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HomeMy WebLinkAbout02-02-11 Board PacketOTAY WATER DISTRICT BOARD OF DIRECTORS MEETING DISTRICT BOARDROOM 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY,CALIFORNIA WEDNESDAY February 2,2011 3:30 P.M. AGENDA 1.ROLL CALL 2.PLEDGE OF ALLEGIANCE 3.APPROVAL OF AGENDA 4.APPROVE THE MINUTES OF THE SPECIAL MEETING OF MAY 17,2010 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 6.PRESENTATION OF CERTIFICATES OF RECOGNITION TO LEE &RO,INC., RBF CONSULTING,CCL CONTRACTING,INC.AND HARRIS &ASSOCIATES, INC.FOR THEIR WORK AND PROFESSIONALISM IN THE SUCCESSFUL COM- PLETION OF THE JAMACHA PIPELINE PROJECT (RIPPERGER) CONSENT CALENDAR 7.ITEMS TO BE ACTED UPON WITHOUT DISCUSSION,UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PAR- TICULAR ITEM: a)APPROVE THE REIMBURSEMENT AGREEMENT BETWEEN THE DIS- TRICT AND THE COUNTY OF SAN DIEGO FOR THE RELOCATION OF AN 8-INCH SEWER MAIN b)APPROVE AN ENGAGEMENT LETTER WITH THE AUDITING FIRM OF DIEHL,EVANS &COMPANY,LLP TO PROVIDE AUDIT SERVICES TO THE DISTRICT FOR THE FISCAL YEAR ENDING JUNE 30,2011 c)AUTHORIZE THE GENERAL MANAGER TO NEGOTIATE AND ENTER INTO AN AGREEMENT WITH DMI DIGITAL MAPPING INC.IN AN AMOUNT NOT TO EXCEED $68,000 FOR ORTHOPHOTOGRAPHY SER- VICES 1 ACTION ITEM 8.ENGINEERING AND WATER OPERATIONS a)APPROVE THE WATER SUPPLY ASSESSMENT REPORT,AS RE- QUIRED BY SENATE BILL 610,FOR THE SAN DIEGO-TIJUANA CROSS BORDER FACILITY PROJECT (KENNEDY) INFORMATIONAL ITEMS 9.THIS ITEM IS PROVIDED TO THE BOARD FOR INFORMATIONAL PURPOSES ONLY.NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEMS: a)FISCAL YEAR 2011 FIRST QUARTER CAPITAL IMPROVEMENT PRO- JECT UPDATE REPORT (KAY) 10.BOARD a)DISCUSSION OF 2011 BOARD MEETING CALENDAR REPORTS 11.GENERAL MANAGER'S REPORT a)SAN DIEGO COUNTY WATER AUTHORITY UPDATE 12.DIRECTORS'REPORTS/REQUESTS 13.PRESIDENTS REPORT RECESS TO CLOSED SESSION 14.CLOSED SESSION a.CONFERENCE WITH LEGAL COUNSEL -EXISTING LITIGATION [GOV- ERNMENT CODE §54956.9(a)] (I)INFRASTRUCTURE ENGINEERING CORP.v.OTAY WATER DIS- TRICT,COUNTY OF SAN DIEGO,SUPERIOR COURT,CASE NO. 37-2008-00093876-CU-BC-CTL RETURN TO OPEN SESSION 15.REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION.THE BOARD MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION 16.ADJOURNMENT 2 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 January 28,2011,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 January 28,2011. 3 AGENDA ITEM 4 MINUTES OF THE BOARD OF DIRECTORS MEETING OF THE OTAY WATER DISTRICT May 17,2010 1.The meeting was called to order by President Bonilla at 3:30 p.m. 2.ROLL CALL Directors Present:Bonilla,Breitfelder,Croucher,Lopez and Robak Director Absent:None Staff Present:General Manager Mark Watton,Assistant General Manager of Administration and Finance German Alvarez,Assistant General Manager of Engineering and Water Operations Manny Magana, General Counsel Yuri Calderon,Chief of Information Technology Geoff Stevens,Chief Financial Officer Joe Beachem,Chief of Engineering Rod Posada,Chief of Operations Pedro Porras, Chief of Administration Rom Sarno,District Secretary Susan Cruz and others per attached list. 3.PLEDGE OF ALLEGIANCE 4.APPROVAL OF AGENDA A motion was made by Director Breitfelder,seconded by Director Lopez and carried with the following vote: Ayes: Noes: Abstain: Absent: Directors Bonilla,Breitfelder,Croucher,Lopez and Robak None None 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. WORKSHOP 6.ADOPT RESOLUTION NO.4159,APPROVING THE FISCAL YEAR 2010-2011 OPERATING AND CAPITAL BUDGETS AND ADOPT WATER AND SEWER RATE INCREASES;APPROVE FUND TRANSFERS FOR POTABLE,RECYCLED,AND SEWER;ADOPT ORDINANCE NO.525 TO AMEND APPENDIX A OF THE CODE OF ORDINANCES WITH THE PROPOSED WATER AND SEWER RATE 1 INCREASES AS PRESENTED IN THE FY 2010-2011 OPERATING AND CAPITAL BUDGET;AND DIRECT STAFF TO SEND CUSTOMERS NOTICE OF THE RATE INCREASES (BEACHEM) Chief Financial Officer Joe Beachem indicated that staff would be presenting a PowerPoint presentation discussing and recommending approval of the Fiscal Year 2011 Operating Budget of $77 million,the Capital Improvement Program (CIP)Budget of $28.5 million,a 10.9%rate increase for potable and recycled customers,a 6.8% rate increase for sewer customers,and associated fund transfers.Mr.Beachem stated that upon the board's approval,the District will provide a 30-day notice of the rate increases to its customers.He noted that the District has approved a five-year rate plan and the notice is provided to customers to make them aware of the proposed increase.Mr.Beachem stated that the proposed water and sewer rate increases will be implemented on January 1,2011. Chief Financial Officer Beachem discussed the District's rate model which was utilized to determine the rate increases for the FY 2011 Operating and CIP budgets.The model includes information such as the District's beginning balances,anticipated County Water Authority (CWA)and Metropolitan Water District (MWD)increases,a number of assumptions,as well as targets for debt coverage and reserves.He indicated that the rate increase is primarily due to external factors which include increases from the District's wholesale suppliers;CWA,MWD and the City of San Diego.MWD and CWA have increased their rates which has increased the District's costs by $1.6 million (MWD increased its cost to CWA 12.2%and CWA increased its cost to the District 11.3%).He noted that 65%of the District's budget would go towards these increases.He also indicated that staff has estimated that the reclaimed rate increase from the City of San Diego would be approximately 4.5%per year from 2007 forward and is expected to become effective about six (6)months into the fiscal year.Staff also noted that increases for sewer services will be approximately 5.9%or $57.600 from the Public Utilities Department of the San Diego Metropolitan Wastewater Commission and 14.7%or $33,900 from the Spring Valley Sanitation District.These increases have also been incorporated into the budget.He stated that the District's Proposition 218 notice to its customers last year had authorized the District to pass-thru rate increases from the District's wholesale suppliers to its customers. The District's CIP Plan will require funding for improvements to the District's system and replacing infrastructure to meet customer needs which also pushes rates up. Also,impacting rates is reduced water sales due to rainfall,conservation and economic difficulties.However,through Strategic Planning,the District has increased its efficiency and staff has been able to reduce its Operations and Material (O&M) costs by $349,500.These internal efficiencies have helped offset the impact of the external increases,reducing the proposed rate increase to 10.9%instead of 12.7%. Chief Financial Officer Beachem discussed the District's reserve policy and presented a chart that showed its FY 2011 projected beginning reserve balances of $97.2 million and target of $53.8 million.He indicated that reserves will be slightly above its target levels primarily because of the debt issuance that the Board recently approved to fund the District's CIP over the next few years.He stated that each year the District's 2 reserve balance will remain above its target level and will be built into the rate structure.To balance out the District's reserve target,he stated that staff is recommending a transfer of $14.9 million and indicated that this request is in compliance of the District's reserve policy. In response to a question from Director Breitfelder,Chief Financial Officer Beachem stated that the reserve balances are much above target levels due to the issuance of debt to cover the cost of CIP projects for a few years.By issuing debt to cover a few years of CIP projects as opposed to one year,the District is more cost efficient as it reduces the cost of issuing debt. Chief Financial Officer Beachem discussed the District's debt coverage ratio and indicated that the District's target is 150%with a minimum of 125%.He stated that this target excludes growth revenues,as rating agencies want to assure that when there is no growth that the agency can stay above its minimum coverage ratio with operating revenues alone.He stated that maintaining a ratio near 150%is important especially when issuing debt and becoming a viable partner for significant contracts. He also discussed the District's Other Post Employment Benefits (OPEB)fund.He indicated that the bi-annual actuarial evaluation is complete and is being used to calculate the District's Annual Required Contribution (ARC)to PERS.The OPEB payments are budgeted to be consistent with prior years,accounting rules and Board direction.The District's OPEB fund will be utilized to fund any liabilities that were incurred from the past.It is anticipated that with the market recovery,when the PERS OPEB Fund and the District's OPEB Fund are combined,the District's OPEB liability will be fully funded.This is an advantage in terms of credit rating.Currently,the District's credit rating is a solid AA from both Fitch Ratings (upgraded in April 2010) and Standards &Poors (upgraded in September 2008). He presented a slide showing the results of a member agency water rates survey for customers utilizing 10-15 units of water per month.The slide indicated that the District is the yth lowest water cost provider of the 23 agencies throughout the San Diego region.At the request of Director Robak,Chief Financial Officer Beachem stated that staff would provide to the Board the results of the District's position among the 23 agencies for customers utilizing 20 to 30 units of water per month. Chief Financial Officer Beachem discussed sewer rates and indicated that staff is proposing a 6.8%sewer rate increase because of increased charges from the City of San Diego's Public Utilities Department -Wastewater Branch ($57,600),Spring Valley Sanitation District ($33,900),and other factors.Helping to offset the sewer cost increases,the District had reduced its labor and benefits costs by approximately $213,000.A slide showing the results of a survey of a comparison of sewer rates indicated that the District was the 10th lowest cost provider among the 32 agencies in the County providing wastewater services. Chief of Information Technology Geoff Stevens indicated that the District's Strategic Planning process has been in place for ten years now.The process is made up of three 3-year cycles (FYs 2003-05,2006-08,and 2009-2011)and the District is in its third year of FY 2009-11.He stated that the District has been receiving the benefits of the plan through increased efficiency.He presented a graph that showed a 12% 3 increase in the ratio of customers per employee and indicated that the District has reduced 16 staff positions since FY 2007.Chief of Information Technology Stevens indicated that a combination of reducing staff and outsourcing some staff positions have resulted in an overall total savings of $1.8 million in the District's FY 2011 Operating Budget. Chief of Information Technology Stevens stated that the Information Technology (IT) Department is currently focusing on an Asset Management Plan which will assist staff to increase the efficiency of maintaining and monitoring the District's fixed assets (infrastructure,pipelines,reservoirs,etc.)worth approximately $600 million.In addition,the District has implemented a report manager system,called SharePoint, which constantly collects information from all of District systems from which customized reports may be generated much more easily.SharePoint has improved the efficiency of producing reports and has made data more immediately available to staff. Chief of Administrative Services Rom Sarno reported that the District has implemented NEOGOV,a system that automates and streamlines the recruitment process.The new system now allows applicants to apply online through the system and staff is able to rate the experience and education of all applicants in the system.The system then provides a rating for each applicant which eliminates a lot of data input for staff.He also indicated that the Administrative Services Department eliminated two staff positions,a warehouse/delivery worker and a facilities maintenance technician.In collaboration with the Engineering Department,he reported that the District's landscaping standards have been revised and will be referred to for the design and development of the District's facilities.It was indicated that the landscaping standards include the removal of some of the bushes and plants at District facilities to increase water conservation and lower the cost of maintenance.The District has,thus far, saved over 60%in landscape maintenance costs compared to FY 2007-08.In addition,he noted that the removal of the bushes and plants has improved the security of the facilities by allowing neighbors to clearly see and report any unusual activity. Security standards for the design of new facilities were also revised and implemented to include uniform templates and hardware which assists in expediting maintenance and repairs.Chief of Administrative Services Sarno further shared that the District's Human Resources Department now contracts with a mobile unit to perform employee drug tests.This eliminates travel-time and minimizes down-time for the approximately 72 employees each year who are randomly selected to be tested. In the Finance Department,Chief Financial Officer Joe Beachem indicated that the Finance Department has been reduced by one (1)full-time employee,and that due to the District's automated meter reading (AMR)program and the outsourcing of meter c1eanouts,the District was able to reduce the number of Meter Reader positions from nine (9)to five (5).Mr.Beachem also reported that the implementation of e-billing and bill warehousing has reduced printing,mailing,and postage costs.He stated that bill warehousing has also improved the District's collection process allowing staff to act earlier and take more efficient action on delinquencies. Chief of Water Operations Pedro Porras reported that the Operations Department outsourced a laboratory analysis position that was vacated through an employee's 4 early retirement.The outsourcing of this position saved the District a net of $71 ,000 per year and also eliminated the need for one (1)District vehicle.In addition,the Operations Department reallocated staff which resulted in a reduction of one (1)crew leader position.Mr.Porras also reported that there was a net savings of $29,000 in chlorine costs due to a competitive bidding process and savings have also been realized through the District's Fleet Management Program which has saved approximately $46,300 in FY 2010 through a 20%reduction in fuel use. Chief of Engineering Rod Posada reported that the Inspection and Survey Division is now using an IMS Integration System that enables staff to file inspection reports real time.The system has reduced workload and has allowed the District to reduce Inspection staff from five (5)full-time positions to three (3).It was also reported that the Public Services technicians are now providing administrative assistance to the Engineering Construction Department by taking over the duties of CIP development reports.This change will allow Engineering Technicians to focus on the drafting and designing of District facilities. Chief of Engineering Posada provided an update of the District's CIP program and indicated that growth has slowed due to the recession.He indicated that the housing market will remain flat in the next year,but an up-turn is anticipated in a couple of years.It was noted that one positive aspect is that 42%of the new industrial land and 20%of the new residential land in San Diego County are all located within the District's boundaries and provides an excellent opportunity for growth in the future. Chief of Engineering Posada stated that with the assumption of growth remaining flat in FY 2011,the District's six-year CIP expenditure plan is as level as possible and will include a couple of projects that will require a considerable amount of expenditures in FY 2011 and 2012.In addition,it is expected that between January 2010 and December 2011 the District will have an increase in construction cost of approximately 7.3%based on the CWA's Construction Cost Index increase of 9.6%for the next two (2)years.He discussed several planning documents that were used to develop the District's CIP program,which include the following:Integrated Water Resources Plan, Water Resources Master Plan,Sewer System Management Plan,Sub-Area Master Plan,Urban Water Management Plan,Strategic Plan,Asset Management Plan,and Waste Water Master Plan.It was indicated that last fiscal year staff requested approximately $222 million for the six-year CIP Budget,but this year staff is requesting $181.4 million for the six-year CIP Budget.This is a substantial reduction of approximately $40 million due to new water resources that will no longer require some facilities,such as pipelines and reservoirs,to be built.Graphs were provided that showed the expenditures for the $181.4 million dollar projects over the next six (6) years and high profile CIP projects for FY 2011 that totaled $28.5 million dollars. Finance Manager Rita Bell discussed the District's Operating Budget,which included the process,highlights and details of the budget.She indicated that each year the District's budget process involves the alignment of the rate model,Operating and CIP budgets and consideration of growth and cost changes in labor and the CIP program. Input from staff members is also reviewed;different budget methodologies and past projections are analyzed,and the Operating and CIP Budget requests are reviewed and adjustments are made where necessary.She stated the challenges in developing the budget are the increase in wholesale water costs,the decrease in water sales, 5 focusing the CIP on new supplies of water,the revised capacity and annexation fees, maintaining the reserve levels and debt coverage ratio,and maintaining the District's water and sewer rate position relative to other agencies in the region.A chart was presented that compared the actual growth in FY 2008-09 and the projected growth in FY 2010-13.It was indicated that individual water customer accounts will increase in the future,but at a much slower rate than in the past. Finance Manager Bell stated that although meter sales are gradually increasing,the District's potable water volume has decreased approximately 10.3%(3,426 AF)and potable water sales revenues decreased .2%($140,600)to about $1.3 million.In addition,she stated that MWD's and CWA's fixed fees have increased and indicated that those charges will be a 100%direct pass-thru to the District's customers.To be in compliance with Best Management Practices (BMP)11,Finance Manager Bell noted that the District's fees are set to collect 28%of sales in fixed and the remaining in variable. She indicated that the District's sales volume for recycled water has decreased about 5.7%,but recycled water sales are up .2%($18,100)because of the District's rate increases.System fees remain relatively flat.It was also reported that energy fees have decreased because of low volume,and penalty fees have remained the same. Finance Manager Bell discussed the District's sewer revenues and stated that staff is proposing a 6.8%rate increase for sewer services.Sewer fees for residential and multi-residential customers will be based on their average water consumption in the winter,and sewer fees for the remaining sewer customers will be based on their annual water consumption.She discussed other District revenues which include capacity fee revenues which have decreased due to decreased development within the District and betterment fees have increased to about $86,000 due to an increase in the workload for maintaining District facilities.Annexation fees are not expected in FY 2011,but staff does anticipate annexations in the future.Property tax revenues have decreased about 1%and the County of San Diego Assessor's Office reported that Chula Vista's assessed property values have decreased about 3.4%this year. She indicated that the District's potable and recycled water costs have decreased $798,300 (2.2%),due to a combination of cost increases and volume decreases.The District's fixed cost increases include MWD and CWA fixed increases of $1.1 million which will be passed-thru to District customers.Staffing has been reduced from 166 to 159 full-time equivalent (FTE)employees resulting in a decrease in salaries and benefits of $463,400 (2.7%).It was noted that staff plans to charge more labor to the District's CIP budget,which will reduce its Operating budget by $557,900.She stated that administrative expenses have increased approximately $262,400,but will be reduced by $10,000 as President Bonilla requested that the directors'fees be reduced by $10,000.This request will reduce the administrative budget by $252,400 which will be reflected in the District's final budget.The District's budget for materials and maintenance has decreased by $32,100.She presented a slide which summarized that total revenues from potable,recycled and sewer which is expected to be $77,003,900. 6 Chief Financial Officer Beachem indicated that the District's FY 2010-2011 balanced budget meets the needs of its customers and is supported by a 10.9%potable and recycled water rate increase,and a 6.8%sewer rate increase.He stated that staff was recommending that the board: 1)Adopt Resolution No.4159 to approve the FY 2010-2011 Operating and CIP Budget; 2)Approve the fund transfers; 3)Approve Ordinance No.525 to amend Appendix A of the Code of Ordinances with the proposed water and sewer rate increases;and 4)Direct staff to send notices of the rate increases to the District's customers In response to a question from Director Breitfelder,Finance Manager Bell stated that the District's recycled water volume has decreased about 8%because its customers are conserving water.The District's largest recycled water customer is the City of Chula Vista who is undergoing budget constraints and consequently has reduced its water consumption and implemented changes to its irrigation patterns.In addition, South Bay Expressway is also watching their budget and,as a result,is using less recycled water for the SR 125 landscaping area.She indicated that weather is also a factor in the decrease of the District's recycled water sales due to increased rain this season. In response to a question from Director Breitfelder,Chief of Engineering Posada stated that the CIP Budget was affected by the increase in material costs.President Bonilla also noted that inflation has affected the District's CIP Budget. In response to a question from Director Croucher,Chief Information Officer Stevens stated that nine (9)of the 16 FTE reductions were from the Engineering Department. He further shared that a historical chart comparing the District's in-house versus outsourcing of employees is available for the board's review. Director Robak stated that the District's FY 2010-2011 Budget includes a budgeted 4.5%inflator for the City of San Diego's water supply fee and inquired if that fee was retroactive.Chief Financial Officer Beachem stated yes and that the inflator was built into the budget each year since 2007,increasing the cost per AF from $350 in FY 2008 to $417 in FY 2011.Staff indicated that the budget reflects that that the new rate would only be implemented by the City for water sold from January 1,2011 and forward. In response to a question from Director Robak,staff indicated that the District's water purchase from CWA is an allocation,not an entitlement,and is based on a five-year rolling average.It was indicated that it is expected that after a number of years,CWA would adjust the allocation based on updated consumption numbers.As the District's consumption is dropping,it is expected that the allocation from CWA would also drop which could expose the District to some penalties (double or triple our rate from CWA). At the request of Director Robak,Chief Financial Officer Beachem provided additional details of the District's debt coverage ratio and indicated that it should be at or above 150%.In addition,it was noted that staff has taken a conservative approach by not 7 depending on growth in the future,so capacity fees are not calculated into the District's debt coverage ratio. Director Robak inquired if the vacant full-time positions,which were not actively being recruited for,were vacated by retirees or employees who decided to leave.General Manager Watton stated that the positions were vacated by both retirees and employees who left.He indicated that the vacated positions were re-evaluated and the District decided not to recruit for the positions. In response to a question from Director Robak,Finance Manager Bell stated that no net labor savings were reported in the efficiency savings chart for FY 2008 because it included an estimated $150,000 landscaping contract at that time.The actual cost of the contract came in at $85,000 annually for the next three (3)fiscal years.So the savings was based on what staff estimated at that time.She stated that sometimes, staff is also shifted to other positions where there is a need and not laid off. Director Robak inquired if the increased efficiencies in each department were a result of collaborated ideas from the District's management team or employees.General Manager Watton stated that ideas and input from both the management team and the employees helped increase the District's efficiencies.Also,the District's Strategic Plan played a role with increased efficiencies in reporting and outsourcing wherever possible.Chief Financial Officer Beachem added that the District's Strategic Plan was a district-wide evaluation and was prepared by many ideas across-the-board (management and line staff). Director Robak inquired about the North and South Interconnection Project,wherein General Manager Watton stated that after further staff review,it was decided that it would be more feasible to develop the project in the Sweetwater area instead of Proctor Valley.He stated that the Sweetwater area will increase the facility's flow of water and will not be subject to the growth curve in the Proctor Valley area.He also indicated that the District's budget shows what next year's expenditures will be,which will be significant because of the project's design work and the environmental impact report. In response to a question from Director Robak regarding the District's tax revenue decrease,General Manager Watton stated that assessed values for properties in Chula Vista was reduced by 3.4%.It was noted that the County of San Diego's Tax Collector automatically reviews tax evaluations and is only 18%through its re- assessment of properties in Chula Vista.The District receives rental for several rental properties such as cell sites and the golf course. In response to a question from President Bonilla,Finance Manager Bell indicated that budgeted water sales was $49 million in FY 2009,$56.3 million in FY 2010,and $56.4 million in FY 2011. President Bonilla stated that he expected to see a higher savings in the District's annual energy expenses.Finance Manager Bell stated that the pricing of energy is difficult to project and noted that the District's energy costs for each of its facilities are different and depends on when pumping is taking place.To get an estimated cost of 8 the District's annual energy expenses,staff averages out the expense from the prior fiscal year and adjusts it for volume and pricing.She noted that the District's FY 2009 energy costs were lower than anticipated by about $117,000 because of the reduced volume. President Bonilla stated that while efficiency seems to be the District's main focus, particularly with the reduction of personnel as the District's informational technology and data-driven systems become more sophisticated,the District acknowledges that the employees are its most valuable and essential asset.The District also recognizes that investing in its employees and providing them with support and an opportunity to promote will enhance efficiencies even more. General Manager Watton stated that within the past year,the District has demonstrated its support to its employees by promoting three staff members:1)a warehouse employee was promoted to a purchasing position,2)a lead man was promoted to a supervisor position,and 3)a meter reader was promoted to a water operator position.Each member attended training courses to obtain certification that was required to fill the promotional positions. President Bonilla stated that the full board has the utmost respect and support for its staff members.He indicated that it is important for the District to have a balanced budget and place its emphasis and resources where needed,but more importantly are the employees who serve and take pride in the District. On behalf of the District's employees,General Manager Watton stated that the board's support for staff,from management to line staff,is greatly appreciated. Chief of Information Technology Beachem thanked all staff members,especially the District's accountants,for their assistance with the development of the proposed FY 2010-11 Budget. A motion was made by President Bonilla,seconded by Director Robak and carried unanimously with the following votes: Ayes: Noes: Abstain: Absent: Directors Bonilla,Breitfelder,Croucher,Lopez and Robak None None None to approve staffs'recommendations. 7.ADJOURNMENT With no further business to come before the Board,President Bonilla adjourned the meeting at 4:55 p.m. 9 ATTEST: District Secretary President 10 AGE DA ITEM 7a STAFF REPORT MEETING DATE:February 2,2011TYPEMEETING:Regular Board SUBMITTED BY:Daniel Kay }>\.i- Associate Civil Engineer Ron Ripperger ~ Engineering Manager PROJECT/ SUBPROJECT: 82023-001103 DIV.5 NO. APPROVED BY: (Chief) APPROVED BY: (Ass!.GM): SUBJECT: ~,Rod Posada ,()0"'4 \. Chief,Engineering Manny Magafia-m.lA.a oft -..... Assistant General ~~nager,Engineering and Operations Approval of a Reimbursement Agreement Between Otay Water District and the County of San Diego for the Relocation of an 8-Inch Sewer Main GENERAL MANAGER'S RECOMMENDATION: That the Otay Water District (District)Board of Directors (Board) authorizes the General Manager to execute a Reimbursement Agreement between the District and the County of San Diego (County)for the relocation of an 8-inch sewer main (see Exhibit A for Project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to enter into a Reimbursement Agreement (see Exhibit B)with the County to relocate an existing 8-inch sewer main due to the construction of a new drainage culvert in Calavo Drive,Spring Valley. ANALYSIS: The County has identified an undersized culvert for storm water drainage in Calavo Drive and has developed plans to construct a new larger culvert to increase the capacity.The District currently owns an 8-inch sewer main that crosses the drainage culvert perpendicularly and is within the County's Right-of-Way (ROW).The County owns prior and superior rights as their ROW was established before the District's sewer main was installed.Therefore,the District must reimburse the County for the work required to relocate the existing sewer main. The nature of the work is to relocate 160 linear feet of 8-inch sewer to cross above the new storm drain culvert and install two new manholes.The County plans to bid the work in May,begin construction in June,and complete the Project by October 2011.The County estimates the relocation construction will cost approximately $40,000. FISCAL IMPACT:/-~7 / Funding for the Project comes from Sewer Main Utility Relocation." crp project,S2023,"Calavo Drive The total budget for CIP S2023,as approved in the FY 2011 budget, is $65,000.Total expenditures,plus outstanding commitment and forecast to date,are $64,185.See Attachment B for budget detail. Based on a review of the financial budgets,the Project Manager has determined that the budget is sufficient to support the Project. Finance has determined that funding will be available for crp S2023. Funding will be 100%from the Replacement Fund. STRATEGIC GOAL: This Project supports the District's Mission statement,"To provide the best quality of water and wastewater service to the customers of the Otay Water District in a professional,effective,and efficient manner,"and the District's Strategic Goal to,"Design and construct new infrastructure -satisfy current and future water needs for Potable,Recycled,and Wastewater Services." LEGAL IMPACT: The Districts'previous legal counsel and the current legal counsel have reviewed the Reimbursment Agreement. 2 P:\WORKING\CIP S2023 Calavo Dr.Sewer Main utility Relocation\Staff Reports\BD-02-11,Staff Report, Calavo Dr.Sewer Agreement,(DK-RR).doc DK/RR:jf Attachments:Attachment A -Committee Action Attachment B -Budget Detail Exhibit A Project Location Map Exhibit B -Reimbursement Agreement 3 C>IID 11=1"T S2023-001103 ATTACHMENT A Approval of a Reimbursement Agreement Between Otay Water District and the County of San Diego for the Relocation of an 8-Inch Sewer Main COMMITTEE ACTION: The Engineering,Operations,and Water Resources Committee reviewed this item at a Committee Meeting held on January 18,2011 and the following comments were made: •Staff is requesting that the Board authorize the General Manager to execute a Reimbursement Agreement between the District and the County of San Diego (County)for the relocation of an 8-inch sewer main. •Staff indicated that the County plans to increase the capacity for storm water drainage in Calavo Drive by constructing a new larger culvert.An 8-inch sewer main,owned by the District, crosses the culvert and is within the County's Right-of-Way (ROW). •It was noted that the County has superior rights to the ROW as it was established prior to the installation of the District's 8-inch sewer.Staff indicated that the District will have to reimburse the County for the work that is required to relocate the sewer main . •Staff stated that the work will cost approximately $40,000 and involves relocating 160 linear feet of 8-inch sewer to cross above the County's new culvert,and also includes the installation of two new manholes.Staff indicated that work will begin in June 2011 and is anticipated to be completed by October 2011. Following the discussion,the Committee supported staffs' recommendation and presentation to the full board as a consent item. ATTACHMENT B SUBJECT/PROJECT:f Approva l~f-·~·····-R~irr;b~r s ernent Ag~~~rr;~~t·B-et-~-ee;-6t·~y S2023-001103 IWater District and the County of San Diego for the, Relocation of an 8-Inch Sewer Main I.......,,,.......",y'" OlayWaterDistrict 52023-Calavo Drive Sewer Main Utility Relocation I.....................................................................................J Date Updated:January04,2011 Outstanding ProjectedFinalBudgetCommittadExpandllurasCommitment&Vendor/Comments 65,000 CostFor8C8st Planning Labor 1,480 1,480 -1,480 STAFF Professional Legal Fees 520 520 -520 GARCIA CALDERON &RUIZLLP Consultant Contracts 2,185 2,185 .2,185 LEE&RO INC Total Planning 4,185 4,185 .4,185 Design Labor 10,000 6,325 3,675 10,000 STAFF Total Design 10,000 6,325 3,675 10,000 Construction Labor 10,000 .10,000 10,000 STAFF Construction 40,000 .40,000 40,000 COUNTY OF SAN DIEGO·DPW Total Construction 50,000 -50,000 SO,OOO Grand Total 64,185 10,510 53,675 64,185 NEW MORNIN STAR DR I OLVERA RO PROJECT SITE •EXISTING SEWER MANHOLE -EXISTING SEWER MAIN .... "..... NPERIAL. BEACH VICINITY MAP ...:o LEGEND ~o -0(.) "'lN~I-.....====::::::=--_L~__~~-....:.-I .-:0~)(w OTAY WATER DISTRICT CALAVO DRIVE SEWER MAIN UTILITY RELOCATION LOCATION MAP EXHIBIT A CIP 82023 EXHIBIT B REIMBURSEMENT AGREEMENT BETWEEN THE COUNTY OF SAN DIEGO AND OTAY WATER DISTRICT FOR RELOCATION OF UTILITIES IN CONNECTION WITH THE CALAVO DRIVE IMPROVEMENT PROJECT THIS AGREEMENT executed this day of ,20_,by and between the County of San Diego,a political subdivision of the State of California,hereinafter referred to as "COUNTY",and the Otay Water District,a municipal water district having its office and principal place of business at 2554 Sweetwater Springs Blvd,Spring Valley,California,hereinafter referred to as "DISTRICT." WHEREAS,the County of San Diego,Board of Supervisors,authorized the design and construction of drainage structure improvements within Calavo Drive,south of the intersection of Louisa Drive and Calavo Drive in the vicinity of Valle De Oro (hereinafter referred to as "Project");and WHEREAS,COUNTY has informed DISTRICT that certain existing sewer facilities of DISTRICT located within Calavo Drive conflict with the Project and that,since the COUNTY has prior rights in the area covered by the Project,DISTRICT must relocate or be responsible for the costs of relocation of said facilities to accommodate the Project improvements;and WHEREAS,DISTRICT has requested that COUNTY include within the construction contract for the Project,bid items related to the relocation and installation of the sewer facilities at issue,which relocation will generally include new sewer pipe,manholes,private service laterals with right-of-way c1eanouts and related appurtenances all as more particularly detailed in the Plans for Construction of Calavo Drive,RS 2249 dated ,as revised and finally approved by District on ____and provided to County on .(hereinafter "District Sewer Facilities");and WHEREAS,the COUNTY has included or is prepared to include the relocation of the District Sewer Facilities in the plans and specifications for the Project and has agreed to include these facilities as part of the contract to be awarded and managed by the COUNTY for the Project,provided that DISTRICT reimburses COUNTY for the cost to relocate the District Sewer Facilities and assumes ownerships and responsibility for the facilities once they are constructed. AGREEMENT NOW THEREFORE,for mutual and valuable consideration and in consideration of the covenants and agreements contained herein,it is agreed between the Parties hereto as follows: 1.COUNTY Responsibilities.COUNTY shall competitively bid,award,and administer a contract (hereinafter the "Contract")to construct the Project.The bid documents for the Contract shall include the District Sewer Facilities as a separate bid line item. 2.DISTRICT Responsibilities.DISTRICT will furnish engineering,plans,specifications, an engineer's estimate,administration,and other support and documentation as is reasonably required by COUNTY to coordinate the design and construction of the District Sewer Facilities into the COUNTY's bid documents for the Project.Following award of the Contract,DISTRICT shall provide timely inspection,engineering support,and other documents and services reasonably requested by COUNTY to avoid any delay or increased cost in the completion of the Project as a result of the inclusion of the District Sewer Facilities in the Project. 3.Communications with Project Contractor.All communications between the Project contractor and DISTRICT will be coordinated through the County Resident Engineer. 4.Change Orders.DISTRICT shall approve all change orders necessary to relocate and construct the District Sewer Facilities.DISTRICT shall not unreasonably condition,delay or deny the approval of any change orders.Change orders for the District Sewer Facilities may be initiated by the DISTRICT or the COUNTY,but shall not be issued to the contractor unless approved by DISTRICT.DISTRICT shall participate with COUNTY in the negotiation (unless prohibited from doing so by the Project contract)of the price of any change orders with the Project contractor. (a)COUNTY Initiated Change Orders:In those instances where the COUNTY requests a change order,the COUNTY shall submit a written request for changes to the DISTRICT for the DISTRICT'S written approval.Such changes,once approved by DISTRICT,shall be paid for by DISTRICT and made at no cost to the COUNTY. Nothing herein shall be construed as granting a right to the Project contractor to demand acceptance of such changes. (b)DISTRICT Initiated Change Orders:DISTRICT may seek a change in the plans,specifications,character of work,or quantity of work for the District Sewer Facilities by change order provided the proposed change order is consistent with any limits on change orders imposed by State law,County ordinances or County policy. Proposed change orders shall be in writing and state the dollar value of the change, any adjustment in contract time,and shall provide for the DISTRICT's,COUNTY's,and Project contractor's signatures indicating acceptance.DISTRICT shall be solely responsible for the cost of all DISTRICT-initiated change orders,including but not limited to any increased costs to COUNTY resulting from the implementation of the change order.DISTRICT shall provide all DISTRICT initiated change orders to the County Resident Engineer to thereafter be forwarded by County to the Project contractor.COUNTY may decline to forward a DISTRICT-initiated change order to the Project contractor if COUNTY determines that inclusion of the change order could increase the COUNTY's Project costs. 5.Extra Work:In the event DISTRICT should request that extra work be performed in connection with the District Sewer Facilities,DISTRICT shall forward the request for extra work to the County Resident Engineer.The COUNTY shall determine if the extra work can be added to the scope of work for the Project.COUNTY shall not unreasonably delay,condition or deny the inclusion of extra work into the scope of work for the Project.COUNTY shall forward the request for extra work County Activity No.1012388 to the Project contractor for consideration and possible acceptance.DISTRICT shall participate with COUNTY in the negotiation of the price of any extra work with the Project contractor.DISTRICT shall be solely responsible for the cost of the extra work and for any increased Project costs attributable to the extra work. 6.Notice of Differing Site Conditions:The COUNTY shall promptly notify the DISTRICT of the following work site conditions upon their discovery by COUNTY and the COUNTY's determination that the conditions may adversely impact the completion of the District Sewer Facilities (hereinafter called "changed conditions"). (a)Subsurface or latent physical conditions differing materially from those represented in the contract. (b)Unknown physical conditions of an unusual nature differing materially from those ordinarily encountered and generally recognized as inherent in work of the character being performed;and (c)Material differing from that represented in the Project contract which the COUNTY believes maybe hazardous waste,as defined in Section 25117 of the Health and Safety Code that is required to be removed to a Class I,Class II,or Class III disposal site in accordance with provisions of existing law. 7.DISTRICT Responsibility for Cost of Changed Conditions:The DISTRICT shall promptly investigate the conditions which appear to be changed conditions.DISTRICT shall promptly initiate any change orders or extra work necessary to address the changed conditions.DISTRICT shall be solely responsible for all increased costs to complete the District Sewer Facilities and any costs incurred by COUNTY in connection with addressing the changed conditions. 8.Project Completion,Inspection and Ownership.DISTRICT and COUNTY anticipate that the Project will be completed on or about January 2012.The Project,however,will not be deemed completed or accepted until both COUNTY and DISTRICT have accepted their respective facilities or improvements. (a)Inspection by DISTRICT.Upon receipt of notice of completion of the District Sewer Facilities,DISTRICT shall promptly inspect the facilities and shall not unreasonably condition,delay or refuse acceptance of the facilities as built. Whether DISTRICT accepts the District Sewer Facilities or not,COUNTY assumes no responsibility for the ownership or maintenance of the facilities. The facilities shall at all times be deemed to be owned and operated by DISTRICT. (b)Compliance with Specifications.COUNTY will include provisions in the Project contract that require all District Sewer Facilities furnished,constructed, and installed by COUNTY's contractor to be in strict compliance with the DISTRICT approved plans and specifications,that all materials furnished by the contractor must conform to DISTRICT's approved material list,and that any and all deviations from said plans and County Activity No.1012388 specifications must be approved by DISTRICT,in writing,prior to being incorporated into the Project. 9.Right to Enforce.DISTRICT shall be considered a third-party beneficiary of the County's construction contract with regard to the District Sewer Facilities only and shall have any rights available to a third-party beneficiary under California law to enforce the contract against the County's contractor.COUNTY shall have no obligation to enforce the contract against its contractor with regard to the District Sewer Facilities. 10.Warranty.The COUNTY's contractor shall warrant all work,including without limitation the District Sewer Facilities,for a period of no less than one year from the date of acceptance,which shall be deemed to be the later of the dates COUNTY or DISTRICT accept their respective facilities. Acceptance will be evidenced by the filing of a Notice of Completion,signed by the applicable party, with the County of San Diego Recorder. 11.Payment.COUNTY shall notify DISTRICT of the award of the Project contract.Upon receipt of notice of the award,DISTRICT shall pay to County the full amount of all items as bid, without any setoff or deduction,for the District Sewer Facilities.DISTRICT shall promptly pay the full amount of any change order or extra work for the District Sewer Facilities.Any additional sums needed to fully compensate COUNTY for the cost to relocate and construct the District Sewer Facilities shall be paid by DISTRICT.DISTRICT shall pay the full invoiced amount without any setoff or deduction within thirty (30)days of the receipt of an invoice.COUNTY will refund to DISTRICT any excess payments made by DISTRICT,together with any interest earned on DISTRICT's payment, while on deposit with the COUNTY upon the completion of the District Sewer Facilities and expiration of any warranty period for which withholdings have been made. (a)Invoices.As the Project progresses,COUNTY shall invoice the DISTRICT for costs related to the District Sewer Facilities following the receipt of an invoice from its contractor on which such costs appear.The County invoice shall include the following:(i)a copy of the contractor's invoice;(ii)identification of those costs attributable to the District Sewer Facilities;(iii)net total charge against DISTRICT Project deposits;and iv)requests for additional funds to complete the relocation and construction of the District Sewer Facilities. (b)For purposes of invoicing,costs not apportioned by the contractor on its billings between the District Sewer Facilities and other work may be apportioned in the following manner: (i)If a percentage of work attributable to the District Sewer Facilities based on the total amount billed can be reasonably determined,the costs shall be apportioned based on the percentage (e.g.If contractor states that 75%of the work billed was for the District Sewer Facilities and this appears reasonable based on work included in the contractor's invoice,DISTRICT shall pay 75%of the amount billed). County Activity No.1012388 (ii)If a percentage cannot easily be determined or the parties can't agree on a percentage of allocation,but the work billed is equally beneficial to both,the cost shall be divided equally (e.g.,the contractor digs a single trench to place both a DISTRICT sewer pipe and a COUNTY culvert and the pipes have identical trenching requirements). (iii)If no other method applies,the costs may be divided in accordance with any other method agreed to by the COUNTY and the DISTRICT. (c)DISTRICT Approval.DISTRICT shall review and approve the COUNTY invoice within (30)calendar days of its receipt.If DISTRICT determines that all relevant documents have not been submitted,DISTRICT shall inform the COUNTY of the need for additional information and specify the needed documents/information.If DISTRICT fails to approve the County invoice or request additional information within the 30-day review period,the charges on the COUNTY invoice shall be deemed approved.DISTRICT disapproval shall not alleviate DISTRICT from the obligation to promptly pay all costs incurred by COUNTY for the District Sewer Facilities.DISTRICT may pay under protest. (d)Withholding/Retention:From each payment to the Project contractor,COUNTY shall withhold a minimum of ten (10)percent of the amount of the contractor's invoice.Payment thereof shall not be made until final approval and acceptance of the facilities by both the DISTRICT and the COUNTY has been received by COUNTY. 12.Termination:Before the issuance of the Notice of Intent to Award (NOI)by COUNTY for the Project contract,DISTRICT may terminate this Agreement and exclude from the Project contract the District Sewer Facilities if the bid for construction of the facilities exceeds by five percent (5%)or more the engineer's estimate prepared by District for the facilities.DISTRICT shall provide COUNTY with a "Final Engineer's Estimate"at the time it supplies to COUNTY plans and specification for the District Sewer Facilities for inclusion in the bid package for the Project.The Final Engineer's Estimate shall be the only engineer's estimate used by DISTRICT in determining if this Agreement may be terminated.COUNTY shall send a copy of the NOI to DISTRICT at the same time that is sent to the Project contractor. 13.Records Retention.Detailed records,which form the basis of the COUNTY invoice(s),shall be retained by the County for a period of four (4)years from the date of the final statement and shall be available for verification by DISTRICT auditors.Notwithstanding the foregoing,COUNTY shall have no liability to DISTRICT for failing to maintain such records. 14.DISTRICT Indemnification.DISTRICT agrees to indemnify,defend and save COUNTY harmless from and against all demands,claims,suits,cost of defense,attorney's fees, witness fees,liabilities,or other expenses of any kind resulting from COUNTY's inclusion of the District Sewer Facilities in the Project,including but not limited to any claim for damage or damages to property or for injury or injuries to,or death of any person,or persons,including but not limited to any County Activity No.1012388 employee,statutory employee,agent or servant of COUNTY,except liability arising from sole negligence,willful act or breach of this Agreement by COUNTY,or the agents employees or independent contractors of COUNTY. 15.COUNTY Indemnification.COUNTY agrees to indemnify,defend and save DISTRICT harmless from and against all demands,claims,suits,cost of defense,attorney's fees, witness fees,liabilities,or other expenses of any kind,including but not limited to any claim for damage or damages to property of for injury or injuries to,or death of any person,or persons, including but not limited to any employee,statutory employee,agent or servant of the DISTRICT in any way arising from the Project,except to the extent relating to the District Sewer Facilities or arising from the sole negligence,willful act or breach of this Agreement by DISTRICT,or the agents, employees or independent contractors of DISTRICT. 16.Entire Agreement.This Agreement contains the entire understanding of the parties. No party is relying on any other representation or promises not contained in this Agreement.This Agreement may be changed only by a written amendment signed by both parties. 17.Notices.All notices to be given pursuant to this Agreement shall be in writing and either:i)sent by certified mail,return receipt requested,in which case notice shall be deemed delivered three (3)business days after deposit,postage prepaid in the United States mail,(ii)sent by a nationally recognized overnight courier,in which case notice shall be deemed delivered one (1) business day after deposit with this courier,or (iii)by facsimile (fax)or similar means,if a copy of the notice is also sent by United States Certified mail,in which case notice shall be deemed delivered on transmittal by facsimile (fax)or other similar means provided that a transmission report is generated reflecting the accurate transmissions of the notices,as follows: OTAYWATER DISTRICT 2554 Sweetwater Springs Blvd Spring Valley,CA 91978 Attn:Mark Watton General Manager COUNTY OF SAN DIEGO 5555 Overland Avenue,Ste 6101 San Diego,California 92123 Attn:Lawrence Hirsch Utilities Coordinator Telephone: Fax: (619)670-2222 (619)670-8920 Telephone: Fax: (858)694-2215 (858)694-2499 These addresses and telephone numbers may be changed by written notice to the other Party.Copies of notices are for informational purposes only,and a failure to give or receive copies of any notice shall not be deemed a failure to give notice. 18.Partial Invalidity.If for any reason it should be determined by a court of competent jurisdiction that part of this Agreement is invalid or unenforceable,all other provisions shall remain valid and enforceable. County Activity No.1012388 19.No Construction against Drafter.If for any reason a dispute should arise between the parties relative to the enforcement of this Agreement,no ambiguities in the Agreement shall be resolved in favor of one party and against another by reason of the fact that one party drafted the Agreement,supplied a copy of the Agreement to the other,or had the assistance of legal counsel in preparing or reviewing it. 20.Authority to Execute and Further Assurances.The parties hereby acknowledge that the party executing the Agreement on its behalf has the authority to sign the Agreement on its behalf and that by virtue of said signature the entity is bound by the terms of this Agreement.The parties further agree to work together in a cooperative manner to further the purpose of this Agreement. 21.Primary Intent.This Agreement is intended to help facilitate the DISTRICT's relocation of the District Sewer Facilities at the DISTRICT's expense and is in no way intended to shift responsibility for the cost of this work from DISTRICT to COUNTY.This Agreement shall be interpreted and applied in strict conformance with this understanding. IN WITNESS WHEREOF,the Parties hereto have read and understand this Agreement and have caused this Agreement to be executed on the date first written above. OTAY WATER DISTRICT By _ Mark Watton,General Manager Approved As To Form: District Counsel By _ COUNTY OF SAN DIEGO By _ Clerk of the Board of Supervisors County Activity No.1012388 Date _ Date _ Date _ Quality Assurance Approval Sheet Subject:Approval of a Reimbursement Agreement Between Otay Water District and the County of San Diego for the Relocation of an 8-lnch Sewer Main Project No.:S2023-001103 Document Description:Staff Report for the February 2,2011 Board Meeting Author:-~-:JJf <::.....---_ Signature {} Daniel Kay Date 1/6/(/ QA Reviewer: Manager: Printed Name JttI~ Gary Silverman Printed Name Signature Ron Ripperger Printed Name Date Date The above signatures attest that the attached document has been reviewed and to the best of their ability the signers verify that it meets the District quality standard by clearly and concisely conveying the intended information;being grammatically correct and free of formatting and typographical errors;accurately presenting calculated values and numerical references;and being internally consistent,legible and uniform in its presentation style. AGENDA ITEM 7b DIV.NO.All February 2,2011TYPEMEETING: SUBMITTED BY: APPROVED BY: (Chief) APPROVED BY: (Ass!.GM): SUBJECT: STAFF REPORT Regular ~~.....$':"MEETING DATE: James ~d1'~~ce Manager W.O.lG.F.NO: Joseph R.Bea~Chief Financial Officer German Alva~/~~ssistant General Manager,Administration and Finance ~-- Appointment of Auditor for Fiscal Year Ending June 30,2011 GENERAL MANAGER'S RECOMMENDATION: That the Board approve an engagement letter from the auditing firm of Diehl,Evans &Company,LLP,to provide audit services to the District for the fiscal year ending June 30,2011. COMMITTEE ACTION: Please see Attachment A. PURPOSE: To retain the services of Diehl,Evans &Company to serve as the District's auditors for the fiscal year ending June 30,2011. ANALYSIS: The District is required to retain the services of an independent accounting firm to perform an audit of the District's financial records each year.At the Board meeting on March 9,2009,the Board approved Diehl,Evans &Company as the District's auditors for a one-year contract,with four one-year options,with each option year subject to Board review and approval.In March 2010,the Board subsequently approved the first contract option to perform the FY-2010 audit. Staff is again recommending the appointment of Diehl,Evans & Company based on their knowledge of the District's operations and finances,their technical qualifications,and their performance as the District's auditors during the FY-2009 and FY-2010 audits.Also,at the conclusion of these audits,the Diehl,Evans staff provided significant advice and review of staff's draft Comprehensive Annual Financial Report (CAFR)prior to submission to the Government Finance Officers Association (GFOA)for award consideration. The following is a tentative planning schedule for the major activities involved in completing the FY-10 financial audit: ~Apr-11:Pre-audit (3 - 4 days). ~Aug-11:Year-end audit (4 - 5 days). ~Nov-11:Board presentation of audited financials . .~Dec-11:Completed CAFR. The audit will consist of four major components:1)standard audit services,to provide an audit opinion on the District's financial statements;2)review of the District's Investment Policy procedures;3)a State Controllers Report,required by the State of California;and 4)assistance in preparation of the District's CAFR. In response to earlier discussions with members of the Finance, Administration,and Communications Committee,the audit firm has also proposed a rotation of the senior partner assigned to the audit.The new partner will be Mr.Nitin Patel,from the firm's Irvine office.This will provide a continuing fresh perspective concerning both audit methodology and review,at no additional cost for the overall auditing services. ------::.-=-FISCAL IMPACT:~~77 / The fee for auditing services for the fiscal year ending June 30,2011,will not exceed $33,000.This maintains audit fees at the same amount as each of the last two year's fees. STRATEGIC GOAL: Required by law. LEGAL IMPACT: N°~M,ttJ#b_ General Manager Attachments: A)Committee Action Form B)Audit Engagement Letters ATTACHMENT A SUBJECT/PROJECT:Appointment of Auditor for Fiscal Year Ending June 30,2 COMMITTEE ACTION: The Finance,Administration and Communications Committee discussed this item at a meeting held on January 18,2011 and the following comments were made: •Staff indicated that the District is preparing for the annual year-end audit.The District's current audit firm is Diehl,Evans &Company,LLP (DE).The District has three (3)more option years on DE's contract.Staff has been pleased with their services and is requesting that the board approve DE to continue to provide audit services to the District for fiscal year ending June 30,2011 (FY2011). •Staff indicated that Director Bonilla had recommended that the District request that DE rotate the partner in charge of the audit to allow a fresh perspective on the audit process. •Staff introduced Mr.Nitin Patel,a Sr.Partner from DE, who has been assigned to oversee the FY2011 audit.Mr. Patel has been a partner at DE for 15 years and works out of their Irvine office.He has 25 years of experience and has been in charge of audits for special districts and local municipalities.He oversee approximately 20 audits on an annual basis and sits on the State Economy and Auditing Committee for governmental audits and is his firm's Audit Quality Control Partner for state and local governments. •It was noted that this fical year will be the third year that DE has performed the District's audit which will leave two option years on the contract.The recommendation has been that the District change audit firms every five years and,in two years,the District will be publishing an RFP to appoint a new auditing firm. •The committee inquired if there were any changes in the requirements from the State and Federal Government for this Y:\Board\CurBdPkg\F'INANCE\CommMtgAuditorSelect020211.doc year's audit compared to the last couple years.Mr.Patel indicated that the audit standards are issued by the American Institute of CPA's and they did not issue any new audit standards.This year,however,reporting of "Cash and Advancements,"which was an option in the past,will be a requirement.The State may have changes,such as,new qualifications for CPA firms allowed to do audits or they may require a new process.It is not known,at this time, if the State will issue any changes. •Staff reviewed the audit process and indicated that the document attached to staffs'report is the Audit Engagement letter which includes three separate letters: A letter for the general audit describing the audit services that DE will provide the District. The second letter reviews the agreed upon procedures for the review of the District's investment policy and indicates the eight specific procedures they will perform to assure that the policy is being followed. It was noted that this additional review of the District's policy is in reponse to the board's request. The third letter is the State Controllers Report which is a separate audit report that is essentailly an extract of the annual audit and is filed with the State of California.This filing is required by law. •The total audit services cost is $33,000 which is the same cost for the past two years. •Should the board approve engaging DE to perform the FY2011 audit: An interim audit will be performed by DE either in the last week of April or first week of May.The interim audit is the testing of the District's procedures and documentation to assure that they (DE)can rely on the District's records.This process take about three to four days typically. About the third week of August,DE would perform the full audit of FY2011. Once the audit is complete and DE has published their opinion letter,the District's audited financial statements will be presented to the board.The presentation will include the results of the audit and any audit recommendations. •In mid-December,staff plans to submit to the Government Finance Officers Association (GFOA)the District's Consolidated Annual Financial Report (CAFR)for consideration for their Excellence in Financial Reporting award.Notification of award success is forwarded to applicants around April 2011. •Staff indicated that DE works closely with staff to assure that the District's CAFR satisfies all the GFOA requirements for their award. •It was discussed that this committee (the District's Finance,Administration &Communications Committee [FA&C Committee])is the District's Audit Committee.The audit is under the board's purview and is a critical management tool for the board to ascertain how staff is conducting its financial affairs and meeting State and Federal requirements.It was noted that if the committee had other areas that they wish DE to review,the audit can include these areas.The additional review may increase the cost of the audit,but they can be included in the audit.DE can also review with committee the audit process.They will not indicate specifically what they will look at and evaluate,but can review the overall process . •Mr.Patel indicated that prior to the start of the audit (around August),he would meet with members of the FA&C Committee and receive their feedback of additional areas that the committee may like the auditors to review and would also ask members of the board if they are aware of any potential fraud. Following the discussion,the committee supported staffs' recommendation and presentation to the board as a consent item. Attachment B ~DIEHL,EVANS &.COMPANY,LLP~CERTIFIED PUBLIC ACCOUNTANTS &CONSULTANTS APARTNERSHIP INCLUDING ACCOUNTANCY CORPORATIONS 2965 ROOSEVELT STREET CARLSBAD,CALIFORNIA 92008·2389 (760)729-2343 •FAX (760)729·2234 www.diehlevans.com Mr.Joseph R.Beachem ChiefFinancial Officer Otay Water District 2554 Sweetwater Springs Boulevard Spring Valley,CA 91978-2004 Dear Mr.Beachem: January 10,2011 'PHILIPR HOLTKAMP,CPA 'THOMAS M.PERLOWSKI,CPA 'HARVEYJ,SCHROEDER,CPA KENNETIIR AMES,CPA WIlLIAMC,PENTZ,CPA MICHAELR LUDIN,CPA CRAIGW.SPRAKER,CPA NITIN P.PATEL,CPA ROBERT J.CALLANAN,CPA , APROFESSIONAL CORPORATION We are pleased to confmn our understanding of the services we are to provide Otay Water District (the District) for the year ending June 30,20 11.We will audit the fmancial statements ofOtay Water District as of and for the year ending June 30,2011.Accounting standards generally accepted in the United States ofAmerica provide for certain required supplementary information (RSI),such as management's discussion and analysis (MD&A), to supplement Otay Water District's basic fmancial statements.Such information,although not a part of the basic fmancial statements,is required by the Governmental Accounting Standards Board who considers it to be an essential part of fmancial reporting for placing the basic fmancial statements in an appropriate operational, economic,or historical context.As part of our engagement,we will apply certain limited procedures to the Otay Water District's RSI in accordance with auditing standards generally accepted in the United States ofAmerica. These limited procedures will consist of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries,the basic fmancial statements,and other knowledge we obtained during our audit ofthe basic fmancial statements. We will not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.The following RSI is required by generally accepted principles and will be subjected to certain procedures,but will not be audited: 1.Management's Discussion and Analysis 2.Schedule ofFunding Progress for PERS 3.Schedule ofFunding Progress for DPHP If a Single Audit is required,supplementary information other than RSI also would accompany Otay Water District's fmancial statements.We will subject the following supplementary information to the auditing procedures applied in our audit of the fmancial statements and certain additional procedures,including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the fmancial statements or to the fmancial statements themselves,and other additional procedures in accordance with auditing standards generally accepted in the United States of America and will provide an opinion on itin relation to the fmancial statements as a whole: 1.Schedule ofExpenditures ofFederal Awards OTHER OFFICES AT:613 W.VALLEY PARKWAY,SillTE 330 ESCONDIDO,CALIFORNIA 92025·2598 (760)741·3141 •FAX(760)741-9890 5 CORPORATE PARK,SillTE 100 IRVlNE,CALlFORNIA 92606·4906 (949)·399·0600.FAX (949)399-0610 Mr.Joseph R.Beachem Re:Otay Water District January 10,2011 Page 2 The following other information accompanying the fmancial statements will not be subjected to the auditing procedures applied in our audit ofthe fmancial statements,and for which our auditor's report will not provide an opinion or any assurance. 1.Introductory Section 2.Statistical Section Audit Objective The objective ofour audit is the expression ofan opinion as to whether your basic fmancial statements are fairly presented,in all material respects,in conformity with accounting principles generally accepted in the United States of America and to report on the fairness of the supplemental information referred to in the second paragraph when considered in relation to the basic fmancial statements taken as a whole.Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America and will include tests ofthe accounting records and other procedures we consider necessary to enable us to express such an opinion.Ifour opinion on the fmancial statements is other than unqualified,we will fully discuss the reasons with you in advance.If,for any reason,we are unable to complete the audit or are unable to express an opinion, we may decline to express an opinion or may not issue a report as a result ofthis engagement. Ifthe District is subject to a Single Audit the objective ofour audit also includes reporting on: •Internal control related to the fmancial statements and compliance with laws,regulations,and the provisions ofcontracts or grant agreements,noncompliance with which could have a material effect on the financial statements in accordance with GovernmentAuditing Standards. •Internal control related to maj or programs and an opinion (or disclaimer ofopinion)on compliance with laws,regulations,and the provisions of contracts or grant agreements that could have a direct and material effect on each major program in accordance with the Single Audit Act Amendments of 1996 and OMB Circular A-133,Audits ofStates,Local Governments,and Non-Profit Organizations. The reports on internal control and compliance will each include a statement that the report is intended solely for the information and use of management,the body or individuals charged with governance,others within the District,specific legislative or regulatory bodies,federal awarding agencies,and if applicable,pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. If the District is subject to a Single Audit,our audit will be conducted in accordance with auditing standards generally accepted in the United States of America;the standards for fmancial audits contained in Government Auditing Standards,issued by the Comptroller General ofthe United States;the Single Audit Act Amendments of 1996;and the provisions of OMB Circular A-133,and will include tests of accounting records,a determination ofmajor program(s)in accordance with OMB Circular A-133,and other procedures we consider necessary to enable us to express such opinions and to render the required reports.If our opinions on the fmancial statements or the Single Audit compliance opinions are other than unqualified,we will fully discuss the reasons with you in advance.If,for any reason,we are unable to complete the audit or are unable to form or have not formed opinions,we may decline to express opinions or to issue a report as a result ofthis engagement. Mr.Joseph R.Beachem Re:Otay Water District Management Responsibilities January 10,2011 Page 3 Management is responsible for the basic fmancial statements and all accompanying information as well as all representations contained therein.lfthe District is subject to a Single Audit,management is also responsible for identifying government award programs and understanding and complying with the compliance requirements, and for preparation of the schedule of expenditures of federal awards in accordance with the requirements of OMB Circular A-133.As part of the audit,we will assist with preparation ofyour fmancial statements and related notes.You are responsible for making all management decisions and performing all management functions relating to the fmancial statements and related notes and for accepting full responsibility for such decisions.You will be required to acknowledge in the management representation letter our assistance with preparation of the financial statements and that you have reviewed and approved the fmancial statements and related notes prior to their issuance and have accepted responsibility for them.Further,you are required to designate an individual with suitable skill,knowledge,or experience to oversee our assistance with the preparation of your fmancial statements and related notes and any nonaudit services we provide and for evaluating the adequacy and results ofthose services and accepting responsibility for them. Management is responsible for establishing and maintaining effective internal controls,including internal controls over compliance,and for evaluating and monitoring ongoing activities,to help ensure that appropriate goals and objectives are met and that there is reasonable assurance that government programs are administered in compliance with compliance requirements.You are also responsible for the selection and application of accounting principles;for the fair presentation in the fmancial statements ofthe fmancial position of the Otay Water District and the respective changes in financial position and,where applicable,cash flows in conformity with u.s.generally accepted accounting principles;and for compliance with applicable laws and regulations and the provisions of contracts and grant agreements. Management is also responsible for making all fmancial records and related information available to us and for ensuring that management and fmancial information is reliable and properly recorded.Your responsibilities also include identifying significant vendor relationships in which the vendor has responsibility for program compliance and for the accuracy and completeness of that information.Your responsibilities include adjusting the fmancial statements to correct material misstatements and confirming to us in the representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial,both individually and in the aggregate,to the financial statements taken as a whole. You are responsible for the design and implementation ofprograms and controls to prevent and detect fraud,and for informing us about all known or suspected fraud or illegal acts affecting the government involving (1)management,(2)employees who have significant roles in internal control,and (3)others where the fraud or illegal acts could have a material effect on the financial statements.Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting the government received in communications from employees,former employees,grantors,regulators,or others.In addition,you are responsible for identifying and ensuring that the District complies with applicable laws,regulations,contracts, agreements,and grants.Additionally,is a Single Audit is required,as required by OMB Circular A-133,it is management's responsibility to follow up and take corrective action on reported audit fmdings and to prepare a summary schedule ofprior audit fmdings and a corrective action plan. Management is responsible for establishing and maintaining a process for tracking the status of audit findings and recommendations.Management is also responsible for identifying for us previous fmancial audits, attestation engagements,performance audits,or other studies related to the objectives discussed in the Audit Objectives section ofthis letter.This responsibility includes relaying to us corrective actions taken to address significant fmdings and recommendations resulting from those audits,attestation engagements,performance audits,or studies.You are also responsible for providing management's views on our current fmdings, conclusions,and recommendations,as well as your planned corrective actions,for the report,and for the timing and format for providing that information. Mr.Joseph R.Beachem Re:Otay Water District Audit Procedures -General January 10,2011 Page 4 An audit includes examining,on a test basis,evidence supporting the amounts and disclosures in the fmandal statements;therefore,our audit will involve judgment about the number oftransactions to be examined and the areas to be tested.We will plan and perform the audit to obtain reasonable rather than absolute assurance about whether the fmancial statements are free of material misstatement,whether from (1)errors,(2)fraudulent fmancial reporting,(3)misappropriation ofassets,or (4)violations oflaws or governmental regulations that are attributable to the District or to acts by management or employees acting on behalf ofthe District.Because the determination of abuse is subjective,Government Auditing Standards do not expect auditors to provide reasonable assurance ofdetecting abuse. Because an audit is designed to provide reasonable,but not absolute assurance and because we will not perform a detailed examination ofall transactions,there is a risk that material misstatements or noncompliance may exist and not be detected by us.In addition,an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the fmancial statements or major programs.However,we will inform you of any material errors and any fraudulent fmancial reporting or misappropriation of assets that come to our attention.We will also inform you of any violations of laws or governmental regulations that come to our attention,unless clearly inconsequential,and of any material abuse that comes to our attention.We will include such matters in the reports required for a Single Audit (ifrequired). Our responsibility as auditors is limited to the period covered by our audit and does not extend to any later periods for which we are not engaged as auditors. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests ofthe physical existence ofinventories,and direct confirmation ofreceivables and certain other assets and liabilities by correspondence with selected individuals,funding sources,creditors,and fmancial institutions.We will request written representations from your attorneys as part of the engagement,and they may bill you for responding to this inquiry.At the conclusion of our audit,we will require certain written representations from you about the fmandal statements and related matters. Audit Procedures -Internal Controls Our audit will include obtaining an understanding ofthe District and its environment,including internal control, sufficient to assess the risks of material misstatement of the fmancial statements and to design the nature, timing,and extent of further audit procedures.Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the fmancial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements.Our tests,if performed, will be less in scope than would be necessary to render an opinion on internal control and,accordingly,no opinion will be expressed in our report oninternal control issued pursuant to Government Auditing Standards. If a Single Audit is required,as required by OMB Circular A-B3,we will perform tests of controls over compliance to evaluate the effectiveness of the design and operation of controls that we consider relevant to preventing or detecting material noncompliance with compliance requirements applicable to each major federal award program.However,our tests will be less in scope than would be necessary to render an opinion on those controls and,accordingly,no opinion will be expressed in our report on internal control issued pursuant to OMB Circular A-B3. Mr.Joseph R.Beachem Re:Otay Water District Audit Procedures -Internal Controls (Continued) January 10,2011 Page 5 An audit is not designed to provide assurance on internal control or to identify significant deficiencies. However,during the audit,we will communicate to management and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards,Government AuditingStandards,and OMB Circular A-133. Audit Procedures -Compliance As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the District's compliance with applicable laws and regulations and the provisions of contracts and agreements,including grant agreements.However,the objective ofthose procedures will not be to provide an opinion on overall compliance and we will not express such an opinion in our report on compliance issued pursuant to Government Auditing Standards. OMB Circular A-133 requires that we also plan and perform the audit to obtain reasonable assurance about whether the auditee has complied with applicable laws and regulations and the provisions ofcontracts and grant agreements applicable to major programs.Our procedures will consist of tests of transactions and other applicable procedures described in the OMB Circular A-133 Compliance Supplement and related addenda for the types ofcompliance requirements that could have a direct and material effect on each ofthe District's major programs.The purpose of these procedures will be to express an opinion on the District's compliance with requirements applicable to each of its major programs in our report on compliance issued pursuant to OMB Circular A-B3. Audit Administration Fees,and Other Noted below is a listing ofwork required by District staffto assist in the audit. 1.Preparation oftrial balances for all funds,after posting ofall year endjournal entries. 2.Preparation of schedules supporting all major balance sheet accounts,and selected revenue and expense accounts. 3.Typing ofall confmnation requests. 4.Pulling and refiling ofall supporting documents required for audit verification. 5.Preparation ofthe Management's Discussion and Analysis. The workpapers for this engagement are the property of DieW,Evans and Company,LLP and constitute confidential information.However,we may be requested to make certain workpapers available to grantor agencies pursuant to authority given to it by law or regulation.Ifrequested,access to such workpapers will be provided under the supervision of our personnel.Furthermore,upon request,we may provide photocopies of selected workpapers to the grantor agencies.The grantor agencies may intend,or decide,to distribute the photocopies or information contained therein to others,including other governmental agencies. In accordance with our fmn's current record retention policy,all ofyour original records will be returned to you at the conclusion ofthis engagement.Our accounting workpaper files will be kept for a period of seven years. All other files will be kept for as long as you retain us as your accountants.However,upon termination of our service,all records will be destroyed after a period of seven years.Physical deterioration or catastrophic events may further shorten the life ofthese records.The working papers and files ofour firm are not a substitute for your original records. Mr.Joseph R.Beachem Re:Otay Water District Audit Administration Fees,and Other (Continued) January 10,2011 Page 6 We expect to begin our audit on approximately April 25,2011 and to issue our reports no later than October 31,2011.Nitin Patel is the engagement partner and is responsible for supervising the engagement and signing the report or authorizing another individual to sign them.Our fee for these services will be at our standard hourly rates plus out-of-pocket costs (such as report reproduction,word processing,postage,travel, copies,telephone,etc.)except that we agree that our gross fee,including expenses,for the year ending June 30,2011 will not exceed $33,000.Our standard hourly rates vary according to the degree ofresponsibility involved and the experience level ofthe personnel assigned to your audit.Our invoices for these fees will be rendered each month as work progresses and are payable on presentation.In accordance with our firm policies, work may be suspended ifyour account becomes 60 days or more overdue and may not be resumed until your account is paid in full.Ifwe elect to terminate our services for nonpayment,our engagement will be deemed to have been completed upon written notification oftermination,even ifwe have not completed our report.You will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket costs through the date of termination.The above fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit.If significant additional time is necessary,we will discuss it with you and arrive at a new fee estimate before we incur the additional costs. Government Auditing Standards require that we provide you with a copy ofour most recent external peer review report and any letter of comment,and any subsequent peer review reports and letters of comment received during the period ofthe contract.Our 2010 peer review accompanies this letter. We appreciate the opportunity to be of service to the Otay Water District and believe this letter accurately summarizes the significant terms ofour engagement.Ifyou have any questions,please let us know.Ifyou agree with the terms ofour engagement as described in this letter,please sign the enclosed copy and return it to us. Very truly yours, DIEHL,EVANS &COMPANY,LLP RESPONSE: By:(Vc::::-8 ~ Nitin P.Patel,CPA Engagement Partner This letter correctly sets forth the understanding ofthe Otay Water District By:;--"'9-'----------:7"''-------~----- Date:_----<./_-_....;./....;:."'--_-_'.....:..;;Lf]__/..L/. HEIDENREICH &HEIDENREICH,CPAs,PLLC 10201 S.515'Street #170 Phoenix,~85044 (480)704-6301 fax 785-4619 System Review Report January28,2009 To the Owners of Diehl,Evans &Company,LLP and the Peer Review Committee of the CA Society of CPAs We have reviewed the system of quality control for the accounting and auditing practice of Diehl, Evans &Company,LLP (the firm)in effect for the year ended September 30,2008.Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants.The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformitywith applicable professional standards in all material respects.Our responsibility is to express an opinion on the design of the system of quality control and the firm's compliance therewith based on our review.The nature,objectives,scope,limitations of,and the procedures performed ina System Review are described in the standards at www.aicpa.org/prsummary. As required by the standards,engagements selected for review included engagements performed under·the Government Auditing Standards and audits of employee benefit plans. In our opinion,the system of quality control for the accounting and auditing practice of Diehl, Evans &Company,LLP in effect for the year ended September 30,2008,has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects.Firms can receive a rating of pass,pass with deficiency(ies)or fail.Diehl,Evans &Company,LLP has received a peer review rating of pass. Heidenreich &Heidenreich,CPAs,PLLC r::;,DIEHL,EVANS &COMPANY,LLP~CERTIFIED PUBLIC ACCOUNTANTS &:CONSULTANTS APARTNERSHIPINCLUDINGACCOUNTANCY CORPORATIONS 2965 ROOSEVELT STREET CARLSBAD,CALIFORNIA 92008-2389 (760)729-2343 •FAX (760)729-2234 www.diehlevans.com Mr.Joseph R.Beachem ChiefFinancial Officer Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley,CA 91978-2004 Dear Mr.Beachem: January 10,2011 'PHILIPH.HOLTKAMP,CPA 'THOMAS M PERLOWSKl,CPA 'HARVEYJ.SCHROEDER,CPA KENNETH R.AMES,CPA WIILIAMC,PENTZ,CPA MICHAELR.LUDIN,CPA CRAIGW.SPRAKER,CPA NITINP.PATEL,CPA ROBERTJ,CALLANAN,CPA , A PROPESSIONALCORPORATION We are pleased to confirm our understanding ofthe nature and limitations ofthe services we are to provide for the Otay Water District. We will apply the agreed-upon procedures which the District's senior management has specified, listed in Attachment A solely to assist the District's senior management in evaluating the investments of the District for the fiscal year ending June 30,2011.Our engagement to apply agreed-upon procedures will be conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants.The sufficiency ofthe procedures is solely the responsibility ofthose parties specified in the report.Consequently,we make no representation regarding the sufficiency of the procedures described in the attached schedule either for the purpose for which this report has been requested or for any other purpose.If,for any reason,we are unable to complete the procedures,we will describe any restrictions on the performance ofthe procedures in our report,or will not issue a report as a result ofthis engagement. Because the agreed-upon procedures listed in the attached schedule do not constitute an examination,we will not express an opinion on the evaluation of the investments of the District. In addition,we have no obligation to perform any procedures beyond those listed in Attachment A. We will submit a report listing the procedures performed and our findings.This report is intended solely for the use of District senior management,and should not be used by anyone other than these specified parties.Our report will contain a paragraph indicating that had we performed additional procedures,other matters might have come to our attention that would have been reported to you. You are responsible for the presentation of the evaluation of the investments of the District;and for selecting the criteria and determining that such criteria are appropriate for your purposes.You are also responsible for making all management decisions and performing all management functions;and for evaluating the adequacy and results of those services and accepting responsibility for them. OrnEROFFICESAT:613 W.VALLEYPARKWAY.SUITE 330 ESCONDIDO,CALIFORNIA 92025-2598 (760)741-3141.FAX (760)741-9890 5 CORPORATE PARK,SUITE 100 IRVINE.CALIFORNIA 92606·5165 (949)-399-0600.FAX (949)399-0610 Mr.Joseph R.Beachem Otay Water District January 10,2011 Page 2 Nitin P.Patel,CPA is the engagement partner and is responsible for supervising the engagement and signing the report or authorizing another individual to sign it. We plan to begin our procedures on approximately September 1,2011 and,unless unforeseeable problems are encountered,the engagement should be completed by September 30,2011.At the conclusion of our engagement,we will require a representation letter from management that, among other things,w'll confirm management's responsibility for the presentation of the evaluation ofthe investment ofthe District. Our fee to prepare the report is included in the $33,000 maximum fee quoted in the engagement letter to conduct the June 30,2011 financial audit of the District dated January 10,2011.If significant additional time is necessary,we will discuss it with you and arrive at a new fee estimate before we incur the additional costs,Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. We appreciate the opportunity to assist you and believe this letter accurately summarizes the significant terms of our engagement.If you have any questions,please let us know.If you agree with the terms of our engagement as described in this letter,please sign the enclosed copy and return it to us.Ifthe need for additional procedures arises,our agreement with you will need to be revised.It is customary for us to enumerate these revisions in an addendum to this letter.If additional specified parties of the report are added,we will require that they acknowledge in writing their responsibility for the sufficiency ofprocedures. Very truly yours, DIEHL,EVANS &COMPANY,LLP By N~f·e~ Nitin P.Patel CPA Engagement Partner RESPONSE: This letter correctly sets forth the understanding ofthe Otay Water District. Date __..J..I__L..JIC;...../:::..-_~~=-..!...I...LI _ Mr.Joseph R.Beachem Otay Water District Attachment A Agreed Upon Procedures January 10,2011 Page 3 1.Obtain a copy ofthe District's investment policy and detennine that it is in effect for the time period under review. 2.Select 4 investments held at year end and detennine if they are allowable investments under the District's Investment Policy. 3.For the four investments selected in #2 above,detennine ifthey are held by a third party custodian designated bythe District. 4.ConfIrm the par or original investment amount and market value for the four investments selected above with the custodian or issuer ofthe investments. 5.Select two investment earnings transactions that took place during the year and recompute the earnings to detennme ifthe proper amount was received. 6.Trace amounts received for transactions selected at #5 above into the District's bank accounts. 7.Select five investment transactions (buy,sell,trade or maturity)occurring during the year under review and detennine that the transactions are pennissible under the District's investment policy. 8.Review the supporting documents for the fIve investments selected at #7 above to determine ifthe transactions were appropriately recorded inthe District's general ledger. ~DIEHL,EVANS &.COMPANY,LLP~CERTIFIED PUBLIC ACCOUNTANTS &:CONSULTANTS APARTNERSHIP INCLUDING ACCOUNTANCY CORPORATIONS 2965 ROOSEVELT STREET CARLSBAD,CALIFORNIA 92008·2389 (760)729-2343 •FAX (760)729-2234 www.diehlevans.com Mr.Joseph R.Beachem ChiefFinancial Officer Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley,CA 91978-2004 Dear Mr.Beachem: January 10,2011 'PHILIPH.HOLTKAMP.CPA 'TiiOMASM.PERLOWSKJ,CPA 'HARVEYJ.SCHROEDER,CPA KENNETIlR AMES,CPA WJLLIAM C.PENTZ,CPA MJCHARLR LUDJN,CPA CRAIGW.SPRAKER,CPA NITINP.PATEL,CPA ROBERTJ.CALLANAN.CPA ..APROFESSIONALCORPORATION This letter is to confIrm our understanding of the tenns and objectives of our engagement and the nature and limitations ofthe services that we will provide. We will compile and provide the Special Districts Financial Transaction Report and Supplement to the Annual Report ofthe Otay Water District (District)for the year ending June 30,2011 to be included in the form prescribed by the California State Controller's Office.Our report is presently expected to read: "We have compiled the accompanying Annual Report of Financial Transactions of Otay Water District for the year ending June 30,2011,included in the accompanying prescribed form and as filed electronically with the California State Controller's Office,in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. Our compilation was limited to presenting in the fonn prescribed by the California State Controller infonnation that is the representation of management.We have not audited or reviewed the fInancial statements referred to above and,accordingly,do not express an opinion or any other fonn ofassurance on them. These fmancial statements are presented in accordance with the requirements of the State Controller of California,which differ from generally accepted accounting principles.These financial statements omit substantially all of the disclosures required by generally accepted accounting principles.If the omitted disclosures were included in the financial statements, they might influence the user's conclusions about the District's fInancial position and results ofoperations.Accordingly,these financial statements are not designed for those who are not infonned about such matters." OTHER OFFICES AT:613 W.VALLEY PARKWAY,SUITE 330 ESCONDIDO,CALIFORNIA92025-2598 (760)741-3141.FAX (760)741-9890 SCORPORATE PARK,SUITE 100 IRVINE,CALIFORNIA 92606-4906 (949)-399-0600 •FAX(949)399-0610 Mr.Joseph R.Beachem Otay Water District January 10,2011 Page 2 Our fee to prepare the report is included in the $33,000 maximum fee quoted in the engagement letter to conduct the June 30,2011 financial audit of the District dated January 10,2011.This fee contemplates that conditions satisfactory to the normal progress and completion of the Report will be encountered and that the District personnel will furnish assistance in connection with the Report preparation. We appreciate the opportunity to be of service to the Otay Water District and believe this letter accurately summarizes the significant terms of our engagement.If you have any questions,please let us know.If you agree with the terms of our engagement as described in this letter,please sign the enclosed copy and return it to us. Very truly yours, DIEHL,EVANS &COMPANY,LLP By f'-/~;=>f ~e-t:::L- Nitin P.Patel,CPA Engagement Partner RESPONSE: This letter correctly sets forth the understanding ofthe Otay Water District. ~ By -~,...r<=---;?"~--:::>""'=---------- Date / - /0 ~;2..0/( AGENDA ITEM 7c TYPE MEETING:Regular Boar SUBMITTED BY:Geoff Steve Chief Info~ I STAFF REPORT MEETING DATE: W.O.lG.F.NO: February 2,2011 DIV.NO. APPROVED BY: (Asst.GM): SUBJECT: German }'tJv~ez Ass~neral Manager,Finance and Administration PURCHASING DIGITAL COLOR ORTHOPHOTOGRAPHY FOR GIS services to update the the District's service GENERAL MANAGER'S RECOMMENDATION: That the Board of Directors authorize the General Manager to negotiate and enter into an agreement with DMI Digital Mapping Inc. in an amount not to exceed $68,000 for orthophotography services. COMMITTEE ACTION: See Attachment ~A". PURPOSE: To authorize the purchase of orthophotography District's land-based images in GIS for territory. ANALYSIS: The District regularly updates its orthophotgraphic imagery in its GIS system to provide accurate information for use in planning, preliminary design,assessment of easements and hazards,and in general to support daily operations.Five years ago,the District was able to work with a consortium of regional utilities and cities to purchase imagery to a 6"pixel level accuracy.Within the last five years the new standard is now a 4"pixel,which appears to be a diminutive difference but it is important in identifying detailed items like valves or hydrants.During the same period many physical changes have occurred to the parcels in the District's boundary like new buildings,roads,and other infrastructure.Consequently,the time has come again to participate with a group of local agencies, headed by the Sweetwater Authority,to purchase updated ortho images. 2011 budget),have provide required IT, all Operations,and Engineering (as part of the agreed that the updates were necessary to services.The total cost for the updates for Otay is $68,000.This comprises 53%of the total area and cost of the larger contract.Otay is one of at least four agencies that are participating in this group purchase.Aside from Sweetwater,the other organizations are National City and the City of Chula Vista.Sweetwater,as the lead agency, negotiated the combined agreement which included a thorough analysis and competitive assessment of orthophotography vendors.The actual imagery will be flown in within the next few months and following post processing will be available to the District by July 1st .GIS staff will review all deliverables for quality and accuracy. ~---:z.;::-~:?j/~FISCAL IMPACT:~ This project is budgeted.The total expenditures requested are for a not-to-exceed amount of $68,000 with funds from the Capital Improvement Program CIP 2470.The approved FY 2011 budget is $408,000 for CI P P2 470 .Expenditures to date are $161,600.This proj ect will leave a balance of $178,840.The Project Manager anticipates,based on financial analysis,that the budget will be sufficient to support this project.Finance has determined that 40%of the funding for the project is available from the "Expansion Fund"and 60%from the "Replacement Fund". STRATEGIC GOAL: This proj ect will achieve in total or part the following goals and objectives in the 2011 Strategic Plan. 3.2.2.3. 3.3.3.5 LEGAL IMPACT: None. Enhance the District's data management,data update process,and data architecture including enterprise standard data.Update process for ensuring GIS data is accurate. Develop optimized field work processing using integrated technology /~'W~,General Manag~ SUBJECT/PROJECT: COMMITTEE ACTION: ATTACHMENT A PURCHASING DIGITAL COLOR ORTHOPHOTOGRAPHY FOR GIS The Finance,Administration and Communications Committee discussed this item at a meeting held on January 18,2011 and the following comments were made: •Staff is requesting that the board authorize an agreement with DMI Digital Mapping,Inc.to provide orthophotography services. •It was indicated that the District partners with other regional agencies to update its orthophotography periodically to provide accurate parcel information.It was indicated that it has been five years since the last update. •The regional orthophotography project partners will include: Otay Water District Sweetwater Authority City of National City City of Chula Vista •It was indicated that the Port Authority may also partner in this project,but their participation has not yet been finalized.It was noted that whether the Port Authority participates or not,it would not affect the details of the proposed contract with DMI Digital Mapping,Inc. •Staff indicated that the contract was competitively bid by a consortium of utilities which was lead by George Silva of Sweetwater Authority. •It was discussed that the ortho images will be a higher level of resolution than past images (from 6"to 4"pixel level of accuracy).The updated ortho photography will show changes to the parcels within the District's boundaries,such as,new roads,new buildings,new infrastructure,structures that may have been built recently in a District easement,etc.that will be helpful for use in planning and in support of daily operations. •The ortho images may also be utilized for preliminary design and engineering of new infrastructure as the photos will include topography for all parcels within the District's service area. •It is expected that the photos will be taken in the next several months and the photo data will be available to the District around July 1,2011. •It was noted that the photos will be placed in the District's GIS system. •The committee inquired if Helix WD or Padre Dam MWD had participated in the last regional orthophotography update. Staff clarified that neither Helix nor Padre had allocated funding and neither agency is facing much new development. Also in the case of Helix,their GIS system is different and is not as "land based"as Otay's or Sweetwater's GIS systems. •The committee discussed that Homeland Security is investing federal funds into updating the orthophotography for the San Diego region and SANDAG has been identified as the lead agency for the project.It was inquired if the District is participating in this regional effort and if so,was there any opportunity to receive funding from the Homeland Security proj ect for this effort.Staff did investigate this and while the Homeland Security project did participate in the initial discussions,their need for detail was not as high as agencies that maintain specific infrastructure.Consequently the 4"pixel was not cost effective for their needs and they withdrew from the consortium. Following the discussion,the committee supported staffs' recommendation and presentation to the board as a consent item. AGENDA ITEM 8a STAFF REPORT TYPE MEETING:Regular Board SUBMITIED BY:Bob Kennedy ~ Associate Civil Engineer MEETING DATE:February 2,2011 W.O.lG.F.No.:DO 7 38-DIV.NO.2 090062 APPROVED BY: (Chief) APPROVED BY: (Asst.GM) SUBJECT: Ron Ripperger ~ Engineering Manager Rod Posada ~~~ Chief,Engineering Manny Magan~~ Assistant General ~~nager,Engineering and Operations Approval of Water Supply Assessment Report (December 2010) for the San Diego-Tijuana Cross Border Facility GENERAL MANAGER'S RECOMMENDATION: That the Otay Water District (District)Board of Directors (Board)approve the Water Supply Assessment Report (WSA Report) dated December 2010 for the San Diego-Tijuana Cross Border Facility (Cross Border Project),as required by Senate Bill 610 (see Exhibit A for Project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board approval of the December 2010 WSA Report for the Cross Border Project,as required by Senate Bill 610 (SB 610). ANALYSIS: SB 610 requires a city or county to evaluate whether total water supplies will meet the projected water demand for certain "projects"that are otherwise subject to the requirement of the California Environmental Quality Act (CEQA).SB 610 provides its own definition of "project"in Water Code Section 10912. The City of San Diego (City)submitted a request for a WSA to the District pursuant to SB 610.SB 610 requires that,upon request of the city or county,a water purveyor,such as the District,prepare a water supply assessment to be included in the CEQA documentation. The requirements of SB 610 are addressed by the WSA Report for the Cross Border Project.Prior to transmittal to the City,the WSA Report must be approved by the District Board.Additional information of the intent of SB 610 is provided in Exhibit Band the Cross Border Project WSA Report is attached as Exhibit C. For the Cross Border Project,the City is the responsible land use agency that requested the SB 610 water supply assessment from the District,as the water purveyor for the proposed Cross Border Project.The request for the WSA Report,in compliance with SB 610 requirements,was made by the City because the Cross Border Project meets or exceeds one or both of the following SB 610 criteria: • A proposed industrial,manufacturing or processing plant, or industrial park planned to house more than 1,000 persons,occupying more than 40 acres of land,or having more than 650,000 square feet of area. • 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. The Cross Border Project is a 63.8 acre development and is planned to include approximately 78,500 square feet of retail space,two ISO-room hotels,a cargo facility,a parking garage, industrial lots,and a cross border terminal facility providing secure air-passenger access to the passenger terminals of the General Abelardo L.Rodriguez International Airport. The District,as the proposed water purveyor for the Cross Border Project,does not have to comply with the requirements of Senate Bill 221 (SB 221)because the Project is an industrial subdivision and SB 221 applies to residential subdivisions. Pursuant to SB 610,the WSA Report incorporates by reference the current Urban Water Management Plans and other water resources planning documents of the District,the San Diego County Water Authority (Water Authority),and the Metropolitan Water District of Southern California (Metropolitan).The District prepared 2 the WSA Report in consultation with PBS&J and the Water Authority,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 and in single and multiple dry years to meet the projected demand of the Cross Border Project and other planned development projects within the District. The expected demand for the Cross Border Project is 95 acre-feet per year.As originally included in the District's Water Resources Master Plan,dated October 2008,and approved by the District on February 3,2010,the projected demand for this property was 60 acre-feet per year.Therefore,there is an increase of 35 acre-feet per year due to a proposed increase in development intensity and the future International Business and Trade (IBT)land use proposed for the remaining undeveloped lots.The City is proposing the IBT land use zone for this portion of Otay Mesa in the Otay Mesa Community Plan Update. The projected recycled water demand for the proposed Cross Border Project is 11 acre-feet per year,representing about 11 percent of the total water demand. Metropolitan'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.Metropolitan's 2010 update to the IRP (2010 IRP Update)includes a water supply planning buffer to mitigate the risk 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 the establishment of the planning buffer,Metropolitan periodically evaluates supply development to ensure that the region is not under-or over- developing supplies.If managed properly,the planning buffer, along with other alternative supplies,will help ensure that the Southern California region,including San Diego County,will have adequate supplies to meet future demands. The County Water Authority Act,Section 5,Subdivision 11, states 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." 3 The intent of the SB 610 legislation is that the land use agencies and the water agencies coordinate their efforts in planning for new development and thus plan for sufficient water supplies to meet the needs. As per the requirements of SB 610,if the water supply assessment finds that the supply is sufficient,then the governing body of the water supplier (District)must approve the water supply assessment and deliver it to the lead agency (City) within 90 days.The City's WSA request letter dated December 10,2010 was received by the District December 14,2010. Pursuant to SB 610,if the water supply assessment finds overall supplies are insufficient,the water supplier shall provide to the lead agency "its plans for acquiring additional water supplies,setting forth measures that are being undertaken to acquire and develop those water supplies,"and the water supplier governing body must approve the assessment and deliver it to the lead agency within 90 days.If the water supplier does conclude that additional water supplies are required,the water supplier should indicate the status or stage of development of the actions identified in the plans it provides. 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. Once either of the two actions listed above are accomplished, the District's SB 610 water supply assessment responsibilities are complete. SB 610 provides that if the SB 610 water supply assessment is not received by the lead agency from the water supplier within the prescribed 90 day period,and any requested time extension, the lead agency may seek legal relief,such as writ of mandamus. The City's request letter dated December 10,2010 was received by the District December 14,2010 so the 90 day deadline for the District to provide the WSA Report to the City is March 13, 2011. Water supply agencies throughout California continue to face climatological,environmental,legal,and other challenges that impact water source supply conditions,such as the court ruling regarding the Sacramento-San Joaquin Delta issues.Challenges such as these are always present.The regional water supply agencies,the Water Authority,Metropolitan,and the District nevertheless fully intend to have sufficient,reliable supplies to serve the Cross Border Project. 4 With the initiation of the South Bay Water Reclamation Plant (SBWRP)recycled water supply on May 18,2007 the District has reduced the annual take of potable water from the Water Authority,once used to supplement the recycled water supply shortfall,in excess of 3,200 acre-feet per year.The Cross Border Project estimate of an additional 35 acre-feet per year potable water demand is about 1 percent of the potable water saved with the SBWRP supply start up. FISCAL IMPACT:~ The District has Been reimbursed $15,900 for all costs associated with the preparation of the Cross Border Project WSA Report.The reimbursement was accomplished via a $18,800 deposit the Project proponents placed with the District. STRATEGIC GOAL: The preparation and approval of the Cross Border Project WSA Report supports the District's Mission statement,"To provide the best quality of 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,in planning for infrastructure and supply to meet current and future potable water demands. LEGAL IMPACT: Approval of a WSA Report for the Cross Border Project in form and content satisfactory to the Board of Directors would allow the District to comply with the requirements of Senate Bill 610. P:\~'IORKING\~'10D0738-Tijuana Cro::.:;,ing\Staff Report\BD 02-02-11,San Diego-Tijuana Cross Border facility (BK-RRI.doc BK/RR:jf Attachments:Attachment A -Committee Actions Exhibit A - Exhibit B Exhibit C Project Location Map Explanation of the Intent of SB Cross Border Project WSA Report 5 610 ATTACHMENT A SUBJECT/PROJECT: D0738-090062 Approval of Water Supply Assessment Report (December 2010) for the San Diego-Tijuana Cross Border Facility COMMITTEE ACTION: The Engineering,Operations,and Water Resources Committee reviewed this item at a Committee Meeting held on January 18, 2011 and the following comments were made: •Staff is requesting that the Otay Water District (District) Board of Directors (Board)approve the December 2010 Water Supply Assessment Report for the San Diego-Tijuana Cross Border Facility (Cross Border Project),as required by Senate Bill 610. •Staff indicated that on December 14,2010,the District received a request from the City of San Diego to prepare the WSA Report for the Cross Border Project that is part of the Otay Mesa Community Plan Update.It was noted that SB 610 requires that the District honor the City's request, and that board approval for the submittal of the WSA Report to the City of San Diego is required.An exhibit was provided to the Committee that showed the location of the project site. •Staff stated that the Cross Border Project is a 63.8-acre industrial subdivision development that includes the following: o 78,500 square-feet of retail space o Two ISO-room hotels o A cargo facility o A parking garage o Industrial lots o A cross border terminal facility that will provide,an estimated 4.5 million people annually,secure air- passenger access to the passenger terminals of the General Abelardo L.Rodriguez International Airport •Staff indicated that the Cross Border Project's expected demand is 95 acre-feet per year for potable water,and 11 acre-feet per year for recycled water. •It was indicated that staff consulted with PBS&J and the Water Authority to prepare the December 2010 WSA Report. • A PowerPoint presentation was provided to the Committee that included the following: o Background of Senate Bill 610,which became effective on January 1,2002,and its intent and how it relates to the WSA Report o Land use plan and description for the Cross Border Project o Potable demand estimates for the Cross Border Project o City of San Diego's Otay Mesa Community Plan Update Modified Scenario 3B,and SANDAG's 2050 Regional Growth Forecast o Otay Water District's,San Diego County Water Authority's,and Metropolitan Water District's Urban Water Management Plan •Staff indicated that the City's Otay Mesa Community Plan Update Modified Scenario 3B was forwarded to SANDAG who updated its Series 12 and was made available to the Metropolitan Water District for their use in updating their Integrated Resource Plan and their Urban Water Management Plan,and to CWA to update their Urban Water Management Plan.Staff noted that the information will also be used in the District's Urban Water Management Plan scheduled to be completed by the end of this Fiscal Year. •Staff indicated that the WSA Report states the following: "The regional and local water supply agencies acknowledge the challenges of supply 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." •Staff indicated that the status of the current water supply situation is documented in the WSA 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 statute in that Land use agencies and water suppliers have demonstrated strong linkage.The Cross Border Project WSA Report clearly documents the current water supply situation.Staff believes that based on existing documentation,the WSA 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. •It was noted that the Cross Border Project WSA Report includes (3)three other Otay Water District Planned Local Water Supply Projects: o Rancho Del Rey Groundwater Well (500-600 AFY) o Rosarito Ocean Desalination Project (24,000-50,000 AFY) o Otay Mesa Lot 7 Groundwater Well (300-400 AFY) • A slide was presented that showed the Projected Balance of Potable Water Supplies and Demands in Normal Year Conditions (AFY).Staff indicated that the projection is based on collective data and the Otay Water District's 2005 Urban Water Management which is updated every 5 years with projected water demands.It was noted that the Projected Demands shown on the slide was recently updated and will be replaced with updated information at the end of the fiscal year when the District's 2010 Urban Management Plan is completed. •The Committee commended staff for preparing the Cross Border Project WSA Report as it can be used as a tool to help keep development in perspective . •The Committee inquired if the projected water supply demands,documented in the District's WSA Reports for future developments,can be considered as reserves/credits if the water supply is not used.Staff stated that the projected water supplies in the District's WSA Reports are not dedicated to or owned by the District and is only an estimated figure of the amount of water that is needed for future developments.Staff further indicated that the Water Supply Assessment Report is not intended to reserve or guarantee water supply for future developments.Its intention is to determine if there is sufficient water supplies for future developments and that those supplies will be available over the next 20 years. •The Committee inquired if unused water purchased by the District,from MET,CWA,and the City of San Diego,can be considered as a reserve or credit.Staff stated that the District does not receive any credit or offset for unused water it purchases and indicated that it is reported as a reduction in the District's water sales. Following the discussion,the Committee supported staffs' recommendation and presentation to the full board as an action item. ~.----ECT ALE:1....600· U.S.A. MEXlCO ( JN667.0 w>ii:1---j----~I--_t Q (Ju::r---l-----i:i::1oI----I~I-_-I ~,---~---,'~::i-----I 1---_10 EXHIBIT A OTAY WATER DISTRICT SAN DIEGO -TIJUANA CROSS BORDER FACILITY LOCATION MAP 00738-090062 -) IMPERIAL lEACH • "...,...... ~..( ~....11-+1~1------l 2lI~c ....~""""----'-----..-I 0 ~---,---~r----,----+..__~s\E~WiiEJimtAilo;....~::jr--------~--..-. I'l ~ EXHIBIT B Background Information The Otay Water District (District)prepared the December 2010 Water Supply Assessment Report (WSA Report)for the San Diego-Tijuana Cross Border Facility (Cross Border Project)development proposal at the request of the City of San Diego (City).The City's WSA request letter dated December 10,2010 was received by the District on December 14,2010 so the 90 day deadline for the District to provide the Board approved WSA Report to the City ends March 13,2011.The Otay-Tijuana Ventures,LLC submitted an entitlement application to the City for the development of the Cross Border Project. The Cross Border 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 (Metropolitan).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 Metropolitan. The Cross Border Project entitlement approval is independent of the City's eventual adoption of land use Scenario 3B to their planned update to the Otay Mesa Community Plan (OMCP).The OMCP Update as planned will introduce a new land use designation known as International Business and Trade (IBT).The IBT land use designation combines the current Business Park and Light Industrial land use designations and allows for single and multiple tenant office,research and development,light manufacturing,and storage and distribution uses.The City is proposing to apply the IBT designation to portions of land adjacent to the border, other ports of entry,and lands in transition to higher intensity industries.Due to delays in the OMCP Update preparation and hearing schedule,Otay -Tijuana Ventures,LLC entitlement application includes a separate Community Plan Amendment (CPA)and a Planned Development Permit (PDP)to allow for the development of the Cross Border Project hotels,retail centers,cargo facility,parking garage,cross border terminal facility,and the industrial lots prior to adoption of the OMCP Update.The IBT land use will be applied to the industrial lots with this entitlement application. The WSA Report for the Cross Border Project has been prepared by the District in consultation with PBS&J,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.SB 610 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.The requirements of SB 610 are addressed in the December 2010 WSA Report for the Cross Border Project. The Otay -Tijuana Ventures,LLC proposed development concept for the approximately 63.8 acre Cross Border Project consists of a combination of land uses including retail space,industrial lots,two 150-room hotels,a cargo facility,a parking garage,and a cross-border terminal facility providing secure air-passenger access to the passenger terminals of the General Abelardo L.Rodriguez International Airport. This entitlement demand for the Cross Border Project with the IBT land use will increase the expected demand to approximately 84,800 gpd or about 95 acre feet per year (ac-ft/yr).This is 31,100 gpd or 35 ac-ft/yr higher than the demand estimate in the District's 2009 WRMP. The District currently depends on the Water Authority and the Metropolitan for all of its potable water supplies and regional water resource planning. The District's Urban Water Management Plan (UWMP)relies heavily on the UWMP's and Integrated Water Resources Plans (IRPs)of the Water Authority and Metropolitan 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. The new uncertainties that are significantly affecting California's water resources include: • A Federal Court ruling that sets operational limits on Sacramento-San Joaquin Delta pumping from December to June to protect the Delta smelt.Water agencies are still trying to determine what effect the ruling will have on state water project deliveries.Actual supply curtailments for Metropolitan are contingent upon fish distribution,behavioral patterns,weather,Delta flow conditions,and how water supply reductions are divided between state and federal projects. •Extended drought conditions. These uncertainties have rightly caused concern among Southern California water supply agencies regarding the validity of the current water supply documentation. Metropolitan's October 9,2007 IRP Implementation Report acknowledges that significant challenges in some resource areas will likely require changes in strategies and implementation approaches in order to reach long-term IRP water supply targets. Significant progress in program implementation is being realized in most resource areas.However,a further examination of the uncertainty of State Water Project supplies,among other uncertainties,will be required to assess the ability of achieving the long-term IRP targets. 2 Metropolitan 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.Metropolitan is actively engaged in these processes and in October 2010,approved the update of their IRP.An approved implementation strategy update may not be forthcoming for a year or more. The State Water Project (SWP)represents approximately 9%of Metropolitan'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 Metropolitan supplies in 2025.Neither the Water Authority nor Metropolitan 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,Metropolitan can allocate water without regard to historic water purchases or dependence on Metropolitan.Therefore,the Water Authority and its member agencies are taking measures to reduce dependence on Metropolitan through development of additional supplies and a water supply portfolio that would not be jeopardized by a preferential rights allocation. For Fiscal Year 2006 the Water Authority's preferential right was 16.56%of Metropolitan's supply.So Metropolitan could theoretically take an 8.5%cut out of 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 2005 UWMP,they had already planned to reduce reliance on Metropolitan supplies to 372,922 acre-feet per year by 2030,which is a 28% reduction from the Fiscal Year 2005 Water Authority purchase from Metropolitan. This reduction is planned to be achieved through diversification of their water supply portfolio.This reduction would more than compensate for the Metropolitan predicted 22%reduction in water supply available from the State Water Project,which could be an overall 2%cutback in Metropolitan total supplies in 2025. 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 District Board of Directors should 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 (Le.,the 3 Water Authority and Metropolitan),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 Cross Border 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.Metropolitan's 2010 IRP update will then cause the Water Authority to update its IRP and UWMP,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 Cross Border Project WSA Report does not in any way guarantee water supply to the Cross Border Project. Alternatively,if the WSA 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 Cross Border Project WSA Report,the 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 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 Cross Border Project. Some recent actions regarding water supply assessments and verification reports by entities within Southern California are as follows: •The City approved water supply assessment reports for both the La Jolla Crossings Project and the Quarry Falls Project in September 2007. 4 •Padre Dam Municipal Water District approved a water supply assessment report for the City of Santee's Fanita Ranch development project in April 2006. In October 2007,a follow-up letter was prepared stating the current uncertainties associated with the regional water supply situation.However, the letter concludes that sufficient water exists over the long run in reliance upon the assurances,plans,and projections of the regional water suppliers (Metropolitan and Water Authority). •The District unanimously approved in July 2007 the Eastern Urban Center Water Supply and Assessment Report.The Board also approved the Judd Company Otay Crossings Commerce Park WSA Report on December 5,2007 and the Otay Ranch L.P.Otay Ranch Preserve and Resort Project Water Supply Assessment and Verification Report on February 4,2009. •The District approved water supply assessment and verification reports for the City of Chula Vista Village 8 West Sectional Plan Area and Village 9 Sectional Plan Area.Staff is also working with the City of San Diego on a WSA for Scenario 3B Otay Mesa Community Plan Update.The Pio Pico Power Plant on Alta Road within the County of San Diego may also require a WSA for the temporary use of potable water to serve the power plant. Water supplies necessary to serve the demands of the proposed Cross Border 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 Metropolitan. The WSA 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 Cross Border Project. The WSA 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 Cross Border Project and the existing and other planned development projects within the District. Accordingly,after approval of a WSA Report for the Cross Border Project by the District's Board of Directors,the WSA Report may be used to comply with the requirements of the legislation enacted by Senate Bills 610 as follows: Senate Bill (SB)610 Water Supply Assessment:The District's Board of Directors approved WSA Report may be incorporated into the California Environmental Quality Act (CEQA)compliance process for the Cross Border Project as a water supply assessment report consistent with the requirements of the legislation enacted by SB 610.The City,as lead agency under the CEQA for the Cross Border Project environmental documentation,may cite the approved WSA Report 5 as evidence that a sufficient water supply is planned and intended to be available to serve the Cross Border Project. 6 EXHIBIT C OTAY WATER DISTRICT WATER SUPPLY ASSESSMENT REPORT for the San Diego -Tijuana Cross Border Facility Prepared by: Bob Kennedy,P.E. Associate Civil Engineer Otay Water District in consultation with PBS&J and San Diego County Water Authority December 2010 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility Otay Water District Water Supply Assessment Report December 2010 San Diego -Tij uana Cross Border Facility Table of Contents Executive Summary 1 Section 1 -Purpose 6 Section 2 -Findings 7 Section 3 -Project Description 9 Section 4 -Otay Water District 11 Section 5 -Historical and Projected Water Demands 13 5.1 Demand Management (Water Conservation)20 Section 6 -Existing and Projected Supplies 22 6.1 Metropolitan Water District of Southern California 2005 Regional Urban Water Management Plan 22 6.2 San Diego County Water Authority Regional Water Supplies 25 6.2.1 Availability ofSufficient Supplies and Plans for Acquiring Additional Supplies 26 6.3 Otay Water District 37 6.3.1 Availability ofSufficient Supplies and Plans for Acquiring Additional Supplies 37 Section 7 -Conclusion:Availability ofSufficient Supplies 52 Source Documents 59 Appendices Appendix A:San Diego -Tijuana Cross Border Facility Vicinity Map Appendix B:San Diego -Tijuana Cross Border Facility Development Plan Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility Otay Water District Water Supply Assessment Report December 2010 San Diego -Tijuana Cross Border Facility Executive Summary The Otay Water District (WD)prepared this Water Supply Assessment Report (WSA Report) at the request ofthe City ofSan Diego (City)for the San Diego -Tijuana Cross Border Facility (Cross Border)Project.Otay -Tijuana Ventures,LLC submitted an entitlement application to the City for the development ofthe Cross Border Project. The Cross Border Project is located within the jurisdictions ofthe Otay WD,the San Diego County Water Authority (Water Authority),and the Metropolitan Water District ofSouthern California (Metropolitan).To obtain permanent imported water supply service,land areas are required to be within the jurisdictions ofthe Otay WD,Water Authority,and Metropolitan. The Otay -TUuana Ventures,LLC proposed development concept for the approximately 63.8 acre Cross Border Project consists ofa combination ofland uses including retail space, industrial lots,two I50-room hotels,a cargo facility,a parking garage,and a cross-border terminal facility providing secure air-passenger access to the passenger terminals ofthe Tijuana Rodriguez International Airport. The Cross Border Project entitlement approval is independent ofthe City's eventual adoption of land use Scenario 3B to their planned update to the Otay Mesa Community Plan (OMCP). The OMCP Update as planned will introduce a new land use designation known as International Business and Trade (IBT).The IBT land use designation combines the current Business Park and Light Industrial land use designations and allows for single and multiple tenant office,research and development,light manufacturing,and storage and distribution uses.The City is proposing to apply the IBT designation to portions ofland adjacent to the border,other ports ofentry,and lands in transition to higher intensity industries.Due to delays in the OMCP Update preparation and hearing schedule,Otay -Tijuana Ventures,LLC entitlement application includes a separate Community Plan Amendment (CPA)and a Planned Development Permit (PDP)to allow for the development ofthe Cross Border Project hotels,retail centers,cargo facility,parking garage,cross border terminal facility,and the industrial lots prior to adoption ofthe OMCP Update.This will include the new IBT land use designation on the industrial lots. Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility The expected demands for the Cross Border Project is 84,800 gallons per day (gpd)or about 95 acre feet per year (ac-ft/yr).This is 31,100 gpd or 35 ac-ft/yr higher than the demand estimate in the District's 2009 Water Resource Master Plan (WRMP).Otay -Tijuana Venture retained PBS&J to update the 2009 WRMP to include the entitlement densities and intensities ofdevelopment proposed with the Otay Mesa Community Plan Update.The District's 2009 WRMP updated November,2010 now includes the 95 ac-ft/yr demand estimate in the District's demand projections that was forwarded to the Water Authority for inclusion in their UWMP update.The projected recycled water demand for the proposed Cross Border Project is approximately 9,900 gpd or 11 ac-ft/yr,representing about 11 %ofthe total Cross Border Project water demand. The Cross Border Project development proponents are required to use recycled water for irrigation and other potential purposes.The primary benefit ofusing recycled water is that it will offset the potable water demand by an estimated 11 ac-ft/yr.The Otay WD 2009 WRMP and 2005 Urban Water Management Plan (UWMP)anticipated that the Cross Border Project site would use both potable and recycled water. Planned Imported Water Supplies from the Water Authority and Metropolitan The Water Authority and Metropolitan 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 ofGovernments (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 Metropolitan update their demand forecasts and supply needs based on the most recent SANDAG forecast approximately every five years to coincide with preparation oftheir Urban Water Management Plans (UWMP). Prior to the next forecast update,local jurisdictions with land use authority may require water supply assessment and/or verification repOlis for proposed land developments that are not within the Otay WD,Water Authority,or Metropolitan 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 Metropolitan 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 ofannexations 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 ifagencies are planning adequately to reliably meet future 2 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility demands.As such,UWMPs serve as an important element in documenting supply availability for the purpose ofcompliance with state laws,Senate Bill 610,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. The Water Authority has started their update to their 2005 UWMP however a new legislative mandate,SBX 7-7 (2009)requires retail agencies to report their target for a 20 percent reduction in urban per capita use by December 31,2020.To address the new per capita water use reduction measures,the bill grants a 6-month extension to urban retail water suppliers to submit their approved UWMP to the California Department of Water Resources (DWR)by July 1,2011.As a wholesale supplier,the Water Authority did not receive the extension and is currently required to submit its UWMP to DWR by December 31,2010.However,Senate Bill 1478 corrected language in SBX 7-7 to grant wholesale suppliers the same 6-month extension on their UWMPs. The District's 2009 WRMP updated November,2010 now includes the 95 acre-foot per year demand estimate in the District's demand projections that was forwarded to the Water Authority for inclusion in their UWMP update.SANDAG and the City ofSan Diego have also confirmed the land use Scenario 3B ofthe Otay Mesa Community Plan Update that forms the basis for the Cross Border Project entitlement was included in the Series 12 update that has been forwarded to both Metropolitan and the Water Authority for their future UWMP updates.The Series 12 update was also made available to Metropolitan for their use to develope demand projections in to their 20 I0 Integrated Resource Plan (IRP)Update. Metropolitan's IRP identifies a mix ofresources (impolied and local)that,when implemented,will provide 100 percent reliability for full-service demands through the attainment ofregional targets set for conservation,local supplies,State Water Project supplies,Colorado River supplies,groundwater banking, and water transfers.The 2004 update to the IRP (2004 IRP Update)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 ofwater that could potentially be developed when needed and ifother supplies are not fully implemented as planned.As part of implementation ofthe planning buffer,Metropolitan 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. Water supply agencies throughout California continue to face climate,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 current ongoing drought impacting the western states.Challenges such as these essentially always will be present. 3 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility The regional water supply agencies,the Water Authority and Metropolitan,along with Otay WD nevertheless fully intend to have sufficient,reliable supplies to serve demands. In Section II.4 oftheir 2005 Regional Urban Water Management Plan (RUWMP), Metropolitan states that through effective management of its water supply,they fully expect to be 100 percent reliable in meeting all non-discounted non-interruptible demands throughout the next twenty-five years.Metropolitan's 2005 RUWMP identifies potential reserve supplies in the supply capability analysis (Tables II-7, II-8,and II-9),which could be available to meet the unanticipated demands such as those related to the densification ofthe Cross Border Project. The County Water Authority Act,Section 5 subdivision II,states that the Water Authority "as far as practicable,shall provide each ofits member agencies with adequate supplies of water to meet their expanding and increasing needs." As part of preparation ofa written water supply assessment report,an agency's shortage contingency analysis should be considered in determining sufficiency of supply.Section 9 of the Water Authority's 2005 Updated UWMP contains a detailed shol1age 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,completed in May 2006,provides the Water Authority and its member agencies with a series ofpotential actions to take when faced with a shortage of imported water supplies from Metropolitan due to prolonged drought or other supply shortfall conditions.The actions will help the region avoid or minimize the impacts ofshortages and ensure an equitable allocation ofsupplies. Otay WD Water Supply Development Program In evaluating the availability ofsufficient water supply,the Cross Border Project development proponents will be required to participate in the water supply development program being implemented by the Otay WD.This is intended to be achieved through financial participation in several local and/or regional water supply development projects envisioned by the Otay WD.These water supply projects are in addition to those identified as sustainable supplies in the current Water Authority and Metropolitan 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 ofthe planning process.Imported water supplies along with the Otay WD water supply development projects supplies are planned to be developed and are intended to increase water supplies to serve the Cross Border Project water supply needs and that ofother similar situated development projects.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 Rosarito 4 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility Ocean Desalination Facility project,and the Rancho del Rey Groundwater Well project.The Water Authority and Metropolitan's next forecasts and supply planning documents would capture any increase in water supplies resulting from any new water resources developed by the Otay WD. Findings This WSA Report for the Cross Border Project has been prepared by the Otay WD in consultation with PBS&J,the Water Authority,and the City pursuant to Public Resources Code Section 21151.9 and California Water Code Sections 10631,10656, 10657, 10910, 10911,10912,and 10915 referred to as Senate Bill (SB)610.SB 610 amended state law, effective January 1,2002,to improve the link between information on water supply availability and celtain land use decisions made by cities and counties.SB 610 requires that the water purveyor ofthe public water system prepare a water supply assessment to be included in the California Environmental Quality Act (CEQA)environmental documentation and approval process ofcertain proposed projects.The City requested that Otay WO prepare a water supply assessment as per the requirements ofSB 610.The requirements ofSB 610 are being addressed by this WSA Report. The Cross Border Project development concept exceeds the thresholds contained in the legislation enacted by SB 610 and therefore requires preparation ofa WSA report.The Cross Border Project is considered as an industrial development and is not a residential subdivision project of more than 500 units and hence it is not subject to the requirements ofSenate Bill 221 for preparation ofa Water Supply Verification Report. The WSA Report identifies and describes the processes by which water demand projections for the proposed Cross Border Project will be fully included in the water demand and supply forecasts ofthe Urban Water Management Plans and other water resources planning documents ofthe Water Authority and Metropolitan.Water supplies necessary to serve the demands ofthe proposed Cross Border 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 Cross Border Project WSA Report and will be included in the future water supply planning documents ofthe Water Authority and Metropolitan. This WSA Repolt includes,among other information,an identification ofexisting water supply entitlements,water rights,water service contracts,water supply projects,or agreements relevant to the identified water supply needs for the proposed Cross Border Project.This WSA 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 ofthe proposed Cross Border Project and the existing and other planned development projects to be served by the Otay WO. 5 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility Accordingly,after approval ofa WSA Report for the Cross Border Project by the Otay WD Board of Directors (Board),the WSA Report may be used to comply with the requirements of the legislation enacted by Senate Bill 610 as follows: Senate Bi1l610 Water Supply Assessment:The Otay WD Board approved Cross Border Project WSA Report may be incorporated into the California Environmental Quality Act (CEQA)compliance process for the Cross Border Project as a water supply assessment report consistent with the requirements ofthe legislation enacted by SB 610.The City,as lead agency under CEQA for the Cross Border Project EIR,may cite the approved WSA Report as evidence that a sufficient water supply is planned for and is intended to be made available to serve the Cross Border Project. Section 1 -Purpose Otay -Tijuana Ventures,LLC submitted an entitlement application to the City of San Diego (City)for the development ofthe San Diego -Tijuana Cross Border Facility (Cross Border) Project.The City requested that the Otay Water District (WD)prepare a Water Supply Assessment (WSA)Report for the Cross Border Project.The Cross Border Project description is provided in Section 3 ofthis WSA Report. This WSA Report for the Cross Border Project has been prepared by the Otay WD in consultation with PBS&J,the San Diego County Water Authority (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.SB610 amended state law,effective January 1,2002,intending to improve the link between information on water supply availability and celiain land use decisions made by cities and counties.SB 610 requires that the water purveyor ofthe public water system prepare a water supply assessment to be included in the California Environmental Quality Act (CEQA) environmental documentation and approval process ofcertain proposed projects.The requirements ofSB 610 are being addressed by this WSA Report. The Cross Border Project development concept exceeds the thresholds contained in the legislation enacted by SB 610 and therefore requires preparation ofa WSA report.The Cross Border Project is considered as an industrial development and is not a residential subdivision project of more than 500 units and hence it is not subject to the requirements ofSenate Bill 221 for preparation ofa Water Supply Verification Report. This WSA 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 ofthe Cross Border Project,and reasonably foreseeable planned future water demands to be served by Otay WD.The Otay WD Board ofDirectors 6 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility approved WSA Report is planned to be used by the City in its evaluation ofthe Cross Border Project under the CEQA approval process procedures. Section 2 -Findings The Otay WD prepared this WSA Report at the request ofthe City for the Cross Border Project.Otay -Tijuana Ventures,LLC submitted an entitlement application to the City for the development ofthe Cross Border Project. The Cross Border Project is located within the jurisdictions of the Otay WD,the Water Authority,and the Metropolitan Water District of Southern California (Metropolitan).To obtain permanent imported water supply service,land areas are required to be within the jurisdictions ofthe Otay WD,Water Authority,and Metropolitan to utilize imported water supply. The Cross Border Project entitlement approval is independent ofthe City's eventual adoption ofland use Scenario 3B to their planned update to the Otay Mesa Community Plan (OMCP). The OMCP Update as planned will introduce a new land use designation known as International Business and Trade (IBT).The IBT land use designation combines the current Business Park and Light Industrial land use designations and allows for single and multiple tenant office,research and development,light manufacturing,and storage and distribution uses.The City is proposing to apply the IBT designation to pOliions of land adjacent to the border,other ports of entry,and lands in transition to higher intensity industries.Due to delays in the OMCP Update preparation and hearing schedule,Otay -Tijuana Ventures,LLC entitlement application includes a separate Community Plan Amendment (CPA)and a Planned Development Permit (PDP)to allow for the development ofthe Cross Border Project hotels,retail centers,cargo facility,parking garage,cross border terminal facility,and the industrial lots prior to adoption ofthe OMCP Update.This will include the new IBT land use designation on the industrial lots. Upon approval ofthe project,the IBT land use will increase the expected demand to approximately 84,800 gpd or about 95 acre feet per year (ac-ft/yr).This is 31,100 gpd or 35 ac-ft/yr higher than the demand estimate in the District's 2009 WRMP.Otay -Tijuana Venture retained PBS&J to update the 2009 WRMP to include the entitlement densities and intensities ofdevelopment proposed with the Otay Mesa Community Plan Update.The District's 2009 WRMP updated November,2010 now includes the 95 ac-ft/yr demand estimate in the District's demand projections that was forwarded to the Water Authority for inclusion in their UWMP update.The projected recycled water demand for the proposed Cross Border Project is approximately 9,900 gpd or 11 ac-ft/yr,representing about 11 %ofthe total Cross Border Project water demand. 7 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility The Cross Border Project development proponents are required to use recycled water for irrigation and appropriate uses.The primary benefit ofusing recycled water is that it will offset the potable water demands by an estimated 11 ac-ft/yr.The Otay WD 2009 WRMP updated November,2010 and 2005 Urban Water Management Plan (UWMP)anticipated that the land area to be utilized for the Cross Border Project would use both potable and recycled water. In evaluating the availability of sufficient water supply,the Cross Border project proponents are required to participate in the development ofalternative water supply project(s).This can be achieved through payment ofthe New Water Supply Fee adopted by the Otay Water District Board in May 20 IO.These water supply projects are in addition to those identified as sustainable supplies in the current Water Authority and Metropolitan 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 ofthe 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 Metropolitan next forecast and supply planning documents would capture any increase in water supplies resulting from any new water resources developed by the Otay WD. The Water Authority and Metropolitan 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 ofGovernments (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 Metropolitan update their demand forecasts and supply needs based on the most recent SANDAG forecast approximately every five years to coincide with preparation oftheir 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,or Metropolitan jurisdictions (i.e.pending or proposed annexations)or that have revised land use plans with lower or higher land use 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 anticipated.The Otay WD,the Water Authority,and Metropolitan 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 Metropolitan to document the water supplies necessary to serve the demands ofany proposed development project,along with 8 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility existing and other projected future users,as well as the actions necessary to develop any required water supplies.Through this process the necessary demand and supply information is thus assured to be identified and incorporated within the water supply planning documents ofthe Water Authority and Metropolitan. This WSA Report includes,among other information,an identification ofexisting water supply entitlements,water rights,water service contracts,proposed water supply projects,and agreements relevant to the identified water supply needs for the proposed Cross Border Project.This WSA Report incorporates by reference the current Urban Water Management Plans and other water resources planning documents ofthe Otay WD,the Water Authority, and Metropolitan.The Otay WD prepared this WSA Report to assess and document that sufficient water supplies are planned for and are intended to be acquired to meet projected water demands ofthe Cross Border Project as well as 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 ofthe Otay WD (49,812 acre-feet (ac-ft)in 20 10 to 82,405 ac-ft in 2030 per the Otay WD 2005 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 7%higher than the normal demands.The Otay WD recycled water supply is assumed to be drought-proofand not subject to reduction during dry periods. Together,these findings assess,demonstrate,and document 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 are and will be further documented,to serve the proposed Cross Border Project and the existing and other reasonably foreseeable planned development 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 Cross Border Project is located within the Otay Mesa Community Plan (OMCP)area in the City of San Diego.Refer to Appendix A for a vicinity map ofthe proposed Cross Border Project.The Cross Border Project is bounded by Siempre Viva Road to the north and the U.S./Mexico international border to the south.The Cross Border Project is within the jurisdictions ofthe Otay WD,the Water Authority,and Metropolitan Water District of Southern California (Metropolitan).Although the proposed development is located within the municipal boundaries ofthe City and subject to the City's land use jurisdiction,the Otay WD is the potable and recycled water purveyor. 9 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility The Cross Border Project entitlement approval is independent ofthe City's eventual adoption ofland use Scenario 3B to their planned update to the Otay Mesa Community Plan (OMCP). The OMCP Update as planned will introduce a new land use designation known as International Business and Trade (IBT).The IBT land use designation combines the current Business Park and Light Industrial land use designations and allows for single and multiple tenant office,research and development,light manufacturing,and storage and distribution uses.The City is proposing to apply the IBT designation to pOliions of land adjacent to the border,other ports ofentry,and lands in transition to higher intensity industries.Due to delays in the OMCP Update preparation and hearing schedule,Otay -TUuana Ventures,LLC entitlement application includes a separate Community Plan Amendment (CPA)and a Planned Development Permit (PDP)to allow for the development ofthe Cross Border Project hotels,retail centers,cargo facility,parking garage,cross border terminal facility,and the industrial lots prior to adoption ofthe OMCP Update.This will include the new IBT land use designation on the industrial lots. The City's OMCP Update is currently in the development planning process phase and is scheduled for adoption in 2011.The OMCP area is a dynamic and rapidly developing area of the City.The OMCP Update will establish goals and objectives for future development that will implement the vision and policies while enhancing the image ofthe Otay Mesa. The proposed development concept for the approximately 63.8 acre Cross Border Project is planned as a combination of land uses as shown in Table I. Table 1 Cross Border Project Proposed Land Uses Cross Border Facility (73,500 sq.ft.)Industrial/Commercial 9.1 acres Parking Garage Industrial/Commercial 9.0 acres Cargo Industrial/Commercial 5.0 acres International Business &Trade Industrial 17.1 acres Retail Shops (78,500 sq.ft.)Commercial 5.2 acres Hotels (2)Commercial 10.1 acres Streets/Detention Basin Public Facility 8.3 acres Totals 63.8 acres Source:Latitude 33,San Diego -Tijuana Cross Border Facility Lot Area Exhibit, September 24,2009 (Appendix B) o o o o o 300 Rooms o 300 Rooms The Cross Border Project is on approximately 63.8 acres and is planned to include retail space,industrial lots,two ISO-room hotels,a cargo facility,a parking garage,and a cross- 10 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility border terminal facility providing secure air-passenger access to the passenger terminals of the Tijuana Rodriguez International Airport.The terminal facility does not plan to utilize cooling towers for air conditioning purposes.Additionally,the site proposed to develop two ISO-room hotels and approximately 78,500 square feet ofretail space that will serve the crossing facility customer needs.The remaining industrial lots do not include any specific development plans.As each ofthese lots develops in the future,it would be subject to the project approval and permitting processes ofthe City and Otay WD.Refer to Appendix B for the proposed development plan ofthe Cross Border Project. The City has discretionary authority on land use decisions for the Cross Border Project and can establish actions and/or permit approval requirements.The projected potable and recycled water demands associated with the Cross Border Project have considered the anticipated City discretionary actions and/or permit approvals and are incorporated into and used in this WSA Report.The water demands for the proposed Cross Border Project are included in the projected water demand estimates 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 impol1ed water throughout its service area.The Water Authority is an agency responsible for the wholesale supply ofwater to its 24 public agency members in San Diego County. The Otay WD currently relies on the Water Authority for 100 percent ofits treated water supply.The Water Authority is the agency responsible for the supply of imported water into San Diego County through its membership in Metropolitan.The Water Authority currently obtains the vast majority of its imported supply from Metropolitan,but is in the process of further 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 million gallons per day (mgd)or about 1,300 acre feet per year (ac-ft/yr)to produce recycled water.On May 18,2007 an additional source ofrecycled water supply,at least 6 mgd,or about 6,720 ac-ft/yr,became available to Otay WD from the City ofSan Diego's South Bay Water Reclamation Plant (SBWRP). II Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility 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 EI Cajon,La Mesa,Rancho San Diego,Jamul, Spring Valley,Bonita,and Otay Mesa,the eastern portion ofthe City ofChula Vista and a portion ofthe 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 lrrigation District (Sweetwater Authority)and the City of San Diego.The southern boundary ofOtay WD is the international border with Mexico. The planning area addressed in the Otay WD 2009 Water Resources Master Plan (2009 WRMP)and the Otay WD revised 2005 Urban Water Management Plan (2005 UWMP) includes the land within the jurisdictional boundary ofthe Otay WD and those areas outside ofthe present Otay WD boundaries considered to be in the Area of lnfluence ofthe Otay WD. Figure 2-1 contained within the Otay WD 2009 WRMP shows the jurisdictional boundary of the Otay WD and the Area oflnfluence.The planning area is approximately 143 square miles,ofwhich approximately 125 square miles are within the Otay WD current boundaries and approximately 18 square miles are in the Area ofInfluence.The area east ofOtay WD is rural and currently not within any water purveyor jurisdiction and potentially could be served by the Otay WD in the future ifthe need for impolied water becomes necessary,as is the case for the Area of Influence. The City ofChula Vista,the City ofSan Diego,and the County ofSan 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 ofgrowth within Otay WD were obtained from the San Diego Association of Governments (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 2005 figure of approximately 179,000 to an estimated 268,000 by 2025,and is estimated to be 277,000 at ultimate build out.Land use 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,City ofChula Vista,and County of San Diego General Plans. The Otay WD long-term historic growth rate has been approximately 3%per year.Up until the recent economic downturn,growth was occurring at a faster rate due to accelerated residential development in the eastern portion ofthe City ofChula Vista.The growth rate has significantly slowed due to the current economic conditions and it is expected to slow as the inventory ofdevelopable 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 12 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility temperatures occasionally dipping to below freezing.Most ofthe region's rainfall occurs during the months of December through March.Average annual rainfall is approximately 9.4 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 ofmost ofthe Otay WD service area.While there is a station in the City of Chula Vista,the temperature variation at the City ofChula Vista station is more typical of a coastal environment than the conditions in most ofthe Otay WD service area. Urban Water Management Plan [n accordance with the California Urban Water Management Planning Act,the Otay WD Board ofDirectors adopted an Urban Water Management Plan in December 2005 and subsequently submitted the plan to the California Department ofWater Resources (DWR). DWR required Otay WD to make revisions to the submitted plan.The Otay WD Board of Directors adopted the revised Otay WD 2005 UWMP in July 2007.As required by law,the Otay WD 2005 UWMP includes projected water supplies required to meet future demands through 2030.In accordance with Water Code Section 10910 (c)(2)and Government Code Section 66473.7 (c)(3),information from the Otay WD 2005 UWMP along with supplemental information from the Otay WD 2009 WRMP updated November,2010 have been utilized to prepare this WSA Report and are incorporated herein by reference. 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,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 ofthe Otay WD 2009 WRMP updated November,2010 and Otay WD 2005 UWMP to develop the forecasted demands and supply requirements. 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. 13 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility The foundation ofthe 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 ofAgreement (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 effol1s,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 San Diego County Water Authority 2010 Urban Water Management Plan update.The SANDAG Series 12:2050 Regional Growth Forecast included the land use Scenario 3B of the Otay Mesa Community Plan Update that forms the basis for the entitlement densities and intensities ofdevelopment for this project. The municipal and industrial forecast also included an updated accounting of projected conservation savings based on projected regional implementation ofthe California Urban Water Conservation Council (CUWCC)Best Management Practices and SANDAG demographic information for the period 2005 through 2030.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 Metropolitan 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 ofthe cities and the county.This provides for consistency between the retail and wholesale agencies water demand projections,thereby ensuring that adequate 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 Metropolitan will update their demand forecasts based on the SANDAG most recent forecast approximately every five years to coincide with preparation oftheir urban water management plans.Prior to the next forecast update,local jurisdictions may require water supply assessment and/or verification reports 14 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility 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 Metropolitan or that have revised land use plans than originally anticipated.The Water Authority and Metropolitan's next forecasts and supply planning documents would then capture any increase or decrease in demands caused by annexations or revised land use plans. The state ofCalifornia Business and Professions Code Section 11010 and Government Code Sections 65867.5, 66455.3,and 66473.7,are referred to as SB 221,requires affirmative written verification from the water purveyor ofthe public water system that sufficient water supplies are to be available for certain residential subdivisions ofproperty prior to approval of a tentative map.SB 221 compliance does not apply to the Cross Border Project as it is an industrial subdivision. In evaluating the availability ofsufficient water supply,the Cross Border Project development proponents will be required to participate in the development ofalternative water supply project(s).This can be achieved through payment ofthe New Water Supply Fee adopted by the Otay Water District Board in May 20 IO.These water supply projects are in addition to those identified as sustainable supplies in the current Water Authority and Metropolitan 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 ofthe 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 Rosarito Ocean Desalination Facility project,and the Rancho del Rey Groundwater Well project.The Water Authority and Metropolitan's next forecasts and supply planning documents would capture any increase in water supplies resulting from any new water resources developed by the Otay WD. In addition,Metropolitan's 2005 Regional Urban Water Management Plan identified potential reserve supplies in the supply capability analysis (Tables II-7, II-8,and II-9),which could be available to meet any unanticipated demands.The Water Authority and Metropolitan's next forecasts and supply planning documents would capture any increase in necessary supply resources resulting from any new water supply resources. Demand Methodology The Otay WD water demand projection methodology utilizes a component land use approach. This is done by applying representative values ofwater use to the acreage ofeach 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 gallons per day per acre per year.This approach is used for all the 15 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility 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 golfcourses,schools,jails,prisons,hospitals,etc.where specific water demands are established. 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 ofthe land uses,and water duties are determined for the various types ofresidential,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 (gpd/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 ofthe 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 ofthe total developable planning area ofthe Otay WD. The future underlying land use designation for the Cross Border Project industrial lots will be the IBT land use designation,which combines uses permitted in both the Business Park and light industrial designations.The designation allows for single-and multi-tenant office, research and development,light manufacturing,and storage and distribution uses.Because there is no water demand rate established for IBT in the Series 11 employment data,City staff established an employee density of 30 employees per acre and a water demand factor of60 gpd per employee for a demand of 1,800 gpd per acre.The IBT Rate assumes a mixture of 1/3 heavy industrial,1/3 light industrial,and 1/3 industrial parks. Given the unusual nature ofthe terminal building,the development of reasonable and supportable estimates ofwater demand in this instance merits a customized approach.After carefully considering the proposed design and function ofthe facility,including its passenger counts and employee counts,water use for the terminal building is evaluated on a per passenger and per employee based projection of water demands. The 2009 WRMP calculates potable water demand by taking the gross acreage ofa site and applying a potable water reduction factor (PWRF),which is intended to represent the percentage ofacreage 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%ofthe site is assumed to be served by potable water,5%ofthe 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 2009 WRMP 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. 16 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility Otay WD Projected Demand By applying the established water duties to the proposed land uses,the projected water demand for the entire Otay WO 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 SANOAG and the experience ofthe Otay WO. The historical and projected potable water demands for Otay WO are shown in Table 2. Table 2 Historical and Projected Potable Water Fiscal Year Demands (acre-feet) Incorporating Water Conservation BMP Efforts' Residential 10,604 15,331 19,850 25,442 29,130 33,316 37,211 42,089 Multi-Famil Residential 1,880 1,986 2,893 3,708 4,245 4,855 5,423 6,134 Commercial &Industrial 1,650 3,043 1,549 1,986 2,274 2,600 2,904 3,285 Institutional &Governmental 1,680 2,089 2,115 2,711 3,104 3,550 3,965 4,485 Landsca e 3,983 6,256 8,512 10,910 12,491 14,286 15,956 18,048 A ricultural 487 171 2,268 2,907 3,328 3,806 4,251 4,809 Known Losses **511 655 749 857 957 1,083 S stem Losses *1,733 1,076 1,494 1,711 1,957 2,186 2,472 Totals 20,284 30,609 38,774 49,813 57,032 65,227 72,853 82,405 I Source:Otay WD 2005 UWMP. *Known losses (i.e.unaccounted for water in the Otay WD 2005 UWMP)and system losses unavailable. 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 (acre-feet) Incorporating Water Conservation BMP Efforts! Landscape 614 Totals 614 I Source:Otay WD 2005 UWMP. 1,274 1,155 4,040 4,684 5,430 6,294 7,297 1,274 1,155 4,040 4,684 5,430 6,294 7,297 17 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility Cross Border Project Projected Water Demand Using the land use demand projection noted above,the projected potable water demand and projected recycled water demand for the proposed Cross Border Project are shown in Table 4 and Table 5 respectively.The projected potable water demand is 84,800 gpd,or about 95 ac- ft/yr.The projected recycled water demand is 9,900 gpd,or about 11 ac-ft/yr,representing about 11 %ofthe total Cross Border Project demand. Table 4 Cross Border Facility Project Projected Potable Water Annual Average Demands Cross Border Facility (73,500 sq. ft.of Industrial/Commercial)I Passengers Employees Parking Garage ([ndustriaI/Commercial)2 Cargo (Industrial/Commercial) [ndustrial Lots3 Retail Shops (78,500 sq.ft.of Commercial)4 Hotels (Commercial)s Streets/Detention Basin (Public Facility) 9.1 9.0 5.0 [7.[ 5.2 [0.1 8.3 6,500 persons 2.1 gpd/person 13,700 gpd 69 persons 23 gpd/person 1,600 gpd [00%9.0 ac 45 gpd/ac 400 gpd 95%4.8 ac 893 gpd/ac 4,300 gpd 95%16.8 ac 1,800 gpd/ac 30,300 gpd 80%4.2 ac 1,785 gpd/ac 7,500 gpd 300 rooms 90 gpd/room 27,000 gpd Totals 63.8 acres 84,800 gpd I The employee unit use factor based on scheduled air transpOliation employee water use from the "Commercial and Industrial End Uses ofWater"report by the American Wastewater Association Research Foundation. 2Parking garage demands assumed to be equivalent to 5%of industrial land use unit demands. 3 Industrial demands use IBT unit use factors. 4Commercial demands are per criteria from the 2009 WRMP. SHotel indoor water use based on industry references from the American Wastewater Association Research Foundation "Commercial and Industrial End Uses of Water",2000. The Cross Border Project development proponents are required to use recycled water for irrigation and for other appropriate uses.The primary benefit ofusing recycled water is that it will offset the potable water demands by an estimated 11 ac-ft/yr.The 2009 WRMP and 2005 UWMP anticipated that the Cross Border Project site would use both potable and recycled water. 18 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility Table 5 Cross Border Project Projected Recycled Water Average Demands Cross Border Facility 9.1 acres 5%0.46 acres 2,155 gpd/acre 1,000 gpd Parking Garage 9.0 acres 0%0.00 acres 2,155 gpd/acre ogpd Cargo 5.0 acres 5%0.25 acres 2,155 gpd/acre 500 gpd Industrial Lots 17.1 acres 5%0.85 acres 2,155 gpd/acre 1,800 gpd Retail Shops 5.2 acres 20%1.04 acres 2,155 gpd/acre 2,200 gpd Hotels 10.1 acres 20%2.02 acres 2,155 gpd/acre 4,400 gpd Streets/Detention Basin 8.3 acres Totals 63.8 acres 9,900 gpd The Otay WD 2009 WRMP projected a potable water demand for the project site based on land uses prior to the IBT designation.Using the Otay WD unit demand factors,the projected potable water demand is approximately 53,700 gpd,or approximately 60 ac-ft/yr.Assuming that all supply for the Cross Border Project would be from imported water resources,the projected potable water demand ofthe Cross Border Project exceeds the imported water planned supply to the site by approximately 31,100 gpd,or approximately 35 ac-ft/yr as summarized in Table 6.The projected recycled water demand for the proposed Cross Border Project is approximately 9,900 gpd or II ac-ft/yr,representing about 10%of the total Cross Border Project water demand. Table 6 Cross Border Facility Project Projected Potable Water Demand/Supply Comparison Cross Border Project Projection Otay WD 2009 WRMP Projection Difference 90,400 53,700 36,700 95 60 35 19 Gtay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility 5.1 Demand Management (Water Conservation) Demand management,or water conservation is a critical part ofthe Otay WD 2005 UWMP and its long term strategy for meeting water supply needs ofthe Otay WD customers.Water conservation,is frequently the lowest cost resource available to any water agency.The goals ofthe 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 ofa region's water supply resources.The Otay WD pat1icipates in many water conservation programs designed and typically operated on a shared cost participation program basis among the Water Authority,Metropolitan,and their member agencies.The demands shown in Tables 2,3,4,and 5 take into account implementation of water conservation measures within Otay WD. As one ofthe 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 ofthe Water Authority,Otay WD also benefits from regional programs performed on behalfof 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 2005 UWMP.In partnership with the Water Authority,the County ofSan Diego,City of San Diego,City ofChula 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: 20 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility 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 ofthese functions provide for operating personnel to monitor the water supply source flow rates,reservoir levels,turn on or offpumping units,etc.The SCADA system aids in the prevention of water reservoir overflow events and increases energy efficiency. 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 ofwater used by the people therein for the purpose ofconserving water supplies of such public entity.The Otay WD Board ofDirectors 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 shol1age.A water shortage could exist based upon the occurrence ofone or more of the following conditions: I.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 ofthe supply,storage,and distribution facilities of Metropolitan, 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 ofuse,ofwater be prevented and that the conservation ofsuch water be encouraged with a view to the maximum reasonable and beneficial use thereof in the interests ofthe people of the Otay WD and for the public welfare. As a signatory to the MOU Regarding Urban Water Conservation in California,the Otay WD is required to submit biannual repol1s that detail the implementation ofcurrent water conservation practices.The Otay WD voluntarily agreed to implement the fourteen water conservation Best Management Practices beginning in 1992.The Otay WD submits its report to the CUWCC every two years.The Otay WD 8MP Reports for 200 I to 2004,as well as the BMP Coverage Report for 2003-04,are included in the Otay WD 2005 UWMP. The Cross Border Project will implement the CUWCC Best Management Practices for water conservation such as installation ofultra low flow toilets,development of a water conversation plan,and potential beneficial use of recycled water,all of which are typical requirements ofdevelopment projects within the City of San Diego. 21 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility 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 Metropolitan.The statutory relationships between the Water Authority and its member agencies,and Metropolitan and its member agencies,respectively, establish the scope ofthe Otay WD entitlement to water from these two agencies. The Water Authority through two delivery pipelines,referred to as Pipeline No.4 and the La Mesa Sweetwater Extension Pipeline,currently supply the Otay WD with lOO percent of its potable water.The Water Authority in turn,currently purchases the majority of its water from Metropolitan.Due to the Otay WD reliance on these two agencies,this WSA Report includes referenced documents that contain information on the existing and projected supplies,supply programs,and related projects ofthe Water Authority and Metropolitan.The Otay WD, Water Authority,and Metropolitan are actively pursuing programs and projects to further diversify their water supply resources. The description of local recycled water supplies available to the Otay WD is also discussed below. 6.1 Metropolitan Water District of Southern California 2005 Regional Urban Water Management Plan In November 2005,Metropolitan adopted its 2005 Regional Urban Water Management Plan (RUWMP).The 2005 RUWMP provides Metropolitan's member agencies,retail water utilities,cities,and counties within its service area with,among other things,a detailed evaluation ofthe supplies necessary to meet future demands,and an evaluation of reasonable and practical efficient water uses,recycling,and conservation activities.During the preparation ofthe 2005 RUWMP,Metropolitan also utilized the previous SANDAG regional growth forecast in calculating regional water demands for the Water Authority service area. 6.1.1 Availability ofSufficient Supplies and Plans for Acquiring Additional Supplies Metropolitan 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 (S WP).The 2005 RUWMP documents the availability ofthese existing supplies and additional supplies necessary to meet future demands. 22 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility 6.1.1.1 Metropolitan Supplies Metropolitan's Integrated Resources Plan (lRP)identifies a mix of resources (imported and local)that,when implemented,will provide 100 percent reliability for full-service demands through the attainment ofregional 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 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 ofthe planning buffer,Metropolitan 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 future demands. In November 2005,Metropolitan adopted its 2005 RUWMP in accordance with state law. The resource targets included in the preceding 2004 IRP Update serve as the foundation for the planning assumptions used in the 2005 RUWMP.Metropolitan's 2005 RUWMP contains a water supply reliability assessment that includes a detailed evaluation ofthe 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,Metropolitan also uses the current SANDAG regional growth forecast in calculating regional water demands for the Water Authority's service area. As stated in Metropolitan's 2005 RUWMP,that plan may be used as a source document for meeting the requirements ofSB 610 and SB 221 until the next scheduled update is completed in 2010.The 2005 RUWMP includes a "Justifications for Supply Projections"in Appendix A.3,that provides detailed documentation ofthe planning,legal,financial,and regulatory basis for including each source ofsupply in the plan.A copy ofMetropolitan's 2005 RUWMP can be found on the internet at the following site address: http://www.mwdh20.com/mwdh20/pages/yourwater/RUWMP/RUWMP 2005.pdf SANDAG has included the increase in density from this project in their latest Series 12 Update.Now that Metropolitan has updated their IRP,both Metropolitan and the Water Authority will be updating their UWMPs.The UWMP for both Metropolitan and the Water Authority will include the increase in demand projections included in SANDAG's Series 12 Update and from the projections from Otay WD 2009 WRMP updated November,2010. Water supply agencies throughout California continue to face climate,environmental,legal, and other challenges that impact water source supply conditions,such as the COlllt 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 23 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility supply agencies,the Water Authority and Metropolitan,along with Otay WD nevertheless fully intend to have sufficient,reliable supplies to serve demands. 6.1.1.2 Pipeline 6 Metropolitan completed its System Overview Study (SOS)in fall 2005.The SOS determines ifMetropolitan's current system is capable ofdelivering the supplies to meet the demands shown in its 2004 IRP Update. Pipeline 6 is included in the SOS as an untreated water pipeline to deliver additional Metropolitan supplies to the San Diego County region.The addition ofPipeline 6 would allow the Water Authority and Metropolitan to convert one ofthe existing untreated water pipelines to a treated water pipeline.With the conversion,the capacity to import both treated and untreated water would increase significantly,thereby enabling Metropolitan to increase both treated and untreated imported water delivery capacity to the San Diego County region. Based on current planning assumptions ofthe Water Authority and Metropolitan,new imported supplies delivered though Pipeline 6 would be required no earlier than 2018,absent development ofnew supplies from seawater desalination or some combination ofnew local supplies,totaling 56,000 ac-ft/yr (see Section 6.2.1 below).With development of 56,000 ac- ft/yr,Pipeline 6 would not be needed until 2023.Based on a nine-year lead time requested by Metropolitan,a decision to proceed with Pipeline 6 would need to be communicated to Metropolitan by 2009.Activities associated with implementation of Pipeline 6 include the following: •Coordination between Metropolitan and the Water Authority regarding planning and design of Pipeline 6 is ongoing. •An alignment for the entire approximately 30-mile pipeline was identified in the original 1993 Environmental Impact Report.Metropolitan is conducting a feasibility study to revisit the 1993 alignment and evaluate alternative alignments north of the San Luis Rey River in light ofchanged conditions since 1993.The Water Authority plans to conduct a similar feasibility study of Pipeline 6 alignments south ofthe San Luis Rey River.Based on these updated feasibility studies,an updated environmental analysis for the project is also planned. 6.1.2 Metropolitan Capital Investment Plan Metropolitan prepares a Capital Investment Plan as part of its annual budget approval process. The cost,purpose,justification,status,progress,etc.ofMetropolitan's infrastructure projects to deliver existing and future supplies are documented in the Capital Investment Plan.The financing ofthese projects is addressed as part ofthe annual budget approval process. 24 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility Metropolitan's Capital Investment Plan includes a series of projects identified from Metropolitan 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 ofcriteria to ensure they are aligned with the Metropolitan'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 2005 UWMP in November 2005 and updated the 2005 UWMP in April 2007.The updated Water Authority 2005 UWMP identifies a diverse mix of local and imported water supplies to meet future demands.A copy of the updated Water Authority 2005 UWMP can be found on the internet at http://www.sdcwa.org •Deliveries of conserved agricultural water from the Imperial Irrigation District (lID)to San Diego County have increased annually since 2003,with 70,000 ac-ft ofdeliveries in Fiscal Year (FY)20 10. •As part ofthe October 2003 Quantification Settlement Agreement (QSA),the Water Authority was assigned Metropolitan's rights to 77,700 ac-ft/yr ofconserved water from the All-American Canal (AAC)and Coachella Canal (CC)lining projects.The Water Authority has nearly completed implementation ofthese projects,with the CC project now complete and deliveries being made to the San Diego County region. Through implementation ofthe Water Authority and member agency planned supply projects, along with reliable imported water supplies from Metropolitan,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 ofthe member agencies are included in the Water Authority's projections. 25 Dtay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility 6.2.1 Availability ofSufficient Supplies and Plans for Acquiring Additional Supplies The Water Authority currently obtains imported supplies from Metropolitan,conserved water from the AAC and CC lining projects,and an increasing amount of conserved agricultural water from lID.Ofthe twenty-seven member agencies that purchase water supplies from Metropolitan,the Water Authority is Metropolitan's largest customer.In FY 2006,the Water Authority purchased 577,944 ac-ft:fi'om Metropolitan,an increase of approximately 4,000 ac- ft over the FY 2005 amount. Section 135 of Metropolitan's Act defines the preferential right to water for each of its member agencies.As calculated by Metropolitan,the Water Authority's FY 2006 preferential right is 16.46%ofMetropolitan's supply,while the Water Authority accounted for approximately 25%of Metropolitan's water sales.Under preferential rights,Metropolitan could allocate water without regard to historic water purchases or dependence on Metropolitan.The Water Authority and its member agencies are taking measures to reduce dependence on Metropolitan through development of additional supplies and a water supply portfolio that would not be jeopardized by a preferential rights allocation.Metropolitan has stated,consistent with Section 4202 ofits 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,Metropolitan stated it will be prepared to deliver such supplies.In Section II.4 oftheir 2005 RUWMP,Metropolitan states that through effective management of its water supply,they fully expect to be 100 percent reliable in meeting all non-discounted non-interruptible demands throughout the next twenty-five years. The Water Authority has made large investments in Metropolitan's facilities and will continue to include imported supplies from Metropolitan in the future resource mix.As discussed in the Water Authority's 2005 UWMP,the Water Authority and its member agencies are planning to diversify the San Diego regions supply portfolio and reduce purchases from Metropolitan. 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 ofthe AAC lining project.Table 7 summarizes the Water Authority's supply sources with detailed information included in the sections to follow.Deliveries from Metropolitan are also included in Table 7,which is f1ll1her 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 ofthe Water Authority's 2005 UWMP. 26 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility Table 7 Projected Verifiable Water Supplies -Water Authority Service Area Normal Year (acre feet) Water Authority Supplies Metropolitan Supplies 445,858 399,855 331,374 342,870 372,922 Water Authority/llD Transfer 70,000 100,000 190,000 200,000 200,000 AAC and CC Lining Projects 77,700 77,700 77,700 77,700 77,700 Member Agency Supplies Local Surface Water 59,649 59,649 59,649 59,649 59,649 Recycled Water 33,668 40,662 45,548 46,492 47,584 Seawater Desalination 0 34,689 36,064 37,754 40,000 Groundwater 17,175 18,945 19,775 19,775 19,775 Groundwater Recovery 11,400 11,400 11,400 11,400 11,400 Total Projected Supplies 715,450 742,900 771,510 795,640 829,030 Source:The Water Authority 2005 Urban Water Management Plan. Section 5 ofthe Water Authority's 2005 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.Poseidon Resources is pursuing the development of a local,privately owned desalination project located adjacent to the Encina Power Station.As ofJune 2007,Poseidon has contracted with the Carlsbad Municipal Water District (MWD)(up to 28,000 ac-ftlyr depending on demands),Valley Center MWD (7,500 ac-ft/yr),Rincon Del Diablo MWD (4,000 ac-ft/yr),and Sweetwater Authority (2,400 ac-ft/yr)to supply up to 41,900 ac-ft/yr ofdesalinated seawater.The verifiable seawater desalination figure is based on the contract amounts and projected seawater desalination deliveries to Carlsbad MWD.As shown in Table 7,the verifiable projected local seawater desalination supplies vary each year based on the Carlsbad MWD demands (which are less than their desalinated seawater contract amount of28,000 ac-ft/yr).There are several contingencies related to Poseidon's agreements with these member agencies and the Water Authority that must be satisfied before implementation ofthe project and its ultimate yield can be determined.These contingencies include obtaining legal entitlements for construction ofthe project,determination of a mutually acceptable delivery interconnection points and delivery charge,and engagement ofa third party exchange agency partner where physical delivery to the contracting agency is not practical.The Water Authority is negotiating specific elements for a water purchase agreement with Poseidon which include water purchase price,allocation of risk and options to eventually purchase the project's pipeline and the entire desalination plant.This agreement will supersede the contracts Poseidon has negotiated with the four Districts.Before negotiations begin on a final agreement,Poseidon must secure sufficient financial commitments from private investors to meet requirements for fully funding project construction.In addition,Poseidon must execute all agreements for 27 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility construction and operation ofthe project and finalize the documents needed to finance the project in the bond market. The Water Authority's existing and planned supplies from the lID transfer and canal lining projects are considered "drought-proof'supplies and should be available at the yields shown in Table 7 in normal,single dry,and multiple dry year scenarios.For dry year yields from Metropolitan supplies,refer to Metropolitan's 2005 RUWMP,discussed in Section 6.1 above. As part ofpreparation ofa written water supply assessment and/or verification repoli,an agency's shortage contingency analysis should be considered in determining sufficiency of supply.Section 9 ofthe Water Authority's 2005 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,completed in May 2006,provides the Water Authority and its member agencies with a series ofpotential actions to take when faced with a shOliage ofimported water supplies from Metropolitan 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 ofColorado River water and creates a baseline for implementing water transfers.With approval of the QSA,the Water Authority and lID 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 ofColorado River water to its legal allocation. On April 29,1998,the Water Authority signed a historic agreement with lID for the long-term transfer ofconserved Colorado River water to San Diego County.The Water Authority-lID 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 lID executed an amendment to the original 1998 Transfer Agreement.This amendment modified cetiain aspects ofthe 1998 Agreement to be consistent with the terms and conditions of the QSA and related agreements.It also modified other aspects ofthe agreement to lessen the environmental impacts ofthe transfer ofconserved 28 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility water.The amendment was expressly contingent on the approval and implementation ofthe 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 ofthe QSA,the water transfer,and related agreements.The lawsuits have been coordinated for trial.The lID,Coachella Valley Water District,Metropolitan,the Water Authority,and State are defending these suits and coordinating to seek validation ofthe contracts.Implementation ofthe transfer provisions is proceeding during litigation.For nlrther and the latest information regarding the litigation and current progress,please contact the Water Authority's General Counsel. Expected Supply Deliveries into San Diego County from the transfer began in 2003 with an initial transfer of 10,000 ac-ft.The Water Authority received 20,000 ac-ft in 2004,30,000 in 2005,and 40,000 in 2006.The quantities will increase annually to 200,000 ac-ft by 2021 then remain fixed for the duration ofthe Transfer Agreement.The initial term ofthe 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 lID Colorado River rights,which are among the most senior in the Lower Colorado River Basin.Without the protection ofthese rights,the Water Authority could suffer delivery cutbacks.In recognition for the value ofsuch reliability,the 1998 contract required the Water Authority to pay a premium on transfer water under defined regional shotiage circumstances. The shortage premium period duration is the period ofconsecutive days during which any ofthe following exist:1)a Water Authority shortage;2)a shotiage condition for the Lower Colorado River as declared by the Secretary;and 3)a Critical Year.Under terms ofthe 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 Metropolitan on October 10, 2003,to transport the Water Authority-lID transfer water from the Colorado River to San Diego County.Under the exchange agreement,Metropolitan will take delivery ofthe transfer water through its Colorado River Aqueduct.In exchange,Metropolitan will deliver to the Water Authority a like quantity and quality ofwater.The Water Authority will pay Metropolitan's applicable wheeling rate for each acre-foot of exchange water delivered.According to the water exchange agreement,Metropolitan will make delivery ofthe transfer water for 35 years,unless the Water Authority elects to extend the agreement another 10 years for a total of45 years. 29 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility Cost/Financing The costs associated with the transfer are proposed to be financed through the Water Authority's rates and charges.In the agreement between the Water Authority and lID,the price for the transfer water started at $258 per acre-foot and increases by a set amount for the first five years.The 2005 price for transfer water is $276 per acre-foot.Procedures are in place to evaluate and determine market-based rates following the first five-year period. In accordance with the October 2003 amended exchange agreement between Metropolitan and the Water Authority,the initial cost to transport the conserved water was $253 per acre- foot.Thereafter,the price would be equal to the charge or charges set by Metropolitan's Board of Directors pursuant to applicable laws and regulation,and generally applicable to the conveyance ofwater by Metropolitan on behalf of its member agencies.The transportation charge in 2005 is $258 per acre-foot. 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.At the end ofthe fifth year of the transfer agreement (2007),the Water Authority will prepay lID an additional $10 million for future deliveries ofwater.IID will credit the Water Authority for this up-front payment during years 16 through 30. As part of implementation ofthe QSA and water transfer,the Water Authority also entered into an environmental cost sharing agreement.The agreement specifies that the Water Authority will contribute $64 million for the purpose of funding environmental mitigation costs and contributing to 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 ofConserved Water by and between lID 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 lID 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 ofthe transfer ofconserved water to the Water Authority. 30 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility Amended and Restated Agreement between Metropolitan and Water Authority for the Exchange of Water (October 10,2003).This agreement was executed pursuant to the QSA and provides for delivery ofthe transfer water to the Water Authority. Environmental Cost Sharing,Funding,and Habitat Conservation Plan Development Agreement among lID,Coachella Valley Water District (CVWD),and Water Authority (October 10,2003).This Agreement provides for the specified allocation ofQSA-related environmental review,mitigation,and litigation costs for the term ofthe QSA,and for development ofa Habitat Conservation Plan. Quantification Settlement Agreement Joint Powers Authority Creation and Funding Agreement (October 10,2003).The purpose ofthis agreement is to create and fund the QSA Joint Powers Authority and to establish the limits ofthe funding obligation ofCVWD,lID, and Water Authority for environmental mitigation and Salton Sea restoration pursuant to SB 654 (Machado). Federal,State,andLocal 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 lID and Water Authority's amended joint petition for approval ofa long- term transfer ofconserved water fi'om IID to the Water Authority and to change the point of diversion,place ofuse,and purpose ofuse 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 ofReclamation and associated with lID/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.lID 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. 31 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility CA Department ofFish and Game California Endangered Species Act Incidental Take Permit #2081-2003-024-006).The California Department ofFish and Game issued this permit (l0/22/04)for potential take effects on state-listed/fully protected species associated with [[D/other California water agencies'actions on listed species in the Imperial Valley and Salton Sea (per the June 28,2002 E[R). California Endangered Species Act (CESA)Permit.A CESA permit was issued by California Department ofFish 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 ofthe QSA and related contracts,the Water Authority was assigned Metropolitan's rights to 77,700 ac-ft/yr ofconserved water from projects that will line the All-American Canal (AAC)and Coachella Canal (CC).The projects will reduce the loss ofwater 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 IIO-year life ofthe agreement. Implementation Status The Coachella Canal lining project is complete and operational and the All-American Canal lining project is operational complete with some remaining construction activities to be concluded. Earthwork for the Coachella Canal lining project began in November 2004 and involves approximately 37 miles ofcanal.National Environmental Policy Act (NEPA)and CEQA documentation is complete,including an amended Record of Decision by the U.S.Bureau of Reclamation (USSR).The amendment was required after revising the project design:instead of lining the canal in place,the project entailed the construction ofa parallel canal.The project was completed in 2006,and deliveries ofconserved water started in 2007. The construction related activities are neatly complete on the AAC lining project with construction to be 100 percent complete in 20 10.The lining project consists ofconstructing a concrete-lined canal parallel to 24 miles ofthe existing AAC from Pilot Knob to Drop 3. [n July 2005,a lawsuit (CDEMv United States,Case No.CV-S-05-0870-KJD-PAL)was filed in the U.S.District Court for the District ofNevada on behalfof U.S.and Mexican groups challenging the lining of the AAC.The lawsuit,which names the Secretary ofthe 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 ofCalifornia'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. 32 Dtay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility ~xpecte(iSl{pply The AAC lining project will yield 67,700 acre-feet per year ofColorado River water for allocation upon completion ofconstruction.The CC lining project will yield 26,000 acre-feet of Colorado River water each year available for allocation upon completion ofconstruction. The October 10,2003,Allocation Agreement states that 16,000 acre-feet per year of conserved CC lining water will be allocated to the San Luis Rey Indian Water Rights Settlement Parties.The remaining amount,10,000 acre-feet per year from the CC lining conserved water plus the 67,700 acre-feet per year AAC lining conserved water totaling 77,700 acre-feet per year,will be available to the Water Authority.According to the Allocation Agreement,IlD has call rights to a portion (5,000 acre-feet per year)ofthe conserved water upon termination ofthe QSA for the remainder ofthe 110 years ofthe 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 Metropolitan also provides for the delivery ofthe conserved water from the canal lining projects.The Water Authority will pay Metropolitan's applicable wheeling rate for each acre-foot of exchange water delivered.In the Agreement,Metropolitan will deliver the canal lining water for the term ofthe Allocation Agreement (II0 years). Cost/Financing Under California Water Code Section 12560 et seq.,the Water Authority will receive $200 million in state funds for construction ofthe projects.In addition,under California Water Code Section 79567,$20 million from Proposition 50 is also available for the lining projects. Additionally,the Water Authority will receive $35 million for groundwater conjunctive use projects as pali of the agreement.The Water Authority would be 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 Metropolitan's Board ofDirectors pursuant to applicable law and regulation and generally applicable to the conveyance ofwater by Metropolitan on behalfof 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. 33 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility 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 Depaltment ofthe Interior to reduce seepage from the existing earthen AAC and CC.The law provides that conserved water will be made available to specified Calitornia contracting water agencies according to established priorities. California Department of Water Resources -Metropolitan Funding Agreement (2001). Reimburse Metropolitan for project work necessary to construct the lining ofthe CC in an amount not to exceed $74 million.Modified by First Amendment (2004)to replace Metropolitan with the Authority.Modified by Second Amendment (2004)to increase funding amount to $83.65 million,with addition offunds from Proposition 50. California Department ofWater Resources -no Funding Agreement (2001).Reimburse lID for project work necessary to construct a lined AAC in an amount not to exceed $126 million. Metropolitan -CVWD Assignment and Delegation of Design Obligations Agreement (2002). Assigns design ofthe CC lining project to CVWD. Metropolitan -CVWD Financial Arrangements Agreement for Design Obligations (2002). Obligates Metropolitan to advance funds to CVWD to cover costs for CC lining project design and CVWD to invoice Metropolitan to permit the Depmtment of Water Resources to be billed for work completed. Allocation Agreement among the United States ofAmerica,The Metropolitan 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 ofEscondido,and Vista Irrigation District (October 10,2003).This agreement includes assignment ofMetropolitan's rights and interest in delivery of77,700 acre-feet ofColorado River water previously intended to be delivered to Metropolitan 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 [[0,if it exercises its call rights. Amended and Restated Agreement between Metropolitan and Water Authority for the Exchange ofWater (October 10,2003).This agreement was executed pursuant to the QSA and provides for delivery ofthe conserved canal lining water to the Water Authority. Agreement between Metropolitan and Water Authority regarding Assignment ofAgreements related to the AAC and CC Lining Projects.This agreement was executed in April 2004 and assigns Metropolitan's rights to the Water Authority for agreements that had been executed to facilitate funding and construction ofthe AAC and CC lining projects: 34 Dtay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility Assignment and Delegation ofConstruction Obligations for the Coachella Canal Lining Project under the Department ofWater 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 ofReclamation,the Coachella Valley Water District,and the San Diego County Water Authority for the Construction ofthe Coachella Canal Lining Project Pursuant to Title 11 ofPublic Law 100-675, dated October 19,2004. 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 fUltherance 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 of2002 (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 ofthe agencies that those fllOds will be available for use by the Water Authority,TID,or CVWD for the AAC and CC lining projects. California Public Resources Code Section 75050(b1).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 EIRIEIS analyzing the potential impacts oflining 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 ofthe NEPA and the CEQA and would be valid in the future. CC Lining Project Final EIS/EIR (April 200 I).The tinal EIR/EIS for the CC lining project was completed in 200 I.Reclamation signed the Record ofDecision in April 2002.An amended Record ofDecision 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. 35 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility Environmental Commitment Plan for the Coachella Canal Lining Project.approved by the US Bureau ofReclamation (Boulder City,NY)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 lID). Addendum to Final EIS/EIR and Amendment to Environmental Commitment Plan for the All-American Canal Lining Project (approved June 27,2006,by no Board of Directors). 6.2.2 Water Authority Capital Improvement Program and Financial Information The Water Authority's capital improvement program (CIP)budget document includes a description ofeach ofthe projects and programs being implemented to ensure existing and future facilities are adequate to deliver water supplies throughout the region.The project costs,along with information on the activities that need to be completed,are included in the CIP document.The Water Authority's Master Plan identifies future facilities and other improvements to the Water Authority's system that are necessary to maintain reliability throughout the region.A programmatic environmental impact report was certified by the Water Authority Board of Directors for the Master Plan in November 2003.Projects identified in the Master Plan will be included in the CIP based on Water Authority Board of Directors'approval.Information on the Water Authority's most recent CIP can be found on the internet at www.sdcwa.org/infra/cip.phtml. One of the highest priority projects identified in the Master Plan is the development of additional treatment capacity within the region.During recent summers,the Water Authority experienced peak-demand conditions that have exceeded the region's rated treatment capacity.The Master Plan recommended development of an additional 50 mgd oftreatment capacity immediately and another 50 mgd capacity by 20 IO.In response to this recommendation,the Water Authority board of directors in September 2005,approved construction of a 100 mgd water treatment plant.The water treatment plant was completed and placed into operation in 2008. The Master Plan also identified carryover storage as a way to improve water supply reliability for the region.The Water Authority identified the three main benefits ofcarryover storage as: 1)enhance water supply reliability by providing a reliable and readily available source of water during periods ofpotential shortage,such as during dry years;2)increase system efficiency by providing operational flexibility to serve above normal demands,such as those occurring in dry years,from storage rather than by the over-sizing ofthe Water Authority's imported water transmission facilities;and 3)better management of water supplies to allow the Water Authority to accept additional imported deliveries during periods of availability, such as during wet years,to ensure water availability during dry years.The Water Authority 36 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility prepared an EIR/EIS for a carryover storage project,with the preferred alternative being an expansion ofthe San Vicente Reservoir. The Water Authority Board ofDirectors is provided a semi-annual and annual report on the status ofdevelopment of the eIP 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 2009 Urban Water Management Plan updated November,2010 and the revised 2005 Urban Water Management Plan contains comparisons of projected supply and demands through the year 2030.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 ofraw 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 Metropolitan UWMP,IRP,Master Plans,and other planning documents.These new additional water supply projects are not currently developed and are in various stages ofthe planning process.These local and regional water supply projects will allow for less reliance upon impol1ed water and are considered a new water supply resource for the Otay WD. The Otay WD expansion ofthe market areas for the use ofrecycled water within the watersheds upstream ofthe Sweetwater Reservoir and the Lower Otay Reservoir,and Otay Mesa will increase recycled water use and thus require less dependence on imported water for irrigation purposes. The supply forecasts contained within this WSA Report do consider development and/or acquisition ofpotential 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 ofsufficient potable water supplies and plans for acquiring additional potable water supplies to serve existing and future demands ofthe Otay WD is founded upon the preceding discussions regarding Metropolitan's and the Water Authority's water supply resources and water supplies to be acquired by the Otay WD.Historic impol1ed water 37 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility 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 8. 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 ofSan Diego's South Bay Water Reclamation Plant (SB WRP)became available.The supply of recycled water from the SBWRP is a result ofessentially completing construction and commencement ofoperations ofthe transmission,storage,and pump station systems necessary to link the SBWRP recycled water supply source to the existing Otay WD recycled water system. Table 8 Otay Water District Historic Imported and Local Water Supplies 1980 12,558 1985 14,529 1990 23,200 1995 20,922 2000 30,936 2005 40,322 2009 37,566 Source:Otay WD operational records. 6.3.1.1 Imported and Regional Supplies o o o 614 948 1,227 4,533 l2,558 14,529 23,200 21,536 31,884 41,549 42,099 The availability ofsufficient imported and regional potable water supplies to serve existing and planned uses within Otay WD is demonstrated in the above discussion on Metropolitan and the Water Authority's water supply reliability.The County Water Authority Act,Section 5 subdivision II,states that the Water Authority "as far as practicable,shall provide each of its member agencies with adequate supplies ofwater to meet their expanding and increasing needs."The Water Authority provides between 75 to 95 percent ofthe total supplies used by its 24 member agencies,depending on local weather and supply conditions.In calendar year 2009 the supply to Otay WD was 37,566 ac-ft ofsupply from the Water Authority.An additional 4,533 ac-ft of recycled water 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 72,900 ac-ft by 2025 as per the Otay WD 2005 UWMP.These figures take into account the amount oflocal supply (i.e.groundwater, conservation,recycling,etc.)that is expected to meet demands within Otay WD service area. 38 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility Potable Water System Facilities The Otay WD continues to pursue diversification ofits 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 ofSan 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 ofSan 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 ofthe typical storage,transmission,pumping,flow measurement,and appul1enances to receive and transport the treated water to the Otay WD system.The City ofSan Diego obligation to supply 10 mgd oftreated water under the Otay WTP Agreement is contingent upon there being available 10 mgd ofsurplus treatment capacity in the Otay WTP until such time as Otay WD pays the City ofSan Diego to expand the Otay WTP to meet the Otay WD future needs.In the event that the City ofSan Diego's surplus is projected to be less than 10 mgd the City ofSan Diego will consider and not unreasonably refuse the expansion ofthe 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 ofSan Diego's typical demand for treated water from the Otay WTP is approximately 20 mgd.It is at the City ofSan Diego's discretion to 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 ofthe 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 ac-ft/yr oftreated water from the R.M.Levy WTP supplied from the regions raw water system. 39 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility Cost and Financing The capital improvement costs associated with water supply and delivery are financed through the Otay WD water meter capacity fee and user rate structures.The Otay WD potable water sales revenue are used to pay for the wholesale cost ofthe treated water supply and the operating and maintenance expenses ofthe potable water system facilities. Written Agreements,Contracts,or Other Proof The supply and cost associated with deliveries oftreated water from the Otay WTP and the R.M. Levy WTP is based on the following documents. Agreement for the Purchase ofTreated 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 ofSan Diego that provides for 10 mgd ofsurplus 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 ofSan Diego at a rate equal to the actual cost oftreatment 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 ofat least 10,000 ac-ft per year 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 ofthe Otay 14 Flow Control Facility Modification. The Otay WD entered into the Otay 14 Flow Control Facility Modification Agreement dated January 24,2007 with the Water Authority to increase the physical capacity ofthe 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 ofthe 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 ofa 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 ofthe existing systems 40 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility from 8 mgd to 16 mgd.CEQA documentation is complete for both projects.Construction of both ofthese 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 ofthe 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 ofthe Otay WD is located primarily within the eastern area ofthe City ofChula 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,Otay Ranch,and other development projects. The Otay WD projects that annual average demands for recycled water will increase to about 6,294 ac-ft/yr by 2025 and are estimated to approach 10,000 ac-ft/yr at ultimate build out for irrigation purposes.About 1,300 ac-ft/yr of supply is generated by the RWCWRF,with the remainder planned to be supplied to Otay WD by the City ofSan Diego's SBWRP. North District Recycled Water Concept The Otay WD is a recognized leader in the use ofrecycled 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 these areas is in the portion ofthe service area designated as the North District,located within the Middle Sweetwater River Basin watershed upstream ofthe Sweetwater River.The close proximity ofthe recycled water markets in the North District to the Otay WD 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 ofthe Otay WD recycled water system and market area. The purpose ofthe North District Recycled Water System Development Project,Phase I Concept Study,is to identify the feasibility ofusing recycled water in the North District and to investigate and assess any limitations or constraints to its use.The Phase I study components ofthe NOlih District Recycled Water Concept encompassed the preparation of six technical memorandums including the project definition,a discussion ofthe regulatory process,a discussion ofthe protection ofthe watershed that would be affected by recycled 41 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility water use in the North District,identification ofstakeholders, public outreach,and an implementation plan. Several opportunities that could be realized with the implementation ofthe 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 ofincreased 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 ofconcern is total nitrogen.An examination as to how the treatment process might be modified to enhance nitrogen removal and a design is underway to remedy the total nitrogen issue.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 Il would include further investigation ofthe issues identified in Phase 1as requiring further study.These include stakeholder outreach,regulatory issues,and facility planning.The third phase of the etTol1 would include the facility planning,permitting, environmental compliance,design,and construction of the improvements necessary for delivery ofrecycled water to the North District markets. The estimated amount ofimported 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 than be used to offset new potable water demands. 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 ofcapital improvements have been constructed.The supply link consisting ofa 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 andFinancing 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 Metropolitan and the Water 42 Gtay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility Authority's recycled water sales incentive programs are used to help offset the costs for the wholesale purchase and production ofthe 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 ofSan 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 SB WRP at an initial price of $350 per acre-foot.The Otay WD Board ofDirectors approved the final agreement on June 4, 2003 and the San Diego City Council approved the tinal agreement on October 20,2003. Federal,State,and Local Permits/Approvals The Otay WD has in place an agreement with Metropolitan 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 ofthe 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 reclamation requirements for the production,distribution,and use ofrecycled water in the Otay WD service area.The order includes the use oftertiary treated water produced and received from the City ofSan 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 SB WRP and delivered to Otay WD in conformance with Order No.2000-203. 6.3.1.3 Potential Groundwater Supplies The Otay WD 2009 WRMP,2005 UWMP,and the Otay WD March 2007 Integrated Water Resources Plan (2007 IRP)both contain a description ofthe 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 43 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility WD has developed 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 have evolved and have been resurrected 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 water supply portfolio consistent the Otay WD 2007IRP. In recognition of the need to develop sufficient alternative water supplies,the Otay WD has taken the appropriate next steps towards development ofproduction groundwater well projects. There are four 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,the Rancho del Rey Groundwater Well,and the Otay River Groundwater Well Desalination project. Middle Sweetwater River Basin Groundwater Well The Middle Sweetwater River Basin Groundwater Well is a new additional water supply project had been thoroughly studied and documented in the 1990's.The Middle Sweetwater River Basin is located within the Sweetwater River watershed and is that reach of the river from Sweetwater Reservoir to the upstream Loveland Reservoir.The next step in development ofthe Middle Sweetwater River Basin Groundwater Well is the implementation of a pilot well project. The Otay WD in cooperation with Sweetwater Authority and the Water Authority prepared a water resources audit for the Middle Sweetwater River Groundwater Basin in June 1991.The document was prepared by NBS Lowry and is entitled "Middle Sweetwater River System Study Water Resources Audit".The report was prepared as part of an overall study to identify and evaluate water management alternatives within the Middle Sweetwater River System (MSRS).The report graphically summaries water resources data for the MSRS. The Otay WD in cooperation with Sweetwater Authority and the Water Authority prepared an alternatives evaluation study ofthe Middle Sweetwater River System Study Water Resources Audit in May 1993.The document was prepared by Michael R.Welch and is entitled "Middle Sweetwater River System Study Alternatives Evaluation".The overall goal ofthe study was to identity physical projects and/or management strategies which could enhance the availability and quality ofsurface and ground waters within the MSRS. 44 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility The Otay WD prepared potential conjunctive use strategies for the Middle Sweetwater River Basin in September 1994.A report was prepared by Michael R.Welch and is entitled "Middle Sweetwater River Basin Conjunctive Use Alternatives".The report was prepared for the consideration ofthe Otay WD and Sweetwater Authority.The conceptual level planning information within report identifies and evaluates eight conjunctive use alternatives within the Middle Sweetwater River Basin. The ultimate objective ofthe Otay WD is to develop a groundwater well production system within the Middle Sweetwater River Basin capable ofproducing a sustainable yield of potable water as a local supply. The purpose ofthe Middle Sweetwater River Basin Groundwater Well Pilot project is to identify the feasibility of developing a groundwater resource production system and to determine and assess any limitations or constraints that may arise. The Middle Sweetwater River Basin Groundwater Well Pilot Project scope ofwork will accomplish six primary goals as follows: •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 ofwork The groundwater conjunctive use concept planned to be developed is described as the extraction ofthe quantity of water from the groundwater basin that was placed there by customers ofthe Otay WD by means oftheir use ofimported treated water that contributed to the overall volume ofgroundwater within the basin.This quantity has been estimated to be on the order of 12.5%of the total consumption ofthe Otay WD customers within that basin as measured by their water meters.In the 1994/1995 time frame 810 ac-ft/yr was the estimated quantity that was placed into the groundwater basin.Currently,that 12.5%quantity could be on the order of 1,000 ac-ft/yr.The consultant contract scope ofwork will address this Phase I concept while further development ofthe groundwater basin as an additional supply resource is appropriately considered. Further development ofthe groundwater basin to enhance the total groundwater production could be accomplished by the Otay WD by means ofadditional extraction ofwater from the basin that is placed there by means ofeither injection and/or spreading basins using imported untreated water as the resource supply (Phase II).The existing La Mesa Sweetwater Extension Pipeline,owned by the Water Authority,once converted to an untreated water 45 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility deliver system,could be the conveyance system to transport untreated water for 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 of$2,000,000,which includes a contingency and may take up to one and a half years to complete. The primary desired outcome ofthe 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 than 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 200 I 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,[nc.,reportedly stated that the well could produce 3,200 ac-ttlyr 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 200 I authorization to proceed with testing ofthe Otay Mesa Lot 7 Groundwater Well was obtained and the Otay WD proceeded with the investigation ofthis potential groundwater supply opportunity. The May 200 I Geoscience Support Services,Inc.completed for the Otay WD the preparation ofa report entitled,"Otay Mesa Lot 7 Well Investigation,"to assess the Otay Mesa Lot 7 Well.The scope ofwork included a geohydrologic evaluation ofthe well,analyses ofthe water quality samples,management and review ofthe well video log,and documentation of well pump testing. The primary findings,as documented in the report,formed the basis ofthe 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. 46 Dtay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility •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. In October 2001,the outcome and recommendations ofthe Geoscience Support Services,Inc. Otay Mesa Lot 7 Well efforts were presented to the Otay WD Board of Directors.The existing Otay Mesa Lot 7 Well,based upon the above findings,was determined not to be a reliable municipal supply ofpotable 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 is continuing to pursue the Otay Mesa groundwater well opportunity with due consideration of the recommendations ofthe existing repmi and plans to develop a groundwater well production facility to extract perhaps at least 600 ac-ft/yr.The steps necessary to put such a well into production are as follows: •Review the results ofavailable water quality data,video survey for casing and screen condition,and pump testing. •Investigate,discover,and confirm a reliable sufficient quality and quantity of source water. •Establish feasibility and cost effectiveness of a production well system. •Negotiate the purchase ofa well site. •Proceed with the planning,environmental compliance,permitting,design,and construction ofa groundwater well production system. 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 for 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 ac-ft/yr of low quality water for four years until its use was discontinued in April 1995 as McMillin Development Company no longer needed the well.McMillin Development Company had previously notified the Otay WD ofits intent to sell offthe groundwater well asset. The Otay WD continued discussions with McMillin Development Company and decided to determine if the Otay WD could use the water from the well and establish if purchase the property along with the existing well were appropriate.The Otay WD retained Quality Assurance Laboratories to conduct water quality testing in February 1995.It was established that the water from the well had a high total dissolved solids levels that exceeded well over 2,000 milligrams per liter.The Otay WD also retained engineering and well drilling firms, Barrett Consulting Group and Multi Water Systems respectively,which performed pump 47 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility draw down tests in December 1995.The results ofthese efforts established the well's long term yield to be about 629 ac-ft/yr.In February 1996 the Otay WD retained Boyle Engineering Corporation to prepare a feasibility study to compare alternatives for treating and using the groundwater and to provide a benefit/cost analysis.The September 1996 Boyle Engineering Corporation,"Groundwater Treatment Feasibility Study Ranch del Ray Well Site,"report concluded that a Rancho del Rey Groundwater Well project could be feasible.It was established that both capital and operation and maintenance costs would require the well to produce at least 700 ac-ft/yr for a minimum often years to make the project economically viable.In October 1997 the Otay WD became owners ofthe property and well. In May 1997 the Otay WD prepared and submitted to CDPH an Application for an Amended Operating Permit to add as a source water supply the Rancho del Rey Groundwater Well.The CDPH established that it would not issue an amended permit for the operation ofthe Rancho del Rey Groundwater Well and any related treatment facilities until the system design and specifications have reviewed and approved and the facilities must pass field inspection following construction. In April 1998 the Otay WD received four proposals from consultants interested in designing the project.These proposals came in at almost double the estimated cost and in March 2000 the Otay WD decided to suspend further work on the developing the Rancho del Rey Groundwater Well until the project becomes economically viable or other circumstance would make it desirable to pursue development ofthe well. In 2008 the Otay WD decided to reestablish the pursuit of the Rancho del Rey Groundwater Well project based upon the current water supply and water pricing conditions.The steps necessary to put such a well into production are as follows: •Review the results ofavailable data,tests,reports,etc. •Reevaluate the cost effectiveness ofa production well system. •Proceed with the planning,environmental compliance,permitting,design,and construction of a groundwater well production system. Otay River Groundwater Desalination Facility Many local entities in San Diego County have studied the San Diego Formation and are interested in its potable water supply potential.These include the Sweetwater Authority,the Water Authority,City of San Diego,Otay WD,and the United Stated Geological Service. The San Diego Formation extends from the California-Mexico border to near Mission Bay in San Diego County,a distance of approximately 16 miles and from the coast to approximately six miles inland. What is known about the San Diego Formation is that the geology is complex,and at present, only palily understood.The heterogeneity ofthe aquifer makes it extremely difficult to accurately predict groundwater flow or well performance.Few,if any,investigations have 48 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility been performed on the San Diego Formation in the Otay River Valley.Most ofthe knowledge is based in the Sweetwater River Valley and the Tijuana River Valley.Therefore, the Otay River Groundwater Desalination Facility (Otay River)project would produce valuable and useful data to aid in characterizing the San Diego Formation that could ultimately lead to the production ofpotable water. The objective ofOtay WD and Sweetwater Authority is to plan,and potentially permit, design,and construct an Otay River project within the Lower Otay River Basin capable of producing a sustainable yield of potable water as a local supply.The Lower Otay River Basin is located within the Otay River watershed and is that reach ofthe river below the Lower Otay Reservoir.The San Diego Formation is the principal aquifer in the South San Diego Bay area and underlies the Otay River Basin and other river basins. The purpose of the Otay River project is to increase the quantity of local water supply within the South San Diego Bay region by development ofa brackish groundwater well and desalination production system to extract,to the maximum extent practical,groundwater from the San Diego Formation;thereby,reducing imported and treated water demand from the Water Authority and Metropolitan. The development ofthe Otay River project is being developed in a phased approach.The Sweetwater Authority and Otay WD are proceeding with the Otay River project and are paliicipating in all phases ofdevelopment and intend share equally all aspects and outcomes such as costs,risks,water supply,benefits,etc. The Otay River project effort is currently being accomplished in two phases.Phase I,which is well underway,is envisioned as the planning and feasibility aspects of the project intended to determine the viability of extracting brackish groundwater from the San Diego Formation with the purpose to eventually construct brackish groundwater desalination treatment and transport facilities.Phase II is envisioned as proceeding with a pilot project,environmental compliance,permitting,design, construction,operation,maintenance,and other requirements ofthe Otay River project production and transport facilities to treat the groundwater and deliver the produced potable water to customers of both Sweetwater Authority and Otay WD. Proceeding with Phase II is dependent upon the outcomes ofthe Phase I efforts. In 2006,Sweetwater Authority,in partnership with Otay WD received notification from the California Department ofWater Resources (DWR)that Sweetwater Authority had been selected to receive a matching grant for the Otay River Basin Brackish Groundwater Desalination Study.The grant amount from DWR is $242,000.The combined Sweetwater Authority and Otay WD contribution is $357,000,for a total of $599,000 to accomplish the DWR grant study.Through the Otay River Basin Brackish Groundwater Desalination Study, Sweetwater Authority and Otay WD will determine the feasibility ofextracting brackish groundwater from the San Diego Formation.A portion of the work involves the United States Geological Society (USGS)services to construct multi-depth monitoring wells near the Otay River.The monitoring wells have been constructed. 49 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility In 2007,Sweetwater Authority,in partnership with Otay WD received notification from the Water Authority that Sweetwater Authority had been selected to receive a matching grant from the Water Authority Local Investigations and Studies Assistance (USA)grant funding program for the USGS Study ofthe San Diego Formation for Potential In-lieu Conjunctive Use concept.The grant amount is $1,500,000.The combined Sweetwater Authority and Otay WD contribution is $1,500,000,for a total of $3,000,000 to complete the USA grant study. The USGS Study of the San Diego Formation for Potential In-lieu Conjunctive Use effort has two primary objectives as follows. •Develop an integrated,comprehensive understanding ofthe geology and hydrology of the San Diego Formation and the overlying alluvial deposits.With this understanding, the sustainable yield ofthe San Diego Formation can be determined founded upon good science. •Use this understanding to evaluate use ofthe alluvial deposits and the San Diego Formation for an in-lieu conjunctive use project for expanded extraction. The study phase,Phase I,ofthe Otay River project is to collect necessary geologic, groundwater,and water quality data that can be used to determine the safe yield from the aquifer and to develop a solidified plan for completing an Otay River project that could potentially yield at least 4,500 ac-ft/yr ofdesalinated potable water. The achievable goals ofthe Otay River project are as follows: •Obtain valuable well data that can be used to determine the hydro geological condition ofthe San Diego Formation in the Otay River Basin. •Determine the water quality ofthe aquifer in this region. •Conceptually layout the facilities needed to collect,treat,and deliver desalinated water to potable water customers of Sweetwater Authority and Otay WD. •Develop a long-range monitoring program for well development and an implementation plan that clearly identifies the steps needed to complete the ultimate project. The Otay River project will allow the partnering each agency to complete a significant step towards developing a new potable water source from brackish groundwater that is currently not used. 6.3.1.4 Potential Ocean Desalination Supplies 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.This project is known as the Rosarito Ocean Desalination Facility (Rosarito)project.The treatment 50 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility facility is intended to be designed,constructed,and operated in Mexico by a third party.On June 21,2010 a repOli was prepared for the Otay WD by Camp Dresser &McKee,Inc. entitled Rosarito Desalination Facility Conveyance and Disinfection System Project. The Rosarito Desalination Facility Conveyance and Disinfection System Project report 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 Otay WD to import the Rosarito project product water as a new local water supply resource. The three main treatment considerations addressed are: •Treatment required for a reliable,high quality source,which blends effectively with the existing water supply. •Treatment and monitoring required for compliance with the California Department of Public Health (CDPH)regulations. •Treatment required for public perception concerns. While the treatment facility for the Rosarito project will likely not be designed or operated by the Otay WD as the lead agency,it is important that Otay WD maintain involvement with the planning,design,and construction ofthe facility to ensure that the implemented processes provide a product water ofacceptable quality for distribution and use within the Otay WD system as well as potentially in other agencies'systems in the region that may use the product water,e.g.City ofSan Diego,the Water Authority,etc.A seawater reverse osmosis treatment plant removes constituents ofconcern 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 Rosarito Desalination Facility Conveyance and Disinfection System Project report 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.Three alternatives approaches are identified for getting this approval:I)Certification ofthe Rosarito project in Mexico by CDPH;2)Disinfection treatment only in the United States,receiving a waiver of specific filtration requirements through CDPH;and 3)Full filtration and disinfection treatment ofwater entering the United States with waiver ofcertain typical Watershed Sanitary Survey requirements.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 51 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility the regional alternative assumes that other regional and/or local agencies would also participated in the Rosarito project. On November 3,20 10,the District authorized the General Manager to enter into an agreement with AECOM for the engineering design,environmental documentation,and the permitting for the construction ofthe conveyance pipeline,pump station,and disinfection facility to be constructed within the District.The supply target is assumed to be 50 mgd. The Otay WD is proceeding with negotiations among the parties to establish water supply resource acquisition terms through development of a Principles ofUnderstanding 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 2009 WRMP updated November,20 10.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 proceed 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 2009 WRMP updated November,20 10.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 ofthe 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 Cross Border Project is currently located within the jurisdictions ofthe Otay WD,Water Authority,and Metropolitan.To obtain permanent imported water supply service,land areas are required to be within the jurisdictions of the Otay WD,Water Authority,and Metropolitan to utilize imported water supply. 52 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility The Water Authority and Metropolitan 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 ofGovernments (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 Metropolitan 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 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 Metropolitan 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 Metropolitan 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 ofannexations or revised land use planning decisions. Metropolitan'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 ofregional targets set for conservation,local supplies,State Water Project supplies,Colorado River supplies,groundwater banking,and water transfers.The 20 10 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, Metropolitan 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 11.4 oftheir 2005 Regional Urban Water Management Plan (RUWMP), Metropolitan states that through effective management of its water supply,they fully expect to be 100 percent reliable in meeting all non-discounted non-interruptible demands throughout the next twenty-five years.Metropolitan's 2005 RUWMP identifies potential reserve supplies in the supply capability analysis (Tables [[-7,[[-8,and [[-9),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." 53 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility As part of preparation ofa written water supply assessment report,an agency's shortage contingency analysis should be considered in determining sufficiency of supply.Section 9 of the Water Authority's 2005 Updated 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 ofwater supplies.The OMP,completed 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 Metropolitan 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 ofsupplies. The WSA Report identifies and describes the processes by which water demand projections for the proposed Cross Border Project will be fully included in the water demand and supply forecasts ofthe Urban Water Management Plans and other water resources planning documents ofthe Water Authority and Metropolitan.Water supplies necessary to serve the demands of the proposed Cross Border 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 Cross Border Project WSA Report and will be included in the future water supply planning documents ofthe Water Authority and Metropolitan. This WSA Report includes,among other information,an identification ofexisting water supply entitlements,water rights,water service contracts,water supply projects,or agreements relevant to the identified water supply needs for the proposed Cross Border Project.This WSA 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 Cross Border Project and the existing and other planned development projects to be served by the Otay WD. Table 9 presents the forecasted balance ofwater demands and required supplies for the Otay WD service area under average or normal year conditions.The OWD 2005 UWMP demand projection for FY 20 10 of49,812 acre feet is substantially higher than the actual demand for that fiscal year.The total actual demand for FY 20 I0 was 36,500 acre feet.The demand for FY 2010 is 6,500 acre feet lower than the peak demand ofFY 2006 of43,000 acre feet.The drop in demand is a result ofthe unit price ofwater,the conservation efforts of users as a result ofthe prolonged drought,and the economy. Table 10 presents the forecasted balance of water demands and supplies for the Otay WD service area under single dry year conditions.Table 11 presents the forecasted balance of water demands and supplies for the Otay WD service area under multiple dry year conditions for the five year period ending in 2015.Multiple dry year conditions for periods ending 2020, 2025,and 2030 are provided in the Otay WO revised 2005 UWMP.The projected potable 54 Otay Water District Water Supply Assessment Report San Diego -T(juana Cross Border Facility demand and supply requirements shown the Tables 9,10,and 11 are from the Otay WD revised 2005 UWMP adjusted to reflect the additional 35 ac-ft/yr for the Cross Border Project and groundwater supply development of 600 ac-ft/yr by the Otay WD.Hot,dry weather may generate urban water demands that are about 7 percent greater than normal.This percentage was utilized to generate the dry year demands shown in Tables 10 and 11.The recycled water and groundwater supplies are assumed to experience no reduction in a dry year. Table 9 Projected Balance of Water Demands and Supplies Normal Year Conditions (acre feet) Demands Otay WD Demand 49,812 57,033 65,229 72,854 82,405 Cross Border Demand Increase 0 35 35 35 35 Total Demand 49,812 57,068 65,264 72,889 82,440 Supplies Water Authority Supply 45,772 51,784 59,234 65,995 74,543 Recycled Water Supply 4,040 4,684 5,430 6,294 7,297 Otay WD Groundwater Supply 0 600 600 600 600 Total Supply 49,812 57,068 65,264 72,889 82,440 Supply Surplus/(Deficit)0 0 0 0 0 Table 10 presents the forecasted balance ofwater demands and supplies for the Otay WD service area under single dry year conditions as from the Otay WD revised 2005 UWMP adjusted to reflect the additional 38 ac-ft/yr for the Cross Border Facility Project and groundwater supply development of600 ac-ft/yr by the Otay WD. 55 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility Table 10 Projected Balance of Water Demands and Supplies Single Dry Year Conditions (acre feet) Demands Otay WD Demand 53,299 61,025 69,795 77,954 88,173 Cross Border Demand Increase 0 38 38 38 38 Total Demand 53,299 61,063 69,833 77,992 88,211 Supplies Water Authority Supply 49,253 55,779 63,803 7[,098 80,314 Recycled Water Supply 4,040 4,684 5,430 6,294 7,297 Otay WD Groundwater Supply 0 600 600 600 600 Total Supply 53,299 61,063 69,832 77,992 88,211 Supply Surplus/(Deficit)0 0 0 0 0 Dry year demands assumed to generate a 7%increase in demand over normal conditions for each year in addition to new demand growth. Table 11 presents the forecasted balance ofwater demands and supplies for the Otay WD service area under multiple dry year conditions for the five year period ending in 2015 as from the Otay WD revised 2005 UWMP adjusted to retlect the additional 38 ac-ft/yr for the Cross Border Project and groundwater supply development of600 ac-ft/yr by the Otay WD. The multiple dry year conditions for periods ending 2020,2025,and 2030 are provided in the Otay WD revised 2005 UWMP. 56 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility Table 11 Projected Balance of Water Demands and Supplies Multiple Dry Year Conditions (acre feet) Demands Otay WD Demand 54,844 56,389 57,935 59,480 61,025 Cross Border Demand Increase 0 38 38 38 38 Total Demand 54,844 56,427 57,973 59,5 [8 6[,063 Supplies Water Authority Supply 50,8048 51,143 51,943 52,624 53,168 Recycled Water Supply 4,040 4,684 5,430 6,294 7,297 Otay WD Groundwater Supply 0 600 600 600 600 Total Supply 54,844 56,427 57,973 59,518 61,063 Supply Surplus/(Deficit)0 0 0 0 0 DIy year demands assumed to generate a 7%increase in demand over normal conditions for each year in addition to new demand growth. In evaluating the availability ofsufficient water supply,the Cross Border Project development proponents will be required to participate in the development ofalternative 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 20 IO.These water supply projects are in addition to those identified as sustainable supplies in the current Water Authority and Metropolitan 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 Rosarito Ocean Desalination Facility project,and the Rancho del Rey Groundwater Well project.The Water Authority and Metropolitan's next forecasts and supply 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 ofbalancing 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. 57 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility 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 ofthe Cross Border Project,along with existing and other planned development projects within the Otay WD service area. This WSA 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 ofthe Cross Border 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. 58 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility Source Documents City ofSan Diego,October 7,2010,Letter Request to Initiate the Preparation ofa Water Supply Assessment for the San Diego-Tijuana Cross Border Facility (City ofSan Diego Project No.16953)Compliance request letter received October 21,2010. City ofChula Vista,"Otay Ranch General Development Plan/Sub-regional Plan,The Otay Ranch Joint Planning Project,"October 1993 amended June 1996. County ofSan Diego,"East Otay Mesa Specific Plan Area,"adopted July 27,1994. Otay Water District,"2009 Water Resources Master Plan Update,"dated November,2010. MWH Americas,Inc.and Otay Water District,"Otay Water District 2005 Urban Water Management Plan,"December 2005 amended July 2007. 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. Metropolitan Water District ofSouthern California,"Regional Urban Water Management Plan,"November 2005. 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. Boyle Engineering Corporation,"Groundwater Treatment Feasibility Study Ranch del Ray Well Site,"September 1996. 59 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility Agreement for the Purchase ofTreated Water from the Otay Water Treatment Plant between the City ofSan Diego and the Otay Water District. Agreement between the San Diego County Water Authority and Otay Water District regarding lmplementation ofthe East County Regional Treated Water lmprovement 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. 60 Otay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility Appendix A San Diego -Tijuana Cross Border Facility Vicinity Map J iI (, (je'r.- 'f' , I@f1-/ \ . _'i~.1~·~ .'L..a MC'(]a f~.:d 1 ]11 \lr-:Brown Field •'125'~" l -Mur>icip.aIAirport ~I;> )'r -+'F .II~~--~~l ~IIOt,,~M_Rd ~-®0Ia41~M@ARd'-o-~II ~~ lii OlaYIMesa,~-lL-I~1 II -ll J I _JELj,I•r'l)~L.J), Gtay Water District Water Supply Assessment Report San Diego -Tijuana Cross Border Facility Appendix B San Diego -Tijuana Cross Border Facility Development Plan SAN DIEGO/TIJUANA CROSS BORDER FACILITY LOT ARE:A E:XHIBIT 9-24-09 ®LOl'1 1.2 Ac ®LOl'2 1.4 Ac CD LOT 3~.'1 Ac CD 1.0741.4 Ac @ LOT B9.1 Ac ®L~~:'~~CD LOT W 1.0 ,\c ®1.0'[2U CD LOT 201.3 Ac 1.0 AI; CD LOr :~g CD Lor 81 1.3 Ac 1.0 i\C (J)la'j 27 (J)LOT 22 1.3 Ac 1.0 Ac ®LOT 26 ®Lor 23- :.3 Ac 1.0 Ac ®WI 25 ®LOT 241.5 Ac 1.2 Ac @ARAGp WIg 9.0 Ac CD LO'I'1;) L2 Ac CD LOT 121.0 Ac CD LOT 111.:3 Ac !Dr to 5.0 Ac !tI!1.,ii.wt~.'1~ "'~DI'.....nr.~~t~~Mt-TIll~ AReA TOTALS O~~~~ck~:rr ®HOTEL ([)INDUSTRlM... ®R£rAil. @ D~TENTTON.. SUBTOTAL c:::::JPUBHC S1RffTS TOTAL. 13.1 AC '7.'ItC 5.2 AC 0.8 AC .$6..1 AC 7.5 AC .63.8 AC LOrNa lA.'iOIJS£CROSSAR£A (Ae) "IlDUSI:'Il:o\l.',J_.-,----.",--------/2 .NlUS71i'fAI./.a IJ N:WJRtIL 1.2,~--~00ii------ii8-- /5 1illa.(l;1li".AL '.0 (ANDUS£GRIJSS~A(AC; HOrn '.J 2 - ..~-- -~ Otay Water District Board of D-rectors Meeting February 2,2011 ater Supply Assessme,nt Report for the San Di'ego-Tijuana Cross Border Facility S,B 6:10 Complianc,e 1>'- II ~."....? ......'i--~," ~."-,.-~~Background .r '~"~ Senate Bills 61,0 and 221 became e,ffective on :January 1, 2002"with the,primary intent to imp,rove the,link between _ water supply availability and Ilanldl uise decisions. 58 610 Water Supp,ly Assessmlent:(WS,A): .1 Requires water purveyor'to prepare a:Water Sullll!¥ Assessment report fa,r inclu!sion in land use agency CEQA documentation. 58 221 Water'Supply Verificationl:: •Doe,s not apply to the Cross Border project for it is ani industrial subdivision. Cross Bor'der project Water Suppl:y Assessment Report.1 Board approval require,d fo,r submittall of the WSA to the,City of San:Diego. 2 l.h',-e·'l.l"·.c::-.1 , ~-__~.~.:tlJ .,:-1'_~~,'_..... _/f:c.....-:--~-=----~~ er Project Description [J New International Business and ;frade land use. [J Approximately 63.18 acres. o Land Use: o Two 150 Room Hotels [J 8,50'0 Sq.Ft.Retail a Parking Garage Cl Cargo Faci'lity and Cross Bo,rder Terminal Facility (4.5,Mililion People per Year) [J Demand: [J 95 AFY Potab,lle D 11 AFY Recycled (11 % of demand) lJ Increase in Ratable Demand:35 AFY a ove current appro,vedland use _1&AC1I.-............ +M?..~c1_:lI:ltt.I~~........,_,....".,...::a-&.....",.,.,~'>Qr"""­ !-"a''''''lI'vI.n..fet_..tlOtml.1doodt<Jt..~.....,.;rl\AJ<.1<'forr~tur.\jIo,ytt,R,,(t...It"lot.c",tII1I,\",>dod\".IJ"wpi.)l~bhlrut",.""""lupn."tp.:ltl.""I>,b;,,,,",ClI''''\l''''WiI'''·~\O\l<I\C ....id"","1 '""'"TtI.=~nUIGl'QWUrrc...c ot...o;neortt-..r<Mt1t'P'm~"""t;t»2f15.:t...,......1 T"'''IfXI''I.Ig,Pllln(RP).llf'Idit ,II''formthliO»".kIpm.nlolthl.~'·,f''SlSUstllil'lM:.. CCtnm<.r11'l,e Jtr.lDIl9Y (XS).I "-rompor'l«ll o~t'lit Kll';/11'"4 trM IlIogI<:naI f<~N+Q _Vl1l1nt (IlHNAj pwC,"1em..~I...l.IlIII JJ~(SIl31$)1Ch.l~128,SMW:.of ZCXI8)In 4<):lItUl.1.'.fUl~tdllr....t.or'",,1boo UIoed to..'Wt.nt.IUIlll.~jo;m10<l,hoo ""JIO'"I'. Slll....t Gr"wlh IIlC..M.....Pr<:o,jfam ",.::''';llX>'t klc.~1 ...p.Wl .np<l....",n""1 (Jnt!wow,"n'->lI'" P)MlngIlvoll!';""Jtthl!r-nl<ln Thlttore,"'!>!'<omp"'~wrth.l-1.:.pp!k.'1:llDSL):ulos.:.oclrogul.1fJOrll;~;'~=~:::TP,~.1lI'ld~HN'"fromSB375ondfho Colli/em",Tr..,~o[ioncomm~.ionart" Ttw2Ofl{lRes:oOI'IJl:l~f~>1tOllkQJI-2,..,,':udJ""'"Mll'Iputtt;:mIOt:>lJurndlclXlnsaf" IIn<;f...1«1gflll;~l~emfulur'llllln"i~lin<;!'~nc;:......llltl"llp\>;ln"1N>edontilldo'Kti::lnatu.. B...wd 0/O"'1I<;u:",1..1)..11,.SNlOAG.....rr "",I,,,wd~~t""tt,.ror.......lfro",...d1)Un>d'lion..! C11)'C<lunc,1 Bcx.r<;for&Jp<><.,,,,,,'lndpl~nnrr'llc:orr"..\"",,n,"Jt''''1_W"ongU-.,1,>"oj.monlh'. TI>o1n1'ar""",OCX'".A""«>mmentocoll«llIddurlr''9,I>'''Am""'tin<)sNldI'~rn{~r-:ionl""",A"9'LI~O"1""p.'letcn Icrmulatirlg m.'eqicn',rTIOllilkely ""..Iopm_p.'lttemOll u..ne.l..uyu... lIl;;d'U""'U>"""k,ng...~..Iuc:>lJU",.jIl;I......SANO"G;I;;rrWOl1o,>tJd"''''ly''''Ultr.,lr~~,:",""r>nd"''''iCl'p<DI'''''''{OincO<pCl'tlf''lIrIYrm;ou,""co'''PP'y,nfr:r......J,on nfOIl1CI'arO'~:of;):l --...............:In. J ...~lMi'IIIo¥.........y.llllllIIIIOO.....1{aIO -_.~-~-:.~~~-""'..-.--'._""=.---..._--._,.,..__0:::::-__..~-_..--..•-'::.-:::-_...._......-'"'---:::;:---_..:~.--,-.._.~_.~_....':::7~_ .;.:;<;,;;..;o.-~f'l.-..::-::-:;_.....-1:1 -...........-..M __ .-_-_M.'_'.t .... --..~.'..."~""- Cross Bordler Pr10ject Water Sup,ply Assessment •The regional and loca wat'er supp,ly agenlcies acknowledge the chailleniges and'fully inltend to develop sufficient,reliable s'uppliies,t'o meet demands. •Water'suppliers recognize additional walt'er sup,plies ar'e necessary and p,ortfolios nieed to be re,assessed and redistrib,uted withl intent to serve existing and f'uture needs. 6 Cross Border Project Water Supply Assessment 7 It is believed that the Board has met the intent of 58 610 statute in that: 1)Land use agenc·es and water suppliers have demonstrated strong linkage. 2)The Cross Border Project Water Supply Assessment clearly docum:ents the curr1ent water supply situation. •The state of the current water supply situat·on is ~ documented in the WSA Report,with the intent that the water agencies plan to develop sufficient water supplies to meet demands., Cross Bo[(ler Project Water Supply Assessment: .....'0 •B,ase,d on existi'ng documentati'on,the WSA Rep,ort demlonstrates and documents thlat sufficient water -~supplies are planned fo,r alnd are intended to b,e, acquir~d. •lihe WS,A Rep,ort documents the plainned water supply projects alnd'the actions necessary to develop the suppllies. •Water supply for the Cross Border project and.for existing and future developments within the District for a 20-year planning horizon,undler nor'mal and in sinlgle and mul1tiple dry years are planned for and are intended to b,e made avai'lable. --I 8 -....--..-,..~___~,,"111 j If' Ot:ay Wa er District P'lannled Local Water Supply Projects •Rosarito O'cealn Desal!inatio,n Pr1oject'(24,000- 50,0'00 AFY) ... - ~I "-...... ....:~ 9 Source:Table 9 Cross Border Facility WSA Report (From Otay WD 2005 UWMP Update). ~- Description FY 2010 FY 2015 FY 2020 FY 2025 FY 2030 Demands /j-...L,f .... Otay WD Demand 49,812 57,033 65,229 72,854 82,405 Cross Border Demand Increase 0 35 35 35 35 ~~ '.}Total Demand 49,812 57,068 65,264 72,889 82,440-...,. Supplies I~Water Authority Supply 45,772 ~51,784 59,234 65,995 74,543'--, Recycled Water Supply , 4,040 4,684 5,430 6,294 7,297, Otay WD Groundwater Supply 0 600 I 600 600 600 Total Supply 49,812 57,068 65,264 72,889 ,82,440 ~~'PI:~ectedl Balance of Potable Water Supplies and Deman,ds, Normal Year Condlit:ions (,¥) Actual Demand vs.2005 UWMP 100000 80000 60000 40000 20000 o -------.----2005 UWMP -eJ Actual Demands--Projected Demands FY 2005 FY 2010 FY 2015 FY 2020 FY 2025 FY 2030 10 Fiscal Year .....'"~..r.'- Conc:lusi"on Y~f ~. •Water demand and supply for'ecasts are included in the planningl documents of ~Metrop,olitan,Water Authority,and the Otay Water District. • Actions necessary to develop the identified' water suppli'es are dlocumen,ted. Cross Border 58 610 WSA demonstrates,and docume,nts that suffic·'ent water suppli'es are planned for and!are intended to b,e available ~over the next 20 years. 11 .... - ·. ---'~'----' Staff Recomlmendati'on That the Board o,f Di'rectors approve the Senate Billl 61,0 Water Supp y Assessment Report dated December 2010 for the San Die,go-Tijuana Cross Border Fac'il'ity.. 12 Questions? Waiter Supp,ly Assessment Report for the l'San Diego-Tijuana Crioss Border Facility .~5B 610 Comp i'alnce 13 Quality Assurance Approval Sheet Subject:Approval of Water Supply Assessment Report (December 2010)for the San Diego-Tijuana Cross Border Facility Project No.:D0738-090062 Document Description:Staff Report for February 2,2011 Board Meeting Author: Date Bob Kennedy Printed Name QA Reviewer: Date Gary Silverman Printed Name Manager: -~rJ7#1r Ron Ripperger Printed Name Date The above signatures attest that the attached document has been reviewed and to the best of their ability the signers verify that it meets the District quality standard by clearly and concisely conveying the intended information;being grammatically correct and free of formatting and typographical errors;accurately presenting calculated values and numerical references;and being internally consistent,legible and uniform in its presentation style. AGENDA ITEM 9a STAFF REPORT MEETING DATE:February 2,2011TYPEMEETING:Regular Board SUBMITTED BY:Daniel Kayl)f- Associate Civil Engineer PROJECT:Various DIV.NO.ALL APPROVED BY: (Chief) APPROVED BY: (Asst GM) SUBJECT: Ron Ripperger ~ ~ngineering Manager Rod posada~~~ Chief,Engineering Manny Magan~~ Assistant Gener~~anager, Informational Item -First Improvement Program Report Engineering and Operations Quarter Fiscal Year 2011 Capital GENERAL MANAGER'S RECOMMENDATION: That the Otay Water District (District)Board of Directors (Board) accepts the First Quarter Fiscal Year 2011 Capital Improvement Program (CIP)Report for review and receives a summary via PowerPoint presentation. COMMITTEE ACTION: Please see Attachment A. PURPOSE: To update the Board about the status of all CIP project expenditures and to highlight significant issues,progress,and milestones on major projects. 2 FISCAL IMPACT: ANALYSIS: To keep up with growth and to meet our ratepayers'expectations to adequately deliver safer reliable r cost-effectiver and quality water r each year the District Staff prepares a six-year CIP Plan that identifies the District infrastructure needs.The CIP is comprised of four categories consisting of backbone capital facilities r replacement/renewal projects r developer's reimbursement projects r and capital purchases. The First Quarter Fiscal Year 2011 update is intended to provide a detailed analysis of progress in completing these projects within the allotted time and budget.Expenditures through the First Quarter totaled approximately $4.4 million.Approximately 16%of the Fiscal Year 2011 expenditure budget ~as spent. 'i~ None. STRATEGIC GOAL: The CIP supports the District's Mission statement r "To provide the best quality of water and wastewater service to the customers of the Otay Water District r in a professional r effective r and efficient mannerru and the District's Strategic Goal r in planning for infrastructure and supply to meet current and future potable water demands. LEGAL IMPACT: None. General Manager P:\CIP\CIP Quarterly Reports\2011\Ql\Staff Report\BD 02-02-11,Staff Report,First Quarter FY 2011 CIP Report,(RR-RP).doc RR/RP:jf Attachments:Attachment A -Committee Action Presentation <::1 I~I JEGT: Various ATTACHMENT A Informational Item First Quarter Fiscal Year 2011 Capital Improvement Program Report COMMITTEE ACTION: The Engineering,Operations,and Water Resources Committee reviewed this item at a Committee Meeting held on January 18,2011 and the following comments were made: •Staff provided a PowerPoint presentation to the Committee and indicated that expenditures through the First Quarter totaled approximately $4.4 million,which is about 16%of the District's Fiscal Year 2011 expenditure budget. •Staff indicated that the District's FY 2011 CIP budget consists of 82 projects that total $28.5 million and is divided into four categories: o Capital Facilities=$16.2 million o Replacement/Renewal=$10 million o Capital Purchases=$2.3 million o Developer Reimbursement=$0 million •The PowerPoint presentation included the following: o Total Life-to-Date Expenditures thru September 30,2010 o Maj or CIP Proj ects o CIP Projects in Construction o Consultant Contract Status of contract amounts,approve payments to date,change orders,dates when contracts were signed and the end date of contracts. o Construction Contract Status thru September 30,2010 of projects,contract amount,and percent of project completion o Expenditures •Staff stated that the 36-Inch Pipeline from FCF No.14 to Regulatory Site Project (P2009)is complete and in full operation. •It was indicated that the Otay Lakes Road 12-Inch Recycled Water Pipeline and Potable Utility Relocation Project (R2094 & P2496)is already tied into the District's recycled water system and will be operating soon.Staff noted that this project is in relation to the District's Recycled Water Retrofit Program that will help save approximately 300 acre- feet of potable water annually by converting potable irrigation accounts to use recycled water.Staff noted that the project's expenditures and impacts were minimized by collaborating with the City of Chula Vista who planned to expand the corridor along Otay Lakes Road.The Southwestern College,Bonita Vista High School,and several Homeowners Associations are all participating in the District's retrofit program . •The Committee inquired about the District's CIP budget process as to how funding sources (i.e.Capital Facilities, Replacement/Renewal,Capital Purchases,Developer Reimbursement)for ClP projects are determined and justified. Staff indicated that ClP projects and their funding sources are proposed by the Engineering Department and forwarded to the Chief of Finance,Legal Counsel,Assistant General Manager, General Manager,and Board for approval.Staff noted that the ClP Budget process adheres to the District's policies and procedures and is substantiated by a variety of documentations (general plans,environmental impact reports,studies,etc.), which all are available to the public for review. Following the discussion,the Committee supported staffs' recommendation and presentation to the full board as an informational item. The above signatures attest that the attached document has been reviewed and to the best of their ability the signers verify that it meets the District quality standard by clearly and concisely conveying the intended information; being grammatically correct and free of formatting and typographical errors;accurately presenting calculated values and numerical references;and being internally consistent,legible and uniform in its presentation style. CAPITAL IMP'ROVEMENT PROGRAM First Quarter Fis,cal Year 2011 (through September 30,2010) Background The approved CIP budget for Fiscal Year 2011 consists of 8,2 projects that total $28.S million.These projects are broken down into four categories: 1.Capital Facilities: 2.Replacement/Renewal: $16.2 million $10.0 million 3.Capital Purchases:$2.3 million 4.Developer Reimbursel11ent:$0.0 million Overall expenditures through the First Quarter Fiscal Year 2011 totaled $4.4 million which is 160/0 of the Fiscal Year 2011 budget. 2 Fiscal Year 2011 Report (through Septernber 30,2010) %% CIP FY 2011 FY 2011 FY 2011 Total Life-to-Total Life-to- CAT Description Budget Expenditures Budget Date Budget Life-to-Date Date Expenditures BudgetSpentSpent 1 Capital Facilities $16,181,000 $3,038,000 19%$180,949,000 $43,220,000 24% 2 Replacement! Renewal $10,006,000 $1,119,000 11%$44,053,000 $15,574,000 35% 3 Capital Purchases $2,249,000 $267,000 12%$13,450,000 $6,023,000 45% 4 Developer Reimbursement $12,000 $0 0%$7,882,000 $1,000 0% Total: $28,448,000 $4,424,000 16%$246,334,000 $64,818,000 26% 3 Major CIP ,Projects LEMON GROVE P::\ORAFTINGDEPARTt.lENT.....~'CIPE.dtiblt.'ClP en,FY11·,-..tCI,10-13-10rnxd N.T.S. o PLANNING -9 •DESIGN-10oCONSTRUCTION -5 •COMPLETED IN USE -0oDistrictBoundary ®® ©@ ®®@ ® CD MAJOR CIP PROJECTS P2434 -Rancho Del Rey Groundwater Well P2451 -Rosarito DesalinationFacility Conveyance and Disinfection System P2466-Regional Training Facility P2467 -San Diego Formation GroundwaterFeasibility Study P2473 -711-1 Pump Station Improvements P2481 -Middle Sweetwater RiverBasin Groundwater Well P2502 &P2503 --803-1 and 850-2 Pump Station Modifications P2511 -North DistrictI South District Interconnection System R2094--Potable Irrigation Meter to Recycle Water Conversions P2399 -PL-30",980 Reservoirs to Hunte Parkway P2488 &P2489 --Helix WD &Otay WD Agency Interconnections P2505 &P2506 --657-1 &657-2 ReservoirCoating R2048 --Otay Mesa Distribution Pipelines and Conversions R2058 --Airway Rd Recycled Water Pipeline R2077 --Alta Rd Recycled WaterPipeline R2087 --Wueste Rd Recycled Water Pipeline R2091 --944-1R Recycled WaterPump Station Upgrade R2096 --Ralph W.Chapman Water Reclamation Facility - Upgrades and Modifications S2019,S2020&S2022 --Sanitary Sewer Replacement P2009 -PL-36"SDCWA Otay FCF No.14 to OWD Regulatory Site P2440 -SR905Utility Relocations P2490 &P2492 --1296-1 &2 Reservoir Coating P2496 -Otay Lakes Road UtilityRelocations S2021 -JamachaRd8-lnch Sanitary SewerReplacement 4 CIP Projects in Construction CIP Projects in Construction Ap,proximately 5 miles o,f 36-inch pipeline for potable water from Otay's FCF No.14 to the Regulatory Site. A construction contract was awarded to Cel Contracting (Cel)on June 3,2009.Project is complete. Schedule: D 36-lncll PipeHne From FCF No.14 to Regulatory Site PrWff: Key Conlponent: Cost:The FY 2011 p,roject budget is $2.2 nlillion,of which $2.1 m.illion,or 94%has been spent.The life-to-date p,roject budget is $21 million,of which $19 million,or 910/0,has been spent. Significant Issues:None. Highlights:Installation o,f the 36-inch pipe is co,mp,lete with only pipeline bacteria testing and minor pavement remaining. The pavement and striping are conlplete. 6 CIP Pro·ects in Construction 7 CIP Projects in Construction o 129'6-1&2 Reservoirs Coating Projects Key Component:Interior and exterior coatings on the 1296-1 &.2 Reservoirs. Schedule:A construction contract was awarded to West Coast Industrial Coating,Inc",on February 3,2010.Project is ap,proximately 55%complete.Project co,mpletion is anticipated for February 20'11. Cost:The combined FY 2.011 project budgets for CIPs P2490 and P2492 are $680,000,of which $206,000,or 30.3%was spent. The life-to-date project budgets are $900,000,of which $418,000,or 460/0,have been spent. Significant Issues:None. Highlights:None. 8 C:IP Projects in Construction CIP Projects in Construction 01 Potable Irrigation Meters to Recycled Water Conversions Key Component:Installation o,f a 12-inch recycled pipeline along Otay Lakes Rd. and converting existing potable water irrigation systems to use recycl,ed water. Schedule:Construction started in May 2010.Southland Paving completed the 12-inch recycled water main in front of Bonita Vista High School,along with the roadwaly improvements along Otay Lakes Rd.(approx.750 LF of the proposed 4,2.00 LF). They are currently working on the p,otable Pressure Reducing Station and will continue with the recycled pipeline installation.Pro~ect comp,letion is anticip,ated for February 2011. Cost:A Reimbursemlent A.green1ent,executed between the City of Chula,Vista (City)and the District dated March 2,2010, required the District to submit a deposit to the City for the estimated constructio,n costs of $1,10'0,000 (which includes a 10%contingency). The combined FY 2011 project budgets for CIPs R2094 and P2496 are $695,000,of which $79,000,or 11.4%was spent. The life-to-date project budgets are $3,350,000,of which $1,397,000,or 420/0,have been spent. Sig11 ificant Issues:None. 10 Highlights:None. Consultant Contract Status (through September 30,2010) urigmal Total RevlseCi Approved % % Date of CIP Contract Change Contract Payment To Change Project Signed End Date of Consultant No.Project Title Amount Orders Amount Date Orders Complete Contract Contract PLANNING RANCHO DEL REY GROUNDWATER WELL AECOM P2434 DEVELOPMENT $1,561,625.0C $-$1,561,625.0C $623,268.90 0.0%39.9%1/20/2010 12/31/2010 NORTH-SOUTH SERVICES AREAINTERTIE MWH AMERICAS INC.P2010 STUDY $119,505.0C $11,500.00 $131,005.0 $118,314.41 9,6%90.3%10/22/2009 6/3012011 SALVADOR LOPEZ-CORDOVA P2451 DESALINATION PROJECT $45,000.OC $-$45,000.OC $0.0% 0.0%9/15/2010 8/14/2011 SANITARY SEWERCCTV INSPECTION TRAN CONSULTING ENGINEERS S1201 AND CONDITION ASSESSMENT $560,025.00 $-$560,025.0[$238,146.92 0.0%42.5%1/20/2010 6/30/2013 DESIGN CALIFORNIA CENTER FOR SUSTAINABLE ENERGY Varies SOLAR POWER FEASIBILITY STUDY $34,400.00 $-$34,400.00 $2,700.00 0.0%7.8%5/18/2010 6/30/2011 CPM PARTNERS Varies AS-NEEDED SCHEDULING SERVICES $175,000.OC $-$175,000.OC $53,255.00 0.0%30.4%5/18/2010 6/30/2012 AS-NEEDED TRAFFIC ENGINEERING DARNELL &ASSOCIATES Varies SERVICES FOR FY2010 AND FY2011 $175,000.00 $-$175,000.00 $128,517.5C 0.0%73.4%1/20/2010 6/30/2011 ENGINEERING PARTNERS INC,THE Varies ELECTRICAL SERVICES $100,000.00 $-$100,000.00 $85,930.00 0.0%85.9%3/19/2007 6/30/2011 AS-NEEDED ELECTRICAL DESIGN ENGINEERING PARTNERS INC,THE Varies SERVICES $100,000.00 $-$100,000.OC $22,765.00 0.0%22.8%10/7/2009 6130/2011 HDR Varies TEMPORARY LABOR SERVICES $150,000.00 $35,000.00 $185,000.00 $156,275.0C 23.3%84.5%6/30/2010 6/30/2011 P2502, HVAC ENGINEERING INC P2503 HVAC SERVICES FOR 850-2 PS &803-1 PS $19,421.00 $-$19,421.00 $0.0%0.0%9/17/2010 12/31/2011 LEE &RO INC P2009 DESIGN OF 36-INCH PIPELINE $580,183.00 $61,629.00 $641,812.00 $624,320.35 10.6%97.3%9/11/2008 12/31/2010 AS-NEEDED ENGINEERING DESIGN LEE &RO INC Varies SERVICES $175,000.00 $-$175,000.00 $0,0%0.0%6/30/2010 6/30/2012 AS-NEEDED GEOTECHNICAL MTGL INC.Varies CONSULTING SERVICES $175,000.00 $-$175,000.00 $6,030.00 0.0%3.4%6/23/2010 6/30/2012 R2096, R2095, MWH AMERICAS INC.S2018 RWCWRF UPGRADE PROJECT $458,813.00 $-$458,813.00 $116,473.0 0.0%25.4%10/14/2009 6/3012011 PBS&J Varies HYDRAULIC MODELING SERVICES $45,000.00 $-$45,000.00 $19,560.55 0.0%43.5%11/20/2009 6130/2011 9/29/2010 PHOTO GEODETIC CORPORATION P2399 SURVEYING SERVICES $3,425.6 $-$3,425.6~$3,150.00 0.0%92.0%8/24/2010 COMPLETE REPROHAUS Varies AS-NEEDED REPROGRAPHIC SERVICES $20,000.OC $-$20,000.00 $7,056.15 0.0%35.3%2/16/2010 12/31/2011 SCHIFF &ASSOCIATES Varies PROFESSIONAL CORROSION SERVICES $250,000.OC $-$250,000.00 $134,169.62 0.0%53.7%11/20/2009 6130/2011 SOUTHERN CALIFORNIA SOIL Varies AS-NEEDED GEOTECHNICAL SERVICES $175,000.OC $11,761.37 $186,761.37 $145,643.50 6.7%78.0%10/7/2009 6130/2011 8/11/2010 SUPERIOR TANK SOLUTIONS P2491 803-2 Reservoir Visual Inspection $250.00 $-$250.00 $250.00 0.0%100.0%7/15/2010 COMPLETE 11 Consultant Contract Status continued) Original Total Revised Approved % % Date of CIP Contract Change Contract Payment To Change Project Signed End Date of Consultant No.ProjectTitle Amount Orders Amount Date Orders Complete Contract Contract CONSTRUCTION SERVICES 1485-1 PUMPSTATION -TREE 9/8/2010 BRADLEY CONSULTING GROUP P2172 CONSULTING SERVICE $500.0C $$500.0C $500.00 0.0%100.0%9/7/2010 COMPLETE MWH CONSTRUCTORS INC Varies TEMPORARY LABORSERVICES $150,000.OC $130,000.00 $280,000.0 $260,925.00 867%93.2%1/5/2009 12/31/2010 8/25/2010 PROWEST APPRAISALS P2172 APPRAISAL SERVICES $2,827.5C $-$2,827.50 $2,600.0(0.0%92.0%8/12/2010 COMPLETE RBF CONSULTING P2009 36-INCH PIPELINE $1.088,785.0C $46,995.00 $1,135,780.00 $1,129,658.7,4.3%99.5%1/28/2008 3/1/2011 R2058,CONSTRUCTION MANAGEMENT R2077,SERVICES FOR THE OTAY MESA RBF CONSULTING R2087 RECYCLED WATER SUPPLY LINK $708,560.0C $708,560.00 $12,730.0C 0.0%1.8%3/24/2010 12/31/2011 S2019, RBF CONSULTING S2021 CONSTRUCTION MANGAGEMENT $5,000.OC $-$5,000.00 $4,640.0(0.0%92.8%8/5/2010 10/6/2010 AS-NEEDED CONSTRUCTION VALLEY CONSTRUCTION MANAGEMENT AND INSPECTION MANAGEMENT Varies SERVICES $175,000.OC $175,000.00 $65,040.0C 0.0%37.2%3/17/2010 6/30/2012 ENVIRONMENTAL A.D.HINSHAW Varies CONSULTING SERVICES FOR JWA's CEQA $34,6252"$-$34,625.2"$5,084.5€0,0%14.7%3/25/2010 6/30/2012 BRG CONSULTING INC P2143 1296-3 RESERVOIR ENV SVCS $125,OOO.OC $-$125,000.0($112,502.54 0.0%90.0%4/11/2006 12/31/2010 FORENSIC ENTOMOLOGY SERVICES P2494 SCIENCE ADVISOR REVIEW $4,000.0($-$4,000.OC $0.0% 0.0%9/30/2010 6/30/2011 ICF INTERNATIONAL (aka JONES &SAN MIGUEL HABITAT MANAGEMENT STOKES ASSOCIATES)P1253 AREA $987,807.00 $-$987,807.0C $520,342.45 0.0%52.7%2/3/2009 12/31/2011 R2058/ ICF INTERNATIONAL (aka JONES &R2077/OTAY MESA RECYCLED WATER SUPPLY STOKES ASSOCIATES)R2087 LINK PIPELINES $213,087.00 $9,115.00 $222,202.0C $213,077.4 4.3%95.9%5/1/2009 6/30/2011 AS-NEEDED ENVIRONMENTAL ICF INTERNATIONAL Varies CONSULTING SERVICES $375,000.00 $-$375,000.OC $5,343.5 0.0%1.4%9/9/2010 6/30/2013 DR.MARYANNE HAWKE P2494 SCIENCE ADVISOR REVIEW $4,350.00 $-$4,350.0C $0.0% 0.0%9/9/2010 6/30/2011 10/12/2010 PHOTO GEODETIC CORPORATION R2096 AERIAL MAPPING $2,400.00 $-$2,400.0C $2,400.00 0.0%100.0%9/15/2010 COMPLETE RAHN CONSERVATION CONSULTING P2494 SCIENCE ADVISOR REVIEW $4,000.0($-$4,000.OC $0.0%0.0%9/15/2010 6/30/2011 RECON P1253 PREPARATION OF THE SUBAREAPLAN $270,853.0C $-$270,853.0C $115,296.5-0.0%42.6%3/28/2008 3/28/2011 TECHNOLOGY ASSOCIATES Varies CONSULTING SERVICES FOR JWA's NCCP $34,625.2 $$34,625.25 $18,892.11 0.0%54.6%4/5/2010 6/30/2012 WATER RESOURCES MIDDLE SWEETWATER RIVER BASIN AECOM P2481 GROUNDWATER WELL PILOT PROJECT $1,065,037.OC $$1,065,037.00 $251,013.1 0.0%23.6%5/21/2009 5/31/2011 BI-NATIONAL DESALINATION FEASIBILITY CAMP DRESSER &McKEE INC P2451 STUDY $94,552.0C $18,005.00 $112,557.00 $98,209.8 19.0%87.3%3/19/2008 6/30/2011 WASTEWATER RECLAMATION FACILITY CITY OF CHULA VISTA R2093 STUDY $150,000.OC $-$150,000.00 $0.0% 0.0%9/24/2009 2/28/2011 MICHAEL R.WELCH P2481 ENGINEERING PLANNING SVCS.$40,000.OC $-$40,000.00 $15,660.0(0.0%39.2%3/25/2009 6/30/2011 PUBLIC SERVICES RECYCLED WATER PLAN CHECKING, AEGIS ENGINEERING RETROFIT,AND INSPECTION SERVICES MANAGEMENT Varies FOR DEVELOPER PROJECTS $300,000.OC $-$300,000.0($105,990.0C 0.0%35,3%1/20/2010 6/30/2012 TOTALS:$10,758,656.6 $324,005.37 $11,082,662.0C $5,425,731.8E 3.0%12 Construction Contract Status (through September 30,2010) ORIGINAL AL AL • CONTRACT CH~'GE CO~TAACT EARNED TO OFCHAfilGE PROdECT TITLE CONTRACTOR AMOUNT 9RDERS AMOUNT DATE ORDERS· Jamacha Rd. 36-lnch Pipeline &CCL Contracting $16,189,243 ($307,266)$15,881,977 $14,282,403 -1.90%90%Complete12-lnch Pipeline Replacement 1296-1 &1296-2 West Coast FebruaryReservoirCoating&$690,000 $0 $690,000 $376,731 0.00%55% Upgrades Industrial 2011 Jamacha Rd.8-lnch A.B.Hashmi $91,320 ($2,226)$89,094 $89,094 -2.44%100%CompleteSewerReplacement TOTALS:$16,970,563 ($309,492)$16,661,071 $14,748,228 -1.82% 13 Expenditures (through September 30,2010) ($000) FISCAL YEAR-TO-DATE,09/30/10 UFE·TO·DATE Project FY 2011 Expense to CIP No.Description Mana!ler Bud!let Expenses Balance Bud!let %Budget Balance Comments CAPITAL FACILITYPROJECTS P2009 PL -36-lnch.SDCWAOtav FCF No.14to Reoulatorv Site Rioceroer S 2.200 $2.075 S 125 94%$21000 S 1984 Pro'ectin construction. P2033 PL·16-lnch.1296 Zone.MelodvRoad·Camco/Presilla Riaceroer ---0%1826 1821 Develooerdriven. P2038 PL -12-lnch 978 Zone.Hidden Mesa Road Kav 130 30 100 23%2378 196 Construction comnlete Part ofP2009 . P2083 PS -870-2 PumpStation Replacement 128.000 GPMl Ripoerqer 50 -50 0%12581 12,001 Moved to Phase III. P2143 Res -1296-3Reservoir 2 MG Kav 5 41 36 820%3540 125 Construction complete, P2172 PS -1485-1 Pume Station Reolacement RiDoeroer 5 10 '5 200'/~_~Z5 6 Proiectacceoted;finalizino last easement. ~1!!..1_Res -850-4 Reservoir 2.2 MG Kav 5 7 (2 140%3410 11 Proiectcomplete. P2267 36~inch i;;a'inPumoouts and AirNacuum Ventilation Installations VasQuez 0%435 201 Nothina to ucdate. P2318 'PL -20-lnch 657 Zone Summit Cross-Tieand 36-lnch Main Connections Cameron 100 2 98 2%600 528 Pro'ect in oreliminarv desiqn. P2357 PS -657-1/850-1 Pumo Station Demolition Silverman 50 3 47 6%300 297 In deskln'to be combined with P2471. P2370 Res -DorchesterReservoir and Puma Station Demolition Silverman 67 67 0%150 137 In desim,.to be combined with P2471. Rosarito Desai projectprecludes the need forthis projecthence no expenditures are planned for FY- P2391 PS -Perdue WTP Pump Station(10 000 GPM\Silverman 5 14 91 280%11900 11861 11. P2399 PL -3D-Inch 980 Zone 980 Reservoirs toHunte Parkway Silverman 200 25 175 13%3.600 839 In desion. P2431 Res -980-4 Reservoir 5 MG Ripperqer 5 -5 0%5900 5900 Moved to Phase III. The Board authorized execution of a professional services agreement for engineering and developmentof the Rancho del Rey Groundwater monitoring and production well.Well drilling activities have been completed,Working with AECOM to address extra costs due to Otay reducing or limiting the work hours and days responding to concerns about vibration and noise P2434 Rancho Del Rev GroundwaterWell Develooment Silverman 1,000 114 886 11%4250 2870 from homeowners in the area. FY-11 budgetrevised.Project on hold until third P2451 Rosarito Desalination FacilityConvevanceand Disinfection SyStem Kennedy 1000 88 912 9%30000 29.437 uarterFY-ll. This project budget has been expended.may be P2466 ReClional Trainino Facility Coburn-Boyd ~4 10 14 42%252 6 increased to coversomeminorfuture expenses. This project is jointlyfunded by SWAand Otay. The SDCWA awarded a LISA grant to SWA to fund up to 50%of the costof the effort.Monitoring wells in the Otay Riverhave been completed by USGS.Data gathering on well information Within the San Diego Formation continues.Otay River participation agreement between SWA and Otay P2467 San Die<lo Formation Groundwater Feasibililv Study Peaslev 600 .600 0%1800 1041 has been approved. P2471 850/657 PRS at La Presa Puma Station Silverman 240 4 236 2%310 259 In desilln. This projectis for water supply feasibility study efforts.MWH completedthe preparation a brief stUdy inclUding cost estimates forsupplyfrom the SWA Perdue WTP and the North District to South _,P24~2_Water Suoolv Feasibilitv Studies Peaslev 30 -30 0%175 149 District Interconnection. P2473 PS':711~1 Pump Station Imp<ovement Cameron 200 13 18 7%500 441 PDRcomclete. P2474 Fuel Storaoe Covers and Containment Cameron 50 8 42 16%120 91 PDRcomolete. P2475 PumD Station Fire Hvdrantlnstallations Cameron 45 10 35 22%55 2 Pro'ect complete. 14 Expenditures (Continued) FISCAL YEAR-TO-DATE,09/30/10 L1FE-TO-DATE Project FY 2011 Expense to CIP No.DescriDlion Manager Budget Expenses Balance Budaet %Budaet Balance Comments CAPITAL FACILITY PROJECTS Groundwater developmentplanning efforts continue on the Middle Sweetwater RiverBasin Groundwater Weil Pilot Project including preparation ofa draft community outreach plan and analysIs of imported supplied intothe basin. Meetings with SWA have occurred with staff agreement on the quantity ofImported water contributed to the groundwater supply.The Rosarito Desai project precludes the need forthis projecthencelittle expenditures are planned for in P2481 Middle Sweetwater River Basin Groundwater Weil Feasibilitv Peaslev 50 10 40 20%1820 1,437 the remainino FY-11, P2488 Del Rio Road Helix and Otav AO€ncv Interconnection Kav ...120 10 110 8%150 79 Desi n comDlete:oro'ectout to bid, P2489 Gillisoie Drive Heli~'.:'Q.9J~A!l.en~l!.lnterconnect,ion Kav 135 11 124 8%150 1JO Design_com.elete.i..ll.roLect_out.to_bid: On schedule,In process of selecting candidate P2497 Solar Power FeasibilitvStudy Kennedy 150 6 144 4%250 215 site forconstruction, P2502 803-1 Puma Station Modifications Silverman 50 13 37 26%200 187 PDRupdated;HVAC desi'.!n inprocess, P2503 850-2 Puma Station Modifications Silverman 150 18 132 12%650 632 PDRupdated'HVAC desi~n in orocess, P2510 Onerations Yard Imorovements Kav 25 -25 0%,370 370 PDR comnlete. P2511 North District -South District Interconnection SYStem Silverman 800 66 734 8%37300 37234 Proiect in areliminarv desian, R2034 RecRes -860-1 Reservoir 4 MG Kav 200 -200 0%3800 3,776 Pro;ect on hold, R2048 RecPL -Otav Mesa Distribution Pioelines and Conversions Rinoeraer 250 61 189 24%2200 2066 In desian, Reimbursement Agreement will consume most of R2058 RecPL -16-lnch,860 Zone,Airwav Road -Otav Mesa/Alta Kennedy 1,000 77 923 8%3500 2.482 this budQet. ReimbursementAgreement wiil consume most of R2077 RecPL -24-lnch.860 Zone.Alta Road·Alta Gate/AirwaY Kennedy 1,750 57 1693 3%45..00 3.734 this budoet Easement acquisition budget for the City of Chula R2087 RecPL-24-lnch 927Zone,Wueste Road -Olympic/Ota'WTP Kenned'3,378 71 3,307 2%7000 6,2.1.2 Vista and the CityofSan Dieoo, R2088 RecPL-30-lnch 860Zone.County Jail -Roil Reservoir/860-1 Reseryoir Kennedv 240 4 236 2%3500 3.438 .Revise Budoetto $20K forFY-11. RecPS -927-1 Pump Station Upgrade (10,000 GPMjand System 3653 160%desian comolete.R2091 Enhancements Riooeroer 1.250 48 1,202 4%-3950 R2092 Dis ..450-1 ReservoirDisinfection Facilliv Rilloeraer 2 116 18 -800%742 3 In warrantv. The CityofChula Vista City Counsel and Otay Board of Directors have approved the MBR participation agreement to focus on the treatment facilityand related requirements,The City of Chula Vista awarded a consulting contract to RMC 10 accomplish the scope ofwork is weil underway. A draft report has been prepared for review and R2093 'MBRCity of Chula Vista Feasibility Study Peasley 120 75 45 63%210 90 comment. R2094 Potable l"iQation Meters to Recvcled WaterConversions Charles 500 73 427 15%3100 1.808 On budQet. Total Capital Facility Pro;ects Total:16,181 3038 13143 19%180,949 137,729 REPLACEMENT/RENEWAL PRO.IECTS Currently $136K on the JanuaryBoard report; P2366 APCD EnQine Reolacements and Retrofits Rahders 442 -442 0%3,213 1,453 awaitinQ approval. P2382 Safety and Security Im3rovements Munoz 102 72 30 Z-1%1635 250 Plan to sp_end !befull amount. P2416 SR-125 Util~Y Relocations Kennedv 50 -50 0%963 49 GCR collectino from sax, P2440 1-905 Utilif Relocations Silverman 100 31 69 31%1600 47 90%construction com"lete, P2453 SR-l1 Utility Relocations Kay 50 1 49 2%155 151 CalTrans driven, P2456 Air and Vacuum Valve Upgrades Acuna 450 185 265 41%2.722 485 On track. P245S AMRManual Meter ReDlacement Keeran 1500 215 1285 14%10448 6.217 On track. f-i:'2~F_Res..:,62~:1 Reservoir_Co_Vl~r.Rel!.laqell)E!'.!t Kennedv 5 1 4 20%450 422 On budoet and on schedule, P2484 LaroeWaterMeter Replacement Proaram Keeran 100 1.;2 ,§8 12.Xo 535 402 On track, 15 Expenditures (Continued) FISCAL YEAR-TO-DATE.09/30/10 L1FE·TO·DATE Project FY 2011 Expense to CIP No.DescriDtion Manaoer BudDet EXDenses Balance BudDet%BudDet Balance Comments REPLACEMENT/RENEWALPROJECTS P2485 SCADA Communication SyStem and Software Replacement Stalker 350 26 324 7%1325 1018 Plan to snend the full amount. P2486 Asset ManaoementPlan ConditionAssessmentand Data Amuisition Stevens 600 49 551 8%1.150 866 Plan to soend the full amount. P2490 1296-1 Reservoir Interior/ExteriorCoatino Kay 240 10 230 4%350 280 Project under construction. P2491 850-3 Reservoir Exterior Coati""Kay 10 1 9 10%300 298 Pro'ecttobe done in FY-12. P2492 1296-2 Reservoir Interior/ExteriorCoatino Kay 440 196 244 45%550'202 Pro"ect in construction. P2493 624-2 Reservoir Interior Coatino Kay 5 5 0%950 949 Proiect to be done in FY-12. P2494 Multiole Soecies Conservation Plan Coburn-Boyd 170 41 129 24%830 248 This budoetwill besoentthis fiscal vear. P2495 San MiQuel Habitat Manaqement/MitioationArea Coburn-Boyd 250 35 215 14%1725 1413 This budoetwillbesoentthis fiscal "ear. P2496 OtavLakes Road Utilitv Relocations Kav 195 6 189 3%250 145 Pro'ect under construction. P2504 ReQulatory Site Access Road and Pi~eline Relocation Ripperoer 200 -200 0%6(;0 600 Develooerdriven. P2505 657-1 Reservoir Interior/Exterior CoatiM Cameron 325 4 321 1%3i5 371 Desi<m com~etej pro~c.t.out.to.bid. P2506 657.:?J3~!'rIIgk..l~t"rlgrL~xlelior Cgatin~Cameron 325 :}322 1.r.o..;rr5 372 DesiQD comolete;oro'ectout to bid. r..J :'2,5.0!_E,~sf_Palom~!:...SJ[i!.et.LJtili!~J~elo.c~ti9n ~am~ron 20 ~18 10%500 498 CalTrans driven. P2508 Pinellne Cathodic Protection Replacement Prooram Kennedv 50 ..50 0%.150 150 Sele.ctiQn forcathodic as needed renuired to start. P2509 R.J.Donovan Prison Water Meter Uomade Riooef!ler .-0%60 60 In the orocess of reolacino the meter. The project schedule haschanged sothat notall of R2096 RWCWRF..UPDrades and Modifications Coburn-Bow 1200 54 1146 5%2500 2206 the p,o'ectedbudoetwill be soentthis fiscal ear. The expenditures are typically billed by SVSD and S2012 SVSD Outfall and RSD Reolacementand OM Reimbursement Peasley 642 1 641 0%4392 3798 loaid within the fourth Cluarler of the fiscal 'lear. S2019 Avocado Boulevard 8-lnch Sewer Main Imorovement Cameron 1515 53 1462 3%1730 1.533 Design 90%compiete. S2020 Calavo Dri\1e 8-lnch Sewer Main Reolacement Cameron 360 4 356 1%420 381 Desion 90%comolete. S2021 Jamacha Road 8-lnch SewerMain R6Jilacement Kav 40 105 165 263%160 8 Proiect comolete. S2022 Hidden Mesa Drive 8-lnch SewerMain Rehabilitation Cameron 120 4 116 3%150 1}i.~sion 90%comolete. ~_0_2.L Calavo Drive Sewer Main Uiilltv Reiocation Cameron 50 1 49 2o/~65 55 County ofSan Diello driven. _SJ.Q.2,L GlI~Road-Sewer!"iain Replacement Cameron 75 2 73 3%3250 3248 Tobeassessed in the SewerMasterPlan, S2025 WieQilorst Wav Sewer Main Replacement Cameron 25 5 20 20%.175 170 County Pro'ect. Total Replacement/Renewal Proiects Total:10.006 1.119 8,887 11%44.053 28,479 CAPITALPURCHASE PROJECTS.••_.._..~------.$25K encumbered,awaiting vehicle delivery; $1OOK on the January Board report;awaitin9 P2282 Vehicle Capital Purchases Rahders 540 59 481 11%4945 2882 appr,?vaJ. P2285 Office E~uipment and Furniture Capital Purchases Dobrawa ---0%.481 42 Nothinoto uodate. P2286 Field EQuipment Capital Purchases Rahders 201 25 176 12%1.527 764 Plan to soend the full amountbv vear end. P2443 Information Technolooy Mobile Services Jenkins 250 19 231 8%1!i,52 685 Plan to scend the fuJi amountbv vear end. P2461 Records Manaoement SYStem Uporade Stevens 150 -Eo 0%406 201 Plan to spend the full amountby year end.---f1.4§LInformation Technolooy Network and Hardware Jenkins 300 69 231 23%1.921 1 116 'Plan to sllend the f~JllIrrJ9lJn~b~ar.end._ P2470 "AOOiicaiion SYStems Develoomentand Inleoration Stevens 408 95 313 23%2218 1.~3~-t;-la~to.s!!end.the.t_u!.l..am.o.u.!!!..~ren~ P2501 Telecommunications Eouioment Uoorade Jenkins 400 ..400 0%400 400{1~n.,to_s~.g.•t!!.e_~JI amountby year end. Total Capital Purchase Projects Total:2.249 267 1.982 12%13.450 7,427 16 Expenditures (Continued) FISCAL YEAR-TO-DATE 09/30/10 L1FE-TO-DATE Project FY 2011 Expenseto CIP No.Description Manager Budget Expenses Balance Budaet%Budoet Balance Comments DEVELOPER REIMBURSEMENTPROJECTS P2104 PL -12-lncl!...?.1J.Zone,La_M~Q.@.Road -BircJ!l8Qf~..M()L1rt!~.in Charles ---0%8:1:1 8:13 Nothina to update. _P2,10L ~L.:..12-lrtc~J.1J.~()rte.L..Roc~.M()umain_RO~,d .:.L.._M,edi..~SK1.~,5 charie.- -0%722 722 Nothino to uodate. PL -10"to 12"Oversize,1296 Zone,PB Road -Rolling Hills Hydro PS/PB P2325 Bndy Charles 1 -1 0%50 50 Awaitin",Develooer's reouest forreimbursement. P2402 PL-12-lnch 624 Zone La Media Road -Villaoe 7/0tay Vallev Charles --0%444 444 Nothina to uodate. P2403 PL-12-lnch 624 Zone Heritoo6 Road -Ol'moic/OlavValle"C.barles --0%925 925 Nothina to uodate. R2028 RecPL -8-lnch 680 Zone Heritage Road -Santa Victoria/Ot'!y_Valiev Charles --0%600 600 Nothina to update. R2042 RecPL-8-lnch 927 Zone.Rock Mountain Road -SR-125/EastLake Charles -0%140 140 Nothinn to uPdate. R2047 RecPL -12..Jnch,680 Zone.La Media Road -Birch/Rock Mountain Charles --0%450 450 NothinQ to update. R2082 RecPL-24-lnch,680 Zone Olvmpic Parkway -Villaae 2/Hentaoe Charles 5 -5 0%1747 1747 Awaitino Develooer's reouest forreimbursement. R2083 RecPL -20-lnch 680 Zone.Heritaoe Road -Villaoe 2/0h>moic Charles 5 -5 0%400 400 Awaitina Developer's reouest for reimbursement. R2084 RecPL-20-lnch.680 Zone Villaoe 2 -Heritaae/La Media Charles 1 -1 0%971 970 Awaitino Develooer's reouest for reimbursement. R2085 RecPL -20-lnch.680 Zone,La Media -State/Olvmpic Charles - - -0%600 600 Nothino to uodate. Total Develo~er Reimbursement Projects Total:12 12 0%7,882 7,881 GRANDTOTAL $28.448 $4424 $24024 16'1'.$246,334 $181,516 17 Quality Assurance Approval Sheet Subject:Informational Item -First Quarter Fiscal Year 2011 Capital Improvement Program Report Project No.:Various Document Description:Staff Report for February 2,2011 Board Meeting Author: QA Reviewer: Manager: Signature Daniel Kay Printed Name ~ Gary Silverman Printed Name Ron Ripperger Printed Name 11/01J/ Date '!'O(r{ Date IIIOI}) Date The above signatures attest that the attached document has been reviewed and to the best of their ability the signers verify that it meets the District quality standard by clearly and concisely conveying the intended information; being grammatically correct and free of formatting and typographical errors;accurately presenting calculated values and numerical references;and being internally consistent,legible and uniform in its presentation style. STAFF REPORT AGENDA ITEM 10a TYPE MEETING:Regular Board Meeting SUBMITTED BY:Mark Watton, General Manager MEETING DATE: W.O.lG.F.NO: February 2,2011 DIV.NO. SUBJECT:Board of Directors 2011 Calendar of Meetings GENERAL MANAGER'S RECOMMENDATION: At the request of the Board,the attached Board of Director's meeting calendar for 2011 is being presented for discussion. PURPOSE: This staff report is being presented to provide the Board the opportunity to review the 2011 Board of Director's meeting calendars and amend the schedule as needed. COMMITTEE ACTION: N/A ANALYSIS: The Board requested that this item be presented at each meeting so they may have an opportunity to review the Board meeting calendar schedule and amend it as needed. STRATEGIC GOAL: N/A FISCAL IMPACT: None. LEGAL IMPACT: None. General Manager Attachments:Calendar of Meetings for 2011 G:IUscrDataIDistSecIWINWORDISTAFRPTSIBoardMeeting Calendar2-2·1 l.doc Regular Board Meetings: January 5,2011 February 2,2011 March 2,2011 April 6,2011 May 4,2011 June 1,2011 July 6,2011 August 3,2011 September 7,2011 October 5,2011 November 2,2011 December 7,2011 Board Workshops: Board of Directors,Workshops and Committee Meetings 2011 Special Board or Committee Meetings (3 rd Wednesday of Each Month or as Noted) January 19,2011 February 16,2011 March 16,2011 April 20,2011 May 18,2011 June 15,2011 July 20,2011 August 17,2011 September 21,2011 October 19,2011 November 16,2011 December 21,2011 Budget Workshop,TBD Special Board Meeting/Board Retreat Workshop,TBD G:\UserData\DistSec\WINWORD\STAFRPTS\Board Meeting Calendar Attach A for 20II 2-2-Il.doc Page 1 of 1 AGENDAITEM11a STAFF REPORT TYPE MEETING:Regular Board MEETING DATE:February 2,2011 SUBMITTED BY: Mark Watton General Manager W.O./G.F. NO: N/A DIV. NO. N/A SUBJECT:General Manager's Report GENERAL MANAGER: Special District Risk Management Authority (SDRMA): The Special District Risk Management Authority (SDRMA)Board of Directors has approved a longevity distribution to recognize and reward members for their loyalty and commitment to the SDRMA programs.The District received two checks from SDRMA in the following amounts: o $3,361.00 for five years of participation In the Workers' Compensation Program;and o $8,109.00 for seven years of participation in the Property and Liability Program. Fiscal Year 2012 Six-Year CIP Project Expenditure Projections: There are two fundamental reasons why District staff is in the process of revising the current Fiscal Year and upcoming Fiscal Year 2012 Six-Year Capital Improvement Program (CIP)Project Expenditure Projections.They are as follows: o The ongoing recession and the projected economic outlook are both driving very little development activity within the District. o The City of San Diego's inability to assure a reliable recycled water supply in quantities above the current South Bay Water Reclamation Plant (SBWRP)supply limit and the uncertainty about their long-term commitment on an acceptable recycled water wholesale rate. These challenges clearly point to the need to delay CIP Expenditure projections for the Fiscal Year 2012 CIP.Every CIP project is being evaluated to adjust priorities based upon need, timing,and other challenges.The proposed Fiscal Year 2012 Six- Year CIP Expenditure Projections are expected to be lower because of delaying various projects.This will result in less pressure on water and sewer rates increases from District operations. ADMINISTRATIVE SERVICES,INFORMATION TECHNOLOGY AND FINANCE: ADMINISTRATIVE SERVICES: Human Resources: •Annual Employee Recognition Luncheon -The District held the Annual Employee Recognition Luncheon at Steele Canyon Golf Course on Wednesday,January 26th at 1:00 p.m. •Training Tracking Program -Human Resources is working with IT to rollout the new Training Tracking Module on SharePoint.The Training Tracking Module is a new tool for managers and supervisors to use to keep track of required training for their employees and will allow viewing of upcoming training classes for their employees and keep abreast of who did or did not attend the required training. User Training will be scheduled the 2nd week of February for users and it is anticipated that the system will "Go Live"by February 14th • •New Hires -There were no new hires in the month of January. Water Conservation and School Education: •Water Conservation Rebate Status -MET continues to administer its So Cal Water Smart (residential)rebate and the So Cal Water Smart (commercial)rebate programs.In addition,interest remains high for the District's Cash-for- Water Smart Plants and Water Smart Irrigation Upgrade programs. •Reimbursement for Water Conservation Activity -In total,the District has received $5,737 in reimbursement for residential and large landscape surveys conducted through November and recently invoiced MET for $56,000 to reimburse the District for a portion of its costs associated with its Cash-for-Water Smart Plants program.In addition,the District submitted paperwork to MET requesting another $22,000 in funding for reimbursement for costs associated with its Water Smart Irrigation Upgrade program. 2 •School Education Update -In January,two 5th grade classes involving 75 students and 20 adults from Rancho San Diego Elementary visited the Garden and participated in school Garden tours.To date,10 tours have been completed and another 16 are scheduled to be completed before the end of March 2011. •Water Waste Reporting -In January (through the 21st),there was only 1 report of water waste,either phoned in or reported through the District's website.The water waste report listing the activity is attached. Purchasing and Facilities: •Purchase Orders -There were 115 purchase orders processed in January 2011 for a total of $7,446,230.06. o Please note the following purchase orders processed: 1)Aecom Technical Services,for the Disinfection System Project in the amount of $3,910,297.00. 2)SDRMA,for Health Administration Services In the amount of $2,800,000.00. INFORMATION TECHNOLOGY AND STRATEGIC PLANNING: •InfoSend Bill Pay -Emails have been sent for ACH customers to sign-up with the new InfoSend Bill Pay system.Each time an email is sent,the number of sign-ups goes up significantly.An out-dial campaign is set up to call,and a mailer will go in bills for customers who still have not signed up. •Bill Calculators -The bill calculators are available on the web so customers can see how the new rates will affect their water and sewer bills. •Meter Change Out -We have streamlined our meter change out process in Operations.Now,we scan new meter numbers and have fully automated the inventory process. •System Upgrades We have begun the planning process for upgrade to Microsoft Exchange 2010.Project should kick-off in early February.We ordered 25 new workstations for the next phase of the Windows 7 -Office 2007 upgrade. •GIS Common Goals -The GIS Manager met recently with the IS Director of Sweetwater Authority,GIS Manager of the City of Chula Vista,and IT Director and GIS Manager of the Port Authority to discuss GIS common goals and to promote the regional joint efforts to reach the common goals.The discussion included the ortho photo requisition and other 3 further GIS-oriented meet regularly to efforts jointly. projects. exchange The attendees also agreed to information and promote GIS •Customer Information on GIS Web Application -GIS will create a new view to bring the customer information such as customer name,address,billing number and parcel acreage along with the parcel boundary together,per request by the Water Conservation department.This project will help Water Conservation staff to easily access the customer information through visualization.More GIS customizations for water budget are under discussion. FINANCE: •Bond Market -There have been numerous recent articles in the investment markets regarding the financial instability of municipalities.These negative articles may be the reason for record withdrawals from municipal bond mutual funds (Bond Buyer newspaper,January 21,2011 issue).The Bond Buyer portrays this as "Headline Risk"meaning that the perception of risk is all that is needed to change the markets and affect the desirability of certain segments of the bond market.These negative articles,while incorrect and speculative,may have also had some bearing on the large number of transactions in Otay's Bonds.On January 25th Otay's bonds were the most heavily traded of all California municipal debt when a larger investor sold a block of Otay bonds to a broker which were then sold in a large number of smaller denomination.It is worth noting that many buyers were found quickly to purchase the District's bonds, indicating that the Otay name is recognizable and/or there is a strong demand at the retail level.This activity does not reflect poorly or positively on the District but is essentially a non-event as it relates to the District's credit rating. •W-2's -On January 13th,the District issued and distributed to employees the 2010 W-2's.Copies of the W-2's will be sent electronically to the Social Security Administration before the March 31st deadline.All related tax forms (941, DE6 and DE7)will be filed before January 31st •This marks the close of another successful annual payroll processing cycle. •Credit Card Payments by Phone -Under the General Manager's authority,the contract with Electronic Data Systems (EDS)is being modified so that the District will pay a relatively small processing fee,which will result in the elimination of 4 a large processing fee previously paid by our customers.The savings are possible because of a discount that has recently become available and can only be obtained if the District pays the processing costs.The District's net cost is approximately $6,000 annually,while the customer savings lS approximately $64,000 annually.(See next paragraph for savings to the district) •Alternative Payment Types -The total alternative payments made in December was 26,113.Alternative payment types include ACH,web payments,online banking,credit card by phone,and payment through retailers such as Wal-Mart.These methods of payments are much less expensive to the District than the standard payment via check.The new electronic bill and presentment site went live on June 21,2010.As of January 21,2010,16,429 customers had registered for this new online service,with 7,664 choosing to stop receiving paper bills,another significant cost savings to the District. The financial reporting for December 31,2010 is as follows: •For the six months ending December 31,2010,there are total revenues of $36,552,233 and total expenses of $37,800,607. The expenses exceeded revenues by $1,248,374.Potable and reclaimed water sales were 6%below budget. The financial reporting for investments for December 31,2010 is as follows: •The market value shown in the Portfolio Summary and Investment Portfolio Details as of December 31,2010 $104,832,126.32 with an average yield to maturity of The total earnings year-to-date are $565,686.41. in the total .847%. ENGINEERING AND WATER OPERATIONS: Engineering: •Otay Lakes Road Widening:Southland Paving completed the installation of the recycled pipeline.Only punchlist items and walkthrough's remain.The District and the City partnered up with a 12-Inch Recycled Water Pipeline and Road Widening Project on Otay Lakes Road.The recycled pipeline starts at Telegraph Canyon Road and ends in front of Bonita Vista High School.The project also includes relocations of a few potable water facilities.The project is on budget and on schedule.This project is scheduled to be completed January 29,2011.(R2094,P2496) 5 •Rancho del Rey Groundwater Well Development:On January 5, 2011,the Board approved proceeding to Phase 2 of this project,the design and construction of a reverse osmosis wellhead treatment facility.The project was advertised on January 6 and by the January 14 th deadline,20 Letters of Interest were received from design firms by January 14. Design proposals are expected on February 10 and the selection process is timed to allow Board consideration of an award at the April meeting.The design is anticipated to be complete by the end of calendar 2011,with construction complete by the end of calendar 2012.(P2434) •1296-1 &2 Reservoirs Coating:West Coast Industrial Coating (West Coast)has completed coating the 1296-1 Reservoir.The reservoir is now in service.West Coast is coating the interior of the 1296-2 Reservoir and removing the exterior coating.(P2492) •For the month of December 2010,the District sold 8 meters (59 EDUs)generating $474,220 in revenue.Projection for this period was 12 meters (26 EDUs)with budgeted revenue of $217,086.Projected revenue from June 1,2010 through June 30,2011 is $2,605,036;against a budget of $1,302,518 as of December 30,2010.Revenue collected to date is $1,819,277 which is 40%above projection. •For the month of December,staff reviewed 1 potential easement encroachment and will be gathering all the necessary information prior to informing customer of the removal of the encroachment.The above is a part of an on-going program of easement monitoring. •Approximately 1,487 linear feet of both CIP and developer project pipeline was installed in December 2010.The Inspection Division performed quality control for these pipelines. The following table summarizes Engineering's project purchases and Change Orders issued during the period of December 17,2010 through January 14,2011 that were within staff signatory authority: 6 Date Action Amount Contractor/ProjectConsultant Ralph W.Chapman Water 12/15/10 C.O.#2 $38,747.00 MWH Recycling Facility Upgrade Project (R2096) Michael D.Avocado Sanitary Sewer 01/04/11 P.O.$17,000.00 Keagy Real Replacement Project Estate (S2019) Check NPDES Permit for 01/12/11 Request $1,755.00 SWRCB Jamacha Pipeline (P2009) 944-1R Recycled Water Mayer Pump Station Upgrades 01/18/11 P.O.$2,168.35 and SystemReprographicsEnhancementsProject (R2091) Water qperations: San Diego County Water Authority (CWA)Total Treated Water Shutdown: •The section of CWA's Pipeline 4 that feeds our connections was placed out of service on Tuesday,January 4,through January 14,2011.Staff operated the Lower Otay Pump Station during this time. •The North District was able to remain in a normal mode of operation for the duration of this shutdown due to the new 36-inch Jamacha Pipeline being in service.This is significant as CWA total treated water shutdowns used to have major impacts on how the North system was operated and prepared for during shutdowns. •Total number of potable water meters is 48,214. •In December 2010,Potable water purchases were 1,931.3 AF, which was 19.2%less than the budgeted amount for the month of December.The year-to-date potable purchases are 10.7% less than budget and 27.9%less than the CWA allocation. Below is the chart showing cumulative purchases vs.budget and the allocation. 7 Potable Water Purchases 25,000 20,000 15,000 10,000 5.000 .....Purchases ___Budget -'-Allocation Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 •Recycled water consumption for the month of December is as follows: Total consumption was 195.1 acre-feet or 63,553,072 gallons and the average daily consumption was 2,050,099 gallons per day. Total number of recycled water meters is 688. Total recycled water consumption to date for FY 2011 is 2,533.6 acre-feet. •Wastewater flows for the month of December were as follows: • • • • • Total basin flow,gallons per day:2,048,000. Spring Valley Sanitation District Flow to Metro,gallons per day:679,000. Total Otay flow,gallons per day:1,369,000. Flow Processed at the Ralph W.Chapman Water Recycling Facility,gallons per day:660,000. Flow to Metro from Otay Water District,gallons per day: 720,065. •For the month of December there were no new wastewater connections;total EDUs is 6,080. 8 Water Waste Report Broken Sprinklers High Usage Leak Overspray Runoff due to Over- watering Washing Down Paved Surfaces Washing Vehicles without bucket & hose nozzle Watering after lOam and before 6pm Total April 2009 May 2009 June 2009 July 2009 Auqust 2009 September 2009 October 2009 November 2009 December 2009 January 2010 February 2010 March 2010 April 2010 May 2010 June 2010 July 2010 Auqust 2010 September 2010 October 2010 November 2010 December 2010 January 2011 Total 6 4 4 1 2 17 7 23 9 6 1 1 47 13 35 5 8 10 1 7 79 6 24 9 17 4 4 6 70 11 15 7 8 1 1 9 52 6 17 5 7 2 1 3 41 4 6 2 6 1 1 20 1 6 7 11 1 26 1 15 1 4 1 22 1 2 1 4 1 9 1 2 3 6 2 1 5 2 10 1 4 1 5 11 1 3 4 3 1 1 13 2 2 1 2 1 1 9 4 2 6 3 6 4 13 2 1 5 2 3 1 14 1 1 1 1 4 9 2 11 2 3 5 1 1 71 2 178 60 108 23 9 35 486 OTAY WATER DISTRICT COMPARATIVE BUDGET SUMMARY FOR SIX MONTHS ENDED DECEMBER 31,2010 Exhibit A Annual YTD YTD YTD Budget Actual Budget Variance Var% REVENUES: Water Sales $36,560,100 $17,186,173 $19,934,200 $(2,748,027) (13.8%) Energy Charges 1,854,600 921,843 998,300 (76,457)(7.7%) System Charges 9,532,200 4,699,928 4,692,200 7,728 0.2% Penalties 747,600 384,569 421,000 (36,431 )(8.7%) MWD &CWA Fixed Charges 7,639,400 3,399,252 3,396,000 3,252 0.1% Total Water Sales 56,333,900 26,591,765 29,441,700 (2,849,935)(9.7%) Reclamation Sales 7,620,600 4,092,956 4,649,300 (556,344)(12.0%) Sewer Charges 2,270,500 1,226,960 1,236,750 (9,790)(0.8%) Meter Fees 50,300 33,436 25,200 8,236 32.7% Capacity Fee Revenues 1,095,300 455,013 477,500 (22,487)(4.7%) Betterment Fees for Maintenance 657,400 273,188 303,700 (30,512)(10.0%) Non-Operating Revenues 1,948,300 924,928 974,050 (49,122)(5.0%) Tax Revenues 3,843,900 1,427,915 1,393,600 34,315 2.5% Interest 296,200 87,271 133,100 (45,829)(34.4%) General Fund Draw Down 1,657,500 828,800 828,800 0.0% Transfer from OPEB 1,220,000 610,000 610,000 0.0% Total Revenues $76,993,900 $36,552,233 $40,073,700 $(3,521,467)(8.8%) EXPENSES: Potable Water Purchases $26,238,700 $13,214,240 $14,902,900 $1,688,660 11.3% Recycled Water Purchases 1,179,900 867,430 698,000 (169,430)(24.3%) CWA-Infrastructure Access Charge 1,550,700 692,088 692,400 312 0.0% CWA-Customer Service Charge 1,315,200 587,940 588,000 60 0.0% CWA-Emergency Storage Charge 2,875,200 1,290,348 1,290,600 252 0.0% MWD-Capacity Res Charge 665,100 332,676 332,400 (276)(0.1%) MWD-Readiness to Serve Charge 1,232,400 615,154 616,200 1,046 0.2% Subtotal Water Purchases 35,057,200 17,599,875 19,120,500 1,520,625 8.0% Power Charges 2,520,700 1,168,649 1,319,500 150,851 11.4% Payroll &Related Costs 16,749,400 8,547,053 8,498,255 (48,798)(0.6%) Material &Maintenance 3,769,500 1,699,487 1,677,750 (21,738)(1.3%) Administrative Expenses 5,130,400 1,928,562 2,155,615 227,052 10.5% Legal Fees 451,200 199,179 225,600 26,421 11.7% Expansion Reserve 2,775,000 1,387,500 1,387,500 0.0% Betterment Reserve 1,435,000 717,500 717,500 0.0% Replacement Reserve 6,965,000 3,482,500 3,482,500 0.0% Transfer to Sewer General Fund 390,500 195,300 195,300 0.0% Transfer to General Fund Reserve 1,750,000 875,000 875,000 0.0% Total Expenses $76,993,900 $37,800,607 $39,655,020 $1,854,413 4.7% EXCESS REVENUES(EXPENSE)$$(1,248,374)$418,681 $(1,667,055) F:lMORPT/FS2011-1210 1/24/2011 12:12 PM OTAY WATER DISTRICT INVESTMENT PORTFOLIO REVIEW DECEMBER 31,2010 INVESTMENT OVERVIEW &MARKET STATUS: The federal funds rate has remained constant now for over 24-months.On December 16,2008,at the Federal Reserve Board's regular scheduled meeting,the federal funds rate was lowered from 1.00%to "a target range ofbetween Zero and 0.25%"in response to the nation's ongoing financial crisis,as well as banking industry pressure to ease credit and stimulate the economy.This marked the ninth reduction in a row since September 18,2007,when the rate was 5.25%.There have been no further changes made to the federal funds rate at the Federal Reserve Board's subsequent regular scheduled meetings,the most recent ofwhich was held on December 14,2010. They went on to say:"The Committee continues to anticipate that economic conditions are likely to warrant exceptionally low levels ofthe fede raIfunds rate for an extended period." Despite the large drop in available interest rates,the District's overall effective rate of return at December 31st was 0.85%,which was a decrease of 14 basis points (0.14%)from the prior month.At the same time the LAIF return on deposits has dropped slightly over the last several months,reaching an average effective yield of 0.46%for the month of December 2010.Based on our success at maintaining a competitive rate ofreturn on our portfolio during this extended period of interest rate declines,no changes in investment strategy are being considered at this time. In accordance with the District's Investment Policy,all District funds continue to be managed based on the objectives,in priority order,of safety,liquidity,and return on investment. PORTFOLIO COMPLIANCE:December 31,2010 8.01: 8.02: 8.02: 8.03: 8.04: 8.05: 8.06: 8.07: 8.08: 12.0: Investment Treasury Securities Local Agency Investment Fund (Operations) Local Agency Investment Fund (Bonds) Federal Agency Issues Certificates of Deposit Short-Term Commercial Notes Medium-Term Commercial Debt Money Market Mutual Funds San Diego County Pool Maximum Single Financial Institution State Limit 100% $40 Million 100% 100% 30% 25% 30% 20% 100% 100% Otar Limit 100% $40 Million 100% 100% 15% 15% 15% 15% 100% 50% Otar Actual o $18.38 Million 3.86% 59.56% 1.99% o o o 16.19% 0.85% Target:Meet or Exceed 100%of lAlF III 1.80..c::1.60QIE1.40UiQI1.20>.E 1.00r::0 0.80r::...0.60:JQi 0.40a: 0.20 0.00 ISIQlr FYIO _LAlF 0.90 _Olay 1.62 C Difference 0.72 2ndQlr FYIO 0.61 1.52 0.91 3rd Qtr FYIO 0.56 1.35 0.79 4thQlr FYIO 0.56 1.08 0.52 Performance Measure F-12 Return on Investment July FYII Aug FYII Sep FYII ISIQlr FYII 0.53 0.51 0.50 0.51 1.14 1.12 1.13 1.13 0.61 0.61 0.63 0.62 Month OctFYll Nov FYII Dec FYII 2ndQlr FYII 0.48 0.45 0.46 0.47 0.91 0.99 0.85 0.92 0.43 0.54 0.39 0.45 I .LAIF .Olay DDiHerence I Otay Water District Investment Portfolio:12/31/10 $62,372,000 _--------- 59.56 %~/~~ -------------._--_....: $2,971,764 2.84% $39,380,812 37.60% o Banks (Passbook/Checking/CD)IPools (LAIF &County)o Agencies &Corporate Notes OTAY Portfolio Management Portfolio Summary December 31,2010 Investments Federal Agency Issues-Callable Certificates of Deposit -Bank Local Agency Investment Fund (LAIF) San Diego County Pool Par Market Book %of Days to YTM YTM Value Value Value Portfolio Term Maturity 360 Equiv.365 Equiv. 62,372,000.00 62,382,555.92 62,370,836.93 60.07 853 712 1.016 1.030 2,079,108.00 2,079,108.00 2,079,108.00 2.00 379 47 1.399 1.419 22,422,040.15 22,454,805.99 22,422,040.15 21.59 1 1 0.456 0.462 16,958,771.51 17,023,000.00 16,958,771.51 16.33 1 1 0.677 0.686 103,831,919.66 103,939,469.91 103,830,756.59 100.00%521 429 0.847 0.859 Investments Cash (not included in vield calculations) Total Cash and Investments 892,656.41 104,724,576.07 892,656.41 104,832,126.32 892,656.41 104,723,413.00 521 429 0.113 0.847 0.115 0.859 -~~~_.__._._----~~---.._.._----~--~-~~-~~--~-~---_._---------~~~ Total Earnings December 31 Month_~~~~_Fiscal Year To Date Current Year 74,133.49 565,686.41 Average Daily Balance 102,742,255.85 107,045,023.22 Effective Rate of Return 0.85%1.64% I hereby certify that the investments contained in this report are made in accordance with the District Investment Policy Number 27 adopted by the Board of Directors on September 6,2006.The market value information provided by Interactive Data Corporation.The investments provide sufficient liquidity to meet the cash flow requirements of the District for the next six months of expenditures. ..~:;Z~::~ .-----.-/~-:;;>-"~'~~~.~ Reporting period 12101/2010-12131/2010 Run Date:01/16/2011 -11:32 Portfolio aTAY AP PM (PRF PMlI 7.3.0 Report Ver.7.3.2 OTAY Portfolio Management Page 1 Portfolio Details -Investments December 31,2010 Average Purchase Stated YTM Daysto Maturity CUSIP Investment#Issuer Balance Date ParValue Market Value Book Value Rate S&P 360 Maturity Date Corporate Notes Subtotal and Average 903,387.60 Federal Agency Issues-Callable 31331JZV8 2164 Federal Farm Credit Bank 09/03/2010 2,000,000.00 1,999,220.00 2,000,000.00 0.950 AM 0.937 853 05/03/2013 31331JM75 2170 Federal Farm Credit Bank 10/12/2010 2,000,000.00 1,994,320.00 2,000,000.00 0.900 0.888 832 04/12/2013 3133XXRW9 2128 Federal Home Loan Bank 03/29/2010 2,000,000.00 2,004,800.00 2,000,000.00 1.250 AM 1.233 545 06/29/2012 3133XYNSO 2145 Federal Home Loan Bank 06/10/2010 2,000,000.00 2,007,880.00 2,000,000.00 1.280 AM 1.262 709 12110/2012 3133XYSH9 2147 Federal Home Loan Bank 06/21/2010 2,000,000.00 2,008,140.00 2,000,000.00 1.125 AM 1.110 629 09/21/2012 313370P77 2162 Federal Home Loan Bank 08/25/2010 2,000,000.00 1,999,580.00 2,000,000.00 0.850 AM 0.838 786 02/25/2013 313370UP1 2165 Federal Home Loan Bank 09/13/2010 2,000,000.00 2,000,020.00 2,000,000.00 0.875 AM 0.863 802 03/13/2013 313371LKO 2173 Federal Home Loan Bank 11/16/2010 2,000,000.00 1,990,800.00 2,000,000.00 0.700 AM 0.690 685 11/16/2012 313371MR4 2174 Federal Home Loan Bank 11/22/2010 2,000,000.00 1,980,360.00 2,000,000.00 0.700 AM 0.690 872 OS/22/2013 313371RA6 2175 Federal Home Loan Bank 12/07/2010 2,000,000.00 1,991,280.00 2,000,000.00 0.700 AM 0.690 706 12/07/2012 313371 U20 2176 Federal Home Loan Bank 12/03/2010 2,000,000.00 1,988,400.00 2,000,000.00 1.000 AM 0.986 884 06/03/2013 3137EACK3 2146 Federal Home Loan Mortgage OS/28/2010 2,000,000.00 2,018,020.00 1,999,302.49 1.147 AM 1.154 573 07/27/2012 3137EACK3A 2148 Federal Home Loan Mortgage OS/27/2010 1,030,000.00 1,039,280.30 1,030,000.00 1.125 AM 1.109 573 07/27/2012 3137EACK3B 2149 Federal Home Loan Mortgage OS/27/2010 2,707,000.00 2,731,390.07 2,707,000.00 1.125 AM 1.109 573 07/27/2012 3134G1KZ6 2151 Federal Home Loan Mortgage 07/20/2010 2,000,000.00 2,000,500.00 2,000,000.00 1.000 AM 0.986 566 07/20/2012 3134G1MD3 2153 Federal Home Loan Mortgage 07/22/2010 2,000,000.00 2,005,880.00 2,000,000.00 1.100 AM 1.085 202 07/22/2011 3134G1PK4 2158 Federal Home Loan Mortgage 08/11/2010 2,000,000.00 2,005,120.00 2,000,000.00 1.000 AM 0.986 772 02/11/2013 3134G1TU8 2167 Federal Home Loan Mortgage 09/28/2010 2,000,000.00 2,001,100.00 2,000,000.00 0.800 0.789 636 09/28/2012 3134G1UR3 2169 Federal Home Loan Mortgage 09/28/2010 2,000,000.00 1,999,500.00 2,000,000.00 0.900 0.888 817 03/28/2013 3134G1C69 2177 Federal Home Loan Mortgage 12/20/2010 2,000,000.00 1,991,100.00 2,000,000.00 0.850 AM 0.838 901 06/20/2013 3134G1G32 2179 Federal Home Loan Mortgage 12/28/2010 2,000,000.00 1,996,020.00 2,000,000.00 1.000 AM 0.986 817 03/28/2013 3136FJR45 2118 Federal National Mortage Assoc 01/25/2010 2,000,000.00 2,000,800.00 2,000,000.00 1.250 AAA 1.233 755 01/25/2013 3136FMFRO 2127 Federal National Mortage Assoc 04/05/2010 2,000,000.00 2,005,340.00 2,000,000.00 1.500 AAA 1.479 643 10/05/2012 3136FMJF2 2129 Federal National Mortage Assoc 04/14/2010 2,000,000.00 2,000,540.00 2,000,000.00 1.250 AAA 1.233 499 05/14/2012 3136FMPB4 2132 Federal National Mortage Assoc 04/29/2010 2,000,000.00 2,006,040.00 2,000,000.00 1.480 AAA 1.460 667 10/29/2012 3136FMRH9 2136 Federal National Mortage Assoc 04/29/2010 2,000,000.00 2,007,260.00 2,000,000.00 1.550 1.529 667 10/29/2012 3136FMX82 2154 Federal National Mortage Assoc 07/26/2010 2,000,000.00 2,000,780.00 2,000,000.00 1.000 AM 0.986 664 10/26/2012 3136FM4N1 2157 Federal National Mortage Assoc 08/11/2010 2,000,000.00 2,001,300.00 2,000,000.00 1.000 AM 0.986 772 02/11/2013 3136FPHU4 2168 Federal National Mortage Assoc 09/21/2010 2,000,000.00 1,999,580.00 2,000,000.00 0.875 AAA 0.863 810 03/21/2013 3136FPQG5 2171 Federal National Mortage Assoc 10/26/2010 635,000.00 631,145.55 635,000.00 0.850 AM 0.837 937 07/26/2013 3136FPSK4 2172 Federal National Mortage Assoc 10/29/2010 2,000,000.00 1,986,920.00 1,999,534.44 0.675 AAA 0.676 849 04/29/2013 3136FPL47 2178 Federal National Mortage Assoc 12/27/2010 2,000,000.00 1,990,140.00 2,000,000.00 1.000 AAA 0.986 908 06/27/2013--------- Subtotal and Average 57,209,521.52 62,372,000.00 62,382,555.92 62,370,836.93 1.016 712 Portfolio OTAY AP Run Date:01/16/2011-11:32 PM (PRF_PM2)7.3.0 Report Ver.73.2 OlAY Portfolio Management Portfolio Details -Investments December 31,2010 Page 2 Average Purchase Stated YTM Daysto Maturity CUSIP Investment#Issuer Balance Date ParValue Market Value BookValue Rate S&P 360 Maturity Date Certificates ofDeposit -Bank 2050003183-4 2121 California Bank &Trust 01/22/2010 79,108.00 79,108.00 79,108.00 1.380 1.380 386 01/22/2012 1006200563-2 2126 Neighborhood National Bank 02/04/2010 2,000,000.00 2,000,000.00 2,000,00000 1.400 1.400 34 02/0412011--------- Subtotal and Average 2,337,172.52 2,079,108.00 2,079,108.00 2,079,108.00 1.399 47 Local Agency Investment Fund (LAIF) LAIF 9001 STATE OF CALIFORNIA 0710112004 18,380,578.92 18,407,438.88 18,380,578.92 0.462 0.456 LAIF BABS 2010 9012 STATE OF CALIFORNIA 04/21/2010 4,041,461.23 4,047,367.11 4,041,461.23 0.462 0.456--------- Subtotal and Average 24,109,136.92 22,422,040.15 22,454,805.99 22,422,040.15 0.456 San Diego County Pool SD COUNTY POOL 9007 San Diego County 07101/2004 16,958,771.51 17,023,000.00 16,958,771.51 0.686 0.677--------- Subtotal and Average 16,958,771.51 16,958,771.51 17,023,000.00 16,958,771.51 0.677 Total and Average 102,742,255.85 103,831,919.66 103,939,469.91 103,830,756.59 0.847 429 Run Date:01/16/2011 -11:32 Portfolio OTAY AP PM (PRF_PM2)730 DTAY Portfolio Management Page 3 Portfolio Details -Cash December 31,2010 Average Purchase Stated YTM Daysto CUSIP Investment#Issuer Balance Date ParValue Market Value Book Value Rate S&P 360 Maturity Union Bank UNION MONEY 9002 STATE OF CALIFORNIA 07/01/2004 10,062.02 10,062.02 10,062.02 0.005 0.005 PETTY CASH 9003 STATE OF CALIFORNIA 07/01/2004 2,950.00 2,95000 2,950.00 0.000 UNION OPERATING 9004 STATE OF CALIFORNIA 07/01/2004 853,499.47 853,499.47 853,499.47 0.120 0.118 PAYROLL 9005 STATE OF CALIFORNIA 0710112004 24,977.26 24,977.26 24,977.26 0.000 RESERVE-10 COPS 9010 STATE OF CALIFORNIA 04/20/2010 690.76 690.76 690.76 0.001 0.001 RESERVE-10 BABS 9011 STATE OF CALIFORNIA 04/20/2010 425.01 425.01 425.01 0.001 0.001 UBNA-2010 BOND 9013 STATE OF CALIFORNIA 04/20/2010 51.89 51.89 51.89 0.147 0.145 Average Balance 0.00 Total Cash and Investments 102,742,255.85 104,724,576.07 104,832,126.32 104,723,413.00 0.847 429 Run Date:01/16/2011 -11:32 Portfolio OTAY AP PM (PRF_PM2)7.3.0 OTAY Activity Report Sorted By Issuer July 1,2010 -December 31,2010 CUSIP Investment#Issuer Percent ofPortfolio ParValue Beginning Balance Current Transaction Rate Date Purchases or Deposits ParValue Redemptions or Withdrawals Ending Balance Issuer:Berkshire Hathaway Fin Corporate Notes 084664AF8 2094 Berkshire Hathaway Fin 4.200 1211512010 000 2,000,000.00 Subtotal and Balance 2,000,000.00 0.00 2,000,000.00 0.00 Issuer Subtotal 0.000%2,000,000.00 0.00 2,000,000.00 0.00 Issuer:STATE OF CALIFORNIA Union Bank UNION MONEY 9002 STATE OF CALIFORNIA 0.005 107,650,567.44 107,650,515.41 PETTY CASH 9003 STATE OF CALIFORNIA 150.00 0.00 UNION OPERATING 9004 STATE OF CALIFORNIA 0.120 3,828,169.41 4,019,381.93 PAYROLL 9005 STATE OF CALIFORNIA 1,120,925.04 1,120,925.04 UBNA-2010 BOND 9013 STATE OF CALIFORNIA 0.147 10,000,000.00 10,000,000.00 Subtotal and Balance 1,083,666.90 122,599,811.89 122,790,822.38 892,656.41 Local Agency Investment Fund (LAIF) LAIF 9001 STATE OF CALIFORNIA 0.462 50,225,790.49 50,350,161.28 LAIF BABS 2010 9012 STATE OF CALIFORNIA 0.462 41,605.29 12,000,144.06 Subtotal and Balance 34,504,949.71 50,267,395.78 62,350,305.34 22,422,040.15 Issuer Subtotal 22.263%35,588,616.61 172,867,207.67 185,141,127.72 23,314,696.56 Issuer:California Bank &Trust Certificates ofDeposit -Bank Subtotal and Balance 79,108.00 79,108.00 IssuerSubtotal 0.076%79,108.00 0.00 0.00 79,108.00 Issuer:Federal Farm Credit Bank Federal Agency Issues-Callable 31331GZ36 2155 Federal Farm Credit Bank 1.550 0711612010 4,000,000.00 0.00 Portfolio OTAY AP Run Date:01/16/2011 -11:42 DA (PRF_DA)72.0 Report Ver.7.3.2 OTAY Activity Report Page 2 July 1,2010 -December 31,2010 Par Value Par Value Percent Beginning Current Transaction Purchases or Redemptions or Ending CUSIP Investment#Issuer of Portfolio Balance Rate Date Deposits Withdrawals Balance Issuer:Federal Farm Credit Bank Federal Agency Issues-Callable 31331GZ36 2155 Federal Farm Credit Bank 10/19/2010 0.00 4,000,000.00 31331JYF4 2161 Federal Farm Credit Bank 0.900 08/19/2010 2,000,000.00 0.00 31331JYF4 2161 Federal Farm Credit Bank 11/19/2010 0.00 2,000,000.00 31331JZV8 2164 Federal Farm Credit Bank 0.950 09/03/2010 2,000,000.00 0.00 31331JM75 2170 Federal Farm Credit Bank 0.900 10/12/2010 2,000,000.00 0.00 Subtotal and Balance 0.00 10,000,000.00 6,000,000.00 4,000,000.00 IssuerSubtotal 3.820%0.00 10,000,000.00 6,000,000.00 4,000,000.00 Issuer:Federal Home Loan Bank Federal Agency Issues-Callable 3133XXK22 2124 Federal Home Loan Bank 1.250 07108/2010 0.00 2,000,000.00 3133XY2C8 2130 Federal Home Loan Bank 1.800 07/26/2010 0.00 2,000,000.00 3133XY5H4 2131 Federal Home Loan Bank 1.450 07/30/2010 0.00 2,000,000.00 3133XTAS4 2133 Federal Home Loan Bank 1.600 08/06/2010 0.00 2,000,000.00 3133XYDD4 2138 Federal Home Loan Bank 1.700 08/13/2010 0.00 2,000,000.00 3133XYCTO 2139 Federal Home Loan Bank 1.500 08/13/2010 0.00 2,000,000.00 3133XYFP5 2142 Federal Home Loan Bank 1.020 08/25/2010 0.00 2,000,000.00 3133XYXR1 2150 Federal Home Loan Bank 1.250 07/14/2010 2,000,000.00 0.00 3133XYXR1 2150 Federal Home Loan Bank 10/14/2010 0.00 2,000,000.00 313370BD9 2156 Federal Home Loan Bank 0.800 07/27/2010 2,000,000.00 000 313370BD9 2156 Federal Home Loan Bank 08/27/2010 0.00 2,000,000.00 313370NF1 2160 Federal Home Loan Bank 0.800 08/20/2010 2,000,000.00 0.00 313370NF1 2160 Federal Home Loan Bank 10/20/2010 0.00 2,000,000.00 313370P77 2162 Federal Home Loan Bank 0.850 08/25/2010 2,000,000.00 0.00 313370JRO 2163 Federal Home Loan Bank 0.850 08/27/2010 2,875,000.00 0.00 313370JRO 2163 Federal Home Loan Bank 09/27/2010 0.00 2,875,000.00 313370UP1 2165 Federal Home Loan Bank 0.875 09/13/2010 2,000,000.00 0.00 313370VGO 2166 Federal Home Loan Bank 0.800 09/21/2010 2,000,000.00 0.00 313370VGO 2166 Federal Home Loan Bank 10/21/2010 0.00 2,000,000.00 313371LKO 2173 Federal Home Loan Bank 0.700 11/16/2010 2,000,000.00 0.00 313371MR4 2174 Federal Home Loan Bank 0.700 11/22/2010 2,000,000.00 0.00 313371RA6 2175 Federal Home Loan Bank 0.700 12/07/2010 2,000,000.00 0.00 313371U20 2176 Federal Home Loan Bank 1.000 12/03/2010 2,000,000.00 0.00 Subtotal and Balance 20,000,000.00 22,875,000.00 24,875,000.00 18,000,000.00 Portfolio OTAY AP Run Date 01/16/2011 -11:42 DA (PRF_DA)7.2.0 Report Ver.7.3.2 OTAY Activity Report Page 3 July 1,2010 -December 31,2010 ParValue ParValue Percent Beginning Current Transaction Purchases or Redemptions or Ending CUSIP Investment#Issuer of Portfolio Balance Rate Date Deposits Withdrawals Balance IssuerSubtotal 17.188%20,000,000.00 22,875,000.00 24,875,000.00 18,000,000.00 Issuer:Federal Home Loan Mortgage Federal Agency Issues-Callable 3134G1AW4 2134 Federal Home Loan Mortgage 1.300 08/10/2010 0.00 2,000,000.00 3134G1DE1 2140 Federal Home Loan Mortgage 1.650 11/19/2010 0.00 2,000,000.00 3134G1EH3 2144 Federal Home Loan Mortgage 1.300 09/08/2010 0.00 2,000,000.00 3134G1KZ6 2151 Federal Home Loan Mortgage 1.000 07/20/2010 2,000,000.00 0.00 3134G1MD3 2153 Federal Home Loan Mortgage 1.100 07/22/2010 2,000,000.00 0.00 3134G1PK4 2158 Federal Home Loan Mortgage 1.000 08/11/2010 2,000,000.00 0.00 3134G1TU8 2167 Federal Home Loan Mortgage 0.800 09/28/2010 2,000,000.00 0.00 3134G1UR3 2169 Federal Home Loan Mortgage 0.900 09/28/2010 2,000,000.00 0.00 3134G1C69 2177 Federal Home Loan Mortgage 0.850 12/20/2010 2,000,000.00 0.00 3134G1G32 2179 Federal Home Loan Mortgage 1.000 12/28/2010 2,000,000.00 0.00 Subtotal and Balance 11,737,000.00 14,000,000.00 6,000,000.00 19,737,000.00 IssuerSubtotal 18.847%11,737,000.00 14,000,000.00 6,000,000.00 19,737,000.00 Issuer:Federal National Mortage Assoc Federal Agency Issues-Callable 31398AC91 2117 Federal National Mortage Assoc 1.500 07/20/2010 0.00 2,000,000.00 3136FJ4T5 2120 Federal National Mortage Assoc 1.500 08/16/2010 0.00 2,000,000.00 31398AH88 2123 Federal National Mortage Assoc 1.500 09/24/2010 0.00 2,000,000.00 31398AQ47 2135 Federal National Mortage Assoc 1.600 11/05/2010 0.00 2,000,000.00 3136FMRG1 2137 Federal National Mortage Assoc 1.300 11/10/2010 0.00 2,000,000.00 31398AS78 2143 Federal National Mortage Assoc 1.400 08/25/2010 0.00 2,000,000.00 31398AW65 2152 Federal National Mortage Assoc 1.000 07/27/2010 2,000,000.00 0.00 31398AW65 2152 Federal National Mortage Assoc 10/27/2010 0.00 2,000,000.00 3136FMX82 2154 Federal National Mortage Assoc 1.000 07/2612010 2,000,000.00 0.00 3136FM4N1 2157 Federal National Mortage Assoc 1.000 0811112010 2,000,000.00 0.00 3136FM6A7 2159 Federal National Mortage Assoc 1.000 08119/2010 2,000,000.00 0.00 3136FM6A7 2159 Federal National Mortage Assoc 11119/2010 0.00 2,000,000.00 3136FPHU4 2168 Federal National Mortage Assoc 0.875 09/2112010 2,000,000.00 0.00 3136FPQG5 2171 Federal National Mortage Assoc 0.850 10126/2010 635,000.00 000 3136FPSK4 2172 Federal National Mortage Assoc 0.675 10129/2010 2,000,000.00 0.00 3136FPL47 2178 Federal National Mortage Assoc 1.000 1212712010 2,000,000.00 0.00 Subtotal and Balance 22,000,000.00 14,635,000.00 16,000,000.00 20,635,000.00 Run Dale:0111612011 -11.42 Portfolio OTAY AP DA (PRF_DA)7.2.0 Report Ver.7.3.2 OTAY Activity Report Page 4 July 1,2010 -December 31,2010 Par Value Par Value Percent Beginning Current Transaction Purchases or Redemptions or Ending CUSIP Investment#Issuer ofPortfolio Balance Rate Date Deposits Withdrawals Balance IssuerSubtotal 19.704%22,000,000.00 14,635,000.00 16,000,000.00 20,635,000.00 Issuer:General Electric Capital Corporate Notes 36962G2S2 2044 General Electric Capital 5.000 12/01/2010 0.00 2,000,000.00 Subtotal and Balance 2,000,000.00 0.00 2,000,000.00 0.00 IssuerSubtotal 0.000%2,000,000.00 0.00 2,000,000.00 0.00 Issuer:Neighborhood National Bank Certificates of Deposit -Bank 1008995288 2119 Neighborhood National Bank 1.400 12/09/2010 0.00 1,000,000.00 Subtotal and Balance 3,000,000.00 0.00 1,000,000.00 2,000,000.00 Issuer Subtotal 1.910%3,000,000.00 0.00 1,000,000.00 2,000,000.00 Issuer:San Diego County San Diego County Pool SO COUNTY POOL 9007 San Diego County 0.686 88,341.63 2,007,811.85 Subtotal and Balance 18,878,241.73 88,341.63 2,007,811.85 16,958,771.51 IssuerSubtotal 16.194%18,878,241.73 88,341.63 2,007,811.85 16,958,771.51 Total 100.000%115,282,966.34 234,465,549.30 245,023,939.57 104,724,576.07 Run Date:01/16/2011 -11.42 Portfolio OTAY AP DA (PRF_DA)7.2.0 ReportVer.7.3.2 OlAY GASS 31 Compliance Detail Sorted by Fund -Fund July 1,2010 -December 31,2010 Adjustment in Value Investment Maturity Beginning Purchase Addition Redemption Amortization Change in Ending CUSIP Investment#Fund Class Date Invested Value of Principal to Principal of Principal Adjustment MarketValue Invested Value Fund:Treasury Fund LAIF 9001 99 Fair Value 18,535,367.70 0.00 50,225,790.49 50,350,161.28 0.00 -3,558.03 18,407,438.88 UNION MONEY 9002 99 Amortized 10,009.99 0.00 107,650,567.44 107,650,515.41 0.00 0.00 10,062.02 PETIYCASH 9003 99 Amortized 2,800.00 0.00 150.00 0.00 0.00 0.00 2,950.00 UNION OPERATING 9004 99 Amortized 1,044,711.99 0.00 3,828,169.41 4,019,381.93 0.00 0.00 853,499.47 PAYROLL 9005 99 Amortized 24,977.26 0.00 1,120,925.04 1,120,925.04 0.00 0.00 24,977.26 SO COUNTY POOL 9007 99 Fair Value 18,851,000.00 0.00 88,341.63 2,007,811.85 0.00 91,470.22 17,023,000.00 36962G2S2 2044 99 Fair Value 12/01/2010 2,032,000.00 0.00 0.00 2,000,000.00 0.00 -32,000.00 0.00 084664AF8 2094 99 FairValue 12/15/2010 2,030,740.00 0.00 0.00 2,000,000.00 0.00 -30,740.00 0.00 31398AC91 2117 99 FairVaiue 01/20/2012 2,000,620.00 0.00 0.00 2,000,000.00 0.00 -620.00 0.00 3136FJR45 2118 99 FairValue 01/25/2013 2,005,620.00 0.00 0.00 0.00 0.00 -4,820.00 2,000,800.00 1008995288 2119 99 Amortized 12/09/2010 1,000,000.00 0.00 0.00 1,000,000.00 0.00 0.00 0.00 3136FJ4T5 2120 99 FairValue 08/16/2012 2,002,500.00 0.00 0.00 2,000,000.00 0.00 -2,500.00 0.00 2050003183-4 2121 99 Amortized 01/22/2012 79,108.00 0.00 0.00 0.00 0.00 0.00 79,108.00 31398AH88 2123 99 FairVaiue 09/24/2012 2,004,380.00 0.00 0.00 2,000,000.00 0.00 -4,380.00 0.00 3133XXK22 2124 99 Fair Value 06/25/2012 2,000,000.00 0.00 0.00 2,000,000.00 0.00 0.00 0.00 1006200563-2 2126 99 Amortized 02/04/2011 2,000,000.00 0.00 0.00 0.00 0.00 0.00 2,000,000.00 3136FMFRO 2127 99 Fair Value 10105/2012 2,012,500.00 0.00 0.00 0.00 0.00 -7,160.00 2,005,340.00 3133XXRW9 2128 99 Fair Value 06/29/2012 2,012,500.00 0.00 0.00 0.00 0.00 -7,700.00 2,004,800.00 3136FMJF2 2129 99 Fair Value 05/14/2012 2,009,380.00 0.00 0.00 000 0.00 -8,840.00 2,000,540.00 3133XY2C8 2130 99 Fair Value 01/29/2013 2,001,880.00 0.00 0.00 2,000,000.00 0.00 -1,880.00 0.00 3133XY5H4 2131 99 FairVaiue 07/30/2012 2,001,880.00 0.00 0.00 2,000,000.00 0.00 -1,880.00 0.00 3136FMPB4 2132 99 FairVaiue 10/29/2012 2,010,620.00 0.00 0.00 0.00 0.00 -4,580.00 2,006,040.00 3134G1AW4 2134 99 FairVaiue 05/10/2012 2,001,920.00 0.00 0.00 2,000,000.00 0.00 -1,920.00 0.00 31398AQ47 2135 99 Fair Value 11/05/2012 2,007,500.00 0.00 0.00 2,000,000.00 0.00 -7,500.00 0.00 3136FMRH9 2136 99 FairValue 10/29/2012 2,014,380.00 0.00 0.00 0.00 0.00 -7,120.00 2,007,260.00 3136FMRG1 2137 99 FairValue 05/10/2012 2,005,620.00 0.00 0.00 2,000,000.00 0.00 -5,620.00 0.00 3133XYOO4 2138 99 FairValue 11/13/2012 2,002,500.00 0.00 0.00 2,000,000.00 0.00 -2,500.00 0.00 3133XYCTO 2139 99 FairValue 08/13/2012 2,002,500.00 0.00 0.00 2,000,000.00 0.00 -2,500.00 0.00 3134G1DE1 2140 99 FairValue 11/19/2012 2,008,000.00 0.00 0.00 2,000,000.00 0.00 -8,000.00 0.00 RESERVE-10 COPS 9010 99 Amortized 690.76 0.00 0.00 0.00 0.00 0.00 690.76 RESERVE-10 BABS 9011 99 Amortized 425.01 0.00 0.00 0.00 0.00 0.00 425.01 3133XYFP5 2142 99 FairValue 11/25/2011 2,001,880.00 0.00 0.00 2,000,000.00 0.00 -1,880.00 0.00 Portfolio OTAY AP RunOate:01116/2011-11:43 GO (PRF_GO)7.1.1 ReportVer.7.3.2 OTAY GASB 31 Compliance Detail Page 2 Sorted by Fund -Fund Adjustment in Value Investment Maturity Beginning Purchase Addition Redemption Amortization Change in Ending CUSIP Investment#Fund Class Date Invested Value ofPrincipal to Principal ofPrincipal Adjustment MarketValue Invested Value Fund:Treasury Fund 31398AS78 2143 99 Fair Value 05/25/2012 2,001,880.00 0.00 0.00 2,000,000.00 0.00 -1,880.00 0.00 3134G1EH3 2144 99 Fair Value 06/08/2012 2,002,540.00 0.00 0.00 2,000,000.00 0.00 -2,540.00 0.00 LAIF BABS 2010 9012 99 Fair Value 16,026,300.42 0.00 41,605.29 12,000,144.06 0.00 -20,394.54 4,047,367.11 UBNA-2010 BOND 9013 99 Amortized 51.89 0.00 10,000,000.00 10,000,000.00 0.00 0.00 51.89 3133XYNSO 2145 99 Fair Value 12/10/2012 2,009,380.00 0.00 0.00 0.00 0.00 -1,500.00 2,007,880.00 3137EACK3 2146 99 Fair Value 07/27/2012 2,014,380.00 0.00 000 0.00 0.00 3,640.00 2,018,020.00 3133XYSH9 2147 99 Fair Value 09/21/2012 2,010,000.00 0.00 0.00 0.00 0.00 -1,860.00 2,008,140.00 3137EACK3A 2148 99 Fair Value 07/27/2012 1,037,405.70 0.00 0.00 0.00 0.00 1,874.60 1,039,280.30 3137EACK3B 2149 99 Fair Value 07/27/2012 2,726,463.33 0.00 0.00 0.00 0.00 4,926.74 2,731,390.07 3133XYXR1 2150 99 Fair Value 01/14/2013 0.00 2,000,000.00 0.00 2,000,000.00 0.00 000 0.00 3134G1KZ6 2151 99 Fair Value 07/20/2012 000 2,000,000.00 0.00 0.00 0.00 500.00 2,000,500.00 31398AW65 2152 99 Fair Value 07/27/2012 0.00 2,000,000.00 0.00 2,000,000.00 0.00 0.00 0.00 3134G1M03 2153 99 FairValue 07/22/2011 0.00 2,000,000.00 0.00 0.00 0.00 5,880.00 2,005,880.00 3136FMX82 2154 99 Fair Value 10/26/2012 0.00 2,000,000.00 0.00 0.00 0.00 780.00 2,000,780.00 313370B09 2156 99 Fair Value 04/27/2012 0.00 2,000,000.00 0.00 2,000,000.00 0.00 0.00 0.00 3136FM4N1 2157 99 FairValue 02/11/2013 0.00 2,000,000.00 0.00 0.00 0.00 1,300.00 2,001,300.00 3134G1PK4 2158 99 Fair Value 02/11/2013 0.00 2,000,000.00 0.00 0.00 0.00 5,120.00 2,005,120.00 313370NF1 2160 99 FairValue 11/20/2012 0.00 2,000,000.00 0.00 2,000,000.00 0.00 0.00 0.00 31331JYF4 2161 99 Fair Value 02/19/2013 0.00 2,000,000.00 0.00 2,000,000.00 0.00 0.00 0.00 313370P77 2162 99 Fair Value 02/25/2013 0.00 2,000,000.00 0.00 0.00 0.00 -420.00 1,999,580.00 313370JRO 2163 99 Fair Value 08/27/2012 0.00 2,875,000.00 0.00 2,875,000.00 0.00 0.00 0.00 31331JZV8 2164 99 Fair Value 05103/2013 000 2,000,000.00 0.00 0.00 0.00 -78000 1,999,220.00 313370UP1 2165 99 FairValue 03/13/2013 0.00 2,000,000.00 0.00 0.00 0.00 20.00 2,000,020.00 313370VGO 2166 99 Fair Value 09/21/2012 0.00 2,000,000.00 0.00 2,000,000.00 0.00 0.00 0.00 3134G1TU8 2167 99 Fair Value 09/28/2012 0.00 2,000,000.00 0.00 0.00 0.00 1,100.00 2,001,100.00 3136FPHU4 2168 99 Fair Value 03/21/2013 0.00 2,000,000.00 0.00 0.00 0.00 -420.00 1,999,580.00 3134G1UR3 2169 99 Fair Value 03/28/2013 0.00 2,000,000.00 0.00 0.00 000 -500.00 1,999,500.00 31331JM75 2170 99 Fair Value 04/12/2013 0.00 2,000,000.00 0.00 0.00 0.00 -5,680.00 1,994,320.00 3136FPQG5 2171 99 Fair Value 07/26/2013 0.00 635,000.00 0.00 0.00 0.00 -3,854.45 631,145.55 3136FPSK4 2172 99 Fair Value 04/29/2013 0.00 1,999,500.00 0.00 0.00 0.00 -12,580.00 1,986,920.00 3133XTAS4 2133 99 Fair Value 11/06/2012 2,001,880.00 0.00 0.00 2,000,000.00 0.00 -1,880.00 0.00 313371LKO 2173 99 Fair Value 11/16/2012 0.00 2,000,000.00 0.00 0.00 0.00 -9,200.00 1,990,800.00 313371MR4 2174 99 Fair Value 05/22/2013 0.00 2,000,000.00 0.00 0.00 0.00 -19,640.00 1,980,360.00 313371RA6 2175 99 Fair Value 12/07/2012 0.00 2,000,000.00 0.00 0.00 0.00 -8,720.00 1,991,280.00 313371U20 2176 99 FairValue 06/03/2013 0.00 2,000,000.00 0.00 0.00 0.00 -11,600.00 1,988,400.00 31331GZ36 2155 99 Fair Value 07/19/2012 0.00 4,012,400.00 0.00 4,000,000.00 0.00 -12,400.00 0.00 3134G1C69 2177 99 Fair Value 06/20/2013 0.00 2,000,000.00 0.00 0.00 0.00 -8,900.00 1,991,100.00 Portfolio OTAY AP Run Date:01/16/2011 -11:43 GO (PRF_GO)7.1.1 ReportVer.7.3.2 DTAY GASB 31 Compliance Detail Sorted by Fund -Fund Page 3 CUSIP Investment#Fund Investment Class Maturity Date Beginning Invested Value Purchase of Principal Addition to Principal Redemption of Principal Adjustment in Value Amortization Change in Adjustment Market Value Ending Invested Value Fund:Treasury Fund 3136FPL47 2178 3134G1G32 2179 3136FM6A7 2159 Run Date:01/16/2011 -11:43 99 99 99 FairVaiue FairVaiue Fair Value 06/27/2013 03/28/2013 11/19/2012 Subtotal Total 0.00 2,000,000.00 0.00 0.00 0.00 -9,860.00 0.00 2,000,000.00 000 000 0.00 -3,980.00 0.00 2,000,000.00 0.00 2,000,000.00 0.00 0.00 115,548,292.05 61,521,900.00 172,955,549.30 245,023,939.57 0.00 -169,675.46 115,548,292.05 61,521,900.00 172,955,549.30 245,023,939.57 0.00 -169,675.46 1,990,140.00 1,996,020.00 0.00 104,832,126.32 104,832,126.32 Portfolio DTAY AP GO (PRF_GO)711 Report Ver.7.3.2 OTAY Duration Report Sorted by Investment Type -Investment Type Through 12/31/2010 Security ID 3134G1C69 3134G1KZ6 3137EACK3 3137EACK3A 3134G1G32 3134G1PK4 3137EACK3B 3134GHU8 3134G1UR3 3134G1MD3 3136FJR45 3136FM4N1 3136FPSK4 3136FMX82 3136FPL47 3136FMPB4 3136FMJF2 3136FMFRO 3136FPHU4 3136FMRH9 3136FPQG5 3133XYSH9 313371MR4 3133XYNSO 3133XXRW9 313370UP1 313371 U20 313370P77 313371LKO 313371RA6 Investment# 2177 2151 2146 2148 2179 2158 2149 2167 2169 2153 2118 2157 2172 2154 2178 2132 2129 2127 2168 2136 2171 2147 2174 2145 2128 2165 2176 2162 2173 2175 Fund 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 Issuer Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal National Mortage Assoc Federal National Mortage Assoc Federal National Mortage Assoc Federal National MortageAssoc Federal National Mortage Assoc Federal National Mortage Assoc Federal National MortageAssoc Federal National Mortage Assoc Federal National Mortage Assoc Federal National Mortage Assoc Federal National Mortage Assoc Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Investment Class Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Book Value 2,000,000.00 2,000,000.00 1,999,302.49 1,030,000.00 2,000,000.00 2,000,000.00 2,707,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 1,999,534.44 2,000,000.00 2,000,00000 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 635,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 Par Value 2,000,000.00 2,000,000.00 2,000,000.00 1,030,000.00 2,000,000.00 2,000,000.00 2,707,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 635,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 Market Current Value Rate 1,991,100.00 .8500000 2,000,500.00 1.000000 2,018,020.00 1.147196 1,039,280.30 1.125000 1,996,020.00 1.000000 2,005,120.00 1.000000 2,731,390.07 1.125000 2,001,100.00 .8000000 1,999,500.00 .9000000 2,005,880.00 1.100000 2,000,800.00 1.250000 2,001,300.00 1.000000 1,986,920.00 .6750000 2,000,780.00 1.000140 1,990,140.00 1.000000 2,006,040.00 1.480000 2,000,540.00 1.250000 2,005,340.00 1.500000 1,999,580.00 .8750000 2,007,260.00 1.550000 631,145.55 .8500830 2,008,140.00 1.125178 1,980,360.00 .7000000 2,007,880.00 1.280000 2,004,800.00 1.250000 2,000,020.00 .8750000 1,988,400.00 1.000000 1,999,580.00 .8500000 1,990,800.00 .7000000 1,991,280.00 .7000000 YTM 360 0.838 0.986 1.154 1.109 0.986 0.986 1.109 0.789 0.888 1.085 1.233 0.986 0.676 0.986 0.986 1.460 1.233 1.479 0.863 1.529 0.837 1.110 0.690 1.262 1.233 0.863 0.986 0.838 0.690 0.690 Current Yield 1.033 0.984 0.571 0.549 1.090 0.877 0.549 0.768 0.911 0.572 1.230 0.969 0.960 0.979 1.202 1.313 1.230 1.347 0.885 1.349 1.090 0.887 1.117 1.075 1.088 0.875 1.244 0.860 0.948 0.928 Maturityl Modified Call Date Duration 06/20/2013 2.435 07/20/2012 1.529 07/27/2012 1.548 07/27/2012 1.557 03/28/2013 2.209 02/11/2013 2.077 07/27/2012 1.557 09/28/2012 1.722 03/28/2013 2.209 07/22/2011 0.553 01/25/2013 2.003 02/11/2013 2.076 04/29/2013 2.299 10/26/2012 1.795 06/27/2013 2.449 10/29/2012 1.793 05/14/2012 1.350 10/05/2012 1.740 03/21/2013 2.190 10/29/2012 1.792 07/26/2013 2.529 09/21/2012 1.701 OS/22/2013 2.361 12/10/2012 1.912 06/29/2012 1.477 03/13/2013 2.169 06/03/2013 2.382 02/25/2013 2.119 11/16/2012 1.855 12/07/2012 1.913 Run Date:01/16/2011 -11:44 Page 1 Portfolio OTAY AP DU (PRF_DU)7.1.1 ReportVer.7.3.2 OTAY Duration Report Sorted by Investment Type -Investment Type Through 12/31/2010 Investment Book Par Market Current YTM Current Maturityl Modified Security 10 Investment#Fund Issuer Class Value Value Value Rate 360 Yield Call Date Duration 31331JZV8 2164 99 Federal Farm Credit Bank Fair 2,000,000.00 2,000,000.00 1,999,220.00 .9500950 0.937 0.967 05/03/2013 2.304 31331JM75 2170 99 Federal Farm Credit Bank Fair 2,000,000.00 2,000,000.00 1,994,320.00 .9000000 0.888 1.026 04/12/2013 2.246 2050003183-4 2121 99 California Bank &Trust Amort 79,108.00 79,108.00 79,108.00 1.380000 1.380 1.380 01/22/2012 1.048t 1006200563-2 2126 99 Neighborhood National Bank Amort 2,000,000.00 2,000,000.00 2,000,000.00 1.400000 1.400 1.400 02104/2011 0.089 t LAIF COPS07 9009 99 STATE OF CALIFORNIA Fair 0.00 0.00 0.00 1.530000 1.509 1.530 0.000 LAIF BABS 20109012 99 STATE OF CALIFORNIA Fair 4,041,461.23 4,041,461.23 4,047,367.11 .4620000 0.456 0.462 0.000 LAIF 9001 99 STATE OF CALIFORNIA Fair 18,380,578.92 18,380,578.92 18,407,438.88 .4620000 0.456 0.462 0.000 SD COUNTY 9007 99 San Diego County Fair 16,958,771.51 16,958,771.51 17,023,000.00 .6860000 0.677 0.686 0.000 ReportTotal 103,830,756.59 103,831,919.66 103,939,469.91 0.830 1.155t t =Duration can not be calculated on these investments due to incomplete Market price data. Run Date:01/16/2011 -11:44 Page 2 Portfolio OTAY AP DU (PRF_DU)7.1.1 Report VeL 7.3.2 STAFF REPORT February 2,2011 DIV.NO. MEETING DATE: W.O.lG.F.NO: Regular Board ~.~ Sean prenderga~~F{~fl,- Supervisor,Payroll &AP APPROVED BY:Joseph Beachem,Chief Financial Officer (Chief) TYPE MEETING: SUBMITIED BY: APPROVED BY:German Alvarez,Assistant General Manager (Ass!.GM): SU~EC~Accounts Payable Demand List PURPOSE: Attached is the list of demands for the Board's information. FISCAL IMPACT: SUMMARY NET DEMANDS CHECKS (2026950-2027274) VO ID CHECKS (6) TOTAL CHECKS WIRE TO: CALPERS -OTHER POST EMPLOYMENT BENEFITS CITY OF CHULA VISTA -BI-MONTHLY SEWER CHARGES DELTA HEALTH SYSTEMS -DENTAL &COBRA CLAIMS LANDESBANK -CERTIFICATES OF PARTICIPATION SAN DIEGO COUNTY WATER WATER DELIVERIES SPECIAL DIST RISK MGMT AUTH -INSURANCE PREMIUM STATE BOARD OF EQUALIZATION -SALES USE TAX UNION BANK -PAYROLL TAXES $1,634,425.34 $(37,733.43) $1,596,691.91 $28,900.00 $2,759,076.58 $6,590.98 $28,656.42 $2,094,834.40 $444,124.65 $4,700.00 $312,566.36 TOTAL CASH DISBURSEMENTS $7,276,141.30 RECOMMENDED ACTION: That the Board receive the attached list of demands. Jb/Attachment OTAYWATER DISTRICT CHECK REGISTER FOR CHECKS 2026950 THROUGH 2027274 RUN DATES 1/5/2011 TO 1/26/2011 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2027008 01/12111 12521 AAA FOREIGN AUTO Ref002411184 01/11/11 UB Refund Cst#0000000842 7.00 7.00 2026950 01/05/11 08488 ABLEFORCE INC 2507 12/14/10 CONSULTING SERVICES 9,945.00 9,945.00 2027132 01/19/11 08488 ABLEFORCE INC 2518 12/28/10 CONSULTING SERVICES 9,860.00 9,860.00 2026951 01/05/11 03317 ADVANCED CALL PROCESSING INC 20102083 12/20/10 PBX UPGRADE 115,778.00 115,778.00 2026952 01/05/11 11462 AEGIS ENGINEERING MGMT INC 1013 12/06/10 PLAN CHECKING 8,601.55 8,601.55 2027201 01/26/11 11462 AEGIS ENGINEERING MGMT INC 1101 01/06/11 DEVELOPER PLANCHECKS 12,379.64 1014 01/06/11 PLAN CHECKING 7,646.40 20,026.04 2026953 01/05/11 11803 AEROTEK ENVIRONMENTAL OE00691188 11/04/10 TEMPORARYSERVICES 2,351.68 2,351.68 2027054 01/12/11 07732 AIRGAS SPECIALTY PRODUCTS INC 131181207 12/21/10 AQUA AMMONIA 2,052.75 131181206 12/21/10 AQUA AMMONIA 1,420.86 131181209 12/21/10 AQUA AMMONIA 592.11 131181208 12/21/10 AQUA AMMONIA 177.48 4,243.20 2027202 01/26/11 00132 AIRGAS WEST INC 103229116 12/31/10 BREATHING AIR 28.85 28.85 2027009 01/12/11 12538 ALEXANDRA GONZALEZ Ref002411202 01/11/11 UB Refund Cst #0000143954 7.13 7.13 2027010 01/12/11 12540 ALEXANDRAVERLANGA Ref002411204 01/11/11 UB Refund Cst#0000146351 84.36 84.36 2027011 01/12/11 12539 ALFONSO VAZQUEZ Ref002411203 01/11/11 UB Refund Cst#0000145653 205.35 205.35 2026954 01/05/11 01463 ALLIED ELECTRONICS INC 48940300 12/13/10 CAT6 CONNECTORS 36.96 36.96 2027133 01/19/11 02362 ALLIED WASTE SERVICES #509 0509004201413 12/25/10 CONTAINER RENTAL 210.95 0509004202090 12/25/10 TRASH SERVICES TP 148.52 359.47 2027203 01/26/11 02362 ALLIED WASTE SERVICES #509 0509004188606 11/25/10 TRASH SERVICES 846.92 0509004190561 11/25/10 TRASH SERVICES TP 147.79 994.71 2027055 01/12/11 06166 AMERICAN MESSAGING L1109570LA 01/01/11 PAGER SERVICES 113.75 113.75 2026955 01/05/11 00107 AMERICAN WATER WORKS ASSN 7000300538 11/25/10 MEMBERSHIP RENEWAL 95.00 95.00 2027056 01/12/11 00107 AMERICAN WATER WORKS ASSN 002300571110 11/25/10 MEMBERSHIP RENEWAL 231.00 231.00 2027204 01/26/11 00107 AMERICAN WATER WORKS ASSN 7000303220 11/25/10 AGENCY DUES 5,213.00 5,213.00 2027205 01/26/11 00002 ANSWER INC 4479 01/22/11 ANSWERING SERVICES 1,000.00 1,000.00 2027057 01/12/11 08967 ANTHEM BLUE CROSS EAP 40930 12/23/10 EMPLOYEE ASSISTANCE 370.30 370.30 Page 1 of 17 OTAYWATER DISTRICT CHECK REGISTER FOR CHECKS 2026950 THROUGH 2027274 RUN DATES 1/5/2011 TO 1/26/2011 Check#Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2026956 01/05/11 03357 APEX ADVERTISING INC 46771 12/14/10 COMMUNITY INVOLVEMENT PRIZES 865.63 865.63 2027058 01/12/11 03357 APEX ADVERTISING INC 46801 12/21/10 COMMUNITY INVOLVEMENT PRIZES 899.67 899.67 2026957 01105/11 05758 AT&T 61942256051210 12/20/10 PHONE SVC (INTERAGENCYWTR MTR CONN)76.71 76.71 2026958 01/05/11 05758 AT&T 33784130451210 12/07/10 PHONE SERVICE (HI HEAD P/S-SCADA)32.27 32.27 2027059 01/12/11 05758 AT&T 082164572812251C 12/25/10 INTERNET BANDWIDTH 1,954.46 1,954.46 2027206 01/26/11 07785 AT&T 000001981176 01/02/11 PHONE SERVICES 5,464.01 5,464.01 2026959 01/05/11 08330 AT&T INTERNET SERVICES 8547826251210 12/22/10 INTERNET BANDWIDTH 1,200.00 1,200.00 2027060 01/12/11 03543 AUDIO ASSOCIATES OF 9902 12108110 CREWROOM PROJECTOR 6,879.45 6,879.45 2027012 01/12/11 12548 BLANCA ROMERO Ref002411212 01/11/11 UB Refund Cst #0000162174 43.08 43.08 2027013 01/12/11 12563 BRENNAN &ASSOCIATES Ref002411229 01/11/11 UB Refund Cst #0000173016 54.03 54.03 2026960 01105/11 10970 BRENNTAG PACIFIC INC BPI058347 12/14/10 SODIUM HYPOCHLORITE 3,458.52 BP1058727 12/15/10 SODIUM HYPOCHLORITE 809.30 BP1058725 12/15/10 SODIUM HYPOCHLORITE 688.24 BPI057979 12/13/10 SODIUM HYPOCHLORITE 559.12 BP1058728 12/16/10 SODIUM HYPOCHLORITE 391.97 5,907.15 2027061 01/12/11 10970 BRENNTAG PACIFIC INC BPI060273 12/22/10 SODIUM HYPOCHLORITE 1,812.26 BPI059927 12/20/10 SODIUM HYPOCHLORITE 719.37 BPI059928 12/20/10 SODIUM HYPOCHLORITE 653.66 BPI059929 12/20/10 SODIUM HYPOCHLORITE 426.55 BP1060272 12/22/10 SODIUM HYPOCHLORITE 147.57 3,759.41 2027134 01/19/11 10970 BRENNTAG PACIFIC INC BP1061372 12/28/10 SODIUM HYPOCHLORITE 996.06 BPI059146 12/16/10 BLEACH DRUMS 767.51 BPI061373 12/28/10 SODIUM HYPOCHLORITE 596.02 2,359.59 2027207 01/26/11 10970 BRENNTAG PACIFIC INC BPI123857 CREDIT MEMO (160.00) BPI062582 01/03/11 SODIUM HYPOCHLORITE 768.95 608.95 2027062 01/12/11 01232 BRODING'S BATTERY 23247 11/17/10 BATTERIES 621.78 24302 12/17/10 BATTERIES 369.53 23992 12/08/10 BATTERIES 217.39 1,208.70 2027135 01/19/11 01232 BRODING'S BATTERY 24596 12/29/10 BATTERIES 218.42 218.42 2026961 01105/11 00223 C W MCGRATH INC 38158 12/10/10 CRUSHED ROCK 97.67 97.67 2027063 01/12/11 00223 C W MCGRATH INC 38258 01/05/11 CRUSHED ROCK 621.10 621.10 Page 2 of 17 OTAY WATER DISTRICT CHECK REGISTER FOR CHECKS 2026950 THROUGH 2027274 RUN DATES 1/5/2011 TO 1/26/2011 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2027014 01/12/11 12562 CALIFORNIA REAL ESTATE OWNED Ref002411228 01/11/11 UB Refund Cst#0000172921 62.50 62.50 2026962 01/05/11 08328 CALIFORNIA RURAL WATER 002620 01/03/11 SUBSCRIPTION 47.00 47.00 2027064 01/12/11 12465 CALIFORNIA SURVEYING DRAFTING C579868 CREDIT MEMO (500.00) 579548 12/14/10 GEOXH HANDHELD 6,879.46 6,379.46 2027136 01/19/11 00192 CALIFORNIA WATER ENVIRONMENT 002664 01/12/11 REGISTRATION FEES 330.00 330.00 2027065 01/12111 01004 CALOLYMPIC SAFETY 078062 12/14/10 HAZWOPER REFRESHER 1,087.50 078278 12/10/10 CALIBRATION GAS 176.78 078762 12108/10 SENSORS &NFPA 38.56 1,302.84 2027208 01/26/11 05413 CALPERS AVLOOOO0772 01/05/11 VALUATION FEE 200.00 200.00 2027137 01/19/11 03376 CAREERTRACK 12234398 01106/11 REGISTRATION FEE 399.00 399.00 2027209 01/26/11 02758 CARMEL BUSINESS SYSTEMS INC 7265 01/01/11 RECORDS ASSISTANCE 1,752.18 7267 01101/11 SCANNING SERVICES 1,001.48 7264 01/01/11 RECORDS STORAGE 409.00 7266 01101/11 SCANNING SERVICES 178.02 3,340.68 2027015 01/12/11 12552 CARMEN CECENA Ref002411216 01/11/11 UB Refund Cst #0000169728 75.00 75.00 2027210 01/26/11 04653 CARO,PATRICIA 002672 01/19/11 TUITION 475.00 475.00 2027016 01/12/11 12543 CASCADE WATER Ref002411207 01/11/11 UB Refund Cst #0000155625 695.78 695.78 2027211 01/26/11 10571 CCL CONTRACTING 17 01/05/11 P2009/P2038 JAMACHA ROAD PIPELINE 18,424.07 18,424.07 2027138 01/19/11 03232 CDW GOVERNMENT INC VZG4761 12/29/10 MODEM 148.05 148.05 2027139 01/19/11 04349 CHAMBERS,JONATHAN 002660 01/12/11 TUITION 96.00 96.00 2027017 01/12/11 12544 CHEREE MANALO Ref002411208 01/11/11 UB Refund Cst #0000159618 29.39 29.39 2027018 01/12/11 07830 CHRISTOPHER KLEMPAY Ref002411193 01/11/11 UB Refund Cst #0000072787 23.05 23.05 2027066 01/12/11 00446 CITY OF CHULA VISTA 002648 01/11/11 PLAN CHECK 619.77 619.77 2027273 01/26/11 00446 CITY OF CHULA VISTA 002648 01/11/11 PLAN CHECK 619.77 619.77 2027274 01/26/11 00446 CITY OF CHULA VISTA 3 01/13/11 FEASIBILITY STUDY 22,401.68 22,401.68 2026963 01/05/11 08895 CITY OF LA MESA 13675 12/16/10 L1VESCAN FEES 40.00 40.00 2027019 01/12/11 12534 CLARINDA CVENGROS Ref002411198 01/11/11 UB Refund Cst#0000092276 65.46 65.46 Page 3 of 17 OTAYWATERDISTRICT CHECK REGISTER FOR CHECKS 2026950 THROUGH 2027274 RUN DATES 1/5/2011 TO 1/26/2011 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2027213 01/26/11 04119 CLARKSON LAB &SUPPLY INC 53734 12/31/10 BACTERIOLOGICAL SERVICES 362.00 53737 12/31/10 BACTERIOLOGICAL SERVICES 211.00 53736 12/31/10 BACTERIOLOGICAL SERVICES 131.00 53735 12/31/10 BACTERIOLOGICAL SERVICES 125.00 829.00 2027214 01/26/11 11520 CLINICAL LABORATORY OF 911982 01/03/11 LAB ANALYSIS 266.00 266.00 2027067 01/12/11 08160 COMPLETE OFFICE C12529780 CREDIT MEMO (23.48) 12529780 12/16/10 2011 CALENDARS 33.16 12534900 12/20/10 2011 CALENDARS 10.59 20.27 2027215 01/26/11 08160 COMPLETE OFFICE 12499400 12/02/10 TONERS 576.30 12533630 01/05/11 PLUNGER LOCKS 163.79 12564410 01/06/11 CALENDARS 41.30 12526930 12/30/10 STAMP 35.88 817.27 2027216 01/26/11 03706 CONSUMERS PIPE &SUPPLY S1149495001 12/22/10 METER MATERIALS 335.82 335.82 2027068 01/12111 10565 COOPER.BRIAN 002643 01/07/11 TUITION 1,705.00 1,705.00 2027217 01/26/11 12282 CORELOGIC INFORMATION 13034181 12/31/10 REALQUEST BUNDLE 241.67 241.67 2027218 01/26/11 12334 CORODATA MEDIA STORAGE INC DS1241361 01/05/11 DATA STORAGE 696.23 696.23 2027140 01/19/11 02612 COUNCIL OF WATER UTILITIES 002663 01/11111 MONTHLY MEETING 75.00 75.00 2026964 01/05/11 00184 COUNTY OF SAN DIEGO DEH110708D11 12/17/10 SHUTDOWN TEST 981.75 981.75 2026965 01/05/11 02122 COUNTY OF SAN DIEGO 2010111605668 11/16/10 PERMIT RENEWAL 400.00 400.00 2026966 01/05/11 02122 COUNTY OF SAN DIEGO 002626 11/04/10 RENEWAL FEES 110.98 110.98 2027069 01/12/11 00184 COUNTY OF SAN DIEGO DEH110291D11 12/27/10 SHUT DOWN TEST 994.00 DEH110299D11 12/27/10 SHUTDOWN TEST 852.00 DEH110289D11 12/27/10 SHUTDOWN TEST 852.00 DEH110288D11 12/27/10 SHUTDOWN TEST 852.00 3,550.00 2027070 01/12/11 00099 COUNTY OF SAN DIEGO -DPW 134852 11/30/10 EXCAVATION PERMITS 2,826.20 2,826.20 2027141 01/19/11 00099 COUNTY OF SAN DIEGO -DPW 136293 12/31/10 EXCAVATION PERMITS 689.94 689.94 2027219 01/26/11 11286 CPM PARTNERS INC 11001 01/03/11 SCHEDULING SERVICES 4,630.00 4,630.00 2026967 01105/11 10977 CRAFCOINC 00417232 12/14/10 HP COLD PATCH 1,761.75 1,761.75 2026968 01/05/11 05125 CUDLlP,JAMES 002627 01/04/11 COMPUTER LOAN 1,061.59 1,061.59 Page 4 of17 OTAYWATER DISTRICT CHECK REGISTER FOR CHECKS 2026950 THROUGH 2027274 RUN DATES 1/5/2011 TO 1/26/2011 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2027142 01/19/11 11797 0&H WATER SYSTEMS INC 2010118 12/28/10 CHLORINE SCALES 21,480.30 21,480.30 2027020 01/12/11 12529 DARRYL SMITH Ref002411192 01/11/11 UB Refund Cst #0000063142 16.32 16.32 2027220 01/26/11 12575 DAVID BAVENCOFF 007005203REF 01/24/11 CUSTOMER REFUND 144.69 144.69 2027021 01/12/11 12530 DAVID GARATE Ref002411194 01111/11 UB Refund Cst #0000073495 75.00 75.00 2027143 01/19/11 03606 DCSE INC 1002 12/28/10 INTEGRATION SERVICES 9,030.00 9,030.00 2027221 01/26/11 01797 DELL ENTERPRISES 188119 01105/11 RECOGNITION PLAQUE 127.78 127.78 2026969 01/05/11 02603 DELL MARKETING LP xf5txpf96 12/16/10 DELL LAPTOP 1,467.57 1,467.57 2027071 01/12/11 07680 DELTA HEALTH SYSTEMS IVC04406 11/30/10 EMPLOYEE HEALTH 309.50 309.50 2027144 01/19/11 00319 DEPARTMENT OF PUBLIC HEALTH 187570111 01/13/11 CERTIFICATE RENEWAL 80.00 80.00 2027145 01/19/11 00319 DEPARTMENT OF PUBLIC HEALTH 188370111 01/12/11 CERTIFICATE RENEWAL 60.00 60.00 2027222 01/26/11 02519 DIEHL EVANS &COMPANY LLP 69435 12/31/10 AUDIT SERVICES 1,400.00 1,400.00 2027072 01/12/11 03417 DIRECTV 1409625613 12/19/10 SATELLITE TV 5.00 5.00 2027223 01/26/11 03417 DIRECTV 1421034635 01/05/11 SATELLITE TV 19.33 19.33 2027146 01/19/11 05134 DYCHITAN,MARISSA 002661 01/12/11 TUITION 910.00 910.00 2027022 01/12/11 12526 ED LOPEZ Ref002411189 01/11/11 UB Refund Cst #0000031494 73.87 73.87 2027073 01/12/11 02447 EDCO DISPOSAL CORPORATION 1554581210 12/31/10 RECYCLING SERVICES 180.00 180.00 2027023 01/12/11 12531 ELOISA MARTINEZ Ref002411195 01/11/11 UB Refund Cst #0000074024 30.73 30.73 2027224 01/26/11 08023 EMPLOYEE BENEFIT SPECIALISTS 0051590lN 12/31/10 ADMINISTRATION FEES 562.50 562.50 2026970 01105/11 03227 ENVIROMATRIX ANALYTICAL INC 0120211 12/13/10 LABORATORY SERVICES 670.00 670.00 2027074 01112/11 03227 ENVIROMATRIX ANALYTICAL INC 0120351 12/20/10 LABORATORY SERVICES 560.00 560.00 2027225 01/26/11 03227 ENVIROMATRIXANALYTICAL INC 1010017 01/03/11 LABORATORY SERVICES 425.00 425.00 2027147 01/19/11 04899 ERICKSON-HALL CONSTRUCTION CO 002650 01/13/11 WIO REFUND 00028-060018 3,164.95 3,164.95 2027075 01/12/11 02639 EW TRUCK &EQUIPMENT 40557 12/20/10 SMOKE TESTING 45.00 40558 12/20/10 SMOKE TESTING 45.00 40559 12/20/10 SMOKE TESTING 45.00 40560 12/20/10 SMOKE TESTING 45.00 Page 5 of 17 OTAYWATER DISTRICT CHECK REGISTER FOR CHECKS 2026950 THROUGH 2027274 RUN DATES 1/5/2011 TO 1/26/2011 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 40561 12/20/10 SMOKE TESTING 45,00 40562 12/20/10 SMOKE TESTING 45,00 40563 12/20/10 SMOKE TESTING 45,00 40564 12/20/10 SMOKE TESTING 45,00 40565 12/20/10 SMOKE TESTING 45,00 40566 12/20/10 SMOKE TESTING 45.00 40567 12/20/10 SMOKE TESTING 45.00 40568 12/20/10 SMOKE TESTING 45.00 40569 12/20/10 SMOKE TESTING 45.00 40570 12/20/10 SMOKE TESTING 45.00 40571 12/20/10 SMOKE TESTING 45.00 40573 12/20/10 SMOKE TESTING 45.00 40574 12/20/10 SMOKE TESTING 45.00 40575 12/20/10 SMOKE TESTING 45.00 40576 12/20/10 SMOKE TESTING 45,00 40577 12/20/10 SMOKE TESTING 45,00 40579 12/20/10 SMOKE TESTING 45.00 40581 12/20/10 SMOKE TESTING 45.00 990.00 2027148 01/19/11 02639 EWTRUCK &EQUIPMENT 264084 12/29/10 REPAIR PART 280.25 40712 12/29/10 SMOKE TESTING 45.00 40572 12/29/10 SMOKE TESTING 45.00 40578 12/29/10 SMOKE TESTING 45.00 415.25 2027149 01/19/11 04986 FARR,STEVEN 002659 01/18/11 CERTIFICATE RENEWAL 80.00 80.00 2027076 01/12/11 00645 FEDEX 733821802 12/24/10 MAIL SERVICES 6.18 734550530 12/31/10 MAIL SERVICES 4.98 11.16 2026971 01/05/11 03546 FERGUSON WATERWORKS #1082 0365713 12/15/10 INVENTORY 4,157.15 0363048 12/15/10 INVENTORY 3,656.72 0361664 12/14/10 METER REPLACEMENT 3,458.74 0364923 12/15/10 METER PARTS 1,011.38 03649172 12/15/10 INVENTORY 14.68 12,298.67 2027077 01/12/11 03546 FERGUSON WATERWORKS #1082 0365103 12/20/10 METERPARTS 476.60 03649201 12/17/10 WAREHOUSE SUPPLIES 182.05 658.65 2027024 01/12/11 12555 FIELD ASSET SERVICES Ref002411219 01/11/11 US Refund Cst #0000170145 85.67 85.67 2027226 01/26/11 12187 FIRST AMERICAN DATA TREE LLC 900340120 12/31/10 ONLINE MAPS 99.00 99.00 2026972 01/05/11 04066 FIRST CHOICE SERVICES -SD 103042 12/14/10 COFFEE SUPPLIES 391.47 391.47 2027150 01/19/11 04066 FIRST CHOICE SERVICES -SD 105369 12/29/10 COFFEE SUPPLIES 276.97 276.97 2027025 01/12/11 12549 FIRST TEAM REAL ESTATE Ref002411213 01/11/11 US Refund Cst#0000163600 27.18 27,18 Page 6 of 17 OTAYWATERDISTRICT CHECK REGISTER FOR CHECKS 2026950 THROUGH 2027274 RUN DATES 1/5/2011 TO 1/26/2011 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2026973 01105/11 11962 FLEETWASH INC 3444717 12/10/10 VEHICLE WASH 170.04 34444712 12/10/10 VEHICLE WASH 26.16 196.20 2026974 01/05/11 01612 FRANCHISE TAX BOARD Ben241 0985 01/06/11 PAYROLL DEDUCTION 75.00 75.00 2026975 01/05/11 02344 FRANCHISE TAX BOARD Ben2410981 01/06/11 PAYROLL DEDUCTION 150.00 150.00 2027151 01/19/11 01612 FRANCHISE TAX BOARD Ben2411319 01/20/11 PAYROLL DEDUCTION 75.00 75.00 2027152 01/19/11 02344 FRANCHISE TAX BOARD Ben2411315 01/20/11 PAYROLL DEDUCTION 150.00 150.00 2026976 01/05/11 01327 FRANK &SON PAVING INC 0552 12/13/10 ANNUAL PAVING 3,798.30 3,798.30 2027153 01/19/11 07224 FRAZEE INDUSTRIES INC 503040 12/28/10 PAINT 186.10 503041 12/28/10 PAINT 37.22 223.32 2027078 01/12/11 03094 FULLCOURT PRESS 21819 12/21/10 FINANCIAL REPORT 619.88 619.88 2027227 01/26/11 03094 FULLCOURT PRESS 21756 12/02/10 BILL INSERT 1,020.91 1,020.91 2027228 01/26/11 03609 GBA MASTER SERIES INC 61104-1 12/31/10 ASSET MANAGEMENT 4,800.00 4,800.00 2027026 01/12/11 12537 GEORGE MCCORMICK Ref002411201 01/11/11 UB Refund Cst#0000139829 36.79 36.79 2027154 01/19/11 12568 GM OTAYLP 002652 01/13/11 W/O REFUND D0600-010252 895.95 895.95 2027079 01/12/11 00101 GRAINGER INC 9423326835 12/22/10 CANOPY LIGHTS 148.37 148.37 2027080 01/12/11 01576 GRAYBAR ELECTRIC CO INC 951191841 11/29/10 ELECTRIC HARDWARE 39.70 39.70 2027155 01/19/11 01576 GRAYBAR ELECTRIC CO INC 951703503 12/29/10 ETHERNET WALLJACKS 194.06 194.06 2027229 01/26/11 02187 GREENSCAPE 2546 12101/10 LANDSCAPING SERVICES 6,090.00 6,090.00 2027230 01/26/11 09715 GUTIERREZ,JUAN 002670 01/18/11 SAFETY BOOTS 97.85 97.85 2027081 01/12/11 02630 HAAKER EQUIPMENT COMPANY C77806 12/14/10 REPAIR PART 204.44 204.44 2026977 01105/11 00174 HACH COMPANY 7033585 12/15/10 LABORATORY SUPPLIES 448.53 448.53 2027082 01112/11 00174 HACH COMPANY 7029314 12/13/10 APA600 PARTS 2,140.44 7023461 12108/10 APA600 PARTS 1,520.18 7035453 12/16/10 APA600 PARTS 651.95 7039138 12/20/10 APA600 PARTS 314.29 7027388 12/10/10 APA600 PARTS 106.55 7037182 12/17/10 LABORATORY SUPPLIES 10.97 4,744.38 2027231 01/26/11 00174 HACH COMPANY 7054901 01104/11 APA6000 REPAIR 501.26 501.26 Page 7 of 17 OTAY WATER DISTRICT CHECK REGISTER FOR CHECKS 2026950 THROUGH 2027274 RUN DATES 1/5/2011 TO 1/26/2011 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2026978 01/05/11 02629 HANSON AGGREGATES INC 635305 12/16/10 AGGREGATES 615.11 634765 12/10/10 AGGREGATES 121.14 736.25 2027156 01119111 02795 HARTFORD INSURANCE CO,THE ETB2004170910 09/20110 ACCIDENT INSURANCE 750.00 750.00 2027157 01119/11 04472 HECTOR I MARES-COSSIO 70 12131110 CONSULTANT SERVICES 3,600.00 3,600.00 2027027 01/12/11 12556 HELEN STUART Ref002411221 01/11/11 UB Refund Cst#0000171869 17.04 17.04 2027158 01/19/11 08610 HENRY BROS ELECTRONICS INC 13050210 12/26/10 ADDITIONAL SECURITY 20,563.81 13050110 12/26/10 SECURITYADDITION 20,170.00 40,733.81 2027083 01112/11 12564 HERITAGE ESCROW 035010061 REF 01/11/11 CUSTOMER REFUND 128.16 128.16 2027028 01112/11 12559 HOME REPO TOUR Ref002411225 01111/11 UB Refund Cst#0000172213 27.73 27.73 2026979 01/05/11 06540 HORIZON CRANE SERVICE LLC 5733 12/16/10 CRANE 580.00 580.00 2027084 01/12/11 06301 HVAC ENGINEERING INC 5776 11/16/10 HVAC Systems 1,675.00 1,675.00 2027029 01/12/11 12546 INFINITY DIRECT ASSET MGMT Ref002411210 01/11111 UB Refund Cst#0000160195 29.35 29.35 2027232 01/26111 08969 INFOSEND INC 47720 12/31/10 POSTAGE 14,950.40 47719 12/31/10 BILL PRINTING SERVICES 6,156.89 47834 01104/11 INFOSEND EBPP 3,241.20 24,348.49 2027233 01/26/11 02372 INTERIOR PLANT SERVICE INC 36669 12/31/10 PLANT SERVICES 186.00 186.00 2027085 01112111 03250 INTERNATIONAL PUBLIC MGMT 002646 01107/11 REGISTRATION FEES 65.00 65.00 2027234 01126111 03077 JANI-KING OF CALIFORNIA INC SD012100219 12/01/10 JANITORIAL SERVICES 1,062.84 1,062.84 2027030 01112/11 12551 JOE SOUTHWICK Ref002411215 01/11/11 UB Refund Cst #0000168822 42.50 42.50 2027086 01/12/11 01735 JOHNSON,PAMELA 002634 01/04/11 LICENSE RENEWAL 60.00 60.00 2027087 01/12/11 03172 JONES &STOKES ASSOCIATES INC 0075759 12/16/10 P1253 SAN MIGUEL HABITAT MGMT AREA 34,106.05 0075059 11/15/10 ENVIRONMENTAL CONSULTING 13,343.93 0075762 12/16/10 ENVIRONMENTAL CONSULTING 1,488.20 0075764 12/16/10 ENVIRONMENTAL CONSULTING SERVICES 675.00 49,613.18 2027031 01/12111 12536 JOSEPH ARGIER Ref002411200 01/11/11 UB Refund Cst #0000123009 7.33 7.33 2027159 01/19/11 04203 JUST IN TIME COMMUNICATIONS 9301 12/29/10 SATELLITE SERVICE 200.00 200.00 2027088 01/12/11 05109 KEARNY PEARSON FORD 394434 11/16/10 REPAIR PART 87.34 87.34 Page 8 of 17 OTAYWATER DISTRICT CHECK REGISTER FOR CHECKS 2026950 THROUGH 2027274 RUN DATES 1/5/2011 TO 1/26/2011 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2027235 01/26/11 04996 KNOX ATTORNEY SERVICE INC 595238 12/31/10 DELIVERY SERVICES 206.50 206.50 2027160 01119/11 12567 LA FITNESS INTERNATIONAL 002651 01/13/11 WIO REFUND D0044-XX6480 438.85 438.85 2027032 01/12/11 12532 LACRESHEIA LEE Ref002411196 01/11/11 UB Refund Cst #0000078913 23.70 23.70 2027236 01/26/11 06497 LAKESIDE LAND COMPANY 245132 01/05/11 ASPHALT 44.40 44.40 2027237 01/26/11 09511 LAYFIELD ENVIRONMENTAL SYSTEMS E02778 12/31/10 COVER MAINTENANCE 46,475.00 46,475.00 2027238 01/26/11 03607 LEE &RO INC 83725 01/06/11 P2009 -DESIGN OF 36-INCH PIPELINE 8.099.00 8,099.00 2027033 01/12/11 12458 LENDER PROCESSING SERVICES Ref002411220 01/11/11 UB Refund Cst #0000170215 111.03 111.03 2027034 01/12/11 12523 LEONARD FUENTES Ref002411186 01/11/11 UBRefund Cst #0000011038 6.43 6.43 2027035 01/12/11 12522 LEONARDO TALAMAYAN Ref002411185 01/11/11 UB Refund Cst #0000006081 62.81 62.81 2027089 01/12/11 00491 LIGHTHOUSE INC,THE 0052404 10/25/10 SHOP SUPPLIES 306.48 0062764 11/23/10 PARTS 278.40 584.88 2027161 01/19/11 06263 LINTNER,JERRY 002658 01/13/11 SAFETY BOOTS 138.26 138.26 2027090 01/12/11 05220 LOGICALIS INTEGRATION SOLUTION S031506 11/30/10 T&MSUPPORT 1,980.00 1,980.00 2027036 01/12/11 12561 LPS FIELD SERVICES Ref002411227 01/11/11 UB Refund Cst #0000172420 36.43 36.43 2027239 01/26/11 01464 MAG SYSTEMS INC 177195199 01/04/11 AGM INTEGRATOR 217.41 217.41 2027162 01/19/11 00628 MANHATTAN NATIONAL LIFE 002667 01/19/11 VOLUNTARY LIFE INSURANCE 314.98 314.98 2027091 01/12/11 02902 MARSTON+MARSTONINC 2010121 12/01/10 PUBLIC RELATIONS 5,662.50 2010122 12/01/10 BI-NATIONAL DESAL 865.00 6,527.50 2027240 01/26/11 02902 MARSTON+MARSTONINC 201111 01/03/11 PUBLIC RELATIONS 6,223.75 201112 01/03/11 BI-NATIONAL DESAL 562.50 6,786.25 2027092 01/12/11 12469 MASTER SHINE WINDOW WASHING 002632 12/27/10 BATHROOM DETAILING 2,467.49 2,467.49 2026980 01105/11 01183 MCMASTER-CARR SUPPLY CO 72894710 12/15/10 COMBO LOCK 509.24 73086551 12/16/10 FERRULES TOOL 206.63 72866298 12/14/10 TRUCK TOOLS 179.09 894.96 2027093 01/12/11 01183 MCMASTER-CARR SUPPLY CO 73262063 12/20/10 COMBO LOCK 1,267.08 73460283 12/22/10 COMBO LOCK 425.55 73358235 12/21/10 MAINTENANCE SUPPLIES 124.74 1,817.37 2027163 01/19/11 01183 MCMASTER-CARR SUPPLY CO 73597582 12/27/10 FERRULES TOOL 1,411.93 1,411.93 Page 9 of 17 OTAYWATER DISTRICT CHECK REGISTER FOR CHECKS 2026950 THROUGH 2027274 RUN DATES 1/5/2011 TO 1/26/2011 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2027241 01/26/11 01183 MCMASTER-CARR SUPPLY CO 73892869 01/03/11 COMBO LOCK 1,124.92 73892909 01103/11 TOOLS 94.79 1,219.71 2026981 01/05/11 01524 MESA LABORATORIES INC 04094151N 12/14/10 NUSONIC FLOWMETER 13,430.27 13,430.27 2027094 01/12/11 11367 MIGUEL MARTINEZ 255141319REF2 01/10/11 CUSTOMER REFUND 1,411.03 1,411.03 2027037 01/12/11 12525 MIKE RYAN Ref002411188 01/11/11 UBRefund Cst #0000023315 57.64 57.64 2027095 01112/11 00887 MIRAMAR TRUCK CENTER-SAN DIEGO 274297 11/18/10 REPAIR PARTS 382.48 382.48 2027242 01/26/11 00887 MIRAMAR TRUCK CENTER-SAN DIEGO 275490 01/04/11 REPAIR PART 719.23 719.23 2027038 01/12/11 12527 MOTOHISAYAMADA Ref002411190 01/11/11 UB Refund Cst #0000051230 58.59 58.59 2027164 01/19/11 03623 MWH AMERICAS INC 1372893 12/02/10 RWCWRF UPGRADE 35,140.61 35,140.61 2026982 01105/11 03523 NATIONAL DEFERRED COMPENSATION Ben241 0973 01/06/11 DEFERRED COMP PLAN 11,186.55 11,186.55 2027165 01/19/11 03523 NATIONAL DEFERRED COMPENSATION Ben2411307 01/20/11 DEFERRED COMP PLAN 11,186.56 11,186.56 2027039 01/12/11 12554 NESLI IBRAHIM Ref002411218 01111/11 UB Refund Cst #0000169933 19.01 19.01 2026983 01105/11 05494 NEXTEL OF CALIFORNIA INC 901500243051 12/12/10 AIR TRAK 3,696.23 3,696.23 2027243 01/26/11 05494 NEXTEL OF CALIFORNIA INC 901500243052 01/12/11 AIRTRAK 3,709.24 3,709.24 2027096 01/12/11 05519 OCT ACADEMY 002636 01/05/11 CD ROM 110.33 110.33 2027097 01/12/11 03215 O'DONNELL,MICHAEL 002645 01/07/11 TUITION 415.00 415.00 2026984 01105/11 00510 OFFICE DEPOT INC 544419436001 12/10/10 SUPPLIES 77.36 77.36 2027166 01/19/11 00510 OFFICE DEPOT INC 546415985001 12/30/10 OFFICE SUPPLIES 87.39 87.39 2027244 01/26/11 00510 OFFICE DEPOT INC 546756112001 01/04/11 SUPPLIES 67.01 67.01 2027098 01/12/11 05203 OIL FILTER SERVICE 49949 12/16/10 FILTER 383.15 383.15 2027167 01/19111 03149 ON SITE LASER LLC 45158 12115/10 PRINTER SERVICE 368.06 368.06 2026985 01/05/11 03101 OTAY WATER DISTRICT Ben2410975 01/06/11 PAYROLL DEDUCTION -ASSN DUES 742.00 742.00 2027168 01/19/11 03101 OTAY WATER DISTRICT Ben2411309 01/20/11 PAYROLL DEDUCTION -ASSN DUES 742.00 742.00 2027040 01/12/11 12558 PACIFIC COMMERCIAL Ref002411223 01/11/11 UB Refund Cst #0000172061 30.23 30.23 Page 10 of 17 OTAY WATER DISTRICT CHECK REGISTER FOR CHECKS 2026950 THROUGH 2027274 RUN DATES 1/5/2011 TO 1/26/2011 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2027099 01/12/11 01002 PACIFIC PIPELINE SUPPLY 143553 12/22/10 INVENTORY 2,278.53 143616 12/22/10 INVENTORY 184.44 2,462.97 2027169 01/19/11 01002 PACIFIC PIPELINE SUPPLY 143618 12/29/10 INVENTORY 1,167.98 1,167.98 2027041 01/12/11 12550 PACIFIC WEST HOME MTG LLC Ref002411214 01/11/11 UB Refund Cst #0000168785 82.63 82.63 2027042 01/12/11 12533 PAUL III CORRIERE Ref002411197 01/11/11 UB Refund Cst #0000080021 131.00 131.00 2027170 01/19/11 05497 PAYPALINC 10055178 12/31/10 PAYMENTSERVICES 54.10 54.10 2026986 01/05/11 03308 PBS&J 1097545 12/10/10 PROFESSIONAL SERVICES 5,875.00 5,875.00 2027100 01/12/11 03649 PECK S HEAVY FRICTION INC 209419 10104/10 BRAKE PARTS 1,616.96 1,616.96 2027101 01/12/11 03790 PENHALL COMPANY 26517 11/30/10 CUTTING SERVICES 205.00 205.00 2027171 01/19/11 00137 PETTY CASH CUSTODIAN 002654 01/18/11 PETTY CASH 303.60 303.60 2027245 01/26/11 12571 PONCE,GREG 002671 01/18/11 SAFETY BOOTS 137.00 137.00 2027102 01/12/11 01715 PORRAS,PEDRO J 002635 01/06/11 BOOK 118.90 118.90 2026987 01105/11 10929 PORTABLE POWER SYSTEMS INC 119698 12/15/10 UPS BATTERIES 164.25 164.25 2027103 01/12/11 05499 PRAXAIR DISTRIBUTION INC 38147037 11/20/10 GAS RENTAL 463.05 38395195 12/20/10 GAS RENTAL 463.05 926.10 2026988 01/05111 01733 PRICE TRONCONE &12296 11/12/10 SITE RENTAL 3,930.00 3,930.00 2027172 01/19/11 07346 PRIME ELECTRICAL SERVICES INC 8869 10/28/10 ELECTRICAL INSTALLATION 34,114.91 34,114.91 2027246 01/26/11 10662 PROFESSIONAL MAINTENANCE 79156 12/01/10 JANITORIAL SERVICES 2,675.00 2,675.00 2026989 01105/11 06641 PRUDENTIAL OVERALL SUPPLY 30148173 12/16/10 UNIFORMS 328.16 30148172 12/16/10 MATS,TOWELS &SUPPLIES 166.12 30148174 12/16/10 MATS,TOWELS &SUPPLIES 139.83 30147727 12/14/10 MATS,TOWELS &SUPPLIES 102.73 30147726 12/14/10 UNIFORMS 94.28 30148175 12/16/10 UNIFORMS 54.77 885.89 2027104 01/12/11 06641 PRUDENTIAL OVERALL SUPPLY 30149983 12/23/10 UNIFORMS 318.16 30149982 12/23/10 MATS,TOWELS &SUPPLIES 166.12 30149984 12/23/10 MATS,TOWELS &SUPPLIES 139.83 30152472 01/04/11 MATS,TOWELS &SUPPLIES 102.73 30149985 12/23/10 UNIFORMS 58.85 785.69 2027173 01/19/11 06641 PRUDENTIAL OVERALL SUPPLY 30151488 12/30/10 UNIFORMS 330.16 Page 11 of17 OTAYWATER DISTRICT CHECK REGISTER FOR CHECKS2026950 THROUGH 2027274 RUN DATES 1/5/2011 TO 1/26/2011 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 30151487 12/30/10 MATS,TOWELS &SUPPLIES 166,12 30151489 12/30/10 MATS,TOWELS &SUPPLIES 139,83 30150934 12/28/10 MATS,TOWELS &SUPPLIES 102,73 30151490 12/30110 UNIFORMS 55,33 30150933 12/28/10 UNIFORMS 54,31 848.48 2027247 01/26/11 06641 PRUDENTIAL OVERALL SUPPLY 30153114 01/06/11 UNIFORMS 314,16 30153113 01/06/11 MATS,TOWELS &SUPPLIES 171,78 30153115 01/06/11 MATS,TOWELS &SUPPLIES 142,20 30153116 01/06/11 UNIFORMS 55,33 30152471 01/04/11 UNIFORMS 50,31 733,78 2027105 01/12/11 00078 PUBLIC EMPLOYEES RETIREMENT Ben2410969 01/06/11 PERS CONTRIBUTION 142,245,61 142,245,61 2027248 01/26/11 00078 PUBLIC EMPLOYEES RETIREMENT Ben2411303 01/20/11 PERS CONTRIBUTION 141,251,68 141,251,68 2027043 01/12/11 12553 RANCHO BUENA VISTA Ref002411217 01/11/11 UB Refund Cst#0000169819 51.65 51,65 2027044 01/12/11 12557 RANCHO BUENA VISTA REAL ESTATE Ref002411222 01/11/11 UB Refund Cst#0000171952 56,66 56,66 2026990 01/05/11 01890 RECON 42470 12/15/10 P1253 -PREPARATION OF THE SUBAREA PLAN 19,131,19 19,131,19 2027249 01/26/11 09993 REPROHAUS CORP 0000134888 01/03/11 REPROGRAPHIC SERVICES 80,52 80,52 2027174 01/19/11 04542 ROBAK,MARK 70141210 12/31/10 MILEAGE REIMBURSEMENT 16,50 70141110 11/30/10 MILEAGE REIMBURSEMENT 11,00 27,50 2027045 01/12/11 12524 ROBERT STARR Ref002411187 01/11/11 UB Refund Cst #0000018977 30,08 30,08 2027106 01/12/11 06412 ROMERO,TANYA 002644 01/07/11 TUITION 255,81 255.81 2027107 01/12111 00217 RW LITTLE CO INC 100120 11/29/10 RECONDITION 12"ALT VALVE 750,00 750.00 2027175 01/19111 00217 RW LITTLE CO INC 100378 12/21/10 POWDER COATING 800,00 800,00 2027176 01/19/11 05130 SAFARI MICRO INC 194764 12/27/10 1500VA UPS 3,295,13 3,295,13 2027250 01/26/11 02586 SAN DIEGO COUNTY ASSESSOR 2010168 01/03/11 ASSESSOR DATA 125.00 125,00 2027251 01/26/11 10972 SAN DIEGO COUNTY SYMPOSIUM 002678 01/24/11 REGISTRATION FEES 50.00 50,00 2027177 01/19/11 00003 SAN DIEGO COUNTY WATER 7457 12/07/10 SAVE A BUCK PROGRAM 2,359,50 2,359,50 2026991 01/05/11 00121 SAN DIEGO GAS &ELECTRIC 002625 12/28/10 UTILITY EXPENSES 43,499.82 002624 12/20/10 UTILITY EXPENSES 28,796,06 002622 12/27/10 UTILITY EXPENSES 23,943.73 96,239.61 2027108 01/12/11 00121 SAN DIEGO GAS &ELECTRIC 002623 12/23/10 UTILITY EXPENSES 558.06 558,06 Page 12 of17 OTAYWATER DISTRICT CHECK REGISTER FOR CHECKS 2026950 THROUGH 2027274 RUN DATES 1/5/2011 TO 1126/2011 Check#Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2027178 01/19/11 00121 SAN DIEGO GAS &ELECTRIC 002638 01/05/11 UTILITY EXPENSES 55,175.53 002640 12/27/10 UTILITY EXPENSES 13,536.77 002639 12/29/10 UTILITY EXPENSES 3,374.99 72,087.29 2027252 01/26/11 00121 SAN DIEGO GAS &ELECTRIC 002676 01/05/11 UTILITY EXPENSES 3,417.37 3,417.37 2026992 01105/11 12419 SAN DIEGO GROUP,THE OWD201005 06/01/10 PUBLIC AFFAIRS 1,600.00 OWD201006 07101/10 PUBLIC AFFAIRS 1,600.00 OWD200910 11101/09 PUBLIC AFFAIRS 1,600.00 OWD201001 02/01/10 PUBLIC AFFAIRS 1,600.00 OWD201003 04/01/10 PUBLIC AFFAIRS 1,600.00 OWD201004 05101/10 PUBLIC AFFAIRS 1,600.00 9,600.00 2027046 01/12/11 12547 SAN DIEGO REO REALTY Ref002411211 01/11/11 UB Refund Cst #0000161403 9.58 9.58 2027109 01/12/11 12080 SAN DIEGO UNION-TRIBUNE LLC 0010469607 01/04/11 BID ADVERTISEMENT 221.20 0010469603 01/04/11 BID ADVERTISEMENT 214.80 436.00 2027179 01/19/11 07676 SAN MIGUEL FIRE PROTECTION SMG19066 12/29/10 FIRE INSPECTION 394.00 394.00 2027253 01/26/11 07676 SAN MIGUEL FIRE PROTECTION 002631 01/03/11 TEMPORARY LABOR 6,492.80 6,492.80 2027254 01/26/11 05321 SCHIFF ASSOCIATES 06098 12/31/10 CATHODIC PROTECTION 23,676.25 23,676.25 2027255 01/26/11 12333 SCHINDLER ELEVATOR CORPORATION 8102772295 12101/10 ELEVATOR MAINTENANCE 430.00 430.00 2027256 01/26/11 07783 SCRIPPS CENTER FOR EXECUTIVE 20136 12/10/10 EXECUTIVE PHYSICAL 1,604.92 1,604.92 2027047 01/12/11 12545 SD COASTLINE LP Ref002411209 01/11/11 UB Refund Cst #0000159864 114.72 114.72 2027110 01/12/11 05512 SD COUNTY VECTOR CONTROL PROG SD10037111 0 11/29/10 VECTOR CONTROL PROGRAM 570.52 570.52 2027048 01/12/11 12560 SD NATIONAL WILDLIFE REFUGE Ref002411226 01/11/11 UB Refund Cst #0000172376 1,892.03 1,892.03 2027111 01/12/11 01651 SHARP REES-STEALY MEDICAL CTRS 231 12/18/10 PRE-PLACEMENT PHYSICAL 113.00 113.00 2027112 01/12/11 12138 SHELBURNE SHERR COURT 110473 10/13/10 COPY OF TRANSCRIPT 1,166.54 110339 10105/10 COPY OF TRANSCRIPT 761.60 1,928.14 2026993 01105/11 05983 SIEMENS WATER TECHNOLOGIES 7831338 12/13/10 BIOXIDE TP 1,297.82 1,297.82 2027113 01/12/11 05983 SIEMENS WATER TECHNOLOGIES 3252695 12/08/10 W&T MICR02000 4,369.39 4,369.39 2027257 01/26/11 05983 SIEMENS WATER TECHNOLOGIES 3252586 12/27/10 ANALYZER PARTS 1,141.88 1,141.88 2027114 01/12111 00258 SLOAN ELECTRIC COMPANY 015781 01/03/11 MACHINE WORK.672.50 672.50 Page 13 of 17 OTAYWATER DISTRICT CHECK REGISTER FOR CHECKS 2026950 THROUGH 2027274 RUN DATES 1/5/2011 TO 1/26/2011 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2027115 01/12/11 03071 SOCO GROUP INC,THE 430539 12/17/10 MOTOR OIL 1,023.61 1,023.61 2027180 01/19/11 03071 SOCO GROUP INC,THE 432302 12/28/10 MOTOR OIL 978.48 978.48 2027116 01/12/11 03592 SOFTCHOICE CORPORATION 2558915 12/21/10 TOUGHBOOKS 12,708.41 12,708.41 2027049 01/12/11 12542 SONIA TAMAYO Ref002411206 01/11/11 UB Refund Cst #0000154809 94.27 94.27 2027258 01/26/11 03103 SOUTHCOAST HEATING &C45041 12/14/10 AC MAINTENANCE 1,068.00 1,068.00 2026994 01/05/11 03760 SPANKY'S PORTABLE SERVICES INC 862633 11/22/10 TOILET RENTAL 80.06 862563 11119/10 TOILET RENTAL 80.06 862564 11/19/10 TOILET RENTAL 80.06 862565 11/19/10 TOILET RENTAL 80.06 320.24 2027259 01/26/11 03760 SPANKY'S PORTABLE SERVICES INC 868287 01/06/11 TOILET RENTAL 98.25 866606 12/29/10 TOILET RENTAL 80.06 178.31 2026995 01/05/11 00320 STANDARD REGISTER COMPANY 5451136 12/09/10 TONER CARTRIDGE 474.00 474.00 2027181 01/19/11 05968 STAPLES BUSINESS ADVANTAGE 8017311001 12/18/10 SUPPLIES 55.04 55.04 2027117 01/12/11 01560 STATE CHEMICAL MFG CO,THE 94891057 12/23/10 SHOP SUPPLIES 445.80 445.80 2026996 01/05/11 06281 STATE DISBURSEMENT UNIT Ben2410989 01/06/11 PAYROLL DEDUCTION 264.00 264.00 2026997 01105/11 06299 STATE DISBURSEMENT UNIT Ben241 0979 01/06/11 PAYROLL DEDUCTION 237.69 237.69 2026998 01/05/11 06303 STATE DISBURSEMENT UNIT Ben2410983 01/06/11 PAYROLL DEDUCTION 696.46 696.46 2027182 01/19/11 06281 STATE DISBURSEMENT UNIT Ben2411323 01/20/11 PAYROLL DEDUCTION 264.00 264.00 2027183 01/19/11 06299 STATE DISBURSEMENT UNIT Ben2411313 01/20/11 PAYROLL DEDUCTION 237.69 237.69 2027184 01/19/11 06303 STATE DISBURSEMENT UNIT Ben2411317 01/20/11 PAYROLL DEDUCTION 696.46 696.46 2027118 01/12/11 00097 STATE OF CALIFORNIA 440221330111 01/10/11 MAINTENANCE FEE 245.62 245.62 2026999 01/05/11 02261 STATE STREET BANK &TRUST CO Ben2410971 01/06111 DEFERRED COMP PLAN 6,052.56 6,052.56 2027185 01/19/11 02261 STATE STREET BANK &TRUST CO Ben2411305 01/20111 DEFERRED COMP PLAN 6,181.27 6,181.27 2027000 01/05/11 01460 STATE WATER RESOURCES SW0023804 10/27/10 STORMWATER FEE INDEX #081388 491.00 491.00 2027186 01/19/11 01460 STATE WATER RESOURCES WD0049468 11/16/10 ANNUAL FEE INDEX #114528 1,755.00 1,755.00 2027260 01/26/11 11460 STEELE CANYON GOLF CLUB 711680111 01/26/11 RECOGNITION EVENT 6,408.03 6,408.03 Page 14 of 17 OTAYWATER DISTRICT CHECK REGISTER FOR CHECKS 2026950 THROUGH 2027274 RUN DATES 1/5/2011 TO 1/26/2011 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2027261 01/26/11 09584 STEPHEN MOYERS &002673 01/24/11 EASEMENTACQUISITION 5,200.00 5,200.00 2027262 01/26/11 12572 STEPHEN MOYERS &002674 01/24/11 SETTLEMENT 9,800.00 9,800.00 2027119 01/12/11 11749 STEPHEN V MCCUE ESQ 002641 12/13/10 LEGAL SERVICES 18,217.50 18,217.50 2027187 01/19/11 11749 STEPHEN V MCCUE ESQ 002666 01/14/11 LEGAL SERVICES 31,717.50 31,717.50 2027120 01/12/11 12565 SUSAN GUZZETTA &CO 002647 01/07/11 WELLNESS PROGRAM 250.00 250.00 2027050 01/12/11 12541 SYLVIA ARREOLA Ref002411205 01/11/11 UB Refund Cst #0000153895 41.99 41.99 2027121 01/12/11 02799 TARULLI TIRE INC -SAN DIEGO 20045800 12/23/10 TIRE SERVICE 567.02 20045474 11/12/10 TIRE SERVICE 233.21 20045586 11/24/10 TIRE SERVICE 201.30 20045801 12/23/10 TIRE SERVICE 197.04 20045585 11/24/10 TIRE SERVICE 21.53 20045607 11/29/10 TIRE SERVICE 21.53 20045678 12/08/10 TIRE SERVICE 17.50 1,259.13 2027188 01/19/11 02799 TARULLI TIRE INC -SAN DIEGO 20045860 12/30/10 TIRE SERVICE 938.06 938.06 2027263 01/26/11 02799 TARULLI TIRE INC -SAN DIEGO 20045876 01/05/11 TIRE SERVICE 358.99 358.99 2027264 01/26/11 12474 TERRYBERRY COMPANY LLC 864589 01/20/11 SERVICE AWARD 832.43 832.43 2027122 01/12/11 11289 TLC STAFFING IVC050000044341 12/17/10 CWA INTERN 270.00 IVC05000004496 12/30/10 CWA INTERN 189.00 459.00 2027189 01/19/11 04977 T-MOBILE 4150860450111 01/05/11 CELL PHONE SERVICES 247.38 247.38 2027123 01/12/11 12017 TRAC 002649 11130110 CONSULTING FEES 2,210.75 2,210.75 2027124 01/12/11 03074 TRAFFIC CONTROL SERVICE INC 1006330 12/17/10 TRAFFIC SIGNS 703.61 703.61 2027190 01/19/11 12570 TRI TECH REPROGRAPHICS 116037 10/20/10 PHOTOCOPYING SERVICES 2,701.80 116353 11/08110 PHOTOCOPYING SERVICES 35.43 2,737.23 2027265 01/26/11 12084 TRIACTIVE INC 11258 01/04/11 SOFTWARE SUPPORT 46.98 46.98 2027125 01/12/11 00427 UNDERGROUND SERVICE ALERT OF 1220100444 12101/10 UNDERGROUND ALERTS 213.00 213.00 2027126 01/12/11 03563 UNDERGROUND UTILITIES INC 127175 12/23/10 WATER METER BOX CLEANOUT MAINTENANCE 1,608.75 1,608.75 2027001 01/05/11 08262 UNITED RENTALS NORTHWEST INC 91302565001 12/15/10 CONCRETE 140.29 90303005001 12/15/10 CONCRETE 20.66 160.95 2027127 01/12/11 08262 UNITED RENTALS NORTHWEST INC 91338937001 12/17/10 CONCRETE 224.30 Page 15 of 17 OTAYWATER DISTRICT CHECK REGISTER FOR CHECKS 2026950 THROUGH 2027274 RUN DATES 1/5/2011 TO 1/26/2011 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 91342350001 12/17110 CONCRETE 134.58 358.88 2027002 01/05/11 05417 UNITED STATES DEPARTMENT Ben2410987 01/06/11 PAYROLL DEDUCTION 100.00 100.00 2027191 01/19/11 05417 UNITED STATES DEPARTMENT Ben2411321 01/20/11 PAYROLL DEDUCTION 100.00 100.00 2027128 01/12/11 00350 UNITED STATES POSTAL SERVICE 10433951 01/10/11 POSTAGE MACHINE 2.100.00 2,100.00 2027192 01/19/11 07662 UNITEDHEALTHCARE SPECIALTY 110190000081 02/01/11 BASIC L1FE/AD&D &SUPP LIFE INS 5,713.41 5,713.41 2027193 01/19/11 03212 UNUM LIFE INSURANCE Ben2411299 01/20/11 CONTRIBUTION TO LTD 5,946.54 5,946.54 2027003 01/05/11 07674 US BANK CORPORATE PAYMENT 002621 11/22/10 DISTRICT EXPENSES 9,140.52 9,140.52 2027129 01/12/11 07674 US BANK CORPORATE PAYMENT 002642 11/22/10 DISTRICT EXPENSES 1.486.94 1,486.94 2027194 01/19/11 07674 US BANK CORPORATE PAYMENT 002657 12/22/10 DISTRICT EXPENSES 11,006.72 002656 10/22/10 DISTRICT EXPENSES 7,461.88 002655 11/22/10 DISTRICT EXPENSES 3,149.07 002662 12/22/10 DISTRICT EXPENSES 704.97 22,322.64 2027266 01/26/11 07674 US BANK CORPORATE PAYMENT 002677 12/22/10 DISTRICT EXPENSES 1,532.50 1,532.50 2027195 01/19/11 06829 US SECURITY ASSOCIATES INC 68278 11/30/10 SECURITY SYSTEM 417.30 417.30 2027267 01/26/11 06829 US SECURITY ASSOCIATES INC 106421 12/31/10 SECURITY SYSTEM 307.55 307.55 2027268 01/26/11 08028 VALLEY CONSTRUCTION MANAGEMEN-SD100110 12/31/10 INSPECTION SERVICES 3,480.00 3,480.00 2027004 01/05/11 01095 VANTAGEPOINT TRANSFER AGENTS Ben2410977 01/06/11 DEFERRED COMP PLAN 7,230.02 7,230.02 2027005 01/05/11 06414 VANTAGEPOINT TRANSFER AGENTS Ben2410967 01/06/11 401A PLAN 14,247.77 14,247.77 2027196 01/19/11 01095 VANTAGEPOINT TRANSFER AGENTS Ben2411311 01/20/11 DEFERRED COMP PLAN 7,323.74 7,323.74 2027197 01/19/11 06414 VANTAGEPOINT TRANSFER AGENTS Ben2411301 01/20/11 401A PLAN 14,373.52 14,373.52 2027269 01/26/11 03329 VERIZON WIRELESS 0935111860 12/21/10 WIRELESS SERVICES 8,198.41 8,198.41 2027051 01/12/11 12528 VICKI MILLER Ref002411191 01/11/11 UB Refund Cst #0000057344 31.50 31.50 2027052 01/12/11 12515 VICTORIA NAVARDAUSKAITE Ref002411224 01/11/11 UB Refund Cst #0000172071 24.15 24.15 2027198 01/19/11 12520 WACHOVIA MORTGAGE/WELLS FARGO Ref002407431 07/27/10 UB Refund Cst #0000162414 38.56 Ref002408146 08/24/10 UB Refund Cst #0000162414 26.65 65.21 2027006 01/05/11 12027 WALTCOMM 201012150TW 12/15/10 SECURITY RE-WORK 3,157.75 3,157.75 Page 16 of 17 OTAYWATERDISTRICT CHECK REGISTER FOR CHECKS 2026950 THROUGH 2027274 RUN DATES 1/5/2011 TO 1/26/2011 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2027270 01/26/11 02700 WATER CONSERVATION GARDEN 5 01/01/11 OPERATING COSTS 25,047.00 25,047.00 2027199 01/19/11 03781 WATTON,MARK 002665 01/04/11 TRAVEL EXPENSE 104.00 104.00 2027271 01/26/11 11692 WEST COAST IND COATINGS INC 9 01/05/11 RESERVOIR COATING 80,190.00 80,190.00 2027007 01/05/11 00125 WESTERN PUMP INC 0094572IN 11/29/10 APCD TESTING 1,137.50 0094571 IN 11/29/10 APCD TESTING 781.25 1,918.75 2027272 01/26/11 00125 WESTERN PUMP INC 00954761N 12/20/10 APCD TESTING 400.00 00954751N 12/20/10 APCD TESTING 400.00 800.00 2027130 01/12/11 03692 WESTIN ENGINEERING INC 138 12/21/10 PROJECT CONSULTING 48,517.82 48,517.82 2027131 01/12/11 02160 WOODS,MARVIN 002633 01/05/11 SAFETY GLASSES 223.96 223.96 2027200 01/19/11 12569 YI FEI CHEN 002653 01/13/11 WIO REFUND D0813-090082 213.74 213.74 2027053 01/12/11 12535 ZAKEYA BLANKENSHIP Ref002411199 01/11/11 UB Refund Cst#0000121942 50.08 50.08 GRANDTOTAL 1,634,425.34 1,634,425.34 Page 17 of17