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HomeMy WebLinkAbout10-07-20 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 October 7, 2020 3:30 P.M. AGENDA 1. ROLL CALL 2. PLEDGE OF ALLEGIANCE 3. APPROVAL OF AGENDA 4. 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 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 In lieu of in-person attendance, members of the public may submit their comments on agendized and non-agendized items via email at boardsecretary@otaywater.gov. Public comments submitted will be read into the record at the Board Meeting and the public may continue to watch and listen to meetings. The information on how to watch and listen to the District’s live streaming can be found at this link: https://otay- water.gov/board-of-directors/agenda-and-minutes/board-agenda/ PUBLIC HEARING 6. PUBLIC HEARING ON RATES AND CHARGES THE BOARD WILL BE HOLDING A PUBLIC HEARING TO CONSIDER THE PRO- POSED SEWER RATE CHANGES TO BE IMPLEMENTED IN THE FISCAL YEAR 2020- 2021 OPERATING AND CAPITAL BUDGETS AND TO AUTHORIZE THE PASS- 2 THROUGH OF INCREASES FROM SEWER SERVICE PROVIDERS AND DISTRICT INCREASES FOR A PERIOD OF FIVE YEARS, FOR FISCAL YEARS 2021-2025, NOT- TO-EXCEED 10 PERCENT ANNUALLY, FOR ALL COSTS OTHER THAN PASS- THROUGH COSTS FROM SEWER SERVICE PROVIDERS. THE BOARD INVITES THE PUBLIC TO PROVIDE COMMENTS ON THE PROPOSED SEWER RATE CHANGES. a) APPROVE THE IMPLEMENTATION OF SEWER RATE CHANGES AS PRO- POSED FOR THE FISCAL YEAR 2020-2021 OPERATING AND CAPITAL BUDG- ETS; ADOPT ORDINANCE NO. 578 AMENDING SECTION 53, AND APPENDIX A, SCHEDULE OF FEES, OF THE DISTRICT’S CODE OF ORDINANCES; AU- THORIZE FOR A PERIOD OF FIVE-YEARS THE PASS-THROUGH OF COST INCREASES FROM SEWER SERVICE PROVIDERS; AND AUTHORIZE, FOR A PERIOD OF FIVE-YEARS, DISTRICT SEWER RATE INCREASES NOT-TO-EX- CEED 10 PERCENT ANNUALLY FOR ALL COSTS OTHER THAN PASS- THROUGH COSTS (KOEPPEN) CONSENT CALENDAR 7. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PARTICU- LAR ITEM: a) APPROVE CHANGE ORDER NO. 8 TO THE EXISTING CONSTRUCTION CONTRACT WITH PACIFIC HYDROTECH CORPORATION IN THE AMOUNT OF $59,903.35 FOR THE 870-2 PUMP STATION REPLACEMENT PROJECT b) AUTHORIZE THE ISSUANCE OF PURCHASE ORDERS FOR THE PURCHASE OF SIX (6) FLEET VEHICLES TO: 1) FORD OF CHULA VISTA IN 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 FORD IN THE AMOUNT OF $29,590.75 FOR ONE (1) 2021 FORD RANGER PICK-UP TRUCK. THE TOTAL AMOUNT FOR ALL SIX (6) FLEET VEHICLES IS $216,633.55 ACTION ITEMS 8. ENGINEERING AND OPERATIONS a) ADOPT RESOLUTION NO. 4387 APPROVING THE AUGUST 24, 2020 PUR- CHASE AGREEMENT FOR $182,000 FOR THE JAMACHA BOULEVARD PROP- ERTY IN SPRING VALLEY AND AUTHORIZE THE GENERAL MANAGER TO COMPLETE THE SALE OF THE PROPERTY (KENNEDY) 3 9. GENERAL MANAGER a) ADOPT ORDINANCE NO. 579 AMENDING SECTION 6, CONFLICT OF INTER- EST CODE, CONTAINED WITHIN THE DISTRICT’S CODE OF ORDINANCES TO UPDATE THE POSITION TITLES REQUIRED TO FILE A FORM 700; TO IN- CLUDE 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 (CRUZ) 10. BOARD a) DISCUSS THE 2020 BOARD MEETING CALENDARS INFORMATIONAL ITEMS 11. THE FOLLOWING ITEMS ARE PROVIDED TO THE BOARD FOR INFORMATIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEMS: a) ANNUAL DIRECTOR’S EXPENSE REPORT FOR FISCAL YEAR 2020 (APUY) b) YEAR-END REPORT ON THE DISTRICT’S FISCAL YEARS 2019-2022 STRATE- GIC PERFORMANCE PLAN FOR FISCAL YEAR 2020 (KERR) REPORTS 12. GENERAL MANAGER’S REPORT a) UPDATE ON DISTRICT’S RESPONSE TO COVID-19 PANDEMIC 13. SAN DIEGO COUNTY WATER AUTHORITY UPDATE 14. DIRECTORS' REPORTS/REQUESTS 15. PRESIDENT’S REPORT/REQUESTS RECESS TO CLOSED SESSION 16. 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] 4 OTAY WATER DISTRICT v. CITY OF SAN DIEGO; CASE NO. 37-2017- 00019348-CU-WM-CTL RETURN TO OPEN SESSION 17. 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 18. NO MATTERS TO DISCUSS 19. ADJOURNMENT All items appearing on this agenda, whether or not expressly listed for action, may be deliberated and may be subject to action by the Board. The Agenda, and any attachments containing written information, are available at the District’s website at www.otaywater.gov. Written changes to any items to be considered at the open meeting, or to any attachments, will be posted on the District’s website. Copies of the Agenda and all attachments are also available 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 October 2, 2020 I posted a copy of the foregoing agenda near the regular meeting place of the Board of Directors of Otay Water District, said time being at least 72 hours in advance of the regular meeting of the Board of Directors (Government Code Section §54954.2). Executed at Spring Valley, California on October 2, 2020. /s/ Susan Cruz, District Secretary 1 MINUTES OF THE BOARD OF DIRECTORS MEETINGS OF THE OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY July 1, 2020 1.The meeting was called to order by General Manager Martinez at 3:31 p.m. 2.ROLL CALL Directors Present: Croucher, Gastelum, Robak (arrived at 3:34 p.m.), 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 General Manager Jose Martinez proposed that item 7a, CONSIDER THE MAY 26, 2020 PURCHASE AGREEMENT FOR $180,000 FOR THE BUENA VISTA AVENUE PROPERTY IN SPRING VALLEY AND THE SECOND OFFER TO PURCHASE SAID PROPERTY, be moved to follow the closed session discussion. A motion was made by Director Smith, and seconded by Director Thompson and carried with the following vote: Ayes: Directors Croucher, Gastelum, Smith and Thompson Noes: None Abstain: None Absent: Director Robak to approve the agenda with the proposed amendment. 5.APPROVE THE MINUTES OF THE REGULAR BOARD MEETING OF MAY 6, 2020 AND THE SPECIAL BOARD MEETINGS OF MARCH 20, 2020, MARCH 23, 2020, MARCH 25, 2020, AND APRIL 29, 2020 A motion was made by President Croucher, and seconded by Director Thompson and carried with the following vote: AGENDA ITEM 4 2 Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: None to approve the minutes of the regular board meeting of May 6, 2020 and the special board meetings of March 20, 2020, March 23, 2020, March 25, 2020, and April 29, 2020. 6. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA No one wished to be heard. CONSENT CALENDAR 7. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PARTICULAR ITEM: A motion was made by President Croucher, and 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 the following consent calendar item: a) APPROVE THE CONTINUATION OF THE MORATORIUM ON ANY CHANGES TO ALL DISTRICT CAPACITY AND ANNEXATION FEES TO OCTOBER 31, 2020 ACTION ITEMS 8. BOARD a) DISCUSS THE 2020 BOARD MEETING CALENDAR There were no changes to the board meeting calendar. REPORTS 9. GENERAL MANAGER’S REPORT 3 General Manager Martinez presented information from his report that included an update on the District’s response to the COVID-19 pandemic; potable and recycled water purchases; collections and bad debt exposure; sewer 218 hearing notices and water rate increase notices; property, liability and workers’ compensation insurance; the lobby re-opening; the 870-2 Pump Station Replacement Project; and Campo Road Sewer Replacement Project. Staff responded to questions and comments from the board. President Croucher stated that the District would continue with virtual meetings through the end of the year. 10. SAN DIEGO COUNTY WATER AUTHORITY UPDATE Director Smith reported that CWA was able to reduce their rate increase from 6.3% to 4.8% due to a couple reasons. Due to the recession, the escalator for Cost of Living and Cost of Service was reduced for water purchased from Imperial Irrigation District (IID). Also, CWA shifted the funding for the dredging associated with the Carlsbad Desalination Plant to this current year. He also reported on Padre Dam MWD’s East County Advanced Water Purification Program (the project would upgrade their treatment plant to produce highly purified water), that water for the program will be sent to Helix WD for treatment and then sent back to Padre Dam MWD. He stated that he mentions this project as it is something the Otay WD could consider when discussing recycled water with Sweetwater Authority. The District could possibly have recycled water treated by Sweetwater Authority and sent back to Otay WD. He lastly indicated that he has been looking at what is occuring in the State of California and it is estimated that due to COVID-19, there will be a 21% reduction in housing construction. He was wondering how housing construction in the District’s service area compared with California as a whole. He stated that he thought this would be interesting to know. President Croucher shared with regard to Fallbrook PUD and Rainbow MWD’s interest in detaching from CWA, that some member agencies were still not aware of their request to detach. He stated that either Fallbrook PUD or Rainbow MWD was inferring that Otay WD was sending out or requesting information concerning the detachment. He confirmed that the District is not sending out information but is asking questions concerning the detachment. The District is questioning not only impacts to Otay WD, but also potential indirect impacts, such as, voting rights at MWD, preferential rights within the County, and actions that Eastern MWD and other agencies may have taken to undermine San Diego County as a whole at MWD. LAFCO has scheduled an informational meeting on July 6, 2020 to outline the process they will utilize to review Fallbrook PUD and Rainbow MWD’s request to detach. President Croucher indicated that he has been appointed as one of three CWA representatives to sit on LAFCO’s review committee on the detachment matter. He also shared that CWA is working with legislators to acquire approval to possibly generate power at the San Vicente Reservoir which could help to lower costs County-wide. CWA is also continuing to look at Lake Mead Storage to either attain 4 its own account or obtain flexibility on some of the deliveries which would benefit everyone within the seven (7) basin states. He shared that CWA’s Regional Conveyance System project is still being reviewed as to whether they will move the project to Phase 2. President Croucher lastly reported that CWA’s is continuing to monitor possible impacts from their lowered water sales and its rate increase and how it is impacted by MWD’s transportation rate. MWD will be reviewing their budget and rate increase in September and CWA will have an opportunity to review MWD’s proposed budget and provide input on opportunities they feel MWD could take advantage of to lower their rate increase. 11. DIRECTORS' REPORTS/REQUESTS Directors Smith, Thompson, Gastelum and Robak reported that they have submitted their written reports to District Secretary Cruz and that their reports will be attached to the minutes for today’s meeting. Director Thompson indicated that he is interested in attending LAFCO’s committee on July 6 discussing Fallbrook PUD and Rainbow MWD’s request to detach from CWA and asked if the meeting information could be forwarded to him. Director Robak inquired if the Padre Dam Advanced Purification Program is believed to be cost effective. Director Smith indicated that the worth of water supply diversification projects are included in focus group surveys. The focus group surveys indicate that the public feels that diversification water projects are worth about 10% of the overall rate increase (the new added water as a percentage of the total). He stated that he believes that the project is very close to the 10%. As a per acre foot cost, it is expensive water, but the Carlsbad Desalination Project is also expensive water. Director Smith indicated that he feels, however, indirect and direct potable reuse is the future for water diversification. Director Robak also reported that he attended the LAFCO Special District’s Advisory Committee where they discussed the Fallbrook PUD and Rainbow MWD’s interest in detaching from CWA. 12. PRESIDENT’S REPORT President Croucher requested that District Secretary Cruz provide board members a copy of the District’s board policy related to meetings and per diems. He asked that the board review the process for those meetings requiring preapproval by the board president and asked that board members contact him ahead of those meetings for authorization. He stated this would allow for compliance of the policy and if the board wished to revisit the policy, they can do so, but he would like the board to follow the current policy. 13. CLOSED SESSION 5 The board recessed to closed session at 4:20 p.m. to discuss the following matters: a) DISCUSSION RELATING TO CORONAVIRUS (COVID-19) AND PUBLIC SERVICES [GOVERNMENT CODE §54957] b) LIABILITY CLAIMS [GOVERNMENT CODE §54956.95] CLAIMANT: THAIR MIKAIL AGENCY CLAIMED AGAINST: OTAY WATER DISTRICT c) 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 d) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOVERNMENT CODE §54956.9] OTAY WATER DISTRICT vs. RAINBOW MUNICIPAL WATER DISTRICT; CASE NO. 37-2020-00001510-CU-WM-CTL e) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOVERNMENT CODE §54956.9] OTAY WATER DISTRICT vs. FALLBROOK PUBLIC UTILITY DISTRICT; CASE NO. 37-2017-00019348-CU-WM-CTL 14. 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 5:33 p.m. and General Counsel Dan Shinoff reported that the board took two reportable actions. The board voted unanimously, five to zero, to reject the tort claim submitted by Thair Mikail. The board also voted unanimously, five to zero, to authorize General Manager Martinez to enter into a listing agreement for the sale of the Salt Creek Property with Colliers International for a fee that is based on a scale proposed by Colliers International: $0 to $5 million 0.65% $5 to $10 million 0.70% Over $10 million 0.75% 6 ACTION ITEM 15. CONSIDER THE MAY 26, 2020 PURCHASE AGREEMENT FOR $180,000 FOR THE BUENA VISTA AVENUE PROPERTY IN SPRING VALLEY AND THE SECOND OFFER TO PURCHASE SAID PROPERTY Engineering Manager Bob Kennedy indicated that the District received another offer for the Buena Vista Avenue Property in Spring Valley. This is the fourth offer and it was received in May 2020 from B AVE, LLC for $180,000. Today, the District received an addendum to the purchase agreement which identifies the buyer as Ranchito Buena Vista, LLC. Mr. Kennedy indicated that since the receipt of the offer from B AVE, LLC (or Ranchito Buena Vista, LLC) and presentation of this item to the Committee, the District was informed of another offer for the property from Ms. Erika Rodriguez for $222,500 dated June 24, 2020. A motion was made by President Croucher and seconded by Director Thompson who amended the motion for the board to delegate to the General Manager the negotiation of the contingency period at his discretion. General Counsel suggested that the board include in the motion that if a counteroffer is received that the General Manager clarifies any removal of contingencies and request that there be no assignee so the District knows who the buyer is. President Croucher and Director Thompson accepted the amendments and the motion carried with the following vote: Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: None that the District accept the highest offer for the Buena Vista Avenue property, delegate to the General Manager the negotiation of the contingency period at the General Manager’s discretion, and if a counteroffer is received that the General Manager clarifies any removal of contingencies and request that there be no assignee so the District knows who the buyer is. Director Thompson indicated that he would like to see the contingency period negotiated down to 17 days. President Croucher indicated that once the District has worked out the 17 days, that it is his intention to bring this item to a special board meeting for action so the sale is not delayed further. OTAY WATER DISTRICT FINANCING AUTHORITY 16. NO MATTERS TO DISCUSS There were no items scheduled for discussion for the Otay Water District Financing Authority board. 7 17. ADJOURNMENT With no further business to come before the Board, President Croucher adjourned the meeting at 5:39 p.m. ___________________________________ President ATTEST: District Secretary 8 Board of Directors Meetings Attended Form Director Name: Gary Croucher Period Covered: From: 5/22/20 To: 6/30/20 Item No. Date Meeting Attended Description 1. 5/22/20 Target Solutions Training Coronavirus 101: What You Need to Know 2. 6/3/20 OWD Board Meeting OWD Regular Board Meeting 3. 6/8/20 Meeting with GM & Gen Counsel Discuss District Matters 4. 6/9/20 Meeting with GM & Gen Counsel Discuss District Matters 6/9/20 Committee Agenda Briefing Met w/ General Manager Martinez to review items that will be presented at the June committee meetings 5. 6/12/20 Meeting with Dir Gastelum & Gen Counsel Discuss District Matters 6. 6/23/20 Board Agenda Briefing Met with General Manager Martinez and General Counsels Shinoff and Blumenfeld to review the July Board Meeting Agenda 6/23/20 CWA Matters Mtg Met with Dir Smith and GM Martinez to discuss CWA matters Board of Directors Meetings Attended Form Director Name: Tim Smith Period Covered: From: 6/1/20 To: 6/30/20 Item No. Date Meeting Attended Description 1. 6/3/20 OWD Regular Board Meeting Monthly Board Meeting (video conf.) 2. 6/23/20 CWA Matters Meeting Discuss CWA Matters (video conf.) 3. 6/24/20 East County Caucus Meeting Discuss East County issues with agencies and CWA (video conf.) 4. 6/25/20 Coronavirus 101 Training Took updated training on COVID-19 (video training) 5. 6. 7. 8. 9. 10. -Instructions on Reverse - Board of Directors Meetings Attended Form Director Name:Mitchell Thompson Period Covered: From: 6/1/2020 To: 6/30/2020 Item No. Date Meeting Attended Description 1. 2.6/2/20 SCEDC Board Meeting Represent OWD at SCEDC Monthly Board Meeting 3.6/3/20 OWD Board Meeting See agenda, regular monthly board meeting 4.6/15/20 OWD F&A Committee Mtg See agenda 5. 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: 6/1/2020 To: 6/30/2020 ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED MILEAGE HOME to OWD OWD to HOME MILEAGE OTHER LOCATIONS 1 6/3 OWD BOARD MEETING 2 6/12 MEETING W-GARY CROUCHER & DAN SCHINOFF 3 6/24 CHULA VISTA CHAMBER OF COMMERCE JOINT ECONOMIC DEVELOPMENT & PUBLIC POLICY MEETING 4 5 6 7 8 9 10 11 12 13 Total Meeting Per Diem: $304.00 ($152 per meeting) Total Mileage Claimed: miles Recv'd 7/1/20 Mark Robak 7014 From:6/1/2020 6/30/2020 ITEM DATE MEETING PURPOSE / ISSUES MILEAGE HOME TO OWD OWD TO HOME MILEAGE OTHER LOCATIONS 1 6/2/2020 East County Chamber of Commerce Government Afffairs & Infrstraucture Committee 0 0 2 6/3/2020 OWD Board Meeting OWD Monthly Board Meeting 0 0 3 6/15/2020 Finance & Administration Committee Discussed District finance and administration items 0 0 4 6/19/2020 LAFCO Special Districts Advisory Board Discussed various efficiency matters 0 0 5 6/25/2020 SDCWA Board Meeting Monthly Meeting 0 0 0 0 $ 760 0 Miles GM Receipt: Date: ___________________ Pay To:Period Covered Employee Number Total Mileage Claimed: Director Signature ($152 PER MEETING) Total Meeting Per Diem: OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM 1 MINUTES OF THE BOARD OF DIRECTORS MEETINGS OF THE OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY August 5, 2020 1.The meeting was called to order by General Manager Martinez at 3:31 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 President Croucher, and seconded by Director Smith and carried with the following vote: Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: to approve the agenda with the proposed amendment. 5.PRESENTATION OF THE WATERSMART LANDSCAPE CONTEST “BEST IN DISTRICT” AWARD TO PATRICIA WOOD Director Thompson presented the annual WaterSmart Landscape Contest’s Best in District award to Ms. Patricia Wood. Ms. Wood thanked the District for the honor in selecting her landscape as Best in District this year. She stated she was happy to have completed her landscape makeover and shared that she had attended a landscape class that gave her the confidence to design her own landscape, though, she had no gardening experience. She indicated that her daughter has a very rare genetic disease and spent much of her time indoors and now she able to enjoy the outdoors and her new waterwise garden. She added that it has been a wonderful and relaxing addition to her home and has improved their, especially her daughter’s, Agenda Item 4 2 quality of life. She is very grateful to have taken the class and her garden is better for the environment, saves water and saves her money as well. 6. APPROVE THE MINUTES OF THE SPECIAL BOARD MEETINGS OF APRIL 8, 2020, APRIL 15, 2020, AND JULY 9, 2020 A motion was made by President Croucher, and 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 minutes of the special board meetings of April 8, 2020, April 15, 2020 and July 9, 2020. 7. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA Mr. Charley Wolk, a member of the board from Fallbrook PUD, indicated that his agency’s request to detach from the San Diego County Water Authority (CWA) is driven by their desire to acquire less expensive water for their ratepayers. He stated purchasing water from Eastern Municipal WD is approximately $500 less an acre foot than their current cost from CWA. He indicated that if Otay WD representatives have questions about their interest in detaching from CWA, he and the general manager of Fallbrook PUD were open to meeting and discussing their request. He stated they would like to work together to find common ground. President Croucher thanked Mr. Wolk for reaching out to the District in a positive manner and that he, as President of the Otay WD and Vice Chair of CWA, would be interested in meeting. He stated that he will work with the District’s staff to schedule a time for them to meet. CONSENT CALENDAR 8. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PARTICULAR ITEM: A motion was made by President Croucher, and seconded by Director Robak and carried with the following vote: Ayes: Directors Croucher, Robak, Smith and Thompson Noes: None Abstain: Director Gastelum Absent: None 3 to approve the following consent calendar items: a) AWARD TWO (2) PROFESSIONAL SERVICE CONTRACTS WITH RICK ENGINEERING COMPANY AND STC TRAFFIC, INC. FOR AS-NEEDED TRAFFIC ENGINEERING, EACH IN AN AMOUNT NOT-TO-EXCEED $175,000 FOR FISCAL YEARS 2021 THROUGH 2023. THE TOTAL AMOUNT OF THE TASKS UNDER THE TWO CONTRACTS WILL NOT EXCEED $175,000 b) AWARD A CONSTRUCTION CONTRACT TO KAY CONSTRUCTION COMPANY FOR THE OTAY MESA PIPELINE CATHODIC PROTECTION IMPROVEMENTS PROJECT IN AN AMOUNT NOT-TO-EXCEED $379,115 c) AWARD A CONSTRUCTION CONTRACT TO BURTECH PIPELINE, INC. FOR THE 14-INCH FORCE MAIN AIR-VAC REPLACEMENTS PROJECT IN AN AMOUNT NOT-TO-EXCEED $212,100 ACTION ITEMS 9. BOARD a) DISCUSS THE 2020 BOARD MEETING CALENDAR Director Croucher indicated that due to the increase in COVID-19 cases in the County, the District will continue virtual meetings through the end of the year. There were no changes to the board meeting calendar. INFORMATIONAL ITEMS 10. INFORMATIONAL UPDATE FOR THE ROSARITO DESALINATION PLANT AND THE OTAY MESA CONVEYANCE AND DISINFECTION SYSTEM PROJECTS Engineering Manager Bob Kennedy provided an update to the Board on the progress of the Rosarito Desalination Plant and the Otay Mesa Conveyance and Disinfection System Projects. Please reference Attachment A (Committee Action) to the staff report for the details of Mr. Kennedy’s presentation. Staff responded to questions and comments from the board. REPORTS 11. GENERAL MANAGER’S REPORT General Manager Martinez presented information from his report that included photos of changes to the District’s lobby to comply with State and County orders for social distancing, the State Water Resources Control Board proposed off-ramp for water loss performance standards and reporting requirements, collections and bad debt exposure; federal employer payroll tax credits, the financial reporting for June 4 30, 2020, the Hidden Mountain sewage pump station wet well renovation, Mexico’s request for treaty water deliveries, and the District’s utility maintenance staff providing assistance to Helix WD. Director Robak inquired if an update report could be provided to the Board on the Regional Conveyance System Study that was contracted by the member agencies. General Manager Martinez indicated that staff would provide a report at the next board meeting. Director Smith indicated that the Comparative Budget Summary chart of net revenues and expenses did not reflect the negative net revenues of $1,046,475 as the report indicates and noted that the demands list was not included with the General Manager’s report. Staff indicated they will review why the chart did not reflect the correct information and why the demands list was not included in the packet. Director Thompson inquired about the cost of recycled water and it was suggested that, because of the ongoing litigation on this matter, that the discussion be agendized for closed session at a future meeting. Staff responded to additional questions and comments from the board. 12. SAN DIEGO COUNTY WATER AUTHORITY UPDATE Director Smith reported that CWA discussed at its July board meeting their Climate Action Plan and some of the successes of the plan. CWA also sold a series of water revenues bonds which was timed right before the COVID increase. He stated this provided for CWA receiving very favorable rates which will save CWA approximately $64 million. He lastly shared that CWA completed an update to their Aqueduct Operating Plan and the District will be impacted by a shutdown from CWA this winter. President Croucher additionally shared that CWA is continuing to work to acquire storage in Lake Meade. He indicated that CWA representatives to MWD are working on the process to hire a new General Manager and they are collaborating well with the other board members at MWD. He stated it is good to see relations improving at MWD and they will continue to work on building those relationships. CWA’s board continues to discuss the reduced water sales and its impacts to the budget. He indicated with regard to the Regional Reconveyance System (RCS) that he would work with staff to coordinate a presentation for the Otay WD board. He stated that a decision is not yet being made on whether to move forward with the next phase of the RCS project. They are currently reviewing some last areas of the project and the potential for private/public partners and grants that might be available. He lastly recognized Mr. Jeff Kightlinger upon his retirement from MWD after 14 years of service and his passion for the water industry. 13. PRESIDENT’S REPORT 5 President Croucher reported that there has been some questions and discussion regarding Otay WD and that it had not tried to find ways to reduce its rates. He explained that staff had presented three options for the FY 2021 budget: the original planned increase (full rate increase), a half rate and no rate increase in response to the COVID-19 pandemic. The Board chose to implement a half rate increase in order to avoid the District from getting too far behind and prevent customers from being impacted by a significant rate increase in the next fiscal year. The District reduced its expenses and delayed some CIP projects to decrease costs. Some of the cost reductions included: • Reducing Property and Liability Insurance by approximately over $400,000 by moving to a new provider • Canceling unnecessary travel at a saving of approximately $105,000 • Reduced the Workers’ Compensation premium by approximately $100,000 • Implemented a hiring freeze which provided a saving of approximately $100,000 • Deferred purchases of equipment, furniture and fixtures at a savings of approximately $98,000 • Reduced consultant and outside services which saved approximately $58,000 • Reduced some employee program costs and supplies providing a savings of $34,000 • Reduced costs associated with social media, advertising, membership and dues, etc. President Croucher indicated that the above combined savings in operating and payroll expenses totaled almost $1 million. The District also reduced its CIP expenditures by adjusting the timing of the projects which provided an additional savings of about $5 million. He stated that he also wished to address Fallbrook PUD and Rainbow MWD’s claim that their agencies’ detachment from CWA would only cost each of the Otay WD customers $0.50 a month. President Croucher stated that the additional $0.50 equates to approximately $1 million increase in costs to our ratepayers. He stated that he wished the District to review the impacts of their detachment and have the facts confirmed prior to meetings with Fallbrook PUD and Rainbow MWD so we may have an educated discussion. 14. DIRECTORS' REPORTS/REQUESTS Directors Smith, Thompson, Gastelum and Robak reported that they have submitted their written reports to District Secretary Cruz and that their reports will be attached to the minutes for today’s meeting. Director Thompson additionally indicated that he and Director Robak have met in Ad Hoc to discuss Board of Directors’ Policy 8, Directors Compensation, Reimbursement of Expenses and Group Insurance Benefits, and it will be presented to the board with suggested amendments at an upcoming meeting for 6 consideration. He also indicated that he has been elected the Board President for the Water Conservation Garden Authority (WCG) this year and he worked with General Counsel Jeanne Blumenfeld to update their Conflict of Interest Code and thanked her for her assistance. He also shared that the WCG will be implementing a different fee structure and will be providing a discounted membership to families of member agencies and community college districts. He stated that he will share the information on the new fees when he receives it. Director Robak additionally reported that the study on the Regional Conveyance System commissioned by the member agencies is worth reading and asked General Manager Martinez to share the study with the board. He shared that he attended the WCG board meeting where they presented that the WCG closed out their FY 2020 budget in the black. He indicated that the City of San Diego Pure Water Project received a favorable ruling from the Court with regard to the project’s labor agreement. The issue, however, is not fully resolved as another ruling is expected in September 2020 on whether the Associated General Contractors will appeal the ruling. He lastly reported with regard to the bachelor’s degree that Cuyamaca College was proposing for their Center for Water Studies Program has been approved. The California State University and the University California systems have been opposing their efforts stating competition and impacts to the affordability of their programs and, thus, it was very tough to get State approval and he commended them for their work. Cuyamaca College will be working with National University to provide the final two (2) years of the degree. The program will start being offered at the beginning of next year. OTAY WATER DISTRICT FINANCING AUTHORITY 15. NO MATTERS TO DISCUSS There were no items scheduled for discussion for the Otay Water District Financing Authority board. 16. ADJOURNMENT With no further business to come before the Board, President Croucher adjourned the meeting at 4:56 p.m. ___________________________________ President ATTEST: District Secretary 7 Board of Directors Meetings Attended Form Director Name: Gary Croucher Period Covered: From: 7/1/20 To: 7/31/20 Item No. Date Meeting Attended Description 1. 7/1/20 OWD Board Meeting OWD Regular Board Meeting 2. 7/6/20 Meeting with GM & Gen Counsel Met with General Manager Martinez & General Counsels Shinoff and Blumenfeld to discuss District Matters 3. 7/7/20 Meeting with GM & Gen Counsel Met with GM Martinez & GCs Shinoff and Blumenfeld for a briefing on the July 9 Special Board Meeting 4. 7/9/20 Special Board Meeting OWD Special Board Meeting 5. 7/16/20 Committee Agenda Briefing Met w/ GM Martinez to review items that will be presented at the July committee meetings 6. 7/20/20 EO&WR Committee Reviewed and made recommendation on items that will be presented at the July board meeting 7. 7/21/20 CWA Matters Meeting Met with Dir Smith and GM Martinez to discuss CWA matters 8. 7/22/20 OWD Special Board Meeting OWD Special Board Meeting 9. 7/29/20 Board Agenda Briefing Met with GM Martinez and GCs Shinoff and Blumenfeld to review the July Board Meeting Agenda Board of Directors Meetings Attended Form Director Name: Tim Smith Period Covered: From: 7/1/20 To: 7/31/20 Item No. Date Meeting Attended Description 1. 7/1/20 OWD Regular Board Mtg. Monthly Board Meeting (video conf.) 2. 7/9/20 OWD Special Board Mtg. Special Board Meeting (video conf.) 3. 7/21/20 CWA Matters Meeting Discuss CWA Matters 4. 7/22/20 East County Caucus Meeting Discuss East County issues with agencies and CWA (video conf.) 5. 7/22/20 Special OWD Meeting Special Board Meeting (video conf.) 6. 7/24/20 Desalination Committee Mtg Desalination Committee update (video conf.) 7. 8. 9. 10. -Instructions on Reverse - Board of Directors Meetings Attended Form Director Name:Mitchell Thompson Period Covered: From: 7/1/20 To: 7/31/20 Item No. Date Meeting Attended Description 1.7/1/20 OWD Regular Board Mtg See agenda 2.7/6/20 LAFCO Board Meeting Review meeting regarding Rainbow Fallbrook De- annexation 3.7/7/20 So Co EDC Board Meeting Represent OWD 4.7/22/20 Special Board Meeting Agenda 5.7/23/20 Mtg With Counsel J. Blumfeld & Water Conserv Auth Secretary Agenda and Conflict of interest Code For Water Conservation Authority 6.7/24/20 Desalination Committee Meeting Agenda 7.7/27/20 Policy 8 Ad Hoc Committee Mtg Represent OWD at Meeting 8.7/28/20 Water Conservation Garden Authority Bd Mtg Agenda 9.7/29/20 CV Chamber Utility subcommittee meeting Represent OWD --Discuss issues related to utilities and infrastructure 10. 11. 7/29/20 7/9/20 Follow up Mtg w J. Blumenfeld, Counsel Special Board Meeting Finalize Conflict of Interest Code for Water Conservation Authority Agenda 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: 7/1/2020 To: 8/30/2020 ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED MILEAGE HOME to OWD OWD to HOME MILEAGE OTHER LOCATIONS 1 7/1 OWD BOARD MEETING 2 7/9 SPECIAL BOARD MEETING 3 7/22 SPECIAL BOARD MEETING 4 8/5 OWD BOARD MEETING 5 8/13 QUARTERLY GM MEETING 6 8/14 BIA SOUTHERN CALIFORNIA WATER CONFERENCE TELECONFERENCE 7 8/21 OWD SPECIAL BOARD MEETING 8 8/24 OWD SPECIAL BOARD MEETING 9 10 11 12 13 Total Meeting Per Diem: $1216 ($152 per meeting) 0 Total Mileage Claimed: miles Mark Robak 7014 From:7/1/2020 7/31/2020 ITEM DATE MEETING PURPOSE / ISSUES MILEAGE HOME TO OWD OWD TO HOME MILEAGE OTHER LOCATIONS 1 7/1/2020 OWD Board Meeting OWD Monthly Board Meeting 0 0 2 7/2/2020 SD Chamber Sustainability & Industry Committee Monthly Meeting 0 0 3 7/6/2020 Phone discussion with GM, President & Legal Counsel Discuss issue with Otay Board Member 0 0 4 7/7/2020 East County Chamber of Commerce Government Afffairs & Infrstraucture Committee 0 0 5 7/9/2020 Special OWD Board Meeting Discuss Resolution To Censure Director Hector Gastelum for Official Misconduct 0 0 6 7/22/2020 Special OWD Board Meeting Discuss real estate matter 0 0 7 7/23/2020 SDCWA Board meeting Monthly meeting 0 0 8 7/27/2020 Otay Policy 8 Ad-Hoc Committee Discuss possible changes to Policy 8 0 0 9 7/28/2020 Water Conservation Garden Board Meeting Discuss various matters 0 0 0 0 $ 1,368 0 Miles GM Receipt: Date: ___________________ FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $_____________ Pay To:Period Covered Employee Number Total Mileage Claimed: Director Signature ($152 PER MEETING) Total Meeting Per Diem: OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM 1 MINUTES OF THE SPECIAL BOARD MEETING OF THE BOARD OF DIRECTORS OTAY WATER DISTRICT April 22, 2020 1. At the request of President Croucher, General Manager Jose Martinez called the meeting to order at 12:05 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 Financial Officer Joe Beachem, Chief of Operations Pedro Porras, Chief of Engineering Rod Posada, Chief of Administration and Information Technology Adolfo Segura, Asst. Chief of Finance Kevin Koeppen, Asst. Chief of Engineering, Dan Martin, District Secretary Susan Cruz and others per attached list. 3. PLEDGE OF ALLEGIANCE 4. APPROVAL OF THE AGENDA A motion was made by Director Smith, seconded by Director Robak and carried with the following vote: Ayes: Directors Croucher, GasteIum, Robak, Smith and Thompson Noes: None Abstain: None Absent: None to approve the agenda. 5. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA No one wished to be heard. 6. DISCUSS OTAY WATER DISTRICT’S CORONAVIRUS (COVID-19) RESPONSE General Manager Jose Martinez presented an update of how the District is responding to the Federal, State and Local Orders and indicated that there are no issues with the District’s water supply. Chief Financial Officer Joe Beachem provided to the board a Collections and Bad Debt Exposure handout with information on the number of lockable accounts for 2 both property owners and tenants. It was noted that lockable accounts started at zero on March 1, 2020. As of March 31, 2020, there was a total of 276 lockable accounts. By April 22, 2020, an additional 439 lockable accounts were reported. Also reported to the board was the total amount of waived penalties, which was $61,519.00 as of April 22, 2020. Director Thompson requested that staff provide the number of accounts that were locked each month during the prior year to establish a baseline and compare it to this year’s number of lockable accounts. He would like to get a general idea of how the COVID-19 pandemic has impacted the District’s customers. Customer Service Manager Andrea Carey indicated that an average of 200 to 225 accounts are typically locked every month. Staff responded to additional comments and questions from the board. It was noted that staff is making every effort to help minimize costs for both the District and its customers. RECESS TO CLOSED SESSION 7. CLOSED SESSION The board recessed to closed session at 12:41 p.m. to discuss the following matter: a) EMERGENCY DISCUSSION RELATING TO CORONAVIRUS (COVID-19) AND PUBLIC SERVICES [GOVERNMENT CODE §54957] RETURN TO OPEN SESSION 8. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION The board reconvened from closed session at 1:15 p.m. and General Counsel Dan Shinoff reported that the board took no reportable actions in closed session. 9. ADJOURNMENT With no further business to come before the board, President Croucher adjourned the meeting at 1:15 p.m. ___________________________________ President ATTEST: District Secretary SC:TRK STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 7, 2020 SUBMITTED BY: Kevin Koeppen, Assistant Chief of Finance PROJECT: DIV. NO. All APPROVED BY: Joseph R. Beachem, Chief Financial Officer Jose Martinez, General Manager SUBJECT: Public Hearing Concerning the Implementation of Sewer Rate Changes as Proposed for the Fiscal Year 2020-2021 Operating and Capital Budget; Adoption of Ordinance No. 578 Approving the Changes to Sewer Rates; Authorization of Five-year Pass- through Increases and District Increases for Fiscal Years 2021-2025 Not-to-Exceed 10 Percent Annually, for all Costs Other than Pass-through Costs GENERAL MANAGER’S RECOMMENDATION: That the Board hold a public hearing on the proposed sewer rates and charges; and if no majority protest is received 1) approve the implementation of sewer rate changes as proposed for the Fiscal Year 2020-2021 Operating and Capital Budget; 2) adopt Ordinance No. 578 amending Section 53, and Appendix A, Schedule of Fees of the District’s Code of Ordinances; 3) authorize, for a period of five- years, the pass-through of cost increases from sewer service providers; and 3) authorize, for a period of five-years, District sewer rate increases not-to-exceed 10 percent annually, for all costs other than pass-through costs. PURPOSE: That the Board adopt Ordinance No. 578 to establish sewer rates and charges, and authorize for a period of five years, all pass-through increases or decreases to cover changes to rates, fees, and charges from the District’s sewer providers. In addition, authorize for a period of five years, overall average District increases to sewer rates, fees, and charges, not to exceed 10 percent per year, for all costs other than pass-through costs. AGENDA ITEM 6a ANALYSIS: On May 6, 2020, staff presented to the Board the results of the Sewer Cost of Service Study. On June 3, 2020, the Fiscal Year 2020-2021 Budget containing the changes in rates was approved and Resolution No. 4384 was adopted. As part of this approval, the Board directed staff to prepare and mail the Proposition 218 notices to customers. The approved budget included an overall sewer rate increase of 2.8 percent, which will be effective January 1, 2021. In compliance with the Proposition 218 requirements, notices were sent to all customers to inform them of their option to protest rate changes. The required public hearing is set for the October 7, 2020 Board Meeting where the Board will be considering protests. As of September 15, 2020, zero protest letters have been received. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The FY 2021 Budget covers increases from sewer providers, supports the CIP plan, and improves the District’s financial position. The FY 2021 adopted budget outlines the recommended changes in rates and rate structures. Customer sewer charges are based on a combination of the rates charged and volume of water used by the individual customer. STRATEGIC GOAL: Through well-established financial policies and wise management of funds, the District will continue to guarantee fiscal responsibility to its ratepayers and the community at large. LEGAL IMPACT: None. Attachments: A) Ordinance No. 578 Exhibit 1 – Section 53 Strike-through Exhibit 2 – Section 53 Proposed Exhibit 3 – Appendix A Strike-through Exhibit 4 – Appendix A Proposed B) Presentation C) Proposition 218 Notices D) Review of District’s Sewer Rates by HDR 1 ORDINANCE NO. 578 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING SECTION 53, CONDITIONS FOR SEWER SERVICE AND APPENDIX A 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 53, Conditions for Sewer Service; and Appendix A be amended as per Exhibits 1, 2, 3 & 4 to this resolution. NOW, THEREFORE, BE IT RESOLVED that the new proposed Section 53, Conditions for Sewer Service (Exhibit 2) and Appendix A (Exhibit 4) of the Code of Ordinances shall become effective on January 1, 2021. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting duly held this 7th day of October 2020, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: ________________________________ President ATTEST: ________________________ District Secretary Attachment A 53-1(1)See Appendix A, Section 53 for fees, rates, and charges. SECTION 53 CONDITIONS FOR SEWER SERVICE 53.01 CONDITIONS FOR ACQUISITION OF SEWER SERVICE CAPACITY Sewer service capacity may be acquired only for service to a specific address, parcel of land, or a land development project covered by an approved map. An approved map shall mean a recorded final map, a recorded parcel map or a tentative sub- division map that has been approved by the County or by a City, as applicable. A.District Acceptance of Sewer Facilities for Russell Square Area - Under an Agreement with Cal Dorado Development, Inc., dated June 28, 1981, the District accepted title to a sewer pump station, force main and appurtenances for a sewage system to provide sewer service to the residential dwelling units to be constructed within the parcels of land in San Diego County Tentative Parcel Map 17150. Under an Agreement with Cal Dorado Development, Inc., dated June 18, 1981, the District agreed to provide service to such parcels on the terms and conditions contained therein. On October 1, 1984, pursuant to Resolution No. 2139, the District Board of Directors accepted title to the facilities. 53.02 SERVICE AREAS Sewer service shall be furnished by the District only to property located in Improvement District No. 18 (ID 18) and the Russell Square Sewer Service Area. Sewer service to property located outside such areas may be furnished only upon annexation to ID 18 and payment of all applicable annexation fees. (See Appendix A, Section 9) A.Designation of Russell Square Sewer Area - The geographical area described on the District Map entitled "Russell Square Sewer Service Area," dated October 11, 1988, on file with the District Secretary, constitutes the Russell Square Sewer Service Area. 53.03 ACQUISITION OF SEWER CONNECTIONS FOR SERVICE Effective October 1, 2014, two separate sewer capacity fees have been established to ensure sewer customers do not pay for facilities twice. The first capacity fee applies to parcels within an ID that paid prior tax debt. The second capacity fee applies parcels outside an ID that have not paid the tax debt. The sewer capacity fees shall constitute the "base rate." For fees or charges after June 7, 2017, the base rate shall be adjusted on the first day of each calendar quarter for fluctuations in construction costs, as measured by the Engineering News Record Construction Cost Index for the Los Angeles Region. The ENR Construction Cost Index of 11,555.03 Exhibit 1 53-2 (1) See Appendix A, Section 53 for fees, rates, and charges. (as of April 1, 2017) shall be deemed the "base index." The adjustment shall be in an amount equal to the percentage change in the ENR Construction Cost Index from the base index for the period from April 1, 2017 to the date of payment. 1. Sewer Capacity Fee within an ID All new sewer connections for parcels within a sewer ID shall pay a capacity fee (1) for each Equivalent Dwelling Unit (EDU) of sewer service provided. The capacity fee is due at the time an application for sewer service is requested. The number of EDUs for the connection shall be as set forth in Section 53.08 of the Code. 2. Sewer Capacity Fee outside an ID All new sewer connections for parcels not within a sewer ID (requiring to be annexed into a sewer ID18 per Code Section 9.04 C.) shall pay a capacity fee (1) for each Equivalent Dwelling Unit (EDU) of sewer service provided. The capacity fee is due at the time an application for sewer service is requested. The number of EDUs for the connection shall be as set forth in Section 53.08 of the Code. B. Russell Square Pump Station 1. Sewer Connection Fee A connection fee (1) for each Equivalent Dwelling Unit (EDU) of sewer service provided through Russell Square Pump Station shall be collected. The connection fee is due at the time an application for sewer service is submitted. The number of EDUs for the connection shall be as set forth in Section 53.08 of the Code. The connection fee shall be used by the District solely for the maintenance, repair or replacement of the Russell Square Pump Station. (a) Exempt Parcels - The connection fee shall not apply to connections for sewer service to the parcels within the Tentative Parcel Map 17150. Such exempt parcels are currently identified as Assessor Parcel Nos. 497-011-41, 497-011-42, 497- 011-44, 497-011-46 and 497-011-47. 2. Monthly Sewer Service Charge A monthly sewer service charge (1) to cover normal operational costs of the Russell Square Pump Station and force mains shall be collected. This charge shall be reviewed by the Board of Directors from time to time to assure that such charges cover the costs for operation of the sewer facilities. 53-3 (1) See Appendix A, Section 53 for fees, rates, and charges. In addition, the customer for such service shall pay the monthly service charge (1) for sewer service set forth in Section 53.10 A and B of the Code. 53.04 CHARGES FOR INSTALLATION OF SEWER LATERALS Upon application for construction of one or more sewer laterals, the customer shall deposit with the District the estimated costs to be incurred by the District in connection with the instal- lation of the facilities required, as determined by the District. Upon completion of the work, the District shall calculate the actual costs incurred by the District in performing the work. If actual costs are less than the amount deposited, the District shall refund the balance of the deposit to the customer. If actual costs exceed the amount deposited, the customer shall reimburse the District for the additional costs. 53.05 PAYMENT OF FEES All fees prescribed in the Code shall become owing, due and payable at the time application is made to connect a premise to the sewer system of the District. The fees shall be paid to the District prior to the issuance of any permit authorizing the connection of such premise to the District sewer system. If the proposed connection cannot be made, the fee may be refunded when approved by the General Manager. 53.06 SEWER SERVICE USE CHANGES RESULTING IN INCREASED SYSTEM UTILIZATION The use of a sewer connection shall be limited to the type and number of EDUs authorized by the original wastewater discharge permit. Before adding any additional equivalent dwelling units, buildings, modifying existing buildings, or change of occupancy type, the property owner shall make a supplementary wastewater permit application to the District for such change in use and pay additional sewer annexation fees per EDU, if necessary, as may be applicable. Periodic inspection of the premises may be made by the District and if actual use is greater than estimated use, an assessment for additional annexation fees shall be assessed. (1) 53.07 WASTEWATER DISCHARGE PERMIT ISSUANCE AND LIMITATION A. A wastewater discharge permit shall be required for any property for which a request is made to discharge into the District sewage system. B. Every wastewater discharge permit shall expire by limitations and shall become null and void, if the construction or work authorized by such permit is not commenced within 120 days from date of issuance of such 53-4 (1) See Appendix A, Section 53 for fees, rates, and charges. wastewater discharge permit or if the construction or work authorized by such wastewater discharge permit is suspended or abandoned for a period of 120 days at any time after the work is commenced. C. Before such work can be recommenced, a new wastewater discharge permit application must be filed with the District. The District may reactivate the previous wastewater discharge permit provided that wastewater quantity and type is the same as the wastewater discharge allowed under the original permit, and provided further that such suspension and abandonment has not exceeded one year. Fees paid for the previous wastewater discharge permit may be credited toward the total permit fees required on the new permit application. Reactivation of the previous wastewater discharge permit shall be subject to District sewer capacity being available at the time of new application and subject to any additional costs or charges imposed during the period of such suspension or abandonment. 53.08 BASIS FOR DETERMINATION OF EQUIVALENT DWELLING UNITS (EDUs) The number of EDUs for sewer service shall be determined on the following basis: A. Residential Facilities EDUs Description 1 ▪ Single-family residence (Includes manufactured homes and mobile homes which are on private lots.) ▪ A secondary structure with a kitchen is considered an additional EDU ▪ Each individual living unit in apartments, multi- family housing and residential condominiums ▪ Each individual space in mobile homes and trailer Parks 53-5 (1) See Appendix A, Section 53 for fees, rates, and charges. B. Commercial/Industrial Facilities 1. Food Service Establishments EDUs Description 3 ▪ Take-out restaurants with disposable utensils, no dishwasher and no public restrooms ▪ Take-out restaurants with disposable utensils, no dishwasher and no public restrooms ▪ Miscellaneous food establishments – ice cream shops, yogurt shops, bakeries (sales on premise only) ▪ Take-out/eat-in restaurants with disposable utensils, but with seating and public restrooms ▪ Restaurants with reusable utensils, seating and public restrooms (0-18 seats) o Add 1.0 EDU for each additional 6 seat unit, or portion thereof 2. Hotels and Motels EDUs Description .38 Per living unit without kitchen .60 Per living unit with Kitchen 3. Commercial, Professional, Industrial Buildings and Establishments not specifically listed herein EDUs Description 1.2 For first 1,000 square feet AND +0.7 For each additional 1,000 square feet or portion thereof Applies to any office, store or industrial condominium or Establishments 1.2 +0.7 For first 1,000 square feet AND For each additional 1,000 square feet of gross building floor area. Portions less than 1,000 sq. ft. will be prorated. Applies to situations where the occupancy type or usage is unknown at the time of application for service. This shall include, but not be limited to, shopping centers, industrial parks and professional office buildings. 1.0 Self-service laundry per washer 53-6 (1) See Appendix A, Section 53 for fees, rates, and charges. 4. Convalescent Homes EDUs Description 0.7/bed Skilled nursing care facilities, psychological hospitals, convalescent hospitals; licensed by the applicable Governmental Agency. 0.5/bed Community Care Facilities with 16 or more beds licensed by the applicable Governmental Agency. 1.0 Community Care Homes with six or fewer total residents, including resident staff and housekeepers (to be the same EDU as a single family residence). C. Other commercial, industrial and other types of business establishments not included in 53.08 B.1 through 53.08 B.4 If the establishment is not included in 53.08 B.1 through 53.08 B.4 or if the EDUs specified in 53.08 B.1 through 53.08 B.4 are not representative of actual flow due to the number of employees or type of operation, the number of EDUs shall be determined in each case by the list of commercial strengths as defined by the State Water Resources Control Board (SWRCB) or by the General Manager and shall be based upon the estimated volume and type of wastewater discharge into the sewer. Examples of commercial, industrial and other business establishments include, but are not limited to, bottling works, supermarkets, markets, deli/markets, convenience stores, hospitals, laundries (other than self-service laundries), automobile service stations, mortuaries, day- care centers, bars and pool halls. 53.09 TRANSFER, ASSIGNMENT, OR RESALE OF SEWER CONNECTION RIGHTS EDU sewer connection rights obtained by a customer may not be sold, transferred, or assigned separately from ownership of the real property for which they were obtained, unless otherwise stated in an agreement with the District. 53.10 DEFINITIONS OF RESIDENTIAL AND MULTI-RESIDENTIAL SEWER SERVICE RATES, CHARGES AND FEES All District sewer rates, charges, and fees are subject to Board approval of rate increases to residential and multi-residential sewer services billed on or after January 1, 2019 2021 and may apply to sewer services as early as the beginning of December 2018 2020 and periodically thereafter through December 31, 20232025. The increases shall be the amount sufficient to cover cost increases 53-7 (1) See Appendix A, Section 53 for fees, rates, and charges. related to operation and maintenance, but not to exceed 10% per year. Five-year Periodic Pass-through Rate Increases or Decreases from District Wholesalers - All District sewer rates, charges, and fees are subject to periodic rate changes from the District’s public agency wholesalers for a five-year period beginning January 1, 2019 2021 through December 31, 20232025. Set-up Fees for Accounts - A set-up fee (1) shall be charged for each account transferred to another customer. Three-year Winter Average - Sewer rates shall be based on the average of the customer’s “Three-Year Winter Average” water consumption, measured in units of hundred cubic feet (HCF). The winter average period is January through April. The three-year winter average is calculated by adding the four months of water consumption and dividing the resulting amount by four for each of the preceding three years and then taking the average of those three years. This average is then reduced by a 15% usage discount, recognizing that not all water used flows into the sewer system. The sewer rate is multiplied by the “Three-Year Winter Average” calculation for each customer (after the above noted 15% discount) and this amount is added to the monthly fixed sewer system charge applicable to the size of meter. The resulting amount shall be charged on a monthly basis and fixed for an entire calendar year, until a new “Three-Year Winter Average” is determined for the following year. Winter Average – Sewer rates shall be based on the “Winter Average” water consumption, measured in units of hundred cubic feet (HCF). The winter average period is January through April. The winter average is calculated by adding the four months of water consumption for the preceding winter and dividing the resulting amount by four. This average is then reduced by a 15% usage discount, recognizing that not all water used flows into the sewer system. The sewer rate is multiplied by the “Winter Three-year Winter Average” calculation for each customer (after the above noted 15% discount) and this amount is added to the monthly fixed sewer system charge applicable to the size of meter. The resulting amount shall be charged on a monthly basis and fixed for an entire calendar year, until a new “Three-year Winter Average” is determined for the following year. (1) A. Residential Rate Charges 1. Defined as: Sewer service for individually metered residential households. 53-8 (1) See Appendix A, Section 53 for fees, rates, and charges. 2. The monthly sewer bill is calculated by adding the system charge plus the sewer rate as described in Section 53.10 above. 2. 3. The maximum “Three-year Winter Average” for individually metered residential customers is 30 units (after the 15% discount). 3. 4. Monthly Residential Sewer Charges without three years of Consumption History: The average residential sewer rate shall be determined by calculating the total monthly sewer rate for all residential customers and dividing it by the number of residential customers. The monthly average residential sewer rate is then added to the monthly fixed sewer system charge which shall then be used to determine the total monthly amount for residential customers with less than three months of winter usage, customers using well water or other unmetered water. New customers with less than three years of history but more than three months of winter usage in any given year, will have their “Three-Year Winter Average” determined by the average of the winter water usage for the total number of years they have been customers of record.(1) 4. Monthly Residential Sewer Charges without Consumption History: The average residential sewer rate shall be determined by calculating the total monthly sewer rate for all residential customers and dividing it by the number of residential customers. The monthly average residential sewer rate is then added to the monthly fixed sewer system charge which shall then be used to determine the total monthly amount for residential customers with no prior winter consumption, customers using well water or other unmetered water.(1) B. Multi-Residential Rate Charges 1. Defined as: Sewer service for master metered water service for multi-residential households including for example; duplexes, townhomes, apartments, and mobile homes. 2. The monthly sewer bill for the complex is calculated by adding the monthly fixed sewer system charge based on meter size, plus the sewer rates multiplied by the three-year winter average, for the entire complex. (1) Note: There is no cap on consumption for multi- residential customers. 3. Monthly Multi-Residential Sewer Charges without Consumption History: The multi-residential sewer rate 53-9 (1) See Appendix A, Section 53 for fees, rates, and charges. shall be determined by calculating the total monthly sewer rate for all multi-residential customers and dividing it by the number of multi-residential dwelling units. The monthly sewer rate per dwelling unit is multiplied by the new customer’s number of dwelling units and this shall be added to the monthly fixed sewer system charges, based on meter size, to determine the monthly rate. This is applicable to new complexes that do not have a prior winter consumption history.(1) New multi-residential customers with less than three years of history but more than three months of winter usage in any given year, will have their “Three-Year Winter Average” determined by the average of the winter water usage for the total number of years they have been customers of record. 53.11 DEFINITIONS OF COMMERCIAL AND INDUSTRIAL SEWER SERVICE RATES, CHARGES AND FEES All District sewer rates, charges, and fees are subject to Board approval of rate increases to commercial and industrial sewer services billed on or after January 1, 202119 and may apply to sewer services as early as the beginning of December 202018 and periodically thereafter through December 31, 20232025. The increases shall be the amount sufficient to cover cost increases related to operation and maintenance, but not to exceed 10% per year. Five-year Periodic Pass-through Rate Increases or Decreases from District Wholesalers - All District sewer rates, fees, and charges, are subject to periodic rate changes from the District’s public agency wholesalers for a five-year period beginning January 1, 2019 2021 through December 31, 20232025. Set-up Fees for Accounts - A set-up fee (1) shall be charged for each account transferred to another customer. Average Annual Consumption - The Average Annual Consumption, measured in units of hundred cubic feet (HCF). The annual consumption period is January through December of the preceding year divided by the number of months of consumption. This average is reduced by a 15% usage discount which recognizes that not all water used flows into the sewer system. Sewer Rate - The rate (1) is determined by the commercial customer’s sewer strength category in which they are assigned (low strength, medium strength or high strength). Monthly Fixed Sewer System Charges - The monthly fixed sewer system charge is determined by the commercial customer’s water meter size. (1) Strength Factor - The State Water Resources Control Board (SWRCB) has grouped commercial customers into various categories 53-10 (1) See Appendix A, Section 53 for fees, rates, and charges. and has identified Strength Factors for each of these business categories. The standard of measure for Strength Factors is the typical sewer strength of a single‐family residence which has strength factor of 1. A. Commercial Rate Charges 1. The monthly sewer bill for commercial sewer customers is calculated by multiplying the average annual consumption, reduced by 15%, by the sewer rates based on strength plus the monthly fixed sewer system charges based on the customer’s water meter size. (1) 2. For new commercial sewer customers without consumption history, staff shall make a determination of the average annual consumption to be used until a year’s consumption data can be collected. The determination shall be based on the prior owner or tenant of the sewer connection, or based on the most similar type of current business operation. If the customer does not agree with staff’s recommendation, the customer may request an adjustment in writing, and direct it to the General Manager. B. Industrial and Other Users 1. Charges determined by the Board of Directors on a case-by-case basis. Monthly fixed sewer system charges shall commence upon installation of the water meter to serve the premises receiving the sewer service, upon connection to the District sewer system, upon start of occupancy of the premises to be served, or one year after the date the application for sewer service is filed. If a sewer service connection has been obtained and if sewer service will not be used until sometime after installation of the water meter, commencement of the sewer system charge may be deferred until the later date only upon prior approval of the General Manager. C. Commercial User Classifications Commercial sewer service customers are subject to periodic inspection of the premises by the District for verification of proper sewer strength classification. In addition to such periodic inspections, strength classifications will be reviewed periodically, at the discretion of the District. If warranted following a periodic inspection, periodic classification review, or a change in the nature of a customer’s business and/or use of the property, customers may be reclassified to reflect their current business operations and proper sewer strength, at the discretion of the District and consistent with the standards set forth herein and in the State Water Resources Control Board 53-11 (1) See Appendix A, Section 53 for fees, rates, and charges. (SWRCB) listing for sewer strength. 1. Low-Strength Commercial = 1.0 Strength Factor Car wash General office and buildings Barber and beauty shops Department, retail stores and general commercial Hospitals and convalescent homes Public Laundromats and dry cleaners Professional office or office building Warehouse Bars without dining facilities Churches Schools (Elementary, junior & High Schools, Colleges) Other uses having a similar strength as determined by the District 2. Medium-Strength Commercial = 2.0 Strength Factor Hotels without dining facilities or cooking facilities Auto repair/sales shop and service station Shopping centers Other uses having a similar strength as determined by the District 3. High-Strength Commercial = 4.0 Strength Factor Bakery or bakery with deli Hotel with dining facilities Restaurants and bars with food Grocery stores with onsite butcher and/or bakery Other uses having a similar strength as determined by the District 53.12 ISSUANCE AND PAYMENT OF SEWER BILLS A. Issuance of Statements: Statements for sewer service or other charges will be mailed monthly or as soon as practical, after the applicable charges have been determined. B. Due Date: Each statement issued by the District for such charges shall be due and payable on the date of mailing or other presentation to the customer. C. Final Payment Date: All charges in each statement must be paid on or before the final payment date shown on the statement, which shall be at least 20 calendar days following the date of mailing or presentation of the statement. D. Place of Payment: Payments shall not be credited to a customer’s account until cash, check, credit card, draft, electronic funds transfer, money order or any other 53-12 (1) See Appendix A, Section 53 for fees, rates, and charges. acceptable form of payment that will be honored by the bank has been received by the District at the District business office during regular office hours. Deposit of payment in the mail or at a location other than the District business office shall not be credited to a customer’s account until received at the business office. E. Returned Check Charges: A returned payment charge (see Appendix A, Section 34 for charge) shall be added to a customer’s account in each instance where payment has been made to the District with a check, draft, credit card or any other acceptable form of payment that has not been honored upon presentment to the bank upon which it is drawn. 53.13 DELINQUENT ACCOUNTS A. Requirement of Deposit Due to Repeated Delinquencies: If payments on a customer account have become delinquent five or more times, the General Manager, Chief Financial Officer, or any person delegated by the General Manager, shall be authorized to require the customer to make a deposit with the District, in cash or any other form satisfactory to the General Manager. The deposit amount shall be established at the discretion of the General Manager and the Chief Financial Officer, but shall not exceed two times the highest bill during the twelve (12) months preceding the date of demand for a deposit. B. Handling of Deposit: A deposit shall not earn interest and shall only be applied to reduce or satisfy amounts due the District in the event of termination of service. A deposit does not constitute payment for service bills and the customer shall be required to comply with bill payment requirements to continue receiving service. C. Refund of Deposit: A deposit required under this Section shall be refunded to the customer as provided in Section 25.04 B of the Code. 53-1(1)See Appendix A, Section 53 for fees, rates, and charges. SECTION 53 CONDITIONS FOR SEWER SERVICE 53.01 CONDITIONS FOR ACQUISITION OF SEWER SERVICE CAPACITY Sewer service capacity may be acquired only for service to a specific address, parcel of land, or a land development project covered by an approved map. An approved map shall mean a recorded final map, a recorded parcel map or a tentative sub- division map that has been approved by the County or by a City, as applicable. A.District Acceptance of Sewer Facilities for Russell Square Area - Under an Agreement with Cal Dorado Development, Inc., dated June 28, 1981, the District accepted title to a sewer pump station, force main and appurtenances for a sewage system to provide sewer service to the residential dwelling units to be constructed within the parcels of land in San Diego County Tentative Parcel Map 17150. Under an Agreement with Cal Dorado Development, Inc., dated June 18, 1981, the District agreed to provide service to such parcels on the terms and conditions contained therein. On October 1, 1984, pursuant to Resolution No. 2139, the District Board of Directors accepted title to the facilities. 53.02 SERVICE AREAS Sewer service shall be furnished by the District only to property located in Improvement District No. 18 (ID 18) and the Russell Square Sewer Service Area. Sewer service to property located outside such areas may be furnished only upon annexation to ID 18 and payment of all applicable annexation fees. (See Appendix A, Section 9) A.Designation of Russell Square Sewer Area - The geographical area described on the District Map entitled "Russell Square Sewer Service Area," dated October 11, 1988, on file with the District Secretary, constitutes the Russell Square Sewer Service Area. 53.03 ACQUISITION OF SEWER CONNECTIONS FOR SERVICE Effective October 1, 2014, two separate sewer capacity fees have been established to ensure sewer customers do not pay for facilities twice. The first capacity fee applies to parcels within an ID that paid prior tax debt. The second capacity fee applies parcels outside an ID that have not paid the tax debt. The sewer capacity fees shall constitute the "base rate." For fees or charges after June 7, 2017, the base rate shall be adjusted on the first day of each calendar quarter for fluctuations in construction costs, as measured by the Engineering News Record Construction Cost Index for the Los Angeles Region. The ENR Construction Cost Index of 11,555.03 Exhibit 2 53-2 (1) See Appendix A, Section 53 for fees, rates, and charges. (as of April 1, 2017) shall be deemed the "base index." The adjustment shall be in an amount equal to the percentage change in the ENR Construction Cost Index from the base index for the period from April 1, 2017 to the date of payment. 1. Sewer Capacity Fee within an ID All new sewer connections for parcels within a sewer ID shall pay a capacity fee (1) for each Equivalent Dwelling Unit (EDU) of sewer service provided. The capacity fee is due at the time an application for sewer service is requested. The number of EDUs for the connection shall be as set forth in Section 53.08 of the Code. 2. Sewer Capacity Fee outside an ID All new sewer connections for parcels not within a sewer ID (requiring to be annexed into a sewer ID18 per Code Section 9.04 C.) shall pay a capacity fee (1) for each Equivalent Dwelling Unit (EDU) of sewer service provided. The capacity fee is due at the time an application for sewer service is requested. The number of EDUs for the connection shall be as set forth in Section 53.08 of the Code. B. Russell Square Pump Station 1. Sewer Connection Fee A connection fee (1) for each Equivalent Dwelling Unit (EDU) of sewer service provided through Russell Square Pump Station shall be collected. The connection fee is due at the time an application for sewer service is submitted. The number of EDUs for the connection shall be as set forth in Section 53.08 of the Code. The connection fee shall be used by the District solely for the maintenance, repair or replacement of the Russell Square Pump Station. (a) Exempt Parcels - The connection fee shall not apply to connections for sewer service to the parcels within the Tentative Parcel Map 17150. Such exempt parcels are currently identified as Assessor Parcel Nos. 497-011-41, 497-011-42, 497- 011-44, 497-011-46 and 497-011-47. 2. Monthly Sewer Service Charge A monthly sewer service charge (1) to cover normal operational costs of the Russell Square Pump Station and force mains shall be collected. This charge shall be reviewed by the Board of Directors from time to time to assure that such charges cover the costs for operation of the sewer facilities. 53-3 (1) See Appendix A, Section 53 for fees, rates, and charges. In addition, the customer for such service shall pay the monthly service charge (1) for sewer service set forth in Section 53.10 A and B of the Code. 53.04 CHARGES FOR INSTALLATION OF SEWER LATERALS Upon application for construction of one or more sewer laterals, the customer shall deposit with the District the estimated costs to be incurred by the District in connection with the instal- lation of the facilities required, as determined by the District. Upon completion of the work, the District shall calculate the actual costs incurred by the District in performing the work. If actual costs are less than the amount deposited, the District shall refund the balance of the deposit to the customer. If actual costs exceed the amount deposited, the customer shall reimburse the District for the additional costs. 53.05 PAYMENT OF FEES All fees prescribed in the Code shall become owing, due and payable at the time application is made to connect a premise to the sewer system of the District. The fees shall be paid to the District prior to the issuance of any permit authorizing the connection of such premise to the District sewer system. If the proposed connection cannot be made, the fee may be refunded when approved by the General Manager. 53.06 SEWER SERVICE USE CHANGES RESULTING IN INCREASED SYSTEM UTILIZATION The use of a sewer connection shall be limited to the type and number of EDUs authorized by the original wastewater discharge permit. Before adding any additional equivalent dwelling units, buildings, modifying existing buildings, or change of occupancy type, the property owner shall make a supplementary wastewater permit application to the District for such change in use and pay additional sewer annexation fees per EDU, if necessary, as may be applicable. Periodic inspection of the premises may be made by the District and if actual use is greater than estimated use, an assessment for additional annexation fees shall be assessed. (1) 53.07 WASTEWATER DISCHARGE PERMIT ISSUANCE AND LIMITATION A. A wastewater discharge permit shall be required for any property for which a request is made to discharge into the District sewage system. B. Every wastewater discharge permit shall expire by limitations and shall become null and void, if the construction or work authorized by such permit is not commenced within 120 days from date of issuance of such 53-4 (1) See Appendix A, Section 53 for fees, rates, and charges. wastewater discharge permit or if the construction or work authorized by such wastewater discharge permit is suspended or abandoned for a period of 120 days at any time after the work is commenced. C. Before such work can be recommenced, a new wastewater discharge permit application must be filed with the District. The District may reactivate the previous wastewater discharge permit provided that wastewater quantity and type is the same as the wastewater discharge allowed under the original permit, and provided further that such suspension and abandonment has not exceeded one year. Fees paid for the previous wastewater discharge permit may be credited toward the total permit fees required on the new permit application. Reactivation of the previous wastewater discharge permit shall be subject to District sewer capacity being available at the time of new application and subject to any additional costs or charges imposed during the period of such suspension or abandonment. 53.08 BASIS FOR DETERMINATION OF EQUIVALENT DWELLING UNITS (EDUs) The number of EDUs for sewer service shall be determined on the following basis: A. Residential Facilities EDUs Description 1 ▪ Single-family residence (Includes manufactured homes and mobile homes which are on private lots.) ▪ A secondary structure with a kitchen is considered an additional EDU ▪ Each individual living unit in apartments, multi- family housing and residential condominiums ▪ Each individual space in mobile homes and trailer Parks 53-5 (1) See Appendix A, Section 53 for fees, rates, and charges. B. Commercial/Industrial Facilities 1. Food Service Establishments EDUs Description 3 ▪ Take-out restaurants with disposable utensils, no dishwasher and no public restrooms ▪ Take-out restaurants with disposable utensils, no dishwasher and no public restrooms ▪ Miscellaneous food establishments – ice cream shops, yogurt shops, bakeries (sales on premise only) ▪ Take-out/eat-in restaurants with disposable utensils, but with seating and public restrooms ▪ Restaurants with reusable utensils, seating and public restrooms (0-18 seats) o Add 1.0 EDU for each additional 6 seat unit, or portion thereof 2. Hotels and Motels EDUs Description .38 Per living unit without kitchen .60 Per living unit with Kitchen 3. Commercial, Professional, Industrial Buildings and Establishments not specifically listed herein EDUs Description 1.2 For first 1,000 square feet AND +0.7 For each additional 1,000 square feet or portion thereof Applies to any office, store or industrial condominium or Establishments 1.2 +0.7 For first 1,000 square feet AND For each additional 1,000 square feet of gross building floor area. Portions less than 1,000 sq. ft. will be prorated. Applies to situations where the occupancy type or usage is unknown at the time of application for service. This shall include, but not be limited to, shopping centers, industrial parks and professional office buildings. 1.0 Self-service laundry per washer 53-6 (1) See Appendix A, Section 53 for fees, rates, and charges. 4. Convalescent Homes EDUs Description 0.7/bed Skilled nursing care facilities, psychological hospitals, convalescent hospitals; licensed by the applicable Governmental Agency. 0.5/bed Community Care Facilities with 16 or more beds licensed by the applicable Governmental Agency. 1.0 Community Care Homes with six or fewer total residents, including resident staff and housekeepers (to be the same EDU as a single family residence). C. Other commercial, industrial and other types of business establishments not included in 53.08 B.1 through 53.08 B.4 If the establishment is not included in 53.08 B.1 through 53.08 B.4 or if the EDUs specified in 53.08 B.1 through 53.08 B.4 are not representative of actual flow due to the number of employees or type of operation, the number of EDUs shall be determined in each case by the list of commercial strengths as defined by the State Water Resources Control Board (SWRCB) or by the General Manager and shall be based upon the estimated volume and type of wastewater discharge into the sewer. Examples of commercial, industrial and other business establishments include, but are not limited to, bottling works, supermarkets, markets, deli/markets, convenience stores, hospitals, laundries (other than self-service laundries), automobile service stations, mortuaries, day- care centers, bars and pool halls. 53.09 TRANSFER, ASSIGNMENT, OR RESALE OF SEWER CONNECTION RIGHTS EDU sewer connection rights obtained by a customer may not be sold, transferred, or assigned separately from ownership of the real property for which they were obtained, unless otherwise stated in an agreement with the District. 53.10 DEFINITIONS OF RESIDENTIAL AND MULTI-RESIDENTIAL SEWER SERVICE RATES, CHARGES AND FEES All District sewer rates, charges, and fees are subject to Board approval of rate increases to residential and multi-residential sewer services billed on or after January 1, 2021 and may apply to sewer services as early as the beginning of December 2020 and periodically thereafter through December 31, 2025. The increases shall be the amount sufficient to cover cost increases 53-7 (1) See Appendix A, Section 53 for fees, rates, and charges. related to operation and maintenance, but not to exceed 10% per year. Five-year Periodic Pass-through Rate Increases or Decreases from District Wholesalers - All District sewer rates, charges, and fees are subject to periodic rate changes from the District’s public agency wholesalers for a five-year period beginning January 1, 2021 through December 31, 2025. Set-up Fees for Accounts - A set-up fee (1) shall be charged for each account transferred to another customer. Three-year Winter Average - Sewer rates shall be based on the average of the customer’s “Three-Year Winter Average” water consumption, measured in units of hundred cubic feet (HCF). The winter average period is January through April. The three-year winter average is calculated by adding the four months of water consumption and dividing the resulting amount by four for each of the preceding three years and then taking the average of those three years. This average is then reduced by a 15% usage discount, recognizing that not all water used flows into the sewer system. The sewer rate is multiplied by the “Three-Year Winter Average” calculation for each customer (after the above noted 15% discount) and this amount is added to the monthly fixed sewer system charge applicable to the size of meter. The resulting amount shall be charged on a monthly basis and fixed for an entire calendar year, until a new “Three-Year Winter Average” is determined for the following year. The sewer rate is multiplied by the “Three-year Winter Average” calculation for each customer (after the above noted 15% discount) and this amount is added to the monthly fixed sewer system charge applicable to the size of meter. The resulting amount shall be charged on a monthly basis and fixed for an entire calendar year, until a new “Three-year Winter Average” is determined for the following year. (1) A. Residential Rate Charges 1. Defined as: Sewer service for individually metered residential households. 2. The monthly sewer bill is calculated by adding the system charge plus the sewer rate as described in Section 53.10 above. 3. The maximum “Three-year Winter Average” for individually metered residential customers is 30 units (after the 15% discount). 4. Monthly Residential Sewer Charges without three years of Consumption History: The average residential sewer rate shall be determined by calculating the total monthly sewer rate for all residential customers and dividing it 53-8 (1) See Appendix A, Section 53 for fees, rates, and charges. by the number of residential customers. The monthly average residential sewer rate is then added to the monthly fixed sewer system charge which shall then be used to determine the total monthly amount for residential customers with less than three months of winter usage, customers using well water or other unmetered water. New customers with less than three years of history but more than three months of winter usage in any given year, will have their “Three-Year Winter Average” determined by the average of the winter water usage for the total number of years they have been customers of record.(1) B. Multi-Residential Rate Charges 1. Defined as: Sewer service for master metered water service for multi-residential households including for example; duplexes, townhomes, apartments, and mobile homes. 2. The monthly sewer bill for the complex is calculated by adding the monthly fixed sewer system charge based on meter size, plus the sewer rates multiplied by the three-year winter average, for the entire complex. (1) Note: There is no cap on consumption for multi- residential customers. 3. Monthly Multi-Residential Sewer Charges without Consumption History: The multi-residential sewer rate shall be determined by calculating the total monthly sewer rate for all multi-residential customers and dividing it by the number of multi-residential dwelling units. The monthly sewer rate per dwelling unit is multiplied by the new customer’s number of dwelling units and this shall be added to the monthly fixed sewer system charges, based on meter size, to determine the monthly rate. This is applicable to new complexes that do not have a prior winter consumption history.(1) New multi-residential customers with less than three years of history but more than three months of winter usage in any given year, will have their “Three-Year Winter Average” determined by the average of the winter water usage for the total number of years they have been customers of record. 53.11 DEFINITIONS OF COMMERCIAL AND INDUSTRIAL SEWER SERVICE RATES, CHARGES AND FEES All District sewer rates, charges, and fees are subject to Board approval of rate increases to commercial and industrial sewer services billed on or after January 1, 2021 and may apply to sewer services as early as the beginning of December 2020 and periodically thereafter through December 31, 2025. The 53-9 (1) See Appendix A, Section 53 for fees, rates, and charges. increases shall be the amount sufficient to cover cost increases related to operation and maintenance, but not to exceed 10% per year. Five-year Periodic Pass-through Rate Increases or Decreases from District Wholesalers - All District sewer rates, fees, and charges, are subject to periodic rate changes from the District’s public agency wholesalers for a five-year period beginning January 1, 2021 through December 31, 2025. Set-up Fees for Accounts - A set-up fee (1) shall be charged for each account transferred to another customer. Average Annual Consumption - The Average Annual Consumption, measured in units of hundred cubic feet (HCF). The annual consumption period is January through December of the preceding year divided by the number of months of consumption. This average is reduced by a 15% usage discount which recognizes that not all water used flows into the sewer system. Sewer Rate - The rate (1) is determined by the commercial customer’s sewer strength category in which they are assigned (low strength, medium strength or high strength). Monthly Fixed Sewer System Charges - The monthly fixed sewer system charge is determined by the commercial customer’s water meter size. (1) Strength Factor - The State Water Resources Control Board (SWRCB) has grouped commercial customers into various categories and has identified Strength Factors for each of these business categories. The standard of measure for Strength Factors is the typical sewer strength of a single‐family residence which has strength factor of 1. A. Commercial Rate Charges 1. The monthly sewer bill for commercial sewer customers is calculated by multiplying the average annual consumption, reduced by 15%, by the sewer rates based on strength plus the monthly fixed sewer system charges based on the customer’s water meter size. (1) 2. For new commercial sewer customers without consumption history, staff shall make a determination of the average annual consumption to be used until a year’s consumption data can be collected. The determination shall be based on the prior owner or tenant of the sewer connection, or based on the most similar type of current business operation. If the customer does not agree with staff’s recommendation, the customer may request an adjustment in writing, and direct it to the General Manager. 53-10 (1) See Appendix A, Section 53 for fees, rates, and charges. B. Industrial and Other Users 1. Charges determined by the Board of Directors on a case-by-case basis. Monthly fixed sewer system charges shall commence upon installation of the water meter to serve the premises receiving the sewer service, upon connection to the District sewer system, upon start of occupancy of the premises to be served, or one year after the date the application for sewer service is filed. If a sewer service connection has been obtained and if sewer service will not be used until sometime after installation of the water meter, commencement of the sewer system charge may be deferred until the later date only upon prior approval of the General Manager. C. Commercial User Classifications Commercial sewer service customers are subject to periodic inspection of the premises by the District for verification of proper sewer strength classification. In addition to such periodic inspections, strength classifications will be reviewed periodically, at the discretion of the District. If warranted following a periodic inspection, periodic classification review, or a change in the nature of a customer’s business and/or use of the property, customers may be reclassified to reflect their current business operations and proper sewer strength, at the discretion of the District and consistent with the standards set forth herein and in the State Water Resources Control Board (SWRCB) listing for sewer strength. 1. Low-Strength Commercial = 1.0 Strength Factor Car wash General office and buildings Barber and beauty shops Department, retail stores and general commercial Hospitals and convalescent homes Public Laundromats and dry cleaners Professional office or office building Warehouse Bars without dining facilities Churches Schools (Elementary, junior & High Schools, Colleges) Other uses having a similar strength as determined by the District 2. Medium-Strength Commercial = 2.0 Strength Factor Hotels without dining facilities or cooking facilities 53-11 (1) See Appendix A, Section 53 for fees, rates, and charges. Auto repair/sales shop and service station Shopping centers Other uses having a similar strength as determined by the District 3. High-Strength Commercial = 4.0 Strength Factor Bakery or bakery with deli Hotel with dining facilities Restaurants and bars with food Grocery stores with onsite butcher and/or bakery Other uses having a similar strength as determined by the District 53.12 ISSUANCE AND PAYMENT OF SEWER BILLS A. Issuance of Statements: Statements for sewer service or other charges will be mailed monthly or as soon as practical, after the applicable charges have been determined. B. Due Date: Each statement issued by the District for such charges shall be due and payable on the date of mailing or other presentation to the customer. C. Final Payment Date: All charges in each statement must be paid on or before the final payment date shown on the statement, which shall be at least 20 calendar days following the date of mailing or presentation of the statement. D. Place of Payment: Payments shall not be credited to a customer’s account until cash, check, credit card, draft, electronic funds transfer, money order or any other acceptable form of payment that will be honored by the bank has been received by the District at the District business office during regular office hours. Deposit of payment in the mail or at a location other than the District business office shall not be credited to a customer’s account until received at the business office. E. Returned Check Charges: A returned payment charge (see Appendix A, Section 34 for charge) shall be added to a customer’s account in each instance where payment has been made to the District with a check, draft, credit card or any other acceptable form of payment that has not been honored upon presentment to the bank upon which it is drawn. 53.13 DELINQUENT ACCOUNTS A. Requirement of Deposit Due to Repeated Delinquencies: If payments on a customer account have become delinquent five or more times, the General Manager, Chief Financial Officer, or any person delegated by the General Manager, shall be 53-12 (1) See Appendix A, Section 53 for fees, rates, and charges. authorized to require the customer to make a deposit with the District, in cash or any other form satisfactory to the General Manager. The deposit amount shall be established at the discretion of the General Manager and the Chief Financial Officer, but shall not exceed two times the highest bill during the twelve (12) months preceding the date of demand for a deposit. B. Handling of Deposit: A deposit shall not earn interest and shall only be applied to reduce or satisfy amounts due the District in the event of termination of service. A deposit does not constitute payment for service bills and the customer shall be required to comply with bill payment requirements to continue receiving service. C. Refund of Deposit: A deposit required under this Section shall be refunded to the customer as provided in Section 25.04 B of the Code. Section #Code #Fee Description Meter Size 9 9.04 A.1.District Annexation Processing Fee $857.00 9.04 B. Annexation Fees for Water Annexations into Otay Water District Boundaries Districtwide Annexation Fee 3/4"$2,106.75 1"$5,266.87 1-1/2"$10,533.75 2"$16,854.00 3"$33,708.00 4 $52,668.75 6"$105,337.50 8"$168,540.00 10"$242,276.25 9.04 C.4. Annexation Fees for Annexations to Sewer Improvement Districts per EDU $1,152.48 10 10.01 Waiver Request $50.00 23 23.04 Backflow Certification - Second Notification $10.00 - Third Notification $25.00 - Third Notification (hand delivered)$45.00 - Reconnection $50.00 - Reconnection (if test performed with technician present)$150.00 - Initial Filing Fee (New applicants for addition to the list of approved backflow prevention device testers)$25.00 - Renewal Filing Fee (to remain on list of approved backflow prevention device testers)Annually $10.00 25 25.03 A.Set-up Fees for Accounts $15.00 25 25.03 B. Monthly MWD & CWA Fixed System Charges (1)3/4"$16.36 1"$30.38 1-1/2"$68.67 2"$116.81 3"$248.44 Otay Water District Appendix A Charges (1)All Water used in December and billed in January 2021. Exhibit 3 Section #Code #Fee Description Meter Size Charges 25 25.03 B. Monthly MWD & CWA Fixed System Charges (1) (continued)4" $397.83 6" $814.38 8" $1,315.14 10" $1,892.97 25 25.03 C.1. Domestic Residential Monthly Fixed System Charges (1)3/4" $19.27 1" $27.24 1-1/2" $47.12 2" $70.98 25 25.03 C.2. Multi-Residential Monthly Fixed System Charges (1)3/4" $42.38 1" $59.84 1-1/2" $103.55 2" $155.94 3" $295.73 4" $453.03 6" $890.03 8" $1,414.36 10" $2,026.07 25 25.03 C.3. Business and Publicly-Owned Monthly Fixed System Charges (1)3/4" $39.92 1" $56.37 1-1/2" $97.54 2" $146.90 3" $278.57 4" $426.73 6" $838.39 8" $1,332.27 10" $1,908.45 25 25.03 C.4.3/4" $33.71 1" $47.61 1-1/2" $82.38 2" $124.04 3" $235.25 4" $360.40 6" $708.03 8" $1,125.15 10" $1,611.76 Irrigation and Commercial Agricultural Monthly Fixed System Charges (1) (1) All Water used in December and billed in January 2021. Section #Code #Fee Description Meter Size Charges 25 25.03 C.5. - Irrigation 3/4" $35.07 1" $49.53 1-1/2" $85.71 2" $129.06 3" $244.76 4" $374.97 6" $747.91 8" $1,170.62 10" $1,676.89 25 25.03 C.6. - Commercial 3/4" $41.54 1" $58.65 1-1/2" $101.51 2" $152.88 3" $289.91 4" $444.11 6" $872.49 8" $1,386.49 10" $1,986.14 25 25.03 D.1.(b) Domestic Residential Water Rates (1)Unit Charge 1-10 $3.38 11-22 $6.04 23 or more $7.79 25 25.03 D.2.(b) Multi-Residential Water Rates - Per Dwelling Unit (1)0-4 $3.16 5-9 $5.73 10 or more $7.05 25 25.03 D.3.(b) Business and Publicly-Owned Water Rates (1)All Units $4.00 25 25.03 D.4.(c) Irrigation and Commercial Agricultural Using Potable Water Rates (1)All Units $5.84 25 25.03 D.5.(c)Recycled Irrigation Water Rates (1)All Units $4.80 25 25.03 D.6.(c)Recycled Commercial Water Rates (1)All Units $3.40 (1) All Water used in December and billed in January 2021. Recycled Monthly Fixed System Charges (1) Recycled Monthly Fixed System Charges (1) Section #Code #Fee Description Meter Size Charges 25 25.03 D.7.(b) Potable Temporary and Construction Water Service Rates (1)All Units $11.68 25 25.03 D.8.(b) Recycled Temporary and Construction Water Service Rates (1)All Units $9.60 25 25.03 D.10.(b) Tank Trucks Water Rates (1)All Units $11.68 25 25.03 D.11.(c) Application Fee for Water Service Outside District Boundaries $500.00 25 25.03 D.11.(d) Water Rate for Service Outside District Boundaries (1)All Units $11.68 25 25.03 D.12.(b) Application Fee for Water Service Outside an Improvement District $275.00 25 25.03 D.12.(c) Water Rate for Service Outside Improvement District (1)All Units $11.68 25 25.03 D.13.(c) Fire Service Monthly Charge 3" or less $23.03 more than 4"$31.03 25 25.03 D.14.(b)Government Per Unit $0.42 25 25.03 D.15.(b)Interim Service Water Rate(1)All Units $11.68 25 25.03 E.Energy Charges for Pumping Water (1) Per 100 ft of lift over 450 ft per unit $0.06 25 25.04 A.Deposits for Non-Property Owners 3/4"$100.00 1"$200.00 1-1/2"$250.00 2"$400.00 3"$1,000.00 4"$1,350.00 6"$3,300.00 8"$7,000.00 10"$10,000.00 (1) All Water used in December and billed in January 2021. Section #Code #Fee Description Meter Size Charges 28 28.01 B.1.Capacity Fees and Zone Charge Districtwide Capacity Fee - All IDs excluding Triad 3/4" $7,669.93 1" $19,174.83 1-1/2" $38,349.65 2" $61,359.44 3" $122,718.88 4 $191,748.25 6" $383,496.50 8" $613,594.40 10" $882,041.95 - TRIAD 3/4" $5,753.98 1" $14,384.95 1 -1/2" $28,769.90 2" $46,031.84 3" $92,063.68 4 $143,849.50 6" $287,699.00 8" $460,318.40 10" $661,707.70 28 28.01 B.2.New Water Supply Fee - All IDs including Triad 3/4" $832.57 1" $2,081.43 1-1/2" $4,162.85 2" $6,660.56 3" $13,321.12 4" $20,814.25 6" $41,628.50 8" $66,605.60 10" $95,745.55 28 28.02 Installation and Water Meter Charges Meter Size Meter Cost Installation Total Meter Box/Vault (if Needed) - Potable (Non-Irrigation)3/4" x 7.5"$236.54 $112.25 $348.79 $95.30 3/4" x 9"$251.85 $112.25 $364.10 $95.30 1"$305.24 $112.25 $417.49 $95.30 1.5"$496.13 $112.25 $608.38 $216.03 2"$710.90 $112.25 $823.15 $216.03 3"$2,215.45 $675.83 $2,891.28 $3,853.67 4"$3,847.89 $675.83 $4,523.72 $3,853.67 6"$6,646.35 $1,067.54 $7,713.89 $3,853.67 8"$8,304.12 $1,636.97 $9,941.09 $5,528.37 10"$11,942.87 $1,636.97 $13,579.84 $5,528.37 Section #Code #Fee Description Meter Size Charges 28 28.02 - Potable/Recycled Irrigation 3/4" x 7.5"$236.54 $112.25 $348.79 $242.86 3/4" x 9"$251.85 $112.25 $364.10 $242.86 1"$305.24 $112.25 $417.49 $242.86 1.5"$496.13 $112.25 $608.38 $242.86 2"$710.90 $112.25 $823.15 $242.86 3"$1,533.32 $675.83 $2,209.15 $3,853.67 4"$2,985.13 $675.83 $3,660.96 $3,853.67 6"$5,374.21 $1,067.54 $6,441.75 $3,853.67 8"$7,159.41 $1,636.97 $8,796.38 $5,528.37 10"$10,159.74 $1,636.97 $11,796.71 $5,528.37 - Combined Fire and Domestic 4"$9,154.47 $675.83 $9,830.30 $3,853.67 6"$12,183.80 $1,067.54 $13,251.34 $3,853.67 8"$17,714.36 $1,636.97 $19,351.33 $5,528.37 10"$24,174.24 $1,636.97 $25,811.21 $5,528.37 31 31.03 A.1. Requirement of Deposit for Temporary Meters 3/4"$156.85 1"$184.78 1-1/2"$379.62 2"$2,046.00 4"$1,986.00 6"$2,465.00 - Construction Trailer Temporary Meter 2"$2,046.00 - Tank Truck Temporary Meter (Ordinance No. 372)2"$850.00 31 31.03 A.4.Temporary Meter Install & Removal 3/4" - 4" (on hydrant)$150.00 4" - 6"$806.00 8" - 10"Actual Cost 31 31.03 A.5. Temporary Meter Move Fee (includes backflow certification)3/4" - 4"(on hydrant)$150.00 4" - 6" $806.00 8" - 10"Actual Cost 33 33.07 A. Customer Request for Meter Test (Deposit)5/8", 3/4" & 1"$60.00 1-1/2" & 2 "$120.00 3" & Larger $300.00 34 34.01 D.2. Returned Check Charges $25.00 Installation and Water Meter Charges (continued) Section #Code #Fee Description Meter Size Charges 34 34.02 C Meter Lock Charge $50.00 53 53.03 A.1.Sewer Capacity Fee within an ID $3,383.46 53 53.03 A.2.Sewer Capacity Fee per EDU outside an ID $5,788.90 53 53.03 B.1.Sewer Connection Fee - Russell Square $7,500.00 53 53.03 B.2.Monthly Sewer Service Charge - Russell Square $200.00 53 53.10 & 11 Set-up Fees for Accounts $15.00 53 53.10 Residential Sewer Rates (2) Rate multiplied by winter average units $2.93 53 53.10 Residential Monthly Fixed Sewer System Charges (2)5/8", 3/4" & larger $16.38 53 53.10 A.4. Residential Sewer Without Consumption History 5/8", 3/4" & larger $37.80 53 53.10 B.2.Multi-Residential Sewer Rates (2) Rate multiplied by winter average units $2.93 53 53.10 B.2. Multi-Residential Monthly Fixed Sewer System Charges (2).75"$16.38 1"$40.94 1.5"$81.88 2"$131.00 3"$245.64 4"$409.40 6"$818.79 8" $1,310.08 10"$1,883.23 (2) Sewer billed beginning January 1, 2020. Section #Code #Fee Description Meter Size Charges 53 53.10 B.3. Monthly Multi-Residential Sewer Rates without Consumption History (2) Per dwelling unit $19.20 53 53.11 Commercial and Industrial Sewer Rates Rate multiplied by Low Strength $2.93 annual avg.Medium Strength $3.64 units High Strength $5.01 53 53.11 Commercial and Industrial Monthly Fixed Sewer System Charges (2).75"$16.38 1"$40.94 1.5"$81.88 2"$131.00 3"$245.64 4"$409.40 6"$818.79 8" $1,310.08 10"$1,883.23 60 60.03 Issuance of Availability Letters for Water and/or Sewer Service $75.00 72 72.04 A.1. Locking or Removing Damaged or Tampered Meters - To Pull and Reset Meter 3/4" - 2"$200.00 - Broken Curbstop or Tabs 3/4" - 1"Actual Cost - If Customer uses Jumper 3/4" - 1"Actual Cost - Broken Lock/Locking Device 3/4" - 1"$68.00 - Broken Curbstop or Tabs 1.5" - 2"Actual Cost - To Pull and Reset Meter 3"Actual Cost - To Pull and Reset Meter 4"Actual Cost - To Pull and Reset Meter 6"Actual Cost - To Pull and Reset Meter 8"Actual Cost - To Pull and Reset Meter 10"Actual Cost 72 72.05 D. Type I Fine - First Violation $100.00 - Second Violations $200.00 - Third or each additional violation of that same ordinance or requirement within a twelve-month period $500.00 (2) Sewer billed beginning January 1, 2020. Section #Code #Fee Description Meter Size Charges 72 72.05 D. Type II Fine $5,000.00 Type III Fine $500.00 Type IV Fine $500.00 State Water Code #71630 & Annual Board Resolution #4142 Water Availability/Standby Annual Special Assessment Charge $10.00 $30.00 $3.00 $3.00 State Water Code #71630 & Annual Board Resolution #4142 Sewer Availability/Standby Annual Special Assessment Charge $10.00 $30.00 Annual Board Resolution General Obligation Bond Annual Tax Assessment $0.005 Policies 5B Copies of Identifiable Public Records $0.20/page 54 Late Payment Charge 5% of Delinquent Balance 54 Lien Processing Fee 50.00 The cost for all other copy sizes is the direct cost of duplication. Will not exceed per each day the violation is identified or continues. Fine up to amount specified per each day the violation is identified or continues. Fine up to amount specified per each day the violation is identified or continues. Less than one-acre all I.D.s & Outside an I.D. Per acre in I.D. 22 Per acre for outside I.D. & greater than one mile from District facilities. Less than one acre I.D. 18 Per acre I.D. 18 8 1/2" x 11" Per $1000 of assessed value for I.D. 27 Less than one-acre Outside I.D. and greater than one mile from District facilities. Section #Code #Fee Description Meter Size Charges 54 Delinquent Tax Roll Fee 40.00 54 Delinquency Tag $25.00 Section #Code #Fee Description Meter Size 9 9.04 A.1.District Annexation Processing Fee $857.00 9.04 B. Annexation Fees for Water Annexations into Otay Water District Boundaries Districtwide Annexation Fee 3/4"$2,106.75 1"$5,266.87 1-1/2"$10,533.75 2"$16,854.00 3"$33,708.00 4 $52,668.75 6"$105,337.50 8"$168,540.00 10"$242,276.25 9.04 C.4. Annexation Fees for Annexations to Sewer Improvement Districts per EDU $1,152.48 10 10.01 Waiver Request $50.00 23 23.04 Backflow Certification - Second Notification $10.00 - Third Notification $25.00 - Third Notification (hand delivered)$45.00 - Reconnection $50.00 - Reconnection (if test performed with technician present)$150.00 - Initial Filing Fee (New applicants for addition to the list of approved backflow prevention device testers)$25.00 - Renewal Filing Fee (to remain on list of approved backflow prevention device testers)Annually $10.00 25 25.03 A. Set-up Fees for Accounts $15.00 25 25.03 B. Monthly MWD & CWA Fixed System Charges (1)3/4"$16.36 1"$30.38 1-1/2"$68.67 2"$116.81 3"$248.44 Otay Water District Appendix A Charges (1)All Water used in December and billed in January 2021. Exhibit 4 Section #Code #Fee Description Meter Size Charges 25 25.03 B. Monthly MWD & CWA Fixed System Charges (1) (continued)4"$397.83 6"$814.38 8"$1,315.14 10"$1,892.97 25 25.03 C.1. Domestic Residential Monthly Fixed System Charges (1)3/4"$19.27 1"$27.24 1-1/2"$47.12 2"$70.98 25 25.03 C.2. Multi-Residential Monthly Fixed System Charges (1)3/4"$42.38 1"$59.84 1-1/2"$103.55 2"$155.94 3"$295.73 4"$453.03 6"$890.03 8"$1,414.36 10"$2,026.07 25 25.03 C.3. Business and Publicly-Owned Monthly Fixed System Charges (1)3/4"$39.92 1"$56.37 1-1/2"$97.54 2"$146.90 3"$278.57 4"$426.73 6"$838.39 8"$1,332.27 10"$1,908.45 25 25.03 C.4.3/4"$33.71 1"$47.61 1-1/2"$82.38 2"$124.04 3"$235.25 4"$360.40 6"$708.03 8"$1,125.15 10"$1,611.76(1)All Water used in December and billed in January 2021. Irrigation and Commercial Agricultural Monthly Fixed System Charges (1) Section #Code #Fee Description Meter Size Charges 25 25.03 C.5. - Irrigation 3/4"$35.07 1"$49.53 1-1/2"$85.71 2"$129.06 3"$244.76 4"$374.97 6"$747.91 8"$1,170.62 10"$1,676.89 25 25.03 C.6. - Commercial 3/4"$41.54 1"$58.65 1-1/2"$101.51 2"$152.88 3"$289.91 4"$444.11 6"$872.49 8"$1,386.49 10"$1,986.14 25 25.03 D.1.(b) Domestic Residential Water Rates (1)Unit Charge 1-10 $3.38 11-22 $6.04 23 or more $7.79 25 25.03 D.2.(b) Multi-Residential Water Rates - Per Dwelling Unit (1)0-4 $3.16 5-9 $5.73 10 or more $7.05 25 25.03 D.3.(b) Business and Publicly-Owned Water Rates (1)All Units $4.00 25 25.03 D.4.(c) Irrigation and Commercial Agricultural Using Potable Water Rates (1)All Units $5.84 25 25.03 D.5.(c)Recycled Irrigation Water Rates (1)All Units $4.80 25 25.03 D.6.(c)Recycled Commercial Water Rates (1)All Units $3.40 (1)All Water used in December and billed in January 2021. Recycled Monthly Fixed System Charges (1) Recycled Monthly Fixed System Charges (1) Section #Code #Fee Description Meter Size Charges 25 25.03 D.7.(b) Potable Temporary and Construction Water Service Rates (1)All Units $11.68 25 25.03 D.8.(b) Recycled Temporary and Construction Water Service Rates (1)All Units $9.60 25 25.03 D.10.(b) Tank Trucks Water Rates (1)All Units $11.68 25 25.03 D.11.(c) Application Fee for Water Service Outside District Boundaries $500.00 25 25.03 D.11.(d) Water Rate for Service Outside District Boundaries (1)All Units $11.68 25 25.03 D.12.(b) Application Fee for Water Service Outside an Improvement District $275.00 25 25.03 D.12.(c) Water Rate for Service Outside Improvement District (1)All Units $11.68 25 25.03 D.13.(c) Fire Service Monthly Charge 3" or less $23.03 more than 4"$31.03 25 25.03 D.14.(b)Government Per Unit $0.42 25 25.03 D.15.(b)Interim Service Water Rate(1)All Units $11.68 25 25.03 E.Energy Charges for Pumping Water (1) Per 100 ft of lift over 450 ft per unit $0.06 25 25.04 A.Deposits for Non-Property Owners 3/4"$100.00 1"$200.00 1-1/2"$250.00 2"$400.00 3"$1,000.00 4"$1,350.00 6"$3,300.00 8"$7,000.00 10"$10,000.00 (1)All Water used in December and billed in January 2021. Section #Code #Fee Description Meter Size Charges 28 28.01 B.1.Capacity Fees and Zone Charge Districtwide Capacity Fee - All IDs excluding Triad 3/4"$7,669.93 1"$19,174.83 1-1/2"$38,349.65 2"$61,359.44 3"$122,718.88 4 $191,748.25 6"$383,496.50 8"$613,594.40 10"$882,041.95 - TRIAD 3/4"$5,753.98 1"$14,384.95 1 -1/2"$28,769.90 2"$46,031.84 3"$92,063.68 4 $143,849.50 6"$287,699.00 8"$460,318.40 10"$661,707.70 28 28.01 B.2.New Water Supply Fee - All IDs including Triad 3/4"$832.57 1"$2,081.43 1-1/2"$4,162.85 2"$6,660.56 3"$13,321.12 4"$20,814.25 6"$41,628.50 8"$66,605.60 10"$95,745.55 28 28.02 Installation and Water Meter Charges Meter Size Meter Cost Installation Total Meter Box/Vault (if Needed) - Potable (Non-Irrigation)3/4" x 7.5"$236.54 $112.25 $348.79 $95.30 3/4" x 9"$251.85 $112.25 $364.10 $95.30 1"$305.24 $112.25 $417.49 $95.30 1.5"$496.13 $112.25 $608.38 $216.03 2"$710.90 $112.25 $823.15 $216.03 3"$2,215.45 $675.83 $2,891.28 $3,853.67 4"$3,847.89 $675.83 $4,523.72 $3,853.67 6"$6,646.35 $1,067.54 $7,713.89 $3,853.67 8"$8,304.12 $1,636.97 $9,941.09 $5,528.37 10"$11,942.87 $1,636.97 $13,579.84 $5,528.37 Section #Code #Fee Description Meter Size Charges 28 28.02 - Potable/Recycled Irrigation 3/4" x 7.5"$236.54 $112.25 $348.79 $242.86 3/4" x 9"$251.85 $112.25 $364.10 $242.86 1"$305.24 $112.25 $417.49 $242.86 1.5"$496.13 $112.25 $608.38 $242.86 2"$710.90 $112.25 $823.15 $242.86 3"$1,533.32 $675.83 $2,209.15 $3,853.67 4"$2,985.13 $675.83 $3,660.96 $3,853.67 6"$5,374.21 $1,067.54 $6,441.75 $3,853.67 8"$7,159.41 $1,636.97 $8,796.38 $5,528.37 10"$10,159.74 $1,636.97 $11,796.71 $5,528.37 - Combined Fire and Domestic 4"$9,154.47 $675.83 $9,830.30 $3,853.67 6"$12,183.80 $1,067.54 $13,251.34 $3,853.67 8"$17,714.36 $1,636.97 $19,351.33 $5,528.37 10"$24,174.24 $1,636.97 $25,811.21 $5,528.37 31 31.03 A.1. Requirement of Deposit for Temporary Meters 3/4"$156.85 1"$184.78 1-1/2"$379.62 2"$2,046.00 4"$1,986.00 6"$2,465.00 - Construction Trailer Temporary Meter 2"$2,046.00 - Tank Truck Temporary Meter (Ordinance No. 372)2"$850.00 31 31.03 A.4.Temporary Meter Install & Removal 3/4" - 4" (on hydrant)$150.00 4" - 6"$806.00 8" - 10"Actual Cost 31 31.03 A.5. Temporary Meter Move Fee (includes backflow certification)3/4" - 4"(on hydrant)$150.00 4" - 6" $806.00 8" - 10"Actual Cost 33 33.07 A. Customer Request for Meter Test (Deposit)5/8", 3/4" & 1"$60.00 1-1/2" & 2 "$120.00 3" & Larger $300.00 34 34.01 D.2. Returned Check Charges $25.00 Installation and Water Meter Charges (continued) Section #Code #Fee Description Meter Size Charges 34 34.02 C Meter Lock Charge $50.00 53 53.03 A.1.Sewer Capacity Fee within an ID $3,383.46 53 53.03 A.2.Sewer Capacity Fee per EDU outside an ID $5,788.90 53 53.03 B.1.Sewer Connection Fee - Russell Square $7,500.00 53 53.03 B.2.Monthly Sewer Service Charge - Russell Square $200.00 53 53.10 & 11 Set-up Fees for Accounts $15.00 53 53.10 Residential Sewer Rates (2) Rate multiplied by 3- year winter average units $2.96 53 53.10 Residential Monthly Fixed Sewer System Charges (2)5/8", 3/4" & larger $16.55 53 53.10 A.4. Residential Sewer Without Consumption History 5/8", 3/4" & larger $42.46 53 53.10 B.2.Multi-Residential Sewer Rates (2) Rate multiplied by 3-year winter average units $2.96 53 53.10 B.2. Multi-Residential Monthly Fixed Sewer System Charges (2).75"$16.55 1"$41.36 1.5"$82.71 2"$132.33 3"$248.13 4"$413.55 6"$827.09 8"$1,323.36 10"$1,902.34 (2)Sewer billed beginning January 1, 2021. Section #Code #Fee Description Meter Size Charges 53 53.10 B.3. Monthly Multi-Residential Sewer Rates without Consumption History (2) Per dwelling unit $20.24 53 53.11 Commercial and Industrial Sewer Rates Rate multiplied by Low Strength $2.96 annual avg.Medium Strength $3.37 units High Strength $4.75 53 53.11 Commercial and Industrial Monthly Fixed Sewer System Charges (2).75"$16.55 1"$41.36 1.5"$82.71 2"$132.33 3"$248.13 4"$413.55 6"$827.09 8" $1,323.36 10"$1,902.34 60 60.03 Issuance of Availability Letters for Water and/or Sewer Service $75.00 72 72.04 A.1. Locking or Removing Damaged or Tampered Meters - To Pull and Reset Meter 3/4" - 2"$200.00 - Broken Curbstop or Tabs 3/4" - 1"Actual Cost - If Customer uses Jumper 3/4" - 1"Actual Cost - Broken Lock/Locking Device 3/4" - 1"$68.00 - Broken Curbstop or Tabs 1.5" - 2"Actual Cost - To Pull and Reset Meter 3"Actual Cost - To Pull and Reset Meter 4"Actual Cost - To Pull and Reset Meter 6"Actual Cost - To Pull and Reset Meter 8"Actual Cost - To Pull and Reset Meter 10"Actual Cost 72 72.05 D. Type I Fine - First Violation $100.00 - Second Violations $200.00 - Third or each additional violation of that same ordinance or requirement within a twelve-month period $500.00 (2) Sewer billed beginning January 1, 2021. Section #Code #Fee Description Meter Size Charges 72 72.05 D. Type II Fine $5,000.00 Type III Fine $500.00 Type IV Fine $500.00 State Water Code #71630 & Annual Board Resolution #4142 Water Availability/Standby Annual Special Assessment Charge $10.00 $30.00 $3.00 $3.00 State Water Code #71630 & Annual Board Resolution #4142 Sewer Availability/Standby Annual Special Assessment Charge $10.00 $30.00 Annual Board Resolution General Obligation Bond Annual Tax Assessment $0.005 Policies 5B Copies of Identifiable Public Records $0.20/page 54 Late Payment Charge 5% of Delinquent Balance 54 Lien Processing Fee 50.00 Per acre for outside I.D. & greater than one mile from District facilities. Less than one acre I.D. 18 Per acre I.D. 18 8 1/2" x 11" Per $1000 of assessed value for I.D. 27 Less than one-acre Outside I.D. and greater than one mile from District facilities. Fine up to amount specified per each day the violation is identified or continues. Fine up to amount specified per each day the violation is identified or continues. Less than one-acre all I.D.s & Outside an I.D. Per acre in I.D. 22 The cost for all other copy sizes is the direct cost of duplication. Will not exceed per each day the violation is identified or continues. Section #Code #Fee Description Meter Size Charges 54 Delinquent Tax Roll Fee 40.00 54 Delinquency Tag $25.00 Otay Water District Proposition 218 Hearing on Sewer Rates Attachment B October 7, 2020 Today’s Agenda Review changes in the sewer rates Hear public comments After close of public hearing: •Approve Ordinance No. 578 to adopt rate, fee, and charge changes to sewer billed beginning January 1, 2021. •Authorize for a period of 5 years, all future pass‐through increases or decreases to cover changes to sewer rates, fees or charges from the District’s sewer providers. •Authorize for a period of 5 years, overall average sewer rate increases in addition to the pass-through increases, not to exceed 10% per year of all costs other than pass‐through costs. 2 Proposition 218 and Rate Setting Proposition 218 is a constitutional amendment designed to protect taxpayers by limiting the methods by which local governments can create or increase taxes, fees, and charges without taxpayer consent. Proposition 218 is not prescriptive in defining a “cost-based” rate. In part, Proposition 218 requires that: Fees shall not exceed the reasonable cost of providing the service. Fees shall not exceed the proportional cost of providing the service. 3 Timeline 5/6/2020 -Staff presented the Sewer Cost of Service Study results to the Board. 6/3/2020 -FY 2020-2021 Budget approved using the rates recommended in the cost of service study and directed the mailing of 218 notices. 10/7/2020 -Proposition 218 hearing. 1/1/2021 -Rate changes effective for sewer billed beginning January 1, 2021. 4 Residential rate structure changing from a 1-year winter average to a 3-year winter average. Overall proposed rate increase on January 1, 2021 of 2.8%. Average residential customer winter average increased from 8.6 units to 10.3 units. 5 Sewer Rate and Structure Highlights 6 Sewer Rates –Usage Rates Current Proposed Residential 2.93$ 2.96$ Multi-Residential 2.93 2.96 Commercial Low Strength 2.93 2.96 Medium Strength 3.64 3.37 High Strength 5.01 4.75 Schools 2.93 2.96 Churches 2.93 2.96 Usage Rate 7 Sewer System Charges Current Proposed Meter Size Charges Charges Residential 16.38 16.55$ Multi-Residential/Commercial 0.75 16.38 16.55 1.00 40.94 41.36 1.50 81.88 82.71 2.00 131.00 132.33 3.00 245.64 248.13 4.00 409.40 413.55 6.00 818.79 827.09 8.00 1,310.08 1,323.36 10.00 1,883.23 1,902.34 Sewer Rate Implementation 8 Winter Average Range (HCF)# of Customers 2019 Winter Average (HCF) 2020 Winter Average (HCF) % Winter Average Inc/(Dec) 2019 Monthly Charge 2020 Monthly Charge $ Inc/( Dec) % Inc/(Dec) 0 - 10 2,638 5.5 6.3 13.9%$30.04 $32.28 $2.23 7.4% 11 - 20 1,602 11.0 13.6 23.2%$43.80 $50.68 $6.88 15.7% 21 and up 349 21.3 25.4 18.9%$68.64 $80.06 $11.42 16.6% Total/Average 4,589 8.6 10.3 19.0%$37.80 $42.46 $4.66 12.3% 9 Survey of Member Agency Sewer Rates Recommendations Approve Ordinance No. 578 to adopt the rate, fee, and charge changes to sewer billed beginning January 1, 2021. Authorize for a period of 5 years, all future pass‐through increases or decreases to cover changes to sewer rates, fees or charges from the District’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 all costs other than pass‐through costs. 10 BNy NOTICE IS HEREBY GIVEN that the Otay Water District (the “District”) will hold a Public Hearing on October 7, 2020, at 3:30 p.m. in the Board of Directors Meeting Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, to consider: (1) the adoption of rate, fee, and charge changes that apply to sewer service billed beginning January 1, 2021; (2) the authorization for a period of five years of all future pass-through costs and cost increases or decreases to cover changes to rates, fees, or charges from the District’s power and sewer service providers; and (3) the authorization for a period of five years of overall average rate increases, in addition to the pass- through increases, not to exceed 10.0 percent per year for all costs other than pass-through costs. These rates, fees, and charges apply to property for which you are shown as the record owner or customer of record. The purpose of the hearing is to consider all protests against the proposed rates, fees, and charges that, if approved, will be imposed on properties served by the District. The amount of the proposed rate, fee, and charge increases and the basis upon which they were determined is described in more detail as follows. PROPOSED RATE CHANGE AND ACTIONS An overall average sewer rate increase of 2.8 percent will be considered by the Board of Directors at the public hearing noticed above. The rate increase is proposed to take effect with sewer service billed on or after January 1, 2021 and may apply to sewer service used as early as the beginning of December 2020. In May 2020, the District performed a Sewer Cost of Service Study, which reviewed sewer rates, fees, charges, costs, and the sewer usage structure, and determined that changes in rates, fees, and charges are necessary to recover revenues based on the cost of servicing each class of customer. In addition, the District is proposing changes to the sewer rate structure based on the comprehensive cost of service study. These changes were considered by the District’s Board of Directors as part of the annual budget review process. The District will also consider authorizing, for a period of five years, passing through to customers the costs and increases or decreases in costs imposed by the District’s power and sewer service providers. If adopted, customers’ sewer rates, fees, and charges will be adjusted annually for costs and charges from the District’s power and sewer service providers. The pass-through costs include rates, fees, and charges for power and from the District’s treatment and disposal providers. The providers include but are not limited to San Diego Gas and Electric, the County of San Diego, and the City of San Diego. In addition to the pass-through costs, the District will consider authorizing, for a period of five years, overall average rate increases not to exceed 10.0 percent per year for all costs related to labor, benefits, materials, maintenance, administrative expenses, and other operational costs of providing sewer service, including amounts required to meet bond covenants and to maintain adequate reserves and rate stability. Any changes to rates, fees, and charges subsequently imposed by the District will be subject to a 30-day prior written notice but will not be subject to additional hearings or protests. These proposed actions, if adopted, would implement the Sewer Cost of Service Study’s recommended findings for a period of five years, pass-through to customers increased or decreased costs from power and sewer service providers, and allow the District to recover the full cost of delivering sewer service. The proposed rates, fees, and charges will provide revenue that recovers all costs reasonably borne in providing sewer service; are equitable to all customer classes; and are proportionate to the cost of providing the service to each customer class. HOW IS MY SEWER BILL CALCULATED? To estimate sewer use, the District averages metered water use for the winter months of January through April of the previous three years. The “three-year winter average” is the basis of the sewer charges for the entire year. The winter months are used to measure average water use because less water is typically used outdoors during this time and therefore this average water use will more accurately measure the typical water that flows into the sewer system. The District gives customers a 15.0 percent usage discount to acknowledge that not all water purchased goes to the sewer system. The maximum consumption charge is based on a winter average of 35 units. The following is the sewer bill formula for residential and multi-residential customers: (3-Year Winter Average x 85% x Sewer Rate) + System Charges = Total Monthly Bill The usage charge for new customers with less than one year of winter average history will be based on the overall residential District three-year winter average. Effective January 1, 2021, the usage charge for these customers will be based on a three-year winter average of 10.3 HCF. The usage charge for customers with usage history equal to or greater than one year, but less than three years, will be based on actual winter average usage history for the number of years they have been customers of record. NOTICE OF PUBLIC HEARING In Connection with Proposed INCREASES TO RATES, FEES, AND CHARGES FOR RESIDENTIAL AND MULTI-RESIDENTIAL SEWER SERVICE Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. WHY ARE YOU RECEIVING THIS NOTICE? This notice is being provided to you by the District pursuant to the California Constitution Article XIIID (collectively known as “Proposition 218”). Under terms of Proposition 218, the District is required to notify the record owner or customer of record of proposed changes to property-related fees such as sewer service. This letter serves as notice that the District will hold a Public Hearing on October 7, 2020, at 3:30 p.m. in the Board of Directors Meeting Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978 to consider changes to its current sewer service rates, fees, and charges. However, if due to COVID-19 the State or County Shelter in Place Orders have not been lifted by October 7, 2020 the Public Hearing will be live streamed (audio and video) via Zoom live streaming on October 7, 2020, at 3:30 p.m. and conference call-in information will be posted on the District’s website. PROTEST PROCEDURE As the owner of record or customer of record of a property identified to be subject to the imposition of proposed rate, fee, and charge changes, you may submit a written protest against the proposed actions. Please note that if the identified property has more than one record owner or customer of record, only one written protest will be counted for the property. By law, each protest must be in writing; state the specific rate change for which the protest is being submitted in opposition; provide the location of the identified property (by assessor’s parcel number or street address); and include the original signature of the owner of record or customer of record submitting the protest. Protests submitted by e-mail, facsimile, or other electronic means will not be accepted. Written protests may be submitted by mail or in person to the Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978. Written protests may also be delivered in person at the public hearing, as long as they are received prior to the conclusion of the public hearing. Please note that if, due to COVID-19, the State or County Shelter in Place Orders have not been lifted by October 7, 2020, the Public Hearing will be live streamed via Zoom and, if the District’s Lobby is closed, then written protests will be accepted if they are submitted by mail to the Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, or delivered to the District’s Drop Box located at the entrance of the previously listed address. Please identify on the front of the envelope for any protest, whether mailed, submitted in person to the Board Secretary, or delivered to the District’s Drop Box, that the enclosed is a protest letter. At the conclusion of the public hearing, the Board of Directors will consider adopting the proposed actions as described above. By law, oral comments at the public hearing will not qualify as formal protests unless a written protest has been received by the District prior to the conclusion of the public hearing as instructed above. If, at the close of the public hearing, written protests against the proposed rate, fee, and charge changes are not presented by a majority of the record owners or customers of record of the identified properties upon which they are to be imposed, the Board of Directors will be authorized to adopt the proposed actions. If adopted, the rates, fees, and charges will apply to sewer service billed on or after January 1, 2021 and may apply to sewer service used as early as the beginning of December 2020. This letter serves as a 45-day notice of the hearing on the proposed rate changes, and as notice of the changes for sewer service billed on or after January 1, 2021, if adopted. WHY ARE SEWER RATE CHANGES NECESSARY? The District is a revenue-neutral public agency that provides sewer service to your community. “Revenue-neutral” means that sewer bills reflect only those rates, fees, and charges sufficient to support sewer service. To continue to provide reliable service, the District must implement and pass through to its customers the full and actual cost of providing sewer service, including higher costs imposed by service providers. The actions proposed will help protect the public’s investment in the public sewer system, reduce the possibility of pipeline breaks, blockages or spills, and keep rates affordable. As a nonprofit public agency, the District does not make a profit from providing sewer service, and it cannot operate at a loss. Over the next five-year period, the pass-through costs from the County of San Diego and City of San Diego are anticipated to increase the District’s sewer costs. The increase is primarily due to the following: 1) Anticipated capital improvement program cost increases related to the City’s Pure Water (recycled water) program, 2) Increasing costs of sewage treatment and transportation from the City of San Diego, and 3) Ongoing shared operation, maintenance, and capital improvement cost increases by the County of San Diego and the City of San Diego. WHAT DO SEWER RATES FUND? Each end user pays his or her fair share of the cost of sewage treatment and disposal; energy or pumping costs; labor and benefits; materials; chemicals used in sewage treatment; administrative expenses; and operations, construction, and maintenance of the public sewer system and facilities. This also includes amounts required to meet bond covenants and to maintain adequate reserves and rate stability. The District always works to keep its expenses to a minimum and, as a result, has rates for sewer service that are among the lowest in San Diego County. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. WHAT CAN I DO TO SAVE MONEY ON MY SEWER BILL? Customers interested in reducing their sewer bills should minimize their winter average water consumption by conserving water during the winter months (January through April). For information and conservation tips, visit the District’s conservation page at otaywater.gov. Additionally, the Water Conservation Garden located on the campus of Cuyamaca Community College in Rancho San Diego is open to the public and offers various conservation exhibits, programs and classes in person and online. For more about the Water Conservation Garden, visit thegarden.org. For information about the Otay Water District, visit otaywater.gov or email the District at info@otaywater.gov. PROJECTED AVERAGE SEWER BILLS (BASED ON 10.3 UNITS OF WATER) BY AGENCY EFFECTIVE FY 2021 Otay’s estimated average bill * At the time of the survey, the agency’s FY 2021 rate was not available, and an assumption was made that no rate increase will be implemented in FY 2021. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. The following is the sewer bill formula for residential and multi-residential customers: (Sewer Rate x 3-Year Winter Average2,3 x 85%1) + System Charges = Total Monthly Bill On average, a single-family residential sewer customer’s1 monthly bill will increase by $4.66 per month due to an increase in usage and rates. The sewer rate and system charges for single-family residential customers is increasing based on the findings of the Cost of Service Study, which was completed in May 2020. The tables below show the itemized charges, referenced in the table above, that are used to determine a monthly sewer bill. The following tables show the proposed rate changes in the sewer rate and system charges for residential and multi-residential sewer customers billed beginning January 1, 2021. These tables also show the projected 2022 through 2025 rate increases based on the proposed 6.4 percent inflator. Projections are for informational purposes only. Actual sewer rate and system charges in each of the projected years may differ. 1. A typical single-family residential sewer customer’s bill is based on 8.8 HCF of water (10.3 HCF x 85%), where one HCF equals 748 gallons or one unit of water. The 15.0 percent discount is an acknowledgement that not all water purchased goes to the sewer system. 2. The maximum bill for a single-family residential sewer customer is based on 30 HCF (35 HCF x 85%). 3. The 3-Year Winter Average is defined as the sum of prior three years annual winter average divided by three. The annual winter average is defined as the units of water billed from January through April divided by four. 4. Projections are for informational purposes only. Sewer rate and fixed charges increases are based on the proposed 6.4 percent inflator. Actual sewer rate and fixed sewer system charges in each of the projected years may differ. Sewer Rates Average Bill using 10.3HCF (or Units)1 of Water per Month Footnotes This information reflects only rates, fees, and charges that are proposed to change. For a comprehensive listing of rates, fees, and charges see the Otay Water District’s Code of Ordinances at otaywater.gov. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. Meter Current Proposed Projected Projected Projected Projected Size 2020 2021 2022 2023 2024 2025 0.75"$16.38 $16.55 $17.61 $18.74 $19.94 $21.22 1"$40.94 $41.36 $44.01 $46.83 $49.83 $53.02 1 1/2 "$81.88 $82.71 $88.00 $93.63 $99.62 $106.00 2 "$131.00 $132.33 $140.80 $149.81 $159.40 $169.60 3 "$245.64 $248.13 $264.01 $280.91 $298.89 $318.02 4 "$409.40 $413.55 $440.02 $468.18 $498.14 $530.02 6 "$818.79 $827.09 $880.02 $936.34 $996.27 $1,060.03 8 "$1,310.08 $1,323.36 $1,408.06 $1,498.18 $1,594.06 $1,696.08 10 "$1,883.23 $1,902.34 $2,024.09 $2,153.63 $2,291.46 $2,438.11 Multi-Residential Monthly Fixed Sewer System Charges by Meter Size- 2021 Proposed and 2022 - 2025 Projected4 Current Proposed Projected Projected Projected Projected 2020 2021 2022 2023 2024 2025 $2.93 $2.96 $3.15 $3.35 $3.56 $3.79 Residential and Multi-Residential Sewer Rate - 2021 Proposed and 2022 - 2025 Projected4 Fixed Sewer System Charges 3-Year Winter Average2,3 Sewer Rate System Charges Total Current 8.6 $2.93 $16.38 $37.80 Proposed 10.3 $2.96 $16.55 $42.46 Increase/(Decrease)$4.66 Current Proposed Projected Projected Projected Projected 2020 2021 2022 2023 2024 2025 $16.38 $16.55 $17.61 $18.74 $19.94 $21.22 Residential Monthly Fixed Sewer System Charges - 2021 Proposed and 2022 - 2025 Projected4 NOTICE IS HEREBY GIVEN that the Otay Water District (the “District”) will hold a Public Hearing on October 7, 2020, at 3:30 p.m. in the Board of Directors Meeting Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, to consider: (1) the adoption of rate, fee, and charge changes that apply to sewer service billed beginning January 1, 2021; (2) the authorization for a period of five years of all future pass-through costs and cost increases or decreases to cover changes to rates, fees, and charges from the District’s power and sewer service providers; and, (3) the authorization for a period of five years of overall average rate increases, in addition to the pass-through increases, not to exceed 10.0 percent per year for all costs other than pass-through costs. These rates, fees, and charges apply to property for which you are shown as the record owner or customer of record. The purpose of the hearing is to consider all protests against the proposed rates, fees, and charges that, if approved, will be imposed on properties served by the District. The amount of the proposed rate, fee, and charge increases and the basis upon which they were determined is described in more detail as follows. PROPOSED RATE CHANGE AND ACTIONS An overall average sewer rate increase of 2.8 percent will be considered by the Board of Directors at the public hearing noticed above. The rate increase is proposed to take effect with sewer service billed on or after January 1, 2021 and may apply to sewer service used as early as the beginning of December 2020. In May 2020, the District performed a Sewer Cost of Service Study, which reviewed sewer rates, fees, charges, costs, and the sewer usage structure and determined that changes in rates, fees, and charges are necessary in order to recover revenues based on the cost of servicing each class of customer. These changes were considered by the District’s Board of Directors as part of the annual budget review process. The District will also consider authorizing, for a period of five years, passing through to customers the costs and increases or decreases in costs imposed by the District’s power and sewer service providers. If adopted, the customers’ sewer rates, fees, and charges will be adjusted annually for costs and charges from the District’s power and sewer service providers. The pass- through costs include rates, fees, and charges for power and from the District’s treatment and disposal providers. The providers include, but are not limited to, San Diego Gas and Electric, the County of San Diego, and the City of San Diego. In addition to the pass-through costs, the District will consider authorizing, for a period of five years, overall average rate increases not to exceed 10.0 percent per year for all costs related to labor, benefits, materials, maintenance, administrative expenses, as well as other operational costs of providing sewer service, including amounts required to meet bond covenants and to maintain adequate reserves and rate stability. Any changes to rates, fees, and charges subsequently imposed by the District will be subject to a 30-day prior written notice but will not be subject to additional hearings or protests. These proposed actions, if adopted, would implement the Sewer Cost of Service Study’s recommended findings for a period of five years, pass-through to customers increased or decreased costs from power and sewer service providers, and allow the District to recover the full cost of delivering sewer service. The proposed rates, fees, and charges will provide revenue that recovers all costs reasonably borne in providing sewer service; are equitable to all customer classes; and are proportionate to the cost of providing the service to each customer class. HOW IS MY SEWER BILL CALCULATED? To estimate sewer use, the District averages metered water use. The “average annual consumption” is the basis of the sewer charges for the entire year. The average annual consumption is defined as the units of water billed from January through December of the previous year. The District gives customers a 15.0 percent usage discount to acknowledge that not all water purchased goes to the sewer system. The District calculates the monthly bill based on the customer’s water use, sewer strength and the size of the customer’s water meter which is more equitable among customer classes. The following is the sewer bill formula for commercial and industrial customers: (Average Annual Consumption x 85% x Sewer Rate) + System Charges = Total Monthly Bill WHY ARE YOU RECEIVING THIS NOTICE? This notice is being provided to you by the District pursuant to the California Constitution Article XIIID (collectively known as “Proposition 218”). Under terms of Proposition 218, the District is required to notify the record owner or customer of record of proposed changes to property-related fees such as sewer service. This letter serves as notice that the District will hold a Public Hearing on October 7, 2020, at 3:30 p.m. in the Board of Directors Meeting Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978 to consider changes to its current sewer service rates, fees, and charges. However, if due to COVID-19 the State or County Shelter in Place Orders have not been lifted by October 7, 2020 the Public Hearing will be live streamed (audio and video) via Zoom live streaming on October 7, 2020, at 3:30 p.m. and conference call-in information will be posted on the District’s website. PROTEST PROCEDURE As the owner of record or customer of record of a property identified to be subject to the imposition of proposed rate, fee, and charge changes, you may submit a written protest against the proposed actions. Please note that if the identified property has more than one record owner or customer of record, only one written protest will be counted for the property. By law, each protest must be NOTICE OF PUBLIC HEARING In Connection with Proposed INCREASES TO RATES, FEES, AND CHARGES FOR COMMERCIAL SEWER SERVICE Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. in writing; state the specific rate change for which the protest is being submitted in opposition; provide the location of the identified property (by assessor’s parcel number or street address); and include the original signature of the owner of record or customer of record submitting the protest. Protests submitted by e-mail, facsimile, or other electronic means will not be accepted. Written protests may be submitted by mail or in person to the Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978. Written protests may also be delivered in person at the public hearing, as long as they are received prior to the conclusion of the public hearing. Please note that if, due to COVID-19, the State or County Shelter in Place Orders have not been lifted by October 7, 2020, the Public Hearing will be live streamed via Zoom and, if the District’s Lobby is closed, then written protests will be accepted if they are submitted by mail to the Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, or delivered to the District’s Drop Box located at the entrance of the previously listed address. Please identify on the front of the envelope for any protest, whether mailed, submitted in person to the Board Secretary, or delivered to the District’s Drop Box, that the enclosed letter is a protest letter. At the conclusion of the public hearing, the Board of Directors will consider adopting the proposed actions as described above. By law, oral comments at the public hearing will not qualify as formal protests unless a written protest has been received by the District prior to the conclusion of the public hearing as instructed above. If, at the close of the public hearing, written protests against the proposed rate, fee, and charge changes are not presented by a majority of the record owners or customers of record of the identified properties upon which they are to be imposed, the Board of Directors will be authorized to adopt the proposed actions. If adopted, the rates, fees, and charges will apply to sewer service billed on or after January 1, 2021 and may apply to sewer service used as early as the beginning of December 2020. This letter serves as a 45-day notice of the hearing on the proposed rate changes, and as notice of the changes for sewer service billed on or after January 1, 2021, if adopted. WHY ARE SEWER RATE CHANGES NECESSARY? The District is a revenue-neutral public agency that provides sewer service to your community. “Revenue-neutral” means that sewer bills reflect only those rates, fees, and charges sufficient to support sewer service. To continue to provide reliable service, the District must implement and pass through to its customers the full and actual cost of providing sewer service, including higher costs imposed by service providers. The actions proposed will help protect the public’s investment in the public sewer system, reduce the possibility of pipeline breaks, blockages or spills, and keep rates affordable. As a non-profit public agency, the District does not make a profit from providing sewer service, and it cannot operate at a loss. Over the next five-year period, the pass-through costs from the County of San Diego and City of San Diego are anticipated to increase the District’s sewer costs. The increase is primarily due to the following: 1) Anticipated capital improvement program cost increases related to the City’s Pure Water (recycled water) program, 2) Increasing costs of sewage treatment and transportation from the City of San Diego, and 3) Ongoing shared operation, maintenance and capital improvement cost increases by the County of San Diego and the City of San Diego. WHAT DO SEWER RATES FUND? Each end user pays his or her fair share of the cost of sewage treatment and disposal; energy or pumping costs; labor and benefits; materials; chemicals used in sewage treatment; administrative expenses; and operations, construction, and maintenance of the public sewer system and facilities. This also includes amounts required to meet bond covenants and to maintain adequate reserves and rate stability. The District always works to keep its expenses to a minimum and, as a result, has rates for sewer service that are among the lowest in San Diego County. WHAT CAN I DO TO SAVE MONEY ON MY SEWER BILL? Customers interested in reducing their sewer bills should minimize their annual average water consumption by conserving water. For information and conservation tips, please visit the District’s Conservation page at otaywater.gov. Additionally, the Water Conservation Garden located on the campus of Cuyamaca Community College in Rancho San Diego is open to the public and offers various conservation exhibits, programs, and classes. For more about the Water Conservation Garden, visit thegarden.org. For information about the Otay Water District, please visit otaywater.gov or email the District at info@otaywater.gov. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. The following is the sewer bill formula for commercial and industrial customers: (Average Annual Consumption1 x 85%2 x Sewer Rate3) + System Charges = Total Monthly Bill The following tables show the proposed rate changes in the sewer rate and system charges for commercial and industrial sewer customers billed beginning January 1, 2021. Tables also show the projected 2022 through 2025 rate increases based on the proposed 6.4 percent inflator. Projections are for informational purposes only. Actual sewer rate and fixed charges in each of the projected years may differ. The District is required to determine sewer rates in accordance with the State’s Revenue Program Guidelines. The State Water Resources Control Board (SWRCB) has grouped commercial and industrial customers into various categories and has identified Strength Factors for each of these business categories. 1. The Average Annual Consumption is defined as the units of water billed from January through December of the previous year. 2. The District gives customers a 15.0 percent usage discount to acknowledge that not all water purchased goes to the sewer system. 3. The sewer rate is based on the customer’s assigned strength factor. 4. Projections are for informational purposes only. Sewer rate and fixed charges increases are based on the proposed 6.4 percent inflator. Actual sewer rate and fixed sewer system charges in each of the projected years may differ. Sewer Rates Footnotes This information reflects only rates, fees, and charges that are proposed to change. For a comprehensive listing of rates, fees, and charges, see the Otay Water District’s Code of Ordinances at otaywater.gov. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. Meter Current Proposed Projected Projected Projected Projected Size 2020 2021 2022 2023 2024 2025 3/4 "$16.38 $16.55 $17.61 $18.74 $19.94 $21.22 1"$40.94 $41.36 $44.01 $46.83 $49.83 $53.02 1 1/2"$81.88 $82.71 $88.00 $93.63 $99.62 $106.00 2 "$131.00 $132.33 $140.80 $149.81 $159.40 $169.60 3 "$245.64 $248.13 $264.01 $280.91 $298.89 $318.02 4"$409.40 $413.55 $440.02 $468.18 $498.14 $530.02 6"$818.79 $827.09 $880.02 $936.34 $996.27 $1,060.03 8"$1,310.08 $1,323.36 $1,408.06 $1,498.18 $1,594.06 $1,696.08 10"$1,883.23 $1,902.34 $2,024.09 $2,153.63 $2,291.46 $2,438.11 Commercial and Industrial Monthly Fixed Sewer System Charges by Meter Size 2021 Proposed and 2022-2025 Projected4 Strength Current Proposed Projected Projected Projected Projected Factor 2020 2021 2022 2023 2024 2025 Low-Strength $2.93 $2.96 $3.15 $3.35 $3.56 $3.79 Medium Strength $3.64 $3.37 $3.59 $3.82 $4.06 $4.32 High-Strength $5.01 $4.75 $5.05 $5.37 $5.71 $6.08 Schools $2.93 $2.96 $3.15 $3.35 $3.56 $3.79 Churches $2.93 $2.96 $3.15 $3.35 $3.56 $3.79 Commercial and Industrial Sewer Rates3 - 2021 Proposed and 2022-2025 Projected4 Fixed Sewer System Charges NOTICE IS HEREBY GIVEN that the Otay Water District (the “District”) will hold a Public Hearing on October 7, 2020, at 3:30 p.m. in the Board of Directors Meeting Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, to consider: (1) the adoption of rate, fee, and charge changes that apply to sewer service billed beginning January 1, 2021; (2) the authorization for a period of five years of all future pass-through costs and cost increases or decreases to cover changes to rates, fees, and charges from the District’s power and sewer service providers; and, (3) the authorization for a period of five years of overall average rate increases, in addition to the pass-through increases, not to exceed 10.0 percent per year for all costs other than pass-through costs. These rates, fees, and charges apply to property for which you are shown as the record owner or customer of record. The purpose of the hearing is to consider all protests against the proposed rates, fees, and charges that, if approved, will be imposed on properties served by the District. The amount of the proposed rate, fee, and charge increases and the basis upon which they were determined is described in more detail as follows. PROPOSED RATE CHANGES AND ACTIONS An overall average sewer rate increase of 2.8 percent will be considered by the Board of Directors at the public hearing noticed above. The rate increase is proposed to take effect with sewer service billed on or after January 1, 2021 and may apply to sewer service used as early as the beginning of December 2020. In May 2020, the District performed a Sewer Cost of Service Study, which reviewed sewer rates, fees, charges, costs, and the sewer usage structure and determined that changes in rates, fees, and charges are necessary in order to recover revenues based on the cost of servicing each class of customer. In addition, the District is proposing changes to the sewer rate structure based on the comprehensive cost of service study. The sewer customer rate changes were considered by the District’s Board of Directors as part of the annual budget review process. The District will also consider authorizing, for a period of five years, passing through to customers the costs and increases or decreases in costs imposed by the District’s power and sewer service providers. If adopted, the customers’ sewer rates, fees, and charges will be adjusted annually for costs and charges from the District’s power and sewer service providers. The pass-through costs include rates, fees, and charges for power and from the District’s treatment and disposal providers. The providers include, but are not limited to, San Diego Gas and Electric, the County of San Diego, and the City of San Diego. In addition to the pass-through costs, the District will consider authorizing, for a period of five years, overall average rate increases not to exceed 10.0 percent per year for all costs related to labor, benefits, materials, maintenance, administrative expenses, as well as other operational costs of providing sewer service, including amounts required to meet bond covenants and to maintain adequate reserves and rate stability. Any changes to rates, fees, and charges subsequently imposed by the District will be subject to a 30-day prior written notice but will not be subject to additional hearings or protests. These proposed actions, if adopted, would implement the Cost of Service Study’s recommended findings for a period of five years, pass-through to customers increased or decreased costs from power and sewer service providers, and allow the District to recover the full cost of delivering sewer service. The proposed rates, fees, and charges will provide revenue that recovers all costs reasonably borne in providing sewer service; are equitable to all customer classes; and are proportionate to the cost of providing the service to each customer class. WHY ARE YOU RECEIVING THIS NOTICE? This notice is being provided to you by the District pursuant to the California Constitution Article XIIID (collectively known as “Proposition 218”). Under terms of Proposition 218, the District is required to notify the record owner or customer of record of proposed changes to property-related fees such as sewer service. This letter serves as notice that the District will hold a Public Hearing on October 7, 2020, at 3:30 p.m. in the Board of Directors Meeting Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978 to consider changes to its current sewer service rates, fees, and charges. However, if due to COVID-19 the State or County Shelter in Place Orders have not been lifted by October 7, 2020 the Public Hearing will be live streamed (audio and video) via Zoom live streaming on October 7, 2020, at 3:30 p.m. and conference call-in information will be posted on the District’s website. PROTEST PROCEDURE As the owner of record or customer of record of a property identified to be subject to the imposition of proposed rate, fee, and charge changes, you may submit a written protest against the proposed actions. Please note that if the identified property has more than one record owner or customer of record, only one written protest will be counted for the property. By law, each protest must be in writing; state the specific rate change for which the protest is being submitted in opposition; provide the location of the identified property (by assessor’s parcel number or street address); and include the original signature of the owner of record or customer of record submitting the protest. Protests submitted by e-mail, facsimile, or other electronic means will not be accepted. Written protests may be submitted by mail or in person to the Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978. Written protests may also be delivered in person at the public hearing, as long as they are received prior to the conclusion of the public hearing. Please note that if, due to COVID-19, the State or County Shelter in Place Orders have not been lifted by October 7, 2020, the Public Hearing will be live streamed via Zoom and, if the District’s Lobby is closed, then written protests will be accepted if they are submitted by mail to the Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley, NOTICE OF PUBLIC HEARING In Connection with Proposed INCREASES TO RATES, FEES, AND CHARGES FOR SEWER SERVICE Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. CA 91978, or delivered to the District’s Drop Box located at the entrance of the previously listed address. Please identify on the front of the envelope for any protest, whether mailed, submitted in person to the Board Secretary, or delivered to the District’s Drop Box, that the enclosed is a protest letter. At the conclusion of the public hearing, the Board of Directors will consider adopting the proposed actions as described above. By law, oral comments at the public hearing will not qualify as formal protests unless a written protest has been received by the District prior to the conclusion of the public hearing as instructed above. If, at the close of the public hearing, written protests against the proposed rate, fee, and charge changes are not presented by a majority of the record owners or customers of record of the identified properties upon which they are to be imposed, the Board of Directors will be authorized to adopt the proposed actions. If adopted, the rates, fees, and charges will apply to sewer service billed on or after January 1, 2021 and may apply to sewer service used as early as the beginning of December 2020. This letter serves as a 45-day notice of the hearing on the proposed rate changes, and as notice of the changes for sewer service billed on or after January 1, 2021, if adopted. WHY ARE SEWER RATE CHANGES NECESSARY? The District is a revenue-neutral public agency that provides sewer service to your community. “Revenue-neutral” means that sewer bills reflect only those rates, fees, and charges sufficient to support sewer service. To continue to provide reliable service, the District must implement and pass-through to its customers the full and actual cost of providing sewer service, including higher costs imposed by service providers. The actions proposed will help protect the public’s investment in the public sewer system, reduce the possibility of pipeline breaks, blockages or spills, and keep rates affordable. As a non-profit public agency, the District does not make a profit from providing sewer service, and it cannot operate at a loss. Over the next five-year period, the pass-through costs from the County of San Diego and City of San Diego are anticipated to increase the District’s sewer costs. The increase is primarily due to the following: 1) Anticipated capital improvement program cost increases related to the City’s Pure Water (recycled water) program. 2) Increasing costs of sewage treatment and transportation from the City of San Diego. 3) Ongoing shared operation, maintenance and capital improvement cost increases by the County of San Diego and the City of San Diego. WHAT DO SEWER RATES FUND? Each end user pays his or her fair share of the cost of sewage treatment and disposal; energy or pumping costs; labor and benefits; materials; chemicals used in sewage treatment; administrative expenses; and operations, construction, and maintenance of the public sewer system and facilities. This also includes amounts required to meet bond covenants and to maintain adequate reserves and rate stability. The District always works to keep its expenses to a minimum and, as a result, has rates for sewer service that are among the lowest in San Diego County. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. This information reflects only rates, fees, and charges that are proposed to change. For a comprehensive listing of rates, fees, and charges, see the Otay Water District’s Code of Ordinances at otaywater.gov. Otay Water District Sewer Cost of Service Study April 2020 Draft Final Report April 2, 2020 Mr. Kevin Koeppen Assistant Chief of Finance Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, California 91978-2004 Subject: 2020 Sewer Cost of Service Study Dear Mr. Koeppen: HDR Engineering, Inc. (HDR) is pleased to present to the Otay Water District (District) the draft final report for the comprehensive sewer cost of service study. The District’s comprehensive study was developed to provide a financial plan and sewer rates that generate sufficient revenue to fund the operating and capital needs of the sewer utility. More specifically, the study was designed to develop cost-based and equitable sewer rates for the District’s customers. This report outlines the overall approach used to achieve these objectives, along with our findings, conclusions, and recommendations. The District owns and operates the sewer system and conveys and treats wastewater generated within the District’s service area. The costs associated with providing sewer service to the District’s customers has been developed based on the District’s sewer system costs, customer data, and system information and is discussed in more detail within this report. This study was developed utilizing generally accepted sewer industry rate setting principles and methodologies. This report provides the basis for developing and implementing sewer rates which are cost- based, equitable, and legally defensible to the District’s customers. We appreciate the assistance provided by the District’s project team in the development of this study. More importantly, HDR appreciates the opportunity to provide these technical and professional services to Otay Water District. Sincerely yours, HDR Engineering, Inc. Shawn Koorn Associate Vice President Table of Contents i Otay Water District – Sewer Cost of Service Study Table of Contents Executive Summary Introduction .................................................................................................................. 1 Overview of the Rate Study Process .............................................................................. 1 Summary of the Sewer Revenue Requirement Analysis ................................................. 2 Summary of the Sewer Cost of Service Analysis ............................................................. 6 Summary of the Sewer Rate Designs ............................................................................. 7 Summary of the Sewer Rate Study ................................................................................. 9 1 Introduction and Overview 1.1 Introduction ...................................................................................................... 11 1.2 Goals and Objectives ......................................................................................... 11 1.3 Overview of the Rate Study Process .................................................................. 12 1.4 Organization of the Study .................................................................................. 13 1.5 Summary ........................................................................................................... 13 2 Overview of the Rate Setting Principles 2.1 Introduction ...................................................................................................... 14 2.2 Generally Accepted Rate Setting Principles ........................................................ 14 2.3 Determining the Revenue Requirement ............................................................ 14 2.4 Analyzing Cost of Service ................................................................................... 15 2.5 Designing Utility Rates ....................................................................................... 16 2.6 Economic Theory and Rate Setting .................................................................... 16 2.7 Summary ........................................................................................................... 17 3 Development of the Revenue Requirement Analysis 3.1 Introduction ...................................................................................................... 18 3.2 Development of the Sewer Revenue Requirement Analysis ............................... 18 3.2.1 Establishing a Time Frame and Approach ................................................ 18 3.2.2 Projection of Rate and Other Miscellaneous Revenues ............................ 19 3.2.3 Projection of Operation and Maintenance Expenses ............................... 19 3.2.4 Projection of Taxes and Transfer Payments ............................................. 20 3.2.5 Projection of Capital Improvement Funding Needs.................................. 20 3.2.6 Projection of Debt Service ....................................................................... 23 3.2.7 Reserve Funding ...................................................................................... 23 3.2.8 Summary of the Sewer Revenue Requirement ........................................ 24 3.3 Consultant’s Revenue Requirement Conclusion and Recommendations ............ 25 3.4 Summary of the Sewer Revenue Requirement Analysis ..................................... 25 Table of Contents ii Otay Water District – Sewer Cost of Service Study 4 Development of the Cost of Service Analysis 4.1 Introduction ...................................................................................................... 26 4.2 Objectives of the Cost of Service ....................................................................... 26 4.3 Determining the Customer Classes of Service .................................................... 27 4.4 General Cost of Service Procedures ................................................................... 27 4.4.1 Functionalization of Costs ...................................................................... 27 4.4.2 Classification of Costs ............................................................................. 28 4.4.3 Development of the Allocation Factors .................................................. 29 4.5 Summary of the Sewer Cost of Service Analysis ................................................. 30 4.6 Summary of the Average Unit Costs .................................................................. 32 4.7 Consultant’s Cost of Service Conclusions and Recommendations ...................... 32 4.8 Summary ........................................................................................................... 32 5 Development of the Proposed Sewer Rate Designs 5.1 Introduction ..................................................................................................... 33 5.2 Rate Design Criteria and Considerations........................................................... 33 5.3 Development of Cost-Based Sewer Rates ......................................................... 33 5.4 Overview of the Present Sewer Rate Structure................................................. 34 5.5 Development of the Proposed Sewer Rates ..................................................... 35 5.6 Consultant’s Rate Design Conclusions and Recommendations ......................... 37 5.7 Summary.......................................................................................................... 37 Technical Appendix – Sewer Technical Analysis Executive Summary 1 Otay Water District –Sewer Cost of Service Study Executive Summary Introduction HDR was retained by Otay Water District (District) to conduct a comprehensive sewer rate study. The main objectives of the study were: x Review the District’s previously adopted sewer rates which were adopted through the Proposition 218 process. x Develop a financial plan for projecting operating and capital costs for the sewer utility for planning purposes. x Provide the framework and methodology, based on generally accepted industry best practices, for the development of cost-based sewer rates. The District owns and operates a sewer collection and treatment system. The District serves approximately 4,700 connections and the sewer service area differs from their water service area. More specifically, the sewer service area covers approximately 8,800 acres or the equivalent of about 11% of the District’s water service area. Most wastewater is treated for use in the District’s recycled water program but some of the wastewater collected is conveyed to the San Diego Metropolitan Wastewater Joint Powers Authority (Metro) for treatment. The costs associated with providing sewer services to the District’s sewer customers has been developed based on District provided information and it has been utilized in the development of the proposed sewer rates. Overview of the Rate Study Process A comprehensive rate study uses three interrelated analyses to address the adequacy and equity of the utility’s rates. These three analyses are a revenue requirement analysis, a cost of service analysis, and a rate design analysis. These three analyses are illustrated below in Figure ES - 1. “The District’s sewer service area differs from their water service area in that the sewer service area covers approximately 8,800 acres or the equivalent of about 11% of the District’s water service area.” Executive Summary 2 Otay Water District –Sewer Cost of Service Study Figure ES – 1 Overview of the Comprehensive Sewer Rate Analyses Shown above is the basic analytical framework that was utilized in the development of this study for reviewing and evaluating the District’s sewer rates. Summary of the Sewer Revenue Requirement Analysis A revenue requirement analysis is the first analytical step in the comprehensive sewer rate study process. This analysis determines the adequacy of the current sewer revenues (rates) to fund annual operating expenses, capital improvement needs, and meet any financial policies of the District. From this analysis, a determination can be made as to the overall level of sewer revenue adjustments – if necessary – to provide adequate and prudent funding for the District’s sewer system. As a practical matter, a multi-year time frame is recommended in an attempt to identify and plan for any major expenses that may be on the horizon. In this way, the District can anticipate future financial requirements and then begin to plan for these changes sooner, thereby, minimizing short-term sewer rate impacts while also stabilizing long-term sewer rates. For the revenue requirement analysis a “cash basis” approach was utilized. The “cash basis” approach is the most commonly used methodology by municipal and special district utilities to set their revenue requirement and is comprised of operation and maintenance (O&M) expenses, taxes/transfer payments, annual debt service payments, and rate funded capital projects. The primary inputs for the District’s revenue requirement analysis were obtained from the District’s budget documents, historical billed customer data, and the sewer capital improvement plan. Budgeted O&M expenses were projected using inflationary factors for the District’s various expenses to provide sewer collection and treatment services over the projected time period. Revenue Requirement Analysis Cost of Service Analysis Rate Design Analysis Compares the revenues to the expenses of the utility to determine the overall rate adjustment required Allocates the revenue requirement to the various customer classes of service in a “fair and equitable" manner Considers both the level and structure of the rate design to collect the target level of revenues Executive Summary 3 Otay Water District –Sewer Cost of Service Study The adequate funding of capital improvement projects is critical to maintain the existing sewer facilities, provide consistent levels of service, and minimize rate impacts over time. A general financial guideline states that, at a minimum, a utility should fund an amount equal to or greater than annual depreciation expense through rates. Annual depreciation expense reflects the current investment in plant being depreciated or “losing” its useful life. Therefore, this portion of plant investment needs to be replaced or repaired to maintain the existing level of infrastructure (and levels of service). However, it must be kept in mind that, in theory, annual depreciation expense reflects an investment in infrastructure that was placed in service an average of 15 years ago, assuming a 30-year useful (i.e., depreciable life). It is important to note and understand that depreciation expense is not the same as replacement cost. Thus, funding an amount which exceeds the sewer utilities’ share of depreciation expense is reasonable and appropriate. In developing this financial plan, HDR and the District have attempted to minimize rate impacts while prudently funding the planned capital improvement projects. A capital funding plan was developed based on the District’s current capital improvement plan. The goal of the funding plan was to utilize a balance of rates, reserves, and long-term debt in a way that both funds the capital needs over the long-term and also minimizes rate impacts. Every agency must balance the use of the various sources of capital funding depending on a large number of variables. Each has a benefit and drawback and therefore, all the considerations must be evaluated. This type of analysis is appropriate and necessary when developing the funding for capital improvements and establishing cost-based rates. The District has assumed the issuance of approximately $6.5 million of long-term debt in order to pay for several substantial infrastructure projects during the projected six-year time period. These projects will not only benefit the current customers of the District but also future customers. Given this, the use of long-term debt is appropriate and is used as a tool to attempt to equitably associate the future benefit (to future customers) to the associated future costs (in the form of annual debt service payments). Shown below in Table ES – 1 is a summary of the capital improvement plan for the projected five- year review period. Executive Summary 4 Otay Water District –Sewer Cost of Service Study Table ES – 1 Summary of the Sewer Capital Improvement Plan ($000s) FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Capital Improvement Projects Total Expansion Projects $3 $21 $37 $126 $171 $3 Total Betterment Projects 1,120 158 157 471 491 525 Total Replacement Projects 1,066 298 523 422 610 865 Total Capital Projects $2,188 $477 $717 $1,020 $1,272 $1,392 Less: Other Funding Sources Sewer Operating Reserves $0 $0 $0 $0 $0 $0 Sewer Replacement Reserves 1,066 298 523 422 610 865 Sewer Betterment Reserves 1,120 158 157 471 491 525 Sewer Expansion Reserves 3 21 37 126 171 3 New Long Term Debt 0 0 0 0 0 0 Total Other Funding $2,188 $477 $717 $1,020 $1,272 $1,392 As shown in Table ES-1, the District’s expansion, betterment, and replacement projects are all funded through available reserve fund balances. A portion of these reserves are funded through annual rate revenues as well as a long-term borrowing during this time period. A more detailed discussion of the sewer capital improvement funding plan is provided in Section 3 of this study. Given a projection of O&M starting with the District’s budget and capital improvement funding plan, the sewer revenue requirement analysis was developed. Table ES - 2 provides a summary of the revenue requirement for the District’s sewer utility. Executive Summary 5 Otay Water District –Sewer Cost of Service Study Table ES – 2 Summary of the Sewer Revenue Requirement Analysis ($000) FY 2020[1] FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Revenues Rate Revenues[1] $2,872 $2,743 $2,743 $2,743 $2,743 $2,743 Misc Revenues 108 174 255 357 529 116 Total Revenues $2,979 $2,916 $2,998 $3,100 $3,272 $2,859 Expenses Total O & M $2,795 $2,822 $2,916 $3,017 $3,123 $3,270 Taxes / Transfer 39 41 43 46 48 52 Debt Service 0 0 0 0 0 0 To / (From) Reserves 145 53 162 390 673 345 Total Expenses $2,979 $2,916 $3,122 $3,453 $3,845 $3,667 Bal. / (Def.) of Funds $0 $0 ($123) ($353) ($573) ($808) Bal. as a % of Rate Rev. 0.0% 0.0% 4.5% 12.9% 20.9% 29.5% Proposed Rate Adjustment [2] 0.0% 0.0% 9.0% 7.1% 7.1% 7.1% Add'l Revenue from Adj. $0 $0 $123 $353 $573 $808 Total Bal. /(Def.) of Funds $0 $0 $0 ($0) $0 $0 [1] – Includes adopted rate revenue adjustment for FY 2020 [2] – Rate adjustments are assumed to be implemented Jan. 1st each fiscal year and effective for 6 months As shown in Table ES – 2 above, the revenue requirement has summed the O&M, taxes / transfers, rate funded capital, net debt service, and reserve funding. The total revenue requirement is then compared to the total current revenues which include the sewer rate revenues - at present rate levels - and other miscellaneous sewer revenues. From this comparison a balance or deficiency of funds in each year can be determined. This balance or deficiency of funds is then compared to the annual rate revenues to determine the level of rate revenue adjustment needed to meet the overall revenue requirement. It should be noted that the rate adjustment percentage is impacted not only by increases in District operating and capital costs, but also from a changes in billable units for the volumetric component of rates for the residential customer class which is a majority of the District’s rate revenues. For example, in FY 2021 overall revenues are projected to decrease by approximately 4.5% due to the reduction in the recent winter water consumption for residential customers. Additionally, the total revenue requirement is projected to increase by approximately 4.0%. Taking the change of both revenues and expenditures into consideration, the overall percentage change to the District’s revenues can be developed. During this projected time period, the District’s rates appear to be deficient for FY 2021 through FY 2025. The total overall deficiency is approximately $808,000. To address that deficiency, annual sewer revenue adjustments are proposed for FY 2022 through FY 2025 as outlined in the Executive Summary 6 Otay Water District –Sewer Cost of Service Study table above. It is important to note that the District has historically implemented rate adjustments on January 1st of the fiscal year and the analysis assumes this strategy is maintained. Therefore, the proposed rate adjustments will only be effective for 6 months of each fiscal year and is reflected in the projected percentage change for each fiscal year. A more detailed discussion of the development of the revenue requirement analysis can be found in Section 3.2. Detailed technical exhibits of the sewer revenue requirement analysis have been included within the Technical Appendices. Summary of the Sewer Cost of Service Analysis A cost of service analysis determines the equitable allocation of the revenue requirement to the various customer classes of service (i.e., residential, multi-residential, commercial). The objective of the sewer cost of service analysis is different from determining the sewer revenue requirement analysis. A revenue requirement analysis determines the utility’s overall financial needs, whereas the cost of service analysis determines the fair and equitable (i.e., proportional) manner to collect the overall total revenue requirement. The District’s sewer cost of service analysis began by functionalizing the revenue requirement for the sewer system. Functionalizing the data sorts it into major functions (e.g., power, materials, treatment, administrative, etc.). Functionalization of the data was accomplished via the District’s system of accounting. The functionalized sewer revenue requirement was then allocated into their various cost components (volume, strength, customer-related). The individual allocation totals were then equitably distributed to the various customer classes of service based on the appropriate and proportional distribution factors. The distributed expenses for each customer class were then aggregated to determine each customer class’s overall revenue responsibility. These steps follow generally accepted industry methodologies and are outlined in the Water Environment Federation Manual of Practice No. 27, Financing and Charges for Wastewater System. Shown below in Table ES - 3 is a summary of the sewer cost of service analysis results by customer class of service. Table ES – 3 Summary of the Sewer Cost of Service Analysis ($000) Customer Class of Service Revenues at Present Rates Allocated Revenue Requirement Bal. / (Def.) of Funds Required % Change in Rates Low Strength [1] $2,658 $2,652 $6 -0.2% Medium Strength 31 33 (2) 5.4% High Strength 53 57 (4) 7.5% Total $2,743 $2,743 ($0) 0.0% [1] – Low Strength includes Residential, Multi-Residential, and Low Commercial The above results indicate that the customer classes of service are at or near their cost of service. This means that the District’s overall revenues collected from each customer class of service is as Executive Summary 7 Otay Water District –Sewer Cost of Service Study close to their “cost of service” as reasonably possible, based on the proportional allocation of costs and the customers utilization of the system. In making this statement, it is important to note that a cost of service study is an analysis of a point in time and the District’s costs, customer consumption patterns, and total usage change over time. With that in mind, a cost of service is a static analysis of a dynamic and ever-changing situation. While Table ES – 3 summarized the results of the sewer cost of service analysis by customer class of service, the cost of service analysis also contains sufficient detail to understand costs by fixed and variable charges. These unit costs, or cost-based rates, form the basis for the final proposed sewer rates by customer class of service. The Technical Appendices contains the various exhibits associated with the District’s cost of service analysis. Summary of the Sewer Rate Designs The final step of the comprehensive sewer rate study process is the design of the sewer rates to collect the appropriate levels of revenue for the system, and for each customer class of service. The appropriate levels of revenue have been determined based on the results of the revenue requirement and cost of service analysis. The revenue requirement analysis provided a set of recommendations related to annual rate adjustments, while the cost of service results indicated that minor interclass adjustments were needed at this time. The distributed costs in the cost of service analysis incorporate the proposed revenue adjustment from the revenue requirement analysis. Therefore, the proposed rates are designed to collect approximately the same amount of revenue as the costs that the revenue requirement identifies. However, the cost of service calculated unit costs have appropriately (equitably) realigned where the revenue is collected; for example, between customer classes as well as from either the fixed or variable charges. Provided below in Table ES – 4 are the present and proposed sewer rates for the District. This study has not recommended any changes to the rate structure only the calculation of the winter water average which is proposed to transition to a multi-year winter water average calculation (3-year average). However, the relationships between fixed and variable charges have been revised to be reflective of the District’s costs as determined within the cost of service analysis. Executive Summary 8 Otay Water District –Sewer Cost of Service Study Table ES – 4 Summary of the Present and Proposed Sewer Rates Present Rates FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Fixed Charge ($/Month) Residential Monthly System Fee $16.38 $16.13 $17.10 $18.22 $19.15 $20.60 Multi-Resident. / Comm. 3/4" $16.38 $16.13 $17.10 $18.22 $19.15 $20.60 1" 40.94 40.32 42.74 45.54 47.86 51.49 1-1/2" 81.88 80.63 85.48 91.08 95.73 102.97 2" 131.00 129.00 136.76 145.72 153.15 164.75 3" 245.64 241.89 256.44 273.23 287.18 308.92 4" 409.40 403.15 427.40 455.39 478.63 514.87 6" 818.79 806.29 854.78 910.77 957.25 1,029.74 8" 1,310.08 1,290.08 1,367.67 1,457.24 1,531.63 1,647.60 10" 1,883.23 1,854.49 1,966.01 2,094.78 2,201.70 2,368.41 Variable Charge ($/CCF) Residential Billed @ 85% of WW Avg $2.93 $2.89 $3.06 $3.26 $3.42 $3.59 Multi-Residential Billed @ 85% of WW Avg $2.93 $2.89 $3.06 $3.26 $3.42 $3.59 Commercial Low Strength $2.93 $2.89 $3.06 $3.26 $3.42 $3.59 Schools 2.93 2.89 3.06 3.26 3.42 3.59 Churches 2.93 2.89 3.06 3.26 3.42 3.59 Medium Strength 3.64 3.29 3.49 3.71 3.90 4.09 High Strength 5.01 4.63 4.91 5.23 5.48 5.76 As can be seen, the District has three separate rate schedules; residential, multi-residential, and commercial. The rate structure is composed of a fixed monthly charge and a consumption (volumetric) charge. The volumes of wastewater contributed by individual customer is not metered. Given that, winter water consumption is used as a surrogate for residential and multi- residential wastewater contributions. The District adjusts the winter water consumption for residential and multi-residential customers to 85% to determine the sewer billing units. This adjustment in consumption is used to be more reflective of wastewater contributions for these customers. For commercial customers, annual water use is adjusted to 85% to determine the sewer billing units. The customer bill impacts from these proposed rates will vary by customer class of service and by consumptive use. As an example, in FY 2021 and for a typical residential customer being billed Executive Summary 9 Otay Water District –Sewer Cost of Service Study 8 CCF/month, the change in their monthly bill will decrease by approximately $0.57/month, or a monthly sewer bill which goes from $39.82 to $39.25. As part of the rate study update, District staff and HDR looked at the viability of various other rate structures as alternatives to the District rates. One of the rate structures that was reviewed was a flat charge for residential and multi-residential customers. Although there are benefits in revenue stability and ease of administration there are also drawbacks to a flat rate structure. For example, conservation incentives by having a volumetric component may be diminished. Likewise, the equitability decreases as a customers’ bill does not specifically reflect their actual demands the customer places on the wastewater system. Finally, this approach would take the District in the opposite direction of the current industry trend of incorporating a volumetric component to the sewer rate structure. These are just a few examples of the reasons why the flat rate for residential and multi-residential customers is not recommended at this time. Another component of the District’s rates that was reviewed was the current maximum of 30 CCF maximum. After reviewing the most recent water consumption data it is the opinion of HDR that the current maximum of 30 CCF is appropriate, and water consumption above that level is generally not entering the sewer collection system. Section 4 of this study provides a more detailed discussion of the present and proposed sewer rates. Proposition 218 Notices and Public Hearing Given the requirements of what is commonly referred to as Proposition 218, a process must be utilized in order to adopt and implement a change in an agencies rates. The first requirement is that the rates must be cost-based or justified and that is the reason the District has developed the cost of service update. Once the cost basis for the proposed rates has been calculated, a public notice process must be undertaken in order to adopt the proposed rates. This begins with the presentation of the proposed rates to the District’s Board of Directors. If the proposed rates are acceptable and prudent, the Board will direct staff to prepare and mail the Proposition 218 notices to the District’s customers which outlines the changes in rates and the time, date, and location of the public hearing. The District Board will hold a public hearing at the specified time, date, and location to discuss the publicly noticed and proposed rates. Absent sufficient protest by customers, the Board may then move to adopt the proposed rates as outlined in the customer notification. Summary of the Sewer Rate Study This completes the overview of the development of the comprehensive sewer rate study for the District. The focus of this study has been the prudent and adequate funding of the District’s sewer utility, along with the development of equitable and cost-based sewer rates by customer class of service. A full and complete discussion of the development of the District’s comprehensive sewer rate study and the proposed sewer rates can be found in the following sections and exhibits of this report. Introduction and Overview 10 Otay Water District – Sewer Cost of Service Study 1 Introduction and Overview 1.1 Introduction HDR was retained by the Otay Water District (District) to conduct a comprehensive sewer cost of service study. The objective of the study was to review the District’s operating and capital costs in order to develop a financial plan and cost-based rates for the District’s sewer customers. This study determined the adequacy of the existing sewer rates and provides the framework and cost- basis for any needed future sewer revenue adjustments. The District owns and operates a sewer collection and treatment system. The District serves approximately 4,700 connections. The District’s sewer service area differs from their water service area in that the sewer service area covers approximately 8,800 acres or the equivalent of about 11% of the District’s water service area. Most wastewater is treated for use in the District’s recycled water program but some of the wastewater collected is conveyed to the San Diego Metropolitan Wastewater Joint Powers Authority (Metro) for treatment. The State of California has certain well established legal constraints regarding utility ratemaking, of which California Constitution article XIII D, section 6 (commonly referred to as “Proposition 218”)1 is at the forefront. At its very core, Proposition 218 requires a water (and sewer) utility to establish cost-based rates for the services provided. This study has been designed and intended to comply with the legal requirements of Proposition 218, as they are currently understood. This study has been developed using industry accepted sewer rate setting methodologies and best practices, along with District specific sewer system data and information. 1.2 Goals and Objectives The District had a number of key objectives in developing the sewer rate study. These key objectives provided a framework for policy decisions in the analysis that follows. These key objectives were as follows: x Develop the sewer study in a manner that is consistent with the principles and methodologies established by the Water Environment Federation (WEF), Manual of Practice No. 27, Financing and Charges for Sewer Systems. x In financial planning and establishing the District’s rates, review and utilize best industry practices, while recognizing and acknowledging the specific and unique characteristics of the District’s sewer system and facilities. x Review the District’s rates utilizing “generally accepted” rate making methodologies to determine adequacy and equity of the utility rates. 1 Proposition 218, enacted by California's voters in 1996, imposes certain procedures, requirements and voter approval mechanisms for local government assessments, fees and charges. Introduction and Overview 11 Otay Water District – Sewer Cost of Service Study x Meet the District’s financial planning criteria and goals, such as debt service coverage ratios, adequate funding of capital infrastructure, and maintenance of adequate and prudent reserve levels. x Develop a final proposed financial plan which adequately supports the sewer utility’s funding requirements, while attempting to minimize overall impacts to rates. x Provide rates designed to meet the legal requirements of Article XIII D and recent legal decisions related to Article XIII D. x Develop proposed rates that are cost-based and reflective of the District’s specific costs. 1.3 Overview of the Rate Study Process User rates must be set at a level where a utility’s operating and capital expenses are met with the revenues received from customers. This is an important point, as failure to achieve this objective may lead to insufficient funds to maintain system integrity. To evaluate the adequacy of the existing sewer rates, a comprehensive rate study is often performed. A comprehensive rate study consists of three interrelated analyses. Figure 1 - 1 provides an overview of these analyses. Figure 1 – 1 Overview of the Comprehensive Sewer Rate Analyses The study conducted by HDR included the three technical analyses discussed above. In establishing cost-based rates, the revenue requirement analysis determines the overall revenue needs of the utility. Next, the cost of service analysis provides an equitable allocation of the costs to the different types of customers served, while also providing per unit costs which become the cost-basis for the final rate designs. Finally, the rate design analysis utilizes the average unit costs from the cost of service analysis to establish the revised cost-based rates. Each of these elements of the technical analysis is discussed in more detail within this report. Revenue Requirement Analysis Cost of Service Analysis Rate Design Analysis Compares the revenues to the expenses of the utility to determine the overall rate adjustment required Allocates the revenue requirement to the various customer classes of service in a “fair and equitable" manner Considers both the level and structure of the rate design to collect the target level of revenues Introduction and Overview 12 Otay Water District – Sewer Cost of Service Study 1.4 Organization of the Study This report is organized in a sequential manner that first provides an overview of utility rate setting principles, followed by sections that detail the specific steps used to review the District’s sewer rates. The following sections comprise the District’s sewer cost of service study report: x Section 2 – Overview of Rate Setting Principles x Section 3 – Development of the Revenue Requirement Analysis x Section 4 – Development of the Cost of Service Analysis x Section 5 – Development of the Proposed Sewer Rate Designs Technical Appendices are attached at the end of this report which details the various technical analyses that were undertaken in the preparation of this study. 1.5 Summary This report will review the various technical analyses undertaken by HDR and the District to review their current sewer rates. The objective of this study is to develop cost-based sewer rates which are compliant with the legal requirements of Proposition 218, as it is currently understood. Overview of Rate Setting Principles 13 Otay Water District – Sewer Cost of Service Study 2 Overview of Rate Setting Principles 2.1 Introduction This section of the report provides background information about the sewer rate setting process, including descriptions of generally accepted principles, types of utilities, methods of determining a revenue requirement, the cost of service analysis, and rate design. This information is useful for gaining a better understanding of the details presented later in this report. 2.2 Generally Accepted Rate Setting Principles As a practical matter, all utilities should consider setting their rates around some generally accepted or global principles and guidelines. Utility rates should be: x Cost-based, equitable, and set at a level that meets the utility’s full revenue requirement x Easy to understand and administer x Designed to conform to “generally accepted” rate setting techniques x Stable in their ability to provide adequate revenues for meeting the utility’s financial, operating, and regulatory requirements x Established at a level that is stable from year-to-year from a customer’s perspective 2.3 Determining the Revenue Requirement Most public utilities use the “cash basis” approach for establishing their revenue requirement and setting rates. This approach conforms to most public utility budgetary requirements and the calculation is easy to understand. A public utility totals its cash expenditures for a period of time to determine required revenues. The revenue requirement for a public utility is usually comprised of the following costs or expenses: x Total Operating Expenses: This includes a utility’s operation and maintenance (O&M) expenses, plus any applicable taxes or transfer payments. Operation and maintenance expenses include the materials, electricity, labor, supplies, etc., needed to keep the utility functioning. x Total Capital Expenses: Capital expenses are calculated by adding debt service payments (principal and interest) to capital improvements financed with rate revenues. In lieu of including capital improvements financed with rate revenues, a utility sometimes includes depreciation expense to stabilize the annual revenue requirement. Under the “cash basis” approach, the sum of the total O&M expenses plus the total capital expenses equals the utility’s revenue requirement during any selected period of time (historical or projected). Note that the two portions of the capital expense component (debt service and rate funded capital) are necessary under the cash basis approach because utilities generally cannot finance all their capital facilities with long-term debt. At the same time, it is often difficult to pay for capital expenditures on a “pay-as-you-go” basis given that some major capital projects may have Overview of Rate Setting Principles 14 Otay Water District – Sewer Cost of Service Study significant rate impacts upon a utility, even when financed with long-term debt. Many utilities have found that some combination of pay-as-you-go funding and long-term financing will often lead to minimization of rate increases over time. Additionally, the use of long-term debt for the funding of major capital improvements can have the added benefits of matching the service level benefit to customers with the cost as well as matching the expense to the useful life of the asset. For example, a significant capital asset will likely have an average lifespan exceeding 30 years, depending on the specific asset. In the same way, the benefits from the service of that asset are not all felt in the initial year only but rather over the lifetime of the asset. Therefore, it is a prudent approach to capital funding major infrastructure improvements with long-term debt as this matches the expense (through the debt service payments) to the benefit to customers and the assets useful life. Public utilities typically use the “cash basis”2 approach to establish their revenue requirements. An exception occurs if a public utility provides service to a wholesale or contract customer. In that situation, a public utility could use the “utility basis” approach (see Table 2 - 1) regarding earning a fair return on its investment. Table 2 – 1 Cash versus Utility Basis Comparison Cash Basis Utility Basis (Accrual) + O&M Expenses + O&M Expenses + Taxes/Transfer Payments + Taxes/Transfer Payments + Rate Funded Capital ;ш Depreciation Expense) + Depreciation Expense + Debt Service (Principal + Interest) + Return on Investment = Total Revenue Requirement = Total Revenue Requirement For purposes of this discussion, the District has utilized the cash basis methodology for the establishment of the revenue requirement analysis. Of these two generally accepted methodologies, the use of the cash basis methodology for the District is the most appropriate. 2.4 Analyzing Cost of Service After the total revenue requirement is determined, it is equitably allocated to the users of the service. The allocation, usually analyzed through a cost of service analysis, reflects the cost relationships for providing sewer services. A cost of service analysis requires three analytical steps: 2 “Cash basis” as used in the context of rate setting is not the same as the terminology used for accounting purposes and recognition of revenues and expenses. As used for rate setting, “cash basis” simply refers to the specific cost components to be included within the revenue requirement analysis. Overview of Rate Setting Principles 15 Otay Water District – Sewer Cost of Service Study 1. Costs are functionalized or grouped into the various cost categories related to providing service (collection, treatment, etc.). This step is largely accomplished by the utility’s accounting system. 2. The functionalized costs are then allocated to specific cost components. Allocation refers to the arrangement of the functionalized data into cost components. For example, a utility’s sewer costs are typically allocated as volume, strength, or customer-related. 3. Once the costs are allocated into components, they are proportionally distributed to the customer classes of service (e.g., residential, multi-residential, commercial). The distribution is based on each customer class’ proportional contribution to the cost component (i.e., benefits received from, and burdens placed on the system and its resources). For example, customer-related costs are distributed to each class of service based on the total number of customers in that class of service. Once costs are distributed, the revenues from each customer class of service required to achieve cost-based rates can be determined. At the conclusion of the cost of service analysis, two key pieces of information are provided. First, the cost of service provides an understanding of the total revenues to be collected from each class of service. The cost of service provides an equitable method to assign that total cost between the various sewer customer classes of service (e.g., residential, multi-residential, commercial). The other important piece of information provided by the cost of service analysis is the calculation of average unit costs. Average unit costs are the distributed costs divided by the appropriate billing units. This provides an understanding of the cost on a $/customer/month and $/hundred cubic feet (CCF)3 basis. These calculated average unit costs are essentially the cost- based sewer rates. 2.5 Designing Utility Rates Rates that meet the utility’s objectives are designed based on the findings and conclusions from both the revenue requirement and cost of service analysis. This approach results in rates that are strictly cost-based and does not consider other non-cost based goals and objectives (economic development, ability to pay, revenue stability, etc.). In designing rates, factors such as revenue stability, continuity of past rate philosophy, ease of administration, and customer understanding may typically be taken into consideration. However, in order to meet the legal requirements of Proposition 218, the rates must take into consideration each customer class’s proportional share of costs allocated through the cost of service analysis. Given this, the utility’s ability to take goals and objectives other than cost-based is limited. However, in the design of the rate structure, the utility’s goals and objectives can frame the approach for setting cost-based rates. 2.6 Economic Theory and Rate Setting One of the major justifications for a comprehensive cost of service study is founded in economic theory. Economic theory suggests that the price of a commodity must roughly equal its cost if equity among customers is to be maintained. This statement’s implications on utility rate designs are significant. For example, a sewer utility usually incurs strength-related costs to treat 3 A CCF = one-hundred cubic feet. One (1) CCF of water = 748 gallons of water Overview of Rate Setting Principles 16 Otay Water District – Sewer Cost of Service Study wastewater. It follows that the customers who have high strength wastewater and create the need for greater treatment to address the strength of the wastewater should proportionally pay a higher rate to address the strength of their wastewater. When costing and pricing techniques are refined, consumers have a more accurate understanding of what the commodity costs to produce and deliver. This price-equals-cost concept provides the basis for the subsequent analysis and comments. 2.7 Summary This section of the report has provided a brief introduction to the general principles, techniques, and economic theory used to set sewer rates. These principles and techniques will become the basis for the District’s comprehensive cost of service study. Development of the Revenue Requirement 17 Otay Water District – Sewer Cost of Service Study 3 Development of the Revenue Requirement 3.1 Introduction This section describes the development of the revenue requirement analysis for the District’s sewer system. The revenue requirement analysis is the first analytical step in the comprehensive rate study process. From this analysis a determination can be made as to the overall level of rate adjustments needed to provide adequate and prudent funding for both operating and capital needs of the sewer utility. The prior section of the report provided an overview of the general approach and methodology to be used within this portion of the analysis. 3.2 Development of the Sewer Revenue Requirement Analysis There are a number of steps associated with the development of the sewer revenue requirement analysis. In developing the District’s sewer revenue requirement, the utility must financially “stand on its own” and be properly funded. As a result, the revenue requirement analysis assumes the full and adequate funding needed to operate and maintain the District’s sewer system on a financially sound and prudent basis. No subsidies are assumed from the water operations of the District. Provided below is a more detailed discussion of the development of the sewer revenue requirement analysis for District. 3.2.1 Establishing a Time Frame and Approach The first step in calculating the revenue requirement for the District’s sewer system was to establish a time frame for the revenue requirement analysis. The review period of FY 2020 through FY 2025 was determined to be an appropriate time period for the analysis and financial plan. The financial plan was developed based on the District’s FY 2020 budget and capital plan. Reviewing a multi-year time period is recommended since it attempts to identify any major expenses that may be on the horizon. By anticipating future financial requirements, the District can then begin planning for these changes sooner, thereby minimizing short-term rate impacts and overall long-term rates. The second step in determining the revenue requirement was to decide on the basis of accumulating costs. In this particular case, for the revenue requirement analysis a “cash basis” approach was utilized. As noted in Section 2, the “cash basis” approach or methodology is the most commonly used methodology by municipal and special district utilities to set their revenue requirement. This is also the methodology that the District has historically used to establish their revenue requirement. Given a time period around which to develop the revenue requirement and a method to accumulate the costs; the focus shifts to the development and projection of the revenues and expenses of the District’s sewer system. The primary financial inputs in the development of the revenue requirement were the District’s current budget documents, customer billing data, and capital improvement plan. Presented Development of the Revenue Requirement 18 Otay Water District – Sewer Cost of Service Study below is a detailed discussion of the steps and key assumptions contained in the development of the projections of the District’s sewer revenue requirement analysis. 3.2.2 Projection of Rate and Other Miscellaneous Revenues The first step in developing the District’s sewer revenue requirement was to develop a projection of the sewer rate revenues, at present rate levels. In general, this process involved developing projected billing units for each customer group (rate schedule). The billing units (accounts and billed volumes) for each customer group were then multiplied by the corresponding sewer rates. This method of independently calculating revenues links the projected revenues used within the analysis to the projected billing units. Additionally, it aids in confirming that the billing units used within the study are reasonable for purposes of projecting future revenues, allocating costs, and ultimately establishing the proposed rates. For FY 2020, it is calculated that the District will receive approximately $2.9 million in rate revenues for the sewer utility, with the vast majority of those revenues being received from the residential customer class of service. Rate revenues, excluding projected rate increases, are projected to decrease slightly and then remain flat and by FY 2025 reach approximately $2.7 million. It should be noted that the District’s sewer system is relatively small and highly developed which means there is limited opportunities for customer growth. In addition to rate revenues, the District also receives non-operating (miscellaneous) revenues. These miscellaneous revenues are related to property tax proceeds, late fees, non-operating revenues, and others. In FY 2020, miscellaneous revenues are approximately $108,000. By FY 2025, it is projected that miscellaneous revenues will increase slightly to approximately $116,000. In total, including rate and miscellaneous revenue sources, the sewer utility is projected to collect approximately $3.0 million in total revenues in FY 2020. Excluding future rate increases, the total revenues are projected to remain relatively flat over time and be approximately $3.0 million by FY 2025. 3.2.3 Projection of Operation and Maintenance Expenses Operation and maintenance (O&M) expenses are incurred by the District to perform the daily operations and maintain the sewer collection and treatment systems. The District has wastewater treatment capacity for purposes of their recycled water program with the majority of the District’s wastewater being treated locally by the District. The remaining wastewater volumes are conveyed to the San Diego Metropolitan Wastewater Joint Powers Authority (Metro) for treatment. The starting point for the projection of the District’s sewer O&M expenses was the District’s FY 2020 budget. Budgeted O&M expenses were projected over the rate study time period based on Development of the Revenue Requirement 19 Otay Water District – Sewer Cost of Service Study both historical inflationary factors and known future inflationary factors. These factors took into consideration the District’s historical cost increases and projected increases. Depending upon the specific cost, the escalation factors for each year ranged from 2.0% to 6.0% for the various types of expenses (e.g., labor, benefits, materials, etc.). A major O&M expense for the District is wastewater treatment from Metro. For FY 2020, the Metro expense is projected to be approximately $601,000. This Metro expense estimate, and the expense estimates for Metro for all five years was provided by the District. Over time, the expense is expected to increase to approximately $803,000 by FY 2025. This District also contributes an average of approximately $258,000 per year towards Metro capital improvement projects over the six-year review period. In total, for FY 2020, the budgeted O&M expenses are $2.8 million and with the assumed escalation of costs over time, it is projected that the FY 2025 O&M expenses will be just under $3.3 million. 3.2.4 Projection of Taxes and Transfer Payments The District’s sewer utility does not pay any taxes or payment in lieu of taxes (PILOT) to any other governmental entity. There are, however, annual transfers to the OPEB fund which equals $39,400 in FY 2020. 3.2.5 Projection of Capital Improvement Funding A key component in the development of the sewer revenue requirement was properly and adequately funding capital improvement project needs (i.e., infrastructure). One of the major issues facing many utilities across the U.S. is the amount of deferred capital projects and the funding pressure from regulatory-related improvements. The proper and adequate funding of capital projects is an important issue for all sewer utilities and is not just a local issue or concern of the District. In general, there are three types of capital projects that the District may need to fund. These include the following types: x Renewal and replacement projects x Growth / capacity expansion projects x Regulatory-related projects A renewal and replacement project is essentially maintaining the existing system that is in place today. As the existing plant becomes worn out, obsolete, etc., the District should be making continuous investments to maintain the integrity of its sewer facilities. In contrast to this, the District may make capital investments to expand the capacity of facilities to accommodate future customers. Finally, certain projects may be a function of a regulatory requirement in which the Federal and / or State government mandates the need for an improvement to the system to meet a regulatory standard. Development of the Revenue Requirement 20 Otay Water District – Sewer Cost of Service Study Understanding these different types of capital projects is important because it may help to explain why costs are increasing and the cost drivers for any needed rate adjustment. In addition, and more importantly, the way in which projects are funded may vary by the type of capital project. For example, renewal and replacement projects may be paid for via rates and funded on a “pay-as-you-go basis”. In contrast to this, growth or capacity expansion projects may be funded through the collection of a capacity fee (i.e., growth-related charges) in which new development pays a proportional and equitable share of the cost of improvements required as a result of their connection (impact). Finally, regulatory projects may be funded by a variety of different means, which may include rates, long-term debt, grants, etc. While the above discussion appears to neatly divide capital projects into three clearly defined categories, the reality of working with specific capital projects may be more complex. For example, a pump may be replaced, but while being replaced, it is also up-sized to accommodate greater capacity. There are various projects that share these “joint” characteristics. At the same time, projects may not be “replacement” related, but rather “betterment/improvement” related. The District utilizes the terms “replacement”, “expansion”, and “betterment” to describe their capital projects. While the total amount of a project may vary from year to year, the sewer capital funding plan should be developed in an attempt to provide a consistent funding source for the utility. A desirable funding target for rate funded capital is an amount equal to or greater than annual depreciation expense. Depreciation expense reflects the amount of capital infrastructure that is becoming worn out or obsolete. While funding an amount equal to depreciation is considered an industry best practice, even with this level of funding, depending upon the timing of future replacement capital projects, additional funding from rates may be needed at some point in time to address the replacement or betterment of the District’s existing assets. It is important to note and understand that depreciation expense is not the same as replacement cost. Thus, funding an amount which exceeds depreciation expense is considered to be both prudent and appropriate. In developing this financial plan, HDR and the District have attempted to minimize rate impacts while funding the planned capital improvement projects of the District. The District has taken the direction of issuing long-term debt in order to pay for some of the substantial infrastructure projects planned over the time period. These projects will not only benefit the current customers of the District but also future customers. Given this, the use of long-term debt is appropriate and is used as a tool to attempt to equitably associate the future benefit (to future customers) to the associated future costs (in the form of annual debt service payments). The balancing of rate revenues, available reserves, and debt funding provides the District with a method to fund capital over the long-term and minimize rates to the greatest extent possible. Shown below in Table 3 – 1 is summary of the District’s capital improvement plan that was used in the development of the sewer revenue requirement. Development of the Revenue Requirement 21 Otay Water District – Sewer Cost of Service Study Table 3 – 1 Summary of the Sewer Capital Improvement Plan ($000s) FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Capital Improvement Projects Total Expansion Projects $3 $21 $37 $126 $171 $3 Total Betterment Projects 1,120 158 157 471 491 525 Total Replacement Projects 1,066 298 523 422 610 865 Total Capital Projects $2,188 $477 $717 $1,020 $1,272 $1,392 Less: Other Funding Sources Sewer Operating Reserves $0 $0 $0 $0 $0 $0 Sewer Replacement Reserves 1,066 298 523 422 610 865 Sewer Betterment Reserves 1,120 158 157 471 491 525 Sewer Expansion Reserves 3 21 37 126 171 3 New Long Term Debt 0 0 0 0 0 0 Total Other Funding $2,188 $477 $717 $1,020 $1,272 $1,392 As mentioned, the District is funding capital through a mix of rate revenues, available reserves, and long-term debt. Given this, it is important to understand the level of funding from each source. It is important to note that the District is projecting the need for long-term debt issuances in FY 2020 and FY 2022 and that the proceeds from these issuances have been deposited in the replacement fund reserves and are then utilized as a funding source for replacement capital improvement projects. Provided below In Table 3 – 2 is a more detailed summary of the funding plan for the review period of FY 2020 through FY 2025. Development of the Revenue Requirement 22 Otay Water District – Sewer Cost of Service Study Table 3 – 2 Summary of the Sewer Capital Improvement Plan ($000s) FY 2020 – FY 2025 Funding % of Total Notes Capital Improvement Projects Total Expansion Projects $360 5.1% Total Betterment Projects 2,921 41.3% Total Replacement Projects 3,785 53.6% Total Capital Projects $7,066 Capital Improvement Funding Replacement Reserves 3,785 53.6% Debt proceeds fund Replacement Reserve Betterment Reserves 2,921 41.3% Expansion Reserves 360 5.1% Rate Funded 0 0.0% Total CIP Funding $7,066 As can be seen above, the District is funding capital projects from a variety of different sources. It is important to note that the District is utilizing reserve funds, however, not to the extent above annual funding and existing balances so that reserve levels are reduced below target minimums. The District should continue to monitor reserve levels in order to maintain the target or minimum balances. 3.2.6 Projection of Debt Service The District recently issued long-term debt to fund capital improvements in FY 2020. Additionally, the District is planning to issue additional long-term debt in FY 2022. The District has assumed a total of $6.5 million - a $3 million issuance completed in FY 2020 and $3.5 million is planned for FY 2022 - in long-term debt to fund replacement capital projects. The annual debt service associated with this debt issuance in total is estimated at approximately $379,000/year. There are no additional long-term debt issuances assumed over the projected six-year review period. The District has made a concerted effort to strategically plan debt issuances and continues to also focus on cash (rate) financing capital improvement projects with the ultimate goal of keeping a steady projection of rates as well as keeping the overall rate level low. 3.2.7 Reserve Funding The final component of the revenue requirement analysis is the “To / (From) Reserves” line item or additional transfers to reserve funds to maintain targeted fund balances or for future funding of specific projects. The rate analysis assumes annual transfers both into and out of the operating, replacement, expansion, and betterment reserves. These transfers are used to fund capital improvements in future years. This provides funding for planned improvements in order to provide funding prior to the need for adjusting rates or long-term borrowing to fund improvements. The average transfer is approximately $678,000 per year over the review period. Development of the Revenue Requirement 23 Otay Water District – Sewer Cost of Service Study 3.2.8 Summary of the Sewer Revenue Requirement Given the above projections of revenues and expenses, a summary of the sewer revenue requirement analysis can be developed. In developing the revenue requirement analysis, consideration was given to the financial planning considerations of the District. In particular, emphasis was placed on attempting to minimize rates, yet still have adequate funds to support the operational activities and capital projects throughout the projected time period. The revenue requirement has summed the O&M, taxes and transfers, rate funded capital, net debt service and the reserve funding. The total revenue requirement is then compared to the total sources of funds which include the rate revenues, at present rate levels, and other miscellaneous revenue sources. From this comparison a balance or deficiency of funds in each year can be evaluated. This balance or deficiency of funds is then compared to the sewer rate revenues to determine the level of revenue adjustment - if needed - to meet the revenue requirement (i.e., support cost-based sewer rates). Table 3 – 3 provides a summary of the revenue requirement analysis for the District’s sewer utility. Table 3 – 3 Summary of the Sewer Revenue Requirement Analysis ($000) FY 2020[1] FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Revenues Rate Revenues[1] $2,872 $2,743 $2,743 $2,743 $2,743 $2,743 Misc Revenues 108 174 255 357 529 116 Total Revenues $2,979 $2,916 $2,998 $3,100 $3,272 $2,859 Expenses Total O & M $2,795 $2,822 $2,916 $3,017 $3,123 $3,270 Taxes / Transfer 39 41 43 46 48 52 Debt Service 0 0 0 0 0 0 To / (From) Reserves 145 53 162 390 673 345 Total Expenses $2,979 $2,916 $3,122 $3,453 $3,845 $3,667 Bal. / (Def.) of Funds $0 $0 ($123) ($353) ($573) ($808) Bal. as a % of Rate Rev. 0.0% 0.0% 4.5% 12.9% 20.9% 29.5% Proposed Rate Adjustment [2] 0.0% 0.0% 9.0% 7.1% 7.1% 7.1% Add'l Revenue from Adj. $0 $0 $123 $353 $573 $808 Total Bal. /(Def.) of Funds $0 $0 $0 ($0) $0 $0 [1] - Includes adopted rate revenue adjustment for FY 2020 [2] - Rate adjustments are assumed to be implemented Jan. 1st each fiscal year and effective for 6 months As can be seen in the above table, the revenue requirement analysis indicates that for FY 2020 the revenues balance to the projected expenses of the utility. However, over time, there are deficiencies within the revenue requirement analysis. Over the five-year projected period, and by FY 2025, the District’s sewer rates are projected to be deficient by approximately $808,000 or Development of the Revenue Requirement 24 Otay Water District – Sewer Cost of Service Study 29.5% of the present rates. This implies that over the five-year period rate revenues should be adjusted to meet this deficiency. 3.3 Consultant’s Conclusions and Recommendations The revenue requirement analysis results show that the District’s current sewer rates are not at a level to adequately fund the operating and capital needs over the review period. HDR concludes that the District’s sewer revenues should be adjusted to adequately meet the District’s revenue requirements. If the revenues are not adjusted, the sewer utility could be adversely effected by a number of issues such as reduced O&M, reduced service levels to customers, deferred capital maintenance, and declining reserves funds which may fall below desired minimum levels. To mitigate the funding deficiencies shown in Table 3 - 3, a rate transition plan was developed which proposes rate adjustments over the five year period. It is proposed that the District does not adjust revenue levels in FY 2021 (0.0%) then adjust revenues by 9.0% in FY 2022, and 7.1% from FY 2023 through FY 2025. The District has historically implemented the rate adjustments January 1st of each fiscal year meaning the impact is only effective for six months or half of the fiscal year. It is assumed that this strategy is maintained for the review period. As can be seen at the bottom of Table 3 - 3, with these proposed adjustments, the additional revenue generated by the adjustments balances to the deficiencies shown. In that way, the revenue adjustments for each year balance to the revenue requirements developed for each year. The revenue requirement analysis for the District was developed to meet the financial planning and policy objectives of the District. More specifically, the revenue requirements are designed to adequately and prudently fund the District’s sewer operating and capital needs. 3.4 Summary of the Sewer Revenue Requirement This section of the report has provided a discussion of the District’s sewer revenue requirement analysis. As a part of the revenue requirement analysis, a proposed rate transition plan was developed to support the District’s operating and capital needs. The proposed sewer revenue adjustments are designed to be cost-based and balance the total revenues to the total revenue requirement in each year. The next section of the report will discuss the development of the sewer cost of service analysis for District. Development of the Cost of Service 25 Otay Water District – Sewer Cost of Service Study 4 Development of the Cost of Service 4.1 Introduction In the previous section, the revenue requirement analysis focused on the total sources and application of funds required to adequately fund the District’s sewer system. This section of the report will provide an overview of the sewer cost of service analysis developed for the District. The sewer cost of service analysis is concerned with the equitable allocation of the total sewer revenue requirement between the various sewer customer classes of service (e.g., residential, multi-residential, commercial). The sewer revenue requirement developed in Section 3 was utilized in the development of the sewer cost of service analysis. 4.2 Objectives of a Cost of Service Analysis There are two primary objectives in conducting a sewer cost of service study: x Allocate the District’s revenue requirement among the customer classes of service x Derive average unit costs for subsequent rate designs The objectives of the cost of service analysis are different from determining the District’s revenue requirement. As noted in the previous section, a revenue requirement analysis determines the utility’s overall financial needs, while the cost of service analysis determines the fair and equitable manner to proportionately collect the revenue requirement from the District’s various customer classes of service. The second rationale for conducting a cost of service analysis is to ensure that proposed rates are designed such that it properly reflects the costs incurred by the District. For example, a sewer utility typically incurs costs related to flow (wastewater volumes), strength, and customer cost components. Each of these types of costs may be collected in a slightly different manner as to allow for the development of rates that collect costs in the same manner as they are incurred. Development of the Cost of Service 26 Otay Water District – Sewer Cost of Service Study 4.3 Determining the Customer Classes of Service The first step in a cost of service analysis is to determine the customer classes of service. Based on the District’s current rate schedules, the customer classes of service used within the District’s sewer cost of service analysis were as follows: x Residential x Multi-Residential x Commercial ¾ Low-Strength ¾ Medium Strength ¾ High Strength ¾ Schools ¾ Churches In determining customer classes of service for cost of service purposes, the objective is to group customers together into similar or homogeneous groups based upon facility requirements and/or flow characteristics. HDR reviewed the current customer classes of service used by the District and found them to be consistent with typical industry practices. As can be seen, the commercial class of service has been segregated between low-strength, medium strength and high-strength customers. This allows for the development of cost-based sewer rates for commercial customers reflective of their relative wastewater strength levels. 4.4 General Cost of Service Procedures In order to determine the cost to serve each customer class of service on the District’s sewer system, a cost of service analysis is conducted. A cost of service study utilizes a three-step approach to review costs. These steps take the form of functionalization, allocation and distribution. Provided below is a detailed discussion of the sewer cost of service study conducted for the District, and the specific steps taken within the analysis. 4.4.1 Functionalization of Costs The first analytical step in the cost of service process is called functionalization. Functionalization is the arrangement of expenses and asset (plant) data by major operating functions (e.g., collection, pumping). Within this Terminology of a Sewer Cost of Service Analysis Functionalization – The arrangement of the cost data by functional category (e.g. collection, pumping, treatment). Allocation – The assignment of functionalized costs to cost components (e.g. volume, strength, and customer related). Distribution – Distributing the allocated costs to each class of service based upon each class’s proportional contribution to that specific cost component. Volume-Related Costs – Costs that are classified as volume related vary with the total flow of wastewater (e.g., power for pumping). Strength-Related Costs – Costs classified as strength related refer to the wastewater treatment function. Typically, strength-related costs are further defined as biochemical oxygen demand (BOD) and suspended solids (SS). Different types of customers may have high wastewater strength characteristics and high strength wastewater costs more to treat. Treatment facilities are often designed and sized around meeting these costs. Customer-Related Costs – Costs classified as customer related vary with the number of customers on the system, e.g., billing costs. Direct Assignment – Costs that can be clearly identified as belonging to a specific customer group or group of customers. Development of the Cost of Service 27 Otay Water District – Sewer Cost of Service Study study, there was a limited amount of functionalization of the cost data, as the District’s records functionalized a majority of the costs. 4.4.2 Allocation of Costs The second analytical task performed in a sewer cost of service study is the allocation of the costs. Allocation determines why the expenses were incurred or what type of need is being met. The following cost allocators were used to develop the cost of service analysis: x Volume-Related Costs: Volume related costs are those costs which tend to vary with the total quantity of wastewater collected and treated. x Strength-Related Costs: Strength related costs are those costs associated with the additional handling and treatment of high “strength” wastewater. Strength of wastewater is typically measured in biochemical oxygen demand4 (BOD) and total suspended solids5 (SS). Increased levels of BOD or SS generally equate to increased treatment costs. x Customer-Related Costs: Customer-related costs vary with the addition or deletion of a customer or a cost which is a function of the number of customers served. Customer related costs typically include the costs of billing, collecting, and accounting. x Revenue-Related Costs: Some costs associated with the utility may vary with the amount of revenue received by the utility. An example of a revenue related cost would be a utility tax which is based on gross utility revenue. As a part of this study, the District’s plant in service (assets) were functionalized and allocated. Provided below in Table 4 – 1 is a summary of the functionalization and allocation of the plant in service. Table 4 - 1 Summary of the Functionalization and Allocation of the District’s Sewer Plant in Service Asset Category Volume Related BOD Related Sus. Solids Related Customer Related Revenue Related Collection 85.0% 0.0% 0.0% 15.0% 0.0% Treatment 40.0% 30.0% 30.0% 0.0% 0.0% Lift Stations 100.0% 0.0% 0.0% 0.0% 0.0% General Plant 83.8% 0.8% 0.8% 14.6% 0.0% Total Net Plant In Service 83.8% 0.8% 0.8% 14.6% 0.0% 4 BOD is the amount of dissolved oxygen that must be present in water in order for microorganisms to decompose the organic matter in the wastewater. 5 TSS is the entire amount of organic and inorganic particles dispersed in wastewater. Development of the Cost of Service 28 Otay Water District – Sewer Cost of Service Study The allocation of the plant in service was based upon generally accepted cost of service principles. The details of the functionalization and classification of plant in service can be found on Exhibit 10 of the Technical Appendix. The allocation of the revenue requirement followed a similar approach as the plant in service. As a general cost of service rule, the expense for a plant item should follow the corresponding allocation of the related plant item. For example, the operation and maintenance of collection lines should be allocated in the same manner as the corresponding plant in service (e.g., collection plant). This approach has been used within this cost of service analysis. Provided below in Table 4 - 2 is a summary of the allocation of the FY 2021 total revenue requirements. Table 4 – 2 Summary of the Allocation of the FY 2021 Revenue Requirement ($000’s) Total Volume (VOL) Biochemical Oxygen Demand (BOD) Suspended Solids (SS) Customer Related (AC + WCA) Revenue Related (RR) $2,743 $1,298 $159 $177 $1,108 $0 100.0% 47.3% 5.8% 6.5% 40.4% 0.0% The detailed exhibit of the functionalization and allocation of the District’s sewer revenue requirement can be found on Exhibit 11 of the Technical Appendix. 4.4.3 Development of the Distribution Factors Once the allocation process is complete, and the customer groups have been defined, the various allocated costs are then distributed to each customer class of service. The District’s costs were distributed to the customer classes of service using the following distribution factors. x Volume Distribution Factor: Volume-related costs are generally distributed on the basis of the estimated contribution to wastewater flows. Unlike water usage, wastewater is not metered and must be estimated. The basis for estimating wastewater contributions is a customer’s water consumption data. However, for residential and multi-residential, wastewater flows were calculated based on 85% of the average winter use (January through April of the previous year). The use of winter water use and the 85% adjustment factor is intended to eliminate outdoor water use from the sewer billing which clearly does not enter the collection system and return to the wastewater treatment plant. In contrast to residential and multi-residential, wastewater flow estimates for commercial customers is based upon 85% of their billed annual water usage. Additionally, most large commercial customers with significant landscaping have a separate irrigation meter. Given the estimated volumes of wastewater from each class of service, a proportional distribution factor was developed. The volume distribution factor developed as a part of this study can be found on Exhibit 6 within the Technical Appendix. Development of the Cost of Service 29 Otay Water District – Sewer Cost of Service Study x Strength Distribution Factor: Strength-related costs are distributed between BOD and SS. Both of these types of costs are distributed to each of the classes of service based upon the assumed domestic strength level of 220 mg/l for BOD and 240 mg/l for SS. For the medium strength customer class, 460 mg/l for BOD and SS was used. Lastly, for high strength customer class a BOD of 1,000 mg/l was used and 1,000 mg/l of SS. The strength levels were based on historical District information and industry data. The detailed strength distribution factor developed for this cost of service can be found on Exhibit 8 of the Technical Appendix. x Customer Distribution Factor: Customer costs within the cost of service analysis are distributed to the various customer classes of service based upon their respective customer counts. Two types of customer distribution factors were developed; actual and weighted. The actual customer distribution factor assumes that there is no disproportionate cost associated with serving a customer (e.g., postage for bills is the same regardless of the size or usage of the customer) and is based on the number of actual accounts. In contrast, a weighted customer distribution factor assumes that there is some disproportionality associated with serving different types of customers and attempts to estimate the level of difference in serving the customers. For the District’s study, the weighting factors were based on the safe operating capacity of a meter based on the AWWA standards. This distribution is done in order to reflect the capacity of a water meter and, therefore, show the potential impact to the sewer system based on water meter size. The development of the customer distribution factors can be found on Exhibit 7 of the Technical Appendix. x Revenue-Related Distribution Factor: The revenue-related distribution factor was developed from the projected rate revenues for FY 2021. The revenue-related allocation factor can be found on Exhibit 9 of the Technical Appendix. x Direct Assignment: Any costs that can be identified or shown to be directly related to a specific customer class are directly assigned within the cost of service study. In this particular study, there were no direct assignments. The development of distribution factors is based on generally accepted cost of service principles as discussed in the Water Environment Federation, Manual of Practice #27. 4.5 Summary of the Sewer Cost of Service Analysis In summary form, the cost of service analysis began by functionalizing the District’s plant asset records and O&M expenses. The functionalized plant and expense accounts were then allocated into their various cost components. Next, the individual allocation totals were then distributed to the various customer groups based on the appropriate distributed factors. For example, volume-related costs were distributed based on each customer class’ share of total wastewater contributions. The total costs classified to each cost component were distributed between the customer classes using the distribution factors. Table 4 – 3 provides a summary of distributed cost components to each customer class of service. Development of the Cost of Service 30 Otay Water District – Sewer Cost of Service Study Table 4 – 3 Summary of the Distributed FY 2021 Revenue Requirement ($000’s) Classified Costs Total Residential Multi- Residential Commercial Volume $1,298 $979 $152 $167 BOD 160 115 18 27 TSS 177 128 20 29 Customer 1,108 904 105 98 RR 0 0 0 0 DA 0 0 0 0 Total $2,743 $2,127 $295 $321 The distributed expenses for each customer group were then aggregated to determine each customer group’s overall revenue responsibility. Provided in Table 4 – 4 is a summary of the District’s sewer cost of service analysis. Table 4 – 4 Summary of the Sewer Cost of Service ($000) Customer Class of Service Revenues at Present Rates Allocated Revenue Requirement Bal. / (Def.) of Funds Required % Change in Rates Low Strength [1] $2,658 $2,652 $6 -0.2% Medium Strength 31 33 (2) 5.4% High Strength 53 57 (4) 7.5% Total $2,743 $2,743 ($0) 0.0% [1] – Low Strength includes Residential, Multi-Residential, and Low Commercial The above results indicate that the customer classes of service are at or near their cost of service. This means that the District’s overall sewer rate revenues collected from each customer class of service is reasonably close to their “cost of service” and reflect the proportional allocation of costs. In making this statement, it is important to note that a cost of service study is an analysis of a point in time and the District’s sewer costs, customer consumption patterns and total wastewater volumes will vary and change over time. Development of the Cost of Service 31 Otay Water District – Sewer Cost of Service Study 4.6 Summary of the Average Unit Costs As noted at the start of this section of the report, there are two key pieces of information which are derived from the cost of service analysis; the equitable distribution of the total revenue requirement (i.e., total costs) and the calculation of the average unit costs. Average unit costs are essentially cost-based rates in that they are derived from the allocated costs within the cost of service study. Each allocated cost is divided by the appropriate billing unit (e.g., number of accounts or wastewater volumes) and a per unit charge or cost is derived. Provided below in Table 4 – 5 is a summary of the average unit costs for the District’s sewer cost of service analysis. Table 4 – 5 Summary of the Sewer Cost of Service Unit Costs Total Residential Multi- Residential Commercial Variable Costs ($ / CCF) $2.86 $2.83 $3.34 $4.64 Customer Costs ($ / Cust / Mo) $16.36 The average unit costs shown in Table 4 – 5 will be used to develop the final proposed sewer rates. A more detailed discussion of the development of the proposed sewer rate designs can be found on in the next section of the report. 4.7 Consultant’s Cost of Service Conclusions and Recommendations The sewer cost of service analysis conducted for the District utilized generally accepted cost of service principles and methodologies. The results indicated some minor cost differences between the various customer classes of service, but no significant cost issues. It is recommended that the results of the cost of service be used in the development of the final proposed sewer rate designs. By using the results of the cost of service analysis the District’s rates will be cost-based and reflect the requirements of Proposition 218, as it is currently understood. 4.8 Summary This section of the report has discussed the sewer cost of service analysis developed for the District. This analysis reflects the specific and unique characteristics of the District’s sewer system and was developed using generally accepted cost of service techniques and principles. The next section of the report will review the present and proposed sewer rates for the District. Development of the Sewer Rate Design 32 Otay Water District – Comprehensive Sewer Rate Study 5 Development of the Sewer Rate Design 5.1 Introduction The final step of the District’s comprehensive sewer rate study is the design of proposed sewer rates to collect the target levels of revenues, based upon the results of the revenue requirement and cost of service analyses. In reviewing District’s rates, consideration is given to both the level of the rates and the structure of the rates. Level refers to the amount of revenue to be collected from the rate design and structure refers to the way in which it is collected (e.g., fixed charges, volumetric charges). 5.2 Rate Design Criteria and Considerations Prudent rate administration dictates that several criteria must be considered when setting utility rates. Some of these rate design criteria are listed below: x Rates which are easy to understand from the customer’s perspective x Rates which are easy for the utility to administer x Consideration of the customer’s ability to pay x Continuity, over time, of the rate making philosophy x Policy considerations (encourage efficient use, economic development, etc.) x Provide revenue stability from month-to-month and year-to-year x Promote efficient allocation of the resource x Equitable and non-discriminatory (cost-based) x Compliance with any State laws or requirements It is important that the District provide its customers with an appropriate price signal as to how much the wastewater services cost. This goal may be approached through the rate designs level and structure. When developing the proposed rate designs, all the above-listed criteria were taken into consideration. It should be noted that it is difficult - if not impossible - to design a rate that meets all of the goals and objectives listed above. For example, it may be difficult to design a sewer rate that takes into consideration customers’ ability to pay and one which is cost-based. However, to meet the intent of Proposition 218, equitable and cost-based rates are the key components that needs to be considered when developing the District’s proposed sewer rates. Although the other goals and objectives may be taken into consideration to develop the rate structure, the proposed rates are ultimately based on the cost of service analysis to meet the intent of Proposition 218. 5.3 Development of Cost-Based Sewer Rates A key objective for this study is to meet the legal requirements of Proposition 218 and clearly document the steps taken to meet those requirements. This results in the development of cost- based and equitable sewer rates. Given this, the development of the District’s proposed sewer rates have been closely reviewed to meet the legal requirements of California Constitution article XIII D, section 6 (Article XIII D). A key component of Article XIII D is the development of rates which reflect the cost of providing service and are proportionally distributed between the various Development of the Sewer Rate Design 33 Otay Water District – Comprehensive Sewer Rate Study customer classes of service. HDR would point out that there is not a single methodology for equitably assigning sewer costs to the various customer groups. The Water Environment Federation Manual of Practice No. 27 provides various and differing methodologies which may be used to establish cost-based sewer rates. Unfortunately, Article XII D is not prescriptive and does not provide a single or specific methodology for establishing legally compliant sewer rates. Given that, HDR conducted this study using generally accepted rate setting methodologies, tailored to the District’s specific facilities and customers, in order meet the intent (i.e., requirements) of Article XIII D. Furthermore, the rate setting methodology used in the District’s study are based on the WEF MOP #27 and are, therefore, reasonable and appropriate. HDR is of the opinion that the proposed rates meet the legal requirements of Article XIII D. HDR reaches this conclusion based upon the following: x The revenue derived from sewer rates does not exceed the funds required to provide the property related service (i.e., sewer service). The proposed rates are designed to collect the overall revenue requirement of the District’s sewer system. x The revenues derived from sewer rates shall not be used for any purpose other than that for which the fee or charge is imposed. The revenues derived from the District’s sewer rates are used exclusively to operate and maintain the District’s sewer system. x The amount of a fee or charge imposed upon a parcel or person as an incident of property ownership shall not exceed the proportional costs of the service attributable to the parcel. This cost of service analysis, and this report, has focused on the issue of proportional assignment of costs to customer classes of service in accordance with generally accepted cost of service principles. The proposed rates have appropriately grouped customers into customer classes of service (e.g., residential, multi-residential, commercial) that reflect the varying consumption patterns and system requirements (i.e., the benefits they receive from and burdens they place on the system) of each customer class of service. The grouping of customers and rates into these classes of service creates the equity and fairness expected under Proposition 218 by having differing rates by customer classes of service which reflect both the level of revenue to be collected by the utility, and the manner in which these costs are incurred and equitably assigned to customer classes of service based upon their proportional impacts. 5.4 Overview of the Present Sewer Rate Structure The District currently has three rate schedules; a residential rate schedule, a multi-residential rate schedule, and a commercial rate schedule. Provided below is a more detailed discussion of the present rate structures by customer class of service. Residential - The District’s current residential sewer rate has a flat monthly fixed charge and a variable consumption charge based on 85% of the customers’ winter water average. As mentioned previously, as part of the rate study update and evaluation of alternative residential rate structures, it is recommended that the District transition to a 3-year average for the winter water average calculation. The winter water average for wastewater volume contribution estimation is a generally-accepted sewer rate structure and it is used by sewer utilities across Development of the Sewer Rate Design 34 Otay Water District – Comprehensive Sewer Rate Study California and the U.S. The fixed charge provides revenue stability for the District as well as reflects the fact that the majority of the District’s costs are fixed in nature and not a function of the volume of wastewater contributed or conveyed on the system. As noted under the discussion of the volume allocation factor, the reasoning behind billing residential customers on 85% of average winter water use is to attempt to extract outdoor use or non-returned usage. Multi-Residential - Multi-residential customers have essentially the same rate structure as residential customers. The rate design has a fixed monthly charge and a volumetric component charged on 85% of the customer’s winter water average. As with the residential customer class, it is recommended that the District transition the winter water average calculation to a three year average. An important difference between residential and multi-residential is that the fixed component for multi-residential is based upon the service meter size. This is done in an attempt to reflect the fact that a customer with a larger meter has the potential to use a great amount of system capacity. Just as with residential, the consumption charge is based on the average winter water usage to reflect a customers’ sewer flow contribution. Commercial - Commercial customers also have a similar structure to both residential and multi- residential with a fixed monthly charge based on meter size with a volumetric consumption charge on a per CCF basis. There are two key differences in the commercial rates compared to the other rates. First, the commercial rate is segregated between low, medium and high-strength wastewater. Additionally, commercial customers are billed on 85% of their average annual consumption as opposed to just the winter water average as is used for residential and multi- residential customers. As noted within the discussion of the volume distribution factor this difference in determining volumetric billing units is based upon the assumption that large commercial customers will have an irrigation meter for outdoor water use and therefore domestically metered water should closely represent their wastewater flow contributions. 5.5 Development of the Proposed Sewer Rates The revenue requirement analysis was used to determine the adequate and prudent level of funding needed to operate the District’s sewer system. The results of the revenue requirement analysis provided the recommended rate adjustments needed to fully fund the District’s sewer utility. Given the development of the overall revenue needs of the utility, the next component of the sewer rate study was the cost of service analysis. The average unit costs calculated in the cost of service analysis in Section 4.6 are used within the design of the final proposed rates. In doing so, the average unit costs are reflective of the distribution of costs to each specific customer class of service, but more importantly, provides the cost-basis for the relationship between the fixed and volumetric charges. Provided below in Table 5 - 1 is a summary of the present and proposed sewer rates for the District. Development of the Sewer Rate Design 35 Otay Water District – Comprehensive Sewer Rate Study Table 5 – 1 Summary of the Present and Proposed Sewer Rates Present Rates FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Fixed Charge ($/Month) Residential Monthly System Fee $16.38 $16.13 $17.10 $18.22 $19.15 $20.60 Multi-Resident. / Comm. 3/4" $16.38 $16.13 $17.10 $18.22 $19.15 $20.60 1" 40.94 40.32 42.74 45.54 47.86 51.49 1-1/2" 81.88 80.63 85.48 91.08 95.73 102.97 2" 131.00 129.00 136.76 145.72 153.15 164.75 3" 245.64 241.89 256.44 273.23 287.18 308.92 4" 409.40 403.15 427.40 455.39 478.63 514.87 6" 818.79 806.29 854.78 910.77 957.25 1,029.74 8" 1,310.08 1,290.08 1,367.67 1,457.24 1,531.63 1,647.60 10" 1,883.23 1,854.49 1,966.01 2,094.78 2,201.70 2,368.41 Variable Charge ($/CCF) Residential Billed @ 85% of WW Avg $2.93 $2.89 $3.06 $3.26 $3.42 $3.59 Multi-Residential Billed @ 85% of WW Avg $2.93 $2.89 $3.06 $3.26 $3.42 $3.59 Commercial Low Strength $2.93 $2.89 $3.06 $3.26 $3.42 $3.59 Schools 2.93 2.89 3.06 3.26 3.42 3.59 Churches 2.93 2.89 3.06 3.26 3.42 3.59 Medium Strength 3.64 3.29 3.49 3.71 3.90 4.09 High Strength 5.01 4.63 4.91 5.23 5.48 5.76 In viewing the present and proposed rate designs it should be noted that the structure of the fixed rates has not changed. However, as noted the calculation of the winter water average for residential and multi-residential has moved to a 3-year average. The proposed rates are shown based on the cost of service adjustment for FY 2021 and the proposed rate adjustments in FY 2022 through FY 2025. The customer bill impacts from these proposed rates will vary by customer class of service and by consumptive use. As an example, in FY 2021 and for a typical residential customer being billed 8 CCF / month, their monthly bill will change from $39.82 currently to $39.25 under the proposed rates or an decrease of $0.57. Shown below in Table 5 – 2 is a summary of the allocated costs and the revenue that the proposed rates are calculated to produce. Development of the Sewer Rate Design 36 Otay Water District – Comprehensive Sewer Rate Study Table 5 – 2 FY 2021 Proposed Revenues and Allocated Costs ($000’s) Present Revenues Allocated Revenues Proposed Revenues Low Strength [1] $2,164 $2,127 $2,119 Medium Strength 280 295 296 High Strength 298 321 330 Total $2,743 $2,743 $2,744 5.6 Consultant’s Rate Design Conclusions and Recommendations The development of the proposed sewer rates is based on the overall level of revenues developed as part of the revenue requirement analysis and the proportional allocation of costs to the customer classes of service based on the cost of service recommendations. HDR would recommend the adoption of the proposed rates which are cost-based, equitable, proportionate to the cost of service, and reflect the specific costs of the District’s sewer system. 5.7 Summary This completes the comprehensive sewer rate study for the District. This study has provided a comprehensive review of the District’s sewer rates. The study is intended to provide to the District a set of cost-based rates that will allow the District to meet their current and projected sewer system financial obligations and major capital projects for the time period reviewed, while meeting the requirements of Proposition 218. Technical Appendix FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Revenues Rate Revenues $2,871,898 $2,742,663 $2,742,663 $2,742,663 $2,742,663 $2,742,663 Other Revenues 107,500 173,666 255,432 357,399 529,265 116,332------------------------------------------------------------------------------------------Total Revenues $2,979,398 $2,916,329 $2,998,095 $3,100,061 $3,271,928 $2,858,995 Expenses Total Operations & Maintenance $2,795,300 $2,822,259 $2,915,938 $3,017,364 $3,123,297 $3,270,326 Total Taxes / Transfer 39,400 41,200 43,200 45,600 48,200 51,700 Rate Funded Capital 0 0 0 0 0 0 Net Debt Service 0 0 0 0 0 0 Total To / (From) Reserves 144,698 52,870 162,376 390,064 673,188 345,120------------------------------------------------------------------------------------------Total Expenses $2,979,398 $2,916,329 $3,121,515 $3,453,028 $3,844,685 $3,667,146 Bal. / (Def.) of Funds $0 $0 ($123,420)($352,967)($572,757)($808,151) Bal. as a % of Rate Revenues 0.0%0.0%4.5%12.9%20.9%29.5% Proposed Rate Adjustment 0.0%0.0%9.0%7.1%7.1%7.1% Add'l Revenue from Adj.$0 $0 $123,420 $352,967 $572,757 $808,151 Total Bal. / (Def.) of Funds $0 $0 $0 ($0)$0 $0 Add'l Rate Increase Needed 0.0%0.0%0.0%0.0%0.0%0.0% Avg Residential Monthly Bill (Flat rate + 12 CCF)$51.54 $51.54 $56.18 $60.17 $64.44 $69.01 Debt Service Coverage Ratio Before Rate Adjustment 4.14 0.71 0.36 0.22 0.39 N/A After Proposed Rate Adj.4.14 N/A N/A 1.15 1.91 1.05 Ending Balance $4,181,481 $3,746,264 $6,536,988 $5,700,364 $4,816,837 $3,469,411 Revenue Requirement Summary Exhibit 1 Sewer Cost of Service Study Otay Water District 1 of 27 04/13/2020 DR A F T Otay Water District Sewer Cost of Service Study Exhibit 2 Escalation Factors Budget FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Revenues As Customer GrowthCustomer Growth Budget -4.50%0.0%0.0%0.0%0.0% As Miscellaneous RevenuesMiscellaneous Revenues Budget 0.3%0.3%0.3%0.3%0.3% As FlatFlat Budget 0.0%0.0%0.0%0.0%0.0% Expenses As LaborLabor Budget 3.0%3.0%3.0%3.0%3.0% As Benefits - OtherBenefits - Other Budget 3.0%3.0%3.0%3.0%3.0% As Benefits - MedicalBenefits - Medical Budget 5.5%5.0%5.0%5.0%5.0% As Materials & MaintenanceMaterials & Maintenance Budget 4.0%4.0%4.0%4.0%4.0% As AdministrativeAdministrative Budget 3.0%3.0%3.0%3.0%3.0% As EquipmentEquipment Budget 4.0%4.0%4.0%4.0%4.0% As MiscellaneousMiscellaneous Budget 2.0%2.0%2.0%2.0%2.0% As FlatFlat Budget 0.0%0.0%0.0%0.0%0.0% As UtilitiesUtilities Budget 3.0%3.0%3.0%3.0%3.0% As PowerPower Budget 5.0%4.0%4.0%4.0%4.0% Growth Budget -4.5%0.0%0.0%0.0%0.0% Interest Earnings 1.2%1.3%1.5%1.6%1.8%1.9% Revenue Bond Term in Years 20 20 20 20 20 20 Interest Rate 5.0%5.0%5.0%5.0%5.0%5.0% Projected 2 of 27 04/13/2020 DR A F T Otay Water District Sewer Cost of Service Study Page 1 of 5 Exhibit 3 Revenue Requirement Budget FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Revenues Rate Revenues Residential $2,266,213 $2,164,233 $2,164,233 $2,164,233 $2,164,233 $2,164,233 As Customer Growth Multi-Residential 293,688 280,472 280,472 280,472 280,472 280,472 As Customer Growth Commercial Low Strength $223,120 $213,079 $213,079 $213,079 $213,079 $213,079 As Customer Growth Medium Strength 32,936 31,454 31,454 31,454 31,454 31,454 As Customer Growth High Strength 55,942 53,424 53,424 53,424 53,424 53,424 As Customer Growth------------------------------------------------------------------------------------------Total Rate Revenues $2,871,898 $2,742,663 $2,742,663 $2,742,663 $2,742,663 $2,742,663 Other Revenues Availability Revenues $52,200 $51,900 $52,100 $52,400 $52,600 $52,900 District Provided Sewer Revenue from Shared Facility (SVSD)28,300 29,700 31,200 32,800 34,400 36,100 District Provided Late Fee 22,000 22,066 22,132 22,199 22,265 22,332 As Miscellaneous Revenues Grants - SDCWA Shared Facil Replcmnt 5,000 70,000 150,000 250,000 420,000 5,000 District Provided------------------------------------------------------------------------------------------Total Other Revenues $107,500 $173,666 $255,432 $357,399 $529,265 $116,332 Total Revenue $2,979,398 $2,916,329 $2,998,095 $3,100,061 $3,271,928 $2,858,995 Power Costs $154,300 $162,015 $168,496 $175,235 $182,245 $189,535 As Power Administrative Expenses Directors Fees $0 $0 $0 $0 $0 $0 As Labor Travel and Meetings 0 0 0 0 0 0 As Miscellaneous Conservation and Outreach 0 0 0 0 0 0 As Labor General Office Expense 0 0 0 0 0 0 As Materials & Maintenance Equipment 23,300 23,999 24,719 25,461 26,224 27,011 As Administrative Fees 3,800 3,914 4,031 4,152 4,277 4,405 As Administrative Services 50,300 51,809 53,363 54,964 56,613 58,311 As Administrative Training 0 0 0 0 0 0 As Labor Utilities 0 0 0 0 0 0 As Utilities Bad Debt Expense 4,300 4,300 4,300 4,300 4,300 4,300 As Flat Interest Expense 0 0 0 0 0 0 As Miscellaneous Other Employee Benefits 0 0 0 0 0 0 As Benefits - Other WO Allocation - Sewer 200,200 204,204 208,288 212,454 216,703 221,037 As Miscellaneous------------------------------------------------------------------------------------------Total Administrative Expenses $281,900 $288,226 $294,702 $301,331 $308,117 $315,065 Notes Projected 3 of 27 04/13/2020 DR A F T Otay Water District Sewer Cost of Service Study Page 2 of 5 Exhibit 3 Revenue Requirement Budget FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Notes Projected Materials & Maintenance Fuel & Oil $0 $0 $0 $0 $0 $0 As Utilities Meters & Materials 0 0 0 0 0 0 As Materials & Maintenance Fleet Parts & Equipment 8,000 8,320 8,653 8,999 9,359 9,733 As Equipment Communication Equipment 0 0 0 0 0 0 As Equipment Landscaping Materials 0 0 0 0 0 0 As Materials & Maintenance Infrastructure Equipment & Supplies 132,900 138,216 143,745 149,494 155,474 161,693 As Equipment Chemicals 27,400 28,496 29,636 30,821 32,054 33,336 As Materials & Maintenance Safety Equipment 7,000 7,280 7,571 7,874 8,189 8,517 As Equipment Laboratory Equipment & Supplies 5,600 5,824 6,057 6,299 6,551 6,813 As Equipment Other Materials & Supplies 100 104 108 112 117 122 As Materials & Maintenance Building & Grounds Materials 0 0 0 0 0 0 As Materials & Maintenance Contracted Services 158,800 165,152 171,758 178,628 185,774 193,204 As Materials & Maintenance Metro O&M Costs 600,900 630,945 662,492 695,617 730,398 803,437 District Provided Spring Valley Sewer Charge 251,100 185,200 185,200 185,200 185,200 185,200 District Provided Chula Vista Capacity Fee 0 0 0 0 0 0 As Miscellaneous Metro Capacity Fee 0 0 0 0 0 0 As Miscellaneous------------------------------------------------------------------------------------------Total Materials & Maintenance $1,191,800 $1,169,537 $1,215,220 $1,263,046 $1,313,116 $1,402,056 Labor & Benefits Labor $472,500 $486,675 $501,275 $516,314 $531,803 $547,757 As Labor WO Allocation - Sewer 343,200 353,496 364,101 375,024 386,275 397,863 As Labor Vacation/Sick/Holidays 47,100 48,513 49,968 51,467 53,011 54,602 As Benefits - Other FICA (Soc Sec/Medicare)36,000 37,080 38,192 39,338 40,518 41,734 As Benefits - Other Pension 81,600 84,048 86,569 89,167 91,842 94,597 As Benefits - Other Health/Dental/Life Insurance 94,300 99,487 104,461 109,684 115,168 120,926 As Benefits - Medical Worker's Compensation 49,600 52,328 54,944 57,692 60,576 63,605 As Benefits - Medical Salary Continuation Insurance 1,800 1,854 1,910 1,967 2,026 2,087 As Benefits - Other Employee Awards 0 0 0 0 0 0 As Benefits - Other OPEB 41,200 39,000 36,100 37,100 38,600 40,500 District Provided State Unemployment Insurance 0 0 0 0 0 0 As Benefits - Other Employee Assistance Program 0 0 0 0 0 0 As Benefits - Other Employee Programs 0 0 0 0 0 0 As Benefits - Other Uniforms 0 0 0 0 0 0 As Benefits - Other------------------------------------------------------------------------------------------Total Labor & Benefits $1,167,300 $1,202,481 $1,237,521 $1,277,752 $1,319,819 $1,363,670 4 of 27 04/13/2020 DR A F T Otay Water District Sewer Cost of Service Study Page 3 of 5 Exhibit 3 Revenue Requirement Budget FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Notes Projected Taxes / Transfer General Fund $0 $0 $0 $0 $0 $0 As Miscellaneous Betterment Fund 0 0 0 0 0 0 As Miscellaneous Replacement Fund 0 0 0 0 0 0 As Miscellaneous OPEB Fund 39,400 41,200 43,200 45,600 48,200 51,700 District Provided------------------------------------------------------------------------------------------Total Taxes / Transfer $39,400 $41,200 $43,200 $45,600 $48,200 $51,700 Rate Funded Capital $0 $0 $0 $0 $0 $0 Debt Service Existing Debt $0 $0 $0 $0 $0 $0 New Sewer Loan 0 0 0 0 0 0 Calculated @ 1.7% for 30 yrs FY 2020 Issuance 44,467 133,400 177,275 177,275 177,275 177,275 District Provided FY 2022 Issuance 0 0 51,137 201,250 201,250 201,250 District Provided------------------------------------------------------------------------------------------Total Debt Service $44,467 $133,400 $228,412 $378,525 $378,525 $378,525 Total Less Replacement Reserves $44,467 $133,400 $228,412 $378,525 $378,525 $378,525 Net Debt Service $0 $0 $0 $0 $0 $0 To / (From) Reserves To / (From) Operating Reserves ($567,302)($172,130)($351,824)($380,536)($406,012)($421,680)District Provided To / (From) Replacement Reserves 143,000 (118,000)20,000 75,000 417,000 250,000 District Provided To / (From) Betterment Reserves 523,000 288,000 389,200 531,600 556,200 516,800 District Provided To / (From) Expansion Reserves 46,000 55,000 105,000 164,000 106,000 0 District Provided------------------------------------------------------------------------------------Total To / (From) Reserves $144,698 $52,870 $162,376 $390,064 $673,188 $345,120 FY 2016 Depr. Exp. =$1,017,180 5 of 27 04/13/2020 DR A F T Otay Water District Sewer Cost of Service Study Page 4 of 5 Exhibit 3 Revenue Requirement Budget FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Notes Projected Total Revenue Requirement $2,979,398 $2,916,329 $3,121,515 $3,453,028 $3,844,685 $3,667,146 Bal. / (Def.) of Funds $0 $0 ($123,420)($352,967)($572,757)($808,151) Bal. as a % of Rate Revenues 0.0%0.0%4.5%12.9%20.9%29.5% Proposed Rate Adjustment 0.0%0.0%9.0%7.1%7.1%7.1% Months of Adjustment 6 6 6 6 6 6 Jan 1 st Implementation Add'l Revenue from Adj.$0 $0 $123,420 $352,967 $572,757 $808,151 Total Bal. / (Def.) of Funds $0 $0 $0 ($0)$0 $0 Add'l Rate Increase Needed 0.0%0.0%0.0%0.0%0.0%0.0% Avg Residential Monthly Bill (Flat rate + 12 CCF) After Rate Adjustment $51.54 $51.54 $56.18 $60.17 $64.44 $69.01 Annual $ Change 0.00 0.00 4.64 3.99 4.27 4.58 Debt Service Coverage Ratio Before Rate Adjustment 4.14 0.71 0.36 0.22 0.39 N/A After Proposed Rate Adj.4.14 N/A N/A 1.15 1.91 1.05 Beginning Balance $3,242,849 $4,181,481 $3,746,264 $6,536,988 $5,700,364 $4,816,837 Sewer Operating Reserves Beginning Cash Reserve Balance $1,255,463 $699,823 $535,672 $189,244 ($191,308)($604,418) Plus: Additions 0 0 0 0 0 0 Interest 11,662 7,979 5,396 (16)(7,098)(15,490) Less: Transfer to Betterment 0 0 0 0 0 0 Less: Uses of Funds (567,302)(172,130)(351,824)(380,536)(406,012)(421,680) Ending Balance $699,823 $535,672 $189,244 ($191,308)($604,418)($1,041,587) Target Minimum - 90 Days of O&M $689,252 $695,899 $718,999 $744,008 $770,128 $806,382 6 of 27 04/13/2020 DR A F T Otay Water District Sewer Cost of Service Study Page 5 of 5 Exhibit 3 Revenue Requirement Budget FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Notes Projected Sewer Replacement Reserves Beginning Cash Reserve Balance $1,287,812 $3,329,994 $2,820,187 $5,575,159 $4,932,558 $4,444,702 Plus: Additions 143,000 0 20,000 75,000 417,000 250,000 Plus: Debt Proceeds 3,000,000 0 3,450,000 0 0 0 Interest 9,649 39,718 36,814 83,395 83,643 75,011 Less: Debt Funding (44,467)(133,400)(228,412)(378,525)(378,525)(378,525) Less: Uses of Funds (1,066,000)(416,125)(523,430)(422,470)(609,974)(864,986) Ending Balance $3,329,994 $2,820,187 $5,575,159 $4,932,558 $4,444,702 $3,526,202 Target Minimum - 4% of current assets $1,558,500 $1,582,300 $1,625,900 $1,656,100 $1,703,000 $1,744,700 Sewer Betterment Reserves Beginning Cash Reserve Balance $722,460 $131,051 $263,805 $502,172 $571,250 $647,084 Plus: Additions 523,000 288,000 389,200 531,600 556,200 516,800 Plus: Transfer From Operating 0 0 0 0 0 0 Interest 5,091 2,550 5,702 8,519 10,867 12,221 Less: Uses of Funds (1,119,500)(157,795)(156,535)(471,042)(491,233)(524,507) Ending Balance $131,051 $263,805 $502,172 $571,250 $647,084 $651,598 Target Min - 180 days of Betterment exp.$77,817 $77,195 $232,295 $242,252 $258,661 $258,661 Sewer Expansion Reserves Beginning Cash Reserve Balance ($22,886)$20,614 $126,600 $270,412 $387,863 $329,469 Plus: Additions 46,000 55,000 105,000 164,000 106,000 0 Plus: Capacity Fees 0 71,115 72,892 74,715 0 0 District Provided Interest 0 951 2,955 5,224 6,398 6,236 Less: Uses of Funds (2,500)(21,080)(37,035)(126,488)(170,793)(2,507) Ending Balance $20,614 $126,600 $270,412 $387,863 $329,469 $333,198 Target Min - 180 days of Expansion exp.$29,622 $30,511 $31,426 $32,369 $33,340 $34,340 Ending Balance $4,181,481 $3,746,264 $6,536,988 $5,700,364 $4,816,837 $3,469,411 Total Minimum Reserve Level $2,355,191 $2,385,906 $2,608,619 $2,674,728 $2,765,129 $2,844,083 7 of 27 04/13/2020 DR A F T Otay Water District Page 1 of 2 Sewer Cost of Service Study Inflation =0.0% Exhibit 4 Capital Improvement Plan Project #FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Total Expansion Projects $2,500 $21,080 $37,035 $126,488 $170,793 $2,507 Total Betterment Projects $1,119,500 $157,795 $156,535 $471,042 $491,233 $524,507 Replacement SDCSD / RSD Outfall Replacement S2012 $50,000 $50,000 $125,000 $125,000 $125,000 $125,000 Campo Road Sewer Main Replac. (50%)S2024 750,000 15,000 0 0 0 0 Rancho San Diego Pump Station Rehab.S2027 5,000 5,000 0 0 0 0 Fuerte Drive Sewer Relocation S2045 20,000 0 0 0 0 0 RWCWRF - Aeration Panels Replacement S2046 5,000 0 0 0 0 0 Hillsdale Road Sewer Repairs S2048 5,000 0 0 0 0 0 Calavo Basin Sewer Rehabilitation - Ph 2 S2049 40,000 200,000 740,000 5,000 0 0 Rancho San Diego Basin Sewer Rehab. - Ph 2 S2050 5,000 5,000 5,000 30,000 175,000 600,000 RWCWRF - Headworks Improvements S2051 5,000 0 0 0 0 0 RWCWRF - Sedimentation Basins Weirs Rplcmnt S2053 1,000 0 0 0 0 0 Calavo Basin Sewer Rehabilitation - Ph 3 S2054 0 0 0 0 0 10,000 Steele Canyon Pump Station Rplcmnt (75%)S2060 0 0 0 7,500 30,000 112,500 RWCWRF Aeration Controls Consolid. & Opti. Upgrades S2061 30,000 150,000 40,000 0 0 0 Rancho San Diego Basin Sewer Rehabilitation - Ph 3 S2066 0 0 0 0 0 10,000 RWCWRF Roofing Rplcmnt & Natural Light Enhanc.S2067 145,000 0 0 0 0 0 Cottonwood Sewer PS Renovation (50%)S2069 5,000 70,000 150,000 250,000 420,000 5,000------------------------------------------------------------------------------------------Total Replacement Projects $1,066,000 $298,125 $523,430 $422,470 $609,974 $864,986 Notes 8 of 27 04/13/2020 DR A F T Otay Water District Page 2 of 2 Sewer Cost of Service Study Inflation =0.0% Exhibit 4 Capital Improvement Plan Project #FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Notes Future Unidentified CIP $0 $0 $0 $0 $0 $0 Transfer to Replacement Fund $0 $0 $0 $0 $0 $0 Total Capital Projects $2,188,000 $477,000 $717,000 $1,020,000 $1,272,000 $1,392,000 Less: Other Funding Sources Sewer Operating Reserves $0 $0 $0 $0 $0 $0 Sewer Replacement Reserves 1,066,000 298,125 523,430 422,470 609,974 864,986 Sewer Betterment Reserves 1,119,500 157,795 156,535 471,042 491,233 524,507 Sewer Expansion Reserves 2,500 21,080 37,035 126,488 170,793 2,507 New Long Term Debt 0 0 0 0 0 0------------------------------------------------------------------------------------Total Less: Other Funding Sources $2,188,000 $477,000 $717,000 $1,020,000 $1,272,000 $1,392,000 Rate Funded Capital $0 $0 $0 $0 $0 $0 9 of 27 04/13/2020 DR A F T Otay Water District Sewer Cost of Service Study Page 1 of 3 Exhibit 5 Revenues at Present Rates 1-Jan-19 1-Jan-20 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Total Residential Fixed Charge Monthly System Fee $14.91 $16.38 4,605 4,605 4,605 4,605 4,605 4,605 4,605 4,605 4,605 4,605 4,605 4,605 4,605-------------------------------------------------------------------------------------------------------------------------------------------------$68,661 $68,661 $68,661 $68,661 $68,661 $68,661 $75,430 $75,430 $75,430 $75,430 $75,430 $75,430 $864,543 Consumption Charge Billed @ 85% of WW Avg $2.67 $2.93 50,303 50,303 50,303 50,303 50,303 50,303 33,892 33,892 33,892 33,892 33,892 33,892 505,168--------------------------------------------------------------------------------------------------------------------------------------------------------------$134,309 $134,309 $134,309 $134,309 $134,309 $134,309 $99,303 $99,303 $99,303 $99,303 $99,303 $99,303 $1,401,670 Total Residential Revenue $202,969 $202,969 $202,969 $202,969 $202,969 $202,969 $174,733 $174,733 $174,733 $174,733 $174,733 $174,733 $2,266,213 Multi-Residential Fixed Charge 3/4"$14.91 $16.38 0 0 0 0 0 0 0 0 0 0 0 0 0 1"37.27 40.94 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1/2"74.55 81.88 0 0 0 0 0 0 0 0 0 0 0 0 0 2"119.27 131.00 39 39 39 39 39 39 39 39 39 39 39 39 39 3"223.64 245.64 5 5 5 5 5 5 5 5 5 5 5 5 5 4"368.97 409.40 6 6 6 6 6 6 6 6 6 6 6 6 6 6"729.04 818.79 0 0 0 0 0 0 0 0 0 0 0 0 0 8"1,161.15 1,310.08 0 0 0 0 0 0 0 0 0 0 0 0 0 10"1,665.25 1,883.23 0 0 0 0 0 0 0 0 0 0 0 0 0--------------------------------------------------------------------------------------------------------50 50 50 50 50 50 50 50 50 50 50 50 50 $7,984 $7,984 $7,984 $7,984 $7,984 $7,984 $8,794 $8,794 $8,794 $8,794 $8,794 $8,794 $100,663 Consumption Charge Billed @ 85% of WW Avg $2.67 $2.93 6,160 6,160 6,160 6,160 6,160 6,160 5,366 5,366 5,366 5,366 5,366 5,366 69,159------------------------------------------------------------------------------------------------------------------------------------------------------------$16,447 $16,447 $16,447 $16,447 $16,447 $16,447 $15,724 $15,724 $15,724 $15,724 $15,724 $15,724 $193,025 Total Multi-Residential Revenue $24,431 $24,431 $24,431 $24,431 $24,431 $24,431 $24,517 $24,517 $24,517 $24,517 $24,517 $24,517 $293,688 Rates Effective $ / CCF $ / Acct. / Mo. $ / Acct. / Mo. $ / CCF 10 of 27 04/13/2020 DR A F T Otay Water District Sewer Cost of Service Study Page 2 of 3 Exhibit 5 Revenues at Present Rates 1-Jan-19 1-Jan-20 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Total Rates Effective Commercial Fixed Charge 3/4"$14.91 $16.38 22 22 22 22 22 22 22 22 22 22 22 22 22 1"37.27 40.94 5 5 5 5 5 5 5 5 5 5 5 5 5 1 1/2"74.55 81.88 20 20 20 20 20 20 20 20 20 20 20 20 20 2"119.27 131.00 23 23 23 23 23 23 23 23 23 23 23 23 23 3"223.64 245.64 1 1 1 1 1 1 1 1 1 1 1 1 1 4"368.97 409.40 0 0 0 0 0 0 0 0 0 0 0 0 0 6"729.04 818.79 1 1 1 1 1 1 1 1 1 1 1 1 1 8"1,161.15 1,310.08 0 0 0 0 0 0 0 0 0 0 0 0 0 10"1,665.25 1,883.23 1 1 1 1 1 1 1 1 1 1 1 1 1-------------------------------------------------------------------------------------------------------- 73 73 73 73 73 73 73 73 73 73 73 73 73 $7,367 $7,367 $7,367 $7,367 $7,367 $7,367 $8,163 $8,163 $8,163 $8,163 $8,163 $8,163 $93,179 Consumption Charge (85% of water use) Low Strength $2.67 $2.93 2,039 2,178 2,069 1,913 1,841 1,639 1,486 1,214 999 1,055 1,698 1,955 20,086 Schools 2.67 2.93 4,028 5,689 5,390 4,345 3,761 2,369 1,077 1,256 1,293 1,811 4,138 2,751 37,908 Churches 2.67 2.93 280 311 462 367 306 305 276 309 205 191 240 262 3,514 Medium Strength 3.31 3.64 447 592 627 430 557 585 485 498 404 429 502 537 6,093 High Strength 4.56 5.01 517 604 585 452 529 474 447 436 393 384 453 540 5,814-----------------------------------------------------------------------------------------------------------------------------------------------7,311 9,374 9,133 7,507 6,994 5,372 3,771 3,713 3,294 3,870 7,031 6,045 73,415 $20,784 $26,549 $25,892 $21,173 $20,030 $15,614 $12,323 $12,140 $10,756 $12,442 $21,899 $19,216 $218,818 Total Commercial Revenue $28,150 $33,916 $33,259 $28,540 $27,397 $22,980 $20,486 $20,303 $18,919 $20,606 $30,063 $27,380 $311,997 $ / CCF $ / Acct. / Mo. 11 of 27 04/13/2020 DR A F T Otay Water District Sewer Cost of Service Study Page 3 of 3 Exhibit 5 Revenues at Present Rates 1-Jan-19 1-Jan-20 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Total Rates Effective Summary Customers Residential 4,605 4,605 4,605 4,605 4,605 4,605 4,605 4,605 4,605 4,605 4,605 4,605 4,605 Multi-Residential 50 50 50 50 50 50 50 50 50 50 50 50 50 Commercial 73 73 73 73 73 73 73 73 73 73 73 73 73----------------------------------------------------------------------------------------------------------------------------------4,728 4,728 4,728 4,728 4,728 4,728 4,728 4,728 4,728 4,728 4,728 4,728 4,728 Consumption Residential (85% of WW avg)50,303 50,303 50,303 50,303 50,303 50,303 33,892 33,892 33,892 33,892 33,892 33,892 505,168 Multi-Residential (85% of WW avg)6,160 6,160 6,160 6,160 6,160 6,160 5,366 5,366 5,366 5,366 5,366 5,366 69,159 Commercial (85% of annual use)7,311 9,374 9,133 7,507 6,994 5,372 3,771 3,713 3,294 3,870 7,031 6,045 73,415-----------------------------------------------------------------------------------------------------------------------------------------------63,774 65,837 65,596 63,970 63,457 61,835 43,029 42,971 42,552 43,128 46,289 45,303 647,742 Revenue Residential $202,969 $202,969 $202,969 $202,969 $202,969 $202,969 $174,733 $174,733 $174,733 $174,733 $174,733 $174,733 $2,266,213 Multi-Residential 24,431 24,431 24,431 24,431 24,431 24,431 24,517 24,517 24,517 24,517 24,517 24,517 293,688 Commercial Low Strength $21,157 $26,046 $25,359 $21,899 $19,985 $15,726 $12,961 $12,785 $11,959 $13,600 $22,445 $19,199 $223,120 Medium Strength 2,419 2,899 3,015 2,363 2,783 2,876 2,797 2,844 2,502 2,593 2,859 2,986 32,936 High Strength 4,574 4,971 4,885 4,278 4,629 4,378 4,729 4,673 4,458 4,413 4,759 5,195 55,942--------------------------------------------------------------------------------------------------------------------------------------------------------------$255,550 $261,315 $260,658 $255,939 $254,797 $250,380 $219,737 $219,553 $218,169 $219,856 $229,313 $226,630 $2,871,898 FY 2020 Budget $2,868,000 Difference $3,898 Percent 0.1% 12 of 27 04/13/2020 DR A F T Otay Water District Sewer Cost of Service Study Exhibit 6 Volume Allocation Factor Billed Billing Total Annual Avg. Daily Flow Factor Flow at Plant Flow At % of (CCF) [1]Adj.(CCF)Plant (mgd)Total Residential 439,192 1.00 439,192 0.90 75.4% Multi-Residential 67,968 1.00 67,968 0.14 11.7% Commercial Low StrengthLow Strength 62,892 1.00 62,892 0.13 10.8% Medium StrengthMedium Strength 6,230 1.00 6,230 0.01 1.1% High StrengthHigh Strength 5,945 1.00 5,945 0.01 1.0%0 ----------------------------------------------Total 582,227 582,227 1.19 100.0% Actual Flows [2]1.08 (VOL) Notes [2] - Provided by District [1] - Res/Multi based on estimated 2021/2022 winter water average calculation (Jan - April avg * 85%); Commercial based on 2018 & 2019 annual average calculation (Jan - Dec avg * 85%) 13 of 27 04/13/2020 DR A F T Otay Water District Sewer Cost of Service Study Exhibit 7 Customer Allocation Factors Number of % of Number of Weighting Weighted % of Bills [1]Total Bills Factor [2]Customer Total Residential 4,605 97.4%4,605 1.00 4,605 81.6% Multi-Residential 50 1.1%50 10.74 537 9.5% Commercial Low StrengthLow Strength 53 1.1%53 5.35 284 5.0% Medium StrengthMedium Strength 12 0.3%12 5.25 63 1.1% High StrengthHigh Strength 8 0.2%8 19.00 152 2.7%-----------------------------------------------------Total 4,728 100.0%4,728 5,641 100.0% (AC)(WCA) Notes [1] - Based on FY 2019 Billing Data [2] - Developed in the weighted meter exhibit Table 1 Actual Customer Weighted Customer 14 of 27 04/13/2020 DR A F T Otay Water District Sewer Cost of Service Study Exhibit 8 Strength Allocation Factors Annual Flow Avg. Factor Calculated % of Avg. Factor Calculated % of (mgd)(mg/l)[2]Pounds [1]Total (mg/l)[2]Pounds [1]Total Residential 0.90 220 603,122 72.0%240 657,951 72.4% Multi-Residential 0.14 220 93,338 11.1%240 101,823 11.2% Commercial Low StrengthLow Strength 0.13 220 86,367 10.3%240 94,218 10.4% Medium StrengthMedium Strength 0.01 460 17,889 2.1%460 17,889 2.0% High StrengthHigh Strength 0.01 1,000 37,108 4.4%1,000 37,108 4.1%------------------------------------------------------Total 1.19 837,823 100.0%908,989 100.0% 231 907,000 (BOD)250 982,000 (SS) Notes [1] - Calculated Pounds = Annual Flow [mgd] * Strength Factor * 8.345 [lbs] * 365 [days] [2] - Estimated based on District wastewater flow characteristics Suspended SolidsBiological Oxygen Demand 15 of 27 04/13/2020 DR A F T Otay Water District Sewer Cost of Service Study Exhibit 9 Revenue Allocation Factor Projected % of FY 2021 Total Residential $2,164,233 78.9% Multi-Residential 280,472 10.2% Commercial Low StrengthLow Strength $213,079 7.8% Medium StrengthMedium Strength 31,454 1.1% High StrengthHigh Strength 53,424 1.9%-------------------------Total $2,742,663 100.0% (RR) 16 of 27 04/13/2020 DR A F T Development of Equivalent Meter Allocation Factor Table 1 3/4"1"1 1/2"2"3"4"6"8"10"Total % of Total Factor Residential 4,605 0 0 0 0 0 0 0 0 4,605 97.4% Multi-Residential 0 0 0 39 5 6 0 0 0 50 1.1% Commercial Low Strength 18 5 12 16 1 0 1 0 0 53 1.1% Medium Strength 3 0 4 5 0 0 0 0 0 12 0.3% High Strength 1 0 4 2 0 0 0 0 1 8 0.2%----------------------------------------------------------------------------------------------------Total Meters 4,627 5 20 62 6 6 1 0 1 4,728 District Weighting [2]1.00 2.50 5.00 8.00 15.00 25.00 50.00 80.00 115.00 Residential 4,605 0 0 0 0 0 0 0 0 4,605 81.6%1.00 Multi-Residential 0 0 0 312 75 150 0 0 0 537 9.5%10.74 Commercial Low Strength 18 13 60 128 15 0 50 0 0 284 5.0%5.35 Medium Strength 3 0 20 40 0 0 0 0 0 63 1.1%5.25 High Strength 1 0 20 16 0 0 0 0 115 152 2.7%19.00--------------------------------------------------------------------------------------------------------------4,627 13 100 496 90 150 50 0 115 5,641 Notes [1] - Provided by the City [2] - Based on AWWA 3/4" capacity ratios [3] - Residential set at 3/4" equivalent Number of Meters Equivalent Meters 17 of 27 04/13/2020 DR A F T Otay Water District Sewer Cost of Service Study Exhibit 10 Net Plant In Service Operating Bio-oxygen Suspended Actual Customer Revenue Direct As of Volume Demand Solids Customer Acct/Svcs Related Assignment 07/31/17 (VOL)(BOD)(SS)(AC)(WCA)(RR)(DA) Collection $15,420,555 $13,107,472 $0 $0 $0 $2,313,083 $0 $0 85.0%VOL 15.0%WCA Treatment $434,162 $173,665 $130,248 $130,248 $0 $0 $0 $0 40.0%VOL 30.0%BOD 30.0%SS Lift Station $0 $0 $0 $0 $0 $0 $0 $0 100.0%VOL Plant Before General Plant $15,854,717 $13,281,137 $130,248 $130,248 $0 $2,313,083 $0 $0 % Plant Before General Plant 100.0%83.8%0.8%0.8%0.0%14.6%0.0%0.0% Factor PBGP General Plant $0 $0 $0 $0 $0 $0 $0 $0 As Factor PBGP Total Net Plant In Service $15,854,717 $13,281,137 $130,248 $130,248 $0 $2,313,083 $0 $0 Strength Related Weighted Basis of Classification 18 of 27 04/13/2020 DR A F T Otay Water District Sewer Cost of Service Study Page 1 of 3 Exhibit 11.1 Classification of the Revenue Requirement Operating Bio-oxygen Suspended Actual Customer Revenue Direct Test Year Volume Demand Solids Customer Acct/Svcs Related Assignment FY 2021 (VOL)(BOD)(SS)(AC)(WCA)(RR)(DA) Power Costs $162,015 $162,015 $0 $0 $0 $0 $0 $0 100.0%VOL Administrative Expenses Directors Fees $0 $0 $0 $0 $0 $0 $0 $0 100.0%WCA Travel and Meetings 0 0 0 0 0 0 0 0 100.0%WCA Conservation and Outreach 0 0 0 0 0 0 0 0 100.0%WCA General Office Expense 0 0 0 0 0 0 0 0 100.0%WCA Equipment 23,999 0 0 0 0 23,999 0 0 100.0%WCA Fees 3,914 0 0 0 0 3,914 0 0 100.0%WCA Services 51,809 0 0 0 0 51,809 0 0 100.0%WCA Training 0 0 0 0 0 0 0 0 100.0%WCA Utilities 0 0 0 0 0 0 0 0 100.0%WCA Bad Debt Expense 4,300 0 0 0 0 4,300 0 0 100.0%WCA Interest Expense 0 0 0 0 0 0 0 0 100.0%WCA Other Employee Benefits 0 0 0 0 0 0 0 0 100.0%WCA WO Allocation - Sewer 204,204 171,057 1,678 1,678 0 29,792 0 0 As Net Plant In Service------------------------------------------------------------------------------------------------------------------------Total Administrative Expenses $288,226 $171,057 $1,678 $1,678 $0 $113,814 $0 $0 Materials & Maintenance Fuel & Oil $0 $0 $0 $0 $0 $0 $0 $0 As Net Plant In Service Meters & Materials 0 0 0 0 0 0 0 0 As Net Plant In Service Fleet Parts & Equipment 8,320 6,969 68 68 0 1,214 0 0 As Net Plant In Service Communication Equipment 0 0 0 0 0 0 0 0 As Net Plant In Service Landscaping Materials 0 0 0 0 0 0 0 0 As Net Plant In Service Infrastructure Equipment & Supplies 138,216 115,780 1,135 1,135 0 20,165 0 0 As Net Plant In Service Chemicals 28,496 23,870 234 234 0 4,157 0 0 As Net Plant In Service Safety Equipment 7,280 6,098 60 60 0 1,062 0 0 As Net Plant In Service Laboratory Equipment & Supplies 5,824 4,879 48 48 0 850 0 0 As Net Plant In Service Other Materials & Supplies 104 87 1 1 0 15 0 0 As Net Plant In Service Building & Grounds Materials 0 0 0 0 0 0 0 0 As Net Plant In Service Contracted Services 165,152 138,344 1,357 1,357 0 24,094 0 0 As Net Plant In Service Metro O&M Costs 630,945 309,163 152,058 169,724 0 0 0 0 49.0%VOL 24.1%BOD 26.9%SS Spring Valley Sewer Charge 185,200 185,200 0 0 0 0 0 0 100.0%VOL Chula Vista Capacity Fee 0 0 0 0 0 0 0 0 As Net Plant In Service Metro Capacity Fee 0 0 0 0 0 0 0 0 As Net Plant In Service------------------------------------------------------------------------------------------------------------------------Total Materials & Maintenance $1,169,537 $790,392 $154,961 $172,627 $0 $51,557 $0 $0 Strength Related Weighted for: Basis of Classification 19 of 27 04/13/2020 DR A F T Otay Water District Sewer Cost of Service Study Page 2 of 3 Exhibit 11.1 Classification of the Revenue Requirement Operating Bio-oxygen Suspended Actual Customer Revenue Direct Test Year Volume Demand Solids Customer Acct/Svcs Related Assignment FY 2021 (VOL)(BOD)(SS)(AC)(WCA)(RR)(DA) Strength Related Weighted for: Basis of Classification Labor & Benefits Labor $486,675 $0 $0 $0 $0 $486,675 $0 $0 100.0%WCA WO Allocation - Sewer 353,496 296,116 2,904 2,904 0 51,572 0 0 As Net Plant In Service Vacation/Sick/Holidays 48,513 0 0 0 0 48,513 0 0 100.0%WCA FICA (Soc Sec/Medicare)37,080 0 0 0 0 37,080 0 0 100.0%WCA Pension 84,048 0 0 0 0 84,048 0 0 100.0%WCA Health/Dental/Life Insurance 99,487 0 0 0 0 99,487 0 0 100.0%WCA Worker's Compensation 52,328 0 0 0 0 52,328 0 0 100.0%WCA Salary Continuation Insurance 1,854 0 0 0 0 1,854 0 0 100.0%WCA Employee Awards 0 0 0 0 0 0 0 0 100.0%WCA OPEB 39,000 0 0 0 0 39,000 0 0 100.0%WCA State Unemployment Insurance 0 0 0 0 0 0 0 0 100.0%WCA Employee Assistance Program 0 0 0 0 0 0 0 0 100.0%WCA Employee Programs 0 0 0 0 0 0 0 0 100.0%WCA Uniforms 0 0 0 0 0 0 0 0 100.0%WCA------------------------------------------------------------------------------------------------------------------------Total Labor & Benefits $1,202,481 $296,116 $2,904 $2,904 $0 $900,557 $0 $0 Total Operations & Maintenance $2,822,259 $1,419,579 $159,542 $177,209 $0 $1,065,928 $0 $0 Taxes / Transfer General Fund $0 $0 $0 $0 $0 $0 $0 $0 100.0%WCA Betterment Fund 0 0 0 0 0 0 0 0 100.0%WCA Replacement Fund 0 0 0 0 0 0 0 0 100.0%WCA OPEB Fund 41,200 0 0 0 0 41,200 0 0 100.0%WCA------------------------------------------------------------------------------------------------------------------------Total Taxes / Transfer $41,200 $0 $0 $0 $0 $41,200 $0 $0 Rate Funded Capital $0 $0 $0 $0 $0 $0 $0 $0 As Total O&M Expenses 20 of 27 04/13/2020 DR A F T Otay Water District Sewer Cost of Service Study Page 3 of 3 Exhibit 11.1 Classification of the Revenue Requirement Operating Bio-oxygen Suspended Actual Customer Revenue Direct Test Year Volume Demand Solids Customer Acct/Svcs Related Assignment FY 2021 (VOL)(BOD)(SS)(AC)(WCA)(RR)(DA) Strength Related Weighted for: Basis of Classification Debt Service Existing Debt $0 $0 $0 $0 $0 $0 $0 $0 100.0%WCA New Sewer Loan 0 0 0 0 0 0 0 0 100.0%WCA FY 2020 Issuance 133,400 0 0 0 0 133,400 0 0 100.0%WCA FY 2022 Issuance 0 0 0 0 0 0 0 0 100.0%WCA------------------------------------------------------------------------------------------------------------------------Total Debt Service $133,400 $0 $0 $0 $0 $133,400 $0 $0 Total Less Replacement Reserves $133,400 $0 $0 $0 $0 $133,400 $0 $0 As Total Debt Service Net Debt Service $0 $0 $0 $0 $0 $0 $0 $0 To / (From) Reserves To / (From) Operating Reserves ($172,130)($86,580)($9,731)($10,808)$0 ($65,011)$0 $0 As Total O&M Expenses To / (From) Replacement Reserves (118,000)(59,353)(6,671)(7,409)0 (44,567)0 0 As Total O&M Expenses To / (From) Betterment Reserves 288,000 144,862 16,281 18,083 0 108,774 0 0 As Total O&M Expenses To / (From) Expansion Reserves 55,000 27,665 3,109 3,453 0 20,773 0 0 As Total O&M Expenses------------------------------------------------------------------------------------------------------------------------Total To / (From) Reserves $52,870 $26,593 $2,989 $3,320 $0 $19,968 $0 $0 Total Revenue Requirement $2,916,329 $1,446,173 $162,531 $180,529 $0 $1,127,096 $0 $0 Less: Miscellaneous Revenue Availability Revenues $51,900 $51,900 $0 $0 $0 $0 $0 $0 100.0%VOL Sewer Revenue from Shared Facility (SVSD)29,700 14,939 1,679 1,865 0 11,217 0 0 As Total O&M Expenses Late Fee 22,066 11,099 1,247 1,386 0 8,334 0 0 As Total O&M Expenses Grants - SDCWA Shared Facil Replcmnt 70,000 70,000 0 0 0 0 0 0 100.0%VOL------------------------------------------------------------------------------------------------Total Other Revenues $173,666 $147,938 $2,926 $3,250 $0 $19,551 $0 $0 Net Revenue Requirement $2,742,663 $1,298,235 $159,605 $177,278 $0 $1,107,545 $0 $0 21 of 27 04/13/2020 DR A F T Otay Water District Sewer Cost of Service Study Exhibit 12 Allocation of Total Revenue Requirement FY 2021 Expenses Volume Related $1,298,235 $979,299 $151,554 $140,235 $13,892 $13,256 (VOL) Strength Related Bio-oxygen Demand $159,605 $114,894 $17,781 $16,453 $3,408 $7,069 (BOD) Suspended Solids 177,278 128,319 19,858 18,375 3,489 7,237 (SS)--------------------------------------------------------------------------------Total Strength Related $336,883 $243,213 $37,639 $34,828 $6,897 $14,306 Customer Related Actual Customer $0 $0 $0 $0 $0 $0 (AC) Weighted Customer 1,107,545 904,219 105,443 55,667 12,370 29,846 (WCA)--------------------------------------------------------------------------------Total Customer Related $1,107,545 $904,219 $105,443 $55,667 $12,370 $29,846 Revenue Related $0 $0 $0 $0 $0 $0 (RR) Direct Assignment $0 $0 $0 $0 $0 $0 (DA) Total Revenue Requirements $2,742,663 $2,126,730 $294,636 $230,730 $33,159 $57,408 High Strength Medium StrengthLow Strength Multi- ResidentialResidential Basis of Allocation Commercial 22 of 27 04/13/2020 DR A F T Otay Water District Sewer Cost of Service Study Exhibit 13 Cost of Service Analysis Summary FY 2021 Revenues at Present Rates $2,742,663 $2,657,785 $31,454 $53,424 Allocated Revenue Requirement $2,742,663 $2,652,096 $33,159 $57,408--------------------------------------------------------Bal. / (Def.) of Funds ($0)$5,688 ($1,705)($3,983) Required % Change in Rates 0.0%-0.2%5.4%7.5% Low Strength Medium Strength High Strength 23 of 27 04/13/2020 DR A F T Otay Water District Sewer Cost of Service Study Exhibit 14 Average Unit Costs Summary Variable Cost - $ / CCF $2.77 $2.75 $2.84 $2.70 $3.08 $4.34 Current Rates (1.1.20)$2.93 $2.93 $2.93 $3.64 $5.01 Fixed Costs - $/Cust/Month $16.35 $16.35 $16.35 $16.35 $16.35 $16.35 Current Rates (1.1.20)$16.38 $16.38 $16.38 $16.38 $16.38 Total Average Cost - $/Cust/Month $40.52 $38.49 $45.72 $94.44 $119.80 $31.47 Alloc RevReq/Consumption $4.80 $4.93 $0.00 $3.67 $37.03 $38.81 Rev Req/Consumption 4.80 5.02 0.00 3.39 34.20 35.84 Basic Data Annual Flow - 100 CF 571,973 431,319 65,588 62,892 6,230 5,945 Months 1 - 6 263,274 203,351 32,199 22,216 2,855 2,653 Months 7 - 12 308,699 227,968 33,389 40,676 3,375 3,292 Fixed Rev (Months 1 - 6)$554,321 $452,579 $52,762 $27,855 $6,190 $14,935 Variable Rev (Months 1 - 6)$778,938 $595,819 $94,343 $65,093 $10,392 $13,292 Number of Actual Customers 4,728 4,605 50 53 12 8 Number of Equiv. Customers 5,641 4,605 537 284 63 152 Residential Commercial High Strength Medium StrengthLow Strength Multi- Residential 24 of 27 04/13/2020 DR A F T Otay Water District Sewer Cost of Service Study Residential - Alt 1 Present Rates FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Fixed Charge Monthly System Fee $16.38 $16.13 $17.10 $18.22 $19.15 $20.60 Consumption Charge Billed @ 85% of WW Avg $2.93 $2.89 $3.06 $3.26 $3.42 $3.59 Proposed 25 of 27 04/13/2020 DR A F T Otay Water District Sewer Cost of Service Study Multi-Residential - Alt 1 Present Rates FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Fixed Charge 3/4"$16.38 $16.13 $17.10 $18.22 $19.15 $20.60 1"40.94 40.32 42.74 45.54 47.86 51.49 1 1/2"81.88 80.63 85.48 91.08 95.73 102.97 2"131.00 129.00 136.76 145.72 153.15 164.75 3"245.64 241.89 256.44 273.23 287.18 308.92 4"409.40 403.15 427.40 455.39 478.63 514.87 6"818.79 806.29 854.78 910.77 957.25 1,029.74 8"1,310.08 1,290.08 1,367.67 1,457.24 1,531.63 1,647.60 10"1,883.23 1,854.49 1,966.01 2,094.78 2,201.70 2,368.41 Consumption Charge Billed @ 85% of WW Avg $2.93 $2.89 $3.06 $3.26 $3.42 $3.59 Proposed 26 of 27 04/13/2020 DR A F T Otay Water District Sewer Cost of Service Study Commercial - Alt 1 Present Rates FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Fixed Charge 3/4"$16.38 $16.13 $17.10 $18.22 $19.15 $19.15 1"40.94 40.32 42.74 45.54 47.86 47.86 1 1/2"81.88 80.63 85.48 91.08 95.73 95.73 2"131.00 129.00 136.76 145.72 153.15 153.15 3"245.64 241.89 256.44 273.23 287.18 287.18 4"409.40 403.15 427.40 455.39 478.63 478.63 6"818.79 806.29 854.78 910.77 957.25 957.25 8"1,310.08 1,290.08 1,367.67 1,457.24 1,531.63 1,531.63 10"1,883.23 1,854.49 1,966.01 2,094.78 2,201.70 2,201.70 Consumption Charge (85% of water use) Low Strength $2.93 $2.89 $3.06 $3.26 $3.42 $3.59 Schools 2.93 2.89 3.06 3.26 3.42 3.59 Churches 2.93 2.89 3.06 3.26 3.42 3.59 Medium Strength 3.64 3.29 3.49 3.71 3.90 4.09 High Strength 5.01 4.63 4.91 5.23 5.48 5.76 Proposed 27 of 27 04/13/2020 DR A F T STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 7, 2020 SUBMITTED BY: Michael J. Long Engineering Manager PROJECT: P2083-001103 P2562-001103 DIV. NO. 2 APPROVED BY: Rod Posada, Chief, Engineering Jose Martinez, General Manager SUBJECT: Approval of Change Order No. 8 in an amount not-to-exceed $59,903.35. to the Construction Contract with Pacific Hydrotech Corporation for the 870-2 Pump Station Replacement Project GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) authorize the General Manager to execute Change Order No. 8 to the existing construction contract with Pacific Hydrotech Corporation (Pacific Hydrotech) in the amount of $59,903.35 for the 870-2 Pump Station Replacement Project (Project) (see Exhibits A and B for Project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to execute Change Order No. 8 in the amount of $59,903.35 to the construction contract with Pacific Hydrotech for the 870-2 Pump Station Replacement Project. 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 AGENDA ITEM 7a 2 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 was replaced, which allows 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 online 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, seven (7) change orders have been approved. Change Order No. 1, which totaled $26,269.83, compensated the contractor for changes associated with the 571-1 Reservoir cover and liner improvements. These changes included provisions for additional cover buoyancy floats; replacement of existing unsalvageable batten bar anchor bolts; contractor reservoir disinfection in lieu of contract specified District disinfection; weather related days; and an adjustment to the contract milestone date for the 571-1 Reservoir. In total, Change Order No. 1 added twenty-seven (27) days to the contract. Change Order No. 2, which totaled $48,698.12, compensated the contractor for changes including the following: modifications to the new electric meter room to accommodate San Diego Gas & Electric accessibility requirements; modifications to provide two (2) 250- gallon aqueous ammonia tanks in lieu of one (1) 550-gallon tank to 3 better serve Station operations; provisions for two (2) 30-inch magnetic flow meters in lieu of ultrasonic flow meters to provide more resiliency and flexibility with anticipated flow conditions; and repairs to an existing rectifier electrical conduit adjacent to the access road. Change Order No. 2 also addressed contract time including weather days. In total, Change Order No. 2 added sixteen (16) days to the contract. Change Order No. 3, which totaled $64,864.00, compensated the contractor for several changes including the following: modifications to the dimensions of the backup generator concrete foundation pad; addition of structural support members for the heating, ventilation, and air-conditioning (HVAC) equipment and emergency generator muffler; revisions to the Stations louvers and associated masonry; installation of door louvers for the compressor room doors; increasing the discharge piping on the 570 zone (recirculation) pumps to 18-inches; revisions to provide a sewn protective thermal insulation jacket with clips for the emergency generator muffler and exhaust piping; modifying the emergency generator exhaust roof penetration to simplify future muffler removal/servicing; and consolidation of exterior lighting controls in a new contactor and control panel. Change Order No. 3 also addressed contract time including weather days. In total, Change Order No. 3 added twenty-five (25) days to the contract. Change Order No. 4, which totaled $49,157.89, compensated the contractor for several changes including the following: surge protection for indoor devices; additional pipe supports; spare engine exhaust catalysts; modification to Victaulic couplings; and relocation of chemical analyzers. Change Order No. 4 also reconciled credits associated with the unused portions of the Environmental/Regulatory Compliance and Reservoir Improvement Allowance items. Change Order No. 4 also addressed contract time including weather days. In total, Change Order No. 4 added forty- four (44) days to the contract. Change Order No. 5, which totaled $95,725.00, compensated the contractor for several changes including the following: profile and alignment revisions to the 66-inch and 30-inch discharge yard piping and suction header elevation; modifications to the Type D emergency batteries and test switch locations; addition of a fuel containment structure; providing position switches at the surge tank isolation valve; modifications to the thermal insulation for the pump engine coolant line piping; fire rated door hardware at door D-12; addition of bollards and a metal protective enclosure at the diesel fuel lines entrance location to the Pump Station; revisions to the suction header platform handrail; revisions to the pump engine natural gas 4 pipe sizes; modifications to the cable tray support; ethernet communications to the pump engines; additional costs associated with dewatering existing vault No. 7; elevation and layout modifications to the suction header walkway and engine platform structures; and credits for unused items. Change Order No. 5 also addressed contract time including weather days. In total, Change Order No. 5 added thirty-eight (38) days to the contract. Change Order No. 6, which totaled $40,125.89, compensated the contractor for several changes including the following: credits associated with revisions to chain link fencing; modifications to the overhead crane electrical feed circuit; installation of flashing around pump engine exhaust canopy roof penetration; handrail and steps at the fuel containment structure; incorporation of handwheels on all suction header valves; Type II gate well frames and lids; additional conduit between CP-100 and the telephone backboard; additional electrical grounding of the gas engines; custom grade adjustment for the oil interceptor; relocation of pump engine batteries; and modifications to the planned hydroseed mix. Change Order No. 6 also addressed contract time including weather days. In total, Change Order No. 6 added twenty-seven (27) days to the contract. Change Order No. 7, which totaled $60,567.00, compensated the contractor for several changes including the following: revisions to the ammonia alarm horn/beacon mounting location; provided for cathodic protection jumper wires at the meter vault and cathodic system retesting; installation of concrete curbs at unpaved access road crossings; additional data communication and programming for chlorine analyzers; revisions to programming for pump emergency stop buttons; installation of additional UPS receptacles; replacement of sodium hypochlorite and ammonia pressure switches; revisions to the trip rating of panel LP-2 main circuit breaker; modifications to the site drainage at the Pump Station entrance; provides custom protective enclosures for fuel piping; and provided Type II gate well frame/lid to provide tracer wire access. Change Order No. 7 also addressed contract time including weather days. In total, Change Order No. 7 added twenty-seven (27) days to the contract. Change Order No. 8, which is the subject of this staff report, provides for the following twelve (12) items, as detailed in the attached Exhibit C: 1. An additional valve and piping modifications at the 30-inch piping interconnection. 2. Installation of a storm drain pipe to convey stormwater from the new V-ditch to the underground storm drain system. 5 3. Installation of a 1-inch AVAR and relocation of the 66-inch suction header pressure transmitter assembly. 4. Additional signage in the pipe galley, chemical rooms and fuel containment area. 5. Drainage modifications to the meter vault. 6. Additional V-ditches and concrete curb. 7. Delineation posts and rock protection. 8. Engine canopy lighting and a meter vault flood alarm switch. 9. North access road grading and paving modifications. 10. Credit for unused Electrical and Control Systems Allowance. 11. Credit for unused Specialized Equipment Electrical Connections Allowance. 12. Credit for unused Agency Permit Fees Allowance. In total, the cost associated with the items in Change Order No. 8 is $59,903.35. Time impacts associated with this change are also provided in Exhibit C. The forty-six (46) additional days added to the contract will result in a revised total contract duration of 1,070 calendar days for a revised contract completion date of June 30, 2020. 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 October 9, 2020. The Notice of Completion will be filed after the outstanding items and 7-day testing are completed. 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, including this contract, are $19,518,983. See Attachment B-1 for the budget detail. Based on a review of the financial budget, the Project Manager anticipates that the budget is sufficient to support the Project. The total budget for CIP P2562, as approved in the FY 2021 budget, is $2,900,000. Total expenditures, plus outstanding commitments and forecast, including this contract, are $2,747,536. See Attachment B- 2 for the budget detail. Based on a review of the financial budget, the Project Manager anticipates that the budget is sufficient to support the Project. The Finance Department has determined that, under the current rate model, 100% of the funding is available from the Replacement Fund for CIP P2083 and CIP P2562. 6 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 \\Owd-fp1\engrplan\WORKING\CIP P2083 870-2 Pump Station Replacement\Staff Reports\BD 10-7-2020 Pacific Hydrotech Change Order No 8\Staff Report CO No 8 Revised.docx Attachments: Attachment A – Committee Action Attachment B1 – P2083 Budget Detail Attachment B2 - P2562 Budget Detail Exhibit A – 870-2 Pump Station Project Location Exhibit B - 870-2 Pump Station Project Detail Map Exhibit C – Change Order No. 8 ATTACHMENT A SUBJECT/PROJECT: P2083-001103 P2562-001103 Approval of Change Order No. 8 in an amount not-to-exceed $59,903.35. to the Construction Contract with Pacific Hydrotech Corporation 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 September 21, 2020 and the following comments were made: • Staff recommended that the Board authorize the General Manager to execute Change Order No. 8 to the existing construction contract with Pacific Hydrotech Corporation (Pacific Hydrotech) in the amount of $59,903.35 for the 870-2 Pump Station Replacement Project (Project). • Details of Change Order Nos. 1 through 8 are provided on pages 2 through 5. • As noted in the staff report, time impacts associated with Change Order No. 8 are also provided in Exhibit C. The forty- six (46) additional days added to the contract will result in a revised total contract duration of 1,070 calendar days for a revised contract completion date of June 30, 2020. • In response to several questions from the Committee, staff stated that recommendations for the project were made during the construction phase as unforeseen impacts and improvements were being discovered. There was a discussion of improvements to the project’s access road, which the Committee inquired if the County Sheriff’s Department had been contacted to partner on this or other project costs. Staff noted that while the access road improvements were performed by the District, the County and the Sheriff’s Department participated in significant coordination to grant required easements (at no-cost) for the access road. Upon discovery of nesting Least Bells Vireo adjacent to the construction site, the Sheriff allowed sound blankets to be installed on their fence that avoided the need to construct the District budgeted $150k sound wall. The sound blanket resulted in a cost of less than $20k and saved the District more than $130k in mitigation costs. These coordination efforts on the part of the Sheriff were seen as more than offsetting for the costs associated with pavement widening. Following the discussion, the Committee supported staffs’ recommendation and presentation of this item to the full board on the Consent Calendar. ATTACHMENT B-1 – P2083 Budget Detail SUBJECT/PROJECT: P2083-001103 P2562-001103 Approval of Change Order No. 8 in an amount not-to-exceed $59,903.35. to the Construction Contract with Pacific Hydrotech Corporation for the 870-2 Pump Station Replacement Project 9/15/2020 Budget 19,550,000 Planning Consultant Contracts 84,616 84,616 - 84,616 HELIX ENVIRONMENTAL 17,094 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 & WILDLIFE 720 720 - 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 DIEGO 164 164 - 164 SAN DIEGO DAILY TRANSCRIPT 505 505 - 505 THE SAN DIEGO UNION-TRIBUNE Standard Salaries 233,296 233,296 - 233,296 Fixed Asset 580,444 580,444 - 580,444 Total Planning 1,138,000 1,138,000 - 1,138,000 Design 001102 Consultant Contracts 136 136 136 136 THE WATCHLIGHT CORPORATION 4,850 4,850 - 4,850 BURKETT & WONG ENGINEERS INC 14,068 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 AND 10,484 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 INC Regulatory 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 CORPORATION Standard Salaries 677,054 677,054 - 677,054 Supplier Contracts 5,350 5,350 - 5,350 INLAND AERIAL SURVEYS INC Total Design 1,460,820 1,460,820 136 1,460,820 Construction Construction Contracts 790 790 - 790 CLARKSON LAB & SUPPLY INC 14,031,166 14,019,222 11,943 14,031,166 PACIFIC HYDROTECH CORPORATION 59,903 - 59,903 59,903 Pacific Hydrotech CO No. 8 738,482 736,272 2,210 738,482 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 AND 10,240 10,240 - 10,240 NV5 INC 17,623 17,623 - 17,623 RBF CONSULTING 944,418 944,418 - 944,418 MICHAEL BAKER INT'L INC 52,853 - 52,853 52,853 ALYSON CONSULTING 438 438 - 438 NINYO & MOORE GEOTECHNICAL INFRASTRUCTURE EQUIPMENT & MATERIALS 1,281 1,281 - 1,281 MALLORY SAFETY & SUPPLY LLC OTHER AGENCY FEES 339,493 339,493 - 339,493 SAN DIEGO GAS & ELECTRIC Parking 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 11,681 11,681 - 11,681 COUNTY OF SAN DIEGO Service Contracts 3,628 3,628 - 3,628 MAYER REPROGRAPHICS INC 119 119 - 119 SAN DIEGO DAILY TRANSCRIPT Standard Salaries 225,870 225,870 - 225,870 42,084 - 42,084 42,084 Security System 500 500 500 Mayer Reprographics Total Construction 16,920,164 16,738,368 181,795 16,920,163 Grand Total 19,518,983 19,337,187 181,931 19,518,983 Vendor/Comments Otay Water District p2083-PS - 870-2 Pump Station Repl Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost ATTACHMENT B-2 – P2562 Budget Detail SUBJECT/PROJECT: P2083-001103 P2562-001103 Approval of Change Order No. 8 in an amount not-to-exceed $59,903.35. to the Construction Contract with Pacific Hydrotech Corporation for the 870-2 Pump Station Replacement Project 9/15/2020 Budget 2,900,000 Planning Regulatory Agency Fees 50 50 - 50 PETTY CASH CUSTODIAN Total Planning 50 50 - 50 Design 001102 Standard Salaries 51,320 51,320 - 51,320 Total Design 51,320 51,320 - 51,320 Construction Construction Contracts 206 206 - 206 CLARKSON LAB & SUPPLY INC 2,414,577 2,384,358 30,218 2,414,577 PACIFIC HYDROTECH CORPORATION 127,083 125,493 1,590 127,083 PACIFIC WESTERN BANK Consultant Contracts 129,300 129,300 - 129,300 MICHAEL BAKER INT'L INC Standard Salaries 25,000 16,125 8,875 25,000 Total Construction 2,696,166 2,655,482 40,684 2,696,166 Grand Total 2,747,536 2,706,852 40,684 2,747,536 Vendor/Comments Otay Water District p2562-Res - 571-1 Reservoir Cover/Liner Replac Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost OTAY WATER DISTRICT870-2 PUMP STATIONLOCATION MAP EXHIBIT A CIP P2083F P:\WORKING\CIP P2083 870-2 Pump Station Replacement\Graphics\Exhibits-Figures\Exhibit A, Location Map, May 2016.mxd 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:\WORKING\CIP P2083 870-2 Pump Station Replacement\Graphics\Exhibits-Figures\Exhibit B, Project Detail Map, May 2016.mxd 0 10050 Feet Legend ExistingEasementOWD ExistingParcelOWD ExistingEasementSDGE ProposedStructure ProposedWater ProposedStormDrain ProposedSewer ProposedGas ProposedSiteCivil ExistingWaterOWD OTAY WATER DISTRICT 2554 SWEETWATER SPRINGS BLVD., SPRING VALLEY, CA 91978, (619) 670-2222 CONTRACT/P.O. CHANGE ORDER No. 8 PROJECT/ITEM: 870-2 Pump Station Replacement CONTRACTORNENDOR: Pacific Hydrotech Corporation REF.CIP No.: P2083/P2562 APPROVED BY: Board REF. P.O. No: 720067 DATE: 9/8/20 DESCRIPTION: See attached page 2 of 4 for continuation. REASON: See attached page 3 of 4 for continuation. CHANGE P.O. TO READ: Revise Contract to add $59,903.35 and add 46 days time for a total Contract amount of $17,371,211.08 with a Contract Duration of 1070 Calendar Days. ORIGINAL CONTRACT/P.O. AMOUNT: ADJUSTED AMOUNT FROM PREVIOUS CHANGE: TOTAL COST OF THIS CHANGE ORDER: NEW CONTRACT/P.O. AMOUNT IS: ORIGINAL CONTRACT COMPLETION DATE: CONTRACT/P.O. TIME AFFECTED BY THIS CHANGE: REVISED CONTRACT COMPLETION DATE: $ 16,925,900.00 $ 385,407.73 $ 59,903.35 $ 17,371,211.08 10/4/19 Yes 6/30/20 IT IS UNDERSTOOD WITH THE FOLLOWING APPROVALS, THAT THE CONTRACTORNENDOR IS AUTHORIZED AND DIRECTED TO MAKE THE HEREIN DESCRIBED CHANGES. IT IS ALSO AGREED THAT THE TOTAL COST FOR THIS CHANGE ORDER CONSTITUTES FULL AND COMPLETE COMPENSATION FOR OBLIGATIONS REQUIRED BY THE CONTRACT/P.O. ALL OTHER PROVISIONS AND REQUIREMENTS OF THE CONTRACT/P,O. REMAIN IN FULL FORCE AND EFFECT. CONTRACTORNENDOR: SIGNATURE:� i:-.:::> e 'a �tYc2 STAFF APPROVALS: PROJ MGR: \['\ k • '4 DATE: NAME: =O=av=id'--'-P-=-o-"-we=r---------�--DIV MGR: 'r/;4(z&tHIEF: ___________ DATE: ___ _ TITLE: .;_Pr=oj=ec=t =M=an=aa...:e::....r ____ DATE: COMPANY & Pacific Hydrotech Corpor atlon ADDRESS. 314 E. 3rd Street ' I --------------- Perris. CA 92570 _______ ___. ___ DATE: ___ _ DISTRICT APPROVAL: GEN. MANAGER: _________ DATE: ___ _ COPIES: □ FILE (Orig.), □ CONTRACTORNENDOR, □ CHIEF-ENGINEERING, □ CHIEF-FINANCE, □ ENGR. MGR. □ACCTS PAYABLE, □ INSPECTION, □ PROJ MGR.,□ENGR. SECRETARY, □ PURCHASING, □ PROJECT BINDER EXHIBIT C Contract / P.O. Change Order No. 8 page 2 of 4 Description of Work Description Increase Decrease Time Item No. 1: Charges attributable to the 870-2 PS (CIP 2083). This Change Order provides for an additional valve and piping modifications at the 30-inch piping Interconnection per COR 24. $9,515.00 1 Item No. 2: Charges attributable to the 870-2 PS (CIP 2083). This Change Order provides for installation of a storm drain pipe to convey stormwater from the new V-ditch to the underground storm drain system per COR 118. $9,535.00 6 Item No. 3: Charges attributable to the 870-2 PS (CIP 2083). This Change Order provides for installation of a 1-inch AVAR and relocation of the 66-inch suction header pressure transmitter assembly per COR 133. $4,263.00 1 Item No. 4: Charges attributable to the 870-2 PS (CIP 2083). This Change Order provides for additional signage in the pipe galley, chemical rooms and fuel containment area per COR 139. $2,602.00 0 Item No. 5: Charges attributable to the 870-2 PS (CIP 2083). This Change Order provides drainage modifications to the meter vault per COR 141. $4,162.00 0 Item No. 6: Charges attributable to the 870-2 PS (CIP 2083). This Change Order provides additional V-ditches and concrete curb per COR 143. $23,964.00 7 Item No. 7: Charges attributable to the 870-2 PS (CIP 2083). This Change Order provides delineation posts and rock protection per COR 144. $1,039.00 0 Item No. 8: Charges attributable to the 870-2 PS (CIP 2083). This Change Order provides engine canopy lighting and a meter vault flood alarm switch per COR 147. $13,968.00 10 Item No. 9: Charges attributable to the 870-2 PS (CIP 2083). This Change Order provides North access road grading and paving modifications per COR 149. $19,874.00 21 Item No. 10: Charges attributable to the 870-2 PS (CIP 2083). This Change Order decreases the amount allocated for Bid Item 16, Electrical and Control Systems Additional Allowance by $893.00 to a new authorized amount of $9,107.00. $893.00 Item No. 11: Charges attributable to the 870-2 PS (CIP 2083). This Change Order decreases the amount allocated for Bid Item 21, Specialized Equipment Electrical Connections Allowance by $2,757.00 to a new authorized amount of $2,243.00. $2,757.00 Item No. 12: Charges attributable to the 870-2 PS (CIP 2083). This Change Order decreases the amount allocated for Bid Item 22, Agency Permit Fees Allowance by $25,368.65 to a new authorized amount of $24,631.35. $25,368.65 Sub Total Amount $88,922.00 $29,018.65 46 Total Net Change Order Amount $59,903.35 Contract / P.O. Change Order No. 8 page 3 of 4 Revisions to: BID SCHEDULE Item # Description Quantity Unit Unit Price Amount 16 Electrical and Control Systems Additional Allowance 1 LS LS $9,107.00 21 Specialized Equipment Electrical Connections Allowance 1 LS LS $2,243.00 22 Agency Permit Fees 1 LS LS $24,631.35 Reason: Item No. 1: During shutdown planning, Operations requested an additional valve on the 30-inch interconnect piping to provide additional flexibility for isolation and future operations. This change order is required to implement the modifications resolving all costs associated with COR 24. Item No. 2: In lieu of stormwater sheet flowing to a catch basin it was decided to enhance drainage by channeling stormwater to a headwall and storm drainpipe and convey directly to the below grade storm drain system. This change order is required to implement the required modifications resolving all costs associated with COR 118. Item No. 3: The Contract provided an outlet on the 66-inch suction header for installation of a pressure gauge and transmitter. As part of galley walkway modifications this outlet was no longer accessible, and installation of a new outlet was required. Additionally, it was determined that incorporation of a AVAR at this location would improve the reliability of the pressure transmitter and provide additional safety for the suction header should the pipe experience a vacuum condition. This change order is required to implement the required modifications resolving all costs associated with COR 133. Item No. 4: During start-up, Operations requested additional signage be incorporated in the chemical rooms and fuel storage area to improve hazard communication. Additionally, caution signs were added to a cable tray to mitigate strike potential and improve safety. This change order is required to implement the modification resolving all costs with COR 139. Item No. 5: The Contract provided a gravity drain and gravel sump for the meter vault however during significant rain events groundwater conditions fluctuated resulting in accumulation of groundwater in the meter vault. As this vault houses a sample pump and flow meters it was determined to improve vault drainage and provide a pumped sump discharge and flood switch to ensure long term functionality of the vault equipment. This change order is required to implement the modification resolving all costs with COR 141. Item No. 6: Rain events generated point flow discharges from the adjacent Sheriff’s facility. The Contract addressed these flows with energy dissipaters prior to sheet flowing the discharge to surface catch basins. It was determined to improve this condition and intercept the two largest point flows with V-ditches and the third point flow with additional curb & gutter and convey directly to the underground storm drain system. This change order is required to implement the modification and resolve all costs associated with COR 143. Item No. 7: Subsequent to paving it was determined to incorporate reflective delineation posts adjacent to the SDG&E access road and install cobbles on the adjacent slope increasing the safety of vehicles traversing the SDG&E road that crosses the pump station access road and provide visible indication that the adjacent slope is not part of the access road. This change order is required to implement the modification and resolve all costs associated with COR 144. Item No. 8: The Contract provided security and pathway lighting but not work lighting at the exterior engine platform. During site reviews Operations staff requested that task lighting and additional electrical convenience outlets be incorporated to facilitate night or evening work on the engines. This change order is required to implement the modification and resolve all costs associated with COR 147. Item No. 9: Subsequent to access coordination with the adjacent Sheriff’s facility it was determined to increase the width of the shared North access road as trailered vehicles required access that were not originally anticipated. The additional width required grading modifications and slope adjustments to ensure proper drainage improving the access and serviceability of the North access road. This change order is required to implement the modification and resolve all costs associated with COR 149. Contract / P.O. Change Order No. 8 page 4 of 4 Item No. 10: The Contract Bid Item No. 16, Electrical and Control Systems Additional Allowance, has been used to the maximum extent practical and is no longer required. Item No. 11: The Contract Bid Item No. 21, Specialized Equipment Electrical Connections Allowance, has been used to the maximum extent practical and is no longer required. Item No. 12: The Contract Bid Item No. 22, Agency Permit Fees Allowance, has been used to the maximum extent practical and is no longer required. 870-2 Pump Station (P2083 & P2562) APPROVED c.o.AMOUNT 1 $ 26,269.83 2 $ 48,698.12 3 $ 64,864.00 4 $ 49,157.89 5 $ 95,725.00 6 $ 40,125.89 7 $ 60,567 00 8 $ 59,903.35 9 10 Total C.O.'s To Date: Original Contract Amount: Current Contract Amount: BY DATE Chief 5/18/2018 Chief 1/29/2019 Board 4/3/2019 Board 11/7/2019 Board 2/6/2020 Board 4/1/2020 Board 6/9/2020 Board Change Order Breakdown for the Month: Month Net C.0.$ Umtt Aulhoriz.ation 9120 $0.00 $5,00015% PM/Supervisor $10,000110% Manager $ 15.000120% Chief $50.000130% GM CHANGE ORDER LOG P2083 & P2562-001103 DESCRIPTION TYPE C.O. Additional buoyancy floats in reservoir, replace existing to be reused anchor bolts, Lump Sum disinfect reservoir for water quality testing and weather days Electric service room modifications: ammonia storage modifications: replace ultrasonic flow meters with magnetic type: Relocate existing rectifier power conduit and weather Lump Sum davs Provide bathroom finishes; Increase size of generator foundation; provide additional HVAC supports. add pilasters for louver relocation; add compressor room louvers; increase 570-zone discharge piping: emergency generator jaci<et insulation benenment; Lump Sum exhaust roof penetration detail modification: lighting controls modification and weather davs Cathodic system modifications: HVAC modifications: additional 4-inch irrigation valve: indoor devices surge protection: surge tank concrete foundation mod,fications: Type G LED exit light fl.Xture mount modrfications: chemical resistant coattng in chemical rooms: lighting controller modifications: additional pipe supports in the pump room: adc EF-4 to pump room: spare exhaust catalyst and add make-up oil storage tanks: increase size of Vlctaulic couplings: add Type A light fixture to electrical service entrance room; incorporate two new prima roof drains and O\lertlow drains; relocate Lump Sum HVAC ductwork in electric room: reorientation of electlical busway in emergency generator room: relocation of chemical analyzers: add 2-inch pressure reducing valves: add disassembly flanges on pump engine coolant piping; add cove base in restroom: add flexible connection for engine coolant and gas piping to pump engines: add suppor gussets on aluminum platfonm above the suction piping: add 1-hour fire labeling at the generator room interior door, weather and bid item quantity adjustments Suction piping revisions: type D emergency battelies and test switch locations: fuel containment structure: position switches at surge lank isolation valve: thermal insulation for pump engine coolant line piping: door D-12 fire rated door hardware: protective endosure for diesel fuel lines; suction header platform handrail modifications Lump Sum natural gas engine piping modifications: cable tray support modification: ethemet communication to pump engines: vault 7 dewatering: AVAR piping connection material changes: suction header platfonm modifications: wealher and bid item quantity adlustments Fencing revisions: overhead crane electrical feed changes: pump engine exhaust penetration: handrail and steps at fuel containment: suction header valve handwheels: gate well frames/Tids; conduit between CP-100 and backboard; gas engine electlical Lump Sum grounding: oil interceptor grade adjustment; relocate pump engine battertes: change hvdroseed mix and densitv Ammonia Alarm Mounting; Meter Vault Cathodic Revisions: Concrete Curt>s: Chloline Analyzer Data/Comm Mods; Pump Estop Revisions; CP-100 UPS Outlets: Chemical Lump Sum Pressure Switch Revisions: LP-2 Panel Top Rating Revision; Entrance Drainage Mod: Fuel Pipe Protective Enclosure: Gate Well Frame/Lid for Cathodic Additional Interconnect Valve; Add 'I Storm Drain Pipe: Relocate Pressure xmiter and AVAR: Add ·1 sign age & Display Cover: Meter Vault Drainage Mods: Add 'I V-D,tches and curt>lgutter. Delineation Posts and Rock Protection: Engine Canopy Lighting. Lump Sum Convenience Outlets. Meter Vault Flood Alanm: North Access Road Grading and Pavina Mods Btd Item Reconciliation $445,311.08 2.6% $16,925,900.00 $17,371,211.08 Absolute C.0.$ Absolute C.0. % $0.00 0.0% $0.00 0.0% $0.00 0.0% $0.00 0.0% STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 7, 2020 SUBMITTED BY: Doug Rahders, Fleet Maintenance Supervisor PROJECT: P2282 DIV. NO. All APPROVED BY: Pedro Porras, Chief Water Operations Jose Martinez, General Manager SUBJECT: AUTHORIZE THE PURCHASE OF SIX (6) FLEET VEHICLES GENERAL MANAGER’S RECOMMENDATION: Authorize the General Manager to issue purchase orders to: •Ford of Chula Vista in the amount of $102,986.76 for the purchase three (3) 2021 Ford F-150 Pick-up Trucks; •Fairview Ford in the amount of $84,056.04 for the purchase of two (2) 2021 Ford F-250 Pick-up Trucks; and, •Fritts Ford in the amount of $29,590.75 for the purchase of one (1) 2021 Ford Ranger Pick-up Truck. For a total of six (6) fleet vehicles and a total cost of $216,633.55. COMMITTEE ACTION: See Attachment “A.” PURPOSE: To obtain Board authorization to purchase six (6) fleet replacement vehicles from the vendors specified with the lowest responsive quotes. ANALYSIS: There are eight (8) vehicles included in the approved CIP P2282 FY21 budget; one (1) 3/4 ton truck was already purchased and one AGENDA ITEM 7b (1) compact vehicle which will be an off-the-lot purchase that will not require upfitting and will be purchased separately. The requested six (6) vehicles will replace five (5) of the following units and will add one (1) vehicle for the new SCADA Instrumentation Technician: • #157 (2006 Ford E-250 SCADA System Van – 67,000 miles) • #167 (2007 Toyota Tacoma Recycle System Truck – 137,912 miles) • #204 (2010 Ford F-150 Pick-up Truck – 92,700 miles) • #205 (2010 Ford F-150 Pick-up Truck – 94,850 miles) • #219 (2013 Ford F-150 Water System Truck – 105,604 miles) These vehicles have exceeded the District’s vehicle replacement program of seven (7) years and/or 100,000 miles for non-commercial vehicles. • Unit #157 is utilized by SCADA Instrumentation staff to perform field maintenance on all field instrumentation and PLCs. • Unit #167 is utilized by Fleet Maintenance staff to perform field maintenance on generators and engines located throughout the District’s service area, primarily at pump stations. • Unit #204 is utilized by Construction Inspection staff for field inspection of construction work related to water, recycled water, and wastewater systems. • Unit #205 is utilized by Survey Department’s Utility Locator who oversees utility location requests, maps underground utility installations, and assists GIS staff in mapping of new and revised District facilities. • Unit #219 is assigned to Water Systems Operators tasked with operating the water distribution system and responding to water emergencies. • The second 2021 Ford F-250 pick-up truck with service body is an addition to the fleet and will be operated by the SCADA Instrumentation Technician that was added to the SCADA Instrumentation Department in FY20. Quotes were solicited for six (6) vehicles via BidSync, the District’s purchasing solicitation system. Multiple quotes were received and are shown below. Prices received include all applicable fees, taxes, and delivery. Funding for these purchases is included in CIP P2282, Vehicle Capital Purchases Program. Three (3) 2021 Ford F-150 Pick-up Trucks Dealer Bid Price Ford of Chula Vista – Chula Vista, CA $102,986.76 Fairview Ford – San Bernardino, CA $104,429.55 Fritts Ford – Riverside, CA $117,938.01 Two (2) 2021 Ford F-250 Pick-up Trucks Dealer Bid Price Fairview Ford – San Bernardino, CA $84,056.04 Ford of Chula Vista – Chula Vista, CA $90,712.50 Fritts Ford – Riverside, CA $91,741.40 One (1) 2021 Ford Ranger Pick-up Truck Dealer Bid Price Fritts Ford – Riverside, CA $29,590.75 Ford of Chula Vista – Chula Vista, CA $29,638.77 Fairview Ford – San Bernardino, CA $30,175.52 FISCAL IMPACT: Joe Beachem, Chief Financial Officer The total cost for the six (6) vehicles is $216,633.55 which will be charged against the Vehicle Capital Purchases CIP P2282, which was approved by the Board during the budget process with an amount of $315,000.00. The total cost will not exceed budgeted funding. The Finance Department has determined that 100 percent of the funds are available in the replacement fund. The following expenditure summary shows the eight (8) vehicles which were budgeted in CIP P2282 for FY21, including the six (6) vehicles being requested in this staff report: Total CIP P2282 Vehicle Replacements FY21 Budget: $315,000.00 Six (6) Fleet Trucks - Proposed $216,633.55 One (1)3/4 Ton Truck - Purchased $41,275.88 One (1) Compact Vehicle - Budgeted $25,200.00 Projected CIP P2282 FY21 Under Budget: $31,890.57 STRATEGIC GOAL: Operate the system to meet demand twenty-four (24) hours a day, seven (7) days a week. LEGAL IMPACT: None. Attachment A - Committee Action Attachment B - Photos of Vehicles ATTACHMENT A SUBJECT/PROJECT: AUTHORIZE THE PURCHASE OF SIX (6) FLEET VEHICLES COMMITTEE ACTION: The Finance and Administration Committee (Committee) reviewed this item at a meeting held on September 22, 2020 and the following comments were made: • Staff is requesting that the Board authorize purchase orders to the following dealers for six (6) fleet vehicles and a total cost of $216,633.55: o Ford of Chula Vista in the amount of $102,986.76 for the purchase three (3) 2021 Ford F-150 Pick-up Trucks; o Fairview Ford in the amount of $84,056.04 for the purchase of two (2) 2021 Ford F-250 Pick-up Trucks; and, o Fritts Ford in the amount of $29,590.75 for the purchase of one (1) 2021 Ford Ranger Pick-up Truck. • Information was reviewed from the staff report. • Staff indicated, in response to an inquiry from the Committee, that both Fairview Ford of San Bernardino and Fritts Ford of Riverside would deliver the purchased vehicles to the District. • In response to another inquiry from the Committee, staff indicated that the District utilized BidSync, the District’s purchasing solicitation system, and sent the request for bids to all dealerships within 150 miles of San Diego. The District received only three (3) bids likely because many dealerships do not have fleet shops dedicated to government fleets. Many have commercial fleet shops and do not wish to handle government fleet bids. • The Committee inquired why the District was replacing Vehicle #157 when it only has 67,000 miles. Staff explained that Unit #157 is a utility van that is utilized by the SCADA Instrumentation staff to perform field maintenance. It is being replaced for a couple reasons. Because of its age (2006) and its van configuration where equipment is in the interior of the vehicle making it inefficient and inconducive to workflow. One of the two proposed F-250 pick-up trucks will replace the van and the other will be operated by the SCADA Instrumentation position that was added in fiscal year 2020. The layout of tools and equipment in the two vehicles will be standardized which will aid SCADA personnel in working efficiently out of either vehicle should one go down for servicing. Upon completion of the discussion, the committee supported staff’s recommendation and presentation to the full board on the consent calendar. Ford Ranger Ford F-150 ATTACHMENT B Ford F-250 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 7, 2020 SUBMITTED BY: Bob Kennedy Engineering Manager PROJECT: P1210-018000 DIV. NO. 5 APPROVED BY: Rod Posada, Chief, Engineering Jose Martinez, General Manager SUBJECT: Adopt Resolution No. 4387 Approving the August 24, 2020 Purchase Agreement for $182,000.00 for the Jamacha Boulevard Property in Spring Valley and Authorize the General Manager to Complete the Sale of the Property GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) adopt Resolution No. 4387 approving the August 24, 2020 Purchase Agreement for $182,000.00 for the Jamacha Boulevard property in Spring Valley and to authorize the General Manager to enter into escrow to complete the sale of the property (see Exhibit A for District property location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To request the Board to approve the August 24, 2020 Purchase Agreement for $182,000.00 for the Jamacha Boulevard property in Spring Valley and to authorize the General Manager to enter into escrow to complete the sale of the property. Board adoption of Resolution No. 4387 (Attachment B) will meet the terms of the August 24, 2020 Purchase Agreement to expedite the sale of the property. AGENDA ITEM 8a 2 ANALYSIS: As a regular course of business, the District periodically reviews the need and use of real estate (property) it owns. This is done to ensure that the District’s current and future property needs are provided for, and that property that is no longer required is disposed of, in order to minimize costs and associated liabilities of property ownership. The retention of real property that is surplus to the District’s needs increases the operating expense by increasing the requirement to maintain and manage the property. After an evaluation of District-owned properties, staff identified the Jamacha Boulevard property in Spring Valley as not required for District use and on January 2, 2019 the Board adopted Resolution No. 4355 declaring this surplus property and directed staff to solicit offers for the surplus property. On February 22, 2019, staff solicited offers for the lease or sale of the surplus properties from Preferred Entities of the opportunity to purchase or lease the properties for specified priority uses, as required by Government Code § 54222 et seq. On April 9, 2019, the District received an appraisal of the Jamacha Boulevard property in Spring Valley from Anderson & Brabant, Inc. (see Exhibit B) that valued the property at $100,000. This appraisal was performed to assist the District in determining the market value of the subject property. Staff did not receive any offers for the Jamacha Boulevard property in Spring Valley from any Preferred Entities, and on May 21, 2019, staff advertised for the service of a real estate broker (Broker) with experience in dealing in commercial and residential real estate. On August 14, 2019, the District signed a Sales Listing Agreement with Pacific Coast Commercial (PCC) to provide Broker services for the District (see Exhibit C). PCC prepared a broker’s opinion and recommended a listing price of $150,000.00. PCC prepared the property’s marketing program and listed the property on August 26, 2019 (see Exhibit D). The District received this offer on the property on August 24, 2020, which was approved by the prospective buyer, Dan Miller, for $182,000, subject to the terms of the Purchase Agreement and the approval by the Board (see Exhibit E). 3 FISCAL IMPACT: Joe Beachem, Chief Financial Officer Acceptance of this offer will result in revenue of approximately $182,000.00, less the cost of surveying the property, relocating a fence, escrow, and closing costs. This property was used for potable purposes and the proceeds will be credited back to the potable general fund. The Engineering Outside Services budget covered the cost of appraisal services, boundary adjustment preparation, legal descriptions, filing the certificate of compliance, and the County of San Diego plan review services. Currently, Engineering’s expenses have not exceeded anticipated expenses and it is expected that there will be sufficient funds available to offset the expected costs. 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 responsive 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. BK/RP:jf P:\Public-s\Real Estate Services\4 Surplus Properties - Jan 2019\Staff Reports\Staff Report 10-07-20\BD 10-07-20 Approve PA for Jamacha Blvd - Staff Report.docx Attachments: Attachment A – Committee Action Attachment B – Resolution No. 4387 Exhibit A – Jamacha Blvd. Property Location Map Exhibit B – Jamacha Blvd. Property Appraisal Exhibit C – Sales Listing Agreement Exhibit D – Jamacha Blvd. Property Marketing Program Exhibit E – Jamacha Blvd. Property Purchase Agreement ATTACHMENT A SUBJECT/PROJECT: P1210-018000 Adopt Resolution No. 4387 Approving the August 24, 2020 Purchase Agreement for $182,000.00 for the Jamacha Boulevard Property in Spring Valley and Authorize the General Manager to Complete the Sale of the Property COMMITTEE ACTION: The Finance and Administration Committee (Committee) reviewed this item at a meeting held on September 22, 2020 and the following comments were made: • Staff is requesting 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. • Information was reviewed from the staff report. • The District received an offer for the property on August 24, 2020 for $182,000 submitted by Mr. Dan Miller. This is the fourth offer for the property and the first offer that has been presented to the board for approval. • In response to an inquiry from the Committee, staff indicated the reason this is the first offer that has been presented to the board for this property is the District received concerns from prospective buyers on whether the property was a legal parcel by the County of San Diego’s definition. Buyers felt that there could be long entitlement processes involved with acquiring development permits from the County for the property. The District, after receiving this feedback, took the step to acquire a lot line adjustment and a certificate of compliance with the County, which was recently approved. This process ensures that the property is a legal parcel. • Additionally, there were some interested buyers and the District did received a bid. However, the bidder backed out before the offer could be presented to Committee. Since that time, two additional buyers expressed interest and the highest bidder, Mr. Miller, hopes to close within a couple of days after the board considers his offer. • The Committee discussed that the property is approximately 10,000 square feet which makes the sale per square foot approximately $18, which the Committee thought was reasonable. Staff are not aware of any restrictions for the use of the property. The new owner would need to acquire permits from the County for any use/changes to the property, including the construction of a driveway for access from the property onto Jamacha Blvd. • Staff is proposing that the board adopt a resolution for the sale of the property as it is felt a formal resolution would move the sale through the escrow process more quickly. Upon completion of the discussion, the Committee supported presentation to the full board as an action item. 1 OTAY WATER DISTRICT RESOLUTION NO. 4387 DECLARATION OF THE BOARD OF TRUSTEES APPROVING THE AUGUST 24, 2020 PURCHASE AGREEMENT FOR $182,000 FOR THE SALE OF THE JAMACHA BOULEVARD PROPERTY IN SPRING VALLEY AND AUTHORIZING THE GENERAL MANAGER TO COMPLETE THE SALE OF THE PROPERTY WHEREAS, pursuant to California Water Code Section 31041, the Otay Water District (“District”) is empowered to dispose of District property; and WHEREAS, the District is the owner in fee simple of real property designated as a portion of the Jamacha Boulevard parcels (APN 505-672-20 and a portion of APN 505- 672-19) comprising a total of approximately 0.23 acres of land and located in the County of San Diego, California (“Property”); and WHEREAS, said Property is described in Exhibit “A” attached hereto and incorporated herein by this reference; and WHEREAS, the District Code of Ordinances Section 4.05 provides for the disposal of surplus property; and WHEREAS, the Board of Directors considered a report from staff supported by written findings and, on January 2, 2019, in a regular public meeting, adopted Resolution No. 4355 declaring this Property as surplus property and directed staff to solicit offers for the disposition of the surplus property in accordance with the procedures specified in The Surplus Land Act, Government Code Section 54220 et seq.; and WHEREAS, California Government Code Section 54220 et seq. establishes procedures and requirements for the disposition of surplus land owned by local agencies, including, but not limited to, a local agency’s responsibility to make written offers to sell surplus property to various state, county, and local entities, and a local agency’s right to sell the property at fair market value if staff receives no offers for the surplus property; and WHEREAS, the District made written offers to sell the Property to the appropriate state, county, and local entities, and received no offers for the Property; and WHEREAS, the District made the Property available to the general public through a competitive bidding process; and WHEREAS, the Board of Directors has considered a report from staff on the August 24, 2020 Purchase Agreement for the sale of the Property for the sum of $182,000. ATTACHMENT B 2 NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Otay Water District that the District’s real property designated as a portion of the Jamacha Boulevard parcels (APN 505-672-20 and a portion of APN 505-672-19) comprising a total of approximately 0.23 acres of land and located in the County of San Diego, California, and described in Exhibit “A”, is surplus property because it is not, and will not, be needed by the District and is surplus to the District's needs; and BE IT FURTHER RESOLVED that the Board of Directors of the Otay Water District approves the August 24, 2020 Purchase Agreement for $182,000 and authorizes the General Manager to enter into escrow and complete the sale of the Property; and BE IT FURTHER RESOLVED that if the escrow for the sale of this Property is not completed, the General Manager is hereby authorized to make the Property available to the general public through a competitive bidding process and is directed to bring any future offers and bids on said Property to the Board of Directors for approval and award of bid. PASSED AND ADOPTED by the Board of Directors of the Otay Water District, County of San Diego, State of California, on the 7th day of October 2020, by the following vote of the members thereof: AYES: NOES: ABSTAIN: ABSENT: ________________________________ President Attest: _______________________ District Secretary OTAY WATER DISTRICTOWD PARCEL 505-672-38-00 LOCATION MAP May 2020F P:\Public-s\Real Estate Services\4 Surplus Properties - Jan 2019\Exhibits\Jamacha Blvd Property.mxd "` 33 ¹r l? l? l? l? l? l? l? l?îîSRP Legend SURPLUS PROPERTY: 0.23 ACRES (approx) PARCEL LINES 0 10050 Feet 850-657 PRS 100' (approx) 100' (approx) ROW 5056723900 5056723800 5056720900 5056720300 5056721000 EXHIBIT A !\ VICINITY MAP PROJECT SITE NTSDIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ?ò Aä%&s ?p ?Ë JAMACHA BLVD F APPRAISAL REPORT OTAY WATER DISTRICT SURPLUS PROPERTY ±10,000 SQUARE FOOT PARCEL JAMACHA BOULEVARD SPRING VALLEY, CALIFORNIA APPRAISED FOR Mr. Bernardo Separa Senior Engineering Technician OTAY WATER DISTRICT 2554 Sweetwater Springs Boulevard Spring Valley, CA 91978 DATE OF VALUATION April 9, 2019 DATE OF REPORT April 24, 2019 APPRAISED BY Anderson & Brabant, Inc. 353 West Ninth Avenue Escondido, California 92025 File No. 19-028 EXHIBIT B ANDERSON & BRABANT, INC. REAL ESTATE APPRAISERS AND CONSULTANTS 353 W. NINTH AVENUE ESCONDIDO, CALIFORNIA 92025-5032 TELEPHONE (760) 741-4146 FAX (760) 741-1049 April 24, 2019 Mr. Bernardo Separa Senior Engineering Technician OTAY WATER DISTRICT 2554 Sweetwater Springs Boulevard Spring Valley, CA 91978 RE: Valuation of ±10,000 square foot site Surplus property owned by Otay Water District Southeast side of Jamacha Boulevard Spring Valley, California 91978 Dear Mr. Separa: As requested, we have estimated the market value of the above-referenced parcel of vacant land located in Spring Valley, California on the southeast side of Jamacha Boulevard. This is a surplus property held in title by Otay Water District. The date of value is April 9, 2019. This is recognized as an Appraisal Report under the Uniform Standards of Professional Appraisal Practice (USPAP). As such, the report is intended to comply with the requirements set forth under Standards Rule 2-2(a) of USPAP. It has also been prepared in conformance with the Code of Ethics and Standards of Valuation Practice of the Appraisal Institute. Based on a thorough investigation and analysis of appropriate data as they relate to the subject, we have arrived at the following opinion of value for the property, set forth as of the above- referenced date. ONE HUNDRED THOUSAND DOLLARS ($100,000) The preceding conclusion is subject to certain assumptions and limiting conditions as set forth in the attached report. Thank you for this opportunity to be of service. Respectfully submitted, ANDERSON & BRABANT, INC. David C. Ottley, MAI William B. Anderson, MAI, SRA BREA Certification No. AG002149 BREA Certification No. AG002315 ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. TABLE OF CONTENTS EXECUTIVE SUMMARY ......................................................................................................... 1 ASSUMPTIONS AND LIMITING CONDITIONS ................................................................. 2 APPRAISERS’ SIGNED CERTIFICATIONS ........................................................................ 4 INTRODUCTION Identification of the Property ................................................................................................... 6 Purpose of the Assignment ...................................................................................................... 6 Exposure Time ......................................................................................................................... 6 Effective Date of Value Opinion ............................................................................................. 7 Date of Report ......................................................................................................................... 7 Client ....................................................................................................................................... 7 Intended Use and User ............................................................................................................. 7 Property Rights Appraised ...................................................................................................... 7 Extraordinary Assumptions ..................................................................................................... 7 Hypothetical Conditions .......................................................................................................... 7 Scope of Work ......................................................................................................................... 8 Report Option .......................................................................................................................... 8 Sales History of the Subject Property ...................................................................................... 9 Past Appraisal Services ........................................................................................................... 9 Location Map ........................................................................................................................... 10 Location Description ............................................................................................................... 11 DESCRIPTION OF REAL ESTATE APPRAISED Aerial Photograph of the Subject Property .............................................................................. 13 Subject Property Photographs ................................................................................................. 14 Plat Map ................................................................................................................................... 17 Land Description ..................................................................................................................... 18 Improvement Description ........................................................................................................ 20 Assessment Data ...................................................................................................................... 20 VALUATION Highest and Best Use ............................................................................................................... 21 Valuation Methodology ........................................................................................................... 22 Sales Comparison Approach ................................................................................................... 22 ADDENDA Aerial and Ground Level Photographs – Market Data Preliminary Title Reports Qualifications of the Appraisers ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 1 EXECUTIVE SUMMARY Property Location: Southeast side of Jamacha Boulevard Spring Valley, California 91978 Fee Owner of Record: Otay Water District Assessor Parcel Nos.: 505-672-20-00 and a portion of 505-672-19-00 Thomas Bros. Map Code: 1291-F1 Property Type: Vacant land Interest Appraised: Fee Parcel Size: 10,000 square feet Zone: M58 and C30, County of San Diego General Plan: Public/Semi-Public Facilities, County of San Diego Flood Zone: Outside of a FEMA flood hazard zone according to County of San Diego online mapping services. Please note, however, that the southeast side of the site is designated wetlands based on the County of San Diego Initial Study Research Packet. Earthquake Fault Zone: No Toxic Hazards: None noted Improvements: None Highest and Best Use: Development with small industrial or commercial use Date of Valuation: April 9, 2019 Date of Report: April 24, 2019 Estimated Market Value: $100,000 Exposure Time: Up to 12 months Special Assumptions and Hypothetical Conditions: (see page 2) ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 2 ASSUMPTIONS AND LIMITING CONDITIONS This appraisal is subject to the following special assumptions and limiting conditions: 1. This Appraisal Report is intended to comply with the reporting standards set forth by the Uniform Standards of Professional Appraisal Practice (USPAP). It presents brief discussions of the data, reasoning and analyses that were used in the appraisal process to develop the appraisers’ opinion of value. In some instances, supporting documentation concerning data, reasoning, and analyses has been retained in the appraisers’ file. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. The appraisers are not responsible for the unauthorized use of this report. 2. It is assumed that the existence of significant cultural resources, if any, discovered within the subject parcel will not create any abnormal hardship nor measurably impact market value in conjunction with our determination of highest and best use. 3. The subject is an approximate 10,000 square foot portion of a greater site that is held in title by Otay Water District. Our estimate of value for the property is based on the assumption and hypothetical condition that the approximate 10,000 square foot subject site is a separate and independently marketable parcel as of the date of value stated herein. 4. The subject property encompasses a portion of Assessor Parcel Number 505-672-19-00, and all of Assessor Parcel Number 505-672-20-00. We were provided with preliminary title reports relating to all of Parcels 505-672-19-00 and 20-00. The two reports were prepared by First American Title Company, are dated January 25, 2019, and can be identified by reference to Order Nos. DIV-5854433 and DIV-5854434. Copies of the title documents are included in the Addenda section of this report. Two easements for public utilities are set forth in the title reports, but the locations of these encumbrances could not be determined by the title company. For purposes of this appraisal, the assumption is made that the existence of these two existing easements does not negatively impact the use or value of the subject in accordance with its estimated highest and best use. 5. The subject has 100 feet of direct frontage on Jamacha Boulevard, a well-travelled County roadway. According to Mr. Richard Chin, Public Works Project Manager for the County of San Diego, the specific subject site is not required to be served from an interior roadway. Nevertheless, if possible, the County’s preference is to have a combined driveway for the subject and the portion of the land to be retained by Otay Water District. As of the date of this appraisal, the subject is a portion of a greater landholding held in title by the water district that is accessed from a point along Jamacha Boulevard at the far westerly point of the property. A representative of the water district has indicated that they will not furnish access over the segment of the site to be retained by the district. Our final estimate of value for the subject is based on the assumption and hypothetical condition that the property is legally accessible from any point along its direct frontage on Jamacha Boulevard. 6. No Phase I Environmental Site Assessment was furnished that would verify the existence or absence of toxic materials. In this appraisal, it is assumed that there are no hidden or unapparent hazardous or other toxic subsoil conditions that would render the sites more or less valuable. No responsibility is assumed for such conditions or for engineering that might ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 3 be required to discover such factors and we have assumed that the sites could be developed to their highest and best use. This appraisal is subject to the following general assumptions and limiting conditions: 1. It is assumed that information furnished to us by our client, including maps, and legal descriptions, is substantially correct. 2. No responsibility is assumed for matters legal in character, nor do we render an opinion as to title, which is assumed to be held in fee simple interest as of the date of valuation unless otherwise specified. 3. It is assumed that the property is readily marketable, free of all liens and encumbrances except any specifically discussed herein, and under responsible ownership and management. 4. Photographs, maps and other exhibits furnished in this appraisal are to assist the reader in visualizing the property. No surveys of the property have been made and no responsibility has been assumed in this matter. 5. Disclosure of the contents of this appraisal report is governed by the by-laws and regulations of the Appraisal Institute. Neither all nor any part of the contents of this report (especially reference to the Appraisal Institute or the MAI designation) shall be disseminated to the public through advertising media, public relations media, news media, sales media, or any other public means of communication without prior written consent and approval of Anderson and Brabant, Inc. 6. The submission of this report constitutes completion of the services authorized. It is submitted on the condition that the client will provide the appraiser customary compensation relating to any subsequent required depositions, conferences, additional preparation or testimony. 7. The valuation estimate is of surface rights only and the mineral rights, if any, have been disregarded. 8. No warranty is made as to the seismic stability of the subject property. 9. It is assumed that all required licenses, or other legislative or administrative permits from any local, state, or national governmental or private entity or organization can be obtained for any use on which the value estimate contained in this report is based. ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 4 APPRAISER’S SIGNED CERTIFICATION I do hereby certify that, to the best of my knowledge and belief … 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions and conclusions. 3. I have no present or prospective future interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the property or parties involved with this assignment. 4. I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three (3) year period immediately preceding acceptance of this assignment. 5. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. My compensation for completing this assignment is not contingent upon the developing or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 7. The appraisal was developed and the appraisal report was prepared in conformity with the Appraisal Standards Board’s Uniform Standards of Professional Appraisal Practice (USPAP), and the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute. 8. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 9. I made a personal inspection of the property which is the subject of this report. A representative of the property ownership accompanied the appraiser on the onsite inspection. 10. No one provided significant real property appraisal assistance to the persons signing this appraisal report. 11. As of April 24, 2019, the date of this report, I have completed the continuing education program for Designated Members of the Appraisal Institute. David C. Ottley, MAI Certified General Real Estate Appraiser BREA Appraiser No. AG002149 Expires November 14, 2018 ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 5 APPRAISER’S SIGNED CERTIFICATION I do hereby certify that, to the best of my knowledge and belief … 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions and conclusions. 3. I have no present or prospective future interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the property or parties involved with this assignment. 4. I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three (3) year period immediately preceding acceptance of this assignment. 5. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. My compensation for completing this assignment is not contingent upon the developing or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 7. The appraisal was developed and the appraisal report was prepared in conformity with the Appraisal Standards Board’s Uniform Standards of Professional Appraisal Practice (USPAP), and the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute. 8. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 9. I did not make a personal inspection of the property which is the subject of this report during the course of the current valuation analysis. 10. No one provided significant real property appraisal assistance to the persons signing this appraisal report. 11. As of April 24, 2019, the date of this report, I have completed the continuing education program for Designated Members of the Appraisal Institute. William B. Anderson, MAI, SRA Certified General Real Estate Appraiser BREA Appraiser No. AG002315 Expires May 31, 2020 ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 6 INTRODUCTION IDENTIFICATION OF THE PROPERTY The subject consists of a square shaped, ±10,000 square foot parcel of vacant land located in the unincorporated San Diego County community of Spring Valley, California on the southeast side of Jamacha Boulevard. Legal Description The subject is legally described, in brief, as A portion of Lot 41 of Sweetwater Springs according to Map thereof No. 576 on file in the Office of the Recorder of San Diego County. A complete legal description of the property and adjoining land under common ownership is found within two preliminary title reports, copies of which are included in this appraisal as attachments. The land can be further identified as Assessor Parcel Number 505-672-20-00 and a portion of Assessor Parcel Number 505-672-19-00. Ownership Title to the subject property is currently held as follows: OTAY WATER DISTRICT. PURPOSE OF THE ASSIGNMENT The purpose of this appraisal assignment is to estimate the market value of the subject property. Market value is a type of value, stated as an opinion, that presumes the transfer of a property (i.e., a right of ownership of a bundle of such rights), as of a certain date, under specific conditions set forth in the following definition: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently, knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. Buyer and seller are typically motivated; 2. Both parties are well-informed or well-advised, and each acting in what he or she considers his or her own best interest; 3. A reasonable time is allowed for exposure in the open market; 4. Payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and 5. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. 1 EXPOSURE TIME The value estimate reflects a reasonable exposure time for the subject land estimated at up to 12 months as of the valuation date. According to the Uniform Standards of Professional 1 The Appraisal of Real Estate, 14th ed. (Chicago: Appraisal Institute, 2013), p. 59 ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 7 Appraisal Practice, Exposure Time is the estimated length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective opinion based on an analysis of past events assuming a competitive and open market. EFFECTIVE DATE OF VALUE OPINION The effective date of the opinion of value expressed herein is April 9, 2019. DATE OF REPORT The date of this appraisal report is April 24, 2019. CLIENT The client is the Otay Water District. INTENDED USE AND USER The intended use of this report is to assist the client, the Otay Water District, in determining the market value of the subject property for potential disposition purposes. Any other party who may receive this report is not an intended user, and we are not responsible for unauthorized use of this report. PROPERTY RIGHTS APPRAISED The reported estimate of market value reflects the fee property interest as set forth in provided preliminary title reports, subject to all easements of record. EXTRAORDINARY ASSUMPTIONS An extraordinary assumption is defined as an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraisers’ opinions or conclusions. No extraordinary assumptions were considered in this analysis; nevertheless, this appraisal is subject to certain special and general assumptions as outlined on pages 2 and 3 of this report. HYPOTHETICAL CONDITIONS A hypothetical condition is defined as a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. The subject is an approximate 10,000 square foot portion of a greater site that is held in title by Otay Water District. Our estimate of value for the property is based on the assumption and hypothetical condition that the approximate 10,000 square foot subject site is a separate and independently marketable parcel as of the date of value stated herein. The subject has 100 feet of direct frontage on Jamacha Boulevard, a well-travelled County roadway. According to Mr. Richard Chin, Public Works Project Manager for the County of San Diego, the specific subject site is not required to be served from an interior roadway. Nevertheless, if possible, the County’s preference is to have a combined driveway for the subject ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 8 and the portion of the land to be retained by Otay Water District. As of the date of this appraisal, the subject is a portion of a greater landholding held in title by the water district that is accessed from a point along Jamacha Boulevard at the far westerly point of the property. A representative of the water district has indicated that they will not furnish access over the segment of the site to be retained by the district. Our final estimate of value for the subject is based on the assumption and hypothetical condition that the property is legally accessible from any point along its direct frontage on Jamacha Boulevard. SCOPE OF WORK Critical elements to this appraisal assignment are the identification of the client(s), intended use and user(s), type and definition of value, the effective date of the appraisal, and assignment conditions. These were addressed previously in this report. Another important element is to include relevant characteristics pertaining to the subject property, which are outlined in detail in a later section of the appraisal. In preparing this appraisal, the following steps were taken. • A preliminary survey of the subject property and market area was conducted in order to more accurately define the appraisal problem and identify the methods and techniques necessary to accomplish the objective of this appraisal report. • Legal aspects of the subject property were investigated regarding their potential uses within the context of the surrounding area. Among other things, we reviewed County of San Diego zoning and General Plan summaries and requirements. • We reviewed and analyzed various documents provided by the client including a preliminary title report, site layout, and other documents. • The subject property was inspected by David C. Ottley, MAI of Anderson and Brabant, Inc. on April 9, 2019. • The three traditional approaches to value include the Cost, Sales Comparison, and Income Approaches. Of these three, only the Sales Comparison was considered to have specific applicability in the valuation of the subject parcel as it consists of vacant land. Upon determination of highest and best use, reliable market data were analyzed on the basis of their overall degree of comparability to the appraised property. • A detailed search of the primary market area of the subject property was performed in order collect relevant sales. Sources of data included the County Recorder's office, various market data services, published reports, and personal contacts. These data were confirmed with principals, their representatives, or agents. In order to obtain a thorough understanding of real estate market trends in the subject area, interviews were conducted with numerous local market participants, including real estate agents, and investors. • The final step entailed the organization and drafting of the Appraisal Report. REPORT OPTION This is an Appraisal Report as defined by the Uniform Standards of Professional Appraisal Practice (USPAP). It presents summary discussions of the data, reasoning and analyses that were used in the appraisal process to develop the appraisers’ opinion of value. ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 9 SALES HISTORY OF THE SUBJECT PROPERTY According to public records, the subject has not been involved in a conventional sale transfer within the past three year period, and it is not presently offered for sale on the open market. PAST APPRAISAL SERVICES We have performed no services, as appraisers or in any other capacity, regarding the property that is the subject of this report within the three (3) year period immediately preceding acceptance of this assignment. ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 10 ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 11 LOCATION DESCRIPTION The subject property is located in the unincorporated community of Spring Valley in South San Diego County. San Diego County is the second largest county in the State of California based on population which, as of January 1, 2018, was estimated by the California Department of Finance Demographic Research Unit at 3,337,456 persons. This reflects an increase of about 0.8 percent from the January 1, 2017 total of 3,309,509. Region The County includes the State's second most populous city and offers such geographic features as mountainous regions of the Cleveland National Forest, the Anza Borrego Desert, the International Border with Mexico, and over 50 miles of Pacific Ocean coastline. These features, and the area's temperate year-round climate, are among the county's major attractions. Most of the county's population is located along the coastal region, inland valleys, and foothills, within approximately 25 to 30 miles of the ocean. The mountains and deserts are only sparsely developed and populated. On a regional basis, San Diego County is served by three major freeways. These include Interstate 5, a coastal route connecting San Diego with Baja California to the south and the states of California, Oregon, and Washington to the north; Interstate 8, a major east-west route connecting San Diego with Arizona and other southwestern states to the east; and Interstate 15, an inland route connecting San Diego with Riverside and San Bernardino Counties and other points to the northeast. There are several important local freeways that provide access within the region. These include Interstate 805 that runs inland from and parallel to Interstate 5; State Route 94, parallel to Interstate 8; State Route 163, connecting Interstate 15 with Downtown San Diego; and State Route 78, the major east-west freeway in northern San Diego County. San Diego International Airport (Lindbergh Field) is located about 70 miles to the west of the subject and is close to Downtown San Diego. This airport is serviced by 18 commercial airlines and four scheduled air-freight services. There are an additional eight small public airports located throughout the county. There is little commercial air activity at these facilities. Rail service is provided by San Diego and Arizona Eastern Railroad, Santa Fe Railroad, and Amtrak. Industrial/commercial use of the rail lines for freight carriage has declined in San Diego over the past 15+ years. However, the Amtrak line between San Diego and Los Angeles is popular with commuters. The San Diego Trolley (light rail transit system) has opened several commuter routes in the southern and eastern portions of San Diego County that have proven very popular. Individual transit districts throughout the county provide local bus service. The economy within the San Diego region has improved since experiencing a global financial crisis, considered the worst of its kind since the Great Depression. The poor economic conditions became prominently visible in the past decade with the failure, merger or conservatorship of several large United States-based financial firms. The underlying causes leading to the crisis had been reported in business journals with commentary about the financial stability of leading United States and European investment banks, insurance firms and mortgage banks consequent to the subprime mortgage crisis that commenced in 2007. The failures of large financial institutions in the United States and Europe led to dramatic declines in various stock indexes and significant reductions in the market-value of equities (stock) and commodities worldwide. The crisis led to a liquidity problem and the de-leveraging of financial institutions, ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 12 especially in the United States and Europe, which further accelerated the liquidity crisis. World political leaders, national ministers of finance, and central bank directors coordinated efforts to reduce economic fears. Along with the economic downturn came a marked increase in unemployment. The downturn was then followed by an economic recovery with the stock market reaching record highs, increases in home values, and rising apartment and home rental rates. Optimism as to a growing economy has been further evidenced in notably improved employment statistics. Based on statistical data from the California Employment Development department, the unemployment rate in San Diego County in February 2019 was 3.5 percent. This is low, and unchanged from the rate of 3.5 percent one year earlier. The San Diego County unemployment rate in February 2019 was below both the state level of 4.2 percent and the national rate of 3.8 percent. Community and Neighborhood The subject is located in the Spring Valley community of San Diego County. Spring Valley is a census-designated place (CDP) in San Diego County located approximately ten miles to the east of downtown San Diego, east of State Route 125, and south of State Route 94. It encompasses approximately eleven square miles including La Presa and portions of Casa de Oro. Spring Valley is bounded on the northwest by the city of La Mesa, on the west by the city of Lemon Grove, on the south by the City of San Diego, and on the east by unincorporated areas of San Diego County. The 2016 population of Spring Valley (91977 and 91978 zip codes) was 72,899. Municipal services to Spring Valley are provided by San Diego County. Water services are provided by the Otay and Helix Water Districts and the Sweetwater Authority. Police service is provided by the San Diego County Sheriff and the California Highway Patrol. The San Miguel Consolidated Fire Protection District serves fire defense needs. Most of the land area within Spring Valley is developed with single-family residential uses, but there are over 1,000 businesses in the community ranging from small, family oriented enterprises to heavy industrial. Spring Valley currently has no downtown area, but there are two major business areas. One is the former downtown area on Bancroft Drive from State Route 94 down to Troy Street and on to Sweetwater Road, and the other is in the area known as La Presa in the southeastern portion from approximately Omega Street south to Sweetwater Road. Specifically, the subject property is located in southeast Spring Valley, on the southeast side of Jamacha Boulevard, just to the southwest of the signalized intersection of Sweetwater Springs Boulevard and Jamacha Boulevard. The area immediately surrounding the subject mostly consists of vacant and hilly terrain, much of which is designated open space. Residential neighborhoods are found further north and south, with some mobile home parks and self-storage projects a short distance to the northeast. A few properties to the north and northeast are developed with commercial and industrial uses, oriented toward Jamacha Boulevard and Sweetwater Springs Boulevard. Monte Vista (public) High School is within less than one mile to the north along Sweetwater Springs Boulevard. State Route 94, which provides convenient access to Downtown San Diego to the west, is accessed about one and one-half miles either to the east from Jamacha Boulevard, or to the north from Sweetwater Springs Boulevard. ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 13 AERIAL PHOTOGRAPH OF THE SUBJECT PROPERTY ← North ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 14 (Taken By David C. Ottley, MAI on April 9, 2019) SUBJECT PROPERTY PHOTOGRAPHS The two photos on this page were taken from the northernmost corner of the subject property. The upper photo is directed to the southeast over the north side of the lot, and the lower photo was taken while looking to the south over the parcel. ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 15 (Taken By David C. Ottley, MAI on April 9, 2019) SUBJECT PROPERTY PHOTOGRAPHS These two photos were taken from the westernmost corner of the subject parcel. The upper photo is directed to the east over the center of the lot, while the lower photo was taken while looking to the southeast over southernmost side of the site. ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 16 (Taken By David C. Ottley, MAI on April 9, 2019) SUBJECT PROPERTY PHOTOGRAPHS Looking northeasterly toward the subject site, a surplus parcel held in title by Otay Water District, from a point to the southwest that is to remain under the district ownership. View northeasterly along Jamacha Boulevard from the subject location. The appraised parcel is visible at the right. ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 17 PLAT MAP The appraised parcel is highlighted in orange. ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 18 DESCRIPTION OF REAL ESTATE APPRAISED LAND DESCRIPTION Size and Shape The subject consists of a square shaped parcel of vacant land that is about 10,000 square feet in size with approximate dimensions of 100 feet by 100 feet, per information provided by the client. An Assessor Plat Map on page 17 provides an illustration of the site configuration. Topography The majority of the subject parcel features gently sloping topography, with a moderately to steeply sloping bank along much of its street side. Overall, the property slopes downward from the level of Jamacha Boulevard and also from northeast to southwest. The subject property is outside of a FEMA flood hazard zone according to County of San Diego online mapping services. Please note, however, that the southeast side of the site is designated wetlands based on the County of San Diego Initial Study Research Packet. Flood Zone Designation Soil Conditions We were not furnished with any recently prepared studies relating to subsurface soil conditions associated with the subject property. As part of this appraisal analysis, we have assumed that soil conditions are adequate to allow legally permitted uses of the property in accordance with its estimated highest and best use. Toxic Hazard No Phase I Environmental Site Assessment was furnished that would verify the existence or absence of toxic materials. Our opinion as to the value of the subject property reflects the assumption that there are no toxic wastes on or in the land that would negatively impact its value or use. Seismic Hazard The subject property is not within an “Earthquake Fault Zone” as designated by the California State Division of Mines and Geology. However, the property is located in an area that is prone to seismic events, a condition that it shares with other properties located in the general Southern California area. Utilities All public utilities are available to the subject parcel. These include water, electrical power, natural gas, sewer, and cable. Access The subject is a square shaped parcel with 100 feet of direct frontage on the southeast side of Jamacha Boulevard, an asphalt paved public roadway with asphalt curbing and two traffic lanes in each direction plus two northeast bound turn lanes that approach the signalized intersection of the street with Sweetwater Springs Boulevard a short distance to the northeast. Jamacha Boulevard was previously a state highway, and it has since been placed under the ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 19 jurisdiction of the County of San Diego. According to Mr. Richard Chin, Public Works Project Manager for the County of San Diego, the specific subject site is not required to be served from an interior roadway. Nevertheless, if possible, the County’s preference is to have a combined driveway for the subject and the portion of the land to be retained by Otay Water District. As of the date of this appraisal, the subject is a portion of a greater landholding held in title by the water district that is accessed from a point along Jamacha Boulevard at the far westerly point of the property. A representative of the water district has indicated that they will not furnish access over the segment of the site to be retained by the district. As stated previously, our final estimate of value for the subject is based on the assumption and hypothetical condition that the property is legally accessible from any point along its direct frontage on Jamacha Boulevard. The engineering of physical access to the subject parcel from Jamacha Boulevard could be a challenge due to the differences in elevation between the street and the bulk of the site. Based on our observations, the most gentle transition point from the street is toward the northernmost point of the lot. It appears that the creation of the driveway will likely result in the reduction of usable site area, which could limit use options as the entire site is rather small. Furthermore, the elevation transition between Jamacha Boulevard and the parcel will potentially restrict accessibility from some larger vehicles. Land Use The approximate 7,500 square foot southwest portion of the subject property is zoned M58, High Impact Industrial, by the County of San Diego, while the balance of 2,500 square feet (25 feet by 100 feet) is zoned C30, Office Professional. Among other things, the M58 zone allows unenclosed commercial and industrial operations including construction sales and services. Uses permitted in the C30 zone include administrative and professional offices and other limited commercial uses. The General Plan designation for the entire property is Public/Semi-Public Facilities, which identifies major facilities built and maintained for public use. Examples include institutional uses, academic facilities, governmental complexes, and community service facilities, such as County airports, public schools, correctional institutions, solid waste facilities, water facilities, and sewer facilities. This designation may include privately owned facilities built and maintained for public use. A maximum floor area ratio (FAR) of 0.50 is permitted by this designation. Easements and Encumbrances The subject property encompasses a portion of Assessor Parcel Number 505-672-19-00, and all of Assessor Parcel Number 505-672-20-00. We were provided with preliminary title reports relating to all of Parcels 505-672-19-00 and 20-00. The two reports were prepared by First American Title Company, are dated January 25, 2019, and can be identified by reference to Order Nos. DIV-5854433 and DIV-5854434. Copies of the title documents are included in the Addenda section of this report. Two easements for public utilities are set forth in the title reports, but the locations of these encumbrances could not be determined by the title company. For purposes of this appraisal, the assumption is made that the existence of these two existing easements does not negatively impact the use or value of the subject in accordance with its estimated highest and best use. ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 20 IMPROVEMENT DESCRIPTION With the exception of some perimeter fencing surrounding most of Assessor Parcel Numbers 505-672-19-00 and 20-00, the subject property is comprised of an unimproved parcel of land. ASSESSMENT DATA The subject includes all of Assessor Parcel Number 505-672-20-00 and a portion of Parcel Number 505-672-19-00. The land is owned by Otay Water District and is not assessed or taxed. The Tax Rate Area for the land is 83213, and properties in this area are subject to a tax rate of 1.15603 percent, or $1.15603 per $100 of the assessed value, for the year 2018/2019 plus additional bonded indebtedness. ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 21 VALUATION HIGHEST AND BEST USE Highest and Best Use is an important concept in real estate valuation as it represents the premise upon which value is based. As used in this report, Highest and Best Use is defined as follows. “The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legally permissible, physical possibility, financial feasibility, and maximum productivity.” 2 The conclusion of highest and best use is determined by social, economic, governmental, and physical forces. The concept addresses the question of legally allowable, physically possible, economically feasible, and maximally productive uses. Potential alternative uses of the property must be considered in the highest and best use analysis. Once the legally allowable and physically possible uses have been identified, the economic viability of the various uses must be determined. The use is financially feasible if it provides a positive return to the land. The highest and best use is that use that provides the highest overall return. Legally Permissible The General Plan designation for entire property is Public/Semi-Public Facilities, which identifies major facilities built and maintained for public use. Examples include institutional uses, academic facilities, governmental complexes, and community service facilities, such as water and sewer facilities. This designation may include privately owned facilities built and maintained for public use. A maximum floor area ratio (FAR) of 0.50 is permitted by this designation. It is our understanding that the General Plan designation was placed on the parcel due to its ownership by a public water company and that development consistent with the zoning would require a General Plan amendment. : The subject consists of a ±10,000 square foot parcel of vacant land of which the approximate 7,500 square foot southwest portion is zoned M58, High Impact Industrial, by the County of San Diego, while the balance of 2,500 square feet (25 feet by 100 feet) is zoned C30, Office Professional. Among other things, the M58 zone allows unenclosed commercial and industrial operations including construction sales and services. Uses permitted in the C30 zone include administrative and professional offices and other limited commercial uses. Physically Possible: The appraised parcel is a square shaped, mostly gently sloping parcel of land situated below the grade of Jamacha Boulevard. All public utilities are immediately available to the subject property, and the land presumably has direct frontage to and from Jamacha Boulevard, a public roadway (see ‘Hypothetical Conditions’ on page 7 of this report). Development options may be limited due to the small parcel size and the potential impact on site usability upon making an allowance for an access road to and from the lot. Furthermore, the elevation transition between Jamacha Boulevard and the parcel will potentially restrict accessibility from some larger vehicles. 2 The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015), p. 109 ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 22 Economically Feasible and Maximally Productive: The issue of economic feasibility focuses primarily on supply and demand characteristics of the local land market balanced against site development and infrastructure costs, along with the cost and time to obtain development approval. A maximally productive use is one that provides the greatest return or value. Over the past three+ year period, there has been plenty of market evidence of increasing demand for vacant parcels that can accommodate industrial and commercial development in the local area, and this has resulted in an increase in land prices in the area. However, the use of the subject for industrial and/or commercial purposes will likely be hampered due to potential site development costs necessary to bring the land to a usable state as it is situated below street grade with no improved access. Conclusion: Based on the preceding, we have determined that the highest and best use of the subject property is development with a small industrial or commercial use that conforms with the underlying land use criteria established by the County of San Diego. VALUATION METHODOLOGY Of the three common valuation approaches in real estate appraisal, the Sales Comparison Approach was considered to be the only pertinent method in the analysis of the subject property. Neither the Cost Approach nor Income Approach was considered applicable or useful in the valuation process. The Sales Comparison Approach relies on the concept that a prudent purchaser would pay no more to buy a property than it would cost to acquire a comparable substitute. Sales of similar properties are analyzed based on a direct comparison with the subject to arrive at an indication of value. The preceding sections of this report provide a description of the subject, and the following section includes a discussion and analysis of the data used in the valuation process. The unit of comparison is the price paid per square foot of land area. SALES COMPARISON APPROACH We carefully investigated the marketplace in an attempt to discover recent sales of industrial and commercial parcels in the subject market area with development limitations similar to the subject that could be related to the appraised site on a direct comparison basis. As a result of our investigation, we selected five closed transactions from the information gathered and utilized these in the valuation analysis of the appraised property by the Sales Comparison Approach. A summary of the market data is on page 24, and a location map that illustrates the location of the four items of data in relation to the subject is on page 23. The summary is followed by a discussion of the data and an adjustment grid that recognizes differences between the comparables and the subject. Aerial and ground level photographs of the data are included in the Addenda section of this report. ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 23 ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 24 Datum No Location/APN Thos Bros Map Code Sale Date Doc No Buyer/Seller Parcel Size (SF)Zone Topo Sale Price Price/ Net SF Comments Subject SE side Jamacha Blvd Spring Valley 505-672-20 & Portion of 505-672-19 1291-F1 ------ --- / Otay Municipal Water District 10,000 M58 (Industrial) & C30 (Office Prof) County of San Diego Mostly gently to moderately sloping ------ Will require General Plan amendment from Public/Semi-Public Facilities which was applied due to prior ownership by water district. 1 8430 Paradise Valley Rd Spring Valley 584-160-52 1291-A4 Jun-18 228719 BPIIE/ Hydrosen Properties Inc 18,047 M54 (Industrial) County of San Diego Mostly level $350,000 $19.39 At signalized intersection of Paradise Valley Road and Elkelton Place, with exposure and good access to 125 freeway. Intended for commercial use. 2 1365 Presioca St Spring Valley 578-201-14 1291-B2 Jul-16 96806 Dowsing Trust/ Cabana Properties LLC 59,677 M52 & M54 (Industrial) County of San Diego Level $800,000 $13.41 Interior, unpaved contractor's storage yard with small, older office building. 3 1341 E Main St El Cajon 489-180-62 1232-A5 Jul-18 288269 Albehadili/ La Maestra Family Clinic Inc 34,848 CG (Comm'l) City of El Cajon Level $800,000 $22.96 Interior parcel with frontage on both north and south sides. 4 8600 Block Railroad Ave Santee 384-410-49 1231-E7 Mar-17 96806 Martin/ Cozza Properties LLC 6,480 IL (Light Industrial) City of Santee Level $85,000 $13.12 Rectangular shaped, 54' by 120', industrially zoned parcel at end of cul- de-sac adjacent to SR-52. Sold previously in May 2014 for $58,500 or $9.03/SF. 5 S Santa Fe Ave San Marcos 219-114-21 1108-D4 Sep-16 487645 Said/ Hayden 8,582 LI (Light Industrial) City of San Marcos Mostly moderately sloping $50,000 $5.83 Very irregularly shaped site that backs to railway. Purchased for speculation. SUMMARY OF MARKET DATA ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 25 Comparable No. 1 is the August 2018 transfer of an 18,047 square foot, irregularly shaped parcel located within about three mile to the southwest of the subject in Spring Valley at the east side of the signalized intersection of Paradise Valley Road and Elkelton Place, just to the west of State Highway 125. The site is mostly level and situated at street grade. All public utilities are at or within close proximity to the property. The effective underlying land uses provide for industrial development, and some commercial uses are permitted. Comparable No. 1 was purchased for a commercial use at a price of $350,000 or $19.39 per square foot, all cash to the seller. When compared with the subject, Sale No. 1 is superior for location and commercial exposure, and also for topographic features and overall site condition. This property and all of the other data are further superior as, unlike the subject, any new development will not require a General Plan amendment to align with the underlying zoning. Comparable No. 2 is the July 2016 purchase of a 59,677 square foot (1.37 acre) parcel located about three miles to the southwest of the subject in Spring Valley at 1365 Presioca Street for $800,000 or $13.41 per square foot, all cash to the seller. The site is an inverted “L” shape and accessed via an unpaved easement road extending north from Presioca Street. All public utilities are available at the site, and some outside storage is allowed by zone. The property has been used as a secured contractor’s yard with an old 700 square foot residence utilized as a contractor’s office. The broker stated that it would be necessary to obtain street dedication from Presioca Street to the site and install curbs, gutters and sidewalks before any new construction could take place. The buyer did not intend to construct a new building on the site, and the plan is to retain the existing contractor’s office. Sale 2 is superior to the subject for site condition and usability. It is also superior for the added value of the existing building, and inferior for commercial exposure. We also made an upward adjustment for changes in market conditions since 2016 when this property sold. Comparable No. 3 relates to the July 2018 purchase of a vacant, 34,848 square foot, irregularly shaped, interior, commercially zoned parcel of land located about seven miles to the northeast of the subject in the City of El Cajon between East Main Street to the north and Melody Lane to the south. All public utilities are readily available at the site. The intended use of the parcel was not disclosed. Sale 4 conveyed at a price of $800,000 or $22.96 per square foot, all cash to the seller. It is superior to the subject for location, site condition, and usability. Comparable No. 4 is the March 2017 transfer of a parcel that is indicated to have dimensions of 54 feet by 120 feet on the Assessor Parcel Map, thus having a total land area of 6,480 square feet. The land is located about nine miles driving distance distance to the north of the subject in the City of Santee on the west side of the 8600 block of Railroad Avenue, and just to the south and below the grade of a stretch of State Route 52 (to freeway standards) that was completed in 2011. The lot is rectangular in configuration, level, and positioned at street grade. It is zoned for light industrial development, and all public utilities are readily available. The property conveyed at a price of $85,000 or $13.12 per square foot of land area. The seller carried $55,000 of the total compensation, and it is our understanding that the terms did not influence the sale price. It is noted that the site sold previously in May 2014 for $58,500, at which time the seller was in the process of preparing a plan to develop the parcel with a small industrial building. When compared with the subject, Sale 4 is judged to be superior for topography and usability, and it is inferior for overall location and exposure. ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 26 Comparable No. 5 pertains to the September 2016 transfer of a very irregularly shaped, mostly moderately sloping, 8,582 square foot parcel of vacant, industrially zoned land located about 44 miles to the north of the subject in the City of San Marcos on the northeast side of South Santa Fe Avenue. The parcel sold for speculation at a price of $50,000 or $5.83 per square foot, and the seller carried a note for $35,000 at terms that were considered to be at market. All public utilities are available to the site, which is zoned and designated for light industrial use. When compared with the subject, Sale 5 is judged to be inferior for location and site configuration. Additionally, we applied an upward adjustment for changes in market conditions since the date of this sale in 2016. In addition to these five comparables, we are aware of the May 2018 sale of an 8,310 square foot, very irregularly shaped, mostly level parcel of commercially zoned land located approximately six miles to the northwest of the subject in the City of La Mesa between Parkway Drive to the north, Fletcher Parkway to the south, and Jackson Drive to the west. All public utilities are at or in the vicinity of the parcel. The seller was the City of San Diego, and the buyer is the owner of the adjoining site that is improved with an auto oil change service facility. The lot, which is predominantly encumbered with a subsurface pipeline easement, was purchased for additional parking for the existing business. Prior to the sale, the parcel had been appraised for $150,000 or $18.05 per square foot assuming it was to be assembled to the neighboring parcel, and $75,000 or $9.03 per square foot as an independent site. The buyer negotiated to purchase the parcel for $255,000 or $30.69 per square foot, and the seller was cashed out in the transaction. By comparison with the subject, this property is notably superior for location and site topography, and inferior for configuration and the existing easement encumbrance. Based on the other data, it appears that this price for the site well exceeds market value would can be attributed to the buyer’s motivation to add the site to his adjoining property. Summary and Conclusion of Value: In this analysis, several elements of comparison were considered as to their relative effect on price. Our analysis recognizes differences in such factors as property rights conveyed, financing terms, conditions of sale, market conditions, location, access, exposure, parcel size, site condition/topography, configuration, availability of public utilities, and other factors. Financing was not a factor for any of the sales considered in this analysis as the sellers were either cashed out in the transactions or the sellers carried portions of the total consideration at what were considered to reflect market rates and terms. Regarding parcel size, the market generally responds to size differences due to supply and demand factors that typically result in a larger pool of potential buyers for smaller sites due to the comparatively lower total financial commitment involved. The result is that smaller parcels commonly attract greater per square foot prices than larger parcels of similar use. In this analysis, it appears that the differences in size between the subject and all of the data are not significant enough to warrant adjustments. Additionally, a review of the data support the conclusion that commercial and industrial land in the subject market area experienced price escalation since 2016 when Sale Nos. 2 and 5 occurred, and we applied upward adjustments to those data to account for improved market conditions. There is insufficient support from the marketplace to suggest a quantifiable adjustment for changes in market conditions to the other comparables that occurred within about two years of the date of value. A summary of quantitative adjustments made to the data to account for noted differences between those properties and the subject is on page 27. The five items of market data conveyed ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 27 at prices ranging from $5.83 to $22.96 per square foot. As can be seen, the comparables suggest a value for the subject between $8.33 and $11.15 per square foot. The average indicated value from the data is $9.92 per square foot, and the median is $10.33 per square foot. Sales 1, 3, and 5 are closest to the subject for size, and two of these support a value for the subject between $8.33 and $8.73 per square foot. Comp No 1 2 3 4 5 Price Per Square Foot $19.39 $13.41 $22.96 $13.12 $5.83 Property Rights 0.0%0.0%0.0%0.0%0.0% Financing 0.0%0.0%0.0%0.0%0.0% Conditions of Sale 0.0%0.0%0.0%0.0%0.0% Market Conditions 0.0%10.0%0.0%0.0%10.0% Net Adjustment 0.0%10.0%0.0%0.0%10.0% Adjusted Value Per Square Foot $19.39 $14.75 $22.96 $13.12 $6.41 Location & Exposure -15.0%10.0%-15.0%15.0%10.0% Parcel Size 0.0%0.0%0.0%0.0%0.0% Site Condition & Configuration -30.0%-20.0%-30.0%-20.0%30.0% Land Use -10.0%-10.0%-10.0%-10.0%-10.0% Utilities 0.0%0.0%0.0%0.0%0.0% Improvements/Other 0.0%-5.0%0.0%0.0%0.0% Net Adjustment -55.0%-25.0%-55.0%-15.0%30.0% Indicated Value Per Square Foot $8.73 $11.06 $10.33 $11.15 $8.33 Land Sale Data Adjustment Grid Based on our analysis of the data and considering the overall legal and physical attributes of the ±10,000 square foot subject parcel, it is our opinion that the market value of the property, as of April 9, 2019, is equal to $10.00 per square foot. When this amount is applied to the indicated land area, the result is a total property value of $100,000 (10,000 square feet x $10.00 per square foot = $100,000. ONE HUNDRED THOUSAND DOLLARS ($100,000) ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. Addenda ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. MARKET DATA PHOTOGRAPHS Comparable No. 1 – 8430 Paradise Valley Road, Spring Valley ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. MARKET DATA PHOTOGRAPHS Comparable No. 2 – 1365 Presioca Street, Spring Valley ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. MARKET DATA PHOTOGRAPHS Comparable No. 3 – 1341 East Main Street, El Cajon ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. MARKET DATA PHOTOGRAPHS Comparable No. 4 – 8600 Block Railroad Avenue, Santee ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. MARKET DATA PHOTOGRAPHS Comparable No. 5 – South Santa Fe Avenue, San Marcos EXHIBIT C FOR SALE Vince Provenzano President of Brokerage Vince@PacificCoastCommercial.com Lic. 00780182 (619)469-3600 | 10721 Treena St., Ste 200 | San Diego, CA 92131 | www.PacificCoastCommercial.com | Lic. 01209930 Tyler McKee Sales & Leasing Associate Tyler@PacificCoastCommercial.com Lic. 02082617 The information contained herein has been given to us by the owner of the property or other sources we deem reliable, we have no reason to doubt its accuracy, but we do not guarantee it. All information including zoning and use should be verified prior to purchase. Vacant Industrial/Commercial Lot ±10,000 SF | Sale Price: $150,000 EXHIBIT D development opportunity ±10,000 sf vacant land SPRING VALLEY property features • South Side of Jamacha Boulevard, Spring Valley, CA 91978 • +/- 10,000 SF Parcel of Vacant Land • APN #: 505-672-20-00 and a Portion of 505-672-19-00 development opportunity • Zoned: M58 and C30, County of San Diego • Development of Industrial or Commercial Use (7,500:2,500) • 100 Feet of Direct Frontage on Jamacha Blvd., a Well Traveled Roadway • Sale Price: $150,000 Immediate Access to Hwy 54, with Easy Access to Hwy 94 & 125 Heavily Populated Suburban Area Covering Approx. 13.5 Miles 19,617 Vehicles Per Day On Jamacha Blvd & Folex Way Average Household Income: $93,939 within a 1 Mile Radius (2019) Information Source: CoStar Spring Valley is the largest un-incorporated community in the county of San Diego, covering thirteen and a half square miles. The predominant land use in the area is single family residential, but since the 1970’s denser housing areas have been developed. The market for residential properties in the Spring Valley Area has been improving for the last several years. The high concentration of residential properties has benefited both retail and office properties. Public transportation is provided by the Metropolitan Transit System which has several bus routes serving the community. 59,639 population owner occupied 284,451 full time population 65,111 day time population 293,521 population growth (2024) $87,099 avg. household income 95,356 # of households 8,526 businesses $2.8B consumer spending * demographics source: costar, based upon a 5 mile radius 57,065 population renter occupied spring valley | market snapshot Jamacha Boulevard, Spring Valley, CA 91978 aerial | surrounding area DocuSign Envelope ID: 73F78F9D-5428-41AC-9A7C-F41B0391EF96 4-� C A L 1 F O R N I A A� ASSOCIATION� OF REALTORS ...- DISCLOSURE REGARDING REAL ESTA TE AGENCY RELATIONSHIP (Buyer's Brokerage Firm to Buyer) (As required by the Civil Code) (C.A.R. Form AD, Revised 12/18) 0 (If checked) This form is being provided in connection with a transaction for a leasehold interest exceeding one year as per Civil Code section 2079.130), (k) and (I). When you enter into a discussion with a real estate agent regarding a real estate transaction, you should from the outset understand what type of agency relationship or representation you wish to have with the agent in the transaction. SELLER'S AGENT A Seller's agent under a listing agreement with the Seller acts as the agent for the Seller only. A Seller's agent or a subagent of that agent has the following affirmative obligations: To the Seller: A Fiduciary duty of utmost care, integrity, honesty and loyalty in dealings with the Seller. To the Buyer and the Seller: (a)Diligent exercise of reasonable skill and care in performance of the agent's duties.(b)A duty of honest and fair dealing and good faith.(c) A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, orwithin the diligent attention and observation of, the parties. An agent is not obligated to reveal to either party any confidentialinformation obtained from the other party that does not involve the affirmative duties set forth above. BUYER'S AGENT A Buyer's agent can, with a Buyer's consent, agree to act as agent for the Buyer only. In these situations, the agent is not the Seller's agent, even if by agreement the agent may receive compensation for services rendered, either in full or in part from the Seller. An agent acting only for a Buyer has the following affirmative obligations: To the Buyer: A fiduciary duty of utmost care, integrity, honesty and loyalty in dealings with the Buyer. To the Buyer and the Seller: (a) Diligent exercise of reasonable skill and care in performance of the agent's duties.(b)A duty of honest and fair dealing and good faith.(c) A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties. An agent is not obligated to reveal to either party any confidentialinformation obtained from the other party that does not involve the affirmative duties set forth above. AGENT REPRESENTING BOTH SELLER AND BUYER A real estate agent, either acting directly or through one or more salespersons and broker associates, can legally be the agent of both the Seller and the Buyer in a transaction, but only with the knowledge and consent of both the Seller and the Buyer. In a dual agency situation, the agent has the following affirmative obligations to both the Seller and the Buyer: (a)A fiduciary duty of utmost care, integrity, honesty and loyalty in the dealings with either the Seller or the Buyer.(b)Other duties to the Seller and the Buyer as stated above in their respective sections.In representing both Seller and Buyer, a dual agent may not, without the express permission of the respective party, disclose to the other party confidential information, including, but not limited to, facts relating to either the Buyer's or Seller's financial position, motivations, bargaining position, or other personal information that may impact price, including the Seller's willingness to accept a price less than the listing price or the Buyer's willingness to pay a price greater than the price offered. SELLER AND BUYER RESPONSIBILITIES Either the purchase agreement or a separate document will contain a confirmation of which agent is representing you and whether that agent is representing you exclusively in the transaction or acting as dual agent. Please pay attention to that confirmation to make sure it accurately reflects your understanding of your agent's role. The above duties of the agent in a real estate transaction do not relieve a Seller or Buyer from the responsibility to protect his or her own interests. You should carefully read all agreements to assure that they adequately express your understanding of the transaction. A real estate agent is a person qualified to advise about real estate. If legal or tax advice is desired, consult a competent professional. If you are a Buyer, you have the duty to exercise reasonable care to protect yourself, including as to those facts about the property which are known to you or within your diligent attention and observation. Both Sellers and Buyers should strongly consider obtaining tax advice from a competent professional because the federal and state tax consequences of a transaction can be complex and subject to change. Throughout your real property transaction you may receive more than one disclosure form, depending upon the number of agents assisting in the transaction. The law requires each agent with whom you have more than a casual relationship to present you with this disclosure form. You should read its contents each time it is presented to you, considering the relationship between you and the real estate agent in your specific transaction. This disclosure form includes the provisions of Sections 2079.13 to 2079.24, inclusive, of the Civil Code set forth on page 2. Read it carefully. I/WE ACKNOWLEDGE RECEIPT OF A COPY OF THIS DISCLOSURE AND THE PORTIONS OF THE CIVIL CODEPRINTED ON THE BACK (OR A SEPra)o': , � 8/27/20200 Buyer O Seller O Landlord □ Tenant ��c: Date _________ _ a OEA45214C4. 0 Buyer O Seller O Landlord □ Tenant ________________________ Date _________ _ Agent __________ _,P-=a=-=c:.:.:if.c.:..:ic=-=.C.=.oa=-=s=-=t-=C:..::o:.:.:mc:..:m=er'-"c"-'ia='-I __________ DRE Lie.# .,,0-"12::.:0:..::9c:9.=.3.:..0 __________ _ Real Estate Broker (Firm} By ____________________ DRE Lie.# .,;:0�07�8!.!e0:.!.1.!!c82!:..__---,�'\-+----Date _________ _ (Salesperson or Broker-Associate, if any} Vince Provenzano 01991-2018. California Association of REALTORS®. Inc. By:._---1'-c-=✓--AO REVISED 12/18 (PAGE 1 OF 2) Gen, ra counsel DISCLOSURE REGARDING REAL ESTATE AGENCY RELAT ONSHIP AD PAGE 1 OF 2 P:1cifir Coast Connntrtial. 10721 Trttna Street. Suite 200 San Diego CA 9213 I Phone: 619.469.3600 Fax: 858.560.5604 Vinrc JJrovcnzano Produced with Lone 'Nolf Transactions (z1pForm Edition) 231 Shearson Cr. Cambridge. Ontario, Canada N1T 1J5 www.lwolf.com Jamacha Blvd• EXHIBIT E DocuSign Envelope ID: 73F78F9O-5428-41AC-9A7C-F4180391 EF96 CIVIL CODE SECTIONS 2079.13-2079.24 (2079.16 APPEARS ON THE FRONT) 2079.13. As used in Sections 2079.7 and 2079.14 to 2079.24, inclusive, the following terms have the following meanings: (a) "Agent" means a person acting under provisions of nue 9 (commencing with Section 2295) in a real property transaction, and includes a person who is licensed as a real estate broker under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code, and under whose license a listing is executed or an offer to purchase is obtained. The agent in the real property transaction bears responsibility for that agent's salespersons or broker associates who perform as agents of the agent. Wnen a salesperson or broker associate owes a duty to any principal, or to any buyer or seller who is not a principal, in a real property transaction. that duty is equivalent to the duty owed to that party by the broker for whom the salesperson or broker associate functions. (b) "Buyer" means a transferee in a real property transaction, and includes a person who executes an offer to purchase real property from a seller through an agent, or who seeks the services of an agent in more than a casual, transitory. or preliminary manner. with the object of entering into a real property transaction. "Buyer" includes vendee or lessee of real property. (c) "Commercial real property' means all real property in the state, except (1) single-family residential real property, (2) dwelling units made subject to Chapter 2 (commencing with Section 1940) of Title 5, (3) a mobilehome. as defined in Section 798.3, (4) vacant land, or (5) a recreational vehicle, as defined in Section 799.29. (d) "Dual agent' means an agent acting, either directly or through a salesperson or broker associate. as agent for both the seller and the buyer in a real property transaction. (e) "Listing agreement' means a written contract between a seller of real property and an agent. by which the agent has been authorized to sell the real property or to find or obtain a buyer. including rendering other services for which a real estate license is required to the seller pursuant to the terms of the agreement. (f) "Seller's agent" means a person who has obtained a listing of real property to act as an agent forcompensation.(g) "Listing price" is the amount expressed in dollars specified in the listing for which the seller is willing to sell the real property through the seller's agent. (h) "Offering price· is the amount expressed in dollars specified in an offer to purchase for which the buyer is willing to buy the real property. (i) "Offer to purchase· means a written contract executed by a buyer acting through a buyer's agent that becomes the contract for the sale of the real property upon acceptance by the seller. (j) "Real property· means any estate specified by subdivision (1) or (2) of Section 761 in property. and includes (1) single-family residential property, (2) multiunit residential property with more than four dwelling units. (3) commercial real property, (4) vacant land, (5) a ground lease coupled with improvements, or (6) a manufactured home as defined in Section 18007 of the Health and Safety Code, or a mobilehome as defined in Section 18008 of the Health and Safety Code, when offered for sale or sold through an agent pursuant to the authority contained in Section 10131.6 of the Business and Professions Code. (k) "Real property transaction" means a transaction for the sale of real property in which an agent is retained by a buyer, seller. or both a buyer and seller to act in that transaction, and includes a listing or an offer to purchase. (I) "Sell," "sale," or ·sold" refers to a transaction for the transfer of real property from the seller to the buyer and includes exchanges of real property between the seller and buyer, transactions for the creation of a real property sales contract within the meaning of Section 2985, and transactions for the creation of a leasehold exceeding one year's duration. (m) "Seller" means the transferor in a real property transaction and includes an owner who lists real property with an agent, whether or not a transfer results, or who receives an offer to purchase real property of which he or she is the owner from an agent on behalf of another. "Seller" includes both a vendor and a lessor of real property. (n) "Buyer's agent" means an agent who represents a buyer in a real property transaction. 2079.14. A seller's agent and buyer's agent shall provide the seller and buyer in a real property transaction with a copy of the disclosure form specified in Section 2079.16, and shall obtain a signed acknowledgment of receipt from that seller and buyer, except as provided in Section 2079.15, as follows: (a) The seller's agent. if any, shall provide the disclosure form to the seller prior to entering into the listing agreement. (b) The buyer's agent shall provide the disclosure form to the buyer as soon as practicable prior to execution of the buyer's offer to purchase. If the offer to purchase is not prepared by the buyer's agent. the buyer's agent shall present the disclosure form to the buyer not later than the next business day after receiving the offer to purchase from the buyer. 2079.15. In any circumstance in which the seller or buyer refuses to sign an acknowledgment of receipt pursuant to Section 2079.14, the agent shall set forth. sign, and date a written declaration of the facts of the refusal. 2079.16 Reproduced on Page 1 of this AD form. 2079.17(a) As soon as practicable. the buyer's agent shall disclose to the buyer and seller whether the agent is acting in the real property transaction as the buyer's agent, or as a dual agent representing both the buyer and the seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller, the buyer. and the buyer's agent prior to or coincident with execution of that contract by the buyer and the seller, respectively. (b) As soon as practicable, the seller's agent shall disclose to the seller whether the seller's agent is acting in the real property transaction as the seller's agent, or as a dual agent representing both the buyer and seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller and the seller's agent prior to or coincident with the execution of that contract by the seller. CONFIRMATION: The following agency relationships are confirmed for this transaction: Seller's Brokerage Firm DO NOT COMPLETE. SAMPLE ONLY License Number ______ _ Is the broker of (check one): D the seller; or D both the buyer and seller. (dual agent) Seller's Agent DO NOT COMPLETE. SAMPLE ONLY License Number ______ _ Is (check one): D the Seller's Agent. (salesperson or broker associate) D both the Buyer's and Seller's Agent. (dual agent) Buyer's Brokerage Firm DO NOT COMPLETE. SAMPLE ONLY License Number ______ _ Is the broker of (check one): D the buyer; or D both the buyer and seller. (dual agent) Buyer's Agent DO NOT COMPLETE. SAMPLE ONLY License Number ______ _ Is (check one): D the Buyer's Agent. (salesperson or broker associate) D both the Buyer's and Seller's Agent. (dual agent) (d)The disclosures and confirmation required by this section shall be in addition to the disclosure required by Section 2079.14. An agent's duty to provide disclosure and confirmation of representation in this section may be performed by a real estate salesperson or broker associate affiliated with that broker. 2079.18 (Repealed pursuant to AB-1289) 2079.19 The payment of compensation or the obligation to pay compensation to an agent by the seller or buyer is not necessarily determinative of a particularagency relationship between an agent and the seller or buyer. A listing agent and a selling agent may agree to share any compensation or commission paid, or any right to any compensation or commission for which an obligation arises as the result of a real estate transaction, and the terms of any such agreement shall not necessarily be determinative of a particular relationship. 2079.20 Nothing in this article prevents an agent from selecting, as a condition of the agent's employment, a specific form of agency relationship not specifically prohibited by this article if the requirements of Section 2079.14 and Section 2079.17 are complied with.2079.21 (a) A dual agent may not, without the express permission of the seller, disclose to the buyer any confidential information obtained from the seller. (b) A dualagent may not, without the express permission of the buyer, disclose to the seller any confidential information obtained from the buyer. (c) "Confidential information· means facts relating to the client's financial position, motivations, bargaining position, or other personal information that may impact price, such as the seller is willing to accept a price less than the listing price or the buyer is willing to pay a price greater than the price offered. (d) This section does not alter in any way the duty or responsibility of a dual agent to any principal with respect to confidential information other than price. 2079.22 Nothing in this article precludes a seller's agent from also being a buyer's agent. If a seller or buyer in a transaction chooses to not be represented by an agent, that does not, of itself, make that agent a dual agent. 2079.23 A contract between the principal and agent may be modified or altered to change the agency relationship at any time before the performance of the act which is the object of the agency with the written consent of the parties to the agency relationship.2079.24 Nothing in this article shall be construed to either diminish the duty of disclosure owed buyers and sellers by agents and their associate licensees.subagents, and employees or to relieve agents and their associate licensees. subagents, and employees from liability for their conduct in connection with acts governed by this article or for any breach of a fiduciary duty or a duty of disclosure. © 1991-2018, California Association of REALTORS®, Inc. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS®. NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE. CONSULT AN APPROPRIATE PROFESSIONAL. IJ Published and Distributed by; REAL ESTATE BUSINESS SERVICES. LLC. a subsidia,y of the California Association of REAL TORS® .. 525 South Virgil Avenue, Los Angeles, California 90020 AD REVISED 12/18 (PAGE 2 OF 2) DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIP (AD PAGE 2 OF 2) Produced w11h Lone Wolf Transactions (z,pForm Edition) 231 Shearson Cr. Cambridge, Ontario. Canada N1T 1J5 www.lwolf.com hmach• lll•d • DocuSign Envelope ID: 73F78F9O-5428-41AC-9A7C-F4180391EF96 CALIFORNIA ASSOCIATION OF REALTORS.a; POSSIBLE REPRESENTATION OF MORE THAN ONE BUYER OR SELLER -DISCLOSURE AND CONSENT (C.A.R. Fann PRBS, Revised 12/18) A real estate broker (Broker), whether a corporation, partnership or sole proprietorship, may represent more than one buyer or seller. This multiple representation can occur through an individual licensed as a broker or salesperson or through different individual broker's or salespersons (associate licensees) acting under the Broker's license. The associate licensees may be working out of the same or different office locations. Multiple Buyers: Broker (individually or through its associate licensees) may be working with many prospective buyers at the same time. These prospective buyers may have an interest in, and make offers on, the same properties. Some of these properties may be listed with Broker and some may not. Broker will not limit or restrict any particular buyer from making an offer on any particular property whether or not Broker represents other buyers interested in the same property. Multiple Sellers: Broker (individually or through its associate licensees) may have listings on many properties at the same time. As a result, Broker will attempt to find buyers for each of those listed properties. Some listed properties may appeal to the same prospective buyers. Some properties may attract more prospective buyers than others. Some of these prospective buyers may be represented by Broker and some may not. Broker will market all listed properties to all prospective buyers whether or not Broker has another or other listed properties that may appeal to the same prospective buyers. Dual Agency: If Seller is represented by Broker, Seller acknowledges that broker may represent prospective buyers of Seller's property and consents to Broker acting as a dual agent for both seller and buyer in that transaction. If Buyer is represented by Broker, buyer acknowledges that Broker may represent sellers of property that Buyer is interested in acquiring and consents to Broker acting as a dual agent for both buyer and seller with regard to that property. In the event of dual agency, seller and buyer agree that: a dual agent may not, without the express permission of the respective party, disclose to the other party confidential information, including, but not limited to, facts relating to either the buyer's or seller's financial position, motivations, bargaining position, or other personal information that may impact price, including the seller's willingness to accept a price less than the listing price or the buyer's willingness to pay a price greater than the price offered; and except as set forth above, a dual agent is obligated to disclose known facts materially affecting the value or desirability of the Property to both parties. Offers not necessarily confidential: Buyer is advised that seller or listing agent may disclose the existence, terms, or conditions of buyer's offer unless all parties and their agent have signed a written confidentiality agreement. Whether any such information is actually disclosed depends on many factors, such as current market conditions, the prevailing practice in the real estate community, the listing agent's marketing strategy and the instructions of the seller. Buyer and seller understand that Broker may represent more than one buyer or more than one seller and even both buyer and seller on the same transaction and consents to such relationships. Seller and/or Buyer acknowledges reading and understanding this Possible Representation of More Than One Buyer or Seller -Disclo nd Consent and agrees to the agency possibilities disclosed. Seller OWD, Jose Martinez, General Manager Date � • "t.,-z_o SelleF. . Date ____ _ Buye�,., Dan Miller Date 812712020 Buye • • Date ____ _ Buy�M�e Firm Pacific Coast CommercialBy �et p'l-9i'� in�fs{�KWJlJ.l_no Sel13Efftl'R@!'ffi§e Firm Pacific Coast Commercial By 1/�P-ww� . FJIJ�Y#�_(IO DRE Lie# 01209930 Date 8127 /2020 DRE Lie# 00780182 Date DRE Lie # 01209930DRE Lie# 00780182 ----- Date 8/27/2020 Date ____ _ © 2018, California Association of REALTORS®, Inc. United States copyright law (TiUe 17 U.S. Code) forbids the unauthorized distribution, display and reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE. CONSULT AN APPROPRIATE PROFESSIONAL. This form is made available to real estate professionals through an agreement with or purchase from the California Association of REAL TORS®. It is not intended to identify the user as a REAL TOR®. REAL TOR® is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REAL TORS® who subscribe to its Code of Ethics. I] Published and Distributed by: REAL ESTATE BUSINESS SERVICES, LLC. a subsidiary of the California Association of REAL TORS® • 525 South Virgil Avenue, Los Angeles, California 90020 PRBS REVISED 12/18 (PAGE 1 OF 1) POSSIBLE REPRESENTATION OF MORE THAN ONE BUYER OR SELLER PRBS PAGE 1 OF 1 Pacific Coasl Commercial, 10721 Treenn Street. Suite 200 San DitJtO CA 9213 I Phone: 619.-169.J600 Fax: 8S8.S60.S60-& Vince Pro\·enzano Produced with Lone \IVolf Transactions (z1pForm Edition) 231 Shearson Cr. Cambndge, Ontano, Canada N1T 1J5 www.twolf.com Janrnrlrn Blvd - DocuSign Envelope ID: 73F78F9O-5428-41 AC-9A7C-F41 B0391 EF96 4-� C A L I F O RN I A ,., ASSOCIATION � OF REALTORS� WIRE FRAUD AND ELECTRONIC FUNDS TRANSFER ADVISORY (C.A.R. Form WFA, Revised 12/17) Property Address: Jamacha Blvd, Spring Vallev, CA 91978WIRE FRAUD AND ELECTRONIC FUNDS TRANSFERS ADVISORY: ("Property"). The ability to communicate and conduct business electronically is a convenience and reality in nearly all parts of our lives. At the same time, it has provided hackers and scammers new opportunities for their criminal activity. Many businesses have been victimized and the real estate business is no exception. While wiring or electronically transferring funds is a welcome convenience, we all need to exercise extreme caution. Emails attempting to induce fraudulent wire transfers have been received and have appeared to be legitimate. Reports indicate that some hackers have been able to intercept emailed transfer instructions, obtain account information and, by altering some of the data, redirect the funds to a different account. It also appears that some hackers were able to provide false phone numbers for verifying the wiring or funds transfer instructions. In those cases, the victim called the number provided to confirm the instructions, and then unwittingly authorized a transfer to somewhere or someone other than the intended recipient. ACCORDINGLY, YOU ARE ADVISED: 1.Obtain phone numbers and account numbers only from Escrow Officers, Property Managers, orLandlords at the beginning of the transaction.2.DO NOT EVER WIRE OR ELECTRONICALLY TRANSFER FUNDS PRIOR TO CALLING TOCONFIRM THE TRANSFER INSTRUCTIONS. ONLY USE A PHONE NUMBER YOU WEREPROVIDED PREVIOUSLY. Do not use any different phone number or account number includedin any emailed transfer instructions.3.Orally confirm the transfer instruction is legitimate and confirm the bank routing number,account numbers and other codes before taking steps to transfer the funds.4.Avoid sending personal information in emails or texts. Provide such information in person orover the telephone directly to the Escrow Officer, Property Manager, or Landlord.5.Take steps to secure the system you are using with your email account. These steps includecreating strong passwords, using secure WiFi, and not using free services. If you believe you have received questionable or suspicious wire or funds transfer instructions, immediately notify your bank, and the other party, and the Escrow Office, Landlord, or Property Manager. The sources below, as well as others, can also provide information: Federal Bureau of Investigation: https://www.fbi.gov/; the FBl's IC3 at www.ic3.gov; or 310-477-6565 National White Collar Crime Center: http://www.nw3c.org/ On Guard Online: https://www.onguardonline.gov/ NOTE: There are existing alternatives to electronic and wired fund transfers such as cashier's checks. By signing below, the undersigned acknowledge that each has read, understands and has received a copy of this tiofuf�yi:Jnd Electronic Funds Transfer Advisory. I,....,..,_ d1 _,.(r\ 8/27/2020 Buyer/Tenant �k Dan Miller Date _____ _ Buyer/Tenant o13noEA•s21•c• Date Seller/Landlord :;z..�z OWD, Jose Martinez, General Manager Date --'1---z--'"2-o-- Seller/Landlord ______________________________ Date _____ _ <02016-2017, California Association of REALTORS®. Inc. United States copyright law (Title 17 U.S. Code) forbids the unauthorized distribution, display and reproduction of this form. or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS®. NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE. CONSULT AN APPROPRIATE PROFESSIONAL. This form is made available to real estate professionals through an agreement with or purchase from the California Association of REAL TORS®. It is not intended to identify the user as a REAL TOR®. REALTOR® is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REAL TORS® who subscribe to its Code of Ethics. Published and Distributed by: REAL ESTATE BUSINESS SERVICES. LLC. a subsidiary of the California Association of REAL TORS® _ 525 South Virgil Avenue, Los Angeles. Calfomia 90020 WFA REVISED 12/17 (PAGE 1 OF 1) WIRE FRAUD AND ELECTRONIC FUNDS TRANSFER ADVISORY WFA PAGE 1 OF 1 Pacific Coast Commtrc:ial, 10721 Trttn:1 S1rtt1,Sui1c 200 S:tn Oitgo CA 92131 Phone: 619A69.J600 Fax: 858.560.5604 Vinc:c Pro\·tnzano Produced with Lone Wolf Transactions (ZJpForm Edition) 231 Shearson Cr Cambndge. Ontano. Canada N1T 1J5 www.twolf com Jnmath:t Ulvd • DocuSign Envelope ID: 73F78F9D-5428-41AC-9A7C-F41 B0391 EF96 ,-� CAL IF ORN I A VACANT LAND PURCHASE AGREEMENT � � ASSOC I AT ION AND JOINT ESCROW INSTRUCTIONS � OF RE A LT ORS 11, (C.A.R. Form VLPA, Revised 12/18) Date Prepared: August 24, 2020 1. OFFER: A.THIS IS AN OFFER FROM Dan Miller ("Buyer"),B.THE REAL PROPERTY to be acquired is Jamacha Blvd , situated inSpring Valley (City), San Diego (County), California, 91978 (Zip Code), Assessor's Parcel No. 505-672-20-00 ("Property").Further Described As an approximate 10,000 square feet of vacant land ( a portion of APN# 505-672·19-00 and all of APN# 505-672-20-00) C.THE PURCHASE PRICE offered is .=0:..:.n:..:ec.:Hc.;.u=.:n:..:.d=.:rc.:e'""d:...:E=.:i""g.:..:hc=-ty,_--=-T-=-=w-=o .. T'"'h�oc.:u=-=s'-"a""'n'-"d'------------------­ ==--=-==-==-==c=-=::-==--:--,.,..----,---,------------,----,--,--...,.--Dollars $ 182,000.00 D.CLOSE OF ESCROW shall occur on LJ----,,---,----,-,--,------(date) (or[½i 20 Days After Acceptance). E.Buyer and Seller are referred to herein as the "Parties." Brokers are not Parties to this Agreement.2.AGENCY: A. DISCLOSURE: The Parties each acknowledge receipt of a "Disclosure Regarding Real Estate Agency Relationships"(C.A.R. Form AD). B. CONFIRMATION: The following agency relationships are confirmed for this transaction:Seller's Brokerage Firm Pacific Coast Commercial License Number 01209930Is the broker of (check one): LJ the seller; or [ii both the buyer and seller. (dual agent)Seller's Agent Vince Provenzano License Number 00780182 Is (check one): LJ the Seller's Agent. (salesperson or broker associate) [ii both the Buyer's and Seller's Agent. (dual agent) Buyer's Brokerage Firm Pacific Coast Commercial Is the broker of (check one): LJ the buyer; or [ii both the buyer and seller. (dual agent) License Number ----'0'--'1=2=0-"-99"'3�0�_ Buyer's Agent Vince Provenzano License Number 00780182 Is (check one): LJ the Buyer's Agent. (salesperson or broker associate) [ii both the Buyer's and Seller's Agent. (dual agent) C. POTENTIALLY COMPETING BUYERS AND SELLERS: The Parties each acknowledge receipt of a lil "Possible Representationof More than One Buyer or Seller -Disclosure and Consent " (C.A.R. Form PRBS). 3.FINANCE TERMS: Buyer represents that funds will be good when deposited with Escrow Holder. A. INITIAL DEPOSIT: Deposit shall be in the amount of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ____ 2_0�,o_o_o._o_o(1) Buyer Direct Deposit: B�er shall deliver deposit directly to Escrow Holder by electronic fundstransfer, LJ cashier's check, LJ personal check, LJ other _________ within 3 business daysafter Acceptance (or ___________________________ � OR (2) D Buyer Deposit with Agent Buyer has given the deposit by personal check ( or ______ ) to the agent submitting the offer (or to ---------,----,------), made payable to--,-.,.....-c=-----,-,.......,...-,----,...,...,...--c--. The deposit shall be held uncashed until Acceptance and then deposited with Escrow Holder within 3 business days after Acceptance (or _____________ ).Deposit checks given to agent shall be an original signed check and not a copy. (Note: Initial and increased deposits checks received by agent shall be recorded in Broker's trust fund log.) B. INCREASED DEPOSIT: Buyer shall deposit with Escrow Holder an increased deposit in the amount of ... $ _______ _within __ Days After Acceptance (or --------------------,----)-If the Parties agree to liquidated damages in this Agreement, they also agree to incorporate the increaseddeposit into the liquidated damages amount in a separate liquidated damages clause (C.A.R. Form RID)at the time the increased deposit is delivered to Escrow Holder. C. ALL CASH OFFER: No loan is needed to purchase the Property. This offer is NOT contingent onBuyer obtaining a loan. Written verification of sufficient funds to close this transaction IS ATT ACHED tothis offer or D Buyer shall, within 3 (or __ ) Days After Acceptance, Deliver to Seller such verification. D. LOAN(S): (1) FIRST LOAN: in the amount of ....................................................... $ ______ _ This loan will be conventional financing OR D FH A, D VA, D Seller financing (C.A.R. Form SF A),0 assumed financing (C.A.R. Form AF A), 0 subject to financing, 0 Other-----,---,-..,..,....-,-. Thisloan shall be at a fixed rate not to exceed ___ %or, 0 an adjustable rate loan with initial rate not to exceed ___ %. Regardless of the type of loan, Buyer shall pay points not to exceed ___ % of the loan amount. (2) 0 SECOND LOAN in the amount of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ______ _This loan will be conventional financing OR O Seller financing (C.A.R. Form SF A), Oassumed financing (C.A.R. Form AF A), 0 subject to financing O Other ______ . This loan shall be ata fixed rate not to exceed __ % or, Dan adjustable rate loan with initial rate not to exceed __ %. Regardless of the type of loan, Buyer shall pay points not to exceed __ % of the loan amount. (3)FHA/VA: For any FH A or VA loan specified in 30(1), Buyer has 17 (or ) Days After Acceptance to Deliver to Seller written notice (C.A.R. Form FVA) of any lender-required repairs or costs that Buyer requests Seller y for or otherwise correct. Seller has no obligation to pay or satisfy lender requirements unless agr d · T . A FHANA amendatory clause (C.A.R. Form FVAC) shall be a part of this transaction. Buyer's Initials ( ( -'==--_,Appro s Form Seller's Initials ( A$ ) (<C> 2018, California A ORS®, Inc. 7°" VLPA REVISED 12118 (PAGE 1 OF 11) By:_6-=t--,:;__-VACANT LAND PURCHA�E AG Paciric Coas1 Commercial. 10721 Trttna Slrttl. Suite 200 San Diego CA 92131 Phone: 619.469.3600 Fax: 858.560.5604 Viner Pro,·rnuno Produced with Lone \Nolf Transactions (zipForm Edition) 231 Shearson Cr Cambridge, Ontano, Canada N1T 1J5 www.lwolf.com Jamachn Uh•d • DocuSign Envelope ID: 73F78F9D-5428-41AC-9A7C-F4180391EF96 Property Address: Jamacha Blvd, Spring Valley. CA 91978 Date: August 24, 2020 E. ADDITIONAL FINANCING TERMS: Paragraph 3(JJ(4)-Cash Sale with no loan contingencyFull Deposit is Non-Refundable immediately with exception of Seller Breach F.BALANCE OF DOWN PAYMENT OR PURCHASE PRICE in the amount of ...................... $ ____ 1_6_2�,o_o_o._o_o to be deposited with Escrow Holder pursuant to Escrow Holder instructions. G.PURCHASE PRICE (TOTAL): .......................................................... $ 182,000.00 H.VERIFICATION OF DOWN PAYMENT AND CLOSING COSTS: Buyer (or Buyer's lender or loan broker pursuant to paragraph3J(1)) shall, within 3 (or ) Days After Acceptance, Deliver to Seller written verification of Buyer's down payment and closing costs. ( 0 Verification attached.) I.APPRAISAL CONTINGENCY AND REMOVAL: This Agreement is (or � is NOT) contingent upon a written appraisal of theProperty by a licensed or certified appraiser at no less than the purchase price. Buyer shall, as specified in paragraph 198(3), in writing, remove the appraisal contingency or cancel this Agreement within 17 (or ) Days After Acceptance. J.LOAN TERMS:-- (1) LOAN APPLICATIONS: Within 3 (or ) Days After Acceptance, Buyer shall Deliver to Seller a letter from Buyer's lenderor loan broker stating that, based on areview of Buyer's written application and credit report, Buyer is prequalified or preapproved for any NEW loan specified in paragraph 3D. If any loan specified in paragraph 3D is an adjustable rate loan, the prequalification or preapproval letter shall be based on the qualifying rate, not the initial loan rate. ( 0 Letter attached.) (2) LOAN CONTINGENCY: Buyer shall act diligently and in good faith to obtain the designated loan(s). Buyer's qualification for theloan(s) specified above is a contingency of this Agreement unless otherwise agreed in writing. If there is no appraisal contingency or the appraisal contingency has been waived or removed, then failure of the Property to appraise at the purchase price does not entitle Buyer to exercise the cancellation right pursuant to the loan contingency if Buyer is otherwise qualified for the specified loan. Buyer's contractual obligations regarding deposit, balance of down payment and closing costs are not contingencies of this Agreement. (3) LOAN CONTINGENCY REMOVAL: Within 21 (or _) Days After Acceptance, Buyer shall, as specified in paragraph 19, in writing, remove the loan contingency or cancel this Agreement. If there is an appraisal contingency, removal of the loan contingency shall not be deemed removal of the a praisal contingency. (4) NO LOAN CONTINGENCY: Obtaining any loan specified above is NOT a contingency of this Agreement. If Buyer does not obtain the loan and as a result Buyer does not purchase the Property, Seller may be entitled to Buyer's deposit or other legal remedies. (5) LENDER LIMITS ON BUYER CREDITS: Any credit to Buyer, from any source, for closing or other costs that is agreed to by the Parties ("Contractual Credit") shall be disclosed to Buyer's lender. If the total credit allowed by Buyer's lender ("Lender Allowable Credit") is less than the Contractual Credit, then (i) the Contractual Credit shall be reduced to the Lender Allowable Credit, and (ii) in the absence of a separate written agreement between the Parties, there shall be no automatic adjustment to the purchase price to make up for the difference between the Contractual Credit and the Lender Allowable Credit. K. BUYER STATED FINANCING: Seller is relying on Buyer's representation of the type of financing specified (including but not limited to, as applicable, all cash, amount of down payment, or contingent or non-contingent loan). Seller has agreed to a specific closing date, purchase price and to sell to Buyer in reliance on Buyer's covenant concerning financing. Buyer shall pursue the financing specified in this Agreement. Seller has no obligation to cooperate with Buyer's efforts to obtain anyfinancing other than that specified in the Agreement and the availability of any such alternate financing does not excuse Buyer from the obligation to purchase the Property and close escrow as specified in this Agreement. L.SELLER FINANCING: The following terms (or O the terms specified in the attached Seller Financing Addendum) (C.A.R. FormSFA) apply ONLY to financing extended by Seller under this Agreement. (1) BUYER'S CREDIT-WORTHINESS: Buyer authorizes Seller and/or Brokers to obtain, at Buyer's expense, a copy of Buyer'scredit report. Within 7 (or ____ ) Days After Acceptance, Buyer shall provide any supporting documentation reasonably requested by Seller. (2) TERMS: Buyer's promissory note, deed of trust and other documents as appropriate shall incorporate and implement the followingadditional terms: (i) the maximum interest rate specified in paragraph 3D shall be the actual fixed interest rate for Seller financing; (ii) deed of trust shall contain a REQUEST FOR NOTICE OF DEFAULT on senior loans; (iii) Buyer shall sign and pay for a REQUEST FOR NOTICE OF DELINQUENCY prior to Close Of Escrow and at any future time if requested by Seller; (iv) note and deed of trust shall contain an acceleration clause making the loan due, when permitted by law and at Seller's option, upon the sale or transfer of the Property or any interest in it; (v) note shall contain a late charge of 6% of the installment due (or ___ ) if the installment is not received within 10 days of the date due; (vi) title insurance coverage in the form of a joint protection policy shall be provided insuring Seller's deed of trust interest in the Property (any increased cost over owner's policy shall be paid by Buyer); and (vii) tax service shall be obtained and paid for by Buyer to notify Seller if property taxes have not been paid. (3) ADDED, DELETED OR SUBSTITUTED BUYERS: The addition, deletion or substitution of any person or entity under this Agreement or to title prior to Close Of Escrow shall require Seller's written consent. Seller may grant or withhold consent in Seller's sole discretion. Any additional or substituted person or entity shall, if requested by Seller, submit to Seller the same documentation as required for the original named Buyer. Seller and/or Brokers may obtain a credit report, at Buyer's expense, on any such person or entity. M. ASSUMED OR "SUBJECT TO" FINANCING: Seller represents that Seller is not delinquent on any payments due on any loans. Seller shall, within the time specified in paragraph 19, provide Copies of all applicable notes and deeds of trust, loan balances dscurrent interest rates to Buyer. Buyer shall then, as specified in paragraph 198(3), remove this contingency or Appr fl/ , Buyer's Initials ( ,-..;......,.-+-� ,---� By:_�c;,___ Seller's Initials ( � ( ---� @ VLPA REVISE�l-9f'tR-1-P1�1--'JOF 11) Gen ralCounsel VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 2 OF 11) '::'.,.�,-:' Produced wuh Lone Wolf Transactions (z,pFoon Edition) 231 Shearson Cr. Cambndge. Ontano. Canada NH 1J5 www lwolf com Jamar.hn. Blvd • DocuSign Envelope ID: 73F78F9D-5428-41AC-9A7C-F41 B0391 EF96 Property Address: Jamacha Blvd, Spring Valley, CA 91978 Date: August 24, 2020 cancel th is Agreement. D ifferences between estimated and actual loan balances shall be adjusted at Close Of Escrow by cash down payment. Impound accounts, if any, shall be assigned and charged to Buyer and credited to Seller. Seller is advised that Buyer's assumption of an existing loan may not release Seller from l iability on that loan. If th is is an assumption of a VA Loan, the sale is contingent upon Seller being prov ided a release of liability and substitut ion of eligib ility, unless otherwise agreed in writ ing. If the Property is acqu ired subject to an existing loan, Buyer and Seller are advised to consult w ith legal counsel regarding the ab ility of an exist ing lender to call the loan due, and the consequences thereof. 4.SALE OF BUYER'S PROPERTY: A.This Agreement and Buyer's ab ility to obtain financing are NOT contingent upon the sale of any property owned by Buyer. OR B. D This Agreement and Buyer's abil ity to obta in financ ing are cont ingent upon the sale of property owned by Buyer as spec ified in the attached addendum (C.A.R. F orm COP). 5.0 MANUFACTURED HOME PURCHASE: The purchase of the Property is contingent upon Buyer acqu iring a personal property manufactured home to be placed on the Property after Close Of Escrow. Buyer O has O has not entered into a contract for thepurchase of a personal property manufactured home. With in the time spec ified in paragraph 19, Buyer shall remove th iscontingency or cancel th is Agreement, (orO th is contingency shall rema in in effect until the Close Of Escrow of the Property).6.0 CONSTRUCTION LOAN FINANCING: The purchase of the Property is contingent upon Buyer obta ining a construction loan. A draw from the construction loan O w ill C w ill not be used to finance the Property. With in the time specified in paragraph 19, Buyershall remove th is cont ingency or cancel this Agreement ( or D this contingency shall rema in in effect unt il Close Of Escrow of theProperty).7.ADDENDA AND ADVISORIES: A.ADDENDA: -----------------'=□=-A:...:.d:..:d::..::e:.:..:nc::d=.:um.:..:....:.:# __ _.,(C.::..:.c..A=.R_;,;·:...:.F...::oc:.,;rm..:..:....:...A=D""M"-') _____ _ 0 Back Up Offer Addendum (C.A.R. Form BUO) D Court Confirmat ion Addendum (C.A.R. Form CCA) D Sept ic, Well and Property Monument Addendum (C.A.R. F orm SWPI) 0 Short Sale Addendum (C.A. R. Form SSA) 0 Other B.BUYER AND SELLER ADVISORIES: � Buyer's Vacant Land Additional Inspect ion Adv isory (C.A.R. F orm BVLIA)D Probate Advisory (C.A.R. Form PA) D Statew ide Buyer and Seller Advisory (C.A.R. Form SBSA) □Trust Advisory (C.A.R. Form TA)0 REO Advisory (C.A.R. F orm REO) 0 Short Sale Information and Advisory (C.A.R. F orm SSIA)� Other Seller Vacant Land Questionnaire 8.OTHER TERMS: A. Sale Subject to Otay Water District Board approval, Close of Escrow three (3) days thereafterB.Property being sold "As-ls" C.Buyer is now in possession of all Due Diligence materials 9.ALLOCATION OF COSTS A.INSPECTIONS, REPORTS AND CERTIFICATES: Unless otherw ise agreed, in writing, th is paragraph only determ ines who isto pay for the inspection, test, certificate or service ("Report") mentioned; it does not determine who is to pay for any workrecommended or identified in the Report. (1)0 Buyer� Seller shall pay for a natural hazard zone disclosure report, includ ing tax O env ironmental D Other: ____ _�--�--------prepared by ___________________________ _(2) LJ Buyer 1J Seller shall pay for the following Report ________________________ _g_cepared by :--:------,---,----,-----------------------------------(3) LJ Buyer O Seller shall pay for the follow ing Report _________________________ _ prepared by _,,.,--�-------------------------------------8.ESCROW AND TITLE: (1)(a) � Buyer Seller shall pay escrow fee .=S:.c:p:'-:'-li=-t 5=-:0::e.'/=-50=-------------------------(b)Escrow Holder shall be ,,,F.:..:,ir=s.:..t A:....:..:.,m.:..:e:,:..r�icc.=ac:..:nc..;T'-'i�tl=-e--.,----,-----,-----,,c-----,-,.......,.-,--,------,--------:--:--------(c)The Parties shall, with in 5 (or ) Days After rece ipt, sign and return Escrow Holder's general prov isions. (2)(a) D Buyer Seller shall pay for owner's t itle insurance policy specified in paragraph 18E ___________ _(b)Owner's title pol icy to be issued by First American Title -Mark McDonald(Buyer shall pay for any title insurance pol icy insuring Buyer's lender, unless otherwise agreed in writ ing.) C.OTHER COSTS:(1) § Buyer Seller shall pay County transfer tax or fee if applicable(2)Buyer Seller shall pay City transfer tax or fee,----=...,..-::-...,...,,..-----,-------------------------(3)Buyer Seller shall pay Homeowners' Association ("HOA") transfer fee ------,,---,---------,-,c--,--------- (4) Seller shall pay HOA fees for preparing all documents requ ired to be del ivered by Civ il Code §4525.(5)Buyer to � y for any HOA cert ificat ion fee. (6) § Buyer Seller shall pay HOA fees for preparing all documents other than those required by C ivil Code §4525. (7) Buyer Seller shall pay for any private transfer fee _______________________ _(8)Buyer Seller shall pay for ______________________________ _(9)Buyer Seller shall pay for1 0. CLOS ING AND POSSESS ION: Posse_s_s.,...io_n_s..,...h-a,.,..11 .,...be___,,d....,el,,...iv-e-re-d:--:t-o-=B=-u-ye_r_: ...,,( i.,...) .,..0-,--at-=6:--:P=:M:-:--o-r -=_-=_-=._-...,,-=;-----,-O=rA-:-M/:-:-:--,O--=p--=-M:-:-)-o-n....,t=-he---,da-,t:-e -o"""'f-=c::--10se Of Escrow; (i i) D no later than _ calendar days after Close Of Escrow; or (iii) D at __ DAM/ D PM on ---,-----,--The Prope I be unoccup ied, unless otherwise agreed in writ ing. Seller shall provide keys and/or means to operate all Property lac s. I is located in a common interest subd ivision, Buyer may be requ ired to�a epos it to the Homeowners' Buyer's Initials ( ( Sellers Initials ( ( ___ __, � VLPA ISED 1 11) � VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 3 OF 11) •��Produced with Lone Wolf Transactions (z1pFonn Ed1t1on) 231 Shearson Cr. Cambndge, Ontano, Canada N1T 1J5 www.lwotf.com Jamacha Blvd - DocuSign Envelope ID: 73F78F9D-5428-41AC-9A7C-F41 B0391 EF96 Property Address: Jamacha Blvd, Spring Valley, CA 91978 Date: August 24, 2020 Association ("HOA') to obtain keys to accessible HOA facilities. 11. ITEMS INCLUDED IN AND EXCLUDED FROM SALE: A. NOTE TO BUYER AND SELLER: Items listed as included or excluded in the MLS, flyers or marketing materials are not included in the purchase price or excluded from the sale unless specified in 11 B or C. B.ITEMS INCLUDED IN SALE: (1) All EXISTING fixtures and fittings that are attached to the Property; (2) The following items: ______________________________________ _ (3)Seller represents that all items included in the purchase price, unless otherwise specified, are owned by Seller. (4) All items included shall be transferred free of liens and without Seller warranty. C.ITEMS EXCLUDED FROM SALE: ______________________________ _ 12. STATUTORY AND OTHER DISCLOSURES AND CANCELLATION RIGHTS: A. NATURAL AND ENVIRONMENTAL HAZARD DISCLOSURES AND OTHER BOOKLETS: Within the time specified in paragraph 19A,Seller shall, if required by Law: (i) Deliver to Buyer earthquake guide(s) (and questionnaire), environmental hazards booklet; (ii)disclose if the Property is located in a Special Flood Hazard Area; Potential Flooding (Inundation) Area; Very High Fire Hazard Zone;State Fire Responsibility Area; Earthquake Fault Zone; and Seismic Hazard Zone; and (iii) disclose any other zone as required by Lawand provide any other information required for those zones. B.WITHHOLDING TAXES: Within the time specified in paragraph 19A, to avoid required withholding, Seller shall Deliver to Buyer orqualified substitute, an affidavit sufficient to comply with federal (FIRPTA) and California withholding Law (C.A.R. Form AS or QS). C.MEGAN'S LAW DATABASE DISCLOSURE: Notice: Pursuant to Section 290.46 of the Penal Code, information about specifiedregistered sex offenders is made available to the public via an Internet Web site maintained by the Department of Justice atwww.meganslaw.ca.gov. Depending on an offender's criminal history, this information will include either the address at which the offender resides or the community of residence and ZIP Code in which he or she resides. (Neither Seller nor Brokers are required tocheck this website. If Buyer wants further information, Broker recommends that Buyer obtain information from this website duringBuyer's inspection contingency period. Brokers do not have expertise in this area.) D. NOTICE REGARDING GAS AND HAZARDOUS LIQUID TRANSMISSION PIPELINES: This notice is being provided simply to informyou that information about the general location of gas and hazardous liquid transmission pipelines is available to the public via theNational Pipeline Mapping System (NPMS) Internet Web site maintained by the United States Department of Transportation athttp:/lwww.npms.phmsa.dot.gov/. To seek further information about possible transmission pipelines near the Property, you may contact your local gas utility or other pipeline operators in the area. Contact information for pipeline operators is searchable by ZIP Code and county on the NPMS Internet Web site. E.CONDOMINIUM/PLANNED DEVELOPMENT DISCLOSURES: (1) SELLER HAS: 7 (or ) Days After Acceptance to disclose to Buyer whether the Property is a condominium, or is located in a planned development or other common interest subdivision (C.A.R. Form VLQ). (2) If the Property is a condominium or is located in a planned development or other common interest subdivision, Seller has 3 (or_) Days After Acceptance to request from the HOA (C.A.R. Form HOA1): (i) Copies of any documents required by Law; (ii) disclosure of any pending or anticipated claim or litigation by or against the HOA; (iii) a statement containing the location and number ofdesignated parking and storage spaces; (iv) Copies of the most recent 12 months of HOA minutes for regular and special meetings;and (v) the names and contact information of all HOAs governing the Property (collectively, "Cl Disclosures"). Seller shall itemize and Deliver to Buyer all Cl Disclosures received from the HOA and any Cl Disclosures in Seller's possession. Buyer's approval of ClDisclosures is a contingency of this Agreement as specified in paragraph 198(3). The Party specified in paragraph 9, as directed byescrow, shall deposit funds into escrow or direct to HOA or management company to pay for any of the above.13.SELLER DOCUMENTATION AND ADDITIONAL DISCLOSURE: A. Within the time specified in paragraph 19, if Seller has actual knowledge, Seller shall provide to Buyer, in writing, the following information: (1) LEGAL PROCEEDINGS: Any lawsuits by or against Seller, threatening or affecting the Property, including any lawsuits alleging a defect or deficiency in the Property or common areas, or any known notices of abatement or citations filed or issued against the Property. (2)AGRICULTURAL USE: Whether the Property is subject to restrictions for agricultural use pursuant to the Williamson Act (Government Code §§51200-51295). (3) DEED RESTRICTIONS: Any deed restrictions or obligations. (4) FARM USE: Whether the Property is in, or adjacent to, an area with Right to Farm rights (Civil Code §3482.5 and §3482.6). (5) ENDANGERED SPECIES: Presence of endangered, threatened, 'candidate' species, or wetlands on the Property. (6) ENVIRONMENTAL HAZARDS: Any substances, materials, or products that may be an environmental hazard including, but not limited to, asbestos, formaldehyde, radon gas, lead-based paint, fuel or chemical storage tanks, and contaminated soil or water on the Property. (7) COMMON WALLS: Any features of the Property shared in common with adjoining landowners, such as walls, fences, roads, and driveways, and agriculture and domestic wells whose use or responsibility for maintenance may have an effect on the Property.(8) LANDLOCKED: The absence of legal or physical access to the Property. (9) EASEMENTS/ENCROACHMENTS: Any encroachments, easements or similar matters that may affect the Property.(10)SOIL FILL: Any fill (compacted or otherwise), or abandoned mining operations on the Property.(11)SOIL PROBLEMS: Any slippage, sliding, flooding, drainage, grading, or other soil problems. (12) EARTHQUAKE DAMAGE: Major damage to the Property or any of the structures from fire, earthquake, floods, or landslides.(13) ZONING ISSUES: Any zoning violations, non-conforming uses, or violations of "setback" requirements.(14) NEIGHBORHOOD PROBLEMS: Any neighborhood noise problems, or other nuisances. B. RENTAL AND SERVICE AGREEMENTS: Within the time specified in paragraph 19, Seller shall make available to Buyer for inspectionand review, all current leases, rental agreements, service contracts and other related agreements, licenses, and permits pertaining to the operation or use of the Property. C.0 TENANT ESTOPPEL CERTIFICATES: Within the time specified in paragraph 19, Seller shall deliver to Buyer tenant estoppelcertificates (C.A.R. Form TEC) completed by Seller or Seller's agent, and signed by tenants, acknowledging: (i) that tenants' rental or lease agr s are unmodified and in full force and effect (or if modified, stating all such modifications); (ii) that no lessor defaultsexist; and ii' s ti the amount of any prepaid rent or security deposit.//,/ �Buyer's Initials ( l���mr.ici�.-.,.----� Seller's Initials ( � ) ( ___ __, 1.:J'VLPA REVISED 1 11) •-"""•"'Ap VACANT LANO PURCHASE AGREEMENT (VLPA PAGE 4 OF 11)"'""""'�N Produced with Lone Wolf Transactions (zipForm Edition) 231 Shearson Cr. Cambridge. Ontario. Canada N1T 1J5 www.lwolf.com Jamadrn lllvd • DocuSign Envelope ID: 73F78F9D-5428-41 AC-9A7C-F41 B0391 EF96 Property Address: Jamacha Blvd, Spring Valley. CA 91978 Date: August 24, 2020D.MELLO-ROOS TAX; 1915 BOND ACT: Within the time specified in paragraph 19, Seller shall: (i} make a good faith effort to obtain a notice from any local agencies that levy a special tax or assessment on the Property (or, if allowed, substantially equivalent notice}, pursuant to the Mello-Roos Community Facilities Act, and Improvement Bond Act of 1915, and (ii} promptly deliver to Buyer any such notice obtained. E.SELLER VACANT LAND QUESTIONNAIRE: Seller shall, within the time specified in paragraph 19, complete and provide Buyer with aSeller Vacant Land Questionnaire (CAR. Form VLQ).14.SUBSEQUENT DISCLOSURES: In the event Seller, prior to Close Of Escrow, becomes aware of adverse conditions materially affectingthe Property, or any material inaccuracy in disclosures, information or representations previously provided to Buyer of which Buyer is otherwise unaware, Seller shall promptly provide a subsequent or amended disclosure or notice, in writing, covering those items. However,a subsequent or amended disclosure shall not be required for conditions and material inaccuracies disclosed in reports orderedand paid for by Buyer. 15. CHANGES DURING ESCROW:A.Prior to Close Of Escrow, Seller may engage in the following acts, ("Proposed Changes"}, subject to Buyer's rights in paragraph 15B: (i}rent or lease any part of the premises; (ii} alter, modify or extend any existing rental or lease agreement; (iii} enter into, alter, modify or extend any service contract(s); or (iv) change the status of the condition of the Property. B.At leastr(or 2 } Days prior to any Proposed Changes, Seller shall give written notice to Buyer of such Proposed Changes. Within 5(or_) Days After receipt of such notice, Buyer, in writing, may give Seller notice of Buyer's objection to the Proposed Changes, in which case Seller shall not make the Proposed Changes.16. CONDITION OF PROPERTY: Unless otherwise agreed in writing: (i} the Property is sold (a) "AS-IS" in its PRESENT physical condition asof the date of Acceptance and (b} subject to Buyer's Investigation rights; (ii} the Property, including pool, spa, landscaping and grounds, isto be maintained in substantially the same condition as on the date of Acceptance; and (iii} all debris and personal property not included in the sale shall be removed by Close Of Escrow.A.Seller shall, within the time specified in paragraph 19A, DISCLOSE KNOWN MATERIAL FACTS AND DEFECTS affecting the Property,including known insurance claims within the past five years, and make any and all other disclosures required by law.B.Buyer has the right to conduct Buyer Investigations of the property and, as specified in paragraph 19B, based upon informationdiscovered in those investigations: (i) cancel this Agreement; or (ii) request that Seller make Repairs or take other action.C. Buyer is strongly advised to conduct investigations of the entire Property in order to determine its present condition. Sellermay not be aware of all defects affecting the Property or other factors that Buyer considers important. Property improvementsmay not be built according to code, in compliance with current Law, or have had permits issued. 17. BUYER'S INVESTIGATION OF PROPERTY AND MATTERS AFFECTING PROPERTY:A. Buyer's acceptance of the condition of, and any other matter affecting the Property, is a contingency of this Agreement as specified in this paragraph and paragraph 19B. Within the time specified in paragraph 198(1}, Buyer shall have the right, at Buyer's expense unlessotherwise agreed, to conduct inspections, investigations, tests, surveys and other studies ("Buyer Investigations"}, including, but notlimited to, the right to: (i} inspect for lead-based paint and other lead-based paint hazards; (ii) inspect for wood destroying pests andorganisms; (iii} review the registered sex offender database; (iv} confirm the insurability of Buyer and the Property; and (v} satisfyBuyer as to any matter specified in the attached Buyer's Inspection Advisory (CAR. Form BIA). Without Seller's prior written consent,Buyer shall neither make nor cause to be made: (i} invasive or destructive Buyer Investigations except for minimally invasive testing; or (ii) inspections by any governmental building or zoning inspector or government employee, unless required by Law.B.Seller shall make the Property available for all Buyer Investigations. Buyer shall (i} as specified in paragraph 19B, complete BuyerInvestigations and, either remove the contingency or cancel this Agreement, and (ii) give Seller, at no cost, complete Copies of all Investigation reports obtained by Buyer, which obligation shall survive the termination of this Agreement.C.Buyer indemnity and Seller protection for entry upon property: Buyer shall: (i} keep the Property free and clear of liens; (ii} repairall damage arising from Buyer Investigations; and (iii} indemnify and hold Seller harmless from all resulting liability, claims, demands,damages and costs of Buyer's Investigations. Buyer shall carry, or Buyer shall require anyone acting on Buyer's behalf to carry, policiesof liability, workers' compensation and other applicable insurance, defending and protecting Seller from liability for any injuries topersons or property occurring during any Buyer Investigations or work done on the Property at Buyer's direction prior to Close Of Escrow. Seller is advised that certain protections may be afforded Seller by recording a "Notice of Non-responsibility" (CAR. FormNNR} for Buyer Investigations and work done on the Property at Buyer's direction. Buyer's obligations under this paragraph shallsurvive the termination or cancellation of this Agreement and Close Of Escrow.D. BUYER IS STRONGLY ADVISED TO INVESTIGATE THE CONDITION AND SUITABILITY OF ALL ASPECTS OF THE PROPERTYAND ALL MATTERS AFFECTING THE VALUE OR DESIRABILITY OF THE PROPERTY, INCLUDING BUT NOT LIMITED TO, THEITEMS SPECIFIED BELOW. IF BUYER DOES NOT EXERCISE THESE RIGHTS, BUYER IS ACTING AGAINST THE ADVICE OFBROKERS. BUYER UNDERSTANDS THAT ALTHOUGH CONDITIONS ARE OFTEN DIFFICULT TO LOCATE AND DISCOVER,ALL REAL PROPERTY CONTAINS CONDITIONS THAT ARE NOT READILY APPARENT AND THAT MAY AFFECT THE VALUEOR DESIRABILITY OF THE PROPERTY. BUYER AND SELLER ARE AWARE THAT BROKERS DO NOT GUARANTEE, AND IN NO WAY ASSUME RESPONSIBILITY FOR, THE CONDITION OF THE PROPERTY. BROKERS HAVE NOT AND WILL NOT VERIFY ANY OF THE ITEMS IN THIS PARAGRAPH 17, UNLESS OTHERWISE AGREED IN WRITING.E. SIZE, LINES, ACCESS AND BOUNDARIES: Lot size, property lines, legal or physical access and boundaries including features of theProperty shared in common with adjoining landowners, such as walls, fences, roads and driveways, whose use or responsibility for maintenance may have an effect on the Property and any encroachments, easements or similar matters that may affect the Property.(Fences, hedges, walls and other natural or constructed barriers or markers do not necessarily identify true Property boundaries.Property lines may be verified by survey.} (Unless otherwise specified in writing, any numerical statements by Brokers regarding lot sizeare APPROXIMATIONS ONLY, which have not been and will not be verified, and should not be relied upon by Buyer.)F.ZONING AND LAND USE: Past, present, or proposed laws, ordinances, referendums, initiatives, votes, applications and permitsaffecting the current use of the Property, future development, zoning, building, size, governmental permits and inspections. Any zoningviolations, non-conforming uses, or violations of "setback" requirements. (Buyer should also investigate whether these matters affectBuyer's intended use of the Property.)G. UTILITIES sSERVICES: Availability, costs, restrictions and location of utilities and services, including but not limited to, sewerage, leach lines, water, electricity, gas, telephone, cable TV and drainage. , A J -1-• ...,-,c, .... .,..,..""..,. .... ..,--r.J..,....,,....,.... Seller's Initials ( /P ) ( 5 OF 11) VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 5 OF 11) Produced w,th Lone Wolf Transaclions (zipForm Edition) 231 Shearson Cr. Cambridge, Ontano, Canada NH 1J5 www.lwolf.com General Counsel .Janrn<'lm IJl,.,J - OocuSign Envelope 10: 73F78F90-5428-41AC-9A7C-F41 B0391 EF96 Property Address: Jamacha Blvd, Spring Vallev. CA 91978 Date: August 24, 2020 H.ENVIRONMENTAL HAZARDS: Potential environmental hazards, including, but not limited to, asbestos, lead-based paint and otherlead contamination, radon, methane, other gases, fuel, oil or chemical storage tanks, contaminated soil or water, hazardous waste,waste disposal sites, electromagnetic fields, nuclear sources, and other substances, including mold (airborne, toxic or otherwise),fungus or similar contaminant, materials, products or conditions.I. GEOLOGIC CONDITIONS: Geologic/seismic conditions, soil and terrain stability, suitability and drainage including any slippage,sliding, flooding, drainage, grading, fill (compacted or otherwise), or other soil problems.J.NATURAL HAZARD ZONE: Special Flood Hazard Areas, Potential Flooding (Inundation) Areas, Very High Fire Hazard Zones, StateFire Responsibility Areas, Earthquake Fault Zones, Seismic Hazard Zones, or any other zone for which disclosure is required by Law.K.PROPERTY DAMAGE: Major damage to the Property or any of the structures or non-structural systems and components and anypersonal property included in the sale from fire, earthquake, floods, landslides or other causes.L.NEIGHBORHOOD, AREA AND PROPERTY CONDITIONS: Neighborhood or area conditions, including Agricultural Use Restrictions pursuant to the Williamson Act (Government Code §§51200-51295), Right To Farm Laws (Civil Code §3482.5 and §3482.6),schools, proximity and adequacy of law enforcement, crime statistics, the proximity of registered felons or offenders, fire protection, othergovernment services, availability, adequacy and cost of any speed-wired, wireless internet connections or other telecommunications orother technology services and installations, proximity to commercial, industrial or agricultural activities, existing and proposedtransportation, construction and development that may affect noise, view, or traffic, airport noise, noise or odor from any source,abandoned mining operations on the Property, wild and domestic animals, other nuisances, hazards, or circumstances, protectedspecies, wetland properties, botanical diseases, historic or other governmentally protected sites or improvements, cemeteries, facilitiesand condition of common areas of common interest subdivisions, and possible lack of compliance with any governing documents orHomeowners' Association requirements, conditions and influences of significance to certain cultures and/or religions, and personalneeds, requirements and preferences of Buyer.M.COMMON INTEREST SUBDIVISIONS: OWNER ASSOCIATIONS: Facilities and condition of common areas (facilities such as pools, tennis courts, walkways, or other areas co-owned in undivided interest with others), Owners' Association that has any authority over thesubject property, CC&Rs, or other deed restrictions or obligations, and possible lack of compliance with any Owners' Associationrequirements. N. SPECIAL TAX: Any local agencies that levy a special tax on the Property pursuant to the Mello-Roos Community Facilities Act or Improvement Bond Act of 1915.0.RENTAL PROPERTY RESTRICTIONS: Some cities and counties impose restrictions that limit the amount of rent that can be charged,the maximum number of occupants and the right of a landlord to terminate a tenancy.P.MANUFACTURED HOME PLACEMENT: Conditions that may affect the ability to place and use a manufactured home on the Property.18.TITLE AND VESTING:A. Within the time specified in paragraph 19, Buyer shall be provided a current preliminary title report ("Preliminary Report"). The Preliminary Report is only an offer by the title insurer to issue a policy of title insurance and may not contain every item affecting title. Buyer's review of the Preliminary Report and any other matters which may affect title are a contingency of this Agreement as specified in paragraph 198. Thecompany providing the Preliminary Report shall, prior to issuing a Preliminary Report, conduct a search of the General Index for all Sellersexcept banks or other institutional lenders selling properties they acquired through foreclosure (REOs), corporations, and government entities. Seller shall within 7 Days After Acceptance, give Escrow Holder a completed Statement of Information. B. Title is taken in its present condition subject to all encumbrances, easements, covenants, conditions, restrictions, rights and othermatters, whether of record or not, as of the date of Acceptance except for: (i) monetary liens of record (which Seller is obligated to pay off) unless Buyer is assuming those obligations or taking the Property subject to those obligations; and (ii) those matters which Seller has agreed to remove in writing.C.Within the time specified in paragraph 19A, Seller has a duty to disclose to Buyer all matters known to Seller affecting title, whether ofrecord or not.D. At Close Of Escrow, Buyer shall receive a grant deed conveying title (or, for stock cooperative or long-term lease, an assignment of stock certificate or of Seller's leasehold interest), including oil, mineral and water rights if currently owned by Seller. Title shall vest as designated in Buyer's supplemental escrow instructions. THE MANNER OF TAKING TITLE MAY HAVE SIGNIFICANT LEGAL AND TAX CONSEQUENCES. CONSULT AN APPROPRIATE PROFESSIONAL.E. Buyer shall receive a "CL TA/AL TA Homeowners Policy of Title Insurance", if applicable to the type of property and buyer. A titlecompany, at Buyer's request, can provide information about the availability, desirability, coverage, and cost of various title insurancecoverages and endorsements. If Buyer desires title coverage other than that required by this paragraph, Buyer shall instruct EscrowHolder in writing and shall pay any increase in cost.19. TIME PERIODS; REMOVAL OF CONTINGENCIES; CANCELLATION RIGHTS: The following time periods may only be extended,altered, modified or changed by mutual written agreement. Any removal of contingencies or cancellation under this paragraph by either Buyer or Seller must be exercised in good faith and in writing (C.A.R. Form CR or CC).A. SELLER HAS: .T(or 2 ) Days After Acceptance to Deliver to Buyer all Reports, disclosures and information for which Seller is responsible under paragraphs 3M, 7A, 8, 9, 12A, B, and E, 13, 16A and 18A. Buyer after first Delivering to Seller a Notice to Seller toPerform (CAR. Form NSP) may cancel this Agreement if Seller has not Delivered the items within the time specified.B. (1) BUYER HAS: �(or _Q_) Days After Acceptance, unless otherwise agreed in writing, to: (i) complete all Buyer Investigations; review all disclosures, reports, and other applicable information, which Buyer receives from Seller; and approve all matters affecting the Property; and (ii) Deliver to Seller Signed Copies of Statutory Disclosures and other disclosures Delivered by Seller in accordance with paragraph 12A.(2)Within the time specified in paragraph 198(1 ), Buyer may request that Seller make repairs or take any other action regarding theProperty (CAR. Form RR). Seller has no obligation to agree to or respond to (CAR. Form RRRR) Buyer's requests.(3)By the end of the time specified in paragraph 198(1) (or as otherwise specified in this Agreement), Buyer shall Deliver to Seller aremoval of the applicable contingency or cancellation (CAR. Form CR or CC) of this Agreement. However, if any report, disclosureor information for which Seller is responsible is not Delivered within the time specified in paragraph 19A, then Buyer has 5 ( or _ ) Days Afte&J)elivery of any such items, or the time specified in paragraph 198(1 ), whichever is later, to Deliver to Seller a removal of the a pli le ontingency or cancellation of this Agreement. Seller's Initials ( ,/'tit( )( OF 11) VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 6 OF 11) Produced w,th Lone Wott Transactions (zipForm Edition) 231 Shearson Cr Cambndge. Ontario. Canada N1T 1J5 www.lwolf.com Jamacha Blvd - DocuSign Envelope ID: 73F78F9D-5428-41AC-9A7C-F41 B0391 EF96 Property Address: Jamacha Blvd, Spring Valley, CA 91978 Date: August 24, 2020 (4) Continuation of Contingency: Even after the end of the time specified in paragraph 198(1) and before Seller cancels, if at all, pursuant to paragraph 19C, Buyer retains the right, in writing, to either (i) remove remaining contingencies, or (ii) cancel this Agreement based on a remaining contingency. Once Buyer's written removal of all contingencies is Delivered to Seller, Seller maynot cancel this Agreement pursuant to paragraph 19C(1 ).C. SELLER RIGHT TO CANCEL:(1)Seller right to Cancel; Buyer Contingencies: If, by the time specified in this Agreement, Buyer does not Deliver to Seller a removal of the applicable contingency or cancellation of this Agreement, then Seller, after first Delivering to Buyer a Notice to Buyerto Perform (C.A.R. Form NBP), may cancel this Agreement. In such event, Seller shall authorize the return of Buyer's deposit,except for fees incurred by Buyer.(2) Seller right to Cancel; Buyer Contract Obligations: Seller, after first delivering to Buyer a NBP, may cancel this Agreement if, bythe time specified in this Agreement, Buyer does not take the following action(s): (i) Deposit funds as required by paragraph 3A or 3B or if the funds deposited pursuant to paragraph 3A or 3B are not good when deposited; (ii) Deliver a notice of FHA or VA costs or terms as required by paragraph 30(3) (C.A.R. Form FVA); (iii) Deliver a letter as required by paragraph 3J(1 ); (iv) Deliververification as required by paragraph 3C or 3H or if Seller reasonably disapproves of the verification provided by paragraph 3C or3H; (v) Return Statutory Disclosures as required by paragraph 12A; or (vi) Sign or initial a separate liquidated damages form for an increased deposit as required by paragraphs 3B and 27B; or (vii) Provide evidence of authority to sign in a representative capacityas specified in paragraph 19. In such event, Seller shall authorize the return of Buyer's deposit, except for fees incurred by Buyer.D.NOTICE TO BUYER OR SELLER TO PERFORM: The NBP or NSP shall: (i) be in writing; (ii) be signed by the applicable Buyer orSeller; and (iii) give the other Party at least 2 (or _) Days After Delivery (or until the time specified in the applicable paragraph, whichever occurs last) to take the applicable action. A NBP or NSP may not be Delivered any earlier than 2 Days Prior to the expiration of the applicable time for the other Party to remove a contingency or cancel this Agreement or meet an obligation specified in paragraph19. E.EFFECT OF BUYER'S REMOVAL OF CONTINGENCIES: If Buyer removes, in writing, any contingency or cancellation rights, unlessotherwise specified in writing, Buyer shall conclusively be deemed to have: (i) completed all Buyer Investigations, and review of reportsand other applicable information and disclosures pertaining to that contingency or cancellation right; (ii) elected to proceed with the transaction; and (iii) assumed all liability, responsibility and expense for Repairs or corrections pertaining to that contingency or cancellation right, or for the inability to obtain financing.F.CLOSE OF ESCROW: Before Buyer or Seller may cancel this Agreement for failure of the other Party to close escrow pursuant to thisAgreement, Buyer or Seller must first Deliver to the other Party a demand to close escrow (C.A.R. Form DCE). The DCE shall: (i) be signed by the applicable Buyer or Seller; and (ii) give the other Party at least 3 (or ) Days After Delivery to close escrow. A DCEmay not be Delivered any earlier than 3 Days Prior to the scheduled close of escrow ___ _G. EFFECT OF CANCELLATION ON DEPOSITS: If Buyer or Seller gives written notice of cancellation pursuant to rights duly exercisedunder the terms of this Agreement, the Parties agree to Sign mutual instructions to cancel the sale and escrow and release deposits, ifany, to the party entitled to the funds, less fees and costs incurred by that party. Fees and costs may be payable to service providersand vendors for services and products provided during escrow. Except as specified below, release of funds will require mutualSigned release instructions from the Parties, judicial decision or arbitration award. If either Party fails to execute mutualinstructions to cancel escrow, one Party may make a written demand to Escrow Holder for the deposit (C.A.R. Form BORD or SDRD).Escrow Holder, upon receipt, shall promptly deliver notice of the demand to the other Party. If, within 10 Days After Escrow Holder'snotice, the other Party does not object to the demand, Escrow Holder shall disburse the deposit to the Party making the demand. If Escrow Holder complies with the preceding process, each Party shall be deemed to have released Escrow Holder from any and all claims or liability related to the disbursal of the deposit. Escrow Holder, at its discretion, may nonetheless require mutual cancellationinstructions. A Party may be subject to a civil penalty of up to $1,000 for refusal to sign cancellation instructions if no good faith dispute exists as to who is entitled to the deposited funds (Civil Code §1057.3).20.REPAIRS: Repairs shall be completed prior to final verification of condition unless otherwise agreed in writing. Repairs to be performed at Seller's expense may be performed by Seller or through others, provided that the work complies with applicable Law, includinggovernmental permit, inspection and approval requirements. Repairs shall be performed in a good, skillful manner with materials of qualityand appearance comparable to existing materials. It is understood that exact restoration of appearance or cosmetic items following all Repairs may not be possible. Seller shall: (i) obtain invoices and paid receipts for Repairs performed by others; (ii) prepare a writtenstatement indicating the Repairs performed by Seller and the date of such Repairs; and (iii) provide Copies of invoices and paid receiptsand statements to Buyer prior to final verification of condition. 21.FINAL VERIFICATION OF CONDITION: Buyer shall have the right to make a final verification of the Property within 5 (or _) Days Priorto Close Of Escrow, NOT AS A CONTINGENCY OF THE SALE, but solely to confirm: (i) the Property is maintained pursuant to paragraph16; (ii) Repairs have been completed as agreed; and (iii) Seller has complied with Seller's other obligations under this Agreement (C.A.R.Form VP).22.ENVIRONMENTAL HAZARD CONSULTATION: Buyer and Seller acknowledge: (i) Federal, state, and local legislation impose liabilityupon existing and former owners and users of real property, in applicable situations, for certain legislatively defined, environmentallyhazardous substances; (ii) Broker(s) has/have made no representation concerning the applicability of any such Law to this transaction or toBuyer or to Seller, except as otherwise indicated in this Agreement; (iii) Broker(s) has/have made no representation concerning the existence, testing, discovery, location and evaluation of/for, and risks posed by, environmentally hazardous substances, if any, located on or potentially affecting the Property; and (iv) Buyer and Seller are each advised to consult with technical and legal experts concerning the existence, testing, discovery, location and evaluation of/for, and risks posed by, environmentally hazardous substances, if any, located on or potentially affecting the Property. illrn Buyer's Initials ( � VLPA REVISED 12/18 (PAGE 7 OF 11) App � Form By:._-1-"""""'---­GenralCounsel Seller's Initials ( .,r//f VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 7 OF 11) ) ( Produced with Lone Wolf Transactions (zipForm Edition) 231 Shearson Cr. Cambridge, Ontario, Canada N1T 1J5 www.lwolf.com Jnmachn Blvd - DocuSign Envelope ID: 73F78F9D-5428-41AC-9A7C-F41B0391EF96 Property Address: Jamacha Blvd, Spring Valley, CA 91978 Date: August 24, 2020 23.PRORATIONS OF PROPERTY TAXES AND OTHER ITEMS: Unless otherwise agreed in writing, the following items shall bePAID CURRENT and prorated between Buyer and Seller as of Close Of Escrow: real property taxes and assessments, interest, rents, HOA regular, special, and emergency dues and assessments imposed prior to Close Of Escrow, premiums on insurance assumedby Buyer, payments on bonds and assessments assumed by Buyer, and payments on Mello-Roos and other Special AssessmentDistrict bonds and assessments that are now a lien. The following items shall be assumed by Buyer WITHOUT CREDIT toward the purchase price: prorated payments on Mello-Roos and other Special Assessment District bonds and assessments and HOA special assessments that are now a lien but not yet due. Property will be reassessed upon change of ownership. Any supplemental tax bills shall be paid as follows: (i) for periods after Close Of Escrow, by Buyer; and (ii) for periods prior to Close Of Escrow, by Seller (see CAR.Form SPT or SBSA for further information). TAX BILLS ISSUED AFTER CLOSE OF ESCROW SHALL BE HANDLED DIRECTLYBETWEEN BUYER AND SELLER. Prorations shall be made based on a 30-day month.24.BROKERS: A. COMPENSATION: Seller or Buyer, or both, as applicable, agrees to pay compensation to Broker as specified in a separate writtenagreement between Broker and that Seller or Buyer. Compensation is payable upon Close Of Escrow, or if escrow does not close, asotherwise specified in the agreement between Broker and that Seller or Buyer.B.SCOPE OF DUTY: Buyer and Seller acknowledge and agree that Broker: (i) Does not decide what price Buyer should pay or Sellershould accept; (ii) Does not guarantee the condition of the Property; (iii) Does not guarantee the performance, adequacy or completeness of inspections, services, products or repairs provided or made by Seller or others; (iv) Does not have an obligation toconduct an inspection of common areas or areas off the site of the Property; (v) Shall not be responsible for identifying defects on theProperty, in common areas, or offsite unless such defects are visually observable by an inspection of reasonably accessible areas of the Property or are known to Broker; (vi) Shall not be responsible for inspecting public records or permits concerning the title or use of Property; (vii) Shall not be responsible for identifying the location of boundary lines or other items affecting title; (viii) Shall not be responsible for verifying square footage, representations of others or information contained in Investigation reports, Multiple ListingService, advertisements, flyers or other promotional material; (ix) Shall not be responsible for determining the fair market value of theProperty or any personal property included in the sale; (x) Shall not be responsible for providing legal or tax advice regarding anyaspect of a transaction entered into by Buyer or Seller; and (xi) Shall not be responsible for providing other advice or information thatexceeds the knowledge, education and experience required to perform real estate licensed activity. Buyer and Seller agree to seeklegal, tax, insurance, title and other desired assistance from appropriate professionals.25.REPRESENTATIVE CAPACITY: If one or more Parties is signing the Agreement in a representative capacity and not for him/herself as anindividual then that Party shall so indicate in paragraph 37 or 38 and attach a Representative Capacity Signature Disclosure (CAR. FormRCSD). Wherever the signature or initials of the representative identified in the RCSD appear on the Agreement or any related documents, ii shall be deemed to be in a representative capacity for the entity described and not in an individual capacity, unless otherwise indicated.The Party acting in a representative capacity (i) represents that the entity for which that party is acting already exists and (ii) shall Deliver tothe other Party and Escrow Holder, within 3 Days After Acceptance, evidence of authority to act in that capacity (such as but not limited to:applicable portion of the trust or Certification Of Trust (Probate Code §18100.5), letters testamentary, court order, power of attorney,corporate resolution, or formation documents of the business entity).26.JOINT ESCROW INSTRUCTIONS TO ESCROW HOLDER: A. The following paragraphs, or applicable portions thereof, of this Agreement constitute the joint escrow instructions of Buyer and Seller to Escrow Holder, which Escrow Holder is to use along with any related counter offers and addenda, and any additional mutual instructions to close the escrow: paragraphs 1, 3, 4B, 5, 6, 7A, 8, 9, 12B, 18, 19G, 23, 24A, 25, 26, 32, 35, 36, 37, 38 andparagraph D of the section titled Real Estate Brokers on page 11. If a Copy of the separate compensation agreement(s) provided for inparagraph 24A, or paragraph D of the section titled Real Estate Brokers on page 10 is deposited with Escrow Holder by Broker, Escrow Holder shall accept such agreement(s) and pay out from Buyer's or Seller's funds, or both, as applicable, the Broker's compensationprovided for in such agreement(s). The terms and conditions of this Agreement not set forth in the specified paragraphs are additionalmatters for the information of Escrow Holder, but about which Escrow Holder need not be concerned. Buyer and Seller will receiveEscrow Holder's general provisions, if any, directly from Escrow Holder and will execute such provisions within the time specified inparagraph 98(1 )(c). To the extent the general provisions are inconsistent or conflict with this Agreement, the general provisions willcontrol as to the duties and obligations of Escrow Holder only. Buyer and Seller will execute additional instructions, documents andforms provided by Escrow Holder that are reasonably necessary to close the escrow and, as directed by Escrow Holder, within 3 (or_ ) Days, shall pay to Escrow Holder or HOA or HOA management company or others any fee required by paragraphs 9, 12 orelsewhere in this Agreement.B.A Copy of this Agreement including any counter offer(s) and addenda shall be delivered to Escrow Holder within 3 Days AfterAcceptance(or ______________ ).Buyer and Seller authorize Escrow Holder to accept and rely on Copies andSignatures as defined in this Agreement as originals, to open escrow and for other purposes of escrow. The validity of this Agreementas between Buyer and Seller is not affected by whether or when Escrow Holder Signs this Agreement. Escrow Holder shall provideSeller's Statement of Information to Title company when received from Seller. If Seller delivers an affidavit to Escrow Holder to satisfySeller's FIRPTA obligation under paragraph 12B, Escrow Holder shall deliver to Buyer a Qualified Substitute statement that complieswith federal Law.C. Brokers are a party to the escrow for the sole purpose of compensation pursuant to paragraph 24A and paragraph D of the sectiontitled Real Estate Brokers on page 11. Buyer and Seller irrevocably assign to Brokers compensation specified in paragraph 24A, and irrevocably instruct Escrow Holder to disburse those funds to Brokers at Close Of Escrow or pursuant to any other mutually executedcancellation agreement. Compensation instructions can be amended or revoked only with the written consent of Brokers. Buyer andSeller shall release and hold harmless Escrow Holder from any liability resulting from Escrow Holder's payment to Broker(s) ofcompensation pursuant to this Agreement. D.Upon receipt, Escrow Holder shall provide Seller and Seller's Broker verification of Buyer's deposit of funds pursuant to paragraph 3Aand 3B. Once Escrow Holder becomes aware of any of the following, Escrow Holder shall immediately notify all Brokers: (i) if Buyer's initial or any additional deposit is not made pursuant to this Agreement, or is not good at time of deposit with Escrow Holder; or (ii) ifBuyer an r instruct Escrow Holder to cancel escrow. Buyer's Initials ( Seller's Initials ( ) ( VLPA REVISED 12/18 (PAGE 8 OF 11) VACANT LAND PUR CHASE AGREEMENT (VLPA PAGE 8 OF 11) Produced with Lone Wolf Transactions (zipForm Edition) 231 Shearson Cr. Cambndge, Ontario, Canada NH 1J5 www.lwolf.com Jnmachn Ulvd • DocuSign Envelope ID: 73F78F9D-5428-41AC-9A7C-F4180391 EF96 Property Address: Jamacha Blvd, Spring Valley, CA 91978 Date: August 24, 2020 E. A Copy of any amendment that affects any paragraph of this Agreement for which Escrow Holder is responsible shall bedelivered to Escrow Holder within 3 Days after mutual execution of the amendment.27. REMEDIES FOR BUYER'S BREACH OF CONTRACT: A. Any clause added by the Parties specifying a remedy (such as release or forfeiture of deposit or making a deposit non­refundable) for failure of Buyer to complete the purchase in violation of this Agreement shall be deemed invalid unlessthe clause independently satisfies the statutory liquidated damages requirements set forth in the Civil Code.8. LIQUIDATED DAMAGES: If Buyer fails to complete this purchase because of Buyer's default, Seller shall retain, asliquidated damages, the deposit actually paid. Buyer and Seller agree that this amount is a reasonable sum giventhat it is impractical or extremely difficult to establish the amount of damages that would actually be suffered bySeller in the event Buyer were to breach this Agreement. Release of funds will require mutual, Signed release instructions from both Buyer and Seller, judicial decision or arbitration award. AT TIME OF ANY INCREASED DEPOSITBUYER AND SELLER SHALL SIGN A SEPARATE LIQUIDATED DAMAGES PROVISION INCORPORATING THEINCREASED DEPOSIT AS LIQUIDATEmAGES (CAR.FORM ffiD). Buyer's Initials v)V)v:\ Seller's Initials ..../d--'---- 28.DISPUTE RESOLUTION: A. MEDIATION: The Parties agree to mediate any dispute or claim arising between them out of this Agreement, or any resultingtransaction, before resorting to arbitration or court action through the C.A. R. Consumer Mediation Center (www.consumermediation.org) or through any other mediation provider or service mutually agreed to by the Parties. The Partiesalso agree to mediate any disputes or claims with Broker(s), who, in writing, agree to such mediation prior to, or withina reasonable time after, the dispute or claim is presented to the Broker. Mediation fees, if any, shall be divided equallyamong the Parties involved. If, for any dispute or claim to which this paragraph applies, any Party (i) commences an actionwithout first attempting to resolve the matter through mediation, or (ii) before commencement of an action, refuses to mediateafter a request has been made, then that Party shall not be entitled to recover attorney fees, even if they would otherwise beavailable to that Party in any such action. THIS MEDIATION PROVISION APPLIES WHETHER OR NOT THE ARBITRATIONPROVISION IS INITIALED. Exclusions from this mediation agreement are specified in paragraph 28C.8.ARBITRATION OF DISPUTES: The Parties agree that any dispute or claim in Law or equity arising between them out of this Agreement or any resulting transaction, which is not settled through mediation, shall be decided by neutral, binding arbitration. The Parties also agree to arbitrate any disputes or claims with Broker(s), who, in writing, agree to such arbitration prior to, or within areasonable time after, the dispute or claim is presented to the Broker. The arbitrator shall be a retired judge or justice, or an attorney with at least 5 years of transactional real estate Law experience, unless the parties mutually agree to adifferent arbitrator. The Parties shall have the right to discovery in accordance with Code of Civil Procedure §1283.05. Inall other respects, the arbitration shall be conducted in accordance with Title 9 of Part 3 of the Code of Civil Procedure.Judgment upon the award of the arbitrator(s) may be entered into any court having jurisdiction. Enforcement of this agreement to arbitrate shall be governed by the Federal Arbitration Act. Exclusions from this arbitration agreement arespecified in paragraph 28C."NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISINGOUT OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION DECIDED BYNEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTSYOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING INTHE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL,UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE 'ARBITRATION OF DISPUTES'PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOUMAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVILPROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY.""WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MA TIERS INCLUDED IN THE •oo=N OF DISPUTES' PROVISION TO NEUTRAL ARBITRATION." Buyer's Initials ... ====--�-Seller's Initials ..#--1 ___ _ C.ADDITIONAL MEDIATION AND ARBIT �S: (1)EXCLUSIONS: The following matters are excluded from mediation and arbitration: (i) a judicial or non-judicialforeclosure or other action or proceeding to enforce a deed of trust, mortgage or installment land sale contractas defined in Civil Code §2985; (ii) an unlawful detainer action; and (iii) any matter that is within the jurisdictionof a probate, small claims or bankruptcy court. (2)PRESERVATION OF ACTIONS: The following shall not constitute a waiver nor violation of the mediation andarbitration provisions: (i) the filing of a court action to preserve a statute of limitations; (ii) the filing of a courtaction to enable the recording of a notice of pending action, for order of attachment, receivership, injunction, orother provisional remedies; or (iii) the filing of a mechanic's lien. (3)BROKERS: Brokers shall not be obligated nor compelled to mediate or arbitrate unless they agree to do so in writing. Any Broker(s) participating in mediation or arbitration shall not be deemed a party to the Agreement. 29. SELECTION OF SERVICE PROVIDERS: Brokers do not guarantee the performance of any vendors, service or product providers("Providers" , bether referred by Broker or selected by Buyer, Seller or other person. Buyer and Seller may select ANY Providersof their ow c��il)!il_-_Buyer's Initials ( -'J...lY� Seller's Initials ( /JI ) ( VLPA REVISE 9 OF 11) f.'..A VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 9 OF 11) Produced with Lone Wolf Transactions (zipForm Ed1lion) 231 Shearson Cr. Cambndge. Onlano, Canada NH 1J5 www.lwolf.com ,Jnnrnrlrn Blvd • DocuSign Envelope ID: 73F78F9O-5428-41AC-9A7C-F4180391 EF96 Property Address: Jamacha Blvd, Spring Valley, CA 91978 Date: August 24, 2020 30. MULTIPLE LISTING SERVICE ("MLS"): Brokers are authorized to report to the MLS a pending sale and, upon Close Of Escrow,the sales price and other terms of this transaction shall be provided to the MLS to be published and disseminated to persons andentities authorized to use the information on terms approved by the MLS. 31.ATTORNEY FEES: In any action, proceeding, or arbitration between Buyer and Seller arising out of this Agreement, the prevailingBuyer or Seller shall be entitled to reasonable attorneys fees and costs from the non-prevailing Buyer or Seller, except as providedin paragraph 28A. 32.ASSIGNMENT: Buyer shall not assign all or any part of Buyer's interest in this Agreement without first having obtained the written consent of Seller. Such consent shall not be unreasonably withheld unless otherwise agreed in writing. Any total or partial assignment shall not relieve Buyer of Buyer's obligations pursuant to this Agreement unless otherwise agreed in writing by Seller (CAR. Form AOAA). 33. EQUAL HOUSING OPPORTUNITY: The Property is sold in compliance with federal, state and local anti-discrimination Laws. 34. TERMS AND CONDITIONS OF OFFER: This is an offer to purchase the Property on the above terms and conditions. The liquidated damages paragraph or the arbitration of disputes paragraph is incorporated in this Agreement if initialed by all Parties orif incorporated by mutual agreement in a counteroffer or addendum. If at least one but not all Parties initial, a counter offer isrequired until agreement is reached. Seller has the right to continue to offer the Property for sale and to accept any other offer atany time prior to notification of Acceptance. Buyer has read and acknowledges receipt of a Copy of the offer and agrees to theconfirmation of agency relationships. If this offer is accepted and Buyer subsequently defaults, Buyer may be responsible forpayment of Brokers' compensation. This Agreement and any supplement, addendum or modification, including any Copy, may be Signed in two or more counterparts, all of which shall constitute one and the same writing.35.TIME OF ESSENCE; ENTIRE CONTRACT; CHANGES: Time is of the essence. All understandings between the Parties are incorporated in this Agreement. Its terms are intended by the Parties as a final, complete and exclusive expression of theirAgreement with respect to its subject matter, and may not be contradicted by evidence of any prior agreement or contemporaneousoral agreement. If any provision of this Agreement is held to be ineffective or invalid, the remaining provisions will nevertheless begiven full force and effect. Except as otherwise specified, this Agreement shall be interpreted and disputes shall be resolved in accordance wth the Laws of the State of California. Neither this Agreement nor any provision in it may be extended, amended, modified, altered or changed, except in writing Signed by Buyer and Seller.36.DEFINITIONS: As used in this Agreement:A. "Acceptance" means the time the offer or final counter offer is accepted in writing by a Party and is delivered to and personally received by the other Party or that Party's authorized agent in accordance with the terms of this offer or a final counter offer.B."Agreement" means this document and any counter offers and any incorporated addenda, collectively forming the bindingagreement between the Parties. Addenda are incorporated only when Signed by all Parties.C."C.A.R. Form" means the most current version of the specific form referenced or another comparable form agreed to by the parties. D."Close Of Escrow" means the date the grant deed, or other evidence of transfer of title, is recorded.E."Copy" means copy by any means including photocopy, NCR, facsimile and electronic.F."Days" means calendar days. However, after Acceptance, the last Day for performance of any act required by this Agreement(including Close Of Escrow) shall not include any Saturday, Sunday, or legal holiday and shall instead be the next Day.G. "Days After" means the specified number of calendar days after the occurrence of the event specified, not counting the calendar date on which the specified event occurs, and ending at 11 :59 PM on the final day.H."Days Prior" means the specified number of calendar days before the occurrence of the event specified, not counting thecalendar date on which the specified event is scheduled to occur.I."Deliver", "Delivered" or "Delivery", unless otherwise specified in writing, means and shall be effective upon: personalreceipt by Buyer or Seller or the individual Real Estate Licensee for that principal as specified in the section titled Real EstateBrokers on page 11, regardless of the method used (i.e., messenger, mail, email, fax, other).J."Electronic Copy" or "Electronic Signature" means, as applicable, an electronic copy or signature complying with California Law. Buyer and Seller agree that electronic means will not be used by either Party to modify or alter the content or integrity ofthis Agreement without the knowledge and consent of the other Party. K. "Law" means any law, code, statute, ordinance, regulation, rule or order, which is adopted by a controlling city, county, state orfederal legislative, judicial or executive body or agency.L."Repairs" means any repairs (including pest control), alterations, replacements, modifications or retrofitting of the Propertyprovided for under this Agreement. M. "Signed" means either a handwritten or electronic signature on an original document, Copy or any counterpart. 37. EXPIRATION OF OFFER: This offer shall be deemed revoked and the deposit, if any, shall be returned to Buyer unless the offer isSigned by Seller and a Copy of the Signed offer is personally received by Buyer, or by Vince Provenzano , who is authorized to receive it, by 5:00 PM on the third Day after this offer is signed by Buyer (or by ___ UAM/ LJ PM, on___________ (date)).LJ One or more Buyers is signing the Agreement in a representative capacity and not for him/herself as an individual. See attached Representative Capacity Signature Disclosure tr.AR. Form RCSD-B) for additional terms. 8/27/2020 �,O_::.:ig#b� Date _____ BUYER __ ,_,,.__� )Jt'-<----------------------------- (Print name) Dan Miller W?IDEA4s21•c• .. Da� ____ BUYER (Print name) __________________________________________ _ UAdditional Signature Addendum attached (CAR. Form ASA). VLPA REVISED 12/18 (PAGE 10 OF 11) Seller's Initials ( ) ( VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 10 OF 11) Produced w,lh Lone Wo� Transactions (ZipForm Edition) 231 Shearson Cr. Cambridge. Ontario. Canada NH 1J5 www.lwolf com Janrnt'lm Bh·d - DocuSign Envelope ID: 73F78F9D-5428-41AC-9A7C-F41 B0391 EF96 Property Address: Jamacha Blvd, Spring Valley, CA 91978 Date: August 24, 202038. ACCEPTANCE OF OFFER: Seller warrants that Seller is the owner of the Property, or has the authority to execute this Agreement.Seller accepts the above offer and agrees to sell the Property on the above terms and conditions, and agrees to the aboveconfirmation of agency relationships. Seller has read and acknowledges receipt of a Copy of this Agreement, and authorizesBroker to Deliver a Signed Copy to Buyer.0 (If checked) SELLER'S ACCEPTANCE IS SUBJECT TO A TT ACHED COUNTER OFFER (C.A.R. Form SCO or SMCO) DATED: D One or more Sellers is signing the Agreement in a representative capacity and not for him/herself as an individual. See attached Representative Capacity Signature Disclosure (C A. . Form RCSD-S) for additional terms. Date '1 '"L,'Lo SELLER (Print name) OWD Jose Martine Date ____ SELLER (Print name) __________________________________________ _ □Additional Signature Addendum attached (C.A.R. Form ASA). (_I_) (Do not initial if making a counter offer.) CONFIRMATION OF ACCEPTANCE: A Copy of Signed Acceptance was(Initials) �rsonaJ!.¥ received by Buyer or Buyer's authorized agent on (date) ________ ,--___ at __ ...,.....--,-�LJ AM/ LJ PM. A binding Agreement is created when a Copy of Signed Acceptance is personally received by Buyer or Buyer's authorized agent whether or not confirmed in this document. Completion of this confirmation is not legally required in order to create a binding Agreement; it is solely intended to evidence the date that Confirmation of Acceptance has occurred. REAL ESTATE BROKERS: A.Real Estate Brokers are not parties to the Agreement between Buyer and Seller. B. Agency relationships are confirmed as stated in paragraph 2. C.If specified in paragraph 3A(2), Agent who submitted the offer for Buyer acknowledges receipt of deposit.D.COOPERATING (BUYER'S) BROKER COMPENSATION: Seller's Broker agrees to pay Buyer's Broker and Buyer's Broker agreesto accept, out of Seller's Broker's proceeds in escrow, the amount specified in the MLS, provided Buyer's Broker is a Participant ofthe MLS in which the Property is offered for sale or a reciprocal MLS. If Seller's Broker and Buyer's Broker are not both Participantsof the MLS, or a reciprocal MLS, in which the Property is offered for sale, then compensation must be specified in a separate writtenagreement (C.A.R. Form CBC). Declaration of License and Tax (C.A.R. Form DL T) may be used to document that tax reporting willbe required or that an exemption exists.E.PRESENTATION OF OFFER: Pursuant to Standard of Practice 1-7, if Buyer's Broker makes a written request, Seller's Broker shallconJirrni�.�//Jng_ that this offer has been presented to Seller. B v� P--ww� Vince Provenzano DRE Lie.# 00780182B�s '13ro�erage Firm Pacific Coast Commercial B aEaJs93s21EE�sa DRE Lie. # Address 10721 Treena Street, Suite 200 City San DiegoTelephone 619.469.3600 Fax 858.560.5604 E-mail vincepro(@,cox.net B ll�t ���"•4 Vince Provenzano DRE Lie.# 00780182 SE•lil<!!l'll!!• F;m, Pacmc Coast Comme,dal B DRE Lie.# Ad resta3593e21FE�ee. .City Telephone Fax E-mail ESCROW HOLDER ACKNOWLEDGMENT: Escrow Holder acknowledges receipt of a Copy of this Agreement. (if checked, 0 a deposit in the amount of$ counter offer numbers O Seller's Statement of Information and DRE Lic. ���f} Date Date State CA Zip 92131 DRE Lie. #oy��9�zeDate 7- Date State ___ Zip ), , and agrees to act as Escrow Holder subject to paragraph 26 of this Agreement. any supplemental escrow instructions and the terms of Escrow Holder's general provisions. Escrow Holder is advised that the date of Confirmation of Acceptance of the Agreement as between Buyer and Seller is Escrow Holder Escrow# By Date Address Phone/F ax/E-mail Escrow Holder has the following license number# 0 Department of Business Oversight, 0 Department of Insurance, 0 Department of Real Estate. PRESENTATION OF OFFER: ( ) Seller's Broker presented this offer to Seller on (date). Broker or Designee Initials REJECTION OF OFFER: ( )( ) No counter offer is being made. This offer was rejected by Seller on (date). Seller's Initials 01996-2018, California Association of REALTORS®. Inc. United States copyright law (TiUe 17 U.S. Code) forbids the unauthorized distribution. display and reproduction of this form. or any portion thereof, by photocopy machine or any other means. including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSION os I] Published and Distributed by: Buyer's Acknowledg REAL ESTATE BUSINESS SERVICES, LLC. this Agreement ( a subsidiary of the CALIFORNIA ASSOC/A TION OF REAL TORS® -\:=::=�:..:....::::::---7",�f . 525 South Virgil Avenue. Los Angeles, California 90020 VLPA REVISED 12118 (PAGE 11 OF 11) VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 11 OF 11) Produced with Lone Wolf Transactions (ZJpForm Edition) 231 Shearson Cr. Cambndge, Ontano. Canada NH 1J5 www lwolf.com Janrnclrn Blvd - DocuSign Envelope ID: 73F78F9D-5428-41AC-9A7C-F41 B0391 EF96 CALIFORNIA ASSOCIATION OF REALTORS® BUYER'S VACANT LAND ADDITIONAL INSPECTION ADVISORY (C.A.R. Form BVLIA, 11/13) Property Address: Jamacha Blvd, Spring Vallev. CA 91978 ("Property"). A. IMPORTANCE OF PROPERTY INVESTIGATION: The physical condition of the land and improvements being purchased is not guaranteed by either Seller or Brokers. For this reason, you should conduct thorough investigations of the Property personally and withprofessionals who should provide written reports of their investigations. A general physical inspection typically does not cover allaspects of the Property nor items affecting the Property that are not physically located on the Property. If the professionals recommendfurther investigations, including a recommendation by a pest control operator to inspect inaccessible areas of the Property, you shouldcontact qualified experts to conduct such additional investigations. Additionally, some inspections, such as those listed below, may beof particular importance when purchasing vacant land. B.BUYER RIGHTS AND DUTIES: You have an affirmative duty to exercise reasonable care to protect yourself, including discovery of the legal, practical and technical implications of disclosed facts, and the investigation and verification of information and facts thatyou know or that are within your diligent attention and observation. The purchase agreement gives you the right to investigate theProperty. If you exercise this right, and you should, you must do so in accordance with the terms of that agreement. This is the bestway for you to protect yourself. It is extremely important for you to read all written reports provided by professionals and to discuss theresults of inspections with the professional who conducted the inspection. You have the right to request that Seller make repairs, corrections or take other action based upon items discovered in your investigations or disclosed by Seller. If Seller is unwilling orunable to satisfy your requests, or you do not want to purchase the Property in its disclosed and discovered condition, you have theright to cancel the agreement if you act within specific time periods. If you do not cancel the agreement in a timely and proper manner,you may be in breach of contract. C.SELLER RIGHTS AND DUTIES: Seller is required to disclose to you material facts known to him/her that affect the value ordesirability of the Property. However, Seller may not be aware of some Property defects or conditions. Seller does not have anobligation to inspect the Property for your benefit nor is Seller obligated to repair, correct or otherwise cure known defects that aredisclosed to you or previously unknown defects that are discovered by you or your inspectors during escrow. The purchase agreementobligates Seller to make the Property available to you for investigations. D. BROKER OBLIGATIONS: Brokers do not have expertise in all areas and therefore cannot advise you on many items, such as soilstability, geologic or environmental conditions, hazardous or illegal controlled substances, structural conditions of the foundation or other improvements, or the condition of the roof, plumbing, heating, air conditioning, electrical, sewer, septic, waste disposal, or othersystem. The only way to accurately determine the condition of the Property is through an inspection by an appropriate professionalselected by you. If Broker gives you referrals to such professionals, Broker does not guarantee their performance. You may select anyprofessional of your choosing. If you have entered into a written agreement with a Broker, the specific terms of that agreement willdetermine the nature and extent of that Broker's duty to you. YOU ARE STRONGLY ADVISED TO INVESTIGATE THE CONDITION AND SUITABILITY OF ALL ASPECTS OF THE PROPERTY. IF YOU DO NOT DO SO, YOU ARE ACTING AGAINST THE ADVICE OF BROKERS. E. YOU ARE ADVISED TO CONDUCT INVESTIGATIONS OF THE ENTIRE PROPERTY, INCLUDING, BUT NOT LIMITED TO THEFOLLOWING: 1. FINANCE: Financing the purchase of vacant land finance and especially financing construction loans for the improvementof vacant land can provide particular challenges, including subordination agreements and insurance requirements. Buyer isadvised to seek the assistance of reputable lenders in assistance with their decisions regarding financing of the property. 2. CONSTRUCTION COSTS: If Buyer is contemplating building improvements on the property, Buyer is advised that they will have to contact directly any contractors, service providers, suppliers, architects, utility companies regarding the costs ofimprovements. Buyer is advised to get written bids from all such persons regarding their decision to develop the property. 3. UTILITIES: Unimproved property may or may not have utilities available to the property. Buyer(s) is advised to obtain information from the public or private utility provider about the availability and cost of providing utilities to the property andwhether necessary easements are in place to allow such utilities to the property. 4. ENVIRONMENTAL SURVEY: Unimproved land may have had or may have hazardous materials stored upon or under the land or been used by persons engaged in activities exposing the land to hazardous materials. The land may also be host toprotected vegetation or animal life. Buyer(s) is advised to satisfy themselves as what hazards or protected plant or animal life are on the property and what impact they may have on Buyer's future plans for the property by seeking the help of a qualified p�: ional. Buyer's Initials ( WV'JA� .......... --�",_,.,.,..-,,--.,. Seller's Initials ( Liv/ ) �--� Ap / © 2013, California Association of REAL TORS®, Inc. BVLIA 11/13 (PAGE 1 OF 2) BUYER'S VACANT LAND ADDITIONAL INSPECTION ADVISORY BVLIA PAGE 1 OF 2 Pacific Const Commercial. 10721 Trtt:na Street, Sui1e 200 San Diego CA 92131 Phone: 619.469.3600 Fax: 858.560.5604 Vince rroveniano Produced with Lone \Nolf Transactions (zipForm Edition) 231 Shearson Cr. Cambridge, Ontario, Canada N1T 1J5 www.lwolf.com Jamndm 131vd • DocuSign Envelope ID: 73F78F9D-5428-41AC-9A7C-F41 B0391 EF96 Property Address: Jamacha Blvd, Spring Valley, CA 91978 Date: _________ _ 5.NATURAL HAZARDS REPORTS: Buyer(s) is advised that while certain disclosures are required by state, federal and local laws,hazard disclosure companies can provide additional disclosures for both natural and man-made hazards or nuisances for a cost.Buyer is advised to seek the advice of a natural hazards reporting company regarding additional reports and disclosures thatbuyer may wish to obtain. 6. SUBDIVISION OF THE PROPERTY: If Buyer's plans include future subdivision of the property (whether under the SubdivisionMap Act of the Subdivided Lands Law) multiple, complex issues regarding city, county, state, and federal laws may be presented. Buyer is strongly advised to seek the advice of California legal counsel familiar with federal, state and local subdivisionrequirements. Buyer and Seller acknowledge and agree that Broker: (i) Does not decide what price Buyer should pay or Seller should accept; (ii) Does not guarantee the· condition of the Property; (iii) Does not guarantee the performance, adequacy or completeness of inspections, services, products or repairs provided or made by Seller or others; (iv) Does not have an obligation to conduct an inspection of common areas or areas off the site of the Property; (v) Shall not be responsible for identifying defects on the Property, in common areas, or offsite unless such defects are visually observable by an inspection of reasonably accessible areas of the Property or are known to Broker; (vi) Shall not be responsible for inspecting public records or permits concerning the title or use of Property; (vii) Shall not be responsible for identifying the location of boundary lines or other items affecting title; (viii) Shall not be responsible for verifying square footage, representations of others or information contained in Investigation reports, Multiple Listing Service, advertisements, flyers or other promotional material; (ix) Shall not be responsible for providing legal or tax advice regarding any aspect of a transaction entered into by Buyer or Seller; and (x) Shall not be responsible for providing other advice or information that exceeds the knowledge, education and experience required to perform real estate licensed activity. Buyer and Seller agree to seek legal, tax, insurance, title and other desired assistance from appropriate professionals. By signing below, Buyer and Seller each acknowledge that they have read, understand, accept and have received a Copy of this Advisory. Buyer is encouraged to read it carefully. SELLER �� Date "\-<..•-ZP OWD,�nez, General Manager SELLER BUYER BUYER �OocuSigned by: �/ Date ________ _ 8/27/2020 Date _________ _ Date ________ _ CC 2013, California Association of REALTORS®, Inc. United States copyright law (Title 17 U.S. Code) forbids the unauthorized distribution, display and reproduction of this fonn, or any portion thereof, by photocopy machine or any other means. including facsimile or computerized fonnats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE. CONSULT AN APPROPRIATE PROFESSIONAL. This fonn is made available to real estate professionals through an agreement with or purchase from the Cal�omia Association of REAL TORS®. It is not intended to identify the user as a REALTOR®. REAL TOR® is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REALTORS® who subscribe to its Code of Ethics. ll Published and Distributed by: REAL ESTATE BUSINESS SERVICES, LLC. a subsidiary of the California Association of REAL TORS® • 525 South Virgil Avenue, Los Angeles, California 90020 BVLIA 11/13 (PAGE 2 OF 2) BUYER'S VACANT LAND ADDITIONAL INSPECTION ADVISORY (BVLIA PAGE 2 OF 2) Produced w,tll Lone Wolf Transactions (zipForm Edition) 231 Shearson Cr. Cambridge, Ontario. Canada NH 1J5 www lwolf.com Jamacha Blvd • DocuSign Envelope ID: 73F78F9D-5428-41AC-9A7C-F4180391 EF96 �-� C A L I F O R. N I A �., ASSOCIATION � OF REALTOR.S'.E CALIFORNIA CONSUMER PRIVACY ACT ADVISORY (C.A.R. Form CCPA, 12/19) As of January 1, 2020, the California Consumer Privacy Act (commencing with Civil Code § 1798.100) ("CCPA") grants to California residents certain rights in their private, personal information that is collected by companies with whom they do business. Under the CCPA, "personal information" is defined broadly to encompass non-public records information that could reasonably be linked directly or indirectly to you, including, potentially, photographs of or sales information about your property. Some of your personal information will be collected and likely shared with others during the process of buying and selling real estate. Depending on the situation, you may have the right to "opt out" or stop the transfer of your personal information to others and request that certain businesses delete your personal information altogether. Not all businesses you interact with are required to comply with the law, primarily just those who meet the criteria of a covered "Business" as set forth in Section 1798.140 (c)). For more information, you may ask your Broker for a copy of the C.A.R. Legal Q&A on the subject. A real estate broker is likely to submit personal information to a Multiple Listing Service ("MLS") in order to help find a buyer for a seller's property. Through the MLS, the information is made available to real estate brokers and salespeople, and others. Even after a sale is complete, the MLS distributes sales information to the real estate community. Brokers, agents and MLSs may also share your personal information with others who post the personal information on websites or elsewhere, or otherwise use it. Thus, there are various service providers and companies in a real estate transaction who may be engaged in using or sharing data involving your personal information. If your broker is a covered Business, it should have a privacy policy explaining your rights on its website and giving you an opportunity to request that personal information not be shared, used and even deleted. Even if your real estate brokerage is a covered Business, it needs, and is allowed, to keep your information to effectuate a sale and, by law, is required to maintain such information for three years to comply with regulatory requirements. Not all brokers are covered Businesses, however, and those that are not, do not have to comply with the CCPA. Similarly, most MLSs will not be considered a covered Business. Instead, the MLS may be considered a Third Party in the event a covered Business (ex: brokerages, real estate listing aggregation or advertising internet sites or other outlets who meet the criteria of covered Businesses) exchanges personal information with the MLS. You do not have the right under the CCPA to require a Third Party to delete your personal information. And like real estate brokerages, even if an MLS is a covered Business, MLSs are also required by law to retain and make accessible in its computer system any and all listing and other information for three years. Whether an MLS is a covered Business or a Third Party, you have a right to be notified about the sharing of your personal information and your right to contact a covered Business to opt out of your personal information being used, or shared with Third Parties. Since the MLSs and/or other entities receiving your personal information do not have direct contact with buyers and sellers and also may not be aware of which entities exchanging personal information are covered Businesses, this form is being used to notify you of your rights under the CCPA and your ability to direct requests to covered Businesses not to share personal information with Third Parties. One way to limit access to your personal information, is to inform your broker or salesperson you want to opt-out of the MLS, and if so, you will be asked to sign a document (Form SELM) confirming your request to keep your listing off the MLS. However, if you do so, it may be more difficult to sell your property or obtain the highest price for it because your property will not be exposed to the greatest number of real estate licensees and others. I/we acknowledge receipt of a copy of this California Consumer Privacy Act Advisory. 8/27/2020 Date _______ _ � tis21 ... Buyer/Seller/Landlord/TenantC �� □=�= Buyer/Seller/Landlord/Tenant_"'"""-,::-�;.,:.,::"'-'""""'_,,_....£. ______________ Date __ ct_-_-Z_-_-z..o ___ _ � 2019. California Association of REALTORS®. Inc. United States copyright law (Title 17 U.S. Code) forbids the unauthorized distribution. display and reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS®. NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE. CONSULT AN APPROPRIATE PROFESSIONAL. This form is made available to real estate professionals through an agreement with or purchase from the California Association of REAL TORS®. It is not intended to identify the user as a REAL TOR®. REAL TOR® is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REALTORS® who subscribe to its Code of Ethics. [_ Published and Distributed by: REAL ESTATE BUSINESS SERVICES. LLC. a subsidiary of the CALIFORNIA ASSOCIATION OF REAL TORS® 525 South Virgil Avenue, Los Angeles, California 90020 CCPA 12/19 (PAGE 1 OF 1) Ap CALIFORNIA CONSUMER PRIVACY ACT ADVISORY CCPA PAGE 1 OF 1 P:tcilic Coast Commercial, 10721 Trtt1u1 Slrttl. Suite 200 San Diego CA 92131 Phone: 619.-169.3600 Fax: 858.560.S60.i Vince Pro\·en:iano Produced with Lone VVolf Transactions (zipForm Edition) 231 Shearson Cr. Cambridge, Ontario. Canada N1T 1J5 www.lwolf.com Jamncha Bh·d - STAFF REPORT TYPE MEETING: Regular Board Meeting MEETING DATE: October 7, 2020 SUBMITTED BY: Susan Cruz, District Secretary W.O./G.F. NO: APPROVED BY: Susan Cruz, District Secretary Jose Martinez, General Manager DIV. NO. SUBJECT: Adoption of Ordinance No. 579 Amending Section 6, Conflict of Interest Code, of the District’s Code of Ordinances GENERAL MANAGER’S RECOMMENDATION: That the Board adopt Ordinance No. 579 amending Section 6, Conflict of Interest Code (COIC), 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. PURPOSE: To amend Section 6, COIC, 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. COMMITTEE ACTION: See Attachment A. ANALYSIS: As required by the Political Reform Act (“Act”), staff has conducted a biennial review of the District’s COIC. The District’s General Counsel reviewed the COIC and has suggested that the District include the Political Reform Act (Government Code Section 8100, et seq.) AGENDA ITEM 9a language within the District’s Code. The language has been added at the beginning of the COIC and states: The Political Reform Act (Government Code section 81000, et seq.) requires state and local government agencies to adopt and promulgate conflict of interest codes. The Fair Political Practices Commission has adopted a regulation (2 Cal. Code of Regs. Sec. 18730) that contains the terms of a standard conflict of interest code, which can be incorporated by reference in an agency’s code. After public notice and hearing, the standard code may be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act. Therefore, the terms of 2 California Code of Regulations Section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission are hereby incorporated by reference. This regulation and the attached Appendix, designating positions and establishing disclosure requirements, shall constitute the Conflict of Interest Code of the Otay Water District (District). In addition, as the Statute language has changed with regard to District officials who manage public investments and are not subject to the District’s COIC except with respect to its disqualification provisions, and must file disclosure statements under Government Code Section 87200 et seq., the District’s General Counsel has updated the verbiage in the Appendix of the District’s COIC with current Statute language as follows: District Officials who manage public investments, as defined by 2 Cal. Code of Regs. § 18701 (b) are not subject to the District's Conflict of Interest Code except with respect to its disqualification provisions. They must file disclosure statements under Government Code § 87200 et seq. [2 CCR § 18730(b)(3)] These positions are listed above for informational purposes only. Individuals holding the positions listed below are officials who manage public investments and who must file their disclosure statements under Government Code Section 87200: Members of the Board of Directors General Manager Chief Financial Officer Asst. Chief Financial Officer Financial Consultants Individuals holding the above-listed positions may contact the Fair Political Practices Commission for assistance or written advice regarding their filing obligations if they believe that their position has been categorized incorrectly. The Fair Political Practices Commission makes the final determination whether a position is covered by Government Code Section 87200. Government Code Section 87200 requires that individuals holding the above-listed positions shall, each year at a time specified by commission regulations, file a statement disclosing their investments, their interests in real property and their income during the period since the previous statement filed. The statement shall include any investments and interest in real property held at any time during the period covered by the statement, whether or not they are still held at the time of filing. The footnote in the COIC Appendix has also been updated to reflect current Statute language. The new added footnote language follows: 1 Consultants/New Positions are included in the list of designated positions and shall disclose pursuant to the broadest disclosure category in the code, subject to the following limitation: The General Manager may determine in writing that a particular consultant or new position, although a “designated position,” is hired to perform a range of duties that is limited in scope and, thus, not required to fully comply with the disclosure requirements in this section. Such written determination shall include a description of the consultant’s or new position’s duties and, based upon that description, a statement of the extent of the disclosure requirements. The written determination is a public record and shall be retained for public inspection in the same manner and location as this Conflict of Interest Code (Gov. Code section 81008). Further, the District has made organizational changes that affect the titles listed in its COIC. The District no longer has an Asst. Chief of Engineering or an Asst. Chief of Operations. Accordingly, the following titles have been deleted and are being removed from the Appendix of the COIC: • Asst. Chief of Engineering • Asst. Chief of Water Operations Ordinance No. 579 is submitted for the Board’s approval to amend the COIC as indicated above. A strike-thru copy of the COIC is attached to the ordinance for reference. FISCAL IMPACT: None. LEGAL IMPACT: None. Attachments: Attachment A – Committee Notes Attachment B - Ordinance No. 579 Strike-Thru Copy of the District’s COIC Attachment C – Clean Copy of the Proposed COIC ATTACHMENT A SUBJECT/PROJECT: Adoption of Ordinance No. 579 Amending Section 6, Conflict of Interest Code, of the District’s Code of Ordinances COMMITTEE ACTION: The Finance and Administration Committee (Committee) reviewed this item at a meeting held on September 22, 2020 and the following comments were made: • Staff is requesting that the Board adopt Ordinance No. 579 amending Section 6, Conflict of Interest Code (COIC), 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. • Information was reviewed from the staff report. • In response to an inquiry from the Committee, General Counsel indicated that the Political Reform Act language added to the beginning of the District’s COIC explains the requirement for local agencies to adopt a COIC. It also indicates that if there are any changes implemented by the Fair Political Practices Commission, those changes would automatically be incorporated into the District’s COIC. Upon completion of the discussion, the committee supported staff’s recommendation and presentation to the full board as an action item. Page 1 of 1 ORDINANCE NO. 579 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING SECTION 6, CONFLICT OF INTEREST CODE, OF THE DISTRICT’S CODE OF ORDINANCE BE IT ORDAINED by the Board of Directors of Otay Water District that the District’s Code of Ordinances, Section 6, Conflict of Interest Code (COIC), be amended 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. The amendments are presented in Exhibit A attached to this ordinance. NOW, THEREFORE, BE IT RESOLVED that the amendments to Section 6, Conflict of Interest Code, to the District’s Code of Ordinances shall become effective immediately upon adoption. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting duly held this 7th day of October 2020, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ________________________________ President ATTEST: _____________________________ District Secretary Attachment B 6-1 OTAY WATER DISTRICT CONFLICTS OF INTEREST CODE DIVISION I DISTRICT ADMINISTRATION CHAPTER 5 PERSONNEL PRACTICES SECTION 6 CONFLICT OF INTEREST CODE The Political Reform Act (Government Code section 81000, et seq.) requires state and local government agencies to adopt and promulgate conflict of interest codes. The Fair Political Practices Commissison has adopted a regulation (2 Cal. Code of Regs. Sec. 18730) that contains the terms of a standard conflict of intertest code, which can be incorporated by reference in an agency’s code. After public notice and hearing, the standard code may be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act. Therefore, the terms of 2 California Code of Regulations Section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission are hereby incorporated by reference. This regulation and the attached Appendix, designating positions and establishing disclosure requirements, shall constitute the cConflict of iInterest cCode of the Otay Water District (District). 6.01 DEFINITIONS The definitions contained in the Political Reform Act of 1974 (Government Code Sections 81000 et seq.), regulations of the Fair Political Practices Commission (2 Cal. Code of Regs. Sections 18100, et seq.), and any amendments to the Act or regulations, are incorporated by reference into this Conflict of Interest Code. 6.02 DESIGNATED EMPLOYEES The persons holding positions listed in the Appendix are designated employees. It has been determined that these persons make or participate in the making of decisions which may foreseeably have a material effect on financial interests. The General Manager or his/her designee shall have the authority to designate any person holding a position within the District as a person designated to provide disclosures regardless of whether or not the position that the person holds is included in the Appendix if, in the view of the General Manager or his/her designee, the person has the potential to make or participate in the making of decisions which may foreseeably have a material effect on financial interests. Exhibit A 6-2 6.03 DISCLOSURE CATEGORIES This Code does not establish any disclosure obligation for those designated employees who are also specified in Government Code Section 87200 if they are designated in this code in that same capacity, or if the geographical jurisdiction of this agency is the same as or is wholly included within the jurisdiction in which those persons must report their financial interest pursuant to Article 2 of Chapter 7 of the Political Reform Act, Government Code Sections 87200, et seq.1 In addition, this code does not establish any disclosure obligation for any designated public officials who are designated in a conflict of interest code for another agency, if all of the following apply: (A) The geographical jurisdiction of this agency is the same as or is wholly included within the jurisdiction of the other agency; (B) The disclosure assigned in the code of the other agency is the same as that required under Article 2 of Chapter 7 of the Political Reform Act, Government Code Section 87200; and (C) The filing officer is the same for both agencies. Such persons are covered by this Code for disqualification purposes only. With respect to all other designated employees, the disclosure categories set forth in the Appendix specify which kinds of financial interests are reportable. Such a designated employee shall disclose in his or her Statement of Economic Interest those financial interests he or she has which are of the kind described in the disclosure categories to which he or she is assigned in the Appendix. It has been determined that the financial interests set forth in a designated employee’s disclosure categories are the kinds of financial interests which he or she foreseeably can affect materially through the conduct of his or her office. 6.04 STATEMENTS OF ECONOMIC INTERESTS: PLACE OF FILING All officials and employees required to submit a Statement of Economic Interest (employees in Designated Positions) shall file their statements with the General Manager, or his or her designee. The District shall make and retain a copy of all statements filed by Designated Positions and forward the originals of such statements to 1 Designated employees who are required to file statements of economic interest under any other agency’s Conflict of Interest Code or under Article 2 for a different jurisdiction, may expand their statement of economic interests to cover reportable interest in both jurisdictions, and file copies of this expanded statement with both entities in lieu of filing separate and district statements, provided that each copy of such expanded statement filed in place of an original is signed and verified by the designated employee as if it were an original. See Government Code Section 81004. 6-3 the Executive Office of the Board of Supervisors of San Diego County. All retained statements, originals or copies shall be available for public inspection and reproduction. (Cal. Gov’t Code § 81008).2 The General Manager, or his or her designee may file Statements of Economic Interests electronically in accordance with the provisions of Government Code Section 87500.2. 6.05 STATEMENTS OF ECONOMIC INTERESTS: TIME OF FILING (A) Initial Statements. All designated employees employed by the agency on the effective date of this code, as originally adopted, promulgated, and approved by the code reviewing body, shall file statements within 30 days after the effective date of this code. Thereafter, each person already in a position when it is designated by an amendment to this code shall file an initial statement within 30 days after the effective date of the amendment. (B) Assuming Office Statements. All persons assuming designated positions after the effective date of this code shall file statements within 30 days after assuming the designated positions, or if subject to State Senate confirmation, 30 days after being nominated or appointed. If a person assumes an office between October 1 and December 31 and files an assuming office Statement of Economic Interests, that person need not file an annual Statement of Economic Interests pursuant to Section 87203 until one year later than the date specified in subsection C below. (C) Annual Statements. All designated employees shall file statements no later than April 1. (D) Leaving Office Statements. All persons who leave designated positions shall file statements within 30 days after leaving office. (E) Military Service. If a person reports for military service as defined in the Servicemember's Civil Relief Act, the deadline for the annual statement of economic interests is 30 days following his or her return to office, provided the person, or someone authorized to represent the person's interests, notifies the filing officer in writing prior to the applicable filing deadline that he or she is subject to that federal statute and is unable to meet the applicable deadline, and provides the filing officer verification of his or her military status. 2 See Government Code section 81010 and 2 Cal. Code of Regs. section 18115 for the duties of filing officers and persons in agencies who make and retain copies of statements and forward the originals to the filing officer. 6-4 6.06 STATEMENTS FOR PERSONS WHO RESIGN PRIOR TO ASSUMING OFFICE Any person who resigns within 12 months of initial appointment, or within 30 days of the date of notice provided by the filing officer to file an assuming office statement, is not deemed to have assumed office or left office, provided he or she did not make or participate in the making of, or use his or her position to influence any decision and did not receive or become entitled to receive any form of payment as a result of his or her appointment. Such persons shall not file either an assuming or a leaving office statement. (A) Any person who resigns a position within 30 days of the date of a notice from the filing officer shall do both of the following: 1. File a written resignation with the appointing power; and 2. File a written statement with the filing officer declaring under penalty of perjury that during the period between appointment and resignation he or she did not make, participate in the making, or use the position to influence any decision of the agency or receive, or become entitled to receive, any form of payment by virtue of being appointed to the position. 6.07 CONTENTS OF AND PERIOD COVERED BY STATEMENTS OF ECONOMIC INTERESTS (A) Contents of Initial Statements Initial statements shall disclose any reportable investments, interests in real property and business positions held on the effective date of the code and income received during the 12 months prior to the effective date of the code. (B) Contents of Assuming Office Statements Assuming office statements shall disclose any reportable investments, interests in real property and business positions held on the date of assuming office or on the date of appointment, and income received during the 12 months prior to the date of assuming office or the date of being appointed, respectively. (C) Contents of Annual Statements Annual statements shall disclose any reportable investments, interests in real property, income and business positions held or received during the previous calendar year provided, however, that the period covered by an employee’s first annual statement shall begin on 6-5 the effective date of the code or the date of assuming office, whichever is later. (D) Contents of Leaving Office Statements Leaving office statements shall disclose reportable investments, interest in real property, income and business positions held or received during the period between the closing date of the last statement filed and the date of leaving office. 6.08 MANNER OF REPORTING Statements of economic interest shall be made on forms prescribed by the Fair Political Practices Commission and supplied by the agency, and shall contain the following information: (A) Investments and Real Property Disclosure When an investment or an interest in real property3 is required to be reported4, the statement shall contain the following: 1. A statement of the nature of the investment or interest; 2. The name of the business entity in which each investment is held, and a general description of the business activity in which the business entity is engaged; 3. The address or other precise location of the real property; 4. A statement whether the fair market value of the investment or interest in real property equals or exceeds two thousand dollars ($2,000), exceeds ten thousand dollars ($10,000), exceeds one hundred thousand dollars ($100,000), or exceeds one million dollars ($1,000,000). (B) Personal Income Disclosure When personal income is required to be reported5, the statement shall contain: 3 For the purpose of disclosure only (not disqualification), an interest in real property does not include the principal residence of the filer. 4 Investments and interests in real property which have a fair market value of less than $2,000 are not investments and interests in real property within the meaning of the Political Reform Act. However, investments or interests in real property of an individual include those held by the individual’s spouse and dependent children as well as a pro rata share of any investment or interest in real property of any business entity or trust in which the individual, spouse and dependent children own, in the aggregate, a direct, indirect or beneficial interest of 10 percent or greater. 6-6 1. The name and address of each source of income aggregating $500 or more in value or $50 or more in value if the income was a gift, and a general description of the business activity, if any, of each source; 2. A statement whether the aggregate value of income from each source, or in the case of a loan, the highest amount owed to each source, was one thousand dollars ($1,000) or less, greater than one thousand dollars ($1,000), greater than ten thousand dollars ($10,000), or greater than one hundred thousand dollars ($100,000); 3. A description of the consideration, if any, for which the income was received; 4. In the case of a gift, the name, address and business activity of the donor and any intermediary through which the gift was made; a description of the gift; the amount or value of the gift; and the date on which the gift was received. A gift includes forgiveness of a debt or a rebate or discount of a debt owed6; 5. In the case of a loan given or received, the annual interest rate and the security, if any, given for the loan and the term of the loan. 6. Gov. Code section 82030 defines income and specifically excludes: (a) Any loan or loans from a commercial lending institution which are made in the lender's regular course of business on terms available to members of the public without regard to official status. (b) Any loan from or payments received on a loan made to an individual's spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, uncle, aunt, or first cousin, or the spouse of any such person, provided that a loan or loan payment received from any such person shall be considered income if he or she is acting as an agent or intermediary for any person not covered by this paragraph. 5 A designated employee’s income includes his or her community property interest in the income of his or her spouse but does not include salary or reimbursement for expenses received from a state, local or federal government agency. 6 2 Cal. Code of Regs. section 18940 6-7 (c) Any indebtedness created as part of a retail installment or credit card transaction if made in the lender's regular course of business on terms available to members of the public without regard to official status. (C) Business Entity Income Disclosure When income of a business entity, including income of a sole proprietorship, is required to be reported7, the statement shall contain: 1. The name, address, and a general description of the business activity of the business entity; 2. The name of every person from whom the business entity received payments if the filer’s pro rata share of gross receipts from such person was equal to or greater than $10,000. (D) Business Position Disclosure When business positions are required to be reported, a designated employee shall list the name and address of each business entity in which he or she is a director, officer, partner, trustee, employee or in which he or she holds any position of management, a description of the business activity in which the business entity is engaged, and the designated employee’s position with the business entity. (E) Acquisition or Disposal During Reporting Period In the case of an annual or leaving office statement, if an investment or an interest in real property was partially or wholly acquired or disposed of during the period covered by the statement, the statement shall contain the date of acquisition or disposal. 6.09 PROHIBITION ON RECEIPT OF HONORARIA A. No designated public official shall accept any honorarium from any source, if the member or employee would be required to report the receipt of income or gifts from that source on his or her statement of economic interests. 7 Income of a business entity is reportable if the direct, indirect, or beneficial interest of the filer and the filer’s spouse in the business entity aggregates a 10 percent or greater interest. In addition, the disclosure of persons who are clients or customers of a business entity is required only if the clients or customers are within one of the disclosure categories of the filer. 6-8 Subdivisions (a), (b), and (c) of Government Code Section 89501 shall apply to the prohibitions in this section. This section shall not limit or prohibit payments, advances, or reim-bursements for travel and related lodging and subsistence authorized by Government Code section 89506. 6.10 PROHIBITION ON RECEIPT OF GIFTS IN EXCESS OF AMOUNT ESTABLISHED BY LAW8 A. No designated public official shall accept gifts with a total value of more than the maximum amount established by law, in any calendar year, from any single source, if the member or employee would be required to report the receipt of income or gifts from that source on his or her statement of economic interests. Subdivisions (e), (f), and (g) of Government Code section 89503 shall apply to the prohibitions in this section. 6.11 LOANS TO PUBLIC OFFICIALS A. No elected officer of a state or local government agency shall, from the date of his or her election to office through the date that he or she vacates office, receive a personal loan from any officer, employee, member, or consultant of the state or local government agency in which the elected officer holds office or over which the elected officer’s agency has direction and control. B. No public official who is exempt from the state civil service system pursuant to subdivisions (c), (d), (e), (f), and (g) of Section 4 of Article VII of the Constitution shall, while he or she holds office, receive a personal loan from any officer, employee, member, or consultant of the state or local government agency in which the public official holds office or over which the public official’s agency has direction and control. This subdivision shall not apply to loans made to a public official whose duties are solely secretarial, clerical, or manual. C. No elected officer of a state or local government agency shall, from the date of his or her election to office through the date that he or she vacates office, receive a personal loan from any person who has a contract with the state or local government agency to which that elected officer has been elected or over which that elected officer’s agency has direction and control. This subdivision shall not apply to 8 Designated Persons are prohibited from accepting gifts from any single source in a calendar year with a total value in excess of designated amounts. See Govt. Code § 89503, sub-divisions (e), (f) and (g). [Note: Pursuant to Gov. Code § 89503(f), the FPPC adjusts the gift limit every odd-numbered year to reflect changes in the Consumer Price Index; therefore, the $470 limit adopted by the FPPC in January of 2017 will be updated in January 2019 and every odd year thereafter, until further notice. See also 2 CCR § 18940.2] 6-9 loans made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card transaction, if the loan is made or the indebtedness created in the lender’s regular course of business on terms available to members of the public without regard to the elected officer’s official status. D. No public official who is exempt from the state civil service system pursuant to subdivisions (c), (d), (e), (f), and (g) of Section 4 of Article VII of the Constitution shall, while he or she holds office, receive a personal loan from any person who has a contract with the state or local government agency to which that elected officer has been elected or over which that elected officer’s agency has direction and control. This subdivision shall not apply to loans made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card transaction, if the loan is made or the indebtedness created in the lender’s regular course of business on terms available to members of the public without regard to the elected officer’s official status. This subdivision shall not apply to loans made to a public official whose duties are solely secretarial, clerical, or manual. E. This section shall not apply to the following: 1. Loans made to the campaign committee of an elected officer or candidate for elective office. 2. Loans made by a public official’s spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in- law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or the spouse of any such persons, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this section. 3. Loans from a person which, in the aggregate, do not exceed five hundred dollars ($500) at any given time. 4. Loans made, or offered in writing, before January 1, 1998. 6.12 LOAN TERMS A. Except as set forth in subdivision (B), no elected officer of a state or local government agency shall, from the date of his or her election to office through the date he or she vacates office, receive a personal loan of five hundred dollars ($500) or more, except when the loan is in writing and clearly states the terms of the loan, including the parties to the loan agreement, date of the loan, amount of the loan, term of the loan, date or dates when payments shall be due on the loan and the amount of the payments, and the rate of interest paid on the loan. B. This section shall not apply to the following types of loans: 6-10 1. Loans made to the campaign committee of the elected officer. 2. Loans made to the elected officer by his or her spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or the spouse of any such person, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this section. 3. Loans made, or offered in writing, before January 1, 1998. C. Nothing in this section shall exempt any person from any other provision of Title 9 of the Government Code. 6.13 PERSONAL LOANS A. Except as set forth in subdivision (B), a personal loan received by any designated public official shall become a gift to the designated public official for the purposes of this section in the following circumstances: 1. If the loan has a defined date or dates for repayment, when the statute of limitations for filing an action for default has expired. 2. If the loan has no defined date or dates for repayment, when one year has elapsed from the later of the following: a. The date the loan was made. b. The date the last payment of one hundred dollars ($100) or more was made on the loan. c. The date upon which the debtor has made payments on the loan aggregating to less than two hundred fifty dollars ($250) during the previous 12 months. B. This section shall not apply to the following types of loans: 1. A loan made to the campaign committee of an elected officer or a candidate for elective office. 2. A loan that would otherwise not be a gift as defined in this title. 3. A loan that would otherwise be a gift as set forth under subdivision (A), but on which the creditor has taken reasonable action to collect the balance due. 4. A loan that would otherwise be a gift as set forth under subdivision (A), but on which the creditor, based on reasonable 6-11 business considerations, has not undertaken collection action. Except in a criminal action, a creditor who claims that a loan is not a gift on the basis of this paragraph has the burden of proving that the decision for not taking collection action was based on reasonable business considerations. 5. A loan made to a debtor who has filed for bankruptcy and the loan is ultimately discharged in bankruptcy. C. Nothing in this section shall exempt any person from any other provisions of Title 9 of the Government Code. 6.14 DISQUALIFICATION No designated employee shall make, participate in making, or in any way attempt to use his or her official position to influence the making of any governmental decision which he or she knows or has reason to know will have a reasonably foreseeable material financial effect, distinguishable from its effect on the public generally, on the official or a member of his or her immediate family or on: (A) Any business entity in which the designated employee has a direct or indirect investment worth $2,000 or more; (B) Any real property in which the designated employee has a direct or indirect interest worth $2,000 or more; (C) Any source of income, other than gifts and other than loans by a commercial lending institution in the regular course of business on terms available to the public without regard to official status, aggregating $500 or more in value provided to, received by or promised to the designated employee within 12 months prior to the time when the decision is made; (D) Any business entity in which the designated employee is a director, officer, partner, trustee, employee, or holds any position of management; or (E) Any donor of, or any intermediary or agent for a donor of, a gift or gifts aggregating to the maximum amount established by law, or more, in value provided to, received by, or promised to the designated employee within 12 months prior to the time when the decision is made. 6.15 LEGALLY REQUIRED PARTICIPATION 6-12 No designated public official shall be prevented from making or participating in the making of any decision to the extent his or her participation is legally required for the decision to be made. The fact that the vote of a designated public official who is on a voting body is needed to break a tie does not make his or her participation legally required for purposes of this section. 6.16 DISQUALIFICATION OF STATE OFFICERS AND EMPLOYEES In addition to the general disqualification provisions of Section 6.14, no state administrative official shall make, participate in making, or use his or her official position to influence any governmental decision directly relating to any contract where the state administrative official knows or has reason to know that any party to the contract is a person with whom the state administrative official, or any member of his or her immediate family has, within 12 months prior to the time when the official action is to be taken: (A) Engaged in a business transaction or transactions on terms not available to members of the public, regarding any investment or interest in real property; or (B) Engaged in a business transaction or transactions on terms not available to members of the public regarding the rendering of goods or services totaling in value $1000 or more. 6.17 DISCLOSURE OF DISQUALIFYING INTEREST When a designated public official determines that he or she should not make a governmental decision because he or she has a disqualifying interest in it, the determination not to act may be accompanied by disclosure of the disqualifying interest. 6.18 ASSISTANCE OF THE COMMISSION AND COUNSEL Any designated employee who is unsure of his or her duties under this code may request assistance from the Fair Political Practices Commission pursuant to Government Code Section 83114 and 2 CCR Sections 18329 and 18329.5 or from the attorney for his or her agency, provided that nothing in this section requires the attorney for the agency to issue any formal or informal opinion. 6.19 VIOLATIONS This code has the force and effect of law. Designated employees violating any provision of this code are subject to the administrative, criminal, and civil sanctions provided in the Political Reform Act, Government Code Sections 81000 – 91015. In 6-13 addition, a decision in relation to which a violation of the disqualification provisions of this code or of Government Code Section 87100 or 87450 has occurred may be set aside as void pursuant to Government Code Section 91003. 6.20 PROHIBITED TRANSACTIONS Members of the Board of Directors and Designated Employees shall comply with the Prohibited Transactions policy, annexed hereto as Exhibit A, pursuant to California Government Code Sections 1090, et seq. 6.21 INCOMPATIBLE ACTIVITIES Members of the Board of Directors, District officers, and all other District employees shall comply with the Incompatible Activities policy, annexed hereto as Exhibit B, pursuant to California Government Code Sections 1126, et seq. 6-14 APPENDIX OTAY WATER DISTRICT CONFLICT OF INTEREST CODE DESIGNATED POSITIONS DESIGNATED EMPLOYEES’ TITLE OR FUNCTION__ DISCLOSURE CATEGORIES ASSIGNED General Manager 1, 2, 3, 4, 5, 6 District Secretary 6 Assistant Chief of Engineering 1, 2, 3, 4, 6, 7 Assistant Chief of Finance 1, 2, 5, 6, 7 Assistant Chief of Water Operations 1, 2, 3, 4, 6, 7 Chief of Administrative Services 1, 2, 3, 4, 5, 6, 7 Chief Financial Officer 1, 2, 5, 6, 7 Chief of Engineering 1, 2, 3, 4, 6, 7 Chief of Water Operations 1, 2, 3, 4, 6, 7 Associate Civil Engineer 1, 2, 3, 4, 7 Communications Officer 6 Customer Service Manager 2, 5, 7 Environmental Compliance Specialist 1, 2, 3, 4, 7 Engineering Manager 1, 2, 3, 4, 7 Field Services Manager 1, 2, 3, 4, 7 Finance Manager 2, 5, 7 GIS Manager 3, 6, 7 Human Resources Manager 3, 6 IT Manager 3, 6, 7 Network Engineer 3, 6, 7 6-15 Purchasing and Facilities Manager 2, 6 Safety and Security Specialist 1, 2, 3, 4, 6 Senior Procurement and Contracting Analyst 6 Senior Civil Engineer 1, 2, 3, 4, 7 System Operations Manager 1, 2, 3, 4, 7 Utility Services Manager 1, 2, 3, 4, 7 Consultant/New Positions9 1, 2, 3, 4, 5, 6 District Officials who manage public investments, as defined by 2 Cal. Code of Regs. § 18701 (b) are not subject to the District's Conflict of Interest Code except with respect to its disqualification provisions. They must file disclosure statements under Government Code § 87200 et seq. [2 CCR § 18730(b)(3)] These positions are listed above for informational purposes only. Individuals holding the positions listed below are officials who manage public investments and who must file their disclosure statements under Government Code Section 87200: Members of the Board of Directors General Manager Chief Financial Officer Asst. Chief Financial Officer Financial Consultants Individuals holding the above-listed positions may contact the Fair Political Practices Commission for assistance or written advice regarding their filing obligations if they believe that their position 9 Consultants/New Positions are included in the list of designated positions and shall disclosure pursuant to the broadest disclosure category in the code, subject to the following limitation: The General Manager may determine in writing that a particulart consultant or new position, although a “designated position,” is hired to perreform a range of duties that is limited in scope and, thus, not required to fully comply with the disclosure requirements in this section. Such written determination shall include a description of the consultant’s or new position’s duties and, based upon that description, a statement of the extent of the disclosure requirements. The X’swritten determination is a public record and shall be retained for public inspection in the same manner and location as this cConflict of iInterest cCode (Gov. Code section 81008) Consultants are required to file disclosure statements where they: (a) conduct research and arrive at conclusions with respect to rendition of information, advice, recommendation or counsel independent of control and direction of the agency or any agency official other than normal contract monitoring; and (b) possess no authority with respect to any agency decision beyond the rendition of information, advice, recommendation or counsel. The determination as to whether a consultant shall be required to file a disclosure statement shall be made by the General Manager or his or her designee. 6-16 has been categorized incorrectly. The Fair Political Pracitices Commission makes the final determination whether a position is covered by Government Code Section 87200. Government Code Section 87200 requires that individuals holding the above-listed positions shall, each year at a time specified by commission regulations, file a statement disclosing their investments, their interests in real property and their income during the period since the previous statement filed. The statement shall include any investments and interest in real property held at any time during the period covered by the statement, whether or not they are still held at the time of filing. The Treasurer and all District Officials who manage the investment of public funds are included in and governed by this Conflict of Interest Code only with respect to its disqualification provisions. For purposes of disclosure, the Treasurer and all District Officials who manage the investment of public funds are governed by the statutory conflict of interest provisions of Article 2 of Chapter 7 of the Political Reform Act of 1974. (Government Code Sections 87200, et seq.) 6-17 APPENDIX, CONTINUED DISCLOSURE CATEGORIES The disclosure categories listed below identify the types of investments, business entities, sources of income, or real property which the designated employee must disclose for each disclosure category to which he or she is assigned. Category 1: All investments and business positions in, and sources of income from, all business entities that do business or own real property in the District, plan to do business or own real property in the District within the next year or have done business or owned real property in the District within the past two years. Category 2: All interests in real property which are located in whole or in part within, or not more than two (2) miles outside the boundaries of the District. Category 3: All investments and business positions in, and sources of income from, business entities subject to the regulatory, permit or licensing authority of the Designated Employee’s Department, will be subject to such authority within the next year or have been subject to such authority within the past two years. Category 4: All investments, business positions, and sources of income from, business entities that are engaged in land development, construction or the acquisition or sale of real property in the District, plan to engage in such activities in the District within the next year or have engaged in such activities in the District within the past two years. Category 5: All investments and business positions in, and sources of income from, business entities that are banking, savings and loan or other financial institutions. Category 6: All investments and business positions in, and sources of income from, business entities that provide services, supplies, materials, machinery, or equipment of a type purchased, leased, used, or administered by the District. Category 7: All investments and business positions in, and sources of income from, business entities that provide services, supplies, materials, machinery, or equipment of a type purchased, leased, used, or administered by the Designated Employee’s Department. 6-18 EXHIBIT A Prohibited Transactions for Specified Personnel Members of the Board of Directors (“Members”) shall comply with this Prohibited Transactions policy pursuant to California Government Code §§ 1090, et seq. Members shall not be financially interested in any contract made by them in their official capacity, or by any body or board of which they are members. Members shall not be purchasers at any sale or vendors at any purchase made by them in their official capacity. Members shall not be deemed to be interested in a contract entered into by a body or board of which they are members if the Member has only a remote interest in the contract and if the fact of that interest is disclosed to the body or board of which the Member is a member and noted in its official records, and thereafter the body or board authorizes, approves, or ratifies the contract in good faith by a vote of its membership sufficient for the purpose without counting the vote or votes of the Board of Directors member with the remote interest. “Remote interest” shall be defined as in California Government Code § 1091(b). Members shall not be considered to be financially interested in a contract if their interest is including, but not limited to, any of the following (Government Code § 1091.5): 1. That of an officer in being reimbursed for his/her actual and necessary expenses incurred in the performance of an official duty; 2. That of a recipient of public services generally provided by the public body or board of which he/she is a member, on the same terms and conditions as if he or she were not a member of the board; 3. That of a landlord or tenant of the contracting party if such contracting party is the federal government or any federal department or agency, this state or an adjoining state, any department or agency of this state or an adjoining state, any county or city of this state or an adjoining state, or an public corporation or special, judicial or other public district of this state or an adjoining state unless the subject matter of such contract is the property in which such officer or employee has such interest as landlord or tenant in which even his/her interest shall be deemed a remote interest within the meaning of, and subject to, the provisions of Government Code 1091; 6-19 4. That of a spouse of an officer or employee of a public agency if his/her spouse’s employment or office-holding has existed for at least one year prior to his/her election or appointment; 5. That of a non-salaried member of a nonprofit corporation, provided that such interest is disclosed to the board at the time of the first consideration of the contract, and provided further that such interest is noted in its official records; 6. That of a non-compensated officer of a nonprofit, tax-exempt corporation, which, as one of its primary purposes, supports the functions of the board or to which the board has legal obligation to give particular consideration, and provided further that such interest is noted in its official records; For purposes of this paragraph, an officer is “noncompensated” even though he or she receives reimbursement from the nonprofit, tax-exempt corporation for necessary travel and other actual expenses incurred in performing the duties of his or her office. 7. That of compensation for employment with a governmental agency, other than the governmental agency that employs the officer or employee, provided that the interest is disclosed to the board at the time of consideration of the contract, and provided further that the interest is noted in its official records; 8. That of an attorney of the contracting party of that of an owner, officer, employee or agent of a firm which renders, or has rendered, service to the contracting party in the capacity of stockbroker, insurance agent, insurance broker, real estate agent, or real estate broker if these individuals have not received and will not receive remuneration, consideration, or a commission as a result of the contract and if these individuals have an ownership interest of less than 10 percent in the law practice or firm, stock brokerage firm, insurance firm or real estate firm. In addition, Members shall not be deemed to be interested in a contract made pursuant to competitive bidding under a procedure established by law if their sole interest is that of an officer, director, or employee of a bank or savings and loan association with which a party to the contract has the relationship of borrower or depositor, debtor or creditor (Government Code § 1091.5). Authority: California Government Code §§ 1090, et seq. 6-20 EXHIBIT B Incompatible Activities Policy District officers, members of the Board of Directors, and all other District employees (collectively, “district personnel”) shall comply with this Incompatible Activities policy pursuant to California Government Code §§ 1125, et seq. District personnel shall not engage in any employment, activity, or enterprise for compensation which is inconsistent, incompatible, in conflict with, or inimical to his or her duties as a member of the Board of Directors, or with the duties, functions, or responsibilities of his or her appointing power or the agency by which he or she is employed. The outside employment, activity, or enterprise of district personnel is prohibited if it: (1) involves the use for private gain or advantage of his or her local District time, facilities, equipment and supplies; or the badge, uniform, prestige, or influence of his or her local District office or employment or, (2) involves receipt or acceptance by district personnel of any money or other consideration from anyone other than the District for the performance of an act which district personnel, if not performing such act, would be required or expected to render in the regular course or hours of their local District employment or as a part of their duties as a local District officer or employee or, (3) involves the time demands as would render performance of his or her duties as a local district personnel member less efficient. Nothing in this policy shall be interpreted to prohibit any outside employment, activity, counsel, or enterprise on behalf of another governmental entity, subject to common law and professional conflict of interest rules. Copies of this regulation shall be posted in prominent places at the District Office. District personnel who violate this regulation may be subject to discipline as set forth in the applicable Code of Ordinances and Policies. Board of Directors members who violate this section may be subject to censure. Disciplinary appeals by district personnel shall be handled pursuant to applicable Code of Ordinances and Policies. Authority: California Government Code §§ 1125, et seq. 6-1 OTAY WATER DISTRICT CONFLICTS OF INTEREST CODE DIVISION I DISTRICT ADMINISTRATION CHAPTER 5 PERSONNEL PRACTICES SECTION 6 CONFLICT OF INTEREST CODE The Political Reform Act (Government Code section 81000, et seq.) requires state and local government agencies to adopt and promulgate conflict of interest codes. The Fair Political Practices Commission has adopted a regulation (2 Cal. Code of Regs. Sec. 18730) that contains the terms of a standard conflict of interest code, which can be incorporated by reference in an agency’s code. After public notice and hearing, the standard code may be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act. Therefore, the terms of 2 California Code of Regulations Section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission are hereby incorporated by reference. This regulation and the attached Appendix, designating positions and establishing disclosure requirements, shall constitute the Conflict of Interest Code of the Otay Water District (District). 6.01 DEFINITIONS The definitions contained in the Political Reform Act of 1974 (Government Code Sections 81000 et seq.), regulations of the Fair Political Practices Commission (2 Cal. Code of Regs. Sections 18100, et seq.), and any amendments to the Act or regulations, are incorporated by reference into this Conflict of Interest Code. 6.02 DESIGNATED EMPLOYEES The persons holding positions listed in the Appendix are designated employees. It has been determined that these persons make or participate in the making of decisions which may foreseeably have a material effect on financial interests. The General Manager or his/her designee shall have the authority to designate any person holding a position within the District as a person designated to provide disclosures regardless of whether or not the position that the person holds is included in the Appendix if, in the view of the General Manager or his/her designee, the person has the potential to make or participate in the making of decisions which may foreseeably have a material effect on financial interests. Attachment C 6-2 6.03 DISCLOSURE CATEGORIES This Code does not establish any disclosure obligation for those designated employees who are also specified in Government Code Section 87200 if they are designated in this code in that same capacity, or if the geographical jurisdiction of this agency is the same as or is wholly included within the jurisdiction in which those persons must report their financial interest pursuant to Article 2 of Chapter 7 of the Political Reform Act, Government Code Sections 87200, et seq.1 In addition, this code does not establish any disclosure obligation for any designated public officials who are designated in a conflict of interest code for another agency, if all of the following apply: (A) The geographical jurisdiction of this agency is the same as or is wholly included within the jurisdiction of the other agency; (B) The disclosure assigned in the code of the other agency is the same as that required under Article 2 of Chapter 7 of the Political Reform Act, Government Code Section 87200; and (C) The filing officer is the same for both agencies. Such persons are covered by this Code for disqualification purposes only. With respect to all other designated employees, the disclosure categories set forth in the Appendix specify which kinds of financial interests are reportable. Such a designated employee shall disclose in his or her Statement of Economic Interest those financial interests he or she has which are of the kind described in the disclosure categories to which he or she is assigned in the Appendix. It has been determined that the financial interests set forth in a designated employee’s disclosure categories are the kinds of financial interests which he or she foreseeably can affect materially through the conduct of his or her office. 6.04 STATEMENTS OF ECONOMIC INTERESTS: PLACE OF FILING All officials and employees required to submit a Statement of Economic Interest (employees in Designated Positions) shall file their statements with the General Manager, or his or her designee. The District shall make and retain a copy of all statements filed by Designated Positions and forward the originals of such statements to the Executive Office of the Board of Supervisors of San Diego County. 1 Designated employees who are required to file statements of economic interest under any other agency’s Conflict of Interest Code or under Article 2 for a different jurisdiction, may expand their statement of economic interests to cover reportable interest in both jurisdictions, and file copies of this expanded statement with both entities in lieu of filing separate and district statements, provided that each copy of such expanded statement filed in place of an original is signed and verified by the designated employee as if it were an original. See Government Code Section 81004. 6-3 All retained statements, originals or copies shall be available for public inspection and reproduction. (Cal. Gov’t Code § 81008).2 The General Manager, or his or her designee may file Statements of Economic Interests electronically in accordance with the provisions of Government Code Section 87500.2. 6.05 STATEMENTS OF ECONOMIC INTERESTS: TIME OF FILING (A) Initial Statements. All designated employees employed by the agency on the effective date of this code, as originally adopted, promulgated, and approved by the code reviewing body, shall file statements within 30 days after the effective date of this code. Thereafter, each person already in a position when it is designated by an amendment to this code shall file an initial statement within 30 days after the effective date of the amendment. (B) Assuming Office Statements. All persons assuming designated positions after the effective date of this code shall file statements within 30 days after assuming the designated positions, or if subject to State Senate confirmation, 30 days after being nominated or appointed. If a person assumes an office between October 1 and December 31 and files an assuming office Statement of Economic Interests, that person need not file an annual Statement of Economic Interests pursuant to Section 87203 until one year later than the date specified in subsection C below. (C) Annual Statements. All designated employees shall file statements no later than April 1. (D) Leaving Office Statements. All persons who leave designated positions shall file statements within 30 days after leaving office. (E) Military Service. If a person reports for military service as defined in the Servicemember's Civil Relief Act, the deadline for the annual statement of economic interests is 30 days following his or her return to office, provided the person, or someone authorized to represent the person's interests, notifies the filing officer in writing prior to the applicable filing deadline that he or she is subject to that federal statute and is unable to meet the applicable deadline, and provides the filing officer verification of his or her military status. 2 See Government Code section 81010 and 2 Cal. Code of Regs. section 18115 for the duties of filing officers and persons in agencies who make and retain copies of statements and forward the originals to the filing officer. 6-4 6.06 STATEMENTS FOR PERSONS WHO RESIGN PRIOR TO ASSUMING OFFICE Any person who resigns within 12 months of initial appointment, or within 30 days of the date of notice provided by the filing officer to file an assuming office statement, is not deemed to have assumed office or left office, provided he or she did not make or participate in the making of, or use his or her position to influence any decision and did not receive or become entitled to receive any form of payment as a result of his or her appointment. Such persons shall not file either an assuming or a leaving office statement. (A) Any person who resigns a position within 30 days of the date of a notice from the filing officer shall do both of the following: 1. File a written resignation with the appointing power; and 2. File a written statement with the filing officer declaring under penalty of perjury that during the period between appointment and resignation he or she did not make, participate in the making, or use the position to influence any decision of the agency or receive, or become entitled to receive, any form of payment by virtue of being appointed to the position. 6.07 CONTENTS OF AND PERIOD COVERED BY STATEMENTS OF ECONOMIC INTERESTS (A) Contents of Initial Statements Initial statements shall disclose any reportable investments, interests in real property and business positions held on the effective date of the code and income received during the 12 months prior to the effective date of the code. (B) Contents of Assuming Office Statements Assuming office statements shall disclose any reportable investments, interests in real property and business positions held on the date of assuming office or on the date of appointment, and income received during the 12 months prior to the date of assuming office or the date of being appointed, respectively. (C) Contents of Annual Statements Annual statements shall disclose any reportable investments, interests in real property, income and business positions held or received during the previous calendar year provided, however, that the period covered by an employee’s first annual statement shall begin on the effective date of the code or the date of assuming office, whichever is later. 6-5 (D) Contents of Leaving Office Statements Leaving office statements shall disclose reportable investments, interest in real property, income and business positions held or received during the period between the closing date of the last statement filed and the date of leaving office. 6.08 MANNER OF REPORTING Statements of economic interest shall be made on forms prescribed by the Fair Political Practices Commission and supplied by the agency, and shall contain the following information: (A) Investments and Real Property Disclosure When an investment or an interest in real property3 is required to be reported4, the statement shall contain the following: 1. A statement of the nature of the investment or interest; 2. The name of the business entity in which each investment is held, and a general description of the business activity in which the business entity is engaged; 3. The address or other precise location of the real property; 4. A statement whether the fair market value of the investment or interest in real property equals or exceeds two thousand dollars ($2,000), exceeds ten thousand dollars ($10,000), exceeds one hundred thousand dollars ($100,000), or exceeds one million dollars ($1,000,000). (B) Personal Income Disclosure When personal income is required to be reported5, the statement shall contain: 3 For the purpose of disclosure only (not disqualification), an interest in real property does not include the principal residence of the filer. 4 Investments and interests in real property which have a fair market value of less than $2,000 are not investments and interests in real property within the meaning of the Political Reform Act. However, investments or interests in real property of an individual include those held by the individual’s spouse and dependent children as well as a pro rata share of any investment or interest in real property of any business entity or trust in which the individual, spouse and dependent children own, in the aggregate, a direct, indirect or beneficial interest of 10 percent or greater. 5 A designated employee’s income includes his or her community property interest in the income of his or her spouse but does not include salary or reimbursement for expenses received from a state, local or federal government agency. 6-6 1. The name and address of each source of income aggregating $500 or more in value or $50 or more in value if the income was a gift, and a general description of the business activity, if any, of each source; 2. A statement whether the aggregate value of income from each source, or in the case of a loan, the highest amount owed to each source, was one thousand dollars ($1,000) or less, greater than one thousand dollars ($1,000), greater than ten thousand dollars ($10,000), or greater than one hundred thousand dollars ($100,000); 3. A description of the consideration, if any, for which the income was received; 4. In the case of a gift, the name, address and business activity of the donor and any intermediary through which the gift was made; a description of the gift; the amount or value of the gift; and the date on which the gift was received. A gift includes forgiveness of a debt or a rebate or discount of a debt owed6; 5. In the case of a loan given or received, the annual interest rate and the security, if any, given for the loan and the term of the loan. 6. Gov. Code section 82030 defines income and specifically excludes: (a) Any loan or loans from a commercial lending institution which are made in the lender's regular course of business on terms available to members of the public without regard to official status. (b) Any loan from or payments received on a loan made to an individual's spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, uncle, aunt, or first cousin, or the spouse of any such person, provided that a loan or loan payment received from any such person shall be considered income if he or she is acting as an agent or intermediary for any person not covered by this paragraph. (c) Any indebtedness created as part of a retail installment or credit card transaction if made in the lender's regular course of business on terms 6 2 Cal. Code of Regs. section 18940 6-7 available to members of the public without regard to official status. (C) Business Entity Income Disclosure When income of a business entity, including income of a sole proprietorship, is required to be reported7, the statement shall contain: 1. The name, address, and a general description of the business activity of the business entity; 2. The name of every person from whom the business entity received payments if the filer’s pro rata share of gross receipts from such person was equal to or greater than $10,000. (D) Business Position Disclosure When business positions are required to be reported, a designated employee shall list the name and address of each business entity in which he or she is a director, officer, partner, trustee, employee or in which he or she holds any position of management, a description of the business activity in which the business entity is engaged, and the designated employee’s position with the business entity. (E) Acquisition or Disposal During Reporting Period In the case of an annual or leaving office statement, if an investment or an interest in real property was partially or wholly acquired or disposed of during the period covered by the statement, the statement shall contain the date of acquisition or disposal. 6.09 PROHIBITION ON RECEIPT OF HONORARIA A. No designated public official shall accept any honorarium from any source if the member or employee would be required to report the receipt of income or gifts from that source on his or her statement of economic interests. Subdivisions (a), (b), and (c) of Government Code Section 89501 shall apply to the prohibitions in this section. 7 Income of a business entity is reportable if the direct, indirect, or beneficial interest of the filer and the filer’s spouse in the business entity aggregates a 10 percent or greater interest. In addition, the disclosure of persons who are clients or customers of a business entity is required only if the clients or customers are within one of the disclosure categories of the filer. 6-8 This section shall not limit or prohibit payments, advances, or reim-bursements for travel and related lodging and subsistence authorized by Government Code section 89506. 6.10 PROHIBITION ON RECEIPT OF GIFTS IN EXCESS OF AMOUNT ESTABLISHED BY LAW8 A. No designated public official shall accept gifts with a total value of more than the maximum amount established by law, in any calendar year, from any single source, if the member or employee would be required to report the receipt of income or gifts from that source on his or her statement of economic interests. Subdivisions (e), (f), and (g) of Government Code section 89503 shall apply to the prohibitions in this section. 6.11 LOANS TO PUBLIC OFFICIALS A. No elected officer of a state or local government agency shall, from the date of his or her election to office through the date that he or she vacates office, receive a personal loan from any officer, employee, member, or consultant of the state or local government agency in which the elected officer holds office or over which the elected officer’s agency has direction and control. B. No public official who is exempt from the state civil service system pursuant to subdivisions (c), (d), (e), (f), and (g) of Section 4 of Article VII of the Constitution shall, while he or she holds office, receive a personal loan from any officer, employee, member, or consultant of the state or local government agency in which the public official holds office or over which the public official’s agency has direction and control. This subdivision shall not apply to loans made to a public official whose duties are solely secretarial, clerical, or manual. C. No elected officer of a state or local government agency shall, from the date of his or her election to office through the date that he or she vacates office, receive a personal loan from any person who has a contract with the state or local government agency to which that elected officer has been elected or over which that elected officer’s agency has direction and control. This subdivision shall not apply to loans made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card 8 Designated Persons are prohibited from accepting gifts from any single source in a calendar year with a total value in excess of designated amounts. See Govt. Code § 89503, sub-divisions (e), (f) and (g). [Note: Pursuant to Gov. Code § 89503(f), the FPPC adjusts the gift limit every odd-numbered year to reflect changes in the Consumer Price Index; therefore, the $470 limit adopted by the FPPC in January of 2017 will be updated in January 2019 and every odd year thereafter, until further notice. See also 2 CCR § 18940.2] 6-9 transaction, if the loan is made or the indebtedness created in the lender’s regular course of business on terms available to members of the public without regard to the elected officer’s official status. D. No public official who is exempt from the state civil service system pursuant to subdivisions (c), (d), (e), (f), and (g) of Section 4 of Article VII of the Constitution shall, while he or she holds office, receive a personal loan from any person who has a contract with the state or local government agency to which that elected officer has been elected or over which that elected officer’s agency has direction and control. This subdivision shall not apply to loans made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card transaction, if the loan is made or the indebtedness created in the lender’s regular course of business on terms available to members of the public without regard to the elected officer’s official status. This subdivision shall not apply to loans made to a public official whose duties are solely secretarial, clerical, or manual. E. This section shall not apply to the following: 1. Loans made to the campaign committee of an elected officer or candidate for elective office. 2. Loans made by a public official’s spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in- law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or the spouse of any such persons, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this section. 3. Loans from a person which, in the aggregate, do not exceed five hundred dollars ($500) at any given time. 4. Loans made, or offered in writing, before January 1, 1998. 6.12 LOAN TERMS A. Except as set forth in subdivision (B), no elected officer of a state or local government agency shall, from the date of his or her election to office through the date he or she vacates office, receive a personal loan of five hundred dollars ($500) or more, except when the loan is in writing and clearly states the terms of the loan, including the parties to the loan agreement, date of the loan, amount of the loan, term of the loan, date or dates when payments shall be due on the loan and the amount of the payments, and the rate of interest paid on the loan. B. This section shall not apply to the following types of loans: 1. Loans made to the campaign committee of the elected officer. 6-10 2. Loans made to the elected officer by his or her spouse, child, parent, grandparent, grandchild, brother, sister, parent-in- law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or the spouse of any such person, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this section. 3. Loans made, or offered in writing, before January 1, 1998. C. Nothing in this section shall exempt any person from any other provision of Title 9 of the Government Code. 6.13 PERSONAL LOANS A. Except as set forth in subdivision (B), a personal loan received by any designated public official shall become a gift to the designated public official for the purposes of this section in the following circumstances: 1. If the loan has a defined date or dates for repayment, when the statute of limitations for filing an action for default has expired. 2. If the loan has no defined date or dates for repayment, when one year has elapsed from the later of the following: a. The date the loan was made. b. The date the last payment of one hundred dollars ($100) or more was made on the loan. c. The date upon which the debtor has made payments on the loan aggregating to less than two hundred fifty dollars ($250) during the previous 12 months. B. This section shall not apply to the following types of loans: 1. A loan made to the campaign committee of an elected officer or a candidate for elective office. 2. A loan that would otherwise not be a gift as defined in this title. 3. A loan that would otherwise be a gift as set forth under subdivision (A), but on which the creditor has taken reasonable action to collect the balance due. 4. A loan that would otherwise be a gift as set forth under subdivision (A), but on which the creditor, based on reasonable business considerations, has not undertaken collection action. Except in a criminal action, a creditor who claims that a loan is not a gift 6-11 on the basis of this paragraph has the burden of proving that the decision for not taking collection action was based on reasonable business considerations. 5. A loan made to a debtor who has filed for bankruptcy and the loan is ultimately discharged in bankruptcy. C. Nothing in this section shall exempt any person from any other provisions of Title 9 of the Government Code. 6.14 DISQUALIFICATION No designated employee shall make, participate in making, or in any way attempt to use his or her official position to influence the making of any governmental decision which he or she knows or has reason to know will have a reasonably foreseeable material financial effect, distinguishable from its effect on the public generally, on the official or a member of his or her immediate family or on: (A) Any business entity in which the designated employee has a direct or indirect investment worth $2,000 or more; (B) Any real property in which the designated employee has a direct or indirect interest worth $2,000 or more; (C) Any source of income, other than gifts and other than loans by a commercial lending institution in the regular course of business on terms available to the public without regard to official status, aggregating $500 or more in value provided to, received by or promised to the designated employee within 12 months prior to the time when the decision is made; (D) Any business entity in which the designated employee is a director, officer, partner, trustee, employee, or holds any position of management; or (E) Any donor of, or any intermediary or agent for a donor of, a gift or gifts aggregating to the maximum amount established by law, or more, in value provided to, received by, or promised to the designated employee within 12 months prior to the time when the decision is made. 6.15 LEGALLY REQUIRED PARTICIPATION No designated public official shall be prevented from making or participating in the making of any decision to the extent his or her participation is legally required for the decision to be made. The fact that the vote of a designated public official who is on a voting 6-12 body is needed to break a tie does not make his or her participation legally required for purposes of this section. 6.16 DISQUALIFICATION OF STATE OFFICERS AND EMPLOYEES In addition to the general disqualification provisions of Section 6.14, no state administrative official shall make, participate in making, or use his or her official position to influence any governmental decision directly relating to any contract where the state administrative official knows or has reason to know that any party to the contract is a person with whom the state administrative official, or any member of his or her immediate family has, within 12 months prior to the time when the official action is to be taken: (A) Engaged in a business transaction or transactions on terms not available to members of the public, regarding any investment or interest in real property; or (B) Engaged in a business transaction or transactions on terms not available to members of the public regarding the rendering of goods or services totaling in value $1000 or more. 6.17 DISCLOSURE OF DISQUALIFYING INTEREST When a designated public official determines that he or she should not make a governmental decision because he or she has a disqualifying interest in it, the determination not to act may be accompanied by disclosure of the disqualifying interest. 6.18 ASSISTANCE OF THE COMMISSION AND COUNSEL Any designated employee who is unsure of his or her duties under this code may request assistance from the Fair Political Practices Commission pursuant to Government Code Section 83114 and 2 CCR Sections 18329 and 18329.5 or from the attorney for his or her agency, provided that nothing in this section requires the attorney for the agency to issue any formal or informal opinion. 6.19 VIOLATIONS This code has the force and effect of law. Designated employees violating any provision of this code are subject to the administrative, criminal, and civil sanctions provided in the Political Reform Act, Government Code Sections 81000 – 91015. In addition, a decision in relation to which a violation of the disqualification provisions of this code or of Government Code Section 87100 or 87450 has occurred may be set aside as void pursuant to Government Code Section 91003. 6-13 6.20 PROHIBITED TRANSACTIONS Members of the Board of Directors and Designated Employees shall comply with the Prohibited Transactions policy, annexed hereto as Exhibit A, pursuant to California Government Code Sections 1090, et seq. 6.21 INCOMPATIBLE ACTIVITIES Members of the Board of Directors, District officers, and all other District employees shall comply with the Incompatible Activities policy, annexed hereto as Exhibit B, pursuant to California Government Code Sections 1126, et seq. 6-14 APPENDIX OTAY WATER DISTRICT CONFLICT OF INTEREST CODE DESIGNATED POSITIONS DESIGNATED EMPLOYEES’ TITLE OR FUNCTION__ DISCLOSURE CATEGORIES ASSIGNED General Manager 1, 2, 3, 4, 5, 6 District Secretary 6 Assistant Chief of Finance 1, 2, 5, 6, 7 Chief of Administrative Services 1, 2, 3, 4, 5, 6, 7 Chief Financial Officer 1, 2, 5, 6, 7 Chief of Engineering 1, 2, 3, 4, 6, 7 Chief of Water Operations 1, 2, 3, 4, 6, 7 Associate Civil Engineer 1, 2, 3, 4, 7 Communications Officer 6 Customer Service Manager 2, 5, 7 Environmental Compliance Specialist 1, 2, 3, 4, 7 Engineering Manager 1, 2, 3, 4, 7 Field Services Manager 1, 2, 3, 4, 7 Finance Manager 2, 5, 7 GIS Manager 3, 6, 7 Human Resources Manager 3, 6 IT Manager 3, 6, 7 Network Engineer 3, 6, 7 Purchasing and Facilities Manager 2, 6 6-15 Safety and Security Specialist 1, 2, 3, 4, 6 Senior Procurement and Contracting Analyst 6 Senior Civil Engineer 1, 2, 3, 4, 7 System Operations Manager 1, 2, 3, 4, 7 Utility Services Manager 1, 2, 3, 4, 7 Consultant/New Positions9 1, 2, 3, 4, 5, 6 District Officials who manage public investments, as defined by 2 Cal. Code of Regs. § 18701 (b) are not subject to the District's Conflict of Interest Code except with respect to its disqualification provisions. They must file disclosure statements under Government Code § 87200 et seq. [2 CCR § 18730(b)(3)] These positions are listed above for informational purposes only. Individuals holding the positions listed below are officials who manage public investments and who must file their disclosure statements under Government Code Section 87200: Members of the Board of Directors General Manager Chief Financial Officer Asst. Chief Financial Officer Financial Consultants Individuals holding the above-listed positions may contact the Fair Political Practices Commission for assistance or written advice regarding their filing obligations if they believe that their position has been categorized incorrectly. The Fair Political Practices Commission makes the final determination whether a position is covered by Government Code Section 87200. 9 Consultants/New Positions are included in the list of designated positions and shall disclose pursuant to the broadest disclosure category in the code, subject to the following limitation: The General Manager may determine in writing that a particular consultant or new position, although a “designated position,” is hired to perform a range of duties that is limited in scope and, thus, not required to fully comply with the disclosure requirements in this section. Such written determination shall include a description of the consultant’s or new position’s duties and, based upon that description, a statement of the extent of the disclosure requirements. The written determination is a public record and shall be retained for public inspection in the same manner and location as this Conflict of Interest Code (Gov. Code section 81008) Consultants are required to file disclosure statements where they: (a) conduct research and arrive at conclusions with respect to rendition of information, advice, recommendation or counsel independent of control and direction of the agency or any agency official other than normal contract monitoring; and (b) possess no authority with respect to any agency decision beyond the rendition of information, advice, recommendation or counsel. 6-16 Government Code Section 87200 requires that individuals holding the above-listed positions shall, each year at a time specified by commission regulations, file a statement disclosing their investments, their interests in real property and their income during the period since the previous statement filed. The statement shall include any investments and interest in real property held at any time during the period covered by the statement, whether or not they are still held at the time of filing. 6-17 APPENDIX, CONTINUED DISCLOSURE CATEGORIES The disclosure categories listed below identify the types of investments, business entities, sources of income, or real property which the designated employee must disclose for each disclosure category to which he or she is assigned. Category 1: All investments and business positions in, and sources of income from, all business entities that do business or own real property in the District, plan to do business or own real property in the District within the next year or have done business or owned real property in the District within the past two years. Category 2: All interests in real property which are located in whole or in part within, or not more than two (2) miles outside the boundaries of the District. Category 3: All investments and business positions in, and sources of income from, business entities subject to the regulatory, permit or licensing authority of the Designated Employee’s Department, will be subject to such authority within the next year or have been subject to such authority within the past two years. Category 4: All investments, business positions, and sources of income from, business entities that are engaged in land development, construction or the acquisition or sale of real property in the District, plan to engage in such activities in the District within the next year or have engaged in such activities in the District within the past two years. Category 5: All investments and business positions in, and sources of income from, business entities that are banking, savings and loan or other financial institutions. Category 6: All investments and business positions in, and sources of income from, business entities that provide services, supplies, materials, machinery, or equipment of a type purchased, leased, used, or administered by the District. Category 7: All investments and business positions in, and sources of income from, business entities that provide services, supplies, materials, machinery, or equipment of a type purchased, leased, used, or administered by the Designated Employee’s Department. 6-18 EXHIBIT A Prohibited Transactions for Specified Personnel Members of the Board of Directors (“Members”) shall comply with this Prohibited Transactions policy pursuant to California Government Code §§ 1090, et seq. Members shall not be financially interested in any contract made by them in their official capacity, or by any body or board of which they are members. Members shall not be purchasers at any sale or vendors at any purchase made by them in their official capacity. Members shall not be deemed to be interested in a contract entered into by a body or board of which they are members if the Member has only a remote interest in the contract and if the fact of that interest is disclosed to the body or board of which the Member is a member and noted in its official records, and thereafter the body or board authorizes, approves, or ratifies the contract in good faith by a vote of its membership sufficient for the purpose without counting the vote or votes of the Board of Directors member with the remote interest. “Remote interest” shall be defined as in California Government Code § 1091(b). Members shall not be considered to be financially interested in a contract if their interest is including, but not limited to, any of the following (Government Code § 1091.5): 1. That of an officer in being reimbursed for his/her actual and necessary expenses incurred in the performance of an official duty; 2. That of a recipient of public services generally provided by the public body or board of which he/she is a member, on the same terms and conditions as if he or she were not a member of the board; 3. That of a landlord or tenant of the contracting party if such contracting party is the federal government or any federal department or agency, this state or an adjoining state, any department or agency of this state or an adjoining state, any county or city of this state or an adjoining state, or an public corporation or special, judicial or other public district of this state or an adjoining state unless the subject matter of such contract is the property in which such officer or employee has such interest as landlord or tenant in which even his/her interest shall be deemed a remote interest within the meaning of, and subject to, the provisions of Government Code 1091; 6-19 4. That of a spouse of an officer or employee of a public agency if his/her spouse’s employment or office-holding has existed for at least one year prior to his/her election or appointment; 5. That of a non-salaried member of a nonprofit corporation, provided that such interest is disclosed to the board at the time of the first consideration of the contract, and provided further that such interest is noted in its official records; 6. That of a non-compensated officer of a nonprofit, tax-exempt corporation, which, as one of its primary purposes, supports the functions of the board or to which the board has legal obligation to give particular consideration, and provided further that such interest is noted in its official records; For purposes of this paragraph, an officer is “noncompensated” even though he or she receives reimbursement from the nonprofit, tax-exempt corporation for necessary travel and other actual expenses incurred in performing the duties of his or her office. 7. That of compensation for employment with a governmental agency, other than the governmental agency that employs the officer or employee, provided that the interest is disclosed to the board at the time of consideration of the contract, and provided further that the interest is noted in its official records; 8. That of an attorney of the contracting party of that of an owner, officer, employee or agent of a firm which renders, or has rendered, service to the contracting party in the capacity of stockbroker, insurance agent, insurance broker, real estate agent, or real estate broker if these individuals have not received and will not receive remuneration, consideration, or a commission as a result of the contract and if these individuals have an ownership interest of less than 10 percent in the law practice or firm, stock brokerage firm, insurance firm or real estate firm. In addition, Members shall not be deemed to be interested in a contract made pursuant to competitive bidding under a procedure established by law if their sole interest is that of an officer, director, or employee of a bank or savings and loan association with which a party to the contract has the relationship of borrower or depositor, debtor or creditor (Government Code § 1091.5). Authority: California Government Code §§ 1090, et seq. 6-20 EXHIBIT B Incompatible Activities Policy District officers, members of the Board of Directors, and all other District employees (collectively, “district personnel”) shall comply with this Incompatible Activities policy pursuant to California Government Code §§ 1125, et seq. District personnel shall not engage in any employment, activity, or enterprise for compensation which is inconsistent, incompatible, in conflict with, or inimical to his or her duties as a member of the Board of Directors, or with the duties, functions, or responsibilities of his or her appointing power or the agency by which he or she is employed. The outside employment, activity, or enterprise of district personnel is prohibited if it: (1) involves the use for private gain or advantage of his or her local District time, facilities, equipment and supplies; or the badge, uniform, prestige, or influence of his or her local District office or employment or, (2) involves receipt or acceptance by district personnel of any money or other consideration from anyone other than the District for the performance of an act which district personnel, if not performing such act, would be required or expected to render in the regular course or hours of their local District employment or as a part of their duties as a local District officer or employee or, (3) involves the time demands as would render performance of his or her duties as a local district personnel member less efficient. Nothing in this policy shall be interpreted to prohibit any outside employment, activity, counsel, or enterprise on behalf of another governmental entity, subject to common law and professional conflict of interest rules. Copies of this regulation shall be posted in prominent places at the District Office. District personnel who violate this regulation may be subject to discipline as set forth in the applicable Code of Ordinances and Policies. Board of Directors members who violate this section may be subject to censure. Disciplinary appeals by district personnel shall be handled pursuant to applicable Code of Ordinances and Policies. Authority: California Government Code §§ 1125, et seq. STAFF REPORT TYPE MEETING: Regular Board Meeting MEETING DATE: October 7, 2020 SUBMITTED BY: Jose Martinez, General Manager W.O./G.F. NO: DIV. NO. APPROVED BY: Susan Cruz, District Secretary Jose Martinez, General Manager SUBJECT: Board of Directors 2020 Calendar of Meetings GENERAL MANAGER’S RECOMMENDATION: At the request of the Board, the attached Board of Director’s meeting calendar for 2020 is being presented for discussion. PURPOSE: This staff report is being presented to provide the Board the opportunity to review the 2020 Board of Director’s meeting calendar and amend the schedules as needed. COMMITTEE ACTION: N/A ANALYSIS: The Board requested that this item be presented at each meeting so they may have an opportunity to review the Board meeting calendar schedule and amend it as needed. STRATEGIC GOAL: N/A FISCAL IMPACT: None. LEGAL IMPACT: None. Attachment: Calendar of Meeting for 2020 G:\UserData\DistSec\WINWORD\STAFRPTS\Board Meeting Calendar 10-07-20.doc AGENDA ITEM 10a Board of Directors, Workshops and Committee Meetings (Via Teleconference) 2020 Regular Board Meetings: Special Board or Committee Meetings (3rd Wednesday of Each Month or as Noted) January 8, 2020 February 5, 2020 March 11, 2020 April 1, 2020 May 6, 2020 June 3, 2020 July 1, 2020 August 5, 2020 September 2, 2020 October 7, 2020 November 4, 2020 December 2, 2020 January 22, 2020 February 19, 2020 March 18, 2020 April 22, 2020 May 20, 2020 June 17, 2020 July 22, 2020 August 19, 2020 September 23, 2020 October 21, 2020 November 18, 2020 December 16, 2020 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 7, 2020 SUBMITTED BY: Melissa Apuy, Senior Accountant PROJECT: DIV. NO. All APPROVED BY: Joseph R. Beachem, Chief Financial Officer Jose Martinez, General Manager SUBJECT: Fiscal Year 2020 Board of Directors’ Expenses GENERAL MANAGER’S RECOMMENDATION: This is an informational item only. COMMITTEE ACTION: Please see Attachment A. PURPOSE: To present the Board of Directors’ expenses for Fiscal Year 2020. ANALYSIS: The California Government Code Section 53065.5 requires special districts, at least annually, to disclose any reimbursement paid by a district within the immediately preceding fiscal year. In addition, the District’s Code of Ordinances Policy 8 echoes this requirement. To meet these requirements, staff prepares and presents the Board of Directors’ expenses on an annual basis. The reimbursements and per diems paid by the District for Fiscal Year 2020 are summarized in the table on the following page and detailed in Attachments C-H. AGENDA ITEM 11a 2 The above table displays the expenses by category and by Director. The expenses totaled $83,474.20 with $61,560, or 73.7%, of the expenses stemming from the Director’s fees. In response to the COVID-19 pandemic, the District’s Board temporarily increased its meeting frequency from monthly to weekly, or bi-weekly, between March and May. The purpose of the increased frequency was to stay abreast of the District’s emergency response to the pandemic and the constantly changing pandemic environment. As the environment surrounding the pandemic stabilized the Board returned to the normal monthly meeting schedule in June 2020. FISCAL IMPACT: None. STRATEGIC GOAL: Prudently manage District funds. LEGAL IMPACT: Compliance with state law and District Code of Ordinance Policy 8. Attachments: Attachment A Committee Action Attachment B Directors’ Expenses and Per Diems Attachment C-H Directors’ Expenses Detail 3 ATTACHMENT A SUBJECT/PROJECT: Fiscal Year 2020 Board of Directors’ Expenses COMMITTEE ACTION: The Finance and Administration Committee (Committee) reviewed this item at a meeting held on September 22, 2020 and the following comments were made: • Staff presented the Board of Directors’ expenses for fiscal year 2020. • Information was reviewed from the staff report. • In response to an inquiry from the Committee, staff indicated that the total Board of Directors expenses for last fiscal year was approximately $71,000. • It was noted that because of the COVID-19 pandemic, the board increased the number of special board meetings to monitor the status and any impacts the pandemic might have on District operations. Additionally, the District held special meetings for the recruitment of a new general manager. The total Director’s fees related to these meetings is approximately $10,640 ($7,600 for COVID-19 related meetings and $3,040 for the recruitment of a new general manager). Upon completion of the discussion, the committee supported presentation to the full board as an informational item. BOARD OF DIRECTORS’ EXPENSES AND PER DIEMS Board of Directors Meeting October 7, 2020 ATTACHMENT B California Government Code Section 53065.5 and Otay Water District’s Code of Ordinances Policy 8 require that staff present the Expenses and Per Diems for the Board of Directors on an annual basis: •Fiscal Year 2020. •The expenses are shown by Board member and expense type. •This presentation is in alphabetical order. •This information was presented to the Finance and Administration Committee on September 22, 2020. OTAY WATER DISTRICT BOARD EXPENSES July 1, 2019 -June 30, 2020 Croucher Gastelum Robak Smith Thompson Total Business Meetings $ 30.00 $ 772.00 $ 510.36 $ 169.32 $ 600.60 $ 2,082.28 Director's Fees 9,272.00 14,592.00 14,136.00 9,272.00 14,288.00 61,560.00 Mileage Business 100.88 1,795.36 715.08 353.20 770.48 3,735.00 Mileage Commuting 31.05 239.22 18.50 332.52 488.54 1,109.83 Conferences and Seminars -1,571.14 1,324.00 -20.00 2,915.14 Travel -4,313.70 5,767.03 -1,991.22 12,071.95 Community Events ------ Total $ 9,433.93 $ 23,283.42 $ 22,470.97 $ 10,127.04 $ 18,158.84 $ 83,474.20 ATTACHMENT C OTAY WATER DISTRICT ADMINISTRATIVE EXPENSES -BOARD JULY 1, 2019 -JUNE 30, 2020 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Total GARY D. CROUCHER (DETAILED IN ATTACHMENT D) 5214 Business Meetings $ $ $ $ $ 30.00 $ $ $ $ $ $ $ $ 30.00 5281 Director's Fees 304.00 304.00 456.00 608.00 608.00 304.00 912.00 608.00 1,368.00 1,520.00 1,520.00 760.00 9,272.00 5211 Mileage -Business 17.40 11.60 5.18 24.15 21.85 10.35 10.35 100.88 5211 Mileage -Commuting 20.70 6.90 3.45 31.05 5213 Seminars and Conferences 5212 Travel 5222 Community Events Total $ 304.00 $321.40 $467.60 $608.00 $ 638.00 $304.00 $ 937.88 $ 639.05 $ 1,393.30 $ 1,520.00 $1,530.35 $770.35 $ 9,433.93 HECTOR GASTELUM (DETAILED IN ATTACHMENT E) 5214 Business Meetings $ 120.00 $30.00 $$ 45.00 $367.00 $$ 40.00 $ 170.00 $ $ $ $ $ 772.00 5281 Director's Fees 1,520.00 1,368.00 1,520.00 1,520.00 1,368.00 1,368.00 1,064.00 1,520.00 1,368.00 912.00 760.00 304.00 14,592.00 5211 Mileage -Business 356.12 131.08 314.94 118.32 136.88 472.12 93.40 146.05 26.45 1,795.36 5211 Mileage -Commuting 31.32 41.76 10.44 20.88 31.32 51.75 41.40 10.35 239.22 5213 Seminars and Conferences 1,230.00 216.14 125.00 1,571.14 5212 Travel 204.12 213.68 310.66 328.01 3,257.23 4,313.70 5222 Community Events Total s 2,027.44 s 1,774.96 s 2,059.06 s 1,704.20 3,443.86 s 2,168.13 s 1,249.15 s 5,350.82 1,404.80 s 912.00 s 760.00 $ 429.00 $ 23,283.42 MARKROBAK(DETAILED IN ATTACHMENT F) 5214 Business Meetings $ 65.00 $ 30.00 $45.00 $ 45.00 $165.36 $$ 40.00 $ 120.00 $$ $ $ 510.36 5281 Director's Fees 912.00 760.00 1,368.00 1,216.00 1,368.00 1,216.00 1,064.00 1,368.00 1,520.00 1,368.00 1,216.00 760.00 14,136.00 5211 Mileage -Business 78.30 33.64 80.04 108.46 103.24 103.82 53.48 94.30 59.80 715.08 5211 Mileage -Commuting 2.32 2.32 2.32 2.32 2.32 2.30 2.30 2.30 18.50 5213 Seminars and Conferences 725.00 599.00 1,324.00 5212 Travel 5,523.31 79.00 164.72 5,767.03 5222 Community Events Total $ 1,057.62 $ 825.96 $7,018.67 $ 1.371.78 $2,363.92 $ 1,398.82 $ 1.159.78 $ 2,348.32 $ 1,582.10 $ 1,368.00 $ 1,216.00 $ 760.00 $ 22,470.97 TIM SMITH (DETAILED IN ATTACHMENT G) 5214 Business Meetings $ 19.46 $$ 54.73 $ 9.73 $ 54.73 $ $ 9.73 $ 20.94 $ $ $ $ $ 169.32 5281 Director's Fees 608.00 912.00 456.00 912.00 608.00 152.00 1,216.00 760.00 1,216.00 912.00 912.00 608.00 9,272.00 5211 Mileage -Business 35.96 51.04 44.08 91.64 61.48 18.40 33.35 17.25 353.20 5211 Mileage -Commuting 27.84 41.76 13.92 41.76 13.92 13.92 110.40 55.20 13.80 332.52 5213 Seminars and Conferences 5212 Travel 5222 Community Events Total $ 691.26 $1,004.80 $568.73 $1,055.13 $ 738.13 $ 165.92 $ 1,354.53 $869.49 $1,247.05 $ 912.00 $ 9I2.00 $608.00 $ 10,127.04 OTAY WATER DISTRICT ADMINISTRATIVE EXPENSES -BOARD JULY 1, 2019 -JUNE 30, 2020 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Total MITCHELL THOMPSON (DETAILED IN ATTACHMENT H) 5214 Business Meetings $ 75.00 $ $ l19.17 $ 20.00 $ 16.43 s 300.00 $ $ 50.00 $ 20.00 $ $ $ $ 600.60 5281 Director's Fees 912.00 1,520.00 1,216.00 1,520.00 1,216.00 1,064.00 1,368.00 1,064.00 1,216.00 1,520.00 1,216.00 456.00 14,288.00 52]] Mileage -Business 81.20 73.66 223.30 93.38 109.04 32.48 51.04 75.90 30.48 770.48 52]! Mileage -Commuting 45.24 67.86 30.16 75.40 75.40 15.08 104.65 44.85 29.90 488.54 5213 Seminars and Conferences 20.00 20.00 5212 Travel 462.45 220.30 1,308.47 1,991.22 5222 Community Events Total $ 1,113.44 $ 2,123.97 $ 1,808.93 $ 1,708.78 $ 1,416.87 $ 2,720.03 $ 1,543.69 $ 1,234.75 $ 1,296.38 $ 1,520.00 $ 1,216.00 $ 456.00 $ 18,158.84 TOTALS: 5214 Business Meetings $ 279.46 $ 60.00 $ 218.90 $ 119.73 $ 633.52 $ 300.00 $ 89.73 $ 360.94 $ 20.00 $ $ $ $ 2,082.28 5281 Director's Fees 4,256.00 4,864.00 5,016.00 5,776.00 5,168.00 4,104.00 5,624.00 5,320.00 6,688.00 6,232.00 5,624.00 2,888.00 61,560.00 5211 Mileage -Business 551.58 306.82 673.96 411.80 410.64 608.42 221.50 373.75 155.83 10.35 10.35 3,735.00 5211 Mileage -Commuting 106.72 153.70 56.84 140.36 122.96 29.00 289.80 150.65 59.80 1,109.83 5213 Seminars and Conferences 1,955.00 20.00 815.14 125.00 2,915.14 5212 Travel 666.57 5,957.29 310.66 1,715.48 3,421.95 12,071.95 5222 Community Events Total $ 5,193.76 $ 6,051.09 $ 11.922.99 $ 6.447.89 $ 8,600.78 $ 6,756.90 $ 6,US.03 $ 10,442.43 $ 6,923.63 $ 6,232.00 $ 5,634.35 $ 3,023.35 $ 83,474.20 DIRECTOR'S NAME CROUCH GARY _R�o_w_La�b�e~ls�---�D�a=te� Descriptions Director's Fee 7/12/2019 MEETING WITH DIR SMITH & GM WATTON TO DISCUSS CWA MATTERS 8/15/2019 MEETING WITH DIR SMITH & GM WATTON TO DISCUSS CWA MATTERS 8/23/2019 E&O COMMITTEE MEETING . Director's Fee Total Business meetings Business meetings Mileage -Business Mileage -Business Mileage Commutinq Mileage -Commuting 9/3/2019 QUARTERLY GM MEETING 9/4/2019 MONTHLY BOARD MEETING 9/5/2019 MEETING WITH BOARD PRESIDENT 7/3/2019 MONTHLY BOARD MEETING 10/2/2019 MONTHLY BOARD MEETING 10/16/2019 MEETING WITH DIR SMITH & GM WATTON TO DISCUSS CWA MATTERS 10/23/2019 ENGINEERING & OPERATIONS COMMITTEE MTG 11/6/2019 MONTHLY BOARD MEETING 11/7/2019 GM ADHOC MEETING -RECRUITMENT 11/21/2019 QUARTERLY CSDA MEETING 11/18/2019 CWA MATTERS MEETING 11/22/2019 GM ADHOC MEETING -RECRUITMENT 12/16/2019 HARASSMENT PREVENTION MANDATORY TRAINING 12/18/2019 GM ADHOC MEETING -RECRUITMENT 1/6/2020 GM ADHOC MEETING -RECRUITMENT 1/8/2020 CLOSED SESSION -LEGAL AND GM INPUT 1/16/2020 SPECIAL BOARD MTG 1/27/2020 OWD SPECIAL BOARD MEETING -DISCUSS GM RECRUITMENT; CWA MEETING MATTERS 1/29/2020 OWD SPECIAL BOARD MEETING -GM RECRUITMENT -CANDIDATE INTERVIEWS 1/31/2020 BOARD AGENDA REVIEW MEETING 2/5/2020 OWD REGULAR MONTHLY BOARD MEETING 2/13/2020 AGENDA BRIEFING WITH GM WATTON & MARTINEZ FOR FEB COMMITTEE MEETINGS 2/19/2020 EO & WR COMMITTEE BOARD AGENDA REVIEW 3/11/2020 OWD REGULAR MONTHLY BOARD MEETING 3/16/2020 EMERGENCY BOARD MTG -COVID19 IMPACTS ON DISTRICT OPERATIONS 3/20/2020 SPECIAL BOARD MTG -UPDATE ON COVID19 IMPACTS ON DISTRICT'S OPERATIONS 3/23/2020 SPECIAL BOARD MTG -UPDATE ON COVID19 IMPACTS ON DISTRICT'S OPERATIONS 3/25/2020 SPECIAL BOARD MTG -UPDATE ON COVID19 IMPACTS ON DISTRICT'S OPERATIONS 4/1/2020 OWD REGULAR MONTHLY BOARD MEETING 4/8/2020 SPECIAL BOARD MTG -UPDATE ON COVID19 IMPACTS ON DISTRICT'S OPERATIONS 4/15/2020 SPECIAL BOARD MTG -UPDATE ON COVID19 IMPACTS ON DISTRICT'S OPERATIONS 4/22/2020 SPECIAL BOARD MTG -UPDATE ON COVID19 IMPACTS ON DISTRICT'S OPERATIONS 4/29/2020 SPECIAL BOARD MTG -BUDGET WORKSHOP 5/6/2020 OWD REGULAR MONTHLY BOARD MEETING 5/14/2020 COMMITTEE AGENDA BRIEFING WITH GM MARTINEZ FOR MAY COMMITTEE MTGS 5/20/2020 SPECIAL BOARD MTG -UPDATE ON COVID19 IMPACTS ON DISTRICT'S OPERATIONS 2/12/2020 PRESENTED WATER ISSUES AT MEXICAN AMERICAN BUS PROFESSIONAL ASS'N MTG 3/18/2020 SPECIAL BOARD MTG -UPDATE ON COVID19 IMPACTS ON DISTRICT'S OPERATIONS 4/7/2020 SDRMA RISK ASSESSMENT ANALYSIS TRAINING 4/9/2020 SDRMA EMERGENCY ACTION PLANS & DISASTER PREPAREDNESS TRAINING 5/1/2020 MEETING WITH GM & COUNSEL RE: CITY OF SD RECYCLED CONTR; BOARD AGENDA BRIEFING 5/5/2020 MEETING WITH GM MARTINEZ AND EMPLOYEE ASS'N REPRESENTATIVES 5/27/2020 BOARD AGENDA BRIEFING WITH GM MARTINEZ AND GEN COUNSELS FOR JUNE BOARD MTG 3/17/2020 EO & WR COMMITTEE BOARD AGENDA REVIEW 4/20/2020 CWA MATTERS MEETING 3/9/2020 BOARD AGENDA REVIEW MEETING 3/27/2020 BOARD AGENDA REVIEW MEETING 4/10/2020 SDRMA INTRODUCTION TO OSHA TRAINING 4/17/2020 COMMITTEE AGENDA BRIEFING WITH GM MARTINEZ FOR APRIL COMMITTEE MTG 5/7/2020 MEETING WITH GM AND COUNSEL RE: HR MATTER 5/19/2020 EO & WR COMMITTEE BOARD AGENDA REVIEW 5/26/2020 CWA MATTERS MEETING 5/22/2020 CORONAVIRUS 101 TRAINING 6/3/2020 OWD REGULAR MONTHLY BOARD MEETING 6/23/2020 CWA MATTERS MEETING 6/8/2020 MEETING WITH GM AND COUNSEL RE: DISTRICT MATTERS 6/9/2020 MEETING WITH GM AND COUNSEL RE: DISTRICT MATTERS 6/12/2020 BOARD AGENDA BRIEFING W/ GM MARTINEZ & GEN COUNSELS FOR JULY BOARD MTG 11/22/2019 CSDA SAN DIEGO CHAPTER REGISTRATION 8/15/2019 MEETING -AUGUST 15, 2019 9/3/2019 MEETING -SEPTEMBER 3, 2019 1/31/2020 MEETINGS -JANUARY 31 2/29/2020 MEETINGS -FEBRUARY 12 & 13 3/31/2020 MEETING -MARCH 9 5/31/2020 MEETING -MAY 27 6/12/2020 MEETING -JUNE 12. 2020 1/16/2020 MEETINGS -JANUARY 6, 8 & 16 1/31/2020 MEETINGS -JANUARY 27 & 29 2/29/2020 MEETINGS -FEBRUARY 5 & 19 3/31/2020 MEETING -MARCH 11 ATTACHMENT D Sum of Amount 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 9 272.00 30.00 30.00 17.40 11.60 5.18 24.15 21.85 10.35 10.35 100.88 13.80 6.90 6.90 3.45 31.05 o_ta,,..._ ______________________________________________ -,---,--:-:--:--:-Grand Total $ 9,433.93 DIRECTOR'S NAME GASTELUM, HECTOR Row Labels Date Business meetings Business meetings Director's Fee Descri tions 8/15/2019 CSDA REGISTRATION 7/30/2019 ACWA REGION WORKSHOP -HUMAN RIGHTS TO WATER REGISTRATION 7/16/2019 COUNCIL OF WATER UTILITIES RSVP 8/22/2019 ACWA REGISTRATION 11/19/2019 COUNCIL OF WATER UTILITIES REGISTRATION 11/26/2019 UABC LUNCH, TIJUANA 10/3/2019 COUNCIL OF WATER UTILITIES REGISTRATION 11/22/2019 REALTOR ASSOCIATION REGISTRATION WATEREUSE ASSOCIATION REGISTRATION 11/14/2019 COUNCIL OF WATER UTILITIES REGISTRATION REGISTRATION FOR CSDA -SD CHAPTER 11/8/2019 JAGUAR AWARD LUNCHEON -SOUTHWESTERN COLLEGE 1/16/2020 COUNCIL OF WATER UTILITIES MEETING 2/19/2020 COUNCIL OF WATER UTILITIES MEETING CSDA SAN DIEGO CHAPTER REGISTRATION 2/24/2020 MABPA LUNCH 8/15/2019 HYDROSTATION LAUNCH 9/4/2019 MONTHLY BOARD MEETING 9/5/2019 MTG WITH JENNIFER PILLSBURY 7/3/2019 MONTHLY BOARD MEETING 7/10/2019 WATEREUSE WEBINAR -REMOVING BARRIERS TO POTABLE REUSE 7/15/2019 LEGISLATIVE ROUNDTABLE WITH SENATOR BRIAN JONES 7/17/2019 AD HOC GM EVALUATION COMMITTEE MEETING 7/18/2019 WATER CONSERVATION GARDEN BOARD MEETING 7/19/2019 SD COUNTY WATER RESILIENCE PORTFOLIO 7/23/2019 FAC&C COMMITTEE MEETING 7/24/2019 HYDROSTATION INTRODUCTION 7/25/2019 AALRR BREAKFAST-LABOR PEACE AGREEMENTS 7/30/2019 ACWA REGION WORKSHOP -HUMAN RIGHTS TO WATER 8/7/2019 MONTHLY BOARD MEETING 8/19/2019 CPR&! COMMITTEE 8/20/2019 COUNCIL OF WATER UTILITIES 9/13/2019 SOUTH COUNTY EDC, 29TH ANNUAL ECONOMIC SUMMIT 9/17/2019 COUNCIL OF WATER UTILITIES 9/25/2019 CHULA VISTA CHAMBER OF COMMERCE POLICY MTG 8/28/2019 CHULA VISTA CHAMBER OF COMMERCE 8/2/2019 WEBINAR WATER REUSE 8/6/2019 ADHOC GM EVALUATION COMMITTEE 9/20/2019 ACWA REGION 8 LEGISLATIVE FORUM -BROOKSIDE GOLF CLUB, PASADENA CA 10/2/2019 MONTHLY BOARD MEETING 10/8/2019 SPECIAL BOARD MTG 10/15/2019 COUNCIL OF WATER UTILITIES 10/16/2019 AB1588 NEWS CONFERENCE 10/18/2019 MWD/CWA STATE WATER PROJECT, BAY DELTA & OROVILLE 10/30/2019 CHULA VISTA CHAMBER OF COMMERCE POLICY MTG OTAY MESA CHAMBER OF COMMERCE DINNER & AWARDS 10/31/2019 WEBINAR WATEREUSE STATUS OF CASADVANCED WATER TREATMENT 10/17/2019 SCEDC & CVCC ELECTED OFFICIALS RECEPTION 11/2/2019 PACIFIC SOUTHWEST ASSOCIATION OF REALTORS 2020 INSTALLATION DINNER 11/5/2019 HARASSMENT PREVENTION MANDATORY TRAINING 11/6/2019 MONTHLY BOARD MEETING 11/19/2019 COUNCIL OF WATER UTILITIES MEETING 11/26/2019 BINATIONAL BORDER CONFERENCE -THE WATER WE SHARE 11/20/2019 WEBINAR: CLOSING THE LOOP WITH NEWATER 8/1/2019 SUEZ ADVANCED SOLUTIONS 8/8/2019 QUARTERLY GM MEETING 9/8/2019 34TH ANNUAL WATER REUSE SYMPOSIUM 9/9/2019 34TH ANNUAL WATER REUSE SYMPOSIUM 9/10/2019 34TH ANNUAL WATER REUSE SYMPOSIUM 9/11/2019 34TH ANNUAL WATER REUSE SYMPOSIUM 10/19/2019 MWD/CWA STATE WATER PROJECT, BAY DELTA & OROVILLE 11/8/2019 SOUTHWEST COLLEGE FOUNDATION 2019 JAGUAR AWARDS LUNCHEON 1/8/2020 OWD REGULAR MONTHLY BOARD MEETING 1/16/2020 OWD SPECIAL BOARD MEETING 1/27/2020 OWD SPECIAL BOARD MTG -GM CANDIDATE REVIEW 1/29/2020 OWD SPECIAL BOARD MTG -GM CANDIDATE INTERVIEWS 11/25/2019 BINATIONAL BORDER CONFERENCE -THE WATER WE SHARE 11/27/2019 QUARTERLY GM MEETING 12/3/2019 ACWA 2019 FALL CONFERENCE 12/4/2019 ACWA 2019 FALL CONFERENCE 12/5/2019 ACWA 2019 FALL CONFERENCE 12/6/2019 ACWA 2019 FALL CONFERENCE 12/9/2019 WEBINAR -AB1234 ETHICS TRAINING 12/10/2019 COLORADO RIVER WATER USERS ASS'N 2019 ANNUAL CONFERENCE 12/11/2019 COLORADO RIVER WATER USERS ASS'N 2019 ANNUAL CONFERENCE ATTACHMENT E Sum of Amount 30.00 75.00 45.00 50.00 45.00 18.00 45.00 80.00 49.00 45.00 30.00 100.00 40.00 40.00 30.00 50.00 772.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 DIRECTOR'S NAME GASTELUM, HECTOR Row Labels Date Director's Fee Director's Fee Total Mileage -Business Mileage -Business Mileage Mileage -Commuting Travel Travel Total Conferences and Seminars Conferences and Seminars Total Grand Total Descri ions 12/12/2019 COLORADO RIVER WATER USERS ASS'N 2019 ANNUAL CONFERENCE 12/13/2019 COLORADO RIVER WATER USERS ASS'N 2019 ANNUAL CONFERENCE 1/21/2020 COUNCIL OF WATER UTILITIES -BUTCHER SHOP; EO & WR COMMITTEE MTG 1/15/2020 CSDA WEBINAR: UNDERSTANDING NEW LAWS 1/28/2020 WATER CONSERVATION GARDEN JPA BOARD MTG 2/3/2020 OWD SPECIAL BOARD MEETING -GM CANDIDATE INTERVIEWS 2/5/2020 OWD REGULAR MONTHLY BOARD MEETING 2/13/2020 OWD QUARTERLY GM MEETING 2/18/2020 COUNCIL OF WATER UTILITIES MTG; CPRL&L COMMITTEE MTG 2/19/2020 STATE OF THE COUNTY ADDRESS -MIDWAY MUSEUM 2/20/2020 SAN DIEGO CSDA QUARTERLY MEETING 2/24/2020 ACWA DC CONFERENCE -TRAVEL DAY 2/25/2020 ACWA DC CONFERENCE 2/26/2020 ACWA DC CONFERENCE 2/27/2020 ACWA DC CONFERENCE 3/11/2020 OWD REGULAR MONTHLY BOARD MEETING 3/12/2020 SPECIAL IMPORTED WATER COMMITTEE MTG AT SDCWA 3/16/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS 3/20/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS 3/23/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS 3/25/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS 3/29/2020 CSDA WEBINAR: ANNUAL EMPLOYMENT LAW UPDATE 3/30/2020 ACWA WEBINAR: COMMUNICATING DURING CRISIS 3/31/2020 CSDA WEBINAR: HOW TO COLLECT UNPAID BILLS 4/1/2020 OWD REGULAR MONTHLY BOARD MEETING 4/8/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS 4/15/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS 4/22/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS 4/28/2020 WATER CONSERVATION GARDEN JPA BOARD MTG 4/29/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS 5/6/2020 OWD REGULAR MONTHLY BOARD MEETING 5/8/2020 MEETING WITH G. CROUCHER AND GM RE: MASKS 5/14/2020 OWD QUARTERLY GM MEETING 5/20/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS 5/21/2020 CSDA QUARTERLY MEETING 6/3/2020 OWD REGULAR MONTHLY BOARD MEETING 6/12/2020 MEETING WITH DIR CROUCHER & D SHINOFF 7/31/2019 MEETINGS -JULY 15, 18, 19, 24, 25, 30 & 31, 2019 8/31/2019 MEETINGS -AUGUST 1, 15, 20 & 28, 2019 9/30/2019 MEETINGS -SEPTEMBER 5, 8, 9, 10, 11, 13, 17, 20 & 25, 2019 10/31/2019 MEETINGS -OCTOBER 5, 15, 16, 17, 18, 19 & 30, 2019 11/30/2019 MEETINGS -NOVEMBER 2, 8, 19, 25, & 26 1/31/2020 MEETINGS -JANUARY 21, 24, 25 & 28 12/31/2019 MEETINGS -DECEMBER 3, 4, 5, 6, 10 & 13 2/29/2020 MEETINGS -FEBRUARY 12, 18, 19, 20, 24, 27 & 4 3/31/2020 MEETING -MARCH 12 1/24/2020 SOAR PARKING 9/4/2019 MEETING -SEPTEMBER 4, 2019 7/31/2019 MEETINGS -JULY 3, 17 , 23, 2019 8/31/2019 MEETINGS -AUGUST 6, 7, 8 & 19, 2019 10/31/2019 MEETINGS -NOVEMBER 2 & 8, 2019 11/30/2019 MEETINGS -NOVEMBER 5, 6 & 27 1/31/2020 MEETINGS -JANUARY 8, 16, 21, 27 & 29 2/29/2020 MEETINGS -FEBRUARY 3, 5, 13, & 18 3/31/2020 MEETING -MARCH 11 9/19/2019 ACWA REGION 8 LEGISLATIVE FORUM LODGING -COURTYARD BY MARRIOTT 8/22/2019 ACWA WORKSHOP LODGING -HAMPTON INN 11/22/2019 CRWUA CONFERENCE -BALLYS HOTEL ADVANCE DEP 12/3/2019 ACWA PARKING 12/10/2019 CRWUA MEALS CRWUA PARKING 2/24/2020 ACWA CONFERENCE MEALS AND TRANSPORTATION 2/25/2020 ACWA CONFERENCE LODGING ACWA CONFERENCE AIRFARE 11/22/2019 ACWA REGISTRATION COLORADO RIVER WATER U REGISTRATION 2/24/2020 REGISTRATION-EASTLAKE EDUCATONAL AND EB H2OVERVIEW 6/30/2020 BIA CONFERENCE FEE ATTACHMENT E Sum of Amount 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 14 592.00 356.12 131.08 314.94 118.32 136.88 75.90 472.12 146.05 26.45 17.50 1,795.36 10.44 31.32 41.76 20.88 31.32 51.75 41.40 10.35 239.22 213.68 204.12 310.66 120.00 163.00 45.01 1,013.62 1,203.81 1 039.80 4 313.70 725.00 505.00 216.14 125.00 1,571.14 $ 23,283.42 DIRECTO 'S NAME ROBAK M El$_ Row Labels Date Descri tions Business meetings 8/15/2019 CSDA REGISTRATION Business meetings 7/16/2019 COUNCIL OF WATER UTILITIES REGISTRATION 9/17/2019 COUNCIL OF WATER UTILITIES REGISTRATION 7/22/2019 CHULA VISTA CHAMBER OF COMMERCE REGISTRATION 10/15/2019 COUNCIL OF WATER UTILITIES REGISTRATION 11/19/2019 COUNCIL OF WATER UTILITIES REGISTRATION 11/22/2019 REALTOR ASSOCIATION MLS REGISTRATION 11/14/2019 CSDA REGISTRATION 1/16/2020 COUNCIL OF WATER UTILITIES MEETING 11/25/2019 SDSU CONFERENCE LUNCH 2/19/2020 COUNCIL OF WATER UTILmES MEETING CSDA SAN DIEGO CHAPTER REGISTRATION 2/24/2020 SAN DIEGO EAST COUNTY Director's Fee 7/12/2019 CHULA VISTA CHAMBER OF COMMERCE BREAKFAST 8/15/2019 CSDA QUARTERLY DINNER 9/3/2019 EAST COUNTY CHAMBER GOVT AFFAIRS & LAND USE COMMITTEE MTG 9/4/2019 MONTHLY BOARD MEETING 7/3/2019 MONTHLY BOARD MEETING 7/15/2019 LEGISLATIVE ROUNDTABLE WITH SENATOR BRIAN JONES 7/23/2019 FAC&C COMMITTEE MEETING 7/24/2019 HYDROSTATION INTRODUCTION 7/16/2019 COUNCIL OF WATER UTILITIES WITH PAT MULROY 8/7/2019 MONTHLY BOARD MEETING 8/12/2019 MEETING WITH SWEETWATER AUTHORITY DIRECTORS RE: SYNERGIES 8/19/2019 PRL&L COMMITTEE MEETING 8/20/2019 FAC&C COMMITTEE MEETING 9/13/2019 SCEDC ECONOMIC SUMMIT 9/17/2019 COUNCIL OF WATER UTILITIES RE: NEW COLORADO RIVER PIPELINE 9/18/2019 FAC&C COMMITTEE MEETING 9/22/2019 2019 SD CHAMBER MISSION TO WASHINGTON DC 9/23/2019 2019 SD CHAMBER MISSION TO WASHINGTON DC 9/24/2019 2019 SD CHAMBER MISSION TO WASHINGTON DC 9/25/2019 2019 SD CHAMBER MISSION TO WASHINGTON DC 10/1/2019 EAST COUNTY CHAMBER GOVT AFFAIRS & LAND USE COMMITTEE MTG 10/2/2019 MONTHLY BOARD MEETING 10/8/2019 SPECIAL BOARD MTG 10/15/2019 COUNCIL OF WATER UTILITIES 10/16/2019 AB1588 NEWS CONFERENCE 10/23/2019 DISCUSS FINANCE & ADMIN COMMITTEE AGENDA ITEMS 10/11/2019 LAFCO SPECIAL DISTRICTS ADVISORY BOARD MTG 10/17/2019 SCEDC ELECTED OFFICIALS RECEPTION 11/2/2019 PSAR INSTALLATION DINNER 11/5/2019 EAST COUNTY CHAMBER GOVT AFFAIRS & INFRASTRUCTURE LAND USE COMMITTEE MTG HARASSMENT PREVENTION MANDATORY TRAINING 11/6/2019 MONTHLY BOARD MEETING 11/7/2019 SAN DIEGO CHAMBER ENERGY & WATER COMMITTEE ENERGY & WATER ISSUE DISC. 11/13/2019 EAST COUNTY CHAMBER STRATEGIC SUMMIT 11/19/2019 COUNCIL OF WATER UTILITIES 11/21/2019 CSDA QUARTERLY DINNER 11/26/2019 REBORDER AT SDSU 1/8/2020 OWD REGULAR MONTHLY BOARD MEETING 1/16/2020 OWD SPECIAL BOARD MTG -GM CANDIDATE REVIEW 1/27/2020 OWD SPECIAL BOARD MTG -GM CANDIDATE REVIEW 1/29/2020 OWD SPECIAL BOARD MTG -GM CANDIDATE REVIEW 12/2/2019 QUARTERLY GM MEETING 12/3/2019 ACWA CONFERENCE BI-ANNUAL MEETING 12/4/2019 ACWA CONFERENCE BI-ANNUAL MEETING 12/5/2019 ACWA CONFERENCE BI-ANNUAL MEETING 12/6/2019 ACWA CONFERENCE BI-ANNUAL MEETING 12/9/2019 FINANCE AND ADMINISTRATION COMMITTEE MEETING 12/19/2019 SDCWA MEETING; EAST REGIONAL CHAMBER HOLIDAY RECEPTION 12/20/2019 LAFCO SPECIAL DISTRICTS ADVISORY BOARD MTG 1/7/2020 EC CHAMBER GOV'T AFFAIRS & INFRASTRUCTURE LAND USE COMMITTEE MTG 1/21/2020 COUNCIL OF WATER UTILITIES MEETING 1/22/2020 FINANCE AND ADMINISTRATION COMMITTEE MEETING -GAVIN NEWSON 2/3/2020 OWD SPECIAL BOARD MTG -GM CANDIDATE INTERVIEWS; ACTIVE SHOOTER TRNG 2/5/2020 OWD REGULAR MONTHLY BOARD MEETING 2/18/2020 FINANCE AND ADMIN COMMITTEE MTG; COUNCIL OF WATER UTILITIES MTG ATTACHMENT F Sum of Amount 30.00 45.00 45.00 20.00 45.00 45.00 80.00 30.00 40.00 10.36 40.00 30.00 50.00 510.36 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 DIRECTOR'S NAME Row labels Director's Fee Director's Fee Total Mileage -Business Mileage -Business Mileage Mileage -Commuting Travel ROBAK,MARK Date Descri tions 2/20/2020 CSDA QUARTERLY DINNER 2/25/2020 SD REGIONAL CHAMBER OF COMMERCE 2020 LEADERSHIP DELEGATION TO SACRAMENTO MTG 2/26/2020 SD REGIONAL CHAMBER OF COMMERCE 2020 LEADERSHIP DELEGATION TO SACRAMENTO MTG 3/11/2020 OWD REGULAR MONTHLY BOARD MEETING 3/12/2020 SDCWA REGIONAL CONVEYANCE PRESENTATION 3/16/2020 FINANCE AND ADMIN COMMITTEE MTG; SPECIAL BOARD MTG RE; COVID-19 RESPONSE 3/20/2020 LAFCO SPECIAL DISTRICTS ADVISORY BOARD MTG; OWD SPECIAL BOARD MTG RE: COVID-19 RESPONSE 3/23/2020 OWD SPECIAL BOARD MTG RE: COVID-19 RESPONSE 3/25/2020 OWD SPECIAL BOARD MTG RE: COVID-19 RESPONSE 4/1/2020 OWD REGULAR MONTHLY BOARD MEETING 4/8/2020 OWD SPECIAL BOARD MEETING RE: VOCID-19 RESPONSE 4/15/2020 OWD SPECIAL BOARD MEETING RE: VOCID-19 RESPONSE 4/22/2020 OWD SPECIAL BOARD MEETING RE: VOCID-19 RESPONSE 4/29/2020 OWD BOARD MEETING -BUDGT WORKSHOP 5/6/2020 OWD REGULAR MONTHLY BOARD MEETING 5/20/2020 MWD IRP PLAN MTG 5/21/2020 CSDA QUARTELY MEETING 2/4/2020 SO COUNTY EDC MONHTLY MEETING 2/10/2020 OWD QUARTERLY GM MEETING; EAST COUNTY CHAMBER OF COMMERCE MTG 2/12/2020 SWEETWATER AD HOC COMMITTEE MEETING 3/3/2020 EAST COUNTY CHAMBER OF COMMERCE GOVT AFFAIRS & INFRUSTRUCTURE COMMITTEE 3/18/2020 OWD SPECIAL BOARD MTG -DISCUSS COVID-19 RESPONSE 4/21/2020 FINANCE AND ADMIN COMMITTEE MTG 4/9/2020 SCEDC MEETING WITH NEW CEO 5/5/2020 EAST COUNTY CHAMBER OF COMMERCE GOVT AFFAIRS & INFRUSTRUCTURE COMMITTEE 5/18/2020 FINANCE AND ADMIN COMMITTEE MTG 5/28/2020 SDCWA MONTHLY BOARD MEETING 5/7/2020 SD CHAMBER SUSTAINABILITY & INDUSTRY COMMITTEE MONTHLY MEETING 5/19/2020 OWD SPECIAL BOARD MEETING RE: COVID-19 RESPONSE 3/2/2020 AD HOC SALT CREET GOLF COURSE COMMITTEE MTG RE: PROPERTY DISPOSillON 3/5/2020 SD CHAMBER SUSTAINABILITY & INDUSTRY COMMITTEE TOUR OF PURE WATER SD FACILITY 4/2/2020 SD CHAMBER SUSTAINABILITY & INDUSTRY COMMITTEE MONTHLY MEETING 4/23/2020 SDCWA MONTHLY BOARD MEETING 6/3/2020 OWD REGULAR MONTHLY BOARD MEETING 6/25/2020 SDCWA MONTHLY BOARD MEETING 6/2/2020 EAST COUNTY CHAMBER OF COMMERCE MEETING 6/15/2020 FINANCE AND ADMIN COMMITTEE MTG 6/1.9/2020 LAFCO SPEOAL DISTRICTS ADVISORY BOARD 7/31/2019 MEETINGS -JULY 3, 11, 12, 15, 16, 23 & 24, 2019 8/31/2019 MEETINGS -AUGUST 7, 12, 15, 19 & 20, 2019 9/30/2019 MEETINGS -SEPTEMBER 3, 4, 13, 17, 18, 22, & 25, 2019 10/31/2019 MEETINGS -OCTOBER 1, 2, 3, 8, 11, 15, 16, 17, & 23, 2019 11/30/2019 MEETINGS -NOVEMBER 2, 5, 6, 7, 13, 19, 21 & 25, 2019 1/31/2020 MEETINGS -JANUARY 7, 8, 16, 21, 22, 27 & 29 12/31/2019 MEETNGS -DECEMBER 1, 3, 4, 5, 6, 9, 19 & 20 2/29/2020 MEETINGS -FEBRUARY 3, 4, 5, 6, 10, 12, 18, 20, 25 & 26 3/31/202.0 MEETINGS -MARCH 2. 3, 5, U & 12 9/4/2019 MEETING -SEPTEMBER 4, 2019 7/3/2019 MEETING -JULY 3, 2019 8/7/2019 MEETING -AUGUST 7, 2019 10/31/2019 MEETINGS -OCTOBER 2, 2019 11/30/2019 MEETINGS -NOVEMBER 6, 2019 1/31/2020 MEETINGS -JANUARY 8 2/29/2020 MEETING -FEBRUARY 5 3/31/2020 MEETNG -MARCH 11 9/22/2019 2019 SD CHAMBER MISSION TO WASHINGTON DC FLIGHT -AMERICAN AIRLINES 2019 SD CHAMBER MISSION TO WASHINGTON DC REGISTRATION 2019 SD CHAMBER MISSION TO WASHINGTON DC FLIGHT -UNITED AIRLINES 2019 SD CHAMBER MISSION TO WASHINGTON DC HOTEL Sum of Amount 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 14 136.00 78.30 33.64 80.04 108.46 103.24 53.48 103.82 94.30 59.80 715.08 2.32 2.32 2.32 2.32 2.32 2.30 2.30 2.30 18.50 408.50 2,300.00 608.00 1,600.36 DIRECTOR'S NAME Row Labels Trawel Travel Total Conferences and Seminars Conferences and Seminars Tota_l_ Grand Total ROBAK MARK Date Descri tions 43730 2019 SD CHAMBER MISSION TO WASHINGTON DC LODGING 9/30/2019 2019 SD CHAMBER MISSION TO WASHINGTON DC EXPENSES 12/3/2019 ACWA CONFERENCE PARKING 2/24/2020 SD REGIONAL CHAMBER OF COMMERCE SACRAMENTO AIRFARE 2/26/2020 SD CHAMBER SACRAMENTO MEALS AND TRANSPORTATION 11/22/2019 CHULA CHAMBER OF COMMERCE REGISTRATION Sum of Amount 335.29 271.16 79.00 77.98 86.74 5 767.03 725.00 2/24/2020 REGISTRATION -EB H2OVERVIEW 149.00 SD REGIONAL CHAMBER OF COMMERCE SACRAMENTO REGISTRATION 450.00 1,324.00 $ 22,470.97 DIRECTOR'S NAME SMITH, TIM Row labels Date Descriptions Business meetings 7/24/2019 EAST COUNTY CAUCUS MEETING Business meetings 9/17/2019 COUNCIL OF WATER UTILITIES REGISTRATION 9/25/2019 EAST COUNTY CAUCUS MEmNG 10/15/2019 COUNCIL OF WATER UTILITIES REGISTRATION 10/23/2019 EAST COUNTY CAUCUS MEETING 11/20/2019 EAST COUNTY CAUCUS MEmNG 1/22/2020 EAST COUNTY CAUCUS MEmNG 2/26/2020 EAST COUNTY CAUCUS MEETING 2/12/2020 SWEETWATER MECEJIIIIG Director's Fee 7/12/2019 MEETING WITH DIR CROUCHER & GM WATTON TO DISCUSS CWA MATTERS 8/15/2019 MEETING WITH DIR CROUCHER & GM WATTON TO DISCUSS CWA MATTERS 8/23/2019 EO&WR COMMITTEE MEmNG 9/4/2019 MONTHLY BOARD MEETING 7/3/2019 MONTHLY BOARD MEETING 7/15/2019 ROSARITO DESALINATION PLANT COMMITTEE MEmNG 7/24/2019 EAST COUNTY CAUCUS MEETING 8/7/2019 MONTHLY BOARD MEETING 8/12/2019 MEETING WITH SWEETWATER AUTHORITY DIRECTORS RE: SYNERGIES 9/17/2019 COUNCIL OF WATER UTILITIES MEETING 9/25/2019 EAST COUNTY CAUCUS MEETING 8/21/2019 EAST COUNTY CAUCUS MEmNG 8/28/2019 ROSARITO DESALINATION PLANT COMMITTEE MEETING 10/2/2019 MONTHLY BOARD MEETING 10/15/2019 COUNCIL OF WATER UTILITIES MONTHLY MTG 10/16/2019 VETERAN'S AB 1488 10/23/2019 EAST COUNTY CAUCUS MEETING 10/30/2019 OTAY MESA CHAMBER OF COMMERCE 32ND DINNER EVENT 11/19/2019 MONTHLY BOARD MEmNG 10/3/2019 QUARTERLY GM MEETING 11/16/2019 MONTHLY BOARD MEmNG 11/18/2019 MEmNG WITH DIR CROUCHER & GM WATTON TO DISCUSS CWA MATTERS 11/20/2019 EAST COUNTY CAUCUS MEETING 1/6/2020 QUARTERLY MEmNG -GM RECRUITMENT 1/8/2020 OWD REGULAR MONHTLY BOARD MEmNG 1/16/2020 OWD SPECIAL BOARD MTG -GM CANDIDATE REVIEW 1/27/2020 OWD SPECIAL BOARD MTG -DISCUSSED GM CANDIDATE REVIEW AND CWA MATTERS 1/29/2020 OWD SPECIAL BOARD MTG -GM CANDIDATE REVIEW 12/2/2019 RETURNED OLD AND CONFIGURED NEW IPAD 1/21/2020 EO & WR COMMITTEE BOARD AGENDA REVIEW 1/22/2020 EAST COUNTY CAUCUS MEETING; DESALINATION COMMITTEE MTG 1/30/2020 ORGANIZATIONAL PHOTO 2/3/2020 OWD SPECIAL BOARD MEETING (GM SELECTION AND SHOOTER TRAINING) 2/5/2020 OWD REGULAR MONTHLY BOARD MEmNG 2/19/2020 EO & WR COMMITTEE BOARD AGENDA REVIEW 2/26/2020 EAST COUNTY CAUCUS MEmNG; QUARTERLY GM MEETING 3/11/2020 OWD REGULAR MONTHLY BOARD MEmNG 3/12/2020 CWA MATTERS MEETING 3/16/2020 EMERGENCY TELECONFERENCE MEmNG OF THE BOARD OF DIRECTORS -COVID UPDATE 3/20/2020 EMERGENCY TELECONFERENCE MEmNG OF THE BOARD OF DIRECTORS -COVID UPDATE 3/23/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS -COVID UPDATE 3/25/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS -COVID UPDATE 4/1/2020 OWD REGULAR MONTHLY BOARD MEETING 4/8/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS 4/15/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS 4/22/2020 EAST COUNTY CAUCUS MEETING;OWD EMERGENCY TELECONF MEmNG 4/29/2020 BUDGET & EMERGENCY TELECONFERENCE BOARD MEmNG 5/6/2020 OWD REGULAR MONTHLY BOARD MEETING 5/20/2020 OWD SPECIAL BOARD MEETING RE: VOCID-19 UPDATE 2/12/2020 MEETING WITH SWEETWATER AUTHORITY RE: ADHOC COMMITTEE COORDINATION 3/18/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS -COVID UPDATE 5/27/2020 EAST COUNTY CAUCUS MEETING 3/17/2020 EO & WR COMMITTEE BOARD AGENDA REVIEW 4/20/2020 CWA MATTERS MEETING 5/19/2020 EO & WR COMMITTEE BOARD AGENDA REVIEW 5/26/2020 CWA MATTERS MEETING 5/22/2020 OWD QUARTERLY GM MEETING 6/3/2020 OWD REGULAR MONTHLY BOARD MEETING 6/23/2020 CWA MATTERS MEETING 6/24/2020 EAST COUNTY CAUCUS MEETING 6/25/2020 CORONAVIRUS 101 TRAINING ATTACHMENT G s.um of Amount 19.46 45.00 9.73 45.00 9.73 9.73 9.73 9.73 11.21 169.32 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 DIRECTOR'S NAME SMITH,._J]_M Row Labels Date Descriptions Sum of Amount Director's Fee_'(o_t_al_ ___________ _ ____ 9,272.00 Mileage -Business 7/31/2019 MEETINGS -JULY 12 & 24, 2019 35.96 Mileage -Business Mileage Commutina Mileage -Commuting Grand Total 8/31/2019 MEETINGS -AUGUST 12, 15 & 21, 2019 51.04 9/30/2019 MEETINGS -SEPTEMBER 17 & 25, 2019 44.08 10/31/2019 MEETINGS -OCTOBER 15, 16, 23 & 30, 2019 91.64 11/30/2019 MEETINGS -NOVEMBER 18, 19 & 20, 2019 61.48 1/31/2020 MEETINGS -JANUARY 22 18.40 2/29/2020 MEETINGS -FEBRUARY 12 & 26 33.35 3L.llil020 MEETING -MARCH 12 _______ _ __ 17.25 9/4/2019 MEETING -SEPTEMBER 4, 2019 7/31/2019 MEETINGS -JULY 3 & 15, 2019 8/31/2019 MEETINGS -AUGUST 7, 23 & 28, 2019 10/31/2019 MEETINGS -OCTOBER 2, 3 & 23, 2019 11/6/2019 MEETING -NOVEMBER 6, 2019 1/31/2020 MEETINGS -JANUARY 6, 8, 16, 21, 22, 27, 29 & 30 12/2/2019 MEETING -DECEMBER 2 2/29/2020 MEETINGS -FEBRUARY 3, 5, 19 & 26 3/31/2020 MEETING -MARCH 11 353.20 13.92 27.84 41.76 41.76 13.92 110.40 13.92 55.20 13.80 332.52 $ 10,127.04 QJRECIOR'S N�E THOMPSON. MITCHELL Row La_b__els'-----D_i!.te Busiaess meetings B_u_5lness meetings Total Director's Fee Qescri1ttions 7/19/2019 SD COUNTY WATER RESILIENCE PORTFOLIO REGISTRATION 9/23/2019 EB H2OVERVIEW 9/19/2019 ACWA REGION 8 LEGISLATIVE FORUM REGISTRATION TRIP TO LA FOR LEGISLATIVE ROUNDTABLE -DINNER 9/20/2019 TRIP TO LA FOR LEGISLATIVE ROUNDTABLE -BREAKFAST 10/22/2019 CHULA VISTA CHAMBER OF COMMERCE FIRST FRIDAY BREAKFAST MTG 11/7/2019 LUNCH WITH C ANTOINE, SDCWA 11/19/2019 COUNCIL OF WATER UTILITIES REGISTRATION 11/22/2019 CSDA SAN DIEGO CHAPTER REGISTRATION REALTOR ASSOCIATION MLS REGISTRATION 11/8/2019 BB SWC FOUNDATION JAGUAR EVENT 11/1/2019 FIRST FRIDAY BREAKFAST 2/19/2020 CSDA SAN DIEGO CHAPTER REGISTRATION 2/7/2020 FIRST FRIDAY BREAKFAST 3/6/2020 FIRST FRIDAY BREAKFAST 8/15/2019 CHULA VISTA ELEMENTARY SCHOOL DISTRICT HYDROSTATION LAUNCH 9/3/2019 SCEDC BOARD MEETING 9/4/2019 MONTHLY BOARD MEETING 9/5/2019 WATER CONSERVATION GARDEN MEETING WITH EXEC DIR J PILLSBURY 7/3/2019 MONTHLY BOARD MEETING 7/15/2019 ROSARITO DESALINATION PLANT COMMITTEE MEETING 7/18/2019 WATER CONSERVATION GARDEN BOARD MEETING 7/19/2019 SD COUNTY WATER RESILIENCE PORTFOLIO 7/16/2019 AD HOC GM EVALUATION COMMITTEE MEETING 8/7/2019 MONTHLY BOARD MEETING 8/12/2019 QUARTERLY GM MEETING 8/20/2019 FAC&C COMMITTEE MEETING 9/13/2019 SCEDC 29TH ANNUAL ECONOMIC SUMMIT 9/18/2019 FAC&C COMMITTEE MEETING 8/28/2019 ROSARITO DESALINATION PLANT COMMITTEE MEETING 7/2/2019 SCEDC BOARD MEETING 8/2/2019 MET W/ GM WATTON & COUNSEL SHINOFF TO REVIEW AUGUST BOARD ITEMS 8/5/2019 MEETING WITH CHULA VISTA CITY MANAGER RE: SEWER BILLING 8/6/2019 AD HOC GM EVALUATION COMMITTEE MEETING 8/16/2019 COMMITTEE AGENDA BRIEFING WITH GM WATTON FOR AUGUST MEETINGS 8/29/2019 MET W/ GM WATTON & COUNSEL SHINOFF TO REVIEW SEPTEMBER BOARD ITEMS 9/19/2019 ACWA REGION 8 LEGISLATIVE FORUM 9/20/2019 ACWA REGION 8 LEGISLATIVE FORUM 9/27/2019 MET W/ GM WATTON & COUNSEL SHINOFF TO REVIEW OCTOBER BOARD ITEMS 10/1/2019 SCEDC BOARD MEETING 10/2/2019 MONTHLY BOARD MEETING 10/8/2019 OCT SPECIAL BOARD MEETING 10/14/2019 PRESIDENTS AND GMs MEETING 10/15/2019 COUNCIL OF WATER UTILITIES 10/16/2019 AB1588 NEWS CONFERENCE 10/18/2019 MET WITH GM WATTON TO REVIEW OCTOBER COMMITTEE MTG AGENDA ITEMS 10/22/2019 MEXICAN AMERICAN BUSINESS PROFESSIONALS ASSOCIATION 10/23/2019 REVIEW ITEMS FOR THE NOVEMBER FINANCE AND ADMIN COMMITTEE MTG 10/30/2019 WATER CONSERVATION GARDEN JPA BOARD MTG 11/2/2019 PACIFIC SOUTHWEST ASSOCIATION OF REALTORS 2020 INSTALLATION DINNER 11/5/2019 SCEDC BOARD MEETING; HARASSMENT PREVENTION MANDATORY TRAINING 11/6/2019 MONTHLY OWD BOARD MEETING; MEXICAN AMERICAN BUSINESS PROFESSIONALS ASS'N 11/7/2019 AD HOC GM RECRUITMENT MEETING 11/22/2019 AD HOC GM RECRUITMENT MEETING 11/8/2019 SOUTHWEST COLLEGE FOUNDATION 2019 JAGUAR AWARDS LUNCHEON 12/18/2019 AD HOC GM RECRUITMENT MEETING 1/6/2020 AD HOC GM MEETING 1/8/2020 OWD REGULAR MONTHLY BOARD MEETING 1/16/2020 OWD SPECIAL BOARD MEETING 1/27/2020 OWD SPECIAL BOARD MEETING 1/29/2020 WATER CONSERVATION JPA BOARD MEETING 11/25/2019 QUARTERLY GM MEETING 12/9/2019 FINANCE AND ADMINISTRATION COMMITTEE MEETING 12/19/2019 BOARD AGENDA REVIEW MEETING 11/1/2019 BOARD AGENDA REVIEW MEETING 12/10/2019 COLORADO RIVER WATER USERS ASS'N ANNUAL CONFERENCE 12/11/2019 COLORADO RIVER WATER USERS ASS'N ANNUAL CONFERENCE 12/12/2019 COLORADO RIVER WATER USERS ASS'N ANNUAL CONFERENCE 12/13/2019 COLORADO RIVER WATER USERS ASS'N ANNUAL CONFERENCE 1/7/2020 SCEDC BOARD MTG 1/21/2020 COUNCIL OF WATER UTILITIES MTG 1/22/2020 OWD DESALINATION AND FINANCE COMMITTEE MTG 1/30/2020 FRIENDS OF WATER CONSERVATION GARDEN BOARD MTG 2/3/2020 OWD REGULAR MONTHLY BOARD MEETING 2/5/2020 OWD REGULAR MONTHLY BOARD MEETING 2/19/2020 STATE OF THE COUNTY ADDRESS 2/20/2020 CSDA QUARTERLY MEETING 3/11/2020 OWD REGULAR MONTHLY BOARD MEETING 3/12/2020 SD COUNTY WATER AUTHORITY MTG ATTACHMENT H S_um of Amount 75.00 22.85 50.00 40.59 5.73 20.00 16.43 90.00 30.00 80.00 100.00 20.00 30.00 20.00 20.00 620.60 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 DIRECTOR'S NAME Row Labels Director's Fee Director's Fee Total Mileage -Business Mileage -Business Total Mileage -Commuting Mileage -Commuting Travel Travel Total Grand Total Tl::!_Ql\1f>_SON,_ MITCH ELL _D_ate Descrlp!,io� 3/16/2020 FINANCE AND ADMIN COMMITTEE MTG 3/20/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS -COVID UPDATE 3/23/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS 3/25/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS -COVID UPDATE 4/1/2020 OWD REGULAR MONTHLY BOARD MEETING 4/8/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS 4/15/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS -COVID UPDATE 4/16/2020 SO COUNTY EDC PUBLIC POLICY COMMITTEE MTG 4/22/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS -COVID UPDATE 4/28/2020 SD WATER CONSERVATION JPA BOARD MEETING 4/29/2020 BUDGET & EMERGENCY TELECONFERENCE BOARD MEETING 5/6/2020 OWD REGULAR MONTHLY BOARD MEETING 5/20/2020 OWD SPECIAL BOARD MEETING 5/21/2020 CSDA MEETING 2/4/2020 SO COUNTY EDC BOARD MTG 2/10/2020 QUARTERLY GM MEETING 2/12/2020 MABPA MONHTLY LUNCH MEETING 3/3/2020 SO COUNTY EDC BOARD MTG 3/18/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS -COVID UPDATE 4/7/2020 SO COUNTY EDC BOARD MTG 4/21/2020 FINANCE AND ADMIN COMMITTEE MTG 4/9/2020 MEETING WITH J. PILLSBURY OF ED OF SD CONSERVATION GARDEN 5/1/2020 MEETING WITH BOARD PRESIDENT, GM AND COUNSEL RE: CITY OF SD RECYCLED CONTRACT 5/5/2020 SCEDC BOARD MEETING 5/18/2020 FA & A COMMITTEE MEETING 5/28/2020 CWA BOARD MEETING 5/27/2020 CV CHAMBER UTILITY SUB-COMMITTEE MEETING 6/3/2020 OWD REGULAR MONTHLY BOARD MEETING 6/2/2020 SCEDC BOARD MEETING 6/15/2020 FINANCE AND ADMIN COMMITTEE MTG 7/31/2019 MEETINGS -JULY 1, 18 & 19, 2019 8/31/2019 MEETINGS -AUGUST 1, 2, 5, 6, 15, 16, 27 & 29, 2019 9/30/2019 MEETINGS -SEPTEMBER 3, 5, 13, 19, 20 & 27, 2019 10/31/2019 MEETINGS -OCTOBER 1, 15, 16, 18, 22 & 30, 2019 11/30/2019 MEETINGS -NOVEMBER 1, 2, 5, 6 & 8, 2019 1/31/2020 MEETINGS -JANUARY 7, 21, 29 & 30, 2020 12/31/2019 MEETINGS -DECEMBER 10, 13, 18 & 19, 2019 2/19/2020 PARKING -STATE OF THE COUNTY ADDRESS 3/31/2020 MEETINGS -MARCH 3, 6 & 12, 2020 2/28/2020 MEETINGS -FEBRUARY 4. 7. 12. 19. 20 & 28; 2020 7/31/2019 MEETINGS -JULY 3, 15 & 16, 2019 8/31/2019 MEETINGS -AUGUST 6, 7, 12, 20 & 28, 2019 9/30/2019 MEETINGS -SEPTEMBER 4 & 18, 2019 10/31/2019 MEETINGS -OCT. 2, 8, 14, 17 & 23, 2019 11/30/2019 MEETINGS -NOVEMBER 5, 6, 7, 22 & 25 1/31/2020 MEETINGS -JANUARY 6, 8, 14, 16, 22, 27 & 30 12/31/2019 MEETING -DECEMBER 9 2/29/2020 MEETINGS -FEBRUARY 3, 5 & 10 3a!.l2020 MEETINGS -MARCH 11 & 16 9/19/2019 ACWA REGION 8 LEGISLATIVE FORUM LODGING -COURTYARD BY MARRIOTT TRIP TO LA FOR LEGISLATIVE ROUNDTABLE -TOLL CHARGE 11/22/2019 CRWUA CONFERENCE -BALLYS HOTEL ADVANCE DEP COLORADO RIVER WATER U REGISTRATION CRWUA CONFERENCE -AIRFARE 12/11/2019 CRWUA MEALS AND TRANSPORTATION 2a!.f2020 AIRFARE AND LODGING FOR CANCELLED_S_Q_C!::fl\lVI_BER MEXICO TRIP Sum of Amount 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 14,288.00 81.20 73.66 223.30 93.38 109.04 51.04 32.48 5.75 30.48 70.15 770.48 45.24 67.86 30.16 75.40 75.40 104.65 15.08 44.85 29.90 488.54 213.68 6.62 417.24 505.00 207.97 178.26 462A5 1,991.22 $ 18,158.84 1 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 7, 2020 PROJECT: Various DIV. NO.ALL SUBMITTED BY: Michael Kerr, Information Technology Manager APPROVED BY: Adolfo Segura, Chief of Administrative Services Jose Martinez, General Manager SUBJECT: FY20 YEAR-END REPORT FOR THE DISTRICT’S FY19-22 STRATEGIC PLAN GENERAL MANAGER’S RECOMMENDATION: No recommendation. This is an informational item only. COMMITTEE ACTION: Please see “Attachment A”. PURPOSE: To provide a year-end report of the District’s FY19-22 Strategic Performance Plan for FY20. ANALYSIS: Summary The current Otay Water District Strategic Plan is a four-year plan ranging from the start of FY19 through the end of FY22. This report details the year-end results for the second year of our four-year plan. Objectives – Target 90% Strategic Plan objectives are designed to ensure the District is executing mission developed strategies and making appropriate changes necessary to guide the agency, meet new challenges, and positively adapt to change. FY20 year-end results are below target at 82%, with 37 of 45 active items completed or on schedule; eight (8) objectives are on hold. AGENDA ITEM 11b Objectives on Hold (8): CUSTOMER Strategy #1: Enhance and build awareness and engagement among the District’s customers and stakeholders, and within the San Diego Region of the District’s strategies, policies, projects, programs, and legislative/regulatory issues. Objective: Ensure consistency of branding and representation across the District, using consistent logos, colors, messaging, communications tools, and other collaterals through enhancement of internal and external marketing materials. During the fourth quarter, COVID-19 response and planning initiatives were a priority for staff. Due to budget cuts, the objective was placed on hold, and assuming budget availability, this objective will resume in FY22. Staff will continue to ensure that the District is using essential branding consistently, wherever possible. FINANCIAL Strategy #3: Enhancement of business systems. Objective: Evaluate enhancements to, or replacement, of the rate model program. This objective was placed on hold in the second quarter because staff added a Sewer Cost of Service and Capacity Fee Study as strategic objectives. The Sewer Cost of Service and Capacity Fee Studies were 0 5 10 15 20 25 30 35 40 45 37 0 8 7 On Schedule/Completed Behind On Hold Not Started 37 of 45 Active Objectives are On Target (82%) 3 unplanned projects that utilized the resources needed to move forward with evaluating the rate model program. As a result, the rate model program strategic objective is on hold. Staff will resume this project once both added objectives are completed. Objective: Re-evaluate on-premise and cloud-based payroll solutions. Staff has identified and evaluated three (3) new payroll systems: Paycom, Ceridian, and Complete. As of the third quarter, Paycom was the only solution that stated they could meet the District’s requirements, however, they’ve yet to confirm their solution functions. Due to other priorities driven by COVID-19, this objective has been placed on hold. Objective: Evaluate the Capacity and New Water Supply Fees, including an update of applicable costs, and, if possible, recommend a fee structure that is more efficient and effective than the current structure. Staff completed the Capacity Fee Study, which was presented to the Finance & Administration Committee in March. Due to the Capacity Fee Moratorium put in place in response to COVID-19, this objective has been placed on hold and will resume after October 31, 2020. The last steps in this objective were to meet with impacted parties and implement the study results. As a result of COVID-19, on April 1, 2020, the Board placed a 90-day moratorium on capacity fee changes and discussions. At the July Board meeting, the capacity fee moratorium was extended an additional 120 days to October 31. Staff will bring the Capacity Fee study back to the October Finance & Administration Committee and November Board meetings, and anticipates the new capacity fees will be effective November 1, 2020. Strategy #4: Enhancement of the Asset Management (AM) and Capital Improvement Programs (CIP). Objective: Financial activity-based cost cross-training. Staff has identified three (3) key activity-based cost measures and issued a report to the Operations department during the first quarter. However, due to COVID-19 related staff rotations, this objective has been placed on hold and will resume in FY21. INTERNAL BUSINESS PROCESSES Strategy #7: Enhancement of maintenance and program standards. Objective: Evaluate the efficiency and effectiveness of the District’s valve exercise preventative maintenance, including proposed recommendations. 4 This objective has been placed on hold until the Utility Services Manager position is filled. This objective will resume during the third quarter of FY21. Objective: Evaluate the impacts as a result of recent and upcoming regulatory changes including, but not limited to, Air Pollution Control District (APCD), State Water Resource Control Board (SWRCB), and Occupational Safety and Health Administration (OSHA), etc. This objective has been placed on hold until the Utility Services Manager position is filled. This objective will resume during the second quarter of FY21. LEARNING & GROWTH Strategy #1: Enhance leadership and employee training programs, and knowledge transfer process. Objective: Continue development of leadership and District-wide training programs. Staff met during the third quarter to provide ideas for the District’s training programs. Options were considered and ideas were presented to the General Manager. This objective was placed on hold in the third quarter and will remain on hold during the fourth quarter due to COVID-19 and budgetary constraints. Staff will continue to work on options in FY21 with an emphasis on evaluating online or remote offerings. Key Performance Indicators (KPI’s) – Target 75% KPI’s are designed to track the District’s day-to-day performance. These items measure the effectiveness and efficiency of essential operational services. The District’s overall goal of 75% is considered “on target”. For FY20, year-end results are above target at 90%, with 38 of 42 items achieving the desired level or better. KPI’s are based on established AWWA performance benchmarks, water agency standards, and historical trends. Seven (7) measures are reported at year’s end: • Water Debt Coverage • Sewer Debt Coverage • Reserve Level • Accounts Per FTE • Leak Detection Program • Injury Incident Rate • Enterprise Technology Services 5 KPI’s Not on Target (4): CIP Project Expenditures vs. Budget Target: 95% of budget but not to exceed 100% annually Year-to-date CIP expenditures amounted to $15,032,000 vs. the budgeted amount of $17,222,000. This measure was 7.7% below the established target of 95% due to known project delays. Construction Change Order Incidence Target: No more than 5% annually Life-to-date (LTD) expenditures for active FY20 projects amounted to $1,850,904 vs. the CIP budgeted amount of $33,014,302, resulting in an LTD change order incidence rate of 5.6%. This measure was 0.6% above the established target of 5% for the fiscal year. However, the FY20 year-to-date (YTD) change order incidence rate was limited to 4.5%. There was a total of 16 change orders issued on all active projects in FY20. Sewer Overflow Rate (AWWA) Target & AWWA: Zero (0) overflows per quarter There were zero (0) overflows in the fourth quarter; however, the year-to-date target was not met due to one (1) sewer overflow in the second quarter resulting from vandalism. The collection system in this area was televised and flushed to assure all debris was located and removed. 0 5 10 15 20 25 30 35 40 38 4 On Target Not on Target 38 of 42 Key Performance Indicators are On Target (90%) 6 Emergency Facility Power Testing Target: Test 100% of all facilities scheduled per quarter to have all emergency facilities tested annually (there are 36 powered ready facilities) Year-to-date, 26 out of 36 sites were tested. Due to COVID-19, all site testing was suspended in the fourth quarter. Testing will resume in September 2020. Next Steps Staff will continue to execute the plan’s objectives and key performance indicators and track emerging trends. Committee Reports – Slideshow The Strategic Plan results are presented to both the Finance & Administration, and the Engineering, Operations, & Water Resources Committee with a specific focus on the most relevant information for each Committee (see “Attachment B”). Strategic Plan is available on the Board VPN All of the Strategic Plan results and associated details are provided in a real-time, interactive web-based application available to the Board via secured remote access, VPN. The District Secretary can facilitate any password or access issues. FISCAL IMPACT: Joe Beachem, Chief Financial Officer Informational item only; no fiscal impact. STRATEGIC GOAL: Strategic Plan and Performance Measure reporting is a critical element in providing performance reporting to the Board and staff. LEGAL IMPACT: None. ATTACHMENTS: Attachment A – Committee Action Report Attachment B – PowerPoint Presentation 7 ATTACHMENT A SUBJECT/PROJECT: FY20 YEAR-END REPORT FOR THE DISTRICT’S FY19-22 STRATEGIC PLAN COMMITTEE ACTION: The Engineering, Operations & Water Resources and Finance & Administration Committees reviewed this item at meetings held on September 21 and 22, 2020, respectively and the following comments were made: • Staff presented the year-end results of the District’s fiscal year 2020 (FY 2020) Strategic Plan. • Staff reviewed information from the staff report and presented a PowerPoint that provided the year-end results for each of the objectives and key performance indicators for FY 2020. • Staff stated that the District utilizes the Balanced Scorecard Performance Management System that focuses on four (4) key perspectives: Customer, Financial, Internal Business Processes, and Learning & Growth. Along with the Balance Scorecard framework, the District also uses the AWWA business drivers to develop the District’s Strategic Plan. • In response to an inquiry from the Committee of why the objective, Enhance Leadership and employee training programs, and knowledge transfer process (specifically Continue development of leadership and District-wide training programs) was on hold, staff stated that a decision was made to focus on cross-training staff and also succession training in anticipation of several upcoming retirements. • The Committee commended staff for the objective, Overtime Percentage, that completed at a 72% year-end result. The goal for this objective is to attain less than 100% of budgeted overtime per quarter annually. Staff shared that the District’s leak detection program may have contributed to the reduction of overtime this fiscal year as Operations’ crews worked less after-business hours to repair major pipeline breaks. However, it was noted that every year there is an uncertainty of the amount of pipeline breaks the 8 District experiences. The Committee stated that investing in a preventive maintenance program, such as the leak detection program, has benefited the District. • The Committee inquired if the metric showing the number of customers to employee ratio was included in the Strategic Plan measures. The Committee stated they felt this was a measure that would be of interest to customers as it shows the District is serving more customers with less employees. Staff indicated that the measure is tracked in the Strategic Plan and the ratio is also presented in the budget workshop annually. The current ratio is 410 customers per employee. • The Committee noted an improvement for the objective, Direct Cost of Treatment Per MGD, as the year-end result met its target of no more than $1,050 per MGD spent on wastewater treatment annually. The District spent $996.29 in fiscal year 2020. • Staff noted that the objective, Sewer Overflow Rate (AWWA), did not meet the target and AWWA benchmark of zero because of an over-flow caused by vandalism. • In response to an inquiry from the Committee of why the objective, Emergency Facility Power Testing, did not meet its target, staff stated that this objective required multiple staff to conduct site testing. Due to COVID-19, all site testing in the fourth quarter of fiscal year 2020 was halted for the safety of staff. Testing has resumed as the District now has COVID-19 protocols in place. • There was discussion that when the District is consistently meeting or beating the targets of its measures, that staff does continually review measures to determine if they are relevant and if the targets that have been set are still challenging or if they should be reevaluated. Staff indicated that it is part of the process when reviewing the year-end report. Additionally, in the summer of 2021 the District will commence the development of the next 3 to 5-year Strategic Plan and the objectives, measures, targets, etc. will all be reevaluated at that time. • The Committee felt another measure that would be of interest to customers is the measure for the use of water in Gallons per Capita per Day (GPCPD). Staff indicated that the District does track this number and reports it to the State Water Resources Control Board on a monthly basis. On average, the District’s customers utilize about 80 GPCPD. In the summer, the use increases to a little over a 100 GPCPD, and in the winter the use falls to about 50 GPCPD. 9 • It was indicated that the measure for Training Hours per Employee, significantly exceeded the target due to the COVID-19 pandemic. Staff indicated that the cost for training is well leveraged through the use of subscription and membership services. Thus, the training cost per employee is very cost efficient. • In response to another question from the Committee, staff indicated that there is some information from the Strategic Plan on the Dashboard on the District’s website. The Committee also discussed sharing the Strategic Plan at meetings with sister agencies. Staff will explore additional ways in which the District can publicize the Strategic Plan to the public. Upon completion of the discussion, the committees supported presentation to the full board as an informational item. FY20 Year-End Report Otay Water District FY19-22 Strategic Plan ATTACHMENT B Contoso Pharmaceuticals Employee growth/ Retention Financial Results and Growth Increase Customer Satisfaction/Engagement Improve Operational Efficiency Customer Financial Internal Business Processes Learning & Growth 2 82% 37 Objectives TRENDS ON TARGET/COMPLETED OVERALL TARGET 90% TOTAL OBJECTIVES 52 NOT ON TARGET OBJECTIVES ON HOLD 0% 0 Objectives 18% 8 Objectives 75% 85% 95% FY16 FY17 FY18 FY19 FY20 NOT STARTED 7 RESULT TARGET ACTIVE LEARNING AND GROWTH CUSTOMER FINANCIAL INTERNAL BUSINESS PROCESSES 45 37/45 = 82%8/45 = 18% 3 Enhance and build awareness and engagement among the District’s customers and stakeholders and within the San Diego Region of the District’s strategies, policies, projects, programs, and legislative/regulatory issues Continue implementation of and enhance the District’s community and business outreach, media, and government relations programs Ensure consistency of branding and representation across the District, using consistent logos, colors, messaging, communications tools, and other collaterals through enhancement of internal and external marketing materials* Evaluate and enhance the District’s water conservation programs CUSTOMER | 4 ON TARGET NOT ON TARGET ON HOLD COMPLETED NOT STARTED Assess and enhance communications tools and increase online presence and social media exposure Assess communication tools (social media presence) *Objective placed on hold due to COVID-19 C01. C02. 4 Integrated resource planning and facility optimization Recycled water long-term business plan South District Potable Water Supply Alternatives to San Diego County Water Authority (SDCWA) Pipeline 4 Supply Interruption (catastrophic event) Treatment Plant long-term business plan (sewer portion) Evaluation of key system alternatives and financial impact Conduct desalination (Rosarito) financial analysis In support of the Engineering Department, conduct recycled water and sewer business financial analysis F01. F02. FINANCIAL | 19 ON TARGET NOT ON TARGET ON HOLD COMPLETED NOT STARTED 5 Enhancement of business systems Enterprise Resource Planning (ERP)/Customer Information System (CIS)/Customer Relationship Management (CRM) validation and replacement evaluation (ERP –FY21 Q1) Evaluate, and if beneficial, implement cloud-based payroll service Evaluate enhancements to, or replacement, of the rate model program* Implement Paperless Account Payable (AP) solution Re-evaluate prior payroll solutions and identify any new cloud-based payroll solutions* Complete a sewer cost of service study and recommend a rate structure that will provide for more stable sewer revenues Evaluate the Capacity and New Water Supply Fees, including an update of applicable costs, and, if possible, recommend a fee structure that is more efficient and effective than the current structure *Objective has been placed on hold due to COVID-19. F03. FINANCIAL | 19 (cont’d) ON TARGET NOT ON TARGET ON HOLD COMPLETED NOT STARTED 6 Enhancement of the Asset Management (AM) and Capital Improvement Programs (CIP) Enhancement of the framework for systematic development, validation, and implementation of new CIPs Enhancements of the AM Program Financial activity-based cost cross-training In support of the Engineering Department, enhance financial impact forecasting and analysis of future CIPs Develop alternative Public Employees Retirement System (PERS) financing strategy to fund ahead of PERS schedule Optimize funding and liability schedule FINANCIAL | 19 (cont’d) Negotiate and implement a new labor agreement and optimize employee benefit programs Negotiate and implement new labor agreement Review Deferred Compensation Program for reduced fees and streamlined approach and ensure offerings are fully utilized F04. F05. F06. ON TARGET NOT ON TARGET ON HOLD COMPLETED NOT STARTED7 Optimize meter activity operations Evaluation of Advanced Metering Infrastructure (AMI) technology (FY21 Q1) Explore web-based options for meter reading and backflow test entry Optimize Global Positioning System (GPS) fleet assignment and routing operation Enhance customer experience (collaboration between Customer Service and Communications) Customer electronic communication and outreach Enterprise Resource Planning (ERP)/Customer Information System (CIS)/ Customer Relationship Management (CRM) validation and replacement evaluation (CIS/CRM –FY21 Q1) I01. I02. INTERNAL BUSINESS PROCESSES | 27 ON TARGET NOT ON TARGET ON HOLD COMPLETED NOT STARTED8 Evaluate and leverage the use of available Human Resources self-service and capital management technology solutions Evaluate on-boarding programs and implement, if determined necessary Implement Human Resource Information System (HRIS) in coordination with payroll conversion Pilot cloud-based human capital performance management system and implement, if determined necessary (FY21 Q1) Maintain a reliable, scalable, secure, and high-performing technology infrastructure to support current and future service needs Adopt National Institute of Standards and Technology (NIST) cyber security framework and enhance disaster recovery planning Advance business processes and operational efficiencies through effective implementation of information technology Create framework to evaluate cost efficiency of new technology services and cloud vs. on-premise selection Deploy next generation storage services and communication architecture I04. INTERNAL BUSINESS PROCESSES | 27 (cont’d) I03. ON TARGET NOT ON TARGET ON HOLD COMPLETED NOT STARTED9 Enhance SCADA system services via SCADA roadmap project Prioritize fourteen strategic project/initiatives, recently developed Enhancement of enterprise geographic data Deploy ArcGIS Pro for 3D analysis (FY21 Q1) Migrate Geographic Information System (GIS) data structure from geometric network to utility dashboard (FY21 Q1) Evaluate the use of Drone2Map technology for asset, field inspections, and condition assessment Standardization of District asset data and collection process I05. I06. INTERNAL BUSINESS PROCESSES | 27 (cont’d) ON TARGET NOT ON TARGET ON HOLD COMPLETED NOT STARTED 10 Enhancement of maintenance and program standards Analyze electric energy-saving programs as they become available Evaluate the effectiveness of various methods to reduce nitrification events Evaluate the efficiency and effectiveness of the District’s valve exercise preventative maintenance including proposed recommendations Evaluate the impacts as a result of recent and upcoming regulatory changes including, but not limited to, Air Pollution Control District (APCD), State Water Resource Control Board (SWRCB), and Occupational Safety and Health Administration (OSHA), etc. Establish an access and defensible space vegetation mitigation program with maintenance schedules for District remote facilities, access roads, and off-road appurtenances Enhancement of contracting and facility services Enhance Customer and Public Service security in public lobby areas Evaluate feasibility of incorporating electric and hybrid vehicles into District fleet Streamline contract and purchase order (contract) management and lifecycle I07. I08. INTERNAL BUSINESS PROCESSES | 27 (cont’d) ON TARGET NOT ON TARGET ON HOLD COMPLETED NOT STARTED11 Enhancement of the Confined Space Program Automate confined space regulatory and work forms (electronic conversion), add confined space data layer in the District’s enterprise Geographic Information System (GIS), and use data to electronically automate the District’s confined space inventory INTERNAL BUSINESS PROCESSES | 27 (cont’d) Optimize District’s Hazardous Waste Operations and Emergency Response (HAZWOPER) Confined Space Rescue Team Certify at Industry Level and under the Incident Command System, streamline chlorine gas and confined space rescue training, operations, response and areas of responsibility and convert to inventory lists and equipment logs to electronic form I09. I10. ON TARGET NOT ON TARGET ON HOLD COMPLETED NOT STARTED 12 Enhance Leadership and employee training programs, and knowledge transfer process Continue development of leadership and District-wide training programs* Review and enhance knowledge transfer process to ensure retention of District knowledge (FY22 Q1) LEARNING AND GROWTH | 2 *Objective has been placed on hold due to COVID-19. L01. ON TARGET NOT ON TARGET ON HOLD COMPLETED NOT STARTED13 50% 60% 70% 80% 90% 100% FY16 FY17 FY18 FY19 FY20 LEARNING AND GROWTH CUSTOMERTRENDS ON TARGET KEY PERFORMANCE INDICATORS FINANCIAL OVERALL TARGET INTERNAL BUSINESS PROCESSES 75% TOTAL KPIs 42 REPORTED QUARTERLY 35 REPORTED ANNUALLY 7 10% 4 KPIs NOT ON TARGET 90% 38 KPIs RESULT TARGET 4/42 = 10%38/42= 90% 14 ANSWER RATE Target: 97% average answer rate per quarter annually TARGET Calculation: Number of all calls answered/Number of all calls received Customer Service staff member assisting a customer 98.00% 98.38%98.43% 96% 97% 97% 98% 98% 99% 99% 2018 2019 2020 YE A R -EN D R E S U L T 15 4.20 3.55 3.51 0 1 2 3 4 5 6 7 8 9 10 2018 2019 2020 YE A R -EN D R E S U L T TECHNICAL QUALITY COMPLAINT (AWWA) (Customer Service) Target & AWWA: No more than 7.1 complaints per 1000 customer accounts annually 75th Percentile for population served between 100,001-500,000 (combined utilities) Calculation: Number of technical quality complaints per year/Number of active customer accounts per reporting period Disinfection Tech examining potable equipment TARGET & AWWA BENCHMARK 16 POTABLE WATER COMPLIANCE RATE (AWWA) (Water Operations) Target & AWWA: 100% of all health-related drinking water standards per quarter annually 75th Percentile for population served between 100,001-500,000 (water) Calculation: Number of days the primary health regulations are met/Number of days in the reporting period District staff member refilling his reusable water bottle 100%100%100% 90% 95% 100% 2018 2019 2020 YE A R -EN D R E S U L T TARGET & AWWA BENCHMARK 17 CIP PROJECT EXPENDITURES VS. BUDGET Target: 95% of budget but not to exceed 100% annually Calculation: Actual Expenditures/Annual budget 870-2 Pump Station Emergency Generator 97.4% 104.8% 87.3% 0% 20% 40% 60% 80% 100% 120% 2018 2019 2020 YE A R -EN D R E S U L T TARGET 18 CONSTRUCTION CHANGE ORDER INCIDENCE Target: No more than 5% annually Calculation: Total cost of Change Orders (not including allowances)/Total original construction contract amount (not including allowances) Dictionary Hill Water Line Replacement Project 1.2% 2.0% 4.5% 1.3% 3.1% 5.6% 0% 1% 2% 3% 4% 5% 6% 2018 2019 2020 YTD LTD Target YE A R -EN D R E S U L T TARGET 19 O&M COST PER ACCOUNT Target: Less than $552.00 per account annually (based on Operating budget) Calculation: Total operations O&M costs/Number of accounts District staff testing a large water meter to ensure accuracy $549.00 $548.00 $545.00 $530 $535 $540 $545 $550 $555 $560 $565 $570 $575 2018 2019 2020 YE A R -EN D R E S U L T TARGET 20 BILLING ACCURACY (Customer Service) Target: 99.8% billing accuracy per quarter annually Calculation: Number of correct bills/Total number of bills during the reporting period Customer Service staff member assisting a customer with their bill 99.98%99.94%99.99% 95% 96% 97% 98% 99% 100% 101% 2018 2019 2020 TARGET YE A R -EN D R E S U L T 21 100% 129% 72% 50% 60% 70% 80% 90% 100% 110% 120% 130% 2018 2019 2020 YE A R -EN D R E S U L T OVERTIME PERCENTAGE Target: Less than 100% of budgeted overtime per quarter annually (based on Operating budget and historical trends; FY20 Overtime budget is $185,500) Calculation: Actual overtime costs (including comp time)/Budgeted overtime costs Utility Maintenance work crew conducting street repairs TARGET 22 SEWER RATE RANKING Calculation: Ranking for the average monthly sewer bill District Staff holding a CCTV camera, which are used to inspect the District’s collection system 6 3 5 0 5 10 15 20 25 2018 2019 2020 YE A R -EN D R E S U L T TARGET Target: Bottom 50th percentile for the 28 sewer service providers in San Diego (Otay ranks 5th out of 28 sewer service providers) 23 WATER RATE RANKING Calculation: Ranking for the average monthly water bill among CWA member agencies Target: Bottom 50th percentile for the 22 member agencies in San Diego (Otay ranks 5th out of 22 member agencies) 640-1 and 640-2 Reservoirs 3 3 5 0 5 10 15 20 2018 2019 2020 YE A R -EN D R E S U L T TARGET 24 200% 165% 188% 100% 120% 140% 160% 180% 200% 220% 2018 2019 2020 YE A R -EN D R E S U L T WATER DEBT COVERAGE RATIO Target: 150% excluding growth revenue annually Calculation: Qualified net operating revenues/Debt service requirements TARGET 25 *Annual measure 1241% 50% 250% 450% 650% 850% 1050% 1250% 1450% 2020 YE A R -EN D R E S U L T SEWER DEBT COVERAGE RATIO Target: 150% excluding growth revenue annually Calculation: Qualified net operating revenues/Debt service requirements TARGET 26 *Annual measure RESERVE LEVEL 100%100%100% 75% 80% 85% 90% 95% 100% 2018 2019 2020 YE A R -EN D R E S U L T Target: No less than 85% annually (there are 7 reserve funds) Calculation: Number of reserve funds that meet or exceed fund target levels/Total number of reserve funds TARGET 27 *Annual measure ACCOUNTS PER FULL-TIME EMPLOYEE (FTE) Target: 408 accounts per FTE annually Calculation: Potable + Recycled + Sewer Accounts/Number of FTEs District Staff performing meter maintenance 426 410 410 400 405 410 415 420 425 430 435 440 445 450 2018 2019 2020 YE A R -EN D R E S U L T TARGET 28 *Annual measure PERCENT OF CUSTOMERS PAYING BILLS ELECTRONICALLY Target: No less than 75% per quarter annually Calculation: Number of customers paying bills electronically/Total number of customers District customer making an online bill payment 77.05%78.67%80.47% 50% 60% 70% 80% 90% 100% 2018 2019 2020 YE A R -EN D R E S U L T TARGET 29 3.3% 3.6%3.8% 0% 1% 2% 3% 4% 5% 6% 2018 2019 2020 YE A R -EN D R E S U L T DISTRIBUTION SYSTEM LOSS TARGET Target: Less than 5%of unaccounted water annually Calculation: Volume purchased from CWA, City of San Diego & RWCTP Production –volume sold to customers + volume used by District/Volume purchased from CWA, City of San Diego & RWCTP Production 30 PLANNED POTABLE WATER MAINTENANCE RATIO IN $ Target: 66% of all labor costs spent on preventative maintenance per quarter annually Calculation: Total Planned Maintenance Cost/Total Maintenance Cost District staff connecting a customer’s meter after pulling a new copper service 72% 74% 77% 50% 60% 70% 80% 2018 2019 2020 YE A R -EN D R E S U L T TARGET 31 74%74% 70% 50% 60% 70% 80% 2018 2019 2020 YE A R -EN D R E S U L T PLANNED RECYCLED WATER MAINTENANCE RATIO IN $ Target: 70% of all labor costs spent on preventative maintenance per quarter annually Calculation: Total Planned Maintenance Cost/Total Maintenance Cost TARGET 32 82%84% 92% 50% 60% 70% 80% 90% 100% 2018 2019 2020 YE A R -EN D R E S U L T PLANNED WASTEWATER MAINTENANCE RATIO IN $ Target: 77% of all labor costs spent on preventative maintenance per quarter annually TARGET Calculation: Total Planned Maintenance Cost/Total Maintenance Cost Aerial view of the Ralph W. Chapman Recycling Plant 33 DIRECT COST OF TREATMENT PER MGD Target: No more than $1,050 per MGD spent on wastewater treatment annually Calculation: Total O&M costs directly attributable to sewer treatment/Total volume in MG for one quarter District staff checking the clarity and particulates of a final effluent sample $1,165.82 $1,071.66 $996.29 $0 $200 $400 $600 $800 $1,000 $1,200 2018 2019 2020 YE A R -EN D R E S U L T TARGET 34 LEAK DETECTION PROGRAM Target: 20% of system surveyed for leaks annually 20%20%20% 0% 10% 20% 30% 2018 2019 2020 YE A R -EN D R E S U L T Calculation: Miles of potable pipe surveyed/Total miles of potable pipe The District’s contractor lowering a See Snake to begin assessment on a 14” main above Sweetwater Lake TARGET 35 *Annual measure INJURY INCIDENT RATE Target: No more than 4.1 injury incidents per 200,000 hours worked annually (based on Department of Labor average for similar-size water agencies) Calculation: Number of injuries & illnesses x 200,000/Number of employees x 2,000 hours worked 4.4 4.4 2.9 0 1 2 3 4 5 6 7 8 9 10 2018 2019 2020 YE A R -EN D R E S U L T TARGET 36 *Annual measure ENTERPRISE TECHNOLOGY SERVICES AVAILABILITY Target: No less than 99.5% availability 99.5%99.5%99.5% 90% 91% 92% 93% 94% 95% 96% 97% 98% 99% 100% 2018 2019 2020 YE A R -EN D R E S U L T Calculation: 2 days/year (1 day/19 hours) TARGET 37 *Annual measure 100.00%99.96%100.00% 95% 96% 97% 98% 99% 100% 2018 2019 2020 YE A R -EN D R E S U L T MARK-OUT ACCURACY Target: 100% mark-out accuracy per quarter annually TARGET Calculation: Number of mark-outs performed without an at-fault hit, which is damage to a District facility that results from a missing or erroneous mark-out/Total number of mark-outs District staff conducting a mark-out 38 PROJECT CLOSEOUT TIME Target: 45-day average annually Calculation: Number of days between NOSC and NOC for all construction projects within the quarter/ Number of construction projects within the quarter Board of Directors tour at 870 Pump Station 70.3 37.0 37.3 0 10 20 30 40 50 60 70 2018 2019 2020 YE A R -EN D R E S U L T TARGET 39 ANNUAL RECYCLED WATER SITE INSPECTIONS Target: 100% of recycled sites inspected annually (147 recycled water sites scheduled for FY20) Calculation: Cumulative percentage of recycled water sites inspected per quarter of those required by DEH 100.00%100.00%100.00% 95% 96% 97% 98% 99% 100% 2018 2019 2020 YE A R -EN D R E S U L T TARGET 40 District staff conducting a recycled water inspection at Veterans Elementary in Chula Vista RECYCLED WATER SHUTDOWN TESTING Target: 90% of recycled site shutdown tests performed annually (28 recycled water sites scheduled for shutdown in FY20) 86% 100% 96% 75% 80% 85% 90% 95% 100% 2018 2019 2020 YE A R -EN D R E S U L T TARGET Calculation: Cumulative percentage of recycled site shutdown tests performed per year compared to those scheduled 41 129% 188% 50% 70% 90% 110% 130% 150% 170% 190% 2019 2020 YE A R -EN D R E S U L T EASEMENT EVALUATION AND FIELD INSPECTION Target: 100% assigned easements, evaluated via desktop tools, and inspected annually (100 easements were assigned for FY20) Calculation: Number of easements evaluated and inspected/Total easements assigned for the period TARGET 42 PERCENT OF PM’S COMPLETED –FLEET MAINTENANCE Target: 90% of scheduled preventative maintenance completed per quarter annually Calculation: Number of PM’s completed/Number of PM’s scheduled 100% 99% 96% 80% 85% 90% 95% 100% 2018 2019 2020 YE A R -EN D R E S U L T TARGET 43 PERCENT OF PM’S COMPLETED –RECLAMATION PLANT Target: 90% of scheduled preventative maintenance completed each quarter annually Calculation: Number of PM’s completed/Number of PM’s scheduled Aerial view of the Ralph W. Chapman Reclamation Plant 98%98% 100% 80% 85% 90% 95% 100% 2018 2019 2020 YE A R -EN D R E S U L T TARGET 44 PERCENT OF PM’S COMPLETED –PUMP/ELECTRIC SECTION Target: 90% of scheduled preventative maintenance completed per quarter annually Calculation: Number of PM’s completed/Number of PM’s scheduled District Vehicle towing a genset 100%100%100% 80% 85% 90% 95% 100% 2018 2019 2020 YE A R -EN D R E S U L T TARGET 45 SYSTEM VALVE EXERCISING PROGRAM Target: 3,080 valves exercised annually Calculation: Total number of valves exercised per year District staff performing a valve exercise 3405 3298 3319 2,000 2,200 2,400 2,600 2,800 3,000 3,200 3,400 2018 2019 2020 YE A R -EN D R E S U L T TARGET 46 POTABLE WATER DISTRIBUTION SYSTEM INTEGRITY (Water Operations) Target: No more than 16 leaks or breaks per 100 miles of distribution system annually AWWA: 16.1 leaks and breaks per 100 miles of distribution system (50th percentile Potable Water System Integrity: Leaks and Breaks for population served between 100,000-500,000) Calculation: [100 (annual total number of leaks + annual total number of breaks)] /total miles of distribution piping 1485-1 Pump Station TARGET 9.50 8.44 7.61 5 7 9 11 13 15 17 19 2018 2019 2020 AWWA BENCHMARK YE A R -EN D R E S U L T 47 RECYCLED WATER SYSTEM INTEGRITY Target: No more than 6.6 leaks or breaks per 100 miles of recycled distribution system annually Calculation: (100 x Number of leaks and breaks)/Number of miles of recycled distribution system TARGET 2.67 4.45 0.96 0 1 2 3 4 5 6 7 8 9 10 2018 2019 2020 YE A R -EN D R E S U L T 48 SEWER OVERFLOW RATE (AWWA) (Wastewater Operations) Target & AWWA: 0 overflows per quarter 75th Percentile for Sewer Overflow rate for population served between 0-50,000 Calculation: 100 x Total number of sewer overflows during the reporting period/Total miles of pipe in the sewage collection system District staff operating and documenting the condition of the collection system 0 1 1 0 1 2018 2019 2020 YE A R -EN D R E S U L T TARGET & AWWA BENCHMARK is 0 49 EMERGENCY FACILITY POWER TESTING* Target: Test 100% of all facilities scheduled per quarter to have all emergency facilities tested annually (36 powered ready facilities) Calculation: Number of facilities tested/Total number of facilities Emergency standby genset at the Cottonwood Sewer Lift Station 106% 94% 72% 50% 60% 70% 80% 90% 100% 110% 2018 2019 2020 YE A R -EN D R E S U L T ANNUAL TARGET *Due to COVID-19, all site testing was halted in 4th quarter 50 POTABLE TANK INSPECTION AND CLEANING Target: 8 potable water storage tanks and/or reservoirs cleaned annually Calculation: Total number of tanks cleaned and inspected annually 570-1 Reservoir 8 7 11 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 2018 2019 2020 YE A R -EN D R E S U L T ANNUAL TARGET 51 MAIN FLUSHING AND HYDRANT MAINTENANCE Target: 215 mains flushed and fire hydrants maintained annually 443 216 429 0 50 100 150 200 250 300 350 400 450 500 2018 2019 2020 YE A R -EN D R E S U L T ANNUAL TARGET Calculation: Total number of mains flushed and fire hydrants maintained per year District staff exercising a hydrant valve and flushing a hydrant at the same time 52 CRITICAL VALVE EXERCISING Target: 631 critical valves exercised annually Calculation: Total number of critical valves exercised in a year District staff exercising a District valve 633 631 631 5 105 205 305 405 505 605 2018 2019 2020 YE A R -EN D R E S U L T ANNUAL TARGET 53 EMPLOYEE VOLUNTARY TURNOVER RATE (Organizational Development) Target: Less than 5% turnover annually ANNUAL TARGET Calculation: Number of voluntary terminations (not including retirements)/Average number of employees 1.50% 3.77% 2.19% 0% 1% 2% 3% 4% 5% 6% 2018 2019 2020 YE A R -EN D R E S U L T 2019 Employee Appreciation Luncheon 54 TRAINING HOURS PER EMPLOYEE (Organizational Development) Target: 12 hours per employee annually Calculation: Total qualified training hours for all employees/Average number of FTEs District staff attending the “Women in Water Symposium“ TARGET 18.11 26.84 59.90 0 7 14 21 28 35 42 49 56 2018 2019 2020 YE A R -EN D R E S U L T 55 SAFETY TRAINING PROGRAM Target: 24 hours per field employee annually TARGET Calculation: Total qualified safety training hours for field employees/Average number of field employees District staff entering an excavation to complete a service replacement 30.38 35.44 79.04 0 10 20 30 40 50 60 70 80 2018 2019 2020 YE A R -EN D R E S U L T 56 Questions? STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 7, 2020 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 resulting 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. Staff continues to pursue temporary and permanent modifications to the boardroom and other facilities. 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 developed in accordance with county health guidelines. Staff will continue to monitor and comply with all Federal, State and Local orders and guidelines that apply or affect the District. •Potable Water Purchases – The August potable water purchases were 3,498 acre-feet which is 14% above the budget of 3,071 acre-feet. 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 AGENDA ITEM 12 2 if the expected reductions will or will not happen the rest of the year. • Recycled Water Purchases – The August recycled water purchases from the City of San Diego and production at the District’s treatment facility were 565 acre-feet which is 10% above the budget of 512 acre-feet. Currently, staff is unable to decisively determine to what extent COVID-19 will impact recycled water sales volumes. ADMINISTRATIVE SERVICES: GIS: • New Development Environment for District GIS Web Applications - Staff is preparing for the upcoming GIS Operation Dashboard migration to the latest web platform, Experience Builder. Esri released the new “Experience Builder” and “Web AppBuilder”, which allows users to create 2D and 3D web apps and maps, including information galleries and operational applications for any type of desktop or mobile device workflow. Human Resources: • Open Enrollment - Will be held from October 12th to October 30th; HR is working with Alliant (the District’s benefits consultant) and IT staff in preparation. • Recruitments/New Hires/Promotions: o Charles Mederos, former Water Systems Supervisor, was recently selected as the new Utility Services Manager. o The District is preparing to recruit for HR Assistant I/II and Water Systems Supervisor. IT Operations: • Network and Data Center Hardware - Staff commenced the design and configuration of the recent Board-approved purchase of new enterprise data storage and business server equipment. The new equipment landscape provides point-in-time recovery, instant backup and recovery, and cloud storage services for additional disaster recovery redundancies. The project is scheduled for completion by the end of next month. Purchasing & Facilities: • Heating, Ventilation, and Air Conditioning (HVAC) Reduced Schedules – For seldom used areas at District headquarters, Facilities has a policy to either power down HVAC units or close off areas and make conditioned air available only on-demand. These areas include the Board Room, conference rooms, lower level training room, and unused offices. With the reduction of onsite staff due to COVID-19, one 3 additional unit has been powered down; the lunchroom operating hours are reduced by 80%; while the remaining schedules have been shortened 25% on average. The District can expect a reduction in HVAC operating costs of up to 33% when compared to an adjusted pre- COVID-19 year-over-year. • Food Rescue Donation in a Time of Need – As part of continued emergency preparation, the District maintains provisions to sustain staff in the performance of their duties during prolonged emergencies. These provisions include extended shelf life food items, which require preparation, as well as Meals Ready-to-Eat (MRE) with a shorter shelf life. A total of 48 cases of MRE’s, totaling 576 meals, had reached their scheduled replacement and were surplused just prior to reaching their shelf life to a local community food bank through FeedSanDiego.org, whose mission is to “Connect every person facing hunger with nutritious meals by maximizing food rescue”. Safety & Security: • COVID-19 – Staff continues to monitor the following for updates and the latest information: o County’s activated Emergency Operations Center (for local water agencies), Cal/OSHA, County & State health departments, and CDC o County’s Water Hub as part of Office of Emergency Services WebEOC, CalWARN, local and neighboring water agencies • Monthly WebEOC Exercise – Successfully completed the monthly exercise for September 2020, which consisted of “fill out a power and fuel request form and submit it for fulfillment”. Due to COVID- 19 conditions, the completion was done remotely and without physical presence from District EOC staff. This process will continue until further notice. • DOT and Drug-Free Workplace Testing – Completed the regulatory quarterly testing with no incidents. • Update on America’s Water Infrastructure Act of 2018 (AWIA 2018) Work continues on the Emergency Response Plan (part 2 of 2). The project is on target to meet EPA’s certification deadline of September 30, 2020. • Confined Space (CS) GIS Layer – Staff is working with stakeholders on selecting a few sample CS for testing and inclusion of detailed information users would like to see embedded in the GIS layer. 4 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) August 2020 (31 Days) September 2020 (28 Days) FY 2020 End of Year Lockable Lockable Balances as of September 2020 (28 Days) FY 2020 Remainder FY 2021 Lockable Lockable Accounts Owner 129 498 578 $205,805 $120,916 $97,912 Tenant 147 425 477 $158,471 $122,106 $71,306 Total 276 923 1,055 $364,276 $243,022 $169,218 Typical Monthly Values 200 Actual Sales $40,861,103 $9,902,136 Percent Increase 38% Percent of Bad Debt Exposure 0.59% 1.71% FY2021 Waived Penalties $202,812 Lockable $'s From Recycled Accounts $ - $ - There are no recycled accounts that are lockable. Note: Prior to the COVID-19 pandemic the lockable balance was $48,500. • FY 2021 Budget Book – A draft transmittal letter and budget books have been submitted to the General Manager for review from September 29th to October 1st. The deadline staff has set for submitting the budget document for the GFOA and CFSMO awards is October 6th. • Capacity Fee Study – The current capacity fee moratorium expires on October 31, 2020. Finance, Engineering, the General Manager, and Director Thompson met with the BIA community on September 8th and a second meeting took place on September 28th. Staff is planning to return to the October Committee/November Board with the Capacity Fee Study results and is anticipating that the capacity fee results will become effective November 1, 2020. 5 • 2020 Water Loss Audit - The 2020 Water Loss Validation Audit was completed and filed with the California Department of Water Resources on September 21, 2020. The total annual water loss dropped from 1,252.85 AF to 1,111.47 AF. The District does not have comparative agency data at this time, but year over year water loss dropped by 11%. The effort to complete the audit involved input from Engineering, Operations, and Finance. • General Liability Insurance Renewal – Under ACWA-JPIA, the General Liability Program renews on October 1st of each year. Finance staff is working with ACWA and District staff to review and update the list of scheduled property on file with ACWA as part of the renewal process. We anticipate a 10% increase in premiums which was included in the Insurance Provider Board presentation in June 2020 and is included in the FY 2021 Budget. Although the premium increased, the District still anticipates a savings in Property and Liability Insurance Contributions of 24% by switching providers. • FY 2020 Audit – Teaman, Ramirez & Smith, Inc. completed the final field work with no reportable issues or findings. District staff received the first draft of the audited financial statements on Monday, September 21st for review. The audit schedule this year is similar to prior years. The financial statement results will be presented to the October Finance Committee and November Board meeting. • FEMA Reimbursements (COVID-19) – FEMA has issued a change in their policy effective September 15th. Starting on September 15th, only expenses directly related to “Emergency Protective Measures” in an “Eligible Facility” that provides emergency services are eligible for expense reimbursement. Finance staff is working closely with our primary point of contact at the California Office of Emergency Services (CalOES) to address our questions. CalOES advised the District to close out our incident project as of September 14th since we no longer have eligible expenses under the new FEMA policy guidelines. Finance staff submitted expenses from March, April, May, June, and July to CalOES for review. August and September expenses should be ready for submittal to CalOES by the third week of October. Upon CalOES’s review, the District may then submit all eligible expenses to FEMA for Federal review and reimbursement. We have until 60 days from the end of the COVID-19 incident period to file expenses. FEMA has not yet declared the end of the COVID-19 incident period. 6 Financial Reporting: • The financial reporting for August 31, 2020 is as follows: o For the second month ending August 31, 2020, there are total revenues of $21,853,419 and total expenses of $20,011,431. The revenues exceeded expenses by $1,841,988. • The financial reporting for investments for August 31, 2020 is as follows: o The market value shown in the Portfolio Summary and in the Investment Portfolio Details as of August 31, 2020 total $71,001,935 with an average yield to maturity of 0.990%. The total earnings year-to-date are $122,322. 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, the Station’s contractor Pacific Hydrotech achieved substantial completion and began the seven-day operational testing. Currently, the Pump Station remains in the testing phase while in full operation under SCADA control. The Station has experienced some operational issues that are being worked through to finalize the 7-day testing. It is anticipated the 7-day testing will be completed by Friday, October 9, 2020, as scheduled. Change Order No. 8, the final change order, is in the amount of $59,903.35. The County and the Sheriff Department participated in significant coordination to grant required easements (at no-cost) for the access road. Upon discovery of nesting Least Bells Vireo adjacent to the construction site, the Sheriff Department allowed sound blankets to be installed on their fence that avoided the need to construct the District budgeted $150K sound wall. The sound blanket resulted in a cost of less than $20K and saved the District more than $130K in mitigation costs. These coordination efforts on the part of the Sheriff Department were seen as more than offsetting for the costs associated with pavement widening. 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 7 on May 18, 2020. Tharsos set the trailer and installed staircases and platforms around the trailer in preparation for steel piping delivery. Tharsos’s construction contract also includes mechanical, electrical, and instrumentation & control. Project completion is expected in December 2020. 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. (P2619) • Portable Trailer Mounted VFD Pumps: This project consists of procurement of a portable trailer mounted hydropneumatic pump 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. The trailer vendor (Cortech Engineering) and subcontractor (PremierFlow) delivered the trailer to District headquarters on June 27, 2020. District staff are working with Cortech and PremierFlow to resolve manufacturing issues. This project is within budget. COVID-19 IMPACTS: The project has experienced delays associated with pump skid and trailer fabrication. (P2640) • Dictionary Hill Water Line Replacement - 2019: This project consists of constructing 1,250 linear feet of 8-inch polyvinyl chloride (PVC) water line and 60 linear feet of 12 PVC water line, including appurtenances, rehabilitation of services, and surface restoration. Outreach notifications were sent out to the neighboring residents prior to construction and during highline transfers. The contractor, LB Civil Construction (LB Civil), has completed the Kempton Street waterline installation and customers have been taken off the highline. On Birch Street, the waterline installation is complete and line stops were installed to tie in the waterline and avoid a 1-day shutdown for approximately 45 residents. LB Civil completed the waterline installation on Coronado Avenue and Date Street and will be disinfecting and pressure testing the new pipeline in preparation to tie it into the system. Subsequently, the customers will be taken off the highline and their services will be reconnected to the new watermain. The last order of work will be the road restoration to the County of San Diego standards. The project is scheduled to be completed in mid-October. COVID-19 IMPACTS: This project has experienced delays to address customer concerns regarding tie-in impacts. Additional costs, that included the installation of two temporary lines to mitigate service impacts to customers, was approved under Change Order No. 1 in the amount of $24,066.62. The District will seek FEMA reimbursement associated with these additional costs. (P2608, P2609, P2655) 8 • Hidden Mountain Sewage Pump Station Wet Well Renovation: This project will resolve septic conditions that exist at the Pump Station by eliminating dead storage areas below the pump operating level. The work will also add a sewer manhole to a segment of gravity sewer that is inaccessible to CCTV equipment. The scope of work consists of installing concrete fill with channel in two (2) of the station wet wells, construction of a replacement sewer line between wet wells, new sewer manhole, appurtenances, and surface restoration. Kay Construction was awarded the contract at the March 11, 2020 Board Meeting. Notice to Proceed was issued on May 26, 2020, and substantial completion was achieved on July 28, 2020. This project is within budget, the contract has been accepted, and the Notice of Completion has been processed for recordation by the County. (S2070) • 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 9, 2020. Project completion is expected in January 2021. 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. Limited notice to proceed for submittals and material procurement was issued September 8, 2020 and the Pre-Construction Meeting was held on September 15, 2020. The start of field work will be coordinated with CIP R2120 (Recycled Water Storage Tank Coating) to minimize shutdown of the Ralph W. Chapman Water Recycling Facility and the environmental work window associated with the existing Federal Fish and Wildlife Permit. Project completion is expected in January 2021. 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 has been routed for signature. 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 9 that contains 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. The project is out for construction bids to be opened on September 24, 2020 with award of the contract anticipated at the November 2020 Board meeting. 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 that is over a 20-minute drive time away. An update of a study to perform disinfection on-site, completed in 2015, is underway by Arcadis to compare the newest generation of ultraviolet (UV) methods that are significantly more energy efficient to constructing a chlorine contact basin. The final version of the study is anticipated to be complete in October. This study will then be used for the system improvement 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 was awarded the construction contract at the September Board Meeting. The contractor is working on meeting the insurance requirements and has started to provide submittals for the project. Construction is expected to begin in November 2020. (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 Company was awarded a construction contract at the September Board Meeting. The contractor is working on meeting the insurance requirements, and construction is expected to begin in November 2020. (R2120) • Buena Vista Avenue Surplus Property: On January 2, 2019, the Board adopted a resolution declaring the District-owned Buena Vista Avenue parcels as surplus real property and authorized the General Manager to dispose of the surplus properties in accordance with applicable statutes and laws, and in the best interest of the District. On July 22, 2020, the Board approved the July 3, 2020 10 Purchase Agreement for $222,500 and on September 22, 2020, escrow for the property was closed. The District is working with a broker to dispose of the last remaining property on Jamacha Boulevard and will bring this offer to the Board for approval on October 7, 2020. • Water Supply Opportunity Workshops with Sweetwater Authority: Sweetwater Authority’s (Sweetwater) ongoing Water Supply Feasibility Study identified several water supply collaboration opportunities for Sweetwater and District staff to work together to identify common goals and assess interest in further study of the water supply concepts. The first workshop was held on August 20, 2020 to discuss a possible sales agreement to purchase treated potable water from Sweetwater. A second workshop was held on September 24, 2020, which included the County of San Diego to discuss a possible South Bay Pure Water project that is similar to the East County Advanced Water Purification Project. • FY 2021 Sewage Flows to Metro vs Planned Capacity: • Summary of Budgeted and Sold Meters and EDUs for Fiscal Year 2021 up to 8/31/2020: Date Meters (Budgeted) Meters Sold (Actual) EDUs (Budgeted) EDUs Sold (Actual) Total $ Collected (Budgeted) Total $ Collected (Actual) August 2020 23.7 31 37.9 51 $256,459 $446,499 7/1/2020 thru 8/31/2020 47.5 48 75.8 90 $512,917 $695,065 Totals FY 2021 285.0 48 455.0 90 $3,077,500 $695,065 11 Water System Operations (reporting for August): • On Monday, August 3rd, emergency deliveries to Tijuana, Mexico commenced at the rate of 4,700 GPM or 6.77 MGD, with a target delivery of 434.2 AF or 141.48 MG to be reached by Monday, August 24th. This delivery was a combination of July (217.14 AF) and August (217.14 AF) for a total of 434.2 AF. • On Friday, August 7th, a small brush fire erupted in the corner of Heritage Road and Santa Victoria Road in Chula Vista. The fire department hooked their hoses to our hydrants and reported utilizing approximately 144,000 gallons of water to battle the fire. As a result of this incident, a water loss report was created. • On Monday, August 10th, staff had to perform an emergency shutdown on Orville Street in Spring Valley due to a 14” X 6” tee that failed. Staff had to isolate several valves to complete the shutdown since the valves near the break did not completely hold. The shutdown affected over 200 customers with either low water pressure or no water from 7:00 AM to 10:30 PM. Water trailers were provided for affected customers. • On Thursday, August 13th, there was an SDG&E planned power outage at the 1485 Reservoirs. The outage lasted for five hours and a small generator was used to power the SCADA signal to the reservoirs. • On Wednesday, August 19th, the County of San Diego conducted a virtual Hazardous Materials Business Plan inspection at the 1485-2 Pump Station with no violations noted. • On Thursday, September 3rd, the State Water Resources Control Board Division of Drinking Water issued their final Sanitary Survey Report of the District’s potable distribution system. The inspection occurred over several days in July and August which included virtual meetings and a physical inspection of all potable water sites. The report stated no operational deficiencies noted and one minor backflow inventory question to address. This tri- annual report stated, “The Division has determined that the Otay Water District is well operated and maintained.” Interagency Assistance: • On Friday, August 7th, Utility Worker II, Lincoln Anderson, provided Vactor truck excavation assistance for four hours to Helix Water District to excavate for a service repair at the intersection of Buena Vista Avenue and Broadway in Lemon Grove. 12 • On Monday, August 10th, Helix Water District loaned Otay a 14” Romac Dressing coupling for main repair at Orville Street in Spring Valley to meet required O.D range. • On Wednesday, August 19th, staff cleared a blockage between drop- manholes MH-354-057 and MH-354-074, performed high-pressure flushing upstream from the blockage, and televised the collection system. Staff returned the next day to perform CCTV inspection, but this time downstream from the blockage in drop-manholes MH-354- 100 to MH-354-074, and discovered rocks and pieces of broken manhole steps in the main. At this point, the District requested assistance from the County of San Diego to use their high-pressure combination vactor truck to flush approximately 860 feet of the downstream mains since the District’s vactor truck only reaches 600 feet. Staff performed televising of the mains and no issues were found. • On Thursday, August 27th, Utility Worker II, Lincoln Anderson, provided Vactor truck excavation assistance for four hours to Helix Water District for service repair at 8948 Switzer Drive in Spring Valley. Purchases and Change Orders: • The following table summarizes purchases and Change Orders issued during the period from August 18 through September 21, 2020, that were within staff’s signatory authority: Date Action Amount Contractor/ Consultant Project 08/18/2020 P.O. $35,000.00 WATCHLIGHT CORPORATION ANNUAL SECURITY ALARM MONITORING SERVICES (All District Sites) 08/21/2020 P.O. $1,161.00 PINNACLE BUSINESS SOLUTIONS TAPE LIBRARY SUPPORT RENEWAL 08/24/2020 P.O. $2,544.41 ZOOM VIDEO COMMUNICATIONS, INC. VIRTUAL MEETING SERVICES 08/25/2020 P.O. $2,160.00 Nth GENERATION COMPUTING, INC. ARUBA NETWORK ACCESS CONTROL SUPPORT SERVICES 08/25/2020 P.O. $1,079.09 24 HOUR ELEVATOR, INC. ELEVATOR REPAIR SERVICE 08/26/2020 P.O. $10,265.16 INDUSTRIAL SCIENTIFIC CORPORATION ANNUAL INET GAS DETECTION PROGRAM SERVICES (Sys Ops, TP, etc.) 13 Water Conservation and Sales: • Water Conservation – August 2020 usage was 1% higher than August 2013 usage. Since August 2019, customers have saved an average of 11% over 2013 levels. 08/26/2020 P.O. $3,421.72 INDUSTRIAL SCIENTIFIC COPRPORATION GAS DETECTION PROGRAM 09/01/2020 P.O. $3,636.38 SOUTHLAND PIPE CORPORATION 1200-1 RESERVOIR INTERIOR & EXTERIOR COATING (P2533) 09/02/2020 P.O. $17,143.30 Bluewater Rubber & Gasket Co. Field Equipment Capital Purchases (P2286) & 1200-1 Reservoir Interior & Exterior Coating (P2533) 09/02/2020 P.O. $4,000.00 PALM LAUNDRY, INC. ANNUAL TOWEL LAUNDRY SERVICE 09/09/2020 P.O. $1,462.79 WATCHLIGHT CORPORATION PUBLIC SERVICE SECURITY & ACCESS (CIP) 9/16/2020 P.O. $625.95 Watchlight Corporation 870-2 Pump Station (P2083) 9/16/2020 P.O. $2,841.37 Pacific Pipeline Supply 1200-1 Reservoir Interior & Exterior Coating (P2533) 9/21/2020 P.O. $40,486.01 Watchlight Corporation 870-2 Pump Station (P2083) 14 • The August potable water purchases were 3,498 acre-feet which is 14% above the budget of 3,071 acre-feet. The cumulative purchases through August were 6,584 acre-feet which is 14% above the cumulative budget of 5,768 acre-feet. • The August recycled water purchases and production were 565 acre- feet which is 10% above the budget of 512 acre-feet. The cumulative production and purchases through August were 1,095 acre- feet which is 13% above the cumulative budget of 971 acre-feet. 15 Potable, Recycled, and Sewer (Reporting up to the month of August): • Total number of potable water meters: 51,163. • Total number of sewer connections: 4,740. • Recycled water consumption for the month of August: o Total consumption: 541.7 acre-feet or 176,516,032 gallons. o Average daily consumption: 5,694,066 gallons per day. o Total cumulative recycled water consumption since August 1, 2019: 1,010 acre-feet. o Total number of recycled water meters: 741. • Wastewater flows for the month of August: o Total basin flow: 1,639,258 gallons per day. ▪ This is an increase of 5.4 percent from August 2019. o Spring Valley Sanitation District flow to Metro: 543,824 gallons per day. o Total Otay flow: 1,095,548 gallons per day. o Flow processed at the Ralph W. Chapman Water Recycling Facility: 967,387 gallons per day. o Flow to Metro from Otay Water District: 128,161 gallons per day. o By the end of August there were 6,752 wastewater EDUs. Exhibit A Annual YTD Budget Actual Budget Variance Var % REVENUES: 4110 Potable Water Sales 46,419,000$ 12,402,953$ 11,079,000$ 1,323,953$ 12.0% 31-4118 Recycled Water Sales 8,411,000 2,696,392$ 2,405,600 290,792 12.1% 4140 Potable Energy Charges 2,034,000 536,987 475,200 61,787 13.0% 4120 Potable System Charges 16,805,000 2,772,007 2,772,000 7 0.0% 4150 Potable MWD & CWA Fixed Charges 12,869,000 2,092,020 2,092,000 20 0.0% 4310 Potable Penalties and Other Fees 622,000 8,874 - 8,874 Total Water Sales 87,160,000 20,509,233 18,823,800 1,685,433 9.0% 4210 Sewer Charges 2,870,000 455,524 453,800 1,724 0.4% 4133 Meter Fees 123,000 24,335 20,400 3,935 19.3% 4136 Capacity Fee Revenues 1,869,000 374,307 373,600 707 0.2% 4414 Non-Operating Revenues 2,177,000 348,571 356,600 (8,029) (2.3%) 4621 Tax Revenues 4,155,000 111,949 102,700 9,249 9.0% 4512 Interest 179,000 29,500 29,800 (300) (1.0%) Total Revenues 98,533,000$ 21,853,419$ 20,160,700$ 1,692,719$ 8.4% EXPENSES: 5511 Potable Water Purchases 33,631,000$ 8,851,742$ 7,711,400$ (1,140,342)$ (14.8%) 5515 Recycled Water Purchases 4,058,000 1,493,900 1,493,900 - 0.0% 5523 CWA-Infrastructure Access Charge 2,839,000 438,666 438,600 (66) (0.0%) 5521 CWA-Customer Service Charge 1,703,000 283,664 283,800 136 0.0% 5524 CWA-Reliability Charge 2,711,000 440,417 440,400 (17) (0.0%) 5522 CWA-Emergency Storage Charge 4,608,000 782,873 782,800 (73) (0.0%) 5531 MWD-Capacity Res Charge 628,000 97,762 97,800 38 0.0% 5532 MWD-Readiness to Serve Charge 720,000 119,340 119,988 648 0.5% Subtotal Water Purchases 50,898,000 12,508,364 11,368,688 (1,139,676) (10.0%) 5411 Power Charges 2,898,000 624,624 601,233 (23,391) (3.9%) Payroll & Related Costs 21,860,000 3,291,986 3,361,700 69,714 2.1% Material & Maintenance 3,720,000 591,151 601,000 9,849 1.6% Administrative Expenses 6,280,000 854,590 846,482 (8,108) (1.0%) 5251 Legal Fees 707,000 112,316 117,800 5,484 4.7% Expansion Reserve 150,000 25,000 25,000 - 0.0% Replacement Reserve 9,676,000 1,612,700 1,612,700 - 0.0% OPEB Trust 1,100,000 183,300 183,300 - 0.0% General Fund Reserve 259,000 43,200 43,200 - 0.0% Total Expenses 98,533,000$ 20,011,431$ 18,925,303$ (1,086,128)$ (5.7%) EXCESS REVENUES(EXPENSE) -$ 1,841,988$ 1,235,397$ 606,591$ OTAY WATER DISTRICT COMPARATIVE BUDGET SUMMARY FOR THE TWO MONTHS ENDED AUGUST 31, 2020 F:/MORPT/FS2021-0820.xlsx 9/23/2020 11:48 AM COMPARATIVE BUDGET SUMMARY NET REVENUES AND EXPENSES FOR THE TWO MONTHS ENDED AUGUST 31, 2020 -$600,000 -$400,000 -$200,000 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 $2,000,000 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 August show a positive variance of $606,591. OTAY WATER DISTRICT INVESTMENT PORTFOLIO REVIEW August 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 September 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 2 percent inflation. The Committee will continue to oversee 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 August 2020 was .93%, which was two basis points lower than the previous month. LAIF return on deposits was fourteen basis points lower than the previous month, reaching an average effective yield of .78% for the month of August 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: August 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 $45.52 Million 8.02: Local Agency Investment Fund (Bonds) 100% 100% $ 3.92 Million 8.03: Federal Agency Issues 100% 100% $ 3.68 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% 21.96% 12.0: Maximum Single Financial Institution 100% 50% 2.72% 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 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 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 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 -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 $1,921,730 2.72% $64,931,114 92.05% $3,683,086 5.23% Otay Water District Investment Portfolio: 08/31/2020 Banks (Passbook/Checking/CD)Pools (LAIF & County)Agencies & Corporate Notes Total Cash and Investments: $70,535,930 (Book Value) Month End Portfolio Management August 31, 2020 Portfolio Summary % of Portfolio Book ValueInvestmentsMarket Value Par Value Days toMaturityTerm YTM360 Equiv.YTM365 Equiv. Federal Agency Issues - Coupon 3,683,086.07 7365.37 1.4543743,733,840.503,650,000.00 1.474 BOND PROCEEDS (LAIF)3,920,862.71 15.71 0.77313,940,125.103,920,862.71 0.784 Local Agency Investment Fund (LAIF)45,518,615.21 166.34 0.773145,742,238.8445,518,615.21 0.784 San Diego County Pool 15,491,635.58 122.58 1.511115,664,000.0015,491,635.58 1.532 68,614,199.57 100.00%Investments 69,080,204.4468,581,113.50 40 21 0.976 0.990 Cash (not included in yield calculations)Passbook/Checking 1,921,730.31 1 0.33711,921,730.311,921,730.31 0.341 70,535,929.88Total Cash and Investments 71,001,934.7570,502,843.81 40 21 0.976 0.990 Current Year August 31 59,335.43 Fiscal Year To Date 122,321.58 Average Daily Balance Effective Rate of Return 74,787,452.71 76,333,894.44 0.94%0.93% 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! ACData Updated: SET_ME8: 09/23/2020 09:56 Reporting period 08/01/2020-08/31/2020 Run Date: 09/23/2020 - 09:56 PM (PRF_PM1) 7.3.0 Report Ver. 7.3.5 9/24/2020 YTM360 Page 1 Par Value Book Value MaturityDateStatedRateMarket Value August 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 1,014,110.00 09/10/20212.37509/05/2019 1,028,084.85 AA313378JP7 374 1.454Federal Home Loan Bank2385 2,645,000.00 2,668,976.07 09/10/20212.37509/05/2019 2,705,755.65 AA313378JP7 374 3,683,086.073,733,840.503,650,000.003,684,344.26Subtotal and Average 1.454 374 BOND PROCEEDS (LAIF) 0.773STATE OF CALIFORNIA9015 3,920,862.71 3,920,862.71 0.7843,940,125.10LAIF 2018 1 3,920,862.713,940,125.103,920,862.713,969,701.42Subtotal and Average 0.773 1 Local Agency Investment Fund (LAIF) 0.773STATE OF CALIFORNIA9001 45,518,615.21 45,518,615.21 0.78445,742,238.84LAIF 1 45,518,615.2145,742,238.8445,518,615.2148,331,518.44Subtotal and Average 0.773 1 San Diego County Pool 1.511San Diego County9007 15,491,635.58 15,491,635.58 1.53215,664,000.00SD COUNTY POOL 1 15,491,635.5815,664,000.0015,491,635.5814,522,873.28Subtotal and Average 1.511 1 74,787,452.71 68,581,113.50 0.976 2169,080,204.44 68,614,199.57Total and Average Portfolio OTAY NL! ACData Updated: SET_ME8: 09/23/2020 09:56 Run Date: 09/23/2020 - 09:56 PM (PRF_PM2) 7.3.0 Report Ver. 7.3.5 YTM360 Page 2 Par Value Book Value StatedRateMarket Value August 31, 2020 Portfolio Details - Cash AverageBalanceIssuer Portfolio Management Month End Days toMaturityS&PCUSIPInvestment #PurchaseDate Union Bank 0.010STATE OF CALIFORNIA9002 405,213.30 405,213.30 0.010405,213.30UNION MONEY 1 0.000STATE OF CALIFORNIA9003 2,950.00 2,950.002,950.00PETTY CASH 1 0.444STATE OF CALIFORNIA9004 1,448,607.82 1,448,607.82 0.4501,448,607.82UNION OPERATING 1 0.000STATE OF CALIFORNIA9005 29,555.44 29,555.4407/01/2020 29,555.44PAYROLL 1 0.108STATE OF CALIFORNIA9010 685.64 685.64 0.11007/01/2020 685.64RESERVE-10 COPS 1 0.108STATE OF CALIFORNIA9011 4.98 4.98 0.11007/01/2020 4.98RESERVE-10 BABS 1 0.000STATE OF CALIFORNIA9014 34,713.13 34,713.1307/01/2020 34,713.13UBNA-FLEX ACCT 1 0.00 74,787,452.71 70,502,843.81 0.976 21 1Average Balance 71,001,934.75 70,535,929.88Total Cash and Investments Portfolio OTAY NL! ACData Updated: SET_ME8: 09/23/2020 09:56 Run Date: 09/23/2020 - 09:56 PM (PRF_PM2) 7.3.0 Month End Activity Report Sorted By Issuer August 1, 2020 - August 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 0.000.784 757,000.00LAIF 2018 757,000.004,677,862.71 3,920,862.71Subtotal and Balance 0.00 Union Bank STATE OF CALIFORNIA9002 7,500,007.330.010 7,594,801.31UNION MONEY STATE OF CALIFORNIA9004 2,203,754.640.450 1,384,508.95UNION OPERATING STATE OF CALIFORNIA9005 0.00 400,594.33PAYROLL STATE OF CALIFORNIA9010 2.020.110 23,770.71RESERVE-10 COPS STATE OF CALIFORNIA9011 4.980.110 59,153.40RESERVE-10 BABS STATE OF CALIFORNIA9014 0.00 5,194.06UBNA-FLEX ACCT 9,468,022.761,685,984.10 1,921,730.31Subtotal and Balance 9,703,768.97 Local Agency Investment Fund (LAIF) STATE OF CALIFORNIA9001 4,800,000.000.784 12,500,000.00LAIF 12,500,000.0053,218,615.21 45,518,615.21Subtotal and Balance 4,800,000.00 14,503,768.97 22,725,022.7659,582,462.02 51,361,208.2372.850%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 3,650,000.005.177%Issuer Subtotal Issuer: San Diego County San Diego County Pool San Diego County9007 5,001,581.571.532 0.00SD COUNTY POOL 0.0010,490,054.01 15,491,635.58Subtotal and Balance 5,001,581.57 5,001,581.57 0.0010,490,054.01 15,491,635.5821.973%Issuer Subtotal Portfolio OTAY NL! ACData Updated: SET_ME8: 09/23/2020 09:56 Run Date: 09/23/2020 - 09:56 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 August 1, 2020 - August 31, 2020 Activity Report Month End CUSIP Investment #Issuer Purchases orDeposits Redemptions orWithdrawals 73,722,516.03 70,502,843.81Total22,725,022.7619,505,350.54100.000% Portfolio OTAY NL! ACData Updated: SET_ME8: 09/23/2020 09:56 Run Date: 09/23/2020 - 09:56 DA (PRF_DA) 7.2.0 Report Ver. 7.3.5 Month End Duration Report Sorted by Investment Type - Investment Type Through 08/31/2020 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 1,028,084.85313378JP7 0.132 09/10/2021 1.0061,014,110.00 1.454Fair2.375000 Federal Home Loan Bank238599 2,645,000.00 2,705,755.65313378JP7 0.132 09/10/2021 1.0062,668,976.07 1.454Fair2.375000 STATE OF CALIFORNIA901599 3,920,862.71 3,940,125.10LAIF 2018 0.784 0.0003,920,862.71 0.773Fair.7840000 STATE OF CALIFORNIA900199 45,518,615.21 45,742,238.84LAIF 0.784 0.00045,518,615.21 0.773Fair.7840000 San Diego County900799 15,491,635.58 15,664,000.00SD COUNTY 1.532 0.00015,491,635.58 1.511Fair1.532000 0.918 0.05468,614,199.57 68,581,113.50 69,080,204.44Report Total Portfolio OTAY NL! ACPage 1Data Updated: SET_ME8: 09/23/2020 09:56 Run Date: 09/23/2020 - 09:56 DU (PRF_DU) 7.1.1 Report Ver. 7.3.5 Month End GASB 31 Compliance Detail Sorted by Fund - Fund August 1, 2020 - August 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 1,029,552.15Fair Value 09/10/2021 -1,467.3099 1,028,084.85313378JP70.00 0.00 0.00 0.00 2385 2,709,617.35Fair Value 09/10/2021 -3,861.7099 2,705,755.65313378JP70.00 0.00 0.00 0.00 9002 500,007.28Amortized 0.0099 405,213.30UNION MONEY 0.00 7,500,007.33 7,594,801.31 0.00 9003 2,950.00Amortized 0.0099 2,950.00PETTY CASH 0.00 0.00 0.00 0.00 9015 4,700,844.09Fair Value -3,718.9999 3,940,125.10LAIF 2018 0.00 0.00 757,000.00 0.00 9004 629,362.13Amortized 0.0099 1,448,607.82UNION OPERATING 0.00 2,203,754.64 1,384,508.95 0.00 9001 53,480,067.36Fair Value -37,828.5299 45,742,238.84LAIF0.00 4,800,000.00 12,500,000.00 0.00 9010 24,454.33Amortized 0.0099 685.64RESERVE-10 COPS 0.00 2.02 23,770.71 0.00 9011 59,153.40Amortized 0.0099 4.98RESERVE-10 BABS 0.00 4.98 59,153.40 0.00 9014 39,907.19Amortized 0.0099 34,713.13UBNA-FLEX ACCT 0.00 0.00 5,194.06 0.00 9005 430,149.77Amortized 0.0099 29,555.44PAYROLL0.00 0.00 400,594.33 0.00 9007 10,641,000.00Fair Value 21,418.4399 15,664,000.00SD COUNTY POOL 0.00 5,001,581.57 0.00 0.00 74,247,065.05Subtotal -25,458.08 71,001,934.750.00 19,505,350.54 22,725,022.76 0.00 74,247,065.05Total 71,001,934.75-25,458.080.00 19,505,350.54 22,725,022.76 0.00 Portfolio OTAY NL! ACData Updated: SET_ME8: 09/23/2020 09:56 Run Date: 09/23/2020 - 09:56 GD (PRF_GD) 7.1.1 Report Ver. 7.3.5 Month End Interest Earnings Sorted by Fund - Fund August 1, 2020 - August 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 1,014,110.0023841,005,000.00 2.375FAC09/10/2021 1,989.07 -740.65 1,248.421.448991,014,850.65313378JP7 2,668,976.0723852,645,000.00 2.375FAC09/10/2021 5,234.90 -1,949.27 3,285.631.448992,670,925.34313378JP7 405,213.309002405,213.30 0.010PA1 8.23 0.00 8.230.01999500,007.28UNION MONEY 3,920,862.7190153,920,862.71 0.784LA2 2,643.28 0.00 2,643.280.665994,677,862.71LAIF 2018 1,448,607.8290041,448,607.82 0.450PA1 1,065.19 0.00 1,065.191.99399629,362.13UNION OPERATING 45,518,615.21900145,518,615.21 0.784LA1 32,182.17 0.00 32,182.170.7129953,218,615.21LAIF 685.649010685.64 0.110PA1 1.79 0.00 1.790.0869924,454.33RESERVE-10 COPS 4.9890114.98 0.110PA1 4.28 0.00 4.280.0859959,153.40RESERVE-10 BABS 15,491,635.58900715,491,635.58 1.532LA3 18,896.44 0.00 18,896.442.1219910,490,054.01SD COUNTY POOL 70,435,625.24Subtotal 70,468,711.31 0.953 59,335.43-2,689.9262,025.3573,285,285.06 70,435,625.24Total 70,468,711.31 0.953 59,335.43-2,689.9262,025.3573,285,285.06 Portfolio OTAY NL! ACData Updated: SET_ME8: 09/23/2020 09:56 Run Date: 09/23/2020 - 09:56 IE (PRF_IE) 7.2.0 Report Ver. 7.3.5 SUMMARY FOR PERIOD 8/20/2020 - 9/23/2020 NET DEMANDS $)&$,4     70*%$)&$,4   505"-$)&$,4    8*3&50 $"-1&3405)&31045&.1-0:.&/5#&/&'*54 .0/5)-:   $"-1&3405)&31045&.1-0:.&/5#&/&'*54 .0/5)-:   $*5:0'$)6-"7*45"#*.0/5)-:4&8&3$)"3(&4 +6-:"6(    $*5:53&"463&3.&53010-*5"/4&8&3"(&4:45&. 26"35&3-:   05":8"5&3%*453*$5#*8&&,-:1":30--%&%6$5*0/  05":8"5&3%*453*$5#*8&&,-:1":30--%&%6$5*0/  13&'&33&%#&/&'*5*/463"/$&%&/5"-$0#3"$-"*.4 "6(   16#-*$&.1-0:&&43&54:45&.#*8&&,-:1&34$0/53*#65*0/   16#-*$&.1-0:&&43&54:45&.#*8&&,-:1&34$0/53*#65*0/   16#-*$&.1-0:&&43&54:45&.#*8&&,-:1&34$0/53*#65*0/   4"/%*&(0$06/5:8"5&3"65)8"5&3%&-*7&3*&4$)"3(&4 +6-:    41&$*"-%*453*$53*4,&.1-0:&&.&%*$"-#&/&'*54   41&$*"-%*453*$53*4,&.1-0:&&.&%*$"-#&/&'*54   6/*0/#"/,#*8&&,-:1":30--5"9&4   6/*0/#"/,#*8&&,-:1":30--5"9&4   6/*0/#"/,#*8&&,-:1":30--5"9&4   6/*0/#"/,/"4&3*&4#0/%4 4&.*"//6"-    6/*0/#"/,/"4&3*&4#0/%4 4&.*"//6"-   6/*0/#"/,/"*%4&3*&4#0/%4 4&.*"//6"-   6/*0/#"/,/"4&3*&4"#0/%4 4&.*"//6"-    6/*0/#"/,/"4&3*&4##0/%4 4&.*"//6"-    6/*0/#"/,/"4&3*&4"#0/%4 4&.*"//6"-    6/*0/#"/,/"4&3*&4#0/%4 4&.*"//6"-   64#"/,$"-$"3%&91&/4&4 .0/5)-:   70:"'*/"/$*"-#*8&&,-:"1-"/   PURPOSE: "UUBDIFEJTUIFMJTUPGEFNBOETGPSUIF#PBSEhTJOGPSNBUJPO FISCAL IMPACT: STAFF REPORT TYPE MEETING: SUBMITTED BY: APPROVED BY: APPROVED BY: SUBJECT: 3FHVMBS#PBSE &JE'BLIPVSJ 'JOBODF.BOBHFS 5SFBTVSZ"DDPVOUJOH4FSWJDFT +PTFQI#FBDIFN $IJFG'JOBODJBM0GGJDFS +PTF.BSUJOF[ (FOFSBM.BOBHFS "DDPVOUT1BZBCMF%FNBOE-JTU MEETING DATE: W.O./G.F. NO: DIV. NO. 0DUPCFS  70:"'*/"/$*"-#*8&&,-:"1-"/   70:"'*/"/$*"-#*8&&,-:"1-"/   TOTAL CASH DISBURSEMENTS $ 20,199,746.75 RECOMMENDED ACTION: 5IBUUIF#PBSESFDFJWFEUIFBUUBDIFEMJTUPGEFNBOET +C"UUBDINFOU Check Total 2,655.50 1,056.50 21,396.40 CHECK REGISTER Otay Water District Date Range: 8/20/2020 - 9/23/2020 Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount 2054840 09/02/20 15416 24 HOUR ELEVATOR INC 86640 07/31/20 ELEVATOR REPAIR SERVICE 1,079.09 1,079.09 2054902 09/16/20 20364 2901 GATE FIVE PLACE LLC Ref002605836 09/14/20 UB Refund Cst #0000242231 1,084.79 1,084.79 2054841 09/02/20 18122 ACC BUSINESS 202261780 08/27/20 INTERNET CIRCUIT SERVICES FY20-22 1,013.64 1,013.64 2054866 09/09/20 17989 ADS CORP 22446.22-0820 08/22/20 SEWER FLOW MONITORING 695.00 695.00 2054791 08/26/20 18755 ADVANCED INFRASTRUCTURE 200497 07/16/20 RADIO DETECTION LOCATOR RECEIVER 9,159.83 9,159.83 2054867 09/09/20 07732 AIRGAS SPECIALTY PRODUCTS INC 131665796 08/14/20 AS-NEEDED AQUA AMMONIA 723.50 131665847 08/14/20 AS-NEEDED AQUA AMMONIA 677.50 131665848 08/14/20 AS-NEEDED AQUA AMMONIA 646.50 131666296 08/18/20 AS-NEEDED AQUA AMMONIA 317.50 131665782 08/14/20 AS-NEEDED AQUA AMMONIA 290.50 2054931 09/23/20 07732 AIRGAS SPECIALTY PRODUCTS INC 131667974 08/31/20 AS-NEEDED AQUA AMMONIA 603.50 131668188 08/31/20 AS-NEEDED AQUA AMMONIA 453.00 2054792 08/26/20 15024 AIRX UTILITY SURVEYORS INC 3007312020 08/04/20 UTILITY LOCATING (JULY 2020)10,930.00 10,930.00 2054932 09/23/20 15024 AIRX UTILITY SURVEYORS INC 3108312020 09/02/20 UTILITY LOCATING (AUG 2020)21,290.00 21,290.00 2054793 08/26/20 14462 ALYSON CONSULTING CM202030 08/09/20 CMIS (JULY 2020)14,672.40 CM202032 08/09/20 CMIS (JULY 2020)3,200.00 CM202029 08/09/20 CMIS (JULY 2020)1,764.00 CM202031 08/09/20 CMIS (JULY 2020)1,760.00 2054839 09/02/20 20249 ANA MARIA ALVAREZ Ref002603495 08/31/20 UB Refund Cst #0000066888 120.00 120.00 2054933 09/23/20 03492 AQUA-METRIC SALES COMPANY 0078891 08/28/20 SENSUS OMNI T2 METERS 8,305.84 8,305.84 2054868 09/09/20 01971 ARMORCAST PRODUCTS COMPANY 0208923 08/19/20 TORSION FRAME ARM PLATES 1,344.00 1,344.00 2054903 09/16/20 17264 ARTIANO SHINOFF ABED 304005 08/19/20 PROFESSIONAL SERVICES (THRU JULY 2020)49,316.13 49,316.13 2054904 09/16/20 07785 AT&T 000015160077 08/12/20 TELEPHONE SERVICES (7/12/20 - 8/11/20)4,493.27 4,493.27 2054934 09/23/20 08024 BACKGROUND PROFILES INC 20305 08/31/20 BACKGROUND CHECK 40.00 40.00 2054843 09/02/20 08024 BACKGROUND PROFILES INC 20195 07/31/20 BACKGROUND CHECK 30.00 30.00 2054905 09/16/20 20366 BETH KEIPER Ref002605838 09/14/20 UB Refund Cst #0000252285 19.20 19.20 2054869 09/09/20 04209 BRAX COMPANY INC 3221 08/24/20 REPLACE PUMP #4 AT 927-1 PS 53,088.98 53,088.98 2054906 09/16/20 20371 BRITTANY GOLDADE Ref002605843 09/14/20 UB Refund Cst #0000257405 7.86 7.86 2054935 09/23/20 08156 BROWNSTEIN HYATT FARBER 814572 09/11/20 LEGISLATIVE ADVOCACY CONSULT SERV 1,942.38 1,942.38Page 1 of 11 Check Total CHECK REGISTER Otay Water District Date Range: 8/20/2020 - 9/23/2020 Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount 382.00 2,547.00 2,280.00 28,474.78 2054935 09/23/20 08156 BROWNSTEIN HYATT FARBER 814572 09/11/20 LEGISLATIVE ADVOCACY CONSULT SERV 1,942.38 1,942.38 2054794 08/26/20 02989 CALIFORNIA MUNICIPAL 20081007 08/10/20 DEBT STATEMENT 525.00 525.00 2054795 08/26/20 15177 CAROLLO ENGINEERS INC 0189372 08/06/20 DESIGN/CONSTRUCT 870-2 PS (JULY 2020)2,296.25 2,296.25 2054844 09/02/20 20351 CARRILLO PROPERTY INVESTMENTS Ref002603507 08/31/20 UB Refund Cst #0000260256 76.50 76.50 2054907 09/16/20 19582 CARRIVEAU, MATTHEW 060120 06/01/20 EXPENSE REIMBURSEMENT 192.00 MC090820 09/09/20 TUITION REIMBURSEMENT 190.00 2054870 09/09/20 15800 CHAN, SIU MAN POLLY PC090220 09/02/20 TUITION REIMBURSEMENT 756.47 756.47 2054845 09/02/20 20341 CHEUNG LUI Ref002603497 08/31/20 UB Refund Cst #0000080156 124.65 124.65 2054796 08/26/20 01828 CHICAGO TITLE COMPANY 737200111681 08/04/20 TITLE REPORT 500.00 500.00 2054798 08/26/20 04119 CLARKSON LAB & SUPPLY INC 17348 07/31/20 BACTERIOLOGICAL TESTING (7/30/20-8/2/20)799.00 17346 07/31/20 BACTERIOLOGICAL TESTING (7/27/20-7/28/20)302.00 17342 07/31/20 BACTERIOLOGICAL TESTING (7/20/20-7/21/20)226.00 17343 07/31/20 BACTERIOLOGICAL TESTING (7/20/20-7/21/20)226.00 17345 07/31/20 BACTERIOLOGICAL TESTING (7/27/20-7/28/20)226.00 17340 07/31/20 BACTERIOLOGICAL TESTING (7/15/20)206.00 17339 07/31/20 BACTERIOLOGICAL TESTING (7/6/20)178.00 17341 07/31/20 BACTERIOLOGICAL TESTING (7/16/20)178.00 17344 07/31/20 BACTERIOLOGICAL TESTING (7/28/20)178.00 17347 07/31/20 BACTERIOLOGICAL TESTING (7/31/20)28.00 2054936 09/23/20 04119 CLARKSON LAB & SUPPLY INC 17720 08/31/20 BACTERIOLOGICAL TESTING (8/25/20-8/26/20)680.00 17717 08/31/20 BACTERIOLOGICAL TESTING (8/3/20-8/5/20)630.00 17718 08/31/20 BACTERIOLOGICAL TESTING (8/11/20-8/12/20)490.00 17721 08/31/20 BACTERIOLOGICAL TESTING (8/25/20-8/26/20)302.00 17719 08/31/20 BACTERIOLOGICAL TESTING (8/20/20)178.00 2054871 09/09/20 20335 CLAYTON CONTROLS INC 356504 08/20/20 VFD FOR 850-2 PS 11,943.88 11,943.88 2054799 08/26/20 18331 CORE & MAIN LP M756674 08/05/20 INVENTORY 3,879.00 3,879.00 2054937 09/23/20 18331 CORE & MAIN LP M436296 08/26/20 MASTER METER BODIES & 3G METERS 24,110.51 24,110.51 2054872 09/09/20 18331 CORE & MAIN LP M858284 08/20/20 INVENTORY 24,499.45 M838022 08/20/20 INVENTORY 3,762.63 M850046 08/18/20 INVENTORY 212.70 2054800 08/26/20 00099 COUNTY OF SAN DIEGO DPWMWD0720 08/10/20 EXCAVATION PERMIT (JULY 2020)4,794.00 4,794.00 Page 2 of 11 Check Total CHECK REGISTER Otay Water District Date Range: 8/20/2020 - 9/23/2020 Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount 510.00 3,581.20 1,530.00 1,199.00 6,183.53 1,655.48 2054800 08/26/20 00099 COUNTY OF SAN DIEGO DPWMWD0720 08/10/20 EXCAVATION PERMIT (JULY 2020)4,794.00 4,794.00 2054801 08/26/20 00184 COUNTY OF SAN DIEGO 193E602340720 08/04/20 SHUT DOWN TEST (6/24/20)255.00 193E602130720 08/04/20 SHUT DOWN TEST (6/24/18)255.00 2054938 09/23/20 00184 COUNTY OF SAN DIEGO 193E602120820 09/04/20 SHUT DOWN TEST (8/18/20)994.50 193E602200820 09/04/20 SHUT DOWN TEST (8/21/20)944.50 193E602370820 09/04/20 SHUT DOWN TEST (8/19/20)918.00 193E602240820 09/04/20 SHUT DOWN TEST (8/12/20)255.00 193E602480820 09/04/20 SHUT DOWN TEST (8/12/20)255.00 193E633120820 09/04/20 SHUT DOWN TEST (8/14/20)122.40 193E631910820 09/04/20 DEVELOPER INSPECTION (8/10/20)91.80 2054939 09/23/20 00184 COUNTY OF SAN DIEGO 193E633210920 09/09/20 DEVELOPER PLAN CHECK (9/9/20)765.00 193E633220920 09/09/20 DEVELOPER PLAN CHECK (9/9/20)765.00 2054873 09/09/20 00184 COUNTY OF SAN DIEGO 193E633170920 09/01/20 DEVELOPER PLAN CHECK 765.00 765.00 2054940 09/23/20 02122 COUNTY OF SAN DIEGO 05714RI2020 09/01/20 PERMIT FEES # 05714 (SEPT 2020-SEPT 2021)694.00 05774RI2020 09/01/20 PERMIT FEES # 05774 (SEPT 2020-SEPT 2021)505.00 2054846 09/02/20 07494 COUNTY OF SAN DIEGO DPW2017-00011 08/20/20 SEWER SERVICE (2020/2021)5,748.07 DPW2018-00341 08/20/20 OWD PUMP STATION SEWER SVC CHARGES 435.46 2054908 09/16/20 08479 COUNTY OF SAN DIEGO OWD-090220-1 09/02/20 SEWER MAIN CLEANING 1,722.36 1,722.36 2054909 09/16/20 03098 CROUCHER, GARY D 071219090519 09/05/19 MILEAGE REIMBURSEMENT 7/12/19-9/5/19 29.00 29.00 2054910 09/16/20 11797 D&H WATER SYSTEMS INC 2020-0929 08/19/20 CHEMICAL FEED PUMP EQUIPMENT 2,247.90 2,247.90 2054911 09/16/20 20368 DIANA ACOSTA Ref002605840 09/14/20 UB Refund Cst #0000256977 34.87 34.87 2054874 09/09/20 05134 DYCHITAN, MARISSA MD090220 09/02/20 TUITION REIMBURSEMENT 3,000.00 3,000.00 2054847 09/02/20 20344 DYLAN JONES Ref002603500 08/31/20 UB Refund Cst #0000240033 50.00 50.00 2054941 09/23/20 20375 EDWARD RICHARDSON 8003092220 09/22/20 CUSTOMER REFUND 181.10 181.10 2054802 08/26/20 00331 EMPLOYMENT DEVELOPMENT DEPT 9520238408102 07/29/20 UNEMPLOYMENT INSURANCE 8,272.00 8,272.00 2054803 08/26/20 03725 ENVIRONMENTAL SYSTEMS RESEARCH 93878051 07/30/20 ARCGIS SOFTWARE LICENSE 6,000.00 6,000.00 2054804 08/26/20 03546 FERGUSON WATERWORKS # 1083 0724505-1 07/29/20 INVENTORY 1,208.96 072216 07/28/20 INVENTORY 446.52 2054875 09/09/20 03546 FERGUSON WATERWORKS # 1083 0728020 08/17/20 INVENTORY 8,427.94 Page 3 of 11 Check Total CHECK REGISTER Otay Water District Date Range: 8/20/2020 - 9/23/2020 Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount 8,624.05 6,773.72 511.50 328.98 548.02 0728020-1 08/20/20 INVENTORY 196.11 2054942 09/23/20 03546 FERGUSON WATERWORKS # 1083 0729303 08/26/20 INVENTORY 2,238.38 0728703 08/27/20 INVENTORY 1,685.43 0729305 08/26/20 INVENTORY 1,088.55 0729303-1 08/27/20 INVENTORY 1,084.04 0729305-1 08/27/20 INVENTORY 677.32 2054943 09/23/20 17888 FIRST AMERICAN DATA TREE LLC 9003400820 08/31/20 DOCUMENT SERVICE (MONTHLY)99.00 99.00 2054805 08/26/20 17888 FIRST AMERICAN DATA TREE LLC 9003400720 07/31/20 DOCUMENT SERVICE (MONTHLY)99.00 99.00 2054912 09/16/20 20372 FJ WILLERT CONTRACTING CO INC Ref002605845 09/14/20 UB Refund Cst #0000260121 1,081.05 1,081.05 2054944 09/23/20 11962 FLEETWASH INC 1976645 08/28/20 FLEET WASH SERVICES FY21 31.17 31.17 2054876 09/09/20 11962 FLEETWASH INC 1832010 03/06/20 FLEET WASH SERVICES FY21 212.03 1966108 08/14/20 FLEET WASH SERVICES FY21 196.55 1972352 08/21/20 FLEET WASH SERVICES FY21 102.92 2054806 08/26/20 11962 FLEETWASH INC 1952842 07/31/20 FLEET WASH SERVICES FY21 187.04 1961444 08/07/20 FLEET WASH SERVICES FY21 141.94 2054848 09/02/20 20336 FLORENCIA OCHOA Ref002603491 08/31/20 UB Refund Cst #0000015065 128.02 128.02 2054913 09/16/20 19640 FRANCHISE TAX BOARD Ben2605869 09/17/20 BI-WEEKLY PAYROLL DEDUCTION 75.00 75.00 2054849 09/02/20 19640 FRANCHISE TAX BOARD Ben2603534 09/03/20 BI-WEEKLY PAYROLL DEDUCTION 75.00 75.00 2054914 09/16/20 20216 FRANCHISE TAX BOARD Ben2605871 09/17/20 BI-WEEKLY PAYROLL DEDUCTION 310.44 310.44 2054877 09/09/20 03094 FULLCOURT PRESS 36876 08/20/20 PRINTING NEWSLETTERS 3,029.12 3,029.12 2054850 09/02/20 20340 GABRIELA VALENZUELA Ref002603496 08/31/20 UB Refund Cst #0000072142 72.84 72.84 2054915 09/16/20 17855 GASTELUM, HECTOR 120119123119 12/31/19 MILEAGE REIMBURSEMENT 472.12 010120013120 01/31/20 MILEAGE REIMBURSEMENT 75.90 2054878 09/09/20 10817 GEXPRO S128602328.001 08/24/20 RX3I PLC MODULES 55,499.33 55,499.33 2054945 09/23/20 12907 GREENRIDGE LANDSCAPE INC 19747 08/25/20 LANDSCAPING SERVICES 279.00 279.00 2054879 09/09/20 12907 GREENRIDGE LANDSCAPE INC 19733 08/24/20 LANDSCAPING SERVICES 9,542.50 9,542.50 2054946 09/23/20 00174 HACH COMPANY 12101188 08/30/20 HACH EQUIPMENT ANNUAL PM SERVICE 18,485.00 18,485.00 2054851 09/02/20 00174 HACH COMPANY 12063335 08/04/20 FY21 MONOCHLORAMINE ANALYZER SUPPLY 4,304.99 4,304.99 2054807 08/26/20 00174 HACH COMPANY 12062816 08/03/20 HACH PM SERVICE FOR 5500SC ANALYZERS 6,708.00 6,708.00Page 4 of 11 Check Total CHECK REGISTER Otay Water District Date Range: 8/20/2020 - 9/23/2020 Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount 2,852.34 14,114.77 12,931.78 2054807 08/26/20 00174 HACH COMPANY 12062816 08/03/20 HACH PM SERVICE FOR 5500SC ANALYZERS 6,708.00 6,708.00 2054916 09/16/20 19978 HASA INC.705507 08/20/20 AS-NEEDED SODIUM HYPOCLORITE FY21 1,115.12 705506 08/20/20 AS-NEEDED SODIUM HYPOCLORITE FY21 947.07 705508 08/20/20 AS-NEEDED SODIUM HYPOCLORITE FY21 666.62 705509 08/20/20 AS-NEEDED SODIUM HYPOCLORITE FY21 123.53 2054947 09/23/20 19978 HASA INC.709656 09/07/20 AS-NEEDED SODIUM HYPOCLORITE FY21 2,225.78 707877 08/31/20 AS-NEEDED SODIUM HYPOCLORITE FY21 2,114.49 709557 09/03/20 AS-NEEDED SODIUM HYPOCLORITE FY21 1,352.16 707193 08/27/20 AS-NEEDED SODIUM HYPOCLORITE FY21 1,279.82 709558 09/03/20 AS-NEEDED SODIUM HYPOCLORITE FY21 1,224.18 706840 08/26/20 AS-NEEDED SODIUM HYPOCLORITE FY21 1,168.53 709559 09/03/20 AS-NEEDED SODIUM HYPOCLORITE FY21 1,168.53 707194 08/27/20 AS-NEEDED SODIUM HYPOCLORITE FY21 1,001.60 706841 08/26/20 AS-NEEDED SODIUM HYPOCLORITE FY21 632.12 709657 09/07/20 AS-NEEDED SODIUM HYPOCLORITE FY21 556.45 706839 08/26/20 AS-NEEDED SODIUM HYPOCLORITE FY21 528.62 709655 09/07/20 AS-NEEDED SODIUM HYPOCLORITE FY21 411.77 707876 08/31/20 AS-NEEDED SODIUM HYPOCLORITE FY21 278.22 707195 08/27/20 AS-NEEDED SODIUM HYPOCLORITE FY21 89.03 709512 09/02/20 AS-NEEDED SODIUM HYPOCLORITE FY21 83.47 2054808 08/26/20 19978 HASA INC.701757 08/04/20 AS-NEEDED SODIUM HYPOCLORITE FY21 2,392.71 703226 08/10/20 AS-NEEDED SODIUM HYPOCLORITE FY21 2,003.20 700678 07/30/20 AS-NEEDED SODIUM HYPOCLORITE FY21 1,535.79 700919 07/30/20 AS-NEEDED SODIUM HYPOCLORITE FY21 1,112.89 702512 08/06/20 AS-NEEDED SODIUM HYPOCLORITE FY21 1,112.89 702514 08/06/20 AS-NEEDED SODIUM HYPOCLORITE FY21 1,057.25 700225 07/28/20 AS-NEEDED SODIUM HYPOCLORITE FY21 973.78 701758 08/04/20 AS-NEEDED SODIUM HYPOCLORITE FY21 934.83 702516 08/06/20 AS-NEEDED SODIUM HYPOCLORITE FY21 779.02 702101 08/05/20 AS-NEEDED SODIUM HYPOCLORITE FY21 406.20 702519 08/06/20 AS-NEEDED SODIUM HYPOCLORITE FY21 333.87 700548 07/29/20 AS-NEEDED SODIUM HYPOCLORITE FY21 289.35 2054880 09/09/20 19978 HASA INC.706158 08/24/20 AS-NEEDED SODIUM HYPOCLORITE FY21 2,259.17 704345 08/14/20 AS-NEEDED SODIUM HYPOCLORITE FY21 1,722.75 Page 5 of 11 Check Total CHECK REGISTER Otay Water District Date Range: 8/20/2020 - 9/23/2020 Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount 9,291.52 100.96 23,691.71 4,277.15 19,905.71 21,446.64 705505 08/20/20 AS-NEEDED SODIUM HYPOCLORITE FY21 1,408.92 704646 08/17/20 AS-NEEDED SODIUM HYPOCLORITE FY21 1,324.34 704344 08/14/20 AS-NEEDED SODIUM HYPOCLORITE FY21 1,193.02 703710 08/12/20 AS-NEEDED SODIUM HYPOCLORITE FY21 667.73 705190 08/19/20 AS-NEEDED SODIUM HYPOCLORITE FY21 487.45 704346 08/14/20 AS-NEEDED SODIUM HYPOCLORITE FY21 228.14 2054917 09/16/20 20332 HAZARD CONSTRUCTION Ref002605844 09/14/20 UB Refund Cst #0000257468 435.15 435.15 2054948 09/23/20 19825 HDR ENGINEERING INC 1200295819 08/21/20 CAPACITY FEE STUDY 917.50 917.50 2054809 08/26/20 00062 HELIX WATER DISTRICT 4330081120 08/11/20 WATER USAGE (6/5/20-8/5/20)50.48 5428381120 08/11/20 WATER USAGE (6/5/20-8/5/20)50.48 2054918 09/16/20 20363 HUGO CAMOU Ref002605835 09/14/20 UB Refund Cst #0000059383 135.43 135.43 2054881 09/09/20 15622 ICF JONES & STOKES INC 0149021 08/17/20 SAN MIGUEL HMA (JULY 2020)18,778.04 0149055 08/18/20 ENVIRONMENTAL SVCS (JULY 2020)2,058.97 0148928 08/13/20 ENVIRONMENTAL SVCS (JULY 2020)1,970.00 0149059 08/18/20 ENVIRONMENTAL SVCS (JULY 2020)884.70 2054810 08/26/20 17816 INDUSTRIAL SCIENTIFIC CORP 2330318 06/12/20 GAS DETECTION PROGRAM 316.93 316.93 2054852 09/02/20 17816 INDUSTRIAL SCIENTIFIC CORP 2332889 06/30/20 GAS DETECTION PROGRAM 855.43 2325300 05/31/20 GAS DETECTION PROGRAM 855.43 2309491 03/31/20 GAS DETECTION PROGRAM 855.43 2281178 12/31/19 GAS DETECTION PROGRAM 855.43 2340597 07/31/20 GAS DETECTION PROGRAM 855.43 2054882 09/09/20 17816 INDUSTRIAL SCIENTIFIC CORP 2346170 08/12/20 GAS DETECTION PROGRAM 316.93 316.93 2054949 09/23/20 17816 INDUSTRIAL SCIENTIFIC CORP 2349301 08/31/20 GAS DETECTION PROGRAM 855.43 855.43 2054950 09/23/20 08969 INFOSEND INC 177696 08/31/20 BILL PROCESSING SERVICES 11,967.30 177695 08/31/20 BILL PROCESSING SERVICES 5,381.57 177995 09/02/20 BILL PROCESSING SERVICES 2,556.84 2054811 08/26/20 08969 INFOSEND INC 175902 07/31/20 BILL PROCESSING SERVICES 13,170.66 175901 07/31/20 BILL PROCESSING SERVICES 5,708.80 176482 08/03/20 BILL PROCESSING SERVICES 2,567.18 2054812 08/26/20 17106 IWG TOWERS ASSETS II LLC 565310 09/01/20 ANTENNA SUBLEASE 1,938.00 1,938.00 2054951 09/23/20 10563 JCI JONES CHEMICALS INC 832074 09/03/20 AS-NEEDED CHLORINE GAS 2,450.40 2,450.40 Page 6 of 11 Check Total CHECK REGISTER Otay Water District Date Range: 8/20/2020 - 9/23/2020 Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount 34,281.25 1,678.50 2054951 09/23/20 10563 JCI JONES CHEMICALS INC 832074 09/03/20 AS-NEEDED CHLORINE GAS 2,450.40 2,450.40 2054883 09/09/20 10563 JCI JONES CHEMICALS INC 829539 08/11/20 AS-NEEDED CHLORINE GAS 2,450.40 2,450.40 2054853 09/02/20 20346 JENNIFER RODRIGUEZ Ref002603502 08/31/20 UB Refund Cst #0000256999 19.17 19.17 2054854 09/02/20 20345 JOHN MILLIRON Ref002603501 08/31/20 UB Refund Cst #0000256812 18.96 18.96 2054855 09/02/20 20349 KEARNY PCCP OTAY 311 LLC Ref002603505 08/31/20 UB Refund Cst #0000257328 879.82 879.82 2054856 09/02/20 20347 KIARA MAKROS Ref002603503 08/31/20 UB Refund Cst #0000257166 37.65 37.65 2054884 09/09/20 05840 KIRK PAVING INC 7588 08/04/20 AS-NEEDED PAVING SERVICE FY21 16,350.75 7591 08/07/20 AS-NEEDED PAVING SERVICE FY21 7,503.25 7289 08/05/20 AS-NEEDED PAVING SERVICE FY21 5,322.75 7590 08/06/20 AS-NEEDED PAVING SERVICE FY21 5,104.50 2054857 09/02/20 20342 LANCE HAYDEN Ref002603498 08/31/20 UB Refund Cst #0000184637 8.60 8.60 2054813 08/26/20 15615 LAYFIELD USA CORPORATION e09211 07/28/20 AS-NEEDED FLOATING COVER REPAIRS 2,205.06 2,205.06 2054858 09/02/20 20348 LAZARO AVILA Ref002603504 08/31/20 UB Refund Cst #0000257229 5.70 5.70 2054814 08/26/20 14513 LB CIVIL CONSTRUCTION INC 307312020 08/04/20 DICTIONARY HILL WTR LINE REPLACE (7/31/20)403,536.25 403,536.25 2054919 09/16/20 20373 LUSARDI CONSTRUCTION Ref002605846 09/14/20 UB Refund Cst #0000260632 2,470.30 2,470.30 2054815 08/26/20 10512 MAIL MANAGEMENT GROUP INC OWD-12077 08/04/20 PRINTING 661.36 661.36 2054885 09/09/20 10512 MAIL MANAGEMENT GROUP INC OWD-12085 08/12/20 PRINTING 368.33 368.33 2054816 08/26/20 17325 MALLORY SAFETY & SUPPLY LLC 4885095 07/28/20 SPILL KIT 683.02 683.02 2054842 09/02/20 20337 ALVARO FLORES Ref002603492 08/31/20 UB Refund Cst #0000025752 99.26 99.26 2054952 09/23/20 20337 MARIA FLORES Ref002603492 08/31/20 UB Refund Cst #0000025752 99.26 99.26 2054920 09/16/20 02882 MAYER REPROGRAPHICS INC I21543624 08/31/20 REPROGRAPHIC SERVICES 1,114.66 I21543626 08/31/20 REPROGRAPHIC SERVICES 563.84 2054921 09/16/20 20367 MCCARTHY BUILDING CO Ref002605839 09/14/20 UB Refund Cst #0000252899 2,046.00 2,046.00 2054817 08/26/20 16608 MICHAEL BAKER INT'L INC 1090255 07/29/20 870-2 PS INSPECT SERVICES (ENDING 6/30/20)33,580.00 33,580.00 2054886 09/09/20 16613 MISSION RESOURCE CONSERVATION 415 09/01/20 OUTSIDE SERVICES 89.00 89.00 2054818 08/26/20 19765 MORAES/PHAM & ASSOCIATES 201055 07/31/20 ELECTRICAL ENG SVCS (ENDING 7/31/20)6,150.00 6,150.00 2054953 09/23/20 19765 MORAES/PHAM & ASSOCIATES 201056 08/31/20 ELECTRICAL ENG SVCS (ENDING 8/31/20)2,100.00 2,100.00 2054819 08/26/20 16607 NINTEX USA LLC 26490 07/31/20 WORKFLOW & FORMS SOFTWARE 8,744.00 8,744.00Page 7 of 11 Check Total CHECK REGISTER Otay Water District Date Range: 8/20/2020 - 9/23/2020 Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount 4,092.00 2,678.26 1,622.86 2054819 08/26/20 16607 NINTEX USA LLC 26490 07/31/20 WORKFLOW & FORMS SOFTWARE 8,744.00 8,744.00 2054820 08/26/20 03517 NOBEL SYSTEMS 14849 07/31/20 CONSULTING SERVICES 4,920.00 4,920.00 2054954 09/23/20 02027 NTH GENERATION COMPUTING INC 37196H 08/28/20 ARUBA NTWK ACCESS CONTROL SUPP SVCS 2,160.00 2,160.00 2054887 09/09/20 06646 PACIFIC HYDROTECH CORPORATION 4200081420 08/14/20 CUSTOMER REFUND 2,046.00 0100081420 08/14/20 CUSTOMER REFUND 2,046.00 2054955 09/23/20 13122 PINNACLE BUSINESS SOLUTIONS 39908 09/04/20 TAPE LIBRARY SUPPORT RENEWAL 1,161.00 1,161.00 2054888 09/09/20 15081 PINOMAKI DESIGN 5999 09/01/20 GRAPHIC DESIGN SERVICES 297.50 297.50 2054889 09/09/20 19896 PIPERIN CORPORATION 3700081720 08/17/20 CUSTOMER REFUND 2,046.00 2,046.00 2054922 09/16/20 16208 POSM SOFTWARE LLC 3047 07/29/20 PIPELINE OBSERVE SYST MGMT SFTW SUPP 5,500.00 5,500.00 2054890 09/09/20 10819 PREDICTIVE MAINTENANCE 202008 08/19/20 VIBRATION TESTING 7,500.00 7,500.00 2054821 08/26/20 03613 PSOMAS 164909 08/05/20 LAND SURVEYING SERVICES (ENDING 7/23/20)5,472.00 5,472.00 2054956 09/23/20 17616 RAMIREZ, LARRY LR092120 09/21/20 TUITION REIMBURSEMENT 1,604.02 1,604.02 2054859 09/02/20 20339 RANDALL KROGMAN Ref002603494 08/31/20 UB Refund Cst #0000055258 82.07 82.07 2054923 09/16/20 20369 REGAL RIGGINS Ref002605841 09/14/20 UB Refund Cst #0000257329 21.43 21.43 2054822 08/26/20 15647 RFYEAGER ENGINEERING LLC 20243 07/31/20 CORROSION SERVICES (JULY 2020)10,645.00 10,645.00 2054957 09/23/20 15647 RFYEAGER ENGINEERING LLC 20265 09/01/20 CORROSION SERVICES (AUG 2020)28,665.00 28,665.00 2054891 09/09/20 00521 RICK POST WELD & WET TAPPING 12639 08/24/20 WELDING-VFD TRAILER 600.00 600.00 2054892 09/09/20 20354 ROBERT LANDRY 2106090320 09/03/20 EXPENSE REIMBURSEMENT - CLAIM 2,879.00 2,879.00 2054860 09/02/20 20343 SALLY GONZALEZ Ref002603499 08/31/20 UB Refund Cst #0000198273 130.96 130.96 2054893 09/09/20 02586 SAN DIEGO COUNTY ASSESSOR 202000624 09/01/20 ASSESSOR DATA (MONTHLY)125.00 125.00 2054894 09/09/20 00003 SAN DIEGO COUNTY WATER AUTH 1918 10/22/19 SOCAL WATERSMART HEW HET WBIC 1,028.96 1979 03/05/20 SOCAL WATERSMART HEW HET WBIC 840.00 1911 10/10/19 SOCAL WATERSMART HEW HET WBIC 809.30 2054823 08/26/20 00121 SAN DIEGO GAS & ELECTRIC 080720 08/07/20 UTILITY EXPENSES (MONTHLY)1,256.76 082120 08/21/20 UTILITY EXPENSES (MONTHLY)366.10 2054861 09/02/20 00121 SAN DIEGO GAS & ELECTRIC 082720B 08/27/20 UTILITY EXPENSES (MONTHLY)65,507.04 082620 08/26/20 UTILITY EXPENSES (MONTHLY)34,801.55 082020 08/20/20 UTILITY EXPENSES (MONTHLY)27,344.81 Page 8 of 11 Check Total CHECK REGISTER Otay Water District Date Range: 8/20/2020 - 9/23/2020 Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount 141,541.94 83,362.43 99,672.84 13,953.14 082720 08/27/20 UTILITY EXPENSES (MONTHLY)13,748.35 082520 08/25/20 UTILITY EXPENSES (MONTHLY)84.68 082720A 08/27/20 UTILITY EXPENSES (MONTHLY)55.51 2054895 09/09/20 00121 SAN DIEGO GAS & ELECTRIC 6157082820 08/28/20 UTILITY EXPENSES (MONTHLY)61,219.41 083120A 08/31/20 UTILITY EXPENSES (MONTHLY)18,674.13 083120B 08/31/20 UTILITY EXPENSES (MONTHLY)1,772.51 082520A 08/25/20 UTILITY EXPENSES (MONTHLY)847.53 090220 09/02/20 UTILITY EXPENSES (MONTHLY)438.03 083120 08/31/20 UTILITY EXPENSES (MONTHLY)217.70 090120 09/01/20 UTILITY EXPENSES (MONTHLY)117.40 082820 08/28/20 UTILITY EXPENSES (MONTHLY)75.72 2054924 09/16/20 00121 SAN DIEGO GAS & ELECTRIC 090420 09/04/20 UTILITY EXPENSES (MONTHLY)98,878.53 090820 09/08/20 UTILITY EXPENSES (MONTHLY)687.66 090320 09/03/20 UTILITY EXPENSES (MONTHLY)106.65 2054958 09/23/20 00121 SAN DIEGO GAS & ELECTRIC 091820 09/18/20 UTILITY EXPENSES (MONTHLY)80.66 80.66 2054862 09/02/20 20350 SELENE FINANCE LP Ref002603506 08/31/20 UB Refund Cst #0000260209 97.63 97.63 2054863 09/02/20 20352 SKYLARK ENTERPRISES INC Ref002603508 08/31/20 UB Refund Cst #0000260465 514.95 514.95 2054824 08/26/20 15176 SOUTHCOAST HEATING & AIR 1179984 07/28/20 REPLACE AC UNIT FOR OPS BUILDING 38,870.00 38,870.00 2054825 08/26/20 20265 SPECIALTY MOWING SERVICES INC.1143 07/29/20 VEGETATION MITIGATION 40,030.00 40,030.00 2054864 09/02/20 05755 STATE WATER RESOURCES 4298282720LZ 08/27/20 CERTIFICATION RENEWAL 80.00 80.00 2054826 08/26/20 05755 STATE WATER RESOURCES 26305082420 08/24/20 CERTIFICATION RENEWAL 60.00 60.00 2054827 08/26/20 15974 SUN LIFE FINANCIAL 38166080120 08/01/20 LIFE INSURANCE AND STD/LTD (AUGUST 2020)10,014.18 10,014.18 2054896 09/09/20 10339 SUPREME OIL COMPANY 487644 08/12/20 UNLEADED FUEL & DIESEL 9,738.54 487645 08/12/20 UNLEADED FUEL & DIESEL 4,214.60 2054828 08/26/20 18376 SVPR COMMUNICATIONS 1368 07/31/20 COMMUNICATIONS CONSULTING SERVICES 2,500.00 2,500.00 2054959 09/23/20 18376 SVPR COMMUNICATIONS 1369 08/31/20 COMMUNICATIONS CONSULTING SERVICES 2,500.00 2,500.00 2054960 09/23/20 17704 T&T JANITORIAL INC 2018-6328 08/31/20 JANITORIAL SERVICES 4,780.00 4,780.00 2054829 08/26/20 17704 T&T JANITORIAL INC 2018-6274 07/31/20 JANITORIAL SERVICES 4,780.00 4,780.00 2054925 09/16/20 18922 TAMAYO, JUAN 083120 08/31/20 EXPENSE REIMBURSEMENT 130.50 130.50 2054830 08/26/20 19272 THARSOS INC 707312020 07/31/20 TLOPS REDUNDANCY PROJ (ENDING 7/31/20)53,442.63 53,442.63Page 9 of 11 Check Total CHECK REGISTER Otay Water District Date Range: 8/20/2020 - 9/23/2020 Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount 1,155.90 1,345.65 648.83 3,227.87 250.00 250.00 2054830 08/26/20 19272 THARSOS INC 707312020 07/31/20 TLOPS REDUNDANCY PROJ (ENDING 7/31/20)53,442.63 53,442.63 2054897 09/09/20 13714 THE EAST COUNTY CALIFORNIAN 00098138 08/24/20 OUTSIDE SERVICES - LEGAL ADVERTISING 287.00 287.00 2054797 08/26/20 13564 THE STAR NEWS PUBLISHING CO 00098135 08/23/20 OUTSIDE SERVICES - LEGAL ADVERTISING 210.12 210.12 2054926 09/16/20 19536 TREBOR SHORING RENTALS 222234-3 08/31/20 SHORING RENTALS 1,724.12 1,724.12 2054831 08/26/20 00427 UNDERGROUND SERVICE ALERT 720200504 08/01/20 UNDERGROUND ALERTS (MONTHLY)678.25 dsb20194178 08/01/20 DIG SAFE BOARD FEES (MONTHLY)477.65 2054961 09/23/20 00427 UNDERGROUND SERVICE ALERT 820200504 09/01/20 UNDERGROUND ALERTS (MONTHLY)868.00 dsb20194811 09/01/20 DIG SAFE BOARD FEES (MONTHLY)477.65 2054898 09/09/20 15675 UNITED SITE SERVICES INC 114-10841026 08/22/20 PORT. TOILET RENTAL 90.10 90.10 2054927 09/16/20 15675 UNITED SITE SERVICES INC 114-10853419 08/26/20 PORT. TOILET RENTAL 439.85 114-10853373 08/26/20 PORT. TOILET RENTAL 110.07 114-10853372 08/26/20 PORT. TOILET RENTAL 98.91 2054899 09/09/20 08402 US POSTMASTER OWD-12109 09/08/20 POSTAGE 450.00 450.00 2054832 08/26/20 08028 VALLEY CONSTRUCTION MANAGEMENT SD199005 08/04/20 CMIS (JULY 2020)2,533.00 2,533.00 2054928 09/16/20 20365 VICTORY LUTHERAN CHURCH Ref002605837 09/14/20 UB Refund Cst #0000250569 1,414.56 1,414.56 2054929 09/16/20 20370 VOGT INDUSTRIAL PARK LLC Ref002605842 09/14/20 UB Refund Cst #0000257375 1,829.37 1,829.37 2054900 09/09/20 15807 WATCHLIGHT CORPORATION 683507 08/15/20 SECURITY ALARM MONITORING 2,622.62 2,622.62 2054930 09/16/20 15807 WATCHLIGHT CORPORATION 685022 08/14/20 PUBLIC SERVICE SECURITY & ACCESS (CIP)1,462.79 1,462.79 2054833 08/26/20 15807 WATCHLIGHT CORPORATION 679779 07/15/20 SECURITY ALARM MONITORING 2,532.92 2,532.92 2054962 09/23/20 15807 WATCHLIGHT CORPORATION 687350 09/15/20 SECURITY ALARM MONITORING 2,601.92 681729 07/30/20 870-2 PS ALARM INSTALLATION 625.95 2054834 08/26/20 15726 WATER SYSTEMS CONSULTING INC 4862 07/31/20 HYDRAULIC MODELING (ENDING 7/31/20)4,100.00 4,100.00 2054963 09/23/20 15726 WATER SYSTEMS CONSULTING INC 4938 08/31/20 HYDRAULIC MODELING (ENDING 8/31/20)2,182.50 2,182.50 2054901 09/09/20 01343 WE GOT YA PEST CONTROL INC 35817 08/11/20 AS-NEEDED BEE REMOVAL 125.00 35866 08/17/20 AS-NEEDED BEE REMOVAL 125.00 2054835 08/26/20 01343 WE GOT YA PEST CONTROL INC 34916 07/28/20 AS-NEEDED BEE REMOVAL 125.00 35083 07/31/20 AS-NEEDED BEE REMOVAL 125.00 2054964 09/23/20 01343 WE GOT YA PEST CONTROL INC 35988 09/02/20 AS-NEEDED BEE REMOVAL 125.00 Page 10 of 11 Check Total CHECK REGISTER Otay Water District Date Range: 8/20/2020 - 9/23/2020 Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount 375.00 8,208.23 35937 09/02/20 AS-NEEDED BEE REMOVAL 125.00 36685 09/01/20 AS-NEEDED BEE REMOVAL 125.00 2054836 08/26/20 20003 WESTERN AUDIO VISUAL 14272 08/07/20 BOARDROOM AV UPGRADE 8,162.44 14270 08/07/20 BOARDROOM AV UPGRADE 45.79 2054865 09/02/20 20338 WILLIAM DOLL Ref002603493 08/31/20 UB Refund Cst #0000045678 37.98 37.98 2054837 08/26/20 19866 WOOD RODGERS INC 138151 07/31/20 HYDRAULIC MODELING (JULY 2020)2,740.00 2,740.00 2054965 09/23/20 19866 WOOD RODGERS INC 138974 08/31/20 HYDRAULIC MODELING (AUG 2020)2,050.00 2054966 09/23/20 08023 WORKTERRA 0097932 08/31/20 08/26/20 20141 ZOOM VIDEO COMMUNICATIONS INC 29053783 07/01/20 2,050.00 EMPLOYEE BENEFITS 787.50 787.50 VIRTUAL MEETING SERVICE 2,544.41 2,544.41 Amount Pd Total:1,667,189.33 Check Grand Total:1,667,189.33 2054838 Page 11 of 11