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HomeMy WebLinkAbout08-05-20 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 August 5, 2020 3:30 P.M. AGENDA 1. ROLL CALL 2. PLEDGE OF ALLEGIANCE 3. APPROVAL OF AGENDA 4. PRESENTATION OF THE WATERSMART LANDSCAPE CONTEST “BEST IN DIS-TRICT” AWARD TO PATRICIA WOOD (DIRECTOR THOMPSON) 5. APPROVE THE MINUTES OF THE SPECIAL BOARD MEETINGS OF APRIL 8, 2020, APRIL 15, 2020, AND JULY 9, 2020 6. 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/ 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: 2 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 8. BOARD a) DISCUSS THE 2020 BOARD MEETING CALENDAR INFORMATIONAL ITEMS 9. INFORMATIONAL UPDATE FOR THE ROSARITO DESALINATION PLANT AND THE OTAY MESA CONVEYANCE AND DISINFECTION SYSTEM PROJECTS (KENNEDY) REPORTS 10. GENERAL MANAGER’S REPORT a) UPDATE ON DISTRICT’S RESPONSE TO COVID-19 PANDEMIC 11. SAN DIEGO COUNTY WATER AUTHORITY UPDATE 12. DIRECTORS' REPORTS/REQUESTS 13. PRESIDENT’S REPORT/REQUESTS OTAY WATER DISTRICT FINANCING AUTHORITY 14. NO MATTERS TO DISCUSS 15. ADJOURNMENT 3 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 July 31, 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 July 31, 2020. /s/ Susan Cruz, District Secretary 1 MINUTES OF THE SPECIAL BOARD MEETING OF THE BOARD OF DIRECTORS OTAY WATER DISTRICT April 8, 2020 1.At the request of President Croucher, General Manager Jose Martinez called the meeting to order at 12:00 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 President Croucher, seconded by Director Smith and carried with the following vote: Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: None to approve the agenda. 5.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 isresponding to the Federal, State and Local Orders and indicated that there are no AGENDA ITEM 5 2 issues with the District’s water supply and treatment plant. He presented a Construction Status Update exhibit to the board. Chief Financial Officer Joe Beachem provided an update of various rate models for the District’s FY 2021 Budget and stated that staff will return to the board, with modifications to the budget, within the first quarter of FY 2021. Director Thompson requested that staff create a rate model for the District’s FY 2021 Budget with a zero percent increase and a ½ percent increase. Staff responded to additional comments and questions from the board. RECESS TO CLOSED SESSION 7. CLOSED SESSION The board recessed to closed session at 12:24 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 12:46 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, General Manager Jose Martinez adjourned the meeting at 12:46 p.m. ___________________________________ President ATTEST: District Secretary SC:TRK 1 MINUTES OF THE SPECIAL BOARD MEETING OF THE BOARD OF DIRECTORS OTAY WATER DISTRICT April 15, 2020 1.At the request of President Croucher, General Manager Jose Martinez called the meeting to order at 12:01 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.PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TOSPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'SJURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA No one wished to be heard. 5.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 noissues with the District’s water supply. It was noted that a Special Board/BudgetWorkshop I: Key Budget Assumptions meeting is anticipated to be held on April 29. Director Thompson requested that staff provide a report of the number of non-paid water bills, the impact it has on the District’s revenue, and the percentage of pre-COVID versus current non-paid water bills. Director Smith requested that staff provide a report of the number of waived late charges/payments, as well. In response to a question from President Croucher, the District’s Assistant Chief ofFinance Kevin Koeppen stated that a claim has been filed with Cal OES and has AGENDA ITEM 5 2 been assigned to FEMA. Staff will continue to monitor the progress of the claim and will provide an update to the board, as needed. President Croucher requested that staff provide a report on the number of water bills that have been paid. Staff responded to additional comments and questions from the board. 6. ADJOURNMENT With no further business to come before the board, President Croucher adjourned the meeting at 12:24 p.m. ___________________________________ President ATTEST: District Secretary SC:TRK 1 MINUTES OF THE SPECIAL BOARD MEETING OF THE BOARD OF DIRECTORS OTAY WATER DISTRICT July 9, 2020 1.President Croucher called the meeting to order at 3:00 p.m. 2.ROLL CALL Directors Present:Croucher, Gastelum (arrived at 3:12 p.m.), 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, District Secretary Susan Cruz and others per attached list. 3.PLEDGE OF ALLEGIANCE 4.APPROVAL OF AGENDA President Croucher indicated that prior to the board approving the agenda, he would like to briefly clarify the reason for today’s meeting. He stated that the board is responding to comments from the public and employees of the District to themessages posted by Director Gastelum on social media. President Croucher saidthat the comments were hurtful, unacceptable, and inconsistent with the values ofthe District. He stated that, as the Board President, he felt that the District should address the comments as quickly as possible as he was concerned there would be a mistaken impression that the District’s Board of Directors has a tolerance forracism. He explained that the District has received hundreds of comments throughvarious social media posts and phone calls and, because of the community’sengagement, the board wished to act immediately and respond to its constituents. A motion was made by Director Smith, seconded by Director Thompson and carriedwith the following vote: Ayes: Directors Croucher, Robak, Smith and Thompson Noes: None Abstain: None Absent: Director Gastelum to approve the agenda. AGENDA ITEM 5 2 5. DIRECTORS COMMENTS Director Thompson stated that there is history of a similar situation where the Board adopted a Resolution to censure Director Gastelum. He shared that Directors, as elected officials, represent their community and how they present themselves to constituents, vendors, employees, etc. demonstrates the organization’s values to the community. He stated that he wished to share, as a board member, his view to counter some of the impressions that the community may have of the Otay WD. He indicated that he, as a director, and the Otay WD is about fairness, treating individuals equitably, showing respect to everyone at all times, being inclusive, and doing the best job that we, as a District, can do. Director Thompson stated that Director Gastelum’s comments affected him greatly as he has African American members in his family and he understands how the comments have affected others because of his own experience. He indicated that he wished Director Gastelum to understand how his comments impacts people and that showing respect to everyone is important. Director Smith stated that the Otay WD has policies that address ethics, racism and discrimination. In 2017, the board censured Director Gastelum for a similar issue that we are addressing today. He shared that as an educator (he is a professor at San Diego State University), he feels that we need more education on racism in our society as people are afraid of or hate what they do not understand. He stated that he recently noted the approval and appointment of the first African American chancellor for the University of California system and he felt that such events will go a long way to address these issues. He stated that he feels that Otay WD and its staff is uniquely positioned to be a leader in the area of diversity and inclusion as the employees are from all backgrounds. He stated that he feels that our diverse experiences makes our District better and allows for an efficient and well-run organization. Director Robak indicated that he also recalls the 2017 situation. He stated that the District is multi-cultural as is the Country and we do not single any particular group out. He shared that it hits close to home with him, as well, because he has two African American daughters and, at 14 and 16 years old, they are acutely aware of things happening around them and we have had conversations with them about situations like this. He indicated that obviously we need to be sensitive to it and we need to recognize that as a Country we have a long way to go in terms of a level playing field. He stated it is extremely unfortunate and, as an organization, he concurs that we do not tolerate such comments, we do not support such beliefs, and certainly we want our customers and the public to know that as well. Director Gastelum indicated that he wished to hear the comments from the public and the closed session discussion before he makes his comments. President Croucher indicated that he felt that it is unfortunate that the District must address this situation. He stated that the true focus as the Board of Directors of the District should be on water policies, procedures, availability, quality and affordability for the citizens they represent. He stated he did not want anyone, including 3 employees, to think that the District has taken this situation lightly. He wanted to assure the community that the comments do not represent the District, its employees, and its values. The District’s General Counsel Dan Shinoff reviewed the State statutes that apply to this situation. He stated that if an employee engages in conduct that creates a hostile work environment because of discriminatory comments or activity, as an employer the District has an absolute right to take disciplinary action in any form or fashion that it believes is appropriate. Sometimes failure to do so can result in responsibility for the employer themselves. However, the situation is very different for elected officials. Elected officials have been selected by the members of their community to represent them. When it comes to taking action on an elected official, the board’s options are limited. One option that is available to the board is to “sunshine” the issue for the public and utilize what is termed a “censure”. It is not something that is identified in case law, but simply an obligation that the board may have, if it so chooses, to publicly state its objection to any particular behavior. The board, by law, does not have the ability to remove someone from the board, even in these circumstances. 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 Mr. Edgar Hopida of Chula Vista commended the board in April 2017 for censuring Director Gastelum for similar online behavior and removing him from his committee assignments. In January 2019, seeing improvement in Director Gastelum’s behavior, the board assigned Director Gastelum to a board committee. Mr. Hopida stated that he had hoped that after the consequence and derogatory media attention Director Gastelum received in 2017, that it would have changed his divisive behavior on social media, but it has not. He indicated that elected officials should not promote intolerance and racism and should, instead, be a source of unity in a diverse community. He asked the Otay WD board to hold Director Gastelum accountable for his unacceptable behavior on social media. Mr. Art Pacheco of Chula Vista stated the Otay WD board came to his attention through comments Director Gastelum posted on social media. He indicated he felt a water board, by its nature, should be unifying as water, by its nature, does not see color and its pH is neutral. He stated the media posts are very derogatory and distracting and it saddened him to hear that this is not the first time that this has occurred and he hoped that the board will move forward with censoring Director Gastelum. He stated that Director Gastelum’s thoughts are not representative of this community and that his attention, as a water board member, should be on water quality and fairness amongst the citizens of the community. 7. CLOSED SESSION The board convened to closed session at 3:26 p.m. to discuss the following matter: 4 a) CONFERENCE WITH LEGAL COUNSEL – POTENTIAL LITIGATION [GOVERNMENT CODE §54956.9] EMPLOYMENT MATTERS The board reconvened from closed session at 3:37 p.m. and General Counsel Dan Shinoff stated that the board took no reportable actions in closed session. 8. ADOPT RESOLUTION NO. 4385 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT TO CENSURE DIRECTOR HECTOR GASTELUM FOR OFFICIAL MISCONDUCT (Presented by Directors Croucher and Robak) General Counsel Shinoff read proposed Resolution No. 4385, in its entirety, into the record (copy of Resolution No. 4385 is attached). A motion was made by Director Robak, seconded by Director Smith to adopt Resolution No. 4385. President Croucher asked Director Gastelum if he wished to make any comments. Director Gastelum stated that he wished to apologize for the tone, frustration, and aggression of his social media post. He indicated that he has heard that aggression brings aggression and that his comments do not reflect the example of Reverend Martin Luther King, Jr. He explained that while he was growing up in Mexico, he always looked up to America and when he first came to study at Southwestern College and San Diego State University, he always felt that there was tremendous hostility towards white Christian men and he never understood it. During his studies at Southwestern College, he took an African American history class which he liked to call American history. He stated the injustices that his African American brothers and sisters experienced opened his eyes and broke his heart. He stated that his frustration with the Black Lives Matters protest is that the protests have caused the death of 26 people (22 by gunshot). For him this is so frustrating and is the reason he posted the comment. He stated he removed his comments within 45 minutes after he posted it because he realized it did not explain properly what he wanted to say. He changed his post to, “The left always wants to attack America because it was founded by white Christian men who believe that all men are created equal, because they mentioned ‘God’ four (4) times in the Declaration of Independence, and because they love capitalism, limited government, and God given rights, etc. HappyIndependenceDay”. He stated in the world we live in today, a screen shot can be taken and the post lasts forever and for the rest of his life he will atone for that mistake. He stated that he will make it his life’s commitment that his actions will speak louder than the mistaken “screenshot”. He shared that because of his understanding and love for his black brothers and sisters, he has been involved with tremendous organizations like Content of Character Series which affirms the value and dignity of black America. He stated when he ran for mayor for the city of Chula Vista, he was very committed to eradicate Planned Parenthood in Chula Vista because of the racists 5 and eugenics beginnings of the organization. He indicated the issue is non- negotiable for him and is the reason he is prolife and volunteers for 40 Days for Life. Director Gastelum stated that he remembers former President Ronald Reagan indicating that immigrants keep, and will always keep, America fresh. The Otay WD is blessed by this diversity and is the most efficient water agency in San Diego County. He noted the fact that the District is the third lowest cost water agency, though it buys/imports all its water supplies, and he feels this is due to the diversity of its employees. Its employees come from different backgrounds and they find solutions to challenges in different ways. He indicated that he apologizes to the employees of the District and to those he has offended and stated he wished he had not posted those comments. He indicated that it is not conduct he is proud of and is the reason he quickly took it down and changed his comments to how he would have liked it to read initially. He stated that he made a mistake and it is something that he is going to wear and take responsibility for and he will make it his life’s mission to be judged by his actions. He stated that, again, he would like to apologize. Director Thompson indicated that he only heard the last half of Director Gastelum’s comments as he was having technical difficulties with his tablet. He stated that he has had his issues with Director Gastelum’s previous public comments and that he always tries to seek what is behind people’s actions and many times it is difficult to understand. He stated that he has found Director Gastelum’s humanity in various ways during the course of time. He indicated that he does feel that the proposed resolution is appropriate at this time and he supports removing Director Gastelum from his committee assignments. He stated that the comments made by Director Gastelum are not appropriate from anyone who is representing an organization in a leadership role as they are in a position of influence. He stated that he hopes that this becomes another learning moment in Director Gastlum’s life and indicated that he appreciates President Croucher bringing this issue forward and he would like to leave it to the president to decide if Director Gastelum should be removed from his committee assignments. Director Thompson added that he did not know how long Director Gastelum will be on the board as we have an election coming in the fall and he feels that bad behavior has consequences and good behavior has consequences, but he never says never. Director Smith indicated that he would like to restate the three points he made at the beginning of the meeting. He stated that a similar issue occurred in 2017 and Director Gastelum, at that time, did not acknowledge his mistake or apologize. He noted that he recognizes that Director Gastelum acknowledged and apologized today and that he has shown some growth. He stated that he still supports the motion for censorship because he feels that Director Gastelum’s actions were serious enough to warrant the consequence. He stated with regard to education, he was surprised and saddened that Director Gastelum attended a semester long class in African American Studies and still made these comments. He noted it points to the fact that we need more education over a longer period of time to help us understand what others are going through. He stated that he feels this is an opportunity for this organization to grow, show that, with diverse backgrounds, we 6 can be a more efficient organization, and he would like to think that they would stick together at this time. President Croucher noted in proposed Resolution No. 4385 in the middle of page 2, it indicates, “Whereas, in July 2020, Director Hector Gastlum…,” it should have stated “June/July 2020”. He asked Director Robak and Director Smith if they accept this change in their motion and second respectively. Both Directors Robak and Smith acknowledged and accepted the change. President Croucher indicated that a public speaker who spoke earlier in the meeting wished to make additional comments and he will be allowing the speaker to make additional comments at the president’s prerogative. Mr. Art Pecheco stated he wished to respond to Director Gastelum’s comments. He indicated that the issue we have as a community is his use of the water board as a political platform. As a County, the issue is we don’t have these political conversations. He stated that he is open to an intellectual conversation with Director Gastelum about learning, history and the conquests that have occurred. He would also like to include some of his friends so Director Gastelum can hear their point of view. He stated that, as a community, we should have these conversations and Director Gastelum needs to understand why a lot of his comments are hurtful. Director Gastelum, as an elected official who is supposed to represent the community he serves, should also understand he has a greater impact because of his position. President Croucher encouraged Director Gastelum to meet with Mssrs. Pecheco and Hopida. He shared that Mr. Pecheco is a resident of his division and it would be positive for him to meet his constituents. He additionally stated that he does intend to remove Director Gastelum from his committee assignments and he would be speaking with the members of the board about taking additional assignments. President Croucher further indicated that the Otay WD cannot allow a perception to exist without addressing it. He stated that the District received over a hundred comments through phone calls, emails, social media, etc., and he did not want the issue growing in the community. He indicated that he felt that it was important to address the issue immediately and to share with the community the Otay WD’s values and to represent to the employees what is acceptable and not acceptable. He stated to Director Gastelum that he appreciated his comments. The board voted on the adoption of Resolution No. 4385 as motioned earlier in the meeting by Director Robak and seconded by Director Smith. The motion carried with the following vote: Ayes: Directors Croucher, Robak, Smith and Thompson Noes: None Abstain: Director Gastelum Absent: None President Croucher indicated that he appreciated the input from the public and thanked the employees for allowing the board to appropriately represent the Otay WD. He stated that he looks forward to a future where the District can continue to 7 focus on water availability, quality, and affordability. He noted the fact that the District remains as the third lowest water rate within the County which demonstrates where the District’s focus has been. He stated that he hoped that Director Gastelum and Mssrs. Hopida and Pacheco will have an opportunity to meet and have a discussion on this issue which will provide for growth and understanding. Director Gastelum indicated he was open to doing so and would look forward to receiving their contact information. 9. ADJOURNMENT With no further business to come before the board, President Croucher adjourned the meeting at 4:11 p.m. ___________________________________ President ATTEST: District Secretary 8 RESOLUTION NO. 4385 RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT TO CENSURE DIRECTOR HECTOR GASTELUM FOR OFFICIAL MISCONDUCT WHEREAS, the Otay Water District (“District”) recognizes that it serves constituents of diverse backgrounds; and WHEREAS, acceptance of diversity in terms of race, ethnicity, religion, culture, gender, sexual orientation, and disability is critical to responsible leadership and citizenship; and WHEREAS, the District disapproves of and will not tolerate discrimination, bias, or prejudice on the basis of race, color, religion, ethnicity, national origin, place of birth, ancestry, native language or accent, citizenship, gender, sex, gender identity, sexual orientation, age, familial status, physical or mental disability, or other legally protected status recognized by federal, state or local laws; and WHEREAS, the District cherishes the freedom of speech as a fundamental right but recognizes that this freedom is not absolute, and is subject to both legal restrictions and standards of civility; and WHEREAS, the Otay Water District’s elected officials are required to be independent, impartial and responsible to the people, and to conduct themselves in a manner above reproach, and; 9 WHEREAS, the Otay Water District’s elected officials are expected to set an example which always demonstrates respect, confidence, and trust between themselves and the community they serve; and WHEREAS, it is the Otay Water District’s expectation that its elected officials will consistently behave in an ethical manner, show deference to those who disagree, and encourage public respect, confidence, and trust to all segments of the community they endeavor to serve, and; WHEREAS, the Otay Water District endeavors to foster public respect, confidence, and trust between its elected officials and the constituents whom it represents pursuant to Code of Ordinances, Board of Directors Policy, No. 40, Ethics, and; WHEREAS, on March 1, 2017, the Board of Directors of the Otay Water District adopted Resolution No. 4329, in response to a series of comments that Director Hector Gastelum posted on social media in or about February 2017, which comments were considered to be derogatory and offensive in nature, and which violated the Otay Water District’s ethical values of mutual respect and inclusion, and; WHEREAS, Resolution No. 4329 condemned discrimination and committed the Board of Directors of the Otay Water District to refrain from making public oral or written statements or comments in their capacities as District representatives that discriminate against persons based on any legally protected status recognized by federal, state, or local laws, and; 10 WHEREAS, on April 17, 2017, the Board of Directors of the Otay Water District adopted Resolution 4333, whereby the Board censured Director Gastelum for his reprehensible and intolerable comments to the media, on social media, and his further incendiary comments during the March 1, 2017 Board meeting and resolved further to monitor the future conduct of Director Gastelum and consider further future actions should such future actions be deemed warranted, and; WHEREAS, in June and July 2020, Director Hector Gastelum posted a series of comments on social media, which comments are considered to be derogatory and offensive in nature, and which violated the Otay Water District’s intolerance for discrimination and its ethical values of mutual respect and inclusion, and; WHEREAS, by this Resolution the Board of Directors finds it necessary and prudent to publicly acknowledge that Director Gastelum’s public behavior is reprehensible and intolerable, and; WHEREAS, by this Resolution the Board of Directors desires again to reinforce its commitment to mutual respect and inclusivity of all constituents of its diverse community. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Otay Water District that the above stated recitals are incorporated herein by reference; IT IS RESOLVED FURTHER that Director Gastelum’s comments on social media have demonstrated that he is not impartial and responsible to the people he represents and he has not conducted himself in a manner above reproach; and 11 IT IS RESOLVED FURTHER that the Board of Directors hereby reaffirms its commitment to insuring that all constituents of the Otay Water District be treated with respect and integrity, and; IT IS RESOLVED FURTHER that Director Gastelum’s recent comments on social media do not set an example or the tone for demonstrating respect, confidence, and trust between the District, and the community it serves, and; IT IS RESOLVED FURTHER that Director Gastelum’s recent comments on social media have demonstrated that he has not conducted himself in a professional manner, or shown deference to those who disagree with him, and he has failed to encourage public respect, confidence, and trust, and; IT IS RESOLVED FURTHER that Director Gastelum’s recent comments on social media were reprehensible and intolerable, and they violated the Otay Water District’s ethical values of mutual respect and inclusion, and; IT IS RESOLVED FURTHER that Director Gastelum’s recent comments on social media violate Board of Directors Policy No. 40, Ethics Policy, and they constitute official misconduct, and; IT IS RESOLVED FURTHER that Director Gastelum’s recent comments on social media constitute cause for censure, and; IT IS RESOLVED FURTHER that Director Gastelum is hereby censured for his reprehensible and intolerable comments on social media, and; IT IS RESOLVED FURTHER that the Board of Directors will continue to monitor the future conduct of Director Gastelum and 12 will consider further future actions should such future actions be deemed warranted, and; IT IS RESOLVED FURTHER that the Board of Directors, pursuant to § 5.03 of the Code of Ordinances, requests that the Board President under the powers granted to him, conduct a review of the current Committee assignments for Director Gastelum and determine whether a temporary or permanent removal of some or all said committee assignments might be appropriate at the present time. FINALLY BE IT RESOLVED that this resolution shall be in full force and effect immediately after its passage and approval. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting held this 9th day of July, 2020. Ayes: Noes: Abstain: Absent: President ATTEST: District Secretary STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: August 5, 2020 SUBMITTED BY: Stephen Beppler Senior Civil Engineer PROJECT: Various DIV. NO. All APPROVED BY: Bob Kennedy, Engineering Manager Rod Posada, Chief, Engineering Jose Martinez, General Manager SUBJECT: Award of Two (2) Professional Services Contracts for As-Needed Traffic Engineering for Fiscal Years 2021 through 2023 GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) award two (2) professional service contracts for As-Needed Traffic Engineering and to authorize the General Manager to execute two (2) agreements with Rick Engineering Company and STC Traffic, Inc., 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. COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to enter into two (2) professional services contracts for As-Needed Traffic Engineering with Rick Engineering and STC Traffic, each in an amount not-to-exceed $175,000 for Fiscal Years 2021 through 2023 (ending June 30, 2023). The total amount of tasks under the two contracts will not exceed $175,000. AGENDA ITEM 7a 2 ANALYSIS: The District will require the professional services of two (2) traffic engineering consultants on an as-needed basis in support of Capital Improvement Program (CIP) projects for Fiscal Years 2021 through 2023. The services could include the preparation and process of traffic control plans, traffic signal plans, traffic signal modification plans, and any reports needed in support of District projects. It is more efficient and cost effective to issue an as- needed contract for traffic engineering services which will provide the District with the ability to obtain consulting services in a timely and efficient manner. This concept has also been used in the past for other disciplines such as engineering design, construction management, electrical, and environmental services. The District staff will identify tasks for specific projects and request cost proposals from the two (2) consultants during the contract period. Each consultant will prepare a detailed scope of work, schedule, and fee for each task order, with the District evaluating the proposals based upon qualifications and cost. The District will enter into negotiations with the consultants, selecting the proposal that has the best value for the District. Upon written task order authorization from the District, the selected consultant shall then proceed with the project as described in the scope of work. The CIP projects that are estimated to require traffic engineering services for the duration of the contract, at this time, are listed below: CIP DESCRIPTION ESTIMATED COST P2610 Valve Replacement Program – Phase 1 $20,000 P2612 PL – 12-inch, 711 Zone, Paso de Luz/Telegraph Canyon Rd $15,000 P2646 North District Area Cathodic Protection Improvements $25,000 P2647 Central District Area Cathodic Protection Improvements $30,000 P2655 La Presa Pipeline Improvements $15,000 R2146 Recycled Pipeline Cathodic Protection Improvements $30,000 S2049 Calavo Basin Sewer Rehabilitation – Phase 2 $25,000 TOTAL: $165,000 3 The traffic engineering services scopes for the above projects are estimated from preliminary information and past projects. Staff believes that a $175,000 cap on each of the As-Needed Traffic Engineering Services contracts is adequate, while still providing a buffer for unforeseen tasks. Fees for professional services will be charged to the CIP projects or to the Fiscal Year Operations budget. The As-Needed Traffic Engineering Services contracts do not commit the District to any expenditure until a task order is approved to perform the work. The District does not guarantee work to the consultants, nor does the District guarantee to the consultants that it will expend all the funds authorized by the contract on professional services. The District solicited traffic engineering services by placing an advertisement on the Otay Water District’s website and using BidSync, the District’s online bid solicitation website, on March 2, 2020. The advertisement was also placed in the Daily Transcript. Eight (8) firms submitted a Letter of Interest and a Statement of Qualifications. The Request for Proposal (RFP) for Traffic Engineering Services was sent to all eight (8) firms resulting in seven (7) proposals received on June 11, 2020. They are as follows: • Interwest Consulting Group, Huntington Beach, CA • Kimley Horn & Associates, Inc., San Diego, CA • KOA Corporation, San Diego, CA • LIN Consulting, Inc., San Diego, CA • Linscott, Law & Greenspan, Engineers, San Diego, CA • Rick Engineering Company, San Diego, CA • STC Traffic, Inc., Carlsbad, CA In accordance with the District’s Policy 21, staff evaluated and scored all written proposals. Rick Engineering and STC Traffic received the highest scores based on their experience, understanding of the scope of work, proposed method to accomplish the work, and their composite weighted hourly rate [this rate is obtained by adjusting their rates for the six requested positions proportionally by the percentage indicated for Principal Engineer (5%), Senior Engineer/Project Manager (35%), Project Engineer II (20%), Project Engineer I (20%), Technician/Drafter (15%) and Office Support (5%)]. Rick Engineering and STC Traffic were the most qualified consultants with the best overall proposals. Rick Engineering currently holds the District’s as-needed traffic engineering contract and has performed well. The District has not previously worked with STC Traffic on any projects, but they provide similar services to other 4 agencies in California and have experience with all of the jurisdictions that issue permits on District projects. Both consultants are readily available to provide the services required. A summary of the complete evaluation is shown in Attachment B. Rick Engineering and STC Traffic submitted the Company Background Questionnaire, as required by the RFP, and staff did not find any significant issues. In addition, staff checked their references and performed an internet search on the company. Staff found the references to be excellent and did not find any outstanding issues with the internet search. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The funds for these contracts will be expended from a variety of projects, as previously noted above, and from the FY 2021 through FY 2023 operating budgets. These contracts are for as-needed professional services based on the District’s need and schedule, and expenditures will not be made until a task order is approved by the District for the consultant’s services on a specific CIP or operating project. The total amount of tasks under the two contracts will not exceed $175,000. Based on a review of the financial budget, the Project Manager anticipates that the budgets will be sufficient to support the professional as-needed consulting services required for the CIP and operating projects noted above. The Finance Department has determined that the funds to cover these contracts will be available as budgeted for these projects. STRATEGIC GOAL: This project supports the District’s Mission statement, “To provide exceptional water and wastewater service to its customers, and to manage District resources in a transparent and fiscally responsible manner” and the General Manager’s Vision, "To be a model water agency by providing stellar service, achieving measurable results, and continuously improving operational practices." GRANTS/LOANS: Not applicable. LEGAL IMPACT: None. 5 SB/BK:jf P:\WORKING\As Needed Services\Traffic Engineer\FY21-FY23\Staff Report\BD_08-05-2020_Staff Report_Award of As-Needed Traffic Engineering Services (SB-BK).docx Attachments: Attachment A – Committee Action Attachment B – Summary of Proposal Rankings ATTACHMENT A SUBJECT/PROJECT: Various Award of Two (2) Professional Services Contracts for As- Needed Traffic Engineering Services for Fiscal Years 2021 through 2023 COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) and staff reviewed this item at a meeting held on July 20, 2020 and the following comments were made: • Staff recommended that the Board award two (2) professional service contracts for As-Needed Traffic Engineering and to authorize the General Manager to execute two (2) agreements with Rick Engineering Company and STC Traffic, Inc., 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. • The Committee stated that staff provided an informational item to the Committee on January 21, 2020 regarding the District’s Summary of Proposal Rankings methodology. It was requested that staff report back to the Committee at a future meeting for further discussion. Following the discussion, the Committee supported staffs’ recommendation and presentation of this item to the full board on the consent calendar. ATTACHMENT B – Summary of Proposal Rankings SUBJECT/PROJECT: Various Award of Two (2) Professional Services Contracts for As- Needed Traffic Engineering Services for Fiscal Years 2021 through 2023 SUMMARY OF PROPOSAL RANKINGS - As-Needed Traffic Engineering FY 2021-23 WRITTEN REFERENCES Qualifications of Team Responsiveness and Project Understanding Technical and Management Approach INDIVIDUAL SUBTOTAL - WRITTEN AVERAGE SUBTOTAL - WRITTEN Proposed Fee* Consultant's Commitment to DBE TOTAL - WRITTEN MAXIMUM POINTS 30 25 30 85 85 15 Y/N 100 Poor/Good/ Excellent Interwest Chad Thompson 23 19 23 65 63 11 Y 74 Kent Payne 21 18 24 63 Juan Tamayo 22 19 23 64 Steve Beppler 21 20 24 65 Kevin Cameron 22 16 22 60 Kimley Horn Chad Thompson 26 23 25 74 76 1 Y 77 Kent Payne 26 24 27 77 Juan Tamayo 27 22 24 73 Steve Beppler 28 22 27 77 Kevin Cameron 28 23 28 79 KOA Corp Chad Thompson 23 19 22 64 66 6 Y 72 Kent Payne 24 20 25 69 Juan Tamayo 24 19 21 64 Steve Beppler 21 19 23 63 Kevin Cameron 24 21 24 69 Lin Consulting Chad Thompson 23 20 22 65 69 1 Y 70 Kent Payne 23 23 25 71 Juan Tamayo 22 21 22 65 Steve Beppler 24 22 25 71 Kevin Cameron 25 21 25 71 LL&G Eng Chad Thompson 25 21 24 70 70 3 Y 73 Kent Payne 24 23 25 72 Juan Tamayo 24 21 25 70 Steve Beppler 23 21 25 69 Kevin Cameron 25 21 24 70 Rick Eng Chad Thompson 26 24 25 75 76 15 Y 91 E Kent Payne 27 24 27 78 Juan Tamayo 26 24 25 75 Steve Beppler 27 22 26 75 Kevin Cameron 27 23 27 77 STC Traffic Chad Thompson 25 23 24 72 76 10 Y 86 E Kent Payne 26 24 27 77 Juan Tamayo 27 23 25 75 Steve Beppler 28 23 27 78 Kevin Cameron 27 23 28 78 RATES SCORING CHART Firm Interwest Kimley Horn KOA Corp Lin Consulting LL&G Eng Rick Eng STC Traffic *Note: Review Panel does not see or consider proposed fee when scoring other Fee $140 $151 $145 $151 $149 $136 $141 categories. The proposed fee is scored by Score 11 1 6 1 3 15 10 Engineering Staff not on the Review Panel. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: August 5, 2020 SUBMITTED BY: Jeff Marchioro Senior Civil Engineer PROJECT: P2648- 001103 DIV. NO. 2 APPROVED BY: Bob Kennedy, Engineering Manager Rod Posada, Chief, Engineering Jose Martinez, General Manager SUBJECT: Award of a Construction Contract to Kay Construction Company for the Otay Mesa Pipeline Cathodic Protection Improvements Project GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) award a construction contract to Kay Construction Company (Kay Construction) and to authorize the General Manager to execute a construction contract with Kay Construction for the Otay Mesa Pipeline Cathodic Protection Improvements Project in an amount not- to-exceed $379,115 (see Exhibit A for Project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to enter into a construction contract with Kay Construction for the Otay Mesa Pipeline Cathodic Protection Improvements Project in an amount not- to-exceed $379,115. AGENDA ITEM 7b 2 ANALYSIS: The District’s Cathodic Protection (CP) Program (Program) was implemented over sixteen (16) years ago to provide the long-term benefit of preserving the life expectancy of metallic pipeline and reservoir facilities and reducing the risk of costly failures. A portion of the Program includes annual data collection from roughly 1,000 pipeline cathodic test stations. The effort results in a list of recommendations for repairs to existing cathodic protection systems such as anode replacement, cathodic test station repairs, retrofit/ repair of isolation kits, and repair of existing impressed current systems and anode beds. The first phase of Pipeline CP Improvements was completed on the District’s 1980 era RWCWRF 14-inch force main in 2017. A portion of the second phase was bid and awarded with the District’s 870-2 Pump Station project for work in vaults immediately adjacent to the Roll Reservoir. Construction for the remainder of the second phase was completed on five (5) pipelines in environmentally sensitive areas in 2019. The work associated with this construction bid is for the replacement and repairs of existing cathodic protection systems on five (5) pipelines generally located in the Otay Mesa Area. This includes the District's existing 1995 era piping near the Donovan Prison, 1993 era pipeline crossing the Otay River near the intersection of Main Street and Heritage Road, 2002 era pipelines at the interconnection with Mexico, 1999 era pipeline in Otay Mesa Road, and 1985 era pipeline in Airway Road. Each pipe system includes several sites which require two (2) agency permits from City of Chula Vista and City of San Diego as well as coordination with Donovan Prison and Border Patrol. Overall, the work includes approximately fourteen (14) phases of traffic control and approximately twenty-one (21) sites total. Staff prepared the contract documents in-house together with assistance from the District’s As-Needed Corrosion and Traffic Engineer Consultants. On May 21, 2020, the Project was publicly advertised for bid using BidSync, an online bid solicitation website. The Project was also advertised in the Daily Transcript. BidSync provided electronic distribution of the Bid Documents, including specifications, plans, and addendum. A Pre-Bid Meeting was held on May 28, 2020 via Zoom video online conference, which was attended by six (6) contractors. Two addenda were sent out to all bidders and plan houses to address questions and clarifications to the contract documents during the bidding period. 3 Staff reached out to twenty-nine (29) contractors directly via email and telephone to encourage them to submit a bid. Bids were publicly opened on June 11, 2020, via Zoom video online conference with the following results: CONTRACTOR TOTAL BID AMOUNT Corrected Bid Amount 1 Kay Construction Co. (Santee, CA) $379,115.00 2 Corrpro Companies, Inc. (San Diego, CA) $418,521.12 unknown 3 Hemet Manufacturing Company, Inc. DBA Genesis Construction (Hemet, CA) $503,444.00 4 Exaro Technologies Corp. (Burlingame, CA) $618,397.00 $624,785.00 5 Farwest Corrosion Control Co. (Downey, CA) $634,380.00 6 Kantex Industries (Olathe, KS) $2,116,436.02 The Engineer’s Estimate is $350,000. Corrpro Companies, Inc. bid appeared second low; however, Corrpro omitted a unit price for an allowance item. Exaro Technologies Corp. total bid amount was corrected to account for a mathematical error. A review of the bids was performed by District staff for conformance with the contract requirements and determined that Kay Construction was the lowest responsive and responsible bidder. Kay Construction holds a Class A, General Engineering, Contractor’s License in the State of California, which meets the contract document’s requirements, and is valid through April 30, 2021. The reference checks indicated a very good to excellent performance record on similar projects. An internet background search of the company was performed and revealed no outstanding issues with this company. Staff verified that the bid bond provided by Kay Construction is valid. Staff will also verify that Kay Construction’s Performance Bond and Labor and Materials Bond are valid prior to execution of the contract. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The total budget for CIP P2648, as approved in the FY 2021 budget, is $700,000. Total expenditures, plus outstanding commitments and forecast including this contract, are $658,861. See Attachment B for budget detail. 4 Based on a review of the financial budgets, the Project Manager anticipates that the budget for CIP P2648 is sufficient to support the Project. The Finance Department has determined that, under the current rate model, 100% of the funding is available from the Replacement Fund. GRANTS/LOANS: Engineering staff researched and explored grants and loans and found none available for this Project. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide exceptional water and wastewater service to its customers, and to manage District resources in a transparent and fiscally responsible manner” and the General Manager’s Vision, "To be a model water agency by providing stellar service, achieving measurable results, and continuously improving operational practices." LEGAL IMPACT: None. JM/BK:jf Https://otaywater365.sharepoint.com/sites/engcip/Shared Documents/P2648 Otay Mesa Area CP Improvements/Staff Reports/BD 08-05-20 Staff Report Otay Mesa CP Imp.docx Attachments: Attachment A – Committee Action Attachment B – Budget Detail Exhibit A – Location Map ATTACHMENT A SUBJECT/PROJECT: P2648-001103 Award of a Construction Contract to Kay Construction Company for the Otay Mesa Pipeline Cathodic Protection Improvements Project COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on July 20, 2020 and the following comments were made: • Staff recommended that the Board award a construction contract to Kay Construction Company (Kay Construction) for the Otay Mesa Pipeline Cathodic Protection Improvements Project in an amount not-to-exceed $379,115. • Staff stated that the District’s Cathodic Protection Program includes a list of recommended repairs to existing cathodic protection systems such as anode replacement, cathodic test station repairs, and other improvements. It was noted that Phase I of the program was completed in 2017 and Phase II was completed in 2019. Page 2 of the staff report provides further details about the program’s background. • It was noted that bids were publicly opened on June 11, 2020 via Zoom video online conference. The bid analysis concluded that Kay Construction submitted the lowest bid which totaled $379,115. Page 3 of the staff report provides further details of the selection process. • Staff shared that Kay Construction recently completed the Hidden Mountain Sewage Pump Station Wet Well Renovation project in June 2020 and performed well. • In response to a question from the Committee, staff stated that this is the first time the District has bid this project. Following the discussion, the Committee supported staffs’ recommendation and presentation of this item to the full board on the consent calendar. ATTACHMENT B – Budget Detail SUBJECT/PROJECT: P2648-001103 Award of a Construction Contract to Kay Construction Company for the Otay Mesa Pipeline Cathodic Protection Improvements Project 7/6/2020 Budget 700,000 Planning Consultant Contracts 8,728 8,728 - 8,728 HELIX ENVIRONMENTAL Parking and Tolls 8 8 - 8 PETTY CASH CUSTODIAN Regulatory Agency Fees 50 50 - 50 COUNTY OF SAN DIEGO Standard Salaries 24,407 24,407 - 24,407 Total Planning 33,193 33,193 - 33,193 Design 001102 Consultant Contracts 25,070 25,070 - 25,070 RICK ENGINEERING COMPANY 15,900 15,900 - 15,900 CORRPRO COMPANIES INC OTHER AGENCY FEES 14,402 14,402 - 14,402 CITY OF SAN DIEGO Regulatory Agency Fees 48 48 - 48 PETTY CASH CUSTODIAN Standard Salaries 92,090 92,090 - 92,090 1,500 - 1,500 1,500 Reprographics Total Design 149,009 147,509 1,500 149,009 Construction INFRASTRUCTURE EQUIPMENT & MATERIALS 512 512 - 512 FERGUSON ENTERPRISES INC #1083 379,115 - 379,115 379,115 Kay Construction Co. 15,165 - 15,165 15,165 CM @4% 18,956 - 18,956 18,956 Inspection @5% 18,956 - 18,956 18,956 Staff Time @5% 25,000 - 25,000 25,000 Agency Fees 18,956 - 18,956 18,956 Contingency @5% Total Construction 476,659 512 476,147 476,659 Grand Total 658,861 181,214 477,647 658,861 Vendor/Comments Otay Water District p2648-Otay Mesa Cathodic Protection Impr Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost OTAY WATER DISTRICT OTAY MESA PIPELINE CATHODIC PROTECTION IMPROVEMENTS LOCATION MAP EXHIBIT A CIP P2648F P:\WORKING\CIP P2648 Otay Mesa Area CP Improvements\Graphics\Exhibits-Figures\Staff Report -Exhibit A.mxd ÃÅ125 ÃÅ905 ÃÅ905 ÃÅ125 ÃÅ905 LOWEROTAY RESERVOIR OTAY MESA ROADPIPELINE F O TAY O TAY WA T ERWATERDISTRICTDISTRICT C I T Y OF C I T Y OF S A N D I EGOSAN D I EGO DONOVANPIPELINE OTAY RIVER CROSSINGPIPELINE 0 4,4002,200 Feet VICINITY MAP NTSDIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ÃÅ54 !\!\ !\!\ Text !\ TextPROJECTSITES TextPROJECT SITESÃÅ125 ÃÅ94 ÃÅ905 §¨¦805 F AIRWAY ROADPIPELINE U.S./MEXICO FCFPIPELINE STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: August 5, 2020 SUBMITTED BY: Jeff Marchioro Senior Civil Engineer PROJECT: R2156- 001103 DIV. NO. 3 APPROVED BY: Bob Kennedy, Engineering Manager Rod Posada, Chief, Engineering Jose Martinez, General Manager SUBJECT: Award of a Construction Contract to Burtech Pipeline, Inc. for the 14-Inch Force Main Air-Vac Replacements Project GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) award a construction contract to Burtech Pipeline, Inc. (Burtech) and to authorize the General Manager to execute a construction contract with Burtech for the 14-Inch Force Main Air-Vac Replacements Project in an amount not-to-exceed $212,100 (see Exhibit A for Project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to enter into a construction contract with Burtech for the 14-Inch Force Main Air-Vac Replacements Project in an amount not-to-exceed $212,100. AGENDA ITEM 7c 2 ANALYSIS: The District owns and operates the Ralph W. Chapman Water Reclamation Facility (RWCWRF) 14-inch cement mortar lined; coal-tar epoxy coated steel force main. The 1980 era, 3.1-mile long steel force main, which has pressures up to 400 psi, conveys reclaimed water from the RWCWRF to a hydraulic structure (Junction Box) north of the former Salt Creek Golf Course. At the Junction Box, the force main transitions to a gravity main and the pipe material transitions from steel to asbestos-cement pipe. The force main serves as a conveyance pipeline and as a chlorine contact chamber for disinfection prior to reaching the 944-1R and 927-1R recycled water reservoirs located north of the former Salt Creek Golf Course. The entire force main traverses an environmentally sensitive area designated as an environmental preserve. The preserve contains an active river (Sweetwater River), which drains to the Sweetwater Reservoir through very rough/steep terrain. Several force main improvement projects were completed over the last twelve years. All air-vacuum valve assemblies and inline section valves were replaced in 2008. A two-year condition assessment program was completed using PICA’s See Snake tool in 2016. All blow offs were replaced, a new cathodic protection system installed, a buried high-pressure isolation valve was replaced in the RWCWRF yard, and a new redundant flow meter vault was installed in 2016 and 2017. Several spot repairs were completed in 2019 corresponding to PICA’s prioritized condition assessment results. Air-vacuum valve assemblies previously replaced in 2008 are due for replacement since all nineteen (19) air-vacuum valve assemblies between the RWCWRF and the Junction Box are showing signs of corrosion. The air-vacuum valve assembly closest to the RWCWRF failed on February 10, 2020 due to corrosion and was repaired. Staff prepared the contract documents in-house under CIP R2116 (14- Inch, 927 Zone, Force Main Improvements), which was closed at the end of FY 2020 and superseded by the new CIP R2156 for FY 2021. Air- vacuum valve assembly materials were selected considering force main high operating pressure and chlorine concentrations. District staff pre-purchased high-pressure combination air-vacuum valves considering valve lead time and the District’s desire to have the contractor complete their work within the October 1, 2020 through January 15, 2021 environmental work window. 3 On May 28, 2020, the Project was publicly advertised for bid using BidSync, an online bid solicitation website. The Project was also advertised in the Daily Transcript. BidSync provided electronic distribution of the Bid Documents, including specifications, plans, and addendum. A Pre-Bid Meeting was held on June 4, 2020 via Zoom video online conference, which was attended by five (5) contractors. Three (3) addenda were sent out to all bidders and plan houses to address questions and clarifications to the contract documents during the bidding period. Staff reached out to twenty-nine (29) contractors directly via email and telephone to encourage them to submit a bid. Bids were publicly opened on June 23, 2020, via Zoom video online conference with the following results: CONTRACTOR TOTAL BID AMOUNT Corrected Bid Amount 1 Burtech Pipeline, Inc (Encinitas, CA) $212,100.00 2 Jennette Company, Inc (San Diego, CA) $245,580.00 3 Tharsos, Inc. (San Diego, CA) $288,000.00 $287,999.00 4 M-Rae Engineering (Descanso, CA) $294,900.00 5 Provet Concrete, Inc (Santee, CA) $295,497.00 6 Charles King Company (Signal Hill, CA) $363,300.00 7 Kay Construction Co. (Santee, CA) $430,150.00 8 Piperin Corp. (Escondido, CA) $440,000.00 The Engineer’s Estimate is $250,000. A review of the bids was performed by District staff for conformance with the contract requirements and determined that Burtech was the lowest responsive and responsible bidder. Burtech holds a Class A, General Engineering, Contractor’s License in the State of California, which meets the contract document’s requirements, and is valid through January 31, 2022. The reference checks indicated an acceptable performance record on similar projects. Burtech noted on their bid submittal they have been inspected by OSHA in the last three years, but the inspections were not in response to any complaints. They were cited, as a result of these inspections. Burtech stated they have appealed all alleged citations and expect there will be no adverse findings by the CAL-OSHA Appeals Court. Staff verified that the bid bond provided by Burtech is valid. Staff will also verify that Burtech’s Performance Bond and Labor and Materials Bond are valid prior to execution of the contract. 4 FISCAL IMPACT: Joe Beachem, Chief Financial Officer The total budget for CIP R2156, as approved in the FY 2021 budget, is $1,300,000. Total outstanding commitments and forecast, including this contract, are $1,279,529. See Attachment B for budget detail. Based on a review of the financial budgets, the Project Manager anticipates that the budget for CIP R2156 is sufficient to support the Project. The Finance Department has determined that, under the current rate model, 100% of the funding is available from the Replacement Fund. GRANTS/LOANS: Engineering staff researched and explored grants and loans and found none available for this Project. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide exceptional water and wastewater service to its customers, and to manage District resources in a transparent and fiscally responsible manner” and the General Manager’s Vision, "To be a model water agency by providing stellar service, achieving measurable results, and continuously improving operational practices." LEGAL IMPACT: None. JM/BK:jf Https://otaywater365.sharepoint.com/sites/engcip/Shared Documents/R2156 14-inch Force Main Improvements/Staff Reports/OLD/BD 08-05-20 Staff Report 14FM AirVac.docx Attachments: Attachment A – Committee Action Attachment B – Budget Detail Exhibit A – Location Map ATTACHMENT A SUBJECT/PROJECT: R2156-001103 Award of a Construction Contract to Burtech Company for the Otay Mesa Pipeline Cathodic Protection Improvements Project COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on July 20, 2020 and the following comments were made: • Staff recommended that the Board award a construction contract to Burtech Pipeline, Inc. (Burtech) for the 14-Inch Force Main Air-Vac Replacements Project in an amount not-to-exceed $212,100. • It was noted that staff prepared the contract documents in-house under CIP R2116 (14-Inch, 927 Zone, Force Main Improvements), which was closed at the end of FY 2020 and superseded by the new CIP R2156 for FY 2021. • The Committee inquired if the combination of chlorine and high pressure (372 psi) contributed to the short life span of the air-vacuum valve assemblies. Staff stated yes both contributed to the short life span. Staff modified the Water Agency Standards to specify nearly all materials to be 316 stainless steel, to improve new air-vacuum valve assembly life expectancy for this asset. In further response to this question from the Committee, staff stated that the District is updating its disinfection evaluation at the Ralph W. Chapman Water Reclamation Facility to include UV disinfection system (next generation) that is more energy efficient than the equipment previously evaluated. Staff noted that a task order for this evaluation will be assigned to Arcadis. Following the discussion, the Committee supported staffs’ recommendation and presentation of this item to the full board on the consent calendar. ATTACHMENT B – Budget Detail SUBJECT/PROJECT: R2156-001103 Award of a Construction Contract to Burtech Company for the Otay Mesa Pipeline Cathodic Protection Improvements Project 7/7/2020 Budget 1,300,000 Planning 500,000 - 500,000 500,000 Future Phase Condition Assessment Total Planning 500,000 - 500,000 500,000 Design 001102 100,000 - 100,000 100,000 Future Phase Spot Repair Design Total Design 100,000 - 100,000 100,000 Construction INFRASTRUCTURE EQUIPMENT & MATERIALS 27,130 - 27,130 27,130 PACIFIC PIPELINE SUPPLY INC 212,100 - 212,100 212,100 Burtech Pipeline 8,484 8,484 8,484 CM @4% 10,605 10,605 10,605 Inspection @5% 10,605 10,605 10,605 Staff Time @5% 10,605 10,605 10,605 Contingency @5% 400,000 400,000 400,000 Future Phase Spot Repair Construction Total Construction 679,529 - 679,529 679,529 Grand Total 1,279,529 - 1,279,529 1,279,529 Vendor/Comments Otay Water District r2156-RecPL 14" RWCWRF Effluent Force Main Imp Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost OTAY WATER DISTRICT14-INCH FORCE MAIN AIR-VAC RELOCATIONSLOCATION MAP EXHIBIT A CIP R2156F C:\OneDrive\Otay Water District\ENG CIP - Documents\R2156 14-inch Force Main Improvements\Graphics\Exhibits-Figures\Exhibit A, Location Map, Air-Vac Relocations.mxd C A M P O R D JAMACHA SALTCREEKGOLFCOURSE JUNCTION BOX 14-INCH FORCE MAIN 12-INCH GRAVITY MAIN RALPH W. CHAPMANWATERRECYCLINGFACILITY " BLVD !\ ?Ë ?Ë J A M A C H A R D JAMACHA BLVD SWEETWATERRESERVOIR SWEETWATER RI V E R OTAY WATERDISTRICT SWEETWATERAUTHORITY VICINITY MAP PROJECT SITE NTSDIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ?ò Aä%&s ?p ?Ë!\ F 0 0.50.25 Miles STAFF REPORT TYPE MEETING: Regular Board Meeting MEETING DATE: August 5, 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 08-05-20.doc AGENDA ITEM 8a 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:Desalination Committee MEETING DATE:August 5, 2020 SUBMITTED BY:Bob Kennedy Engineering Manager CIP./G.F. NO:P2451- 001101 DIV. NO.ALL APPROVED BY: Rod Posada, Chief, Engineering Jose Martinez, General Manager SUBJECT:Informational Update for the Rosarito Desalination Plant and the Otay Mesa Conveyance and Disinfection System Projects GENERAL MANAGER’S RECOMMENDATION: No recommendation. This is an informational item only. COMMITTEE ACTION: Please see Attachment A. PURPOSE: To update the Otay Water District (District) Desalination Committee (Committee) on the progress of the Rosarito Desalination Plant and the Otay Mesa Conveyance and Disinfection System Projects (Project)(see Exhibit A for District Project location). ANALYSIS: This item was last presented to the Committee as an update at a meeting held on January 22, 2020. The updates or significant milestones that have been reached since the last update to the Committee include: Project Direction Aguas de Rosarito S.A.P.I. de C.V. (AdR), the special purpose company formed to own the Project, signed a 40-year definitive public-private partnership agreement with the State of Baja California (State) on August 25, 2016 to build a desalination AGENDA ITEM 9 2 plant and conveyance pipeline (Rosarito Project) and operate it for 37 years. The companies that make up AdR include a Mexican company called N.S.C. Agua S.A. de C.V. (NSCA), that is a subsidiary of Cayman- Islands based Consolidated Water (CWCO), together with one or more affiliates of Greenfield SPV VII, S.A.P.I. de C.V. (Greenfield), a Mexico company managed by an affiliate of a leading U.S. asset manager, and Suez Medio Ambiente México, S.A. de C.V., ("Suez"), a subsidiary of SUEZ International, S.A.S. The APP Contract does not become effective until the State establishes and registers various payment trusts, guaranties, and bank credit lines for specific use by the Rosarito Project. During the congressional session that ended in March 2019, the State congress passed Decreto #335, which renewed fiscal authorizations to put in place various obligations. Decreto #335 was set to expire at the end of 2019, however, a last- minute extension of six months was granted by congress. Without the Decreto’s approval, the State is not authorized to put the payment guaranties in place and cannot complete key conditions precedent for financial close. On June 29, 2020, AdR received a letter (the “Letter” see Exhibit B) from the Director General of CEA terminating the APP Contract. The reasoning provided in the Letter for the decision to terminate the APP Contract is that the Project (a) is not financially feasible due to increases in the construction, operating, and financing costs for the Project, in addition to negative changes in economic conditions (e.g., interest rates and currency exchange rates); (b) is not sustainable for CEA and CESPT given its financial unfeasibility; (c) puts pressure to increase the rates charged to customers; (d) would force the State to cover a deficit of CEA and CESPT, thus preventing the State from spending on investment programs or social expenditures; and (e) negatively affects the general interest. The Letter requests that AdR provide an inventory of the assets that currently comprise the “Project Works” (as defined in the APP Contract) for the purpose of acknowledging and paying the non-recoverable expenses made by AdR in connection with the Project, with such reimbursement to be calculated in accordance with the terms of the APP Contract. 3 Rosarito Desalination Project in the News The Rosarito Beach Desalination project and water shortages are subjects in the national, state, and local news, as well as in Mexico in the State of Baja California. In a June 30, 2020 article in BNAmericas entitled, “Mexico desal projects move forward despite COVID-19”, it noted that the coronavirus pandemic has not altered plans to construct four desalination plants including the Playas de Rosarito in Baja California project. (Exhibit C) In a July 4, 2020 article in the San Diego Union Tribune entitled, “Baja California governor accuses big US companies of water theft”, it noted that “an independent audit of Baja California’s water agency alleges that former employees of the utility colluded with international corporations to defraud the state out of at least $49.4 million.” (Exhibit D) In a July 12, 2020 article in the San Diego Union Tribune entitled, “Governor says Baja used water as a piggy bank. Critics worry about his bigger plan”, it noted that “Bonilla has been a key proponent of the desalination plant, strongly advocating for it on both sides of the border, but he says the stalled project has nothing to do with the audit. It’s not even going to be built during my term.” (Exhibit E) In a July 13, 2020 article in the Water Desalination Report entitled, “State Government Cancels Rosarito SWRO”, it noted the reasons the state mentioned in the termination letter, including the project is not financially feasible, increases pressure to raise water rates, and prevents the state from spending on investment or social programs. (Exhibit F) In a July 14, 2020 article in the Adelante Valle entitled, “Reporta corporativo cancelación de planta desaladora en Baja California”, it noted that The Baja California State Water Commission decided to cancel the Playas de Rosarito Desal Plant Project. (Exhibit G) In a July 15, 2020 article in the Bergeron Report entitled, “Bonilla cancels desalination plant contract previously promoted”, it noted that “Jaime Bonilla Valdez was director of the Otay Water District, California, where he supported the project to buy desalinated water imported from Mexico....” (Exhibit H) 4 In a July 15, 2020 article in the San Diego Union Tribune entitled, “Cancelan construcción de desalinizadora en Baja California”, it noted that “last November 7, the current Governor Jaime Bonilla, who presided over the Otay Water District for several years, expressed that the state could not pay 158 million pesos per month.” (Exhibit I) In a July 15, 2020 article in Newsweek Mexico entitled, “Planea Bonilla otra desalinizadora para BC; sería más pequeña” it noted that a smaller desalination plant is planned for Baja California. (Exhibit J) In a July 19, 2020, article the Monitor Economico de Baja California entitled, “Gobierno de BC reconoce nuevo proyecto de desaladora para Tijuana”, it noted that “After cancelling the contract with the winning company of the tender of the Playas de Rosarito desalination plant, the Secretary for Water Management, Sanitation and Protection (SEPROA), Salomón Faz Apodaca, acknowledged that they are discussing a new desalination project for the city of Tijuana which must occur within 3 years.” (Exhibit K) In a July 20, 2020 article in the Voice of San Diego entitled, “The Latest in Baja’s Water Saga”, it stated “The current state of the desalination plant is … confusing.” The article noted that the project has appeared “to resurface in a new plan backed by Bonilla, though it would be smaller”. (Exhibit L) Contract with AECOM The contract with AECOM expired on June 30, 2018 and was not extended. Presidential Permit The Department of State issued a Presidential permit (Permit) to the District on May 16, 2017, authorizing the District to construct, connect, operate, and maintain cross-border water pipeline facilities for the importation of desalinated seawater at the international boundary between the United States and Mexico in San Diego County, California. This Permit will expire unless work begins on the cross-border pipeline or the permit is extended by May 16, 2022. The District reached out to the State Department to see if this Permit could be assigned by the District to another agency and early indications are this is possible. 5 FISCAL IMPACT: Joe Beachem, Chief Financial Officer No fiscal impact as this is an informational item only. See Attachment B - Budget Detail. As of June 30, 2020, $4,168,651 has been spent. Staff has stopped all activities and expenditure concerning the Project. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide exceptional water and wastewater service to its customers, and to manage District resources in a transparent and fiscally responsible manner” and the General Manager’s Vision, "To be a model water agency by providing stellar service, achieving measurable results, and continuously improving operational practices." LEGAL IMPACT: None. BK/RP:jf P:\WORKING\CIP P2451 Desalination Feasibility Study\Staff Reports\Committee Desal Update 2020- 2\Revised Staff Report 7-21-20\Committee 07-24-20, Staff Report, Desal Update, (BK-RP)-Rev.docx Attachments: Attachment A – Committee Action Attachment B – Budget Detail Exhibit A – Project Location Exhibit B – SEC Form 8-K, CWCO, dated June 29, 2020 Exhibit C – Mexico desal projects move forward despite COVID-19, BNAmericas, dated June 30, 2020 Exhibit D – Baja California governor accuses big US companies of water theft, San Diego Union Tribune, dated July 4, 2020 Exhibit E – Governor says Baja used water as a piggy bank. Critics worry about his bigger plan, San Diego Union Tribune, dated July 12, 2020 Exhibit F – State Government Cancels Rosarito SWRO, Water Desalination Report, dated July 13, 2020 Exhibit G – Reporta corporativo cancelación de planta desaladora en Baja California, Adelante Valle, dated July 14, 2020 Exhibit H – Bonilla cancels desalination plant contract previously promoted, Burgeron Report, dated July 15, 2020 6 Exhibit I – Cancelan construcción de desalinizadora en Baja California, San Diego Union Tribune En Espanol, dated July 15, 2020 Exhibit J – Planea Bonilla otra desalinizadora para BC; sería más pequeña, Newsweek Mexico, dated July 15, 2020 Exhibit K – Gobierno de BC reconoce nuevo proyecto de desaladora para Tijuana, Monitor Economico, dated July 19, 2020 Exhibit L – The Latest in Baja’s Water Saga, Voice of San Diego, dated July 20, 2020 ATTACHMENT A SUBJECT/PROJECT: P2451-001101 Informational Update for the Rosarito Desalination Plant and the Otay Mesa Conveyance and Disinfection System Projects COMMITTEE ACTION: The Desalination Project Committee (Committee) reviewed this informational item at a meeting held on July 24, 2020 and the following comments were made: •Staff provided an update for the Rosarito Desalination Plant and the Otay Mesa Conveyance and Disinfection System Projects and reviewed information from the staff report. •The Committee suggested that staff assess the District’s planning documents and determine if the Rosarito Desalination Project should continue to be included in the District’s water supply planning documents. •Staff indicated that water supply projects are listed under three categories within the District’s Urban Water Management Plan: o Verifiable Projects o Additional Planned Projects o Conceptual Projects The Desalination Project fits into the Additional Planned Projects because it has an environmental document. Staff recommends keeping the project in the District’s Urban Water Management Plan, along with the other water studies the District has performed to date, for at least another five (5) years and see if the Rosarito Desalination Project possibly gets revived or replaced by other water supply projects. The Committee suggested updating the description of the project to include the possibility that the project size could be reduced. 8 •It was indicated that the District’s Urban Water Management Plan is being updated now and CWA is also currently updating their plan. CWA typically completes their plan first and the member agencies utilize the information in CWA’s plan to complete their plans. The District’s final draft of its Urban Water Management Plan is due by July 1, 2021. •Staff explained that each member agency has its own water supply projects. The District currently has two projects under the Additional Planned Projects (Rosarito Desalination Plant Project and the Rancho del Rey Groundwater Well Development Project). Under the Conceptual Projects category, the District has three projects. Each agency has its own water supply projects and they are all included as potential sources of water that individual agencies or the region can draw upon should our region have a prolonged drought or a water shortage. It was further indicated that some of these projects are ready to draw upon, some are more feasible than others, etc., and the list is quite lengthy. •The Committee discussed that the Presidential Permit is scheduled to expire in May 2022 and staff intends to renew the permit prior to its expiration. Staff indicated that it is possible to extend the permit and they will be exploring the requirements to do so. They have also been keeping in close touch with the State Department. It was additionally noted that there is a possibility there will be a change in administration which could change the direction of the State Department. Staff is continuing to monitor this and, thus far, the State Department has been very supportive of the project. •The last formal communication with representatives from Mexico regarding the Rosarito Desalination Project is the Letter of Interest that the District addressed to the Comisión Estatal del Agua de Baja California in August 2019. The letter indicated the District’s interest and outlined conditions that would make it a feasible supply source for the District. •It was discussed that Baja California has a need for the desalination plant and staff believes that they plan to continue with the project. The question is how large a plant they will build based on the financial requirements and affordability. The State also could continue negotiations with AdR or start negotiations with another company. Nothing is certain at this time. 9 •There was also discussion that AdR owns the land on which the desalination plant would have been sited and the site is the most feasible location. If the State of Baja decides to take over the project, AdR would be reimbursed for their investment plus an already negotiated mark-up. •The Committee discussed that the District should develop a formal statement that indicates that our regions are dependent upon each other and water security is a fundamental part of our regions’ economic prosperity. Anything we can do to enhance water security in our regions is of interest to the District. The District is actively observing the Rosarito Desalination Project and if a project proceeds in the future, it is open to analyzing the project as a potential water supply resource. Upon completion of the discussion, the Committee supported presentation to the full board as an informational item. 10 ATTACHMENT B – Budget Detail SUBJECT/PROJECT: P2451-001101 Informational Update for the Rosarito Desalination Plant and the Otay Mesa Conveyance and Disinfection System Projects Date Updated 06/30/2020 Budget 35,700,000 Phases Planning Consultant Contracts 26,369 26,369 -26,369 BROWNSTEIN HYATT FARBER 98,577 98,577 -98,577 CAMP DRESSER & MCKEE INC13,311 13,311 -13,311 CPM PARTNERS INC 380,200 380,200 -380,200 HECTOR I MARES-COSSIO 71,531 71,531 -71,531 MARSTON & MARSTON INC 26,700 26,700 -26,700 REA & PARKER RESEARCH4,173 4,173 -4,173 SALVADOR LOPEZ 225,499 225,499 -225,499 SILVA-SILVA INTERNATIONAL 34,600 13,400 21,200 34,600 SVPR COMMUNICATIONS Meals and Incidentals 21,944 21,944 -21,944 STAFFPrinting6161 -61 MAIL MANAGEMENT GROUP INC Professional Legal Fees 2,516 2,516 -2,516 ARTIANO SHINOFF 162,041 162,041 -162,041 GARCIA CALDERON & RUIZ LLP 43,175 43,175 -43,175 SOLORZANO CARVAJAL GONZALEZ Y32,612 32,612 -32,612 STUTZ ARTIANO SHINOFF Regulatory Agency Fees 3,120 3,120 -3,120 COUNTY OF SAN DIEGO 2,142 2,142 -2,142 STATE WATER RESOURCES Service Contracts 500 500 -500 REBECA SOTURA NICKERSON875875-875 LEONARD VILLAREAL 32,463 32,463 -32,463 (W)RIGHT ON COMMUNICATIONS INC 39,500 39,500 -39,500 BUSTAMANTE & ASSOCIATES LLC 290 290 -290 SAN DIEGO DAILY TRANSCRIPT685685 -685 SAN DIEGO UNION-TRIBUNE, THE Standard Salaries 1,212,336 1,212,336 -1,212,336 Total Planning 2,435,219 2,414,019 21,200 2,435,219 Design 001102Consultant Contracts 1,432,253 1,432,253 -1,432,253 AECOM TECHNICAL SERVICES INC 3,952 3,952 -3,952 AIRX UTILITY SURVEYORS INC 5,000 5,000 -5,000 ATKINS 8,818 8,818 -8,818 CPM PARTNERS INC5,109 5,109 -5,109 MARSTON+MARSTON INC 35,520 35,520 -35,520 MICHAEL R WELCH PHD PE Meals, Travel, Incidentals 3,457 3,457 -3,457 STAFF Professional Legal Fees 7,761 7,761 -7,761 STUTZ ARTIANO SHINOFFRegulatory Agency Fees 1,127 1,127 -1,127 STATE WATER RESOURCES Service Contracts 1,084 1,084 -1,084 SAN DIEGO UNION-TRIBUNE LLC 114 114 -114 REPROHAUS CORP Standard Salaries 250,108 250,108 -250,108 Total Design 1,754,303 1,754,303 -1,754,303 Construction Standard Salaries 329 329 -329 Total Construction 329 329 -329 Grand Total 4,189,851 4,168,651 21,200 4,189,851 Vendor/Comments Otay Water DistrictP2451 Otay Mesa Desalination Conveyance and Disinfection System Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost 571-1RESERVOIR 870-1RESERVOIR OTAY MESA RD EN R I C O F E R M I D R DONOVA N DONOVANCORRECTIONALFACILITY SIEMPRE VIVA RD G.F. BAILEYDETENTION FACILITY AIRWAY RD AL T A R D PASEO DE LA F U E N T T E STATE PRISON RD ALT A R D MEXICO USA OW D B O U N D A R Y FUTURE FUT U R E ?ò ?Ü ?Ü FUTUREPORT OFENTRY OTAY WATER DISTRICTOTAY MESA DESALINATION CONVEYANCEAND DISINFECTION SYSTEM PROJECT EXHIBIT A CIP P2451 0 2,0001,000 Feet F P: \ W O R K I N G \ C I P P 2 4 5 1 D e s a l i n a t i o n F e a s i b i l i t y S t u d y \ G r a p h i c s \ E x h i b i t s - F i g u r e s \ E x h i b i t A , M a r c h 2 0 1 5 . m x d Legend Pipeline Alternative 1 Pipeline Alternative 2 Pipeline Alternative 3 VICINITY MAP PROJECT SITE NTSDIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ?ò Aä%&s ?p ?Ë !\ F Document Contents https://www.snl.com/Cache/IRCache/ca2f6df5c-512b-d524-d499-087ee152c1c3.html#tm2024078d1_ex10-1.htm[7/8/2020 10:13:51 AM] Toggle SGML Header (+) Section 1: 8-K (FORM 8-K) UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 June 29, 2020 (Date of earliest event reported) CONSOLIDATED WATER CO. LTD. (Exact Name of Registrant as Specified in Charter) Cayman Islands, B.W.I.0-25248 98-0619652 (State or Other Jurisdiction of (Commission File No.)(IRS Employer Identification No.) Incorporation) Regatta Office Park Windward Three, 4th Floor West Bay Road, P.O. Box 1114 Grand Cayman, KY1-1102 Cayman Islands (Address of Principal Executive Offices) (345) 945-4277 (Registrant’s telephone number, including area code) Not Applicable (Former Name or Former Address, if Changed Since Last Report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below): ¨Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ¨Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ¨Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ¨Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s)Name of each exchange on which registered Class A common stock, $0.60 par value CWCO The Nasdaq Global Select Market Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ¨ Go to... Document Contents https://www.snl.com/Cache/IRCache/ca2f6df5c-512b-d524-d499-087ee152c1c3.html#tm2024078d1_ex10-1.htm[7/8/2020 10:13:51 AM] If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨ Item 1.02 Termination of a Material Definitive Agreement. As previously reported, Consolidated Water Co. Ltd. (the “Company”), through its wholly-owned Netherlands subsidiary, Consolidated WaterCooperatief, U.A. (“CW-Cooperatief”), owns a 99.99% interest in N.S.C. Agua, S.A. de C.V. (“NSC”), a development stage Mexican company.NSC was formed in 2010 to pursue a project (the “Project”) that originally encompassed the construction, operation and minority ownership of a100 million gallon per day seawater reverse osmosis desalination plant to be located in northern Baja California, Mexico and accompanyingpipelines to deliver water to the Mexican potable water system. Through a series of transactions completed between 2012 and 2014, NSC purchased 20.1 hectares of land for approximately $20.6 million onwhich the proposed Project’s plant was to be constructed. In 2012, NSC entered into a lease (the “Lease”), with an effective term of 20 years from the date of full operation of the Project’s desalination plant, with the Comisión Federal de Electricidad for approximately 5,000 square meters of land on which it planned to construct the water intake and discharge works for the plant. The Lease may be cancelled by NSC if the Project does not proceed. In August 2014, the State of Baja California (the “State”) enacted new legislation to regulate Public-Private Association projects which involve thetype of long-term contract between a public-sector authority and a private party required to complete the Project (the “APP Law”). Pursuant to thisnew legislation, in March 2015, NSC submitted a detailed proposal (the “APP Proposal”) to the Ministry of Infrastructure and Urban Developmentof the State of Baja California (“SIDUE”) that complied with the requirements of the new legislation. The new legislation required that suchproposal be evaluated by SIDUE and submitted to the Public-Private Association Projects State Committee for review and authorization. In response to its APP Proposal, in September 2015, NSC received a letter dated June 30, 2015 from the Director General of the Comisión Estataldel Agua de Baja California (“CEA”), the State agency with responsibility for the Project, stating that (i) the Project is in the public interest withhigh social benefits and is consistent with the objectives of the State development plan; and (ii) that the Project should proceed, and the requiredpublic tender should be conducted. In November 2015, the State officially commenced the required public tender for the Project, the scope ofwhich the State defined as a first phase to be operational in 2019 consisting of a 50 million gallon per day plant and an aqueduct that connects to theMexican potable water infrastructure and a second phase to be operational in 2024 consisting of an additional 50 million gallons per day of production capacity. A consortium (the “Consortium”) comprised of NSC, NuWater S.A.P.I. de C.V. (“NuWater”) and Suez Medio Ambiente México, S.A. de C.V. (“Suez MA”), a subsidiary of SUEZ International, S.A.S., submitted its tender for the Project in April 2016 and in June2016, the State designated the Consortium as the winner of the tender process for the Project. In August 2016, NSC and NuWater incorporated Newco under the name Aguas de Rosarito S.A.P.I. de C.V. (“AdR”) to pursue completion of theProject and executed a shareholders agreement for AdR agreeing among other things that (i) AdR would purchase the land and other Project assetsfrom NSC on the date that the Project begins commercial operation and (ii) AdR would enter into a Management and Technical ServicesAgreement with NSC effective on the first day that the Project begins commercial operation. NSC initially owned 99.6% of the equity of AdR. InFebruary 2018, NSC acquired the remaining 0.4% ownership in AdR from NuWater. On August 22, 2016, the Public Private Partnership Agreement for public private partnership number 002/2015, bid number SIDUE-CEA-APP-2015-002 (“APP Contract”), was executed between AdR, CEA, the Government of Baja California as represented by the Secretary of Planning andFinance and the Public Utilities Commission of Tijuana (“CESPT”). The APP Contract required AdR to design, construct, finance and operate aseawater reverse osmosis desalination plant (and accompanying aqueduct) with a capacity of up to 100 million gallons per day in two phases: thefirst with a capacity of 50 million gallons per day and an aqueduct to the Mexican potable water system in Tijuana, Baja California and the secondphase with a capacity of 50 million gallons per day. The first phase was to be operational within 36 months of commencing construction and thesecond phase was to be operational by July 2024. The APP Contract further required AdR to operate and maintain the plant and aqueduct for a period of 37 years starting from the commencement of operation of the first phase. At the end of the operating period, ownership of the plant and aqueduct would have been transferred to CEA. 2 Document Contents https://www.snl.com/Cache/IRCache/ca2f6df5c-512b-d524-d499-087ee152c1c3.html#tm2024078d1_ex10-1.htm[7/8/2020 10:13:51 AM] In December 2016, the Congress of the State of Baja California, Mexico (the “Congress”) passed Decreto #57 which, among other things, ratifiedand authorized the payment obligations of the corresponding public entities under the APP Contract and authorized the corresponding public entities to obtain a credit facility to guarantee their payment obligations. During 2017, following consultations between representatives of the State of Baja California and the Ministry of Finance of the Federal Government of Mexico, it was determined that certain amendments to Decreto #57were required to comply with recent changes to the Federal Financial Discipline Law for Federative Entities and Municipalities. In addition, anamendment of Decreto #57 was required to authorize the inclusion of revenue from the CESPT in the primary payment trust for the Project. Theseamendments were included in Decreto #168, which was approved by the Congress in December 2017. The authorization of the paymentobligations of the public entities under the APP Contract and for the execution of the credit agreement to guarantee such payment obligations givenin Decreto #57, as amended by Decreto #168, expired on December 31, 2018. During the congressional session held at the end of March 2019, theCongress passed Decreto #335, which renewed the authorizations for the various payment trusts, guaranties and bank credit lines required to beestablished for the Project by the State entities. Decreto #335 expired December 31, 2019. During the congressional session held at the end ofDecember 2019, the Congress passed Decreto #37, which renewed the authorizations for the various payment trusts, guaranties and bank creditlines required to be established for the Project by the State entities. Decreto #37 expired June 30, 2020. Both the exchange rate for the Mexican peso relative to the dollar and general macroeconomic conditions in Mexico varied since the execution ofthe APP Contract. These changes adversely impacted the estimated construction, operating and financing costs for the Project. The APP Contractand the APP Law allow for the parties to negotiate (but do not guarantee) modifications to the consideration (i.e. water tariff) under the APPContract in the event of such significant macroeconomic condition changes. In February 2017, AdR submitted proposals to CEA requesting thedefinition of the mechanism required by the APP Contract to update the consideration under the APP Contract for changes in foreign exchangerates, lending rates and certain laws which have impacted the Project. On June 1, 2018, AdR and CEA executed an amendment to the APP Contractwhich, among other things, increased the scope of Phase 1 of the Project by including the aqueduct originally designated for Phase 2, andaddressed AdR’s concerns regarding the impact on the Project for changes in the exchange rate for the peso relative to the dollar and changes ininterest rates that have occurred subsequent to the submission of the Consortium’s bid for the Project. As a result of this amendment to the APPContract, the final cost of Phase 1 and the related consideration to be charged by AdR under the APP Contract was to be determined based uponthe bid submitted by the Consortium, the changes set forth in the amendment to the APP Contract and the economic conditions (e.g. interest ratesand currency exchange rates) in effect on the financial closing date for Phase 1. In February 2018, AdR executed a subscription agreement (the “Subscription Agreement”) for the equity funding required for the Project. TheSubscription Agreement calls for NSC to retain a minimum of 25% of the equity in AdR. One or more affiliates of Greenfield SPV VII, S.A.P.I. deC.V. (“Greenfield”), a Mexico company managed by an affiliate of a leading U.S. asset manager, will acquire a minimum of 55% of the equity ofAdR. The Subscription Agreement also provides Suez MA with the option to purchase 20% of the equity of AdR. If Suez MA does not exercisethis option, NSC will retain 35% of the equity of AdR and Greenfield will acquire 65% of the equity of AdR. The Subscription Agreement willbecome effective when the additional conditions related to the Project are met, including but not limited to those conditions discussed previously.The aggregate funding to be provided by AdR’s shareholders for the Project, in the form of equity and subordinated shareholder loans, is presentlyestimated at approximately 20% of the total cost of Phase 1 of the Project. This Subscription Agreement was scheduled to expire on September 30,2020. 3 NSC expected to generate a portion of its funding for AdR through the sale to AdR of the land it had purchased for the Project. On June 29, 2020, AdR received a letter (the “Letter”) from the Director General of CEA terminating the APP Contract. The reasoning provided in the Letter for the decision to terminate the APP Contract is that the Project (a) is not financially feasible due to increases in the construction, operating and financing costs for the Project in addition to negative changes in economic conditions (e.g. interest rates and currency exchange rates); (b) is not sustainable for CEA and CESPT given its financial unfeasibility; (c) puts pressure to increase the rates charged to customers; (d) would force the Government of the State to cover a deficit of CEA and CESPT, thus preventing the State Government from spending on investment programs or social expenditures; and (e) negatively affects the general interest. The Letter requests that AdR provide an inventory of the assets that currently comprise the “Project Works” (as defined in the APP Contract) for the purpose of acknowledging and paying the non-recoverable expenses made by AdR in connection with the Project, with such reimbursement to be calculated in accordance with the terms of the APP Contract. The Company, AdR and NSC plan to vigorously pursue all legal remedies and courses of action available under the APP Contract and applicable law (including, if necessary, international treaties and agreements) with respect to any rights they may have upon termination of the APP Contract, including the reimbursement of expenses and investments. However, the Company cannot provide any assurances that it will be able to obtain reimbursement for any expenses or investments made with respect to the Project. Document Contents https://www.snl.com/Cache/IRCache/ca2f6df5c-512b-d524-d499-087ee152c1c3.html#tm2024078d1_ex10-1.htm[7/8/2020 10:13:51 AM] As a consequence of the termination of the APP Contract, the Company, AdR and NSC expect to and shall terminate the various agreements ancillary to the Project. Also as a consequence of the termination of the APP Contract, the land NSC purchased and the rights of way deposits it has made may have declined in value due to the loss of their strategic importance derived from their incorporation in the Project. Due to the uncertainty associated with the amount and timing of any reimbursement from the State Government, the Company may be required to record impairment losses to reduce the carrying values of the land and/or the rights of way (which amounted to approximately $21.2 million and $3.0 million, respectively, at March 31, 2020) to their current fair values. Such impairment losses could have a material adverse impact on the Company’s consolidated financial condition and results of operations. The summary of the Letter does not purport to be complete and is qualified in its entirety by reference to the full text of the Letter that is filed herewith as Exhibit 10.1. Note about forward-looking statements. Certain statements in this report, other than purely historical information, including estimates, projections, statements relating to the Company’s business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward- looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company’s products and services in the marketplace, the outcome of the Company and NSC’s attempt to pursue legal remedies and courses of action available under the APP Contract and applicable law with respect to NSC’s rights upon termination of the APP Contract, the Company’s ability to manage growth and other risks detailed in the Company’s periodic report filings with the Securities and Exchange Commission. Except as otherwise required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. 4 Item 9.01.Financial Statements and Exhibits. (d)Exhibits. Exhibit No. Title 10.1 Letter dated June 29, 2020 from the Director General of the Comisión Estatal del Agua de Baja California to Aguas de Rosarito, S.A.P.I. de C.V. 5 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CONSOLIDATED WATER CO. LTD. By: /s/ David W. Sasnett Name: David W. Sasnett Document Contents https://www.snl.com/Cache/IRCache/ca2f6df5c-512b-d524-d499-087ee152c1c3.html#tm2024078d1_ex10-1.htm[7/8/2020 10:13:51 AM] Title:Executive Vice President & Chief Financial Officer Date: July 6, 2020 6 EXHIBIT INDEX Exhibit No. Title 10.1 Letter dated June 29, 2020 from the Director General of the Comisión Estatal del Agua de Baja California to Aguas de Rosarito, S.A.P.I. de C.V. 7 (Back To Top) Section 2: EX-10.1 (EXHIBIT 10.1) EXHIBIT 10.1 [Seal that says AGENCY: STATE WATER COMMISSION OF BAJA CALIFORNIA.CEA – Comisión Estatal del Agua]SECTION: GENERAL DIRECTION OFFICIAL COMMUNICATION: DG/122/2020 Mexicali, Baja California, on June 29th, 2020. [Seal that says STATE WATER COMMISSION OF BAJA CALIFORNIA/ DISPATCHED/ JUNE 29, 2020] AGUAS DE ROSARITO, S.A.P.I. de C.V. Boulevard Rodolfo Sánchez Taboada number 10488, suite 801, Zona Río, Tijuana Baja California, Mexico Postal Code 22320. and/or Paseo de los Héroes number 10289-302, Col. Zona Urbana Rio Tijuana Tijuana Baja California, Mexico Postal Code 22010. Present. We make reference to the Public-Private Partnership Agreement Number C-SIDUE-CEA-APP-2015-002, entered into on August 22nd, 2016, by and between the STATE WATER COMMISSION OF BAJA CALIFORNIA (hereinafter, the “CEA”) y AGUAS DE ROSARITO S.A.P.I. de C.V. (hereinafter, the “DEVELOPER”); as well as STATE COMMISSION OF PUBLIC UTILITIES OF TIJUANA (hereinafter, “CESPT”) in its capacity as joint obligor, and by, at that time, the Ministry of Planning and Finance as guarantor in the Current Account Credit Facility. Said agreement was subject matter of Public Bid number SIDUE-CEA-APP-2015-002, was notarized before the public faith of Mr. Rodolfo González Quiroz, Notary Public number 13 of the City of Mexicali, Baja California, as evidenced in notarial deed number 78,242, volume 1,890, dated August 26th, 2016, which was amended through amendment agreement dated June 1st, 2018, (hereinafter, the amendment agreement dated June Document Contents https://www.snl.com/Cache/IRCache/ca2f6df5c-512b-d524-d499-087ee152c1c3.html#tm2024078d1_ex10-1.htm[7/8/2020 10:13:51 AM] 1st, 2018 will be referred as “Amendment Agreement”; and jointly the Amendment Agreement and the agreement C-SIDUE-CEA-APP-2015- 002 will be referred to as the “APP Agreement”). The APP Agreement, as established in the Amendment Agreement, is for the “Construction, Financing and Operation of a Desalination Plant in the Municipality of Playas de Rosarito” consisting of “A Desalination Plant with a capacity of up to 4.4 m3/second in two stages: the first with a capacity of 2.2 m3/second and an aqueduct to the delivery point in Tank 3 up to the El Florido Water Treatment Plant both in the Municipality of Tijuana, the expansion to 20,000 m3 of the mentioned Tank 3, and the second with a capacity of 2.2 m3/second, includes the Design, Preparation of the Executive Project, Construction, Electromechanical Equipment and functioning Tests of the Desalination Plant and the Aqueducts; as well as, their Operation, Conservation, Maintenance including its conduction and delivery of up to 4,400 liters per second, the treatment and the disposition of the rejection water during an operation period of 37 years” (hereinafter the “Project”). [Illegible signature][Illegible signature]1 [Seal that says AGENCY: STATE WATER COMMISSION OF BAJA CALIFORNIA.CEA – Comisión Estatal del Agua]SECTION: GENERAL DIRECTION OFFICIAL COMMUNICATION: DG/122/2020 The terms written with an initial capital letter, the meaning of which is not expressly defined herein, shall have the meaning ascribed to them in theAPP Agreement. In this regard, the fifth paragraph of Clause First of the APP Agreement provides that the guaranteed annual volume of water at 95% efficiency forboth stages of the Project shall be 131.2 million cubic meters, equivalent to 4,162 liters per second of Potable Water; the first stage being 65.6million cubic meters, equivalent to 2,081 liters per second, and for the second stage 65.6 million cubic meters, equivalent to 2,081 liters per second at the Measurement Point, regardless of its conduction to the Delivery Point, as well as the disposition of the Rejection Water1. The public-private partnership projects, in accordance with the provisions of article 2, paragraph two of the Public-Private Partnership Law for the State of Baja California (the “APP Law”)2, must be fully justified, specify the social benefit that is sought to be obtained, and evidence the need or convenience before other forms of financing, principles that have ceased being in effect in the case of the Project, because, in the event of continuing with the fulfillment of the agreed obligations, a damage would be caused to the CEA, to the CESPT, to the State of Baja California and to the users of the service by generating strong pressure to increase the current rates, as will be evidenced below, with the provisions of the first paragraph of Article 123 of the Regulations to the APP Law3 and Clause Thirtieth, section V, number 14 of the APP Agreement being applicable. Legal representation of Mr. Luis Granados Pacheco, General Director of the State Water Commission The undersigned, Mr. Luis Granados Pacheco is the General Director of the State Water Commission of Baja California, pursuant to the terms of the appointment issued in my favor on November 1st, 2019, by the Constitutional Governor of the State of Baja California, Mr. Jaime Bonilla Valdez and ratified before the H. Board of Governors of the CEA, which is supported by the notarization of the corresponding minutes which corresponds to volume 5,103, with number 183,694, dated November 21st, 2020, notarized before the faith of Notary Public number Five of the city of Mexicali Baja California, Mr. Luis Alfonso Vidales Moreno, which was registered in the Public Registry of Property and Commerce in the City of Mexicali Baja California, by means of entry 5883674 dated November 22nd, 2019 of the civil section, who exercises the legal representation of said organization in accordance with articles 11 and 12 of the Decree by which the State Water Commission of the State of Baja California is created, published in the Official Gazette of the State of Baja California on March 3rd, 1999 (hereinafter the “Decree for the Creation of the CEA”. 1 Clause First, paragraph fifth of the Public-Private Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Subject Matter of the APP contained in Clause Fifth of the Amendment Agreement to the Public-Private Partnership Agreement dated June 1st, 2018, named Amendment to the APP Clauses, pp 13-14. 2 Public-Private Partnership Law for the State of Baja California published in the Official Gazette of the State on August 22nd, 2014, article 2, second paragraph. […]In the terms provided for in this Law, the public-private partnership projects shall be fully justified, specify the social benefit that is sought andevidence the need or convenience before other forms of financing. 3 nd Document Contents https://www.snl.com/Cache/IRCache/ca2f6df5c-512b-d524-d499-087ee152c1c3.html#tm2024078d1_ex10-1.htm[7/8/2020 10:13:51 AM] Regulations for the Public-Private Partnership Law for the State of Baja California published in the Official Gazette of the State on August 22 , 2014, article 123, first paragraph. The Contracting Entity must agree in the Public-Private Partnership Agreement that it may be early terminated when general interest reasons occur or, when for justified cause, the need for the requirement of the originally agreed goods or services extinguishes, and it is evidenced that, continuing with fulfillment of the agreed obligation, would cause a damage or prejudice to the State. […] 4 Clause Thirtieth, Section V, Number 1 of the Public-Private Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Early Termination of the APP, Early Termination for reasons of general interest, pp 71-72. [Illegible signature][Illegible signature]2 [Seal that says AGENCY: STATE WATER COMMISSION OF BAJA CALIFORNIA.CEA – Comisión Estatal del Agua]SECTION: GENERAL DIRECTION OFFICIAL COMMUNICATION: DG/122/2020 Legal representation of Chemist Rigoberto Laborín Valdez, General Director of the State Commission of Public Utilities of Tijuana Chemist Rigoberto Laborín Valdez, has the authority to contract, obligate and agree on behalf of the CESPT in accordance with his functions, whoevidences his capacity by means of an appointment dated November first, two thousand nineteen, granted by Mr. Jaime Bonilla Valdez,Constitutional Governor of the State of Baja California, which was granted in accordance with the provisions of articles 49 fraction X of thePolitical Constitution of the Free and Sovereign State of Baja California, 2 and 12 of the Organic Law of Public Administration of the State of BajaCalifornia, 21 of the Law of Quasigovernmental Entities of Baja California and 11 of the Law of the State Commissions of Public Utilities of theState of Baja California and through a power of attorney granted by its Board of Directors as evidenced in Public Deed Number 182,428, Volume 5,896, dated November 13th, 2019, which is duly notarized before Notary Public Number 3 of this city of Tijuana, Mr. Xavier Ibáñez Veramendi, registered in the Public Registry of Property and Commerce under Entry 6182154 of the Civil Section, with registration date December 4th, 2019. Opinion of the CEA as a Contracting Entity Pursuant to the terms of article 123 of the Regulations to the APP Law, on June 25th, 2020, the CEA issued the opinion supporting the early termination of the APP Agreement, which specifies the reasons and justified causes creating it and supporting and motivating such circumstance areprecised, which are communicated to the Developer herein, for the relevant legal, regulatory and contractual purposes (hereinafter the “CEAOpinion”). Resolution of the Board of Directors of the State Water Commission of Baja California. At the Fourth Extraordinary Session of the Board of Directors of the CEA held on June 26th, 2020, the Board of Directors of the CEA resolved to authorize the early termination of the APP Agreement for the reasons set forth in the CEA Opinion and authorized the undersigned, in his capacityas as CEA's General Manager, to proceed lawfully. [Illegible signature][Illegible signature]3 [Seal that says AGENCY: STATE WATER COMMISSION OF BAJA CALIFORNIA. CEA – Comisión Estatal del Agua]SECTION: GENERAL DIRECTION OFFICIAL COMMUNICATION: DG/122/2020 GROUNDS FOR THE EARLY TERMINATION OF THE APP AGREEMENT FOR CAUSES OF GENERAL INTEREST Articles 1, 2, 5, 10, 11 and 12 of the Decree for the Creation of CEA, 1 of the Decree amending the Executive Decree creating the Decentralized Organism known as State Water Commission, 111 and 112 of the APP Law, 123 of the Regulations to the APP Law, and other related provisions, as well as the provisions of Clauses First, Third, Fourth, Fifth, Thirtieth Section V, number 1, Thirty Third and Thirty Eighth of the APP Agreement and resolution number SE/008/26-06-20 passed during the Fourth Extraordinary Session of the Board of Directors of the CEA are the Document Contents https://www.snl.com/Cache/IRCache/ca2f6df5c-512b-d524-d499-087ee152c1c3.html#tm2024078d1_ex10-1.htm[7/8/2020 10:13:51 AM] basis for the early termination of the APP Agreement. REASON FOR THE EARLY TERMINATION OF THE APP AGREEMENT FOR CAUSES OF GENERAL INTEREST. Causes of general interest for the termination of the APP Agreement. In accordance with what is indicated in Clause Thirtieth, section V, number 1, item a), below are the causes of general interest that justifiablyevidence that if the obligations of the APP Agreement continue to be fulfilled, a damage would be caused to the CEA, to the CESPT, to the Stateof Baja California and to the users of the service, by generating strong pressure to increase the current rates, all the foregoing to the detriment of thegeneral interest. a)Description. As evidenced below, the current conditions of the Project have been substantially modified with respect to the original conditions arising from the Public Bid number SIDUE-CEA-APP-2015-0025, which trigger the provisions for terminating the APP Agreement for reasons of general interest in accordance with the legal, regulatory and contractual provisions that have been indicated andthe reasoning described herein; as it does not constitute a sustainable solution given its financial unfeasibility, as well as the damage thatwould be caused by continuing fulfillment of the obligations agreed in the APP Agreement. b)Justification. Under the APP Agreement, the Developer must carry out the necessary actions for the development of the Project consisting of the planning, definition and execution of all the actions that it considers necessary to supply for 37 years, the operation of a flow of up to 4,400 LPS of desalinated and potable water in two stages, each one of 2,200 LPS, to partially cover the demand in theMunicipalities of Tijuana and Playas de Rosarito in the State of Baja California. Originally, it was forseen that the second phase, corresponding to 2,200 LPS, would begin operations in the year 20246. 5 Exhibits 1, 4 and 5 of the Public-Private Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Call, Proposition and Scope of the works of the Reference Terms, respectively. 6 Cfr. Note 9. [Illegible signature][Illegible signature]4 [Seal that says AGENCY: STATE WATER COMMISSION OF BAJA CALIFORNIA.CEA – Comisión Estatal del Agua]SECTION: GENERAL DIRECTION OFFICIAL COMMUNICATION: DG/122/2020 Current Account Credit Facility The APP Agreement contains an obligation of CEA to carry out the contracting of a Current Account Credit line, which must comply with the following characteristics7: a.Be irrevocable and contingent; b.To guarantee to the Lenders of the Developer the fulfillment of the payment obligations in charge of the CEA; c.Have an amount equivalent to 3 months of the payment of the Consideration including the Value Added Tax. d.Have as a source of payment the necessary and sufficient percentage of the income from the tax on the remunerations for personal work plus the income from water rights collected by the CESPT for the rendering of its public utility service. e.Be in force as long as there are payment obligations in charge of the CEA under the APP Agreement (in the order of 37 years); This current account credit line implied a guarantee for an amount of $295.78 million pesos for phase 1 which was increased in $223.8 million pesos for phase 2, giving a total of $519.6 million pesos for both phases8. Original Consideration Document Contents https://www.snl.com/Cache/IRCache/ca2f6df5c-512b-d524-d499-087ee152c1c3.html#tm2024078d1_ex10-1.htm[7/8/2020 10:13:51 AM] The APP Agreement was executed with a bid amount equal to $98.6 million pesos of monthly consideration for the first phase and $74.6 million pesos for the second (at February 2016 prices). That is, the consideration for the two phases amounted to $173.2 million pesos including value added tax9. To place the above amounts into context, the monthly management income of CESPT (Audited in 2019) was of $328.8 million pesos and the operative result (management income minus operating expense) was $49.1 million pesos per month10. That is, the amount of the Consideration established in the APP Agreement11 only for phase 1 of $98.6 million pesos represents 30% of the income of the CESPT for 2019 and 200% of the operating result (income minus management expenses), therefore the payment of the Consideration would represent the creation of an annual deficit in the order of $593.17 million pesos to CESPT, this is due to obligation of the CESPT under the APP Agreement, of executing a water purchase and sale agreement in order for the CEA to have sufficient resources to pay the Consideration12. 7 Clause Twenty Ninth of the Public-Private Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Resources of the Consideration, pp. 68-70. 8 Item 6 of clause Twenty Ninth of the Public-Private Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Resources of the Consideration, pp. 69. 9 Exhibit 4 to the Public-Private Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Proposition. 10 Opinion on the Financial Statements of the State Commission of Public Utilities of Tijuana for the period comprised between January 1st and December 31st, 2019. 11 Clause Eleventh of the Public-Private Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Consideration for the Services, pp. 40-46. 12 Opinion of the CEA. [Illegible signature][Illegible signature]5 [Seal that says AGENCY: STATE WATER COMMISSION OF BAJA CALIFORNIA.CEA – Comisión Estatal del Agua]SECTION: GENERAL DIRECTION OFFICIAL COMMUNICATION: DG/122/2020 The deficit in the CESPT mentioned in the previous paragraph impacts the CEA, the State Government and the users in the following manner: a.The deficit of CESPT would cause it to be unable to make full payment under the Water Purchase and Sale Agreement entered into with the CEA, causing the CEA in turn to not have sufficient resources for payment of the Consideration under this agreement. b.Upon the lack of sufficient resources for the payment of the Consideration, the exercise of the Current Account Credit that the CEA would contract with the guarantee of the Government of the State of Baja California, represented at the time by the Ministry of Planning and Finance (SPF), would be triggered c.Given that the Current Account Credit would affect the income and rights for the tax on remuneration for personal work in a necessary and sufficient percentage, the Government of the State of Baja California would have its income affected in the amount of resources necessary to cover the deficit of the Consideration, thus reducing the resources available for its investment or social spending programs. d.Given that the deficit would be maintained over time, this would generate strong pressure to increase user rates seeking to reduce said deficit. Amendment Agreement The Amendment Agreement amended the Total Cost of the System and consequently the Total Investment Amount and changed the original risk matrix of the Project by incorporating an acknowledgement of the variations in the exchange rate and interest rates, in addition to the updating mechanism for inflation originally foreseen, in accordance with the following13: a.It increased the total cost of the System for phase 1 from $5,254.48 million pesos to $6,099.80 million pesos Document Contents https://www.snl.com/Cache/IRCache/ca2f6df5c-512b-d524-d499-087ee152c1c3.html#tm2024078d1_ex10-1.htm[7/8/2020 10:13:51 AM] b.It reduced the total cost of the System for phase 2 from $3,271.26 million pesos to $2,624.58 million pesos 13 Clauses Fourth and Fifth of the Amendment Agreement to the Public-Private Partnership Agreement, dated June 1st, 2018, named Amendment to the APP Clauses; Clause Forty Sixth named total Cost of the System pp. 25-26. [Illegible signature][Illegible signature]6 [Seal that says AGENCY: STATE WATER COMMISSION OF BAJA CALIFORNIA.CEA – Comisión Estatal del Agua]SECTION: GENERAL DIRECTION OFFICIAL COMMUNICATION: DG/122/2020 c.It modified the amount of the Consideration in charge of the CEA and in favor of the Developer. d.It included a clause entitled: “Adjustment mechanism to recognize changes in financial conditions during the investment period”, which allows for an increase in the payment arising from the increase in the exchange rate in United States Dollars, in Euros and the increase in the interest rate. Economic Impacts of the Amendment Agreement The monthly consideration of $98.6 million pesos for the first phase was increased to $107.83 million pesos per month without considering the effects of exchange rate and interest rate adjustments14. Likewise, to place into context the amounts indicated in the previous paragraph, this Consideration of $107.83 million pesos represents 30% of the income of CESPT in 2019 and 219% of its operating result (income minus management expenses), which would imply generating an annual deficit for CESPT in the order of $704 million pesos.15 When calculating the effect of the “Adjustment mechanism to recognize changes in financial conditions during the investment period”16 incorporated into the APP Agreement through the Amendment Agreement, the Consideration for phase 1 including value added tax is estimated could increase from $107.83 million pesos to $125.50 million pesos per month.17 Again, to place in context the amounts indicated above, the Consideration for Phase 1 for $125.50 million pesos represents 44% of the income ofCESPT in 2019 and 296% of the operating result (income minus management expenses) which could generate an annual deficit for CESPT of $1,157 million pesos with the same affectation on the State of Baja California and the corresponding pressure for an increase in user rates.18 Options to cover the Deficit generated between the income and payment obligations in charge of the CEA and the CESPT The amount of the Consideration to be paid by the CEA and the CESPT under the APP Agreement were increased due to the AmendmentAgreement, which increased the amount of the investment and incorporated the change mechanism per increase of the exchange rate and interestrate, which means that the amount of such Consideration, from their origin, could generate a budget deficit for the CESPT that began at $593million pesos annually, but when incorporating the effects arising from the Amendment Agreement, could reach an amount of $1,157 million pesos annually, which should be covered by the contingent credit line as follows:19 14 Clause Fifth of the Amendment Agreement to the Public-Private Partnership Agreement, dated June 1st, 2018, named Amendment to the APP Clauses; Clause Eleventh.- Consideration for the Services. Sets an amount for total monthly consideration of $92,968,663, which amount, when adding the VAT, results in $107,843,649, p. 16. 15 Opinion of the CEA. 16 Clause Fifth of the Amendment Agreement to the Public-Private Partnership Agreement, dated June 1st, 2018, named Amendment to the APP Clauses; Clause Fourteenth named Adjustment Mechanisms to recognize changes in the financial conditions during the investment period pp. 17- 19. 17 Opinion of the CEA. 18 Ibidem. 19 Document Contents https://www.snl.com/Cache/IRCache/ca2f6df5c-512b-d524-d499-087ee152c1c3.html#tm2024078d1_ex10-1.htm[7/8/2020 10:13:51 AM] Ibidem [Illegible signature][Illegible signature]7 [Seal that says AGENCY: STATE WATER COMMISSION OF BAJA CALIFORNIA.CEA – Comisión Estatal del Agua]SECTION: GENERAL DIRECTION OFFICIAL COMMUNICATION: DG/122/2020 The deficit of the CESPT mentioned in the previous paragraph impacts the CEA, the State Government and the users as follows: a.The deficit of the CESPT would cause it to be unable to make full payment under the Water Purchase and Sale Agreement entered intowith the CEA, causing the CEA in turn to not have sufficient resources for payment of the Consideration under this agreement. b.Upon the lack of sufficient resources for the payment of the Consideration, the exercise of the Current Account Credit that the CEA wouldcontract with the guarantee of the Government of the State of Baja California, represented at the time by the Ministry of Planning and Finance (SPF), would be triggered. c.Given that the Current-Account Credit would affect the income and rights for the tax on remuneration for personal work in a necessaryand sufficient percentage, the Government of the State of Baja California would have its income affected in the amount of resourcesnecessary to cover the deficit of the Counterpart, thus reducing the resources available for its investment or social spending programs. d.Given that the deficit would be maintained over time, this would generate strong pressure to increase user rates seeking to reduce saiddeficit. This level of deficit would have to be covered through a combination of the following three sources: a.Reducing or eliminating future investments of the CESPT to the detriment of its service b.Use budget resources of the State Government of Baja California affecting the social or investment projects. c.Increase rates substantially affecting the economy of the population. Conclusion Based on the above founded and motivated, in case of continuing with the obligations foreseen in the APP Agreement, a negative impact on thefinances of the CEA, of the CESPT and in the finances of the State of Baja California and a strong pressure to carry out an increase in the currentrates would be created, thereby affecting the general interest. In other words, the Project contained in the APP Agreement: [Illegible signature][Illegible signature]8 [Seal that says AGENCY: STATE WATER COMMISSION OF BAJA CALIFORNIA. CEA – Comisión Estatal del Agua]SECTION: GENERAL DIRECTION OFFICIAL COMMUNICATION: DG/122/2020 a.Is not sustainable. b.Is not financially viable, nor sustainable for the CEA and the CESPT. c.Puts pressure on the increase in the amount of the rates to be paid by the users, affecting their economy. d.Negatively affects the general interest. Document Contents https://www.snl.com/Cache/IRCache/ca2f6df5c-512b-d524-d499-087ee152c1c3.html#tm2024078d1_ex10-1.htm[7/8/2020 10:13:51 AM] Notice of Early Termination of the APP Agreement for General Interest Reasons. In this context and given that it is the obligation of CEA to plan and coordinate the pertinent actions so that the population has sufficient hydraulic infrastructure through sustainable solutions, as established in article 1 of the Decree amending the Executive Decree creating the Decentralized Organism known as the State Water Commission, through which the State Water Service Commission is administratively and operationally incorporated into the State Water Commission20 and which must promote, at all times, its healthy development, a task that is made difficult by the financial unfeasibility of the APP Agreement, due to the complex situation described in this document; Therefore, pursuant to the terms of Articles 111 and 112 of the APP Law, 12321 of the Regulations to the APP Law, as well as the provisions of Clauses First22, Third23, Fourth24, Fifth25, Thirtieth section V, number 126, Thirty Third27 and Thirty Eighth28 of the APP Agreement, the company AGUAS DE ROSARITO S.A.P.I de C.V. is hereby notified, in its capacity as Developer under the APP Agreement, of the early termination of the APP Agreement for causes of general interest as of this date, and therefore said agreement ceases to have effects immediately. 20 Decree amending the Executive Decree creating the Decentralized Organism known as the State Water Commission by means of which the State Water Service Commission is administratively and Operationally integrated to the State Water Commission published in the Official Gazette of the State on January 27th, 2006, article First. Articles 1, 2, 4 and 12 of the Decree creating the State Water Commission of Baja California are amended to readas follows: Article 1.- The decentralized public body with its own legal personality and assets is created, called the State Water Commission of Baja California, which purpose will be to plan and coordinate the pertinent actions for the population to have sufficient hydraulic infrastructure, as well as to appoint, organize, and execute the water in block policy in the state, thus satisfying the demand for water services through sustainable solutions. 21 Cfr. Note 3. 22 Clause First of the Public-Private Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Subject Matter of the Agreement, contained in Clause Fifth of the Amendment Agreement to the Public-Private Partnership Agreement, dated June 1st, 2018, pp. 13-15. 23 Clause Third of the Public-Private Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Description of the Works of the Agreement, pp. 28-29. 24 Clause Fourth of the Public-Private Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Times for the Execution of the Agreement, pp. 29-33. 25 Clause Fifth of the Public-Private Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Realization of the Project and Financing of the Agreement, pp. 33-35. 26 Clause Thirtieth, Section V, Number 1 of the Public-Private Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Early Termination of the APP, Early Termination for reasons of general interest, pp. 71-72. 27 Clause Thirty Third of the Public-Private Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Early Termination for reasons of general interest or Justified Causes, pp. 81. 28 Clause Thirty Eighth of the Public-Private Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Notices, pp. 86-87. [Illegible signature][Illegible signature]9 [Seal that says AGENCY: STATE WATER COMMISSION OF BAJA CALIFORNIA.CEA – Comisión Estatal del Agua]SECTION: GENERAL DIRECTION OFFICIAL COMMUNICATION: DG/122/2020 Requirement to the Developer: In terms of the provisions of Clause Thirtieth, section V, number 1, items a), b) and c)29 respectively, the Developer is requested to, within the terms mentioned below: a.Begin the inventory of the assets that are currently comprise the Works of the Project referred to in paragraphs a) and b) of number 1 of Section V of Clause Thirtieth of the APP Agreement and proceed to its delivery to CEA within 90 (ninety) business days as from the date of delivery of this notice; b.For purposes of that mentioned in the immediately preceding paragraph, Mr. Juan Carlos Sandoval has been appointed as representative Document Contents https://www.snl.com/Cache/IRCache/ca2f6df5c-512b-d524-d499-087ee152c1c3.html#tm2024078d1_ex10-1.htm[7/8/2020 10:13:51 AM] of CEA. c.Submit to CEA the corresponding evidence, with the purpose of acknowledging and paying the non-recoverable expenses and those pending amortization made by the Developer in the Project. d.The reimbursement will be calculated in accordance with the APP Agreement. For purposes of carrying out the delivery of this notice in terms of the provisions of Clause Thirty Eighth of the APP Agreement30, I hereby inform you that this notice will be delivered to you by Mr. Alejandro Aguilera Martinez, in his capacity as legal representative of this State Water Commission of Baja California. Without further ado, saying goodbye to You. SINCERELY, [Illegible signature] MR. LUIS GRANADOS PACHECOGENERAL DIRECTOR AND LEGAL REPRESENTATIVEOF THE STATE WATER COMMISSION OF BAJA CALIFORNIAAS CONTRACTOR OF THE APP AGREEMENT. [Illegible signature] MR. RIGOBERTO LABORIN VALDEZGENERAL DIRECTOR OF THE STATE COMMISSION OF PUBLIC UTILITIES OF TIJUANA. 29 Cfr. Note 13. 30 Cfr. Note 5. [Illegible signature][Illegible signature]10 [Seal that says AGENCY: STATE WATER COMMISSION OF BAJA CALIFORNIA.CEA – Comisión Estatal del Agua]SECTION: GENERAL DIRECTION OFFICIAL COMMUNICATION: DG/122/2020 c.c.Members of the State Committee for Public-Private Partnership Projects. Present General Minister of the Government of Baja California.- Present. Minister of Finance of the State of Baja California.- Present Minister of Infrastructure, Urban Development and Territorial Reorganization of the State of Baja California.- Present Minister of Water of the State of Baja California. Present. Minister of Honesty and Public Function. Present. H. Board of Directors of CEA.- Present. Mr. Juan Carlos Saldoval in his capacity as representative of the State Water Commission of Baja California in terms of this official communication- present Project Supervision.- Present. Project Logbook.- Archive [Illegible signature][Illegible signature]11 (Back To Top) Exhibit D Baja California governor accuses big US companies of water theft Fidencio Carillo Gonzales has been living next to a canal that flows through Tijuana for six years and complains about its horrible smell. (Alejandro Tamayo / The San Diego Union-Tribune) At least 80 employees of the state water agency have been suspended or fired. By WENDY FRY JULY 4, 2020 6 AM BAJA CALIFORNIA — An independent audit of Baja California’s water agency alleges that former employees of the utility colluded with international corporations to defraud the state out of at least $49.4 million, according to an auditor and the governor of the state. Local and international corporations — including such well-known U.S. names as Coca- Cola, FedEx and Walmart — for years took water for use in their Mexican factories, retail stores and distribution centers without fully paying for it, Baja California officials have alleged. “These businesses have been systematically robbing the people,” said Baja California Governor Jaime Bonilla, who took office in November 2019. That corruption contributed to chronic under-funding of the state water agency, known as the Comisión Estatal de Servicios Públicos de Tijuana or CESPT, Bonilla said. To cover up the water theft, the auditor says, some companies also installed their own clandestine drainage systems to illegally discharge contaminated water into Tijuana’s already strained storm drains and canal. That water feeds into the Tijuana River, which flows through that Mexican city toward the San Diego coast. There it crosses the border into the United States, polluting the southernmost communities in San Diego County. More than 80 former employees of the water agency have been suspended or fired since the audit began, and nearly 450 companies are being investigated in the ongoing independent audit conducted by FisaMex, a Mexico-based accounting firm. In Colonia Lomas Taurinas trash and standing water in a storm drain that runs through the middle of the valley. This neighborhood is south of the Tijuana International Airport. Residents complain about the fowl smells in the area on June 30th, 2020 in Tijuana. The state is investigating as many as 400 companies for water theft and illegal dumping of sewage. Coca-Cola, Samsung, Hyundai and Home Depot are among a growing list of international and American companies the state of Baja California is investigating for alleged water theft and the illegal discharge of water sewage into the city’s crumbling drainage systems. (Alejandro Tamayo/The San Diego Union Tribune) In a written statement, Coca-Cola said its Baja California bottling plant obtains the water it uses in compliance with Mexico’s federal general water law, and the factory makes “responsible use of the resource, improving our processes to be more efficient and reduce its consumption.” Specifically, the Baja California plant said it processes 97 percent of its wastewater at its own wastewater treatment plant, and then returns it to the environment in compliance with federal law. The remaining 3 percent is discharged into the sewer system for which the company says it has discharge rights. None of the other companies responded to questions from the San Diego Union- Tribune. Some companies have responded to state investigators, saying they did not pay for water because they were not charged under the prior state administration. Bonilla doesn’t accept that explanation, pointing to measures he says some companies have taken to avoid being billed for their true water consumption, which were uncovered during the months-long audit. Bonilla has vowed to make the companies pay what they owe, so he can “clean-up the canal and stop spreading contaminated water to the beaches of Imperial Beach.” “That has to stop,” he said. According to Bonilla, the uncollected state funds could have been used to invest in maintenance and infrastructure to prevent at least some of the Tijuana sewage spills that have fouled San Diego shorelines and strained international relations. The Tijuana River runs through the city of Tijuana heading towards San Diego coast on June 30th, 2020 in Tijuana. The state is investigating as many as 400 companies for water theft and illegal dumping of sewage. Coca-Cola, Samsung, Hyundai and Home Depot are among a growing list of international and American companies the state of Baja California is investigating for alleged water theft and the illegal discharge of water sewage into the city’s crumbling drainage systems. (Alejandro Tamayo/The San Diego Union Tribune) Tens of millions of gallons of raw sewage and toxic sludge spill every year into the Tijuana River on the Baja California side, and then drain into Southern California’s lower ground, eventually emptying into the Pacific Ocean. In 2019, more than 2.3 billion gallons of wastewater and polluted runoff crossed the line, contaminating U.S. properties, beaches and wildlife habitats. The sewage has most impacted Imperial Beach, a small coastal city within the County of San Diego. In Colonia Chula Vista sewage water and trash flow in the storm drain on June 30th, 2020 in Tijuana. The state is investigating as many as 400 companies for water theft and illegal dumping of sewage. Coca-Cola, Samsung, Hyundai and Home Depot are among a growing list of international and American companies the state of Baja California is investigating for alleged water theft and the illegal discharge of water sewage into the city’s crumbling drainage systems. (Alejandro Tamayo/The San Diego Union Tribune) It’s a decades-old problem, recently featured on “60 Minutes.” The United States plans to invest $300 million in infrastructure to stop the sewage from flowing across the border, according to the legislative act governing the United States-Mexico-Canada Agreement. Imperial Beach Mayor Serge Dedina, a vocal critic of the cross-border sewage, said he was “shocked but not surprised” about the results of the Baja California audit. “We expected something like this was going on — but nothing at that scale,” said Dedina. “It all makes sense now — why the situation deteriorated so quickly and why they never seemed to be able to fix anything. Some of the most powerful, wealthy corporations in the world we now know contributed to our sewage crisis,” he added. Bonilla said he plans to do his part by ensuring companies operating in Baja California pay for the water they use, so the utility can start investing in maintenance to replace aging city pipes and upgrade Tijuana’s largest sewage treatment plant. Companies will be fined for illegal sewage discharges, he said. In Colonia Chula Vista sewage water and trash flow in the storm drain on June 30th, 2020 in Tijuana. The state is investigating as many as 400 companies for water theft and illegal dumping of sewage. Coca-Cola, Samsung, Hyundai and Home Depot are among a growing list of international and American companies the state of Baja California is investigating for alleged water theft and the illegal discharge of water sewage into the city’s crumbling drainage systems. (Alejandro Tamayo/The San Diego Union Tribune) “These are multi-million dollar, transnational corporations that are listed on the stock exchange,” said Bonilla. “And, in Tijuana, they steal water?” Coca-Cola, FedEx, Walmart, Samsung and Hyundai are among the more than 400 companies whose water and sewage use has been audited. Coca-Cola is accused of contracting with CESPT in 1992 to connect water to a parking lot located 150 meters from its bottling factory in Tijuana. Manuel Garcia, the Fisamex auditor, said the company then illegally connected the water services from the parking lot to its property across the street, where he says it employees hundreds of people. Since 1992, Coca-Cola has only been paying the same minimum monthly bill of five units of water for its entire factory, Garcia said, about the same amount of water used by one person living conservatively in a small home. Garcia said the company owes the CESPT about $1.1 million in unpaid water fees for the past five years, the maximum time frame the agency is allowed to collect. When he visited Coca-Cola’s property, Garcia said he discovered three hidden drainage pipes — two that were eight inches in diameter and one that was 12 inches. The professionally installed drainage pipes were never authorized by CESPT, he said, but they eventually connect to the Tijuana canal, which funnels sewage water toward the U.S. border. Coca-Cola released a statement in response to the allegations at Corporacion del Fuerte, the system’s bottler in Tijuana: “For more than 30 years operating in Baja California, hand in hand with Corporacion del Fuerte, we have been characterized by complying with the laws and obligations applicable to our processes, the satisfaction of our customers and consumers, and by supporting the community,” the statement read in part. “We reiterate our commitment and willingness to continue collaborating with the authorities in favor of the development of the area.” For one of Hyundai’s large auto-assembly factories along the border, auditors could not locate any water or sewer account on file with the Baja California water agency. Since 2012, the company has not paid the state for a single drop of water, state investigators said. “How is it a company like Hyundai, a transnational company, listed on the stock exchange, its profits being reviewed by its shareholders … How is it they come settle in Mexico without ever paying a water bill?” asked Bonilla. “Nothing is installed. There’s no meter, so they have volumes of water coming in, enjoying the free drainage and there’s absolutely no record of them at all at the water agency. Let’s see. It means, to do all that, they had to have been cooperating with the CESPT,” he said. Garcia said Hyundai owed $489,104 in unpaid water fees to the CESPT for the past five years. Bonilla said the director of a well-known hotel in Tijuana recently asked to meet with the governor to complain about the “injustice of the CESPT.” The hotelier explained he had already paid CESPT employees directly in April about a quarter of his bill to make his entire outstanding balance disappear, Bonilla said. A forensic analysis of the account showed the hotel’s approximately $178,000 debt had been deleted from the agency computers without any record of the payment to the CESPT employees, according to Bonilla and the auditor. The secretary of Baja California’s public integrity unit, Vicenta Espinoza Martínez, agreed it would have been difficult for no one at the CESPT to notice the discrepancies. “It caught our attention when reviewing the budgets,” said Espinoza Martínez. “When reviewing the accounts of large water consumers we saw we were actually spending more than we were bringing in — more than our income was ... and some accounts were being charged for very minimum consumption despite being very large companies ... to the point where it was illogical.” The new governor has vowed to collect what is owed or to cut off water to big companies, including Grupo Aeroportuario del Pacífico, the Mexican company that runs the Tijuana International Airport. In June, state officials cut off water at the airport, causing employees and passengers to complain about the smell of urine and concerns over the spread of coronavirus. Last Monday, CESTP officials turned the water back on after the company paid $1.5 million in back payments for water. Baja California state law says the company can only be charged for five years worth of discrepancies in unpaid water bills. Grupo Aeroportuario del Pacífico’s CEO Raúl Revuelta Musalem said in a statement on June 29 the company is “committed to the economic and social development of Mexico” and working with Baja California officials to building a “spirit of conciliation to jointly face adverse circumstances facing the country.” Bonilla, a former Otay Water District director, is a member of the ruling MORENA political party, a new leftist party founded by Mexico’s current president. In 2019, MORENA defeated the National Action Party or PAN, the political party that had nearly exclusively governed Baja California for 30 years between 1989 and 2019. “I’m from Tijuana. I’m from Baja California, and it hurts me a lot that these businesses come here and make a lot of money off the sweat of Baja Californians, but they don’t comply — at a minimum — with their basic obligations,” Bonilla said. He said he was equally upset with the water agency. “They cut off the water very rapidly for the woman who lives on the corner who owes 1,800 pesos ($79.37), but not for the giant corporation that hasn’t paid for water for 7 years ... " said Bonilla. Victor Manuel Vegas, 45, lives on the property adjacent to the illegal drainage ditch used by the airport in the Lomas Taurinas neighborhood. He’s been complaining about the smell since 1993. “When it is hot, it smells so bad; it’s unbearable. My kids can’t even live here with me because we’re worried about the contamination,” Vegas said. He’s seen chemicals, gasoline, oil and other hazardous material flowing through the creek. “My family is afraid to live here with me because of their illegal actions,” he said.   Exhibit E     Governor says Baja used water as a piggy bank. Critics worry about his bigger plan   An audit alleges utility employees colluded with companies to defraud the state out of millions of dollars in exchange for funding preferred candidates By WENDY FRY JULY 12, 2020 5 AM BAJA CALIFORNIA — Baja California’s new governor, Jaime Bonilla, says he is battling to clean up widespread corruption that for years ate away at the state’s water agency. Even Bonilla’s critics acknowledge the corruption and the failing water system, which results in frequent sewage spills that foul Tijuana and San Diego beaches. But those critics also allege the high-profile investigation, which has already led to 30 criminal complaints, is aimed at Bonilla’s political enemies. And they worry that it could be used to build up his own nest of public funds. Attorneys for some of the companies swept up in the audit, as well as independent political analysts, say they suspect that Bonilla’s investigative effort may help resurrect the controversial Playas de Rosarito facility, a $470 million seawater desalination project that stalled because of a lack of consensus about the licensing terms to a private company. It’s an allegation Bonilla strongly denies. “What they are doing is criminal. And they want to be the victims?” responded Bonilla, referring generally to the companies audited and their supporters. “They are dumping radioactive material into the channel. It has nothing to do with politics. We are doing the right thing.” Bonilla has been a key proponent of the desalination plant, strongly advocating for it on both sides of the border, but he says the stalled project has nothing to do with the audit. “It’s not even going to be built during my term,” he said. The governor insists his goal is to regulate the water utility so it can better address the sewage spills at the border and provide water and sewer services to all residents in Tijuana and Baja California. Rapid growth in the border state and over-dependence on the Rio Colorado-Tijuana aqueduct has led to water scarcity in the region’s coastal zones. In February, Bonilla pushed forward an independent audit of the Comisión Estatal de Servicios Públicos de Tijuana or CESPT, the agency responsible for supplying the city with water and sewer services and collecting payments. Results of the expanding audit, which has now turned into a criminal probe, allege employees of the utility colluded with local and international corporations to defraud the state out of millions of dollars in exchange for bribes and political funding for their preferred candidates. That’s money Bonilla says should have been used to invest in infrastructure. “No more free passes. They have to pay for the water they use — and not one penny more and not one penny less,” said Bonilla on Friday evening. “I don’t care if it’s Coca-Cola or Disney or Walmart. In Mexico, they’ve got to pay their bills.” Everyone who spoke to the San Diego Union-Tribune agreed that large companies in Baja California were given unfair breaks on their water bill — sometimes paying nothing — in exchange for political support of the prior administration under the National Action Party, or PAN. They emphasized that their concern is about Bonilla’s motivation for the audit, not the audit itself. Coca-Cola — the only company accused in the audit of water theft that has responded publicly — denied any wrongdoing, saying it treats its own water on site, as allowed under Mexican federal law. Independent political analyst Dr. Benedicto Ruíz Vargas, a writer and researcher who studies water issues and Baja California politics, said corruption within the water agency has been a well-known fact for decades. Water agency officials are accused of taking bribes to help big corporations conceal the amount of water they actually used, so those companies had lower bills. In one example, the Hyundai factory in north Tijuana, the company never paid anything for water or sewage services, according to auditors. In some extreme cases, the companies installed clandestine drainage systems to conceal their water usage and to dump toxic material into Tijuana drainage systems that flow toward the border and into Imperial Beach, state officials claim. The CESPT has long been regarded as an arm of the former ruling political party, Ruíz said. “It served to promote politicians,” said Ruíz. Bonilla’s staunchest critics belong to the PAN and its candidates are the strongest opponents of MORENA, the political party of both the governor and nation’s president. Ruíz said Bonilla’s efforts could be seen as trying to debilitate the PAN before the next election cycle . “This effort (the audit) has the principal intention of uncovering the network of corruption of the previous government,” said Ruíz, adding the damage in public perception could affect the PAN beyond just the 2021 election cycle. “I don’t think there’s any doubt the (water) agency needs to be cleaned-up, but if Bonilla who is the principal enemy of the PAN is the person to do it ...” Big-name companies like Coca-Cola, FedEx, Walmart, Samsung and Hyundai are among the now more than 833 companies statewide that have been implicated in the water agency’s billing irregularities and wide-ranging corruption scheme. So far, prosecutors have filed criminal complaints in Baja California accusing 129 current and former officials of the water agency of bribery and conflict of interest, the state’s Secretary of Honesty and Public Integrity Vincenta Espinoza said Wednesday. Officials have already collected $27.3 million of the $34.2 million they say the prior administration did not collect from companies and international corporations in Tijuana alone, she added. Administrative directors in the agency have received $50,000 payments to their bank accounts on the same day as the agency approved giant multi-use development projects without an opinion about how much water the development would use, which is a requirement for approval, Espinoza said. “Do you think that’s ethical for a company with 1,500 employees to receive a water bill for 300 pesos ($13), the same as what they would pay at home?” she asked. “It is not real or ethical to say that these are political issues. They say that politically we want to hit them, excuse us, but they are the politicians. There are more than 900 companies, so if there are three or four politicians who say we are attacking them, what about the other companies that are not in politics?” Real estate businessman David Saúl Guakil, the former campaign coordinator of former President Enrique Peña Nieto, is the owner of at least eight multi- housing buildings in Tijuana. Espinoza said clandestine pipes were installed on his properties to conceal the true amount of water used on the property. Guakil, who is eyeing a bid for mayor of Tijuana, has denied accusations of water theft. Some question whether Bonilla is trying to raise funds and awareness of the state’s water scarcity to secure financing for the desalination plant that was planned for Rosarito. If built, the giant reverse-osmosis facility would convert up to 100 million gallons of seawater a day. A portion of that water would be sold to the San Diego region, according to details of the financing scheme and Otay Water District documents — a point of great contention in Mexico. Jaime Martínez Veloz, the president of the Center of Studies for Northern Border Projects, said Bonilla negotiated the deal from both sides of the border, leaving doubt about whether Baja California would actually benefit. “There’s plenty of shortcomings in the sale and purchasing operations, but for me the seriousness of this — the biggest concern — is that a North American official designed and clarified ... details of a development with the final goal of selling water to San Diego,” said Martínez Veloz, referring to Bonilla. The governor responded that Martínez Veloz is “irrelevant in Baja California state politics.” Bonilla advocated for the desalination project when he served on the Otay Water District in Chula Vista, but he has since said publicly that the financing does not pencil out for Baja California. A spokesman for the CESPT confirmed several U.S. companies had filed claims against the agency about the retroactive charges, but the spokesman said he could not release copies of the claims to the San Diego Union-Tribune because they were in the possession of Fisamex, an outside company conducting the audit. As part of its contract with the state, Fisamex, a Sonora-based accounting firm, is collecting 20 percent of the funds recuperated during the audit — another major source of criticism about the investigation. Several residents on both sides of the border said they are not concerned about the governor’s motivations for conducting the audit, as long it results in better management of the sewage and water-delivery systems. “We just want the water cleaned up,” said Imperial Beach Mayor Serge Dedina, who has been a vocal critic of the cross-border sewage spills. “I couldn’t even begin to tell you what is happening or why. Our only focus is getting the border cleaned up — and what goes in within the bureaucratic or political fights in Mexico or Baja California is really beyond our purview.”   Water Desalination ReporT Volume 56, Number 26 The international weekly for desalination and advanced water treatment since 1965 13 July 2020 Mexico State government cancels Rosarito SWRO On 29 June, the State Water Commission of Baja California (CEA) advised Aguas de Rosarito (AdR), the special purpose vehicle created to deliver the Rosarito Seawater Desalination Plant, that it was terminating the contract for the plant that had been executed in August 2016. Although the state governor of Baja Norte held groundbreaking ceremonies over two years ago, the project has still not reached financial closure. Meanwhile, the water situation in the region remains • Forces state government to cover cost deficits, thus preventing spending on investment or social programs; • Negatively affects the general interest. The letter also asks AdR to inventory the project assets— including $24.2 million in property and right-of-way costs— to acknowledge pay for AdR’s non-recoverable expenses. As a consequence of the termination, CWCO and its partners will terminate the various agreements ancillary to the project. Tom Pankratz, Editor, P.O. Box 75064, Houston, Texas 77234-5064 USA Telephone: +1-281-857-6571, www.desalination.com/wdr, email: tp@globalwaterintel.com © 2020 Media Analytics. Published in cooperation with Global Water Intelligence. Singapore International Water Week Jun 1968 – Aqua-Chem commissions 7.5 MGD MSF at Rosarito; world’s largest seawater desal plant Jul 2005 – Binational Mexico-US SWRO project concept explored, cost estimated at $3.10/kgal ($0.82/m3) Mar 2010 – San Diego County feasibility study finds no ‘fatal flaws’ with 25 MGD Binational SWRO Jun 2010 – CWCO and Mexican partner create NSC Agua, start developing project Sep 2011 – CWCO contracts site for desal plant adjacent to CFE’s Rosarito power plant Feb 2012 – CWCO acquires control of NSC Agua, accelerates development of project Nov 2012 – CWCO leases property for intakes/discharge within CFE’s Rosarito power plant Nov 2012 – CWCO & Otay Water District (OWD) sign LOI to deliver up to 20 MGD across US border to OWD May 2013 – CWCO acquires 2nd parcel of property, for a combined 49-acres for Rosarito SWRO Nov 2013 – OWD applies for US Presidential permit for cross boarder pipeline to import water Aug 2014 – Baja Norte enacts new public-private partnership (APP) law Jan 2015 – Baja Norte accepts CWCO’s unsolicited proposal Feb 2015 – CWCO selects Suez as potential EPC partner Jun 2015 – Baja Norte declares project in public interest and says it should proceed under APP Law. Nov 2015 – Baja Norte issues RFP for 2X50 MGD Rosarito SWRO project under 40-yr DBOOT contract May 2016 – Of three bids, CWCO is top-ranked bidder by Baja Norte Aug 2016 – Baja Norte executes contract with Aguas de Rosarito (AdR), CWCO’s SPV Dec 2016 – Congress of State of Baja Norte authorizes the project’s 40 year financial guarantees May 2017 – US Presidential international pipeline permit granted to OWD Feb 2018 – Black Rock’s Mexican fund commits to acquiring 55% of AdR’s equity Mar 2018 – Still awaiting financial close and 2 permits, Baja Norte governor holds groundbreaking ceremony Jun 2018 – AdR and Suez sign EPC Agreement with option for Suez to become CWCO’s 20% equity partner Jun 2018 – Contract amended to include added scope, provisions to adjust interest & currency rates Dec 2018 – Project guarantee authorization expires at end of year; congressional approval extension required Mar 2019 – International Development Bank agrees to $200 million in project funding. Aug 2019 – State Congress re-establishes authorization for project guarantees until 31 Dec 2019 Dec 2019 – State Congress re-establishes authorization for project guarantees until 30 Jun 2020 Jun 2020 – Baja Norte terminates contract: “not financially feasible…due to changes in economic conditions” Rosarito Mexico SWRO Project Development Timeline as dire as ever. Between 2002 and 2010, several feasibility studies concluded that there was a need and an interest in a binational project that would serve customers on both sides of the US/Mexico border. When no public binational project was developed, Cayman- based Consolidated Water (CWCO) began privately developing the project. That project was a 100 MGD (378,500 m3/d) SWRO project built in two phases and co-located at CFE’s Rosarito Power Station, 12 miles (20km) south of Tijuana, which could deliver up to 20 MGD of water across the US border to the Otay Water District in San Diego County. When the project was publicly bid in 2016, CWCO’s winning tariff for the first phase of the project was $3.10/kgal ($0.82/m3), under a 40-year water purchase agreement. According to the state’s termination letter, the reasons for cancelling the project are: • Not financially feasible due to con- struction, operating and financing cost increases, and negative changes in interest and currency exchange rates; • Not sustainable for the government given its financial unfeasibility; • Increases pressure to raise water rates;“Baja Norte” refers to the Mexican state of Northern Baja California and its various agencies Exhibit G Reporta corporativo cancelación de planta desaladora en Baja California  Redacción/Adelante Valle  Jul 14, 2020 La Comisión Estatal del Agua de Baja California decidió cancelar el proyecto de la planta desaladora de Playas de Rosarito. Según indica un reporte de la empresa Consolidated Water, el pasado 29 de junio la agencia estatal notificó al corporativo de Islas Caimán sobre la cancelación del contrato que había sido ejecutado en agosto de 2016. “A pesar de que el Gobernador de Baja Norte (SIC) llevó a cabo ceremonias de inauguración hace más de dos años, el proyecto no había alcanzado el cierre financiero. “Mientras tanto la situación del agua en la región permanece más extrema que nunca”, indica el reporte emitido este lunes 13 de julio. Según el corporativo caribeño, el gobierno de Baja California sustentó su decisión debido a la inviabilidad financiera del proyecto, así como su costo de financiamiento y operación, cambios negativos de intereses y en el tipo de cambio. Además, el Gobierno de Baja California señaló la insustentabilidad del proyecto por su inviabilidad financiera y las presiones para aumentar las tarifas de agua, problemas de déficit del gobierno estatal para cubrir el proyecto, que evitaría el gasto en programas sociales. La carta enviada por la CEABC solicita evaluar el inventario de activos del proyecto, que incluye 24.2 millones de dólares en costos de propiedades y derechos de vía, para reconocer el pago a Aguas de Rosarito por los gastos no recuperables. La empresa, a través de su filial en México, Aguas de Rosarito, había realizado entre 2002 y 2010 estudios de factibilidad que llevaron a determinar la necesidad de proyectos binacionales que servirían a clientes tanto de Estados Unidos como de México. El ex Gobernador, Francisco, Vega, había negado rotundamente que el agua producida por la desaladora habría de tener como destino los Estados Unidos, lo cual señalaron grupos ambientalistas de Baja California. Debido a que ninguna empresa había desarrollado este proyecto, Consolidated Water (CWCO) empezó con la etapa de planeación de la planta. El proyecto habría generado unos 100 millones de galones a través de la construcción de dos fases que se ubicaría a un costado de la Estación Eléctrica de Rosarito. Una quinta parte de la producción de agua habría quedado en manos del Distrito de Aguas de Otay, al cual el gobernador Jaime Bonilla fue electo en años pasados. La planta, cuyo proceso fue lanzado de manera pública en 2016, fue otorgada a CWCO por un costo de 3.10 dólares por kilogalones con un contrato de 40 años.   Exhibit H https://burgeronreport.com Bonilla cancels desalination plant contract previously promoted By Leonardo Abad - July 15, 2020 https://burgeronreport.com The Baja California government terminated the contract for the desalination plant in Playas de Rosarito, which ex-governor Francisco Vega presented in 2018, when he laid the foundation stone for the work. Rubén Sánchez, director of the project, confirmed by telephone call the cancellation of the Public Private Association contract between the company Aguas de Rosarito and the state government. Aguas de Rosarito was created to develop and operate this project, and is a subsidiary of the publicly listed transnational Consolidated Water. In a June 29 statement, Consolidated Water said the Commission Baja California State Water Authority (CEA) decided the cancellation due to the financial infeasibility of the project, the cost of financing and operation, as well as the peso-dollar exchange rate. In the same document, CEA requests to evaluate an inventory of project assets, which includes $ 24.4 million in property costs and rights of way, which will have to be paid to Aguas de Rosarito for unrecoverable expenses. [19659002] The State Commission for Water in Baja California and Aguas de Rosarito SAPI de CV They signed the contract for the work, under the Public Private Partnership (APP) scheme in August 2016. The contract established that the state government would have to buy 173 million pesos a month of water, for the next 37 years, from According to the report “ The sides of the water “. The project of the desalination plant in Playas de Rosarito was surrounded by controversy from its beginning until its cancellation. Its project was to distribute water in Tijuana and Playas de Rosarito, but also sell to the United States through the Otay Water District. Mark Watton, former general manager of the Otay Water District in San Diego, California, confirmed that he was holding talks to buy Baja California water, from state administrations prior to that of the PAN Francisco Francisco, as revealed in the report “ The Plan of BC and Sonora to export water to the United States “. The current governor of Baja Califor girl, Jaime Bonilla Valdez was director of the Otay Water District, California, where he supported the project to buy desalinated water imported from Mexico. In a minute from the 2014 Water District, the support of the then federal deputy, Jaime Bonilla, and Héctor Mares Cossio, his deputy, was recorded for the contract between Consolidated Water and the Baja California government. In the document specifies that they would assist in a meeting with Governor Francisco Vega on October 10 of that same year. Exhibit I Cancelan construcción de desalinizadora en Baja California Recreación artística de la planta desalinizadora en Rosarito. (NSC Agua) By ALINE CORPUSAGENCIA REFORMA JULIO 15, 2020 6:40 AM La Comisión Estatal del Agua (CEA) de Baja California canceló el proyecto de la desaladora de Playas de Rosarito y le avisó al consorcio Aguas de Rosarito, informó Mark Robak, miembro de la Junta del Distrito de Agua de Otay, en California. “La CEA informó a Aguas de Rosarito, (consorcio) creado para entregar el agua desalada de mar, que se terminaba el contrato realizado desde agosto del 2016”, tuiteó el martes 14 el funcionario del organismo de agua. Robak mostró un documento en el que se exponen las causas de la cancelación, entre ellas que el proyecto no es financieramente factible debido a aumentos en los costos de construcción, operación y financiamiento. Así como cambios negativos en las tasas de interés y de cambio de divisas, y que había presión para aumentar las tarifas de agua. “Obliga al gobierno estatal a cubrir los déficits de costos, evitando así el gasto en inversión o programas sociales. Afecta negativamente el interés general”, dice una de las razones enumeradas. La carta también solicita a ADR que se haga un inventario de los activos del proyecto, incluidos 24.2 millones de dólares en propiedad y costos de derecho de paso. El Distrito de Agua de Otay, un proveedor público de agua, agua reciclada y servicio de alcantarillado en Estados Unidos, ubicado en la zona colindante con Tijuana, esperaba que México le vendiera el líquido, a través de la desaladora, por lo que tenía su propio comité de seguimiento. En una memoria de una reunión en diciembre de 2017, se expone que la junta del organismo debería esperar hasta 2020 para ver el curso del proyecto. “Después de las elecciones presidenciales del 2018 y las elecciones para gobernador del 2019", indica la minuta. Además se hace referencia a una tubería aprobada por el Gobierno de Estados Unidos en mayo de 2017 para la importación de agua. El pasado 2 de julio, el Secretario para el Manejo, Saneamiento y Protección al Agua del Estado, Salomón Faz Apodaca, informó en conferencia que el Gobierno de Baja California revisaría este mes si seguiría el proyecto de la planta desaladora. Apenas el 29 de marzo de 2019, el ex Gobernador panista Francisco Vega solicitó una actualización del presupuesto original para el proyecto, que se dio a conocer públicamente en 2015. El 7 de noviembre pasado, el actual Gobernador Jaime Bonilla, quien presidió el Distrito de Agua de Otay por varios años, expresó que el estado no podía pagar 158 millones de pesos mensuales. Grupo REFORMA solicitó entrevista con Faz Apodaca y el vocero de Aguas de Rosarito, quienes mencionaron que más tarde podrían hacer algún pronunciamiento.   Exhibit J    Planea Bonilla otra desalinizadora para BC; sería más pequeña Por Eduardo Jaramillo Castro 15, julio, 2020 3 minutos de lectura Tras la rescisión del contrato con Aguas de Rosarito para la construcción y operación de la planta desalinizadora, el gobierno aún desconoce cuánto deberá pagar por la cancelación, pero ya contempla crear otra de menor dimensión. El Secretario para el Manejo, Saneamiento y Protección del Agua de Baja California, Salomón Faz Apodaca, dijo que en unos dos años tendrían la definición de una planta desaladora más pequeña que el proyecto cancelado, para dar servicio por unos 15 años con holgura. En el contrato, el gobierno de Baja California tenía que asegurar el pago mensual de 173 millones de pesos durante 37 años de consumo de agua, pero ahora deberá subsanar los gastos por la recesión anticipada del contrato de Asociación Público Privada (APP). El Secretario Salomón Faz, dijo no tener un cálculo de cuánto costará la rescisión del contrato, que en este momento se está decidiendo de acuerdo a las inversiones de ambas partes y que se enmarca en el punto trigésimo del contrato. El proyecto de Aguas de Rosarito contemplaba producir 4.4 metros cúbicos de agua por segundo en la etapa más final, y en la primera etapa contemplaba producir 2.2 metros. El contrato firmado por el entonces gobernador Francisco Vega, fue anunciado como la planta desalinizadora más grande de latinoamérica. “Necesitamos una planta desaladora modular, que vaya creciendo y dando certidumbre de agua a la zona, pero de una manera más razonable y sin un costo para las finanzas del estado”, dijo Salomón Faz. El secretario dijo desconocer si en el nuevo proyecto para la construcción de una desalinizadora sería por medio de otra APP. Una opción sería aquella que ofrezca la entrega de agua desalinizada sin que el gobierno de Baja California deba invertir, solo garantizar la compra de agua a largo plazo. Dijo que buscarán un esquema donde el gobierno del estado no tenga que invertir, como contemplaba el contrato recientemente cancelado. Aseguró que Tijuana cuenta con abasto de agua suficiente para todos sus usos en los próximos 5 años. La razón de la suspensión del agua en ciertas zonas son por daños o mantenimiento en la infraestructura. Otra alternativa que contempla el estado consiste en activar 21 pozos que tienen permiso vigente para ser operados, y que se encuentran abandonados. “Estos pozos generarían 400 litros por segundo, que representan 5 años de agua para Tijuana, con un costo de inversión de 40 millones de pesos” agregó Faz. En junio 29, la empresa Consolidated Waters, propietaria de Aguas de Rosarito anunció la terminación del contrato, sin que hasta ahora el estado emitiera una posición. El gobierno de Baja California dio por terminado el contrato con Aguas de Rosarito por inviabilidad financiera del proyecto, el costo del financiamiento y operación, así como el tipo de cambio peso-dólar, de acuerdo a la trasnacional. Rubén Sánchez, director de la desarrolladora Aguas de Rosarito, confirmó las plácticas para llegar a un acuerdo, pero dijo que no podía emitir más comentarios antes de responder al gobierno del estado sobre el aviso de cancelación del contrato.   Exhibit K    Gobierno de BC reconoce nuevo proyecto  de desaladora para Tijuana      Por Armando Nieblas   RadarBC.com   Luego de cancelarse el contrato con la empresa ganadora de la licitación de la desaladora de  Playas de Rosarito, el Secretario para el Manejo, Saneamiento y Protección del Agua (SEPROA),  Salomón Faz Apodaca, reconoció que analizan un nuevo proyecto de desalación para la ciudad  de Tijuana, lo que deberá ocurrir en un plazo no mayor a 3 años.   El pasado 29 de junio la Comisión Estatal del Agua (CEA) en Baja California, notificó a  Consolidated Water la cancelación del proyecto de la desaladora en Playas de Rosarito, debido  a la inviabilidad financiera del mismo, así como su costo de financiamiento y operación.   Al respecto, el titular de la recién creada SEPROA explicó que desde el inicio de la presente  administración comenzaron con la revisión de ese proyecto, dándose cuenta que era  demasiado grande para las necesidades de la zona costa y además implicaba un fuerte impacto  a las finanzas del Estado.   Detalló que actualmente el Gobierno del Estado cuenta con pasivos de hasta 35 mil millones de  pesos, muy por arriba de lo reportado por la anterior administración, lo que compromete las  finanzas estatales y por consiguiente la posibilidad de continuar con ese proyecto.   “Era imposible de cumplir para las finanzas públicas del Estado y sobre todo considerando un  proyecto tan grande”, indicó.   Dijo que Tijuana podría tener una desaladora de hasta 1 metro cúbico, que le garantizaría el  abasto por los próximos 7 años.   Además explicó que la ciudad requiere 100 litros de agua por segundo cada año, adicional a lo  que está recibiendo, por lo que contar con una planta que genere mil litros, representaría un  abasto de hasta 10 años.   Salomón Faz Apodaca reconoció que cuentan con otros proyectos para garantizar el abasto de  agua en la zona costa del Estado, uno de ellos la rehabilitación de 21 pozos de la Comisión  Estatal de Servicios Públicos de Tijuana (CESPT), lo que permitiría extraer 400 litros de agua por  segundo, representando 4 años de abasto con una inversión de apenas 40 millones de pesos   Reconoció que la posibilidad de extraer agua de los pozos les permitirá ganar tiempo para llegar  al propósito final, que es la desalación.   “Vamos a terminar desalando forzosamente, el único tema es cuándo”, expresó.   Agregó que hasta ahora no hay una fecha específica para echar andar el nuevo proyecto de la  desaladora, pero debe ser no mayor a tres años, sobre todo porque hay muchas empresas  interesadas en participar, principalmente extranjeras.   Pero aclaró que el proceso de licitación del nuevo proyecto tendrá que ser transparente y  abierto, además que tendrá que socializarse, tal y como, se hará con el contrato de suministro  de energía eléctrica para el Acueducto Río Colorado‐Tijuana.   Al ser cuestionado sobre el costo económico que representará para el Estado la cancelación del  contrato con Aguas de Rosarito, explicó que será el área jurídica quien se encargue de revisar  las consecuencias económicas.   “Costaría más terminar el proyecto, serían 2 mil millones de pesos al año, por muchos años”,  puntualizó.   Por último, el Secretario para el Manejo, Saneamiento y Protección del Agua adelantó que el  proyecto de la desaladora Kenton en San Quintín también está siendo revisado, mientras tanto  sigue en proceso.    Exhibit L  Maya Srikrishnan July 20, 2020 The Latest in Baja’s Water Saga Critics say Baja California governor Jaime Bonilla’s investigation into widespread corruption at the state’s water agency is aimed at his political enemies, the San Diego Union-Tribune reports. They also worry that the investigation could be used to build up his own nest of public funds and could be used to resurrect the controversial $470 million desalination project in Playas de Rosarito. The current state of the desalination plant is … confusing. Last week, Reforma reports, the company spearheading the project disclosed that its contract had been canceled, said Mark Robak, a member of the Otay Water District, which has long backed the project in an effort to have its own independent water supply, separate from the San Diego County Water Authority. The project has indeed appeared to resurface in a new plan backed by Bonilla, though it would be smaller, Newsweek Mexico reports. For some background, the Border Hub for Investigative Journalism published an investigation last year detailing irregularities in the contracting process for both the Rosarito desalination plant and another one planned in Ensenada. The desalination plant has also been critiqued by San Diego water officials. They told us in 2017 they worried the project would siphon money from Tijuana’s already-strained sewer system, which has caused millions of gallons of sewage to cross north and frequently forces the closures of San Diego beaches.   STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: August 5, 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 the employees who continue to provide them with our 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 June potable water purchases were 2,846 acre-feet which is 6.0% above the budget of 2,685 acre-feet. The cumulative purchases through June were 27,577 acre-feet which is 2.4% below the cumulative budget of 28,256 acre-feet. At this time, staff is unable to decisively determine to what extent the volume deficit is attributable to AGENDA ITEM 10 2 COVID-19, rainfall of 14.7 inches is 43% above the average rainfall of 10.2 inches. The budgeted water purchases from CWA were based on an average of three years where rainfall was 10.2 inches. • Recycled Water Purchases – The June recycled water purchases from the City of San Diego and production at the District’s treatment facility were 412 acre-feet which is 9.9% below the budget of 457 acre-feet. The cumulative production and purchases through June were 3,315 acre-feet which is 9.9% below the cumulative budget of 3,681 acre-feet. Currently, staff is unable to determine to what extent the volume deficit is attributable to COVID-19, though rainfall of 14.7 inches is 43% above the average rainfall of 10.2 inches. • State Water Resources Control Board (Proposed Off-Ramp for Water Loss Performance Standards) – The State Water Resources Control Board (SWRCB) Off-Ramp Draft Proposal dated April 9, 2020, recommends that suppliers with low levels of real loss and reliable data be provided the option of an off-ramp to the regular compliance pathway of the regulation, which includes reducing real loss for most suppliers and submitting additional data for all suppliers. In the draft proposal, SWRCB program staff proposes that the volumetric threshold for the off-ramp, if adopted, be set at 10 gallons per connection per day for suppliers reporting in gallons per connection per day. In FY 2019, the District was at about 15.86 gallons per connection per day. It has been mentioned that the SWCRB did not want to include too many on the off-ramp as the state is concerned of the accuracy of their data. Staff will continue to monitor any changes to SWRCB recommendations and continue to work with CWA staff to provide comments to the state regarding the standards for water loss. ADMINISTRATIVE SERVICES: GIS: • ESRI (Geographic Information System) International User Conference – The annual ESRI Conference went virtual this year. There were over 80,000 real-time virtual attendants from around the world. Presentations included machine learning, deep learning, real-time Internet of Things (loT), and 3D modeling. Some new features can be used to improve the District’s efficiency. A new feature that staff will be evaluating is that of native 3D integration with Building Information Modeling (BIM). This feature will allow for a more accurate picture or planning of future District projects. Human Resources: • Workers’ Compensation – Staff implemented the new Workers’ Compensation Program with ACWA-JPIA to all Otay staff. The new 3 program has streamlined the process by providing online access and electronic completion of all workers’ compensation forms. • Benefits Pre-Renewal Meeting - Staff met with Alliant, the District’s benefits consultant, in preparation for the annual renewal and open enrollment benefits period that is held in October. The District is exploring options related to vision plans and changing Flexible Spending Account carriers. • Annual Performance Evaluations - Managers and Supervisors are completing the annual performance evaluations. • Recruitments/New Hires/Promotions: o The District is currently in the selection process for a Reclamation Plant Operator I/II/III and will be proceeding with the Utility Services Manager selection with an expected start date in the fall. o The District has a vacancy and is recruiting for an internal staff member to join the Hazardous Waste Operations and Emergency Response Confined Space Rescue (HAZWOPER) Team. IT Operations: • Enterprise Data Storage & Business Server Upgrade - Due to end-of- life storage and server equipment, staff finalized its review and selection of both vendor and hardware options in preparation for the replacement solutions. Solicitation was completed in June, with staff selecting the DellEMC hardware solution. Staff will be presenting a staff report for this purchase at the August F&A Committee, followed by a presentation to the Board in September. Pending Board final approval, staff anticipates beginning the project in late September 2020. Purchasing & Facilities: • Touchless Lighting Controls – To protect staff and the public who use District facilities, public/employee restrooms and District copy rooms have been outfitted with sensor controlled instant-on LED lighting. This and other no-touch solutions promote a healthier workplace by eliminating touch surfaces on which COVID-19, flu, and other seasonal viruses can spread. The sensors also provide long- term energy savings by turning off lights when rooms are unoccupied for a specified period. Safety & Security: • COVID-19: o The District’s Preparedness Plan & General Checklist was completed and posted on the intranet for employees to access. o The District’s quarterly drug and alcohol testing was successfully completed using both vendor and District safe protocols, protecting staff and maintaining social distancing. 4 o Monitoring the County’s activated Emergency Operations Center (for local water agencies and latest water information), and Cal/OSHA, County, State and CDC for updates. • Monthly WebEOC Exercise – The District completed the monthly exercise for July 2020, which consisted of “updating the District’s Mutual Aid Communications System directory, under the water hub section”. WebEOC is used as the primary means of communications during emergencies and the exercises are designed to maintain readiness of EOC staff. These monthly exercises continue to be successfully completed remotely until such time as it is safe to do so. • Commercial Drivers – Completed the distribution of the District’s updated “Department of Transportation (DOT) Drug & Alcohol Testing Policy” to all affected drivers. This included pertinent forms required to comply with the new 2020 DOT/FMCSA Clearinghouse requirements. • New Hire Safety Orientation – Updated safety information to include 12 general universal safety topics. • ACWA/JPIA Insurance – Completed the new insurance safety on- boarding process with the District’s insurance assigned risk controller. • Drone Vendor Policy – Completed drone vendor use policy and in process of creating/completing the corresponding electronic form for District property flight permission. AWIA 2018 – The District continues to work on the Emergency Response Plan (part 2 of 2 of the compliance requirements), in order to complete by the September 30, 2020, as required. 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. 5 Collections and Bad Debt Exposure # of Accounts $'s March 2020 (31 Days) April 2020 (30 Days) May 2020 (31 Days) June 2020 (30 Days) July 2020 (27 Days) March 2020 (31 Days) April 2020 (30 Days) May 2020 (31 Days) June 2020 (29 Days) July 2020 (27 Days) Lockable Accounts Owner 129 447 589 600 494 $ 25,715 $ 95,334 $ 196,864 $ 240,513 $ 204,792 Tenant 147 424 412 429 421 $ 22,785 $ 70,878 $ 116,506 $ 119,982 $ 135,404 Total 276 871 1,001 1,029 915 $ 48,500 $ 166,212 $ 313,370 $ 360,495 $ 340,196 Typical Monthly Values 200 400 600 800 975 Budgeted Sales $12,771,100 $21,342,600 $30,205,100 $37,401,819 Percent Increase 38% 118% 67% 29% -6% Percent of Bad Debt Exposure 1.30% 1.47% 1.19% 0.91% FY2020 FY2021 Total FY21 Data as of July 27, 2021 Waived Penalties $ 195,757 $ 50,213 $ 245,970 Lockable $'s From Recycled Accounts $ 687 $ 3,837 Amount from one account as of July 27, 2020. Amount is also included in the owner amount above. • Sewer 218 Hearing Notices & Water Rate Increase Notices – The mailing of sewer 218 hearing notices and water rate increase notices has begun. The mailing of notices began on July 16th and will be completed on August 18th. The changes to sewer rates and charges are subject to a 218 hearing which is scheduled for October 7, 2020. Subject to the results of the 218 hearing, the changes to sewer rates and rate structures would be effective January 1, 2021. The changes to water rates are not subject to a 218 hearing and will be effective January 1, 2021. As of July 23rd, the District has received three calls from customers regarding the notices. Two callers requested clarification and one call was critical of the water rate increase. • FY 2021 Budget Book – Staff is preparing the FY 2021 Budget book for submission to the CSMFO and GFOA award programs. Staff plans to have the book completed by September 30, 2020. • FEMA – Staff is continuing to work with FEMA representatives to determine eligible expenses for reimbursement. Recently, CalOES representatives recommended that agencies begin entering actual incurred expenses along with the supporting documentation into the FEMA Grants Portal to avoid a waterfall of requests in December. Staff completed and uploaded the FEMA forms and expense reports for the months of February, March, April, and May into the FEMA Grants Portal. As each fiscal period is closed, staff will repeat this process until the Federal Government declares the incident period 6 has ended. At which time, all the accumulated expenses and forms are formally submitted to FEMA for reimbursement. • Federal Employer Payroll Tax Credits – Organizations and businesses that have been impacted by COVID-19 may qualify for payroll tax credits. Staff reviewed qualifying payroll activities and requested a credit of $1,000 for the quarter ending June 30, 2020. • Property and Liability Insurance Update – Insurance coverage with ACWA-JPIA has officially started as of July 1st. Finance staff completed the claims procedure review with the JPIA staff and are now ready to manage claims under the JPIA. There are three outstanding open claims with SDRMA; two claims are for reimbursements to the District and the third claim is under review with SDRMA. • FY 20 Audit - Staff is working on reviewing all financial transactions to ensure they are properly recorded in the correct fiscal year. Account reconciliations have started, this includes Debt Schedules, Fixed Asset Accounts, Investment and Bank Balances, Accounts Payable, Customer Billings, etc. The timing of the audit is on track with a final presentation to the Board in November. Financial Reporting: • The financial reporting for June 30, 2020 is as follows: For the twelfth month ending June 30, 2020, there are total revenues of $103,868,748 and total expenses of $104,915,223. The expenses exceeded revenues by $1,046,475. The YTD expenses exceeded YTD revenues as of June 30th due primarily to actual sales volumes being less than budget. In addition to sales volumes, the 770 AF of potable water that was used to supplement the recycled system between February and June had an adverse impact of $448,000. The supplement was due to the City of San Diego’s recycled water plant being down. While not guaranteed by the terms of the recycled water purchase agreement with the City of San Diego, staff will be requesting a credit for the supplemented 770 AF which would reduce the contractual volumes for calendar year 2020. • The financial reporting for investments for June 30, 2020 is as follows: The market value shown in the Portfolio Summary and in the Investment Portfolio Details as of June 30, 2020 total $77,506,173 with an average yield to maturity of 1.258%. The total earnings year-to-date are $1,340,066. 7 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). In June and July 2020, Pacific Hydrotech, the Station’s contractor, worked on initiating the Station’s seven-day operational testing. The seven-day operational testing began during the week of June 29, 2020. Currently, the Pump Station is in the testing phase and in full operation under SCADA control. The Station has experienced some operational issues that are being worked through to finalize the 7-day testing. Environmental monitoring for the construction project is complete and the final environmental compliance reports have been sent to the regulatory agencies (US Fish & Wildlife Service, CA Dept. of Fish & Wildlife, Regional Water Quality Control Board, Army Corps of Engineers). A final change order is anticipated in the amount of approximately $60K. The project is within budget and the construction contract has reached substantial completion. (P2083 & P2562) • Campo Road Sewer Replacement: The existing sanitary sewer from Avocado Road to Singer Lane was undersized and located in environmentally sensitive areas that are difficult to access. The Campo Road Sewer Replacement project installed approximately 7,420 linear feet of new 15-inch gravity sewer pipe and includes abandonment of the existing sewer main. During the month of June 2020, Wier Construction completed manhole repairs, punch list items, and acquired necessary releases from impacted customers. The project is within budget, the contract has been accepted, and the Notice of Completion has been processed. (S2024) • Vista Vereda and Hidden Mesa Water Pipelines Replacement: The existing 1950’s steel water line along Vista Vereda between Vista Grande Road and Hidden Mesa Trail in the Hillsdale area has experienced leaks and is nearing the end of its useful life. The existing water main is located primarily within easements, many of which have had significant improvements performed over the years since the water line was constructed. This project replaced the existing water lines with new water lines in both Vista Vereda and Hidden Mesa Road. During April and May 2020, Cass Arietta Construction, Inc., the District’s construction contractor, worked on completing punch list items required for contract acceptance. The restoration work is complete and releases from the private properties were received in June 2020. This project is within budget, the contract has been accepted, and the Notice of Completion has been processed. (P2574 & P2625) 8 • Temporary Lower Otay Pump Station Redundancy: This project will add a second pump to the District’s existing Temporary Lower Otay Pump Station (TLOPS) to provide redundancy. The District’s contractor, Tharsos, moved the District’s pre-purchased trailer, which had been stored in the Operations employee parking lot, to the project site on May 18, 2020. Tharsos set the trailer and installed staircases and platforms around the trailer in preparation for steel piping delivery scheduled for August 2020. Tharsos’s construction contract also includes mechanical, electrical, and instrumentation & control. The redundant trailer vendor (Hawthorne) reassembled exhaust components on the roof of the trailer during the month of June 2020. Project completion is in October 2020. The project is within budget. COVID-19 IMPACTS: The project has experienced delays associated with pipe fabrication. Tharsos will meet with the pipe manufacturer to determine if an expedited delivery of the pipe is possible. (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 is working with Cortech and PremierFlow to resolve construction issues. This project is within budget. COVID-19 IMPACTS: The project has experienced delays associated with pump skid and trailer fabrication. (P2640) • 1200 Pressure Zone Improvements: The first phase of this project consists of connections for a Portable Trailer Mounted VFD Trailer Pump (P2640) at the 1200-1 Pump Station/978-1 Reservoir site in support of the 1200-1 Reservoir Interior & Exterior Coating Project (CIP P2533) starting late fall next year. The first phase also includes demolition of an existing vault and widening of an existing driveway to provide access and a location to operate the trailer pump. The District’s contractor, Piperin, completed the work in their construction contract including punch list items in July 2020. Recommendation for acceptance was received July 22, 2020, the contract has been accepted, and the Notice of Completion has been processed. This project is within budget. COVID-19 IMPACTS: This project experienced delays to address customer concerns regarding tie-in impacts. Additional costs, that included tie-in work to be performed at night and scheduled separately instead of concurrently to mitigate service impacts to customers, was approved as Change Order No. 2 in the amount of $5,453. The District will seek FEMA reimbursement associated with these additional costs. (P2653) 9 • 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. The contractor, LB Civil Construction (LB Civil), has installed approximately 1,000 linear feet of new PVC waterline in Birch St., Kempton St., and Coronado Ave. LB Civil continues to complete the installation in Coronado Ave. and will then move to Date St. Outreach notifications have been sent out to the neighboring residents. The project is on schedule. 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) • 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 project construction has progressed and was completed in July 2020. (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 project was publicly advertised for construction bid on May 21, 2020 and electronic bids were publicly opened by live Zoom video conference on June 11, 2020. Staff worked with the District’s General Counsel to implement an electronic bidding process for the duration of the COVID-19 pandemic given the limitations in place by the pandemic. Award of the construction contract is on track for the August Board Meeting. 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 project was publicly advertised for construction bid on May 28, 2020. Bids were opened on June 23, 2020 via live video feed similar to the Otay Mesa Pipeline Cathodic Protection Improvements. Award of the 10 construction contract is on track for the August Board Meeting. 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. The project was publicly advertised for Letters of Interest (LOI) and Statement of Qualifications (SOQ) to provide professional engineering services on May 13, 2020. LOI/SOQs were received from nine (9) prime civil engineering firms on May 27, 2020. Six (6) proposals were received and reviewed. Award of the professional engineering services agreement is anticipated for the September Board Meeting. This project is within budget. (P2639) • 1090-1 Pump Station Renovation: This project includes renovation of the existing Pump Station, including pump replacement and addition of a third pump, which serves the small 1090 Pressure Zone, containing approximately thirty-three (33) potable water meters and seven (7) hydrants. Design is being prepared using as- needed electrical design services and in-house engineering and drafting personnel. The project is at 90% design status and is scheduled to be advertised for construction bids in August 2020 with award of the contract anticipated at the November 2020 Board meeting. This project is within budget. (P2174) • 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. This project was advertised on June 16, 2020, and bids were opened on July 9, 2020 via live video feed. Six (6) bids were received and Capital Industrial Coatings submitted the lowest bid. The 850-1 Reservoir was bid last year along with the Recycled Water Tank. At that time, the District received only two (2) bids, and staff thought the bid prices were extremely high. Staff recommended to reject all bids and rebid the project the following year. The bid price for the 850-1 Reservoir last year was $820,200, compared to this year’s Capital Industrial Coatings bid price of $695,440 or $124,760 less. Staff is reviewing the bid documents to verify all requirements are met. This item is scheduled to be presented to the August Committee and September Board to award a construction contract. (P2543 & P2533) • 13565 Vista Sage Lane Tree Encroachment: In October 2019, the District cut down a 24” diameter eucalyptus tree that in good faith believed was growing over a District waterline and encroaching on a 11 District easement. Subsequently, the District concluded that the eucalyptus tree did not encroach on the District’s easement. The District settled with the homeowners (Mr. & Mrs. DeVercelly) in the amount of $13,000. Staff reviewed and updated internal procedures and processes to ensure that this type of situation would not be repeated. • FY 2020 Sewage Flows to Metro vs Planned Capacity: • For the month of June 2020, the District sold 19 meters (75 EDUs), generating $530,611 in revenue. Projection for this period was 51.3 meters (61 EDUs), with budgeted revenue of $536,772. Total revenue for Fiscal Year 2020 is $5,352,899 against the annual budget of $6,441,264. Summary Table below: Date Meters Sold (Budgeted) Meters Sold (Actual) EDUs Sold (Budgeted) EDUs Sold (Actual) Total $ Collected (Budgeted) Total $ Collected (Actual) May 2020 51 35 61 48 $536,772 $340,845 7/1/19 thru 5/31/20 564 287 671 571 $5,904,492 $4,822,288 7/1/19 thru 6/30/20 615 306 732 646 $6,441,264 $5,352,899 12 Water System Operations (reporting for June): • On Thursday, June 4th, staff performed a planned shutdown on the suction side of the 1200 Pump Station to isolate the existing piping at the 1200 Pressure Zone Pump Station so that new piping, valves, and tee can be installed. This piping is to accommodate a future above-ground trailer mounted pump. No customers were affected during this shutdown. • On Friday, June 5th, staff performed an unplanned emergency shutdown at 10670 Villa Bonita in Spring Valley to replace a poly service lateral line. There were 32 customers affected from 9:00 AM to 11:30 AM and water trailers were available on site. • On Monday, June 8th, staff assisted the Inspection Section to isolate two valves on Kempton Street in Spring Valley for the County of San Diego Storm Drain Project. One customer was high lined. Staff anticipates this project will be completed by the first week of August. • The following events occurred on Thursday, June 11th: o Layfield concluded the cleaning of four potable floating cover reservoirs. o Utility Maintenance staff assisted Helix Water District for six hours with a service repair at 6942 University Avenue in La Mesa. • On Friday, June 12th, staff checked a potential leak on Worthington Street and Park Drive in La Presa per the County of San Diego’s request. Additional leak detection was performed on Monday, June 15th and staff determined that it was potentially ground water/irrigation run-off (no chlorine was present and 3300 PPM TDS). The Water Systems Supervisor notified the County of the findings. • The following events occurred on Tuesday, June 16th: o The District received a request to deliver 420.3 AF to Mexico in September 2020 and the District has the capacity to fulfill this request. o The District’s operational plans for the new 870-2 and 803-4 Disinfection sites were approved by the State Water Resources Control Board (SWRCB). • On Wednesday, June 17th, staff performed a planned shutdown on the discharge side of the 1200-1 Pump Station to accommodate for future tie-ins for the Variable Frequency Drive (VFD) trailer in preparation of the 1200-1 Reservoir recoating work. There were five customers affected from 9:00 PM to 1:30 AM on Thursday, June 18th and a water trailer was available. 13 • On Monday, June 22nd, Utility Maintenance staff provided Vactor assistance for four hours to Helix Water District for a service repair at the intersection of Grove Road and Crystal Lane in El Cajon. • On Monday, June 29th, staff assisted the Inspection Section with a shutdown for a CIP project on Coronado Avenue in La Presa, as part of the Dictionary Hill water line replacement. No customers were affected since they were previously high lined by the contractor. Purchases and Change Orders: • The following table summarizes purchases and Change Orders issued during the period from June 18 through July 21, 2020, that were within staff’s signatory authority: Date Action Amount Contractor/ Consultant Project 06/18/2020 P.O. $19,785.92 GE DIGITAL, LLC SCADA SOFTWARE ANNUAL LICENSE RENEWAL 06/22/2020 P.O. $60,000.00 AZTECA SYSTEMS, LLC CITYWORKS ANNUAL LICENSES & SUPPORT RENEWAL 06/22/2020 P.O. $11,225.00 WESTCOAST ROOF CONSULTING ROOFING CONSULTING SERVICES 06/30/2020 P.O. $48,892.38 WATCHLIGHT CORPORATION CDMA SUNSET-LTE CONVERSION - BACKUP BATTERY UPGRADE 07/01/2020 P.O. $1,255.89 CB PACIFIC, INC. SOFTWARE ANNUAL SUPPORT RENEWAL 07/01/2020 P.O. $28,329.25 INNOVYZE, INC MODELING SOFTWARE ANNUAL MAINTENANCE & SUPPORT 07/01/2020 P.O. $4,016.80 GHA TECHNOLOGIES, INC. VERITAS DATA BACKUP ANNUAL LICENSE & SUPPORT 07/01/2020 P.O. $11,187.00 DLT SOLUTIONS LLC AUTODESK SOFTWARE ANNUAL LICENSE SUBSCRIPTION 14 07/01/2020 P.O. $9,100.00 PINNACLE BUSINESS SOLUTIONS VEEAM BACKUP DATA MANAGEMENT ANNUAL LICENSE RENEWAL 07/01/2020 P.O. $4,575.00 NTH GENERATION COMPUTING, INC. SECUREAUTH (DUAL AUTHENTICATION) ANNUAL RENEWAL 07/02/2020 P.O. $27,130.37 PACIFIC PIPELINE SUPPLY 14-INCH RWCWRF EFFLUENT FORCE MAIN (R2156) 07/06/2020 C.O. ($1,385.00) PIPERIN CORP. 1200 PRESSURE ZONE IMPROVEMENTS (P2653) 07/13/2020 P.O. $13,824.00 1903 SOLUTIONS LLC CYBERSECURITY & ANTI-VIRUS ANNUAL SOFTWARE RENEWAL 07/14/2020 P.O. $135,583.56 TYLER TECHNOLOGIES INC. FINANCIAL MANAGEMENT ERP SOFTWARE ANNUAL MAINTENANCE & SUPPORT 07/14/2020 P.O. $8,240.00 BIDSYNC ONLINE SOLICITATION ANNUAL SOFTWARE LICENSE 07/15/2020 P.O. $9,159.83 ADVANCED INFRASTRUCTURE TECHNOLOGIES RADIODETECTION LOCATOR RECEIVER (SURVEY) 07/15/2020 C.O. ($10,572.54) KAY CONSTRUCTION HIDDEN MOUNTAIN SPS WET WELL (S2070) 07/21/2020 P.O. $683.01 MALLORY SAFETY & SUPPLY, INC. 803-4 RESERVOIR WATER QUALITY IMPROVEMENTS (P2626) 15 Water Conservation and Sales: • Water Conservation – June 2020 usage was 1% higher than June 2013 usage. Since June 2019, customers have saved an average of 13% over 2013 levels. The June potable water purchases were 2,846 acre-feet which is 6.0% above the budget of 2,685 acre-feet. The cumulative purchases through June were 27,577 acre-feet which is 2.4% below the cumulative budget of 28,256 acre-feet. 16 • The June recycled water purchases and production were 412 acre-feet which is 9.9% below the budget of 457 acre-feet. The cumulative production and purchases through June were 3,315 acre-feet which is 9.9% below the cumulative budget of 3,681 acre-feet. Potable, Recycled, and Sewer (Reporting up to the month of June: • Total number of potable water meters: 51,106. • Total number of sewer connections: 4,740. • Recycled water consumption for the month of June: o Total consumption: 420.2 acre-feet or 136,863,056 gallons. o Average daily consumption: 4,562,102 gallons per day. o Total cumulative recycled water consumption since June 1, 2019: 3,333 acre-feet. o Total number of recycled water meters: 738. • Wastewater flows for the month of June: o Total basin flow: 1,649,300 gallons per day. ▪ This is an increase of 1.02 percent from June 2019. o Spring Valley Sanitation District flow to Metro: 547,155 gallons per day. 17 o Total Otay flow: 1,102,167 gallons per day. o Flow processed at the Ralph W. Chapman Water Recycling Facility: 196,600 gallons per day. o Flow to Metro from Otay Water District: 905,533 gallons per day. o By the end of June there were 6,752 wastewater EDUs. Exhibit A Annual YTD Budget Actual Budget Variance Var % REVENUES: 4110 Potable Water Sales 52,353,600$ 50,081,739$ 52,353,600$ (2,271,861)$ (4.3%) 31-4118 Recycled Water Sales 9,816,800 8,953,481 9,816,800 (863,319) (8.8%) 4140 Potable Energy Charges 2,366,100 2,276,779 2,366,100 (89,321) (3.8%) 4120 Potable System Charges 16,078,600 16,205,007 16,078,600 126,407 0.8% 4150 Potable MWD & CWA Fixed Charges 12,258,800 12,305,712 12,258,800 46,912 0.4% 4310 Potable Penalties 894,400 612,381 894,400 (282,019) (31.5%) Total Water Sales 93,768,300 90,435,099 93,768,300 (3,333,201) (3.6%) 4210 Sewer Charges 2,890,000 2,892,883 2,890,000 2,883 0.1% 4133 Meter Fees 229,400 166,249 229,400 (63,151) (27.5%) 4136 Capacity Fee Revenues 1,868,900 2,250,845 1,868,900 381,945 20.4% 4414 Non-Operating Revenues 2,065,900 2,781,263 2,065,900 715,363 34.6% 4621 Tax Revenues 4,615,900 4,919,583 4,615,900 303,683 6.6% 4512 Interest 367,900 422,826 367,900 54,926 14.9% Total Revenues 105,806,300$ 103,868,748$ 105,806,300$ (1,937,552)$ (1.8%) EXPENSES: 5511 Potable Water Purchases 37,282,800$ 37,309,468$ 37,282,800$ (26,668)$ (0.1%) 5515 Recycled Water Purchases 4,058,400 4,058,400 4,058,400 - 0.0% 5523 CWA-Infrastructure Access Charge 2,380,800 2,380,782 2,380,800 18 0.0% 5521 CWA-Customer Service Charge 1,659,600 1,659,013 1,659,600 587 0.0% 5524 CWA-Reliability Charge 2,377,200 2,377,331 2,377,200 (131) (0.0%) 5522 CWA-Emergency Storage Charge 4,579,800 4,580,016 4,579,800 (216) (0.0%) 5531 MWD-Capacity Res Charge 606,600 606,271 606,600 329 0.1% 5532 MWD-Readiness to Serve Charge 870,000 791,452 870,000 78,548 9.0% Subtotal Water Purchases 53,815,200 53,762,733 53,815,200 52,467 0.1% 5411 Power Charges 3,184,700 3,070,980 3,184,700 113,720 3.6% Payroll & Related Costs 21,157,700 20,944,908 21,157,700 212,792 1.0% Material & Maintenance 3,834,100 3,363,794 3,834,100 470,306 12.3% Administrative Expenses 5,713,800 5,565,155 5,713,800 148,645 2.6% 5251 Legal Fees 620,000 726,853 620,000 (106,853) (17.2%) Expansion Reserve 4,927,300 4,927,300 4,927,300 - 0.0% Replacement Reserve 7,513,000 7,513,000 7,513,000 - 0.0% OPEB Trust 1,038,100 1,038,100 1,038,100 - 0.0% General Fund Reserve 954,400 954,400 954,400 - 0.0% Total Expenses 105,806,300$ 104,915,223$ 105,806,300$ 891,077$ 0.8% EXCESS REVENUES(EXPENSE) -$ (1,046,475)$ -$ (1,046,475)$ OTAY WATER DISTRICT COMPARATIVE BUDGET SUMMARY FOR THE TWELVE MONTHS ENDED JUNE 30, 2020 F:/MORPT/FS2020-0620.xlsx 7/22/2020 3:34 PM COMPARATIVE BUDGET SUMMARY NET REVENUES AND EXPENSES FOR THE TWELVE MONTHS ENDED JUNE 30, 2020 -$1,300,000 -$1,100,000 -$900,000 -$700,000 -$500,000 -$300,000 -$100,000 $100,000 $300,000 $500,000 $700,000 $900,000 $1,100,000 $1,300,000 $1,500,000 $1,700,000 $1,900,000 $2,100,000 $2,300,000 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 June show a negative variance of ($1,046,475) OTAY WATER DISTRICT INVESTMENT PORTFOLIO REVIEW June 30. 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 June 10, 2020. The Committee anticipates maintaining the target range of 0-0.25% until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals. The Committee will continue to oversee the effects of incoming information for the economic outlook, including information related to public health, global developments, and muted inflation pressures, and will use its tools and act as appropriate to support the economy. 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 will assess realized and expected economic conditions relative to its maximum employment objective and its symmetric 2 percent inflation objective. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments.” The District’s effective rate of return for the month of June 2020 was 1.19%, which was twelve 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 1.22% for the month of June 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: June 30. 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 $59.90 Million 8.02: Local Agency Investment Fund (Bonds) 100% 100% $ 5.53 Million 8.03: Federal Agency Issues 100% 100% $ 3.69 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% 6.60% 12.0: Maximum Single Financial Institution 100% 50% 3.71% July FY19 Aug FY19 Sep FY19 1st Qtr FY19 Oct FY19 Nov FY19 Dec FY19 2nd Qtr FY19 Jan FY19 Feb FY19 Mar FY19 3rd Qtr FY19 Apr FY19 May FY19 June FY19 4th Qtr FY19 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 LAIF 1.94 2.00 2.06 2.00 2.14 2.21 2.29 2.21 2.36 2.39 2.44 2.39 2.45 2.45 2.43 2.44 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 Otay 1.46 1.34 1.39 1.41 1.39 1.67 1.71 1.59 1.80 1.86 1.79 1.82 1.81 1.82 1.89 1.84 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 Difference -0.48 -0.66 -0.67 -0.59 -0.75 -0.54 -0.58 -0.62 -0.56 -0.53 -0.65 -0.58 -0.64 -0.63 -0.54 -0.60 -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 -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-20 Return on Investment LAIF Otay Difference Target: Meet or Exceed 100% of LAIF $2,861,665 3.71% $70,516,213 91.50% $3,688,466 4.79% Otay Water District Investment Portfolio: 06/30/2020 Banks (Passbook/Checking/CD)Pools (LAIF & County)Agencies & Corporate Notes Total Cash and Investments: $77,066,344 (Book Value) 7/22/2020 YTM360 Page 1 Par Value Book Value MaturityDateStatedRateMarket Value June 30, 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 1,015,591.30 09/10/20212.37509/05/2019 1,029,924.00313378JP7 436 1.454Federal Home Loan Bank2385 2,645,000.00 2,672,874.62 09/10/20212.37509/05/2019 2,710,596.00313378JP7 436 3,688,465.923,740,520.003,650,000.003,689,766.05Subtotal and Average 1.454 436 BOND PROCEEDS (LAIF) 1.200STATE OF CALIFORNIA9015 5,529,552.73 5,529,552.73 1.2175,556,718.29LAIF 2018 1 5,529,552.735,556,718.295,529,552.735,536,286.06Subtotal and Average 1.200 1 Local Agency Investment Fund (LAIF) 1.200STATE OF CALIFORNIA9001 59,898,003.35 59,898,003.35 1.21760,192,269.96LAIF 1 59,898,003.3560,192,269.9659,898,003.3560,791,336.68Subtotal and Average 1.200 1 San Diego County Pool 1.607San Diego County9007 5,088,657.46 5,088,657.46 1.6295,155,000.00SD COUNTY POOL 1 5,088,657.465,155,000.005,088,657.461,567,890.07Subtotal and Average 1.607 1 76,077,870.10 74,166,213.54 1.241 2374,644,508.25 74,204,679.46Total and Average Portfolio OTAY NL! APData Updated: SET_ME8: 07/21/2020 16:01 Run Date: 07/21/2020 - 16:01 PM (PRF_PM2) 7.3.0 Report Ver. 7.3.5 YTM360 Page 2 Par Value Book Value StatedRateMarket Value June 30, 2020 Portfolio Details - Cash AverageBalanceIssuer Portfolio Management Month End Days toMaturityS&PCUSIPInvestment #PurchaseDate Union Bank 0.010STATE OF CALIFORNIA9002 1,000,008.87 1,000,008.87 0.01007/01/2019 1,000,008.87UNION MONEY 1 0.000STATE OF CALIFORNIA9003 2,950.00 2,950.002,950.00PETTY CASH 1 0.444STATE OF CALIFORNIA9004 1,567,410.48 1,567,410.48 0.4501,567,410.48UNION OPERATING 1 0.000STATE OF CALIFORNIA9005 157,815.01 157,815.0107/01/2019 157,815.01PAYROLL 1 0.010STATE OF CALIFORNIA9010 24,452.30 24,452.30 0.01007/01/2019 24,452.30RESERVE-10 COPS 1 0.010STATE OF CALIFORNIA9011 59,148.41 59,148.41 0.01007/01/2019 59,148.41RESERVE-10 BABS 1 0.000STATE OF CALIFORNIA9014 49,879.92 49,879.9207/01/2019 49,879.92UBNA-FLEX ACCT 1 0.00 76,077,870.10 77,027,878.53 1.241 23 1Average Balance 77,506,173.24 77,066,344.45Total Cash and Investments Portfolio OTAY NL! APData Updated: SET_ME8: 07/21/2020 16:01 Run Date: 07/21/2020 - 16:01 PM (PRF_PM2) 7.3.0 Month End Activity Report Sorted By Issuer June 1, 2020 - June 30, 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 0.001.217 101,000.00LAIF 2018 101,000.005,630,552.73 5,529,552.73Subtotal and Balance 0.00 Union Bank STATE OF CALIFORNIA9002 2,208.870.010 2,232.57UNION MONEY STATE OF CALIFORNIA9004 2,601,703.680.450 1,623,999.00UNION OPERATING STATE OF CALIFORNIA9005 0.00 61,260.14PAYROLL STATE OF CALIFORNIA9010 2.230.010 0.00RESERVE-10 COPS STATE OF CALIFORNIA9011 5.350.010 0.00RESERVE-10 BABS STATE OF CALIFORNIA9014 0.00 5,576.63UBNA-FLEX ACCT 1,693,068.341,950,813.20 2,861,664.99Subtotal and Balance 2,603,920.13 Local Agency Investment Fund (LAIF) STATE OF CALIFORNIA9001 5,000,000.001.217 6,200,000.00LAIF 6,200,000.0061,098,003.35 59,898,003.35Subtotal and Balance 5,000,000.00 7,603,920.13 7,994,068.3468,679,369.28 68,289,221.0788.655%Issuer Subtotal Issuer: Federal Home Loan Bank Federal Agency Issues - Coupon 3,650,000.00 3,650,000.00Subtotal and Balance 0.00 0.003,650,000.00 3,650,000.004.739%Issuer Subtotal Issuer: San Diego County San Diego County Pool San Diego County9007 4,801,046.441.629 0.00SD COUNTY POOL 0.00287,611.02 5,088,657.46Subtotal and Balance 4,801,046.44 4,801,046.44 0.00287,611.02 5,088,657.466.606%Issuer Subtotal Portfolio OTAY NL! APData Updated: SET_ME8: 07/21/2020 16:01 Run Date: 07/21/2020 - 16:01 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 June 1, 2020 - June 30, 2020 Activity Report Month End CUSIP Investment #Issuer Purchases orDeposits Redemptions orWithdrawals 72,616,980.30 77,027,878.53Total7,994,068.3412,404,966.57100.000% Portfolio OTAY NL! APData Updated: SET_ME8: 07/21/2020 16:01 Run Date: 07/21/2020 - 16:01 DA (PRF_DA) 7.2.0 Report Ver. 7.3.5 Month End Duration Report Sorted by Investment Type - Investment Type Through 06/30/2020 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 1,029,924.00313378JP7 0.289 09/10/2021 1.1721,015,591.30 1.454Fair2.375000 Federal Home Loan Bank238599 2,645,000.00 2,710,596.00313378JP7 0.289 09/10/2021 1.1722,672,874.62 1.454Fair2.375000 STATE OF CALIFORNIA901599 5,529,552.73 5,556,718.29LAIF 2018 1.217 0.0005,529,552.73 1.200Fair1.217000 STATE OF CALIFORNIA900199 59,898,003.35 60,192,269.96LAIF 1.217 0.00059,898,003.35 1.200Fair1.217000 San Diego County900799 5,088,657.46 5,155,000.00SD COUNTY 1.629 0.0005,088,657.46 1.607Fair1.629000 1.199 0.05874,204,679.46 74,166,213.54 74,644,508.25Report Total Portfolio OTAY NL! APPage 1Data Updated: SET_ME8: 07/21/2020 16:01 Run Date: 07/21/2020 - 16:01 DU (PRF_DU) 7.1.1 Report Ver. 7.3.5 Month End GASB 31 Compliance Detail Sorted by Fund - Fund June 1, 2020 - June 30, 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 1,032,054.60Fair Value 09/10/2021 -2,130.6099 1,029,924.00313378JP70.00 0.00 0.00 0.00 2385 2,716,203.40Fair Value 09/10/2021 -5,607.4099 2,710,596.00313378JP70.00 0.00 0.00 0.00 9003 2,950.00Amortized 0.0099 2,950.00PETTY CASH 0.00 0.00 0.00 0.00 9010 24,450.07Amortized 0.0099 24,452.30RESERVE-10 COPS 0.00 2.23 0.00 0.00 9015 5,672,674.98Fair Value -14,956.6999 5,556,718.29LAIF 2018 0.00 0.00 101,000.00 0.00 9011 59,143.06Amortized 0.0099 59,148.41RESERVE-10 BABS 0.00 5.35 0.00 0.00 9005 219,075.15Amortized 0.0099 157,815.01PAYROLL0.00 0.00 61,260.14 0.00 9014 55,456.55Amortized 0.0099 49,879.92UBNA-FLEX ACCT 0.00 0.00 5,576.63 0.00 9002 1,000,032.57Amortized 0.0099 1,000,008.87UNION MONEY 0.00 2,208.87 2,232.57 0.00 9004 589,705.80Amortized 0.0099 1,567,410.48UNION OPERATING 0.00 2,601,703.68 1,623,999.00 0.00 9001 61,555,078.43Fair Value -162,808.4799 60,192,269.96LAIF0.00 5,000,000.00 6,200,000.00 0.00 9007 291,000.00Fair Value 62,953.5699 5,155,000.00SD COUNTY POOL 0.00 4,801,046.44 0.00 0.00 73,217,824.61Subtotal -122,549.60 77,506,173.240.00 12,404,966.57 7,994,068.34 0.00 73,217,824.61Total 77,506,173.24-122,549.600.00 12,404,966.57 7,994,068.34 0.00 Portfolio OTAY NL! APData Updated: SET_ME8: 07/21/2020 16:01 Run Date: 07/21/2020 - 16:01 GD (PRF_GD) 7.1.1 Report Ver. 7.3.5 Month End Interest Earnings Sorted by Fund - Fund June 1, 2020 - June 30, 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 1,015,591.3023841,005,000.00 2.375FAC09/10/2021 1,989.06 -740.65 1,248.411.494991,016,331.95313378JP7 2,672,874.6223852,645,000.00 2.375FAC09/10/2021 5,234.89 -1,949.27 3,285.621.494992,674,823.89313378JP7 24,452.30901024,452.30 0.010PA1 0.20 0.00 0.200.0109924,450.07RESERVE-10 COPS 5,529,552.7390155,529,552.73 1.217LA2 5,537.80 0.00 5,537.801.197995,630,552.73LAIF 2018 59,148.41901159,148.41 0.010PA1 0.48 0.00 0.480.0109959,143.06RESERVE-10 BABS 1,000,008.8790021,000,008.87 0.010PA1 8.22 0.00 8.220.010991,000,032.57UNION MONEY 1,567,410.4890041,567,410.48 0.450PA1 1,159.98 0.00 1,159.982.39399589,705.80UNION OPERATING 59,898,003.35900159,898,003.35 1.217LA1 60,807.99 0.00 60,807.991.2119961,098,003.35LAIF 5,088,657.4690075,088,657.46 1.629LA3 2,099.25 0.00 2,099.258.88099287,611.02SD COUNTY POOL 76,817,233.60Subtotal 76,855,699.52 1.246 74,147.95-2,689.9276,837.8772,380,654.44 76,817,233.60Total 76,855,699.52 1.246 74,147.95-2,689.9276,837.8772,380,654.44 Portfolio OTAY NL! APData Updated: SET_ME8: 07/21/2020 16:01 Run Date: 07/21/2020 - 16:01 IE (PRF_IE) 7.2.0 Report Ver. 7.3.5 SUMMARY FOR PERIOD 6/18/2020 - 7/22/2020 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/&    05":8"5&3%*453*$5#*8&&,-:1":30--%&%6$5*0/  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   16#-*$&.1-0:&&43&54:45&.#*8&&,-:1&34$0/53*#65*0/   16#-*$&.1-0:&&43&54:45&.#*8&&,-:1&34$0/53*#65*0/   4"/%*&(0$06/5:8"5&3"65)8"5&3%&-*7&3*&4$)"3(&4 .":    41&$*"-%*453*$53*4,&.1-0:&&.&%*$"-#&/&'*54   41&$*"-%*453*$53*4,&.1-0:&&.&%*$"-#&/&'*54   6/*0/#"/,#*8&&,-:1":30--5"9&4   6/*0/#"/,#*8&&,-:1":30--5"9&4   64#"/,$"-$"3%&91&/4&4 .0/5)-:   70:"'*/"/$*"-#*8&&,-:"1-"/   70:"'*/"/$*"-#*8&&,-:"1-"/   TOTAL CASH DISBURSEMENTS $ 12,466,347.28 RECOMMENDED ACTION: 5IBUUIF#PBSESFDFJWFEUIFBUUBDIFEMJTUPGEFNBOET +C"UUBDINFOU 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. "VHVTU  Check Total 2,877.50 5,345.99 8,606.70 180.46 35,123.40 35,123.40 2054456 06/24/20 19498 ASHLEY LUNN Ref002548146 04/15/19 UB Refund Cst #0000161192 180.46 HARDWARE & PARTS FOR VAULTS 773.61 773.61 2054562 07/08/20 17264 ARTIANO SHINOFF ABED 303763 06/11/20 PROFESSIONAL SERVICES (THRU MAY 2020) 2054599 07/15/20 01971 ARMORCAST PRODUCTS COMPANY 0207819 06/30/20 951.13 2054455 06/24/20 20248 ANTONIO RODRIGUES Ref002596297 06/22/20 UB Refund Cst #0000048571 21.06 21.06 1,600.32 1,600.32 2054561 07/08/20 08967 ANTHEM EAP 78967 07/01/20 EMPLOYEE ASSISTANCE PROGRAM 951.13 UB Refund Cst #0000252911 5.07 5.07 2054598 07/15/20 06165 ANITA FIRE HOSE COMPANY ETC 40744 06/25/20 ANNUAL FIRE EXTINGUISHER INSPECTION 2054454 06/24/20 20260 ANDREA ESKELSON Ref002596309 06/22/20 140.17 2054627 07/22/20 20249 ANA MARIA ALVAREZ Ref002600988 07/20/20 UB Refund Cst #0000066888 120.00 120.00 34.43 34.43 2054453 06/24/20 20249 ANA MARIA ALVAREZ Ref002596298 06/22/20 UB Refund Cst #0000066888 140.17 UB Refund Cst #0000232241 149.30 149.30 2054628 07/22/20 20296 AMALIA SEIFERT Ref002600994 07/20/20 UB Refund Cst #0000259486 2054452 06/24/20 18534 ALYSSA CRUZ Ref002495594 01/02/18 CM202018 06/08/20 CMIS (MAY 2020)3,200.00 CM202017 06/08/20 CMIS (MAY 2020)2,080.00 1,125.00 2054505 07/01/20 14462 ALYSON CONSULTING CM202016 06/08/20 CMIS (MAY 2020)3,326.70 223.78 223.78 2054597 07/15/20 14462 ALYSON CONSULTING CM202027 06/08/20 CMIS (JUNE 2020)1,125.00 UTILITY LOCATING (MAY 2020)7,800.00 7,800.00 2054451 06/24/20 20247 ALLEN ANDREWS Ref002596296 06/22/20 UB Refund Cst #0000039865 2054504 07/01/20 15024 AIRX UTILITY SURVEYORS INC 2805312020 06/05/20 131657049 06/24/20 AS-NEEDED AQUA AMMONIA 913.50 131657051 06/24/20 AS-NEEDED AQUA AMMONIA 871.00 AS-NEEDED AQUA AMMONIA 2,581.50 131657658 06/29/20 AS-NEEDED AQUA AMMONIA 979.99 131654535 06/03/20 AS-NEEDED AQUA AMMONIA 168.50 2054596 07/15/20 07732 AIRGAS SPECIALTY PRODUCTS INC 131657050 06/24/20 675.00 2054503 07/01/20 07732 AIRGAS SPECIALTY PRODUCTS INC 131654577 06/03/20 AS-NEEDED AQUA AMMONIA 2,709.00 1,013.64 1,013.64 2054595 07/15/20 17989 ADS CORP 22446.22-0620 06/26/20 ADS FLOW MONITORING 675.00 SHAREPOINT & INTRANET SUPPORT SVCS 300.00 300.00 2054560 07/08/20 18122 ACC BUSINESS 201651489 06/27/20 INTERNET CIRCUIT SERVICES FY20-22 2054594 07/15/20 08488 ABLEFORCE INC 9410 06/30/20 1,054.44 2054559 07/08/20 20277 A M ORTEGA CONSTRUCTION Ref002596485 07/06/20 UB Refund Cst #0000260631 1,738.23 1,738.23 Amount 2054593 07/15/20 14617 A GLASCO INC 1193 06/18/20 GLASS BARRIER SYSTEMS 1,054.44 CHECK REGISTER Otay Water District Date Range: 6/18/2020 - 7/22/2020 Check #Date Vendor Vendor Name Invoice Inv. Date Description Page 1 of 12 Check Total Amount CHECK REGISTER Otay Water District Date Range: 6/18/2020 - 7/22/2020 Check #Date Vendor Vendor Name Invoice Inv. Date Description 181,962.00 66.95 753.11 16622 05/31/20 BACTERIOLOGICAL TESTING (5/18/20)188.00 16627 05/31/20 BACTERIOLOGICAL TESTING (5/28/20)206.00 16619 05/31/20 BACTERIOLOGICAL TESTING (5/6/20)188.00 16623 05/31/20 BACTERIOLOGICAL TESTING (5/19/20-5/20/20)376.00 16625 05/31/20 BACTERIOLOGICAL TESTING (5/26/20-5/27/20)376.00 16618 05/31/20 BACTERIOLOGICAL TESTING (5/4/20-5/5/20)376.00 16620 05/31/20 BACTERIOLOGICAL TESTING (5/11/20-5/12/20)376.00 BACTERIOLOGICAL TESTING (6/2/20-6/3/20)527.00 16621 05/31/20 BACTERIOLOGICAL TESTING (5/12/20-5/13/20)452.00 AR051879 06/29/20 CONSERVATION-BUS TRANSPORTATION 318.61 2054461 06/24/20 04119 CLARKSON LAB & SUPPLY INC 16626 05/31/20 725.00 725.00 2054512 07/01/20 02026 CHULA VISTA ELEM SCHOOL DIST AR051872 06/29/20 CONSERVATION-BUS TRANSPORTATION 434.50 CLAIM REIMBURSEMENT 243.55 243.55 2054511 07/01/20 15800 CHAN, SIU MAN POLLY PC062220 06/25/20 TUITION REIMBURSEMENT 2054460 06/24/20 20264 CESAR ROXAS 2216062220 06/22/20 77.03 2054510 07/01/20 15177 CAROLLO ENGINEERS INC 0183356 06/11/20 DESIGN/CONSTRUCT 870-2 (12/1/19-4/30/20)3,173.00 3,173.00 3,444.00 3,444.00 2054459 06/24/20 20263 BUILD TO SUIT LTD LP Ref002596312 06/22/20 UB Refund Cst #0000260173 77.03 LEGISLATIVE ADVOCACY CONSULT SERV 4,374.19 4,374.19 2054632 07/22/20 08156 BROWNSTEIN HYATT FARBER 806704 07/07/20 LEGISLATIVE ADVOCACY CONSULT SERV 2054563 07/08/20 08156 BROWNSTEIN HYATT FARBER 806188 06/30/20 61.29 2054458 06/24/20 19360 BLANCA SOTELO Ref002537441 02/04/19 UB Refund Cst #0000168977 25.66 25.66 14.21 14.21 2054509 07/01/20 19929 BETTY DEATHERAGE Ref002573733 12/09/19 UB Refund Cst #0000257699 61.29 REFUND W/O D0909 383.43 383.43 2054457 06/24/20 20255 BERNARDITO MALICSI Ref002596304 06/22/20 UB Refund Cst #0000243387 20086 06/30/20 BACKGROUND CHECK 21.00 2054508 07/01/20 12684 BALDWIN & SONS LLC WOD0909 01/15/19 60,000.00 60,000.00 2054631 07/22/20 08024 BACKGROUND PROFILES INC 19982 05/31/20 BACKGROUND CHECK 45.95 TELEPHONE SERVICES (5/12/20 - 6/11/20)4,177.75 4,177.75 2054507 07/01/20 18124 AZTECA SYSTEMS LLC 2444 06/08/20 CITYWORKS LICENSES & SUPPORT RENEWAL 2054630 07/22/20 07785 AT&T 000014874735 06/12/20 LIABILITY INSURANCE 178,988.00 O0000006861 06/29/20 PREMIUM FOR FIDUCIARY COVERAGE 7/1/2020 - 6/30/20212,974.00 2054629 07/22/20 20199 ASSOC OF CA WATER AGENCIES LIABILITY 70120 07/01/20 180.46 2054506 07/01/20 20199 ASSOC OF CA WATER AGENCIES EXCESS CRIME 06/18/20 ACWA-JPIA EXCESS CRIME ANNUAL PREMIUM 1,223.00 1,223.00 2054456 06/24/20 19498 ASHLEY LUNN Ref002548146 04/15/19 UB Refund Cst #0000161192 180.46 Page 2 of 12 Check Total Amount CHECK REGISTER Otay Water District Date Range: 6/18/2020 - 7/22/2020 Check #Date Vendor Vendor Name Invoice Inv. Date Description 3,253.00 12,866.22 100.00 1,719.37 1,530.00 2,558.35 143,405.43 11,187.00 11,187.00 UB Refund Cst #0000171911 127.39 127.39 2054605 07/15/20 15084 DLT SOLUTIONS LLC SI482985 06/29/20 AUTODESK SOFTWARE LIC SUBSCRIPTION 2054463 06/24/20 19277 DIANA OLMOS Ref002534857 12/20/18 75.00 2054517 07/01/20 19655 DEUTSCHE BANK NATIONAL TRUST Ref002556376 07/08/19 UB Refund Cst #0000251389 140.88 140.88 20,293.31 20,293.31 2054565 07/08/20 20273 DESTINY TAYLOR Ref002596480 07/06/20 UB Refund Cst #0000251108 75.00 UB Refund Cst #0000258450 29.23 29.23 2054637 07/22/20 02603 DELL MARKETING LP 10401509516 06/20/20 VEEAM SERVER UPGRADE 2054636 07/22/20 20295 DANNY GORGES Ref002600993 07/20/20 I 2020-0642 06/12/20 ENCORE 700 PARTS 4,534.16 I 2020-0563 06/01/20 CL2 PM KITS 2,424.97 60,079.24 60,079.24 2054516 07/01/20 11797 D&H WATER SYSTEMS INC I20200539 05/22/20 RCS EQUIPMENT & INSTALLATION 136,446.30 SHUT DOWN TEST (5/28/20)80.60 80.60 2054604 07/15/20 03086 COUNTY OF SAN DIEGO LC20-28 07/13/20 OTHER AGENCY FEE 2054515 07/01/20 00184 COUNTY OF SAN DIEGO E631920520 06/04/20 DEVELOPER PROJECT INSPECTION (2/29/20)2,481.85 E632470520 06/04/20 DEVELOPER PROJECT INSPECTION (5/18/20)76.50 2054462 06/24/20 00184 COUNTY OF SAN DIEGO E631910520 06/04/20 DEVELOPER PLAN CHECK 765.00 E632820720 07/09/20 DEVELOPER PLAN CHECK 765.00 07/07/20 DEVELOPER PLAN CHECK 807.50 807.50 2054635 07/22/20 00184 COUNTY OF SAN DIEGO E632810720 07/09/20 911.87 E63268070220 07/02/20 DEVELOPER PLAN CHECK 807.50 2054603 07/15/20 00184 COUNTY OF SAN DIEGO E63269070720 NOTICE OF EXEMPTION 50.00 50.00 2054602 07/15/20 00184 COUNTY OF SAN DIEGO DEH200161OHP 07/07/20 INDUSTRIAL HYGIENE SERV (7/1/19 - 6/30/20) 2054514 07/01/20 00134 COUNTY OF SAN DIEGO 062520 06/25/20 NOTICE OF EXEMPTION 50.00 p2654072020 07/20/20 NOTICE OF EXEMPTION 50.00 2054634 07/22/20 00134 COUNTY OF SAN DIEGO P2663072020 07/20/20 328,760.44 2054513 07/01/20 00099 COUNTY OF SAN DIEGO DPWMWD0520 06/08/20 EXCAVATION PERMIT (MAY 2020)4,823.30 4,823.30 545.00 545.00 2054633 07/22/20 19675 CORTECH ENGINEERING 51478403 06/26/20 PORTABLE VFD PUMP 328,760.44 METER BODIES 20,982.16 20,982.16 2054601 07/15/20 05622 CORRPRO COMPANIES INC 607932 06/26/20 CORROSION SERVICES (4/30/20-6/30/20) M628992 07/07/20 INVENTORY 77.58 2054600 07/15/20 18331 CORE & MAIN LP M300337 06/23/20 INVENTORY 9,895.55 M572997 06/26/20 INVENTORY 2,893.09 2054564 07/08/20 18331 CORE & MAIN LP M570533 06/26/20 16624 05/31/20 BACTERIOLOGICAL TESTING (5/20/20)188.00 Page 3 of 12 Check Total Amount CHECK REGISTER Otay Water District Date Range: 6/18/2020 - 7/22/2020 Check #Date Vendor Vendor Name Invoice Inv. Date Description 587.66 272.78 65,132.96 9,120.00 2054469 06/24/20 19593 GABRIAL VILLASENIOR Ref002552217 06/10/19 UB Refund Cst #0000241184 75.00 75.00 166.49 166.49 2054644 07/22/20 13563 FRIENDS OF THE WATER ED 2225 06/30/20 WATER CONSERVATION GARDEN TOURS 9,120.00 BI-WEEKLY PAYROLL DEDUCTION 117.03 117.03 2054468 06/24/20 20216 FRANCHISE TAX BOARD Ben2596357 06/25/20 BI-WEEKLY PAYROLL DEDUCTION 2054568 07/08/20 19768 FRANCHISE TAX BOARD Ben2596590 07/09/20 75.00 2054467 06/24/20 19768 FRANCHISE TAX BOARD Ben2596355 06/25/20 BI-WEEKLY PAYROLL DEDUCTION 125.00 125.00 75.00 75.00 2054643 07/22/20 19640 FRANCHISE TAX BOARD Ben2601029 07/23/20 BI-WEEKLY PAYROLL DEDUCTION 75.00 BI-WEEKLY PAYROLL DEDUCTION 75.00 75.00 2054466 06/24/20 19640 FRANCHISE TAX BOARD Ben2596353 06/25/20 BI-WEEKLY PAYROLL DEDUCTION 2054567 07/08/20 19640 FRANCHISE TAX BOARD Ben2596588 07/09/20 FORD F-550 & F-150 TRUCKS 32,566.48 200124 04/21/20 FORD F-550 & F-150 TRUCKS 32,566.48 1910510 06/12/20 FLEET WASH SERVICES 77.94 2054566 07/08/20 19868 FORD OF CHULA VISTA 200134 04/21/20 FLEET WASH SERVICES 116.90 19216242 06/26/20 FLEET WASH SERVICES 77.94 2054606 07/15/20 11962 FLEETWASH INC 1914931 06/19/20 1883731 05/08/20 FLEET WASH SERVICES 96.67 1893792 05/22/20 FLEET WASH SERVICES 93.52 1888756 05/15/20 FLEET WASH SERVICES 132.49 1898132 05/29/20 FLEET WASH SERVICES 101.32 266.58 2054465 06/24/20 11962 FLEETWASH INC 1881373 05/01/20 FLEET WASH SERVICES 163.66 560.16 560.16 2054519 07/01/20 11962 FLEETWASH INC 1907356 06/05/20 FLEET WASH SERVICES 266.58 INVENTORY 4,654.80 4,654.80 2054464 06/24/20 20254 FJ WILLERT CONT CO INC Ref002596303 06/22/20 UB Refund Cst #0000241398 2054518 07/01/20 03546 FERGUSON WATERWORKS # 1083 0720669 06/22/20 200.00 2054642 07/22/20 03546 FERGUSON WATERWORKS # 1083 0721262 06/25/20 INVENTORY 1,018.24 1,018.24 20.62 20.62 2054641 07/22/20 20293 ENRIQUE OCAMPO Ref002600991 07/20/20 UB Refund Cst #0000240244 200.00 UB Refund Cst #0000259703 1,683.97 1,683.97 2054500 07/01/20 19831 EMILY PAREDES Ref002567754 10/14/19 UB Refund Cst #0000252227 2054640 07/22/20 20299 DRI MAPLE MILLENIA LLC Ref002600997 07/20/20 1,542.88 2054639 07/22/20 20298 DRI MAPLE MILLENIA LLC Ref002600996 07/20/20 UB Refund Cst #0000259699 1,096.08 1,096.08 11,187.00 11,187.00 2054638 07/22/20 20297 DRI MAPLE MILLENIA LLC Ref002600995 07/20/20 UB Refund Cst #0000259698 1,542.88 2054605 07/15/20 15084 DLT SOLUTIONS LLC SI482985 06/29/20 AUTODESK SOFTWARE LIC SUBSCRIPTION Page 4 of 12 Check Total Amount CHECK REGISTER Otay Water District Date Range: 6/18/2020 - 7/22/2020 Check #Date Vendor Vendor Name Invoice Inv. Date Description 29,456.68 8,643.64 7,024.58 3,833.4767672603/19/20 AS-NEEDED SODIUM HYPOCHLORITE 67.73 676727 03/19/20 AS-NEEDED SODIUM HYPOCHLORITE 682.79 687036 05/26/20 AS-NEEDED SODIUM HYPOCHLORITE 570.27 AS-NEEDED SODIUM HYPOCHLORITE 1,310.96 676728 03/19/20 AS-NEEDED SODIUM HYPOCHLORITE 1,201.72 2054572 07/08/20 19978 HASA INC.675858 03/12/20 687580 05/28/20 AS-NEEDED SODIUM HYPOCHLORITE 688.26 687579 05/28/20 AS-NEEDED SODIUM HYPOCHLORITE 655.48 687577 05/28/20 AS-NEEDED SODIUM HYPOCHLORITE 1,092.47 687581 05/28/20 AS-NEEDED SODIUM HYPOCHLORITE 1,092.47 AS-NEEDED SODIUM HYPOCHLORITE 2,075.69 688189 06/01/20 AS-NEEDED SODIUM HYPOCHLORITE 1,420.21 690382 06/11/20 AS-NEEDED SODIUM HYPOCHLORITE 122.36 2054472 06/24/20 19978 HASA INC.687037 05/26/20 690383 06/11/20 AS-NEEDED SODIUM HYPOCHLORITE 1,037.85 688705 06/04/20 AS-NEEDED SODIUM HYPOCHLORITE 600.86 689022 06/04/20 AS-NEEDED SODIUM HYPOCHLORITE 1,201.72 690381 06/11/20 AS-NEEDED SODIUM HYPOCHLORITE 1,037.85 1,747.95 690991 06/15/20 AS-NEEDED SODIUM HYPOCHLORITE 1,638.71 690990 06/15/20 AS-NEEDED SODIUM HYPOCHLORITE 1,256.34 UB Refund Cst #0000252793 1,422.70 1,422.70 2054521 07/01/20 19978 HASA INC.689548 06/08/20 AS-NEEDED SODIUM HYPOCHLORITE 19592 06/30/20 LANDSCAPE REHABILITATION (CIP)47.50 2054645 07/22/20 20294 HAMANN CONSTRUCTION Ref002600992 07/20/20 19509 06/15/20 LANDSCAPING SERVICES 9,542.50 19402 05/18/20 LANDSCAPING SERVICES 9,542.50 2,077.95 2054571 07/08/20 12907 GREENRIDGE LANDSCAPE INC 19408 05/18/20 LANDSCAPE REHABILITATION (CIP)10,324.18 4,016.80 4,016.80 2054520 07/01/20 19980 GRACE BUILDERS INC.061020 06/10/20 LOBBY SECURITY ENHANCEMENTS 2,077.95 UB Refund Cst #0000243122 45.09 45.09 2054608 07/15/20 03537 GHA TECHNOLOGIES INC 101057260 06/25/20 VERITAS DATA BACKUP LICENSE & SUPPORT 2054471 06/24/20 19367 GESANT GARCIA Ref002537449 02/04/19 1,297.89 2054570 07/08/20 20272 GEORGE WILKINSON Ref002596479 07/06/20 UB Refund Cst #0000187301 56.95 56.95 125.57 125.57 2054569 07/08/20 20274 GEO PACIFIC SERVICES INC Ref002596481 07/06/20 UB Refund Cst #0000251541 1,297.89 SCADA SOFTWARE LICENSE RENEWAL 19,785.92 19,785.92 2054470 06/24/20 20253 GENESIS NEW HOMES LLC Ref002596302 06/22/20 UB Refund Cst #0000225125 2054607 07/15/20 02776 GE DIGITAL LLC 17001100019311 06/22/20 Page 5 of 12 Check Total Amount CHECK REGISTER Otay Water District Date Range: 6/18/2020 - 7/22/2020 Check #Date Vendor Vendor Name Invoice Inv. Date Description 5,688.50 5,400.00 1,198.75 100.96 19,415.87 2,881.27 10.16 2054526 07/01/20 20266 JOCELYN ESTEBAN 033106302020 06/30/20 CUSTOMER REFUND 92.03 92.03 87.38 87.38 2054646 07/22/20 20292 JEFF JIMENEZ Ref002600990 07/20/20 UB Refund Cst #0000230604 10.16 SOFTWARE MAINTENANCE & SUPPORT 28,329.25 28,329.25 2054557 07/08/20 11896 JAMES WALDVOGEL Ref002596477 07/06/20 UB Refund Cst #0000119270 2054525 07/01/20 18678 INNOVYZE INC Q-56547 06/30/20 BILL PROCESSING SERVICES 2,525.27 173198 06/04/20 BILL PROCESSING SERVICES 356.00 0147649 06/18/20 ENVIRONMENTAL SVCS (4/25/20-5/29/20)1,337.50 2054524 07/01/20 08969 INFOSEND INC 173149 06/02/20 9,785.84 0147648 06/18/20 ENVIRONMENTAL SVCS (4/25/20-5/29/20)4,876.28 0147696 06/18/20 ENVIRONMENTAL SVCS (4/25/20-5/29/20)3,416.25 ENVIRONMENTAL SVCS (4/25/20-5/29/20)937.50 937.50 2054611 07/15/20 15622 ICF JONES & STOKES INC 0147650 06/18/20 SAN MIGUEL HMA (4/25/20-5/29/20) 07/04/20 WEB HOSTING (JULY 2020-JUNE 2021)112.50 112.50 2054523 07/01/20 15622 ICF JONES & STOKES INC 0147471 06/11/20 50.48 542836920 06/09/20 WATER USAGE (4/8/20-6/4/20)50.48 2054574 07/08/20 00062 HELIX WATER DISTRICT 070420 UB Refund Cst #0000243491 17.92 17.92 2054475 06/24/20 00062 HELIX WATER DISTRICT 433006920 06/09/20 WATER USAGE (4/8/20-6/4/20) 2054474 06/24/20 19051 HECTOR BARRERAS Ref002517371 09/04/18 SEWER COST OF SERVICE STUDY UPDATE 780.00 1200273716 06/05/20 CAPACITY FEE STUDY 418.75 05/26/20 ASSET MANAGEMENT SVCS (APR 2020)4,175.74 4,175.74 2054522 07/01/20 19825 HDR ENGINEERING INC 1200273717 06/05/20 3,477.50 200940037 06/24/20 ASSET MANAGEMENT SVCS (MAY 2020)1,922.50 2054473 06/24/20 18436 HAZEN AND SAWYER DPC 200940036 UB Refund Cst #0000257184 1,705.75 1,705.75 2054610 07/15/20 18436 HAZEN AND SAWYER DPC 2009400211 06/22/20 POTABLE PIPE REPLACEMENT (3/1/20-5/31/20) 693829 06/29/20 AS-NEEDED SODIUM HYPOCHLORITE 333.20 2054573 07/08/20 20276 HAZARD CONSTRUCTION INC Ref002596484 07/06/20 693291 06/25/20 AS-NEEDED SODIUM HYPOCHLORITE 436.99 691560 06/17/20 AS-NEEDED SODIUM HYPOCHLORITE 420.60 691770 06/18/20 AS-NEEDED SODIUM HYPOCHLORITE 663.13 693294 06/25/20 AS-NEEDED SODIUM HYPOCHLORITE 546.24 691771 06/18/20 AS-NEEDED SODIUM HYPOCHLORITE 808.43 693293 06/25/20 AS-NEEDED SODIUM HYPOCHLORITE 688.26 AS-NEEDED SODIUM HYPOCHLORITE 912.21 693292 06/25/20 AS-NEEDED SODIUM HYPOCHLORITE 879.44 2054609 07/15/20 19978 HASA INC.692505 06/22/20 Page 6 of 12 Check Total Amount CHECK REGISTER Otay Water District Date Range: 6/18/2020 - 7/22/2020 Check #Date Vendor Vendor Name Invoice Inv. Date Description 19.57 19.57 UB Refund Cst #0000240611 20.60 20.60 2054535 07/01/20 19953 MELISSA PEREZ Ref002577473 12/23/19 UB Refund Cst #0000231412 2054450 06/24/20 19411 MEGAN IGO Ref002540979 03/04/19 42.24 2054449 06/24/20 19628 MATTHEW MILBERT Ref002556173 06/24/19 UB Refund Cst #0000249207 20.07 20.07 19.39 19.39 2054482 06/24/20 18833 MATTHEW MCCUTCHEON Ref002507012 05/24/18 UB Refund Cst #0000242349 42.24 UB Refund Cst #0000252784 58.93 58.93 2054481 06/24/20 20252 MARK RILEY Ref002596301 06/22/20 UB Refund Cst #0000223987 2054534 07/01/20 19707 MARIA NOWAK Ref002559500 06/16/20 448.56 2054480 06/24/20 10512 MAIL MANAGEMENT GROUP INC OWD-12017 05/18/20 PRINTING SERVICES 431.08 431.08 52.71 52.71 2054579 07/08/20 10512 MAIL MANAGEMENT GROUP INC OWD-12037 06/11/20 PRINTING SERVICES 448.56 SAFETY TRAINING 4,090.00 4,090.00 2054479 06/24/20 19352 LORENA PAILLES Ref002537332 01/17/19 UB Refund Cst #0000240619 2054478 06/24/20 19823 LIZARDI TRAINING CENTER LLC 104 06/18/20 45.46 2054578 07/08/20 20270 LISA LABRECQUE Ref002596476 07/06/20 UB Refund Cst #0000089629 38.07 38.07 24.87 24.87 2054477 06/24/20 19308 LIGHT HOUSE BUILDERS INC Ref002534945 01/07/19 UB Refund Cst #0000242491 45.46 PROFESSIONAL SERVICES 875.00 875.00 2054533 07/01/20 19749 LEPRO ONE LLC Ref002562368 08/30/19 UB Refund Cst #0000229598 2054647 07/22/20 15597 LEONARD H VILLARREAL 061720 06/17/20 67,770.00 2054532 07/01/20 14513 LB CIVIL CONSTRUCTION INC 105152020 06/09/20 DICTIONARY HILL WATER LINE REPLACEMENT 28,500.00 28,500.00 15.16 15.16 2054531 07/01/20 15615 LAYFIELD USA CORPORATION E09122 06/11/20 RESERVOIR FLOATING COVER MAINTENANCE 67,770.00 UB Refund Cst #0000184952 210.40 210.40 2054530 07/01/20 19698 KOUMBE DIOP Ref002559491 06/16/20 UB Refund Cst #0000195377 2054577 07/08/20 20271 KIM EDGCOMB Ref002596478 07/06/20 125,749.09 2054529 07/01/20 19686 KELLEY MCLAIN Ref002559057 06/16/20 UB Refund Cst #0000249049 43.54 43.54 40.09 40.09 2054612 07/15/20 20075 KAY CONSTRUCTION CO 106302020 07/07/20 HIDDEN MTN WET WELL PROJ (ENDING 6/30/20)125,749.09 UB Refund Cst #0000233876 40.32 40.32 2054528 07/01/20 19861 KALENA FONSECA Ref002571132 10/28/19 UB Refund Cst #0000253253 2054527 07/01/20 19908 JUDITH KUYKENDALL Ref002573598 11/25/19 8.92 2054576 07/08/20 20279 JOSEPH AND JUDY BOHLEN Ref002596487 07/06/20 UB Refund Cst #0000263472 1,502.85 1,502.85 39.88 39.88 2054575 07/08/20 20275 JORGE VARGAS Ref002596483 07/06/20 UB Refund Cst #0000256315 8.92 UB Refund Cst #0000252828 16.09 16.09 2054476 06/24/20 20259 JORGE ALONSO Ref002596308 06/22/20 UB Refund Cst #0000252894 2054558 07/08/20 20223 JOHN CERDA Ref002596482 07/06/20 Page 7 of 12 Check Total Amount CHECK REGISTER Otay Water District Date Range: 6/18/2020 - 7/22/2020 Check #Date Vendor Vendor Name Invoice Inv. Date Description 143.72 2054488 06/24/20 20258 SABAH KAREEM Ref002596307 06/22/20 UB Refund Cst #0000251699 67.96 67.96 750.00 750.00 2054649 07/22/20 20290 ROBERT DEGUIRE Ref002600987 07/20/20 UB Refund Cst #0000040400 143.72 TRAFFIC ENGINEERING SERV (3/28/20-4/24/20)1,171.42 1,171.42 2054648 07/22/20 00521 RICK POST WELD & WET TAPPING 12599 06/19/20 RICK POST WELDING SERVICES 2054544 07/01/20 08972 RICK ENGINEERING COMPANY 0075038 05/29/20 50.81 2054487 06/24/20 20257 REBECCA JOHNSON Ref002596306 06/22/20 UB Refund Cst #0000249949 17.57 17.57 1,441.17 1,441.17 2054486 06/24/20 20261 RAY CRUZ Ref002596310 06/22/20 UB Refund Cst #0000257387 50.81 PAYMENT OF CLAIM #19-5374779 5,724.31 5,724.31 2054543 07/01/20 17616 RAMIREZ, LARRY LR062220 06/22/20 TUITION REIMBURSEMENT 2054582 07/08/20 20268 PROGRESSIVE WEST INSUR CO 195374779 04/15/20 1,628.74 2054542 07/01/20 06419 PLANT SOUP INC 1311 06/29/20 PROFESSIONAL WRITING SERVICES 1,137.50 1,137.50 1,595.00 1,595.00 2054617 07/15/20 00137 PETTY CASH CUSTODIAN 071420 07/14/20 PETTY CASH REIMBURSEMENT (JULY 2020)1,628.74 UB Refund Cst #0000251986 51.77 51.77 2054485 06/24/20 00137 PETTY CASH CUSTODIAN 061820 06/18/20 PETTY CASH REIMBURSEMENT (JUNE 2020) 2054501 07/01/20 19880 PATRICIA GARCIA Ref002571568 11/08/19 4,791.59 2054616 07/15/20 19310 PALM LAUNDRY INC OWD017 06/30/20 TOWEL LAUNDRY SERVICE 136.50 136.50 1,056.16 1,056.16 2054541 07/01/20 18562 PACIFIC WESTERN BANK 3006032020 06/04/20 RET/PACIFIC HYDRO A#5733 (ENDING 6/3/20)4,791.59 INVENTORY 1,524.67 1,524.67 2054540 07/01/20 01002 PACIFIC PIPELINE SUPPLY INC S100416757.001 06/22/20 INVENTORY 2054581 07/08/20 01002 PACIFIC PIPELINE SUPPLY INC S100416904.001 06/25/20 559.10 2054539 07/01/20 06646 PACIFIC HYDROTECH CORPORATION 3006032020 06/04/20 870-2 PS REPLACEMENT (ENDING 6/03/20)91,040.06 91,040.06 908.50 908.50 2054538 07/01/20 17527 OTERO, TENILLE 070119063020 06/30/20 MILEAGE REIMBURSEMENT 559.10 UB Refund Cst #0000249764 42.26 42.26 2054537 07/01/20 19636 OT ELECTRIC 10074 06/11/20 POWER TO FLEET SPLIT UNIT 2054484 06/24/20 20256 ONEEKA HAMILTON Ref002596305 06/22/20 7,552.50 2054536 07/01/20 20101 OLDCASTLE INFRASTRUCTURE INC 070253575 06/05/20 METER VAULT REPLACEMENT TOP 14,314.61 14,314.61 57.09 57.09 2054615 07/15/20 18332 NV5 INC 165607 06/21/20 ENGINEERING DESIGN (APRIL 2020)7,552.50 PLAN CHECK SERVICES (ENDING 5/31/20)8,809.00 8,809.00 2054580 07/08/20 20269 NICOLE DEMAKIS Ref002596475 07/06/20 UB Refund Cst #0000047932 2054614 07/15/20 19824 MURRAYSMITH INC 192656005 06/26/20 80.71 2054613 07/15/20 16608 MICHAEL BAKER INT'L INC 1087678 06/26/20 ENGINEERING DESIGN (11/26/19-3/31/20)7,175.00 7,175.00 2054483 06/24/20 20251 MERCY SALICE Ref002596300 06/22/20 UB Refund Cst #0000208967 80.71 Page 8 of 12 Check Total Amount CHECK REGISTER Otay Water District Date Range: 6/18/2020 - 7/22/2020 Check #Date Vendor Vendor Name Invoice Inv. Date Description 68,645.39 39,935.96 163,659.79 35,156.72 110.00 110.00 CERTIFICATION RENEWAL 60.00 60.00 2054548 07/01/20 05755 STATE WATER RESOURCES 33636120PP 06/01/20 CERTIFICATION RENEWAL 8321070220 06/17/20 PROPERTY LIABILITY DEDUCTIBLE 2,676.58 2054650 07/22/20 05755 STATE WATER RESOURCES 304249120CT 07/16/20 50,000.00 50,000.00 2054587 07/08/20 03516 SPECIAL DISTRICT RISK 803907022020 05/20/20 PROPERTY LIABILITY DEDUCTIBLE 32,480.14 PROPERTY/LIABILITY PROGRAM/ADDED ITEMS 1,742.10 1,742.10 2054547 07/01/20 03516 SPECIAL DISTRICT RISK 8166122419 03/23/20 PROPERTY LIABILITY DEDUCTIBLE 2054622 07/15/20 03516 SPECIAL DISTRICT RISK 68906 06/30/20 2,586.00 2054546 07/01/20 04831 SOUTHWESTERN COMM COLLEGE WOD0243 10/30/18 WORK ORDER REFUND D0243-090249 157.18 157.18 55,864.17 55,864.17 2054621 07/15/20 11618 SOUTH COAST COPY SYSTEMS 2231-05585 06/17/20 UNIFLOW SMB IRC2225 AND IRC3530 2,586.00 UB Refund Cst #0000249265 38.11 38.11 2054586 07/08/20 17643 SOFTWARE ONE INC US-SCO-759040 07/01/20 MS SOFTWARE MAINTENANCE 2054493 06/24/20 19470 SKII FLEETON Ref002545756 03/29/19 115.50 2054585 07/08/20 20278 SHEA HOMES LP Ref002596486 07/06/20 UB Refund Cst #0000260758 1,389.93 1,389.93 9,999.00 9,999.00 2054492 06/24/20 19359 SHANON STEDNITZ Ref002537440 02/04/19 UB Refund Cst #0000092358 115.50 SUBSCRIPTION RENEWAL 715.44 715.44 2054620 07/15/20 18869 SCHNEIDER ELECTRIC SYSTEMS INC 42520361-003 07/08/20 CIRCUIT BREAKER TESTING 2054619 07/15/20 16744 SAN DIEGO UNION TRIBUNE 486355221 07/09/20 106,084.45 062620A 06/26/20 UTILITY EXPENSES (MONTHLY)55,273.29 062620B 06/26/20 UTILITY EXPENSES (MONTHLY)2,302.05 UTILITY EXPENSES (MONTHLY)240.48 240.48 2054618 07/15/20 00121 SAN DIEGO GAS & ELECTRIC 070620 07/06/20 UTILITY EXPENSES (MONTHLY) 070220 07/02/20 UTILITY EXPENSES (MONTHLY)547.73 2054491 06/24/20 00121 SAN DIEGO GAS & ELECTRIC 061920 06/19/20 UTILITY EXPENSES (MONTHLY)23,239.68 062920A 06/29/20 UTILITY EXPENSES (MONTHLY)16,148.55 2054584 07/08/20 00121 SAN DIEGO GAS & ELECTRIC 062920 06/29/20 062620 06/26/20 UTILITY EXPENSES (MONTHLY)1,361.64 062420 06/24/20 UTILITY EXPENSES (MONTHLY)1,137.13 062320 06/23/20 UTILITY EXPENSES (MONTHLY)25,519.78 6157061920 06/19/20 UTILITY EXPENSES (MONTHLY)13,262.62 15.00 2054545 07/01/20 00121 SAN DIEGO GAS & ELECTRIC 062520 06/25/20 UTILITY EXPENSES (MONTHLY)27,364.22 22,374.07 22,374.07 2054490 06/24/20 03231 SAN DIEGO EAST COUNTY 194864 06/18/20 SUPPLIES 15.00 INVEST ADVISOR SVCS - DEFERRED COMP 5,750.00 5,750.00 2054583 07/08/20 19633 SAMSARA NETWORKS INC.S-234597 07/01/20 GPS FLEET MANAGEMENT SYSTEM 2054489 06/24/20 19377 SAGEVIEW ADVISORY GROUP LLC 202010698 06/15/20 Page 9 of 12 Check Total Amount CHECK REGISTER Otay Water District Date Range: 6/18/2020 - 7/22/2020 Check #Date Vendor Vendor Name Invoice Inv. Date Description 5,177.25 11,457.70 738.93 549.92 6,600.00 89.45 89.45 2054555 07/01/20 15807 WATCHLIGHT CORPORATION 669418 04/21/20 ALARM EQUIP INSTALL - TREATMENT PLANT 6,942.39 CMIS (MAY 2020)1,639.00 1,639.00 2054498 06/24/20 19511 VICTORIA KRIVOGORSKY Ref002548301 04/29/19 UB Refund Cst #0000081607 2054554 07/01/20 08028 VALLEY CONSTRUCT MANAGEMENT SD199003 06/03/20 2,200.00 3666 03/31/20 SCAFFOLDING RENTAL 2,200.00 3667 03/31/20 SCAFFOLDING RENTAL 2,200.00 PORT. TOILET RENTAL 98.91 98.91 2054553 07/01/20 15392 UP N DOWN SCAFFOLD CO INC 3665 03/31/20 SCAFFOLDING RENTAL 2054497 06/24/20 15675 UNITED SITE SERVICES INC 114-10456395 06/09/20 PORT. TOILET RENTAL 439.85 114-10456398 06/09/20 PORT. TOILET RENTAL 110.07 2054552 07/01/20 15675 UNITED SITE SERVICES INC 114-10456531 06/09/20 114-10580352 06/30/20 PORT. TOILET RENTAL 98.91 114-10563311 06/30/20 PORT. TOILET RENTAL 90.10 PORT. TOILET RENTAL 439.85 114-10580355 06/30/20 PORT. TOILET RENTAL 110.07 2054653 07/22/20 15675 UNITED SITE SERVICES INC 114-10580495 06/30/20 72.13 2054624 07/15/20 03261 TYLER TECHNOLOGIES INC 045-303612 06/01/20 FINANCIAL MGMT ERP SFTWR MAINT & SUPP 135,583.56 135,583.56 17.31 17.31 2054496 06/24/20 20250 TOM SANTOS Ref002596299 06/22/20 UB Refund Cst #0000125112 72.13 UB Refund Cst #0000258369 135.63 135.63 2054502 07/01/20 18729 THOMAS ENGELHORN Ref002571557 11/08/19 UB Refund Cst #0000046967 2054495 06/24/20 20262 THERESA BURNS Ref002596311 06/22/20 9.26 2054551 07/01/20 19272 THARSOS INC 505312020 06/04/20 TLOPS REDUNDANCY PROJ (ENDING 5/31/20)93,645.06 93,645.06 190.00 190.00 2054494 06/24/20 20246 TAMRA APPLEMAN Ref002596295 06/22/20 UB Refund Cst #0000035311 9.26 RED DYED DIESEL FUEL TREATMENT PLANT 5,845.86 5,845.86 2054550 07/01/20 18922 TAMAYO, JUAN 062520 06/25/20 EXPENSE REIMBURSEMENT 2054623 07/15/20 10339 SUPREME OIL COMPANY 485235 06/18/20 06/10/20 UNLEADED FUEL 8,014.13 484788 06/10/20 DIESEL 3,443.57 2,803.23 101225528-002 06/22/20 PORTABLE AC RENTAL & SERVICES 2,374.02 2054589 07/08/20 10339 SUPREME OIL COMPANY 484787 CUSTOMER REFUND 1,871.31 1,871.31 2054652 07/22/20 12223 SUNBELT RENTALS INC 101225528-001 05/25/20 PORTABLE AC RENTAL & SERVICES 2054549 07/01/20 20267 SUHALE MATTI 542006302020 06/30/20 60.00 2054651 07/22/20 20291 STEPHEN LEPPER Ref002600989 07/20/20 UB Refund Cst #0000207160 143.10 143.10 110.00 110.00 2054588 07/08/20 05755 STATE WATER RESOURCES 30425070220RP 07/02/20 CERTIFICATION RENEWAL 60.00 2054548 07/01/20 05755 STATE WATER RESOURCES 33636120PP 06/01/20 CERTIFICATION RENEWAL Page 10 of 12 Check Total Amount CHECK REGISTER Otay Water District Date Range: 6/18/2020 - 7/22/2020 Check #Date Vendor Vendor Name Invoice Inv. Date Description 13,836.91 673160 05/14/20 SUNSET-LTE CONV - BATTERY UPGRADE 858.97 669614 04/27/20 SUNSET-LTE CONV - BATTERY UPGRADE 861.94 669704 04/29/20 SUNSET-LTE CONV - BATTERY UPGRADE 861.94 673147 05/14/20 SUNSET-LTE CONV - BATTERY UPGRADE 938.61 673148 05/14/20 SUNSET-LTE CONV - BATTERY UPGRADE 861.94 669626 04/27/20 SUNSET-LTE CONV - BATTERY UPGRADE 969.99 669608 04/27/20 SUNSET-LTE CONV -BATTERY UPGRADE 969.94 669615 04/27/20 SUNSET-LTE CONV - BATTERY UPGRADE 977.99 669623 04/27/20 SUNSET-LTE CONV - BATTERY UPGRADE 975.20 677001 06/10/20 SUNSET-LTE CONV - BATTERY UPGRADE 1,010.50 673153 05/14/20 SUNSET-LTE CONV - BATTERY UPGRADE 1,006.83 677010 06/10/20 SUNSET-LTE CONV - BATTERY UPGRADE 1,043.29 669709 04/29/20 SUNSET-LTE CONV - BATTERY UPGRADE 1,039.42 673145 05/14/20 SUNSET-LTE CONV - BATTERY UPGRADE 1,074.97 673152 05/14/20 SUNSET-LTE CONV - BATTERY UPGRADE 1,074.97 669710 04/29/20 SUNSET-LTE CONV - BATTERY UPGRADE 1,122.17 669412 04/21/20 SUNSET-LTE CONV - BATTERY UPGRADE 1,114.83 677004 06/10/20 SUNSET-LTE CONV - BATTERY UPGRADE 1,200.84 677003 06/10/20 SUNSET-LTE CONV - BATTERY UPGRADE 1,124.01 666286 04/09/20 SUNSET-LTE CONV - BATTERY UPGRADE 1,262.61 673738 06/01/20 SUNSET-LTE CONV - BATTERY UPGRADE 1,227.05 669492 04/23/20 SUNSET-LTE CONV - BATTERY UPGRADE 1,306.28 673155 05/14/20 SUNSET-LTE CONV - BATTERY UPGRADE 1,298.79 669799 05/01/20 SUNSET-LTE CONV - BATTERY UPGRADE 1,350.23 669229 04/15/20 SUNSET-LTE CONV - BATTERY UPGRADE 1,341.90 666037 04/01/20 SUNSET-LTE CONV - BATTERY UPGRADE 1,577.04 669706 04/29/20 SUNSET-LTE CONV - BATTERY UPGRADE 1,493.29 666035 04/01/20 SUNSET-LTE CONV - BATTERY UPGRADE 1,939.74 677009 06/10/20 SUNSET-LTE CONV - BATTERY UPGRADE 1,610.74 0.00 2054591 07/08/20 15807 WATCHLIGHT CORPORATION 669801 05/01/20 SUNSET-LTE CONV - BATTERY UPGRADE 2,236.07 669233 04/15/20 ALARM EQUIP INSTALL - TREATMENT PLANT 432.00 2054590 07/08/20 15807 WATCHLIGHT CORPORATION 0.00 666297 04/09/20 SECURITY EQUIP MAINTENANCE 3,929.60 675671 06/15/20 SECURITY ALARM MONITORING 2,532.92 2054555 07/01/20 15807 WATCHLIGHT CORPORATION 669418 04/21/20 ALARM EQUIP INSTALL - TREATMENT PLANT 6,942.39 Page 11 of 12 Check Total Amount CHECK REGISTER Otay Water District Date Range: 6/18/2020 - 7/22/2020 Check #Date Vendor Vendor Name Invoice Inv. Date Description 48,892.29 3,929.94 500.00 178.98 Amount Pd Total:2,372,146.84 Check Grand Total:2,372,146.84 780.00 780.00 2054499 06/24/20 19036 YOLANDA ARAIZA Ref002517356 09/04/18 UB Refund Cst #0000176855 178.98 AS-NEEDED BEE REMOVAL SVCS 125.00 125.00 2054626 07/15/20 08023 WORKTERRA 0097330 06/30/20 EMPLOYEE BENEFITS 2054625 07/15/20 01343 WE GOT YA PEST CONTROL INC 34012 06/18/20 250.00 33870 06/05/20 AS-NEEDED BEE REMOVAL SVCS 125.00 32987 05/08/20 AS-NEEDED BEE REMOVAL SVCS 125.00 GARDEN FUNDING CONTRIBUTION 20,691.00 20,691.00 2054556 07/01/20 01343 WE GOT YA PEST CONTROL INC 33821 06/02/20 AS-NEEDED BEE REMOVAL SVCS 669410 04/21/20 ALARM & ACCESS MAINTENANCE 108.00 2054592 07/08/20 14879 WATER CONSERVATION GARDEN JPA 9502 07/01/20 673735 06/01/20 ALARM & ACCESS MAINTENANCE 858.97 669588 04/27/20 ALARM & ACCESS MAINTENANCE 225.00 ALARM & ACCESS MAINTENANCE 1,511.47 666290 04/09/20 ALARM & ACCESS MAINTENANCE 1,226.50 2054654 07/22/20 15807 WATCHLIGHT CORPORATION 673739 06/01/20 669230 04/15/20 SUNSET-LTE CONV - BATTERY UPGRADE 597.17 673804 06/03/20 SUNSET-LTE CONV - BATTERY UPGRADE 442.24 669796 05/01/20 SUNSET-LTE CONV - BATTERY UPGRADE 705.17 669713 04/29/20 SUNSET-LTE CONV - BATTERY UPGRADE 623.27 669797 05/01/20 SUNSET-LTE CONV - BATTERY UPGRADE 774.10 669493 04/23/20 SUNSET-LTE CONV - BATTERY UPGRADE 748.00 669420 04/21/20 SUNSET-LTE CONV - BATTERY UPGRADE 817.71 673811 06/03/20 SUNSET-LTE CONV - BATTERY UPGRADE 780.59 673802 06/03/20 SUNSET-LTE CONV - BATTERY UPGRADE 856.00 673737 06/01/20 SUNSET-LTE CONV - BATTERY UPGRADE 823.95 669617 04/27/20 SUNSET-LTE CONV - BATTERY UPGRADE 856.00 673807 06/03/20 SUNSET-LTE CONV - BATTERY UPGRADE 856.00 669413 04/21/20 SUNSET-LTE CONV - BATTERY UPGRADE 856.00 669414 04/21/20 SUNSET-LTE CONV - BATTERY UPGRADE 856.00 673157 05/14/20 SUNSET-LTE CONV - BATTERY UPGRADE 856.00 669711 04/29/20 SUNSET-LTE CONV - BATTERY UPGRADE 856.00 673159 05/14/20 SUNSET-LTE CONV - BATTERY UPGRADE 856.00 Page 12 of 12