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09-20-22 EO&WR Committee Packet
1 OTAY WATER DISTRICT ENGINEERING, OPERATIONS, & WATER RESOURCES COMMITTEE MEETING and SPECIAL MEETING OF THE BOARD OF DIRECTORS 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA Board Room TUESDAY SEPTEMBER 20, 2022 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 COMMITTEE ON ANY SUBJECT MATTER WITHIN THE COMMIT-TEE'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA DISCUSSION ITEMS 3. ADOPT RESOLUTION NO. 4419 APPROVING THE ANNEXATION OF THE PROP-ERTY OWNED BY ROBINSON FAMILY TRUST (APN 519-281-02-00; 3110 SUN-FLOWER GLEN COURT, JAMUL, CA 91935) TO OTAY WATER DISTRICT SEWER IMPROVEMENT DISTRICT (ID) NO. 18 (LONG) [5 MINUTES] 4. ADOPT RESOLUTION NO. 4418, THE ANNEXATION OF THE PROPERTY OF FREDRICK MEJOS RESIDENCE WATER ANNEXATION, 0 PROCTOR VALLEY ROAD, CHULA VISTA, CA 91914, APN: 595-020-47-00 TO THE OTAY WATER DIS- TRICT AND TO WATER IMPROVEMENT DISTRICT (ID) NO. 22/27 (LONG) [5 MINUTES] 5. ADOPT RESOLUTION NO. 4417 TO AUTHORIZE A FINANCIAL ASSISTANCE AP-PLICATION FOR A GRANT AGREEMENT FROM THE STATE WATER RE- SOURCES CONTROL BOARD (SWRCB) FOR THE PLANNING OF THE JOINT SWEETWATER AUTHORITY (SWA) – OTAY WATER DISTRICT (OWD) RECYCLED WATER INTERTIE PROJECT (COBURN-BOYD) [5 MINUTES] 6. DECLARE 0.787 ACRES OF REAL ESTATE PROPERTY LOCATED ALONG THE FUTURE ALIGNMENT OF ALTA ROAD ON OTAY MESA AS SURPLUS AND AU-THORIZE THE GENERAL MANAGER TO ACCEPT AN OFFER FROM CH REALTY X-ELC I OTAY MESA BUSINESS PARK, L.P, A DELAWARE LIMITED PARTNER-SHIP (CH REALTY) TO PURCHASE 0.43 ACRES OF THE LAND FOR $168,000.00 2 AND ACCEPT A GRANT OF EASEMENT THAT SECURES THE OTAY WATER DIS-TRICT’S PRIOR PROPERTY RIGHTS (LONG) [5 MINUTES] 7. AUTHORIZE THE GENERAL MANAGER TO ISSUE PURCHASE ORDERS OF UP TO THE BUDGETED AMOUNT, AND ANY INFLATION ADJUSTMENTS IN ADDI-TION TO THE BUDGETED AMOUNTS, WHEN PRICING AND VEHICLES ARE AVAILABLE, FOR THE PURCHASE OF SEVEN FLEET VEHICLES AND ONE EX-CAVATOR IN AN OVERALL COST OF $882,500.00 (MEDEROS) [5 MINUTES] 8. FISCAL YEAR 2022 YEAR-END REPORT ON THE DISTRICT’S FISCAL YEARS 2019-2022 STRATEGIC PERFORMANCE PLAN (KERR) [15 MINUTES] 9. ADJOURNMENT BOARD MEMBERS ATTENDING: Tim Smith, Chair Ryan Keyes 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 by contacting the District Secretary at (619) 670-2253. 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 619-670-2253 at least 24 hours prior to the meeting. Certification of Posting I certify that on September 15, 2022, 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 15, 2022. /s/ Tita Ramos-Krogman, District Secretary STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 5, 2022 SUBMITTED BY: Michael Long Chief, Engineering PROJECT NO:: ANX-22-002 DIV. NO. 5 APPROVED BY: Michael Long, Chief, Engineering Jose Martinez, General Manager SUBJECT: Adopt Resolution No. 4419 Approving the Sewer Annexation of Property Owned by the Robinson Family Trust (APN 519-281-02-00; 3110 Sunflower Glen Court, Jamul, CA 91935) to Otay Water District Sewer Improvement District No. 18 GENERAL MANAGER’S RECOMMENDATION: Adopt Resolution No. 4419 approving the annexation of the property owned by Robinson Family Trust (APN 519-281-02-00; 3110 Sunflower Glen Court, Jamul, CA 91935) to Otay Water District Sewer Improvement District (ID) No. 18 (see Exhibit C for Location Map). COMMITTEE ACTION: Please see Attachment A. PURPOSE: The proposed annexation is to provide sewer service to the parcel located at 3110 Sunflower Glen Court, Jamul, CA in an unincorporated area of the County of San Diego California 91935 (APN 519-281-02-00). ANALYSIS: A written request and Petition signed by Licensed Surveyor, Elliot May, has been received for annexation of APN 519-281-02-00, located at 3110 Sunflower Glen Court in the unincorporated area of Jamul in the County of San Diego, for sewer service. The total acreage to be annexed is 1.02 acres. The property is within the jurisdictional AGENDA ITEM 3 2 boundary of the Otay Water District and following the Board’s approval, it will become part of Sewer ID No. 18. The parcel is located adjacent to an existing 10-inch Otay Water District sewer main within a permanent 20-foot right-of-way easement. The parcel is already contained within the District’s water ID boundary. This parcel is part of the District’s Wastewater Master Plan. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The property owner has paid the District’s annexation processing fee of $898.01, sewer annexation fee for one (1) sewer EDU (current fee is $1,261.95 per EDU) and will pay sewer capacity fees upon annexation approval for parcels located outside the sewer ID (current fee is $9,315.33 per EDU) in effect at the time the service is provided, and any additional fees, including the availability fee, as established in the attached Resolution. STRATEGIC GOAL: Provide enhanced sewer service to meet customer needs. LEGAL IMPACT: No legal impact. MJL:mlw https://otaywater365.sharepoint.com/sites/engpublicservices/Shared Documents/SAMP WSA ANX/D1134-090552 Sewer Annexation-3110 Sunflower Glen Jamul/Staff Report/BD 10-05-2022 - Staff Report Sewer Annexation ID 18- Robinson Family Trust Annex Request.doc Attachments: Attachment A - Committee Action Attachment B - Resolution No. 4419 Exhibit A - Legal Description Exhibit B - Legal Map Exhibit C – Location Map ATTACHMENT A SUBJECT/PROJECT: ANX-22-002 Adopt Resolution No. 4419 Approving the Sewer Annexation of Property Owned by Robinson Family Trust (APN 519-281-02-00; 3110 Sunflower Glen Ct., Jamul, CA 91935) to Otay Water District Improvement District No. 18 COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on September 20, 2022. 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. ATTACHMENT B Page 1 of 4 RESOLUTION NO. 4419 A RESOLUTION OF THE BOARD OF DIRECTORS OF OTAY WATER DISTRICT APPROVING THE ANNEXATION TO OTAY WATER DISTRICT IMPROVEMENT DISTRICT NO. 18 OF THOSE LANDS DESCRIBED AS “ROBINSON FAMILY TRUST SEWER ANNEXATION (APN: 519-281-02-00)” (FILE NO. ANX-22-002/DIVISION 5) WHEREAS, a letter has been submitted by ELLIOT MAY, the Licensed Surveyor representing the owner and party (Robinson Family Trust) that has an interest in the land described in Exhibit "A," attached hereto, for annexation of said land to Otay Water District Sewer Improvement District No. 18 pursuant to California Water Code Section 72670 et seq.; and WHEREAS, pursuant to Section 72680.1 of said Water Code, the Board of Directors may proceed and act thereon without notice and hearing. NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT FINDS, RESOLVES, ORDERS AND DETERMINES as follows: 1. A depiction of the area proposed to be annexed, and the boundaries of ID 18 following the annexation, is set forth on a map in Exhibit “B” filed with the Secretary of the District, which map shall govern for all details as to the area proposed to be annexed. 2. The purpose of the proposed annexation is to make sewer service available to the area to be annexed, which availability constitutes a benefit to said area. 3. The Board finds and determines that the area proposed to be annexed to ID 18 will be benefited by such annexation and that the property currently within ID 18 will also be benefited and not injured by such annexation because after the annexation ATTACHMENT B Page 2 of 4 a larger tax base will be available to finance the sewer facilities and improvements of ID 18. 4. The Board of Directors hereby declares that the annexation of said property is subject to the owners complying with the following terms and conditions: (a) The petitioner for said annexation shall pay to Otay Water District the following: (1) The annexation processing fee at the time of application; (2) State Board of Equalization filing fees in the amount of $350, if applicable; (3) The sewer annexation fees at the time of connection to the Otay Water District water system; (4) Yearly assessment fees will be collected through the County Tax Assessor’s office in the amount of $10 for APN 519-281-02-00; (5) In the event that sewer service is to be provided, Petitioners shall pay all applicable sewer fees per Equipment Dwelling Unit (EDU) at the time the sewer connection is purchased; and (6) Payment by the owner of APN 519-281-02-00 of all other applicable local or state agency fees or charges. (b) The property to be annexed shall be subject to taxation after annexation thereof for the ATTACHMENT B Page 3 of 4 purposes of the improvement district, including the payment of principal and interest on bonds and other obligations of the improvement district, authorized and outstanding at the time of annexation, the same as if the annexed property had always been a part of the improvement district. 5. The Board hereby declares the property described in Exhibit "A" shall be considered annexed to ID 18 upon passage of this resolution. 6. The Board of Directors further finds and determines that there are no exchanges of property tax revenues to be made pursuant to California Revenue and Taxation Code Section 95 et seq., as a result of such annexation. 7. The annexation of APN 519-281-02-00 to the District’s Sewer Improvement District 18 is hereby designated as the “ROBINSON FAMILY TRUST SEWER ANNEXATION (APN: 519-281-02-00).” 8. Pursuant to Section 57202(a) of the Government Code, the effective date of the ROBINSON FAMILY TRUST SEWER ANNEXATION (APN: 519-281-02-00) shall be the date this Resolution is adopted by the Board of Directors of the Otay Water District. 9. The General Manager of the District and the Secretary of the District, or their respective designees, are hereby ordered to take all actions required to complete this annexation. ATTACHMENT B Page 4 of 4 PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting held this 5th day of October, 2022. President ATTEST: __________________________________ District Secretary Annexation No. 2022- Annexation to Otay Water District Sewer System Geographical Description ALL THAT CERTAIN REAL PROPERTY SITUATED IN SECTION 29 AND SECTION 32, TOWNSHIP 16 SOUTH, RANGE 1 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA ACCORDING TO UNITED STATE GOVERNMENT SURVEY, DESCRIBED AS FOLLOWS: BEGINNING AT AN ANGLE POINT IN THE BOUNDARY OF OTAY WATER DISTRICT DISTANT THEREON NORTH 88°33’45” WEST 3017.88 FEET FROM THE NORTHWEST CORNER OF THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 32 FROM WHICH CORNER THE NORTHEAST CORNER OF SAID SECTION 32 BEARS NORTH 88°33’54” EAST, 1318.84 FEET. SAID POINT BEING THE NORTHWEST CORNER OF LOT 9 ACCORDING TO MAP THEREOF NO. 9664 FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID SAN DIEGO COUNTY, MAY 28, 1980. THENCE ALONG THE WESTERLY LINE OF SAID LOT 9 AND THE OTAY WATER DISTRICT BOUNDARY. 1. SOUTH 00°07’36” WEST 213.58 FEET TO THE SOUTHWEST CORNER OF SAID LOT 9; THENCE ALONG THE SOUTH LINE OF SAID LOT 9 AND LEAVING THE OTAY WATER DISTRICT BOUNDARY. 2. SOUTH 85°51’25” EAST 245.57 FEET TO THE MOST SOUTHERLY CORNER OF SAID LOT 9, BEING THE BEGINNING OF A NONTANGENT CURVE HAVING A RADIUS OF 48.00 FEET. A RADIAL LINE TO SAID POINT BEARS NORTH 85°51’25” WEST; THENCE NORTHEASTERLY ALONG SAID CURVE AND THE BOUNDARY OF LOT 9 3. THROUGH A CENTRAL ANGLE OF 50°03’06” A DISTANCE OF 41.93 FEET; THENCE ALONG THE NORTHEAST LINE OF SAID LOT 9 4. NORTH 35°48’19” WEST 238.08 FEET TO THE NORTHEAST CORNER OF SAID LOT 9 AND BEING THE BOUNDARY OF OTAY WATER DISTRICT; THENCE ALONG THE NORTH LINE OF SAID LOT 9 AND THE OTAY WATER DISTRICT BOUNDARY 5. NORTH 88°43’35” WEST 125.00 FEET TO THE POINT OF BEGINNING CONTAINING 1.02 ACRES MORE OR LESS FOR ASSESSMENT PURPOSES ONLY. THIS DESCRIPTION OF LAND IS NOT A LEGAL PROPERTY DESCRIPTION AS DEFINED IN THE SUBDIVISION MAP ACT AND MAY NOT BE USED AS THE BASIS FOR AN OFFER FOR SALE OF THE LAND DESCRIBED. Sincerely, DATE: 05-09-2022 Elliott M. May, RCE 18592 May Engineering and Surveying EXHIBIT A STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 5, 2022 SUBMITTED BY: Michael Long Chief of Engineering PROJECT: ANX-22-003 DIV. NO. 3 APPROVED BY: Michael Long, Chief, Engineering Jose Martinez, General Manager SUBJECT: Frederick Mejos Residence Water Annexation, 0 Proctor Valley Road, Chula Vista, CA 91914, APN: 595-020-47-00 to the Otay Water District and to Water Improvement District ID No. 22/27 GENERAL MANAGER’S RECOMMENDATION: Adopt Resolution No. 4418, the annexation of the property of Fredrick Mejos Residence Water Annexation, 0 Proctor Valley Road, Chula Vista, CA 91914, APN: 595-020-47-00 to the Otay Water District and to Water Improvement District ID No. 22/27 (see Attachment B). COMMITTEE ACTION: Please see Attachment A. PURPOSE: The purpose of the proposed annexation of the property, owned by Frederick Mejos (“Property Owner”), located at 0 Proctor Valley Road, Chula Vista, CA 91914, APN: 595-020-47-00 to the Otay Water District and to Water Improvement District ID No. 22/27 is to make water service available to the parcel owned by the Property Owner. ANALYSIS: A written request and Petition signed by the Property Owner has been received for annexation of APN: 595-020-47-00 into Improvement District No. 22/27 for water service. The total acreage to be annexed is 0.46 acres. The parcel is currently within the District's sphere of influence of the District’s Water Improvement District No. 22/27 as shown in Exhibit D. Therefore, annexation of this property to the District, and to Improvement District No. 22/27, is required for water service. AGENDA ITEM 4 2 The property currently receives no water service and the District’s water facilities are located adjacent to the property. This annexation will not create an island. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The property owner has paid the District’s annexation processing fee of $898.01 and the water annexation fee of $2,359.66 for a total of $3,257.67 deposited into account D1138-090563 and will pay any additional service fees including the water capacity fee as established in the attached Resolution No. 4418. GRANTS/LOANS: Not applicable. 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 responsible manner” and the General Manager’s Vision, "To be a model water agency by providing stellar service, achieving measurable results, and continuously improving operational practices." LEGAL IMPACT: None. MJL:mlw Https://otaywater365.sharepoint.com/sites/engpublicservices/Shared Documents/SAMP WSA ANX/D1138-090563 Water Annexation Proctor Valley Rd_APN 595-020-47-00/BD 10-05-2022 Water Annexation Fredrick Mejos Staff Report.docx Attachments: Attachment A - Committee Action Attachment B - Resolution No. 4418 Exhibit A - Legal Description Exhibit B - Legal Map Exhibit C – Grant Deed Exhibit D – Location Map ATTACHMENT A SUBJECT/PROJECT: ANX-22-003 Frederick Mejos Residence Water Annexation, 0 Proctor Valley Road, Chula Vista, CA 91914, APN: 595-020-47-00 to the Otay Water District and to Water Improvement District ID No. 22 COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on September 20, 2022. 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. ATTACHMENT B Page 1 of 4 RESOLUTION NO. 4418 A RESOLUTION OF THE BOARD OF DIRECTORS OF OTAY WATER DISTRICT APPROVING THE ANNEXATION TO OTAY WATER DISTRICT WATER IMPROVEMENT DISTRICT NO. 22/27 OF THOSE LANDS DESCRIBED AS “FREDERICK MEJOS WATER ANNEXATION (APN: 595-020-47-00)” (FILE NO. ANX 22-003/DIVISION 3) WHEREAS, a letter has been submitted by Frederick Mejos, the owner and party that has an interest in the land described in Exhibit "A," attached hereto, for annexation of said land to Otay Water District Water Improvement District No. 22/27 pursuant to California Water Code Section 72670 et seq.; and WHEREAS, pursuant to Section 72680.1 of said Water Code, the Board of Directors may proceed and act thereon without notice and hearing. NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT FINDS, RESOLVES, ORDERS AND DETERMINES as follows: 1. A depiction of the area proposed to be annexed, and the boundaries of ID 22/27 following the annexation, is set forth on a map in Exhibit “B” filed with the Secretary of the District, which map shall govern for all details as to the area proposed to be annexed. 2. The purpose of the proposed annexation is to make water service available to the area to be annexed, which availability constitutes a benefit to said area. 3. The Board finds and determines that the area proposed to be annexed to ID 22/27 will be benefited by such annexation and that the property currently within ID 22/27 will also be benefited and not injured by such annexation because after the ATTACHMENT B Page 2 of 4 annexation a larger tax base will be available to finance the water facilities and improvements of ID 22/27. 4. The Board of Directors hereby declares that the annexation of said property is subject to the owners complying with the following terms and conditions: (a) The petitioner for said annexation shall pay to Otay Water District the following: (1) The annexation processing fee and water annexation fee at the time of application; (2) State Board of Equalization filing fees in the amount of $300 (Requirements & Fees – Boundary Change, August 1, 2005); (3) The OWD capacity fees at the time of connection to the Otay Water District water system; (4) Any annual assessment fees collected through the County Tax Assessor’s for APN 595-020- 47-00; (5) In the event that sewer service is to be provided, Petitioners shall pay all applicable sewer fees per Equipment Dwelling Unit (EDU) at the time the sewer connection is purchased; and (6) Payment by the owner of APN 595-020-47-00 of all other applicable local or state agency fees or charges. ATTACHMENT B Page 3 of 4 (b) The property to be annexed shall be subject to taxation after annexation thereof for the purposes of the improvement district, including the payment of principal and interest on bonds and other obligations of the improvement district, authorized and outstanding at the time of annexation, the same as if the annexed property had always been a part of the improvement district. 5. The Board hereby declares the property described in Exhibit "A" and depicted in Exhibit “B” shall be considered annexed to ID 22/27 upon passage of this resolution. 6. The Board of Directors further finds and determines that there are no exchanges of property tax revenues to be made pursuant to California Revenue and Taxation Code Section 95 et seq., as a result of such annexation. 7. The annexation of APN 595-020-47-00 to the District’s Water Improvement District 22/27 is hereby designated as the “FREDERICK MEJOS RESIDENCE WATER ANNEXATION (APN: 595-020-47- 00)”. 8. Pursuant to Section 57202(a) of the Government Code, the effective date of the “FREDERICK MEJOS RESIDENCE WATER ANNEXATION (APN: 595-020-47-00)” shall be the date this Resolution is adopted by the Board of Directors of the Otay Water District. 9. The General Manager of the District and the Secretary of the District, or their respective designees, are hereby ATTACHMENT B Page 4 of 4 ordered to take all actions required to complete this annexation. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting held this 5th day of October, 2022. President ATTEST: __________________________________ District Secretary ANNEXATION NO. ANX-22-003 ANNEXATION TO OTAY WATER DISTRICT GEOGRAPHICAL DESCRIPTION THE NORTHERLY 95 FEET OF LOT 6 IN HALEY'S ADDITION, ACCORDING TO MAP THEREOF NO. 1286, IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID SAN DIEGO COUNTY, SEPTEMBER 22, 1910, MORE PARTICULARY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SECTION 28, TOWNSHIP 17 SOUTH, RANGE 1 WEST, SAN BERNARDINO, ACCORDING TO OFFICIAL PLAT THEREOF FILED IN SAID OFFICE OF THE COUNTY RECORDER; THENCE, ALONG THE FOLLOWING COURSES: COURSE 1: SOUTH 01° 26' 13” WEST 2087.77' TO THE TRUE POINT OF BEGINNING COURSE 2: NORTH 89° 56' 46" WEST 211.66' COURSE 3: NORTH 01° 19' 50” EAST 95.02' COURSE 4: SOUTH 89° 56' 46” EAST 198.18' COURSE 5: SOUTH 62° 42' 00” EAST 14.95' COURSE 6: SOUTH 01° 26' 13” WEST 88.17' TO THE TRUE POINT OF BEGINNING CONTAINING 20,058.8 SQUARE FEET OR 0.460 ACRES MORE OR LESS. FOR ASSESSMENT PURPOSES ONLY. THIS DESCRIPTION IS NOT A LEGAL PROPERTY DESCRIPTION AS DEFINED IN SUBDIVISION MAP ACT AND MAY NOT BE USED AS THE BASIS FOR AN OFFER FOR SALE OF THE LAND DESCRIBED. ____________________________________________________ VICTOR RODRIGUEZ-FERNANDEZ DATE LS 5335 6/14/2022 EXHIBIT A SITE E SYMBOLITEM MEJOS RESIDENCE ANEXATION 60300 6/15/2022 EXHIBIT B RECOROtNG REQUESTED BY: Armando Vazquez Gonzalez WHEN RECORDED MAIL TO AND MAIL TAX STATEMENTS TO: Name:Frederick and Jean Mejos Adct'ess: 2181 Corte San Simeon City: Chula Vista St.ate, 21p:. __ C_a_. _9_19_1_4 __ _ DOC# 2022-0001498 1111\ll ll�I IIU ijl\l \1111\llll lllll 11111 lllll lllll l\111 1111111111111 Jan 03, 2022 01 :49 PM OFFICIAL RECORDS Ernest J. Oronenburg, Jr., SAN DIEGO COUNiY RECORDER FEES: $85 50 (S82 Atkins: $0.00)PCORYES PAGES: 1 CALIFORNIA QUITCLAIM DEED Tide Order No. ______ Eacrow OR LOAN No.______ APN No. 595-020-4 7 -0( THE UNDERSIGNED GRANTOR(s) DECl.ARE(s) DOCUMENTARY TRANSFER TAX Is $._z?.._!_._,;_!J _________ CITY TAX$ ______ _r!!/ C«nputed on full value of pro� conveyed, or O Computed on full Y"alue less v.>lue of liens or encumbrances r.emalrvng at lime of sale,'r!!' Unincorpor-Med aru � Cityof Bonita. Ca. FOR A VALUABLE CONSIDERATION. �ipt of which is hereby acknowledged, Armando Vazguez Gonzalez a single man H-,.by remiw, release .and forever quitclaim to . and !Frederick e. MeJos and Jean P Mejos, Husband and Wife as Joint Tenants The following dKcriMd real prop&rty in 1he County of:San Diego . sca. of Caifomia: The Northerly 95 feet of lot 6 in Haley's addition. according to map thereof no. 1286. filed in the office of the county recorder of said San Diego County. September 22, 191 o December 2 C/) zo 21 ar,� �--a. f'YVl<U1 Jo v{,.__7r 7:-Govt <'A. )e L.. � STATE OF CALIFORNIA County of s"":u � } ss D.e C-"2-� t" � L(7"' j I� Gafol, Tri1 t,)J }�d fJc.v� {;, C On · I b...-.me, -�__._ ____________ , ____ __,_ .... [ ____ _ DIR � � ftl TIie d OfflCl:t peBonalt)' •ppe•red ArM,c.if\Ao Vu 'Zu.,1..l €'?. bo('I 2. 2..who proved to me on the basis ohallsfac&oryevidence to be the per.;on(') whose name{s) Ii/are subscribed to the within Instrument. and acknowledged to me that he/she1lhey executed the same In hislhe1ftheir authorized capaci1y(I�). and that by his/htm¼eir signature,16) on the l�tNment the person�) or the entity upon behalf ol which the pel"IOn(-> acted. executed the instrument I certify undef PENAL TY OF PERJURY ooder the laws of the Slate of Carifomiai that the for9going paragr.aph is we and oorrect EXHIBIT C @ SHT 2 I• 00.t2AC.• ,AC ,JI"' �· 17 0111 16 er� -o •59• ... -... 211. 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CL ..,, 06 2042 35 N! ·-06 1790 \�2 07 1429 27 HWY"'" 08 19152 CANC1&,n, I>---78, 70, l>fCK\JF 09 1808 -80, 81, 82&8."15"6 fU 10 1126 PJ:i,K 85 11 1042 OTAY WATER DISTRICTANNEXATION OF APN 595-020-47-00TO THE OTAY WATER DISTRICT AND TOWATER IMPROVEMENT DISTRICT 22 EXHIBIT AC:\OneDrive Work\Otay Water District\ENG PUBLIC SERVICES - Documents\SAMP WSA ANX\D1138-090563 Water Annexation Proctor Valley Rd_APN 595-020-47-00\Archieve\GIS Exhibit-Water Annexation 595-020-47-00, ANX-22-003.mxd VICINITY MAP PROJECT SITE DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ÃÅ54 !\ ÃÅ125 ÃÅ94 ÃÅ905 §¨¦805 FNTS APN 595-020-47-00 ANX-22-003F 0 240120 Feet PROCTOR Aä VALLEYRD ROLLING CIR C U L O C O R O N A D O R D R I D G E STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 5, 2022 SUBMITTED BY: Lisa Coburn-Boyd Environmental Compliance Specialist PROJECT: P1210- 008000 DIV. NO. All APPROVED BY: Bob Kennedy, Engineering Manager Michael Long, Chief, Engineering Jose Martinez, General Manager SUBJECT: Adopt Resolution No. 4417 Authorizing a Financial Assistance Application for a Planning Grant Agreement from the State Water Resources Control Board for the Joint Sweetwater Authority – Otay Water District Recycled Water Intertie Project GENERAL MANAGER’S RECOMMENDATION: Adopt Resolution No. 4417 (Attachment B) to authorize a financial assistance application for a grant agreement from the State Water Resources Control Board (SWRCB) for the planning of the Joint Sweetwater Authority (SWA) – Otay Water District (OWD) Recycled Water Intertie Project(see Exhibit A for Project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: The purpose of this Resolution is to authorize a financial assistance application for a planning grant agreement from the SWRCB SWA-OWD Recycled Water Intertie Project. The SWRCB requires that the resolution be approved by the Board of the lead agency for the grant and be submitted with the grant application. The required resolution is brief and simply specifies the representative at the lead agency who is authorized to sign and file the application for a grant AGENDA ITEM 5 2 agreement. It also specifies that the authorized representative or their designee can provide assurances, certifications, and commitments required for the application and that they are able to execute the financial assistance agreement if awarded by the SWRCB. ANALYSIS: On August 11, 2022, two Board members from the District and two Board members from Sweetwater Authority met as an Ad Hoc Committee or Task Force to discuss potential recycled water opportunities and to look for ways to work together to solve common problems. A joint project with SWA to study the feasibility of recycled water use within SWA and expanding the use within the District’s service area was proposed during this meeting. The study would be prepared by a consultant in conjunction with staff from OWD and SWA. The study would include an assessment of potential recycled water customers within the District and SWA service areas and the amount of recycled water that could reasonably be used by each customer. The study would also prepare feasibility level cost estimates and timelines to convert existing potable irrigation systems for recycled water use at identified customer sites and for construction of any new infrastructure required for conveyance of recycled water from OWD to customers within SWA. Lastly, a determination of the regulatory compliance that would be required for OWD and SWA to implement the use of recycled water within the SWA service area would be included in the study. Staff identified the SWRCB Water Recycling Funding Program Planning Grant as a possible opportunity to receive funding for this planning project. Generally, all costs necessary to determine the feasibility of using recycled water may be eligible for the planning grant. The grant, if awarded, will generally cover 50 percent of the eligible planning costs up to the maximum established by SWRCB, which is $150,000. OWD staff will work with our as-needed grant writing and administration consultant staff to prepare the application for this funding opportunity. As required, Resolution No. 4417 will be included as an attachment to the grant application. FISCAL IMPACT: Joe Beachem, Chief Financial Officer As a part of the Fiscal Year (FY) 2023 operating budget development process, the FY 2023 annual budget for Grant Funding Research and Writing Consultant services was projected by staff to be $40,000. Staff expects a $40,000 expenditure for FY 2024. The District’s six- 3 year rate model, as part of the FY 2023 budget, includes the anticipated future years’ expenditures associated with this Project through its completion in FY 2024. Based on a review of the budget, staff has determined that with the combined approved FY 2023 and planned FY 2024 budgets, it is anticipated to be sufficient to support the Recycled Water Intertie Project Study. GRANTS/LOANS: Engineering staff has identified the SWRCB Water Recycling Funding Program Planning Grant as a possible funding source for the Joint Sweetwater Authority – Otay Water District Recycled Water Intertie Project. 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 responsible manner” and the General Manager’s Vision, "To be a model water agency by providing stellar service, achieving measurable results, and continuously improving operational practices." LEGAL IMPACT: None. LC-B/BK:mlw Https://Otaywater365.Sharepoint.Com/Sites/Engoperating/Shared Documents/Engineering/Sweetwater Authority/Staff Reports/Bd_10-05-2022_Staff Report_SWRCB RW Planning Grant Funding Resolution (LCB-BK).Docx Attachments: Attachment A – Committee Action Attachment B – Resolution Exhibit A – Project Location ATTACHMENT A SUBJECT/PROJECT: P1210 Resolution Authorizing a Financial Assistance Application for a Planning Grant Agreement from the State Water Resources Control Board for the Joint Sweetwater Authority – Otay Water District Recycled Water Intertie Project COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on September 20, 2022. 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. ATTACHMENT B RESOLUTION NO. 4417 A RESOLUTION AUTHORIZING A FINANCIAL ASSISTANCE APPLICATION FOR A PLANNING GRANT AGREEMENT FROM THE STATE WATER RESOURCES CONTROL BOARD FOR THE JOINT SWEETWATER AUTHORITY – OTAY WATER DISTRICT RECYCLED WATER INTERTIE PROJECT WHEREAS, Otay Water District (OWD) wishes to submit a Financial Assistance Application to the State Water Resources Control Board Water Recycling Funding Program. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Otay Water District (the “Entity”), AS FOLLOWS: The General Manager (the “Authorized Representative”) or designee is hereby authorized and directed to sign and file, for and on behalf of the Entity, a Financial Assistance Application for a grant agreement from the State Water Resources Control Board for the planning, design, and construction of the Joint Sweetwater Authority – Otay Water District Recycled Water Intertie Project (the “Project”). This Authorized Representative, or his/her designee, is designated to provide the assurances, certifications, and commitments required for the financial assistance application, including executing a financial assistance agreement from the State Water Resources Control Board and any amendments or changes thereto. The Authorized Representative, or his/her designee, is designated to represent the Entity in carrying out the Entity’s responsibilities under the grant agreement, including certifying disbursement requests on behalf of the Entity and compliance with applicable state and federal laws. PASSED AND ADOPTED by the Otay Water District Board of Directors this 5th day of October, 2022. Ayes: Noes: Abstain: Absent: ________________________ Timothy Smith, President Otay Water District ATTEST: ________________________ District Secretary 2 CERTIFICATION I do hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted at a meeting of the Otay Water District Board of Directors held on October 5, 2022. __________________________________ _________________________ Name Title OTAY WATER DISTRICT JOINT SWA-OWD RECYCLED WATER INTERTIE PROJECT POSSIBLE POINTS OF CONNECTIONLOCATION MAPEXHIBIT AC:\Users\donald.bienvenue\OneDrive - Otay Water District\Desktop\Exhibit A -Potential Points of Connection With SWA.mxd ! ! ! ! ! !! ! ! ! !! ! ! UT §¨¦ ÃÅ 805 !\ VICINITY MAP DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ÃÅ54 !\ !\ SITE SITE SITE ÃÅ125 ÃÅ94 ÃÅ905§¨¦805 FNTS CIP P1210F 0 2,5001,250 Feet POTENTIAL POINT OF CONNECTION POTENTIAL POINT OF CONNECTION POTENTIAL POINT OF CONNECTION SWEETWATER AUTHORITY OTAY WATERDISTRICT OTAY WATER DISTRICT BOUNDARY LEGEND OTAY WATER DISTRICT RECYCLED WATER PIPELINE STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 5, 2022 SUBMITTED BY: Michael J. Long Chief of Engineering PROJECT: D1132-090550 DIV. NO. 2 APPROVED BY: Michael J. Long, Chief, Engineering Jose Martinez, General Manager SUBJECT: Sale of 0.43 Acres of Otay Water District Property Located Along the Future Alignment of Alta Road on Otay Mesa GENERAL MANAGER’S RECOMMENDATION: That the Board: 1. Declare 0.787 acres of real estate property located along thefuture alignment of Alta Road on Otay Mesa as surplus (seeExhibit A for location). 2. Authorize the General Manager to accept an offer from CH Realty X-ELC I Otay Mesa Business Park, L.P, a Delaware limitedpartnership (CH Realty) to purchase 0.43 acres of the land for$168,000.00 (Exhibit B) and accept a Grant of Easement thatsecures the Otay Water District’s prior property rights (ExhibitC). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain approval from the Otay Water District Board (Board) to declare 0.787 acres of District property as surplus and to authorize the General Manager to accept an offer from CH Realty X-ELC I Otay Mesa Business Parks, L.P, a Delaware limited partnership (CH Realty) to purchase 0.43 acres of the land for $168,000.00 and accept a Grant of Easement that secures the Otay Water District’s prior property rights. AGENDA ITEM 6 2 ANALYSIS: The District owns a thirty (30) foot wide parcel (APN 648-070-37-00) on Otay Mesa that is located in the future alignment of Alta Road. The property is located in the west half of proposed Alta Road, a short distance south of Siempre Viva Road, in the Otay Mesa Road community of unincorporated San Diego County. (See Exhibit A). The parcel supports the District’s 24-inch water distribution main that supplies emergency water to Mexico. The State of California Department of Transportation (Caltrans) is in the process of moving forward with the development of State Route 11 (SR 11) east of Enrico Fermi Drive on Otay Mesa. The work by Caltrans includes acquisition of right-of-way for the SR 11 project. This recent activity by Caltrans has assisted in moving development projects on Otay Mesa forward including the Otay Crossings Commerce Park. The Otay Crossings Commerce Park project consists of 311.5-acres of mixed industrial land. The future extension of SR-11 is planned to be constructed through the Otay Crossings Commerce Park project. As a condition of development, the Otay Crossings Commerce Park, which is located immediately east of the District’s thirty (30) foot wide parcel, is required to construct the extension of Alta Road between Otay Mesa Road and Airway Road. The Otay Crossings Commerce Park is also required to install off-site sewer improvements to support the development. These improvements include sewer that will be located in the future Alta Road between Airway Road and Siempre Viva Road. CH Realty, the developer for the Otay Crossings Commerce Park, has approached the District to purchase portions of the District’s property, which are needed to construct the extension of Alta Road and the off-site sewer. The developer funded a District appraisal for the acquisition of the District’s property. A Purchase and Sale Agreement and Escrow Instructions have been developed for the purchase of the property (Exhibit B), which includes the plat and legal descriptions. A Grant of Easement of Right-of-Way has also been developed to secure the District prior rights (Exhibit C). Staff is recommending that these documents be executed in substantially the same form as shown. Once the Alta Road improvements are completed, the developer will dedicate these improvements to the County of San Diego. FISCAL IMPACT: Joe Beachem, Chief Financial Officer This land sale will result in a one-time revenue to the District of $168,000.00. 3 STRATEGIC GOAL: The expansion of the distribution system through the construction developer projects supports the District’s Mission statement, “To provide high value water and wastewater services to the customers of the Otay Water District in a professional, effective, and efficient manner” and the General Manager’s Vision, "A District that is at the forefront in innovations to provide water services at affordable rates, with a reputation for outstanding customer service." LEGAL IMPACT: None. MJL:mlw Https://Otaywater365.Sharepoint.Com/Sites/Engpublicservices/Shared Documents/Public-S/STAFF REPORTS/2022/BD 10-05-2022/Staff Report_D1132-090550_10-5-22 (ML).Docx Attachments: Attachment A – Committee Action Exhibit A – Location Map Exhibit B – Purchase and Sale Agreement and Escrow Instructions Exhibit C - Joint Use Agreement between the County of San Diego and Otay Water District ATTACHMENT A SUBJECT/PROJECT: D1132-090550 Sale of 0.43 Acres of Otay Water District Property Located Along the Future Alignment of Alta Road on Otay Mesa COMMITTEE ACTION: The Engineering, Operations and Water Resources Committee (Committee)reviewed this item at a meeting held on September 20, 2022 and the following comments were made: 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. OTAY WATER DISTRICTPROPOSED PURCHASE OF OWD PROPERTYAPN 648-070-37 EXHIBIT AC:\OneDrive Work\Otay Water District\ENG PUBLIC SERVICES - Documents\Public-s\STAFF REPORTS\2022\BD 10-05-2022\OWD Alta Rd Property for Purchase 648-070-37.mxd ALTA ROAD OTAY MESA ROAD PASEO DELA FUENTE DE LA FUENTECT Alta Rd Airway Rd Otay Mesa Rd Siempre Viva Rd AÜ Port of EntryOWD APN 648-070-37Proposed Purchase ofOWD Property (0.79 AC) OWD APN 648-070-37OWD Property Ownershipto Remain (0.36 AC) VICINITY MAP SITE DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ÃÅ54 !\ ÃÅ125 ÃÅ94 ÃÅ905 §¨¦805 FNTS D1132-090550F 0 1,000500 Feet Legend APN 648-070-37, Proposed Purchase of OWD Property APN 648-070-37, OWD Property Ownership to Remain M E X I C O PURCHASE AND SALE AGREEMENT AND ESCROW INSTRUCTIONS This Purchase and Sale Agreement and Escrow Instructions ("Agreement") is entered into effective as of , 2022, which shall be the date of execution by both parties to this Agreement ("Effective Date"), between OTAY WATER DISTRICT, a municipal water district formed under the Municipal Water District Act of 1911 (“Seller”) and CH REALTY X-ELC I OTAY MESA BUSINESS PARK, L.P., a Delaware limited liability company (“Buyer"), and constitutes an agreement for purchase and sale between the parties and joint escrow instructions to the Escrow Agent identified herein and is made with reference to the following facts: RECITALS A.Seller is the owner of the approximately 0.43 acres of land (“Property”) in theEast Otay Mesa area in the unincorporated County of San Diego, State of California. The Property is more particularly described in Exhibits “A” and “A-1” attached hereto. B.Seller desires to sell the Property to Buyer and Buyer desires to purchase the Property, all on the terms and conditions in this Agreement. FOR GOOD AND VALUABLE CONSIDERATION, the receipt and adequacy of which are acknowledged, Buyer and Seller agree as follows: ARTICLE 1 PURCHASE AND SALE 1.1 Purchase and Sale. On the terms and conditions set forth herein, Seller agrees to sell the Property to Buyer, and Buyer agrees to purchase the Property from Seller. ARTICLE 2 AGREEMENT OF SALE AND PURCHASE PRICE 2.1 Purchase Price. The purchase price for the Property shall be ($168,000.00) (the "Purchase Price"). 2.2 Payment of Purchase Price. Buyer shall deliver to Escrow Agent on the Close of Escrow (defined below), Cash (defined below) representing the balance of the Purchase Price due. EXHIBIT B ARTICLE 3 CLOSING 3.1 Opening of Escrow. No later than one day after the execution of this Agreement, the Buyer and Seller shall open an Escrow at First American Title Insurance Company, Attn: Melissa Smith, 4380 La Jolla Village Drive, Suite 110, San Diego, CA 92122; Phone: 858-410-3885; Cell: 619-385-1760; Fax: 877-461-2095; Email: melsmith@firstam.com ("Escrow" or “Escrow Agent”). 3.2 Close of Escrow. Escrow shall close on the Closing Date as set forth in Section 3.3 below. 3.3 Closing Date. The Closing Date shall occur on or before a date, which is ten (10) business days after the Contingency Date (defined below). 3.4 Escrow Instructions. The parties agree to execute such additional supplemental escrow instructions not inconsistent with this Agreement as Escrow Agent may reasonably require in order to facilitate the consummation of the transactions contemplated in this Agreement, and otherwise to conform to the usual practice of Escrow Agent, provided such instructions do not conflict with the provisions hereof. If such an escrow instruction is contrary to, or inconsistent with, a provision of this Agreement, the provision of this Agreement controls. 3.5 Seller’s Delivery at Closing. On or before the Closing Date, Seller shall deliver into Escrow the following documents: 3.5.1 Grant Deed. A Grant Deed in recordable form and properly executed on behalf of Seller conveying to Buyer the Property in fee simple (“Grant Deed”). 3.5.2 IRS. Seller's affidavit that Seller is not a foreign person as defined in the Internal Revenue Code of 1986, as amended (42 USCS §1445(f)(3)). The affidavit shall be in the form prescribed by federal regulations. 3.5.3 FTB. A duly executed Certificate by Seller in favor of Buyer as required under Revenue and Taxation Code §§18662 and 18668. 3.5.4 Fees. The amount, if any, required of Seller under Articles 10 and 11 of this Agreement, entitled “Proration” and “Costs and Fees,” respectively. 3.5.5 Other Documents. Any other documents or instruments reasonably required to close the transaction contemplated hereby. The failure of Seller to make delivery of any of the documents described above on or before the Closing Date shall constitute a material breach hereof by Seller, provided that the conditions to such delivery, if any, have been fulfilled or waived. 3.6 Buyer’s Delivery at Closing. Buyer shall, on or before the Closing Date, deliver to Escrow Agent each of the following: 3.6.1 Cash. Cash representing the balance of the Purchase Price; 3.6.2 Fees. The amount, if any, required of Buyer under Articles 10 and 11 of this Agreement, entitled “Prorations” and “Costs and Fees,” respectively. 3.6.3 Other Documents. Any other documents or instruments reasonably required to close the transaction contemplated hereby. The failure of Buyer to make delivery of any of the documents described above by the Closing Date shall constitute a material breach hereof by Buyer, provided that the conditions to such delivery, if any, have been fulfilled or waived. 3.7 Completion of Documents. Escrow Agent is authorized to collate counterparts of documents deposited into Escrow, to insert the Closing Date as the effective date where appropriate, and to otherwise complete such documents in accordance with instructions received by both parties, where appropriate and consistent with this Agreement. ARTICLE 4 CONDITIONS TO CLOSE OF ESCROW 4.1 Contingency Date. The “Contingency Date” shall mean 5:00 pm on a date, which is ten (10) business days after the Effective Date. 4.2 Conditions Precedent. Seller and Buyer agree that the Closing is subject to the satisfaction or waiver of the following conditions precedent: 4.2.1 Due Diligence. Buyer, in its sole and absolute discretion, shall have until the Contingency Date to approve or disapprove, by written notice to Seller and Escrow Agent, all physical, developmental, economic, and any and all other aspects of the Property. If Buyer fails to give written notice to Seller and Escrow Agent of its approval or disapproval of all such matters on or before the Contingency Date, then Buyer shall be deemed to have disapproved the matters subject to its due diligence review as set forth herein, and the contingency set forth in this paragraph shall be deemed not satisfied. 4.3 Failure of Conditions. If the conditions set forth in Sections 4.2.1 are not satisfied or waived on or before the Contingency Date, Buyer may unilaterally terminate this Agreement and the Escrow by giving written notice of termination to Escrow Agent and a copy of such written notice to the Seller on or before the Contingency Date. In the event of such termination, and except as provided below, neither party shall have any further rights or obligations hereunder, except for any liability or obligation of Buyer and Seller, if any, pursuant to those provisions, which survive termination of this Agreement under the express terms of this Agreement. ARTICLE 5 TITLE 5.1 Delivery of PR. Within five (5) days after the Effective Date, Seller shall deliver to Buyer a preliminary report for the Property (“PR”) issued by First American Title Insurance Company (“Title Company”), together with copies of all underlying documents referred to therein and a plotting of all physical encumbrances disclosed in the PR. During the period between the Effective Date and the Closing or earlier termination of this Agreement, Seller shall not create any further liens or encumbrances to title without Buyer’s prior written consent. Seller shall cause to be removed all deeds of trust, if any, which are recorded against the Property upon Close of Escrow. 5.2 Permitted Exceptions. The following matters shall be deemed permitted exceptions to title to the Property (“Permitted Exceptions”) and Buyer shall take title to the Property subject thereto: 5.2.1 The lien of current, non-delinquent real estate taxes and assessments. 5.2.2 The lien of any supplemental taxes assessed pursuant to Chapter 3.5 commencing with Section 75 of the California Revenue and Taxation Code. 5.2.3 The exceptions set forth in the PR, to the extent they are approved by Buyer pursuant to Section 4.2.1. 5.3 Reservation of Easement. Notwithstanding Sections 5.1 and 5.2, above, Seller hereby reserves, for itself, its successors, heirs and assigns, a permanent easement of right-of-way over, under, and across the entire width and length of the Property, more particularly described in Exhibit “A” attached hereto, for the purpose of laying underground water and sewer pipelines and laterals, trunk lines, collection lines and laterals, sewer manholes and other underground and surface structures appurtenant to said water or sewer lines, including but not limited to power lines for transmission and communication purposes, pumps, regulators, valves and access roads or areas within said easement, hereinafter referred to as "said facilities," together with the right to construct, operate, maintain, repair and replace said facilities, and the right of ingress and egress for such purposes. Said easement is described and/or depicted as Exhibit “B” attached hereto. 5.4 Supplemental Reports. If the Title Company issues any supplement to the PR after the Contingency Date, which identifies any additional exceptions which are not Permitted Exceptions, Buyer shall have the right, notwithstanding expiration of the Contingency Date, to deliver written notice of its objection to the same, in writing, to Seller and Escrow Agent within five (5) business days after receipt of such supplemental report with respect to the new exceptions identified in such supplemental report. All exceptions which are approved by Buyer, in writing, shall be deemed Permitted Exceptions. If Buyer disapproves one or more exceptions in the supplemental report within such five (5) day period and Seller has not created such exception in breach of its obligation under Section 5.1, Seller shall have the right, but not the obligation, to cure and cause such disapproved exception to be deleted from the supplemental report by delivering written notice to Buyer and Escrow Agent indicating that Seller will eliminate such exception(s) prior to the Close of Escrow. If Seller delivers such written election to cure disapproved exceptions within three (3) business days after receipt of Buyer’s notice of disapproval, Seller shall have until the Close of Escrow to complete the cure. If Seller fails to deliver written notice to cure any disapproved exception within such three (3) day period, Seller shall be deemed to have elected not to cure the disapproved exceptions. If Seller does not elect to cure or is deemed to have elected not to cure such disapproved exceptions as described above, Buyer shall elect one of the following, by delivering written notice to Seller and Escrow Agent by 5:00 p.m. within five (5) business days after Seller has elected not to cure such disapproved exceptions or has been deemed not to cure such disapproved exceptions: (i) to waive its objections, take title subject to such disapproved exceptions, which shall be deemed Permitted Exceptions, and proceed to close the Escrow; or (ii)to terminate this Agreement and the Escrow, in which event neither party shall have any furtherrights or obligations hereunder (except for any liability or obligation of Seller or Buyer pursuant tothose provisions which survive termination of this Agreement under the express terms of thisAgreement). If Buyer fails to deliver written notice of its election prior to the applicable deadline,Buyer will be deemed to have elected to waive its objections as described in (i) above.Notwithstanding the above, if Seller has created such new exception in breach of its obligation under Section 5.1, Seller shall be in default unless it causes such exception to be deleted from thesupplemental report or Title Policy prior to the Close of Escrow. ARTICLE 6 PRE-CLOSING MATTERS 6.1 Inspection of Property. From and after the Effective Date, Seller shall make available to Buyer reasonable access to the Property during reasonable business hours and with reasonable advance notice to Seller for Buyer's inspection, investigation, and approval, in Buyer's sole discretion, and at Buyer’s sole cost and expense, the physical, geological, and environmental condition and use of the Property, including without limitation, the availability of access, utility services, zoning, environmental risks, engineering, and the soil conditions. Buyer agrees to indemnify Seller and to hold Seller, Seller's agents and employees, and the Property harmless from any losses, costs, damages, claims, or liabilities, including but not limited to, mechanics' and materialmen's liens and attorneys’ fees, arising in connection with Buyer's entry upon the Property under this Section 6.1. 6.2 Delivery of Documents. Seller will deliver to Buyer copies of the following documents with respect to the Property within two (2) days after the Effective Date: 6.2.1 Project Documents. Any studies, reports, surveys, and documents for the Property that are in Seller’s possession (collectively, the “Project Documents”). ARTICLE 7 REPRESENTATIONS AND WARRANTIES 7.1 Warranties of Parties. 7.1.1 Seller's Warranties. Seller represents and warrants as of the date hereof: (a) Seller is a municipal water district formed under the Municipal Water District Act of 1911, duly formed, existing and in good standing under the laws of the State of California; Seller has full legal right, power and authority to execute and fully perform its obligations under this Agreement pursuant to its governing instruments; and the persons executing this Agreement and other documents required hereunder on behalf of Seller are the duly designated agents of Seller and are authorized to do so. (b) To the best of Seller’s knowledge and except as described in the Project Documents, the Property does not contain any Hazardous Materials and does not have located under it, nor has there ever been, any underground storage tanks. (c) Seller has received no notice from any governmental authority and has no knowledge of any pending or threatened (i) zoning, building, fire, or health code violations or violations of other laws or governmental regulations concerning the Property or the operation of the Property that has not previously been corrected or disclosed in writing to Buyer; and (ii) condemnation of the Property or any part of the Property or special assessment regarding same. (d) To the best of Seller's knowledge, no legal actions are pending or threatened against the Property. (e) Sale of the Property will not violate any court order or an order of any governmental agency having jurisdiction over the Property or the Seller, or both. 7.1.2 Buyer's Warranties. Buyer represents and warrants as follows: (a) Buyer is a limited liability company, duly formed, existing and in good standing under the laws of the State of Delaware; Buyer has full legal right, power and authority to execute and fully perform its obligations under this Agreement pursuant to its governing instruments, without the need for any further action; and the persons executing this Agreement and other documents required hereunder on behalf of Buyer are the duly designated agents of Buyer and are authorized to do so. ARTICLE 8 BROKER’S COMMISSIONS (intentionally deleted) ARTICLE 9 (intentionally deleted) ARTICLE 10 PRORATIONS 10.1 Prorations. The following items shall be prorated, as applicable, on a per diem basis up to and including the Closing Date: 10.1.1 All non-delinquent property taxes and installments of special assessments due and payable in the calendar year of Closing, based upon the most recent tax information; and 10.1.2 Assessments payable pursuant to any covenants, conditions, or restrictions affecting the Property. 10.2 Method. All prorations shall be made on the basis of a 30-day month and a 360-day year, unless the parties otherwise agree in writing. If either party receives, afterClose of Escrow, a supplemental tax assessment based upon the new construction or achange in ownership occurring prior to the Closing Date, then, within thirty (30) days after receipt, the parties shall prorate said supplemental assessment outside of Escrow (but asof the Closing Date) and make any appropriate payments. ARTICLE 11 COSTS & FEES 11.1 Costs. Seller will pay (i) Documentary Transfer Tax, in the amount Escrow Agent determines to be required by law; (ii) the premium for the CLTA Title Policy defined and discussed in Section 17.1.2 below; and (iii) one- half (1/2) of Escrow Agent’s fee. Buyer will pay (i) one-half of (1/2) Escrow Agent’s fee; (ii) usual Buyer’s document-drafting charges; and, if applicable, (iii) the policy premium increase for an ALTA Title Policy discussed in Section 17.2 below and any endorsements requested by Buyer and (iv) all recording charges. ARTICLE 12 RISK OF LOSS 12.1 Buyer’s Rights. If the Property is damaged by fire or other casualty prior to the Closing Date, Buyer may either (i) terminate this Agreement, or (ii) proceed to close this transaction, without reduction in the Purchase Price, and have Seller assign and transfer to Buyer on the Closing Date all of Seller’s right, title, and interest to any insurance proceeds paid or payable to Seller under the policy covering the damage and pay to Buyer the amount of Seller’s deductible under the insurance policy. ARTICLE 13 CONDEMNATION 13.1 Condemnation. If between the Effective Date and the Closing Date, any condemnation or eminent domain proceedings are commenced or threatened that might result in the taking of any part of the Property, Buyer may either: (a) terminate this Agreement by written notice to Seller; or (b) proceed with the Closing and have Seller assign to Buyer all of Seller's right, title, and interest to any award made for the condemnation or eminent domain action. 13.2 Notice. Immediately after Seller obtains notice of the commencement of or the threatened commencement of eminent domain or condemnation proceedings, Seller shall notify Buyer in writing. Buyer shall then notify Seller, within thirty (30) calendar days of Buyer's receipt of Seller's notice, whether Buyer elects to terminate this Agreement in accordance with Section 13.1(a) above. Failure by Buyer to respond within such thirty (30) calendar day period shall be deemed to be an election by Buyer to terminate this Agreement in accordance with such Section 13.1(a) above. ARTICLE 14 (intentionally deleted) ARTICLE 15 NOTICES 15.1 Notice. All notices under this Agreement shall be in writing and sent by (a) certified or registered mail, return receipt requested, in which case notice shall be deemed delivered three (3) business days after deposit, postage prepaid in the United States Mail, (b) by a nationally recognized overnight courier such as Airborne Express, or Federal Express, in which case notice shall be deemed delivered one (1) business day after deposit with that courier, or (c) by personal delivery, in which case notice shall be deemed delivered upon such date of delivery, as follows: Buyer’s Address For Notice: With Copies To: CH REALTY X-ELC OTAY MESA BUSINESS PARK, L.P. 11622 El Camino Real, Suite 100 San Diego, CA 92130 Attention: Mr. Brig Black E-Mail: brig@elevation-land.com The Law Office of Cynthia L. Eldred, APC1013 White Oak Avenue Maryville, TN 37803 Attention: Cynthia L. Eldred, Esq. E-Mail: cindy@eldredlaw.com Seller’s Address for Notice: With Copies To: ARTICLE 16 ASSIGNMENT 16.1 Assignment. Either party shall have the right to assign its rights and obligations under this Agreement only with the prior written consent of the other party, which consent shall not be unreasonably withheld. To the extent a party assigns its obligations hereunder, the assignee shall assume the assigning party’s warranties, representations, and obligations under this Agreement and under any additional escrow instructions, in writing and such assignee is bound by all approvals previously given, if any. ARTICLE 17 THE CLOSING 17.1 Closing. Escrow Agent shall close the Escrow on the Closing Date by (i) filing for record the Grant Deed, such other documents as may be necessary to procure the Title Policy (as hereinafter defined), and Seller’s Easement described in Section 5.3 above, and (ii) delivering funds and documents as set forth in this Agreement IF AND ONLY IF each of the following conditions has been satisfied: 17.1.1 Delivery of Funds. All funds and instruments described in Section 3.5 and Section 3.6 have been delivered to Escrow Agent. 17.1.2 Procurement of Title Policy. Escrow Agent has procured the Title Company's CLTA Standard Owner's Policy (the "Title Policy"), with liability in the amount of the Purchase Price, ensuring that the fee title to the Property vests in Buyer subject only to the Permitted Exceptions. 17.1.3 Conditions. The conditions to closing set forth in Section 4.2.1 have been satisfied or waived. 17.2 Title Insurance. Buyer may, at Buyer's option, direct the Escrow Agent to obtain an ALTA Title Extended Policy or to issue additional title insurance endorsements if Buyer pays for the extra cost of such additional endorsements for such ALTA Title Policy over and above what would have been the cost of the CLTA Policy described above, provided that obtaining an ALTA Title Policy or endorsements is feasible and will not delay the Close of Escrow. Notwithstanding Buyer's exercise of this option to obtain an ALTA Title Policy or additional title insurance endorsements, the Title Company's refusal to issue an ALTA Policy with liability in the amount of the Purchase Price or the requirement that additional exceptions to such ALTA coverage should be shown shall not be a condition to Closing or constitute grounds for Buyer's refusing to purchase the Property or any claim for damages or reduction in the Purchase Price. Buyer shall be solely responsible, at his sole cost and expense, for timely obtaining an ALTA survey prior to Close of Escrow. 17.3 Termination. If Escrow Agent cannot close the Escrow on or before the Closing Date, it will nevertheless close the same when all conditions (except as to time) have been met unless, after the Closing Date and prior to the Close of Escrow, Escrow Agent receives a written demand for termination from a party not then in default hereunder. Said written demand shall also concurrently be delivered to the other party hereto. The making of such demand shall be optional, not mandatory; no delay in the making of such demand shall affect the rights hereunder of the party making same. In the event such demand is made upon Escrow Agent, Escrow Agent shall return to each party the funds and/or documents theretofore delivered to it by such party unless Escrow Agent decides the protection of its interests requires otherwise. Such return of funds and/or documents shall not affect the right of either party to enforce any remedy that may otherwise be available against the other party for breach of this Agreement. If Escrow is terminated as provided herein, Buyer shall promptly, upon such termination, deliver to Seller copies of all of the documents previously delivered by Seller to Buyer. ARTICLE 18 GENERAL PROVISIONS 18.1 Governing Law. This Agreement shall be interpreted and construed in accordance with California law. 18.2 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 18.3 Captions and Pronouns. The captions in this Agreement are inserted for convenience of reference and in no way define, describe, or limit the scope or intent of this Agreement or any of the provisions of this Agreement. Variations in pronouns have no bearing on the substantive effect of any provision of this Agreement. The masculine, feminine, or neuter, singular or plural, may be used interchangeably as the context expressly, or by necessary implication, may require. 18.4 Binding Effect. Subject to Section 16.1 above, this Agreement shall be binding upon and inure to the benefit of the parties and their respective legal representatives, successors, heirs, and permitted assigns. 18.5 Modifications; Waiver. No waiver, modification, amendment, discharge, or change of this Agreement shall be valid unless it is in writing and signed by the party against which the enforcement of the modification, waiver, amendment, discharge, or change is sought. 18.6 Entire Agreement. This Agreement contains the entire agreement between the parties relating to the transactions contemplated by this Agreement and all prior or contemporaneous agreements, understandings, representations, or statements, oral or written, are superseded. 18.7 Partial Invalidity. Any provision of this Agreement, which is unenforceable, invalid, or the inclusion of which would adversely affect the validity, legality, or enforcement of this Agreement shall have no effect, but all the remaining provisions of this Agreement shall remain in full effect if the rights and obligations of the parties are not materially altered. 18.8 Survival. Except as otherwise expressly provided in this Agreement, all representations, warranties, covenants, agreements, indemnities and other obligations of Seller and Buyer in this Agreement shall survive the Closing of this transaction. 18.9 No Third-Party Rights. Nothing in this Agreement, express or implied, is intended to confer upon any person, other than the parties to this Agreement and their respective successors and assigns, any rights, or remedies. 18.10 Time of Essence. Time is of the essence in this Agreement. 18.11 Attorneys’ Fees. If any legal action or any other proceeding, including arbitration or an action for declaratory relief, is brought to enforce this Agreement or because of a dispute, breach, default, or misrepresentation in connection with this Agreement, the prevailing party shall be entitled to recover reasonable attorneys’ fees and other costs incurred in that action or proceeding, in addition to any other relief to which that party may be entitled. Prevailing party shall include, without limitation, (a) a party who dismisses an action in exchange for sums allegedly due; (b) the party that receives performance from the other party alleged to have breached a covenant or that receives a desired remedy, where these things are substantially equal to the relief sought in an action; or (c) the party determined to be the prevailing party by a court of law. 18.12 Definitions. Definitions of words and phrases used in this Agreement: 18.12.1 Cash. "Cash" means (I) United States currency, or (ii) cashier’s check(s), currently dated, payable to Escrow Agent and honored and paid upon presentation for payment on or prior to the Closing Date, or (iii) an amount credited by wire transfer into an Escrow Agent's bank account, or (iv) if Escrow Agent, in its sole discretion so requires, check(s) in the form required by clause (ii) drawn on such bank(s) as Escrow Agent may require. 18.12.2 Party. "Party" or "parties" means Buyer and/or Seller, as the context indicates. 18.12.3 Escrow. "The escrow" means the escrow created hereby. 18.12.4 Close of Escrow. "The Close of Escrow" means the time Seller's Grant Deed is filed for record. 18.12.5 Opening of Escrow. "The opening of the escrow" means the date Escrow Agent signs the "Consent of Escrow Agent" attached hereto. 18.12.6 County. “County” means the County of San Diego. 18.12.7 Hazardous Materials. "Hazardous Materials" means: (a) Those substances included within the definitions of "hazardous substance," "hazardous waste," "hazardous material," "toxic substance," "solid waste," or "pollutant or contaminant" in the Comprehensive Environmental Response, Compensation and Liability Act of 1980 [42 USCS §§9601 et seq.]; the Resource Conservation and Recovery Act [42 USCS §§6901 et seq.]; the Clean Water Act [33 USCS §§ 2601 et seq.]; the Toxic Substances Control Act [15 USCS §§9601 et seq.]; the Hazardous Materials Transportation Act [49 USCS §§1801 et seq.] or under any other Environmental Laws; (b) Those substances listed in the United States Department of Transportation Table [49 CFR 172.101], or by the Environmental Protection Agency, or any successor agency, as hazardous substances [40 CFR Part 302]; (c) Other substances, materials, and wastes that are or become regulated or classified as hazardous or toxic under federal, state, or local laws or regulations; and (d) Any material, waste, or substance that is: (I) a petroleum or refined petroleum product, (ii) asbestos, (iii) polychlorinated biphenyl, (iv) designated as a hazardous substance pursuant to 33 USCS §1321 or listed pursuant to 33 USCS §1317, (v) a flammable explosive, or (vi) a radioactive material. 18.12.8 Laws. “Laws” means all governmental laws, statutes, ordinances, resolutions, rules, regulations, restrictions, and requirements applicable to the Property, whether now or hereafter in effect, and as amended or supplemented from time to time. 18.12.9 Environmental Laws. “Environmental Laws” means all laws applicable to the physical condition of the Property or the presence of any substance thereon, including without limitation the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. Sections 9601 et seq.), the Resource Conservation and Recovery Act (42 U.S.C. Section 6901 et seq.), the Clean Water Act (33 U.S.C. Sections 466 et seq.), the Safe Drinking Water Act (14 U.S.C. Sections 300f et seq.), the Hazardous Materials Transportation Act (49 U.S.C. Sections 5101 et seq.), the Toxic Substances control Act (15 U.S.C. Sections 2601 et seq.), the California Hazardous Waste Control Act (California Health and Safety Code Section 25100 et seq.), the California Hazardous Substances Account Act (California Health and Safety Code Sections 25300 et seq.), the Safe Drinking Water and Toxic Enforcement Act (“Proposition 65”)(California Health and Safety Code Sections 25249.5 et seq., and the Porter-Cologne Water Quality Control Act (California Health and Safety Code Sections 13000 et seq.), and any similar federal, state or local laws, all regulations and publications implementing or promulgated pursuant to the foregoing, as any of the foregoing may be amended or supplemented from time to time. 18.13 Possession. Possession of the Property is to be given to Buyer on the Closing Date. The parties have executed this Agreement as of the date first above written. SELLER: OTAY WATER DISTRICT, a municipal water district formed under the Municipal Water District Act of 1911 By: Jose Martinez, General Manager Approved as to Form: General Counsel BUYER: CH Realty X-ELC I Otay Mesa Business Park, L.P., a Delaware Limited Liability Company By: ELC Otay Business Park GP, LLC, A Delaware limited liability company, its general partner By: Its: CONSENT OF ESCROW AGENT The undersigned Escrow Agent hereby agrees to (i) accept the foregoing Agreement and Instructions, (ii) be escrow agent under said Agreement and Instructions, and (iii) be bound by said Agreement and Instructions in the performance of its duties as escrow agent; provided, however, the undersigned shall have no obligations, liability or responsibility under (i) this Consent or otherwise, unless and until said Agreement and Instructions, fully signed by the parties, has been delivered to the undersigned, or (ii) any amendment to said Agreement and Instructions unless and until the same shall be accepted by the undersigned in writing. Dated: FIRST AMERICAN TITLE INSURANCE COMPANY By: EXHIBIT "A" LEGAL DESCRIPTION PORTION OF APN 648-070-37 The Easterly 30.00 feet of the Southwest Quarter of Section 31, Township 18 South, Range 1 East, San Bernardino Meridian in the County of San Diego, State of California, according to United States Government Survey approved September 11, 1879, as described in Final Order of Condemnation filed in the Office of the County Recorder of San Diego County October 13, 1972 as File No. 309434 of Official Records. Excepting therefrom the Northerly 1512.00 feet. Also excepting therefrom that portion lying Southerly of a line being distant thereon North 00°15'52" West 519.79 feet from the South Quarter Corner of said Section 31 and perpendicular to the Easterly line of said Southwest Quarter. Contains 18,708 Square Feet or 0.43 Acres, more or less �Cref � /tl [1:;>�1.-Date PLS 8050 END OF LEGAL DESCRIPTION Page 1 of 1 PURCHASE AND SALE AGREEMENT AND ESCROW INSTRUCTIONS INJW 4l/43!E(Ca 34l AIRWAY ROAD G EASTERLY 30.00' 6=90'00'00" SI: STEVENS CRESTO ENGINEERS 9665 Chesapeake Dr, Ste 200 San Diego, CA 92123 858.694.5660 stevenscresto.com SCE NO 20022.02 E 1-- EXHIBIT "B" LEGEND SHEET 1 OF 1 � SUBJECT PROPERTY: PORTION OF APN 648-070-37CONTAINS 18,708 SQ.FT. OR 0.43 ACRES, MORE OR LESS 1 11 1 CENTER OFII I SECTION 31 @ 30' WIDE EASEMENT FOR INGRESS AND EGRESS PER FILE NO. 85-136871 REC. APRIL 22, 1985, OF O.R. @ 30 ' WI DE EASEMENT FOR INGRESS AND EGRESS PER GRANT DEED, FILE NO. 2005-1033150 REC. NOVEMBER 30, 2005, O.R. 11 i I 50' II� @ 20' WIDE EASEMENT TO OTAY MUNICIPAL WATER DISTRICT PER FILE NO. 93912 REC. JUNE 5. 1968, O.R. II I I I �f)�@ I (6�� =(0)1(0)=33� 30' WIDE EASEMENT TO OTAY MUNICIPAL WATER DISTRICT PER FILE NO. 74-051081 REC. FEBRUARY26, 1974, O.R. 1111 20·?© I� E '� ':IIJ I _ '-J'-J © 20' WIDE EASEMENT TO OTAY MUNICIPAL WATERDISTRICT PER FILE NO. 2033 REC. JANUARY 6,1970, O.R. 20' WI DE IRREVOCABLE OFFER OF OED I CAT I ON FORSEWER LINES TO THE COUNTY OF SAN DIEGO PER FILE111 I EAST LINE OF 11 I I SOUTHWEST 1 / 4 I II Il l III I _J OF SECT ION 31 II 20· 11- . ©I� II SOUTH 1/4CORNER OF SECTION 31 NO. 2011-0492242 REC. SEPTEMBER 22, 2011, O.R. @ EASEMENT FOR COUNTY HIGHWAY TO THE COUNTY OF SAN DIEGO PER FILE NO. 2012-0540244 REC. SEPTEMBER 7, 2012, O.R. @ 49' WIDE IRREVOCABLE OFFER OF OED I CA TI ON FOR PUBLIC HIGHWAY PER FI LE NO. 2015-0332936 REC. JUNE 26, 2015, 0.R. 0 50' WIDE EASEMENT FOR THE RIGHT TO EXTENDDRAINAGE STRUCTURES, EXCAVATION AND EMBANKMENTSLOPES FOR PUBLIC HIGHWAY PER FILE NO. 2015-0332936 REC. JUNE 26, 2015, O.R. 0 200 I I-400 1 SCALE: 1''=400' 800 I PROPERTY ACQUISITION DATE: 2022 05 02 PORTION OF SOUTHWEST 1/4 OF SECTION 31 TOWNSHIP 18 SOUTH, RANGE 1 EAST, S.B.M. PORTION OF APN 648-070-37 DWG: 20022 OWD PROP ACQ DRAWN BY: AAH CHECKED BY: JGC PURCHASE AND SALE AGREEMENT AND ESCROW INSTRUCTIONS EXHIBIT C JOINT USE AGREEMENT – OTAY WATER DISTRICT COUNTY OF SAN DIEGO TRACT NO. 5405-1 This Agreement, entered into this ____ day of _________________, 2022___ by and between the County of San Diego, hereinafter "County", and the Otay Water District, hereinafter "District". Whereas, the District is the owner of the following described easement recorded October 13, 1972, as File No. 334824 of Official Records of San Diego County and described as: the Easterly 30 feet of the Easterly ½ of the Southwest quarter of Section 31, Township 18 South, Range 1 East, San Bernardino Base and Meridian, County of San Diego, State of California. Whereas, County is accepting certain easements which may extend across and through portions of the above described District easement; and Whereas, County and District desire to enter into this Agreement to provide for the rights and obligations of each of the parties in their joint use of the areas common to their respective easements; Now, therefore, County and District agree as follows: 1. In the event that the future use or alteration of said easement by County shall at any time necessitate a rearrangement, relocation or reconstruction of Districts public improvements, the same shall be performed at the cost of County, and if the acquisition of additional required easements or property pursuant thereto is required, the same shall be obtained by County in form satisfactory to the District, or by the District with written consent of the County, at the cost of the County. 2. All uses of said easement area by either party shall be such as will not permanently interrupt the use or operation of the facilities therein of the other party. Uses of said areas by either party which temporarily interfere with the use or operation of the facilities therein of the other party will be made only when reasonably necessary and will be promptly terminated as soon as the necessity therefor no longer exists. 3. If the County or the District shall hereafter vacate or abandon, in whole or in part, said easements or properties the County or District shall, in the vacation or abandonment proceedings, reserve to the other all rights owned by it prior to the execution of this certification. 4. The Otay Water District easements existing on this map will be recognized as senior to all other dedications on the face of this map. 5. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of both parties. 6. Each party shall hold harmless, and indemnify the other party and its directors, officers, agents and employees against any and all loss, liability, damage, or expense, including any direct, indirect or consequential loss, liability, damage, or expense, but not including attorneys' fees unless awarded by a court of competent jurisdiction, for injury or death to persons, including employees of either party, and damage to property, including property of either party, arising out of or in connection with intentional, willful, wanton, reckless or negligent conduct regarding use of the easement area. However, neither party shall be indemnified hereunder for any loss, liability, damage, or expense resulting from its sole negligence or will conduct. In witness whereof, the parties have caused this Agreement to be executed as of the date first above written by their properly authorized officials. OTAY WATER DISTRICT BY: ___________________________ Jose Martinez General Manager COUNTY OF SAN DIEGO BY: ___________________________ Name: Title: STAFF REPORT GENERAL MANAGER’S RECOMMENDATION: That the Board authorize the General Manager to issue purchase orders of up to the budgeted amount, and any inflation adjustments in addition to the budgeted amounts, when pricing and vehicles are available, for the purchase of seven fleet vehicles and one excavator, as described below, in an overall cost of $882,500.00: •Two (2) dump trucks, one (1) class 7 and one (1) commercial class 8, with automatic transmission of up to budgeted amountof $200,000.00 each, for a total of $400,000.00. •Two (2) electric or hybrid vans of up to budgeted amount of $60,000.00 each for a total of $120,000.00. •Two (2) compact pick-up trucks up to budgeted amount of $25,000.00 each for a total of $50,000.00. •One (1) class 5 Valve Exercising Truck up to budgeted amount of $200,000.00. •One (1) compact excavator with hydraulic hammer and bucket in the amount of $112,500. Staff also recommends to surplus Units #206 and #199, Utility Dump Trucks. EXCAVATOR, AND TO DECLARE UNITS #206 AND #199 UTILITY DUMP TRUCKS AS SURPLUS AUTHORIZE THE PURCHASE OF SEVEN FLEET VEHICLES AND ONE SUBJECT: SUBMITTED BY: Charles Mederos, Utility Services Manager October 5, 2022 DIV.NO. All PROJECT: P2282, P2286, and R2162 MEETING DATE: Regular Board TYPE MEETING: Andrew Jackson, Chief Water Operations APPROVED BY: Jose Martinez, General Manager AGENDA ITEM 7 COMMITTEE ACTION: See “Attachment A.” PURPOSE: To obtain Board authorization to purchase seven fleet vehicles and one compact excavator of up to the budgeted amounts, if applicable, include any inflation adjustments, for FY23 or when vehicles are available for purchase, and declare Units #206 and #199, Utility Dump Trucks, as surplus. ANALYSIS: There are seven vehicles and one compactor excavator included in the approved FY23 budget. The window of opportunity to place orders for these vehicles is extremely narrow due to pent-up demand for fleet vehicles. For instance, General Motor’s order banks for most of their light and heavy-duty trucks opened and closed within 72 hours. Should the District wait until pricing becomes available later this calendar year and then seek Board authorization, the District would be locked out of the opportunity to purchase model year 2023 vehicles and have them delivered before the close of the fiscal year. As a remedy to this problem, Sourcewell’s Cooperative Agreement with National Auto Fleet Group (NAFG) allows government agencies to reserve certain vehicles ahead of manufacturers’ pricing without the obligation to purchase. Staff has already reserved two electric vans and will continue to reserve other vehicles listed herein as reservation becomes available. Note: Cooperative/Joint Purchases are authorized under Section 6.2.3 of the Purchasing Manual. These purchases are exempt from the District’s competitive solicitation requirements so long as the contracts, schedules, and agreements are solicited in a manner substantially consistent with the District’s purchasing policies. Sourcewell is a State of Minnesota’s local government unit and service cooperative created under the laws of the State of Minnesota that offer cooperative procurement solutions to government entities. Based on the reasons previously mentioned, it is imperative to seek pre-authorization from the Board to secure the purchases of the vehicles and the excavator as soon as possible. In addition, staff would like to take advantage of the early credit opportunity as written under California Air Resources Board (CARB) for the Advanced Clean Fleets Regulations for Public Fleets per the California Governor’s Executive Order N-79-20. The District will have more flexibility of buying a combustion engine vehicle if an electric vehicle is not available in 2024. The requested seven vehicles (Attachment B) will replace the following units and will add one vehicle for the valve exercising crew and one compact excavator. The non-commercial vehicles are part of the vehicle replacement program of seven years and/or 100,000 miles for non-commercial vehicles: • #206 (2008 Ford F-650 Dump Truck Utility Maintenance – 12,145 miles). This vehicle is a Utility Crew Dump Truck and is 14 years old and in need of replacement. • #199 (2008 Sterling Dump Truck Utility Maintenance – 72,018 miles). This vehicle is a Commercial Utility Crew Dump Truck and is 14 years old and in need of replacement. • #185 (2008 Ford F-250 Electricians – 77,166 miles). This vehicle is utilized by electricians to perform field maintenance of preventive and corrective electrical work. • #183 (2008 Ford F-250 Electricians – 65,753 miles). This vehicle is utilized by electricians to perform field maintenance of preventive and corrective electrical work. • #176 (2009 Toyota Matrix Treatment Plant/Lab – 83,519 miles). This vehicle is utilized by Treatment Plant Laboratory staff to perform water quality sampling throughout the District. • #151 (2004 Ford F-150 SCADA/Pump Electrical Supervisor – 74,102 miles). This vehicle is utilized by SCADA/Pump/Electrical Supervisor for operation and inspection of the SCADA and Pump Electrical Section. It is essential for the District to surplus Units #206 and #199 to maintain critical water and sewer services since the District requires reliable vehicles for emergency response with the capacity to perform repairs in a timely manner. The dump trucks are used to transport the District’s heavy construction equipment including backhoes, skid steers, shoring trailers, among other large equipment. Based on system operation evaluation of workflow and the current market uncertainty of vehicle stock, it is recommended to purchase two new dump trucks and have Units #206 and #199 declared as surplus. The Toyota Matrix and Ford F-150 for the SCADA/Pump/Electrical Supervisor are being replaced with a compact pick-up, possibly a Ford Maverick Hybrid for the following reasons: • Since the Toyota Matrix was discontinued in 2014, staff is pursuing the Ford Maverick Hybrid due to the combined average of 37 miles per gallon (MPG) and the ability to use its battery to obtain better fuel economy of up to 42 MPG, while the Toyota Matrix has 26 MPG and the 2023 Ford Rangers estimated MPG is 20. • The Ford Maverick has a higher ground clearance of 8.3 inches while the Toyota Matrix has ground clearance of 5.8 inches. • The Ford Maverick’s cargo bed can be used to transport light duty items to job sites. The Ford F-250s are being replaced with electric vans for the following reasons: • The California Governor’s Executive Order N-79-20, as written by CARB for the Advanced Clean Fleet Regulation for Public Fleets taking effect, as written, on January 2024, will require public fleets to have 50 percent of the class 2-A vehicles and above be Zero Emissions Vehicle (ZEV) or Near Zero Emissions Vehicle. The District will obtain an early credit if an electric vehicle is purchased before the regulation takes effect and it will also provide more flexibility to purchase a combustion engine commercial vehicle in 2024 if an electric option is not available. Due to the valve replacement program, it is recommended to add an additional valve exercising truck, fully outfitted, and a compact excavator to expedite the valve replacements. These expenses are budgeted and approved under FY23. Once the purchases are secured, staff will inform the Board of the status and costs of the vehicle purchases. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The total budgeted cost for the seven vehicles is $770,000.00 which will be charged against the Vehicle Capital Purchases CIP P2282 and R2162. The total budgeted cost for the compact excavator is $112,500.00 which will be charged against the Vehicle Capital Purchases CIP P2286. The Finance Department has determined that 100 percent of the funds are available to cover the cost of the Capital Purchases. STRATEGIC GOAL: Operate the system to meet demand 24 hours a day, seven days a week. LEGAL IMPACT: None. Attachment A - Committee Action Attachment B - Photos of Vehicles ATTACHMENT A SUBJECT/PROJECT: AUTHORIZE THE PURCHASE OF SEVEN FLEET VEHICLES AND ONE EXCAVATOR, AND TO DECLARE UNITS #206 AND #199 UTILITY DUMP TRUCKS AS SURPLUS COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee reviewed this item at a meeting held on September 20, 2022 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. ATTACHMENT B John Deere 60G Compact Excavator Ford E-Transit Two (2) for Electricians Replacing Units 183 and 185 Ford Maverick One (1) SCADA/Pump Electrical Replacing Unit 151 and One (1) for Treatment Plant/Lab Replacing Unit 176 Unit 199 2008 Sterling L 9500, 72,018 miles To be replaced with a Class 8 Dump truck Unit 206 2008 Ford F-650, 12,145 miles To be replaced with a Class 7 Dump truck Ford F-550 Valve Exercising Truck Unit 176 Unit 185, 183 is identical to 185 Unit 151 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: October 5, 2022 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: FY22 YEAR-END REPORT OF 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 Plan for FY22. ANALYSIS: Summary Developed in 2018, the strategic plan, FY19 through FY22, achieved a high success rate for accomplishing defined objectives and performance measures. During this time, the District embarked on a structural redesign to better align the workforce with our customer needs. As a result, the plan focused on several significant areas, including technology, workforce and culture, communications, and financial stability. This report details the year-end results for the fourth and final year of the plan. AGENDA ITEM 8 Objectives – Target 90% Strategic Plan objectives are designed to ensure the District is executing defined mission-developed strategies and implementing appropriate changes necessary to guide the agency, meet new challenges, and positively adapt to change. FY22 year-end results are above target at 98%, with 51 of 52 active items completed or on schedule, and one (1) objective is on hold. Objective on Hold (1): FINANCIAL Strategy #3: Enhancement of business systems. Objective: Evaluate enhancements to, or replacement, of the rate model program. This objective is on hold pending the District’s Enterprise Resource Planning (ERP) replacement project. Key Performance Indicators (KPI’s) – Target 75% KPI’s are designed to monitor the District’s day-to-day performance. These items assess the efficiency and effectiveness of essential operational services. The District’s overall goal of 75% is considered “on target”. For FY22, year-end results are above target at 88%, with 37 of 42 items achieving the desired level or better. 0 5 10 15 20 25 30 35 40 45 51 0 1 0 On Schedule/Completed Behind On Hold Not Started 51 of 52 Objectives are Completed or On Schedule (98%) 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 KPI’s Not on Target (5): Overtime Percentage Target: Less than 100% of the budgeted overtime per quarter and annually. Year-to-date overtime expenditures amounted $193,200 vs. the budgeted amount of $173,700. Fourth quarter results were below target ($39,500 actuals vs. $41,600 budgeted); however, the year-to-date overtime overage was primarily due to main breaks and COVID-19. Injury Incident Rate Target: No more than 4.1 injury incidents per 200,000 hours worked annually. 0 5 10 15 20 25 30 35 40 37 5 On Target Not on Target 37 of 42 Key Performance Indicators are On Target (88%) There were seven (7) recordable injuries for calendar year 2021. This resulted in a 5.1 injury incident rate. To decrease the number of injuries, the Safety and Security Specialist coordinated additional ergonomic training in September 2022. Potable Water Distribution System Integrity Target: No more than 16 leaks and breaks per 100 miles of distribution piping annually. Year-to-date, there were a total of 181 leaks and nine (9) breaks with a rate of 18.01 leaks and breaks per one hundred miles of distribution piping. Sewer Overflow Rate (AWWA) Target & AWWA: Zero (0) overflows per quarter and annually. There were zero (0) overflows in the third and fourth quarter; however, the year-to-date target was not met due to two (2) sewer overflows in the first quarter: 1. Category 2 Sewer Spill Overflow (SSO) event on July 26, 2021: This overflow was due to a hole in a one-inch (1”) copper air vac service line on the force main, located on Steele Canyon Road. This main pumps sewage from Par Four Drive to Willow Glen Drive in El Cajon. A total of 1,500 gallons of sewage were recovered. 2. Category 3 SSO event on September 15, 2021: This overflow was due to a blockage at manhole MM-331-039 located on Singer Lane in Spring Valley. A total of 200 gallons of sewage were recovered. Employee Turnover Rate Target: Less than 5% turnover annually. There were 11 voluntary terminations for fiscal year 2022 resulting in a 7.97% turnover. Next Steps Staff will focus on the recently approved FY23-26 Strategic Plan objectives, key performance indicators, and emerging trends. Committee Reports – Slideshow The Strategic Plan year-end results are presented to both the Finance, Administration, and Communications Committee, and the Engineering, Operations, and Water Resources Committee with a specific focus on the most relevant information for each Committee (see “Attachment B”). The Strategic Plan is also available on the District’s website. 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 ATTACHMENT A SUBJECT/PROJECT: FY22 YEAR-END REPORT OF THE DISTRICT’S FY19-22 STRATEGIC PLAN COMMITTEE ACTION: The Finance, Administration, and Communications Committee, and the Engineering, Operations, and Water Resources Committee met on September 19 and 20, 2022, respectively, to review this item. The Committee supports presentation to the full Board. 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. OTAY WATER DISTRICT STRATEGIC PLAN FY2022 Year-End Report 2019 2022 ATTACHMENT B 168 Total Participants American Water Works Association (AWWA) Utility Benchmarking Program Evaluation of Advanced Metering Infrastructure (AMI) technology Optimize Global Positioning System (GPS) fleet assignment and routing operation Streamline contract and purchase order management and lifecycle Organizational Development Best Practices Organizational Best Practices Index (%): OWD 95.7% •Strategic Planning Efforts •Long-term Financial Planning •Risk Management •Asset Management •Succession Planning Customer Relations Practices Call Center Indicator: >75% Percentile •Average TALK time •Average WAIT time •Abandoned Call Ratio •Billing Accuracy NOTABLE COMPLETED OBJECTIVES 2 (21 from California) 90% Total 52 On Schedule or Completed 51 ON SCHEDULE COMPLETED BEHIND SCHEDULE ON HOLD OBJECTIVES 1 Objective 1/52 = 2% TR E N D S YEAR-END 2022 51 Objectives 51/52 = 98% Overall Target 94% 88% 93%95%94% 82%86% 98% 50% 60% 70% 80% 90% 100% FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Year-End Target On Hold 1 3 = COMPLETED Tenille Otero Communications Officer 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 Assess and enhance communications tools and increase online presence and social media exposure Assess communication tools (social media presence) 4 CU S T O M E R 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 Enhancement of business systems Enterprise Resource Planning (ERP) validation and replacement evaluation 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 structure5 = COMPLETED = ON HOLD Roberto Marquez Reclamation Plant Operator II FI N A N C I A L Kevin Cameron Sr. Civil Engineer 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 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 6 = COMPLETED FI N A N C I A L Optimize meter activity operations Evaluation of Advanced Metering Infrastructure (AMI) technology 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 Customer Information System (CIS)/ Customer Relationship Management (CRM) validation and replacement evaluation 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 7 = COMPLETED Kim Chavez Meter Maintenance Worker IN T E R N A L B U S I N E S S P R O C E S S 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 Enhance SCADA system services via SCADA roadmap project Prioritize 14 strategic project/initiatives, recently developed Enhancement of enterprise geographic data Deploy ArcGIS Pro for 3D analysis Evaluate the use of Drone2Map technology for asset, field inspections, and condition assessment Migrate Geographic Information System (GIS) data structure from geometric network to utility dashboard Standardization of District asset data and collection process 8 = COMPLETED Bruno Burgin Sr. SCADA Instrumentation Technician IN T E R N A L B U S I N E S S P R O C E S S (c o n t ’ d ) 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 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 9 = COMPLETED = ON SCHEDULE Omar Sanchez Equipment Mechanic II IN T E R N A L B U S I N E S S P R O C E S S (c o n t ’ d ) Left to right: Guillermo Rojas (Utility Worker), Peter Grable (Water System Operator), and Leo Lopez (Utility Worker) Optimize District’s Hazardous Waste Operations and Emergency Response (HAZWOPER) Confined Space Rescue Team Certify program at Industry State Level and under the Incident Command System, streamline chlorine gas and confined space rescue training, operations, and response and convert inventory lists and equipment logs to electronic form Enhance leadership/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 10 = COMPLETED = ON SCHEDULE IN T E R N A L B U S I N E S S P R O C E S S (c o n t ’ d ) LE A R N I N G A N D G R O W T H KEY PERFORMANCE INDICATORS TR E N D S YEAR-END 2022 Overall Target 75% Total 42 Reported Quarterly 35 Reported Annually 7 83% 90%88% 95% 83% 90%90%88% 50% 60% 70% 80% 90% 100% FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Year-End Target 37 KPIs 37/42 = 88% ON TARGET NOT ON TARGET 5 KPIs 5/42 = 12% 98.33% 97.84% 98.12%98.00% 98.38%98.43%98.55%98.60% 95% 96% 97% 98% 99% 100% 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target ANSWER RATE TARGET 97% average answer rate per quarter and annually CALCULATION Number of calls answered/Total number of calls 12Pam Castanon Customer Service Rep II 3.69 5.12 3.94 4.20 3.55 3.51 4.50 3.85 0 5 10 15 20 25 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target 75th Percentile Median 25th Percentile POTABLE WATER COMPLIANCE RATE (AWWA | Water Operations)TECHNICAL QUALITY COMPLAINT (AWWA | Customer Relations) TARGET No more than 7.1 complaints per 1,000 customer accounts annually CALCULATION Number of technical quality complaints per year/Number of active accounts per reporting period AWWA BENCHMARK Average of 75th Percentile, 13.1, and Median, 1.1, for population served between 100,001 – 500,000 (Combined Utilities) TARGET 100% of all health-related drinking water standards per quarter and annually CALCULATION Number of days the primary health regulations are met/Number of days in the reporting period AWWA BENCHMARK 100% -75th Percentile for population served between 100,001 –500,000 (Water) 13 100% (Year-End Result for FY 2015 -FY 2022) Laura York Laboratory Analyst 92.20% 89.80% 109.10% 97.40% 104.80% 87.30% 111.00% 103.00% 80% 85% 90% 95% 100% 105% 110% 115% 120% 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target CIP PROJECT EXPENDITURES VS. BUDGET TARGET 95% of budget annually CALCULATION Actual Expenditures/Annual Budget 14 458-1 Reservoir 1.9%1.8% 1.5%1.3% 3.1% 5.6% 4.4% 2.0% 0% 1% 2% 3% 4% 5% 6% 7% 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target CONSTRUCTION CHANGE ORDER INCIDENCE $511.00 $503.00 $517.00 $549.00 $548.00 $545.00 $545.00 $549.00$531.12 $531.12 $540.00 $540.00 $570.00 $552.00 $575.00 $592.00 $450 $470 $490 $510 $530 $550 $570 $590 $610 $630 $650 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target O&M COST PER ACCOUNT TARGET No more than 5% per quarter and annually CALCULATION Cost of Change Orders (not including allowances)/Original construction contract amount (not including allowances) TARGET Less than $592 per account annually (based on Operating budget) CALCULATION Operations O&M/Number of accounts 15 99.81%99.97%99.99%99.98%99.94%99.99%99.99%99.99% 95% 96% 97% 98% 99% 100% 101% 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target 98% 129% 118% 100% 129% 72% 106% 111% 50% 60% 70% 80% 90% 100% 110% 120% 130% 140% 150% 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target BILLING ACCURACY OVERTIME PERCENTAGE TARGET 99.8% billing accuracy per quarter and annually CALCULATION Number of correct bills/Number of bills issued during the reporting period TARGET Less than 100% of budgeted overtime per quarter and annually (based on Operating budget and historical trends; FY22 Overtime budget is $173,700) CALCULATION Actual overtime costs (including comp time)/Budgeted overtime costs 16 8 7 5 6 3 5 5 5 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target SEWER RATE RANKING 10 12 11 3 3 5 5 5 0 2 4 6 8 10 12 14 16 18 20 22 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target WATER RATE RANKING TARGET Bottom 50th percentile for the 22 member agencies in San Diego CALCULATION Ranking for the average monthly water bill among CWA member agencies TARGET Bottom 50th percentile for the 28 sewer service providers in San Diego CALCULATION Ranking for the average monthly bill among sewer service providers in San Diego County 17 168% 171% 200% 236% 165% 188% 272%262% 0% 50% 100% 150% 200% 250% 300% 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target 1241% 371% 838% 0% 200% 400% 600% 800% 1000% 1200% 1400% 2020 2021 2022 Year-End Result Target SEWER DEBT COVERAGE RATIOWATER DEBT COVERAGE RATIO TARGET 150% excluding growth revenue annually CALCULATION Qualified net operating revenues/Debt service requirements 18 TARGET 150% excluding growth revenue annually CALCULATION Qualified net operating revenues/Debt service requirements 100% 78% 85% 100%100%100% 85%83% 0% 20% 40% 60% 80% 100% 120% 140% 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target RESERVE LEVEL 406 426 410 410 408 406 400 410 420 430 440 450 2017 2018 2019 2020 2021 2022 Year-End Result Target ACCOUNTS PER FULL-TIME EMPLOYEE (FTE) TARGET 83% annually CALCULATION Number of reserve funds that meet or exceed fund target levels/Total number of reserve funds TARGET 406 accounts per FTE annually CALCULATION Potable + Recycled + Sewer Accounts/Number of FTEs 19 75.64%77.05%78.67% 80.47% 82.71%83.76% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% 2017 2018 2019 2020 2021 2022 Year-End Result Target FY2017 used as a benchmarking year PERCENT OF CUSTOMERS PAYING BILLS ELECTRONICALLY 2.5% 4.0%4.1% 3.3% 3.6%3.8%3.9%4.0% 0% 1% 2% 3% 4% 5% 6% 7% 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target DISTRIBUTION SYSTEM LOSS TARGET 75% per quarter and annually CALCULATION Number of customers paying bills electronically/Total number of customers TARGET Less than 5% of unaccounted water annually CALCULATION Volume purchased from CWA, City of San Diego customers + volume used by District/Volume purchased from CWA, City of San Diego, and RWCTP production 20 66% 75% 70% 72%74% 77% 66% 72% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target PLANNED POTABLE WATER MAINTENANCE RATIO IN $ 66% 86% 91% 74%74% 70% 55% 74% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target PLANNED RECYCLED WATER MAINTENANCE RATIO IN $ TARGET 66% of all labor costs spent on preventative maintenance per quarter and annually CALCULATION Total Planned Maintenance Cost/Total Maintenance Cost TARGET 70% of all labor costs spent on preventative maintenance per quarter and annually CALCULATION Total Planned Maintenance Cost/Total Maintenance Cost 21 92%92%91% 82% 84% 92% 93% 90% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target PLANNED WASTEWATER MAINTENANCE RATIO IN $ $785.11 $912.56 $1,095.70 $1,165.82 $1,071.66 $996.29 $1,374.69 $869.97 $500 $600 $700 $800 $900 $1,000 $1,100 $1,200 $1,300 $1,400 $1,500 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target DIRECT COST OF TREATMENT PER MGD TARGET 77% of all labor costs spent on preventative maintenance per quarter and annually CALCULATION Total Planned Maintenance Cost/Total Maintenance Cost TARGET No more than $1050 per MGD spent on wastewater treatment annually CALCULATION Total O&M costs directly attributable to sewer treatment/Total volume in MG for one quarter 22 20%20% 33% 20%20%20%20%20% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target LEAK DETECTION PROGRAM 4.4 4.4 4.4 2.9 2.1 5.1 0 1 2 3 4 5 6 7 8 9 10 2017 2018 2019 2020 2021 2022 Year-End Result Target INJURY INCIDENT RATE TARGET 20% of system surveyed for leaks annually CALCULATION Miles of potable pipe surveyed/Total miles of pipe 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 recordable injuries/illnesses x 200,000 average hours worked)/ Total hours employees worked 23 TARGET 99.5% network uptime and availability CALCULATION 3h 39m 8s hours of downtime per month (1d 19h 49m 44s per year) 99.99% 99.50%99.50%99.50%99.50%99.50%99.50% 95% 96% 97% 98% 99% 100% 101% 102% 103% 104% 105% 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target ENTERPRISE TECHNOLOGY SERVICES AVAILABILITY 24 Bill Poulin Database Administrator 29.0 37.3 71.2 70.3 37.0 37.3 32.0 26.3 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target 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 MARK-OUT ACCURACY TARGET 100% mark-out accuracy annually 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 25 Israel Bojorquez Utility Locator 100% (Year-End Result for FY 2015 -FY 2022) 100% 93% 90%90% 100% 96% 100%100% 75% 80% 85% 90% 95% 100% 105% 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target RECYCLED WATER SHUTDOWN TESTING TARGET 90% of recycled site shutdown tests performed annually (29 recycled water sites scheduled for shutdown in FY22, 90% = 26 sites) CALCULATION Cumulative percentage of recycled site shutdown tests performed per year ANNUAL RECYCLED WATER SITE INSPECTIONS TARGET 100% of recycled sites inspected annually (172 Recycled water use sites are due for inspection in FY22 ) CALCULATION Cumulative percentage of recycled site inspected per quarter of those required by DEH 26 100% (Year-End Result for FY 2015 -FY 2022) 99%100%100%100% 99% 96% 99% 100% 75% 80% 85% 90% 95% 100% 105% 110% 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target PERCENT OF PM’S COMPLETED FLEET MAINTENANCE TARGET 90% of scheduled preventative maintenance completed per quarter and annually CALCULATION Number of PM’s completed/Number of PM’s scheduled 129% 188% 111% 100% 50% 70% 90% 110% 130% 150% 170% 190% 2019 2020 2021 2022 Year-End Result Target EASEMENT EVALUATION AND FIELD INSPECTION TARGET 100% assigned easements, evaluated via desktop tools, and inspected annually (100 easements are assigned for FY22) CALCULATION Number of easements evaluated and inspected/Total easements assigned for the period 27 PERCENT OF PM’S COMPLETED -PUMP/ELECTRIC TARGET 90% of scheduled preventative maintenance completed per quarter and annually CALCULATION Number of PM’s completed/Number of PM’s scheduled 98% 100%99%98%98% 100%100%99% 75% 80% 85% 90% 95% 100% 105% 110% 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target PERCENT OF PM’S COMPLETED RECLAMATION PLANT TARGET 90% of scheduled preventative maintenance completed per quarter and annually CALCULATION Number of PM’s completed/Number of PM’s scheduled 28 Joc Anderson Electrician II 100% (Year-End Result for FY 2015 -FY 2022) 11.14 10.28 9.50 8.44 7.61 15.16 18.01 0 5 10 15 20 25 30 35 40 45 50 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target 75th Percentile Median 25th Percentile POTABLE WATER DISTRIBUTION SYSTEM INTEGRITY (AWWA –Water Operations) TARGET No more than 16 leaks and breaks per 100 miles of distribution piping annually CALCULATION 100 (Number of leaks and breaks)/Total miles of distribution piping AWWA BENCHMARK 16.2 –Median population served between 100,001-500,000 3425 4549 3228 3405 3298 2969 4723 3132 2050 2550 3050 3550 4050 4550 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target SYSTEM VALVE EXERCISING PROGRAM TARGET 3,080 valves exercised per year CALCULATION Total number of valves exercised per year 29 0 0 1.14 0 1.14 1.14 1.14 2.27 0 1 2 3 4 5 6 7 8 9 10 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target 75th Percentile Median 25th Percentile SEWER OVERFLOW RATE (AWWA –Wastewater Operations) TARGET 0 overflows annually CALCULATION 100 (Number of sewer overflows during the reporting period)/Total miles of pipe in the sewage collection system AWWA BENCHMARK 0 –75th Percentile for population served between 0-50,000 1.07 0.00 0.90 2.67 4.45 0.96 3.80 1.90 0 1 2 3 4 5 6 7 8 9 10 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target RECYCLED WATER SYSTEM INTEGRITY TARGET No more than 6.6 leaks and breaks per 100 miles of recycled distribution system annually CALCULATION 100 (Number of leaks and breaks)/Total miles of recycled distribution system 30 7 11 8 8 5 6 7 8 9 10 11 12 13 14 15 2019 2020 2021 2022 Year-End Result Target POTABLE TANK INSPECTION AND CLEANING TARGET 8 potable water storage tanks and/or reservoirs cleaned annually CALCULATION Number of tanks cleaned and inspected annually 100% 105%105%105% 72% 100%100% 65% 70% 75% 80% 85% 90% 95% 100% 105% 110% 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target EMERGENCY FACILITY POWER TESTING TARGET 100% of all emergency facilities tested annually (38 power ready facilities) CALCULATION 100 (Number of leaks and breaks)/Total miles of recycled distribution system 31 753 463 355 443 601 413 580 960 100 200 300 400 500 600 700 800 900 1000 1100 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target 520 631 631 631 631 631 631 712 400 450 500 550 600 650 700 750 800 850 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target CRITICAL VALVE EXERCISING TARGET 712 critical valves exercised annually CALCULATION Number of critical valves exercised in a year MAIN FLUSHING AND HYDRANT MAINTENANCE TARGET 215 mains flushed and fire hydrants maintained annually CALCULATION Number of mains flushed and fire hydrants maintained per year 32 3.15% 0% 0.75% 1.50% 3.63% 2.19%2.16% 7.97% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target EMPLOYEE VOLUNTARY TURNOVER RATE TARGET Less than 5% turnover annually CALCULATION Number of voluntary terminations (not including retirements)/Average number of employees 33Kyle Hernon Meter Maintenance Worker II 17.53 23.02 22.89 18.11 26.85 59.90 16.49 24.53 0 10 20 30 40 50 60 70 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target TRAINING HOURS PER EMPLOYEE 43.11 36.80 30.83 33.38 34.04 79.04 28.40 55.77 0 10 20 30 40 50 60 70 80 90 100 2015 2016 2017 2018 2019 2020 2021 2022 Year-End Result Target SAFETY TRAINING PROGRAM TARGET 12 hours per employee annually CALCULATION Total qualified training hours for all employees/Average number of FTEs TARGET 24 hours per field employee annually CALCULATION Total qualified safety training hours for field employees/Average number of field employees 34 https://otaywater.gov/about-otay/news-and-documents/strategic-plan/ QUESTIONS? FY23 –FY26 Strategic Plan