, water supply projects, or agreements relevant to the identified water supply needs for the proposed Otay Hills project. This WSA Report assesses, demonstrates, and documents that sufficient water supplies are planned for and are intended to be available over a 20-year planning horizon, under normal conditions and in single and multiple dry years to meet the projected demand of the proposed Otay Hills project and the existing and other planned development projects to be served by the Otay WD. Table 6 presents the forecasted balance of water demands and required supplies for the Otay WD service area under average or normal year conditions. The total demand for FY 2015 was 30,271 acre-feet. The demand for FY 2015 was 2,999 acre-feet lower than the demand in FY 2010 of 33,270 acre-feet. The drop in demand is a result of the unit price of water, the conservation efforts of users as a result of the prolonged drought, and the economy. Table 6 presents the forecasted balance of water demands and supplies for the Otay WD service area under single dry year conditions. Table 7 presents the forecasted balance of water demands and supplies for the Otay WD service area under multiple dry year conditions for the three-year period ending in 2019. The multiple dry year conditions for periods ending in 2025, 2030, and 2035 are provided in the Otay Water District 2015 UWMP. The projected potable demand and supply requirements shown the Tables 5 and 6 are from the Otay WD 2015 UWMP. Hot, dry weather may generate urban water demands that are about 6.4 percent greater than normal. This percentage was utilized to generate the dry year demands shown in Table 6. The recycled water supplies are assumed to experience no reduction in a dry year. Otay Water District Water Supply Assessment Report Otay Hills Project 51 Table 5 Projected Balance of Water Demands and Supplies Normal Year Conditions (acre feet) Description FY 2025 FY 2030 FY 2035 FY 2040 Demands Otay WD Demands 54,771 57,965 59,279 65,913 Active Conservation Savings (1,844) (1,585) (1,538) (1,587) Accelerated Forecast Growth (AFG) –Planning Area 12 46 46 46 46 AFG – Otay Sunroad EOM SPA 836 836 836 836 AFG - University Innovation District 11.7 11.7 11.7 11.7 AFG – Sunbow II, Phase 3 84.7 84.7 84.7 84.7 Passive Conservation Savings (4,497) (5,489) (6,040) (6,744) Total Demand 49,408.4 51,869.4 52,679.4 58,560.4 Supplies Water Authority Supply 43,508.4 45,869.4 46,479.4 52,060.4 Recycled Water Supply 5,900 6,000 6,200 6,500 Total Supply 49,408.4 51,868.4 52,679.4 58,560.4 Supply Surplus/(Deficit) 0 0 0 0 Otay Water District Water Supply Assessment Report Otay Hills Project 52 Table 6 presents the forecasted balance of water demands and supplies for the Otay WD service area under single dry year and multiple dry year conditions from the Otay Water District 2015 UWMP. Table 6 Projected Balance of Water Demands and Supplies Single Dry and Multiple Dry Year Conditions (acre feet) Normal Year Single Dry Year Multiple Dry Years FY 2011 First Dry Year First Dry Year Second Dry Year Third Dry Year Demands Otay WD Demands 37,176 38,749 38,844 40,378 42,430 Total Demand 37,176 38,749 38,844 40,378 42,430 Supplies Water Authority Supply 33,268 33,877 33,972 35,240 37,026 Recycled Water Supply 3,908 4,872 4,872 5,138 5,404 Total Supply 37,176 34,639 38,844 40,378 42,430 Supply Surplus/(Deficit) 0 0 0 0 0 District Demand totals with SBX7-7 conservation target achievement plus single dry year increase as shown. The Water Authority could implement its DMP. In this instance, the Water Authority may have to allocate supply shortages based on it equitable allocation methodology in its DMP. Dry year demands assumed to generate a 7% increase in demand over normal conditions for a single dry year. For multiple dry years an 8% increase in demand over normal conditions is projected in the first year, 14% in the second year and 21% increase is projected in the third year in addition to new demand growth. In evaluating the availability of sufficient water supply, the Otay Hills project development proponents will be required to participate in the development of alternative water supply project(s). This can be achieved through payment of the Meter Capacity Fee adopted by the Otay WD Board in November 2020. These water supply projects are in addition to those identified as sustainable supplies in the current Water Authority and MWD UWMP, IRP, Master Plans, and other planning documents. These new water supply projects are in response to the regional water supply issues related to climatological, environmental, legal, and other challenges that impact water source supply conditions, such as the court rulings regarding the Sacramento-San Joaquin Delta and the current ongoing western states drought conditions. These new additional water supply projects are not currently developed and are in various stages of the planning process. The Otay WD water supply development program includes but is not limited to projects such as the Middle Sweetwater River Basin Groundwater Well project and the Rancho del Rey Groundwater Well project. The Water Authority and MWD’s next forecasts and supply planning documents would capture any increase in water supplies resulting from any new water resources developed by the Otay WD. Otay Water District Water Supply Assessment Report Otay Hills Project 53 The Otay WD acknowledges the ever-present challenge of balancing water supply with demand and the inherent need to possess a flexible and adaptable water supply implementation strategy that can be relied upon during normal and dry weather conditions. The responsible regional water supply agencies have and will continue to adapt their resource plans and strategies to meet climate, environmental, and legal challenges so that they may continue to provide water supplies to their service areas. The regional water suppliers along with Otay WD fully intend to maintain sufficient reliable supplies through the 20-year planning horizon under normal, single, and multiple dry year conditions to meet projected demand of the Otay Hills project, along with existing and other planned development projects within the Otay WD service area. This WSA Report assesses, demonstrates, and documents that sufficient water supplies are planned for and are intended to be acquired, as well as the actions necessary and status to develop these supplies, to meet projected water demands of the Otay Hills project as well as existing and other reasonably foreseeable planned development projects within the Otay WD for a 20-year planning horizon, in normal and in single and multiple dry years. Otay Water District Water Supply Assessment Report Otay Hills Project 54 Source Documents Otay Hills Aggregate Mining and Inert Debris Engineered Landfill Operation SB 610 Compliance request letter received December 10, 2020. CH2M and Otay Water District, “Otay Water District 2015 Urban Water Management Plan Update”, May 2016. Otay Water District, “2015 Water Facilities Master Plan Update,” dated March 2016. Carollo and Otay Water District, 2015 Integrated Water Resources Plan Update, June 2015. San Diego County Water Authority, “Final 2015 Urban Water Management Plan, June, 2016. MWD Water District of Southern California, “2015 Urban Water Management Plan,” June 2016. PBS&J, “Draft Otay Water District North District Recycled Water System Development Project, Phase I Concept Study,” December 2008. NBS Lowry, “Middle Sweetwater River System Study Water Resources Audit,” June 1991. Michael R. Welch, “Middle Sweetwater River System Study Alternatives Evaluation,” May 1993. Michael R. Welch, “Middle Sweetwater River Basin Conjunctive Use Alternatives,” September 1994. Geoscience Support Services, Inc., “Otay Mesa Lot 7 Well Investigation,” May 2001. Boyle Engineering Corporation, “Groundwater Treatment Feasibility Study Ranch del Rey Well Site,” September 1996. Agreement for the Purchase of Treated Water from the Otay Water Treatment Plant between the City of San Diego and the Otay Water District. Agreement between the San Diego County Water Authority and Otay Water District regarding Implementation of the East County Regional Treated Water Improvement Program. Agreement between the San Diego County Water Authority and Otay Water District for Design, Construction, Operation, and Maintenance of the Otay 14 Flow Control Facility Modification. Otay Water District Water Supply Assessment Report Otay Hills Project 55 Agreement between the Otay Water District and the City of San Diego for Purchase of Reclaimed Water from the South Bay Water Reclamation Plant. Otay Water District Water Supply Assessment Report Otay Hills Project 56 Appendix A Otay Hills Project Location Otay Water District Water Supply Assessment Report Otay Hills Project 57 Otay Hills Project Vicinity Map Water SupplyAssessment Report for the Otay Hills Project SB 610 Compliance Otay Water District Board of Directors Meeting February 6, 2021 EXHIBIT D BACKGROUND •Senate Bill 610, effective on 1/1/2002, with the intent to improve the link between water supply availability and land use decisions. •SB 610 requires a Water Supply Assessment (WSA) to be included in the CEQA documents for a project. •Board approval required for submittal of the WSA Report to the County of San Diego. Otay Hills Project •Project is located at the terminus of East Calzada De La Fuente in the unincorporated County of San Diego area (East Otay Mesa). •Project to be located on 410 acres with activity taking place on 105 acres and the remainder placed into biological open space. •Requires a Specific Plan Amendment, Major Use Permit, and Reclamation Plan for surface mining and processing of construction aggregates and backfilling the pit with inert debris, as part of an Inert Debris Engineered Fill Operation (IDEFO) Otay Hills Project Details Project proposes to establish a mineral resource recovery operation and associated activities to create construction aggregates and materials to serve the economy of San Diego County for an approximate 87-year period. Anticipated operations at the site would include the following activities: •Phased recovery of rock resources •Materials processing •Concrete batch plant •Cement treated base plant •Asphalt base plant •Recycle of asphalt and concrete products •Inert debris engineered fill operation (IDEFO) Proposed Water Use at the Project Equipment/ Process Description Total Average Water Demand, GPY Total Average Water Demand, AFY Aggregate Plant Production, Dust Control, Water Truck 20,925,629 64.2 Ready Mix Concrete Plant 1,000 CY Production 15,000,000 46.0 Cement Treated Base Plant 200 Ton Production 359,281 1.1 Hot Mix Asphalt Plant 1,000 Ton Production 250,000 0.8 IDEFO Inert Debris Engineered Fill Operation 8,145,720 25.0 TOTAL 137.1 OtayWater DistrictProjected Balance of Supply and Demand Description FY 2025 FY 2030 FY 2035 FY 2040 Demands Otay WD Demands 54,771 57,965 59,279 65,913 Active Conservation Savings (1,844)(1,585)(1,538)(1,587) Accelerated Forecast Growth (AFG) –PA 12 46 46 46 46 AFG –Otay Sunroad EOM SPA 836 836 836 836 AFG -University Innovation District 11.7 11.7 11.7 11.7 AFG –Sunbow 2, Phase III 84.7 84.7 84.7 84.7 Passive Conservation Savings (4,497)(5,489)(6,040)(6,744) Total Demand 49,408.4 51,869.4 52,679.4 58,560.4 Supplies Water Authority Supply 43,508.4 45,869.4 46,479.4 52,060.4 Recycled Water Supply 5,900 6,000 6,200 6,500 Total Supply 49,408.4 51,869.4 52,679.4 58,560.4 Supply Surplus/(Deficit)0 0 0 0 Conclusion •Water demand and supply forecasts are included in the planning documents of Metropolitan Water District of Southern California, San Diego County Water Authority, and the Otay Water District. •Actions necessary to develop the identified water supplies are documented. •The SB 610 WSA Report documents that sufficient water supplies are planned for and available over the next 20 years. •The Board has met the intent of the SB 610 statute. Questions? STAFF REPORT TYPE MEETING:Regular Board MEETING DATE: February 3, 2021 SUBMITTED BY:Andrea Carey Customer Service Manager PROJECT: DIV. NO.All APPROVED BY: Joseph R. Beachem, Chief Financial Officer Jose Martinez, General Manager SUBJECT:Adopt Ordinance No. 581 to Amend Section 72, Penalties and Damages, of the District’s Code of Ordinances Effective March 1, 2021, to Allow the District to Lien Rental Property if There are Outstanding Balances Owed by Tenants, and to Expand the Scope of When the District Can Require a Property Remain in the Owner’s Name GENERAL MANAGER’S RECOMMENDATION: That the Board adopt Ordinance No. 581 to amend Section 72, Penalties and Damages, of the District’s Code of Ordinances effective March 1, 2021, to allow the District to lien rental property if there are outstanding balances owed by tenants, and to expand the scope of when the District can require a property remain in the owner’s name. COMMITTEE ACTION: See Attachment A. PURPOSE: To amend Section 72, Penalties and Damages, of the District’s Code of Ordinances to allow the District to establish procedures to lien property for outstanding balances owed by tenants, and to expand the scope of when the District can require a property remain in the owner’s name. ANALYSIS: On March 4, 2020, Governor Gavin Newsom declared a state of emergency in California due to the 2019 novel coronavirus (COVID-19) health emergency. On April 2nd, Governor Newsom signed Executive Order N-42- 20 suspending the ability of water utilities, throughout the state, AGENDA ITEM 8a to disconnect residential or small business water services for non- payment. The inability to disconnect water service for non-payment has resulted in a substantial increase in delinquent customer accounts. The following charts show the number of lockable accounts and their associated past due dollar amounts since April 2020. April May June July Aug Sept Oct Nov Dec Owner 447 589 600 469 498 578 576 681 707 Tenant 424 421 429 405 425 477 464 501 593 Total 871 1010 1029 874 923 1055 1040 1182 1300 April May June July Aug Sept Oct Nov Dec Owner $95,334 $196,864 $240,513 $198,605 $205,805 $218,828 $232,601 $287,419 $293,197 Tenant $70,878 $116,506 $119,982 $130,590 $158,471 $193,412 $204,142 $244,015 $278,517 Total $166,212 $313,370 $360,495 $329,195 $364,276 $412,240 $436,743 $531,434 $571,714 Historically, disconnecting service for non-payment has been the most expedient way to collect outstanding balances. However, the District has other collection methods at its disposal to attempt to collect outstanding debt such as: •Placing a lien on the property •Sending the outstanding balance to the county to be collected on the property tax roll •Sending the unpaid balance to an outside collection agency •Offering customers payment arrangements to pay off the outstanding balance over time These methods were explained in detail at the January Board meeting as a part of the staff report on customer delinquencies. The lien process has historically been used to secure payment when disconnection was not possible, such as in the case of our sewer only customers, or closed owner accounts who fail to pay their final balance but retain ownership of the property. In response to rising delinquent balances on active owner accounts, the lien process was recently expanded to include these accounts as well. Due to uncertainty as to when the Governor’s order that prohibits disconnection will expire or if there will be further restrictions on disconnecting service in the future, staff is recommending the District expand the lien process to include rental properties for outstanding tenant balances. Water Code Section 25806 allows the District to secure a lien against a property for any unpaid charges. After consulting with General Counsel, it was confirmed that the outstanding balance, regardless if it is in the name of the owner or a tenant, is inseparable from the property. The District may choose to enter a judgement lien against the property, place a tax lien for the outstanding balance on the county tax roll or, the most common approach, both. The judgement lien secures payment year-round and requires payment prior to release of the lien which is needed before a property sale or refinance. The tax lien is an annual process where all outstanding balances can be forwarded to the county for collection on the property tax roll. Changes to Section 72 of the District’s Code of Ordinances are being recommended by staff to allow the District to lien properties with outstanding tenant balances as well as expand the scope of when the District can require the property owner’s name remain on the utility account. Currently, the code allows for accounts that have been locked three times over a 24-month period or failed to comply with the terms of payment arrangements four times to remain in the name of the owner for subsequent tenants. The recommended changes are proposed in order to give the District greater flexibility and ability to collect. Accounts where tenants have been locked numerous times, habitually late or have a history of multiple tenants not paying their final balance can now be required to be in an owner-only status which means the owner is billed directly for the rental property water usage and is ultimately responsible for the account balance. General Counsel has reviewed and approved these proposed changes as well as proposing additional minor administrative changes to Section 72. If the Board approves the changes to Section 72, staff will implement procedures for expanding the lien process to include tenant outstanding balances. Staff expects to begin with tenant accounts who start service after March 1, 2021. Accounts that were in a tenant’s name prior to March 1st will have a grace period until July 1, 2021. If an existing tenant account terminates prior to July 1, 2021, any outstanding balances will be sent to the District’s outside collection agency based on the current process. This grace period will give staff time to notify all owners and current tenants of the change in procedure. After July 1, 2021, all tenant outstanding balances will be subject to lien. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The District increased its write-off budget from $109,000 to $485,000 in FY 2021 due to the expected financial implications of COVID-19. Based on historical numbers, adding the ability to lien property for tenant outstanding balances may reduce the District’s uncollectable balances by as much as 50% going forward. The costs associated with filing the lien with the county or sending the outstanding balance to be placed on the tax roll are passed through to the property owner. LEGAL IMPACT: None. Attachments: A)Committee Action B)Ordinance No. 581 Exhibit 1 – Section 72 Strike-through Exhibit 2 – Section 72 Proposed ATTACHMENT A SUBJECT/PROJECT:Adopt Ordinance No. 581 to Amend Section 72, Penalties and Damages, of the District’s Code of Ordinances Effective March 1, 2021, to Allow the District to Lien Property if There are Outstanding Balances Owed by Tenants, and to Expand the Scope of When the District Can Require a Property Remain in the Owner’s Name COMMITTEE ACTION: The Finance and Administration Committee (Committee) reviewed this item at a meeting held on January 20, 2021 and the following comments were made: •Staff is requesting that the Board adopt Ordinance No. 581 to amend Section 72, Penalties and Damages, of the District’s Code of Ordinances effective March 1, 2021, to allow the district to lien rental property if there are outstanding balances owed by tenants, and to expand the scope of when the District can require a property to remain in the owner’s name. •Staff presented information from the staff report. •Prior to the COVID-19 pandemic, the average number of accounts locked monthly for nonpayment was approximately 200 accounts. From April 2020 to the end of December 2020, there were 1300 accounts that were over 60-days delinquent with a combined total outstanding balance of approximately $571,000 that would be deemed lockable prior to the pandemic. •Staff indicated that other agencies, countywide, are also seeing their delinquencies continue to grow. In July 2020 when customers were provided a stimulus check from the Federal Government, some customers started to pay their bills, but they stopped when the COVID-19 shutdowns began to get restrictive again. Those customers who have not been paying their bills, have completely stopped paying their bills. However, those customers who were paying their bills, are continuing to pay their bills. •In response to an inquiry from the Committee, staff indicated that the program Sweetwater Authority is proposing to legislators is to be implemented by an organization, which would be funded by the State, that would manage the distribution of funds to qualified recipients. The District would receive payment from the organization for customers outstanding water bill through the program. Sweetwater Authority is working with CWA and is currently looking for a legislator to sponsor the bill. •Staff shared that in addition to the legislative bill that Sweetwater Authority is proposing, the U.S. Treasury has provided funding to the States through their Emergency Rental Assistance Program. Counties and Cities with populations of 200,000+ can apply for the funding and would have oversight in distributing the funds to eligible households as defined by the program. The City of Chula Vista qualifies and has applied for funding. However, there is no guarantee the District will receive funds from the grant and staff plans to send a letter to the City of Chula Vista to remind them the funding can also be used by grantees to assist with their utility bill payments. •Staff indicated in response to an inquiry from the Committee that the $109,000 was the budget determined for last fiscal year for the write-off of uncollected customer balances. The budget was increased to $485,000 for Fiscal Year 2021 due to the expected financial implications of COVID-19. Upon completion of the discussion, the Committee supported staff’s recommendation and presentation to the full board as an action item. 1 ORDINANCE NO. 581 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING SECTION 72, PENALTIES AND DAMAGES, OF THE DISTRICT’S CODE OF ORDINANCES BE IT ORDAINED by the Board of Directors of Otay Water District that the District’s Code of Ordinances Section 72, Penalties and Damages, be amended as per Exhibit 1 to this resolution. NOW, THEREFORE, BE IT RESOLVED that the new proposed Section 72, Penalties and Damages (Exhibit 2) of the Code of Ordinances shall become effective March 1, 2021. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting duly held this 3rd day of February 2021, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: ________________________________ President ATTEST: __________________________ District Secretary Attachment B SECTION 72 PENALTIES AND DAMAGES 72.01 GENERAL A.User and Owner Responsibility. Each person receiving service, or that owns a property that receives service, agrees to pay the District any applicable fees and charges. Such persons are also responsible for all costs and damages in connection with any violation of this Code relating to their service. B.District Not Liable. The District shall bear no liability for any cost, damage, claim or expense incurred by District or any responsible party or third party on behalf of the District arising from or related to any violation, including, but not limited to, costs, damages, claims, or expenses arising from any corrective action of the District. Such corrective actions include, but are not limited to, the removal, confiscation, disposition or use of any device, equipment, improvement or material encroaching on any District property or used in connection with any other violation. C.District Obligation to Collect Damages. Pursuant to Government Code Section 53069.6, the District shall take all practical and reasonable steps, including appropriate legal action, if necessary, to recover civil damages for the negligent, willful, or unlawful damaging or taking of property of the District. D.Assessment of Damages. Actual damages resulting from any violation, including late payment or failure or refusal to pay for service and any interest thereon, may be assessed and collected as part of a customer’s monthly bill to the extent allowed by law. The District will separately invoice any actual damages not assessed on a monthly bill, including any damages assessed against any responsible person who is not a customer. E.Unpaid or Partially Paid Bills. Bills issued by the District are due in full as provided in such bills. Failure to timely pay bills in full may lead to a reduction, suspension, or termination of service, as provided in Section 72.02(B), below, in Policy 54 Section 34 of this Code, or pursuant to other provisions of this Code or applicable law. In addition, if bills remain unpaid, in full or in part, the District may lien the delinquent real property and may assess damages and penalties established by District or otherwise authorized by law. 72.02 VIOLATIONS AND GENERAL PENALTIES FOR VIOLATIONS A.Notice of Violation. Notice and a reasonable period of time to correct athe violation(s) will be given prior to the termination, reduction or suspension of service or the imposition of any administrative fine. However, the District may, without notice, correct any condition or violation that endangers the health or safety or impairs any District service, facility or property or is otherwise determined by the District to require immediate action. Exhibit 1 1.Investigative Procedures. If a possible violation is identified, observed or reported, the District will contact the allegedly responsible party to investigate. If the violation is in fact occurring, District staff will issue a notice of violation or otherwise inform the responsible party that corrective actions must be taken within a period of time deemed reasonable by the District, taking into consideration the nature of the violation and the potential damage that can arise if the violation continues. 2.Content of Notice of Violation. The notice will describe the violation(s), indicate the actions that must be taken, and indicate the date by which those actions must be taken. Unless immediate action is required, the notice will provide a reasonable time for the violation(s) to be corrected. The notice will also specify the amount of any delinquency, actual damages or other amounts due the District, if any, and the telephone number of a representative of the District who can provide additional information. 3.No Notice Required; District Action. If the District determines that immediate or prompt correction of the violation is necessary to prevent waste or to maintain the integrity of the water supply, systems or facilities of the District, or for the immediate protection of the health, safety or welfare of persons or property, or for any other compelling reason, the District will take any action deemed necessary (including suspension, reduction or termination of service; locking or removal of meters; or repairs of any improvements) and a notice will be left at the affected parcel specifying any further corrective actions required. Any costs incurred by District and any applicable fines will be the responsibility of the responsible party. 4.Notice; Failure to Comply. The responsible party will be given an opportunity to correct the violation(s) and to provide verbal, written and pictorial exculpatory evidence. If such evidence does not exonerate the responsible partyies and if the violation(s) are not corrected to the satisfaction of the District within the time provided, the District may assess costs, and penalties, and administrative fines and may take any other action or pursue any other remedy available. Furthermore, if the violation(s) concerns any service requirement or facility, or if required to prevent waste or to protect the integrity of the system or the health and safety of the public, the District may suspend, reduce or terminate service to the extent permitted by law. B.Service Termination, Suspension or Reduction; Removing or Locking Meters. Service may be reduced, suspended or terminated for failure to pay for service or in connection with a violation of this Code or applicable law. Termination, suspension or reduction of service will proceed as follows: 1.Notice Prior to Termination, Suspension or Reduction of Service. Except as provided in Paragraph A, above, or in other provisions of this Code or applicable law, not less than ten (10) days notice will be given prior to the date service will beis reduced, suspended or terminated; provided that, where service is terminated due to failure to comply with the terms of an amortization agreement, under Policy 54 Section 34 of this Code, only forty-eight (48) hoursfive (5) days’ prior notice is required. The notice will be delivered to the affected parcel and, if the owner of record does not reside in the affected parcel, a copy of the notice will be forwarded to the owner’s address on record with the assessor’s office via any available means, such as personal delivery, certified mail return receipt requested, email, fax or fed-exovernight mail. 2.Termination for failure to pay for service. The District may discontinue any or all service due to failure to pay the whole or any part of a bill issued by the District. In connection with termination of water service, the provisions of Section 60373 of the Government Code, or any other appropriate provision of law, or as set forth in Section 34Policy 54 of this Code of Ordinance, will be followed. In connection with sewer, Section 71672 of the California Water Code or other applicable requirements will be followed. C.Reconnection or Reinstatement of Service, Unlocking or Reinstalling Meters. If service is reduced, suspended or terminated for any reason, each of the following conditions applicable to the situation must be satisfied or arrangements satisfactory to the General Manager or a designee must be made before service is reinstated: 1.Outstanding amounts for service bills, including any service charges for benefits derived from the violation, must be paid; 2.All required deposits (including any security deposits), actual damages, fines, costs, charges, and penalties must be paid; 3.Any amounts due for the removal, locking, servicing, repair or replacement of meters or other facilities required for service must be paid at the rates in effect at the time of reinstatement, as set forth on Appendix A to this Code or other schedule of fees then in effect; 4.All violations and related damages or conditions must have been corrected and/or repaired and evidence satisfactory to the District to that effect and demonstrating that it is safe to reinstate service, must have been provided to and approved by the District; and 5.If the service was originally in the name of a tenant, the District may require that the owner of the parcel to request the service account is placed in theunder his or her name of the owner and that the owner assume responsibility for the service. D. Owner Responsibility for Account. In addition to owners’ obligations under subsection (A) of section 72.01 and subsection (C)(5) of Section 72.02, above, and any other remedies provided by this Code or by applicable law, Owners may be required to deliver to the District a form of acknowledgement or authorization for service to a tenant. If the property has a history of tenants who do not pay their final balances, the District reserves the right to demand that the property owner take responsibility for services to the tenant-occupied parcel. In addition,The District also reserves the right to demand that the property owner take responsibility for services to the tenant-occupied parcel if any of the following occur: (i) a tenant engages in any violation, (ii) if the District has reduced, suspended or terminated any service to a tenant three (3) times within any twenty-four (24) month period, or (iii) the tenant has been delinquent five (5) or more times.has failed or refuses to comply with the terms of payment arrangements with the District four (4) times, the District reserves the right to demand that the property owner take responsibility for services to the tenant- occupied parcel. The General Manager or a designee shall develop procedures to implement these requirements. Pursuant to Water Code Section 25806, the District may place a lien on the property for unpaid bills by a tenant. The District will make a good faith effort to notify an owner if a tenant-occupied account is delinquent, however, it is ultimately the owner’s responsibility to check with the District for any outstanding balances when a tenant vacates the property. For more information on property liens, see Policy 54. D.E. Right of Access to Customer’s Premises; Interference. If any person refuses to consent to an investigation of a possible violation, or prevents or refuses to allow access to District staff or authorized representatives to any premises or facility during an investigation or in connection with any termination, reduction or suspension of service, the District may seek an injunction or a warrant, as provided in Section 71601 of the Water Code. E.F. Other Remedies. In addition to the actions contemplated in this Section, the District may seek other remedies authorized or required by any applicable law, including imposing an administrative fine, pursuant to Section 72.06, or pursuing other available civil or criminal remedies. 72.03 CERTAIN SPECIFIC OPERATIONAL VIOLATIONS A.Unauthorized Connections. The District shall bear no cost or liability for any unauthorized connection. In addition to other remedies, any unauthorized connection is subject to a Type II fine, pursuant to Section 72.06 depending upon the severity, duration and reoccurrence of the violation and any other factors the District may reasonably take into consideration.., Further, the District may demand that the unauthorized connection be immediately disconnected. In the alternative, if the customer refuses to take immediate action, or if immediate actions is are necessary as set forth in Section 72.02(A)(3), above, the District may immediately disconnect, remove, confiscate, destroy, or dispose of any parts installed with or used for the unauthorized connection, all at the expense of the customer and any other responsible party. To the extent allowed by law, the District may also, immediately or as otherwise deemed advisable by the District, terminate service to any parcel and any person that allows, uses or benefits from such unauthorized connection. B.Water wWaste. No customer shall knowingly permit leaks or other wastes of water, including, but not limited to, allowing runoff on any portion of his or her property, engaging in non-permitted uses of water, or failing to take corrective action after notice of any leaks or water waste is given. If the District determines that water waste is occurring, the District will: 1.Notify the customer that they are in violation of the District’s Code of Ordinances. 2.Notwithstanding the foregoing, the District may, without prior notice, repair or replace any District controlled facilities at the cost of the person(s) identified as the responsible party, if any. 3.If the water waste is due to a condition within the customer’s property or facilities, the District may (i) require the customer to repair or replace the affected facilities, immediately or within a reasonable time, depending on the situation; or (ii) if necessary, to prevent further waste, adjust, lock or remove the meter. If any repair or replacement required is not completed in a timely manner, the District may perform the repair or replacement at the cost of the customer or may terminate service without further notice. C.Meter Tampering. In addition to other remedies, meter tampering is subject to a Type II fine pursuant to Section 72.06 depending upon the severity, duration, and reoccurrence of the violation, and any other factors the District may reasonably take into consideration. Additionally, meter tampering may be prosecuted as a crime under Section 498 of the California Penal Code, as set forth in Section 73.01 of this Code. D.Fire Service Violation. Fire service is subject to compliance with all provisions of this Code and the law concerning water service. , and fFailure to comply with such provisions may result in the reduction, suspension, termination or disconnection of water service for fire protection, without any liability to District. Furthermore, illegal connections or other violations relating to fire service are subject to either a Type I or Type II fine, at the option of the District, and may be prosecuted as crimes. E.Backflow pPrevention, sScreens and oOther sSafety dDevices. If service requirements include the installation, testing and maintenance of backflow prevention devices (Section 23.04 of this Code), screens or other safety operational items, in addition to, or in lieu of, other remedies provided herein, the District may apply any of the remedies under Section VI and VII of the District’s Ordinance No. 386, as amended or renumbered. Furthermore, violations relating to backflow testing may be prosecuted as set forth in Section 73.01 of this Code. Violations of backflow requirements or knowingly filing a false statement or report required by a local health officer are subject to either a Type I or Type II fine, at the option of the District, pursuant to Section 72.06, below. F.Violation Concerning Recycled Water Service. In addition to any fine, revocation, suspension or penalty imposed under Section 26 in connection with any violation of said Section, including permit suspension or revocation under Section 26.07.C, the District may (i) suspend or terminate water and or sewer service to the property, the owner and/or the operator; (ii) require payment by the owner for any damage to the District facilities, reimbursement to District of costs and expenses, or fines imposed on the District in connection with such violation; or (iii) prosecute the responsible party under any applicable provision of this Code, the Water Code or the Penal Code. Additionally, any violation concerning recycled water service is subject to either a Type I or Type II fine, at the option of the District, pursuant to Section 72.06, below. G.Violation Concerning Sewer Service. In addition to any other remedy, fine, or penalty provided by this Code or applicable law, failure to comply with any requirements of sewer service, including requirements for the preservation of public health, safety and welfare and including, but not limited to, the requirements established under Article II, Chapter 2, Sections 50 to 56.04 of this Code, as hereafter amended or as supplemented by other District Rules and Regulations for Sewer Service, the California Health and Safety Code, the California Code of Regulations, Titles 17 and 22, and Water Agency Standards. Furthermore, may be prosecuted as set forth in Section 73.01 of this Code. Additionally, any violation concerning sewer service is subject to a Type I or Type II fine, at the option of the District, pursuant to Section 72.06, below. H.Theft, Fraud, or Misappropriation. In addition to any other remedy, fine or penalty provided by this Code or applicable law, any violation involving theft, fraud or misappropriation of District water, services, or property is subject to a Type I or Type II fine, at the option of the District, pursuant to Section 72.06, below. 72.04 VIOLATIONS OF CONSERVATION OR OTHER WATER USE RESTRICTION PROVISIONS The District has established and published conservation measures set forth in Section 39 of the Code. Commencing with declared Level 2 conditions, the District may assess water shortage rates and charges previously adopted. In addition, after notice of the declared water shortage level is given as required by law, any person who uses, causes to be used, or permits the use of water in violation of such requirements (other than a person who qualifies for an applicable exemption, if any) may be assessed damages, penalties, and fines. A.Additional Pprovisions cConcerning uUse Rrestriction vViolations. In addition to payment of actual damages, the following may apply to a violation of any water conservation or water use restriction measure: 1.A change onf the account holder shall not cause the account to revert to pre-violation status unless the new account holder provides evidence that it is not related to the violator and had no responsibility for the prior account. 2.The District may reduce, suspend or terminate service to any parcel immediately and without further notice if the violation involves or results in water waste, as set for in Section 72.03(B), above. 3.Willful violations of mandatory conservation measures described in Section 39 of this Code may be enforced by terminating service to the property at which the violation occurs, as provided by Section 356 of the California Water Code. B.Prosecution for vViolations of cConservation Mmeasures. Pursuant to Section 377 and 71644 of the California Water Code, each violation of the District’s Conservation Ordinance, set forth in Section 39 of this Code, may be prosecuted as a misdemeanor, punishable by imprisonment in the County jail for no more than thirty (30) days or by a fine, as set forth in subsection (C), below. C.Assessment of fFines for Vviolations of cConservation or wWater uUse rRestriction pProvisions. Any responsible party who fails to comply with any conservation or use restriction measure is subject to the assessment of an administrative Type I fine, added to account, pursuant to Section 72.06, below. 72.05 VIOLATIONS INVOLVING DISTRICT REAL PROPERTY A.Removal, Disposition and Costs. The District has absolute discretion to determine the corrective action required in connection with any violation involving District real property, including requiring the owner of any unauthorized encroachment or improvement to remove it, or taking action to remove it immediately and without notice. Any improvements or uses placed within or on any District property or right of way are subject to the following: 1. Costs and Damages. All costs and damages shall be the responsibility of the customer and any other responsible party. Furthermore, the District shall not be liable for costs to repair or replace any unauthorized encroachment or improvement, or any property, improvement or thing used in connection with, supported by or attached thereto. 2.Burden of proof. The burden shall be on the user to prove to the District’s satisfaction, the authority, scope, and extent of any right to access, improve or use the District’s property. Only written evidence in the form of an agreement, deed, statute, recorded or official map or plat, governmental regulation or other official documentright may be used to establish such claim of right. B.Notice. In connection with any improvement or use that does not constitute a health hazard and does not interfere with the District’s use of its property, the District will give written notice of up to sixty (60) days, at the discretion of the General Manager, to cease, terminate, eliminate or remove the offending improvement, structure or use. Any written notice will be given to the responsible party or posted at the property where the trespass or encroachment occurs. If the responsible party is not the owner of any real property affected by the violation, the District will also give notice to the owner of record at the address on record with the assessor’s office via personal delivery, certified mail return receipt requested, or via Fed-Exovernight mail. C. Immediate Aaction. In connection with any improvement that constitutes a health hazard or interferes with the District’s use of any District property, the District will take any immediate action deemed necessary by the General Manager. D.Fines. In addition to all other remedies provided under this Article or under applicable law, the District may impose a fine as provided in Section 72.06. Additionally, the District may impose a fine up to either the amount specified on any sign prohibiting trespass, or a Type I or Type II fine, at the option of the District, in connection with any trespass on District property in violation of a sign prohibiting trespassing, pursuant to Section 72.06, below. E.Separate vViolation. A separate violation will accrue for each day after the deadline to cease, terminate, eliminate or remove the trespass or encroachment, as set forth in the notice. 72.06 ADMINISTRATIVE FINES Any administrative fines established herein shall be in the nature of civil penalties and shall be additional and cumulative to any other fines, damages or any other charges established by the District and are also separate from and cumulative to any other civil or criminal penalty, fine or remedy. In connection with each violation, the District may assess a fine up to the amount specified in the schedule of fines for the type of fine being imposed. Each day during which a violation is in effect constitutes a separate violation and violations are cumulative while the account is in the name of the original violator or any person that participated in or benefited from the violation. Except where the violation creates an immediate danger to public health or safety, the person responsible for the continuing violation will be provided a reasonable period of time to correct or otherwise remedy the violation(s) prior to the imposition of administrative fines. A.Assessment of Fines for Technical Violations of Other Code Provisions. Any person who engages in a violation of any provision of this Code is subject to the assessment of a separate administrative Type I Fine, unless subject to a more severe fine as set forth in this Code. B.Assessment of Separate Fines. Nothing in this code or the limits specified per violation shall prevent the imposition of separate fines for each separate violation committed during a single act. For example, in connection with a violation concerning sewer service that involves a trespass on any portion of the District’s real property, separate fines may be assessed for the trespass, the damage to District personal property, the damage to District real property; the damage to the sewer system and the activity resulting on all the damages. C.Types of Fines. The amount for each type of fine specified below may increase automatically to reflect any higher amount authorized by law or regulation. The District has determined to establish two types of fines based on the nature of the violation, as follows: 1.Type I Fine. Any violation that does not have the potential to endanger the health or safety of the public. The fine will not exceed the amount specified in the Section 36900(b) of the California Government Code or Appendix A for a first, second, third or each additional violation of that same ordinance or requirement within a twelve-month period. 2.Type II Fine. Any violation that has the potential to endanger the public health or safety, including, but not limited to, unauthorized or illegal connections, meter tampering, water theft, , or knowingly filing a false statement or report required by a local health officer . The fine will not exceed the amount specified on Appendix A per for each day the violation is identified or continues. D.Collection of Fines. Any fines assessed by the District are payable directly to the District and, are due upon issuance or as otherwise indicated on the notice or bill, and are delinquent 30 calendar days from the due date. E.Notice of Administrative Fine; Content. Notice of an administrative fine pursuant to this section will contain the following information: (i) a brief description of the violation(s); (ii) the date and location of the violation(s); (iii) a brief description of corrective action(s) required, as appropriate; (iv) a statement explaining that each day the violation continues constitutes a new violation; (v) in the case of violations creating an immediate danger to public health or safety, the amount of civil penalty assessed or, in all other cases, the amount of civil penalty to be assessed if the violation(s) is/are not corrected within the time provided by the notice; (vi) a statement of the procedure for payment and the consequences of failure to pay; (vii) contact information for the District employee that should be contacted to discuss the notice and to whomprovide evidence of compliance can be provided; and (viii) a brief statement describing the responsible party’s right to request further review, pursuant to subsection (F), below. F.Option for Board Review . Persons receiving a Notice of Administrative Fine may request Board review. The request for Board consideration must be in writing, must be received by the District Secretary within ten (10) calendar days from the date of the notice and must include contact information, an explanation of the basis for the request, and any supporting documentation said person(s) wish to provide to the Board for review and consideration. District staff will review the petitioner’s request and will make a recommendation to the Board in light of its investigation. The District will provide notice of the date, time, and place for Board consideration by electronic means, facsimile or first -class mail sent to the return addressee indicated on the written request. G.Any Ffines Aassessed Ppursuant to the Notice of Administrative Fines must be timely paid notwithstanding the filing of a request for Board review. At the time of Board review, the petitioner may, address the Board and respond to the charges to show good cause why the fine should not be imposed; however, the customer is not entitled to a full judicial-type hearing with cross examination, sworn testimony, etc. In accordance with the provisions of Government Code Section 53069.4, the Board’s determination shall be final and conclusive, and shall be deemed confirmed, if not appealed within 20 calendar days to the Superior Court of the County of San Diego. SECTION 72 PENALTIES AND DAMAGES 72.01 GENERAL A.User and Owner Responsibility. Each person receiving service, or that owns a property that receives service, agrees to pay the District any applicable fees and charges. Such persons are also responsible for all costs and damages in connection with any violation of this Code relating to their service. B.District Not Liable. The District shall bear no liability for any cost, damage, claim or expense incurred by District or any responsible party or third party on behalf of the District arising from or related to any violation including, but not limited to, costs, damages, claims, or expenses arising from any corrective action of the District. Such corrective actions include, but are not limited to, the removal, confiscation, disposition or use of any device, equipment, improvement or material encroaching on any District property or used in connection with any other violation. C.District Obligation to Collect Damages. Pursuant to Government Code Section 53069.6, the District shall take all practical and reasonable steps, including appropriate legal action, if necessary, to recover civil damages for the negligent, willful, or unlawful damaging or taking of property of the District. D.Assessment of Damages. Actual damages resulting from any violation, including late payment or failure or refusal to pay for service and any interest thereon, may be assessed and collected as part of a customer’s monthly bill to the extent allowed by law. The District will separately invoice any actual damages not assessed on a monthly bill, including any damages assessed against any responsible person who is not a customer. E.Unpaid or Partially Paid Bills. Bills issued by the District are due in full as provided in such bills. Failure to timely pay bills in full may lead to a reduction, suspension, or termination of service, as provided in Section 72.02(B), below, in Policy 54 of this Code, or pursuant to other provisions of this Code or applicable law. In addition, if bills remain unpaid, in full or in part, the District may lien the delinquent real property and may assess damages and penalties established by District or otherwise authorized by law. 72.02 VIOLATIONS AND GENERAL PENALTIES FOR VIOLATIONS A.Notice of Violation. Notice and a reasonable period of time to correct the violation(s) will be given prior to the termination, reduction or suspension of service or the imposition of any administrative fine. However, the District may, without notice, correct any condition or violation that endangers the health or safety or impairs any District service, facility or property or is otherwise determined by the District to require immediate action. Exhibit 2 1. Investigative Procedures. If a possible violation is identified, observed or reported, the District will contact the allegedly responsible party to investigate. If the violation is in fact occurring, District staff will issue a notice of violation or otherwise inform the responsible party that corrective actions must be taken within a period of time deemed reasonable by the District, taking into consideration the nature of the violation and the potential damage that can arise if the violation continues. 2. Content of Notice of Violation. The notice will describe the violation(s), indicate the actions that must be taken, and indicate the date by which those actions must be taken. Unless immediate action is required, the notice will provide a reasonable time for the violation(s) to be corrected. The notice will also specify the amount of any delinquency, actual damages or other amounts due the District, if any, and the telephone number of a representative of the District who can provide additional information. 3. No Notice Required; District Action. If the District determines that immediate or prompt correction of the violation is necessary to prevent waste or to maintain the integrity of the water supply, systems or facilities of the District, or for the immediate protection of the health, safety or welfare of persons or property, or for any other compelling reason, the District will take any action deemed necessary (including suspension, reduction or termination of service; locking or removal of meters; or repairs of any improvements) and a notice will be left at the affected parcel specifying any further corrective actions required. Any costs incurred by District and any applicable fines will be the responsibility of the responsible party. 4. Notice; Failure to Comply. The responsible party will be given an opportunity to correct the violation(s) and to provide verbal, written and pictorial exculpatory evidence. If such evidence does not exonerate the responsible party and if the violation(s) are not corrected to the satisfaction of the District within the time provided, the District may assess costs, penalties, and administrative fines and may take any other action or pursue any other remedy available. Furthermore, if the violation(s) concern any service requirement or facility, or if required to prevent waste or to protect the integrity of the system or the health and safety of the public, the District may suspend, reduce or terminate service to the extent permitted by law. B. Service Termination, Suspension or Reduction; Removing or Locking Meters. Service may be reduced, suspended or terminated for failure to pay for service or in connection with a violation of this Code or applicable law. Termination, suspension or reduction of service will proceed as follows: 1. Notice Prior to Termination, Suspension or Reduction of Service. Except as provided in Paragraph A, above, or in other provisions of this Code or applicable law, not less than ten (10) days notice will be given prior to the date service will be reduced, suspended or terminated; provided that, where service is terminated due to failure to comply with the terms of an amortization agreement, under Policy 54 of this Code, five (5) days’ prior notice is required. The notice will be delivered to the affected parcel and, if the owner of record does not reside in the affected parcel, a copy of the notice will be forwarded to the owner’s address on record with the assessor’s office via any available means, such as personal delivery, certified mail return receipt requested, email, fax or overnight mail. 2.Termination for failure to pay for service. The District may discontinue any or all service due to failure to pay the whole or any part of a bill issued by the District. In connection with termination of water service, the provisions of Section 60373 of the Government Code, or any other appropriate provision of law, or as set forth in Policy 54 of this Code of Ordinance, will be followed. In connection with sewer, Section 71672 of the California Water Code or other applicable requirements will be followed. C.Reconnection or Reinstatement of Service, Unlocking or Reinstalling Meters. If service is reduced, suspended or terminated for any reason, each of the following conditions applicable to the situation must be satisfied or arrangements satisfactory to the General Manager or a designee must be made before service is reinstated: 1.Outstanding amounts for service bills, including any service charges for benefits derived from the violation, must be paid; 2.All required deposits (including any security deposits), actual damages, fines, costs, charges, and penalties must be paid; 3.Any amounts due for the removal, locking, servicing, repair or replacement of meters or other facilities required for service must be paid at the rates in effect at the time of reinstatement, as set forth on Appendix A to this Code or other schedule of fees then in effect; 4.All violations and related damages or conditions must have been corrected and/or repaired and evidence satisfactory to the District to that effect and demonstrating that it is safe to reinstate service, must have been provided to and approved by the District; and 5.If the service was in the name of a tenant, the District may require that the service account is placed in the name of the owner and that the owner assume responsibility for the service. D. Owner Responsibility for Account. In addition to owners’ obligations under subsection (A) of section 72.01 and subsection (C)(5) of Section 72.02, above, and any other remedies provided by this Code or by applicable law, Owners may be required to deliver to the District a form of acknowledgement or authorization for service to a tenant. If the property has a history of tenants who do not pay their final balances, the District reserves the right to demand that the property owner take responsibility for services to the tenant-occupied parcel. The District also reserves the right to demand that the property owner take responsibility for services to the tenant- occupied parcel if any of the following occur: (i) a tenant engages in any violation, (ii) the District has reduced, suspended or terminated any service to a tenant three (3) times within any twenty-four (24) month period, or (iii) the tenant has been delinquent five (5) or more times. The General Manager or a designee shall develop procedures to implement these requirements. Pursuant to Water Code Section 25806, the District may place a lien on the property for unpaid bills by a tenant. The District will make a good faith effort to notify an owner if a tenant-occupied account is delinquent, however, it is ultimately the owner’s responsibility to check with the District for any outstanding balances when a tenant vacates the property. For more information on property liens, see Policy 54. E.Right of Access to Customer’s Premises; Interference. If any person refuses to consent to an investigation of a possible violation or prevents or refuses to allow access to District staff or authorized representatives to any premises or facility during an investigation or in connection with any termination, reduction or suspension of service, the District may seek an injunction or a warrant, as provided in Section 71601 of the Water Code. F.Other Remedies. In addition to the actions contemplated in this Section, the District may seek other remedies authorized or required by any applicable law, including imposing an administrative fine, pursuant to Section 72.06, or pursuing other available civil or criminal remedies. 72.03 CERTAIN SPECIFIC OPERATIONAL VIOLATIONS A.Unauthorized Connections. The District shall bear no cost or liability for an unauthorized connection. In addition to other remedies, any unauthorized connection is subject to a Type II fine, pursuant to Section 72.06 depending upon the severity, duration and reoccurrence of the violation and any other factors the District may reasonably take into consideration. Further, the District may demand that the unauthorized connection be immediately disconnected. In the alternative, if the customer refuses to take immediate action, or if immediate actions are necessary as set forth in Section 72.02(A)(3), above, the District may immediately disconnect, remove, confiscate, destroy, or dispose of any parts installed with or used for the unauthorized connection, all at the expense of the customer and any other responsible party. To the extent allowed by law, the District may also terminate service to any parcel and any person that allows, uses or benefits from such unauthorized connection. B.Water Waste. No customer shall knowingly permit leaks or other wastes of water including, but not limited to, allowing runoff on any portion of his or her property, engaging in non-permitted uses of water, or failing to take corrective action after notice of any leak or water waste is given. If the District determines that water waste is occurring, the District will: 1.Notify the customer that they are in violation of the District’s Code of Ordinances. 2. Notwithstanding the foregoing, the District may, without prior notice, repair or replace any District controlled facilities at the cost of the person(s) identified as the responsible party. 3. If the water waste is due to a condition within the customer’s property or facilities, the District may (i) require the customer to repair or replace the affected facilities, immediately or within a reasonable time, depending on the situation; or (ii) if necessary, to prevent further waste, adjust, lock or remove the meter. If any repair or replacement required is not completed in a timely manner, the District may perform the repair or replacement at the cost of the customer or may terminate service without further notice. C. Meter Tampering. In addition to other remedies, meter tampering is subject to a Type II fine pursuant to Section 72.06 depending upon the severity, duration, reoccurrence of the violation, and any other factors the District may reasonably take into consideration. Additionally, meter tampering may be prosecuted as a crime under Section 498 of the California Penal Code, as set forth in Section 73.01 of this Code. D. Fire Service Violation. Fire service is subject to compliance with all provisions of this Code and the law concerning water service. Failure to comply with such provisions may result in the reduction, suspension, termination or disconnection of water service for fire protection, without any liability to District. Furthermore, illegal connections or other violations relating to fire service are subject to either a Type I or Type II fine, at the option of the District, and may be prosecuted as crimes. E. Backflow Prevention, Screens and Other Safety Devices. If service requirements include the installation, testing and maintenance of backflow prevention devices (Section 23.04 of this Code), screens or other safety operational items, in addition to, or in lieu of, other remedies provided herein, the District may apply any of the remedies under Section VI and VII of the District’s Ordinance No. 386, as amended or renumbered. Furthermore, violations relating to backflow testing may be prosecuted as set forth in Section 73.01 of this Code. Violations of backflow requirements or knowingly filing a false statement or report required by a local health officer are subject to either a Type I or Type II fine, at the option of the District, pursuant to Section 72.06, below. F. Violation Concerning Recycled Water Service. In addition to any fine, revocation, suspension or penalty imposed under Section 26 in connection with any violation of said Section, including permit suspension or revocation under Section 26.07.C, the District may (i) suspend or terminate water and or sewer service to the property, the owner and/or the operator; (ii) require payment by the owner for any damage to the District facilities, reimbursement to District of costs and expenses, or fines imposed on the District in connection with such violation; or (iii) prosecute the responsible party under any applicable provision of this Code, the Water Code or the Penal Code. Additionally, any violation concerning recycled water service is subject to either a Type I or Type II fine, at the option of the District, pursuant to Section 72.06, below. G.Violation Concerning Sewer Service. In addition to any other remedy, fine, or penalty provided by this Code or applicable law, failure to comply with any requirements of sewer service, including requirements for the preservation of public health, safety and welfare and including, but not limited to, the requirements established under Article II, Chapter 2, Sections 50 to 56.04 of this Code, as hereafter amended or as supplemented by other District Rules and Regulations for Sewer Service, the California Health and Safety Code, the California Code of Regulations, Titles 17 and 22, and Water Agency Standards. Furthermore, may be prosecuted as set forth in Section 73.01 of this Code. Additionally, any violation concerning sewer service is subject to a Type I or Type II fine, at the option of the District, pursuant to Section 72.06, below. H.Theft, Fraud, or Misappropriation. In addition to any other remedy, fine or penalty provided by this Code or applicable law, any violation involving theft, fraud or misappropriation of District water, services, or property is subject to a Type I or Type II fine, at the option of the District, pursuant to Section 72.06, below. 72.04 VIOLATIONS OF CONSERVATION OR OTHER WATER USE RESTRICTION PROVISIONS The District has established and published conservation measures set forth in Section 39 of the Code. Commencing with declared Level 2 conditions, the District may assess water shortage rates and charges previously adopted. In addition, after notice of the declared water shortage level is given as required by law, any person who uses, causes to be used, or permits the use of water in violation of such requirements (other than a person who qualifies for an applicable exemption, if any) may be assessed damages, penalties, and fines. A.Additional Provisions Concerning Use Restriction Violations. In addition to payment of actual damages, the following may apply to a violation of any water conservation or water use restriction measure: 1.A change of the account holder shall not cause the account to revert to pre-violation status unless the new account holder provides evidence that it is not related to the violator and had no responsibility for the prior account. 2.The District may reduce, suspend or terminate service to any parcel immediately and without further notice if the violation involves or results in water waste, as set for in Section 72.03(B), above. 3.Willful violations of mandatory conservation measures described in Section 39 of this Code may be enforced by terminating service to the property at which the violation occurs, as provided by Section 356 of the California Water Code. B.Prosecution for Violations of Conservation Measures. Pursuant to Section 377 and 71644 of the California Water Code, each violation of the District’s Conservation Ordinance, set forth in Section 39 of this Code, may be prosecuted as a misdemeanor, punishable by imprisonment in the County jail for no more than thirty (30) days or by a fine, as set forth in subsection (C), below. C.Assessment of Fines for Violations of Conservation or Water Use Restriction Provisions. Any responsible party who fails to comply with any conservation or use restriction measure is subject to the assessment of an administrative Type I fine, added to account, pursuant to Section 72.06, below. 72.05 VIOLATIONS INVOLVING DISTRICT REAL PROPERTY A.Removal, Disposition and Costs. The District has absolute discretion to determine the corrective action required in connection with any violation involving District real property, including requiring the owner of any unauthorized encroachment or improvement to remove it, or taking action to remove it immediately and without notice. Any improvements or uses placed within or on any District property or right of way are subject to the following: 1. Costs and Damages. All costs and damages shall be the responsibility of the customer and any other responsible party. Furthermore, the District shall not be liable for costs to repair or replace any unauthorized encroachment or improvement, or any property, improvement or thing used in connection with, supported by or attached thereto. 2.Burden of proof. The burden shall be on the user to prove to the District’s satisfaction, the authority, scope, and extent of any right to access, improve or use the District’s property. Only written evidence in the form of an agreement, deed, statute, recorded or official map or plat, governmental regulation or other official document may be used to establish such claim of right. B.Notice. In connection with any improvement or use that does not constitute a health hazard and does not interfere with the District’s use of its property, the District will give written notice of up to sixty (60) days, at the discretion of the General Manager, to cease, terminate, eliminate or remove the offending improvement, structure or use. Any written notice will be given to the responsible party or posted at the property where the trespass or encroachment occurs. If the responsible party is not the owner of any real property affected by the violation, the District will also give notice to the owner of record at the address on record with the assessor’s office via personal delivery, certified mail return receipt requested, or via overnight mail. C.Immediate Action. In connection with any improvement that constitutes a health hazard or interferes with the District’s use of any District property, the District will take any immediate action deemed necessary by the General Manager. D.Fines. In addition to all other remedies provided under this Article or under applicable law, the District may impose a fine as provided in Section 72.06. Additionally, the District may impose a fine up to either the amount specified on any sign prohibiting trespass, or a Type I or Type II fine, at the option of the District, in connection with any trespass on District property pursuant to Section 72.06, below. E.Separate Violation. A separate violation will accrue for each day after the deadline to cease, terminate, eliminate or remove the trespass or encroachment, as set forth in the notice. 72.06 ADMINISTRATIVE FINES Any administrative fines established herein shall be in the nature of civil penalties and shall be additional and cumulative to any other fines, damages or any other charges established by the District and are also separate from and cumulative to any other civil or criminal penalty, fine or remedy. In connection with each violation, the District may assess a fine up to the amount specified in the schedule of fines for the type of fine being imposed. Each day during which a violation is in effect constitutes a separate violation and violations are cumulative while the account is in the name of the original violator or any person that participated in or benefited from the violation. Except where the violation creates an immediate danger to public health or safety, the person responsible for the continuing violation will be provided a reasonable period of time to correct or otherwise remedy the violation(s) prior to the imposition of administrative fines. A.Assessment of Fines for Technical Violations of Other Code Provisions. Any person who engages in a violation of any provision of this Code is subject to the assessment of a separate administrative Type I Fine, unless subject to a more severe fine as set forth in this Code. B.Assessment of Separate Fines. Nothing in this code or the limits specified per violation shall prevent the imposition of separate fines for each separate violation committed during a single act. For example, in connection with a violation concerning sewer service that involves a trespass on any portion of the District’s real property, separate fines may be assessed for the trespass, the damage to District personal property, the damage to District real property; the damage to the sewer system and the activity resulting on all the damages. C.Types of Fines. The amount for each type of fine specified below may increase automatically to reflect any higher amount authorized by law or regulation. The District has determined to establish two types of fines based on the nature of the violation, as follows: 1.Type I Fine. Any violation that does not have the potential to endanger the health or safety of the public. The fine will not exceed the amount specified in the Section 36900(b) of the California Government Code or Appendix A for a first, second, third or each additional violation of that same ordinance or requirement within a twelve-month period. 2.Type II Fine. Any violation that has the potential to endanger public health or safety including, but not limited to, unauthorized or illegal connections, meter tampering, water theft, or knowingly filing a false statement or report required by a local health officer. The fine will not exceed the amount specified on Appendix A for each day the violation is identified or continues. D.Collection of Fines. Any fines assessed by the District are payable directly to the District and are due upon issuance or as otherwise indicated on the notice or bill and are delinquent 30 calendar days from the due date. E.Notice of Administrative Fine; Content. Notice of an administrative fine pursuant to this section will contain the following information: (i) a brief description of the violation(s); (ii) the date and location of the violation(s); (iii) a brief description of corrective action(s) required; (iv) a statement explaining that each day the violation continues constitutes a new violation; (v) in the case of violations creating an immediate danger to public health or safety, the amount of civil penalty assessed or, in all other cases, the amount of civil penalty to be assessed if the violation(s) is/are not corrected within the time provided by the notice; (vi) a statement of the procedure for payment and the consequences of failure to pay; (vii) contact information for the District employee that should be contacted to discuss the notice and to whom evidence of compliance can be provided; and (viii) a brief statement describing the responsible party’s right to request further review, pursuant to subsection (F), below. F.Option for Board Review. Persons receiving a Notice of Administrative Fine may request Board review. The request for Board consideration must be in writing, must be received by the District Secretary within ten (10) calendar days from the date of the notice and must include contact information, an explanation of the basis for the request, and any supporting documentation said person(s) wish to provide to the Board for review and consideration. District staff will review the petitioner’s request and will make a recommendation to the Board in light of its investigation. The District will provide notice of the date, time, and place for Board consideration by electronic means, facsimile or first-class mail sent to the return address indicated on the written request. G.Any Fines Assessed Pursuant to the Notice of Administrative Fines must be timely paid notwithstanding the filing of a request for Board review. At the time of Board review, the petitioner may, address the Board and respond to the charges to show good cause why the fine should not be imposed; however, the customer is not entitled to a full judicial-type hearing with cross examination, sworn testimony, etc. In accordance with the provisions of Government Code Section 53069.4, the Board’s determination shall be final and conclusive, and shall be deemed confirmed, if not appealed within 20 calendar days to the Superior Court of the County of San Diego. STAFF REPORT TYPE MEETING:Regular Board Meeting MEETING DATE: February 3, 2021 SUBMITTED BY:Susan Cruz, District Secretary W.O./G.F. NO: DIV. NO. APPROVED BY: Susan Cruz, District Secretary Jose Martinez, General Manager SUBJECT:Board of Directors 2021 Calendar of Meetings GENERAL MANAGER’S RECOMMENDATION: At the request of the Board, the attached Board of Director’s meeting calendar for 2021 is being presented for discussion. PURPOSE: This staff report is being presented to provide the Board the opportunity to review the 2021 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 2021 G:\UserData\DistSec\WINWORD\STAFRPTS\Board Meeting Calendar 02-03-21.doc AGENDA ITEM 9a Board of Directors, Workshops and Committee Meetings (Teleconference) 2021 Regular Board Meetings: Special Board or Committee Meetings (3rd Wednesday of Each Month or as Noted) January 6, 2021 February 3, 2021 March 3, 2021 April 7, 2021 May 5, 2021 June 2, 2021 July 7, 2021 August 4, 2021 September 1, 2021 October 6, 2021 November 3, 2021 December 1, 2021 January 20, 2021 February 17, 2021 March 17, 2021 April 21, 2021 May 19, 2021 June 16, 2021 July 21, 2021 August 18, 2021 September 15, 2021 October 20, 2021 November 17, 2021 December 15, 2021 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: February 3, 2021 SUBMITTED BY: Jose Martinez General Manager W.O./G.F. NO: N/A DIV. NO. N/A APPROVED BY: Jose Martinez, General Manager SUBJECT: General Manager’s Report GENERAL MANAGER •District’s Response to COVID-19 Pandemic – As a result of the COVID-19 pandemic emergency declarations and the social distancing orders have resulted in a portion of the District’s staff telecommuting, 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 as needed relating to responding to this pandemic, including but not limited to: water and wastewater services, supplies, operations, finances, and communication. The District is continuing to hold Board of Directors meetings via teleconference services which provides public access to the meetings. The District remains committed to the safety of the public and its employees who continue to provide the public with essential services. A Safe Reopening Plan and a Social Distancing and Sanitation Protocol have been implemented and are updated in accordance with county health guidelines including the recent emergency regulations discussed in this report. Staff will continue to monitor and comply with all Federal, State and Local orders and guidelines that apply or affect the District. The District continues to advocate for COVID-related funding relief to those customers adversely affected by the pandemic as a result of the restrictions imposed by Proposition 218 which restricts the ability of water suppliers to utilize rate revenue for delinquency forgiveness or relief. AGENDA ITEM 10 2 ADMINISTRATIVE SERVICES: GIS: • Drone Flight for Main Break Repairs – As part of our on-going enhancement of the asset management program, staff has been using drones to inspect and collect video inventory of District assets and facilities. To facilitate staff access, a GIS web application was created to host and present this information. To further elevate the usage of drone technology, GIS staff has been working with Utility Maintenance staff when responding to pipeline breaks such as the Paseo Ladera break, GIS staff collected drone video footage of the initial damage condition and subsequent repairs. These videos and photos will be stored in the GIS database. Along with the digital as-builts, these photos will serve as references for future pipe replacement and rehabilitation, and asset management. Human Resources: • Benefits – HR staff worked with its third-party administrator, Businessolver, to prepare the required tax forms (1095c) and the required IRS reporting (1094c). The tax forms are maintained by health plan participants to provide proof of minimum essential coverage as required by the Health Care Reform. Forms are due to be mailed to the employees by January 31, 2021, and the IRS tax filing is due by March 2, 2021. • Training and Development - The District entered into an agreement with Franklin Covey to continue with management and leadership development via an online portal. Franklin Covey is a corporate training and development industry standard vendor, and the online portal provides a wealth of information and training options. • COVID—19 Laws and Regulations – Staff continues to stay abreast of legal updates to ensure policies and procedures are kept up-to-date and relevant updates are communicated internally. • Recruitments/Promotions: o The District is recruiting for a Chief of Operations, HR Assistant I/II, Utility Worker I/II, Water Systems Operator I/II/III, Construction Inspector I/II, and Recycled Water Specialist. IT Operations: • Employee Evaluation Application - Staff is currently working with the Human Resources team on digitizing the performance appraisal 3 process. The new solution will not only capture staff’s annual evaluation, productivity ratings, and performance effectiveness, but will also feature electronic routing for greater efficiency and a new paperless process. Staff is currently performing validation testing of all the features, and the new solution will be ready before the beginning of the rating period. • Email Retention Policy - Consistent with the District’s Strategic Plan of updating policies, staff revised the email retention policy to 12 months, effective January 1, 2021. A District-wide notification was sent to all staff advising of the new change with relative information. Staff also updated the District’s Records Retention Schedule to reflect this change. Purchasing & Facilities: • State of California Green Fleet Employee Pricing Program - In the interest of expanding the marketplace for green vehicles, State and local government employees may purchase zero emission or hybrid electric vehicles for personal use through Government Fleet Managers at certain contracted dealerships throughout the State. Information on the discounts is available at “Did You Know” on the “About” page of the California Department of General Services Procurement Division website. Safety & Security: • COVID-19: o Working on the Districts’ COVID-19 Prevention Program with input from the OWD COVID Response Team. o Continue to provide information on, and in support of, the new Cal-OSHA COVID-19 Temporary Standard 3205. o Attended an informational meeting on the Cal/OSHA COVID-19 emergency regulation. Sharing three key points/information from this meeting. Please note, information came from a Cal/OSHA Inspector. 1. Documentation, communication, and recordkeeping. 2. Reminder on the 8-hour employer notification to Cal/OSHA on qualified COVID-19 cases. Reportable cases include 3 or more cases, hospitalization, and death. 3. Reference was made to AB685, effective January 1, 2021, and its requirement for employers who receive a notice of 4 potential exposure to provide written notice to other employees within one day of notice of potential exposure. o Staff continues to monitor the following for updates and the latest information: County’s activated Emergency Operations Center (for local water agencies), Cal/OSHA, County & State health departments, CDC, and County’s Water Hub as part of the Office of Emergency Services, WebEOC, CalWARN, local and neighboring water agencies. FINANCE: • Collections and Bad Debt Exposure: Below is information that shows lockable accounts and differentiates Owner accounts from Tenant accounts. While the District collects a portion of these balances, it is less likely to collect the tenant account balances that have become lockable. This balance is being monitored on a weekly basis to assess the potential bad debt exposure. Collections and Bad Debt Exposure # of Accounts $'s March 2020 (31 Days) December 2020 (31 Days) January 2021 (25 Days) FY 2020 End of Year Lockable Lockable Balances as of January 2021 (25 Days) FY 2020 Remainder FY 2021 Lockable Total Lockable Accounts Owner 129 707 674 $205,805 $44,304 $268,021 $312,325 Tenant 147 593 569 $158,471 $46,601 $245,262 $291,863 Total 276 1,300 1,243 $364,276 $90,905 $513,283 $604,188 Typical Monthly Values 200 Actual Sales $40,861,103 $47,513,313 Percent of Bad Debt Exposure 0.22% 1.08% FY2021 Waived Penalties $495,900 Lockable $'s From Recycled Accounts $ - $ - There are no lockable recycle accounts. Note: Prior to the COVID-19 pandemic the lockable balance was $48,500. 5 • Potable Water Purchases – The December potable water purchases were 2,319 acre-feet which is 69% above the budget of 1,373 acre-feet. The cumulative purchases through December were 16,420 acre-feet which is 19% above the cumulative budget of 13,764 acre-feet. The surplus volumes for the month and year are most likely due to December month and year-to-date rainfall being below the three-year average rainfall by 70% and 62%, respectively. In addition, the FY 2021 potable water sales budget was cut by 12% from the projected FY 2021 actuals as a response to COVID-19 and the expected economic impacts. It is too early to say if the expected COVID-19 related reductions will or will not happen the rest of the year. • Recycled Water Purchases – The December recycled water purchases from the City of San Diego and production at the District’s treatment facility were 259 acre-feet which is 94% above the budget of 134 acre-feet. In terms of historic December recycled purchases and production, the actual volume for December exceeded the three- year average December volume by 75%. The cumulative production and purchases through December were 2,533 acre-feet which is 25% above the cumulative budget of 2,032 acre-feet. The surplus volumes for the month and year are most likely due to December month and year- to-date rainfall being below the three-year average rainfall by 70% and 62%, respectively. In addition, the FY 2021 recycled water sales budget was cut by 15% from the projected FY 2021 actuals as a response to COVID-19 and the expected economic impacts. It is too early to say if the expected COVID-19 related reductions will or will not happen the rest of the year. • Rate Testing – Staff has successfully implemented the January 1, 2021 water and sewer rates. Bills with the new rates for 2021 began being mailed to customers on January 8, 2021. As of January 20th, customer service has received two calls from customers about the new rates. One was from a water customer whose usage had also increased which led to an overall $5 increase in their bill and another from a sewer customer concerned about an increase in their sewer bill which was related to a higher winter average than the previous year. Staff continues to review customer billings to ensure the accuracy of rates and rate structures in the live environment. • FY 2022 Budget – Staff is continuing its efforts to prepare the FY 2022 budget process. The tentative budget calendar for the Board is consistent with the FY 2021 budget with the Economist report being presented at the April Board meeting, followed by a Board budget workshop in late April or early May, and a final Budget presentation at the June Board meeting. 6 • FY 2020 State Controllers Report – The State Controllers report was filed by February 1, 2021. Staff provided all the supporting worksheets to our external audit firm, Teaman, Ramirez & Smith, Inc. (TRS). TRS prepared the draft report for our staff’s review and filing. • FEMA Reimbursements (COVID-19) – The District’s grant submittal passed the first round of FEMA’s review during the week of January 10th. The first review was an iterative process where FEMA scrutinized our submittal and requested additional information with the intention of making the final FEMA review efficient. The incident period included expenses incurred between February and September 15, 2020. CalOES advised that it may take up to six months to work through the reimbursement process. Due to a change in FEMA policy the District is not eligible for expense reimbursements incurred subsequent to September 15th. • Debt Management Policy – Staff received a legal opinion from our Attorney regarding internal lending and borrowing between funds. Staff will update the proposed Debt Policy to reflect the input from our Attorney. Staff believes the proposed changes will be brought to the February F&A Committee for consideration. • COVID-19 Business Interruption Claim – Staff opened a Business Interruption claim with SDRMA under the communicable disease clause. As of January 14th, the claim is still moving forward and being processed. SDRMA has requested 36 continuous months of Profit and Loss Statements which is currently being compiled by staff. • Cell Site Leases (GASB 87) – Under a new accounting rule, GASB 87, governmental agencies are required to now amortize all future payments of a lease to present value and record those as an asset. Due to COVID-19, the implementation date was moved by GASB to FY22. In order to complete the project, Finance is working with Public Services to update all 32 cell site records to reflect the current lease terms. Some of the challenges will be the annual revaluation of the lease asset valuation that use CPI as an annual escalation factor. This project will be on-going through July 2021. Financial Reporting: • The financial reporting for December 31, 2020 is as follows: o For the sixth month ending December 31, 2020, there are total revenues of $61,261,539 and total expenses of $54,355,556. The revenues exceeded expenses by $6,905,983. 7 • The financial reporting for investments for December 31, 2020 is as follows: o The market value shown in the Portfolio Summary and in the Investment Portfolio Details as of December 31, 2020 total $79,582,275 with an average yield to maturity of 0.779%. The total earnings year-to-date are $332,011. ENGINEERING AND WATER SYSTEM OPERATIONS: Engineering: • 870-2 Pump Station Replacement: This project consists of a new Pump Station to replace the existing Low Head 571-1 and High Head 870-1 Pump Stations. The project also includes the replacement of the existing liner and cover for the 571-1 Reservoir (36.7 MG). On June 29, 2020, Pacific Hydrotech, the Pump Station’s contractor, achieved substantial completion and began seven-day operational testing. Currently, the Pump Station remains in the testing phase and remains offline pending mechanical repairs. The Pump Station has four (4) pumps, two (2) electric motor driven and two (2) external gas engine driven motor/pump combinations. There are on- going mechanical repairs that are expected to be complete in February 2021, at which time, the 7-day testing will resume and be completed for project acceptance. Unanticipated District costs associated with the continuing repairs are being tracked for reimbursement from the contract retention. Forensic reports for the mechanical issues are under development and a consultant with pump expertise has been hired to analyze and document the specific mechanical issues. The project is within budget. (P2083 & P2562) • Temporary Lower Otay Pump Station Redundancy: This project will add a second pump to the District’s existing Temporary Lower Otay Pump Station (TLOPS) to provide redundancy. The District’s contractor, Tharsos, moved the District’s pre-purchased trailer, which had been stored in the Operations employee parking lot, to the project site on May 18, 2020. Tharsos set the trailer and installed staircases and platforms around the trailer in May 2020. Installation of aboveground pipe was completed in December 2020. Construction of below grade piping commenced mid-December 2020 and is anticipated to be completed early February 2021. Tharsos’s construction contract also includes mechanical, electrical, and instrumentation & control. Project completion is expected in March 2021. The project is within budget. COVID-19 IMPACTS: The contractor is alleging that the project has experienced delays associated with pipe fabrication. Staff is waiting for proof of the impacts and continues to collect liquidated damages for the 200+ days the contractor is past the contract expiration date. (P2619) • Portable Trailer Mounted VFD Pumps: This project consists of procurement of a portable trailer mounted hydropneumatic pump 8 station designed for deployment at up to seven (7) existing sites including four (4) hydropneumatic pump stations and three (3) small pressure zones each fed by a single gravity reservoir. District staff have been working with the trailer vendor (Cortech) and Cortech’s subcontractor (PremierFlow) to resolve manufacturing issues since the trailer was delivered to the District headquarters on June 27, 2020. PremierFlow’s subcontractor (Henry’s Trailers located in El Cajon) completed several repairs October 12 through November 13. The trailer was partially deployed at the District’s existing 1200-1 Pump Station site late November in support of the 1200-1 Reservoir Interior/Exterior Coating Project (P2533). Electrical wiring repairs were completed by the District’s in-house electrician staff during the month of December. The District collected all the costs and is negotiating with the vendor for reimbursement. PremierFlow’s system integrator subcontractor (TechKnowsion) commenced system integration and testing the first week of January 2021. This project is within budget. COVID-19 IMPACTS: The project has experienced delays associated with pump skid and trailer fabrication, that could impact the rehabilitation of the 1200-1 Reservoir. (P2640) • Otay Mesa Pipeline Cathodic Protection Improvements: This project includes repairs to existing cathodic protection systems, such as anode replacement and cathodic test station repairs located in the Otay Mesa Area. The construction contract was awarded at the August Board Meeting. Notice to proceed was issued September 8, 2020 and the Pre-Construction Meeting was held on September 11, 2020. The District’s contractor, Kay Construction, commenced field work mid-September 2020 and project substantial completion was achieved on December 11, 2020. Project closeout is underway. This project is within budget. (P2648) • 14-Inch Force Main Air-Vac Replacements Project: This project includes replacement of nineteen (19) existing combination air- vacuum valve assemblies previously replaced in 2006-2008, which are reaching the end of their useful life. The construction contract was awarded at the August Board Meeting. The District’s contractor, Burtech, mobilized to the site early November 2020. District pre-purchased air-vacuum valves were delivered to the District on December 1, 2020. Project substantial completion was achieved on December 18, 2020. Project closeout is underway. This project is within budget. (R2156) • Vista Diego Hydropneumatic Pump Station Replacement: 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. Award of a professional engineering services agreement to Murraysmith was presented at the September Board Meeting and the agreement was executed on October 9, 2020. A site visit with Murraysmith and 9 topographical/boundary survey field work was completed during the month of December 2020. District staff have been working together with Murraysmith to develop and select a replacement concept for preliminary design. Murraysmith is anticipated to deliver a draft preliminary design report February 2021. This project is within budget. (P2639) • 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. Design was completed using as- needed electrical design services and in-house engineering and drafting personnel. Award of the contract to Cora Constructors was authorized at the November 2020 Board meeting. Notice to proceed was issued on January 8, 2021. Pre-construction was held on January 20, 2021. This project is within budget. (P2174) • RWCWRF Disinfection System Improvements: Currently, the Ralph W. Chapman Water Reclamation Facility uses the 14-inch force main to meet the contact time (CT) for the disinfection of recycled water from the plant. This makes the force main part of the treatment process and requires sampling of the plant effluent to be performed at the Day Use area over a 20-minute drive time away. An update of a study to perform disinfection on-site, completed in 2015, has been completed by Arcadis U.S., Inc., to compare the newest generation of ultraviolet (UV) methods, that are significantly more energy efficient, to constructing a chlorine contact basin. The final report was submitted in November 2020 and is being reviewed and discussed to determine direction of the project including reaching out to other facilities where the UV process was installed to have a better understanding of the system pros and cons. District staff visited the City of San Diego’s South Bay WRP that is using the new UV system being proposed to better understand the system pros and cons of how it is operated and maintained. Staff will verify with the Regional Board that the permit will not need to be amended if the District boosts the chlorine residual of the product water after the UV system. The District uses chlorine gas today and that does not increase the TDS in the product water; however, switching to chloramine to boost the residual will increase the TDS. Staff has started developing the scope of work for the consultant selection for design. (R2117) • 850-1 & 1200-1 Reservoirs Interior/Exterior Coating and Upgrades: This project consists of removing and replacing the interior and exterior coatings of the 850-1 (1.15 MG) and the 1200-1 (1.0 MG) Reservoirs, along with providing structural upgrades, to ensure the tanks comply with both state and federal OSHA standards as well as the American Water Works Association and the County Health Department standards. Capital Industrial Coatings (Capital) was 10 awarded the construction contract at the September Board Meeting. The Notice to Proceed was issued on November 2, 2020. Capital completed the structural contract work on the 850-1 Reservoir. Some additional repair work was needed on the roof plates to prevent water ponding which causes excessive corrosion. Coating removal began mid-January. The project is within budget. (P2543 & P2533) • Recycled Water Storage Tank Coating: This project consists of removing and replacing the interior and exterior coatings of the Recycled Water Storage Tank (0.43 MG) and minor structural repairs. The tank was built in 1979 and is located at the R.W. Chapman Water Recycling Facility. United Field Services Corp. (Unified) was awarded a construction contract at the September Board Meeting. The Notice to Proceed was issued on November 2, 2020. Unified completed the structural work on November 25, 2020, and after the November holiday, erected containment in preparation for coating removal. Unified removed the coating mid-December. After the coating was removed, some pitting in the shell was found. Repairs to the shell were made in early January, and coating application began mid-January. The project is within budget. (R2120) • North American Development Bank Request for Information: The North American Development Bank (NADB) assists border communities and provides grant support to help project sponsors strengthen their financial performance and ensure the long-term sustainability of their infrastructure through studies related to project planning and design, as well as for capacity-building measures aimed at achieving effective and efficient operation of public services. The NADB recently contacted the District to get assistance in developing a scope of work to retain a consultant to prepare an Integrated Resource Plan (IRP). District staff provided a sample scope of work and a copy of the District’s latest IRP. For an agency seeking assistance, an IRP can identify available resources, establish water demand targets, develop strategies and approaches, and establish target cost estimates for the development of water resources, including conservation, local groundwater supplies, recycled water supplies, purchased supplies through water transfers, Colorado River Aqueduct supplies, local water treatment plant capacity acquisitions, desalination opportunities, etc. 11 • FY 2021 Sewage Flows to Metro vs Planned Capacity: • Summary of Budgeted and Sold Meters and EDUs for Fiscal Year 2021 up through 12/30/2020: Water System Operations (reporting for December): • On Wednesday, December 2nd, there was a power outage due to high winds that affected ID 2, 9 and 7 for 18 hours. District generators ran during this time, APCD approved. Full power was later restored on Thursday, December 3rd for ID 2 and 9 and ID 7 on Friday, December 4th. • On Thursday, December 3rd, staff performed a mock shutdown on a 24- inch main on Otay Mesa Road in Otay Mesa for future tie-ins for the Amazon warehouse that is under construction. • On Monday, December 7th, Potable Divers company inspected and cleaned 1004-2, 1485-1, 1485-2 Steel Reservoirs. • On Wednesday, December 9th, Potable Divers company inspected and cleaned the 803-4 Steel Reservoir. • On Saturday, December 19th, there was an unplanned power outage caused by damaged SDG&E equipment, that affected 450/680 Recycled Date Meters (Budgeted) Meters Sold (Actual) EDUs (Budgeted) EDUs Sold (Actual) Total $ Collected (Budgeted) Total $ Collected (Actual) Dec 2020 23.7 7 37.9 24 $256,459 $245,624 Totals FY 2021 142.5 140 227.5 292.5 $1,538,750 $2,579,213 12 Pump Station and 458 Reservoirs. The generators ran during the outage, approved by APCD. • On Monday, December 21st, staff performed an emergency shutdown on a 12-inch main break at 13951 Proctor Valley Road in Jamul caused by corrosion on a pipe joint. The shutdown lasted for 12 hours and 46 minutes affecting 33 meters. Three water trailers were provided for those affected. • On Tuesday, December 22nd, staff performed an emergency shutdown at 1962 Pebblebrook Place in Chula Vista due to a one-inch air-vac saddle corp leaking. The shutdown lasted two hours and 44 minutes affecting eight meters. A water trailer was provided for those affected. Inter-agency Assistance: • On Tuesday, December 1st, Silas Hess, Utility Worker II, assisted Helix Water District with vactor truck #212 to excavate and repair a one-inch copper service at 9550 Campo Road, Spring Valley. Purchases and Change Orders: • The following table summarizes purchases and Change Orders issued during the period from December 18 through January 8, 2021, that were within staff’s signatory authority: Date Action Amount Contractor/ Consultant Project 12/18/2020 P.O. $4,400,000.00 Special District Risk Management Authority (SDRMA) Employee Medical Benefits (CY2021) 12/30/2020 P.O. $4,541.40 KNOWB4, Inc. Annual Cyber Prevention Training Software License 01/04/2021 C.O. ($10,375.00) Kay Construction Company Otay Mesa Pipeline CP Improvements 01/05/2021 P.O. $4,200.00 Anthem EAP Employee Assistance Program CY2021) 01/05/2021 P.O. $14,910.92 Dell Marketing, LP Data Center Server Hardware 01/05/2021 P.O. $9,680.00 Nightcoders Website Support Services 01/06/2021 P.O. $9,776.00 Nintex USA, LLC Annual Form Automation Software License 01/06/2021 P.O. $2,324.38 Watchlight 978-1 Reservoir/ 1200-1 Pump Station (P2533) 13 Water Conservation and Sales: • Water Conservation – Due to an unusually hot and dry month, December 2020 usage was 11% higher than December 2013 usage. Since December 2019, customers have saved an average of 9% over 2013 levels. • Potable Water Purchases – The December potable water purchases were 2,319 acre-feet which is 69% above the budget of 1,373 acre-feet. The cumulative purchases through December were 16,420 acre-feet which is 19% above the cumulative budget of 13,764 acre-feet. The surplus volumes for the month and year are most likely due to December month and year-to-date rainfall being below the three-year average rainfall by 70% and 62%, respectively. In addition, the FY 2021 potable water sales budget was cut by 12% from the projected FY 2021 actuals as a response to COVID-19 and the expected economic 01/07/2021 P.O. $11,594.52 Ferguson Waterworks Potable Water Pressure Vessel Program (P2663) 01/08/2021 P.O. $552.55 Southland Pipe Corp. Potable Water Pressure Vessel Program (P2663) 01/11/2021 P.O. $101,348.44 Association of CA Water Agencies FY 2021 Workers’ Comp Program (Quarter 2) 01/12/2021 P.O. $16,000.000 Preferred Benefit Insurance Administrators Dental Benefits Administration (CY2021) 14 impacts. It is too early to say if the expected COVID related reductions will or will not happen the rest of the year. • Recycled Water Purchases – The December recycled water purchases from the City of San Diego and production at the District’s treatment facility were 259 acre-feet which is 94% above the budget of 134 acre-feet. In terms of historic December recycled purchases and production, the actual volume for December exceeded the three- year average December volume by 75%. The cumulative production and purchases through December were 2,533 acre-feet which is 25% above the cumulative budget of 2,032 acre-feet. The surplus volumes for the month and year are most likely due to December month and year- to-date rainfall being below the three-year average rainfall by 70% and 62%, respectively. In addition, the FY 2021 recycled water sales budget was cut by 15% from the projected FY 2021 actuals as a response to COVID-19 and the expected economic impacts. It is too early to say if the expected COVID related reductions will or will not happen the rest of the year. 15 Potable, Recycled, and Sewer (Reporting up to the month of December): • Total number of potable water meters: 51,211. • Total number of sewer connections: 4,740. • Recycled water consumption for the month of December: o Total consumption: 280.30 acre-feet or 91,330,800 gallons. o Average daily consumption: 2,946,154 gallons per day. o Total cumulative recycled water consumption since December 1, 2019: 2,559 acre-feet. o Total number of recycled water meters: 743. • Wastewater flows for the month of December: o Total basin flow: 1,603,290 gallons per day. ▪ This is a decrease of 5.4 percent from December 2019. o Spring Valley Sanitation District flow to Metro: 531,891 gallons per day. o Total Otay flow: 1,071,387 gallons per day. o Flow processed at the Ralph W. Chapman Water Recycling Facility: 0 gallons per day. o Flow to Metro from Otay Water District: 1,071,387 gallons per day. o By the end of December there were 6,752 wastewater EDUs. Exhibit A Annual YTD YTD YTD Budget Actual Budget Variance Var % REVENUES: 4110 Potable Water Sales 46,419,000$ 32,374,870$ 26,276,000$ 6,098,870$ 23.2% 31-4118 Recycled Water Sales 8,411,000 6,738,258 5,355,200 1,383,058 25.8% 4140 Potable Energy Charges 2,034,000 1,486,033 1,247,000 239,033 19.2% 4120 Potable System Charges 16,805,000 8,326,712 8,316,000 10,712 0.1% 4150 Potable MWD & CWA Fixed Charges 12,869,000 6,276,655 6,276,000 655 0.0% 4310 Potable Penalties and Other Fees 622,000 16,938 207,300 (190,362) (91.8%) Total Water Sales 87,160,000 55,219,466 47,677,500 7,541,966 15.8% 4210 Sewer Charges 2,870,000 1,366,534 1,366,800 (266) (0.0%) 4133 Meter Fees 123,000 69,807 61,200 8,607 14.1% 4136 Capacity Fee Revenues 1,869,000 1,002,651 984,800 17,851 1.8% 4414 Non-Operating Revenues 2,177,000 1,468,686 1,069,800 398,886 37.3% 4621 Tax Revenues 4,155,000 2,019,026 1,736,000 283,026 16.3% 4512 Interest 179,000 115,369 99,400 15,969 16.1% Total Revenues 98,533,000$ 61,261,539$ 52,995,500$ 8,266,039$ 15.6% EXPENSES: 5511 Potable Water Purchases 33,631,000$ 22,002,341$ 18,268,900 (3,733,441)$ (20.4%) 5515 Recycled Water Purchases 4,058,000 3,089,800 3,089,800 - 0.0% 5523 CWA-Infrastructure Access Charge 2,839,000 1,315,998 1,315,800 (198) (0.0%) 5521 CWA-Customer Service Charge 1,703,000 850,993 851,400 407 0.0% 5524 CWA-Reliability Charge 2,711,000 1,321,250 1,321,200 (50) (0.0%) 5522 CWA-Emergency Storage Charge 4,608,000 2,348,620 2,348,400 (220) (0.0%) 5531 MWD-Capacity Res Charge 628,000 293,286 293,400 114 0.0% 5532 MWD-Readiness to Serve Charge 720,000 358,019 359,964 1,945 0.5% Subtotal Water Purchases 50,898,000 31,580,307 27,848,864 (3,731,443) (13.4%) 5411 Power Charges 2,898,000 1,660,573 1,437,000 (223,573) (15.6%) Payroll & Related Costs 21,860,000 10,416,042 10,601,600 185,558 1.8% Material & Maintenance 3,720,000 1,625,629 1,732,950 107,321 6.2% Administrative Expenses 6,280,000 2,636,055 2,778,575 142,520 5.1% 5251 Legal Fees 707,000 351,950 353,500 1,550 0.4% Expansion Reserve 150,000 75,000 75,000 - 0.0% Replacement Reserve 9,676,000 4,838,000 4,838,000 - 0.0% OPEB Trust 1,100,000 550,000 550,000 - 0.0% General Fund Reserve 259,000 129,500 129,500 - 0.0% Total Expenses 98,533,000$ 54,355,556$ 50,837,489$ (3,518,067)$ (6.9%) EXCESS REVENUES(EXPENSE) -$ 6,905,983$ 2,158,011$ 4,747,972$ OTAY WATER DISTRICT COMPARATIVE BUDGET SUMMARY FOR THE SIX MONTHS ENDED DECEMBER 31, 2020 F:/MORPT/FS2021-1220.xlsx 1/20/2021 1:01 PM COMPARATIVE BUDGET SUMMARY NET REVENUES AND EXPENSES FOR THE SIX MONTHS ENDED DECEMBER 31, 2020 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 $5,500,000 $6,000,000 $6,500,000 $7,000,000 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN YTD Actual Net Revenues YTD Budget Net Revenues YTD Variance in Net Revenues The year-to-date actual net revenues through December show a positive variance of $4,747,972. $1,905,712 2.41% $73,673,799 92.96% $3,672,326 4.63% Otay Water District Investment Portfolio: 12/31/2020 Banks (Passbook/Checking/CD)Pools (LAIF & County)Agencies & Corporate Notes Total Cash and Investments: $79,251,837 (Book Value) July FY20 Aug FY20 Sep FY20 1st Qtr FY20 Oct FY20 Nov FY20 Dec FY20 2nd Qtr FY20 Jan FY20 Feb FY20 Mar FY20 3rd Qtr FY20 Apr FY20 May FY20 Jun FY20 4th Qtr FY20 Jul FY21 Aug FY21 Sep FY21 1st Qtr FY21 Oct FY21 Nov FY21 Dec FY21 2nd Qtr FY21 LAIF 2.38 2.34 2.28 2.33 2.19 2.10 2.04 2.11 1.97 1.91 1.79 1.89 1.65 1.36 1.22 1.41 0.92 0.78 0.69 0.80 0.62 0.58 0.54 0.58 Otay 1.91 1.90 1.93 1.92 1.94 1.97 1.92 1.95 1.90 1.86 1.71 1.83 1.51 1.31 1.19 1.34 0.95 0.93 0.82 0.91 0.81 0.87 0.77 0.82 Difference -0.47 -0.44 -0.35 -0.42 -0.25 -0.13 -0.12 -0.16 -0.07 -0.05 -0.08 -0.06 -0.14 -0.05 -0.03 -0.07 0.03 0.15 0.14 0.11 0.19 0.29 0.23 0.24 -1.00 -0.50 0.00 0.50 1.00 1.50 2.00 2.50 3.00 Re t u r n o n I n v e s t m e n t s Month Performance Measure FY-21 Return on Investment LAIF Otay Difference Target: Meet or Exceed 100% of LAIF OTAY WATER DISTRICT INVESTMENT PORTFOLIO REVIEW December 31, 2020 INVESTMENT OVERVIEW & MARKET STATUS: At the Federal Reserve Board’s regular scheduled meeting on March 15, 2020, the Committee lowered the target range for the federal funds rate from 1.50-1.750% to 0-0.25% in light of the effects of the coronavirus which harmed communities and disrupted economic activity in many countries, including the United States. There have been no further changes made to the federal funds rate at the most recent meeting which was held on December 16, 2020. The Committee anticipates maintaining the target range of 0-0.25% until labor market conditions have reached levels consistent with the Committee’s assessment of maximum employment and inflation has risen to 2 percent and is on track to moderately exceed 2 percent for some time. The Committee will continue to observe the effects of incoming information for 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 the month of December 2020 was .77%, which was ten basis points lower than the previous month. LAIF return on deposits was four basis points lower than the previous month, reaching an average effective yield of .54% for the month of December 2020. 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: December 31, 2020 Investment State Limit Otay Limit Otay Actual 8.01: Treasury Securities 100% 100% 0 8.02: Local Agency Investment Fund (Operations) $75 Million $65 Million $29.73 Million 8.02: Local Agency Investment Fund (Bonds) 100% 100% $ 2.71 Million 8.03: Federal Agency Issues 100% 100% $ 3.67 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 8.08: San Diego County Pool 100% 100% 52.03% 12.0: Maximum Single Financial Institution 100% 50% 2.40% Month End Portfolio Management December 31, 2020 Portfolio Summary % of Portfolio Book ValueInvestmentsMarket Value Par Value Days toMaturityTerm YTM360 Equiv.YTM365 Equiv. Federal Agency Issues - Coupon 3,672,326.37 7364.75 1.4542523,705,516.503,650,000.00 1.474 BOND PROCEEDS (LAIF)2,714,390.98 13.51 0.53312,720,556.232,714,390.98 0.540 Local Agency Investment Fund (LAIF)29,727,968.51 138.44 0.533129,795,490.1829,727,968.51 0.540 San Diego County Pool 41,231,438.89 153.31 0.893141,455,000.0041,231,438.89 0.905 77,346,124.75 100.00%Investments 77,676,562.9177,323,798.38 36 13 0.768 0.779 Cash (not included in yield calculations)Passbook/Checking 1,905,712.18 1 1.04811,905,712.181,905,712.18 1.062 79,251,836.93Total Cash and Investments 79,582,275.0979,229,510.56 36 13 0.768 0.779 Current Year December 31 50,653.69 Fiscal Year To Date 332,010.60 Average Daily Balance Effective Rate of Return 77,146,738.72 75,756,543.91 0.87%0.77% 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 06, 2020. 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: 01/20/2021 14:08 Reporting period 12/01/2020-12/31/2020 Run Date: 01/20/2021 - 14:08 PM (PRF_PM1) 7.3.0 Report Ver. 7.3.5 1/21/2021 YTM360 Page 1 Par Value Book Value MaturityDateStatedRateMarket Value December 31, 2020 Portfolio Details - Investments AverageBalanceIssuer Portfolio Management Month End Days toMaturityS&PCUSIPInvestment #PurchaseDate Federal Agency Issues - Coupon 1.454Federal Home Loan Bank2384 1,005,000.00 1,011,147.40 09/10/20212.37509/05/2019 1,020,286.05 AA313378JP7 252 1.454Federal Home Loan Bank2385 2,645,000.00 2,661,178.97 09/10/20212.37509/05/2019 2,685,230.45 AA313378JP7 252 3,672,326.373,705,516.503,650,000.003,673,584.56Subtotal and Average 1.454 252 BOND PROCEEDS (LAIF) 0.533STATE OF CALIFORNIA9015 2,714,390.98 2,714,390.98 0.5402,720,556.23LAIF 2018 1 2,714,390.982,720,556.232,714,390.982,719,971.63Subtotal and Average 0.533 1 Local Agency Investment Fund (LAIF) 0.533STATE OF CALIFORNIA9001 29,727,968.51 29,727,968.51 0.54029,795,490.18LAIF 1 29,727,968.5129,795,490.1829,727,968.5126,753,774.96Subtotal and Average 0.533 1 San Diego County Pool 0.893San Diego County9007 41,231,438.89 41,231,438.89 0.90541,455,000.00SD COUNTY POOL 1 41,231,438.8941,455,000.0041,231,438.8941,231,438.89Subtotal and Average 0.893 1 77,146,738.72 77,323,798.38 0.768 1377,676,562.91 77,346,124.75Total and Average Portfolio OTAY NL! APData Updated: SET_ME8: 01/20/2021 14:08 Run Date: 01/20/2021 - 14:08 PM (PRF_PM2) 7.3.0 Report Ver. 7.3.5 YTM360 Page 2 Par Value Book Value StatedRateMarket Value December 31, 2020 Portfolio Details - Cash AverageBalanceIssuer Portfolio Management Month End Days toMaturityS&PCUSIPInvestment #PurchaseDate Union Bank 3.422STATE OF CALIFORNIA9002 404,351.96 404,351.96 3.470404,351.96UNION MONEY 1 0.000STATE OF CALIFORNIA9003 2,950.00 2,950.002,950.00PETTY CASH 1 0.444STATE OF CALIFORNIA9004 1,370,432.69 1,370,432.69 0.4501,370,432.69UNION OPERATING 1 0.000STATE OF CALIFORNIA9005 29,545.43 29,545.4307/01/2020 29,545.43PAYROLL 1 0.108STATE OF CALIFORNIA9010 12,621.93 12,621.93 0.11007/01/2020 12,621.93RESERVE-10 COPS 1 0.108STATE OF CALIFORNIA9011 31,419.15 31,419.15 0.11007/01/2020 31,419.15RESERVE-10 BABS 1 0.000STATE OF CALIFORNIA9014 54,391.02 54,391.0207/01/2020 54,391.02UBNA-FLEX ACCT 1 0.00 77,146,738.72 79,229,510.56 0.768 13 1Average Balance 79,582,275.09 79,251,836.93Total Cash and Investments Portfolio OTAY NL! APData Updated: SET_ME8: 01/20/2021 14:08 Run Date: 01/20/2021 - 14:08 PM (PRF_PM2) 7.3.0 Month End Activity Report Sorted By Issuer December 1, 2020 - December 31, 2020 Current Rate Transaction Date BalanceBeginning Balance Ending Par Value Percent of Portfolio Par Value CUSIP Investment #Issuer Purchases orDeposits Redemptions orWithdrawals Issuer: STATE OF CALIFORNIA BOND PROCEEDS (LAIF) STATE OF CALIFORNIA9015 0.000.540 173,000.00LAIF 2018 173,000.002,887,390.98 2,714,390.98Subtotal and Balance 0.00 Union Bank STATE OF CALIFORNIA9002 3.473.470 0.00UNION MONEY STATE OF CALIFORNIA9004 425,837.480.450 922,298.89UNION OPERATING STATE OF CALIFORNIA9005 0.00 10.01PAYROLL STATE OF CALIFORNIA9010 0.300.110 0.00RESERVE-10 COPS STATE OF CALIFORNIA9011 0.790.110 0.00RESERVE-10 BABS STATE OF CALIFORNIA9014 50,000.00 8,598.44UBNA-FLEX ACCT 930,907.342,360,777.48 1,905,712.18Subtotal and Balance 475,842.04 Local Agency Investment Fund (LAIF) STATE OF CALIFORNIA9001 7,800,000.000.540 2,800,000.00LAIF 2,800,000.0024,727,968.51 29,727,968.51Subtotal and Balance 7,800,000.00 8,275,842.04 3,903,907.3429,976,136.97 34,348,071.6743.353%Issuer Subtotal Issuer: Federal Home Loan Bank Federal Agency Issues - Coupon 3,650,000.00 3,650,000.00Subtotal and Balance 0.00 0.003,650,000.00 3,650,000.004.607%Issuer Subtotal Issuer: San Diego County San Diego County Pool 41,231,438.89 41,231,438.89Subtotal and Balance 0.00 0.0041,231,438.89 41,231,438.8952.041%Issuer Subtotal Portfolio OTAY NL! APData Updated: SET_ME8: 01/20/2021 14:08 Run Date: 01/20/2021 - 14:08 DA (PRF_DA) 7.2.0 Report Ver. 7.3.5 Current Rate Transaction Date BalanceBeginning Balance Ending Par Value Page 2 Percent of Portfolio Par Value December 1, 2020 - December 31, 2020 Activity Report Month End CUSIP Investment #Issuer Purchases orDeposits Redemptions orWithdrawals 74,857,575.86 79,229,510.56Total3,903,907.348,275,842.04100.000% Portfolio OTAY NL! APData Updated: SET_ME8: 01/20/2021 14:08 Run Date: 01/20/2021 - 14:08 DA (PRF_DA) 7.2.0 Report Ver. 7.3.5 Month End Duration Report Sorted by Investment Type - Investment Type Through 12/31/2020 Investment #Security ID Issuer Investment Class Book Value Par Value Market Value Current Rate YTM Current Yield Maturity/ Call Date DurationModified360Fund Federal Home Loan Bank238499 1,005,000.00 1,020,286.05313378JP7 0.174 09/10/2021 0.6841,011,147.40 1.454Fair2.375000 Federal Home Loan Bank238599 2,645,000.00 2,685,230.45313378JP7 0.174 09/10/2021 0.6842,661,178.97 1.454Fair2.375000 STATE OF CALIFORNIA901599 2,714,390.98 2,720,556.23LAIF 2018 0.540 0.0002,714,390.98 0.533Fair.5400000 STATE OF CALIFORNIA900199 29,727,968.51 29,795,490.18LAIF 0.540 0.00029,727,968.51 0.533Fair.5400000 San Diego County900799 41,231,438.89 41,455,000.00SD COUNTY 0.905 0.00041,231,438.89 0.893Fair.9050000 0.717 0.03277,346,124.75 77,323,798.38 77,676,562.91Report Total Portfolio OTAY NL! APPage 1Data Updated: SET_ME8: 01/20/2021 14:08 Run Date: 01/20/2021 - 14:08 DU (PRF_DU) 7.1.1 Report Ver. 7.3.5 Month End GASB 31 Compliance Detail Sorted by Fund - Fund December 1, 2020 - December 31, 2020 Investment #Maturity Date BeginningInvested Value Purchaseof Principal InvestmentClassFundCUSIP Adjustment in Value EndingInvested ValueAdditionto Principal Redemptionof Principal AmortizationAdjustment Change inMarket Value Fund: Treasury Fund 2384 1,022,577.45Fair Value 09/10/2021 -2,291.4099 1,020,286.05313378JP70.00 0.00 0.00 0.00 2385 2,691,261.05Fair Value 09/10/2021 -6,030.6099 2,685,230.45313378JP70.00 0.00 0.00 0.00 9002 404,348.49Amortized 0.0099 404,351.96UNION MONEY 0.00 3.47 0.00 0.00 9003 2,950.00Amortized 0.0099 2,950.00PETTY CASH 0.00 0.00 0.00 0.00 9015 2,899,271.25Fair Value -5,715.0299 2,720,556.23LAIF 2018 0.00 0.00 173,000.00 0.00 9004 1,866,894.10Amortized 0.0099 1,370,432.69UNION OPERATING 0.00 425,837.48 922,298.89 0.00 9001 24,829,712.58Fair Value -34,222.4099 29,795,490.18LAIF0.00 7,800,000.00 2,800,000.00 0.00 9010 12,621.63Amortized 0.0099 12,621.93RESERVE-10 COPS 0.00 0.30 0.00 0.00 9011 31,418.36Amortized 0.0099 31,419.15RESERVE-10 BABS 0.00 0.79 0.00 0.00 9014 12,989.46Amortized 0.0099 54,391.02UBNA-FLEX ACCT 0.00 50,000.00 8,598.44 0.00 9005 29,555.44Amortized 0.0099 29,545.43PAYROLL0.00 0.00 10.01 0.00 9007 41,454,000.00Fair Value 1,000.0099 41,455,000.00SD COUNTY POOL 0.00 0.00 0.00 0.00 75,257,599.81Subtotal -47,259.42 79,582,275.090.00 8,275,842.04 3,903,907.34 0.00 75,257,599.81Total 79,582,275.09-47,259.420.00 8,275,842.04 3,903,907.34 0.00 Portfolio OTAY NL! APData Updated: SET_ME8: 01/20/2021 14:08 Run Date: 01/20/2021 - 14:08 GD (PRF_GD) 7.1.1 Report Ver. 7.3.5 Month End Interest Earnings Sorted by Fund - Fund December 1, 2020 - December 31, 2020 Yield on Beginning Book Value Maturity Date Current Rate Ending Par Value EndingSecurityTypeFundBook ValueBeginningBook Value Adjusted Interest Earnings AccretionAmortization/EarningsAdjusted InterestAnnualized YieldCUSIPInvestment #Interest Earned Fund: Treasury Fund 1,011,147.4023841,005,000.00 2.375FAC09/10/2021 1,989.07 -740.65 1,248.421.453991,011,888.05313378JP7 2,661,178.9723852,645,000.00 2.375FAC09/10/2021 5,234.90 -1,949.28 3,285.621.453992,663,128.25313378JP7 404,351.969002404,351.96 3.470PA1 41.76 0.00 41.760.12299404,348.49UNION MONEY 2,714,390.9890152,714,390.98 0.540LA2 1,247.46 0.00 1,247.460.509992,887,390.98LAIF 2018 1,370,432.6990041,370,432.69 0.450PA1 864.51 0.00 864.510.545991,866,894.10UNION OPERATING 29,727,968.51900129,727,968.51 0.540LA1 12,270.09 0.00 12,270.090.5849924,727,968.51LAIF 12,621.93901012,621.93 0.110PA1 1.18 0.00 1.180.1109912,621.63RESERVE-10 COPS 31,419.15901131,419.15 0.110PA1 2.93 0.00 2.930.1109931,418.36RESERVE-10 BABS 41,231,438.89900741,231,438.89 0.905LA3 31,691.72 0.00 31,691.720.9059941,231,438.89SD COUNTY POOL 79,142,624.11Subtotal 79,164,950.48 0.797 50,653.69-2,689.9353,343.6274,837,097.26 79,142,624.11Total 79,164,950.48 0.797 50,653.69-2,689.9353,343.6274,837,097.26 Portfolio OTAY NL! APData Updated: SET_ME8: 01/20/2021 14:08 Run Date: 01/20/2021 - 14:08 IE (PRF_IE) 7.2.0 Report Ver. 7.3.5 Check Total 2,043.50 45,795.40 8.85 2055429 01/13/21 12631 CITY OF CHULA VISTA DDA03746 01/07/21 EMERGENCY REPAIR 3,000.00 3,000.00 765.89 765.89 2055395 01/06/21 20535 CINDY OWUSU AFRIYIE Ref002614912 01/04/21 UB Refund Cst #0000218100 8.85 VFD TRAILER MATERIAL 8,938.38 8,938.38 2055394 01/06/21 15800 CHAN, SIU MAN POLLY PC122820 12/28/20 TUITION REIMBURSEMENT 2055428 01/13/21 18170 CED INDUSTRIAL & LIGHT 7125-1021404 12/18/20 63,089.50 2055393 01/06/21 20541 CATHERINE BOWES Ref002614919 01/04/21 UB Refund Cst #0000258419 22.48 22.48 1,135.00 1,135.00 2055366 12/29/20 20410 CAPITAL INDUSTRIAL 112042020 12/11/20 850-1 & 1200-1 RES PROJECT (12/4/20)63,089.50 UTILITY LOCATING SERVICES (NOV 2020)12,375.00 12,375.00 2055455 01/20/21 18560 CALIFORNIA DEPARTMENT OF 0016378580 01/13/21 UNDERGROUND TANK FEES (CY2020) 2055365 12/29/20 20374 CALBURTON INC CAL318 12/03/20 1,864.92 2055364 12/29/20 18665 BURTECH PIPELINE INC 212082020 12/11/20 14" FORCE MAIN AIR-VACS REPLACE (12/8/20)119,700.00 119,700.00 1,133.45 1,133.45 2055392 01/06/21 20544 BROOKFIELD RESIDENTIAL Ref002614922 01/04/21 UB Refund Cst #0000259636 1,864.92 FY2021 WORKERS' COMP PROGRAM (QTR 2)101,348.44 101,348.44 2055391 01/06/21 20543 BALDWIN NEW HOMES INC Ref002614921 01/04/21 UB Refund Cst #0000259510 2055427 01/13/21 20199 ASSOC OF CA WATER AGENCIES 010721 WC 2ND QTR01/07/21 2,823.39 2055363 12/29/20 13171 ARCADIS US INC 34202663 12/03/20 WATER RECLAMATION SERV (8/11/20-9/30/20)19,627.85 19,627.85 960.21 960.21 2055426 01/13/21 03492 AQUA-METRIC SALES COMPANY 0080453 12/22/20 SENSUS 3" V2 METER TESTER 2,823.39 UB Refund Cst #0000259848 50.17 50.17 2055390 01/06/21 08967 ANTHEM EAP 79840 01/01/21 EMPLOYEE ASSISTANCE PROGRAM (CY2021) 2055389 01/06/21 20545 AMMAR ALQARAGHULI Ref002614923 01/04/21 36,887.00 CM202042 12/09/20 CMIS (10/1/20-11/30/20)8,158.40 CM202044 12/07/20 CMIS (11/1/20-11/30/20)750.00 UTILITY LOCATING (NOV 2020)8,430.00 8,430.00 2055362 12/29/20 14462 ALYSON CONSULTING CM202043 12/07/20 CMIS (10/1/20-11/30/20) 2055361 12/29/20 15024 AIRX UTILITY SURVEYORS INC 3411302020 12/07/20 9108081021 12/15/20 AS-NEEDED AQUA AMMONIA 677.50 9108081020 12/15/20 AS-NEEDED AQUA AMMONIA 414.00 453.00 453.00 2055425 01/13/21 07732 AIRGAS SPECIALTY PRODUCTS INC 9108081019 12/15/20 AS-NEEDED AQUA AMMONIA 952.00 SEWER FLOW MONITORING 695.00 695.00 2055360 12/29/20 07732 AIRGAS SPECIALTY PRODUCTS INC 9107273845 12/04/20 AS-NEEDED AQUA AMMONIA 2055454 01/20/21 17989 ADS CORP 22446.22-1220 12/28/20 2,175.00 2055424 01/13/21 18122 ACC BUSINESS 203482425 12/27/20 INTERNET CIRCUIT SERVICES FY20-22 1,013.64 1,013.64 Amount 2055423 01/13/21 08488 ABLEFORCE INC 9810 01/08/21 SHAREPOINT & INTRANET SUPPORT SVCS 2,175.00 CHECK REGISTER Otay Water District Date Range: 12/23/2020 - 1/20/2021 Check #Date Vendor Vendor Name Invoice Inv. Date Description Page 1 of 6 Check Total Amount CHECK REGISTER Otay Water District Date Range: 12/23/2020 - 1/20/2021 Check #Date Vendor Vendor Name Invoice Inv. Date Description 1,530.00 1,219.00 21,137.79 13,230.99 2,271.42 643.02 643.02 2055371 12/29/20 00174 HACH COMPANY 12226887 12/01/20 FY21 MONOCHLORAMINE ANALYZER SUPP 2,271.42 ADMIN WATER DAMAGE RESTORATION 38,339.00 38,339.00 2055435 01/13/21 12907 GREENRIDGE LANDSCAPE INC 20173 12/15/20 LANDSCAPING SERVICES 2055434 01/13/21 19980 GRACE BUILDERS INC.3527 12/17/20 25.00 2055463 01/20/21 20520 FRANCHISE TAX BOARD Ben2616645 01/21/21 BI WEEKLY PAYROLL DEDUCTION 569.34 569.34 75.00 75.00 2055462 01/20/21 20481 FRANCHISE TAX BOARD Ben2616643 01/21/21 BI-WEEKLY PAYROLL DEDUCTION 25.00 BI-WEEKLY PAYROLL DEDUCTION 25.00 25.00 2055461 01/20/21 19640 FRANCHISE TAX BOARD Ben2616641 01/21/21 BI-WEEKLY PAYROLL DEDUCTION 2055400 01/06/21 20481 FRANCHISE TAX BOARD Ben2614949 01/07/21 45.21 2055399 01/06/21 19640 FRANCHISE TAX BOARD Ben2614947 01/07/21 BI-WEEKLY PAYROLL DEDUCTION 75.00 75.00 212.14 212.14 2055460 01/20/21 11962 FLEETWASH INC 2077287 12/18/20 FLEET WASH SERVICES FY21 45.21 FLEET WASH SERVICES FY21 101.32 101.32 2055398 01/06/21 11962 FLEETWASH INC 2070997 12/11/20 FLEET WASH SERVICES FY21 2055370 12/29/20 11962 FLEETWASH INC 2065082 12/04/20 INVENTORY 7,515.93 0737869-1 12/21/20 INVENTORY 5,715.06 0740249-1 12/01/20 INVENTORY 543.97 2055433 01/13/21 03546 FERGUSON WATERWORKS # 1083 0742448 12/17/20 1,246.48 1,246.48 2055369 12/29/20 03546 FERGUSON WATERWORKS # 1083 0741342 12/10/20 GATE VALVES 20,593.82 UB Refund Cst #0000258305 38.95 38.95 2055459 01/20/21 20511 EYEMED 164606024 01/01/21 VISION BENEFITS ADMINISTRATION (CY2021) 2055397 01/06/21 20540 ERIKA JIMENEZ Ref002614918 01/04/21 9.48 2055458 01/20/21 02447 EDCO DISPOSAL CORPORATION 19-E3 155458 12/31/20 RECYCLED WASTE SERVICE 214.22 214.22 2,690.00 2,690.00 2055396 01/06/21 20534 DENISE MEDINA Ref002614911 01/04/21 UB Refund Cst #0000197675 9.48 NOTICE OF EXEMPTION 50.00 50.00 2055457 01/20/21 19047 D&D WILDLIFE HABITAT 55038 06/23/20 PRUNE VEGETATION & WEED REMOVAL 2055456 01/20/21 00134 COUNTY OF SAN DIEGO P2671011421 01/14/21 UPFP PERMIT RENEWAL (9/30/20-9/30/21)735.00 2785092620 09/26/20 UPFP PERMIT RENEWAL (9/30/20-9/30/21)484.00 2003193E63397 01/04/21 DEVELOPER PLAN CHECK (1/4/21)765.00 2055432 01/13/21 00184 COUNTY OF SAN DIEGO 1352101220 10/12/20 1,888.30 2055431 01/13/21 00184 COUNTY OF SAN DIEGO 2003193E63389 12/17/20 DEVELOPER PLAN CHECK (12/17/20)765.00 1,475.75 1,475.75 2055368 12/29/20 00099 COUNTY OF SAN DIEGO DPWMWD1120 12/08/20 EXCAVATION PERMITS (NOV 2020)1,888.30 MASTER METER BODIES & 3G METERS 11,673.84 11,673.84 2055430 01/13/21 02643 CORE-ROSION PRODUCTS C2020470 12/30/20 BOSS FITTING 2055367 12/29/20 18331 CORE & MAIN LP N256778 12/04/20 Page 2 of 6 Check Total Amount CHECK REGISTER Otay Water District Date Range: 12/23/2020 - 1/20/2021 Check #Date Vendor Vendor Name Invoice Inv. Date Description 10,706.01 7,692.30 SAN MIGUEL HMA (10/31/20-11/27/20)5,367.00205543901/13/21 15622 ICF JONES & STOKES INC 0151941 12/22/20 22,770.07 2055466 01/20/21 20558 HOMEFED SH OTAY LLC Ref002616592 01/14/21 UB Refund Cst #0000251306 34.43 34.43 32.02 32.02 2055438 01/13/21 02008 HELIX ENVIRONMENTAL 105381 12/17/20 ENVIRONMENTAL SVCS (ENDING 12/31/20)22,770.07 CAPACITY FEE STUDY 4,052.50 4,052.50 2055401 01/06/21 20531 HECTOR FERNANDEZ Ref002614908 01/04/21 UB Refund Cst #0000154911 2055374 12/29/20 19825 HDR ENGINEERING INC 1200313237 12/04/20 9,467.50 2055437 01/13/21 18436 HAZEN AND SAWYER DPC 200940042 12/17/20 ASSET MANAGEMENT SVCS (NOV 2020)12,451.25 12,451.25 1,911.09 1,911.09 2055373 12/29/20 18436 HAZEN AND SAWYER DPC 200940041 11/16/20 ASSET MANAGEMENT SVCS (OCT 2020)9,467.50 AS-NEEDED SODIUM HYPOCLORITE FY21 1,802.88 1,802.88 2055465 01/20/21 20560 HAZARD CONSTRUCTION Ref002616594 01/14/21 UB Refund Cst #0000264751 726110 12/18/20 AS-NEEDED SODIUM HYPOCLORITE FY21 186.97 2055464 01/20/21 19978 HASA INC.726858 12/28/20 725244 12/22/20 AS-NEEDED SODIUM HYPOCLORITE FY21 222.58 726111 12/18/20 AS-NEEDED SODIUM HYPOCLORITE FY21 195.87 726651 12/23/20 AS-NEEDED SODIUM HYPOCLORITE FY21 278.22 725892 12/17/20 AS-NEEDED SODIUM HYPOCLORITE FY21 254.85 726323 12/21/20 AS-NEEDED SODIUM HYPOCLORITE FY21 745.64 726109 12/18/20 AS-NEEDED SODIUM HYPOCLORITE FY21 569.80 726108 12/18/20 AS-NEEDED SODIUM HYPOCLORITE FY21 1,112.89 726650 12/23/20 AS-NEEDED SODIUM HYPOCLORITE FY21 942.62 AS-NEEDED SODIUM HYPOCLORITE FY21 1,780.62 726107 12/18/20 AS-NEEDED SODIUM HYPOCLORITE FY21 1,402.24 2055436 01/13/21 19978 HASA INC.725509 12/22/20 724410 12/04/20 AS-NEEDED SODIUM HYPOCLORITE FY21 222.58 724187 12/03/20 AS-NEEDED SODIUM HYPOCLORITE FY21 200.32 725071 12/10/20 AS-NEEDED SODIUM HYPOCLORITE FY21 358.35 724409 12/04/20 AS-NEEDED SODIUM HYPOCLORITE FY21 333.87 725243 12/11/20 AS-NEEDED SODIUM HYPOCLORITE FY21 667.73 725072 12/10/20 AS-NEEDED SODIUM HYPOCLORITE FY21 395.08 724407 12/04/20 AS-NEEDED SODIUM HYPOCLORITE FY21 1,514.64 724408 12/04/20 AS-NEEDED SODIUM HYPOCLORITE FY21 784.59 724726 12/08/20 AS-NEEDED SODIUM HYPOCLORITE FY21 1,947.56 725242 12/11/20 AS-NEEDED SODIUM HYPOCLORITE FY21 1,558.05 2,271.42 2055372 12/29/20 19978 HASA INC.723763 12/01/20 AS-NEEDED SODIUM HYPOCLORITE FY21 2,723.24 2055371 12/29/20 00174 HACH COMPANY 12226887 12/01/20 FY21 MONOCHLORAMINE ANALYZER SUPP 2,271.42 Page 3 of 6 Check Total Amount CHECK REGISTER Otay Water District Date Range: 12/23/2020 - 1/20/2021 Check #Date Vendor Vendor Name Invoice Inv. Date Description 11,677.28 104,609.25 9,680.00 27,130.38 2055470 01/20/21 20561 PAL GENERAL ENGINEERING INC Ref002616595 01/14/21 UB Refund Cst #0000266075 703.51 703.51 1,785.00 1,785.00 2055378 12/29/20 01002 PACIFIC PIPELINE SUPPLY INC S100417243.001 12/02/20 RWCWRF AIR-VAC VALVES 27,130.38 ENGINEERING DESIGN (8/1/20-10/31/20)2,192.50 2,192.50 2055469 01/20/21 18332 NV5 INC 184482 10/31/20 ENGINEERING DESIGN (11/1/20-11/28/20) 2055377 12/29/20 18332 NV5 INC 189039 12/01/20 238 12/24/20 WEBSITE SUPPORT SERVICES 3,080.00 239 12/24/20 WEBSITE SUPPORT SERVICES 660.00 132.53 2055441 01/13/21 18172 NIGHTCODERS 240 12/24/20 WEBSITE SUPPORT SERVICES 5,940.00 83.46 83.46 2055452 01/20/21 20557 MIRNA RIVERA Ref002616591 01/14/21 UB Refund Cst #0000185469 132.53 UB Refund Cst #0000239062 61.82 61.82 2055451 01/20/21 20559 MARIO FAVELA Ref002616593 01/14/21 UB Refund Cst #0000253055 2055409 01/06/21 20538 LUIS RAMIREZ Ref002614915 01/04/21 RESERVOIR FLOATING COVER MAINT 102,035.00 E09361-2 10/22/20 AS-NEEDED FLOATING COVER REPAIRS 2,574.25 2055408 01/06/21 15615 LAYFIELD USA CORPORATION E09361-1 10/22/20 4,541.40 2055450 01/20/21 20555 LARRY LEAS Ref002616589 01/14/21 UB Refund Cst #0000075144 97.27 97.27 15,609.00 15,609.00 2055407 01/06/21 18647 KNOWBE4 INC 114557 12/27/20 SOFTWARE LICENSE 4,541.40 UB Refund Cst #0000259000 32.10 32.10 2055468 01/20/21 05840 KIRK PAVING INC 7680 12/04/20 AS-NEEDED PAVING SERVICE FY21 2055406 01/06/21 20542 KAYLIE HOGAN Ref002614920 01/04/21 119.00 2055467 01/20/21 20075 KAY CONSTRUCTION CO 312312020 12/23/20 PIPELINE CATHODIC PROTECTION (DEC 2020)13,917.50 13,917.50 184.93 184.93 2055405 01/06/21 20546 JOHN HARTZELL Ref002614924 01/04/21 UB Refund Cst #0000260373 119.00 ANTENNA SUBLEASE 1,938.00 1,938.00 2055404 01/06/21 20536 JEFF REDONDO Ref002614913 01/04/21 UB Refund Cst #0000226458 2055403 01/06/21 17106 IWG TOWERS ASSETS II LLC 594450 01/01/21 325.00 2055402 01/06/21 20547 ISABEL MAROCCO Ref002614925 01/04/21 UB Refund Cst #0000266074 49.82 49.82 2,567.70 2,567.70 2055440 01/13/21 08969 INFOSEND INC 183065 12/18/20 BILL PROCESSING SERVICES 325.00 GAS DETECT PROG (HAZWOP & DISINFECTION)316.93 316.93 2055376 12/29/20 08969 INFOSEND INC 182556 12/01/20 BILL PROCESSING SERVICES 2055375 12/29/20 17816 INDUSTRIAL SCIENTIFIC CORP 2381217 12/12/20 0151572 12/09/20 ENVIRONMENTAL SVCS (10/31/20-11/27/20)1,755.28 0151619 12/10/20 ENVIRONMENTAL SVCS (10/31/20-11/27/20)1,337.50 SAN MIGUEL HMA (10/31/20-11/27/20)5,367.00 0151620 12/10/20 ENVIRONMENTAL SVCS (10/31/20-11/27/20)3,217.50 2055439 01/13/21 15622 ICF JONES & STOKES INC 0151941 12/22/20 Page 4 of 6 Check Total Amount CHECK REGISTER Otay Water District Date Range: 12/23/2020 - 1/20/2021 Check #Date Vendor Vendor Name Invoice Inv. Date Description 137,440.24 14,714.21 111,014.38 120.46 1,736.00 1,736.00 2055419 01/06/21 20533 STREET PROPERTIES INC Ref002614910 01/04/21 UB Refund Cst #0000177417 120.46 WATER SYSTEM FEES (7/1/20-6/30/21)95,831.14 95,831.14 2055445 01/13/21 01460 STATE WATER RESOURCES WD0183468 01/11/21 ANNUAL PERMIT FEES (7/1/21-6/30/21) 2055444 01/13/21 01460 STATE WATER RESOURCES LW1029936 12/18/20 75.00 2055418 01/06/21 20548 SONIA RUAN 7515010521 01/05/21 CUSTOMER REFUND 689.63 689.63 187.53 187.53 2055417 01/06/21 20539 SHAWN FOCHT Ref002614917 01/04/21 UB Refund Cst #0000252751 75.00 TUITION REIMBURSEMENT 277.53 277.53 2055453 01/20/21 20556 SHARON MIELE Ref002616590 01/14/21 UB Refund Cst #0000169637 2055416 01/06/21 15086 SAVAGE, DEANDRE DS010421 01/04/21 010721 01/07/21 UTILITY EXPENSES (MONTHLY)3,201.68 122920B 12/29/20 UTILITY EXPENSES (MONTHLY)326.10 UTILITY EXPENSES (MONTHLY)90,939.29 010421A 01/04/21 UTILITY EXPENSES (MONTHLY)16,547.31 2055472 01/20/21 00121 SAN DIEGO GAS & ELECTRIC 010621 01/06/21 UTILITY EXPENSES (MONTHLY)14,405.99 010521 01/05/21 UTILITY EXPENSES (MONTHLY)308.22 122420 12/24/20 UTILITY EXPENSES (MONTHLY)617.14 2055443 01/13/21 00121 SAN DIEGO GAS & ELECTRIC 010421 01/04/21 122120 12/21/20 UTILITY EXPENSES (MONTHLY)56,172.39 122920 12/29/20 UTILITY EXPENSES (MONTHLY)10,882.73 192.99 2055415 01/06/21 00121 SAN DIEGO GAS & ELECTRIC 122920A 12/29/20 UTILITY EXPENSES (MONTHLY)69,767.98 125.00 125.00 2055382 12/29/20 00121 SAN DIEGO GAS & ELECTRIC 121820 12/18/20 UTILITY EXPENSES (MONTHLY)192.99 INVESTMENT ADVISOR SVCS - DEFERRED COMP 5,750.00 5,750.00 2055414 01/06/21 02586 SAN DIEGO COUNTY ASSESSOR 202100003 01/04/21 ASSESSOR DATA (MONTHLY) 2055381 12/29/20 19377 SAGEVIEW ADVISORY GROUP LLC 202030717 12/04/20 106.88 2055413 01/06/21 20532 RONALD GREHOLVER Ref002614909 01/04/21 UB Refund Cst #0000159350 136.00 136.00 4,430.00 4,430.00 2055412 01/06/21 20537 ROBERT SELLARS Ref002614914 01/04/21 UB Refund Cst #0000230539 106.88 RAVE ALERT SOFTWARE LIC (3YR RENEWAL)500.00 500.00 2055380 12/29/20 15647 RFYEAGER ENGINEERING LLC 20325 12/04/20 CORROSION SERVICES (NOV 2020) 2055411 01/06/21 20089 RAVE WIRELESS INC 30194 12/08/20 5,422.50 2055379 12/29/20 03613 PSOMAS 168263 12/01/20 LAND SURVEYING SERV (ENDING 11/26/20)7,590.00 7,590.00 11,400.00 11,400.00 2055410 01/06/21 07860 PROTECTIVE LIFE INSURANCE CO 102788121020 12/10/20 LIFE INSURANCE PREMIUM 5,422.50 AERATION BASIN PUMPING SERVICE 12,195.00 12,195.00 2055442 01/13/21 16029 POTABLE DIVERS INC 20940 12/22/20 RESERVOIR CLEANING & INSPECTIONS 2055471 01/20/21 19354 PATRIOT ENVIROMENTAL SERV INC 04-20-00554-1 11/30/20 Page 5 of 6 Check Total Amount CHECK REGISTER Otay Water District Date Range: 12/23/2020 - 1/20/2021 Check #Date Vendor Vendor Name Invoice Inv. Date Description 1,073.40 5,780.00 829.03 Amount Pd Total:1,331,313.96 Check Grand Total:1,331,313.96 352.85 2055473 01/20/21 08023 WORKTERRA 0098831 12/31/20 EMPLOYEE BENEFITS 787.50 787.50 80.00 80.00 2055422 01/06/21 20504 WEST COAST GENERAL CORP Ref002614916 01/04/21 UB Refund Cst #0000249621 352.85 AS-NEEDED BEE REMOVAL 125.00 125.00 2055449 01/13/21 01343 WE GOT YA PEST CONTROL INC 39446 12/18/20 AS-NEEDED BEE REMOVAL 2055388 12/29/20 01343 WE GOT YA PEST CONTROL INC 39352 12/01/20 2,795.92 2055448 01/13/21 15807 WATCHLIGHT CORPORATION 700096 12/21/20 SECURITY SYSTEM - 978-1 RES/1200-1 PS 2,324.38 2,324.38 7,748.00 7,748.00 2055387 12/29/20 15807 WATCHLIGHT CORPORATION 698534 12/15/20 SECURITY ALARM MONITORING 2,795.92 POSTAGE AND DELIVERY CHARGES 640.00 640.00 2055386 12/29/20 08028 VALLEY CONSTRUCTION MANAGEMENT SD687703 12/03/20 CMIS (NOV 2020) 114-11365077 12/12/20 PORT. TOILET RENTAL 90.10 2055421 01/06/21 08402 US POSTMASTER OWD-12245P 12/14/20 114-11374535 12/16/20 PORT. TOILET RENTAL 98.91 114-11243901 11/14/20 PORT. TOILET RENTAL 90.10 PORT. TOILET RENTAL 439.85 114-11374538 12/16/20 PORT. TOILET RENTAL 110.07 2055447 01/13/21 15675 UNITED SITE SERVICES INC 114-11374683 12/16/20 ADM FEES 2019 BOND (12/1/20-11/30/21)2,960.00 1245449 12/24/20 ADM FEES 2018 BOND (11/1/2020-10/31/2021)2,820.00 dsb20196710 12/01/20 DIG SAFE BOARD FEES (MONTHLY)477.65 2055446 01/13/21 13047 UNION BANK NA 1245357 12/23/20 121,816.25 121,816.25 2055385 12/29/20 00427 UNDERGROUND SERVICE ALERT 1120200502 12/01/20 UNDERGROUND ALERTS (MONTHLY)595.75 COMMUNICATIONS CONSULTING SERVICES 2,500.00 2,500.00 2055384 12/29/20 19272 THARSOS INC 1111302020 12/01/20 TLOPS REDUNDANCY PROJ (NOV 2020) 2055420 01/06/21 18376 SVPR COMMUNICATIONS 1383 11/30/20 120.46 2055383 12/29/20 15974 SUN LIFE FINANCIAL 38166120120 12/01/20 LIFE INSURANCE AND STD/LTD (DEC 2020)9,617.39 9,617.39 2055419 01/06/21 20533 STREET PROPERTIES INC Ref002614910 01/04/21 UB Refund Cst #0000177417 120.46 Page 6 of 6