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HomeMy WebLinkAbout03-21-13 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 THURSDAY March 21, 2013 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. ADOPT RESOLUTION NO. 4209 TO AUTHORIZE AN APPLICATION FOR ENVI- RONMENTAL MITIGATION LAND MANAGEMENT GRANT FUNDS TO THE SAN DIEGO ASSOCIATION OF GOVERNMENT, COMMITTING THE OTAY WATER DIS- TRICT TO PROVIDE MATCHING FUNDS AND AUTHORIZING DISTRICT STAFF TO ACCEPT GRANT FUNDS AND EXECUTE THE GRANT AGREEMENT FOR THE CACTUS WREN HABITAT PROJECT AT THE DISTRICT’S HABITAT MANAGE- MENT AREA (COBURN-BOYD) [5 minutes] 4. ADOPT RESOLUTION NO. 4208 FIXING TERMS AND CONDITIONS FOR THE AN- NEXATION OF CERTAIN REAL PROPERTY OWNED BY SLF IV McMILLIN MILLE- NIA JV, LLC, APNs: 643-060-18, 23, 24, AND 25-00, TO THE OTAY WATER DIS- TRICT’S IMPROVEMENT DISTRICT NOs. 22 AND 27 (MARTIN) [5 minutes] 5. APPROVE A REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND THE OTAY WATER DISTRICT FOR REIMBURSEMENT TO THE CITY FOR CONSTRUCTION COSTS ASSOCIATED WITH PHASE II OF THE OTAY LAKES ROAD 12-INCH RECYCLED WATER PIPELINE AND POTABLE UTILITY RELOCATION PROJECT IN AN AMOUNT NOT-TO-EXCEED $97,350 (MARTIN) [5 minutes] 2 6. FISCAL YEAR 2013 MID-YEAR STRATEGIC PLAN AND PERFORMANCE MEASURES UPDATE REPORT (STEVENS) [10 minutes] 7. SAN DIEGO COUNTY WATER AUTHORITY UPDATE (WATTON) [10 minutes] 8. ADJOURNMENT BOARD MEMBERS ATTENDING: David Gonzalez, Chair Gary Croucher 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 March 15, 2013 I posted a copy of the foregoing agenda near the regu- lar 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 March 15, 2013. /s/ Susan Cruz, District Secretary STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: April 3, 2013 SUBMITTED BY: Lisa Coburn-Boyd Environmental Compliance Specialist PROJECT NO./ SUBPROJECT: P2495- 001101 DIV. NO. 5 APPROVED BY: Rod Posada, Chief, Engineering German Alvarez, Asst. General Manager Mark Watton, General Manager SUBJECT: Resolution Authorizing an Application for Environmental Mitigation Land Management Grant Funds to the San Diego Association of Governments, Committing to Providing Matching Funds, and Authorizing Staff to Accept Grant Funds and Execute Grant Agreement GENERAL MANAGER’S RECOMMENDATION: Approve Resolution No. 4209 (Attachment B), to authorize an application for Environmental Mitigation Land Management Grant Funds to the San Diego Association of Governments (SANDAG), committing the Otay Water District (District) to provide matching funds and authorizing District staff to accept grant funds and execute the grant agreement for the Cactus Wren Habitat Project at the District’s Habitat Management Area (HMA)(see Exhibits A and B for Project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: The purpose of this resolution is to authorize an application that was submitted by District staff in February 2013 for grant funds through the SANDAG TransNet Environmental Mitigation Program for a Cactus Wren Habitat Project at the HMA. The resolution also commits AGENDA ITEM 3 2 the District to provide matching funds and authorizes District staff to accept the grant funds and execute the grant agreement. ANALYSIS: In February 2013, District staff worked with the current HMA consultant to put together a grant proposal for a Cactus Wren Habitat Project at the District’s HMA (see Attachment C for grant application). The proposal was submitted to SANDAG for Fiscal Year 2013 funding under their Environmental Mitigation Program (EMP) which provides funding for regional land management and biological monitoring. The Cactus Wren Habitat Project (Project) consists of the planting of 4.2 acres of coast cholla dominated habitat at two sites located within the HMA in order to create habitat for the coastal cactus wren (see Exhibit B for the site locations). The two sites, representing the 4.2 acres, were chosen for the Project and are in close proximity to each other in order to attract a minimum of two (2) pairs of cactus wren to the HMA preserve. The Project also includes enhancement of the existing coastal sage scrub with seeding among the planted cholla cacti. The advantage of the sites at the HMA is that they are located between Sweetwater Reservoir and Otay Lakes and are part of a movement corridor linking established cactus wren populations. Past records for the HMA indicate that the cactus wren was historically located within the HMA and were found on site as late as 2005. Creating suitable habitat would allow for the repopulation of this area and aid in the reestablishment of cactus wren habitat within the corridor. It is expected that this Project will increase breeding habitat for coastal cactus wren, a species of special concern, as well as increase the likelihood that the species will utilize this growing corridor between Sweetwater Reservoir and Otay Lakes. The HMA was burnt in the 2007 Harris Fire leaving behind degraded Diegan coastal sage scrub. The Project proposes to increase the quality of the habitat that was originally Diegan coastal sage scrub. The duration of the Project is three years from the notice to proceed. District staff was informed that the Cactus Wren Habitat Project had been recommended for funding by the EMP Working Group ad hoc committee on March 4, 2013. The EMP Working Group is recommending full funding of the Project in the amount of $88,840. The District must provide matching funds in the amount of $8,675.67. The matching funds are available in the HMA budget because one of the projects included in that budget, the Wueste Road mitigation site, has been postponed indefinitely. The total budget allocated within the HMA budget for the Wueste Road mitigation site is $44,986.80. 3 The resolution to be adopted by the District’s Board of Directors includes the requirements of SANDAG’s Board Policy 035, Section 4.1. Adoption of this resolution is a requirement of SANDAG, once a grantee has been informed that their project was recommended to the EMP Working Group. It must be submitted to SANDAG by April 15, 2013. FISCAL IMPACT: Joseph Beachem, Chief Financial Officer None. 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. LCB:jf P:\WORKING\CIP P2495 - San Miguel HMA and Assoc. Mitigation Projects\Staff Reports\BD 4-3-13, Staff Report, SANDAG Transnet Grant Application Authorization Resolution.doc Attachments: Attachment A – Committee Action Attachment B – Resolution Attachment C – Grant Application Exhibit A – Location Map Exhibit B – Cactus Wren Habitat Sites ATTACHMENT A SUBJECT/PROJECT: P2495-001101 Resolution Authorizing an Application for Environmental Mitigation Land Management Grant Funds to the San Diego Association of Governments, Committing to Providing Matching Funds and Authorizing Staff to Accept Grant Funds and Execute Grant Agreement COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on March 21, 2013. The Committee supported Staff's recommendation. NOTE: The “Committee Action” is written in anticipation of the Committee moving the item forward for Board approval. This report will be sent to the Board as a Committee approved item, or modified to reflect any discussion or changes as directed from the Committee prior to presentation to the full Board. ATTACHMENT B RESOLUTION NO. 4209 AUTHORIZING AN APPLICATION FOR ENVIRONMENTAL MITIGATION LAND MANAGEMENT GRANT FUNDS TO THE SAN DIEGO ASSOCIATION OF GOVERNMENTS FOR OWD CACTUS WREN PROJECT, COMMITTING TO PROVIDE MATCHING FUNDS, and AUTHORIZING STAFF TO ACCEPT GRANT FUNDS AND EXECUTE GRANT AGREEMENT WHEREAS, in November 2004, the voters of San Diego County approved SANDAG Ordinance 04-01, which extended the TransNet ½ cent sales and use tax through 2048 (TransNet Ordinance); and WHEREAS, the TransNet Extension Ordinance contains provisions for the creation of an Environmental Mitigation Program (EMP), which began being funded by the TransNet Ordinance on April 1, 2008; and WHEREAS, in November 2012, SANDAG issued its sixth Call for Projects from entities wishing to apply for a portion of the EMP funds for use on environmental land management projects meeting certain criteria; and WHEREAS, Otay Water District wishes to receive $88,840.00 in EMP Grant funds for the following project: OWD Cactus Wren Project; and WHEREAS, Otay Water District understands that the EMP Grant funding is fixed at the programmed amount, and therefore project cost increases which exceed the grant awarded will be the sole responsibility of the grantee. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Otay Water District that the Otay Water District is authorized to submit an application to SANDAG for the Fiscal Year 2013 Land Management Grant funding in the amount of $88,840.00 for the OWD Cactus Wren Project; and BE IT FURTHER RESOLVED that, if a grant award is made by SANDAG to fund the Cactus Wren Project, the Board of Directors of the Otay Water District commits to providing $8,657.67 of matching funds and/or in-kind contributions as set forth in its grant application and authorizes Otay Water District staff to accept the grant funds and execute the grant agreement included in the November 2012 Call for Projects with SANDAG. PASSED AND ADOPTED by the Otay Water District Board of Directors this third day of April, 2013 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ________________________ President ATTEST: _________________________ District Secretary P:\Working\P2495-San Miguel HMA and Assoc. Mitigation Projects\Staff Reports\Exhibit A EXHIBIT A ! VICINITY MAP NTS ?ò Aä ?Ë ;&s DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ?p SITE HMA SITE OTAY WATER DISTRICTEnvironmental Setting MapSan Miguel Habitat Management Area F CIP P2495 F Exhibit C Coastal Cactus Wren (Campylorhynchus brunneicapillus sandiegensis) STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: April 3, 2013 SUBMITTED BY: Dan Martin Engineering Manager PROJECT: Various DIV. NO. ALL APPROVED BY: Rod Posada, Chief of Engineering German Alvarez, Asst. General Manager Mark Watton, General Manager SUBJECT: Millenia Water Annexation Request to Improvement Districts (IDs) 22 and 27 (APNs 643-060-18, 23, 24, and 25-00) GENERAL MANAGER’S RECOMMENDATION: Adopt Resolution No. 4208, fixing terms and conditions for the annexation of certain real property owned by SLF IV McMillin Millenia JV, LLC, APNs: 643-060-18, 23, 24, and 25-00, to the Otay Water District Improvement District Nos. 22 and 27. COMMITTEE ACTION: Please see Attachment A. PURPOSE: The purpose of the proposed annexation is to provide water service to parcels owned by SLF IV McMillin Millenia, JV, LLC, located within Chula Vista, California (APNs 643-060-18, 23, 24, and 25-00) ANALYSIS: A written request and Petition signed by Mr. Don Mitchell, Senior Vice President of McMillin Land Development, has been received for the annexation of APNs 643-060-18, 23, 24, 25-00 into Improvement District Nos. 22 and 27 for water service. The total acreage to be annexed is 218.67 acres. The property is AGENDA ITEM 4 within the sphere of Otay Water District and will be part of Improvement Districts 22 and 27 after the Board of Directors approve this request. The property is located at Birch Road and Eastlake Parkway in the City of Chula Vista in the County of San Diego. FISCAL IMPACT: Joseph Beachem, Chief Financial Officer The property owners will pay the District’s processing fee of $744, water meter annexation fees in effect at the time the meters are purchased (current fee is $1,553.29 per EDU), any additional meter costs and annexation fees as established in the attached Resolution, and $6,560.10 in annual availability fees. STRATEGIC GOAL: Provide water service to meet increasing customer needs. LEGAL IMPACT: No legal impact. DM:tc Attachments: Attachment A - Committee Action Attachment B - Resolution Exhibit A - Legal Description Exhibit B - Legal Map ATTACHMENT A SUBJECT/PROJECT: Various Millenia Water Annexation Request to Improvement Districts (IDs) 22 and 27 (APNs 643-060-18, 23, 24, and 25-00) COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on March 21, 2013 and 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. Page 1 of 4 RESOLUTION NO. 4208 A RESOLUTION OF THE BOARD OF DIRECTORS OF OTAY WATER DISTRICT APPROVING THE ANNEXATION TO OTAY WATER DISTRICT IMPROVEMENT DISTRICT NOS. 22 and 27 OF THOSE LANDS DESCRIBED AS "MILLENIA WATER ANNEXATION” (FILE NO. ENG70- 10-140/DIV. 1) WHEREAS, a letter has been submitted by SLF IV MCMILLIN MILLENIA JV, LLC, C/O SENIOR VICE PRESIDENT DON MITCHELL, the owners and party that has an interest in the land described in Exhibit "A," attached hereto, for annexation of said land to Otay Water District Improvement District Nos. 22 and 27 pursuant to California Water Code Section 72670 et seq.; and WHEREAS, pursuant to Section 72680.1 of said Water Code, the Board of Directors may proceed and act thereon without notice and hearing. NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT FINDS, RESOLVES, ORDERS AND DETERMINES as follows: 1. A depiction of the area proposed to be annexed, and the boundaries of IDs 22 and 27 following the annexation, is set forth on a map in Exhibit “B” filed with the Secretary of the District, which map shall govern for all details as to the area proposed to be annexed. 2. The purpose of the proposed annexation is to make water service available to the area to be annexed, which availability constitutes a benefit to said area. 3. The Board finds and determines that the area proposed to be annexed to IDs 22 and 27 will be benefited by such annexation and that the property currently within IDs 22 and 27 will also be benefited and not injured by such annexation because Attachment B Page 2 of 4 after the annexation a larger tax base will be available to finance the water facilities and improvements of IDs 22 and 27. 4. The Board of Directors hereby declares that the annexa- tion of said property is subject to the owners complying with the following terms and conditions: (a) The petitioners for said annexation shall pay to Otay Water District the following: (1) The annexation processing fee at the time of application; (2) State Board of Equalization filing fees in the amount of $2,000; (3) The water annexation fee at the time of connection to the Otay Water District water system; (4) Yearly assessment fees will be collected through the County Tax Assessor’s office in the amount of $30 for APNs 643-060-18, 23, 24 and 25-00; (5) In the event that water service is to be provided, Petitioners shall pay all applicable water meter fees per Equipment Dwelling Unit (EDU) at the time the meter is purchased; and (6) Payment by the owners of APNs 643-060-18, 23, 24 and 25-00 of all other applicable local or state agency fees or charges. Page 3 of 4 (b) The property to be annexed shall be subject to taxation after annexation thereof for the purposes of the improvement district, including the payment of principal and interest on bonds and other obligations of the improvement district, author- ized and outstanding at the time of annexation, the same as if the annexed property had always been a part of the improvement district. 5. The Board hereby declares the property described in Exhibit "A" shall be considered annexed to IDs 22 and 27 upon passage of this resolution. 6. The Board of Directors further finds and determines that there are no exchanges of property tax revenues to be made pursuant to California Revenue and Taxation Code Section 95 et seq., as a result of such annexation. 7. The annexation of APNs 643-060-18, 23, 24 and 25-00 to the District’s Improvement Districts 22 and 27 is hereby designated as the “MILLENIA WATER ANNEXATION.” 8. Pursuant to Section 57202(a) of the Government Code, the effective date of the MILLENIA WATER ANNEXATION shall be the date this Resolution is adopted by the Board of Directors of the Otay Water District. 9. The General Manager of the District and the Secretary of the District, or their respective designees, are hereby ordered to take all actions required to complete this annexation. Page 4 of 4 PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting held this 3rd day of April, 2013. President ATTEST: __________________________________ District Secretary r, , EXHmlT "A" LEGAL DESCRIPTION OTAY RANCH MILLENIA (EASTERN URBAN CENTER) ANNEXATION PARCEL OTAY WATER DISTRICT I.D. 22 & 27 Parcel 3 of Parcel Map no. 18481, in the City of Chula Vista, County of San Diego, State of California, filed May 31, 2000 in the Office of the County Recorder of San Diego County, excepting therefrom the land described in that certain Irrevocable Offer of Dedication of fee interest recorded May 22, 2003 as Instrument no. 2003-0604602 and accepted by that certain acceptance of Irrevocable Offer of Dedication of fee interest recorded May 22, 2003 as Instrument no. 2003-0604603 and conveyed to the State of California by grant deed recorded May 22, 2003 as Instrument no. 2003-0604607, also excepting therefrom that portion of land granted to the State of California on August 12, 2011 as Document no. 2011-04] 5116, together with portions of land granted to McMillin Otay Ranch, LLC on August 6, 2010 as File no. 2010­ 0403982; all ofOfficiaJ Records of San Diego County, California. /-Z~20I:3~ DATE LS 7019 Page 1 of 1 OTAY WATER DISTRICT ANNEXATION TO LD. 22 & 27 PREPARED BY: PROtECT D£SIGN CONSULTANTS PORTION GRANTED TO THE STA1E OF CAUFORNIA ON MA Y 22, 2003 AS DOCUMENT NO. 2003-0604007, RIGHT OF WAY PARCEL 32019-2 i pJVJ ?04-J-j SHE£T1OF1 -:15479 ./" LOT 3 GARY L Hus-:5 LS. NO. 7019 LOT 18 OTAY RANcHo ~~ BIRCH-ROAD - APN 643-060-25 PARCEL 3 'r\,~1 PJ\jJ -J84a-J APN 643-060-24 PORTION GRANTED TO MCMILUN OTA Y RANCH, liC ON AUG. 6, 2010 AS DOCUMENT NO. 2010-0403982 ft'-APN 643-060-23 , / PORTION GRAN1ED TO MCMIlliN OTAY RANCH, liC ON AUG. 6, 2010 AS DOCUMENT NO. 2010-0403982 ---­PORTION GRANTED TO THE STA 1E OF CAUFORNIA ON AUG. 12, 2011 AS DOCUMENT NO. 2011-0415116, RIGHT OF WA Y PARCEL 34750-1 ) EXHIBIT "B" LOT 2 I LOT 3 \ _ ~ r Lor i JvJAPII-J5037 ~ ~ Ii: m~ I ot;\.'! w Lt F ~ ~ I. tl l -­LOT 9 - LOT 6 ~ o~«\-­ LOT 2 J\jjAP -J50-J4 JvjAP LOT 8 SAN DIEGO, CALIFORNIA 92101 701 B STREET SUITE 800 VICINITY MAP NOT TO SCALE o 600' I I SCAlE: 1'=600' NOTE TOTAL AREA 'MTHIN HEAVY BOUNDARY: 218.667 ACRES i STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: April 3, 2013 SUBMITTED BY: Dan Martin Engineering Manager PROJECT: R2094-006000 P2496-001103 DIV. NO. 4 APPROVED BY: Rod Posada, Chief, Engineering German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Authorization to Execute a Reimbursement Agreement Between the City of Chula Vista and the Otay Water District for Phase II of the Otay Lakes Road 12-Inch Recycled Water Pipeline and Potable Utility Relocation Project GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) authorize the General Manager to execute an Agreement between the City of Chula Vista (City) and the District for reimbursement to the City for construction costs associated with Phase II of the Otay Lakes Road 12-Inch Recycled Water Pipeline and Potable Utility Relocation Project in an amount not to exceed $97,350 (see Exhibit A for Project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to execute an Agreement (Exhibit B) with the City of Chula Vista for costs associated with construction of the Recycled and Potable Utility Relocations. The Agreement provides that the District will reimburse the City for up to $97,350. AGENDA ITEM 5 2 ANALYSIS: The City of Chula Vista plans to continue its work to complete roadway widening improvements on portions of Otay Lakes Road in Chula Vista as part of its goal to maintain and improve City streets. The work is being constructed in phases. Phase I work which constructed improvements on Otay Lakes Road from Ridgeback Road to approximately 750 feet south of East “H” Street was completed in March 2011. During Phase I, District staff and City staff coordinated their efforts and combined contract documents for the Recycled Pipeline, Potable Utility Relocations, and the Road Improvement work into the City’s bid package in order to minimize impacts to the Chula Vista community. The District entered into a reimbursement agreement with the City to fund the water infrastructure improvements. These improvements included the construction of the recycled pipeline in Otay Lakes Road which brought a source of recycled water to customers including Southwestern College. The City’s construction for Phase II work which will construct roadway widening improvements from approximately 750 feet south of East “H” Street to Telegraph Canyon Road is scheduled to begin in April 2013. The water infrastructure work included in Phase II consists of relocating existing recycled and potable water facilities including meters and appurtenances to support the roadway widening work. The construction cost associated with the recycled and potable utility relocations is estimated at $97,350. The attached agreement (Exhibit B) provides for reimbursement to the City to cover the actual “as-bid” construction cost plus a 10% contingency for the purpose of reimbursing the City for progress payments to the contractor. FISCAL IMPACT: Joseph Beachem, Chief Financial Officer Funding for the overall Project comes from two CIP projects, P2496 – Otay Lakes Road Utility Relocations and R2094 – Potable Irrigation to Recycled. The total budget for CIP P2496, as approved in the FY 2013 budget, is $275,000. Expenditures to date are $204,332. Total expenditures, plus outstanding commitments and forecast, is $272,482 as shown in Attachment B1 – Budget Detail for P2496. The total budget for CIP R2094, as approved in the FY 2013 budget, is $3,100,000. Expenditures to date are $1,522,228. Total expenditures, plus outstanding commitments and forecast, is $1,679,428 as shown in Attachment B2 – Budget Detail for P2094. 3 Based on a review of the financial budgets, the Project Manager anticipates that each budget is sufficient to support the Project. The Finance Department has determined that 100% of the funding is available from the Expansion Fund for CIP R2094 and that 100% of the funding is available from the Replacement Fund for CIP P2496. 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: The District’s General Council and the City’s City Attorney have reviewed and accepted the Agreement as to form and legality. DM:jf P:\WORKING\CIP P2496 Otay Lakes Rd Utility Relocations\Phase II\Staff Reports\BD 04-03-13\BD 04-03-2013, Staff Report, Otay Lakes Road Phase II Reimbursement Agreement, (DM-RP).docx Attachments: Attachment A – Committee Action Attachment B1 – P2496 Budget Detail Attachment B2 – R2094 Budget Detail Exhibit A – Location Map Exhibit B – Agreement ATTACHMENT A SUBJECT/PROJECT: R2094-006000 P2496-001103 Authorization to Execute a Reimbursement Agreement Between the City of Chula Vista and the Otay Water District for Phase II of the Otay Lakes Road 12-Inch Recycled Water Pipeline and Potable Utility Relocation Project COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on March 21, 2013. The Committee supported Staff’s recommendation. NOTE: The "Committee Action" is written in anticipation of the Committee moving the item forward for Board approval. This report will be sent to the Board as a Committee approved item, or modified to reflect any discussion or changes as directed from the Committee prior to presentation to the full Board. ATTACHMENT B1 – Budget Detail SUBJECT/PROJECT: R2094-006000 P2496-001103 Authorization to Execute a Reimbursement Agreement Between the City of Chula Vista and the Otay Water District for Phase II of the Otay Lakes Road 12-Inch Recycled Water Pipeline and Potable Utility Relocation Project Date Updated: - 3/1/2013 Budget 275,000 Planning Professional Legal Fees 229 229 - 229 GARCIA CALDERON & RUIZ LLP Regulatory Agency Fees 50 50 - 50 PETTY CASH CUSTODIAN Standard Salaries 2,198 2,198 - 2,198 Total Planning 2,476 2,476 - 2,476 Design 001102 Consultant Contracts 29,148 29,148 - 29,148 LEE & RO INC Standard Salaries 33,058 33,058 - 33,058 Total Design 62,206 62,206 - 62,206 Construction Construction Contracts 125 125 - 125 CLARKSON LAB & SUPPLY INC Consultant Contracts 890 890 - 890 CPM PARTNERS INC 200 200 - 200 LEE & RO INC OTHER AGENCY FEES 50,000 50,000 - 50,000 CITY OF CHULA VISTA Standard Salaries 88,436 88,436 - 88,436 OTHER AGENCY FEES 68,150 - 68,150 68,150 CITY OF CHULA VISTA Total Construction 207,801 139,651 68,150 207,801 Grand Total 272,482 204,332 68,150 272,482 Vendor/Comments Otay Water District P2496-Otay Lakes Road Utility Relocations Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost ATTACHMENT B2 – Budget Detail SUBJECT/PROJECT: R2094-006000 P2496-001103 Authorization to Execute a Reimbursement Agreement Between the City of Chula Vista and the Otay Water District for Phase II of the Otay Lakes Road 12-Inch Recycled Water Pipeline and Potable Utility Relocation Project Date Updated: - 3/1/2013 Budget 3,100,000 Planning Meals and Incidentals 22 22 0 22 PETTY CASH CUSTODIAN Professional Legal Fees 2,413 2,413 0 2,413 GARCIA CALDERON & RUIZ LLP 545 545 0 545 STUTZ ARTIANO SHINOFF Service Contracts 983 983 0 983 JONES & STOKES ASSOCIATESStandard Salaries 78,771 78,771 0 78,771 Total Planning 82,733 82,733 0 82,733Design001102 Consultant Contracts 30,035 30,035 0 30,035 SOUTHERN CALIFORNIA SOIL 72,204 72,204 0 72,204 LEE & RO INC3,850 3,850 0 3,850 MWH CONSTRUCTORS INCRegulatory Agency Fees 1,042 1,042 0 1,042 DEPARTMENT OF PUBLIC HEALTHStandard Salaries 27,379 27,379 0 27,379 Total Design 134,510 134,510 0 134,510ConstructionConsultant Contracts 16,554 16,554 0 16,554 LEE & RO INCStandard Salaries 62,606 54,606 8,000 62,606 Total Construction 79,160 71,159 8,000 79,159Tapestry & Mosaic 1,478 1,478 0 1,478 AEGIS ENGINEERING MANAGEMENT 20,171 20,171 0 20,171 AEGIS ENGINEERING MGMT INCFor Ops Only - Contracted Services 1,763 1,763 0 1,763 KIRK PAVING INC 200 200 0 200 PENHALL COMPANY 102 102 0 102 C W MCGRATH INC 300 300 0 300 CITY OF CHULA VISTAOTHER AGENCY FEES 1,751 1,751 0 1,751 DEPARTMENT OF PUBLIC HEALTHProfessional Legal Fees 40 40 0 40 STUTZ ARTIANO SHINOFFAgreements21,000 0 21,000 21,000 TAPESTRY & MOSAIC HOAStop Meter 24,041 24,041 0 24,041Total Tapestry & Mosaic 70,847 49,847 21,000 70,847 AspireConsultant Contracts 16,160 14,160 2,000 16,160 AEGIS ENGINEERING MGMT INC 375 375 0 375 PENHALL COMPANY3,340 3,340 0 3,340 KIRK PAVING INC1161160116C W MCGRATH INC4954950495CITY OF CHULA VISTAOTHER AGENCY FEES 265 265 0 265 DEPARTMENT OF PUBLIC HEALTHProfessional Legal Fees 81 81 0 81 STUTZ ARTIANO SHINOFFAgreements25,500 0 25,500 25,500 ASPIRE HOAUnion 3 Part 24,861 24,861 0 24,861Total Aspire 71,192 43,692 27,500 71,192 City of Chula Vista Consultant Contracts 144 144 0 144 CLARKSON LAB & SUPPLY INC4,950 4,950 0 4,950 VALLEY CONSTRUCTION MANAGEMENT2,488 2,488 0 2,488 AEGIS ENGINEERING MGMT INCOTHER AGENCY FEES 979,589 979,589 0 979,589 CITY OF CHULA VISTAOTHER AGENCY FEES 29,200 0 29,200 29,200 CITY OF CHULA VISTA Service Contracts 27 27 0 27 CARMEL BUSINESS SYSTEMS INCStandard Salaries 94,025 91,025 3,000 94,025Total City of Chula Vista 1,110,422 1,078,222 32,200 1,110,422Aristata 473 473 0 473 AEGIS ENGINEERING MANAGEMENT18,104 13,604 4,500 18,104 AEGIS ENGINEERING MGMT INCOTHER AGENCY FEES 2,268 2,268 0 2,268 DEPARTMENT OF PUBLIC HEALTHService Contracts 296 296 0 296 CARMEL BUSINESS SYSTEMS INCAgreements20,000 0 20,000 20,000 ARISTATA HOAStandard Salaries 7,473 6,473 1,000 7,473Total Aristata 48,614 23,113 25,500 48,613Agave & Saguaro Consultant Contracts 528 528 0 528 AEGIS ENGINEERING MANAGEMENTConsultant Contracts 20,046 18,016 2,000 20,016 AEGIS ENGINEERING MGMT INCOTHER AGENCY FEES 731 731 0 731 DEPARTMENT OF PUBLIC HEALTHService Contracts 296 296 0 296 CARMEL BUSINESS SYSTEMS INCAgreements40,000 0 40,000 40,000 AGAVE & SAGUARO HOAStandard Salaries 13,593 12,593 1,000 13,593Total Agave & Saguaro 75,193 32,164 43,000 75,164 PhaseStandard Salaries 3,353 3,353 0 3,353 3,342 3,342 0 3,342 AECOM USA INC 92 92 0 92Total Phase 6,787 6,787 0 6,787 Grand Total 1,679,458 1,522,228 157,200 1,679,428 Vendor/Comments Otay Water DistrictR2094-Potable Irrigation Meters to Recycled Water Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost Consultant Contracts Consultant Contracts INFRASTRUCTURE EQUIPMENT & MATERIALS For Ops Only - Contracted Services INFRASTRUCTURE EQUIPMENT & MATERIALS Consultant Contracts ! VICINITY MAP PROJECT SITE NTS ?ò Aä ?Ë ;&s DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ?p F P:\WORKING\CIP P2496 Otay Lakes Road Utility Relocations\Phase II\Staff Reports|Exhibit A OTAY WATER DISTRICTOTAY LAKES ROAD UTILITY RELOCATIONS - PHASE IILOCATION MAP EXHIBIT A CIP P2496F 0 0.1 0.20.05 Miles OTAY LAKES RD. PROJECT SITE O T A Y L A K E S R D TELEGRAPH CANYON RD. E A S T H S T . M I R A C O S T A C I R C L E EXHIBIT B REIMBURSEMENT AGREEMENT FOR PAYMENT OF COSTS OF RELOCATION AND ADJUSTMENT OF CERTAIN WATER FACILITIES BY AND BETWEEN THE OTAY WATER DISTRICT AND THE CITY OF CHULA VISTA, CALIFORNIA (OTAY LAKES ROAD WIDENING PROJECT, PHASE 2) THIS REIMBURSEMENT AGREEMENT FOR THE PAYMENT OF COSTS FOR RELOCATION AND ADJUSTMENT OF OTAY WATER DISTRICT FACILITIES, dated ____________________, 2013, is entered into by and between the Otay Water District (“District”) and the City of Chula Vista, a municipal corporation, (“City”) to establish terms and conditions pursuant to which City will bid and cause to be constructed certain District Facilities, defined herein below, and District will reimburse City for all expenses related thereto. District and City may be referred to herein individually as “Party” and collectively as the “Parties.” RECITALS WHEREAS, District has approved, within its Capital Improvement Program (“CIP”), the relocation and adjustment of certain existing, reclaimed and potable water facilities (“Existing District Facilities”) within the City of Chula Vista; and WHEREAS, District is authorized, pursuant to applicable laws, to contract and to pay for all or part of the cost of the installation, relocation, adjustment, and construction of any building, facility, structure or other improvements required by District in connection with a District service; and WHEREAS, City is constructing improvements to Otay Lakes Road between East H Street and Telegraph Canyon Road. These improvements include, but are not limited to, roadway widening, construction of curb, gutter, sidewalk, and median islands, construction of retaining walls, relocation of utilities, and reconfiguration of traffic signals and street lighting (“City Improvements”); and WHEREAS, the relocation and adjustment of District Facilities (“District Project”) concurrently with City Improvements would constitute a substantial benefit to District and the City, which benefits include, but are not limited to, reductions or savings in terms of time, money, construction hazards, and traffic impacts; and WHEREAS, in order to achieve such benefits, District desires that City incorporate the relocation and adjustment Existing District Facilities into the construction documents and contract for City Improvements; and WHEREAS, City is willing to incorporate the District Project into the contract for City Improvements, provided District submits complete plans and specifications for the District Project and agrees to reimburse City for all associated costs; and NOW, THEREFORE, in consideration of the mutual covenants herein contained, it is agreed by and between the Parties hereto, as follows: 2 ARTICLE I. DEFINITIONS 1.1 Definitions. Unless the context otherwise requires, the terms defined in this Section 1 shall, for all purposes of this Reimbursement Agreement and of any amendment hereto, and of any certificate, opinion, estimate or other document herein mentioned, have the meanings herein specified. “District” means the Otay Water District, a municipal water district duly organized and existing under the Municipal Water District Law of 1911, as set forth in the California Water Code. “City” means the City of Chula Vista, California, a chartered municipal corporation duly organized and existing under and by virtue of the Constitution and laws of the State of California. “City Improvements” means, collectively, the improvements to Otay Lakes Road between East H Street and Telegraph Canyon Road (Phase 2 of City CIP Project No. STM-355). “District Costs” means the total dollar amount of costs associated with the District Project, including, but not limited to, costs of materials, labor, oversight, bidding, permits, change orders, and the fair share of Joint Costs. “District Project” means the relocation and adjustment of District’s potable and recycled water facilities within Otay Lakes Road between East H Street and Telegraph Canyon Road and are fully funded in District’s CIP as “CIP P2496, Otay Lakes Road Utility Relocations” and “CIP R2094, Potable Irrigation Meters to Recycled Conversion.” “Existing District Facilities” means the following potable and recycled water facilities to be relocated or adjusted: “Joint Costs” means those costs of relocations and adjustment of the Project, which, due to their nature, cannot be attributed solely to District Project or City Improvements, yet 3 from which both derive benefit or those costs that both Parties would have incurred had their respective facilities been constructed independently of each other (e.g. slurry seal would have been necessary to cover the District’s trench and would also have been required for the City’s street). “Project” means, collectively, District Facilities and City Improvements. ARTICLE II. PRECONSTRUCTION 2.1 Design and Specifications - Generally. Prior to advertisement of a Request for Proposals (“RFP”) for the construction and installation of Project, District shall submit designs and all associated plans and specifications (collectively “Construction Documents”) for the District Project to the City. 2.1.1 Approval. Prior to submission, an authorized representative of District shall approve the Construction Documents, submittal of which shall indicate such approval and grant to the City permission to include the Construction Documents in the RFP. 2.1.2 Design and Preparation Costs. All costs associated with the design of a Party’s facilities and the preparation of Construction Documents shall be borne solely by such Party. 2.1.3 Bidding and Award –City shall be responsible for all aspects of bidding and award of a contract for the construction and installation of the Project (“Construction Agreement”). 2.1.3.1 Bid Package. City shall be responsible for preparing and circulating the bid package. 2.1.3.2 Meetings. City shall organize all pre-bid meetings and shall inform the District of the time and date of such meeting, so that a representative of the District may be present to clarify any issues related to and prepare addenda for the construction of the District Facilities. a. Additional Costs. Any additional costs associated with the failure of District to attend meetings, clarify issues, or submit addenda to City for distribution shall be the obligation of the District. 2.1.3.3 Selection of Lowest Responsible Bidder. City, at its sole discretion, shall determine the lowest responsible bidder, which determination shall be binding on the District. 2.1.3.4 Execution of Construction Agreement. City shall be responsible for executing the Construction Agreement on the behalf of itself and the District and ensure that the District is identified as a third-party beneficiary of such agreement with the same rights and remedies as the City. 4 ARTICLE III. CONSTRUCTION 3.1 Compliance with Specifications. City will include provisions in the Construction Contract that require that the relocations and adjustments associated with the District Project by City's contractor shall be in strict compliance with the approved plans and specifications provided by District, that all materials furnished by City’s contractor shall conform to District’s approved material list, and that any and all deviations from said plans and specifications must be approved by District, in writing, prior to being incorporated into the work. 3.1.1 Right to Enforce. District shall have the right to enforce the terms of Section 3.1 against the City’s contractor in the same manner as the City, and pursuant to Section 11.17 such rights shall be written into the Construction Contract. 3.2 Project Completion and Warranty. District and City anticipate that Project will be completed on or about December 31, 2013. Project, however, will not be deemed completed or accepted until both City and District have accepted their respective facilities or improvements. The City’s contractor shall warrant all work for a period of no less than one year from the date of acceptance, which shall be deemed to be the latter of the dates District and City accept their work performed and facilities constructed pursuant to the Construction Agreement. Acceptance will be evidenced by the filing of a Notice of Completion by the City with the County of San Diego Recorder. The Construction Contract shall include this definition of project completion and acceptance. ARTICLE IV. REIMBURSEMENT OF COSTS 4.1 Deposit Account. Within thirty (30) calendar days of the Construction Agreement award, District shall deposit with the City an amount equal to one hundred (100) percent of the bid amount attributable to the relocation and adjustment of District Facilities, plus a ten (10) percent contingency (“District Deposit”) for the purpose of reimbursing the City for progress payments made by City to City’s contractor associated with the District Project. 4.2 Invoice. City shall invoice the District for District Costs (“City Invoice”) following the receipt of an invoice from City’s contractor on which such District Costs appear. The City Invoice shall: 4.2.1 Include a copy of the contractor’s invoice. 4.2.2 Identify those costs attributable to the District’s Project. 4.2.3 Show calculations apportioning the District’s fair share of Joint Costs. 4.2.3.1 Apportionment of Joint Costs. Joint Costs may be apportioned as follows: a. When a percentage of use can be determined, Joint Costs shall be apportioned based on the respective percentages of use. 5 b. When work is equally necessary for both the installation and construction of City Improvements and the District Project, Joint Costs shall be divided equally. c. Based on the respective percentages of Total Project Costs. d. Other methods to which the Parties mutually agree. 4.2.4 Provide a net total charge payable by District. 4.3 District Approval. District shall review and approve the City Invoice within thirty (30) calendar days of its receipt (“Review Period”). If District determines that all relevant documents have not been submitted, District shall inform the City of the need for additional information and specify the documents/information necessary to permit review and approval. 4.3.1 Failure to Approve. If District fails to approve the City Invoice or request additional information within the Review Period, the charges on the City Invoice shall be deemed approved. 4.4 Reimbursement. Following District approval of a City Invoice, City shall deduct the invoice amount from the District Deposit for the purpose of reimbursing the City for District Costs invoiced by and paid to City’s contractor. District approval of a City Invoice shall be deemed District’s authorization for such reimbursement in the amount of the City Invoice. 4.4.1 Withholding/Retention. From each payment to the contractor, City shall withhold a minimum of five (5) percent of the amount of the contractor’s invoice. Payment thereof shall not be made until final approval and acceptance. A similar retention shall be withheld from the reimbursement to the City from District Deposit. 4.5 Use of Project Contingency. The Project Contingency may be used for unforeseen changes in work; however it shall not be used for: (i) work required due to contractor’s failure to perform work or services according to the terms of the Construction Agreement and/or in compliance with the Construction Documents; or (ii) uninsured losses resulting from the negligence of contractor. ARTICLE V. CHANGE ORDERS 5.1 Written Approval of Construction Changes and Change Orders. With the exception of Emergencies, prior to the approval of a construction change or change order concerning or affecting District Project, including any changes to City Improvements that might affect District Project in any way, City shall obtain the written consent of District. 5.1.1 Approval of Change Orders. District shall respond to a change order request within five (5) working days of the date it is received by District. 5.1.2 Additional Costs. District will bear any increased costs due to a delay in approving a properly submitted construction change and/or change order request. 6 5.2 Changes in Emergencies. City may authorize contractor to proceed with any proposed construction changes and or change orders, without consulting with District or obtaining the District’s written approval, if failure to act immediately would pose a danger to the public, as determined in the sole discretion of the City, or result in delays and cost overruns ( collectively “Emergency”); however, the City shall use best efforts to immediately, or as soon as reasonably possible, inform the district the changes. The District shall be responsible for any increased costs of construction of their portion of Project due to an Emergency. 5.3 Errors and Omissions. City shall not make payment to contractor or charge District for any costs or expenses of a Change Order resulting from an error or omission for which the contractor is solely responsible. ARTICLE VI. INSPECTION 6.1 Inspection Team. District shall appoint an individual or team responsible for inspections and approving installation of District Facilities. 6.2 Inspection Stages and Obligations. District shall have the right to conduct inspections of the District Project and construction methods pertaining thereto as deemed necessary by District. District shall provide copies of all District inspections to City within five (5) working days of an inspection. District shall be responsible for verifying that all work on District Project is completed in accordance with the approved plans and specifications. It is specifically understood that District’s inspectors shall have the authority to enforce District’s plans and specifications for District Project, which authority shall include the authority to require that any and all unacceptable materials, workmanship, and/or installation be replaced, repaired, or corrected by City’s contractor without cost to District and/or City. 6.3 Inspection Costs. All inspection costs incurred by District will be borne by District. 6.4 Notification. The Parties agree to develop mutually acceptable procedures for notification of inspections required or deemed necessary by either Party. ARTICLE VII. INSURANCE 7.1 Contractor’s Insurance. City shall ensure that its contractor provides evidence of insurance coverage, as required by City, for the entire construction and, if applicable, warranty period. Such insurance shall, at a minimum, include a comprehensive general liability policy in an amount sufficient to cover all contractual obligations of the contractor under the construction contract, and no less than $2,000,000. The policy of insurance shall name District and City, and their respective employees, officers, governing body members, and agents as additional insureds, require a waiver of subrogation, and be primary insurance. Furthermore, City shall obtain evidence that the contractor maintains worker’s compensation insurance in accordance with applicable requirements of law. 7.2 Parties’ Insurance. District and City shall maintain insurance as customary in connection with their respective facilities. 7 ARTICLE VIII. INDEMNITY 8.1 Indemnity. Each Party hereto agrees to defend, indemnify, protect, and hold harmless (“Indemnitor”) the other Party, its agents, officers, and employees (“Indemnitees”) from and against any and all claims asserted or liability established for damages or injuries to any property or person, including death or dismemberment, which arise from or are caused by the negligent acts or omissions or willful misconduct of the Indemnitor’s agents, officers or employees, in performing the work or services herein and all expenses of investigation and defending against same; provided, however, that each Party's duty to defend, indemnify and hold harmless the other shall not include any claims or liability arising from the sole negligence or willful misconduct of the other Indemnitee, its agents, officers or employees. District and City agree that in the event of any joint or concurrent negligence, they will apportion any established or agreed upon liability proportionate to their respective degree of fault. For the purposes of this provision, the City’s contractor shall not be considered an agent of the City or District. Claims related to the actions or omissions of the City’s contractor shall be address through provisions in the Construction Contract, which provisions shall include indemnity, defense, and hold harmless provisions from the City’s contractor in favor of both the City and District. 8.2. Enforcement Costs. Indemnitor agrees to pay any and all costs City incurs enforcing the indemnity and defense provisions set forth in Article V. 8.3. Survival. Indemnitor’s obligations under Article V shall survive the termination of this Agreement. ARTICLE IX. RECORDS 9.1 Retention of Records. City shall require contractor to maintain data and records related to this Construction Agreement for a period of not less than three (3) years following receipt of final payment. 9.2 Audit of Records. City shall make available and shall require that its contractor make available to District for examination at reasonable locations within the County of San Diego and at any time during normal business hours and as often as the District deems necessary, all of the data and records with respect to all matters covered by this Agreement and the Construction Agreement. City and contractor will permit the District to make audits of all invoices, materials, payrolls, records of personnel, and other data and media relating to all matters covered by this Agreement and the Construction Agreement. ARTICLE X. NOTICES 10.1 Writing. Any demand upon or notice required or permitted to be given by one Party to the other Party shall be in writing. 10.2 Effective Date. Except as otherwise provided by law, any demand upon or notice required or permitted to be given by one Party to the other Party shall be effective: (i) on personal delivery, (ii) on the second business day after mailing by certified or registered U.S. Mail, return receipt requested, (iii) on the succeeding business day after 8 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, or (iv) upon successful transmission of facsimile. 10.3 Recipients. All demands or notices required or permitted to be given shall be sent to all of the following: 10.3.1 District: Otay Water District 2554 Sweetwater Springs Boulevard Spring Valley, California 91978 Fax: 619-670-8920 Attention: District Project Manager 10.3.2 City: City of Chula Vista, Public Works – Engineering, 276 Fourth Avenue Chula Vista, California 91910 Fax: (619) 691-5171 Attention: City Project Manager and Director of Public Works. 10.4 Change of Address(es). Notice of change of address shall be given in the manner set forth in this Article. ARTICLE XI. MISCELLANEOUS 11.1 Headings. All article headings are for convenience only and shall not affect the interpretation of this Agreement. 11.2 Gender & Number. Whenever the context requires, the use herein of (i) the neuter gender includes the masculine and the feminine genders and (ii) the singular number includes the plural number. 11.3 Reference to Paragraphs. Each reference in this Agreement to a section refers, unless otherwise stated, to a section of this Agreement. 11.4 Incorporation of Recitals. All recitals herein are incorporated into this Agreement and are made a part hereof. 11.5 Covenants and Conditions. All provisions of this Agreement expressed as either covenants or conditions on the part of the City or the District, shall be deemed to be both covenants and conditions. 11.6 Integration. This Agreement and the Exhibits and references incorporated into this Agreement fully express all understandings of the Parties concerning the matters covered in this Agreement. No change, alteration, or modification of the terms or conditions of this Agreement, and no verbal understanding of the Parties, their officers, 9 agents, or employees shall be valid unless made in the form of a written change agreed to in writing by both Parties or an amendment to this Agreement agreed to by both Parties. All prior negotiations and agreements are merged into this Agreement. 11.7 Severability. The unenforceability, invalidity, or illegality of any provision of this Agreement shall not render any other provision of this Agreement unenforceable, invalid, or illegal. 11.8 Drafting Ambiguities. The Parties agree that they are aware that they have the right to be advised by counsel with respect to the negotiations, terms and conditions of this Agreement, and the decision of whether or not to seek advice of counsel with respect to this Agreement is a decision that is the sole responsibility of each Party. This Agreement shall not be construed in favor of or against either Party by reason of the extent to which each Party participated in the drafting of the Agreement. 11.9 Conflicts Between Terms. If an apparent conflict or inconsistency exists between the main body of this Agreement and the Exhibits, the main body of this Agreement shall control. If a conflict exists between an applicable federal, state, or local law, rule, regulation, order, or code and this Agreement, the law, rule, regulation, order, or code shall control. Varying degrees of stringency among the main body of this Agreement, the Exhibits, and laws, rules, regulations, orders, or codes are not deemed conflicts, and the most stringent requirement shall control. Each Party shall notify the other immediately upon the identification of any apparent conflict or inconsistency concerning this Agreement. 11.10 Prompt Performance. Time is of the essence of each covenant and condition set forth in this Agreement. 11.11Good Faith Performance. The parties shall cooperate with each other in good faith, and assist each other in the performance of the provisions of this Agreement. 11.12 Further Assurances. City and District each agrees to execute and deliver such additional documents as may be required to effectuate the purposes of this Agreement. 11.13 Exhibits. Each of the following Exhibits is attached hereto and incorporated herein by this reference: None. 11.14 Controlling Law. The laws of the State of California shall govern and control the terms and conditions of this Agreement. 11.15 Jurisdiction, Venue, and Attorney Fees. The venue for any suit or proceeding concerning this Agreement, the interpretation or application of any of its terms, or any related disputes shall be in the County of San Diego, State of California. The prevailing Party in any such suit or proceeding shall be entitled to a reasonable award of attorney fees in addition to any other award made in such suit or proceeding. 10 11.16 Agency/Municipal Powers. Nothing contained in this Agreement shall be construed as a limitation upon the powers of the District or the City as a chartered city of the State of California. 11.17 Third Party Relationships. Nothing in this Agreement shall create a contractual relationship between City or District and any third party; however, the City shall ensure that the District is an intended third party beneficiary of the Construction Agreement and shall share all of the rights and benefits of the City with respect to the contractor. 11.18 Limitation on District Remedies and Waiver of Claims. District understands that the sole purpose of this Agreement is to establish a method to reimburse the City for obligations of the District for payment of the costs of the installation and construction of District Facilities, which costs would otherwise be due directly to the City’s contractor. In accordance with such purpose, the District agrees that its sole remedy for construction defects, breach by City Contractor, damage to property or persons, including death, to district personnel or any third parties, or other claims arising out of or related to the work performed to install and/or construct District Facilities shall be against the City’s contractor or its subcontractors and agents, and, hereby, waives any and all claims it may hereafter have against the City, arising out of the same, except for those claims arising out of the sole negligence or sole willful misconduct of the City. District, hereby, expressly waives all claims against the City identified in Section 11.18: DISTRICT REPRESENTATIVE:________________________________. DATE:____________ 11.19 Non-Assignment. Except as relates to the Construction Agreement, the City shall not assign the obligations under this Agreement. 11.20 Successors in Interest. This Agreement and all rights and obligations created by this Agreement shall be in force and effect whether or not any Parties to the Agreement have been succeeded by another entity, and all rights and obligations created by this Agreement shall be vested and binding on any Party's successor in interest. 11.21 No Waiver. No failure of either the City or the District to insist upon the strict performance by the other of any covenant, term or condition of this Agreement, nor any failure to exercise any right or remedy consequent upon a breach of any covenant, term, or condition of this Agreement, shall constitute a waiver of any such breach of such covenant, term or condition. No waiver of any breach shall affect or alter this Agreement, and each and every covenant, condition, and term hereof shall continue in full force and effect to any existing or subsequent breach. 11.22 Administrative Claims Requirements and Procedures. No suit or arbitration shall be brought arising out of this agreement, against the City unless a claim has first been presented in writing and filed with the City and acted upon by the City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as 11 same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by the City in the implementation of same. Upon request by City, District shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 11.23 Dispute Resolution. If a dispute arises out of or relates to this Agreement, or the breach thereof, the Parties, following the procedures required by Section 11.22, agree to engage in good faith negotiations to attempt to resolve the dispute. In the event of any action at law or in equity, including an action for declaratory relief, between the Parties arising out of or relating to this Agreement, then the prevailing party in such action will be entitled to recover from the other party a reasonable sum as attorneys’ fees and costs. The prevailing party will be determined in accordance with Civil Code Section 1717(b)(1) or any successor statute. The prevailing party will also be entitled to its reasonable attorneys’ fees and costs in any post-judgment proceedings to collect or enforce the judgment. This provision is separate and will survive the merger of this Agreement into any judgment on this Agreement. 11.24 Administration of Contract. City hereby designates Kirk Ammerman, Principal Civil Engineer, as City Project Manager for the construction of Project and as the primary contact for all matters relating to this Agreement, including the submittal of City invoices for reimbursement. District hereby designates Ron Ripperger as District Project Manager for District Facilities and as the primary contact for all matters relating to this Agreement, including the processing, documenting, and approval of City invoices. 11.25 Signing Authority. The representative for each Party signing on behalf of such Party hereby declares that authority has been obtained to sign on behalf of the City and/or District, as applicable and agrees to hold the other Party or Parties hereto harmless if it is later determined that such authority does not exist. 12 IN WITNESS WHEREOF, City and District have executed this Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: City of Chula Vista Otay Water District, Dated: _________________________ By: ___________________________ By: ____________________ Cheryl Cox, Mayor Attest: ____________________________________ Donna Norris, City Clerk Approved as to form: Approved as to form: ____________________________________ ___________________________ Bart Miesfeld, City Attorney District Counsel Dated: ________________________ Dated:______________________ IN WITNESS HEREOF, City and District have executed this Reimbursement Agreement to be effective as of the day and year first above written. CITY OF CHULA VISTA OTAY WATER DISTRICT By: ________________________________ By: ___________________________ Cheryl Cox, Mayor Mark Watton, General Manager Attest: ________________________________ Donna Norris, City Clerk Approved as to form: _________________________________ City Attorney Approved as to form: _________________________________ Legal Counsel STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: April 3, 2013 PROJECT: DIV. NO. SUBMITTED BY: Geoffrey Stevens Chief, Information Technology and Strategic Planning APPROVED BY: German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: FY13 MID-YEAR STRATEGIC PLAN AND PERFORMANCE MEASURES REPORT GENERAL MANAGER’S RECOMMENDATION: No recommendation. This is an informational item only. COMMITTEE ACTION: See “Attachment A”. PURPOSE: To provide a fiscal mid-year report on the District’s Strategic Performance Plan for FY 2013. ANALYSIS: Overall, FY13 Quarter 2 results for Performance Measures continue to be positive with the District achieving its target of 90% for Strategic Plan Objectives and just below its target for Performance Measures (at 73% vs. target of 75%). Strategic Plan Objectives Strategic Plan Objectives are designed to ensure we are making the appropriate high-level changes necessary to move the District in the planned direction to meet new challenges and opportunities. Objective results are on target at 90% complete, ahead or on schedule. These results are slightly higher than the previous year. AGENDA ITEM 4 AGENDA ITEM 6 2 Two items are on hold and are thus excluded from the calculation, and four items have not started as they are planned to begin in FY 2014. FY13 Q2 Objectives Performance Measures Performance measures are designed to track the day-to-day performance of the District. These items measure the effectiveness and efficiency of daily operations. The overall goal is that at least 75% of these measures be rated “on target”. FY13 Quarter 2 District results are near target with 30 of 41 (73%) items achieving the desired level or better. FY13 Q2 Performance Measures 30 of 41 Performance Measures Are on Target (73%) Target is 75% 35 of 39 Objectives On or Ahead of Schedule (90%) Target is 90% 3 Benchmarks – Peer Comparisons The District participates in the AWWA QualServe Benchmarking Study and has selected a subset of measures that help us measure how our performance compares to other water industry organizations. Overall, the District is above target on 13 of 16 items (81%). While we do not have a specific combined target for benchmarks, we do consider 81% a good indication of quality performance compared to our peers. FY13 Q2 Benchmark Performance Department Specific Results The following FY13 Quarter 2 charts provide an overview of Department performance. Staff will focus on presentations for Engineering and Operations at the EO&WR Committee meeting and with Finance, Administrative Services, and IT at the FA&C Committee meeting. 4 5 Next Steps Staff is currently evaluating changes to the FY14 Strategic Plan in advance of presentation of the FY14 budget to the Board. In addition, as the new FY15-17 will be presented to the Board this time next year, staff will begin the necessary preparation in September of this year to allow an opportunity to consider the next set of critical issues and decisions the District will face in the next three to four years. Strategic Plan on the Board Extranet All of the current and past strategic plan results and associated details are provided in a real time, interactive web-based application available to the Board on the Board Extranet. FISCAL IMPACT: Joe Beachem, Chief Financial Officer Informational item only, no fiscal impact. STRATEGIC GOAL: Strategic Plan and Performance Measure reporting is a critical component in providing performance reporting to the Board and staff. LEGAL IMPACT: None. Attachments: Attachment A – Committee Action Report Attachment B – PowerPoint Presentation ATTACHMENT A SUBJECT/PROJECT: FY13 MID-YEAR STRATEGIC PLAN AND PERFORMANCE MEASURES REPORT COMMITTEE ACTION: The Finance, Administration and Communications Committee and the Engineering, Operations and Water Resources Committee met on March 20, 2013, to review this item. Based upon this discussion, the Committees recommend that the Board receive that attached information. 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. FY 2013 – Mid Year Report (Halfway There!) ATTACHMENT B FY2013 Objectives – 2nd Quarter 25 of 29 objectives complete, ahead or on target (86%) Target is 90% FY2013 2nd Quarter Performance Measures 30 of 41 performance measures complete, ahead or on target (73%) Target is 75% Measured Once per Year at Year End Measure 1.2.101, Blanket Order Activity, aims to be above all set targets in order to have no less than 15% of material purchases acquired via blanket POs per quarter in a single year. Blanket Order Activity 1.2.101 Pe r c e n t a g e Total Customer Water Saved 1.3.102 Measure 1.3.102, Total Water Saved, aims to be above all set targets in order to save more than 100 acre feet of water in a single year. Ac r e F e e t Measure 1.1.100, Customer Satisfaction, is a once yearly survey that is reported on annually in the third quarter and represents the results for the given fiscal year. Customer Satisfaction 1.1.100 Measured Once per Fiscal Year Pe r c e n t a g e Measure 1.3.103, Otay Water Use, aims to be below 172 Gallons Per Day. Gallons Per Capita per Day 1.3.103 Ac r e F e e t Health & Safety Severity Rate (QualServe) 1.4.104 Measure 1.4.104, H & S Severity Rate, aims to be below all set targets in order to have no more than 30% severity rate per quarter in a single year. Pe r c e n t a g e Measure 1.4.105, Turnover Rate, aims to be below all set targets in order to have less than 5% turnover in a single year. Pe r c e n t a g e Employee Turnover Rate 1.4.105 Measure 1.4.106, Training Hours per Employee, aims to be above all set targets in order to have more than 12 hours of training per employee in a single year. Training Hours per Employee 1.4.106 Ho u r s Measure 2.2.200, CIP Project Expenditure vs. Budget, aims to be below all set targets in order to keep expenditures below 100% of the budgeted amount for a single year. Note: Annual result aims to be between 95-100% but is not to exceed 100%. Being significantly below target also gives the measure a “not on target” status. CIP Project Expenditure vs. Budget 2.2.200 Pe r c e n t a g e Measure 1.4.107, Safety Training Program, aims to be above all set targets in order to have no less than 8 hours of training per field employee per quarter in a single year. Safety Training Program 1.4.107 Ho u r s Measure 2.2.201, Construction Change Order Incidence, aims to be below all set targets in order to have no more than 2 % in one year. % rate of change orders in a single year. Construction Change Order Incidence (without allowances) 2.2.201 Pe r c e n t a g e Measure 2.3.202, Mark Out Accuracy, aims to have no less than 100% mark out accuracy every quarter in a single year. Mark Out Accuracy 2.3.202 Pe r c e n t a g e Measure 2.3.203, Project Closeout Time, aims to be below all set targets in order to have an average closeout time of no more than 45 days per quarter in a single year. Note: No projects closed out in the 1st, quarter. Project Closeout Time 2.3.203 Da y s Answer Rate 3.1.300 Measure 3.1.300, Answer Rate, aims to be above all set targets in order to have an average answer rate of no less than 97% . Pe r c e n t a g e Measure 3.2.301, O & M Cost per Account, aims to be below all set targets in order to keep O & M cost per account less than $510.40 in a single year. O & M Cost per Account (QualServe) 3.2.301 Do l l a r s Measure 3.2.302, Billing Accuracy, aims to be above all set targets in order to have no less than 99.8% billing accuracy per quarter in a single year. Billing Accuracy (QualServe) 3.2.302 Pe r c e n t a g e Measure 3.2.303, Overtime Percentage, aims to be below all set targets in order to keep expenditures below the budgeted amount for a single year. Overtime Percentage 3.2.303 Pe r c e n t a g e Measure 3.2.304, Sewer Rate Ranking, is a once yearly survey that is reported on annually in the first quarter and represents the results for the given fiscal year. The District’s goal was to be in the top 50. Sewer Rate Ranking 3.2.304 Measured Once per Fiscal Year Pe r c e n t a g e Measure 3.2.305, Water Rate Ranking, is a once yearly survey that is reported on annually in the first quarter and represents the results for the given fiscal year. The District’s goal was to be in the top 50. Water Rate Ranking 3.2.305 Measured Once per Fiscal Year Pe r c e n t a g e Measure 3.2.306, Debt Coverage Ratio, aims to be above all set targets in order to have sufficient debt coverage. *The calculation is a year-to-date calculation, so Qtr Result = YTD Result. Debt Coverage Ratio (QualServe) – YTD 3.2.306 Pe r c e n t a g e Annual Measure Calculated in 4th Quarter Reserve Level 3.2.307 Measure 3.2.307, Reserve Level, aims to be no less than 100%. It is measured annually. Pe r c e n t a g e In Development Annual Measure Calculated in 4th Quarter Measure 3.3.309, Distribution System Loss, aims to be below all set targets in order to ensure less than 4.5% of unaccounted water in a single year. *The calculation is a year-to-date calculation, so Qtr Result = YTD Result. Distribution System Loss (QualServe) 3.3.308 Pe r c e n t a g e Customer Satisfaction with Website 4.1.400 Measure 4.1.400, Customer Satisfaction with Website, is a once yearly survey that is reported on annually in the second quarter and represents the results for the given fiscal year. Measured Once per Fiscal Year Pe r c e n t a g e Measure 4.3.401, Network Availability, aims to be above all set targets in order to have an average of no less than 99.2% network availability per quarter in a single year. Network Availability 4.3.401 Pe r c e n t a g e Website Hits 4.4.402 Measure 4.4.402, Website Hits, aims to be above all set targets in order to have an average of no less than 12,100 website hits per quarter in a single year. Nu m b e r o f H i t s Measure 5.1.500, Unplanned Disruptions, aims to be below all set targets in order to have no more than .7 disruptions per 1000 accounts in a single year. Note: Target is expressed as number of disruptions per 1000 accounts Unplanned Disruptions (QualServe) 5.1.500 Di s r u p t i o n s p e r 1 0 0 0 A c c o u n t s Measure 5.1.501, Technical Quality Complaint, aims to be below all set targets in order to have no more than 9 complaints per 1000 customer accounts in a single year. Technical Quality Complaint (QualServe) 5.1.501 Co m p l a i n t s p e r 1 0 0 0 A c c o u n t s Measure 5.2.502, Planned Drinking Water Maintenance Ratio in $, aims to be above all set targets in order to have no less than 66% of all labor dollars spent on preventative maintenance per quarter in a single year. Note: Quarterly results are subject to change. Planned Potable Water Maintenance Ratio in $ (QualServe) 5.2.502 Pe r c e n t a g e Measure 5.2.503, Planned Recycled Water Maintenance Ratio in $, aims to be above all set targets in order to have no less than 70% of all labor dollars spent on preventative maintenance per quarter in a single year. Note: Quarterly results are subject to change. Planned Recycled Water Maintenance Ratio in $ 5.2.503 Pe r c e n t a g e Measure 5.2.504, Planned Wastewater Maintenance Ratio in $, aims to be above all set targets in order to have no less than 77% of all labor dollars spent on preventative maintenance per quarter in a single year. Note: Quarterly results are subject to change. Planned Wastewater Maintenance Ratio in $ (QualServe) 5.2.504 Pe r c e n t a g e Measure 5.2.505, Direct Cost of Treatment per MGD, aims to be below all set targets in order to have no more than $1000 per MG spent on wastewater treatment per quarter in a single year. Direct Cost of Treatment per MGD (QualServe) 5.2.505 Do l l a r s Measure 5.2.506, O & M Cost per MGP - wastewater, aims to be below all set targets in order to have no more than $1750 per MG spent on O & M for wastewater treatment per quarter in a single year. O & M Cost per MGP - wastewater (QualServe) 5.2.506 Do l l a r s Measure 5.3.507, % PMs Completed – Fleet Shop, aims to be above all set targets in order to have no less than 90% of the scheduled PMs completed per quarter in a single year. % PMs Completed – Fleet Shop 5.3.507 Pe r c e n t a g e Measure 5.3.508, % PMs Completed – Reclamation Plant, aims to be above all set targets in order to have no less than 90% of the scheduled PMs completed per quarter in a single year. % PMs Completed – Reclamation Plant 5.3.508 Pe r c e n t a g e Measure 5.3.509, % PMs Completed – Pump/Electric Section, aims to be above all set targets in order to have no less than 90% of the scheduled PMs completed per quarter in a single year. % PMs Completed – Pump/Electric Section 5.3.509 Pe r c e n t a g e Measure 5.3.510, % PMs Completed – Valve Maintenance Program, aims to be above all set targets in order to have no less than 90% of the scheduled PMs completed per quarter in a single year. % PMs Completed – Valve Maintenance Program 5.3.510 Pe r c e n t a g e Measure 5.3.511,Valve Exercising Program, aims to be above all set targets in order to have no less than 2400 valves exercised in a single year. Valve Exercising Program 5.3.511 Nu m b e r o f V a l v e s Measure 5.3.512, Water Distribution System Integrity, aims to be below all set targets in order to have no more than 16 leaks and breaks per 100 miles of distribution piping in a single year. Water Distribution System Integrity (QualServe) 5.3.512 Le a k s o r B r e a k s p e r 1 0 0 M i l e s Measure 5.3.513, Planned Water Service Disruption Rate, aims to be below all set targets in order to have no more than 2.5 planned outages per 1000 accounts per quarter in a single year. Note: This measure is expressed as number of accounts affected per 1000 accounts. Planned Water Service Disruption Rate (QualServe) 5.3.513 Di s r u p t i o n s p e r 1 0 0 0 A c c o u n t s Measure 5.3.514, Drinking Water Compliance Rate, aims to be no less than 100% every quarter in order to ensure the District meets all of the health related drinking water standards everyday for a single year. Potable Water Compliance Rate (QualServe) 5.3.514 Pe r c e n t a g e Measure 5.3.515, Collection System Integrity, aims to be below all set targets in order to have no more than 3.5 wastewater collection system failures per 100 miles of collection system pipeline in a single year. Collection System Integrity (QualServe) 5.3.515 Fa i l u r e s p e r 1 0 0 M i l e s Measure 5.3.516, Replace Manual Read Meters with Automated Meters, aims to be above all set targets in order to have no less than 4500 meters replaced in a single year. Replace Manual Read Meters with Automated Meters 5.3.516 Nu m b e r o f M e t e r s Measure 5.3.518, Sewer Overflow Rate, aims to have no overflows in a single year. Sewer Overflow Rate (QualServe) 5.3.518 Ov e r f l o w s p e r 1 0 0 M i l e s No Spills Please ! Measure 5.3.517, Recycled Water System Integrity, aims to be below all set targets in order to have no more than 6.6 leaks or breaks per 100 miles of recycled distribution system in a single year. Recycled Water System Integrity 5.3.517 Le a k s o r B r e a k s p e r 1 0 0 M i l e s Board Update of FY 2014 Modifications FY 2015 – 2017 Strategic Plan