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09-22-20 F&A Committee Packet
1 OTAY WATER DISTRICT FINANCE AND ADMINISTRATION COMMITTEE MEETING and SPECIAL MEETING OF THE BOARD OF DIRECTORS BY TELECONFERENCE 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA TUESDAY September 22, 2020 12:00 P.M. This is a District Committee meeting. This meeting is being posted as a special meeting in order to comply with the Brown Act (Government Code Section §54954.2) in the event that a quorum of the Board is present. Items will be deliberated, however, no formal board actions will be taken at this meeting. The committee makes recommendations to the full board for its consideration and formal action. AGENDA 1. ROLL CALL 2. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JU- RISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA In lieu of in-person attendance, members of the public may submit their comments on agendized and non-agendized items via email at boardsecretary@otaywater.gov. Public comments submitted will be read into the record at the Committee Meeting and the public may continue to watch and listen to meetings. The information on how to watch and listen to the District’s live streaming can be found at this link: https://otaywater.gov/board-of-directors/agenda-and-minutes/committee-meetings/ DISCUSSION ITEMS 3. ADOPT RESOLUTION NO. 4387 APPROVING THE AUGUST 24, 2020 PURCHASE AGREEMENT FOR $182,000 FOR THE JAMACHA BOULEVARD PROPERTY IN SPRING VALLEY AND AUTHORIZE THE GENERAL MANAGER TO COMPLETE THE SALE OF THE PROPERTY (KENNEDY) [5 minutes] 2 4. AUTHORIZE THE ISSUANCE OF PURCHASE ORDERS FOR THE PURCHASE OF SIX (6) FLEET VEHICLES TO: 1) FORD OF CHULA VISTA IN THE AMOUNT OF $102,986.76 FOR THREE (3) 2021 FORD F-150 PICK-UP TRUCKS; 2) FAIRVIEW FORD IN THE AMOUNT OF $84,056.04 FOR TWO (2) 2021 FORD F-250 PICK-UP TRUCKS; AND 3) FRITTS FORD IN THE AMOUNT OF $29,590.75 FOR ONE (1) 2021 FORD RANGER PICK-UP TRUCK. THE TOTAL AMOUNT FOR ALL SIX (6) FLEET VEHICLES IS $216,633.55 (RAHDERS) [5 minutes] 5. ANNUAL DIRECTOR’S EXPENSE REPORT FOR FISCAL YEAR 2020 (FAKHOURI) [5 minutes] 6. ADOPT ORDINANCE NO. 579 AMENDING SECTION 6, CONFLICT OF INTEREST CODE, CONTAINED WITHIN THE DISTRICT’S CODE OF ORDINANCES TO UPDATE THE POSITION TITLES REQUIRED TO FILE A FORM 700; TO INCLUDE THE POLITICAL REFORM ACT (GOVERNMENT CODE SECTION 8100, et seq.) LANGUAGE WITHIN THE DISTRICT’S CODE; AND TO UPDATE THE APPENDIX TO REFLECT CURRENT STATUTE LANGUAGE (CRUZ) [5 minutes] 7. YEAR-END REPORT ON THE DISTRICT’S FISCAL YEARS 2019-2022 STRATEGIC PERFORMANCE PLAN FOR FISCAL YEAR 2020 (KERR) [15 minutes] 8. ADJOURNMENT BOARD MEMBERS ATTENDING: Mitch Thompson, Chair Mark Robak All items appearing on this agenda, whether or not expressly listed for action, may be delib- erated and may be subject to action by the Board. The Agenda, and any attachments containing written information, are available at the Dis- trict’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 par- ticipate in this meeting, please call the District Secretary at 670-2280 at least 24 hours prior to the meeting. Certification of Posting I certify that on September 18, 2020 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 24 hours in advance of the meeting of the Board of Directors (Government Code Section §54954.2). Executed at Spring Valley, California on September 18, 2020. /s/ Susan Cruz, District Secretary STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 7, 2020 SUBMITTED BY: Bob Kennedy Engineering Manager PROJECT: P1210-018000 DIV. NO.5 APPROVED BY: Rod Posada, Chief, Engineering Jose Martinez, General Manager SUBJECT: Adopt Resolution No. 4387 Approving the August 24, 2020 Purchase Agreement for $182,000.00 for the Jamacha Boulevard Property in Spring Valley and Authorize the General Manager to Complete the Sale of the Property GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) adopt Resolution No. 4387 approving the August 24, 2020 Purchase Agreement for $182,000.00 for the Jamacha Boulevard property in Spring Valley and to authorize the General Manager to enter into escrow to complete the sale of the property (see Exhibit A for District property location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To request the Board to approve the August 24, 2020 Purchase Agreement for $182,000.00 for the Jamacha Boulevard property in Spring Valley and to authorize the General Manager to enter into escrow to complete the sale of the property. Board adoption of Resolution No. 4387 (Attachment B) will meet the terms of theAugust 24, 2020 Purchase Agreement to expedite the sale of the property. AGENDA ITEM 3 2 ANALYSIS: As a regular course of business, the District periodically reviews the need and use of real estate (property) it owns. This is done to ensure that the District’s current and future property needs are provided for, and that property that is no longer required is disposed of, in order to minimize costs and associated liabilities of property ownership. The retention of real property that is surplus to the District’s needs increases the operating expense by increasing the requirement to maintain and manage the property. After an evaluation of District-owned properties, staff identified the Jamacha Boulevard property in Spring Valley as not required for District use and on January 2, 2019 the Board adopted Resolution No. 4355 declaring this surplus property and directed staff to solicit offers for the surplus property. On February 22, 2019, staff solicited offers for the lease or sale of the surplus properties from Preferred Entities of the opportunity to purchase or lease the properties for specified priority uses, as required by Government Code § 54222 et seq. On April 9, 2019, the District received an appraisal of the Jamacha Boulevard property in Spring Valley from Anderson & Brabant, Inc. (see Exhibit B) that valued the property at $100,000. This appraisal was performed to assist the District in determining the market value of the subject property. Staff did not receive any offers for the Jamacha Boulevard property in Spring Valley from any Preferred Entities, and on May 21, 2019, staff advertised for the service of a real estate broker (Broker) with experience in dealing in commercial and residential real estate. On August 14, 2019, the District signed a Sales Listing Agreement with Pacific Coast Commercial (PCC) to provide Broker services for the District (see Exhibit C). PCC prepared a broker’s opinion and recommended a listing price of $150,000.00. PCC prepared the property’s marketing program and listed the property on August 26, 2019 (see Exhibit D). The District received this offer on the property on August 24, 2020, which was approved by the prospective buyer, Dan Miller, for $182,000, subject to the terms of the Purchase Agreement and the approval by the Board (see Exhibit E). 3 FISCAL IMPACT: Joe Beachem, Chief Financial Officer Acceptance of this offer will result in revenue of approximately $182,000.00, less the cost of surveying the property, relocating a fence, escrow, and closing costs. This property was used for potable purposes and the proceeds will be credited back to the potable general fund. The Engineering Outside Services budget covered the cost of appraisal services, boundary adjustment preparation, legal descriptions, filing the certificate of compliance, and the County of San Diego plan review services. Currently, Engineering’s expenses have not exceeded anticipated expenses and it is expected that there will be sufficient funds available to offset the expected costs. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide exceptional water and wastewater service to its customers, and to manage District resources in a transparent and fiscally responsive manner” and the District’s Vision, “To be a model water agency by providing stellar service, achieving measurable results, and continuously improving operational practices.” LEGAL IMPACT: None. BK/RP:jf P:\Public-s\Real Estate Services\4 Surplus Properties - Jan 2019\Staff Reports\Staff Report 10-07-20\BD 10-07-20 Approve PA for Jamacha Blvd - Staff Report.docx Attachments: Attachment A – Committee Action Attachment B – Resolution No. 4387 Exhibit A – Jamacha Blvd. Property Location Map Exhibit B – Jamacha Blvd. Property Appraisal Exhibit C – Sales Listing Agreement Exhibit D – Jamacha Blvd. Property Marketing Program Exhibit E – Jamacha Blvd. Property Purchase Agreement ATTACHMENT A SUBJECT/PROJECT: P1210-018000 Adopt Resolution No. 4387 Approving the August 24, 2020 Purchase Agreement for $182,000.00 for the Jamacha Boulevard Property in Spring Valley and Authorize the General Manager to Complete the Sale of the Property COMMITTEE ACTION: The Finance and Administration Committee (Committee) reviewed this item at a meeting held on September 22, 2020. The Committee supported staff’s recommendation. NOTE: The “Committee Action” is written in anticipation of the Committee moving the item forward for Board approval. This report will be sent to the Board as a Committee approved item, or modified to reflect any discussion or changes as directed from the Committee, prior to presentation to the full Board. 1 OTAY WATER DISTRICT RESOLUTION NO. 4387 DECLARATION OF THE BOARD OF TRUSTEES APPROVING THE AUGUST 24, 2020 PURCHASE AGREEMENT FOR $182,000 FOR THE SALE OF THE JAMACHA BOULEVARD PROPERTY IN SPRING VALLEY AND AUTHORIZING THE GENERAL MANAGER TO COMPLETE THE SALE OF THE PROPERTY WHEREAS, pursuant to California Water Code Section 31041, the Otay Water District (“District”) is empowered to dispose of District property; and WHEREAS, the District is the owner in fee simple of real property designated as a portion of the Jamacha Boulevard parcels (APN 505-672-20 and a portion of APN 505- 672-19) comprising a total of approximately 0.23 acres of land and located in the County of San Diego, California (“Property”); and WHEREAS, said Property is described in Exhibit “A” attached hereto and incorporated herein by this reference; and WHEREAS, the District Code of Ordinances Section 4.05 provides for the disposal of surplus property; and WHEREAS, the Board of Directors considered a report from staff supported by written findings and, on January 2, 2019, in a regular public meeting, adopted Resolution No. 4355 declaring this Property as surplus property and directed staff to solicit offers for the disposition of the surplus property in accordance with the procedures specified in The Surplus Land Act, Government Code Section 54220 et seq.; and WHEREAS, California Government Code Section 54220 et seq. establishes procedures and requirements for the disposition of surplus land owned by local agencies, including, but not limited to, a local agency’s responsibility to make written offers to sell surplus property to various state, county, and local entities, and a local agency’s right to sell the property at fair market value if staff receives no offers for the surplus property; and WHEREAS, the District made written offers to sell the Property to the appropriate state, county, and local entities, and received no offers for the Property; and WHEREAS, the District made the Property available to the general public through a competitive bidding process; and WHEREAS, the Board of Directors has considered a report from staff on the August 24, 2020 Purchase Agreement for the sale of the Property for the sum of $182,000. ATTACHMENT B 2 NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Otay Water District that the District’s real property designated as a portion of the Jamacha Boulevard parcels (APN 505-672-20 and a portion of APN 505-672-19) comprising a total of approximately 0.23 acres of land and located in the County of San Diego, California, and described in Exhibit “A”, is surplus property because it is not, and will not, be needed by the District and is surplus to the District's needs; and BE IT FURTHER RESOLVED that the Board of Directors of the Otay Water District approves the August 24, 2020 Purchase Agreement for $182,000 and authorizes the General Manager to enter into escrow and complete the sale of the Property; and BE IT FURTHER RESOLVED that if the escrow for the sale of this Property is not completed, the General Manager is hereby authorized to make the Property available to the general public through a competitive bidding process and is directed to bring any future offers and bids on said Property to the Board of Directors for approval and award of bid. PASSED AND ADOPTED by the Board of Directors of the Otay Water District, County of San Diego, State of California, on the 7th day of October 2020, by the following vote of the members thereof: AYES: NOES: ABSTAIN: ABSENT: ________________________________ President Attest: _______________________ District Secretary OTAY WATER DISTRICTOWD PARCEL 505-672-38-00 LOCATION MAP May 2020F P:\ P u b l i c - s \ R e a l E s t a t e S e r v i c e s \ 4 S u r p l u s P r o p e r t i e s - J a n 2 0 1 9 \ E x h i b i t s \ J a m a c h a B l v d P r o p e r t y . m x d "` 33 ¹r l? l? l? l? l? l? l? l?îîSRP Legend SURPLUS PROPERTY: 0.23 ACRES (approx) PARCEL LINES 0 10050 Feet 850-657 PRS 100' ( a p p r o x ) 100' ( a p p r o x ) ROW 5056723900 5056723800 5056720900 5056720300 5056721000 EXHIBIT A !\ VICINITY MAP PROJECT SITE NTSDIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ?ò Aä%&s ?p ?Ë JAM A C H A B L V D F APPRAISAL REPORT OTAY WATER DISTRICT SURPLUS PROPERTY ±10,000 SQUARE FOOT PARCEL JAMACHA BOULEVARD SPRING VALLEY, CALIFORNIA APPRAISED FOR Mr. Bernardo Separa Senior Engineering Technician OTAY WATER DISTRICT 2554 Sweetwater Springs Boulevard Spring Valley, CA 91978 DATE OF VALUATION April 9, 2019 DATE OF REPORT April 24, 2019 APPRAISED BY Anderson & Brabant, Inc. 353 West Ninth Avenue Escondido, California 92025 File No. 19-028 EXHIBIT B ANDERSON & BRABANT, INC. REAL ESTATE APPRAISERS AND CONSULTANTS 353 W. NINTH AVENUE ESCONDIDO, CALIFORNIA 92025-5032 TELEPHONE (760) 741-4146 FAX (760) 741-1049 April 24, 2019 Mr. Bernardo Separa Senior Engineering Technician OTAY WATER DISTRICT 2554 Sweetwater Springs Boulevard Spring Valley, CA 91978 RE: Valuation of ±10,000 square foot site Surplus property owned by Otay Water District Southeast side of Jamacha Boulevard Spring Valley, California 91978 Dear Mr. Separa: As requested, we have estimated the market value of the above-referenced parcel of vacant land located in Spring Valley, California on the southeast side of Jamacha Boulevard. This is a surplus property held in title by Otay Water District. The date of value is April 9, 2019. This is recognized as an Appraisal Report under the Uniform Standards of Professional Appraisal Practice (USPAP). As such, the report is intended to comply with the requirements set forth under Standards Rule 2-2(a) of USPAP. It has also been prepared in conformance with the Code of Ethics and Standards of Valuation Practice of the Appraisal Institute. Based on a thorough investigation and analysis of appropriate data as they relate to the subject, we have arrived at the following opinion of value for the property, set forth as of the above- referenced date. ONE HUNDRED THOUSAND DOLLARS ($100,000) The preceding conclusion is subject to certain assumptions and limiting conditions as set forth in the attached report. Thank you for this opportunity to be of service. Respectfully submitted, ANDERSON & BRABANT, INC. David C. Ottley, MAI William B. Anderson, MAI, SRA BREA Certification No. AG002149 BREA Certification No. AG002315 ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. TABLE OF CONTENTS EXECUTIVE SUMMARY ......................................................................................................... 1 ASSUMPTIONS AND LIMITING CONDITIONS ................................................................. 2 APPRAISERS’ SIGNED CERTIFICATIONS ........................................................................ 4 INTRODUCTION Identification of the Property ................................................................................................... 6 Purpose of the Assignment ...................................................................................................... 6 Exposure Time ......................................................................................................................... 6 Effective Date of Value Opinion ............................................................................................. 7 Date of Report ......................................................................................................................... 7 Client ....................................................................................................................................... 7 Intended Use and User ............................................................................................................. 7 Property Rights Appraised ...................................................................................................... 7 Extraordinary Assumptions ..................................................................................................... 7 Hypothetical Conditions .......................................................................................................... 7 Scope of Work ......................................................................................................................... 8 Report Option .......................................................................................................................... 8 Sales History of the Subject Property ...................................................................................... 9 Past Appraisal Services ........................................................................................................... 9 Location Map ........................................................................................................................... 10 Location Description ............................................................................................................... 11 DESCRIPTION OF REAL ESTATE APPRAISED Aerial Photograph of the Subject Property .............................................................................. 13 Subject Property Photographs ................................................................................................. 14 Plat Map ................................................................................................................................... 17 Land Description ..................................................................................................................... 18 Improvement Description ........................................................................................................ 20 Assessment Data ...................................................................................................................... 20 VALUATION Highest and Best Use ............................................................................................................... 21 Valuation Methodology ........................................................................................................... 22 Sales Comparison Approach ................................................................................................... 22 ADDENDA Aerial and Ground Level Photographs – Market Data Preliminary Title Reports Qualifications of the Appraisers ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 1 EXECUTIVE SUMMARY Property Location: Southeast side of Jamacha Boulevard Spring Valley, California 91978 Fee Owner of Record: Otay Water District Assessor Parcel Nos.: 505-672-20-00 and a portion of 505-672-19-00 Thomas Bros. Map Code: 1291-F1 Property Type: Vacant land Interest Appraised: Fee Parcel Size: 10,000 square feet Zone: M58 and C30, County of San Diego General Plan: Public/Semi-Public Facilities, County of San Diego Flood Zone: Outside of a FEMA flood hazard zone according to County of San Diego online mapping services. Please note, however, that the southeast side of the site is designated wetlands based on the County of San Diego Initial Study Research Packet. Earthquake Fault Zone: No Toxic Hazards: None noted Improvements: None Highest and Best Use: Development with small industrial or commercial use Date of Valuation: April 9, 2019 Date of Report: April 24, 2019 Estimated Market Value: $100,000 Exposure Time: Up to 12 months Special Assumptions and Hypothetical Conditions: (see page 2) ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 2 ASSUMPTIONS AND LIMITING CONDITIONS This appraisal is subject to the following special assumptions and limiting conditions: 1. This Appraisal Report is intended to comply with the reporting standards set forth by the Uniform Standards of Professional Appraisal Practice (USPAP). It presents brief discussions of the data, reasoning and analyses that were used in the appraisal process to develop the appraisers’ opinion of value. In some instances, supporting documentation concerning data, reasoning, and analyses has been retained in the appraisers’ file. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. The appraisers are not responsible for the unauthorized use of this report. 2. It is assumed that the existence of significant cultural resources, if any, discovered within the subject parcel will not create any abnormal hardship nor measurably impact market value in conjunction with our determination of highest and best use. 3. The subject is an approximate 10,000 square foot portion of a greater site that is held in title by Otay Water District. Our estimate of value for the property is based on the assumption and hypothetical condition that the approximate 10,000 square foot subject site is a separate and independently marketable parcel as of the date of value stated herein. 4. The subject property encompasses a portion of Assessor Parcel Number 505-672-19-00, and all of Assessor Parcel Number 505-672-20-00. We were provided with preliminary title reports relating to all of Parcels 505-672-19-00 and 20-00. The two reports were prepared by First American Title Company, are dated January 25, 2019, and can be identified by reference to Order Nos. DIV-5854433 and DIV-5854434. Copies of the title documents are included in the Addenda section of this report. Two easements for public utilities are set forth in the title reports, but the locations of these encumbrances could not be determined by the title company. For purposes of this appraisal, the assumption is made that the existence of these two existing easements does not negatively impact the use or value of the subject in accordance with its estimated highest and best use. 5. The subject has 100 feet of direct frontage on Jamacha Boulevard, a well-travelled County roadway. According to Mr. Richard Chin, Public Works Project Manager for the County of San Diego, the specific subject site is not required to be served from an interior roadway. Nevertheless, if possible, the County’s preference is to have a combined driveway for the subject and the portion of the land to be retained by Otay Water District. As of the date of this appraisal, the subject is a portion of a greater landholding held in title by the water district that is accessed from a point along Jamacha Boulevard at the far westerly point of the property. A representative of the water district has indicated that they will not furnish access over the segment of the site to be retained by the district. Our final estimate of value for the subject is based on the assumption and hypothetical condition that the property is legally accessible from any point along its direct frontage on Jamacha Boulevard. 6. No Phase I Environmental Site Assessment was furnished that would verify the existence or absence of toxic materials. In this appraisal, it is assumed that there are no hidden or unapparent hazardous or other toxic subsoil conditions that would render the sites more or less valuable. No responsibility is assumed for such conditions or for engineering that might ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 3 be required to discover such factors and we have assumed that the sites could be developed to their highest and best use. This appraisal is subject to the following general assumptions and limiting conditions: 1.It is assumed that information furnished to us by our client, including maps, and legal descriptions, is substantially correct. 2.No responsibility is assumed for matters legal in character, nor do we render an opinion as to title, which is assumed to be held in fee simple interest as of the date of valuation unless otherwise specified. 3.It is assumed that the property is readily marketable, free of all liens and encumbrances except any specifically discussed herein, and under responsible ownership and management. 4.Photographs, maps and other exhibits furnished in this appraisal are to assist the reader in visualizing the property. No surveys of the property have been made and no responsibility has been assumed in this matter. 5.Disclosure of the contents of this appraisal report is governed by the by-laws and regulations of the Appraisal Institute. Neither all nor any part of the contents of this report (especially reference to the Appraisal Institute or the MAI designation) shall be disseminated to the public through advertising media, public relations media, news media, sales media, or any other public means of communication without prior written consent and approval ofAnderson and Brabant, Inc. 6.The submission of this report constitutes completion of the services authorized. It is submitted on the condition that the client will provide the appraiser customary compensation relating to any subsequent required depositions, conferences, additional preparation or testimony. 7.The valuation estimate is of surface rights only and the mineral rights, if any, have been disregarded. 8.No warranty is made as to the seismic stability of the subject property. 9.It is assumed that all required licenses, or other legislative or administrative permits from any local, state, or national governmental or private entity or organization can be obtained for anyuse on which the value estimate contained in this report is based. ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 4 APPRAISER’S SIGNED CERTIFICATION I do hereby certify that, to the best of my knowledge and belief … 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions and conclusions. 3. I have no present or prospective future interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the property or parties involved with this assignment. 4. I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three (3) year period immediately preceding acceptance of this assignment. 5. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. My compensation for completing this assignment is not contingent upon the developing or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 7. The appraisal was developed and the appraisal report was prepared in conformity with the Appraisal Standards Board’s Uniform Standards of Professional Appraisal Practice (USPAP), and the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute. 8. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 9. I made a personal inspection of the property which is the subject of this report. A representative of the property ownership accompanied the appraiser on the onsite inspection. 10. No one provided significant real property appraisal assistance to the persons signing this appraisal report. 11. As of April 24, 2019, the date of this report, I have completed the continuing education program for Designated Members of the Appraisal Institute. David C. Ottley, MAI Certified General Real Estate Appraiser BREA Appraiser No. AG002149 Expires November 14, 2018 ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 5 APPRAISER’S SIGNED CERTIFICATION I do hereby certify that, to the best of my knowledge and belief … 1.The statements of fact contained in this report are true and correct. 2.The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiasedprofessional analyses, opinions and conclusions. 3.I have no present or prospective future interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the property or parties involved with this assignment. 4.I have performed no services, as an appraiser or in any other capacity, regarding the propertythat is the subject of this report within the three (3) year period immediately preceding acceptance of this assignment. 5.My engagement in this assignment was not contingent upon developing or reporting predetermined results. 6.My compensation for completing this assignment is not contingent upon the developing orreporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 7.The appraisal was developed and the appraisal report was prepared in conformity with the Appraisal Standards Board’s Uniform Standards of Professional Appraisal Practice(USPAP), and the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute. 8.The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 9.I did not make a personal inspection of the property which is the subject of this report duringthe course of the current valuation analysis. 10.No one provided significant real property appraisal assistance to the persons signing this appraisal report. 11.As of April 24, 2019, the date of this report, I have completed the continuing education program for Designated Members of the Appraisal Institute. William B. Anderson, MAI, SRA Certified General Real Estate Appraiser BREA Appraiser No. AG002315 Expires May 31, 2020 ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 6 INTRODUCTION IDENTIFICATION OF THE PROPERTY The subject consists of a square shaped, ±10,000 square foot parcel of vacant land located in the unincorporated San Diego County community of Spring Valley, California on the southeast side of Jamacha Boulevard. Legal Description The subject is legally described, in brief, as A portion of Lot 41 of Sweetwater Springs according to Map thereof No. 576 on file in the Office of the Recorder of San Diego County. A complete legal description of the property and adjoining land under common ownership is found within two preliminary title reports, copies of which are included in this appraisal as attachments. The land can be further identified as Assessor Parcel Number 505-672-20-00 and a portion of Assessor Parcel Number 505-672-19-00. Ownership Title to the subject property is currently held as follows: OTAY WATER DISTRICT. PURPOSE OF THE ASSIGNMENT The purpose of this appraisal assignment is to estimate the market value of the subject property. Market value is a type of value, stated as an opinion, that presumes the transfer of a property (i.e., a right of ownership of a bundle of such rights), as of a certain date, under specific conditions set forth in the following definition: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently, knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1.Buyer and seller are typically motivated; 2.Both parties are well-informed or well-advised, and each acting in what he or she considers his or her own best interest; 3. A reasonable time is allowed for exposure in the open market; 4.Payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and 5.The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. 1 EXPOSURE TIME The value estimate reflects a reasonable exposure time for the subject land estimated at up to 12 months as of the valuation date. According to the Uniform Standards of Professional 1 The Appraisal of Real Estate, 14th ed. (Chicago: Appraisal Institute, 2013), p. 59 ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 7 Appraisal Practice, Exposure Time is the estimated length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective opinion based on an analysis of past events assuming a competitive and open market. EFFECTIVE DATE OF VALUE OPINION The effective date of the opinion of value expressed herein is April 9, 2019. DATE OF REPORT The date of this appraisal report is April 24, 2019. CLIENT The client is the Otay Water District. INTENDED USE AND USER The intended use of this report is to assist the client, the Otay Water District, in determining the market value of the subject property for potential disposition purposes. Any other party who may receive this report is not an intended user, and we are not responsible for unauthorized use of this report. PROPERTY RIGHTS APPRAISED The reported estimate of market value reflects the fee property interest as set forth in provided preliminary title reports, subject to all easements of record. EXTRAORDINARY ASSUMPTIONS An extraordinary assumption is defined as an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraisers’ opinions or conclusions. No extraordinary assumptions were considered in this analysis; nevertheless, this appraisal is subject to certain special and general assumptions as outlined on pages 2 and 3 of this report. HYPOTHETICAL CONDITIONS A hypothetical condition is defined as a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. The subject is an approximate 10,000 square foot portion of a greater site that is held in title by Otay Water District. Our estimate of value for the property is based on the assumption and hypothetical condition that the approximate 10,000 square foot subject site is a separate and independently marketable parcel as of the date of value stated herein. The subject has 100 feet of direct frontage on Jamacha Boulevard, a well-travelled County roadway. According to Mr. Richard Chin, Public Works Project Manager for the County of San Diego, the specific subject site is not required to be served from an interior roadway. Nevertheless, if possible, the County’s preference is to have a combined driveway for the subject ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 8 and the portion of the land to be retained by Otay Water District. As of the date of this appraisal, the subject is a portion of a greater landholding held in title by the water district that is accessed from a point along Jamacha Boulevard at the far westerly point of the property. A representative of the water district has indicated that they will not furnish access over the segment of the site to be retained by the district. Our final estimate of value for the subject is based on the assumption and hypothetical condition that the property is legally accessible from any point along its direct frontage on Jamacha Boulevard. SCOPE OF WORK Critical elements to this appraisal assignment are the identification of the client(s), intended use and user(s), type and definition of value, the effective date of the appraisal, and assignment conditions. These were addressed previously in this report. Another important element is to include relevant characteristics pertaining to the subject property, which are outlined in detail in a later section of the appraisal. In preparing this appraisal, the following steps were taken. •A preliminary survey of the subject property and market area was conducted in order tomore accurately define the appraisal problem and identify the methods and techniques necessary to accomplish the objective of this appraisal report. •Legal aspects of the subject property were investigated regarding their potential uses withinthe context of the surrounding area. Among other things, we reviewed County of SanDiego zoning and General Plan summaries and requirements. •We reviewed and analyzed various documents provided by the client including a preliminary title report, site layout, and other documents. •The subject property was inspected by David C. Ottley, MAI of Anderson and Brabant, Inc.on April 9, 2019. •The three traditional approaches to value include the Cost, Sales Comparison, and Income Approaches. Of these three, only the Sales Comparison was considered to have specific applicability in the valuation of the subject parcel as it consists of vacant land. Upondetermination of highest and best use, reliable market data were analyzed on the basis of their overall degree of comparability to the appraised property. •A detailed search of the primary market area of the subject property was performed in order collect relevant sales. Sources of data included the County Recorder's office, variousmarket data services, published reports, and personal contacts. These data were confirmed with principals, their representatives, or agents. In order to obtain a thorough understanding of real estate market trends in the subject area, interviews were conducted with numerous local market participants, including real estate agents, and investors. •The final step entailed the organization and drafting of the Appraisal Report. REPORT OPTION This is an Appraisal Report as defined by the Uniform Standards of Professional Appraisal Practice (USPAP). It presents summary discussions of the data, reasoning and analyses that were used in the appraisal process to develop the appraisers’ opinion of value. ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 9 SALES HISTORY OF THE SUBJECT PROPERTY According to public records, the subject has not been involved in a conventional sale transfer within the past three year period, and it is not presently offered for sale on the open market. PAST APPRAISAL SERVICES We have performed no services, as appraisers or in any other capacity, regarding the property that is the subject of this report within the three (3) year period immediately preceding acceptance of this assignment. ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 10 ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 11 LOCATION DESCRIPTION The subject property is located in the unincorporated community of Spring Valley in South San Diego County. San Diego County is the second largest county in the State of California based on population which, as of January 1, 2018, was estimated by the California Department of Finance Demographic Research Unit at 3,337,456 persons. This reflects an increase of about 0.8 percent from the January 1, 2017 total of 3,309,509. Region The County includes the State's second most populous city and offers such geographic features as mountainous regions of the Cleveland National Forest, the Anza Borrego Desert, the International Border with Mexico, and over 50 miles of Pacific Ocean coastline. These features, and the area's temperate year-round climate, are among the county's major attractions. Most of the county's population is located along the coastal region, inland valleys, and foothills, within approximately 25 to 30 miles of the ocean. The mountains and deserts are only sparsely developed and populated. On a regional basis, San Diego County is served by three major freeways. These include Interstate 5, a coastal route connecting San Diego with Baja California to the south and the states of California, Oregon, and Washington to the north; Interstate 8, a major east-west route connecting San Diego with Arizona and other southwestern states to the east; and Interstate 15, an inland route connecting San Diego with Riverside and San Bernardino Counties and other points to the northeast. There are several important local freeways that provide access within the region. These include Interstate 805 that runs inland from and parallel to Interstate 5; State Route 94, parallel to Interstate 8; State Route 163, connecting Interstate 15 with Downtown San Diego; and State Route 78, the major east-west freeway in northern San Diego County. San Diego International Airport (Lindbergh Field) is located about 70 miles to the west of the subject and is close to Downtown San Diego. This airport is serviced by 18 commercial airlines and four scheduled air-freight services. There are an additional eight small public airports located throughout the county. There is little commercial air activity at these facilities. Rail service is provided by San Diego and Arizona Eastern Railroad, Santa Fe Railroad, and Amtrak. Industrial/commercial use of the rail lines for freight carriage has declined in San Diego over the past 15+ years. However, the Amtrak line between San Diego and Los Angeles is popular with commuters. The San Diego Trolley (light rail transit system) has opened several commuter routes in the southern and eastern portions of San Diego County that have proven very popular. Individual transit districts throughout the county provide local bus service. The economy within the San Diego region has improved since experiencing a global financial crisis, considered the worst of its kind since the Great Depression. The poor economic conditions became prominently visible in the past decade with the failure, merger or conservatorship of several large United States-based financial firms. The underlying causes leading to the crisis had been reported in business journals with commentary about the financial stability of leading United States and European investment banks, insurance firms and mortgage banks consequent to the subprime mortgage crisis that commenced in 2007. The failures of large financial institutions in the United States and Europe led to dramatic declines in various stock indexes and significant reductions in the market-value of equities (stock) and commodities worldwide. The crisis led to a liquidity problem and the de-leveraging of financial institutions, ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 12 especially in the United States and Europe, which further accelerated the liquidity crisis. World political leaders, national ministers of finance, and central bank directors coordinated efforts to reduce economic fears. Along with the economic downturn came a marked increase in unemployment. The downturn was then followed by an economic recovery with the stock market reaching record highs, increases in home values, and rising apartment and home rental rates. Optimism as to a growing economy has been further evidenced in notably improved employment statistics. Based on statistical data from the California Employment Development department, the unemployment rate in San Diego County in February 2019 was 3.5 percent. This is low, and unchanged from the rate of 3.5 percent one year earlier. The San Diego County unemployment rate in February 2019 was below both the state level of 4.2 percent and the national rate of 3.8 percent. Community and Neighborhood The subject is located in the Spring Valley community of San Diego County. Spring Valley is a census-designated place (CDP) in San Diego County located approximately ten miles to the east of downtown San Diego, east of State Route 125, and south of State Route 94. It encompasses approximately eleven square miles including La Presa and portions of Casa de Oro. Spring Valley is bounded on the northwest by the city of La Mesa, on the west by the city of Lemon Grove, on the south by the City of San Diego, and on the east by unincorporated areas of San Diego County. The 2016 population of Spring Valley (91977 and 91978 zip codes) was 72,899. Municipal services to Spring Valley are provided by San Diego County. Water services are provided by the Otay and Helix Water Districts and the Sweetwater Authority. Police service is provided by the San Diego County Sheriff and the California Highway Patrol. The San Miguel Consolidated Fire Protection District serves fire defense needs. Most of the land area within Spring Valley is developed with single-family residential uses, but there are over 1,000 businesses in the community ranging from small, family oriented enterprises to heavy industrial. Spring Valley currently has no downtown area, but there are two major business areas. One is the former downtown area on Bancroft Drive from State Route 94 down to Troy Street and on to Sweetwater Road, and the other is in the area known as La Presa in the southeastern portion from approximately Omega Street south to Sweetwater Road. Specifically, the subject property is located in southeast Spring Valley, on the southeast side of Jamacha Boulevard, just to the southwest of the signalized intersection of Sweetwater Springs Boulevard and Jamacha Boulevard. The area immediately surrounding the subject mostly consists of vacant and hilly terrain, much of which is designated open space. Residential neighborhoods are found further north and south, with some mobile home parks and self-storage projects a short distance to the northeast. A few properties to the north and northeast are developed with commercial and industrial uses, oriented toward Jamacha Boulevard and Sweetwater Springs Boulevard. Monte Vista (public) High School is within less than one mile to the north along Sweetwater Springs Boulevard. State Route 94, which provides convenient access to Downtown San Diego to the west, is accessed about one and one-half miles either to the east from Jamacha Boulevard, or to the north from Sweetwater Springs Boulevard. ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 13 AERIAL PHOTOGRAPH OF THE SUBJECT PROPERTY ← North ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 14 (Taken By David C. Ottley, MAI on April 9, 2019) SUBJECT PROPERTY PHOTOGRAPHS The two photos on this page were taken from the northernmost corner of the subject property. The upper photo is directed to the southeast over the north side of the lot, and the lower photo was taken while looking to the south over the parcel. ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 15 (Taken By David C. Ottley, MAI on April 9, 2019) SUBJECT PROPERTY PHOTOGRAPHS These two photos were taken from the westernmost corner of the subject parcel. The upper photo is directed to the east over the center of the lot, while the lower photo was taken while looking to the southeast over southernmost side of the site. ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 16 (Taken By David C. Ottley, MAI on April 9, 2019) SUBJECT PROPERTY PHOTOGRAPHS Looking northeasterly toward the subject site, a surplus parcel held in title by Otay Water District, from a point to the southwest that is to remain under the district ownership. View northeasterly along Jamacha Boulevard from the subject location. The appraised parcel is visible at the right. ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 17 PLAT MAP The appraised parcel is highlighted in orange. ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 18 DESCRIPTION OF REAL ESTATE APPRAISED LAND DESCRIPTION Size and Shape The subject consists of a square shaped parcel of vacant land that is about 10,000 square feet in size with approximate dimensions of 100 feet by 100 feet, per information provided by the client. An Assessor Plat Map on page 17 provides an illustration of the site configuration. Topography The majority of the subject parcel features gently sloping topography, with a moderately to steeply sloping bank along much of its street side. Overall, the property slopes downward from the level of Jamacha Boulevard and also from northeast to southwest. The subject property is outside of a FEMA flood hazard zone according to County of San Diego online mapping services. Please note, however, that the southeast side of the site is designated wetlands based on the County of San Diego Initial Study Research Packet. Flood Zone Designation Soil Conditions We were not furnished with any recently prepared studies relating to subsurface soil conditions associated with the subject property. As part of this appraisal analysis, we have assumed that soil conditions are adequate to allow legally permitted uses of the property in accordance with its estimated highest and best use. Toxic Hazard No Phase I Environmental Site Assessment was furnished that would verify the existence or absence of toxic materials. Our opinion as to the value of the subject property reflects the assumption that there are no toxic wastes on or in the land that would negatively impact its value or use. Seismic Hazard The subject property is not within an “Earthquake Fault Zone” as designated by the California State Division of Mines and Geology. However, the property is located in an area that is prone to seismic events, a condition that it shares with other properties located in the general Southern California area. Utilities All public utilities are available to the subject parcel. These include water, electrical power, natural gas, sewer, and cable. Access The subject is a square shaped parcel with 100 feet of direct frontage on the southeast side of Jamacha Boulevard, an asphalt paved public roadway with asphalt curbing and two traffic lanes in each direction plus two northeast bound turn lanes that approach the signalized intersection of the street with Sweetwater Springs Boulevard a short distance to the northeast. Jamacha Boulevard was previously a state highway, and it has since been placed under the ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 19 jurisdiction of the County of San Diego. According to Mr. Richard Chin, Public Works Project Manager for the County of San Diego, the specific subject site is not required to be served from an interior roadway. Nevertheless, if possible, the County’s preference is to have a combined driveway for the subject and the portion of the land to be retained by Otay Water District. As of the date of this appraisal, the subject is a portion of a greater landholding held in title by the water district that is accessed from a point along Jamacha Boulevard at the far westerly point of the property. A representative of the water district has indicated that they will not furnish access over the segment of the site to be retained by the district. As stated previously, our final estimate of value for the subject is based on the assumption and hypothetical condition that the property is legally accessible from any point along its direct frontage on Jamacha Boulevard. The engineering of physical access to the subject parcel from Jamacha Boulevard could be a challenge due to the differences in elevation between the street and the bulk of the site. Based on our observations, the most gentle transition point from the street is toward the northernmost point of the lot. It appears that the creation of the driveway will likely result in the reduction of usable site area, which could limit use options as the entire site is rather small. Furthermore, the elevation transition between Jamacha Boulevard and the parcel will potentially restrict accessibility from some larger vehicles. Land Use The approximate 7,500 square foot southwest portion of the subject property is zoned M58, High Impact Industrial, by the County of San Diego, while the balance of 2,500 square feet (25 feet by 100 feet) is zoned C30, Office Professional. Among other things, the M58 zone allows unenclosed commercial and industrial operations including construction sales and services. Uses permitted in the C30 zone include administrative and professional offices and other limited commercial uses. The General Plan designation for the entire property is Public/Semi-Public Facilities, which identifies major facilities built and maintained for public use. Examples include institutional uses, academic facilities, governmental complexes, and community service facilities, such as County airports, public schools, correctional institutions, solid waste facilities, water facilities, and sewer facilities. This designation may include privately owned facilities built and maintained for public use. A maximum floor area ratio (FAR) of 0.50 is permitted by this designation. Easements and Encumbrances The subject property encompasses a portion of Assessor Parcel Number 505-672-19-00, and all of Assessor Parcel Number 505-672-20-00. We were provided with preliminary title reports relating to all of Parcels 505-672-19-00 and 20-00. The two reports were prepared by First American Title Company, are dated January 25, 2019, and can be identified by reference to Order Nos. DIV-5854433 and DIV-5854434. Copies of the title documents are included in the Addenda section of this report. Two easements for public utilities are set forth in the title reports, but the locations of these encumbrances could not be determined by the title company. For purposes of this appraisal, the assumption is made that the existence of these two existing easements does not negatively impact the use or value of the subject in accordance with its estimated highest and best use. ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 20 IMPROVEMENT DESCRIPTION With the exception of some perimeter fencing surrounding most of Assessor Parcel Numbers 505-672-19-00 and 20-00, the subject property is comprised of an unimproved parcel of land. ASSESSMENT DATA The subject includes all of Assessor Parcel Number 505-672-20-00 and a portion of Parcel Number 505-672-19-00. The land is owned by Otay Water District and is not assessed or taxed. The Tax Rate Area for the land is 83213, and properties in this area are subject to a tax rate of 1.15603 percent, or $1.15603 per $100 of the assessed value, for the year 2018/2019 plus additional bonded indebtedness. ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 21 VALUATION HIGHEST AND BEST USE Highest and Best Use is an important concept in real estate valuation as it represents the premise upon which value is based. As used in this report, Highest and Best Use is defined as follows. “The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legally permissible, physical possibility, financial feasibility, and maximum productivity.” 2 The conclusion of highest and best use is determined by social, economic, governmental, and physical forces. The concept addresses the question of legally allowable, physically possible, economically feasible, and maximally productive uses. Potential alternative uses of the property must be considered in the highest and best use analysis. Once the legally allowable and physically possible uses have been identified, the economic viability of the various uses must be determined. The use is financially feasible if it provides a positive return to the land. The highest and best use is that use that provides the highest overall return. Legally Permissible The General Plan designation for entire property is Public/Semi-Public Facilities, which identifies major facilities built and maintained for public use. Examples include institutional uses, academic facilities, governmental complexes, and community service facilities, such as water and sewer facilities. This designation may include privately owned facilities built and maintained for public use. A maximum floor area ratio (FAR) of 0.50 is permitted by this designation. It is our understanding that the General Plan designation was placed on the parcel due to its ownership by a public water company and that development consistent with the zoning would require a General Plan amendment. : The subject consists of a ±10,000 square foot parcel of vacant land of which the approximate 7,500 square foot southwest portion is zoned M58, High Impact Industrial, by the County of San Diego, while the balance of 2,500 square feet (25 feet by 100 feet) is zoned C30, Office Professional. Among other things, the M58 zone allows unenclosed commercial and industrial operations including construction sales and services. Uses permitted in the C30 zone include administrative and professional offices and other limited commercial uses. Physically Possible: The appraised parcel is a square shaped, mostly gently sloping parcel of land situated below the grade of Jamacha Boulevard. All public utilities are immediately available to the subject property, and the land presumably has direct frontage to and from Jamacha Boulevard, a public roadway (see ‘Hypothetical Conditions’ on page 7 of this report). Development options may be limited due to the small parcel size and the potential impact on site usability upon making an allowance for an access road to and from the lot. Furthermore, the elevation transition between Jamacha Boulevard and the parcel will potentially restrict accessibility from some larger vehicles. 2 The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015), p. 109 ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 22 Economically Feasible and Maximally Productive: The issue of economic feasibility focuses primarily on supply and demand characteristics of the local land market balanced against site development and infrastructure costs, along with the cost and time to obtain development approval. A maximally productive use is one that provides the greatest return or value. Over the past three+ year period, there has been plenty of market evidence of increasing demand for vacant parcels that can accommodate industrial and commercial development in the local area, and this has resulted in an increase in land prices in the area. However, the use of the subject for industrial and/or commercial purposes will likely be hampered due to potential site development costs necessary to bring the land to a usable state as it is situated below street grade with no improved access. Conclusion: Based on the preceding, we have determined that the highest and best use of the subject property is development with a small industrial or commercial use that conforms with the underlying land use criteria established by the County of San Diego. VALUATION METHODOLOGY Of the three common valuation approaches in real estate appraisal, the Sales Comparison Approach was considered to be the only pertinent method in the analysis of the subject property. Neither the Cost Approach nor Income Approach was considered applicable or useful in the valuation process. The Sales Comparison Approach relies on the concept that a prudent purchaser would pay no more to buy a property than it would cost to acquire a comparable substitute. Sales of similar properties are analyzed based on a direct comparison with the subject to arrive at an indication of value. The preceding sections of this report provide a description of the subject, and the following section includes a discussion and analysis of the data used in the valuation process. The unit of comparison is the price paid per square foot of land area. SALES COMPARISON APPROACH We carefully investigated the marketplace in an attempt to discover recent sales of industrial and commercial parcels in the subject market area with development limitations similar to the subject that could be related to the appraised site on a direct comparison basis. As a result of our investigation, we selected five closed transactions from the information gathered and utilized these in the valuation analysis of the appraised property by the Sales Comparison Approach. A summary of the market data is on page 24, and a location map that illustrates the location of the four items of data in relation to the subject is on page 23. The summary is followed by a discussion of the data and an adjustment grid that recognizes differences between the comparables and the subject. Aerial and ground level photographs of the data are included in the Addenda section of this report. ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 23 ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 24 Datum No Location/APN Thos Bros Map Code Sale Date Doc No Buyer/Seller Parcel Size (SF)Zone Topo Sale Price Price/ Net SF Comments Subject SE side Jamacha Blvd Spring Valley 505-672-20 & Portion of 505-672-19 1291-F1 --- --- --- / Otay Municipal Water District 10,000 M58 (Industrial) & C30 (Office Prof) County of San Diego Mostly gently to moderately sloping --- --- Will require General Plan amendment from Public/Semi-Public Facilities which was applied due to prior ownership by water district. 1 8430 Paradise Valley Rd Spring Valley 584-160-52 1291-A4 Jun-18 228719 BPIIE/ Hydrosen Properties Inc 18,047 M54 (Industrial) County of San Diego Mostly level $350,000 $19.39 At signalized intersection of Paradise Valley Road and Elkelton Place, with exposure and good access to 125 freeway. Intended for commercial use. 2 1365 Presioca St Spring Valley 578-201-14 1291-B2 Jul-16 96806 Dowsing Trust/ Cabana Properties LLC 59,677 M52 & M54 (Industrial) County of San Diego Level $800,000 $13.41 Interior, unpaved contractor's storage yard with small, older office building. 3 1341 E Main St El Cajon 489-180-62 1232-A5 Jul-18 288269 Albehadili/ La Maestra Family Clinic Inc 34,848 CG (Comm'l) City of El Cajon Level $800,000 $22.96 Interior parcel with frontage on both north and south sides. 4 8600 Block Railroad Ave Santee 384-410-49 1231-E7 Mar-17 96806 Martin/ Cozza Properties LLC 6,480 IL (Light Industrial) City of Santee Level $85,000 $13.12 Rectangular shaped, 54' by 120', industrially zoned parcel at end of cul- de-sac adjacent to SR-52. Sold previously in May 2014 for $58,500 or $9.03/SF. 5 S Santa Fe Ave San Marcos 219-114-21 1108-D4 Sep-16 487645 Said/ Hayden 8,582 LI (Light Industrial) City of San Marcos Mostly moderately sloping $50,000 $5.83 Very irregularly shaped site that backs to railway. Purchased for speculation. SUMMARY OF MARKET DATA ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 25 Comparable No. 1 is the August 2018 transfer of an 18,047 square foot, irregularly shaped parcel located within about three mile to the southwest of the subject in Spring Valley at the east side of the signalized intersection of Paradise Valley Road and Elkelton Place, just to the west of State Highway 125. The site is mostly level and situated at street grade. All public utilities are at or within close proximity to the property. The effective underlying land uses provide for industrial development, and some commercial uses are permitted. Comparable No. 1 was purchased for a commercial use at a price of $350,000 or $19.39 per square foot, all cash to the seller. When compared with the subject, Sale No. 1 is superior for location and commercial exposure, and also for topographic features and overall site condition. This property and all of the other data are further superior as, unlike the subject, any new development will not require a General Plan amendment to align with the underlying zoning. Comparable No. 2 is the July 2016 purchase of a 59,677 square foot (1.37 acre) parcel located about three miles to the southwest of the subject in Spring Valley at 1365 Presioca Street for $800,000 or $13.41 per square foot, all cash to the seller. The site is an inverted “L” shape and accessed via an unpaved easement road extending north from Presioca Street. All public utilities are available at the site, and some outside storage is allowed by zone. The property has been used as a secured contractor’s yard with an old 700 square foot residence utilized as a contractor’s office. The broker stated that it would be necessary to obtain street dedication from Presioca Street to the site and install curbs, gutters and sidewalks before any new construction could take place. The buyer did not intend to construct a new building on the site, and the plan is to retain the existing contractor’s office. Sale 2 is superior to the subject for site condition and usability. It is also superior for the added value of the existing building, and inferior for commercial exposure. We also made an upward adjustment for changes in market conditions since 2016 when this property sold. Comparable No. 3 relates to the July 2018 purchase of a vacant, 34,848 square foot, irregularly shaped, interior, commercially zoned parcel of land located about seven miles to the northeast of the subject in the City of El Cajon between East Main Street to the north and Melody Lane to the south. All public utilities are readily available at the site. The intended use of the parcel was not disclosed. Sale 4 conveyed at a price of $800,000 or $22.96 per square foot, all cash to the seller. It is superior to the subject for location, site condition, and usability. Comparable No. 4 is the March 2017 transfer of a parcel that is indicated to have dimensions of 54 feet by 120 feet on the Assessor Parcel Map, thus having a total land area of 6,480 square feet. The land is located about nine miles driving distance distance to the north of the subject in the City of Santee on the west side of the 8600 block of Railroad Avenue, and just to the south and below the grade of a stretch of State Route 52 (to freeway standards) that was completed in 2011. The lot is rectangular in configuration, level, and positioned at street grade. It is zoned for light industrial development, and all public utilities are readily available. The property conveyed at a price of $85,000 or $13.12 per square foot of land area. The seller carried $55,000 of the total compensation, and it is our understanding that the terms did not influence the sale price. It is noted that the site sold previously in May 2014 for $58,500, at which time the seller was in the process of preparing a plan to develop the parcel with a small industrial building. When compared with the subject, Sale 4 is judged to be superior for topography and usability, and it is inferior for overall location and exposure. ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 26 Comparable No. 5 pertains to the September 2016 transfer of a very irregularly shaped, mostly moderately sloping, 8,582 square foot parcel of vacant, industrially zoned land located about 44 miles to the north of the subject in the City of San Marcos on the northeast side of South Santa Fe Avenue. The parcel sold for speculation at a price of $50,000 or $5.83 per square foot, and the seller carried a note for $35,000 at terms that were considered to be at market. All public utilities are available to the site, which is zoned and designated for light industrial use. When compared with the subject, Sale 5 is judged to be inferior for location and site configuration. Additionally, we applied an upward adjustment for changes in market conditions since the date of this sale in 2016. In addition to these five comparables, we are aware of the May 2018 sale of an 8,310 square foot, very irregularly shaped, mostly level parcel of commercially zoned land located approximately six miles to the northwest of the subject in the City of La Mesa between Parkway Drive to the north, Fletcher Parkway to the south, and Jackson Drive to the west. All public utilities are at or in the vicinity of the parcel. The seller was the City of San Diego, and the buyer is the owner of the adjoining site that is improved with an auto oil change service facility. The lot, which is predominantly encumbered with a subsurface pipeline easement, was purchased for additional parking for the existing business. Prior to the sale, the parcel had been appraised for $150,000 or $18.05 per square foot assuming it was to be assembled to the neighboring parcel, and $75,000 or $9.03 per square foot as an independent site. The buyer negotiated to purchase the parcel for $255,000 or $30.69 per square foot, and the seller was cashed out in the transaction. By comparison with the subject, this property is notably superior for location and site topography, and inferior for configuration and the existing easement encumbrance. Based on the other data, it appears that this price for the site well exceeds market value would can be attributed to the buyer’s motivation to add the site to his adjoining property. Summary and Conclusion of Value: In this analysis, several elements of comparison were considered as to their relative effect on price. Our analysis recognizes differences in such factors as property rights conveyed, financing terms, conditions of sale, market conditions, location, access, exposure, parcel size, site condition/topography, configuration, availability of public utilities, and other factors. Financing was not a factor for any of the sales considered in this analysis as the sellers were either cashed out in the transactions or the sellers carried portions of the total consideration at what were considered to reflect market rates and terms. Regarding parcel size, the market generally responds to size differences due to supply and demand factors that typically result in a larger pool of potential buyers for smaller sites due to the comparatively lower total financial commitment involved. The result is that smaller parcels commonly attract greater per square foot prices than larger parcels of similar use. In this analysis, it appears that the differences in size between the subject and all of the data are not significant enough to warrant adjustments. Additionally, a review of the data support the conclusion that commercial and industrial land in the subject market area experienced price escalation since 2016 when Sale Nos. 2 and 5 occurred, and we applied upward adjustments to those data to account for improved market conditions. There is insufficient support from the marketplace to suggest a quantifiable adjustment for changes in market conditions to the other comparables that occurred within about two years of the date of value. A summary of quantitative adjustments made to the data to account for noted differences between those properties and the subject is on page 27. The five items of market data conveyed ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. 27 at prices ranging from $5.83 to $22.96 per square foot. As can be seen, the comparables suggest a value for the subject between $8.33 and $11.15 per square foot. The average indicated value from the data is $9.92 per square foot, and the median is $10.33 per square foot. Sales 1, 3, and 5 are closest to the subject for size, and two of these support a value for the subject between $8.33 and $8.73 per square foot. Comp No 1 2 3 4 5 Price Per Square Foot $19.39 $13.41 $22.96 $13.12 $5.83 Property Rights 0.0% 0.0% 0.0% 0.0% 0.0% Financing 0.0% 0.0% 0.0% 0.0% 0.0% Conditions of Sale 0.0% 0.0% 0.0% 0.0% 0.0% Market Conditions 0.0% 10.0% 0.0% 0.0% 10.0% Net Adjustment 0.0% 10.0% 0.0% 0.0% 10.0% Adjusted Value Per Square Foot $19.39 $14.75 $22.96 $13.12 $6.41 Location & Exposure -15.0% 10.0% -15.0% 15.0% 10.0% Parcel Size 0.0% 0.0% 0.0% 0.0% 0.0% Site Condition & Configuration -30.0% -20.0% -30.0% -20.0% 30.0% Land Use -10.0% -10.0% -10.0% -10.0% -10.0% Utilities 0.0% 0.0% 0.0% 0.0% 0.0% Improvements/Other 0.0% -5.0% 0.0% 0.0% 0.0% Net Adjustment -55.0% -25.0% -55.0% -15.0% 30.0% Indicated Value Per Square Foot $8.73 $11.06 $10.33 $11.15 $8.33 Land Sale Data Adjustment Grid Based on our analysis of the data and considering the overall legal and physical attributes of the ±10,000 square foot subject parcel, it is our opinion that the market value of the property, as of April 9, 2019, is equal to $10.00 per square foot. When this amount is applied to the indicated land area, the result is a total property value of $100,000 (10,000 square feet x $10.00 per square foot = $100,000. ONE HUNDRED THOUSAND DOLLARS ($100,000) ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. Addenda ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. MARKET DATA PHOTOGRAPHS Comparable No. 1 – 8430 Paradise Valley Road, Spring Valley ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. MARKET DATA PHOTOGRAPHS Comparable No. 2 – 1365 Presioca Street, Spring Valley ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. MARKET DATA PHOTOGRAPHS Comparable No. 3 – 1341 East Main Street, El Cajon ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. MARKET DATA PHOTOGRAPHS Comparable No. 4 – 8600 Block Railroad Avenue, Santee ±10,000 Square Foot Parcel, Jamacha Boulevard, Spring Valley, CA Anderson & Brabant, Inc. MARKET DATA PHOTOGRAPHS Comparable No. 5 – South Santa Fe Avenue, San Marcos EXHIBIT C FOR SALE Vince Provenzano President of Brokerage Vince@PacificCoastCommercial.com Lic. 00780182 (619)469-3600 | 10721 Treena St., Ste 200 | San Diego, CA 92131 | www.PacificCoastCommercial.com | Lic. 01209930 Tyler McKee Sales & Leasing Associate Tyler@PacificCoastCommercial.com Lic. 02082617 The information contained herein has been given to us by the owner of the property or other sources we deem reliable, we have no reason to doubt its accuracy, but we do not guarantee it. All information including zoning and use should be verified prior to purchase. Vacant Industrial/Commercial Lot ±10,000 SF | Sale Price: $150,000 EXHIBIT D development opportunity ±10,000 sf vacant land SPRING VALLEY property features • South Side of Jamacha Boulevard, Spring Valley, CA 91978 • +/- 10,000 SF Parcel of Vacant Land • APN #: 505-672-20-00 and a Portion of 505-672-19-00 development opportunity • Zoned: M58 and C30, County of San Diego • Development of Industrial or Commercial Use (7,500:2,500) • 100 Feet of Direct Frontage on Jamacha Blvd., a Well Traveled Roadway • Sale Price: $150,000 Immediate Access to Hwy 54, with Easy Access to Hwy 94 & 125 Heavily Populated Suburban Area Covering Approx. 13.5 Miles 19,617 Vehicles Per Day On Jamacha Blvd & Folex Way Average Household Income: $93,939 within a 1 Mile Radius (2019) Information Source: CoStar Spring Valley is the largest un-incorporated community in the county of San Diego, covering thirteen and a half square miles. The predominant land use in the area is single family residential, but since the 1970’s denser housing areas have been developed. The market for residential properties in the Spring Valley Area has been improving for the last several years. The high concentration of residential properties has benefited both retail and office properties. Public transportation is provided by the Metropolitan Transit System which has several bus routes serving the community. 59,639 population owner occupied 284,451 full time population 65,111 day time population 293,521 population growth (2024) $87,099 avg. household income 95,356 # of households8,526 businesses $2.8B consumer spending * demographics source: costar, based upon a 5 mile radius 57,065 population renter occupied spring valley | market snapshot Jamacha Boulevard, Spring Valley, CA 91978 aerial | surrounding area DocuSign Envelope ID: 73F78F9D-5428-41AC-9A7C-F41B0391EF96 4-� C A L 1 F O R N I A A� ASSOCIATION� OF REALTORS ...- DISCLOSURE REGARDING REAL ESTA TE AGENCY RELATIONSHIP (Buyer's Brokerage Firm to Buyer) (As required by the Civil Code) (C.A.R. Form AD, Revised 12/18) 0 (If checked) This form is being provided in connection with a transaction for a leasehold interest exceeding one year as per Civil Code section 2079.130), (k) and (I). When you enter into a discussion with a real estate agent regarding a real estate transaction, you should from the outset understand what type of agency relationship or representation you wish to have with the agent in the transaction. SELLER'S AGENT A Seller's agent under a listing agreement with the Seller acts as the agent for the Seller only. A Seller's agent or a subagent of that agent has the following affirmative obligations: To the Seller: A Fiduciary duty of utmost care, integrity, honesty and loyalty in dealings with the Seller. To the Buyer and the Seller: (a)Diligent exercise of reasonable skill and care in performance of the agent's duties.(b)A duty of honest and fair dealing and good faith.(c) A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, orwithin the diligent attention and observation of, the parties. An agent is not obligated to reveal to either party any confidentialinformation obtained from the other party that does not involve the affirmative duties set forth above. BUYER'S AGENT A Buyer's agent can, with a Buyer's consent, agree to act as agent for the Buyer only. In these situations, the agent is not the Seller's agent, even if by agreement the agent may receive compensation for services rendered, either in full or in part from the Seller. An agent acting only for a Buyer has the following affirmative obligations: To the Buyer: A fiduciary duty of utmost care, integrity, honesty and loyalty in dealings with the Buyer. To the Buyer and the Seller: (a) Diligent exercise of reasonable skill and care in performance of the agent's duties.(b)A duty of honest and fair dealing and good faith.(c) A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties. An agent is not obligated to reveal to either party any confidentialinformation obtained from the other party that does not involve the affirmative duties set forth above. AGENT REPRESENTING BOTH SELLER AND BUYER A real estate agent, either acting directly or through one or more salespersons and broker associates, can legally be the agent of both the Seller and the Buyer in a transaction, but only with the knowledge and consent of both the Seller and the Buyer. In a dual agency situation, the agent has the following affirmative obligations to both the Seller and the Buyer: (a)A fiduciary duty of utmost care, integrity, honesty and loyalty in the dealings with either the Seller or the Buyer.(b)Other duties to the Seller and the Buyer as stated above in their respective sections.In representing both Seller and Buyer, a dual agent may not, without the express permission of the respective party, disclose to the other party confidential information, including, but not limited to, facts relating to either the Buyer's or Seller's financial position, motivations, bargaining position, or other personal information that may impact price, including the Seller's willingness to accept a price less than the listing price or the Buyer's willingness to pay a price greater than the price offered. SELLER AND BUYER RESPONSIBILITIES Either the purchase agreement or a separate document will contain a confirmation of which agent is representing you and whether that agent is representing you exclusively in the transaction or acting as dual agent. Please pay attention to that confirmation to make sure it accurately reflects your understanding of your agent's role. The above duties of the agent in a real estate transaction do not relieve a Seller or Buyer from the responsibility to protect his or her own interests. You should carefully read all agreements to assure that they adequately express your understanding of the transaction. A real estate agent is a person qualified to advise about real estate. If legal or tax advice is desired, consult a competent professional. If you are a Buyer, you have the duty to exercise reasonable care to protect yourself, including as to those facts about the property which are known to you or within your diligent attention and observation. Both Sellers and Buyers should strongly consider obtaining tax advice from a competent professional because the federal and state tax consequences of a transaction can be complex and subject to change. Throughout your real property transaction you may receive more than one disclosure form, depending upon the number of agents assisting in the transaction. The law requires each agent with whom you have more than a casual relationship to present you with this disclosure form. You should read its contents each time it is presented to you, considering the relationship between you and the real estate agent in your specific transaction. This disclosure form includes the provisions of Sections 2079.13 to 2079.24, inclusive, of the Civil Code set forth on page 2. Read it carefully. I/WE ACKNOWLEDGE RECEIPT OF A COPY OF THIS DISCLOSURE AND THE PORTIONS OF THE CIVIL CODEPRINTED ON THE BACK (OR A SEPra)o': , � 8/27/20200 Buyer O Seller O Landlord □ Tenant ��c: Date _________ _ a OEA45214C4. 0 Buyer O Seller O Landlord □ Tenant ________________________ Date _________ _ Agent __________ _,P-=a=-=c:.:.:if.c.:..:ic=-=.C.=.oa=-=s=-=t-=C:..::o:.:.:mc:..:m=er'-"c"-'ia='-I __________ DRE Lie.# .,,0-"12::.:0:..::9c:9.=.3.:..0 __________ _ Real Estate Broker (Firm} By ____________________ DRE Lie.# .,;:0�07�8!.!e0:.!.1.!!c82!:..__---,�'\-+----Date _________ _ (Salesperson or Broker-Associate, if any} Vince Provenzano 01991-2018. California Association of REALTORS®. Inc. By:._---1'-c-=✓--AO REVISED 12/18 (PAGE 1 OF 2) Gen, ra counsel DISCLOSURE REGARDING REAL ESTATE AGENCY RELAT ONSHIP AD PAGE 1 OF 2 P:1cifir Coast Connntrtial. 10721 Trttna Street. Suite 200 San Diego CA 9213 I Phone: 619.469.3600 Fax: 858.560.5604 Vinrc JJrovcnzano Produced with Lone 'Nolf Transactions (z1pForm Edition) 231 Shearson Cr. Cambridge. Ontario, Canada N1T 1J5 www.lwolf.com Jamacha Blvd• EXHIBIT E DocuSign Envelope ID: 73F78F9O-5428-41AC-9A7C-F4180391 EF96 CIVIL CODE SECTIONS 2079.13-2079.24 (2079.16 APPEARS ON THE FRONT) 2079.13. As used in Sections 2079.7 and 2079.14 to 2079.24, inclusive, the following terms have the following meanings: (a) "Agent" means a person acting under provisions of nue 9 (commencing with Section 2295) in a real property transaction, and includes a person who is licensed as a real estate broker under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code, and under whose license a listing is executed or an offer to purchase is obtained. The agent in the real property transaction bears responsibility for that agent's salespersons or broker associates who perform as agents of the agent. Wnen a salesperson or broker associate owes a duty to any principal, or to any buyer or seller who is not a principal, in a real property transaction. that duty is equivalent to the duty owed to that party by the broker for whom the salesperson or broker associate functions. (b) "Buyer" means a transferee in a real property transaction, and includes a person who executes an offer to purchase real property from a seller through an agent, or who seeks the services of an agent in more than a casual, transitory. or preliminary manner. with the object of entering into a real property transaction. "Buyer" includes vendee or lessee of real property. (c) "Commercial real property' means all real property in the state, except (1) single-family residential real property, (2) dwelling units made subject to Chapter 2 (commencing with Section 1940) of Title 5, (3) a mobilehome. as defined in Section 798.3, (4) vacant land, or (5) a recreational vehicle, as defined in Section 799.29. (d) "Dual agent' means an agent acting, either directly or through a salesperson or broker associate. as agent for both the seller and the buyer in a real property transaction. (e) "Listing agreement' means a written contract between a seller of real property and an agent. by which the agent has been authorized to sell the real property or to find or obtain a buyer. including rendering other services for which a real estate license is required to the seller pursuant to the terms of the agreement. (f) "Seller's agent" means a person who has obtained a listing of real property to act as an agent forcompensation.(g) "Listing price" is the amount expressed in dollars specified in the listing for which the seller is willing to sell the real property through the seller's agent. (h) "Offering price· is the amount expressed in dollars specified in an offer to purchase for which the buyer is willing to buy the real property. (i) "Offer to purchase· means a written contract executed by a buyer acting through a buyer's agent that becomes the contract for the sale of the real property upon acceptance by the seller. (j) "Real property· means any estate specified by subdivision (1) or (2) of Section 761 in property. and includes (1) single-family residential property, (2) multiunit residential property with more than four dwelling units. (3) commercial real property, (4) vacant land, (5) a ground lease coupled with improvements, or (6) a manufactured home as defined in Section 18007 of the Health and Safety Code, or a mobilehome as defined in Section 18008 of the Health and Safety Code, when offered for sale or sold through an agent pursuant to the authority contained in Section 10131.6 of the Business and Professions Code. (k) "Real property transaction" means a transaction for the sale of real property in which an agent is retained by a buyer, seller. or both a buyer and seller to act in that transaction, and includes a listing or an offer to purchase. (I) "Sell," "sale," or ·sold" refers to a transaction for the transfer of real property from the seller to the buyer and includes exchanges of real property between the seller and buyer, transactions for the creation of a real property sales contract within the meaning of Section 2985, and transactions for the creation of a leasehold exceeding one year's duration. (m) "Seller" means the transferor in a real property transaction and includes an owner who lists real property with an agent, whether or not a transfer results, or who receives an offer to purchase real property of which he or she is the owner from an agent on behalf of another. "Seller" includes both a vendor and a lessor of real property. (n) "Buyer's agent" means an agent who represents a buyer in a real property transaction. 2079.14. A seller's agent and buyer's agent shall provide the seller and buyer in a real property transaction with a copy of the disclosure form specified in Section 2079.16, and shall obtain a signed acknowledgment of receipt from that seller and buyer, except as provided in Section 2079.15, as follows: (a) The seller's agent. if any, shall provide the disclosure form to the seller prior to entering into the listing agreement. (b) The buyer's agent shall provide the disclosure form to the buyer as soon as practicable prior to execution of the buyer's offer to purchase. If the offer to purchase is not prepared by the buyer's agent. the buyer's agent shall present the disclosure form to the buyer not later than the next business day after receiving the offer to purchase from the buyer. 2079.15. In any circumstance in which the seller or buyer refuses to sign an acknowledgment of receipt pursuant to Section 2079.14, the agent shall set forth. sign, and date a written declaration of the facts of the refusal. 2079.16 Reproduced on Page 1 of this AD form. 2079.17(a) As soon as practicable. the buyer's agent shall disclose to the buyer and seller whether the agent is acting in the real property transaction as the buyer's agent, or as a dual agent representing both the buyer and the seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller, the buyer. and the buyer's agent prior to or coincident with execution of that contract by the buyer and the seller, respectively. (b) As soon as practicable, the seller's agent shall disclose to the seller whether the seller's agent is acting in the real property transaction as the seller's agent, or as a dual agent representing both the buyer and seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller and the seller's agent prior to or coincident with the execution of that contract by the seller. CONFIRMATION: The following agency relationships are confirmed for this transaction: Seller's Brokerage Firm DO NOT COMPLETE. SAMPLE ONLY License Number ______ _ Is the broker of (check one): D the seller; or D both the buyer and seller. (dual agent) Seller's Agent DO NOT COMPLETE. SAMPLE ONLY License Number ______ _ Is (check one): D the Seller's Agent. (salesperson or broker associate) D both the Buyer's and Seller's Agent. (dual agent) Buyer's Brokerage Firm DO NOT COMPLETE. SAMPLE ONLY License Number ______ _ Is the broker of (check one): D the buyer; or D both the buyer and seller. (dual agent) Buyer's Agent DO NOT COMPLETE. SAMPLE ONLY License Number ______ _ Is (check one): D the Buyer's Agent. (salesperson or broker associate) D both the Buyer's and Seller's Agent. (dual agent) (d)The disclosures and confirmation required by this section shall be in addition to the disclosure required by Section 2079.14. An agent's duty to provide disclosure and confirmation of representation in this section may be performed by a real estate salesperson or broker associate affiliated with that broker. 2079.18 (Repealed pursuant to AB-1289) 2079.19 The payment of compensation or the obligation to pay compensation to an agent by the seller or buyer is not necessarily determinative of a particularagency relationship between an agent and the seller or buyer. A listing agent and a selling agent may agree to share any compensation or commission paid, or any right to any compensation or commission for which an obligation arises as the result of a real estate transaction, and the terms of any such agreement shall not necessarily be determinative of a particular relationship. 2079.20 Nothing in this article prevents an agent from selecting, as a condition of the agent's employment, a specific form of agency relationship not specifically prohibited by this article if the requirements of Section 2079.14 and Section 2079.17 are complied with.2079.21 (a) A dual agent may not, without the express permission of the seller, disclose to the buyer any confidential information obtained from the seller. (b) A dualagent may not, without the express permission of the buyer, disclose to the seller any confidential information obtained from the buyer. (c) "Confidential information· means facts relating to the client's financial position, motivations, bargaining position, or other personal information that may impact price, such as the seller is willing to accept a price less than the listing price or the buyer is willing to pay a price greater than the price offered. (d) This section does not alter in any way the duty or responsibility of a dual agent to any principal with respect to confidential information other than price. 2079.22 Nothing in this article precludes a seller's agent from also being a buyer's agent. If a seller or buyer in a transaction chooses to not be represented by an agent, that does not, of itself, make that agent a dual agent. 2079.23 A contract between the principal and agent may be modified or altered to change the agency relationship at any time before the performance of the act which is the object of the agency with the written consent of the parties to the agency relationship.2079.24 Nothing in this article shall be construed to either diminish the duty of disclosure owed buyers and sellers by agents and their associate licensees.subagents, and employees or to relieve agents and their associate licensees. subagents, and employees from liability for their conduct in connection with acts governed by this article or for any breach of a fiduciary duty or a duty of disclosure. © 1991-2018, California Association of REALTORS®, Inc. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS®. NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE. CONSULT AN APPROPRIATE PROFESSIONAL. IJ Published and Distributed by; REAL ESTATE BUSINESS SERVICES. LLC. a subsidia,y of the California Association of REAL TORS® .. 525 South Virgil Avenue, Los Angeles, California 90020 AD REVISED 12/18 (PAGE 2 OF 2) DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIP (AD PAGE 2 OF 2) Produced w11h Lone Wolf Transactions (z,pForm Edition) 231 Shearson Cr. Cambridge, Ontario. Canada N1T 1J5 www.lwolf.com hmach• lll•d • DocuSign Envelope ID: 73F78F9O-5428-41AC-9A7C-F4180391EF96 CALIFORNIA ASSOCIATION OF REALTORS.a; POSSIBLE REPRESENTATION OF MORE THAN ONE BUYER OR SELLER -DISCLOSURE AND CONSENT (C.A.R. Fann PRBS, Revised 12/18) A real estate broker (Broker), whether a corporation, partnership or sole proprietorship, may represent more than one buyer or seller. This multiple representation can occur through an individual licensed as a broker or salesperson or through different individual broker's or salespersons (associate licensees) acting under the Broker's license. The associate licensees may be working out of the same or different office locations. Multiple Buyers: Broker (individually or through its associate licensees) may be working with many prospective buyers at the same time. These prospective buyers may have an interest in, and make offers on, the same properties. Some of these properties may be listed with Broker and some may not. Broker will not limit or restrict any particular buyer from making an offer on any particular property whether or not Broker represents other buyers interested in the same property. Multiple Sellers: Broker (individually or through its associate licensees) may have listings on many properties at the same time. As a result, Broker will attempt to find buyers for each of those listed properties. Some listed properties may appeal to the same prospective buyers. Some properties may attract more prospective buyers than others. Some of these prospective buyers may be represented by Broker and some may not. Broker will market all listed properties to all prospective buyers whether or not Broker has another or other listed properties that may appeal to the same prospective buyers. Dual Agency: If Seller is represented by Broker, Seller acknowledges that broker may represent prospective buyers of Seller's property and consents to Broker acting as a dual agent for both seller and buyer in that transaction. If Buyer is represented by Broker, buyer acknowledges that Broker may represent sellers of property that Buyer is interested in acquiring and consents to Broker acting as a dual agent for both buyer and seller with regard to that property. In the event of dual agency, seller and buyer agree that: a dual agent may not, without the express permission of the respective party, disclose to the other party confidential information, including, but not limited to, facts relating to either the buyer's or seller's financial position, motivations, bargaining position, or other personal information that may impact price, including the seller's willingness to accept a price less than the listing price or the buyer's willingness to pay a price greater than the price offered; and except as set forth above, a dual agent is obligated to disclose known facts materially affecting the value or desirability of the Property to both parties. Offers not necessarily confidential: Buyer is advised that seller or listing agent may disclose the existence, terms, or conditions of buyer's offer unless all parties and their agent have signed a written confidentiality agreement. Whether any such information is actually disclosed depends on many factors, such as current market conditions, the prevailing practice in the real estate community, the listing agent's marketing strategy and the instructions of the seller. Buyer and seller understand that Broker may represent more than one buyer or more than one seller and even both buyer and seller on the same transaction and consents to such relationships. Seller and/or Buyer acknowledges reading and understanding this Possible Representation of More Than One Buyer or Seller -Disclo nd Consent and agrees to the agency possibilities disclosed. Seller OWD, Jose Martinez, General Manager Date � • "t.,-z_o SelleF. . Date ____ _ Buye�,., Dan Miller Date 812712020 Buye • • Date ____ _ Buy�M�e Firm Pacific Coast CommercialBy �et p'l-9i'� in�fs{�KWJlJ.l_no Sel13Efftl'R@!'ffi§e Firm Pacific Coast Commercial By 1/�P-ww� . FJIJ�Y#�_(IO DRE Lie# 01209930 Date 8127 /2020 DRE Lie# 00780182 Date DRE Lie # 01209930DRE Lie# 00780182 ----- Date 8/27/2020 Date ____ _ © 2018, California Association of REALTORS®, Inc. United States copyright law (TiUe 17 U.S. Code) forbids the unauthorized distribution, display and reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE. CONSULT AN APPROPRIATE PROFESSIONAL. This form is made available to real estate professionals through an agreement with or purchase from the California Association of REAL TORS®. It is not intended to identify the user as a REAL TOR®. REAL TOR® is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REAL TORS® who subscribe to its Code of Ethics. I] Published and Distributed by: REAL ESTATE BUSINESS SERVICES, LLC. a subsidiary of the California Association of REAL TORS® • 525 South Virgil Avenue, Los Angeles, California 90020 PRBS REVISED 12/18 (PAGE 1 OF 1) POSSIBLE REPRESENTATION OF MORE THAN ONE BUYER OR SELLER PRBS PAGE 1 OF 1 Pacific Coasl Commercial, 10721 Treenn Street. Suite 200 San DitJtO CA 9213 I Phone: 619.-169.J600 Fax: 8S8.S60.S60-& Vince Pro\·enzano Produced with Lone \IVolf Transactions (z1pForm Edition) 231 Shearson Cr. Cambndge, Ontano, Canada N1T 1J5 www.twolf.com Janrnrlrn Blvd - DocuSign Envelope ID: 73F78F9O-5428-41 AC-9A7C-F41 B0391 EF96 4-� C A L I F O RN I A ,., ASSOCIATION � OF REALTORS� WIRE FRAUD AND ELECTRONIC FUNDS TRANSFER ADVISORY (C.A.R. Form WFA, Revised 12/17) Property Address: Jamacha Blvd, Spring Vallev, CA 91978WIRE FRAUD AND ELECTRONIC FUNDS TRANSFERS ADVISORY: ("Property"). The ability to communicate and conduct business electronically is a convenience and reality in nearly all parts of our lives. At the same time, it has provided hackers and scammers new opportunities for their criminal activity. Many businesses have been victimized and the real estate business is no exception. While wiring or electronically transferring funds is a welcome convenience, we all need to exercise extreme caution. Emails attempting to induce fraudulent wire transfers have been received and have appeared to be legitimate. Reports indicate that some hackers have been able to intercept emailed transfer instructions, obtain account information and, by altering some of the data, redirect the funds to a different account. It also appears that some hackers were able to provide false phone numbers for verifying the wiring or funds transfer instructions. In those cases, the victim called the number provided to confirm the instructions, and then unwittingly authorized a transfer to somewhere or someone other than the intended recipient. ACCORDINGLY, YOU ARE ADVISED: 1.Obtain phone numbers and account numbers only from Escrow Officers, Property Managers, orLandlords at the beginning of the transaction.2.DO NOT EVER WIRE OR ELECTRONICALLY TRANSFER FUNDS PRIOR TO CALLING TOCONFIRM THE TRANSFER INSTRUCTIONS. ONLY USE A PHONE NUMBER YOU WEREPROVIDED PREVIOUSLY. Do not use any different phone number or account number includedin any emailed transfer instructions.3.Orally confirm the transfer instruction is legitimate and confirm the bank routing number,account numbers and other codes before taking steps to transfer the funds.4.Avoid sending personal information in emails or texts. Provide such information in person orover the telephone directly to the Escrow Officer, Property Manager, or Landlord.5.Take steps to secure the system you are using with your email account. These steps includecreating strong passwords, using secure WiFi, and not using free services. If you believe you have received questionable or suspicious wire or funds transfer instructions, immediately notify your bank, and the other party, and the Escrow Office, Landlord, or Property Manager. The sources below, as well as others, can also provide information: Federal Bureau of Investigation: https://www.fbi.gov/; the FBl's IC3 at www.ic3.gov; or 310-477-6565 National White Collar Crime Center: http://www.nw3c.org/ On Guard Online: https://www.onguardonline.gov/ NOTE: There are existing alternatives to electronic and wired fund transfers such as cashier's checks. By signing below, the undersigned acknowledge that each has read, understands and has received a copy of this tiofuf�yi:Jnd Electronic Funds Transfer Advisory. I,....,..,_ d1 _,.(r\ 8/27/2020 Buyer/Tenant �k Dan Miller Date _____ _ Buyer/Tenant o13noEA•s21•c• Date Seller/Landlord :;z..�z OWD, Jose Martinez, General Manager Date --'1---z--'"2-o-- Seller/Landlord ______________________________ Date _____ _ <02016-2017, California Association of REALTORS®. Inc. United States copyright law (Title 17 U.S. Code) forbids the unauthorized distribution, display and reproduction of this form. or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS®. NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE. CONSULT AN APPROPRIATE PROFESSIONAL. This form is made available to real estate professionals through an agreement with or purchase from the California Association of REAL TORS®. It is not intended to identify the user as a REAL TOR®. REALTOR® is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REAL TORS® who subscribe to its Code of Ethics. Published and Distributed by: REAL ESTATE BUSINESS SERVICES. LLC. a subsidiary of the California Association of REAL TORS® _ 525 South Virgil Avenue, Los Angeles. Calfomia 90020 WFA REVISED 12/17 (PAGE 1 OF 1) WIRE FRAUD AND ELECTRONIC FUNDS TRANSFER ADVISORY WFA PAGE 1 OF 1 Pacific Coast Commtrc:ial, 10721 Trttn:1 S1rtt1,Sui1c 200 S:tn Oitgo CA 92131 Phone: 619A69.J600 Fax: 858.560.5604 Vinc:c Pro\·tnzano Produced with Lone Wolf Transactions (ZJpForm Edition) 231 Shearson Cr Cambndge. Ontano. Canada N1T 1J5 www.twolf com Jnmath:t Ulvd • DocuSign Envelope ID: 73F78F9D-5428-41AC-9A7C-F41 B0391 EF96 ,-� CAL IF ORN I A VACANT LAND PURCHASE AGREEMENT � � ASSOC I AT ION AND JOINT ESCROW INSTRUCTIONS � OF RE A LT ORS 11, (C.A.R. Form VLPA, Revised 12/18) Date Prepared: August 24, 2020 1. OFFER: A.THIS IS AN OFFER FROM Dan Miller ("Buyer"),B.THE REAL PROPERTY to be acquired is Jamacha Blvd , situated inSpring Valley (City), San Diego (County), California, 91978 (Zip Code), Assessor's Parcel No. 505-672-20-00 ("Property").Further Described As an approximate 10,000 square feet of vacant land ( a portion of APN# 505-672·19-00 and all of APN# 505-672-20-00) C.THE PURCHASE PRICE offered is .=0:..:.n:..:ec.:Hc.;.u=.:n:..:.d=.:rc.:e'""d:...:E=.:i""g.:..:hc=-ty,_--=-T-=-=w-=o .. T'"'h�oc.:u=-=s'-"a""'n'-"d'------------------ ==--=-==-==-==c=-=::-==--:--,.,..----,---,------------,----,--,--...,.--Dollars $ 182,000.00 D.CLOSE OF ESCROW shall occur on LJ----,,---,----,-,--,------(date) (or[½i 20 Days After Acceptance). E.Buyer and Seller are referred to herein as the "Parties." Brokers are not Parties to this Agreement.2.AGENCY: A. DISCLOSURE: The Parties each acknowledge receipt of a "Disclosure Regarding Real Estate Agency Relationships"(C.A.R. Form AD). B. CONFIRMATION: The following agency relationships are confirmed for this transaction:Seller's Brokerage Firm Pacific Coast Commercial License Number 01209930Is the broker of (check one): LJ the seller; or [ii both the buyer and seller. (dual agent)Seller's Agent Vince Provenzano License Number 00780182 Is (check one): LJ the Seller's Agent. (salesperson or broker associate) [ii both the Buyer's and Seller's Agent. (dual agent) Buyer's Brokerage Firm Pacific Coast Commercial Is the broker of (check one): LJ the buyer; or [ii both the buyer and seller. (dual agent) License Number ----'0'--'1=2=0-"-99"'3�0�_ Buyer's Agent Vince Provenzano License Number 00780182 Is (check one): LJ the Buyer's Agent. (salesperson or broker associate) [ii both the Buyer's and Seller's Agent. (dual agent) C. POTENTIALLY COMPETING BUYERS AND SELLERS: The Parties each acknowledge receipt of a lil "Possible Representationof More than One Buyer or Seller -Disclosure and Consent " (C.A.R. Form PRBS). 3.FINANCE TERMS: Buyer represents that funds will be good when deposited with Escrow Holder. A. INITIAL DEPOSIT: Deposit shall be in the amount of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ____ 2_0�,o_o_o._o_o(1) Buyer Direct Deposit: B�er shall deliver deposit directly to Escrow Holder by electronic fundstransfer, LJ cashier's check, LJ personal check, LJ other _________ within 3 business daysafter Acceptance (or ___________________________ � OR (2) D Buyer Deposit with Agent Buyer has given the deposit by personal check ( or ______ ) to the agent submitting the offer (or to ---------,----,------), made payable to--,-.,.....-c=-----,-,.......,...-,----,...,...,...--c--. The deposit shall be held uncashed until Acceptance and then deposited with Escrow Holder within 3 business days after Acceptance (or _____________ ).Deposit checks given to agent shall be an original signed check and not a copy. (Note: Initial and increased deposits checks received by agent shall be recorded in Broker's trust fund log.) B. INCREASED DEPOSIT: Buyer shall deposit with Escrow Holder an increased deposit in the amount of ... $ _______ _within __ Days After Acceptance (or --------------------,----)-If the Parties agree to liquidated damages in this Agreement, they also agree to incorporate the increaseddeposit into the liquidated damages amount in a separate liquidated damages clause (C.A.R. Form RID)at the time the increased deposit is delivered to Escrow Holder. C. ALL CASH OFFER: No loan is needed to purchase the Property. This offer is NOT contingent onBuyer obtaining a loan. Written verification of sufficient funds to close this transaction IS ATT ACHED tothis offer or D Buyer shall, within 3 (or __ ) Days After Acceptance, Deliver to Seller such verification. D. LOAN(S): (1) FIRST LOAN: in the amount of ....................................................... $ ______ _ This loan will be conventional financing OR D FH A, D VA, D Seller financing (C.A.R. Form SF A),0 assumed financing (C.A.R. Form AF A), 0 subject to financing, 0 Other-----,---,-..,..,....-,-. Thisloan shall be at a fixed rate not to exceed ___ %or, 0 an adjustable rate loan with initial rate not to exceed ___ %. Regardless of the type of loan, Buyer shall pay points not to exceed ___ % of the loan amount. (2) 0 SECOND LOAN in the amount of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ______ _This loan will be conventional financing OR O Seller financing (C.A.R. Form SF A), Oassumed financing (C.A.R. Form AF A), 0 subject to financing O Other ______ . This loan shall be ata fixed rate not to exceed __ % or, Dan adjustable rate loan with initial rate not to exceed __ %. Regardless of the type of loan, Buyer shall pay points not to exceed __ % of the loan amount. (3)FHA/VA: For any FH A or VA loan specified in 30(1), Buyer has 17 (or ) Days After Acceptance to Deliver to Seller written notice (C.A.R. Form FVA) of any lender-required repairs or costs that Buyer requests Seller y for or otherwise correct. Seller has no obligation to pay or satisfy lender requirements unless agr d · T . A FHANA amendatory clause (C.A.R. Form FVAC) shall be a part of this transaction. Buyer's Initials ( ( -'==--_,Appro s Form Seller's Initials ( A$ ) (<C> 2018, California A ORS®, Inc. 7°" VLPA REVISED 12118 (PAGE 1 OF 11) By:_6-=t--,:;__-VACANT LAND PURCHA�E AG Paciric Coas1 Commercial. 10721 Trttna Slrttl. Suite 200 San Diego CA 92131 Phone: 619.469.3600 Fax: 858.560.5604 Viner Pro,·rnuno Produced with Lone \Nolf Transactions (zipForm Edition) 231 Shearson Cr Cambridge, Ontano, Canada N1T 1J5 www.lwolf.com Jamachn Uh•d • DocuSign Envelope ID: 73F78F9D-5428-41AC-9A7C-F4180391EF96 Property Address: Jamacha Blvd, Spring Valley. CA 91978 Date: August 24, 2020 E. ADDITIONAL FINANCING TERMS: Paragraph 3(JJ(4)-Cash Sale with no loan contingencyFull Deposit is Non-Refundable immediately with exception of Seller Breach F.BALANCE OF DOWN PAYMENT OR PURCHASE PRICE in the amount of ...................... $ ____ 1_6_2�,o_o_o._o_o to be deposited with Escrow Holder pursuant to Escrow Holder instructions. G.PURCHASE PRICE (TOTAL): .......................................................... $ 182,000.00 H.VERIFICATION OF DOWN PAYMENT AND CLOSING COSTS: Buyer (or Buyer's lender or loan broker pursuant to paragraph3J(1)) shall, within 3 (or ) Days After Acceptance, Deliver to Seller written verification of Buyer's down payment and closing costs. ( 0 Verification attached.) I.APPRAISAL CONTINGENCY AND REMOVAL: This Agreement is (or � is NOT) contingent upon a written appraisal of theProperty by a licensed or certified appraiser at no less than the purchase price. Buyer shall, as specified in paragraph 198(3), in writing, remove the appraisal contingency or cancel this Agreement within 17 (or ) Days After Acceptance. J.LOAN TERMS:-- (1) LOAN APPLICATIONS: Within 3 (or ) Days After Acceptance, Buyer shall Deliver to Seller a letter from Buyer's lenderor loan broker stating that, based on areview of Buyer's written application and credit report, Buyer is prequalified or preapproved for any NEW loan specified in paragraph 3D. If any loan specified in paragraph 3D is an adjustable rate loan, the prequalification or preapproval letter shall be based on the qualifying rate, not the initial loan rate. ( 0 Letter attached.) (2) LOAN CONTINGENCY: Buyer shall act diligently and in good faith to obtain the designated loan(s). Buyer's qualification for theloan(s) specified above is a contingency of this Agreement unless otherwise agreed in writing. If there is no appraisal contingency or the appraisal contingency has been waived or removed, then failure of the Property to appraise at the purchase price does not entitle Buyer to exercise the cancellation right pursuant to the loan contingency if Buyer is otherwise qualified for the specified loan. Buyer's contractual obligations regarding deposit, balance of down payment and closing costs are not contingencies of this Agreement. (3) LOAN CONTINGENCY REMOVAL: Within 21 (or _) Days After Acceptance, Buyer shall, as specified in paragraph 19, in writing, remove the loan contingency or cancel this Agreement. If there is an appraisal contingency, removal of the loan contingency shall not be deemed removal of the a praisal contingency. (4) NO LOAN CONTINGENCY: Obtaining any loan specified above is NOT a contingency of this Agreement. If Buyer does not obtain the loan and as a result Buyer does not purchase the Property, Seller may be entitled to Buyer's deposit or other legal remedies. (5) LENDER LIMITS ON BUYER CREDITS: Any credit to Buyer, from any source, for closing or other costs that is agreed to by the Parties ("Contractual Credit") shall be disclosed to Buyer's lender. If the total credit allowed by Buyer's lender ("Lender Allowable Credit") is less than the Contractual Credit, then (i) the Contractual Credit shall be reduced to the Lender Allowable Credit, and (ii) in the absence of a separate written agreement between the Parties, there shall be no automatic adjustment to the purchase price to make up for the difference between the Contractual Credit and the Lender Allowable Credit. K.BUYER STATED FINANCING: Seller is relying on Buyer's representation of the type of financing specified (including but not limited to, as applicable, all cash, amount of down payment, or contingent or non-contingent loan). Seller has agreed to a specific closing date, purchase price and to sell to Buyer in reliance on Buyer's covenant concerning financing. Buyer shall pursue the financing specified in this Agreement. Seller has no obligation to cooperate with Buyer's efforts to obtain anyfinancing other than that specified in the Agreement and the availability of any such alternate financing does not excuse Buyer from the obligation to purchase the Property and close escrow as specified in this Agreement. L.SELLER FINANCING: The following terms (or O the terms specified in the attached Seller Financing Addendum) (C.A.R. FormSFA) apply ONLY to financing extended by Seller under this Agreement. (1) BUYER'S CREDIT-WORTHINESS: Buyer authorizes Seller and/or Brokers to obtain, at Buyer's expense, a copy of Buyer'scredit report. Within 7 (or ____ ) Days After Acceptance, Buyer shall provide any supporting documentation reasonably requested by Seller. (2) TERMS: Buyer's promissory note, deed of trust and other documents as appropriate shall incorporate and implement the followingadditional terms: (i) the maximum interest rate specified in paragraph 3D shall be the actual fixed interest rate for Seller financing; (ii) deed of trust shall contain a REQUEST FOR NOTICE OF DEFAULT on senior loans; (iii) Buyer shall sign and pay for a REQUEST FOR NOTICE OF DELINQUENCY prior to Close Of Escrow and at any future time if requested by Seller; (iv) note and deed of trust shall contain an acceleration clause making the loan due, when permitted by law and at Seller's option, upon the sale or transfer of the Property or any interest in it; (v) note shall contain a late charge of 6% of the installment due (or ___ ) if the installment is not received within 10 days of the date due; (vi) title insurance coverage in the form of a joint protection policy shall be provided insuring Seller's deed of trust interest in the Property (any increased cost over owner's policy shall be paid by Buyer); and (vii) tax service shall be obtained and paid for by Buyer to notify Seller if property taxes have not been paid. (3) ADDED, DELETED OR SUBSTITUTED BUYERS: The addition, deletion or substitution of any person or entity under this Agreement or to title prior to Close Of Escrow shall require Seller's written consent. Seller may grant or withhold consent in Seller's sole discretion. Any additional or substituted person or entity shall, if requested by Seller, submit to Seller the same documentation as required for the original named Buyer. Seller and/or Brokers may obtain a credit report, at Buyer's expense, on any such person or entity. M. ASSUMED OR "SUBJECT TO" FINANCING: Seller represents that Seller is not delinquent on any payments due on any loans. Seller shall, within the time specified in paragraph 19, provide Copies of all applicable notes and deeds of trust, loan balances dscurrent interest rates to Buyer. Buyer shall then, as specified in paragraph 198(3), remove this contingency or Appr fl/ , Buyer's Initials ( ,-..;......,.-+-� ,---� By:_�c;,___ Seller's Initials ( � ( ---� @ VLPA REVISE�l-9f'tR-1-P1�1--'JOF 11) Gen ralCounsel VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 2 OF 11) '::'.,.�,-:' Produced wuh Lone Wolf Transactions (z,pFoon Edition) 231 Shearson Cr. Cambndge. Ontano. Canada NH 1J5 www lwolf com Jamar.hn. Blvd • DocuSign Envelope ID: 73F78F9D-5428-41AC-9A7C-F41 B0391 EF96 Property Address: Jamacha Blvd, Spring Valley, CA 91978 Date: August 24, 2020 cancel th is Agreement. D ifferences between estimated and actual loan balances shall be adjusted at Close Of Escrow by cash down payment. Impound accounts, if any, shall be assigned and charged to Buyer and credited to Seller. Seller is advised that Buyer's assumption of an existing loan may not release Seller from l iability on that loan. If th is is an assumption of a VA Loan, the sale is contingent upon Seller being prov ided a release of liability and substitut ion of eligib ility, unless otherwise agreed in writ ing. If the Property is acqu ired subject to an existing loan, Buyer and Seller are advised to consult w ith legal counsel regarding the ab ility of an exist ing lender to call the loan due, and the consequences thereof. 4.SALE OF BUYER'S PROPERTY: A.This Agreement and Buyer's ab ility to obtain financing are NOT contingent upon the sale of any property owned by Buyer. OR B. D This Agreement and Buyer's abil ity to obta in financ ing are cont ingent upon the sale of property owned by Buyer as spec ified in the attached addendum (C.A.R. F orm COP). 5.0 MANUFACTURED HOME PURCHASE: The purchase of the Property is contingent upon Buyer acqu iring a personal property manufactured home to be placed on the Property after Close Of Escrow. Buyer O has O has not entered into a contract for thepurchase of a personal property manufactured home. With in the time spec ified in paragraph 19, Buyer shall remove th iscontingency or cancel th is Agreement, (orO th is contingency shall rema in in effect until the Close Of Escrow of the Property).6.0 CONSTRUCTION LOAN FINANCING: The purchase of the Property is contingent upon Buyer obta ining a construction loan. A draw from the construction loan O w ill C w ill not be used to finance the Property. With in the time specified in paragraph 19, Buyershall remove th is cont ingency or cancel this Agreement ( or D this contingency shall rema in in effect unt il Close Of Escrow of theProperty).7.ADDENDA AND ADVISORIES: A.ADDENDA: -----------------'=□=-A:...:.d:..:d::..::e:.:..:nc::d=.:um.:..:....:.:# __ _.,(C.::..:.c..A=.R_;,;·:...:.F...::oc:.,;rm..:..:....:...A=D""M"-') _____ _ 0 Back Up Offer Addendum (C.A.R. Form BUO) D Court Confirmat ion Addendum (C.A.R. Form CCA) D Sept ic, Well and Property Monument Addendum (C.A.R. F orm SWPI) 0 Short Sale Addendum (C.A. R. Form SSA) 0 Other B.BUYER AND SELLER ADVISORIES: � Buyer's Vacant Land Additional Inspect ion Adv isory (C.A.R. F orm BVLIA)D Probate Advisory (C.A.R. Form PA) D Statew ide Buyer and Seller Advisory (C.A.R. Form SBSA) □Trust Advisory (C.A.R. Form TA)0 REO Advisory (C.A.R. F orm REO) 0 Short Sale Information and Advisory (C.A.R. F orm SSIA)� Other Seller Vacant Land Questionnaire 8.OTHER TERMS: A. Sale Subject to Otay Water District Board approval, Close of Escrow three (3) days thereafterB.Property being sold "As-ls" C.Buyer is now in possession of all Due Diligence materials 9.ALLOCATION OF COSTS A.INSPECTIONS, REPORTS AND CERTIFICATES: Unless otherw ise agreed, in writing, th is paragraph only determ ines who isto pay for the inspection, test, certificate or service ("Report") mentioned; it does not determine who is to pay for any workrecommended or identified in the Report. (1)0 Buyer� Seller shall pay for a natural hazard zone disclosure report, includ ing tax O env ironmental D Other: ____ _�--�--------prepared by ___________________________ _(2) LJ Buyer 1J Seller shall pay for the following Report ________________________ _g_cepared by :--:------,---,----,-----------------------------------(3) LJ Buyer O Seller shall pay for the follow ing Report _________________________ _ prepared by _,,.,--�-------------------------------------8.ESCROW AND TITLE: (1)(a) � Buyer Seller shall pay escrow fee .=S:.c:p:'-:'-li=-t 5=-:0::e.'/=-50=-------------------------(b)Escrow Holder shall be ,,,F.:..:,ir=s.:..t A:....:..:.,m.:..:e:,:..r�icc.=ac:..:nc..;T'-'i�tl=-e--.,----,-----,-----,,c-----,-,.......,.-,--,------,--------:--:--------(c)The Parties shall, with in 5 (or ) Days After rece ipt, sign and return Escrow Holder's general prov isions. (2)(a) D Buyer Seller shall pay for owner's t itle insurance policy specified in paragraph 18E ___________ _(b)Owner's title pol icy to be issued by First American Title -Mark McDonald(Buyer shall pay for any title insurance pol icy insuring Buyer's lender, unless otherwise agreed in writ ing.) C.OTHER COSTS:(1) § Buyer Seller shall pay County transfer tax or fee if applicable(2)Buyer Seller shall pay City transfer tax or fee,----=...,..-::-...,...,,..-----,-------------------------(3)Buyer Seller shall pay Homeowners' Association ("HOA") transfer fee ------,,---,---------,-,c--,--------- (4) Seller shall pay HOA fees for preparing all documents requ ired to be del ivered by Civ il Code §4525.(5)Buyer to � y for any HOA cert ificat ion fee. (6) § Buyer Seller shall pay HOA fees for preparing all documents other than those required by C ivil Code §4525. (7) Buyer Seller shall pay for any private transfer fee _______________________ _(8)Buyer Seller shall pay for ______________________________ _(9)Buyer Seller shall pay for1 0. CLOS ING AND POSSESS ION: Posse_s_s.,...io_n_s..,...h-a,.,..11 .,...be___,,d....,el,,...iv-e-re-d:--:t-o-=B=-u-ye_r_: ...,,( i.,...) .,..0-,--at-=6:--:P=:M:-:--o-r -=_-=_-=._-...,,-=;-----,-O=rA-:-M/:-:-:--,O--=p--=-M:-:-)-o-n....,t=-he---,da-,t:-e -o"""'f-=c::--10se Of Escrow; (i i) D no later than _ calendar days after Close Of Escrow; or (iii) D at __ DAM/ D PM on ---,-----,--The Prope I be unoccup ied, unless otherwise agreed in writ ing. Seller shall provide keys and/or means to operate all Property lac s. I is located in a common interest subd ivision, Buyer may be requ ired to�a epos it to the Homeowners' Buyer's Initials ( ( Sellers Initials ( ( ___ __, � VLPA ISED 1 11) � VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 3 OF 11) •��Produced with Lone Wolf Transactions (z1pFonn Ed1t1on) 231 Shearson Cr. Cambndge, Ontano, Canada N1T 1J5 www.lwotf.com Jamacha Blvd - DocuSign Envelope ID: 73F78F9D-5428-41AC-9A7C-F41 B0391 EF96 Property Address: Jamacha Blvd, Spring Valley, CA 91978 Date: August 24, 2020 Association ("HOA') to obtain keys to accessible HOA facilities. 11. ITEMS INCLUDED IN AND EXCLUDED FROM SALE: A. NOTE TO BUYER AND SELLER: Items listed as included or excluded in the MLS, flyers or marketing materials are not included in the purchase price or excluded from the sale unless specified in 11 B or C. B.ITEMS INCLUDED IN SALE: (1) All EXISTING fixtures and fittings that are attached to the Property; (2) The following items: ______________________________________ _ (3)Seller represents that all items included in the purchase price, unless otherwise specified, are owned by Seller. (4) All items included shall be transferred free of liens and without Seller warranty. C.ITEMS EXCLUDED FROM SALE: ______________________________ _ 12. STATUTORY AND OTHER DISCLOSURES AND CANCELLATION RIGHTS: A. NATURAL AND ENVIRONMENTAL HAZARD DISCLOSURES AND OTHER BOOKLETS: Within the time specified in paragraph 19A,Seller shall, if required by Law: (i) Deliver to Buyer earthquake guide(s) (and questionnaire), environmental hazards booklet; (ii)disclose if the Property is located in a Special Flood Hazard Area; Potential Flooding (Inundation) Area; Very High Fire Hazard Zone;State Fire Responsibility Area; Earthquake Fault Zone; and Seismic Hazard Zone; and (iii) disclose any other zone as required by Lawand provide any other information required for those zones. B.WITHHOLDING TAXES: Within the time specified in paragraph 19A, to avoid required withholding, Seller shall Deliver to Buyer orqualified substitute, an affidavit sufficient to comply with federal (FIRPTA) and California withholding Law (C.A.R. Form AS or QS). C.MEGAN'S LAW DATABASE DISCLOSURE: Notice: Pursuant to Section 290.46 of the Penal Code, information about specifiedregistered sex offenders is made available to the public via an Internet Web site maintained by the Department of Justice atwww.meganslaw.ca.gov. Depending on an offender's criminal history, this information will include either the address at which the offender resides or the community of residence and ZIP Code in which he or she resides. (Neither Seller nor Brokers are required tocheck this website. If Buyer wants further information, Broker recommends that Buyer obtain information from this website duringBuyer's inspection contingency period. Brokers do not have expertise in this area.) D. NOTICE REGARDING GAS AND HAZARDOUS LIQUID TRANSMISSION PIPELINES: This notice is being provided simply to informyou that information about the general location of gas and hazardous liquid transmission pipelines is available to the public via theNational Pipeline Mapping System (NPMS) Internet Web site maintained by the United States Department of Transportation athttp:/lwww.npms.phmsa.dot.gov/. To seek further information about possible transmission pipelines near the Property, you may contact your local gas utility or other pipeline operators in the area. Contact information for pipeline operators is searchable by ZIP Code and county on the NPMS Internet Web site. E.CONDOMINIUM/PLANNED DEVELOPMENT DISCLOSURES: (1) SELLER HAS: 7 (or ) Days After Acceptance to disclose to Buyer whether the Property is a condominium, or is located in a planned development or other common interest subdivision (C.A.R. Form VLQ). (2) If the Property is a condominium or is located in a planned development or other common interest subdivision, Seller has 3 (or_) Days After Acceptance to request from the HOA (C.A.R. Form HOA1): (i) Copies of any documents required by Law; (ii) disclosure of any pending or anticipated claim or litigation by or against the HOA; (iii) a statement containing the location and number ofdesignated parking and storage spaces; (iv) Copies of the most recent 12 months of HOA minutes for regular and special meetings;and (v) the names and contact information of all HOAs governing the Property (collectively, "Cl Disclosures"). Seller shall itemize and Deliver to Buyer all Cl Disclosures received from the HOA and any Cl Disclosures in Seller's possession. Buyer's approval of ClDisclosures is a contingency of this Agreement as specified in paragraph 198(3). The Party specified in paragraph 9, as directed byescrow, shall deposit funds into escrow or direct to HOA or management company to pay for any of the above.13.SELLER DOCUMENTATION AND ADDITIONAL DISCLOSURE: A. Within the time specified in paragraph 19, if Seller has actual knowledge, Seller shall provide to Buyer, in writing, the following information: (1) LEGAL PROCEEDINGS: Any lawsuits by or against Seller, threatening or affecting the Property, including any lawsuits alleging a defect or deficiency in the Property or common areas, or any known notices of abatement or citations filed or issued against the Property. (2)AGRICULTURAL USE: Whether the Property is subject to restrictions for agricultural use pursuant to the Williamson Act (Government Code §§51200-51295). (3) DEED RESTRICTIONS: Any deed restrictions or obligations. (4) FARM USE: Whether the Property is in, or adjacent to, an area with Right to Farm rights (Civil Code §3482.5 and §3482.6). (5) ENDANGERED SPECIES: Presence of endangered, threatened, 'candidate' species, or wetlands on the Property. (6) ENVIRONMENTAL HAZARDS: Any substances, materials, or products that may be an environmental hazard including, but not limited to, asbestos, formaldehyde, radon gas, lead-based paint, fuel or chemical storage tanks, and contaminated soil or water on the Property. (7) COMMON WALLS: Any features of the Property shared in common with adjoining landowners, such as walls, fences, roads, and driveways, and agriculture and domestic wells whose use or responsibility for maintenance may have an effect on the Property.(8) LANDLOCKED: The absence of legal or physical access to the Property. (9) EASEMENTS/ENCROACHMENTS: Any encroachments, easements or similar matters that may affect the Property.(10)SOIL FILL: Any fill (compacted or otherwise), or abandoned mining operations on the Property.(11)SOIL PROBLEMS: Any slippage, sliding, flooding, drainage, grading, or other soil problems. (12) EARTHQUAKE DAMAGE: Major damage to the Property or any of the structures from fire, earthquake, floods, or landslides.(13) ZONING ISSUES: Any zoning violations, non-conforming uses, or violations of "setback" requirements.(14) NEIGHBORHOOD PROBLEMS: Any neighborhood noise problems, or other nuisances. B. RENTAL AND SERVICE AGREEMENTS: Within the time specified in paragraph 19, Seller shall make available to Buyer for inspectionand review, all current leases, rental agreements, service contracts and other related agreements, licenses, and permits pertaining to the operation or use of the Property. C.0 TENANT ESTOPPEL CERTIFICATES: Within the time specified in paragraph 19, Seller shall deliver to Buyer tenant estoppelcertificates (C.A.R. Form TEC) completed by Seller or Seller's agent, and signed by tenants, acknowledging: (i) that tenants' rental or lease agr s are unmodified and in full force and effect (or if modified, stating all such modifications); (ii) that no lessor defaultsexist; and ii' s ti the amount of any prepaid rent or security deposit.//,/ �Buyer's Initials ( l���mr.ici�.-.,.----� Seller's Initials ( � ) ( ___ __, 1.:J'VLPA REVISED 1 11) •-"""•"'Ap VACANT LANO PURCHASE AGREEMENT (VLPA PAGE 4 OF 11)"'""""'�N Produced with Lone Wolf Transactions (zipForm Edition) 231 Shearson Cr. Cambridge. Ontario. Canada N1T 1J5 www.lwolf.com Jamadrn lllvd • DocuSign Envelope ID: 73F78F9D-5428-41 AC-9A7C-F41 B0391 EF96 Property Address: Jamacha Blvd, Spring Valley. CA 91978 Date: August 24, 2020D.MELLO-ROOS TAX; 1915 BOND ACT: Within the time specified in paragraph 19, Seller shall: (i} make a good faith effort to obtain a notice from any local agencies that levy a special tax or assessment on the Property (or, if allowed, substantially equivalent notice}, pursuant to the Mello-Roos Community Facilities Act, and Improvement Bond Act of 1915, and (ii} promptly deliver to Buyer any such notice obtained. E.SELLER VACANT LAND QUESTIONNAIRE: Seller shall, within the time specified in paragraph 19, complete and provide Buyer with aSeller Vacant Land Questionnaire (CAR. Form VLQ).14.SUBSEQUENT DISCLOSURES: In the event Seller, prior to Close Of Escrow, becomes aware of adverse conditions materially affectingthe Property, or any material inaccuracy in disclosures, information or representations previously provided to Buyer of which Buyer is otherwise unaware, Seller shall promptly provide a subsequent or amended disclosure or notice, in writing, covering those items. However,a subsequent or amended disclosure shall not be required for conditions and material inaccuracies disclosed in reports orderedand paid for by Buyer. 15. CHANGES DURING ESCROW:A.Prior to Close Of Escrow, Seller may engage in the following acts, ("Proposed Changes"}, subject to Buyer's rights in paragraph 15B: (i}rent or lease any part of the premises; (ii} alter, modify or extend any existing rental or lease agreement; (iii} enter into, alter, modify or extend any service contract(s); or (iv) change the status of the condition of the Property. B.At leastr(or 2 } Days prior to any Proposed Changes, Seller shall give written notice to Buyer of such Proposed Changes. Within 5(or_) Days After receipt of such notice, Buyer, in writing, may give Seller notice of Buyer's objection to the Proposed Changes, in which case Seller shall not make the Proposed Changes.16. CONDITION OF PROPERTY: Unless otherwise agreed in writing: (i} the Property is sold (a) "AS-IS" in its PRESENT physical condition asof the date of Acceptance and (b} subject to Buyer's Investigation rights; (ii} the Property, including pool, spa, landscaping and grounds, isto be maintained in substantially the same condition as on the date of Acceptance; and (iii} all debris and personal property not included in the sale shall be removed by Close Of Escrow.A.Seller shall, within the time specified in paragraph 19A, DISCLOSE KNOWN MATERIAL FACTS AND DEFECTS affecting the Property,including known insurance claims within the past five years, and make any and all other disclosures required by law.B.Buyer has the right to conduct Buyer Investigations of the property and, as specified in paragraph 19B, based upon informationdiscovered in those investigations: (i) cancel this Agreement; or (ii) request that Seller make Repairs or take other action.C. Buyer is strongly advised to conduct investigations of the entire Property in order to determine its present condition. Sellermay not be aware of all defects affecting the Property or other factors that Buyer considers important. Property improvementsmay not be built according to code, in compliance with current Law, or have had permits issued. 17. BUYER'S INVESTIGATION OF PROPERTY AND MATTERS AFFECTING PROPERTY:A. Buyer's acceptance of the condition of, and any other matter affecting the Property, is a contingency of this Agreement as specified in this paragraph and paragraph 19B. Within the time specified in paragraph 198(1}, Buyer shall have the right, at Buyer's expense unlessotherwise agreed, to conduct inspections, investigations, tests, surveys and other studies ("Buyer Investigations"}, including, but notlimited to, the right to: (i} inspect for lead-based paint and other lead-based paint hazards; (ii) inspect for wood destroying pests andorganisms; (iii} review the registered sex offender database; (iv} confirm the insurability of Buyer and the Property; and (v} satisfyBuyer as to any matter specified in the attached Buyer's Inspection Advisory (CAR. Form BIA). Without Seller's prior written consent,Buyer shall neither make nor cause to be made: (i} invasive or destructive Buyer Investigations except for minimally invasive testing; or (ii) inspections by any governmental building or zoning inspector or government employee, unless required by Law.B.Seller shall make the Property available for all Buyer Investigations. Buyer shall (i} as specified in paragraph 19B, complete BuyerInvestigations and, either remove the contingency or cancel this Agreement, and (ii) give Seller, at no cost, complete Copies of all Investigation reports obtained by Buyer, which obligation shall survive the termination of this Agreement.C.Buyer indemnity and Seller protection for entry upon property: Buyer shall: (i} keep the Property free and clear of liens; (ii} repairall damage arising from Buyer Investigations; and (iii} indemnify and hold Seller harmless from all resulting liability, claims, demands,damages and costs of Buyer's Investigations. Buyer shall carry, or Buyer shall require anyone acting on Buyer's behalf to carry, policiesof liability, workers' compensation and other applicable insurance, defending and protecting Seller from liability for any injuries topersons or property occurring during any Buyer Investigations or work done on the Property at Buyer's direction prior to Close Of Escrow. Seller is advised that certain protections may be afforded Seller by recording a "Notice of Non-responsibility" (CAR. FormNNR} for Buyer Investigations and work done on the Property at Buyer's direction. Buyer's obligations under this paragraph shallsurvive the termination or cancellation of this Agreement and Close Of Escrow.D. BUYER IS STRONGLY ADVISED TO INVESTIGATE THE CONDITION AND SUITABILITY OF ALL ASPECTS OF THE PROPERTYAND ALL MATTERS AFFECTING THE VALUE OR DESIRABILITY OF THE PROPERTY, INCLUDING BUT NOT LIMITED TO, THEITEMS SPECIFIED BELOW. IF BUYER DOES NOT EXERCISE THESE RIGHTS, BUYER IS ACTING AGAINST THE ADVICE OFBROKERS. BUYER UNDERSTANDS THAT ALTHOUGH CONDITIONS ARE OFTEN DIFFICULT TO LOCATE AND DISCOVER,ALL REAL PROPERTY CONTAINS CONDITIONS THAT ARE NOT READILY APPARENT AND THAT MAY AFFECT THE VALUEOR DESIRABILITY OF THE PROPERTY. BUYER AND SELLER ARE AWARE THAT BROKERS DO NOT GUARANTEE, AND IN NO WAY ASSUME RESPONSIBILITY FOR, THE CONDITION OF THE PROPERTY. BROKERS HAVE NOT AND WILL NOT VERIFY ANY OF THE ITEMS IN THIS PARAGRAPH 17, UNLESS OTHERWISE AGREED IN WRITING.E. SIZE, LINES, ACCESS AND BOUNDARIES: Lot size, property lines, legal or physical access and boundaries including features of theProperty shared in common with adjoining landowners, such as walls, fences, roads and driveways, whose use or responsibility for maintenance may have an effect on the Property and any encroachments, easements or similar matters that may affect the Property.(Fences, hedges, walls and other natural or constructed barriers or markers do not necessarily identify true Property boundaries.Property lines may be verified by survey.} (Unless otherwise specified in writing, any numerical statements by Brokers regarding lot sizeare APPROXIMATIONS ONLY, which have not been and will not be verified, and should not be relied upon by Buyer.)F.ZONING AND LAND USE: Past, present, or proposed laws, ordinances, referendums, initiatives, votes, applications and permitsaffecting the current use of the Property, future development, zoning, building, size, governmental permits and inspections. Any zoningviolations, non-conforming uses, or violations of "setback" requirements. (Buyer should also investigate whether these matters affectBuyer's intended use of the Property.)G. UTILITIES sSERVICES: Availability, costs, restrictions and location of utilities and services, including but not limited to, sewerage, leach lines, water, electricity, gas, telephone, cable TV and drainage. , A J -1-• ...,-,c, .... .,..,..""..,. .... ..,--r.J..,....,,....,.... Seller's Initials ( /P ) ( 5 OF 11) VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 5 OF 11) Produced w,th Lone Wolf Transaclions (zipForm Edition) 231 Shearson Cr. Cambridge, Ontano, Canada NH 1J5 www.lwolf.com General Counsel .Janrn<'lm IJl,.,J - OocuSign Envelope 10: 73F78F90-5428-41AC-9A7C-F41 B0391 EF96 Property Address: Jamacha Blvd, Spring Vallev. CA 91978 Date: August 24, 2020 H.ENVIRONMENTAL HAZARDS: Potential environmental hazards, including, but not limited to, asbestos, lead-based paint and otherlead contamination, radon, methane, other gases, fuel, oil or chemical storage tanks, contaminated soil or water, hazardous waste,waste disposal sites, electromagnetic fields, nuclear sources, and other substances, including mold (airborne, toxic or otherwise),fungus or similar contaminant, materials, products or conditions.I. GEOLOGIC CONDITIONS: Geologic/seismic conditions, soil and terrain stability, suitability and drainage including any slippage,sliding, flooding, drainage, grading, fill (compacted or otherwise), or other soil problems.J.NATURAL HAZARD ZONE: Special Flood Hazard Areas, Potential Flooding (Inundation) Areas, Very High Fire Hazard Zones, StateFire Responsibility Areas, Earthquake Fault Zones, Seismic Hazard Zones, or any other zone for which disclosure is required by Law.K.PROPERTY DAMAGE: Major damage to the Property or any of the structures or non-structural systems and components and anypersonal property included in the sale from fire, earthquake, floods, landslides or other causes.L.NEIGHBORHOOD, AREA AND PROPERTY CONDITIONS: Neighborhood or area conditions, including Agricultural Use Restrictions pursuant to the Williamson Act (Government Code §§51200-51295), Right To Farm Laws (Civil Code §3482.5 and §3482.6),schools, proximity and adequacy of law enforcement, crime statistics, the proximity of registered felons or offenders, fire protection, othergovernment services, availability, adequacy and cost of any speed-wired, wireless internet connections or other telecommunications orother technology services and installations, proximity to commercial, industrial or agricultural activities, existing and proposedtransportation, construction and development that may affect noise, view, or traffic, airport noise, noise or odor from any source,abandoned mining operations on the Property, wild and domestic animals, other nuisances, hazards, or circumstances, protectedspecies, wetland properties, botanical diseases, historic or other governmentally protected sites or improvements, cemeteries, facilitiesand condition of common areas of common interest subdivisions, and possible lack of compliance with any governing documents orHomeowners' Association requirements, conditions and influences of significance to certain cultures and/or religions, and personalneeds, requirements and preferences of Buyer.M.COMMON INTEREST SUBDIVISIONS: OWNER ASSOCIATIONS: Facilities and condition of common areas (facilities such as pools, tennis courts, walkways, or other areas co-owned in undivided interest with others), Owners' Association that has any authority over thesubject property, CC&Rs, or other deed restrictions or obligations, and possible lack of compliance with any Owners' Associationrequirements. N. SPECIAL TAX: Any local agencies that levy a special tax on the Property pursuant to the Mello-Roos Community Facilities Act or Improvement Bond Act of 1915.0.RENTAL PROPERTY RESTRICTIONS: Some cities and counties impose restrictions that limit the amount of rent that can be charged,the maximum number of occupants and the right of a landlord to terminate a tenancy.P.MANUFACTURED HOME PLACEMENT: Conditions that may affect the ability to place and use a manufactured home on the Property.18.TITLE AND VESTING:A. Within the time specified in paragraph 19, Buyer shall be provided a current preliminary title report ("Preliminary Report"). The Preliminary Report is only an offer by the title insurer to issue a policy of title insurance and may not contain every item affecting title. Buyer's review of the Preliminary Report and any other matters which may affect title are a contingency of this Agreement as specified in paragraph 198. Thecompany providing the Preliminary Report shall, prior to issuing a Preliminary Report, conduct a search of the General Index for all Sellersexcept banks or other institutional lenders selling properties they acquired through foreclosure (REOs), corporations, and government entities. Seller shall within 7 Days After Acceptance, give Escrow Holder a completed Statement of Information. B. Title is taken in its present condition subject to all encumbrances, easements, covenants, conditions, restrictions, rights and othermatters, whether of record or not, as of the date of Acceptance except for: (i) monetary liens of record (which Seller is obligated to pay off) unless Buyer is assuming those obligations or taking the Property subject to those obligations; and (ii) those matters which Seller has agreed to remove in writing.C.Within the time specified in paragraph 19A, Seller has a duty to disclose to Buyer all matters known to Seller affecting title, whether ofrecord or not.D. At Close Of Escrow, Buyer shall receive a grant deed conveying title (or, for stock cooperative or long-term lease, an assignment of stock certificate or of Seller's leasehold interest), including oil, mineral and water rights if currently owned by Seller. Title shall vest as designated in Buyer's supplemental escrow instructions. THE MANNER OF TAKING TITLE MAY HAVE SIGNIFICANT LEGAL AND TAX CONSEQUENCES. CONSULT AN APPROPRIATE PROFESSIONAL.E. Buyer shall receive a "CL TA/AL TA Homeowners Policy of Title Insurance", if applicable to the type of property and buyer. A titlecompany, at Buyer's request, can provide information about the availability, desirability, coverage, and cost of various title insurancecoverages and endorsements. If Buyer desires title coverage other than that required by this paragraph, Buyer shall instruct EscrowHolder in writing and shall pay any increase in cost.19. TIME PERIODS; REMOVAL OF CONTINGENCIES; CANCELLATION RIGHTS: The following time periods may only be extended,altered, modified or changed by mutual written agreement. Any removal of contingencies or cancellation under this paragraph by either Buyer or Seller must be exercised in good faith and in writing (C.A.R. Form CR or CC).A. SELLER HAS: .T(or 2 ) Days After Acceptance to Deliver to Buyer all Reports, disclosures and information for which Seller is responsible under paragraphs 3M, 7A, 8, 9, 12A, B, and E, 13, 16A and 18A. Buyer after first Delivering to Seller a Notice to Seller toPerform (CAR. Form NSP) may cancel this Agreement if Seller has not Delivered the items within the time specified.B. (1) BUYER HAS: �(or _Q_) Days After Acceptance, unless otherwise agreed in writing, to: (i) complete all Buyer Investigations; review all disclosures, reports, and other applicable information, which Buyer receives from Seller; and approve all matters affecting the Property; and (ii) Deliver to Seller Signed Copies of Statutory Disclosures and other disclosures Delivered by Seller in accordance with paragraph 12A.(2)Within the time specified in paragraph 198(1 ), Buyer may request that Seller make repairs or take any other action regarding theProperty (CAR. Form RR). Seller has no obligation to agree to or respond to (CAR. Form RRRR) Buyer's requests.(3)By the end of the time specified in paragraph 198(1) (or as otherwise specified in this Agreement), Buyer shall Deliver to Seller aremoval of the applicable contingency or cancellation (CAR. Form CR or CC) of this Agreement. However, if any report, disclosureor information for which Seller is responsible is not Delivered within the time specified in paragraph 19A, then Buyer has 5 ( or _ ) Days Afte&J)elivery of any such items, or the time specified in paragraph 198(1 ), whichever is later, to Deliver to Seller a removal of the a pli le ontingency or cancellation of this Agreement. Seller's Initials ( ,/'tit( )( OF 11) VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 6 OF 11) Produced w,th Lone Wott Transactions (zipForm Edition) 231 Shearson Cr Cambndge. Ontario. Canada N1T 1J5 www.lwolf.com Jamacha Blvd - DocuSign Envelope ID: 73F78F9D-5428-41AC-9A7C-F41 B0391 EF96 Property Address: Jamacha Blvd, Spring Valley, CA 91978 Date: August 24, 2020 (4) Continuation of Contingency: Even after the end of the time specified in paragraph 198(1) and before Seller cancels, if at all, pursuant to paragraph 19C, Buyer retains the right, in writing, to either (i) remove remaining contingencies, or (ii) cancel this Agreement based on a remaining contingency. Once Buyer's written removal of all contingencies is Delivered to Seller, Seller maynot cancel this Agreement pursuant to paragraph 19C(1 ).C. SELLER RIGHT TO CANCEL:(1)Seller right to Cancel; Buyer Contingencies: If, by the time specified in this Agreement, Buyer does not Deliver to Seller a removal of the applicable contingency or cancellation of this Agreement, then Seller, after first Delivering to Buyer a Notice to Buyerto Perform (C.A.R. Form NBP), may cancel this Agreement. In such event, Seller shall authorize the return of Buyer's deposit,except for fees incurred by Buyer.(2) Seller right to Cancel; Buyer Contract Obligations: Seller, after first delivering to Buyer a NBP, may cancel this Agreement if, bythe time specified in this Agreement, Buyer does not take the following action(s): (i) Deposit funds as required by paragraph 3A or 3B or if the funds deposited pursuant to paragraph 3A or 3B are not good when deposited; (ii) Deliver a notice of FHA or VA costs or terms as required by paragraph 30(3) (C.A.R. Form FVA); (iii) Deliver a letter as required by paragraph 3J(1 ); (iv) Deliververification as required by paragraph 3C or 3H or if Seller reasonably disapproves of the verification provided by paragraph 3C or3H; (v) Return Statutory Disclosures as required by paragraph 12A; or (vi) Sign or initial a separate liquidated damages form for an increased deposit as required by paragraphs 3B and 27B; or (vii) Provide evidence of authority to sign in a representative capacityas specified in paragraph 19. In such event, Seller shall authorize the return of Buyer's deposit, except for fees incurred by Buyer.D.NOTICE TO BUYER OR SELLER TO PERFORM: The NBP or NSP shall: (i) be in writing; (ii) be signed by the applicable Buyer orSeller; and (iii) give the other Party at least 2 (or _) Days After Delivery (or until the time specified in the applicable paragraph, whichever occurs last) to take the applicable action. A NBP or NSP may not be Delivered any earlier than 2 Days Prior to the expiration of the applicable time for the other Party to remove a contingency or cancel this Agreement or meet an obligation specified in paragraph19. E.EFFECT OF BUYER'S REMOVAL OF CONTINGENCIES: If Buyer removes, in writing, any contingency or cancellation rights, unlessotherwise specified in writing, Buyer shall conclusively be deemed to have: (i) completed all Buyer Investigations, and review of reportsand other applicable information and disclosures pertaining to that contingency or cancellation right; (ii) elected to proceed with the transaction; and (iii) assumed all liability, responsibility and expense for Repairs or corrections pertaining to that contingency or cancellation right, or for the inability to obtain financing.F.CLOSE OF ESCROW: Before Buyer or Seller may cancel this Agreement for failure of the other Party to close escrow pursuant to thisAgreement, Buyer or Seller must first Deliver to the other Party a demand to close escrow (C.A.R. Form DCE). The DCE shall: (i) be signed by the applicable Buyer or Seller; and (ii) give the other Party at least 3 (or ) Days After Delivery to close escrow. A DCEmay not be Delivered any earlier than 3 Days Prior to the scheduled close of escrow ___ _G. EFFECT OF CANCELLATION ON DEPOSITS: If Buyer or Seller gives written notice of cancellation pursuant to rights duly exercisedunder the terms of this Agreement, the Parties agree to Sign mutual instructions to cancel the sale and escrow and release deposits, ifany, to the party entitled to the funds, less fees and costs incurred by that party. Fees and costs may be payable to service providersand vendors for services and products provided during escrow. Except as specified below, release of funds will require mutualSigned release instructions from the Parties, judicial decision or arbitration award. If either Party fails to execute mutualinstructions to cancel escrow, one Party may make a written demand to Escrow Holder for the deposit (C.A.R. Form BORD or SDRD).Escrow Holder, upon receipt, shall promptly deliver notice of the demand to the other Party. If, within 10 Days After Escrow Holder'snotice, the other Party does not object to the demand, Escrow Holder shall disburse the deposit to the Party making the demand. If Escrow Holder complies with the preceding process, each Party shall be deemed to have released Escrow Holder from any and all claims or liability related to the disbursal of the deposit. Escrow Holder, at its discretion, may nonetheless require mutual cancellationinstructions. A Party may be subject to a civil penalty of up to $1,000 for refusal to sign cancellation instructions if no good faith dispute exists as to who is entitled to the deposited funds (Civil Code §1057.3).20.REPAIRS: Repairs shall be completed prior to final verification of condition unless otherwise agreed in writing. Repairs to be performed at Seller's expense may be performed by Seller or through others, provided that the work complies with applicable Law, includinggovernmental permit, inspection and approval requirements. Repairs shall be performed in a good, skillful manner with materials of qualityand appearance comparable to existing materials. It is understood that exact restoration of appearance or cosmetic items following all Repairs may not be possible. Seller shall: (i) obtain invoices and paid receipts for Repairs performed by others; (ii) prepare a writtenstatement indicating the Repairs performed by Seller and the date of such Repairs; and (iii) provide Copies of invoices and paid receiptsand statements to Buyer prior to final verification of condition. 21.FINAL VERIFICATION OF CONDITION: Buyer shall have the right to make a final verification of the Property within 5 (or _) Days Priorto Close Of Escrow, NOT AS A CONTINGENCY OF THE SALE, but solely to confirm: (i) the Property is maintained pursuant to paragraph16; (ii) Repairs have been completed as agreed; and (iii) Seller has complied with Seller's other obligations under this Agreement (C.A.R.Form VP).22.ENVIRONMENTAL HAZARD CONSULTATION: Buyer and Seller acknowledge: (i) Federal, state, and local legislation impose liabilityupon existing and former owners and users of real property, in applicable situations, for certain legislatively defined, environmentallyhazardous substances; (ii) Broker(s) has/have made no representation concerning the applicability of any such Law to this transaction or toBuyer or to Seller, except as otherwise indicated in this Agreement; (iii) Broker(s) has/have made no representation concerning the existence, testing, discovery, location and evaluation of/for, and risks posed by, environmentally hazardous substances, if any, located on or potentially affecting the Property; and (iv) Buyer and Seller are each advised to consult with technical and legal experts concerning the existence, testing, discovery, location and evaluation of/for, and risks posed by, environmentally hazardous substances, if any, located on or potentially affecting the Property. illrn Buyer's Initials ( � VLPA REVISED 12/18 (PAGE 7 OF 11) App � Form By:._-1-"""""'---GenralCounsel Seller's Initials ( .,r//f VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 7 OF 11) ) ( Produced with Lone Wolf Transactions (zipForm Edition) 231 Shearson Cr. Cambridge, Ontario, Canada N1T 1J5 www.lwolf.com Jnmachn Blvd - DocuSign Envelope ID: 73F78F9D-5428-41AC-9A7C-F41B0391EF96 Property Address: Jamacha Blvd, Spring Valley, CA 91978 Date: August 24, 2020 23.PRORATIONS OF PROPERTY TAXES AND OTHER ITEMS: Unless otherwise agreed in writing, the following items shall bePAID CURRENT and prorated between Buyer and Seller as of Close Of Escrow: real property taxes and assessments, interest, rents, HOA regular, special, and emergency dues and assessments imposed prior to Close Of Escrow, premiums on insurance assumedby Buyer, payments on bonds and assessments assumed by Buyer, and payments on Mello-Roos and other Special AssessmentDistrict bonds and assessments that are now a lien. The following items shall be assumed by Buyer WITHOUT CREDIT toward the purchase price: prorated payments on Mello-Roos and other Special Assessment District bonds and assessments and HOA special assessments that are now a lien but not yet due. Property will be reassessed upon change of ownership. Any supplemental tax bills shall be paid as follows: (i) for periods after Close Of Escrow, by Buyer; and (ii) for periods prior to Close Of Escrow, by Seller (see CAR.Form SPT or SBSA for further information). TAX BILLS ISSUED AFTER CLOSE OF ESCROW SHALL BE HANDLED DIRECTLYBETWEEN BUYER AND SELLER. Prorations shall be made based on a 30-day month.24.BROKERS: A. COMPENSATION: Seller or Buyer, or both, as applicable, agrees to pay compensation to Broker as specified in a separate writtenagreement between Broker and that Seller or Buyer. Compensation is payable upon Close Of Escrow, or if escrow does not close, asotherwise specified in the agreement between Broker and that Seller or Buyer.B.SCOPE OF DUTY: Buyer and Seller acknowledge and agree that Broker: (i) Does not decide what price Buyer should pay or Sellershould accept; (ii) Does not guarantee the condition of the Property; (iii) Does not guarantee the performance, adequacy or completeness of inspections, services, products or repairs provided or made by Seller or others; (iv) Does not have an obligation toconduct an inspection of common areas or areas off the site of the Property; (v) Shall not be responsible for identifying defects on theProperty, in common areas, or offsite unless such defects are visually observable by an inspection of reasonably accessible areas of the Property or are known to Broker; (vi) Shall not be responsible for inspecting public records or permits concerning the title or use of Property; (vii) Shall not be responsible for identifying the location of boundary lines or other items affecting title; (viii) Shall not be responsible for verifying square footage, representations of others or information contained in Investigation reports, Multiple ListingService, advertisements, flyers or other promotional material; (ix) Shall not be responsible for determining the fair market value of theProperty or any personal property included in the sale; (x) Shall not be responsible for providing legal or tax advice regarding anyaspect of a transaction entered into by Buyer or Seller; and (xi) Shall not be responsible for providing other advice or information thatexceeds the knowledge, education and experience required to perform real estate licensed activity. Buyer and Seller agree to seeklegal, tax, insurance, title and other desired assistance from appropriate professionals.25.REPRESENTATIVE CAPACITY: If one or more Parties is signing the Agreement in a representative capacity and not for him/herself as anindividual then that Party shall so indicate in paragraph 37 or 38 and attach a Representative Capacity Signature Disclosure (CAR. FormRCSD). Wherever the signature or initials of the representative identified in the RCSD appear on the Agreement or any related documents, ii shall be deemed to be in a representative capacity for the entity described and not in an individual capacity, unless otherwise indicated.The Party acting in a representative capacity (i) represents that the entity for which that party is acting already exists and (ii) shall Deliver tothe other Party and Escrow Holder, within 3 Days After Acceptance, evidence of authority to act in that capacity (such as but not limited to:applicable portion of the trust or Certification Of Trust (Probate Code §18100.5), letters testamentary, court order, power of attorney,corporate resolution, or formation documents of the business entity).26.JOINT ESCROW INSTRUCTIONS TO ESCROW HOLDER: A. The following paragraphs, or applicable portions thereof, of this Agreement constitute the joint escrow instructions of Buyer and Seller to Escrow Holder, which Escrow Holder is to use along with any related counter offers and addenda, and any additional mutual instructions to close the escrow: paragraphs 1, 3, 4B, 5, 6, 7A, 8, 9, 12B, 18, 19G, 23, 24A, 25, 26, 32, 35, 36, 37, 38 andparagraph D of the section titled Real Estate Brokers on page 11. If a Copy of the separate compensation agreement(s) provided for inparagraph 24A, or paragraph D of the section titled Real Estate Brokers on page 10 is deposited with Escrow Holder by Broker, Escrow Holder shall accept such agreement(s) and pay out from Buyer's or Seller's funds, or both, as applicable, the Broker's compensationprovided for in such agreement(s). The terms and conditions of this Agreement not set forth in the specified paragraphs are additionalmatters for the information of Escrow Holder, but about which Escrow Holder need not be concerned. Buyer and Seller will receiveEscrow Holder's general provisions, if any, directly from Escrow Holder and will execute such provisions within the time specified inparagraph 98(1 )(c). To the extent the general provisions are inconsistent or conflict with this Agreement, the general provisions willcontrol as to the duties and obligations of Escrow Holder only. Buyer and Seller will execute additional instructions, documents andforms provided by Escrow Holder that are reasonably necessary to close the escrow and, as directed by Escrow Holder, within 3 (or_ ) Days, shall pay to Escrow Holder or HOA or HOA management company or others any fee required by paragraphs 9, 12 orelsewhere in this Agreement.B.A Copy of this Agreement including any counter offer(s) and addenda shall be delivered to Escrow Holder within 3 Days AfterAcceptance(or ______________ ).Buyer and Seller authorize Escrow Holder to accept and rely on Copies andSignatures as defined in this Agreement as originals, to open escrow and for other purposes of escrow. The validity of this Agreementas between Buyer and Seller is not affected by whether or when Escrow Holder Signs this Agreement. Escrow Holder shall provideSeller's Statement of Information to Title company when received from Seller. If Seller delivers an affidavit to Escrow Holder to satisfySeller's FIRPTA obligation under paragraph 12B, Escrow Holder shall deliver to Buyer a Qualified Substitute statement that complieswith federal Law.C. Brokers are a party to the escrow for the sole purpose of compensation pursuant to paragraph 24A and paragraph D of the sectiontitled Real Estate Brokers on page 11. Buyer and Seller irrevocably assign to Brokers compensation specified in paragraph 24A, and irrevocably instruct Escrow Holder to disburse those funds to Brokers at Close Of Escrow or pursuant to any other mutually executedcancellation agreement. Compensation instructions can be amended or revoked only with the written consent of Brokers. Buyer andSeller shall release and hold harmless Escrow Holder from any liability resulting from Escrow Holder's payment to Broker(s) ofcompensation pursuant to this Agreement. D.Upon receipt, Escrow Holder shall provide Seller and Seller's Broker verification of Buyer's deposit of funds pursuant to paragraph 3Aand 3B. Once Escrow Holder becomes aware of any of the following, Escrow Holder shall immediately notify all Brokers: (i) if Buyer's initial or any additional deposit is not made pursuant to this Agreement, or is not good at time of deposit with Escrow Holder; or (ii) ifBuyer an r instruct Escrow Holder to cancel escrow. Buyer's Initials ( Seller's Initials ( ) ( VLPA REVISED 12/18 (PAGE 8 OF 11) VACANT LAND PUR CHASE AGREEMENT (VLPA PAGE 8 OF 11) Produced with Lone Wolf Transactions (zipForm Edition) 231 Shearson Cr. Cambndge, Ontario, Canada NH 1J5 www.lwolf.com Jnmachn Ulvd • DocuSign Envelope ID: 73F78F9D-5428-41AC-9A7C-F4180391 EF96 Property Address: Jamacha Blvd, Spring Valley, CA 91978 Date: August 24, 2020 E. A Copy of any amendment that affects any paragraph of this Agreement for which Escrow Holder is responsible shall bedelivered to Escrow Holder within 3 Days after mutual execution of the amendment.27. REMEDIES FOR BUYER'S BREACH OF CONTRACT: A. Any clause added by the Parties specifying a remedy (such as release or forfeiture of deposit or making a deposit nonrefundable) for failure of Buyer to complete the purchase in violation of this Agreement shall be deemed invalid unlessthe clause independently satisfies the statutory liquidated damages requirements set forth in the Civil Code.8. LIQUIDATED DAMAGES: If Buyer fails to complete this purchase because of Buyer's default, Seller shall retain, asliquidated damages, the deposit actually paid. Buyer and Seller agree that this amount is a reasonable sum giventhat it is impractical or extremely difficult to establish the amount of damages that would actually be suffered bySeller in the event Buyer were to breach this Agreement. Release of funds will require mutual, Signed release instructions from both Buyer and Seller, judicial decision or arbitration award. AT TIME OF ANY INCREASED DEPOSITBUYER AND SELLER SHALL SIGN A SEPARATE LIQUIDATED DAMAGES PROVISION INCORPORATING THEINCREASED DEPOSIT AS LIQUIDATEmAGES (CAR.FORM ffiD). Buyer's Initials v)V)v:\ Seller's Initials ..../d--'---- 28.DISPUTE RESOLUTION: A. MEDIATION: The Parties agree to mediate any dispute or claim arising between them out of this Agreement, or any resultingtransaction, before resorting to arbitration or court action through the C.A. R. Consumer Mediation Center (www.consumermediation.org) or through any other mediation provider or service mutually agreed to by the Parties. The Partiesalso agree to mediate any disputes or claims with Broker(s), who, in writing, agree to such mediation prior to, or withina reasonable time after, the dispute or claim is presented to the Broker. Mediation fees, if any, shall be divided equallyamong the Parties involved. If, for any dispute or claim to which this paragraph applies, any Party (i) commences an actionwithout first attempting to resolve the matter through mediation, or (ii) before commencement of an action, refuses to mediateafter a request has been made, then that Party shall not be entitled to recover attorney fees, even if they would otherwise beavailable to that Party in any such action. THIS MEDIATION PROVISION APPLIES WHETHER OR NOT THE ARBITRATIONPROVISION IS INITIALED. Exclusions from this mediation agreement are specified in paragraph 28C.8.ARBITRATION OF DISPUTES: The Parties agree that any dispute or claim in Law or equity arising between them out of this Agreement or any resulting transaction, which is not settled through mediation, shall be decided by neutral, binding arbitration. The Parties also agree to arbitrate any disputes or claims with Broker(s), who, in writing, agree to such arbitration prior to, or within areasonable time after, the dispute or claim is presented to the Broker. The arbitrator shall be a retired judge or justice, or an attorney with at least 5 years of transactional real estate Law experience, unless the parties mutually agree to adifferent arbitrator. The Parties shall have the right to discovery in accordance with Code of Civil Procedure §1283.05. Inall other respects, the arbitration shall be conducted in accordance with Title 9 of Part 3 of the Code of Civil Procedure.Judgment upon the award of the arbitrator(s) may be entered into any court having jurisdiction. Enforcement of this agreement to arbitrate shall be governed by the Federal Arbitration Act. Exclusions from this arbitration agreement arespecified in paragraph 28C."NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISINGOUT OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION DECIDED BYNEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTSYOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING INTHE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL,UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE 'ARBITRATION OF DISPUTES'PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOUMAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVILPROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY.""WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MA TIERS INCLUDED IN THE •oo=N OF DISPUTES' PROVISION TO NEUTRAL ARBITRATION." Buyer's Initials ... ====--�-Seller's Initials ..#--1 ___ _ C.ADDITIONAL MEDIATION AND ARBIT �S: (1)EXCLUSIONS: The following matters are excluded from mediation and arbitration: (i) a judicial or non-judicialforeclosure or other action or proceeding to enforce a deed of trust, mortgage or installment land sale contractas defined in Civil Code §2985; (ii) an unlawful detainer action; and (iii) any matter that is within the jurisdictionof a probate, small claims or bankruptcy court. (2)PRESERVATION OF ACTIONS: The following shall not constitute a waiver nor violation of the mediation andarbitration provisions: (i) the filing of a court action to preserve a statute of limitations; (ii) the filing of a courtaction to enable the recording of a notice of pending action, for order of attachment, receivership, injunction, orother provisional remedies; or (iii) the filing of a mechanic's lien. (3)BROKERS: Brokers shall not be obligated nor compelled to mediate or arbitrate unless they agree to do so in writing. Any Broker(s) participating in mediation or arbitration shall not be deemed a party to the Agreement. 29. SELECTION OF SERVICE PROVIDERS: Brokers do not guarantee the performance of any vendors, service or product providers("Providers" , bether referred by Broker or selected by Buyer, Seller or other person. Buyer and Seller may select ANY Providersof their ow c��il)!il_-_Buyer's Initials ( -'J...lY� Seller's Initials ( /JI ) ( VLPA REVISE 9 OF 11) f.'..A VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 9 OF 11) Produced with Lone Wolf Transactions (zipForm Ed1lion) 231 Shearson Cr. Cambndge. Onlano, Canada NH 1J5 www.lwolf.com ,Jnnrnrlrn Blvd • DocuSign Envelope ID: 73F78F9O-5428-41AC-9A7C-F4180391 EF96 Property Address: Jamacha Blvd, Spring Valley, CA 91978 Date: August 24, 2020 30. MULTIPLE LISTING SERVICE ("MLS"): Brokers are authorized to report to the MLS a pending sale and, upon Close Of Escrow,the sales price and other terms of this transaction shall be provided to the MLS to be published and disseminated to persons andentities authorized to use the information on terms approved by the MLS. 31.ATTORNEY FEES: In any action, proceeding, or arbitration between Buyer and Seller arising out of this Agreement, the prevailingBuyer or Seller shall be entitled to reasonable attorneys fees and costs from the non-prevailing Buyer or Seller, except as providedin paragraph 28A. 32.ASSIGNMENT: Buyer shall not assign all or any part of Buyer's interest in this Agreement without first having obtained the written consent of Seller. Such consent shall not be unreasonably withheld unless otherwise agreed in writing. Any total or partial assignment shall not relieve Buyer of Buyer's obligations pursuant to this Agreement unless otherwise agreed in writing by Seller (CAR. Form AOAA). 33. EQUAL HOUSING OPPORTUNITY: The Property is sold in compliance with federal, state and local anti-discrimination Laws. 34. TERMS AND CONDITIONS OF OFFER: This is an offer to purchase the Property on the above terms and conditions. The liquidated damages paragraph or the arbitration of disputes paragraph is incorporated in this Agreement if initialed by all Parties orif incorporated by mutual agreement in a counteroffer or addendum. If at least one but not all Parties initial, a counter offer isrequired until agreement is reached. Seller has the right to continue to offer the Property for sale and to accept any other offer atany time prior to notification of Acceptance. Buyer has read and acknowledges receipt of a Copy of the offer and agrees to theconfirmation of agency relationships. If this offer is accepted and Buyer subsequently defaults, Buyer may be responsible forpayment of Brokers' compensation. This Agreement and any supplement, addendum or modification, including any Copy, may be Signed in two or more counterparts, all of which shall constitute one and the same writing.35.TIME OF ESSENCE; ENTIRE CONTRACT; CHANGES: Time is of the essence. All understandings between the Parties are incorporated in this Agreement. Its terms are intended by the Parties as a final, complete and exclusive expression of theirAgreement with respect to its subject matter, and may not be contradicted by evidence of any prior agreement or contemporaneousoral agreement. If any provision of this Agreement is held to be ineffective or invalid, the remaining provisions will nevertheless begiven full force and effect. Except as otherwise specified, this Agreement shall be interpreted and disputes shall be resolved in accordance wth the Laws of the State of California. Neither this Agreement nor any provision in it may be extended, amended, modified, altered or changed, except in writing Signed by Buyer and Seller.36.DEFINITIONS: As used in this Agreement:A. "Acceptance" means the time the offer or final counter offer is accepted in writing by a Party and is delivered to and personally received by the other Party or that Party's authorized agent in accordance with the terms of this offer or a final counter offer.B."Agreement" means this document and any counter offers and any incorporated addenda, collectively forming the bindingagreement between the Parties. Addenda are incorporated only when Signed by all Parties.C."C.A.R. Form" means the most current version of the specific form referenced or another comparable form agreed to by the parties. D."Close Of Escrow" means the date the grant deed, or other evidence of transfer of title, is recorded.E."Copy" means copy by any means including photocopy, NCR, facsimile and electronic.F."Days" means calendar days. However, after Acceptance, the last Day for performance of any act required by this Agreement(including Close Of Escrow) shall not include any Saturday, Sunday, or legal holiday and shall instead be the next Day.G. "Days After" means the specified number of calendar days after the occurrence of the event specified, not counting the calendar date on which the specified event occurs, and ending at 11 :59 PM on the final day.H."Days Prior" means the specified number of calendar days before the occurrence of the event specified, not counting thecalendar date on which the specified event is scheduled to occur.I."Deliver", "Delivered" or "Delivery", unless otherwise specified in writing, means and shall be effective upon: personalreceipt by Buyer or Seller or the individual Real Estate Licensee for that principal as specified in the section titled Real EstateBrokers on page 11, regardless of the method used (i.e., messenger, mail, email, fax, other).J."Electronic Copy" or "Electronic Signature" means, as applicable, an electronic copy or signature complying with California Law. Buyer and Seller agree that electronic means will not be used by either Party to modify or alter the content or integrity ofthis Agreement without the knowledge and consent of the other Party. K. "Law" means any law, code, statute, ordinance, regulation, rule or order, which is adopted by a controlling city, county, state orfederal legislative, judicial or executive body or agency.L."Repairs" means any repairs (including pest control), alterations, replacements, modifications or retrofitting of the Propertyprovided for under this Agreement. M. "Signed" means either a handwritten or electronic signature on an original document, Copy or any counterpart. 37. EXPIRATION OF OFFER: This offer shall be deemed revoked and the deposit, if any, shall be returned to Buyer unless the offer isSigned by Seller and a Copy of the Signed offer is personally received by Buyer, or by Vince Provenzano , who is authorized to receive it, by 5:00 PM on the third Day after this offer is signed by Buyer (or by ___ UAM/ LJ PM, on___________ (date)).LJ One or more Buyers is signing the Agreement in a representative capacity and not for him/herself as an individual. See attached Representative Capacity Signature Disclosure tr.AR. Form RCSD-B) for additional terms. 8/27/2020 �,O_::.:ig#b� Date _____ BUYER __ ,_,,.__� )Jt'-<----------------------------- (Print name) Dan Miller W?IDEA4s21•c• .. Da� ____ BUYER (Print name) __________________________________________ _ UAdditional Signature Addendum attached (CAR. Form ASA). VLPA REVISED 12/18 (PAGE 10 OF 11) Seller's Initials ( ) ( VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 10 OF 11) Produced w,lh Lone Wo� Transactions (ZipForm Edition) 231 Shearson Cr. Cambridge. Ontario. Canada NH 1J5 www.lwolf com Janrnt'lm Bh·d - DocuSign Envelope ID: 73F78F9D-5428-41AC-9A7C-F41 B0391 EF96 Property Address: Jamacha Blvd, Spring Valley, CA 91978 Date: August 24, 202038. ACCEPTANCE OF OFFER: Seller warrants that Seller is the owner of the Property, or has the authority to execute this Agreement.Seller accepts the above offer and agrees to sell the Property on the above terms and conditions, and agrees to the aboveconfirmation of agency relationships. Seller has read and acknowledges receipt of a Copy of this Agreement, and authorizesBroker to Deliver a Signed Copy to Buyer.0 (If checked) SELLER'S ACCEPTANCE IS SUBJECT TO A TT ACHED COUNTER OFFER (C.A.R. Form SCO or SMCO) DATED: D One or more Sellers is signing the Agreement in a representative capacity and not for him/herself as an individual. See attached Representative Capacity Signature Disclosure (C A. . Form RCSD-S) for additional terms. Date '1 '"L,'Lo SELLER (Print name) OWD Jose Martine Date ____ SELLER (Print name) __________________________________________ _ □Additional Signature Addendum attached (C.A.R. Form ASA). (_I_) (Do not initial if making a counter offer.) CONFIRMATION OF ACCEPTANCE: A Copy of Signed Acceptance was(Initials) �rsonaJ!.¥ received by Buyer or Buyer's authorized agent on (date) ________ ,--___ at __ ...,.....--,-�LJ AM/ LJ PM. A binding Agreement is created when a Copy of Signed Acceptance is personally received by Buyer or Buyer's authorized agent whether or not confirmed in this document. Completion of this confirmation is not legally required in order to create a binding Agreement; it is solely intended to evidence the date that Confirmation of Acceptance has occurred. REAL ESTATE BROKERS: A.Real Estate Brokers are not parties to the Agreement between Buyer and Seller. B. Agency relationships are confirmed as stated in paragraph 2. C.If specified in paragraph 3A(2), Agent who submitted the offer for Buyer acknowledges receipt of deposit.D.COOPERATING (BUYER'S) BROKER COMPENSATION: Seller's Broker agrees to pay Buyer's Broker and Buyer's Broker agreesto accept, out of Seller's Broker's proceeds in escrow, the amount specified in the MLS, provided Buyer's Broker is a Participant ofthe MLS in which the Property is offered for sale or a reciprocal MLS. If Seller's Broker and Buyer's Broker are not both Participantsof the MLS, or a reciprocal MLS, in which the Property is offered for sale, then compensation must be specified in a separate writtenagreement (C.A.R. Form CBC). Declaration of License and Tax (C.A.R. Form DL T) may be used to document that tax reporting willbe required or that an exemption exists.E.PRESENTATION OF OFFER: Pursuant to Standard of Practice 1-7, if Buyer's Broker makes a written request, Seller's Broker shallconJirrni�.�//Jng_ that this offer has been presented to Seller. B v� P--ww� Vince Provenzano DRE Lie.# 00780182B�s '13ro�erage Firm Pacific Coast Commercial B aEaJs93s21EE�sa DRE Lie. # Address 10721 Treena Street, Suite 200 City San DiegoTelephone 619.469.3600 Fax 858.560.5604 E-mail vincepro(@,cox.net B ll�t ���"•4 Vince Provenzano DRE Lie.# 00780182 SE•lil<!!l'll!!• F;m, Pacmc Coast Comme,dal B DRE Lie.# Ad resta3593e21FE�ee. .City Telephone Fax E-mail ESCROW HOLDER ACKNOWLEDGMENT: Escrow Holder acknowledges receipt of a Copy of this Agreement. (if checked, 0 a deposit in the amount of$ counter offer numbers O Seller's Statement of Information and DRE Lic. ���f} Date Date State CA Zip 92131 DRE Lie. #oy��9�zeDate 7- Date State ___ Zip ), , and agrees to act as Escrow Holder subject to paragraph 26 of this Agreement. any supplemental escrow instructions and the terms of Escrow Holder's general provisions. Escrow Holder is advised that the date of Confirmation of Acceptance of the Agreement as between Buyer and Seller is Escrow Holder Escrow# By Date Address Phone/F ax/E-mail Escrow Holder has the following license number# 0 Department of Business Oversight, 0 Department of Insurance, 0 Department of Real Estate. PRESENTATION OF OFFER: ( ) Seller's Broker presented this offer to Seller on (date). Broker or Designee Initials REJECTION OF OFFER: ( )( ) No counter offer is being made. This offer was rejected by Seller on (date). Seller's Initials 01996-2018, California Association of REALTORS®. Inc. United States copyright law (TiUe 17 U.S. Code) forbids the unauthorized distribution. display and reproduction of this form. or any portion thereof, by photocopy machine or any other means. including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSION os I] Published and Distributed by: Buyer's Acknowledg REAL ESTATE BUSINESS SERVICES, LLC. this Agreement ( a subsidiary of the CALIFORNIA ASSOC/A TION OF REAL TORS® -\:=::=�:..:....::::::---7",�f . 525 South Virgil Avenue. Los Angeles, California 90020 VLPA REVISED 12118 (PAGE 11 OF 11) VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 11 OF 11) Produced with Lone Wolf Transactions (ZJpForm Edition) 231 Shearson Cr. Cambndge, Ontano. Canada NH 1J5 www lwolf.com Janrnclrn Blvd - DocuSign Envelope ID: 73F78F9D-5428-41AC-9A7C-F41 B0391 EF96 CALIFORNIA ASSOCIATION OF REALTORS® BUYER'S VACANT LAND ADDITIONAL INSPECTION ADVISORY (C.A.R. Form BVLIA, 11/13) Property Address: Jamacha Blvd, Spring Vallev. CA 91978 ("Property"). A. IMPORTANCE OF PROPERTY INVESTIGATION: The physical condition of the land and improvements being purchased is not guaranteed by either Seller or Brokers. For this reason, you should conduct thorough investigations of the Property personally and withprofessionals who should provide written reports of their investigations. A general physical inspection typically does not cover allaspects of the Property nor items affecting the Property that are not physically located on the Property. If the professionals recommendfurther investigations, including a recommendation by a pest control operator to inspect inaccessible areas of the Property, you shouldcontact qualified experts to conduct such additional investigations. Additionally, some inspections, such as those listed below, may beof particular importance when purchasing vacant land. B.BUYER RIGHTS AND DUTIES: You have an affirmative duty to exercise reasonable care to protect yourself, including discovery of the legal, practical and technical implications of disclosed facts, and the investigation and verification of information and facts thatyou know or that are within your diligent attention and observation. The purchase agreement gives you the right to investigate theProperty. If you exercise this right, and you should, you must do so in accordance with the terms of that agreement. This is the bestway for you to protect yourself. It is extremely important for you to read all written reports provided by professionals and to discuss theresults of inspections with the professional who conducted the inspection. You have the right to request that Seller make repairs, corrections or take other action based upon items discovered in your investigations or disclosed by Seller. If Seller is unwilling orunable to satisfy your requests, or you do not want to purchase the Property in its disclosed and discovered condition, you have theright to cancel the agreement if you act within specific time periods. If you do not cancel the agreement in a timely and proper manner,you may be in breach of contract. C.SELLER RIGHTS AND DUTIES: Seller is required to disclose to you material facts known to him/her that affect the value ordesirability of the Property. However, Seller may not be aware of some Property defects or conditions. Seller does not have anobligation to inspect the Property for your benefit nor is Seller obligated to repair, correct or otherwise cure known defects that aredisclosed to you or previously unknown defects that are discovered by you or your inspectors during escrow. The purchase agreementobligates Seller to make the Property available to you for investigations. D. BROKER OBLIGATIONS: Brokers do not have expertise in all areas and therefore cannot advise you on many items, such as soilstability, geologic or environmental conditions, hazardous or illegal controlled substances, structural conditions of the foundation or other improvements, or the condition of the roof, plumbing, heating, air conditioning, electrical, sewer, septic, waste disposal, or othersystem. The only way to accurately determine the condition of the Property is through an inspection by an appropriate professionalselected by you. If Broker gives you referrals to such professionals, Broker does not guarantee their performance. You may select anyprofessional of your choosing. If you have entered into a written agreement with a Broker, the specific terms of that agreement willdetermine the nature and extent of that Broker's duty to you. YOU ARE STRONGLY ADVISED TO INVESTIGATE THE CONDITION AND SUITABILITY OF ALL ASPECTS OF THE PROPERTY. IF YOU DO NOT DO SO, YOU ARE ACTING AGAINST THE ADVICE OF BROKERS. E. YOU ARE ADVISED TO CONDUCT INVESTIGATIONS OF THE ENTIRE PROPERTY, INCLUDING, BUT NOT LIMITED TO THEFOLLOWING: 1. FINANCE: Financing the purchase of vacant land finance and especially financing construction loans for the improvementof vacant land can provide particular challenges, including subordination agreements and insurance requirements. Buyer isadvised to seek the assistance of reputable lenders in assistance with their decisions regarding financing of the property. 2. CONSTRUCTION COSTS: If Buyer is contemplating building improvements on the property, Buyer is advised that they will have to contact directly any contractors, service providers, suppliers, architects, utility companies regarding the costs ofimprovements. Buyer is advised to get written bids from all such persons regarding their decision to develop the property. 3. UTILITIES: Unimproved property may or may not have utilities available to the property. Buyer(s) is advised to obtain information from the public or private utility provider about the availability and cost of providing utilities to the property andwhether necessary easements are in place to allow such utilities to the property. 4. ENVIRONMENTAL SURVEY: Unimproved land may have had or may have hazardous materials stored upon or under the land or been used by persons engaged in activities exposing the land to hazardous materials. The land may also be host toprotected vegetation or animal life. Buyer(s) is advised to satisfy themselves as what hazards or protected plant or animal life are on the property and what impact they may have on Buyer's future plans for the property by seeking the help of a qualified p�: ional. Buyer's Initials ( WV'JA� .......... --�",_,.,.,..-,,--.,. Seller's Initials ( Liv/ ) �--� Ap / © 2013, California Association of REAL TORS®, Inc. BVLIA 11/13 (PAGE 1 OF 2) BUYER'S VACANT LAND ADDITIONAL INSPECTION ADVISORY BVLIA PAGE 1 OF 2 Pacific Const Commercial. 10721 Trtt:na Street, Sui1e 200 San Diego CA 92131 Phone: 619.469.3600 Fax: 858.560.5604 Vince rroveniano Produced with Lone \Nolf Transactions (zipForm Edition) 231 Shearson Cr. Cambridge, Ontario, Canada N1T 1J5 www.lwolf.com Jamndm 131vd • DocuSign Envelope ID: 73F78F9D-5428-41AC-9A7C-F41 B0391 EF96 Property Address: Jamacha Blvd, Spring Valley, CA 91978 Date: _________ _ 5.NATURAL HAZARDS REPORTS: Buyer(s) is advised that while certain disclosures are required by state, federal and local laws,hazard disclosure companies can provide additional disclosures for both natural and man-made hazards or nuisances for a cost.Buyer is advised to seek the advice of a natural hazards reporting company regarding additional reports and disclosures thatbuyer may wish to obtain. 6. SUBDIVISION OF THE PROPERTY: If Buyer's plans include future subdivision of the property (whether under the SubdivisionMap Act of the Subdivided Lands Law) multiple, complex issues regarding city, county, state, and federal laws may be presented. Buyer is strongly advised to seek the advice of California legal counsel familiar with federal, state and local subdivisionrequirements. Buyer and Seller acknowledge and agree that Broker: (i) Does not decide what price Buyer should pay or Seller should accept; (ii) Does not guarantee the· condition of the Property; (iii) Does not guarantee the performance, adequacy or completeness of inspections, services, products or repairs provided or made by Seller or others; (iv) Does not have an obligation to conduct an inspection of common areas or areas off the site of the Property; (v) Shall not be responsible for identifying defects on the Property, in common areas, or offsite unless such defects are visually observable by an inspection of reasonably accessible areas of the Property or are known to Broker; (vi) Shall not be responsible for inspecting public records or permits concerning the title or use of Property; (vii) Shall not be responsible for identifying the location of boundary lines or other items affecting title; (viii) Shall not be responsible for verifying square footage, representations of others or information contained in Investigation reports, Multiple Listing Service, advertisements, flyers or other promotional material; (ix) Shall not be responsible for providing legal or tax advice regarding any aspect of a transaction entered into by Buyer or Seller; and (x) Shall not be responsible for providing other advice or information that exceeds the knowledge, education and experience required to perform real estate licensed activity. Buyer and Seller agree to seek legal, tax, insurance, title and other desired assistance from appropriate professionals. By signing below, Buyer and Seller each acknowledge that they have read, understand, accept and have received a Copy of this Advisory. Buyer is encouraged to read it carefully. SELLER �� Date "\-<..•-ZP OWD,�nez, General Manager SELLER BUYER BUYER �OocuSigned by: �/ Date ________ _ 8/27/2020 Date _________ _ Date ________ _ CC 2013, California Association of REALTORS®, Inc. United States copyright law (Title 17 U.S. Code) forbids the unauthorized distribution, display and reproduction of this fonn, or any portion thereof, by photocopy machine or any other means. including facsimile or computerized fonnats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE. CONSULT AN APPROPRIATE PROFESSIONAL. This fonn is made available to real estate professionals through an agreement with or purchase from the Cal�omia Association of REAL TORS®. It is not intended to identify the user as a REALTOR®. REAL TOR® is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REALTORS® who subscribe to its Code of Ethics. ll Published and Distributed by: REAL ESTATE BUSINESS SERVICES, LLC. a subsidiary of the California Association of REAL TORS® • 525 South Virgil Avenue, Los Angeles, California 90020 BVLIA 11/13 (PAGE 2 OF 2) BUYER'S VACANT LAND ADDITIONAL INSPECTION ADVISORY (BVLIA PAGE 2 OF 2) Produced w,tll Lone Wolf Transactions (zipForm Edition) 231 Shearson Cr. Cambridge, Ontario. Canada NH 1J5 www lwolf.com Jamacha Blvd • DocuSign Envelope ID: 73F78F9D-5428-41AC-9A7C-F4180391 EF96 �-� C A L I F O R. N I A �., ASSOCIATION � OF REALTOR.S'.E CALIFORNIA CONSUMER PRIVACY ACT ADVISORY (C.A.R. Form CCPA, 12/19) As of January 1, 2020, the California Consumer Privacy Act (commencing with Civil Code § 1798.100) ("CCPA") grants to California residents certain rights in their private, personal information that is collected by companies with whom they do business. Under the CCPA, "personal information" is defined broadly to encompass non-public records information that could reasonably be linked directly or indirectly to you, including, potentially, photographs of or sales information about your property. Some of your personal information will be collected and likely shared with others during the process of buying and selling real estate. Depending on the situation, you may have the right to "opt out" or stop the transfer of your personal information to others and request that certain businesses delete your personal information altogether. Not all businesses you interact with are required to comply with the law, primarily just those who meet the criteria of a covered "Business" as set forth in Section 1798.140 (c)). For more information, you may ask your Broker for a copy of the C.A.R. Legal Q&A on the subject. A real estate broker is likely to submit personal information to a Multiple Listing Service ("MLS") in order to help find a buyer for a seller's property. Through the MLS, the information is made available to real estate brokers and salespeople, and others. Even after a sale is complete, the MLS distributes sales information to the real estate community. Brokers, agents and MLSs may also share your personal information with others who post the personal information on websites or elsewhere, or otherwise use it. Thus, there are various service providers and companies in a real estate transaction who may be engaged in using or sharing data involving your personal information. If your broker is a covered Business, it should have a privacy policy explaining your rights on its website and giving you an opportunity to request that personal information not be shared, used and even deleted. Even if your real estate brokerage is a covered Business, it needs, and is allowed, to keep your information to effectuate a sale and, by law, is required to maintain such information for three years to comply with regulatory requirements. Not all brokers are covered Businesses, however, and those that are not, do not have to comply with the CCPA. Similarly, most MLSs will not be considered a covered Business. Instead, the MLS may be considered a Third Party in the event a covered Business (ex: brokerages, real estate listing aggregation or advertising internet sites or other outlets who meet the criteria of covered Businesses) exchanges personal information with the MLS. You do not have the right under the CCPA to require a Third Party to delete your personal information. And like real estate brokerages, even if an MLS is a covered Business, MLSs are also required by law to retain and make accessible in its computer system any and all listing and other information for three years. Whether an MLS is a covered Business or a Third Party, you have a right to be notified about the sharing of your personal information and your right to contact a covered Business to opt out of your personal information being used, or shared with Third Parties. Since the MLSs and/or other entities receiving your personal information do not have direct contact with buyers and sellers and also may not be aware of which entities exchanging personal information are covered Businesses, this form is being used to notify you of your rights under the CCPA and your ability to direct requests to covered Businesses not to share personal information with Third Parties. One way to limit access to your personal information, is to inform your broker or salesperson you want to opt-out of the MLS, and if so, you will be asked to sign a document (Form SELM) confirming your request to keep your listing off the MLS. However, if you do so, it may be more difficult to sell your property or obtain the highest price for it because your property will not be exposed to the greatest number of real estate licensees and others. I/we acknowledge receipt of a copy of this California Consumer Privacy Act Advisory. 8/27/2020 Date _______ _ � tis21 ... Buyer/Seller/Landlord/TenantC �� □=�= Buyer/Seller/Landlord/Tenant_"'"""-,::-�;.,:.,::"'-'""""'_,,_....£. ______________ Date __ ct_-_-Z_-_-z..o ___ _ � 2019. California Association of REALTORS®. Inc. United States copyright law (Title 17 U.S. Code) forbids the unauthorized distribution. display and reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS®. NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE. CONSULT AN APPROPRIATE PROFESSIONAL. This form is made available to real estate professionals through an agreement with or purchase from the California Association of REAL TORS®. It is not intended to identify the user as a REAL TOR®. REAL TOR® is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REALTORS® who subscribe to its Code of Ethics. [_ Published and Distributed by: REAL ESTATE BUSINESS SERVICES. LLC. a subsidiary of the CALIFORNIA ASSOCIATION OF REAL TORS® 525 South Virgil Avenue, Los Angeles, California 90020 CCPA 12/19 (PAGE 1 OF 1) Ap CALIFORNIA CONSUMER PRIVACY ACT ADVISORY CCPA PAGE 1 OF 1 P:tcilic Coast Commercial, 10721 Trtt1u1 Slrttl. Suite 200 San Diego CA 92131 Phone: 619.-169.3600 Fax: 858.560.S60.i Vince Pro\·en:iano Produced with Lone VVolf Transactions (zipForm Edition) 231 Shearson Cr. Cambridge, Ontario. Canada N1T 1J5 www.lwolf.com Jamncha Bh·d - STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 7, 2020 SUBMITTED BY: Doug Rahders, Fleet Maintenance Supervisor PROJECT: P2282 DIV. NO.All APPROVED BY: Pedro Porras, Chief Water Operations Jose Martinez, General Manager SUBJECT: AUTHORIZE THE PURCHASE OF SIX (6) FLEET VEHICLES GENERAL MANAGER’S RECOMMENDATION: Authorize the General Manager to issue purchase orders to: •Ford of Chula Vista in the amount of $102,986.76 for the purchase three (3) 2021 Ford F-150 Pick-up Trucks; •Fairview Ford in the amount of $84,056.04 for the purchase of two (2) 2021 Ford F-250 Pick-up Trucks; and, •Fritts Ford in the amount of $29,590.75 for the purchase ofone (1) 2021 Ford Ranger Pick-up Truck. For a total of six (6) fleet vehicles and a total cost of $216,633.55. COMMITTEE ACTION: See Attachment “A.” PURPOSE: To obtain Board authorization to purchase six (6) fleet replacement vehicles from the vendors specified with the lowest responsive quotes. ANALYSIS: There are eight (8) vehicles included in the approved CIP P2282 FY21 budget; one (1) 3/4 ton truck was already purchased and one AGENDA ITEM 4 (1) compact vehicle which will be an off-the-lot purchase thatwill not require upfitting and will be purchased separately. The requested six (6) vehicles will replace five (5) of the following units and will add one (1) vehicle for the new SCADA Instrumentation Technician: •#157 (2006 Ford E-250 SCADA System Van – 67,000 miles) •#167 (2007 Toyota Tacoma Recycle System Truck – 137,912 miles) •#204 (2010 Ford F-150 Pick-up Truck – 92,700 miles) •#205 (2010 Ford F-150 Pick-up Truck – 94,850 miles) •#219 (2013 Ford F-150 Water System Truck – 105,604 miles) These vehicles have exceeded the District’s vehicle replacement program of seven (7) years and/or 100,000 miles for non-commercial vehicles. •Unit #157 is utilized by SCADA Instrumentation staff to perform field maintenance on all field instrumentation andPLCs. •Unit #167 is utilized by Fleet Maintenance staff to perform field maintenance on generators and engines locatedthroughout the District’s service area, primarily at pump stations. •Unit #204 is utilized by Construction Inspection staff forfield inspection of construction work related to water, recycled water, and wastewater systems. •Unit #205 is utilized by Survey Department’s Utility Locatorwho oversees utility location requests, maps underground utility installations, and assists GIS staff in mapping ofnew and revised District facilities. •Unit #219 is assigned to Water Systems Operators tasked withoperating the water distribution system and responding towater emergencies. •The second 2021 Ford F-250 pick-up truck with service body isan addition to the fleet and will be operated by the SCADA Instrumentation Technician that was added to the SCADAInstrumentation Department in FY20. Quotes were solicited for six (6) vehicles via BidSync, the District’s purchasing solicitation system. Multiple quotes were received and are shown below. Prices received include all applicable fees, taxes, and delivery. Funding for these purchases is included in CIP P2282, Vehicle Capital Purchases Program. Three (3) 2021 Ford F-150 Pick-up Trucks Dealer Bid Price Ford of Chula Vista – Chula Vista, CA $102,986.76 Fairview Ford – San Bernardino, CA $104,429.55 Fritts Ford – Riverside, CA $117,938.01 Two (2) 2021 Ford F-250 Pick-up Trucks Dealer Bid Price Fairview Ford – San Bernardino, CA $84,056.04 Ford of Chula Vista – Chula Vista, CA $90,712.50 Fritts Ford – Riverside, CA $91,741.40 One (1) 2021 Ford Ranger Pick-up Truck Dealer Bid Price Fritts Ford – Riverside, CA $29,590.75 Ford of Chula Vista – Chula Vista, CA $29,638.77 Fairview Ford – San Bernardino, CA $30,175.52 FISCAL IMPACT: Joe Beachem, Chief Financial Officer The total cost for the six (6) vehicles is $216,633.55 which will be charged against the Vehicle Capital Purchases CIP P2282, which was approved by the Board during the budget process with an amount of $315,000.00. The total cost will not exceed budgeted funding. The Finance Department has determined that 100 percent of the funds are available in the replacement fund. The following expenditure summary shows the eight (8) vehicles which were budgeted in CIP P2282 for FY21, including the six (6) vehicles being requested in this staff report: Total CIP P2282 Vehicle ReplacementsFY21 Budget: $315,000.00 Six (6) Fleet Trucks - Proposed $216,633.55 One (1)3/4 Ton Truck - Purchased $41,275.88 One (1) Compact Vehicle - Budgeted $25,200.00 Projected CIP P2282 FY21 Under Budget:$31,890.57 STRATEGIC GOAL: Operate the system to meet demand twenty-four (24) hours a day, seven (7) days a week. LEGAL IMPACT: None. Attachment A - Committee Action Attachment B - Photos of Vehicles ATTACHMENT A SUBJECT/PROJECT: AUTHORIZE THE PURCHASE OF SIX (6) FLEET VEHICLES COMMITTEE ACTION: The Finance and Administration Committee reviewed this item at a meeting held on September 22, 2020 and the following comments were made: Upon completion of the discussion, the committee supported staff’s recommendation and presentation to the full board on the consent calendar. Ford Ranger Ford F-150 ATTACHMENT B Ford F-250 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 7, 2020 SUBMITTED BY: Melissa Apuy, Senior Accountant PROJECT: DIV. NO. All APPROVED BY: Joseph R. Beachem, Chief Financial Officer Jose Martinez, General Manager SUBJECT: Fiscal Year 2020 Board of Directors’ Expenses GENERAL MANAGER’S RECOMMENDATION: This is an informational item only. COMMITTEE ACTION: Please see Attachment A. PURPOSE: To present the Board of Directors’ expenses for Fiscal Year 2020. ANALYSIS: The California Government Code Section 53065.5 requires special districts, at least annually, to disclose any reimbursement paid by a district within the immediately preceding fiscal year. In addition, the District’s Code of Ordinances Policy 8 echoes this requirement. To meet these requirements, staff prepares and presents the Board of Directors’ expenses on an annual basis. The reimbursements and per diems paid by the District for Fiscal Year 2020 are summarized in the table on the following page and detailed in Attachments C-H. AGENDA ITEM 5 2 The above table displays the expenses by category and by Director. The expenses totaled $83,474.20 with $61,560, or 73.7%, of the expenses stemming from the Director’s fees. In response to the COVID-19 pandemic, the District’s Board temporarily increased its meeting frequency from monthly to weekly, or bi-weekly, between March and May. The purpose of the increased frequency was to stay abreast of the District’s emergency response to the pandemic and the constantly changing pandemic environment. As the environment surrounding the pandemic stabilized the Board returned to the normal monthly meeting schedule in June 2020. FISCAL IMPACT: None. STRATEGIC GOAL: Prudently manage District funds. LEGAL IMPACT: Compliance with state law and District Code of Ordinance Policy 8. Attachments: Attachment A Committee Action Attachment B Directors’ Expenses and Per Diems Attachment C-H Directors’ Expenses Detail ATTACHMENT A SUBJECT/PROJECT: Fiscal Year 2020 Board of Directors’ Expenses COMMITTEE ACTION: This item was presented to the Finance and Administration Committee at a meeting held on September 22, 2020. This is an informational item only. The following comments were made: BOARD OF DIRECTORS’ EXPENSES AND PER DIEMS Board of Directors Meeting October 7, 2020 ATTACHMENT B California Government Code Section 53065.5 and Otay Water District’s Code of Ordinances Policy 8 require that staff present the Expenses and Per Diems for the Board of Directors on an annual basis: •Fiscal Year 2020. •The expenses are shown by Board member and expense type. •This presentation is in alphabetical order. •This information was presented to the Finance and Administration Committee on September 22, 2020. OTAY WATER DISTRICT BOARD EXPENSES July 1, 2019 -June 30, 2020 Croucher Gastelum Robak Smith Thompson Total Business Meetings $ 30.00 $ 772.00 $ 510.36 $ 169.32 $ 600.60 $ 2,082.28 Director's Fees 9,272.00 14,592.00 14,136.00 9,272.00 14,288.00 61,560.00 Mileage Business 100.88 1,795.36 715.08 353.20 770.48 3,735.00 Mileage Commuting 31.05 239.22 18.50 332.52 488.54 1,109.83 Conferences and Seminars -1,571.14 1,324.00 -20.00 2,915.14 Travel -4,313.70 5,767.03 -1,991.22 12,071.95 Community Events ------ Total $ 9,433.93 $ 23,283.42 $ 22,470.97 $ 10,127.04 $ 18,158.84 $ 83,474.20 ATTACHMENT C OTAY WATER DISTRICT ADMINISTRATIVE EXPENSES -BOARD JULY 1, 2019 -JUNE 30, 2020 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Total GARY D. CROUCHER (DETAILED IN ATTACHMENT D) 5214 Business Meetings $ $ $ $ $ 30.00 $ $ $ $ $ $ $ $ 30.00 5281 Director's Fees 304.00 304.00 456.00 608.00 608.00 304.00 912.00 608.00 1,368.00 1,520.00 1,520.00 760.00 9,272.00 5211 Mileage -Business 17.40 11.60 5.18 24.15 21.85 10.35 10.35 100.88 5211 Mileage -Commuting 20.70 6.90 3.45 31.05 5213 Seminars and Conferences 5212 Travel 5222 Community Events Total $ 304.00 $321.40 $467.60 $608.00 $ 638.00 $304.00 $ 937.88 $ 639.05 $ 1,393.30 $ 1,520.00 $1,530.35 $770.35 $ 9,433.93 HECTOR GASTELUM (DETAILED IN ATTACHMENT E) 5214 Business Meetings $ 120.00 $30.00 $$ 45.00 $367.00 $$ 40.00 $ 170.00 $ $ $ $ $ 772.00 5281 Director's Fees 1,520.00 1,368.00 1,520.00 1,520.00 1,368.00 1,368.00 1,064.00 1,520.00 1,368.00 912.00 760.00 304.00 14,592.00 5211 Mileage -Business 356.12 131.08 314.94 118.32 136.88 472.12 93.40 146.05 26.45 1,795.36 5211 Mileage -Commuting 31.32 41.76 10.44 20.88 31.32 51.75 41.40 10.35 239.22 5213 Seminars and Conferences 1,230.00 216.14 125.00 1,571.14 5212 Travel 204.12 213.68 310.66 328.01 3,257.23 4,313.70 5222 Community Events Total s 2,027.44 s 1,774.96 s 2,059.06 s 1,704.20 3,443.86 s 2,168.13 s 1,249.15 s 5,350.82 1,404.80 s 912.00 s 760.00 $ 429.00 $ 23,283.42 MARKROBAK(DETAILED IN ATTACHMENT F) 5214 Business Meetings $ 65.00 $ 30.00 $45.00 $ 45.00 $165.36 $$ 40.00 $ 120.00 $$ $ $ 510.36 5281 Director's Fees 912.00 760.00 1,368.00 1,216.00 1,368.00 1,216.00 1,064.00 1,368.00 1,520.00 1,368.00 1,216.00 760.00 14,136.00 5211 Mileage -Business 78.30 33.64 80.04 108.46 103.24 103.82 53.48 94.30 59.80 715.08 5211 Mileage -Commuting 2.32 2.32 2.32 2.32 2.32 2.30 2.30 2.30 18.50 5213 Seminars and Conferences 725.00 599.00 1,324.00 5212 Travel 5,523.31 79.00 164.72 5,767.03 5222 Community Events Total $ 1,057.62 $ 825.96 $7,018.67 $ 1.371.78 $2,363.92 $ 1,398.82 $ 1.159.78 $ 2,348.32 $ 1,582.10 $ 1,368.00 $ 1,216.00 $ 760.00 $ 22,470.97 TIM SMITH (DETAILED IN ATTACHMENT G) 5214 Business Meetings $ 19.46 $$ 54.73 $ 9.73 $ 54.73 $ $ 9.73 $ 20.94 $ $ $ $ $ 169.32 5281 Director's Fees 608.00 912.00 456.00 912.00 608.00 152.00 1,216.00 760.00 1,216.00 912.00 912.00 608.00 9,272.00 5211 Mileage -Business 35.96 51.04 44.08 91.64 61.48 18.40 33.35 17.25 353.20 5211 Mileage -Commuting 27.84 41.76 13.92 41.76 13.92 13.92 110.40 55.20 13.80 332.52 5213 Seminars and Conferences 5212 Travel 5222 Community Events Total $ 691.26 $1,004.80 $568.73 $1,055.13 $738.13 $ 165.92 $ 1,354.53 $869.49 $1,247.05 $912.00 $ 9I2.00 $608.00 $ 10,127.04 OTAY WATER DISTRICT ADMINISTRATIVE EXPENSES -BOARD JULY 1, 2019 -JUNE 30, 2020 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Total MITCHELL THOMPSON (DETAILED IN ATTACHMENT H) 5214 Business Meetings $ 75.00 $ $ l19.17 $ 20.00 $ 16.43 s 300.00 $ $ 50.00 $ 20.00 $ $ $ $ 600.60 5281 Director's Fees 912.00 1,520.00 1,216.00 1,520.00 1,216.00 1,064.00 1,368.00 1,064.00 1,216.00 1,520.00 1,216.00 456.00 14,288.00 52]] Mileage -Business 81.20 73.66 223.30 93.38 109.04 32.48 51.04 75.90 30.48 770.48 52]! Mileage -Commuting 45.24 67.86 30.16 75.40 75.40 15.08 104.65 44.85 29.90 488.54 5213 Seminars and Conferences 20.00 20.00 5212 Travel 462.45 220.30 1,308.47 1,991.22 5222 Community Events Total $ 1,113.44 $ 2,123.97 $ 1,808.93 $ 1,708.78 $ 1,416.87 $ 2,720.03 $ 1,543.69 $ 1,234.75 $ 1,296.38 $ 1,520.00 $ 1,216.00 $ 456.00 $ 18,158.84 TOTALS: 5214 Business Meetings $ 279.46 $ 60.00 $ 218.90 $ 119.73 $ 633.52 $ 300.00 $ 89.73 $ 360.94 $ 20.00 $ $ $ $ 2,082.28 5281 Director's Fees 4,256.00 4,864.00 5,016.00 5,776.00 5,168.00 4,104.00 5,624.00 5,320.00 6,688.00 6,232.00 5,624.00 2,888.00 61,560.00 5211 Mileage -Business 551.58 306.82 673.96 411.80 410.64 608.42 221.50 373.75 155.83 10.35 10.35 3,735.00 5211 Mileage -Commuting 106.72 153.70 56.84 140.36 122.96 29.00 289.80 150.65 59.80 1,109.83 5213 Seminars and Conferences 1,955.00 20.00 815.14 125.00 2,915.14 5212 Travel 666.57 5,957.29 310.66 1,715.48 3,421.95 12,071.95 5222 Community Events Total $ 5,193.76 $ 6,051.09 $ 11.922.99 $ 6.447.89 $ 8,600.78 $ 6,756.90 $ 6,US.03 $ 10,442.43 $ 6,923.63 $ 6,232.00 $ 5,634.35 $ 3,023.35 $ 83,474.20 DIRECTOR'S NAME CROUCH GARY _R�o_w_La�b�e~ls�---�D�a=te� Descriptions Director's Fee 7/12/2019 MEETING WITH DIR SMITH & GM WATTON TO DISCUSS CWA MATTERS 8/15/2019 MEETING WITH DIR SMITH & GM WATTON TO DISCUSS CWA MATTERS 8/23/2019 E&O COMMITTEE MEETING . Director's Fee Total Business meetings Business meetings Mileage -Business Mileage -Business Mileage Commutinq Mileage -Commuting 9/3/2019 QUARTERLY GM MEETING 9/4/2019 MONTHLY BOARD MEETING 9/5/2019 MEETING WITH BOARD PRESIDENT 7/3/2019 MONTHLY BOARD MEETING 10/2/2019 MONTHLY BOARD MEETING 10/16/2019 MEETING WITH DIR SMITH & GM WATTON TO DISCUSS CWA MATTERS 10/23/2019 ENGINEERING & OPERATIONS COMMITTEE MTG 11/6/2019 MONTHLY BOARD MEETING 11/7/2019 GM ADHOC MEETING -RECRUITMENT 11/21/2019 QUARTERLY CSDA MEETING 11/18/2019 CWA MATTERS MEETING 11/22/2019 GM ADHOC MEETING -RECRUITMENT 12/16/2019 HARASSMENT PREVENTION MANDATORY TRAINING 12/18/2019 GM ADHOC MEETING -RECRUITMENT 1/6/2020 GM ADHOC MEETING -RECRUITMENT 1/8/2020 CLOSED SESSION -LEGAL AND GM INPUT 1/16/2020 SPECIAL BOARD MTG 1/27/2020 OWD SPECIAL BOARD MEETING -DISCUSS GM RECRUITMENT; CWA MEETING MATTERS 1/29/2020 OWD SPECIAL BOARD MEETING -GM RECRUITMENT -CANDIDATE INTERVIEWS 1/31/2020 BOARD AGENDA REVIEW MEETING 2/5/2020 OWD REGULAR MONTHLY BOARD MEETING 2/13/2020 AGENDA BRIEFING WITH GM WATTON & MARTINEZ FOR FEB COMMITTEE MEETINGS 2/19/2020 EO & WR COMMITTEE BOARD AGENDA REVIEW 3/11/2020 OWD REGULAR MONTHLY BOARD MEETING 3/16/2020 EMERGENCY BOARD MTG -COVID19 IMPACTS ON DISTRICT OPERATIONS 3/20/2020 SPECIAL BOARD MTG -UPDATE ON COVID19 IMPACTS ON DISTRICT'S OPERATIONS 3/23/2020 SPECIAL BOARD MTG -UPDATE ON COVID19 IMPACTS ON DISTRICT'S OPERATIONS 3/25/2020 SPECIAL BOARD MTG -UPDATE ON COVID19 IMPACTS ON DISTRICT'S OPERATIONS 4/1/2020 OWD REGULAR MONTHLY BOARD MEETING 4/8/2020 SPECIAL BOARD MTG -UPDATE ON COVID19 IMPACTS ON DISTRICT'S OPERATIONS 4/15/2020 SPECIAL BOARD MTG -UPDATE ON COVID19 IMPACTS ON DISTRICT'S OPERATIONS 4/22/2020 SPECIAL BOARD MTG -UPDATE ON COVID19 IMPACTS ON DISTRICT'S OPERATIONS 4/29/2020 SPECIAL BOARD MTG -BUDGET WORKSHOP 5/6/2020 OWD REGULAR MONTHLY BOARD MEETING 5/14/2020 COMMITTEE AGENDA BRIEFING WITH GM MARTINEZ FOR MAY COMMITTEE MTGS 5/20/2020 SPECIAL BOARD MTG -UPDATE ON COVID19 IMPACTS ON DISTRICT'S OPERATIONS 2/12/2020 PRESENTED WATER ISSUES AT MEXICAN AMERICAN BUS PROFESSIONAL ASS'N MTG 3/18/2020 SPECIAL BOARD MTG -UPDATE ON COVID19 IMPACTS ON DISTRICT'S OPERATIONS 4/7/2020 SDRMA RISK ASSESSMENT ANALYSIS TRAINING 4/9/2020 SDRMA EMERGENCY ACTION PLANS & DISASTER PREPAREDNESS TRAINING 5/1/2020 MEETING WITH GM & COUNSEL RE: CITY OF SD RECYCLED CONTR; BOARD AGENDA BRIEFING 5/5/2020 MEETING WITH GM MARTINEZ AND EMPLOYEE ASS'N REPRESENTATIVES 5/27/2020 BOARD AGENDA BRIEFING WITH GM MARTINEZ AND GEN COUNSELS FOR JUNE BOARD MTG 3/17/2020 EO & WR COMMITTEE BOARD AGENDA REVIEW 4/20/2020 CWA MATTERS MEETING 3/9/2020 BOARD AGENDA REVIEW MEETING 3/27/2020 BOARD AGENDA REVIEW MEETING 4/10/2020 SDRMA INTRODUCTION TO OSHA TRAINING 4/17/2020 COMMITTEE AGENDA BRIEFING WITH GM MARTINEZ FOR APRIL COMMITTEE MTG 5/7/2020 MEETING WITH GM AND COUNSEL RE: HR MATTER 5/19/2020 EO & WR COMMITTEE BOARD AGENDA REVIEW 5/26/2020 CWA MATTERS MEETING 5/22/2020 CORONAVIRUS 101 TRAINING 6/3/2020 OWD REGULAR MONTHLY BOARD MEETING 6/23/2020 CWA MATTERS MEETING 6/8/2020 MEETING WITH GM AND COUNSEL RE: DISTRICT MATTERS 6/9/2020 MEETING WITH GM AND COUNSEL RE: DISTRICT MATTERS 6/12/2020 BOARD AGENDA BRIEFING W/ GM MARTINEZ & GEN COUNSELS FOR JULY BOARD MTG 11/22/2019 CSDA SAN DIEGO CHAPTER REGISTRATION 8/15/2019 MEETING -AUGUST 15, 2019 9/3/2019 MEETING -SEPTEMBER 3, 2019 1/31/2020 MEETINGS -JANUARY 31 2/29/2020 MEETINGS -FEBRUARY 12 & 13 3/31/2020 MEETING -MARCH 9 5/31/2020 MEETING -MAY 27 6/12/2020 MEETING -JUNE 12. 2020 1/16/2020 MEETINGS -JANUARY 6, 8 & 16 1/31/2020 MEETINGS -JANUARY 27 & 29 2/29/2020 MEETINGS -FEBRUARY 5 & 19 3/31/2020 MEETING -MARCH 11 ATTACHMENT D Sum of Amount 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 9 272.00 30.00 30.00 17.40 11.60 5.18 24.15 21.85 10.35 10.35 100.88 13.80 6.90 6.90 3.45 31.05 o_ta,,..._ ______________________________________________ -,---,--:-:--:--:-Grand Total $ 9,433.93 DIRECTOR'S NAME GASTELUM, HECTOR Row Labels Date Business meetings Business meetings Director's Fee Descri tions 8/15/2019 CSDA REGISTRATION 7/30/2019 ACWA REGION WORKSHOP -HUMAN RIGHTS TO WATER REGISTRATION 7/16/2019 COUNCIL OF WATER UTILITIES RSVP 8/22/2019 ACWA REGISTRATION 11/19/2019 COUNCIL OF WATER UTILITIES REGISTRATION 11/26/2019 UABC LUNCH, TIJUANA 10/3/2019 COUNCIL OF WATER UTILITIES REGISTRATION 11/22/2019 REALTOR ASSOCIATION REGISTRATION WATEREUSE ASSOCIATION REGISTRATION 11/14/2019 COUNCIL OF WATER UTILITIES REGISTRATION REGISTRATION FOR CSDA -SD CHAPTER 11/8/2019 JAGUAR AWARD LUNCHEON -SOUTHWESTERN COLLEGE 1/16/2020 COUNCIL OF WATER UTILITIES MEETING 2/19/2020 COUNCIL OF WATER UTILITIES MEETING CSDA SAN DIEGO CHAPTER REGISTRATION 2/24/2020 MABPA LUNCH 8/15/2019 HYDROSTATION LAUNCH 9/4/2019 MONTHLY BOARD MEETING 9/5/2019 MTG WITH JENNIFER PILLSBURY 7/3/2019 MONTHLY BOARD MEETING 7/10/2019 WATEREUSE WEBINAR -REMOVING BARRIERS TO POTABLE REUSE 7/15/2019 LEGISLATIVE ROUNDTABLE WITH SENATOR BRIAN JONES 7/17/2019 AD HOC GM EVALUATION COMMITTEE MEETING 7/18/2019 WATER CONSERVATION GARDEN BOARD MEETING 7/19/2019 SD COUNTY WATER RESILIENCE PORTFOLIO 7/23/2019 FAC&C COMMITTEE MEETING 7/24/2019 HYDROSTATION INTRODUCTION 7/25/2019 AALRR BREAKFAST-LABOR PEACE AGREEMENTS 7/30/2019 ACWA REGION WORKSHOP -HUMAN RIGHTS TO WATER 8/7/2019 MONTHLY BOARD MEETING 8/19/2019 CPR&! COMMITTEE 8/20/2019 COUNCIL OF WATER UTILITIES 9/13/2019 SOUTH COUNTY EDC, 29TH ANNUAL ECONOMIC SUMMIT 9/17/2019 COUNCIL OF WATER UTILITIES 9/25/2019 CHULA VISTA CHAMBER OF COMMERCE POLICY MTG 8/28/2019 CHULA VISTA CHAMBER OF COMMERCE 8/2/2019 WEBINAR WATER REUSE 8/6/2019 ADHOC GM EVALUATION COMMITTEE 9/20/2019 ACWA REGION 8 LEGISLATIVE FORUM -BROOKSIDE GOLF CLUB, PASADENA CA 10/2/2019 MONTHLY BOARD MEETING 10/8/2019 SPECIAL BOARD MTG 10/15/2019 COUNCIL OF WATER UTILITIES 10/16/2019 AB1588 NEWS CONFERENCE 10/18/2019 MWD/CWA STATE WATER PROJECT, BAY DELTA & OROVILLE 10/30/2019 CHULA VISTA CHAMBER OF COMMERCE POLICY MTG OTAY MESA CHAMBER OF COMMERCE DINNER & AWARDS 10/31/2019 WEBINAR WATEREUSE STATUS OF CASADVANCED WATER TREATMENT 10/17/2019 SCEDC & CVCC ELECTED OFFICIALS RECEPTION 11/2/2019 PACIFIC SOUTHWEST ASSOCIATION OF REALTORS 2020 INSTALLATION DINNER 11/5/2019 HARASSMENT PREVENTION MANDATORY TRAINING 11/6/2019 MONTHLY BOARD MEETING 11/19/2019 COUNCIL OF WATER UTILITIES MEETING 11/26/2019 BINATIONAL BORDER CONFERENCE -THE WATER WE SHARE 11/20/2019 WEBINAR: CLOSING THE LOOP WITH NEWATER 8/1/2019 SUEZ ADVANCED SOLUTIONS 8/8/2019 QUARTERLY GM MEETING 9/8/2019 34TH ANNUAL WATER REUSE SYMPOSIUM 9/9/2019 34TH ANNUAL WATER REUSE SYMPOSIUM 9/10/2019 34TH ANNUAL WATER REUSE SYMPOSIUM 9/11/2019 34TH ANNUAL WATER REUSE SYMPOSIUM 10/19/2019 MWD/CWA STATE WATER PROJECT, BAY DELTA & OROVILLE 11/8/2019 SOUTHWEST COLLEGE FOUNDATION 2019 JAGUAR AWARDS LUNCHEON 1/8/2020 OWD REGULAR MONTHLY BOARD MEETING 1/16/2020 OWD SPECIAL BOARD MEETING 1/27/2020 OWD SPECIAL BOARD MTG -GM CANDIDATE REVIEW 1/29/2020 OWD SPECIAL BOARD MTG -GM CANDIDATE INTERVIEWS 11/25/2019 BINATIONAL BORDER CONFERENCE -THE WATER WE SHARE 11/27/2019 QUARTERLY GM MEETING 12/3/2019 ACWA 2019 FALL CONFERENCE 12/4/2019 ACWA 2019 FALL CONFERENCE 12/5/2019 ACWA 2019 FALL CONFERENCE 12/6/2019 ACWA 2019 FALL CONFERENCE 12/9/2019 WEBINAR -AB1234 ETHICS TRAINING 12/10/2019 COLORADO RIVER WATER USERS ASS'N 2019 ANNUAL CONFERENCE 12/11/2019 COLORADO RIVER WATER USERS ASS'N 2019 ANNUAL CONFERENCE ATTACHMENT E Sum of Amount 30.00 75.00 45.00 50.00 45.00 18.00 45.00 80.00 49.00 45.00 30.00 100.00 40.00 40.00 30.00 50.00 772.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 DIRECTOR'S NAME GASTELUM, HECTOR Row Labels Date Director's Fee Director's Fee Total Mileage -Business Mileage -Business Mileage Mileage -Commuting Travel Travel Total Conferences and Seminars Conferences and Seminars Total Grand Total Descri ions 12/12/2019 COLORADO RIVER WATER USERS ASS'N 2019 ANNUAL CONFERENCE 12/13/2019 COLORADO RIVER WATER USERS ASS'N 2019 ANNUAL CONFERENCE 1/21/2020 COUNCIL OF WATER UTILITIES -BUTCHER SHOP; EO & WR COMMITTEE MTG 1/15/2020 CSDA WEBINAR: UNDERSTANDING NEW LAWS 1/28/2020 WATER CONSERVATION GARDEN JPA BOARD MTG 2/3/2020 OWD SPECIAL BOARD MEETING -GM CANDIDATE INTERVIEWS 2/5/2020 OWD REGULAR MONTHLY BOARD MEETING 2/13/2020 OWD QUARTERLY GM MEETING 2/18/2020 COUNCIL OF WATER UTILITIES MTG; CPRL&L COMMITTEE MTG 2/19/2020 STATE OF THE COUNTY ADDRESS -MIDWAY MUSEUM 2/20/2020 SAN DIEGO CSDA QUARTERLY MEETING 2/24/2020 ACWA DC CONFERENCE -TRAVEL DAY 2/25/2020 ACWA DC CONFERENCE 2/26/2020 ACWA DC CONFERENCE 2/27/2020 ACWA DC CONFERENCE 3/11/2020 OWD REGULAR MONTHLY BOARD MEETING 3/12/2020 SPECIAL IMPORTED WATER COMMITTEE MTG AT SDCWA 3/16/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS 3/20/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS 3/23/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS 3/25/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS 3/29/2020 CSDA WEBINAR: ANNUAL EMPLOYMENT LAW UPDATE 3/30/2020 ACWA WEBINAR: COMMUNICATING DURING CRISIS 3/31/2020 CSDA WEBINAR: HOW TO COLLECT UNPAID BILLS 4/1/2020 OWD REGULAR MONTHLY BOARD MEETING 4/8/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS 4/15/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS 4/22/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS 4/28/2020 WATER CONSERVATION GARDEN JPA BOARD MTG 4/29/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS 5/6/2020 OWD REGULAR MONTHLY BOARD MEETING 5/8/2020 MEETING WITH G. CROUCHER AND GM RE: MASKS 5/14/2020 OWD QUARTERLY GM MEETING 5/20/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS 5/21/2020 CSDA QUARTERLY MEETING 6/3/2020 OWD REGULAR MONTHLY BOARD MEETING 6/12/2020 MEETING WITH DIR CROUCHER & D SHINOFF 7/31/2019 MEETINGS -JULY 15, 18, 19, 24, 25, 30 & 31, 2019 8/31/2019 MEETINGS -AUGUST 1, 15, 20 & 28, 2019 9/30/2019 MEETINGS -SEPTEMBER 5, 8, 9, 10, 11, 13, 17, 20 & 25, 2019 10/31/2019 MEETINGS -OCTOBER 5, 15, 16, 17, 18, 19 & 30, 2019 11/30/2019 MEETINGS -NOVEMBER 2, 8, 19, 25, & 26 1/31/2020 MEETINGS -JANUARY 21, 24, 25 & 28 12/31/2019 MEETINGS -DECEMBER 3, 4, 5, 6, 10 & 13 2/29/2020 MEETINGS -FEBRUARY 12, 18, 19, 20, 24, 27 & 4 3/31/2020 MEETING -MARCH 12 1/24/2020 SOAR PARKING 9/4/2019 MEETING -SEPTEMBER 4, 2019 7/31/2019 MEETINGS -JULY 3, 17 , 23, 2019 8/31/2019 MEETINGS -AUGUST 6, 7, 8 & 19, 2019 10/31/2019 MEETINGS -NOVEMBER 2 & 8, 2019 11/30/2019 MEETINGS -NOVEMBER 5, 6 & 27 1/31/2020 MEETINGS -JANUARY 8, 16, 21, 27 & 29 2/29/2020 MEETINGS -FEBRUARY 3, 5, 13, & 18 3/31/2020 MEETING -MARCH 11 9/19/2019 ACWA REGION 8 LEGISLATIVE FORUM LODGING -COURTYARD BY MARRIOTT 8/22/2019 ACWA WORKSHOP LODGING -HAMPTON INN 11/22/2019 CRWUA CONFERENCE -BALLYS HOTEL ADVANCE DEP 12/3/2019 ACWA PARKING 12/10/2019 CRWUA MEALS CRWUA PARKING 2/24/2020 ACWA CONFERENCE MEALS AND TRANSPORTATION 2/25/2020 ACWA CONFERENCE LODGING ACWA CONFERENCE AIRFARE 11/22/2019 ACWA REGISTRATION COLORADO RIVER WATER U REGISTRATION 2/24/2020 REGISTRATION-EASTLAKE EDUCATONAL AND EB H2OVERVIEW 6/30/2020 BIA CONFERENCE FEE ATTACHMENT E Sum of Amount 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 14 592.00 356.12 131.08 314.94 118.32 136.88 75.90 472.12 146.05 26.45 17.50 1,795.36 10.44 31.32 41.76 20.88 31.32 51.75 41.40 10.35 239.22 213.68 204.12 310.66 120.00 163.00 45.01 1,013.62 1,203.81 1 039.80 4 313.70 725.00 505.00 216.14 125.00 1,571.14 $ 23,283.42 DIRECTO 'S NAME ROBAK M El$_ Row Labels Date Descri tions Business meetings 8/15/2019 CSDA REGISTRATION Business meetings 7/16/2019 COUNCIL OF WATER UTILITIES REGISTRATION 9/17/2019 COUNCIL OF WATER UTILITIES REGISTRATION 7/22/2019 CHULA VISTA CHAMBER OF COMMERCE REGISTRATION 10/15/2019 COUNCIL OF WATER UTILITIES REGISTRATION 11/19/2019 COUNCIL OF WATER UTILITIES REGISTRATION 11/22/2019 REALTOR ASSOCIATION MLS REGISTRATION 11/14/2019 CSDA REGISTRATION 1/16/2020 COUNCIL OF WATER UTILITIES MEETING 11/25/2019 SDSU CONFERENCE LUNCH 2/19/2020 COUNCIL OF WATER UTILmES MEETING CSDA SAN DIEGO CHAPTER REGISTRATION 2/24/2020 SAN DIEGO EAST COUNTY Director's Fee 7/12/2019 CHULA VISTA CHAMBER OF COMMERCE BREAKFAST 8/15/2019 CSDA QUARTERLY DINNER 9/3/2019 EAST COUNTY CHAMBER GOVT AFFAIRS & LAND USE COMMITTEE MTG 9/4/2019 MONTHLY BOARD MEETING 7/3/2019 MONTHLY BOARD MEETING 7/15/2019 LEGISLATIVE ROUNDTABLE WITH SENATOR BRIAN JONES 7/23/2019 FAC&C COMMITTEE MEETING 7/24/2019 HYDROSTATION INTRODUCTION 7/16/2019 COUNCIL OF WATER UTILITIES WITH PAT MULROY 8/7/2019 MONTHLY BOARD MEETING 8/12/2019 MEETING WITH SWEETWATER AUTHORITY DIRECTORS RE: SYNERGIES 8/19/2019 PRL&L COMMITTEE MEETING 8/20/2019 FAC&C COMMITTEE MEETING 9/13/2019 SCEDC ECONOMIC SUMMIT 9/17/2019 COUNCIL OF WATER UTILITIES RE: NEW COLORADO RIVER PIPELINE 9/18/2019 FAC&C COMMITTEE MEETING 9/22/2019 2019 SD CHAMBER MISSION TO WASHINGTON DC 9/23/2019 2019 SD CHAMBER MISSION TO WASHINGTON DC 9/24/2019 2019 SD CHAMBER MISSION TO WASHINGTON DC 9/25/2019 2019 SD CHAMBER MISSION TO WASHINGTON DC 10/1/2019 EAST COUNTY CHAMBER GOVT AFFAIRS & LAND USE COMMITTEE MTG 10/2/2019 MONTHLY BOARD MEETING 10/8/2019 SPECIAL BOARD MTG 10/15/2019 COUNCIL OF WATER UTILITIES 10/16/2019 AB1588 NEWS CONFERENCE 10/23/2019 DISCUSS FINANCE & ADMIN COMMITTEE AGENDA ITEMS 10/11/2019 LAFCO SPECIAL DISTRICTS ADVISORY BOARD MTG 10/17/2019 SCEDC ELECTED OFFICIALS RECEPTION 11/2/2019 PSAR INSTALLATION DINNER 11/5/2019 EAST COUNTY CHAMBER GOVT AFFAIRS & INFRASTRUCTURE LAND USE COMMITTEE MTG HARASSMENT PREVENTION MANDATORY TRAINING 11/6/2019 MONTHLY BOARD MEETING 11/7/2019 SAN DIEGO CHAMBER ENERGY & WATER COMMITTEE ENERGY & WATER ISSUE DISC. 11/13/2019 EAST COUNTY CHAMBER STRATEGIC SUMMIT 11/19/2019 COUNCIL OF WATER UTILITIES 11/21/2019 CSDA QUARTERLY DINNER 11/26/2019 REBORDER AT SDSU 1/8/2020 OWD REGULAR MONTHLY BOARD MEETING 1/16/2020 OWD SPECIAL BOARD MTG -GM CANDIDATE REVIEW 1/27/2020 OWD SPECIAL BOARD MTG -GM CANDIDATE REVIEW 1/29/2020 OWD SPECIAL BOARD MTG -GM CANDIDATE REVIEW 12/2/2019 QUARTERLY GM MEETING 12/3/2019 ACWA CONFERENCE BI-ANNUAL MEETING 12/4/2019 ACWA CONFERENCE BI-ANNUAL MEETING 12/5/2019 ACWA CONFERENCE BI-ANNUAL MEETING 12/6/2019 ACWA CONFERENCE BI-ANNUAL MEETING 12/9/2019 FINANCE AND ADMINISTRATION COMMITTEE MEETING 12/19/2019 SDCWA MEETING; EAST REGIONAL CHAMBER HOLIDAY RECEPTION 12/20/2019 LAFCO SPECIAL DISTRICTS ADVISORY BOARD MTG 1/7/2020 EC CHAMBER GOV'T AFFAIRS & INFRASTRUCTURE LAND USE COMMITTEE MTG 1/21/2020 COUNCIL OF WATER UTILITIES MEETING 1/22/2020 FINANCE AND ADMINISTRATION COMMITTEE MEETING -GAVIN NEWSON 2/3/2020 OWD SPECIAL BOARD MTG -GM CANDIDATE INTERVIEWS; ACTIVE SHOOTER TRNG 2/5/2020 OWD REGULAR MONTHLY BOARD MEETING 2/18/2020 FINANCE AND ADMIN COMMITTEE MTG; COUNCIL OF WATER UTILITIES MTG ATTACHMENT F Sum of Amount 30.00 45.00 45.00 20.00 45.00 45.00 80.00 30.00 40.00 10.36 40.00 30.00 50.00 510.36 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 DIRECTOR'S NAME Row labels Director's Fee Director's Fee Total Mileage -Business Mileage -Business Mileage Mileage -Commuting Travel ROBAK,MARK Date Descri tions 2/20/2020 CSDA QUARTERLY DINNER 2/25/2020 SD REGIONAL CHAMBER OF COMMERCE 2020 LEADERSHIP DELEGATION TO SACRAMENTO MTG 2/26/2020 SD REGIONAL CHAMBER OF COMMERCE 2020 LEADERSHIP DELEGATION TO SACRAMENTO MTG 3/11/2020 OWD REGULAR MONTHLY BOARD MEETING 3/12/2020 SDCWA REGIONAL CONVEYANCE PRESENTATION 3/16/2020 FINANCE AND ADMIN COMMITTEE MTG; SPECIAL BOARD MTG RE; COVID-19 RESPONSE 3/20/2020 LAFCO SPECIAL DISTRICTS ADVISORY BOARD MTG; OWD SPECIAL BOARD MTG RE: COVID-19 RESPONSE 3/23/2020 OWD SPECIAL BOARD MTG RE: COVID-19 RESPONSE 3/25/2020 OWD SPECIAL BOARD MTG RE: COVID-19 RESPONSE 4/1/2020 OWD REGULAR MONTHLY BOARD MEETING 4/8/2020 OWD SPECIAL BOARD MEETING RE: VOCID-19 RESPONSE 4/15/2020 OWD SPECIAL BOARD MEETING RE: VOCID-19 RESPONSE 4/22/2020 OWD SPECIAL BOARD MEETING RE: VOCID-19 RESPONSE 4/29/2020 OWD BOARD MEETING -BUDGT WORKSHOP 5/6/2020 OWD REGULAR MONTHLY BOARD MEETING 5/20/2020 MWD IRP PLAN MTG 5/21/2020 CSDA QUARTELY MEETING 2/4/2020 SO COUNTY EDC MONHTLY MEETING 2/10/2020 OWD QUARTERLY GM MEETING; EAST COUNTY CHAMBER OF COMMERCE MTG 2/12/2020 SWEETWATER AD HOC COMMITTEE MEETING 3/3/2020 EAST COUNTY CHAMBER OF COMMERCE GOVT AFFAIRS & INFRUSTRUCTURE COMMITTEE 3/18/2020 OWD SPECIAL BOARD MTG -DISCUSS COVID-19 RESPONSE 4/21/2020 FINANCE AND ADMIN COMMITTEE MTG 4/9/2020 SCEDC MEETING WITH NEW CEO 5/5/2020 EAST COUNTY CHAMBER OF COMMERCE GOVT AFFAIRS & INFRUSTRUCTURE COMMITTEE 5/18/2020 FINANCE AND ADMIN COMMITTEE MTG 5/28/2020 SDCWA MONTHLY BOARD MEETING 5/7/2020 SD CHAMBER SUSTAINABILITY & INDUSTRY COMMITTEE MONTHLY MEETING 5/19/2020 OWD SPECIAL BOARD MEETING RE: COVID-19 RESPONSE 3/2/2020 AD HOC SALT CREET GOLF COURSE COMMITTEE MTG RE: PROPERTY DISPOSillON 3/5/2020 SD CHAMBER SUSTAINABILITY & INDUSTRY COMMITTEE TOUR OF PURE WATER SD FACILITY 4/2/2020 SD CHAMBER SUSTAINABILITY & INDUSTRY COMMITTEE MONTHLY MEETING 4/23/2020 SDCWA MONTHLY BOARD MEETING 6/3/2020 OWD REGULAR MONTHLY BOARD MEETING 6/25/2020 SDCWA MONTHLY BOARD MEETING 6/2/2020 EAST COUNTY CHAMBER OF COMMERCE MEETING 6/15/2020 FINANCE AND ADMIN COMMITTEE MTG 6/1.9/2020 LAFCO SPEOAL DISTRICTS ADVISORY BOARD 7/31/2019 MEETINGS -JULY 3, 11, 12, 15, 16, 23 & 24, 2019 8/31/2019 MEETINGS -AUGUST 7, 12, 15, 19 & 20, 2019 9/30/2019 MEETINGS -SEPTEMBER 3, 4, 13, 17, 18, 22, & 25, 2019 10/31/2019 MEETINGS -OCTOBER 1, 2, 3, 8, 11, 15, 16, 17, & 23, 2019 11/30/2019 MEETINGS -NOVEMBER 2, 5, 6, 7, 13, 19, 21 & 25, 2019 1/31/2020 MEETINGS -JANUARY 7, 8, 16, 21, 22, 27 & 29 12/31/2019 MEETNGS -DECEMBER 1, 3, 4, 5, 6, 9, 19 & 20 2/29/2020 MEETINGS -FEBRUARY 3, 4, 5, 6, 10, 12, 18, 20, 25 & 26 3/31/202.0 MEETINGS -MARCH 2. 3, 5, U & 12 9/4/2019 MEETING -SEPTEMBER 4, 2019 7/3/2019 MEETING -JULY 3, 2019 8/7/2019 MEETING -AUGUST 7, 2019 10/31/2019 MEETINGS -OCTOBER 2, 2019 11/30/2019 MEETINGS -NOVEMBER 6, 2019 1/31/2020 MEETINGS -JANUARY 8 2/29/2020 MEETING -FEBRUARY 5 3/31/2020 MEETNG -MARCH 11 9/22/2019 2019 SD CHAMBER MISSION TO WASHINGTON DC FLIGHT -AMERICAN AIRLINES 2019 SD CHAMBER MISSION TO WASHINGTON DC REGISTRATION 2019 SD CHAMBER MISSION TO WASHINGTON DC FLIGHT -UNITED AIRLINES 2019 SD CHAMBER MISSION TO WASHINGTON DC HOTEL Sum of Amount 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 14 136.00 78.30 33.64 80.04 108.46 103.24 53.48 103.82 94.30 59.80 715.08 2.32 2.32 2.32 2.32 2.32 2.30 2.30 2.30 18.50 408.50 2,300.00 608.00 1,600.36 DIRECTOR'S NAME Row Labels Trawel Travel Total Conferences and Seminars Conferences and Seminars Tota_l_ Grand Total ROBAK MARK Date Descri tions 43730 2019 SD CHAMBER MISSION TO WASHINGTON DC LODGING 9/30/2019 2019 SD CHAMBER MISSION TO WASHINGTON DC EXPENSES 12/3/2019 ACWA CONFERENCE PARKING 2/24/2020 SD REGIONAL CHAMBER OF COMMERCE SACRAMENTO AIRFARE 2/26/2020 SD CHAMBER SACRAMENTO MEALS AND TRANSPORTATION 11/22/2019 CHULA CHAMBER OF COMMERCE REGISTRATION Sum of Amount 335.29 271.16 79.00 77.98 86.74 5 767.03 725.00 2/24/2020 REGISTRATION -EB H2OVERVIEW 149.00 SD REGIONAL CHAMBER OF COMMERCE SACRAMENTO REGISTRATION 450.00 1,324.00 $ 22,470.97 DIRECTOR'S NAME SMITH, TIM Row labels Date Descriptions Business meetings 7/24/2019 EAST COUNTY CAUCUS MEETING Business meetings 9/17/2019 COUNCIL OF WATER UTILITIES REGISTRATION 9/25/2019 EAST COUNTY CAUCUS MEmNG 10/15/2019 COUNCIL OF WATER UTILITIES REGISTRATION 10/23/2019 EAST COUNTY CAUCUS MEETING 11/20/2019 EAST COUNTY CAUCUS MEmNG 1/22/2020 EAST COUNTY CAUCUS MEmNG 2/26/2020 EAST COUNTY CAUCUS MEETING 2/12/2020 SWEETWATER MECEJIIIIG Director's Fee 7/12/2019 MEETING WITH DIR CROUCHER & GM WATTON TO DISCUSS CWA MATTERS 8/15/2019 MEETING WITH DIR CROUCHER & GM WATTON TO DISCUSS CWA MATTERS 8/23/2019 EO&WR COMMITTEE MEmNG 9/4/2019 MONTHLY BOARD MEETING 7/3/2019 MONTHLY BOARD MEETING 7/15/2019 ROSARITO DESALINATION PLANT COMMITTEE MEmNG 7/24/2019 EAST COUNTY CAUCUS MEETING 8/7/2019 MONTHLY BOARD MEETING 8/12/2019 MEETING WITH SWEETWATER AUTHORITY DIRECTORS RE: SYNERGIES 9/17/2019 COUNCIL OF WATER UTILITIES MEETING 9/25/2019 EAST COUNTY CAUCUS MEETING 8/21/2019 EAST COUNTY CAUCUS MEmNG 8/28/2019 ROSARITO DESALINATION PLANT COMMITTEE MEETING 10/2/2019 MONTHLY BOARD MEETING 10/15/2019 COUNCIL OF WATER UTILITIES MONTHLY MTG 10/16/2019 VETERAN'S AB 1488 10/23/2019 EAST COUNTY CAUCUS MEETING 10/30/2019 OTAY MESA CHAMBER OF COMMERCE 32ND DINNER EVENT 11/19/2019 MONTHLY BOARD MEmNG 10/3/2019 QUARTERLY GM MEETING 11/16/2019 MONTHLY BOARD MEmNG 11/18/2019 MEmNG WITH DIR CROUCHER & GM WATTON TO DISCUSS CWA MATTERS 11/20/2019 EAST COUNTY CAUCUS MEETING 1/6/2020 QUARTERLY MEmNG -GM RECRUITMENT 1/8/2020 OWD REGULAR MONHTLY BOARD MEmNG 1/16/2020 OWD SPECIAL BOARD MTG -GM CANDIDATE REVIEW 1/27/2020 OWD SPECIAL BOARD MTG -DISCUSSED GM CANDIDATE REVIEW AND CWA MATTERS 1/29/2020 OWD SPECIAL BOARD MTG -GM CANDIDATE REVIEW 12/2/2019 RETURNED OLD AND CONFIGURED NEW IPAD 1/21/2020 EO & WR COMMITTEE BOARD AGENDA REVIEW 1/22/2020 EAST COUNTY CAUCUS MEETING; DESALINATION COMMITTEE MTG 1/30/2020 ORGANIZATIONAL PHOTO 2/3/2020 OWD SPECIAL BOARD MEETING (GM SELECTION AND SHOOTER TRAINING) 2/5/2020 OWD REGULAR MONTHLY BOARD MEmNG 2/19/2020 EO & WR COMMITTEE BOARD AGENDA REVIEW 2/26/2020 EAST COUNTY CAUCUS MEmNG; QUARTERLY GM MEETING 3/11/2020 OWD REGULAR MONTHLY BOARD MEmNG 3/12/2020 CWA MATTERS MEETING 3/16/2020 EMERGENCY TELECONFERENCE MEmNG OF THE BOARD OF DIRECTORS -COVID UPDATE 3/20/2020 EMERGENCY TELECONFERENCE MEmNG OF THE BOARD OF DIRECTORS -COVID UPDATE 3/23/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS -COVID UPDATE 3/25/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS -COVID UPDATE 4/1/2020 OWD REGULAR MONTHLY BOARD MEETING 4/8/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS 4/15/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS 4/22/2020 EAST COUNTY CAUCUS MEETING;OWD EMERGENCY TELECONF MEmNG 4/29/2020 BUDGET & EMERGENCY TELECONFERENCE BOARD MEmNG 5/6/2020 OWD REGULAR MONTHLY BOARD MEETING 5/20/2020 OWD SPECIAL BOARD MEETING RE: VOCID-19 UPDATE 2/12/2020 MEETING WITH SWEETWATER AUTHORITY RE: ADHOC COMMITTEE COORDINATION 3/18/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS -COVID UPDATE 5/27/2020 EAST COUNTY CAUCUS MEETING 3/17/2020 EO & WR COMMITTEE BOARD AGENDA REVIEW 4/20/2020 CWA MATTERS MEETING 5/19/2020 EO & WR COMMITTEE BOARD AGENDA REVIEW 5/26/2020 CWA MATTERS MEETING 5/22/2020 OWD QUARTERLY GM MEETING 6/3/2020 OWD REGULAR MONTHLY BOARD MEETING 6/23/2020 CWA MATTERS MEETING 6/24/2020 EAST COUNTY CAUCUS MEETING 6/25/2020 CORONAVIRUS 101 TRAINING ATTACHMENT G s.um of Amount 19.46 45.00 9.73 45.00 9.73 9.73 9.73 9.73 11.21 169.32 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 DIRECTOR'S NAME SMITH,._J]_M Row Labels Date Descriptions Sum of Amount Director's Fee_'(o_t_al_ ___________ _ ____ 9,272.00 Mileage -Business 7/31/2019 MEETINGS -JULY 12 & 24, 2019 35.96 Mileage -Business Mileage Commutina Mileage -Commuting Grand Total 8/31/2019 MEETINGS -AUGUST 12, 15 & 21, 2019 51.04 9/30/2019 MEETINGS -SEPTEMBER 17 & 25, 2019 44.08 10/31/2019 MEETINGS -OCTOBER 15, 16, 23 & 30, 2019 91.64 11/30/2019 MEETINGS -NOVEMBER 18, 19 & 20, 2019 61.48 1/31/2020 MEETINGS -JANUARY 22 18.40 2/29/2020 MEETINGS -FEBRUARY 12 & 26 33.35 3L.llil020 MEETING -MARCH 12 _______ _ __ 17.25 9/4/2019 MEETING -SEPTEMBER 4, 2019 7/31/2019 MEETINGS -JULY 3 & 15, 2019 8/31/2019 MEETINGS -AUGUST 7, 23 & 28, 2019 10/31/2019 MEETINGS -OCTOBER 2, 3 & 23, 2019 11/6/2019 MEETING -NOVEMBER 6, 2019 1/31/2020 MEETINGS -JANUARY 6, 8, 16, 21, 22, 27, 29 & 30 12/2/2019 MEETING -DECEMBER 2 2/29/2020 MEETINGS -FEBRUARY 3, 5, 19 & 26 3/31/2020 MEETING -MARCH 11 353.20 13.92 27.84 41.76 41.76 13.92 110.40 13.92 55.20 13.80 332.52 $ 10,127.04 QJRECIOR'S N�E THOMPSON. MITCHELL Row La_b__els'-----D_i!.te Busiaess meetings B_u_5lness meetings Total Director's Fee Qescri1ttions 7/19/2019 SD COUNTY WATER RESILIENCE PORTFOLIO REGISTRATION 9/23/2019 EB H2OVERVIEW 9/19/2019 ACWA REGION 8 LEGISLATIVE FORUM REGISTRATION TRIP TO LA FOR LEGISLATIVE ROUNDTABLE -DINNER 9/20/2019 TRIP TO LA FOR LEGISLATIVE ROUNDTABLE -BREAKFAST 10/22/2019 CHULA VISTA CHAMBER OF COMMERCE FIRST FRIDAY BREAKFAST MTG 11/7/2019 LUNCH WITH C ANTOINE, SDCWA 11/19/2019 COUNCIL OF WATER UTILITIES REGISTRATION 11/22/2019 CSDA SAN DIEGO CHAPTER REGISTRATION REALTOR ASSOCIATION MLS REGISTRATION 11/8/2019 BB SWC FOUNDATION JAGUAR EVENT 11/1/2019 FIRST FRIDAY BREAKFAST 2/19/2020 CSDA SAN DIEGO CHAPTER REGISTRATION 2/7/2020 FIRST FRIDAY BREAKFAST 3/6/2020 FIRST FRIDAY BREAKFAST 8/15/2019 CHULA VISTA ELEMENTARY SCHOOL DISTRICT HYDROSTATION LAUNCH 9/3/2019 SCEDC BOARD MEETING 9/4/2019 MONTHLY BOARD MEETING 9/5/2019 WATER CONSERVATION GARDEN MEETING WITH EXEC DIR J PILLSBURY 7/3/2019 MONTHLY BOARD MEETING 7/15/2019 ROSARITO DESALINATION PLANT COMMITTEE MEETING 7/18/2019 WATER CONSERVATION GARDEN BOARD MEETING 7/19/2019 SD COUNTY WATER RESILIENCE PORTFOLIO 7/16/2019 AD HOC GM EVALUATION COMMITTEE MEETING 8/7/2019 MONTHLY BOARD MEETING 8/12/2019 QUARTERLY GM MEETING 8/20/2019 FAC&C COMMITTEE MEETING 9/13/2019 SCEDC 29TH ANNUAL ECONOMIC SUMMIT 9/18/2019 FAC&C COMMITTEE MEETING 8/28/2019 ROSARITO DESALINATION PLANT COMMITTEE MEETING 7/2/2019 SCEDC BOARD MEETING 8/2/2019 MET W/ GM WATTON & COUNSEL SHINOFF TO REVIEW AUGUST BOARD ITEMS 8/5/2019 MEETING WITH CHULA VISTA CITY MANAGER RE: SEWER BILLING 8/6/2019 AD HOC GM EVALUATION COMMITTEE MEETING 8/16/2019 COMMITTEE AGENDA BRIEFING WITH GM WATTON FOR AUGUST MEETINGS 8/29/2019 MET W/ GM WATTON & COUNSEL SHINOFF TO REVIEW SEPTEMBER BOARD ITEMS 9/19/2019 ACWA REGION 8 LEGISLATIVE FORUM 9/20/2019 ACWA REGION 8 LEGISLATIVE FORUM 9/27/2019 MET W/ GM WATTON & COUNSEL SHINOFF TO REVIEW OCTOBER BOARD ITEMS 10/1/2019 SCEDC BOARD MEETING 10/2/2019 MONTHLY BOARD MEETING 10/8/2019 OCT SPECIAL BOARD MEETING 10/14/2019 PRESIDENTS AND GMs MEETING 10/15/2019 COUNCIL OF WATER UTILITIES 10/16/2019 AB1588 NEWS CONFERENCE 10/18/2019 MET WITH GM WATTON TO REVIEW OCTOBER COMMITTEE MTG AGENDA ITEMS 10/22/2019 MEXICAN AMERICAN BUSINESS PROFESSIONALS ASSOCIATION 10/23/2019 REVIEW ITEMS FOR THE NOVEMBER FINANCE AND ADMIN COMMITTEE MTG 10/30/2019 WATER CONSERVATION GARDEN JPA BOARD MTG 11/2/2019 PACIFIC SOUTHWEST ASSOCIATION OF REALTORS 2020 INSTALLATION DINNER 11/5/2019 SCEDC BOARD MEETING; HARASSMENT PREVENTION MANDATORY TRAINING 11/6/2019 MONTHLY OWD BOARD MEETING; MEXICAN AMERICAN BUSINESS PROFESSIONALS ASS'N 11/7/2019 AD HOC GM RECRUITMENT MEETING 11/22/2019 AD HOC GM RECRUITMENT MEETING 11/8/2019 SOUTHWEST COLLEGE FOUNDATION 2019 JAGUAR AWARDS LUNCHEON 12/18/2019 AD HOC GM RECRUITMENT MEETING 1/6/2020 AD HOC GM MEETING 1/8/2020 OWD REGULAR MONTHLY BOARD MEETING 1/16/2020 OWD SPECIAL BOARD MEETING 1/27/2020 OWD SPECIAL BOARD MEETING 1/29/2020 WATER CONSERVATION JPA BOARD MEETING 11/25/2019 QUARTERLY GM MEETING 12/9/2019 FINANCE AND ADMINISTRATION COMMITTEE MEETING 12/19/2019 BOARD AGENDA REVIEW MEETING 11/1/2019 BOARD AGENDA REVIEW MEETING 12/10/2019 COLORADO RIVER WATER USERS ASS'N ANNUAL CONFERENCE 12/11/2019 COLORADO RIVER WATER USERS ASS'N ANNUAL CONFERENCE 12/12/2019 COLORADO RIVER WATER USERS ASS'N ANNUAL CONFERENCE 12/13/2019 COLORADO RIVER WATER USERS ASS'N ANNUAL CONFERENCE 1/7/2020 SCEDC BOARD MTG 1/21/2020 COUNCIL OF WATER UTILITIES MTG 1/22/2020 OWD DESALINATION AND FINANCE COMMITTEE MTG 1/30/2020 FRIENDS OF WATER CONSERVATION GARDEN BOARD MTG 2/3/2020 OWD REGULAR MONTHLY BOARD MEETING 2/5/2020 OWD REGULAR MONTHLY BOARD MEETING 2/19/2020 STATE OF THE COUNTY ADDRESS 2/20/2020 CSDA QUARTERLY MEETING 3/11/2020 OWD REGULAR MONTHLY BOARD MEETING 3/12/2020 SD COUNTY WATER AUTHORITY MTG ATTACHMENT H S_um of Amount 75.00 22.85 50.00 40.59 5.73 20.00 16.43 90.00 30.00 80.00 100.00 20.00 30.00 20.00 20.00 620.60 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 DIRECTOR'S NAME Row Labels Director's Fee Director's Fee Total Mileage -Business Mileage -Business Total Mileage -Commuting Mileage -Commuting Travel Travel Total Grand Total Tl::!_Ql\1f>_SON,_ MITCH ELL _D_ate Descrlp!,io� 3/16/2020 FINANCE AND ADMIN COMMITTEE MTG 3/20/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS -COVID UPDATE 3/23/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS 3/25/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS -COVID UPDATE 4/1/2020 OWD REGULAR MONTHLY BOARD MEETING 4/8/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS 4/15/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS -COVID UPDATE 4/16/2020 SO COUNTY EDC PUBLIC POLICY COMMITTEE MTG 4/22/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS -COVID UPDATE 4/28/2020 SD WATER CONSERVATION JPA BOARD MEETING 4/29/2020 BUDGET & EMERGENCY TELECONFERENCE BOARD MEETING 5/6/2020 OWD REGULAR MONTHLY BOARD MEETING 5/20/2020 OWD SPECIAL BOARD MEETING 5/21/2020 CSDA MEETING 2/4/2020 SO COUNTY EDC BOARD MTG 2/10/2020 QUARTERLY GM MEETING 2/12/2020 MABPA MONHTLY LUNCH MEETING 3/3/2020 SO COUNTY EDC BOARD MTG 3/18/2020 EMERGENCY TELECONFERENCE MEETING OF THE BOARD OF DIRECTORS -COVID UPDATE 4/7/2020 SO COUNTY EDC BOARD MTG 4/21/2020 FINANCE AND ADMIN COMMITTEE MTG 4/9/2020 MEETING WITH J. PILLSBURY OF ED OF SD CONSERVATION GARDEN 5/1/2020 MEETING WITH BOARD PRESIDENT, GM AND COUNSEL RE: CITY OF SD RECYCLED CONTRACT 5/5/2020 SCEDC BOARD MEETING 5/18/2020 FA & A COMMITTEE MEETING 5/28/2020 CWA BOARD MEETING 5/27/2020 CV CHAMBER UTILITY SUB-COMMITTEE MEETING 6/3/2020 OWD REGULAR MONTHLY BOARD MEETING 6/2/2020 SCEDC BOARD MEETING 6/15/2020 FINANCE AND ADMIN COMMITTEE MTG 7/31/2019 MEETINGS -JULY 1, 18 & 19, 2019 8/31/2019 MEETINGS -AUGUST 1, 2, 5, 6, 15, 16, 27 & 29, 2019 9/30/2019 MEETINGS -SEPTEMBER 3, 5, 13, 19, 20 & 27, 2019 10/31/2019 MEETINGS -OCTOBER 1, 15, 16, 18, 22 & 30, 2019 11/30/2019 MEETINGS -NOVEMBER 1, 2, 5, 6 & 8, 2019 1/31/2020 MEETINGS -JANUARY 7, 21, 29 & 30, 2020 12/31/2019 MEETINGS -DECEMBER 10, 13, 18 & 19, 2019 2/19/2020 PARKING -STATE OF THE COUNTY ADDRESS 3/31/2020 MEETINGS -MARCH 3, 6 & 12, 2020 2/28/2020 MEETINGS -FEBRUARY 4. 7. 12. 19. 20 & 28; 2020 7/31/2019 MEETINGS -JULY 3, 15 & 16, 2019 8/31/2019 MEETINGS -AUGUST 6, 7, 12, 20 & 28, 2019 9/30/2019 MEETINGS -SEPTEMBER 4 & 18, 2019 10/31/2019 MEETINGS -OCT. 2, 8, 14, 17 & 23, 2019 11/30/2019 MEETINGS -NOVEMBER 5, 6, 7, 22 & 25 1/31/2020 MEETINGS -JANUARY 6, 8, 14, 16, 22, 27 & 30 12/31/2019 MEETING -DECEMBER 9 2/29/2020 MEETINGS -FEBRUARY 3, 5 & 10 3a!.l2020 MEETINGS -MARCH 11 & 16 9/19/2019 ACWA REGION 8 LEGISLATIVE FORUM LODGING -COURTYARD BY MARRIOTT TRIP TO LA FOR LEGISLATIVE ROUNDTABLE -TOLL CHARGE 11/22/2019 CRWUA CONFERENCE -BALLYS HOTEL ADVANCE DEP COLORADO RIVER WATER U REGISTRATION CRWUA CONFERENCE -AIRFARE 12/11/2019 CRWUA MEALS AND TRANSPORTATION 2a!.f2020 AIRFARE AND LODGING FOR CANCELLED_S_Q_C!::fl\lVI_BER MEXICO TRIP Sum of Amount 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 152.00 14,288.00 81.20 73.66 223.30 93.38 109.04 51.04 32.48 5.75 30.48 70.15 770.48 45.24 67.86 30.16 75.40 75.40 104.65 15.08 44.85 29.90 488.54 213.68 6.62 417.24 505.00 207.97 178.26 462A5 1,991.22 $ 18,158.84 STAFF REPORT TYPE MEETING: Regular Board Meeting MEETING DATE:October 7, 2020 SUBMITTED BY: Jose Martinez, General Manager W.O./G.F. NO: APPROVED BY: Susan Cruz, District Secretary Jose Martinez, General Manager DIV. NO. SUBJECT:Adoption of Ordinance No. 579 Amending Section 6, Conflict of Interest Code, of the District’s Code of Ordinances GENERAL MANAGER’S RECOMMENDATION: That the Board adopt Ordinance No. 579 amending Section 6, Conflict of Interest Code (COIC), contained within the District’s Code of Ordinances to update the position titles required to file a Form 700; to include the Political Reform Act (Government Code Section 8100, et seq.) language within the District’s Code; and to update the Appendix to reflect current Statute language. PURPOSE: To amend Section 6, COIC, contained within the District’s Code of Ordinances to update the position titles required to file a Form 700; to include the Political Reform Act (Government Code Section 8100, et seq.) language within the District’s Code; and to update the Appendix to reflect current Statute language. COMMITTEE ACTION: See Attachment A. ANALYSIS: As required by the Political Reform Act (“Act”), staff has conducted a biennial review of the District’s COIC. The District’s General Counsel reviewed the COIC and has suggested that the District include the Political Reform Act (Government Code Section 8100, et seq.) AGENDA ITEM 6 language within the District’s Code. The language has been added at the beginning of the COIC and states: The Political Reform Act (Government Code section 81000, et seq.) requires state and local government agencies to adopt and promulgate conflict of interest codes. The Fair Political Practices Commission has adopted a regulation (2 Cal. Code of Regs. Sec. 18730) that contains the terms of a standard conflict of interest code, which can be incorporated by reference in an agency’s code. After public notice and hearing, the standard code may be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act. Therefore, the terms of 2 California Code of Regulations Section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission are hereby incorporated by reference. This regulation and the attached Appendix, designating positions and establishing disclosure requirements, shall constitute the Conflict of Interest Code of the Otay Water District (District). In addition, as the Statute language has changed with regard to District officials who manage public investments and are not subject to the District’s COIC except with respect to its disqualification provisions, and must file disclosure statements under Government Code Section 87200 et seq., the District’s General Counsel has updated the verbiage in the Appendix of the District’s COIC with current Statute language as follows: District Officials who manage public investments, as defined by 2 Cal. Code of Regs. § 18701 (b) are not subject to the District's Conflict of Interest Code except with respect to its disqualification provisions. They must file disclosure statements under Government Code § 87200 et seq. [2 CCR § 18730(b)(3)] These positions are listed above for informational purposes only. Individuals holding the positions listed below are officials who manage public investments and who must file their disclosure statements under Government Code Section 87200: Members of the Board of Directors General Manager Chief Financial Officer Asst. Chief Financial Officer Financial Consultants Individuals holding the above-listed positions may contact the Fair Political Practices Commission for assistance or written advice regarding their filing obligations if they believe that their position has been categorized incorrectly. The Fair Political Practices Commission makes the final determination whether a position is covered by Government Code Section 87200. Government Code Section 87200 requires that individuals holding the above-listed positions shall, each year at a time specified by commission regulations, file a statement disclosing their investments, their interests in real property and their income during the period since the previous statement filed. The statement shall include any investments and interest in real property held at any time during the period covered by the statement, whether or not they are still held at the time of filing. The footnote in the COIC Appendix has also been updated to reflect current Statute language. The new added footnote language follows: 1 Consultants/New Positions are included in the list of designated positions and shall disclose pursuant to the broadest disclosure category in the code, subject to the following limitation: The General Manager may determine in writing that a particular consultant or new position, although a “designated position,” is hired to perform a range of duties that is limited in scope and, thus, not required to fully comply with the disclosure requirements in this section. Such written determination shall include a description of the consultant’s or new position’s duties and, based upon that description, a statement of the extent of the disclosure requirements. The written determination is a public record and shall be retained for public inspection in the same manner and location as this Conflict of Interest Code (Gov. Code section 81008). Further, the District has made organizational changes that affect the titles listed in its COIC. The District no longer has an Asst. Chief of Engineering or an Asst. Chief of Operations. Accordingly, the following titles have been deleted and are being removed from the Appendix of the COIC: •Asst. Chief of Engineering •Asst. Chief of Water Operations Ordinance No. 579 is submitted for the Board’s approval to amend the COIC as indicated above. A strike-thru copy of the COIC is attached to the ordinance for reference. FISCAL IMPACT: None. LEGAL IMPACT: None. Attachments: Attachment A – Committee Notes Attachment B - Ordinance No. 579 Strike-Thru Copy of the District’s COIC Attachment C – Clean Copy of the Proposed COIC ATTACHMENT A SUBJECT/PROJECT:Adoption of Ordinance No. 579 Amending Section 6, Conflict of Interest Code, of the District’s Code of Ordinances COMMITTEE ACTION: This section will be updated with comments from the Finance and Administration Committee discussion from their meeting to be held on September 22, 2020. Page 1 of 1 ORDINANCE NO. 579 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING SECTION 6, CONFLICT OF INTEREST CODE, OF THE DISTRICT’S CODE OF ORDINANCE BE IT ORDAINED by the Board of Directors of Otay Water District that the District’s Code of Ordinances, Section 6, Conflict of Interest Code (COIC), be amended to update the position titles required to file a Form 700; to include the Political Reform Act (Government Code Section 8100, et seq.) language within the District’s Code; and to update the Appendix to reflect current Statute language. The amendments are presented in Exhibit A attached to this ordinance. NOW, THEREFORE, BE IT RESOLVED that the amendments to Section 6, Conflict of Interest Code, to the District’s Code of Ordinances shall become effective immediately upon adoption. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting duly held this 7th day of October 2020, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ________________________________ President ATTEST: _____________________________ District Secretary Attachment B 6-1 OTAY WATER DISTRICT CONFLICTS OF INTEREST CODE DIVISION I DISTRICT ADMINISTRATION CHAPTER 5 PERSONNEL PRACTICES SECTION 6 CONFLICT OF INTEREST CODE The Political Reform Act (Government Code section 81000, et seq.) requires state and local government agencies to adopt and promulgate conflict of interest codes. The Fair Political Practices Commissison has adopted a regulation (2 Cal. Code of Regs. Sec. 18730) that contains the terms of a standard conflict of intertest code, which can be incorporated by reference in an agency’s code. After public notice and hearing, the standard code may be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act. Therefore, the terms of 2 California Code of Regulations Section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission are hereby incorporated by reference. This regulation and the attached Appendix, designating positions and establishing disclosure requirements, shall constitute the cConflict of iInterest cCode of the Otay Water District (District). 6.01 DEFINITIONS The definitions contained in the Political Reform Act of 1974 (Government Code Sections 81000 et seq.), regulations of the Fair Political Practices Commission (2 Cal. Code of Regs. Sections 18100, et seq.), and any amendments to the Act or regulations, are incorporated by reference into this Conflict of Interest Code. 6.02 DESIGNATED EMPLOYEES The persons holding positions listed in the Appendix are designated employees. It has been determined that these persons make or participate in the making of decisions which may foreseeably have a material effect on financial interests. The General Manager or his/her designee shall have the authority to designate any person holding a position within the District as a person designated to provide disclosures regardless of whether or not the position that the person holds is included in the Appendix if, in the view of the General Manager or his/her designee, the person has the potential to make or participate in the making of decisions which may foreseeably have a material effect on financial interests. Exhibit A 6-2 6.03 DISCLOSURE CATEGORIES This Code does not establish any disclosure obligation for those designated employees who are also specified in Government Code Section 87200 if they are designated in this code in that same capacity, or if the geographical jurisdiction of this agency is the same as or is wholly included within the jurisdiction in which those persons must report their financial interest pursuant to Article 2 of Chapter 7 of the Political Reform Act, Government Code Sections 87200, et seq.1 In addition, this code does not establish any disclosure obligation for any designated public officials who are designated in a conflict of interest code for another agency, if all of the following apply: (A) The geographical jurisdiction of this agency is the same asor is wholly included within the jurisdiction of the other agency; (B) The disclosure assigned in the code of the other agency is the same as that required under Article 2 of Chapter 7 of the Political Reform Act, Government Code Section 87200; and (C) The filing officer is the same for both agencies. Such persons are covered by this Code for disqualificationpurposes only. With respect to all other designated employees, the disclosure categories set forth in the Appendix specify which kinds of financial interests are reportable. Such a designated employee shall disclose in his or her Statement of Economic Interest those financial interests he or she has which are of the kind described in the disclosure categories to which he or she is assigned in the Appendix. It has been determined that the financial interests set forth in a designated employee’s disclosure categories are the kinds of financial interests which he or she foreseeably can affect materially through the conduct of his or her office. 6.04 STATEMENTS OF ECONOMIC INTERESTS: PLACE OF FILING All officials and employees required to submit a Statement of Economic Interest (employees in Designated Positions) shall file their statements with the General Manager, or his or her designee. The District shall make and retain a copy of all statements filed by Designated Positions and forward the originals of such statements to 1 Designated employees who are required to file statements of economic interest under any other agency’s Conflict of Interest Code or under Article 2 for a different jurisdiction, may expand their statement of economic interests to cover reportable interest in both jurisdictions, and file copies of this expanded statement with both entities in lieu of filing separate and district statements, provided that each copy of such expanded statement filed in place of an original is signed and verified by the designated employee as if it were an original. See Government Code Section 81004. 6-3 the Executive Office of the Board of Supervisors of San Diego County. All retained statements, originals or copies shall be available for public inspection and reproduction. (Cal. Gov’t Code § 81008).2 The General Manager, or his or her designee may file Statements of Economic Interests electronically in accordance with the provisions of Government Code Section 87500.2. 6.05 STATEMENTS OF ECONOMIC INTERESTS: TIME OF FILING (A) Initial Statements. All designated employees employed bythe agency on the effective date of this code, as originally adopted, promulgated, and approved by the code reviewing body, shall file statements within 30 days after the effective date of this code. Thereafter, each person already in a position when it is designated by an amendment to this code shall file an initial statement within 30 days after the effective date of the amendment. (B) Assuming Office Statements. All persons assuming designated positions after the effective date of this code shall file statements within 30 days after assuming the designated positions, or if subject to State Senate confirmation, 30 days after being nominated or appointed. If a person assumes an office between October 1 and December 31 and files an assuming office Statement of Economic Interests, that person need not file an annual Statement of Economic Interests pursuant to Section 87203 until one year later than the date specified in subsection C below. (C) Annual Statements. All designated employees shall file statements no later than April 1. (D) Leaving Office Statements. All persons who leave designated positions shall file statements within 30 days after leaving office. (E) Military Service. If a person reports for military service as defined in the Servicemember's Civil Relief Act, the deadline for the annual statement of economic interests is 30 days following his or her return to office, provided the person, or someone authorized to represent the person's interests, notifies the filing officer in writing prior to the applicable filing deadline that he or she is subject to that federal statute and is unable to meet the applicable deadline, and provides the filing officer verification of his or her military status. 2 See Government Code section 81010 and 2 Cal. Code of Regs. section 18115 for the duties of filing officers and persons in agencies who make and retain copies of statements and forward the originals to the filing officer. 6-4 6.06 STATEMENTS FOR PERSONS WHO RESIGN PRIOR TO ASSUMING OFFICE Any person who resigns within 12 months of initial appointment, or within 30 days of the date of notice provided by the filing officer to file an assuming office statement, is not deemed to have assumed office or left office, provided he or she did not make or participate in the making of, or use his or her position to influence any decision and did not receive or become entitled to receive any form of payment as a result of his or her appointment. Such persons shall not file either an assuming or a leaving office statement. (A) Any person who resigns a position within 30 days of the dateof a notice from the filing officer shall do both of the following: 1. File a written resignation with the appointing power; and 2. File a written statement with the filing officer declaringunder penalty of perjury that during the period between appointment and resignation he or she did not make,participate in the making, or use the position to influenceany decision of the agency or receive, or become entitled to receive, any form of payment by virtue of being appointed tothe position. 6.07 CONTENTS OF AND PERIOD COVERED BY STATEMENTS OF ECONOMICINTERESTS (A) Contents of Initial Statements Initial statements shall disclose any reportable investments,interests in real property and business positions held on the effective date of the code and income received during the 12 months prior to the effective date of the code. (B) Contents of Assuming Office Statements Assuming office statements shall disclose any reportableinvestments, interests in real property and business positions held on the date of assuming office or on the date of appointment, and income received during the 12 months prior to the date of assuming office or the date of being appointed, respectively. (C) Contents of Annual Statements Annual statements shall disclose any reportable investments,interests in real property, income and business positions held or received during the previous calendar year provided, however, that the period covered by an employee’s first annual statement shall begin on 6-5 the effective date of the code or the date of assuming office, whichever is later. (D) Contents of Leaving Office Statements Leaving office statements shall disclose reportable investments,interest in real property, income and business positions held or received during the period between the closing date of the last statement filed and the date of leaving office. 6.08 MANNER OF REPORTING Statements of economic interest shall be made on forms prescribed by the Fair Political Practices Commission and supplied by the agency, and shall contain the following information: (A) Investments and Real Property Disclosure When an investment or an interest in real property3 is required to be reported4, the statement shall contain the following: 1. A statement of the nature of the investment or interest; 2. The name of the business entity in which each investment is held, and a general description of the business activity inwhich the business entity is engaged; 3. The address or other precise location of the real property; 4. A statement whether the fair market value of the investmentor interest in real property equals or exceeds two thousanddollars ($2,000), exceeds ten thousand dollars ($10,000), exceeds one hundred thousand dollars ($100,000), or exceedsone million dollars ($1,000,000). (B) Personal Income Disclosure When personal income is required to be reported5, the statementshall contain: 3 For the purpose of disclosure only (not disqualification), an interest in real property does not include the principal residence of the filer. 4 Investments and interests in real property which have a fair market value of less than $2,000 are not investments and interests in real property within the meaning of the Political Reform Act. However, investments or interests in real property of an individual include those held by the individual’s spouse and dependent children as well as a pro rata share of any investment or interest in real property of any business entity or trust in which the individual, spouse and dependent children own, in the aggregate, a direct, indirect or beneficial interest of 10 percent or greater. 6-6 1. The name and address of each source of income aggregating $500 or more in value or $50 or more in value if the income was a gift, and a general description of the business activity, if any, of each source; 2. A statement whether the aggregate value of income from each source, or in the case of a loan, the highest amount owed to each source, was one thousand dollars ($1,000) or less, greater than one thousand dollars ($1,000), greater than ten thousand dollars ($10,000), or greater than one hundred thousand dollars ($100,000); 3. A description of the consideration, if any, for which the income was received; 4. In the case of a gift, the name, address and business activity of the donor and any intermediary through which the gift was made; a description of the gift; the amount or value of the gift; and the date on which the gift was received. A gift includes forgiveness of a debt or a rebate or discount of a debt owed6; 5. In the case of a loan given or received, the annual interest rate and the security, if any, given for the loan and the term of the loan. 6. Gov. Code section 82030 defines income and specifically excludes: (a) Any loan or loans from a commercial lending institution which are made in the lender's regular course of business on terms available to members of the public without regard to official status. (b) Any loan from or payments received on a loan made to an individual's spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, uncle, aunt, or first cousin, or the spouse of any such person, provided that a loan or loan payment received from any such person shall be considered income if he or she is acting as an agent or intermediary for any person not covered by this paragraph. 5 A designated employee’s income includes his or her community property interest in the income of his or her spouse but does not include salary or reimbursement for expenses received from a state, local or federal government agency. 6 2 Cal. Code of Regs. section 18940 6-7 (c) Any indebtedness created as part of a retail installment or credit card transaction if made in the lender's regular course of business on terms available to members of the public without regard to official status. (C) Business Entity Income Disclosure When income of a business entity, including income of a sole proprietorship, is required to be reported7, the statement shall contain: 1. The name, address, and a general description of the business activity of the business entity; 2. The name of every person from whom the business entity received payments if the filer’s pro rata share of gross receipts from such person was equal to or greater than $10,000. (D) Business Position Disclosure When business positions are required to be reported, a designated employee shall list the name and address of each business entity in which he or she is a director, officer, partner, trustee, employee or in which he or she holds any position of management, a description of the business activity in which the business entity is engaged, and the designated employee’s position with the business entity. (E) Acquisition or Disposal During Reporting Period In the case of an annual or leaving office statement, if an investment or an interest in real property was partially or wholly acquired or disposed of during the period covered by the statement, the statement shall contain the date of acquisition or disposal. 6.09 PROHIBITION ON RECEIPT OF HONORARIA A. No designated public official shall accept any honorarium from any source, if the member or employee would be required to report the receipt of income or gifts from that source on his or her statement of economic interests. 7 Income of a business entity is reportable if the direct, indirect, or beneficial interest of the filer and the filer’s spouse in the business entity aggregates a 10 percent or greater interest. In addition, the disclosure of persons who are clients or customers of a business entity is required only if the clients or customers are within one of the disclosure categories of the filer. 6-8 Subdivisions (a), (b), and (c) of Government Code Section 89501 shall apply to the prohibitions in this section. This section shall not limit or prohibit payments, advances, or reim-bursements for travel and related lodging and subsistence authorized by Government Code section 89506. 6.10 PROHIBITION ON RECEIPT OF GIFTS IN EXCESS OF AMOUNT ESTABLISHED BY LAW8 A. No designated public official shall accept gifts with a totalvalue of more than the maximum amount established by law, in any calendar year, from any single source, if the member or employee wouldbe required to report the receipt of income or gifts from that source on his or her statement of economic interests. Subdivisions (e), (f), and (g) of Government Code section 89503 shall apply to the prohibitions in this section. 6.11 LOANS TO PUBLIC OFFICIALS A. No elected officer of a state or local government agency shall,from the date of his or her election to office through the date that he or she vacates office, receive a personal loan from any officer,employee, member, or consultant of the state or local governmentagency in which the elected officer holds office or over which the elected officer’s agency has direction and control. B. No public official who is exempt from the state civil service system pursuant to subdivisions (c), (d), (e), (f), and (g) of Section4 of Article VII of the Constitution shall, while he or she holdsoffice, receive a personal loan from any officer, employee, member, or consultant of the state or local government agency in which the publicofficial holds office or over which the public official’s agency has direction and control. This subdivision shall not apply to loans madeto a public official whose duties are solely secretarial, clerical, ormanual. C. No elected officer of a state or local government agency shall,from the date of his or her election to office through the date that he or she vacates office, receive a personal loan from any person whohas a contract with the state or local government agency to which thatelected officer has been elected or over which that elected officer’s agency has direction and control. This subdivision shall not apply to 8 Designated Persons are prohibited from accepting gifts from any single source in a calendar year with a total value in excess of designated amounts. See Govt. Code § 89503, sub-divisions (e), (f) and (g). [Note: Pursuant to Gov. Code § 89503(f), the FPPC adjusts the gift limit every odd-numbered year to reflect changes in the Consumer Price Index; therefore, the $470 limit adopted by the FPPC in January of 2017 will be updated in January 2019 and every odd year thereafter, until further notice. See also 2 CCR § 18940.2] 6-9 loans made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card transaction, if the loan is made or the indebtedness created in the lender’s regular course of business on terms available to members of the public without regard to the elected officer’s official status. D. No public official who is exempt from the state civil service system pursuant to subdivisions (c), (d), (e), (f), and (g) of Section 4 of Article VII of the Constitution shall, while he or she holds office, receive a personal loan from any person who has a contract with the state or local government agency to which that elected officer has been elected or over which that elected officer’s agency has direction and control. This subdivision shall not apply to loans made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card transaction, if the loan is made or the indebtedness created in the lender’s regular course of business on terms available to members of the public without regard to the elected officer’s official status. This subdivision shall not apply to loans made to a public official whose duties are solely secretarial, clerical, or manual. E. This section shall not apply to the following: 1. Loans made to the campaign committee of an elected officer or candidate for elective office. 2. Loans made by a public official’s spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in- law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or the spouse of any such persons, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this section. 3. Loans from a person which, in the aggregate, do not exceed five hundred dollars ($500) at any given time. 4. Loans made, or offered in writing, before January 1, 1998. 6.12 LOAN TERMS A. Except as set forth in subdivision (B), no elected officer of a state or local government agency shall, from the date of his or her election to office through the date he or she vacates office, receive a personal loan of five hundred dollars ($500) or more, except when the loan is in writing and clearly states the terms of the loan, including the parties to the loan agreement, date of the loan, amount of the loan, term of the loan, date or dates when payments shall be due on the loan and the amount of the payments, and the rate of interest paid on the loan. B. This section shall not apply to the following types of loans: 6-10 1. Loans made to the campaign committee of the elected officer. 2. Loans made to the elected officer by his or her spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or the spouse of any such person, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this section. 3. Loans made, or offered in writing, before January 1, 1998. C. Nothing in this section shall exempt any person from anyother provision of Title 9 of the Government Code. 6.13 PERSONAL LOANS A. Except as set forth in subdivision (B), a personal loan receivedby any designated public official shall become a gift to thedesignated public official for the purposes of this section in thefollowing circumstances: 1. If the loan has a defined date or dates for repayment, when the statute of limitations for filing an action for default has expired. 2. If the loan has no defined date or dates for repayment, whenone year has elapsed from the later of the following: a. The date the loan was made. b. The date the last payment of one hundred dollars ($100)or more was made on the loan. c. The date upon which the debtor has made payments on theloan aggregating to less than two hundred fifty dollars ($250) during the previous 12 months. B. This section shall not apply to the following types of loans: 1. A loan made to the campaign committee of an elected officer or a candidate for elective office. 2. A loan that would otherwise not be a gift as defined in thistitle. 3. A loan that would otherwise be a gift as set forth undersubdivision (A), but on which the creditor has taken reasonable action to collect the balance due. 4. A loan that would otherwise be a gift as set forth undersubdivision (A), but on which the creditor, based on reasonable 6-11 business considerations, has not undertaken collection action. Except in a criminal action, a creditor who claims that a loan is not a gift on the basis of this paragraph has the burden of proving that the decision for not taking collection action was based on reasonable business considerations. 5. A loan made to a debtor who has filed for bankruptcy and theloan is ultimately discharged in bankruptcy. C. Nothing in this section shall exempt any person from any otherprovisions of Title 9 of the Government Code. 6.14 DISQUALIFICATION No designated employee shall make, participate in making, or in any way attempt to use his or her official position to influence the making of any governmental decision which he or she knows or has reason to know will have a reasonably foreseeable material financial effect, distinguishable from its effect on the public generally, on the official or a member of his or her immediate family or on: (A) Any business entity in which the designated employee has adirect or indirect investment worth $2,000 or more; (B) Any real property in which the designated employee has adirect or indirect interest worth $2,000 or more; (C) Any source of income, other than gifts and other than loansby a commercial lending institution in the regular course of business on terms available to the public without regard toofficial status, aggregating $500 or more in value provided to, received by or promised to the designated employeewithin 12 months prior to the time when the decision ismade; (D) Any business entity in which the designated employee is a director, officer, partner, trustee, employee, or holds anyposition of management; or (E) Any donor of, or any intermediary or agent for a donor of, agift or gifts aggregating to the maximum amount established by law, or more, in value provided to, received by, orpromised to the designated employee within 12 months priorto the time when the decision is made. 6.15 LEGALLY REQUIRED PARTICIPATION 6-12 No designated public official shall be prevented from making or participating in the making of any decision to the extent his or her participation is legally required for the decision to be made. The fact that the vote of a designated public official who is on a voting body is needed to break a tie does not make his or her participation legally required for purposes of this section. 6.16 DISQUALIFICATION OF STATE OFFICERS AND EMPLOYEES In addition to the general disqualification provisions of Section 6.14, no state administrative official shall make, participate in making, or use his or her official position to influence any governmental decision directly relating to any contract where the state administrative official knows or has reason to know that any party to the contract is a person with whom the state administrative official, or any member of his or her immediate family has, within 12 months prior to the time when the official action is to be taken: (A) Engaged in a business transaction or transactions on terms not available to members of the public, regarding any investment or interest in real property; or (B) Engaged in a business transaction or transactions on terms not available to members of the public regarding the rendering of goods or services totaling in value $1000 or more. 6.17 DISCLOSURE OF DISQUALIFYING INTEREST When a designated public official determines that he or she should not make a governmental decision because he or she has a disqualifying interest in it, the determination not to act may be accompanied by disclosure of the disqualifying interest. 6.18 ASSISTANCE OF THE COMMISSION AND COUNSEL Any designated employee who is unsure of his or her duties under this code may request assistance from the Fair Political Practices Commission pursuant to Government Code Section 83114 and 2 CCR Sections 18329 and 18329.5 or from the attorney for his or her agency, provided that nothing in this section requires the attorney for the agency to issue any formal or informal opinion. 6.19 VIOLATIONS This code has the force and effect of law. Designated employees violating any provision of this code are subject to the administrative, criminal, and civil sanctions provided in the Political Reform Act, Government Code Sections 81000 – 91015. In 6-13 addition, a decision in relation to which a violation of the disqualification provisions of this code or of Government Code Section 87100 or 87450 has occurred may be set aside as void pursuant to Government Code Section 91003. 6.20 PROHIBITED TRANSACTIONS Members of the Board of Directors and Designated Employees shall comply with the Prohibited Transactions policy, annexed hereto as Exhibit A, pursuant to California Government Code Sections 1090, et seq.6.21 INCOMPATIBLE ACTIVITIES Members of the Board of Directors, District officers, and all other District employees shall comply with the Incompatible Activities policy, annexed hereto as Exhibit B, pursuant to California Government Code Sections 1126, et seq. 6-14 APPENDIX OTAY WATER DISTRICT CONFLICT OF INTEREST CODE DESIGNATED POSITIONS DESIGNATED EMPLOYEES’ TITLE OR FUNCTION__ DISCLOSURE CATEGORIES ASSIGNED General Manager 1, 2, 3, 4, 5, 6 District Secretary 6 Assistant Chief of Engineering 1, 2, 3, 4, 6, 7 Assistant Chief of Finance 1, 2, 5, 6, 7 Assistant Chief of Water Operations 1, 2, 3, 4, 6, 7 Chief of Administrative Services 1, 2, 3, 4, 5, 6, 7 Chief Financial Officer 1, 2, 5, 6, 7 Chief of Engineering 1, 2, 3, 4, 6, 7 Chief of Water Operations 1, 2, 3, 4, 6, 7 Associate Civil Engineer 1, 2, 3, 4, 7 Communications Officer 6 Customer Service Manager 2, 5, 7 Environmental Compliance Specialist 1, 2, 3, 4, 7 Engineering Manager 1, 2, 3, 4, 7 Field Services Manager 1, 2, 3, 4, 7 Finance Manager 2, 5, 7 GIS Manager 3, 6, 7 Human Resources Manager 3, 6 IT Manager 3, 6, 7 Network Engineer 3, 6, 7 6-15 Purchasing and Facilities Manager 2, 6 Safety and Security Specialist 1, 2, 3, 4, 6 Senior Procurement and Contracting Analyst 6 Senior Civil Engineer 1, 2, 3, 4, 7 System Operations Manager 1, 2, 3, 4, 7 Utility Services Manager 1, 2, 3, 4, 7 Consultant/New Positions9 1, 2, 3, 4, 5, 6 District Officials who manage public investments, as defined by 2 Cal. Code of Regs. § 18701 (b) are not subject to the District's Conflict of Interest Code except with respect to its disqualification provisions. They must file disclosure statements under Government Code § 87200 et seq. [2 CCR § 18730(b)(3)] These positions are listed above for informational purposes only. Individuals holding the positions listed below are officials who manage public investments and who must file their disclosure statements under Government Code Section 87200: Members of the Board of Directors General Manager Chief Financial Officer Asst. Chief Financial Officer Financial Consultants Individuals holding the above-listed positions may contact the Fair Political Practices Commission for assistance or written advice regarding their filing obligations if they believe that their position 9 Consultants/New Positions are included in the list of designated positions and shall disclosure pursuant to the broadest disclosure category in the code, subject to the following limitation: The General Manager may determine in writing that a particulart consultant or new position, although a “designated position,” is hired to perreform a range of duties that is limited in scope and, thus, not required to fully comply with the disclosure requirements in this section. Such written determination shall include a description of the consultant’s or new position’s duties and, based upon that description, a statement of the extent of the disclosure requirements. The X’swritten determination is a public record and shall be retained for public inspection in the same manner and location as this cConflict of iInterest cCode (Gov. Code section 81008) Consultants are required to file disclosure statements where they: (a) conduct research and arrive at conclusions with respect to rendition of information, advice, recommendation or counsel independent of control and direction of the agency or any agency official other than normal contract monitoring; and (b) possess no authority with respect to any agency decision beyond the rendition of information, advice, recommendation or counsel. The determination as to whether a consultant shall be required to file a disclosure statement shall be made by the General Manager or his or her designee. 6-16 has been categorized incorrectly. The Fair Political Pracitices Commission makes the final determination whether a position is covered by Government Code Section 87200. Government Code Section 87200 requires that individuals holding the above-listed positions shall, each year at a time specified by commission regulations, file a statement disclosing their investments, their interests in real property and their income during the period since the previous statement filed. The statement shall include any investments and interest in real property held at any time during the period covered by the statement, whether or not they are still held at the time of filing. The Treasurer and all District Officials who manage the investment of public funds are included in and governed by this Conflict of Interest Code only with respect to its disqualification provisions. For purposes of disclosure, the Treasurer and all District Officials who manage the investment of public funds are governed by the statutory conflict of interest provisions of Article 2 of Chapter 7 of the Political Reform Act of 1974. (Government Code Sections 87200, et seq.) 6-17 APPENDIX, CONTINUED DISCLOSURE CATEGORIES The disclosure categories listed below identify the types of investments, business entities, sources of income, or real property which the designated employee must disclose for each disclosure category to which he or she is assigned. Category 1: All investments and business positions in, and sources of income from, all business entities that do business or own real property in the District, plan to do business or own real property in the District within the next year or have done business or owned real property in the District within the past two years. Category 2: All interests in real property which are located in whole or in part within, or not more than two (2) miles outside the boundaries of the District. Category 3: All investments and business positions in, and sources of income from, business entities subject to the regulatory, permit or licensing authority of the Designated Employee’s Department, will be subject to such authority within the next year or have been subject to such authority within the past two years. Category 4: All investments, business positions, and sources of income from, business entities that are engaged in land development, construction or the acquisition or sale of real property in the District, plan to engage in such activities in the District within the next year or have engaged in such activities in the District within the past two years. Category 5: All investments and business positions in, and sources of income from, business entities that are banking, savings and loan or other financial institutions. Category 6: All investments and business positions in, and sources of income from, business entities that provide services, supplies, materials, machinery, or equipment of a type purchased, leased, used, or administered by the District. Category 7: All investments and business positions in, and sources of income from, business entities that provide services, supplies, materials, machinery, or equipment of a type purchased, leased, used, or administered by the Designated Employee’s Department. 6-18 EXHIBIT A Prohibited Transactions for Specified Personnel Members of the Board of Directors (“Members”) shall comply with this Prohibited Transactions policy pursuant to California Government Code §§ 1090, et seq. Members shall not be financially interested in any contract made by them in their official capacity, or by any body or board of which they are members. Members shall not be purchasers at any sale or vendors at any purchase made by them in their official capacity. Members shall not be deemed to be interested in a contract entered into by a body or board of which they are members if the Member has only a remote interest in the contract and if the fact of that interest is disclosed to the body or board of which the Member is a member and noted in its official records, and thereafter the body or board authorizes, approves, or ratifies the contract in good faith by a vote of its membership sufficient for the purpose without counting the vote or votes of the Board of Directors member with the remote interest. “Remote interest” shall be defined as in California Government Code § 1091(b). Members shall not be considered to be financially interested in a contract if their interest is including, but not limited to, any of the following (Government Code § 1091.5): 1. That of an officer in being reimbursed for his/her actualand necessary expenses incurred in the performance of an official duty; 2. That of a recipient of public services generally provided by the public body or board of which he/she is a member, on the sameterms and conditions as if he or she were not a member of the board; 3. That of a landlord or tenant of the contracting party if such contracting party is the federal government or any federaldepartment or agency, this state or an adjoining state, any department or agency of this state or an adjoining state, anycounty or city of this state or an adjoining state, or an publiccorporation or special, judicial or other public district of this state or an adjoining state unless the subject matter of suchcontract is the property in which such officer or employee has such interest as landlord or tenant in which even his/herinterest shall be deemed a remote interest within the meaning of,and subject to, the provisions of Government Code 1091; 6-19 4. That of a spouse of an officer or employee of a publicagency if his/her spouse’s employment or office-holding has existed for at least one year prior to his/her election orappointment; 5. That of a non-salaried member of a nonprofit corporation,provided that such interest is disclosed to the board at the time of the first consideration of the contract, and provided furtherthat such interest is noted in its official records; 6. That of a non-compensated officer of a nonprofit, tax-exemptcorporation, which, as one of its primary purposes, supports the functions of the board or to which the board has legal obligationto give particular consideration, and provided further that suchinterest is noted in its official records; For purposes of this paragraph, an officer is “noncompensated” even though he or she receives reimbursement from the nonprofit, tax-exempt corporation for necessary travel and other actual expenses incurred in performing the duties of his or her office. 7. That of compensation for employment with a governmentalagency, other than the governmental agency that employs the officer or employee, provided that the interest is disclosed tothe board at the time of consideration of the contract, andprovided further that the interest is noted in its official records; 8. That of an attorney of the contracting party of that of anowner, officer, employee or agent of a firm which renders, or hasrendered, service to the contracting party in the capacity of stockbroker, insurance agent, insurance broker, real estateagent, or real estate broker if these individuals have not received and will not receive remuneration, consideration, or acommission as a result of the contract and if these individualshave an ownership interest of less than 10 percent in the law practice or firm, stock brokerage firm, insurance firm or realestate firm. In addition, Members shall not be deemed to be interested in a contract made pursuant to competitive bidding under a procedure established by law if their sole interest is that of an officer, director, or employee of a bank or savings and loan association with which a party to the contract has the relationship of borrower or depositor, debtor or creditor (Government Code § 1091.5). Authority: California Government Code §§ 1090, et seq. 6-20 EXHIBIT B Incompatible Activities Policy District officers, members of the Board of Directors, and all other District employees (collectively, “district personnel”) shall comply with this Incompatible Activities policy pursuant to California Government Code §§ 1125, et seq. District personnel shall not engage in any employment, activity, or enterprise for compensation which is inconsistent, incompatible, in conflict with, or inimical to his or her duties as a member of the Board of Directors, or with the duties, functions, or responsibilities of his or her appointing power or the agency by which he or she is employed. The outside employment, activity, or enterprise of district personnel is prohibited if it: (1) involves the use for private gain or advantage of his or her local District time, facilities, equipment and supplies; or the badge, uniform, prestige, or influence of his or her local District office or employment or, (2) involves receipt or acceptance by district personnel of any money or other consideration from anyone other than the District for the performance of an act which district personnel, if not performing such act, would be required or expected to render in the regular course or hours of their local District employment or as a part of their duties as a local District officer or employee or, (3) involves the time demands as would render performance of his or her duties as a local district personnel member less efficient. Nothing in this policy shall be interpreted to prohibit any outside employment, activity, counsel, or enterprise on behalf of another governmental entity, subject to common law and professional conflict of interest rules. Copies of this regulation shall be posted in prominent places at the District Office. District personnel who violate this regulation may be subject to discipline as set forth in the applicable Code of Ordinances and Policies. Board of Directors members who violate this section may be subject to censure. Disciplinary appeals by district personnel shall be handled pursuant to applicable Code of Ordinances and Policies. Authority: California Government Code §§ 1125, et seq. 6-1 OTAY WATER DISTRICT CONFLICTS OF INTEREST CODE DIVISION I DISTRICT ADMINISTRATION CHAPTER 5 PERSONNEL PRACTICES SECTION 6 CONFLICT OF INTEREST CODE The Political Reform Act (Government Code section 81000, et seq.) requires state and local government agencies to adopt and promulgate conflict of interest codes. The Fair Political Practices Commission has adopted a regulation (2 Cal. Code of Regs. Sec. 18730) that contains the terms of a standard conflict of interest code, which can be incorporated by reference in an agency’s code. After public notice and hearing, the standard code may be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act. Therefore, the terms of 2 California Code of Regulations Section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission are hereby incorporated by reference. This regulation and the attached Appendix, designating positions and establishing disclosure requirements, shall constitute the Conflict of Interest Code of the Otay Water District (District). 6.01 DEFINITIONS The definitions contained in the Political Reform Act of 1974 (Government Code Sections 81000 et seq.), regulations of the Fair Political Practices Commission (2 Cal. Code of Regs. Sections 18100, et seq.), and any amendments to the Act or regulations, are incorporated by reference into this Conflict of Interest Code. 6.02 DESIGNATED EMPLOYEES The persons holding positions listed in the Appendix are designated employees. It has been determined that these persons make or participate in the making of decisions which may foreseeably have a material effect on financial interests. The General Manager or his/her designee shall have the authority to designate any person holding a position within the District as a person designated to provide disclosures regardless of whether or not the position that the person holds is included in the Appendix if, in the view of the General Manager or his/her designee, the person has the potential to make or participate in the making of decisions which may foreseeably have a material effect on financial interests. Attachment C 6-2 6.03 DISCLOSURE CATEGORIES This Code does not establish any disclosure obligation for those designated employees who are also specified in Government Code Section 87200 if they are designated in this code in that same capacity, or if the geographical jurisdiction of this agency is the same as or is wholly included within the jurisdiction in which those persons must report their financial interest pursuant to Article 2 of Chapter 7 of the Political Reform Act, Government Code Sections 87200, et seq.1 In addition, this code does not establish any disclosure obligation for any designated public officials who are designated in a conflict of interest code for another agency, if all of the following apply: (A) The geographical jurisdiction of this agency is the same as or is wholly included within the jurisdiction of the other agency; (B) The disclosure assigned in the code of the other agency is the same as that required under Article 2 of Chapter 7 of the Political Reform Act, Government Code Section 87200; and (C) The filing officer is the same for both agencies. Such persons are covered by this Code for disqualification purposes only. With respect to all other designated employees, the disclosure categories set forth in the Appendix specify which kinds of financial interests are reportable. Such a designated employee shall disclose in his or her Statement of Economic Interest those financial interests he or she has which are of the kind described in the disclosure categories to which he or she is assigned in the Appendix. It has been determined that the financial interests set forth in a designated employee’s disclosure categories are the kinds of financial interests which he or she foreseeably can affect materially through the conduct of his or her office. 6.04 STATEMENTS OF ECONOMIC INTERESTS: PLACE OF FILING All officials and employees required to submit a Statement of Economic Interest (employees in Designated Positions) shall file their statements with the General Manager, or his or her designee. The District shall make and retain a copy of all statements filed by Designated Positions and forward the originals of such statements to the Executive Office of the Board of Supervisors of San Diego County. 1 Designated employees who are required to file statements of economic interest under any other agency’s Conflict of Interest Code or under Article 2 for a different jurisdiction, may expand their statement of economic interests to cover reportable interest in both jurisdictions, and file copies of this expanded statement with both entities in lieu of filing separate and district statements, provided that each copy of such expanded statement filed in place of an original is signed and verified by the designated employee as if it were an original. See Government Code Section 81004. 6-3 All retained statements, originals or copies shall be available for public inspection and reproduction. (Cal. Gov’t Code § 81008).2 The General Manager, or his or her designee may file Statements of Economic Interests electronically in accordance with the provisions of Government Code Section 87500.2. 6.05 STATEMENTS OF ECONOMIC INTERESTS: TIME OF FILING (A) Initial Statements. All designated employees employed by the agency on the effective date of this code, as originally adopted, promulgated, and approved by the code reviewing body, shall file statements within 30 days after the effective date of this code. Thereafter, each person already in a position when it is designated by an amendment to this code shall file an initial statement within 30 days after the effective date of the amendment. (B) Assuming Office Statements. All persons assuming designated positions after the effective date of this code shall file statements within 30 days after assuming the designated positions, or if subject to State Senate confirmation, 30 days after being nominated or appointed. If a person assumes an office between October 1 and December 31 and files an assuming office Statement of Economic Interests, that person need not file an annual Statement of Economic Interests pursuant to Section 87203 until one year later than the date specified in subsection C below. (C) Annual Statements. All designated employees shall file statements no later than April 1. (D) Leaving Office Statements. All persons who leave designated positions shall file statements within 30 days after leaving office. (E) Military Service. If a person reports for military service as defined in the Servicemember's Civil Relief Act, the deadline for the annual statement of economic interests is 30 days following his or her return to office, provided the person, or someone authorized to represent the person's interests, notifies the filing officer in writing prior to the applicable filing deadline that he or she is subject to that federal statute and is unable to meet the applicable deadline, and provides the filing officer verification of his or her military status. 2 See Government Code section 81010 and 2 Cal. Code of Regs. section 18115 for the duties of filing officers and persons in agencies who make and retain copies of statements and forward the originals to the filing officer. 6-4 6.06 STATEMENTS FOR PERSONS WHO RESIGN PRIOR TO ASSUMING OFFICE Any person who resigns within 12 months of initial appointment, or within 30 days of the date of notice provided by the filing officer to file an assuming office statement, is not deemed to have assumed office or left office, provided he or she did not make or participate in the making of, or use his or her position to influence any decision and did not receive or become entitled to receive any form of payment as a result of his or her appointment. Such persons shall not file either an assuming or a leaving office statement. (A) Any person who resigns a position within 30 days of the date of a notice from the filing officer shall do both of the following: 1. File a written resignation with the appointing power; and 2. File a written statement with the filing officer declaring under penalty of perjury that during the period between appointment and resignation he or she did not make, participate in the making, or use the position to influence any decision of the agency or receive, or become entitled to receive, any form of payment by virtue of being appointed to the position. 6.07 CONTENTS OF AND PERIOD COVERED BY STATEMENTS OF ECONOMIC INTERESTS (A) Contents of Initial Statements Initial statements shall disclose any reportable investments, interests in real property and business positions held on the effective date of the code and income received during the 12 months prior to the effective date of the code. (B) Contents of Assuming Office Statements Assuming office statements shall disclose any reportable investments, interests in real property and business positions held on the date of assuming office or on the date of appointment, and income received during the 12 months prior to the date of assuming office or the date of being appointed, respectively. (C) Contents of Annual Statements Annual statements shall disclose any reportable investments, interests in real property, income and business positions held or received during the previous calendar year provided, however, that the period covered by an employee’s first annual statement shall begin on the effective date of the code or the date of assuming office, whichever is later. 6-5 (D) Contents of Leaving Office Statements Leaving office statements shall disclose reportable investments, interest in real property, income and business positions held or received during the period between the closing date of the last statement filed and the date of leaving office. 6.08 MANNER OF REPORTING Statements of economic interest shall be made on forms prescribed by the Fair Political Practices Commission and supplied by the agency, and shall contain the following information: (A) Investments and Real Property Disclosure When an investment or an interest in real property3 is required to be reported4, the statement shall contain the following: 1. A statement of the nature of the investment or interest; 2. The name of the business entity in which each investment is held, and a general description of the business activity in which the business entity is engaged; 3. The address or other precise location of the real property; 4. A statement whether the fair market value of the investment or interest in real property equals or exceeds two thousand dollars ($2,000), exceeds ten thousand dollars ($10,000), exceeds one hundred thousand dollars ($100,000), or exceeds one million dollars ($1,000,000). (B) Personal Income Disclosure When personal income is required to be reported5, the statement shall contain: 3 For the purpose of disclosure only (not disqualification), an interest in real property does not include the principal residence of the filer. 4 Investments and interests in real property which have a fair market value of less than $2,000 are not investments and interests in real property within the meaning of the Political Reform Act. However, investments or interests in real property of an individual include those held by the individual’s spouse and dependent children as well as a pro rata share of any investment or interest in real property of any business entity or trust in which the individual, spouse and dependent children own, in the aggregate, a direct, indirect or beneficial interest of 10 percent or greater. 5 A designated employee’s income includes his or her community property interest in the income of his or her spouse but does not include salary or reimbursement for expenses received from a state, local or federal government agency. 6-6 1. The name and address of each source of income aggregating $500 or more in value or $50 or more in value if the income was a gift, and a general description of the business activity, if any, of each source; 2. A statement whether the aggregate value of income from each source, or in the case of a loan, the highest amount owed to each source, was one thousand dollars ($1,000) or less, greater than one thousand dollars ($1,000), greater than ten thousand dollars ($10,000), or greater than one hundred thousand dollars ($100,000); 3. A description of the consideration, if any, for which the income was received; 4. In the case of a gift, the name, address and business activity of the donor and any intermediary through which the gift was made; a description of the gift; the amount or value of the gift; and the date on which the gift was received. A gift includes forgiveness of a debt or a rebate or discount of a debt owed6; 5. In the case of a loan given or received, the annual interest rate and the security, if any, given for the loan and the term of the loan. 6. Gov. Code section 82030 defines income and specifically excludes: (a) Any loan or loans from a commercial lending institution which are made in the lender's regular course of business on terms available to members of the public without regard to official status. (b) Any loan from or payments received on a loan made to an individual's spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, uncle, aunt, or first cousin, or the spouse of any such person, provided that a loan or loan payment received from any such person shall be considered income if he or she is acting as an agent or intermediary for any person not covered by this paragraph. (c) Any indebtedness created as part of a retail installment or credit card transaction if made in the lender's regular course of business on terms 6 2 Cal. Code of Regs. section 18940 6-7 available to members of the public without regard to official status. (C) Business Entity Income Disclosure When income of a business entity, including income of a sole proprietorship, is required to be reported7, the statement shall contain: 1. The name, address, and a general description of the business activity of the business entity; 2. The name of every person from whom the business entity received payments if the filer’s pro rata share of gross receipts from such person was equal to or greater than $10,000. (D) Business Position Disclosure When business positions are required to be reported, a designated employee shall list the name and address of each business entity in which he or she is a director, officer, partner, trustee, employee or in which he or she holds any position of management, a description of the business activity in which the business entity is engaged, and the designated employee’s position with the business entity. (E) Acquisition or Disposal During Reporting Period In the case of an annual or leaving office statement, if an investment or an interest in real property was partially or wholly acquired or disposed of during the period covered by the statement, the statement shall contain the date of acquisition or disposal. 6.09 PROHIBITION ON RECEIPT OF HONORARIA A. No designated public official shall accept any honorarium from any source if the member or employee would be required to report the receipt of income or gifts from that source on his or her statement of economic interests. Subdivisions (a), (b), and (c) of Government Code Section 89501 shall apply to the prohibitions in this section. 7 Income of a business entity is reportable if the direct, indirect, or beneficial interest of the filer and the filer’s spouse in the business entity aggregates a 10 percent or greater interest. In addition, the disclosure of persons who are clients or customers of a business entity is required only if the clients or customers are within one of the disclosure categories of the filer. 6-8 This section shall not limit or prohibit payments, advances, or reim-bursements for travel and related lodging and subsistence authorized by Government Code section 89506. 6.10 PROHIBITION ON RECEIPT OF GIFTS IN EXCESS OF AMOUNT ESTABLISHED BY LAW8 A. No designated public official shall accept gifts with a total value of more than the maximum amount established by law, in any calendar year, from any single source, if the member or employee would be required to report the receipt of income or gifts from that source on his or her statement of economic interests. Subdivisions (e), (f), and (g) of Government Code section 89503 shall apply to the prohibitions in this section. 6.11 LOANS TO PUBLIC OFFICIALS A. No elected officer of a state or local government agency shall, from the date of his or her election to office through the date that he or she vacates office, receive a personal loan from any officer, employee, member, or consultant of the state or local government agency in which the elected officer holds office or over which the elected officer’s agency has direction and control. B. No public official who is exempt from the state civil service system pursuant to subdivisions (c), (d), (e), (f), and (g) of Section 4 of Article VII of the Constitution shall, while he or she holds office, receive a personal loan from any officer, employee, member, or consultant of the state or local government agency in which the public official holds office or over which the public official’s agency has direction and control. This subdivision shall not apply to loans made to a public official whose duties are solely secretarial, clerical, or manual. C. No elected officer of a state or local government agency shall, from the date of his or her election to office through the date that he or she vacates office, receive a personal loan from any person who has a contract with the state or local government agency to which that elected officer has been elected or over which that elected officer’s agency has direction and control. This subdivision shall not apply to loans made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card 8 Designated Persons are prohibited from accepting gifts from any single source in a calendar year with a total value in excess of designated amounts. See Govt. Code § 89503, sub-divisions (e), (f) and (g). [Note: Pursuant to Gov. Code § 89503(f), the FPPC adjusts the gift limit every odd-numbered year to reflect changes in the Consumer Price Index; therefore, the $470 limit adopted by the FPPC in January of 2017 will be updated in January 2019 and every odd year thereafter, until further notice. See also 2 CCR § 18940.2] 6-9 transaction, if the loan is made or the indebtedness created in the lender’s regular course of business on terms available to members of the public without regard to the elected officer’s official status. D. No public official who is exempt from the state civil service system pursuant to subdivisions (c), (d), (e), (f), and (g) of Section 4 of Article VII of the Constitution shall, while he or she holds office, receive a personal loan from any person who has a contract with the state or local government agency to which that elected officer has been elected or over which that elected officer’s agency has direction and control. This subdivision shall not apply to loans made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card transaction, if the loan is made or the indebtedness created in the lender’s regular course of business on terms available to members of the public without regard to the elected officer’s official status. This subdivision shall not apply to loans made to a public official whose duties are solely secretarial, clerical, or manual. E. This section shall not apply to the following: 1. Loans made to the campaign committee of an elected officer or candidate for elective office. 2. Loans made by a public official’s spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in- law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or the spouse of any such persons, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this section. 3. Loans from a person which, in the aggregate, do not exceed five hundred dollars ($500) at any given time. 4. Loans made, or offered in writing, before January 1, 1998. 6.12 LOAN TERMS A. Except as set forth in subdivision (B), no elected officer of a state or local government agency shall, from the date of his or her election to office through the date he or she vacates office, receive a personal loan of five hundred dollars ($500) or more, except when the loan is in writing and clearly states the terms of the loan, including the parties to the loan agreement, date of the loan, amount of the loan, term of the loan, date or dates when payments shall be due on the loan and the amount of the payments, and the rate of interest paid on the loan. B. This section shall not apply to the following types of loans: 1. Loans made to the campaign committee of the elected officer. 6-10 2. Loans made to the elected officer by his or her spouse, child, parent, grandparent, grandchild, brother, sister, parent-in- law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or the spouse of any such person, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this section. 3. Loans made, or offered in writing, before January 1, 1998. C. Nothing in this section shall exempt any person from any other provision of Title 9 of the Government Code. 6.13 PERSONAL LOANS A. Except as set forth in subdivision (B), a personal loan received by any designated public official shall become a gift to the designated public official for the purposes of this section in the following circumstances: 1. If the loan has a defined date or dates for repayment, when the statute of limitations for filing an action for default has expired. 2. If the loan has no defined date or dates for repayment, when one year has elapsed from the later of the following: a. The date the loan was made. b. The date the last payment of one hundred dollars ($100) or more was made on the loan. c. The date upon which the debtor has made payments on the loan aggregating to less than two hundred fifty dollars ($250) during the previous 12 months. B. This section shall not apply to the following types of loans: 1. A loan made to the campaign committee of an elected officer or a candidate for elective office. 2. A loan that would otherwise not be a gift as defined in this title. 3. A loan that would otherwise be a gift as set forth under subdivision (A), but on which the creditor has taken reasonable action to collect the balance due. 4. A loan that would otherwise be a gift as set forth under subdivision (A), but on which the creditor, based on reasonable business considerations, has not undertaken collection action. Except in a criminal action, a creditor who claims that a loan is not a gift 6-11 on the basis of this paragraph has the burden of proving that the decision for not taking collection action was based on reasonable business considerations. 5. A loan made to a debtor who has filed for bankruptcy and the loan is ultimately discharged in bankruptcy. C. Nothing in this section shall exempt any person from any other provisions of Title 9 of the Government Code. 6.14 DISQUALIFICATION No designated employee shall make, participate in making, or in any way attempt to use his or her official position to influence the making of any governmental decision which he or she knows or has reason to know will have a reasonably foreseeable material financial effect, distinguishable from its effect on the public generally, on the official or a member of his or her immediate family or on: (A) Any business entity in which the designated employee has a direct or indirect investment worth $2,000 or more; (B) Any real property in which the designated employee has a direct or indirect interest worth $2,000 or more; (C) Any source of income, other than gifts and other than loans by a commercial lending institution in the regular course of business on terms available to the public without regard to official status, aggregating $500 or more in value provided to, received by or promised to the designated employee within 12 months prior to the time when the decision is made; (D) Any business entity in which the designated employee is a director, officer, partner, trustee, employee, or holds any position of management; or (E) Any donor of, or any intermediary or agent for a donor of, a gift or gifts aggregating to the maximum amount established by law, or more, in value provided to, received by, or promised to the designated employee within 12 months prior to the time when the decision is made. 6.15 LEGALLY REQUIRED PARTICIPATION No designated public official shall be prevented from making or participating in the making of any decision to the extent his or her participation is legally required for the decision to be made. The fact that the vote of a designated public official who is on a voting 6-12 body is needed to break a tie does not make his or her participation legally required for purposes of this section. 6.16 DISQUALIFICATION OF STATE OFFICERS AND EMPLOYEES In addition to the general disqualification provisions of Section 6.14, no state administrative official shall make, participate in making, or use his or her official position to influence any governmental decision directly relating to any contract where the state administrative official knows or has reason to know that any party to the contract is a person with whom the state administrative official, or any member of his or her immediate family has, within 12 months prior to the time when the official action is to be taken: (A) Engaged in a business transaction or transactions on terms not available to members of the public, regarding any investment or interest in real property; or (B) Engaged in a business transaction or transactions on terms not available to members of the public regarding the rendering of goods or services totaling in value $1000 or more. 6.17 DISCLOSURE OF DISQUALIFYING INTEREST When a designated public official determines that he or she should not make a governmental decision because he or she has a disqualifying interest in it, the determination not to act may be accompanied by disclosure of the disqualifying interest. 6.18 ASSISTANCE OF THE COMMISSION AND COUNSEL Any designated employee who is unsure of his or her duties under this code may request assistance from the Fair Political Practices Commission pursuant to Government Code Section 83114 and 2 CCR Sections 18329 and 18329.5 or from the attorney for his or her agency, provided that nothing in this section requires the attorney for the agency to issue any formal or informal opinion. 6.19 VIOLATIONS This code has the force and effect of law. Designated employees violating any provision of this code are subject to the administrative, criminal, and civil sanctions provided in the Political Reform Act, Government Code Sections 81000 – 91015. In addition, a decision in relation to which a violation of the disqualification provisions of this code or of Government Code Section 87100 or 87450 has occurred may be set aside as void pursuant to Government Code Section 91003. 6-13 6.20 PROHIBITED TRANSACTIONS Members of the Board of Directors and Designated Employees shall comply with the Prohibited Transactions policy, annexed hereto as Exhibit A, pursuant to California Government Code Sections 1090, et seq. 6.21 INCOMPATIBLE ACTIVITIES Members of the Board of Directors, District officers, and all other District employees shall comply with the Incompatible Activities policy, annexed hereto as Exhibit B, pursuant to California Government Code Sections 1126, et seq. 6-14 APPENDIX OTAY WATER DISTRICT CONFLICT OF INTEREST CODE DESIGNATED POSITIONS DESIGNATED EMPLOYEES’ TITLE OR FUNCTION__ DISCLOSURE CATEGORIES ASSIGNED General Manager 1, 2, 3, 4, 5, 6 District Secretary 6 Assistant Chief of Finance 1, 2, 5, 6, 7 Chief of Administrative Services 1, 2, 3, 4, 5, 6, 7 Chief Financial Officer 1, 2, 5, 6, 7 Chief of Engineering 1, 2, 3, 4, 6, 7 Chief of Water Operations 1, 2, 3, 4, 6, 7 Associate Civil Engineer 1, 2, 3, 4, 7 Communications Officer 6 Customer Service Manager 2, 5, 7 Environmental Compliance Specialist 1, 2, 3, 4, 7 Engineering Manager 1, 2, 3, 4, 7 Field Services Manager 1, 2, 3, 4, 7 Finance Manager 2, 5, 7 GIS Manager 3, 6, 7 Human Resources Manager 3, 6 IT Manager 3, 6, 7 Network Engineer 3, 6, 7 Purchasing and Facilities Manager 2, 6 6-15 Safety and Security Specialist 1, 2, 3, 4, 6 Senior Procurement and Contracting Analyst 6 Senior Civil Engineer 1, 2, 3, 4, 7 System Operations Manager 1, 2, 3, 4, 7 Utility Services Manager 1, 2, 3, 4, 7 Consultant/New Positions9 1, 2, 3, 4, 5, 6 District Officials who manage public investments, as defined by 2 Cal. Code of Regs. § 18701 (b) are not subject to the District's Conflict of Interest Code except with respect to its disqualification provisions. They must file disclosure statements under Government Code § 87200 et seq. [2 CCR § 18730(b)(3)] These positions are listed above for informational purposes only. Individuals holding the positions listed below are officials who manage public investments and who must file their disclosure statements under Government Code Section 87200: Members of the Board of Directors General Manager Chief Financial Officer Asst. Chief Financial Officer Financial Consultants Individuals holding the above-listed positions may contact the Fair Political Practices Commission for assistance or written advice regarding their filing obligations if they believe that their position has been categorized incorrectly. The Fair Political Practices Commission makes the final determination whether a position is covered by Government Code Section 87200. 9 Consultants/New Positions are included in the list of designated positions and shall disclose pursuant to the broadest disclosure category in the code, subject to the following limitation: The General Manager may determine in writing that a particular consultant or new position, although a “designated position,” is hired to perform a range of duties that is limited in scope and, thus, not required to fully comply with the disclosure requirements in this section. Such written determination shall include a description of the consultant’s or new position’s duties and, based upon that description, a statement of the extent of the disclosure requirements. The written determination is a public record and shall be retained for public inspection in the same manner and location as this Conflict of Interest Code (Gov. Code section 81008) Consultants are required to file disclosure statements where they: (a) conduct research and arrive at conclusions with respect to rendition of information, advice, recommendation or counsel independent of control and direction of the agency or any agency official other than normal contract monitoring; and (b) possess no authority with respect to any agency decision beyond the rendition of information, advice, recommendation or counsel. 6-16 Government Code Section 87200 requires that individuals holding the above-listed positions shall, each year at a time specified by commission regulations, file a statement disclosing their investments, their interests in real property and their income during the period since the previous statement filed. The statement shall include any investments and interest in real property held at any time during the period covered by the statement, whether or not they are still held at the time of filing. 6-17 APPENDIX, CONTINUED DISCLOSURE CATEGORIES The disclosure categories listed below identify the types of investments, business entities, sources of income, or real property which the designated employee must disclose for each disclosure category to which he or she is assigned. Category 1: All investments and business positions in, and sources of income from, all business entities that do business or own real property in the District, plan to do business or own real property in the District within the next year or have done business or owned real property in the District within the past two years. Category 2: All interests in real property which are located in whole or in part within, or not more than two (2) miles outside the boundaries of the District. Category 3: All investments and business positions in, and sources of income from, business entities subject to the regulatory, permit or licensing authority of the Designated Employee’s Department, will be subject to such authority within the next year or have been subject to such authority within the past two years. Category 4: All investments, business positions, and sources of income from, business entities that are engaged in land development, construction or the acquisition or sale of real property in the District, plan to engage in such activities in the District within the next year or have engaged in such activities in the District within the past two years. Category 5: All investments and business positions in, and sources of income from, business entities that are banking, savings and loan or other financial institutions. Category 6: All investments and business positions in, and sources of income from, business entities that provide services, supplies, materials, machinery, or equipment of a type purchased, leased, used, or administered by the District. Category 7: All investments and business positions in, and sources of income from, business entities that provide services, supplies, materials, machinery, or equipment of a type purchased, leased, used, or administered by the Designated Employee’s Department. 6-18 EXHIBIT A Prohibited Transactions for Specified Personnel Members of the Board of Directors (“Members”) shall comply with this Prohibited Transactions policy pursuant to California Government Code §§ 1090, et seq. Members shall not be financially interested in any contract made by them in their official capacity, or by any body or board of which they are members. Members shall not be purchasers at any sale or vendors at any purchase made by them in their official capacity. Members shall not be deemed to be interested in a contract entered into by a body or board of which they are members if the Member has only a remote interest in the contract and if the fact of that interest is disclosed to the body or board of which the Member is a member and noted in its official records, and thereafter the body or board authorizes, approves, or ratifies the contract in good faith by a vote of its membership sufficient for the purpose without counting the vote or votes of the Board of Directors member with the remote interest. “Remote interest” shall be defined as in California Government Code § 1091(b). Members shall not be considered to be financially interested in a contract if their interest is including, but not limited to, any of the following (Government Code § 1091.5): 1. That of an officer in being reimbursed for his/her actual and necessary expenses incurred in the performance of an official duty; 2. That of a recipient of public services generally provided by the public body or board of which he/she is a member, on the same terms and conditions as if he or she were not a member of the board; 3. That of a landlord or tenant of the contracting party if such contracting party is the federal government or any federal department or agency, this state or an adjoining state, any department or agency of this state or an adjoining state, any county or city of this state or an adjoining state, or an public corporation or special, judicial or other public district of this state or an adjoining state unless the subject matter of such contract is the property in which such officer or employee has such interest as landlord or tenant in which even his/her interest shall be deemed a remote interest within the meaning of, and subject to, the provisions of Government Code 1091; 6-19 4. That of a spouse of an officer or employee of a public agency if his/her spouse’s employment or office-holding has existed for at least one year prior to his/her election or appointment; 5. That of a non-salaried member of a nonprofit corporation, provided that such interest is disclosed to the board at the time of the first consideration of the contract, and provided further that such interest is noted in its official records; 6. That of a non-compensated officer of a nonprofit, tax-exempt corporation, which, as one of its primary purposes, supports the functions of the board or to which the board has legal obligation to give particular consideration, and provided further that such interest is noted in its official records; For purposes of this paragraph, an officer is “noncompensated” even though he or she receives reimbursement from the nonprofit, tax-exempt corporation for necessary travel and other actual expenses incurred in performing the duties of his or her office. 7. That of compensation for employment with a governmental agency, other than the governmental agency that employs the officer or employee, provided that the interest is disclosed to the board at the time of consideration of the contract, and provided further that the interest is noted in its official records; 8. That of an attorney of the contracting party of that of an owner, officer, employee or agent of a firm which renders, or has rendered, service to the contracting party in the capacity of stockbroker, insurance agent, insurance broker, real estate agent, or real estate broker if these individuals have not received and will not receive remuneration, consideration, or a commission as a result of the contract and if these individuals have an ownership interest of less than 10 percent in the law practice or firm, stock brokerage firm, insurance firm or real estate firm. In addition, Members shall not be deemed to be interested in a contract made pursuant to competitive bidding under a procedure established by law if their sole interest is that of an officer, director, or employee of a bank or savings and loan association with which a party to the contract has the relationship of borrower or depositor, debtor or creditor (Government Code § 1091.5). Authority: California Government Code §§ 1090, et seq. 6-20 EXHIBIT B Incompatible Activities Policy District officers, members of the Board of Directors, and all other District employees (collectively, “district personnel”) shall comply with this Incompatible Activities policy pursuant to California Government Code §§ 1125, et seq. District personnel shall not engage in any employment, activity, or enterprise for compensation which is inconsistent, incompatible, in conflict with, or inimical to his or her duties as a member of the Board of Directors, or with the duties, functions, or responsibilities of his or her appointing power or the agency by which he or she is employed. The outside employment, activity, or enterprise of district personnel is prohibited if it: (1) involves the use for private gain or advantage of his or her local District time, facilities, equipment and supplies; or the badge, uniform, prestige, or influence of his or her local District office or employment or, (2) involves receipt or acceptance by district personnel of any money or other consideration from anyone other than the District for the performance of an act which district personnel, if not performing such act, would be required or expected to render in the regular course or hours of their local District employment or as a part of their duties as a local District officer or employee or, (3) involves the time demands as would render performance of his or her duties as a local district personnel member less efficient. Nothing in this policy shall be interpreted to prohibit any outside employment, activity, counsel, or enterprise on behalf of another governmental entity, subject to common law and professional conflict of interest rules. Copies of this regulation shall be posted in prominent places at the District Office. District personnel who violate this regulation may be subject to discipline as set forth in the applicable Code of Ordinances and Policies. Board of Directors members who violate this section may be subject to censure. Disciplinary appeals by district personnel shall be handled pursuant to applicable Code of Ordinances and Policies. Authority: California Government Code §§ 1125, et seq. 1 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 7, 2020 PROJECT: Various DIV. NO. ALL SUBMITTED BY: Michael Kerr, Information Technology Manager APPROVED BY: Adolfo Segura, Chief of Administrative Services Jose Martinez, General Manager SUBJECT: FY20 YEAR-END REPORT FOR THE DISTRICT’S FY19-22 STRATEGIC PLAN GENERAL MANAGER’S RECOMMENDATION: No recommendation. This is an informational item only. COMMITTEE ACTION: Please see “Attachment A”. PURPOSE: To provide a year-end report of the District’s FY19-22 Strategic Performance Plan for FY20. ANALYSIS: Summary The current Otay Water District Strategic Plan is a four-year plan ranging from the start of FY19 through the end of FY22. This report details the year-end results for the second year of our four-year plan. Objectives – Target 90% Strategic Plan objectives are designed to ensure the District is executing mission developed strategies and making appropriate changes necessary to guide the agency, meet new challenges, and positively adapt to change. FY20 year-end results are below target at 82%, with 37 of 45 active items completed or on schedule; eight (8) objectives are on hold. AGENDA ITEM 7 Objectives on Hold (8): CUSTOMER Strategy #1: Enhance and build awareness and engagement among the District’s customers and stakeholders, and within the San Diego Region of the District’s strategies, policies, projects, programs, and legislative/regulatory issues. Objective: Ensure consistency of branding and representation across the District, using consistent logos, colors, messaging, communications tools, and other collaterals through enhancement of internal and external marketing materials. During the fourth quarter, COVID-19 response and planning initiatives were a priority for staff. Due to budget cuts, the objective was placed on hold, and assuming budget availability, this objective will resume in FY22. Staff will continue to ensure that the District is using essential branding consistently, wherever possible. FINANCIAL Strategy #3: Enhancement of business systems. Objective: Evaluate enhancements to, or replacement, of the rate model program. This objective was placed on hold in the second quarter because staff added a Sewer Cost of Service and Capacity Fee Study as strategic objectives. The Sewer Cost of Service and Capacity Fee Studies were 0 5 10 15 20 25 30 35 40 45 37 0 8 7 On Schedule/Completed Behind On Hold Not Started 37 of 45 Active Objectives are On Target (82%) 3 unplanned projects that utilized the resources needed to move forward with evaluating the rate model program. As a result, the rate model program strategic objective is on hold. Staff will resume this project once both added objectives are completed. Objective: Re-evaluate on-premise and cloud-based payroll solutions. Staff has identified and evaluated three (3) new payroll systems: Paycom, Ceridian, and Complete. As of the third quarter, Paycom was the only solution that stated they could meet the District’s requirements, however, they’ve yet to confirm their solution functions. Due to other priorities driven by COVID-19, this objective has been placed on hold. Objective: Evaluate the Capacity and New Water Supply Fees, including an update of applicable costs, and, if possible, recommend a fee structure that is more efficient and effective than the current structure. Staff completed the Capacity Fee Study, which was presented to the Finance & Administration Committee in March. Due to the Capacity Fee Moratorium put in place in response to COVID-19, this objective has been placed on hold and will resume after October 31, 2020. The last steps in this objective were to meet with impacted parties and implement the study results. As a result of COVID-19, on April 1, 2020, the Board placed a 90-day moratorium on capacity fee changes and discussions. At the July Board meeting, the capacity fee moratorium was extended an additional 120 days to October 31. Staff will bring the Capacity Fee study back to the October Finance & Administration Committee and November Board meetings, and anticipates the new capacity fees will be effective November 1, 2020. Strategy #4: Enhancement of the Asset Management (AM) and Capital Improvement Programs (CIP). Objective: Financial activity-based cost cross-training. Staff has identified three (3) key activity-based cost measures and issued a report to the Operations department during the first quarter. However, due to COVID-19 related staff rotations, this objective has been placed on hold and will resume in FY21. INTERNAL BUSINESS PROCESSES Strategy #7: Enhancement of maintenance and program standards. Objective: Evaluate the efficiency and effectiveness of the District’s valve exercise preventative maintenance, including proposed recommendations. 4 This objective has been placed on hold until the Utility Services Manager position is filled. This objective will resume during the third quarter of FY21. Objective: Evaluate the impacts as a result of recent and upcoming regulatory changes including, but not limited to, Air Pollution Control District (APCD), State Water Resource Control Board (SWRCB), and Occupational Safety and Health Administration (OSHA), etc. This objective has been placed on hold until the Utility Services Manager position is filled. This objective will resume during the second quarter of FY21. LEARNING & GROWTH Strategy #1: Enhance leadership and employee training programs, and knowledge transfer process. Objective: Continue development of leadership and District-wide training programs. Staff met during the third quarter to provide ideas for the District’s training programs. Options were considered and ideas were presented to the General Manager. This objective was placed on hold in the third quarter and will remain on hold during the fourth quarter due to COVID-19 and budgetary constraints. Staff will continue to work on options in FY21 with an emphasis on evaluating online or remote offerings. Key Performance Indicators (KPI’s) – Target 75% KPI’s are designed to track the District’s day-to-day performance. These items measure the effectiveness and efficiency of essential operational services. The District’s overall goal of 75% is considered “on target”. For FY20, year-end results are above target at 90%, with 38 of 42 items achieving the desired level or better. KPI’s are based on established AWWA performance benchmarks, water agency standards, and historical trends. Seven (7) measures are reported at year’s end: •Water Debt Coverage •Sewer Debt Coverage •Reserve Level •Accounts Per FTE •Leak Detection Program •Injury Incident Rate •Enterprise Technology Services 5 KPI’s Not on Target (4): CIP Project Expenditures vs. Budget Target: 95% of budget but not to exceed 100% annually Year-to-date CIP expenditures amounted to $15,032,000 vs. the budgeted amount of $17,222,000. This measure was 7.7% below the established target of 95% due to known project delays. Construction Change Order Incidence Target: No more than 5% annually Life-to-date (LTD) expenditures for active FY20 projects amounted to $1,850,904 vs. the CIP budgeted amount of $33,014,302, resulting in an LTD change order incidence rate of 5.6%. This measure was 0.6% above the established target of 5% for the fiscal year. However, the FY20 year-to-date (YTD) change order incidence rate was limited to 4.5%. There was a total of 16 change orders issued on all active projects in FY20. Sewer Overflow Rate (AWWA) Target & AWWA: Zero (0) overflows per quarter There were zero (0) overflows in the fourth quarter; however, the year-to-date target was not met due to one (1) sewer overflow in the second quarter resulting from vandalism. The collection system in this area was televised and flushed to assure all debris was located and removed. 0 5 10 15 20 25 30 35 40 38 4 On Target Not on Target 38 of 42 Key Performance Indicators are On Target (90%) 6 Emergency Facility Power Testing Target: Test 100% of all facilities scheduled per quarter to have all emergency facilities tested annually (there are 36 powered ready facilities) Year-to-date, 26 out of 36 sites were tested. Due to COVID-19, all site testing was suspended in the fourth quarter. Testing will resume in September 2020. Next Steps Staff will continue to execute the plan’s objectives and key performance indicators and track emerging trends. Committee Reports – Slideshow The Strategic Plan results are presented to both the Finance & Administration, and the Engineering, Operations, & Water Resources Committee with a specific focus on the most relevant information for each Committee (see “Attachment B”). Strategic Plan is available on the Board VPN All of the Strategic Plan results and associated details are provided in a real-time, interactive web-based application available to the Board via secured remote access, VPN. The District Secretary can facilitate any password or access issues. FISCAL IMPACT:Joe Beachem, Chief Financial Officer Informational item only; no fiscal impact. STRATEGIC GOAL: Strategic Plan and Performance Measure reporting is a critical element in providing performance reporting to the Board and staff. LEGAL IMPACT: None. ATTACHMENTS: Attachment A – Committee Action Report Attachment B – PowerPoint Presentation 7 ATTACHMENT A SUBJECT/PROJECT: FY20 YEAR-END REPORT FOR THE DISTRICT’S FY19-22 STRATEGIC PLAN COMMITTEE ACTION: The Engineering, Operations & Water Resources and Finance & Administration Committees reviewed this item at a meeting held on September 21 and 22, 2020, respectively. The Committees support presentation to the full Board for their consideration. NOTE: The “Committee Action” is written in anticipation of the Committee moving the item forward for Board approval. This report will be sent to the Board as a committee approved item or modified to reflect any discussion or changes as directed from the committee prior to presentation to the full Board. FY20 Year-End Report Otay Water District FY19-22 Strategic Plan Attachment B Contoso Pharmaceuticals Employee growth/ Retention Financial Results and Growth Increase Customer Satisfaction/Engagement Improve Operational Efficiency Customer Financial Internal Business Processes Learning & Growth 2 82% 37 Objectives TRENDS ON TARGET/COMPLETED OVERALL TARGET 90% TOTAL OBJECTIVES 52 NOT ON TARGET OBJECTIVES ON HOLD 0% 0 Objectives 18% 8 Objectives 75% 85% 95% FY16 FY17 FY18 FY19 FY20 NOT STARTED 7 RESULT TARGET ACTIVE LEARNING AND GROWTH CUSTOMER FINANCIAL INTERNAL BUSINESS PROCESSES 45 37/45 = 82%8/45 = 18% 3 Enhance and build awareness and engagement among the District’s customers and stakeholders and within the San Diego Region of the District’s strategies, policies, projects, programs, and legislative/regulatory issues Continue implementation of and enhance the District’s community and business outreach, media, and government relations programs Ensure consistency of branding and representation across the District, using consistent logos, colors, messaging, communications tools, and other collaterals through enhancement of internal and external marketing materials* Evaluate and enhance the District’s water conservation programs CUSTOMER | 4 ON TARGET NOT ON TARGET ON HOLD COMPLETED NOT STARTED Assess and enhance communications tools and increase online presence and social media exposure Assess communication tools (social media presence) *Objective placed on hold due to COVID-19 C01. C02. 4 Integrated resource planning and facility optimization Recycled water long-term business plan South District Potable Water Supply Alternatives to San Diego County Water Authority (SDCWA) Pipeline 4 Supply Interruption (catastrophic event) Treatment Plant long-term business plan (sewer portion) Evaluation of key system alternatives and financial impact Conduct desalination (Rosarito) financial analysis In support of the Engineering Department, conduct recycled water and sewer business financial analysis F01. F02. FINANCIAL | 19 ON TARGET NOT ON TARGET ON HOLD COMPLETED NOT STARTED 5 Enhancement of business systems Enterprise Resource Planning (ERP)/Customer Information System (CIS)/Customer Relationship Management (CRM) validation and replacement evaluation (ERP –FY21 Q1) Evaluate, and if beneficial, implement cloud-based payroll service Evaluate enhancements to, or replacement, of the rate model program* Implement Paperless Account Payable (AP) solution Re-evaluate prior payroll solutions and identify any new cloud-based payroll solutions* Complete a sewer cost of service study and recommend a rate structure that will provide for more stable sewer revenues Evaluate the Capacity and New Water Supply Fees, including an update of applicable costs, and, if possible, recommend a fee structure that is more efficient and effective than the current structure *Objective has been placed on hold due to COVID-19. F03. FINANCIAL | 19 (cont’d) ON TARGET NOT ON TARGET ON HOLD COMPLETED NOT STARTED 6 Enhancement of the Asset Management (AM) and Capital Improvement Programs (CIP) Enhancement of the framework for systematic development, validation, and implementation of new CIPs Enhancements of the AM Program Financial activity-based cost cross-training In support of the Engineering Department, enhance financial impact forecasting and analysis of future CIPs Develop alternative Public Employees Retirement System (PERS) financing strategy to fund ahead of PERS schedule Optimize funding and liability schedule FINANCIAL | 19 (cont’d) Negotiate and implement a new labor agreement and optimize employee benefit programs Negotiate and implement new labor agreement Review Deferred Compensation Program for reduced fees and streamlined approach and ensure offerings are fully utilized F04. F05. F06. ON TARGET NOT ON TARGET ON HOLD COMPLETED NOT STARTED7 Optimize meter activity operations Evaluation of Advanced Metering Infrastructure (AMI) technology (FY21 Q1) Explore web-based options for meter reading and backflow test entry Optimize Global Positioning System (GPS) fleet assignment and routing operation Enhance customer experience (collaboration between Customer Service and Communications) Customer electronic communication and outreach Enterprise Resource Planning (ERP)/Customer Information System (CIS)/ Customer Relationship Management (CRM) validation and replacement evaluation (CIS/CRM –FY21 Q1) I01. I02. INTERNAL BUSINESS PROCESSES | 27 ON TARGET NOT ON TARGET ON HOLD COMPLETED NOT STARTED8 Evaluate and leverage the use of available Human Resources self-service and capital management technology solutions Evaluate on-boarding programs and implement, if determined necessary Implement Human Resource Information System (HRIS) in coordination with payroll conversion Pilot cloud-based human capital performance management system and implement, if determined necessary (FY21 Q1) Maintain a reliable, scalable, secure, and high-performing technology infrastructure to support current and future service needs Adopt National Institute of Standards and Technology (NIST) cyber security framework and enhance disaster recovery planning Advance business processes and operational efficiencies through effective implementation of information technology Create framework to evaluate cost efficiency of new technology services and cloud vs. on-premise selection Deploy next generation storage services and communication architecture I04. INTERNAL BUSINESS PROCESSES | 27 (cont’d) I03. ON TARGET NOT ON TARGET ON HOLD COMPLETED NOT STARTED9 Enhance SCADA system services via SCADA roadmap project Prioritize fourteen strategic project/initiatives, recently developed Enhancement of enterprise geographic data Deploy ArcGIS Pro for 3D analysis (FY21 Q1) Migrate Geographic Information System (GIS) data structure from geometric network to utility dashboard (FY21 Q1) Evaluate the use of Drone2Map technology for asset, field inspections, and condition assessment Standardization of District asset data and collection process I05. I06. INTERNAL BUSINESS PROCESSES | 27 (cont’d) ON TARGET NOT ON TARGET ON HOLD COMPLETED NOT STARTED 10 Enhancement of maintenance and program standards Analyze electric energy-saving programs as they become available Evaluate the effectiveness of various methods to reduce nitrification events Evaluate the efficiency and effectiveness of the District’s valve exercise preventative maintenance including proposed recommendations Evaluate the impacts as a result of recent and upcoming regulatory changes including, but not limited to, Air Pollution Control District (APCD), State Water Resource Control Board (SWRCB), and Occupational Safety and Health Administration (OSHA), etc. Establish an access and defensible space vegetation mitigation program with maintenance schedules for District remote facilities, access roads, and off-road appurtenances Enhancement of contracting and facility services Enhance Customer and Public Service security in public lobby areas Evaluate feasibility of incorporating electric and hybrid vehicles into District fleet Streamline contract and purchase order (contract) management and lifecycle I07. I08. INTERNAL BUSINESS PROCESSES | 27 (cont’d) ON TARGET NOT ON TARGET ON HOLD COMPLETED NOT STARTED11 Enhancement of the Confined Space Program Automate confined space regulatory and work forms (electronic conversion), add confined space data layer in the District’s enterprise Geographic Information System (GIS), and use data to electronically automate the District’s confined space inventory INTERNAL BUSINESS PROCESSES | 27 (cont’d) Optimize District’s Hazardous Waste Operations and Emergency Response (HAZWOPER) Confined Space Rescue Team Certify at Industry Level and under the Incident Command System, streamline chlorine gas and confined space rescue training, operations, response and areas of responsibility and convert to inventory lists and equipment logs to electronic form I09. I10. ON TARGET NOT ON TARGET ON HOLD COMPLETED NOT STARTED 12 Enhance Leadership and employee training programs, and knowledge transfer process Continue development of leadership and District-wide training programs* Review and enhance knowledge transfer process to ensure retention of District knowledge (FY22 Q1) LEARNING AND GROWTH | 2 *Objective has been placed on hold due to COVID-19. L01. ON TARGET NOT ON TARGET ON HOLD COMPLETED NOT STARTED13 50% 60% 70% 80% 90% 100% FY16 FY17 FY18 FY19 FY20 LEARNING AND GROWTH CUSTOMERTRENDS ON TARGET KEY PERFORMANCE INDICATORS FINANCIAL OVERALL TARGET INTERNAL BUSINESS PROCESSES 75% TOTAL KPIs 42 REPORTED QUARTERLY 35 REPORTED ANNUALLY 7 10% 4 KPIs NOT ON TARGET 90% 38 KPIs RESULT TARGET 4/42 = 10%38/42= 90% 14 ANSWER RATE Target: 97% average answer rate per quarter annually TARGET Calculation: Number of all calls answered/Number of all calls received Customer Service staff member assisting a customer 98.00% 98.38%98.43% 96% 97% 97% 98% 98% 99% 99% 2018 2019 2020 YE A R -EN D R E S U L T 15 4.20 3.55 3.51 0 1 2 3 4 5 6 7 8 9 10 2018 2019 2020 YE A R -EN D R E S U L T TECHNICAL QUALITY COMPLAINT (AWWA) (Customer Service) Target & AWWA: No more than 7.1 complaints per 1000 customer accounts annually 75th Percentile for population served between 100,001-500,000 (combined utilities) Calculation: Number of technical quality complaints per year/Number of active customer accounts per reporting period Disinfection Tech examining potable equipment TARGET & AWWA BENCHMARK 16 POTABLE WATER COMPLIANCE RATE (AWWA) (Water Operations) Target & AWWA: 100% of all health-related drinking water standards per quarter annually 75th Percentile for population served between 100,001-500,000 (water) Calculation: Number of days the primary health regulations are met/Number of days in the reporting period District staff member refilling his reusable water bottle 100%100%100% 90% 95% 100% 2018 2019 2020 YE A R -EN D R E S U L T TARGET & AWWA BENCHMARK 17 CIP PROJECT EXPENDITURES VS. BUDGET Target: 95% of budget but not to exceed 100% annually Calculation: Actual Expenditures/Annual budget 870-2 Pump Station Emergency Generator 97.4% 104.8% 87.3% 0% 20% 40% 60% 80% 100% 120% 2018 2019 2020 YE A R -EN D R E S U L T TARGET 18 CONSTRUCTION CHANGE ORDER INCIDENCE Target: No more than 5% annually Calculation: Total cost of Change Orders (not including allowances)/Total original construction contract amount (not including allowances) Dictionary Hill Water Line Replacement Project 1.2% 2.0% 4.5% 1.3% 3.1% 5.6% 0% 1% 2% 3% 4% 5% 6% 2018 2019 2020 YTD LTD Target YE A R -EN D R E S U L T TARGET 19 O&M COST PER ACCOUNT Target: Less than $552.00 per account annually (based on Operating budget) Calculation: Total operations O&M costs/Number of accounts District staff testing a large water meter to ensure accuracy $549.00 $548.00 $545.00 $530 $535 $540 $545 $550 $555 $560 $565 $570 $575 2018 2019 2020 YE A R -EN D R E S U L T TARGET 20 BILLING ACCURACY (Customer Service) Target: 99.8% billing accuracy per quarter annually Calculation: Number of correct bills/Total number of bills during the reporting period Customer Service staff member assisting a customer with their bill 99.98%99.94%99.99% 95% 96% 97% 98% 99% 100% 101% 2018 2019 2020 TARGET YE A R -EN D R E S U L T 21 100% 129% 72% 50% 60% 70% 80% 90% 100% 110% 120% 130% 2018 2019 2020 YE A R -EN D R E S U L T OVERTIME PERCENTAGE Target: Less than 100% of budgeted overtime per quarter annually (based on Operating budget and historical trends; FY20 Overtime budget is $185,500) Calculation: Actual overtime costs (including comp time)/Budgeted overtime costs Utility Maintenance work crew conducting street repairs TARGET 22 SEWER RATE RANKING Calculation: Ranking for the average monthly sewer bill District Staff holding a CCTV camera, which are used to inspect the District’s collection system 6 3 5 0 5 10 15 20 25 2018 2019 2020 YE A R -EN D R E S U L T TARGET Target: Bottom 50th percentile for the 28 sewer service providers in San Diego (Otay ranks 5th out of 28 sewer service providers) 23 WATER RATE RANKING Calculation: Ranking for the average monthly water bill among CWA member agencies Target: Bottom 50th percentile for the 22 member agencies in San Diego (Otay ranks 5th out of 22 member agencies) 640-1 and 640-2 Reservoirs 3 3 5 0 5 10 15 20 2018 2019 2020 YE A R -EN D R E S U L T TARGET 24 200% 165% 188% 100% 120% 140% 160% 180% 200% 220% 2018 2019 2020 YE A R -EN D R E S U L T WATER DEBT COVERAGE RATIO Target: 150% excluding growth revenue annually Calculation: Qualified net operating revenues/Debt service requirements TARGET 25 *Annual measure 1241% 50% 250% 450% 650% 850% 1050% 1250% 1450% 2020 YE A R -EN D R E S U L T SEWER DEBT COVERAGE RATIO Target: 150% excluding growth revenue annually Calculation: Qualified net operating revenues/Debt service requirements TARGET 26 *Annual measure RESERVE LEVEL 100%100%100% 75% 80% 85% 90% 95% 100% 2018 2019 2020 YE A R -EN D R E S U L T Target: No less than 85% annually (there are 7 reserve funds) Calculation: Number of reserve funds that meet or exceed fund target levels/Total number of reserve funds TARGET 27 *Annual measure ACCOUNTS PER FULL-TIME EMPLOYEE (FTE) Target: 408 accounts per FTE annually Calculation: Potable + Recycled + Sewer Accounts/Number of FTEs District Staff performing meter maintenance 426 410 410 400 405 410 415 420 425 430 435 440 445 450 2018 2019 2020 YE A R -EN D R E S U L T TARGET 28 *Annual measure PERCENT OF CUSTOMERS PAYING BILLS ELECTRONICALLY Target: No less than 75% per quarter annually Calculation: Number of customers paying bills electronically/Total number of customers District customer making an online bill payment 77.05%78.67%80.47% 50% 60% 70% 80% 90% 100% 2018 2019 2020 YE A R -EN D R E S U L T TARGET 29 3.3% 3.6%3.8% 0% 1% 2% 3% 4% 5% 6% 2018 2019 2020 YE A R -EN D R E S U L T DISTRIBUTION SYSTEM LOSS TARGET Target: Less than 5%of unaccounted water annually Calculation: Volume purchased from CWA, City of San Diego & RWCTP Production –volume sold to customers + volume used by District/Volume purchased from CWA, City of San Diego & RWCTP Production 30 PLANNED POTABLE WATER MAINTENANCE RATIO IN $ Target: 66% of all labor costs spent on preventative maintenance per quarter annually Calculation: Total Planned Maintenance Cost/Total Maintenance Cost District staff connecting a customer’s meter after pulling a new copper service 72% 74% 77% 50% 60% 70% 80% 2018 2019 2020 YE A R -EN D R E S U L T TARGET 31 74%74% 70% 50% 60% 70% 80% 2018 2019 2020 YE A R -EN D R E S U L T PLANNED RECYCLED WATER MAINTENANCE RATIO IN $ Target: 70% of all labor costs spent on preventative maintenance per quarter annually Calculation: Total Planned Maintenance Cost/Total Maintenance Cost TARGET 32 82%84% 92% 50% 60% 70% 80% 90% 100% 2018 2019 2020 YE A R -EN D R E S U L T PLANNED WASTEWATER MAINTENANCE RATIO IN $ Target: 77% of all labor costs spent on preventative maintenance per quarter annually TARGET Calculation: Total Planned Maintenance Cost/Total Maintenance Cost Aerial view of the Ralph W. Chapman Recycling Plant 33 DIRECT COST OF TREATMENT PER MGD Target: No more than $1,050 per MGD spent on wastewater treatment annually Calculation: Total O&M costs directly attributable to sewer treatment/Total volume in MG for one quarter District staff checking the clarity and particulates of a final effluent sample $1,165.82 $1,071.66 $996.29 $0 $200 $400 $600 $800 $1,000 $1,200 2018 2019 2020 YE A R -EN D R E S U L T TARGET 34 LEAK DETECTION PROGRAM Target: 20% of system surveyed for leaks annually 20%20%20% 0% 10% 20% 30% 2018 2019 2020 YE A R -EN D R E S U L T Calculation: Miles of potable pipe surveyed/Total miles of potable pipe The District’s contractor lowering a See Snake to begin assessment on a 14” main above Sweetwater Lake TARGET 35 *Annual measure INJURY INCIDENT RATE Target: No more than 4.1 injury incidents per 200,000 hours worked annually (based on Department of Labor average for similar-size water agencies) Calculation: Number of injuries & illnesses x 200,000/Number of employees x 2,000 hours worked 4.4 4.4 2.9 0 1 2 3 4 5 6 7 8 9 10 2018 2019 2020 YE A R -EN D R E S U L T TARGET 36 *Annual measure ENTERPRISE TECHNOLOGY SERVICES AVAILABILITY Target: No less than 99.5% availability 99.5%99.5%99.5% 90% 91% 92% 93% 94% 95% 96% 97% 98% 99% 100% 2018 2019 2020 YE A R -EN D R E S U L T Calculation: 2 days/year (1 day/19 hours) TARGET 37 *Annual measure 100.00%99.96%100.00% 95% 96% 97% 98% 99% 100% 2018 2019 2020 YE A R -EN D R E S U L T MARK-OUT ACCURACY Target: 100% mark-out accuracy per quarter annually TARGET Calculation: Number of mark-outs performed without an at-fault hit, which is damage to a District facility that results from a missing or erroneous mark-out/Total number of mark-outs District staff conducting a mark-out 38 PROJECT CLOSEOUT TIME Target: 45-day average annually Calculation: Number of days between NOSC and NOC for all construction projects within the quarter/ Number of construction projects within the quarter Board of Directors tour at 870 Pump Station 70.3 37.0 37.3 0 10 20 30 40 50 60 70 2018 2019 2020 YE A R -EN D R E S U L T TARGET 39 ANNUAL RECYCLED WATER SITE INSPECTIONS Target: 100% of recycled sites inspected annually (147 recycled water sites scheduled for FY20) Calculation: Cumulative percentage of recycled water sites inspected per quarter of those required by DEH 100.00%100.00%100.00% 95% 96% 97% 98% 99% 100% 2018 2019 2020 YE A R -EN D R E S U L T TARGET 40 District staff conducting a recycled water inspection at Veterans Elementary in Chula Vista RECYCLED WATER SHUTDOWN TESTING Target: 90% of recycled site shutdown tests performed annually (28 recycled water sites scheduled for shutdown in FY20) 86% 100% 96% 75% 80% 85% 90% 95% 100% 2018 2019 2020 YE A R -EN D R E S U L T TARGET Calculation: Cumulative percentage of recycled site shutdown tests performed per year compared to those scheduled 41 129% 188% 50% 70% 90% 110% 130% 150% 170% 190% 2019 2020 YE A R -EN D R E S U L T EASEMENT EVALUATION AND FIELD INSPECTION Target: 100% assigned easements, evaluated via desktop tools, and inspected annually (100 easements were assigned for FY20) Calculation: Number of easements evaluated and inspected/Total easements assigned for the period TARGET 42 PERCENT OF PM’S COMPLETED –FLEET MAINTENANCE Target: 90% of scheduled preventative maintenance completed per quarter annually Calculation: Number of PM’s completed/Number of PM’s scheduled 100% 99% 96% 80% 85% 90% 95% 100% 2018 2019 2020 YE A R -EN D R E S U L T TARGET 43 PERCENT OF PM’S COMPLETED –RECLAMATION PLANT Target: 90% of scheduled preventative maintenance completed each quarter annually Calculation: Number of PM’s completed/Number of PM’s scheduled Aerial view of the Ralph W. Chapman Reclamation Plant 98%98% 100% 80% 85% 90% 95% 100% 2018 2019 2020 YE A R -EN D R E S U L T TARGET 44 PERCENT OF PM’S COMPLETED –PUMP/ELECTRIC SECTION Target: 90% of scheduled preventative maintenance completed per quarter annually Calculation: Number of PM’s completed/Number of PM’s scheduled District Vehicle towing a genset 100%100%100% 80% 85% 90% 95% 100% 2018 2019 2020 YE A R -EN D R E S U L T TARGET 45 SYSTEM VALVE EXERCISING PROGRAM Target: 3,080 valves exercised annually Calculation: Total number of valves exercised per year District staff performing a valve exercise 3405 3298 3319 2,000 2,200 2,400 2,600 2,800 3,000 3,200 3,400 2018 2019 2020 YE A R -EN D R E S U L T TARGET 46 POTABLE WATER DISTRIBUTION SYSTEM INTEGRITY (Water Operations) Target: No more than 16 leaks or breaks per 100 miles of distribution system annually AWWA: 16.1 leaks and breaks per 100 miles of distribution system (50th percentile Potable Water System Integrity: Leaks and Breaks for population served between 100,000-500,000) Calculation: [100 (annual total number of leaks + annual total number of breaks)] /total miles of distribution piping 1485-1 Pump Station TARGET 9.50 8.44 7.61 5 7 9 11 13 15 17 19 2018 2019 2020 AWWA BENCHMARK YE A R -EN D R E S U L T 47 RECYCLED WATER SYSTEM INTEGRITY Target: No more than 6.6 leaks or breaks per 100 miles of recycled distribution system annually Calculation: (100 x Number of leaks and breaks)/Number of miles of recycled distribution system TARGET 2.67 4.45 0.96 0 1 2 3 4 5 6 7 8 9 10 2018 2019 2020 YE A R -EN D R E S U L T 48 SEWER OVERFLOW RATE (AWWA) (Wastewater Operations) Target & AWWA: 0 overflows per quarter 75th Percentile for Sewer Overflow rate for population served between 0-50,000 Calculation: 100 x Total number of sewer overflows during the reporting period/Total miles of pipe in the sewage collection system District staff operating and documenting the condition of the collection system 0 1 1 0 1 2018 2019 2020 YE A R -EN D R E S U L T TARGET & AWWA BENCHMARK is 0 49 EMERGENCY FACILITY POWER TESTING* Target: Test 100% of all facilities scheduled per quarter to have all emergency facilities tested annually (36 powered ready facilities) Calculation: Number of facilities tested/Total number of facilities Emergency standby genset at the Cottonwood Sewer Lift Station 106% 94% 72% 50% 60% 70% 80% 90% 100% 110% 2018 2019 2020 YE A R -EN D R E S U L T ANNUAL TARGET *Due to COVID-19, all site testing was halted in 4th quarter 50 POTABLE TANK INSPECTION AND CLEANING Target: 8 potable water storage tanks and/or reservoirs cleaned annually Calculation: Total number of tanks cleaned and inspected annually 570-1 Reservoir 8 7 11 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 2018 2019 2020 YE A R -EN D R E S U L T ANNUAL TARGET 51 MAIN FLUSHING AND HYDRANT MAINTENANCE Target: 215 mains flushed and fire hydrants maintained annually 443 216 429 0 50 100 150 200 250 300 350 400 450 500 2018 2019 2020 YE A R -EN D R E S U L T ANNUAL TARGET Calculation: Total number of mains flushed and fire hydrants maintained per year District staff exercising a hydrant valve and flushing a hydrant at the same time 52 CRITICAL VALVE EXERCISING Target: 631 critical valves exercised annually Calculation: Total number of critical valves exercised in a year District staff exercising a District valve 633 631 631 5 105 205 305 405 505 605 2018 2019 2020 YE A R -EN D R E S U L T ANNUAL TARGET 53 EMPLOYEE VOLUNTARY TURNOVER RATE (Organizational Development) Target: Less than 5% turnover annually ANNUAL TARGET Calculation: Number of voluntary terminations (not including retirements)/Average number of employees 1.50% 3.77% 2.19% 0% 1% 2% 3% 4% 5% 6% 2018 2019 2020 YE A R -EN D R E S U L T 2019 Employee Appreciation Luncheon 54 TRAINING HOURS PER EMPLOYEE (Organizational Development) Target: 12 hours per employee annually Calculation: Total qualified training hours for all employees/Average number of FTEs District staff attending the “Women in Water Symposium“ TARGET 18.11 26.84 59.90 0 7 14 21 28 35 42 49 56 2018 2019 2020 YE A R -EN D R E S U L T 55 SAFETY TRAINING PROGRAM Target: 24 hours per field employee annually TARGET Calculation: Total qualified safety training hours for field employees/Average number of field employees District staff entering an excavation to complete a service replacement 30.38 35.44 79.04 0 10 20 30 40 50 60 70 80 2018 2019 2020 YE A R -EN D R E S U L T 56 Questions?