HomeMy WebLinkAbout04-19-16 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
April 19, 2016
1:00 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. APPROVE AN AGREEMENT WITH KIRK PAVING IN AN AMOUNT NOT-TO-
EXCEED $200,000 FOR AS-NEEDED ASPHALT PAVING SERVICES FROM JULY 1,
2016 THROUGH JUNE 30, 2017 (MARTINEZ) [5 min]
4. APPROVE A REIMBURSEMENT AGREEMENT WITH BALDWIN & SONS, LLC, A
CALIFORNIA LIMITED LIABILITY COMPANY, FOR A PORTION OF THE CAPITAL
IMPROVEMENT PROGRAM PROJECT RECPL – 20-INCH, 680 ZONE, VILLAGE 2 –
HERITAGE/LA MEDIA, IN THE AMOUNT OF $265,994.40 (MARTIN) [5 minutes]
5. SAN DIEGO COUNTY WATER AUTHORITY UPDATE (WATTON) [10 minutes]
6. ADJOURNMENT
BOARD MEMBERS ATTENDING:
Tim Smith, Chair
Gary Croucher
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 April 15, 2016 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 April 15, 2016.
/s/ Susan Cruz, District Secretary
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: May 4, 2016
SUBMITTED BY:
Jose Martinez, Assistant
Chief of Water Operations
PROJECT: DIV. NO. All
APPROVED BY:
Pedro Porras, Chief of Water Operations
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: AUTHORIZE AGREEMENT WITH KIRK PAVING FOR ANNUAL AS-NEEDED
PAVING SERVICES
GENERAL MANAGER’S RECOMMENDATION:
That the Board authorize entering into an agreement with Kirk
Paving in an amount not to exceed $200,000 for as-needed asphalt
paving services from July 1, 2016 through June 30, 2017.
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To present bid results and request that the Board authorize
entering into an agreement with Kirk Paving, Lakeside, CA for as-
needed asphalt paving services from July 1, 2016 through June 30,
2017 in an amount not to exceed $200,000.
ANALYSIS:
As a regular course of business, the District is required to
maintain and repair its water delivery infrastructure. Routinely
this work requires the removal and re-installation of asphalt
paving in public roadways. It has been shown more effective and
efficient for the District to use outside contractors for its
asphalt paving work. Therefore, the District has used outside
asphalt paving contract services for more than eleven (11) years.
As-needed paving services have been included in the FY 2017
Operating Budget under Contracted Services. The FY 2017 budget for
annual as-needed paving under Contracted Services is $200,000.
In accordance with the District’s purchasing requirements, a
notice was published and bids were solicited for this work on a
“unit price” basis. On March 21, 2016 contractors attended a
mandatory pre-bid meeting and on April 1, 2016 bids were received
and publicly opened with the following results from three (3)
bidders:
Bidder Weighted
Score
Kirk Paving, Lakeside 397.34
Frank and Son Paving, Bonita 460.10
ABC Construction, San Diego 487.14
The responsive bidder with the lowest weighted score is determined
to be the lowest responsible bidder, in this case it is Kirk
Paving, of Lakeside, CA.
Kirk Paving served as the FY 2016 as-needed paving service
contractor for the District and has performed all required work
with no issues noted. Staff is confident that they will be able
to perform the required work.
Bids have been submitted on a unit-cost basis for the different
types of work typically required during paving. The types of work
are assigned a weight factor based on the District’s experience of
the frequency they will be employed during the term of the
agreement and these weights are multiplied by the unit cost to
determine a unit score. Unit scores are totaled to provide the
overall score of the bid and the contractor with the lowest overall
score is the low bidder. Please refer to Attachment B.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
The FY 2017 budget request includes $200,000 for as-needed paving
services. The project manager has projected that this requested
amount is sufficient to cover the anticipated expenses for the
paving needs in the 2017 fiscal year.
STRATEGIC GOAL:
Strategy: Stewards of Public Infrastructure.
Goal: Conduct the best practice preventative maintenance
activities.
LEGAL IMPACT:
None.
Attachment A: Committee Action Form
Attachment B: FY 2017 As-Needed Paving Services Score Sheet
ATTACHMENT A
SUBJECT/PROJECT: AUTHORIZE AGREEMENT WITH KIRK PAVING FOR ANNUAL AS-
NEEDED PAVING SERVICES
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee reviewed
this item at a meeting held on April 19, 2016 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.
ATTACHMENT B
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: May 4, 2016
SUBMITTED BY:
Dan Martin
Engineering Manager
PROJECT:
R2084-001103
DIV. NO. 1
APPROVED BY:
Rod Posada, Chief, Engineering
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: Reimbursement Agreement with Baldwin & Sons, LLC, a California
Limited Liability Company, for a Portion of the Capital
Improvement Program Project RecPL - 20-Inch, 680 Zone,
Village 2 – Heritage/La Media, Project Location Santa Victoria
Road
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District (District) Board of Directors (Board)
approve the request for the General Manager to execute a
Reimbursement Agreement with Baldwin & Sons, LLC, a California
Limited Liability Company (Baldwin & Sons) for the construction of a
20-inch recycled water pipeline on Santa Victoria Road between Santa
Carolina Road and Santa Alexia Avenue, for a portion of the Capital
Improvement Program Project RecPL - 20-Inch, 680 Zone, Village 2 –
Heritage/La Media, in an amount of $265,994.40 (see Exhibit A for
Project location).
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To obtain Board authorization for the General Manager to enter into a
Reimbursement Agreement (see Attachment C) with Baldwin & Sons, for
reimbursement of construction costs for a 20-inch recycled water
pipeline on Santa Victoria Road between Santa Carolina Road and Santa
2
Alexia Avenue, for a portion of the Capital Improvement Program
Project RecPL - 20-Inch, 680 Zone, Village 2 – Heritage/La Media, in
an amount of $265,994.40.
ANALYSIS:
Baldwin & Sons is developing Otay Ranch Village 2. As part of this
development, the District required the developer to prepare a Sub-
Area Master Plan (SAMP) to document the potable and recycled water
demands, existing facilities, and recommended facilities associated
with servicing the development. The Otay Ranch Village 2 SAMP was
approved by the District in June 2006. The approved SAMP also
identified the District’s Capital Improvement Program (CIP)
facilities, as defined by the District’s approved Water Resources
Master Plan, that are to be constructed concurrent with the Otay
Ranch Village 2 improvements. The Otay Ranch Village 2 CIP
facilities eligible for reimbursement includes the construction of a
20-inch recycled water pipeline in Santa Victoria Road).
Since the Developer is currently required to improve Santa Victoria
Road, the Developer has agreed to install approximately 2,000 linear-
feet of the 20-inch recycled water pipeline and enter into a
Reimbursement Agreement (see Attachment C) per Policy No. 26 with the
District.
In compliance with Policy No. 26, the Developer has received three
responsive bids for the pipeline construction and submitted copies to
the District. Staff evaluated and certified that the bids are in
compliance with Policy No. 26 requirements. The total reimbursable
bid items and soft costs for each of the responsive bidders is as
follows:
CONTRACTOR BID AMOUNT SOFT COSTS
(5% PER POLICY 26)
TOTAL
Cass Construction Inc. $253,328.00 $12,666.40 $265,994.40
LB3 Enterprises Inc. $276,972.00 $13,848.60 $290,820.60
Shilling - Paradise $296,774.00 $14,838.70 $311,612.70
In accordance with Policy No. 26, Baldwin & Sons is responsible for
selecting the lowest responsive and responsible bidder and will be
reimbursed for the CIP portions of the Project based on the unit
prices submitted with the lowest responsive responsible bid.
The District will inspect the contractors work for compliance with
the District’s approved plans and facilitate coordination with the
contractor and developer.
3
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
The total budget for CIP R2084, as recommended in the draft Fiscal
Year 2017 budget is $365,000. Expenditures to date are $599. Total
commitments to date, including this Agreement, are approximately
$330,994 (see Attachment B for budget detail).
The Project Manager anticipates that, based on the attached financial
analysis, the proposed budget, if approved by the Board will be
sufficient to support this Project.
Finance Department has determined that, under the current rate model,
100% of the funding will be available from the Expansion Fund.
STRATEGIC GOAL:
This Project supports the District’s Mission statement, “To provide
the best quality of water and wastewater service to the customers of
the Otay Water District in a professional, effective, and efficient
manner” and the District’s strategic goal, “To satisfy current and
future water needs for potable, recycled, and wastewater services.”
LEGAL IMPACT:
None.
DM/RP:mlc
P:\WORKING\CIP R2084 Santa Victoria Reimbursement\Staff Reports\BD 5-4-16, Staff Report, Baldwin
Reimbursement
Attachments: Attachment A – Committee Action
Attachment B – Budget Detail
Attachment C – Reimbursement Agreement
Exhibit A – Location Map
ATTACHMENT A
SUBJECT/PROJECT:
R2084-001103
Reimbursement Agreement with Baldwin & Sons, LLC, a
California Limited Liability Company, for a Portion of the
Capital Improvement Program Project RecPL - 20-Inch, 680
Zone, Village 2 – Heritage/La Media, Project Location Santa
Victoria Road
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee
(Committee) reviewed this item at a meeting held on April 19, 2016.
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.
5
ATTACHMENT B – Budget Detail
SUBJECT/PROJECT:
R2084-001103
Reimbursement Agreement with Baldwin & Sons, LLC, a
California Limited Liability Company, for a Portion of the
Capital Improvement Program Project RecPL - 20-Inch, 680
Zone, Village 2 – Heritage/La Media, Project Location Santa
Victoria Road
Date: April 5, 2016
Budget
365,000
Planning
- - - -
- - - -
Total Planning - - - -
Design 001102
- - - -
- - - -
Total Design - - - -
Construction
Conversion Cost Type - - -
Labor 65,000 599 64,401 65,000
Reimbursement Agreement 265,994 - 265,994 265,994 Baldwin & Sons, LLC
Total Construction 330,994 599 330,395 330,994
Grand Total 330,994 599 330,395 330,994
Vendor/Comments
Otay Water District
R2084-RecPL - 20-Inch, 680 Zone, Village 2-Heritage/La Media
Committed Expenditures
Outstanding
Commitment &
Forecast
Projected Final
Cost
Page 1 of 6
REIMBURSEMENT AGREEMENT
For
CAPITAL IMPROVEMENT PROGRAM WATER FACILITIES
Associated With
BALDWIN & SONS, LLC AT OTAY RANCH VILLAGE 2 SOUTH BBIP
R2084
This Reimbursement Agreement (“Agreement”) is entered into as of this _____ day of
___________, 2016, by and between the Otay Water District, a Municipal Water District formed
under the Municipal Water District Act of 1911 (“District”) and Baldwin & Sons, LLC a
California Limited Liability Company, with an address at 610 West Ash St., Suite 1500, San
Diego, CA 92101 (“Developer”), in view of the following facts and for the following purposes:
RECITALS
A. District’s Board of Directors has adopted a Master Plan and approved a Capital
Improvement Program (“CIP”) for all regional water facilities (“Planned CIP Facilities”)
throughout the District. There are a number of Planned CIP Facilities within and adjacent to Otay
Ranch Village 2 South BBIP (the “Development”), which Developer will construct within
District’s service area in the City of Chula Vista, California (the “Required CIP Facilities”).
B. In connection with the Development and the Required CIP Facilities, Developer
was required to complete a Sub-Area Master Plan (the “SAMP”) upon which the Required CIP
Facilities are identified. If required, the SAMP has been completed, is entitled “Subarea Water
Master Plan of Potable and Recycled Water for Otay Ranch Village 2,” dated June 1, 2006, and is
incorporated herein by reference. Developer will complete the Required CIP Facilities as
identified in the SAMP, if any, or/and as depicted or described in Exhibit A attached hereto.
C. Developer intends to develop its property, which will include substantial public
improvements, including the construction of certain Required CIP Facilities, as more fully
depicted or described in Exhibit B.
D. Developer recognizes that District will need to construct regional facilities to
support this Development, typically in advance of the Developer paying all capacity fees.
E. Developer shall conform to, and comply with, all of the conditions set forth in
District’s current Policy 26, attached hereto as Exhibit C.
F. Developer shall comply with all terms and conditions in the current District’s Code
of Ordinances and in the District’s Standard Specifications.
G. Developer agrees to encourage participation by Emerging Business Enterprises on
construction contracts related to this Agreement.
H. In coordination with this Agreement, Developer and District have entered into that
certain Agreement Otay Ranch Village 2 South BBIP for Construction of a Water System dated
March 16, 2016 (“Construction Agreement”), wherein Developer’s obligations regarding the
construction and completion of the Required CIP Facilities are more fully set forth. The Parties
Page 2 of 6
acknowledge that, where the terms and conditions of this Agreement conflict with the Construction
Agreement on matters pertaining to construction and completion of the Required CIP Facilities,
the Construction Agreement will control. Similarly, where the terms and conditions of the
Construction Agreement conflict with this Agreement on matters pertaining to the reimbursement
of Developer by District, this Agreement will control.
OPERATIVE PROVISIONS
NOW, THEREFORE, in consideration of the above Recitals and of the promises and
agreements contained herein, and for other good and valuable consideration, the receipt and
adequacy of which is hereby acknowledged, District and the Developer do hereby promise and
agree as follows:
1. Project Cost and Construction
Developer shall design, construct, install, and complete the Required CIP Facilities
in the manner more fully set forth in the Construction Agreement, and shall provide all funds
needed for the design, construction, installation, and completion of the Required CIP Facilities. In
order to remain eligible for reimbursement as provided under this Agreement, the Required CIP
Facilities must be constructed and completed within the time provided in the Construction
Agreement. Furthermore, to remain eligible for reimbursement, Developer must construct the
Required CIP Facilities in compliance with all applicable laws, rules and regulations. The
estimated cost of the Required CIP Facilities, as set forth in the Construction Agreement, is Two
Hundred Sixty-Five Thousand Nine Hundred Ninety-Four Dollars and forty cents ($265,994.40).
2. Reimbursement
Developer shall be entitled to reimbursement for the cost and expense of
constructing and completing the Required CIP Facilities consistent with District’s Policy No. 26
and consistent with the Construction Agreement. Except as provided in Policy 26, the District will
pay 100% of the reimbursement cost after the General Manager accepts the project and the Board
approves the request for reimbursement.
Developer shall submit a request for reimbursement in writing to District and shall
attach all documents necessary to demonstrate, to the satisfaction of District, that the Required CIP
Facilities have been completed and accepted and the costs and expenses have been actually and
reasonably incurred. The necessary documents shall include (i) copies of bid documents, (ii)
invoices, (iii) unconditional lien releases, and (iv) any other documentation as requested by the
District.
3. Termination
If not otherwise earlier terminated, this Agreement shall terminate on the earlier of
(i) the date on which the reimbursements contemplated herein have been paid, or (ii) five (5)
calendar years from the date first set forth above, which shall be the date of Board approval;
however, all of Developer’s warranties and indemnification obligations shall remain in effect until
terminated in accordance with their respective terms. District may terminate this Agreement and
its obligations upon thirty (30) days written notice to Developer, if the General Manager
Page 3 of 6
determines that Developer has failed to comply with its obligations under this Agreement or under
the Construction Agreement.
4. Plan Submittal
Developer shall be required to adhere to District’s process for submittal of
improvement plans, which includes securing bonding for all facilities to be constructed,
construction agreements, deposits for District staff time and project acceptance.
5. Record Keeping
Developer shall keep an accurate record of the actual costs to construct the Required
CIP Facilities for which reimbursement is requested, in accordance with generally accepted
accounting procedures. Developer shall allow an authorized District representative, during
Developer’s regular business hours and upon reasonable notice, to examine and duplicate any
records relevant to verifying the actual cost to construct the Required CIP Facilities, including,
without limitation, all contract bids and invoices. Any changes occurring during construction shall
be properly documented. Back-up documentation shall be kept by Developer for four (4) years
after the completion of the Required CIP Facilities and be provided to District for its review upon
its request.
6. Change Orders
No change orders will be permitted unless the change order results from a change
in the work, design or specifications initiated by District during the construction of the Required
CIP Facilities.
7. General Provisions
a. Incorporation of Recitals and Exhibits. The recitals set forth above and all
exhibits referenced in this Agreement are hereby incorporated by reference into this
Agreement to be given the same force and effect as if fully set forth herein.
b. Amendments. No amendment, modification, supplement, termination or
waiver of any provision of this Agreement shall be effective unless executed in writing by
both parties and then only in the specified instance and for the specific purpose given.
c. Notices. Any demand upon or notice required or permitted to be given by
one party to the other party shall be in writing. Except as otherwise provided by law, any
demand upon or notice required or permitted to be given by one party to the other party in
connection with this Agreement shall be effective (i) on the date a personal delivery is
accepted; (ii) on the date a facsimile of the notice is sent, or on the next business day if the
fax is sent after 5:00 p.m. or on a Saturday, Sunday or holiday, provided that receipt and
confirmation of the facsimile transmission is attached to a copy of the faxed notice; (iii)
on the second business day after mailing by certified or registered United States mail, return
receipt requested; or (iv) on the succeeding business day after mailing by Express Mail or
after deposit with a private delivery service of general use (e.g., Federal Express), postage
or fee prepaid as appropriate, addressed to the party at the address shown below:
Page 4 of 6
If to District: Otay Water District
2554 Sweetwater Springs Boulevard
Spring Valley, California 91978-2004
Attn: General Manager
If to Developer: Nick Lee
Baldwin & Sons, LLC
A California Limited Partnership
610 West Ash St
San Diego, California 92101
Telephone: (619) 234-4050
Facsimile: (619) 234-4088
Notice of change of address shall be given by written notice in the manner set forth in this
paragraph.
d. Indemnity. Developer agrees to defend (with attorney’s approved by
District), indemnify, protect, and hold harmless District, its elective and appointive boards,
officials, officers, agents, and employees from and against any and all claims asserted or
liability established after actual trial which arise from or are connected with or are caused
or claimed to be caused by Developer or its agents, officers or employees, in the
construction of the Required CIP Facilities, or any part thereof, and all expenses of
investigation and defending against same; provided, however, that Developer’s duty to
defend, indemnify and hold harmless shall not include any claims or liability determined
to be due to the sole or active negligence of the District, its elective and appointive boards,
officials, officers, agents, and employees.
e. Applicable Law and Venue. This Agreement and each provision herein
shall be interpreted in accordance with the laws of the State of California without regard to
its conflict of laws principles. The Parties agree that the proper venue for the resolution of
any disputes under this Agreement shall be with the Superior Court of the County of San
Diego.
f. Successors and Assigns. This Agreement and all of the terms, conditions,
and provisions hereof shall inure to the benefit of and be binding upon the parties hereto,
and their respective successors and assigns; provided, however, that no assignment of this
Agreement shall be made without written consent of the parties to this Agreement. Any
attempt by the Developer to assign or otherwise transfer any interest in this Agreement
without the prior written consent of the District shall be void.
g. Counterparts. This Agreement may be executed in multiple counterparts,
each of which counterpart, if fully executed, shall be deemed an original. No counterpart
shall be deemed to be an original or presumed delivered unless and until the counterpart
executed by the other party to this Agreement is in the physical possession of the party
seeking enforcement thereof.
Page 5 of 6
h. Effective Date. This Agreement shall not bind the parties and become
effective until such time as the authorized representative of Developer has executed the
Agreement, and District has approved and the authorized representative of District has
executed this Agreement.
i. Corporate Authority. The persons executing this Agreement on behalf of
the parties hereto represent and warrant that: (i) such party is duly organized and existing;
(ii) they are duly authorized to execute and deliver this Agreement on behalf of said party;
(iii) by so executing this Agreement, such party is formally bound to the provisions of any
other Agreement to which said is bound.
j. Waiver. The waiver of any term, condition or provision of this Agreement
is valid only as to that specific waiver and does not constitute a waiver of, and shall not be
construed to waive, any other term, condition or provision of this Agreement.
k. Compliance with Applicable Laws. Developer agrees to comply with all
federal, state and local laws, rules, regulations and ordinances that are now or may in the
future become applicable to Developer, Developer’s business, equipment and personnel
engaged in activities covered by this Agreement or arising out of the performance of such
activities, including the California Labor Code. Where approval by the District or a District
official is required, it shall be deemed general approval only and does not relieve Developer
of responsibility for compliance under this Section.
[Remainder of page intentionally left blank]
Page 6 of 6
IN WITNESS WHEREOF, this Agreement is executed by District and by Developer as of
the date first above written.
OTAY WATER DISTRICT
A California Municipal Water District
By: ___________________________
General Manager
Approved as to Form:
_________________________________
General Counsel
BALDWIN & SONS, LLC
A CALIFORNIA LIMITED LIABILITY COMPANY
By: ___________________________
Its Vice President
Date: ___________________________
OTAY WATER DISTRICT20-INCH RECYCLED WATER MAINLOCATION MAP
EXHIBIT A
CIP R2084F
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R2084RecPL - 20-Inch, 680 Zone, Village 2 - Heritage/La Media
Stephen Beppler
6/2/2004
R2083, R2085
1
22
2
$365,000
PROJECT MANAGER:
ORIGINAL APPROVED DATE:
RELATED CIP PROJECTS:
PROJECT TITLE:CIP Number:
DIRECTOR DIVISION:
I.D. LOCATION:
PRIORITY:
BUDGET AMOUNT:
DESCRIPTION OF PROJECT:
Construction of approximately 2,000 feet of 20-inch pipeline within the 680 Pressure Zone in Village 2 in Santa Victoria Road
from Santa Carolina Road to Santa Alexia Avenue.
JUSTIFICATION OF PROJECT:
This project will provide transmission capacity for the recycled water supply pumped from the 680-1 Pump Station to the 680 and
higher pressure zones. Significant energy savings will occur due to lower total dynamic head requirements for the 680-1 Pump
Station. Funding opportunity is the United States Bureau of Reclamation Water Reclamation and Reuse Program, Title XVI of
P.L. 102-575.
COMMENTS:
This is a developer driven project. A reimbursement agreement is expected to be considered by the Board in FY 2017.
Developer budget is 2,000 LF at a cost of $150 per foot for a total of $300,000
Inspection and staff budget is $65,000
This CIP budget was reduced from $970,000 to $365,000 for the FY 2017 CIP budget.
FUNDING SOURCE: Expansion Betterment Replacement New Water Supply Total
Expansion 100 % 0 %0 % 0 % 100 %
TOTAL:100 % 0 % 0 % 0 % 100 %
FUND DETAILS:
EXPENDITURE SCHEDULE (X $1,000):
FY FY FY FY FY FY FY
2017 2018 2019 2020 2021 2022 Total
$10 $40 $315 $0 $0 $0 $365
PRIOR YEARS:
TOTAL
$0
OTAY WATER DISTRICT
CAPITAL IMPROVEMENT PROGRAM
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
DISTRICT ADMINISTRATION OF REIMBURSEMENT
AGREEMENTS
Policy
Number
Date
Adopted
Date
Revised
26 2/10/93 7/05/06
PURPOSE
This policy establishes guidelines for how the District will
administer reimbursement agreements for facilities, both Master Plan
and Non-Master Plan. It also describes when and how the District will
participate in the cost of such facilities.
BACKGROUND
Policy 26 requires that development which creates the need for new
facilities must bear all costs to construct and finance the on-site,
in-tract and off-site water, wastewater, and recycled water systems.
“On-site” facilities are defined as those pipelines, pump stations and
reservoirs required within a developer’s project boundaries. “Off-
site” facilities are those facilities located outside a project's
boundary that are required to serve the project. “In-tract”
facilities are defined as those non-regional facilities that serve
only the project being constructed. These facilities are typically 6
inch through 12 inch pipelines. In-tract facilities are the sole
responsibility of the developer/property owner until the facilities
and all required property easements are dedicated to, and accepted by,
the District pursuant to authority granted by the Board to the General
Manager.
The District's Master Plan includes all regional on-site and off-site
facilities anticipated to be necessary to provide service throughout
the District. The District's capacity fees have been calculated to
pay for the cost of all the regional facilities identified in the
Master Plan including the developer/property owner portion of such
facilities. The District does not subsidize development but it does
undertake responsibility to insure that those regional facilities
necessary to serve a particular development are constructed and that
the costs associated with the construction of said facilities is
fairly distributed among all users.
POLICY
A. Master Plan Facilities-Reimbursement by the District: For
facilities identified in the Master Plan, both on-site and off-site,
the District may reimburse the developer for construction and design
costs if the project meets the following guidelines:
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
DISTRICT ADMINISTRATION OF REIMBURSEMENT
AGREEMENTS
Policy
Number
Date
Adopted
Date
Revised
26 2/10/93 7/05/06
Page2of7
1. The project must be in the District’s approved five-year Capital
Improvement Program (CIP) at the time of the request, and shall
not exceed the CIP budget amount without prior Board approval.
2. The District has approved a Sub-Area Master Plan (SAMP) and any
required maps, upon which the facilities are clearly described.
3. The developer makes an irrevocable offer to dedicate the
facilities and any easements required for the operation and
maintenance of the facilities to the District, which offer is
accepted by the General Manager and all applicable language and
documentation of the dedication(s) is prepared and recorded, all
in the manner authorized by the Board.
4. The developer enters into an Agreement for Construction of a
Water System with the District.
5. The developer/property owner obtains bids from qualified
contractors and provides copies of the bids to the District. The
developer/property owner is responsible for selecting the lowest
responsive responsible bidder. The developer/property owner will
be reimbursed for the CIP portions of the project based on the
unit prices submitted with the lowest responsive responsible bid.
6. The cost of addressing environmental issues, such as burying a
reservoir, shall not be reimbursable unless they are currently
addressed in the District's Master Environmental Impact Report
and CIP.
7. All soft costs, such as engineering, inspection, bonds, etc.,
will be included in the reimbursement cost at five percent of the
construction costs.
8. Except as provided below, the District will pay 100 percent of
the reimbursement cost after the General Manager accepts the
project.
9. The District may elect to finance the facilities by borrowing if,
after analysis by the Finance Department, it is determined that
the borrowing fits into the District's financial plan as outlined
in Policy 25.
10. If for any reason reimbursement funds are not vailable at the
time the project is operationally complete, the District may
elect to defer or a portion of the reimbursement the District
determines is due the developer until the General Manager accepts
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
DISTRICT ADMINISTRATION OF REIMBURSEMENT
AGREEMENTS
Policy
Number
Date
Adopted
Date
Revised
26 2/10/93 7/05/06
Page3of7
the dedication of the project and until all liens, claims and/or
bonds, as applicable, have been released in the manner provided
under the Agreement for Construction of a Water System.
11. Funds for reimbursement shall be carried as a CIP until the
reimbursement is made.
12. Each reimbursement agreement requires approval by the Board. A
Staff Report will be prepared and reviewed with the Finance
Department prior to presentation to the Board for approval.
13. This type of reimbursement agreement ends five (5) years after
Board’s original approval. The reimbursement agreement may be
terminated prior to said (5) year term by the General Manager
upon a determination that the developer has failed to comply with
its obligations under the Reimbursement Agreement or the
Agreement for Construction of a Water System.
14. If the reimbursement agreement expires prior to the facilities by
the District or prior to payment of reimbursement, the Developer
shall no longer be entitled to reimbursement. The Developer may
submit new documentation andrequest that the District enter into
a new reimbursement agreement. If the District agrees to enter
into a new reimbursement agreement for the facilities, however,
the District may revise the terms and amounts of reimbursement at
its discretion based on information available at the time of the
request.
15. All reimbursement requests shall be submitted to the Board for
consideration and shall not be processed without prior Board
approval.
B. Non-Master Plan Facilities-Reimbursement to Developer by Future
Users: Occasionally, a developer/property owner requests the District
to administer a reimbursement agreement to collect money from future
customers who connect to the facility built by the developer/property
owner. If the District agrees, the District collects the
reimbursement amount from each customer connecting to the facility,
together with any other District connection fees. The reimbursement
portion of the customer’s payment is forwarded by the District to the
developer/property owner as reimbursement.
The District may administer this type of reimbursement agreement if
the developer/property owner's project meets the following criteria
and guidelines:
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
DISTRICT ADMINISTRATION OF REIMBURSEMENT
AGREEMENTS
Policy
Number
Date
Adopted
Date
Revised
26 2/10/93 7/05/06
Page4of7
1. The developer/property owner demonstrates the facilities to be
constructed have adequate capacity to serve future customers.
2. The developer/property owner requests and executes a
reimbursement agreement, which is presented to the Board for
approval in conjunction with the presentation of an agreement to
construct.
3. The property owner deposits with the District the estimated cost
for District staff to prepare a nexus study and obtain Board
approval for the reimbursement agreement. District staff will
provide a written estimate of the required deposit to the
property owner within 15 days of the property owner’s request.
4. The property owner provides three (3) bids from qualified
contractors for the purpose of establishing the cost of the
facilities and the portion of the reimbursement amount which is
to be allocated to future connections.
5. A nexus study shall be performed by District staff to identify
those who may benefit from the construction of the proposed
facility and the amount they shall reimburse the
developer/property owner who constructed the facility.
6. Prior to the public notice being sent to those property owners
affected by the reimbursement agreement, an informational staff
report will be presented to the Board.
7. The District shall notice all those property owners that will be
subject to the reimbursement charge. These property owners will
then be responsible to pay their fair share of the cost of the
facilities at such time as they connect to the system. The fair
share will be based on their Assigned Service Unit/Equivalent
Dwelling Unit (ASU/EDU) contribution to the total projected
ASU/EDU to use the system. The reimbursement charge will be in
addition to any other fees a property owner would pay to the
District to obtain service.
8. Each reimbursement agreement requires approval by the Board.
Prior to presenting a reimbursement agreement to the Board, staff
must obtain two originals signed by an authorized representative
of the developer/property owner. A Staff Report must then be
prepared and reviewed with the Finance Department prior to
presentation to the Board for approval.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
DISTRICT ADMINISTRATION OF REIMBURSEMENT
AGREEMENTS
Policy
Number
Date
Adopted
Date
Revised
26 2/10/93 7/05/06
Page5of7
9. This type of reimbursement agreement shall be valid for 10 years
from the date of Board approval. After the 10 year period has
lapsed the collection of the reimbursement amount by the District
shall cease.
10. Concurrently with submission of a signed reimbursement agreement,
the developer/property owner must pay an administrative fee to
the District to defray costs related to the review of the request
and the negotiation and execution of the reimbursement agreement.
The amount of the administrative fee will be calculated at the
staff rate existing at the time of said submission.
11. In addition, concurrently with payment of the fee described
above, developer must pay a fee to defray costs estimated to be
incurred per each connection to be established during the term of
the reimbursement agreement. The amount of this fee will be
calculated based on an estimated 6 man hours per connection. The
staff rate in existence at the time the reimbursement agreement
is executed will be used as a base and it will be projected to
change each year to account for changes in the COLA, as
determined by the District’s finance department.
12. The District will not distribute any reimbursement funds to the
developer/property owner until the project has been accepted by
the Board. The distribution of reimbursement funds will occur as
the District collects the funds from new customers who connect to
the facility, but not more frequently than once per year.
13. District staff shall collect the reimbursement amount due at the
same time the standard District capacity fees for the new service
are collected.
14. If the reimbursement agreement expires prior to the facilities by
the District or prior to payment of reimbursement, the Developer
shall no longer be entitled to reimbursement. The Developer may
submit new documentation andrequest that the District enter into
a new reimbursement agreement. If the District agrees to enter
into a new reimbursement agreement for the facilities, however,
the District may revise the terms and amounts of reimbursement at
its discretion based on information available at the time of the
request.
15. All reimbursement requests shall be submitted to the Board for
consideration and shall not be processed without prior Board
approval.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
DISTRICT ADMINISTRATION OF REIMBURSEMENT
AGREEMENTS
Policy
Number
Date
Adopted
Date
Revised
26 2/10/93 7/05/06
Page6of7
C. Non-Master Plan Facilities-Reimbursement to Developer by the
District: Normally the District would not participate in the cost of
facilities which are not identified in the Master Plan. These
facilities are of benefit only to the adjoining property and should
ordinarily be financed solely by the developer/property owner
proposing the new facility. Nonetheless, there may be circumstances
where the General Manager determines that it is appropriate for the
District to participate in the cost of a non-Master Plan facility.
Typical reasons would be in order to accommodate future growth or
betterment of the system. In these instances, the District may
establish special fees to recover the reimbursement costs from
benefiting property owners as they connect to the system.
The District may reimburse the developer/property owner for
construction costs if the project meets the following criteria and
guidelines:
1. The General Manager has determined that it is appropriate for the
District's customers to participate in the construction of the
project.
2. The developer/property owner shall obtain three (3) bids from
qualified contractors and provide copies of the initial bids to
the District. The developer/property owner is responsible for
selecting the lowest responsive bidder. The developer/property
owner will be reimbursed for the CIP portions of the project
based on the unit prices submitted with the lowest responsive
bid.
3. A nexus study will be performed by the District to identify those
property owners who may benefit from the construction of the
proposed facility.
4. Prior to the public notice being sent to those property owners
affected by the reimbursement agreement, an informational Staff
Report shall be presented to the Board.
5. The District shall notice all those property owners which will be
subject to the reimbursement charge. These properties will then
be responsible to pay their fair share of the cost of the
facilities, plus interest, at such time as they connect to the
system.
6. The developer/property owner shall request and execute the
reimbursement agreement with the District prior to awarding any
contracts for construction.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
DISTRICT ADMINISTRATION OF REIMBURSEMENT
AGREEMENTS
Policy
Number
Date
Adopted
Date
Revised
26 2/10/93 7/05/06
Page7of7
7. Each reimbursement agreement requires approval by the Board. A
Staff Report shall be prepared and reviewed with the Finance
Department prior to presentation to the Board for approval.
8. Except as provided below, the District will pay 100 percent of
the reimbursement cost after the General Manager accepts the
project.
9. The District may elect to finance the facilities by borrowing, if
it is determined that borrowing is in the best interest of the
District's customers.
10. If for any reason reimbursement funds are not available at the
time the project is operationally complete, the District may
elect to defer the reimbursement until the General Manager
determines that it is appropriate to make payments.
11. Funds for reimbursement shall be carried as a CIP until the
reimbursement has been made.
12. This type of reimbursement agreement contains no end date for the
collection by the District of its contributed share of the cost,
and shall be the responsibility of all current and subsequent
property owners.
13. District staff shall collect the reimbursement amount due at the
same time the standard District capacity fees for the new service
are collected.
14. If the reimbursement agreement expires prior to the facilities by
the District or prior to payment of reimbursement, the Developer
shall no longer be entitled to reimbursement. The Developer may
submit new documentation andrequest that the District enter into
a new reimbursement agreement. If the District agrees to enter
into a new reimbursement agreement for the facilities, however,
the District may revise the terms and amounts of reimbursement at
its discretion based on information available at the time of the
request.
15. All reimbursement requests shall be submitted to the Board for
consideration and shall not be processed without prior Board
approval.
OTAY WATER DISTRICT20-INCH RECYCLED WATER MAINLOCATION MAP
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