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HomeMy WebLinkAbout01-04-17 Board Packet 1 OTAY WATER DISTRICT BOARD OF DIRECTORS MEETING DISTRICT BOARDROOM 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA WEDNESDAY January 4, 2017 3:30 P.M. AGENDA 1. ROLL CALL 2. PLEDGE OF ALLEGIANCE 3. APPROVAL OF AGENDA 4. ADOPT RESOLUTION NO. 4319 COMMENDING JOSE LOPEZ FOR HIS SIX- TEEN YEARS OF DEDICATED SERVICE TO THE OTAY WATER DISTRICT AS DIRECTOR OF DIVISION FOUR 5. PRESENTATION OF PLAQUE TO DEPARTING BOARD MEMBER JOSE LOPEZ RECOGNIZING HIM FOR HIS SERVICE TO THE OTAY WATER DIS- TRICT AS DIRECTOR OF DIVISION FOUR 6. RECESS FOR RECEPTION 7. RECONVENE OTAY WATER DISTRICT BOARD MEETING 8. 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 9. APPROVE THE MINUTES OF THE REGULAR BOARD MEETING OF NOVEM- BER 2, 2016 PUBLIC HEARING 10. PUBLIC HEARING TO CERTIFY THE FINAL PROGRAM ENVIRONMENTAL IMPACT REPORT (PEIR) FOR THE DISTRICT’S 2015 WATER FACILITIES MASTER PLAN (WFMP) 2 THE BOARD WILL BE HOLDING A PUBLIC HEARING TO CONSIDER CERTI- FYING THE FINAL PEIR FOR THE DISTRICT’S 2015 WFMP. THE BOARD IN- VITES THE PUBLIC TO PROVIDE COMMENTS ON THE REPORT. a) CERTIFY THAT THE FINAL PEIR FOR THE DISTRICT’S 2015 WATER FACILITIES MASTER PLAN (WFMP) UPDATE HAS BEEN COMPLETED IN COMPLIANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, THE CURRENT STATE GUIDELINES AND THE DISTRICT’S LO- CAL GUIDELINES, AND THAT IT REFLECTS THE INDEPENDENT JUDGMENT OF THE DISTRICT; FIND THAT THE POTENTIALLY SIG- NIFICANT EFFECTS OF THE DISTRICT’S 2015 WFMP UPDATE WILL BE AVOIDED THROUGH THE ADOPTION OF MITIGATION MEASURES, AS SHOWN IN THE PEIR, AND THE MITIGATION, MONI- TORING AND REPORTING PROGRAM FOR THE PEIR; AND AP- PROVE THE 2015 WFMP AS THE FINAL DOCUMENT (COBURN- BOYD) CONSENT CALENDAR 11. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PARTICULAR ITEM: a) APPROVE CHANGE ORDER NO. 5 TO THE EXISTING CONTRACT WITH TRANSTAR PIPELINE, INC. IN THE AMOUNT OF $61,592.34 FOR THE RANCHO SAN DIEGO BASIN SEWER REHABILITATION - PHASE 1 PROJECT b) ADOPT RESOLUTION NO. 4318, FIXING TERMS AND CONDITIONS FOR THE ANNEXATION OF CERTAIN REAL PROPERTIES OWNED BY R-12 B, LLC Co. (APN 644-310-53-00), OTAY RANCH II SUN 12, LLC CO. (APN 644-310-54-00), AND R-12 A, LLC CO. (APN 644-310-55-00) INTO THE OTAY WATER DISTRICT IMPROVEMENT DISTRICTS 22 AND 27 c) AWARD A PROFESSIONAL AS-NEEDED COATING INSPECTION SER- VICES CONTRACT TO CSI SERVICES, INC. IN AN AMOUNT NOT-TO- EXCEED $175,000 FOR A PERIOD OF THREE (3) FISCAL YEARS (FY 2017 THROUGH FY 2019), ENDING JUNE 30, 2019 d) ADOPT RESOLUTION NO. 4324 TO UPDATE BOARD POLICY #47, POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION AND COMPLAINT PROCEDURE, AND BOARD POLICY #48, ADA/FEHA DISABILITY POLICY ACTION ITEMS 3 12. FINANCE, ADMINISTRATION AND INFORMATION TECHNOLOGY a) APPROVE THE SUBMITTAL OF THE FINANCIAL SECURITY PACKAGE TO THE STATE WATER RESOURCES CONTROL BOARD (SWRCB), CALIFORNIA’S CLEAN WATER STATE REVOLVING FUND PROGRAM, FOR THE PURPOSE OF APPLYING FOR $7,750,000 IN DEBT FINANC- ING OF THE CAMPO ROAD SEWER REPLACEMENT PROJECT; AND ADOPT RESOLUTION NO. 4320 TO FINANCE THE COST OF CON- STRUCTING AND RECONSTRUCTING CERTAIN PUBLIC FACILITIES AND IMPROVEMENTS; RESOLUTION NO. 4321 TO FILE AN APPLICA- TION FOR A FINANCING AGREEMENT FROM THE SWRCB; AND RES- OLUTION NO. 4322 TO PLEDGE SEWER OPERATING REVENUES AND/OR REPLACEMENT RESERVES FOR THE CAMPO ROAD SEWER MAIN REPLACEMENT PROJECT (BELL) b) APPROVE THE CREATION OF AN AUTOMATED METER READING CHANGE OUT CAPITAL IMPROVEMENT PROGRAM PROJECT IN THE AMOUNT OF $1,150,000 FOR THE CURRENT FISCAL YEAR (CAREY) 13. BOARD a) ADOPT RESOLUTION NO. 4325 OF THE BOARD OF DIRECTORS OF OTAY WATER DISTRICT CONSENTING TO AND APPROVING THE AP- POINTMENT OF MARK ROBAK AS A REPRESENTATIVE TO THE BOARD OF DIRECTORS OF THE SAN DIEGO COUNTY WATER AU- THORITY (FIRST SEAT) b) ADOPT RESOLUTION NO. 4326 OF THE BOARD OF DIRECTORS OF OTAY WATER DISTRICT CONSENTING TO AND APPROVING THE AP- POINTMENT OF TIM SMITH AS A REPRESENTATIVE TO THE BOARD OF DIRECTORS OF THE SAN DIEGO COUNTY WATER AUTHORITY (SECOND SEAT) c) DISCUSSION OF THE 2017 BOARD MEETING CALENDAR REPORTS 14. GENERAL MANAGER’S REPORT a) SAN DIEGO COUNTY WATER AUTHORITY UPDATE 15. DIRECTORS' REPORTS/REQUESTS 16. PRESIDENT’S REPORT/REQUESTS RECESS TO CLOSED SESSION 4 17. CLOSED SESSION a) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: 1 CASE b) PUBLIC EMPLOYEE PERFORMANCE EVALUATION: PERIODIC AND CUSTOMARY REVIEW IN DUE COURSE [GOVERNMENT CODE §54957.6] TITLE: GENERAL COUNSEL c) CONFERENCE WITH LABOR NEGOTIATORS [GOVERNMENT CODE §54957.6] AGENCY DESIGNATED REPRESENTATIVES: BOARD AD HOC COM- MITTEE MEMBERS EMPLOYEE ORGANIZATION: OTAY WATER DISTRICT EMPLOYEES’ ASSOCIATION AND ALL REPRESENTED AND UNREPRESENTED PERSONNEL INCLUD- ING MANAGEMENT AND CONFIDENTIAL EMPLOYEES RETURN TO OPEN SESSION 18. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION 19. ADJOURNMENT 5 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 participate 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 December 30, 2016, I posted a copy of the foregoing agenda near the regular meeting place of the Board of Directors of Otay Water District, said time being at least 72 hours in advance of the regular meeting of the Board of Directors (Government Code Section §54954.2). Executed at Spring Valley, California on December 30, 2016. /s/ Susan Cruz, District Secretary 1 RESOLUTION NO. 4319 COMMENDING JOSE LOPEZ FOR HIS SIXTEEN YEARS OF DEDICATED SERVICE TO THE OTAY WATER DISTRICT AS DIRECTOR OF DIVISION FOUR WHEREAS, Jose Lopez has provided strong, effective and dedicated leadership as a member of the Board of Directors of the Otay Water District since he took office in January 2001; and WHEREAS, having served as president of the Board of Directors in 2002 to 2003, 2005, and 2012 to 2015; vice president from 2006 to 2010, and 2016; and treasurer in 2004, Director Lopez has been an integral part of the innovative and forward looking operational and strategic planning efforts at the District; and WHEREAS, Director Lopez has demonstrated vision, stable and outstanding leadership, professional integrity, along with his genuine dedication to serving the public; and WHEREAS, while on the Board of Directors, he was instrumental in many of the District’s successes as demonstrated by the District’s numerous accolades and awards from entities and agencies such as the Governor of California; the American Society of Civil Engineers; the American Water Works Association; the Association of Public Treasurers of United States and Canada; the California Society of Municipal Finance Officers, the California Special District Association; the Government Finance Officers Association of the U.S. and Canada; and the San Diego Business Journal, among others; and WHEREAS, Director Lopez’ legacy to the customers of the Otay Water District is that he leaves a thriving, responsive, fiscally stable, and respected public agency – one that will serve its customers and the region well for many years to come. NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Otay Water District expresses its sincere appreciation to Jose Lopez for his exemplary leadership, and does hereby commend him for his many years of dedicated service to the District, the community, and all of San Diego County. PASSED AND ADOPTED at the Regular meeting of the Board of Directors of the Otay Water District held this 4th day of January 2017. AYES: NOES: ABSENT: ABSTAIN: 2 ________________________ President ATTEST: _________________________ District Secretary 1 MINUTES OF THE BOARD OF DIRECTORS MEETING OF THE OTAY WATER DISTRICT November 2, 2016 1. The meeting was called to order by Vice President Lopez at 3:34 p.m. 2. ROLL CALL Directors Present: Croucher, Lopez, Robak and Smith Directors Absent: Thompson (out-of-town on vacation) Staff Present: General Manager Mark Watton, General Counsel Daniel Shinoff, Attorney Jeanne Blumenfeld, Asst. General Manager German Alvarez, 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, 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 Croucher and carried with the following vote: Ayes: Directors Croucher, Lopez, Robak and Smith Noes: None Abstain: None Absent: Director Thompson to approve the agenda. 5. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA No one wished to be heard. PUBLIC HEARING 6. PUBLIC HEARING ON THE ACQUISITION BY EMINENT DOMAIN OF CERTAIN REAL PROPERTY INTERESTS ON ASSESSOR PARCEL NUMBERS 506-130-02, 03, AND 04 IN CONNECTION WITH THE CAMPO ROAD SEWER REPLACEMENT PROJECT 2 THE BOARD WILL BE HOLDING A PUBLIC HEARING TO CONSIDER ADOPTING A RESOLUTION OF PUBLIC NECESSITY FOR THE ACQUISITION BY EMINENT DOMAIN OF CERTAIN REAL PROPERTY INTERESTS ON ASSESSOR PARCEL NUMBERS 506-130-02, 03, AND 04 IN CONNECTION WITH THE CAMPO ROAD SEWER REPLACEMENT PROJECT. THE BOARD INVITES THE PUBLIC TO PROVIDE COMMENTS ON THE REPORT. a) ADOPT RESOLUTION NO. 4316, A RESOLUTION OF PUBLIC NECESSITY, AUTHORIZING THE COMMENCEMENT OF EMINENT DOMAIN PROCEEDINGS BY OUTSIDE COUNSEL TO ACQUIRE THE NECESSARY INTERESTS IN REAL PROPERTY FOR THE CAMPO ROAD SEWER REPLACEMENT PROJECT Senior Civil Engineer Steve Beppler indicated that the purpose of this item is to request that the board hold a public hearing and consider adopting a Resolution of Public Necessity for the acquisition by eminent domain of certain real property interests on Assessor Parcel Numbers 506-130-02, 03 and 04 in connection with the Campo Road Sewer Replacement Project. Please reference the Committee Action notes attached to staff’s report (Attachment A) for the details of Mr. Beppler’s report. In response to an inquiry from Director Croucher, staff indicated that the property owner was made aware of the Public Hearing via a certified letter which was signed by the property owner as received on October 12, 2016. Staff also spoke to the property owner by phone. A motion was made by Director Croucher, seconded by Director Smith and carried with the following vote: Ayes: Directors Croucher, Lopez, Robak and Smith Noes: None Abstain: None Absent: Director Thompson to approve staff recommendation. 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: Director Robak pulled items 6a, AWARD A FIVE-YEAR CONTRACT TO GREENRIDGE LANDSCAPE, INC. FOR LANDSCAPE MAINTENANCE SERVICES IN AN AMOUNT NOT-TO-EXCEED $554,380, for discussion. 3 A motion was made by Director Croucher, seconded by Director Smith and carried with the following vote: Ayes: Directors Croucher, Lopez, Robak and Smith Noes: None Abstain: None Absent: Director Thompson to approve the following consent calendar items: b) ADOPT ORDINANCE NO. 559 AMENDING SECTION 60, UTILITY FACILITIES FOR SUBDIVISIONS AND PARCEL MAP DEVELOPMENTS, OF THE DISTRICT’S CODE OF ORDINANCES c) APPROVE THE RENEWAL OF THE MEXICO AGREEMENT TO TRANSFER WATER AND SET THE WHEELING RATE FOR THE DELIVERY OF TREATY WATERS TO MEXICO Vice President Lopez presented item 6a for discussion: a) AWARD A FIVE-YEAR CONTRACT TO GREENRIDGE LANDSCAPE, INC. FOR LANDSCAPE MAINTENANCE SERVICES IN AN AMOUNT NOT-TO-EXCEED $554,380 In response to an inquiry from Director Robak, staff indicated that Greenridge Landscape, Inc. is the District’s current contractor. They have been providing the service for the last five (5) years and have provided excellent services. A motion was made by Director Smith, seconded by Director Croucher and carried with the following vote: Ayes: Directors Croucher, Lopez, Robak and Smith Noes: None Abstain: None Absent: Director Thompson to approve staffs’ recommendation. ACTION ITEMS 8. FINANCE, ADMINISTRATION AND INFORMATION TECHNOLOGY a) APPROVE THE DISTRICT’S AUDITED FINANCIAL STATEMENTS INCLUDING THE INDEPENDENT AUDITOR’S UNQUALIFIED OPINION FOR FISCAL YEAR ENDED JUNE 30, 2016 Senior Accountant Marissa Dychitan indicated that staff is recommending that the board approve the District’s audited financial statements, including the 4 Independent Auditors’ unqualified opinion for the fiscal year ended June 30, 2016. 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. A motion was made by Director Smith, seconded by Vice President Lopez and carried with the following vote: Ayes: Directors Croucher, Lopez, Robak and Smith Noes: None Abstain: None Absent: Director Thompson to approve staff’s recommendation. 9. BOARD a) DISCUSSION OF THE 2016 BOARD MEETING CALENDAR There were no changes to the board meeting calendar. REPORTS 10. GENERAL MANAGER’S REPORT CWA Report Director Croucher indicated that officer elections have occurred at CWA and he has been elected Secretary of CWA’s Board of Directors. He also shared that he has received a 15-year service award from CWA. He noted that the Live Water Smart website has been launched and it has very good information on how to use water as efficiently as possible. He lastly shared that CWA has received several awards and noted they were honored with the top award from the Public Relations Society of America for its public outreach campaign When in Drought. General Manager’s Report General Manager Watton reviewed the handouts provided to members of the board on the dias and presented information from his report which included an update on Certificate of Insurance tracking services, new hires/recruitments, evaluation on mobile devices, meetings with the San Diego County Sanitation District, the Presidential Permit, and water sales and purchases. 11. DIRECTORS' REPORTS/REQUESTS 5 Director Smith reported that he attended the regular committee and board meetings that he attends and apologized that he was not able to attend the employee appreciation luncheon. Director Croucher noted that the State Water Resources Control Board is considering making some of the drought restrictions permanent. CWA is providing feedback and is suggesting that the agencies be allowed to sell water rather than releasing/spilling the water from reservoirs that are full. This would help lower the per unit cost of water and allow agencies to recoup their investments in water supply development and ease cost to their ratepayers. Director Robak indicated that he attended the employee recognition luncheon and enjoyed hearing the accomplishments of the employees. He also shared that he attended the Water Conservation Garden Gala along with Directors Lopez and Thompson and wished them both (Directors Lopez and Thompson) success in next week’s election. 12. VICE PRESIDENT’S REPORT Vice President Lopez presented his report on meetings he attended during the month of October 2016 (his report is attached). President Thompson’s report is attached for his activities during the month of October 2016. 13. CLOSED SESSION The board recessed to closed session at 4:27 p.m. to discuss the following matters: a) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: 1 CASE b) CONFERENCE WITH LEGAL COUNSEL – PENDING LITIGATION [GOVERNMENT CODE §54956.9] BLALOCK vs. OTAY WATER DISTRICT; CASE NO. 37-2016-00013542- CU-OR-CTL The board reconvened at 5:05 p.m. and General Counsel Shinoff reported that the board met in closed session and took no reportable actions. 14. ADJOURNMENT 6 With no further business to come before the Board, Vice President Lopez adjourned the meeting at 5:05 p.m. ___________________________________ President ATTEST: District Secretary 7 Vice President Lopez’ Report November 2, 2016 Board Meeting A) Meetings attended during the Month of October 2016: 1) Oct 1: Board Agenda Briefing. Met with General Manager Watton and General Counsel Dan Shinoff to review items that will be presented at the October 5 Board Meeting. 2) Oct 5: Attended the District’s Regular Board Meeting 3) Oct 6: a. Attended a meeting of the Metro Commission (see attached agenda) b. Attended the South County Economic Development Council’s Elected Officials Reception (Attendees: Directors Robak and Thompson, and General Manager Watton) 4) Oct 12: Attended the District’s Employee Recognition Luncheon a. Attended the District’s Employee Recognition Luncheon b. Committee Agenda Briefing. Met with General Manager Watton to review items that will be presented at the October committee meetings. 5) Oct 15: Attended the Water Conservation Garden’s 3rd Annual Enchanted Garden Gala (Attendees: Directors Croucher and Robak) 6) Oct 18: Attended the District’s Finance, Administration and Communications Committee. Reviewed, discussed, and made recommendation on items that will be presented at the November board meeting. 7) Oct 20: Attended a Special Meeting of the Metro Commission (see attached agenda) 8) Oct 31: Board Agenda Briefing. Met with General Manager Watton and Attorney Jeanne Blumenfeld to review items that will be presented at the November 2 Board Meeting. 8 President’s Report November 2, 2016 Board Meeting B) Meetings attended during the Month of October 2016: 9) Oct 1: Board Agenda Briefing. Met with General Manager Watton and General Counsel Dan Shinoff to review items that will be presented at the October 5 Board Meeting. 10) Oct 4: Water Conservation Garden JPA Board Meeting 11) Oct 5: OWD Regular Board Meeting 12) Oct 6: a. Met with Mexico Consul General Marcela Celorio to review the District’s Otay Mesa Conveyance and Disinfection System Project (Attendees: General Manager Watton and District Consultant Susanna Villegas) b. Attended the South County Economic Development Council’s Elected Officials Reception (Attendees: Directors Lopez and Robak, and General Manager Watton) 13) Oct 12: a. Attended the District’s Employee Recognition Luncheon b. Committee Agenda Briefing. Met with General Manager Watton to review items that will be presented at the October committee meetings. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: January 4, 2017 SUBMITTED BY: Lisa Coburn-Boyd Environmental Compliance Specialist Bob Kennedy Engineering Manager PROJECT: P1210 - 021000 DIV. NO. All APPROVED BY: Rod Posada, Chief, Engineering German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Certification of the 2015 Program Environmental Impact Report for the 2015 Water Facilities Master Plan Update and Approval of the 2015 Water Facilities Master Plan Update as a Final Plan and Document GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District's (District) Board certify that the Final Program Environmental Impact Report (PEIR) for the District’s 2015 Water Facilities Master Plan (WFMP) Update has been completed in compliance with the California Environmental Quality Act, the current State Guidelines and the District’s local Guidelines and that it reflects the independent judgement of the District. In addition, that the Board finds that the potentially significant effects of the District’s 2015 WFMP Update will be avoided through the adoption of mitigation measures shown in the PEIR and the Mitigation, Monitoring, and Reporting Program for the PEIR. Lastly, that the District Board approves the 2015 WFMP as the final document. COMMITTEE ACTION: Please see Attachment A. 2 PURPOSE: To obtain Board certification of the Final PEIR for the Otay Water District’s 2015 WFMP Update, and accept the Final 2015 WFMP Update as the final document. ANALYSIS: In January 2014, the Board awarded a professional engineering planning services agreement to Atkins for the preparation of the 2015 WFMP and PEIR. The 2015 WFMP Update revises the 2009 Water Resources Master Plan (WRMP) and the 2013 Update to the 2009 WRMP to meet projected water market demands within the District’s service area and adjacent areas of influence (WFMP planning area). The 2015 WFMP identifies the necessary potable and recycled water Capital Improvement Program (CIP) facilities and associated probable cost estimates for those facilities and develops a phased approach to implementing the CIP projects. The phases are, Phase II (2017-2022) and Phase III (2023-2050). The CIP projects identified in the 2015 WFMP Update ensure that an adequate, reliable, flexible, and cost effective potable and recycled water delivery system is developed commensurate with growth within the WFMP planning area, consistent with the San Diego Association of Government (SANDAG) forecasts through 2050. Atkins identified four (4) project goals for the WFMP Update. These included updating planning criteria and the District’s hydraulic system model, mapping out the potable and recycled water facility improvements, an update of the CIP, and identifying adaptive responses to changed conditions. The completion of these goals resulted in the final 2015 WFMP Update. Part of the process to finalize the WFMP Update requires addressing the project’s environmental impacts through the preparation of a Program Environmental Impact Report (PEIR). The PEIR provides an overview of the projects identified in the WFMP Update, and their impacts in terms of air quality, biological resources, cultural resources, energy, geology/soils/paleontology, global climate change, hydrology and water quality, landform alteration and visual aesthetics, land use and planning, noise, public safety, and transportation/traffic. Although the PEIR does not eliminate the need for project-specific technical studies and environmental documents, it can reduce the amount of work required for each project in the future. 3 The draft PEIR was submitted for a 45-day public review period on August 3, 2016, and seven comment letters were received from the following entities:  Caltrans  County of San Diego  Jackson Pendo Development Company  Metropolitan Water District of Southern CA  SANDAG  San Diego County Archaeological Society  US Fish & Wildlife Service & CA Dept. of Fish & Wildlife (joint letter) Atkins, in consultation with District staff, has responded to these letters and has incorporated their comments into the PEIR. The letters and responses to comments can be found at the beginning of the Final PEIR, directly after the Table of Contents. Any changes to the draft PEIR are included in the Final PEIR as either strike-out or underline edits within the document. FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide high quality and reliable 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 innovative in providing water services at competitive rates, with a reputation for outstanding customer service." LEGAL IMPACT: No legal impact is anticipated. However, in compliance with the California Environmental Quality Act process, the PEIR will have the normal 30-day legal challenge period once recorded with the County of San Diego. The PEIR will be recorded immediately following Board approval. LC-B/BK P:\WORKING\CIP 00210 WMP & PEIR\Water Resources Master Plan\2015 WFMP PEIR\Staff Reports\BD 01-04-17, Staff Report, WFMP Final PEIR.docx Attachments: Attachment A – Committee Action Attachment B – 2015 WFMP Update Final PEIR, CEQA Findings of Fact, Mitigation Monitoring and Reporting Program (MMRP) Attachment C – 2015 WFMP Update ATTACHMENT A SUBJECT/PROJECT: P1210-021000 Certification of the 2015 Program Environmental Impact Report for the 2015 Water Facilities Master Plan Update and Approval of the 2015 Water Facilities Master Plan Update as a Final Plan and Document COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on December 12, 2016, and the following comments were made:  Staff recommended that the Board certify that the Final Program Environmental Impact Report (PEIR) for the District’s 2015 Water Facilities Master Plan (WFMP) Update has been completed in compliance with the California Environmental Quality Act, the current State Guidelines and the District’s local Guidelines and that it reflects the independent judgement of the District. In addition, that the Board finds that the potentially significant effects of the District’s 2015 WFMP Update will be avoided through the adoption of mitigation measures shown in the PEIR and the Mitigation, Monitoring, and Reporting Program for the PEIR. Lastly, that the District Board approves the 2015 WFMP as the final document.  Staff reviewed the staff report with the Committee indicating that the 2015 WFMP Update revises the 2009 Water Resources Master Plan (WRMP) and the 2013 Update to the 2009 WRMP to meet projected water market demands within the Master Plan planning area which includes the District’s service area and adjacent areas of influence.  In response to several questions from the Committee, staff indicated that the District has a goal to meet the demands during a 10-day interruption of the water supply by a combination of storage and interconnections with adjacent agencies. The north district has two sources of potable water the San Diego County Water Authority (SDCWA) and Helix Water District. The south district only receives water from SDCWA. Unless the District receives advance notice of a planned shutdown from SDCWA, the District keeps reservoir levels at lower levels to maintain good water quality. Building more reservoir storage isn’t helpful.  In response to a question from the Committee, staff stated that the 680 Pump Station (lower pressure zone) may show a deficit in water during peak summer months, but the District has the ability to transfer recycled water from a higher pressure zones to meet demand, if needed.  The Committee inquired about the new category in the 2015 WRMP, a Sub-phase for CIP projects. Staff stated that the Sub-phase to the District’s CIP is a new category to account for the possibility that one or more local water supply projects are not implemented. Failure to implement the new water supply projects would require the District to continue its investment in new water storage projects and smaller‐scale local reliability projects, with neighboring agencies, in order to meet the District’s goals for water supply reliability. It was noted that the Sub-phase for CIP projects will be updated every five years.  In response to a question from the Committee regarding District assets and budgeting, staff stated that the District has an Asset Management Plan for all of its assets. The Plan includes a rehabilitation program for older infrastructures and a GIS Program that monitors data for approximately 100,000 facilities within its jurisdictional boundary. In addition, the District recently invested in additional software tools that will assist in managing long-term capital planning for true forecasting. As for the long-term financing of assets, the District maintains a 6-Year Rate Model annually in anticipation of possible impacts to customers’ rates five to six years out; this ensures that customers don’t experience a spike in their rates. Following the discussion, the committee supported staff’s recommendation and presentation to the full board as a public hearing item. OTAY WATER DISTRICT 2015 Water Facilities Master Plan Update Final Program Environmental Impact Report SCH No. 2015061091 November 2016 Prepared for: Otay Water District 2554 Sweetwater Springs Boulevard Spring Valley, California 91978-2096 Prepared by: 3570 Carmel Mountain Road Suite 300 San Diego, California 92130 Atkins Project #100038569 OTAY WATER DISTRICT 2015 Water Facilities Master Plan Update Prepared for Otay Water District 2554 Sweetwater Springs Boulevard Spring Valley, California 91978--2004 Prepared by 3570 Carmel Mountain Road, Suite 300 San Diego, California 92130 Atkins Proj No: 100038569 March 2016     STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: January 4, 2017 SUBMITTED BY: Dan Martin Engineering Manager PROJECT: S2033-003103 DIV. NO.: 5 APPROVED BY: Rod Posada, Chief, Engineering German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Approve Change Order No. 5 to the Contract with Transtar Pipeline, Inc. for the Rancho San Diego Basin Sewer Rehabilitation - Phase 1 Project GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) approve Change Order No. 5 (CO 05) to the existing contract with Transtar Pipeline, Inc. (Transtar) in the amount of $61,592.34 for the Rancho San Diego Basin Sewer Rehabilitation - Phase 1 Project (see Exhibit A for Project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to execute CO 05 to the construction contract with Transtar for the Rancho San Diego Basin Sewer Rehabilitation - Phase 1 Project. ANALYSIS: At the February 3, 2016 Board Meeting, the Board awarded a construction contract in an amount of $970,970 to Transtar to construct sewer improvements that consist of sewer system repairs at 2 fourteen (14) locations within the Rancho San Diego Basin, as shown on Exhibit A. The sewer improvements involve the replacement of approximately 3,252 linear feet of 8-inch gravity sewer, four (4) new sewer manholes, reconnection of sewer lines and laterals, maintaining sewer service, restoration of pavement and landscaping, removal of trees, traffic control, erosion control, protection of existing utilities, and all testing and inspection as required by the Contract Documents. Since the award of the construction contract, four (4) change orders have been approved that total $81,618.71. The approved change orders compensated the Contractor for the following: a realignment of the planned sewer at Site 734, located off Hillsdale Road (CO 01); a revised sewer profile at Site 722, located at Julianna Street (CO 02); restoration of three (3) County of San Diego survey monuments located within the sewer construction (CO 03); and unanticipated loose and caving soils at Site 733, located on Paseo Grande (CO 04). A listing of the change orders and their respective amounts are included in Attachment B. CO 05 addresses a number of items and will serve to close out the contract with Transtar. These include differing site conditions at Sites 733, 728, and 771; additional paving on the Project; credits associated with unused contract allowance items; and the application of liquidated damages due to late delivery of the Project by the contractor. A brief description of these items are described below:  During the construction of the planned sewer at Sites 773 and 728, the Contractor encountered unconsolidated and caving materials similar to those encountered at Site 733 (Paseo Grande) which was the subject of CO 04. CO 05 is necessary to resolve all costs associated with the additional work needed to address the unforeseen conditions at Sites 733 and 728, including pothole investigation and additional excavation and backfill.  CO 05 compensates the contractor for additional asphalt concrete restoration on the Project. As planned sewer main alignments were revised during construction due to unforeseen subsurface conditions, the existing pavement areas impacted by the contract increased. This resulted in larger areas of asphalt concrete pavement restoration within the public streets and private roads than originally included in the contract.  CO 05 revised the limits of sewer replacement at Site 771, located on Fuerte Estates Drive. While potholing this site, a differing existing pipe invert elevation was discovered. 3 Additional potholing to locate and verify the elevations of existing laterals and mainline was required to determine a new sewer profile. As a result, the existing main was replaced to the greatest extent practical. The new sewer profile decreased the planned sewer installation and resulted in a credit at this location.  CO 05 credits the contract for unused contract allowance items, as shown Exhibit B. Lastly, CO 05 addresses contract time as a result of the added work described above. The time impacts associated with CO 05 are provided in Exhibit B, including the addition of twenty-one (21) days for impacts due to caving materials and two (2) days for potholing and investigative work. In total, the twenty-three (23) additional days added to the contract will result in a revised total contract duration of 220 calendar days. Although CO 05 does add contract time due to the impacts associated with the work of CO 05, the Contractor is being assessed liquidated damages. In total, twenty-one (21) days of liquidated damages are being assessed for substantial completion of the Project beyond the time provided in the contract. This is primarily due to a late start by the Contractor. The Project reached substantial completion on November 10, 2016. It is anticipated that the Project will reach contract acceptance by the end of December 2016. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The total budget for CIP S2033, as approved in the FY 2017 budget, is $3,000,000. Total expenditures, plus outstanding commitments and forecast including this contract, are $2,999,682.00. See Attachment B for budget detail. Based on a review of the financial budget, the Project Manager anticipates that the budget for CIP S2033 is sufficient to support the Project. The Finance Department has determined that, under the current rate model, 100% of the funding is available from the Replacement Fund. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide high quality and reliable 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 4 that is innovative in providing water services at competitive rates, with a reputation for outstanding customer service.” LEGAL IMPACT: None. DM:jf P:\WORKING\CIP S2033 Sewer System Rehabilitation\Staff Reports\BD 01-04-17 RSD Ph 1 Construction\BD 01- 04-17 Staff Report RSD Basin Sewer Rehab Phase 1 CO 05 (DM-RP).Docx Attachments: Attachment A – Committee Action Attachment B – Budget Detail Exhibit A – Location Map Exhibit B – Change Order No. 5 ATTACHMENT A SUBJECT/PROJECT: S2033-003103 Approve Change Order No. 5 to the Contract with Transtar Pipeline, Inc. for the Rancho San Diego Basin Sewer Rehabilitation - Phase 1 Project COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on December 12, 2016, and the following comments were made:  Staff recommended that the Board approve Change Order No. 5 (CO 05) to the existing contract with Transtar Pipeline, Inc. (Transtar) in the amount of $61,592.34 for the Rancho San Diego Basin Sewer Rehabilitation - Phase 1 Project.  Staff reviewed the staff report with the Committee and indicated that since the award of the construction contract on February 13, 2016, four (4) change orders have been approved that total $81,618.71. See Exhibit B for a listing of the change orders and their respective amounts.  Staff indicated that CO 05 addresses a number of items and will serve to close out the contract with Transtar. See pages 2 and 3 for an illustration of the items included in Change Order No. 5.  It was noted that although CO 05 does add contract time due to the impacts associated with the work of CO 05, the Contractor is being assessed liquidated damages. Twenty one (21) days of liquidated damages are being assessed for substantial completion of the project beyond the time provided in the contract.  In response to several questions from the Committee, staff stated that the late start by the Contractor was due to their contract commitment with the City of San Diego. Staff also stated that the Contractor was in agreement with the District’s assessment of liquidated damages.  The Committee inquired about the work located at Site 771, Fuerte Estates Drive. Staff stated that the invert at the planned tie in point was at a different elevation. Additional potholing was required to verify the elevations of the existing laterals so a new revised sewer profile could be developed and constructed. The constructed sewer profile is relatively flat in this area, due to constraints associated with existing laterals, but did address the primary sag in the existing main. Staff indicated that the post-construction sewer video of the Site 771 sewer main segment confirmed that the entire segment is functioning satisfactory and confirms an improved flow when compared to the pre-construction condition.  Staff indicated that portions of the District’s original sewer system were constructed in the early 1970’s. Subsequent to the Committee meeting, staff followed up and verified that the sewer main replaced at Site 771 was originally constructed in December 1986. Following the discussion, the committee supported staff’s recommendation and presentation to the full board as a consent item. ATTACHMENT B – Budget Detail SUBJECT/PROJECT: S2033-003103 Approve Change Order No. 5 to the Contract with Transtar Pipeline, Inc. for the Rancho San Diego Basin Sewer Rehabilitation - Phase 1 Project u 1-Dec-16 Budget 3,000,000 Planning Regulatory Agency Fees 100 100 - 100 PETTY CASH CUSTODIAN Standard Salaries 220,584 220,584 - 220,584 Total Planning 220,684 220,684 - 220,684 Design 001102 Consultant Contracts 152,958 152,958 - 152,958 AEGIS ENGINEERING MGMT INC 20,720 20,720 - 20,720 DARNELL & ASSOCIATES INC 21,446 21,446 - 21,446 SOUTHERN CALIFORNIA SOIL 3,818 3,818 - 3,818 HUNSAKER & ASSOCIATES 21,086 21,086 - 21,086 NINYO & MOORE GEOTECHNICAL AND 6,995 6,995 - 6,995 AIRX UTILITY SURVEYORS INC 71,183 71,183 - 71,183 ARCADIS US INC Professional Legal Fees 920 920 - 920 STUTZ ARTIANO SHINOFF Service Contracts 385 385 - 385 SAN DIEGO DAILY TRANSCRIPT 1,500 1,500 - 1,500 CHICAGO TITLE COMPANY 5,040 5,040 - 5,040 MAYER REPROGRAPHICS INC 333 333 - 333 THE SAN DIEGO UNION-TRIBUNE Standard Salaries 491,072 491,072 - 491,072 Total Design 797,455 797,455 - 797,455 Construction Construction Contracts 970,970 860,319 110,651 970,970 TRANSTAR PIPELINE INC 16,088 16,088 - 16,088 CO #1 TRANSTAR PIPELINE INC 7,350 7,350 - 7,350 CO#2 TRANSTAR PIPELINE INC 7,445 - 7,445 7,445 CO #3 TRANSTAR PIPELINE INC 50,736 - 50,736 50,736 CO #4 TRANSTAR PIPLINE INC 61,592 - 61,592 61,592 CO #5 TRANSTAR PIPLINE INC 1,784 - 1,784 1,784 KIRK PAVING INC. 470,211 470,211 - 470,211 ARRIETA CONSTRUCTION INC 24,748 24,748 - 24,748 CALIFORNIA BANK & TRUST Consultant Contracts 2,400 2,400 - 2,400 RBF CONSULTING 100,590 90,190 10,400 100,590 ALYSON CONSULTING 2,738 2,738 - 2,738 AIRX UTILITY SURVEYORS INC 2,000 - 2,000 2,000 HUNSAKER & ASSOCIATES Professional Legal Fees 3,392 3,392 - 3,392 STUTZ ARTIANO SHINOFF Regulatory Agency Fees 31,500 29,054 2,446 31,500 COUNTY OF SAN DIEGO Standard Salaries 223,000 214,424 8,576 223,000 Project Contingency 5,000 - 5,000 5,000 Total Construction 1,981,544 1,720,913 28,422 1,981,544 Grand Total 2,999,682 2,739,052 260,630 2,999,682 Vendor/Comments Otay Water District S2033 - Sewer System Various Locations Rehabilitation Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost OTAY WATER DISTRICTRANCHO SAN DIEGO BASINSEWER REHABILITATION PHASE 1 EXHIBIT A CIP S2033F P:\WORKING\CIP S2033 Sewer System Rehabilitation\Graphics\RSD Phase 1\S2033, RSD Sewer Basin Phase 1, Location Map, Dec 2015.mxd JAMACHA RD C H A S E A V VISTA GRANDE HILLSDALE RD TINA ST WILLOW GLEN DR HILLSDALE RD HIDDEN MESA RD VISTA GRANDE RD SUNDALE RD RD WIND RIVER RD D O N A H U E D R 745 734 723 771 722 733 729 773 728744 880 867 753 779 VICINITY MAP PROJECT SITE NTS DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ?ò Aä%&s ?p ?Ë F 0 1,000500 Feet Legend Sewer Main Repairs (RSD Phase 1) Sewer Gravity Mains Sewer Manholes Site Number123 Contract / P.O. Change Order No. 5 page 2 of 4 Description of Work Description Increase Decrease Time Item No. 1: This Change Order provides for increased excavation, backfill and partial alignment correction resulting from encountering very loose and caving material and the existing sewer pipe outside the as-built alignment at Site 728 per RFI 008. $25,368.00 13 Item No. 2: This Change Order provides for increased excavation, backfill and partial alignment correction resulting from encountering very loose and caving material and the existing sewer pipe outside the as-built alignment at Site 773 per RFI 010. $37,382.00 8 Item No. 3: This Change Order provides for increased potholing and investigative work resulting from the discovery that the existing sewer was not at the design elevation. This information was necessary to respond to RFI 011. $9,841.00 2 Item No. 3: This Change Order provides for delivery of unused 8-inch SDR-26 PVC pipe and fittings that could not be restocked as a result of deletion of sewer pipe installation included as part of RFI 011 response. $833.82 0 Item No. 4: This Change Order decreases the amount allocated for Bid Item 7, Remove and Replace 8-inch Sewer Main by $22,890.00 to a new authorized amount of $667,380.00. (Delete 109 LF at $210/LF) $22,890.00 0 Item No. 5: This Change Order increases the amount allocated for Bid Item 11, Asphalt Concrete Pavement Restoration, Private Drive by $21,814.47 to a new authorized amount of $50,414.47. (Add 396.63 SY at $55/SY) $21,814.47 0 Item No. 6: This Change Order increases the amount allocated for Bid Item 12, Asphalt Concrete Pavement Restoration, Public Street by $26,076.05 to a new authorized amount of $60,526.05. (Add 401.17 SY at $65/SY) $26,076.05 0 Item No. 7: This Change Order decreases the amount allocated for Bid Item 16, Rock Removal by $9,333.00 to a new authorized amount of $667.00. (Delete 93.3 CY at $100/CY) $9,333.00 0 Item No. 8: This Change Order decreases the amount allocated for Bid Item 17, Trench Over-Excavation and Replacement with Crushed Rock by $2,000.00 to a new authorized amount of $0.00. (Delete 100 CY at $20/CY) $2,000.00 0 Item No. 9: This Change Order decreases the amount allocated for Bid Item 18, Undercrossing of Utilities Over 4-inches in Diameter, Not Identified on the Drawings by $4,500.00 to a new authorized amount of $3,000.00. (Delete 6 EA at $750/EA) $4,500.00 0 Item No. 10: Reimbursement for liquidated damages from October 20, 2016 until Substantial Completion on November 10, 2016 (21 Calendar days at $1,000/calendar day) $21,000.00 0 Sub Total Amount $121,315.34 $59,723.00 23 Total Net Change Order Amount $61,592.34 Contract / P.O. Change Order No. 5 page 3 of 4 Revisions to: BID SCHEDULE Item # Description Quantity Unit Unit Price Amount 7 Remove and Replace 8-inch Sewer Main 3,178 LF $210.00 $667,380.00 11 Asphalt Concrete Pavement Restoration, Private Drive 916.63 SY $55.00 $50,414.47 12 Asphalt Concrete Pavement Restoration, Public Street 931.17 SY $65.00 $60,526.05 16 Rock Removal 6.67 CY $100.00 $667.00 17 Trench Over-Excavation and Replacement with Crushed Rock 0 $20.00 $0.00 18 Undercrossing of Utilities Over 4-inches in Diameter Not Identified on the Drawings 4 EA $750.00 $3,000.00 Reason: Item No. 1: Resulting from excavation for Site 728 Burris Drive sewer replacement (Dwg. C-03), unconsolidated existing fill materials were encountered and the existing sewer pipe was discovered to be outside the correct alignment. The Contractor was directed to follow the existing alignment within the right-of-way during which unanticipated loose and caving material was encountered affecting production on a deep replacement. This change order is necessary to resolve all costs associated with this work including additional excavation and backfill required to complete the work. Item No. 2: Resulting from excavation for Site 773 Burris Drive sewer replacement (Dwg. C-11), unconsolidated existing fill materials were encountered and the existing sewer pipe was discovered to be outside the correct alignment. The Contractor was directed to follow the existing alignment within the right-of-way during which unanticipated loose and caving material was encountered affecting production on a deep replacement. This change order is necessary to resolve all costs associated with this work including additional excavation and backfill required to complete the work. Item No. 3: Resulting from the required connection point pothole for Site 771 Fuerte Estates Drive sewer replacement (Dwg. C-10), a differing existing pipe invert elevation was discovered. Resulting from the discovery additional potholing was required to determine the elevation of existing laterals and mainline to determine a new design profile for the sewer pipe. This change order is necessary to resolve all costs associated with this work including additional excavation and backfill required to complete the work. Item No. 4: The Contract Bid Item No 7, Remove and Replace 8-inch Sewer Main, required a quantity adjustment resulting from field conditions. Item No. 5: The Contract Bid Item No 11, Asphalt Concrete Pavement Restoration, Private Drive, required a quantity adjustment resulting from field conditions. Item No. 6: The Contract Bid Item No 12, Asphalt Concrete Pavement Restoration, Public Street, required a quantity adjustment resulting from field conditions. Item No. 7: The Contract Bid Item No 16, Rock Removal, required a quantity adjustment resulting from field conditions. Item No. 8: The Contract Bid Item No 17, Trench Over-Excavation and Replacement with Crushed Rock, required a quantity adjustment resulting from field conditions. Contract / P.O. Change Order No. 5 page 4 of 4 Item No. 9: The Contract Bid Item No 18, Undercrossing of Utilities Over 4-inches in Diameter, Not Identified on the Drawings required a quantity adjustment resulting from field conditions. Item No. 10: Pursuant to contractual provisions, failure of the Contractor to complete the work within the time allowed will result in damages being sustained by the District for each calendar day the Contractor fails to substantially complete all work. The adjusted Contract completion date was October 20, 2016 and substantial completion was achieved on November 10, 2016 resulting in 21 days of liquidated damages. This change order is required to reimburse the District for costs associated with the Contractor not completing the project within the allotted time. Page 1 of 1 COST ESTIMATE SUMMARY COR Site 728 Caving Soils - NEGOTIATED W.O. # PREPARED BY - Douglas Cook Contract: RSD Sewer - Phase 1 SIGNATURE: JOBSITE: C.I.P. NO. DATE: --- --- Impacts of Caving Soils --- --- Operator Foreman 1.0 EA 24.00 24.0 $92.16 $2,212 - --$2,212 Operator 1.0 EA 24.00 24.0 $85.98 $2,064 - --$2,064 Laborer 1.0 EA 24.00 24.0 $64.03 $1,537 ---$1,537 Laborer Apprentice 1.0 EA 24.00 24.0 $36.43 $874 ---$874 Labor Foreman 1.0 EA 24.00 24.0 $71.86 $1,725 ---$1,725 Crew Truck 1.0 EA 24.00 24.0 -$30.69 $737 --$737 Pickup Truck 2.0 EA 24.00 48.0 -$28.17 $1,352 --$1,352 Cat 314 Excavator 1.0 EA 24.00 24.0 -$60.18 $1,444 --$1,444 Cat 930 Loader 1.0 EA 24.00 24.0 -$91.98 $2,208 --$2,208 Bobcat S650 Skidsteer 1.0 EA 24.00 24.0 -$24.79 $595 --$595 Cat 321CL CR Excavator 1.0 EA 24.00 24.0 -$108.59 $2,606 --$2,606 ------ 288.0 $8,411 $8,942 $0 $0 $0 SALES TAX - 8.00%1 LS $0 $0 $8,411 $8,942 $0 $0 $17,353 MARK-UP PER CONTRACT (OH, PROFIT & BOND) $1,346 $1,431 $0 $2,776 TOTAL PRIME CONTRACTOR PRICE 288.0 $9,757 $10,372 $0 $0 $20,129 ----- Super 10 Dump Truck with Driver 2.0 EA 24.00 48.0 ---$99 $4,752 $4,752 ------ ------ 0.0 $0 $0 $0 $4,752 $4,752 SALES TAX 1 ls $0 $0 $0 $0 $0 $4,752 $4,752 MARK-UP PER CONTRACT (OH, PROFIT & BOND)$0 $0 $0 $238 $238 TOTAL SUBCONTRACTOR PRICE 0.0 $0 $0 $0 $4,990 $4,990 PRIME CONTRACTOR MARK-UP PER CONTRACT $0 $0 $0 $249 $249 TOTAL RFP PRICE 288.0 $9,757 $10,372 $0 $5,239 $25,368 UNITSQUANTITY LABOR MH/UNIT TOTAL COSTLABOR RATE TOTAL MANHOURS SUBTOTAL COST TOTAL COST SUBTOTAL COST TOTAL COST SUBCONTRACTOR DESCRIPTION DESCRIPTION EQUIPMENT MATERIAL TOTAL COSTUNIT COST TOTAL COSTUNIT COST QUANTITY UNITS LABOR EQUIPMENT UNIT COST TOTAL COSTMH/UNIT TOTAL MANHOURS LABOR RATE TOTAL COST TOTALUNIT COSTUNIT COST TOTAL COST UNIT PRICE TOTAL COST MATERIAL UNIT PRICE TOTALTOTAL COSTUNIT COST COST ESTIMATE SUMMARY COR Site 773 Caving Soils - NEGOTIATED W.O. # PREPARED BY - Douglas Cook Contract: RSD Sewer - Phase 1 SIGNATURE: JOBSITE: C.I.P. NO. DATE: --- --- Impacts of Caving Soils --- --- Operator Foreman 1.0 EA 32.00 32.0 $92.16 $2,949 - --$2,949 Operator 1.0 EA 32.00 32.0 $85.98 $2,751 - --$2,751 Laborer 1.0 EA 32.00 32.0 $64.03 $2,049 ---$2,049 Laborer Apprentice 2.0 EA 32.00 64.0 $36.43 $2,332 ---$2,332 Labor Foreman 1.0 EA 32.00 32.0 $71.86 $2,300 ---$2,300 Crew Truck 1.0 EA 32.00 32.0 -$30.69 $982 --$982 Pickup Truck 2.0 EA 32.00 64.0 -$28.17 $1,803 --$1,803 Cat 314 Excavator 1.0 EA 32.00 32.0 -$60.18 $1,926 --$1,926 Cat 930 Loader 1.0 EA 32.00 32.0 -$91.98 $2,943 --$2,943 Bobcat S650 Skidsteer 1.0 EA 32.00 32.0 -$24.79 $793 --$793 Cat 321CL CR Excavator 1.0 EA 32.00 32.0 -$108.59 $3,475 --$3,475 ------ 416.0 $12,380 $11,922 $0 $0 $0 SALES TAX - 8.00%1 LS $0 $0 $12,380 $11,922 $0 $0 $24,303 MARK-UP PER CONTRACT (OH, PROFIT & BOND) $1,981 $1,908 $0 $3,888 TOTAL PRIME CONTRACTOR PRICE 416.0 $14,361 $13,830 $0 $0 $28,191 ----- Super 10 Dump Truck with Driver 2.0 EA 32.00 64.0 ---$99 $6,336 $6,336 Shoring 2.0 EA 32.00 64.0 ---$31 $2,000 $2,000 ------ 0.0 $0 $0 $0 $8,336 $8,336 SALES TAX 1 ls $0 $0 $0 $0 $0 $8,336 $8,336 MARK-UP PER CONTRACT (OH, PROFIT & BOND)$0 $0 $0 $417 $417 TOTAL SUBCONTRACTOR PRICE 0.0 $0 $0 $0 $8,753 $8,753 PRIME CONTRACTOR MARK-UP PER CONTRACT $0 $0 $0 $438 $438 TOTAL RFP PRICE 416.0 $14,361 $13,830 $0 $9,190 $37,382 UNITSQUANTITY LABOR MH/UNIT TOTAL COST LABOR RATE TOTAL MANHOURS SUBTOTAL COST TOTAL COST SUBTOTAL COST TOTAL COST SUBCONTRACTOR DESCRIPTION DESCRIPTION EQUIPMENT MATERIAL TOTAL COSTUNIT COST TOTAL COSTUNIT COST QUANTITY UNITS LABOR EQUIPMENT UNIT COST TOTAL COSTMH/UNIT TOTAL MANHOURS LABOR RATE TOTAL COST TOTALUNIT COSTUNIT COST TOTAL COST UNIT PRICE TOTAL COST MATERIAL UNIT PRICE TOTALTOTAL COSTUNIT COST Page 1 of 1 Page 1 of 1 COST ESTIMATE SUMMARY COR Site 771 Additional Exploratory Potholing - NEGOTIATED W.O. # PREPARED BY - Douglas Cook Contract: RSD Sewer - Phase 1 SIGNATURE: JOBSITE: C.I.P. NO. DATE: --- --- Multiple Exploratory Potholes to provide for re-design of segment --- --- Operator Foreman 1.0 EA 9.0 9.0 $92.16 $825 - --$825 Operator 1.0 EA 9.0 9.0 $85.98 $770 - --$770 Laborer 1.0 EA 9.0 9.0 $64.03 $573 ---$573 Laborer Apprentice 2.0 EA 9.0 17.9 $36.43 $652 ---$652 Labor Foreman 1.0 EA 9.0 9.0 $71.86 $643 ---$643 Crew Truck 1.0 EA 9.0 9.0 -$30.69 $275 --$275 Pickup Truck 2.0 EA 9.0 17.9 -$28.17 $504 --$504 Cat 314 Excavator 1.0 EA 9.0 9.0 -$60.18 $539 --$539 Cat 930 Loader 1.0 EA 9.0 9.0 -$91.98 $823 --$823 Bobcat S650 Skidsteer 1.0 EA 9.0 9.0 -$24.79 $222 --$222 Cat 321CL CR Excavator 1.0 EA 9.0 9.0 -$108.59 $973 --$973 ------ 116.4 $3,463 $3,335 $0 $0 $0 SALES TAX - 8.00%1 LS $0 $0 $3,463 $3,335 $0 $0 $6,798 MARK-UP PER CONTRACT (OH, PROFIT & BOND) $554 $534 $0 $1,088 TOTAL PRIME CONTRACTOR PRICE 116.4 $4,017 $3,869 $0 $0 $7,886 ----- Super 10 Dump Truck with Driver 2.0 EA 9.0 17.9 ---$99 $1,773 $1,773 ------ ------ 0.0 $0 $0 $0 $1,773 $1,773 SALES TAX 1 ls $0 $0 $0 $0 $0 $1,773 $1,773 MARK-UP PER CONTRACT (OH, PROFIT & BOND)$0 $0 $0 $89 $89 TOTAL SUBCONTRACTOR PRICE 0.0 $0 $0 $0 $1,862 $1,862 PRIME CONTRACTOR MARK-UP PER CONTRACT $0 $0 $0 $93 $93 TOTAL RFP PRICE 116.4 $4,017 $3,869 $0 $1,955 $9,841 UNITSQUANTITY LABOR MH/UNIT TOTAL COSTLABOR RATE TOTAL MANHOURS SUBTOTAL COST TOTAL COST SUBTOTAL COST TOTAL COST SUBCONTRACTOR DESCRIPTION DESCRIPTION EQUIPMENT MATERIAL TOTAL COSTUNIT COST TOTAL COSTUNIT COST QUANTITY UNITS LABOR EQUIPMENT UNIT COST TOTAL COSTMH/UNIT TOTAL MANHOURS LABOR RATE TOTAL COST TOTALUNIT COSTUNIT COST TOTAL COST UNIT PRICE TOTAL COST MATERIAL UNIT PRICE TOTALTOTAL COSTUNIT COST Page 1 of 1 COST ESTIMATE SUMMARY COR Deleted Materials and Delivery - NEGOTIATED W.O. # PREPARED BY - Douglas Cook Contract: RSD Sewer - Phase 1 SIGNATURE: JOBSITE: C.I.P. NO. DATE: --- --- Purchase and Delivery of non-returnable deleted materials --- --- Operator Foreman 1.0 EA 0.0 $92.16 $0 - --$0 Operator 1.0 EA 0.0 $85.98 $0 - --$0 Laborer 1.0 EA 0.0 $64.03 $0 ---$0 Laborer Apprentice 2.0 EA 0.0 $36.43 $0 ---$0 Labor Foreman 1.0 EA 2.0 2.0 $71.86 $145 ---$145 Crew Truck 1.0 EA 2.0 2.0 -$30.69 $61 --$61 Pickup Truck 2.0 EA 0.0 -$28.17 $0 --$0 Cat 314 Excavator 1.0 EA 0.0 -$60.18 $0 --$0 Cat 930 Loader 1.0 EA 0.0 -$91.98 $0 --$0 Bobcat S650 Skidsteer 1.0 EA 0.0 -$24.79 $0 --$0 Cat 321CL CR Excavator 1.0 EA 0.0 -$108.59 $0 --$0 8-Inch SDR 26 98.0 LF 0.0 --$3.87 $379 -$379 8-inch x 4-inch Wyes 2.0 EA 0.0 --$46.63 $93 -$93 ------ 4.0 $145 $61 $473 $0 $0 SALES TAX - 8.00%1 LS $40 $40 $145 $61 $513 $0 $719 MARK-UP PER CONTRACT (OH, PROFIT & BOND) $23 $10 $82 $115 TOTAL PRIME CONTRACTOR PRICE 4.0 $168 $71 $595 $0 $834 ----- Super 10 Dump Truck with Driver 2.0 EA 0.0 0.0 ---$99 $0 $0 ------ ------ 0.0 $0 $0 $0 $0 $0 SALES TAX 1 ls $0 $0 $0 $0 $0 $0 $0 MARK-UP PER CONTRACT (OH, PROFIT & BOND)$0 $0 $0 $0 $0 TOTAL SUBCONTRACTOR PRICE 0.0 $0 $0 $0 $0 $0 PRIME CONTRACTOR MARK-UP PER CONTRACT $0 $0 $0 $0 $0 TOTAL RFP PRICE 4.0 $168 $71 $595 $0 $833.82 TOTALUNIT COSTUNIT COST TOTAL COST UNIT PRICE TOTAL COST MATERIAL UNIT PRICE TOTALTOTAL COSTUNIT COST QUANTITY UNITS LABOR EQUIPMENT UNIT COST TOTAL COSTMH/UNIT TOTAL MANHOURS LABOR RATE TOTAL COST EQUIPMENT MATERIAL TOTAL COSTUNIT COST TOTAL COSTUNIT COST SUBTOTAL COST TOTAL COST SUBTOTAL COST TOTAL COST SUBCONTRACTOR DESCRIPTION DESCRIPTION UNITSQUANTITY LABOR MH/UNIT TOTAL COSTLABOR RATE TOTAL MANHOURS CIP S2033 - Rancho San Diego Basin Sewer Rehabilitation, Phase 1 Project: S2033 Consultant/Contractor: Transtar Pipeline, Inc.Subproject: 003000 APPROVED C.O. AMOUNT BY DATE DESCRIPTION TYPE C.O. 1 $16,088.00 RP 8/22/2016 Contractor 2 $7,350.00 GA 9/8/2016 Revised sewer profile at Site 722 add 35 lf 8-inch sewer Contractor 3 $7,444.71 MW 10/28/2016 Restore three existing survey monuments Contractor 4 $50,736.00 Board Contractor 5 $61,592.34 Board Contractor 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 3435 Total C.O.'s To Date: $143,211.05 14.7% Original Contract Amount:$970,970.00 Current Contract Amount:$1,114,181.05 Change Order Breakdown for the Month: Month Net C.O.$ Limit Authorization C.O. % 12/16 $2,000 Insp 0.0% $5,000 PM/Supervisor 0.0% $10,000 Manager 0.0% $20,000 Chief 0.0% $25,000 AGM 0.0% $75,000 GM 0.0% $143,211.05 >$75,000 Board CHANGE ORDER LOG Realignment resulting in increased excavation and backfill at Site 734 per RFI 001. Paseo Grande differing site condition - unconsolidated existing fill material Sites 728, 773, 771 differing site condition, additional paving, liquidated damages, close out change order STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: January 4, 2017 SUBMITTED BY: Dan Martin Engineering Manager PROJECT NO: FILE NO: D0886-090140 ENG70-10-146 DIV. NO. 1 APPROVED BY: Rod Posada, Chief, Engineering German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Adopt Resolution No. 4318 Approving the Annexation Request of Property Owned by R-12 B, LLC Co. (APN 644-310-53-00), Otay Ranch II SUN 12, LLC Co. (APN 644-310-54-00), and R-12 A, LLC Co. (APN 644-310-55-00) to Otay Water District Water Improvement Districts 22 and 27 GENERAL MANAGER’S RECOMMENDATION: Adopt Resolution No. 4318 fixing terms and conditions for the annexation of certain real properties owned by R-12 B, LLC Co. (APN 644-310-53-00), Otay Ranch II SUN 12, LLC Co. (APN 644-310- 54-00), and R-12 A, LLC Co. (APN 644-310-55-00) to Otay Water District Water Improvement Districts 22 and 27 (see Exhibit A for Location Map). COMMITTEE ACTION: Please see Attachment A. PURPOSE: The proposed annexation is to provide water service to the parcels owned by R-12 B, LLC Co. (APN 644-310-53-00), Otay Ranch II SUN 12, LLC Co. (APN 644-310-54-00), and R-12 A, LLC Co. (APN 644-310-55-00) which are located in Chula Vista, California. 2 ANALYSIS: A written annexation request on behalf of the property owners signed by Mora de Murguia, Public Finance Manager for Baldwin & Sons has been received for the annexation of APN’s 644-310-53, 54, 55-00 into Improvement District No. 22 and 27 for water service. A petition signed by the respective property owners has also been received. The property proposed to be annexed is located in the City of Chula Vista and is bordered by Olympic Parkway, La Media Road, and Santa Venetia Street, as shown in Exhibit A. The total acreage to be annexed is 13.24 acres. The property is within the jurisdictional boundary of the Otay Water District and following the Board’s approval, it will become part of Water ID No. 22/27. The parcels are fronted by existing Otay Water District potable and recycled water mains. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The property owner will pay the District’s annexation processing fee of $776.20, any additional meter costs and annexation fees as established in the attached Resolution, and $397.20 in annual availability fees. No water annexation fees shall be charged in accordance with Section 9.04B of the District’s Code of Ordinances since the proposed annexation parcels are already located within the District’s boundaries and are applying for annexation into a water ID. STRATEGIC GOAL: Provide enhanced water service to meet customer needs. LEGAL IMPACT: No legal impact. DM:jf P:\Public-s\Annexation Requests\2017\V2 R-12\BD 01-04-2017 - Staff Report Water Annexation ID 22_27- Otay Ranch II Sun 12, R-12A, R12-B.doc Atttachments: Attachment A - Committee Action Attachment B - Resolution No. 4318 Exhibit A - Legal Description Exhibit B - Legal Map Exhibit A -- Location Map ATTACHMENT A SUBJECT/PROJECT: D0886-090140 ENG70-10-146 Adopt Resolution No. 4318 Approving the Annexation Request of Property Owned by R-12 B, LLC Co. (APN 644-310-53-00), Otay Ranch II SUN 12, LLC Co. (APN 644-310-54-00), and R- 12 A, LLC Co. (APN 644-310-55-00) to Otay Water District Water Improvement Districts 22 and 27 COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on December 12, 2016, and the following comments were made:  Staff recommended that the Board Adopt Resolution No. 4318 fixing terms and conditions for the annexation of certain real properties owned by R-12 B, LLC Co. (APN 644-310-53- 00), Otay Ranch II SUN 12, LLC Co. (APN 644-310-54-00), and R-12 A, LLC Co. (APN 644-310-55-00) to Otay Water District Water Improvement Districts 22 and 27.  Staff reviewed the staff report with the Committee and noted that the annexation area totals 13.24 acres and will be served with both potable and recycled water from the District.  The developer will be constructing approximately 600 multi- family apartments, which will be sited on the proposed parcels to be annexed and on the adjacent property. Following the discussion, the committee supported staff’s recommendation and presentation to the full board as a consent item. ATTACHMENT B Page 1 of 4 RESOLUTION NO. 4318 A RESOLUTION OF THE BOARD OF DIRECTORS OF OTAY WATER DISTRICT APPROVING THE ANNEXATION TO OTAY WATER DISTRICT IMPROVEMENT DISTRICT NOS. 22/27 OF THOSE LANDS DESCRIBED AS "R-12 B, LLC CO., OTAY RANCH II SUN 12, LLC CO., AND R-12 A, LLC CO. WATER ANNEXATION REQUEST INTO IMPROVEMENT DISTRICTS (IDs) 22 AND 27” (APNs 644-310-53, 54, AND 55-00) (FILE NO. ENG70-10-146/DIVISION 1) WHEREAS, a letter has been submitted by BALDWIN & SONS, C/O MORA DE MURGUIA, on behalf of the owners and parties that have an interest in the land described in Exhibit "A," attached hereto, for annexation of said land to Otay Water District Improvement District Nos. 22/27 pursuant to California Water Code Section 72670 et seq.; and WHEREAS, pursuant to Section 72680.1 of said Water Code, the Board of Directors may proceed and act thereon without notice and hearing. NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT FINDS, RESOLVES, ORDERS AND DETERMINES as follows: 1. A depiction of the area proposed to be annexed, and the boundaries of IDs 22/27 following the annexation, is set forth on a map in Exhibit “B” filed with the Secretary of the District, which map shall govern for all details as to the area proposed to be annexed. 2. The purpose of the proposed annexation is to make water service available to the area to be annexed, which availability constitutes a benefit to said area. 3. The Board finds and determines that the area proposed to be annexed to IDs 22/27 will be benefited by such annexation ATTACHMENT B Page 2 of 4 and that the property currently within IDs 22/27 will also be benefited and not injured by such annexation because after the annexation a larger tax base will be available to finance the water facilities and improvements of IDs 22/27. 4. The Board of Directors hereby declares that the annexa- tion of said property is subject to the owners complying with the following terms and conditions: (a) The petitioner for said annexation shall pay to Otay Water District the following: (1) The annexation processing fee at the time of application; (2) Yearly assessment fees will be collected through the County Tax Assessor’s office in the amount of $10 or $30 for APNs 644-310-53, 54, and 55-00; (3) In the event that water service is to be provided, Petitioners shall pay all applicable water meter fees per Equipment Dwelling Unit (EDU) at the time the meter is purchased; and (4) Payment by the owner of APNs 644-310-53, 54, and 55-00 of all other applicable local or state agency fees or charges. (b) The property to be annexed shall be subject to taxation after annexation thereof for the purposes of the improvement district, including the payment of principal and interest on bonds and other ATTACHMENT B Page 3 of 4 obligations of the improvement district, author- ized and outstanding at the time of annexation, the same as if the annexed property had always been a part of the improvement district. 5. The Board hereby declares the property described in Exhibit "A" shall be considered annexed to IDs 22/27 upon passage of this resolution. 6. The Board of Directors further finds and determines that there are no exchanges of property tax revenues to be made pursuant to California Revenue and Taxation Code Section 95 et seq., as a result of such annexation. 7. The annexation of APNs 644-310-53, 54, and 55-00 to the District’s Improvement Districts 22/27 is hereby designated as the “R-12 B, LLC CO., OTAY RANCH II SUN 12, LLC CO., AND R-12 A, LLC CO. WATER ANNEXATION”. 8. Pursuant to Section 57202(a) of the Government Code, the effective date of the R-12 B, LLC CO., OTAY RANCH II SUN 12, LLC CO., AND R-12 A, LLC CO. WATER ANNEXATION shall be the date this Resolution is adopted by the Board of Directors of the Otay Water District. 9. The General Manager of the District and the Secretary of the District, or their respective designees, are hereby ordered to take all actions required to complete this annexation. PASSED, APPROVED, AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting held this 4th day of January, 2017. ATTACHMENT B Page 4 of 4 President ATTEST: __________________________________ District Secretary EXHIBIT "A" ANNEXATION TO OTAY IMPROVEMENT DISTRICT NO. 22-27 GEOGRAPHIC DESCRIPTION (CONTINUED) ALL THAT CERTAIN REAL PROPERTY, BEING PORTIONS OF LOTS 1, 2 AND “A” OF CHULA VISTA TRACT NO. 06-05, OTAY RANCH VILLAGE 2 NEIGHBORHOOD R-12, ACCORDING TO MAP THEREOF NO. 16060, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, SEPTEMBER 21, 2015, TOGETHER WITH A PORTION OF SANTA VENETIA STREET AS DEDICATED PER CHULA VISTA TRACT NO. 06-05, OTAY RANCH VILLAGE 2 AND PORTIONS OF VILLAGE 4 “A” MAP, ACCORDING TO MAP THEREOF NO. 15350, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, MAY 26, 2006, ALL IN THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF THE INTERSECTION OF LA MEDIA ROAD AND SANTA VENETIA STREET, ALSO BEING A POINT ON THE EXISTING OTAY WATER DISTRICT BOUNDARY AND THE BEGINNING OF A 4336.00 FOOT RADIUS CURVE, CONCAVE WESTERLY, A RADIAL LINE TO SAID POINT BEARS NORTH 76°37'54" EAST; THENCE ALONG THE EXISTING DISTRICT BOUNDARY, (1) SOUTHERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 00°41'09" AN ARC DISTANCE OF 51.91 FEET; THENCE, (2) SOUTH 71°57'23" WEST, 377.47 FEET TO THE BEGINNING OF A NON-TANGENT 539.00 FOOT RADIUS CURVE, CONCAVE NORTHERLY, A RADIAL LINE TO SAID POINT BEARS SOUTH 06°25'44" EAST; THENCE, (3) WESTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 11°08'29" AN ARC DISTANCE OF 104.81 FEET; THENCE, (4) NORTH 17°51'17" WEST, 1165.24 FEET; THENCE, (5) NORTH 62°00'21" EAST, 48.01 FEET; THENCE, (6) NORTH 61°03'00" EAST, 48.63 FEET; THENCE, (7) NORTH 73°14'35" EAST, 100.63 FEET; THENCE, (8) NORTH 61°56'50" EAST, 207.78 FEET; THENCE, (9) SOUTH 73°25'24" EAST, 8.35 FEET; THENCE, (10) SOUTH 28°29'50" EAST, 52.50 FEET TO THE BEGINNING OF A 4332.00 FOOT RADIUS CURVE, CONCAVE SOUTHWESTERLY; THENCE, (11) SOUTHEASTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 03°30'05" AN ARC DISTANCE OF 264.73 FEET TO THE BEGINNING OF A NON-TANGENT 4334.00 FOOT RADIUS CURVE, CONCAVE SOUTHWESTERLY, A RADIAL LINE TO SAID POINT BEARS NORTH 63°59'33" EAST; THENCE, (12) SOUTHEASTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 02°59'43" AN ARC DISTANCE OF 226.58 FEET TO THE BEGINNING OF A NON-TANGENT 4336.00 FOOT RADIUS CURVE, CONCAVE SOUTHWESTERLY, A RADIAL LINE TO SAID POINT BEARS NORTH 67°59'57" EAST; OTAY WATER DISTRICT OTAY RANCH VILLAGE 2 R-12 ANNEXATION REQUESTTO IMPROVEMENT DISTRICTS 22 AND 27 EXHIBIT A F P: \ D R A F T I N G D E P A R T M E N T \ I n f o f o r O t h e r s \ O W D \ P u b l i c S e r v i c e s \ O t a y R a n c h V i l l a g e A n n e x a t i o n 1 1 - 2 8 - 1 6 . m x d F 0 460230 Feet PROJECT SITE OLYM P I C PKW Y SAN T A VENETIA ST L A M E D I A R D !\ VICINITY MAP PROJECT SITE NTSDIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ?ò Aä%&s ?p ?Ë F STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: January 4, 2017 SUBMITTED BY: Kevin Cameron Associate Engineer Bob Kennedy Engineering Manager PROJECT: Various DIV. NO. All APPROVED BY: Rod Posada, Chief, Engineering German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Award of As-Needed Coating Inspection Services Contract to CSI Services, Inc. in an amount not-to-exceed $175,000 for Fiscal Years 2017 through 2019 GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) award a professional As-Needed Coating Inspection Services contract to CSI Services, Inc. (CSI) and to authorize the General Manager to execute an agreement with CSI in an amount not-to-exceed $175,000 for a period of three (3) fiscal years (FY 2017 through FY 2019), ending June 30, 2019. COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to enter into a professional services agreement with CIS for As-Needed Coating Inspection Services in an amount not-to-exceed $175,000 for a period of three (3) fiscal years (FY 2017 through FY 2019), ending June 30, 2019. 2 ANALYSIS: The District will require the services of a professional coating inspection consultant in support of the District’s Capital Improvement Program (CIP), and more specifically, the Corrosion Control Program for steel reservoirs, for the next three (3) fiscal years. Due to the strict requirements for the surface preparation and coating application on water storage tanks, the District uses a third party coating inspector to monitor, document, and verify coatings are applied per the coating manufacturer’s specifications. The District requires the coating inspector be certified by the National Association of Corrosion Engineers (NACE) as a Level III Coating Inspector. The Coating Inspector tasks include, but are not limited to, submitting daily reports detailing the contractors activities, periodic testing, and overall quality control for the recoating procedures. It is more efficient and cost effective to issue an as-needed contract for coating inspection services which will provide the District with the ability to obtain consulting services in a timely and efficient manner. This concept has also been used in the past for other disciplines such as design engineering, construction management, geotechnical, and environmental services. The District will issue task orders to the consultant for specific CIP projects during the contract period. The consultant will then prepare a detailed scope of work, schedule, and fee estimate for each task order assigned under the contract. Upon written task order authorization from the District, the consultant shall then proceed with the project as described in the scope of work. The anticipated CIP projects that are estimated to require coating inspection services for the duration of this contract are listed below: CIP DESCRIPTION ESTIMATED COST P2534 978-1 Reservoir Interior/Exterior Coating & Upgrades $20,000 P2544 850-2 Reservoir Interior/Exterior Coating & Upgrades $30,000 P2533 1200-1 Reservoir Interior/Exterior Coating & Upgrades $25,000 P2543 850-1 Reservoir Interior/Exterior Coating & Upgrades $25,000 P2546 980-2 Reservoir Interior/Exterior Coating & Upgrades $35,000 P2531 944-1 Reservoir 2-year Warranty Inspection & Repairs $5,000 P2532 944-2 Reservoir 2-year Warranty Inspection & Repairs $10,000 P2535 458-2 Reservoir 2-year Warranty Inspection & Repairs $5,000 TOTAL: $155,000 3 The coating inspection scopes of work for the above CIP projects are estimated from preliminary information and past CIP projects. Therefore, staff believes that a $175,000 cap on the As-Needed Coating Inspection Services contract is adequate, while still providing additional capacity for unforeseen support needs by the District. This As-Needed Coating Inspection Services contract does not commit the District to any expenditure until a task order is approved to perform work on a CIP project. The District does not guarantee work to the consultant, nor does the District guarantee that it will expend all of the funds authorized by the contract on professional services. The District solicited for coating inspection services by placing an advertisement on the Otay Water District’s website on September 22, 2016 and with various other publications. Nine (9) firms submitted a letter of interest and a statement of qualifications. The Request for Proposal (RFP) for As-Needed Coating Inspection Services was sent to all nine (9) firms resulting in five (5) proposals received on November 9, 2016. The firms are listed below:  Bay Area Coating Consultants, Denair, CA  BN Capital Suppliers, Chesterfield, MO  Corrpro, Santa Fe Springs, CA  CSI Services, Santa Clarita, CA  RF Yeager, Lakeside, CA Four firms, HDR, HRV Conformance Verification Associates, MCS Inspection Group, West Coast Coating Consultants elected not to submit a proposal. In accordance with the District’s Policy 21, staff evaluated and scored all written proposals. CSI received the highest score for their services based on their experience, understanding of the scope of work, proposed method to accomplish the work, and their composite hourly rate. CSI was the most qualified consultant with the best overall rating or ranking. A summary of the complete evaluation is shown in Attachment B. CSI submitted the Company Background Questionnaire, as required by the RFP, and staff did not find any significant issues. In addition, staff checked their references and performed an internet search on the company. Staff found the references to be excellent and did not find any outstanding issues with the internet search. 4 FISCAL IMPACT: Joe Beachem, Chief Financial Officer The funds for this contract will be expended from the Fiscal Years 2017, 2018, and 2019 budgets for a variety of CIP projects, as previously noted above. This contract is for as-needed professional services based on the District’s need and schedule, and expenditures will not be made until a task order is approved by the District for the consultant’s services on a specific CIP project. Based on a review of the financial budgets, the Project Manager anticipates that the budgets will be sufficient to support the professional as-needed consulting services required for the CIP projects noted above. The Finance Department has determined that, under the current rate model, the funds to cover this contract are available as budgeted for these CIP projects. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide high quality and reliable 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 innovative in providing water services at competitive rates, with a reputation for outstanding customer service." LEGAL IMPACT: None. KC/BK:jf P:\WORKING\As Needed Services\Coating Inspection\FY 2017-2019\Staff Report\01-04-2017-Staff Report As- needed Coating Inspection FY2017-2019 (KC-BK).docx Attachments: Attachment A – Committee Action Attachment B – Summary of Proposal Rankings ATTACHMENT A SUBJECT/PROJECT: VARIOUS Award of As-Needed Coating Inspection Services Contract to CSI Services, Inc. in an amount not-to-exceed $175,000 for Fiscal Years 2017 through 2019 COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on December 12, 2016, and the following comments were made:  Staff recommended that the Board award a professional As-Needed Coating Inspection Services contract to CSI Services, Inc. (CSI) and to authorize the General Manager to execute an agreement with CSI in an amount not-to-exceed $175,000 for a period of three (3) fiscal years (FY 2017 through FY 2019), ending June 30, 2019.  Staff stated that the As-Needed Coating Inspection Services contract will provide the District with the ability to obtain consulting services in a timely and efficient manner on an as- needed basis. Page 2 of the staff report provides a list of the proposed CIP projects. It was noted that $20,000 is included in the contract amount for future unanticipated work.  Staff indicated that the Coating Inspector will be responsible for monitoring and documenting the recoating process on the District’s water storage facilities. The coatings applied to potable water tanks in particular, have stringent application guidelines. Staff stated that the Coating Inspector certifies that the contractor adheres to the manufacturer’s specifications and the State’s drinking water regulations. It was highlighted that this service is separate from the Cathodic Protection Consultant who monitors steel pipelines, and the performance of the anodes in steel reservoirs.  Staff discussed the soliciting process that is detailed on page 3 of the staff report. CSI received the overall highest score based on their experience, understanding of the scope of work, proposed method to accomplish the work, and their composite hourly rate.  Staff shared that CSI’s references rated them highly and would use them again on future contracts.  The Committee inquired if the District’s contractors are researched. Staff stated that the District performs an internet search and validates their licenses. Staff also contacts references to ask about past performance.  In response to a question from the Committee, the current contractor for As-Needed Coating Inspection Services is Corrpro from Santa Fe Springs, California.  The Committee inquired about the reference check for CSI. Staff stated that CSI’s references were excellent and highly reputable and is a Society for Protective Coatings (SSPC) QP5 Certified Inspection Firm. Staff shared that there are only two (2) firms in California that have this type of certification. Following the discussion, the committee supported staff’s recommendation and presentation to the full board as a consent item. ATTACHMENT B SUBJECT/PROJECT: VARIOUS Award of As-Needed Coating Inspection Services Contract to CSI Services, Inc. in an amount not-to-exceed $175,000 for Fiscal Years 2017 through 2019 Qualifications of Team Responsiveness and Project Understanding Technical and Management Approach INDIVIDUAL SUBTOTAL - WRITTEN AVERAGE SUBTOTAL - WRITTEN Proposed Rates* Consultant's Commitment to DBE TOTAL SCORE 30 25 30 85 85 15 Y/N 100 Poor/Good/ Excellent Dan Martin 23 20 23 66 Jeff Marchioro 25 21 23 69 Brandon DiPietro 25 21 25 71 Jon Chambers 25 21 25 71 Jake Vaclavek 22 20 23 65 Dan Martin 25 22 25 72 Jeff Marchioro 28 23 27 78 Brandon DiPietro 25 22 27 74 Jon Chambers 27 23 28 78 Jake Vaclavek 25 23 25 73 Dan Martin 26 21 25 72 Jeff Marchioro 23 20 24 67 Brandon DiPietro 25 21 25 71 Jon Chambers 23 20 24 67 Jake Vaclavek 26 21 24 71 Dan Martin 28 22 26 76 Jeff Marchioro 28 23 27 78 Brandon DiPietro 28 23 28 79 Jon Chambers 28 24 28 80 Jake Vaclavek 27 24 25 76 Dan Martin 30 24 30 84 Jeff Marchioro 30 25 30 85 Brandon DiPietro 30 24 29 83 Jon Chambers 29 25 29 83 Jake Vaclavek 28 24 28 80 Firm B & N BACC Corrpro CSI Yeager Fee $38,640 $33,824 $29,100 $30,320 $36,800 Score 1 8 15 13 4 *Note: Review Panel does not see or consider proposed fee when scoring other categories. The proposed fee is scored by the PM, who is not on the Review Panel. R F Yeager 83 4 Y 87 CSI Services 78 13 Y 91 Excellent Corrpro 70 15 Y 85 Bay Area Coating Consultants (BACC) B & N Inspection and Supply 68 1 Y 69 MAXIMUM POINTS RATES SCORING CHART ATTACHMENT B SUMMARY OF PROPOSAL RANKINGS As-Needed Coating Inspection Services FY 2017-2019 WRITTEN REFERENCES 75 8 Y 83 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: January 4, 2017 PROJECT: DIV. NO. ALL SUBMITTED BY: Kelli Williamson Human Resources Manager APPROVED BY: Adolfo Segura, Chief, Administrative Services German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: ADOPT RESOLUTION #4324 TO UPDATE BOARD POLICY #47, POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION AND COMPLAINT PROCEDURE, AND BOARD POLICY #48, ADA/FEHA DISABILITY POLICY GENERAL MANAGER’S RECOMMENDATION: That the Board adopt Resolution #4324 to update Board Policy #47, Policy Against Discrimination, Harassment, Retaliation and Complaint Procedure, and Board Policy #48, ADA/FEHA Disability Policy, due to recent legislative updates that include expanding the protected class and protected members definitions as well as requiring elected officials to attend harassment prevention training. COMMITTEE ACTION: Please see “Attachment A”. PURPOSE: To request that the Board adopt Resolution #4324 to update Board Policy #47, Policy Against Discrimination, Harassment, Retaliation and Complaint Procedure, and Board Policy #48, ADA/FEHA Disability Policy, due to recent legislative updates that include expanding the protected class and protected members’ definitions as well as requiring elected officials to attend harassment prevention training. ANALYSIS: Consistent with the District’s Strategic Plan, the District regularly reviews policies and procedures to ensure they are streamlined and are clear and consistent with applicable laws. Based on recent changes to the California legislation, District staff is recommending revisions to the attached Board Policy #47, Policy Against Discrimination, Harassment, Retaliation and Complaint Procedure, and Board Policy #48, ADA/FEHA Disability Policy (Attachment B). Updates are detailed below and revisions are shown in the attached strike-through copies of the policies (Exhibits 1 and 2). Policy Against Discrimination, Harassment, Retaliation and Complaint Procedure (Board Policy #47) The Policy Against Discrimination, Harassment, Retaliation and Complaint Procedure is being updated due to legislation expanding the protected classes to include religious dress and grooming practices, sex stereotype, transgender, breastfeeding and pregnancy-related medical conditions. The protected members’ definition was also updated to include persons providing services pursuant to a contract with the District. In addition, there is now a requirement of a two-hour harassment prevention training for elected officials. The title of the policy was also updated to recognize that Retaliation is covered under the policy (Attachment C). ADA/FEHA Disability Policy (Board Policy #48) The ADA/FEHA Disability Policy is being updated with minor revisions that includes the title update to the referenced Policy #47 as well as pertinent updates as recommended by General Counsel (Attachment D). The Association has agreed to the policies as presented and General Counsel has reviewed the proposed updates. Based on the above, it is recommended that the Board of Directors adopt Resolution #4324 in support of the proposed revisions. FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. STRATEGIC GOAL: Optimize the District’s Operating Efficiency. LEGAL IMPACT: None. ATTACHMENTS: Attachment A – Committee Action Report Attachment B – Resolution #4324 Exhibit 1 – Board Policy #47, Policy Against Discrimination, Harassment, Retaliation and Complaint Procedure Exhibit 2 - Board Policy #48, ADA/FEHA Disability Policy Attachment C – Proposed Copy, Board Policy #47, Policy Against Discrimination, Harassment, Retaliation and Complaint Procedure Attachment D – Proposed Copy, Board Policy #48, ADA/FEHA Disability Policy ATTACHMENT A SUBJECT/PROJECT: ADOPT RESOLUTION #4324 TO UPDATE BOARD POLICY #47, POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION AND COMPLAINT PROCEDURE, AND BOARD POLICY #48, ADA/FEHA DISABILITY POLICY COMMITTEE ACTION: The Finance, Administration, and Communications Committee reviewed this item at a meeting held on December 13, 2016 and the following comments were made:  Staff is requesting that the Board adopt Resolution No. 4324 to update Board Policy No. 47, Policy Against Harassment, Retaliation and Complaint Procedure, and Board Policy No. 48, ADA/FEHA Disability Policy, due to recent legislative updates that include expanding the protected class and protected members definitions as well as requiring elected officials to attend harassment prevention training.  Staff reviewed the information in the staff report.  In response to an inquiry from the Committee, staff wishes to clarify that the Discrimination and Harassment definitions are legal definitions under the DFEH and FEHA laws and the Board of Directors is not specifically listed in the DFEH or FEHA laws. The District, however, intends to provide these protections to the members of the board and, thus, the board has been identified in the Policy where appropriate to accomplish this purpose. Upon completion of the discussion, the committee supported staffs’ recommendation and presentation to the full board on the consent calendar. 1 RESOLUTION NO. 4324 RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT TO REVISE DISTRICT POLICY WHEREAS, the Board of Directors of Otay Water District have established policies, procedures, ordinances, and resolutions for the efficient operation of the District; and WHEREAS, it is the policy of the District to establish procedures to review policies, procedures, ordinances, and resolutions periodically to ensure they are current and relevant; and WHEREAS, District staff has identified Board Policy #47, Policy Against Discrimination, Harassment, and Retaliation and Complaint Procedure, and Board Policy #48, ADA/FEHA Disability Policy, as requiring revisions as per the attached strike-through copies. NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Otay Water District amends the Board Policies indicated above in the form presented to the Board at this meeting. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting held this 4th of January, 2017. __________________________ President ATTEST: ___________________________ Secretary OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, AND HARASSMENT, RETALIATION AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 1/4/17 3/4/15 Page 1 of 8 PURPOSE The purpose of this policy is to (i) advise all employees, unpaid interns, and volunteers that tThe Otay Water District (“District”) disapproves of and will not tolerate unlawful discrimination or harassment of its employees, members of the Board of Directors, unpaid interns, or volunteers, job applicants or persons providing services pursuant to a contract with the District, or retaliation against those who report such behavior. This policy sets, and (ii) set forth a procedure for investigating and resolving internal complaints of discrimination, harassment, or retaliation. DEFINITIONS Discrimination – Any decision or action that is based on a District employee’s, unpaid intern’s, volunteer’s, job applicant’s, or person providing services pursuant to a contract with the District’s an individual’s status as a member of a protected class that adversely affects a District the employee, unpaid intern, or volunteer, job applicant, person providing services pursuant to a contract with the District, or his/her or the employee’s, unpaid intern’s, or volunteer’s work conditions, terms of employment, or work environment. Harassment – Any decision or action that is based on a District employee’s, unpaid intern’s, or volunteer’s, job applicant’s, or person providing services pursuant to a contract with the District’s status as a member of a protected class, made for the purpose or having the effect of adversely affecting that employee’s, unpaid intern’s, or volunteer’s, job applicant’s or persons providing services pursuant to a contract with the District’s work conditions, terms of employment, work conditions, or work environment. Harassment may include, but is not limited to:  Verbal conduct such as epithets, derogatory jokes or comments, slurs, or unwelcome sexual advances, invitations or comments;  Visual displays such as derogatory and/or sexually-oriented posters, photography, cartoons, drawings or gestures; OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, AND HARASSMENT, RETALIATION AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 1/4/17 3/4/15 Page 2 of 8  Physical conduct including assault, unwanted touching, intentionally blocking normal movement or interfering with work.;  Threats and demands to submit to sexual requests as a condition of continued employment or to avoid an adverse consequence, and offers of employment benefits in return for sexual favors. Such conduct constitutes harassment when (1) submission to the conduct is made as either an explicit or implicit condition of employment; (2) submission or rejection of the conduct is used as the basis for an employment decision; or (3) the harassment interferes with work performance or creates an intimidating, hostile, or offensive work environment. Sexual Harassment – Sexual harassment consists of unwelcome sexual advances, requests for sexual favors, or verbal, visual, or physical conduct pertaining to a person’s sex (including pregnancy, childbirth, breastfeeding or related medical conditions) and/or of a sexual nature, when submission to such conduct is committed by a supervisor, co-worker, or a non-employee, in the work setting, under any of the following conditions: 1. Submission to the conduct is explicitly or implicitly made a term or condition of employment, progress, or participation in a District employment activity; or 2. Submission to, or rejection of, the conduct by the individual is used as the basis of employment decision(s) affecting the individual; or 3. The conduct has the purpose or effect of having a negative impact upon the individual's work performance or of creating an intimidating, hostile, or offensive work environment. Examples of actions that might constitute sexual harassment, include but are not limited to: OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, AND HARASSMENT, RETALIATION AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 1/4/17 3/4/15 Page 3 of 8 1. Unwelcome verbal conduct such as sexual flirtations or propositions; graphic comments; overly personal conversations; pressure for sexual activity; sexual jokes or stories; unwelcome sexual slurs; epithets; threats; innuendoes; derogatory comments; sexual descriptions; degrading comments; or the spreading of sexual rumors. 2. Unwelcome visual conduct such as drawings, pictures, photographs, or gestures; sexual emails; display of sexually explicit or suggestive objects. 3. Unwelcome physical conduct such as massaging, rubbing, grabbing, fondling, stroking, brushing of the body; touching in an unwanted and/or sexual manner; cornering, blocking, leaning on or over, or impeding normal walking, movements, or standing. 4. Threats and demands to submit to sexual requests as a condition of continued employment, condition for advancement in pay, position or authority or to avoid an adverse consequence, and offers of employment benefits in return for sexual favors. Two general categories of sexual harassment exist: (1) Quid pro quo, meaning "this for that" such as submission to sexual conduct as a condition of employment, benefits or terms and conditions of employment, and (2) Hostile work environment, meaning the sexual conduct is so severe, persistent, or pervasive that it creates an intimidating, demeaning, hostile, or offensive environment that unreasonably interferes with an employee’s job performance. Protected Class – Any class of persons who share a common sex, race, color, religious creed including religious dress and grooming practices, national origin, ancestry, physical or mental disability, medical condition, genetic information, marital status, age, sexual orientation, military or veteran status or any other “protected class” recognized by federal, state or local laws. For purposes of this definition, “sex” includes gender, gender identity, gender OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, AND HARASSMENT, RETALIATION AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 1/4/17 3/4/15 Page 4 of 8 expression, sex stereotype, transgender, pregnancy, childbirth, breastfeeding, or a pregnancy-related or childbirth-related medical condition. Retaliation – Any decision or action that is based on the fact that a District employee, unpaid intern, or volunteer, job applicant, or person providing services pursuant to a contract with the District has previously complained of Ddiscrimination, Hharassment, or Rretaliation prohibited by this Policy (regardless of whether a formal complaint has been made) or has provided evidence in the investigation of another District employee’s, unpaid intern’s, or volunteer’s, job applicant’s or person providing services pursuant to a contract with the District’s complaint under this Policy, made for the purpose of adversely affecting the employee’s, unpaid intern’s, or volunteer’s, job applicant or person providing services pursuant to a contract with the District’s conditions of employment, terms of employment, or work environment. Sexual Harassment – A form of harassment that is based on an employee’s, unpaid intern’s, or volunteer’s gender but which objectively and subjectively creates an adverse impact on the employee, unpaid intern, or volunteer regardless of the purpose or intent of the alleged harasser. POLICY The District is committed to providing a work environment free of unlawful Ddiscrimination, Hharassment, or Rretaliation against those who report Ddiscrimination or Hharassment. Discrimination or Hharassment based on sex (including gender, gender identity, gender expression, sex stereotype, transgender, pregnancy, childbirth, breastfeeding, or related medical condition), race, color, religious creed including religious dress and grooming practices, national origin, ancestry, physical or mental disability, medical condition, genetic information, marital status, age, sexual orientation, military or veteran status or any other basis protected by federal, state or local law is prohibited. Discrimination or Hharassment based on the perception that a person has any of those the OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, AND HARASSMENT, RETALIATION AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 1/4/17 3/4/15 Page 5 of 8 aforementioned characteristics, or is associated with a person who has or is perceived as having any of those the aforementioned characteristics, is prohibited. Retaliation against any person who complains of unlawful Ddiscrimination or Hharassment or who provides evidence relating to such a complaint, is prohibited. This Policy applies to all terms and conditions of employment, including, but not limited to: hiring, placement, advancement, promotion, disciplinary action, layoff, recall, transfer, leave of absence, compensation and training. It applies to everyeach District employee including management, regular, temporary or contract employees, members of the Board of Directors, unpaid interns, volunteers, job applicants and to persons providing services pursuant to a contract all vendors conducting business with the District. Similarly, the District will not tolerate Ddiscrimination or Hharassment by its employees, unpaid interns, volunteers, or non-employees with whom the District has a business, service or professional relationship. The District will also take reasonable steps attempt to protect employees, unpaid interns, and volunteers from Hharassment by non-employees in the workplace. Training will be provided to management and the Board of Directors as required by law. COMPLAINT PROCEDURE An employee, unpaid intern, volunteer, or job applicant who believes he or she has been the victim of Ddiscrimination, Hharassment, or Rretaliation by a District employee, a member of the Board of Directors, or a person providing services pursuant to a contract with the District vendor may make a complaint verbally, or in writing by completing the District’s Discrimination and Harassment Complaint Form. An employee, unpaid intern, or volunteer may make a complaint to any of the following:  Human Resources;  Any supervisor, manager, Assistant Department Chief, Department Chief, Assistant General Manager, or General Manager; OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, AND HARASSMENT, RETALIATION AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 1/4/17 3/4/15 Page 6 of 8  Complaints against the General Manager should be directed to the President of the Board of Directors. Job Aapplicants, or persons providing services pursuant to a contract with the District may make a complaint to any of the following:  Human Resources or;  General Manager. Any person described above shall forward each written Ddiscrimination complaint to the General Manager or designee immediately uponof receiving the complaint or having knowledge of the complaint. If a complaint is made verbally, the person receiving the complaint shall notify Human Resources immediately. Every reported complaint of Ddiscrimination, Hharassment or Rretaliation will be investigated in a fair, timely and thoroughly manner and promptly. If any manager, supervisor, Assistant Department Chief, Department Chief, or Assistant General Manager becomes aware of or suspects Ddiscrimination, Hharassment, or Rretaliation against a District employee, unpaid intern, volunteer, job applicant, member of the Board, or person providing services pursuant to a contract with the District, or any allegation thereof, he/she must immediately notify the Human Resources Manager of the relevant facts and circumstances. The General Manager or designee may conduct the investigation of alleged Ddiscrimination, Hharassment, or Rretaliation, or may delegate responsibility for the investigation to another District management employee. If the complaint is against the General Manager, the President of the Board of Directors shall be responsible for conducting the investigation, assigning another management employee, or outside investigator, and overseeing the investigation. If the complaint is against the Board of Directors or one of its members, the General Manager shall be responsible for contracting with an outside investigator to conduct the investigation. The Board will take appropriate action based on the findings. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, AND HARASSMENT, RETALIATION AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 1/4/17 3/4/15 Page 7 of 8 During its investigation, the District shall take appropriate steps to protect the privacy of all parties involved and confidentiality will be maintained to the extent possible. However, this shall not be construed to justify refusing to inform a person who has been accused of violating this Policy of the identity of the complainant and witnesses against him/her. Reports of Ddiscrimination, Hharassment, or Rretaliation may not be made anonymously, but information regarding any report and subsequent investigation will be disseminated on a “need to know” basis. In the event that an investigation will take longer than 60 calendar days to complete, the investigator must notify the complainant of this fact prior to the expiration of 60 days and provide an anticipated completion date, in writing. If a finding is made that Ddiscrimination, Hharassment, or Rretaliation has occurred, the District shall take remedial action appropriate to the circumstances, which may include disciplinary action up to and including termination for an employee, separation from the internship or volunteer opportunity for an unpaid intern or volunteer who has violated this Policy, or sanctions for a person providing services pursuant to a contract with the District, vendor who has violated this Policy. Every District employee, unpaid intern, volunteer, job applicant, member of the Board of Directors, person providing services pursuant to a contract with the District, has a duty to participate in good faith in any investigation conducted under this Policy. Failure to participate in good faith is a ground for disciplinary action appropriate to the circumstances. All employees, unpaid interns, and volunteers, job applicants, members of the Board of Directors and persons providing services pursuant to a contract with the District are encouraged to report in good faith Ddiscrimination, Hharassment, or Rretaliation. The District will not tolerate Rretaliation against any employee, unpaid intern, or volunteer, job applicant, member of the Board of Directors, or person providing services pursuant to a contract with the District who makesing a OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, AND HARASSMENT, RETALIATION AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 1/4/17 3/4/15 Page 8 of 8 good faith complaint of Ddiscrimination, Hharassment or Rretaliation, or for cooperatesing in an investigation. However, reports made maliciously or in bad faith may subject an employee, unpaid intern, or volunteer, job applicant, member of the Board of Directors, or persons providing services pursuant to a contract with the District to disciplinary action appropriate to the circumstances up to and including termination for an employee, or separation from the internship or volunteer opportunity. for an unpaid intern or volunteer, or sanctions for a member of the Board of Directors or a person providing services pursuant to a contract with the District. The action of filingmaking a complaint with the District does not preclude a complainant from filing a complaint with the appropriate State or Federal agency. An employee, unpaid intern, volunteer, job applicant or a person providing services pursuant to a contract with the District For information as to where to file a claim, an employee may contact the Equal Employment Opportunity Commission at www.eeoc.gov or (213) 894-1000, or the Department of Fair Employment and Housing at www.dfeh.ca.gov or (800) 884-1684 to file a complaint, or for information relating to discrimination complaint procedures and requirements. POLICY HISTORY Human Resources Policy and Procedure, Effective August 4, 1993. Board Policy adopted October 11, 2005. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised ADA/FEHA Disability Policy 48 05/03/06 1/4/1701 /04/12 Page 1 of 2 PURPOSE To provide policies to encourage a bias free environment for disabled employees or for disabled persons who seek employment with the Otay Water District (District). STATEMENT OF POLICY It is the policy of the District not to discriminate on the basis of disability for employment or the provision of services. It is the intent of the District to provide disabled employees a bias free work environment, including prompt and equitable resolution of complaints alleging discrimination on the basis of a disability. The District will provide reasonable accommodation in compliance with the Americans with Disabilities Act (“ADA”) and the Fair Employment and Housing Act (“FEHA”) provided the requested accommodation does not create an undue hardship for the District or pose a direct threat to the health or safety of others in the workplace or to the requesting employee. POLICY General Provisions The District has a commitment to ensure equal opportunities for disabled District employees. Every reasonable effort will be made to provide an accessible work environment. The District will not discriminate against disabled employees or job applicants in its employment practices (e.g. hiring, training, testing, transfer, promotion, compensation, benefits, discipline, termination). Interactive Process When the District becomes aware of a possible need for accommodation, Tthe District will engage in the interactive process, as defined by the ADA and the FEHA, to determine whether an employee or job applicant or employee is able to perform his/her essential functions. As part of the interactive process, the District may invite the employee or job applicant and, if necessary, the employee or job applicant’s health care provider, to meet. The employee may choose to have a third party present for support as an observer. However, this person may not act as a representative or attempt to negotiate on behalf of the employee. During the interactive process the District will examine possible reasonable accommodations that would allow the employee or job applicant to continue to perform the essential functions in his/her position or, if appropriate, be otherwise employed by the District. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised ADA/FEHA Disability Policy 48 05/03/06 1/4/1701 /04/12 Page 2 of 2 Complaints Any District employee who believes that he/she has been discriminated against because of a physical or mental disability may file a discrimination complaint pursuant to the District’s Policy 47, entitled “Policy Against Discrimination, and Harassment, Retaliation and Complaint Procedure”. Any job applicant who believes that he/she has been discriminated against because of a physical or mental disability may file a discrimination complaint by writing a formal letter to the District’s Human Resources Manager. The action of filing a complaint with the District does not preclude a complainant from filing a complaint with the appropriate State or Federal agency. An employee or job applicant may contact the Americans with Disability Act at www.ada.gov or (800)514-0301, or the Department of Fair Employment and Housing at www.dfeh.ca.gov or (800) 884-1684 to file a complaint, or for information relating to discrimination complaint procedures and requirements. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 1/4/17 Page 1 of 7 PURPOSE The Otay Water District (“District”) disapproves of and will not tolerate unlawful discrimination or harassment of its employees, members of the Board of Directors, unpaid interns, volunteers, job applicants or persons providing services pursuant to a contract with the District, or retaliation against those who report such behavior. This policy sets forth a procedure for investigating and resolving internal complaints of discrimination, harassment, or retaliation. DEFINITIONS Discrimination – Any decision or action that is based on a District employee’s, unpaid intern’s, volunteer’s, job applicant’s, or person providing services pursuant to a contract with the District’s status as a member of a protected class that adversely affects the employee, unpaid intern, volunteer, job applicant, person providing services pursuant to a contract with the District, or his/her work conditions, terms of employment, or work environment. Harassment – Any decision or action that is based on a District employee’s, unpaid intern’s, volunteer’s, job applicant’s, or person providing services pursuant to a contract with the District’s status as a member of a protected class, made for the purpose or having the effect of adversely affecting that employee’s, unpaid intern’s, volunteer’s, job applicant’s or persons providing services pursuant to a contract with the District’s terms of employment, work conditions, or work environment. Harassment may include, but is not limited to:  Verbal conduct such as epithets, derogatory jokes or comments, slurs, or unwelcome invitations or comments;  Visual displays such as derogatory posters, photography, cartoons, drawings or gestures;  Physical conduct including assault, unwanted touching, intentionally blocking normal movement or interfering with work. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 1/4/17 Page 2 of 7 Such conduct constitutes harassment when (1) submission to the conduct is made as either an explicit or implicit condition of employment; (2) submission or rejection of the conduct is used as the basis for an employment decision; or (3) the harassment interferes with work performance or creates an intimidating, hostile, or offensive work environment. Sexual Harassment – Sexual harassment consists of unwelcome sexual advances, requests for sexual favors, or verbal, visual, or physical conduct pertaining to a person’s sex (including pregnancy, childbirth, breastfeeding or related medical conditions) and/or of a sexual nature, when submission to such conduct is committed by a supervisor, co-worker, or a non-employee, in the work setting, under any of the following conditions: 1. Submission to the conduct is explicitly or implicitly made a term or condition of employment, progress, or participation in a District employment activity; or 2. Submission to, or rejection of, the conduct by the individual is used as the basis of employment decision(s) affecting the individual; or 3. The conduct has the purpose or effect of having a negative impact upon the individual's work performance or of creating an intimidating, hostile, or offensive work environment. Examples of actions that might constitute sexual harassment, include but are not limited to: 1. Unwelcome verbal conduct such as sexual flirtations or propositions; graphic comments; overly personal conversations; pressure for sexual activity; sexual jokes or stories; unwelcome sexual slurs; epithets; threats; innuendoes; derogatory comments; sexual descriptions; degrading comments; or the spreading of sexual rumors. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 1/4/17 Page 3 of 7 2. Unwelcome visual conduct such as drawings, pictures, photographs, or gestures; sexual emails; display of sexually explicit or suggestive objects. 3. Unwelcome physical conduct such as massaging, rubbing, grabbing, fondling, stroking, brushing of the body; touching in an unwanted and/or sexual manner; cornering, blocking, leaning on or over, or impeding normal walking, movements, or standing. 4. Threats and demands to submit to sexual requests as a condition of continued employment, condition for advancement in pay, position or authority or to avoid an adverse consequence, and offers of employment benefits in return for sexual favors. Two general categories of sexual harassment exist: (1) Quid pro quo, meaning "this for that" such as submission to sexual conduct as a condition of employment, benefits or terms and conditions of employment, and (2) Hostile work environment, meaning the sexual conduct is so severe, persistent, or pervasive that it creates an intimidating, demeaning, hostile, or offensive environment that unreasonably interferes with an employee’s job performance. Protected Class – Any class of persons who share a common sex, race, color, religious creed including religious dress and grooming practices, national origin, ancestry, physical or mental disability, medical condition, genetic information, marital status, age, sexual orientation, military or veteran status or any other “protected class” recognized by federal, state or local laws. For purposes of this definition, “sex” includes gender, gender identity, gender expression, sex stereotype, transgender, pregnancy, childbirth, breastfeeding, or a pregnancy-related or childbirth-related medical condition. Retaliation – Any decision or action that is based on the fact that a District employee, unpaid intern, volunteer, job applicant, or person providing services pursuant to a contract with the District has previously complained of Discrimination, Harassment, or OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 1/4/17 Page 4 of 7 Retaliation prohibited by this Policy (regardless of whether a formal complaint has been made) or has provided evidence in the investigation of another District employee’s, unpaid intern’s, volunteer’s, job applicant’s or person providing services pursuant to a contract with the District’s complaint under this Policy, made for the purpose of adversely affecting the employee’s, unpaid intern’s, volunteer’s, job applicant or person providing services pursuant to a contract with the District’s conditions of employment, terms of employment, or work environment. POLICY The District is committed to providing a work environment free of unlawful Discrimination, Harassment, or Retaliation against those who report Discrimination or Harassment. Discrimination or Harassment based on sex (including gender, gender identity, gender expression, sex stereotype, transgender, pregnancy, childbirth, breastfeeding, or related medical condition), race, color, religious creed including religious dress and grooming practices, national origin, ancestry, physical or mental disability, medical condition, genetic information, marital status, age, sexual orientation, military or veteran status or any other basis protected by federal, state or local law is prohibited. Discrimination or Harassment based on the perception that a person has any of the aforementioned characteristics, or is associated with a person who has or is perceived as having any of the aforementioned characteristics, is prohibited. Retaliation against any person who complains of unlawful Discrimination or Harassment or who provides evidence relating to such a complaint, is prohibited. This Policy applies to all terms and conditions of employment including, but not limited to: hiring, placement, advancement, promotion, disciplinary action, layoff, recall, transfer, leave of absence, compensation and training. It applies to every District employee including management, regular, temporary or contract employees, members of the Board of Directors, unpaid interns, volunteers, job applicants and to persons providing services pursuant to a contract with the District. Similarly, the District will not tolerate Discrimination or Harassment by its employees, OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 1/4/17 Page 5 of 7 unpaid interns, volunteers, or non-employees with whom the District has a business, service or professional relationship. The District will also take reasonable steps to protect employees, unpaid interns, and volunteers from Harassment by non-employees in the workplace. Training will be provided to management and the Board of Directors as required by law. COMPLAINT PROCEDURE An employee, unpaid intern, volunteer, or job applicant who believes he or she has been the victim of Discrimination, Harassment, or Retaliation by a District employee, a member of the Board of Directors, or a person providing services pursuant to a contract with the District may make a complaint verbally, or in writing by completing the District’s Discrimination and Harassment Complaint Form. An employee, unpaid intern, or volunteer may make a complaint to any of the following:  Human Resources;  Any supervisor, manager, Assistant Department Chief, Department Chief, Assistant General Manager, or General Manager;  Complaints against the General Manager should be directed to the President of the Board of Directors. Job applicants, or persons providing services pursuant to a contract with the District may make a complaint to any of the following:  Human Resources or;  General Manager. Any person described above shall forward each written Discrimination complaint to the General Manager or designee immediately upon receiving the complaint or having knowledge of the complaint. If a complaint is made verbally, the person receiving the complaint shall notify Human Resources immediately. Every reported complaint of Discrimination, Harassment or Retaliation will be investigated in a fair, timely and thorough manner. If any manager, supervisor, Assistant Department Chief, OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 1/4/17 Page 6 of 7 Department Chief, or Assistant General Manager becomes aware of or suspects Discrimination, Harassment, or Retaliation against a District employee, unpaid intern, volunteer, job applicant, member of the Board, or person providing services pursuant to a contract with the District, he/she must immediately notify the Human Resources Manager of the relevant facts and circumstances. The General Manager or designee may conduct the investigation of alleged Discrimination, Harassment, or Retaliation, or may delegate responsibility for the investigation to another District management employee. If the complaint is against the General Manager, the President of the Board of Directors shall be responsible for conducting the investigation, assigning another management employee, or outside investigator, and overseeing the investigation. If the complaint is against the Board of Directors or one of its members, the General Manager shall be responsible for contracting with an outside investigator to conduct the investigation. The Board will take appropriate action based on the findings. During its investigation, the District shall take appropriate steps to protect the privacy of all parties involved and confidentiality will be maintained to the extent possible. However, this shall not be construed to justify refusing to inform a person who has been accused of violating this Policy of the identity of the complainant and witnesses against him/her. Reports of Discrimination, Harassment, or Retaliation may not be made anonymously, but information regarding any report and subsequent investigation will be disseminated on a “need to know” basis. If a finding is made that Discrimination, Harassment, or Retaliation has occurred, the District shall take remedial action appropriate to the circumstances, which may include disciplinary action up to and including termination for an employee, separation from the internship or volunteer opportunity for an unpaid intern or volunteer who has violated this Policy, or sanctions for a person providing services pursuant to a contract with the District, who has violated this Policy. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject: POLICY AGAINST DISCRIMINATION, HARASSMENT, RETALIATION AND COMPLAINT PROCEDURE Policy Number Date Adopted Date Revised 47 10/11/05 1/4/17 Page 7 of 7 Every District employee, unpaid intern, volunteer, job applicant, member of the Board of Directors, person providing services pursuant to a contract with the District, has a duty to participate in good faith in any investigation conducted under this Policy. Failure to participate in good faith is a ground for disciplinary action appropriate to the circumstances. All employees, unpaid interns, volunteers, job applicants, members of the Board of Directors and persons providing services pursuant to a contract with the District are encouraged to report in good faith Discrimination, Harassment, or Retaliation. The District will not tolerate Retaliation against any employee, unpaid intern, volunteer, job applicant, member of the Board of Directors, or person providing services pursuant to a contract with the District who makes a good faith complaint of Discrimination, Harassment or Retaliation, or cooperates in an investigation. However, reports made maliciously or in bad faith may subject an employee, unpaid intern, volunteer, job applicant, member of the Board of Directors, or persons providing services pursuant to a contract with the District to disciplinary action appropriate to the circumstances up to and including termination for an employee, separation from the internship or volunteer opportunity for an unpaid intern or volunteer, or sanctions for a member of the Board of Directors or a person providing services pursuant to a contract with the District. The action of filing a complaint with the District does not preclude a complainant from filing a complaint with the appropriate State or Federal agency. An employee, unpaid intern, volunteer, job applicant or a person providing services pursuant to a contract with the District may contact the Equal Employment Opportunity Commission at www.eeoc.gov or (213) 894-1000, or the Department of Fair Employment and Housing at www.dfeh.ca.gov or (800) 884-1684 to file a complaint, or for information relating to discrimination complaint procedures and requirements. POLICY HISTORY Human Resources Policy and Procedure, Effective August 4, 1993. Board Policy adopted October 11, 2005. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised ADA/FEHA Disability Policy 48 05/03/06 1/4/17 Page 1 of 2 PURPOSE To provide policies to encourage a bias free environment for disabled employees or for disabled persons who seek employment with the Otay Water District (District). STATEMENT OF POLICY It is the policy of the District not to discriminate on the basis of disability for employment or the provision of services. It is the intent of the District to provide disabled employees a bias free work environment, including prompt and equitable resolution of complaints alleging discrimination on the basis of a disability. The District will provide reasonable accommodation in compliance with the Americans with Disabilities Act (“ADA”) and the Fair Employment and Housing Act (“FEHA”) provided the requested accommodation does not create an undue hardship for the District or pose a direct threat to the health or safety of others in the workplace or to the requesting employee. POLICY General Provisions The District has a commitment to ensure equal opportunities for disabled District employees. Every reasonable effort will be made to provide an accessible work environment. The District will not discriminate against disabled employees or job applicants in its employment practices (e.g. hiring, training, testing, transfer, promotion, compensation, benefits, discipline, termination). Interactive Process When the District becomes aware of a possible need for accommodation, the District will engage in the interactive process, as defined by the ADA and the FEHA, to determine whether an employee or job applicant is able to perform his/her essential functions. As part of the interactive process, the District may invite the employee or job applicant and, if necessary, the employee or job applicant’s health care provider, to meet. The employee may choose to have a third party present for support as an observer. However, this person may not act as a representative or attempt to negotiate on behalf of the employee. During the interactive process the District will examine possible reasonable accommodations that would allow the employee or job applicant to continue to perform the essential functions in his/her position or, if appropriate, be otherwise employed by the District. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised ADA/FEHA Disability Policy 48 05/03/06 1/4/17 Page 2 of 2 Complaints Any District employee who believes that he/she has been discriminated against because of a physical or mental disability may file a discrimination complaint pursuant to the District’s Policy 47, entitled “Policy Against Discrimination, Harassment, Retaliation and Complaint Procedure”. Any job applicant who believes that he/she has been discriminated against because of a physical or mental disability may file a discrimination complaint by writing a formal letter to the District’s Human Resources Manager. The action of filing a complaint with the District does not preclude a complainant from filing a complaint with the appropriate State or Federal agency. An employee or job applicant may contact the Americans with Disability Act at www.ada.gov or (800)514-0301, or the Department of Fair Employment and Housing at www.dfeh.ca.gov or (800) 884-1684 to file a complaint, or for information relating to discrimination complaint procedures and requirements. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: February 1, 2017 SUBMITTED BY: Rita Bell, Finance Manager PROJECT: DIV. NO. All APPROVED BY: Joseph R. Beachem, Chief Financial Officer German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Financing the Campo Road Sewer Main Replacement Project through State Water Resources Control Board, California’s Clean Water State Revolving Fund (CWSRF) Program GENERAL MANAGER’S RECOMMENDATION: Authorize the submittal of the Financial Security Package to the State Water Resources Control Board, California’s Clean Water State Revolving Fund (CWSRF) Program, for the purpose of applying for $7,750,000 in debt financing of the Campo Road Sewer Replacement Project; and that the Board Adopt Resolution 4320, to finance the cost of constructing and reconstructing certain public facilities and improvements; Resolution 4321, to file an application for a financing agreement from the State Water Resources Control Board (SWRCB); and Resolution 4322, to pledge sewer operating revenues and/or replacement reserves for the Campo Road Sewer Main Replacement Project; which are required as part of the Financial Security Package at the time the application is submitted to CWSRF. COMMITTEE ACTION: See Attachment A. 2 PURPOSE: That the Board of Directors authorize staff to submit the Financial Security Package and approve the necessary resolutions to allow the $7,750,000 debt financing of the Campo Road Sewer Main Replacement Project (Campo Road Project) through the CWSRF. BACKGROUND: The CWSRF uses federal and state funds to make loans to publicly owned treatment works for the construction of wastewater treatment and sewage collection systems, water recycling facilities, the implementation of nonpoint source water quality control projects, and other eligible projects. The intention of CWSRF is to provide financial assistance in perpetuity. It offers below-market rate financing, i.e. half of the most recent General Obligation (GO) bond rate at time of funding approval. The most current CWSRF interest rate based on a bond sale date of March 8, 2016 is 1.7%. In 1990, the District used the CWSRF program to debt finance a $5 million upgrade and expansion of the Ralph W. Chapman Water Recycling Facility, which has been repaid. For future projects, financing terms can go up to 30 years or the useful life of the funding of the project, and loan repayment begins one year after completion of construction. The CWSRF offers flexibility and reduces paperwork duplication for financing multiple projects. This financing vehicle is something the District should always consider for eligible projects because of the favorable terms. The District’s $8.5 million Campo Road Project meets the eligibility requirements of the CWSRF. The project spans over a period of four years from FY 2016 to FY 2019, and will upgrade the sewer main capacity by replacing approximately 11,550 feet of existing 10-inch PVC sewer main, 450 feet of 10-inch reinforced polymer mortar pipe sewer main, and 50 feet of 15-inch sewer main. The existing sewer main is under-sized and must be replaced to increase capacity. Portions of the sewer main are located in sensitive habitat areas making it difficult to access for maintenance. ANALYSIS: Based on CWSRF current interest rate of 1.7% and a GO bond rate of 3.3%, for a $7.5 million loan with 30-year term, it has the potential to save the District $3.7 million in interest cost. On top of the interest savings, there would be additional savings of $145,000 on legal fees and out-of-pocket expenses. Unlike financing through Certificates of Participation, financing through the CWSRF does not 3 require a Financial Advisor, Bond Counsel and Disclosure Counsel, but just a legal opinion provided by our legal counsel to approve financing. Because of the aging infrastructure, the sewer CIP expenditures over the next six years will be $3.7 million in betterment projects and $13.9 million in replacement projects, totaling $17.6 million. (See table below.) FY17 FY18 FY19 FY20 FY21 FY22 Total Sewer Betterment CIP 26 2,406 1,279 1 1 1 3,714 Sewer Replacement CIP 1,585 4,455 3,660 1,793 940 1,550 13,983 Total Sewer CIP 1,611 6,861 4,939 1,794 941 1,551 17,697 Additionally, the District’s Metro expenditures are estimated to increase by approximately $1 million per year in order to fund Phase 1 of the City of San Diego’s Pure Water program. Because of this added operating expense, the anticipated general fund financing of the CIP will not be available. In addition, the sewer rates are expected to increase more than projected in order to support the Pure Water program. With no debt issuance, the sewer rates would have to spike to 18% in each of the next four years, and then 13% in each of the following two years. Should the District choose not to raise the rate more than the planned increases of 3% in FY 18 to FY 20 and 2% in FY 21 and 22, reserves would fall into deficits by FY 2020 as shown in the table below. Reserve Balances FY17 FY18 FY19 FY20 FY21 FY22 Sewer General Fund 609 221 (147) (497) (844) (1,206) Sewer Betterment Fund 1,204 (1,173) (2,420) (2,391) (2,362) (2,333) Sewer Replacement Fund 11,253 6,982 3,481 1,822 901 (647) Total Reserves 13,065 6,030 915 (1,065) (2,305) (4,187) By issuing debt in the amount of $7.75 million, the sewer rates can gradually increase about 4.6% per year. This would allow all reserves to stay on target in each year as shown in the table below. Reserve Balances FY17 FY18 FY19 FY20 FY21 FY22 Sewer General Fund 609 875 893 911 931 952 Sewer Betterment Fund 1,204 640 1 1 1 1 Sewer Replacement Fund 11,253 1,229 7,803 5,668 4,350 2,490 Total Reserves 13,065 2,744 8,696 6,580 5,281 3,442 4 Staff believes the Campo Road Project is a good match for issuing debt. A 30-year term with historically low interest rates allows the District to spread the cost more evenly to match the life of the asset. FISCAL IMPACT: Joe Beachem, Chief Financial Officer Borrowing $7.75 million from the Clean Water State Revolving Fund will provide debt funding for the Campo Road Sewer Replacement project and allow the sewer operating and capital reserve levels to be maintained in accordance with the Board’s Reserve Policy. The debt will have a 30-year maturity. With an estimated interest cost of 1.7%, the annual debt service on the bonds is projected to be approximately $332,000. STRATEGIC GOAL: The District ensures its continued financial health through long-term financial planning and debt planning. LEGAL IMPACT: None. Attachments: Attachment A – Committee Action Form Attachment B – CWSRF Financial Security Package Attachment C - Resolution 4320, Finance Cost of Project Attachment D - Resolution 4321, Application for Financing Agreement Attachment E - Resolution 4322, Pledged Revenues and/or Reserves ATTACHMENT A SUBJECT/PROJECT: Financing the Campo Road Sewer Main Replacement Project through California’s Clean Water State Revolving Fund (CWSRF) Program COMMITTEE ACTION: The Finance, Administration, and Communications Committee reviewed this item at a meeting held on December 13, 2016 and the following comments were made:  Staff is requesting that the Board authorize the submittal of the financial portion of an application for the debt financing of the Campo Road Sewer Replacement Project using a financial vehicle available through the State Water Resources Control Board (SWRCB) titled the Clean Water State Revolving Fund (CWSRF) Program.  The cost of the Campo Road Sewer Replacement Project is $8.5 million and the District is applying for $7,750,000 in debt financing through the CWSRF program.  The application requires that the board adopt the three resolutions attached to staffs’ report which will be submitted with the District’s application.  Staff reviewed the information in the staff report.  In response to an inquiry from the Committee, staff stated that the SWRCB had indicated that they have already selected all the projects that will receive funding in FY 2017 and that their focus is on recycled water projects due to the drought. While this funding preference will not benefit the District, staff would like to pursue funding through this application for funds allocated for 2018. The District has decided to apply for the maximum that can be acquired for this sewer project because the Metro Commission costs are expected to go up another $1 million a year due to the City of San Diego’s Pure Water Program.  Staff indicated in response to an inquiry from the committee that they would look to see if there are other future eligible projects that the District could seek funding through this program.  Staff noted that if the District is not successful in acquiring funding through the program, it can seek traditional financing of this sewer project and other projects.  The committee inquired if the District had to seek traditional financing, what the current interest rate might be. Staff is working with the District’s Financial Advisor to prepare comparisons of alternate financing options.  In response to another inquiry from the Committee, staff indicated that the rate increase for sewer, with the existing planned $3 million bond issuance, were estimated to be 3% in FYs 2016 to 2020 and 2% in FYs 2021 and 2022. If the District is successful in acquiring the $7.75 million from the CWSRF Program and with the Pure Water Program increased cost of $1 million per year, the estimated sewer rate increase would be 4.6% for all six (6) FYs (2016 to 2022).  Staff is studying the cost associated with expanding the District’s wastewater treatment plant (Ralph W. Chapman Water Recycling Facility) to determine if it would be more cost effective for the District to handle its own sewer treatment. It was noted that the District, however, cannot fully avoid the Metro Commission as the Regional Water Quality Control Board requires that agencies have a back-up for emergency flows.  The Committee suggested that staff look for the longest possible maturity for debt issuances because of the current favorable interest rate environment. However, if long term interest rates rise and there is a big differential between long term and short term interest rates, then it would make sense to refinance the remaining years as short term rates are more favorable. The committee asked that staff monitor the District’s debt issuances for such situations.  Staff indicated in response to an inquiry from the committee that there is no set date when the District can expect to be notified if its application for funding is successful. The SWRCB did indicate that there is a preliminary acceptance and a final award notification. If an agency receives a preliminary acceptance notification, then it is assured that it will receive the requested funding. Upon completion of the discussion, the committee supported staffs’ recommendation and presentation to the full board as an action item. STATE OF CALIFORNIA FINANCIAL ASSISTANCE APPLICATION STATE WATER RESOURCES CONTROL BOARD Clean Water State Revolving Fund Division of Financial Assistance Water Recycling Funding Program P. O. Box 944212, Sacramento, CA 94244-2120 Financial Assistance Application Page 1 of 11 Financial Security Package (Rev. 08/2015) FINANCIAL SECURITY PACKAGE Applicant (Entity) Name: Project Title: Contact Person: Phone: ( ) 1. Amount of Assistance Requested: $ 2. Term Requested: 20-Year 30-Year 3. Other Project Funding Sources Name and Type of Funding Sources Amount Applied Approved Received $ $ $ 4. Current Year Median Household Income: $ 5a. Current Year Estimated Population Served: 5b. Check box if less than 50% of residences are permanently occupied 6. Active Service Connections Not Applicable Connection Type Number of Connections Current Monthly Service Charge Projected Monthly Service Charge at Project Completion Average Monthly Billing (Last 12 months) Residential $ $ $ Commercial $ $ $ Industrial $ $ $ Other $ $ $ TOTAL $ $ $ Rate increase effective date for projected monthly service charges: 7. Projected Annual Operations and Maintenance Costs, Including amortized replacement costs (upon completion): $ 8. Discussion of Material Events, Material Obligation Conditions, and Any Debt Limit Identify any current prior material events such as bankruptcy, defaults, litigation, grand jury findings, unscheduled draws on reserve funds, substitution of insurers or their failure to perform, unscheduled draws on credit enhancements, actions taken in anticipation of filing Chapter 9, rating changes, relevant conditions in material obligations, and any local debt limit. State Use Only CWSRF Project # Project Manager Date Received Financial Assistance Application Page 2 of 11 Financial Security Package (Rev. 08/2015) ATTACHMENTS (Check the box next to each item attached to your application.) F1 – AUDITED FINANCIAL STATEMENTS (3 years) AND BUDGETS OR PROJECTIONS (2 years) F2 – TAX QUESTIONNAIRE F3 – REIMBURSEMENT RESOLUTION F4 – AUTHORIZING RESOLUTION F5 – RATE ADOPTION RESOLUTION F6 – PLEDGED REVENUES AND FUND(S) RESOLUTION F7 – RELATED DEBT (see Application Information & Instructions) F8 – NEW SPECIAL TAX, ASSESSMENT DISTRICT, OR SERVICE CHARGE PROJECTIONS (if applicable) F9 – RELEVANT SERVICE, MANAGEMENT, OPERATING, OR JOINT POWERS AGREEMENTS (if applicable) F10 – FUTURE CAPITAL NEEDS (if applicable) Financial Assistance Application Page 3 of 11 Financial Security Package (Rev. 08/2015) Attachment F2 STATE WATER RESOURCES CONTROL BOARD &/($1WATER STATE REVOLVING FUND PROGRAM TAX QUESTIONNAIRE (Version April 2015) LEGAL NAME OF APPLICANT State Use Only: CWSRF Project No. DATE/TIME REC’D BY SWRCB Instructions: Answer all and provide all information and documents requested. Begin typing in the shaded area and the space will enlarge to accommodate the information that is typed. In lieu of typing in the shaded areas for any question, a separate page may be attached to this Tax Questionnaire or an electronic file in Word format may be attached. Certain Definitions: As used in this Tax Questionnaire, "Project" means the facilities and/or capital improvements that you described in the Financial Assistance Application submitted to the State Water Board and constitutes those costs that will be funded by the State Water Board under the Financing Agreement (a template Financing Agreement can be found on the State Water Board’s website), “Governmental Entity” means a state, city, county, town, public school district, other special district or joint powers authority, and "Non-Governmental Entity" means any person, partnership, corporation or other organization that is not organized as a state, city, county, town, public school district, other special district or joint powers authority. The federal government constitutes a Non-Governmental Entity. A Section 501(c)(3) organization constitutes a Non-Governmental Entity. 1. Briefly describe the Project, its functions and its principal components. 2. Indicate by principal components your current estimates of the costs of the Project, as follows: a. Construction costs ............................................................................................... $_________________________ b. Equipment costs .................................................................................................. $_________________________ c. Land Purchase ..................................................................................................... $_________________________ d. Rehabilitation or renovation of facilities ............................................................. $_________________________ e. Site preparation costs .......................................................................................... $_________________________ f. Architectural/engineering, design and planning costs ......................................... $_________________________ g. Engineering and administrative costs during construction .................................. $_________________________ h. Surveys ................................................................................................................ $_________________________ i. Legal fees ............................................................................................................ $_________________________ j. Financing costs .................................................................................................... $_________________________ k. Commitment fees and deposits ........................................................................... $_________________________ l. Other construction costs (please specify) ............................................................ $_________________________ m. Other planning/design costs (please specify) ...................................................... $_________________________ 3. Will any portion of the financing provided under the Financing Agreement be used to refinance other debt(s) (e.g., including any bonds, notes, leases or commercial paper) relating to the Project? Yes No Not Applicable 4. If you answered “yes” to Question #3, please state the amount of financing provided under the Financing Agreement that is expected to be used for refinancing purposes. $_______________________ Financial Assistance Application Page 4 of 11 Financial Security Package (Rev. 08/2015) 5. If you answered “yes” to Question #3, please specify the date(s) on which the financing provided under the Financing Agreement will be used to redeem other debt(s) relating to the Project. 6. If you answered “yes” to Question #3, please provide the following information: a. Name of the existing indebtedness to be refinanced: __________________________________________________ b. Issue date of the existing indebtedness: ____________________________________________________________ c. Par amount of the existing indebtedness: ___________________________________________________________ d. Purpose(s) of the existing indebtedness: ___________________________________________________________ e. Whether the existing indebtedness is immediately prepayable: _________________________________________ f. Whether the interest on the existing indebtedness is federally taxable or tax-exempt: _______________________ 7. If you answered “yes” to Question #3, are any proceeds of the other debt(s) relating to the Project still unspent? Yes No Not Applicable If yes, please identify the amounts and the funds or accounts in which such proceeds are on deposit. 8. If you answered “yes” to Question #3, was the other debt(s) to be refinanced with the financing provided under the Financing Agreement used to refinance other prior debt(s) relating to the Project? Yes No Not Applicable If yes, please provide the name of the original indebtedness, the issue date of the original indebtedness, the par amount of the original indebtedness, the purpose(s) of the original indebtedness, and whether the interest on the original indebtedness was federally taxable or tax-exempt. 9. Will any portion of the financing provided under the Financing Agreement be used for new financing of the Project? Yes No Not Applicable 10. If you answered “yes” to Question #9, please provide the dates of expected commencement and completion of construction of the Project. Expected Commencement Date of Project: ............................. Expected Completion Date of Project: .................................... 11. If you answered “yes” to Question #9, please state the amount of the financing provided under the Financing Agreement that is expected to be used for new financing purposes. If you answered “no” to Question #9, skip to Question #18 below. $__________________________ 12. If you answered “yes” to Question #9, please state the amount of Project costs to be newly financed under the Financing Agreement that are expected to be paid within the following periods of time: Please respond to this question using the expected initiation date of construction. Project costs to be spent within 6 months .......................................................................... $_______________________ Project costs to be spent within 12 months (cumulative) .................................................. $_______________________ Project costs to be spent within 18 months (cumulative) .................................................. $_______________________ Project costs to be spent within 24 months (cumulative) .................................................. $_______________________ Project costs to be spent within 30 months (cumulative) .................................................. $_______________________ Project costs to be spent within 36 months (cumulative) .................................................. $_______________________ Project costs to be spent beyond 36 months (cumulative) ................................................. $_______________________ Financial Assistance Application Page 5 of 11 Financial Security Package (Rev. 08/2015) 13. If you answered “yes” to Question #9, have you paid any costs of the Project prior to the date hereof? Yes No Not Applicable For each Project cost that has been previously paid, please provide an itemization of the following: a. Amount of the payment .............................................................................................. b. Purpose of the payment .............................................................................................. c. Date of the Payment ................................................................................................... d. Source of payment of such cost (e.g., revenue, federal or state grants, other financing, internal loan) ................................................ 14. If you answered "yes" to Question #13, have you at any time adopted a resolution or other official action (e.g., a so-called “reimbursement resolution”) relating to your intent to finance the Project with financial assistance from the State Water Board or other indebtedness? Yes No Not Applicable If yes, please identify the date of such resolution or other document and attach a copy. 15. If you answered “yes” to Question #9, will any portion of the financing provided under the Financing Agreement be used to pay administrative or engineering expenses directly relating to the construction of the Project? Yes No Not Applicable If yes, please state the amount expected to be so used and provide details as to its calculation (e.g., based on actual costs or a percentage of construction). 16. If you answered “yes” to Question #15, will any portion of the administrative or engineering expenses directly relating to the construction of the Project be incurred by the staff of the Applicant? Yes No Not Applicable If yes, please state the amount expected to be so used and provide details as to its calculation (e.g., based on actual costs or a percentage of construction). 17. If you answered "yes" to Question #16, will the administrative or engineering expenses directly relating to the construction of the Project be tracked by an accounting system, such as a cost accounting system, that will allow them to be differentiated from other charges for other work done by the applicant’s staff? Yes No Not Applicable If yes, please specify how charges will be tracked. 18. Does any Non-Governmental Entity own, or do you anticipate any Non-Governmental Entity owning, any portion of the Project at any time during the term of the financing? Yes No Not Applicable If yes, identify the Non-Governmental Entity and provide all available details with respect to its ownership interest. 19. Does any Non-Governmental Entity lease, or do you anticipate any Non-Governmental Entity leasing, any portion of the Project at any time during the term of the financing? Yes No Not Applicable If yes, identify the Non-Governmental Entity and provide all available details with respect to its lease interest. Financial Assistance Application Page 6 of 11 Financial Security Package (Rev. 08/2015) 20. Have you entered, or do you anticipate entering, into any inter-municipal contract or agreement(s) with any Governmental Entity with respect to the Project (or any portion of the Project) during the term of the financing? Yes No Not Applicable If yes, please describe the purpose of each such agreement, and attach a copy of any existing or contemplated agreement. 21. Have you entered, or do you anticipate entering, into any contract or agreement any Non-Governmental Entity contracting to operate, manage or provide any exclusive services with respect to the Project (or any portion of the Project) during the term of the financing? Yes No Not Applicable If yes, please identify the Non-Governmental Entity and explain the arrangement. If an operations, management or exclusive services contract currently exists, please attach a copy. Contracts that relate solely to services that are merely incidental to the primary use of the Project need not be listed. Examples of incidental services are contracts for janitorial services, office equipment repairs or billing services. If you are uncertain as to whether the contract is incidental or not, please describe the contract and the services provided thereunder. 22. Does the Project provide, or do you anticipate the Project providing, water or wastewater services to any Non-Governmental Entity other than on the basis of standard rates and charges which are generally applicable and uniformly applied and are adjusted from time to time by the Applicant? Yes No Not Applicable If there are or will be any non-standard rates and charges, describe the rate structure, focusing on any special rate agreements or charges for specific entities. An example of a non-standard rate is an industrial user paying a flat fee in a system where the other users pay a rate based on usage. 23. Does any Non-Governmental Entity have, or do you anticipate any Non-Governmental Entity having, special priority rights or other preferential rights to use the Project or the services of the Project pursuant to any contractual or other arrangement? Yes No Not Applicable If yes, please identify the Non-Governmental Entity, and describe the special priority or preferential right(s). 24. Are the functions and services of the entire Project available, and do you expect the functions and services of the entire Project will be available, for use by the general public on a first-come, first-served basis? Yes No Not Applicable If no, please explain and describe the portion of the Project that is not, or will not, be available for use by the general public. For example, municipal water and wastewater systems used for residential, commercial, governmental and business purposes are available for use by the general public; a specialized pollution control facility immediately adjacent to a private business that is the sole user of the facility is not available for use by the general public. 25. Have you entered, or do you anticipate entering, into a “take” or “take-or-pay” contract with any Non-Governmental Entity for use of any portion of the Project or the services of the Project? Yes No Not Applicable If yes, please identify the Non-Governmental Entity, and describe the arrangement therewith. If a take or a take-or-pay contract currently exists, please attach a copy. Financial Assistance Application Page 7 of 11 Financial Security Package (Rev. 08/2015) 26. Will any Non-Governmental Entity guarantee or otherwise be directly obligated to repay the financial assistance provided under the Financing Agreement? Yes No Not Applicable If yes, please identify the Non-Governmental Entity, and describe the guarantee arrangement therewith. 27. Have you received, or do you expect to receive, any grant or other form of assistance for financing of any portion of the Project from the State of California, the federal government or any other entity or person? Yes No Not Applicable If yes, please explain. 28. Will any portion of the financing projected under the Financing Agreement be used as a substitute for other funds which were otherwise to be used as a source of financing and which have been used or will be used to acquire, directly or indirectly, other investment property? Yes No Not Applicable If yes, please explain. APPLICANT ACKNOWLEDGEMENT AND SIGNATURE I hereby certify that I am an authorized representative of the Applicant, and that I am authorized by the Applicant to execute this Tax Questionnaire. I am charged with the responsibility to perform such acts as are necessary and proper for the financing, construction, acquisition and/or improvement of the Project, and am acting for and on behalf of the Applicant in executing this Tax Questionnaire. I certify that I am familiar with the Project and that all information contained herein is true, correct and complete to the best of my knowledge. I am not aware of any facts or circumstances that would cause me to question the accuracy or reasonableness of any information contained in these responses or attached documentation. I understand that the foregoing information and attached documentation will be relied upon by the State Water Board and their counsel, in providing financing with respect to the Project. AUTHORIZED REPRESENTATIVE SIGNATURE PRINT NAME AND TITLE DATE Financial Assistance Application Page 8 of 11 Financial Security Package (Rev. 08/2015) Attachment F3 REIMBURSEMENT RESOLUTION WHEREAS, the __________________________________ (the "Agency") desires to finance the costs of (Agency Name) constructing and/or reconstructing certain public facilities and improvements relating to its water and wastewater system, including certain treatment facilities, pipelines and other infrastructure (the "Project"); and WHEREAS, the Agency intends to finance the construction and/or reconstruction of the Project or portions of the Project with moneys ("Project Funds") provided by the State of California, acting by and through the State Water Resources Control Board (State Water Board); and WHEREAS, the State Water Board may fund the Project Funds with proceeds from the sale of obligations the interest upon which is excluded from gross income for federal income tax purposes (the "Obligations"), and WHEREAS, prior to either the issuance of the Obligations or the approval by the State Water Board of the Project Funds the Agency desires to incur certain capital expenditures (the "Expenditures") with respect to the Project from available moneys of the Agency; and WHEREAS, the Agency has determined that those moneys to be advanced on and after the date hereof to pay the Expenditures are available only for a temporary period and it is necessary to reimburse the Agency for the Expenditures from the proceeds of the Obligations. NOW, THEREFORE, THE AGENCY DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS: SECTION 1. The Agency hereby states its intention and reasonably expects to reimburse Expenditures paid prior to the issuance of the Obligations or the approval by the State Water Board of the Project Funds. SECTION 2. The reasonably expected maximum principal amount of the Project Funds is $___________________. {Remove this Note when completing the Resolution: Please include the maximum reasonable project amount. Your SRF financing agreement will not exceed this amount under any circumstances.} SECTION 3. This resolution is being adopted no later than 60 days after the date on which the Agency will expend moneys for the construction portion of the Project costs to be reimbursed with Project Funds. SECTION 4. Each Agency expenditure will be of a type properly chargeable to a capital account under general federal income tax principles. SECTION 5. To the best of our knowledge, this Agency is not aware of the previous adoption of official intents by the Agency that have been made as a matter of course for the purpose of reimbursing expenditures and for which tax-exempt obligations have not been issued. SECTION 6. This resolution is adopted as official intent of the Agency in order to comply with Treasury Regulation §1.150-2 and any other regulations of the Internal Revenue Service relating to the qualification for reimbursement of Project costs. SECTION 7. All the recitals in this Resolution are true and correct and this Agency so finds, determines and represents. AYES: _______ NOES: _______ ABSENT: _______ CERTIFICATION I do hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted at a meeting of the _____________________________________________ held on __________________. (Governing Board of the Agency) (Date) (Name, Signature, and Seal of the Clerk or Authorized Record Keeper of the Governing Board of the Agency) Financial Assistance Application Page 9 of 11 Financial Security Package (Rev. 08/2015) Attachment F4 AUTHORIZING RESOLUTION/ORDINANCE RESOLUTION NO: _____________________ WHEREAS __________________________RESOLVED BY THE ___________________________________ (insert appropriate findings) (insert name of Governing Board of the Entity) OF THE ________________________________________ (the “Entity”), AS FOLLOWS: (insert Entity name) The ________________________________________ (the “Authorized Representative”) or designee is (insert Title of Authorized Representative) hereby authorized and directed to sign and file, for and on behalf of the Entity, a Financial Assistance Application for a financing agreement from the State Water Resources Control Board for the planning, design, and construction of ____________________________________________________________ (the “Project”). (insert Project Name) This Authorized Representative, or his/her designee, is designated to provide the assurances, certifications, and commitments required for the financial assistance application, including executing a financial assistance agreement from the State Water Resources Control Board and any amendments or changes thereto. The Authorized Representative, or his/her designee, is designated to represent the Entity in carrying out the Entity’s responsibilities under the financing agreement, including certifying disbursement requests on behalf of the Entity and compliance with applicable state and federal laws. CERTIFICATION I do hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted at a meeting of the __________________________________________ held (insert name of Governing Board of the Entity) on ______________________. (Date) (Name, Signature, and Seal of the Clerk or Authorized Record Keeper of the Governing Board of the Agency) Financial Assistance Application Page 10 of 11 Financial Security Package (Rev. 08/2015) Attachment F6 PLEDGED REVENUES AND FUND(s) RESOLUTION WHEREAS _______________________________________________________________________ (insert appropriate findings regarding intent, authority, and procedure) _________________________________________________________________________________; THEREFORE BE IT RESOLVED, the __________________________________ (the “Entity”) hereby (insert Entity name) dedicates and pledges _______________________________________________________________ (insert exact name of revenue stream and designated fund containing those revenues) to payment of any and all Clean Water State Revolving Fund and/or Water Recycling Funding Program financing for __________________________________________________ (the “Project”). The (insert Project name and 4-digit CWSRF Project number) Entity commits to collecting such revenues and maintaining such fund(s) throughout the term of such financing and until the Entity has satisfied its repayment obligation thereunder unless modification or change is approved in writing by the State Water Resources Control Board. So long as the financing agreement(s) are outstanding, the Entity’s pledge hereunder shall constitute a lien in favor of the State Water Resources Control Board on the foregoing fund(s) and revenue(s) without any further action necessary. So long as the financing agreement(s) are outstanding, the Entity commits to maintaining the fund(s) and revenue(s) at levels sufficient to meet its obligations under the financing agreement(s). CERTIFICATION I do hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted at a meeting of the ___________________________________________________________________ held (insert name of Governing Board of the Entity) on ______________________. (Date) (Name, Signature, and Seal of the Clerk or Authorized Record Keeper of the Governing Board of the Agency) Financial Assistance Application Page 11 of 11 Financial Security Package (Rev. 08/2015) Attachment F7 RELATED DEBT The following related debts are senior to the proposed CWSRF financing: Name of Lender and Title of Debt or Loan Number Debt Security or Source of Revenue Debt Service Coverage Requirement Rating Original Debt Amount Current Balance Payment Amount Interest Rate Debt Term & Maturity Date $ $ $ / $ $ $ / $ $ $ / The following related debts are on parity to the proposed Financing Agreement: Name of Lender and Title of Debt or Loan Number Debt Security or Source of Revenue Debt Service Coverage Requirement Rating Original Debt Amount Current Balance Payment Amount Interest Rate Debt Term & Maturity Date $ $ $ / $ $ $ / $ $ $ / $ $ $ / $ $ $ / The following related debts are subordinate to the proposed Financing Agreement: Name of Lender and Title of Debt or Loan Number Debt Security or Source of Revenue Debt Service Coverage Requirement Rating Original Debt Amount Current Balance Payment Amount Interest Rate Debt Term & Maturity Date $ $ $ / $ $ $ / $ $ $ / $ $ $ / $ $ $ / Attach copies of the debt documents associated with the above debts. Resolution No. 4320 ‐ Page 1 of 3    RESOLUTION NO. 4320 A RESOLUTION OF THE BOARD OF DIRECTORS OF OTAY WATER DISTRICT TO OBTAIN REIMBURSEMENT TO FINANCE THE COST OF CONSTRUCTING AND RECONSTRUCTING CERTAIN PUBLIC FACILITIES AND IMPROVEMENTS WHEREAS, the Otay Water District (the "Agency") desires to finance the costs of constructing and/or reconstructing certain public facilities and improvements relating to its water and wastewater system, including certain treatment facilities, pipelines and other infrastructure (the "Project"); and WHEREAS, the Agency intends to finance the construction and/or reconstruction of the Project or portions of the Project with moneys ("Project Funds") provided by the State of California, acting by and through the State Water Resources Control Board (State Water Board); and WHEREAS, the State Water Board may fund the Project Funds with proceeds from the sale of obligations the interest upon which is excluded from gross income for federal income tax purposes (the "Obligations"), and WHEREAS, prior to either the issuance of the Obligations or the approval by the State Water Board of the Project Funds the Agency desires to incur certain capital expenditures (the "Expenditures") with respect to the Project from available moneys of the Agency; and WHEREAS, the Agency has determined that those moneys to be advanced on and after the date hereof to pay the Expenditures are available only for a temporary period and it is necessary to reimburse the Agency for the Expenditures from the proceeds of the Obligations. NOW, THEREFORE, BE IT RESOLVED, the Board of Directors of the Otay Water District resolves, determines and orders as follows: 1. The Agency hereby states its intention and reasonably expects to reimburse Expenditures paid prior to the issuance of the Obligations or the approval by the State Water Board of the Project Funds. Attachment C Resolution No. 4320 ‐ Page 2 of 3    2. The reasonably expected maximum principal amount of the Project Funds is $7,750,000. 3. This resolution is being adopted no later than 60 days after the date on which the Agency will expend moneys for the construction portion of the Project costs to be reimbursed with Project Funds. 4. Each Agency expenditure will be of a type properly chargeable to a capital account under general federal income tax principles. 5. To the best of our knowledge, this Agency is not aware of the previous adoption of official intents by the Agency that have been made as a matter of course for the purpose of reimbursing expenditures and for which tax-exempt obligations have not been issued. 6. This resolution is adopted as official intent of the Agency in order to comply with Treasury Regulation §1.150-2 and any other regulations of the Internal Revenue Service relating to the qualification for reimbursement of Project costs. 7. All the recitals in this Resolution are true and correct and this Agency so finds, determines and represents. NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the Board of Directors of the Otay Water District that the District finance the cost of constructing and reconstructing certain public facilities and improvements upon adoption of this resolution. PASSED, APPROVED AND ADOPTED by the Board of Directors of Otay Water District at a board meeting held this 4th day of January 2017, by the following vote: Ayes: Noes: Abstain: Absent: _____________________________ President ATTEST: ___________________________ Secretary Resolution No. 4320 ‐ Page 3 of 3    STATE OF CALIFORNIA       )  ) ss  COUNTY OF SAN DIEGO     )  I, ________________, Secretary of the Board of Directors of the Otay Water District, do hereby certify that the foregoing Resolution No. ________ was duly adopted by the Board of Directors of said District at a regular meeting thereof held on the 23rd day of March, 2016, and that it was so adopted by the following vote:              AYES:            DIRECTORS:               NOES:            DIRECTORS:           ABSENT:            DIRECTORS:         ABSTAIN:            DIRECTORS:                                                                            Secretary of the Board of Directors   of the Otay Water District  (SEAL)  STATE OF CALIFORNIA       )  ) ss  COUNTY OF SAN DIEGO     )  I, _____________________, Secretary of the Board of Directors of the Otay Water District, do hereby certify that the above and foregoing is a full, true and correct copy of Resolution No. ________ of said Board, and that the same has not been amended or repealed. DATED: _________________, 2016.                                                                           Secretary of the Board of Directors   of the Otay Water District  (SEAL)    Resolution No. 4321 ‐ Page 1 of 3    RESOLUTION NO. 4321 A RESOLUTION OF THE BOARD OF DIRECTORS OF OTAY WATER DISTRICT TO FILE AN APPLICATION FOR A FINANCING AGREEMENT FROM THE STATE WATER RESOURCES CONTROL BOARD (SWRCB) FOR THE CAMPO ROAD SEWER REPLACEMENT PROJECT   WHEREAS, the Otay Water District (the "Agency") desires to file an application for a financing agreement from the State Water Resources Control Board (SWRCB) for the Campo Road Sewer Replacement Project (the "Project"). NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the Board of Directors of the Otay Water District that: 1) The General Manager (the “Authorized Representative”) or designee is hereby authorized and directed to sign and file, for and on behalf of the Entity, a Financial Assistance Application for a financing agreement from the State Water Resources Control Board for the planning, design, and construction of the Campo Road Sewer Replacement Project. 2) This Authorized Representative, or his/her designee, is designated to provide the assurances, certifications, and commitments required for the financial assistance application, including executing a financial assistance agreement from the State Water Resources Control Board and any amendments or changes thereto. 3) The Authorized Representative, or his/her designee, is designated to represent the Entity in carrying out the Entity’s responsibilities under the financing agreement, including certifying disbursement requests on behalf of the Entity and compliance with applicable state and federal laws. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a board meeting held this 4th day of January 2017, by the following vote: Ayes: Noes: Abstain: Absent: Attachment D Resolution No. 4321 ‐ Page 2 of 3    _____________________________ President ATTEST: _____________________________ Secretary Resolution No. 4321 ‐ Page 3 of 3    STATE OF CALIFORNIA       )  ) ss  COUNTY OF SAN DIEGO     )  I, ________________, Secretary of the Board of Directors of the Otay Water District, do hereby certify that the foregoing Resolution No. ________ was duly adopted by the Board of Directors of said District at a regular meeting thereof held on the 23rd day of March, 2016, and that it was so adopted by the following vote:              AYES:            DIRECTORS:               NOES:            DIRECTORS:           ABSENT:            DIRECTORS:         ABSTAIN:            DIRECTORS:                                                                            Secretary of the Board of Directors   of the Otay Water District  (SEAL)  STATE OF CALIFORNIA       )  ) ss  COUNTY OF SAN DIEGO     )  I, _____________________, Secretary of the Board of Directors of the Otay Water District, do hereby certify that the above and foregoing is a full, true and correct copy of Resolution No. ________ of said Board, and that the same has not been amended or repealed. DATED: _________________, 2016.                                                                           Secretary of the Board of Directors   of the Otay Water District  (SEAL)    Resolution No. 4322 ‐ Page 1 of 2    RESOLUTION NO. 4322 A RESOLUTION OF THE BOARD OF DIRECTORS OF OTAY WATER DISTRICT TO PLEDGE SEWER OPERATING REVENUES AND/OR REPLACEMENT RESERVES FOR THE CAMPO ROAD SEWER REPLACEMENT PROJECT   WHEREAS, the Otay Water District (the “Entity”) commits to collecting such revenues and maintaining such fund(s) throughout the term of such financing and until the Entity has satisfied its repayment obligation thereunder unless modification or change is approved in writing by the State Water Resources Control Board. So long as the financing agreement(s) are outstanding, the Entity’s pledge hereunder shall constitute a lien in favor of the State Water Resources Control Board on the foregoing fund(s) and revenue(s) without any further action necessary. So long as the financing agreement(s) are outstanding, the Entity commits to maintaining the fund(s) and revenue(s) at levels sufficient to meet its obligations under the financing agreement(s). NOW, THEREFORE, BE IT RESOLVED, the Otay Water District hereby dedicates and pledges Sewer Operating Revenues and/or Replacement Reserves for the Campo Road Sewer Replacement Project. PASSED, APPROVED AND ADOPTED by the Board of Directors of Otay Water District at a board meeting held this 4th day of January 2017, by the following vote: Ayes: Noes: Abstain: Absent: _____________________________ President ATTEST: _____________________________ Secretary Attachment E Resolution No. 4322 ‐ Page 2 of 2    STATE OF CALIFORNIA       )  ) ss  COUNTY OF SAN DIEGO     )  I, ________________, Secretary of the Board of Directors of the Otay Water District, do hereby certify that the foregoing Resolution No. ________ was duly adopted by the Board of Directors of said District at a regular meeting thereof held on the 23rd day of March, 2016, and that it was so adopted by the following vote:              AYES:            DIRECTORS:               NOES:            DIRECTORS:           ABSENT:            DIRECTORS:         ABSTAIN:            DIRECTORS:                                                                            Secretary of the Board of Directors   of the Otay Water District  (SEAL)  STATE OF CALIFORNIA       )  ) ss  COUNTY OF SAN DIEGO     )  I, _____________________, Secretary of the Board of Directors of the Otay Water District, do hereby certify that the above and foregoing is a full, true and correct copy of Resolution No. ________ of said Board, and that the same has not been amended or repealed. DATED: _________________, 2016.                                                                           Secretary of the Board of Directors   of the Otay Water District  (SEAL)    STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: January 4, 2017 SUBMITTED BY: Andrea Carey, Customer Service Manager PROJECT: DIV. NO. All APPROVED BY: Joseph R. Beachem, Chief Financial Officer German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Authorize the Creation of an Automated Meter Reading (AMR) Change Out Capital Improvement Program (CIP) Project in the Amount of $1,150,000 for the Current Fiscal Year GENERAL MANAGER’S RECOMMENDATION: That the Board authorize the creation of an Automated Meter Reading (AMR) change out Capital Improvement Program (CIP) project in the amount of $1,150,000 for the current fiscal year. COMMITTEE ACTION: See Attachment A. PURPOSE: To establish a CIP and budget to replace AMR registers and transponders that were purchased and installed in 2006. ANALYSIS: Background In December 2005, the District contracted with Master Meter, Inc. to provide meters equipped with AMR technology. This technology allows meter reads to be collected while driving by the customer’s location. From 2005 through 2012, the District changed all ¾-2” meters to the Master Meter 3G metering system. The drive by system has been cost effective for the District. There are 49,520 meters in service and that would require nine full-time meter readers to read all of the meters on a monthly basis. By moving to AMR, the District currently has three full-time meter readers. In addition, it has increased safety to staff and reduced the District’s liabilities. In many parts of the District, there are areas without sidewalks and meters are located in steep and treacherous terrain. AMR has allowed meters in these areas to be read safely from a District vehicle. From a Customer Service perspective, the AMR technology allows historical, hourly, meter read data to be pulled from the meter to assist customers with unexplained usage increases. In addition, the system provides alerts for continuous usage (leaks), tampering and backflow detection. Warranty There is a 20-year warranty on the meters. The transponder and register have a 10-year full replacement with an additional 10-year prorated warranty. Meter Performance Meter performance can be broken down into the performance of the register/transponder and the performance of the meter itself. Since the first Master Meter was installed, the District has experienced less than a .15% annual meter failure rate. This year, staff has done periodic testing of our oldest meters and all continue to perform above AWWA standards. Automated Reading Performance In order to read the meter remotely, a transponder is embedded inside the meter register which communicates to data collectors located within the meter readers’ vehicles. When the battery on a transponder drains, the transmission is compromised and reads are no longer picked up remotely. Failure of the transponder does not impact the register itself and meters that are not transmitting a read electronically can still be read manually. The battery life was fully warranted up to 10 years and then prorated up to 20 years, however, the vendor recently suggested the possible life cycle was 12 or 13 years. In the past three years, the total failure rate had maintained a steady but manageable increase of approximately .4% per year. In the past few months the overall failure rate has increased and is now nearing an unmanageable level. Beginning in August of this year, staff began to see a large increase in the number of transponder failures from meters that were installed in 2006. These transponders have just moved from the 10-year full replacement warranty to the prorated 11th year. At 11 years, the warranty requires the customer (Otay) pay 30% of the list price of the product which currently calculates to $91.50 per register. Master Meter, Inc. Performance Master Meter, Inc. has proven to be a cooperative and valuable partner in the District’s transition to AMR. The company has worked closely with staff to assist with any product issues and has been extremely responsive to service requests. Staff has been pleased with Master Meter’s commitment to the integrity of their products. Change out Recommendation Given the large increase in failing transponders, staff recommends a replacement of all 2006 registers by June 2017. These meters were installed in groups within the same timeframe, so it is expected that the overall failure rate will continue to escalate at a rapid pace as additional batteries wear down. Staff recommends replacement of the register only, for 8,000 of the 8,500 meters installed in 2006. Replacing only the register will save the District approximately $700,000. Given the 20-year warranty on the mechanics of the meter, independent testing done by a meter testing facility, and staff’s own testing of the meters, staff believes the meters will continue to function within AWWA standards through the 20-year time frame. Staff is recommending a full meter change out of the remaining 500 meters from 2006 which include high water users and all 1.5” or 2” meters. As was done with the previous change out program, staff plans to contract with an outside vendor to do the register change outs. The labor cost of the change out program is not included in the requested budget amount. The bid process is currently underway and staff will be bringing the contract for installation services to the Board in February along with a corresponding request to increase the budget. Otay employees will be used for any difficult or sensitive meter change outs. IT, Customer Service and Purchasing staff will work with the Contractor to ensure the change out process runs smoothly with as little impact to the customers as possible. Budget Request Below is a breakdown of the total budgeted amount. Description Quantity Cost Transponders 8,000 $960,000 Meters and Transponders 500 $190,000 Total Budget for 2017 $1,150,000 This request is to establish the CIP for the meter change out program and authorize a budget of $1.15 million in this fiscal year, which is a change to the 2017 CIP budget. At the time the 2017 CIP budget was prepared it was not anticipated that the battery life of the transponders would fail in such large numbers. While staff had anticipated and were actively planning for a District-wide meter change out program, there was no evidence that the need was imminent. The District was one of the very first customers to use these AMR meters and as a result the battery lives of the transponders was not well understood. While it is not unreasonable for the battery failures to occur after 11 years, a recent and rapid increase in battery failures requires that the District advance and begin the meter replacement program. The change out program is not just a single year program. This program will likely span over a 7 year period and then become a perpetual replacement program. In the upcoming budgetary process, staff will include this in the 2018 CIP and will outline the expected budget for the next six years. Meter Technology In the past 10 years, meter reading technology has shifted to a focus on Advanced Metering Infrastructure (AMI). AMI is a fixed based electronic reading technology. It creates an infrastructure of data collectors at certain strategic points throughout the utility’s service area to allow individual meters to relay meter data straight to the office. This eliminates the need for an employee to drive by the meter to get reads. Staff has been monitoring this technology and has been receiving updates from various companies that offer AMI systems. There can be a large cost involved with an AMI system because of the requirements of multiple data collectors to receive signals from the various meters. Staff is not ready to recommend the move to AMI technology at this time. Given the District covers a large area and has varied topography, the infra-structure required to move to an AMI system would be significant. Staff will be evaluating this option in greater detail and preparing a comprehensive recommendation later this year. Master Meter’s newest AMR product, Allegro, has the ability to transition to AMI should the District decide to pursue this in the future. Allegro has improved transmission time and distance over the District’s current 3G product. Operating at 450 MHz band, this licensed frequency creates a secure channel for the District’s meter to communicate. The current meters operate on an open 900 MHz frequency. The lower 450 MHz frequency allows for a larger transmission area and increased propagation in and around structures. This allows for more meters to be read within a larger area and at a faster speed. In addition, Master Meter has made strides to extend the battery life of this newest product. The current 3G register transmits a signal every 11 seconds. The Allegro register, while in AMR mode, will only transmit when the meter reading is within range with the reading software turned on. Like the 3G product, all meter read data is stored with the Allegro register so historical data and all alarms can still be collected. Consistent with their strong commitment to Otay as a customer, Master Meter has agreed to allow the District to purchase their newest register, with all of its benefits, at the price of the older 3G product. Future Replacements Staff will continue to look at other meter technologies and will come back to the Board later this year, with a recommendation on the comprehensive 7 year change out program as well as an update on the status of this batch of change outs. FISCAL IMPACT: Joe Beachem, Chief Financial Officer This action establishes the Capital Improvement Project AMR Change Out program budget of $1,150,000 for fiscal year 2017. While this expenditure was not incorporated into the planned rates, the District has sufficient financial flexibility to fund this program earlier than anticipated. The replacement reserve is projected to be $11.3 million over target at the end of fiscal year 2017, and due to the strong water sales this year the general fund is currently anticipated to be $2 million more than budgeted. STRATEGIC GOAL: Improve and streamline meter related processes. LEGAL IMPACT: None. Attachments: A) Committee Action Form B) Presentation ATTACHMENT A SUBJECT/PROJECT: Authorize the Creation of an Automated Meter Reading (AMR) Change Out Capital Improvement Program (CIP) Project in the Amount of $1,150,000 for the Current Fiscal Year COMMITTEE ACTION: The Finance, Administration, and Communications Committee reviewed this item at a meeting held on December 13, 2016 and the following comments were made:  Staff is requesting that the Board authorize the creation of an Automated Meter Reading (AMR) change out Capital Improvement Program (CIP) in the amount of $1,150,000.  Staff reviewed the information in the staff report and the AMR technology.  Staff noted some of the benefits of AMR technology: - It has allowed for the reduction of fulltime meter reader staff members from nine (9) to three (3). - Increased the safety of staff members and reduces the District’s liability as staff no longer needs to walk on busy roads or treacherous terrain to read meters. Meters can be read safely from a District vehicle. - From a customer service perspective, AMR technology allows for the storage of historical hourly and yearly water use data which can assist customers with unexplained usage. - AMR technology also provides leak, tamper and backflow detection alarms.  The Committee requested that staff bring a sample of the AMR meter to the board meeting. Staff shared that Master Meters is an Israeli Company and the meters are made in Israel. Master Meter does have a facility in Texas but, as of this time, the meters are still manufactured in Israel.  It was discussed that the District is working with Master Meter on a propagation study of the AMI technology to determine what infrastructure would be needed to collect the meter reads. Such as, the number of repeaters and signals required for the different elevations throughout the District’s service area and if it would be cost effective to move to the new AMI technology.  Staff noted, even with the new AMI technology, that the District would not be able to reduce the head count for the meter reading staff from where it is today because of the administrative needs of the program. Staff members would still be required to manage the routes, manage any issues associated with the program, manually read meters that fail, etc.  It was discussed that the District had approached SDG&E at the time they were implementing their AMR program of possibly sharing services for meter reading. It was indicated that the technology/software for electric meter reading is a little different and there are patents on the technology that would need to be considered. At this time, SDG&E has no interest in sharing services.  In response to an inquiry from the committee, staff presented the cost savings that were projected from 2004 to 2017 when the District implemented AMR, the actual savings from 2004 to 2017, and the projected savings from 2017 to 2027 (see below). Staff indicated that the biggest savings has been realized from reducing the number of meter reading staff members. The savings does not only include salary and benefits, but vehicle cost, etc.  Original Cost Benefit 2004-2017 Cost of Manual Meter $11,829,406 Cost of AMR Program $10,583,482 Net Savings $ 1,245,924  Actual Cost Benefit 2004-2017 (CIP P2458) Cost of Manual Meter $10,738,478 Cost of AMR Program $ 8,659,596 Net Savings $ 2,078,882  Projected AMR Change out vs Manual Meter 2017-2027 (New CIP) Cost of Manual Meter $12,196,200 Cost of AMR Program $10,034,800 Net Savings $ 2,161,400  Staff indicated that in the original cost analysis, it was assumed that the District would have 2000 to 2500 new meter installations (customers) every year. This did not occur due to the recession which began in 2007. The District also anticipated a slower and more gradual “change-out” program because the District would have needed to handle the high growth. Because this growth did not occur, the District had a higher paced “change-out” program which allowed the District to realize savings from the program more quickly.  Staff indicated in response to an inquiry from the committee that, should the District move to the new AMI technology, it would allow for the District’s customers to track their water use on an App on their phone. It was indicated that the District already has the ability to provide support to customers who believe that their water use is excessive through the available meter data. However, staff is analyzing the cost benefit in providing that service. Staff noted that they have reached out to Padre Dam MWD who offers this technology to their customers to see how many are taking advantage of the service. The District has not yet heard back from Padre Dam MWD. It was also discussed that in the most recent Customer Survey, customers showed low interest in this type of technology. Upon completion of the discussion, the committee supported staffs’ recommendation and presentation to the full board as an action item. Automated Meter Reading Change Out CIP Otay Water District Board of Directors Meeting January 4, 2017 Attachment B Background •In December 2005, the District contracted with Master Meter, Inc. to  provide meters equipped with Automated Meter Reading (AMR)  technology. •From 2005‐2012, the District changed out all 3/4‐2” meters to the  Master Meter 3G metering system. 2 Benefits •Reduction in meter reading staff •Increased safety in meter reading •Technology stores historical hourly water usage •Provides leak, tamper and backflow alarms 3 AMR Technology A transponder is embedded in the meter’s  register and communicates to data collectors  located within the meter readers’ vehicles.   When the battery drains, the transmission is  compromised and reads can no longer be  picked up remotely.  Therefore, the meter  reader will have to manually read these  meters.  4 Performance •Overall meter performance is less than .15% failure per year •From 2012‐2015, the total failure rate of transponders was increasing  at a rate of .4% per year 5 2016 Transponder Performance •Increase in failures from 2006 transponders •Register warranty is 10‐year full replacement/10‐year prorated •2006 transponders are now in year 11 •Otay pays 30% of list price which is $91.50 per register 6 Change out Recommendation •Replacement of all 2006 registers by June 2017 •Replacement of registers only for 8,000 of 8,500 meters •Full meter change out of 500  •High Users •1.5” & 2” Meters •Contract with an outside vendor to complete change outs 7 Latest Technology Developments •Advanced Metering Infrastructure (AMI) •Data collectors are positioned throughout service area •Meter reads sent straight to the office •Large cost associated with the infrastructure 8 Master Meter Allegro •Hybrid product that allows both AMR & AMI •All wires are encased in register •Operates at a licensed 450 MHz frequency •Larger transmission area •Better transmission in and around structures •Only transmits data when meter reader is in range 9 Staff Recommendation •Replace all 2006 3G products with Master Meter’s Allegro product •Continue to research other technologies •Return to the Board with a comprehensive seven‐year change‐out  program 10 Board Action •Staff requests the Board authorize the creation of an Automated  Meter Reading change‐out Capital Improvement Program project in  the amount of $1,150,000 from the Replacement Reserve. •The breakdown of the total request is as follows: 11 Description Quantity Cost Transponders 8,000 $960,000 Meters and Transponders 500 $190,000 Total Budget for 2017 $1,150,000 Questions? 1 RESOLUTION NO. 4325 A RESOLUTION OF THE BOARD OF DIRECTORS OF OTAY WATER DISTRICT CONSENTING TO AND APPROVING THE APPOINTMENT OF Mark Robak AS A REPRESENTATIVE TO THE BOARD OF DIRECTORS OF THE SAN DIEGO COUNTY WATER AUTHORITY (FIRST SEAT) WHEREAS, Section 6(b) of the County Water Authority Act (Chapter 545 of the Statutes of 1943, Chapter 45 Water Code) pro- vides that the CWA Board (defined below) shall consist of at least one representative from each public agency located within CWA’s area; and WHEREAS, the Board of Directors of the Otay Water District wishes to change its first representative seat on the San Diego County Water Authority Board of Directors currently held by Gary Croucher; and WHEREAS, the District proposes, and this Board desires to consent to and approve, the designation and appointment of Mark Robak as Otay Water District’s first representative on the Board of Directors of SAN DIEGO COUNTY WATER AUTHORITY filling the un- expired term ending March 3, 2020. NOW, THEREFORE, it is hereby resolved, ordered and deter- mined by the Board of Directors of the Otay Water District as follows: SECTION 1. This Board of Directors hereby consents to and ap- proves the designation and appointment of Mark Robak as the Dis- trict’s first representative on the Board of Directors of the San 2 Diego County Water Authority for the term that commenced on March 3, 2014. SECTION 2. The President of the District’s Board, the General Manager of the District, the District’s Secretary and their de- signees are hereby authorized to take any action required to be taken on behalf of the District to carry out the purpose of this Resolution. SECTION 3. This Resolution shall be effective as of the date it is adopted. PASSED, APPROVED AND ADOPTED by the Otay Water District Board of Directors at a regular meeting held this 4th day of Jan- uary, 2017. AYES: NOES: ABSENT: ABSTAIN: ___________________________ President ATTEST: ________________________ District Secretary 1 RESOLUTION NO. 4326 A RESOLUTION OF THE BOARD OF DIRECTORS OF OTAY WATER DISTRICT CONSENTING TO AND APPROVING THE APPOINTMENT OF Tim Smith AS A REPRESENTATIVE TO THE BOARD OF DIRECTORS OF THE SAN DIEGO COUNTY WATER AUTHORITY (SECOND SEAT) WHEREAS, Section 6(d) of the County Water Authority Act (Chapter 545 of the Statutes of 1943, Chapter 45 Water Code) pro- vides that, in addition to its one representative, each member agency may, at its option, designate and appoint one additional representative under certain conditions; and WHEREAS, the Board of Directors of the Otay Water District wishes to change its second representative seat on the San Diego County Water Authority Board of Directors currently held by Mark Watton; and WHEREAS, the District proposes, and this Board desires to consent to and approve, the designation and appointment of Tim Smith as Otay Water District’s second representative on the Board of Directors of SAN DIEGO COUNTY WATER AUTHORITY filling the un- expired term ending January 23, 2020; and NOW, THEREFORE, it is hereby resolved, ordered and deter- mined by the Board of Directors of the Otay Water District as follows: SECTION 1. This Board of Directors hereby consents to and ap- proves the designation and appointment of Tim Smith as the Dis- trict’s second representative on the Board of Directors of the 2 San Diego County Water Authority for the term that commenced on January 23, 2014. SECTION 2. The President of the District’s Board, the General Manager of the District, the District’s Secretary and their de- signees are hereby authorized to take any action required to be taken on behalf of the District to carry out the purpose of this Resolution. SECTION 3. This Resolution shall be effective as of the date it is adopted. PASSED, APPROVED AND ADOPTED by the Otay Water District Board of Directors at a regular meeting held this 4th day of Jan- uary, 2017. AYES: NOES: ABSENT: ABSTAIN: ___________________________ President ATTEST: ________________________ District Secretary STAFF REPORT TYPE MEETING: Regular Board Meeting MEETING DATE: January 4, 2017 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 2017 Calendar of Meetings GENERAL MANAGER’S RECOMMENDATION: At the request of the Board, the attached Board of Director’s meeting calendar for 2017 is being presented for discussion. PURPOSE: This staff report is being presented to provide the Board the opportunity to review the 2017 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 2017 G:\UserData\DistSec\WINWORD\STAFRPTS\Board Meeting Calendar 12-7-16.doc Board of Directors, Workshops and Committee Meetings 2017 Regular Board Meetings: Special Board or Committee Meetings (3rd Wednesday of Each Month or as Noted) January 4, 2017 February 1, 2017 March 1, 2017 April 5, 2017 May 3, 2017 June 7, 2017 July 5, 2017 August 2, 2017 September 6, 2017 October 4, 2017 November 1, 2017 December 6, 2017 January 18, 2017 February 15, 2017 March 15, 2017 April 19, 2017 May 17, 2017 June 21, 2017 July 19, 2017 August 16, 2017 September 20, 2017 October 18, 2017 November 15, 2017 December 20, 2017 SPECIAL BOARD MEETINGS: BOARD WORKSHOPS: STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: January 4, 2017 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: Purchasing & Facilities:  Certificate of Insurance Tracking and Verification Service - myCOI – The District and vendor internet portals will be active January 3. Purchasing and Engineering staff, in conjunction with myCOI, have completed the initial setup to include existing contracts along with their insurance requirements. Contractors and suppliers will be sent an introductory notification to register beginning in early January. MyCOI is a cloud-based portal solution to streamline the tracking and management of certificates of insurance, compliance, and risk reporting.  Facility Security and Access Control Update – Of the over 50 District facilities to be upgraded under the Board approved 2-year agreement with Watchlight Corporation, which ends June 30, 2017, four sites remain to be upgraded with an anticipated completion date in April 2017. The project is ahead of schedule and on budget. Human Resources:  Holiday Party – The District’s Holiday Party was held on December 10, 2016 at the Harbor House in Seaport Village. Employees and guests enjoyed the festive evening.  HR Policy Updates – HR conducted training for supervisors and managers on recent updates to HR policies and procedures related to legal updates, to include: Family Medical Leave Act, Kin Care 2 Leave, School/Child Care Provider Activities Leave, and Smoking, Tobacco & Nicotine Free Campus.  Recruitments/New Hires/Promotions – There were no recruitments, new hires, or promotions this month. Safety & Security:  Emergency Preparedness - Staff attended the “Cost Recovery for Public Agencies Seminar”. The speaker, Rebecca Weber, Analyst Proclamation and Recovery Planning Division (Recovery Section of the California Governor’s Office of Emergency Services in Los Alamitos, CA), covered what we (District) can do from the onset of an emergency and throughout the process of response and recovery to be eligible for public assistance disaster reimbursement following a federally-declared disaster in California. Other topics included Public Assistance Process; Roles of the Local Agency, Cal OES and FEMA; Components of Program Eligibility; Damage Assessments; Contract Procurement; Environmental Considerations; Hazard Mitigation Funding; Cost Recovery; and Recovery Myths.  Vulnerability Assessment – The Department of Homeland Security completed a facility vulnerability assessment of the District’s Administration building. No significant items were noted, but the final report is still pending. Anticipated delivery of report is February 2017.  Chemical Safety Data Sheets (SDS) - Implemented an online/electronic management program for chemical safety data sheets. The program is available online via SharePoint and through an application both for smartphone and android devices. This program streamlines the management of individual chemical SDS updates and location is centralized, completed electronically, and each District section has their own binder with all individual sections making up the District’s Master SDS electronic repository. INFORMATION TECHNOLOGY AND STRATEGIC PLANNING:  District Mass Notification System - Staff is planning the deployment of Rapid Notify, Inc., a cost-effective and easy-to-use cloud-based software that will provide real-time email, SMS texting, and telephone communication to District emergency response staff.  GIS App for Security Panels - Staff developed a security panel app. The app will allow Security and Facilities staff to access key security information through cloud-based ArcGIS online. 3 FINANCE:  New 2017 Rates - Staff has successfully completed testing of the new water and sewer rates within our test billing database. The 2017 rates will take effect with the first billing cycle in January.  Water Loss Audit – Staff submitted the results of the 2015 water loss audit to the American Water Works Association (AWWA) for review. AWWA representatives will be meeting with District staff in February to review the results of the audit and make recommendations for the 2016 water loss audit, which will need to be submitted to the State Water Resources Control Board (SWRCB) in November 2017.  Capacity Fee Study – Staff is reviewing preliminary results for updating the water and sewer capacity fees. Staff anticipates the capacity fee study will be completed in early January 2017. The financial reporting for November 30, 2016 is as follows:  For the five months ending November 30, 2016, there are total revenues of $43,635,243 and total expenses of $40,219,448. The revenues exceeded expenses by $3,415,795. The financial reporting for investments for November 30, 2016 is as follows:  The market value shown in the Portfolio Summary and in the Investment Portfolio Details as of November 30, 2016 total $84,108,230 with an average yield to maturity of 0.95%. The total earnings year-to-date are $336,563. ENGINEERING AND WATER SYSTEM OPERATIONS: Engineering:  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. Charles King continued construction of the new blow offs and provided support for the force main inspection. Pipeline Inspection and Condition Analysis Corporation (PICA) completed inspection of the lower 12,000 feet of force main in December 2016. Charles King is scheduled to complete the construction of the blow offs, cathodic protection improvements, and road repairs in January 2017. The 4 overall project is within budget and on schedule to complete in February 2017. (R2116)  36-Inch Main Pumpouts and Air/Vacuum Ventilation Installations: This project consists of inspection, repairs, and improvements to the District’s La Presa 36-Inch Pipeline between San Diego County Water Authority Flow Control Facility Number 11 and the District’s Regulatory site. The construction agreement between the District and Underground Pipeline Solutions, Inc. from Alpine, CA has been approved. The project consists in the relocating of six (6) existing air/vacuum valves from underground vaults to above ground locations. Construction is scheduled to begin in January 2017. The project is within budget and on schedule to complete in April 2017. (P2267)  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. The contractor, Blastco, Inc., began work to remove the interior coating and perform a structural inspect blast at the 978-1 Reservoir in December 2016. The project is within budget and on schedule to complete in June 2017. (P2534 & P2544)  Rancho San Diego Basin Sewer Rehabilitation – Phase 1: This project consists of sewer system improvements at fourteen (14) locations within the Rancho San Diego Basin. The work includes replacement of approximately 3,250 linear feet of 8-inch gravity sewer main and the installation of four (4) new manholes. The contractor, Transtar Pipeline, Inc., has installed sewer along Hillsdale Road, Juliana Street, Donahue Drive, Paseo Grande, Vista Grande Road, Tina Street, Burris Drive, and Fuerte Knolls with final punch list work pending. The project is substantially complete and within budget; pending is the processing of contract Change Order No. 5 which will also serve to close out the contract and includes the assessment of liquidated damages for late delivery of the project. (S2033)  Ralph W. Chapman Water Reclamation Facility (RWCWRF) Facility Master Plan: On February 29, 2016, the District issued a Task Order to Arcadis to prepare a Master Plan for the RWCWRF to develop a phased approach to implement improvements with prioritizing identified improvements considering the needs, overall costs, long- term payback on investment, and other factors. The District assembled a list of projects to begin the study, but Arcadis will draw upon their expertise to identify additional work that would improve the operation of the facility. Improved instrumentation to 5 enhance the operation and automation is also being studied. A draft of the final master plan was submitted to the District on October 21, 2016, with minor comments noted and returned on November 17, 2016 for Arcadis to finalize by the end of December 2016. The final plan will be used for prioritizing future CIP projects. (R2119)  Hillsdale Road Water and Sewer Replacement: The existing water line in Hillsdale Road between Jamacha Road and Vista Grande Road has experienced several breaks and found to be in need of replacement. As the County plans to repave the road as soon as the project is completed, the replacement of two (2) segments of sanitary sewer are also included in the scope of work. Through the District’s As- Needed Engineering Design Contract, a Task Order was issued on June 23, 2016 to Psomas to design the project. The Preliminary Design Report was completed in September 2016 and the 30% Design in October 2016. The 60% Design was submitted on November 17, 2016, with the District returning comments on December 1, 2016. The County has delayed issuing permits for geotechnical investigation and potholing until the holiday break for Valhalla High School to minimize traffic disruptions. Submission of traffic control plans to Caltrans is now the primary item on the project critical path. The project is within budget and on schedule. (P2573 & S2048)  Trenchless Sewer Rehabilitation: The District is completing the in-house design of sewer repairs for 60 locations using trenchless technologies, with advertisement for bids to occur on December 16, 2016 and opening of bids set for January 24, 2017. Construction is anticipated to begin in April 2017 with completion by July 2017. The project is within budget. (S2044)  Rosarito Desalination: Aguas de Rosarito (a partnership between NSC Agua, New Water and Suez) (AdR), has finalized a 40-year definitive public-private partnership agreement with the State of Baja California on August 25, 2016. District staff and representatives from AdR continue to coordinate on complying with the California Water Resources Control Board Drinking Water Program regulatory requirements related to source water quality testing. A meeting with DDW will be scheduled in January 2017. After Board certification of the EIR/EIS on September 7, 2016, a notice of the 30-day public comment period was published in the Federal Register on September 14, 2016. Federal agencies have 90-days to comment on whether they believe the project is in the National Interest. After this 90-day period and after the biological opinion for the mitigation of impacts has been approved by the US Fish and Wildlife Service, the State Dept. will issue a Record of Decision/National Interest Determination and there will be an additional 15-day comment period. If it is determined that the project will be in the National Interest, the Presidential Permit will be issued by 6 February 2017. On December 9, 2016, staff met with Andrew Navarro, Deputy Director SDC Logistics, and his supervisor, Daniel Boldt, from the Department of Homeland Security US Customs and Border Patrol, at the proposed location of the pipeline crossing at the border to provide them with information on the planned Otay facilities near the border. The Rosarito Desal project was in the news. Two articles in the desalination.biz November 17, 2016 publication (and in the water:desalination+reuse December 2016 publication) titled, “Consolidated Water Lines Up Mexican Mega- Project” and “Challenges are Shared Across the Border, Mitch Thompson, Otay” are attached as Attachment A and B for reference. (P2451)  For the month of November 2016, the District sold 9 meters (38.5 EDUs), generating $369,362 in revenue. The projection for this period was 9.7 meters (28.5 EDUs), with budgeted revenue of $270,175. Total revenue for Fiscal Year 2017 is $1,075,459 against the annual budget of $3,242,100. Water System Operations (reporting for October):  On November 4, staff responded to a lateral direct tap main break at 1550 Tarleton Street in Spring Valley. Twenty-three residential meters were isolated for approximately nine hours to repair the break. Water trailers were on-site for affected customers.  As reported at the December 7 Board meeting, on November 8, Water Systems staff responded to a main break on a 12-inch CCP pipe on Hillsdale Rd. in El Cajon. Initially, there were 55 customers affected on Jalisco Rd., Hillsdale Ln. and Hillsdale Rd. Staff high-lined Jalisco Rd. and Hillsdale Ln. reducing the number of customers affected to 14 meters, three water trailers were on-site. Utility Maintenance worked overnight and completed the repairs on November 9. All meters had their services restored by 3:00 p.m.  On November 17, a planned shutdown was performed at Cactus Ct. in Otay Mesa to replace a defective 8-inch gate valve for a fire service. Six commercial and ten irrigation meters were affected. Two water trailers were on site for customers affected by the shutdown.  On December 5, staff received a letter from the SWRCB stating that they will be encouraging grade level K-12 schools to request lead sampling. The SWRCB will be amending all domestic water supply permits so they will require the water purveyor of K-12 schools to plan, conduct and report lead testing if requested by the school. Costs for this testing will be the responsibility of the District with a potential range from $10,000 to $70,000. 7  On December 12, the District experienced a main break on a 6-inch ACP pipe on Eucalyptus Street between La Mesa Avenue and Coronado Avenue in Spring Valley. There were 25 residential customers affected during the emergency shutdown. Water trailers were provided and available for impacted customers. Customers were back in service the same day after repairs were completed.  On December 13, staff, in conjunction with an APCD inspector, completed an emissions source test for Pump Engine No. 5 at the 927-1R Reycled Pump Station. The engine passed with no follow-up actions required.  From December 12 through December 21 the County of San Diego conducted annual Hazardous Management Business Plan (HMBP) inspections at the following sites: 450/680 Recycle Pump Station, 978-1 Pump Station, 1200-1 Pump Station, and Hidden Mountain Sewer Lift Station. No violations were noted and no follow-up actions were required. Purchases and Change Orders:  The following table summarizes purchases and Change Orders issued during the period of October 22, 2016 through December 19, 2016 that were within staff signatory authority: Date Action Amount Contractor/ Consultant Project 12/13/16 P.O. $3,200.00 Dive/Corr, Inc. 1200-1 Reservoir and 850-1 Reservoir (2533 & 2543) 12/12/16 P.O. $2,500.00 Advanced Industrial Services, Inc. 803-3 Reservoir Repair (P2519) 11/30/16 P.O. $2,857.30 Mayer Reprographics, Inc. 14-Inch Force Main Rehabilitation Project (R2116) 11/17/16 P.O. $1,784.25 Kirk Paving, Inc. 1810 1/2 Hillsdale Road (S2033) 8 Date Action Amount Contractor/ Consultant Project 11/17/16 P.O. $10,500.00 The Watchlight Corp. 978-1 Reservoir (P2534) 11/17/16 P.O. $10,500.00 The Watchlight Corp. 850-2 Reservoir (P2544) 11/02/16 C.O. #3 $7,444.71 Transtar Pipeline, Inc. RSD Sewer Rehabilitation Phase I (S2033) 12/1/16 Contract Supplemental $7,000 SVPR Communications Consultant Services Water Conservation and Sales:  Water Conservation – November 2016 usage was 4% lower than November 2013 usage. Since the State’s Conservation Mandate began in June 2015, customers have saved an average of 18%.  The November potable water purchases were 2,274.3 acre-feet which is 11.1% above the budget of 2,047.6 acre-feet. The cumulative 9 purchases through November were 13,321.8 acre-feet which is 10.3% above the cumulative budget of 12,082.5 acre-feet.  The November recycled water purchases and production were 350 acre- feet which is 18.7% above the budget of 294.8 acre-feet. The cumulative production and purchases through November were 2,198.5 acre-feet which is 10.5% above the cumulative budget of 1,989.6 acre-feet. 10 Potable, Recycled, and Sewer (Reporting up to the month of October):  Total number of potable water meters is 49,584.  Recycled water consumption for the month of November is as follows: Total consumption was 358.1 acre-feet or 116,635,640 gallons and the average daily consumption was 3,887,855 gallons per day. Total cumulative recycled water consumption since July 1, 2016 is 2335.8 acre-feet. Total number of recycled water meters is 713.  Wastewater flows for the month of November were as follows: o Total basin flow, gallons per day: 1,520,417. This is an increase of 0.18% from November 2015. o Spring Valley Sanitation District Flow to Metro, gallons per day: 502,697. o Total Otay flow, gallons per day: 1,017,733. o Flow Processed at the Ralph W. Chapman Water Recycling Facility, gallons per day: 0. o Flow to Metro from Otay Water District was 1,017,733 gallons per day. o By the end of October there were 6,102 wastewater EDUs. Attachments: Attachment A: Article, “Consolidated Water Lines Up Mexican Mega- Project” Attachment B: Article, “Challenges are Shared Across the Border, Mitch Thompson, Otay” ATTACHMENT A Consolidated Water lines up Mexican mega-project 17 November 2016, source desalination.biz The Playas de Rosarito seawater RO desalination mega-plant project has been six years in the making. It began as a twinkle in Consolidated Water's eye even before Mexico had introduced its new public-private partnerships law, but the act's introduction in 2012 gave the project a clear structure for moving ahead. The new desalination plant at Playas de Rosarito will be on the coast adjacent to the existing power station At that point, Consolidated had already done much initial project scoping, however the terms of the new law mandated that it tender in a competitive process with only a very slight advantage. The firm's speculative activity in laying the groundwork for the project paid off, and it won the commercial contract in August 2016. The Playas de Rosarito project, whose estimated total cost is MXN9 billion ($490 million), is a huge initiative for the State of Baja California, one of the largest infrastructure projects ever to have been undertaken in the region. Hopes are high that it will support economic growth, particularly in terms of tourism trade. The next big milestone for the mega-project will be financial close in early to mid-2017. Construction will then commence in two phases: the first delivering water into the city of Tijuana's potable water system; and the second to a delivery point in central Tijuana. Finally, there is the potential for the Rosarito plant to supply water across the border into California. Read what Otay Water District board president Mitch Thompson says about this project. ATTACHMENT A Shape of the project: Mega-project has several unique characteristics The drivers · Initially to supply the city of Tijuana · Next phase may involve a cross-border water deal with US, giving the project a bi-national flavour · Structured according to Mexico's Asociaciones Publico-Privadas (APP), law on public-private partnerships Proactive project · Project grew out of ideas and studies initiated by Consolidated Water · The company secured land and other rights of way from the Rosarito Power Plant · APP introduced a clearer framework for projects that helps to attract private investors The Rosarito Seawater Desalination Plant project is a multi-faceted piece of work that relies on input from, and partnerships with multiple agencies, individuals, administrators, and regulators. Once built, the plant will be twice as big as any other desalination plant in the Americas, or the entire Western hemisphere. "The magnitude of it in terms of a global desal project, and the size and importance of it to Baja Norte -- it's the region's biggest infrastructure project ever, and one of the biggest public-private partnerships anywhere in Mexico -- is very exciting. It's a really big deal for the region's water supply, and not just in Tijuana, but also in San Diego, California," says John Tonner, vice president and chief operating officer of Consolidated Water. As a Mexican project, it will be financed in pesos, and there is potential to work out a cross-border deal on water supply with the State of California, US, giving the project a bi-national flavour. When Mexico's new public-private partnerships law, Asociaciones Publico-Privadas (APP), came into play, it provided a clear legal framework for the project. Under the terms of the law, private developers can propose to the state ideas for studies on issues like the feasibility, environmental effects, and social impact of a project. Public-private partnership: The APP agreement sets the foundation for the future The contract · APP contract covers design, construction, financing, and operation · Covers seawater desalination plant and accompanying aqueducts · Water rates are indexed to the Mexican national consumer index Two phases · Phase one: capacity of 50 million gallons a day and an aqueduct to the Tijuana potable water system ATTACHMENT A · Phase two: capacity of 50 million gallons a day and an aqueduct to a second delivery point in Tijuana · Consolidated Water signed a public-private partnership APP deal with the State of Baja California on 22 August, 2016. The tender had been a competitive international tender and, as Tonner says, Consolidated Water "had to fight tooth and nail with other experienced, international desalination companies"--a process that ultimately "kept the costs down". The contract was signed through Aguas de Rosarito (AdR), a special purpose vehicle owned by NuWater and NSC Agua, a subsidiary of Consolidated Water, for the design construction, financing, and operation of a seawater desalination plant in Playas de Rosarito. The project is split into two halves, the first covering a 50 million gallons a day desalination plant and a 14km aqueduct to deliver water into Tijuana's potable water system, and the second for another 50 million gallons a day plant, and an aqueduct to convey water to a central delivery point a further 15km into Tijuana. Phase one must be operational within 36 months of commencing construction, and the second by the end of 2024, although the state could bring that date forward. The operations and maintenance part of the contract runs for 37 years from the date of commissioning of phase one. At the end of the period, ownership of the plant and aqueducts will transfer to Baja California State Water Commission (CEA). Bi-national flavour: Water supplies in Baja Norte and San Diego County are closely linked The possibilities · Desal project could eventually supply water to the US · Innovative water trading ideas are developing, including new definitions of "wet water" and "paper water" · "Paper water" equates to trading between water agencies on water supplies · Potential for leverage through smart approach to water deals The challenges · Many permitting hurdles must be cleared, including at a Federal level, for cross-border initiatives Back in the 1930s, a treaty on water from the Colorado River and Rio Grande was signed between the Mexican and US authorities. The organisation involved was the International Boundary and Water Commission, a unique agency that continues to exist today, as a function of both the Mexican and US authorities. As part of the broader work that's going on around the Rosarito Beach project, Otay Water District, California, has been working to get approval to take water from the plant, steering a process through authorities on the US side of the border. "There has been a lot of water sampling and testing going on for almost a couple of years now in compliance with California and Federal regulations, and Otay Water District has applied for permission to have a pipeline cross the border. Anything that goes across the border, whether a gas pipeline, a power ATTACHMENT A line, or whatever, requires presidential approval on the US side -- a presidential permit; and Otay is quite advanced in planning for that," says Tonner. "The application for the presidential permit is in, and the source water quality monitoring necessary to support an application for consideration of a new water source is proceeding with the State of California." One question is whether CEA, the State Water Commission of Baja California, will be the vendor of water to Otay, or if the supplies will be bought direct from Consolidated Water. "That's the million dollar question. On one hand, we'll just keep making the plant as big as CEA wants it to be, and they can sell it to whoever they want, assuming that they can get approval from whichever entities they need to on both sides of the border. Or they may want us to go directly to Otay," explains Tonner. "Whether it ends up that they negotiate with the State of Baja California Norte, or if something's worked out with some other government agencies at the Federal level on both sides, I don't know. Whether they end up dealing with us, we don't yet know." Water from the plant could be delivered across the border in one of two ways: in Mexico the two possibilities are known as "wet water" or "paper water". Wet water means physically delivering water, by means of a pipeline for example. Paper water means that a US agency somewhere further up the Colorado River would take a certain amount of water from the river, and that Tijuana would no longer draw that volume from the river on its side of the border, but instead take it from the desalination plant. "For every cubic metre a second that we deliver to Tijuana, they don't need to take it from the Colorado. To get a cubic metre a second to Tijuana they take more than that from the Colorado, because of the canal, evaporation, and leakage. So paper water represents a potential for leverage. We give them one, they may be able to haggle for two on the Colorado. That's never been done before, and can be a part of our project," says Tonner. San Diego and Tijuana are seen by some agencies, including development funding bodies, as a single economic area. "The potential to deliver water into both Southern California and Baja is really exciting, it builds on the community there, helps to foster and grow that, and there are a lot of people on both sides who believe in that," says Tonner. Technology and design: There will be a focus on low energy consumption Energy efficiency · Plant will use the latest proven micro-filtration, ultra-filtration, and reverse osmosis technologies · Double the capacity of any other desalination facility in the Americas · Consolidated Water will exploit significant experience with energy recovery devices that it has gained through projects in the energy-expensive Caribbean market Proven technology · The intention is to use proven and robust technologies in reliable ways · Experimental or unproven technologies are considered inappropriate in this context It's still early days for the exact technical details of the system to have been nailed down. Broadly speaking, the approach will be "to deploy the latest proven micro-filtration, ultra-filtration and reverse osmosis technologies in the marketplace," says Tonner. "It's going to be double the capacity of anything in the Americas. It will be world class in terms of its environmental footprint, including energy consumption." He points out that the big innovations of the project are expressed more in terms of its mega-size, and the structure of the deals that it is built upon, rather than in using the latest, most experimental technology out ATTACHMENT A there. Additionally, use of unproven or early stage technology is usually more appropriate in situations where the developer is investing only its own money. "The type of deals we are doing as part of the Rosarito project, they get done with limited recourse project finance which mandates that you are using proven, robust technologies in reliable ways," says Tonner. Consolidated Water's core market is in the Caribbean -- including the Cayman Islands, the Bahamas, and the British Virgin Islands - a market whose energy prices are five to eight times higher than in the US or Europe. "We know that reverse osmosis is considered by some people to be an energy-intensive process, and in the Caribbean we operate in an energy-expensive market. At our Caribbean plants we have been among the first to deploy advanced energy recovery devices, we have a lot of experience with that. We do that with assets that are on our own balance sheet," explains Tonner. Consolidated Water's portfolio of plants includes RO plants in the Cayman Islands, the Bahamas, Belize, the British Virgin Islands, and Bali. It began as an exclusive water utility franchise in Grand Cayman in the 1970s, developing technical expertise and regional knowledge that it could then leverage to expand. The company's first SWRO plant was installed in 1989. Construction and ops: EPC contract goes to experienced mega- operator The partners · Degremont (Suez subsidiary) was selected as the design and construction partner · Track record and reliability of partners is considered important as part of the project package that will be presented to potential lenders The operations · Suez, NuWater, and Consolidated Water will operate and maintain the plant and aqueduct over a period of 37 years · Ownership of the infrastructure transfers to Baja California State Water Commission (CEA) in the mid to late 2050s Degremont, a subsidiary of the French water treatment solutions and services provider Suez Environment, has been awarded an engineering, procurement and construction (EPC) contract to build the plant at Rosarito. "Suez has a track record of building projects like this, and lenders like to see that the EPC contractor is doing the engineering and taking responsibility for that," says Tonner. Back in 2009, Degremont, in consortium with Thiess, signed up to finance, design, build, operate and maintain the Victorian Desalination Plant mega-project in Melbourne, Australia, up until 2039 -- one of the world's other major public-private partnership desalination mega-projects. The ongoing operations and maintenance of the Rosarito Desalination Project will extend for 37 years from the date of commissioning of the first phase of the project. "We will be operating the plant through an operating subsidiary, in partnership with Suez and NuWater," says Tonner. ATTACHMENT A Next steps: Consolidated is now working towards financial close The facts · APP contract forms the basis for discussions with potential lenders and investors · Equity partners and banks are currently combing through the fine details of contract · Financial close is expected to be in early to mid-2017 The figures · Consolidated Water expects annual revenues from the project to be around MXN1.02 billion ($55.5 million) · Water rates will be indexed to the Mexican national consumer price index The next big milestone is for Consolidated Water to secure funding, which it expects to do in the first half of 2017. An interesting aspect of the project is that it will be financed in Mexican pesos rather than US dollars. The details of the contract released by Consolidated include that water rates will be indexed to the Mexican national consumer price index, and that electrical energy costs incurred by AdR to desalinate and deliver water will be passed through to CEA (subject to efficiency guarantees). The company also said it expects annual revenues from the project to be around MXN1.02 billion ($55.5 million). Tonner, whose background includes 10 years working as a technical adviser to lenders on project finance structures for big projects, explains that details such as these, among other information, will be pored over by banks and investors before they commit funds. "Before the banks put their money in the kitty, they will be reviewing the preliminary details that we've got, satisfying themselves that the project can be built on budget and on time, and operate for those costs. The bankability of a project like this is encapsulated in the agreements between the various partners involved in the APP," he says. The APP was issued in substantially complete form by the Mexican authorities in November 2015, and the final agreement executed in August 2016. "Under Mexican law, they pretty much have to prove that it is the exact same as they started with last November, but incorporating clarifications. Once that deal is done, we can start banking upon it, and the state can start putting the guarantee trusts in place," adds Tonner. Consolidated has been in discussions with potential equity partners and banks throughout the project development process, and these parties are now scrutinising the paperwork; as well as a guarantee mechanism - a trust agreement - that is put in place by the State of Baja California. Once financial close is achieved, the design work begins. "The next really big announcement is financial close, and then we can begin breaking ground," says Tonner. ATTACHMENT B 'Challenges are shared across the border', Mitch Thompson, Otay 17 November 2016, source desalination.biz Water from NSC Agua's desalination plant in Rosarito, Baja California, is a critical component of Otay's diversification efforts. "We want to purchase a minimum of 10 per cent." Mitch Thompson, board president, Otay Water District Otay Water District serves more than 222,000 customers in Otay Mesa, Chula Vista, Jamul, Spring Valley, Rancho San Diego, and unincorporated areas in southeastern San Diego County, California. We are committed to providing a safe and reliable water supply to our customers in an environment of persistent severe drought and adaptation to declining traditional water supplies. Our strategy for current and future water resource management includes water use efficiency, building on investments in recycled water back to 1980, and diversification of water resources to lessen our dependence on traditional supplies from the Colorado River and the Sacramento-San Joaquin Delta. Water from NSC Agua's desalination plant in Rosarito, Baja California, is a critical component of Otay's diversification efforts. The California-Mexico region has long been a unique place where people, manufactured goods, and energy cross the border daily. Challenges and opportunities are shared on both sides of the border, and water is no exception. Like San Diego County and the Otay Water District, Tijuana and the State of Baja California have a long-term strategy to diversify water supplies. Desalinating seawater and purifying recycled water address the need for new, locally controlled, high quality, and drought-proof water supplies in our bi-national region. The Claude "Bud" Lewis Carlsbad Desalination Plant provides high quality drinking water to Otay customers and others throughout the San Diego region. The city of San Diego's Pure Water Program will purify recycled water to supply safe, high quality drinking water to a third of residents by 2035. ATTACHMENT B Otay is interested in purchasing a minimum of 10 per cent of the plant's output for its customers in San Diego County. Our proposed Otay Mesa Conveyance and Disinfection System Project, a four-mile potable water pipeline and metering station, would allow Otay to convey desalinated seawater, produced in Rosarito, from the border to Otay's facilities, meeting up to two-thirds of Otay's projected water use by 2024. Desalinated water from NSC Agua promises to be cost effective for our customers. We anticipate it to be price competitive with the current Colorado River supply and significantly less expensive than treating and reusing sewer water. Otay has applied for a Presidential Permit from the US Department of State to allow the pipeline to cross the border. The project, which is subject to the California Environmental Quality Act, would convey water produced at the desalination plant to Otay's distribution system that includes water quality monitoring and additional disinfection, as necessary. This new water supply, just as any other, will meet the rigorous safeguards of the California Department of Drinking Water that ensure protection of public health. Otay is committed to educating customers and other residents of San Diego County about the benefits of this binational project. Mitch Thompson is board president of Otay Water District s4,s00,000 s3,s00,000 s2,5oo,ooo s1,5oo,ooo Ssoo,ooo JUL AUG SEP ocT NOV -s5oo,ooo -S1,5oo,ooo COMPARATIVE BUDGET SUMMARY NET REVENUES AND EXPENSES FOR THE FIVE MONTHS ENDED NOVEMBER 30, 2016 DEC JAN YTD Actual Net Revenues YTD Variance Net Revenues YTD Budget in Net Revenues So MAY JUNMAR The year-to-date actual net revenues through November show a positive variance of $2,492,808. OTAY WATER DISTRICT COMPARATIVE BUDGET SUMMARY FOR FIVE MONTHS ENDED NOVEMBER 30,2016 Actual Budget YTD Variance Exhibit A Yar o/o $21,869,340 $ 5,377,513 1,406,339 5,535,840 5,467,576 19,349,100 $ 4,931,400 1,234,500 5,5 16,500 5,455,000 428,500 2,520,240 546,113 171,839 19,340 12,516 (97,389\ 13.0o/o ll.3o/o 13.9Yo 0.4Yo 0.2o/o (22.7%)331 l1l Annual Budget $ 44,450,600 g,goo,3oo 2,164,200 72,204,600 12,535,200 884,000 8l,l 38,900 2,918,900 66,200 1,249,200 2,l7g,3oo 4,033,100 156,900 $ 91,741,500 s 31,271,300 3,615,900 1,976,400 1,714,200 l,g4g,ooo 4,57g,goo 988,800 1,429,000 47,422,400 2,g3g,ooo 20,899,900 3,456,300 4,900,r00 250,000 7,482,500 4,093,600 3,466,400 464,500 l,371,goo 961,000 35,000 $ $ 97,741,500 R-EVENUES: Potable Water Sales Recycled Water Sales Potable Energy Charges Potable System Charges Potable MWD & CWA Fixed Charges Potable Penalties Total Water Sales Sewer Charges Meter Fees Capacity Fee Revenues Non-Operating Revenues Tax Revenues Interest Total Revenues EXPENSES: Potable Water Purchases Recycled Water Purchases CWA-lnfrastructure Access Charge CWA-Customer Service Charge CWA-Reliability Charge CWA-Emergency Storage Charge MWD-Capacity Res Charge MWD-Readiness to Serve Charge Subtotal Water Purchases Power Charges Payroll & Related Costs Material & Maintenance Administrative Expenses Legal Fees Transfer to General Fund Reserve Expansion Reserve Betterment Reserve Replacement Reserve Transfer to Sewer General Fund OPEB Trust New Supply Reserve Total Expenses EXCESS REVENUES(EXPENSE) l,2g4,7oo 27,600 640,100 793,900 264,100 65,400 (7,e04) 3,651 44,032 530,3 19 8,369 (6,683) 39,987,659 36,815,000 3,172,659 8.60/o 7,276,796 31,251 684,132 1,324,219 272,469 58,717 (0.60/o) 73.2o/o 6.9Vo 66.\Yo 3.2o/o (10.2%) $ 43,635,243 $ 39,890,800 $ 3,744,443 15,520,220 2,336,192 805,715 727,744 791,710 1,918,356 400, l 85 528,400 14,081,600 2,195,450 805,500 727,500 791,500 1,918,500 400,000 661,200 (1,438,620) (150,742) (2rs) (244) (210) 144 (1 85) 132,800 9.4Yo (10.2%) (6.9o/o) (0.0%) (0.0o/o) 0.0% 0.ïYo (0.0%) 20.7o/o $$$ 23,028,523 1,389,049 7,gg2,g7g r,155,067 7,693,996 113,134 617,700 1,705,700 1,444,300 193,500 571,600 400,400 14,600 21,571,250 (1,457,273) (6.8%) 1,358,900 7,880,800 1,248,325 1,956,572 104,167 617,700 7,705,700 1,444,300 193,500 571,600 400,400 14,600 (29,149) (12,079) 93,258 162,575 (8,e68) (2.1o/o) (0.2%) 7.sYo 8.8o/o (8.60/o) 0.0o/o 0.0o/o 0.0o/o 0.0o/o 0.0o/o 0.Is/o 0.0o/o $ $ 40,219,448 $ 3,415,795 $ 38,967,813 $ 922,987 $ (1,2s1,634) 2,492,808 (3.2o/o) F:/MORPT/F52O17 -'l 1'l 6 '1212112016 9:09 AM OTAY \üATER DISTRICT INVESTMENT PORTFOLIO REVIEW November 30,2016 INVESTMENT OVERVIE\ry & MARKET STATUS: The federal funds rate has remained constant for over 5 years. On December 16,2015, at the Federal Reserve Board's regular scheduled meeting, the federal funds rate was increased from 0.25Vo to 0.500Á" in response to the nation's gradual economic improvement. At the most recent Federal Reserve Board's regular scheduled meeting, on December 14,2016, the federal funds rate was increased from 0.50% to 0.75%" in view of realized and expected labor market conditions and inflation. The Committee judges that there has been considerable improvement in labor market conditions this year, and it is reasonably confident that inflation will rise, over the medium term, to its 2 percent objective. The stance of monetary policy remains accommodatíve, thereby supporting some further strengthening in labor market conditions and a return to 2 percent inflation. In determining the timing and size of future adjustments to the target range for the federal funds rate, they went on to say: "the Committee will ass¿Js realized and expected economìc conditions relative to its objectives of maximum employment and 2 percent inflation. This assessment will take into account a wide range of information, including meosures of labor market conditions, indicators of infløtion pressures ond inflation expectations, and readings onfinøncial ønd international developments. In light of the current shortfall of inflationfrom 2 percent, the Committee will carefully monitor actual and expected progress toward its inflation goal. The Committee expects that economic conditìons will evolve in a m'anner that will warrant only gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run. However, the actual path of the federøl funds rate will depend on the economic outlook as informed by incoming data. " The District's effective rate of return for the month of November 2016 was 0.99o/o, which was four basis points higher than the previous month. At the same time the LAIF return on deposits has improved over the previous month, reaching an average effective yield of 0.68% for the month of November 2016. Based on our success at maintaining a competitive rate of return on our portfolio during this extended period of low interest rates, no changes in investment strategy regarding returns on investment are being considered at this time. The desired portfolio mix is important in mitigating any liquidity risk from unforeseen changes in LAIF or County Pool policy. In accordance with the District's Investment Policy, all District funds continue to be managed based on the objectives, in priority order, of safety, liquidity, and return on investment. PORTFOLIO COMPLIANCE: November 30, 2016 Investment 8.01: Treasury Securities 8.02: Local Agency Investment Fund (Operations) 8.02: Local Agency Investment Fund (Bonds) 8.03: Federal Agency Issues 8.04: Certificates of Deposit 8.05: Short-Term Commercial Notes 8.06: Medium-Term Commercial Debt 8.07: Money Market Mutual Funds 8.08: San Diego County Pool I2.0: Maximum Single Financial Institution State Limit 100% $65 Million 100% 100% 30% 25% 30% 20% 100% 100% Otav Limit r00% $65 Million 100% 100% t5% r0% l0% t0% r00% 50% Otav Actual 0 $9.05 Million 0 70.60% .r0% 0 0 0 15.88% 2.72% Target: Meet or Exceed 100% of LAIF 1-20 r.00 0.80 0.60 0.40 o.20 0.00 Performance Measure FY-l 7 Return on lnvestment Month E LAIF r Otay E¡ Difference art o E U'o É coq t oÉ. 4th Qtr FYI5 July FYI6 Aug FYI6 sep FYI6 lst Qtr FYIó Oct FYIó Nov FYI6 Dec FYIó 2nd Qtr FYI6 Jan FYI6 Feb FYI6 Mar FYI6 3rd Qtr FYI6 Apr FYI6 May FYI6 Jun FYI6 4th QtrFYI6 July FYIT Aug FYIT sep FYIT lst Qtr FYIT Oct FYIT Nov FYIT TLAIF 0.29 0.32 0.33 0.34 0.33 0.36 0.37 0.40 0.38 0.45 0.47 0.51 0.47 0.53 0.55 0.58 0.55 0.59 0.61 0.63 0.6r 0.65 0.68 lOtay 0.73 0.75 0.78 0.78 0.77 0.76 0.79 0.79 0.78 0.80 0.85 0.87 0.84 0.87 0.89 0.96 0.91 0.95 0.92 0.97 0.94 0.95 0.99 trDifference 0.44 0.43 0.45 0.44 0.44 0.40 0.42 0.39 0.40 0.35 0.38 0.36 0.37 0.34 0.34 0.38 0.35 0.36 0.31 0.34 0.33 0.30 0.31 Otay Water District fnvestment Portfolio: n/ 3o / zot6 2,386,501 2.82% 5s9,134,292 70.60% 748 26.58% Total Cash and lnvestments: 584,614,48L tr Banks (Passbook/Checking/CD) I Pools (LAIF & County) tr Agencies & Corporate Notes Par Month End Portfolio Management Portfolio Summary November 30, 2016 Market Value Book Value %of Portfolio Te]m Dãys to Matur¡ty 360 Equiv. 365 Equiv.lnvestments Value Federal Agency lssues- Callable Federal Agency lssues - Coupon Cerlif¡cates of Deposit - Bank Local Agency lnvestmenl Fund (LAIF) San D¡ego County Pool 57,735,000.00 2,000,000.00 81,833.21 9,054,040.26 13,439,706.77 57,319,337.90 1,999,580.00 81,833.21 9,056,811.09 13,346,000.00 57,735,000.00 1,999,232.30 81,833.21 9,054,040.26 13,439,706.77 1.056 0.661 0.030 0.669 0.959 1.071 0.670 0.030 0.678 0.972 70.14 2.43 0.10 11.00 16.33 959 640 731 1 1 772 116 417 1 1 82,310,580.24 81,803,562.20 82,309,812.54 100.00%G89 545 0.987 1.00tlnvestments Cash Passbook/Checkino(not included ¡n y¡efd calculations) Total Cash and lnvestments 2,304,668.20 2,304,668.20 2,304,668.20 0.326 0.331 84,615,248.44 84,108,230.40 84,614,480.74 689 545 0.987 1.001 Total Earnings November30 Month Ending Fiscal Year To Date Current Year Average Daily Balance Effective Rate of Return that the investments contained in this Officer Reporting petiod 11 101 12016-1 1 13012016 Datâ Updated: SET_ME8: 1211612016 09:14 Run Data: 1211612016 - 09:14 69,139.25 84,977,784.96 0.99% 336,562.58 84,583,239.94 0.95% report are made in accordance with the District lnvestment Policy Number 27 adopted by the Board of Directors on May 4, 2016. The market value The investments provide sufficient liquidity to meet the cash flow requirements of the District for the next six months of expenditures. /2-/6-/é Portfolio OTAY NL! AP PM (PRF_PMr) 7.3.0 ReportVer.7.3.5 custP lnvestment #lssuer Ave¡age Balance Month End Portfolio Management Portfolio Details - lnvestments November 30, 2016 Purchase Dats Par Value Market Value StatedBookValue Rate Page I YTM Daysto Matur¡ty 360 Maturity Dates&P Federal Agency lssues- Callable 2301 2345 2363 2355 2346 2362 2358 2348 2354 2368 2336 2334 2338 2360 2347 2352 2357 2359 2356 2361 2364 2365 2366 ¿ôo I 2369 2371 2373 2370 2372 3134G5447 3134G8NM7 3134G9D38 3130A8547 3130A7H73 31 33EGJUO 3130A8KR3 3134G8XA2 3133EGBG9 3130A9C90 31 35G0G64 3136G2R665 313046U28 3l34G9ZR1 3134GgA\^r/ 313oA7VMC 3133EGCZ6 3133EGGS8 3134G95L2 3133EGJR7 3136G33N3 31 36G33N3 3136G33N3 3136G34U6 3133EGWF8 31 30A9NJ6 3136G4DR1 3l36G4DZ3 3136G4FY4 0613012014 0312912016 0612912016 0512612016 0312912016 071o512016 0612312016 0412712016 0512312016 0912812016 10130120't5 1111912015 12t28t2015 06t28t2016 0412612016 05t24t2016 0610612016 0612712016 0612812016 0710512016 08/30/201 6 0813012016 08/30/2016 08/30/2016 1010312016 10t26t2016 1012712016 1012512016 1110812016 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 1,030,000.00 2,705,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,480.00 2,000,060.00 1,989,960.00 1,992,r140.00 1,994,060.00 1,984,720.00 1,987,820.00 1,989,400.00 I,989,360.00 1,985,760.00 I,989,920.00 2,000,320.00 2,000,160.00 't,989,140.00 I,984,280.00 1,988,140.00 1,993,040.00 1,974,240.00 1,984,280.00 1,989,500.00 1,O14,694.20 2,664,803.70 I,970,280.00 1,972,920.00 'l,979,240.00 1,975,720.00 1,974,800.00 1,975,240.00 1,984,560.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 1,030,000.00 2,705,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 1,,30t2016 09129t20't7 1212912017 oir'2612018 031291201A 07105t2018 07t06t2018 07t27t2018 0812312018 09128t2018 10t29t2018 1111912018 1A2A2U8 1212812018 04t26t2019 0512412019 06/06/2019 06t27t2019 06t28t2019 0710512019 0812812019 0812812019 0812812019 0e12812019 1010312019 1011112019 1011712019 10125t2019 1110812019 Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federâl Home Loan Bank Federâl Home Loan Bank Federal Farm Cred¡t Bank Federal Home Loan Bank Federal Home Loan Mortgage Federal Farm Credit Bank Federal Home Loan Bank Fannie Mae Fannie Mae Federal Home Loan Bank Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Bank Federal Farm Credit Bank Federal Farm Cred¡t Bank Federal Home Loan Mortgage Federal Farm Credit Bank Federal Nat¡onal Mortage Assoc Federal National Mortage Assoc Federal Nalional Mortage Assoc Federal National Mortage Assoc Federal Farm Credit Bank Federal Home Loan Bank Federal National Mortage Assoc Federal National Mortage Assoc Federal National Mortage Assoc Subtotal and Average 0.650 0.850 0.700 0.900 1.000 0.820 0.820 1.000 1.000 1.050 1.'100 Lt50 1.375 1.000 1.150 1.250 1.300 1.200 1.300 1.020 1.125 1.125 1.125 1.125 1.170 1.200 1.100 't.200 1.250 AA 0.641 0.838 0.690 0.888 0.986 0.809 0.809 0.986 0.986 1.036 1.085 1.134 1.356 0.986 1.134 1.233 '1.282 1.184 '1.282 1.006 1.110 1.1 10 1.1 10 1.1 10 1.154 1.183 L085 1.184 1.233 29 302 393 452 483 581 582 603 630 666 697 718 757 757 876 904 917 938 939 946 1,000 1,000 1,000 1,000 1,036 1,044 1,050 1,058 1,072 AA AAA AAA AA AA AA AA AA AA 57,268,333.33 57,735,000.00 57,319,337.90 57,735,000.00 1.056 772 Federal Agency lssues - Coupon 3133EEC73 2329 Federal Farm Credit Bank Subtotal and Average Data Updated: SET_ME8: 1211612O16 09:'14 0612612015 2,000,000.00 I,999,580.00 1,999,232.30 0.550 AA 0.661 116 03127t2017 0.661 116 Portfolio OTAY NL! AP PM (PRF_PM2) 7.3.0Run Dâte: 12116/2016 - 09:14 I,999,1 36.34 2,000,000.00 1,999,580.00 r,999,232.30 Report Ver. 7.3.5 CUSIP lnvestment #lssuer Avefage Balanco Month End Portfolio Management Portfolio Details - Investments November 30, 2016 Purchase Date Par Value Market Value Stated BookValue Rate s&P YTM Daysto 360 Matur¡ty Page2 Matur¡ty Date Certificates of Deposit - Bank 20500031 83-7 2341 011222016 81,833.21 81,833.21Cal¡fornia Bank & Trust Subtotal end Average 8t,833,21 81,833,21 81,833.21 81,833.21 81,833.21 0.030 0.030 417 0112212018 0.030 417 Local Agency lnvestment Fund (LAlFl LAIF LAIF BABS 2O1O 9001 9012 STATE OF CALIFORNIA STATE OF CALIFORNIA Subtotal and Average oTto'v2016 9,054,040.26 0.00 9,056,81 1.09 0.00 9,054,040.26 0.00 0.678 0.267 0.669 0.263 10,237,373.59 9,054,040.26 9,056,811.09 9,054,040.26 0.669 1 San Diego County Pool SD COUNTY POOL 9OO7 13,439,706.77 13,346,000.00 13,439,706.77 0.972 0.959San Diego County Subtotâ! and Average 13,439,706:77 13439,706.77 13,346,000.00 13,439,706.77 0.959 1 Total and Average 84,977,784.96 82,310,580.24 81,803,562.20 82,t09,812.54 0.987 545 Data Updated: SET_ME8: 1211612016 09:14 Portfolio OTAY NL! AP PM (PRF_PM2) 7.3.0Run Þate: 121612016 - 09:14 Month End Portfolio Management Portfolio Details - Cash November 30, 2016 Page 3 Stated YTM DaystoIllerketvalue Bookvalue Rate S&P 360 MaturityCUSIPInvestnent #Averagê Balance Purchese Datelssuer Par Value Union Bank UNION MONEY PETTY CASH UNION OPERATING PAYROLL RESERVE.IO COPS RESERVEIO BABS UBNA-2o10 BOND UBNA-FLEX ACCT 9002 9003 9004 9005 9010 901 1 9013 9014 0.010 0.400 0.010 0.010 0.010 0.000 0.395 0.000 0.010 0.010 0.000 0.000 STATE OF CALIFORNIA STATE OF CALIFORNIA STATE OF CALIFORNIA STATE OF CALIFORNIA STATE OF CALIFORNIA STATE OF CALIFORNIA STATE OF CALIFORNIA STATE OF CALIFORNIA Average Balance 07t01t2016 071o112016 07to1t2016 10,000.67 2,950.00 1,904,s52.71 342,O22.27 8,085.59 21,235.24 0.00 15,821.72 10,000.67 2,950.00 1,904,552.71 342,022.27 8,085.59 21,235.24 0.00 15,821.72 10,000.67 2,950.00 1,904,552.7',| 342,O22.27 8,085.59 21,235.24 0.00 15,82't.72 0.00 Total Cash and lnvestments Data Updated: SET_ME8: 1211612016 O9:.14 84,977,784.96 84,615,248.4 84,108,230.40 84,614,ß0.74 0.987 545 Portfolio OTAY NL! AP PM (PRF_PM2) 7.3.0Run Date: 12116/2016 - 09:14 Month End GASB 3l Gompliance Detail Sorted by Fund - Fund November 1,2016 - November 30, 2016 CUSIP lnvestnent# Fund lnvesûnent Class Maturity Beginning lnvested ValueDate Purchase of Principal Add¡t¡on to Principal Redemption of Pr¡nc¡pal AdjusÍnent ¡n Value Amort¡zation Adjustmênt Change in Merket Value Ending lnvestêd Value Fund: Treasury Fund LAIF 9001 UNION MONEY 9OO2 PETTYCASH 9OO3 UNION OPERATING 9OO4 PAYROLL 9OO5 SD COUNTY POOL 9OO7 RESERVE.IOCOPS 9O1O RESERVE-IOBABS 9011 LAIF BABS 2O1O 9012 UBNA-2010 BOND 9013 UBNA-FLEXACCT 9OI4 3134G5A47 2301 3133EEC73 2329 3136G2R665 2334 3135G0G64 2336 313046U28 2338 2050003183-7 2341 3134G8NM7 2345 3130A7H73 2346 3134G94W 2347 3134G8XA2 2348 3130A7WK7 2352 3133EGBG9 2354 313048547 2355 3134G9SL2 2356 3í33EGCZ6 2357 313048KR3 2358 3133EGGS8 23s9 3134G92R1 2360 3'133EGJR7 2361 99 oo oo 99 ôo 99 99 99 99 oo 99 99 oo 99 99 oo oo oo ôo 99 99 99 99 99 99 99 oo 99 99 oo Fair Value Amort¡zed Amortized Amortized Amortized Fair Value Amortized Amortizèd Fair Value Amorlized Amortized Fair Value Amortized Amorlized Amorlized Amortized Amorlized Amort¡zed Fair Value Fair Value Fa¡r Value Fair Value Fair Value Fair Value Amortized Fair Value Fair Vâlue Fair Value Fa¡r Value Amortized 12t3012016 0312712017 1111912018 1012912018 12t2812018 01122t2018 0912912017 0312912018 0412612019 0712712018 05t24t2019 o812312018 0212612018 06128t2019 0610612019 0710612018 06t27t2019 12128t2018 0710512019 9,757,025.31 2,O34,O02.31 2,950.00 1,386,835.27 27,861.29 13,363,000.00 8,084.06 2'1,231.33 0.00 0.00 23,682.66 2,001,060.00 1,999,033.76 2,000,000.00 2,000,000.00 2,000,000.00 81,833.21 2,000,000.00 2,000,320.00 1,886,600.00 I,998,000.00 2,001,520.00 1,999,640.00 1,998,900.00 2,000,000.00 2,001,320.00 1,995,680.00 I,992,580.00 1,992,580.00 2,000,000.00 6,000,000.00 2,024,000.67 0.00 517 ,717.44 314,160.98 0.00 1.53 3.91 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 6,700,000.00 4,048,002.31 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7,860.94 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -214.22 0.00 0.00 0.00 0.00 -17,000.00 0.00 0.00 0.00 0.00 0.00 -580.00 0.00 0.00 0.00 0.00 0.00 0.00 -6,260.00 -12,320.00 -8,600.00 -1 3,380.00 -10,280.00 -6,460.00 0.00 -8,280.00 -7,860.00 -1 8,340.00 -3,440.00 0.00 9,056,81 1.09 10,000.67 2,950.00 1,904,552.71 342,022.27 1 3,346,000.00 8,085.59 21,235.24 0.00 0.00 15,821.72 2,000,480.00 1,999,232.30 2,000,000.00 2,000,000.00 2,000,000.00 81,833.21 2,000,000.00 1,994,060.00 1,984,280.00 1,989,400.00 1,988,140.00 1,989,360.00 1,592,440.00 2,000,000.00 I,993,040.00 1,987,820.00 1,974,240.00 1,989,140.00 2,000,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 I 98.54 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Data Updated: SET_ME8: 1211612O16 09:14 Portfolio OTAY NL! AP GD (PRF_GD) 7.1.1 ReportVer. 7.3.5 Run Date: '12116/2016 - 09:14 CUSlP lnvestnênt# Fund lnvestment Class Maturity Date Addit¡on to Principal Redemptlon of Princ¡pal Amortlzation Adjustment Change in Market Value Month End GASB 3l Compl¡ance Detail Sorted by Fund - Fund Beg¡nning Purchese of PrÍncipallnvested Value Adjustnent ¡n Value Page2 Ending lnvested Valuê Fund: Treasury Fund 3133EGJUO 3134G9D38 3136G33N3 3136G33N3 3136G33N3 3136G34U6 3130A9C90 3I33EGWF8 3136G4Dz3 3l30A9NJ6 3136G4FY4 3136G4DR1 Fair Value Fair Value Fair Value Fair Value Fair Value Fa¡r Value Fair Value Amortized Fâir Value Fa¡r Value Falr Valuê Fa¡r Value 07lo5l201a 12t29t2017 0812812019 0812812019 0812812019 0812812019 0912812018 1010312019 10t25t2019 10t11t2019 1110812019 1011712019 1,992,740.00 1,995,320.00 1,024,942.70 2,691,718.45 1,990,180.00 1,993,220.00 1,995,120.00 2,000,000.00 1,996,660.00 I,996,700.00 0.00 1,994,280.00 -8,020.00 -5,360.00 -10,248.50 -26,914.75 -19,900.00 -20,300.00 -9,360.00 0.00 -21,420.00 -20,980.00 -15,440.00 -19,480.00 1,984,720.00 1,989,960.00 1,014,694.20 2,664,803.70 1,970,280.00 1,972,920.O0 1,985,760.00 2,000,000.00 1,975,240.00 't,975,720.00 1,984,560.00 I,974,800.00 2362 2363 2364 2365 2366 2367 2368 2369 2370 2371 2372 2373 99 99 oô oo 99 99 99 99 oo ôô oo 99 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,000,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Subtotal 84,354,620.35 2,000,000.00 8,855,884.53 10,755,863.25 198.54 -290,4t7.47 84,164,&2,70 Data Updated: SET_ME8: 1211612O16 09:14 Total 84,354,620.35 2,000,000.00 8,85s,884.53 10,755,863.25 198.54 -290,437.47 84,164,402,70 Portfolio OTAY NL! AP GD (PRF_GD) 7.1.1 Report Ver. 7.3.5 Run Date: 12116/2016 - 09:14 Month End Activity Report Sorted By lssuer November 1,2016 - November 30, 2016 Par Value Par Value CUSIP lnvestunent# Percent lssuer of Portfolio Beg¡nn¡ng Balance Curfent Rate Transact¡on Date Purchases or Deposits Redemplions or VVithdrawals Ending Balance lssuer: STATE OF CALIFORNIA Un¡on Bank UNION MONEY UNION OPERATING PAYROLL RESERVE.IO COPS RESERVE.IO BABS UBNA-FLEX ACCT 9002 9004 9005 9010 901 1 9014 STATE OF CALIFORNIA STATE OF CALIFORNIA STATE OF CALIFORNIA STATE OF CALIFORNIA STATE OF CALIFORNIA STATE OF CALIFORNIA 0.010 0.400 0.01 0 0.010 2,O24,000.67 517,717.44 314,160.98 1.53 3.91 0.00 4,048,002.31 0.00 0.00 0.00 0.00 7,860.94 Subtotal and Balance 3,504,646.92 2,855,884.53 4,0s5,863.25 2,304,668.20 Local Agency lnvestment Fund (LAIF) LAIF 9OO1 STATE OF CALIFORNIA Subtotal and Balance lssuerSubtotal 13.424% 0.678 6,000,000.00 6,700,000.00 9,754,040.26 t3,258,687.18 6,000,000.00 5,700,000.00 9,054,0¿10.26 8,855,884.53 10,755,863.25 11,358,708.46 lssuer: California Bank & Trust Certificates of Deposit - Bank Subtotal and Balance lssuer Subtotal 81,833,21 o.097%81,833.21 81,833.21 0.00 0.00 81,833.21 lssuer: Fannie Mae Federal Agency lssues- Callable Subtotal and Balance lssuer Subtotal 4,000,000.00 4.727%4,000,000.00 4,000,000.00 0.00 0.00 4,000,000.00 lssuer: Federal Farm Credit Bank Data Updated: SET_ME8: 1211612016 09:14 Portfolio OTAY NL! AP oA (PRF_DA) 7.2.0 Report Ver. 7.3.5 Run Dat€: l2l16/2016 - 09:14 lnvestment # Percent lssuer ofPortfol¡o Month End Activ¡ty Report November 1, 2016 - November 30, 2016 Par Valuo Boginning Balance Page 2 Par Valuo custP Curent Rate Transaction Date Purchases or Depos¡ts Redemptions or Wthdrawals Ending Balance lssuer: Federal Farm Gredit Bank Federal Agency lssues- Callable Subtotal and Balance 12,000,000.00 12,000,000.00 Federal Agency lssues - Goupon Subtotal and Balance lssuer Subtotal 2,000,000,00 16.545%14000,000.00 2,000,000.00 0.00 0.00 14,000,000.00 lssuer: Federal Home Loan Bank Federal Agency lssues- Gallable Subtotal and Balance lssuer Subtotal 14,000,000.00 14,000,000.00 16.s45%14,000,000.00 0.00 0.00 14,000,000.00 lssuer: Federal Home Loan Mortgage Federal Agency Issues- Callable Subtotal and Balance lssuerSubtotal 16.545% 14,000,000.00 14,000,000.00 14,000,000,00 0.00 0.00 14,000,000.00 lssuer: Federal National Mortage Assoc Federal Agency lssues' Callable 3136G4FY4 2372 1.250 1110812016 2,000,000.00 0.00Federal National Mortage Assoc Subtotal end Belance lssuerSubtotal 16.232% 11,735,000.00 2,000,000,00 0.00 13,735,000.00 11,735,000.00 2,000,000.00 0.00 13,735,000.00 lssuer: San Diego County San Díego County Pool Subtotal and Balance lssuer Subtotal 13,439,706.77 15.883%13,¿ß9,706.77 Data Updated: SET_ME8: 1211612O16 O9:14 13,439,706.77 0.00 0.00 13,439,706.77 Portfolio OTAY NL! AP DA (PRF_DA) 7.2.0 ReportVer. 7.3.5 Run Date: 1211612016 - 09:14 Month End Activity Report November 1, 2016 - November 30, 2016 Page 3 Par Value Beg¡nn¡ng Balanco Transaction Datê Purchases or Depos¡ts Redempt¡ons or Wthdrawals Par Value Percent of Portfol¡o Current Rate End¡ng Tota! 100.000%84,515,227.16 10,855,884.53 10,755,863.25 Balanco 84,615,24J',.4 Data Updated: SET_ME8: 121'1612016 09:14 Portfolio OTAY NL! AP oA (PRF-DA) 7.2.0 Report Ver. 7.3.5 Run Date: 121612016 - 09:14 Month End Duration Report Sorted by lnvestment Type - lnvestment Type Through 1113012016 lnvestment Class Book Value Market Value Current Rate Par YTM Current360 Yield Maturity/ Mod¡f¡ed Call Date Durat¡onSecur¡ty lD lnvestrnent# Fund lssuer Value 3134G5A47 3136G2R665 3135G0G64 313046U28 3134G8NM7 3130A7H73 3134G94\M 3l34G8XAz 313047WK7 3133EGBG9 313048547 3134GeSL2 3133EGCZ6 313048KR3 3133EGGS8 3134G92R1 3133EGJR7 31 33EGJUO 3134G9D38 3136G33N3 3136G33N3 3136G33N3 31 36G34U6 313049C90 3133EGWF8 3136G4D23 31 30A9NJ6 3r36G4FY4 3136G4DRl 2301 2334 2336 2338 2345 2346 2347 2348 2352 2354 2355 2356 2357 2358 2359 2360 2361 2362 2363 2364 2365 2366 2367 2368 2369 2370 2371 2372 2373 99 99 99 99 99 99 99 oo 99 99 99 oô ôo 99 99 99 oô 99 99 99 99 99 99 99 99 99 oo 99 99 Federal Home Loan Mortgagè Fann¡e Mae Fannie Mae Federal Home Loan Bank Federal Home Loan Mortgage Federal Home Loan Bank Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Bank Federâl Farm Credit Bank Federal Home Loan Bank Federal Home Loan Mortgage Federal Fârm Credit Bank Federal Home Loan Bank Federal Farm Credil Bank Federal Home Loan Mortgage Federal Farm Credit Bank Federal Farm Credit Bank Federal Home Loan Mortgage Federal National Mortage Assoc Federal National Mortage Assoc Federal Nat¡onal Mortage Assoc Federal Nat¡onal Mortage Assoc Federal Home Loan Bank Federal Farm Credit Bank Federal National Mortage Assoc Federal Home Loan Bank Federal Nat¡onâl Mortâge Assoc Federal National Mortage Assoc Fair Amort Amort Amort Amort Fair Fair Fair Fair Fair Fair Amort Fair Fair Fair Fair Amort Fa¡r Fair Fair Fair Fair Fair Fa¡r Amort Fair Fair Fair Fair 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 1,030,000.00 2,705,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 I,030,000.00 2,705,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,480.00 2,000,320.00 1,989,920.00 2,000,160.00 2,000,060.00 I,994,060.00 1,984,280.00 1,989,400.00 1,988,140.00 1,989,360.00 I,992,440.00 1,984,280.00 1,993,040.00 I,987,820.00 1,974,240.00 1,989,1 40.00 1,989,500.00 1,9U,720.00 1,989,960.00 1,0't4,694.20 2,664,803.70 'r,970,280.00 1,972,920.00 1,985,760.00 I,979,240.00 1,975,240.00 1,975,720.00 I,984,560.00 1,974,800.00 .6500000 1.1 50000 1. t 00000 1.375000 .8500000 1.000000 1.150000 1.000000 1.250000 1.000000 .9000000 1.300000 1.300000 .8200000 L200000 L000000 1.020000 .8200000 .7000000 1.125000 1.t 25000 1.125000 1.125000 1.050000 1.1 70000 1.200000 '1.200000 1.250000 't.100000 12t30t2016 11t19t2018 1012912018 1212812018 0912912017 03t2912018 0412612019 07t27t2018 0512412019 0812312018 02126t2018 06t28t2019 06/06/201 I 0710612018 06127120'19 1212812018 0710512019 0710512018 't2t29t2017 oat2812019 0812812019 0812812019 oa|28t2019 0912812018 1010312019 1012512019 1011112019 11108120't9 1011712019 0.641 1.134 1.085 1.356 0.838 0.986 1.134 0.986 1.233 0.986 0.888 1.282 1.282 0.809 1.184 0.986 1.006 0.809 0.690 1.110 1.110 1.110 1.110 1.036 1.154 1.184 1.183 1.233 1.085 0.602 1.'t42 1.368 1.371 0.847 1.226 1.484 1.325 1.494 1.313 1.662 1.613 1.441 1.206 1.714 1.266 1.226 1.306 1.170 1.682 1.682 1.682 1.632 1.447 1.545 1.639 1.636 1.520 1.549 0.079 1.938 1.881 2.027 0.822 1.312 2.357 1.633 2.431 1.701 't.219 2.506 2.447 1.575 2.506 2.037 2.540 1.572 1.066 2.676 2.676 2.676 2.677 1.796 2.774 2.832 2.793 2.867 2.AM Data Updated: SET_ME8: 1211612016 09114 Portfolio OTAY NLI AP DU (PRF_DU) 7.1.1 R€portVer.7.3.5 Run Dale: 12116/2016 - 09:14 Page 1 Month End Duration Report Sorted by lnvestment Type - lnvestment Type Through 1113012016 lnvêstment Cless Book Vâluê Value Market Value Currènt Rate Pat YTM Current360 Yleld Matur¡ty, Mod¡fied Call Datê DuratlonSecuritvlD lnvsstment# Fund lssuêr 3133EEC73 2329 2050003183-7 2341 LA|F 9001 LA|F BABS 2010 9012 SDCOUNTY 9OO7 Federal Farm Credit Bank Cal¡fornia Bank & Trust STATE OF CALIFORNIA STATE OF CALIFORNIA San Diego County 1,999,232.30 81,833.21 9,054,040.26 0.00 13,439,706.77 2,000,000.00 81,833.21 9,054,040.26 0.00 13,439,706.77 I,999,580.00 g',t,833.21 9,056,81L09 0.00 13,346,000.00 .5500000 .0300000 .6780000 .2670000 .9720000 0.661 0.030 0.669 0.263 0.959 99 99 99 99 99 Amort AmÕrt Fair Fair Fair 0.592 0.030 0.678 0.267 0.972 0312712017 01t22t20't8 0.317 1.142 0.000 0.000 0.000 Report Tota!82,309,812.54 82,310,580.24 81,803,562.20 1.232 l.¡f60 Portfolio OTAY NL! AP DU (PRF_DU) 7.r.1 Raport Ver. 7.3.5 Data Updated: SET_ME8: 1211612016 09:14 Run Date: 12/16/2016 - 09:14 Page2 Month End lnterest Earnings Sorted by Fund - Fund November 1, 2016 - November 30, 2016 Yield on Beginning Book Value Adjusted lnterest Earnings CUS¡P lnvestment# Fund Security Type Ending Par Value Beginn¡ng Book Value End¡ng Book Value Matur¡ty CurrentAnnualizedDate Rate Yield lnterest Earned Amortizationl Adjusted lnterestAccret¡on Earnings Fund: Treasury Fund LAIF 9001 UNION MONEY 9OO2 UNION OPERATING 9OO4 SD COUNTY POOL 9OO7 RESERVE-IOCOPS 9O1O RESERVE.IOBABS 9011 3134G5447 2301 3133EEC73 2329 3136G2R665 2334 3135G0G64 2336 313046U28 2338 2050003183-7 234'.1 3134G8NM7 2345 313047H73 2346 3134G94W 2347 3134G8X42 2348 3130A7WK7 2352 3133EGBG9 2354 313048547 2355 3134G9S12 2356 3133EGCZ6 2357 313048KR3 2358 3133EGGS8 23s9 3134G92R1 2360 3133EGJR7 2361 3133EGJU0 2362 3134G9D38 2363 3136G33N3 2364 3136G33N3 2365 99 oo 99 99 99 99 oo 99 99 oo oô 99 99 99 oo 99 99 99 oô 99 oo ôô oo oo 99 99 oo 99 99 LA1 PAl PA1 LA3 PAl PA1 MCl FAC MC1 MCl MCl BCD MC1 MCl MC1 MCl MC1 MCI MC1 MCl MC1 MCl MCI MC1 MC1 MCl MCl MCl MC1 9,054,040.26 10,000.67 1,904,552.71 '13,439,706.77 8,085.59 21,235.24 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 81,833.21 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 1,030,000.00 2,705,000.00 9,754,040.26 2,034,002.31 I,386,835.27 13,439,706.77 8,084.06 21,231.33 2,000,000.00 1,999,033.76 2,000,000.00 2,000,000.00 2,000,000.00 81,833.21 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 I,030,000.00 2,705,000.00 9,0s4,040.26 10,000.67 1,904,552.71 13,439,706.77 8,085.59 21,235.24 2,000,000.00 1,999,232.30 2,000,000.00 2,000,000.00 2,000,000.00 81,833.21 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 1,030,000.00 2,705,000.00 1213012016 03127t2017 1111912018 1012912018 't2t28t2018 0'I22t20't8 0912912017 03t29t2018 041?612019 07t27t2018 0512412019 08t23t2018 02t2612018 0612812019 06t06t2019 07t06t2018 0612712019 1?i2812018 0710512019 0710512018 1212912017 0812812019 08t28t2019 5,704.88 0.68 584.61 10,737.04 0.07 0.17 1,083.34 1,115.21 1,887.43 1,833.33 2,291.67 2.04 1,416.67 1,666.66 1,916.67 1,666.67 2,083.33 1,666.66 1,500.00 2J66.67 2,166.67 1,366.67 2,000.00 1,666.67 I,700.00 1,366.67 I,1 66.67 965.62 2,535.93 Portfolio OTAY NL! AP rE (PRF_|E) 7.2.0 ReportVer.7.3.5 0.678 0.010 0.400 0.972 0.010 0.010 0.650 0.550 1.150 1.100 1.375 0.030 0.850 1.000 1.150 1.000 1.250 1.000 0.900 1.300 1.300 0.820 '1.200 1.000 1.020 0.820 0.700 1.125 1.125 0.712 0.513 0.972 0.011 0.010 0.659 0.679 1.'t48 1.115 1.394 0.030 0.862 1.O14 '1.166 1.014 1.267 1.O14 0.913 1.318 1.318 0.831 1.217 1.0'14 1.O34 0.831 0.710 1.141 1.141 5,704.88 0.68 584.61 '10,737.O4 0.07 0.17 1,083.34 916.67 1,887.43 1,833.33 2,291.67 2.04 1,416.67 1,666.66 '1,916.67 1,666.67 2,083.33 1,666.66 1,500.00 2,166.67 2,166.67 1,366.67 2,000.00 1,666.67 1,700.00 1,366.67 1,166.67 965.62 2,535.93 0.00 0.00 0.00 0.00 0.00 0.00 0.00 198.54 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Data Updated: SET_ME8: 1211612016 09:14 Run Dâte: '12l16/2016 - 09:14 Month End lnterest Earnings November 1,2016 - November 30, 20'16 Beg¡nning Page 2 Adjustod lntorest Earnings CUSIP lnvestment# Fund Sècur¡ty Type End¡ng Par Value Book Value Ending MaturltyBookvalue Date CurrentAnnualÌzedRete Yield lnterest Earned Amortization/ Adjusted lnterestAccret¡on Earn¡ngs Fund: Treasury Fund 3136G33N3 3136G34U6 3130A9C90 3133EGWF8 3136G4D23 313049NJ6 3136G4FY4 3136G4DR1 2366 2367 2368 2369 2370 2371 2372 2373 99 99 99 99 99 99 99 99 MC1 MC1 MC1 MC1 MC1 MC1 MC1 MC1 1.141 1.141 1.065 1.186 1.217 1.217 1.267 1.',|15 1,875.00 1,875.00 1,750.00 1,950.00 2,000.00 2,000.00 1,597.22 1,833.33 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,875.00 1,875.00 1,750.00 1,950.00 2,000.00 2,000.00 1,597.22 1,833.33 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 0.00 2,000,000.00 2,000,000.00 0812812019 2,000,000.00 0812812019 2,000,000.00 09128t2018 2,000,000.00 10103t2019 2,000,000.00 1012512019 2,000,000.00 10111 12019 2,000,000.00 1 1 10812019 2,000,000.00 10117 12019 1.125 1.125 1.050 1.170 1.200 1.200 1.250 1.'100 Subtotel 84,254,454,45 84159,766.97 84,253,686.75 0.978 68,940.71 198.54 69,139.25 Data Updated: SET_ME8: 1211612016 O9:14 Total 84,254,4U45 84,459,766.97 84,253,686.75 0.978 68,940.71 198.54 69,139.25 Portfolio OTAY NL! AP rE (PRF_tE) 7.2.0 ReportVer 7.3.5 Run Dâte: 12l16/201ô - 09:14 Check #Check Total 8,534.52 4,770.52 2,438.00 17,180.00 25,167.10 CHECK REGISTER Otay Water District Date Range: 11/24/2016 - 12/21/2016 Date Vendor Vendor Name Invoice Inv. Date Description Amount 2047203 12/07/16 01910 ABCANA INDUSTRIES 998010 11/10/16 SODIUM HYPOCHLORITE 2,881.34 998362 11/17/16 SODIUM HYPOCHLORITE 1,924.73 998011 11/10/16 SODIUM HYPOCHLORITE 816.38 998363 11/17/16 SODIUM HYPOCHLORITE 766.44 998012 11/10/16 SODIUM HYPOCHLORITE 633.89 998463 11/18/16 SODIUM HYPOCHLORITE 573.39 998284 11/16/16 SODIUM HYPOCHLORITE 480.22 997315 10/26/16 SODIUM HYPOCHLORITE 458.13 2047290 12/21/16 01910 ABCANA INDUSTRIES 998631 11/23/16 SODIUM HYPOCHLORITE 2,418.40 998899 12/01/16 SODIUM HYPOCHLORITE 1,089.14 998900 12/01/16 SODIUM HYPOCHLORITE 648.30 998633 11/23/16 SODIUM HYPOCHLORITE 614.68 2047250 12/14/16 08488 ABLEFORCE INC 7266 12/08/16 SHAREPOINT SERVICES (11/2/16-11/18/16)1,125.00 1,125.00 2047251 12/14/16 13901 ADVANCED INDUSTRIAL SVCS INC 00016671 12/06/16 RETAINAGE RELEASE 44,230.74 44,230.74 2047204 12/07/16 12174 AECOM TECHNICAL SERVICES INC 46 11/15/16 DISINFECTION SYSTEM (ENDING 10/28/16)4,392.13 4,392.13 2047291 12/21/16 11462 AEGIS ENGINEERING MGMT INC 1419 11/28/16 DEVELOPER PLAN REVIEW (10/15/16-11/18/16)13,055.74 13,055.74 2047205 12/07/16 07732 AIRGAS SPECIALTY PRODUCTS INC 131464025 11/09/16 AQUA AMMONIA 2,051.00 131464024 11/09/16 AQUA AMMONIA 387.00 2047292 12/21/16 13753 AIRGAS USA LLC 9941211713 11/30/16 BREATHING AIR BOTTLES 52.02 52.02 2047252 12/14/16 06261 ALCANTARA, CYNTHIA 120516120816 12/09/16 TRAVEL EXPENSE REIMB (12/5/16-12/8/16)936.05 936.05 2047206 12/07/16 14462 ALYSON CONSULTING CM201671 11/14/16 MGMG/INSP (10/1/16-10/31/16)9,800.00 CM201672 11/14/16 MGMT/INSP (10/1/16-10/31/16)3,670.00 CM261074 11/14/16 MGMT/INSP (10/1/16-10/31/16)1,760.00 CM201673 11/14/16 MGMT/INSP (10/1/16-10/31/16)1,050.00 CM201670 11/14/16 MGMT/INSP (10/1/16-10/31/16)600.00 CM201669 11/14/16 MGMT/INSP (10/1/16-10/31/16)300.00 2047253 12/14/16 17709 ANDREA THORKILDSEN Ref002472572 12/14/16 UB Refund Cst #0000194184 157.25 157.25 2047207 12/07/16 13171 ARCADIS US INC 0802513 11/16/16 DESIGN SERVICES (7/1/16-10/23/16)24,183.10 0817158 11/17/16 DESIGN SERVICES (7/1/16-10/23/16)984.00 2047254 12/14/16 17706 ARTHUR J MILLER Ref002472569 12/14/16 UB Refund Cst #0000009059 32.87 32.87 2047208 12/07/16 17264 ARTIANO SHINOFF 214946 11/21/16 LEGAL SERVICES (OCT 2016)31,659.72 31,659.72 2047172 11/30/16 07785 AT&T 000008811300 11/02/16 TELEPHONE SERVICES (10/2/16-11/1/16)6,010.13 6,010.13Page 1 of 9 Check #Check Total CHECK REGISTER Otay Water District Date Range: 11/24/2016 - 12/21/2016 Date Vendor Vendor Name Invoice Inv. Date Description Amount 809.27 889.53 2047172 11/30/16 07785 AT&T 000008811300 11/02/16 TELEPHONE SERVICES (10/2/16-11/1/16)6,010.13 6,010.13 2047255 12/14/16 07785 AT&T 000008955270 12/02/16 TELEPHONE SERVICES (11/2/16-12/1/16)6,002.05 6,002.05 2047173 11/30/16 17666 BAN ABBOD Ref002470504 11/29/16 UB Refund Cst #0000122587 38.53 38.53 2047174 11/30/16 03509 BELL, RITA 112816 11/28/16 EXPENSE REIMBURSEMENT 395.66 395.66 2047256 12/14/16 17613 BIENVENUE, DONALD 12122016DB 12/12/16 TUITION REIMBURSEMENT 170.29 170.29 2047293 12/21/16 12577 BLASTCO INC 111302016 11/23/16 978-1 & 850-2 RESERVOIRS (ENDING 11/30/16)11,922.50 11,922.50 2047209 12/07/16 14112 BSE ENGINEERING INC 75400409 10/31/16 ELECTRICAL SERVICES (ENDING 10/31/16)4,052.34 4,052.34 2047175 11/30/16 17675 BYROM- DAVEY INC Ref002470513 11/29/16 UB Refund Cst #0000230821 1,749.38 1,749.38 2047294 12/21/16 00557 CALIFORNIA SPECIAL DISTRICTS 6062017 12/08/16 MEMBERSHIP RENEWAL 6,485.00 6,485.00 2047257 12/14/16 00192 CALIFORNIA WATER ENVIRONMENT 120816 11/01/16 CERTIFICATE RENEWAL 88.00 88.00 2047210 12/07/16 02758 CARMEL BUSINESS SYSTEMS INC 8096 11/15/16 REPROGRAPHICS SERVICES 748.25 8095 11/15/16 SCANNING SERVICES (11/14/16)61.02 2047295 12/21/16 02758 CARMEL BUSINESS SYSTEMS INC 8103 12/02/16 DESTRUCTION SERVICES (11/30/16)38.50 38.50 2047211 12/07/16 17022 CASTLE ACCESS INC 0223092835 12/02/16 COLOCATION SERVICES 2,121.57 2,121.57 2047296 12/21/16 17466 CHARLES KING COMPANY 211302016 11/30/16 14-INCH FORCE MAIN (ENDING 11/30/16)188,122.16 188,122.16 2047212 12/07/16 02026 CHULA VISTA ELEM SCHOOL DIST AR046474 11/21/16 GARDEN TOURS (9/14/16)192.02 AR046473 11/21/16 GARDEN TOURS (9/13/16)181.09 AR046476 11/21/16 GARDEN TOURS (10/6/16)177.80 AR046471 11/21/16 GARDEN TOURS (8/23/16)169.31 AR046472 11/21/16 GARDEN TOURS (8/25/16)169.31 2047258 12/14/16 15256 CIGNA GROUP INSURANCE / LINA 9267i121016 12/10/16 AD&D & SUPP LIFE INS (DEC 2016)4,216.98 4,216.98 2047259 12/14/16 08895 CITY OF LA MESA 18919 12/13/16 FINGERPRINTING SERVICES 80.00 80.00 2047297 12/21/16 00234 CITY TREASURER 1000179565 10/05/16 LABORATORY ANALYSIS (SEPT 2016)964.00 964.00 2047298 12/21/16 04119 CLARKSON LAB & SUPPLY INC 87801 11/30/16 BACTERIOLOGICAL TESTING (11/17/16-11/19/16)762.00 87803 11/30/16 BACTERIOLOGICAL TESTING (11/30/16)682.00 87800 11/30/16 BACTERIOLOGICAL TESTING (11/17/16)482.00 87798 11/30/16 BACTERIOLOGICAL TESTING (11/8/16)454.00 87350 11/30/16 BACTERIOLOGICAL TESTING (11/2/16)206.00 87797 11/30/16 BACTERIOLOGICAL TESTING (11/07/16)188.00 87799 11/30/16 BACTERIOLOGICAL TESTING (11/15/16)178.00 Page 2 of 9 Check #Check Total CHECK REGISTER Otay Water District Date Range: 11/24/2016 - 12/21/2016 Date Vendor Vendor Name Invoice Inv. Date Description Amount 3,130.00 1,573.00 19,012.00 87802 11/30/16 BACTERIOLOGICAL TESTING (11/21/16)178.00 2047260 12/14/16 15616 COGENT COMMUNICATIONS INC 0002120116 12/01/16 INTERNET CIRCUITS (DEC 2016)1,333.00 1,333.00 2047176 11/30/16 15616 COGENT COMMUNICATIONS INC 0002110116 11/01/16 INTERNET CIRCUITS (NOV 2016)1,333.00 1,333.00 2047261 12/14/16 03307 CONSTRUCTION MANAGEMENT 7008 10/26/16 CMAA DUES 1,200.00 1,200.00 2047213 12/07/16 03706 CONSUMERS PIPE & SUPPLY CO S1334665002 10/31/16 6" GATE VALVE/CHECK VALVES 5,493.27 5,493.27 2047299 12/21/16 17705 CONTINENTAL CENTRAL CREDIT INC A110113016 11/30/16 COLLECTION SERVICES 726.40 726.40 2047214 12/07/16 02612 COUNCIL OF WATER UTILITIES 11152016 12/01/16 BUSINESS MEETING 25.00 25.00 2047215 12/07/16 00099 COUNTY OF SAN DIEGO DPWAROTAYMWD101611/09/16 EXCAVATION PERMITS (OCT 2016)2,889.90 2,889.90 2047216 12/07/16 00134 COUNTY OF SAN DIEGO 120116 12/01/16 MND FOR THE 870-2 PUMP STATION 2,260.25 2,260.25 2047300 12/21/16 00184 COUNTY OF SAN DIEGO 5349101716 10/17/16 UPFP PERMIT RENEWAL (12/31/16-12/31/17)405.00 5348101716 10/17/16 UPFP PERMIT RENEWAL (12/31/16-12/31/17)292.00 5351101716 10/17/16 UPFP PERMIT RENEWAL (12/31/16-12/31/17)292.00 5345101716 10/17/16 UPFP PERMIT RENEWAL (12/31/16-12/31/17)292.00 5346101716 10/17/16 UPFP PERMIT RENEWAL (12/31/16-12/31/17)292.00 2047217 12/07/16 02122 COUNTY OF SAN DIEGO 2016092709281 09/27/16 PERMIT FEES # 09281 (DEC 2016-DEC 2017)8,370.00 2016092709276 09/27/16 PERMIT FEES # 09276 (DEC 2016-DEC 2017)3,272.00 2016092701989 09/27/16 PERMIT FEES # 01989 (DEC 2016-DEC 2017)1,314.00 2016092703231 09/27/16 PERMIT FEES # 03231 (DEC 2016-DEC 2017)565.00 2016092700233 09/27/16 PERMIT FEES # 00233 (DEC 2016-DEC 2017)561.00 2016092709503 09/27/16 PERMIT FEES # 09503 (DEC 2016-DEC 2017)514.00 2016092709283 09/27/16 PERMIT FEES # 09283 (DEC 2016-DEC 2017)514.00 2016092709291 09/27/16 PERMIT FEES # 09291 (DEC 2016-DEC 2017)467.00 2016092709289 09/27/16 PERMIT FEES # 09289 (DEC 2016-DEC 2017)356.00 2016092710565 09/27/16 PERMIT FEES # 10565 (DEC 2016-DEC 2017)309.00 2016092709277 09/27/16 PERMIT FEES # 09277 (DEC 2016-DEC 2017)309.00 2016092709279 09/27/16 PERMIT FEES # 09279 (DEC 2016-DEC 2017)309.00 2016092709285 09/27/16 PERMIT FEES # 09285 (DEC 2016-DEC 2017)309.00 2016092709286 09/27/16 PERMIT FEES # 09286 (DEC 2016-DEC 2017)309.00 2016092709287 09/27/16 PERMIT FEES # 09287 (DEC 2016-DEC 2017)309.00 2016092709288 09/27/16 PERMIT FEES # 09288 (DEC 2016-DEC 2017)309.00 2016092709290 09/27/16 PERMIT FEES # 1995 (DEC 2016-DEC 2017)309.00 2016092704983 09/27/16 PERMIT FEES # 04983 (DEC 2016-DEC 2017)309.00 2016092709280 09/27/16 PERMIT FEES # 09280 (DEC 2016-DEC 2017)298.00 Page 3 of 9 Check #Check Total CHECK REGISTER Otay Water District Date Range: 11/24/2016 - 12/21/2016 Date Vendor Vendor Name Invoice Inv. Date Description Amount 803.64 13,944.96 2047218 12/07/16 02756 COX COMMUNICATIONS INC 6702112516 11/25/16 TELECOMM SVCS / METRO-E (11/24/16-12/23/16)5,293.23 5,293.23 2047177 11/30/16 02756 COX COMMUNICATIONS INC 6701110816 11/08/16 TELECOMM SVCS / METRO-E (11/8/16-12/7/16)134.23 134.23 2047262 12/14/16 02756 COX COMMUNICATIONS INC 2401112816 11/28/16 TELECOMM SVCS / METRO-E (11/28/16-12/27/16)134.23 0301112816 11/28/16 TELECOMM SVCS / METRO-E (11/28/16-12/27/16)134.23 6101112916 11/29/16 TELECOMM SVCS / METRO-E (11/29/16-12/28/16)134.23 7601120416 12/04/16 TELECOMM SVCS / METRO-E (12/3/16-1/2/16)133.65 6701120816 12/08/16 TELECOMM SERVICES / METRO-E (12/8/16-1/7/17)133.65 8801120416 12/04/16 TELECOMM SERVICES / METRO-E (12/4/16-1/3/17)133.65 2047219 12/07/16 00693 CSDA, SAN DIEGO CHAPTER 111720164 12/01/16 BUSINESS MEETING 40.00 40.00 2047301 12/21/16 11797 D & H WATER SYSTEMS INC I20161044 11/29/16 ENCORE & ACUTEC 4,450.72 4,450.72 2047302 12/21/16 14008 DELL AWARDS 202925 12/01/16 OFFICE SUPPLIES 151.74 151.74 2047178 11/30/16 17665 EASTLAKE LLC Ref002470503 11/29/16 UB Refund Cst #0000075410 1,364.82 1,364.82 2047179 11/30/16 17612 ECS IMAGING INC 11871 10/31/16 LASERFICHE IMPLEMENTATION 120,875.00 120,875.00 2047220 12/07/16 17395 EDUCATION & TRAINING SVCS LLC 120116 12/01/16 TRAINING SEMINAR 549.00 549.00 2047180 11/30/16 17673 ELIZABETH GONZALEZ Ref002470511 11/29/16 UB Refund Cst #0000226163 23.35 23.35 2047303 12/21/16 13825 ENRIQUEZ, LUIS 121316 12/15/16 SAFETY BOOTS 150.00 150.00 2047304 12/21/16 03227 ENVIROMATRIX ANALYTICAL INC 6120513 12/05/16 LAB ANALYSIS (11/21/16)620.00 620.00 2047181 11/30/16 14320 EUROFINS EATON ANALYTICAL INC L0292677 11/22/16 OUTSIDE LAB SERVICES (11/1/16-11/7/16)90.00 90.00 2047263 12/14/16 14320 EUROFINS EATON ANALYTICAL INC L0294610 12/07/16 OUTSIDE LAB SERVICES (11/14/16)800.00 800.00 2047221 12/07/16 03546 FERGUSON WATERWORKS # 1083 05725011 11/10/16 FLANGES 3,697.92 3,697.92 2047305 12/21/16 03546 FERGUSON WATERWORKS # 1083 0576241 11/22/16 INVENTORY 11,757.85 0577225 12/01/16 INVENTORY 1,463.51 05762411 11/29/16 INVENTORY 723.60 2047306 12/21/16 12187 FIRST AMERICAN DATA TREE LLC 9003401116 11/30/16 ONLINE DOCUMENTS (MONTHLY)99.00 99.00 2047182 11/30/16 11962 FLEETWASH INC x897387 11/04/16 VEHICLE WASHING 110.16 110.16 2047264 12/14/16 17708 FRED KRAFFT Ref002472571 12/14/16 UB Refund Cst #0000040651 141.09 141.09 2047307 12/21/16 13563 FRIENDS OF THE WATER 348 11/30/16 GARDEN TOURS (NOV 2016)5,320.00 5,320.00 2047265 12/14/16 17713 GARY REEN Ref002472576 12/14/16 UB Refund Cst #0000223936 13.74 13.74 2047183 11/30/16 03537 GHA TECHNOLOGIES INC 9896949 11/04/16 CRADLEPOINT ROUTERS 5,040.04Page 4 of 9 Check #Check Total CHECK REGISTER Otay Water District Date Range: 11/24/2016 - 12/21/2016 Date Vendor Vendor Name Invoice Inv. Date Description Amount 5,964.44 6,380.63 26,864.75 2047183 11/30/16 03537 GHA TECHNOLOGIES INC 9896949 11/04/16 CRADLEPOINT ROUTERS 5,040.04 9897434 11/04/16 CRADLEPOINT ROUTERS 924.40 2047308 12/21/16 17524 GILLINGHAM WATER PLANNING 160401 12/12/16 WATER SUPPLY RELIABILITY STUDY 5,000.00 5,000.00 2047309 12/21/16 00174 HACH COMPANY 10202444 11/21/16 HACH ANALYZER 3,639.84 10221044 12/05/16 HACH APA6000 1,392.79 10221042 12/05/16 HACH APA6000 1,348.00 2047266 12/14/16 10973 HDR ENGINEERING INC 1200025488 12/09/16 CAPACITY FEE STUDY (10/30/16-11/26/16)785.00 785.00 2047310 12/21/16 02008 HELIX ENVIRONMNTL PLANNING INC 25 11/23/16 ENVIRONMENTAL SERVICES (11/1/16-11/20/16)7,015.08 7,015.08 2047222 12/07/16 02008 HELIX ENVIRONMNTL PLANNING INC 24 11/10/16 ENVIRONMENTAL SERVICES (10/1/16-10/31/16)7,899.94 7,899.94 2047223 12/07/16 13349 HUNSAKER & ASSOCIATES 2016100006 11/11/16 LAND SURVEYING (10/1/16-10/26/16)6,062.00 6,062.00 2047224 12/07/16 03743 HYDROTEX 301428 11/18/16 OIL & GREASE 2,346.41 2,346.41 2047311 12/21/16 15622 ICF JONES & STOKES INC 0118845 11/29/16 ENVIRONMENTAL SERVICES (10/1/16-10/28/16)20,388.75 0118891 12/01/16 ENVIRONMENTAL SERVICES (10/1/16-10/28/16)5,300.00 0118843 11/29/16 ENVIRONMENTAL SERVICES (10/1/16-10/28/16)1,176.00 2047184 11/30/16 17669 IRMA ZAMUDIO Ref002470507 11/29/16 UB Refund Cst #0000187924 66.48 66.48 2047185 11/30/16 17664 JASON WOOD 7648112816 11/28/16 CUSTOMER REFUND 1,159.81 1,159.81 2047312 12/21/16 05217 JONES, DANIEL 121216 12/15/16 SAFETY BOOTS 146.45 146.45 2047267 12/14/16 17707 KEN PINEDA Ref002472570 12/14/16 UB Refund Cst #0000020303 66.05 66.05 2047225 12/07/16 03643 KOCH-ARMSTRONG 92477 11/11/16 CURB & GUTTER REPLACEMENT 368.00 368.00 2047268 12/14/16 14808 KOEPPEN, KEVIN 121316 12/13/16 AICPA CPE MEMBERSHIP 249.00 249.00 2047269 12/14/16 17712 LANDCO INVESTMENTS INC Ref002472575 12/14/16 UB Refund Cst #0000223562 35.75 35.75 2047270 12/14/16 05632 LARSON, BRAD 12082016BL 12/08/16 TUITION REIMBURSEMENT 140.00 140.00 2047186 11/30/16 17667 MARTHA BOBADILLA Ref002470505 11/29/16 UB Refund Cst #0000175690 15.17 15.17 2047313 12/21/16 05329 MASTER METER INC 160553 12/01/16 3/4" 3G REGISTERS 6,620.95 6,620.95 2047314 12/21/16 02882 MAYER REPROGRAPHICS INC 0014503IN 12/05/16 CONFORMED SPECS FOR THE RWCWRF 918.77 918.77 2047271 12/14/16 11876 MICHAEL D KEAGY REAL ESTATE 111816 11/18/16 APPRAISAL SERVICES (ENDING 11/18/16)9,500.00 9,500.00 2047226 12/07/16 16613 MISSION RESOURCE CONSERVATION 371 12/01/16 HOME WATER USE EVAL (NOV 2016)93.75 93.75 2047187 11/30/16 16255 NATIONWIDE RETIREMENT Ben2470517 12/01/16 BI-WEEKLY DEFERRED COMP PLAN 10,028.12 10,028.12 Page 5 of 9 Check #Check Total CHECK REGISTER Otay Water District Date Range: 11/24/2016 - 12/21/2016 Date Vendor Vendor Name Invoice Inv. Date Description Amount 1,856.06 10,825.00 2047272 12/14/16 16255 NATIONWIDE RETIREMENT Ben2472545 12/15/16 BI-WEEKLY DEFERRED COMP PLAN 9,728.12 9,728.12 2047273 12/14/16 16505 NIGHTCLUBPOOL LLC 114 12/07/16 WEB CONSULTING (12/2/16)220.00 220.00 2047188 11/30/16 16505 NIGHTCLUBPOOL LLC 113 11/23/16 WEB CONSULTING 990.00 990.00 2047189 11/30/16 17670 NORMA SHANKS Ref002470508 11/29/16 UB Refund Cst #0000188202 5.80 5.80 2047227 12/07/16 17677 OTAY LOGISTICS INDUSTRIAL LLC 0628113016a 11/30/16 W/O REFUND D0628-010292 1,313.05 0628113016 11/30/16 W/O REFUND D0628-010317 543.01 2047315 12/21/16 17527 OTERO, TENILLE 090116121416 12/14/16 EXPENSE/MILEAGE REIMB (9/1/16-12/14/16)258.20 258.20 2047316 12/21/16 16669 PARKSON CORPORATION AR151017307 11/30/16 SPARE HIOX PANELS 29,254.10 29,254.10 2047228 12/07/16 17680 PERRY, BRANDON 120316 12/05/16 SAFETY BOOTS 150.00 150.00 2047229 12/07/16 00137 PETTY CASH CUSTODIAN 120516 12/05/16 PETTY CASH REIMBURSEMENT 914.08 914.08 2047190 11/30/16 17668 PHILIP ACIERTO Ref002470506 11/29/16 UB Refund Cst #0000187432 40.28 40.28 2047317 12/21/16 15081 PINOMAKI DESIGN 5448 12/01/16 OUTSIDE SERVICES 42.50 42.50 2047274 12/14/16 15081 PINOMAKI DESIGN 5429 11/16/16 OUTSIDE SERVICES 255.00 255.00 2047191 11/30/16 17674 PINTAR INVERSTMENT COMPANY Ref002470512 11/29/16 UB Refund Cst #0000226448 285.26 285.26 2047230 12/07/16 06419 PLANT SOUP INC 1094 09/26/16 PROFESSIONAL WRITING SERVICES 1,076.25 1,076.25 2047275 12/14/16 07161 POULIN, WILLIAM 120516120816 12/09/16 TRAVEL EXPENSE REIMB (12/5/16-12/8/16)1,121.89 1,121.89 2047318 12/21/16 07860 PROTECTIVE LIFE INSURANCE CO 102788121216 12/12/16 LIFE INSURANCE 6,987.50 6,987.50 2047319 12/21/16 00078 PUBLIC EMPLOYEES RET SYSTEM Ben2472547 12/15/16 BI-WEEKLY PERS CONTRIBUTION 195,166.69 195,166.69 2047231 12/07/16 00078 PUBLIC EMPLOYEES RET SYSTEM Ben2470519 12/01/16 BI-WEEKLY PERS CONTRIBUTION 195,743.49 195,743.49 2047192 11/30/16 17672 QUINTON MOODY Ref002470510 11/29/16 UB Refund Cst #0000223628 13.42 13.42 2047193 11/30/16 17676 RENEE REZA 6416113016 11/30/16 CUSTOMER REFUND 5,687.55 5,687.55 2047232 12/07/16 08972 RICK ENGINEERING COMPANY 51987 11/16/16 DESIGN SERVICES (10/1/16-10/28/16)4,347.50 174924 11/15/16 TRAFFIC ENGINEERING (10/1/16-10/28/16)4,047.50 51823 11/16/16 DESIGN SERVICES (10/1/16-10/28/16)1,830.00 0051637 11/08/16 CAMPO ROAD SUPPORT (10/1/16-10/28/16)600.00 2047320 12/21/16 08972 RICK ENGINEERING COMPANY 0052173 11/30/16 DESIGN SERVICES (8/27/16-9/30/16)7,165.00 7,165.00 2047321 12/21/16 00521 RICK POST WELD & WET TAPPING 11322 11/11/16 WELDING LOW HEAD PS 1,920.00 Page 6 of 9 Check #Check Total CHECK REGISTER Otay Water District Date Range: 11/24/2016 - 12/21/2016 Date Vendor Vendor Name Invoice Inv. Date Description Amount 2,580.00 100,335.47 38,462.77 11342 11/30/16 WELDING 660.00 2047276 12/14/16 00521 RICK POST WELD & WET TAPPING 11314 11/04/16 WELDING AT LOW HEAD PS (10/19/16)4,526.40 4,526.40 2047194 11/30/16 12228 ROCKWELL ENGINEERING &15746a 07/05/16 CP #17 REPL PORTABLE PUMPS 26,092.80 26,092.80 2047233 12/07/16 01700 RUBALCAVA, GILBERT 112616 12/01/16 SAFETY BOOTS 150.00 150.00 2047277 12/14/16 17711 RUBY MILLER Ref002472574 12/14/16 UB Refund Cst #0000214054 60.03 60.03 2047278 12/14/16 02586 SAN DIEGO COUNTY ASSESSOR 201600813 12/05/16 ASSESSOR DATA (11/7/16 & 11/21/16)250.00 250.00 2047322 12/21/16 00003 SAN DIEGO COUNTY WATER AUTH 0000001483 11/30/16 MWD SCWS 600.00 600.00 2047234 12/07/16 00121 SAN DIEGO GAS & ELECTRIC 112716 11/27/16 UTILITY EXPENSES (MONTHLY)73,100.70 112316 11/23/16 UTILITY EXPENSES (MONTHLY)25,689.03 113016 11/30/16 UTILITY EXPENSES (MONTHLY)1,545.74 2047195 11/30/16 00121 SAN DIEGO GAS & ELECTRIC 111716 11/17/16 UTILITY EXPENSES (MONTHLY)37,744.39 112116 11/21/16 UTILITY EXPENSES (MONTHLY)718.38 2047279 12/14/16 00121 SAN DIEGO GAS & ELECTRIC 120416 12/04/16 UTILITY EXPENSES (MONTHLY)72,827.94 72,827.94 2047323 12/21/16 00121 SAN DIEGO GAS & ELECTRIC 120116 12/01/16 UTILITY EXPENSES (MONTHLY)2,183.37 2,183.37 2047235 12/07/16 17678 SANYO NORTH AMERICAN CORP 0924113016 11/30/16 W/O REFUND D0924-090193 1,130.17 1,130.17 2047236 12/07/16 03955 SHEA HOMES LP 0307113016 11/30/16 W/O REFUND D0307-000001 1,214.88 1,214.88 2047196 11/30/16 17671 SHERRY MALLARI Ref002470509 11/29/16 UB Refund Cst #0000223278 45.32 45.32 2047237 12/07/16 17643 SOFTWAREONE INC USPSI536728 11/21/16 MS SOFTWARE MAINTENANCE SERVICE 61,715.75 61,715.75 2047238 12/07/16 17454 SOUTH GATE ENGINEERING LLC 011038 11/11/16 SURGE TANK 23,684.24 23,684.24 2047239 12/07/16 17567 SOUTHLAND PIPE CORP 85189 11/15/16 6-INCH PIPE 1,390.68 1,390.68 2047240 12/07/16 14257 SOUTHWEST VALVE & EQUIPMENT 4848 11/09/16 SURGE TANK VALVE 5,871.35 5,871.35 2047197 11/30/16 03516 SPECIAL DISTRICT RISK 0001112116 11/21/16 PROPERTY DEDUCTIBLE 5,000.00 5,000.00 2047280 12/14/16 01460 STATE WATER RESOURCES 4188121216 12/12/16 CERTIFICATION RENEWAL 80.00 80.00 2047324 12/21/16 01460 STATE WATER RESOURCES WD0122956 12/01/16 PERMIT FEE INDEX 287590 (7/1/16 - 6/30/17)2,088.00 2,088.00 2047281 12/14/16 05755 STATE WATER RESOURCES 18837120816 12/08/16 CERTIFICATION RENEWAL 60.00 60.00 2047241 12/07/16 05755 STATE WATER RESOURCES 8567120116 12/01/16 CERTIFICATION RENEWAL 60.00 60.00 2047242 12/07/16 16610 SVPR COMMUNICATIONS 1130 10/31/16 CONSULTANT SERVICES 2,900.00 2,900.00 2047325 12/21/16 16610 SVPR COMMUNICATIONS 1135 11/30/16 CONSULTANT SERVICES (NOV 2016)2,900.00 2,900.00Page 7 of 9 Check #Check Total CHECK REGISTER Otay Water District Date Range: 11/24/2016 - 12/21/2016 Date Vendor Vendor Name Invoice Inv. Date Description Amount 90.80 112.20 498.12 140,336.20 2047325 12/21/16 16610 SVPR COMMUNICATIONS 1135 11/30/16 CONSULTANT SERVICES (NOV 2016)2,900.00 2,900.00 2047282 12/14/16 15926 TEXAS CHILD SUPPORT UNIT Ben2472555 12/15/16 BI-WEEKLY PAYROLL DEDUCTION 184.61 184.61 2047198 11/30/16 15926 TEXAS CHILD SUPPORT UNIT Ben2470527 12/01/16 BI-WEEKLY PAYROLL DEDUCTION 184.61 184.61 2047283 12/14/16 02795 THE HARTFORD INSURANCE CO 1144312122016 12/13/16 INSURANCE PREMIUM 750.00 750.00 2047243 12/07/16 14177 THOMPSON, MITCHELL 110116113016a 11/30/16 MILEAGE REIMBURSEMENT (NOV 2016)56.16 110116113016 12/06/16 EXPENSE REIMBURSEMENT (NOV 2016)34.64 2047199 11/30/16 14177 THOMPSON, MITCHELL 090116093016 11/21/16 MILEAGE REIMBURSEMENT (SEPT 2016)97.20 090116093016a 11/30/16 EXPENSE REIMBURSEMENT (SEPT 2016)15.00 2047284 12/14/16 08159 TORRES, LEONEL LT121216 12/12/16 TRAVEL REIMBURSEMENT 922.05 922.05 2047244 12/07/16 17000 TRANSTAR PIPELINE INC 810312016 11/09/16 RSD SEWER REHAB PHASE 1 (ENDING 10/31/16)142,773.30 142,773.30 2047326 12/21/16 00427 UNDERGROUND SERVICE ALERT OF 1120160492 12/01/16 UNDERGROUND ALERTS (MONTHLY)480.00 480.00 2047327 12/21/16 15675 UNITED SITE SERVICES INC 1144735682 11/29/16 PORTABLE TOILET RENTALS (11/23/16-12/20/16)79.98 79.98 2047200 11/30/16 15675 UNITED SITE SERVICES INC 1144653520 11/08/16 PORTABLE TOILET RENTALS (11/3/16-11/30/16)98.17 1144684078 11/15/16 PORTABLE TOILET RENTALS (11/11/16-12/8/16)80.03 1144653624 11/08/16 PORTABLE TOILET RENTALS (11/4/16-12/1/16)79.98 1144684073 11/15/16 PORTABLE TOILET RENTALS (11/12/16-12/9/16)79.98 1144684076 11/15/16 PORTABLE TOILET RENTALS (11/11/16-12/8/16)79.98 1144684075 11/15/16 PORTABLE TOILET RENTALS (11/11/16-12/8/16)79.98 11/22/16 CAL CARD EXPENSES (MONTHLY) 2047285 12/14/16 00350 UNITED STATES POSTAL SERVICE 3951120816 12/08/16 140,336.20 PREPAID POSTAGE MACHINE 6,000.00 6,000.00 2047246 12/07/16 07674 US BANK CC20161122296 2047247 12/07/16 06829 US SECURITY ASSOCIATES INC 1510516 11/30/16 PATROLLING SERVICES (NOV 2016)110.00 110.00 2047201 11/30/16 01095 VANTAGEPOINT TRANSFER AGENTS Ben2470523 12/01/16 BI-WEEKLY DEFERRED COMP PLAN 14,565.52 14,565.52 2047286 12/14/16 01095 VANTAGEPOINT TRANSFER AGENTS Ben2472551 12/15/16 BI-WEEKLY DEFERRED COMP PLAN 14,541.58 14,541.58 2047287 12/14/16 06414 VANTAGEPOINT TRANSFER AGENTS Ben2472553 12/15/16 BI-WEEKLY 401A PLAN 1,215.77 1,215.77 2047202 11/30/16 06414 VANTAGEPOINT TRANSFER AGENTS Ben2470525 12/01/16 BI-WEEKLY 401A PLAN 1,340.77 1,340.77 2047288 12/14/16 17710 W.E. O'NEIL CONSTRUCTION CO Ref002472573 12/14/16 UB Refund Cst #0000206628 1,624.66 1,624.66 2047328 12/21/16 15807 WATCHLIGHT CORPORATION, THE 500678 12/15/16 ALARM MONITORING (JAN 2017)1,568.92 1,568.92 2047248 12/07/16 15807 WATCHLIGHT CORPORATION, THE 493486 10/31/16 SECURITY UPGRADE (10/12/16-10/26/16)24,971.22 492966 10/20/16 SECURITY UPGRADE (9/23/16-10/13/16)13,387.95 Page 8 of 9 Check #Check Total CHECK REGISTER Otay Water District Date Range: 11/24/2016 - 12/21/2016 Date Vendor Vendor Name Invoice Inv. Date Description Amount 53,802.94 228.30 2,500.00 492483 10/11/16 SECURITY AND ACCESS UPGRADE 10,062.00 492972 10/20/16 SECURITY & ACCESS SVC (10/4/16-10/6/16)2,040.00 496616 11/15/16 ALARM MONITORING (DEC 2016)1,568.92 492968 10/20/16 UTILITY MAINTENANCE CONDUIT (9/30/16)646.86 492969 10/20/16 SECURITY & ACCESS SERVICE CALL (10/3/16)617.60 492967 10/20/16 SECURITY & ACCESS SERVICE CALL (9/30/16)304.39 492970 10/20/16 SECURITY & ACCESS SERVICE CALL (9/27/16)204.00 2047289 12/14/16 15807 WATCHLIGHT CORPORATION, THE 493321 10/28/16 SECURITY & ACCESS SERVICE CALL (10/26/16)160.30 493320 10/28/16 SECURITY & ACCESS SERVICE CALL (10/26/16)68.00 2047329 12/21/16 15726 WATER SYSTEMS CONSULTING INC 2306 11/30/16 HYDRAULIC MODELING (ENDING 11/30/16)8,000.00 8,000.00 2047249 12/07/16 15181 WILLDAN FINANCIAL SERVICES 010-32678 11/16/16 ARBITRAGE REBATE SVCS 1,250.00 010-32679 11/16/16 ARBITRAGE REBATE SVCS 1,250.00 2047330 12/21/16 14857 YSI INCORPORATED 668694 Check Grand Total:1,908,996.97 12/02/16 NITRATE ELECTRODES 9,828.76 9,828.76 Amount Pd Total:1,908,996.97 Page 9 of 9