HomeMy WebLinkAbout07-03-13 Board Packet (Part 1) 1
OTAY WATER DISTRICT
BOARD OF DIRECTORS MEETING
DISTRICT BOARDROOM
2554 SWEETWATER SPRINGS BOULEVARD
SPRING VALLEY, CALIFORNIA
WEDNESDAY
July 3, 2013
3:30 P.M.
AGENDA
1. ROLL CALL
2. PLEDGE OF ALLEGIANCE
3. APPROVAL OF AGENDA
4. APPROVE THE MINUTES OF THE REGULAR MEETING OF JUNE 5, 2013
AND SPECIAL MEETING OF MAY 14, 2013
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
CONSENT CALENDAR
6. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST
IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A
PARTICULAR ITEM:
a) APPROVE CHANGE ORDER NO. 3 TO THE EXISTING CONTRACT
WITH BASILE CONSTRUCTION, INC. IN THE AMOUNT OF $19,289.50
FOR THE 12-INCH POTABLE WATER PIPELINE IN ORANGE AVENUE,
I-805 CROSSING PROJECT
b) APPROVE UTILITY AGREEMENT NO. 33592 WITH CALTRANS FOR
SR-11, SEQUENCE I UTILITY RELOCATIONS PROJECT
c) APPROVE THE WATER SUPPLY ASSESSMENT AND VERIFICATION
REPORT DATED MAY 2013 FOR THE OTAY RANCH PLANNING AREA
12 FREEWAY COMMERCIAL PROJECT
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d) APPROVE LEASE AMENDMENTS WITH SPRINT PCS ASSETS, LLC, A
DELAWARE LIMITED LIABILITY COMPANY (SPRINT PCS) FOR MODI-
FICATIONS TO SIX (6) EXISTING COMMUNICATIONS FACILITIES LO-
CATED THROUGHOUT THE DISTRICT
e) ADOPT RESOLUTION NO. 4211 TO CONTINUE WATER AND SEWER
AVAILABILITY CHARGES FOR DISTRICT CUSTOMERS FOR FISCAL
YEAR 2013-2014 TO BE COLLECTED THROUGH PROPERTY TAX
BILLS
f) ADOPT RESOLUTION NO. 4212 TO ESTABLLISH THE TAX RATE FOR
IMPROVEMENT DISTRICT NO. 27 AT $0.005 FOR FISCAL YEAR 2013-
2014
g) ADOPT RESOLUTION NO. 4215 FOR THE ELECTION OF FOUR (4)
CANDIDATES FOR THE SPECIAL DISTRICT RISK MANAGEMENT AU-
THORITY’S (SDRMA) BOARD OF DIRECTORS
h) APPROVE INFORMATION TECHNOLOGY CONTRACTS FOR PHONE
SERVICES, MANAGED SERVICES FOR THE DATA CENTER AND GPS
TRACKING
ACTION ITEMS
7. ENGINEERING AND WATER OPERATIONS
a) APPROVE THE ADOPTION OF A MITIGATED NEGATIVE DECLARA-
TION FOR THE REGULATORY SITE ACCESS ROAD IMPROVEMENTS
PROJECT (COBURN-BOYD)
b) APPROVE THE WATER SUPPLY ASSESSMENT AND VERIFICATION
REPORT DATED MAY 2013 FOR THE CITY OF SAN DIEGO OTAY ME-
SA COMMUNITY PLAN UPDATE (COBURN-BOYD)
c) CERTIFY THE FINAL SUPPLEMENTAL PROGRAM ENVIRONMENTAL
IMPACT REPORT (SPEIR) FOR THE 2013 WASTEWATER MANAGE-
MENT PLAN (WWMP) AND FIND THAT THE POTENTIALLY SIGNIFI-
CANT EFFECTS OF THE DISTRICT’S WWMP WILL BE AVOIDED
THROUGH THE ADOPTION OF FEASIBLE MITIGATION MEASURES
SHOWN IN THE SPEIR; AND APPROVE THE 2013 WWMP AS A FINAL
PLAN AND DOCUMENT (COBURN-BOYD)
8. ADMINISTRATIVE SERVICE, FINANCE AND INFORMATION TECHNOLOGY
a) RECEIVE THE DISTRICT’S INVESTMENT POLICY (POLICY NO. 27)
FOR REVIEW, AND ADOPT RESOLUTION NO. 4213 AMENDING THE
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POLICY AND RE-DELEGATING AUTHORITY FOR ALL INVESTMENT
RELATED ACTIVITIES TO THE CHIEF FINANCIAL OFFICER IN AC-
CORDANCE WITH GOVERNMENT CODE SECTION 53607 (KOEPPEN)
9. BOARD
a) CONSIDER CASTING A VOTE TO ELECT A MEMBER TO THE CALI-
FORNIA SPECIAL DISTRICTS ASSOCIATION’S BOARD OF DIREC-
TORS (WATTON)
b) DISCUSSION OF 2013 BOARD MEETING CALENDAR
REPORTS
10. GENERAL MANAGER’S REPORT
a) SAN DIEGO COUNTY WATER AUTHORITY UPDATE
11. DIRECTORS' REPORTS/REQUESTS
12. PRESIDENT’S REPORT/REQUESTS
RECESS TO CLOSED SESSION
13. CLOSED SESSION
a) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION
[GOVERNMENT CODE §54956.9]
1 CASE
RETURN TO OPEN SESSION
14. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD
MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION
15. ADJOURNMENT
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All items appearing on this agenda, whether or not expressly listed for action, may be
deliberated and may be subject to action by the Board.
The Agenda, and any attachments containing written information, are available at the
District’s website at www.otaywater.gov. Written changes to any items to be considered
at the open meeting, or to any attachments, will be posted on the District’s website.
Copies of the Agenda and all attachments are also available through the District
Secretary by contacting her at (619) 670-2280.
If you have any disability which would require accommodation in order to enable you to
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 June 28, 2013, 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 June 28, 2013.
/s/ Susan Cruz, District Secretary
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MINUTES OF THE
BOARD OF DIRECTORS MEETING OF THE
OTAY WATER DISTRICT
June 5, 2013
1. The meeting was called to order by President Lopez at 3:34 p.m.
2. ROLL CALL
Directors Present: Croucher, Gonzalez, Lopez, Robak, and Thompson
Directors Absent: None
Staff Present: General Manager Mark Watton, Attorney Richard Romero,
Chief Financial Officer Joe Beachem, Chief of Engineering
Rod Posada, Chief of Information Technology Geoff
Stevens, Chief of Administration Rom Sarno, Chief of
Water Operations Pedro Porras and District Secretary
Susan Cruz and others per attached list.
3. PLEDGE OF ALLEGIANCE
4. APPROVAL OF AGENDA
A motion was made by Director Croucher, seconded by Director Thompson and
carried with the following vote:
Ayes: Directors Croucher, Gonzalez, Lopez, Robak, and Thompson
Noes: None
Abstain: None
Absent: None
to approve the agenda.
5. PRESENTATION OF TYLER TECHNOLOGIES AWARD
Customer Service Manager Alice Mendez-Schomer and Lead Business Systems
Analyst Shamala Saripalli presented the award the District received from Tyler
Technologies in April 2013. The Tyler Technologies Public Excellence Award
recognizes the District for its successful integration of its financial applications.
This is very unique in the industry and the District is very pleased to be
recognized for this effort. Chief of Information Technology Geoff Stevens
indicated that the District was selected from sixty (60) firms who had submitted
an application from across the Country.
6. APPROVE THE MINUTES OF THE REGULAR MEETING OF MAY 1, 2013
A motion was made by Director Thompson, seconded by Director Gonzalez and
carried with the following vote:
AGENDA ITEM 4
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Ayes: Directors Croucher, Gonzalez, Lopez, Robak, and Thompson
Noes: None
Abstain: None
Absent: None
to approve the minutes of the regular meeting of May 1, 2013.
7. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC
TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE
BOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA
No one wished to be heard.
CONSENT CALENDAR
8. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST
IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A
PARTICULAR ITEM:
Director Robak pulled Items 7g, APPROVE A TWO-YEAR AGREEMENT WITH
BROWNSTEIN HYATT FARBER & SCHRECK IN AN AMOUNT NOT-TO-
EXCEED $35,000 ANNUALLY ($70,000 TOTAL ENDING JUNE 30, 2015) FOR
STATE AND FEDERAL LEGISLATIVE ISSUES ADVOCACY, and 7i, APPROVE
A FIVE-YEAR AGREEMENT WITH INFOSEND TO PROVIDE BILL PRINT AND
ELECTRONIC BILL PRESENTMENT SERVICES IN AN AMOUNT NOT-TO-
EXCEED $1,310,000 ($262,000 ANNUALLY); AND WITH ELECTRONIC
PAYMENT EXCHANGE TO PROVIDE PAYMENT TRANSACTION
PROCESSING SERVICES IN AN AMOUNT NOT-TO-EXCEED $735,000
($147,000 ANNUALLY), for discussion.
Director Thompson pulled Items 7b, APPROVE THE ISSUANCE OF A
BLANKET PURCHASE ORDER TO KIRK PAVING IN AN AMOUNT NOT-TO-
EXCEED $175,000 FOR AS-NEEDED ASPHALT PAVING SERVICES FROM
JULY 1, 2013 THROUGH JUNE 30, 2014, and 7c, UPDATE ON THE
RECYCLED WATER RETROFIT PILOT PROGRAM AND APPROVE A WAIVER
OF COSTS AND EXPENSES RELATED TO THE AGREEMENT FOR
RECYCLED WATER RETROFIT BETWEEN THE DISTRICT AND THE
ARISTATA HOMEOWNERS ASSOCIATION, for discussion.
Upon a motion by Director Robak, seconded by Director Thompson and carried
with the following vote:
Ayes: Directors Croucher, Gonzalez, Lopez, Robak and Thompson
Noes: None
Abstain: None
Absent: None
to approve the following consent calendar items:
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a) APPROVE UTILITY AGREEMENTS NO. 33545, 33551, AND 33556
WITH CALTRANS FOR THE EAST PALOMAR UTILITY RELOCATIONS
d) APPROVE CHANGE ORDER NO. 3 TO THE EXISTING CONTRACT
WITH GARCIA JUAREZ CONSTRUCTION, INC. IN THE AMOUNT OF
$7,142 FOR THE CALAVO GARDENS SEWER REHABILITATION
PROJECT
e) APPROVE A FIVE-YEAR UNIFORM AGREEMENT [THREE-YEARS,
WITH TWO (2) ONE-YEAR OPTIONS] WITH MISSION LINEN SUPPLY,
INC. FOR UNIFORM, LAUNDRY, FLOOR MAT, AND TOWEL SERVICES
IN AN AMOUNT NOT-TO-EXCEED $165,000
f) DECLARE IDENTIFIED VEHICLES AND EQUIPMENT AS SURPLUS TO
THE DISTRICT’S NEEDS
h) APPROVE AN AGREEMENT WITH NEW CINGULAR WIRELESS PCS,
LLC, A DELAWARE LIMITED LIABILITY COMPANY FOR THE
INSTALLATION OF A COMMUNICATIONS FACILITY AT THE 1296-1, 2,
AND 3 RESERVOIRS SITE
President Lopez presented item 7b for discussion:
b) APPROVE THE ISSUANCE OF A BLANKET PURCHASE ORDER TO
KIRK PAVING IN AN AMOUNT NOT-TO-EXCEED $175,000 FOR AS-
NEEDED ASPHALT PAVING SERVICES FROM JULY 1, 2013
THROUGH JUNE 30, 2014
Director Thompson inquired how the weighting is determined in the scoring of the
bids. Utility Services Manager Jose Martinez referenced Attachment B to staffs’
report and indicated that the weighted scores are based on the frequency that
the District requires a particular type of service performed (ie., Asphalt Paving 0”
to 6”, Satin Seal, etc.). Based on how often the District utilizes a particular
service, a weighted value of 1 to 10 is assigned to the various services with 10
being the most often and 1 the least often.
Upon a motion by Director Thompson, seconded by Director Lopez and carried
with the following vote:
Ayes: Directors Croucher, Gonzalez, Lopez, Robak and Thompson
Noes: None
Abstain: None
Absent: None
to approve staffs’ recommendation.
c) UPDATE ON THE RECYCLED WATER RETROFIT PILOT PROGRAM
AND APPROVE A WAIVER OF COSTS AND EXPENSES RELATED TO
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THE AGREEMENT FOR RECYCLED WATER RETROFIT BETWEEN
THE DISTRICT AND THE ARISTATA HOMEOWNERS ASSOCIATION
Director Thompson inquired what occurred that made the District decide the
Recycled Water Retrofit Program was not cost effective and the reason the
District is waiving the costs associated with the program for Aristata
Homeowners Association. General Manager Watton indicated that the pilot
program was initiated to learn if converting multi-family dwelling units to utilize
recycled water for irrigation purposes would be worthwhile. During the pilot
program that the Homeowner’s Association’s (HOA) realized that the program
was going to take a lot more money, work and effort than anticipated versus the
water savings that the conversion would produce. He stated that in the middle of
the pilot program, the recession hit and the members of Aristata HOA’s board
changed. The HOA’s finances were strained because they were not receiving
their monthly homeowners’ fees due to vacant condo units. The HOA decided
that they could no longer be part of the program due to the cost, etc. The District
found through the pilot program that the cost and work to retrofit multi-family
dwelling units to use recycled water for irrigation outweighed the benefits. It was
indicated that due to the regulatory structure of the Health Department (annual
required certifications, the shutdown tests, etc.) the 15% rate differential
sometime saved the HOA a little money on water cost, but sometimes it did not.
He indicated that it was found that the incentive to retrofit is not to reduce water
cost, but was more to use our water resources wisely.
Director Thompson further inquired why it was more cost effective for the other
HOA’s in the pilot program versus the Aristata HOA. Engineering Manager Dan
Martin indicated that when the District asked a couple of the remaining three (3)
HOA’s if they would participate again in the program, they had indicated that they
were not sure that they would participate again. However, they indicated that,
though, it is not cost effective, they will take their project to completion.
Upon a motion by Director Thompson, seconded by Director Croucher and
carried with the following vote:
Ayes: Directors Croucher, Gonzalez, Lopez, Robak and Thompson
Noes: None
Abstain: None
Absent: None
to approve staffs’ recommendation.
g) APPROVE A TWO-YEAR AGREEMENT WITH BROWNSTEIN HYATT
FARBER & SCHRECK (BHFS) IN AN AMOUNT NOT-TO-EXCEED
$35,000 ANNUALLY ($70,000 TOTAL ENDING JUNE 30, 2015) FOR
STATE AND FEDERAL LEGISLATIVE ISSUES ADVOCACY
Director Robak indicated that the District has worked with BHF for many years
and that the District has been pleased with the services that they have provided.
He stated that in the past, the board was provided regular updates from the firm.
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He indicated that he understands that it gets busy, but he would like to see a
regular update from the firm as was done in the past. General Manager Watton
indicated that the firm has also provided services related to the Rosarito
Desalination Project, however, they have not done much related to the project as
it was suspended by the developer for some time. He indicated that the contract
presented is separate from the Rosarito Desalination Project and is for State
legislative representation only. He also indicated that staff would have the firm
provide the board regular updates as was done in the past.
Director Robak also noted that the BHFS works with CWA. He stated one of the
partners of BHFS is Mr. Scott Slater. He stated that Mr. Slater is the CEO of
Cadiz, Inc. and inquired if this was not a conflict. General Manager Watton
indicated that, at the present, it is not believed that there is a conflict. However,
CWA and Otay WD are alert to this fact and are monitoring the situation. He
indicated that the way the project is currently configured, they are selling water to
public agencies who have indicated interest. If it continues this way, there would
not be a conflict. If they decide to start providing subsidies or issues develop
with MET or some other competition for public money occurs, that may be of
interest to the Otay WD and a conflict could develop. He stated, however, as
long as it is a private project with voluntary buyers, then it is not seen as an
issue. General Manager Watton indicated that he has discussed this issue with
BHFS and at CWA and all are alert to this this issue.
Upon a motion by Director Robak, seconded by Director Gonzalez and carried
with the following vote:
Ayes: Directors Croucher, Gonzalez, Lopez, Robak and Thompson
Noes: None
Abstain: None
Absent: None
to approve staffs’ recommendation.
President Lopez inquired how many other agencies BHFS represents. General
Manager Watton indicated that they represent CWA and agencies in the Los
Angeles area. He indicated that he would provide the board a list of the agencies
they represent.
i) APPROVE A FIVE-YEAR AGREEMENT WITH INFOSEND TO PROVIDE
BILL PRINT AND ELECTRONIC BILL PRESENTMENT SERVICES IN AN
AMOUNT NOT-TO-EXCEED $1,310,000 ($262,000 ANNUALLY); AND
WITH ELECTRONIC PAYMENT EXCHANGE TO PROVIDE PAYMENT
TRANSACTION PROCESSING SERVICES IN AN AMOUNT NOT-TO-
EXCEED $735,000 ($147,000 ANNUALLY)
Director Robak requested a briefing on the proposed contract with Infosend.
Customer Service Manager Andrea Carey indicated that staff is proposing a two
year term contract with an option to renew every year for the next three (3) years.
She stated this is a very important function for the District and staff would like a
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two-year fixed agreement to assure the services for two (2) years. It is quite a
process to change vendors and the District did not want to get into a situation
where it needs to switch vendors quickly. After the two-year term, if the District
finds there is better pricing or the services provided is no longer what the District
is looking for, then the District has the opportunity to look for an alternate vendor.
Director Robak inquired about Infosend and their relationship with EPX and
Paymentus. Customer Service Manager Carey indicated EPX and Paymentus
are the two (2) payment processing providers who Infosend contracts with. The
District has selected EPX to provide the payment processing services. The EPX
contract is dependent upon Infosend receiving the contract with the District. She
stated that Infosend provides the front end services, such as, when a customer
makes a payment via the District’s website and the actual processing of the
payment is handled by EPX. She indicated that they are two completely
separate companies. She also indicated that Infosend is bonded/insured in
response to another inquiry from Director Robak.
Upon a motion by Director Robak, seconded by Director Croucher and carried
with the following vote:
Ayes: Directors Croucher, Gonzalez, Lopez, Robak and Thompson
Noes: None
Abstain: None
Absent: None
to approve staffs’ recommendation.
ACTION ITEMS
9. BOARD
a) DISCUSSION OF 2013 BOARD MEETING CALENDAR
There were no changes to the board meeting calendar.
INFORMATIONAL ITEMS
10. THESE ITEMS ARE PROVIDED TO THE BOARD FOR INFORMATIONAL
PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING
AGENDA ITEMS.
a) REPORT ON DIRECTORS’ EXPENSES FOR THE 3RD QUARTER OF
FISCAL YEAR 2013
The board waived presentation and recommended that the report be received
and filed.
b) INFORMATIONAL REPORT ON THE 3rd QUARTER FISCAL YEAR 2013
CAPITAL IMPROVEMENT PROGRAM
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Engineering Manager Dan Martin provided a report on the Third Quarter Fiscal
Year 2013 Capital Improvement Program. Please reference the Committee
Action notes (Attachment A) attached to staff’s report for the details of his report.
President Lopez indicated that the Engineering, Operations and Water
Resources Committee had commented on the 624-1 Reservoir Cover
Replacement Project with regard to the additional scope of the project and the
change order percentage. Engineering Manager Martin indicated that earlier in
2013, staff had identified a change to the scope of work for the existing contract
as it was discovered that the reservoir’s liner also required replacement. The
original contract was for the replacement of the reservoir cover only. The
committee felt that the change was not due to unforeseen conditions, but was
due to a change in the ‘scope’ of the project; the adding of the replacement of the
reservoir liner to the project scope. The committee felt that the additional cost
should not be considered in the change order percentage.
Director Croucher indicated that as the additional work was beyond the scope of
the original contract, the additional cost should not be included in the change
order percentage as the cost was not due to unforeseen conditions. He stated
that the original project could have been completed within budget, however, the
District decided to add additional work to the project.
Director Robak inquired on the status of the Calavo Gardens Sewer Project.
Engineering Manager Martin indicated that the project is substantially complete
and, at this point, they are working on punch list items. It was indicated that the
sewer system was originally installed in the early 1970’s where it replaced septic
systems. He stated that much of the rehabilitation work is to repair sags and
gaps in the system and replace manholes. The general life expectancy of sewer
systems is about 70 to 80 years.
REPORTS
11. GENERAL MANAGER’S REPORT
General Manager Mark Watton presented his report which included the District’s
Landscape Contest, Sea World’s Aquatica Opening, Website Migration, Rosarito
Desalination Project, water sales and District events.
General Manager Watton also provided copies of articles concerning the CWA
vs. MWD lawsuit. He indicated that CWA had requested documents from MWD
under the California Public Records Act (CPRA). Because MWD would not
comply with the CPRA and provide copies of the documents requested, CWA
filed another lawsuit against MWD requesting, through the court system, that
MWD comply with the CPRA and produce copies of the documents requested. It
is felt, because of the second suit filed by CWA, MWD forwarded a request for
records to CWA requesting a large number of documents. CWA asked, as part
of the second lawsuit, that the court not require CWA to produce the documents
requested by MWD as they are clearly not relevant to the first lawsuit. The judge
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has ruled in CWA’s favor on both issues. General Manager Watton also noted
with regard to the first lawsuit filed by CWA concerning MWD’s rates, that the
article indicated that:
“Under MWD’s current rate scheme, water ratepayers in San Diego
County will be overcharged for transportation services this year by $57
million. By 2021, the overcharges could grow to more than $217 million
annually.”
He stated when you add these overcharges up over the years, it quickly adds up
to billions of dollars. There is a great deal at stake in this lawsuit. He also noted
that LADWP is starting to produce the documents requested by CWA under the
CPRA and it is clear that CWA will receive a judgment for approximately
$500,000 for CWA’s attorney fees to compel Los Angeles Department of Water
and Power (LADWP) to produce the documents.
Director Croucher noted further that the additional documents received from
LADWP through the ruling of the lawsuit were pertinent to the rate lawsuit. CWA
would not have received these documents without filing the lawsuit. This the
reason CWA was also awarded attorney fees.
General Manager Watton also shared that the court upheld the QSA Agreement
in CWA’s lawsuit regarding the QSA. The issue went to trial several years ago
and the trial court found issues with some of the Environmental Documents and
other matters that went to appeal. The appellate court overturned the trial court
and remanded some matters back to the trial court. The trial court then upheld
the QSA Agreement. CWA is receiving significant water deliveries via the
Colorado River and having this water delivered at one of the highest priority is
very significant. The State of California and the Federal Government having the
entitlements on the river in order is very important.
Director Croucher indicated he wished to note that General Manager Watton was
instrumental as a leader on the QSA lawsuit which is significant to our region.
He also noted with regard to CWA’s request under the CPRA that they received
hundreds of documents. He stated as CWA receives rulings in their favor, it is
getting very encouraging.
He also commented that in reading some of MWD’s staff reports, they discuss
what they will do with excess funds. Due to increase water sales, etc., they have
more revenues this year than they anticipated. However, if you read further, the
staff reports then discuss MWD’s intent to raise rates.
He indicated that CWA launched their Watersmart Website and a special thank
you was presented to the Otay WD as the District assisted with many of the
videos that are on the site. CWA also discussed that their pipeline connection to
the Carlsbad Desalination Project will require realignment as it will cross a
bridge. This will require additional piping and will cost an additional $6 million.
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He also shared that the Grand Jury reviewed CWA’s decision making process
with regard to water reliability and the findings of the review indicated that CWA
is adequately handling this responsibility for the County. A copy of the findings
will be shared with the board.
12. DIRECTORS' REPORTS/REQUESTS
Director Robak indicated that he had a discussion with General Manager Watton
and Chief Financial Officer Beachem regarding the proposed rate increases. He
stated once he took a look at the details, he had confidence that staff is doing all
they can to keep rates as reasonable as possible. He stated he is happy to see
how the District’s rates compare to other local agencies.
13. PRESIDENT’S REPORT
President Lopez reported on meetings he attended during the month of May
2013 (a list of meetings he attended is attached).
14. ADJOURNMENT
With no further business to come before the Board, President Lopez adjourned
the meeting at 4:50 p.m.
___________________________________
President
ATTEST:
District Secretary
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President’s Report
June 5, 2013 Board Meeting
A) Meetings attended during the Month of May 2013:
1) May 1: Attended the District’s Regular Board Meeting
2) May 2: Attended a Special Meeting of the Metro Commission
i. Orientation training and a tour of the Point Loma Treatment
Plant was provided to members and alternates of the
Commission (see attached copies of agendas).
3) May 3: Attended the Abondigas Monthly Meeting sponsored by
the Mendez Group. General Manager Mark Watton was the
guest speaker. Attendees: Director Thompson and
Communications Officer Buelna.
4) May 8: Attended Focus Group Meetings. Discussed the
Rosarito Desalination Project with District constituents
to receive their comments and feedback on the project.
Attendees: Director Thompson, General Manager Watton and
Communications Officer Buelna.
5) May 9: Met with City of Chula Councilmember Bensoussan.
Updated her on the Rosarito Desalination Project and other
Otay matters. Attendees: Director Mitch Thompson,
General Manager Mark Watton and Communications Officer
Armando Buelna.
6) May 10: Committee Agenda Briefing. Met with General
Manager Watton to review items that will be presented at
the May Committee meetings.
7) May 14: Attended the District’s Special Board Meeting. The
Board discussed and approved the District’s Fiscal Year
2014 Budget.
8) May 15: Attended the District’s Finance, Administration and
Communications Committee. Reviewed, discussed, and made
recommendation on items that will be presented at the May
Committee Meetings.
9) May 16: Attended CSDA’s Quarterly Meeting. CSDA held their
Annual Educational Grant Program where their Grant
Recipients presented on their project and how it increased
awareness of the role of Special Districts in local
government. Attendees: Director Gonzalez and
Communications Officer Buelna.
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10) May 17: At the invite of Mexico Congressman and former
Otay Director, Jaime Bonilla, attended Mexico’s Northern
Border Committee meeting held in Tijuana, Mexico.
Discussed the Rosarito Beach Desalination Project.
Attendees: Director Thompson, General Manager Watton and
Attorney Richard Romero.
11) May 29: Attended the Metro Commission Finance Committee
Meeting. Discussed the Commission’s FY 2014 O&M and CIP
Budget and various staff contracts. (See attached copy of
agenda.)
12) May 31: Board Agenda Briefing. Met with General Manager
Watton and General Counsel Dan Shinoff to review items
that will be presented at the June Board Meeting.
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MINUTES OF THE
SPECIAL MEETING OF THE
BOARD OF DIRECTORS
OTAY WATER DISTRICT
May 14, 2013
1. The meeting was called to order by President Lopez at 3:12 p.m.
2. ROLL CALL
Directors Present: Croucher, Gonzalez, Lopez, Robak and Thompson
Directors Absent: None
Staff Present: General Manager Mark Watton, Attorney Richard Romero,
Chief of Information Technology Geoff Stevens, Chief
Financial Officer Joe Beachem, Chief of Engineering Rod
Posada, Chief of Administration Rom Sarno, Chief of
Operations Pedro Porras, District Secretary Susan Cruz and
others per attached list.
3. PLEDGE OF ALLEGIANCE
4. APPROVAL OF AGENDA
A motion was made by Director Thompson, seconded by Director Croucher and
carried with the following vote:
Ayes: Directors Croucher, Gonzalez, Lopez, Robak and Thompson
Noes: None
Abstain: None
Absent: None
to approve the agenda.
5. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO
SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S
JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA
No one wished to be heard.
AGENDA ITEM 4
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WORKSHOP
6. ADOPT RESOLUTION NO. 4210 TO APPROVE THE FISCAL YEAR 2013-2014
OPERATING AND CAPITAL BUDGET; APPROVE FUND TRANSFERS FOR
POTABLE, RECYCLED, AND SEWER; APPROVE TEMPORARY REDUCTION IN
THE RESERVE LEVEL OF REPLACEMENT FUNDS; ADOPT THE SALARY
SCHEDULE; OBTAIN APPROVAL OF THE DRAFT PROPOSITION 218 RATE
INCREASE NOTICES AND DIRECT STAFF TO MAIL THE NOTICES
Chief Financial Officer Beachem reviewed the objectives of the workshop which
included:
Review the FY 2014 Strategic Plan
Present for approval an $86.1 million Operating Budget
Present for approval a $13.8 million CIP Budget
Request approval to include in the budget, rate increases beginning with the
January 2014 billing
Water: 7.5%
Sewer: 7.9%
Obtain direction to prepare and send 5-year Proposition 218 notices of water
and sewer rate increases
Request approval of the annual fund transfers
Approve a temporary reduction in the potable replacement fund (setting
balance below target budget, but above minimum) to avoid short term
external borrowing
Chief Financial Officer Beachem indicated that staff has also looked at another
alternative for rates which is presented as “Option B” in staffs’ report. Also included
with the materials is a presentation for Option B along with Proposition 218 notices
for both Option A and Option B. Staff will be presenting Option A and at the end of
the presentation will discuss Option B.
Chief of Information Technology Geoff Stevens provided a presentation on the
District’s Strategic Plan and what has been accomplished over the last 10 years.
He stated that the District developed the first version of the District’s Strategic Plan
in 2002. Since that time, 350 objectives have been identified in the plan and over
250 have been completed which has included the implementation of the Automated
Meter Reading (AMR) program, the EDEN financial and billing system, a
comprehensive Cathodic Protection program, etc. The strategic planning process is
repeated in three (3) year increments and follows the same process:
1. Develop a three (3) year Strategic Plan based on the District’s vision, mission
and strategies
2. Execution/implementation of the plan
3. Determining the success through measuring performance
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4. Communicate findings of the performance measures
5. Based on performance, take corrective action if required
He reviewed new objectives that will be included in the Fiscal Year 2014 Strategic
Plan:
Define expenditures or projects that would require a cost/benefit analysis
(identify projects that the District will place focus on)
Replace the SCADA and Work Order systems over the next 12 to 24 months
Enhance security processes and planning
Implement the recommendation within the Integrated Water Resources Plan
Complete the Waste Water Management Plan
Improve measurement of project performance
He stated that the approval of the budget will allow staff to execute the Strategic
Plan and initiate the planning for the Fiscal Year 2015 to 2017 Strategic Plan.
Director Robak inquired, with regard to the improvement of process performance,
what process the District utilizes to assess the success of the implementation of
new hardware/software. Chief of Information Technology Stevens indicated that
when an objective is identified, staff also must identify a measurement plan that
specifies exactly what is to be accomplished and when it is to be accomplished. By
having specificity in the measurement, the District can measure the success of an
objective.
Chief Financial Officer Beachem reviewed the process to develop the District’s
budget. He stated the Strategic Plan is where the process begins and it is what
drives where the District will be focusing its efforts. With Strategic Plan as a guide,
all items are input into the 6-year rate model which includes the 6-year CIP Budget,
Operating budget, MWD and CWA rates, beginning year balances, the various
assumptions for interest rates, inflation, growth and sales, and the District’s targets
for debt coverage and reserve levels. From the input, the District generates an
Operating and CIP Budget and the water and sewer rates to support the budgets.
As the rate model is developed, staff assures that District objectives are met. Some
of the objectives include:
Increasing the debt coverage ratio to the 150% target level
Funding the $86.1 million Operating Budget
Funding the $13.8 million Capital Budget
Maintaining all reserves at target level
Assuring that all are accomplished in accordance with the District’s Reserve
Policy
Keep District’s rates as low as possible
He stated that staff is also requesting approval of the proposed fund transfers:
4
Potable:
Replacement to Designated Betterment - $540,000
Replacement to Designated Expansion - $357,000
Sewer:
General Fund to Designated Betterment - $774,000
Potable to Sewer:
Potable Replacement to Designated Sewer Expansion - $40,000
Potable Replacement to Designated Sewer Betterment - $221,000
Potable Replacement to Sewer Replacement - $267,000
From the Operating Budget, staff is proposing transfers to the following reserve
funds:
From Potable ($3,418,000) and Recycled ($10,000) transferring a total of
$3,428,000 to the Expansion Reserve
From Recycled transferring $125,000 to the Betterment Reserve
From Recycled transferring $4,230,000 to the Replacement Reserve
From Potable transferring $152,800 to the Sewer General Fund
From Potable ($1,913,100), Recycled ($66,900) and Sewer ($61,400)
transferring a total of $1,242,900 to the OPEB Trust Fund
From Potable transferring $1,913,100 to the Potable General Fund
Chief Financial Officer Beachem indicated that staff had projected in last Fiscal
Year’s (FY) six-year budget projections, water rate increases that are pretty close to
this year’s projection for FY’s 2014 and 2015. However, the increases projected for
FY’s 2016 through 2017 is about 10% higher from last FY’s projections; 2.9%
versus today’s projection of 7.5% in 2016 and 2.8% versus today’s projection of
7.5% in 2017. This is mainly due to the estimated increase of water cost from CWA
for supplies from the Carlsbad desalination project starting in 2016. Staff is
proposing a smooth rate increase of 7.5% in FY’s 2014 through 2017. This will also
allow the District to meet its debt coverage ratio target in 2017 of 150% and above.
He indicated with sewer, the projected six-year budget projections for sewer last FY
is the same as projected for this FY. The projected rate increases for sewer from
FY 2014 through 2019 is 7.9%. In response to an inquiry from Director Robak,
Chief Financial Officer Beachem indicated that the rate increase is due to a rate
increase from the City of San Diego’s Metro Commission and the District’s needs
for operating expenses. He stated that last year the District projected where it
needed to be to assure reserves are on target to fund the sewer CIP and this year
there is nothing different in staffs’ projections. Thus, staff is proposing a 7.9%
increase this FY as projected last FY.
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The District’s Debt Coverage Ratio in FY 2013 is projected to be 138%. This is a
fairly low number. Standards & Poor’s is reviewing the District’s rating for the
refinancing of the 2004 Certificates of Participation and had reaffirmed the District’s
“AA” rating. However, they moved the District from the “Strong” category to the
“Good” category and placed the District on their negative watch list. If the District’s
rates do not support a debt coverage that is higher, they will likely downgrade the
District’s rating as Fitch had done a year ago (AA-).
Chief Financial Officer Beachem indicated that the lower debt coverage ratio is a
result of 30% decrease in water sales. He stated that the District’s water sales have
leveled off and it is expected that the District’s debt coverage ratio will increase to
the 150% target level. He noted that the District’s debt coverage ratio without
growth (capacity fees paid by development) is the ratio that staff wishes to keep
above 150%. When the District matures, it will need to be able to support a strong
financial position without growth revenues.
Director Thompson inquired when the District would need to issue debt again.
Chief Financial Officer Beachem indicated that it is likely a few years beyond 2020.
It depends on growth. If growth is as strong as projected six years from now, it may
be many years from then that the District would need to issue debt. The District’s
rate model does not go out that far, but it is projected that the District will be in a
strong position in six years.
Chief Financial Officer Beachem indicated that 95% of the District’s proposed rate
increase is a result of the District’s suppliers (CWA, MWD, City and County of San
Diego and SDG&E) rate increases. Five percent of the increase is due to the
District’s internal needs to increase the District’s debt coverage ratio and maintain
its reserve funds.
He reviewed items that are helping to keep rates down:
Salary and benefit costs net of $180,700 due to:
Reduction in staffing levels (5 positions) saving $519,900
Materials and Maintenance decrease of $264,100
Reduction in 6-year CIP of $9.3 million (projects have been delayed due to a
slowdown/decrease in development)
No new water debt issuances in 6-year timeframe
He indicated the following items are putting an upward pressure on rates:
Water cost increase of $3,262,700 million
Carlsbad Desalination increases the rate from 7.3% to 7.5% in FY 2014 (with
more significant increases in future years)
Administrative costs increase of $277,700
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Chief Financial Officer Beachem indicated that staff had presented to the board in
March 2013 the findings of the Rate Study for water and sewer. The board had
directed staff to incorporate the water and sewer rate structure changes into the
budget based on the Cost of Service Study, Best Management Practices and
Industry Standards. The changes have been incorporated into the proposed budget
for FY 2014.
He stated that with the proposed water rate increase for FY 2014, the District would
rank as the eighth (8th) lowest cost water provider with an average residential bill of
$77.84 for customers utilizing an average of 14 units of water a month. The
District’s goal is to remain under the mid-point among the local water agencies.
He indicated with regard to the proposed sewer rate increase of 7.9% in each of the
next six (6) years, the typical residential customer will see a $6.20 increase per
month where $3.34 of the increase is due to the findings of the Cost of Service
Study and $2.86 is due to the 7.9% rate increase. With the proposed increases in
FY 2014, the District will be the sixth (6th) lowest cost sewer service provider with an
average residential bill of $42.35 for customers who use an average of 14 units of
water a month. Again, the District’s goal is to remain under the mid-point among
the local sewer providers.
He stated in 2015, it is projected that the District will need to borrow to fund the
sewer CIP. It is proposed that the District borrow the needed $10.2 million from the
State Revolving Funds. This is a low cost and low interest rate (1.7% for 20 years)
debt with no issuance cost other than internal costs (staff time). The sewer budget
will be reimbursed in FY 2014 for funds borrowed by the potable budget last FY and
reserves are all on target.
Chief Financial Officer Beachem introduced Mr. Alan Nevin of the London Group
who had worked with staff to develop the growth projections for the development of
the District’s budget. He stated that Mr. Nevin will be presenting an economic
overview for San Diego County. Mr. Nevin indicated that this year he included a
demographic profile for the County. He stated that demography sets the path, in
terms of utility usage, for future years. He indicated that the United States has
changed pretty dramatically in the last 50 years. The birth rate has dropped by half
and the average age of the population is moving upward. The composition of
households is changing. Households are getting smaller, the population is getting
married later (from an average of 23 to 24 years old to 28 years old) and having
less children (from two [2] to three [3] children to having only one [1] child). He
stated that only one (1) in every seven (7) households in the County is composed of
a mother, father and two (2) children. Twenty-five percent of all the households in
the County are only one (1) person. He stated that SANDAG projects that
household size will average 3.3 persons. He stated all these changes are indicative
of the demography of the County.
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In the mid-2000’s the County was producing 9,000 single-family homes a year with
very little Townhomes. Today, we are producing 2,000 single-family homes a year
(a drop of approximately 80%) and the production of condominium units is virtually
non-existent. He stated that the District’s service area is dramatically different from
the rest of San Diego County. He stated that the majority of the County is built out
and much of the County’s construction in the northern area is mainly high density
(30 to 50 units an acre; 3 to 4 story buildings) and the supply of single family homes
is very meager. He stated the preponderance of available land for development is
within the District’s service area. There will be a rapid change in 2015 when
Villages 8 and 9 in Otay Ranch and Millenium’s 3,000 units are constructed. There
will be, however, a large difference between today and the mid-2000’s. In the mid-
2000’s the majority of residential construction was single family homes. Today, 25
to 30 units are being constructed per acre. He stated in the next decade there will
be very little single family homes being constructed, thus, there will be reduced
water use in the new developments as there will be a decline in homes with
landscaping. There will also be a decline in commercial development in the
District’s service area. Water needs will be declining on a per unit basis, however,
three will be more units to service. Thus, there will be a balance.
Director Robak inquired on Mr. Niven’s thoughts with regard to SANDAG’s
projection that the size of households will drop to 3.3 persons; if this was the
realistic household size. Mr. Niven indicated that he felt that there would likely be
2.9 to 3 persons per household.
Director Thompson asked if there has been any analysis of how immigration reform
would impact the County’s population. Mr. Niven indicated in the last 30 years, the
size of the population for persons who were not born in the United States has
doubled from 12% to 25%. However, the birth rates for the Hispanic and Asian
populations have dropped dramatically in the last 30 years. The birth rates are now
almost the same as non-Hispanic/White population. He indicated that the Asian
birth rates have even dropped to below the non-Hispanic/White population. He
stated that he did not see any changes to these profiles in the future.
The board thanked Mr. Niven for his presentation and insights.
Chief of Engineering Rod Posada presented the District’s projected six (6) year CIP
from 2014 to 2019. He stated that staff utilized Mr. Nevin’s and the developers’
projections to develop the District’s growth projections which is presented in slide
number 27 of staffs’ report (see attached copy of presentation). He indicated that
Single-Family homes (200 units), condominiums (200 units) and apartment units
(900) are the majority of the developments projected in FY 2014. There will also be
approximately $46 million in commercial development mainly in the Otay Mesa area
with some in the City of Chula Vista. He indicated that growth, thus, will remain
relatively flat in FY 2014.
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He stated that in the development of the six-year CIP budget last year, staff had
projected that the CIP Budget requirements for FY 2014 was $19.2 million. In the
development of the CIP budget for FY 2014 this year, staff reprioritized projects
based on recent requests for water availability letters, Water Supply Assessment
reports, and the District’s Water Resource Master Plan, and projects that the CIP
Budget requirement for FY 2014 is $13.8 million. The six-year CIP Budget total for
FY’s 2014 to 2019 is $107.1 million. Of the $107.1 million, $63.4 million is
designated for Capital Facilities Projects, $32.73 million for Replacement/Renewal
Projects and approximately $11 million for Developer Reimbursements and Capital
Purchases. He presented the high profile CIP projects which included:
Potable Water Projects:
Otay Mesa Desalination Conveyance and Disinfection System, $28.4
million
870-2 Pump Station Replacement, $12 million
Reservoir Improvement, $7 million
Sewer Projects:
Sewer System Rehabilitation, $5.7 million
Campo Road Sewer Replacement, $5.5 million
Accounting Manager Rita Bell presented the details of the FY 2014 Operating
Budget. She indicated the District’s water sales projections for FY 2014 are based
on the prior year sales (April 2012 through March 2013) which have been affected
by price elasticity, conservation, economy and weather patterns. She stated that
from FY 2009 to FY 2010, the District had a large decline in water sales which is
attributed to the historically large rate increase implemented in FY 2009. The rate
increase was a pass-through from the increases implemented by the District’s water
suppliers. She stated that since FY 2009, water sales have leveled off.
She reviewed the Cost of Service Study recommendations for water that have been
incorporated into the FY 2014 budget by board direction:
Adjust the monthly fixed fee due to the updated meter equivalencies to match
AWWA Standards
Adjust tier and break points based on current usage patterns for Commercial
and Recycled customers
Create a Recycled Commercial Rate
The District does not yet have a customer under this category,
however, such a customer is anticipated in the next five (5) years
The rate is set at 85% of the Commercial Rate
Updated the Fire Service Fee to reflect the true Cost of Service
She stated the District’s potable sales have increased by $5.3 million. A large
portion of the increase in revenue is due to last year’s rate increase and a change in
the sales volume and $2.1 million is due to the proposed FY 2014 rate increase. It
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was indicated that the potable water volume is expected to increase 0.2% based on
growth projections. She stated when the District sets its rates, no more than 30% of
the water revenue will be collected through fixed fees to comply with Best
Management Practice 1.4. This is an industry standard.
She indicated that recycled sales revenues will increase $637,700 or 8.3%. She
shared that the increase in revenues is due to the rate increase implemented last
fiscal year and the resetting of the meter equivalency fee. She stated that recycled
customers tend to have larger meters and, thus, they need to contribute more
towards the maintenance of the system for the water capacity they require. A
smaller portion of the recycled revenue increase is due to the increase in the
recycled water sales volume of 23,600 units or 1.3% and the remaining $173,000 is
due to the proposed rate increase that is built into the FY 2014 budget.
Accounting Manager Bell reviewed the Cost of Service of Study recommendations
for sewer that have been incorporated into the budget as the board’s direction:
Adjust monthly fixed fees based on meter equivalency to match AWWA for
all customer types
This will make water and sewer consistent as the water meter is
utilized to measure sewer use
Single-Family Residential:
Same monthly fixed fee for ¾” and 1” meters as the same volume is
flowing through to the sewer
Phase-in the Cost of Service increase:
o Year 1 – Implement Usage Fee increase
o Year 2 – Implement Fixed Fee increase
o Year 3 – Implement repayment of the phase-in increase
(repayment of the first year delay)
Multi-Residential: Charge system fee based on meter size instead of per
dwelling unit
Commercial:
Eliminate ASU calculation and instead base fixed fee on meter size
Update the strength factors to State Water Resources Control Board
(SWRCB) standards
Churches and Schools: Change the methodology to match commercial
customers
She indicated that the overall sewer revenue increase based on the proposed rate
increase of 7.9% and the implementation of the recommended changes of the Cost
of Service Study, sewer revenues will increase $146,400 or 5.7%. The increase is
not for the full 7.9% in the first year as the Fixed Fee increase will not be
implemented until year two (2).
The District also receives revenues from other sources which includes:
10
Capacity Fee Revenues will increase $136,600 due to an increase in projects
funded by capacity fees
Betterment Fee Revenues will increase $60,800 due to an increase in
projects funded by betterment fees
The Grant Revenue of $20,000 will be eliminated, but will be offset by
decreases in the Conservation budget
There will be no significant change in Property Tax revenues
Miscellaneous Revenues will decrease $68,000 due to the completion of the
AMR meter replacement project. When the project is complete, the District
will no longer have scrap metal to sell.
She stated that the District’s water cost is increasing $3,262,700 or 7.8%. She
reviewed the reasons for the water cost increases which included:
Variable Cost Increase:
Potable costs increase of $2,476.700 or 8.1% due to the District’s
water suppliers (CWA and MWD) increasing their rates
Recycle costs increase of $95,500 or 6.3% due to the “Take or Pay
Contractual” agreement with City of San Diego and the volume
increase of recycled water use (there is no recycled rate increase from
the City this fiscal year)
Fixed Cost Increase:
Potable costs increase of $690,500 or 7.1% due to a rate increase
from the District’s water suppliers (CWA and MWD)
There is no change in the recycled water costs
She indicated that sewer costs will increase $49,100 or 3.9% in FY 2014. The
primary reasons for the increase is the City of San Diego’s Metro Commission will
increase their cost to the District $13,700 and the Spring Valley Sanitation District’s
will increase their cost $35,400 to the District.
Accounting Manager Bell indicated the one of the largest increase in FY 2014 is
power cost. Power cost from SDG&E is estimated to increase $325,300 or 13.7%.
The reasons for the increase include:
Water demand increase of 0.2% for potable and 1.4% for recycled
SDG&E is anticipating up to four (4) separate 2.5% rate increases due to
their rate case, increase in natural gas prices, shutdown of San Onofre, and
transmission rate increases
To offset the energy cost increases, the District has implemented energy savings
programs which have been successful. The District will continue to operate at non-
peak and semi-peak rates.
11
Director Robak inquired, as the District’s customers are buying less water, is it also
causing sewer revenues to decrease because sewer is based on water use. Chief
Financial Officer Beachem indicated that that was correct.
In response to another inquiry from Director Robak, General Manager Watton
indicated that part of the issue with regulated utilities, in this case SDG&E, their rate
of return is approximately 11% on invested capital. If you try to find an investment
with the same return, it would be very hard to find and is the reason SDG&E is
getting a lot of criticism.
Chief of Engineering Posada indicated that meter sales projections are based on
discussions with developers and the information provided is compare to the plans
that developers have submitted for new developments. Staff also references Mr.
Allen Nevins economic forecasts.
Chief of Administration Rom Sarno reviewed the staffing changes. He indicated
that each year the Senior Team members conduct an analysis of staff workload
requirements and existing vacancies. Based on the review, five (5) vacant positions
were deleted reducing the fulltime equivalent (FTE)/headcount from 148 to 143 in
FY 2014. He stated that the District has reduced the number of staff members from
174.75 in 2007 to 143 in 2014; a reduction of 31.75 employees or 18.2%. The
cumulative cost savings from the reduction in staffing is approximately $14,181,300
from 2007 to 2014. From an efficiency standpoint, the customer to employee ratio
has increased from 301 customers serviced per employee in 2007 to 380 customers
serviced per employee in 2014 or an increase of 26.1%.
He indicated that salaries and benefits have decreased $180,700 or 1%. The items
increasing salary and benefits include:
Increase in in-range adjustments per the MOU of $129,300 (no COLA
increase)
Increase in Operating budget caused by a decrease in CIP charges of
$445,200
Increase in health insurance costs of $121,500
Offsetting the increases in salaries and benefits are a:
Decrease in the staffing level of ($519,900)
Decrease in Vacation/Sick/Holiday, Social Security and other labor related
costs due to the elimination of staffing of ($190,600)
Decrease in Pay for Performance of ($105,000)
Decrease in Overtime of ($58,800)
Staff is also requesting that the board approve the salary schedule which is
attached as Exhibit 2 to staffs’ report.
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In response to an inquiry from Director Croucher, Accounting Manager Bell
indicated that cost savings realized by outsourcing workload is netted against the
cost saved by eliminating positions. She stated that the numbers presented do
reflect this net savings.
Director Thompson inquired what is the percentage change to total compensation
cost per employee in comparison to total labor cost. Staff indicated that they would
bring this figure back to the board. Director Thompson observed that at some point
the District will have more retirees in the system versus active employees and
inquired how this impacts the District’s total labor cost with regard to pension cost.
General Manager Watton indicated that the PERS cost is an actuarial calculation
that is done periodically. The largest impact is how PERS is calculating their return.
Staff will review these numbers and provide the board the information. He stated
that the advice the District receives from PERS is pretty reliable and the District’s
pension is pretty well funded.
Chief of Operations Pedro Porras reviewed changes in the District’s materials and
maintenance costs and indicated that the District has decreased it materials and
maintenance cost $264,100 or 10.6%. He stated the decrease is due to:
Decrease in infrastructure equipment and supplies of $87,500 or 14.9%
Decrease in fuel and oil of $72,100 or 19.6%
The decrease has been consistent since 2006 and is attributable to
the use of SR-125 and the District’s use of more fuel efficient vehicles.
Decrease in meter and materials of $53,100 or 28.2%
With the completion of the AMR retrofit project, the District will not
need to purchase additional meters. However, in three (3) to five (5)
years the District will need to start replacing the batteries of the
automated meters.
Decrease in chemicals of $47,900 or 10.1%
Due to the improvements to the District’s treatment plant, the
treatment process requires less chemicals. A lesser amount of
chemicals are also being utilized on the recycled system.
Offset by increase in District-wide contracted services of $24,100 or 5.5%
The District no longer employs an in-house welder. The District
instead hires a welder on a case-by-case basis when the services are
required which has increased contracted services costs.
Accounting Manager Bell indicated that the overall administrative expenses
increased $277,700 or 5.8%. She reviewed the reasons for the increase:
Increase in services of $180,000. These increases, however, are all one-
time increases and include:
Increase of $100,000 is related to a Water Conservation Program
Increase of $60,000 is related to the cost to prepare a Water and
Sewer Capacity Fee Study
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Increase of $35,000 is related to the cost to prepare a Condition
Assessment Study for the Otay river Potable Water Trestle
Increase in bank fees of $73,700 related to customer credit card payments.
As the cost of water increases, the fees to process larger bill payments also
increases. It was noted by accepting credit card bill payments, the District
has reduced its bad debt expense as more customers are paying on time.
Increase in Property Liability Insurance of $35,200 related to the increase in
the number of facilities and property to be insured.
Increase in General Office Expense primarily due to postage for Proposition
218 noticing of $24,600.
Director Robak inquired what the $100,000 increase for a water conservation
program is related to. General Manager Watton indicated that at this point it is a
place holder as the District develops other options/programs to encourage water
conservation.
Director Thompson inquired with regard to customers utilizing credit cards to pay
their bills if the District has not considered charging customers the credit card
processing fee. Chief Financial Officer Beachem indicated that the District receives
a discount if the District’s customers do not pay the credit card payment fee. There
is also a cost/benefit to providing the additional payment option as the District also
avoids the cost to process check payments. Staff will review the cost/benefit to
receiving bill payment through credit card payments and provide the information to
the board.
Director Croucher inquired with regard to the increase in services of $180,300 that
the items noted which are contributing to increased costs do not add up to
$180,300. Accounting Manager Bell indicated that staff has only presented those
items which have the largest impact to Administrative costs. She stated that there
is a large list of items impacting Administrative costs which net to $180,300.
Director Croucher also inquired if the Proposition 218 notices could be included with
the mailing of customer bills. Chief Financial Officer Beachem indicated that the
notices could be included with customer bills. However, because of the size of the
notices, it would increase postage. There is also a timing issue as bills are mailed
in various batches over a month based on when the customers’ meters are read. It
was noted that a notice must be mailed physically to customers and staff had also
considered mailing a postcard advising customers that the rate notice is available
on the District’s website or to contact the District for a copy. It was indicated that
Helix Water District had forwarded postcards and found that it was more costly and
time consuming as a large number of their customers asked that the notice be
forwarded to them.
Accounting Manager Bell reviewed those items which are reducing Administrative
costs which included:
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Decrease of $54,300 in Regulatory Agency Fees
Decrease in Election Fees for the Registrar of Voters of $36,000 as
there will be no elections for a director in FY 2014.
Decrease in Department of Public Health fees of $21,000 as they are
reducing the number of required site visits which reduces their fees.
Decrease in conservation incentives for MF/HOA cash for water smart plants
and residential smart landscape of $21,000.
Decrease in technology hardware and software of $26,100.
Decrease in Bad Debt Expense of $23,300 as customers have more options
to pay their water bills, such as by credit card.
Accounting Manager Bell indicated that the proposed FY 2014 Operation Budget is
$86.1 million which includes both water and sewer. Staff is also proposing the
consolidation of Improvement Districts (IDs) which will be included in the
Proposition 218 Notices. Staff is recommending that ID 25 be consolidated into ID
20 and ID 19 into ID 22.
She stated in compliance with Proposition 218, staff is proposing a five-year rate
increase notice and public hearing and is requesting:
Authorization to pass-through rate increases from the District’s wholesale
providers; CWA, MWD, City and County of San Diego and SDG&E.
That the board authorizes a 10% maximum increase for internal operational
requirements.
Accounting Manager Bell also presented the approximate number of notices to be
mailed to each customer type (reference slide number 65 in attached presentation)
and noted that the notices will be mailed to both tenants and owners of properties.
Thus, more notices will be mailed than the number of District accounts.
She stated in conclusion, staff is presenting a balanced budget which supports the
District’s Strategic Plan and the water and sewer needs of its customers. Staff is
proposing two options (Option A and B) for the proposed water rate increase and a
7.9% sewer rate increase to support the FY 2014 budget. She indicated that Chief
Financial Officer Beachem will review, at the close of staff’s presentation, proposed
Option B. Staff is also proposing that the board approve the detachment and
annexation of the two ID’s as presented earlier.
Chief Financial Officer Beachem presented the two water rate increase options. He
indicated that Option A provides for a rate increase of 7.5% for four (4) years (FY’s
2014 through 2017) and Option B provides for a rate increase of 6.4% for two (2)
years (FY’s 2014 through 2015) and 10.6% in FY 2016 and 5.3% in FY 2017. He
stated that Option B does not avoid a spike in rates that is caused by the Carlsbad
Desalination Project. He indicated that the delay in the revenue stream of Option B
also results in short term external borrowing of $2.6 million for about 2.5 years. This
is required to avoid the District Replacement Fund Reserve from going below its
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minimum target level as identified by the District’s Reserve Policy. Also, at the end
of the Rate Model six-year time period, the District will have slightly less reserves of
approximately $3.1 million and a resulting delay in the return of the Replacement
Reserve to target of approximately 1.5 years. He indicated that the debt coverage
ratio is slightly lower under Option B compared to Option A.
Chief Financial Officer Beachem indicated that he does want to emphasize that both
options are financially responsible. He stated, because of his fiscal conservative
nature, he believes Option A places the District in a slightly better position to
address any rate spikes. If the District’s wholesalers were to miss their estimated
rate increases, the District would be in a slightly better position to address the
higher increase.
He reviewed the benefits and drawbacks of both options. He indicated with regard
to:
Option A:
Benefits:
Smooth rate without a rate spike
Financially better position to respond to CWA’s Carlsbad Desalination
Project cost
Strengthens the District’s financial position more rapidly
Drawbacks:
Slightly higher rate increases than Option B in the years other than the
year of the rate spike (10.6% in 2016)
Option B:
Benefits:
Slightly lower rate increases in the years surrounding the rate spike
Drawbacks:
Requires short term external borrowing
More vulnerable to unknown factors regarding Carlsbad Desalination
costs
Slightly lower financial strength, lower reserves and debt coverage
ratio, and a delay in returning to the target level for the replacement
reserve
Staff is requesting that the board adopt Resolution No. 4210 to approve the:
FY 2014 Operating and CIP Budget
Listing of Job Classifications and Salary Schedule
Approve the fund transfers
Approve a temporary reduction of the potable replacement fund level below
target, but above the minimum
Direct staff to prepare and send Proposition 218 notices of public hearing
with proposed rate changes to customers
16
In response to an inquiry from Director Croucher, Chief Financial Officer Beachem
indicated that that would fall under a pass-through. If the City of San Diego Metro
Commission were to have a significant rate increase, it would not impact the District
because the Proposition 218 Notices that staff is proposing to mail to customers
indicate that the District would pass through rate increases or decreases imposed
from its suppliers. Director Croucher noted that there are other issues beyond the
District’s control such as the Bay Delta pumping issues and the secondary
conveyance of water from the southeast. Chief Financial Officer Beachem agreed
that there are a number of unknowns which also include the City of San Diego’s
reclaimed water rate, CWA’s allocation of the cost of the Carlsbad Desalination
Project, etc. He stated that the cost increases would be a pass-through as per the
proposed Proposition 218 Notices. They are certainly big unknowns and may
cause the District to have higher rates.
Director Croucher requested a list of possible issues that could have a large impact
to the District’s cost, such as, the CWA vs. MWD lawsuit, Colorado River Water and
Bay Delta, etc. This would be helpful to Directors to make them aware of possible
issues. Chief Financial Officer Beachem indicated that in the official statement of
the bond documents, staff highlighted areas that can be of risk to the District. He
stated that staff might include that information in the budget documents. Director
Croucher thanked staff for the good work on the budget.
Director Robak inquired when staff felt the District will start seeing the costs from
the Carlsbad Desalination Project. Chief Financial Officer Beachem indicated that
the costs are estimated to hit in 2016 or 2017. It was discussed that Option A
includes the anticipated costs from the Carlsbad Desalination Project, Option B,
does not. Staff believes the rate setting for the Carlsbad Desalination Plant will be
set likely next year. Director Robak inquired what the cost differential was between
the proposed FY 2014 rate increase of 7.5% in Option A and the 6.4% increase in
Option B. Chief Financial Officer Beachem indicated that he did not have the dollar
value, but the overall difference is about 10%. He referenced the presentation for
Option B (attachment M to staffs’ report) and indicated that it provides the difference
in total revenue collected between Option A and B in FY 2014. Staff could provide
the overall difference in revenue following today’s meeting.
Director Robak indicated that he felt that Option A was the prudent option. He
indicated that the District needs to make it clear to its customers the reasons for the
increases and the implications of the Carlsbad Desalination Project and that Option
A puts the District in a stronger financial position and avoids a rate spike.
Director Thompson indicated that he believes that the District should implement
Option A because of the reasons indicated by staff. He stated that he would like to
see a hybrid between Option A and B as in FY’s 2018 and 2019 the projected rate
increase is 2.3% (both years) in Option A and 3.3% (both years) in Option B. He
stated that he would like to see more of a blend over the six years as in the last two
17
years of the model the increase is very small versus 7.5% in Option A in FYs 2014
through 2017. He stated he really doesn’t like double digit increases and that he
would like to see a blending of the increases. Chief Financial Officer Beachem
indicated in the third year of the six years, the Carlsbad Desalination Project costs
will be hitting fully. To maintain the District’s operational debt ratio, 7.5% increases
are needed in FY’s 2014 through 2017. This will assure that the ratio does not drop
below the District’s target level of 150%. Chief Financial Officer Beachem
referenced slide number 17 of staffs’ presentation which graphically presents the
District’s ratio from 2014 to 2017 with the 7.5% rate increases incorporated (see
attached copy of presentation). He noted that double digit increases would be
required in Option B if the District wished to avoid borrowing. In response to an
inquiry from Director Gonzalez, Chief Financial Officer Beachem indicated that in
Option B the District would borrow in FY 2017.
General Manager Watton responded to another inquiry from Director Thompson
and indicated that there are no changes to the Capital Program which would put any
infrastructure at risk or delay maintenance. Staff reviewed the projects and
determined which projects need to be constructed or could be delayed based upon
need. Director Thompson further inquired what percentage of the District’s assets
has utilized replacement reserves and do we ever determine on an annual basis
how much we need to maintain all the District’s infrastructure long term. Chief of
Engineering Posada indicated that staff does a cathodic protection evaluation every
year and based on the evaluation, determines which pipelines and reservoirs need
to be replaced or require maintenance. General Manager Watton further indicated
that the District does not have one comprehensive plan, however, staff will be
completing its Asset Management System which will maintain such information for
the District’s assets/infrastructure.
The board complimented staff on their work on the budget and indicated that they
were very pleased with the knowledge and experience of the District’s staff.
Director Robak noted with regard to the “Notice of Public Hearing” that it should
include information indicating that a portion of the increase is due to the cost of
CWA’s Carlsbad Desalination Project. He stated that he felt that information
provided on the sewer rate increase was very helpful and that the increase is due to
rate increases from the City of San Diego’s Metro Commission, the District’s sewer
processing service supplier. He also suggested that the District include information
on what customers can do to help conserve water and provide information about the
District’s programs and website, and the Water Conservation Garden.
Director Robak inquired when the hearing will be held. Chief Financial Officer
Beachem indicated that the Notices are scheduled to be forwarded in approximately
two (2) months and the hearing will be held at the September board meeting.
A motion was made by Director Robak, seconded by Director Croucher and carried
with the following vote:
18
Ayes: Directors Croucher, Gonzalez, Lopez, Robak and Thompson
Noes: None
Abstain: None
Absent: None
to approve the FY 2014 Operating and Capital Budget utilizing Option A; approve
the fund transfers for potable, recycled and sewer; approve temporary reduction in
the reserve level of replacement funds; adopt the salary schedule; approve the draft
Proposition 218 Rate Increase Notices and direct staff to mail the notices.
7. ADJOURNMENT
With no further business to come before the Board, President Lopez adjourned the
meeting at 5:55 p.m.
___________________________________
President
ATTEST:
District Secretary
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: July 3, 2013
SUBMITTED BY:
Dan Martin
Engineering Manager
PROJECT: P2513-001103
DIV. NO. 3
APPROVED BY:
Rod Posada, Chief, Engineering
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: Approve Change Order No. 3 to the Contract with Basile
Construction, Inc. for the 12-Inch Potable Water Pipeline in
Orange Avenue, I-805 Crossing Project
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District (District) Board of Directors (Board)
approve Change Order No. 3 to the existing contract with Basile
Construction, Inc. (Basile) in the amount of $19,289.50 for the 12-
Inch Potable Water Pipeline in Orange Avenue, I-805 Crossing Project
(see Exhibit A for Project location).
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To obtain Board authorization for the General Manager to execute
Change Order No. 3 in the amount of $19,289.50 to the contract with
Basile for the 12-Inch Potable Water Pipeline in Orange Avenue, I-805
Crossing Project.
ANALYSIS:
At the January 8, 2013 Board Meeting, the Board awarded a
construction contract in an amount of $872,000 to Basile to construct
a new 12-Inch Potable Water Pipeline in Orange Avenue, for the I-805
Crossing Project. The Project consists of the installation of
AGENDA ITEM 6a
2
approximately 1,900 linear feet of 12-inch water line in Orange
Avenue between Melrose Avenue and Oleander Avenue in the City of
Chula Vista. The construction of this new water facility will meet
the projected demands and maintain a redundancy in the water system
that serves this area as Caltrans completes the transportation
infrastructure construction of express lanes and a Direct Access Ramp
structure at the I-805/East Palomar Overpass.
Since the award of the construction contract by the District to
Basile, two contract change orders have been approved for potholing
and redesigning tie-in connections for the water line due to utility
conflicts. These change orders utilized bid item allowances provided
for in the contact approved by the Board and resulted in no change to
the overall contract value.
Change Order No. 3 (Exhibit B), which serves as a close-out change
order for the contract, consists of a variety of items including:
A differing site condition associated with the alignment of the
existing utility openings located within the I-805/Orange Avenue
bridge that impacted the planned water line installation.
Working around and repairing damage to electrical utilities
within the Caltrans right-of-way not shown in the plans or as
part of the USA Mark-out for construction.
Removal and reconstruction of an 18-inch reinforced concrete
pipe (RCP) storm drain not shown in the plans or as part of the
USA Mark-out for construction.
Restoration of pavement at locations that were potholed during
the design phase of the Project.
Reconciliation and reallocation of unused contract allowances
associated with Allowance Bid Items 13–15, and 19 to support the
Change Order work.
Lastly, this Change Order provides for acceleration of the work being
performed by District’s contractor, Basile, as requested by Caltrans.
The Caltrans work to demolish the adjacent I-805/East Palomar bridge
and take the existing water main within that bridge out of service is
dependent on putting the new water line constructed by this Project
in service. The work associated with the differing site condition of
the existing utility openings located within the I-805/Orange Avenue
bridge delayed the overall completion of the Project by 42 days. The
Project acceleration included in this change will mitigate Caltrans
impacts associated with the revised completion date of the Orange
Avenue water line work by reducing this time impact by 15 days.
Caltrans has requested that the District accelerate the work and has
initiated Utility Agreement 33601 (Exhibit C) to compensate the
District for 100 percent of the costs associated with the Project
3
acceleration. The agreement will be executed in substantially the
same form as attached to this report.
The following table summarizes the items in Change Order No. 3 and
accounts for reallocation of unused allowances and the application of
original allowances included in the contract to arrive at the net
increase to the contract.
Description Amount
Utility Opening differing site condition (Bridge
Realignment)
$38,000.00
Additional Electrical Utilities, Removal, and
Reconstruction of 18” RCP, Pavement Restoration
$23,039.00
Reconciliation and reallocation of unused contract
allowances to support Change Order work
<$20,142.50>
Application of original contract allowances for
contract Bid Items 17 and 19
<$31,313.00>
Project Acceleration as requested by Caltrans $9,706.00
Total $19,289.50
A complete breakdown of the costs associated with each item and the
associated method of compensation is included in Change Order No. 3
(Exhibit B).
Change Order No. 3 also addresses contract time as a result of the
items included in the Change Order. An assessment of the time
impacts associated with each change is provided in Exhibit B
including the addition of 42 days associated with the utility opening
differing site condition and the reduction of 15 days associated with
the Project acceleration. In total, 27 days will be added to the
contract which will result in a revised total contract duration of
212 calendar days as a result of this Change Order.
In summary, the net increase to the Project for Change Order No. 3 is
$19,289.50 and 27 calendar days. As mentioned above, Caltrans will
reimburse the District $9,706.00, which reduces the actual value of
Change Order No. 3 to $9,583.50.
Basile is nearing completion of the water line construction in Orange
Avenue. The remaining work consists of water line testing,
construction of the tie-ins, final paving, and punch list items.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
Funding for the overall Project comes from CIP P2513. The total
budget for CIP P2513, as approved for FY 2014, is $1,350,000. Total
expenditures, plus outstanding commitments and forecast, are
$1,279,858.00. See Attachment B for budget detail.
4
Based on a review of the financial budget, the Project Manager
anticipates that the budget for CIP P2513 will be sufficient to
support the Project.
Finance has determined that 100% of the funding is available from the
Replacement Fund.
STRATEGIC GOAL:
This Project supports the District’s Mission statement, “To provide
high value water and wastewater services to the customers of the Otay
Water District in a professional, effective, and efficient manner”
and the General Manager’s Vision, “A District that is at the
forefront in innovations to provide water services at affordable
rates, with a reputation for outstanding customer service.”
LEGAL IMPACT:
None.
DM:jf
P:\WORKING\CIP P2513 East Orange Ave I-805 Overcrossing\Staff Reports\BD 07-03-2013, Staff Report, Change Order No.
3\BD 07-03-2013, Staff Report, Change Order No 3 to Basile Construction, (DM).docx
Attachments: Attachment A – Committee Action
Attachment B – P2513 Budget Detail
Exhibit A – Location Map
Exhibit B – Change Order No. 3
Exhibit C – Utility Agreement No. 33601
ATTACHMENT A
SUBJECT/PROJECT:
P2513-001103
Approve Change Order No. 3 to the Contract with Basile
Construction, Inc. for the 12-Inch Potable Water Pipeline
in Orange Avenue, I-805 Crossing Project
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee (Committee)
reviewed this item at a meeting held on June 19, 2013 and the
following comments were made:
Staff requested that the Board approve Change Order No. 3 to the
existing contract with Basile Construction, Inc. (Basile) in the
amount of $19,289.50 for the 12-Inch Potable Water Pipeline in
Orange Avenue, I-805 Crossing Project.
Staff provided a background of the Project that was awarded to
Basile on January 8, 2013, in a contracted amount of $872,000.00. It
was indicated that since the award of the contract by the District
to Basile, two (2) contract change orders have been approved for
potholing and redesigning tie-in connections for the water line due
to utility conflicts.
Staff stated that Change Order No. 3 serves as a close-out change
order for the contract and is for a variety of items (See Exhibit B
for details). The table shown on page 3 of the staff report
summarizes the items and also accounts for the reallocation of
unused allowances and the application of original allowances.
It was noted that Change Order No. 3 also addresses contract time as
a result of the items included in the Change Order. An assessment of
the time impacts associated with each change is provided in Exhibit
B including the addition of 42 days associated with the utility
opening differing site condition and the reduction of 15 days
associated with the Project acceleration. In total, 27 days will be
added to the contract.
Change Order No. 3 results in a net increase to the contract in the
amount of $19,289.50 as shown on the summary table on page 3 of the
staff report. Caltrans has initiated Utility Agreement 33601
(Exhibit C) to compensate the District for 100 percent of the costs
associated with the Project acceleration which total $9,706.00. It
was noted that this reduces the actual value of Change Order No. 3
to $9,583.50.
Staff shared that Basile is nearing completion of the water line
construction in Orange Avenue. The remaining work consists of water
line testing, construction of the tie-ins, final paving, and punch
list items.
The Committee inquired about the difference between contract
allowances and budgeted amount. Staff stated that the reallocation
of contract allowances fund a majority of the items included in
Change Order No. 3. The remaining funds needed to support Change
Order No. 3 are available from the overall project budget.
It was noted that the major item included in Change Order No. 3 is
the Utility Opening Differing site condition (Bridge Realignment)
that totaled $38,000.
Upon completion of the discussion, the Committee supported
presentation to the full Board as a consent item.
ATTACHMENT B – Budget Detail
SUBJECT/PROJECT:
P2513-001103
Approve Change Order No. 3 to the Contract with Basile
Construction, Inc. for the 12-Inch Potable Water Pipeline
in Orange Avenue, I-805 Crossing Project
Date Updated: 5/29/2013
Budget
1,350,000
Planning
Standard Salaries 956 956 - 956
Total Planning 956 956 - 956
Design 001102
Construction Contracts 5,517 5,120 397 5,517 ADCO UNDERGROUND SERVICES LLC
Consultant Contracts 2,193 2,193 - 2,193 ALTA LAND SURVEYING INC
35,620 35,620 - 35,620 DARNELL & ASSOCIATES INC
79,412 79,412 - 79,412 LEE & RO INC
11,508 11,508 - 11,508 MTGL INC
4,578 4,578 - 4,578 UNITED STORM WATER INC
1,755 1,755 - 1,755 V & A CONSULTING ENGINEERS
Professional Legal Fees 950 950 - 950 STUTZ ARTIANO SHINOFF
Service Contracts 3,000 3,000 - 3,000 CITY OF CHULA VISTA
5,333 3,343 1,990 5,333 MAYER REPROGRAPHICS INC
3,450 3,450 - 3,450 PHOTO GEODETIC CORPORATION
81 81 - 81 SAN DIEGO DAILY TRANSCRIPT
474 474 - 474 US BANK CORPORATE PAYMENT
Standard Salaries 97,144 97,144 - 97,144
Total Design 251,013 248,627 2,387 251,013
Construction
Construction Contracts 872,000 501,286 370,714 872,000 BASILE CONSTRUCTION INC
19,290 - 19,290 19,290 CO 3 BASILE CONSTRUCTION INC
Consultant Contracts 56,220 35,550 20,670 56,220 VALLEY CONSTRUCTION MANAGEMENT
9,781 9,781 - 9,781 LEE & RO INC
Professional Legal Fees 304 304 - 304 STUTZ ARTIANO SHINOFF
Regulatory Agency Fees 6,501 6,501 - 6,501 CITY OF CHULA VISTA
5,000 - 5,000 5,000 OUTSIDE AGENCY FEE
Construction Reimbursement (9,706) - (9,706) (9,706) UTILITY AGREEMENT #33601
Standard Salaries 68,500 19,843 48,657 68,500 OWD STAFF
Total Construction 1,027,889 573,265 454,625 1,027,889
Grand Total 1,279,858 822,847 457,011 1,279,858
Vendor/Comments
Otay Water District
p2513-East Orange Avenue Bridge Crossing
Committed Expenditures
Outstanding
Commitment &
Forecast
Projected Final
Cost
STATE OF CALIFORNIA •DEPARTMENT OF TRANSPORTATION Page 1 of 4
UTILITY AGREEMENT
RW 13-5 (REV 12/2012)
DISTRICT
FEDERAL
N/A
FEDERAL
11
PARTICIPATION
PARTICIPATION
On the
COUNTY
SD
Project □
ROUTE
805
Yes [3 No
POST MILE
4.7-5.6
PROJECT ID
1100020051
OWNER'S FILE NUMBER
On the Utilities
CIP#2513
□Yes E
EA
2T1821
3 No
Owner Payee Data No.VC0000020910 or Form STD 204 is attached □
UTILITY AGREEMENT NO 33601 DATE
The State of California,acting by and through the Department of Transportation,hereinafter called "STATE,"proposes to
replace structure and construct DAR on I -805,in San Diego County in Chula Vista,from 0.4 mile south of east Palomar Street
overcrossing to 0.1 mile north ofNaples Street undercrossing
And
NAME:Otav Water District
ADDRESS:2554 Sweetwater Springs Blvd.Spring Valley.CA 91978
hereinafter called "OWNER,"owns and maintains a 10"and 12"potable water line running in Palomar Street within the limits of
STATE'S project which requires a water line to be kept in service for the length of the project therefore,a new water line will be
installed through Orange Ave Bridge while construction takes place on the Palomar Street bridge to accommodate STATE'S
project.
It is hereby mutually agreed that:
I.WORK TO BE DONE
In accordance with Notice to Owner No.33601 dated 05/16/2013,OWNER shall expedite installation of new water line in Orange
Ave Bridge to accommodate demolition of the Palomar Street Bridge.All work shall be performed substantially in accordance with
OWNER'S Plan No.CIP#2153 dated 11/05/2012 consisting of 25 sheets,a copy of which is on file in the District office ofthe
Department of Transportation at 4050 Taylor Street,San Diego,CA 92110.Deviations from the OWNER'S plan described above
initiated by either the STATE or the OWNER,shall be agreed upon by both parties hereto under a Revised Notice to Owner.Such
Revised Notices to Owner,approved by the STATE and agreed to/acknowledged by the OWNER,will constitute an approved revision
of the OWNER'S plan described above and are hereby made a part hereof.No work under said deviation shall commence prior to
written execution by the OWNER of the Revised Notice to Owner.Changes in the scope of the work will require an amendment to
this Agreement in addition to the revised Notice to Owner.
II.LIABILITY FOR WORK
This is a subsequent request to expedite relocation of facilities;therefore,relocation is at STATE expense.
III.PERFORMANCE OF WORK
OWNER agrees to perform the herein described work with its own forces or to cause the herein described work to be performed by
the OWNER'S contractor,employed by written contract on a continuing basis to perform work ofthis type,and to provide and furnish
all necessary labor,materials,tools,and equipment required therefore,and to prosecute said work diligently to completion.
UTILITY AGREEMENT (cont.)Page 2 of4
UTILITY AGREEMENT NO.33601
PERFORMANCE OF WORK (CONTINUED)
Pursuant to Public Works Case No.2001-059 determination by the California Department ofIndustrial Relations dated October 25,
2002,work performed by OWNER'S contractor is a public work under the definition of Labor Code Section 1720(a)and is therefore
subject to prevailing wage requirements.OWNER shall verify compliance with this requirement in the administration of its
contracts referenced above."
Use ofout-of-state personnel (or personnel requiring lodging and meal per diem expenses)will not be allowed without prior written
authorization by state's representative.Requests for such authorization must be contained in OWNER'S estimate of actual and
necessary relocation costs.Accounting Form FA 1301 is to be completed and submitted for all non-State personnel travel per diem.
OWNER shall include an explanation why local employee or contract labor is not considered adequate for the relocation work
proposed.Per diem expenses shall not exceed the per diem expense amounts allowed under the State's Department of Personnel
Administration travel expense guidelines.
IV.PAYMENT FOR WORK
The STATE shall pay its share of the actual and necessary cost ofthe herein described work within 45 days after receipt of five (5)
copies of OWNER'S itemized bill,signed by a responsible official ofOWNER'S organization and prepared on OWNER'S
letterhead,complied on the basis of the actual and necessary cost and expense.The OWNER shall maintain records ofthe actual
costs incurred and charged or allocated to the project in accordance with recognized accounting principles.The OWNER'S billing
cost to the state is $9,706.08.
It is understood and agreed that the STATE will not pay for any betterment or increase in capacity ofOWNER'S facilities in the
new location and that OWNER shall give credit to the STATE for the "used life"or accumulated depreciation ofthe replaced
facilities and for the salvage value of any materials or parts salvaged and retained or sold by OWNER.
Not more frequently than once a month,but at least quarterly,OWNER will prepare and submit progress bills for costs incurred not to
exceed OWNER'S recorded costs as of the billing date less estimated credits applicable to completed work.Payment ofprogress bills
not to exceed the amount of this Agreement may be made under the terms ofthis Agreement.Payment ofprogress bills which exceed
the amount ofthis Agreement may be made after receipt and approval by STATE of documentation supporting the cost increase and
after an Amendment to this Agreement has been executed by the parties to this Agreement.
The OWNER shall submit a final bill to the STATE within 360 days after the completion ofthe work described in Section I above.If
the STATE has not received a final bill within 360 days after notification ofcompletion of Owner's work described in Section I of this
Agreement,and STATE has delivered to OWNER fully executed Director's Deeds,Consents to Common Use or Joint Use
Agreements,ifrequired for OWNER'S facilities,STATE will provide written notification to OWNER of its intent to close its file
within 30 days and OWNER hereby acknowledges,to the extent allowed by law,that all remaining costs will be deemed to have been
abandoned.Ifthe STATE processes a final bill for payment more than 360 days after notification of completion of OWNER'S work,
payment ofthe late bill may be subject to allocation and/or approval by the California Transportation Commission.
The final billing shall be in the form of an itemized statement ofthe total costs charged to the project,less the credits provided for in
this Agreement,and less any amounts covered by progress billings.However,the STATE shall not pay final bills which exceed the
estimated cost of this Agreement without documentation ofthe reason for the increase of said cost from the OWNER and approval of
documentation by STATE.Except,if the final bill exceeds the OWNER'S estimated costs solely as the result of a revised Notice to
Owner as provided for in Section I,a copy of said revised Notice to Owner shall suffice as documentation.In either case,payment of
the amount over the estimated cost ofthis Agreement may be subject to allocation and/or approval by the California Transportation
Commission.
In any event ifthe final bill exceeds 125%ofthe estimated cost ofthis Agreement,an Amended Agreement shall be executed by the
parties to this Agreement prior to the payment ofthe OWNER'S final bill.Any and all increases in costs that are the direct result of
deviations from the work described in Section I ofthis Agreement,shall have the prior concurrence of STATE.
Detailed records from which the billing is compiled shall be retained by the OWNER for a period of three years from the date ofthe
final payment and will be available for audit by State and or Federal auditors.OWNER agrees to comply with Contract Cost
UTILITY AGREEMENT (cont.)page 3 of4
I UTILITY AGREEMENT NO.33601
Principles and procedures as set forth in 48 CFR,Chapter 1,Part 31,et seq.,23 CFR,Chapter 1,Part 645 and/orl8 CFR,Chapter 1,
Part 101,201,et al.If a subsequent State and/or Federal audit determines payments to be unallowable,OWNER agrees to reimburse
STATE upon receipt of STATE billing.
V.GENERAL CONDITIONS
All costs accrued by OWNER as a result of STATE'S request of May 16,2011 to review,study and/or prepare relocation plans
and estimates for the project associated with this Agreement may be billed pursuant to the terms and conditions of this Agreement.
If STATE'S project which precipitated this Agreement is canceled or modified so as to eliminate the necessity of work by
OWNER,STATE will notify OWNER in writing and STATE reserves the right to terminate this Agreement by Amendment.The
Amendment shall provide mutually acceptable terms and conditions for terminating the Agreement.
It is understood that said highway is a Federal aid highway and accordingly,23 CFR,Chapter 1,Part 645 and 23 U.S.C.,section
313 as applicable,is hereby incorporated into this Agreement.
The Buy America requirements are further specified in Moving Ahead for progress in the 21st Century (MAP-21),section 1518.
Owner hereby certifies that all manufacturing processed for these steel and iron material,including the application of coating
(unless granted a waiver pursuant to 23 CFR 635.410),have occurred in the United States.
OWNER shall submit a Notice ofCompletion to the STATE within 30 days ofthe completion of the work described herein
All obligations of STATE under the terms ofthis Agreement are subject to the passage of the annual Budget Act by the State
Legislature and the allocation ofthose funds by the California Transportation Commission.
It is understood that said highway is a Federal aid highway and accordingly,23 CFR,Chapter 1,Part 645 and 23 USC,section 313
as applicable,is hereby incorporated into this Agreement by reference;provided,however,that the provisions of any agreements
entered into between the STATE and the OWNER pursuant to State law for apportioning the obligations and costs to be borne by
each,or the use of accounting procedures prescribed by the applicable Federal or State regulatory body and approved by the
Federal Highway Administration,shall govern in lieu ofthe requirements of said 23 CFR 645.
UTILITY AGREEMENT (cont.)Page 4 of4
UTILITY AGREEMENT NO.33601
IN WITNESS WHEREOF,the above parties have executed this Agreement the day and year above written.
STATE:DEPARTMENT OF TRANSPORTATION OWNER:OTAY WATER DISTRICT
By
Name GXE(&GUTIERREZ,
Title Utility Relocation Branch
Right of Way Division
APPROVAL RECOMMENDED:
Date
By
Name
Title
Date
i ■»»QBy
Name Carol Vu
Title Utility Coordinator
Right ofWay
Date
By
Name
Title
Date
THIS AGREEMENT SHALL NOT BE EXECUTED BY THE STATE OF CALIFORNIA -DEPARTMENT OF
TRANSPORTATION UNTIL FUNDS ARE CERTIFIED.
DO NOT WRITE BELOW -FOR ACCOUNTING PURPOSES ONLY
PLANNING AND MANAGEMENT TO COMPLETE UNSHADED FIELDS:
T
CODE
DOCUMENT
NUMBER
UA&23O0'
UA
SUF
FIX DIST
/(
UNIT
CHG
DIST
/(
PROJECT
ID
(■IttMZDCS)
PHASE
SPECIAL
DESIGNATION FFY
13
UTILITY COMPLETES:
FA
OB.I
CODE
DOLLAR
AMOUNT
PROJECT ID FUNDING VERIFIED:
Print>Joyce Wiggs
R/W Planning and Management
Date
REVIEW/REQUEST FUNDING:
Sign>C>LX_4£lJI.OjI
Print>Carol Vu
Utility Coordinator
Date
THE ESTIMATED COST TO STATE FOR ITS SHARE OF THE ABOVE DESCRIBED WORK IS $9.706.08 .
CERTIFICATION OF FUNDS
I hereby certify upon my own personal knowledge that budgeted funds are
available for the period and purpose ofthe expenditure shown here.
Planning and Management
ITEM CHAP STAT FY
Date
AMOUNT
Distribution:2 originals to R/W Accounting
1 original to Utility Owner
1 original to Utility File
FUND TYPE
Design Funds
Construction Funds
RW Funds
PROJECT ID
2T1829
AMOUNT
$
$
$9,706.08
Vendor/Customer:
Address ID:
VC0000020910
AD001
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: July 3, 2013
SUBMITTED BY:
Jeff Marchioro
Senior Civil Engineer
Bob Kennedy
Engineering Manager
PROJECT: P2453-
001102
DIV. NO. 2
APPROVED BY:
Rod Posada, Chief, Engineering
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: Approve Utility Agreement No. 33592 with Caltrans for SR-11,
Sequence I Utility Relocations Project
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District (District) Board of Directors (Board)
authorize the General Manager to execute Utility Agreement No. 33592
with Caltrans for SR-11, Sequence I Utility Relocations Project (see
attached Exhibits A and B for Project location, and Exhibit C for
Utility Agreement).
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To obtain Board authorization for the General Manager to execute
Utility Agreement No. 33592 with Caltrans for relocation of District
facilities in conflict with SR-11, Sequence I Utility Relocations
Project.
AGENDA ITEM 6b
2
ANALYSIS:
Caltrans is currently in the process of completing land acquisition
and design for the SR-11 freeway in Otay Mesa. The first phase of
the freeway (Sequence I) starts at the SR 905 freeway and ends at
Enrico Fermi Drive. Part of this process is to relocate existing
utilities that conflict with this work. The District’s existing
pipelines in Sanyo Avenue or utility easements will need to be
relocated to accommodate the new freeway.
Responding to a request from Caltrans, staff submitted claim letters
dated April 10, 2012 and March 7, 2013 for utility conflicts. The
District has prior and superior rights at each crossing. The
District received a Notice to Owner directing the District to
relocate conflicting utilities on March 5, 2013.
The scope of work for the attached Utility Agreement includes the
following work:
Relocate approximately 760 linear feet of existing 10-inch ACP
potable water distribution main currently located within a
District permanent easement on private property between Sanyo
Avenue and Dornoch Court. The relocation is necessary since the
existing pipeline runs parallel with and directly underneath the
future freeway. The existing pipeline will be replaced by
approximately 585 linear feet of 10-inch PVC distribution main
located in a future utility easement on private property
immediately north of the future SR-11 right-of-way between
Dornoch Court and existing 18-inch steel-cylinder-rod-wrapped
(SCRW) potable water transmission main east of Dornoch Court.
Lower approximately 355 linear feet of existing 18-inch SCRW
potable water transmission main currently located within a
District owned utility easement on private property east of
Dornoch Court. The relocation is necessary to lower the
existing transmission main under the future freeway retaining
wall footings. The existing pipeline will be replaced by 355
linear feet of 18-inch CML&C steel pipe within the identical
horizontal alignment, but at a lower location. The replaced
transmission main will be installed inside a 32-inch steel
casing running perpendicular to the future SR-11 right-of-way.
3
Remove and replace approximately 40 linear feet of existing 12-
inch ACP potable water distribution main located in Sanyo
Avenue. Removal and replacement of the water main is necessary
to accommodate Caltrans’ future open trench construction of a
large diameter (84-inch) storm drain crossing Sanyo Avenue. The
existing pipeline will be replaced by approximately 40 linear
feet of 12-inch PVC distribution main running perpendicular to
the future SR-11 right-of-way.
The installation of the pipelines, including the tie-ins, will not
adversely affect any District customers. Staff will coordinate the
necessary short-term shutdowns to minimize the impact on system
operations.
The calculated depreciation cost for all existing pipelines and
appurtenances is $38,479 ($27,198 for the 10-inch ACP, plus $7,201
for the 18-inch SCRW, plus $4,080 for the 12-inch ACP, respectively).
The estimated construction cost for the new pipelines and
appurtenances is $707,500. Additionally, the total planning, design,
inspection, and closeout costs incurred by the District for this
relocation are estimated to be $292,500. The total cost that
Caltrans will reimburse the District at completion of the
construction work is estimated at $961,521. Consistent with the
conditions of all other utility agreements between the District and
Caltrans, actual costs may not exceed 125 percent of the estimated
cost in the agreement without a revised amendment being executed.
The District’s relocations will be constructed through a construction
contract administered by the District separately from Caltrans
freeway construction project.
Staff anticipates that the above-described relocations will be
advertised for bid and awarded for construction in approximately the
fourth quarter of Fiscal Year 2014. The District’s As-Needed
Engineering Design Consultant (Atkins) designed the bid documents,
which Caltrans approved on February 25, 2013.
A future Utility Agreement will be presented to the Board for SR-11,
Sequence II which will continue future SR-11 alignment from Enrico
Fermi Drive to a future Port of Entry facility and the U.S. border
with Mexico.
4
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
The total budget for CIP P2453, as approved in the FY 2014 budget, is
$2,250,000. Total expenditures, plus outstanding commitments and
forecast, including this agreement, are $38,479. See Attachment B
for budget detail.
Based on a review of the financial budget, the Project Manager
anticipates that the budget for CIP P2453 is sufficient to support
the Project.
Finance has determined that 100% of the funding is available from the
Replacement Fund for CIP P2453.
STRATEGIC GOAL:
This Project supports the District’s Mission statement, “To provide
high value water and wastewater services to the customers of the Otay
Water District in a professional, effective, and efficient manner”
and the General Manager’s Vision, “A District that is at the
forefront in innovations to provide water services at affordable
rates, with a reputation for outstanding customer service.”
LEGAL IMPACT:
None.
JM/BK:jf
P:\WORKING\CIP P2453 SR-11 Utility Relocations\Staff Reports\BD 07-03-13, Staff Report, SR-11 Utility Agreement No.
33592 with Caltrans for SR-11, Sequence I Utility Relocations Project.docx
Attachments: Attachment A – Committee Action
Attachment B – Budget Detail
Exhibit A – Location Map
Exhibit B – Location Detail Map
Exhibit C – Caltrans signed Utility Agreement
ATTACHMENT A
SUBJECT/PROJECT:
P2453-001102 Approve Utility Agreement No. 33592 with Caltrans for SR-
11, Sequence I Utility Relocations Project
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee
(Committee) reviewed this item at a meeting held on June 19, 2013 and
the following comments were made:
Staff is requesting that the Board authorize the General Manager to
execute Utility Agreement No. 33592 with Caltrans for SR-11,
Sequence I Utility Relocations Project (Project).
Staff provided a background of the Project that is scheduled to
commence summer 2014. Caltrans’ contractor will start by installing
deep storm drain and sewer utilities, then the District will
relocate its waterlines, then Caltrans will build the freeway. It
was noted that the District’s relocations will be constructed
through a construction contract administered by the District
separately from Caltrans freeway construction project. District
relocations are scheduled for winter 2014.
It was noted that Sequence II, starting at Enrico Firmi to the
border, is tentatively scheduled for construction in the 2015
timeframe. A future Utility Agreement will be presented to the
Board for Sequence II improvements.
Staff provided the Project’s scope of work, which is outlined on
pages 2 and 3 of the staff report.
Staff indicated that the hydraulic analysis concluded that fire
flow requirement will be met during construction.
It was noted that Caltrans will pay for all relocations minus
depreciation. The total project cost of all relocations is $1M,
and the depreciation was estimated at $38,479 which is equivalent
to the net dollar amount shown on Attachment B of the staff report.
In response to a question by the Committee, staff stated that
whenever other agencies are performing construction work that may
impact the District’s pipelines, it is a requirement of the
District to inspect its pipelines to ensure that they have not been
damaged and are embedded properly. The inspection requirement also
helps maintain as built information of areas that have been
disturbed by construction work from other agencies.
The following table was provided after the Committee meeting in
response to the Committee’s inquiry about the age of existing
District pipelines that will be affected by Caltrans’ project.
Pipeline to be relocated: Installation Year
10-inch and 12-inch ACP potable water
distribution mains
1986
18-inch SCRW potable water transmission main 1963
Upon completion of the discussion, the Committee supported
presentation to the full Board as a consent item.
ATTACHMENT B – Budget Detail
SUBJECT/PROJECT:
P2453-001102 Approve Utility Agreement No. 33592 with Caltrans for SR-
11, Sequence I Utility Relocations Project
Date Updated: 5/21/2013
Budget
2,250,000
Planning
Standard Salaries 10,205 10,205 - 10,205 STAFF LABOR
Total Planning 10,205 10,205 - 10,205
Design 001102
Standard Salaries 70,449 60,449 10,000 70,449 STAFF LABOR
Consultant Contracts 75,450 56,226 19,224 75,450 ATKINS
2,763 2,763 - 2,763 V & A CONSULTING ENGINEERS
970 970 - 970 ALTA LAND SURVEYING INC
3,697 3,697 - 3,697 NARASIMHAN CONSULTING SERVICES
2,561 2,561 - 2,561 CPM PARTNERS INC
Service Contracts 2,765 - 2,765 2,765 UNDERGROUND SOLUTIONS INC
1,382 1,382 - 1,382 US BANK
1,382 1,382 - 1,382 US BANK CORPORATE PAYMENT
10,000 - 10,000 10,000 BIDDING AND DOCUMENT DISTRIBUTION
Total Design 171,419 129,430 41,988 171,419
Construction
Standard Salaries 81,814 11,814 70,000 81,814 STAFF LABOR
Consultant Contracts 5,000 - 5,000 5,000 ATKINS CONSTRUCTION SUPPORT
707,500 - 707,500 707,500 CONSTRUCTION COST EST
24,063 - 24,063 24,063 CLOSEOUT
(961,521) - (961,521) (961,521) CALTRANS REIMBURSEMENT
Total Construction (143,144) 11,814 (154,958) (143,144)
Grand Total 38,479 151,449 (112,970) 38,479
Vendor/Comments
Otay Water District
p2453-SR-11 Utility Relocations
Committed Expenditures
Outstanding
Commitment &
Forecast
Projected Final
Cost
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EXHIBIT A CIP P2453F
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OTAY WATER DISTRICTSR-11 UTILITY RELOCATIONS - SEQUENCE 1LOCATION DETAIL MAP
EXHIBIT B CIP P2453F
0 15075Feet
NOTES1. PROPOSED 10" PVC DISTRIBUTION MAIN TO REPLACE EXISTING 10" ACP DISTRIBUTIONMAIN TO BE REMOVED.2. PROPOSED 18" STEEL TRANSMISSION MAIN AND 32" STEEL CASING TO REPLACE 18"STEEL TRANSMISSION MAIN AT LOWER ELEVATION.3. EXISTING 12" ACP TO BE REMOVED AND REPLACED TO ACCOMODATE STORM DRAINCONSTRUCTION.
Legend
Proposed SR-11
Proposed Waterline
Existing Waterline to be Removed
Existing Waterline to Remain
Exhibit C
Exhibit C
Exhibit C
Exhibit C
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: July 3, 2013
SUBMITTED BY: Lisa Coburn-Boyd
Environmental Specialist
Bob Kennedy
Engineering Manager
CIP./G.F. NO: D0894-
090152
DIV. NO. 1
APPROVED BY:
Rod Posada, Chief, Engineering
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: Approval of Water Supply Assessment and Verification Report
(May 2013) for the Otay Ranch Planning Area 12 Freeway
Commercial Project
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District (District) Board of Directors
(Board) approve the Water Supply Assessment Report (WSA&V
Report) dated May 2013 for the Otay Ranch Planning Area 12
Freeway Commercial Project, as required by Senate Bills 610 and
221 (see Exhibit A for Project location).
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To obtain Board approval of the May 2013 WSA&V Report for the
Otay Ranch Planning Area 12 Freeway Commercial Project, as
required by Senate Bill 610 and Senate Bill 221 (SB 610 and SB
221).
ANALYSIS:
The City of Chula Vista submitted a request for a WSA&V report
to the District pursuant to SB 610 and SB 221. SB 610 and
SB 221 require that, upon the request of the City or County, a
water purveyor, such as the District, prepare a water supply
assessment and verification report to be included in the
California Environmental Quality Act (CEQA) environmental
AGENDA ITEM 6c
2
documentation. This request was received by the District on
May 31, 2013.
SB 610 requires a city or county to evaluate whether water
supplies will be sufficient to meet the projected water demand
for certain “projects” that are otherwise subject to the
requirement of the CEQA. SB 610 provides its own definition of
“project” in Water Code Section 10912.
SB 221 requires affirmative written verification from the water
purveyor of the public water system that sufficient water
supplies are planned to be available for certain residential
subdivisions of property. The requirements of SB 610 and SB 221
are addressed by the May 2013 WSA&V Report for this Project.
The WSA&V Report was prepared by the District in consultation
with Dexter Wilson Engineering, Inc., the San Diego County Water
Authority (Water Authority), and the City of Chula Vista (City).
Prior to transmittal to the City, the WSA&V Report must be
approved by the Board of Directors. An additional explanation
of the intent of SB 610 and SB 221 is provided in Exhibit C,
Otay Ranch Planning Area 12 Freeway Commercial Project WSA&V
Report is provided as Exhibit D.
For the Otay Ranch Planning Area 12 Freeway Commercial Project,
the City is the responsible land use agency that requested the
SB 610 and SB 221 water supply assessment and verification
report from the District. The request for the WSA&V Reports, in
compliance with SB 610 and SB 221 requirements, was made by the
City because the Project meets or exceeds one or both of the
following SB 610 and SB 221 criteria:
A proposed residential development of more than 500
dwelling units.
A proposed commercial office building employing more than
1,000 persons or having more than 250,000 square feet of
floor space.
A mixed-use project that includes one or more of the land
uses specified in SB 610.
A project that would demand an amount of water equivalent
to, or greater than, the amount of water required by a 500
dwelling unit project.
3
The Otay Ranch Planning Area 12 Freeway Commercial Project is
located along the southern boundary of Olympic Parkway and
includes development on both sides of Town Center Drive.
Baldwin and Sons development concept for the approximately 34.5
acre site includes multi-family residential, hotel, commercial,
and a park site. The Project site is planned for 448
residential units, 257 hotel rooms, and up to 115,000 square
feet of commercial development. The current entitlement on the
property was for the entire 34.5 acres to be commercial with up
to 347,000 square feet of building space.
The expected potable water demands for the Planning Area 12
Freeway Commercial Project are 0.167 million gallons per day
(MGD) or about 187 acre feet per year (AFY). This is 127 AFY
higher than the demand estimate in the District’s 2010 Water
Resources Master Plan Update and the District’s 2010 UWMP. The
projected recycled water demand for the proposed Project is
approximately 0.025 MGD or about 28.5 AFY, representing about
13% of total Project water demand.
The 127 AFY increase is accounted for through the Accelerated
Forecasted Growth demand increment of the Water Authority’s 2010
UWMP. As documented in the Water Authority’s 2010 UWMP, the
Water Authority is planning to meet future and existing demands
which include the demand increment associated with the
accelerated forecasted growth. The Water Authority will assist
its member agencies in tracking the environmental documents
provided by the agencies that include water supply assessments
and verifications reports that utilize the accelerated
forecasted growth demand increment to demonstrate supplies for
the development. In addition, the next update of the demand
forecast for the Water Authority’s 2015 UWMP will be based on
SANDAG’s most recently updated forecast, which will include the
Project. Therefore, based on the findings from the District’s
2010 UWMP and the Water Authority’s 2010 UWMP, this Project will
result in no unanticipated demands.
The request for compliance with SB 221 requirements was made by
the City because the Project will exceed the SB 221 criteria of
a proposed residential development subdivision of more than 500
dwelling units.
Pursuant to SB 610 and SB 221, the WSA&V Report incorporates by
reference the current Urban Water Management Plans and other
water resources planning documents of the District, the Water
Authority, and the Metropolitan Water District of Southern
California (Metropolitan). The District prepared the WSA&V
4
Report in consultation with Dexter Wilson Engineering, Inc., the
Water Authority, and the City, which demonstrates and documents
that sufficient water supplies are planned for and are intended
to be made available over a 20-year planning horizon under
normal supply conditions, in single and multiple-dry years to
meet the projected demand of the Otay Ranch Planning Area 12
Freeway Commercial Project and other planned development
projects within the District.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
The District has been reimbursed $8,000 for all costs associated
with the preparation of the Otay Ranch Planning Area 12 Freeway
Commercial Project WSA&V Report. The reimbursement was
accomplished via an $8,000 deposit the Project proponents placed
with the District on March 13, 2013.
STRATEGIC GOAL:
The preparation and approval of the WSA&V Report for the Otay
Ranch Planning Area 12 Freeway Commercial Project supports the
District’s Mission statement, "To provide high value water and
wastewater services to the customers of the Otay Water District
in a professional, effective, and efficient manner” and the
District’s Strategic Goal 3.1.1, “Actively manage water supply
and demand.”
LEGAL IMPACT:
Approval of a WSA&V Report for the Otay Ranch Planning Area 12
Freeway Commercial Project in form and content satisfactory to
the Board of Directors would allow the District to comply with
the requirements of Senate Bills 610 and 221.
LC-B/BK:jf
P:\WORKING\WO D0894 Freeway Commercial\Staff Report\BD 07-03-13, Staff Report, PA12 Freeway Commercial WSA-V,
(LCB-BK-RR).doc
Attachments: Attachment A – Committee Action
Exhibit A – Location Map
Exhibit B – Explanation of the Intent of SB 610 &
SB 221
Exhibit C – Otay Ranch Planning Area 12 Freeway
Commercial Project WSA&V Report
Exhibit D – Presentation
ATTACHMENT A
SUBJECT/PROJECT:
D0894-090152
Approval of Water Supply Assessment and Verification
Report (May 2013) for the Otay Ranch Planning Area 12
Freeway Commercial Project
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee
(Committee) reviewed this item at a meeting held on June 19,
2013 and the following comments were made:
Staff requested that the Board approve the Water Supply
Assessment Report (WSA&V Report) dated May 2013 for the
Otay Ranch Planning Area 12 Freeway Commercial Project, as
required by Senate Bills 610 and 221.
Staff indicated that on May 31, 2013, the District received
a request from the City of San Diego to prepare the WSA and
Verification Report for the Otay Ranch Planning Area 12
Freeway Commercial Project. SB 610 requires that the
District honor the City’s request, and that board approval
for the submittal of the WSA&V Report to the City of San
Diego is required. Exhibit A provides the location of the
project site.
Plans for the Project are provided on page 3 of the staff
report. Staff indicated that the water demand for the
Project is approximately 187 AFY for potable water and 28.5
AFY for recycled water.
It was noted that the demand is 127 AFY higher than the
demand estimate in the District’s 2010 Urban Water
Management Plan (UWMP). However, the increase is accounted
for through the Accelerated Forecasted Growth demand
increment of the Water Authority’s 2010 UWMP. Based on the
findings from the District’s and the Water Authority’s 2010
UWMPs, this Project will result in no unanticipated
demands.
A PowerPoint presentation was provided to the Committee
that included the following:
o Background of Senate Bills 610 and 221, which became
effective on January 1, 2002, and its intent and how it
relates to the WSA&V Report
o Land use plan and description for the Otay Ranch PA12
Freeway Commercial Project
o Potable demand estimates for the Otay Ranch PA12 Freeway
Commercial Project
o Otay Water District’s, San Diego County Water
Authority’s, and Metropolitan Water District’s Urban
Water Management Plan
It was noted that the Otay Ranch PA12 Freeway Commercial
Project’s WSA&V Report includes (4) four other Otay Water
District Planned Local Water Supply Projects:
o Rancho Del Rey Groundwater Well (500 AFY)
o Rosarito Ocean Desalination Project (20,000-50,000 AFY)
o Otay Mesa Lot 7 Groundwater Well (300 AFY)
o Otay Mesa Recycled Water Supply Link Project (800 AFY)
A slide was presented that showed the Water Authority
Supplies, which included IID Water Transfer, ACC and CC
Lining, and the Carlsbad Desalination project.
Staff indicated that the status of the current water supply
situation is documented in the WSA&V Report with the intent
that the water agencies plan to develop sufficient water
supplies to meet demands. Staff believes that the Board has
met the intent of SB 610 and 221 statutes in that Land use
agencies and water suppliers have demonstrated strong
linkage. The Otay Ranch PA12 Freeway Commercial Project
WSA&V Report clearly documents the current water supply
situation. Staff believes that based on existing
documentation, the WSA&V Report demonstrates and documents
that sufficient water supplies are planned for and are
intended to be acquired and also identifies the actions
necessary to develop the supplies for a 20-year planning
horizon.
The Committee commented that the Rancho Del Rey Groundwater
Well Project is on hold and inquired if it should be
included in the Otay Water District’s Planned Local Water
Supply Projects report. Staff stated yes because the
Project is a resource that is available if needed.
In response to a question by the Committee, staff stated
that the Millenia Annexation Project is near the vicinity
of the Otay Ranch Planning Area 12 Freeway Commercial
Project.
Following the discussion, the Committee supported staffs’
recommendation and presentation to the full board as a consent
item.
EXHIBIT B
Background Information
The Otay Water District (District) prepared the May 2013 Water Supply Assessment and
Verification (WSA&V) Report for the Otay Ranch Planning Area 12 Freeway
Commercial Project at the request of the City of Chula Vista (City). The City’s WSA&V
request letter dated May 31, 2013 was received by the District on May 31, 2013 so the
90-day deadline for the District to provide the Board an approved WSA&V Report to the
City ends August 19, 2013.
The Otay Ranch Planning Area 12 Freeway Commercial Project is located within the
jurisdictions of the District, the San Diego County Water Authority (Water Authority), and
the Metropolitan Water District of Southern California (MWD). See Exhibit A for Project
location. To obtain permanent imported water supply service, land areas are required
to be within the jurisdictions of the District, Water Authority, and MWD.
The May 2013 WSA&V Report for the Otay Ranch Planning Area 12 Freeway
Commercial Project has been prepared by the District in consultation with Dexter Wilson
Engineering, Inc., the Water Authority, and the City, pursuant to Public Resources Code
Section 21151.9 and California Water Code Sections 10631, 10656, 10910, 10911,
10912, and 10915 referred to as Senate Bill (SB) 610 and Government Code Sections
65867.5, 66455.3, and 66473.7 referred to as SB 221. SB 610 and SB 221 amended
state law, effective January 1, 2002, intending to improve the link between information
on water supply availability and certain land use decisions made by cities and counties.
SB 610 requires that the water purveyor of the public water system prepare a water
supply assessment to be included in the California Environmental Quality Act (CEQA)
environmental documentation and approval process of certain proposed projects. SB
221 requires affirmative written verification from the water purveyor of the public water
system that sufficient water supplies are to be available for certain residential
subdivision of property. The requirements of SB 610 and SB 221are addressed in the
May 2013 WSA&V Report for the Otay Ranch Planning Area 12 Freeway Commercial
Project.
The expected potable water demands for the Planning Area 12 Freeway Commercial
Project are 0.167 million gallons per day (mgd) or about 187 acre feet per year (AFY).
This is 127 AFY higher than the demand estimate in the District’s 2010 Water
Resources Master Plan Update and District’s 2010 UWMP. The projected recycled
water demand for the proposed Project is approximately 0.025 mgd or about 28.5 AFY,
representing about 13% of total Project water demand.
The 127 AFY increase in demand is accounted for through the Accelerated Forecasted
Growth demand increment of the Water Authority’s 2010 UWMP. As documented in the
Water Authority’s 2010 UWMP, the Water Authority is planning to meet future and
existing demands which include the demand increment associated with the accelerated
forecasted growth. The Water Authority will assist its member agencies in tracking the
environmental documents provided by the agencies that include water supply
assessments and verifications reports that utilize the accelerated forecasted growth
demand increment to demonstrate supplies for the development. In addition, the next
update of the demand forecast for the Water Authority’s 2015 UWMP will be based on
SANDAG’s most recently updated forecast, which will include the Project. Therefore,
based on the findings from the Otay WD’s 2010 UWMP and the Water Authority’s 2010
UWMP, this Project will result in no unanticipated demands.
The District currently depends on the Water Authority and the MWD for all of its potable
water supplies and regional water resource planning. The District’s 2010 Urban Water
Management Plan (UWMP) relies heavily on the UWMP’s and Integrated Water
Resources Plans (IRPs) of the Water Authority and MWD for documentation of supplies
available to meet projected demands. These plans are developed to manage the
uncertainties and variability of multiple supply sources and demands over the long-term
through preferred water resources strategy adoption and resource development target
approvals for implementation.
MWD in October 2010 approved the update of their Integrated Water Resources Plan
(IRP). The 2010 IRP Update describes an adaptive management approach to mitigate
against future water supply uncertainty. The new uncertainties that are significantly
affecting California’s water resources include:
The Federal Court ruling on previous operational limits on Sacramento-San
Joaquin Delta to protect the Delta species. Water agencies are still trying to
determine what effect the ruling will have on State Water Project (SWP)
deliveries. Actual supply curtailments for MWD are contingent upon fish
distribution, behavioral patterns, weather, Delta flow conditions, and how water
supply reductions are divided between state and federal projects.
Periodic extended drought conditions.
These uncertainties have rightly caused concern among Southern California water
supply agencies regarding the validity of the current water supply documentation.
MWD is currently involved in several proceedings concerning Delta operations to
evaluate and address environmental concerns. In addition, at the State level, the Delta
Vision and Bay-Delta Conservation Plan processes are defining long-term solutions for
the Delta.
The SWP represents approximately 9% of MWD’s 2025 Dry Resources Mix with the
supply buffer included. A 22% cutback in SWP supply represents an overall 2% (22%
of 9% is 2%) cutback in MWD supplies in 2025. Neither the Water Authority nor MWD
has stated that there is insufficient water for future planning in Southern California.
Each agency is in the process of reassessing and reallocating their water resources.
Under preferential rights, MWD can allocate water without regard to historic water
purchases or dependence on MWD. Therefore, the Water Authority and its member
agencies are taking measures to reduce dependence on MWD through development of
additional supplies and a water supply portfolio that would not be jeopardized by a
preferential rights allocation.
As calculated by MWD (December 11, 2012), the Water Authority’s current preferential
right is 17.22% of MWD’s supply, while the Water Authority accounted for approximately
25% of MWD’s total revenue. So MWD could theoretically cut back the Water
Authority’s supply and theoretically, the Water Authority should have alternative water
supply sources to make up for the difference. In the Water Authority’s 2010 UWMP,
they had already planned to reduce reliance on MWD supplies. This reduction is
planned to be achieved through diversification of their water supply portfolio.
The Water Authority’s Drought Management Plan (May 2006) provides the Water
Authority and its member agencies with a series of potential actions to engage when
faced with a shortage of imported water supplies due to prolonged drought conditions.
Such actions help avoid or minimize impacts of shortages and ensure an equitable
allocation of supplies throughout the San Diego County region.
The Otay Water District Board of Directors could acknowledge the ever-present
challenge of balancing water supply with demand and the inherent need to possess a
flexible and adaptable water supply implementation strategy that can be relied upon
during normal and dry weather conditions. The responsible regional water supply
agencies have and will continue to adapt their resource plans and strategies to meet
climatological, environmental, and legal challenges so that they may continue to provide
water supplies to their service areas. The regional water suppliers (i.e., the Water
Authority and MWD), along with the District, fully intend to maintain sufficient reliable
supplies through the 20-year planning horizon under normal, single, and multiple dry
year conditions to meet projected demand of the Otay Ranch Planning Area 12
Freeway Commercial Project, along with existing and other planned development
projects within the District’s service area.
If the regional water suppliers determine additional water supplies will be required, or in
this case, that water supply portfolios need to be reassessed and redistributed with the
intent to serve the existing and future water needs throughout Southern California, the
agencies must indicate the status or stage of development of actions identified in the
plans they provide. MWD’s 2010 IRP update will then cause the Water Authority to
update its IRP, which will then provide the District with the necessary water supply
documentation. Identification of a potential future action in such plans does not by itself
indicate that a decision to approve or to proceed with the action has been made. The
District’s Board approval of the Otay Ranch Planning Area 12 Freeway Commercial
Project WSA&V Report does not in any way guarantee water supply to the Project.
Alternatively, if the WSA&V Report is written to state that water supply is or will be
unavailable; the District must include, in the assessment, a plan to acquire additional
water supplies. At this time, the District should not state there is insufficient water
supply.
So the best the District can do right now is to state the current water supply situation
clearly, indicating intent to provide supply through reassessment and reallocation by the
regional, as well as, the local water suppliers. In doing so, it is believed that the Board
has met the intent of the SB 610 statute, that the land use agencies and the water
agencies are coordinating their efforts in planning water supplies for new development.
With District Board approval of the Otay Ranch Planning Area 12 Freeway Commercial
Project WSA&V Report, the Otay Ranch Planning Area 12 Freeway Commercial Project
proponents can proceed with the draft environmental documentation required for the
CEQA review process. The water supply issues will be addressed in these
environmental documents, consistent with the WSA&V Report.
The District, as well as others, can comment on the draft EIR with recommendations
that water conservation measures and actions be employed on the Otay Ranch
Planning Area 12 Freeway Commercial Project.
Some recent actions regarding water supply assessments and verification reports by
Otay Water District are as follows:
The Otay Water District Board approved in July 2007 the Eastern Urban Center
Water Supply and Assessment Report.
The Board approved the Judd Company Otay Crossings Commerce Park water
supply assessment report on December 5, 2007.
The Board approved the Otay Ranch L.P. Otay Ranch Preserve and Resort
Project Water Supply Assessment and Verification Report on February 4, 2009.
The Board approved water supply assessment and verification reports for the
City of Chula Vista Village 8 West Sectional Plan Area and Village 9 Sectional
Plan Are on January 5, 2011.
The Board approved the water supply assessment report for the San Diego-
Tijuana Cross Border Facility on February 2, 2011.
The Board approved the water supply assessment for the County of San Diego
Rabago Technology Park on April 6, 2011.
The Board approved the water supply assessment report for the Pio Pico Energy
Center Project on October 5, 2011.
The Board approved the water supply assessment report for the Hawano Project
on March 7, 2012.
The Board approved the water supply assessment reports for the Sunroad Otay
Plaza and Otay Tech Center Projects on March 6, 2013.
Water supplies necessary to serve the demands of the proposed Otay Ranch Planning
Area 12 Freeway Commercial Project, along with existing and other projected future
users, as well as the actions necessary to develop these supplies, have been identified
in the water supply planning documents of the District, the Water Authority, and MWD.
The WSA&V Report includes, among other information, an identification of existing
water supply entitlements, water rights, water service contracts, or agreements relevant
to the identified water supply needs for the proposed Otay Ranch Planning Area 12
Freeway Commercial Project. The WSA&V Report demonstrates and documents that
sufficient water supplies are planned and are intended to be available over a 20-year
planning horizon, under normal conditions and in single and multiple dry years, to meet
the projected demand of the proposed Otay Ranch Planning Area 12 Freeway
Commercial Project and the existing and other planned development projects within the
District.
Accordingly, after approval of a WSA&V Report for the Otay Ranch Planning Area 12
Freeway Commercial Project by the District's Board of Directors, the WSA&V Report
may be used to comply with the requirements of the legislation enacted by Senate Bills
610 and 221 as follows:
Senate Bill (SB) 610 Water Supply Assessment: The District's Board of Directors
approved WSA&V Report may be incorporated into the California Environmental
Quality Act (CEQA) compliance process for the Otay Ranch Planning Area 12
Freeway Commercial Project as a water supply assessment report consistent with
the requirements of the legislation enacted by SB 610. The City of Chula Vista, as
lead agency under the CEQA for the Otay Ranch Planning Area 12 Freeway
Commercial Project environmental documentation, may cite the approved WSA&V
Report as evidence that a sufficient water supply is planned and intended to be
available to serve the Otay Ranch Planning Area 12 Freeway Commercial Project.
Senate Bill (SB) 221 Water Supply Verification: The District's Board of Directors
approved WSA&V Report may be incorporated into the Otay Ranch Planning Area
12 Freeway Commercial Project as a water supply verification report, consistent with
the requirements of the legislation enacted by SB 221. The City, within their process
of approving the Otay Ranch Planning Area 12 Freeway Commercial Project, may
cite the approved WSA&V Report as verification of intended sufficient water supply
to serve the Project.
OTAY WATER DISTRICT
WATER SUPPLY ASSESSMENT AND
VERIFICATION REPORT
Otay Ranch Planning Area 12 Freeway Commercial
D0894-090152
Prepared by:
Robert Kennedy, P.E.
Engineering Manager
Otay Water District
in consultation with
Dexter Wilson Engineering, Inc.
and
San Diego County Water Authority
May 2013
Otay Water District
Water Supply Assessment and Verification Report
Otay Ranch Planning Area 12 Freeway Commercial
Otay Water District
Water Supply Assessment and Verification Report
May 2013
Otay Ranch Planning Area 12 Freeway Commercial
Table of Contents
Executive Summary .................................................................................................................................... 1
Section 1 - Purpose ...................................................................................................................................... 6
Section 2 - Findings ..................................................................................................................................... 7
Section 3 - Project Description ................................................................................................................ 10
Section 4 – Otay Water District ............................................................................................................... 11
4.1 Urban Water Management Plan ............................................................ 13
Section 5 – Historical and Projected Water Demands .......................................................................... 14
5.1 Demand Management (Water Conservation) ......................................... 19
Section 6 - Existing and Projected Supplies ........................................................................................... 22
6.1 Metropolitan Water District of Southern California 2005
Regional Urban Water Management Plan ............................................. 23
6.2 San Diego County Water Authority Regional Water Supplies ................ 24
6.3 Otay Water District ............................................................................... 41
6.3.1 Availability of Sufficient Supplies and Plans for
Acquiring Additional Supplies ................................................... 42
6.3.1.1 Imported and Regional Supplies .................................. 43
6.3.1.2 Recycled Water Supplies ............................................ 45
Section 7 – Conclusion: Availability of Sufficient Supplies .................................................................. 53
Source Documents ........................................................................................................................ 59
Appendix A: Otay Ranch PA 12 Freeway Commercial Regional Location Map
Appendix B: Otay Ranch PA 12 Freeway Commercial Proposed Development Plan
Otay Water District
Water Supply Assessment and Verification Report
Otay Ranch Planning Area 12 Freeway Commercial
1
Otay Water District
Water Supply Assessment and Verification Report
May 2013
Otay Ranch Planning Area 12 Freeway Commercial
Executive Summary
The Otay Water District (Otay WD) prepared this Water Supply Assessment and Verification
Report (WSA&V Report) at the request of the City of Chula Vista (City) for the Otay Ranch
Planning Area 12 Freeway Commercial project. Baldwin and Sons submitted a Specific
Planning Area (SPA) Amendment to the City for the development of the Planning Area 12
Freeway Commercial project.
Otay Ranch Planning Area 12 Freeway Commercial Project Overview and Water Use
The Planning Area 12 Freeway Commercial project is included within a land use planning
document known as the Otay Ranch General Development Plan/Sub-regional Plan (Otay
Ranch GDP). The County of San Diego and City of Chula Vista jointly prepared and adopted
the Otay Ranch GDP. The Planning Area 12 Freeway Commercial project is located within a
portion of the Otay Ranch GDP. The project is a part of the designated 14 villages and five
planning areas within the Otay Ranch GDP area. The Chula Vista City Council and the San
Diego County Board of Supervisors adopted the Otay Ranch GDP on October 28, 1993,
which was accompanied by a Program Environmental Impact Report EIR-90-01 (SCH
#89010154). As the Otay Ranch area has developed over time, the Otay Ranch GDP has been
periodically amended to address land use and circulation element issues specific to individual
Villages.
The Planning Area 12 Freeway Commercial project is located along the southern boundary of
Olympic Parkway and includes development on both sides of Town Center Drive. Baldwin
and Sons development concept for the approximately 34.5 acre site includes multi-family
residential, hotel, commercial, and a park site. The project site is planned for 448 residential
units, 257 hotel rooms, and up to 115,000 square feet of commercial development. The
current entitlement on the property was for the entire 34.5 acres to be commercial with up to
347,000 square feet of building space.
The expected potable water demands for the Planning Area 12 Freeway Commercial Project
are 0.167 million gallons per day (mgd) or about 187 acre feet per year (AFY). This is 127
AFY higher than the demand estimate in the District’s 2010 Water Resources Master Plan
Update and District’s 2010 UWMP. The projected recycled water demand for the proposed
Otay Water District
Water Supply Assessment and Verification Report
Otay Ranch Planning Area 12 Freeway Commercial
2
project is approximately 0.025 mgd or about 28.5 AFY, representing about 13% of total
project water demand.
The 127 AFY increase in demand is accounted for through the Accelerated Forecasted
Growth demand increment of the Water Authority’s 2010 UWMP. As documented in the
Water Authority’s 2010 UWMP, the Water Authority is planning to meet future and existing
demands which include the demand increment associated with the accelerated forecasted
growth. The Water Authority will assist its member agencies in tracking the environmental
documents provided by the agencies that include water supply assessments and verifications
reports that utilize the accelerated forecasted growth demand increment to demonstrate
supplies for the development. In addition, the next update of the demand forecast for the
Water Authority’s 2015 UWMP will be based on SANDAG’s most recently updated forecast,
which will include the Project. Therefore, based on the findings from the Otay WD’s 2010
UWMP and the Water Authority’s 2010 UWMP, this project will result in no unanticipated
demands.
The Water Authority’s 2010 Urban Water Management Plan (UWMP) provides for a
comprehensive planning analysis at a regional level and includes water use associated with
accelerated forecasted development as part of its municipal and industrial sector demand
projections. These housing and commercial units were identified by the San Diego
Association of Government (SANDAG) in the course of its regional housing needs
assessment, but are not yet included in existing general land use plans of local jurisdictions.
The demand associated with accelerated forecasted residential development is intended to
account for SANDAG’s land-use development currently projected to occur between 2035 and
2050, but has the likely potential to occur on an accelerated schedule. SANDAG estimates
that this accelerated forecasted residential and commercial development forecasted could
occur within the planning horizon (2015 to 2035) of the 2010 UWMP. This land-use is not
included in local jurisdictions’ general plans, so their projected demands are incorporated at a
regional level. When necessary, this additional demand increment, termed Accelerated
Forecasted Growth, can be used by member agencies to meet the demands of development
projects not identified in the general land use plans.
Planned Imported Water Supplies
The Water Authority and MWD have an established process that ensures supplies are being
planned to meet future growth. Any annexations and revisions to established land use plans
are captured in the SANDAG updated forecasts for land use planning, demographics, and
economic projections. SANDAG serves as the regional, intergovernmental planning agency
that develops and provides forecast information. The Water Authority and MWD update their
demand forecasts and supply needs based on the most recent SANDAG forecast
approximately every five years to coincide with preparation of their UWMP’s. Prior to the
next forecast update, local jurisdictions may require water supply assessment and/or
verification reports for proposed land developments that are not within the Otay WD, Water
Otay Water District
Water Supply Assessment and Verification Report
Otay Ranch Planning Area 12 Freeway Commercial
3
Authority, nor MWD jurisdictions (i.e. pending or proposed annexations) or that have revised
land use plans than what is reflected in the existing growth forecasts. Proposed land areas
with pending or proposed annexations or revised land use plans typically result in the creation
of higher demand and supply requirements than anticipated. The Otay WD, Water Authority,
and MWD next demand forecast and supply requirements and associated planning documents
would then capture any increase or decrease in demands and required supplies as a result of
annexations or revised land use planning decisions.
The California Urban Water Management Planning Act (Act), which is included in the
California Water Code, requires all urban water suppliers within the state to prepare an
UWMP and update it every five years. The purpose and importance of the UWMP has
evolved since it was first required 25 years ago. State agencies and the public frequently use
the document to determine if agencies are planning adequately to reliably meet future
demands. As such, UWMPs serve as an important element in documenting supply
availability for the purpose of compliance with state laws, Senate Bills 610 and 221, linking
water supply sufficiency to large land-use development approval. Agencies must also have a
UWMP prepared, pursuant to the Act, in order to be eligible for state funding and drought
assistance.
MWD’s Integrated Resource Plan (IRP) identifies a mix of resources (imported and local)
that, when implemented, will provide 100 percent reliability for full-service demands through
the attainment of regional targets set for conservation, local supplies, State Water Project
supplies, Colorado River supplies, groundwater banking, and water transfers. The MWD’s
2010 update to the IRP (2010 IRP Update) includes a planning buffer supply intended to
mitigate against the risks associated with implementation of local and imported supply
programs. The planning buffer identifies an additional increment of water that could
potentially be developed if other supplies are not implemented as planned. As part of
implementation of the planning buffer, MWD periodically evaluates supply development to
ensure that the region is not under or over developing supplies. Managed properly, the
planning buffer will help ensure that the southern California region, including San Diego
County, will have adequate water supplies to meet future demands.
Water supply agencies throughout California continue to face climatological, environmental,
legal, and other challenges that impact water source supply conditions, such as the court
rulings regarding the Sacramento-San Joaquin Delta issues and the recent drought impacting
the western states. These challenges and others will essentially always be present. The
regional water supply agencies, the Water Authority and MWD, along with Otay WD
nevertheless fully intend to have sufficient, reliable supplies to serve demands.
In Section ES-5 of MWD’s 2010 Regional Urban Water Management Plan (2010 RUWMP),
MWD states that MWD has supply capacities that would be sufficient to meet expected
demands from 2015 through 2035. MWD has plans for supply implementation and continued
development of a diversified resource mix including programs in the Colorado River
Aqueduct, State Water Project, Central Valley Transfers, local resource projects, and in-
Otay Water District
Water Supply Assessment and Verification Report
Otay Ranch Planning Area 12 Freeway Commercial
4
region storage that enables the region to meet its water supply needs. MWD’s 2010 RUWMP
identifies potential reserve supplies in the supply capability analysis (Tables 2-9, 2-10, and 2-
11), which could be available to meet the unanticipated demands such as those related to the
Planning Area 12 Freeway Commercial Project.
The County Water Authority Act, Section 5 subdivision 11, states that the Water Authority
“as far as practicable, shall provide each of its member agencies with adequate supplies of
water to meet their expanding and increasing needs.”
As part of preparation of a written water supply assessment report, an agency’s shortage
contingency analysis should be considered in determining sufficiency of supply. Section 11
of the Water Authority’s 2010 UWMP contains a detailed shortage contingency analysis that
addresses a regional catastrophic shortage situation and drought management. The analysis
demonstrates that the Water Authority and its member agencies, through the Emergency
Response Plan, Emergency Storage Project, and Drought Management Plan (DMP) are taking
actions to prepare for and appropriately handle an interruption of water supplies. The DMP,
adopted in May 2006, provides the Water Authority and its member agencies with a series of
potential actions to take when faced with a shortage of imported water supplies from MWD
due to prolonged drought or other supply shortfall conditions. The actions will help the
region avoid or minimize the impacts of shortages and ensure an equitable allocation of
supplies.
Otay Water District Water Supply Development Program
In evaluating the availability of sufficient water supply, the Planning Area 12 Freeway
Commercial project proponents are required to participate in the development of alternative
water supply project(s). This can be achieved through payment of the New Water Supply Fee
adopted by the Otay Water district Board in May 2010. These water supply projects are in
addition to those identified as sustainable supplies in the current Water Authority and MWD
UWMP, IRP, Master Plans, and other planning documents. These new water supply projects
are in response to the regional water supply issues. These new additional water supply
projects are not currently developed and are in various stages of the planning process. A few
examples of these alternative water supply projects include the Middle Sweetwater River
Basin Groundwater Well project, the North District Recycled Water Supply Concept, the
Rosarito Ocean Desalination Facility project, and the Rancho del Rey Groundwater Well
project. The Water Authority and MWD next forecast and supply planning documents would
capture any increase in water supplies resulting from any new water resources developed by
the Otay WD.
Findings
The WSA&V Report identifies and describes the processes by which water demand
projections for the proposed Planning Area 12 Freeway Commercial project will be fully
included in the water demand and supply forecasts of the Urban Water Management Plans
Otay Water District
Water Supply Assessment and Verification Report
Otay Ranch Planning Area 12 Freeway Commercial
5
and other water resources planning documents of the Water Authority and MWD. Water
supplies necessary to serve the demands of the proposed project, along with existing and other
projected future users, as well as the actions necessary and status to develop these supplies,
have been identified in the Planning Area 12 Freeway Commercial project WSA&V Report
and will be included in the future water supply planning documents of the Water Authority
and MWD.
This WSA&V Report includes, among other information, an identification of existing water
supply entitlements, water rights, water service contracts, water supply projects, or
agreements relevant to the identified water supply needs for the proposed Planning Area 12
Freeway Commercial project. The WSA&V Report demonstrates and documents that
sufficient water supplies are planned for and are intended to be available over a 20-year
planning horizon, under normal conditions and in single and multiple dry years to meet the
projected demand of the proposed Planning Area 12 Freeway Commercial project and the
existing and other planned development projects to be served by the Otay WD.
Accordingly, after approval of a WSA&V Report for the Planning Area 12 Freeway
Commercial project by the Otay WD Board of Directors (Board), the WSA&V Report may be
used to comply with the requirements of the legislation enacted by Senate Bills 610 and 221
as follows:
1. Senate Bill 610 Water Supply Assessment: The Otay WD Board approved WSA&V
Report may be incorporated into the California Environmental Quality Act (CEQA)
Environmental Impact Report (EIR) compliance process for the Planning Area 12
Freeway Commercial project as a water supply assessment report consistent with the
requirements of the legislation enacted by SB 610. The City as lead agency under
CEQA for the Planning Area 12 Freeway Commercial project EIR amendment may
cite the approved WSA&V Report as evidence that a sufficient water supply is
planned for and is intended to be made available to serve the Planning Area 12
Freeway Commercial project.
2. Senate Bill 221 Water Supply Verification: The Otay WD Board approved WSA&V
Report may be incorporated into the City’s Tentative Map approval process for the
Planning Area 12 Freeway Commercial project as a water supply verification report,
consistent with the requirements of the legislation enacted by SB 221. The City,
within their process of approving the Planning Area 12 Freeway Commercial project’s
Tentative Map, may cite the approved WSA&V Report as verification of intended
sufficient water supply to serve the Planning Area 12 Freeway Commercial project.
Otay Water District
Water Supply Assessment and Verification Report
Otay Ranch Planning Area 12 Freeway Commercial
6
Section 1 - Purpose
The Planning Area 12 project is located in the Otay Ranch Freeway Commercial core area.
The northern portion of Planning Area 12 is identified as FC-2 in the August 2004 approved
SPA plan and allows for up to 347,000 square feet of commercial development on 34.5 acres.
Baldwin and Sons submitted a SPA amendment to the City of Chula Vista (City) for the
development of the Otay Ranch Planning Area 12 Freeway Commercial project. The City
requested that Otay WD prepare a WSA&V Report for the Planning Area 12 Freeway
Commercial project. The current Planning Area 12 Freeway Commercial project description
is provided in Section 3 of this WSA&V Report.
This WSA&V Report for the Planning Area 12 Freeway Commercial project has been
prepared by the Otay WD in consultation with Dexter Wilson Engineering, Inc., the Water
Authority, and the City pursuant to Public Resources Code Section 21151.9 and California
Water Code Sections 10631, 10656, 10910, 10911, 10912, and 10915 referred to as Senate
Bill (SB) 610 and Business and Professions Code Section 11010 and Government Code
Sections 65867.5, 66455.3, and 66473.7 referred to as SB 221. SB 610 and SB 221 amended
state law, effective January 1, 2002, intending to improve the link between information on
water supply availability and certain land use decisions made by cities and counties. SB 610
requires that the water purveyor of the public water system prepare a water supply assessment
to be included in the California Environmental Quality Act (CEQA) environmental
documentation and approval process of certain proposed projects. SB 221 requires
affirmative written verification from the water purveyor of the public water system that
sufficient water supplies are to be available for certain residential subdivisions of property
prior to approval of a tentative map. The requirements of SB 610 and SB 221 are being
addressed by this WSA&V Report.
The City also requested, since the requirements of SB 610 and SB 221 are substantially
similar, that Otay WD prepare both the water supply assessment and verification
concurrently.
This WSA&V Report evaluates water supplies that are planned to be available during normal,
single dry year, and multiple dry water years during a 20-year planning horizon to meet
existing demands, expected demands of the Planning Area 12 Freeway Commercial project,
and reasonably foreseeable planned future water demands served by Otay WD. The Otay WD
Board of Directors approved WSA&V Report is planned to be used by the City in its
evaluation of the Planning Area 12 Freeway Commercial project under the CEQA and
Tentative Map approval processes.
Otay Water District
Water Supply Assessment and Verification Report
Otay Ranch Planning Area 12 Freeway Commercial
7
Section 2 - Findings
The Otay WD prepared this WSA&V Report at the request of the City for the Otay Ranch
Planning Area 12 Freeway Commercial project. Baldwin and Sons submitted a SPA
amendment application to the City for the revised development plan of the Planning Area 12
Freeway Commercial project.
The Planning Area 12 Freeway Commercial Project is located within the jurisdictions of the
Otay WD, the Water Authority, and the MWD Water District of Southern California (MWD).
To obtain permanent imported water supply service, land areas are required to be within the
jurisdictions of the Otay WD, Water Authority, and MWD to utilize imported water supply.
The expected potable water demands for the Planning Area 12 Freeway Commercial Project
are 0.167 million gallons per day (mgd) or about 187 acre feet per year (AFY). This is 127
AFY higher than the demand estimate in the District’s 2010 Water Resources Master Plan
Update and District’s 2010 UWMP. The projected recycled water demand for the proposed
project is approximately 0.025 mgd or about 28.5 AFY, representing about 13% of total
project water demand.
The 127 AFY increase in demand is accounted for through the Accelerated Forecasted
Growth demand increment of the Water Authority’s 2010 UWMP. As documented in the
Water Authority’s 2010 UWMP, the Water Authority is planning to meet future and existing
demands which include the demand increment associated with the accelerated forecasted
growth. The Water Authority will assist its member agencies in tracking the environmental
documents provided by the agencies that include water supply assessments and verifications
reports that utilize the accelerated forecasted growth demand increment to demonstrate
supplies for the development. In addition, the next update of the demand forecast for the
Water Authority’s 2015 UWMP will be based on SANDAG’s most recently updated forecast,
which will include the Project. Therefore, based on the findings from the Otay WD’s 2010
UWMP and the Water Authority’s 2010 UWMP, this project will result in no unanticipated
demands.
The Planning Area 12 Freeway Commercial Project development proponents are required to
use recycled water for irrigation and other appropriate uses. The primary benefit of using
recycled water is that it will offset the potable water demands by an estimated 28.5 AFY. The
WRMP Update and the 2010 Urban Water Management Plan (UWMP) anticipated that the
land area to be utilized for the Planning Area 12 Freeway Commercial Project would use both
potable and recycled water.
The Water Authority’s 2010 UWMP provides for a comprehensive planning analysis at a
regional level and includes water use associated with accelerated forecasted development as
part of its municipal and industrial sector demand projections. These housing and commercial
units were identified by the SANDAG in the course of its regional housing needs assessment,
Otay Water District
Water Supply Assessment and Verification Report
Otay Ranch Planning Area 12 Freeway Commercial
8
but are not yet included in existing general land use plans of local jurisdictions. The demand
associated with accelerated forecasted residential development is intended to account for
SANDAG’s land-use development currently projected to occur between 2035 and 2050, but
has the likely potential to occur on an accelerated schedule. SANDAG estimates that this
accelerated forecasted residential and commercial development forecasted could occur within
the planning horizon (2015 to 2035) of the Water Authority’s 2010 UWMP. This land-use is
not included in local jurisdictions’ general plans, so their projected demands are incorporated
at a regional level. When necessary, this additional demand increment, termed Accelerated
Forecasted Growth, can be used by member agencies to meet the demands of development
projects not identified in the general land use plans.
The Water Authority and MWD have an established process that ensures supplies are being
planned to meet future growth. Any annexations and revisions to established land use plans
are captured in the SANDAG updated forecasts for land use planning, demographics, and
economic projections. SANDAG serves as the regional, intergovernmental planning agency
that develops and provides forecast information. The Water Authority and MWD update their
demand forecasts and supply needs based on the most recent SANDAG forecast
approximately every five years to coincide with preparation of their urban water management
plans. Prior to the next forecast update, local jurisdictions may require water supply
assessment and/or verification reports for proposed land developments that are not within the
Otay WD, Water Authority, nor MWD jurisdictions (i.e. pending or proposed annexations) or
that have revised land use plans than reflected in the existing growth forecasts. Proposed land
areas with pending or proposed annexations or revised land use plans typically result in
creating higher demand and supply requirements than anticipated. The Otay WD, the Water
Authority, and MWD next demand forecast and supply requirements and associated planning
documents would then capture any increase or decrease in demands and required supplies as a
result of annexations or revised land use planning decisions.
This process is utilized by the Water Authority and MWD to document the water supplies
necessary to serve the demands of the proposed Planning Area 12 Freeway Commercial
project, along with existing and other projected future users, as well as the actions necessary
to develop these supplies. Through this process the necessary demand and supply information
is thus assured to be identified and incorporated within the water supply planning documents
of the Water Authority and MWD.
The Otay Water District 2010 UWMP included a water conservation component to comply
with Senate Bill 7 of the Seventh Extraordinary Session (SBX 7-7), which became effective
February 3, 2010. This new law was the water conservation component to the Delta
legislation package, and seeks to achieve a 20 percent statewide reduction in urban per capita
water use in California by December 31, 2020. Specifically, SBX 7-7 from this Extraordinary
Session requires each urban retail water supplier to develop urban water use targets to help
meet the 20 percent reduction goal by 2020 (20x2020), and an interim water reduction target
by 2015.
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Otay WD has adopted Method 1 to set its 2015 interim and 2020 water use targets. Method 1
requires setting the 2020 water use target to 80 percent of baseline per capita water use target
as provided in the State’s Draft 20x2020 Water Conservation Plan. The Otay WD 2015 target
is 171 gallons per capita per day (gpcd) and the 2020 gpcd target at 80 percent of baseline is
152 gpcd.
The Otay WD’s recent per capita water use has been declining to the point where current
water use already meets the 2020 target for Method 1. This recent decline in per capita water
use is largely due to drought water use restrictions, increased water costs, and economic
conditions. However, Otay WD’s effective water use awareness campaign and enhanced
conservation mentality of its customers will likely result in some long-term carryover of these
reduced consumption rates.
In evaluating the availability of sufficient water supply, the Planning Area 12 Freeway
Commercial project proponents are required to participate in the development of alternative
water supply project(s). This can be achieved through payment of the New Water Supply Fee
adopted by the Otay Water District Board in May 2010. These water supply projects are in
addition to those identified as sustainable supplies in the current Water Authority and MWD
UWMP, IRP, Master Plans, and other planning documents. These new water supply projects
are in response to the regional water supply issues related to the Sacramento-San Joaquin
Delta and the current ongoing western states drought conditions. These new additional water
supply projects are not currently developed and are in various stages of the planning process.
A few examples of these alternative water supply projects include the Middle Sweetwater
River Basin Groundwater Well project, the North District Recycled Water Supply Concept,
the Rosarito Ocean Desalination Facility project, and the Rancho del Rey Groundwater Well
project. The Water Authority and MWD next forecast and supply planning documents would
capture any increase in water supplies resulting from any new water resources developed by
the Otay WD.
Water supplies necessary to serve the demands of the proposed Planning Area 12 Freeway
Commercial project, along with existing and other reasonably foreseeable projected future
users, as well as the actions necessary and status to develop these supplies, will be identified
and included within the water supply planning documents of the Water Authority and MWD.
This WSA&V Report demonstrates and verifies that with development of the resources
currently identified and those that may be additional acquired, that there is sufficient water
supplies being planned for and is intended to be developed over the next 20-year planning
horizon to meet the projected demand of the proposed Planning Area 12 Freeway Commercial
project and the existing and other reasonably foreseeable planned development projects within
the Otay WD.
This WSA&V Report includes, among other information, an identification of existing water
supply entitlements, water rights, water service contracts, proposed water supply projects, or
agreements relevant to the identified water supply needs for the proposed Planning Area 12
Freeway Commercial project. This WSA&V Report incorporates by reference the current
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Urban Water Management Plans and other water resources planning documents of the Otay
WD, the Water Authority, and MWD. The Otay WD prepared this WSA&V to verify and
document that sufficient water supplies are being planned for and are intended to be acquired
to meet projected water demands of the Planning Area 12 Freeway Commercial project and
the existing and other reasonably foreseeable planned development projects within the Otay
WD for a 20-year planning horizon, in normal supply years, and in single dry and multiple
dry years.
Based on a normal water supply year, the five-year increments for a 20-year projection
indicate projected potable and recycled water supply is being planned for and is intended to be
acquired to meet the estimated water demand targets of the Otay WD (44,883 acre-feet (AF)
in 2015 to 56,614 AF in 2035 per the Otay Water District 2010 UWMP). Based on dry year
forecasts, the estimated water supply is also being planned for and is intended to be acquired
to meet the projected water demand, during single dry and multiple dry year scenarios. On
average, the dry-year demands are about 6.4 percent higher than the normal year demands.
The Otay WD recycled water supply is assumed to be drought-proof and not subject to
reduction during dry periods.
Together, these findings demonstrate and verify that sufficient water supplies are being
planned for and are intended to be acquired, as well as the actions necessary and status to
develop these supplies are and will be further documented, to serve the proposed Planning
Area 12 Freeway Commercial project and the existing and other reasonably foreseeable
planned projects within the Otay WD in both normal and single and multiple dry year
forecasts for a 20-year planning horizon.
Section 3 - Project Description
The Otay Ranch Planning Area 12 Freeway Commercial project is located within the City of
Chula Vista, California. Refer to Appendix A for a regional location map of the proposed
project.
The Planning Area 12 Freeway Commercial project is included within a land use planning
document known as the Otay Ranch General Development Plan/Sub-regional Plan (Otay
Ranch GDP). The County of San Diego and City of Chula Vista jointly prepared and adopted
the Otay Ranch GDP. The project is a part of the designated 14 villages and five planning
areas within the Otay Ranch GDP area. The Otay Ranch Freeway Commercial Project
current development plan approval is dependent on the City’s eventual adoption of their
Sectional Planning Area Plan (SPA) amendment.
The Chula Vista City Council and the San Diego County Board of Supervisors adopted the
Otay Ranch GDP on October 28, 1993, which was accompanied by a Program Environmental
Impact Report EIR-90-01 (SCH #89010154).
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The approximately 23,000 acre Otay Ranch is a master-planned community that includes a
broad range of residential, commercial, retail, and industrial development interwoven with
civic and community uses, such as libraries, parks, and schools, together with an open space
preserve system consisting of approximately 11,375 acres.
The Baldwin and Sons proposed development concept for the approximately 34.5 acre
Planning Area 12 Freeway Commercial project is planned as a combination of land uses as
shown in Table 1.
Table 1
Otay Ranch PA 12 Freeway Commercial Proposed Land Uses
Location Land Use Description Area Dwelling
Units
PA 12 Freeway Commercial Multi-Family Residential --- 448 units
PA 12 Freeway Commercial Hotel --- 237 rooms
PA 12 Freeway Commercial Commercial 14.5 acres ---
PA 12 Freeway Commercial Park 1.0 acres ---
The proposed development within Planning Area 12 Freeway Commercial consists of 448
multi-family residential units, 237 hotel rooms, commercial, and a park. The project is
located along the southerly edge of Olympic Parkway on both sides of Town Center Drive.
Refer to Appendix B for the proposed development plan of the Planning Area 12 Freeway
Commercial project.
The City has identified discretionary actions and/or permit approval requirements for the
Planning Area 12 Freeway Commercial project. The projected potable and recycled water
demands and resulting water supply requirements associated with the Planning Area 12
Freeway Commercial project have considered the discretionary actions and/or permit
approvals and are incorporated into and used in this WSA&V Report. The water demands for
the proposed Planning Area 12 Freeway Commercial project are provided in Section 5 –
Historical and Projected Water Demands.
Section 4 – Otay Water District
The Otay WD is a municipal water district formed in 1956 pursuant to the Municipal Water
District Act of 1911 (Water Code §§ 71000 et seq.). The Otay WD joined the Water
Authority as a member agency in 1956 to acquire the right to purchase and distribute imported
water throughout its service area. The Water Authority is an agency responsible for the
wholesale supply of water to its 24 public agency members in San Diego County.
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The Otay WD currently relies on the Water Authority for 100 percent of its treated potable
water supply. The Water Authority is the agency responsible for the supply of imported water
into San Diego County through its membership in MWD. The Water Authority currently
obtains the vast majority of its imported supply from MWD, but is in the process of
diversifying its available supplies.
The Otay WD provides water service to residential, commercial, industrial, and agricultural
customers, and for environmental and fire protection uses. In addition to providing water
throughout its service area, Otay WD also provides sewage collection and treatment services
to a portion of its service area known as the Jamacha Basin. The Otay WD also owns and
operates the Ralph W. Chapman Water Reclamation Facility (RWCWRF) which has an
effective treatment capacity of 1.2 mgd or about 1,300 AFY to produce recycled water. On
May 18, 2007 an additional source of recycled water supply, at least 6 mgd or about 6,720
AFY, became available to Otay WD from the City of San Diego’s South Bay Water
Reclamation Plant (SBWRP).
The Otay WD jurisdictional area is generally located within the south central portion of San
Diego County and includes approximately 125 square miles. The Otay WD serves portions of
the unincorporated communities of southern El Cajon, La Mesa, Rancho San Diego, Jamul,
Spring Valley, Bonita, and Otay Mesa, the eastern portion of the City of Chula Vista and a
portion of the City of San Diego on Otay Mesa. The Otay WD jurisdiction boundaries are
roughly bounded on the north by the Padre Dam Municipal Water District, on the northwest
by the Helix Water District, and on the west by the South Bay Irrigation District (Sweetwater
Authority) and the City of San Diego. The southern boundary of Otay WD is the international
border with Mexico.
The planning area addressed in the Otay WD 2010 WRMP Update and the Otay WD 2010
UWMP includes the land within the jurisdictional boundary of the Otay WD and those areas
outside of the present Otay WD boundaries considered to be in the Area of Influence of the
Otay WD. Figure 2-1 contained within the Otay WD 2010 WRMP Update shows the
jurisdictional boundary of the Otay WD and the Area of Influence. The planning area is
approximately 143 square miles, of which approximately 125 square miles are within the
Otay WD current boundaries and approximately 18 square miles are in the Area of Influence.
The area east of Otay WD is rural and currently not within any water purveyor jurisdiction
and potentially could be served by the Otay WD in the future if the need for imported water
becomes necessary, as is the case for the Area of Influence.
The City of Chula Vista, the City of San Diego, and the County of San Diego are the three
land use planning agencies within the Otay WD jurisdiction. Data on forecasts for land use
planning, demographics, economic projections, population, and the future rate of growth
within Otay WD were obtained from the SANDAG. SANDAG serves as the regional,
intergovernmental planning agency that develops and provides forecast information through
the year 2050. Population growth within the Otay WD service area is expected to increase
from the 2010 figure of approximately 198,616 to an estimated 284,997 by 2035. Land use
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information used to develop water demand projections are based upon Specific or Sectional
Planning Areas, the Otay Ranch General Development Plan/Sub-regional Plan, East Otay
Mesa Specific Plan Area, San Diego County Community Plans, and City of San Diego Otay
Mesa Community Plan, City of Chula Vista, and County of San Diego General Plans.
The Otay WD long-term historic growth rate has been approximately 4 percent. The growth
rate has significantly slowed due to the current economic conditions and it is expected to slow
as the inventory of developable land is diminished.
Climatic conditions within the Otay WD service area are characteristically Mediterranean
near the coast, with mild temperatures year round. Inland areas are both hotter in summer and
cooler in winter, with summer temperatures often exceeding 90 degrees and winter
temperatures occasionally dipping to below freezing. Most of the region’s rainfall occurs
during the months of December through March. Average annual rainfall is approximately
12.17 inches per year.
Historic climate data were obtained from the Western Regional Climate Center for Station
042706 (El Cajon). This station was selected because its annual temperature variation is
representative of most of the Otay WD service area. While there is a station in the City of
Chula Vista, the temperature variation at the City of Chula Vista station is more typical of a
coastal environment than the conditions in most of the Otay WD service area.
4.1 Urban Water Management Plan
In accordance with the California Urban Water Management Planning Act and recent
legislation, the Otay WD Board of Directors adopted an UWMP in June 2011 and
subsequently submitted the plan to the California Department of Water Resources (DWR).
The Otay WD 2010 UWMP is currently being reviewed by DWR. As required by law, the
Otay WD 2010 UWMP includes projected water supplies required to meet future demands
through 2035. In accordance with Water Code Section 10910 (c)(2) and Government Code
Section 66473.7 (c)(3), information from the Otay Water District 2010 UWMP along with
supplemental information from the Otay WD WRMP Update have been utilized to prepare
this WSA&V Report and are incorporated herein by reference.
The state Legislature passed Senate Bill 7 as part of the Seventh Extraordinary Session (SBX
7-7) on November 10, 2009, which became effective February 3, 2010. This new law was the
water conservation component to the Delta legislation package and seeks to achieve a 20
percent statewide reduction in urban per capita water use in California by December 31, 2020.
Specifically, SBX 7-7 from this Extraordinary Session requires each urban retail water
supplier to develop urban water use targets to help meet the 20 percent reduction goal by 2020
(20x2020), and an interim water reduction target by 2015.
The SBX 7-7 target setting process includes the following: (1) baseline daily per capita water
use; (2) urban water use target; (3) interim water use target; (4) compliance daily per capita
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water use, including technical bases and supporting data for those determinations. In order
for an agency to meet its 2020 water use target, each agency can increase its use of recycled
water to offset potable water use and also step up its water conservation measures. The
required water use targets for 2020 and an interim target for 2015 are determined using one of
four target methods – each method has numerous methodologies. The 2020 urban water use
target may be updated in a supplier’s 2015 UWMP.
In 2015, urban retail water suppliers will be required to report interim compliance followed by
actual compliance in 2020. Interim compliance is halfway between the baseline water use and
2020 target. Baseline, target, and compliance-year water use estimates are required to be
reported in gallons per capita per day (gpcd).
Failure to meet adopted targets will result in the ineligibility of a water supplier to receive
grants or loans administered by the State unless one (1) of two (2) exceptions is met.
Exception one (1) states a water supplier may be eligible if they have submitted a schedule,
financing plan, and budget to DWR for approval to achieve the per capita water use
reductions. Exception two (2) states a water supplier may be eligible if an entire water service
area qualifies as a disadvantaged community.
Otay WD has adopted Method 1 to set its 2015 interim and 2020 water use targets. Method 1
requires setting the 2020 water use target to 80 percent of baseline per capita water use target
as provided in the State’s Draft 20x2020 Water Conservation Plan. The Otay WD 2015 target
is 171 gpcd and the 2020 gpcd target at 80 percent of baseline is 152 gpcd.
The Otay WD’s recent per capita water use has been declining to the point where current
water use already meets the 2020 target for Method 1. This recent decline in per capita water
use is largely due to drought water use restrictions, increased water costs, and poor economic
conditions. However, Otay WD’s effective water use awareness campaign and enhanced
conservation mentality of its customers will likely result in some long-term carryover of these
reduced consumption rates beyond the current drought period.
Section 5 – Historical and Projected Water Demands
The projected demands for Otay WD are based on Specific or Sectional Planning Areas, the
Otay Ranch General Development Plan/Sub-regional Plan, the East Otay Mesa Specific Plan
Area, San Diego County Community Plans, and City of San Diego Otay Mesa Community
Plan, City of Chula Vista and County of San Diego General Plans. This land use information
is also used by SANDAG as the basis for its most recent forecast data. This land use
information is utilized in the preparation of the Otay WD 2010 WRMP, and Otay WD 2010
UWMP to develop the forecasted demands and supply requirements.
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In 1994, the Water Authority selected the Institute for Water Resources-Municipal and
Industrial Needs (MAIN) computer model to forecast municipal and industrial water use for
the San Diego region. The MAIN model uses demographic and economic data to project
sector-level water demands (i.e. residential and non-residential demands). This econometric
model has over a quarter of a century of practical application and is used by many cities and
water agencies throughout the United States. The Water Authority’s version of the MAIN
model was modified to reflect the San Diego region’s unique parameters and is known as
CWA-MAIN.
The foundation of the water demand forecast is the underlying demographic and economic
projections. This was a primary reason, why, in 1992 the Water Authority and SANDAG
entered into a Memorandum of Agreement (MOA), in which the Water Authority agreed to
use the SANDAG current regional growth forecast for water supply planning purposes. In
addition, the MOA recognizes that water supply reliability must be a component of San Diego
County’s regional growth management strategy required by Proposition C, as passed by the
San Diego County voters in 1988. The MOA ensures a strong linkage between local general
plan land use forecasts and water demand projections and resulting supply needs for the San
Diego region.
Consistent with the previous CWA-MAIN modeling efforts, on February 26, 2010, the
SANDAG Board of Directors accepted the Series 12: 2050 Regional Growth Forecast. The
2050 Regional Growth Forecast will be used by SANDAG as the foundation for the next
Regional Comprehensive Plan update. SANDAG forecasts also are used by local
governments for planning, including the Water Authority’s 2010 UWMP update.
The municipal and industrial forecast also included an updated accounting of projected
conservation savings based on projected regional implementation of the California Urban
Water Conservation Council (CUWCC) Best Management Practices and SANDAG
demographic information for the period 2010 through 2035. These savings estimates were
then factored into the baseline municipal and industrial demand forecast.
A separate agricultural model, also used in prior modeling efforts, was used to forecast
agricultural water demands within the Water Authority service area. This model estimates
agricultural demand to be met by the Water Authority’s member agencies based on
agricultural acreage projections provided by SANDAG, crop distribution data derived from
the Department of Water Resources and the California Avocado Commission, and average
crop-type watering requirements based on California Irrigation Management Information
System data.
The Water Authority and MWD update their water demand and supply projections within
their jurisdictions utilizing the SANDAG most recent growth forecast to project future water
demands. This provides for the important strong link between demand and supply projections
to the land use plans of the cities and the county. This provides for consistency between the
retail and wholesale agencies water demand projections, thereby ensuring that adequate
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supplies are and will be planned for the Otay WD existing and future water users. Existing
land use plans, any revisions to land use plans, and annexations are captured in the SANDAG
updated forecasts. The Water Authority and MWD will update their demand forecasts based
on the SANDAG most recent forecast approximately every five years to coincide with
preparation of their urban water management plans. Prior to the next forecast update, local
jurisdictions may require water supply assessment and/or verification reports consistent with
Senate Bills 610 and 221 for proposed land use developments that either have pending or
proposed annexations into the Otay WD, Water Authority, and MWD or that have revised
land use plans than originally anticipated. The Water Authority and MWD next forecast and
supply planning documents would then capture any increase or decrease in demands caused
by annexations or revised land use plans.
In evaluating the availability of sufficient water supply, the Planning Area 12 Freeway
Commercial project proponents are required to participate in the development of alternative
water supply project(s). This can be achieved through payment of the New Water Supply Fee
adopted by the Otay WD Board in May 2010. These water supply projects are in addition to
those identified as sustainable supplies in the current Water Authority and MWD UWMP,
IRP, Master Plans, and other planning documents. These new water supply projects are in
response to the regional water supply issues related to climatological, environmental, legal,
and other challenges that impact water source supply conditions, such as the court rulings
regarding the Sacramento-San Joaquin Delta and the current ongoing western states drought
conditions. These new additional water supply projects are not currently developed and are in
various stages of the planning process. A few examples of these alternative water supply
projects include the Middle Sweetwater River Basin Groundwater Well project, the North
District Recycled Water Supply Concept, the Rosarito Ocean Desalination Facility project,
and the Rancho del Rey Groundwater Well project. The Water Authority and MWD next
forecast and supply planning documents would capture any increase in water supplies
resulting from any new water resources developed by the Otay WD.
In addition, MWD’s 2010 Regional Urban Water Management Plan identified potential
reserve supplies in the supply capability analysis (Tables 2-9, 2-10, and 2-11), which could be
available to meet any unanticipated demands. The Water Authority and MWD’s next forecast
and supply planning documents would capture any increase in necessary supply resources
resulting from any new water supply resources.
The Otay WD water demand projection methodology utilizes a component land use approach. This is
done by applying representative values of water use to the acreage of each land use type and then
aggregating these individual land use demand projections into an overall total demand for the Otay
WD. This is called the water duty method, and the water duty is the amount of water used in acre-
feet per acre per year. This approach is used for all the land use types except residential development where a
demand per dwelling unit was applied. In addition, commercial and industrial water use categories
are further subdivided by type including separate categories for golf courses, schools, jails,
prisons, hospitals, etc. where specific water demands are established.
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To determine water duties for the various types of land use, the entire water meter database of the
Otay WD is utilized and sorted by the appropriate land use types. The metered consumption records
are then examined for each of the land uses, and water duties are determined for the various types of
residential, commercial, industrial, and institutional land uses. For example the water duty factors
for commercial and industrial land uses are estimated using 1,785 and 893 gallons per day per acre,
respectively. Residential water demand is established based on the same data but computed on a per-
dwelling unit basis. The focus is to ensure that for each of the residential land use categories (very
low, low, medium, and high densities), the demand criteria used is adequately represented
based upon actual data. This method is used because residential land uses constitute a
substantial percentage of the total developable planning area of the Otay WD.
The WRMP Update calculates potable water demand by taking the gross acreage of a site and
applying a potable water reduction factor (PWRF), which is intended to represent the
percentage of acreage to be served by potable water and that not served by recycled water for
irrigation. For industrial land use, as an example, the PWRF is 0.95 (i.e., 95% of the site is
assumed to be served by potable water, 5% of the site is assumed to be irrigated with recycled
water). The potable net acreage is then multiplied by the unit demand factor corresponding to
its respective land use. This approach is used in the WRMP Update for all the land use types
except residential development where a demand per dwelling unit is applied. In addition,
commercial and industrial water use categories are further subdivided by type including
separate categories for golf courses, schools, jails, prisons, hospitals, etc. where specific water
demands are allocated.
By applying the established water duties to the proposed land uses, the projected water
demand for the entire Otay WD planning area at ultimate development is determined.
Projected water demands for the intervening years were determined using growth rate
projections consistent with data obtained from SANDAG and the experience of the Otay WD.
The historical and projected potable water demands for Otay WD are shown in Table 2.
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Table 2
Historical and Projected Potable Water Fiscal Year Demands (AF)
Water Use Sectors 2005 2010 2015 2020 2025 2030 2035
Single Family 21,233 17,165 23,633 28,312 33,600 37,211 40,635
Multi-Family 3,095 3,605 3,444 4,126 4,897 5,423 5,922
Commercial & 1,657 2,243 1,844 2,209 2,622 2,904 3,171
Institutional & 2,262 1,867 2,518 3,017 3,580 3,965 4,330
Landscape 6,458 3,732 10,134 12,141 14,408 15,957 17,425
Other 2,426 584 2,700 3,235 3,839 4,252 4,643
Unaccounted for 547 23 608 729 865 958 1,046
Totals 37,668 29,270 44,883 53,768 63,811 70,669 77,171 Source: Otay Water District 2010 UWMP.
The historical and projected recycled water demands for Otay WD are shown in Table 3.
Table 3
Historical and Projected Recycled Water Fiscal Year Demands (AF)
Water Use Sector 2005 2010 2015 2020 2025 2030 2035
Landscape 4,090 4,000 4,400 5,000 5,800 6,800 8,000
Totals 4,090 4,000 4,400 5,000 5,800 6,800 8,000
Source: Otay Water District 2010 UWMP, Table 10.
Using the land use demand projection criteria as established in the WRMP Update, the current
projected potable water demand for the proposed Planning Area 12 Freeway Commercial
project is shown in Table 4, which totals approximately 0.167 mgd or about 187 AFY. The
existing land use plan for the project resulted in a projected water use of 60 AFY based on
land use assumptions in the WRMP Update. Thus, projected water demands for the property
would be increased by 127 AFY as a result of the proposed land use change.
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Table 4
Planning Area 12 Freeway Commercial Projected Potable
Water Annual Average Demands
Location (Land Use) Quantity
Potable
Water
Factor
Net Potable
Acreage/Units Unit Rate Average
Demand
Multi-Family Residential 448 units 85% 255 gpd/unit 114,240
Commercial 14.5 ac 90% 13.05 1,785 gpd/ac 23,294
Hotel 257 rooms 115 gpd/room 29,555
Park 1.0 ac 0 0 2,155 gpd/ac 0
Total 167,089 gpd
(0.167 mgd)
The current projected recycled water demand for the proposed Planning Area 12 Freeway
Commercial project is provided in Table 5, which totals approximately 0.025 mgd or about
28.5 AFY, representing about 13% of total Planning Area 12 Freeway Commercial project
demand.
Table 5
Planning Area 12 Freeway Commercial Projected Recycled
Water Average Demands
Location (Land Use) Quantity
Recycled
Water
Factor
Net Recycled
Acreage Unit Rate Average
Demand
Multi-Family Residential 448 units 15% 45 gpd/unit 20,160
Commercial 14.5 ac 10% 1.45 2,155 gpd/ac 3,125
Park 1.0 100% 1.0 2,155 gpd/ac 2,155
Total 25,440 gpd
5.1 Demand Management (Water Conservation)
Demand management, or water conservation is a critical part of the Otay WD 2010 UWMP
and its long term strategy for meeting water supply needs of the Otay WD customers. Water
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conservation, is frequently the lowest cost resource available to any water agency. The goals
of the Otay WD water conservation programs are to:
• Reduce the demand for more expensive, imported water.
• Demonstrate continued commitment to the Best Management Practices (BMP).
• Ensure a reliable water supply.
The Otay WD is signatory to the Memorandum of Understanding (MOU) Regarding Urban
Water Conservation in California, which created the California Urban Water Conservation
Council (CUWCC) in 1991 in an effort to reduce California’s long-term water demands.
Water conservation programs are developed and implemented on the premise that water
conservation increases the water supply by reducing the demand on available supply, which is
vital to the optimal utilization of a region’s water supply resources. The Otay WD
participates in many water conservation programs designed and typically operated on a shared
cost participation program basis among the Water Authority, MWD, and their member
agencies. The demands shown in Tables 2 and 3 take into account implementation of water
conservation measures within Otay WD.
As one of the first signatories to the MOU Regarding Urban Water Conservation in
California, the Otay WD has made BMP implementation for water conservation the
cornerstone of its conservation programs and a key element in its water resource management
strategy. As a member of the Water Authority, Otay WD also benefits from regional
programs performed on behalf of its member agencies. The BMP programs implemented by
Otay WD and regional BMP programs implemented by the Water Authority that benefit all
their member agencies are addressed in the Otay WD 2010 UWMP. In partnership with the
Water Authority, the County of San Diego, City of San Diego, City of Chula Vista, and
developers, the Otay WD water conservation efforts are expected to grow and expand. The
resulting savings directly relate to additional available water in the San Diego County region
for beneficial use within the Water Authority service area, including the Otay WD.
Additional conservation or water use efficiency measures or programs practiced by the Otay
WD include the following:
• Supervisory Control and Data Acquisition System
The Otay WD implemented and has operated for many years a Supervisor Control and
Data Acquisition (SCADA) system to control, monitor, and collect data regarding the
operation of the water system. The major facilities that have SCADA capabilities are the
water flow control supply sources, transmission network, pumping stations, and water
storage reservoirs. The SCADA system allows for many and varied useful functions.
Some of these functions provide for operating personnel to monitor the water supply
source flow rates, reservoir levels, turn on or off pumping units, etc. The SCADA system
aids in the prevention of water reservoir overflow events and increases energy efficiency.
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• Water Conservation Ordinance
California Water Code Sections 375 et seq. permit public entities which supply water at
retail to adopt and enforce a water conservation program to reduce the quantity of water
used by the people therein for the purpose of conserving water supplies of such public
entity. The Otay WD Board of Directors established a comprehensive water conservation
program pursuant to California Water Code Sections 375 et seq., based upon the need to
conserve water supplies and to avoid or minimize the effects of any future shortage. A
water shortage could exist based upon the occurrence of one or more of the following
conditions:
1. A general water supply shortage due to increased demand or limited supplies.
2. Distribution or storage facilities of the Water Authority or other agencies become
inadequate.
3. A major failure of the supply, storage, and distribution facilities of MWD, Water
Authority, and/or Otay WD.
The Otay WD water conservation ordinance finds and determines that the conditions
prevailing in the San Diego County area require that the available water resources be put
to maximum beneficial use to the extent to which they are capable, and that the waste or
unreasonable use, or unreasonable method of use, of water be prevented and that the
conservation of such water be encouraged with a view to the maximum reasonable and
beneficial use thereof in the interests of the people of the Otay WD and for the public
welfare.
Otay WD is currently engaged in a number of conservation and water use efficiency activities.
Listed below are the current programs that are either on-going or were recently concluded:
• Residential Water Surveys: 1,349 completed since 1994
• Large Landscape Surveys: 194 completed since 1990
• Cash for Water Smart Plants Landscape Retrofit Program: over 217,600 square feet of
turf grass replaced with water wise plants since 2003
• Rotating Nozzles Rebated: 3,170
• Residential Weather-Based Irrigation Controller (WBIC) Incentive Program: 231
distributed or rebated since 2004
• Residential High Efficiency Clothes Washers: 7,187 rebates since 1994
• Residential ULFT/HET Rebate Program: 22,376 rebates provided between 1991-2010
• Outreach Efforts to Otay WD Customers - the Otay WD promotes its conservation
programs through staffing outreach events, bill inserts, articles in the Otay WD’s
quarterly customer Pipeline newsletter, direct mailings to Otay WD customers, the
Otay WD’s webpage and through the Water Authority’s marketing efforts.
• School Education Programs- the Otay WD funds school tours of the Water
Conservation Garden, co-funds Splash Labs, provides classroom water themed kits,
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maintains a library of school age appropriate water themed books, DVDs, and videos,
and runs both a school poster contest and a water themed photo contest.
• Water efficiency in new construction through Cal Green and the Model Water
Efficient Landscape Ordinance
• Focus on Commercial/Institutional/Industrial through Promoting MWD’s Save a Buck
(Commercial) Program in conjunction with the Otay WD’s own Commercial Process
Improvement Program
As a signatory to the MOU Regarding Urban Water Conservation in California, the Otay WD
is required to submit biannual reports that detail the implementation of current water
conservation practices. The Otay WD voluntarily agreed to implement the fourteen water
conservation BMP’s beginning in 1992. The Otay WD submits its report to the CUWCC
every two years. The Otay WD BMP Reports for 2005 to 2010, as well as the BMP Coverage
Report for 1999-2010, are included in the Otay WD 2010 UWMP.
The Planning Area 12 Freeway Commercial project will implement the CUWCC Best
Management Practices for water conservation such as installation of ultra low flow toilets,
development of a water conservation plan, and potential beneficial use of recycled water, all
of which are typical requirements of development projects within the City of Chula Vista.
Section 6 - Existing and Projected Supplies
The Otay WD currently does not have an independent raw or potable water supply source.
The Otay WD is a member public agency of the Water Authority. The Water Authority is a
member public agency of MWD. The statutory relationships between the Water Authority
and its member agencies, and MWD and its member agencies, respectively, establish the
scope of the Otay WD entitlement to water from these two agencies.
The Water Authority currently supplies Otay WD with 100 percent of its potable water,
through two delivery pipelines, referred to as Pipeline No. 4 and the Helix Flume. The Water
Authority in turn, currently purchases the majority of its water from MWD. Due to the Otay
WD reliance on these two agencies, this WSA&V Report includes referenced documents that
contain information on the existing and projected supplies, supply programs, and related
projects of the Water Authority and MWD. The Otay WD, Water Authority, and MWD are
actively pursuing programs and projects to diversify their water supply resources.
The description of local recycled water supplies available to the Otay WD is also discussed
below.
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6.1 Metropolitan Water District of Southern California 2005 Regional
Urban Water Management Plan
In November 2010, MWD adopted its 2010 Regional Urban Water Management Plan
(RUWMP). The 2010 RUWMP provides MWD’s member agencies, retail water utilities,
cities, and counties within its service area with, among other things, a detailed evaluation of
the supplies necessary to meet future demands, and an evaluation of reasonable and practical
efficient water uses, recycling, and conservation activities. During the preparation of the
2010 RUWMP, MWD also utilized the current SANDAG regional growth forecast in
calculating regional water demands for the Water Authority service area.
6.1.1 Availability of Sufficient Supplies and Plans for Acquiring
Additional Supplies
MWD is a wholesale supplier of water to its member public agencies and obtains its supplies
from two primary sources: the Colorado River, via the Colorado River Aqueduct (CRA),
which it owns and operates, and Northern California, via the State Water Project (SWP). The
2010 RUWMP documents the availability of these existing supplies and additional supplies
necessary to meet future demands.
6.1.1.1 MWD Supplies
MWD’s Integrated Resources Plan (IRP) identifies a mix of resources (imported and local)
that, when implemented, will provide 100 percent reliability for full-service demands through
the attainment of regional targets set for conservation, local supplies, State Water Project
supplies, Colorado River supplies, groundwater banking, and water transfers. The 2010
update to the IRP (2010 IRP Update) includes a planning buffer supply intended to mitigate
against the risks associated with implementation of local and imported supply programs. The
planning buffer identifies an additional increment of water that could potentially be developed
if other supplies are not implemented as planned. As part of implementation of the planning
buffer, MWD periodically evaluates supply development to ensure that the region is not under
or over-developing supplies. Managed properly, the planning buffer will help ensure that the
southern California region, including San Diego County, will have adequate supplies to meet
future demands.
In November 2010, MWD adopted its 2010 RUWMP in accordance with state law. The
resource targets included in the preceding 2010 IRP Update serve as the foundation for the
planning assumptions used in the 2010 RUWMP. MWD’s 2010 RUWMP contains a water
supply reliability assessment that includes a detailed evaluation of the supplies necessary to
meet demands over a 25-year period in average, single dry year, and multiple dry year
periods. As part of this process, MWD also uses the current SANDAG regional growth
forecast in calculating regional water demands for the Water Authority’s service area.
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As stated in MWD’s 2010 RUWMP, that plan may be used as a source document for meeting
the requirements of SB 610 and SB 221 until the next scheduled update is completed in 2015.
The 2005 RUWMP includes a “Justifications for Supply Projections” in Appendix A.3, that
provides detailed documentation of the planning, legal, financial, and regulatory basis for
including each source of supply in the plan. A copy of MWD’s 2010 RUWMP can be found
on the World Wide Web at the following site address:
http://www.mwdh2o.com/mwdh2o/pages/yourwater/RUWMP/RUWMP_2010.pdf
Water supply agencies throughout California continue to face climatological, environmental,
legal, and other challenges that impact water source supply conditions, such as the court
rulings regarding the Sacramento-San Joaquin Delta and the current western states drought
conditions. Challenges such as these essentially always will be present. The regional water
supply agencies, the Water Authority and MWD, along with Otay WD nevertheless fully
intend to have sufficient, reliable supplies to serve demands.
6.1.2 Metropolitan Capital Investment Plan
As part of MWD’s annual budget approval process, a Capital Investment Plan is prepared.
The cost, purpose, justification, status, progress, etc. of MWD’s infrastructure projects to
deliver existing and future supplies are documented in the Capital Investment Plan. The
financing of these projects is addressed as part of the annual budget approval process.
MWD’s Capital Investment Plan includes a series of projects identified from MWD studies of
projected water needs, which, when considered along with operational demands on aging
facilities and new water quality regulations, identify the capital projects needed to maintain
infrastructure reliability and water quality standards, improve efficiency, and provide future
cost savings. All projects within the Capital Investment Plan are evaluated against an
objective set of criteria to ensure they are aligned with the MWD’s goals of supply reliability
and quality.
6.2 San Diego County Water Authority Regional Water Supplies
The Water Authority has adopted plans and is taking specific actions to develop adequate
water supplies to help meet existing and future water demands within the San Diego region.
This section contains details on the supplies being developed by the Water Authority. A
summary of recent actions pertaining to development of these supplies includes:
• In accordance with the Urban Water Management Planning Act, the Water Authority
adopted their 2010 UWMP in June 2011. The updated Water Authority 2010 UWMP
identifies a diverse mix of local and imported water supplies to meet future demands.
A copy of the updated Water Authority 2010 UWMP can be found on the internet at
http://www.sdcwa.org/2010-urban-water-management-plan
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• Deliveries of conserved agricultural water from the Imperial Irrigation District (IID) to
San Diego County have increased annually since 2003, with 70,000 ac-ft of deliveries in
Fiscal Year (FY) 2010. These quantities will increase annually to 200,000 ac-ft/yr by
2021, and then remain fixed for the duration of the transfer agreement.
• As part of the October 2003 Quantification Settlement Agreement (QSA), the Water
Authority was assigned MWD’s rights to 77,700 ac-ft/yr of conserved water from the
All-American Canal (AAC) and Coachella Canal (CC) lining projects. Deliveries of
this conserved water from the CC reached the region in 2007 and deliveries from the
AAC reached the region in 2010. Expected supplies from the canal lining projects are
considered verifiable Water Authority supplies.
Through implementation of the Water Authority and member agency planned supply projects,
along with reliable imported water supplies from MWD, the region anticipates having
adequate supplies to meet existing and future water demands.
To ensure sufficient supplies to meet projected growth in the San Diego region, the Water
Authority uses the SANDAG most recent regional growth forecast in calculating regional
water demands. The SANDAG regional growth forecast is based on the plans and policies of
the land-use jurisdictions with San Diego County. The existing and future demands of the
member agencies are included in the Water Authority’s projections.
6.2.1 Availability of Sufficient Supplies and Plans for Acquiring
Additional Supplies
The Water Authority currently obtains imported supplies from MWD, conserved water from
the AAC and CC lining projects, and an increasing amount of conserved agricultural water
from IID. Of the twenty-seven member agencies that purchase water supplies from MWD,
the Water Authority is MWD’s largest customer.
Section 135 of MWD’s Act defines the preferential right to water for each of its member
agencies. As calculated by MWD, the Water Authority’s preferential right as of December
11, 2012 is 17.22 percent of MWD’s supply, while the Water Authority accounted for
approximately 25 percent of MWD’s total revenue. Under preferential rights, MWD could
allocate water without regard to historic water purchases or dependence on MWD. The Water
Authority and its member agencies are taking measures to reduce dependence on MWD
through development of additional supplies and a water supply portfolio that would not be
jeopardized by a preferential rights allocation. MWD has stated, consistent with Section 4202
of its Administrative Code that it is prepared to provide the Water Authority’s service area
with adequate supplies of water to meet expanding and increasing needs in the years ahead.
When and as additional water resources are required to meet increasing needs, MWD stated it
will be prepared to deliver such supplies. In Section ES-5 of their 2010 RUWMP, MWD
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states that MWD has supply capacities that would be sufficient to meet expected demands
from 2015 through 2035. MWD has plans for supply implementation and continued
development of a diversified resource mix including programs in the Colorado River
Aqueduct, State Water Project, Central Valley Transfers, local resource projects, and in-
region storage that enables the region to meet its water supply needs.
The Water Authority has made large investments in MWD’s facilities and will continue to
include imported supplies from MWD in the future resource mix. As discussed in the Water
Authority’s 2010 UWMP, the Water Authority and its member agencies are planning to
diversify the San Diego regions supply portfolio and reduce purchases from MWD.
As part of the Water Authority’s diversification efforts, the Water Authority is now taking
delivery of conserved agricultural water from IID and water saved from the AAC and CC
lining projects. The CC lining project is complete and the Water Authority has essentially
completed construction of the AAC lining project. Table 6 summarizes the Water Authority’s
supply sources with detailed information included in the sections to follow. Deliveries from
MWD are also included in Table 6, which is further discussed in Section 6.1 above. The
Water Authority’s member agencies provided the verifiable local supply targets for
groundwater, groundwater recovery, recycled water, and surface water, which are discussed in
more detail in Section 5 of the Water Authority’s 2010 UWMP.
Table 6
Projected Verifiable Water Supplies – Water Authority Service Area
Normal Year (AF)
Water Supply Sources 2015 2020 2025 2030 2035
Water Authority Supplies (2)
MWD Supplies 358,189 230,601 259,694 293,239 323,838
Water Authority/IID Transfer 100,000 190,000 200,000 200,000 200,000
AAC and CC Lining Projects 80,200 80,200 80,200 80,200 80,200
Proposed Regional Seawater
Desalination (1) 0 56,000 56,000 56,000 56,000
Member Agency Supplies
Surface Water 48,206 47,940 47,878 47,542 47,289
Water Recycling 38,660 43,728 46,603 48,278 49,998
Groundwater 11,710 11,100 12,100 12,840 12,840
Groundwater Recovery 10,320 15,520 15,520 15,520 15,520
Total Projected Supplies 647,285 675,089 717,995 753,619 785,685
Source: Water Authority 2010 Urban Water Management Plan – Table 9-1.
Note 1: On November 29, 2012, the Water Authority approved a water purchase agreement with Poseidon for
48,000 AFY with the right to purchase up to 56,000 AFY
Note 2: The Water Authority’s 2010 WWMP includes water use associated with accelerated forecasted
development including the Planning Area 12 Freeway Commercial and the 127 AFY additional demand.
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Section 5 of the Water Authority’s 2010 UWMP also includes a discussion on the local
supply target for seawater desalination. Seawater desalination supplies represent a significant
future local resource in the Water Authority’s service area.
The Carlsbad Desalination Project (Project) is a fully-permitted seawater desalination plant
and conveyance pipeline designed to provide a highly reliable local supply of up to 56,000 AF
per year for the region. In 2020, the Project would account for approximately 8% of the total
projected regional supply and 30% of all locally generated water in San Diego County. If the
project becomes operational in 2016, it will more than double the amount of local supplies
developed in the region since 1991. The desalination plant itself will be fully financed, built,
and operated by Poseidon. The Water Authority will purchase water from the plant under a
water purchase agreement. The new pipeline connecting the desalination plant with the Water
Authority’s Second Aqueduct will be owned and operated by the Water Authority, but
responsibility for design and construction will reside with Poseidon through a separate
Design-Build Agreement. The Water Authority will be responsible for aqueduct
improvements, including the relining and rehabilitation of Pipeline 3 to accept desalinated
water under higher operating pressures, modifications to the San Marcos Vent that allows the
flow of water between Pipelines 3 and 4, and improvements at the Twin Oaks Valley Water
Treatment Plant necessary to integrate desalinated water into the Water Authority’s system
for optimal distribution to member agencies.
On July 22, 2010, the Board approved a Term Sheet between the Water Authority and
Poseidon Resources that outlined the key terms and conditions that would be detailed and
incorporated in a comprehensive Water Purchase Agreement (WPA). Beginning in October
2011 and under the direction of the Board’s Carlsbad Desalination Project Advisory Group,
staff began developing and negotiating with Poseidon a WPA consistent with the July 22,
2010 Board approved Term Sheet. The July 2010 Term Sheet also identified specific
conditions precedent to Board consideration of the WPA. On November 29, 2012, the Water
Authority Board adopted a resolution approving the Water Purchase Agreement (WPA).
The Water Authority’s existing and planned supplies from the IID transfer and canal lining
projects are considered “drought-proof” supplies and should be available at the yields shown
in Table 6 in normal water year supply and demand assessment. Single dry year and multiple
dry year scenarios are discussed in more detail in Section 9 of the Water Authority’s 2010
UWMP.
As part of preparation of a written water supply assessment and/or verification report, an
agency’s shortage contingency analysis should be considered in determining sufficiency of
supply. Section 11 of the Water Authority’s 2010 UWMP contains a detailed shortage
contingency analysis that addresses a regional catastrophic shortage situation and drought
management. The analysis demonstrates that the Water Authority and its member agencies,
through the Emergency Response Plan, Emergency Storage Project, and Drought
Management Plan (DMP) are taking actions to prepare for and appropriately handle an
interruption of water supplies. The DMP, adopted in May 2006, provides the Water Authority
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and its member agencies with a series of potential actions to take when faced with a shortage
of imported water supplies from MWD due to prolonged drought or other supply shortfall
conditions. The actions will help the region avoid or minimize the impacts of shortages and
ensure an equitable allocation of supplies throughout the San Diego region.
6.2.1.1 Water Authority-Imperial Irrigation District Water Conservation
and Transfer Agreement
The QSA was signed in October 2003, and resolves long-standing disputes regarding priority
and use of Colorado River water and creates a baseline for implementing water transfers. With
approval of the QSA, the Water Authority and IID were able to implement their Water
Conservation and Transfer Agreement. This agreement not only provides reliability for the San
Diego region, but also assists California in reducing its use of Colorado River water to its legal
allocation.
On April 29, 1998, the Water Authority signed a historic agreement with IID for the long-term
transfer of conserved Colorado River water to San Diego County. The Water Authority-IID
Water Conservation and Transfer Agreement (Transfer Agreement) is the largest agriculture-to-
urban water transfer in United States history. Colorado River water will be conserved by
Imperial Valley farmers who voluntarily participate in the program and then transferred to the
Water Authority for use in San Diego County.
Implementation Status
On October 10, 2003, the Water Authority and IID executed an amendment to the original 1998
Transfer Agreement. This amendment modified certain aspects of the 1998 Agreement to be
consistent with the terms and conditions of the QSA and related agreements. It also modified
other aspects of the agreement to lessen the environmental impacts of the transfer of conserved
water. The amendment was expressly contingent on the approval and implementation of the
QSA, which was also executed on October 10, 2003.
On November 5, 2003, IID filed a complaint in Imperial County Superior Court seeking
validation of 13 contracts associated with the Transfer Agreement and the QSA. Imperial
County and various private parties filed additional suits in Superior Court, alleging violations of
the California Environmental Quality Act (CEQA), the California Water Code, and other laws
related to the approval of the QSA, the water transfer, and related agreements. The lawsuits were
coordinated for trial. The IID, Coachella Valley Water District, MWD, the Water Authority, and
state are defending these suits and coordinating to seek validation of the contracts. In January
2010, a California Superior Court judge ruled that the QSA and 11 related agreements were
invalid, because one of the agreements created an open-ended financial obligation for the state,
in violation of California’s constitution. The QSA parties appealed this decision and are
continuing to seek validation of the contracts. The appeal is currently pending in the Third
District Court of Appeal. A stay of the trial court judgment has been issued during the appeal.
Implementation of the transfer provisions is proceeding during litigation.
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Expected Supply
Deliveries into San Diego County from the transfer began in 2003 with an initial transfer of
10,000 AFY. The Water Authority received increasing amounts of transfer water each year,
according to a water delivery schedule contained in the transfer agreement. In 2012, the
Water Authority will receive 90,000 AFY. The quantities will increase annually to 200,000
AFY by 2021 then remain fixed for the duration of the transfer agreement. The initial term of
the Transfer Agreement is 45 years, with a provision that either agency may extend the
agreement for an additional 30-year term.
During dry years, when water availability is low, the conserved water will be transferred under
the IID Colorado River rights, which are among the most senior in the Lower Colorado River
Basin. Without the protection of these rights, the Water Authority could suffer delivery
cutbacks. In recognition for the value of such reliability, the 1998 contract required the Water
Authority to pay a premium on transfer water under defined regional shortage circumstances.
The shortage premium period duration is the period of consecutive days during which any of the
following exist: 1) a Water Authority shortage; 2) a shortage condition for the Lower Colorado
River as declared by the Secretary; and 3) a Critical Year. Under terms of the October 2003
amendment, the shortage premium will not be included in the cost formula until Agreement Year
16.
Transportation
The Water Authority entered into a water exchange agreement with MWD on October 10, 2003,
to transport the Water Authority-IID transfer water from the Colorado River to San Diego
County. Under the exchange agreement, MWD will take delivery of the transfer water through
its Colorado River Aqueduct. In exchange, MWD will deliver to the Water Authority a like
quantity and quality of water. The Water Authority will pay MWD’s applicable wheeling rate
for each acre-foot of exchange water delivered. According to the water exchange agreement,
MWD will make delivery of the transfer water for 35 years, unless the Water Authority elects to
extend the agreement another 10 years for a total of 45 years.
Cost/Financing
The costs associated with the transfer are financed through the Water Authority’s rates and
charges. In the agreement between the Water Authority and IID, the price for the transfer water
started at $258 per acre-feet and increased by a set amount for the first seven years. In December
2009, the Water Authority and IID executed a fifth amendment to the water transfer agreement
that sets the price per acre-feet for transfer water for calendar years 2010 through 2015,
beginning at $405 per acre-feet in 2010 and increasing to $624 per acre-feet in 2015. For
calendar years 2016 through 2034, the unit price will be adjusted using an agreed-upon index.
The amendment also required the Water Authority to pay IID $6 million at the end of calendar
year 2009 and another $50 million on or before October 1, 2010, provided that a transfer
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stoppage is not in effect as a result of a court order in the QSA coordinated cases. Beginning in
2035, either the Water Authority or IID can, if certain criteria are met, elect a market rate price
through a formula described in the water transfer agreement.
The October 2003 exchange agreement between MWD and the Water Authority set the initial
cost to transport the conserved water at $253 per acre-feet. Thereafter, the price is set to be equal
to the charge or charges set by MWD’s Board of Directors pursuant to applicable laws and
regulation, and generally applicable to the conveyance of water by MWD on behalf of its
member agencies. The transportation charge in 2010 was $314 per acre-feet.
The Water Authority is providing $10 million to help offset potential socioeconomic impacts
associated with temporary land fallowing. IID will credit the Water Authority for these funds
during years 16 through 45. In 2007, the Water Authority prepaid IID an additional $10 million
for future deliveries of water. IID will credit the Water Authority for this up-front payment
during years 16 through 30.
As part of implementation of the QSA and water transfer, the Water Authority also entered into
an environmental cost sharing agreement. Under this agreement the Water Authority is
contributing a total of $64 million to fund environmental mitigation projects and the Salton Sea
Restoration Fund.
Written Contracts or Other Proof
The supply and costs associated with the transfer are based primarily on the following
documents:
Agreement for Transfer of Conserved Water by and between IID and the Water Authority
(April 29, 1998). This Agreement provides for a market-based transaction in which the Water
Authority would pay IID a unit price for agricultural water conserved by IID and transferred
to the Water Authority.
Revised Fourth Amendment to Agreement between IID and the Water Authority for Transfer of
Conserved Water (October 10, 2003). Consistent with the executed Quantification Settlement
Agreement (QSA) and related agreements, the amendments restructure the agreement and
modify it to minimize the environmental impacts of the transfer of conserved water to the Water
Authority.
Amended and Restated Agreement between MWD and Water Authority for the Exchange of
Water (October 10, 2003). This agreement was executed pursuant to the QSA and provides for
delivery of the transfer water to the Water Authority.
Environmental Cost Sharing, Funding, and Habitat Conservation Plan Development
Agreement among IID, Coachella Valley Water District (CVWD), and Water Authority
(October 10, 2003). This Agreement provides for the specified allocation of QSA-related
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environmental review, mitigation, and litigation costs for the term of the QSA, and for
development of a Habitat Conservation Plan.
Quantification Settlement Agreement Joint Powers Authority Creation and Funding
Agreement (October 10, 2003). The purpose of this agreement is to create and fund the QSA
Joint Powers Authority and to establish the limits of the funding obligation of CVWD, IID,
and Water Authority for environmental mitigation and Salton Sea restoration pursuant to SB
654 (Machado).
Fifth Amendment to Agreement Between Imperial Irrigation District and San Diego County
Water Authority for Transfer of Conserved Water (December 21, 2009). This agreement
implements a settlement between the Water Authority and IID regarding the base contract price
of transferred water.
Federal, State, and Local Permits/Approvals
Federal Endangered Species Act Permit. The U.S. Fish and Wildlife Service (USFWS) issued a
Biological Opinion on January 12, 2001, that provides incidental take authorization and certain
measures required to offset species impacts on the Colorado River regarding such actions.
State Water Resources Control Board (SWRCB) Petition. SWRCB adopted Water Rights Order
2002-0016 concerning IID and Water Authority’s amended joint petition for approval of a long-
term transfer of conserved water from IID to the Water Authority and to change the point of
diversion, place of use, and purpose of use under Permit 7643.
Environmental Impact Report (EIR) for Conservation and Transfer Agreement. As lead agency,
IID certified the Final EIR for the Conservation and Transfer Agreement on June 28, 2002.
U. S. Fish and Wildlife Service Draft Biological Opinion and Incidental Take Statement on the
Bureau of Reclamation's Voluntary Fish and Wildlife Conservation Measures and Associated
Conservation Agreements with the California Water Agencies (12/18/02). The U. S. Fish and
Wildlife Service issued the biological opinion/incidental take statement for water transfer
activities involving the Bureau of Reclamation and associated with IID/other California water
agencies' actions on listed species in the Imperial Valley and Salton Sea (per the June 28, 2002
EIR).
Addendum to EIR for Conservation and Transfer Agreement. IID as lead agency and Water
Authority as responsible agency approved addendum to EIR in October 2003.
Environmental Impact Statement (EIS) for Conservation and Transfer Agreement. Bureau of
Reclamation issued a Record of Decision on the EIS in October 2003.
CA Department of Fish and Game California Endangered Species Act Incidental Take Permit
#2081-2003-024-006). The California Department of Fish and Game issued this permit
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(10/22/04) for potential take effects on state-listed/fully protected species associated with
IID/other California water agencies' actions on listed species in the Imperial Valley and Salton
Sea (per the June 28, 2002 EIR).
California Endangered Species Act (CESA) Permit. A CESA permit was issued by California
Department of Fish and Game (CDFG) on April 4, 2005, providing incidental take authorization
for potential species impacts on the Colorado River.
6.2.1.2 All-American Canal and Coachella Canal Lining Projects
As part of the QSA and related contracts, the Water Authority was assigned MWD’s rights to
77,700 ac-ft/yr of conserved water from projects that will line the All-American Canal (AAC)
and Coachella Canal (CC). The projects will reduce the loss of water that currently occurs
through seepage, and the conserved water will be delivered to the Water Authority. This
conserved water will provide the San Diego region with an additional 8.5 million acre-feet
over the 110-year life of the agreement.
Implementation Status
The CC lining project began in November 2004 and was completed in 2006. Deliveries of
conserved water to the Water Authority began in 2007. The project constructed a 37-mile
parallel canal adjacent to the CC. The AAC lining project was begun in 2005 and was
completed in 2010. The lining project constructed a concrete-lined canal parallel to 24 miles
of the existing AAC from Pilot Knob to Drop 3.
In July 2005, a lawsuit (CDEM v United States, Case No. CV-S-05-0870-KJD-PAL) was filed
in the U. S. District Court for the District of Nevada on behalf of U.S. and Mexican groups
challenging the lining of the AAC. The lawsuit, which names the Secretary of the Interior as
a defendant, claims that seepage water from the canal belongs to water users in Mexico.
California water agencies note that the seepage water is actually part of California's Colorado
River allocation and not part of Mexico's allocation. The plaintiffs also allege a failure by the
United States to comply with environmental laws. Federal officials have stated that they
intend to vigorously defend the case.
Expected Supply
The AAC lining project makes 67,700 AFof Colorado River water per year available for
allocation to the Water Authority and San Luis Rey Indian water rights settlement parties.
The CC lining project makes 26,000 AFof Colorado River water each year available for
allocation. The 2003 Allocation Agreement provides for 16,000 AFY of conserved canal
lining water to be allocated to the San Luis Rey Indian Water Rights Settlement Parties. The
remaining amount, 77,700 AFY, is to be available to the Water Authority, with up to an
additional 4,850 AFY available to the Water Authority depending on environmental
requirements from the CC lining project. For planning purposes, the Water Authority
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assumes that 2,500 AF of the 4,850 AF will be available each year for delivery, for a total of
80,200 AFY of that supply. According to the Allocation Agreement, IID has call rights to a
portion (5,000 AFY) of the conserved water upon termination of the QSA for the remainder
of the 110 years of the Allocation Agreement and upon satisfying certain conditions. The
term of the QSA is for up to 75 years.
Transportation
The October 10, 2003, Exchange Agreement between the Water Authority and MWD also
provides for the delivery of the conserved water from the canal lining projects. The Water
Authority will pay MWD’s applicable wheeling rate for each acre-foot of exchange water
delivered. In the Agreement, MWD will deliver the canal lining water for the term of the
Allocation Agreement (110 years).
Cost/Financing
Under California Water Code Section 12560 et seq., the Water Authority received $200
million in state funds for construction of the canal lining projects. In addition, $20 million
was made available from Proposition 50 and $36 million from Proposition 84. The Water
Authority was responsible for additional expenses above the funds provided by the state.
The rate to be paid to transport the canal lining water will be equal to the charge or charges set
by MWD’s Board of Directors pursuant to applicable law and regulation and generally
applicable to the conveyance of water by MWD on behalf of its member agencies.
In accordance with the Allocation Agreement, the Water Authority will also be responsible
for a portion of the net additional Operation, Maintenance, and Repair (OM&R) costs for the
lined canals. Any costs associated with the lining projects as proposed, are to be financed
through the Water Authority’s rates and charges.
Written Contracts or Other Proof
The expected supply and costs associated with the lining projects are based primarily on the
following documents:
U.S. Public Law 100-675 (1988). Authorized the Department of the Interior to reduce seepage
from the existing earthen AAC and CC. The law provides that conserved water will be made
available to specified California contracting water agencies according to established priorities.
California Department of Water Resources - MWD Funding Agreement (2001). Reimburse
MWD for project work necessary to construct the lining of the CC in an amount not to exceed
$74 million. Modified by First Amendment (2004) to replace MWD with the Authority.
Modified by Second Amendment (2004) to increase funding amount to $83.65 million, with
addition of funds from Proposition 50.
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California Department of Water Resources - IID Funding Agreement (2001). Reimburse IID for
project work necessary to construct a lined AAC in an amount not to exceed $126 million.
MWD - CVWD Assignment and Delegation of Design Obligations Agreement (2002). Assigns
design of the CC lining project to CVWD.
MWD - CVWD Financial Arrangements Agreement for Design Obligations (2002). Obligates
MWD to advance funds to CVWD to cover costs for CC lining project design and CVWD to
invoice MWD to permit the Department of Water Resources to be billed for work completed.
Allocation Agreement among the United States of America, The MWD Water District of
Southern California, Coachella Valley Water District, Imperial Irrigation District, San Diego
County Water Authority, the La Jolla, Pala, Pauma, Rincon, and San Pasqual Bands of Mission
Indians, the San Luis Rey River Indian Water Authority, the City of Escondido, and Vista
Irrigation District (October 10, 2003). This agreement includes assignment of MWD’s rights
and interest in delivery of 77,700 AFof Colorado River water previously intended to be delivered
to MWD to the Water Authority. Allocates water from the AAC and CC lining projects for at
least 110 years to the Water Authority, the San Luis Rey Indian Water Rights Settlement Parties,
and IID, if it exercises its call rights.
Amended and Restated Agreement between MWD and Water Authority for the Exchange of
Water (October 10, 2003). This agreement was executed pursuant to the QSA and provides for
delivery of the conserved canal lining water to the Water Authority.
Agreement between MWD and Water Authority regarding Assignment of Agreements related to
the AAC and CC Lining Projects. This agreement was executed in April 2004 and assigns
MWD's rights to the Water Authority for agreements that had been executed to facilitate funding
and construction of the AAC and CC lining projects.
Assignment and Delegation of Construction Obligations for the Coachella Canal Lining Project
under the Department of Water Resources Funding Agreement No. 4600001474 from the San
Diego County Water Authority to the Coachella Valley Water District, dated September 8, 2004.
Agreement Regarding the Financial Arrangements between the San Diego County Water
Authority and Coachella Valley Water District for the Construction Obligations for the
Coachella Canal Lining Project, dated September 8, 2004.
Agreement No. 04-XX-30-W0429 Among the United States Bureau of Reclamation, the
Coachella Valley Water District, and the San Diego County Water Authority for the
Construction of the Coachella Canal Lining Project Pursuant to Title II of Public Law 100-675,
dated October 19, 2004.
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California Water Code Section 12560 et seq. This Water Code Section provides for $200
million to be appropriated to the Department of Water Resources to help fund the canal lining
projects in furtherance of implementing California’s Colorado River Water Use Plan.
California Water Code Section 79567. This Water Code Section identifies $20 million as
available for appropriation by the California Legislature from the Water Security, Clean
Drinking Water, Coastal, and Beach Protection Fund of 2002 (Proposition 50) to DWR for
grants for canal lining and related projects necessary to reduce Colorado River water use.
According to the Allocation Agreement, it is the intention of the agencies that those funds will be
available for use by the Water Authority, IID, or CVWD for the AAC and CC lining projects.
California Public Resources Code Section 75050(b)(1). This section identifies up to $36 million
as available for water conservation projects that implement the Allocation Agreement as defined
in the Quantification Settlement Agreement.
Federal, State, and Local Permits/Approvals
AAC Lining Project Final EIS/EIR (March 1994). A final EIR/EIS analyzing the potential
impacts of lining the AAC was completed by the Bureau of Reclamation (Reclamation) in March
1994. A Record of Decision was signed by Reclamation in July 1994, implementing the
preferred alternative for lining the AAC. A re-examination and analysis of these environmental
compliance documents by Reclamation in November 1999 determined that these documents
continued to meet the requirements of the NEPA and the CEQA and would be valid in the future.
CC Lining Project Final EIS/EIR (April 2001). The final EIR/EIS for the CC lining project was
completed in 2001. Reclamation signed the Record of Decision in April 2002. An amended
Record of Decision has also been signed to take into account revisions to the project description.
Mitigation, Monitoring, and Reporting Program for Coachella Canal Lining Project, SCH
#1990020408; prepared by Coachella Valley Water District, May 16, 2001.
Environmental Commitment Plan for the Coachella Canal Lining Project, approved by the US
Bureau of Reclamation (Boulder City, NV) on March 4, 2003.
Environmental Commitment Plan and Addendum to the All-American Canal Lining Project
EIS/EIR California State Clearinghouse Number SCH 90010472 (June 2004, prepared by
IID).
Addendum to Final EIS/EIR and Amendment to Environmental Commitment Plan for the
All-American Canal Lining Project (approved June 27, 2006, by IID Board of Directors).
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6.2.1.3 Carlsbad Seawater Desalination Project
Development of seawater desalination in San Diego County will assist the region in
diversifying its water resources, reduce dependence on imported supplies, and provide a new
drought-proof, locally treated water supply. The Carlsbad Desalination Project is a fully-
permitted seawater desalination plant and conveyance pipeline currently being developed by
Poseidon, a private investor–owned company that develops water and wastewater
infrastructure. The project, located at the Encina Power Station in Carlsbad, has been in
development since 1998 and was incorporated into the Water Authority’s 2003 Water
Facilities Master Plan and the 2010 UWMP. The Carlsbad Desalination Project has obtained
all required permits and environmental clearances and, when completed, will provide a highly
reliable local supply of 48,000 to 56,000 AFY for the region.
Implementation Status
The Project has obtained all required permits and environmental clearances, including the
following:
• National Pollutant Discharge Elimination System (NPDES) Discharge Permit
(Regional Water Quality Control Board)
• Conditional Drinking Water Permit (California Department of Health Services)
• State Lands Commission Lease (State Lands Commission)
• Coastal Development Permit (California Coastal Commission)
IDE Technologies, a worldwide leader in the design, construction, and operation of
desalination plants, was selected by Poseidon to be the desalination process contractor for the
Project.
On July 22, 2010, the Board approved a Term Sheet between the Water Authority and
Poseidon Resources that outlined the key terms and conditions that would be detailed and
incorporated in a comprehensive Water Purchase Agreement (WPA). Beginning in October
2011 and under the direction of the Board’s Carlsbad Desalination Project Advisory Group,
staff began developing and negotiating with Poseidon a WPA consistent with the July 22,
2010 Board approved Term Sheet. The July 2010 Term Sheet also identified specific
conditions precedent to Board consideration of the WPA.
On November 29, 2012, the Water Authority Board adopted a resolution approving the
Design-Build Agreement between the Water Authority and Poseidon. The Design-Build
Agreement establishes the commercial and technical terms for implementation of the
desalination product pipeline improvements. These improvements consist of an approximate
10-mile long, 54-inch diameter conveyance pipeline connecting the Desalination Plant to the
Water Authority’s Second Aqueduct. The pipeline will generally be constructed within
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improved streets in commercial and industrial areas in the cities of Carlsbad, Vista, and San
Marcos. The Water Authority will own the Project Water Pipeline Improvements upon
execution of the Design-Build Agreement, and upon completion and acceptance of
construction, the Water Authority will assume operational control of all pipeline
improvements.
Expected Supply
When completed, the Project will provide a highly reliable local supply of 48,000 to 56,000
AFY of supply for the region, available in both normal and dry hydrologic conditions. In
2020, the Project would account for approximately 8% of the total projected regional supply
and 30% of all locally generated water in San Diego County. When the project becomes
operational in 2016, it will more than double the amount of local supplies developed in the
region since 1991.
Transportation
On November 29, 2012, the Water Authority Board adopted a resolution approving the
Design-Build Agreement between the Water Authority and Poseidon. The Design-Build
Agreement establishes the commercial and technical terms for implementation of the
desalination product pipeline improvements. These improvements consist of an approximate
10-mile long, 54-inch diameter conveyance pipeline connecting the Desalination Plant to the
Water Authority’s Second Aqueduct. The pipeline will generally be constructed within
improved streets in commercial and industrial areas in the cities of Carlsbad, Vista, and San
Marcos. The Water Authority will own the Project Water Pipeline Improvements upon
execution of the Design-Build Agreement, and upon completion and acceptance of
construction, the Water Authority will assume operational control of all pipeline
improvements.
The Water Authority will be responsible for aqueduct improvements, including the relining
and rehabilitation of Pipeline 3 to accept desalinated water under higher operating pressures,
modifications to the San Marcos Vent that allows the flow of water between Pipelines 3 and
4, and improvements at the Twin Oaks Valley Water Treatment Plant necessary to integrate
desalinated water into the Water Authority’s system for optimal distribution to member
agencies.
Cost/Financing
The plant and the offsite pipeline will be financed through tax exempt government bonds
issued for the Water Authority by the California Pollution Control Financing Authority
(CPCFA). On November 29, 2012, the Water Authority Board adopted a resolution
approving agreements to accomplish tax exempt project financing through the CPCFA.
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A preliminary September 2012 unit cost estimate was $2,300/AF. The Water Authority’s
water purchase costs will be financed through Water Authority rates and charges. Poseidon is
financing the capital cost of the Project with a combination of private equity and tax-exempt
Private Activity Bonds.
Written Contracts or Other Proof
The expected supply and costs associated with the Carlsbad Desalination Project are based
primarily on the following documents:
Development Agreement between City of Carlsbad and Poseidon (October 2009). A
Development Agreement between Carlsbad and Poseidon was executed on October 5, 2009
Agreement of Term Sheet between the Water Authority and Poseidon Resources (July 2010).
The Water Authority approved the Term Sheet at its July 2010 Board Meeting. The Term
Sheet outlines the terms and conditions of a future Water Purchase Agreement with Poseidon
and allocates the resources to prepare the draft Water Purchase Agreement.
Federal, State, and Local Permits/Approvals
Carlsbad Desalination Project Final EIR
The City of Carlsbad, acting as lead agency for Carlsbad Seawater Desalination Plant and
appurtenant facilities proposed by Poseidon (the “Project”) prepared an Environmental Impact
Report for the Project in compliance with the California Environmental Quality Act
(“CEQA”), which the City of Carlsbad certified on June 13, 2006.
http://www.sdcwa.org/rwfmp-peir
The City of Carlsbad prepared an Addendum to the Carlsbad EIR (“Addendum”) which was
adopted on September 15, 2009, and reflects minor and immaterial design modifications to
the Project site plan, appurtenant facilities, and water delivery pipeline network.
The environmental documents and permits are found at the following link:
http://www.carlsbad-desal.com/EIR.asp
The Water Authority, as a Responsible Agency under CEQA, adopted a resolution on
November 29, 2012 approving a Second Addendum to the Carlsbad Precise Development
Plan and Desalination Plant Final EIR and First Addendum that evaluates the environmental
impacts of several proposed facility modifications that are necessary to allow for operational
flexibility and efficiency in receiving and delivering desalination product water. These
modifications include: a realignment of a portion of the approved desalination pipeline, the
addition of chemical injection at the approved San Marcos Aqueduct Connection site, the
relining of a portion of Pipeline 3, the addition of a pipeline and expanded flow control
facility at Twin Oaks Valley Water Treatment Plant and a replacement of the San Marcos
Vent on Pipeline 4. Impacts associated with the proposed modifications would not result in a
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new significant impact or substantial increase in the severity of impacts previously evaluated
in the Carlsbad FEIR or the First Addendum. There are no substantial changes to the
circumstances under which the project will be undertaken, and no new information of
substantial importance that was not known and could not have been known when the FEIR
was certified and the First Addendum was approved, and that have since been identified.
Therefore, the Second Addendum satisfies the CEQA requirements for the proposed project
modifications.
Regional Water Facilities Master Plan EIR
On November 20, 2003, the Water Authority Board of Directors adopted Resolution No.
2003-34 certifying the Final Program Environmental Impact Report (State Clearinghouse No.
2003021052) for the Water Authority’s Regional Water Facilities Master Plan Project (the
“Master Plan EIR”), which evaluated, among other things, potential growth inducing impacts
associated with new water supplies to the region including, but not limited to, up to 150
million gallons per day (mgd) of new supplies from seawater desalination. This certification
included a 50 mgd plant located in the City of Carlsbad.
The environmental documents and permits are found at the following link:
http://www.sdcwa.org/rwfmp-peir
Sub regional Natural Community Conservation Plan/Habitat Conservation Plan (NCCP/HCP)
On December 8, 2010, the Board adopted Resolution No. 2010-18 certifying a Final
environmental Impact Report/Environmental Impact Statement for the San Diego County
Water Authority Subregional Natural Community Conservation Plan/Habitat Conservation
Plan (State Clearinghouse No. 2003121012) (the “Habitat Conservation Plan EIR/EIS”),
which Plan was implemented on December 28, 2011.
The environmental documents and permits are found at the following link:
http://www.sdcwa.org/nccp-hcp
Twin Oaks Valley Water Treatment Plant EIR
On September 8, 2005, the Board adopted Resolution No. 2005-31 certifying a Final
Environmental Impact Report for the Twin Oaks Valley Water Treatment Plant Project (State
Clearinghouse No. 20040071034) (the “Twin Oaks EIR”), which project was constructed as a
100 mgd submerged membrane water treatment facility, including treated water holding tanks
and distribution pipelines and other facilities, consistent with the conditions and mitigation
measures included in the Twin Oaks EIR.
http://www.sdcwa.org/twin-oaks-valley-treatment-plant-final-eir
2010 Urban Water Management Plan
http://www.sdcwa.org/2010-urban-water-management-plan
Drinking Water Permit (October 2006). The California Department of Health Services
approved the Conditional Drinking Water Permit on October 19, 2006.
Coastal Development Permit
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The Project is fully permitted, with the California Coastal Commission issuing the following
permits: Coastal Development Permit No. E-06-013, Energy Minimization and Greenhouse
Gas Reduction Plan (December 2008), Marine Life Mitigation Plan (December 2008),
Erosion Control Plan (November 2009), Landscaping Plan (September 2009), Lighting Plan
(August 2009), Construction Plan (September 2009), and Water Pollution Control Plan
(September 2009); the California Department of Public Health issuing Conceptual Approval
Letter dated October 19, 2006; the California Regional Water Quality Control Board issuing
NPDES Permit No. CA0109223 and Notice of Intent to Discharge for Storm Water
Associated with Construction Activities (WDID #9 37C361181); the City of Carlsbad issuing
Redevelopment Permit RP 05-12(A), Specific Plan 144 with Amendment 144(J) SP 144(J),
Habitat Management Plan Permit Amendment HMP 05-08(A), Precise Development Plan
PDP 00-02(B), Mitigation Monitoring and Reporting Program for EIR 03-05(A),
Development Agreement DA 05-01(A), Standard Urban Storm Water Mitigation Program
(September 2009), and Coastal Development Permit 04-41; the State of California State
Lands Commission issuing an Amendment of Lease PRC 8727.1 (August 2008).
The environmental documents and permits are found at the following link:
http://www.sdcwa.org/carlsbad-desalination-project-approved-permits-and-plans
State Lands Commission Lease Application (Amendment of Lease PRC 8727.1 August
2008). Amends lease of land by Cabrillo Power I LLC (Cabrillo) from the State Lands
Commission for the lands where the project will be constructed. Cabrillo and Poseidon
entered into agreement on July 1, 2003, authorizing Poseidon to use those lands to construct
the project.
6.2.2 Water Authority Capital Improvement Program and Financial
Information
The Water Authority’s Capital Improvement Program (CIP) can trace its beginnings to a
report approved by the Board in 1989 entitled, The Water Distribution Plan, and a Capital
Improvement Program through the Year 2010. The Water Distribution Plan included ten
projects designed to increase the capacity of the aqueduct system, increase the yield from
existing water treatment plants, obtain additional supplies from MWD, and increase the
reliability and flexibility of the aqueduct system. Since that time the Water Authority has
made numerous additions to the list of projects included in its CIP as the region’s
infrastructure needs and water supply outlook have changed.
The current list of projects included in the CIP is based on the results of planning studies,
including the 2005 UWMP and the 2002 Regional Water Facilities Master Plan. These CIP
projects, which are most recently described in the Water Authority’s Adopted Multi-Year
Budget, include projects valued at $3.50 billion. These CIP projects are designed to meet
projected water supply and delivery needs of the member agencies through 2035. The
projects include a mix of new facilities that will add capacity to existing conveyance, storage,
and treatment facilities, as well as repair and replace aging infrastructure:
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• Asset Management – The primary components of the asset management projects
include relining and replacing existing pipelines and updating and replacing metering
facilities.
• New Facilities – These projects will expand the capacity of the aqueduct system,
complete the projects required under the Quantification Settlement Agreement (QSA),
and evaluate new supply opportunities.
• Emergency Storage Project – Projects remaining to be completed under the ongoing
ESP include the San Vicente Dam Raise, the Lake Hodges projects, and a new pump
station to extend ESP supplies to the northern reaches of the Water Authority service
area.
• Other Projects – This category includes out-of-region groundwater storage, increased
local water treatment plant capacity, and projects that mitigate environmental impacts
of the CIP.
The Water Authority Board of Directors is provided a semi-annual and annual report on the
status of development of the CIP projects. As described in the Water Authority’s biennial
budget, a combination of long and short term debt and cash (pay-as-you-go) will provide
funding for capital improvements. Additional information is included in the Water
Authority’s biennial budget, which also contains selected financial information and
summarizes the Water Authority’s investment policy.
6.3 Otay Water District
The Otay WD 2010 Water Resources Master Plan Update and the 2010 Urban Water
Management Plan contain comparisons of projected supply and demands through the year
2035. Projected potable water resources to meet planned demands as documented were
planned to be supplied entirely with imported water received from the Water Authority.
Recycled water resources to meet projected demands are planned to be supplied from local
wastewater treatment plants. The Otay WD currently has no local supply of raw water,
potable water, or groundwater resources.
The development and/or acquisition of potential groundwater, recycled water market
expansion, and seawater desalination supplies by the Otay WD have evolved and are planned
to occur in response to the regional water supply issues. These water supply projects are in
addition to those identified as sustainable supplies in the current Water Authority and MWD
UWMP, IRP, Master Plans, and other planning documents. These new additional water
supply projects are not currently developed and are in various stages of the planning process.
These local and regional water supply projects will allow for less reliance upon imported
water and are considered a new water supply resource for the Otay WD.
The Otay WD expansion of the market areas for the use of recycled water within the
watersheds upstream of the Sweetwater Reservoir, Otay Mesa, and the Lower Otay Reservoir
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will increase recycled water use and thus require less dependence on imported water for
irrigation purposes.
The supply forecasts contained within this WSA&V Report do consider development and/or
acquisition of potential groundwater, recycled water market expansion, and seawater
desalination supplies by the Otay WD.
6.3.1 Availability of Sufficient Supplies and Plans for Acquiring
Additional Supplies
The availability of sufficient potable water supplies and plans for acquiring additional potable
water supplies to serve existing and future demands of the Otay WD is founded upon the
preceding discussions regarding MWD’s and the Water Authority’s water supply resources
and water supplies to be acquired by the Otay WD. Historic imported water deliveries from
the Water Authority to Otay WD and recycled water deliveries from the Otay WD Ralph W.
Chapman Water Reclamation Facility (RWCWRF) are shown in Table 7. Since the year 2000
through mid May 2007, recycled water demand has exceeded the recycled water supply
capability typically in the summer months. The RWCWRF is limited to a maximum
production of about 1,300 ac-ft/yr. The recycled water supply shortfall had been met by
supplementing with potable water into the recycled water storage system as needed by adding
potable water supplied by the Water Authority. On May 18, 2007 an additional source of
recycled water supply from the City of San Diego’s South Bay Water Reclamation Plant
(SBWRP) became available. The supply of recycled water from the SBWRP is a result of
essentially completing construction and commencement of operations of the transmission,
storage, and pump station systems necessary to link the SBWRP recycled water supply source
to the existing Otay WD recycled water system.
Table 7
Historic Imported and Local Water Supplies
Otay Water District
Calendar
Year
Imported Water
(AF)
Recycled Water
(AF)
Total
(AF)
1980 12,558 0 12,558
1985 14,529 0 14,529
1990 23,200 0 23,200
1995 20,922 614 21,536
2000 29,901 948 30,849
2005 37,678 1,227 38,905
2010 29,270 4,090 33,270
2011 30,158 3,880 34,038
2012 31,268 4,155 35,423
Source: Otay Water District operational records.
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6.3.1.1 Imported and Regional Supplies
The availability of sufficient imported and regional potable water supplies to serve existing
and planned uses within Otay WD is demonstrated in the above discussion on MWD and the
Water Authority’s water supply reliability. The County Water Authority Act, Section 5
subdivision 11, states that the Water Authority “as far as practicable, shall provide each of its
member agencies with adequate supplies of water to meet their expanding and increasing
needs.” The Water Authority provides between 75 to 95 percent of the total supplies used by
its 24 member agencies, depending on local weather and supply conditions. In calendar year
2010 the supply to Otay WD was 29,270 AF of supply from the Water Authority. An
additional 4,090 AF of recycled water was supplied from the City of San Diego and from the
District’s Ralph W. Chapman Water Reclamation Facility. The demand for potable water
within the Otay WD is expected to increase to about 77,177 AF by 2035 as per the Otay WD
2010 UWMP.
Potable Water System Facilities
The Otay WD continues to pursue diversification of its water supply resources to increase
reliability and flexibility. The Otay WD also continues to plan, design, and construct potable
water system facilities to obtain these supplies and to distribute potable water to meet
customer demands. The Otay WD has successfully negotiated two water supply
diversification agreements that enhance reliability and flexibility, which are briefly described
as follows.
• The Otay WD entered into an agreement with the City of San Diego, known as the Otay
Water Treatment Plant (WTP) Agreement. The Otay WTP Agreement provides for raw
water purchase from the Water Authority and treatment by the City of San Diego at their
Otay WTP for delivery to Otay WD. The supply system link to implement the Otay
WTP Agreement to access the regions raw water supply system and the local water
treatment plant became fully operational in August 2005. This supply link consists of the
typical storage, transmission, pumping, flow measurement, and appurtenances to receive
and transport the treated water to the Otay WD system. The City of San Diego
obligation to supply 10 mgd of treated water under the Otay WTP Agreement is
contingent upon there being available 10 mgd of surplus treatment capacity in the Otay
WTP until such time as Otay WD pays the City of San Diego to expand the Otay WTP to
meet the Otay WD future needs. In the event that the City of San Diego’s surplus is
projected to be less than 10 mgd the City of San Diego will consider and not
unreasonably refuse the expansion of the Otay WTP to meet the Otay WD future needs.
The Otay WTP existing rated capacity is 40 mgd with an actual effective capacity of
approximately 34 mgd. The City of San Diego’s typical demand for treated water from
the Otay WTP is approximately 20 mgd. It is at the City of San Diego’s discretion to
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utilize either imported raw water delivered by the Water Authority Pipeline No. 3 or local
water stored in Lower Otay Reservoir for treatment to supply the Otay WD demand.
• The Otay WD entered into an agreement with the Water Authority, known as the East
County Regional Treated Water Improvement Program (ECRTWIP Agreement). The
ECRTWIP Agreement provides for transmission of raw water to the Helix WD R. M.
Levy WTP for treatment and delivery to Otay WD. The supply system link to implement
the ECRTWIP Agreement is complete allowing access to the regions raw water supply
system and the local water treatment plant. This supply link consists of the typical
transmission, pumping, storage, flow control, and appurtenances to receive and transport
the potable water from the R. M. Levy WTP to Otay WD. The Otay WD is required to
take a minimum of 10,000 AFY of treated water from the R.M. Levy WTP supplied
from the regions raw water system.
Cost and Financing
The capital improvement costs associated with water supply and delivery are financed
through the Otay WD water meter capacity fee, New Water Supply Fee, and user rate
structures. The Otay WD potable water sales revenue are used to pay for the wholesale cost
of the treated water supply and the operating and maintenance expenses of the potable water
system facilities.
Written Agreements, Contracts, or Other Proof
The supply and cost associated with deliveries of treated water from the Otay WTP and the R.M.
Levy WTP is based on the following documents.
Agreement for the Purchase of Treated Water from the Otay Water Treatment Plant between the
City of San Diego and the Otay Water District. The Otay WD entered into an agreement dated
January 11, 1999 with the City of San Diego that provides for 10 mgd of surplus treated water to
the Otay WD from the existing Otay WTP capacity. The agreement allows for the purchase of
treated water on an as available basis from the Otay WTP. The Otay WD pays the Water
Authority at the prevailing raw water rate for raw water and pays the City of San Diego at a rate
equal to the actual cost of treatment to potable water standards.
Agreement between the San Diego County Water Authority and Otay Water District Regarding
Implementation of the East County Regional Treated Water Improvement Program. The
ECRTWIP Agreement requires the purchase of at least 10,000 AFY of potable water from the
Helix WD R.M. Levy WTP at the prevailing Water Authority treated water rate. The ECRTWIP
Agreement is dated April 27, 2006.
Agreement between the San Diego County Water Authority and Otay Water District for Design,
Construction, Operation, and Maintenance of the Otay 14 Flow Control Facility Modification.
The Otay WD entered into the Otay 14 Flow Control Facility Modification Agreement dated
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January 24, 2007 with the Water Authority to increase the physical capacity of the Otay 14 Flow
Control Facility. The Water Authority and Otay WD to 50% share the capital cost to expand its
capacity from 8 mgd to 16 mgd.
Federal, State, and Local Permits/Approvals
The Otay WD acquired all the permits for the construction of the pipeline and pump station
associated with the Otay WTP supply source and for the 640-1 and 640-2 water storage
reservoirs project associated with the ECRTWIP Agreement through the typical planning,
environmental approval, design, and construction processes.
The transmission main project constructed about 26,000 feet of a 36-inch diameter steel
pipeline from the Otay 14 Flow Control Facility to the 640-1 and 640-2 Reservoirs project.
The Otay 14 Flow Control Facility modification increased the capacity of the existing systems
from 8 mgd to 16 mgd. CEQA documentation is complete for both projects. Construction of
both of these projects was completed October 2010.
The City of San Diego and the Helix Water District are required to meet all applicable federal,
state, and local health and water quality requirements for the potable water produced at the
Otay WTP and the R.M. Levy WTP respectively.
6.3.1.2 Recycled Water Supplies
Wastewater collection, treatment, and disposal services provided by the Otay WD is limited to
a relatively small area within what is known as the Jamacha Basin, located within the Middle
Sweetwater River Basin watershed upstream of the Sweetwater Reservoir and downstream of
Loveland Reservoir. Water recycling is defined as the treatment and disinfection of
municipal wastewater to provide a water supply suitable for non-potable reuse. The Otay WD
owns and operates the Ralph W. Chapman Water Reclamation Facility, which produces
recycled water treated to a tertiary level for landscape irrigation purposes. The recycled water
market area of the Otay WD is located primarily within the eastern area of the City of Chula
Vista and on the Otay Mesa. The Otay WD distributes recycled water to a substantial market
area that includes but is not limited to the U.S. Olympic Training Center, the EastLake Golf
Course, and other development projects.
The Otay WD projects that annual average demands for recycled water will increase to 8,000
AFY by 2035. About 1,300 AFY of supply is generated by the RWCWRF, with the
remainder planned to be supplied to Otay WD by the City of San Diego’s SBWRP.
North District Recycled Water Concept
The Otay WD is a recognized leader in the use of recycled water for irrigation and other
commercial uses. The Otay WD continues the quest to investigate all viable opportunities to
expand the successful recycled water program into areas that are not currently served. One of
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these areas is in the portion of the service area designated as the North District, located within
the Middle Sweetwater River Basin watershed upstream of the Sweetwater River. The close
proximity of the recycled water markets in the North District to the Otay WD’s source of
recycled water, the RWCWRF, means that the distribution system to serve this area could be
constructed relatively cost effectively. This makes the North District a logical location for the
expansion of the Otay WD’s recycled water system and market area.
The purpose of the North District Recycled Water System Development Project, Phase I
Concept Study, is to identify the feasibility of using recycled water in the North District and
to investigate and assess any limitations or constraints to its use. The Phase I study
components of the North District Recycled Water Concept encompassed the preparation of
six technical memorandums including the project definition, a discussion of the regulatory
process, a discussion of the protection of the watershed that would be affected by recycled
water use in the North District, identification of stakeholders, public outreach, and an
implementation plan.
Several opportunities that could be realized with the implementation of the use of recycled
water in the North District were identified. These include a reduction of demand on the
potable water system and maximizing recycled water resources which in turn minimizes
treated wastewater discharges to the local ocean outfall. Other opportunities are a possible
partnership with Sweetwater Authority to monitor any benefits and impacts of increased
recycled water use in the watershed and stakeholder outreach to resolve any water quality
concerns and to retain consumer confidence. Also identified were two major constraints
associated with the North District Recycled Water System Development Project. One
constraint is the water quality objectives for the Middle Sweetwater Basin that will affect the
effluent limitations for the recycled water produced at the RWCWRF. At this time, the
effluent limit that is of concern is total nitrogen. An examination as to how the treatment
process might be modified to enhance nitrogen removal and an action plan is being
developed. The other major constraint is the cost of the infrastructure needed to convey and
store recycled water in the North District. These costs are estimated to be in the range of $14
to $15 million dollars.
There are two additional phases proposed for the North District Recycled Water System
Development Project. Phase II would include further investigation of the issues identified in
Phase I as requiring further study. These include stakeholder outreach, regulatory issues, and
facility planning. The third phase of the effort would include the facility planning, permitting,
environmental compliance, design, and construction of the improvements necessary for
delivery of recycled water to the North District markets.
The estimated amount of imported water saved at full implementation of the North District
Recycled Water System Development Project is 1,200 ac-ft/yr. This saved imported water
could then be used to offset new potable water demands.
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Recycled Water System Facilities
The Otay WD has and continues to construct recycled water storage, pumping, transmission,
and distribution facilities to meet projected recycled water market demands. For nearly 20
years, millions of dollars of capital improvements have been constructed. The supply link
consisting of a transmission main, storage reservoir, and a pump station to receive and
transport the recycled water from the City of San Diego’s SBWRP are complete and recycled
water deliveries began on May 18, 2007.
Cost and Financing
The capital improvement costs associated with the recycled water supply and distribution
systems are financed through the Otay WD water meter capacity fee and user rate structures.
The Otay WD recycled water sales revenue, along with MWD and the Water Authority’s
recycled water sales incentive programs are used to help offset the costs for the wholesale
purchase and production of the recycled water supply, the operating and maintenance
expenses, and the capital costs of the recycled water system facilities.
Written Agreements, Contracts, or Other Proof
The supply and cost associated with deliveries of recycled water from the SBWRP is based on
the following document.
Agreement between the Otay Water District and the City of San Diego for Purchase of
Reclaimed Water from the South Bay Water Reclamation Plant. The agreement provides for the
purchase of at least 6,721 ac-ft per year of recycled water from the SBWRP at an initial price of
$350 per acre-foot. The Otay WD Board of Directors approved the final agreement on June 4,
2003 and the San Diego City Council approved the final agreement on October 20, 2003.
Federal, State, and Local Permits/Approvals
The Otay WD has in place an agreement with MWD for their recycled water sales incentive
program for supplies from the RWCWRF and the SBWRP. Also, the Otay WD has in place
an agreement with the Water Authority for their recycled water sales incentive program for
supplies from the RWCWRF and the SBWRP. The Water Authority sales incentive
agreement was approved by Water Authority on July 26, 2007 and by Otay WD on August 1,
2007. All permits for the construction of the recycled water facilities to receive, store, and
pump the SBWRP supply have been acquired through the typical planning, environmental
approval, design, and construction processes.
The California Regional Water Quality Control Board San Diego Region (RWQCB) “Master
Reclamation Permit for Otay Water District Ralph W. Chapman Reclamation Facility” was
adopted on May 9, 2007 (Order No. R9-2007-0038). This order establishes master
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reclamation requirements for the production, distribution, and use of recycled water in the
Otay WD service area. The order includes the use of tertiary treated water produced and
received from the City of San Diego‘s SBWRP. Recycled water received from and produced
by the SBWRP is regulated by Regional Board Order No. 2000-203 and addenda. The City
of San Diego is required to meet all applicable federal, state, and local health and water
quality requirements for the recycled water produced at the SBWRP and delivered to Otay
WD in conformance with Order No. 2000-203.
6.3.1.3 Potential Groundwater Supplies
The Otay WD 2010 UWMP, the WRMP Update, and the Otay WD March 2007 Integrated
Water Resources Plan (2007 IRP) both contain a description of the development of potential
groundwater supplies. Over the past several years, Otay WD has studied numerous potential
groundwater supply options that have shown, through groundwater monitoring well activities,
poor quality water and/or insufficient yield from the basins at a cost effective level. The Otay
WD has a few capital improvement program projects to continue the quest to develop
potential groundwater resources. Local Otay WD groundwater supply development is
currently considered as a viable water supply resource to meet projected demands.
The development and/or acquisition of potential groundwater supply projects by the Otay WD
has been resurrected and evolved in response to the regional water supply issues related to
water source supply conditions. Local ground water supply projects will allow for less
reliance upon imported water, achieve a level of independence of the regional wholesale
water agencies, and diversify the Otay WD’s water supply portfolio consistent the Otay WD
2007 IRP.
In recognition of the need to develop sufficient alternative water supplies, the Otay WD has
taken the appropriate next steps towards development of production groundwater well
projects.
There are three groundwater well projects that the Otay WD is actively pursuing to develop as
new local water supplies. They are known as the Middle Sweetwater River Basin
Groundwater Well, the Otay Mesa Lot 7 Groundwater Well, and the Rancho del Rey
Groundwater Well.
Middle Sweetwater River Basin Groundwater Well
The Middle Sweetwater River Basin Groundwater Well is an additional water supply project
that was thoroughly studied and documented in the 1990s. The Middle Sweetwater River
Basin is located within the Sweetwater River watershed and that reach of the river extends
from Sweetwater Reservoir to the upstream Loveland Reservoir. The next step in
development of the Middle Sweetwater River Basin Groundwater Well is the implementation
of a pilot well project. The ultimate objective of the Otay WD is to develop a groundwater
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well production system within the Middle Sweetwater River Basin capable of producing a
sustainable yield of potable water as a local supply.
The purpose of the Middle Sweetwater River Basin Groundwater Well Pilot project is to
identify the feasibility of developing a groundwater resource production system and then
determine and assess any limitations or constraints that may arise. The Middle Sweetwater
River Basin Groundwater Well Pilot Project will accomplish six primary goals:
• Update project setting
• Update applicable project alternatives analysis
• Prepare groundwater well pilot project implementation plan
• Construct and test pilot monitoring and extraction wells
• Provide recommendations regarding costs and feasibility to develop a groundwater
well production system within the Middle Sweetwater River Basin capable of
producing a sustainable yield of potable water
• Prepare groundwater well production project implementation plan and scope of work
The groundwater conjunctive use concept is described as the extraction of the quantity of
water from the groundwater basin that was placed there by customers of the Otay Water
District, Helix Water District, and Padre Dam Municipal Water District by means of their use
of imported treated water that contributed to the overall volume of groundwater within the
basin. An estimated quantity was developed to be approximately 12.5 percent of the total
consumption of the Otay WD customers within that basin, as measured by water meters. In
the 1994-1995 period, the quantity of water that was returned to the groundwater basin by
Otay WD customers was estimated to be 810 AFY. Currently, that 12.5 percent quantity
could be on the order of 1,000 AFY. A future scope of work will need to addresses this
concept while considering further development of the groundwater basin as an additional
supply resource. If it is deemed that a Middle Sweetwater River Basin Groundwater Well
Production Project is viable then the consultant will develop and provide a groundwater well
production project implementation plan, cost estimate, and related scope of work.
Further development of the groundwater basin to enhance the total groundwater production
could be accomplished by the Otay WD by means of additional extraction of water from the
basin that is placed there by means of either injection and/or spreading basins using imported
untreated water as the resource supply. The existing La Mesa Sweetwater Extension Pipeline,
owned by the Water Authority, once converted to an untreated water delivery system, could
be the conveyance system to transport untreated water for groundwater recharge in support of
this conjunctive use concept. These two distinct water resource supply conjunctive use
concepts will be addressed so they may coexist and to allow for their development as separate
phases.
The scope of work to complete Middle Sweetwater River Basin Groundwater Well Pilot
Project consists of many major tasks and is to address the groundwater supply concepts
outlined above. It is anticipated that the cost for the entire scope of work, will be on the order
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of $2,000,000, which includes a contingency and may take up to one and a half years to
complete.
The primary desired outcome of the Middle Sweetwater River Basin Groundwater Well Pilot
Project is for the engineering consultant to determine and make recommendations if it is
financially prudent and physically feasible to develop a Phase I groundwater well production
system within the Middle Sweetwater River Basin capable of producing a sustainable yield of
up to 1,500 ac-ft/yr of potable water for the Otay WD. If it is deemed that a Middle
Sweetwater River Basin Groundwater Well Production Project is viable then the consultant
will develop and provide a groundwater well production project implementation plan and
related scope of work.
Otay Mesa Lot 7 Groundwater Well
In early 2001 the Otay WD was approached by a landowner representative about possible
interest in purchasing an existing well or alternatively, acquiring groundwater supplied from
the well located on Otay Mesa. The landowner, National Enterprises, Inc., reportedly stated
that the well could produce 3,200 AFY with little or no treatment required prior to introducing
the water into the Otay WD potable water system or alternatively, the recycled water system.
In March 2001 authorization to proceed with testing of the Otay Mesa Lot 7 Groundwater
Well was obtained and the Otay WD proceeded with the investigation of this potential
groundwater supply opportunity.
The May 2001 Geoscience Support Services, Inc. completed for the Otay WD the preparation
of a report entitled, “Otay Mesa Lot 7 Well Investigation,” to assess the Otay Mesa Lot 7
Well. The scope of work included a geohydrologic evaluation of the well, analyses of the
water quality samples, management and review of the well video log, and documentation of
well pump testing. The primary findings, as documented in the report, formed the basis of the
following recommendations:
• For the existing well to be use as a potable water supply resource, a sanitary seal must
be installed in accordance with the CDPH guidelines.
• Drawdown in the well must be limited to avoid the possibility of collapsing the casing.
• Recover from drawdown from pumping is slow and extraction would need to be
terminated for up to 2 days to allow for groundwater level recovery.
• The well water would need to be treated and/or blended with potable water prior to
introduction into the potable water distribution system.
The existing Otay Mesa Lot 7 Well, based upon the above findings, was determined not to be
a reliable municipal supply of potable water and that better water quality and quantity perhaps
could be discovered deeper or at an alternative location within the San Diego Formation.
The Otay WD may still continue to pursue the Otay Mesa groundwater well opportunity with
due consideration of the recommendations of the existing report. Based on the
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recommendations of the investigation report, a groundwater well production facility at Otay
Mesa Lot 7 could realistically extract approximately 300 AFY.
Rancho del Rey Groundwater Well
In 1991, the McMillin Development Company drilled the Rancho del Rey Groundwater Well
to augment grading water supplies for their Rancho del Rey development projects. Although
the well was considered a “good producer,” little was known regarding its water quality and
sustainable yield because the water was used solely for earthwork (i.e. dust control and soil
compaction). The well was drilled to 865 feet, with a finished depth of 830 feet and produced
approximately 400 AFY of low quality water for four years until its use was discontinued in
April 1995 when the well was no longer needed. McMillin notified the Otay WD of its intent
to sell off the groundwater well asset.
In 1997, the Otay WD purchased an existing 7-inch well and the surrounding property on
Rancho del Rey Parkway from the McMillin Company with the intent to develop it as a
source of potable water. Treatment was required to remove salts and boron, among other
constituents, using reverse osmosis membranes and ion exchange.
In 2000, having received proposals for the design and construction of a reverse osmosis
treatment facility that far exceeded the allocated budget, the Board of Directors instructed
staff to suspend the project until such time as it became economically viable.
In January 2010, citing the rising cost of imported water and the Otay WD's interest in
securing its own water source for long-term supply reliability, the Board authorized Phase 1
for drilling and development of the Rancho del Rey Well.
On March 3, 2010, the Board adopted the Mitigated Negative Declaration for this project and
a Notice of Determination was filed with the County of San Diego on March 5, 2010. In
September 2010, a new 12-inch production well was drilled to a depth of 900 feet through the
groundwater formation and into fractured bedrock. Testing showed the long-term yield of the
new well to be 450 gpm, higher than previous studies had estimated. Separation Processes,
Inc. (SPI), a highly qualified membrane treatment firm, was hired to conduct a detailed
economic feasibility study to confirm that the annualized unit cost of the new water source
was economically competitive with other sources. The economic study estimated the unit
cost of water to be $1, 500 to $2,000 per AF for an alternative that utilizes a seawater
membrane for treating both salts and boron. When compared with the current imported
treated water rate from the Water Authority, and with the knowledge that this rate will
continually increase as MWD and the Water Authority raise their rates, the Rancho del Rey
Well project appears to be economically viable.
The Otay WD is continuing to pursue the Rancho del Rey groundwater well opportunity with
due consideration of the recommendations of the existing reports and plans to develop a
groundwater well production facility to extract approximately 500 AFY. For water planning
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purposes, production of groundwater from the Rancho del Rey well is considered “additional
planned” for local supplies. During preparation of this 2010 UWMP, the Otay WD has
contracted for design services for the wellhead treatment facilities.
6.3.1.4 Otay Water District Desalination Project
The Otay WD is currently investigating the feasibility of purchasing desalinated water from a
seawater reverse osmosis plant that is planned to be located in Rosarito, Mexico, known as the
Otay Mesa Desalinated Water Conveyance System (Desalination) project. The treatment
facility is intended to be designed, constructed, and operated in Mexico by a third party. The
Otay WD’s draft Desalination Feasibility Study, prepared in 2008, discusses the likely issues
to be considered in terms of water treatment and monitoring, potential conveyance options
within the United States from the international border to potential delivery points, and
environmental, institutional, and permitting considerations for the Otay WD to import the
Desalination project product water as a new local water supply resource.
While the treatment facility for the Desalination project will likely not be designed or
operated by the Otay WD as the lead agency, it is important that the Otay WD maintain
involvement with the planning, design, and construction of the facility to ensure that the
implemented processes provide a product water of acceptable quality for distribution and use
within the Otay WD’s system as well as in other regional agencies’ systems that may use the
product water, i.e. City of San Diego, the Water Authority, etc. A seawater reverse osmosis
treatment plant removes constituents of concern from the seawater, producing a water quality
that far exceeds established United States and California drinking water regulations for most
parameters, however, a two-pass treatment system may be required to meet acceptable
concentrations of boron and chlorides, similar to the levels seen within the existing Otay WD
supply sources. The Desalination Feasibility Study addresses product water quality that is
considered acceptable for public health and distribution.
The Otay WD, or any other potential participating agencies, will be required to get approval
from the CDPH in order to use the desalinated seawater as a water source. Several alternative
approaches are identified for getting this approval. These alternatives vary in their cost and
their likelihood of meeting CDPH approval.
The Rosarito Desalination Facility Conveyance and Disinfection System Project report
addresses two supply targets for the desalinated water (i.e. local and regional). The local
alternative assumes that only Otay WD would participate and receive desalinated water, while
the regional alternative assumes that other regional and/or local agencies would also
participated in the Rosarito project.
On November 3, 2010, the Otay WD authorized the General Manager to enter into an
agreement with AECOM for the engineering design, environmental documentation, and the
permitting for the construction of the conveyance pipeline, pump station, and disinfection
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facility to be constructed within the Otay WD. The supply target is assumed to be 50 mgd
while the ultimate capacity of the plant will be 100 mgd.
The Otay WD is proceeding with negotiations among the parties to establish water supply
resource acquisition terms through development of a Principles of Understanding document.
6.3.2 Otay WD Capital Improvement Program
The Otay WD plans, designs, constructs, and operates water system facilities to acquire
sufficient supplies and to meet projected ultimate demands placed upon the potable and recycled
water systems. In addition, the Otay WD forecasts needs and plans for water supply
requirements to meet projected demands at ultimate build out. The necessary water facilities and
water supply projects are implemented and constructed when development activities proceed and
require service to achieve timely and adequate cost effective water service.
New water facilities that are required to accommodate the forecasted growth within the entire
Otay WD service area are defined and described within the Otay WD WRMP Update . These
facilities are incorporated into the annual Otay WD Six Year Capital Improvement Program
(CIP) for implementation when required to support development activities. As major
development plans are formulated and precede through the land use jurisdictional agency
approval processes, Otay WD prepares water system requirements specifically for the proposed
development project consistent with the Otay WD WRMP Update . These requirements
document, define, and describe all the potable water and recycled water system facilities to be
constructed to provide an acceptable and adequate level of service to the proposed land uses, as
well as the financial responsibility of the facilities required for service. The Otay WD funds the
facilities identified as CIP projects. Established water meter capacity fees and user rates are
collected to fund the CIP project facilities. The developer funds all other required water system
facilities to provide water service to their project.
Section 7 – Conclusion: Availability of Sufficient Supplies
The Planning Area 12 Freeway Commercial Project is currently located within the
jurisdictions of the Otay WD, Water Authority, and MWD. To obtain permanent imported
water supply service, land areas are required to be within the jurisdictions of the Otay WD,
Water Authority, and MWD to utilize imported water supply.
The Water Authority and MWD have an established process that ensures supplies are being
planned to meet future growth. Any annexations and revisions to established land use plans
are captured in the San Diego Association of Governments (SANDAG) updated forecasts for
land use planning, demographics, and economic projections. SANDAG serves as the
regional, intergovernmental planning agency that develops and provides forecast information.
The Water Authority and MWD update their demand forecasts and supply needs based on the
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most recent SANDAG forecast approximately every five years to coincide with preparation of
their urban water management plans. Prior to the next forecast update, local jurisdictions with
land use authority may require water supply assessment and/or verification reports for
proposed land developments that are not within the Otay WD, Water Authority, or MWD
jurisdictions (i.e. pending or proposed annexations) or that have revised land use plans with
either lower or higher development intensities than reflected in the existing growth forecasts.
Proposed land areas with pending or proposed annexations, or revised land use plans,
typically result in creating higher demand and supply requirements than previously
anticipated. The Otay WD, Water Authority, and MWD next demand forecast and supply
requirements and associated planning documents would then capture any increase or decrease
in demands and required supplies as a result of annexations or revised land use planning
decisions.
MWD’s Integrated Resources Plan (IRP) identifies a mix of resources (imported and local)
that, when implemented, will provide 100 percent reliability for full-service demands through
the attainment of regional targets set for conservation, local supplies, State Water Project
supplies, Colorado River supplies, groundwater banking, and water transfers. The 2010
update to the IRP includes a planning buffer supply intended to mitigate against the risks
associated with implementation of local and imported supply programs and for the risk that
future demands could be higher than projected. The planning buffer identifies an additional
increment of water that could potentially be developed when needed and if other supplies are
not fully implemented as planned. As part of implementation of the planning buffer, MWD
periodically evaluates supply development, supply conditions, and projected demands to
ensure that the region is not under or over developing supplies. Managed properly, the
planning buffer will help ensure that the southern California region, including San Diego
County, will have adequate water supplies to meet long-term future demands.
In Section ES-5 of their 2010 RUWMP, MWD states that MWD has supply capacities that
would be sufficient to meet expected demands from 2015 through 2035. MWD has plans for
supply implementation and continued development of a diversified resource mix including
programs in the Colorado River Aqueduct, State Water Project, Central Valley Transfers,
local resource projects, and in-region storage that enables the region to meet its water supply
needs. MWD’s 2010 RUWMP identifies potential reserve supplies in the supply capability
analysis (Tables 2-9, 2-10, and 2-11), which could be available to meet the unanticipated
demands.
The County Water Authority Act, Section 5 subdivision 11, states that the Water Authority
“as far as practicable, shall provide each of its member agencies with adequate supplies of
water to meet their expanding and increasing needs.”
As part of preparation of a written water supply assessment report, an agency’s shortage
contingency analysis should be considered in determining sufficiency of supply. Section 11
of the Water Authority’s 2010 Updated UWMP contains a detailed shortage contingency
analysis that addresses a regional catastrophic shortage situation and drought management.
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The analysis demonstrates that the Water Authority and its member agencies, through the
Emergency Response Plan, Emergency Storage Project, Carlsbad Desalination Project, and
Drought Management Plan (DMP) are taking actions to prepare for and appropriately handle
an interruption of water supplies. The DMP, adopted in May 2006, provides the Water
Authority and its member agencies with a series of potential actions to take when faced with a
shortage of imported water supplies from MWD due to prolonged drought or other supply
shortfall conditions. The actions will help the region avoid or minimize the impacts of
shortages and ensure an equitable allocation of supplies.
The WSA&V Report identifies and describes the processes by which water demand
projections for the proposed Planning Area 12 Freeway Commercial Project will be fully
included in the water demand and supply forecasts of the Urban Water Management Plans
and other water resources planning documents of the Water Authority and MWD. Water
supplies necessary to serve the demands of the proposed Planning Area 12 Freeway
Commercial Project, along with existing and other projected future users, as well as the
actions necessary and status to develop these supplies, have been identified in the Planning
Area 12 Freeway Commercial WSA&V Report and will be included in the future water
supply planning documents of the Water Authority and MWD.
This WSA&V Report includes, among other information, an identification of existing water
supply entitlements, water rights, water service contracts, water supply projects, or
agreements relevant to the identified water supply needs for the proposed Planning Area 12
Freeway Commercial Project. This WSA&V Report assesses, demonstrates, and documents
that sufficient water supplies are planned for and are intended to be available over a 20-year
planning horizon, under normal conditions and in single and multiple dry years to meet the
projected demand of the proposed Planning Area 12 Freeway Commercial Project and the
existing and other planned development projects to be served by the Otay WD.
Table 8 presents the forecasted balance of water demands and required supplies for the Otay
WD service area under average or normal year conditions. The total actual demand for FY
2010 was 33,270 acre feet. The demand for FY 2010 is 5,635 acre feet lower than the
demand in FY 2005 of 38,905 acre feet. The drop in demand is a result of the unit price of
water, the conservation efforts of users as a result of the prolonged drought, and the economy.
Table 9 presents the forecasted balance of water demands and supplies for the Otay WD
service area under single dry year conditions. Table 9 presents the forecasted balance of
water demands and supplies for the Otay WD service area under multiple dry year conditions
for the three year period ending in 2018. The multiple dry year conditions for periods ending
in 2023, 2028, and 2033 are provided in the Otay Water District 2010 UWMP. The projected
potable demand and supply requirements shown the Tables 8 and 9 are from the Otay Water
District 2010 UWMP. Hot, dry weather may generate urban water demands that are about 6.4
percent greater than normal. This percentage was utilized to generate the dry year demands
shown in Table 9. The recycled water supplies are assumed to experience no reduction in a
dry year.
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Table 8
Projected Balance of Water Demands and Supplies Normal Year Conditions (AF)
Description FY 2015 FY 2020 FY 2025 FY 2030 FY 2035
Demands
Otay WD Demands 44,883 53,768 63,811 70,669 77,171
PA 12 Freeway Comm. Demands 127 127 127 127 127
Additional Conservation Target 0 (7,447) (13,996) (17,895) (20,557)
Total Demand 45,010 46,478 49,942 52,901 56,741
Supplies
Water Authority Supply 40,483 41,321 44,015 45,974 48,614
Water Authority Accelerated Forecast
Growth Increment 127 127 127 127 127
Recycled Water Supply 4,400 5,000 5,800 6,800 8,000
Total Supply 45,010 46,478 49,942 52,901 56,741
Supply Surplus/(Deficit) 0 0 0 0 0 The 127 AFY increase in demand is accounted for through the Accelerated Forecasted Growth demand increment of the Water Authority’s 2010 UWMP.
Table 9 presents the forecasted balance of water demands and supplies for the Otay WD
service area under single dry year and multiple dry year conditions as from the Otay WD
2010 UWMP.
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Table 9
Projected Balance of Water Demands and Supplies
Single Dry and Multiple Dry Year Conditions (acre feet)
Normal
Year
Single
Dry Year Multiple Dry Years
FY 2011 FY 2012 FY 2013 FY 2014 FY 2015
Demands
Otay WD Demands 37,176 41,566 43,614 46,385 50,291
Total Demand 37,176 41,566 43,614 46,385 50,291
Supplies
Water Authority Supply 33,268 37,535 39,460 42,108 45,891
Recycled Water Supply 3,908 4,031 4,154 4,277 4,400
Total Supply 37,176 41,566 43,614 46,385 50,291
Supply Surplus/(Deficit) 0 0 0 0 0
District Demand totals with SBX7-7 conservation target achievement plus single dry year increase as shown.
The Water Authority could implement its DMP. In this instances, the Water Authority may have to allocate supply
shortages based on it equitable allocation methodology in its DMP.
Dry year demands assumed to generate a 6.4% increase in demand over normal conditions for
each year in addition to new demand growth.
Table 9 also presents the forecasted balance of water demands and supplies for the Otay WD
service area under multiple dry year conditions for the three year period ending in 2015.
In evaluating the availability of sufficient water supply, the Planning Area 12 Freeway
Commercial Project development proponents will be required to participate in the
development of alternative water supply project(s). This can be achieved through payment of
the New Water Supply Fee adopted by the Otay WD Board in May 2010. These water supply
projects are in addition to those identified as sustainable supplies in the current Water
Authority and MWD UWMP, IRP, Master Plans, and other planning documents. These new
water supply projects are in response to the regional water supply issues related to
climatological, environmental, legal, and other challenges that impact water source supply
conditions, such as the court rulings regarding the Sacramento-San Joaquin Delta and the
current ongoing western states drought conditions. These new additional water supply
projects are not currently developed and are in various stages of the planning process. The
Otay WD water supply development program includes but is not limited to projects such as
the Middle Sweetwater River Basin Groundwater Well project, the North District Recycled
Water Supply Concept, the Otay WD Desalination project, and the Rancho del Rey
Groundwater Well project. The Water Authority and MWD’s next forecasts and supply
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planning documents would capture any increase in water supplies resulting from any new
water resources developed by the Otay WD.
The Otay WD acknowledges the ever-present challenge of balancing water supply with
demand and the inherent need to possess a flexible and adaptable water supply
implementation strategy that can be relied upon during normal and dry weather conditions.
The responsible regional water supply agencies have and will continue to adapt their resource
plans and strategies to meet climate, environmental, and legal challenges so that they may
continue to provide water supplies to their service areas. The regional water suppliers along
with Otay WD fully intend to maintain sufficient reliable supplies through the 20-year
planning horizon under normal, single, and multiple dry year conditions to meet projected
demand of the Planning Area 12 Freeway Commercial Project, along with existing and other
planned development projects within the Otay WD service area.
This WSA&V Report assesses, demonstrates, and documents that sufficient water supplies are
planned for and are intended to be acquired, as well as the actions necessary and status to
develop these supplies, to meet projected water demands of the Planning Area 12 Freeway
Commercial Project as well as existing and other reasonably foreseeable planned development
projects within the Otay WD for a 20-year planning horizon, in normal and in single and
multiple dry years.
Otay Water District
Water Supply Assessment and Verification Report
Otay Ranch Planning Area 12 Freeway Commercial
59
Source Documents
City of Chula Vista, Otay Ranch Planning Area 12 Freeway Commercial SB 610 and SB 221
Compliance request letter received May 31, 2013.
City of Chula Vista, “Otay Ranch General Development Plan/Sub-regional Plan, The Otay Ranch
Joint Planning Project,” October 1993 amended June 1996.
County of San Diego, “East Otay Mesa Specific Plan Area,” adopted July 27, 1994.
Otay Water District, “2010 Water Resources Master Plan Update,” Revised 2013.
Atkins and Otay Water District, “Otay Water District 2010 Urban Water Management Plan,”
June 2011.
Camp Dresser & McKee, Inc., “Otay Water District Integrated Water Resources Plan,” March
2007
San Diego County Water Authority, “Urban Water Management Plan 2005 Update,”
November 2005 amended May 2007.
MWD Water District of Southern California, “Regional Urban Water Management Plan,”
November 2005.
Dexter Wilson Engineering, Inc., “Otay Ranch Planning Area 12 Freeway Commercial SPA
Amendment Water System Evaluation” memorandum, May 21, 2013.
Camp Dresser & McKee, Inc., “Rosarito Desalination Facility Conveyance and Disinfection
System Project,” June 21, 2010.
PBS&J, “Draft Otay Water District North District Recycled Water System Development
Project, Phase I Concept Study,” December 2008.
NBS Lowry, “Middle Sweetwater River System Study Water Resources Audit,” June 1991.
Michael R. Welch, “Middle Sweetwater River System Study Alternatives Evaluation,” May
1993.
Michael R. Welch, “Middle Sweetwater River Basin Conjunctive Use Alternatives,”
September 1994.
Geoscience Support Services, Inc., “Otay Mesa Lot 7 Well Investigation,” May 2001.
Otay Water District
Water Supply Assessment and Verification Report
Otay Ranch Planning Area 12 Freeway Commercial
60
Boyle Engineering Corporation, “Groundwater Treatment Feasibility Study Ranch del Ray
Well Site,” September 1996.
Agreement for the Purchase of Treated Water from the Otay Water Treatment Plant between
the City of San Diego and the Otay Water District.
Agreement between the San Diego County Water Authority and Otay Water District regarding
Implementation of the East County Regional Treated Water Improvement Program.
Agreement between the San Diego County Water Authority and Otay Water District for
Design, Construction, Operation, and Maintenance of the Otay 14 Flow Control Facility
Modification.
Agreement between the Otay Water District and the City of San Diego for Purchase of
Reclaimed Water from the South Bay Water Reclamation Plant.
Otay Water District
Water Supply Assessment and Verification Report
Otay Ranch Planning Area 12 Freeway Commercial
1
Appendix A
Planning Area 12 Freeway Commercial Regional Location Map
Otay Water District
Water Supply Assessment and Verification Report
Otay Ranch Planning Area 12 Freeway Commercial
2
Appendix B
Otay Ranch Planning Area 12 Freeway Commercial Proposed Development Plan
Otay Water District Board of Directors Meeting
July 3, 2013
Water Supply Assessment & Verification Report for
Otay Ranch PA12 Freeway Commercial Project
SB 610 & SB 221 Compliance
EXHIBIT D
BACKGROUND
Senate Bills 610 and 221 became effective on
January 1, 2002, with the primary intent to improve
the link between water supply availability and land
use decisions.
SB 610 Water Supply Assessment (WSA): Requires water purveyor to prepare a Water
Supply Assessment report for inclusion in
agency CEQA documentation.
SB 221 Water Supply Verification (WSA&V): Requires water purveyor to prepare a Water
Supply Assessment & Verification report for
inclusion in agency CEQA documentation.
Board approval required for submittal of the
WSA&V report to City of Chula Vista.
2
Otay Ranch PA12 Freeway Commercial Project
•35.4 Acre Site
•448 Multi-
family Units
•257 Room Hotel
•115,000 Sq. Ft.
Commercial
Water Demand
187 AFY
Potable
28.5 AFY
Recycled
127 AFY Demand
Increase
3
Water Supply Assessment & Verification
Report
The regional and local water supply agencies
acknowledge the challenges and fully intend to
develop sufficient, reliable supplies to meet
demands.
Water suppliers recognize additional water supplies
are necessary and portfolios need to be reassessed
and redistributed with intent to serve existing and
future needs.
4
Water Supply Assessment & Verification
Report
The Report documents the planned water supply
projects and the actions necessary to develop the
supplies.
Water supply for the Projects and for existing and
future developments within the District for a 20-
year planning horizon, under normal and in single
and multiple dry years, are planned for and are
intended to be made available.
5
Otay Water District
6
Planned Local Water Supply Projects Supply (AF)
Rancho del Rey Groundwater Well 500
Rosarito Ocean Desalination Project 20,000-50,000
Otay Mesa Lot 7 Groundwater Well 300
Otay Mesa Recycled Water Supply Link
Project 800
Water Authority Supplies
WATER AUTHORITY
SUPPLIES (AFY) 2015 2020 2025 2030 /
2035
IID Water Transfer 100,000 190,000 200,000 200,000
ACC and CC Lining 80,200 80,200 80,200 80,200
Carlsbad Desalination 0 56,000 56,000 56,000
Sub-Total: 180,200 326,200 336,200 336,200
Source: Table 9-1 Water Authority 2010 UWMP
7
8
Otay Water District
Projected Balance of Supply and Demand
Description FY 2015 FY 2020 FY 2025 FY 2030 FY 2035
Demands
Otay WD Demands 44,883 53,768 63,811 70,669 77,171
Otay Ranch PA 12 Freeway
Commercial Increase in Demands 127 127 127 127 127
Additional Conservation Target 0 (7,447) (13,996) (17,895) (20,557)
Total Demand 45,010 46,478 49,942 52,901 56,741
Supplies
Water Authority Supply 40,483 41,321 44,015 45,974 48,614
Water Authority Accelerated
Forecast Growth Increment 127 127 127 127 127
Recycled Water Supply 4,400 5,000 5,800 6,800 8,000
Total Supply 45,010 46,478 49,942 52,901 56,741
Supply Surplus/(Deficit) 0 0 0 0 0
The 127 AFY increase in demand is accounted for through the Accelerated Forecasted Growth
demand increment of the Water Authority’s 2010 UWMP.
Source: Table 8 of the Otay Ranch PA12 Freeway Commercial WSA&V report.
CONCLUSION
Water demand and supply forecasts are
included in the planning documents of MWD,
Water Authority, and the Otay Water District.
Actions necessary to develop the identified
water supplies are documented.
The Otay Ranch PA12 Freeway Commercial
Project SB 610 & SB 221 WSA&V Report
demonstrates and documents that sufficient
water supplies are planned for and are intended
to be available over the next 20 years.
9
It is believed that the Board has met the intent
of SB 610 & SB 221 statute in that:
1)Land use agencies and water suppliers
have demonstrated strong linkage.
2)The Otay Ranch PA12 Freeway
Commercial Project Water Supply
Assessment & Verification Report
clearly documents the current water
supply situation.
CONCLUSION
(continued)
10
STAFF RECOMMENDATION
That the Board of Directors approve Senate Bills 610
& 221 Water Supply Assessment & Verification Report
dated May 2013 for the Otay Ranch PA12 Freeway
Commercial Project.
11
QUESTIONS?
12
STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: July 3, 2013
SUBMITTED BY: Dan Martin
Engineering Manager
PROJECT: AS001-
CS0005
DIV. NOS. 2,3,5
APPROVED BY: Rod Posada, Chief, Engineering
German Alvarez, Assistant General Manager
Mark Watton, General Manager SUBJECT: Request to Approve Lease Amendments with Sprint PCS Assets, LLC, a Delaware Limited Liability Company, for Modifications to Six (6) Existing Communications Facilities Located Throughout
the District
GENERAL MANAGER'S RECOMMENDATION:
That the Otay Water District (District) Board of Directors (Board) authorize the General Manager to execute lease amendments with Sprint PCS Assets, LLC, a Delaware Limited Liability Company (Sprint PCS) for modifications to six (6) existing communications facilities located throughout the District (see Exhibit A for Property locations). COMMITTEE ACTION:
See Attachment A. PURPOSE:
To obtain Board approval authorizing the General Manager to execute lease amendments (see Attachment B) with Sprint PCS that allows modifications to six (6) existing communications facilities located throughout the District. The lease amendments will grant Sprint PCS the right to upgrade their existing site to Long Term Evolution (LTE) technology.
AGENDA ITEM 6d
2
ANALYSIS:
The District currently maintains six (6) lease agreements with Sprint PCS that allow Sprint PCS to operate and maintain unmanned wireless
communication facilities that include panel antennas that are attached to the District’s water reservoirs and enclosures that
contain Sprint PCS’ equipment cabinets. The Sprint sites that are included in the existing lease agreements are at the following
locations, as reflected in Exhibit A:
1. Point Barrow Drive (458-1 & 2 Reservoirs) 2. Weighorst Way (850-3 Reservoir)
3. Bear Mountain Way (1296-1, 2 & 3 Reservoirs) 4. Pence Drive (803-3 Reservoir) 5. Campo Road (832-1 & 2 Reservoirs) 6. Sweetwater Springs Boulevard (Otay Water District Headquarters) Sprint PCS approached the District with a request to perform modifications to the existing wireless communication facilities to upgrade the facilities to LTE technology. Sprint PCS’ scope work
will include switching out existing four (4) foot antennas with
larger six (6) foot antennas as well as the addition of Radio Repeater Units (RRUs) for each new antenna. The new antennas and
RRUs work together as part of Sprint PCS’ LTE upgrade to increase data capacity. Each facility has an existing SDG&E electrical
service/meter and connection to a landline telephone service. As a result of the request from Sprint PCS, the District has required that
the existing leases be amended to memorialize the addition of new
improvements on the District’s property and to strengthen the terms of the existing leases with language that reflects the current District lease terms. The additional language in the proposed lease amendments include terms for the following:
• Security Deposit equal to the sum of two months’ rent
• Elimination of pro-rating language to simplify the billing
process
• 20 percent penalties for late payment
• Non-curable Event of Default for failure to pay rent
• Magnetic mount or other non-destructive alternative attachment
requirement
• Utilities and back-up power provisions
• New Assignment of Lease requirement to assist in documenting
change of ownership
3
As part of the lease amendments the Rent shall be increased on each calendar anniversary of the Commencement Date at a rate of four
percent (4%) per annum or the annual Consumer Price Index change (“CPI”), whichever is greater.
The lease amendments also include a non-refundable administrative fee
of $4,500 for each amendment that will be due within (30) days of the date of execution of the lease amendment by both parties to reimburse
the District for administrative expenses and costs related to the District's supervision and assistance with the construction phases of
the Project.
The District will receive copies of construction drawings, all permits, and approvals by local regulatory agencies prior to granting permission to start construction. Staff agrees with the design concept for the proposed facility construction. FISCAL IMPACT: Joseph Beachem, Chief Financial Officer
The District will continue to receive rent which will now be subject to an annual inflation adjustment of four percent or the annual
Consumer Price Index change (“CPI”), whichever is greater, effective upon the execution of the lease amendments. LEGAL IMPACT:
The lease amendments have been reviewed and approved by District
General Counsel for content and form. STRATEGIC GOAL:
The District ensures its continued financial health through long-term financial planning, formalized financial policies, enhanced budget
controls, fair pricing, debt planning, and improved financial reporting.
DJM/RP:jf P:\WORKING\CELLULAR LEASE FILE\SPRINT\BD 07-03-2013, Staff Report, Sprint PCS_6 Amendments\BD 07-03-2013, Staff Report, Sprint PCS_6 Amendments, (DM).doc Attachments: Exhibit A – Location Map Attachment A – Committee Action
Attachment B-1 - Point Barrow Drive Agreement Attachment B-2 - Weighorst Way Agreement
Attachment B-3 - Bear Mountain Way Agreement Attachment B-4 - Pence Drive Agreement
Attachment B-5 - Campo Road Agreement Attachment B-6 - Sweetwater Springs Boulevard Agreement
ATTACHMENT A
SUBJECT/PROJECT:
AS002-CS0005 AS002-CS0006
AS002-CS0010 AS002-CS0013
AS004-CS0001 AS005-CS0012
Request to Approve Lease Amendments with Sprint PCS Assets,
LLC, a Delaware Limited Liability Company, for Modifications to Six (6) Existing Communications Facilities
Located Throughout the District
COMMITTEE ACTION:
The Finance, Administration, and Communications Committee (Committee) reviewed this item at a meeting held on June 24, 2013 and the following comments were made:
• This item is to request approval to execute lease amendments with
Sprint PCS Assets, LLC, a Delaware Limited Liability Company for modifications to six (6) existing communications facilities located
throughout the District (see Exhibit A for facilities location map).
• The District currently maintains six (6) lease agreements with
Sprint PCS that allow Sprint PCS to operate and maintain unmanned wireless communication facilities.
• Sprint PCS approached the District with a request to perform
modifications to the existing six (6) wireless communication facilities to upgrade the facilities to LTE technology.
• As part of the lease amendments the Rent will be increased four
percent (4%) per year or the annual Consumer Price Index change
(“CPI”), whichever is greater.
• The lease amendments also include a non-refundable administrative
fee of $4,500 for each amendment to reimburse the District for administrative expenses and costs related to the District's
supervision and assistance with the construction phases of the
project.
• In response to an inquiry from the committee regarding contracts
with other cellular providers, staff indicated that the District is currently in discussion with Verizon and T-Mobile for similar
technology upgrades. Eventually, staff will be in discussions with all its cellular site lessees. It was stated that staff will
present the proposed amended lease agreements as each vendor
contacts the District.
• Staff indicated that the lease term is 20 years with the option to
extend the agreement for two (2) additional 5-year terms.
• It was discussed that the lease rates for the six site leases with
Sprint PCS ranges from $2286/month to $2735/month. It was indicated that the reason for the range is the date the agreement is signed and the size of the facility. It was noted that the lease cost is higher if the antennae is mounted on the District’s reservoir versus mounted on a pole.
• Staff indicated that there are a total of 32 site leases with annual revenues of approximately $1.1 million.
• There was discussion of how the District determines the monthly
lease amount and what the competition was for cell sites. Staff indicated that the District had hired a consultant to perform a
study to assure the District was charging market value for its leases. The consultant confirmed that the District was receiving
the highest lease rates for its sites. The consultant also indicated that with the new cellular data technology, the highest
location for an antennae is no longer the best location. Data requires lower antennae sites and this is the direction that
cellular technology is moving towards. The District may have additional interest for its lower situated facilities.
• Staff also noted that the District is approached by vendors on a
regular basis who offer to manage the District’s leases. After reviewing the District’s lease program, these vendors indicate that
they cannot do much for the District as its leases are already at the top of the market.
• It was discussed if the lessee subleases the celluar site and it is
prohibited in the lease agreement, it provides the District an opportunity to renegotiate the lease. At this time, the District
can mark-to-market the lease rate.
Upon completion of the discussion, the committee supported staffs’ recommendation and presentation to the board as a consent item.
ATTACHMENTS B-1 – B-6
SUBJECT/PROJECT:
AS002-CS0005 AS002-CS0006
AS002-CS0010 AS002-CS0013
AS004-CS0001 AS005-CS0012
Request to Approve Lease Amendments with Sprint PCS Assets,
LLC, a Delaware Limited Liability Company, for Modifications to Six (6) Existing Communications Facilities
Located throughout the District
See attached lease agreements.
FIRST AMENDMENT TO LEASE
This First Amendment to Lease (the "First Amendment")is made this day of ,2013,
("Effective Date")by and between Otay Water District ("OTAY")and Sprint PCS Assets,
L.L.C.,a Delaware limited liability company,f/k/a Cox PCS Assets,L.L.C.,a Delaware limited
liability company ("TENANT"),with reference to the facts set forth in the Recitals below:
RECITALS
A.OTAY is the owner of that certain real property and facilities known as the "I.D.10",
458-1-10 and 458-2-10,a Reservoir Site (the "Property").
B.OTAY and TENANT are parties to that certain Lease dated July 19,2001 (the "Lease"or
"Agreement")pursuant to which TENANT is leasing from OTAY land at the Property,together
with the right of access to and from the nearest public right-of-way and the right to install
utilities (collectively,the "Premises").
C.Tenant has requested a modification to the type and mounting of the Improvements
currently on the Premises (the "New Improvements").
D.OTAY and TENANT have agreed to amend the Agreement to memorialize the addition
of the New Improvements to the Premises.
AGREEMENT
NOW,THEREFORE,in consideration of the facts contained in the Recitals above,the
mutual covenants and conditions below,and other good and valuable consideration,the receipt
and sufficiency ofwhich are hereby acknowledged,the parties agree as follows:
1.New Improvements.OTAY consents to TENANT construction and installation of new
communications facilities,as more particularly described and depicted on Exhibit "B-l "which is
attached hereto and made a part hereof.The parties acknowledge and agree that the attached
Exhibit "B-l"is intended to supplement the Exhibit "B"attached to the Agreement.
2.Governmental Approvals.Any required permits for the use or operation of the New
Improvements shall be obtained by TENANT at TENANT'S sole expense.Furthermore,it is
understood and agreed that TENANT'S ability to install the New Improvements is contingent
upon its obtaining all of the certificates,permits and other approvals that may be required by any
Federal,State or Local authorities which will permit TENANT to install and operate the New
Improvements within the Premises.OTAY agrees,at no expense to OTAY,to reasonably
cooperate with TENANT in making application for and obtaining all governmental licenses,
permits and approvals that may be required for TENANT'S intended use ofthe Premises.
3.Amended Provisions.The following provisions shall be amended as follows:
3a.Section 6;Rent shall be replaced with the following:
FIRST AMENDMENT TO LEASE
This First Amendment to Lease (the "First Amendment") is made this day of ____, 2013,
(“Effective Date”) by and between Otay Water District ("OTAY") and Sprint PCS Assets,
L.L.C., a Delaware limited liability company ("TENANT"), with reference to the facts set forth
in the Recitals below:
RECITALS
A. OTAY is the owner of that certain real property located 12887 Weighorst Way, El Cajon,
California a Reservoir Site formerly known as 12885 Jamacha Boulevard, El Cajon, California
(the "Property").
B. OTAY and TENANT are parties to that certain Lease dated August 24, 2000 (the "Lease"
or “Agreement”) pursuant to which TENANT is leasing from OTAY land at the Property,
together with the right of access to and from the nearest public right-of-way and the right to
install utilities (collectively, the "Premises").
C. Tenant has requested a modification to the type and mounting of the Improvements
currently on the Premises (the “New Improvements”).
D. OTAY and TENANT have agreed to amend the Agreement to memorialize the addition
of the New Improvements to the Premises.
AGREEMENT
NOW, THEREFORE, in consideration of the facts contained in the Recitals above, the
mutual covenants and conditions below, and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties agree as follows:
1. New Improvements. OTAY consents to TENANT construction and installation of new
communications facilities, as more particularly described and depicted on Exhibit "B-l " which is
attached hereto and made a part hereof. The parties acknowledge and agree that the attached
Exhibit "B-1" is intended to supplement the Exhibit "B" attached to the Agreement.
2. Governmental Approvals. Any required permits for the use or operation of the New
Improvements shall be obtained by TENANT at TENANT's sole expense. Furthermore, it is
understood and agreed that TENANT's ability to install the New Improvements is contingent
upon its obtaining all of the certificates, permits and other approvals that may be required by any
Federal, State or Local authorities which will permit TENANT to install and operate the New
Improvements within the Premises. OTAY agrees, at no expense to OTAY, to reasonably
cooperate with TENANT in making application for and obtaining all governmental licenses,
permits and approvals that may be required for TENANT’S intended use of the Premises.
3. Amended Provisions. The following provisions shall be amended as follows:
FIRST AMENDMENT TO LEASE
This First Amendment to Lease (the "First Amendment")is made this day of ,2013,
("Effective Date")by and between Otay Water District ("OTAY")and Sprint PCS Assets,
L.L.C.,a Delaware limited liability company,f/k/a Cox PCS Assets,L.L.C.,a Delaware limited
liability company ("TENANT"),with reference to the facts set forth in the Recitals below:
RECITALS
A.OTAY is the owner of that certain real property located on 13635 Bear Mountain Road,
Jamul,California a Reservoir Site (the "Property").
B.OTAY and TENANT are parties to that certain Lease dated July 12,2000 (the "Lease"or
"Agreement")pursuant to which TENANT is leasing from OTAY land at the Property,together
with the right of access to and from the nearest public right-of-way and the right to install
utilities (collectively,the "Premises").
C.Tenant has requested a modification to the type and mounting of the Improvements
currently on the Premises (the "New Improvements").
D.OTAY and TENANT have agreed to amend the Agreement to memorialize the addition
of the New Improvements to the Premises.
AGREEMENT
NOW,THEREFORE,in consideration of the facts contained in the Recitals above,the
mutual covenants and conditions below,and other good and valuable consideration,the receipt
and sufficiency of which are hereby acknowledged,the parties agree as follows:
1.New Improvements.OTAY consents to TENANT construction and installation of new
communications facilities,as more particularly described and depicted on Exhibit "B-l "which is
attached hereto and made a part hereof.The parties acknowledge and agree that the attached
Exhibit "B-l"is intended to supplement the Exhibit "B"attached to the Agreement.
2.Governmental Approvals.Any required permits for the use or operation of the New
Improvements shall be obtained by TENANT at TENANT'S sole expense.Furthermore,it is
understood and agreed that TENANT'S ability to install the New Improvements is contingent
upon its obtaining all of the certificates,permits and other approvals that may be required by any
Federal,State or Local authorities which will permit TENANT to install and operate the New
Improvements within the Premises.OTAY agrees,at no expense to OTAY,to reasonably
cooperate with TENANT in making application for and obtaining all governmental licenses,
permits and approvals that may be required for TENANT'S intended use of the Premises.
3.Amended Provisions.The following provisions shall be amended as follows:
3a.Section 5;Rent shall be replaced with the following:
FIRST AMENDMENT TO LEASE
This First Amendment to Lease (the "First Amendment")is made this day of ,2013,
("Effective Date")by and between Otay Water District ("OTAY")and Sprint PCS Assets,
L.L.C.,a Delaware limited liability company ("TENANT"),with reference to the facts set forth
in the Recitals below:
RECITALS
A.OTAY is the owner of that certain real property and facility known as the "Singing Hills"
(803-3)Reservoir Site (the "Property").
B.OTAY and TENANT are parties to that certain Lease dated December 8,2000 (the
"Lease"or "Agreement")pursuant to which TENANT is leasing from OTAY land at the
Property,together with the right of access to and from the nearest public right-of-way and the
right to install utilities (collectively,the "Premises").
C.Tenant has requested a modification to the type and mounting of the Improvements
currently on the Premises (the "New Improvements").
D.OTAY and TENANT have agreed to amend the Agreement to memorialize the addition
of the New Improvements to the Premises.
AGREEMENT
NOW,THEREFORE,in consideration of the facts contained in the Recitals above,the
mutual covenants and conditions below,and other good and valuable consideration,the receipt
and sufficiency of which are hereby acknowledged,the parties agree as follows:
1.New Improvements.OTAY consents to TENANT construction and installation of new
communications facilities,as more particularly described and depicted on Exhibit "B-l "which is
attached hereto and made a part hereof.The parties acknowledge and agree that the attached
Exhibit "B-l"is intended to supplement the Exhibit "B"attached to the Agreement.
2.Governmental Approvals.Any required permits for the use or operation of the New
Improvements shall be obtained by TENANT at TENANT'S sole expense.Furthermore,it is
understood and agreed that TENANT'S ability to install the New Improvements is contingent
upon its obtaining all of the certificates,permits and other approvals that may be required by any
Federal,State or Local authorities which will permit TENANT to install and operate the New
Improvements within the Premises.OTAY agrees,at no expense to OTAY,to reasonably
cooperate with TENANT in making application for and obtaining all governmental licenses,
permits and approvals that may be required for TENANT'S intended use ofthe Premises.
3.Amended Provisions.The following provisions shall be amended as follows:
3a.Section 5;Rent shall be replaced with the following:
FIRST AMENDMENT TO LEASE
This First Amendment to Lease (the "First Amendment")is made this day of ,2013,
("Effective Date")by and between Otay Water District ("OTAY")and Nextel of California,
Inc.,a Delaware corporation ("TENANT"),with reference to the facts set forth in the Recitals
below:
RECITALS
A.OTAY is the owner of that certain real property and facilities known as the "2-1"Site,at
12118 Campo Road,Spring Valley,California,a Reservoir Site (the "Property").
B.OTAY and TENANT are parties to that certain Lease dated August 14,1998 (the "Lease"
or "Agreement")pursuant to which TENANT is leasing from OTAY land at the Property,
together with the right of access to and from the nearest public right-of-way and the right to
install utilities (collectively,the "Premises").
C.Tenant has requested a modification to the type and mounting of the Improvements
currently on the Premises (the "New Improvements").
D.OTAY and TENANT have agreed to amend the Agreement to memorialize the addition
of the New Improvements to the Premises.
AGREEMENT
NOW,THEREFORE,in consideration of the facts contained in the Recitals above,the
mutual covenants and conditions below,and other good and valuable consideration,the receipt
and sufficiency of which are hereby acknowledged,the parties agree as follows:
1.New Improvements.OTAY consents to TENANT construction and installation of new
communications facilities,as more particularly described and depicted on Exhibit "B-l "which is
attached hereto and made a part hereof.The parties acknowledge and agree that the attached
Exhibit "B-l"is intended to supplement the Exhibit "B"attached to the Agreement.
2.Governmental Approvals.Any required permits for the use or operation of the New
Improvements shall be obtained by TENANT at TENANT'S sole expense.Furthermore,it is
understood and agreed that TENANT'S ability to install the New Improvements is contingent
upon its obtaining all of the certificates,permits and other approvals that may be required by any
Federal,State or Local authorities which will permit TENANT to install and operate the New
Improvements within the Premises.OTAY agrees,at no expense to OTAY,to reasonably
cooperate with TENANT in making application for and obtaining all governmental licenses,
permits and approvals that may be required for TENANT'S intended use of the Premises.
3.Amended Provisions.The following provisions shall be amended as follows:
3a.Section 5;Rent shall be replaced with the following:
ANTENNA DETAILS
A-9
SAN DIEGO MARKET OFFICE
DESCRIPTION DATEBYISSUED FOR 90% CD REVIEW 03/26/13NAB REV.0
PROPRIETARY INFORMATION
THE INFORMATION CONTAINED IN THIS SET OF DRAWINGS IS PROPRIETARY & CONFIDENTIAL TO SPRINT ANY USE OR DISCLOSURE OTHER THAN AS IT RELATES TO SPRINT IS STRICTLY PROHIBITED
9605 SCRANTON RD. SUITE 400 SAN DIEGO, CA 92121
A
Technology Associates
Engineering Corporation Inc.
ISSUED FOR 100% FINAL CD 04/04/13 SMS A
3 NOT USED
4
5
9 6
(N) 3-1/2" DIA ANTENNA MAST MOUNT
MAST MOUNT BRACKET (ALCATEL-LUCENT #849073713),(2) PER RRH (N) RRH
MAIN SUPPORT BRACKET(ALCATEL-LUCENT #849147038)
SIDE SUPPORT BRACKET WITH EARS(ALCATEL-LUCENT #849147053),(2) PER RRH WHEN REQUIRED
ANTENNA MOUNTING7
TOP
FRONTSIDE
MANUFACTURER: ALU MODEL: CDMA/LTE DUAL TECH 4 X 40 W WEIGHT: 60 LBS POWER SUPPLY: -48 VDC POWER CONSUMPTION: <700W TYPICAL
8
RRH MOUNTING DETAIL ANTENNA MOUNTING DETAIL
4-8-
6-FIBERGLASS STEALTH COVER - SIZE & TYPE TO MATCH ANTENNA COVER
SECURE TO (E) WATER TANK USING ADHESIVE
FIBERGLASSSTEALTH COVER
RIGHT ANGLE CONNECTOR
SECURE TO (E)WATER TANK USING ADHESIVE
BOTTOM COVER TO PREVENT VIEW FROM BELOW
FIBERGLASSSTEALTH COVER
SECURE TO (E) WATER TANK USING ADHESIVE (E) WATER TANK
ANTENNA SUPPORT NOTES:1. CONTRACTOR TO VERIFY CLEARANCE AND CONDITIONS OF (E) WATER TANK AT LOCATION OF WORK AND REVIEW DETAILS FOR ANY REQUIRED ADJUSTMENTS.
2. CONTRACTOR TO PROVIDE COMPLETE SHOP DRAWINGS FOR REVIEW PRIOR TO FABRICATION.
3. CONTRACTOR TO NOTIFY A&E OF ANY DISCREPANCIES WITH THE NEW LAYOUT PRIOR TO PROCEEDING.
ALL PIPES, BRACKETS AND MISC. HARDWARE TO BE GALVANIZED UNLESS NOTED OTHERWISE.
NEW SPRINT PANEL ANTENNA (PER ANTENNA)WITH REQ'D 4°DOWNTILT
24"MAX
PE
R
P
L
A
N
10
"
MIN
.
1"
24"MAX
PLAN VIEW
TOP VIEW
SECTION VIEW
(E) WATER TANK
SECURE TO (E)WATER TANK USING ADHESIVE
1ANTENNA SPECIFICATIONS "MAGNEMOUNT" SIDE TANK MOUNT SPECIFICATIONS
FOR MOUNTING SEE:9-
2
ANTENNA SPECIFICATIONS
FOR MOUNTING SEE:3-
FOR MOUNTING SEE:5-
FOR MOUNTING SEE:7-
FOR MOUNTING SEE:7-
FOR MOUNTING SEE:3-
4-8-
1-
4-8-
1-
6-
24"
7'-
0
"
24"
7'-0
"
FIRST AMENDMENT TO LEASE
This First Amendment to Lease (the "First Amendment")is made this day of ,2013,
("Effective Date")by and between Otay Water District ("OTAY")and Sprint PCS Assets,
L.L.C.,a Delaware limited liability company ("TENANT"),with reference to the facts set forth
in the Recitals below:
RECITALS
A.OTAY is the owner of that certain real property located on 2554 Sweetwater Springs
Boulevard,Spring Valley,California (the "Property").
B.OTAY and TENANT are parties to that certain Lease dated August 24,2000 (the "Lease"
or "Agreement")pursuant to which TENANT is leasing from OTAY land at the Property,
together with the right of access to and from the nearest public right-of-way and the right to
install utilities (collectively,the "Premises").
C.Tenant has requested a modification to the type and mounting of the Improvements
currently on the Premises (the "New Improvements").
D.OTAY and TENANT have agreed to amend the Agreement to memorialize the addition
of the New Improvements to the Premises.
AGREEMENT
NOW,THEREFORE,in consideration of the facts contained in the Recitals above,the
mutual covenants and conditions below,and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged,the parties agree as follows:
1.New Improvements.OTAY consents to TENANT construction and installation of new
communications facilities,as more particularly described and depicted on Exhibit "B-l "which is
attached hereto and made a part hereof.The parties acknowledge and agree that the attached
Exhibit "B-l"is intended to supplement the Exhibit "B"attached to the Agreement.
2.Governmental Approvals.Any required permits for the use or operation of the New
Improvements shall be obtained by TENANT at TENANT'S sole expense.Furthermore,it is
understood and agreed that TENANT'S ability to install the New Improvements is contingent
upon its obtaining all ofthe certificates,permits and other approvals that may be required by any
Federal,State or Local authorities which will permit TENANT to install and operate the New
Improvements within the Premises.OTAY agrees,at no expense to OTAY,to reasonably
cooperate with TENANT in making application for and obtaining all governmental licenses,
permits and approvals that may be required for TENANT'S intended use ofthe Premises.
3.Amended Provisions.The following provisions shall be amended as follows:
3a.Section 5;Rent shall be replaced with the following: