HomeMy WebLinkAbout01-17-17 EO&WR Committee PacketOTAY 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
January 17, 2017
12:00 P.M.
This is a District Committee meeting. This meeting is being posted as a special meeting
in order to comply with the Brown Act (Government Code Section §54954.2) in the event that
a quorum of the Board is present. Items will be deliberated, however, no formal board actions
will be taken at this meeting. The committee makes recommendations
to the full board for its consideration and formal action.
AGENDA
1. ROLL CALL
2. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO
SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JU-
RISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA
DISCUSSION ITEMS
3. AUTHORIZATION TO ACQUIRE PERMANENT UTILITY AND TEMPORARY CON-
STRUCTION EASEMENTS AT THE RANCHO SAN DIEGO TOWNE CENTER FROM
VESTAR FOR THE CAMPO ROAD SEWER REPLACEMENT PROJECT IN AN
AMOUNT NOT-TO-EXCEED $190,000 (BEPPLER) [5 min]
4. UPDATE ON THE PROGRESS OF THE CITY OF SAN DIEGO’S APPLICATION
WITH THE CALIFORNIA DEPARTMENT OF WATER RESOURCES FOR A SCIEN-
TIFIC-BASED MODIFICATION TO THE BOUNDARIES OF THE SAN DIEGO FOR-
MATION GROUNDWATER AQUIFER (KENNEDY) [5 min]
5. ADJOURNMENT
BOARD MEMBERS ATTENDING:
Tim Smith, Chair
Hector Gastelum
2
All items appearing on this agenda, whether or not expressly listed for action, may be delib-
erated and may be subject to action by the Board.
The Agenda, and any attachments containing written information, are available at the Dis-
trict’s website at www.otaywater.gov. Written changes to any items to be considered at the
open meeting, or to any attachments, will be posted on the District’s website. Copies of the
Agenda and all attachments are also available through the District Secretary by contacting
her at (619) 670-2280.
If you have any disability that would require accommodation in order to enable you to partici-
pate in this meeting, please call the District Secretary at 670-2280 at least 24 hours prior to
the meeting.
Certification of Posting
I certify that on January 13, 2017 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 January 13, 2017.
/s/ Susan Cruz, District Secretary
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: February 1, 2017
SUBMITTED BY:
Stephen Beppler
Senior Civil Engineer
Bob Kennedy
Engineering Manager
PROJECT: S2024-
001102
DIV. NO. 5
APPROVED BY:
Rod Posada, Chief, Engineering
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: Authorization to Acquire Easements at Rancho San Diego Towne
Center from Vestar for the Campo Road Sewer Replacement
Project
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District Board of Directors (Board) authorize the
General Manager to acquire permanent utility and temporary
construction easements at the Rancho San Diego Towne Center from
Vestar for the Campo Road Sewer Replacement Project in an amount not
to exceed $190,000 (see Exhibits A and B for location of the
easements).
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To obtain Board approval authorizing the General Manager to acquire
permanent utility and temporary construction easements at the Rancho
San Diego Towne Center across Assessor Parcel Numbers 506-130-02, 03
& 04, owned by Vestar and its subsidiary Vestar California XVII, LLC
(Vestar), for the Campo Road Sewer Replacement Project (Project) in
an amount not to exceed $190,000.
2
ANALYSIS:
The District is in the process of replacing a section of sanitary
sewer main, known as the Campo Road Sewer, identified in the
Wastewater Management Plan as being deficient in capacity. Design
and Permit phases of the Project are complete, with the Project
awaiting easement procurements prior to beginning the bidding phase.
Permanent utility and temporary construction easements are required
across Assessor Parcel Numbers 506-130-02, 03 & 04 (Rancho San Diego
Towne Center), owned by Vestar and its subsidiary Vestar California
XVII, LLC (Vestar), to construct the replacement sanitary sewer line
as designed. The alignment reflects the most cost effective and
lowest impacts on the community to connect the new sewer line to the
existing trunk sewer that already traverses the Vestar property. The
permanent utility easement is 25 feet in width and approximately 280
feet in length, while the temporary construction easement is 20 feet
in width and about 290 feet in length (see Attachment B for full
description).
The District, through the project designer Rick Engineering, retained
the appraisal services of Colliers International, an independent real
estate appraiser, to estimate the “Fair Market Value” of the proposed
Permanent Utility Easement acquisition, as that value is defined in
Section 1263.320 of the California Code of Civil Procedure. An offer
was presented to Vestar by letter dated June 1, 2016 (Attachment C)
for an amount of $72,300 for the easements.
A response from Vestar’s attorney was received by letter dated
October 20, 2016 (Attachment D), which significantly disagreed with
the property value based upon other comparable sales in the area and
cited severance damage impacts, valued the total just compensation at
$579,266.
Vestar’s representative, Allan Kasen, Esq., took the position that
the District’s appraiser “…material[ly] understated the value of the
property sought to be acquired.” (Attachment D) Mr. Kasen believes
that the property which comprises the easement should be valued at
$40 per square foot (psf) and not $19 psf which was the value used by
the District’s appraiser. Mr. Kasen stated that Vestar was willing
to accept $40 psf for the easement, which has an area of 7,052 sf, as
an effort to amicably resolve the matter. Further, Mr. Kasen
disagreed with deducting 50% for the property valuation for the
easement factor – he contended that a 20% deduction for valuation of
the easement was appropriate. Mr. Kasen also opposed the District
appraiser’s position that the underground easement causes no damage
to the property. Mr. Kasen’s position was that Vestar had the
3
ability to create new building outparcels on which it could build
stores/restaurants because cities have lessened parking requirements
for commercial properties, but that the proposed easement foreclosed
this ability. Vestar sought the following compensation for the
easement and the temporary construction easement:
Compensation for permanent easement: $231,720
Compensation for temporary construction easement: $ 11,006
Severance damage for permanent easement: $316,540
Severance damage for temporary easement: $ 20,000
________
Total: $579,266
The District’s General Counsel and Vestar’s attorney determined
through negotiation that the amount of $190,000 constitutes just
compensation for both the permanent easement and the temporary
construction easement.
A revised offer letter (Attachment E) dated December 19, 2016 was
then sent to Vestar for their written acceptance of the offer.
With Vestar’s acceptance of this offer, the Resolution of Necessity
that the Board adopted on November 2, 2016 will not need to be
implemented to obtain the easements.
The Project will move forward with beginning the bidding of the
Project in January 2017, as the two (2) easement acquisitions
necessary for the Project [this purchase and the Rancho San Diego
Village Shopping Center (Regency Centers) offer authorized by the
Board on December 7, 2016] will be resolved in principle, pending
execution. Both easements will be conveyed to the District before
awarding of a construction contract.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
The total budget for CIP S2024, as approved in the FY 2017 budget, is
$8,500,000. Total planning and design phase expenditures to date,
plus outstanding commitments and forecast, are $ 1,587.344.27. See
Attachment F Budget Detail. Forecasted bidding and construction phase
costs are approximately $6,700,000, for a total project expense
currently estimated at about $8,300,000.
Based on a review of the financial budget, the Project Manager
anticipates that the budget for CIP S2024 will be sufficient to
support the Project.
4
Finance has determined that, under the current rate model, 50% of the
funding will be available from the Betterment Fund and 50% will be
available from the Replacement Fund.
STRATEGIC GOAL:
This Project supports the District’s Mission statement, “To provide
high quality and reliable 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 innovative in providing water services at competitive rates,
with a reputation for outstanding customer service."
LEGAL IMPACT:
None.
SB/BK/RP:jf
P:\WORKING\CIP S2024 Campo Road Sewer Replacement\Staff Reports\Vestar Easement\BD 02-01-17, Staff
Report, Campo Rd Sewer Easement Aquisition - Vestar (SB-BK).docx
Attachments: Attachment A – Committee Action
Attachment B – Easement Description
Attachment C – Original Offer Letter to Vestar
Attachment D – Vestar Counteroffer
Attachment E – Revised Offer Letter to Vestar
Attachment F – Budget Detail
Exhibit A – Location Map
Exhibit B – Easements Map
ATTACHMENT A
SUBJECT/PROJECT:
S2024-001102
Authorization to Acquire Easements at Rancho San Diego
Towne Center from Vestar for the Campo Road Sewer
Replacement Project
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee
(Committee) reviewed this item at a Committee Meeting held on
January 17, 2017. 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.
OWD EASEMENT NO.
AS7 Law San Diego/4344/2/MI/S0320472.DOCX
RECORDING REQUESTED BY For Recorder's
Use AND AFTER RECORDATION MAIL TO:
OTAY WATER DISTRICT 2554 SWEETWATER SPRINGS BOULEVARD
SPRING VALLEY, CA 91978-2004
APN: 506-130-02, 506-130-04 Documentary Transfer Tax: None
(Exempt under Rev & Tax Code Section
11922)
GRANT OF EASEMENT OF RIGHT-OF-WAY TO
OTAY WATER DISTRICT
For good and valuable consideration, receipt of which is hereby acknowledged, the Undersigned Vestar
California XVII, LLC as Grantor(s) hereby GRANT(S) to OTAY WATER DISTRICT, a municipal
water district formed under the Municipal Water District Law of 1911, as amended, situated in the County of
San Diego, State of California, as Grantee, a permanent easement of right-of-way of 25 feet in width for the
purpose of laying underground water and sewer pipelines and laterals, trunk lines, collection lines and
laterals, sewer manholes and other underground structures appurtenant and ancillary to said water or sewer
lines, including, but not limited to, underground 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 in the reasonably least disruptive manner to Grantor’s adjacent
property. Said easement is described and/or depicted as follows:
(See Exhibit(s) “A” and “B” attached hereto and made a part hereof)
Grantor reserves the right to use said land at Grantor's own risk for any and all purposes not conflicting,
interfering or inconsistent with Grantee's use of, and access to, said facilities. Grantor waives any right
under Civil Code section 845, and any right to compel Grantee to grade, surface or otherwise improve or
maintain said easement area as a roadway.
Grantor shall not increase or decrease or permit to be increased or decrease the ground elevations of said
easement existing at the time this document is executed, nor construct or permit to be constructed any
permanent building, structures, improvements or other encroachment upon said easement, if any of the
OWD EASEMENT NO.
AS7 Law San Diego/4344/2/MI/S0320472.DOCX
foregoing will cause damage to or threaten the safety of any of said facilities of Grantee placed within the
easement.
Grantee may remove from the easement any building, structure, improvement or other encroachments
thereon conflicting, interfering or inconsistent with its use for the purposes hereby granted. Grantee shall
have the right to install its own gates and locks in all fences which now cross or may hereafter cross said
easement.
All repair, replacement, maintenance or renovation of the Grantee’s systems shall be at Grantee’s sole cost
and expense and shall be performed in compliance with all applicable laws.
Grantee shall keep the easement property free of liens attributable to Grantee’s work.
Grantee agrees on its own behalf and on behalf of its successors in interest that it will indemnify, defend
and hold harmless Grantor for any and all liability, claims and damages which result from Grantee’s
(including its agents and contractors) negligence or willful misconduct in connection with its construction,
maintenance and repair operations within the easement.
Grantor may use said land as a driveway and to the extent of such use may surface or pave the area, subject
to the restrictions as to changes in existing ground elevations and indemnifications set forth above.
Grantor may, at Grantor's expense, and subject to Grantee's prior written consent, relocate the above
mentioned facilities in the event such conflict with future development of said property, provided that
Grantor does not cause discontinuance of service to any area, and provided, further, that Grantee receives,
without expenses to Grantee, an easement comparable to this easement for said relocated facilities. Subject
to the preceding sentence, Grantee shall not be required to relocate or alter in any way the facilities
installed pursuant to this grant of easement, or to bear any cost in connection therewith as a result of
changes in the location of any said facilities.
Grantee shall have the right to transfer and assign all or a portion of this easement to any utility successor in
interest, or to any other political subdivision or public utility for use of the above stated purpose.
This easement shall in no way be interpreted as a dedication of the easement property to the public.
Date: _______________________
Grantor: Vestar California XVII, L.L.C., an Arizona limited liability company
By: Hanley Investments RSD Limited Liability Company, its Managing Member
By: _______________________________________, Manager
Print Name: ________________________________
OWD EASEMENT NO.
DISTRICT CERTIFICATE OF ACCEPTANCE
This is to certify that the interest in real property conveyed by the Grant of Easement of Right of Way to Otay Water
District dated _, from to OTAY WATER
DISTRICT, a municipal water district, is hereby accepted by order of the Board of Directors pursuant to the authority
conferred by Resolution No. 1829, adopted on February 23, 1981, and the grantee consents to recordation thereof by
its duly authorized officer.
Dated: By:
Susan Cruz, District Secretary
Otay Water District
OWD EASEMENT NO.
GRANTOR’S SIGNATURE ACKNOWLEDGEMENT
State of Arizona )
) ss.
County of Maricopa )
The foregoing instrument was acknowledged before me this _____ day of ___________________,
2016, by Edward J. Reading, as Manager of Hanley Investments RSD Limited Liability Company, an
Arizona limited liability company, the Managing Member of Vestar California XVII, L.L.C., an Arizona
limited liability company, on behalf of the Grantor.
Notary Public
My Commission Expires:
J-17224
EXHIBIT "A'
SEWER EASEMENT
Those portions of Lots 2 and 4 of Tract 5092-1 in the County of San Diego, State of
California, according to Map thereof No. 13483 filed in the Office of the County
Recorder of San Diego County October 10, 1997 said portions being more particularly
described as follows:
A strip of land 25.00 feet in width, lying easterly measured at right angles from the
following described line:
Beginning at the Northwest corner of said Lot 4, said corner being the beginning of a
non-tangent 710.00 foot radius curye concave northerly to which a radial line bears
South 10'29'38" East; thence along the northerly line of said Lot 4, easterly along the
arc of said curve through a central angle of 01'33'16" a distance of 19.26 feet to the
TRUE POINT OF BEGINNING; thence leaving said northerly line South 27'19'09" East
2B6.89 feet to a point on the northwesterly line of that easement granted to Otay Water
District recorded February 15, 1985 as lnstrument No. 85-053055, said point being the
POINT OF TERMINUS.
The sidelines of said strip of land 25.00 feet in width shall be lengthened or shortened to
intersect at the point of beginning with the northerly line of said Lot 4, and at the point of
terminus with the northwesterly line of said easement granted to Otay Water District.
Containing 0.162 acres, more or less
,F*ár2'4/î-Ze-Z,o/6
Patrick A. McMichael, L.S. 6242
JblK,'|Íilesl17224llegall17224_lgl_sewer ease for Lots 2 & 4
No.6187 **
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OWD EASEMENT NO.
RECORDING REQUESTED BY
AND AFTER RECORDATION
MAIL TO:
OTAY WATER DISTRICT
2554 SWEETWATER SPRINGS BOULEVARD
SPRING VALLEY, CA 91977-7299
APN: 506-130-02, 506-130-03, 506-130-04 Documentary Transfer Tax: None
(Exempt under Rev & Tax Code Section 11922)
TEMPORARY CONSTRUCTION EASEMENT
TO OTAY WATER DISTRICT
For good and valuable consideration, receipt of which is hereby acknowledged, the undersigned
Vestar California XVII, LLC, as Grantor(s) hereby GRANT(S) to OTAY WATER DISTRICT, a
municipal water district formed under the Municipal Water District Law of 1911, as amended, situated
in the County of San Diego, State of California, as Grantee, and to Grantee's contractors, a
temporary construction easement (“Easement”) and the right to access, use and occupy the surface
and subsurface of said easement for a period of six (6) months, commencing upon Grantor’s receipt
of written notice from Grantee of commencement of construction activity. The Easement is located
in the County of San Diego, State of California, more particularly described in Exhibit “A” and
depicted in Exhibit “B” attached hereto and made a part hereof. The Easement and right of access
shall extend to all acts necessary for the purpose of constructing a sewer pipeline, sewer manholes,
and other underground structures appurtenant to said sewer line associated with the Campo Road Sewer
Replacement Project (CIP S2024).
Grantor further grants to Grantee the right of unobstructed ingress and egress to the Easement in
the least disruptive manner, including the right to pass and re-pass over and along the Easement and
to deposit tools, implements and other materials on the Easement and to utilize construction,
automotive and other equipment thereon when necessary for the purpose of exercising its rights
hereunder.
Upon completion of any work, for the purposes and uses herein granted, Grantee shall restore, at
Grantee's expense, the surface of the Easement to a compacted, neat, clean condition, but not necessarily
the same condition as prior to such work, and shall replace any fencing or other improvements
removed by Grantee or Grantee's contractors.
OWD EASEMENT NO.
Grantee agrees on its own behalf and on behalf of its successors in interest that it will indemnify, defend
and hold harmless Grantor for any and all liability, claims and damages which result from Grantee’s
(including its agents and contractors) negligence or willful misconduct in connection with its
construction, maintenance and repair operations within the temporary construction easement.
The rights and obligations contained herein shall inure to the benefit of and be binding upon the
successors-in-interest, agents, employees, assigns, and transferees of the parties hereto.
IN WITNESS WHEREOF, Grantor has executed this Grant of Temporary Construction Easement as
of this day of , 20___.
Grantor: Vestar California XVII, L.L.C., an Arizona limited liability company
By: Hanley Investments RSD Limited Liability Company, its Managing Member
By: _______________________________________, Manager
Print Name: _________________________________
DISTRICT CERTIFICATE OF ACCEPTANCE
This is to certify that the interest in real property conveyed by the Grant of Temporary Construction Easement
to Otay Water District dated ________________________, _____________from _______________________
________________________________ to OTAY WATER DISTRICT, a municipal water district, is hereby
accepted by order of the Board of Directors pursuant to the authority conferred by Resolution No. 1829,
adopted on February 23, 1981, and the grantee consents to recordation thereof by its duly authorized officer.
Dated: _________________________ By: _____________________________
Susan Cruz, District Secretary
Otay Water District
OWD EASEMENT NO.
GRANTOR’S SIGNATURE ACKNOWLEDGEMENT
State of Arizona )
) ss
County of Maricopa )
The foregoing instrument was acknowledged before me this _____ day of
___________________, 20___, by Edward J. Reading, as Manager of Hanley Investments RSD
Limited Liability Company, an Arizona limited liability company, the Managing Member of
Vestar California XVII, L.L.C., an Arizona limited liability company, on behalf of the Grantor.
Notary Public
My Commission Expires:
J-17224
EXHIBIT'A"
TEMPORARY CONSTRUCTION EASEMENT
Those portions of Lots 2,3 and 4 of Tract 5092-1 in the County of San Diego, State of
California, according to Map thereof No. 13483 filed in the Office of the County
Recorder of San Diego County October 10, 1997 said portions being more particularly
described as follows:
A strip of land 20.00 feet in width, lying westerly measured at right angles from the
following described line:
Beginning at the Northwest corner of said Lot 4, said corner being the beginning of a
non-tangent 710.00 foot radius curve concave northerly to which a radial line bears
South 10o29'38" East; thence along the northerly line of said Lot 4, easterly along the
arc of said curve through a central angle of 01'33'16" a distance of 19.26 feet to the
TRUE POINT OF BEGINNING; thence leaving said northerly line South 27'19'09" East
286.89 feet to a point on the northwesterly line of that easement granted to Otay Water
District recorded February 15, 1985 as lnstrument No. 85-053055, said point being the
POINT OF TERMINUS.
The sidelines of said strip of land 20.00 feet in width shall be lengthened or shortened to
intersect at the point of beginning with the northerly line of said Lot 4, and at the point of
terminus with the northwesterly line of said easement granted to Otay Water District.
Containing 0.133 acres, more or less.
e-
Patrick A. McMichael, L.S. 6242
Jb|KJ'filesl17224Aegall17224_lgl_temp const ease for Lots 2lhru 4
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TEMPORARY CONSTRUCTION EASEMENT
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COUNTY OF SAN DIEGO, STATE OF CALIFORNIA
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2554SWEETWATERSPRINGSBOULEVARD,SPRING VALLEY,CALIFORNIA91978-2004
TELEPHONE:670-2222,AREACODE 619 WWW.Otaywater.gov
June 1,2016 Project No.:S2024-001102
Vestar California XVII, LLC
c/o Dana Duncan
2907 Shelter Island Dr.,#219
San Diego, CA 92106
SUBJECT:Temporary Construction and Permanent Utility Easement -
APN #506-130-02,03 &04;
Otay Water District -Campo Road Sewer Replacement Project;
Statutory Offer Pursuant to Government Code Section 7267.2(a)
Dear Property Owner:
The Otay Water District (District)is in the process of relocating District Sewer facilities
along Campo Road (SR 94) ("Campo Road Sewer Replacement Project"). In connection
with the Campo Road Sewer Replacement Project,the District hereby offers to acquire
Temporary Construction and Permanent Utility Easements across a portion of your real
property located at 2949,2987 &2991 Jamacha Rd.and identified by Assessor Parcel
Number 506-130-02,03 & 04 (the "Real Property").It is our understanding that you are
currently the only owner of record of the Real Property.If you are not the owner of the
Real Property, or if anyone else owns any portion of, or interest in,the Real Property,
please contact us immediately.
The District wishes to acquire the Temporary Construction and Permanent Utility
Easements amicably,expeditiously,and by negotiation,pending the approval by the
Board of Directors ("Board") of the District. To accomplish this,the District is required to
(i)establish an amount that the District believes to be "just compensation,"(ii)make an
offer to the owner(s)of record to acquire the Temporary Construction and Permanent
Utility Easements for the full amount so established,and (iii)provide the owner(s)with a
written statement of, and summary of the basis for, the amount established as "just
compensation."The District's offer cannot be less than the District's appraisal ofthe value
of the property interest to be acquired, (See California Government Code Section
7267.2(a)).
Vestar California XVII, LLC
Temporary Construction and Permanent Utility Easement -APN #506-130-02,03 & 04
June 1,2016
Page 2 of 3.
The District retained the appraisal services of Colliers International,an independent real
estate appraiser,to estimate the "Fair Market Value"of the proposed acquisition of
Temporary Construction and Permanent Utility Easements,as that value is defined in
Section 1263.320 of the California Code of Civil Procedure.The appraiser's Fair Market
Value Estimate is shown on the enclosed "Summary of the Basis for the Amount
Established as Just Compensation"and "Summary of Salient Facts and Conclusions."
Based upon this independent appraisal,the District has determined that the amount of
$67,039.00 constitutes Just Compensation for the proposed purchase of a Permanent
Utility Easement and $5,229.00 constitutes Just Compensation for the proposed use of
your property pursuant to the Temporary Construction Easement,both of which are described
and depicted in the enclosed legal description and plat.
Ifyou are agreeable with the above offer, an escrow will be opened by or at the direction
of the District.Escrow will facilitate the conveyance of the Permanent Utility Easement
to the District free and clear of any and all liens,encumbrances,and options or claims for
leasehold interests for a total consideration of $72,300.00.The acquisition of the
Temporary Construction and Permanent Utility Easements and access rights is subject
to District reviewing the escrow Preliminary Title Report, if any, and accepting the
conveyance document.The District will pay all eligible incidental expenses associated
with the escrow closing,including any recording fees.
Please note that the proceeds related to the purchase of the Temporary Construction and
Permanent Utility Easements may be subject to payment demands for county taxes,
assessment liens,federal and state tax liens,creditor judgements,and beneficiaries of
trust deeds.Please note further,that ifa condemnation action is approved and filed,the
District may continue to discuss a negotiated purchase based upon the offer set forth
herein.
This offer will be deemed revoked,if it has not been accepted before the earlier of (i)the
date on which the Board of Directors of the District holds a public hearing on a possible
condemnation action,if any,or (ii)within 45 days of the date of this letter.
Ifthe above offer meets with your approval,please sign this letter on Page 3 under the
heading "Offer Accepted" and return itto myattention. Aduplicate copy ofthis letter is
enclosed for your records.Please review allthe enclosed documents priorto making a
decision.If you accept our offer,please be ready to execute and deliver the Temporary
Construction and Permanent Utility Easements enclosed with this offer.
Vestar California XVII,LLC
Temporary Construction and Permanent Utility Easement - APN #506-130-02,03 &04
June 1,2016
Page 3 of 3.
If you have any questions regarding the project or the terms of the Temporary
Construction and Permanent Utility Easements acquisition proposal,please contact the
District's Project Manager,Stephen Beppler, P.E.,Senior Civil Engineer,at (619) 670-
2209 or by e-mail at steve.beppler@otaywater.gov.
Sincerely,
OTAY WATER DISTRICT
Mark Watton
General Manager
MW:jf
Enclosures:
Summary of the Basis for the Amount Established as Just Compensation -
Permanent Easement
Summary ofthe Basis forthe Amount Established as Just Compensation -
Temporary Construction Easement
Appraisal Summary Statement
Proposed Permanent Utility Easement with Exhibit A&B- Legaland Plat
Proposed Temporary Construction Easement with Exhibit A&B- Legaland Plat
The Public Acquisition Process
Copy of this Offer Letter
OFFER ACCEPTED:VESTAR CALIFORNIA XVII,LLC
Dated:
By:
Signature Print
P:\WORKING\CIP S2024 Campo Road Sewer Replacement\Easements\Proposed Easements\Offers\Vestar RSDTC - Constructionand Permanent
EasementOffer 20160518.docx
Summary of the Basis for the
Amount Established as Just Compensation
(Pursuant to Section 1255.010 of the California Code of Civil Procedure)
(Accompanying the offer made pursuant to Government Code Section 7267.2)
The following is a summary of the basis for the amount established as just compensation for the
Permanent Utility Easement the District desires to acquire on a portion of the Real Property
described in the Offer to which this Summary is attached. The appraisal was made in accordance
with accepted appraisal principles, consistent with California valuation law. An identification of
the parcel, the project for which the permanent utility easement is required, the required property
rights and the valuation analysis which was the basis for the valuation conclusion is as follows:
PROJECT: Otay Water District Campo Road Sewer Replacement
Project
ASSESSOR PARCEL NUMBER: 506-130-02 & 04
SUBJECT PROPERTY LOCATION: 2949 & 2987 Jamacha Rd., El Cajon, CA 92019
OWNER OF RECORD: Vestar California XVII, LLC
2907 Shelter Island Dr. #219, San Diego, CA 92106
Telephone: 619-223-9400 (Dana Duncan)
INTEREST BEING VALUED: Permanent Utility Easement
AREA AFFECTED: Approximately 7,057 square feet, or 0.162 acres
DATE OF VALUE: February 12, 2016
SUMMARY OF VALUE CONCLUSIONS AND DESCRIPTION OF THE LARGER PARCEL:
Refer to enclosed copy of Appraisal Summary Statement
PROPOSED PROJECT:
The purpose of the Otay Water District Campo Road Sewer Replacement Project is for the District
to replace its facilities that are no longer meeting the District’s needs. The District anticipates
using the Permanent Utility Easement as a means to access the trench for the pipe to be
realigned. After the realignment of the pipe is accomplished, the District will return the easement
to its condition prior to the access.
Summary of the Basis for the Amount APN 506-130-02 & 04
Established as Just Compensation –
Permanent Utility Easement
Page 2 of 3.
DESCRIPTION OF THE PERMANENT UTILITY EASEMENT USE:
The permanent easement has an area of approximately 7,057 square feet. The District will
construct a 15” sewer within the easement. Upon completion the District will return the easement
to its condition prior to the access and will access the sewer through manholes.
REMAINDER OF PARCEL:
The permanent utility easement is not anticipated to have significant impact on the Real Property.
VALUATION OF THE LARGER PARCEL
Definition of Fair Market Value
Fair Market Value is defined under California law as the highest price on the date of valuation that
would be agreed by a seller willing to sell but under no particular or urgent necessity to sell and a
buyer being ready, willing and able to buy but under no particular necessity for so doing, each
dealing with the other with full knowledge of all the uses and purposes for which the property is
reasonably adaptable and available.
Definition of Highest and Best Use
Highest and best use is defined as the reasonably probable use of land that is legally permissible,
physically possible, financially feasible, and maximally productive resulting in the highest value.
The highest and best use analysis is used in the appraisal process to identify comparable
properties and, where applicable, to determine whether the existing improvements should be
retained, renovated, or demolished. The results of the highest and best use analysis are
discussed below.
HIGHEST AND BEST USE
The highest and best use for the Real Property was determined to be industrial building, as zoned.
METHODOLOGY
The sales comparison approach was used to estimate the fair market value of the Real Property
and the temporary construction easement.
Summary of the Basis for the Amount APN 506-130-02 & 04
Established as Just Compensation –
Permanent Utility Easement
Page 3 of 3.
SALES COMPARISON APPROACH
The following is a summary of the principal sales considered applicable to the valuation of the
larger parcel:
SUMMARY OF IMPROVED TRANSACTIONS
No. Location Sale Date Size in AC Price Price/SF
1 5900 Severin Dr., La Mesa Pending
2/4/2016
0.46 $400,000 $19.96
2 1338 E. Main St., El Cajon 8/28/2014 1.31 $1,020,000 $17.87
3 714 Grand Ave., Spring Valley 4/3/2015 0.27 $230,000 $19.56
4 230 El Cajon, El Cajon 7/21/2015 0.80 $500,000 $14.35
5 1164 Coushatta, Spring Valley 10/12/2015 1.42 $885,000 $14.31
Broker opinion of value varies from $15 to $20 per square foot depending on size and location of
the parcels. The property at Jamacha Rd., consisting of 4.10 acres, has an estimated value of
$19 per square foot.
VALUATION OF PERMANENT UTILITY EASEMENT
The compensation for the permanent easement which encumbers 7,057 square feet was based
on the fee simple interest of the property, and is a percentage of the fee simple value based on
the fact that it is shared property with some rights retained by the current property owner. The
fee simple value of the land was established at $19 per square foot. With 50% of the rights taken
by the permanent easement. Therefore, the value of the part taken is $67,039 ($19.00 per square
foot x 50% shared rights x 7,057 square feet).
VALUE OF THE REMAINDER
Following the proposed realignment/relocation of the District’s facilities, the Real Property will
have an area that is unchanged from its present condition. No significant adverse impact is
anticipated from the Project. The acquisition of the easement does not change the zoning or
other land use regulations applicable to the Real Property. Based on the investigation, there are
no damages occasioned by the Project to the reminder of the Real Property.
BENEFIT
The proposed sewer line continues to be underground and will be available through manholes for
use on the Real Property. There is no market evidence suggesting that there is a benefit to the
Real Property. Therefore, there are no demonstrable benefits to the Real Property directly
resulting from the Project.
Summary of the Basis for the
Amount Established as Just Compensation
(Pursuant to Section 1255.010 of the California Code of Civil Procedure)
(Accompanying the offer made pursuant to Government Code Section 7267.2)
The following is a summary of the basis for the amount established as just compensation for the
Temporary Construction Easement the District desires to acquire on a portion of the Real
Property described in the Offer to which this Summary is attached. The appraisal was made in
accordance with accepted appraisal principles, consistent with California valuation law. An
identification of the parcel, the project for which the temporary construction easement is required,
the required property rights and the valuation analysis which was the basis for the valuation
conclusion is as follows:
PROJECT: Otay Water District Campo Road Sewer Replacement
Project
ASSESSOR PARCEL NUMBER: 506-130-02, 03 & 04
SUBJECT PROPERTY LOCATION: 2949, 2987 & 2991 Jamacha Rd., El Cajon, CA 92109
OWNER OF RECORD: Vestar California XVII, LLC
2907 Shelter Island Dr. #219, San Diego, CA 92106
Telephone: 619-223-9400 (Dana Duncan)
INTEREST BEING VALUED: Temporary Construction Easement
AREA AFFECTED: Approximately 5,793 square feet, or 0.133 acres
DATE OF VALUE: February 12, 2016
SUMMARY OF VALUE CONCLUSIONS AND DESCRIPTION OF THE LARGER PARCEL:
Refer to enclosed copy of Appraisal Summary Statement
PROPOSED PROJECT:
The purpose of the Otay Water District Campo Road Sewer Replacement Project is for the District
to replace its facilities that are no longer meeting the District’s needs. The District anticipates
using the Temporary Construction Easement as a means to access the trench for the pipe to be
realigned. After the realignment of the pipe is accomplished, the District will return the temporary
construction easement to its condition prior to the access.
Summary of the Basis for the Amount APN 506-130-02, 03 & 04
Established as Just Compensation –Temporary Construction Easement
Page 2 of 3.
DESCRIPTION OF THE TEMPORARY CONSTRUCTION EASEMENT USE:
The temporary construction easement has an area of approximately 5,793 square feet and is
required for a period of six months. However, actual work on that portion of the pipeline is
anticipated to be a few weeks. The area that the District needs to access is within the Real
Property through the existing parking lot.
REMAINDER OF PARCEL:
The temporary construction easement is not anticipated to have significant impact on the Real
Property.
VALUATION OF THE LARGER PARCEL
Definition of Fair Market Value
Fair Market Value is defined under California law as the highest price on the date of valuation that
would be agreed by a seller willing to sell but under no particular or urgent necessity to sell and a
buyer being ready, willing and able to buy but under no particular necessity for so doing, each
dealing with the other with full knowledge of all the uses and purposes for which the property is
reasonably adaptable and available.
Definition of Highest and Best Use
Highest and best use is defined as the reasonably probable use of land that is legally permissible,
physically possible, financially feasible, and maximally productive resulting in the highest value.
The highest and best use analysis is used in the appraisal process to identify comparable
properties and, where applicable, to determine whether the existing improvements should be
retained, renovated or demolished. The results of the highest and best use analysis are discussed
below.
HIGHEST AND BEST USE
The highest and best use for the Real Property was determined to be industrial building, as zoned.
METHODOLOGY
The sales comparison approach was used to estimate the fair market value of the Real Property
and the temporary construction easement.
Summary of the Basis for the Amount APN 506-130-02, 03 & 04
Established as Just Compensation –Temporary Construction Easement
Page 3 of 3.
SALES COMPARISON APPROACH
The following is a summary of the principal sales considered applicable to the valuation of the
larger parcel:
SUMMARY OF IMPROVED TRANSACTIONS
No. Location Sale Date Size in AC Price Price/SF
1 5900 Severin Dr., La Mesa Pending
2/4/2016
0.46 $400,000 $19.96
2 1338 E. Main St., El Cajon 8/28/2014 1.31 $1,020,000 $17.87
3 714 Grand Ave., Spring Valley 4/3/2015 0.27 $230,000 $19.56
4 230 El Cajon, El Cajon 7/21/2015 0.80 $500,000 $14.35
5 1164 Coushatta, Spring Valley 10/12/2015 1.42 $885,000 $14.31
Broker opinion of value varies from $15 to $20 per square foot depending on size and location of
the parcels. The property at Rancho San Diego Towne Center, consisting of 4.10 acres, has an
estimated value of $19 per square foot.
VALUATION OF TEMPORARY CONSTRUCTION EASEMENT
The compensation for a temporary construction easement typically amounts to compensation to
the owner for loss in utility of the area during the period of time the portion of the property is used
for another purpose. A rental rate of return of 9.5 percent per year was applied to reflect the value
of the temporary rights. The temporary construction easement will be needed for a period of six
months (.5 of a year). Therefore, the value of the part taken is $5,229. The resulting calculation
is as follows:
$19.00 x 5,793= $110,067
$110,067 x 9.5% per year = $10,456 per year
$10,456 x .5 year = $5,229
VALUE OF THE REMAINDER
Following the proposed relocation of the District’s facilities, the Real Property will have an area
that is unchanged from its present condition. No significant adverse impact is anticipated from
the Project. The acquisition of the easement does not change the zoning or other land use
regulations applicable to the Real Property nor does it have a significant impact on the use of the
Real Property during the time the temporary construction easement is anticipated to remain in
effect. Based on the investigation, there are no damages occasioned by the Project to the
remainder of the Real Property.
BENEFIT
The proposed sewer line continues to be underground and will not be available for use on the
Real Property. There is no market evidence suggesting that there is a benefit to the Real
Property. Therefore, there are no demonstrable benefits to the Real Property directly resulting
from the Project.
OTAY Ðsd¿caisd to Comr,rnunttg Se,rt;¿ce
2554 SWEETWATER SPRINGS BOULEVARD, SPRING VALLEY CALIFORNIA 91 978-2004
TELEPHONE: 670-2222, AREACODE619 www.otawater.gov
December 19, 2016 Project No.: 52024-001 102
Vestar
c/o Allan J. Kasen
2425 East Camelback Road, Suite 750
Phoenix, AZ 85016
SUBJECT Temporary Construction and Permanent Utility Easement -
APN # 506-130-02,03 & 04;
Otay Water District - Campo Road Sewer Replacement Project;
Statutory Offer Pursuant to Government Code Secfion 7267.2(a)
Dear Mr. Kasen
The Otay Water District (District) hereby presents a revised statutory offer to acquire
Temporary Construction and Permanent Utility Easements across a portion of the real
property located a|2949,2987, & 2991 Jamacha Road and identified by Assessor Parcel
Number 506-130-02,03 & 04 (the "Real Property"), owned byVestar and its subsidiary
Vestar California XVll, LLC, upon which the District initially offered in a letter dated
June 1 , 2016. The easement is related to the District's relocation of sanitary sewer
facilities along Campo Road (SR 94) ("Campo Road Sewer Replacement Project").
Based upon negotiations between the District's legal counsel and Vestar and considering
the appraised value and your disagreements with it, an amount of $190,000.00 has been
deemed as Just Compensation for the proposed purchase of the Permanent Utility
Easement and Temporary Construction Easement, both of which are described and
depicted in the enclosed legaldescriptions and plats. The descriptions have been revised
from the original version provided in the June 1 , 2016 offer to reflect agreed upon
changes.
Upon acceptance of this offer, an escrow will be opened by or at the direction of the
District. Escrow will facilitate the conveyance of the Permanent Utility Easement and
Temporary Construction Easement to the District free and clear of any and all liens,
encumbrances, and options or claims for leasehold interests for a total consideration of
$190,000.00. The acquisition of the Temporary Construction and Permanent Utility
Easements and access rights is subject to District reviewing the escrow Preliminary Title
Report, if any, and accepting the conveyance document. The District will pay all eligible
incidental expenses associated with the escrow closing including any recording fees.
Vestar
Temporary Construction and Permanent Utility Easement - APN # 506-1 30-02,03 & 04
December 19,2016
Page 2 of 2.
Please note that the proceeds related to the purchase of the Temporary Construction and
Permanent Utility Easements may be subject to payment demands for county taxes,
assessment liens, federal and state tax liens, creditor judgements, and beneficiaries of
trust deeds.
This offer will be deemed revoked if it has not been accepted within 30 days of the date
of this letter.
Please have the appropriately authorized signatory sign this letter below under the
heading "Offer Accepted" with notary acknowledgment and return it to my attention along
with a completed Federal IRS Form W-9 (enclosed). A copy of this letter is enclosed for
your records. Please also be prepared to execute and deliver the Temporary
Construction and Permanent Utility Easements enclosed with this offer.
Sincerely,
OTAY WA R DISTRICT
rk Watton
General Manager
MW:jf
Enclosures:
Proposed Permanent Utility Easement with Exhibit A & B - Legal and Plat
Proposed Temporary Construction Easement with Exhibit A & B - Legal and Plat
Federal IRS Form W-9
Copy of this Offer Letter
OFFER ACCEPTED: VESTAR CAL¡FORNIA XVII, LLC
Dated
By:
Title
Signature Print
ATTACHMENT F – Budget Detail
Project Budget Detail
S2024‐Campo Road Sewer Main Replacement
Level Title1 Committed Expenditures Outstanding
Commitment
Projected
Final Cost
Vendor
Planning Consultant
Contracts
$20,020.00 $20,020.00 $0.00 $20,020.00 AEGIS ENGINEERING
MGMT INC
Regulatory Agency
Fees
$132.00 $132.00 $0.00 $132.00 US BANK
$2,260.00 $2,260.00 $0.00 $2,260.00 COUNTY OF SAN
DIEGO
Service Contracts $161.70 $161.70 $0.00 $161.70 SAN DIEGO DAILY
TRANSCRIPT
$42.50 $42.50 $0.00 $42.50 EAST COUNTY
GAZETTE
Standard Salaries $138,106.13 $138,106.13 $0.00 $138,106.13
Total $160,722.33 $160,722.33 $0.00 $160,722.33
Design Consultant
Contracts
$9,315.00 $9,315.00 $0.00 $9,315.00 WATER SYSTEMS
CONSULTING INC
$765,074.35 $689,661.45 $75,412.90 $765,074.35 RICK ENGINEERING
COMPANY
$4,025.00 $4,025.00 $0.00 $4,025.00 MICHAEL D KEAGY
REAL ESTATE
$3,507.75 $3,507.75 $0.00 $3,507.75 NINYO & MOORE
GEOTECHNICAL
Professional Legal
Fees
$182.32 $182.32 $0.00 $182.32 STUTZ ARTIANO
SHINOFF
$1,910.00 $1,910.00 $0.00 $1,910.00 ARTIANO SHINOFF
Regulatory Agency
Fees
$956.00 $956.00 $0.00 $956.00 COUNTY OF SAN
DIEGO
Service Contracts $158.20 $158.20 $0.00 $158.20 SAN DIEGO DAILY
TRANSCRIPT
Easement
Acquisition
$125,000.00 $0.00 $125,000.00 $125,000.00 REGENCY CENTERS
$190,000.00 $0.00 $190,000.00 $190,000.00 VESTAR
Standard Salaries $253,089.60 $253,089.60 $0.00 $253,089.60
Total $1,353,218.22 $962,805.32 $390,412.90 $1,353,218.22
Construction Consultant
Contracts
$42,460.65 $0.00 $42,460.65 $42,460.65 RICK ENGINEERING
COMPANY
$12,258.00 $12,258.00 $0.00 $12,258.00 NINYO & MOORE
GEOTECHNICAL
$17,400.00 $17,400.00 $0.00 $17,400.00 ALYSON CONSULTING
Standard Salaries $1,285.07 $1,285.07 $0.00 $1,285.07
Total $73,403.72 $30,943.07 $42,460.65 $73,403.72
Budget $8,500,000.00
Total $1,587,344.27 $1,154,470.72 $432,873.55 $1,587,344.27
SUBJECT/PROJECT:
S2024-001102
Authorization to Acquire Easements at Rancho San Diego
Towne Center from Vestar for the Campo Road Sewer
Replacement
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EXHIBIT B
PROPOSED
EASEMENT
PERMANENT EASEMENT
TEMPORARY CONSTRUCTION EASEMENT
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: February 1, 2017
SUBMITTED BY:
Bob Kennedy
Engineering Manager
PROJECT: P2467-
001101
DIV. NO. 4
APPROVED BY:
Rod Posada, Chief, Engineering
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: Informational Update of the San Diego Formation Basin Boundary
Modification and Sustainable Groundwater Management Act
Requirements
GENERAL MANAGER’S RECOMMENDATION:
No recommendation. This is an informational item only.
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To update the Otay Water District (District) Board of Directors
(Board) on the progress of the City of San Diego’s application
with the California Department of Water Resources (DWR) for a
scientific-based modification to the boundaries of the San Diego
Formation Groundwater (SDF) aquifer (see Exhibit A for Project
location).
ANALYSIS:
In September of 2014, Governor Brown signed into law the
Sustainable Groundwater Management Act (SGMA) (Water Code
Sections 10720-10736.5) in response to persistent and drought-
driven severe overdraft and related ground subsidence issues in
portions of the state, primarily the Central Valley of
2
California. SGMA set forth a process and timeline for the
formation of Groundwater Sustainability Agencies (GSAs) to
establish and implement Groundwater Sustainability Plans (GSPs)
and restore groundwater sustainability in basins classified by
the DWR as being of “medium” to “high” priority.
On March 25, 2016, the City of San Diego filed an application
with DWR for a scientific-based modification to the boundaries
of the SDF aquifer. It is described as a scientific-based
modification to the boundaries of the Sweetwater Valley (Basin
9-17), Otay Valley (Basin 9-18), and Tijuana Valley (Basin 9 19)
groundwater basins, as defined in DWR Bulletin 118. These
basins are located in the southern San Diego County portion of
the South Coast Hydrologic Region. The proposed modification
will consolidate the three basins into one, and expand the
boundaries to include the whole of the underlying SDF aquifer.
The modification of the basin boundary is not a project under
CEQA Guideline Section 15378 (b).
The proposed SDF basin is bounded on the east side by the La
Nacion fault zone that extends from Mission Valley south to the
Mexico border. The western SDF basin boundary would be defined
by the shoreline. The northern proposed SDF basin overlaps with
a fourth DWR designated basin, the Mission Valley basin DWR
Basin 9-14. The Mission Valley basin is independent and not
included in the proposed modification of the SDF aquifer. The
southerly basin boundary would be at the U.S./Mexico
International Border. The District’s Rancho del Rey well is
located within the SDF aquifer (see Exhibit B).
In 2001, local water agencies and the United States Geological
Survey (USGS) began a comprehensive geologic, hydrologic, and
geochemical investigation of the groundwater resource in the
coastal San Diego area known as the San Diego Hydrogeology
Project. Funding for this project was provided by the District,
Sweetwater Authority, the City of San Diego, the State of
California via water bonds, and the United States Federal
Government via appropriations for the USGS. The two (2) primary
objectives of the USGS study are (1) to develop an integrated,
comprehensive understanding of the geology and hydrology of the
San Diego area, focusing on the SDF and the overlying alluvial
deposits, and (2) to use this understanding to evaluate expanded
use of the alluvial deposits and the SDF for recharge and
extraction. The USGS has installed a system of multi-point
monitoring wells in coastal San Diego and has compiled
subsurface data and physical properties of the SDF. Groundwater
data dating back more than ten years and other resources from
3
the USGS pertaining to the SDF can be accessed at the attached
URL.
URL: http://ca.water.usgs.gov/projects/sandiego/index.html
The City of San Diego and Sweetwater Authority reviewed the
proposed boundary modification with District staff at
information workshops held on March 3, 2016 and on December 1,
2016. DWR is expected to accept the basin boundary modification
and move the basin to a Medium priority and then requirements
will be triggered for SGMA compliance. The SGMA act requires
the formation of local groundwater sustainability agencies
(GSAs) that must assess conditions in their local water basins
and adopt locally-based groundwater sustainability management
plans (GSP). The SGMA act provides substantial time – 20 years
– for GSAs to implement plans and achieve long-term groundwater
sustainability. According to the state, SGMA does not affect
water rights. The purpose of SGMA is to address water
management issues together as stakeholders in the basin. One
option is for multiple agencies to form a single GSA and prepare
a single GSP. A second option would be for multiple agencies to
form multiple GSAs and work together to prepare a single GSP
with an optional inter-basin agreement. A third option is for
multiple agencies to form multiple GSAs and prepare multiple
GSPs. The state will require the plans to be coordinated
through a coordination agreement. Allocation is a future issue
that is addressed during GSA and GSP discussions. Scientific
data is the basis for allocations.
It is expected the District will have up to two (2) years to
decide how to form a GSA and another two (2) years to prepare a
GSP or participate in the preparation with Sweetwater Authority
and the City of San Diego. The budget for the City’s GSP is $1
million dollars, which will have to be prorated with the
participating agencies sharing the costs, if a joint GSP is
prepared. District staff will meet with Sweetwater Authority
and City of San Diego staff over the next six months to better
understand the benefits of the District having an active role in
groundwater resource management and the cost of the GSA
formation, GSP plan preparation, ongoing monitoring
responsibilities and the long-term commitment for the reporting
and GSP updates required by the state.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
No fiscal impact as this is an informational item for the Board.
4
STRATEGIC GOAL:
This Project supports the District’s Mission statement, “To
provide high value water and wastewater services to the
customers of the Otay Water District in a professional,
effective, and efficient manner” and the General Manager’s
Vision, “A District that is at the forefront in innovations to
provide water services at affordable rates, with a reputation
for outstanding customer service.”
LEGAL IMPACT:
No legal impact is anticipated.
BK/RP:jf
P:\WORKING\CIP P2467 SD Formation Groundwater Feasibility Study\Staff Reports\BD 02-01-17, Staff Report, GSA-
GSP Info Item.docx
Attachments:
Attachment A – Committee Action
Exhibit A – Project Location
Exhibit B – Rancho del Rey Well Location
Exhibit C - Presentation
ATTACHMENT A
SUBJECT/PROJECT:
P2467-001101
Informational Update of the San Diego Formation Basin
Boundary Modification and Sustainable Groundwater
Management Act Requirements
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee
reviewed this item at a meeting held on January 17, 2017 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.
CHULAVISTA
CORONADO
IMPERIALBEACH
LA MESA
LEMONGROVE
NATIONALCITY
SANDIEGO
SANDIEGO
CORONADO
CHULAVISTA
S.D.COUNTY
S.D.COUNTY
S.D.COUNTY
Path:U:\Projects\_Jobs\60438044City
of
SD
-Groundwater
MgmtPlan-
SD
Fm\012
GIS
MAPS
&
CAD\!GSP
Figures\map_docs\Agencies_Municipalities_ALL.mxd,janssenn,10/18/2016,
4:44:34PM
Legend
Coastal Plain of San Diego Boundary
Municipal Boundaries
City of San Diego
Otay Water District
South Bay Irrigation District
City of National City
Navy Public Works
California-American Water Co
SOURCES: ESRI, CA DWR.
CITY AND WATER AGENCYJURISDICTION BOUNDARIESSAN DIEGO, CA
FIG. NO:1SCALE: 1" = 2.5 miles (1:158,400)
1.25 0 1.25 2.5 Miles
O
SCALE CORRECT WHEN PRINTED AT 8.5X11Portions of this DERIVED PRODUCT contains geographic information copyrighted by SanGIS. All Rights Reserved.
OTAY WATER DISTRICTRANCHO DEL REY WELL &EAST BOUNDARY OF THE PROPOSEDGROUNDWATER MANAGEMENT BASIN F
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Legend
Proposed Groundwater
Management Basin Boundary
OWD Rancho Del Rey Well Site^_
September 2016
1) Provide for sustainable
management of California’s
groundwater resources
2) Promote local control and
cooperation
SGMA Purpose
EXHIBIT C
Background – The Coastal Plain of
San Diego Groundwater Basin
2
Basin Boundary Modification
3
4
1) The Water Agencies are
willing to lead as GSAs,
retaining water management
responsibility for GW within
their service areas.
2) Cities have the option to be
GSAs, but are not required to
do so
3) Cal Am is not eligible to form
a GSA, but could participate
by MOU or similar.
4) GSA Coverage for the Cal
Am Service area could be
provided by the overlying
cities, CSD, or the County.
Executive Summary
2) GSA Formation Options
IMPLICATIONS
PROPOSED BASIN BOUNDARY
MODIFICATION
5
Rancho del Rey
Well Site
5
IMPLICATIONS
PROPOSED BASIN BOUNDARY
MODIFICATION
6
GSP Options
6
7
COST
• Staff and/or consultants participation in management activities & meetings
• Contribute to preparation of GSP
• Ongoing monitoring responsibility
• Regular GSP updates
• Long term commitment
• $$$
BENEFIT
• Have an active role in
groundwater resource
management
Any “Local Agency” as defined is eligible to form GSA:
10721 (n):“Local agency” means a local public agency that has water supply,
water management, or land use responsibilities within a groundwater basin.
Executive Summary
3) GSA Benefits and Costs
GSA Authorities
8
• GSAs are empowered
by SGMA to manage
groundwater basins
and regulate use
Significant Authorities Granted to
GSAs by SGMA
1. Adopt Rules and Regulations
2. Impose Fees
3. Monitor Groundwater Extractions
4. Acquire Property and Water Rights /
Construct Projects
5. Arrange Transfers and Exchanges
6. Regulate Well Spacing
7. Regulate Groundwater Extractions
8. Coordinate with County on Issuance of
Well Permits
9. Enforcement
GSA Formation Process
9
Also:
•Principles of Understanding among intended GSA formation agencies
• Future formal MOU(s)or Coordination Agreement as needed
1) Public
Notice of
Intent to
form GSA
2) Document
Public
Outreach
3) Adopt
Resolution
4) Submittal
to DWR
5) DWR
Designates
Exclusive
GSA
GSP Elements
• Basin Characterization / Water Balance
• Sustainability Objectives / Avoidance of Undesirable
Results
Chronic Overdraft
Seawater Intrusion (TDS, Chlorides)
Land Subsidence
Surface Water Depletion
• Thresholds and Monitoring
• Projects and Actions to Reach Goals
• Annual Reporting
10
IMPLICATIONS
PROPOSED BASIN BOUNDARY
MODIFICATION
11
Questions?
11