HomeMy WebLinkAbout02-07-18 Board Packet 1
OTAY WATER DISTRICT
BOARD OF DIRECTORS MEETING
DISTRICT BOARDROOM
2554 SWEETWATER SPRINGS BOULEVARD
SPRING VALLEY, CALIFORNIA
WEDNESDAY
February 7, 2018
3:30 P.M.
AGENDA
1. ROLL CALL
2. PLEDGE OF ALLEGIANCE
3. APPROVAL OF AGENDA
4. APPROVE THE MINUTES OF THE REGULAR BOARD MEETING ON NOVEMBER 1,
2017
5. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO
SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JURIS-
DICTION BUT NOT AN ITEM ON TODAY'S AGENDA
CONSENT CALENDAR
6. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST IS
MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PARTICU-
LAR ITEM:
a) APPROVE AN AGREEMENT BETWEEN THE SAN DIEGO COUNTY WATER
AUTHORITY AND OTAY WATER DISTRICT REGARDING COMPLETION OF
THE EAST COUNTY REGIONAL TREATED WATER IMPROVEMENT PRO-
GRAM
b) APPROVE THE TERMINATION OF A CONSTRUCTION AGREEMENT TO
ORTIZ CORPORATION FOR THE FUERTE DRIVE SEWER RELOCATION PRO-
JECT (CIP S2045) THAT WAS AWARDED AT THE SEPTEMBER 6, 2017,
BOARD MEETING IN AN AMOUNT NOT-TO-EXCEED $147,650.00
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c) ADOPT RESOLUTION NO. 4342 DESIGNATING DISTRICT STAFF WITH THE
AUTHORITY TO ORDER THE DEPOSIT OR WITHDRAWAL OF FUNDS WITH
THE LOCAL AGENCY INVESTMENT FUND
d) APPROVE THE DECLARATION OF 2.539 ACRES OF REAL ESTATE PROP-
ERTY LOCATED ALONG THE FUTURE ALIGNMENT OF ALTA ROAD ON OTAY
MESA AS SURPLUS; AND ACCEPT AN OFFER FROM KEARNY PCCP OTAY
311, LLC, A DELAWARE LIMITED LIABILITY COMPANY TO PURCHASE 2.539
ACRES OF THE LAND FOR $691,475.00 AND ACCEPT A GRANT OF EASE-
MENT THAT SECURES THE OTAY WATER DISTRICT’S PRIOR PROPERTY
RIGHTS
e) APPROVE A FOURTH AMENDMENT TO EXTEND THE SVPR COMMUNICA-
TIONS’ CONTRACT FOR AN ADDITIONAL TWENTY-FOUR (24) MONTHS
THROUGH JANUARY 31, 2020; AND INCREASE THE CONTRACT AMOUNT BY
$60,000, WITH AN AMOUNT NOT-TO-EXCEED $135,000
ACTION ITEMS
7. FINANCE AND ADMINISTRATION
a) APPROVE AN ENGAGEMENT LETTER WITH THE AUDITING FIRM OF
TEAMAN, RAMIREZ AND SMITH, INC., TO PROVIDE AUDIT SERVICES TO
THE DISTRICT FOR THE FISCAL YEAR ENDING JUNE 30, 2018 (BELL)
8. PUBLIC RELATIONS, LEGAL AND LEGISLATIVE
a) ADOPT THE 2018 OTAY WATER DISTRICT LEGISLATIVE PROGRAM GUIDE-
LINES AND PRIORITIES (OTERO)
9. BOARD
a) DISCUSSION OF THE 2018 BOARD MEETING CALENDAR
REPORTS
10. GENERAL MANAGER’S REPORT
11. SAN DIEGO COUNTY WATER AUTHORITY UPDATE
12. DIRECTORS' REPORTS/REQUESTS
13. PRESIDENT’S REPORT/REQUESTS
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RECESS TO CLOSED SESSION
14. CLOSED SESSION
a) CONFERENCE WITH LABOR NEGOTIATORS [GOVERNMENT CODE
§54957.6]
AGENCY DESIGNATED REPRESENTATIVES: MARK ROBAK AND TIM SMITH
EMPLOYEE ORGANIZATION: OTAY WATER DISTRICT EMPLOYEES’ ASSOCI-
ATION
AND
ALL REPRESENTED AND UNREPRESENTED PERSONNEL INCLUDING MAN-
AGEMENT AND CONFIDENTIAL EMPLOYEES
b) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOVERN-
MENT CODE §54956.9]
OTAY WATER DISTRICT v. CITY OF SAN DIEGO; CASE NO. 37-2017-
00019348-CU-WM-CTL
RETURN TO OPEN SESSION
15. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY ALSO
TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION
16. ADJOURNMENT
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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 February 2, 2018, I posted a copy of the foregoing agenda near the regu-
lar meeting place of the Board of Directors of Otay Water District, said time being at least 72
hours in advance of the regular meeting of the Board of Directors (Government Code Section
§54954.2).
Executed at Spring Valley, California on February 2, 2018.
/s/ Susan Cruz, District Secretary
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MINUTES OF THE
BOARD OF DIRECTORS MEETING OF THE
OTAY WATER DISTRICT
November 1, 2017
1. The meeting was called to order by President Robak at 3:33 p.m.
2. ROLL CALL
Directors Present: Gastelum, Robak, Smith and Thompson
Directors Absent: Croucher (pre-scheduled vacation)
Staff Present: General Manager Mark Watton, Attorney Jeanne
Blumenfeld, Chief of Engineering Rod Posada, Chief
Financial Officer Joe Beachem, Chief of Administration
Adolfo Segura, Chief of Operations Pedro Porras, Asst.
Chief of Operations Jose Martinez, Assistant Chief of
Finance Kevin Koeppen, District Secretary Susan Cruz and
others per attached list.
3. PLEDGE OF ALLEGIANCE
4. APPROVAL OF AGENDA
A motion was made by Director Smith, and seconded by Director Thompson and
carried with the following vote:
Ayes: Directors Gastelum, Robak, Smith and Thompson
Noes: None
Abstain: None
Absent: Directors Croucher
to approve the agenda.
5. APPROVE THE MINUTES OF THE REGULAR BOARD MEETING ON AUGUST
2, 2017
A motion was made by Director Thompson, and seconded by Director Gastelum
and carried with the following vote:
Ayes: Directors Gastelum, Robak and Thompson
Noes: None
Abstain: Director Smith
Absent: Directors Croucher
to approve the minutes of the regular board meetings of August 2, 2017.
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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. Matthew Bagdasar, an Executive Intern for Senator Joel Anderson’s Office,
wished to share that the Senator is holding his last (Senator Anderson terms out
in November) Legislative Open House on Tuesday, December 12, from 6:00 p.m.
to 8:00 p.m. at the Toyota of El Cajon dealership. He wished to meet with his
constituents to hear any issues they may have.
CONSENT CALENDAR
7. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST
IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A
PARTICULAR ITEM:
A motion was made by Director Smith, seconded by Director Thompson and
carried with the following vote:
Ayes: Directors Gastelum, Smith, Robak and Thompson
Noes: None
Abstain: None
Absent: Directors Croucher
to approve the following consent calendar items:
a) APPROVE A TWO-YEAR AGREEMENT WITH SUNLIFE TO PROVIDE
LIFE, ACCIDENTAL DEATH AND DISMEMBERMENT, AND
VOLUNTARY LIFE INSURANCE COVERAGE FROM JANUARY 1, 2018
THROUGH DECEMBER 31, 2019
b) ADOPT RESOLUTION NO. 4340, AMENDING POLICY NO. 21 FOR THE
SELECTION OF PROFESSIONAL CONSULTANTS OF THE DISTRICT’S
CODE OF ORDINANCES, TO ALLOW THE PROJECT MANAGER TO
PARTICIPATE AS A PANEL MEMBER DURING THE SELECTION
PROCESS AND TO MODIFY THE METHOD OF SELECTION OF
PROFESSIONAL CONSULTANTS FOR MINOR ENGINEERING
PROJECTS WITH FEES UP TO $50,000
c) APPROVE THE CREATION OF A CAPITAL IMPROVEMENT PROGRAM
PROJECT (CIP P2625) FOR THE DESIGN AND CONSTRUCTION OF A
12-INCH, 978 ZONE PIPELINE IN HIDDEN MESA ROAD IN THE
AMOUNT OF $1.5 MILLION OF WHICH $90,000 IS IN THE CURRENT
FISCAL YEAR CIP BUDGET
ACTION ITEMS
8. FINANCE AND ADMINISTRATION
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a) APPROVE THE AUDITED FINANCIAL STATEMENTS, INCLUDING THE
INDEPENDENT AUDITORS’ UNQUALIFIED OPINION, FOR FISCAL
YEAR ENDED JUNE 30, 2017
Senior Accountant Marissa Dychitan indicated that staff is recommending that
the Board approve the District’s audited financial statements, including the
Independent Auditors’ unqualified opinion for the fiscal year (FY) ended June 30,
2017. She stated that Teaman, Ramirez & Smith, Inc. performed the audit and
found that, in all material respects, the financial statements correctly represent
the financial position of the District. Please reference the Committee Action notes
(Attachment A) attached to the staff report for further details of Ms. Dichitan’s and
the Auditor’s (Mr. Rich Teaman’s) report.
The board asked questions regarding the CalPers pension liability, GASB 92
changes and calculating the OPEB (Other Post Employee Benefits) liability. Staff
and Mr. Teaman responded to the board’s inquiries.
A motion was made by Director Smith, and seconded by Director Thompson and
carried with the following vote:
Ayes: Directors Gastelum, Robak Smith and Thompson
Noes: None
Abstain: None
Absent: Directors Croucher
to approve the Audited Financial Statements, including the Independent Auditors’
unqualified opinion, for fiscal year ended June 30, 2017.
9. BOARD
a) ADOPT RESOLUTION NO. 4341 OF THE OTAY WATER DISTRICT
BOARD OF DIRECTORS SUPPORTING MUNICIPAL WATER SYSTEMS
THROUGH THE ELIMINATION OF THE PURCHASE AND USE OF
BOTTLED WATER EXCEPT IN TIMES OF EMERGENCY WHEN
MUNICIPAL WATER IS NOT AVAILABLE
President Robak indicated as Director Croucher is on prescheduled vacation, he
would like to defer this item to a future meeting to allow Director Croucher to
participate in the discussion.
He stated that a request to speak on this item has been received and asked the
speaker if she still wished to speak on this item.
Ms. Kathleen Hedberg, a customer residing in La Mesa and a member of the
Helix WD board, indicated that she applauded the District for presenting
Resolution No. 4341. She stated that she appreciated the bottled water
companies for providing bottled water as it provided a healthier alternative for
4
portable drinks. She stated, however, with the invention of water refill stations,
which are now being installed in public places around the County, water agencies
should be encouraging people to take their drinking containers and refill them
instead of purchasing bottled water. She stated that she feels that the Otay
WD’s interest in installing a water bottle filling station is a great step forward and
she will be bringing a similar resolution to the Helix WD board once Otay WD has
adopted their resolution. She feels filling stations are a step in the right direction
and supports the Otay WD’s resolution.
She also shared that she is mentoring a student at Valhalla High School who is
working on her Girl Scout Leadership Award (similar to the Boy Scout’s Eagle
Scout Award) and her goal is to install a water bottle filling station at Valhalla
High School.
A motion was made by Director Thompson, and seconded by President Robak
and carried with the following vote:
Ayes: Directors Gastelum, Robak Smith and Thompson
Noes: None
Abstain: None
Absent: Directors Croucher
to defer this item to the next board meeting.
b) DISCUSSION OF 2017 BOARD MEETING CALENDAR
President Robak indicated that he would like to schedule a board retreat
workshop in December and has reached out to a consultant to facilitate at the
meeting. He asked District Secretary Cruz to schedule a special meeting
sometime in December.
INFORMATIONAL ITEM
10. THE FOLLOWING ITEMS ARE PROVIDED TO THE BOARD FOR
INFORMATIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE
FOLLOWING AGENDA ITEMS:
a) REVIEW OF THE ACTUARIAL REPORT AND NET COST OF THE
ENHANCEMENT OF THE RETIREE HEALTHCARE BENEFITS
Accounting Manager Rita Bell indicated that this an informational report on the
net cost of the OPEB enhancement. She stated the District is required to
perform an actuarial report every two (2) years to determine the cost of the
OPEB Plan. She indicated that the actuarial study was performed by Marilyn
Jones of Nyhart and the valuation presented today covers fiscal years 2018 and
2019 (as of June 30, 2107). The prior study was performed as of June 30, 2015.
Please reference the Committee Action notes (Attachment A) attached to the
staff report for further details of Mss. Bell’s and Jones’ report.
5
In response to an inquiry from Director Smith, it was indicated that the District’s
employees are paying 7% of their salary into PERS in exchange for the retiree
medical benefit. This payment is applied to the OPEB fund. It was noted that
employees must work up to 15 to 20 years at the District to earn the benefit and,
thus, not all employees will earn the benefit though they are contributing to it.
Director Thompson indicated that he would like to refer to committee a review of
the impact of the policy on the retirement age of employees. He stated that he
felt it may encourage highly competent employees to decide to retire earlier than
is in the public’s best interest and he would like a review of the policy at either the
Ad Hoc Employee Negotiations Committee or one of the Board’s long term
committees.
REPORTS
The board waived presentation of the following reports:
11. GENERAL MANAGER’S REPORT
General Manager Watton presented information from his report which included
an update on the upcoming employee holiday dinner, the San Miguel Fire
Protection District inspection, the 870-2 pump station replacement project, lead
testing for K-12 schools, Mexico’s request for a water transfer in February 2018,
and potable and recycled water sales.
12. CWA REPORT
Director Smith indicated that CWA’s Engineering and Operations Committee has
approved the Mission Trails Flow Regulatory Structure which will save CWA $23
million. He noted in the Water Planning Committee it was indicated that CWA
staff is working with the regulatory agencies as mercury from the air is being
absorbed by the water in open reservoirs. The mercury can bio accumulate from
little fish to large fish (larger fish eating smaller fish) and if the large fish are
above the maximum contaminant level and are consumed by humans, they could
get mercury poisoning or possibly cancer. There is discussion occurring on how
to address this issue and it is recognized that it is a very difficult problem to
address as the mercury is not entering reservoirs through run-off water, but
through the air. It was indicated that, potentially, fishing could be limited in all
reservoirs. He lastly shared that the “Water Fix/Twin Tunnels” proposal has
been approved by the MWD board. He noted that CWA has four (4)
representatives on MWD’s board and two (2) of the representatives voted “no”
mainly because they wished to change the motion. The remaining two (2) CWA
representatives abstained from the vote because they did not feel they had
enough information to make a decision on the proposal. He noted that CWA’s
representatives are not advised by CWA on how they should vote. The
representatives are free to vote however they wish on the issues presented at
MWD’s board meetings.
6
13. DIRECTORS' REPORTS/REQUESTS
Director Smith reported that he attended the District’s regular board meeting, the
Engineering, Operations and Water Resources Committee meeting, and met with
the General Manager to review objectives for next year.
14. PRESIDENT’S REPORT
President Robak reported on the meetings he attended during the month of
October 2017 (his report is attached). He shared that this morning he attended
the WateReuse San Diego Chapter Meeting which was hosted at the Otay Water
District. He stated that General Manager Watton presented at the meeting and
the meeting was followed by a tour of the District’s Ralph W. Chapman Water
Recycling Facility. He also presented a video titled, “The Story of Bottled Water,”
with Annie Leonard.
15. CLOSED SESSION
The board recessed to closed session at 4:24 p.m. to discuss the following
matters:
a) CONFERENCE WITH LABOR NEGOTIATORS [GOVERNMENT CODE
§54957.6]
AGENCY DESIGNATED REPRESENTATIVES: MARK ROBAK AND TIM
SMITH
EMPLOYEE ORGANIZATION: OTAY WATER DISTRICT EMPLOYEES’
ASSOCIATION
AND
ALL REPRESENTED AND UNREPRESENTED PERSONNEL
INCLUDING MANAGEMENT AND CONFIDENTIAL EMPLOYEES
b) CONFERENCE WITH REAL PROPERTY NEGOTIATORS
[GOVERNMENT CODE §54956.8]
PROPERTY: SALT CREEK GOLF COURSE
525 HUNTE PARKWAY
CHULA VISTA, CA 91914
AGENCY NEGOTIATOR: MARK WATTON, GENERAL MANAGER
NEGOTIATING PARTIES: BILL McWETHY, PACIFIC HOSPITALITY
GROUP
7
UNDER NEGOTIATIONS: INSTRUCT NEGOTIATOR CONCERNING
PRICE, TERMS OF PAYMENT, OR BOTH, FOR THE PURCHASE, SALE
AND/OR LEASE OF THE PROPERTY.
c) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
[GOVERNMENT CODE §54956.9]
OTAY WATER DISTRICT v. CITY OF SAN DIEGO; CASE NO. 37-2017-
00019348-CU-WM-CTL
The board reconvened from closed session at 6:50 p.m. Attorney Jeanne
Blumenfeld indicated that the board met in closed session and took no reportable
actions.
16. ADJOURNMENT
With no further business to come before the Board, President Robak adjourned
the meeting at 6:50 p.m.
___________________________________
President
ATTEST:
District Secretary
8
President’s Report
Mark Robak
November 1, 2017
Board Meeting
# Date Meeting Purpose
1 4-Oct OWD Regular Board Meeting Monthly board meeting
2 5-Oct Metro JPA Meeting Monthly commission meeting
3 12-Oct OWD Employee Recognition
Luncheon
Event recognizing OWD employees'
achievements
4 13-Oct Committee Agenda Briefing
Met with General Manager Watton to
review items that will be presented at the
October committee meetings.
5 15-Oct JamulFest Annual community event and parade
6 16-Oct Water Conservation Garden Governance meeting
7 17-Oct Finance, Administration and
Communications Committee
Reviewed items that will be presented at
the November board meeting.
8 18-Oct SD Committee Water for People
10th Annual Meeting Represent District at the Event
9 20-Oct Presentation to Hillsdale Middle
School 6th grade class Talked about District and sources of water
10 27-Oct Board Agenda Briefing
Met with General Manager Watton and
General Counsel Dan Shinoff to review
items that will be presented at the
November Board Meeting.
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: February 7, 2018
SUBMITTED BY: Jeff Marchioro
Senior Civil Engineer
Bob Kennedy
Engineering Manager
CIP./G.F. NO: P1503-
001000
DIV. NO. ALL
APPROVED BY:
Rod Posada, Chief, Engineering
Mark Watton, General Manager
SUBJECT: Approval of an Agreement Between the San Diego County Water
Authority and Otay Water District Regarding Completion of the
East County Regional Treated Water Improvement Program
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District (District) Board of Directors
(Board) approves the Agreement Between the San Diego County
Water Authority and Otay Water District Regarding Completion of
the East County Regional Treated Water Improvement Program
(ECRTWIP).
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To obtain Board approval of an Agreement Between the San Diego
County Water Authority and Otay Water District Regarding
Completion of the East County Regional Treated Water Improvement
Program (see Attachment B for Agreement).
ANALYSIS:
On February 15, 2006, the San Diego County Water Authority
(Water Authority) approved an agreement with Helix Water
2
District (Helix), Padre Dam Municipal Water District (Padre
Dam), Otay Water District (Otay), and Lakeside/Riverview Water
Districts (Lakeside) regarding implementation of the East County
Regional Treated Water Improvements Program (ECRTWIP) that
significantly improved the local water treatment capacity in the
East County. The ECRTWIP is a comprehensive integrated program
of capital improvements and usage guarantees involving the Water
Authority, Helix, Otay, Padre Dam, and Lakeside. In order for
the regional benefit of the program to be developed, each party
involved in the program constructed the facilities designated as
its responsibility in the program, and each water-purchasing
agency purchased quantities of water as designated under the
East County Agreements. The capital investment by the Water
Authority in this program is being paid back by the cost
difference between the operating charges for treatment by Helix
and the Water Authority’s full melded treated water rates. This
new Agreement will terminate the 2006 ECRTWIP Agreement with the
minimum demand provision of 10,000 acre-feet per year and
replace it with this Agreement that will terminate once the
payment obligations with the Water Authority are met.
The growing difference between the operating charges from
treatment by Helix and the Water Authority’s full melded treated
water rate has accelerated the payback of the District’s portion
of the total Water Authority investment reducing the $9.987
million in capital expenditures to approximately $4.8 million at
the end of 2017. At this rate, the Water Authority will be paid
back in full sometime in 2022 which will trigger the termination
of this replacement agreement.
When the original agreement was prepared, it was expected 10,000
AFY would pay back the Water Authority about 40% of their
investment in this agreement and earlier agreements. It is the
growing difference between the Water Authority’s all in rate and
the actual cost of the treated water from Helix that allowed the
District to negotiate with the Water Authority for a replacement
agreement.
This replacement agreement eliminates the take or pay guarantee
and adds a termination date. This will eliminate monthly
reports to the Water Authority on estimated demands and annual
requests for an adjustment to the minimum take or pay due to the
droughts and conservation impacting demand. At the time the
original agreement was signed, demand in the north was about
13,500 AFY. For calendar year 2017, the District received 8,602
AF for the northern service area. Other benefits for the
District and the region include having the flexibility to take
3
water from other flow control facilities. This could improve
water quality on the Water Authority’s Pipeline Four if the
District is allowed to shift flows in the summer months.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
Each year the District was not able to meet the minimum 10,000
AFY take or pay amount, the District was able to negotiate an
adjustment so that the District did not have to compensate the
Water Authority per the terms of the original agreement. The
District has only met the 10,000 AFY minimum in calendar years
2012, 2013, and 2014. If the take or pay provision of the
original agreement was enforced, for calendar year 2017, the
additional cost to the District would have been approximately
$234,864.
This replacement agreement gives the District until December
2028 to satisfy the payback requirement, six years from the
projected payback date in the replacement agreement.
STRATEGIC GOAL:
This Project supports the District’s Mission statement, “To
provide high value water and wastewater services to the
customers of the Otay Water District in a professional,
effective, and efficient manner” and the General Manager’s
Vision, “A District that is at the forefront in innovations to
provide water services at affordable rates, with a reputation
for outstanding customer service.”
LEGAL IMPACT:
None.
JM/BK/RP/jf
P:\WORKING\CIP P1503 - Water Authority Issues\FCF No.14-ECRTWIP\Staff Report\BD 02-07-2018, Staff
Report, Amendment to the ECRTWIP.doc
Attachments: Attachment A – Committee Action
Attachment B – Agreement Regarding Completion of
the East County Regional Treated Water
Improvement Program
ATTACHMENT A
SUBJECT/PROJECT:
P1503-001000
Approval of an Agreement Between the San Diego County
Water Authority and Otay Water District Regarding
Completion of the East County Regional Treated Water
Improvement Program
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee
(Committee) reviewed this item at a meeting held on January 22,
2018, and the following comments were made:
Staff reviewed the staff report with the Committee and
recommended that the Board approve the Agreement between
the San Diego County Water Authority (CWA) and Otay Water
District Regarding Completion of the East County Regional
Treated Water Improvement Program (ECRTWIP).
The Committee inquired about the ownership of capacity and
infrastructure rights once payment obligations are paid off
by all parties. Staff stated that CWA would be the owner
as the new agreement indicates the following:
“The Water Authority wishes to ensure that the regional
capital investment associated with the East County
Agreements is fully recovered and maintain capacity
rights in the facilities constructed and secured in the
East County Agreements.”
In response to comments and a question from the Committee
regarding the Levy Water Treatment Plant (WTP) owned by the
Helix Water District, staff stated that the County Water
Authority is the responsible party who pays for capital
improvements for the Levy WTP.
The Committee inquired about the replacement agreement’s
reference to a 2006 agreement. Staff noted it referenced a
separate agreement the Water Authority has with Helix and
not the original agreement with the District.
The Committee inquired about the calculation method of
1.83% for inflation and 3.09% for interest rates. Staff
stated that the rates were calculated through negotiations
of all member agencies and their staff who reviewed several
cost analyses from previous years.
Staff stated that this agreement would be a benefit as it
would allow water supply services closer to the District.
In addition, it allows the District and the Water Authority
the flexibility to shift the northerly supply service
between the Water Authority’s pipeline 4 supplied by
Carlsbad desalination, Twin Oaks and MWD’s Skinner WTP or
Helix’s Levy Treatment Plant.
Upon completion of the discussion, the Committee accepted
staffs’ report and supported presentation to the full board as a
consent item.
ATTACHMENT B
Page 1 of 5.
AGREEMENT BETWEEN THE SAN DIEGO COUNTY WATER AUTHORITY AND OTAY WATER DISTRICT REGARDING COMPLETION OF THE EAST COUNTY REGIONAL TREATED WATER IMPROVEMENT PROGRAM
This agreement is made and entered into as of , 2018 between the
San Diego County Water Authority, a county water authority (Water Authority) and
Otay Water District, a water district established under the Municipal Water District Law
of 1911, (Otay), (collectively, the Parties), in view of the following facts:
RECITALS
A. The San Diego County Water Authority and four member agencies, by two party
agreements each between the member agency and the Water Authority (East
County Agreements), entered into the original East County Regional Treated
Water Improvement Program (ECRTWIP) in April 2006. Its purpose was to
significantly improve the regional water treatment capacity by maximizing
utilization of the R.M. Levy Water Treatment Plant (Levy WTP). The agencies
involved in this integrated plan included the Water Authority, Helix Water District
(Helix), Padre Dam Municipal Water District (Padre Dam), Otay, and Lakeside
Water District (Lakeside).
B. The ECRTWIP is a comprehensive integrated program of capital improvements
and usage guarantees involving the Water Authority, Helix, Otay, Padre Dam, and
Lakeside. In order for the regional benefit of the program to be developed, each
party involved in the program constructed the facilities designated as its
responsibility in the program, and each water-purchasing agency purchased
quantities of water as designated under the East County Agreements.
C. The 106 Million Gallon Per Day (MGD) Levy WTP is owned and operated by
Helix, and the Water Authority owns a capacity right in the plant of 36 MGD.
Water treated at Levy is delivered or caused to be delivered by the Water
Authority to Helix, Otay, Padre Dam, and Lakeside through new or modified
facilities constructed as part of the East County Agreements.
D. In consideration of increased delivery to Otay, the East County Agreements
addressed expanded capacity at the Otay 14 Flow Control Facility and a new 36-
Inch Reservoir Pipeline associated with Otay’s water distribution system and the
Los Coches Pump Station, Helix Fume, and expanded Levy WTP capacity rights
associated with Helix’s distribution system.
E. The Water Authority wishes to ensure that the regional capital investment
associated with the East County Agreements is fully recovered and maintain
capacity rights in the facilities constructed and secured in the East County
Agreements.
ATTACHMENT B
Page 2 of 5.
F. Otay wishes to terminate minimum demand commitment of 10,000 acre-feet
established in the East County Agreements; terminate its payment obligations
under this agreement once the Water Authority recovers Otay’s designated capital
investment responsibility, and ensure that all water delivered from the Water
Authority to Otay through the Levy WTP is at the same price for water as is regularly
charged to all other member agencies and under the same terms and conditions as other
member agencies for treated water service during the term of this agreement.
AGREEMENT
The Parties agree as follows.
A. Recitals and Exhibits. The foregoing Recitals are incorporated herein as a
substantive and enforceable part of the Agreement. All Exhibits attached to this
agreement constitute an integral part of this agreement and are fully incorporated
herein.
B. Termination of 2006 East County Agreement with Otay. The Parties agree that the
agreement between the San Diego Water Authority and Otay Water District regarding
implementation of the East County Regional Treated Water Improvement Program
executed on April 26, 2006 as amended is terminated and replaced by this Agreement.
C. Continued Use of Facilities Developed under East County Agreement with Otay. The
Water Authority agrees to continue to operate and maintain the Otay 14 Flow Control
Facility.
D. Continued Use of Conveyance Facilities Developed under East County Agreement with
Helix. The Water Authority agrees to retain conveyance capacity rights to convey treated
water from the Levy WTP to Otay as secured in the agreement between the San Diego
County Water Authority and Helix Water District regarding implementation of the East
County Regional Treated Water Improvement Program executed on April 26, 2006.
These improvements and capacity rights include 12 MGD through the Los Coches Pump
Station and Helix Flume as stated in Paragraphs 4 and 7 of the 2006 agreement with
Helix. The 10 MGD regional capacity secured at Levy WTP as part of the East County
Agreements, will also be retained by the Water Authority. Should the Water Authority
decide to pursue adjustments to its ownership or use of treatment plant capacity at the
Levy WTP, the Water Authority will coordinate with the affected East County
Agreement agencies regarding continued supply and conveyance, prior to any
modification or termination of the 2006 Helix agreement.
E. Financial Obligations of Otay
1. Capital cost allocation associated with the East County Agreements is provided in
Exhibit A and has been agreed to by the Parties. These costs represent the capital
investment that shall be recovered by the Water Authority and includes all capital
investments made by Water Authority per the terms of the East County Agreements
ATTACHMENT B
Page 3 of 5.
and all reimbursement payments made by the member agencies. Assignment of
capital cost allocation for facilities shared by the member agencies was calculated
based on a weighted percent of the total minimum annual commitments designated
in the East County Agreements.
2. The cost recovery methodology provided in Exhibit B has also been agreed to by the
Parties and shows reduction of Otay’s component of the remaining capital costs
based on actual and forecasted water deliveries limited to those detailed in Section F
below and other adjustments agreed to by the Parties. The calculation includes an
adjustment for regional treatment plant reliability and a credit for transportation rate
offsets. It also applies an annual interest component to capture the time-value of the
initial investments.
3. Exhibit B will be updated on an annual basis by the Water Authority per Section G
of this agreement. The Cumulative Net Balance w/ Interest shown in column pn can
be paid down through a cash payment by Otay, at its own discretion, to the Water
Authority at the end of any calendar year during the term of this agreement. A copy
of the annually updated Exhibit B shall be transmitted to Otay as required in Section
G below.
F. Water Deliveries Included in Net Cash Flow Calculation. Water deliveries applied to the
cost recovery methodology in Exhibit B, column an, shall include all deliveries through
the Otay 14 Flow Control Facility and those designated deliveries through Otay 11 Flow
Control Facility off the Water Authority’s Second Aqueduct as long as those designated
deliveries are agreed to by the Water Authority in advance. Designated deliveries from
the Water Authority’s Second Aqueduct shall include in lieu deliveries requested by the
Water Authority and those deliveries associated with management of water quality south
of the Water Authority’s Mission Trails Flow Regulatory Structure.
G. Annual Reporting of Deliveries and Financial Obligations. The Water Authority will
provide Otay an update of Exhibit B by February 28 every year during the term of this
agreement to capture actual water deliveries (an) for the previous calendar year ending
December 31 and updated Capital Modification Expenses (cn), Levy Treatment Rates
(dn), and Water Authority Treatment Surcharge (gn). Any comments or disputes shall be
presented to the Water Authority within 14 calendar days upon receipt of the update. The
Water Authority shall provide a response to comments/disputes and a revised Exhibit B,
if necessary, within 14 calendar days of receipt of comments or disputes.
H. Term; Expiration of Otay Financial Obligations. This agreement shall remain in effect
until terminated by mutual written consent of the Parties. Notwithstanding, Otay’s
financial obligations under this agreement shall expire when Otay zeroes out the
Cumulative Net Balance with Interest (nn) on Exhibit B, as updated by the Water
Authority per Section G above or December 31, 2028, whichever is sooner. Should a
balance remain on December 31, 2028, Otay agrees to pay the outstanding balance in full
to the Water Authority within 30 calendar days.
I. Purchase Cost of Water. For any water delivered by the Water Authority to a designated
Otay Flow Control Facility under this agreement, the Water Authority agrees to charge
ATTACHMENT B
Page 4 of 5.
Otay the same price for water as is regularly charged to all other member agencies for
treated water service, reflecting the total of the water supply, transportation, customer
service, storage, and treatment charge, or, in the case of a change to the Water Authority
rate structure, the identical applicable rates charged to its other member agencies for
similar service.
J. Indemnification. Otay and the Water Authority agree to mutually indemnify, defend
each at its own expense, including attorneys’ fees, and hold each other harmless from and
against all claims, costs, demands, losses, and liability of any nature whatsoever,
including but not limited to liability for bodily injury, sickness, disease or death, property
damage (including loss of use) or violation of law, caused by or arising out of any error,
omission, negligent act or willful misconduct of that party, its officers, directors,
employees, agents, volunteers or any other person acting pursuant to its control in
performing under this agreement. No party shall be indemnified for its sole or active
negligence.
K. Laws and Venue. This agreement will be interpreted in accordance with the laws of the
State of California. If any action is brought to interpret or enforce any term of this
agreement, the action shall be brought in a state or a federal court in the County of San
Diego.
L. Amendment. This agreement may be modified only by a subsequent written amendment
executed by both Parties.
M. Successors or Assigns. This agreement and any portion thereof shall not be assigned or
transferred, nor shall any of the duties be delegated, without the express written consent
of both Parties, which shall not be unreasonably withheld or delayed. Any attempt to
assign or delegate this agreement without the express written consent of both Parties shall
be void and of no force or effect.
N. Notices. Any notice or instrument required to be given or delivered by this agreement
may be given or delivered by depositing the same in any United States Post Office,
postage prepaid, addressed to:
Otay Water District
2554 Sweetwater Springs Boulevard
Spring Valley, CA 91978
Attention: General Manager
San Diego County Water Authority
4677 Overland Avenue
San Diego, CA 92123
Attention: General Manager
ATTACHMENT B
Page 5 of 5.
O. Signatures. The individuals executing this agreement represent and warrant that they
have the legal capacity and authority to do so on behalf of their respective legal entities.
IN WITNESS WHEREOF, the parties have executed as of the date written above.
San Diego County Water Authority Otay Water District
By: By:
Maureen A. Stapleton Mark Watton
General Manager General Manager
Approved as to form: Approved as to form:
By: By:
General Counsel General Counsel
EXHIBIT A ‐ Capital Cost Allocation
Project Total Project
Capital Cost
WA Cost To Be
Recovered
WA Payment
Years
MA Cost
Allocation Reimbursed Reimbursement
Years
Cost To Be
Recovered
MA Cost
Allocation Reimbursed Reimbursement
Years
Cost To Be
Recovered
MA Cost
Allocation Reimbursed Reimbursement
Years
Cost To Be
Recovered
Los Coches PS 2 ($9,604,290) ($5,083,575) 2006‐2009 $0 $0 ‐ $0 ($2,033,430) $0 ‐ ($2,033,430) ($3,050,145) $2,881,347 2010 ($168,798)
Helix Flume
Improvements1 ($4,482,878) ($4,482,878) 2006‐2010 ($642,597) $0 ‐ ($642,597) ($1,912,491) $0 ‐ ($1,912,491) ($1,927,791) $0 ‐ ($1,927,791)
WA Administration
(Planning)1 ($35,394) ($35,394) 2010 ($5,074) $0 ‐ ($5,074) ($15,100) $0 ‐ ($15,100) ($15,221) $0 ‐ ($15,221)
Levy WTP Capacity
Purchase ($10,607,882) ($10,607,882) 2008‐2011 ($1,520,584) $0 ‐ ($1,520,584)($4,525,547) $0 ‐ ($4,525,547) ($4,561,751) $0 ‐ ($4,561,751)
54" Transmission
Main Capacity
(Lakeside)
($300,000) ($300,000) 2008‐2011 ($300,000) $450,000 2011 $150,000 $0 $0 ‐ $0 $0 $0 ‐ $0
Helix Flume
Capacity (Otay) ($1,500,000) ($1,500,000) 2008‐2011 $0 $0 ‐ $0 ($1,500,000) $0 ‐ ($1,500,000) $0 $0 ‐ $0
Helix Flume
Capacity (Padre) ($600,000) ($600,000) 2008‐2011 $0 $0 ‐ $0 $0 $0 ‐ $0 ($600,000) $400,000 2010 ($200,000)
Otay 14 FCF
Expansion3 ($627,925) ($627,925) 2006‐2011 $0 $0 ‐ $0 ($627,925) $627,925 2010 $0 $0 $0 ‐ $0
Otay 14 FCF Temp.
Mod.($9,873) ($9,873) 2009‐2010 $0 $0 ‐ $0 ($9,873) $9,400 2010 ‐$473 $0 $0 ‐ $0
Otay 36" Reservoir
Pipeline
Improvement4
$0 $0 2008‐2011 $0 $0 ‐ $0 $0 $0 ‐ $0 $0 $0 ‐ $0
Lakeside 1 FCF ($230,753) ($230,753) 2006‐2011 ($230,753) $228,853 2011 ($1,900) $0 $0 ‐ $0 $0 $0 ‐ $0
Padre 7 FCF ($92,718) ($92,718) 2006‐2015 $0 $0 ‐ $0 $0 $0 ‐ $0 ($92,718) $84,843 2011 ($7,875)
($28,091,713) ($23,570,998) ($2,699,007) $678,853 ($2,020,154) ($10,624,365) $637,325 ($9,987,040) ($10,247,626) $3,366,190 ($6,881,436)
Notes:
1. MA Cost associated with Helix Improvement Projects (excluding Los Coches PS) allocated by weighting based on minimum take commitments and agreement designated reimbursement amounts
2. Los Coches PS Costs to be split 60/40 for Padre Dam and Otay, respectively, per K. Weinberg's email dated 8/31/16
3. Otay 14 FCF Expansion total project capital cost does not include the Water Authority's cost responsibility for the 4 cfs capacity implemented to replace Otay 8 FCF
4. Otay 36" Reservoir Pipeline Improvement was implemented by Otay and reimbursed by the Water Authority to replace capacity abandoned in the La Mesa Sweetwater Extension Pipeline
May 1, 2017
Helix Water District Improvement Projects
Helix Water District Capacity Purchases
Member Agency Improvements
Lakeside Water District Otay Water District Padre Dam Municipal Water District
L:\WR\DeptOnly\3231‐FACILITY PLANNING\Agreements\East County Agreements\Revised Agreements\Otay\Exhibit A ‐ Capital Cost Allocation.xlsx
EXHIBIT B ‐ Cost Recovery (Otay)Inflation Rate6 Interest Rate (IR)
Revised: 23‐Jun‐17 1.83% 3.09%
CY End Acre‐Ft 1 Capital Expenses Capital Mod.
Expenses 2
Levy Treatment
Rates 3 Operating Expenses Total Expenses WA Treatment
Surcharge Total Revenue
Twin Oaks WTP
Reliability Adjustment
(unit rate) 4
Transportation Rate
Credit 5
(unit rate)
Total Annual
Adjustment Cumulative Net Balance Interest
Cumulative Net
Balance w/ Interest
( an ) ( bn ) ( cn ) ( dn ) ( en ) = an*dn ( fn ) = bn+cn+en ( gn ) ( hn ) = an*gn ( in ) ( jn ) ( kn ) = (in+jn)*an ( ln ) = (nn‐1) +fn+hn+kn ( mn ) = ln*IR ( nn ) = ln+mn
‐ AF $ $ $/AF $ $ $/AF $ $/AF $/AF $ $ $ $
2006 0 ($322,663) $0 $0 $0 ($322,663) $0 $0 $0 $0 $0 ($322,663) ($9,974) ($332,637)
2007 0 ($989,007) $0 $78 $0 ($989,007) $147 $0 $0 $0 $0 ($1,321,644) ($40,852) ($1,362,496)
2008 0 ($3,642,243) ($9,371) $85 $0 ($3,651,614) $164 $0 $0 $0 $0 ($5,014,110) ($154,986) ($5,169,096)
2009 0 ($287,863) $0 $96 $0 ($287,863) $168 $0 $0 $0 $0 ($5,456,958) ($168,675) ($5,625,633)
2010 1215 $269,407 $0 $99 ($120,236) $149,170 $215 $261,225 ($39.77) $1.57 ($46,416) ($5,261,654) ($162,638) ($5,424,292)
2011 9612.84 ($5,014,671) $0 $92 ($880,776) ($5,895,447) $215 $2,066,761 ($44.10) $1.65 ($408,033) ($9,661,011) ($298,622) ($9,959,633)
2012 10071.15 $0 ($30,231) $90 ($909,526) ($939,757) $234 $2,356,649 ($48.81) $1.75 ($473,999) ($9,016,739) ($278,707) ($9,295,447)
2013 10238.46 $0 ($34,638) $92 ($941,426) ($976,064) $256 $2,621,046 ($43.17) $1.69 ($424,640) ($8,075,105) ($249,601) ($8,324,706)
2014 10533.79 $0 $0 $100 ($1,048,112) ($1,048,112) $274 $2,886,258 ($42.74) $1.68 ($432,518) ($6,919,077) ($213,869) ($7,132,946)
2015 8262.47 $0 ($23,499) $113 ($933,659) ($957,158) $278 $2,296,967 ($42.36) $1.66 ($336,269) ($6,129,406) ($189,460) ($6,318,866)
2016 8430.9 $0 ($71,496) $120 ($1,011,708) ($1,083,204) $280 $2,360,652 ($50.51) $1.78 ($410,811) ($5,452,229) ($168,528) ($5,620,757)
Subtotals:58365 ($9,987,040) ($169,234) ($5,845,444) ($16,001,718) $14,849,558 (2,532,685)$ ($1,935,912)
2017 8347 $0 ($31,973) $122 ($1,019,932) ($1,051,904) $290 $2,420,539 ($55.11) $1.81 ($444,858) ($4,696,981) ($145,184) ($4,842,164)
2018 8347 $0 ($32,558) $124 ($1,038,596) ($1,071,154) $300 $2,504,006 ($53.66) $1.83 ($432,650) ($3,841,963) ($118,755) ($3,960,718)
2019 8347 $0 ($33,154) $127 ($1,057,603) ($1,090,756) $305 $2,549,829 ($54.64) $1.84 ($440,706) ($2,942,351) ($90,948) ($3,033,299)
2020 8347 $0 ($33,760) $129 ($1,076,957) ($1,110,717) $311 $2,596,491 ($55.64) $1.86 ($448,909) ($1,996,434) ($61,710) ($2,058,144)
2021 8347 $0 ($34,378) $131 ($1,096,665) ($1,131,043) $317 $2,644,006 ($56.66) $1.88 ($457,262) ($1,002,442) ($30,985) ($1,033,427)
2022 8347 $0 ($35,007) $134 ($1,116,734) ($1,151,741) $323 $2,692,392 ($57.70) $1.89 ($465,768) $41,455 $0 $0
Totals:108445 ($9,987,040) ($370,064) ($12,251,930) ($22,609,034) $30,256,819 (5,222,836)$ ($2,383,494)
Notes:
1. Assumes average purchase amounts over the last two years from Otay 14 FCF & portions of Otay 11 FCF (PRIMA) for CY 2017 and beyond
2. Capital Expenses weighted for each Member Agency based on minimum commitment [i.e.: (10000/(3360+10000+10080) = 42.66%)]
3. Levy Treatment rates originally were based on FY. To convert these rates to CY, take previous FY and average with current FY.
4. Twin Oaks WTP Reliability Adjustment includes weighted costs for each facility (capital costs only) contributing to the WA's treated water surcharge.
5. Transportation costs attributed to the East County Agreements are represented as credits and include the debt service for periods through 2038
6. Inflation rate has been applied to the Capital Mod. Expenses, Levy and WA treatment rates, and all charges and credits beyond CY 2016.
Adjustment and Credit Equations:
Twin Oaks WTP Reliability Adjustment = WA Treated Water Surcharge * Twin Oaks Capital Cost Annual Debt Service / Projected Total Treated Water Cost
Transportation Rate Credit = (East County Agreement Transportation Annual Debt Service / Projected Total Water Deliveries) + Value of Future Debt Service through 2038
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: February 7, 2018
SUBMITTED BY:
Dan Martin
Engineering Manager
PROJECT: S2045-
001103
DIV. NO. 5
APPROVED BY:
Rod Posada, Chief, Engineering
Mark Watton, General Manager
SUBJECT: Termination of a Construction Contract to Ortiz Corporation
for the Fuerte Drive Sewer Relocation Project
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District (District) Board of Directors (Board)
terminate a construction contract to Ortiz Corporation (Ortiz) for
the Fuerte Drive Sewer Relocation Project (CIP S2045) that was
awarded at the September 6, 2017 Board meeting in an amount not-to-
exceed $147,650.00 (see Exhibit A for Project location).
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To obtain Board authorization to terminate a construction contract to
Ortiz for the Fuerte Drive Sewer Relocation Project (CIP S2045).
ANALYSIS:
The Fuerte Drive Sewer Relocation Project is for the relocation of
approximately 255 linear feet of 8-inch sanitary gravity sewer
related to the County of San Diego (County) realigning Fuerte Drive
at the intersection of Alzeda Drive for safety issues. The original
schedule provided to the District for performing the project was from
November 21, 2017 to December 15, 2017. This time period, which was
included in the District’s bid documents for the project, was set by
2
the County in coordination with the relocation of other utilities in
the area including water, gas, electric and communications. In August
2017, after the bid opening for the project, but before the Board
authorization of the contract award, the County revised the
construction schedule for utility relocations. The County advised
the District that the District’s updated construction period would be
from January 15, 2018 to February 7, 2018. This schedule change was
conveyed to Ortiz before the Board meeting and Ortiz indicated that
they would accept the new construction timetable with no impacts to
their bid pricing.
During late fall 2017, the County advised the District that the
District’s utility relocation schedule would be moved into Spring
2018. On January 11, 2018, District staff communicated with County
staff and was informed that the District’s construction period for
utility relocation was moved to a period of April 9, 2018 to May 4,
2018. Staff followed up with Ortiz, as noted in Exhibit B on January
11, 2018, to verify their ability to meet the project schedule.
Ortiz indicated that they could not accommodate the new dates due to
other obligations and requested to terminate the contract. District
staff followed up with Ortiz to see if shifting the start date by a
month would assist in Ortiz’s ability to support the project. Ortiz
responded that they had just secured a couple of large projects and
are unable to support the revised timelines of the District’s
project.
The District will consider other alternatives for constructing the
project, including rebidding the project under the California Uniform
Public Construction Cost Accounting Act (CUPCCAA) procedures adopted
by the District.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
None.
STRATEGIC GOAL:
This Project supports the District’s Mission statement, “To provide
high value water and wastewater services to the customers of the Otay
Water District in a professional, effective, and efficient manner”
and the District’s Vision, “A District that is at the forefront in
innovations to provide water services at affordable rates, with a
reputation for outstanding customer service.”
LEGAL IMPACT:
None.
3
DM/RP:jf
P:\WORKING\CIP S2045 Fuerte Drive Sewer Relocation\Staff Reports\BD 02-07-18\BD-02-07-18, Staff Report,
Fuerte Drive Sewer Terminate Construction Contract, (SB-BK).docx
Attachments: Attachment A – Committee Action
Exhibit A – Location Map
Exhibit B – Response from Ortiz Corporation
ATTACHMENT A
SUBJECT/PROJECT:
S2045-001103 Termination of a Construction Contract to Ortiz Corporation
for the Fuerte Drive Sewer Relocation Project
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee
(Committee) reviewed this item at a meeting held on January 22, 2018,
and the following comments were made:
Staff reviewed the staff report with the Committee and
recommended that the Board terminate a construction contract to
Ortiz Corporation (Ortiz) for the Fuerte Drive Sewer Relocation
Project (CIP S2045) that was awarded at the September 6, 2017
Board meeting in an amount not-to-exceed $147,650.00.
In response to a question from the Committee, staff stated that
coordination of the dry and wet utilities through the County of
San Diego’s permitting process was the primary reason behind the
District’s utility relocation schedule change. The Committee
then discussed the impacts to the District and utility companies
when a schedule changes.
Staff indicated that the District is considering other
alternatives for constructing the project, including the
addition of a change order to an active construction contract to
complete the project.
Upon completion of the discussion, the Committee accepted staffs’
report and supported presentation to the full board as a consent
item.
OTAY WATER DISTRICTFUERTE DR SEWER RELOCATIONLOCATION MAPEXHIBIT A CIP S2045F
P:\WORKING\CIP S2045 Fuerte Drive Sewer Relocation\Graphics\Exhibits-Figures\Exhibit A, Fuerte Dr Sewer Relocation, Aug 2017.mxd
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FUERTE DR
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ALZEDA DR
CRESTLAND DR
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1
D Martin
From:Jose Ortiz <jose@ortizcorporation.com>
Sent:Thursday, January 11, 2018 12:55 PM
To:D Martin
Cc:brian@ortizcorporation.com; Vu Tran; 'Info'; 'Lucy Ortiz'
Subject:RE: Project S2045 Fuerte Drive Sewer Relocation
Attachments:594: S2045 Fuerte Sewer Project
Hi Dan,
Just read the email sent to Lucy Ortiz, Ortiz Corporation cannot accommodate the new dates due to other
obligations. At this point we regret to inform that we have to pass on this project. Thank you for the consideration on
the project.
Regards,
Jose Ortiz
Operations Manager
2000 McKinley Avenue
National City, CA 91950
t: (619) 434‐7925
f: (619) 434‐7931
From: D Martin [mailto:Dan.Martin@otaywater.gov]
Sent: Friday, August 18, 2017 5:38 PM
To: Jose Ortiz <jose@ortizcorporation.com>
Cc: brian@ortizcorporation.com; Vu Tran <Vu.Tran@otaywater.gov>; 'Info' <info@ortizcorporation.com>
Subject: RE: Project S2045 Fuerte Drive Sewer Relocation
Jose,
Thanks for your response and your time on the phone this afternoon. Based on our conversation, I understand that the
revised timeframe for the Otay Water District’s on‐site construction activities which are now to be completed between
January 15, 2018 and February 7, 2018 does not impact the bid pricing provided by Ortiz Construction. I will interpret
your response below as conformation of our phone conversation. Please don’t hesitate to let me know if I have
misstated your intent in any way within 2 business days from the date of this email.
Thanks
Dan
Dan Martin
Engineering Manager
dan.martin@otaywater.gov
2
2554 Sweetwater Springs Blvd
Spring Valley, CA 91978
Office: (619) 670-2243
Fax: (619) 670-6184
From: Jose Ortiz [mailto:jose@ortizcorporation.com]
Sent: Friday, August 18, 2017 5:12 PM
To: D Martin <Dan.Martin@otaywater.gov>; 'Info' <info@ortizcorporation.com>
Cc: brian@ortizcorporation.com
Subject: RE: Project S2045 Fuerte Drive Sewer Relocation
Hi Dan,
The revised time frame works.
Thanks
Jose
From: D Martin [mailto:Dan.Martin@otaywater.gov]
Sent: Friday, August 18, 2017 9:15 AM
To: Info <info@ortizcorporation.com>
Cc: jose@ortizcorporation.com; brian@ortizcorporation.com
Subject: RE: Project S2045 Fuerte Drive Sewer Relocation
Thank you for confirming receipt. As noted below, respectfully requesting that an email response be received from Ortiz
Corporation by 4pm this afternoon.
Dan
From: Info [mailto:info@ortizcorporation.com]
Sent: Friday, August 18, 2017 8:50 AM
To: D Martin <Dan.Martin@otaywater.gov>
Subject: RE: Project S2045 Fuerte Drive Sewer Relocation
Received
Ashley Garcia ‐ Administrative Assistant
General Engineering Contractors
3
2000 McKinley Avenue, National City, CA 91950
Ph: 619‐434‐7925/Fx: 619‐434‐7931
E‐Mail: info@ortizcorporation.com
From: D Martin [mailto:Dan.Martin@otaywater.gov]
Sent: Friday, August 18, 2017 8:49 AM
To: info@ortizcorporation.com
Subject: FW: Project S2045 Fuerte Drive Sewer Relocation
Ashley
From: D Martin
Sent: Wednesday, August 16, 2017 6:25 PM
To: 'jose@ortizcorporation.com' <jose@ortizcorporation.com>
Cc: Steve Beppler <Steve.Beppler@otaywater.gov>; Bob Kennedy <Bob.Kennedy@otaywater.gov>; Rod Posada
<RodP@otaywater.gov>; Vu Tran <Vu.Tran@otaywater.gov>; 'brian@ortizcorporation.com'
<brian@ortizcorporation.com>
Subject: Project S2045 Fuerte Drive Sewer Relocation
Mr. Ortiz,
As you know, Ortiz Corporation is the apparent low bidder for the Otay Water District’s (District) Fuerte Drive Sewer
Relocation project (S2045). Section 400 “CONTRACT COMPLETION TIME” of the District’s bid documents state that “On‐
site construction activities are to be completed between November 21, 2017 and December 15, 2017 in coordination
with the County of San Diego’s road realignment contract and other utility relocation contracts.”
This afternoon, the County of San Diego notified our agency that the County of San Diego has updated the scheduling for
the District’s on‐site construction activities. The Otay Water District’s on‐site construction activities are now to be
completed between January 15, 2018 and February 7, 2018 in coordination with the County of San Diego’s road
realignment contract and other utility relocation contracts.
Staff is preparing a recommendation to award the Fuerte Drive Sewer Relocation Project (S2045) to Ortiz
Corporation. However, should the County of San Diego’s updated schedule impact Ortiz Corporation’s submitted bid
pricing for the project, the District may need to consider not awarding the project. Please let me know if this change by
the County of San Diego has any impact on the bid submitted by Ortiz Corporation.
I can be reached at (619) 670‐2243 to answer any questions you may have. I respectfully request that you provide a
response to this email by 4pm on Friday August 18, 2017. I will call you tomorrow morning to confirm receipt of this
email.
Dan
Dan Martin
Engineering Manager
dan.martin@otaywater.gov
4
2554 Sweetwater Springs Blvd
Spring Valley, CA 91978
Office: (619) 670-2243
Fax: (619) 670-6184
Virus-free. www.avg.com
Click here to report this email as spam.
1
D Martin
From:Lucy Ortiz <lucy@ortizcorporation.com>
Sent:Thursday, January 11, 2018 12:07 PM
To:D Martin; dcook@alysoncorp.com
Cc:'Brian'; jose@ortizcorporation.com; guy@ortizcorporation.com; 'Project Engineering';
'Vanessa'
Subject:594: S2045 Fuerte Sewer Project
Dan, acknowledging email below. Thank you.
Doug, please get in touch with Brian who is our PM for this project. Thank you.
Thanks so much,
Maria Louisa Ortiz "Lucy"
General Engineering Contractors
2000 mckinley avenue, national city, ca 91950
t:(619) 434-7925 f:(619) 434-7931
e: lucy@ortizcorporation.com
From: D Martin [mailto:Dan.Martin@otaywater.gov]
Sent: Thursday, January 11, 2018 10:50 AM
To: dcook@alysoncorp.com
Cc: Lucy Ortiz <lucy@ortizcorporation.com>; Steve Beppler <Steve.Beppler@otaywater.gov>
Subject: S2045 Fuerte Sewer Project
Doug,
As mentioned, the County of San Diego has been coordinating the permits for the work on Fuerte Road. Thus far,
SDG&E, AT&T, Cox Communications, and Crown have performed utility relocation work. The Helix Water District is
beginning their water relocation work next week and are scheduled to complete the first week of April. The County has
notified the Otay Water District that they would like the planned sewer relocation work to occur starting on April 9,
2018 and completing by May 4, 2018.
The S2045 project that is currently contracted with Ortiz Corporation is intended to complete the District’s sewer
relocation work on Fuerte Drive. To date, the District has not issued the Notice to Proceed to Ortiz Corporation and they
have been very patient.
Please reach out to Ortiz Corporation to discuss the revised work window provided by the County of San Diego and
advise me if they can accommodate the revised timeline and if there are any concerns. Also, we should discuss a Notice
to Proceed date. Given the dates provided by the County of San Diego, I’m thinking that we would need to issue a
Notice to Proceed next month.
Dan
2
Dan Martin
Engineering Manager
dan.martin@otaywater.gov
2554 Sweetwater Springs Blvd
Spring Valley, CA 91978
Office: (619) 670-2243
Fax: (619) 670-6184
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: February 7, 2018
SUBMITTED BY:
Rita Bell, Finance Manager
PROJECT: DIV. NO. All
APPROVED BY:
Kevin Koeppen, Assistant Chief Financial Officer
Joseph R. Beachem, Chief Financial Officer
Mark Watton, General Manager
SUBJECT: Adopt Resolution No. 4342 Designating District Staff with the
Authority to Order the Deposit or Withdrawal of Funds with the
Local Agency Investment Fund
GENERAL MANAGER’S RECOMMENDATION:
That the Board adopt Resolution No. 4342 to authorize the following
positions to order the deposit or withdrawal of funds in the Local
Agency Investment Fund (LAIF):
Chief Financial Officer
Assistant Chief Financial Officer
Finance Manager
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
To renew authorization, using current position titles, for selected
District staff to order the deposit or withdrawal of funds in LAIF.
2
ANALYSIS:
The District currently invests funds in LAIF for the purpose of
earning a return on available funds. Authorized staff regularly
transfers funds between the District’s LAIF and Union Bank accounts
to meet the District’s short-term cash requirements.
With the recent position and title changes, it has become necessary
to renew our standing authorizations with LAIF, and to provide LAIF
with a new resolution listing the appropriate position titles
responsible for making deposits and withdrawals. This action also
gives authorization to the successors of these positions, thereby
minimizing the need for future Board actions.
This administrative update addresses the LAIF policy requiring
authorizations be done by resolution of the Board and not by
previously authorized parties.
FISCAL IMPACT:
None.
STRATEGIC GOAL:
The use of LAIF helps the District to meet our strategic goal of
prudently managing District funds.
LEGAL IMPACT:
None.
Attachments: A) Committee Action
B) Resolution No. 4342
ATTACHMENT A
SUBJECT/PROJECT:
Adopt Resolution No. 4342 Designating District Staff with
the Authority to Order the Deposit or Withdrawal of Funds
with the Local Agency Investment Fund
COMMITTEE ACTION:
The Finance and Administration Committee reviewed this item at a
meeting held on January 24, 2018 and the following comments were made:
Staff is requesting that the board adopt Resolution No. 4342 to
authorize the following positions to order the deposit or withdrawal
of funds in the Local Agency Investment Fund (LAIF):
Chief Financial Officer
Assistant Chief Financial Officer
Finance Manager
Staff reviewed information in the staff report.
The Committee inquired if the authorized individuals were the same
as past designations. The authorized positions in the past were the
Assistant General Manager, Chief Financial Officer and Finance
Manager. The positions have changed since the last designation and
the District wishes to update the designations to the Chief
Financial Officer, Assistant Chief Financial Officer and Finance
Manager. It is also felt that it is good to periodically renew the
resolution and submit it to LAIF.
Upon completion of the discussion, the committee supported staffs’
recommendation and presentation to the full board on the consent
calendar.
RESOLUTION NO. 4342
RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY WATER
DISTRICT DESIGNATING DISTRICT STAFF WITH THE AUTHORITY TO
ORDER THE DEPOSIT OR WITHDRAWAL OF FUNDS WITH THE LOCAL
AGENCY INVESTMENT FUND (LAIF)
WHEREAS, The Otay Water District is currently authorized to invest
funds in the Local Agency Investment Fund (LAIF); and
WHEREAS, The Board of Directors does hereby find that the deposit
and withdrawal of funds in LAIF, in accordance with the provisions of
Section 16429.1 of the Government Code for the purpose of investment as
stated therein, as is in the best interest of the Otay Water District;
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the
Otay Water District that the following District designees, or their
successors in office, shall be authorized to order the deposit and
withdrawal of funds with LAIF:
Joseph R. Beachem ______________________
Chief Financial Officer
Kevin Koeppen __________________________
Assistant Chief of Finance
Rita K. Bell ____________________________
Finance Manager, Treasury and Accounting Services
PASSED, ADOPTED AND APPROVED by the Board of Directors of the Otay
Water District, County of San Diego, State of California, at a regular
meeting held on this 7th day of February, 2018.
AYES:
NOES:
ABSTAIN:
ABSENT:
_____________________________________
President
ATTEST:
____________________________________
Secretary
Attachment B
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: February 7, 2018
SUBMITTED BY:
Dan Martin
Engineering Manager
PROJECT: D0914-
090272
090206
DIV. NO. 2
APPROVED BY:
Rod Posada, Chief, Engineering
Mark Watton, General Manager
SUBJECT: Sale of 2.539 Acres of Otay Water District (District) property
located along the future alignment of Alta Road on Otay Mesa
GENERAL MANAGER’S RECOMMENDATION:
That the Board:
1. Declare 2.539 acres of real estate property located along the
future alignment of Alta Road on Otay Mesa as surplus (please see
Exhibit A for location).
2. Authorize the General Manager to accept an offer from Kearny PCCP
Otay 311, LLC, a Delaware limited liability company (Kearny) to
purchase 2.539 acres of the land for $691,475.00 (Exhibit B) and
accept a Grant of Easement that secures the Otay Water District’s
prior property rights (Exhibit C).
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To obtain approval from the Otay Water District Board (Board) to
declare 2.539 acres of District property as surplus and to authorize
the General manager to accept an offer from Kearny to purchase 2.539
acres of the land for $691,475.00 and accept a Grant of Easement that
secures the Otay Water District’s prior property rights.
2
ANALYSIS:
The District owns a thirty (30) foot wide parcel (APN 648-070-18-00)
on Otay Mesa that is located in the future alignment of Alta Road.
The north end of the District’s parcel is located at Otay Mesa Road
and the south end of the parcel is located approximately 340 feet
north of the International Border (See Exhibit A). The parcel
supports the District’s 24-inch water distribution main that supplies
emergency water to Mexico.
The State of California Department of Transportation (Caltrans) is in
the process of moving forward with the development of State Route 11
(SR 11) east of Enrico Fermi Drive on Otay Mesa. The work by Caltrans
includes acquisition of right-of-way for the SR 11 project. This
recent activity by Caltrans has assisted in moving development
projects on Otay Mesa forward including the Otay Crossings Commerce
Park. The Otay Crossings Commerce Park project consists of 311.5-
acres of mixed industrial land. The future extension of SR-11 is
planned to be constructed through the Otay Crossings Commerce Park
project.
As a condition of development, the Otay Crossings Commerce Park, which
is located immediately east of the District’s thirty (30) foot wide
parcel, is required to construct the extension of Alta Road between
Otay Mesa Road and Airway Road. The Otay Crossings Commerce Park is
also required to install off-site sewer improvements to support the
development. These improvements include sewer that will be located in
the future Alta Road between Airway Road and Siempre Viva Road.
Kearny, the developer for the Otay Crossings Commerce Park, has
approached the District to purchase portions of the District’s
property, which are needed to construct the extension of Alta Road and
the off-site sewer. The developer funded a District appraisal for the
acquisition of the District’s property.
The District has also been approached by Caltrans to acquire a portion
of the thirty (30) foot wide parcel for the SR 11 project. Caltrans
has provided the District with an appraisal for the portion of
District property needed for the SR 11 project. The District’s
appraisal for the proposed developer acquisition has been reconciled
with the appraisal performed by Caltrans. The highest appraisal value
is being used for the purchase of the District’s property.
A Purchase and Sale Agreement and Escrow Instructions has been
developed for the purchase of the property (Exhibit B), which includes
the plat and legal descriptions. A Grant of Easement of Right-of-Way
has also been developed to secure the District prior rights (Exhibit
3
C). Staff is recommending that these documents be executed in
substantially the same form as shown.
Once the Alta Road improvements are completed, the developer will
dedicate these improvements to the County of San Diego.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
This land sale will result in a one-time revenue to the District of
$691,475.00.
STRATEGIC GOAL:
The expansion of the distribution system through the construction
developer projects supports the District’s Mission statement, “To
provide high value water and wastewater services to the customers of
the Otay Water District, in a professional, effective, and efficient
manner” and the General Manager’s Vision, "A District that is at the
forefront in innovations to provide water services at affordable
rates, with a reputation for outstanding customer service."
LEGAL IMPACT:
None.
DM/RP:jf
P:\Public-s\STAFF REPORTS\2018\BD 02-07-18\BD 02-07-18 Sale o Sale of 2.539 Acres of Excess Property along
Future Alta Road Alignment to Kearny PCCP Otay 311, LLC Staff Report (DM_RP).docx
Attachments: Attachment A – Committee Action
Exhibit A – Location Map
Exhibit B – Purchase and Sale Agreement and Escrow
Instructions
Exhibit C - Grant of Easement of Right-of-Way to Otay
Water District
ATTACHMENT A
SUBJECT/PROJECT:
D0914-090272
-090206
Sale of 2.539 Acres of Otay Water District (District)
property located along the future alignment of Alta Road on
Otay Mesa
COMMITTEE ACTION:
The Finance and Administration Committee reviewed this item at a
meeting held on January 24, 2018 and the following comments were made:
Staff is requesting that the board declare 2.539 acres of real
estate property located along the future alignment of Alta Road in
Otay Mesa as surplus and accept an offer from Kearny PCCP Otay 311,
LLC, a Delaware limited liability company (Kearny) to purchase 2.539
acres of the land for $691,475 and accept a Grant of Easement that
secures the Otay Water District’s prior property rights.
Staff reviewed information in the staff report.
It was noted that the segments in the location map (Exhibit A)
attached to the staff report represents about half of the actual
parcel. The parcel area goes south to approximately 340 feet north
of the International Border and is currently undeveloped land.
The District will be selling the segments of the District’s parcel
that are marked in “red” and “yellow” on the location map (Exhibit
A). The areas in red will be new roads and the area in yellow will
be a new road with sewer facilities installed beneath it. All work,
including relocation of the District’s water facilities, will be
done and paid for by the developer. It was noted that this is phase
one of their development.
It was discussed that it is expected that the District will
eventually sell the remainder of its parcel to the developers who
own land adjacent to the parcel at the time these Developers begin
to develop their lands.
The Committee also discussed the difference between the District’s
appraiser’s per square foot valuation versus CalTrans’ appraiser’s
valuation. The District’s appraiser appraised the parcel at $2 per
square foot and CalTrans’ appraiser valued the parcel at $6.25 per
5
square foot. Staff researched previous property sales in the area
for comparables and decided that based on the comparables, CalTrans
valuation was more representative of the square foot value within
the area. The District utilized CalTrans’ valuation of $6.25 a
square foot to determine the sale price of the property. The
Committee felt that the price was a fair valuation.
In response to an inquiry from the Committee, staff indicated that
the funds from the sale of the District’s property would be
unanticipated revenue and the funds would not be restricted.
Upon completion of the discussion, the committee supported staffs’
recommendation and presentation to the full board on the consent
calendar.
6
Subsequent to the Committee meeting the following graphic was added to
show the relationship between the Otay Crossings Commerce Park, the
future extension of State Route 11, and the Future Port of Entry.
OTAY WATER DISTRICTAPN 648-070-18LOCATION MAP
EXHIBIT A
D0914-090272D0914-090206P:\DRAFTING DEPARTMENT\Info for Others\OWD\Dan Martin\Exhibit A, APN 648-070-18.mxd
Otay CrossingsCommerce ParkAPN 648-070-03
Otay Water District APN 648-070-18Portion 1 (North)
Otay Water DistrictAPN 648-070-18Portion 2
?ÜFUTURE
Otay Water DistrictAPN 648-070-18Portion 1 (South)
Alta Rd
Otay Mesa Rd
Enrico Fermi Dr
Airway Rd
Marconi Dr
Paseo de la Fuente
Calzada de la Fuente
Access Rd
Siempre Viva Rd
VICINITY MAP
PROJECT SITE
NTSDIV 5
DIV 1
DIV 2
DIV 4
DIV 3
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F
0 1,000500
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Legend
APN 648-070-18, Portion 1
APN 648-070-18, Portion 2
APN 648-070-03
EXHIBIT B
AS7 Law San Diego/4344/2/K/S0362738.DOC
PURCHASE AND SALE AGREEMENT
AND ESCROW INSTRUCTIONS
This Purchase and Sale Agreement and Escrow Instructions ("Agreement") is
entered into effective as of ______________________, 2018 ("Effective Date"), between
OTAY WATER DISTRICT, a municipal water district formed under the Municipal Water
District Act of 1911 (“Seller”) and KEARNY PCCP OTAY 311, LLC, a Delaware limited
liability company (“Buyer"), and constitutes an agreement for purchase and sale between
the parties and joint escrow instructions to the Escrow Agent identified herein and is made
with reference to the following facts:
RECITALS
A. Seller is the owner of the approximately 2.539 acres of land (“Property”) in the
Otay Mesa area in the City of San Diego, State of California. The Property is more
particularly described in Exhibits “A” and “A-1” attached hereto.
B. Seller desires to sell the Property to Buyer and Buyer desires to purchase the
Property, all on the terms and conditions in this Agreement.
FOR GOOD AND VALUABLE CONSIDERATION, the receipt and adequacy of
which are acknowledged, Buyer and Seller agree as follows:
ARTICLE 1
PURCHASE AND SALE
1.1 Purchase and Sale. On the terms and conditions set forth herein, Seller
agrees to sell to Buyer the Property, and Buyer agrees to purchase from Seller the
Property.
ARTICLE 2
AGREEMENT OF SALE AND PURCHASE PRICE
2.1 Purchase Price. The purchase price for the Property shall be Six Hundred
Ninety One Thousand Four Hundred Seventy Five Dollars ($691,475.00) (the "Purchase
Price").
2.2 Payment of Purchase Price. Buyer shall deliver to Escrow Agent on the
Close of Escrow, Cash representing the balance of the Purchase Price due.
ARTICLE 3
CLOSING
3.1 Opening of Escrow. No later than one day after the execution of this
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Agreement, the Buyer and Seller shall open an Escrow at First American Title Insurance
Company, Attn: Melissa Smith, 4380 La Jolla Village Drive, Suite 110, San Diego, CA
92122; Phone: 858-410-3885; Cell: 619-385-1760; Fax: 877-461-2095; Email:
melsmith@firstam.com ("Escrow" or “Escrow Agent”).
3.2 Close of Escrow. Escrow shall close on the Closing Date as set forth in
Section 3.3 below.
3.3 Closing Date. The Closing Date shall occur on or before a date, which is ten
(10) business days after the Contingency Date.
3.4 Escrow Instructions. The parties agree to execute such additional
supplemental escrow instructions not inconsistent with this Agreement as Escrow Agent
may reasonably require in order to facilitate the consummation of the transactions
contemplated in this Agreement, and otherwise to conform to the usual practice of Escrow
Agent, provided such instructions do not conflict with the provisions hereof. If such an
escrow instruction is contrary to, or inconsistent with, a provision of this Agreement, the
provision of this Agreement controls.
3.5 Seller’s Delivery at Closing. On or before the Closing Date, Seller shall
deliver into Escrow the following documents:
3.5.1 Grant Deed. A Grant Deed in recordable form and properly executed
on behalf of Seller conveying to Buyer the Property in fee simple (“Grant Deed”).
3.5.2 IRS. Seller's affidavit that Seller is not a foreign person as defined in
the Internal Revenue Code of 1986, as amended (42 USCS §1445(f)(3)). The
affidavit shall be in the form prescribed by federal regulations;
3.5.3 FTB. A duly executed Certificate by Seller in favor of Buyer as
required under Revenue and Taxation Code §§18662 and 18668;
3.5.4 Fees. The amount, if any, required of Seller under Articles 10 and 11
of this Agreement, entitled “Proration” and A “Costs and Fees,” respectively;
3.5.5 Other Documents. Any other documents or instruments reasonably
required to close the transaction contemplated hereby.
The failure of Seller to make delivery of any of the documents described above on or
before the Closing Date shall constitute a material breach hereof by Seller, provided that
the conditions to such delivery, if any, have been fulfilled or waived
3.6 Buyer’s Delivery at Closing. Buyer shall, on or before the Closing Date,
deliver to Escrow Agent each of the following:
3.6.1 Cash. Cash representing the balance of the Purchase Price;
Y:\Board\CurBdPkg\ENGRPLAN\2018\BD 2-7-18\Sale of 2.539 Acres of Otay Water District Property on Otay Mesa\Exhibit B -
Purchase and Sale Agreement and Escrow Instructions.doc
AS7 Law San Diego/4344/2/K/S0362738.DOC3
3.6.2 Fees. The amount, if any, required of Buyer under Articles 10 and 11
of this Agreement, entitled “Prorations” and “Costs and Fees,” respectively;
3.6.3 Other Documents. Any other documents or instruments reasonably
required to close the transaction contemplated hereby.
The failure of Buyer to make delivery of any of the documents described
above by the Closing Date shall constitute a material breach hereof by Buyer, provided that
the conditions to such delivery, if any, have been fulfilled or waived.
3.7 Completion of Documents. Escrow Agent is authorized to collate
counterparts of documents deposited into Escrow, to insert the Closing Date as the
effective date where appropriate, and to otherwise complete such documents in
accordance with instructions received by both parties, where appropriate and consistent
with this Agreement.
ARTICLE 4
CONDITIONS TO CLOSE OF ESCROW
4.1 Contingency Date. The “Contingency Date” shall mean 5:00 pm on a date,
which is twenty (20) business days after the Effective Date.
4.2 Conditions Precedent. Seller and Buyer agree that the Closing is subject to
the satisfaction or waiver of the following conditions precedent:
4.2.1 Due Diligence. Buyer, in its sole and absolute discretion, shall have
until the Contingency Date to approve or disapprove, by written notice to Seller and
Escrow Agent, all physical, developmental, economic, and any and all other aspects
of the Property. If Buyer fails to give written notice to Seller and Escrow Agent of its
approval or disapproval of all such matters on or before the Contingency Date, then
Buyer shall be deemed to have disapproved the matters subject to its due diligence
review as set forth herein, and the contingency set forth in this paragraph shall be
deemed not satisfied.
4.3 Failure of Conditions. If the conditions set forth in Sections 4.2.1 are not
satisfied or waived on or before the Contingency Date, Buyer may unilaterally terminate this
Agreement and the Escrow by giving written notice of termination to Escrow Agent and a
copy of such written notice to the Seller on or before the Contingency Date. In the event of
such termination, and except as provided below, neither party shall have any further rights
or obligations hereunder, except for any liability or obligation of Buyer and Seller, if any,
pursuant to those provisions, which survive termination of this Agreement under the
express terms of this Agreement.
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AS7 Law San Diego/4344/2/K/S0362738.DOC4
ARTICLE 5
TITLE
5.1 Delivery of PR. Within five (5) days after the Effective Date, Seller shall
deliver to Buyer a preliminary report for the Property (“PR”) issued by First American Title
Insurance Company (“Title Company”), together with copies of all underlying documents
referred to therein. During the period between the Effective Date and the Closing or earlier
termination of this Agreement, Seller shall not create any further liens or encumbrances to
title without Buyer’s prior written consent. Seller shall cause to be removed all deeds of
trust, if any, which are recorded against the Property upon Close of Escrow.
5.2 Permitted Exceptions. The following matters shall be deemed permitted
exceptions to title to the Property (“Permitted Exceptions”) and Buyer shall take title to the
Property subject thereto:
5.2.1 The lien of current, non-delinquent real estate taxes and
assessments;
5.2.2 The lien of any supplemental taxes assessed pursuant to Chapter 3.5
commencing with Section 75 of the California Revenue and Taxation Code;
5.2.3 The exceptions set forth in the PR, to the extent they are approved by
Buyer pursuant to Section 4.2.1.
5.3 Reservation of Easement. Notwithstanding Sections 5.1 and 5.2, above,
Seller hereby reserves, for itself, its successors, heirs and assigns, a permanent easement
of right-of-way over, under, and across the entire width and length of the Property, more
particularly described in Exhibit “A” attached hereto, for the purpose of laying underground
water and sewer pipelines and laterals, trunk lines, collection lines and laterals, sewer
manholes and other underground and surface structures appurtenant to said water or
sewer lines, including but not limited to power lines for transmission and communication
purposes, pumps, regulators, valves and access roads or areas within said easement,
hereinafter referred to as "said facilities," together with the right to construct, operate,
maintain, repair and replace said facilities, and the right of ingress and egress for such
purposes. Said easement is described and/or depicted as Exhibit “B” attached hereto.
5.4 Supplemental Reports. If the Title Company issues any supplement to the
PR after the Contingency Date, which identifies any additional exceptions which are not
Permitted Exceptions, Buyer shall have the right, notwithstanding expiration of the
Contingency Date, to deliver written notice of its objection to the same, in writing, to Seller
and Escrow Agent within five (5) business days after receipt of such supplemental report
with respect to the new exceptions identified in such supplemental report. All exceptions
which are approved by Buyer, in writing, shall be deemed Permitted Exceptions. If Buyer
disapproves one or more exceptions in the supplemental report within such five (5) day
period and Seller has not created such exception in breach of its obligation under Section
5.1, Seller shall have the right, but not the obligation, to cure and cause such disapproved
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AS7 Law San Diego/4344/2/K/S0362738.DOC5
exception to be deleted from the supplemental report by delivering written notice to Buyer
and Escrow Agent indicating that Seller will eliminate such exception(s) prior to the Close of
Escrow. If Seller delivers such written election to cure disapproved exceptions within three
(3) business days after receipt of Buyer’s notice of disapproval, Seller shall have until the
Close of Escrow to complete the cure. If Seller fails to deliver written notice to cure any
disapproved exception within such three (3) day period, Seller shall be deemed to have
elected not to cure the disapproved exceptions. If Seller does not elect to cure or is
deemed to have elected not to cure such disapproved exceptions as described above,
Buyer shall elect one of the following, by delivering written notice to Seller and Escrow
Agent by 5:00 p.m. within five (5) business days after Seller has elected not to cure such
disapproved exceptions or has been deemed not to cure such disapproved exception: (i) to
waive its objections, take title subject to such disapproved exceptions, which shall be
deemed Permitted Exceptions, and proceed to close the Escrow; or (ii) to terminate this
Agreement and the Escrow, in which event neither party shall have any further rights or
obligations hereunder (except for any liability or obligation of Buyer pursuant to those
provisions which survive termination of this Agreement under the express terms of this
Agreement). If Buyer fails to deliver written notice of its election prior to the applicable
deadline, Buyer will be deemed to have elected to waive its objections as described in (i)
above. Notwithstanding the above, if Seller has created such new exception in breach of
its obligation under Section 5.1, Seller shall be in default unless it causes such exception to
be deleted from the supplemental report or Title Policy prior to the Close of Escrow.
ARTICLE 6
PRE-CLOSING MATTERS
6.1 Inspection of Property. From and after the Effective Date, Seller shall make
available to Buyer reasonable access to the Property during reasonable business hours
and with reasonable advance notice to Seller for Buyer's inspection, investigation, and
approval, in Buyer's sole discretion, and at Buyer’s sole cost and expense, the physical,
geological, and environmental condition and use of the Property, including without
limitation, the availability of access, utility services, zoning, environmental risks,
engineering, and the soil conditions. Buyer agrees to indemnify Seller and to hold Seller,
Seller's agents and employees, and the Property harmless from any losses, costs,
damages, claims, or liabilities, including but not limited to, mechanics' and materialmen's
liens and attorneys’ fees, arising in connection with Buyer's entry upon the Property under
this Section 6.1.
6.2 Delivery of Documents. Seller will deliver to Buyer copies of the following
documents with respect to the Property within two (2) days after the Effective Date:
6.2.1 Project Documents. Any studies, reports, surveys, and documents
for the Property that are in Seller’s possession (collectively, the “Project
Documents”).
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ARTICLE 7
REPRESENTATIONS AND WARRANTIES
7.1 Warranties of Parties.
7.1.1 Seller's Warranties. Seller represents and warrants as of the date
hereof:
(a) Seller is a municipal water district formed under the Municipal
Water District Act of 1911, duly formed, existing and in good standing under the laws
of the State of California; Seller has full legal right, power and authority to execute
and fully perform its obligations under this Agreement pursuant to its governing
instruments,; and the persons executing this Agreement and other documents
required hereunder on behalf of Seller are the duly designated agents of Seller and
are authorized to do so.
(b) To the best of Seller’s knowledge and except as described in
the Project Documents, the Property does not contain any Hazardous Materials and
does not have located under it, nor has there ever been, any underground storage
tanks.
(c) Seller has received no notice from any governmental authority
and has no knowledge of any pending or threatened (i) zoning, building, fire, or
health code violations or violations of other laws or governmental regulations
concerning the Property or the operation of the Property that has not previously
been corrected or disclosed in writing to Buyer; and (ii) condemnation of the
Property or any part of the Property or special assessment regarding same.
(d) To the best of Seller's knowledge, no legal actions are pending
or threatened against the Property;
(e) Sale of the Property will not violate any court order or an order
of any governmental agency having jurisdiction over the Property or the Seller, or
both.
7.1.2 Buyer's Warranties. Buyer represents and warrants as follows:
(a) Buyer is a limited liability company, duly formed, existing and in
good standing under the laws of the State of Delaware; Buyer has full legal right,
power and authority to execute and fully perform its obligations under this
Agreement pursuant to its governing instruments, without the need for any further
action; and the persons executing this Agreement and other documents required
hereunder on behalf of Buyer are the duly designated agents of Buyer and are
authorized to do so.
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ARTICLE 8
BROKER’S COMMISSIONS
8.1 Real Estate Commissions. Each party represents and warrants to the other
party that no brokers or finders, other than the Brokers, have been employed or are entitled
to a commission or compensation in connection with this transaction as a result of the
action or agreement of the indemnifying party. Each party agrees to indemnify, protect,
hold harmless and defend the other party (and its partners and affiliates and their
respective officers, directors, shareholders, employees, agents, successors and assigns)
from and against any obligation or liability to pay any such commission or compensation
arising from the act or agreement of the indemnifying party.
ARTICLE 9
(intentionally deleted)
ARTICLE 10
PRORATIONS
10.1 Prorations. The following items shall be prorated, as applicable, on a per
diem basis up to and including the Closing Date:
10.1.1 All non-delinquent property taxes and installments of special
assessments due and payable in the calendar year of Closing, based upon the most
recent tax information; and
10.1.2 Assessments payable pursuant to any covenants, conditions, or
restrictions affecting the Property.
10.2 Method. All prorations shall be made on the basis of a 30-day month and a
360-day year, unless the parties otherwise agree in writing. If either party receives, after
Close of Escrow, a supplemental tax assessment based upon the new construction or a
change in ownership occurring prior to the Closing Date, then, within thirty (30) days after
receipt, the parties shall prorate said supplemental assessment outside of Escrow (but as
of the Closing Date) and make any appropriate payments.
ARTICLE 11
COSTS & FEES
11.1 Costs. Seller will pay (i) Documentary Transfer Tax, in the amount Escrow
Agent determines to be required by law; (ii) the CLTA Title Policy premium; and (iii) one-
half (1/2) of Escrow Agent’s fee. Buyer will pay (i) one-half of (1/2) Escrow Agent’s fee; (ii)
usual Buyer’s document-drafting charges; (iii) the policy premium increase for an ALTA
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Policy and any endorsements requested by Buyer and (iv) all recording charges.
ARTICLE 12
RISK OF LOSS
12.1 Buyer’s Rights. If the Property is damaged by fire or other casualty prior to
the Closing Date, Buyer may either (i) terminate this Agreement, or (ii) proceed to close this
transaction, without reduction in the Purchase Price, and have Seller assign and transfer to
Buyer on the Closing Date all of Seller’s right, title, and interest to any insurance proceeds
paid or payable to Seller under the policy covering the damage and pay to Buyer the
amount of Seller’s deductible under the insurance policy.
ARTICLE 13
CONDEMNATION
13.1 Condemnation. If between the Effective Date and the Closing Date, any
condemnation or eminent domain proceedings are commenced or threatened that might
result in the taking of any part of the Property, Buyer may either:
(a) terminate this Agreement by written notice to Seller; or
(b) proceed with the Closing and have Seller assign to Buyer all of
Seller's right, title, and interest to any award made for the condemnation or eminent
domain action.
13.2 Notice. Immediately after Seller obtains notice of the commencement of or
the threatened commencement of eminent domain or condemnation proceedings, Seller
shall notify Buyer in writing. Buyer shall then notify Seller, within thirty (30) days of Buyer's
receipt of Seller's notice, whether Buyer elects to terminate this Agreement in accordance
with Section 13.1(a) above. Failure by Buyer to respond within such thirty (30) day period
shall be deemed to be an election by Buyer to terminate this Agreement in accordance with
such Section 13.1(a) above.
ARTICLE 14
(intentionally deleted)
ARTICLE 15
NOTICES
15.1 Notice. All notices under this Agreement shall be in writing and sent by (a)
certified or registered mail, return receipt requested, in which case notice shall be deemed
delivered three (3) business days after deposit, postage prepaid in the United States Mail,
(b) by a nationally recognized overnight courier such as Airborne Express, or Federal
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Express, in which case notice shall be deemed delivered one (1) business day after deposit
with that courier, or (c) by personal delivery, in which case notice shall be deemed
delivered upon such date of delivery, as follows:
Buyer’s Address For Notice:
KEARNY PCCP OTAY 311, LLC
c/o John V. Bragg, Jr.
Kearny Real Estate Company
402 W. Broadway, Suite 180
San Diego, CA 92101
Phone: 619-702-8130
E-mail: jbragg@kearny.com
With Copies To:
Amy Strider Harleman, Esq.
Peterson & Price, APC
530 B Street, Suite 1800
San Diego, CA 92101
Fax: (619) 234-4786
E-mail: efw@petersonprice.com
Seller’s Address for Notice:
_________________________
_________________________
_________________________
With Copies To:
_________________________
_________________________
_________________________
ARTICLE 16
ASSIGNMENT
16.1 Assignment. Either party shall have the right to assign its rights and
obligations under this Agreement only with the prior written consent of the other party,
which consent shall not be unreasonably withheld. To the extent a party assigns its
obligations hereunder, the assignee shall assume the assigning party’s warranties,
representations and obligations under this Agreement and under any additional escrow
instructions, in writing and such assignee is bound by all approvals previously given, if any.
ARTICLE 17
THE CLOSING
17.1 Closing. Escrow Agent shall close the Escrow on the Closing Date by (i) filing
for record the Grant Deed, such other documents as may be necessary to procure the Title
Policy (as hereinafter defined), and Seller’s Easement, and (ii) delivering funds and
documents as set forth in this Agreement IF AND ONLY IF each of the following conditions
has been satisfied:
17.1.1 Delivery of Funds. All funds and instruments described in Section 3.5
and Section 3.6 have been delivered to Escrow Agent.
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17.1.2 Procurement of Title Policy. Escrow Agent has procured the Title
Company's ALTA Standard Owner's Policy (the "Title Policy"), with liability in the
amount of the Purchase Price, insuring that the fee title to the Property vests in
Buyer subject only to the Permitted Exceptions.
17.1.3 Conditions. The conditions to closing set forth in Section 4.2.1 and
4.2.2 have been satisfied or waived.
17.2 Title Insurance. Buyer may, at Buyer's option, direct the Escrow Agent to
obtain an ALTA Title Extended Policy or to issue additional title insurance endorsements, if
Buyer pays for the extra cost of such additional endorsements for such ALTA Title Policy
over and above what would have been the cost of the CLTA Policy described above,
provided that obtaining an ALTA Title Policy or endorsements is feasible and will not delay
the Close of Escrow. Notwithstanding Buyer's exercise of this option to obtain an ALTA
Title Policy or additional title insurance endorsements, the Title Company's refusal to issue
an ALTA Policy with liability in the amount of the Purchase Price or the requirement that
additional exceptions to such ALTA coverage should be shown shall not be a condition to
Closing or constitute grounds for Buyer's refusing to purchase the Property or any claim for
damages or reduction in the Purchase Price. Buyer shall be solely responsible, at his sole
cost and expense, for timely obtaining an ALTA survey prior to Close of Escrow.
17.3 Termination. If Escrow Agent cannot close the Escrow on or before the
Closing Date, it will nevertheless close the same when all conditions (except as to time)
have been met unless, after the Closing Date and prior to the Close of Escrow, Escrow
Agent receives a written demand for termination from a party not then in default hereunder.
Said written demand shall also concurrently be delivered to the other party hereto. The
making of such demand shall be optional, not mandatory; no delay in the making of such
demand shall affect the rights hereunder of the party making same. In the event such
demand is made upon Escrow Agent, Escrow Agent shall return to each party the funds
and/or documents theretofore delivered to it by such party unless Escrow Agent decides
the protection of its interests requires otherwise. Such return of funds and/or documents
shall not affect the right of either party to enforce any remedy that may otherwise be
available against the other party for breach of this Agreement. If Escrow is terminated as
provided herein, Buyer shall promptly, upon such termination, deliver to Seller copies of all
of the documents previously delivered by Seller to Buyer.
ARTICLE 18
GENERAL PROVISIONS
18.1 Governing Law. This Agreement shall be interpreted and construed in
accordance with California law.
18.2 Counterparts. This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and
the same instrument.
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18.3 Captions and Pronouns. The captions in this Agreement are inserted for
convenience of reference and in no way define, describe, or limit the scope or intent of this
Agreement or any of the provisions of this Agreement. Variations in pronouns have no
bearing on the substantive effect of any provision of this Agreement. The masculine,
feminine, or neuter, singular or plural, may be used interchangeably as the context
expressly, or by necessary implication, may require.
18.4 Binding Effect. This Agreement shall be binding upon and inure to the benefit
of the parties and their respective legal representatives, successors, heirs, and permitted
assigns.
18.5 Modifications; Waiver. No waiver, modification, amendment, discharge, or
change of this Agreement shall be valid unless it is in writing and signed by the party
against which the enforcement of the modification, waiver, amendment, discharge, or
change is sought.
18.6 Entire Agreement. This Agreement contains the entire agreement between
the parties relating to the transactions contemplated by this Agreement and all prior or
contemporaneous agreements, understandings, representations, or statements, oral or
written, are superseded.
18.7 Partial Invalidity. Any provision of this Agreement, which is unenforceable,
invalid, or the inclusion of which would adversely affect the validity, legality, or enforcement
of this Agreement shall have no effect, but all the remaining provisions of this Agreement
shall remain in full effect if the rights and obligations of the parties are not materially
altered.
18.8 Survival. Except as otherwise expressly provided in this Agreement, all
representations, warranties, covenants, agreements, indemnities and other obligations of
Seller and Buyer in this Agreement shall survive the Closing of this transaction.
18.9 No Third-Party Rights. Nothing in this Agreement, express or implied, is
intended to confer upon any person, other than the parties to this Agreement and their
respective successors and assigns, any rights or remedies.
18.10 Time of Essence. Time is of the essence in this Agreement.
18.11 Attorneys’ Fees. If any legal action or any other proceeding, including
arbitration or an action for declaratory relief, is brought to enforce this Agreement or
because of a dispute, breach, default, or misrepresentation in connection with this
Agreement, the prevailing party shall be entitled to recover reasonable attorneys’ fees and
other costs incurred in that action or proceeding, in addition to any other relief to which that
party may be entitled. Prevailing party shall include, without limitation, (a) a party who
dismisses an action in exchange for sums allegedly due; (b) the party that receives
performance from the other party alleged to have breached a covenant or that receives a
desired remedy, where these things are substantially equal to the relief sought in an action;
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or (c) the party determined to be the prevailing party by a court of law.
18.12 Definitions. Definitions of words and phrases used in this Agreement:
18.12.1 Cash. "Cash" means (I) United States currency, or (ii) cashiers
check(s), currently dated, payable to Escrow Agent and honored and paid upon
presentation for payment on or prior to the Closing Date, or (iii) an amount credited
by wire transfer into an Escrow Agent's bank account, or (iv) if Escrow Agent, in its
sole discretion so requires, check(s) in the form required by clause (ii) drawn on
such bank(s) as Escrow Agent may require.
18.12.2 Party. "Party" or "parties" means Buyer and/or Seller, as the context
indicates.
18.12.3 Escrow. "The escrow" means the escrow created hereby.
18.12.4 Close of Escrow. "The Close of Escrow" means the time Seller's
Grant Deed is filed for record.
18.12.5 Opening of Escrow. "The opening of the escrow" means the date
Escrow Agent signs the "Consent of Escrow Agent" attached hereto.
18.12.6 City. “City” means the City of San Diego.
18.12.7 Hazardous Materials. "Hazardous Materials" means:
(a) Those substances included within the definitions of "hazardous
substance," "hazardous waste," "hazardous material," "toxic substance,"
"solid waste," or "pollutant or contaminant" in the Comprehensive
Environmental Response, Compensation and Liability Act of 1980 [42 USCS
§§9601 et seq.]; the Resource Conservation and Recovery Act [42 USCS
§§6901 et seq.]; the Clean Water Act [33 USCS §§ 2601 et seq.]; the Toxic
Substances Control Act [15 USCS §§9601 et seq.]; the Hazardous Materials
Transportation Act [49 USCS §§1801 et seq.] or under any other
Environmental Laws;
(b) Those substances listed in the United States Department of
Transportation Table [49 CFR 172.101], or by the Environmental Protection
Agency, or any successor agency, as hazardous substances [40 CFR
Part 302];
(c) Other substances, materials, and wastes that are or become
regulated or classified as hazardous or toxic under federal, state, or local
laws or regulations; and
(d) Any material, waste, or substance that is:
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(I) a petroleum or refined petroleum product,
(ii) asbestos,
(iii) polychlorinated biphenyl,
(iv) designated as a hazardous substance pursuant to
33 USCS §1321 or listed pursuant to 33 USCS §1317,
(v) a flammable explosive, or
(vi) a radioactive material.
18.12.8 Laws. “Laws” means all governmental laws, statutes, ordinances,
resolutions, rules, regulations, restrictions and requirements applicable to the
Property, whether now or hereafter in effect, and as amended or supplemented from
time to time.
18.12.9 Environmental Laws. “Environmental Laws” means all laws
applicable to the physical condition of the Property or the presence of any substance
thereon, including without limitation the Comprehensive Environmental Response,
Compensation and Liability Act (42 U.S.C. Sections 9601 et seq.), the Resource
Conservation and Recovery Act (42 U.S.C. Section 6901 et seq.), the Clean Water
Act (33 U.S.C. Sections 466 et seq.), the Safe Drinking Water Act (14 U.S.C.
Sections 300f et seq.), the Hazardous Materials Transportation Act (49 U.S.C.
Sections 5101 et seq.), the Toxic Substances control Act (15 U.S.C. Sections 2601
et seq.), the California Hazardous Waste Control Act (California Health and Safety
Code Section 25100 et seq.), the California Hazardous Substances Account Act
(California Health and Safety Code Sections 25300 et seq.), the Safe Drinking Water
and Toxic Enforcement Act (“Proposition 65”)(California Health and Safety Code
Sections 25249.5 et seq., and the Porter-Cologne Water Quality Control Act
(California Health and Safety Code Sections 13000 et seq.), and any similar federal,
state or local laws, all regulations and publications implementing or promulgated
pursuant to the foregoing, as any of the foregoing may be amended or
supplemented from time to time.
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18.13 Possession. Possession of the Property is to be given to Buyer on the
Closing Date.
The parties have executed this Agreement as of the date first above written.
SELLER:
OTAY WATER DISTRICT, a municipal water
district formed under the Municipal Water District
Act of 1911
By: ___________________________________
Mark Watton, General Manager
Approved as to Form:
___________________________________
General Counsel
BUYER:
KEARNY PCCP OTAY 311, LLC, a Delaware Limited
Liability Company
By: ___________________________________
Its: ___________________________________
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CONSENT OF ESCROW AGENT
The undersigned Escrow Agent hereby agrees to (i) accept the foregoing Agreement
and Instructions, (ii) be escrow agent under said Agreement and Instructions, and (iii) be
bound by said Agreement and Instructions in the performance of its duties as escrow
agent; provided, however, the undersigned shall have no obligations, liability or
responsibility under (i) this Consent or otherwise, unless and until said Agreement and
Instructions, fully signed by the parties, has been delivered to the undersigned, or (ii) any
amendment to said Agreement and Instructions unless and until the same shall be
accepted by the undersigned in writing.
Dated: _________________ FIRST AMERICAN TITLE INSURANCE COMPANY
By: _____________________________________
EXHIBIT C
RECORDING REQUESTED BY
AND AFTER RECORDATION
MAIL TO: For Recorder's Use
OTAY WATER DISTRICT
2554 SWEETWATER SPRINGS BOULEVARD
SPRING VALLEY, CA 91978-2004
APN: 644-061-28 Documentary Transfer Tax: None
(Exempt under Rev & Tax Code Section 11922)
GRANT OF EASEMENT OF RIGHT-OF-WAY TO
OTAY WATER DISTRICT
For good and valuable consideration, receipt of which is hereby acknowledged, the undersigned KEARNY
PCCP OTAY 311, LLC, a Delaware limited liability company, as Grantor hereby GRANT(S) to OTAY
WATER DISTRICT, a municipal water district formed under the Municipal Water District Law of 1911, as
amended, situated in the County of San Diego, State of California, as Grantee, a permanent easement of right-
of-way for the purpose of laying underground water pipelines and sewer pipelines and laterals, trunk lines,
collection lines and laterals, sewer manholes and other underground and surface structures appurtenant to said
water pipelines or sewer lines, including but not limited to power lines for transmission and communication
purposes, pumps, regulators, valves and access roads or areas within said easement, hereinafter referred to as
"said facilities," to provide water for public purposes and to enable the United States to fulfil its water sharing
obligations to Mexico when the need arises, together with the right to construct, operate, maintain, repair and
replace said facilities, and the right of ingress and egress for such purposes. Said easement is described and/or
depicted as follows:
(See Exhibit “A” attached hereto and made a part hereof)
Grantor reserves the right to use said land at Grantor's own risk for any and all purposes not conflicting,
interfering or inconsistent with Grantee's use of, and access to, said facilities. Grantor waives any right under
Civil Code section 845, and any right to compel Grantee to grade, surface or otherwise improve or maintain
said easement area as a roadway.
Grantor shall not increase or decrease or permit to be increased or decreased the ground elevations of said
easement existing at the time this document is executed, nor construct or permit to be constructed any
permanent building, structures, improvements or other encroachment upon said easement which will cause
damage to or threaten the safety of any of said facilities of Grantee placed within the easement.
{
Grantee may remove from the easement any building, structure, improvement or other encroachments thereon
conflicting, interfering or inconsistent with its use for the purposes hereby granted. Grantee shall have the
right to install its own gates and locks in all fences, which now cross or may hereafter cross said easement.
Grantee agrees on its own behalf and on behalf of its successors in interest that it will indemnify and hold
harmless Grantor for any damages to the property, which result from Grantee’s use of the easement and
maintenance and repair operations by Grantee’s pipeline within the easement.
Grantor may use said land to construct and maintain a public highway on the property and to the extent of such
use may surface or pave the area, subject to the restrictions as to changes in existing ground elevations and
indemnifications set forth above.
Grantor may, at Grantor's expense, and subject to Grantee's prior written consent, relocate the above mentioned
facilities in the event such conflict with future development of said property, provided that Grantor does not
cause discontinuance of service to any area, and provided, further, that Grantee receives, without expenses to
Grantee, an easement comparable to this easement for said relocated facilities. Except as otherwise provided
herein, Grantee shall never be required to relocate or alter in any way the facilities installed pursuant to this
grant of easement, or to bear any cost in connection therewith as a result of changes in the location of any said
facilities.
Grantee shall have the right to transfer and assign all or a portion of this easement to its successor in interest,
or to any other political subdivision or public utility for use of the above stated purpose.
Date: _____________________ APPROVAL:
By ____________________________
Name
Title
KEARNY PCCP OTAY 311, LLC,
a Delaware Limited Liability Company
{
[Each signature of Grantor must be acknowledged in the form attached hereto]
DISTRICT CERTIFICATE OF ACCEPTANCE
This is to certify that the interest in real property conveyed by the Grant of Easement of Right of Way to Otay Water
District dated ___________________, 2018 from the KEARNY PCCP OTAY 311, LLC, a Delaware limited liability
company, to OTAY WATER DISTRICT, a municipal water district, is hereby accepted by order of the Board of
Directors pursuant to the authority conferred by Resolution No. 1829, adopted on February 23, 1981, and the Grantee
consents to recordation thereof by its duly authorized officer.
Dated: __________________________ By: _____________________________________
Susan Cruz, District Secretary
Otay Water District
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
GRANTOR’S SIGNATURE ACKNOWLEDGEMENT
State of California )
) ss
County of )
On ____________________ before me, DATE NAME, TITLE OF OFFICER - E.G., "JANE DOE, NOTARY PUBLIC"
personally appeared
NAME(S) OF SIGNER(S)
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal.
_________________________________
Signature of Notary Public
(Notary Seal)
A notary public or other officer completingthis certificateverifies
only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: February 7, 2018
SUBMITTED BY:
Tenille M. Otero,
Communications Officer
PROJECT: Various DIV. NO. ALL
APPROVED BY:
Mark Watton, General Manager
SUBJECT: Authorize Fourth Amendment to Extend the SVPR Communications
Contract and to Increase the Contract Budget Amount
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District (District) Board of Directors authorize
the General Manager to execute a fourth amendment with SVPR
Communications’ (the Consultant) for communications, public
relations, media relations, and other related support services to
extend the contract an additional 24 months ending January 31, 2020
and to increase the contract amount by $60,000 with a total contract
amount not-to-exceed $135,000 ending January 31, 2020.
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
To obtain Board authorization for the General Manager to authorize an
expenditure above the $75,000 threshold. The fourth amendment will
allow an extension of the agreement with SVPR Communications for an
additional 24 months through January 31, 2020, increasing the
contract amount above the General Manager’s authorization of $75,000.
Staff is asking the Board to authorize the fourth amendment for SVPR
Communications for communications, public relations, media relations,
and other related support services.
2
ANALYSIS:
Otay Water District staff has worked with the Consultant since
November 6, 2015 on a variety of projects including the Fair Water
Rates Campaign. During that campaign, the Consultant advised,
coordinated, worked with and received direction from District staff,
the project coordinator, and contract officer with the goal of
building, engaging and sustaining strong community support and
building awareness for fair recycled water rates for South Bay and
East County residents.
The Consultant is integral in assisting staff with tracking issues
and media relations related to the Rosarito Desalination Project and
although the project has stalled or slowed down, the Consultant
continues to monitor issues on the Mexican side of the border.
The Consultant also supports the District by providing community
outreach and community/media relations services as directed by staff.
These services help to extend District staff’s reach to maintain a
positive public perception of the District with community
stakeholders, elected officials, homeowners associations, local
government, chambers of commerce, planning groups, members of the
general public, and the media.
Moreover, the Consultant supports the District in its media relations
program by assisting District staff with op-ed placement, arranging
and conducting on-camera interviews with Spanish-language media,
tracking Spanish-language coverage, and District-related activities
for English and Spanish language print, radio, TV, and web-based
outlets. The Consultant’s services also include writing and/or
editing press releases and media advisories, staging and promoting
media or other special events, and responding to media inquiries,
In addition, the Consultant works with District staff to produce
collateral in Spanish language, including social media and web
content, newsletter articles, bill inserts, fact sheets or flyers,
and more. The Consultant also provides assistance in audio/visual
Spanish language translations, and voiceover narrations of the
District’s audio/visual content.
The Consultant attends meetings and produces reports and updates on
the status of project activities and progress toward achieving
objectives as requested by District staff.
Many of the District’s projects are ongoing that the Consultant has
experience with and knowledge of, and District staff believes that
3
preserving that consistency of knowledge-base is critical to
maintaining an uninterrupted public perception, work flow, and
training process. Based on past work, experience, knowledge,
contacts, and access to key stakeholders in Mexico, in the District’s
service area, and the San Diego region, the District agrees that SVPR
Communications is uniquely qualified to help the District best meet
its communications and public relations needs as well as help the
District maintain continuity of its relationships and partnerships in
the community, and a consistent brand within the District’s service
area and among other agencies.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
FY2018 - $10,000
FY2019 - $30,000
FY2020 - $20,000
LEGAL IMPACT:
None
No Attachments
ATTACHMENT A
SUBJECT/PROJECT:
Authorize Fourth Amendment to Extend the SVPR
Communications Contract and to Increase the Contract Budget
Amount
COMMITTEE ACTION:
The Public Relations, Legal and Legislative Committee reviewed this
item at a meeting held on January 23, 2018 and the following comments
were made:
Staff is requesting that the board approve a fourth amendment with
SVPR Communications for communications, public relations, media
relations, and other related support services to extend the contract
an additional 24 months ending January 31, 2020 and to increase the
contract amount by $60,000 with a total contract amount not-to-
exceed $135,000 ending January 31, 2020.
Staff reviewed information in the staff report.
In response to an inquiry from the Committee, staff reviewed SVPR
Communications’ contract history. The first term of the agreement
was from November 6, 2015 to June 30, 2016 with a fee of $4,000 per
month and a contract total not-to-exceed $36,000. An amendment
dated July, 1, 2016 extended the contract to December 31, 2016 and
decreased the monthly fee to $2,900 with a contract aggregate total
not-to-exceed $50,000. A second amendment dated February 1, 2017
extended the contract term to October 31, 2017. The monthly fee was
further decreased to $2,500 per month with an aggregate contract
total not-to-exceed $75,000. A third amendment extended the
contract length from November 1, 2017 to January 31, 2018 with the
same monthly fee rate of $2,500 and the total not-to-exceed amount
remained at $75,000. Staff noted that the average hourly fee is
about $175 an hour. At the reduced monthly fee of $2,500, the
consultant has been working about 14 hours per month.
It was indicated that in the upcoming year, as the expenditures for
the desalination project will be minimized, SVPR Communications’
efforts will be shifted towards enhancing the District’s website and
other collaterals with more Spanish content along with the support
services listed in the staff report. It was noted that SVPR
Communications does an excellent job in translating information into
Spanish.
Upon completion of the discussion, the committee supported staffs’
recommendation and presentation to the full board on the consent
calendar.
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: February 7, 2018
SUBMITTED BY:
Rita Bell, Finance Manager
PROJECT: DIV. NO. All
APPROVED BY:
Kevin Koeppen, Assistant Chief Financial Officer
Joseph R. Beachem, Chief Financial Officer
Mark Watton, General Manager
SUBJECT: Appointment of Auditor for Fiscal Year Ending June 30, 2018
GENERAL MANAGER’S RECOMMENDATION:
That the Board authorize the General Manager to sign the engagement
letters from the auditing firm of Teaman, Ramirez & Smith, Inc., to
contract for audit services for fiscal year ending June 30, 2018.
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
The District is required to retain the services of an independent
accounting firm to perform an audit of the District’s financial
records each year.
ANALYSIS:
At the Board meeting on January 7, 2014, the Board approved Teaman,
Ramirez & Smith, Inc., as the District’s auditors for a 1-year
contract, with four (4) 1-year options, with each option year subject
to Board review and approval. On February 1, 2017, the Board
authorized the General Manager to engage Teaman, Ramirez & Smith,
Inc., for the third option year for the FY 2017 audit.
Staff is recommending the appointment of Teaman, Ramirez & Smith,
Inc. as the District’s auditors for FY 2018, in conjunction with the
fourth and final 1-year contract option. This is based on their
staff’s knowledge of the District’s operations and finances, their
technical qualifications, and their performance as the District’s
auditors during the fiscal years 2014, 2015, 2016 and 2017 audits.
The audit will consist of four major components: 1) Standard audit
services, to provide an audit opinion on the District’s financial
statements; 2) Agreed upon procedures related to the District’s
Investment Policy procedures, to issue a report on staff’s compliance
with District policy; 3) A State Controllers Report, required by the
State of California; and 4) Assistance in preparation of the
District’s Comprehensive Annual Financial Report (CAFR).
The following is a tentative planning schedule for the major
activities involved in completing the FY 2018 financial audit:
May-2018: Pre-audit fieldwork (3–4 days).
Aug-2018: Year-end audit fieldwork (4–5 days).
Nov-2018: Board presentation of the audited financial statements.
Dec-2018: CAFR submission to Government Finance Officers
Association (GFOA).
FISCAL IMPACT:
The fee for auditing services for the fiscal year ending June 30,
2018, will be $28,600. This is an increase of $850 over the prior
year’s fee.
STRATEGIC GOAL:
The District ensures its continued financial health through long-term
financial planning, formalized financial policies, enhanced budget
controls, fair pricing, debt planning, and improved financial
reporting.
LEGAL IMPACT:
Required by law.
Attachments: A) Committee Action Form
B) Audit Engagement Letter
C) State Controllers Report Engagement Letter
D) Agreed Upon Procedures Engagement Letter
ATTACHMENT A
SUBJECT/PROJECT:
Appointment of Auditor for Fiscal Year Ending June 30, 2018
COMMITTEE ACTION:
The Finance and Administration Committee reviewed this item at a
meeting held on January 24, 2018 and the following comments were made:
Staff is requesting that the board approve an engagement letter with
the auditing firm of Teaman, Ramirez and Smith, Inc. (TRS), to
provide audit services to the District for the fiscal year ending
June 30, 2018.
Staff reviewed information in the staff report.
In response to an inquiry from the Committee, staff indicated that
this year there is a disclosure requirement for GASB 75
(Governmental Accounting Standards Board) related to the OPEB (Other
Post Employee Benefits) liability. This will involve quite a bit of
additional work and this is one of the reasons why their fee is
increasing 3% (or $850).
It was clarified that this is the fourth one year option on TRS’
contract, thus, their fifth and last year to perform the District’s
audit. Next year the District will request proposals from audit
firms to perform the District’s FY 2019 audit. Staff noted that
this is not a requirement, but is a District practice to send a RFP
(Request for Proposal) every five years.
Upon completion of the discussion, the committee supported staffs’
recommendation and presentation to the full board as an action item.
-=rc ~s TEAMAN, RAMIREZ & SMITH, INC. ~· I ~ c E R T I F I E D p u B l I c A c c 0 u N T A N T s
Otay Water District
2554 Sweetwater Springs Blvd
Spring Valley, CA 91778-2004
January 10, 2018
We are pleased to confnm our understanding of the services we are to provide the Otay Water District
(the "District") for the year ended June 30, 2018. We will audit the fmancial statements of the business-
type activities, and each major fund, including the related notes to the fmancial statements, which
collectiveiy comprise the basic financial statements, of the Otay Water District as of and for the year
ended June 30, 2018. Accounting standards generally accepted in the United States provide for certain
required supplementary information (RSI), such as management's discussion and analysis (MD&A), to
supplement the District's basic financial statements. Such information, although not a part of the basic
fmancial statements, is required by the Government Accounting Standards Board who considers it to be
an essential part of financial reporting for placing the basic fmancial statements in an appropriate
operational, economic, or historical contest. As part of our engagement, we will apply certain limited
procedures to the District's RSI in accordance with auditing standards generally accepted in the United
States of America. These limited procedures will consist principally of inquiries of management regarding
the methods of preparing the information and comparing the information for consistency with
management's responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic fmancial statements. We will not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with sufficient evidence to
express an opinion or provide any assurance. The following RSI is required by generally accepted
accounting principles and will be subjected to certain limited procedures, but will not be audited:
1. Management's Discussion and Analysis
2. Schedule of Funding Progress for DPHP
3. Schedule of Changes in the Net Pension Liability and Related Ratios
4. Schedule of Contributions
The following other information accompanying the fmancial statements will not be subjected to the
auditing procedures applied in our audit of the fmancial statements, and for which our auditors' report
will not provide an opinion or any assurance on that other information.
1. Introductory Section
2. Statistical Section
Audit Objectives .
The objective of our audit is the expression of opinions as to whether your fmancial statements are fairly
presented, in all material respects, in conformity with U.S. generally accepted accounting principles and
to report on the fairness of the supplementary information referred to in the second paragraph when
considered in relation to the financial statements as a whole. Our audit will be conducted in accordance
with auditing standards generally accepted in the United States of America and the standards for fmancial
audits contained in Government Auditing Standards, issued by the Comptroller General of the United
States, and will include tests of the accounting records of the District and other procedures we consider
necessary to enable us to express such opinions. We will issue a written report upon completion of our
Richard A. Teaman, CPA eo David M. Ramirez, CPA eo Javier H. Carrillo, CPA eo Bryan P. Daugherty, CPA eo Joshua J. Calhoun, CPA
4201 Brockton Avenue Suite 100 Riverside CA 92501 951.274.9500 TEL 951.274.7828 FAX www.trscpas.com
B-1
audit of the District’s financial statements. Our report will be addressed to the Board of Directors of the
District. We cannot provide assurance that unmodified opinions will be expressed. Circumstances may
arise in which it is necessary for us to modify our opinions or add emphasis-of-matter or other-matter
paragraphs. If our opinions on the financial statements are other than unmodified, we will discuss the
reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form
or have not formed opinions, we may decline to express opinions or issue reports, or may withdraw from
this engagement.
We will also provide a report (that does not include an opinion) on internal control related to the financial
statements and compliance with the provisions of laws, regulations, contracts, and grant agreements,
noncompliance with which could have a material effect on the financial statements as required by
Government Auditing Standards. The report on internal control and on compliance and other matters will
include a paragraph that states (1) that the purpose of the report is solely to describe the scope of testing
of internal control and compliance, and the results of that testing, and not to provide an opinion on the
effectiveness of the District’s internal control on compliance, and (2) that the report is an integral part of
an audit performed in accordance with Government Auditing Standards in considering the District’s
internal control and compliance. The paragraph will also state that the report is not suitable for any other
purpose. If during our audit we become aware that the District is subject to an audit requirement that is
not encompassed in the terms of this engagement, we will communicate to management and those
charged with governance that an audit in accordance with U.S. generally accepted auditing standards and
the standards for financial audits contained in Government Auditing Standards may not satisfy the
relevant legal, regulatory, or contractual requirements.
Audit Procedures - General
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements; therefore, our audit will involve judgment about the number of transactions to be
examined and the areas to be tested. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of significant accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements. We will plan and perform the audit to
obtain reasonable rather than absolute assurance about whether the financial statements are free of
material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of
assets, or (4) violations of laws or governmental regulations that are attributable to the District or to acts
by management or employees acting on behalf of the District. Because the determination of abuse is
subjective, Government Auditing Standards do not expect auditors to provide reasonable assurance of
detecting abuse.
Because of the inherent limitations of an audit, combined with the inherent limitations of internal control,
and because we will not perform a detailed examination of all transactions, there is a risk that material
misstatements may exist and not be detected by us, even though the audit is properly planned and
performed in accordance with U.S. generally accepted auditing standards and Government Auditing
Standards. In addition, an audit is not designed to detect immaterial misstatements or violations of laws
or governmental regulations that do not have a direct and material effect on the financial statements.
However, we will inform the appropriate level of management of any material errors or any fraudulent
financial reporting or misappropriation of assets that come to our attention. We will also inform the
appropriate level of management of any violations of laws or governmental regulations that come to our
attention, unless clearly inconsequential, and of any material abuse that comes to our attention. Our
responsibility as auditor is limited to the period covered by our audit and does not extend to later periods
for which we are not engaged as auditors.
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Our procedures will include tests of documentary evidence supporting the transactions recorded in the
accounts, and may include tests of the physical existence of inventories, and direct confirmation of
receivables and certain other assets and liabilities by correspondence with selected individuals, funding
sources, creditors, and financial institutions. We will request written representations from your attorneys
as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our
audit, we will require certain written representations from you about your responsibilities for the financial
statements; compliance with laws, regulations, contracts, and grant agreements; and other responsibilities
required by generally accepted auditing standards.
,
Audit Procedures - Internal Controls
Our audit will include obtaining an understanding of the District and its environment, including internal
control sufficient to assess the risks of material misstatement of the financial statements and to design the
nature, timing, and extent of further audit procedures. Tests of controls may be performed to test the
effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud
that are material to the financial statements and to preventing and detecting misstatements resulting from
illegal acts and other noncompliance matters that have a direct and material effect on the financial
statements. Our tests, if performed, will be less in scope than would be necessary to render an opinion on
internal control and, accordingly, no opinion will be expressed in our report on internal control issued
pursuant to Government Auditing Standards.
An audit is not designed to provide assurance on internal control or to identify significant deficiencies or
material weaknesses. However, during the audit, we will communicate to management and those charged
with governance internal control related matters that are required to be communicated under AICPA
professional standards and Government Auditing Standards.
Audit Procedures - Compliance
As part of obtaining reasonable assurance about whether the financial statements are free of material
misstatement, we will perform tests of the District’s compliance with the provisions of applicable laws,
regulations, contracts, agreements, and grants. However, the objective of our audit will not be to provide
an opinion on overall compliance and we will not express such an opinion in our report on compliance
issued pursuant to Government Auditing Standards.
Other Services
We will also assist in preparing the financial statements and related notes of the District in conformity
with U.S. generally accepted accounting principles and prepare the State Controllers Report (see separate
engagement letter) in conformity of the requirements of the California State Controller’s Office based on
information provided by you. These nonaudit services do not constitute an audit under Government
Auditing Standards and such services will not be conducted in accordance with Government Auditing
Standards. We will perform the services in accordance with applicable professional standards. The other
services are limited to the financial statement services previously defined. We, in our sole professional
judgment, reserve the right to refuse to perform any procedure or take any action that could be construed
as assuming management responsibilities.
B-1
Management Responsibilities
Management is responsible for establishing and maintaining effective internal controls, including
evaluating and monitoring ongoing activities, to help ensure that appropriate goals and objectives are met;
following laws and regulations; and ensuring that management is reliable and financial information is
reliable and properly reported. Management is also responsible for implementing systems designed to
achieve compliance with applicable laws, regulations, contracts, and grant agreements. You are also
responsible for the selection and application of accounting principles, for the preparation and fair
presentation of the financial statements in conformity with U.S. generally accepted accounting principles,
and for compliance with applicable laws and regulations and the provisions of contracts and grant
agreements.
Management is also responsible for making all financial records and related information available to us
and for the accuracy and completeness of that information. You are also responsible for providing us with
(1) access to all information of which you are aware that is relevant to the preparation and fair
presentation of the financial statements, (2) additional information that we may request for the purpose of
the audit, and (3) unrestricted access to persons within the government from whom we determine it
necessary to obtain audit evidence.
Your responsibilities include adjusting the financial statements to correct material misstatement and for
confirming to us in the written representation letter that the effects of any uncorrected misstatements
aggregated by us during the current engagement and pertaining to the latest period presented are
immaterial, both individually and in the aggregate, to the financial statements taken as a whole.
You are responsible for the design and implementation of programs and controls to prevent and detect
fraud, and for informing us about all known or suspected fraud affecting the District involving (1)
management, (2) employees who have significant roles in internal control, and (3) others where the fraud
or illegal acts could have a material effect on the financial statements. Your responsibilities include
informing us of your knowledge of any allegations of fraud or suspected fraud affecting the District
received in communications from employees, former employees, grantors, regulators, or others. In
addition, you are responsible for identifying and ensuring that the District complies with applicable laws,
regulations, contracts, agreements, and grants for taking timely and appropriate steps to remedy any fraud
and noncompliance with provisions of laws, regulations, contracts or grant agreements, or abuse that we
report.
You are responsible for the preparation of the supplementary information, which we have been engaged
to report on, in conformity with U.S. generally accepted accounting principles. You agree to include our
report on the supplementary information in any document that contains and indicates that we have
reported on the supplementary information. You also agree to include the audited financial statements
with any presentation of the supplementary information that includes our report thereon or make the
audited financial statements readily available to users of the supplementary information no later than the
date the supplementary information is issued with our report thereon. Your responsibilities include
acknowledging to us in the written representation letter that (1) you are responsible for presentation of the
supplementary information in accordance with GAAP; (2) you believe the supplementary information,
including its form and content, is fairly presented in accordance with GAAP; (3) the methods of
measurement or presentation have not changed from those used in the prior period or if they have
changed the reasons for such changes; and (4) you have disclosed to us any significant assumptions or
interpretations underlying the measurement or presentation of the supplementary information.
B-1
Management is responsible for establishing and maintaining a process for tracking the status of audit
findings and recommendations. Management is also responsible for identifying and providing report
copies of previous financial audits, attestation engagements, performance audits or other studies related to
the objectives discussed in the Audit Objectives section of this letter. This responsibility includes
relaying to us corrective actions taken to address significant findings and recommendations resulting from
those audits, attestation engagements, performance audits, or other studies. You are also responsible for
providing management’s views on our current findings, conclusions, and recommendations, as well as
your planned corrective actions, for the report, and for the timing and format for providing that
information.
You agree to assume all management responsibilities relating to the financial statements and related notes
and any other nonaudit services we provide. You will be required to acknowledge in the management
representation letter our assistance with preparation of the financial statements and related notes and that
you have reviewed and approved the financial statements and related notes prior to their issuance and
have accepted responsibility for them. Further, you agree to oversee the nonaudit services by designating
an individual, preferably from senior management, with suitable skill, knowledge, or experience; evaluate
the adequacy and results of those services; and accept responsibility for them.
With regard to the electronic dissemination of audited financial statements, including financial statements
published electronically on your website, you understand that electronic sites are a means to distribute
information and, therefore, we are not required to read the information contained in these sites or to
consider the consistency of other information in the electronic site with the original document.
Engagement Administration, Fees, and Other
We understand that your employees will prepare all cash or other confirmations we request and will
locate any documents selected by us for testing.
We will provide copies of our reports to the District; however, management is responsible for distribution
of the reports and the financial statements. Unless restricted by law or regulation, or containing privileged
and confidential information, copies of our reports are to be made available for public inspection.
The audit documentation for this engagement is the property of Teaman, Ramirez & Smith, Inc. and
constitutes confidential information. However, pursuant to authority given by law or regulation, we may
be requested to make certain audit documentation available to grantor agencies or their designee, a federal
agency providing direct or indirect funding, or the U.S. Government Accountability Office for purpose of
a quality review of the audit, to resolve audit findings, or to carry out oversight responsibilities. We will
notify you of any such request. If requested, access to such audit documentation will be provided under
the supervision of our firm. Furthermore, upon request, we may provide copies of selected audit
documentation to the aforementioned parties. These parties may intend, or decide, to distribute the copies
or information contained therein to others, including other governmental agencies. In such cases, Teaman,
Ramirez & Smith, Inc. is not responsible for the distribution of the copies or information contained
therein.
The audit documentation for this engagement will be retained for a minimum of five years after the report
release date or for any additional period requested by a grantor or federal agency. If we are aware that a
federal awarding agency or auditee is contesting an audit finding, we will contact the party(ies) contesting
the audit finding for guidance prior to destroying the audit documentation.
We expect to begin our fmal audit fieldwork approximately in August 2018 and to issue our reports
approximately in October 2018. Richard Teaman is the engagement partner and is responsible for
supervising the engagement and signing the reports or authorizing another individual to sign them. Our
fee for these services will be $28,600. Our invoices for these fees will be rendered as work progresses and
are payable on presentation. If we elect to terminate our services for nonpayment, our engagement will be
deemed to have been completed upon written notification of termination, even if have not completed our
report. You will be obligated to compensate us for all time expended through the date of termination. The
above fee is based on anticipated cooperation from your personnel and the assumption that unexpected
circumstances will not be encountered during the audit. If significant additional time is necessary, we will
discuss it with you and arrive at a new fee estimate before we incur the additional costs.
We appreciate the opportunity to be of service to the Otay Water District and believe this letter accurately
summarizes the significant terms of our engagement. If you have any questions, please let us know. If you
agree with the terms of our engagement as described in this letter, please sign the enclosed copy and
return it to us.
RESPONSE:
Very truly yours,
TEAMAN, RAMIREZ & SMITH, INC.
Richard A. Teaman
Certified Public Accountant
This letter correctly sets forth the understanding of the Otay Water District.
By:
Title:
Date:
B-1
-=rc ~s TEAMAN, RAMIREZ & SMITH, INC. ~· I ~ c E R T I F I E 0 p u B l I c A c c 0 u N T A N T s
Otay Water District
2554 Sweetwater Springs Blvd
Spring Valley, CA 91778-2004
January 10, 2018
We are pleased to confrrm our understanding of the services we are to provide for the year ended June 30,2018.
We will prepare the Annual Financial Transactions Report (State Controller's Report) of the Otay Water District
(the "District"), as of and for the year ended June 30, 2018 in the forms prescribed by the California State Controller
and perform a compilation engagement with respect to the State Controller's Report.
The supplementary information accompanying the compiled State Controller's Report will be presented for purposes
of additional analysis. The supplementary information (U.S. Bureau of the Census form) will be compiled from
information that is the representation of management. We will not compile the Government Compensation in
California (GCC) Report or other supplementary information. We will not audit or review the supplementary
information. We will not express an opinion, a conclusion, or provide any assurance on such supplementary
infmmation.
We will assist the Finance Department in adjusting the books of accounts with the objective that the Finance
Department will be able to prepare a working trial balance from which the State Controller's Reports can be
prepared. The Finance Department will provide us with a detailed trial balance and any supporting schedules we
require.
Our Responsibilities
The objective of our engagement is to-
1) prepare the State Controller's Report in accordance with the format prescribed by the California State
Controller based on information provided by you and in accordance with accounting principles generally
accepted in the United States of America, and
2) apply accounting and fmancial reporting expertise to assist you in the presentation of the State Controller's
Report without undertaking to obtain or provide any assurance that there are no material modifications that
should be made to those forms in order for them to be in accordance with the format prescribed by the
California State Controller and accounting principles generally accepted in the United States of America.
We will conduct our compilation engagement in accordance with Statements on Standards for Accounting and
Review Services (SSARS) promulgated by the Accounting and Review Services Committee of the AICP A and
comply with applicable professional standards, including the AICPA's Code of Professional Conduct and its ethical
principles of integrity, objectivity, professional competence, and due care, when performing the compilation
engagement.
We are not required to, and will not, verify the accuracy or completeness of the information you will provide to us
for the engagement or otherwise gather evidence for the purpose of expressing an opinion or a conclusion.
Accordingly, we will not express an opinion or a conclusion nor provide any assurance on the State Controller's
Report.
Richard A. Teaman, CPA " David M. Ramirez, CPA " Javier H. Carrillo, CPA " Bryan P. Daugherty, CPA " Joshua J. Calhoun, CPA
4201 Brockton Avenue Suite 100 Riverside CA 92501 951.274.9500 TEL 951.274.7828 FAX www.trscpas.com
Our engagement cannot be relied upon to identify or disclose any misstatements in the State Controller’s Report,
including those caused by fraud or error, or to identify or disclose any wrongdoing within the District or
noncompliance with laws and regulations.
We, in our sole professional judgment, reserve the right to refuse to perform any procedure or take any action that
could be construed as assuming management responsibilities.
Your Responsibilities
The engagement to be performed is conducted on the basis that you acknowledge and understand that our role is to
assist you in the preparation of the State Controller’s Report in accordance with the format prescribed by the
California State Controller and accounting principles generally accepted in the United States of America and assist
you in the presentation of the State Controller’s Report in accordance with the format prescribed by the California
State Controller and accounting principles generally accepted in the United States of America. You have the
following overall responsibilities that are fundamental to our undertaking the engagement in accordance with
SSARS:
1) The selection of the format prescribed by the California State Controller and accounting principles generally
accepted in the United States of America as the financial reporting framework to be applied in the preparation
of the State Controller’s Report.
2) The preparation and fair presentation of the State Controller’s Report in accordance with the format prescribed
by the California State Controller and the accounting principles generally accepted in the United States of
America.
3) The design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of the State Controller’s Report.
4) The prevention and detection of fraud.
5) To ensure that the District complies with the laws and regulations applicable to its activities.
6) The accuracy and completeness of the records, documents, explanations, and other information, including
significant judgments, you provide to us for the engagement.
7) To provide us with—
• access to all information of which you are aware that is relevant to the fair presentation of the State
Controller’s Report and supplementary information, such as records, documentation, and other matters.
• additional information that we may request from you for the purpose of the compilation engagement.
• unrestricted access to persons within the entity of whom we determine it necessary to make inquiries.
You are also responsible for all management decisions and responsibilities and for designating an individual with
suitable skills, knowledge, and experience to oversee our services and the preparation of your State Controller’s
Report. You are responsible for evaluating the adequacy and results of the services performed and accepting
responsibility for such services.
Our Report
As part of our engagement, we will issue a report that will state that we did not audit or review the State Controller's
Report and that, accordingly, we do not express an opinion, a conclusion, or provide any assurance on them. There
may be circumstances in which the report differs from the expected form and content. If, for any reason, we are
unable to complete the compilation of your State Controller's Report, we will not issue a report on such prescribed
forms as a result of this engagement.
Our report will disclose that the State Controller's Report is presented in a prescribed form in accordance with the
requirements of the California State Controller and is not intended to be a presentation in accordance with
accounting principles generally accepted in the United States of America.
You agree to include our accountant's compilation report in any document containing the State Controller's Report
that indicates we have performed a compilation engagement on such prescribed forms and, prior to inclusion of the
report, to ask our permission to do so.
Other Relevant Information
Richard Teaman is the engagement partner and is responsible for supervising the engagement and signing the report or
authorizing another individual to sign it.
Our fee to prepare the report is included in the fee quoted in the engagement letter to conduct the June 30, 2018
financial audit of the District dated January 10, 2018. The fee is based on anticipated cooperation from your personnel
and the assumption that unexpected circumstances will not be encountered during the work performed. If significant
additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional
costs.
We appreciate the opportunity to be of service to you and believe this letter accurately summarizes the significant terms
of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as
prescribed in this letter, please sign the enclosed copy and return it to us.
RESPONSE:
Very truly yours,
TEAMAN, RAMIREZ & SMITH, INC.
Richard A. Teaman
Certified Public Accountant
This letter correctly sets fmth the understanding of the Otay Water District.
By: ___________________ _
Title:. ______________________ _
Date: _______________________ _
-=rc ~s TEAMAN, RAMIREZ & SMITH, INC. ~· I ~ c E R T I F I E 0 p u 8 l I c A c c 0 u N T A N T s
Otay Water District
2554 Sweetwater Springs Blvd
Spring Valley, CA 91778-2004
January 10,2018
We are pleased to confirm our understanding of the nature and limitations of the services we are to provide for the Otay
Water District (the "District").
We will apply the agreed-upon procedures which the District's management has specified, listed in the attached schedule,
for the investments of the District for the fiscal year ending June 30, 2018 (prepared in accordance with generally accepted
accounting principles). This engagement is solely to assist the District's management in evaluating the compliance with
the District's investment policy. Our engagement to apply agreed-upon procedures will be conducted in accordance with
attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of the
procedures is solely the responsibility of those parties specified in the report and we will require an acknowledgement in
writing of that responsibility. Consequently, we make no representation regarding the sufficiency of the procedures
described in the attached schedule either for the purpose for which this report has been requested or for any other purpose.
Because the agreed-upon procedures listed in the attached schedule do not constitute an examination, we will not express
an opinion on the District's investments or any elements, accounts, or items thereof. In addition, we have no obligation to
perform any procedures beyond those listed in the attached schedule.
We plan to begin our procedures in approximately August 2018 and, unless unforeseeable problems encountered, the
engagement should be completed in October 2018.
We will issue a written report upon completion of our engagement that lists the procedures performed and our findings.
Our repmt will be addressed to the Board of Directors and senior management of the District. If, for any reason, we are
unable to complete any of the procedures, we will describe in oqr report any restrictions on the performance of the
procedures, or not issue a report and withdraw from this engagement. You understand that the report is intended solely for
the infonnation and use of the District, and should not be used by anyone other than these specified parties. Our report will
contain a paragraph indicating that had we performed additional procedures, other matters might have come to our
attention that would have been repmted to you.
An agreed-upon procedures engagement is not designed to detect instances of fraud or noncompliance with laws or
regulations; however, we will communicate to you any known and suspected fraud and noncompliance with laws or
regulations affecting the investments of the District that come to our attention. In addition, if in connection with this
engagement, matters come to our attention that contradict the investments of the District, we will disclose those matters in
our report.
You are responsible for the presentation of the investments of the District in accordance with generally accepted
accounting principles; and for selecting the criteria and determining that such criteria are appropriate for your purposes.
You are also responsible for, and agree to provide us with, a written assertion about the investments of the District. In
addition, you are responsible for providing us with (1) access to all information of which you are aware that is relevant to
the performance of the agreed-upon procedures on the subject matter, (2) additional information that we may request for
the purpose of performing the agreed-upon procedures, and (3) unrestricted access to persons within the District from
whom we detennine it necessary to obtain evidence relating to perfonning those procedures. You are responsible for
Richard A. Teaman, CPA 5 David M. Ramirez, CPA 5 Javier H. Carrillo, CPA 5 Bryan P. Daugherty, CPA 5 Joshua J. Calhoun, CPA
4201 Brockton Avenue Suite 100 Riverside CA 92501 951.274.9500 TEL 951.274.7828 FAX www.trscpas.com
assuming all management responsibilities and for overseeing any nonattest services we provide by designating an
individual, preferably within senior management, who possesses suitable skill, knowledge, and/or experience. In addition,
you are responsible for evaluating the adequacy and results of the services performed and accepting responsibility for the
results of such services.
At the conclusion of our engagement, we will require certain written representations in the form of a representation letter
from management that, among other things, will confmn management's responsibility for the presentation of the
investments of the District in accordance with generally accepted accounting principles.
Richard A. Temnan is the engagement partner and is responsible for supervising the engagement and signing the report or
authorizing another individual to sign it.
Our fees for these services will be $1,500 and is included in the fee quoted in the engagement letter to conduct the June
30, 2018 financial audit of the District dated Janumy 10, 2018. The fee is based on anticipated cooperation your personnel
and the asswnption that unexpected circumstances will not be encountered during the engagement. If significant
additional time is necessary, we will discuss it with you and arrive at a new fee before we incur the additional costs.
We appreciate the oppmtunity to assist you and believe this letter accurately summarizes the significant terms of our
engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described
in this letter, please sign the enclosed copy and return it to us. If the need for additional services arises, our agreement
with you will need to be revised. It is custommy for us to enumerate these revisions in an addendum to this letter. If
additional specified parties of the report are added, we will require that they acknowledge in writing their responsibility
for the sufficiency of procedures.
RESPONSE:
Very truly yours,
TEAMAN, RAMIREZ & SMITH, INC.
Richard A. Teaman
Certified Public Accountant
This letter correctly sets forth the understanding ofthe Otay Water District.
By: ___________________ _
Title: _____________________ _
Date: ______________________ _
Otay Water District Agreed-Upon Procedures
Investments
1. Obtain a copy of the District’s investment policy and determine that it is in effect for the fiscal
year ended June 30, 2018.
2. Select 4 investments held at year end and determine if they are allowable investments under
the District’s Investment Policy.
3. For the four investments selected in #2 above, determine if they are held by a third party
custodian designated by the District.
4. Confirm the part or original investment amount and market value of the four investments
selected above with the custodian or issuer of the investments.
5. Select two investment earnings transactions that took place during the year and recomputed the
earnings to determine if they proper amount was received.
6. Trace amounts received for transactions selected at #5 above into the District’s bank accounts.
7. Select five investment transactions (buy, sell, trade, or maturity) occurring during the year
under review and determine that the transactions are permissible under the District’s
investment policy.
8. Review supporting documentation for the five investments selected at #7 above to determine if
the transactions were appropriately recorded in the District’s general ledger.
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: February 7, 2018
SUBMITTED BY:
Tenille M. Otero,
Communications Officer
PROJECT: Various DIV. NO. ALL
APPROVED BY:
Mark Watton, General Manager
SUBJECT: 2018 Legislative Program Guidelines and Priorities
GENERAL MANAGER’S RECOMMENDATION:
That the Board of Directors adopt the 2018 Otay Water District
Legislative Program Guidelines and Priorities.
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
To provide direction to staff and the Otay Water District’s
legislative advocates in the formulation of the District’s response
to legislative initiatives on issues affecting the District during
the 2018 legislative session.
To present to the Board of Directors the 2018 Legislative Program
Priorities, which staff and legislative advocates will proactively
monitor and/or take action on during the 2018 legislative session and
throughout the year.
ANALYSIS:
Otay Water District maintains a set of legislative policy guidelines
to direct staff and its legislative advocates on issues important to
the District. The legislative guidelines are updated annually with
the proposed updates presented to the District’s Board of Directors
for review, comment, and adoption. The attached 2018 Legislative
2
Program represents policy guidelines on legislation for the Board’s
consideration.
Each legislative session, representatives to the California
Legislature sponsor 2,000 or more bills or significant resolutions.
While many bills fail to make it out of their house of origin, many
others go on to be signed by the governor and become law. These new
laws can affect special districts in substantive ways. The same is
true with each session of the House of Representatives and the U.S.
Senate.
The 2018 Legislative Program establishes guidelines and policy
direction that can be used by staff when monitoring legislative
activity to facilitate actions that can be taken quickly in response
to proposed bills. The guidelines provide a useful framework for
staff when evaluating the potential impact of state or federal
legislation on the District. This is particularly helpful when a
timely response is necessary to address a last minute amendment to
legislation and should calls or letters of support or opposition be
needed.
Legislation that does not meet the guidelines as set forth or that
has potentially complicated or varied implications, will not be acted
upon by staff or District’s legislative advocates, and will instead
be presented to the Board directly for guidance in advance of any
position being taken.
The San Diego County Water Authority has its own set of legislative
guidelines that is comprehensive program at a wholesale and regional
level. District staff has evaluated and selected policies and issues
from the Water Authority’s guidelines that may have a direct impact
on the District. These policies and issues have been incorporated
into the District’s guidelines. Although the District is a retail
agency and is focused on its local service area, if there are issues
or polices contained in the Water Authority’s Legislative Policy
Guidelines that could benefit or impact the District, the General
Manager, District staff, and the District’s legislative advocates may
act on those issues respectively.
The 2018 Legislative Guidelines presents staff’s initial
recommendations for the Board’s review, and seeks the Board’s
feedback for any additional modifications. Staff will then
incorporate the Board’s recommendations into the final document.
In general, the guidelines look to protect the District’s interest in
a reliable, diverse, safe, and affordable water supply. Moreover,
they seek to maintain local control over special district actions to
3
protect the Board’s discretion and ratepayers’ interests, and
maintain the ability to effectively and efficiently manage District
operations. In addition they express the District’s ongoing support
for water-use efficiency, recycled water, seawater desalination,
capital improvement project development, organization-wide safety and
security, binational cooperation, and funding, including the
equitable distribution of water bond proceeds. These guidelines also
demonstrate the District’s strong and collaborative support and
efforts to advocate against a “one-size-fits-all” approach to
emergency drought declarations and regulations.
In addition, staff is presenting the District’s “top 10” or so
priorities for the year (Attachment D). This list highlights specific
legislation or issues the District is proactively reviewing or taking
action on during the 2018 legislative session.
Unfortunately, it is too early in the legislative session to know the
specifics on the bills as the deadline for bill introduction is
February 16, 2018. Typically, lobbyists and legislative staff wait
until the last couple of days leading up to the deadline, and then
hundreds of bills will be introduced. For now, District staff nor
does its legislative consultant know what the priority bills of
interest will be, but will assess them as they are introduced and
monitor those bills/issues that may affect the District throughout
the year. Attached you will find a list of priority issues that
District staff and/or the Water Authority is currently monitoring
and/or may take or has already taken a position on. The bills/issues
highlighted in the attachment consist of mostly the two-year bills
that are currently on the agenda from the 2017 legislative session.
Staff will report to the Board as necessary throughout the year to
provide an update on legislative issues affecting the District and if
the District is taking a position on specific issues.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
None.
LEGAL IMPACT:
None
Attachments: Attachment A – Committee Action
Attachment B – 2018 Otay Water District Legislative
Program
4
Attachment C - 2018 Otay Water District Legislative
Program Redlined
Attachment D – 2018 Legislative Priorities
ATTACHMENT A
SUBJECT/PROJECT:
2018 Legislative Program Guidelines and Priorities
COMMITTEE ACTION:
The Public Relations, Legal and Legislative Committee reviewed this
item at a meeting held on January 23, 2018 and the following comments
were made:
Staff is requesting that the board adopt the 2018 Otay Water
District Legislative Program Guidelines and Priorities.
Staff reviewed information in the staff report.
It was discussed that the guidelines are reviewed every year and
updated to ensure they are still pertinent to Otay WD.
Additionally, there may be things that CWA has added, changed or
reworded in their guidelines and staff compares these changes with
the District’s guidelines. Staff noted that the guidelines are not
identical to CWA’s. The District’s guidelines include some items
that specifically pertain to Otay WD.
It was noted that items highlighted in “green” on the strike-thru
copy of the proposed legislative guidelines indicates that the
guideline was moved to a different section within the document.
The Committee discussed the “top 10” or so issues for 2018. It was
indicated that the California Water Fix is still being discussed and
that it would take time to work out the environmental issues. With
regard to the Salton Sea, the District’s position would be based on
the environmental documents for the water transfer. It was
indicated that the mitigation for the transfer and the restoration
of the Salton Sea are two separate issues. CWA has met their
obligations with regard to the water transfer. It is now up to the
State to restore or stabilize the Salton Sea. The goal is for the
State to contain the dust as the Sea recedes.
Staff noted that any unusual or controversial/sensitive items that
are not addressed within the guidelines would be presented to the
board for discussion and to provide direction to staff.
Upon completion of the discussion, the committee supported staff’s
recommendation and presentation to the full board as an action item.
Otay Water District Legislative Program 2018
1 | Page
Effective Date: 02/07/2018
Legislative Policy Guidelines
Purpose
The Otay Water District’s legislative policy guidelines reflect policy positions adopted by the Board
of Directors through 2017. The guidelines provide direction to staff and the legislative advocates
when they evaluate proposed legislation that may affect the District, other local water agencies, or
regional water management and use. Legislation that meets or fails to meet, the principles set forth in
the guidelines may be supported or opposed accordingly. The guidelines permit the General Manager,
District staff, and the District’s legislative advocates to act in a timely fashion between Board
meetings on issues that are clearly within the guidelines.
While the title of this document suggests these policy guidelines are applicable solely to state and
federal legislative issues reviewed by the San Diego County Water Authority, the District and other
state and local water agencies, increasingly state and federal regulatory and administrative bodies are
developing rules, guidelines, white papers, and regulations that can significantly affect the District, its
wholesale supplier, and other local agencies. Otay District staff, including the District’s legislative
team, often utilize these Legislative Policy Guidelines to provide guidance on emerging and active
regulatory and administrative issues.
Legislation that does not meet the principles set forth in the guidelines or that has potentially
complicated or varied implications will not be acted upon by staff or the legislative advocates in
between Board meetings and will instead be presented to the Board directly for guidance in advance
of any position being taken.
The San Diego County Water Authority has its own set of legislative guidelines that is a
comprehensive program at a wholesale and regional level. District staff has evaluated and selected
policies and issues from the Water Authority’s guidelines that may have a direct impact on the
District. These policies and issues have been incorporated into the District’s guidelines. Although the
District is a retail agency and is focused on its local service area, if there are issues or polices
contained in the Water Authority’s Legislative Policy Guidelines and they could benefit or impact the
District, the General Manager, District staff, and the District’s legislative advocates may act on those
issues respectively.
Attachment B
Otay Water District Legislative Program 2018
2 | Page
Table of Contents
The Otay Water Legislative Policy Guidelines for the 2018 Legislative Session includes the
following categories:
A. Bay-Delta…………………………………………………………………... Page 3
B. Binational Issues…………………………………………....……………... Page 5
C. Drought Response………………………………………………………… Page 5
D. Financial Issues…………………………………………………………… Page 6
i. Fees, Taxes, and Charges………………………….......................... Page 6
ii. Funding…………………………………………………………….. Page 7
iii. Rates………………………………………………………………... Page 8
iv. Water Bonds……………………………………………………….. Page 9
E. Governance and Local Autonomy……………………………………….. Page 10
F. Optimization of District Effectiveness……………………...………….... Page 11
G. Recycled Water…………………………………………………………… Page 11
H. Safety, Security and Information Technology……………....................... Page 13
I. Water Service and Facilities……………………………………………… Page 13
J. Water-Use Efficiency……………………………………………………… Page 16
Otay Water District Legislative Program 2018
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A. Bay-Delta Support efforts to:
1. Require the Delta Stewardship Council or DWR to provide periodic analyses of the cost of the
proposed Delta improvements to the Legislature and the public.
2. Provides conveyance and storage facilities that are cost-effective for the San Diego region’s
ratepayers, improve the reliability and quality of the San Diego region’s water supplies, and
protect the Bay-Delta’s ecosystem.
3. Require water agencies and other entities that contract to pay the costs of improvements in the
Delta to obtain take-or-pay contracts with their member agencies to pay the fixed costs of the
improvements.
4. Finalize and evaluate the Bay-Delta Conservation Plan the California Water Fix, or other
conveyance proposals to address Bay-Delta environmental and water quality issues and to
ensure the solution is cost effective.
5. Finalize Bay-Delta planning work and ongoing studies of new water storage facilities, and
support efforts to promote additional surface and underground water storage infrastructure
that are cost effective ensure water availability and quality.
6. Resolve conflicts between urban and rural water users, water management and the
environment in the Bay-Delta.
7. Fast-track design, permits and construction for pilot projects in the Bay-Delta to create
barriers to keep fish away from Bay-Delta water pumps, improve water quality and supply
reliability.
8. Implements a long-term, comprehensive solution for the Bay-Delta that:
i. Achieves the co-equal goals of water supply reliability and environmental
restoration embodied in the 2009 Delta bill package.
ii. Provides deliberative processes that are designed to ensure a meaningful dialogue
with all stakeholders in order to reduce future conflicts and challenges to
implementation of a Bay-Delta solution.
iii. Provides regulatory certainty and predictable supplies to help meet California’s
water needs in the long-term.
iv. Provides a Bay-Delta solution that acknowledges, integrates and supports the
development of water resources at the local level including water use efficiency,
seawater and brackish water desalination, groundwater storage and conjunctive use,
and recycled water including direct and indirect potable reuse.
v. Improves the ability of water-users to divert water from the Delta during wet
periods, when impacts on fish and ecosystem are lower and water quality is higher.
vi. Develops a statewide water transfer market that will improve water management.
vii. Improves coordination of Central Valley Project and State Water Project operations.
viii. Restores the Bay-Delta ecosystem to a point where species listed under the state and
federal Endangered Species Acts are no longer threatened or endangered, taking into
account all factors that have degraded Bay-Delta habitat and wildlife.
ix. Ensures a meaningful dialogue with all stakeholders and that ecosystem restoration
issues are addressed in an open and transparent process.
Otay Water District Legislative Program 2018
4 | Page
x. Provides a Bay-Delta solution and facilities that are cost-effective when compared
with other water supply development options for meeting Southern California’s
water needs.
xi. Identifies the total cost of any Bay-Delta solution before financing and funding
decisions are made, which must include the cost of facilities, mitigation and required
or negotiated ecosystem restoration.
xii. Allocates costs of the Bay-Delta solution to stakeholders in proportion to benefits
they receive.
xiii. Requires a firm commitment and funding stream by all parties to pay for the
proportional benefits they will receive from a Bay-Delta solution, through take-or-
pay contracts or the legal equivalent.
xiv. Conditions financial support on provisions allowing access to any water conveyance
or storage facilities that are included in the Bay-Delta solution.
xv. Uses public funds to support specific projects and actions with identified costs that
protect and restore the environment and provide broad-based public benefits.
xvi. Provides “right-sized” facilities to match firm commitments to pay for the Bay-Delta
solution.
xvii. Provides SWP contractors and their member agencies access to all SWP facilities to
facilitate water transfers.
xviii. Continues state ownership and operation of the SWP as a public resource.
xix. Improves efficiency and transparency of all SWP operations.
9. Provide the State Water Project (SWP) with more flexibility to operate their systems to
maximize water deliveries while avoiding unacceptable impacts to third parties, habitat or the
environment.
10. Focus on statewide priorities, including construction of an approved method of conveyance of
water through or around the Delta that provides water supply reliability to the Delta water
uses.
11. Provides for the state’s share of funding for Bay-Delta conveyance projects.
12. Consider complementary investments in local water supply sources, regional coordination,
and south of Delta storage as part of an overall comprehensive Bay-Delta solution.
13. Protects and safeguards San Diego region’s Preferential Rights on the Metropolitan Water
District Act.
14. Authorize and appropriate the federal share of funding for the long-term Bay-Delta solution.
15. Provide the ongoing state share of funding for the long-term Bay-Delta solution.
16. Provide state funding for aquatic toxicity monitoring in the Bay-Delta. Such legislation should
not place a surcharge on water supply exports nor should it substantively reduce funding for
other measures that protect the environment and public health.
Oppose efforts that:
1. Impose water user fees to fund ecosystem restoration and other public purpose, nonwater-
supply improvements in the Delta that benefit the public at large.
2. Require additional reviews or approvals of Delta conveyance options beyond those provided
by SBX7-1 (2009).
3. Transfer operational control of the State Water Project or any of its facilities to the
Metropolitan Water District of Southern California (MWD), the State Water Contractors, the
Central Valley Project Contractors, the State and Federal Contractors Water Agency, or any
Otay Water District Legislative Program 2018
5 | Page
entity comprised of MWD or other water project contractors, or any other special interest
group.
B. Binational Issues Support efforts to:
1. Promote and finance cross-border infrastructure development such as water pipelines,
desalination plants or water treatment facilities to serve the San Diego/Baja California border
region while protecting local interests.
2. Encourage enhanced cooperation between entities in San Diego and Baja California in
development of supply and infrastructure projects that will benefit the entire border region.
3. Develop and enhance communications and understanding of the interdependence of
communities on both sides of the border with the goal of improved cross-border cooperation.
Oppose efforts that:
1. Would usurp local control over the financing and construction of water supply and
infrastructure projects in the San Diego/Baja California region.
C. Drought Response
Support efforts to:
1. Ensure the District and other local agencies including the Water Authority and San Diego
County water agencies receive the water supply benefits of its investment in local water
supply sources.
2. Allow local agencies to achieve compliance with emergency or non-emergency drought
regulations or objectives through a combination of water conservation measures and
development and implementation of local water supply sources that are not derived from the
Delta.
3. Allow for local agencies to account for all water supplies available during droughts and other
events when calculating the water supply shortage level.
4. Create a process for development and implementation of emergency drought declarations and
regulations that recognizes variations among communities, regions, and counties with respect
to their abilities to withstand the impacts and effects of drought.
5. Recognize variations among communities, regions, and counties with respect to their abilities
to withstand the impacts and effects of droughts, and ensure that any temporary or permanent
statutory or regulatory direction for improving water-use efficiency to meet statutory or
regulatory goals or standards is focused on regional achievement of objectives rather than a
one-size -fits -all approach.
Oppose efforts that:
1. Disincentivize or impede water agencies from making investments to maximize the potential
for recycled water, potable reuse, desalination and other drought-resilient local water supplies.
2. Create a “one-size -fits -all” approach to emergency drought declarations and regulations that
ignores variations among communities, regions, and counties with respect to their ability to
withstand the impacts and effects of drought.
Otay Water District Legislative Program 2018
6 | Page
D. Financial Issues
i. Fees, Taxes, and Charges
ii. Funding
iii. Rates
iv. Water Bonds
i. Fees, Taxes, and Charges
Support efforts to:
1. Require the federal government and State of California to reimburse special districts for
all mandated costs or regulatory actions.
2. Give special districts the discretion to cease performance of unfunded mandates.
3. Provide for fiscal reform to enhance the equity, reliability, and certainty of special district
funding.
4. Provide incentives for local agencies to work cooperatively, share costs or resources.
5. Provide for the stable, equitable and reliable allocation of property taxes.
6. Continue to reform workers compensation.
7. Promote competition in insurance underwriting for public agencies.
8. Produce tangible results, such as water supply reliability or water quality improvement.
9. Require the Metropolitan Water District of Southern California (MWD) to refund or credit
to its member agencies revenues collected from them that result in reserve balances
greater than the maximum reserve levels established pursuant to state legislation. Oppose efforts that:
1. Impose mandated costs or regulatory constraints on local agencies and their customers
without providing subventions to reimburse local agencies for such costs.
2. Pre-empt the Water Authority’s or its member agencies’ ability to impose or change rates,
charges, fees, or assessments.
3. Weaken the protections afforded the Water Authority or its member agencies under
California’s Proposition 1A (November 2, 2004).
4. Reallocate special districts reserves in an effort to balance the state budget.
5. Reallocate special district revenues or reserves to fund infrastructure improvements or
other activities in cities or counties.
6. Establish funding mechanisms that put undue burdens on local agencies or make local
agencies de facto tax collectors for the state.
7. Adversely affect the cost of gas and electricity or reduce an organization’s flexibility to
take advantage of low peak cost periods.
8. Add new reporting criteria, burdensome, unnecessary or costly reporting mandates to
Urban Water Management Plans.
9. Add new mandates to the Department of Water Resources (DWR) to review and approve
Urban Water Management Plans beyond those already addressed in DWR guidelines.
10. Mandate that water agencies include an embedded energy calculation for their water
supply sources in Urban Water Management Plans or any other water resources planning
or master-planning document.
Otay Water District Legislative Program 2018
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11. Weaken existing project retention and withholding provisions that limit the ability of
public agencies to drive contractor performance.
12. Establish change order requirements that place an unreasonable burd en on local
agencies, or raise financial risk associated with public works contracts.
13. Impair the San Diego County Water Authority or its member agencies’ ability to provide
reasonable service at reasonable costs to member agencies or to charge all member
agencies the same rate for each class of service consistent with cost-of-service
requirements of the law.
14. Impair the local water agencies’ ability to maintain reasonable reserve funds and obtain
and retain reasonable rates of return on its reserve accounts.
15. Mandate a specific rate structure for retail water agencies.
16. Impose a water user fee on water agencies or water users that does not provide a
commensurate and directly linked benefit in the local area or region from which the water
user fee is collected.
17. Impose a water user fee for statewide projects or programs, for which the projects or
programs are not clearly defined, the beneficiaries identified, and reasonable costs
identified.
18. Impose a water user fee in order to create a state fund that can be used to finance
undefined future projects and programs.
19. Allow the state to retain more than five percent of water user fees for administrative costs.
20. Do not restrict the use of water user fees to only the specific purposes for which they are
imposed, without any possibility of diversion to meet other fiscal needs of the state.
21. Impose a “public goods charge” or “water tax” on public water agencies or their
ratepayers.
22. Impose a fee on water users to repay the principal and interest on a statewide general
obligation bond.
23. Establish regulatory or permit fees that lack a nexus to the costs of oversight.
24. Establish a broad-.based user fee that does not support a specific program activity; any fee
must provide a clear nexus to the benefit the fee would provide.
ii. Funding
Support efforts to:
1. Require the federal and state governments to provide subvention to reimburse local
governments for all mandated costs or regulatory actions.
2. Provide the Water Authority and its member agencies with additional forms of cost-
effective financing for public facilities.
3. Revitalize the Title XVI federal funding program by converting new authorizations to a
competitive grant program with congressional oversight while protecting existing Title
XVI authorizations for the San Diego region.
4. Provide the Water Authority and its member agencies with grant funding for public
facilities.
5. Authorize financing of water quality, water security, and water supply infrastructure
improvement programs.
Otay Water District Legislative Program 2018
8 | Page
6. Establish spending caps on State of California overhead when administering voter
approved grant and disbursement programs.
7. Require disbursement decisions in a manner appropriate to the service in question.
8. Encourage funding infrastructure programs that are currently in place and that have been
proven effective.
9. Provide financial incentives for energy projects that increase reliability, diversity, and
reduce greenhouse gasses.
10. Continue energy rate incentives for the utilization of electricity during low-peak periods.
11. Provide loan or grant programs that encourage water conservation for water users who are
least able to pay for capital projects.
12. Provide for population-based distribution of funds to ensure adequate distribution of grant
funding throughout the state.
13. Provide for the use of state grant funds for binational projects where the projects benefit
water supply or water quality in the San Diego region.
14. Improve and streamline the state’s reimbursement process to ensure timely remittance of
IRWM funds.
15. Promote the ability of the Regional Water Management Group to more directly administer
state grant funds specifically identified for IRWM Programs.
16. Require the state to rely on the local process for selection and ranking of projects included
in an approved IRWM plan.
Oppose efforts that:
1. Impose additional administrative requirements and/or restricts the Water Authority’s or its
member agencies’ ability to finance public facilities through the issuance of long-term
debt.
2. Interfere with the responsibility of a region, operating under an Integrated Regional Water
Management Plan, for setting priorities and generating projects to be paid from any
IRWM accounts and grants.
3. Interfere with the control exercised by the San Diego funding subregion over the use and
expenditure of any water-user fee revenues that may be dedicated to the region.
4. Establish IRWM funding criteria that limits local discretion in project selection.
iii. Rates
Support efforts to:
1. Maintain the authority of water agencies to establish water rates locally, consistent with
cost-of-service requirements of the law.
2. Maximize the ability of water agencies to design rate structures to meet local water supply
goals and that conform to cost-of-service requirements of the law.
Oppose efforts that:
1. Impair the Water Authority’s or its member agencies’ ability to provide reasonable service
at reasonable costs to member agencies or to charge all member agencies the same rate for
each class of service consistent with cost-of-service requirements of the law.
2. Undermine or weaken cost-of-service rate-making requirements in existing law.
Otay Water District Legislative Program 2018
9 | Page
3. Impair the District’s ability to maintain reasonable reserve funds and obtain and retain
reasonable rates of return on its reserve accounts.
4. Mandate a specific rate structure for retail water agencies.
5. Prescribe mandatory conservation-based rate structures that override the authority of the
boards of directors of local water agencies to set rate structures according to the specific
needs of the water agencies.
6. Usurp special district funds, reserves, or other state actions that force special districts to
raise rates, fees or charges
iv. Water Bonds
Support efforts to:
1. Ensure an equitable share of funding to San Diego County, with major funding categories
being divided by county and funded on a per-capita basis to ensure bond proceeds are
distributed throughout the state in proportion to taxpayers’ payments on the bonds.
2. Ensure a focus on statewide priorities, including restoration of fish and wildlife habitat,
construction of an improved method of conveyance of water through or around the Delta
that provides water supply reliability to Delta water users, promotion of greater regional
and local self-sufficiency, surface storage, and promotion of water use efficiency.
3. Ensure funding from various propositions for local and regional water-related projects.
4. Include within IRWM funding money that a region may use over time to develop and
refine its plan and to develop institutional structures necessary to establish and implement
the plan.
5. Ensure primary consideration is given to funding priorities established by local and
regional entities through their IRWM planning process.
6. Ensure that the application process for funding is not unnecessarily burdensome and
costly, with an emphasis on streamlining the process.
7. Limit state overhead to no more than five percent of bond funding amounts.
8. Place as much emphasis and provides at least as much funding for surface storage as for
groundwater storage.
9. Define the “San Diego sub-region” and “San Diego county watersheds” as “those portions
of the westward-flowing watershed of the South Coast hydrologic region situated within
the boundaries of San Diego County.”
10. Fund emergency and carryover storage projects including those in San Diego County.
11. Consolidate administration of all voter-approved water-related bond funding in one place,
preserves existing expertise within the state bureaucracy to manage bond-funding
processes, and provide consistent application and evaluation of bond funding applications.
12. Ensure funding for water infrastructure projects help to resolve conflicts in the state’s
water system and provide long-term benefits to statewide issues including water supply,
reliability, water quality, and ecosystem restoration.
13. Provide and expedite the state’s share of funding for projects that advance the
achievement of the co-equal goals of water supply reliability and Delta ecosystem
restoration.
Oppose efforts that:
1. Changes or do not provide an equitable share of funding to San Diego County based on
the San Diego County taxpayers’ proportional contribution to repayment of the bonds.
Otay Water District Legislative Program 2018
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2. Do not provide funding for infrastructure that resolves statewide or regional conflicts of
water supplies.
3. Do not provide funding that result in net increases in real water supply and water supply
reliability.
4. Commit a significant portion of bond funding to projects that do not result in net increases
in real water supply or water supply reliability.
E. Governance/Local Autonomy Support efforts to:
1. Expand local autonomy in governing special district affairs.
2. Promote comprehensive long-range planning.
3. Assist local agencies in the logical and efficient extension of services and facilities to promote
efficiency and avoid duplication of services.
4. Streamline the Municipal Service Review Process or set limits on how long services reviews
can take or cost.
5. Establish clear and reasonable guidelines for appropriate community sponsorship activities.
6. Reaffirm the existing “all-in” financial structure, or protect the San Diego County Water
Authority voting structure based on population.
7. Promote measures that increase broader community and water industry
representation/appointments on State decision making bodies
Oppose efforts that:
1. Assume the state legislature is better able to make local decisions that affect special district
governance.
2. Create one-size-fits-all approaches to special district reform.
3. Unfairly target one group of local elected officials.
4. Usurp local control from special districts regarding decisions involving local special district
finance, operations or governance.
5. Limit or diminish the power of the board of directors’ ability to govern the District’s affairs.
6. Modify the committee or board voting structure unless the board of directors has expressly
authorized such changes.
7. Create unfunded local government mandates.
8. Create costly, unnecessary or duplicative oversight roles for the state government of special
district affairs.
9. Create new oversight roles or responsibility for monitoring special district affairs.
10. Change the San Diego County Water Authority Act regarding voting structure, unless it is
based on population.
11. Shift the liability to the public entity and relieve private entities of reasonable due diligence in
their review of plans and specifications for errors, omissions and other issues.
12. Place a significant and unreasonable burden on public agencies, resulting in increased cost for
public works construction or their operation.
13. Impair the ability of water districts to acquire property or property interests required for
essential capital improvement projects.
14. Increase the cost of property and right-of-way acquisition, or restricts the use of right-of-
ways.
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15. Work to silence the voices of special districts and other local government associations on
statewide ballot measures impacting local government policies and practices, including
actions that could prohibit special districts and associations from advocating for positions on
ballot measures by severely restricting the private resources used to fund those activities.
16. Prescribe mandatory conservation-based or other rate structures that override the authority of
the board of directors to set its rate structure.
17. Circumvent the legislative committee process, such as the use of budget trailer bills, to
advance policy issues including impacting special districts without full disclosure,
transparency, or public involvement.
F. Optimize District Effectiveness
Support efforts to:
1. Give utilities the ability to avoid critical peak energy pricing or negotiate energy contracts that
save ratepayers money.
2. Develop reasonable Air Pollution Control District engine permitting requirements.
3. Reimburse or reduce local government mandates.
4. Allow public agencies to continue offering defined benefit plans.
5. Result in predictable costs and benefits for employees and taxpayers.
6. Eliminate abuses.
7. Retain local control of pension systems.
8. Be constitutional, federally legal and technically possible.
Oppose efforts that:
1. Restrict the use of, or reallocate, district property tax revenues to the detriment of special
districts.
2. Create unrealistic ergonomic protocol.
3. Micromanage special district operations.
4. Balance the state budget by allowing regulatory agencies to increase permitting fees.
5. Tax dependent benefits.
6. Require new reporting criteria on energy intensity involved in water supply.
G. Recycled Water
Support efforts to:
1. Reduce restrictions on recycled water usage or promote consistent regulation of recycled
water projects to reduce impediments to the increased use of recycled water.
2. Reduce restrictions on injecting recycled water into basins where there is no direct potable
use.
3. Provide financial incentives for recharge of groundwater aquifers using recycled water.
4. Make recycled water regulations clear, consolidated, and understandable to expedite related
project permitting.
5. Promote recycled water as a sustainable supplemental source of water.
6. Allow the safe use of recycled water.
7. Facilitate development of technology aimed at improving water recycling.
8. Increasing funding for water recycling projects.
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9. Support continued funding of the Title XVI Water Reclamation and Reuse Program including
Water Reclamation and Reuse Projects, the WaterSMART Program, and the Desalination and
Water Purification Research Program.
10. Increase awareness of the ways recycled water can help address the region’s water supply
challenges.
11. Create federal and state incentives to promote recycled water use and production.
12. Establish federal tax incentives to support U.S. companies in the development of new water
technologies that can lower productions costs, address by products such as concentrates, and
enhance public acceptance of recycled water.
13. Establish a comprehensive national research and development, and technology demonstration,
program to advance the public and scientific understanding of water recycling technologies to
encourage reuse as an alternative source of water supply.
14. Provide incentives for local agencies to work cooperatively, share costs or resources to
promote or expand the use of recycled water.
15. Further refine emergency regulations to reward local suppliers that have invested in using
recycled water for landscape irrigation to maintain an incentive to continue expanding areas
served by recycled water.
16. Encourage the use of recycled water in commercial, industrial, institutional, and residential
settings.
17. Recognizes and supports the development of potable reuse as a critical new supply.
18. Define purified recycled water as a source of water supply and not as waste.
19. Mandate the reduction of wastewater discharges to the ocean absent inclusion of funding to
offset the significant costs of implementation.
20. Authorize local governmental agencies to regulate the discharge of contaminants to the sewer
collection system that may adversely affect water recycling and reuse.
21. Authorize and facilitate expanded use of local water resources including water recycling,
potable reuse, graywater, and rainwater harvesting (e.g., cisterns and rain barrels), and
brackish groundwater.
22. Streamline regulatory processes and requirements to encourage and support the development
of potable reuse and non-potable reuse as a municipal water supply.
23. Recognize the entire interconnected urban water cycle, as well as public health and safety,
must be taken into consideration in long-term water use efficiency policies, particularly
including the unintended consequences of declining flows on water, wastewater, potable reuse
and recycled water systems.
Oppose efforts that:
1. Restrict use of recycled water for groundwater recharge.
2. Establish new water or recycled water fees solely to recover State costs without also
providing some benefit.
3. Limit the ability of local governmental agencies to regulate the discharge of contaminants to
the sewer collection system that may adversely affect water recycling and reuse.
4. Establish unreasonable regulatory requirements or fees to the safe use of recycled water,
which may unreasonably impede or create a disincentive to its further development.
5. Mandate the reduction of wastewater discharges to the ocean absent inclusion of funding to
offset the significant costs of implementation.
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H. Safety, Security and Information Technology Support efforts to:
1. Provide funding for information security upgrades to include integrated alarms, access/egress,
and surveillance technology.
2. Provide incentives for utilities and other local agencies to work cooperatively, share costs or
resources.
3. Provide funding for communication enhancements, wireless communications, GIS or other
technological enhancements.
4. Encourage or promote compatible software systems.
5. Fund infrastructure and facility security improvements that include facility roadway access,
remote gate access and physical security upgrades.
6. Protect state, local and regional drinking water systems from terrorist attack or deliberate acts
of destruction, contamination or degradation.
7. Provide funds to support training or joint training exercises to include contingency funding for
emergencies and emergency preparedness.
8. Equitably allocate security funding based on need, threats and/or population.
9. Encourage or promote compatible communication systems.
10. Encourage and promote funding of Department of Homeland Security Risk Mitigation
programs.
11. Recognizes water agencies as emergency responders to damage and challenges caused by
wildfires, earthquakes, and other natural disasters, as well as terrorist and other criminal
activities that threaten water operations, facilities and supplies.
12. Provide state grant or other funding opportunities to support seismic risk assessment and
mitigation plans, or to mitigate vulnerabilities.
13. Provide funding for projects that enhance security against terrorist acts or other criminal
threats to water operation, services, facilities, or supplies.
Oppose efforts that:
1. Create unnecessary, costly, or duplicative security or safety mandates.
2. Require expanded water system descriptions or additional public disclosure of public water
systems details for large water suppliers in Urban Water Management Planning documents,
potentially compromising public water systems and creating a conflict with the Department of
Homeland Security’s recommendation to avoid reference to water system details in plans
available to the general public.
I. Water Services and Facilities
Support efforts to:
1. Provide funding to implement actions identified in the California Water Action Plan to lay a
solid fiscal foundation for implementing near-term actions, including funding for water
efficiency projects, wetland and watershed restoration, groundwater programs, conservation,
flood control, and integrated water management and result in a reliable supply of high-quality
water for the San Diego region.
2. Provide financial support to projects designed to mitigate the potential negative impacts of
Global Climate Change on water supply reliability.
3. Promote the coordination and integration of local, state and federal climate change policies
and practices to the greatest extent feasible.
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4. Fund or otherwise facilitate ongoing implementation of the Quantification Settlement
Agreement.
5. Provide reliable water supplies to meet California’s short and long-term needs.
6. Promote desalination pilot studies and projects.
7. Encourage feasibility studies of water resource initiatives.
8. Increase funding for infrastructure and grant programs for construction, modernization or
expansion of water, wastewater treatment, reclamation facilities and sewer systems including
water recycling, groundwater recovery and recharge, surface water development projects and
seawater desalination.
9. Fund enhancements to water treatment, recycling, and other facilities to meet increased
regulations.
10. Mandate uniform or similar regulations and procedures by state agencies in the processing
and administering of grants and programs.
11. Streamline grant application procedures.
12. Reduce regulations and other impediments for willing sellers and buyers to engage in water
transfer agreements.
13. Promote or assist voluntary water transfers between willing buyers and willing sellers and
move those transactions through without delay.
14. Streamline the permitting and approval process for implementing water transfers.
15. Establish reasonable statewide approaches to sewer reporting standards.
16. Generate greater efficiencies, better coordinate program delivery, and eliminate duplication in
programs for source water protection without lessening the focus on public health of the
state’s Drinking Water Program.
17. Target efforts to fix specific issues with water supplies within the state’s Drinking Water
Program.
18. Establish federal tax incentives to support U.S. companies in the development of new
desalination technologies that can lower productions costs, eliminate or reduce impingement
or entrainment, reduce energy use, and enhance public acceptance of desalinated water.
19. Establish a comprehensive national research and development, and technology demonstration
program to advance the scientific understanding of desalination to expand its use as an
alternative source of water supply.
20. Require the State Water Resources Control Board to exercise its authority, ensure robust
funding, and implement the Salton Sea mitigation and restoration plan, meet state obligations,
and work with QSA stakeholders to find workable solutions to ensure the continuation of IID
water transfers.
21. Support solutions to water supply issues that address common challenges, provide a
comprehensive approach that is fair to all users, balance the needs of urban and rural
communities, and take into consideration the interests of all stakeholders as well as the impact
to the environment.
22. Further refine emergency drought regulations to eliminate a cap on credits and adjustments so
as not to impose undue burden, financial or otherwise, on communities that have already
invested in water conservation, development of new water sources, storage, or loss
prevention.
23. Provide funding for water infrastructure development, infrastructure security, and
rehabilitation and replacement projects that benefit ratepayers.
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24. Provide funding for habitat preservation programs that address impacts resulting from
construction or operation of water system facilities.
25. Provide funding for projects that enhance security against terrorist acts or other criminal
threats to water operation, services, facilities, or supplies.
26. Provide incentives that encourage contractors to recycle or reduce waste associated with
construction of water facilities.
27. Improve the local agencies’ efforts to maintain and protect its property, rights of way,
easements, pipelines, and related facilities and minimizes liability to local agencies and the
District.
28. Protect the local agencies’ properties from restrictions when surrounding properties are
incorporated into preservation areas.
Oppose efforts that:
1. Make urban water supplies less reliable or substantially increase the cost of imported water
without also improving the reliability and/or quality of the water.
2. Create unrealistic or costly water testing or reporting protocol.
3. Disproportionately apportion the cost of water.
4. Create undo hurtles for seawater desalination projects.
5. Create unreasonable or confusing sewer reporting standards.
6. Create administrative or other barriers to sales between willing buyers and willing sellers that
delay water transfers.
7. Create a broad-based user fee that does not support a specific local program activity or
benefit; any fee must provide a clear nexus to the benefit local ratepayers or local water
supplies from the establishment that charge or fee would provide.
8. Create unrealistic or costly to obtain water quality standards for potable water, recycled water
or storm water runoff.
9. Change the focus of the state’s Drinking Water Program or weaken the parts of the program
that work well.
10. Lessen the focus on public health of the state’s Drinking Water Program.
11. Create one-size-fit-all approaches to emergency drought regulations that ignore variations
among communities, regions, and counties with respect to their ability to withstand the impact
and effects of drought.
12. Impose undue burden, financial or otherwise, on communities that have already invested in
water conservation, development of new water sources, storage, or loss prevention.
13. Impose additional mitigation costs or obligations for the Salton Sea on the non-state parties to
the Quantification Settlement Agreement.
14. Impairs local agencies’ ability to provide and operate the necessary facilities for a safe,
reliable and operational flexible water system.
15. Limits local agencies’ sole jurisdiction over planning, design, routing, approval, construction,
operation, or maintenance of water facilities.
16. Restricts local agencies’ ability to respond swiftly and decisively to an emergency that
threatens to disrupt water deliveries or restricts the draining of pipelines or other facilities in
emergencies for repairs or preventive maintenance.
17. Authorizes state and federal wildlife agencies to control, prevent, or eradicate invasive species
in a way that excessively interferes with the operations of water supplies.
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18. Prohibit or in any way limit the ability of local agencies from making full beneficial use of
any water, wastewater, or recycling facility and resource investments.
19. Impair the local agencies’ efforts to acquire property or property interests required for
essential capital improvement projects or acquisition of property to meet pipeline water drain-
down needs for existing facilities.
20. Increase the cost of property and right of way acquisition.
21. Restrict the local agencies’ use of public rights of way or increases the cost of using public
rights of way.
22. Restrict the transfer of property acquired for purposes of environmental mitigation or
environmental mitigation credits to other public or private entities for long-term management.
J. Water-Use Efficiency
Support efforts to:
1. Provide funding for water-use efficiency and water conservation programs including water-
efficient devices, practices and demonstration projects and studies.
2. Encourage the installation of water-efficient fixtures in new and existing buildings.
3. Promote the environmental benefits of water-use efficiency and water conservation.
4. Enhance efforts to promote water-use efficiency awareness.
5. Offer incentives for landscape water-efficient devices including, but not limited to ET
controllers and soil moisture sensors.
6. Develop landscape retrofit incentive programs and/or irrigation retrofit incentive programs.
7. Permit or require local agencies to adopt ordinances that require or promote water-efficient
landscapes for commercial and residential developments.
8. Create tax incentives for citizens or developers who install water-efficient landscapes.
9. Create tax incentives for citizens who purchase high-efficiency clothes washers, dual-flush
and high-efficiency toilets and irrigation controllers above the state standards.
10. Expand community-based water-use efficiency and education programs.
11. Develop incentives for developers and existing customers to install water-efficient landscape
in existing developments or new construction.
12. Encourage large state users to save water by implementing water-efficient technologies in all
facilities both new and retrofit.
13. Encourage large state water users to save water outdoors.
14. Educate all Californians on the importance of water, and the need to conserve, manage, and
plan for the future needs.
15. Encourage technological research targeted to more efficient water use.
16. Give local agencies maximum discretion in selecting water-use efficiency and conservation
programs that work for their customers and the communities they serve.
17. Require the Department of Water Resources to implement a uniform statewide turf rebate
subsidy or incentive program.
18. Restrict Property Owners Associations from forbidding the use of California native plants,
other low water use plants, mulch, artificial turf, or semi-permeable materials in well-
maintained landscapes.
19. Provides for federal tax-exempt status for water-use efficiency rebates, consistent with
income tax treatment at the state level.
20. Encourage the use of graywater where it complies with local guidelines and regulations and is
cost-effective.
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21. Provide incentives, funding, and assistance to water agencies so that they can meet the water
demand management measure requirements in the Urban Water Management Planning Act.
22. Provide incentives, funding, and other assistance to facilitate water-use efficiency
partnerships with the energy efficiency sector.
23. Recognize local control in determining water use efficiency criteria, such as impact of
recycled water salinity on irrigation use and efficiency for the application of non-potable
recycled water.
24. Encourage reasonable tracking of water use and improved efficiency in the Commercial,
Industrial, and Institutional (CII) sector.
Oppose efforts that:
1. Weaken federal or state water-efficiency standards.
2. Introduce additional analytical and reporting requirements that are time-consuming for local
agencies to perform and result in additional costs to consumers, yet yield no water savings.
3. Permit Property Owners Associations to restrict low water use plants, mulch, artificial turf, or
semi-permeable materials in landscaping.
4. Repeal cost-effective efficiency standards for water-using devices.
5. Repeal cost-effective efficiency standards for water-using devices.
6. Create stranded assets by establishing long-term demand management water-use efficiency
and water supply requirements that are inconsistent with the Urban Water Management
Planning Act.
7. Prescribe statewide mandatory urban and agricultural water-use efficiency practices,
including, but not limited to, methods, measures, programs, budget allocation, and designation
of staff dedicated to water conservation programs, that override the authority of the boards of
directors of local water agencies to adopt management practices that are most appropriate for
the specific needs of their water agencies.
8. Mandate regulation of the CII Sector in a manner that is discriminatory, or sets unachievable
Best Management Practices or compliance targets, or would otherwise impair economic
activity or the viability of the CII sector.
9. Mandate that water agencies include an embedded energy calculation for their water supply
sources in the Urban Water Management Plan or any other water resource planning or master
planning document.
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Effective Date: 02/0107/20178
Legislative Policy Guidelines
Purpose
The Otay Water District’s legislative policy guidelines reflect policy positions adopted by the Board
of Directors through 2017. The guidelines provide direction to staff and the legislative advocates
when they evaluate proposed legislation that may affect the District, other local water agencies, or
regional water management and use. Legislation that meets or fails to meet, the principles set forth in
the guidelines may be supported or opposed accordingly. The guidelines permit the general manager,
District staff, and the District’s legislative advocates to act in a timely fashion between Board
meetings on issues that are clearly within the guidelines.
While the title of this document suggests these policy guidelines are applicable solely to state and
federal legislative issues reviewed by the San Diego County Water Authority, the District and other
state and local water agencies, increasingly state and federal regulatory and administrative bodies are
developing rules, guidelines, white papers, and regulations that can significantly affect the District, its
who wholesale supplier and other local agencies. Otay District staff, including the District’s
legislative team, often utilize these Legislative Policy Guidelines to provide guidance on emerging
and active regulatory and administrative issues.
Legislation that does not meet the principles set forth in the guidelines or that has potentially
complicated or varied implications will not be acted upon by staff or the legislative advocates in
between Board meetings and will instead be presented to the Board directly for guidance in advance
of any position being taken.
The San Diego County Water Authority has its own set of legislative guidelines that is
comprehensive program at a wholesale and regional level. District staff has evaluated and selected
policies and issues from the Water Authority’s guidelines that may have a direct impact on the
District. These policies and issues have been incorporated into the District’s guidelines. Although the
District is a retail agency and is focused on its local service area, if there are issues or polices
contained in the Water Authority’s Legislative Policy Guidelines and they could benefit or impact the
District, the General Manager, District staff, and the District’s legislative advocates may act on those
issues respectively.
Attachment C
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Table of Contents
The Otay Water Legislative Policy Guidelines for the 20178 Legislative Session includes the
following categories:
A. Bay-Delta Page X
B. Binational Issues Page X
C. Drought Response Page X
D. Financial Issues Page X
i. Fees, Taxes, and Charges Page X
ii. Funding Page X
iii. Rates Page X
iv. Water Bonds Page X
E. Governance and Local Autonomy Page X
F. Optimization of District Effectiveness Page X
G. Recycled Water Page X
H. Safety, Security and Information Technology Page X
I. Water Service and Facilities Page X
A.J. Water-Use Efficiency Page X
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A. Sacramento-San Joaquin Bay Delta (Bay-Delta)
Support efforts to:
1. Require the Delta Stewardship Council or DWR to provide periodic analyses of the cost of the
proposed Delta improvements to the Legislature and the public.
2. Provides conveyance and storage facilities that are cost-effective for the San Diego region’s
ratepayers, improve the reliability and quality of the San Diego region’s water supplies, and
protect the Bay-Delta’s ecosystem.
3. Require water agencies and other entities that contract to pay the costs of improvements in the
Delta to obtain take-or-pay contracts with their member agencies to pay the fixed costs of the
improvements.
4. Finalize and implement evaluate the Bay-Delta Conservation Plan the California Water Fix,
or other conveyance proposals to address Bay-Delta environmental and water quality issues
and to ensure the solution is cost effective.
5. Finalize Bay-Delta planning work and ongoing studies of new water storage facilities, and
support efforts to promote additional surface and underground water storage infrastructure that
are cost effective ensure water availability and quality.
6. Resolve conflicts between urban and rural water users, water management and the environment
in the Bay-Delta.
Provide ongoing federal and state funding for the Bay-Delta, and those, which focus attention to
Bay-Delta financing, affordability, commitments to pay, and the demand for Bay-Delta water.
Equitably allocate costs of the Bay-Delta solution to all those benefiting from improvements in
proportion to the benefits they receive.
9. Fast-track design, permits and construction for pilot projects in the Bay-Delta to create
barriers to keep fish away from Bay-Delta water pumps, improve water quality and supply
reliability.
10. Implements a long-term, comprehensive solution for the Bay-Delta that:
i. Achieves the co-equal goals of water supply reliability and environmental restoration
embodied in the 2009 Delta bill package.
ii. Provides deliberative processes that are designed to ensure a meaningful dialogue with
all stakeholders in order to reduce future conflicts and challenges to implementation of
a Bay-Delta solution.
iii. Provides regulatory certainty and predictable supplies to help meet California’s water
needs in the long-term.
iv. Provides a Bay-Delta solution that acknowledges, integrates and supports the
development of water resources at the local level including water use efficiency,
seawater and brackish water desalination, groundwater storage and conjunctive use,
and recycled water including direct and indirect potable reuse.
v. Improves the ability of water-users to divert water from the Delta during wet periods,
when impacts on fish and ecosystem are lower and water quality is higher.
vi. Develops a statewide water transfer market that will improve water management.
vii. Improves coordination of Central Valley Project and State Water Project operations.
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viii. Restores the Bay-Delta ecosystem to a point where species listed under the state and
federal Endangered Species Acts are no longer threatened or endangered, taking into
account all factors that have degraded Bay-Delta habitat and wildlife.
ix. Ensures a meaningful dialogue with all stakeholders and that ecosystem restoration
issues are addressed in an open and transparent process.
x. Provides a Bay-Delta solution and facilities that are cost-effective when compared
with other water supply development options for meeting Southern California’s water
needs.
xi. Identifies the total cost of any Bay-Delta solution before financing and funding
decisions are made, which must include the cost of facilities, mitigation and required
or negotiated ecosystem restoration.
xii. Allocates costs of the Bay-Delta solution to stakeholders in proportion to benefits they
receive.
xiii. Requires a firm commitment and funding stream by all parties to pay for the
proportional benefits they will receive from a Bay-Delta solution, through take-or-pay
contracts or the legal equivalent.
xiv. Conditions financial support on provisions allowing access to any water conveyance
or storage facilities that are included in the Bay-Delta solution.
xv. Uses public funds to support specific projects and actions with identified costs that
protect and restore the environment and provide broad-based public benefits.
xvi. Provides “right-sized” facilities to match firm commitments to pay for the Bay-Delta
solution.
xvii. Provides SWP contractors and their member agencies access to all SWP facilities to
facilitate water transfers.
xviii. Continues state ownership and operation of the SWP as a public resource.
xix. Improves efficiency and transparency of all SWP operations.
i. Analyze or support a “Portfolio Approach”, “Around-the-Delta”, “right-sized”, or
other alternatives that feature smaller conveyance facilities as a way to improve water
quality, water transport, and reduce the possibility or impacts of levee failure, lower
costs to water users and the public, reduce the level of environmental impacts, while
potentially facing fewer legal and political challenges.Finalize Bay-Delta planning
work and ongoing studies of new water storage facilities, and support efforts to
promote additional surface and underground water storage infrastructure that are cost
effective ensure water availability and quality.Resolve conflicts between urban and
rural water users, water management and the environment in the Bay-Delta.
ii.i. Provide ongoing federal and state funding for the Bay-Delta, and those, which focus
attention to Bay-Delta financing, affordability, commitments to pay, and the demand
for Bay-Delta water.
iii.i. Equitably allocate costs of the Bay-Delta solution to all those benefiting from
improvements in proportion to the benefits they receive.
iv. Fast-track design, permits and construction for pilot projects in the Bay-Delta to create
barriers to keep fish away from Bay-Delta water pumps, improve water quality and
supply reliability.
10. Provide deliberative processes that are designed to ensure meaningful dialogue with all
stakeholders in an open and transparent process in order to reduce future conflicts and
challenges in implementing a Bay-Delta solution.
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12. Provide a Bay-Delta solution that acknowledges, integrates and supports the development
of water resources at the local level.
Improve the ability of water-users to divert water from the Bay-Delta during wet periods when
impacts to fish and the ecosystem are lower and water quality is higher.
Improve the existing Bay-Delta water conveyance system to increase flexibility and enhance
water supply, water quality, levee stability and environmental protection.
Evaluate long-term threats to the Bay-Delta levees and conveyance system and pursues actions to
reduce risks to the state’s water supply and the environment.
Improve coordination of the Central Valley Project and State Water Project Operations.
Provide a Bay-Delta solution and facilities that are cost-effective when compared with other
water supply development options for meeting Southern California’s water needs.
Identify the total cost or perform appropriate cost studies to estimate consumer financial impact as
well as the expected yield of any Bay-Delta solution before financing and funding decision are made
to determine whether the solution is worth the expense.19.
11. Provide the State Water Project (SWP) with more flexibility to operate their systems to maximize
water deliveries while avoiding unacceptable impacts to third parties, habitat or the environment.
Require a firm commitment and funding stream by all parties to pay for the proportional benefits they
will receive from a Bay-Delta solution through take-or-pay contracts or the legal equivalent, and
identify the impact to the remaining contractors if one or more contractors default or back out.
Provide “right-sized” facilities to match firm commitments to pay for the Bay-Delta solution.
Provide SWP contractors and their member agencies access to all SWP facilities to facilitate
water transfers to improve water management.
Continue state ownership and operation of SWP as a public resource.
Improve efficiency and transparency of all SWP operations.
12. Focus on statewide priorities, including construction of an approved method of conveyance of
water through or around the Delta that provides water supply reliability to the Delta water uses.
Provide a solution that acknowledges, integrates and supports the development of resources at the
local level including water-use efficiency, seawater desalination, groundwater storage and
conjunctive use, and recycled water including direct and indirect potable water reuse.
13. Provides for the state’s share of funding for Bay-Delta conveyance projects.
14. Consider complementary investments in local water supply sources, regional coordination, and
south of Delta storage as part of an overall comprehensive Bay-Delta solution.
15. Protects and safeguards San Diego region’s Preferential Rights on the Metropolitan Water
District Act.
16. Authorize and appropriate the federal share of funding for the long-term Bay-Delta solution.
17. Provide the ongoing state share of funding for the long-term Bay-Delta solution.
18. Provide state funding for aquatic toxicity monitoring in the Bay-Delta. Such legislation should
not place a surcharge on water supply exports nor should it substantively reduce funding for other
measures that protect the environment and public health.
Oppose efforts that:
1. Impose water user fees to fund ecosystem restoration and other public purpose, nonwater-
supply improvements in the Delta that benefit the public at large.
1.2.Require additional reviews or approvals of Delta conveyance options beyond those provided
by SBX7-1 (2009).
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2.3.Transfer operational control of the State Water Project or any of its facilities from the state to
the Metropolitan Water District of Southern California (MWD), the State Water Contractors,
the Central Valley Project Contractors, the State and Federal Water Contractors Water
AgencyAuthority, or to any entity comprised of MWD orand other water project contractors,
or any other special interest group.
B. Bin-National InitiativesIssues
Support efforts to:
1. Promote and finance cross-border infrastructure development such as water pipelines,
desalination plants or water treatment facilities to serve the San Diego/Baja California border
region while protecting local interests.
2. Develop cooperative and collaborative solutions to cross-border issues.
2. Encourage enhanced cooperation between entities in San Diego and Baja California in
development of supply and infrastructure projects that will benefit the entire border region.
3. Develop and enhance communications and understanding of the interdependence of
communities on both sides of the border with the goal of improved cross-border cooperation.
Oppose efforts that:
a. 1. Would Uusurp local control over the financing and construction of water supply and
infrastructure projects in the San Diego/Baja California region.
C. Drought Response
Support efforts to:
1. Ensure the District and other local agencies including the Water Authority and San Diego
County water agencies receive the water supply benefits of its investment in local water
supply sources.
2. Allow local agencies to achieve compliance with emergency or non-emergency drought
regulations or objectives through a combination of water conservation measures and
development and implementation of local water supply sources that are not derived from the
Delta.
3. Allow for local agencies to account for all water supplies available during droughts and other
events when calculating the water supply shortage level.
4. Create a process for development and implementation of emergency drought declarations and
regulations that recognizes variations among communities, regions, and counties with respect
to their abilities to withstand the impacts and effects of drought.
5. Recognize variations among communities, regions, and counties with respect to their abilities
to withstand the impacts and effects of droughts, and ensure that any temporary or permanent
statutory or regulatory direction for improving water-use efficiency to meet statutory or
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regulatory goals or standards is focused on regional achievement of objectives rather than a
one-size -fits -all approach.
Oppose efforts that:
1. Disincentivize or impede water agencies from making investments to maximize the potential
for recycled water, potable reuse, desalination and other drought-resilient local water supplies.
2. Create a “one-size -fits -all” approach to emergency drought declarations and regulations that
ignores variations among communities, regions, and counties with respect to their ability to
withstand the impacts and effects of drought.
C.D. Financial Issues
i. Fees, Taxes, and Charges
ii. Funding
iii. Rates
iv. Water Bonds
i. Fees, Taxes, and Charges
Support efforts to:
1. 1. Require the federal government and State of California to reimburse special districts for all
mandated costs or regulatory actions.
2. 2. Give special districts the discretion to cease performance of unfunded mandates.
3. Provide for fiscal reform to enhance the equity, reliability, and certainty of special district
funding.
4. Provide incentives for local agencies to work cooperatively, share costs or resources.
5. Provide for the stable, equitable and reliable allocation of property taxes.
6. Continue to reform workers compensation.
Authorize financing of water quality, water security, and water supply infrastructure improvement programs.
7. Promote competition in insurance underwriting for public agencies.
Establish spending caps on State of California overhead when administering voter approved
grant and disbursement programs.
Require disbursement decisions in a manner appropriate to the service in question.
Encourage funding infrastructure programs that are currently in place and that have been proven
effective.
8. Produce tangible results, such as water supply reliability or water quality improvement.
Provide financial incentives for energy projects that increase reliability, diversity, and reduce
greenhouse gasses.
Continue energy rate incentives for the utilization of electricity during low-peak periods.
Provide loan or grant programs that encourage water conservation for water users who are least able
to pay for capital projects.
9. Require the Metropolitan Water District of Southern California (MWD) to refund or credit to its
member agencies revenues collected from them that result in reserve balances greater than the
maximum reserve levels established pursuant to state legislation.
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Maintains the authority of water agencies to establish water rates locally, consistent with the cost-of-
service requirement of the law.
1. Maximizes the ability of water agencies to design rate structures to meet local water supply
goals and that conform to the cost-of-service requirements of the law.
2.
Oppose efforts that:
1. Impose new, unfunded state mandateds costs or regulatory constraints on local agencies and
their customers without providing subventions to reimburse local agencies for such costs.
2. Pre-empt the Water Authority’s or its member agencies’ ability to impose or change rates,
charges, fees, or assessments.
3.
Weaken the protections afforded the Water Authority or its member agencies under
California’s Proposition 1A (November 2, 2004). Undermine Proposition 1A - Protection of
Local Government Revenues – and the comprehensive reform approved by voters in 2004.
2.4.Reallocate special district reserves in an effort to balance the state budget.
3.5.Reallocate special district revenues or reserves to fund infrastructure improvements or other
activities in cities or counties.
Usurp special district funds, reserves, or other state actions that force special districts to raise
rates, fees or charges.
4. Complicate or deter conservation-based rate structures.
5.6.Establish funding mechanisms that put undue burdens on local agencies or make local
agencies de facto tax collectors for the state.
6. Complicate compliance with SB 610 and SB 221.
7. Adversely affect the cost of gas and electricity or reduce an organization’s flexibility to take
advantage of low peak cost periods.
8. Add new reporting criteria, burdensome, unnecessary or costly reporting mandates to Urban
Water Management Plans.
9. Add new mandates to the Department of Water Resources (DWR) to review and approve
Urban Water Management Plans beyond those already addressed in DWR guidelines.
10. Mandate that water agencies include an embedded energy calculation for their water supply
sources in Urban Water Management Plans or any other water resources planning or master
planning document.
11. Weaken existing project retention and withholding provisions that limit the ability of public
agencies to drive contractor performance.
12. Establish change order requirements that place an unreasonable burden on local agencies, or
raise financial risk associated with public works contracts.
13. Establish a Public Goods Charge, excise tax for excessive water use, or other permanent tax
or fee on water.
14.13. Impairs the San Diego County Water Authority or its member agencies’ ability to
provide reasonable service at reasonable costs to member agencies or to charge all member
agencies the same rate for each class of service consistent with cost-of-service requirements
of the law.
15. Undermines or weakens cost-of-service rate-making requirements in existing law.
16.14. Impairs the local water agencies’ ability to maintain reasonable reserve funds and
obtain and retain reasonable rates of return on its reserve accounts.
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17.15. Mandates a specific rate structure for retail water agencies.
18.16. Imposes a water user fee on water agencies or water users that does not provide a
commensurate and directly linked benefit in the local area or region from which the water
user fee is collected.
17. Impose a water user fee for statewide projects or programs, for which the projects or
programs are not clearly defined, the beneficiaries identified, and reasonable costs identified.
18. Impose a water user fee in order to create a state fund that can be used to finance undefined
future projects and programs.
19. Allow the state to retain more than five percent of water user fees for administrative costs.
20. Do not restrict the use of water user fees to only the specific purposes for which they are
imposed, without any possibility of diversion to meet other fiscal needs of the state.
21. Impose a “public goods charge” or “water tax” on public water agencies or their ratepayers.
22. Impose a fee on water users to repay the principal and interest on a statewide general
obligation bond.
23. Establish regulatory or permit fees that lack a nexus to the costs of oversight.
19.24. Establish a broad-.based user fee that does not support a specific program activity; any
fee must provide a clear nexus to the benefit the fee would provide.
ii. Funding Support efforts to:
1. Require the federal and state governments to provide subvention to reimburse local
governments for all mandated costs or regulatory actions.
2. Provide the Water Authority and its member agencies with additional forms of cost-
effective financing for public facilities.
3. Revitalize the Title XVI federal funding program by converting new authorizations to a
competitive grant program with congressional oversight while protecting existing Title XVI
authorizations for the San Diego region.
4. Provide the Water Authority and its member agencies with grant funding for public facilities.
5. Authorize financing of water quality, water security, and water supply infrastructure improvement
programs.
6. Establish spending caps on State of California overhead when administering voter approved
grant and disbursement programs.
7. Require disbursement decisions in a manner appropriate to the service in question.
8. Encourage funding infrastructure programs that are currently in place and that have been
proven effective.
9. Provide financial incentives for energy projects that increase reliability, diversity, and reduce
greenhouse gasses.
10. Continue energy rate incentives for the utilization of electricity during low-peak periods.
11. Provide loan or grant programs that encourage water conservation for water users who are
least able to pay for capital projects.
12. Provide for population-based distribution of funds to ensure adequate distribution of grant
funding throughout the state.
13. Provide for the use of state grant funds for binational projects where the projects benefit water
supply or water quality in the San Diego region.
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14. Improve and streamline the state’s reimbursement process to ensure timely remittance of
IRWM funds.
15. Promote the ability of the Regional Water Management Group to more directly administer
state grant funds specifically identified for IRWM Programs.
16. Require the state to rely on the local process for selection and ranking of projects included in
an approved IRWM plan.
Oppose efforts that:
1. Impose additional administrative requirements and/or restricts the Water Authority’s or its
member agencies’ ability to finance public facilities through the issuance of long-term debt.
2. Interfere with the responsibility of a region, operating under an Integrated Regional Water
Management Plan, for setting priorities and generating projects to be paid from any IRWM
accounts and grants.
3. Interfere with the control exercised by the San Diego funding subregion over the use and
expenditure of any water-user fee revenues that may be dedicated to the region.
4. Establish IRWM funding criteria that limits local discretion in project selection.
iii. Rates Support efforts to:
1. Maintain the authority of water agencies to establish water rates locally, consistent with cost-
of-service requirements of the law.
2. Maximize the ability of water agencies to design rate structures to meet local water supply
goals and that conform to cost-of-service requirements of the law.
Oppose efforts that:
1. Impair the Water Authority’s or its member agencies’ ability to provide reasonable service at
reasonable costs to member agencies or to charge all member agencies the same rate for each
class of service consistent with cost-of-service requirements of the law.
2. Undermine or weaken cost-of-service rate-making requirements in existing law.
3. Impair the District’s ability to maintain reasonable reserve funds and obtain and retain
reasonable rates of return on its reserve accounts.
4. Mandate a specific rate structure for retail water agencies.
5. Prescribe mandatory conservation-based rate structures that override the authority of the
boards of directors of local water agencies to set rate structures according to the specific needs
of the water agencies.
6. Usurp special district funds, reserves, or other state actions that force special districts to raise
rates, fees or charges
i.iv. State Water Bonds
Support efforts to:
1. Ensure an equitable share of funding to San Diego County, with major funding categories
being divided by county and funded on a per-capita basis to ensure bond proceeds are
distributed throughout the state in proportion to taxpayers’ payments on the bonds.
2. Ensure a focus on statewide priorities, including restoration of fish and wildlife habitat,
construction of an improved method of conveyance of water through or around the Delta that
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provides water supply reliability to Delta water users, promotion of greater regional and local
self-sufficiency, surface storage, and promotion of water use efficiency.
1.3.Ensure funding from various propositions for local and regional water-related projects.
4. Include within IRWM funding money that a region may use over time to develop and refine
its plan and to develop institutional structures necessary to establish and implement the plan.
5. Ensure primary consideration is given to funding priorities established by local and regional
entities through their IRWM planning process.
6. Ensure that the application process for funding is not unnecessarily burdensome and costly,
with an emphasis on streamlining the process.
7. Limit state overhead to no more than five percent of bond funding amounts.
8. Place as much emphasis and provides at least as much funding for surface storage as for
groundwater storage.
9. Define the “San Diego sub-region” and “San Diego county watersheds” as “those portions of
the westward-flowing watershed of the South Coast hydrologic region situated within the
boundaries of San Diego County.”
2. Ensure primary consideration is given to funding priorities established by local and regional
entities through their IRWM planning process.
3. Ensure that the application process for funding is not unnecessarily burdensome and costly,
with an emphasis on streamlining the process.
4.10. Fund emergency and carryover storage projects including those in San Diego County.
5.11. Consolidate administration of all voter-approved water-related bond funding in one
place, preserves existing expertise within the state bureaucracy to manage bond -funding
processes, and provide consistent application and evaluation of bond funding applications.
12. Ensure funding for water infrastructure projects help to resolve conflicts in the state’s water
system and provide long-term benefits to statewide issues including water supply, reliability,
water quality, and ecosystem restoration.
6.13. Provide and Eexpedite the state’s share of funding for projects that advance the
achievement of the co-equal goals of water supply reliability and Delta ecosystem
restoration.
Oppose efforts that:
1. Changes or do not provide an equitable the share of funding to make San Diego County’s
share less equitable, not based on the San Diego County taxpayers’ proportional contribution
to repayment of the bonds., or change the understanding that all beneficiaries pay an equitable
share.
2.1.Do not provide funding for infrastructure that resolves statewide or regional conflicts of water
supplies.
3.2. Do not provide funding that result in net increases in real water supply and water supply
reliability.
4.3. Commit a significant portion of bond funding to projects that do not result in net increases in
real water supply or water supply reliability.
E. Governance/Local Autonomy
Support efforts to:
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1. Expand local autonomy in governing special district affairs.
2. Promote comprehensive long-range planning.
3. Assist local agencies in the logical and efficient extension of services and facilities to promote
efficiency and avoid duplication of services.
4. Streamline the Municipal Service Review Process or set limits on how long services reviews
can take or cost.
5. Establish clear and reasonable guidelines for appropriate community sponsorship activities.
6. Reaffirm the existing “all-in” financial structure, or protect the San Diego County Water
Authority voting structure based on population.
7. Promote measures that increase broader community and water industry
representation/appointments on State decision making bodies
Oppose efforts that:
1. Assume the state legislature is better able to make local decisions that affect special district
governance.
2. Create one-size-fits-all approaches to special district reform.
3. Unfairly target one group of local elected officials.
4. Usurp local control from special districts regarding decisions involving local special district
finance, operations or governance.
5. Limit or diminish the power of the board of directors’ ability to govern the dDistrict’s affairs.
5.6.Modify the committee or board voting structure unless the board of directors has expressly
authorized such changes.
6.7.Create unfunded local government mandates.
7.8.Create costly, unnecessary or duplicative oversight roles for the state government of special
district affairs.
8.9.Create new oversight roles or responsibility for monitoring special district affairs.
9.10. Change the San Diego County Water Authority Act regarding voting structure, unless
it is based on population.
10.11. Shift the liability to the public entity and relieve private entities of reasonable due
diligence in their review of plans and specifications for errors, omissions and other issues.
11.12. Place a significant and unreasonable burden on public agencies, resulting in increased
cost for public works construction or their operation.
12.13. Impair the ability of water districts to acquire property or property interests required
for essential capital improvement projects.
13.14. Increase the cost of property and right-of-way acquisition, or restricts the use of right-
of-ways.
14.15. Work to silence the voices of special districts and other local government associations
on statewide ballot measures impacting local government policies and practices, including
actions that could prohibit special districts and associations from advocating for positions on
ballot measures by severely restricting the private resources used to fund those activities.
15.16. Prescribe mandatory conservation-based or other rate structures that override the
authority of the board of directors to set its rate structure.
16.17. Circumvent the legislative committee process, such as the use of budget trailer bills, to
advance policy issues including impacting special districts without full disclosure,
transparency, or public involvement.
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F. Optimize District Effectiveness
Support efforts to:
1. Give utilities the ability to avoid critical peak energy pricing or negotiate energy contracts that
save ratepayers money.
2. Develop reasonable Air Pollution Control District engine permitting requirements.
3. Reimburse or reduce local government mandates.
4. Allow public agencies to continue offering defined benefit plans.
5. Result in predictable costs and benefits for employees and taxpayers.
6. Eliminate abuses.
7. Retain local control of pension systems.
8. Be constitutional, federally legal and technically possible. Oppose efforts that:
1. Restrict the use of, or reallocate, district property tax revenues to the detriment of special
districts.
2. Create unrealistic ergonomic protocol.
3. Micromanage special district operations.
4. Balance the state budget by allowing regulatory agencies to increase permitting fees.
5. Tax dependent benefits.
6. Require new reporting criteria on energy intensity involved in water supply.
G. Recycled Water
Support efforts to:
1. Reduce restrictions on recycled water usage or promote consistent regulation of recycled
water projects to reduce impediments to the increased use of recycled water.
2. Reduce restrictions on injecting recycled water into basins where there is no direct potable
use.
3. Provide financial incentives for recharge of groundwater aquifers using recycled water.
4. Make recycled water regulations clear, consolidated, and understandable to expedite related
project permitting.
5. Promote recycled water as a sustainable supplemental source of water.
6. Allow the safe use of recycled water.
7. Facilitate development of technology aimed at improving water recycling.
8. Increasing funding for water recycling projects.
9. Support continued funding of the Title XVI Water Reclamation and Reuse Program including
Water Reclamation and Reuse Projects, the WaterSMART Program, and the Desalination and
Water Purification Research Program.
10. Increase awareness of the ways recycled water can help address the region’s water supply
challenges.
11. Create federal and state incentives to promote recycled water use and production.
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12. Establish federal tax incentives to support U.S. companies in the development of new water
technologies that can lower productions costs, address by products such as concentrates, and
enhance public acceptance of recycled water.
13. Establish a comprehensive national research and development, and technology demonstration,
program to advance the public and scientific understanding of water recycling technologies to
encourage reuse as an alternative source of water supply.
14. Provide incentives for local agencies to work cooperatively, share costs or resources to
promote or expand the use of recycled water.
15. Further refine emergency regulations to reward local suppliers that have invested in using
recycled water for landscape irrigation to maintain an incentive to continue expanding areas
served by recycled water.
16. Encourages the use of recycled water in commercial, industrial, institutional, and residential
settings.
17. Recognizes and supports the development of potable reuse as a critical new supply.
18. Defines purified recycled water as a source of water supply and not as waste.
19. Mandates the reduction of wastewater discharges to the ocean absent inclusion of funding to
offset the significant costs of implementation.
20. Authorize local governmental agencies to regulate the discharge of contaminants to the sewer
collection system that may adversely affect water recycling and reuse.
21. Authorize and facilitate expanded use of local water resources including water recycling,
potable reuse, graywater, and rainwater harvesting (e.g., cisterns and rain barrels), and
brackish groundwater.
22. Streamline regulatory processes and requirements to encourage and support the development
of potable reuse and non-potable reuse as a municipal water supply.
19.23. Recognize the entire interconnected urban water cycle, as well as public health and
safety, must be taken into consideration in long-term water use efficiency policies,
particularly including the unintended consequences of declining flows on water, wastewater,
potable reuse and recycled water systems.
Oppose efforts that:
1. Restrict use of recycled water for groundwater recharge.
2. Establish new water or recycled water fees solely to recover State costs without also
providing some benefit.
2.3.Limit the ability of local governmental agencies to regulate the discharge of contaminants to
the sewer collection system that may adversely affect water recycling and reuse.
4. Establish unreasonable regulatory requirements or fees to the safe use of recycled water,
which may unreasonably impede or create a disincentive to the existing authority for theits
further development of the safe use of recycled water.
3.5.Mandate the reduction of wastewater discharges to the ocean absent inclusion of funding to
offset the significant costs of implementation.
H. Safety, Security and Information Technology
Support efforts to:
1. Provide funding for information security upgrades to include integrated alarms, access/egress,
and surveillance technology.
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2. Provide incentives for utilities and other local agencies to work cooperatively, share costs or
resources.
3. Provide funding for communication enhancements, wireless communications, GIS or other
technological enhancements.
4. Encourage or promote compatible software systems.
5. Fund infrastructure and facility security improvements that include facility roadway access,
remote gate access and physical security upgrades.
6. Protect state, local and regional drinking water systems from terrorist attack or deliberate acts
of destruction, contamination or degradation.
7. Provide funds to support training or joint training exercises to include contingency funding for
emergencies and emergency preparedness.
8. Equitably allocate security funding based on need, threats and/or population.
9. Encourage or promote compatible communication systems.
10. Encourage and promote funding of Department of Homeland Security Risk Mitigation
programs.
11. Recognizes water agencies as emergency responders to damage and challenges caused by
wildfires, earthquakes, and other natural disasters, as well as terrorist and other criminal
activities that threaten water operations, facilities and supplies.
12. Provide state grant or other funding opportunities to support seismic risk assessment and
mitigation plans, or to mitigate vulnerabilities.
13. Provide funding for projects that enhance security against terrorist acts or other criminal
threats to water operation, services, facilities, or supplies.
Oppose efforts that:
1. Create unnecessary, costly, or duplicative security or safety mandates.
2. Require expanded water system descriptions or additional public disclosure of public water
systems details for large water suppliers in Urban Water Management Planning documents,
potentially compromising public water systems and creating a conflict with the Department of
Homeland Security’s recommendation to avoid reference to water system details in plans
available to the general public.
I. Water Services and Facilities Support efforts to:
1. Provide funding to implement actions identified in the California Water Action Plan to lay a
solid fiscal foundation for implementing near-term actions, including funding for water
efficiency projects, wetland and watershed restoration, groundwater programs, conservation,
flood control, and integrated water management and result in a reliable supply of high-quality
water for the San Diego region.
2. Provide financial support to projects designed to mitigate the potential negative impacts of
Global Climate Change on water supply reliability.
3. Promote the coordination and integration of local, state and federal climate change policies
and practices to the greatest extent feasible.
4. Fund or otherwise facilitate ongoing implementation of the Quantification Settlement
Agreement.
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5. Provide reliable water supplies to meet California’s short and long-term needs.
6. Promote desalination pilot studies and projects.
7. Encourage feasibility studies of water resource initiatives.
8. Increase funding for infrastructure and grant programs for construction, modernization or
expansion of water, wastewater treatment, reclamation facilities and sewer systems including
water recycling, groundwater recovery and recharge, surface water development projects and
seawater desalination.
9. Fund enhancements to water treatment, recycling, and other facilities to meet increased
regulations.
10. Mandate uniform or similar regulations and procedures by state agencies in the processing
and administering of grants and programs.
11. Streamline grant application procedures.
12. Reduce regulations and other impediments for willing sellers and buyers to engage in water
transfer agreements.
13. Promote or assist voluntary water transfers between willing buyers and willing sellers and
move those transactions through without delay.
14. Streamline the permitting and approval process for implementing water transfers.
15. Establish reasonable statewide approaches to sewer reporting standards.
16. Generate greater efficiencies, better coordinate program delivery, and eliminate duplication in
programs for source water protection without lessening the focus on public health of the
state’s Drinking Water Program.
17. Target efforts to fix specific issues with water supplies within the state’s Drinking Water
Program.
18. Establish federal tax incentives to support U.S. companies in the development of new
desalination technologies that can lower productions costs, eliminate or reduce impingement
or entrainment, reduce energy use, and enhance public acceptance of desalinated water.
19. Establish a comprehensive national research and development, and technology demonstration
program to advance the scientific understanding of desalination to expand its use as an
alternative source of water supply.
20. Require the State Water Resources Control Board to exercise its authority, ensure robust
funding, and implement the Salton Sea mitigation and restoration plan, meet state obligations,
and work with QSA stakeholders to find workable solutions to ensure the continuation of IID
water transfers.
21. Support solutions to water supply issues that address common challenges, provide a
comprehensive approach that is fair to all users, balance the needs of urban and rural
communities, and take into consideration the interests of all stakeholders as well as the impact
to the environment.
22. Further refine emergency drought regulations to eliminate a cap on credits and adjustments so
as not to impose undue burden, financial or otherwise, on communities that have already
invested in water conservation, development of new water sources, storage, or loss
prevention.
23. Provide funding for water infrastructure development, infrastructure security, and
rehabilitation and replacement projects that benefit ratepayers.
24. Provide funding for habitat preservation programs that address impacts resulting from
construction or operation of water system facilities.
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25. Provide funding for projects that enhance security against terrorist acts or other criminal
threats to water operation, services, facilities, or supplies.
26. Provide incentives that encourage contractors to recycle or reduce waste associated with
construction of water facilities.
27. Improve the local agencies’ efforts to maintain and protect its property, rights of way,
easements, pipelines, and related facilities and minimizes liability to local agencies and the
District.
26.28. Protect the local agencies’ properties from restrictions when surrounding properties
are incorporated into preservation areas.
Oppose efforts that:
1. Make urban water supplies less reliable or substantially increase the cost of imported water
without also improving the reliability and/or quality of the water.
2. Create unrealistic or costly water testing or reporting protocol.
3. Disproportionately apportion the cost of water.
4. Create undo hurtles for seawater desalination projects.
5. Create unreasonable or confusing sewer reporting standards.
6. Create administrative or other barriers to sales between willing buyers and willing sellers that
delay water transfers.
7. Create a broad-based user fee that does not support a specific local program activity or
benefit; any fee must provide a clear nexus to the benefit local ratepayers or local water
supplies from the establishment that charge or fee would provide.
8. Create unrealistic or costly to obtain water quality standards for potable water, recycled water
or storm water runoff.
9. Change the focus of the state’s Drinking Water Program or weaken the parts of the program
that work well.
10. Lessen the focus on public health of the state’s Drinking Water Program.
11. Create one-size-fit-all approaches to emergency drought regulations that ignore variations
among communities, regions, and counties with respect to their ability to withstand the impact
and effects of drought.
12. Impose undue burden, financial or otherwise, on communities that have already invested in
water conservation, development of new water sources, storage, or loss prevention.
13. Impose additional mitigation costs or obligations for the Salton Sea on the non-state parties to
the Quantification Settlement Agreement.
14. Impairs local agencies’ ability to provide and operate the necessary facilities for a safe,
reliable and operational flexible water system.
15. Limits local agencies’ sole jurisdiction over planning, design, routing, approval, construction,
operation, or maintenance of water facilities.
16. Restricts local agencies’ ability to respond swiftly and decisively to an emergency that
threatens to disrupt water deliveries or restricts the draining of pipelines or other facilities in
emergencies for repairs or preventive maintenance.
17. Authorizes state and federal wildlife agencies to control, prevent, or eradicate invasive species
in a way that excessively interferes with the operations of water supplies.
18. Prohibit or in any way limit the ability of local agencies from making full beneficial use of
any water, wastewater, or recycling facility and resource investments.
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19. Impair the local agencies’ efforts to acquire property or property interests required for
essential capital improvement projects or acquisition of property to meet pipeline water drain-
down needs for existing facilities.
20. Increase the cost of property and right of way acquisition.
21. Restrict the local agencies’ use of public rights of way or increases the cost of using public
rights of way.
18.22. Restrict the transfer of property acquired for purposes of environmental mitigation or
environmental mitigation credits to other public or private entities for long-term management.
J. ConservationWater-Use Efficiency
Support efforts to:
1. Provide funding for water-use efficiency and water conservation programs including water-
efficient devices, practices and demonstration projects and studies.
2. Encourage the installation of water-efficient fixtures in new and existing buildings.
3. Promote the environmental benefits of water-use efficiency and water conservation.
4. Enhance efforts to promote water-use efficiency awareness and conservation.
5. Offer incentives for landscape water-efficient devices including, but not limited to ET
controllers and soil moisture sensors.
6. Develop landscape retrofit incentive programs and/or irrigation retrofit incentive programs.
7. Permit or require local agencies to adopt ordinances that require or promote water-wise
efficient landscapes for commercial and residential developments.
8. Create tax incentives for citizens or developers who install water-wise efficient landscapes.
9. Create tax incentives for citizens who purchase high-efficiency clothes washers, dual-flush
and high-efficiency toilets and irrigation controllers above the state standards.
10. Expand community-based conservation water-use efficiency and education programs.
11. Develop incentives for developers and existing customers to install water-wise efficient
landscape in existing developments or new construction.
12. Encourage large state users to conserve save water by implementing water-efficient
technologies in all facilities both new and retrofit.
13. Maintain incentives for solar power.
14.13. Encourage large state water users to conserve save water outdoors.
15.14. Educate all Californians on the importance of water, and the need to conserve,
manage, and plan for the future needs.
16.15. Encourage technological research targeted to more efficient water use.
17.16. Give local agencies maximum discretion in selecting water-use efficiency and
conservation programs that work for their customers and the communities they serve.
18.17. Require the Department of Water Resources to implement a uniform statewide turf
rebate subsidy or incentive program.
19.18. Require Restrict Property Owners Associations to allow from forbidding the use low
water use of California native plants, other low water use plants, mulch, artificial turf, or
semi-permeable materials in well-maintained landscapes.
20. Creates a process for development and implementation of emergency drought declarations
and regulations that recognizes variations among communities, regions, and counties with
respect to their abilities to withstand the impacts and effects of drought.
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21. Recognizes variations among communities, regions, and counties with respect to their abilities
to withstand the impacts and effects of droughts, and ensures that any temporary or permanent
statutory or regulatory direction for improving water-use efficiency to meet statutory or
regulatory goals or standards is focused on regional achievement of objectives rather than a
one-size-fits-all approach.
19. Provides for federal tax-exempt status for water- use efficiency rebates, consistent with
income tax treatment at the state level.
20. Encourage the use of graywater where it complies with local guidelines and regulations and is
cost-effective.
21. Provide incentives, funding, and assistance to water agencies so that they can meet the water
demand management measure requirements in the Urban Water Management Planning Act.
22. Provide incentives, funding, and other assistance to facilitate water-use efficiency
partnerships with the energy efficiency sector.
23. Recognize local control in determining water use efficiency criteria, such as impact of
recycled water salinity on irrigation use and efficiency for the application of non-potable
recycled water.
22.24. Encourage reasonable tracking of water use and improved efficiency in the
Commercial, Industrial, and Institutional (CII) sector.
Oppose efforts that:
1. Weaken federal or state water-efficiency standards.
2. Introduce additional analytical and reporting requirements that are time-consuming for local
agencies to perform and result in additional costs to consumers, yet yield no water savings.
3. Permit Property Owners Associations to restrict low water use plants, mulch, artificial turf, or
semi-permeable materials in landscaping.
3.4.Repeal cost-effective efficiency standards for water-using devices.
5. Create one-size-fit-all approaches to emergency drought regulations that ignore variations
among communities, regions, and counties with respect to their ability to withstand the impact
and effects of drought.Repeal cost-effective efficiency standards for water-using devices.
6. Create stranded assets by establishing long-term demand management water-use efficiency
and water supply requirements that are inconsistent with the Urban Water Management
Planning Act.
7. Prescribe statewide mandatory urban and agricultural water-use efficiency practices,
including, but not limited to, methods, measures, programs, budget allocation, and designation
of staff dedicated to water conservation programs, that override the authority of the boards of
directors of local water agencies to adopt management practices that are most appropriate for
the specific needs of their water agencies.
8. Mandate regulation of the CII Sector in a manner that is discriminatory, or sets unachievable
Best Management Practices or compliance targets, or would otherwise impair economic
activity or the viability of the CII sector.
4.9.Mandate that water agencies include an embedded energy calculation for their water supply
sources in the Urban Water Management Plan or any other water resource planning or master
planning document.
1
Anticipated “Top 10” or So Issues for 2018 – Prior to Bill Introduction Deadline
1. Water Tax – Prior to the Legislature adjourning last year, SB 623 (Monning) that will create
the first ever tax on drinking water in California, became a 2-year bill. Now that the
Legislature is back in session for 2018, SB 623 may be acted upon.
In addition to SB 623, the Governor’s proposed budget, released last week, proposes to
create a new special fund, the “Safe and Affordable Drinking Water Fund,” for the State
Board to assist communities in paying for short-term and long-term costs of obtaining access
to safe and affordable drinking water. The Administration is also proposing statutory
language, consistent with the policy framework of SB 623. This trailer bill language has not
yet been submitted by the Administration.
2. California WaterFix – In the final year of Governor Brown’s term, the California WaterFix
is expected to be a high priority for the Administration. After the setbacks in the fall with
Westlands Water District refusing to pay for the tunnels or Santa Clara Valley Water District
asking for a smaller project, the Administration has pivoted to looking at one tunnel, instead
of two. At this point, it has not been made public whether a decision has been made to move
forward with one or two tunnels. I would expect the Legislature to continue to be engaged in
an oversight role of this large infrastructure project. We may see some legislation introduced,
as well.
3. Making Water Conservation a California Way of Life – In April 2017, the Administration
published its final framework for implementing Executive Order B-37-16, which instructed
state agencies to build upon water conservation efforts in recent years and establish long-
term water conservation measures. While the drought emergency was lifted in early April
after water conservation efforts and unprecedented rainfall, the order continued to prohibit
wasteful water use practices set forth by B-37-16, warning that the next drought may be
around the order.
During the 2017 legislative session, multiple bills were introduced and amended to try to put
the Administration’s water conservation recommendations into statute. However, none of the
bills were passed in 2017, but they are 2-year bills and can be acted on at any time this year.
Additionally, there may be new bills introduced in 2018 to advance the Administration’s
long-term water conservation goals. One of the bills from 2017 is AB 1667 (Friedman),
which would require the State Board, in consultation with the Department of Water
Resources, to adopt long-term standards for urban water conservation and water use. The bill
would also require the State Board, in consultation with the department, to adopt
performance measures for commercial, industrial, and institutional water use. Otay Water
District took an oppose position on AB 1667, which is also a 2-year bill that may be acted on.
4. Proposition 218 – Proposition 218 is a voter approved constitutional amendment that limits
taxation by local governments without voter approval. The reform of Proposition 218
continues to be a topic of discussion in Sacramento and the water community, including to
allow for low-income water rate assistance, something the Legislature has been pushing for.
Additionally, there remains uncertainty with Proposition 218 due to recent court decisions.
Attachment D
2
5. Salton Sea – The Salton Sea continues to be a topic of discussion in the Legislature,
therefore there may be legislation proposed in 2018. The Governor’s recently proposed
budget includes funding for the restoration of the Salton Sea, providing $30 million from SB
5 (de León), if approved by voters on the June 2018 ballot, for the Natural Resources Agency
to construct water management infrastructure and habitat conservation and dust mitigation
projects and $170 million for the implementation of the Salton Sea Management Program 10-
year plan.
6. Water Bond(s) – SB 5 (de León), the California Drought, Water, Parks, Climate, Coastal
Protection, and Outdoor Access For All Act, was approved by the Legislature and Governor
last year and will be on the June 2018 ballot for voter approval. Even though SB 5 has not
even secured voter approval yet there continues to be discussion of another water bond.
7. Cap and Trade Expenditures – Money from cap and trade auction revenue has previously
been appropriated to the Department of Water Resources for water efficiency and the
Department of Fish and Wildlife for wetlands and watershed restoration. Even though the
Governor has submitted his proposed 2018-19 budget, the Cap and Trade Expenditure Plan
was not part of it. The Governor’s office has stated that he will propose the 2018-19 Cap and
Trade Expenditure Plan in his State of the State, scheduled for Thursday, January 25th.
8. Dam Safety – There has been a lot of interest in dam safety after the Oroville Dam spillway
incident that caused the evacuation of over 180,000 residents living downstream in February
of last year. Following this, the Department of Water Resources was ordered to create a task
force comprised of experts to assess the dam, present recommendations to the department,
and begin rebuilding the spillway. The incident shed light on the state’s need for investment
in existing dam and flood infrastructure. The Governor’s January budget highlighted the
efforts the state has and will be taking to enhance dam safety going forward.
The Legislature continues to provide oversight and hold informational hearings on what
happened at Oroville, including as recently as last week. In addition to oversight, legislation
may also be introduced this year.
9. Water Plan Update 2018 – The Department of Water Resources is currently in the process
of updating the Water Plan. They released the Preliminary Draft of Update 2018 in
September 2017. The plan reaffirms the State’s commitment to a sustainable future and
describes how the State can support and empower local and regional entities to make the
vision of sustainable water resources management a reality. Building upon Update 2013,
Update 2018 is the twelfth in a series of California Water Plans since 1957. The 2018 update
is expected to be final by the end of the year.
10. Water Storage – Proposition 1, approved by voters in 2014, authorizes the state to spend
$7.545 billion in general obligation bonds to fund ecosystems and watershed protection and
restoration, water supply infrastructure projects, including surface and groundwater storage,
and drinking water protection. $2.7 billion – the largest portion of the bond – may be spent
on new water storage infrastructure projects. The California Water Commission, through the
Water Storage Investment Program, allocates funding for water storage projects. In August
3
2017, 12 applicants submitted projects for the Commission's review. The Commission is
currently evaluating the projects for eligibility and the level of public benefits provided. By
June 2018, the Commission will determine the maximum funding for which each water
storage project is eligible.
In addition to Proposition 1 funding, the Governor’s 2018-19 proposed budget includes
funding for water and flood control infrastructure project from SB 5, if approved by the
voters.
11. Sexual Harassment – Even though we are only a few weeks into the 2018 legislative
session, the fallout from sexual harassment allegations can already be seen in the Legislature.
The Assembly has had 3 resignations, resulting in the loss of the 2/3 super majority held by
Assembly Democrats in 2017.
As a California employer, I would expect legislation to be introduced and passed in 2018 to
require additional training for employees, supervisors and even subcontractors, specific
reporting requirements, amongst many others. Since we are still over a month away from the
bill introduction deadline, it is too soon to know exactly what the Legislature will propose.
STAFF REPORT
TYPE MEETING: Regular Board Meeting MEETING DATE: February 7, 2018
SUBMITTED BY: Mark Watton,
General Manager
W.O./G.F. NO: DIV. NO.
APPROVED BY:
Susan Cruz, District Secretary
Mark Watton, General Manager
SUBJECT: Board of Directors 2018 Calendar of Meetings
GENERAL MANAGER’S RECOMMENDATION:
At the request of the Board, the attached Board of Director’s meeting
calendar for 2018 is being presented for discussion.
PURPOSE:
This staff report is being presented to provide the Board the
opportunity to review the 2018 Board of Director’s meeting calendar
and amend the schedule as needed.
COMMITTEE ACTION:
N/A
ANALYSIS:
The Board requested that this item be presented at each meeting so
they may have an opportunity to review the Board meeting calendar
schedule and amend it as needed.
STRATEGIC GOAL:
N/A
FISCAL IMPACT:
None.
LEGAL IMPACT:
None.
Attachment: Calendar of Meetings for 2018
G:\UserData\DistSec\WINWORD\STAFRPTS\Board Meeting Calendar 2-7-18.doc
Board of Directors, Workshops
and Committee Meetings
2018
Regular Board Meetings:
Special Board or Committee Meetings (3rd
Wednesday of Each Month or as Noted)
January 3, 2018
February 7, 2018
March 7, 2018
April 4, 2018
May 2, 2018
June 6, 2018
July 11, 2018
August 1, 2018
September 5, 2018
October 3, 2018
November 7, 2018
December 5, 2018
January 17, 2018
February 21, 2018
March 21, 2018
April 18, 2018
May 16, 2018
June 20, 2018
July 18, 2018
August 15, 2018
September 19, 2018
October 17, 2018
November 21, 2018
December 19, 2018
SPECIAL BOARD MEETINGS:
BOARD WORKSHOPS:
STAFF REPORT
TYPE
MEETING:
Regular Board
MEETING
DATE:
February 7, 2018
SUBMITTED
BY:
Mark Watton
General Manager
W.O./G.F.
NO:
N/A DIV.
NO.
N/A
APPROVED BY:
Mark Watton, General Manager
SUBJECT: General Manager’s Report
ADMINISTRATIVE SERVICES:
GIS:
Sewer Overflow Simulation Model – GIS staff is working with
Engineering and Sewer Collection staff to develop a Sewer Overflow
Simulation application. The application provides tools that can be
used to predict any sewer overflow directions, paths and estimated
times to each water body. The information will be used for reports
required by the Regional Water Board. Staff also uses this
information to take action to prevent the sewer flow from reaching
any water bodies.
Human Resources:
Benefits - HR staff worked with its third party administrator,
Businessolver, to prepare the required tax forms (1095c) and the
required IRS reporting (1094c). The tax forms are maintained by
health plan participants to provide proof of minimum essential
coverage as required by Health Care Reform. Businessolver will be
sending the forms to employees by March 2, 2018, and IRS tax filing
is due April 2, 2018.
Recruitments/New Hires - The Facilities Maintenance Technician and
Finance Manager positions have been filled with incumbents
beginning employment in January. The District is recruiting for an
Accountant and is preparing to recruit for a Disinfection
Technician. These positions are all related to upcoming retirements
and are critical to District operations.
2
IT Operations:
Recognition of Quality Information Technology Practices - The
District’s Information Technology (IT) group received the Municipal
Information Systems Association of California’s (MISAC) achievement
award for “Quality Information Technology Practices” for 2017. The
MISAC award program recognizes public agency Information Technology
groups throughout California for their exemplary technology service
and operation practices and standards. The selection process
evaluated several different subject areas to include enterprise
technology operations, project management, system deployment,
disaster recovery, and cybersecurity practices, all of which were a
collaborative effort by the District’s IT group. Other notable
agencies to receive this award were City of Coronado, City of
Huntington Beach, and Western Municipal Water District.
Purchasing & Facilities:
SDG&E’s EcoChoiceSM Program Enrollment – The District has enrolled
seven(7) eligible facilities, including Administration, Operations,
three (3)reservoirs, one (1)pump station and one(1) hydro station,
in SDG&E’s EcoChoiceSM Program. The program supplies 100 percent
renewable solar energy produced from an ever increasing pool of
solar energy providers, which has a current capacity of 100
Megawatts (MW). The District’s participation not only supports the
adoption and expansion of renewable energy initiatives throughout
the region, it also provides its customers with a more
environmentally responsible water delivery power source along with
a small reduction in energy cost of $340.00 per month. As SDG&E
increases capacity in this program, the District will evaluate the
enrollment of additional facilities.
BidSync Solicitations – During the previous period, there were 3
solicitations out on BidSync:
o “Valve Enclosures” – For delivery of 18 air-vacuum valve
enclosures for a budgeted amount of $13,500.
o “Steele Bridge SPS Wet Well Improvements” - For the removal and
disposal of the wet well top slab, replacement of a concrete top
slab with access hatches and hand holes, furnishing and
installation of a new stainless steel wastewater bar screen with
grouting, wet well interior coating and appurtenances at an
estimated cost of $50,000.
o “520 Reservoirs Chemical Feed Improvements ” – For the removal
and replacement of ammonia chemical piping, injection vault
modifications, concrete floor, injector replacement, valve
additions and appurtenances for a budgeted amount of $50,000.
3
1004-2 Reservoir Wildfire Defensible Space - At the Operation
Department’s request, Facilities solicited quotes to clear a
defensible space around the 1004-2 Reservoir located at 1828 La
Presa Avenue, Spring Valley. D&D Wildlife Habitat Restoration, Inc.
(D&D) has been awarded the project which is scheduled to be
completed prior to the beginning of nesting season in mid-
February. Per County of San Diego Department of Planning and Land
Use, D&D is to keep natural vegetation in place and cut it back to
no more than 6 inches above the ground.
Safety & Security:
District’s HAZWOP and Confined Space Emergency Response Team – The
District HAZWOP team completed quarterly training on confined space
rescue techniques. The team received hands-on instruction on field
rescue extraction, use of rope, and rescue equipment. This training
offers the team an opportunity to integrate three new team members
and keeps the team on a continuous readiness state.
Monthly WebEOC Exercise – Staff completed January’s monthly WebEOC
exercise, which consisted of: “Navigate to the WAEC Members list
under Plugins, File & Map Library, Water Hub Docs. Find your
agency’s information, and provide any updates to
colvera@sdcwa.org”.
Flu & Cold Prevention - Under best practices and for the prevention
of the spread of germs and flu/cold viruses, hand sanitizing
stations were strategically installed throughout the District.
District Safety Programs – The District completed a review and
updated (as needed) the following District safety programs:
Ergonomics, Low and High Voltage, Lockout/Tagout/Blockout, Abrasive
Wheels and Grinding Equipment, and Code of Safe Practices. These
updated programs were shared with stakeholders and the District’s
Safety Committee for their review and input. Once finalized, these
programs will be posted on SharePoint.
FINANCE:
Future Debt Issuance for Water and Sewer CIP Projects – Staff will
be analyzing the amount of debt that needs to be issued in the
upcoming year based upon the CIP projects. For the sewer CIP
projects, staff was pursuing funding from the State Revolving
Fund; however, at this time it is unlikely the funding will be
available. Staff has begun to investigate using a private
placement, which is more cost effective for smaller debt issuances
than COPS debt. For the water CIP projects, staff will determine
the amount of debt necessary and will be looking to issue COPS debt
for the funding.
4
Payroll Outsourcing – Staff has reviewed ADP’s modified proposed
payroll solution and re-opened the selection process to
competitors. None of the competitor solutions were capable of
meeting the District’s needs for maximizing efficiency and
effectiveness of payroll. The District has again selected ADP as
the preferred provider and will be seeking Board approval in March.
Master Meter Update- Staff has been in discussion with Master Meter
regarding a large increase in under-warranty register failures.
These failures are from registers purchased in 2009, 2010, and
2011. In January, Master Meter notified the District that it has
determined the cause of these premature failures and may result in
over 18,000 register change outs. Staff will receive more
information when Master Meter’s management team visits the District
the week of February 5th.
The Pointe HOA Pump Station Agreement – Staff has been working with
The Pointe HOA to update their contractual contributions for The
Point Hydro pump station. This is to ensure the amount collected
by the District is adequate to cover the capital replacement and
O&M costs related to the pump station per the agreement with the
HOA.
Cost of Service Study – Staff is reviewing the results of the sewer
Cost of Service study, which was performed by HDR and scheduled to
be presented to the Board in March.
Financial Reporting:
o For the six months ending December 31, 2017, there were a total
revenues of $55,315,378 and total expenses of $51,802,068. The
revenues exceeded expenses by $3,513,310.
o The market value shown in the Portfolio Summary and in the
Investment Portfolio Details as of December 31, 2017 total
$86,331,726 with an average yield to maturity of 1.237%. The
total earnings year-to-date are $475,227.
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). During
the month of January 2017 Pacific Hydrotech began installation of
planned 30-inch recirculation pipe within 571-1 Reservoir and
delivery of the planned 66-inch cement mortar lined coated steel
5
pipe from Ameron International Corporation, the pipe manufacturer,
commenced. In late January 2018, fabrication of the 571-1 Reservoir
liner and cover began at Layfield in preparation for installation in
February 2018. The project is within budget and scheduled to
complete in October 2019. (P2083 & P2562)
SR-11 Utility Relocations: This project consists of relocating
several District potable water pipelines located in Otay Mesa Road,
Sanyo Avenue, Enrico Fermi Drive, Alta Road, and within District
easements. The first two rounds of relocations (Caltrans Utility
Agreement Numbers 33592 and 33622) were completed in FY 2016. The
District’s water main relocation consultant (NV5) began design of
relocations in Enrico Fermi Drive and Alta Road in November 2017.
Caltrans has scheduled completion of the design in March 2018 and
the start of construction in April 2019. Utility agreements
corresponding to the final design will be presented to the
District’s Committee and Board in the April/May 2019 timeframe. As
part of the SR-11 project, Caltrans will need to acquire a portion
of the District’s fee-owned right-of-way that is located in the Alta
Road alignment south of Otay Mesa Road. Caltrans has submitted an
appraisal of the District’s property they intend to acquire, which
is currently under review. (P2453)
978-1 & 850-2 Reservoir Interior/Exterior Coatings & Upgrades: This
project consists of removing and replacing the interior and exterior
coatings of the 978-1 (0.5 MG) Reservoir and the 850-2 (3.1 MG)
Reservoir 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. Work at the 978-1 Reservoir is substantially
complete and the reservoir was placed back in service in July 2017.
During the month of January, 2018, Blastco, Inc., the District’s
contractor, completed the cleaning, disinfection, and testing at the
850-2 Reservoir. The 850-2 Reservoir was placed back into service
on January 12, 2018. Contract acceptance by the District is
anticipated in February 2018 pending remaining punch list items.
Project delivery by the contractor was behind schedule due to
contractor coordination. As a result, the District has assessed
liquidated damages for late delivery of the project starting in
September 2017 through substantial completion which occurred when
the 850-2 Reservoir was placed back into service. The project is
within budget. (P2534 & P2544)
Campo Road Sewer Replacement: The existing sanitary sewer from
Avocado Road to Singer Drive is undersized and located in
environmentally sensitive areas that are difficult to access. The
Campo Road Sewer Replacement project will install approximately
7,420 linear feet of new 15-inch gravity sewer and include
abandonment of the existing sewer main. Work in January 2018
6
included the installation of the new sewer main in Campo Road
between the State Route 94 (SR 94)/Jamacha Road (SR 54) intersection
and the Rancho San Diego Towne Center. Installation of new sewer
also commenced with a second crew in the area of Campo Road that
fronts the Sheriff’s substation. Boring operations began at the
West Bore Pit, which is located adjacent to the intersection of
Campo Road and Via Mercado. Excavation work commenced for the East
Bore Pit, which is located adjacent to the east entrance of Skyline
Church. A majority of the work in Campo Road, within the Caltrans
right-of-way, continues to be performed at night under traffic
control. Activities near environmentally sensitive areas will be
halted during the breeding season of endangered species, between
February and September pending a survey of active nesting. The
project is within budget and the overall project is scheduled for
completion in April 2019. (S2024)
927 Zone, Force Main Assessment and Repair Project: This project
consists of inspection, condition assessment, and repair of the
existing Ralph W. Chapman Water Reclamation Facility (RWCWRF) 1980
era, 16,000 feet long, 14-inch diameter steel force main. Last
winter, the District’s contractor Charles King completed the
construction of the new blow offs, restored the access road to a
serviceable condition, aided in placing the force main back into
service, and demobilized from the project area. District staff
worked with the contractor on a no-cost time extension to allow the
remaining contract work to be completed during the subsequent
environmental window. At the end of December 2017, work on this
project was deemed substantially complete and in January 2018 the
construction contract was accepted. The overall project is within
budget. (R2116/P2508)
Hillsdale Road Potable Water and Sewer Replacement: The existing
water line in Hillsdale Road between Jamacha Road and Vista Grande
Road has experienced several leaks and is nearing the end of its
useful life. This project consists of replacing approximately
4,050 linear feet of steel water line with a 12-inch Polyvinyl
Chloride (PVC) water line. The project also includes the
replacement of approximately 760 linear feet of 8-inch PVC sewer
within Hillsdale Road. During early January 2018, T C Construction
Company, Inc., the District’s contractor, installed the 12-inch
water line in the area that fronts the main entrances of Valhalla
High School. This work took place during the school’s two week
winter recess. Work to install the 12—inch water line within
Hillsdale Road between Wind River Road and Vista Grande Road also
took place during January 2018. The project is within budget and
on schedule to complete in May 2018. (P2573 & S2048)
7
Vista Vereda Water 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. Through the District’s As-Needed Engineering Design
contract, a Task Order was issued on May 2, 2017 to Rick
Engineering to design the project. A preliminary design report has
been completed, with the final report submitted to the District on
January 10, 2018. The changing of the Vista Vereda water line from
a transmission main to local distribution only and upgrading the
water lines in Hidden Mesa Road to become a transmission main is
recommended based upon assessment of the challenges of
reconstructing a transmission main along the current alignment.
The Hidden Mesa Road water line upgrade portion is now covered
under CIP P2625, as approved by the Board at the November 1, 2017
meeting. The initial design budget approved for the Vista Vereda
project was based upon replacing the existing water line in place,
but an alternative fee was included in Rick Engineering’s proposal
for including the design in Hidden Mesa Road. A task order change
has been executed to revise the scope of work. A community meeting
in February 2018 is in the process of being planned. The project
is on schedule for completion of the design in June 2018, although
community outreach efforts may potentially delay it. (P2574 &
P2625)
OWD Administration and Operations Parking Lot Improvements, Phase II
– Pavement Restoration: Phase I of this project, completed in
October 2017, upgraded the parking lot light fixtures in both the
Administration and Operations lots. Phase II consists of repairing
the Asphalt Concrete (AC) paving, slurry sealing, and restriping
both AC parking lots. In addition to the pavement improvements, a
carport will be installed to protect the larger fleet vehicles, and
gates will be installed to better secure the Operations parking lot.
Phase II was advertised for construction bid on January 24, 2018.
The bid opening is scheduled for February 21, 2018, and will be
presented to the Board for award at the April Board Meeting. The
project is on schedule and within budget. (P2555)
980-2 Reservoir Interior/Exterior Coating and Upgrades: This project
consists of removing and replacing the interior and exterior
coatings of the 980-2 (5.0 MG) Reservoir, along with providing
structural upgrades, to ensure the tank complies with both state and
federal OSHA standards as well as the American Water Works
Association and the County Health Department standards. A Notice to
Proceed was issued to Simpson Sandblasting and Special Coatings,
Inc. on November 1, 2017. During the month of January 2018, the
contractor began the structural upgrade work on rafter system that
8
supports the reservoir’s roof. The project is within budget and
scheduled to complete in May 2018. (P2546)
Rancho San Diego Pump Station Rehabilitation: On April 30, 2014,
the District and the San Diego County Sanitation District
(Sanitation District) executed a reimbursement agreement for the
improvements to the Rancho San Diego Pump Station that were expected
to be completed on or about March 2016. The Sanitation District
awarded a construction contract to T C Construction Company Inc. on
September 14, 2016. Start-up and testing of the pump station is
scheduled to begin in April of 2018 and construction completion will
be early May 2018. (S2027)
Formation of Groundwater Sustainability Agency (GSA) and Groundwater
Sustainability Plan (GSP): In September 2014, the Sustainable
Groundwater Management Act (SGMA), Water Code Sections 10720-
10736.5, requires the formation of GSA(s) and GSP(s) throughout
California including the District’s service area. The San Diego
Formation (SDF) aquifer overlaps the District as well as other water
retailers, including the City of San Diego (City), Sweetwater
Authority (SWA), Otay Water District, and California American Water
(CalAm). On January 9, 2018, a meeting was held with staff from the
District, SWA, CalAm, and Imperial Beach to discuss the alternatives
and see if there is any interest in forming a joint GSA. All
agencies have decided to continue work with the City and SWA on the
GSP and defer the discussion on the formation of a GSA until later
in the process. SWA proposed that costs for the in-progress GSP and
associated future maintenance would be split proportionally to the
size of each agencies service area overlapping onto SDF aquifer
boundaries. If so, the District’s split would be roughly seven
percent. (P1210)
Trails at Habitat Management Area (HMA): Otay Staff has been
participating as a stakeholder in the Otay Regional Trail Alignment
Study being carried out by the County Department of Parks and
Recreation. Other stakeholders include the City of San Diego, the
City of Chula Vista, Sweetwater Authority, the National Wildlife
Refuge, USFWS, CDFW, US Border Patrol, and the BLM. RECON
Environmental is the consultant being used by the County. The
purpose of the study is to identify trail alignments that protect
sensitive natural and cultural resources and will ensure a
sustainable trail system that minimizes erosion and impacts to
water quality. The District is a stakeholder as it is the
District’s facilities that is being studied in the area for
possible trail creation, including the HMA (see attached location
map).
The County is proposing one potential trail as part of their study
that passes through a portion of the HMA and on the edge of the
9
HMA, adjacent to the Golf Course on a disturbed path, most of which
is paved. It also follows an SDG&E dirt access road that goes
through the HMA to meet a trail that is being proposed through the
National Wildlife Refuge. This is a highly coveted trial because
it provides a loop for trail users rather than forcing them to dead
end at the HMA. There is still a lot of work that would need to be
done before any of the proposed trails, including this trail, could
be approved. In discussions with County trails staff, staff
mentioned that liability was a big concern for the District and the
County expressed that they would not be opposed to working out an
agreement where the County would assume liability for the trail.
In addition, they were not opposed to maintaining some kind of
buffer between the trail and the HMA that would keep users from
going off the trail (details to be worked out). Since USFWS and
CDFW are stakeholders in this group, and are also the agencies that
oversee the District’s management of the HMA, they would most
likely approve this trail through the HMA, particularly since it is
on already established paths (that trail users use anyway, although
illegally). A major goal of this study is to establish trails that
will benefit trail users so that they will be less likely to
establish and/or use illegal trails.
For the month of December 2017, the District sold 78 meters (110.5
EDUs), generating $1,000,670 in revenue. Projection for this period
was 23.6 meters (30.8 EDUs), with a budgeted revenue of $270,083.
Total revenue for Fiscal Year 2018 is $2,546,654 against the annual
budget of $3,241,000.
Water System Operations (reporting for December):
Out of 66 K-12 schools in the District, 44 have received lead
sampling results. All results were below action levels.
On December 4, Sweetwater Authority (SWA) requested the Douglas
interconnect be opened due to a 16-inch steel line replacement
project and excavation being in close proximity to their main
service line. The interconnection is planned to be “open” for
approximately two weeks; however, no flow has been used yet. It
will be opened as a precaution in the event SWA’s primary supplies
aren’t enough while they replace a water main.
On December 4, the Water Systems Supervisor met with the City of
San Diego representatives to obtain and compare the recycled
inflows meter reads with Otay Water District reads to reconcile and
note variances for the month of November 2017. The variance was due
to the City’s meter read being estimated due to access issues. The
issue has been resolved and both agengies are monitoring.
10
On December 5, Flow Control Facility (FCF) 14 was dropped to zero
flow at the request of Helix Water District for Treatment Plant
maintenance. Regular flow at FCF 14 was available on Thursday
December 7 for the 8:00am flow change.
The Treatment Plant’s Discharge Permit requires Methylene Blue
Active Substances (MBAS) to be tested monthly. The MBAS test
quantifies the anionic surfactants (detergents from household and
industrial laundering and other cleansing operations) present in
the Effluent. The daily limitation is 0.7 ppm and the running
annual average limitation is 0.3 ppm. The Treatment Plant does not
possess practices that adequately deal with this type of waste if
they are higher than normal (<0.2 ppm), so excess surfactants would
pass thru the plant. We have been seeing the MBAS levels rising for
the last couple of months, with a reading of 0.53 ppm that was
taken on January 9, 2018. These increasing levels, if they
continue, will eventually lead to Otay Water District violating the
annual average limitation of 0.3 ppm on the Waste Discharge Permit.
The Treatment Plant Supervisor has requested to look into what
needs to be done to the process to remove these more effectively.
Purchases and Change Orders:
The following table summarizes purchases and Change Orders issued
during the period of December 20, 2017 through January 18, 2018
that were within staff signatory authority:
Date
Action
Amount
Contractor/
Consultant Project
12/20/17 P.O. $32,429.00 Utility Services
Assoc., LLC Leak Detection
01/18/18 P.O. $16,398.67 Watchlight 624-2 Reservoir
(P2493)
01/18/18 P.O. $13,479.53 Pipeline Products,
Inc. (P2623)
11
Water Conservation and Sales:
Water Conservation – Due to higher than normal temperatures and
little rainfall, December 2017 usage was 12% higher than December
2013. Since December 2016, customers have saved an average of 12%
over 2013 levels.
The December potable water purchases were 2,333.9 acre-feet which
is 24.3% above the budget of 1,877.2 acre-feet. The cumulative
purchases through December were 16,132.3 acre-feet which is 8.7%
above the cumulative budget of 14,838.0 acre-feet.
T
h
e
12
December recycled water purchases and production were 309.5 acre-
feet which is 39.0% above the budget of 222.6 acre-feet. The
cumulative production and purchases through December were 2,502.1
acre-feet which is 7.6% above the cumulative budget of 2,326.2
acre-feet.
Potable, Recycled, and Sewer (Reporting up to the month of December):
Total number of potable water meters: 49,751.
Recycled water consumption for the month of December:
o Total consumption: 308.6 acre-feet or 100,524,468 gallons.
o Average daily consumption: 3,342,725 gallons per day.
o Total cumulative recycled water consumption since July 1, 2017:
2,571.5 acre-feet.
o Total number of recycled water meters: 721.
Wastewater flows for the month of December:
o Total basin flow: 1,531,142 gallons per day.
This is a decrease of 1.47% from December 2016.
o Spring Valley Sanitation District Flow to Metro: 505,845 gallons
per day.
o Total Otay flow: 1,025,258 gallons per day.
o Flow Processed at the Ralph W. Chapman Water Recycling Facility:
449,710 gallons per day.
o Flow to Metro from Otay Water District: 575,561 gallons per day.
13
By the end of December there were 6,109 wastewater EDUs.
December flows were low due to process upset causing poor effluent
quality.
Attachment: Location Map of Trails including Habitat Management Area
(HMA)
FIGURE 1
Potential Trails on
Otay Water District Land
M:\JOBS5\8212\common_gis\fig1_Potential_Alignments_OWD.mxd 11/21/2017 fmm
Image source: NAIP (flown April 2016)
Existing Trails
Potential SDNWR Draft CCP Trails
Potential Trails for Trail Alignment Study
Mother Miguel/Rockhouse Connector
Rolling Hills Ranch Connector Pathway
SDNWR Connector Trail
Conserved Lands
San Diego National Wildlife Refuge
San Miguel HMA
0 1,000Feet [
Check Total
8,774.62
5,200.82
4,381.00
CM201775 12/07/17 MGMT/INSP (11/1/17-11/30/17)1,760.00
CM201774 12/07/17 MGMT/INSP (11/1/17-11/30/17)4,160.00
CM201769 12/07/17 MGMT/INSP (11/1/17-11/3017)2,550.00
177.59
2049548 01/03/18 14462 ALYSON CONSULTING CM201773 12/07/17 MGMT/INSP (11/1/17-11/30/17)4,555.00
147.98 147.98
2049547 01/03/18 18522 ALLICIA EDMONSON 5328010218 01/02/18 CUSTOMER REFUND 177.59
UTILITY LOCATING SVCS (11/1/17-11/30/17)13,946.00 13,946.00
2049625 01/17/18 06261 ALCANTARA, CYNTHIA 011118 01/16/18 TRAVEL EXPENSE (1/11/18)
2049546 01/03/18 15024 AIRX UTILITY SURVEYORS INC 2311302017 12/12/17
131520234 12/08/17 AQUA AMMONIA 1,494.00
131520236 12/08/17 AQUA AMMONIA 294.00
1,072.20 1,072.20
2049545 01/03/18 07732 AIRGAS SPECIALTY PRODUCTS INC 131520235 12/08/17 AQUA AMMONIA 2,593.00
SHAREPOINT SERVICES (11/8/17-11/30/17)1,650.00 1,650.00
2049671 01/24/18 18122 ACC BUSINESS 173492546 12/27/17 INTERNET CIRCUITS
1018992 12/28/17 SODIUM HYPOCHLORITE 446.61
2049544 01/03/18 08488 ABLEFORCE INC 7734 12/05/17
1018800 12/21/17 SODIUM HYPOCHLORITE 528.24
1018993 12/28/17 SODIUM HYPOCHLORITE 480.22
1018906 12/26/17 SODIUM HYPOCHLORITE 960.45
1018991 12/28/17 SODIUM HYPOCHLORITE 768.36
SODIUM HYPOCHLORITE 1,056.49
1018907 12/26/17 SODIUM HYPOCHLORITE 960.45
2049624 01/17/18 01910 ABCANA INDUSTRIES INC 1018801 12/21/17
1018340 12/08/17 SODIUM HYPOCHLORITE 502.31
1018553 12/14/17 SODIUM HYPOCHLORITE 432.20
1018418 12/11/17 SODIUM HYPOCHLORITE 607.00
1018554 12/14/17 SODIUM HYPOCHLORITE 537.85
1018339 12/08/17 SODIUM HYPOCHLORITE 796.21
1018656 12/18/17 SODIUM HYPOCHLORITE 678.07
1018341 12/08/17 SODIUM HYPOCHLORITE 846.15
1018555 12/14/17 SODIUM HYPOCHLORITE 816.38
1,688.46
1018456 12/12/17 SODIUM HYPOCHLORITE 960.45
1018417 12/11/17 SODIUM HYPOCHLORITE 909.54
WALKWAY REPLACEMENT 8,100.00 8,100.00
2049543 01/03/18 01910 ABCANA INDUSTRIES INC 1018655 12/18/17 SODIUM HYPOCHLORITE
2049623 01/17/18 16216 A & F LANDSCAPE & CONCRETE 2064 01/05/18
266.90
2049670 01/24/18 18088 8X8 INC 2111270 01/01/18 TELECOM SYSTEM 5,712.78 5,712.78
Amount
2049542 01/03/18 18088 8X8 INC 2100747 12/06/17 TELECOM SYSTEM 266.90
CHECK REGISTER
Otay Water District
Date Range: 12/21/2017 - 1/24/2018
Check #Date Vendor Vendor Name Invoice Inv. Date Description
Page 1 of 9
Check Total Amount
CHECK REGISTER
Otay Water District
Date Range: 12/21/2017 - 1/24/2018
Check #Date Vendor Vendor Name Invoice Inv. Date Description
13,885.00
93989 12/31/17 BACTERIOLOGICAL TEST (12/11/17-12/12/17)604.00
93988 12/31/17 BACTERIOLOGICAL TEST (12/11/17-12/12/17)528.00
978.00
93990 12/31/17 BACTERIOLOGICAL TEST (12/18/17-12/19/17)784.00
93992 12/31/17 BACTERIOLOGICAL TEST (12/20/17-12/21/17)683.00
WATER CONSERVATION - FIELD TRIPS 645.02 645.02
2049631 01/17/18 04119 CLARKSON LAB & SUPPLY INC 93986 12/31/17 BACTERIOLOGICAL TEST (11/29/17-12/3/17)
2049597 01/10/18 02026 CHULA VISTA ELEM SCHOOL DIST 123117328 12/31/17
207.28
2049630 01/17/18 13390 CHRISTENSEN, MICHAEL MC011118 01/11/18 TRAVEL ADVANCEMENT (1/22/18 - 1/26/18)243.00 243.00
42,370.00 42,370.00
2049629 01/17/18 17487 CHEN, STEPHANIE 010818011118 01/16/18 TRAVEL EXPENSE (1/8/18-1/11/18)207.28
CONST FOR 870-2 PS (11/1/17-11/30/17)24,089.75 24,089.75
2049555 01/03/18 17466 CHARLES KING COMPANY 711302017 12/11/17 14-INCH FORCE MAIN (ENDING 11/30/17)
2049554 01/03/18 15177 CAROLLO ENGINEERS INC 0163037 12/12/17
80.00
2049553 01/03/18 18535 CANDEICE EDEL Ref002495595 01/02/18 UB Refund Cst #0000239465 45.89 45.89
6,842.00 6,842.00
2049628 01/17/18 01243 CALIFORNIA-NEVADA SECTION 00832011118 01/11/18 CERTIFICATE RENEWAL 80.00
RETENTION/TC CONST (ENDING 11/30/17)15,659.38 15,659.38
2049596 01/10/18 00557 CALIFORNIA SPECIAL DISTRICTS 1162017606 11/06/17 MEMBERSHIP RENEWAL - CSDA
2049552 01/03/18 08490 CALIFORNIA BANK & TRUST 211302017 12/18/17
99.13
2049594 01/10/18 18560 CA DEPT OF TAX & FEE ADMIN 2133010218 01/08/18 UNDERGROUND STORAGE TANK FEE (2017)1,097.88 1,097.88
2,255.00 2,255.00
2049595 01/10/18 18560 CA DEPT OF TAX & FEE ADMIN 5506010918 01/09/18 DIESEL FUEL TAX RET (OCT-DEC 2017)99.13
978-1 & 850-2 RESERVOIRS (ENDING 11/30/17)50,253.10 50,253.10
2049593 01/10/18 08156 BROWNSTEIN HYATT FARBER 703088 12/13/17 LEGISLATIVE ADVOCACY (NOV 2017)
2049551 01/03/18 12577 BLASTCO INC 1311302017 12/12/17
5,128.90
2049592 01/10/18 18556 BENJAMIN TUMALAD Ref002497332 01/08/18 UB Refund Cst #0000163310 73.58 73.58
4,200.94 4,200.94
2049627 01/17/18 11519 BACKFLOW APPARATUS & VALVE CO 835117 12/27/17 TEMP BACKFLOWS 5,128.90
LEGAL SERVICES (THRU 11/30/17)29,928.95 29,928.95
2049674 01/24/18 07785 AT&T 000010632604 12/12/17 TELEPHONE SERVICES (11/12/17-12/11/17)
2049673 01/24/18 17264 ARTIANO SHINOFF 300010 01/09/18
43.89
2049626 01/17/18 08967 ANTHEM EAP 76405 12/28/17 EMPLOYEE ASSIST PROG (JAN-MAR 2018)923.22 923.22
165.39 165.39
2049550 01/03/18 18526 ANNE GARBER Ref002495586 01/02/18 UB Refund Cst #0000018421 43.89
UB Refund Cst #0000232241 149.30 149.30
2049672 01/24/18 18564 AMA DEVELOPMENT Ref002497509 01/22/18 UB Refund Cst #0000038942
2049549 01/03/18 18534 ALYSSA CRUZ Ref002495594 01/02/18
CM201771 12/07/17 MGMT/INSP (11/1/17-11/30/17)150.00
CM201772 12/07/17 MGMT/INSP (11/1/17-11/30/17)110.00
CM201770 12/07/17 MGMT/INSP (11/1/17-11/30/17)600.00
Page 2 of 9
Check Total Amount
CHECK REGISTER
Otay Water District
Date Range: 12/21/2017 - 1/24/2018
Check #Date Vendor Vendor Name Invoice Inv. Date Description
5,885.00
3,449.00
35,608.00
38,853.01
918.00
8,544.25
30.00
2049559 01/03/18 04443 CSI SERVICES INC 7885 12/05/17 COATING INSPECTION (10/30/17-11/22/17)19,211.25 19,211.25
29.64 29.64
2049676 01/24/18 00693 CSDA, SAN DIEGO CHAPTER 11162017 11/16/17 BUSINESS MEETING 30.00
TELECOM SVCS / METRO-E (12/28/17-01/27/18)133.74 133.74
2049599 01/10/18 18557 CRYSTAL ANDERSON Ref002497333 01/08/18 UB Refund Cst #0000195464
2049634 01/17/18 17770 COX BUSINESS 0301122917 12/29/17
8,276.77
9601122617 12/26/17 TELECOM SVCS / METRO-E (12/25/17-1/24/18)133.74
6701121517 12/15/17 TELECOM SVCS / METRO-E (12/14/17-1/13/18)133.74
TELECOM SVCS / METRO-E (12/12/17-1/11/18)240.72 240.72
2049598 01/10/18 17770 COX BUSINESS 6702122417 12/24/17 TELECOM SVCS / METRO-E (12/24/17-1/23/18)
2003193E602141217 01/04/18 SHUT DOWN TEST (12/12/17)153.00
2049558 01/03/18 17770 COX BUSINESS 6801121317 12/13/17
306.00
2003193E602201217 01/04/18 SHUT DOWN TEST (12/12/17)306.00
2003193E602361217 01/04/18 SHUT DOWN TEST (12/12/17)153.00
EXCAVATION PERMITS (NOV 2017)11,838.00 11,838.00
2049675 01/24/18 00184 COUNTY OF SAN DIEGO 2003193E602401217 01/04/18 SHUT DOWN TEST (12/12/17)
2049557 01/03/18 00099 COUNTY OF SAN DIEGO DPWAROTAYMWD111712/11/17
INVENTORY 33,143.90
I214323 12/19/17 ZINC ANODE 5,709.11
2049633 01/17/18 18331 CORE & MAIN LP H927454 11/22/17
18,244.00
2182 12/08/17 REGISTER REPLACEMENT (12/4/17-12/8/17)13,128.00
2189 12/15/17 REGISTER REPLACEMENT (12/11/17-12/16/17)4,236.00
REGISTER REPLACEMENT (12/18/17-12/22/17)5,840.00 5,840.00
2049556 01/03/18 17923 CONCORD UTILITY SERVICES 2175 12/01/17 REGISTER REPLACEMENT (11/27/17-12/1/17)
2049632 01/17/18 17923 CONCORD UTILITY SERVICES 2191 12/22/17
93696 11/30/17 BACTERIOLOGICAL TEST (11/17/17-11/18/17)543.00
93698 11/30/17 BACTERIOLOGICAL TEST (11/21/17)178.00
93695 11/30/17 BACTERIOLOGICAL TEST (11/17/17-11/18/17)619.00
93693 11/30/17 BACTERIOLOGICAL TEST (11/13/17-11/14/17)604.00
BACTERIOLOGICAL TEST (11/17/17-11/19/17)873.00
93694 11/30/17 BACTERIOLOGICAL TEST (11/16/17-11/17/17)632.00
2049524 12/27/17 04119 CLARKSON LAB & SUPPLY INC 93697 11/30/17
93995 12/31/17 BACTERIOLOGICAL TEST (12/26/17)131.00
93996 12/31/17 BACTERIOLOGICAL TEST (12/26/17)131.00
93991 12/31/17 BACTERIOLOGICAL TEST (12/20/17)281.00
93994 12/31/17 BACTERIOLOGICAL TEST (12/21/17)206.00
93997 12/31/17 BACTERIOLOGICAL TEST (12/26/17)355.00
93998 12/31/17 BACTERIOLOGICAL TEST (12/26/17)299.00
93987 12/31/17 BACTERIOLOGICAL TEST (11/29/17-12/2/17)456.00
93993 12/31/17 BACTERIOLOGICAL TEST (12/20/17)449.00
Page 3 of 9
Check Total Amount
CHECK REGISTER
Otay Water District
Date Range: 12/21/2017 - 1/24/2018
Check #Date Vendor Vendor Name Invoice Inv. Date Description
17,741.04
8,722.40 8,722.40
2049643 01/17/18 15622 ICF JONES & STOKES INC 0127054 12/19/17 ENVIRONMENTAL SVCS (10/27/17-11/24/17)7,633.59
UB Refund Cst #0000194208 133.20 133.20
2049566 01/03/18 18518 HOMEFED VILLAGE III LLC 122017 12/28/17 METER REFUND
2049565 01/03/18 18531 HOME OF GUIDING HANDS Ref002495591 01/02/18
1,080.00
2049603 01/10/18 02008 HELIX ENVIRONMNTL PLANNING INC 63618 12/12/17 ENVIRONMENTAL SERVICES (11/1/17-11/30/17)10,648.26 10,648.26
10,077.50 10,077.50
2049642 01/17/18 02008 HELIX ENVIRONMNTL PLANNING INC 63956 12/22/17 AS-NEEDED ENVIRONMNT'L (ENDING 12/17/17)1,080.00
SEWER RATE STUDY (10/29/17-11/25/17)10,265.00 10,265.00
2049641 01/17/18 10973 HDR INC 1200097246 01/01/18 SEWER RATE STUDY (11/26/17-12/30/17)
2049564 01/03/18 10973 HDR INC 1200090317 12/06/17
2,298.44
2049679 01/24/18 18539 HARRY EHRLICH OTAY012017 12/21/17 CONSULTANT SERVICES 2,298.44 2,298.44
288.94 288.94
2049610 01/10/18 18539 HARRY EHRLICH OTAY012017 12/21/17 CONSULTANT SERVICES 2,298.44
LANDSCAPING SERVICES (DEC 2017)8,909.50 8,909.50
2049640 01/17/18 17024 GUIRIBA, DIANNE 01162018DG 01/16/18 TRAVEL REIMBURSEMENT (01/10-01/11)
2049639 01/17/18 12907 GREENRIDGE LANDSCAPE INC 16361 12/20/17
274.46
2049527 12/27/17 18521 GOVINVEST INC 121417 12/14/17 ACTUARIAL SAAS LICENSING 11,800.00 11,800.00
185.11 185.11
2049602 01/10/18 17855 GASTELUM, HECTOR 100417102417 01/03/18 MILEAGE REIMBURSEMENT (OCT 2017)274.46
BI-WEEKLY PAYROLL DEDUCTION 573.96 573.96
2049526 12/27/17 17855 GASTELUM, HECTOR 110117113017 12/19/17 MILEAGE REIMBURSEMENT (NOV 2017)
2049678 01/24/18 14073 GARCIA, LAWRENCE Ben2497551 01/25/18
573.96
2049563 01/03/18 13563 FRIENDS OF THE WATER 420 12/30/17 GARDEN TOURS (DEC 2017)3,040.00 3,040.00
6,843.45 6,843.45
2049525 12/27/17 18498 FRANCHISE TAX BOARD Ben2495562 12/28/17 BI-WEEKLY PAYROLL DEDUCTION 573.96
ONLINE DOCUMENTS 99.00 99.00
2049638 01/17/18 01535 FLO-SYSTEMS INC F1670617B267 12/28/17 RECIRCULATION PUMP
2049637 01/17/18 17888 FIRST AMERICAN DATA TREE LLC 9003401217 12/31/17
0619040 12/27/17 INVENTORY 7,253.06
0618988 12/22/17 INVENTORY 1,592.14
535.56 535.56
2049636 01/17/18 03546 FERGUSON WATERWORKS # 1083 0618126 12/19/17 INVENTORY 8,895.84
UB Refund Cst #0000240462 43.53 43.53
2049562 01/03/18 18532 ERIC STIGALL Ref002495592 01/02/18 UB Refund Cst #0000216366
2049561 01/03/18 18537 ERIC GASSAWAY Ref002495597 01/02/18
145.00
2049560 01/03/18 18523 EDWARD BOJORQUEZ 9918010218 01/02/18 CUSTOMER REFUND 193.24 193.24
169.99 169.99
2049601 01/10/18 05134 DYCHITAN, MARISSA 12272017MD 01/04/18 TUITION REIMBURSEMENT 145.00
VEGETATION PRUNING 1,552.00 1,552.00
2049600 01/10/18 18553 DENNIS BANDY Ref002497328 01/08/18 UB Refund Cst #0000028859
2049677 01/24/18 15898 D & D WILDLIFE HABITAT 54491 01/12/18
Page 4 of 9
Check Total Amount
CHECK REGISTER
Otay Water District
Date Range: 12/21/2017 - 1/24/2018
Check #Date Vendor Vendor Name Invoice Inv. Date Description
8,933.59
13,840.76
2,368.42
20.50 20.50
2049651 01/17/18 16898 NATIONAL METER & AUTOMATION S1092930001 12/28/17 CELL UNITS 2,368.42
REMARKETING FEE (10/1/17-12/31/17)1,712.05 1,712.05
2049682 01/24/18 18569 NATHAN SANDERS Ref002497514 01/22/18 UB Refund Cst #0000241522
2049608 01/10/18 17818 MUFG SECURITIES AMERICAS INC 0102180016 01/02/18
6,272.30
2049607 01/10/18 18559 MIGUEL ANGEL ORTIZ Ref002497335 01/08/18 UB Refund Cst #0000233482 60.37 60.37
10.68 10.68
2049650 01/17/18 18208 MICRO MOTION INC 40456042 12/19/17 MAG METERS 6,272.30
TEMP METERS 8,163.40 8,163.40
2049681 01/24/18 18567 MEGAN DIBIASE Ref002497512 01/22/18 UB Refund Cst #0000225821
2049573 01/03/18 06648 MEASUREMENT CONTROL 197639 12/18/17
40.79
2049530 12/27/17 06648 MEASUREMENT CONTROL 197222 11/30/17 TEMP METERS 6,482.75 6,482.75
246.75 246.75
2049572 01/03/18 18525 MARTHA SCOTT Ref002495585 01/02/18 UB Refund Cst #0000018236 40.79
UB Refund Cst #0000072588 55.00 55.00
2049571 01/03/18 18529 MARK EAKER Ref002495589 01/02/18 UB Refund Cst #0000126621
2049606 01/10/18 18500 LOURDES RONQUILLO Ref002497329 01/08/18
8,594.00
2049649 01/17/18 03336 KREINBRING, THERESA 01162018TK 01/16/18 TRAVEL REIMBURSEMENT (1/9/18-1/10/18)217.52 217.52
27,450.25 27,450.25
2049648 01/17/18 05840 KIRK PAVING INC 6677 12/22/17 PAVING SERVICES 8,594.00
PAVING SERVICES 7,768.00 7,768.00
2049647 01/17/18 05840 KIRK PAVING INC 6673 12/22/17 PAVING SERVICES
2049570 01/03/18 05840 KIRK PAVING INC 6671 12/15/17
1,925.00
2049569 01/03/18 18536 JOHN WHEELER Ref002495596 01/02/18 UB Refund Cst #0000240236 12.67 12.67
1,837.80 1,837.80
2049529 12/27/17 18513 JN TRANSPORT 1327 12/18/17 CONTRACT TRUCKING 1,925.00
CHLORINE GAS 1,225.20 1,225.20
2049568 01/03/18 10563 JCI JONES CHEMICALS INC 742552 12/06/17 CHLORINE GAS
2049646 01/17/18 10563 JCI JONES CHEMICALS INC 743688 12/21/17
21.56
2049605 01/10/18 18558 JANELLE SCHMIDT Ref002497334 01/08/18 UB Refund Cst #0000204268 15.27 15.27
1,673.00 1,673.00
2049680 01/24/18 18565 JAMES MCCOY Ref002497510 01/22/18 UB Refund Cst #0000194400 21.56
RETAINAGE RELEASE 16,673.35 16,673.35
2049604 01/10/18 17106 IWG TOWERS ASSETS II LLC 430955 01/01/18 ANTENNA SUBLEASE (JAN 2018)
130741 12/29/17 BILL PROCESSING SVCS (DEC 2017)3,689.91
2049528 12/27/17 17988 INSITUFORM TECHNOLOGIES LLC 00017521 11/21/17
704.58 704.58
2049645 01/17/18 08969 INFOSEND INC 130742 12/29/17 BILL PROCESSING SVCS (DEC 2017)10,150.85
UB Refund Cst #0000186885 45.44 45.44
2049644 01/17/18 17816 INDUSTRIAL SCIENTIFIC CORP 2059198 12/31/17 GAS DETECTION PROGRAM (DEC 2017)
0126947 12/15/17 ENVIRONMENTAL SVCS (10/28/17-11/24/17)1,300.00
2049567 01/03/18 18530 ILHAM GUEMRADI Ref002495590 01/02/18
Page 5 of 9
Check Total Amount
CHECK REGISTER
Otay Water District
Date Range: 12/21/2017 - 1/24/2018
Check #Date Vendor Vendor Name Invoice Inv. Date Description
8,240.50
44,778.18
34,724.04
UTILITY EXPENSES (MONTHLY)73,564.54204961101/10/18 00121 SAN DIEGO GAS & ELECTRIC 122617 12/26/17
UTILITY EXPENSES (MONTHLY)27,286.25
010318a 01/03/18 UTILITY EXPENSES (MONTHLY)7,437.79
2049657 01/17/18 00121 SAN DIEGO GAS & ELECTRIC 122117a 12/21/17
122117 12/21/17 UTILITY EXPENSES (MONTHLY)9,965.30
122017 12/20/17 UTILITY EXPENSES (MONTHLY)602.81
1,010.00 1,010.00
2049583 01/03/18 00121 SAN DIEGO GAS & ELECTRIC 121817 12/18/17 UTILITY EXPENSES (MONTHLY)34,210.07
WATER QUALITY CERTIFICATION 1,570.35 1,570.35
2049656 01/17/18 00003 SAN DIEGO COUNTY WATER AUTH 0000001612 12/21/17 WATERSMART PROGRAM
2049582 01/03/18 00003 SAN DIEGO COUNTY WATER AUTH 0000001603 12/05/17
1,500.00
2049655 01/17/18 02586 SAN DIEGO COUNTY ASSESSOR 201800007 01/02/18 ASSESSOR DATA (DEC 2017)125.00 125.00
47.60 47.60
2049534 12/27/17 02620 ROTORK CONTROLS INC CI15322 11/29/17 ACTUATOR FOR 624 1,500.00
CAMPO ROAD SUPP SVCS (10/28/17-11/24/17)1,399.24 1,399.24
2049685 01/24/18 18563 ROBERT DAVIS Ref002497508 01/22/18 UB Refund Cst #0000005434
0058503 12/12/17 TRAFFIC ENG SERVICES (9/30/17-10/27/17)1,880.50
2049581 01/03/18 08972 RICK ENGINEERING COMPANY 0052522 12/14/17
3,900.00 3,900.00
2049654 01/17/18 08972 RICK ENGINEERING COMPANY 17829D6 12/27/17 DESIGN SERVICES (10/28/17-11/24/17)6,360.00
LIFE INSURANCE PREMIUM 6,987.50 6,987.50
2049580 01/03/18 15647 RFYEAGER ENGINEERING LLC 17196 12/07/17 CORROSION SERVICES (11/1/17-11/30/17)
2049533 12/27/17 07860 PROTECTIVE LIFE INSURANCE CO 02788121117 12/21/17
1,654.96
2049684 01/24/18 07860 PROTECTIVE LIFE INSURANCE CO B00800709 01/08/18 LIFE INSURANCE 2,026.44 2,026.44
38.14 38.14
2049653 01/17/18 01715 PORRAS, PEDRO 022018022318 01/16/18 TRAVEL EXPENSE (2/20/18-2/23/18)1,654.96
UB Refund Cst #0000010781 14.32 14.32
2049579 01/03/18 18527 PETER BREWER Ref002495587 01/02/18 UB Refund Cst #0000019420
2049578 01/03/18 18524 PATRICK MURPHY Ref002495584 01/02/18
2,564.02
2049577 01/03/18 18528 PAT WECKERLY Ref002495588 01/02/18 UB Refund Cst #0000089404 35.48 35.48
579.89 579.89
2049576 01/03/18 01002 PACIFIC PIPELINE SUPPLY INC 318787 12/14/17 INVENTORY 2,564.02
UB Refund Cst #0000222586 31.89 31.89
2049575 01/03/18 18538 OTAY RANCH THREE COMMUNITY ASS Ref002495598 01/02/18 UB Refund Cst #0000241757
2049574 01/03/18 18533 OTAY MESA INDUSTRIAL, LLC Ref002495593 01/02/18
6,867.50
2049532 12/27/17 03215 O'DONNELL, MICHAEL 12182017MO 12/21/17 TUITION REIMBURSEMENT 795.00 795.00
13,759.12 13,759.12
2049652 01/17/18 18332 NV5 INC 79003 12/21/17 ENGINEERING DESIGN (11/1/17-11/30/17)6,867.50
BI-WEEKLY DEFERRED COMP PLAN 9,182.12 9,182.12
2049683 01/24/18 16255 NATIONWIDE RETIREMENT Ben2497541 01/25/18 BI-WEEKLY DEFERRED COMP PLAN
2049531 12/27/17 16255 NATIONWIDE RETIREMENT Ben2495550 12/28/17
2049609 01/10/18 16255 NATIONWIDE RETIREMENT Ben2497395 01/11/18 BI-WEEKLY DEFERRED COMP PLAN 13,759.12 13,759.12
Page 6 of 9
Check Total Amount
CHECK REGISTER
Otay Water District
Date Range: 12/21/2017 - 1/24/2018
Check #Date Vendor Vendor Name Invoice Inv. Date Description
96,056.73
14,560.52
6,053.00
1,271.84
97.37
55188 11/21/17 PORT. TOILET RENTAL (11/21/17-12/18/17)79.18
55183 11/21/17 PORT. TOILET RENTAL (11/21/17-12/18/17)79.18
UNDERGROUND ALERTS 420.85 420.85
2049617 01/10/18 15675 UNITED SITE SERVICES INC 55187 11/21/17 PORT. TOILET RENTAL (11/21/17-12/18/17)
2049662 01/17/18 00427 UNDERGROUND SERVICE ALERT OF 1220170495 01/01/18
SHORING RENTALS 679.53
1601933 12/14/17 SHORING RENTALS 592.31
12/26/17 MILEAGE REIMBURSEMENT (DEC 2017)11.77 11.77
2049616 01/10/18 14641 TREBOR SHORING RENTALS 1601923 12/14/17
3,778.00
0135837 12/31/17 ACTUARIAL SERVICES (DEC 2017)2,275.00
2049615 01/10/18 14177 THOMPSON, MITCHELL 120117123117
HILLSDALE RD PROJECTS (ENDING 11/30/17)297,528.29 297,528.29
2049688 01/24/18 18064 THE HOWARD E NYHART CO INC 0135837a 12/31/17 BENEFIT STUDY (DEC 2017)
11/30/17 JANITORIAL SERVICES (NOV 2017)4,780.00 4,780.00
2049586 01/03/18 01834 TC CONSTRUCTION CO INC 211302017 12/18/17
8,862.79
445943 12/19/17 DIESEL FUEL 5,697.73
2049585 01/03/18 17704 T&T JANITORIAL INC 20174283
MONTHLY CONTRIBUTION TO LTD 5,215.66 5,215.66
2049661 01/17/18 10339 SUPREME OIL COMPANY 446103 12/19/17 UNLEADED FUEL
2049538 12/27/17 15974 SUN LIFE FINANCIAL Ben2495548 12/28/17
20.00
2049687 01/24/18 15974 SUN LIFE FINANCIAL Ben2497539 01/25/18 MONTHLY CONTRIBUTION TO LTD 4,782.41 4,782.41
70.00 70.00
2049584 01/03/18 18520 STEVEN CASTILLO SC122217 12/22/17 FINGERPRINTING REIMBURSEMENT 20.00
CERTIFICATION RENEWAL 105.00 105.00
2049537 12/27/17 05755 STATE WATER RESOURCES 5210122217 12/22/17 CERTIFICATION RENEWAL
2049660 01/17/18 05755 STATE WATER RESOURCES 799201112018 01/11/18
85,454.50
2049614 01/10/18 01460 STATE WATER RESOURCES WD0134258 12/27/17 ANNUAL PERMIT FEES 200.00 200.00
10,288.62 10,288.62
2049659 01/17/18 01460 STATE WATER RESOURCES LW1015648 01/11/18 WATER SYSTEM FEES (7/1/2017-6/30/18)85,454.50
RES COATING & UPGRADES (ENDING 12/31/17)23,715.56 23,715.56
2049536 12/27/17 03071 SOCO GROUP INC, THE 0465322IN 11/29/17 RED DYED DIESEL
2049658 01/17/18 18396 SIMPSON SANDBLASTING & SPECIAL 112312017 12/27/17
167.49
2049686 01/24/18 07783 SCRIPPS CENTER FOR EXECUTIVE 0135837 11/30/17 EXECUTIVE PHYSICAL 2,055.25 2,055.25
61.46 61.46
2049613 01/10/18 18555 SARA MARQUEZ-GONZALEZ Ref002497331 01/08/18 UB Refund Cst #0000159375 167.49
IMAGERY PROJECT 19,806.52 19,806.52
2049612 01/10/18 18554 SARA LOPEZ Ref002497330 01/08/18 UB Refund Cst #0000139486
2049535 12/27/17 17840 SANGIS / COUNTY OF SAN DIEGO SAN628 09/19/17
010318 01/03/18 UTILITY EXPENSES (MONTHLY)4,269.00
121717 12/17/17 UTILITY EXPENSES (MONTHLY)201.58
UTILITY EXPENSES (MONTHLY)73,564.54
122217 12/22/17 UTILITY EXPENSES (MONTHLY)18,021.61
2049611 01/10/18 00121 SAN DIEGO GAS & ELECTRIC 122617 12/26/17
Page 7 of 9
Check Total Amount
CHECK REGISTER
Otay Water District
Date Range: 12/21/2017 - 1/24/2018
Check #Date Vendor Vendor Name Invoice Inv. Date Description
572.45
159,041.10
22,680.00
22,209.49
250.00
279,053.00
2049669 01/17/18 15181 WILLDAN FINANCIAL SERVICES 01036623 12/20/17 ARBITRAGE REBATE SVCS 1,250.00
1,663.77 1,663.77
2049591 01/03/18 18101 WIER CONSTRUCTION CORP 511302017 12/11/17 SEWER REPLACEMENT (11/1/17-11/30/17)279,053.00
RETENTION/WEIR CONST (11/1/17-11/30/17)14,687.00 14,687.00
2049691 01/24/18 18570 WHALEN LLC Ref002497515 01/22/18 UB Refund Cst #0000242044
119016 12/04/17 BEE REMOVAL 125.00
2049590 01/03/18 18173 WESTERN ALLIANCE BANK 511302017 12/11/17
208.12
2049668 01/17/18 01343 WE GOT YA PEST CONTROL INC 118607 11/16/17 BEE REMOVAL 125.00
1,402.50 1,402.50
2049622 01/10/18 03781 WATTON, MARK 110317112917 01/04/18 MILEAGE REIMBURSEMENT (11/3/17-11/29/17)208.12
GARDEN COSTS (3RD QTR FY 2018)24,112.50 24,112.50
2049667 01/17/18 15726 WATER SYSTEMS CONSULTING INC 2909 12/31/17 HYDRAULIC MODELING (ENDING 12/31/17)
550685 11/17/17 SECURITY SYST UPGRADE 8,822.94
2049589 01/03/18 14879 WATER CONSERVATION GARDEN 1196 12/01/17
7,435.21 7,435.21
2049621 01/10/18 15807 WATCHLIGHT CORPORATION 551083 11/29/17 SECURITY SYST UPGRADE 13,386.55
FLEXIBLE SPENDING ACCT (DEC 2017)386.00 386.00
2049666 01/17/18 15807 WATCHLIGHT CORPORATION 554161 12/05/17 EQUIPMENT INSTALLATION
2049665 01/17/18 10340 WAGEWORKS INC INV446399 12/26/17
54,000.00
2049620 01/10/18 12686 VANTAGEPOINT TRANSFER AGENTS Ben2497405 01/11/18 401A TERMINAL PAY 24,743.04 24,743.04
12,701.11 12,701.11
2049541 12/27/17 12686 VANTAGEPOINT TRANSFER AGENTS Ben2495560 12/28/17 401A TERMINAL PAY 54,000.00
BI-WEEKLY 401A PLAN 993.13 993.13
2049690 01/24/18 06414 VANTAGEPOINT TRANSFER AGENTS Ben2497547 01/25/18 BI-WEEKLY 401A PLAN
2049540 12/27/17 06414 VANTAGEPOINT TRANSFER AGENTS Ben2495558 12/28/17
15,094.00
2049619 01/10/18 06414 VANTAGEPOINT TRANSFER AGENTS Ben2497401 01/11/18 BI-WEEKLY 401A PLAN 12,726.33 12,726.33
15,076.80 15,076.80
2049689 01/24/18 01095 VANTAGEPOINT TRANSFER AGENTS Ben2497549 01/25/18 BI-WEEKLY DEFERRED COMP PLAN 15,094.00
BI-WEEKLY DEFERRED COMP PLAN 14,211.68 14,211.68
2049618 01/10/18 01095 VANTAGEPOINT TRANSFER AGENTS Ben2497403 01/11/18 BI-WEEKLY DEFERRED COMP PLAN
2049539 12/27/17 01095 VANTAGEPOINT TRANSFER AGENTS Ben2495556 12/28/17
MGMT/INSP (12/1/17-12/31/17)20,040.00
SD23603 01/01/18 MGMT/INSP (12/1/17-12/31/17)2,640.00
2049664 01/17/18 08028 VALLEY CONSTRUCTION MANAGEMENT SD177607 01/01/18
2049663 01/17/18 06829 US SECURITY ASSOCIATES INC 2003957 12/28/17 PATROLLING SERVICES (DEC 2017)110.00 110.00
CAL CARD EXPENSES (MONTHLY)159,041.10204958801/03/18 07674 US BANK CC20171222261 12/22/17
55184 11/21/17 PORT. TOILET RENTAL (11/21/17-12/18/17)79.18
55182 11/21/17 PORT. TOILET RENTAL (11/21/17-12/18/17)79.18
55186 11/21/17 PORT. TOILET RENTAL (11/21/17-12/18/17)79.18
55185 11/21/17 PORT. TOILET RENTAL (11/21/17-12/18/17)79.18
Page 8 of 9
Check Total Amount
CHECK REGISTER
Otay Water District
Date Range: 12/21/2017 - 1/24/2018
Check #Date Vendor Vendor Name Invoice Inv. Date Description
2,500.00
COLOCATION SERVICES 2,117.20 2,117.20
Amount Pd Total:2,011,155.78
Check Grand Total:2,011,155.78
2049695 01/24/18 18215 ZAYO GROUP LLC 4566010118 01/01/18
795.00
UB Refund Cst #0000195767 73.58 73.58204969401/24/18 18566 Y H F COMPANY LLC Ref002497511 01/22/18
795.00 795.00
2049693 01/24/18 08023 WORKTERRA 0085901IN 01/01/18 EMPLOYEE BENEFITS (DEC 2017)795.00
UB Refund Cst #0000230557 41.81 41.81
2049635 01/17/18 08023 WORKTERRA 0085220IN 11/30/17 EMPLOYEE BENEFITS (NOV 2017)
01036620 12/20/17 ARBITRAGE REBATE SVCS 1,250.00
2049692 01/24/18 18568 WILLIAM BEVERLY Ref002497513 01/22/18
Page 9 of 9