HomeMy WebLinkAbout11-13-08 Board PacketOTAY WATER DISTRICT
BOARD OF DIRECTORS MEETING
DISTRICT BOARDROOM
2554 SWEETWATER SPRINGS BOULEVARD
SPRING VALLEY,CALIFORNIA
THURSDAY
November 13,2008
3:30 P.M.
AGENDA
1.ROLL CALL
2.PLEDGE OF ALLEGIANCE
3.APPROVAL OF AGENDA
4.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
5.APPROVAL OF THE MINUTES OF THE REGULAR MEETINGS OF JUNE 10 AND
AUGUST 6,2008
CONSENT CALENDAR
6.ITEMS TO BE ACTED UPON WITHOUT DISCUSSION,UNLESS A REQUEST is
MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DiSCUSS A PAR-
TICULAR ITEM:
a)APPROVE AMENDMENTS TO TWO (2)SEPARATE UTILITY AGREE-
MENTS (NOs.31759 AND 31921)WITH THE CALIFORNIA DEPARTMENT
OF TRANSPORTATION
b)APPROVE CHANGE ORDER NO.1 TO THE EXISTING CONTRACT WITH
ARB,INC.FOR THE CONSTRUCTION OF THE 20-INCH LANE AVENUE
CONVERSiON PROJECT IN AN AMOUNT NOT-TO-EXCEED $78,938
c)APPROVE AN INCREASE TO THE FiSCAL YEAR 2009 BUDGET OF
$80,000 FOR THE RALPH W.CHAPMAN WASTEWATER RECYCLING
FACILITY -REVERSE OSMOSIS BUiLDING AND METER SHOP RE-
MODEL PROJECT REVISING THE PROJECT BUDGET FROM $495,000
TO $575,000
1
I
I
I~.
I
AUTHORIZE NEGOTIATIONS WITH RANCHO SAN DIEGO INDUSTRIAL
CENTER,LLC FOR THE PURCHASE OF VACANT LAND IDENTIFIED AS
APN NO.505-230-52-00 AND APPROVE AN AMENDMENT TO THE FIS-
CAL YEAR 2009 CIP BUDGET TO ADD $600,000 TO FUND CIP P2479,
OPERATIONS YARD PROPERTY ACQUISITION,TO PROVIDE FUNDING
FOR THE PURCHASE AND IMPROVEMENT OF THE SUBJECT PROP-
ERTY
f)
e)
d)ADOPT RESOLUTION NO.4131 OF THE BOARD OF DIRECTORS OF
THE OTAY WATER DISTRICT APPROVING THE ANNEXATION TO OTAY
WATER DISTRICT IMPROVEMENT DISTRICT NO.18 OF THOSE LANDS
DESCRIBED AS "ROBINSON SEWER ANNEXATION"[FILE NO.0210-
20.306]
APPROVE AND RATIFY THE DISTRICTS PARTICIPATION IN THE STATE
OF CALIFORNIA PURCHASE CARD PROGRAM MASTER SERVICE
AGREEMENT (MSA);RATIFY THE GENERAL MANAGER'S APPROVAL
OF ADDENDUM TWO (2)TO MSA 5-06-99-01 ADDING THE OTAY WATER
DISTRICT AS A PARTICIPATING AGENCY;AND,AUTHORIZE THE GEN-
ERAL MANAGER TO EXECUTE FUTURE AGREEMENTS AND OTHER
REQUIRED DOCUMENTATION,INCLUDING ADDENDUMS TO MSA 5-06-
99-01,AS REQUIRED TO CONTINUE THE DISTRICTS PARTICIPATION
IN THE STATE OF CALIFORNIA PURCHASE CARD PROGRAM
ACTION ITEMS
7.ENGINEERING AND WATER OPERATIONS
a)APPROVE THE WATER SUPPLY ASSESSMENT REPORT DATED OC-
TOBER 2008 FOR THE PARAGON MANAGEMENT COMPANY OTAY
BUSINESS PARK DEVELOPMENT PROPOSAL AS REQUIRED BY SEN-
ATE BILL 610 (PEASLEY)
8.ADMINISTRATIVE SERVICES,FINANCE AND INFORMATION TECHNOLOGY
a)ACCEPT THE DISTRICTS AUDITED FINANCIAL STATEMENTS,INCLUD-
ING THE INDEPENDENT AUDITORS'UNQUALIFIED OPINION,FOR THE
FISCAL YEAR ENDING JUNE 30,2008 (CUDLlP)
b)PROHIBIT THE PURCHASE OF BOTTLED WATER WITH DISTRICT RE-
SOURCES
9.BOARD
a)DISCUSSION OF 2008 AND 2009 BOARD MEETING CALENDARS
2
INFORMATIONAL ITEMS
10.THESE ITEMS ARE PROVIDED TO THE BOARD FOR INFORMATIONAL PUR-
POSES ONLY.NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA
ITEMS.
a)INFORMATIONAL REPORT ON THE REQUEST FROM SYCUAN BAND
OF THE KUMEYAAY NATION FOR ANNEXATION TO THE OTAY WATER
DISTRICT,SAN DIEGO COUNTY WATER AUTHORITY,METROPOLITAN
WATER DISTRICT, AND LOCAL AGENCY FORMATION COMMISSION
FOR WATER (SPECIFIED PARCELS ONLY)AND SEWER (CHARLES)
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 -PENDING 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
(II)CITY OF BANNING v.JAMES JONES CO.,COUNTY OF LOS AN-
GELES,SUPERIOR COURT,CASE NO.BC 321513
b)CONFERENCE WITH LEGAL COUNSEL -POTENTIAL LITIGATION [GOV-
ERNMENT CODE §54956.9(b)]
1 CASE
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
3
All items appearing on this agenda,whether or not expressly listed for action,may be
deliberated and may be subject to action by the Board.
The Agenda,and any attachments containing written information,are available at the
District's website at www.otaywater.gov.Written changes to any items to be considered at
the open meeting,or to any attachments,will be posted on the District's website.Copies
of the Agenda and all attachments are also available through the District Secretary by
contacting her at (619)670-2280.
If you have any disability which would require accommodation in order to enable you to
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 November 7,2008,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 November 7,2008.
4
AGENDA ITEM 5-
MINUTES OF THE
BOARD OF DIRECTORS MEETING OF THE
OTAY WATER DISTRICT
June 10,2008
1.The meeting was called to order by Vice President Lopez at 3:31 p.m.
2.ROLL CALL
Directors Present:Bonilla,Breitfelder,Lopez and Robak
Directors Absent:Croucher (due to illness)
Staff Present:General Manager Mark Watton,Ass!.GM Administration
and Finance German Alvarez,Ass!.GM 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 lis!.
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,Lopez and Robak
None
None
Director Croucher
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
Students (Daniel Wagner,Ben Wagner,Matthew Gale and Lucas Vanwinkle
[Lucas was unable to attend today's meeting])from Oak Grove Middle School
and the Steele Canyon High School attended today's meeting to present their
presentation on "Water Wars"which won the State-wide National History Day
competition.The students will be one of California's representatives at the
national competition to be held at the University of Maryland this coming
weekend.
1
Water Wars depicts the dispute for water between the City of Los Angeles and
the Owens Valley.The student's had interviewed the District's General Manager,
Mark Watton,to get a basic understanding of the conflicts and compromises over
water.They also interviewed a rancher,a farmer,Ms.Catherine Mulholland and
visited the Owens Valley.Ms.Mulholland is the granddaughter of William
Mulholland (who was head of the Los Angeles Dept.of Water and Power during
the time of California's water conflict).She is an accomplished educator and
author of her and her grandfather's work in the subject of water rights.
The student's presented their video which portrayed the conflict in the early
1900's between Los Angeles and the Owens Valley and how the conflict shaped
California water policy.
The student's thanked the board for allowing them to present their project.They
indicated that they had been working on the project since the beginning of the
school year and had found during their research that water is much more
complex than they had expected.Director Robak congratulated the students on
their success at the state level and wished them good luck at the national
competition.He stated that their project was very timely with today's water
circumstances.Director Lopez asked that they let the District know how they did
at the national competition and also wished them good luck.
6.APPROVAL OF MINUTES OF THE REGULAR BOARD MEETING OF
FEBRUARY 6,2008 AND MARCH 5,2008
District Secretary Susan Cruz indicated that there is an amendment to the
February 6,2008 meeting minutes on page 13,the first paragraph under item 11,
Directors'Reports /Requests.She noted that the first sentence of the paragraph
which reads,"Director Breitfelder reported that at the County Water Authority...,"
and stated that "County Water Authority"should be changed to "Council of Water
Utilities."
Dir Breitfelder:One additional clarification sir.At the top of page 6 on February
6,I would just like to clarify that to the extent that it could be
interpreted that Dir Robak surrendered jurisdiction of the OPEB
Trust from the Finance Committee.To the extent that it could
be interpreted,I want it clear that he was speaking from/of his
own opinion as opposed from the committee itself.
Dir Robak:I'm sorry,could you restate that?I'm sorry I didn't...
Dir Lopez:On top of number...am I looking at page 6?
Dir Breitfelder:Page 6,second paragraph.
2
Dir Lopez:Reading the paragraph ..."The motion was withdrawn as the
committee chair.Director Robak.indicated that he was
comfortable with the information he had received during
discussions at the Finance.Administration and he did not feel it
required further discussion from the committee."...Is that the
one you're...
Dir Breitfelder:Yes,yes.I just wanted it noted that that was a personal opinion
as opposed to the opinion of the committee as a whole.
Dir Lopez:I can't see where that would be misconstrued.Are you ok with
that statement?We'll move on then?
Dir Robak:Yes,he was the only other one there,so....
Dir Lopez:So do we have a motion to approve the minutes for February 6
and March 5?Do I have a motion?
Director Sreitfelder indicated that he 'Nould also like to clarify in the February 6,
2008 minutes,Director Robak's statement on page 6,second paragraph,'/lith
regard to the committee's discussion on the funding of the OPES liability.He
indicated that he 'Nished it noted that Director Robak's statement indicating that
the committee was comfortable with the information it had received during
discussions at the Finance,Administration and Communications Committee was
his personal opinion and not that of the committee as a whole.Director Robak
indicated that he was comfortable VIlith an amendment to the minutes that reflects
this change.
A motion was made by Director Breitfelder,seconded by Director Bonilla and
carried with the following vote:
Ayes:
Noes:
Abstain:
Absent:
Directors Bonilla,Breitfelder,Lopez and Robak
None
None
Director Croucher
to approve the minutes of the regular board meeting of February 6,2008,with
the noted amendments,and March 5,2008.
CONSENT CALENDAR
7.ITEMS TO BE ACTED UPON WITHOUT DISCUSSION,UNLESS A REQUEST
IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A
PARTICULAR ITEM:
Director Breitfelder requested that item 6e,ADOPT ORDINANCE NO.516
AMENDING SECTION 39,DROUGHT RESPONSE CONSERVATION
3
PROGRAM,FORMERLY KNOWN AS "CONSERVATION AND WATER
SHORTAGE RESPONSE PROGRAM,"OF THE DISTRICT'S CODE OF
ORDINANCES,be pulled for discussion.
A motion was made by Director Robak,seconded by Director Lopez and carried
with the following vote:
Ayes:
Noes:
Abstain:
Absent:
Directors Bonilla,Breitfelder,Lopez and Robak
None
None
Director Croucher
to approve the following consent calendar items:
a)APPROVE CHANGE ORDER NO.6 TO THE EXISTING CONTRACT
WITH ZONDIROS CORPORATION FOR THE CONSTRUCTION OF THE
CACTUS ROAD UTILITY RELOCATION PROJECT IN AN AMOUNT NOT
TO EXCEED $54,872
b)ADOPT ORDINANCE NO.517 TO AMEND CODE OF ORDINANCE
SECTION 2.01-E,AUTHORITY OF THE GENERAL MANAGER,OF THE
DISTRICT'S CODE OF ORDINANCE
c)APPROVE THE ISSUANCE OF EIGHT (8)PURCHASE ORDERS TO
VARIOUS VENDORS FOR A SOFTWARE MAINTENANCE
AGREEMENT TO INCLUDE ANNUAL SUPPORT AND CONSULTING
SERVICES;GIS SOFTWARE LICENSES AND SOFTWARE
INTEGRATION SERVICES;GBA SOFTWARE LICENSES AND
INTEGRATION CONSULTING WORK;TELEPHONE AND INTERNET
SERVICES;CELL PHONE AND WIRELESS AIR TIME;7x24 REMOTE
NETWORK MONITORING SERVICES;THE MICROSOFT ENTERPRISE
AGREEMENT FOR ALL MICROSOFT LICENSES AND AN ADDITIONAL
LICENSE FOR THE GIS SERVERS;AND IMPLEMENTATION
SERVICES TO DESIGN,IMPLEMENT AND INSTALL A WIRELESS
BROADBAND CONNECTION TO THE TREATMENT PLANT;TOTALING
$813,000 OF WHICH $648,000 WILL BE FUNDED THROUGH THE
PROPOSED FISCAL YEAR 2009 OPERATIONS BUDGET AND
$165,000 FROM THE PROPOSED CAPITAL BUDGET
d)APPROVE A CONTRACT WITH INFOSEND TO PROVIDE MONTHLY
BILL PRINTING,BILL INSERTION,AND MAILING SERVICES FOR THE
DISTRICT'S WATER AND SEWER BILLS
General Manager Watton noted with regard to item 6e that the Finance,
Administration and Communications Committee had originally recommended that
it be presented to the full board as an action item.He apologized that it was
mistakenly placed on the consent calendar.
4
Director Lopez indicated that due to the time that the board wishes to devote to
the budget,he would like to move the discussion of item 6e (note below)to follow
the budget workshop.The board concurred.
e)ADOPT ORDINANCE NO.516 AMENDING SECTION 39,DROUGHT
RESPONSE CONSERVATION PROGRAM,FORMERLY KNOWN AS
"CONSERVATION AND WATER SHORTAGE RESPONSE PROGRAM,"
OF THE DISTRICT'S CODE OF ORDINANCES
WORKSHOP
8.ADOPT RESOLUTION NO.4124,APPROVING THE FISCAL YEAR 2008-2009
OPERATING AND CAPITAL BUDGETS;APPROVE FUND TRANSFERS FOR
POTABLE,RECYCLED,AND SEWER;AND DIRECT STAFF TO PROCEED
WITH THE RATE STUDY AND PROPOSITION 218 HEARING AND NOTICES
Chief Financial Officer Joe Beachem indicated that the adoption of the budget is
the next step following the adoption of the Strategic Plan.He stated that the
budget supports the direction of the District that is outlined in the Strategic Plan.
He reviewed the agenda for the budget workshop:
•Review the Rate Model
•Implementation of the Rate Changes for Potable,Recycled and Sewer
•Review the CIP Budget
•Review the Operating Budget
•Summarize Recommendations
Chief Financial Officer Beachem indicated that the District is facing some serious
budget challenges which includes:
•CWA and MWD Rate Increase Projections are substantially higher than
last year
o The projected rate increased last year for 2009 was 6.4%,
however,the increase is expected to be 10.3%
o CWA indicates that they are projecting the rate increase for 2010
as 3.4%.Staff feels,however,that it would be more prudent to
plan on a 7.9%increase.
•Economic and Housing Slowdown
o Meter Sales are dropping and are expected to be 29%of sales
from 3 years ago
•This is a significant reduction in annexation revenues which
fund the District's operating budget and a significant
reduction of capacity fees which fund the District's
expansion projects
• Growth will stay relatively flat until 2012 when it is projected
that the housing market will begin to picking-up
5
•Interest Rate Cuts (from 5.3%to 3%)
o Due to cuts,the District will have loss of interest revenue
•Reduced Water Sales
o A 5.5%increase is built into the rate model due to decreased water
sales.In addition,staff is building in up to a 15%reduction in
water sales due to conservation and possible water drought
scenarios.
Chief Financial Officer Beachem stated that without these challenges,the District
would be looking at a rate increase of 5.4%which is what staff had projected in
the previous year.Director Bonilla inquired if it was fair to include the
conservation effect as a cause of the rate increase as the District will not buy as
much water due to conservation.Chief Financial Officer Beachem explained that
it is the net change when evaluating the cost reduction,revenue reduction and
power reduction (net impact after subtracting the reduced expense).He noted
that water sales is a vast majority of the District's revenues and water purchases
are only half of expenses (for each dollar of less revenue,the District looses $.50
of each dollar of expense).
He indicated that staff must look at ways to mitigate the impact of these
challenges to rates.He stated that staff recognized early on the effect that the
slowdown in growth was having on the District.He stated in 2008,staff began
re-evaluating and reducing the level of CIP expenditures and as a result,the
2008 CIP expenditures to 75%of the budgeted expenditures.He indicated for
2009,staff again re-evaluated the CIP and was able to reduce the CIP budget by
$7.5 million.He stated that these reductions have had a significant effect in
reducing the impact of the above challenges.Staff also re-evaluated and
reduced the operating budget expenses,bringing down the Fulltime Equivalent's
(FTE)by 4 positions (from 173 to 169).Further,program and discretionary
spending were cut by nearly $1 million,legal expenditures are projected to come
down by $750,000,and water purchase will be reduced (corresponding with
lower water sales).
Chief Financial Officer Beachem indicated that staff also uses fund transfers and
debt to minimize rates.He stated that as long as there are funds available and
the transfers are in compliance with the District's reserve policy,staff has
recommended approval of transfers.He indicated that by doing so it lessens the
need for debt and rate increases.He lastly noted that staff is proposing that the
District utilize temporary available sewer funds for CIP's on the potable side.He
stated that the sewer funds will be replenished in years 4,5 and 6 per the rate
model.He indicated by doing this,the District will be able to hold off the
issuance of debt by eight months,giving time for the rate increases to strengthen
some of the financial ratios that will be affected by the four budget challenges
and allowing the District to smooth out the projected rate increases.Chief
Financial Officer Beachem noted that even with these actions,the District will
have significant rate increases.
6
He presented a slide showing the District's historical rate increases of 3.9%in
2005 to 5.4 in 2007.He stated even with the efforts that management has made
to reduce expenses,a rate increase of 15.4%will be required to balance the
budget,maintain financial ratios and reserves.Staff,however,does not feel that
a rate spike of 15.4%is responsible to the board or ratepayers and has
determined ways to smooth the rate increase over three years with a 9.7%
increase in 2009 and 2010,and a 9.1 %increase in 2011.He stated the reserve
levels would still be held at or above target,however,the lower revenues
collected under the smoothing scenario in the first year will cause the debt
coverage ratio to drop a little.In discussions with the District's Financial Advisor,
she indicated that because the District demonstrates strength in other areas,the
drop in the first year of the rate smoothing scenario will not affect the District's
credit rating.
Director Breitfelder inquired with regard to the pie chart (see attached
presentation,slide no.5),it seems to indicate that 0%of the rate increase can be
attributed to internal cost and that the increase is mainly due to external factors.
Chief Financial Officer Beachem indicated that it may seem that way,but what
staff has reflected in the chart is the impact of the four increases (four
challenges)to the rate model as they are new.If the challenges are not
included,the District would be back to the 5.4%increase staff had projected last
fiscal year.
He noted that the financial ratios are just one aspect of the District's overall credit
rating and financial strength.He presented a slide showing a list of items that
are also attributed to the District's AA-credit rating (see attached presentation,
slide no.10).He also noted that by using the sewer reserves,the District is able
to push out the debt issuance to 2010 and by that time,the financial ratios would
have been rebuilt and the District will be in a very strong position as it returns to
the bond markets.
He reviewed the debt coverage ratio and its levels over the next six years (see
presentation,slide no.11).He noted that the operational debt coverage ratio,
under the smoothing scenario,climbs from 96%in 2009 (below target of 125%),
to the target level in 2012 at 151 %,and continues to climb to 177%in 2014.He
noted that the presented operational ratio is based on "no growth,"that is,it
ignores all capacity and annexation fees.
Director Bonilla inquired what is it that the District is trying to achieve.He
indicated that he felt that the District should do whatever is needed to assure that
it meets its financial obligations and maintains its financial strength.If it takes a
20%increase in rates,then that is what should be done.It was discussed that
the District can certainly implement the rate increase in one year or,alternatively,
use the rate smoothing model as it has in the past.It was indicated that the
District has a strong financial position and would not impact its financial strength
if the rate smoothing model was utilized (spreading rate increases over a period
7
of time).He noted that the District,this year,is still the eighth lowest in cost
among the member agencies.
Director Bonilla indicated that he would like staff to present the best case
scenario.He indicated that he needed to know where the District stands before
he can make his decision.If the District needs to implement a 15%increase to
maintain its financial strength and credit rating,then that is what the board should
do.
Director Breitfelder inquired if the District increased rates by 15%what is the
financial impact.Chief Financial Officer Beachem indicated that it puts the
District at a slightly stronger position;the "no growth"debt coverage ratio would
be at 125%(at target).However,if the District utilized the rate smoothing model
(9.7%increases)with the debt coverage ratio dropping a little,the District's credit
rating still would not be impacted.
Chief Financial Officer Beachem further indicated that with the proposed budget,
staff is able to successfully level the rates,maintain the financial strength of the
District,support the Strategic Plan objectives,provide a high level of service to
customers and maintain reserves at target levels per the approved Reserve
Policy.He stated that today is not about requesting approval of the rate
increases,but rather the budget itself and the reserve transfers.He indicated
that while it is very important to understand the rates that support the budget,the
district does need to go through the Proposition 218 hearing process and a
process to determine the rates for each customer type.Staff is looking at
drought stage pricing,rate simplification and how they will be implemented.
He stated that the sewer rate increase will be greater than expected at 4.6%.He
indicated that the increase is not due to a change in revenues or expenses,but
because of a philosophical change.He stated that the sewer rate was set at
1.7%last year to draw down a portion of the sewer general fund surplus.At this
time,staff feels that the surplus should be held until after the Sewer System
Management Plan Study is completed.At that time,staff will know what other
sewer facilities will be required and where the reserves may be needed.In order
to maintain the reserves,a moderate increase of 4.6%is being proposed to keep
revenues on par with expenses.
Chief Financial Officer Beachem also reviewed the reserves and noted that they
totaled $85.9 million at the beginning of the six year rate model and will hold fairly
steady at $87.2 million by the end of the six years.He noted that the target
levels also hold fairly consistent from $62 to $64 million over the six year period.
He explained that the funds that are over target will be drawn down as
construction of facilities uses these funds up.He stated the surplus is primarily
due to the temporary sewer fund surplus and once the sewer system plan is
complete,staff will be in a better position to recommend what to do with the
sewer reserves.He noted that debt will be utilized to fund expansion and
replacement projects and $28 million would be issued in 2010,$25.4 million in
8
2012,and $21.6 million in 2014.He stated that in addition to debt financing of
projects,the District's Reserve Policy outlines the use of reserves to support
construction and maintain the reserves at or above target.He stated that the
presented slide summarizes the transfers that staff is requesting (slide no.17).
He summarized that staff is recommending a rate increase of 9.7%for both
potable and recycled and a 4.6%increase for sewer.He indicated that
additionally,the District has future uncertainties with the following issues which
will also have impact to the bUdget:
•SD17,the connection with the City of San Diego-it is not known at this
time how the connection will affect the District
•Asset Management Plan-Indicates how future facilities might change in
the District's CIP
•City of San Diego's Reclaimed Water Rate-it is not known what the city
will do with the rate
•Power and Fuel Cost
•Sewer System Management Plan
Director Bonilla inquired that it was his understanding that the board was not
voting on the rate increases.Chief Financial Officer Beachem indicated that that
was correct,staff is requesting that the board approve the budget and the
reserve transfers.General Manager Watton indicated that if the board approves
the proposed spending plan for FY 2008-2009,then staff would prepare for
presentation to the board the rate increases that would be required to support the
approved spending plan.At this time,the proposed rate increase is expected to
be 9.7%for potable and recycled;and 4.6%for sewer.However,if the board
indicated that they would prefer increases of 15.4%in FY 2008-2009,8%the
following year,and 5.2%the year after,then staff would need to modify some of
the fund transfers and would return to the board in November with the proposed
Proposition 218 notices.
Director Breitfelder indicated that he did not feel that the board had enough time
over the weekend to review the budget materials.He indicated that he,thus far,
likes what he has seen,but just has not had enough time to review the details of
the budget.
Director Bonilla indicated that he was uncomfortable with regard to the rate
scenarios and would like more information about the rates.Chief Financial
Officer Beachem indicated that all factors have been built into the District's rate
model and he felt that staff was being very prudent.The proposed increase of
9.7%is staffs'best estimate.
District Secretary Cruz indicated that a tentative meeting has been calendared
for June 23,2008 should the budget not be adopted at today's meeting and a
follow-up meeting was required.She stated that all directors have indicated that
they would be available on June 23 for a follow-up meeting.
9
Director Bonilla indicated that at the June 23 meeting he would like a chart
showing how the District's rate compares to other local member agencies.He
indicated that he would also like information on the District's cash and credit
position with the various rate increase scenarios.He indicated that he would
also like staff to rework the pie chart (presented on slide no.5)showing
percentage wise,the causes of the proposed rate increases.
Chief Financial Officer Beachem presented a slide showing (slide no.20)where
the District's rate would rank among the local member agencies for an average
customer who used 15 units monthly.Such a customer would be billed
approximately $52.80 which would place the district about eighth lowest cost
among the local agencies.He stated a conserving customer who utilized 10
units would be billed monthly approximately $36.85 which would place the
District fourth lowest (two places lower than last year)in cost among the local
agencies.It was noted that staff had estimated some of the agencies'rate
increases (those indicated in blue on slide no.s 20 and 21)as they had not
responded to staff's request for their proposed increases.
Director Bonilla requested that staff include the agencies'proposed percentage
increases on the charts as well.
He also presented the sewer cost.He indicated last year the District was
somewhere in the middle and this year the District dropped to approximately the
one third point on the chart (slide no.22).He stated the reason is the District
had implemented winter based average rate structure.He indicated that the
District's prior sewer structure was fixed,now it is based on the customer's water
consumption during the winter months.He noted that last year the average
customer was using approximately 20 units per month and today they are using
15 units per month as a result of conservation.
Accounting Manager Rita Bell indicated that in May,staff presented to the board
an informational staff report introducing the subject of developing a rate structure,
for customers other than residential classes (such a structure is already in place
for residential customers),that simplified the District's current rate structure and
promoted conservation through a "drought"rate structure.She stated that staff
will be working with a rate consultant and will bring back information from the rate
study during the time of the Proposition 218 hearings.Director Bonilla inquired
when staff would bring back the rate information.Accounting Manager Bell
indicated that staff expects preliminary information in August and based on the
information,would bring back the Proposition 218 notices and likely have the rate
hearing in November.She stated that the notices must be sent to the District's
customers 45 days prior to the hearing date.Staff expects to present the drafts
for the board input before the notices are forwarded.
Accounting Manager Bell reviewed the various rate structures that staff will be
evaluating with the consultant (slide no.24)and determining the best way to
10
~.I
implement the tiers to encourage conservation.She indicated that the proposed
rate increases (9.7%and 4.6%)is what will be required to balance the budget
(revenues and expenses).
Chief of Engineering Posada reviewed the Capital Improvement Budget (CIP).
He stated staff utilizes various growth projections to develop the CIP.He stated
as the board is aware,the District has experienced a significant slowdown in
growth over the last few years.He indicated that the housing market in the City
of Chula Vista is expected to remain slow for at least the next couple of years
with a modest upturn in three years.Staff projects that meter sales in EDU's for
FY08 will be 620,520 in FY09,and 670 in FY10.
He indicated in developing the six-year CIP,staff ties together information from
several master planning tools;Water Resources Master Plan,Urban Water
Management Plan and the Sub-Area Master Plan (development document
provided by the developers).Staff also considered the following assumptions
when developing the bUdget to support the six-year CIP:
•Growth will remain slow with an increase of less than 1%
•Projects for Expansion,Betterment and Replacement were included in the
CIP
•The expenditure plan for the six-year CIP will be as level as possible
•The ENR Construction Cost Index will be utilized to project cost increases
Chief of Engineering Posada presented a slide showing the price increase of
concrete and steel graphically (slide no.30).
He noted that last year,staff projected the CIP budget expenditure for FY09 at
$38.4 million.This year,because of the slowdown in growth and other
conditions,staff reduced the projected CIP budget expenditures for FY09 to
$30.9 million.Last year,the CIP budget expenditure during the six year window
from FY08 to FY13 was projected to be $191.5 million,this year the six-year
window from FY09 to FY14 is expected to be $170.4 million.He noted that the
expenditures breakdown into the following categories:
Capital Backbone
Developer Reimbursement
Replacement &Renewal
Capital Purchases
Total:
$23 million
$0.5 million
$5.8 million
$1.6 million
$30.9 million
Director Brietfelder inquired which projects accounted for much of the rate
increase related to Replacement &Renewal.Chief of Engineering Posada
indicated that he did not have the information readily available,but while he
continues his presentation,staff will find the information.
He presented a slide listing the major capital backbone projects (slide no.33)
11
Staff located the information related to Director Breitfelder's inquiry.Accounting
Manager Bell indicated that a large portion of the monies support the AMR
program ($1.2 million)and the Air-Vac Replacement program ($1 million).She
noted that on page 114 of the budget,under the category Replacement and
Renewal,it lists all the projects. A few of the other Replacement and Renewal
projects are the SR 125 and 905 utility relocation projects,the District's annual
payment to the Spring Valley Sanitation District and the Calavo Sewer Lift
Station,etc.
Chief of Information Technology Geoff Stevens indicated that his division is
moving more toward targeted smaller projects as the IT Division has made its
significant investments over the last several years with the implementation of
GIS,IMS and the IG systems.He indicated that his department is now in the
process of assessing its entire asset base and noted the projects that they will be
working on in FY09 (slide no.34).
Accounting Manager Bell reviewed the budget process and noted that the big
challenge for FY09 is finding ways to reduce the Operating and CIP budgets to
minimize the rate increases.She indicated that staff utilizes the Rate Model to
determine where the District's targets need to be set,examine growth and cost
changes,and review all operating and CIP budget requests.The draft is then
reviewed by the senior management team in several meetings and necessary
adjustments are made to balance the budget.She indicated that the proposed
budget does include the effects of the economy and the anticipated drought
stages.
She further indicated that the FY08 growth projection was 2.1 %,but with the
slowdown in the economy the actual growth rate is anticipated to be .7%.A
modest growth rate of .06%is anticipated for FY09 for potable accounts and a
slightly higher growth rate of 2.7%for recycled accounts.These estimates are
based on actual developer projects.She stated that anticipated sales are
expected to pick back up in FY12.
Accounting Manager Bell indicated that the FY09 bUdget revenues are only 0.4%
higher than last years budgeted revenues overall.She stated that this budget
year reflects the slowdown in water sales and other areas of the budget.Staff
anticipates that water sales will be 5.5%less than what was projected in FY08.
The decrease is a result of lower than anticipated growth,expectation of another
drought year,and impacts due to the request to conserve in response to the
drought.Staff expects a 2.4%increase in revenue's after a rate increase of
9.7%.She indicated that depending on which of the rate increase scenarios is
utilized,revenues from water sales,energy fees and penalties will change
(variable revenues).She stated that staff is trying to keep the revenue
breakdown to 30%fixed and 70%variable to stay in compliance with BMP 11 to
encourage water conservation.
12
She indicated that the recycled revenue increase of 4.9%is a little higher as the
reclaimed growth rate is a little higher.The 4.9%revenue increase includes
revenues after the 9.7%rate increase.She stated that CWA also increased the
District's recycled credit rate from $147 to $200 per acre foot.
She noted that sewer revenues will decrease 19.9%($533,800)after the 4.6%
rate increase due to the decrease in winter-based average consumption of 25%
as there was more rainfall than anticipated this past winter.She stated that this
is something that staff will need to monitor and adjust each year as expenditures
and revenues must be balanced over the full budget.This trend is not expected
to continue each year,but it is good as conservation is something the District
wishes to encourage.
She reviewed the status of other revenue categories (see slide no.46)which
includes meter fees (decrease of 67.4%or $214,700),capacity fee
reimbursement (decrease of 8%or $112,600),betterment fees for maintenance
(decrease of $20,000),non-operating income (decrease of 2.8%or $47,100)and
tax revenues (increase of 3.3%or $133,500).
Accounting Manager Bell then reviewed the expenditures expected in FY09.She
indicated that there was a small increase of 0.4%between FY08 to FY09.She
stated that she felt that the District has done a good job in mitigating cost
increases where it can.She noted that water purchases for FY09 dropped 5.5%
due to the slow down in the economy and anticipated water conservation.
She noted the sources of potable water purchases for the upcoming year will all
come from CWA.Raw water treatment from the City of San Diego through the
Lower Otay Pump Station will no longer be purchased as the cost to treat the
water through the city has increased.If the District also includes the cost of
diesel fuel to pump the water,it is no longer a cost effective source of water.She
stated that recycled water will be purchased from the City of San Diego's South
Bay Water Recycling Plant to augment the water produced by the District's
Chapman Water Treatment Plant.
She indicated that the variable cost for potable water increased 3.7%or
$896,200.This cost includes the volume purchase decrease of 5.5%due to
slowed growth,rainfall,and conservation along with a water rate increase of
10.3%from CWA.She reviewed the variable cost increase of 0.7%or $9,900 for
recycled water which also includes a volume purchase decrease of 8.8%due to
slowed growth,rainfall and conservation along with a rate increase of 10.3%or
$133,400 from the City of San Diego.She noted that staff utilized CWA inflators
for the cost increase for recycled as it was felt it was a reasonable increase to
use as an estimate.
She stated that it is estimated that the fixed cost of water will increase 12.9%or
$601,100 in FY09 (breakdown of increase is noted on slide no.52).She noted
that staff has included a new fee for fixed cost,Recycled Meter Fee,which staff
13
was not aware of when the budget was built last year.Director Bonilla inquired if
the fee was within the contract.Chief Financial Officer indicated that staff was
aware of the fee,however,it was not included in the budget process.
Accounting Manager Bell indicated that the water purchase volume decrease of
5.5%also affects power cost.Power cost is expected to decrease .9%despite
the 2%rate increases on January 8,2008 from SDG&E and the expected 2.8%
increase effective July 1,2008.
Director Bonilla inquired if staff also incorporated savings due to conservation
when they adjusted power use.Accounting Manager Bell indicated that staff did
include conservation in the adjustment.
Chief of Administrative Services indicated that the Human Resources
Department has worked with the senior staff of each department and General
Manager to identify staffing needs during the year and during the budget
process.Each Department assesses its needs in filling vacancies and
forecasting future needs related to workload and anticipated vacancies
(retirement,terminations and extended absences).When a position becomes
vacant,it is determined whether it should be filled or if another vacancy within the
department or outside of the department should be filled.He stated that the
proposed budget reflects the exact headcount assigned to each department.
Overall,the headcount was reduced by four positions for FY 2009,from 173 to
169.
Director Bonilla indicated that it is his understanding that the District is not
planning to reduce positions except through attrition.He inquired how the
Employee Association felt about not replacing some of the union positions.Chief
of Administration Sarno indicated that the positions identified are those that are
not required based on workload and assignments.There is no direct
communication with the Employee Association with regard to such positions.
The Association contract does not require a "meet and confer"on this particular
issue.It was discussed that positions may have been reduced in engineering
due to workload and possibly one in operations,however,the Association
understands how the District is handling staffing and it has not come up as an
issue.If there were layoffs or a reduction in workforce,it would be a much
different scenario.Director Bonilla indicated that he would like to see staff plan
when implementing automation to allow staff to move to different positions.It
was indicated that staff does currently plan and provide such movement for
existing staff.For clarification it was noted that there is no layoff or reduction in
workforce planned in the proposed FY09 budget nor has it been discussed.
Accounting Manager Bell indicated that despite the reduction in headcount,there
was some cost increases that is consistent with the District's five-year labor
agreement and funding plan.Salary and fringe benefits cost increased 10.3%or
$1,601.000 (see slide no.57).She indicated that less of employee labor is
charged to CIP and more to the operating budget.This is not really a cost
14
increase,but instead a shifting of labor cost from CIP to the operating budget.
Also,there is a benefits cost increase of $493,000.This cost increase is mainly
due to an increase in medical costs.
She indicated that Administrative Expenses dropped 15%or $1 ,047,200 (see
slide no.58).The decrease is due to four main categories:
•Departmental Budget Cuts (travel,etc)of $145,600
•Completion of Contracts (contracts no longer required such as employee
negotiations contract)of $84,000
•Conservation Grants Removed (incentive payments complete)of
$120,000
•Legal Expense Reduction of $741,500
Materials and maintenance costs have also been reduced 13%or $580,000.
The decreases consisted of:
•Fuel &Oil cost decreased $214,500
-She indicated that this is mainly due to the District no longer
requiring the purchase of diesel of fuel to run the pump station for
the Lower Otay Reservoir as the District will no longer be
purchasing treated water from the City as it is not cost effective.
-Staff did anticipate a fuel cost increase in the budget and expects
an average cost of $4.80/gallon in FY09.
•Increase of Metro Sewer and SVSD O&M cost of $65,100
•Decrease in Janitorial and Landscaping cost of $82,600
•Decrease in the number of meters to be purchase of $165,900 for new
meter sets
•Decrease in Chemical and Lab Supplies cost of $182,200
Chief of Operations Pedro Porras indicated the additions to the materials and
maintenance cost savings,the Operations Department anticipates a $145,000
savings to its FY09 budget due to the following:
•SCADA Support Contract was discontinued for a savings of $30,000 as
the new employee has become proficient with the District's SCADA
system.
•DHS requirements to renew the discharge permit for the Treatment Plant
has been completed which will provide a saving cost of $20,000 in FY09
•The maintenance on the pressure reducing valve on the 624-3 Reservoir
has been deferred for a couple years for a cost savings of $35,000.Staff
is comfortable that the maintenance can be deferred without impacting the
District's operations.
• A savings of $25,000 will be incurred by simply changing the purchase of
sodium hypochlorite from the solid form to the liquid form.
15
•The required 5 year maintenance on the treatment plant Scrubber
(neutralizes chlorine gasses should a spill occur)is complete for a cost
savings of $35,000
Accounting Manager Bell indicated that the last portion of the Operating Budget
is the transfers which Chief Financial Officer Beachem discussed earlier.The
Operating Budget funds the Reserves to keep them at target.Last year,the
District funded the Replacement,Expansion and Betterment Reserves.This
Fiscal Year,the District proposes that the Replacement and Expansion Reserves
receive funding (more in the Expansion Reserve)[slide no.61].She presented a
slide showing the total expected revenues and expenditures for FY09 of
$66,443,000.
Chief Financial Officer Beachem indicated that staff will be coming back to the
board at the June 23,2008 meeting and present some of the information that has
been requested during today's meeting and a request will be made at that time
that the board approve the FY09 budget.
Director Breitfelder requested that staff include in their presentation how the
District's budget would be affected if the State once again borrowed the District's
tax revenues.
The board recessed at 5:39 p.m.and reconvened at 5:53 p.m.
Director Bonilla left at 5:40 p.m.
CONSENT ITEM PULLED FOR DISCUSSION
6e)ADOPT ORDINANCE NO.516 AMENDING SECTION 39,DROUGHT
RESPONSE CONSERVATION PROGRAM,FORMERLY KNOWN AS
"CONSERVATION AND WATER SHORTAGE RESPONSE PROGRAM,"
OF THE DISTRICTS CODE OF ORDINANCES
Conservation Manager Granger presented the four levels of drought response
developed by the District based on CWA's suggested levels.He stated that the
levels are in sync with CWA with a couple minor changes.This item was
presented to the Finance,Administration and Communications Committee.He
indicated that if the board approved the revisions to Section 39 of the District's
Code of Ordinances,the General Manager would declare a Level I Drought
Watch.Any subsequent declarations would be made by the board.Levell is
essentially a voluntary 10%water use cutback.Level II begins the mandatory
cutbacks and the drought rate pricing which will be brought to the board in the fall
for consideration along with monitoring and enforcement procedures.He stated
that staff fully expects that by this time next year,that District will be at a Level II
drought alert and facing a reduction of up to 20%.
16
He reviewed the different levels in detail and noted that the District made a
couple changes from CWA's suggested program at Level I and included a
suggestion that customers not water more than three days a week (this is not
mandatory,but a suggestion to customers).The District's Levell also requires
that leaks be repaired within 48 hours (CWA suggested 5 days)and this
requirement continues through Level III.Level II requires a mandatory cutback of
up to 20%.Also,because the District's service area is more inland,the limit on
lawn and landscape irrigation in Level II has been set at 15 minutes per water
station per day for the more traditional sprinklers that 90%of the District's
customers own.At Level III,CWA is banning water features.Otay's Drought
Response Conservation Program does not ban water features for residential
customers.Staff also added language with regard to larger vehicles such as
RV's,horse trailers,etc.which cannot be taken to local car washes.The District
will allow such vehicles to be washed at home using a bucket and a mobile
pressure device.Annexations will also be halted and no new potable water
services will be provided by the District (no new meters will be sold).He stated
that at Level IV,Section 350 of the State Water Code is enforced.A formal
public hearing is required to declare a Level IV Drought Response.All water-use
restrictions for Level IV follows CWA's program suggestions.
Director Robak indicated that the Finance,Administration and Communications
Committee reviewed this item and felt that this was very important information for
the board to hear and suggested that it be presented as an action item.He
stated that he felt that the District has done a thorough job to address the water
supply situation and would like to think this is work in progress which can be
amended as needed.He stated that he felt it was appropriate to follow CWA as
the District is dependent on imported water.
Director Breitfelder indicated that he felt it was very important that staff and the
public understand where the board stands on the water supply issue.He stated
that the District must stick to the Drought Response Levels,even when Levels III
and IV are enforced and it is unpopular in the community.He indicated that the
public will be better off if the District took the necessary actions to protect the
water supplies long-term,even if the actions are unpopular.
General Manager Watton indicated that CWA is doing everything it can to
mitigate the need to enforce the Drought Response Levels.He stated that this
is,however,a way to get prepared.Staff will also be presenting to the board
fines and operations that will be put in place to support the enforcement of the
levels at a future meeting.
A motion was made by Director Breitfelder,seconded by Director Robak and
carried with the follOWing vote:
Ayes:
Noes:
Abstain:
Directors Breitfelder,Lopez and Robak
None
None
17
Absent:Director Bonilla and Croucher
to approve staffs'recommendations.
Director Robak inquired how many Districts have declared a Level I alert.
General Manager Watton indicated that at the moment there are a couple of
agencies.About 20 of the 24 agencies will have this item on their agenda about
this time next month and by the end of August it is expected that 100%would
declare a Level I alert.
ACTION ITEMS
9.BOARD
a)CONSIDERATION TO NOMINATE REPRESENTATIVES TO SAN
DIEGO LOCAL AGENCY FORMATION COMMISSION (LAFCO)
General Manager Watton indicated that this item was presented to the Finance,
Administration and Communications Committee and the committee did not have
any recommendations for a nomination.Hi indicated if the board did wish to
forward a nomination,it would require board action.The board did not wish to
make a nomination.
b)DISCUSSION OF 2008 BOARD MEETING CALENDAR
It was noted that a follow-up board workshop on the budget was scheduled on
June 23,2008.No changes were made to the board calendar.
INFORMATIONAL ITEMS
10.THESE ITEMS ARE PROVIDED TO THE BOARD FOR INFORMATIONAL
PURPOSES ONLY.NO ACTION IS REQUIRED ON THE FOLLOWING
AGENDA ITEMS.
a)REPORT ON BOARD OF DIRECTORS FISCAL YEAR 2008 3RD
QUARTER EXPENSES (PRENDERGAST)
b)3rd QUARTER CIP UPDATE (RIPPERGER)
c)INFORMATIONAL REPORT ON THE REQUEST FROM SYCUAN BAND
OF THE KUMEYAAY NATION ANNEXATION TO OTAY WATER
DISTRICT FOR WATER SERVICE (SPECIFIED PARCELS ONLY)AND
SEWER SERVICE (WATTON/CHARLES)
Director Robak indicated with regard to item "c"above,he had discussed with Public
Services Manager,David Charles,parcel C which appears on the map that is attached
to staffs'report.He understood that this parcel was within the District's sphere of
18
influence,but it is not within an Improvement District (ID)and must be annexed into an
10.The annexation would be an Otay process for this parcel.It was discussed that
parcel A,where the reservation resides,is not within the District's sphere of influence
and must be annexed into the District's sphere of influence.The sewer line closest to
the reservation is located on Dehesa Road and Vista Matama Place.Sycuan is
requesting that the sewer be extended to all parcels (A,B and C).It was explained that
parcel C requires only action from Otay to annex it into an ID.Parcel A (sewer and
water service)will require action by Otay,CWA,MWD and LAFCO for water;and action
by Otay and LAFCO for sewer. Parcel B (sewer only)resides in Padre Dam's sphere of
influence and will require action by Otay,Padre and LAFCO.Staff expects to present a
board resolution with the intent to annex in the near future.The process through
LAFCO may take three years to complete.
Director Robak requested that the staff report should accurately indicate that the
division affected is Division 5.He also requested that he be apprised of the status of
the annexation as information occurs.
Director Breitfelder inquired what are the current facilities for the parcels.General
Manager Watton indicated that parcel A has housing,support services and buildings for
the tribal use which may be expanded.Parcels C &B are new purchases that are off
the reservation,but may be included in the reservation sometime in the future.The
tribe is looking to secure its utility needs for the future.
Director Breitfelder inquired if the sewage from the reservation would increase the
economies of scale of the District's sewer service.General Manager Watton indicated
that the District has charted the ultimate growth within the District's service area and
has looked at the parcels that could possibly annex in that would have an immediate
use of the sewer system.These parcels would be charged appropriately with the
knowledge that the District may need to get additional capacity in 30 to 40 years.The
District must decide if it will use some of the capacity now or hold it in reserve forever
and never utilize it.He indicated that it may make sense to use some of that capacity
now and this is what the District is exploring with parcel A.He indicated that there is
quite a bit of slack in the system now and,at the moment,Sycuan annexing into Otay's
sewer system is looking positive,but it requires additional studies.
Director Breitfelder inquired if water from Padre Dam is likely and what is the prospect
of Otay providing the water services.General Manager Watton indicated that the
Sycuan Tribe had originally discussed water services with Padre Dam.Padre Dam and
Otay had discussions with the Sycuan Tribe and during the discussions,Otay staff had
indicated that the process and fees that are outlined in the District's website is the
process that will be followed for their annexation into the District.There would be no
special process/deal developed for the Tribe.Following discussions,the Sycuan Tribe
made a business decision and has approached Otay for annexation.
REPORTS
11.SAN DIEGO COUNTY WATER AUTHORITY UPDATE
19
General Manager Watton indicated that he had distributed a copy of CWA's
official statement for their last bond issue.He noted that the most relevant pages
to review are 14 to 31 are they outline all operational issues and disclosures.He
indicated that it is very good reading as it provides a good picture of CWA affairs.
12.GENERAL MANAGER'S REPORT
He noted that staff is still working with IEC to resolve concerns and will be
discussing the issue further with the board in the future.
He indicated that there has been a lot of interest in the artificial turfgrass rebate
program.It seems to be a popular program and staff is discussing additional
conseNation programs.He noted that ConseNation Manager William Granger
has a new staff member,Richard Namba,who will also be focused on water
conseNation programs.
He shared that the board has approved the Strategic Plan (FY09-11)and staff is
continuing to work on project plans.
He indicated that staff has been focused on bUdget preparations,which was
presented to the board during today's meeting.He stated that the finance
department carries the heaviest burden to put together the figures and facts to
generate the budget documents and it is hoped that,again,the District will have
an award winning budget document.
He noted that the District will be retaining a rate consultant to help staff develop
rates and drought rate structures.
General Manager Watton indicated that staff is still exploring solar opportunities
for the District and it is something that they are actively considering.
CESPT visited the District to view the District's GPS system and a group from
Tijuana and COM visited to discuss seawater desalination.A nice relationship
has been developed with the agencies to the south which provides opportunities
for sharing technologies and what our agencies have learned in using these new
technologies.
He indicated that the District received a grant check from United States Bureau
of Reclamation in the amount of $1 million for the District's recycled water
program.With this payment,the District has received approximately $4 million of
the $12 million Title XVI grant.
The District had requested that Mexico make payment on the amount due on
their contract to deliver water to their country through the District's system.The
District has received $740,713 which leaves about $80,000 still outstanding.It is
expected that Mexico will make final payment on the contract by the termination
20
date in October.Mexico is interested in continuing the wheeling contract and the
District anticipates that the new contract will be submitted for board approval in
October from the IBWC and CllA.
13.DIRECTORS'REPORTS/REQUESTS
Director Breitfelder indicated that he attended CSDA's Special Districts
legislative Day in Sacramento and the central topic of discussion was the State
possibly borrowing local agencies tax revenues once again.He stated,from the
discussion,that it is very possible that it could occur again.He suggested that if
it should transpire,that as part of the District's required disclosure to the public
under Proposition 218,that an explanation be provided in plain language and cite
which of the local representatives voted for and against the issue.
Director lopez indicated that he appreciated the presentation by the Oak Grove
Middle School and the Steele Canyon High School students and it was a
pleasure to see young students excited about water.
14.ADJOURNMENT
With no further business to come before the Board,Vice President lopez
adjourned the meeting at 6:34 p.m.
President
ATTEST:
District Secretary
21
AGENDA ITEM 5:
MINUTES OF THE
BOARD OF DIRECTORS MEETING OF THE
OTAY WATER DISTRICT AND
August 6,2008
1.The meeting was called to order by President Croucher at 3:32 p.m.
2.ROLL CALL
Directors Present:Bonilla,Breitfelder,Croucher,Lopez and Robak
Staff Present:General Manager Mark Watton,Asst.GM Administration
and Finance German Alvarez,Asst.GM Engineering and
Water Operations Manny Magana,General Counsels Yuri
Calderon and Marie Mendoza,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:
.'-,1
iI,'I
: i
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.
6.APPROVAL OF MINUTES OF THE REGULAR BOARD MEETING OF MAY 7,
2008 AND SPECIAL MEETING OF JUNE 23,2008:
A motion was made by Director Breitfelder,seconded by Director Lopez and
carried with the following vote:
1
Ayes:
Noes:
Abstain:
Absent:
Directors Bonilla,Breitfelder,Croucher,Lopez and Robak
None
None
None
)1'II
to approve the minutes of the regular board meeting of May 7,2008 and special
meeting of June 23,2008.
CONSENT CALENDAR
7.ITEMS TO BE ACTED UPON WITHOUT DISCUSSION,UNLESS A REQUEST
IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A
PARTICULAR ITEM:
a)AWARD A FIVE YEAR CONTRACT (TWO YEARS WITH THREE
OPTION YEARS)TO WILLIS RISK AND INSURANCE SERVICES
FOR CONSULTING SERVICES FOR BENEFITS AND AS THE
DISTRICTS BROKER OF RECORD IN THE AMOUNT OF $35,000
PER YEAR FOR THE FIRST TWO YEARS AND UP TO THREE
ADDITIONAL TERMS WITH COSTS INCREASES LIMITED TO A
MAXIMUM OF 3%PER YEAR
b)AWARD A CONSTRUCTION CONTRACT TO FOX CONSTRUCITON
FOR THE REGULATORY SITE STORAGE BINS AND EQUIPMENT
COVER RELOCATION PROJECT IN AN AMOUNT NOT TO EXCEED
$225,000
Director Robak requested that the following agenda items be pulled for
discussion:
c)ADOPT THE MITIGATED NEGATIVE DECLARATION FOR THE
1296-3 RESERVOIR CONSTRUCTION PROJECT
Director Breitfelder requested that the following agenda items be pulled for
discussion:
d)ADOPT THE 2008 LEGISLATIVE PROGRAM
e)ADOPT A "SUPPORT"POSITION ON SENATE BILL 1XX -PERATA
RELATED TO FUNDING FOR WATER QUALITY,FLOOD
CONTROL,WATER STORAGE AND WILDLIFE PRESERVATION
PROJECTS
A motion was made by Director Robak,seconded by Director Lopez and carried
with the following vote:
2
Ayes:
Noes:
Abstain:
Absent:
Directors Bonilla,Breitfelder,Croucher,Lopez and Robak
None
None
None
to approve items "a"and "b"on the consent calendar.
c)ADOPT THE MITIGATED NEGATIVE DECLARATION FOR 1296-3
RESERVOIR CONSTRUCTION PROJECT
Director Robak inquired with regard to the Engineering and Water Operations
Committee discussion on this item,the notes indicate that the Jamul-Dulzura
Planning Group had no comments or concerns.Environmental Compliance
Specialist Lisa Coburn-Boyd indicated that there were no comments or concerns
regarding the environmental portion (Mitigated Negative Declaration),but they
did express concerns with the building of the reservoir.Staff is requesting that
the board adopt the Mitigated Negative Declaration for the project.
A motion was made by Director Robak,seconded by Director Breitfelder and
carried with the following vote:
Ayes:
Noes:
Abstain:
Absent:
Directors Bonilla,Breitfelder,Croucher,Lopez and Robak
None
None
None
to adopt the Mitigated Negative Declaration for the 1296-3 Reservoir
Construction Project.
d)ADOPT THE 2008 LEGISLATIVE PROGRAM
Pres Croucher:
Dir Breitfelder:
Pres Croucher:
Moving on to item 6d we have the adoption of the 2008
Legislative Program.Director Breitfelder you had some
questions?
Yes,obviously this policy is to give direction to staff in terms
of addressing legislation as a standard operating procedure
and it was heard in Finance.We thought the rubber had hit
the road in terms of the board being unclear to staff in terms
of its position on groundwater recharge.Referring to item
"d"on page 2 and I didn't see in the notes from the other
committee meeting where that was addressed.
I think from our committee,Jose correct me if I am wrong,
we decided that if it was an issue that was controversial...
3
GM Watton:
Pres Croucher:
Dir Lopez:
Pres Croucher:
Dir Bonilla:
Dir Breitfelder:
Dir Croucher:
Dir Breitfelder:
Dir Croucher:
Dir Breitfelder:
Dir Croucher:
Dir Breitfelder:
Dir Croucher:
I think Jaime was on that.
Jaime?Jaime was on it.
Yes.
I believe that we said that if it is a controversial issue that we
would bring it back to the board for further direction and staff
should not move without getting board direction.
Absolutely.
I don't see...given the spectrum of opinion on this issue.I
don't see how there is virtually any facet to it that is not
controversial.
So then,therefore,it would come back to the board as a
whole.
Well.therefore.it is not really appropriate for standard
operating procedure where we are directing staff as a matter
of standard operating procedure to oppose efforts to restrict
the use of recycled water for groundwater recharge.I think it
is finally time where we actually have to make the decision
what we think about this.
On page 2,which one?
Page 2,"d"like David.
So we would...were not making an effort to restrict the use
of water,but we would oppose restricting the use of
water...lf we need to make board direction,if we need to get
a consensus of the board as far as our direction on this
particular item,I don't see a problem with that.I can tell you
right now that my belief is we should oppose efforts to
restrict the use of recycled water for groundwater recharge.
Oppose efforts to restrict it.That is my personal.If we need
to get a consensus of the board so we can go from there...
Actually,this vote will serve that purpose as long as we have
a meeting of the minds.Then voting "yes"for this.we are
supporting groundwater recharge.
Correct.
4
Dir Lopez:
Dir Croucher:
Dir Robak:
Dir Croucher:
Dir Lopez:
Dir Croucher:
Dir Bonilla:
Dir Croucher:
Dir Breitfelder:
Dir Croucher:
Okay.
Do we have any Directors,as far as individually.that want to
speak up on it so the staff knows the overall consensus of
where we stand?Director Robak?
We did hear this at the Finance Committee and there is
definitely a difference of opinion between Larry and I.no
question about it.I think I have made myself pretty clear on
what my position is.which is,I think the science is solidly
behind it.What Orange County is doing right now is a
testament to that.I have seen it with my own eyes so I don't
know what else I have say about it.I mean if...1think if we
have a project in San Diego that is for real,it is going to
come to us and Gary I think you are right on the money.If
something comes to fruition to San Diego.we are going to
have to weigh in,but I am not aware we have a viable
project on the table right now.So I'm concurring with the
committee's recommendation.if it does come,it will come
back to us directly.So I don't know what else to say really.
Director Lopez?
When you interject Orange County and some pockets that
are in place,unless it comes to us then that is when we are
going to take action.As far as I'm concerned we are not
restricting anything from us reviewing at this point.I
understand where you are coming from,but I'm totally
behind our efforts here as described on the committee
comments.
Director Bonilla?
Absolutely.I stand behind the committee recommendation.
agree with Director Robak and yourself.
Would it be appropriate to vote?I think the only question is
our item.Oppose efforts to item "d".
It is perfectly appropriate.I accept that we don't have to
agree.we just have to be clear.
I concur.So all we would need to do would be to vote on
item.Oppose efforts to "d,"because that seems to be the
only one that we have disagreement on.
5
Dir Bonilla:
Dir Robak:
Dir Croucher:
Dir Robak:
Dir Croucher:
Dir Bonilla:
Dir Croucher:
Someone make the motion and I will second it.
Is there a motion on the table right now?
As of right now,there is no motion on the table.
I would move that we support the committee's
recommendation.That would be my motion.
Okay.there is a motion.
I will second it.
Second.Please vote.
Director Broitfelder indicated that the Legislative Program guidelinos provide
direction to staff with regard to addressing logislation.Ho indicated that the
Financo,Administrativo and Communications Committeo had discussod that tho
board Vlas unclear with regard to its position on groundwater recharge (item "d"
on page 2 of the Legislative Program guidelinos).He indicated that it did not
seem from the notos that the Legal and Legislative Committee addrossed this
fact.Presidont Crouchor indicatod that tho committee had discussed the issue
and determined that if the item was a controversial issuo it would bo brought
back to tho board for further diroction.Director Breitfelder felt that the board
should take action for a formal position on 'Nhether to oppose or support efforts to
"Restrict the use of recycled 'Nater for groundwater recharge."Director Robak
indicated that currently there 'Nas no viable project in San Diego for groundwator
recharge and he would support the committee recommondation that should a
project bo presented,then the itom 'Nould bo brought back by staff for direction
from tho board.Director Lopez and Bonilla indicated their concurrence with
Director Robak.
A motion was made by Director Robak,seconded by Director Bonilla and carried
with the following vote:
Ayes:
Noes:
Abstain:
Absent:
Directors Bonilla,Croucher,Lopez and Robak
Director Breitfelder
None
None
to support the committee recommendation.
e)ADOPT A "SUPPORT"POSITION ON SENATE BILL 1XX -PERATA
RELATED TO FUNDING FOR WATER QUALITY,FLOOD CONTROL,
WATER STORAGE AND WILDLIFE PRESERVATION PROJECTS
6
Director Breitfelder indicated that he wished to get a little assurance on this item.
He understands that there is approximately $13 billion accrued State-wide for
various water uses and Perata's bill is about 5%of that total.He stated he
wished to get reassurance that this is a situation unlike other water bonds -
where there is not much water projects in the bond -and that the bond is actually
good use of the money proportionate to the amount expended.
General Manager Watton indicated that Senator Perata bill's goal is to get some
money from those prior bonds moved into building projects.There is about $800
million within Senate Bill 1XX -Perata for water projects.He stated that the bill
would provide for immediate Delta improvements and would bring approximately
130,000 to 190,000 AF of water to Southern California.The MWD and California
Urban Water Agencies support the bill and MWD indicates that they have crews
that can be dispatched in a couple of weeks if the bill is approved.
It was noted that it is unclear if the bill will pass as it may get held back in the
budget discussions.He stated that there are republicans that oppose the bill
because of the dam issue.It was discussed that the District's committee
supports staff's recommendation to take formal action to support the bill in hopes
to get immediate improvements to the Delta moving forward.
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 support staff recommendation.
ACTION ITEMS
8.ENGINEERING AND WATER OPERATIONS
a)ADOPT RESOLUTION NO.4128 OF THE BOARD OF DIRECTORS OF
THE OTAY WATER DISTRICT REQUESTING FORMAL TERMS AND
CONDITIONS FROM THE SAN DIEGO COUNTY WATER AUTHORITY
AND METROPOLITAN WATER DISTRICT FOR THE CONCURRENT
ANNEXATION OF TERRITORY DESCRIBED AS "SYCUAN
RESERVATION"TO THE OTAY WATER DISTRICT
Engineering Public Services Manager David Charles indicated that staff received
a written request and petition from Chairman Daniel Tucker of the Sycuan Band
7
of the Kumeyaay Nation (Sycuan)to commence annexation proceedings for
water and sewer services.Staff is presenting a resolution to request formal
terms and conditions from CWA and MWD for the annexation of Sycuan's
reservation land.Sycuan is requesting annexation to reduce their dependency
on wells and to attain a stable water resource for their reservation.The
reservation land is approximately 634 acres and water services will be provided
by 10 20 and sewer services will be served by 10 18.He noted that Sycuan will
consider annexation for sewer services at a later date.
As the reservation land is outside the District's sphere of influence,the
annexation will also require processing through LAFCO.Sycuan has hired
engineering consultant Dexter Wilson Engineering,Inc.to handle all
documentation required for the annexation.
Staff noted that Sycuan has also requested the annexation of parcels identified
as group B on the map attached to staffs'report for sewer service only.These
parcels are currently within Padre Dam MWD's service area and will require
deannexation from Padre Dam MWD and annexation to Otay WD.Since these
parcels will not require annexation to CWA or MWD and Sycuan is not ready to
proceed with the sewer annexation,the District has agreed to process the
annexation of these parcels at a later date.
Engineering Public Services Manager Charles indicated that the projected need
of 392 AF per year for Sycuan's Original Reservation was incorporated into the
CWA 2005 Urban Water Management Plan.Sycuan has indicated their
commitment to a goal by working toward projects that will offset the projected
400 AF per year subject to the approval by the District and the Sycuan Tribal
Council.The 400 AF required by this annexation will be offset and will not
require an increase of imported water delivered to Otay.
He stated that the notes from committee discussion are attached to staffs'report.
He noted that a revised Resolution has been provided the board as the original
presented resolution had a transposed APN number (the correct APN number is
516-040-01 ).
Chairman Tucker thanked the board for taking the time to work with them and
they looked forward to the partnership with Otay.He indicated that this issue is
very important to their tribe and community.
General Manger Watton noted that the resolution will request terms and
conditions from CWA and MWD and is the launching point for the annexation
process.He stated that there will be many months of processing through LAFCO
(possibly a year or two)prior to coming back to the board for a formal request for
annexation.Today's board action would support moving the annexation forward
through the process.He stated that staff has had a discussion with Sycuan and
they feel they will be successful with offsets which will bring success for
8
annexation with CWA and MWD.He noted that Otay has been planning for the
tribe's annexation to the District for some time.He stated that there is capacity in
the District's sewer system as some developments that were planned will not
come to fruition and have become open space.He noted that Sycuan has
purchased the Singing Hills Resort and other large properties within the District's
service area.He indicated that Sycuan is already a large customer of the
District's and they are a good customer.
Director Bonilla indicated that the District had discussed a problem with well
water used for irrigation at one of the golf courses within the District's service
area.He inquired if that golf course was the Singing Hills Resort.It was
indicated that that golf course was the Steele Canyon Golf Course.It was noted
that the Singing Hills Golf Resort is utilizing well water,but there are no issues
with their use of well water.He also inquired what the total area of land is that
the District will be servicing.Engineering Public Services Manager Charles
indicated that parcels A and B (see map attached to staffs'report)will be
annexed for sewer service and parcel A (the original reservation land)will be
annexed for water as well.The total water demand will be approximately 392
AF.General Manager Watton clarified that the resolution presented for adoption
today is just for water service to parcel A.At a future date,staff will be
presenting parcels A,B &C for sewer service.Director Bonilla inquired what
was LAFCO's position on this annexation.It is expected that the District will go
through LAFCO's process and the District will need to press them to move this
process forward.It is felt the annexation process will take about two to three
years.
This item was reviewed by the District's committee and Director Robak indicated
that any time an annexation is being considered,it is a concern as water issues
will be controversial.He indicated,however,it is good to hear that there is
support in the community as the community wishes to protect their wells.The
situation,at this time,appears to be win/win,especially when their water use can
be offset with additional supplies.
Director Breitfelder thanked the Sycuan representatives for attending today's
meeting.He indicated that he did not believe that the District has ever had a
situation where water use would be 100%offset.He stated if Sycuan is able to
meet this goal,they certainly deserve the District's support.
A motion was made by Director Robak,seconded by Director Bonilla and carried
with the following vote:
Ayes:
Noes:
Abstain:
Absent:
Directors Bonilla,Breitfelder,Croucher,Lopez and Robak
None
None
None
9
to adopt Resolution No.4128 requesting terms and conditions from CWA and
MWD for the annexation of the Sycuan Reservation (APN No.516-040-01)for
water service.
b)ADOPT THE MITIGATED NEGATIVE DECLARATION FOR THE
JAMACHA ROAD 36-INCH POTABLE WATER PIPELINE AND 12-INCH
POTABLE WATER PIPELINE REPLACEMENT PROJECT
Environmental Compliance Specialist Lisa Coburn-Boyd indicated that there are
two projects included in the MND:
•36-inch pipeline project which begins at the Otay 14 FCF in EI Cajon
and ends at the Regulatory Site
•Pipeline replacement project along Jamacha Road replacing concrete
cylinder pipe with PVC pipe.
She noted that the pipeline replacement project already has a Notice of
Exemption (NOE)in place,but is included in the MND as it is a component of the
overall 36-inch pipeline project.
She indicated that the environmental impacts requiring mitigation includes air
quality,biological resources,hazards and hazardous materials,noise and
transportation/traffic mitigation.She presented a map showing the location of the
projects (please see attached copy of the presentation to staffs'report)and
indicated that the draft MND was sent to the State Clearinghouse in October
2007 and was distributed to 13 agencies.The District received one comment
letter from the Native American Heritage Commission.
She stated that during the design phase,issues arose concerning the 36-inch
pipeline alignment through the City of EI Cajon and several alternative
alignments were proposed through the area.Due to the alternative alignments,
staff amended the original MND analyzing the alternative alignments and no new
significant environmental impacts were identified and,thus,no additional
mitigation was required.The amended MND was forwarded to the State
Clearinghouse on October 2007 and distributed to 13 agencies and a notice of
the availability of the amended MND was published in the Union-Tribune.The
District received one comment from the Native American Heritage Commission.
Environmental Compliance Specialist Coburn-Boyd indicated that a segment of a
possible alternative alignment,identified as Alt.2a (see copy of presentation),
was not identified in the amended MND.The new segment/alignment was
reviewed by the District's consultant and it was decided that it substantially
conforms to the other alternative alignments and no additional recirculation of the
MND was required.The District did send notices to the homeowners who would
be affected by this project to make them aware of the project and that the MND
was available for their review and comment.No comments were received.She
stated that staff is requesting that the board adopt the MND and within five days
10
of the adoption,the "Notice of Determination"will be filed.She explained that 30
days after filing,the statute of limitations for legal challenges from those agencies
or individuals that commented on the MND concludes.
Director Bonilla inquired what were the Native American Heritage Commission's
comments.Environmental Compliance Specialist Coburn-Boyd indicated that
they really did not have comments.They had forwarded a form letter,which they
send to every MND filed for public review,indicating that the District needs to be
aware that when it digs for this project,there is a possibility that it could come
upon tribal remains as the area was inhabited by tribes in the past.They asked
that we contact the commission should we come upon tribal remains.It was
noted that the project could be shutdown if remains are found until the remains
can be excavated.Environmental Compliance Specialist Coburn-Boyd,
however,indicated that this corridor has been dug up in the past,so it is unlikely
that remains will be uncovered.
Director Robak inquired if all alignment alternatives were covered in the MND.
Environmental Compliance Specialist Coburn-Boyd indicated that they were and
noted that the alternate alignment noted in red (in staffs'presentation)is the
preferred alignment.It was clarified that the adoption of the MND is an approval
of all alternatives.
A motion was made by Director Breitfelder,seconded by Director Lopez and
carried with the following vote:
I
Ayes:
Noes:
Abstain:
Absent:
Directors Bonilla,Breitfelder,Croucher,Lopez and Robak
None
None
None
to approve staffs'recommendation.
c)ADOPT RESOLUTION NO.4129 OF THE BOARD OF DIRECTORS OF
THE OTAY WATER DISTRICT WAIVING BOARD POLICY NO.21 AND
AWARDING A PROFESSIONAL ENGINEERING DESIGN SERVICES
CONTRACT TO LEE &RO,INC.FOR THE COMPLETION OF THE
DESIGN OF THE 36-INCH PIPELINE,SDCWA OTAY FCF NO.14 TO
THE REGULATORY SITE PROJECT TO LEE &RO,INC.IN AN
AMOUNT NOT TO EXCEED $769,000
Engineering Manager Ron Ripperger stated that the City of EI Cajon indicated
that they would not permit the current pipeline design through the corridor of
Jamacha Road and Washington Avenue.He indicated that staff then gathered a
focus group in March 2008 comprised of experts in pipeline design,trenchless
technology and construction to review the current alignment and recommend
alternative alignments to avoid the Jamacha Road and Washington corridor.The
11
alternative alignments were discussed with IEC and the discussion to design an
alternate alignment avoiding the busy corridor had reached an impasse.The
District then terminated IEC's professional services contract and subsequent to
terminating IEC's contract,the District negotiated with Lee &Ro to complete all
remaining work which includes finalizing the project and preparing the contract
documents to advertise for bids for the construction of the pipeline project.
He noted that Lee &Ro had tied for second in the original consultant selection
process for this project.He stated that Lee &Ro recently successfully completed
the design of the District's 30-inch Recycled Water Pipeline in the cities of San
Diego and Chula Vista.They are also currently a member of the program
management for Flow Control Facility No.14 with CWA.
He indicated with regard to fiscal impact,Lee and Ro's fee for their scope of
services range from $535,000 to $769,000 depending upon the completeness of
the work product by IEC.Staff estimates based on the review of the material
submitted by IEC that Lee and Ro's actual costs will most likely be close to the
lower end of the range.
Director Breitfelder indicated that he felt that staff has handled this unusual
situation very well.He inquired with regard to the Caltrans permit if it was
expected to go through until late October.Engineering Manager Ripperger
indicated that that was correct.He indicated that the permits were part of the
whole process in the awarded contract.Director Brietfelder inquired if there are
any legal ramifications in waiving Policy 21.General Counsel Yuri Calderon
indicated that this is an unusual circumstance as the project has already been
started.The District,during a competitive bid process,had two contractors who
tied for second and basically the District is moving to the next responsive bidder
to negotiate.For all practical purposes,the District has substantially complied
with the law as it was a competitive bid process.
General Manager Watton indicated that though the District is a little behind
schedule,Lee and Ro and staff will work hard to complete the project by March
2010 as was originally proposed.
Director Robak indicated that he wished to clarify that the District will not be
spending more on this project than originally budgeted.It was indicated that that
was staffs'intent.Director Robak inquired about the chart within staffs'report
noting the cost differential between IEC and Lee &Ro and it seems that the cost
for the project will be less with Lee &Ro than IEC (the chart is showing
<$55,503>for Scenario 1 and <$89,175>for Scenario 2).General Manager
Watton indicated that staff estimated that the new alignment would cost
approximately $200,000 and the cost would actually be more by approximately
$55,503 for Scenario 1 or $89,175 for Scenario 2.He indicated that the budget
has a contingency built in and staff anticipates spending some of the contingency
money for the additional design work needed while still staying within the budget.
12
Director Robak further inquired why the "District Provided Services"and "Total
Payments"to IEC in Scenario 1 and Scenario 2 were not the same.It was
indicated that it is dependent on whether the District provides the services or Lee
&Ro provides the services.With regard to IEC,the payment is based on
assumptions from the documents received from IEC.At the time the staff report
was prepared and circulated,staff was uncertain what would be received from
IEC.IEC,has since,turned over electronic and other documents that staff is still
reviewing.Staff wished to show best and worst case scenarios.Staff,however,
is optimistic that the District will be able to use the material that they have
developed for the project.Director Robak inquired what the cost per day would
be should the project be delayed.General Manager Watton indicated that staff
has done some preliminary calculations and the cost would be approximately
$300,000 to CWA for a six month delay.However,staff believes that the project
will be completed on time.
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 staffs'recommendation.
9.GENERAL MANAGER
a)ADOPT AN "OPPOSE UNLESS AMENDED"POSITION ON AB 2986
(LENO)RELATING TO WASTE DISCHARGE REQUIREMENTS
(BUELNA)
Communications Officer Armando Buelna indicated that staff is requesting that
the board take an oppose unless amended position on AB 2986.He indicated
that AB 2986 is sponsored by Assemblyman Mark Lena of Mill Valley to address
aging sewer systems.He stated that it would require that the State or the
Regional Water Quality Control Board (RWQCB)issue an annual report card with
a grade of "A"through "F"for every collection,sewer system and treatment plant
in the State of California based on different methodologies that would be
developed by the State or RWQCB.He stated that the grading system's purpose
would be to inform the public about failing or failed water systems in the State so
that problems can be clearly identified and addressed by the public.He indicated
that it is felt that the public's awareness of failing or failed systems,would make
them more supportive of rate increases or other measures to address the failing
facilities.The bill is sponsored by the Friends of the Earth and the San Francisco
Bay Keeper and was motivated by a sewer spill that occurred in Richardson Bay,
Marin County,in January 2008.
13
The bill is opposed by ACWA,the League of California Cities and a number of
other California public organizations.Feedback has been provided to
Assemblymember Leno which also included the elimination of the report card
approach.It was felt that the report card approach may have the opposite effect
and discourage investment in aging or failing systems.They also questioned
how the bonding/rating agencies would view a "bad grade"issued to a failing
system and that the cost of the new program would be placed on the public
agencies through the creation of new fees and additional staff at a cost of
approximately $3 million annually.They felt that the State should identify issues
and challenges that exist within the State sewer systems and develop programs
to provide money and recommendations to address the issues.
Communications Officer Buelna indicated that AB 2986 was recently amended,
however,it stills contains the report card approach.The bill has gone through
the Assembly and is currently being reviewed by the Senate Appropriations
Committee.At this time,no hearing has been requested by the author.He
indicated that while Otay would probably receive a very good grade on its sewer
system as the system is in very good working order,the bill still does raise a
number of issues such as the report card approach,the unknown rating
methodology that would be utilized and the cost of implementation.
Director Breitfelder indicated that he felt the program would benefit those who do
not take good care of their infrastructure,but would burden those who do,with
additional costs.
General Manager Watton indicated that the concern with the bill is the simplistic
rating approach and that this entails another layer of record keeping that would
be redundant.
A motion was made by Director Bonilla,seconded by Director Robak and carried
with the following vote:
Ayes:
Noes:
Abstain:
Absent:
Directors Bonilla,Croucher,Lopez and Robak
Director Breitfelder
None
None
to approve staffs'recommendation.
10.BOARD
a)DISCUSSION OF 2008 BOARD MEETING CALENDAR
General Manager Watton noted that the November 2008 board meeting was
moved to mid-month (November 13).He inquired if the board would consider
14
moving the December board meeting a week out which would provide staff
additional time for the Proposition 218 noticing and would put the November and
December meeting about a month apart.It was requested that District Secretary
Susan Cruz check with all Board members to find a day in December that will
accommodate their schedules.
INFORMATIONAL ITEMS
11.THIS ITEM IS PROVIDED TO THE BOARD FOR INFORMATIONAL
PURPOSES ONLY.NO ACTION IS REQUIRED ON THE FOLLOWING
AGENDA ITEM.
a)UPDATE ON DROUGHT RESPONSE CONSERVATION PROGRAM
(SARNO)
The board received and filed staffs'informational report.
REPORTS
12.GENERAL MANAGER'S REPORT
General Manager Watton introduced new staff members Bob Kennedy who
joined the Engineering Department approximately three months ago and Ted
Cudal,the District's new Safety Officer,who has been working at the District for a
few days now.Chief of Engineering Posada also introduced Erik Berliner,
Engineering Intern,who has been with the District for approximately six months.
General Manager Watton indicated that attached to his GM Report are copies of
some of the mailings to customers (Pipeline Newsletter and the Consumer
Confidence Report)from the District.He indicated that they are full color as a
result of committee recommendations.It is hoped that the publications bright
colors will capture customers'attention and the District will increase the
readership of its publications.
He also shared that included with his report is a copy of a powerpoint
presentation regarding the 20 Gallon Challenge survey results.He indicated that
there is some interesting information in the presentation for those who are
keeping abreast of the effectiveness of the challenge.
He indicated that the board is aware that an employee survey was performed in
May.He stated that the consultant is preparing the final report and in
discussions with President Croucher,the report will be presented at the
September 3,2008 board meeting.
He noted that the artificial turf grass rebate program has been reinstated as the
Consumer Product Safety Commission concluded that the newer artificial turf
15
does not contain high amounts of lead.CWA has sent out press releases and
the program will be retroactive to the date of suspension (June 26,2008).
He indicated that the District began participating in the MWD rebate programs
(July 1,2008)and is fully engaged with the programs (smart controller,rotating
sprinkler nozzle,high efficiency clothes washer and high efficiency toilet rebate
programs).
General Manager Watton also indicated that the District has engaged PBS&J,
Ms.Karen Keese,to review the District's rates and provide recommendations on
various customer rates.He indicated that Ms.Keese is very experienced and is
performing rate studies for other Districts within the county.Her work with other
agencies will provide the District information about what other District's are doing
and different approaches.
He noted on pages five through seven of his report lists the many projects that
Engineering is accomplishing.He indicated that he would not review each item,
but he wished to highlight that operations and engineering are very busy.
He indicated that eight meters were sold in June.He noted that this is down from
the monthly highs of 200.However,this is a positive as meters are still being
sold though the economy has slowed.
He stated that deliveries to Mexico has ceased as agreed.He indicated that the
District did receive the back payments from Mexico and anticipates a full
recovery through the additional water deliveries and the payments.The District
is currently working with CWA and the IBWC on extending the agreement for the
emergency water deliveries.He noted that the water delivered is Mexico water
from the Colorado River.The new agreement will be similar to the old
agreement with the exception of the capital cost recovery component as it has
already been paid for.
Director Bonilla inquired if Mexico has expressed their need for more water.
General Manager Watton indicted that they have and they were very concerned
with keeping the contract in place and promptly made the back payments on the
capital recovery costs.It was discussed that Mexico is connected to the District's
system,but they are not taking water at this time based on the agreement for the
summer months.Per the contract,the District will deliver whatever Mexico
requires as long as it does not impact the District's customers.The water
deliveries is a very flexible arrangement.
a)SAN DIEGO COUNTY WATER AUTHORITY UPDATE
President Croucher indicated that CWA is monitoring very closely the
effectiveness of the $1.8 million conservation ad program.He also shared that
16
Vallecitos WD and Fallbrook PUD have donated $5,000 each to the Water
Conservation Garden.
He stated that CWA is continuing to track water supplies and the Bay Delta
issues.He indicated that the State Governor will be holding a press conference
today at 2:45 p.m.to announce that,due to state legislators'inability to agree on
the state budget,he will not be signing any bills until a budget is agreed upon.
The consequence of unsigned bills is that they are automatically rejected after 14
days.
General Manager Watton indicated that a dispute between Olivenhain MWD,City
of San Diego and CWA has developed over the water quality in Lake Hodges.
Discussions will be taking place in the next 60 to 90 days to see if the dispute
can be resolved.CWA will be also be discussing the issue in closed session.
13.DIRECTORS'REPORTS /REQUESTS
Director Robak indicated that there was an article in the paper evaluating the 20
Gallon Challenge and how effective each agency has been with the challenge.
He inquired where the District rated in the evaluation.It was indicated that the
District was at 6.8%savings.It was noted that many of the districts were fairly
low and the program has not seen the success that was hoped for.Director
Robak indicated that he was happy to see that CWA has reinstated the artificial
turf rebate program.He indicated that he felt that they were a bit premature in
their action to cease the program and he was happy to see it quickly reverse
course.He also stated that he wished to discuss with the General Manager and
Water Conservation Manager that if the District provides a list artificial turf grass
vendors,that we assure they are approved by the Better Business Bureau.
Director Robak indicated he will be doing his part and plans to remove the grass
from his yard as well.
Director Lopez indicated that he attended the GIS presentation provided by Chief
Information Officer Geoff Stevens and GIS Manager Ming Zhao at the ESRI
conference.He stated that the presentation is very worthwhile and he
recommended that a copy of the presentation be provided to the board members.
It was noted at the conference that Otay is recognized as one of the top ten
users of GIS systems in the County and ESRI had thanked the District for the
many tours they have provided to various agencies and organizations interested
in implementing GIS systems.He stated that Chief of Engineering Rod Posada
made presentations to the Chula Vista Interagency Water Task Force regarding
the drought issues and the lessons the District learned from the Fenton Business
Center misconnection.He indicated that he felt the misconnection presentation
should be viewed by not only the county of San Diego,but nationally as well,so it
can be shared what the District has learned and the processes that it has put into
place to assure that the issue does not occur again.
17
Director Bonilla indicated that he concurred with Director Lopez on the
presentations and,in a discussion with General Manager Watton,had
commended Chief of Engineering Rod Posada on the presentations he had
proved the Task Force.
Director Bonilla also inquired about the difference between a Level II and Level III
drought alert.General Manager Watton indicated that the largest difference is at
Level III the District would start restricting meter sets,essentially cutting growth.
He inquired if that should not be noted in the customer Pipeline Newsletter to
better clarify the difference in the levels as they seem to be the same as printed
in the Drought Watch declaration chart in the newsletter.It was indicated that the
verbiage will be updated to note that growth will be affected at Level III.
Director Breitfelder indicated that he just wished to make an observation and
thank Chief Financial Officer Beachem for achieving better returns on the
District's investments than what LAIF has earned for the last several months.
14.PRESIDENTS REPORT
President Croucher indicated that the board would like to move forward with the
General Manager's review and requested that an Ad Hoc Committee be
scheduled for the General Manager's review.He indicated that the Ad Hoc
Committee members will include Director Bonilla as chair and himself.He
indicated that the committee would like to follow CWA's process and an
evaluation form will be developed and sent out through District Secretary Susan
Cruz to all Directors.He also stated that the customer Pipeline Newsletter was
looking very good and noted that Communications Officer Buelna is also the
editor of the CSDA County newsletter.
RECESS TO CLOSED SESSION
15.CLOSED SESSION
The board recessed to closed session at 4:50 p.m.to discuss the following
matters:
a)CONFERENCE WITH LEGAL COUNSEL -POTENTIAL LITIGATION
[GOV-ERNMENT CODE §54956.9(b)]
1 CASE
b)CONFERENCE WITH LEGAL COUNSEL -PENDING LITIGATION
[GOVERNMENT CODE §54956.9(a)]
I)MULTIPLE CASES RELATED TO THE FENTON BUSINESS
CENTER AND FILED WITH THE SUPERIOR COURT OF THE
COUNTY OF SAN DIEGO RECENTLY CONSOLIDATED UNDER
18
CASE NO.37-2007-00077024-CU-BC-CTL;AND TWO NON-
CONSILIDATED CASES,NOS.37-2008-83163-CU-PO-CTL AND
37-2008-00086689-CU-PO-CTL
II)1 CASE -AMERICAN PROTECTION INSURANCE V.OTAY
WATER DISTRICT,DISTRICT COURT SOUTHERN DISTRICT OF
CALIFORNIA,#08-CV-0662-JM-POR
III)OTAY WATER DISTRICT V.NORTHROP GRUMMAN
RETURN TO OPEN SESSION
16.REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION.THE BOARD
MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION
1)A motion was made by Director Bonilla,seconded by Director
Breitfelder and carried with the following vote:
The board reconvened at 5:32 p.m.General Counsel Yuri Calderon indicated
that three actions were taken in closed session:
Ayes:
Noes:
Abstain:
Absent:
Directors Bonilla,Breitfelder,Croucher,Lopez and
Robak
None
None
None
to deny the tort claim filed by Bremco Construction.
2)A motion was made by Director Breitfelder,seconded by Director
Bonilla and carried with the following vote:
Ayes:
Noes:
Abstain:
Absent:
Directors Bonilla,Breitfelder,Croucher and Lopez
Director Robak
None
None
to retain the Hilding Law Firm in the matter of American Protection
Insurance v.Otay Water District.
3)A motion was made by Director Bonilla,seconded by Director
Breitfelder and carried with the following vote:
Ayes:Directors Bonilla,Breitfelder,Croucher,Lopez and
Robak
Noes:None
19
Abstain:None
Absent:None
to accept the mediator's settlement in the Northrop Grumman
matter.
General Counsel Calderon indicated that no other reportable actions were taken
in closed session.
17.ADJOURNMENT
With no further business to come before the Board,President Croucher
adjourned the meeting at 5:33 p.m.
President
ATTEST:
District Secretary
20
AGENDA ITEM 6a
STAFF REPORT
MEETING DATE:November 13,2008
Ron Ripperger ~
Engineering Manager
Rod posada~~a~
Chief,Engineering
Manny Magan~~
Assistant General Mknag~,Engineering and Operations
TYPE MEETING:
SUBMITTED BY:
APPROVED BY:
(Chief)
APPROVED BY:
(Asst.GM):
Regular Board
H.Damon Braden ~
Senior Civil Engineer
PROJECT/
SUBPROJECTS:
P2440-DIV.
003000 &NO.
004000
2
SUBJECT:Amendments to Utility Agreements with Caltrans related to
Construction of the SR-905 Utility Relocations
GENERAL MANAGER'S RECOMMENDATION:
That the Otay Water District (District)Board authorizes the
General Manager to sign Amendments to two (2)separate Utility
Agreements (Nos.31759 and 31921)with the California Department
of Transportation (Caltrans)(see Exhibit A for project
location).
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To obtain Board authorization for the General Manager to sign
Amendments to Utility Agreements with Caltrans (Nos.31759 and
31921;see Exhibits B-1 and B-2).
ANALYSIS:
In 2003 Caltrans notified the District of its intent to
construct SR-905 from Heritage Road to SR-125 within Otay Mesa.
Subsequently,the District entered into several Utility
Agreements with Caltrans to establish prior rights and cost
sharing for relocation of District existing and proposed
utilities that were in conflict with Caltrans'design.This
current action addresses Amendments to two (2)of the existing
Utility Agreements.At the October 9,2008 Board Meeting,the
Board authorized the General manager to sign Amendments to four
(4)existing SR-905 Agreements (Nos.31755,31756, 31757,and
31758).
Caltrans requested the District to design and relocate the
existing utilities at Pacific Rim Court,Cactus Road,and
Gailes/Dublin Road and to prepare the design contract documents
for this effort.This work has since been completed.Due to
the complexity of the relocation of utilities at Britannia
Boulevard and Airway Road/Harvest Road,Caltrans has requested
that the District provide design plans for these locations to be
incorporated into the Cal trans overall SR-905 design and
construction.Caltrans is currently in the process of
constructing Britannia Boulevard and Airway Road/Harvest Road as
part of the overall SR-905 project.
The original cost estimates provided for the two (2)Utility
Agreements were based on known conditions and understandings at
the time each Agreement was executed.Due to changes in field
conditions,conflicts with other utilities,other agencies
planned utilities,and Caltrans'requested design changes,the
actual project costs exceeded the estimated costs.Upon
execution of these Amendments the District will invoice Caltrans
for the additional costs.
Caltrans has assured Staff that the amounts to be reimbursed to
the District in the Amendments have been set aside in the
authorized funding for the SR-905 construction.Following is a
summary of the potential liabilities and reimbursements for each
Amended Utility Agreement.
Agreement Reimbursed Previous Net
Number to Otay Agreement to Otay
31759 $1,109,838 $475,030 $634,808
31921 $159,077 $117,004 $42,073
Total $1,268,915 $592,034 $676,881
FISCAL IMPACT:~
The total budget for ClP P2440,as approved in the FY 2009
budget,is $2,460,000.Expenditures to date are $3,286,565.
Total expenditures,plus outstanding commitments and forecast to
date,are $2,408,560 which includes the anticipated Caltrans
reimbursement of $1,268,915 (see Attachment B for budget
details).
2
STRATEGIC GOAL:
This project supports the District's Mission Statement,"To
provide safe,reliable water,recycled water,and wastewater
services to our community in an innovative,cost efficient
water-wise and environmentally responsible manner,"as well as
the General Manager's vision,"...prepared for the future..."by
guaranteeing that the District will always be able to meet
future water supply obligations and plan,design,and construct
new facilities.
LEGAL IMPACT:
Legal counsel reviewed this Utility Agreement for consistency and
content.
~rvv~+f"rt-:-r-)-
General Manager U~
P,\WORKING\P2440\STAFF REPORTS\BDll~13~08,STAFF REPORT,AMENDMENTS TO UTILITY AGREEMENTS WITH CALTRANS FOR SR~905 UTILITY
RELOCATIONS,(HDB~RR).DOC
HDB/RR/RP:jf
Attachments:Attachment A
Attachment B
Exhibit A
Exhibit B-1
Exhibit B-2
3
SUBJECT/PROJECT:
P2440-
003000&0040000
ATTACHMENT A
Amendments to Utility Agreements with Caltrans related to
Construction of the SR-905 Utility Relocations
COMMITTEE ACTION:
The Engineering,Operations,and Water Resources Committee reviewed this
item at a meeting held on November 3,2008 and the following comments
were made:.
•Cal trans notified the District in 2003 of its intent to construct
SR-905 from Heritage Road to SR-125 within the Otay Mesa Area.The
District then entered into several Utility Agreements with Caltrans
establishing prior rights and cost sharing for the relocation of
the District's facilities that will be in conflict with new SR-905.
•Some of the agreements specified that Otay would design and
relocate existing utility lines including construction.
•Caltrans requested that the District provide design for the
relocations at Britannia Boulevard and Airway Road/Harvest Road and
Caltrans would do the construction
•Utility Agreement Amendments are devised to accommodate changes
such as differing field conditions,conflicts with other utilities
and other agencies planned utilities discovered during the
construction of SR-905 and Caltrans changes to the highway design.
•Staff indicated that once the amendments to the Utility Agreements
(Nos.31759 and 31921)have been signed,the District will invoice
Caltrans for the additional costs of $676,881 for both agreement.
•It was noted that the proposed amended agreements are similar to
those approved by the board at the October 9,2008 board meeting.
Following the discussion,the committee supported staffs'recommendation
and presentation to the board on the consent calendar.
ATIACHMENTB
OtavWater District
P244G-1·905Utility Relocations
DateUpdated:Oct.06,2008
Outstanding Projected Vendor!Budget Committed Expflnditures Commitment FinalCost Comments
$2,460,000 &Forecast
Planning
In House/Labor 60,610 60,810 60,810
Professional LegalFees 340 340 340 Burke,Williams,Sorensen UP
Service Contracts 2,060 2,060 2,060 Garcia Calderon &Ruiz LLP
Infraslructure.Materails &Supplles 6 6 6 FergusonWaterworks
emporary laoor 112 112 112 SedonaStl\ffing Services
Total Planning $72,328 $72,328 $$72,328
Design
In House/labor 113,603 113,603 113,603
ConsultantContracts 224,700 224,700 224,700 HORine.
12,000 12,000 12,000 Bowen &Associates
66,023 66,023 66,023 Hirsch &Company
11,040 11,040 11,040 Swinerton Management
Service Contracts 2,100 2,100 2,100 DCBReprographics
70 70 70 San Diego Daily Transcripts
100 100 100 Clarkson lab&Supply Inc.
Printing 6 6 8 PettyCashCustodian
Frank &Son Paving Inc.
Total Design $430,013 $430,012 $$430,012
Construction
In HouselLabor 213,650 213,650 213,650
AdvertisemenVBid 326 328 328 Union Tribune
Professional.Legal Fees 437 437 437 Garcia Calderon &Rulz LLP
ConsultantContracts 37,271 37,271 37,271 RBF Consulting
1,620 1,620 1,620 Southern California Soli
20,640 20,640 20,640 SwlnertonManagement
Construction Contracts 1,021,223 1,012,028 0,195 1,021,223 Zondiros Corporation
524 524 524 HO SupplyWaterworks Ltd.
654 654 654 Clarkson Lab &SupplyInc.
000,670 000,670 000,670 Department ofTransportation
Retention 46,015 46,015 46,015 Zondiros Corporation
RentsiLeases(Temp.Easement)1,750 1,750 1,750 Gateway ParkOwners Association
6,625 6,825 6,625 Brown Field Business Park LP
1,000 1,000 1,000 Dante Corp.
Settlements (Easement)1,000 1,000 1,000 Vista South MelroseLP
Materials 216 216 216 C.W.Mcgralh
163 163 163 United Rentals Northw6St Inc
155 155 155 HSS Rentx Inc
256 258 258 PenhallCo.
AMRMeters 165 165 165
Metor BushIngs 6 6 6
Sewer Fittings&Green Bell 24 24 24
Adaptor ACP 914 1,700 1,700 1,700
GateValve 2,247 2,247 2,247
PipeCLC Steel 325 325 325
Flange Weld On 71 71 71
Reducer C!istlron 323 323 323
ValveBall 37 37 37
SaddleTapACP 2inch 03 03 03
Corp 110 110 110
ProfessionalLegal Fees 500 500 500 First American Tille
Waterloss 228 228 228
TolalConstruction $2,271,654 $2,262,450 $0,105 $2,271,655
Caltrans UtilityAgreements
ExpenseIReimbursement (55,270)(55,270)(55,270)Ulirlty Agreement 31728
ExpenseIReimbursement (43,640)(43,640)(43,640)Utility Agreement 31755
ExpenseIReimbursement 617,434 617,434 617,434 Utility Agreement 31756
ExpenseIReimbursement (350,025)(350,025)(350,025)Utility Agreement 31757
ExpenseIReimbursement 237,515 237,515 237,515 Utility Agreement 31757/31759
ExpenseI Relmbursem~nt (443,726)(443,726)(443,728)Utility Agreement 31758
ExpenseIReimbursement 237,515 237,515 237,515 Utility Agreement 31758/31759
Expense IReimbursement (634,.808)(634,808)(634,606)UtilityAgreement 31759
Expense I Reimbursement 2,350 2,350 2,350 UtilityAgreement 31779
Expense I Reimbursement (6,600)(6,600)(6,600)UtilityAgreement31817
Expense I Reimbursement (42,073)(42,073)(42,073)UtilityAgreement31021
Expense I Reimbursement 117,004 117,004 117,004 UtilityAgreement 31921/31759
Total Caltran_(366,335)520,865 (867,200)(366,335)
Grand Total $2,408,580 $3,286,565 $(878,005)$2,408,560
10128/2008 P:IWORKING\CIP P2440lStaffReportslP2440_Staff Report_Attachment B 101208.xls
PROJECT
SITE
IMPERIAL
BEACH
OTAYMESARD
(J)PACIFIC RIM CT
UTILITY AGREEMENTNO.31759
CACTUSRO
UTILITY AGREEMENTNO.31759
®GAlLES BLVOIOUBLIN DR
UTILITY AGREEMENTNO.31921
OTA Y WA TER DISTRICT
SR-905 UTILITY RELOCATIONS
EXHIBIT A
STATE OF CALIFORNIA.DEPARTMENT OF TRANSPORTATION
AMENDMENT TO UTILITY AGREEMENT
DATE:April 2,2008
13-EX-24 (REV 412002)
Page 1 on
Co
SD
Rte
905
KPCP.M.)
R 9.31R18.62 (R5.81R11.6)
EA
091821
Federal AidNo:A905(015)
Owner's File:elP P2440-0040001 Work Order 30131
FEDERAL PARTICIPATION:On the Project
On the Utilities
FIRST AMENDMENT TO UTILITYAGREEMENT NO.31759
I.8l Yes
~Yes
DNo
DNo
WHEREAS,the State ofCalifomia,acting by and through its Department ofTransportation,hereinafter called STATE
and OTAY WATER DISTRICT,hereinafter called OWNER,have entered into that certainUtility Agreement No.31759.dated
March 15,2006,which Agreement sets forth the tenns and conditions pursuant to which OWNER will relocate by owner's own
forces through competitive bid the existing pipeline within the proposed SR905 right ofway.The pipeline will be abandoned and
the appurtenances will be relocated prior to construction has now changed.The 10 inch potable water line within the proposed
Route 905 right ofway will be replaced with a 12 inch welded steel pipe within a 24 inch steel casing andrelocated in the same
area butina deeper location to provide adequate vertical clearance from the SR-905 alignment,Project No.091824;and,
WHEREAS,in the perfonnance of said work,increased costs over and above those estimated at the time of the
executionofsaid Agreementwere incurred primarily due to a revision of the plans and,
WHEREAS,it has been detennined that,since final costs have overrun the amount shown in said Agreement by
2745.3061%.and when the increased cost exceeds by 25%the estimated amount set forth in said Agreement,said Agreement
shall be amended to show 111e increased cost ofthe work to the STATE;and,
WHEREAS,the estimated cost to the STATE ofthe work to be perfonned under saidAgreement was $41,955.00,and
by reason ofthe increased costs referred to above,the amended estimated cost to the STATE is $1,151,793.24.
NOW,THEREFORE,it is agreed betweenthe parties as follows:
l.The estimated cost to the STATE of $41,955.00 as set forth in said Agreement is hereby amended to read
$1,151,793.24.
2.WORK TO BE DONE
In accordance with revised Notice to Owner 31759-R dated 01/28/08 OWNER shall relocate OWNER's water
facilities.All work shall be perfonned substantially in accordance with OWNER's Plan No.R-l dated 01122108
consisting ofone sheet,a copy ofwhich is on file in the District Office ofthe Department ofTransportation at4050
Taylor Street,San Diego,CA 92110.Deviations from the OWNER's plan described above initiated by either the
STATE or the OWNER,shall be agreed upon by both parties hereto under a Revised Notice to Owner.Such
Revised Notices to Owner,approved by the STATE and acknowledged by the OWNER,will constitute an
approved revision ofthe OWNER's plan described above andare hereby made a part hereof.No workundersaid
EXHIBIT B-1
AMENDMENT TO UTILITY AGREEMENT EA 091821
FIRST AMENDMENT TO
UTILITYAGREEMENTNO.31759
13-EX-24 (REV 4/2002)
Page 2 on
deviation shall commence prior to receipt by the OWNER of the Revised Notice to Owner.Changes in the scope
ofthe work will require an amendment to this Agreement in addition to theRevised Notice to Owner.
3.All other terms and conditions ofsaid Agreement remain Wlchanged.
*****************
:
ii!,
).
I I
!I·I .ii
AMENDMENT TO UTILITY AGREEMENT EA 091821
FIRST AMENDMENT TO
UTILITY AGREEMENT NO.31759
13-EX-24 (REV 4/2002)
P£lge 3 on
THE ESTIMATED TOTAL COSTTO STATE FOR ITS SHARE OF THEABOVE DESCRIBED WORKIS $1,151,793.24.
FUND TVPB BA AMOUNT
Design Funds $
Construction Funds $
RWFunds 091821 $1,109,838.24
CERTIFICATION OF FUNDS
Ihereby certify upon my own pcrsonal knowledge that budgeted funds are
available for the period and purpose orIhe expcnditlll'e shown here.
~/PU-t:t1 ~~""~L '-/1f /(lrg
HQ Accounting oniccr (/Date
ITEM CIIAP STAT PV AMOUNT
:}'fi.'fR~-(fiJI -'):.v<Z-2-0 (f;;':l-<Xt'5'07!dV \ I tC1 1~3!.3.;'1./
;(~110-.;.0'1 -t''O«'l/LO r-n[r71-z...r,;,',fe'(OB
Already encumbered
Total
$41.955.00
$1,151,793.24
IN WITNESS WHEREOF,the parties hereto have executed this FIRSTAMENDMENT to
Utility Agreement No.31759 this day of ,2008.
OWNER:OTAYWATERDISTRICT
By
Name/Title Date
By
CarolVu
Utility Coordinator
Datc
By
DO NOT WRITE BELOW -FORACCOUNTING PURPOSES ONLY
054
UTILITY COMPLETES:
OBJ DOl,LAR
CODE AMOUNTEA
II
PLANNING ANDMANAGEM ENTTOCOMPLETEUNSHADEO FIELDS:
CHG
D1ST
EA FUNDING VERIFIED:REVIEWIREQUEST FUNDING:
Sign>
Pri Lourdes DUllgca
Sign>
Print>~rCarol Vu
R/W l'lanning and Management Date Utility Coordinator Date
Distribution:4 originals to RIW Accounting
4 originals returned to RIW Planning and Management
STATE OF CALIFORNIA.DEPARTMENT OF I t<ANSPORTATiON
UTILITY AGREEMENT
RW 13·5 (REV 412000)
Page 1 of4
Dist Co Rte KP (P.M.)EA
11 SD 905 R9.31R18.62 091821
(R5.8/Rll.6)
FEDERAL AID NUMBER A905 (015)OWNER'S FILE
FEDERAL PARTICIPATION:On the Project I:8J Yes o No On the Utilities DYes ~No
UTILITY AGREEMENT NO.,_~31:;.:::9:.:2.;:;.1 ---.;DATE _
The State ofCalifornia acting by and through the Department ofTransportation,hereinafter called "STATE"proposes to
construct a new freeway (Phase 1)in San Diego County in San Diego from 1.1 Ianeast ofthe Ronte 905/805 separation to 0.6 Ian
west ofthe Mexico Border and OTAY WATER DISTRICT,hereinafter called "OWNER",owns and maintains electric facilities
within the limits ofSTATE's project.
It is hereby mutually agreed that;
1.WORK TO BE DONE
In accordance with Notice to Owner 31757 dated 01112/06 OWNER shall relocate OWNER's water facilities.All
work shall be perfonned substantially in accordance with OWNER's drawing No.C-3 dated 03/04/08,a copy ofwhich
is on file in the District Office ofthe Department ofTransportation at 4050 Taylor Street,San Diego,CA 92110.
Deviations from the OWNER's plan described above initiated by either the STATE or the OWNER,shall be agreed
upon by both parties hereto under a Revised Notice to Owner.Such Revised Notices to Owner,approved by the
STATE and acknowledged by the OWNER,will constitute an approved revision of the OWNER's plan described
above and are hereby made a part hereof.No work nnder said deviation shall commence prior to receipt by the
OWNER of the Revised Notice to Owner.Changes in the scope of the work will require an amendment to this
Agreement in addition to the Revised Notice to Owner.
n.LIABILITY FOR WORK:
Owner completed the design for the relocation water facilities that were in conflict with construction ofRoute 905 011
Gailes BoulevardlDublin Drive crossing.Subsequently,Otay Water District submitted revised design drawings to the
encroachment department prior to construction.The design plans changed the location ofthe pipeline into the City of
San Diego's sewer easement.The revised plans were approved without circulating through all the departments.The
error was caught after constmction had started and the new location of the waterline would prevent the State fi'om
constructing mandated sewer related work.With the City of San Diego's approval it was decided the water line
installed by Otay Water District would beused as a redundant sewer line.The state agreed to pay for the installed cost
of the water line that will now be used as part of the redundant sewer system.The STATE is 100%liable for the
wasted/useless work.
III.PERFORMANCE OF WORK:
Owner agrees to perform the herein-described work to beperformed by a contract with the lowest qualified bidder,
selected pursuant to a valid competitive building procedure,and to furnish or cause to be fUlnished all necessary
labor,materials,tools and equipmentrequired therefore,and to prosecute said work diligently to completion.
EXHIBIT B-2
UTILITY AGREEMENT (Cant.)
RW 13-5 (REV 4/2000)
IV.PAYMENT FORWORK:
Page 2of4
IUTILITY AGREEMENT NO.31921
The STATE shall pay its share cftheactual cost ofthe herein-described work within 90 days after receipt of
Five (5)copies ofthe OWNER's itemized bill in quintuplicate,signed bya responsible official ofOWNER's
organization and prepared on OWNER's letterhead,compiled on the basis ofthe actual cost and necessary cost and
expense.The OWNER shall maintain records ofthe actual costs incurred and charged or allocated to the project in
accordance with recognized accounting principles.The OWNER's billing cost to STATE is $159,076.71.
It is understood and agreed that the STATE will not payfor any betterment or increase in capacity ofOWNER's
facilities inthe new location and that OWNER shall give credit to the STATE for the accumulated depreciation or
"used life"on the replaced facilities and for the salvage value ofany material orparts salvaged and retained or sold
by OWNER.
The OWNER shall submit a final bill to the STATE within 360 days after the completion ofthe work described in
Section 1.above.Ifthe STATE has notreceived a final bill within 360 days after notification ofcompletion of
OWNER's work described in Section1.ofthis Agreement,and STATE has delivered to OWNER fully executed
Director's Deeds,Consents to Common Use or Joint Use Agreements as required for OWNER's facilities,STATE
will provide written notification to OWNER ofits intent to close its file within 30 days and OWNER hereby
acknowledges,to the extent allowed by law,that all remaining costs will be deemed to have been abandoned.lfthe
STATE processes a final bill for payment more than 360 days after notification ofcompletion ofOWNER's work,
payment ofthe late bill maybe subject to allocation and/or approval bythe California Transportation Commission.
The final billing shall be in the form ofan itemized statement ofthe total costs charged to the project,less the credits
provided for in this Agreement,and less any amounts covered by progress billings.However,the STATE shall not
pay final bills which exceed the estimated cost ofthis Agreement without documentation ofthe reason for the
increase ofsaid cost from the OWNER and approval ofdocumentation by STATE.Except,ifthe final bill exceeds
the OWNER's estimated costs solely as the result ofa revised Notice to Owner as provided for in Section I,a copy
ofsaid revised Notice to Owner shall suffice as documentation.In either case,payment ofthe amount over the
estimated costofthis agreementmay be subject to allocation and/or approval by the California Transportation
Commission.
In any event ifthe final bill exceeds 125%ofthe estimated cost ofthis agreement,an Amended Agreement shall be
executed by theparties to this Agreement prior to the payment ofthe OWNER's final bill.Any and all increases in
costs that are the direct result ofdeviations from the work described in Section I ofthis Agreement shall have the
prior concurrence ofSTATE.
Detailed records from which the billing is compiledshall be retained by the OWNER for a period ofthree years
from the date ofthe final bill and will be available for audit by State andlor Federal auditors.Owner agrees to
comply with Contract Cost Principles and Procedures as set forth in 48 CFR,Chapter 1,Part 31,et seq.,23 CFR,
Chapter I,Part 645 and/or 18 CFR,Chapter 1.Parts 101,210,etall Ifa subsequent State and/or Federal audit
determines payments to be unallowable,OWNER agrees to reimburse STATE upon receipt ofSTATE billing.
V.GENERAL CONDITIONS:
All costs accl1led by OWNER as a result ofSTATE's request ofJune 16,2004 to review,study and/or prepare
relocation plans and estimates for the project associated with this Agreement may be billed pursuant to the terms
and conditions ofthis Agreement.
UTILITY AGREEMENT (Cont.)
RW 13-5 (Rev 4/2000}
V.GENERAL CONDITIONS:(Continued)
Page 3 of 4
I UTILITY AGREEMENT NO.31921
IfSTATE's project which precipitated this Agreement is canceled ormodified so as to eliminate the necessity of
work by OWNER,STATE will notify OWNER in writing and STATE reserves the right to terminate this
Agreement by Amendment.The Amendment shall provide mutually acceptable terms and conditions for
terminating the Agreement.
All obligations ofSTATE under the terms ofthe Agreement are subject to the passage ofthe arumal BudgetActby
the State Legislature and the allocation ofthose funds by the California Transportation Commission.
OWNER shall submit a Notice ofCompletion to the STATE within 30 days ofthe completion ofthe work described
herein.
It is understood thatsaid highway is a Federal aid highway and accordingly 23 CFR 645 is hereby incorporated into
this Agreement.
'I<'"01<'"
!!
UTILITY AGREEMENT (Cont.)
RW 13-5 (REV 4/2000)
Page 4 of4
IUTILITY AGREEMENT NO.31921
THE ESTIMATED COST TO STATE FOR ITS SHARE OF THE ABOVE DESCRIBED WORK IS $159,076.7].
CERTIFICATION OF FUNDS
Ihereby certify upon myown personal knowledge thatbudgeted funds are
available for the period and purpose ofthe expenditureshown here.
HQ Accountin~Officer Dnle
ITEM CHAP STAT FY AMOUNT
FUND TYPE EA AMOUNT
Design Funds $
Construction Funds $
RWFunds 091829 $159,076.71
IN WITNESS WHEREOF,the above parties have executed this Agreement the dayand yearabove written.
L;,;to 08
By +-->"'t"l'-l'r'----""--\JI--=--+-=-..:------+--f----
OWNER:OTAY WATER DISTRICT
I
By~-t-t~-e------------D-at-e-.~
DO NOT WRITE BELOW·FOR ACCOUNTING PURPOSES ONLY
EA FUNDING VERIFIED:
f~
Ij ,, !
iI
i
ft[,.~
Date
Date
Carol Vu
Utility Coordinator
UTILITY COMPLETES:
SPECIAL OBl DOLLAR
DESIGNATION FFY FA CODE AMOUNT
054
054
Print>
REVIEW I REQUEST FUNDING:
Sign>
SUB
JOB
By 0.-.~Qi.~
Carol Vu
Utility Coordinator
DateR1WPlanningandManagement
Print>
Sign:>
Distribution:3 originals to RfW Accounting
3 originals retullled to RfW Planning &Management
PLANNING AND MANAGEMENT COMPLETES EXCEPTSHADED FIELDS
DOCUMENT CHG
NUMBER OIST UNIT mST EA
VA
AGENDA ITEM 6b
STAFF REPORT
Ii,
November 13,2008TYPEMEETING:
SUBMITTED BY:
Regular Board
H.Damon Braden ~
Senior Civil Engineer
MEETING DATE:
PROJECT I
SUBPROJECT:
R2081-
001103
DIV.
NO.
5
APPROVED BY:
(Chief)
APPROVED BY:
(Ass!.GM):
SUBJECT:
Ron Ripperger ~
Engineering Manager
Rod posada~~~
Chief,Engineering
Manny Magan~~
Assistant General~anager,Engineering and Operations
Change Order No.1 to the Contract with ARB,Inc.for the 20-
Inch Lane Avenue Conversion Project
GENERAL MANAGER'S RECOMMENDATION:
That the Otay Water District (District)Board approve Change
Order No.1 to the existing contract with ARB,Inc.(ARB),for
construction of the 20-Inch Lane Avenue Conversion Project in an
amount not to exceed $78,938 (see Exhibit A for project
location).
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To obtain Board authorization for the General Manager to execute
Change Order No.1 (see Exhibit B)in an amount not to exceed
$78,938 to the contract with ARB.
ANALYSIS:
At the January 14,2008 Board Meeting,ARB was awarded the
construction contract for the 20-Inch Lane Avenue Conversion
Project.The project construction began in February 2008.
Overall,construction is 90%complete.
Change Order No.1 provides for reimbursement to the Contractor
in an amount not to exceed $78,938 for issues concerning the
referenced project.A summary of each issue follows.
The first issue is the cost of videotaping the pipe to identify
and confirm undocumented connections.This item was requested
in the Engineering,Operations,and Water Resources Committee
meeting by Director Croucher.In retrospect,it was a wise
decision because four undocumented connections were found.
These connections had previously been abandoned.However,
eliminating them removed the possibility,albeit remote,that
there could be an erroneous future connection.The actual total
cost of the TV related work is $42,000.
The second issue relates to which brand and type of flow meter
is to be used on the project.During the submittal process and
related communications,confusion arose regarding which meter to
supply.Ultimately,Staff directed ARB to install the
McCrometer meters called for in the Contract Documents.It was
agreed that,because of the miscommunication regarding which
meters to use,the District would split the re-stocking fee with
ARB for the meters initially ordered by ARB.
The third issue concerns providing spools at the valve
locations.ARB installed valves without spools.A detail for
one connection on the plans shows this arrangement.However,
the Water Agency Standards (WAS)call for spools at valves.In
subsequent discussions concerning plan precedence versus WAS it
was agreed that the District would pay for the spools because
the detail was unclear and arguably in conflict with the WAS.
The fourth issue is related to the ability of butterfly valves
to open without conflicting with the pipe lining.Because ARB
installed valves without spools on the 20-Inch pipe the valve
would not open completely because the pipe lining interferes
with the valve's disc.In order to have the valve's disc clear
the pipe lining,ARB ordered and installed 22-Inch pipe which
results in an undesirable condition where the 20-Inch pipe
lining is entirely exposed within adjacent 22-Inch pipe.Staff
and ARB determined an acceptable resolution to the undesirable
condition pipe size condition.
The fifth issue relates to finding unknown conditions requiring
additional work.An electrical conduit bank was found in direct
conflict with the pipeline elevation.In addition,at that same
location,a gas line was found.To go around these obstacles
required additional parts and labor.
2
The sixth item is a plan clarification.The plans call for
fence enclosures at the 927-1 and 944-1 metering stations for
personnel protection from golf balls and for general security
steel mesh covers were specified.The fence enclosures as
detailed did not have adequate structural integrity to support
the steel mesh covers.There were additional structural fence
elements that were required.Staff and RBF analyzed the use of
fabric mesh for the covers and it was determined that the
physical protection and security needs would not be met.
Staff hired RBF Consulting (RBF),due to their expertise with
construction claims and their experience,in particular,with
pipeline work,to analyze and negotiate ARB's claim.RBF's
analysis,supported by Staff's information,found that the
agreed upon amounts,as summarized below,are reasonable.An
important point in the final resolution of the issues will be
that ARB relinquish their right to any further claims for
compensation,with respect to the project.
Item Issue Amount
1 CCTV of the pipe $42,000
2 Meter Re-stocking (50%Share)$10,138
3 Spools $6,000
4 Valve Opening $5,000
5 Unknown Conditions $9,500
6 Structure for Steel Netting $6,300
Total $78,938
FISCAL IMPACT:
The approved total budget for CIP R2081,as approved in the FY
2009 budget,is $1,090,000.Expenditures to date are $845,165.
Total commitments to date,including this Change Order,are
approximately $1,063,097.(See Attachment B for budget detail.)
The Project Manager anticipates that based on the attached
financial analysis that the budget will be sufficient to support
this project.Finance had determined that 100%of the funding
for this project is available from the Replacement Fund.
STRATEGIC GOAL:
This project supports the District's Mission statement,liTo
provide the best quality of water and wastewater services to the
customers of Otay Water District,in a professional,effective,
efficient,and sensitive manner ..."This project fulfills the
District's Strategic Goals No.1 -Community and Governance,and
3
No.5 -Potable Water,by maintaining proactive and productive
relationships with the project stakeholders and by guaranteeing
that the District will provide for current and future water
needs.
LEGAL IMPACT:
None.
P:\WORKING\R2081\STAFF REPORTS\BOD 11-13-08,Staff Report,ARB c.o.#1 for Lane Ave,(HDB-RR).doc
RR/RP:jf
Attachments:Attachment A
Attachment B
Exhibit A
Exhibit B
4
SUBJECT/PROJECT:
R2081-001103
ATTACHMENT A
Change Order No.1 to the Contract with ARB,Inc.for the
20-Inch Lane Avenue Conversion Project
/
i
.,
:',!":~
!.,
r~,:I'I~:\'
iI:
11!j
,
l!
L 1 ..
COMMITTEE ACTION:
The Engineering,Operations,and Water Resources Committee
reviewed this item at a meeting held on November 3,2008 and the
following comments were made:.
•The board awarded ARB the construction contract for the 20-
Inch Lane Avenue Conversion project on January 14,2008.
Staff is requesting that the board approve Change Order No.
1 to the existing contract with ARB in an amount not to
exceed $78,938.
•The construction of the project began in February 2008 and
the project is approximately 90%complete.
•Additional cost was incurred to videotape the pipeline to
identify and confirm any undocumented connections at the
request of the committee.Four undocumented connections
were found.These connections have been previously
abandoned and their discovery allows the District to
document them to prevent erroneous future connections.
•There were other issues related to the type of flow meter
to be used on the project,because of confusion on this
issue it was agreed to share the restocking fee,the
installation of spools at valve locations,the ability of
butterfly valves to open without conflicting with the pipe
lining,unknown conditions and additional structural fence
elements that were required.Staff reviewed the breakdown
of the costs,which is noted on page 3 of staffs'report,
for each issue.
•RBF Consulting was hired to review and analyze ARB's
construction claim and agreed that $78,938 was reasonable
reimbursement for the identified issues.
•It was indicated that the project would still be under
budget even with the inclusion if this change order.
Following the discussion,the committee supported staffs'
recommendation and presentation to the board on the consent
calendar.
6
SUBJECT/PROJECT:
R2081-001103
ATTACHMENT B
Change Order No.1 to the Contract with ARB,Inc.for the
20-Inch Lane Avenue Conversion Project
OlayWater District
R2081·RecPL -20-lnch 944 Zone LaneAvenue-
Date Updated:October 07,2008
Outstanding ProjectadFlnsl Vsndor/Budgst Committad Expendlturss Commitmsnt&Cost Commsnfs$1,090,000 ForBeSst
Planning
Labor 30,828 30,828 30,828
Professional &Legal Fees 124 124 -124 GARCIACALDERON RUIZ LLP
Consultant Contracts 2,530 2,530 -2,530 RBF CONSULTING
Outside Servicas --
----
Service Contracts --
OtherAgency Faes -.
--
Total Planning $33,482 $33,482 $-$33,482
Design
In House/Labor 113,288 113,288 113,288
In House/Labor(future)-
Consultant Contracts 41,127 41,127 -41,127 RBF CONSULTING
5,000 5,000 -5,000 INFRASTRUCTURE ENGINEERING
Mileage 15 15 -15 PETTY CASH CUSTODIAN
Materials 393 393 -393 CWMACGRATH
ContractedServices 12,719 12,719 -12,719 KIRKPAVING INC
Permits 300 300 .300 CITYOF CHULA VISTA
ServiceContracts ----
--
Advertisin9/Bid --
SettlemenVEasement --
Total Design $172,842 $172,842 $-$172,842
Construction
In House/Labor 112,204 112,204 112,204
OtherAgency Fee 50 50 -50 PETTYCASH CUSTODIAN
Construction Contracts 594,230 460,899 133,332 594,230 ARB INC.
Ratention 66,026 60,365 5,661 66,026 ARB INC.
78,938 78,938 ARB INC.CO #1
Contracted Services 1,910 1,910 -1,910 RICKPOSTWELDING
236 236 -236 CLARKSON LAB &SUPPLYINC
ServiceContracts 2,443 2,443 -2,443 OCB REPROGRAPHICS
69 69 -69 SAN DIEGO DAILYTRANSCRIPTS
258 258 -258 SPANKY'S PORTABLE SERVICESINC
AdvertisemenVBid 332 332 -332 UNION TRIBUNE PUBLISHING CO
Meter Boxes 76 76 .76
Water Loss --
AccpVclose-out -.
Total Construction $856,773 $638,842 $138,993 $856,773
Grand Total $1,063,097 $845,165 $138,993 $1,063,097
e AREAS OF WORK
---EX.RECYCLED WATER MAIN
---EX POTABLE WATER MAIN
---PROPERTY LINE
OTAYWATER DISTRICT
REC-PL 20-INCH,944 ZONE,
LANE AVE -PROCTOR VALLEY/POND NO.1
CIP R2081
EXHIBIT A
EXHIBlTB
OTAYWATER DISTRICT
2554 SWEETWATER SPRINGS BLVD.,SPRING VALLEY,CA.91978,(619)670-2222
CONTRACT/P.0.CHANGE ORDER No.0 1
PROJECTIITEM:20-inch Lane Avenue Conversion Project
CONTRACTORNENDOR:ARB,Inc.REF.CIP No.:R2081
APPROVED BY:Board REF.P.O.No:708029 DATE:28-0ct-08
DESCRIPTION:
Reimbursement to the Contractor for various items:1.CCTV of the pipe.2.Meter restocking.3.
Spools.4.Valve /pipe transitions.5.Utility conflicts.6.Structure for fencing.
See attached MOU dated 24 October 2008.
REASON:
1.CCTV was a Director request to assure existing undocumented connections were seen.2.
Miscommunication resulted in the wrong meter being ordered.3.Plan discrepancy resolution.4.The
Contractor needed to perform special work for valve clearance.5.Unforeseen conflicts with gas and
electric.6.The plans did not show sufficient structural supports.
CHANGE P.O.TO READ:
Revise contract to add $78,938 for a total contract amount of $739,194.
Add 60 days to the completion date from 30 January 2009 to 1 April 2009.
ORIGINAL CONTRACT/P.O.AMOUNT:
ADJUSTED AMOUNT FROM PREVIOUS CHANGE:
TOTAL COST OF THIS CHANGE ORDER:
NEW CONTRACT/P.O.AMOUNT IS:
ORIGINAL CONTRACT COMPLETION DATE:
CONTRACT/P.O.TIME AFFECTED BY THIS CHANGE:
REVISED CONTRACT COMPLETION DATE:
$
$
$
$
660,256.00
0.00
78,938.00
739,194.00
1/30/2009
Yes
4/1/2009
IT IS UNDERSTOOD WITH THE FOLLOWING APPROVALS,THAT THE CONTRACTORIVENDOR IS AUTHORIZED AND DIRECTED TO MAKE
THE HEREIN DESCRIBED CHANGES.IT IS ALSO AGREED THAT THE TOTAL COST FOR THIS CHANGE ORDER CONSTITUTES FULL AND
COMPLETE COMPENSATION FOR OBLIGATIONS REQUIRED BY THE CONTRACT/P.O.ALL OTHER PROVISIONS AND REQUIREMENTS OF
THE CONTRACT/P.O.REMAIN IN FULL FORCE AND EFFECT.
CONTRACTORNENDOR:
SIGNATURE:_
STAFF APPROVALS:
PROJ.MGR:Sr Eng (Inll.-DATE:_
NAME:_
TITLE:DATE :_
DIV.MGR:_
CHIEF:_
DATE:_
DATE:_
ADDRESS:ASST.GM:_----------------
_______________DISTRICT APPROVAL:
GEN.MANAGER:_
DATE:_
DATE:_
COPIES:0 FILE (Orig.),0 CONTRACTORNENDOR,0 CHIEF-ENGINEERING,0 CHIEF-FINANCE,0 ENGR.MGR.
o ACCTS PAYABLE,0 INSPECTION,0 PROJ.MGR.,0 ENGR.SECRETARY,0 PURCHASING,0 PROJECT BINDER
P:IWORKINGICIP R20811ConstructionlChange OrderslCO 01 Draft 102808.doc
CHANGE ORDER LOG
20"Pipeline Conversion R2081-001103
APPROVED
C.O.AMOUNT BY DATE DESCRIPTION TYPE C.O.
Reimbursement to the Contractor for various items:1.
1 $78,938.00 Board 11/13/2008 CCTV of the pipe.2.Meter restocking.3.Spools.4.Owner &Contractor ItemsValve/pipe transitions.5.Utility conflicts.6.Structure
for fencing.
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
Total C.O.'s To Date:
Original Contract Amount:
Current Contract Amount:
Change Order Breakdown for the Month:
Month Net C.O.$Limit Authorization
10/08 $0.00 $5,000/5%PM/Supervisor
$10,000/10%Manager
$15,000/20%Chief
$50,000/30%GM
P:\WORKING\CIP R2081\Construction\Change Orders\COLOG
$78,938.00
$660,256.00
$739,194.00
Absolute C.O.$
$0.00
$0.00
$0.00
$0.00
12.0%
Absolute C.O.%
0.0%
0.0%
0.0%
0.0%
10/28/2008
AGENDA ITEM 6c
STAFF REPORT
MEETING DATE:November 13,2008TYPEMEETING:Regular Board
H.Damon Braden ~
SUBMITTED BY:Senior Civil Engineer
Ron Ripperger ~
Engineering Manager
PROJECT/
SUBPROJECTS:
R2053-
002103/
003103
DIV.
NO.
4
APPROVED BY:
(Chief)
APPROVED BY:
(Ass!.8M):
SUBJECT:
Rod Posada ~~~
Chief,Engineering
Manny Magan~~
Assistant General \fnager,Engineering and Operations
Increase the Project Budget for the Ralph W.Chapman
Wastewater Recycling Facility (RWCWRF)-Reverse Osmosis
Building and Meter Shop Remodel Project
GENERAL MANAGER'S RECOMMENDATION:
That the Otay Water District's (District)Board revise the
FY 2009 budget for the Ralph W.Chapman Wastewater Recycling
Facility (RWCWRF)-Reverse Osmosis (R.O.)Building and Meter
Shop Remodel Project from $495,000 to $575,000 (see Exhibit A
for project location)
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To obtain Board authorization to increase the project budget by
an amount not to exceed $80,000 to cover additional expenses due
to unforeseen conditions encountered by the Contractor and
additional Operations and Engineering staff support.
ANALYSIS:
The Board awarded a contract to Telliard Construction on May 7,
2008 in the amount of $275,800.At that time,total
expenditures,plus outstanding commitments and forecast,were
$487,854.The FY 2009 budget is $495,000.Completing the
project within budget was only possible if no changes were made
and no unforeseen conditions were found.However,this is a
complicated project,consisting of the remodel of a portion of
the warehouse building from a meter shop into office space and,
separately,the placement of a modular building at the RWCWRF.
The RWCWRF has more than thirty years of history and has had
numerous process changes resulting in a myriad of underground
facility changes.Because of the history of the existing
building and site,unforeseen conditions existed at the Meter
Shop that were uncovered during the remodeling and at the RWCWRF
that were revealed as the preparation was commencing for the
installation of the new modular office building.Telliard's
projected additional costs are as follows:
No.Item Amount
1.Install a split-system HVAC unit which prevents
hot alr from entering the meter shop.(C.O.#1)$5,400.00
2.Revise the modular office layout.(C.O.#2)$3,850.00
3.Change water heater at Water Operator's offices $1,366.69totankless.(C.O.#2)
4 Plumbing in doorway -unforeseen condition.$1,438.31
5 Added curb under wall.$1,058.15
6 Sewer location -Contractor encountered
unforeseen utilities.$1,227.75
7 Electrical outlet relocations -Contractor
performed.$3,019.00
8 Asphalt patch.$1,600.00
9 Wetwell coating.$5,592.81
10 Credit re:Sewer ($3,090.12)
Total:$21,462.59
In addition to the above projected tasks from the Contractor,
District staff has additional various efforts listed below that
will be required before completion of the project can be
obtained:
1.The addition of a sewer ejector system for the modular
building at the RWCWRF instead of a simple gravity line.
2.Operations Staff assistance with installation of the sewer
system at the RWCWRF.
3.Operations Staff installation of the electrical service at
the RWCWRF.
4.Operations staff support of the Contractor in identifying
and uncovering miscellaneous utilities at the RWCWRF.
5.Engineering staff support from the Architect and
Engineering consultants for code interpretations.
6.A separate voice/data contractor for the modular building.
2
The sum of Telliard's additional projected costs r staff Bupport r
and the voice/data contractor results in the need to increase
the budget by $80,000 to complete the project.
FISCAL IMPACT'~
The total budget for CIP R2053,as approved in the FY 2009
budget,is $495,000.Expenditures to date are $402,514.Total
expenditures,plus outstanding commitments and forecast to date,
are $575,000,which includes anticipated additional expenditures
by the Contractor and related staff expenditures.(See
Attachment B for budget details).The Project Manager has
determined that with a budget increase of $80,000,the project
could be completed with the new budget amount of $575,000.
Finance has determined that 100%of the funding is available
from the Betterment Fund.However,the reserve fund may be
brought below the target level until either the 2010 budget is
approved with transfers to make the fund whole,or until the
2010 debt issuance would replenish the fund.
STRATEGIC GOAL:
This project supports the District's Mission Statement,"To
provide safe reliable water,recycled water,and wastewater
services to our community in an innovative,cost efficient
water-wise,and environmentally responsible manner,"as well as
the General Manager I s vision,"...prepared for the future..."by
guaranteeing that the District will always be able to meet
future water supply obligations and plan,design,and construct
new facilities.
LEGAL IMPACT:
None.
~f1UMI/1n
General Manager iJ'b
P:\WORKING\R2053\Staff Report\BD 11-13-08,Staff Report,Increase to FY 2009
RWCWRF Project Budget,(HDB-RR).doc
HDB/RR/RP:jf
Attachments:Attachment A
Attachment B
Exhibit A
3
iSUBJECT/PROJECT:
I R2053-
002103/
003103:.........
ATTACHMENT A
i Increase the Project Budget for the Ralph W.Chapman
I Wastewater Recycling Facility (RWCWRF)-R.O.Building and
!Meter Shop Remodel Project
'I,
COMMITTEE ACTION:
The Engineering,Operations,and Water Resources Committee reviewed this
item at a meeting held on November 3,2008 and the following comments
were made:.
•Staff is requesting that the board increase the project budget for
the Ralph W.Chapman Wastewater Recycling Facility and Meter Shop
Remodel Project in an amount not-to-exceed $80,000.
•The project would provide permanent office space at the treatment
plant and office space within the meter shop.
•The project required permits from the County because individuals
would be working in the office spaces.The permit has been
received but took much longer involving much more Staff time than
was anticipated.
•When the project was awarded to Telliard Construction on May 7,
2008,the total amount remaining in the project budget was about
$7,000.The project could only be completed within budget if no
changes were made and no unforeseen conditions were found.
•Due to the history of the existing site,unforeseen conditions were
uncovered during the installation of the modular office building.
- A sewer line was discovered that is in direct conflict with
the sewer line for the modular office.A small pump must be
installed to go over the existing line.
Data cabling must be installed.
Other items were identified as listed on page 2 of staffs'
report .
•The project will require an additional $80,000 to complete.It was
indicated that the monies have not been spent,however they have
been committed.
•The District received a free upgrade on the modular office as they
were currently producing the upgraded modular office,and the
manufacturer did not wish to interrupt the production line to
produce the modular office ordered by the District.
Following the discussion,the committee supported staffs'recommendation
and presentation to the board on the consent calendar.
SUBJECT I PROJECT
R2053 -002103,003103
ATTACHMENT B
OtayWater District
R2053-RWCWRF - R 0 Building Remodel
Increase the Project Budget for the Ralph W.Chapman
Water Reclamation Facility (RWCWRF)
-R.O.Building and Mete-r Shop Remodel Project
Dale Updated:Oclober 24,2008
Budget
$495,000
Committed Expendit ures
Outstanding
Commitmen/&
Forecast
ProjectedFinalCost Vendor /
Comments
Planning +-+----j~_
--~~;:~~i~~~:::sOH,~ringe&Equipment.200 2.~:~~~20,~~~WILLIAMS SCOTSMAN INC .----.--
.._--_.._-
Office Supplies 6 6 6 PETTY CASH CUSTODIAN
Regulatory Agencx.c:.pc:.ec:.e.::.s ..+-____5,-0+-50 ------50 SAN DIEGO COUNT'-'_::.Y:::._=__=__=__=__=__=__=_-_--~~~~_._
Temporary Lab,?,!15 15 15 TEMPRO INC.,/SEDONA__=__=__=__=__=__=__=__=_==_-_-_-_-_-_-_-_-..:ri_-_~-.=_=__=__=__=__=__=__-=5:-:'}+.---------=5-=9t------.-----:+-=_____59 PRIMARY FUNDING CORP.
--_._--+-------J---..-----.---t---------
Total Planning $330I $21,025 $0 $21,0251
Design ......---------f__------j___.._
In Hous~/Labor (includes OH,Fringe &Equipm~I1I_.9.._5.::.,_=7-34-f__-.----...-.9_5.::.,_7_34_f__-=-:cc:c __~---===::-.... .__
Consultant Contracts 1,000 ""::'"'-,o'-'o'-'o'---+..=-f--------._c:.",,'c:.0.::.O'-O--!-'-HA=R'-'PE::;Rc.:..:&=A.::.S.::.SO'_C,-,I::cA::cTc=Ec=S__f----~_.--_._-.,375---375 375 WILLIAMS SCOTSMAN INCf--f--.-.--.----..---=--t-.------·-+----------+-=-=-c-:----==::-cc-
l----~~"::E_Agency Fee __..__.__.~.~45 45 PETTY CASH CUSTODIAl'!.....__
Professional Legal Fees __~~___265 BURKE,WILLIAMS &.~R_E_NS_E_N_~f~?_
1,795 "_,7_9_5___1,795 GARCIA CALDERON &~UIZ LLP ...__
Regulatory Agency Fee__s -+.~2_8_7_.287 COUNTY OF SAN DIE_G,-O,---.~_
Service Contracts ~_.__395 395 COUNTY OF SAN DIEGO _+. +23_4_+__2_3:__4-+\-__..234 AWBREY COOK MCGILL ARCHI~!?_T_S _
3,493 3,_4.9_3-+---j ---=3::..,493 BOYLE ENGINEERING CORPORAT_I_O_N ...
670 670 670 COUNTY OF SAN DIEGO--------1------=·---·-'---'---+---~-----I
_____-------f__---::-:75 75 75 HELIX ENVIRONMENTAL PLANNING,.__
______________+2'-,'-'00'-'0'---l .....:2",c:.0c.:.0'-'0+------.---__.__.::.2,-,0,-O:.cO-+MA=Y,-E_R_=R.::.E,-,PR.::.O:.cG::cRAc;'.P_H_ICS.X,,_C=====.-....._----=----------~
14,975 14,975 14,975 MCGRAW/BALDWIN ARCHITECTS==-__·~========.~~~===t===.~·---i05;---··105 105.I,S=-·A=-N....::.D.::.I:::.EG,-,O---=Dc.:."c=I.L!TRA-N-S-CR-I-P-T~_··_-·=====_==
531 531 ~531 UNION TRIBUNE PUBLISHING CO
-------------------+-------4-=,-=1-=2-=5-4,.1.::.25'---j ~+-~..-----_4~,~"_2_5+W-I-L-L-IAM_.S-'_S_C_O_TS_MA_N_I_N_C_._.--~===-_--_-===~~~_I
Construction Contracts
Total Design
Construction
30,369
10,000
275,800---_____________+__c:.1c=0'617
126,104
125,110
18,898
126,104
----_...._-----
Total Construction
Grand Total
332,244 I $
362,943 I $
255,386
402,514
186,307
186,307
422,795
569,924
10/30/2008 P:IWORKINGICIP R20531Staff ReportslR2053staffreport Ex B102808
"..,.,.....,...
VICINITY MAP
---PRO f)RECLAMA N
T OFFICE BUILDING
/
/
.~~f..lF«POSED RECYCLED
WATER OPERATORS
OFFICES
S ELEVAh"OR ROAD
I
~aTAY WA TER DISTRICT
i RALPH w.CHAPMAN WASTEWATER RECYCLING FACILITYiR.O.BUILDING &METER SHOP REMODEL PROJECT
,LOCATION MAP CIP R2053~'-----"""':'_--------------------~EXHIBIT A
AGENDA ITEM6d
STAFF REPORT
DIV.NO.50210-
20.306
&Operations
MEETING DATE:November 13,2008
Manny Magana,
David Charles,FILE NO:
Public Services~--Manager
Rod Posada,Chief,Engineering~~
Regular Board
APPROVED BY:
(Asst.GM):
APPROVED BY:
(Chief)
TYPE MEETING:
SUBMITTED BY:
SUBJECT:Robinson Sewer Annexation to ID 18
GENERAL MANAGER'S RECOMMENDATION:
Adopt Resolution No.4131,the annexation of the property owned
by Rena Robinson to Improvement District No.18.
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
The purpose of the proposed annexation is to provide sewer
service to a parcel located at 1574 Shadow Knolls Drive,EI
Cajon,California.(APN 498-340-34-00).
ANALYSIS:
A written request and Petition signed by Rena Robinson,has been
received for annexation of APN 498-340-34-00 into Improvement
District No.18 for sewer service.The total acreage to be
annexed is 0.63 acres.The property is within the sphere of
Otay Water District and will be part of Improvement District 18
after the Board of Directors approves this request.The
property is located at 1574 Shadow Knolls Drive,in the City of
EI Cajon and County of San Diego.
FISCAL IMPACT:
The property owners will be charged $10 per year for
availability fees.
STRATEGIC GOAL:
Provide sewer service to meet increasing customer needs.
LEGAL IMPACT:
General Manager
ATTACHMENT A
I SUBJECT/PROJE
I CT:Robinson Sewer Annexation to ID 18
COMMITTEE ACTION:
The Engineering,Operations,and Water Resources Committee
reviewed this item at a meeting held on November 3,2008 and the
following comments were made:.
•Staff is requesting that the board approve the annexation
of the property identified by APN No.498-340-34-00 into
Otay's Improvement District 18 for sewer service.
•The property is owned by Rena Robinson and the total
acreage to be annexed is 0.63 acres.Ms.Robinson will pay
all necessary fees to hook to the District's sewer system
following approval of her request.
•It was discussed that many of the septic systems in the
area where Ms.Robinson resides is failing due to age.The
cost to repair septic systems is approximately $20,000.
The cost to annex into the District's sewer system is
approximately $15,000 and the owner no longer incurs the
monthly cost for the maintenance of their septic system.
•As it is more cost effective to annex to the District's
sewer system,many owners are opting for annexation.
Following the discussion,the committee supported staffs'
recommendation and presentation to the board on the consent
calendar.
G:\UserData\DistSec\WINWORD\ANNEX\Robinson Sewer Annexation\BD Mtg 11-13-08,Staff Rpt,Robinson
Sewer Annex.doc
RESOLUTION NO.4131
A RESOLUTION OF THE BOARD OF DIRECTORS OF
OTAY WATER DISTRICT APPROVING THE ANNEXATION
TO OTAY WATER DISTRICT IMPROVEMENT DISTRICT
NO.18 OF THOSE LANDS DESCRIBED AS "ROBINSON
SEWER ANNEXATION"(FILE NO.0210-20.306/DIV.
5)
WHEREAS,a letter has been submitted by Rena Robinson,the
owner and party that has an interest in the land described in
Exhibit "A,"attached hereto,for annexation of said land to Otay
Water District Improvement District No.18 pursuant to California
Water Code Section 72670 et seq.;and
WHEREAS,pursuant to Section 72680.1 of said Water Code,the
Board of Directors may proceed and act thereon without notice and
hearing.
NOW,THEREFORE,THE BOARD OF DIRECTORS OF THE OTAY WATER
DISTRICT FINDS,RESOLVES,ORDERS AND DETERMINES as follows:
1.A depiction of the area proposed to be annexed,and the
boundaries of ID 18 following the annexation,is set forth on a
map filed with the Secretary of the District,which map shall
govern for all details as to the area proposed to be annexed.
2.The purpose of the proposed annexation is to make sewer
service available to the area to be annexed,which availability
constitutes a benefit to said area.
3.The Board finds and determines that the area proposed
to be annexed to ID 18 will be benefited by such annexation and
that the property currently within ID 18 will also be benefited
and not injured by such annexation because after the annexation a
larger tax base will be available to finance the sewer facilities
and improvements of ID 18.
Page 1of3
4.The Board of Directors hereby declares that the annexa-
tion of said property is subject to the owners complying with the
following terms and conditions:
(a)The petitioners for said annexation shall pay to
Otay Water District the following:
(1)Standard processing fee in the amount of
$707.00;
(2)State Board of Equalization filing fees in
the amount of $300;
(3)A sewer annexation fee of $5,236 per EDU to
be collected at the time of connection to the
Otay Water District sewer system;
(4)Yearly assessment fees will be collected
through the County Tax Assessor's office in
the amount of $10 for APN 498-340-34-00;
(5)In the event that water service is to be
provided,Petitioners shall pay the then
applicable annexation fees per EDU at the
time the meter is purchased;and
(6)Payment by the owners of APN 498-340-34-00 of
all other applicable local or state agency
fees or charges.
(b)The property to be annexed shall be subj ect to
taxation after annexation thereof for the purposes
of the improvement district,including the payment
of principal and interest on bonds and other
obligations of the improvement district,author-
ized and outstanding at the time of annexation,
Page 2 of3
the same as if the annexed property had always
been a part of the improvement district.
5.The Board hereby declares the property described in
Exhibit "A"shall be considered annexed to ID 18 upon passage of
this resolution.
6.The Board of Directors further finds and determines
that there are no exchanges of property tax revenues to be made
pursuant to California Revenue and Taxation Code Section 95 et
seq.,as a result of such annexation.
7.The annexation of APN 498-340-34-00 to the District is
hereby designated as the "ROBINSON SEWER ANNEXATION."
8.Pursuant to Section 572029 (c)of the Government Code,
the effective date of the ROBINSON SEWER ANNEXATION shall be the
date this Resolution is adopted by the Board of Directors of the
Otay Water District.
9.The General Manager of the District and the Secretary
of the District,or their respective designees,are hereby
ordered to take all actions required to complete this annexation.
PASSED,APPROVED AND ADOPTED by the Board of Directors of
the Otay Water District at a regular meeting held this 13th day
of November,2008.
President
ATTEST:
District Secretary
G:\UserData\DistSec\WINWORD\ANNEX\Robinson Sewer Annexation\Resolution No.4131 -Robinson Sewer
Annex.doc
Page 3 of3
EXHIBIT "A"
LEGAL DESCRIPTION
APN:498-340-34
ANNEXATION PARCEL
Otay Water District
ALL OF LOT 17 OF SHADOW KNOLLS IN THE COUNTY OF SAN DIEGO,STATE
OF CALIFORNIA, ACCORDING TO MAP THEREOF NO.6033,FILED IN THE
OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, JANUARY 24,
1968,AND MORE PARTICULARLY DESCRIBED AS FOLLOWS:
BEGINNING AT THE SOUTHWEST CORNER OF SAID LOT 17;THENCE ALONG
THE WESTERLY LINE THEREOF,NORTH 16°25'18"EAST,190.01 FEET TO THE
NORTHWEST CORNER THEREOF,SAID POINT BEING IN THE ARC OF A 175.00
FOOT RADIUS CURVE CONCAVE NORTHERLY,A RADIAL TO SAID POINT
BEING SOUTH 16°25'18"WEST;THENCE EASTERLY ALONG SAID CURVE,
BEING ALSO THE NORTH LINE OF SAID LOT 17,THROUGH A CENTRAL
ANGLE OF 11 °06'04",AN ARC DISTANCE OF 33.91 FEET TO THE BEGINNING
OF A REVERSE 100.00 FOOT RADIUS CURVE,CONCAVE SOUTHERLY;
THENCE CONTINUING EASTERLY ALONG THE REVERSE CURVE,THROUGH
A CENTRAL ANGLE OF 22°49'10",AN ARC DISTANCE OF 39.83 FEET TO THE
BEGINNING OF A REVERSE 48.00 FOOT RADIUS CURVE,CONCAVE
NORTHERLY;THENCE CONTINUING EASTERLY ALONG THE REVERSE
CURVE,THROUGH A CENTRAL ANGLE OF 46°12'36",AN ARC DISTANCE OF
38.71 FEET TO THE NORTHEAST CORNER OF SAID LOT 17;THENCE ALONG
THE EASTERLY LINE THEREOF,SOUTH 18°04'12"EAST,169.64 FEET TO THE
SOUTHEAST CORNER THEREOF;THENCE ALONG THE SOUTHERLY LINE OF
SAID LOT 17,NORTH 89°58'31"WEST,A DISTANCE OF 215.00 FEET TO SAID
POINT OF BEGINNING.
~:~8
DATED:October 14,2008
JOB NO.:R-229
EXHIBIT"A"
LEGEND
~INDICATES AN\JEXATIONAREA
A.P.N.498-340-34
ANX-08-005
""-SHADOW
~KNOLLS
.......~DRIVE---------4=,22'49'Roo/OO 10~
IV/7'?".:L;;;;:";):2E9.;B~.
N
j
-6D-
L0115 I
"'-SCALE'I'•50'
,-----
L0118
L0131
DATE
10/16/08
N
I-6D-
I
SITE
VICINITY MAP
NO SCALE
THOS.BROS.
PG.1272-A2
CHASE AVE}lllAP 11392
Snipes-Dye a ••oelate.
dill'eng'nee,.and'and.unteya,.
8348 CENTER DRIVE,STE.G,LA MESA,CA 91942
TELEPHONE (619)697-9234 FAX (619)460-2033
G1:~068
OTAY WATER DISTRICT
LOT 17 OF SHADOW KNOLLS PER MAP NO.6033
N THE COUNTY OF SAN DIEGO,STATE OF CALIFORNIA
COORDINATES
R-229ANNEX-I'LAT-1.DWG
REV.DATE
1-_+-_-+--1 RECORDERS F/p -_
J.IZl~~~----__1t--+---+------------1 RECORDING DATE --------!'iillII-..:...s.....;.,jI------t
t--+---+------------1 OTAY W.D.DEED NO.--------~mi~~~~===::1t--+---+------------1 IMP.DIST.NO._J-Wor..m.lia:...------__1
Robinson Residence
SHA
P:IPublic-slshapefilesIWOprojlworkorder.apr
P:IPublic-slshapefilesIWOproJ1workorder.epr
Parcel 498-340-34-00
Request to Annex
.63 acre into
Sewer 1018
L..-~__-1 Sewer ID:18APN:498-340-34-00
Division 5
18
DIR.DIV.:
Address:
1574 Shadow Knolls Dr
EI Cajon,CA 92020
APN:498-340-34-00
File No:0210-20.306
Sewer 1.0.:
AGENDA ITEM 6e
German AWay;ez,
Assis~neral Manager,Finance and Administration
W.O.lG.F.NO:
MEETING DATE:TYPE MEETING:
SUBMITTED BY:
APPROVED BY:
(Chief)
APPROVED BY:
(Ass!.GM):
STAFF REPORT
Regular Board
Stephen Dobrawa,purcha~
and Facilities Manage~~
Rom Sarno,Chief,Administrative Services
November 13,2008
DIV.NO.All
SUBJECT:RATIFICATION OF ADOPTION OF STATE OF CALIFORNIA MASTER
SERVICE AGREEMENT NO.5-06-99-01 CAL-CARD PROGRAM.
GENERAL MANAGER'S RECOMMENDATION:
That the Board:
1.Approve and Ratify the District's participation in the
State of California Master Service Agreement (MSA)5-06-99-
01 Purchase Card Program (Attachment B),
2.Ratify the General Manager's approval of Addendum 2 to MSA
5-06-99-01,adding the Otay Water District as a
Participating Agency,and
3.Authorize the General Manager to execute future agreements
and other required documentation including addendums to MSA
5-06-99-01 as required to continue the District's
participation in the State of California Purchase Card
Program.
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To obtain approval to utilize the State of California MSA 5-06-
99-01 CAL-Card Program (Contract attached),ratify the General
Manager's approval of the Addendum to the contract identifying
the District as a Participating Agency,and authorize the
General Manager to execute future documents including any
addendum to the existing contract as may be required to continue
the District's participation in the State's Purchase Card
Program.
ANALYSIS:
On April 2,2008,the Board adopted Resolution 515,amending
Policy 15,Use of District Credit Cards,Petty Cash,and
Expenditures involving District Credit,authorizing the General
Manager to issue credit cards to District employees in
accordance with the District's Purchasing Manual and applicable
laws.Concurrently,the Board amended the District Purchasing
Manual Section 13 -Credit Cards,establishing that where
feasible,the issuing of credit cards shall be through the State
of California's CAL-Card Program.
On October 13,2008,the District received notification from US
Bank,the current CAL-Card service provider,that the District
is required to submit an Addendum to the State of California
Purchase Card Program (CAL-Card Program)Master Services
Agreement (DGS MSA 5-06-99-01),adding Otay Water District as a
Participating Agency and that failure to provide the executed
addendum by November 1,2008 would result in the suspension of
issued credit cards.On October 17,2008 the General Manager
executed the required addendum.To be effective,the addendum
must be ratified by the Board.
It is expected that as the State adopts changes to the existing
CAL-Card Program MSA or executes new CAL-Card MSAs,the District
will be required to execute additional addendums and related
documentation.To accommodate this,it is recommended that the
Board authorize the General Manager to execute future agreements
and applicable addendums as necessary to allow the District to
continue use of the State of California Purchase Card (CAL-Card)
Program.
In addition to providing for expedient purchasing during
emergencies,continuing the use of the CAL-Card program will
allow the District to continue to take advantage of the
efficiencies and operating cost reductions provided by the
program through the:
•
•
•
Ability to make time sensitive field purchases,
Consolidation of payments for small value purchase,and
Reduction of petty cash disbursements.
Purchases made via the use of credit cards are required to
conform to the District's Purchasing requirements and standards
identified within the Code of Ordinance and Purchasing Manual.
FISCAL IMPACT:/~
None.
STRATEGIC GOAL:
The recommended actions support the District's goal of improving
the efficiency of business processes.
Attachment A -Committee Action
Attachment B -State of California Purchase Card MSA 5-06-99-01
and Addendum
ATTACHMENT A
SUBJECTIPROJECT:RATIFICATION OF ADOPTION OF STATE OF CALIFORNIA MASTER
SERVICE AGREEMENT NO.5-06-99-01 CAL-CARD PROGRAM.
COMMITTEE ACTION:
The Finance,Administration and Communications Committee
discussed this item at a meeting held on October 28,2008 and
the following comments were made:
•It was indicated that the District has been participating
in the State of California's Procurement Card Program (CAL-
Card)for a number of years.Prior to the CAL-Card program,
the District had authorized credit cards for several
members of the staff with Union Bank of California.
•CAL-Cards are issued to various employees including line
personnel.Each card has an identified per-transaction and
per-month expenditure limit (most have per-transaction
limits of $1000 or less and monthly limits of $5,000 or
less)and all cards have controls that define the types of
purchases that can be made.There are five cards with
$50,000 limits for emergency purchases.
•The cards provide operating efficiencies by saving time and
reducing operating costs.An examples is the ability for
field staff to make time sensitive field purchases at the
time of need rather than submitting a check requisition or
acquiring petty cash.Also,small value purchases are
consolidated and paid by one check,as opposed to one check
for every individual purchase.Purchases are approved once
monthly and a check is issued to one vendor.
•Purchases made with CAL-Cards are required to conform to
the District's Purchasing requirements and standards
identified within the District's Code of Ordinances and
Purchasing Manual.
•Staff indicated that the District has had good experience
with the CAL-Card program and wishes to continue in the
program.To continue in the program,the District was
required to submit an Addendum (Addendum No.2)to the
State of California Purchase Card Program adding the
District as a Participating Agency by November 1,2008 or
the District's issued CAL-Cards will be suspended.
•Because U.S.Bank,the current CAL-Card service provider,
provided the District short notice of the requirement to
submit the Addendum,the General Manager has signed
Addendum No.2 and staff is requesting that the board
ratify the MSA 5-06-99-01 and Addendum No.2.
Following the discussion,the committee supported staffs'
recommendation and presentation to the full board on the consent
calendar.
ATTACHMENT B~
$
$
Ii
i
!!
!
I
I'
I'i:
I,
I:~I
I
:1:
a condit1l:m
j
~I,
I~,i
IIt:~i
II
I
Ii
I
'I<I
I
'I
E,
=:Administrative
-
AGENDA ITEM 6f
STAFF REPORT
TYPE MEETING:Regular Board
SUBMITTED BY:Stephen Dobrawa,
MEETING DATE:
W.O./G.F.NO:
November 13,2008
DIV.NO.All
APPROVED BY:
(Chief)
purChaSingJJf~Facilities
Manager ~
Rom Sarno,Chief,Administrative Services
APPROVED BY:Ge rman Alvare z,
(Asst.8M):
Assistant General Manager,Finance and Administration
SUBJECT:AUTHORIZATION TO NEGOTIATE FOR THE PURCHASE OF .993 ACRES OF
VACANT LAND (APN NO:505-230-52-00)ADJOINING THE DISTRICT'S
PROPERTY AT 2553 SWEETWATER SPRINGS BLVD,SPRING VALLEY AND
AMEND THE FY-2009 CIP BUDGET BY $600,000.
GENERAL MANAGER'S RECOMMENDATION:
That the Board authorize the General Manager to:
i'i
1.Enter into
Industrial
identified
approval).
good
Center,
as APN:
faith negotiations with Rancho San Diego
LLC for the purchase of the vacant land
505-230-52-00 (purchase contingent on Board
IL
2.Amend the FY 2009 CIP Budget by adding $600,000 to fund CIP
P2479,Operations Yard Property Acquisition,to provide funding
for the purchase and improvement of the subject property.
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To request that the Board authorize the General Manager to enter into
good faith negotiations with Rancho San Diego Industrial Center,LLC
for the purchase of the vacant land identified as APN:505-230-52-00,
located adjacent to the District's operations facility at 2553
Sweetwater Springs Boulevard and amend the FY-2009 CIP budget by
$600,000 to provide funding for the purchase and improvement of the
property.
ANALYSIS:
The vacant
adjoining
Sweetwater
Attachment
0.993 acre property identified as APN:
the District's operations facility
Springs Boulevard is available for
B).
505-230-52-00 and
located at 2553
sale (reference
FISCAL IMPACT:
Acquiring the subject property will provide the District with
additional space required to:
1.Increase operational flexibility,
2.Accommodate for future expansion of facilities at current
locations,and
3.Centrally locate equipment and materials currently stored off
site.
Immediate use of the property will be to provide additional parking
and storage of vehicles,equipment,and materials,including critical
emergency equipment currently stored off-site.
On June 30,2008,the District commissioned Pacific Alliance
Appraisals to perform an appraisal of the subj ect property.It is
the opinion of the appraiser that given the fact that the property is
landlocked and given the length of time the property has been on the
market,the value of the property is between $380,000 and $456,000
and has stated the appraised value is $425,000.
Based on the appraisal,the District would like to enter into
negotiations with the current owner,Rancho San Diego Industrial
Center,LLC,for the purchase of the property,contingent on an
environmental evaluation of the property and Board approval of the
purchase.
~/~
This purchase is not currently in the CIP Budget.The proposed
budget for CIP P2479 is $600,000.If approved,it is estimated that
the amended CIP budget will be sufficient to support this project.
Finance has determined that 100%of the funding is available from the
Betterment Fund.However,the reserve would be brought below the
target level until either the 2010 budget is approved with transfers
to make the fund whole,or until the 2010 debt issuance would
replenish the fund.
STRATEGIC GOAL:
This proj ect supports the District's Mission Statement,"To provide
safe,reliable water,recycled water,and wastewater services to our
community in an innovative,cost efficient water wise and
environmentally responsible manner,"as well as the General Manager's
vision of,"...planning for the future..."by supporting the District in
its effort to meet future water supply obligations and plan,design,
and construct new facilities.
LEGAL IMPACT:
None.
Attachment A -Committee Action
Attachment B -Aerial Map APN:505-230-52-00
ATTACHMENT A
,,..;
AUTHORIZATION TO NEGOTIATE FOR THE PURCHASE OF .993 ACRES
SUBJECT/PROJECT:OF VACANT LAND (APN NO:505-230-52-00)ADJOINING THE
DISTRICT'S PROPERTY AT 2553 SWEETWATER SPRINGS BLVD,SPRING
VALLEY AND AMEND THE FY-2009 CIP BUDGET BY $600,000.
COMMITTEE ACTION:
The Finance,Administration and Communications Committee
discussed this item at a meeting held on October 28,2008
and the following comments were made:.
•Staff is requesting that the board authorize the
General Manager to enter into good faith negotiations
with Rancho San Diego Industrial Center,LLC (U.S.
Elevator)for the purchase of the vacant land adjacent
to the District's operations facility and identified
as APN No.505-230-52-00.
•Rancho San Diego Industrial Center,LLC purchased the
land several years ago and because it is landlocked
(surrounded by Otay WD,the Box Co.and U.S.Elevator,
and it has no road access),U.S.Elevator,has not
made use of the land.
•Rancho San Diego Industrial Center,LLC has offered
the land to the District.The property is adjacent to
the District's operations facility and has very few
restrictions with regard to what can and cannot be
done t%n the parcel.
•Acquiring the land will provide the District with
additional space for storage for equipment that is
currently stored off-site,provide for future
expansion of facilities at the District's current
location and would provide flexibility for future
planning for the District.
•Staff is suggesting that CIP P2479 be amended to
include an additional $600,000 for the acquisition of
the property.A portion of the additional funding
would be utilized to assure that the District would
not be prohibited from building on the property due to
environmental reasons and the remaining funding would
be used to grade and lay asphalt on the property.
•It was discussed that funding was available from the
Betterment Fund and in the next budget cycle,the
monies utilized from the Betterment Fund would be
addressed through recommended reserve transfers.
•Staff feels that the acquisition is a legitimate need
and if the land can be acquired for a good price it
would be a good purchase.
•The parcel was appraised by Pacific Alliance
Appraisals and it was valued at $425,000.The market
value of the parcel would have been $750,000,but
because of the access issue,it has been discounted.
There is a small amount of slope on the parcel,but
not much of the usable space of the .993 acres is lost
due to the slopes.
Following the discussion,the committee supported staffs'
recommendation and presentation to the full board on the
consent calendar.
Attachment B
Aerial Map APN:505-230-52-00
o 100 200 400
~i~~§iiiiiiiiiii~~~~~~i Feet
---Otay Operations Facility ---Subject Property ---
AGENDA ITEM 73
STAFF REPORT
2DIV.NO.:
November 13/2008
D0687-
090031
PROJECT NO.:
MEETING DATE:Regular Boar}f
Jim Peasley Q
Engineering J~ager
RO~Posada ~~~.i~16 S~
Chlef /Eng lneeru(1J r'
Manny Magana ~~~~~
Assistant General Maqage~Engineeringand Operations
Approval of Water Supply Assessment Report (October 2008)
for the Paragon Management Company Otay Business Park
Project
SUBJECT:
REVIEWED BY:
(Chief)
APPROVED BY:
(Asst.GM):
SUBMITTED BY:
TYPE MEETING:
GENERAL MANAGER'S RECOMMENDATION:
That the Otay Water District (District)Board approve the Water
Supply Assessment Report (WSA Report)dated October 2008 for the
Paragon Management Company Otay Business Park (Business Park)
development proposal/as required by Senate Bill 610 (SB 610).
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To obtain Board approval of the October 2008 WSA Report for the
Business Park project/as required by SB 610.
ANALYSIS:
SB 610 requires that a City or County considering a proposed
development that meets certain criteria/discussed below/to
request the public water purveyor (the Distict in this case)
that may serve the development to prepare a WSA Report to/among
other things/analyze whether water supplies are planned for and
are intended to be sufficient to supply the development for 20
years.SB 610 also requires that the approved WSA Report be
included in the California Environmental Quality Act (CEQA)
environmental documentation and approval process of such
proposed projects.
The District has received a request from the County of San Diego
(County)to prepare a SB 610 WSA Report for the Business Park.
The requirements of SB 610 are fully addressed by the WSA Report
for the Business Park project.Prior to transmittal to the
County,the WSA Report must be approved by the Board of
Directors.An additional explanation of the intent of SB 610 is
provided in Attachment B and the Business Park project WSA
Report is provided as Attachment C.
For the Business Park project,the County is the responsible
land use agency.The request for a WSA Report in compliance
with SB 610 requirements was made by the County because the
County has determined that the Business Park 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 floor 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 District is not being asked to provide a report in
compliance with the requirements of Senate Bill 221 (SB 221)
because the project is an industrial subdivision.SB 221
requires affirmative written verification from the water
purveyor of the public water system that sufficient water
supplies are planned to be available for certain residential
subdivisions of property prior to approval of a tentative map.
The Business Park project is currently located within the
jurisdictions of the District,the San Diego County Water
Authority (Water Authority)and the Metropolitan Water District
of Southern California (MWD).To obtain permanent imported
water supply service,land areas are required to be within the
jurisdictions of the District,Water Authority,and MWD to
utilize imported water supply.
The WSA Report identified that the water demand projects for the
proposed Business Park project are included in the water demand
and supply forecasts within the Urban Water Management Plans and
other water resources planning documents of the District,the
Water Authority,and MWD.Water supplies necessary to serve the
demands of the proposed Business Park project,along with
existing and other projected future users,as well as the
actions necessary to develop these supplies,have been
identified in the water supply planning documents of the
District,the Water Authority,and MWD.
2
I:.~
!:
The WSA Report 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 proposed Business Park project and the existing
and other planned development projects within the District.As
allowed under SB 610/the WSA Report for the Business Park
project incorporates by reference the current Urban Water
Management Plans and other water resources planning documents of
the District/the Water Authority/and MWD.
MWD's Integrated Resources Plan (IRP)identifies a mix of
resources (imported and local)that/when implemented/will
provide 100 percent reliability for full-service demands through
the attainment of regional targets set for conservation/local
supplies/State Water Project supplies/Colorado River supplies/
groundwater banking/and water transfers.MWD's 2004 update to
the IRP (2004 IRP Update)includes a planning buffer supply to
mitigate against the risks associated with implementation of
local and imported supply programs.The planning buffer
identifies an additional increment of water that could
potentially be developed if other supplies are not implemented
as planned.As part of implementation of the planning buffer/
MWD periodically evaluates supply development to ensure that the
region is not under-or over-developing supplies.Managed
properly/the planning buffer/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
that the Water Authority "as far as practicable/shall provide
each of its member agencies with adequate supplies of water to
meet their expanding and increasing needs."
The intent of the SB 610 legislation is that the land use
agencies and the water agencies are coordinating their efforts
in planning for new development and thus planning 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
WSA Report and deliver it to the lead agency (County)within 120
days (i.e./90 days,plus the 30-day County granted time
extension).In the case of the Business Park project,the
deadline for the District to provide the WSA Report to the
County is November 20,2008.
3
As per the requirements of 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 WSA Report and deliver it to the lead agency within the 120
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 WSA Report is not
received by the lead agency from the water supplier within the
prescribed90-day period,and any requested time extension (the
County granted the District a 30-day extension),the lead agency
may seek legal relief,such as a writ of mandamus.
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 essentially always will be present.The regional
water supply agencies,the Water Authority and MWD,along with
the District,nevertheless fully intend to have sufficient,
reliable supplies to serve the Business Park project.
An October 22,2007 letter from MWD to their member agencies,
including the Water Authority,provided notice of a 30 percent
reduction in Interim Agricultural Water Program (IAWP)
deliveries effective January 1,2008.A 30 percent water use
reduction of the sixteen IAWP District water accounts represents
26.0 acre feet (ac ft)based on fiscal year (FY)2007 or 0.09
percent of the total District's 28,353 ac ft annual purchase
from the Water Authority in FY 2007.
The District Board approved a drought response conservation
program that includes drought response levels and water use
restrictions.The Water Authority is responsible for notifying
its member agencies of the drought response level.Currently,
the District,along with the other member agencies,are in Level
1 -Drought Watch,meaning that there is a voluntary
conservation target of up to 10 percent.With Level 2 -Drought
Alert there is a mandatory conservation target of up to 20
percent.At Level 3 -Drought Critical there is a mandatory
conservation target of up to 40 percent and no new potable water
4
meters shall be provided except under limited conditions,such
as water demand for a project will be offset with new supply
and/or with demand management to the satisfaction of the
District.
Under the Water Authority water supply allocation plan in
response to their Drought Management Plan,the Business Park
project will not impact the District's water supply allocation.
The water supply allocation plan allows for new demand resulting
from growth when the land uses are included in the water demand
and supply forecasts within the water resources planning
documents of the District,the Water Authority,and MWD.
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 3,000 ac ft per year.The Business Park
project demand for potable water is estimated to be 162 ac ft
per year and the recycled water demand is estimated to be 20 ac
ft per year.The total Business Park project demand is about 6
percent of the 3,000 ac ft of potable water saved with the SBWRP
supply start up.To provide some perspective,the Business Park
project estimate potable water demand is equivalent to about 289
typical single family homes.
Staff recommends that the Board of Directors approve the October
2008 WSA Report for the Business Park project,as required by
and consistent with SB 610.
FISCAL IMPACT:~
/'
The District has been reimbursed $2,524 for all costs associated
with the preparation of the Business Park project WSA Report.
The reimbursement was accomplished via a $3,000 deposit the
project proponents placed with the District.
STRATEGIC GOAL:
The preparation and approval of the Business Park project WSA
Report supports the District Mission Statement,"To provide the
best quality of water and wastewater service to the customers of
the Otay Water District,in a professional,effective,
efficient,and sensitive manner,in all aspects of operation,so
that public health,environment,and quality of life are
enhanced"and the District's Strategic Goal,in planning for
infrastructure and supply to meet current and future potable
water demands.
5
LEGAL IMPACT:
Adoption of a water supply assessment in form and content
satisfactory to the Board of Directors on or prior to November
20,2008 would allow the District to comply with the
requirements of SB 610.
P:\ENGRSEC\Jim Peasley\BD 11-13-08,Staff Report,SB 610 Otay Business Park Approval,(JP-RR).doc
JP/RP:j f
Attachments:Attachment A
Attachment B
Attachment C
6
D0687-090031
ATTACHMENT A
SUBJECTlPROJECT:rApp~o:;aiof Water Supply Assessment Report (October 2008)
for the Paragon Management Company Otay Business Park
Project
COMMITTEE ACTION:
The Engineering,Operations,and Water Resources Committee
reviewed this item at a meeting held on November 3,2008 and the
following comments were made:.
•Staff is requesting that the Board approve the Water Supply
Assessement Report (WSA)for the Paragon Management Company
Otay Business Park (Business Park)development proposal as
required by Senate Bill 610 (SB 610).Staff indicated that
this request is similar to the WSA approval request
presented to the Board in December 2007 for the Otay
Crossings Commerce Park (Commerce Park).
•The Business Park is located adjacent to and west of the
Commerce Park.The development will encompass
approximately 161 acres with 59 lots.It is expected to
utilize nearly 162 acre feet of water annually of which 11%
will be recycled water (approximately 20 acre feet).
•The proposed development only requires SB 610 compliance as
it is purely an industrial development (SB 221 is required
for residential developments).
•An approved WSA must be included in the County of San
Diego's California Environmental Quality Act environmental
documentation (will be incorporated into the development's
EIR)as part of the approval process for this proposed
development.
•The Business Park's water demand was previously planned for
within the District's Urban Water Management Plans and
other water resources planning documents of the District,
the CWA and the MWD.
•It was noted that the water situation has worsened and MWD
has started their process of modifying their IRP to reflect
current water supply issues.
•Since this project has been planned for in the District,
CWA and MWD,the District's CWA water supply allocation
will not be impacted.
•The project is expected to be completed in approximately
five (5)years and its completion is intended to be
integrated with construction of State Highway 11.
•Since the development is within the District's plans and we
are in Level I -Voluntary Conservation,the District will
still issue letters.The developer is aware that the
District may not set new meters if a Drought Stage Level
III is called for by CWA except under certain conditions.
•There was discussion that should the District not approve
the WSA,what its affect would be to the District's CWA
allocation.It was indicated that allocations are
established by CWA and are based upon a certain time frame
and the allocation plan allows for growth.If the
development is not built,the allocation from CWA to the
District would be unaffected.
•The committee also discussed the consequences for the
developer should the District not approve the WSA.The
developer would have two (2)options:
Present their request to the County of Supervisors for
their approval;or
Take legal action (Writ of Mandamus)to force the
District to approve the WSA
It was indicated that the County of Supervisors would
possibly have no interest and that it is not likely that
the developer would take legal action against the District.
•The developer wishes to get the entitlements in place to be
prepared to move forward with the development when the
economy turns for the better.
•Staff indicated that they would prepare a powerpoint for
presentation to the full board at the November 13,2008
board meeting.
8
IJ
I,'"i"~
I
Following the discussion,the committee supported staffs'
recommendation and presentation to the board as an action item.
9
,'I
[,j
ATTACHMENT B
Background Information
The Otay Water District (District)prepared the Water Supply Assessment Report
(WSA Report)for the Otay Business Park (Business Park)development proposal at
the request of the County of San Diego (County).The District received the County's
written request on July 24,2008 and also received on September 23,2008 a 30-day
extension of time to complete and obtain the District Board of Directors approval of
the Business Park WSA Report.The Paragon Management Company submitted an
entitlement application to the County for the development of the Business Park
project.
The Business Park project is within the unincorporated area of the County of San
Diego,California and is located generally south of Otay Mesa Road and southeast of
the corner of Alta Road and future extension of Airway Road on Otay Mesa.The
southern boundary of the Business Park project abuts the United States/Mexico
international border.The Business Park project is located within the jurisdictions of
the District,San Diego County Water Authority (Water Authority),and Metropolitan
Water District of Southern California (MWD).
The WSA Report for the Business Park project has been prepared by the District in
consultation with Kimley-Horn and Associates,the Water Authority,and the County,
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 certain land use
decisions made by cities and counties.SB 610 requires that,if a city or county
makes certain determination in the planning and approval process of a new
development,the city or county must request the water pUNeyor of the public water
system that will serve the development to 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 within the Business Park WSA Report prepared by the
District at the request of the County.
The Business Park project proposed land uses are substantially consistent with the
zoning and densities contained in the East Otay Mesa Specific Plan Area.The San
Diego County Board of Supervisors adopted the East Otay Mesa Specific Plan Area
on July 27,1994.The East Otay Mesa Specific Plan Area land use are intended
primarily for accommodating wholesale storage and distribution,research,and
general industrial uses.The East Otay Mesa Specific Plan Area classifies the land
use of the Business Park site as mixed industrial.
The Paragon Management Company proposed development concept for the
approximately 161.6 acre Business Park project is planned as industrial and business
park land uses.The Business Park project consists of 59 industrial and business
park lots,circulation elements,2 storm water detention lots,and some open space.
The District depends on the Water Authority and the MWD 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 Resources Plans (IRPs)of the Water Authority and MWD for
documentation of supplies available to meet projected demands.These plans are
developed to manage the uncertainties and variability of multiple supply sources and
demands over the long-term through preferred water resources strategy adoption and
resource development target approvals for implementation.
New uncertainties that could significantly affect California's water resources have
come to light over the past few years.
• A Federal Court ruling that sets operational limits on Sacramento-San Joaquin
Delta pumping from December to June to protect the Delta smelt.Based on
initial estimates,MWD could see as much as a 22%reduction in State Water
Project supplies in 2008 and beyond.Actual supply curtailments for MWD are
contingent upon fish distribution,behavioral patterns,weather,Delta flow
conditions,and how water supply reductions are divided between state and
federal projects.
•Climate changes due to global warming (extended drought conditions).
These uncertainties have rightly caused concern among Southern California water
supply agencies regarding the validity of the current water supply documentation.
MWD'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 in achieving
the long-term IRP targets.
MWD is currently involved in several proceedings concerning Delta operations to
evaluate and address environmental concerns.In addition,at the State level,the
Delta Vision and Bay-Delta Conservation Plan processes are defining long-term
solutions for the Delta.MWD is actively engaged in these processes and will initiate
the next 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 MWD's 2025 Dry
Resources Mix with the supply buffer included.A 22%cutback in SWP supply
represents an overall 2%(22%of 9%is 2%)cutback in MWD supplies in 2025.
2
In Fiscal Year 2005,the Water Authority purchased 518,625 acre feet of water from
MWD,or approximately 25%of MWD's water sales.Using the 2%cutback of 25%
represents a net 0.5%impact on Water Authority supplies in Fiscal Year 2005.
Neither the Water Authority nor MWD have stated that there is insufficient water for
future planning in Southern California.Each agency is in the process of reassessing
and reallocating their water resources.
Under preferential rights,MWD can allocate water without regard to historic water
purchases or dependence on MWD.Therefore,the Water Authority and its member
agencies are taking measures to reduce dependence on MWD through development
of additional supplies and a water supply portfolio that would not be jeopardized by a
preferential rights allocation.
For Fiscal Year 2006 the Water Authority's preferential right was 16.46%of MWD's
supply.So MWD 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
MWD supplies to 372,922 acre feet per year by 2030,which is a 28%reduction from
the Fiscal Year 2005 Water Authority purchase from MWD.This reduction is planned
to be achieved through diversification of their water supply portfolio.This reduction
would more than compensate for the MWD predicted 22%reduction in water supply
available from the State Water Project,which could be an overall 2%cutback in
MWD 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
Water Authority and MWD),along with the District,fully intend to maintain sufficient
reliable supplies through the 20-year planning horizon under normal,single-and
multiple-dry years,conditions to meet projected demand of the Business Park
project,along with existing and other planned development projects within the
District's service area.
3
If the regional water suppliers determine additional water supplies will be required or
in this case,that water supply portfolios need to be reassessed and redistributed with
the intent to serve the existing and future water needs throughout Southern
California,the agencies must indicate the status or stage of development of actions
identified in the plans they provide.MWD's plans to update its IRP which will then
cause the Water Authority to update its IRP and UWMP,that 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
Business Park WSA Report does not in any way guarantee water supply to the
Business Park 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.
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 Business Park project WSA,the project
proponents can proceed with the draft EIR CEQA review process and water supply
issues will be addressed in the EIR,consistent with the WSA Report.
The District as well as others can comment on the draft EI R with recommendations
that water conservation measures and actions be employed on the Business Park
project.
The WSA Report identifies that the water demand projections for the proposed
Business Park project are included in the water demand and supply forecasts within
the Urban Water Management Plans and other water resources planning documents
of the District,the Water Authority,and MWD.Water supplies necessary to serve the
demands of the proposed Business Park project,along with existing and other
projected future users,as well as the actions necessary to develop these supplies,
have been identified in the water supply planning documents of the District,the Water
Authority,and MWD.
The WSA 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 Business Park 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
4
normal conditions,and in single-and multiple-dry years,to meet the projected
demand of the proposed Business Park project and the existing and other planned
development projects within the District.
Accordingly,after approval of a WSA Report for the Business Park project by the
District's Board of Directors,the WSA Report may be used to comply with the
requirements of the legislation enacted by SB 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)Environmental Impact Report (EIR)compliance process for
the Business Park project as a WSA Report consistent with the requirements of
the legislation enacted by SB 610.The County as lead agency under the CEQA
for the Business Park project EIR may cite the approved WSA Report as evidence
that a sufficient water supply is planned and intended to be available to serve the
Business Park project.
5
ATTACHMENT C
OTAY WATER DISTRICT
WATER SUPPLY ASSESSMENT REPORT
Otay Business Park
Prepared by:
James F.Peasley,P.E.
Engineering Manager
Otay Water District
in consultation with
Kimley-Horn and Associates
and
San Diego County Water Authority
October 2008
Otay Water District
Dtay Water District
Water Supply Assessment Report
Dtay Business Park
Water Supply Assessment Report
October 2008
Otay Business Park
Table of Contents
Executive Summary:1
Section 1:Purpose 4
Section 2:Findings 5
Section 3:Project Description 6
Section 4:Otay Water District.'i :8
4.1 Urban Water Management Plan 9
Section 5:Historical and Projected Water Demands 10
5.1 Demand Management (Water Conservation)14
Section 6:Existing and Projected Supplies 16
6.1 Metropolitan Water District ofSouthern California 2005 Regional Urban Water
Management Plan 17
6.1.1 Availability ofSufficient Supplies and Plans for Acquiring Additional
Supplies 17
6.1.2 Metropolitan Capital Investment Plan 19
6.2 San Diego County Water Authority Regional Water Supplies 19
6.2.1 Availability ofSufficient Supplies and Plans for Acquiring Additional
Supplies 20
6.2.2 Water Authority Capital Improvement Program and Financial Information 30
6.3 Otay Water District.31
6.3.1 Availability ofSufficient Supplies and Plans for Acquiring Additional
Supplies 31
6.3.2 Otay WD Capital Improvement Program 36
Section 7:Conclusion -Availability ofSufficient Supplies 37
Source Documents 41
Appendices .
Appendix A:Otay Business Park Project Regional Location Map
Appendix B:Otay Business Park Project Concept Plan
Gtay Water District
Water Supply Assessment Report
Gtay Business Park
Otay Water District
Water Supply Assessment Report
October 2008
Otay Business Park
Executive Summary
The Otay Water District (WD)prepared this Water Supply Assessment Report (WSA Report)
at the request ofthe County ofSan Diego (County)for the Otay Business Park (Business
Park)project.The Paragon Management Company has submitted an entitlement application
to the County for the development ofthe Business Park project.
The Business Park project is currently located within the jurisdictions ofthe Otay WD,the
San Diego County Water Authority (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 Business Park project proposed land uses are substantially consistent with the zoning and
densities contained in the East Otay Mesa Specific Plan Area.The San Diego County Board
ofSupervisors adopted the East Otay Mesa Specific Plan Area on July 27,1994.The East
Otay Mesa Specific Plan Area land use are intended primarily for accommodating wholesale
storage and distribution,research,and general industrial uses.The East Otay Mesa Specific
Plan Area classifies the land use ofthe Business Park site as mixed industrial.
The Paragon Management Company proposed development concept for the approximately
161.6 acre Business Park project is planned as industrial and business park land uses.The
Business Park project consists of59 industrial and business park lots,circulation elements,2
storm water detention lots,and some open space.
Using the land use demand projection criteria as established in the Otay WD 2002 Water
Resources Master Plan (WRMP),the projected potable water demand for the proposed
Business Park project totals 0.144 million gallons per day (mgd)or about 162 acre feet per
year (ac-ft/yr).The projected recycled water demand for the proposed Business Park project
is 0.017 mgd or about 19.5 ac-ft/yr,representing about 11 %oftotal Business Park project
demand.
The Business Park project development proponents are required to use recycled water for
irrigation.The primary benefit ofusing recycled water is that it will offset the potable water
1
Otay Water District
Water Supply Assessment Report
Otay Business Park
demands by an estimated 19.5 ac-ft/yr.The Otay WD 2002 WRMP and 2005 Urban Water
Management Plan (UWMP)anticipated that the Business Park project would use both potable
and recycled water.
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 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 Water Authority nor Metropolitan jurisdictions (i.e.
pending or proposed annexations)or that have revised land use plans than reflected in the
existing growth forecasts.Proposed land areas with pending annexations or revised land use
plans typically result in creating higher demand and supply requirements than 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
caused by annexations or revised land use planning decisions.
Metropolitan's Integrated Resources Plan (IRP)identifies a mix ofresources (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
2004 update to the IRP (2004 IRP Update)includes a planning buffer supply to mitigate
against the risks associated with implementation oflocal and imported supply programs.The
planning buffer identifies an additional increment ofwater that could potentially be developed
ifother supplies are not implemented as planned.As part ofimplementation ofthe planning
buffer,Metropolitan periodically evaluates supply development to ensure that the region is
not under or over developing supplies.Managed properly,the planning buffer will help
ensure that the southern California region,including San Diego County,will have adequate
supplies to meet future demands.
Water supply agencies throughout California continue to face climatological,environmental,
legal,and other challenges that impact water source supply conditions,such as the relatively
recent court ruling regarding the Sacramento-San Joaquin Delta issues.Challenges such as
these essentially always will be present.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 11.4 oftheir 2005 Regional Urban Water Management Plan (RUWMP),
Metropolitan states that through effective management ofits water supply,they fully expect
to be 100 percent reliable in meeting all non-discounted non-interruptible demands throughout
2
Otay Water District
Water Supply Assessment Report
Otay Business Park
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.Also,in evaluating the availability ofsupply,a Water Authority
member agency could determine if"offset"supplies are available as a result ofother land use
decisions,which lowered water use within their service area.
The County Water Authority Act,Section 5 subdivision 11,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 ofpreparation of a written assessment report,an agency's shortage contingency
analysis should be considered in determining sufficiency ofsupply.Section 9 ofthe 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 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 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 ofshortages and ensure an equitable allocation
ofsupplies.
This WSA Report identifies that the water demand projections for the proposed Business Park
project are included in the water demand and supply forecasts within the water resources
planning documents ofthe Otay WD,the Water Authority,and Metropolitan.Water supplies
necessary to serve the demands ofthe proposed Business Park project,along with existing and
other projected future users,as well as the actions necessary to develop these supplies,are and
will be identified in the water supply planning documents ofthe Otay WD,the Water
Authority,and Metropolitan.
This WSA Report includes,among other information,an identification ofexisting water
supply entitlements,water rights,water service contracts,or agreements relevant to the
identified water supply needs for the proposed Business Park project.This WSA Report
demonstrates that sufficient water supplies are planned for and are intended to be made
available over a 20-year planning horizon in normal years and in single and multiple dry years
to meet the projected demand ofthe proposed Business Park project and the existing and other
planned development projects within the Otay WD.
Accordingly,after approval of a WSA Report for the Business Park project by the Otay WD
Board ofDirectors (Board),the WSA Report may be used to comply with the requirements of
the legislation enacted by Senate Bi11610 as follows:
3
Otay Water District
Water Supply Assessment Report
Otay Business Park
Senate Bill (SB)610 Water Supply Assessment:The Otay WD Board approved WSA
Report may be incorporated into the California Environmental Quality Act (CEQA)
Environmental Impact Report (EIR)compliance process for the Business Park project as a
water supply assessment report consistent with the requirements ofthe legislation enacted
by SB 610.The County as lead agency under CEQA for the Business Park project EIR
may cite the approved WSA Report as evidence that a sufficient water supply is planned
to be made available to serve the Business Park project.
Section 1 -Purpose
The Paragon Management Company submitted an entitlement application to the County of
San Diego (County)for the development ofthe Otay Business Park (Business Park)project.
The County requested that Otay Water District (WD)prepare a Water Supply Assessment
Report (WSA Report)for the Business Park project.The Business Park project description is
provided in Section 3 ofthis WSA Report.
This WSA Report for the Business Park project has been prepared by the Otay WD in
consultation with Kimley-Horn and Associates,the San Diego County Water Authority
(Water Authority),and the County 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 certain 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 of
certain proposed projects.The County requested that Otay WD prepare a water supply
assessment as per the requirements ofSB 610.The requirements ofSB 610 are being
addressed by this WSA Report.
This WSA Report evaluates water supplies that are and planned to be available during normal,
single dry year,and multiple dry water years during a 20-year planning horizon to meet
existing demands,expected demands of the Business Park project,and reasonably foreseeable
planned future water demands served by Otay WD.The Otay WD Board ofDirectors
approved WSA Report is planned to be used by the County in its evaluation ofthe Business
Park project under the CEQA and Tentative Map approval processes.
4
Gtay Water District
Water Supply Assessment Report
Gtay Business Park
Section 2 -Findings
The Otay WD prepared this WSA Report at the request ofthe County for the Business Park
project.The Paragon Management Company submitted an entitlement application to the
County for the development ofthe Business Park project.
The Business Park project is currently located within the jurisdictions ofthe 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 Water Authority and Metropolitan have an established process that ensures supplies are
being planned to meet future growth.Existing land use plans,any revisions to these land use
plans,and annexations are captured in San Diego Association of Governments (SANDAG)
updated forecasts for land use planning,demographics,and economic projections.SANDAG
serves as the regional,intergovernmental planning agency that develops and provides forecast
information.The Water Authority and 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 use developments that are not within the Water Authority nor Metropolitan
jurisdictions or that have revised land uses than reflected in the existing growth forecasts.
Proposed land areas to be annexed or revised land use plans typically result in creating higher
demand and supply requirements than anticipated.The Water Authority and Metropolitan
next demand and supply forecasts would then capture any increase or decrease in demands
and resulting supplies as a result ofrevised land use plans and annexations.Therefore the
most current water demand and supply planning information will be a permanent part ofand
incorporated within the Water Authority and Metropolitan updated water resources planning
processes and documents.
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
existing and other projected future users,as well as the actions necessary to develop these
supplies.Through this process the necessary demand and supply information is thus assured
to be identified and incorporated within the water supply planning documents ofthe Water
Authority and Metropolitan.
Water supplies necessary to serve the demands ofthe proposed Business Park project,along
with existing and other reasonably foreseeable projected future users,as well as the actions
necessary to develop these supplies,are identified and included within the water supply
planning documents ofthe Otay WD,Water Authority,and Metropolitan.This WSA Report
demonstrates and documents that with development ofthe resources currently identified and
5
Ii
I'
i',
':
"!
,
;!
Otay Water District
Water Supply Assessment Report
Otay Business Park
those that may be additional acquired,that there is intended to be sufficient water supplies for
the Business Park project and that sufficient water supplies is planned for by the Otay WD,
Water Authority,and Metropolitan for over the next 20-year planning horizon to meet the
projected demand ofthe proposed Business Park project and the existing and other reasonably
foreseeable planned development projects within the Otay WD.
This WSA Report includes,among other information,an identification ofexisting water
supply entitlements,water rights,water service contracts,or agreements relevant to the
identified water supply needs for the proposed Business Park 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 to document that sufficient water supplies are planned for to
meet projected water demands ofthe Business Park project and the existing and other
reasonably foreseeable planned development projects within the OtayWD 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 water supply is planned for to meet the estimated water demand ofthe Otay
WD (38,774 acre-feet (ac-ft)in 2005 to 72,853 ac-ft in 2025)per the Otay WD 2005 Urban
Water Management Plan.Based on dry year forecasts,the estimated water supply is also
planned for 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.
Using this model,the projected single dry year necessary supply requirement for 2010 is
53,299 ac-ft and for multiple dry years beginning in 200746,212 ac-ft,48,574 ac-ft,and
50,936 ac-ft,respectively,is necessary to meet demand.The Otay WD recycled water supply
is assumed to be drought-proof and not subject to reduction during dry periods.
Together,these findings demonstrate that sufficient water supplies are planned for as well as
the actions necessary to develop these supplies are documented,to serve the proposed
Business Park project and the existing and other reasonably foreseeable planned projects
within the Otay WD in both normal and single and multiple dry year forecasts over a 20-year
planning horizon.
Section 3 -Project Description
The Otay Business Park project is within the unincorporated area ofthe County ofSan Diego,
California and is located generally south ofOtay Mesa Road and southeast ofthe comer of
Alta Road and future extension ofAirway Road on Otay Mesa.The southern boundary ofthe
Business Park project abuts the United States/Mexico international border.Refer to Appendix
A for the regional location map ofthe proposed Business Park project.The Business Park
project is currently within the jurisdictions ofthe Otay WD,the Water Authority,and
Metropolitan.
6
Otay Water District
Water Supply Assessment Report
Otay Business Park
The Business Park project proposed land uses are substantially consistent with the zoning and
densities contained in the East Otay Mesa Specific Plan Area.The San Diego County Board
ofSupervisors adopted the East Otay Mesa Specific Plan Area on July 27,1994.The East
Otay Mesa Specific Plan Area classifies land use for the Business Park project site as mixed
industrial.
The East Otay Mesa Specific Plan Area is bordered on the west by the City of San Diego,on
the south by the international border with Mexico,and on the east by the San Ysidro
Mountains.To the immediate north are the existing 773.5 acre site ofthe Richard J.Donovan
State Correctional Facility and the 519.0 acre site ofthe County's George F.Bailey and East
Mesa Detention Facilities.
The East Otay Mesa Specific Plan Area encompasses approximately 3,300 gross acres and
designates approximately 2,372 acres as mixed industrial land use.The planned mixed
industrial land uses are intended primarily for accommodating wholesale storage and
distribution,warehousing,research services,and general industrial uses.The land use plan
includes very low-density rural residential development in the hillside areas,state route right-
of-way and a transit station,a fire station,a sheriffstation,and commercial purposes.
The Paragon Management Company proposed development concept for the approximately
161.6 acre Business Park project is planned as mixed industrial and business park land uses as
shown in Table 1.
Table 1
Otay Business Park Proposed Land Uses·
Otay Business Park Mixed Industrial and Business Park 161.6 acres o
Totals 161.6 acres
Source:Kimley-Hom and Associates Concept Plan for the Otay Business Park.
ounits
The approximately 161.6 acre Business Park project development plan is also intended to
accommodate future construction of State Route 11 (SR-ll).Once ofthe proposed
alignments ofSR-11 would traverse the northeastern portion ofthe site to provide
accessibility to the planned future third border crossing facility.Refer to Appendix B for the
Business Park project proposed concept plan.
The County ofSan Diego has identified discretionary actions and/or permit approval
requirements for the Business Park project.The projected potable and recycled water
demands associated with the Business Park project have considered the discretionary actions
and/or permit approvals and are incorporated into and used in this WSA Report.The water
7
Otay Water District
Water Supply Assessment Report
Otay Business Park
demands for the proposed Business Park project are provided in Section 5 -Historical and
Projected Water Demands.
Section 4 -Otay Water District
The Otay WD is a municipal water district formed in 1956 pursuant to the Municipal Water
District Act of1911 (Water Code §§71000 et seq.).The Otay WD joined the Water
Authority as a member agency in 1956 to acquire the right to purchase and distribute imported
water throughout its service area.The Water Authority is an agency responsible for the
wholesale supply ofwater to its 24 public agency members in San Diego County.
The Otay WD relies on the Water Authority for 100 percent ofits domestic water supply.
The Water Authority is the agency responsible for the supply ofimported water into San
Diego County through its membership in Metropolitan.The Water Authority currently
obtains the vast majority ofits imported supply from Metropolitan,but is in the process of
diversifying its available supplies.
The Otay WD provides water service to residential,commercial,industrial,and agricultural
customers,and for environmental and fire protection uses.In addition to providing water
throughout its service area,Otay WD also provides sewage collection and treatment services
to a portion ofits service area known as the Jamacha Basin.The Otay WD also owns and
operates the Ralph W.Chapman Water Recycling 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).
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 ofsouthern El Cajon,La Mesa,Rancho San Diego,Jamul,
Spring Valley,Bonita,and Otay Mesa,the eastern portion ofthe City ofChula Vista and a
portion of the City of San Diego on Otay Mesa.The Otay WD jurisdiction boundaries are
roughly bounded on the north by the Padre Dam Municipal Water District,on the northwest
by the Helix Water District,and on the west by the South Bay Irrigation District (Sweetwater
Authority)and the City ofSan Diego.The southern boundary of Otay WD is the international
border with Mexico.
The planning area addressed in the Otay WD 2002 Water Resources Master Plan (WRMP)
and the 2005 Urban Water Management Plan (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 ofInfluence ofthe Otay WD.Figure 3-1 contained
within the 2002 WRMP shows the jurisdictional boundary ofthe Otay WD and the Area of
8
Otay Water District
Water Supply Assessment Report
Otay Business Park
Influence.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 of Otay WD is rural and currently not within any
water purveyor jurisdiction and potentially could be served by the Otay WD in the future if
the need for imported water becomes necessary,as is the case for the Area ofInfluence.
The City of Chula 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 ofGovernments (SANDAG).
SANDAG serves as the regional,intergovernmental planning agency that develops and
provides forecast information through the year 2030.Population growth within the Otay WD
service area is expected to increase from the 2005 figure ofapproximately 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 (Otay Ranch
GDP),East Otay Mesa Specific Plan Area,San Diego County Community Plans,and City of
San Diego,City ofChula Vista,and County ofSan Diego General Plans.
The Otay WD long-term historic growth rate has been approximately 3%per year.In recent
past years,growth has occurred at a faster rate due to accelerated residential development in
the eastern portion ofthe City ofChula Vista.The SANDAG forecast had predicted this
accelerated growth to continue for another five to ten years.The growth rate has slowed 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
temperatures occasionally dipping to below freezing.Most ofthe region's rainfall occurs
during the months ofDecember 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 (EI 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.
4.1 Urban Water Management Plan
In accordance with the California Urban Water Management Planning Act,the Otay WD
Board ofDirectors adopted an Urban Water Management Plan in December 2005 and it was
subsequently submitted to the California Department ofWater Resources (DWR).DWR
required Otay WD to make revisions to the submitted plan.The Otay WD Board ofDirectors
9
Otay Water District
Water Supply Assessment Report
Otay Business Park
adopted the revised 2005 UWMP in July 2007.As required by law,the Otay WD revised
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 revised 2005 UWMP along with supplemental
information from the Otay WD 2002 WRMP 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 ofSan Diego,City ofChula 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 2002 WRMP and revised 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 ofa century ofpractical application and is used by many cities and
water agencies throughout the United States.The Water Authority's version ofthe MAIN
model was modified to reflect the San Diego region's unique parameters and is known as
CWA-MAIN.
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 of Agreement (MOA),in which the Water Authority agreed to
use the SANDAG current regional growth forecast for water supply planning purposes.In
addition,the MOA recognizes that water supply reliability must be a component ofSan Diego
County's regional growth management strategy required by Proposition C,as passed by the
San Diego County voters in 1988.The MOA ensures a strong linkage between local general
plan land use forecasts and water demand projections and resulting supply needs for the San
Diego region.
Consistent with the previous CWA-MAIN modeling efforts,the 2005 water demand forecast
update utilized the latest official SANDAG demographic projections.The new SANDAG
2030 Forecast,released in December 2003,extended the projection horizon an additional ten
years to 2030.Member agency-level demographic and economic projections were compiled
from this SANDAG forecast and incorporated into the CWA-MAIN model.
10
Otay Water District
Water Supply Assessment Report
Otay Business Park
The municipal and industrial forecast also included an updated accounting ofprojected
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 ofWater 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 of the 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
consistent with Senate Bills 610 and 221 for proposed land use developments that either have
pending annexations into the Otay WD,Water Authority,and Metropolitan or have revised
land use plans than originally anticipated.
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 Business Park project as it is an
industrial subdivision.
In evaluating the availability of supply,the Water Authority member agency can determine if
"offset"supplies are available as a result of other land use decisions,which lowered water use
within their service area.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 the unanticipated demands.The
Water Authority and Metropolitan next forecast and supply planning documents would then
capture any increase or decrease in demands caused by annexations or revised land use plans.
11
Otay Water District
Water Supply Assessment Report
Otay Business Park
To fully quantify probable demands served by the Water Authority,lands with impending
applications for annexation to the Otay WD,Water Authority,and Metropolitan service areas
are identified in the Water Authority 2005 Updated UWMP.Working with its member
agencies,the Water Authority identified potential near-term annexations as being parcels that
may be annexed to the Otay WD,Water Authority,and Metropolitan within the next five
years.Estimated water demands for those parcels,were provided to the Water Authority by
the member agency or project proponent and then added to the Water Authority forecast.The
Water Authority included the potential near-term annexations land areas projected potable
water demands within their 2005 Updated UWMP to provide for more comprehensive supply
planning and assist member agencies such as Otay WD in complying with SB 610 and/or SB
221.Tables 2-2 and 2-9 within the Water Authority 2005 Updated UWMP provides projected
demand information for the anticipated pending annexations.
The historical and projected potable water demands for Otay WD are shown in Table 2.
Table 2
Historical and Projected Potable Water Fiscal Year Demands (acre-feet)
Incorporating Water Conservation BMP Effortsl
10,604 15,331 19,850 25,442 29,130 33,316 37,211 42,089
Multi-Family 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
Source:The Otay WD 2005 UWMP.
*Known losses (i.e.unaccounted for water in UWMP)and system losses unavailable.
The historical and projected recycled water demands for Otay WD are shown in Table 3.
12
Otay Water District
Water Supply Assessment Report
Otay Business Park
Table 3
Historical and Projected Recycled Water Fiscal Year Demands (acre-feet)
Incorporating Water Conservation BMP Efforts!
Landscape 614
Totals 614
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
Source:The Otay WD 2005 UWMP.
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 ofwater used in acre-
feet per acre per year.This approach is used for all the land use types except residential development where a
demandperdwellingunit 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 allocated.
To determine water duties for the various types ofland use,the entire water meter database ofthe
Otay WD is utilized and sorted bythe 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 of
residential,commercial,industrial,and institutional land uses.For example the water duty factors
for commercial and industrial land uses are estimated using I,785 and 893 gallons per dayper 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.
By applying the established water duties to the proposed land uses,the projected water
demand for the entire Otay WD planning area at ultimate development is determined.
Projected water demands for the intervening years were determined using growth rate
projections consistent with data obtained from SANDAG and the experience ofthe Otay WD.
Using the land use demand projection criteria as established in the Otay WD 2002 WRMP,
the projected potable water demand for the proposed Business Park project is shown in Table
4,which totals 0.144 mgd or about 162 ac-ft/yr.The projected recycled water demand for the
proposed Business Park project is provided in Table 5,which totals 0.017 mgd or about 19.5
ac-ft/yr,representing about 11 %oftotal Business Park project demand.
13
Otay Water District
Water Supply Assessment Report
Otay Business Park
Table 4
Otay Business Park Projected Potable
Water Annual Average Demands
Otay Business Park Mixed Industrial and Business Park
Totals
161.6 acres
161.6 acres
144,309
144,309
Table 5
Otay Business Park Projected Recycled
Water Annual Average Demands
Otay Business Park
Totals
Mixed Industrial and Business Park 8.1 acres
8.1 acres
17,383
17,383
The Business Park project proponents are required to use recycled water for irrigation.The
primary benefit ofusing recycled water is that it will offset the potable water demands by an
estimated 19.5 ac-ft/yr.The Otay WD 2002 WRMP and 2005 UWMP anticipated that the
Business Park project would use both potable and recycled water.
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 ofUnderstanding (MOU)Regarding Urban
Water Conservation in California,which created the California Urban Water Conservation
Council 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
participates in many water conservation programs designed and typically operated on a
14
Otay Water District
Water Supply Assessment Report
Otay Business Park
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 ofwater 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 ofits 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 behalfofits 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 revised 2005 UWMP.In partnership
with the Water Authority,the County ofSan Diego,City ofSan 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 bythe Otay
WD include the following:
•Supervisory Control and Data Acquisition System
The Otay WD implemented and has operated for many years a Supervisor Control and
Data Acquisition (SCADA)system to control,monitor,and collect data regarding the
operation ofthe 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,tum on or offpumping units,etc.The SCADA system
aids in the prevention ofwater 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 ofsuch 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 ofany future shortage.A
water shortage could exist based upon the occurrence ofone or more ofthe following
conditions:
1.A general water supply shortage due to increased demand or limited supplies.
2.Distribution or storage facilities ofthe Water Authority or other agencies become
inadequate.
15
Otay Water District
Water Supply Assessment Report
Otay Business Park
3.A major failure ofthe supply,storage,and distribution facilities ofMetropolitan,
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 thereofin the interests ofthe people ofthe 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 reports 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 BMP Reports for 2001 to 2004,as well as the
BMP Coverage Report for 2003-04,are included in the revised 2005 UWMP.
The Business Park project will implement the CUWCC Best Management Practices for water
conservation such as installation ofultra low flow toilets,development ofa water
conversation plan,and beneficial use ofrecycled water,all ofwhich are typical requirements
ofdevelopment projects within the County ofSan Diego.
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 ofthe Water Authority.The Water Authority is a
member public agency ofMetropolitan.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 100 percent ofits
potable water.The Water Authority in tum,currently purchases the majority ofits 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 Water Authority
and Metropolitan are actively pursuing programs and projects to diversify their water supply
resources.
The description of local recycled water supplies available to the Otay WD is also discussed
below.
16
Otay Water District
Water Supply Assessment Report
Otay Business Park
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 ofreasonable
and practical efficient water uses,recycling,and conservation activities.During the
preparation ofthe 2005 RUWMP,Metropolitan also utilized the current SANDAG regional
growth forecast in calculating regional water demands for the Water Authority service area.
I,i~~
•.'.~
!.I.II.1:1~:IrI
Ii
1
~i
";1
6.1.1 Availability ofSufficient Supplies and Plans for Acquiring Additional Supplies I
~;
Metropolitan is a wholesale supplier ofwater to its member public agencies and obtains its
supplies from two primary sources:the Colorado River,via the Colorado River Aqueduct
(CRA),which it owns and operates,and Northern California,via the State Water Project
(SWP).The 2005 RUWMP documents the availability ofthese existing supplies and
additional supplies necessary to meet future demands.
6.1.1.1 Metropolitan Supplies
Metropolitan's Integrated Resources Plan (IRP)identifies a mix ofresources (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
2004 update to the IRP (2004 IRP Update)includes a planning buffer supply to mitigate
against the risks associated with implementation of local and imported supply programs.The
planning buffer identifies an additional increment ofwater that could potentially be developed
ifother supplies are not implemented as planned.As part ofimplementation ofthe planning
buffer,Metropolitan periodically evaluates supply development to ensure that the region is
not under or over-developing supplies.Managed properly,the planning buffer will help
ensure that the southern California region,including San Diego County,will have adequate
supplies to meet future demands.
In November 2005,Metropolitan adopted its 2005 RUWMP in accordance with state law.
The resource targets included in the 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 ofthis process,Metropolitan also uses the current SANDAG regional growth forecast
in calculating regional water demands for the Water Authority's service area.
17
Dtay Water District
Water Supply Assessment Report
Dtay Business Park
As stated in Metropolitan's 2005 RUWMP,that plan may be used as a source document for
meeting the requirements of SB 610 and SB 221 until the next scheduled update is completed
in 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 of Metropolitan's 2005
RUWMP can be found on the World Wide Web at the following address:
www.mwdh20.com/mwdh20/pages/yourwater/RUWMP/RUWMP 2005.pdf.
Water supply agencies throughout California continue to face climatological,environmental,
legal,and other challenges that impact water source supply conditions,such as the relatively
recent court ruling regarding the Sacramento-San Joaquin Delta issues.Challenges such as
these essentially always will be present.The regional water supply agencies,the Water
Authority and Metropolitan,along with the Otay WD nevertheless fully intend to have
sufficient,reliable supplies to serve water 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 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 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 of56,000 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 during 2009.Activities associated with implementation ofPipeline 6 include
the following:
•Coordination between Metropolitan and the Water Authority regarding planning and
design ofthe pipeline 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 re-visit the 1993 alignment and evaluate alternative alignments north ofthe
San Luis Rey River in light ofchanged conditions since 1993.The Water Authority
18
Otay Water District
Water Supply Assessment Report
Otay Business Park
plans to conduct a similar feasibility study ofPipeline 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
As part ofMetropolitan's annual budget approval process,a Capital Investment Plan is
prepared.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.
Metropolitan's Capital Investment Plan includes a series ofprojects identified from
Metropolitan studies ofprojected 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 ofrecent actions pertaining to development ofthese supplies includes:
•In accordance with the Urban Water Management Planning Act,the Water Authority
adopted an Urban Water Management Plan (UWMP)in November 2005 and updated
the 2005 UWMP in April 2007 that identifies a diverse mix oflocal and imported water
supplies to meet future demands.A copy ofthe Water Authority's 2005 Updated
UWMP can be found on the World Wide Web at www.sdcwa.org.
•Deliveries ofconserved agricultural water from the Imperial Irrigation District (IID)to
San Diego County have increased annually since 2003,with 35,000 ac-ft ofdeliveries in
FY 2006.
•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 begun implementation ofthese projects,with the CC project now
complete and deliveries being made to the San Diego region.
19
Dtay Water District
Water Supply Assessment Report
Dtay Business Park
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.
6.2.1 Availability of Sufficient Supplies and Plans for Acquiring Additional Supplies
The Water Authority currently obtains imported supplies from Metropolitan,conserved water
from the CC lining project,and an increasing amount ofconserved 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 from Metropolitan,an increase ofapproximately 4,000 ac-ft over the
FY 2005 amount.
Section 135 ofMetropolitan's Act defines the preferential right to water for each ofits
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%ofMetropolitan'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 ofadditional 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 ofwater 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 11.4 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 Updated 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 ofconserved agricultural water from lID and water saved from the CC lining project.
The Water Authority is currently implementing the AAC lining projects.Table 6 summarizes
20
Otay Water District
Water Supply Assessment Report
Otay Business Park
the planned yields from these supply projects,with detailed infonnation included in the
sections to follow.Deliveries from Metropolitan are also included in Table 6,which is further
discussed in Section 6.1 above.The Water Authority's member agencies provided the
verifiable local supply targets for groundwater,groundwater recovery,recycled water,and
surface water,which are discussed in more detail in Section 5 ofthe Water Authority's 2005
Updated UWMP.
Table 6
Projected Verifiable Water Supplies -Water Authority Service Area
Normal Year (acre feet)
Water Authorit Su lies
Metropolitan Supplies 445,858 399,855 331,374 342,870 372,922
Water Authority/lID 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 Su lies
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 Updated Urban Water Management Plan.
Section 5 ofthe Water Authority's 2005 Updated 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 ofa 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-ft/yr 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 6,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
that must be satisfied before implementation ofthe project and its ultimate yield can be
detennined.These contingencies include obtaining legal entitlements for construction ofthe
project,detennination ofa 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.
21
I
I
I:':'
'I
!
Otay Water District
Water Supply Assessment Report
Otay Business Park
No large-scale seawater desalination facility has ever been permitted and constructed in
California.Perhaps the most significant issue for this desalination project as well as others
proposed along the California coastline is the ability to permit the facilities,including obtaining a
Coastal Development Permit from the California Coastal Commission.This project must also
secure arrangements for the delivery ofproduct water from the facility to the local water
agencies.These arrangements are currently in the planning stage.
The Water Authority's existing and planned supplies from the IID transfer and canal lining
projects are considered "drought-proof'supplies and should be available at the yields shown
in Table 6 in normal,single dry,and multi dry year scenarios.For dry year yields from
Metropolitan supplies,refer to Metropolitan's 2005 RUWMP,and are discussed in Section
6.1 above.
As part ofpreparation of a written water supply assessment,an agency's shortage contingency
analysis should be considered in determining sufficiency ofsupply.Section 9 ofthe 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 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 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 ofshortages and ensure an equitable allocation
ofsupplies.
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 ofthe 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.
22
iI!
I
!(~I
Otay Water District
Water Supply Assessment Report
Otay Business Park
Implementation Status
On October 10,2003,the Water Authority and lID executed an amendment to the original 1998
Transfer Agreement.This amendment modified certain aspects ofthe 1998 Agreement to be
consistent with the terms and conditions ofthe QSA and related agreements.It also modified
other aspects ofthe agreement to lessen the environmental impacts ofthe transfer ofconserved
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,lID filed a complaint in Imperial County Superior Court seeking
validation of13 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 the State are defending these suits and coordinating to seek validation ofthe
contracts.Implementation ofthe transfer provisions is proceeding during litigation.For further
information regarding the litigation,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 shortage circumstances.
The shortage premium period duration is the period ofconsecutive days during which any ofthe
following exist:1)a Water Authority shortage;2)a shortage condition for the Lower Colorado
River as declared by the Secretary;and 3)a Critical Year.Under terms 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
23
Otay Water District
Water Supply Assessment Report
Otay Business Park
Authority a like quantity and quality ofwater.The Water Authority will pay Metropolitan's
applicable wheeling rate for each acre-foot ofexchange 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.
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 IID,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 ofDirectors pursuant to applicable laws and regulation,and generally applicable to the
conveyance ofwater by Metropolitan on behalfofits 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 ofthe transfer agreement (2007),the
Water Authority will prepay lID an additional $10 million for future deliveries ofwater.lID
will credit the Water Authority for this up-front payment during years 16 through 30.
As part ofimplementation 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 offunding 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 of Conserved Water by and between IID and the Water Authority
(April 29,1998).This Agreement provides for a market-based transaction in which the Water
Authority would pay lID a unit price for agricultural water conserved by IID and transferred
to the Water Authority.
Revised Fourth Amendment to Agreement between IID and the Water Authority for Transfer of
Conserved Water (October 10,2003).Consistent with the executed Quantification Settlement
Agreement (QSA)and related agreements,the amendments restructure the agreement and
24
I
,
"
f
I
Otay Water District
Water Supply Assessment Report
Otay Business Park
modify it to minimize the environmental impacts ofthe transfer ofconserved water to the Water
Authority.
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 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-re1ated
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 IID and Water Authority's amended joint petition for approval ofa long-
term transfer ofconserved water from lID 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,
lID 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 ofReclamation'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.
25
Otay Water District
Water Supply Assessment Report
Otay Business Park
Environmental Impact Statement (EIS)for Conservation and Transfer Agreement.Bureau of
Reclamation issued a Record ofDecision on the EIS in October 2003.
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
(10/22/04)for potential take effects on state-listed/fully protected species associated with
lID/other California water agencies'actions on listed species in the Imperial Valley and Salton
Sea (per the June 28,2002 EIR).
California Endangered Species Act (CESA)Permit.A CESA permit was issued by California
Department 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 1IO-year life ofthe agreement.
Implementation Status
Earthwork for the Coachella Canal lining project began in November 2004 and involved
approximately 37 miles ofcanal.National Environmental Policy Act (NEPA)and CEQA
documentation is complete,including an amended Record ofDecision by the US.Bureau of
Reclamation (USBR).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 of conserved water started in 2007.
Preliminary design-related activities have begun on the AAC lining project,including ground
and aerial surveying,mapping cultural resources, and geotechnical investigations.The lining
project consists ofconstructing a concrete-lined canal parallel to 24 miles ofthe existing AAC
from Pilot Knob to Drop 3.NEPA and CEQA documentation is complete,environmental
mitigation measures have been identified,and Endangered Species Act consultations are
pending.Construction ofthe project has begun and construction is expected to be complete in
2010.
In 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 behalf ofUS.and Mexican groups
challenging the lining ofthe 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
26
Otay Water District
Water Supply Assessment Report
Otay Business Park
River allocation and not part ofMexico's allocation.The plaintiffs also allege a failure by the
United States to comply with environmental laws.Federal officials have stated that they
intend to vigorously defend the case.
Expected Supply
The AAC lining project will yield 67,700 acre-feet per year ofColorado River water for
allocation upon completion of construction.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 canal lining water will be allocated to the San Luis Rey Indian Water Rights
Settlement Parties.The remaining amount,77,700 acre-feet per year,will be available to the
Water Authority.According to the Allocation Agreement,lID 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 (110 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 part ofthe 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 behalfofits member agencies.
In accordance with the Allocation Agreement,the Water Authority will also be responsible
for a portion ofthe 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.
27
Otay Water District
Water Supply Assessment Report
Otay Business Park
Written Contracts or Other Proof
The expected supply and costs associated with the lining projects are based primarily on the
following documents:
u.s.Public Law 100-675 (1988).Authorized the Department ofthe Interior to reduce seepage
from the existing earthen AAC and CC.The law provides that conserved water will be made
available to specified California contracting water agencies according to established priorities.
California Department ofWater 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 byFirst 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 -IID Funding Agreement (2001).Reimburse IID for
project work necessary to construct a lined AAC in an amount not to exceed $126 million.
Metropolitan -CVWD Assignment and Delegation ofDesign 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 Department ofWaterResources 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 ofMission
Indians,the San Luis Rey River Indian Water Authority,the City ofEscondido,and Vista
Irrigation District (October to,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 lID,ifit exercises its call rights.
Amended and Restated Agreement between Metropolitan and Water Authority for the Exchange
ofWater (October to,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:
28
Otay Water District
Water Supply Assessment Report
Otay Business Park
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 II 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 ofWater Resources to help fund the canal lining
projects in furtherance ofimplementing 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 funds will be
available for use by the Water Authority,lID,or CVWD for the AAC and CC lining projects.
California Public Resources Code Section 75050Cb)(1).This section identifies up to $36 million
as available for water conservation projects that implement the Allocation Agreement as defined
in the Quantification Settlement Agreement.
Federal,State,andLocal 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 ofReclamation (Reclamation)in March
1994.A Record ofDecision was signed by Reclamation in July 1994,implementing the
preferred alternative for lining the AAC.A re-examination and analysis ofthese environmental
compliance documents byReclamation 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 EISIEIR CApri12001).The final EIRIEIS for the CC lining project was
completed in 2001.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.
29
Otay Water District
Water Supply Assessment Report
Otay Business Park
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 lID Board ofDirectors).;,1,
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 ofDirectors 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 World Wide Web at www.sdcwa.org/infra/cip.phtml.
6.2.2 Water Authority Capital Improvement Program and Financial Information ,
~i
i:,:j
One ofthe 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 ofan additional 50 mgd oftreatment
capacity immediately and another 50 mgd capacity by 2010.In response to this
recommendation,the Water Authority Board ofDirectors in September 2005,approved
construction ofa 100 mgd water treatment plant.The water treatment plant was completed
and placed into operation in 2008.For the near-term,the Water Authority and its member
agencies implemented short-term conservation programs and operational procedures to ensure
adequate supplies during peak summer periods.
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 of carryover 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 ofwater supplies to allow
the Water Authority to accept additional imported deliveries during periods of availability,
30
Otay Water District
Water Supply Assessment Report
Otay Business Park
such as during wet years,to ensure water availability during dry years.The Water Authority
is currently preparing an EIRIEIS 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 of development of the CIP projects.As described in the Water Authority's biennial
budget,a combination oflong-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 2002 Water Resources Master Plan and revised 2005 Urban Water
Management Plan contain comparisons ofprojected supply and demands through the year
2030.Projected potablewater resources to meet planned demands are currently 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 ofpotential groundwater supplies is a possibility
for consideration in the future to allow for less reliance upon imported water.The supply
forecasts contained within this WSA Report do not consider local groundwater development
bythe Otay WD as a supply resource.
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 based on the preceding
discussions regarding Metropolitan's and the Water Authority's water supply resources.
Historic imported water deliveries from the Water Authority to Otay WD and recycled water
deliveries from the Otay WD Ralph W.Chapman Water Recycling Facility (RWCWRF)are
shown in Table 7.Since the year 2000 through mid May 2007,recycled water demand has
exceeded the supply capability typically in the summer months.The RWCWRF is limited to
a maximum production ofabout 1,300 ac-ft/yr.This recycled water supply shortfall has been
met by supplementing with potable water into the recycled water storage system as needed by
adding potable water supplied bythe Water Authority.On May 18,2007 an additional source
ofrecycled water supply from the City ofSan Diego's South Bay Water Reclamation Plant
(SBWRP)became available.The supply ofrecycled water from the SBWRP is a result of
essentially 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.
31
Otay Water District
Water Supply Assessment Report
Otay Business Park
Table 7
Historic Imported and Local Water Supplies
Otay Water District
1980 12,558
1985 14,529
1990 23,200
1995 20,922
2000 30,936
2005 40,322
Source:Otay WD operational records.
6.3.1.1 Imported and Regional Supplies
o
o
o
614
948
1,227
12,558
14,529
23,200
21,536
31,884
41,549
The availability of sufficient imported and regional potable water supplies to serve existing
and planned uses within Otay WD is demonstrated in the above discussion on Metropolitan
and the Water Authority's water supply reliability.The County Water Authority Act,Section
5 subdivision 11,states that the Water Authority "as far as practicable,shall provide each of
its member agencies with adequate supplies 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
2006 the Otay WD received delivery ofabout 41,700 ac-ft ofsupply from the Water
Authority,which includes the potable water supplement for the recycled water system supply
needs.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 revised 2005 UWMP.These figures take into
account the amount oflocal supply (i.e.conservation and recycling)that is expected to meet
demands within Otay WD service area.
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
32
Otay Water District
Water Supply Assessment Report
Otay Business Park
treatment plant became fully operational in August 2005.This supply link consists ofthe
typical storage,transmission,pumping,flow measurement,and appurtenances 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 treated water 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.ill 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 ofapproximately 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 ofraw 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 currently under development to access 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 necessary
supply link facilities are in various stages ofdevelopment from design to facilities that
are currently under construction.The required supply link facilities are scheduled to be
fully operational by March 2010.The planned operational testing and startup ofthe
supply link is planned to occur in December 2009.The Otay WD is required to take a
minimum oflO,OOO ac-ft/yr oftreated water from the RM.Levy WTP supplied from the
regions raw water system.
Cost and Financing
The capital improvement costs associated with water supply and delivery are financed
through the Otay WD water meter capacity fee 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 RM.
Levy WTP is based on the following documents.
Agreement for the Purchase ofTreated Water from the Otay Water Treatment Plant between the
City ofSan Diego and the Otay Water District.The Otay WD entered into an agreement dated
33
Otay Water District
Water Supply Assessment Report
Otay Business Park
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 Authority and Otay Water District Regarding
Implementation ofthe East County Regional Treated Water Improvement Program.The
ECRTWIP Agreement requires the purchase ofat least 10,000 ac-ft per year ofpotable 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 Otay 14 Flow Control Facility
physical capacity.The Water Authority and Otay WD to 50%share the capital cost to expand its
capacity from 8 mgd to 16 mgd.
Federal,State,andLocal Permits/Approvals
The Otay WD has 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.
Design-related activities have begun on the transmission main and Otay 14 Flow Control
Facility associated with the ECRTWIP Agreement,including ground and aerial surveying,
mapping cultural resources,and other environmental documentation investigations.The
transmission main project consists ofconstructing 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 consists ofincreasing the capacity of
the existing systems from 8 mgd to 16 mgd.CEQA documentation is complete for both
projects.Construction ofboth ofthese projects is expected to be complete prior to January
2010.
The City ofSan 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
34
Otay Water District
Water Supply Assessment Report
Otay Business Park
Sweetwater River 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 Recycling 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,and other development projects.
The Otay WD projects that annual average demands for recycled water will to increase to
about 6,294 ac-ft/yr by 2025 and are estimated to approach 10,000 ac-ft/yr at ultimate build
out.About 1,300 ac-ft/yr is generated by the RWCWRF,with the remainder planned to be
supplied to Otay WD by the City ofSan Diego's SBWRP.
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 ofdollars 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 and Financing
The capital improvement costs associated with the recycled water supply and distribution
systems are financed through the Otay WD water meter capacity fee and user rate structures.
The Otay WD recycled water sales revenue,along with Metropolitan and the Water
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 ofrecycled 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 ofat least 6,721 ac-ft per year ofrecycled water from the SBWRP 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 final agreement on October 20,2003.
35
Gtay Water District
Water Supply Assessment Report
Gtay Business Park
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
ofSan Diego is required to meet all applicable federal,state,and local health and water
quality requirements for the recycled water produced at the SBWRP and delivered to Otay
WD in conformance with Order No.2000-203.
6.3.1.3 Potential Groundwater Supplies
The Otay WD revised 2005 UWMP contains a briefdescription 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.The Otay WD has a
few capital improvement program projects to continue the quest to develop potential
groundwater resources.These groundwater supply efforts are not currently considered as a
viable water supply resource to meet projected demands.
6.3.2 Otay WD Capital Improvement Program
The OtayWD 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 are
constructed when development activities proceed and require service to achieve 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 2002 WRMP.These
facilities are incorporated into the annual Otay WD Six Year Capital Improvement Program
36
Gtay Water District
Water Supply Assessment Report
Gtay Business Park
(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 2002 WRMP.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 proj ect 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 Business Park project is currently located within the jurisdictions ofthe Otay WD,the
Water Authority,and 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 Water Authority and Metropolitan have an established process that ensures supplies are
being planned for and documented to meet future growth.Any revisions to land use plans and
annexations are captured in updated SANDAG forecasts for land use planning,demographics,
and economic projections.The Water Authority and Metropolitan will update their demand
forecasts and supply needs based on the most recent SANDAG forecast approximately every
five years to coincide with preparation of their urban water management plans.Prior to the
next forecast update,local jurisdictions may require water supply assessment and/or
verification reports for proposed land use developments that are not within the Water
Authority nor Metropolitan jurisdictions or that have revised land use plans than reflected in
the existing growth forecast.Proposed land areas to be annexed or revised land uses typically
result in creating higher demand and supply requirements than originally anticipated.The
Water Authority and Metropolitan next demand and supply forecast would then capture the
revised demands and resulting supplies which will become a permanent part ofand
incorporated within the Water Authority and Metropolitan water resources planning
documents.
Metropolitan's Integrated Resources Plan (IRP)identifies a mix ofresources (imported and
local)that,when implemented,will provide 100 percent reliability for full-service demands
through the attainment of regional targets set for conservation,local supplies,State Water
Project supplies,Colorado River supplies,groundwater banking,and water transfers.The
2004 update to the IRP (2004 IRP Update)includes a planning buffer supply to mitigate
against the risks associated with implementation oflocal and imported supply programs.The
planning buffer identifies an additional increment ofwater that could potentially be developed
ifother supplies are not implemented as planned.As part ofimplementation of the planning
37
[
,
I
Otay Water District
Water Supply Assessment Report
Otay Business Park
buffer,Metropolitan periodically evaluates supply development to ensure that the region is
not under or over developing supplies.Managed properly,the planning buffer will help
ensure that the southern California region,including San Diego County,will have adequate
supplies to meet future demands.
In Section 11.4 oftheir 2005 Regional Urban Water Management Plan (2005 RUWMP),
Metropolitan states that through effective management ofits 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.
The County Water Authority Act,Section 5 subdivision 11,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 ofpreparation 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 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 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 ofshortages and
ensure an equitable allocation ofsupplies.
This WSA Report identifies that the water demand projections for the proposed Business Park
project are included in the water demand and supply forecasts within the water resources
planning documents ofthe Otay WD,the Water Authority,and Metropolitan.Water supplies
necessary to serve the demands ofthe proposed Business Park project,along with existing and
other projected future users,as well as the actions necessary to develop these supplies,are
also identified in the water supply planning documents ofthe Otay WD,the Water Authority,
and Metropolitan.The potable water demand projections and supply requirements for the
proposed Business Park project are currently within the water resources planning documents
ofthe Otay WD,Water Authority,and Metropolitan.
This 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 Business Park project.This WSA Report
demonstrates and documents that sufficient water supplies are and will be planned for and are
planned to be made available over a 20-year planning horizon for normal and in single dry
38
Otay Water District
Water Supply Assessment Report
Otay Business Park
and multiple dry years to meet the projected demand ofthe proposed Business Park project
and the existing and other planned development projects within the Otay WD.
Table 8 presents the forecasted balance ofwater demands and required supplies for the Otay
WD service area under average or normal year conditions.Table 9 presents the forecasted
balance ofwater demands and supplies for the Otay WD service area under single dry year
conditions.Table 10 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.Multiple dry year conditions for periods ending 2020,2025,and 2030 are provided in
the Otay WD revised 2005 UWMP.The projected potable demand and supply requirements
shown the Tables 8,9,and 10 are from the Otay WD revised 2005 UWMP and include those
ofthe Business Park project.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 9 and 10.The recycled water supplies are assumed to experience
no reductionin a dry year.
Table 8
Projected Balance ofWater Supplies and Demands
Normal Year Conditions (acre feet)
Water Authority Supply
Recycled Water Supply
Groundwater Supply
Total Required Supply
Total Projected Demand
Supply Deficit
45,772
4,040
o
49,812
49,812
°
52,349
4,684
o
57,033
57,033
°
59,799
5,430
o
65,229
65,229
°
66,560
6,294
o
72,854
72,854
°
75,108
7,297
o
82,405
82,405
°
Table 9
Projected Balance ofWater Supplies and Demands
Single Dry Year Conditions (acre feet)
Water Authority Supply 49,259 56,341 64,365 71,660 80,876
Recycled Water Supply 4,040 4,684 5,430 6,294 7,297
Groundwater Supply 0 0 0 0 0
Total Required Supply 53,299 61,025 69,795 77,954 88,173
Total Projected Demand 53,299 61,025 69,795 77,954 88,173
Supply 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.
39
Otay Water District
Water Supply Assessment Report
Otay Business Park
Table 10
Projected Balance ofWater Supplies and Demands
Multiple Dry Year Conditions (acre feet)
Water Authority Supply 50,675 52,091 53,509 54,925 56,341
Recycled Water Supply 4,169 4,298 4,426 4,555 4,684
Groundwater Supply 0 0 0 0 0
Total Required Supply 54,844 56,389 57,935 59,480 61,025
Total Projected Demand 54,844 56,389 57,935 59,480 61,025
Supply 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.
This WSA Report demonstrates that sufficient water supplies are planned for as well as the
actions necessary to develop these supplies are documented to meet projected water demands
ofthe Business Park project and the 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.
40
Otay Water District
Water Supply Assessment Report
Otay Business Park
Source Documents
County of San Diego,July 23,2008,Otay Business Park SB 610 and SB 221 Compliance
request letter received July 24,2008.
County ofSan Diego,September 18,2008,Otay Business Park SB 610 Compliance request
letter received September 22,2008.
County ofSan Diego,September 23,2008,Otay Business Park SB 610 Compliance time
extension letter received September 25,2008.
County ofSan Diego,"East Otay Mesa Specific Plan Area,"adopted July 27,1994.
Otay Water District,"2002 Water Resources Master Plan,"August 2002.
MWH Americas,Inc.and Otay Water District,"Otay Water District 2005 Urban Water
Management Plan,"December 2005 amended July 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.
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
Implementation ofthe East County Regional Treated Water Improvement Program.
Agreement between the San Diego County Water Authority and Otay Water District for
Design,Construction,Operation,and Maintenance ofthe Otay 14 Flow Control Facility
Modification.
Agreement between the Otay Water District and the City ofSan Diego for Purchase of
Reclaimed Water from the South Bay Water Reclamation Plant.
41
Otay Water District
Water Supply Assessment Report
Otay Business Park
Appendix A
Otay Business Park Project Regional Location Map
1
Otay Water District
Water Supply Assessment Report
Otay Business Park
.,-
2
Otay Water District
Water Supply Assessment Report
Otay Business Park
Appendix B
Otay Business Park Project Concept Plan
3
Otay Water District
Water Supply Assessment Report
Otay Business Park
~20J8 CONCEPT PlAN~.IIIl:.a:il;""-:::--------__,..l.O.ll;;E:le";IIIR:.&lI'W1tliliHm~EJ:I8I..~Prlb~lt:Ii\riH.1a"~glTy---B_u....sl_·n...;,E!.;;.ss;;...;..P.;;o......rk
ANOllI,~!JSE ...__
4
Otay Water District
Staff Report Attachment -Powerpoint Presentation
for the following agenda item:
ITEM7a
Approve the Water Supply Assessment Report dated
October 2008 for the Paragon Management Company Otay
Business Park Development Proposal as Required by
Senate Bill 610
Please reference Attachment 1 posted to
Otay Water District website.
AGENDA ITEM 8a
STAFF REPORT
Regular Board MEETING DATE:November 13,2008
James c~nce Manager W.OJG.F.NO,DlV.NO.All
Joseph.c m,Chief Financial Officer
SUBMITTED BY:
APPROVED BY:
(Chief)
APPROVED BY:German Alvarez,Assistant General Manager
(Asst.GM):
TYPE MEETING:
SUBJECT:Approve the District's Audited Financial Statements for the
Fiscal Year Ended June 30,2008
GENERAL MANAGER'S RECOMMENDATION:
That the Board accepts the District's Audited Financial
Statements (Attachment B),including the Independent Auditors'
unqualified opinion,for the Fiscal Year ended June 30,2008.
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
To inform the Board of the significant financial events which
occurred during the Fiscal Year ended June 30,2008 as reflected
in the audited financial statements.
ANALYSIS:
Teaman,Ramirez and Smith,Inc.,performed the audit and found
that,in all material respects,the financial statements
correctly represent the financial position of the District.
They found no material errors or weaknesses;therefore,there
are no findings to present in their "Management Letter."See
Attachment C.
Total Assets:
Total assets increased by $6.7 million or 1.23%during Fiscal
Year 2008.The vast majority of this increase can be attributed
to an increase in capital assets of $22.4 million,net of
related accumulated depreciation.
Total Liabilities &Net Assets:
Total liabilities decreased by approximately $3.1 million or
3.12%from the previous fiscal year.Underlying this change were
the following:
• A decrease in accounts payable and related liabilities of
approximately $1.4 million.Fluctuations of this
magnitude are expected given the nature of accounts
payable,and result from the timing of large payments to
vendors and other third parties .
• A reduction in long-term debt outstanding of $2.5
million as a result of scheduled debt payments.
The increase in total assets,along with the decrease in total
liabilities,yielded an increase in net assets (equity)of
approximately $9.8 million or 2.19%.
Capital Contributions:
Capital contributions totaled $14.9 million during Fiscal Year
2008,a decrease of $11.6 million or 43.75%over Fiscal Year
2007 contributions.This decrease is mainly due to the overall
slowdown/reduction of development projects,and the resulting
delays in completion and acceptance of projects because of the
current financial crisis in the housing sector.
Results of Operations:
Operating revenues increased $2.5 million or 4.63%,mainly as a
result of an increase in water sales of $2.2 million from the
prior fiscal year,due to the reduced rainfall during the
current year as well as an additional 220 new water meter sales.
Operating expenses increased by approximately $6.8 million or
10.55%due to the increase in water purchases,higher
depreciation expense from an aggressive review of long-term
fixed assets that were obsolete and/or no longer serviceable,as
well as increases in salaries,outside services,pension,and
health &life insurance costs.
Non-Operating Revenues &Expenses:
Non-operating revenues increased approximately $2.5 million due
to increases in investment income,taxes &assessments,and
2
healthcare reimbursements from CalPERS for other post employment
benefits (OPEB).
Non-operating expenses increased approximately $1.6 million due
primarily to an increase in interest expense from the COPS-2007.
Additional Audit Correspondence:
As a part of completing the audit engagement t the audit firm
also provides the following letters summarizing their
observations and conclusions concerning the Districtts overall
financial processes:
•Management Letter:No matters were noted involving the
internal controls and their operations that were
considered to be internal weaknesses.See Attachment C.
•Finance Committee Report:There were no noted
transactions entered into by the District during the year
that were both significant and unusual t or transactions
for which there was a lack of authoritative guidance or
consensus.No audit adjustments were proposed to correct
the financial statements.There were no disagreements
with management concerning financial accounting t
reporting,or auditing matters t and there were no
significant difficulties in dealing with management ln
performing the audit.See Attachment D.
•Report on Internal Control Over Financial Reporting:
Results of audit tests disclosed no instances of non-
compliance that are required to be reported under
Government Auditing Standards.See Attachment E.
•Single Audit Report on Federal Award Programs:Results
of audit tests disclosed no instances of non-compliance
that are required to be reported under Government
Auditing Standards.See Attachment F .
•Report on Applying Agreed-Upon Procedures:A review of
the Districtts investment portfolio at year end t and a
sample of specific investment transactions completed
throughout the fiscal year t disclosed no exceptions to
compliance with the Districtts Investment Policy.See
Attachment G.
3
FISCAL IMPACT:
None.
.~.·/7
,.,,
STRATEGIC OUTLOOK:
The District is responsible for providing a diverse range of
high quality public utility services to a customer base that
continues to expand,although at a slower rate than in prior
years.The District ensures its continued financial health
through long-term financial planning,formalized financial
policies,enhanced budget controls,fair pricing,debt planning,
and improved financial reporting.
LEGAL IMPACT:
None.
Gederal Manager
Attachments:
A)Committee Action Form
B)Audited Annual Financial Statements
C)Management Letter
D)Finance Committee Report
E)Report on Internal Control Over Financial Reporting
F)Single Audit Report on Federal Award Programs
G)Report on Applying Agreed-Upon Procedures
4
ATTACHMENT A
Approve the District's Audited Financial Statements for the
SUBJECT/PROJECT:Fiscal Year Ended June 30,2008
COMMITTEE ACTION:
The Finance,Administration and Communications Committee
discussed this item at a meeting held on October 28,2008 and
the following comments were made:.
•The audit of the District's FY 08 financials was performed
by Teaman,Ramirez and Smith,Inc.and the firm has found
no material errors or weaknesses and no findings to present
in their "Management Letter."
•This is the 5th year that Teaman,Ramirez and Smith,Inc.
have performed the audit on the District's financials.It
was noted that it has been a beneficial relationship
evidenced by the awards the District has received and staff
wished to acknowledge their firm.
•It was discussed that the District has received an
unqualified opinion,which is the highest opinion that can
be provided.It was indicated that the verbiage within the
financial statements and the footnotes did not change much
from last year's audit.There was some changes which
include:
The new requirement for the reporting of OPEB (GASB
45)is now being enforced (GASB 45 requires annual
reporting of the OPEB cost and the unfunded actuarial
accrued liabilities for past service costs).Footnote
9 was rewritten to fully comply with GASB 45.There
were no findings to report.
The statement on Net Assets now includes a more
descriptive designation for certain restricted monies.
"Restricted for Construction"is now used instead of
just "Restricted".
A new investment,"Coporate Medium-Term Notes"was
added in Footnote 2 which was acquired in FY 08.
Y:\Board\CurBdPkg\FINANCE\Audited Financial Statements FY08 Attach A 11-13-08.doc
Added a line in Footnote 6 to show the pre-paid OPEB
obligation.
•As part of completing the audit,the audit firm provides
letters summarizing their observations and conclusions
concerning the District's overall financial processes.
Single Audit Report:This is the second year that
this report is provided.It is required when Federal
Grant Expenditures are greater than $5 million in the
fiscal year.The results of the audit found no
instances of non-compliance.
Report on Applying Agreed-Upon Procedures:Required
to test for compliance with the District's Finance
Policies.The audit found no exceptions to report.
Finance Committee Report:Discusses conduct of the
audit,such as disagreements with management on
suggestions from the audit or problems during the
audit.There were no findings to report.
Management Letter:Findings of material problems with
internal controls or significant problems with
reporting.There were no matters to report.The
audit findings were clean.
•The committee inquired if there were any discussions during
the audit wherein a debate ensued.Staff indicated that
there was discussion on how the legal reimbursement in the
Northrop Grumman matter should be recorded as it came in so
late (should it be recorded in FY 08 or FY 09).It was
decided that because it was negotiated in FY 08 that it
should be recorded in FY 08.There was also a discussion
on how OPEB should be recorded.
•The committee inquired if any issues surfaced with regard
to non-compliance.It was discussed that this was a very
clean year and there were no issues identified.
•It was inquired if the $1.44 million noted in Footnote 2,
Cash and Investments,was the CD investment held by the
Neighborhood Bank.It was indicated that the monies are
part of the District's Union Bank deposits.It was noted
that bank deposits over $100,000 from government/public
entities must be collateralized (secured by pledging
government securities as collateral)per California
Government Code.It was indicated that the pledged
securities in the collateral pool must equal at least 110%
of the total amount deposited by the government/public
agency.This allows government/public agencies to have
amounts over $100,000 in the bank without worrying about
the bank institution failing.
•The committee inquired about the Restricted Net Asset
growth between 2007 and 2008.It was indicated that the
numbers reflect the monies received in the debt issued last
fiscal year.The totals will slowly drop as the District
utilizes the monies for capital projects.
•The committee also inquired if the auditor can clarify the
paragraph titled "Compliance and Other Matters"of
attachment E.Teaman,Ramirez and Smith,Inc.indicated
that the paragraph states that they are not allowed to
issue an opinion on non-compliance.Their focus is not to
test "non-compliance"but to test if there are material
mis-statements in the financials.
•It was noted that a more formal presentation of the Audited
Financial Statements will be presented at the board
meeting.
Following the discussion,the committee supported staffs'
recommendation and presentation to the board as an action item.
Otay Water District
Staff Report Attachment -Audited Financial Statements
for the following agenda item:
ITEM8a
Accept the District's Audited Financial Statements,
Including the Independent Auditors'Unqualified Opinion,
for the fiscal Year Ending June 30,2008
Please reference Attachment 2 postedto
Otay Water District website.
STAFF REPORT
AGENDA ITEM 8b
TYPE MEETING:Regular Board
SUBMITTED BY:Mark Watton,General Manager
APPROVED BY:
(Chief)
APPROVED BY:
(Ass!.GM):
MEETING DATE:
W.O./G.F.NO:
November 13,2008
DIV.NO.
SUBJECT:Prohibit the Purchase of Bottled Water with District
Resources
GENERAL MANAGER'S RECOMMENDATION:
N/A
COMMITTEE ACTION:
Please see attachment A
PURPOSE:
Present for the board's consideration prohibiting the purchase of
bottled water with District resources.
ANALYSIS:
This item was proposed by Director Mark Robak,Chair of the Finance,
Administration and Communications Committee.Director Robak has had
an interest in promoting actions that are friendly to the environment
and has been a proponent of eliminating bottled water for some time.
He noted in the attached article published by The Press-Enterprise on
October 21,2008,"Tap Water Making Comeback as Bottled Water Sparks
Economic,Environmental Concerns,"that more than 30 u.S.cities,
including Los Angeles and San Francisco,now prohibit spending public
money on bottled water.He would like to propose that Otay Water
District do the same and requested that an item be agendized
requesting that the board consider prohibiting the purchase of
bottled water with District resources.
FISCAL IMPACT:
Would save monies expended for the purchase of bottled water.
LEGAL IMPACT:
None;1Jfl ~1JK_
Genehl MaJier
ATTACHMENT A
Prohibit the Purchase of Bottled Water with District
SUBJECT/PROJECT:Resources
COMMITTEE ACTION:
The Finance,Administration and Communications Committee
discussed this item at a meeting held on October 28,2008 and
the following comments were made:.
•The committee indicated that the District's business is to
provide water and having the District utilize bottled water
for on-site meetings is counter to the District's main
business objective.By prohibiting the purchase of bottled
water with District resources,it was felt,it would send
the right message.
•It was indicated that the District does store bottled water
for the Emergency Operations Center for disaster
preparedness/emergencies.The prohibition would exclude
such bottled water purchases for emergency preparedness.
•It was noted that there are cities that have passed
resolutions to ban bottled water purchased with city
resources (Los Angeles,San Francisco,etc.).It was also
discussed that Chicago taxes bottled water purchases.
After further discussion on prohibiting the purchase of bottled
water with District resources,the committee was of two
conflicting opinions:1)to continue current practice;and 2)
to recommend the prohibition of the purchase of bottle water
with District resources.It was suggested that the request be
presented to the Board President and he can decide whether to
agendize for the full board's consideration.
Tap water making comeback as bottled water sparks economic,environmental concerns I...Page 1 of3
Comments 'P IRecommended ~
Tap water making comeback as bottled water sparks
economic,environmental concerns
I..~.~~I C II .",11111
liD Download story podcast
10:00 PM PDT on Tuesday,October 21,2008
By JANET ZIMMERMAN
The Press-Enterprise
One of the more popular stops at the University ofRedlands food court these days is the dispenser for
filtered tap water --free for customers with a reusable cup or bottle.
Those who forget their container can borrow one from the cafeteria,or buy a Nalgene sports bottle there
for a discount.
"It's important that there's an option that maybe steers more people away from the bottled water,"said
Brett Martin,who runs the college's food service program.
..............................
,~
Kurt MillerI The p,.css-Enlcrpriu
MollyOlerich,18,:1freshmanat theUnivCTsityofRedlands,fills Up:lrcusablebottlewith fillercdlapwatCT for free attheschoolfood
court.The campus's food-service provideris trying toreduce ils caroonfootprintbysteering people awayfrom bottledwater.
His company,Bon Appetit Management Co.,is among a growing number ofrestaurants,schools and
cities promoting tap water over bottled,or eliminating it altogether,because of economic and
environmental concerns.
http://www.pe.com/localnews/sbcounty/stories/PE_News_Loca1_S_tap22.3c42ba6.html 10/22/2008
Tap water making comeback as bottled water sparks economic,environmental concerns I...Page 2 of 3
More than 30 U.S.cities,including Los Angeles and San Francisco,now prohibit spending public
money on bottled water,as does the Berkeley schooi district.And eco-minded groups have launched
Internet-based campaigns dubbed Think Outside the Bottle and Tappening.
Despite such efforts,bottled water still sells,said Tom Lauria,vice president ofthe International Bottled
Water Association,which sets quality standards for 280 bottlers.Consumers concerned about health and
convenience drive the demand,he said.
Americans consumed 8.8 billion gallons ofbottled water last year --29 gallons per person,or the
equivalent ofabout 185 20-ounce bottles --more than double the amount from a decade before,
according to the Beverage Marketing Corp.
Environmental Concerns
Increasingly,the tap water trend is spilling into the Inland area,driven largely by worries about the
greenhouse gas emissions from the production ofplastic bottles and shipping.
The Pacific Institute,an environmental group based in Oakland,estimates that producing bottled water
for Americans used the equivalent ofmore than 17 million barrels ofoil and produced more than 2.5
million tons of carbon dioxide in 2006.
Bon Appetit's move is part ofa campaign to lower the carbon footprint at the 400 private colleges and
businesses it serves nationwide.That includes buying 25 percent less meat and cheese over the next year
because those items are among the foods with the highest impact on climate change,company officials
said.
At catered events at the University ofRedlands,Bon Appetit stopped putting out water bottles and now
almost solely serves iced tap water in glasses.
While the company hasn't stopped selling bottled water,it is trying to be more conscientious about what
it offers,Martin said.Earlier this year,Redlands switched from imported Perrier and San Pellegrino to
beverages bottled in North America,to cut the number oftransportation miles and the oil it requires.
"There are some problems with bottled water,but those problems are really exacerbated when you fly it
halfway around the world to get it,"Martin said.
Changing Habits
A little research changed Greg Butterfield's mind about what water to serve at his upscale Palm Springs
eatery.
He liked that the Ty Nant water he served came in a blue bottle that matched the color scheme at
Copley's,his restaurant.But the environmental price of importing the trendy drink from Wales was too
high,Butterfield decided.
Searching for something closer to home,he settled on another blue bottle,Saratoga from New York.
"I looked for local water with a blue bottle but couldn't find one,"Butterfield said."We're always
thinking about the environment,any way you can save any little bit."
http://www.pe.comllocalnews/sbcounty/stories/PE_News_Local_S_tap22.3c42ba6.html 10/2212008
Tap water making comeback as bottled water sparks economic,environmental concerns I ...Page 3 of 3
Alma Jill Dizon,a Riverside real estate agent who began recycling in 1990,gave up bottled water after
she read a magazine article a couple ofyears ago about its environmental effects.
When friends offer her bottled water,she refuses,and uses the opportunity to try to change their minds.
"I say 'Do you know what that's costing us?'"Dizon said."It's a moral issue,to take care ofthe only
Earth we have."
Reach Janet Zimmerman at 951-368-9586 orjzimmerman@PE.com
http://www.pe.com/localnews/sbcounty/stories/PE_News_Local_S_tap22.3c42ba6.html 10/22/2008
STAFF REPORT
AGENDA ITEM 9a
Ii
I
TYPE MEETING:Regular Board Meeting
SUBMITTED BY:Mark Watton,
General Manager
MEETING DATE:
W.O./G.F.NO:
November 13,2008
DIV.NO.
SUBJECT:Board of Directors 2008 and 2009 Calendar of Meetings
GENERAL MANAGER'S RECOMMENDATION:
At the request of the Board,the attached Board of Director's meeting
calendar for 2008 and 2009 is being presented for discussion.
PURPOSE:
This staff report is being presented to provide the Board the
opportunity to review the 2008 and 2009 Board of Director's meeting
calendars and amend the schedules as needed.
COMMITTEE ACTION:
N/A
ANALYSIS:
The Board requested that this item be presented at each meeting so
they may have an opportunity to review the Board meeting calendar
schedule and amend it as needed.Please note that the December 2008
meeting has been moved from December 3 to Monday,December 15,2008.
STRATEGIC GOAL:
N/A
FISCAL IMPACT:
None.
LEGAL IMPACT:
None.
Attachments:Calendar of Meetings for 2008 and 2009
G:\UserDala\DistSec\WINWORD\STAFRPTS\Board Meeting Calendar ll-13-0B.doc
Regular Board Meetings:
January 14,2008
February 6,2008
March 5,2008
April 2,2008
May 7,2008
June 10,2008
July 2,2008
August 6,2008
September 3,2008
October 9,2008
November 13,2008
December 15,2008
Board Workshops:
Board of Directors,Workshops
and Committee Meetings
2008
Special Board or Committee Meetings (3rd
Wednesday ofEach Month or as Noted)
January 22,2008
February 20,2008
March 19,2008
April 16,2008
May 21,2008
June 18,2008
July 16,2008
August 20,2008
September 17,2008
October 15,2008
November 19,2008
December 17,2008
Budget Workshop,June 10 and 23,2008
Board Retreat Workshop,TBD
G:\UserData\DistSec\WINWORD\STAFRPTS\Board Meeting Calendar Attach A for 2008 ll-13-08.doc
Page 1 of 1
Regular Board Meetings:
January 7,2009
February 4,2009
March 4,2009
April 1,2009
May 6,2009
June 3,2009
July 1,2009
August 5,2009
September 2,2009
October 7,2009
November 4,2009
December 2,2009
Board Workshops:
Board of Directors,Workshops
and Committee Meetings
2009
Special Board or Committee Meetings (3 rd
Wednesday ofEach Month or as Noted)
January 21,2009
February 18,2009
March 18,2009
April 22,2009
May 20,2009
June 17,2009
July 22,2009
August 19,2009
September 23,2009
October 21,2009
November 18,2009
December 16,2009
Budget Workshop,TBD
Board Retreat Workshop,TBD
G:\UserData\DistSec\WINWORD\STAFRPTS\Board Meeting CalendarAttach A for 2009 11-13-08.doc
Page 1 of 1
AGENDA ITEM 10a
STAFF REPORT
November 13,2008TYPEMEETING:
SUBMITTED BY:
Regular Board
David Charles
Public serVi~C Manager
Jim Peasley .
Engineering M nager
Bob Kennedy 17.~
Associate Civil Engineer
Lisa Coburn-Boyd C{~
Environmental Specialist
MEETING DATE:
PROJECT NO.:d0526-
010287
DIV.NO.5
APPROVED BY:
(Chief)
APPROVED BY:
(Asst.GM):
SUBJECT:
Rod Posada ~~o\,.
Chief Engineering
Manny Magafia~qM~
Assistant Genera;Ma~(/=er,E~gineering &Operations
Informational Item on Request from Sycuan Band of the Kumeyaay
Nation for Annexation to the Otay Water District,San Diego
County Water Authority,Metropolitan Water District,and Local
Agency Formation Commission for Water (specified parcels only)
and Sewer
GENERAL MANAGER'S RECOMMENDATION:
This is an informational item and no action by the Otay Water
District Board is required at this time.
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To provide an update on the status of the annexation process
required in connection with Sycuan's petition for annexation and
request for water and sewer to be made available to certain real
property (refer to Attachment B for a map of the proposed
annexation areas),as follows:
a)Original reservation land,not currently within the
boundaries of any water or sewer district,and
consisting of approximately 640 acres (Reservation
Parcels).The Reservation Parcels would be annexed to
the District,to Improvement District No.18 for sewer
service availability and to Improvement District No.
20 for water service availability.
b)Eighteen parcels located within Padre Darn Municipal
Water District (Padre Darn)consisting of approximately
575 acres (Group B Parcels).The Padre Darn Parcels
would be de-annexed from Padre Darn,with Padre Darn's
consent,and annexed to the District and to
Improvement District No.18 for sewer service only.
c)Twenty-one parcels currently located within the
boundaries of the District consisting of approximately
1,270 acres (Group C Parcels).Sycuan is requesting
that these parcels be annexed to Improvement District
No.18 for sewer service availability.
ANALYSIS:
The Otay Water District (District)received a petition,dated
April 11,2008 (Petition),from the Sycuan Band of the Kumeyaay
Nation (Sycuan)to annex the Reservation Parcels to the District
and to assist with the concurrent annexation of such parcels to
the San Diego County Water Authority (SDCWA)and the
Metropolitan Water District (MWD).In addition,the District is
assisting Sycuan with the Local Agency Formation Commission
(LAFCO)process for the reorganization of the Group B Parcels,
which Sycuan desires to de-annex from Padre Darn and concurrently
annex to the District in connection with sewer service
availability only.
On August 6,2008,following the District's initial review of
the Petition,the Board of Directors of the District adopted
Resolution No.4128 requesting terms and conditions from the
SDCWA and MWD for the proposed annexation of the Reservation
Parcels.Subsequently,District staff forwarded copies of
Sycuan's draft Sub-Area Master Plan (SAMP)and LAFCO Submittal
Package to the SDCWA.The SDCWA,in turn,forwarded said
documents to MWD for review and comment.
2
Sycuan retained Dudek I an environmental firml to be responsible
for drafting the California Environmental Quality Act (CEQA)
documents for the annexation.The District l as the lead agency
for CEQA purposes l is responsible for reviewing and ultimately
approving the CEQA documents.The SDCWA and MWD I as affected
agencies l must also be satisfied with the form of environmental
document prepared and the content of the document.
In early October 2008 1 after meeting with staff of the SDCWA and
receiving initial comments and direction from the SDCWA I the
District staff forwarded comments to Sycuan/s consultants.On
October 16 1 District staff participated in a follow-up meeting
requested by Sycuan/s consultants to discuss the environmental
documents I the SAMP I and the comments provided by the SDCWA and
the District.
On October 22 1 2008 1 taking advantage of the presence of MWD
staff at the SDCWA I an introductory meeting among the staff of
the District l the SDCWA I the MWD I and Sycuan/s consultants was
held.The discussion focused on the current requirements of the
SDCWA and MWD in connection with annexations.The group also
extensively discussed the reasons for the annexation request l
the status of the SAMP and environmental documents I the existing
and projected water demands within the Reservation Areal local
supplies I future development plans l conservation measures on-
site and the proposed demand offset.The meeting was positive
and Sycuan agreed to meet most of the CWA/MWD requirements for
the annexation.A lingering issue is how to address the water
offsets.Staff is evaluating pertinent projects to meet the
obligations.
Both the SDCWA and MWD requested that copies of the draft
environmental documents be circulated to their staff in their
current draft form.This is not the form in which the
environmental documents are typically circulated to other
agencies by the lead agency for comment.The District believes
the reason for this request is the uniqueness of the proposed
annexation.MWD indicates that it has previously received
requests for annexation from other Native American tribes l but
has never processed an annexation of this magnitude for a Native
American tribe.
It is anticipated that updated draft environmental documents I an
updated SAMP I and updated schedules will be circulated within
the next few days by Sycuan/s consultants.
3
FISCAL IMPACT:
STRATEGIC GOAL:
Provide water service to meet increasing customer needs.
LEGAL IMPACT:
None at this time.
$JLgJ:A:
P:\Puolic-S\Staff Reports\2008\BD 11-13-08,Staff Report,Information Item -Sycuan Annexation,(DC-RP).doc
DC/JP/BK/LC-B:jf
Attachments:
Attachment A -Cbmmittee Action
Attachment B -District Map showing proposed annexation area
4
SUBJECT/PROJECT:
R2092-001103
ATTACHMENT A
Informational Item on Request from Sycuan Band of the
Kumeyaay Nation for Annexation to the Otay Water District,
San Diego County Water Authority,Metropolitan Water
District,and Local Agency Formation Commission for Water
(specified parcels only)
COMMITTEE ACTION:
The Legal and Legislative Committee reviewed this item in
detail at a meeting held on October 28,2008.The
following comments were made:
•
•
•
•
•
This is an informational update on the status of the
Sycuan Annexation.
Staff noted that the board adopted a Resolution
requesting terms and conditions from CWA and MWD for
the proposed annexation of Sycuan's Reservation
Parcels on August 6,2008.
Sycuan has retained a consultant to assist them in
producing the Sub-Area Master Plan (SAMP)and the
Environmental Impact Report required in compliance
with the California Environmental Quality Act (CEQA)
Staff met with CWA in early October 2008 to discuss
the Reservation Annexation and compiled comments from
that meeting for Sycuan.Staff shared the comments
from that meeting with Sycuan and their consultants
and also met with them on October 16,2008 to discuss
the environmental documents,the SAMP and the comments
provided by CWA.
On October 22,2008 the staff's of Otay,CWA and MWD
met with Sycuan's consultant's to review the
annexation request application.The meeting was very
productive and additional comments were provided to
Sycuan concerning environmental issues.There was
concern by CWA that a Negative Declaration (NO)may
•
•
•
•
•
•
•
not be sufficient for CEQA and that a Mitigated
Negative Declaration (MND)may be required.
Staff indicated that a MND would address mitigating
impacts to the community outside of the reservation,
such as traffic,noise,the environment,etc.
Sycuan has made a business decision to move forward
with a ND as it requires less time and is less
expensive and they feel that it will be sufficient.
However,an annexation of sovereign land has not been
done before and staff has advised Sycuan that an ND
may not be sufficient and the annexation could be
turned back during the process,adding additional time
to the annexation process.Sycuan has indicated that
they will forward a letter to Otay acknowledging their
understanding of this possibility.
Sy~0an has expressed some frustration with Otay and
CWA with regard to the processing time of their
annexation request.They feel that our agencies are
not moving the annexation along fast enough and feel
that the annexation process can be completed in one
year.The District and CWA has put their annexation
on the "fast track,"however,it is likely to take two
years to complete the process with all agencies.
Sycuan has been made aware of this fact.
Sycuan's annexation request is for both water and
sewer services.Staff will be initiating a meeting
with LAFCO to discuss the annexation as well.
It was discussed that Sycuan has $70,000 on deposit
with the District to cover the cost of staff time to
process their annexation request.Twenty-two thousand
of the $70,000 has been expended to date.
It was also discussed that because the Reservation is
not a development that a City must approve,it does
not require a formal Water Supply Assessment Report
(SB610).However,it is felt that LAFCO may require
the SB610.The SB610 establishes how the District
plans to provide sufficient water supply for the
reservation/development.
It was discussed that an MOD was being drafted between
the District and Sycuan.The MOD will include the
total AF of water (400AF)that has been allocated for
Sycuan's Reservation land to formally document the
allowed allocation.
Following the discussion,the committee supported staffs'
recommendation and presentation to the full board as an
informational item.
SYCUAN SEWER
ANNEXATION MAP
~•./.MWDBOUNDARYSD",W"~"""':'_....I;:;<,.,~",,,-,WATER DISTRICT
EXISTING OTA)
.::-DAM MWD1IlI:l__··EXISTING"PADR~
~.
N
~'COO'SCALE:1 ;::,._
IPARCEL 'C'~
~I
/~L
........../ I
PROPOSED ~DBJ~~SERVICE AR
IGTAY WATER DISTRICT~
VoY(:<JT:PPl-08 TO:09:21
L_~=umOO4\:u:FcW;GijR~i-2 OWG 04-10FCO\FIGIJ~".\OWG\B21oo4\UI\\PAClFlC
ATTACHMENT B
AGENDA ITEM 11
STAFF REPORT
November 13,2008TYPE
MEETING:
SUBMITTED
BY:
SUBJECT:
Regular Board Meeting
Mark Watton,
General Manager
General Manager's Report
MEETING
DATE:
W.O./G.F.
NO:
N/A DIV.
NO.
N/A
GENERAL MANAGER:
FLAGSHIP PROJECTS:
Update on the design of the 36-Inch Potable Water Pipeline from
FCF #14 to Regulatory Site (CIP P2009)for the month of
September 2008:
•Lee &Ro submitted the 60%design plans for the alternative
alignment on September 23,2008.
•Staff is working on an agreement with the San Diego County
Water Authority to allow the District to make a temporary
reconnection from Flow Control Facility #14 (FCF)to the La
Mesa Sweetwater Extension (LMSE)to maintain service until
the 36-inch pipeline is connected.
•Project design is scheduled to finish December 2008 and the
project will be advertised for bid.Project award is
expected in March 2009.
Update on the 640-1 and 640-2 Reservoirs Project (CIP P2185)for
the month of September 2008:
•Asphalt paving of entire site is complete.
•The de-silting basin is 95%complete.
•Project schedule is 95%complete and projected to finish
December 2008.Project is on schedule and on budget.
ADMINISTRATIVE SERVICES,INFORMATION TECHNOLOGY AND FINANCE:
Administrative Services:
Human Resources:
•New Hires -There was one employee hired in the month of
October:a Customer Service Supervisor.
•Open Enrollment -The Open Enrollment period began on
October 27 th and ended on November 7th •During this
period,employees had an opportunity to make changes to
their benefit options for the 2009 plan year.Open
Enrollment meetings were held on October 29th and a
Health &Benefits Fair was held on November 6th to allow
employees the opportunity to learn about the various
benefits offered.
Purchasing:
•There were 151 purchase orders processed in October 2008
for a total amount of $576,208.38.
Safety &Security:
• A claim received from Mr.J.Parkeson Miller,1521 Shadow
Knolls Lane,El Cajon,CA 92020,was accepted and paid.
The claim dated August 25,2008,for $494.44 and an
unspec~fic amount for water loss,claimed that the
District was responsible for the repair of a leak at the
ball valve on the line supplying water to his property
and the water loss caused by the leak.After a review of
the claim by Water Operations Staff,it was determined
Mr.Miller should be reimbursed for repair costs and the
estimated water loss caused by the leak.Mr.Miller has
signed a settlement agreement and general release related
to his claim.Mr.Miller will be sent a check for
$494.44 for the cost of repairs and his account will be
credited $163.96 for water loss.
•Traffic Control Training -Completed the training of 48
employees on Traffic Control and the District's
procedures.
•Forklift Certification and Training -Training was
scheduled for November 4th and 6th for 26 District
employees.
2
•Statewide Emergency Preparedness Exercise Golden Guardian
-Coordinating with San Diego County Office of Emergency
Services (OES)and other agencies to participate in this
exercise on November 13,2008.
Water Conservation:
•Rotating Sprinkler Nozzle Class -Over 55 people attended
the rotating nozzle seminar for homeowners on October 11th
at the District offices.Staff received very positive
feedback regarding the class and is planning another
class in late February 2009.
•School Education Program -Five school garden tours were
conducted by the Garden in October.Tiffany and Avocado
Elementary schools had two tours each and Vista Grande
Elementary School walked to the Garden.A total of 174
students and 22 adults attended these tours.To date,17
Garden tours have been scheduled through the end of the
school year.
•California Friendly Gardening Festival -The District
helped organize and staff two water agency booths at the
event held on Saturday,October 25th •The District helped
publicize the event by sending out a bill insert for the
first four weeks of October specifically promoting the
Festival.Staff was also interviewed during a podcast
with Cyber-Rain,a vendor invited to highlight their
smart controller and activities at the Festival.Over
1,770 people attended the Festival despite the heat.
Phase Out of the Metropolitan Water District's Interim
Agricultural Water Program (IAWP)by 2013 -On October
14th ,the MET Board voted to phase out the IAWP over five
years.The District has notified its three IAWP
customers that they can opt out of the program if they
notify us before January 1,2009.CWA is working on a
possible discounted rate for agricultural customers,if
these customers are using water efficiently.Details on
this future program are expected to be worked on at the
October CWA Board meeting.
In£or.mation Techno~ogy and Strategic P~anning:
•IT Award -For the second year in a row,Otay Water
District's IT and Strategic Planning Department won the
highest award granted by the Municipal Information
3
Systems Association of California (MISAC).Otay is one
of 18 city and municipal government IT departments in
California and the only San Diego agency to receive the
"Excellence in IT Practices Award"for 2007-08.
•Strategic Plan FY 09-FY 11 -The first quarter Strategic
Plan results are due at the end of October 2008.
Consisting of 76 objectives and 44 performance measures,
this will give us our first checkpoint on progress on the
new plan.
•"Red Flag"Certification -IT is drafting a statement to
comply with the recent "Red Flag"certification for
identity theft required by the FTC.The deadline for
compliance is November 1st but no penalties for non-
compliance will be assessed until May 1,2009.
•AWWA Conference -Geoff Stevens and Rita Bell made a
presentation at the recent AWWA Conference in Reno.
Feedback was quite positive and Ota~demonstrated "live",
the considerable progress we have made in financial and
management reporting.
•Records Management -Staff is reviewing the records
retention schedule with all of the Chiefs to ensure that
all senior team members are comfortable with and
understand how records in their areas will be
categorized.We are finalizing the purchasing agreements
for the software and hardware,and continuing with the
scanning of the existing records in the Records room.A
detailed review at the Department level will be conducted
to ensure the new record process is comprehensive.
•GIS Update -IT has released the results of a study
identifying improvements necessary to achieve our field
mobile objectives.The study concludes that we need to
update and replace old hardware,change some architecture
issues to allow faster and more reliable connectivity,
modify software to allow work to continue even when the
unit is not directly connected to our network,add more
internal and external truck-mounts for hardware,and add
phone cameras to the equipment we issue at the
supervisory level.We have also upgraded our existing
software to a new release.
Wireless Infrastructure -IT has finalized agreements to
begin implementing wireless connectivity to the Treatment
Plant.This project will allow us to provide better
4
security to the plant and upgrade network capabilities.In
addition,we are exploring economical options for Cox
Communications to provide bandwidth to remote District
facilities.
Finance:
The financial reporting for September 30,2008 is as
follows:
•For the three months ended September 30,2008,there
are total revenues of $18,157,139 and total expenses
of $17,032,916.The revenues exceeded expenses by
$1,124,223.
The financial reporting for investments for September 30 I
2008 is as follows:
•The market value shown in the Portfolio Summary and in
the Investment Portfolio Details as of September 30,
2008 total $79,673,795.82 with an average yield to
maturity of 3.298%.The total earnings year-to-date
are $717,394.49.
ENGINEERING AND WATER OPERATIONS:
Engineering:
•850-4 Reservoir -RSH worked on installation of
underground water and storm drain piping.They will start
construction of the ring wall in December 2008.The
reservoir will provide for increased capacity in the 850
Pressure Zone,as required by the 2002 Water Resource
Master Plan.This project is expected to be completed in
May 2009.Project is on schedule and on budget.(P2191)
•l2-Inch Pipeline (Three Amigas)Projects -This project
consists of upgrading and replacing existing 12-inch
pipelines in the Rancho San Diego area because of the
size,age,and the need for increased fire flows.These
areas include Chase Ave./Fuerte Ave.,Hidden Mesa Rd.,
Jamul Dr.,and Steele Canyon Rd.Arrieta Construction
completed pipeline construction on all of the
aforementioned streets.The paving is complete on Jamul
Dr.and Hidden Mesa Rd.This project is expected to be
completed in January 2009.This project is on schedule
and on budget.(P2038)
5
•20-Inch Recycled Pipeline Conversion -ARB,Inc.(ARB)
continues with the conversion of a 20-inch potable
pipeline to a recycled pipeline in Chula Vista within the
District's use area.Staff has been negotiating with ARB
concerning costs of changes to the contract.ARB
performed no work while waiting for a different meter.
Project is 90%complete.This project is expected to be
completed in February 2009.This project is on schedule
and on budget.(R2081)
•Calavo Sewer Lift Station -NEWest Construction continues
with the replacement of the Calavo Sewer Lift Station.
Staff received and reviewed the proposal from SDG&E for
the design of the electric service to the lift station.
This project is expected to be completed by December 31,
2008.This project is on schedule and on budget.
(S2015)
•Water Resources Master Plan (WRMP)-PBS&J is continuing
to test the models for the potable and recycled water
systems in an effort to discover and correct any
anomalies.They are continuing to compile the list of
projects for the future CIP and are working on the
Program Environmental Impact Report (PEIR)for the Plan.
This project is expected to be completed by June 30,
2009.(P1210)
•Utility Agreement Reimbursements -Staff is coordinating
with Caltrans on utility agreement reimbursements to the
District for the SR-905 and SR-125 highways.The
reimbursements for the construction of SR-905 are at
seven separate crossings.The construction work for
which the District is responsible is complete.Caltrans
construction is in progress.The District will
potentially receive reimbursements of up to approximately
$850,000 during FY2009.The reimbursements for SR-125
are for the utility relocations along SR-125 at eight
separate locations.Construction is complete and the
District anticipates receiving reimbursements of up to
$450,000 during FY 09.Staff is processing six utility
amendments for utility agreements and submit for Board
approval in October and November 2008.(P2440/P2416)
•North District Recycled Water Concept Study -PBS&J is
working on the draft final report which will be submitted
to staff for review in early October 2008.A meeting to
discuss the Study results was held with Regional Water
Quality Control Board (RWQCB)staff on September 25,
6
2008.RWQCB staff is particularly interested in what the
impacts might be to the groundwater by the use of
recycled water in this area and they are concerned about
the nitrogen levels in the recycled water.Operations
staff is working on optimization of the treatment process
to reduce the nitrogen levels in the effluent.
•San Miguel Habitat Management Area (HMA)Update -The
remainder of the fire-damaged eucalyptus trees were
removed during the month of September 2008 from the HMA.
This removal was delayed because of the nesting birds in
the trees in the Sprinq.It was necessary to wait until
the end of the migratory bird nesting season to remove
the remainder of the trees.This tree removal is being
partially reimbursed through FEMA.Staff is working with
our HMA management and maintenance contractor,IFC Jones
&Stokes,and the Salt Creek Golf Course staff to remove
invasive plant species that are growing within the golf
course and threaten to spread into the HMA.A Request
for Proposal (RFP)will be going out in October for the
HMA management and maintenance contract with contract
award scheduled for January 2009.
•The United States Department of Interior,Bureau of
Reclamation,informed District Staff that they will
provide a Title XVI Cooperative Agreement grant payment
of $1,195,000 for recycled water facilities,for their
fiscal year ending September 30,2008.The money was
unanticipated by the District and not a part of the
budget.The funds are hence unexpected additional
income.
•For the month of September 2008,the District sold 17
meters (86 EDUs)generating $397,712 in revenue.
Accumulated revenue through September 30,2008 was
$599,846 for 122.5 EDUs and 25 meters.Projection for
this period was 84 meters (129.9 EDUs)with a budgeted
revenue of $710,510.Projected revenue from July 1,2008
through June 30,2009 is $2,840,600.
•Approximately 2,432 linear feet of both CIP and developer
project pipeline was installed in September 2008.The
Construction Division performed quality control for these
pipelines.
•The following table summarizes Engineering's Project
purchases and change orders issued during the period of
September 1,2008 thru September 30,2008 that were
within Staff signatory authority:
7
Contractor/
Date Action Amount Consultant Project
Check Calavo Sewer Pump Station
9/3/08 Request $6,505.00 SDG&E Relocation of underground
electric service (S2015)
9/3/08 P.O.$4,995.34 Lee &Ro As-Needed Engineering
707606 Design Svcs
Consultant Svcs for 36-
9/17/08 Check $2,500.00 Swinerton Inch Pipeline SDCWA Otay
Request FCF #14 to Regulatory Site
(P2009)
9/17/08 P.o.$1,192.91 Mayer Interagency Water Meter
708786 Reprographics Connections (P2422)
Telliard Reclamation Plant Office
9/19/08 c.o.#2 $5,216.69 Construction Bldg &Recycled Water
Operators Offices (R2 053)
9/24/08 P.O.$3,095.17 Mayer 1485-1 Pump Station
Reprographics (P2172)
Water qperations:
•Per a request from Mexico,on October 15,2008 District
staff increased the deliveries to 11.6 MGD to assist
CESPT on a major pipeline repair.This increased flow
lasted until October 18,2008 and resulted in meeting the
requested total volume for the month to be met earlier.
Consequently,the connection was shut down on Monday,
October 27,2008.
•Potable water purchased for the third month of FY 09,
September,2008,was 4311.2 acre-feet.To date for FY 09
there has been 12448.9 acre-feet of water purchased.This
is a -2.42 percent decrease from the same period last
year.
•In the month of September 2008 there were 10 new
Automated Meter Reading (AMR)meters installed and 131
meters were retrofitted to AMR meters.
•As of October 1,2008 there was a total of 18,490 3-G
Master Meter radio read units installed.The figure of
18,490 is not correlating with the previous figures
reported in last month's report.Operations staff,in
conjunction with IT staff,identified three items within
Inforum Gold that should correct the problem in the
future.
8
Total number of potable water accounts is 47,904;this is
a decrease of three accounts from last month,August
2008.
•Recycled water consumption for the month of September
2008 is as follows:
Total flow was 609.8 acre-feet or 198,641,124 gallons and
the average daily flow was 6,621,371 gallons per day.
Total number of recycled water accounts is 623;this is
an increase of one from last month,August 2008.
Total recycled water consumption to date for FY 09 is
1829.8 acre-feet.
•Wastewater flows for the month of September 2008 were as
follows:
•
•
•
•
•
Total basin flow,gallons per day:2,036,000.
Spring Valley Sanitation District Flow to Metro,
gallons per day:676,000.
Total Otay flow,gallons per day:1,361,000.
Flow Processed at the Ralph W.Chapman Water Recycling
Facility,gallons per day:1,106,000.
Flow to Metro from Otay Water District,gallons per
day:254,000.
cteneral Manager
G:\UserData\DistSec\WINWORD\STAFRPTS\GM Report 11-13-08.doc
9
AGENDA ITEM 11
Exhibit A
OTAY WATER DISTRICT
COMPARATIVE BUDGET SUMMARY
FOR THREE MONTHS ENDED SEPTEMBER 30,2008
Annual YTD YTD YTD
Budget Actual Budget Variance Var%
REVENUE:
Water Sales $32,836,500 $9,962,560 $10,078,600 $(116,040)(1.2%)
Energy Charges 2,047,100 609,179 625,200 (16,021)(2.6%)
System Charges 10,619,400 2,551,724 2,522,300 29,424 1.2%
Penalties 906,900 196,707 252,900 (56,193)(22.2%)
MWD &CWA Fixed Charges 2,819,500 669,705 663,100 6,605 1.0%
Total Water Sales 49,229,400 13,989,876 14,142,100 (152,224)(1.1%)
Reclamation Sales 6,344,500 2,279,895 2,126,200 153,695 7.2%
Sewer Charges 2,145,300 548,420 535,500 12,920 2.4%
Meter Fees 103,800 25,436 25,950 (514)(2.0%)
Capacity Fee Revenues 1,301,900 350,109 325,500 24,609 7.6%
Betterment Fees for Maintenance 895,900 184,500 224,000 (39,500)(17.6%)
Annexation Fees 483,600 41,773 120,900 (79,127)(65.4%)
Non-Operating Revenues 1,633,100 482,716 359,450 123,266 34.3%
Tax Revenues 4,137,300 114,546 113,400 1,146 1.0%
Interest 667,800 109,868 105,000 4,868 4.6%
General Fund Draw Down 120,100 30,000 30,000 0.0%
Total Revenue $67,062,700 $18,157,139 $18,108,000 $49,139 0.3%
EXPENSES:
Potable Water Purchases $25,183,600 $7,232,981 $7,374,200 $141,219 1.9%
Recycled Water Purchases 1,490,800 527,849 575,800 47,951 8.3%
CWA-Infrastructure Access Charge 1,227,500 287,334 287,400 66 0.0%
CWA-Customer Service Charge 1,049,800 254,550 254,700 150 0.1%
CWA-Emergency Storage Charge 1,774,700 434,124 434,100 (24)(0.0%)
MWD-Capacity Res Charge 602,800 148,932 148,800 (132)(0.1%)
MWD-Readiness to Serve Charge 665,100 166,272 166,200 (72)(0.0%)
Subtotal Water Purchases 31,994,300 9,052,042 9,241,200 189,158 2.0%
Power Charges 2,780,500 847,426 858,700 11,274 1.3%
Payroll &Related Costs 17,185,400 3,795,871 4,028,910 233,039 5.8%
Material &Maintenance 3,872,800 810,351 913,200 102,849 11.3%
Administrative Expenses 5,467,600 1,072,682 1,193,700 121,019 10.1%
Legal Fees 467,500 130,843 116,875 (13,968)(12.0%)
Expansion Reserve 5,016,700 1,254,200 1,254,200 0.0%
Replacement Reserve 277,900 69,500 69,500 0.0%
Total Expenses $67,062,700 $17,032,916 $17,676,285 $643,369 3.6%
Excess Revenue (Expense)$$1,124,223 $431,715 $692,508
F:lMORPT/FS2009-0908 11/3/2008 1:58 PM
OTAY WATER DISTRICT
INVESTMENT PORTFOLIO REVIEW
SEPTEMBER 30,2008
INVESTMENT OVERVIEW &MARKET STATUS:
On October 8th,the Federal Reserve Board's federal funds rate was once again lowered from 2.00%to 1.50%.The change was
implemented as a result of an unscheduled,emergency meeting ofthe Reserve Board in response to the nation's ongoing financial
crisis,as well as banking industry pressure to ease credit and stimulate the economy.This was the seventh reduction in a row since
September 18,2007,when the rate was 5.25%.The next Reserve Board meeting is scheduled for October 29th,and there is currently a
strong expectation that the rate will be lowered another 0.25%-0.50%at that time.Despite the large drop in available interest rates,
the District's overall effective rate ofreturn on at September 30th was 3.36%.At the same time the LAIF return on deposits has also
dropped over the last several months,reaching an average effective yield of2.77%for the month of September.Based on our success
at maintaining a competitive rate ofreturn on our portfolio during this extended period ofinterest 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:September 30,2008
Investment
8.01:Treasury Securities
8.02:Local Agency Investment Fund (Operations)
8.02:Local Agency Investment Fund (Bonds)
8.03:Federal Agency Issues
8.04:Certificates ofDeposit
8.05:Short-Term Commercial Notes
8.06:Medium-Term Commercial Debt
8.07:Money Market Mutual Funds
8.08:San Diego County Pool
12.0:Maximum Single Financial Institution
State Limit
100%
$40 Million
100%
100%
30%
25%
30%
20%
100%
100%
Otay Limit
100%
$40 Million
100%
100%
15%
15%
15%
15%
100%
50%
OtayActual
o
$11.42 Million
1.82%
59.87%
1.35%
o
2.51%
o
15.38%
4.75%
Performance Measure F-12
Return on Investment
I'Target:Meet or Exceed 1000/0 of LAIF
6.00 -',------------------------------,
------------------------
-----------
4.00---
5.00 -
3.00 -
2.00 '---
0.00
1.00--
-1.00 ----------------
-2.00 -1..--.__-,--__--,-__---;-,----;-:----,----.-----,-----1
11stQtr2ndQtr3rdQtri4thQtrSept1stQtrI
l••--__,Qt~y,__1-:-:-~8--:~:8 ::oO~r::098 J Jul3:09 IAU~:091 _::0;I ::¥--i
i_LAIF I 5.24 4.96.4.18 I 3y ll 2.79 ~2.78 2.77 L 2.78 -Jl~Differen-ceT 0.04 0.01 ~-t9-.:12 t--0.48 1 -0.67 I ~6-1 -0.59 I -0.62 I
Month
~------------------_.
Otay •LAIF D Difference -Linear ,(Difference),
tn....c
(1)
E....tn(1)>c-co
c-:J....(1)a:
--------
62.39%
Otay Water District
Investment Portfolio:09/30/08
6.10%
o Banks (Passbook/Checking/CD)•Pools (LAIF &County)0 Agencies &Corporate Notes
OTAY
Portfolio Management
Portfolio Summary
September 30,2008
Investments
Corporate Notes
Federal Agency Issues-Callable
Certificates of Deposit -Bank
Local Agency Investment Fund (LAIF)
San Diego County Pool
Investments
Par Market Book:%of Days to YTM YTM
Value Value Value Portfolio Term Maturity 360 Equiv.365 Equiv.
2,000,000.00 1,932,067.87 2,024,033.97 2.66 1,111 791 4.340 4.401
47,799,100.00 47,688,913.18 47,798,292.44 62.84 927 749 3.403 3.450
1,079,108.00 1,079,108.00 1,079,108.00 1.42 393 103 4.728 4.793
12,882,037.08 12,870,928.85 12,882,037.08 16.94 1 1 2.736 2.774
12,282,129.87 12,312,552.05 12,282,129.87 16.15 1 1 3.181 3.225
76,042,374.95 75,883,569.95 76,065,601.36 100.00%618 493 3.298 3.344
Cash
Passbook/Checking
(not included in yield calculations)
Total Cash and Investments
Total Earnings
Current Year
Average Daily Balance
Effective Rate of Return
3,790,225.87
79,832,600.82
September 30 Month Ending
223,684.81
80,896,125.69
3.36%
3,790,225.87
79,673,795.82
Fiscal Year To Date
717,394.49
83,655,225.98
3.40%
3,790,225.87
79,855,827.23 618 493
0.876
3.298
0.888
3.344
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 January 19,2000.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.
~/I2-/L;;C~JO~ePh B I:ierfi,efFinancia.1 0 r
Run Date:10/21/2008-10:35
Portfolio OTAY
AP
PM (PRF]M1)SymRept6.41.200
ReportVeL 5.00
OTAY
Portfolio Management Page 2
Portfolio Details -Investments
September 30,2008
Average Purchase Stated YTM Days to Maturity
CUSIP Investment#Issuer Balance Date ParValue Market Value BookValue Rate Moody's 360 Maturity Date
Corporate Notes
36962G2S2 2044 General ElectricCapital 11/16/2007 2,000,000.00 1,932,067.87 2,024,033.97 5.000 Aaa 4.340 791 12/01/2010
Subtotal and Average 2,024,480.76 2,000,000.00 1,932,067.87 2,024,033.97 4.340 791
Federal Agency Issues-Callable
31398AMX7 2064 FANNIE MAE 0212212008 2,000,000.00 1,990,625.00 2,000,000.00 3.000 2.959 506 02/19/2010
31331YB74 2073 Federal Farm Credit Bank 04/07/2008 2,000,000.00 1,981,250.00 2,000,000.00 3.180 3.136 918 04/07/2011
3133XNS42 2058 Federal Home Loan Bank 12/18/2007 2,000,000.00 2,005,625.00 2,000,000.00 4.250 4.192 625 06/18/2010
3133XNPR4 2059 Federal Home Loan Bank 12/24/2007 1,800,000.00 1,805,625.00 1,800,000.00 4.350 4.290 814 12/24/2010
3133XPDR2 2062 Federal Home Loan Bank 01/30/2008 2,000,000.00 1,994,375.00 2,000,000.00 3.060 3.018 485 01/29/2010
3133XPDSO 2063 Federal Home Loan Bank 01/30/2008 2,000,000.00 1,995,625.00 2,000,000.00 3.250 3.205 667 07/30/2010
3133XPWL4 2065 Federal HomeLoan Bank 02126/2008 2,000,000.00 1,991,250.00 2,000,000.00 3.000 2.959 513 02126/2010
3133XPX90 2067 Federal Home Loan Bank 03/05/2008 2,000,000.00 1,991,875.00 2,000,000.00 3.020 2.979 520 03/05/2010
3133XQC91 2070 Federal Home Loan Bank 03/17/2008 2,000,000.00 1,988,125.00 2,000,000.00 3.125 3.081 807 12117/2010
3133XQF23 2071 Federal Home Loan Bank 03/25/2008 2,000,000.00 1,983,125.00 2,000,000.00 3.250 3.205 905 03/25/2011
3133XQJ78 2072 Federal Home Loan Bank 04/14/2008 2,000,000.00 1,982,500.00 2,000,000.00 3.150 3.107 925 04/14/2011
3133XQMC3 2074 Federal Home Loan Bank 04/14/2008 2,000,000.00 1,982,500.00 2,000,000.00 2.900 2.860 743 10/14/2010
3133XQUX8 2075 Federal Home Loan Bank 04/29/2008 2,000,000.00 1,989,375.00 2,000,000.00 3.100 3.058 758 10/29/2010
3133XRNM8 2083 Federal Home Loan Bank 06/30/2008 2,000,000.00 2,005,000.00 2,000,000.00 3.650 3.598 545 03/30/2010
3133XRK74 2084 Federal Home Loan Bank 06/30/2008 2,000,000.00 2,002,500.00 2,000,000.00 3.500 3.452 455 12/30/2009
3128X7TT1 2079 Federal Home Loan Mortgage 06/02/2008 2,000,000.00 2,000,288.09 2,000,000.00 3.625 3.575 974 06/0212011
3128X7YG3 2082 Federal Home Loan Mortgage 06/26/2008 2,000,000.00 2,007,645.87 2,000,000.00 4.750 4.685 1,729 06/26/2013
31398AKSO 2060 Federal National MortageAssoc 01/07/2008 2,000,000.00 2,007,500.00 2,000,000.00 4.500 4.438 828 01/07/2011
31398ANH1 2069 Federal National MortageAssoc 03/10/2008 2,000,000.00 1,988,750.00 2,000,000.00 3.250 3.205 877 02/25/2011
3136F9LP6 2076 Federal National MortageAssoc 04/28/2008 1,999,100.00 1,989,729.22 1,999,100.00 3.000 2.959 574 04/28/2010
3136F9NB5 2077 Federal National MortageAssoc 05/12/2008 2,000,000.00 1,990,000.00 2,000,000.00 3.100 3.058 588 05/1212010
31398ARD6 2078 Federal National MortageAssoc 05/19/2008 2,000,000.00 2,001,250.00 1,999,192.44 3.600 3.570 960 05/19/2011
3136F9SA2 2080 Federal National MortageAssoc 06/10/2008 2,000,000.00 1,999,375.00 2,000,000.00 3.265 3.220 617 06/10/2010
3136F9WV1 2085 Federal National MortageAssoc 07/0212008 2,000,000.00 2,015,000.00 2,000,000.00 4.000 3.945 639 07/02/2010
Subtotal and Average 50,591,946.76 47,799,100.00 47,688,913.18 47,798,292.44 3.403 749
Certificates ofDeposit -Bank
205003183 2066 California Bank &Trust 01/22/2008 79,108.00 79,108.00 79,108.00 3.180 3.180 478 01/22/2010
1002812475 2061 Neighborhood National Bank 12113/2007 1,000,000.00 1,000,000.00 1,000,000.00 4.850 4.850 73 12/13/2008
SubtotalandAverage 1,079,108.00 1,079,108.00 1,079,108.00 1,079,108.00 4.728 103
Portfolio OTAY
AP
Run Date:10/21/2008 -10:35 PM (PRF]M2)SymRept 6.41.200
Report Ver.5.00
OlAY
Portfolio Management
Portfolio Details -Investments
September 30,2008
Page 3
Average Purchase Stated YTM Days to Maturity
CUSIP Investment#Issuer Balance Date Par Value MarketValue BookValue Rate Moody's 360 Maturity Date
Local Agency Investment Fund (LAIF)
LAIF 9001 STATE OF CALIFORNIA 07/01/2004 11,431,285.51 11,421,428.27 11,431,285.51 2.774 2.736
LAIF COPS07 9009 STATE OF CALIFORNIA 03/07/2007 1,450,751.57 1,449,500.58 1,450,751.57 2.774 2.736
Subtotal and Average 13,258,703.75 12,882,037.08 12,870,928.85 12,882,037.08 2.736
San Diego County Pool
SD COUNTY POOL 9007 San Diego County 07/01/2004 12,282,129.87 12,312,552.05 12,282,129.87 3.225 3.181
Subtotal andAverage 12,282,129.87 12,282,129.87 12,312,552.05 12,282,129.87 3.181
Total and Average 80,896,125.69 76,042,374.95 75,883,569.95 76,065,601.36 3.298 493
Run Date:10/21/2008 -10:35
Portfolio OTAY
AP
PM (PRF_PM2)SymRepl 6.41.200
OlAY
Portfolio Management
Portfolio Details -Cash
September 30,2008
Average Purchase
CUSIP Investment #Issuer Balance Date ParValue
Union Bank
UNION MONEY 9002 STATE OF CALIFORNIA 07/01/2004 2,028,263.94
PETTY CASH 9003 STATE OF CALIFORNIA 07/01/2004 2,800.00
UNION OPERATING 9004 STATE OF CALIFORNIA 07/01/2004 1,734,484.67
PAYROLL 9005 STATE OF CALIFORNIA 07/01/2004 24,677.26
UNION IOC 9008 STATE OF CALIFORNIA 05/01/2006 0.00
Average Balance 0.00
Total Cash and Investmentss 80,896,125.69 79,832,600.82
Run Date:10/21/2008-10:35
Market Value
2,028,263.94
2,800.00
1,734,484.67
24,677.26
0.00
79,673,795.82
Page 4
Stated YTM Days to
BookValue Rate Moody's 360 Maturity
2,028,263.94 0.200 0.197
2,800.00 0.000
1,734,484.67 1.706 1.683
24,677.26 0.000
0.00 4.500 4.438
79,855,827.23 3.298 493
Portfolio OTAY
AP
PM (PRF_PM2)SymRepl6.41.200
OTAY
Activity Report
Sorted By Issuer
July 1,2008 -September 30,2008
CUSIP Investment #Issuer
Percent
ofPortfolio
Par Value.............................._._..-
Beginning
Balance
Current Transaction
Rate Date
Purchases or
Deposits
Par Value..'..-.---,---.----.
Redemptions or
Withdrawals
Ending
Balance
Issuer:STATE OF CALIFORNIA
Subtotal and Balance
Subtotal and Balance
IssuerSubtotal 20.884%
Local Agency Investment Fund (LAIF)
LAIF 9001 STATE OF CALIFORNIA
LAIF COPS07 9009 STATE OF CALIFORNIA
3,790,225.87
16,672,262.95
12,882,037.08
0.200 20,385,946.03 18,367,699.02
1.706 1,110,897.07 918,820.43
300.00 0.00
1,579,602.22 21,497,143.10 19,286,519.45
2.774 17,142,803.72 16,500,000.00
2.774 11,096.79 0.00
12,228,136.57 17,153,900.51 16,500,000.00
13,807,738.79 38,651,043.61 35,786,519.45
STATE OF CALIFORNIA
STATE OF CALIFORNIA
STATE OF CALIFORNIA
Union Bank
UNION MONEY 9002
UNION OPERATING 9004
PAYROLL 9005
Issuer:California Bank &Trust
Certificates of Deposit-Bank
Subtotaland Balance 79,108.00 79,108.00
IssuerSubtotal 0.099%79,108.00 0.00 0.00 79,108.00
Issuer:FANNIE MAE
Federal Agency Issues-Callable
Subtotal and Balance 2,000,000.00 2,000,000.00
IssuerSubtotal 2.505%2,000,000.00 0.00 0.00 2,000,000.00
Issuer:Federal Farm Credit Bank
Federal Agency Issues-Callable
Subtotal and Balance 2,000,000.00 2,000,000.00
Run Date:10/21/2008 -10:36
Portfolio OTAY
AP
DA(PRF_DA)SymRept 6.41.200
Report Ver.5.00
OTAY
Activity Report Page 2
July 1,2008 -September 30,2008
ParValue Par Value
Percent Beginning Current Transaction Purchases or Redemptions or Ending
CUSIP Investment#Issuer ofPortfolio Balance Rate Date Deposits Withdrawals Balance
IssuerSubtotal 2.505%2,000,000.00 0.00 0.00 2,000,000.00
Issuer:Federal Home Loan Bank
Federal Agency Issues-Callable
3133XLTL7 2037 Federal Home Loan Bank 5.550 07/30/2008 0.00 3,000,000.00
3133XMX71 2042 Federal Home Loan Bank 4.500 08/14/2008 0.00 2,000,000.00
3133XN6X2 2045 Federal Home Loan Bank 4.500 08/20/2008 0.00 2,000,000.00
3133XNP52 2057 Federal Home Loan Bank 4.375 09/17/2008 0.00 2,000,000.00
3133XPZN7 2068 Federal Home Loan Bank 3.350 09/03/2008 0.00 1,905,000.00
Subtotal and Balance 36,705,000.00 0.00 10,905,000.00 25,800,000.00
IssuerSubtotal 32.318%36,705,000.00 0.00 10,905,000.00 25,800,000.00
Issuer:Federal Home Loan Mortgage
Federal Agency Issues-Callable
Subtotal and Balance 4,000,000.00 4,000,000.00
IssuerSubtotal 5.010%4,000,000.00 0.00 0.00 4,000,000.00
Issuer:Federal National Mortage Assoc
Federal Agency Issues-Callable
3136F9TS2 2081 Federal National Mortage Assoc 3.500 09/25/2008 0.00 2,000,000.00
3136F9WV1 2085 Federal National Mortage Assoc 4.000 07/0212008 2,000,000.00 0.00
Subtotal and Balance 13,999,100.00 2,000,000.00 2,000,000.00 13,999,100.00
IssuerSubtotal 17.536%13,999,100.00 2,000,000.00 2,000,000.00 13,999,100.00
Issuer:General Electric Capital
Corporate Notes
Subtotal and Balance 2,000,000.00 2,000,000.00
Issuer Subtotal 2.505%2,000,000.00 0.00 0.00 2,000,000.00
Issuer:Neighborhood National Bank
Run Date:10/21/2008-10:36
Portfolio OTAY
AP
DA (PRF_DA)SymRept6.41.200
ReportVer.5.00
OTAY
Activity Report Page 3
July 1,2008 -September 30,2008
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:Neighborhood National Bank
Certificates of Deposit -Bank
Subtotal and Balance 1,000,000.00 1,000,000.00
Issuer Subtotal 1.253%1,000,000.00 0.00 0.00 1,000,000.00
Issuer:San Diego County
San Diego County Pool
SO COUNTY POOL 9007 San Diego County 3.225 105,030.38 0.00
Subtotal and Balance 12,177,099.49 105,030.38 0.00 12,282,129.87
Issuer Subtotal 15.385%12,177,099.49 105,030.38 0.00 12,282,129.87
Total 100.000%87,768,046.28 40,756,073.99 48,691,519.45 79,832,600.82
Run Date:1012112008 -10:36
Portfolio OTAY
AP
DA(PRF_DA)SymRept6.41.200
ReportVer.5.00
OTAY
GASS 31 Compliance Detail
Sorted by Fund -Investment Class
July 1,2008 -September 30,2008
Adjustmentin 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 10,787,944.73 0.00 142,803.72 142,803.72 0.00 -9,320.18 11 ,421,428.27
LAIFCOPS07 9009 99 Fair Value 1,439,583.11 0.00 11,096.79 0.00 0.00 -1,179.32 1,449,500.58
UNION MONEY 9002 99 Amortized 10,016.93 0.00 32.28 32.28 0.00 0.00 2,028,263.94
PETTY CASH 9003 99 Amortized 2,800.00 0.00 0.00 0.00 0.00 0.00 2,800.00
UNION OPERATING 9004 99 Amortized 1,542,408.03 0.00 5,311.00 5,311.00 0.00 0.00 1,734,484.67
PAYROLL 9005 99 Amortized 24,377.26 0.00 0.00 0.00 0.00 0.00 24,677.26
UNION IOC 9008 99 Amortized 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1002812475 2061 99 Amortized 12/13/2008 1,000,000.00 0.00 0.00 0.00 0.00 0.00 1,000,000.00
205003183 2066 99 Amortized 01/2212010 79,108.00 0.00 0.00 0.00 0.00 0.00 79,108.00
SO COUNTY POOL 9007 99 FairValue 12,219,100.73 0.00 105,030.38 0.00 0.00 -11,579.06 12,312,552.05
3133XLTL7 2037 99 FairValue 07/30/2010 3,006,562.50 0.00 0.00 3,000,000.00 0.00 -6,562.50 0.00
3133XMX71 2042 99 FairValue 08/14/2009 2,004,375.00 0.00 0.00 2,000,000.00 0.00 -4,375.00 0.00
36962G2S2 2044 99 FairValue 12101/2010 2,051,704.10 0.00 0.00 0.00 0.00 -119,636.23 1,932,067.87
3133XN6X2 2045 99 FairValue 08/20/2010 2,004,375.00 0.00 0.00 2,000,000.00 0.00 -4,375.00 0.00
3133XNP52 2057 99 FairValue 09/17/2010 2,006,250.00 0.00 0.00 2,000,000.00 0.00 -6,250.00 0.00
3133XNS42 2058 99 Fair Value 06/18/2010 2,011,250.00 0.00 0.00 0.00 0.00 -5,625.00 2,005,625.00
3133XNPR4 2059 99 Fair Value 12/24/2010 1,810,687.50 0.00 0.00 0.00 0.00 -5,062.50 1,805,625.00
31398AKSO 2060 99 Fair Value 01/07/2011 2,012,500.00 0.00 0.00 0.00 0.00 -5,000.00 2,007,500.00
3133XPDR2 2062 99 Fair Value 01/29/2010 2,000,000.00 0.00 0.00 0.00 0.00 -5,625.00 1,994,375.00
3133XPDSO 2063 99 Fair Value 07/30/2010 1,997,500.00 0.00 0.00 0.00 0.00 -1,875.00 1,995,625.00
31398AMX7 2064 99 Fair Value 02/19/2010 1,998,125.00 0.00 0.00 0.00 0.00 -7,500.00 1,990,625.00
3133XPWL4 2065 99 Fair Value 02126/2010 1,996,875.00 0.00 0.00 0.00 0.00 -5,625.00 1,991,250.00
3133XPX90 2067 99 Fair Value 03/05/2010 1,997,500.00 0.00 0.00 0.00 0.00 -5,625.00 1,991,875.00
3133XPZN7 2068 99 Fair Value 09/03/2010 1,905,000.00 0.00 0.00 1,905,000.00 0.00 0.00 0.00
31398ANH1 2069 99 Fair Value 02125/2011 1,988,125.00 0.00 0.00 0.00 0.00 625.00 1,988,750.00
3133XQC91 2070 99 FairValue 12117/2010 1,985,625.00 0.00 0.00 0.00 0.00 2,500.00 1,988,125.00
3133XQF23 2071 99 FairValue 03/25/2011 1,983,125.00 0.00 0.00 0.00 0.00 0.00 1,983,125.00
3133XQJ78 2072 99 FairValue 04/14/2011 1,965,625.00 0.00 0.00 0.00 0.00 16,875.00 1,982,500.00
31331YB74 2073 99 FairValue 04/07/2011 1,979,375.00 0.00 0.00 0.00 0.00 1,875.00 1,98'1,250.00
3133XQMC3 2074 99 Fair Value 10/14/2010 1,980,000.00 0.00 0.00 0.00 0.00 2,500.00 1,982,500.00
Portfolio OTAY
AP
Run Date:10/21/2008 -10:37 GO (PRF_GO)SymRept 6.41.200
Report Ver.5.00
·f
OTAY
GASS 31 Compliance Detail Page 2
Sorted by Fund -InvestmentClass
Adjustment in Value
Investment Maturity Beginning Purchase Addition Redemption Amortization Change in Ending
CUSIP Investment #Fund Class Date Invested Value of Principal to Principal ofPrincipal Adjustment MarketValue Invested Value
Fund:Treasury Fund
3133XQUX8 2075 99 FairValue 10/29/2010 1,987,500.00 0.00 0.00 0.00 0.00 1,875.00 1,989,375.00
3136F9LP6 2076 99 FairValue 04/28/2010 1,993,477.53 0.00 0.00 0.00 0.00 -3,748.31 1,989,729.22
3136F9NB5 2077 99 FairVaiue 05/1212010 1,991,875.00 0.00 0.00 0.00 0.00 -1,875.00 1,990,000.00
31398ARD6 2078 99 FairValue 05/19/2011 1,997,500.00 0.00 0.00 0.00 0.00 3,750.00 2,001,250.00
3128X7TT1 2079 99 FairValue 06/02/2011 1,997,510.07 0.00 0.00 0.00 0.00 2,778.02 2,000,288.09
3136F9SA2 2080 99 FairValue 06/10/2010 2,000,625.00 0.00 0.00 0.00 0.00 -1,250.00 1,999,375.00
3136F9TS2 2081 99 Fair Value 06/25/2010 2,003,125.00 0.00 0.00 2,000,000.00 0.00 -3,125.00 0.00
3128X7YG3 2082 99 Fair Value 06/26/2013 2,006,940.00 0.00 0.00 0.00 0.00 705.87 2,007,645.87
3133XRNM8 2083 99 Fair Value 03/30/2010 2,011,250.00 0.00 0.00 0.00 0.00 -6,250.00 2,005,000.00
3133XRK74 2084 99 Fair Value 12130/2009 2,008,125.00 0.00 0.00 0.00 0.00 -5,625.00 2,002,500.00
3136F9WV1 2085 99 FairVaiue 07/0212010 0.00 2,000,000.00 0.00 0.00 0.00 15,000.00 2,015,000.00
Subtotal 87,787,845.49 2,000,000.00 264,274.17 13,053,147.00 0.00 -178,604.21 79,673,795.82
Total 87,787,845.49 2,000,000.00 264,274.17 13,053,147.00 0.00 -178,604.21 79,673,795.82
Portfolio OTAY
AP
Run Date:1012112008 -10:37 GD (PRF_GD)SymRept 6.41.200
ReportVer.5.00
OTAY
Duration Report
Sorted by Investment Type -Investment Type
Through 09/30/2008
Investment Book Par Market Current YTM Current Maturity/Effective
Security ID Investment#Fund Issuer Class Value Value Value Rate 365 Yield Call Date Duration
36962G2S2 2044 99 General Electric Capital Fair 2,024,033.97 2,000,000.00 1,932,067.87 5.000 4.401 6.715 12101/2010 1.978
3133XNS42 2058 99 Federal Home Loan Bank Fair 2,000,000.00 2,000,000.00 2,005,625.00 4.250 4.250 3.677c 12/18/2008 0.213
3133XNPR4 2059 99 Federal Home Loan Bank Fair 1,800,000.00 1,800,000.00 1,805,625.00 4.350 4.350 3.713c 12124/2008 0.230
3133XPDR2 2062 99 Federal Home Loan Bank Fair 2,000,000.00 2,000,000.00 1,994,375.00 3.060 3.060 3.633c 01/29/2009 0.328
3133XQJ78 2072 99 Federal Home Loan Bank Fair 2,000,000.00 2,000,000.00 1,982,500.00 3.150 3.150 4.825c 04/14/2009 0.516
3133XPDSO 2063 99 Federal Home Loan Bank Fair 2,000,000.00 2,000,000.00 1,995,625.00 3.250 3.250 3.696c 01/30/2009 0.331
3133XQC91 2070 99 Federal Home Loan Bank Fair 2,000,000.00 2,000,000.00 1,988,125.00 3.125 3.124 4.338c 12117/2008 0.210
31331YB74 2073 99 Federal Farm Credit Bank Fair 2,000,000.00 2,000,000.00 1,981,250.00 3.180 3.180 5.042c 04/07/2009 0.496
31398AMX7 2064 99 FANNIE MAE Fair 2,000,000.00 2,000,000.00 1,990,625.00 3.000 3.000 3.956c 02119/2009 0.386
3133XPX90 2067 99 Federal Home Loan Bank Fair 2,000,000.00 2,000,000.00 1,991,875.00 3.020 3.020 3.848c 03/05/2009 0.424
3133XPWL4 2065 99 Federal Home Loan Bank Fair 2,000,000.00 2,000,000.00 1,991,250.00 3.000 3.000 3.892c 02/26/2009 0.405
3128X7TT1 2079 99 Federal HomeLoan Mortgage Fair 2,000,000.00 2,000,000.00 2,000,288.09 3.625 3.625 3.608c 06/02/2009 0.648
3133XQF23 2071 99 Federal HomeLoan Bank Fair 2,000,000.00 2,000,000.00 1,983,125.00 3.250 3.250 4.980c 03/25/2009 0.479
3136F9LP6 2076 99 Federal National Mortage Assoc Fair 1,999,100.00 1,999,100.00 1,989,729.22 3.000 3.000 3.835c 04/28/2009 0.556
3136F9NB5 2077 99 Federal National Mortage Assoc Fair 2,000,000.00 2,000,000.00 1,990,000.00 3.100 3.100 3.937c 05/12/2009 0.594
31398ARD6 2078 99 Federal National Mortage Assoc Fair 1,999,192.44 2,000,000.00 2,001,250.00 3.600 3.619 3.504c 05119/2009 0.613
31398ANH1 2069 99 Federal National Mortage Assoc Fair 2,000,000.00 2,000,000.00 1,988,750.00 3.250 3.250 4.400c 02/25/2009 0.402
3128X7YG3 2082 99 Federal Home Loan Mortgage Fair 2,000,000.00 2,000,000.00 2,007,645.87 4.750 4.750 3.970c 12126/2008 0.235
3136F9SA2 2080 99 Federal National Mortage Assoc Fair 2,000,000.00 2,000,000.00 1,999,375.00 3.265 3.265 3.316c 06/10/2009 0.672
3133XQMC3 2074 99 Federal Home Loan Bank Fair 2,000,000.00 2,000,000.00 1,982,500.00 2.900 2.900 4.573c 04/14/2009 0.516
3136F9WV1 2085 99 Federal National Mortage Assoc Fair 2,000,000.00 2,000,000.00 2,015,000.00 4.000 4.000 2.990c 07/02/2009 0.732
3133XRNM8 2083 99 Federal Home Loan Bank Fair 2,000,000.00 2,000,000.00 2,005,000.00 3.650 3.648 3.142c 03/30/2009 0.000
3133XRK74 2084 99 Federal Home Loan Bank Fair 2,000,000.00 2,000,000.00 2,002,500.00 3.500 3.500 3.246c 12/30/2008 0.246
31398AKSO 2060 99 Federal National MortageAssoc Fair 2,000,000.00 2,000,000.00 2,007,500.00 4.500 4.500 3.736c 01/07/2009 0.268
3133XQUX8 2075 99 Federal Home Loan Bank Fair 2,000,000.00 2,000,000.00 1,989,375.00 3.100 3.100 4.043c 04/29/2009 0.559
Run Date:1012112008 -10:37 Page 1
Portfolio OTAY
AP
DU (PRF_DU)SymRept6,41.200
ReportVer.5.00
OTAY
Duration Report
Sorted by Investment Type -Investment Type
Through 09/30/2008
Investment Book Par Market Current YTM Current Maturityl Effective
Security 10 Investment#Fund Issuer Class Value Value Value Rate 365 Yield Call Date Duration
205003183 2066 99 California Bank &Trust Amort 79,108.00 79,108.00 79,108.00 3.180 3.224 3.180 01/22/2010 1.279 t
1002812475 2061 99 Neighborhood National Bank Amort 1,000,000.00 1,000,000.00 1,000,000.00 4.850 4.917 4.850 12/13/2008 0.199 t
Report Total 50,901,434.41 50,878,208.00 50,700,089.05 4.035 0.476t
t =Duration can not be calculated on these investments dueto incomplete Market price data.
Run Dale:10/2112008 -10:37 Page 2
Portfolio OTAY
AP
DU (PRF_DU)SymRepl 6.41.200
Report Ver.5.00
MEETING DATE:November 13,2008
W.O.lG.F.NO:DIV.NO.
AGENDA ITEM 11
STAFF REPORT
TYPE MEETING:Regula;:..~d'~d
SUBMITTED BY#..&~~efgast,Finance
Supervisor,Payroll &AP
APPROVED BY:Joseph Beachem,Chief Financial Officer
(Chief)
APPROVED BY:German Alvarez,Assistant General Manager
(Asst.GM):
SUBJECT:Accounts Payable Demand List
PURPOSE:
Attached is the list of demands for the Board's information.
FISCAL IMPACT:
SUMMARY
CHECKS (2014076-2014657)
WIRE TO:
CITY OF CHULA VISTA -BI-MONTHLY SEWER CHARGES
CITY TREASURER -RECLAIMED WATER PURCHASE AUG 08
DELTA HEALTH SYSTEMS -DENTAL &COBRA CLAIMS
LANDESBANK -CERTIFICATES OF PARTICIPATION
PLAN HANDLERS -MEDICAL CLAIMS
SAN DIEGO COUNTY WATER AUTHORITY -WATER DELIVERIES
SPECIAL DIST RISK MGMT AUTH -INS PREMIUM NOV 08
UNION BANK -PAYROLL TAXES
TOTAL CASH DISBURSEMENTS
RECOMMENDED ACTION:
That the Board receive the attached list of demands.
Jb/Attachment
NET DEMANDS
$3,367,593.00
$2,729,612.14
$196,890.12
$15,175.28
$51,345.37
$21,483.98
$2,690,351.40
$181,011.85
$299,609.32
$9,553,072.46
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2014076 THROUGH 2014657
RUN DATES 10/1/2008 TO 10/29/2008
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2014142 10101/08 01910 ABCANA INDUSTRIES 8350538 09/11/08 BULK SODIUM HYPOCHLORITE 1,373.27
830291 09/08/08 BULK SODIUM HYPOCHLORITE 1,162.72
830292 09/08/08 BULK SODIUM HYPOCHLORITE 815.38
830460 09/10108 BULK SODIUM HYPOCHLORITE 590.08 3,941.45
2014227 10108/08 01910 ABCANA INDUSTRIES 830896 09/18/08 BULK SODIUM HYPOCHLORITE 1,709.88
830726 09/15/08 BULK SODIUM HYPOCHLORITE 1,389.36
830727 09/15/08 BULK SODIUM HYPOCHLORITE 661.15 3,760.39
2014315 10/15/08 01910 ABCANA INDUSTRIES 831293 09/24/08 BULK HYPOCHLORITE SOLUTION 1,475.20
831170 09/23/08 BULK HYPOCHLORITE SOLUTION 1,397.41
831046 09/19/08 BULK HYPOCHLORITE SOLUTION 1,374.61
831369 09/25/08 BULK HYPOCHLORITE SOLUTION 1,138.58
831172 09/23/08 BULK HYPOCHLORITE SOLUTION 1,043.36
831171 09/23/08 BULK HYPOCHLORITE SOLUTION 670.55 7,099.71
2014495 10/22/08 01910 ABCANA INDUSTRIES 831584 09/29/08 BULK SODIUM HYPOCHLORITE 1,697.81
831900 10102/08 BULK SODIUM HYPOCHLORITE 1,168.08
831585 09/29/08 BULK SODIUM HYPOCHLORITE 992.41 3,858.30
2014579 10/29/08 01910 ABCANA INDUSTRIES 832087 10106/08 BULK SODIUM HYPOCHLORITE 1,573.10
832089 10106/08 BULK SODIUM HYPOCHLORITE 1,421.55
832269 10109/08 BULK SODIUM HYPOCHLORITE 1,139.92
832088 10106/08 BULK SODIUM HYPOCHLORITE 854.27
832270 10109/08 BULK SODIUM HYPOCHLORITE 362.76 5,351.60
2014228 10108/08 08488 ABLEFORCE INC 1430 10107108 CONSULTING SERVICES-IS DEPT 3,400.00
1420 09/30108 CONSULTING SERVICES-IS DEPT 2,550.00
1403 09/16/08 SHAREPOINT PROGRAMMING SERVICES 1,275.00 7,225.00
2014316 10/15/08 08488 ABLEFORCE INC 1437 10/14/08 CONSULTING SERVICES -IS DEPT 4,250.00 4,250.00
2014392 10/22/08 09295 ACCD REVOCABLE TRUST Ref002389867 10/20108 UB Refund Cst#0000127301 6.42 6.42
2014143 10101/08 07732 AIRGAS SPECIALTY PRODUCTS INC 131098530 09/09/08 BULK AQUA AMMONIA 1,702.80
131098531 09/09/08 BULK AQUAAMMONIA 1,393.20 3,096.00
2014496 10/22/08 07732 AIRGAS SPECIALTY PRODUCTS INC 131101691 09/30108 BULK AQUAAMMONIA 2,275.56
131101163 09/29/08 BULK AQUAAMMONIA 948.15
131101692 09/30108 BULK AQUAAMMONIA 758.52 3,982.23
2014497 10/22/08 00132 AIRGASWEST 103194312 09/30108 BREATHING AIR -TREATMENT PLANT 25.73 25.73
2014076 10101/08 09200 ALB GROUP Ref002389294 09/30108 UB Refund Cst #0000127987 25.32 25.32
2014077 10101/08 09164 ALFREDO PAREJA Ref002389256 09/30108 UB Refund Cst #0000092622 64.41 64.41
Page 1 of 31
~'-.'.<-,
OTAYWATER DISTRICT
CHECK REGISTER
FOR CHECKS 2014076 THROUGH 2014657
RUN DATES 10/112008 TO 10/29/2008
OTAY WATER DISTRICT
CHECKREGISTER
FOR CHECKS 2014076 THROUGH 2014657
RUN DATES 101112008 TO 1012912008
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2014076 THROUGH 2014657
RUN DATES 10/1/2008 TO 10/29/2008
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2014076 THROUGH 2014657
RUN DATES 10/1/2008 TO 10/29/2008
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
4001315802 10/01/08 COPIER MAINTENANCE 691.41
4001314622 10/01/08 COPIER MAINTENANCE 555.28
4001318432 10/01/08 COPIER MAINTENANCE 140.96 2,202.99
2014152 10/01/08 03527 CARDIAC SCIENCE 1072628 09/10/08 SAFETY EQUIPMENT 439.85 439.85
2014153 10/01/08 03572 CARLTON DISANTE &48968 09/24108 LEGAL SERVICES AUG 2008 171.00 171.00
2014401 10/22/08 09232 CARMAC INDUSTRIES INC Ref002389803 10/20/08 UB Refund Cst #0000021349 128.11 128.11
2014244 10/08/08 02758 CARMEL BUSINESS SYSTEMS INC 6850 10/01/08 TEMPORARY SERVICES-RECORDS 1,477.50 1,477.50
2014508 10/22/08 02758 CARMEL BUSINESS SYSTEMS INC 6849 10/01/08 RECORDS STORAGE &SUPPORT 990.76 990.76
2014586 10/29/08 03491 CASA DE ORO CAR WASH 401 10/03/08 VEHICLE WASHING 764.96 764.96
2014154 10/01/08 03232 CDW GOVERNMENT INC LRG9191 09/10/08 COMPUTER UPS POWERSUPPLIES 1,139.52 1,139.52
2014245 10/08108 03232 CDW GOVERNMENT INC LRT2234 09/12/08 COMPUTER UPS POWER SUPPLIES 933.22
LSQ2030 09/17/08 SERVER UPS POWER SUPPLY 315.97
LTG5129 09/18/08 SCADA COMPUTER EQUIPMENT 245.77 1,494.96
2014326 10/15/08 03232 CDW GOVERNMENT INC LTN6508 09/19/08 SCADA COMPUTER SUPPLIES 285.13
LVN7564 09/24/08 SCADA COMPUTER SUPPLIES 285.09
LVGOO04 09/23/08 SCADA COMPUTERSUPPLIES 278.79
LTW3287 09/22/08 SCADA COMPUTERSUPPLIES 119.21 968.22
2014587 10/29/08 03232 CDW GOVERNMENT INC LZZ4888 10/09/08 DATA CENTER EQUIPMENT 2,451.32 2,451.32
2014402 10/22/08 09326 CECELIA MORALES Ref002389898 10/20/08 UB Refund Cst#0000140009 20.76 20.76
2014403 10/22108 09235 CECILIA ESPIRITU Ref002389806 10/20/08 UB Refund Cst #0000045194 53.35 53.35
2014085 10/01/08 09193 CENTURY 21 AWARD Ref002389287 09/30/08 UB Refund Cst #0000126940 52.96 52.96
2014404 10/22/08 09270 CHET FRITH Ref002389842 10/20/08 UB Refund Cst #0000124315 43.95 43.95
2014405 10/22/08 09325 CHRIS MUCKLEY Ref002389897 10/20/08 UB Refund Cst #0000140007 118.02 118.02
2014406 10/22/08 09257 CINDY GONZALEZ Ref002389829 10/20/08 UB Refund Cst #0000120455 83.20 83.20
2014588 10/29/08 00446 CITY OF CHULAVISTA APN59338240004 10/15/08 SECURED PROPERTY TAXES 53.56
APN59338240002 10/15/08 SECURED PROPERTY TAXES 30.98
APN59338240001 10/15/08 SECURED PROPERTYTAXES 19.22
APN59338240003 10/15/08 SECURED PROPERTYTAXES 1.56 105.32
Page 5 of 31
,...""""""""=="'"~~~~~-----~~-'~~.-"~~~'.,,~~-~-""'-~-"_:',,-,"".;!";'::,~~-
OTAYWATER DISTRICT
CHECK REGISTER
FOR CHECKS 2014076 THROUGH 2014657
RUN DATES 10/1/2008 TO 10/29/2008
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2014155 10/01/08 04119 CLARKSON LAB &SUPPLY INC 41444 08/31/08 BACTERIOLOGICAL TESTING &LAB SERVICES 190.00
41316 08/31/08 BACTERIOLOGICAL TESTING &LAB SERVICES 95.00 285.00
2014509 10/22/08 08397 CLOVERLEAF TOOL COMPANY 18650 10/01/08 TIGER TAILS AND LEADER HOSE 366.89 366.89
2014407 10/22/08 09287 COLDWELLBANKER Ref002389859 10/20/08 UB Refund Cst #0000126514 60.79 60.79
2014156 10/01/08 04398 CONSTRUCTION MANAGEMENT 000640 09/30/08 MEETING REGISTRATION 85.00
000643 09/30/08 MEETING REGISTRATION 55.00 140.00
2014327 10/15/08 04398 CONSTRUCTION MANAGEMENT 000678 10/02/08 REGISTRATION FEES 250.00 250.00
2014510 10/22108 03774 CONSTRUCTION RESIDUE RECYCLING 2245 09/30/08 DUMPING SERVICES 120.00 120.00
2014157 10/01/08 03706 CONSUMERS PIPE &SUPPLYCO S1 078711001 09/11/08 WAREHOUSE SUPPLIES 1,227.95 1,227.95
2014246 10/08/08 02060 COSS,GREGORY D 000672 10/07/08 EXAM FEE REIMBURSEMENT 120.00 120.00
2014511 10/22/08 02612 COUNCIL OF WATER UTILITIES 000700 10/13/08 MONTHLY MEETING 25.00 25.00
2014328 10/15/08 00206 COUNTYOF SAN DIEGO 1724 10101/08 NOV 08 DIV 5 ELECTION COSTS 5,124.00 5,124.00
2014589 10/29/08 00134 COUNTY OFSAN DIEGO 2008100 10/07108 COUNTY ASSESSOR DATA 125.00 125.00
2014590 10/29/08 00184 COUNTYOF SAN DIEGO DEH090088D11 10/13/08 RECLAIMED WATER SHUT DOWN TEST 238.00 238.00
2014247 10/08/08 08387 COUNTY OFSD-LANDFILL MGMNT 200807 09/03/08 MICROTURBINEPOWER GENERATION 5,498.75 5,498.75
2014512 10/22/08 07601 CREATIVE BENEFITS INC 67173 10/01/08 FLEXIBLE SPENDING ACCT ADMINISTRATION 540.00 540.00
2014248 10/08/08 06415 CUMMINS CAL PACIFIC LLC 00463555 09/17/08 APCD EMISSIONS RETROFIT 13,003.38 13,003.38
2014513 10/22/08 06415 CUMMINS CAL PACIFIC LLC 82374 10/02/08 APCD RETROFIT 664.14 664.14
2014591 10/29/08 06415 CUMMINS CAL PACIFIC LLC 00464297 10/06/08 APCD EMISSIONS RETROFIT 13,003.38 13,003.38
2014158 10/01/08 00422 D & D TOOL &SUPPLY S1725237001 09/08/08 KNEE PADS 155.77 155.77
2014408 10/22/08 09228 DALE NEWELL Ref002389799 10/20/08 UB Refund Cst#0000003057 95.00 95.00
2014409 10/22/08 09230 DANIEL MOLINA Ref002389801 10/20/08 UB Refund Cst#0000018378 14.69 14.69
2014159 10/01/08 08780 DATAPROSE 51616 09/09/08 BILLING PRINT SERVICES 13,851.60 13,851.60
2014086 10/01/08 09172 DAVID ARCHER Ref002389264 09/30/08 UB Refund Cst#0000123361 52.05 52.05
Page 6 of31
""'==.'~..~.~..~..~----------~--~~.~~-_."""""·"'-'7--O.~""""='~""·""'-~~-"""""""~----"7"""7"""._"',""~"==''''''''''''''''.-_.~''--<>=__'''''''''~~._,~·""":"=""~Y-"~~~·_""""""""~'~~~"_·____~.•',:.,.)5 ;'O"io.;._
OTAYWATER DISTRICT
CHECK REGISTER
FOR CHECKS 2014076 THROUGH 2014657
RUN DATES 10/1/2008TO 10/29/2008
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2014410 10/22/08 09312 DAVID KATSANES Ref002389884 10/20/08 UB Refund Cst#0000133811 52.94 52.94
2014087 10/01/08 09212 DAWNETTAMESHACK Ref002389306 09/30/08 UB Refund Cst#0000001149 7.61 7.61
2014411 10/22/08 09317 DELFINA MONTANO Ref002389889 ·10/20/08 UB Refund Cst #0000134949 75.00 75.00
2014329 10/15/08 07680 DELTA HEALTH SYSTEMS P081008 10/08/08 EMPLOYEE HEALTH ADMINISTRATION SERVICE 1,389.54 1,389.54
2014514 10/22/08 07680 DELTA HEALTH SYSTEMS IVC02400 09/30/08 EMPLOYEE HEALTH ADMIN SERVICES 68.00 68.00
2014088 10/01/08 09208 DENNIS DESOUZA Ref002389302 09/30/08 UB Refund Cst#0000133943 39.84 39.84
2014412 10/22/08 09328 DENNIS DESOUZA Ref002389900 10/20/08 UB Refund Cst #0000140366 113.57 113.57
2014515 10/22/08 03744 DEPARTMENT OF JUSTICE 698856 09/05/08 FINGERPRINT ANALYSIS SERVICES 204.00 204.00
2014592 10/29/08 03744 DEPARTMENT OF JUSTICE 703700 10/07/08 FINGERPRINT ANALYSIS SERVICES 204.00 204.00
2014160 10/01/08 00319 DEPARTMENT OF PUBLIC HEALTH 000631 09/25/08 CERTIFICATION RENEWAL 130.00 130.00
2014249 10/08/08 00319 DEPARTMENT OF PUBLIC HEALTH 0860515 09/30108 #3710034 WATER SYSTEM FEES 5,539.40 5,539.40
2014250 10108/08 00319 DEPARTMENT OF PUBLIC HEALTH 000670 10107/08 CERTIFICATION RENEWAL 80.00 80.00
2014161 10/01/08 09145 DERRICK PERRY 045007330 09/25/08 REFUND OVERPAYMENT 133.49 133.49
2014330 10/15/08 03417 DIRECTV 871144893 10105/08 SATELLITE TV SERVICE 9.98 9.98
2014593 10/29/08 03417 DIRECTV 880129529 10/19/08 SATELLITE TV SERVICE 4.99 4.99
2014594 10/29/08 09335 DONNA MILLER 000722 10/27/08 CREDIT REFUND CST#28172 359.48 359.48
2014413 10/22/08 09263 DORLA MCALLISTER Ref002389835 10/20/08 UB Refund Cst #0000122782 52.95 52.95
2014414 10/22108 09313 DOWNEY SAVINGS AND LOAN Ref002389885 10/20108 UB Refund Cst #0000133855 98.15 98.15
2014251 10/08/08 03152 DRIES,ROSEMARY F 000659 10101/08 EDUCATIONITUITION REIMBURSEMENT 300.00 300.00
2014415 10/22/08 09275 EBONY JONES Ref002389847 10/20108 UB Refund Cst #0000125276 11.05 11.05
2014595 10/29/08 02367 ED HANSON'S MUFFLER SERVICE 82374 10/02108 APCD RETROFIT 664.14 664.14
2014252 10/08/08 02447 EDCO DISPOSAL CORPORATION 000655 09/30/08 RECYCLING SERVICES 89.25 89.25
2014516 10/22/08 00230 EDP PRODUCTS INC 505760 09/29108 CARTRIDGE STORAGE/RETRIEVAL 212.40 212.40
Page 7 of31
.~."..."..",~--~-~,_.~-.-,.S
OTAYWATER DISTRICT
CHECK REGISTER
FOR CHECKS2014076 THROUGH 2014657
RUN DATES 10/1/2008 TO 10/29/2008
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2014076 THROUGH 2014657
RUN DATES 10/1/2008 TO 10/29/2008
OTAYWATER DISTRICT
CHECK REGISTER
FOR CHECKS 2014076 THROUGH 2014657
RUN DATES 10/1/2008 TO 10/29/2008
OTAYWATERDISTRICT
CHECK REGISTER
FOR CHECKS 2014076 THROUGH 2014657
RUN DATES 10/1/2008 TO 10/29/2008
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2014076 THROUGH 2014657
RUN DATES 10/1/2008 TO 10/29/2008
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2014174 10/01/08 06640 HD SUPPLYWATERWORKS LTO 7808060 09/08/08 INVENTORY 4,601.61
7808053 09/08108 INVENTORY 745.42 5,347.03
2014263 10/08/08 06640 HD SUPPLY WATERWORKS LTO 7979289 CREDIT MEMO (1,383.58)
7902894 09/18/08 INVENTORY 6,564.56
7880399 09/18/08 INVENTORY 1,651.16
7808052 09/12/08 10"DEVELOPER PROJECT 1,383.58 8,215.72
2014343 10/15/08 06640 HD SUPPLY WATERWORKS LTO 7942783 09/23/08 INVENTORY 14,378.16 14,378.16
2014526 10/22108 06640 HD SUPPLY WATERWORKS LTD 7979337 09/26/08 INVENTORY 1,383.58
7964836 09/26/08 INVENTORY 738.95 2,122.53
2014527 10/22/08 04472 HECTOR IMARES-COSSIO 42 09/30108 BI-NATIONAL CONSULTANT SERVICES 3,600.00 3,600.00
2014099 10101/08 09157 HECTOR LOPEZ Ref002389248 09/30108 UB Refund Cst#0000068112 120.00 120.00
2014528 10/22/08 00062 HELIX WATER DISTRICT 174639861008 10107/08 WATER BILL -RUSSELL SQ 38.20
178540011008 10107/08 WATER BILL -AVOCADO BLVD 34.80 73.00
2014529 10/22/08 03066 HENRY PRATT COMPANY 1693576 09/30108 REPAIR DISCHARGE VALVE 989.45 989.45
2014428 10/22/08 09262 HERIBERTO GAMINO Ref002389834 10/20108 UB Refund Cst #0000121979 38.46 38.46
2014604 10/29/08 00713 HEWLETT-PACKARD COMPANY 44999182 10104/08 DATA CENTER EQUIPMENT 1,702.91 1,702.91
2014530 10/22/08 06843 HI-TECH AIR CONDITIONING 4762 09/30108 AlC REPAIR&PARTS 2,549.01 2,549.01
2014264 10/08/08 01109 HOME DEPOT CREDIT SERVICES 7192056 09/30108 PLUMBING SUPPLIES 447.09 447.09
2014605 10/29/08 01109 HOME DEPOT CREDIT SERVICES 7190178 10/20108 SHOVELS 129.11 129.11
2014429 10/22/08 09266 HSBC Ref002389838 10/20108 UB Refund Cst#0000123279 10.22 10.22
2014531 10/22/08 06301 HVAC ENGINEERING INC 5419 09/29/08 PUMP STATION REPLACEMENT 1,697.00 1,697.00
2014430 10/22/08 09229 IMELDA GODINEZ Ref002389800 10/20108 UB Refund Cst#0000011861 124.32 124.32
2014100 10/01/08 08908 INGRID ARREAGA Ref002389250 09/30108 UB Refund Cst#0000073534 207.25 207.25
2014101 10/01108 09209 INSTACLOSE REAL ESTATE Ref002389303 09/30108 UB Refund Cst #0000134020 75.00 75.00
2014431 10/22/08 09297 INTEGRITY FIRST REAL ESATE Ref002389869 10/20108 UB Refund Cst #0000127452 40.34 40.34
2014532 10/22/08 02028 INTERACTIVE DATA PRICING AND 05675098 09/30108 DIAL-UP SERVICE FOR INVESTMENTS 85.00 85.00
Page 12 of31
'="_.·."·".,,..'.....,,'....,,.="'"_=.'~_.··,_~·~~'_~.·r.__·_~.--'_,"'"T_.~.··.~•.•~.'.·."e.~_~.,.",.,."7i~~"'-~_._,..~._.•·s·=_._-~'~.,~''<
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2014076 THROUGH 2014657
RUN DATES 10/1/2008TO 10/29/2008
Check#Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2014432 10/22/08 09280 INTERGRATED ASSET SERVICE Ref002389852 10/20/08 UB Refund Cst#0000125812 55.98 55.98
2014533 10/22/08 02372 INTERIORPLANT SERVICE INC 28959 09/30/08 PLANT SERVICE 169.00 169.00
2014175 10/01/08 03368 INVENSYS SYSTEMS INC 92262012 09/11/08 LEVEL TRANSMITTERS 2,434.05 2,434.05
2014606 10/29/08 06630 J C HEDEN AND ASSOCIATES INC OWD022 10/07/08 AS NEEDED ENGINEERING DRAFTING SERVICE:5,300.00 5,300.00
2014176 10/01/08 09215 J PARKESON MILLER 000654 10/01/08 SETTLEMENT CLAIM 494.44 494.44
2014265 10/08/08 09217 JAMES CIOLLI 09217 10/02/08 CASH IN YOUR PLANTS REIMBURSEMENT 2,200.00 2,200.00
2014102 10101108 09183 JAN DAVIS Ref002389276 09/30/08 UB Refund Cst #0000126173 21.18 21.18
2014607 10/29/08 03077 JANI KING OF CA INC -SDO SD010080312 10/01/08 OFF-SITE JANITORIAL SERVICES 1,042.00 1,042.00
2014103 10/01/08 09204 JEFF MERRITT Ref002389298 09/30/08 UB Refund Cst #0000128306 44.65 44.65
2014104 10/01/08 09159 JEFF STONE Ref002389251 09/30/08 UB Refund Cst#0000073698 80.00 80.00
2014344 10/15/08 09224 JEFF WAGNER 000697 10/13/08 UB REFUND #250-1082-26 153.60 153.60
2014433 10/22108 09318 JEFFWAGNER Ref002389890 10/20108 UB Refund Cst#0000135106 274.83 274.83
2014266 10/08/08 03345 JENKINS,WILLIAM L 000676 10/08/08 CONFERENCE TRAVEL EXPENSES 773.29
000677 10/08/08 REIMB DUES &AWARD APPLICATION FEES 340.00 1,113.29
2014105 10/01/08 09196 JEREMY H KATZ Ref002389290 09/30/08 UB Refund Cst#0000127534 27.57 27.57
2014434 10/22/08 09288 JERREL MCKISSICK Ref002389860 10/20/08 UB Refund Cst#0000126622 12.26 12.26
2014435 10/22/08 09239 JOBERDINE IOSEFA Ref002389810 10/20/08 UB Refund Cst #0000054728 13.07 13.07
2014106 10/01/08 09156 JOHN NEUMAN Ref002389246 09/30/08 UB Refund Cst #0000053009 50.34 50.34
2014534 10/22/08 02533 JOHNSON,ERIC J 000703 10/20/08 SAFETY BOOTS REIMBURSEMENT 136.37 136.37
2014267 10/08/08 03172 JONES &STOKES ASSOCIATES 0056049 09/13/08 HABITAT MANAGEMENT ENVIRON.SERVICES 15,242.95
0056042 09/13/08 ON-CALL ENVIRONMENTAL SVCS 6,854.44
0056043 09/13/08 ON-CALL ENVIRONMENTAL SVCS 3,506.25
0056045 09/13/08 ON-CALL ENVIRONMENTAL SVCS 2,913.75
0056044 09/13/08 ON-CALL ENVIRONMENTAL SVCS 2,231.73 30,749.12
2014107 10/01/08 09160 JORGE CASTRO Ref002389252 09/30/08 UB Refund Cst #0000080827 51.68 51.68
Page 13 of31
=-<"""~,",,==~,,~..=.,.~.~~"=,~~'~T -_..'-----.
OTAYWATER DISTRICT
CHECK REGISTER
FOR CHECKS 2014076 THROUGH 2014657
RUN DATES 10/1/2008 TO 10/29/2008
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2014076 THROUGH 2014657
RUN DATES 10/1/2008 TO 10/29/2008
OTAYWATERDISTRICT
CHECK REGISTER
FOR CHECKS 2014076 THROUGH 2014657
RUN DATES 10/112008 TO 10/29/2008
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2014076 THROUGH 2014657
RUN DATES 10/1/2008 TO 10/29/2008
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2014452 10/22108 09285 MELISSA HERNANDEZ Ref002389857 10/20/08 UB Refund Cst #0000126412 24.15 24.15
2014615 10/29/08 03169 MENDEZ-SCHOMER,ALICIA 15531008 10/25/08 TRAVEL EXPENSE REIMBURSEMENTS 658.27 658.27
2014453 10/22108 09281 MICHAEL CASTILLO Ref002389853 10/20/08 UB Refund Cst #0000125908 31.31 31.31
2014454 10/22/08 09243 MICHELLE LAMTECSON Ref002389814 10/20/08 UB Refund Cst #0000072416 68.14 68.14
2014455 10/22108 09329 MICHELLE MACAWILI Ref002389901 10/20/08 UB Refund Cst#0000140676 14.29 14.29
2014456 10/22/08 09271 MIGUEL ULLOA Ref002389843 10/20/08 UB Refund Cst#0000124333 20.69 20.69
2014181 10/01/08 01577 MINARIK CORPORATION 110605690DD CREDIT MEMO (998.04)
10605669DD CREDIT MEMO (665.36)
10605905DD 09/09/08 REMOTE PLC ANALOG MONDULES 1,678.30 14.90
2014275 10/08108 00887 MIRAMAR TRUCK CENTER-SAN DIEGO 237284 09/15/08 REPAIR PART 292.34 292.34
2014182 10/01/08 03393 MOBILE MINI LLC -CA 904151146 09/08/08 RENTAL 40'METER STORAGE CONTAINERS 170.88 170.88
2014541 10/22108 03393 MOBILE MINI LLC -CA 904156354 09/28/08 RENTAL 40'METER STORAGE CONTAINERS 173.28 173.28
2014616 10/29/08 03393 MOBILE MINI LLC -CA 904158656 10/06/08 RENTAL 40'METER STORAGE CONTAINERS 179.27 179.27
2014350 10/15/08 02371 MOODY'S INVESTORS SERVICE C1675253000 09/23/08 1996 CERTIFICATES OF PARTICIPATION 5,500.00 5,500.00
2014617 10/29/08 03623 MWH AMERICAS INC 1216881 10/06/08 PROFESSIONAL SERVICES RENDERED 517.00 517.00
2014183 10/01/08 02037 MWH LABORATORIES 250871L1 09/04/08 LABORATORYANALYSES 2,300.00
250698L1 09/02/08 LABORATORY ANALYSES 363.00 2,663.00
2014276 10/08/08 02037 MWH LABORATORIES 250930Ll 09/16/08 LABORATORY SERVICES 4,240.00 4,240.00
2014618 10/29/08 02037 MWH LABORATORIES 252855L1 10/03/08 LABORATORY SERVICES 375.00 375.00
2014277 10/08/08 02764 MYRON L COMPANY 297957 09/17/08 LABORATORY SUPPLIES 1,076.34 1,076.34
2014184 10/01/08 04676 NAPAAUTO PARTS 124061 CREDIT MEMO (142.23)
125322 CREDIT MEMO (124.82)
125597 CREDIT MEMO (56.03)
124068 CREDIT MEMO (50.64)
125323 CREDIT MEMO (21.54)
124069 CREDIT MEMO (13.86)
119374 07111/08 REPAIR PARTS 200.34
125306 09/11/08 REPAIR PARTS 157.79
Page 17 of31
,....~,~.~...~~-~.~~.~.~.~.-_-.-..•_~~."_"_~~'__'~_'='=T.'~._.._.____,.,._.,...,,~_,..•~.•,.~.•~~.•.,._7=~~'~~'''''~W7R1"'TT7nmi'P'CV '",
OTAYWATER DISTRICT
CHECK REGISTER
FOR CHECKS2014076 THROUGH 2014657
RUN DATES 10/1/2008 TO 10/29/2008
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
125162 09/10/08 REPAIR PARTS 135.36
124635 09/05/08 REPAIR PARTS 124.82
124281 09102108 REPAIR PARTS 74.44
124929 09/09/08 REPAIR PARTS 55.75
125596 09/15/08 REPAIR PARTS 50.64
124692 09/05/08 REPAIR PARTS 42.09
124955 09/09/08 REPAIR PARTS 31.72
125213 09/11/08 REPAIR PARTS 27.47
124416 09/03/08 REPAIR PARTS 21.54
124958 09/09/08 REPAIR PARTS 20.02
125092 09/10/08 REPAIR PARTS 16.58
123874 08/27/08 REPAIR PARTS 14.44
124817 09108/08 REPAIR PARTS 14.43
125211 09/11/08 REPAIR PARTS 11.20
125125 09/10/08 REPAIR PARTS 9.12
124825 09/08/08 REPAIR PARTS 6.63 605.26
2014278 10/08/08 04676 NAPAAUTO PARTS 125806 09/17/08 REPAIR PARTS 99.50
125854 09/18/08 REPAIR PARTS 76.47
125633 09/16/08 REPAIR PARTS 65.04
125811 09/17/08 REPAIR PARTS 64.91
125585 09/15/08 REPAIR PARTS 64.77
125732 09/17/08 REPAIR PARTS 63.36
125338 09/12/08 REPAIR PARTS 49.06
125742 09/17/08 REPAIR PARTS 37.98
125857 09/18/08 REPAIR PARTS 15.49
125676 09/16/08 REPAIR PARTS 6.87
125709 09/16/08 REPAIR PARTS 6.08 549.53
2014185 10/01/08 03523 NATIONAL DEFERRED COMPENSATION Ben2389325 10102/08 DEFERRED COMP PLAN 10,523.80 10,523.80
2014351 10/15/08 03523 NATIONAL DEFERRED COMPENSATION Ben2389662 10/16/08 DEFERRED COMP PLAN 10,502.96 10,502.96
2014619 10/29/08 03523 NATIONAL DEFERRED COMPENSATION Ben2390031 10/30/08 DEFERRED COMP PLAN 9,377.97 9,377.97
2014279 10/08/08 03605 NATIONAL FIRE PROTECTION ASSOC 000656 09/29/08 MEMBERSHIP RENEWAL 390.00 390.00
2014457 10/22/08 09268 NATIONSTAR Ref002389840 10/20/08 UB Refund Cst #0000123694 53.58 53.58
2014280 10/08/08 03733 NEC UNIFIED SOLUTIONS INC VAG10261423 09/15/08 MAINTENANCE FOR PHONENOICE MAIL SYSTEI 36,399.40 36,399.40
2014542 10/22/08 03733 NEC UNIFIED SOLUTIONS INC VSH10262343 09/29/08 LABOR FOR PHONES SVCS 2,804.00 2,804.00
2014458 10/22/08 09314 NEUMAN &NEUMAN Ref002389886 10/20/08 UB Refund Cst #0000133970 64.72 64.72
2014281 10/08/08 00745 NEWARK 79861156 CREDIT MEMO (952.51)
Page 18 of31
.~---------,~~..
OTAYWATER DISTRICT
CHECK REGISTER
FOR CHECKS 2014076 THROUGH 2014657
RUN DATES 10/1/2008 TO 10/29/2008
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
16411852 09/10/08 REMOTE PLC CABLE 2,329.59
16347075 08/25/08 REMOTE PLC CABLE 72.25 1,449.33
2014543 10/22108 00745 NEWARK 16489769 09/26/08 LED DISPLAYS 1,772.45 1,772.45
2014544 10/22/08 05494 NEXTEL OF CALIFORNIA 901500243025 10/12/08 GIS (AIR-TRAK)CELLULAR SERVICE 3,434.72 3,434.72
2014282 10/08/08 03571 NEXTLEVEL INTERNET INC 16622 09/14/08 INTERNET WEB HOSTING 416.00 416.00
2014352 10/15/08 03571 NEXTLEVEL INTERNET INC 16865 10/14/08 INTERNET WEB HOSTING 416.00 416.00
2014124 10/01/08 09213 NOEL MEDINA Ref002389307 09/30/08 UB Refund Cst #0000005143 81.79 81.79
2014283 10/08/08 02669 NORTHERN TOOL &EQUIPMENT CO 18740838 09/18/08 REPAIR PARTS 217.96 217.96
2014459 10/22/08 09311 OAK TREE REALTY Ref002389883 10/20/08 UB Refund Cst #0000131445 26.77 26.77
2014460 10/22/08 09321 OAKTREE REALTV Ref002389893 10/20/08 UB Refund Cst#0000136163 75.00 75.00
2014186 10/01/08 00510 OFFICE DEPOT INC 442884490001 09/10/08 OFFICE SUPPLIES 120.03
443619100001 09/10/08 OFFICE SUPPLIES 99.85
442884789001 09/10/08 OFFICE SUPPLIES 17.42 237.30
2014353 10/15/08 00510 OFFICE DEPOT INC 446072914001 CREDIT MEMO (28.11)
445202593001 09/24/08 OFFICE SUPPLIES 1,290.56 1,262.45
2014545 10/22/08 00510 OFFICE DEPOT INC 445597878001 10/01/08 OFFICE SUPPLIES 310.29
445494048001 10/01/08 OFFICE SUPPLIES 157.80
446101492001 10101108 OFFICE SUPPLIES 134.38
445801026001 10/01/08 OFFICE SUPPLIES 56.22
446072915001 10/01/08 OFFICE SUPPLIES 37.81
44610206100 10/01/08 OFFICE SUPPLIES 13.57 710.07
2014620 10/29/08 00510 OFFICE DEPOT INC 446244352001 10/08/08 OFFICE SUPPLIES 185.32 185.32
2014284 10/08/08 07945 OLIN CORP -CHLOR ALKALI 1071753 09/17/08 CHLORINE 2,187.55 2,187.55
2014621 10/29/08 07945 OLIN CORP -CHLOR ALKALI 1079623 10/08/08 CHLORINE 2,187.55 2,187.55
2014461 10/22108 09301 OLYMPIC PROPERTIES Ref002389873 10/20/08 UB Refund Cst#0000127803 62.08 62.08
2014462 10/22/08 09304 OLYMPIC PROPERTIES Ref002389876 10/20/08 UB Refund Cst#0000127948 38.05 38.05
2014354 10/15/08 09048 OMEGA ENGINEERING INC 707921 09/23/08 ELECTRONIC PRESSURE TRANSMITER 1,301.00 1,301.00
2014187 10/01/08 00496 ONESOURCE DISTRIBUTORS LLC S2975981001 09/05/08 MV PLC PANEL HARDWARE 4,170.22 4,170.22
Page 19 of31
~.~""""""""'~"-.~~'~--~"~---_.--..,-"...-,.-.-_",,,~}".,.;;r;;;:
OTAYWATERDISTRICT
CHECK REGISTER
FOR CHECKS 2014076 THROUGH 2014657
RUN DATES 10/1/2008 TO 10/29/2008
OTAY WATERDISTRICT
CHECK REGISTER
FOR CHECKS 2014076 THROUGH 2014657
RUN DATES 10/1/2008TO 10/29/2008
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2014076 THROUGH 2014657
RUN DATES 10/1/2008 TO 10/29/2008
OTAYWATER DISTRICT
CHECK REGISTER
FOR CHECKS 2014076 THROUGH 2014657
RUN DATES 10/1/2008 TO 10/29/2008
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2014634 10/29/08 00521 RICK POST WELDING 8213 09/26/08 WELDING SERVICES 720.00 720.00
2014201 10/01/08 04542 ROBAK,MARK 70140808 08/31/08 MILEAGE REIMBURSEMENT 9.36 9.36
2014466 10/22/08 09327 ROBERT SCHMIDT Ref002389899 10/20/08 UB Refund Cst #0000140316 50.60 50.60
2014467 10/22/08 09310 ROBERT WEICHELT Ref002389882 10/20/08 UB Refund Cst #0000128040 8.18 8.18
2014127 10/01/08 09194 ROCHELLE ASBELL Ref002389288 09/30/08 UB Refund Cst #0000127041 48.92 48.92
2014468 10/22/08 09253 ROCHELLE STEWART Ref002389825 10/20/08 UB Refund Cst #0000091604 60.40 60.40
2014128 10/01/08 09165 ROSA HERNANDEZ Ref002389257 09/30/08 UB Refund Cst #0000092805 20.29 20.29
2014202 10101/08 03279 ROTH STAFFING COMPANIES LP 12233177 09/19/08 TEMPORARY SERVICES -HR DEPT 1,315.20
12235728 09/30/08 TEMPORARY SERVICES -HR DEPT 263.04 1,578.24
2014291 10/08108 03279 ROTH STAFFING COMPANIES LP 12238218 10/03/08 TEMPORARY SERVICES-ADM DEPT 1,183.68 1,183.68
2014556 10/22/08 03279 ROTH STAFFING COMPANIES LP 12243149 10/17/08 TEMPORARY SERVICES-ADM 1,315.20
12241490 10/10/08 TEMPORARY SERVICES-ADM 1,315.20 2,630.40
2014635 10/29/08 03279 ROTH STAFFING COMPANIES LP 12245599 10/24/08 TEMPORARYSERVICES -HR DEPT 1,315.20 1,315.20
2014129 10/01/08 08708 RUTH REYES Ref002389284 09/30/08 UB Refund Cst#0000126825 38.18 38.18
2014469 10/22/08 09282 RUTH REYES Ref002389854 10/20/08 UB Refund Cst #0000125930 49.99 49.99
2014203 10/01/08 00217 RW LITTLE CO INC 89462 09/10/08 SANDBLAST &POWDERCOATSERVICES 290.00 290.00
2014557 10/22/08 00362 RYAN HERCO PRODUCTS CORP 6458905 09/29/08 6"PVCCAPS 423.00 423.00
2014363 10/15/08 09223 SAN DIEGO CO SYMPOSIUM FUND 000693 10/14/08 REGISTRATION FEE 50.00 50.00
2014364 10/15/08 02680 SAN DIEGO COUNTY TREASURER 58516020000809 09/29/08 VOTER APPROVED BONDS TAXES 145.56 145.56
2014292 10/08/08 00247 SAN DIEGO DAILY TRANSCRIPT 111876 09/12/08 WATER CONSERVATION AD 1,500.00 1,500.00
2014558 10/22/08 00247 SAN DIEGO DAILY TRANSCRIPT 114318 10/01/08 BID ADVERTISEMENT 57.05 57.05
2014470 10/22/08 '09245 SAN DIEGO EXPRESSWAYLP Ref002389816 10/20/08 UB Refund Cst #0000073661 7.10 7.10
2014204 10/01/08 00121 SAN DIEGO GAS &ELECTRIC 000639 09/25/08 UTILITY EXPENSES 69,242.51
000633 09/23/08 UTILITY EXPENSES 32,289.39
000635 09/25/08 UTILITY EXPENSES 1,177.29 102,709.19
Page 23 of31
__"'~~""~"_'_____'_~_~~~'~".~"~-c_,'",,'-'_...,___.__._._,.,~,",,_.,__,._~"_,~~~.~.-•..,,,.-.~'~_"'_'.~'.~_,_"~._~_....__._,~.,";~~~
OTAYWATER DISTRICT
CHECK REGISTER
FOR CHECKS 2014076 THROUGH 2014657
RUN DATES 10/1/2008TO 10/29/2008
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2014293 10/08/08 00121 SAN DIEGO GAS &ELECTRIC 000666 10/02/08 UTILITY EXPENSES 56,483.76
000657 09/26/08 UTILITY EXPENSES 16,051.34
000669 10/01/08 UTILITY EXPENSES 2,552.48 75,087.58
2014365 10/15108 00121 SAN DIEGO GAS &ELECTRIC 000686 10/03/08 UTILITY EXPENSES 58,467.15 58,467.15
2014559 10/22/08 00121 SAN DIEGO GAS &ELECTRIC 000705 10/16/08 UTILITY EXPENSES 95.84 95.84
2014636 10/29/08 00121 SAN DIEGO GAS &ELECTRIC 000718 10/23/08 UTILITY EXPENSES 110,526.93
000723 10/24/08 UTILITY EXPENSES 10,915.83 121,442.76
2014366 10/15/08 00285 SAN DIEGO LAFCO 000696 10/14/08 REFERENCE BOOKS 100.00 100.00
2014637 10/29/08 00285 SAN DIEGO LAFCO 000719 10/21/08 COUNTY PUBLICATION 25.00 25.00
2014294 10/08/08 09220 SAN DIEGO REAL ESTATE OWNED 000674 10/07/08 REFUND TO ORIGINAL PAYEE 109.61 109.61
2014130 10/01/08 09182 SAN DIEGO REALTY Ref002389275 09/30/08 UB Refund Cst #0000125465 6.20 6.20
2014131 10/01/08 09187 SAN DIEGO REALTY Ref002389280 09/30/08 US Refund Cst#0000126410 13.48 13.48
2014132 10/01/08 09195 SAN DIEGO REALTY Ref002389289 09/30/08 UB Refund Cst #0000127445 5.10 5.10
2014471 10/22/08 09278 SAN DIEGO REALTY Ref002389850 10/20/08 UB Refund Cst#0000125597 75.00 75.00
2014472 10/22/08 09291 SAN DIEGO REALTY Ref002389863 10/20/08 US Refund Cst #0000126980 37.98 37.98
2014473 10/22/08 09292 SAN DIEGO REALTY Ref002389864 10/20/08 UB Refund Cst #0000127204 58.67 58.67
2014474 10/22/08 09299 SAN DIEGO REALTY Ref002389871 10/20/08 UB Refund Cst #0000127753 47.94 47.94
2014475 10/22/08 09302 SAN DIEGO REALTY Ref002389874 10/20/08 US Refund Cst #0000127816 15.67 15.67
2014476 10/22/08 09308 SAN DIEGO REALTY Ref002389880 10/20/08 UB Refund Cst #0000128012 141.32 141.32
2014477 10/22/08 09315 SAN DIEGO REALTY Ref002389887 10/20/08 UB Refund Cst #0000134058 14.55 14.55
2014133 10/01/08 09199 SAN DIEGO REALTY INC Ref002389293 09/30/08 UB Refund Cst #0000127673 30.67 30.67
2014134 10/01/08 09184 SANDY MILLER Ref002389277 09/30/08 US Refund Cst #0000126196 55.32 55.32
2014478 10/22/08 09289 SANDY MILLER Ref002389861 10/20/08 US Refund Cst #0000126808 8.18 8.18
2014638 10/29/08 05321 SCHIFFASSOCIATES 02237 CREDIT MEMO (62.67)
02488 07/31/08 CIP P1043-CATHODIC PROTECTION PROGRAM 21,568.89 21,506.22
Page 24 of31
,~.,-=~~.•",=--~~._••.",=-_.~.~~,-."......"............."~~.-,,..~.-==,.,""..,.,'.....,.,,~_~~:j',t~·::;"~....~'-"'::"-~.
OTAYWATER DISTRICT
CHECK REGISTER
FOR CHECKS 2014076 THROUGH 2014657
RUN DATES 10/112008 TO 10/29/2008
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS2014076 THROUGH 2014657
RUN DATES 10/1/2008 TO 10/29/2008
OTAYWATER DISTRICT
CHECK REGISTER
FOR CHECKS 2014076 THROUGH 2014657
RUN DATES 10/1/2008 TO 10/29/2008
OTAY WATERDISTRICT
CHECK REGISTER
FOR CHECKS 2014076 THROUGH 2014657
RUN DATES 10/1/2008TO 10/29/2008
OTAYWATER DISTRICT
CHECKREGISTER
FOR CHECKS 2014076 THROUGH 2014657
RUN DATES 10/1/2008 TO 10/29/2008
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2014076 THROUGH 2014657
RUN DATES 10/1/2008 TO 10/29/2008
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2014387 10/15/08 06414 VANTAGEPOINT TRANSFERAGENTS Ben2389656 10/16/08 401A PLAN 609.93 609.93
2014655 10/29/08 01095 VANTAGEPOINT TRANSFER AGENTS Ben2390035 10/30108 DEFERRED COMP PLAN 6,819.41 6,819.41
2014388 10/15/08 02298 VASQUEZ,TADEO 000683 10/09/08 SAFETY BOOTS REIMBURSEMENT 145.44 145.44
2014311 10/08/08 03329 VERIZON WIRELESS 0693649929 09/21/08 WIRELESS DATA SERVICES 8,883.92 8,883.92
2014491 10/22/08 09251 VINCINA MORINEAU Ref002389823 10/20/08 UB Refund Cst#0000089894 7.48 7.48
2014492 10/22/08 09259 VOUGHT ENTERPRISES INC Ref002389831 10/20/08 UB Refund Cst #0000121739 718.04 718.04
2014141 10/01/08 09181 WACHOVIABANK Ref002389274 09/30/08 UB Refund Cst #0000125351 15.38 15.38
2014574 10/22/08 07595 WALTERS WHOLESALE ELECTRIC CO 281935001 10/02/08 CIRCUIT BREAKERS 62.92 62.92
2014389 10/15/08 00262 WATER AGENCIES ASSOCIATION 000682 10/06/08 QUARTERLY MEETING 240.00 240.00
2014312 10/08/08 02700 WATER CONSERVATION GARDEN OTAY20809 09/18/08 OPERATING COSTS FOR WATER GARDEN 19,687.50 19,687.50
2014224 10/01/08 00014 WAXIE SANITARY SUPPLY 70841054 09/05/08 JANITORIALSUPPLIES 1,099.49 1,099.49
2014656 10/29/08 00014 WAXIE SANITARYSUPPLY 70899203 10/07/08 JANITORIAL SUPPLIES 1,584.54
70897843 10/06/08 JANITORIAL SUPPLIES 147.79
70896222 10/06/08 JANITORIALSUPPLIES 73.64 1,805.97
2014575 10/22/08 01343 WE GOT YAPEST CONTROL 50869 09/26/08 PEST CONTROL -BEE REMOVAL 115.00 115.00
2014657 10/29/08 07946 WEST COAST ARBORISTS INC 55059 09/26/08 TREE REMOVAL 19,505.00 19,505.00
2014225 10/01/08 00190 WEST PAYMENT CENTER 816791385 09/20/08 LEGAL LIBRARY UPDATES 106.68 106.68
2014226 10/01/08 00125 WESTERN PUMP INC 00702291N 09/11/08 APCD TESTING 538.00 538.00
2014576 10/22/08 03692 WESTIN ENGINEERING INC 31666 09/30/08 CIP P1210 -ASSET MANAGEMENT PLAN 6,097.50 6,097.50
2014390 10/15/08 03437 WIENHOFF DRUG TESTING INC 20926 10/01/08 HEALTH EXAMS 330.00 330.00
2014493 10/22/08 09265 WILLIAM ABBOTT Ref002389837 10/20/08 UB Refund Cst#0000122802 28.85 28.85
2014313 10/08/08 02725 WILLIAMS SCOTSMAN INC 84756171 09/12/08 28'TRAILER RENTAL@ TREATMENT PLANT 293.85
84900769 09/18/08 MOBILE OFFICE RENTAL@ TREATMENT PLANT 288.74 582.59
2014391 10/15/08 09149 WILLIS RISK AND INSURANCE 0228856 09/24/08 BENEFITS CONSULTING 5,298.00 5,298.00
2014577 10/22/08 09149 WILLIS RISK AND INSURANCE 0228926 10/01/08 BENEFITS CONSULTING 8,750.00 8,750.00
Page 30 of31
___'·~'<'_·'·~__~'._~~",=.-=-=~,T~:~"r,=,~-=,<".=~~~,""",==~,,,.,:,==~~,~"""",,,,".=~~~',<.~.__-'~r'_:_"~-5A.::>,)i,;:a~~~
OTAY WATER DISTRICT
CHECK REGISTER
FOR CHECKS 2014076 THROUGH 2014657
RUN DATES 10/1/2008 TO 10/29/2008
Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total
2014314 10108/08 03423 WINZER CORPORATION
2014494 10/22/08 09244 YOLANDA MARTINEZ
GRAND TOTAL
3304744
Ref002389815
09/11/08 SHOP SUPPLIES
10/20108 UB Refund Cst #0000073034
368.00
109.42
3,367,593.00
368.00
109.42
3,367,593.00
Page 31 of31