Loading...
HomeMy WebLinkAbout10-23-13 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 WEDNESDAY October 23, 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. 4223 FIXING TERMS AND CONDITIONS FOR THE AN- NEXATION OF CERTAIN REAL PROPERTY OWNED BY ST. GREGORY OF NYSSA GREEK ORTHODOX CHURCH, APNs: 498-320-04-00 AND 498-320-45-00, TO THE OTAY WATER DISTRICT’S IMPROVEMENT DISTRICT NO. 18 (MARTIN) [5 minutes] 4. APPROVE A PROFESSIONAL ENGINEERING SERVICES CONTRACT WITH HDR ENGINEERING, INC. FOR CORROSION ENGINEERING SERVICES IN SUPPORT OF THE DISTRICT’S CATHODIC PROTECTION PROGRAM IN AN AMOUNT NOT- TO-EXCEED $684,750 (MARCHIORO) [5 minutes] 5. APPROVE A CONSTRUCTION CONTRACT WITH LAYFIELD ENVIRONMENTAL SYSTEMS CORPORATION FOR THE 927-1 RECYCLED WATER RESERVOIR FLOATING COVER AND LINER REPLACEMENT IN AN AMOUNT NOT-TO-EXCEED $873,400 (MARCHIORO) [5 minutes] 6. APPROVE A SECOND AGREEMENT AND THREE AMENDMENTS TO EXISTING CONTRACTS BETWEEN THE OTAY WATER DISTRICT AND HELIX WATER DIS- TRICT FOR EMERGENCY INTERCONNECTIONS (MARCHIORO) [5 minutes] 2 7. APPROVE THE WATER SUPPLY ASSESSMENT AND VERIFICATION REPORT DATED SEPTEMBER 2013 FOR THE OTAY RANCH VILLAGE 2 SPA AMENDMENT (COBURN-BOYD/KENNEDY) [10 minutes] 8. APPROVE THE WATER SUPPLY ASSESSMENT AND VERIFICATION REPORT DATED SEPTEMBER 2013 FOR THE OTAY RANCH UNIVERSITY VILLAGES PRO- JECT (3 NORTH AND A PORTION OF 4, 8 EAST, AND 10) (COBURN- BOYD/KENNEDY) [10 minutes] 9. FIRST QUARTER OF FISCAL YEAR 2014 CAPITAL IMPROVEMENT PROGRAM REPORT (MARTIN) [5 minutes] 10. SAN DIEGO COUNTY WATER AUTHORITY UPDATE (WATTON) [10 minutes] 11. 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 October 18, 2013 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 October 18, 2013. /s/ Susan Cruz, District Secretary STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: November 6, 2013 SUBMITTED BY: Dan Martin Engineering Manager FILE NO: 0210- 20.307 DIV. NO. 5 APPROVED BY: Rod Posada, Chief, Engineering German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: St. Gregory of Nyssa Greek Orthodox Church Sewer Annexation to Improvement District No. 18 (APNs 498-320-04-00 and 498-320-45-00) GENERAL MANAGER’S RECOMMENDATION: Adopt Resolution No. 4223 approving the annexation of the property owned by St. Gregory of Nyssa Greek Orthodox Church to Improvement District (ID) No. 18 (see Exhibit A for Location Map). COMMITTEE ACTION: Please see Attachment A. PURPOSE: The proposed annexation is to provide sewer service to parcels located at 1454 Jamacha Road, in an unincorporated area of the County of San Diego (APNs 498-320-04-00 and 498-320-45-00). ANALYSIS: A written request and Petition signed by St. Gregory of Nyssa Greek Orthodox Church, c/o Mr. Charles George, has been received for annexation of APNs 498-320-04-00 and 498-320-45-00, located at 1454 Jamacha Road, in an unincorporated area of the County of San Diego, for sewer service. The total acreage to be annexed is 1.739 acres. The property is within the jurisdictional boundary of the Otay Water District and following the Board’s approval, it will become part of ID No. 18. The parcels are fronted by the District’s sewer main that exists within the Rancho San Diego Basin. Sewer laterals exist to 2 serve the parcels, but have not been connected to date, since the properties have been served by private septic systems. As part of the Church’s construction under permit with the County of San Diego, the County has required that the properties be tied into the District’s sewer system. These parcels are part of the District’s Wastewater Master Plan. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The property owners will pay the District’s annexation processing fee of $751.88, sewer annexation fees in effect at the time the sewer service is provided (current fee is $5,743.84 per EDU), any additional fees including the $30 per year availability fee as established in the attached Resolution. STRATEGIC GOAL: Provide enhanced sewer service to meet customer needs. LEGAL IMPACT: No legal impact. DM/RP:tc Y:\Board\CurBdPkg\ENGRPLAN\2014\BD 11-06-13\St Gregory of Nyssa Greek Orthodox Church Sewer Annexation\Staff Report, Sewer Annexation ID 18- St Gregory of Nyssa Greek Orthodox Church.doc Atttachments: Attachment A - Committee Action Attachment B - Resolution No. 4223 Exhibit A – Location Map ATTACHMENT A SUBJECT/PROJECT: 0210-20.307 St. Gregory of Nyssa Greek Orthodox Church Sewer Annexation to Improvement District No. 18 (APNs 498- 320-04-00 and 498-320-45-00) COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on October 23, 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. Page 1 of 4 RESOLUTION NO. 4223 A RESOLUTION OF THE BOARD OF DIRECTORS OF OTAY WATER DISTRICT APPROVING THE ANNEXATION OF THOSE LANDS DESCRIBED AS "ST. GREGORY OF NYSSA GREEK ORTHODOX CHURCH SEWER ANNEXATION” TO IMPROVEMENT DISTRICT NO. 18 (APNS: 498-320-04-00 AND 498-320-45-00) WHEREAS, a letter has been submitted by ST. GREGORY OF NYSSA GREEK ORTHODOX CHURCH, C/O CHARLES GEORGE, 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 No. 18 pursuant to California Water Code Section 72670 et seq.; and WHEREAS, pursuant to Section 72680.1 of said Water Code, the Board of Directors may proceed and act thereon without notice and hearing. NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT FINDS, RESOLVES, ORDERS AND DETERMINES as follows: 1. A depiction of the area proposed to be annexed, and the boundaries of ID 18 following the annexation, is set forth on a map in Exhibit “B” filed with the Secretary of the District, which map shall govern for all details as to the area proposed to be annexed. 2. The purpose of the proposed annexation is to make sewer service available to the area to be annexed, which availability constitutes a benefit to said area. 3. The Board finds and determines that the area proposed to be annexed to ID 18 will be benefited by such annexation and that the property currently within ID 18 will also be benefited and not injured by such annexation because after the annexation a Page 2 of 4 larger tax base will be available to finance the water facilities and improvements of ID 18. 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 $350; (3) The current sewer annexation cost is $5,743.84 per EDU; however, this fee changes quarterly subject to the Engineering-News Record (ENR) and will be determined at the time of connection to the District’s system; (4) Yearly assessment fees will be collected through the County Tax Assessor’s office in the amount of $30 for APNs 498-320-04-00 and 498-320-45-00; (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 Page 3 of 4 (6) Payment by the owners of APNs 498-320-04-00 and 498-320-45-00 of all other applicable local or state agency fees or charges. (b) The property to be annexed shall be subject to taxation after annexation thereof for the 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 ID 18 upon passage of this resolution. 6. The Board of Directors further finds and determines that there are no exchanges of property tax revenues to be made pursuant to California Revenue and Taxation Code Section 95 et seq., as a result of such annexation. 7. The annexation of APNs 498-320-04-00 and 498-320-45-00 to the District’s Improvement District 18 is hereby designated as the “ST. GREGORY OF NYSSA GREEK ORTHODOX CHURCH SEWER ANNEXATION”. 8. Pursuant to Section 57202(a) of the Government Code, the effective date of the ST. GREGORY OF NYSSA GREEK ORTHODOX CHURCH SEWER ANNEXATION shall be the date this Resolution is adopted by the Board of Directors of the Otay Water District. Page 4 of 4 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. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting held this 6th day of November, 2013. President ATTEST: __________________________________ District Secretary ROW ROW 4983303900 ROW 5172003500 ROW ROW 5173042300 5172103500 5172003400 4 98 32 0 31 00 4983303800 4983204500 4983204300 4983204600 5172103400 5 1 7 1 0 2 0 7 0 0 4983202000 4983302100 5171013100 4983201500 5171025000 4983202800 5171800800 4 9 8 3 2 0 4 2 0 0 5171021300 4983200400 5171013200 5171800700 4983302200 5172003600 5171801000 5171010300 5171010500 5171010600 5171010700 5171010800 5171010900 5171011000 5171010400 OTAY WATER DISTRICTSt. Gregory of Nyssa Greek Orthodox Church Sewer Annexation LOCATION MAP EXHIBIT A 0210-20.307 0 350175 FeetF CHASE AVE JAMACHA RD. HIDDEN MESA DR. PARCELS TOBE ANNEXED498-320-04-00498-320-45-00 !\ VICINITY MAP PROJECT SITE NTS ;&s DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ?ò Aä ?Ë ;&s ?p F STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: November 6, 2013 SUBMITTED BY: Jeff Marchioro Senior Civil Engineer Bob Kennedy Engineering Manager PROJECT: P1043- 008000 DIV. NO. ALL APPROVED BY: Rod Posada, Chief, Engineering German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Award of a Professional Engineering Services Contract to HDR Engineering, Inc. for Corrosion Engineering Services in support of the District’s Cathodic Protection Program GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) award a professional services contract to HDR Engineering, Inc. (HDR) and authorize the General Manager to execute an agreement with HDR for corrosion engineering services in support of the District’s Cathodic Protection Program for Fiscal Years 2014, 2015, and 2016 (ending December 31, 2015) in an amount not-to-exceed $684,750. COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to enter into a professional engineering services contract with HDR for corrosion engineering services in support of the District’s Cathodic Protection Program for Fiscal Years 2014, 2015, and 2016 (ending December 31, 2015) in an amount not-to-exceed $684,750. 2 ANALYSIS: The District’s Cathodic Protection Program (Program) was implemented more than a decade ago to provide the long-term benefit of preserving the life expectancy of steel pipeline and reservoir facilities by preventing corrosion and reducing the risk of costly failures. The Program includes the selection of appropriate corrosion resistant materials, the use of coatings and linings to prevent corrosion, and cathodic protection. The Cathodic Protection Program also ensures that all facilities are consistently designed, specified, constructed, and tested in accordance with the District’s corrosion control standards. The District has regularly awarded two-year duration professional services contracts in support of the District’s Cathodic Protection Program. V&A Consulting Engineers (V&A) held the most recent contract from June 11, 2011 to September 30, 2013. Schiff & Associates (Schiff), which was acquired by HDR Engineering, Inc. (HDR) in 2011, held the previous contract from November 2009 to June 2011. Previous contracts were also held by DeC Consulting Inc. which was acquired by V&A in 2007. The general scope of work for the new contract includes the following items:  Annual maintenance and improvements to the District’s Corrosion Control Program Annual Report.  Annual testing of 88 existing steel pipeline cathodic protection systems.  Annual testing and inspection of 29 existing steel reservoir cathodic protection systems.  Reservoir in-service inspections including interior underwater dive inspections, interior above-water raft inspections, and exterior inspections.  Reservoir coating construction project inspection.  As-Needed Corrosion Engineering Services. The new contract will also include As-Needed Corrosion Engineering services to provide the District with the ability to obtain consulting services in a timely and efficient manner and on an as- needed basis. The District will issue task orders to the consultant for specific projects during the contract period. The consultant will prepare a detailed Scope of Work, schedule, and cost estimate for each task order assigned under the contract. Upon written task order authorization from the District, the consultant shall then proceed with the project as described in the Scope of Work. 3 The anticipated CIP projects that are estimated to require corrosion engineering design services for the duration of this contract are listed below: CIP DESCRIPTION ESTIMATED COST P2507 East Palomar Street Utility Relocation $10,000 P2508 Pipeline Cathodic Protection Replacement Program $125,000 P2513 12-Inch Potable Water Pipeline East Orange Avenue Bridge, I-805 Crossing $10,000 P2529 711-2 Reservoir Interior & Exterior Coating $5,000 P2530 711-1 Reservoir Interior & Exterior Coating $5,000 P2531 944-1 Reservoir Interior & Exterior Coating $5,000 P2532 944-2 Reservoir Interior & Exterior Coating $5,000 P2541 624 Pressure Zone PRSs $5,000 P2542 850-3 Reservoir Interior Coating $5,000 R2091 927-1 (944-1R) Pump Station Upgrade and System Enhancements $5,000 TOTAL: $180,000 The corrosion engineering design scopes of work for the above projects are estimated from preliminary information and past projects. Therefore, staff believes that a $200,000 cap on the As- Needed Engineering Design Services contract is adequate, while still providing additional capacity for unforeseen support needs by the District. The As-Needed Engineering Design Services portion of this contract does not commit the District to any expenditure until a task order is approved to perform work on a CIP project. The District does not guarantee work to the consultant, nor does the District guarantee that it will expend all of the funds authorized by the contract on professional services. In accordance with the Board of Directors Policy Number 21, the District initiated the consultant selection process on August 2, 2013, by placing an advertisement in the San Diego Daily Transcript, and posting the Project on the District’s website for Professional Engineering Services. The advertisements attracted Letters of Interest and Statements of Qualifications from eight (8) consulting firms. A Pre-Proposal Meeting was held on August 20, 2013. Ten (10) people representing six (6) prime consulting firms attended the meeting. On August 30, 2013, proposals were received from the following four (4) consulting firms: 4 1. Corrpro Companies 2. HDR Engineering 3. JDH Corrosion Consultants 4. V&A Consulting Engineers Among the potential engineering firms that submitted letters of interest but did not propose were Lockwood, Andrews & Newnam (LAN), Russell Corrosion Consultants, Universal Technical Resource Services, and R.F. Yeager. After the proposals were evaluated and ranked by a five-member review panel consisting of District Engineering, Operations and I.T. staff, it was determined that all proposals ranked sufficiently close to warrant being invited to make an oral presentation and respond to questions from the panel. After conducting the interviews on September 26, 2013, the panel completed the consultant ranking process and concluded that HDR had the best approach to the Project and provided the best overall value to the District. Staff contacted references for the two firms with the highest scores (HDR and Corrpro Companies). HDR’s references were excellent. A summary of the complete evaluations is shown in Exhibit A. Scope and fee negotiations with HDR concluded on September 26, 2013 and resulted in a fee decrease of $165,505 to their original proposed fee of $850,255. HDR’s revised proposed fee was $684,750. Staff reviewed each of HDR’s scope and fee adjustments and concluded that each modification was fair and insignificant to the outcome of the selection process. As mentioned above, Schiff, which was acquired by HDR Engineering, Inc. in 2011, has successfully held this contract in the past. HDR has proposed the same core Schiff team with Graham Bell, Ph.D., P.E., and Steven Fox, P.E., in the Principal-In-Charge and Project Manager roles, respectively. Over the years, District staff has noticed the high quality and clarity of design deliverables consistently completed by Graham Bell and Steven Fox. Staff has appreciated the Schiff team’s past achievements in improving and modernizing the District’s Corrosion Control Program and associated data management using GIS. FISCAL IMPACT: Joe Beachem, Chief Financial Officer This contract is for professional services based on the District’s need and schedule, and expenditures will not be made until individual main tasks or task orders under the as-needed portion of this contract are authorized by District Staff. 5 Approximately $300,000 of this contract will be funded by P1043 operating budget over FY 2014, FY 2015, and FY 2016. The remaining $385,000 will be funded by specific CIP budgets comprised of $200,000 as-needed budget as detailed above and approximately $185,000 for reservoir coating construction project inspection. The Project Manager anticipates that the FY 2014 budget is sufficient to support the professional services planned for the remainder this fiscal year. The Project Manager also anticipates that FY 2015, FY2016 budgets, if approved, will be sufficient to support the future professional services required. Finance has determined that, with approval of the future budgets, funding will be available from the General, Expansion, Betterment, and Replacement funds, as outlined in the individual CIP project budgets described above. 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: None. JM/BK:jf P:\WORKING\CIP P1043 (Cathodic)\Sub 008000\Staff Report\BD-11-06-13, Staff Report, Award Engineering Contract to HDR, (JM-BK).docx Attachments: Attachment A – Committee Action Exhibit A – Summary of Proposal Rankings ATTACHMENT A SUBJECT/PROJECT: P1043-008000 Award of a Professional Engineering Services Contract to HDR Engineering, Inc. for Corrosion Engineering Services in support of the District’s Cathodic Protection Program COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on October 23, 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. Qualifications of Team Responsiveness and Project Understanding Technical and Management Approach INDIVIDUAL SUBTOTAL - WRITTEN AVERAGE SUBTOTAL - WRITTEN Proposed Fee* Consultant's Commitment to DBE TOTAL - WRITTEN Additional Creativity and Insight Strength of Project Manager Presentation and Communication Skills Responses to Questions INDIVIDUAL TOTAL - ORAL AVERAGE TOTAL ORAL TOTAL SCORE 30 25 30 85 85 15 Y/N Y/N 15 15 10 10 50 50 150 Poor/Good/ Excellent Bob Kennedy 25 21 24 70 10 12 7 7 36 Kevin Schmidt 27 20 22 69 10 11 8 8 37 Kevin Cameron 25 21 24 70 12 12 7 7 38 Ming Zhao 25 23 23 71 14 12 8 8 42 Jose Martinez 25 21 26 72 13 12 7 7 39 Bob Kennedy 27 23 26 76 13 14 9 9 45 Kevin Schmidt 28 24 28 80 12 13 9 9 43 Kevin Cameron 29 25 28 82 14 15 9 9 47 Ming Zhao 30 24 28 82 14 15 10 9 48 Jose Martinez 28 22 27 77 14 14 8 9 45 Bob Kennedy 24 20 23 67 11 13 8 8 40 Kevin Schmidt 27 18 20 65 13 13 8 7 41 Kevin Cameron 24 21 23 68 14 14 9 8 45 Ming Zhao 20 20 23 63 13 12 10 8 43 Jose Martinez 25 19 26 70 13 14 9 7 43 Bob Kennedy 25 21 24 70 10 10 7 7 34 Kevin Schmidt 27 18 24 69 10 8 5 5 28 Kevin Cameron 25 23 23 71 10 10 5 5 30 Ming Zhao 25 20 24 69 10 8 5 5 28 Jose Martinez 27 23 27 77 11 11 6 6 34 Firm Corrpro HDR/Schiff JDH V&A *Note: Review Panel does not see or consider proposed fee when scoring other categories. The proposed fee is scored by the PM, who is not on Review Panel. Fee $553,445 $850,255 $659,260 $698,880 Score 15 1 10 8 MAXIMUM POINTS 15Corrpro RATES SCORING CHART 85 79 YJDH 80 Y 38 126Y 67 Y 123 71 110 EXHIBIT A Summary of Proposal Rankings for Corrosion Engineering Services WRITTEN ORAL 8 70 V&A HDR/Schiff 46 31 Excellent REFERENCES 42 79 1 Poor 77 11910 P:\WORKING\CIP P1043 (Cathodic)\Sub 008000\Staff Report\Exhibit A.xls STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: November 6, 2013 SUBMITTED BY: Jeff Marchioro Senior Civil Engineer Bob Kennedy Engineering Manager PROJECT: R2108- 001102 DIV. NO. 5 APPROVED BY: Rod Posada, Chief, Engineering German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Award of a Construction Contract to Layfield Environmental Systems Corporation for 927-1 Recycled Water Reservoir Floating Cover and Liner Replacement GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) award a construction contract to Layfield Environmental Systems Corporation (Layfield) for the floating cover and liner replacement at the 927-1 Recycled Water Reservoir in an amount not-to-exceed $873,400 (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 construction contract with Layfield in an amount not-to-exceed $873,400 for the floating cover and liner replacement at the 927-1 Recycled Water Reservoir. 2 ANALYSIS: The 16.3 million gallon 927-1 Recycled Water Reservoir was originally constructed in the 1980s as part of the Jamacha Basin Water Reclamation Site. The reservoir was improved and fitted with its existing reinforced polypropylene (RPP) liner and floating cover in 1997. The floating cover has been repeatedly repaired to maintain the integrity of the geomembrane material. The existing cover had substantial damage and had to be repaired due to the fire that went through the Habitat Management Area (HMA) in 2007. The existing cover material typically has a life expectancy of 15-20 years. It is no longer cost effective to continue to repair the existing cover that has reached the end of its life expectancy. The District has typically replaced polypropylene covers on other reservoirs at a frequency of approximately 15 years which is commensurate with the age of the existing 927-1 existing cover and liner material. District staff performed a life cycle cost analysis for the replacement of the liner and cover with various combinations of geomembrane materials and concluded that RPP was the best alternative. The analysis considered replacement frequencies of materials with dissimilar warranties for various material combinations. District staff prepared the bid documents in-house. Mayer Reprographics (Mayer) distributed the bid documents electronically through Mayer’s online planroom. Staff contacted the three contractors that bid on the previous Patzig 624-1 Reservoir floating cover project (Erosion Control Applications, Inc., Layfield, and MPC Containment International LLC) prior to the bid process to encourage them to submit a bid for the Project. Floating cover installation work is very specialized and only these three contractors are commonly known to install the “mechanically tensioned” style cover that is currently in use at the 927-1 Reservoir. The Project was advertised for bid on August 26, 2013. A Pre-bid Meeting and site visit were held on September 4, 2013, which was attended by four (4) contractors. Two addenda were sent out to all bidders and plan houses on September 5, 2013 and September 11, 2013 to address contractors' questions asked during the bidding period. Two (2) bids were received on September 19, 2013. The table below provides the bid results. 3 CONTRACTOR TOTAL BID AMOUNT 1. Layfield Environmental Systems Corporation $873,400 2. MPC Containment International LLC $995,920 The Engineer's Estimate is $950,000. The evaluation process included reviewing all bids submitted for conformance to the contract documents. The lowest bidder, Layfield, submitted a responsible bid and holds a Class A Contractor’s license which expires on May 31, 2014. Staff checked the references provided with Layfield’s bid. The references indicated that Layfield is a well-established and well recognized company as well as a recognized leader for development of the “mechanically tensioned” style cover that is currently in use at the 927-1 Reservoir. Layfield acquired the business assets of CW Neal Corporation (CW Neal) in April 2004. CW Neal installed the existing 927-1 Reservoir floating cover in 1997. The District has previously worked with Layfield to install, repair, and maintain floating covers at the 927-1 Reservoir and other reservoirs in the District including the liner and cover recently installed at the 624-1 Reservoir. The proposed Project Manager has experience throughout southern California on similar projects and received good references. A background search of the company was performed on the internet and revealed no outstanding issues with this company. Layfield submitted the Company Background and Company Safety Questionnaires as required by the Contract Documents. Staff has verified that the bid bond provided by Hartford Fire Insurance Company is valid. Once Layfield signs the contract, they will furnish the performance bond and labor and materials bond. Staff will verify both bonds prior to executing the contract. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The total budget for CIP R2108, as approved in the FY 2014 budget, is $1,400,000. Total expenditures, plus outstanding commitments and forecast, are $1,103,660. Based on a review of the financial budget, the Project Manager anticipates that the budget is sufficient to support the Project. See Attachment B for Budget Detail. Finance has determined that 100% of the funding is available from the Replacement Fund for CIP R2108. 4 STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide high value water and wastewater services to the customers of the Otay Water District in a professional, effective, and efficient manner” and the General Manager’s Vision, “A District that is at the forefront in innovations to provide water services at affordable rates, with a reputation for outstanding customer service.” LEGAL IMPACT: None. JM/BK:jf P:\WORKING\CIP R2108 - 927-1 Reservoir Cover Replacement\Staff Reports\BD-11-06-13, Staff Report, 927-1 Res Floating Cvr Repl , (JM-BK).docx Attachments: Attachment A – Committee Action Attachment B – Budget Detail Exhibit A – Location Map ATTACHMENT A SUBJECT/PROJECT: R2108-001102 Award of a Construction Contract to Layfield Environmental Systems Corporation for 927-1 Recycled Water Reservoir Floating Cover and Liner Replacement COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on October 23, 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 – Budget Detail SUBJECT/PROJECT: R2108-001102 Award of a Construction Contract to Layfield Environmental Systems Corporation for 927-1 Recycled Water Reservoir Floating Cover and Liner Replacement Date Updated: 9/19/2013 Budget 1,400,000 Planning Regulatory Agency Fees 50 50 - 50 PETTY CASH CUSTODIAN Standard Salaries 1,547 1,547 - 1,547 Total Planning 1,597 1,597 - 1,597 Design 001102 Consultant Contracts 2,445 2,445 - 2,445 ALTA LAND SURVEYING INC 500 500 - 500 LAYFIELD ENVIRONMENTAL SYSTEMS Service Contracts 76 76 - 76 SAN DIEGO DAILY TRANSCRIPT 1,610 1,610 - 1,610 MAYER REPROGRAPHICS INC Standard Salaries 44,032 44,032 - 44,032 Total Design 48,663 48,663 - 48,663 Construction Labor 150,000 - 150,000 150,000 30,000 - 30,000 30,000 CM CONSULTANT 873,400 - 873,400 873,400 LAYFIELD ENVIRONMENTAL SYSTEMS Total Construction 1,053,400 - 1,053,400 1,053,400 Grand Total 1,103,660 50,260 1,053,400 1,103,660 Vendor/Comments Otay Water District R2108-Res - 927-1 Reservoir Cover Replacement Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost PROJECT SITE927-1 Reservoir SALT CREEKGOLF CLUB HU N T E P K W Y 980-1 Reservoir Access Road PROCTOR MO U N T MI G U E L R D VALLEY RD Aä EAST H ST 980-2 Reservoir 944-1 Reservoir 711-3Reservoir PROJECTSITE ! VICINITY MAP NTS ?ò Aä ?Ë ;&s DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ?p F P:\ W O R K I N G \ C I P R 2 1 0 8 - 9 2 7 - 1 R e s e r v o i r C o v e r R e p l a c e m e n t \ G r a p h i c s \ E x h i b i t s - F i g u r e s \ E x h i b i t A . m x d OTAY WATER DISTRICTRESERVOIR 927-1 FLOATING COVERAND LINER REPLACEMENT EXHIBIT A F 0 1,000500Feet CIP R2108 1 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: November 6, 2013 SUBMITTED BY: Jeff Marchioro Senior Civil Engineer Bob Kennedy Engineering Manager PROJECT NO: N/A DIV. NO. 3, 5 APPROVED BY: Rod Posada, Chief, Engineering German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Approval of a Second Agreement between Otay Water District and Helix Water District for the Canta Lomas/Vista Grande Road Metered Interconnection and Approval of Amendments to Three (3) Agreements between Otay Water District and Helix Water District for the Sir Francis Drake Drive/Explorer Road, Sweetwater Springs Boulevard/Loma Lane, and Gillispie Drive and Del Rio Road Metered Interconnections GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (Otay) Board of Directors (Board) authorize the General Manager to execute a Second Agreement for the Canta Lomas/Vista Grande Road metered interconnection and three (3) amendments to existing agreements for the Sir Francis Drake Drive/Explorer Road, Sweetwater Springs Boulevard/Loma Lane, and Gillispie Drive and Del Rio Road metered interconnections between Otay and the Helix Water District (Helix) (see Exhibit A for Project locations). COMMITTEE ACTION: Please see Attachment A. 2 PURPOSE: To obtain Board authorization for the General Manager to execute a Second Agreement for the Canta Lomas/Vista Grande Road metered interconnection and three (3) amendments to existing agreements for the Sir Francis Drake Drive/Explorer Road, Sweetwater Springs Boulevard/Loma Lane, and Gillispie Drive and Del Rio Road metered interconnections between Otay and Helix. ANALYSIS: For many years, Otay and Helix have mutually benefited from various interconnections between the two water districts for emergencies. These interconnections have provided increased reliability and flexibility during power outages and other disruptions in service. To date, Otay has thirty-one (31) emergency interconnections with various water purveyors including Cal-Am, Sweetwater Authority, City of San Diego, and Helix. Eight (8) of these interconnections are between Otay and Helix, as summarized in the table below. Inter- connection with Helix Date Installed Metered/Not Metered, Flow Direction Agreement Status Agreement Revision2 1 Blossom Lane 1969 Not metered, to Otay no agreement1 Not applicable 2 Grand Avenue unknown Not metered, from Otay no agreement1 Not applicable 3 S. Barcelona Street 1975 Not metered, to/from Otay no agreement1 Not applicable 4 Sir Francis Drake Drive/ Explorer Road 2010 Metered, to Otay Executed 2008, due to expire 2018 Attached Amendment 5 Canta Lomas/Vista Grande 2001 Metered, to/from Otay Executed 2001, Expired 2011 Attached “Second Agreement” 6 Sweetwater Springs Boulevard/ Loma Lane 2006 Metered, to/from Otay Executed 2005, due to expire 2015 Attached Amendment 7 Gillispie Drive 2011 Metered, to/from Otay Combined agreement executed 2012, no expiration Attached Amendment 8 Del Rio Road 2011 Metered, to/from Otay 1. An agreement will be created when the interconnect is improved (e.g., a meter added) in the future. 2. Agreement revisions described in detail below. 3 The five (5) interconnections with agreements summarized in the table above were compared and reviewed by Otay and Helix staff and corresponding legal counsels with the general intent of consistently updating all existing agreements. The attached “Second Agreement” was prepared for the Canta Lomas/Vista Grande. The attached amendments were created for the remaining interconnections with agreements (Sir Francis Drake Drive/Explorer Road, Sweetwater Springs Boulevard/Loma Lane and Gillispie Drive and Del Rio Road). The most significant change to the agreements was removing expiration dates from the Term Section to match the Gillispie Drive and Del Rio Road existing agreement that was executed last year. Removing the current 10 year term from the existing agreements will save staff time tracking expiration dates and renewing agreements and also prevent the oversight of an expired agreement. The attached “Second Agreement” (see Attachment B-1) was created since the Canta Lomas/ Vista Grande Road original agreement (see Attachment B-2) expired on April 16, 2011. Other modifications include updates to Sections titled Delivery, Ability to Supply Water, Estimation of Quantity of Water Delivered, Maintenance, Water Quality, Access, Term, and Notice to provide consistency across all interconnect agreements. Also record site plans and/or improvement drawings were added to all agreements/ amendments to provide consistent exhibits for each agreement. Where necessary, new Exhibits were edited in red to clarify ownership or maintenance boundaries. FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. 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.” 4 LEGAL IMPACT: None. JM/BK:jf P:\WORKING\CIP P2422\Staff Reports\Staff Report 11-6-13 Attachments and Exhibit\BD 11-06-13, Staff Report, Helix-Otay Interconnections Agreements and Amendments, (JM-BK).docx Attachments: Exhibit A – Location Map Attachment A – Committee Action Attachment B-1 – Second Agreement (Canta Lomas/Vista Grande Rd) Attachment B-2 – Existing Agreement (Canta Lomas/Vista Grande Rd) Attachment C-1 – Amendment (Sir Francis Drake Dr/Explorer Rd) Attachment C-2 – Existing Agreement (Sir Francis Drake Dr/Explorer Rd) Attachment D-1 – Amendment (Sweetwater Springs Blvd/Loma Ln) Attachment D-2 – Existing Agreement (Sweetwater Springs Blvd/Loma Ln) Attachment E-1 – Amendment (Gillispie Drive and Del Rio Road) Attachment E-2 – Existing Agreement (Gillispie Drive and Del Rio Rd) ATTACHMENT A SUBJECT/PROJECT: N/A Approval of a Second Agreement between Otay Water District and Helix Water District for the Canta Lomas/Vista Grande Road Metered Interconnection and Approval of Amendments to Two (2) Agreements between Otay Water District and Helix Water District for the Sir Francis Drake Drive/Explorer Road and Sweetwater Springs Boulevard/Loma Lane Metered Interconnections COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on October 23, 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. !(5 !(2!(1 !(4 !(8 !(6 !(7 !(3 OWDHEADQUARTERS HELIXWATERDISTRICT OTAYWATERDISTRICT 3"_ ?Ë ?Ë ?p ^_ Jamacha Rd Chase Av Jamacha Blvd Washington Av Avocado Blvd Fury Ln Kempton St W illo w Glen Dr ?ä ?ä E. Main St !( !(!( !( !(!( !( !( VICINITY MAP NTS ;&s DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ?ò Aä ?Ë ?p F P:\WORKING\CIP P2422\Graphics\Exhibits\Exhibit A, Location Map.mxd OTAY WATER DISTRICTHELIX WATER DISTRICT & OTAY WATER DISTRICTEMERGENCY INTERCONNECTIONS EXHIBIT A F 0 10.5 Miles LegendNon-Metered Interconnections !(1 Blossom Lane !(2 Grand Avenue !(3 South Barcelona Street Metered Interconnections !(4 Sir Francis Drake Drive/Explorer Road !(5 Canta Lomas/Vista Grande Road !(6 Sweetwater Springs Boulevard/Loma Lane !(7 Gillispie Drive !(8 Del Rio Road 1 OWD WO 8960 / HELIX WO 3513 CANTA LOMAS – VISTA GRANDE INTERCONNECTION SECOND AGREEMENT FOR EMERGENCY INTERCONNECTIONS BETWEEN OTAY WATER DISTRICT AND HELIX WATER DISTRICT This Agreement is made and entered into as of , 2013 and effective as of April 16, 2011, by and between Otay Water District, a Municipal Water District organized and existing pursuant to Water Code Section 71000 et seq, (hereinafter referred to as “Otay”) and Helix Water District, an Irrigation District organized and existing under the Irrigation District Law of the State of California, Water Code Section 20500 et seq, (hereinafter referred to as “Helix”). Otay and Helix are collectively referred to herein as the “Parties.” RECITALS A. Otay and Helix are member agencies of the San Diego County Water Authority (hereinafter referred to as the “Authority”), and are retail water purveyors that receive water from the Authority. B. The Authority is the regional wholesale water purveyor organized and existing under the County Water Authority Act of the State of California (Chapter 45, Water Code-Appendix). C. Helix and Otay entered into an Agreement for Emergency Interconnections Between Otay Water District and Helix Water District on April 16, 2001 (“First Agreement”), for a term of ten (10) years. After the ten-year period, the Parties continued to operate as though the First Agreement were effective and did not engage in the termination activities identified in Paragraph 14 of the First Agreement. D. The Parties desire by this Second Agreement to restate, renew, and clarify the terms of the First Agreement to continue providing emergency water service connections to each other. AGREEMENT NOW, THEREFORE, IT IS AGREED AS FOLLOWS: 1. Definitions. For purposes of this Agreement, the following words and phrases shall have the following meanings: a. Emergency. "Emergency" shall mean any sudden unexpected occurrence that significantly reduces available water so as to jeopardize the public health or safety, or scheduled maintenance where the interconnection is deemed the only source of potable water. ATTACHMENT B-1 2 b. Surplus Capacity. "Surplus capacity" shall mean that amount of water, as determined by Helix and/or Otay, in excess of the amount necessary to meet the demand of its respective system. 2. Delivery. In emergency situations, as defined above in Section 1 (a), Helix and Otay shall supply treated water through their facilities to the interconnection located at Canta Lomas and Vista Grande Road, County of San Diego, as shown in Exhibit A, attached hereto and incorporated herein, when requested by either Party pursuant to the terms of this Agreement. Both Parties shall use their best efforts to provide 24 hours written advance notice of the need for such emergency interconnection, and in all cases shall notify the supplying Party prior to actual use. The supplying Party shall operate the interconnection. 3. Ability to Supply Water. Neither district guarantees that surplus capacity, as defined above in Section 1(b), will be available at the time an emergency occurs. To the extent that surplus capacity is available, in the sole discretion of the delivering district with no undue burden on its water consumers, the receiving district may utilize the interconnection(s) described in the attached exhibit to the extent of such availability. Water service connections provided hereunder shall not be used to provide supplemental or additional water supply to meet growth in demand not already addressed in the Water Resources Master Plan for either district. 4. Estimate of Quantity of Water Delivered. The estimated quantity of water to be delivered under this agreement shall be mutually agreed upon by the two parties prior to its delivery. Both Parties shall use their best efforts to not exceed ninety (90) days delivery of water through the agreed upon connection in the aggregate in any calendar year. 5. Payment for Water Delivered. If water is delivered under the terms of this Agreement, the supplying district will report the amount of water that has been supplied through a meter to the receiving district, and to the Authority for credit, within ten (10) calendar days of receipt of delivered water. The districts agree to request that the Authority bill this amount to the receiving district and credit this amount to the supplying district. The cost of the water delivered through the emergency interconnection shall be the Authority's treated water rate in effect at the time of delivery. 6. Maintenance. Helix and Otay shall be responsible for the maintenance and operation costs of the valve(s) connecting to their respective systems as shown in Exhibit A, attached hereto and incorporated herein. Helix and Otay shall be responsible for any costs associated with their respective pipelines leading up to the interconnection, and responsible for 50% of all costs of any repair, required future relocation, or modification of the connection itself (vault, meter, etc.). Maintenance and maintenance costs related to the cleanup of graffiti on the facilities and meter testing and/or calibration (performed on October of each year) will alternate each calendar year between the Parties. Otay will be responsible for the even years, while Helix will be responsible for the odd years. Helix and Otay shall promptly share test results. ATTACHMENT B-1 3 7. Water Quality. Neither district warrants the quality of treated water delivered through any emergency interconnection established pursuant to this Agreement. The receiving District shall flush the connection at their own cost prior to providing service to its customers. 8. Access. During the term of this Agreement, authorized representatives of each district shall be granted access to the facilities and property of the other district for the purpose of establishing emergency interconnections pursuant to this Agreement, provided that the Party desiring access will provide at least 24 hour notice of such access. Such notice may be oral or written. 9. Indemnification. Each district shall be responsible for the willful misconduct and negligent acts or omissions of its officer, directors, agents, employees, and subcontractors. Each district shall indemnify, hold harmless, and defend the other from and against all claims, demands, and liabilities for bodily injury, property damage, or other damages caused by the willful or negligent act or omission of the indemnifying party or its officer, directors, agents, employees or subcontractors. 10. Term. The term of this Agreement shall be from the date of its execution until terminated pursuant to the terms of this Agreement. 11. Integration. This Agreement, including any and all Exhibits to it, represent the entire understanding of both districts as to those matters contained in it, and supersedes and cancels any prior oral or written understandings, promises or representations with respect to those matters covered in it. This Agreement may not be modified or altered except in writing signed by both districts. 12. Laws, Venue, and Attorneys’ Fees. This Agreement shall be interpreted in accordance with the laws of the State of California. The Parties agree that if any dispute shall arise in relation to this Agreement, they will attempt to resolve such dispute informally, in good faith. If such good faith informal resolution does not resolve the issue, the Parties agree that the matter will be directed to the General Managers of both Parties for another good faith attempt at resolution. If that attempt does not resolve the issue, the Parties agree to mediation under the rules of the American Arbitration Association or any other neutral organization agreed upon before having recourse in a court of law. Any agreements resulting from mediation shall be documented in writing by all Parties. All mediation results shall be “non-binding” and inadmissible for any purpose in any legal proceeding, unless all Parties otherwise agree in writing. If mediation is not successful, and an action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of San Diego, State of California. In the event of any such litigation between the parties, the prevailing party shall be entitled to recover all reasonable costs incurred, including reasonable attorney’s fees, as determined by the court. 13. Termination. Either party may terminate this agreement upon ninety (90) days written notice to the other party. In the event of termination, Helix and Otay will ATTACHMENT B-1 4 be responsible for 50% each of the costs of disconnecting or removing connections. Salvaged metering devices, valves and hardware shall remain the property of the district that is responsible as shown on the approved improvement plans. The party that retains shared components owned 50% by each agency (e.g.; meter and vault) shall pay the other agency 50% of fair market salvage value of shared components. 14. Notice. Proposed amendments to this Agreement will be delivered by United States Post Office, certified mail, and addressed to: General Manager Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978-2004 General Manager Helix Water District 7811 University Avenue La Mesa, CA 91941-4927 Any notice or instrument required to be given or delivered by this Agreement (e.g.; flow reporting) may be given or delivered by regular or electronic mail addressed to the designated representative. 15. Severability. In the event any one of the provisions of this Agreement shall for any reason be held invalid, illegal or unenforceable, the remaining provisions of this Agreement shall be unimpaired, and the invalid, illegal or unenforceable provision(s) shall be replaced by a mutually acceptable provision, which being valid, legal and enforceable, comes closest to the intention of the parties underlying the invalid, illegal or unenforceable provision. 16. Assignment. In no event shall this Agreement be assigned by either Party without first obtaining the prior written consent of the other Party. 17. Waiver. No covenant, term or condition of this Agreement shall be deemed to be waived by any party hereto unless such waiver is in writing and executed by the party making the waiver. No waiver of any breach of any of the terms, covenants, or conditions of this Agreement shall be construed or held to be a waiver of any succeeding or preceding breach of the same or any other term, covenant or condition contained herein. 18. Execution of Agreement. This Agreement shall not be deemed to have been accepted and shall not be binding upon either Party until duly authorized officers of both parties have executed it. This Agreement. including any and all Exhibits to it, represents the entire understanding of both districts as to those matters contained in it, and supersedes and cancels any prior oral or written understandings, promises or representations with respect to those matters covered in it. This agreement may not be modified or altered except in writing, signed by both Parties. ATTACHMENT B-1 5 [signatures continued on next page] IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. By: ______________________________ By: ______________________________ Mark Watton, General Manager Carlos V. Lugo, General Manager Otay Water District Helix Water District Approved as to form: By: ______________________________ By: ______________________________ General Counsel General Counsel Otay Water District Helix Water District ATTACHMENT B-1 ATTACHMENT B-1 EXHIBIT A ATTACHMENT B-2 ATTACHMENT B-2 ATTACHMENT B-2 ATTACHMENT B-2 ATTACHMENT B-2 ATTACHMENT B-2 ATTACHMENT B-2 ATTACHMENT B-2 ATTACHMENT B-2 1 HELIX WO 1841 / OWD CIP P2487 SIR FRANCIS DRAKE DRIVE EMERGENCY INTERCONNECTION AMENDMENT TO AGREEMENT FOR EMERGENCY INTERCONNECTION BETWEEN HELIX WATER DISTRICT AND OTAY WATER DISTRICT This Amendment is made and entered into as of , 2013 by and between Otay Water District, a Municipal Water District organized and existing pursuant to Water Code Section 71000 et seq, (hereinafter referred to as “Otay”) and Helix Water District, an irrigation district organized and existing under the Irrigation District Law of the State of California, Water Code section 20500 et seq, (hereinafter referred to as “Helix”). Otay and Helix are collectively referred to herein as the “Parties.” RECITALS WHEREAS, the Parties entered into an Agreement (the “Agreement”) on May 21, 2008 for emergency interconnection for the Sir Francis Drake Drive Emergency Interconnection Project, Helix WO 1841 and Otay CIP P2487 (the “Project”); and WHEREAS, Section 19 of the Agreement provides that either Helix or Otay may give notice that they wish to amend this Agreement at any time, an amendment to the Agreement will be mutually agreed upon by both Helix and Otay in writing; and WHEREAS, Helix and Otay desire to amend the Agreement to incorporate the required revisions to the Agreement. NOW THEREFORE, in consideration of the Recitals and mutual obligations of the parties as herein expressed, Helix and Otay agree as follows: 1. That Section 1, Delivery be deleted in its entirety and replaced with the following: “1. Delivery. In emergency situations, as defined below in Section 1 (a), Helix shall supply treated water through its facilities to the interconnection located as shown in Exhibit A and Exhibit B, attached hereto and incorporated herein, when requested by Otay pursuant to the terms of this Agreement. Otay shall use its best efforts to provide 24 hours written advance notice of the need for such emergency interconnection and in all cases shall notify Helix prior to actual use. Otay shall operate the interconnection.” 2. That Section 1(a), “Emergency”, Defined be deleted in its entirety and replaced with the following: “a. “Emergency”, Defined. Emergency shall mean any sudden unexpected occurrence that significantly reduces available water so as to jeopardize the public ATTACHMENT C-1 2 health or safety, or scheduled maintenance where the interconnection is deemed the only source of potable water.” 3. That Section 1(b), “Surplus Capacity”, Defined be deleted in its entirety and replaced with the following: “b. “Surplus Capacity”, Defined. Surplus Capacity is defined as the amount of water, as determined by Helix and/or Otay, in excess of the amount necessary to meet the demand of its respective system.” 4. That Section 2, Ability to Supply Water be deleted in its entirety and replaced with the following: “2. Ability to Supply Water. Helix does not guarantee that surplus capacity, as defined above in Section 1(b), will be available at the time an emergency occurs. To the extent that surplus capacity is available, in the sole discretion of Helix with no undue burden on its water consumers, the receiving district may utilize the interconnection(s) described in Exhibit A and Exhibit B to the extent of such availability. Water service connections provided hereunder shall not be used to provide supplemental or additional water supply to meet growth in demand not already addressed in the Water Resources Master Plan for either district.” 5. That Section 4, Estimation of Quantity of Water Delivered be deleted in its entirety and replaced with the following: “4. Estimation of Quantity of Water Delivered. The estimated quantity of water to be delivered under this Agreement shall be mutually agreed upon by the Parties prior to its delivery. Otay shall use its best effort to not exceed ninety (90) days delivery of water through the agreed upon connection in the aggregate in any calendar year.” 6. That Section 6, Maintenance be deleted in its entirety and replaced with the following: “6. Maintenance. Otay and Helix shall be responsible for the maintenance and operation costs of the valve(s) connecting to their respective systems as shown in Exhibit A and Exhibit B, attached hereto and incorporated herein. Maintenance, repair, or operation costs for the interconnection facility shall be the responsibility of Otay. Otay shall be solely responsible for any costs associated with the pipelines leading up to the interconnection, and responsible for 100% of all costs of any repair, relocation, abandonment, meter testing and/or calibration (performed on October of each year), or modification of the connection itself (vault, meter, etc.). Otay shall promptly share any test results with Helix.” 7. That Section 7, Water Quality be amended to include the following: ATTACHMENT C-1 3 “The receiving district shall flush the connection at their own cost prior to providing service to its customers.” 8. That Section 8, Access be amended to include the following: “The Party desiring access will provide at least 24 hour notice of such access. Such notice may be oral or written.” 9. That Section 10, Term be deleted in its entirety and replaced with the following: “10. Term. The term of this Agreement shall be from the date of its execution until terminated pursuant to the terms of this Agreement.” 10. That Section 12, Laws, Venue, and Attorneys’ Fees be deleted in its entirety and replaced with the following: “12. Laws, Venue, and Attorneys’ Fees. This Agreement shall be interpreted in accordance with the laws of the State of California. The Parties agree that if any dispute shall arise in relation to this Agreement, they will attempt to resolve such dispute informally, in good faith. If such good faith informal resolution does not resolve the issue, the Parties agree that the matter will be directed to the General Managers of both Parties for another good faith attempt at resolution. If that attempt does not resolve the issue, the Parties agree to mediation under the rules of the American Arbitration Association or any other neutral organization agreed upon before having recourse in a court of law. Any agreements resulting from mediation shall be documented in writing by all Parties. All mediation results shall be “non-binding” and inadmissible for any purpose in any legal proceeding, unless all Parties otherwise agree in writing. If mediation is not successful, and an action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of San Diego, State of California. In the event of any such litigation between the parties, the prevailing Party shall be entitled to recover all reasonable costs incurred, including reasonable attorney’s fees, as determined by the court.” 11. That Section 13, Termination be deleted in its entirety and replaced with the following: “13. Termination. Either party may terminate this Agreement upon ninety (90) days written notice to the other party. In the event of termination, Otay will be responsible for 100% of the total costs of disconnecting or removing connections. Helix shall be responsible of the cost of the removal of the valve that is connected to its system only. Salvaged metering devices, valves, and hardware shall remain the property of Otay.” 12. That Section 14, Notice be deleted in its entirety and replaced with the following: ATTACHMENT C-1 4 “14. Notice. Proposed amendments to this Agreement will be delivered by United States Post Office, certified mail, and addressed to: General Manager Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978-2004 General Manager Helix Water District 7811 University Avenue La Mesa, CA 91941-4927 Any notice or instrument required to be given or delivered by this Agreement (e.g.; flow reporting) may be given or delivered by regular or electronic mail addressed to the designated representative.” 13. That all of the terms and conditions of the original Agreement shall remain in full force and effect. 14. This Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 15. If any provision of this Amendment shall be held invalid or unenforceable by a court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision of this Amendment unless elimination of such provision materially alters the rights and obligations set forth herein. IN WITNESS WHEREOF, this First Amendment to Agreement is executed by Helix and Otay on the day and year first written above. HELIX WATER DISTRICT OTAY WATER DISTRICT By: ______________________________ By: ____________________________ Name: Carlos V. Lugo Name: Mark Watton______________ Title: General Manager _ Title: __General Manager___________ APPROVED AS TO FORM: APPROVED AS TO FORM: By: __________________________________ By: ______________________________ General Counsel General Counsel Helix Water District Otay Water District ATTACHMENT C-1 ATTACHMENT C-1EXHIBIT B ATTACHMENT C-2 ATTACHMENT C-2 ATTACHMENT C-2 ATTACHMENT C-2 ATTACHMENT C-2 ATTACHMENT C-2 ATTACHMENT C-2 1 HELIX WO 730 / OWD CIPW422-WO30093 SWEETWATER SPRINGS BLVD EMERGENCY INTERCONNECTION AMENDMENT TO AGREEMENT FOR EMERGENCY INTERCONNECTION BETWEEN HELIX WATER DISTRICT AND OTAY WATER DISTRICT This Amendment is made and entered into as of , 2013 by and between Otay Water District, a Municipal Water District organized and existing pursuant to Water Code Section 71000 et seq, (hereinafter referred to as “Otay”) and Helix Water District, an irrigation district organized and existing under the Irrigation District Law of the State of California, Water Code section 20500 et seq, (hereinafter referred to as “Helix”). Otay and Helix are collectively referred to herein as the “Parties.” RECITALS WHEREAS, the Parties entered into an Agreement (the “Agreement”) on October 26, 2005 for emergency interconnection for the Emergency Interconnection at Sweetwater Springs Blvd Project, Helix WO 730 and Otay CIPW422-WO 30093 (the “Project”); and WHEREAS, Section 19 of the Agreement provides that either Helix or Otay may give notice that they wish to amend this Agreement at any time, an amendment to the Agreement will be mutually agreed upon by both Helix and Otay in writing; and WHEREAS, Helix and Otay desire to amend the Agreement to incorporate the required revisions to the Agreement. NOW THEREFORE, in consideration of the Recitals and mutual obligations of the parties as herein expressed, Helix and Otay agree as follows: 1. That Section 1, Delivery be deleted in its entirety and replaced with the following: “1. Delivery. In emergency situations, as defined below in Section 1 (a), Helix and Otay shall supply treated water through their facilities to the interconnection located as shown in Exhibit A, Exhibit B and Exhibit C, attached hereto and incorporated herein, when requested by either Party pursuant to the terms of this Agreement. Both Parties shall use their best efforts to provide 24 hours written advance notice of the need for such emergency interconnection and in all cases shall notify the supplying Party prior to actual use. The supplying Party shall operate the interconnection.” 2. That Section 1(a), “Emergency”, Defined be deleted in its entirety and replaced with the following: “a. “Emergency”, Defined. Emergency shall mean any sudden unexpected occurrence that significantly reduces available water so as to jeopardize the public health or safety, or scheduled maintenance where the interconnection is deemed the only source of potable water.” ATTACHMENT D-1 2 3. That Section 1(b), “Surplus Capacity”, Defined be deleted in its entirety and replaced with the following: “b. “Surplus Capacity”, Defined. Surplus Capacity is defined as the amount of water, as determined by Helix and/or Otay, in excess of the amount necessary to meet the demand of its respective system.” 4. That Section 2, Ability to Supply Water be deleted in its entirety and replaced with the following: “2. Ability to Supply Water. Neither District guarantees that surplus capacity, as defined above in Section 1(b), will be available at the time an emergency occurs. To the extent that surplus capacity is available, in the sole discretion of the delivering district with no undue burden on its water consumers, the receiving district may utilize the interconnection(s) described in Exhibit A, Exhibit B and Exhibit C to the extent of such availability. Water service connections provided hereunder shall not be used to provide supplemental or additional water supply to meet growth in demand not already addressed in the Water Resources Master Plan for either district.” 5. That Section 4, Estimation of Quantity of Water Delivered be deleted in its entirety and replaced with the following: “4. Estimation of Quantity of Water Delivered. The estimated quantity of water to be delivered under this Agreement shall be mutually agreed upon by the Parties prior to its delivery. Both Parties shall use their best efforts to not exceed ninety (90) days delivery of water through the agreed upon connection in the aggregate in any calendar year.” 6. That Section 6, Maintenance be deleted in its entirety and replaced with the following: “6. Maintenance. Otay and Helix shall be responsible for the maintenance and operation costs of the valve(s) connecting to their respective systems as shown in Exhibit A, Exhibit B and Exhibit C, attached hereto and incorporated herein. Helix and Otay shall be responsible for any costs associated with their respective pipelines leading up to the interconnection, and responsible for 50% of all costs of any repair, required future relocation, or modification of the connection itself (vault, meter, etc.). Maintenance and maintenance costs related to the cleanup of graffiti on the facilities and meter testing and/or calibration (performed on October of each year) will alternate each calendar year between the Parties. Otay will be responsible for the even years, while Helix will be responsible for the odd years. Helix and Otay shall promptly share test results.” 7. That Section 7, Water Quality be amended to include the following: “The receiving district shall flush the connection at their own cost prior to providing service to its customers.” ATTACHMENT D-1 3 8. That Section 8, Access be amended to include the following: “The Party desiring access will provide at least 24 hour notice of such access. Such notice may be oral or written.” 9. That Section 10, Term be deleted in its entirety and replaced with the following: “10. Term. The term of this Agreement shall be from the date of its execution until terminated pursuant to the terms of this Agreement.” 10. That Section 12, Laws, Venue, and Attorneys’ Fees be deleted in its entirety and replaced with the following: “12. Laws, Venue, and Attorneys’ Fees. This Agreement shall be interpreted in accordance with the laws of the State of California. The Parties agree that if any dispute shall arise in relation to this Agreement, they will attempt to resolve such dispute informally, in good faith. If such good faith informal resolution does not resolve the issue, the Parties agree that the matter will be directed to the General Managers of both Parties for another good faith attempt at resolution. If that attempt does not resolve the issue, the Parties agree to mediation under the rules of the American Arbitration Association or any other neutral organization agreed upon before having recourse in a court of law. Any agreements resulting from mediation shall be documented in writing by all Parties. All mediation results shall be “non-binding” and inadmissible for any purpose in any legal proceeding, unless all Parties otherwise agree in writing. If mediation is not successful, and an action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of San Diego, State of California. In the event of any such litigation between the parties, the prevailing Party shall be entitled to recover all reasonable costs incurred, including reasonable attorney’s fees, as determined by the court.” 11. That Section 13, Termination be deleted in its entirety and replaced with the following: “13. Termination. Either party may terminate this agreement upon ninety (90) days written notice to the other party. In the event of termination, Helix and Otay will be responsible for 50% each of the costs of disconnecting or removing connections. Salvaged metering devices, valves and hardware shall remain the property of the district that is responsible as shown on the approved improvement plans. The party that retains shared components owned 50% by each agency (e.g.; meter and vault) shall pay the other agency 50% of fair market salvage value of shared components.” 12. That Section 14, Notice be deleted in its entirety and replaced with the following: “14. Notice. Proposed amendments to this Agreement will be delivered by United States Post Office, certified mail, and addressed to: ATTACHMENT D-1 4 General Manager Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978-2004 General Manager Helix Water District 7811 University Avenue La Mesa, CA 91941-4927 Any notice or instrument required to be given or delivered by this Agreement (e.g.; flow reporting) may be given or delivered by regular or electronic mail addressed to the designated representative.” 13. That all of the terms and conditions of the original Agreement shall remain in full force and effect. 14. This Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 15. If any provision of this Amendment shall be held invalid or unenforceable by a court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision of this Amendment unless elimination of such provision materially alters the rights and obligations set forth herein. IN WITNESS WHEREOF, this First Amendment to Agreement is executed by Helix and Otay on the day and year first written above. HELIX WATER DISTRICT OTAY WATER DISTRICT By: ______________________________ By: ____________________________ Name: Carlos V. Lugo Name: Mark Watton______________ Title: General Manager _ Title: __General Manager___________ APPROVED AS TO FORM: APPROVED AS TO FORM: By: __________________________________ By: ______________________________ General Counsel General Counsel Helix Water District Otay Water District ATTACHMENT D-1 EXHIBIT BATTACHMENT D-1 EXHIBIT CATTACHMENT D-1 • HELIX WO 730 OWD CIPW422/WO 30093 AGREEMENT FOR EMERGENCY INTERCONNECTION BETWEEN OTAY WATER DISTRICT AND HELIX WATER DISTRICT This Agreement is made and entered into as of -/P*&Wr*eL*\i /•2005,by and between Otay WaterDistrict, a Municipal Water District organizedand existing pursuant to Water Code Section 71000 et seq, (hereinafter"Otay") and Helix Water District, an Irrigation District organized and existing under the Irrigation District Law of the State ofCalifornia,Water Code Section 20500 et seq, (hereinafterreferredto as "Helix"). Otayand Helix are collectively referred to herein as the "Parties." RECITALS A. Otay and Helix are member agencies of the San Diego County Water Authority (hereinafter referred to as "Authority"), and are retail water purveyors that receive water from the Authority. B. " Authorityis theregional wholesalewater purveyororganized and existingunderthe County Water Authority Act of the State of California (Chapter 45, Water Code- Appendix). C. Otay and Helix desire by this Agreement to provide emergency water service connections to each other;such water service connections are not and shall not be used to provide a supplemental or additional water supply to meet the growth in demand not already addressed in the Water Resource MasterPlans for either District. AGREEMENT NOW,THEREFORE,IT IS AGREED AS FOLLOWS: 1.Delivery. In emergency situations,as defined below in Section 1(a), Helix and Otay shall supply treated water through their facilities to the interconnection located as shown in the following Exhibit A,attached hereto and incorporated herein,when requested by either party pursuant to the terms ofthis Agreement.Both Parties shall use their best efforts to provide 24 hours written advance notice ofthe need for such emergency interconnection and in all cases shall notify the supplying party prior to actual use. The supplying party shall operate the interconnection. a."Emergency",Defined.An "emergency"is defined as any sudden unexpected occurrence that significantly reduces available water so as to jeopardize the health and/or safety ofthe public. P:\WORKING\CIP W422\WO30093\Agreements-Contracts-RFPs\Final Agreement BBK Reviewed.DOC 1 ATTACHMENT D-2 b. "Surplus Capacity". Defined. "Surplus Capacity" is defined as the amount of water, as determined byHelix and Otay inexcess ofthe amount necessary to the demand of the Helix and Otay systems. 2. Ability to Supply Water. Neither District guarantees that surplus capacity,asdefined above in Section 1(b), will be available at the time an emergency situation occurs. To theextent that surplus capacity isavailable, inthe sole discretionofthedelivering party with no undue burden on its water consumers,the receiving party may utilize the interconnection(s)described in Exhibit A to the extent ofsuch availability. 3.Design and Construction.Helix agrees that Otay shall initially fund all costs ofthe design and construction ofthe emergency interconnection,subject to reimbursement by Helix, in the proportion set forth below, upon completion ofall work related tothe interconnection as set forth herein. The design and specifications shall conform to the Water Agency Standards (WAS). Items that are not covered by the WAS, shall be subject to Otay's and Helix's mutual approval. Otay shall act as the lead agency for purposes of the California Environmental Quality Act. Otay shall furnish all materials and hire a contractor to perform all construction work necessary tomake all connections,in accordance with approved plans and specifications.Upon completion,Otay shall provide Helix with "As-built"record drawings of the interconnection and provide any amendments to these drawings as they are developed. Upon 100%completion ofthe work, Otay shall bill Helix for 50% ofall costs incurred.Payment shall be made by Helix within 30 days ofreceipt ofinvoice. 4.Estimation of Quantity of Water Delivered.If water is to be delivered under the terms ofthis Agreement,the estimated quantity ofwater to be delivered and duration shall be mutually agreed upon by the two parties prior to its delivery. 5.Payment for Water Delivered.If water is delivered under the terms of this Agreement,the supplying party will report the amount of water that has been supplied through a meter to the receiving party and to the Authority for credit within ten (10)calendar days of receipt of delivered water.The Authority will bill this amount to the receiving party and credit this amount to the supplying party. The cost ofthe water delivered through the emergency interconnection shall be the Authority's treated water rate in effect at the time ofdelivery. 6.Maintenance.Otay and Helix shall be responsible for the maintenance and operation costs of the valve(s)connecting to their respective systems as shown in Exhibit A, attached hereto and incorporated herein.Maintenance,repair, or operation costs for the interconnection facility shall be the responsibility of the party identified in the Exhibits. Each District shall be solely responsible for any costs associated with its respective pipelineleadingupto the interconnection,andresponsiblefor50%ofall costsofanyrepair,relocation,abandonment,ormodificationofthe connection itself (vault,meter,etc.). ATTACHMENT D-2 7.Water Quality.Neither District warrants the quality of treated water delivered through any emergency interconnection established pursuant to this Agreement. 8.Access.During the term of this Agreement,authorized representatives of both Parties shall begranted access to the facilities and property oftheother party for the purpose of establishing emergency interconnections pursuant to this Agreement. 9-Indemnification.Each party shall be responsible for the willful misconduct and negligent acts or omissions of its officers,directors,agents,employees,and subcontractors.Eachpartyshallindemnify,hold harmless,anddefendtheother from andagainst allclaims,demands,andliabilities forbodily injury,property damage,or other damages caused bythe willful ornegligent actoromission ofthe indemnifying party or its officer, directors, agents, employees, or subcontractors. 10.Term.The term of this Agreement shall be from the date ofitsexecution for a period often (10)years ("Term"),unless terminated priortothattimepursuant tothe terms of this Agreement.The Agreement may be extended for one (1)additional and successive ten(10)year period,or such term asmaybe mutually agreed upon bythe Parties based upon Helix andOtay's needs.Either Helix or Otaymay exercise this option byproviding written notice totheotherDistrict,one hundred andeighty (180) days prior to the expiration of the term of this Agreement.The renewal of the Agreement shall require the approval of the Boardof Directors of both the Otay Water District and Helix Water District,which approval shall not unreasonably be withheld.Following the renewal term, the Parties may negotiate an additional extension ofthis Agreement ifsuch an extension meets the needs ofthe Parties and as may be mutually agreed upon in writing by the Parties. 11.Integration.This Agreement and any and all Exhibits to it,represents the entire understanding ofthePartiesasto thosematterscontained in it, and supersedes and cancelsanyprior oral or written understandings,promises or representations with respect to those matters covered in it. This Agreement may not be modified or altered except in writing signed by both Parties. 12.Laws,Venue,and Attorneys'Fees.This Agreement shall be interpreted in accordance with the laws of the State of California.If any action is brought to interpret or enforce anytermofthisAgreement,theactionshallbe brought inastate or federal court situated in theCounty ofSan Diego, State ofCalifornia. Inthe event of any such litigation between the parties, the prevailingparty shall be entitled to recover all reasonable costs incurred, including reasonable attorney's fees, as determined by the court. 13. Termination. Either party may terminate this Agreement upon thirty (30) days written noticeto the other party. Inthe event oftermination,Helix and Otaywillbe responsiblefor50%eachofthetotalcostsof disconnecting or removing connections. Salvaged metering devices, valves, and hardware shall remain the property ofthe district that is responsible as shown on exhibit. P:\WORKING\CIP W422\WO 30093\Agreements-Contracts-RFPs\Final Agreement BBK Reviewed.DOC 3 ATTACHMENT D-2 14.Notice.Anynotice or instrument required tobe given ordelivered bythis Agreement may be given or delivered bydepositing the same in anyUnited States Post Office, certified mail, return receipt requested, postage prepaid, addressed to: General Manager,Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley,CA 91978-2096 General Manager,Helix Water District Helix Water District 7811 University Avenue La Mesa,CA 91941-4927 and shall be effective upon receipt thereof. 15. Severability. In the event anyone ofthe provisions ofthis Agreement shall forany reason be held invalid, illegal or unenforceable, the remaining provisions of this Agreement shall be unimpaired,and the invalid, illegal or unenforceable provision(s) shall be replaced by a mutually acceptable provision which being valid, legal and enforceable,comes closest to the intention of the parties underlying the invalid, illegal or unenforceable provision. 16. Assignment. In no event shall this Agreement be assigned by either party without first obtaining the prior written consent ofthe other party. 17. Waiver. No covenant, term or condition of this Agreement shall be deemed to be waived byany partyhereto unless such waiver isinwriting and executed bytheparty making the waiver. No waiver of any breach of any of the terms,covenants,or conditions of this Agreement shall be construed or held to be a waiver of any succeeding or preceding breach ofthe same or any other term,covenant or condition contained herein. 18.Execution ofAgreement.This Agreement shall not be deemed to have been accepted and shall not be binding upon either District until duly authorized officers of both parties have executed it. This agreement may not be modified or altered except in writing,signed by both Parties. 19.Amendment ofAgreement.Either Helix or Otay may give notice that they wish to amend this Agreement at anytime with thirty (30)calendar days written notice.Any amendments will have to be mutually agreed upon by both Helix and Otayin writing. [signatures continued on nextpage] IN WITNESS WHEREOF,the parties have executed this Agreement as of the date first written above. P:\WORKING\CIPW422\WO 30093\Agreements-Contracts-RFPs\Final Agreement BBK Reviewed.DOC 4 ATTACHMENT D-2 By: Mark Watton, General Manager Otay Water District Appr6vec}asto form: By: "ounsel Helix Water District By: Mark Weston, General Manager Helix Water District -.. W P:\WORKING\CIP W422\WO 30093\Agreements-Contracts-RFPs\Final Agreement BBK Reviewed.DOC - ATTACHMENT D-2 in I C3 Mission] Bay IMPERIAL BEACH Tijuana Estuary VICINITY MAP EXIST. HWD 8"ACP WATERMAIN PROPOSED AREA _ OF CONSTRUCTION HELIX WATER DISTRICT OTAY WATER DISTRICT ENTRANCE TO MONTE VISTA HIGH SCHOOL MEXICO 1"=80" K~J EXIST. OWD12"ACP WATERMAIN LANE OTAY WATER DISTRICT AGREEMENT FOR EMERGENCY INTERCONNECTION BETWEEN HELIX WATER DISTRICT AND OTAY WATER DISTRICT WO 30093 C1PW422 EXHIBIT A ATTACHMENT D-2 12 " T R A N S I T I O N CO U P U N C MT H RI N G RE S T R A I N T CO O R O M A T E S H U T D O W N MT H CA R T ST A L K E R AT OT A Y WA T E R DIS T R I C T (6 1 9 ) 87 0 - 2 Z 2 B TH R U S T BL O C K -J S SO . F T ( T Y P ) FO R 1 2 " P I P E PR O F I I F VI F W FO R CO N C R E T E . WA S SE C T I O N - DIV I S I O N 03 4. F O R V A U L T AC C E S S O R I E S , WA S SE C T I O N - DIV I S I O N I I 5. F O R M E C H A N I C A L . W A S SE C T I O N - DIV I S I O N 1 5 I. P R I O R T O SU B U I T T I N G A S O . C O N T A C T O R S H A L L FIE L D VE R I F Y T H E S T R U C T U R A L SE C T I O N OF T H E R O A D . RO A D RE P A I R SH A L L ME E T CO U N T Y OF S A N DIE G O RI G H T - O F - W A Y PE R M I T RE Q U I R E M E N T S . 7. T H E PA V E M E N T SH A a BE RE S T O R E D TH E EN T I R E WK J T H OF T H E L A N E B Y TH E LE N G T H OF T H E PR O J E C T . AN D ME E T CO U N T Y OF S A N DI E G O SP E C I F I C A T I O N S . «. CO U N T Y OF S A N DI E G O RI G H T - O F - W A Y PE R M I T SH A a BE SI G N E D OF F PR I O R TO AC C E P T A N C E OF W O R K . ». CO N T R A C T O R SH A a PR O M O E SIG N E D AN D ST A M P E D ST R U C T U R A L CA L C U L A T I O N S FO R V A U L T F O R EN G I N E E R AP P R O V A L P R I O R T O OR D E R I N G . It t Aa MA T E R I A L S . A N D S H O P D R A W I N G S / C U T S H E E T S SH A a BE SU B M I T T E D TO OW D P R I O R T O CO N S T R U C T I O N . HW D W. O . 73 0ATTACHMENT D-2 1 HELIX WO 2196 / OWD CIP P2488 and P2489 GILLISPIE DRIVE AND DEL RIO ROAD EMERGENCY INTERCONNECTIONS AMENDMENT TO AGREEMENT FOR EMERGENCY INTERCONNECTION BETWEEN HELIX WATER DISTRICT AND OTAY WATER DISTRICT This Amendment is made and entered into as of , 2013 by and between Otay Water District, a Municipal Water District organized and existing pursuant to Water Code Section 71000 et seq, (hereinafter referred to as “Otay”) and Helix Water District, an irrigation district organized and existing under the Irrigation District Law of the State of California, Water Code section 20500 et seq, (hereinafter referred to as “Helix”). Otay and Helix are collectively referred to herein as the “Parties.” RECITALS WHEREAS, the Parties entered into an Agreement (the “Agreement”) on June 22, 2012 for emergency interconnections for the Emergency Interconnections at Gillispie Drive and Del Rio Road Project, Helix WO 2196 and Otay CIP P2488/P2489 (the “Project”); and WHEREAS, Section 19 of the Agreement provides that either Helix or Otay may give notice that they wish to amend this Agreement at any time, an amendment to the Agreement will be mutually agreed upon by both Helix and Otay in writing; and WHEREAS, Helix and Otay desire to amend the Agreement to incorporate the required revisions to the Agreement. NOW THEREFORE, in consideration of the Recitals and mutual obligations of the parties as herein expressed, Helix and Otay agree as follows: 1. That Section 1(a), “Emergency”, Defined be deleted in its entirety and replaced with the following: “a. “Emergency”, Defined. Emergency shall mean any sudden unexpected occurrence that significantly reduces available water so as to jeopardize the public health or safety, or scheduled maintenance where the interconnection is deemed the only source of potable water.” 2. That Section 1(b), “Surplus Capacity”, Defined be deleted in its entirety and replaced with the following: “b. “Surplus Capacity”, Defined. Surplus Capacity is defined as the amount of water, as determined by Helix and/or Otay, in excess of the amount necessary to meet the demand of its respective system.” ATTACHMENT E-1 2 3. That Section 4, Estimation of Quantity of Water Delivered be deleted in its entirety and replaced with the following: “4. Estimation of Quantity of Water Delivered. The estimated quantity of water to be delivered under this Agreement shall be mutually agreed upon by the Parties prior to its delivery. Both Parties shall use their best efforts to not exceed ninety (90) days delivery of water through the agreed upon connection in the aggregate in any calendar year.” 4. That Section 6, Maintenance be deleted in its entirety and replaced with the following: “6. Maintenance. Otay and Helix shall be responsible for the maintenance and operation costs of the valve(s) connecting to their respective systems as shown in Exhibit A, attached hereto and incorporated herein. Helix and Otay shall be responsible for any costs associated with their respective pipelines leading up to the interconnection, and responsible for 50% of all costs of any repair, required future relocation, or modification of the connection itself (vault, meter, etc.). Maintenance and maintenance costs related to the cleanup of graffiti on the facilities and meter testing and/or calibration (performed on October of each year) will alternate each calendar year between the Parties. Otay will be responsible for the even years, while Helix will be responsible for the odd years. Helix and Otay shall promptly share test results.” 5. That Section 7, Water Quality be amended to include the following: “The receiving district shall flush the connection at their own cost prior to providing service to its customers.” 6. That Section 13, Termination be deleted in its entirety and replaced with the following: “13. Termination. Either party may terminate this agreement upon ninety (90) days written notice to the other party. In the event of termination, Helix and Otay will be responsible for 50% each of the costs of disconnecting or removing connections. Salvaged metering devices, valves and hardware shall remain the property of the district that is responsible as shown in Exhibit A. The party that retains shared components owned 50% by each agency (e.g.; meter and vault) shall pay the other agency 50% of fair market salvage value of shared components.” 7. That Section 14, Notice be deleted in its entirety and replaced with the following: “14. Notice. Proposed amendments to this Agreement will be delivered by United States Post Office, certified mail, and addressed to: ATTACHMENT E-1 3 General Manager Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978-2004 General Manager Helix Water District 7811 University Avenue La Mesa, CA 91941-4927 Any notice or instrument required to be given or delivered by this Agreement (e.g.; flow reporting) may be given or delivered by regular or electronic mail addressed to the designated representative.” 8. That all of the terms and conditions of the original Agreement shall remain in full force and effect. 9. This Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 10. If any provision of this Amendment shall be held invalid or unenforceable by a court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision of this Amendment unless elimination of such provision materially alters the rights and obligations set forth herein. IN WITNESS WHEREOF, this First Amendment to Agreement is executed by Helix and Otay on the day and year first written above. HELIX WATER DISTRICT OTAY WATER DISTRICT By: ______________________________ By: ____________________________ Name: Carlos V. Lugo Name: Mark Watton______________ Title: General Manager _ Title: __General Manager___________ APPROVED AS TO FORM: APPROVED AS TO FORM: By: __________________________________ By: ______________________________ General Counsel General Counsel Helix Water District Otay Water District ATTACHMENT E-1 OWD CIP P2488 and P2489 /Helix WO 2196 AGREEMENT FOR EMERGENCY INTERCONNECTIONS BETWEEN OTAY WATER DISTRICT AND HELIX WATER DISTRICT This Agreement is made and entered into as of \lvf)Xs Z-Z-—,2012,by and between Otay Water District,a Municipal Water District organized and existing pursuant to Water Code Section 71000 et seq,(hereinafter referred to as "Otay")and Helix Water District,an Irrigation District organized and existing under the Irrigation District Law of the State of California,Water Code Section 20500 et seq,(hereinafter referred to as "Helix").Otay and Helix are collectively referred to herein as the "Parties." RECITALS A.Otay and Helix are member agencies of the San Diego County Water Authority (hereinafter referred to as the "Authority"),and are retail water purveyors that receive water from the Authority. B. The Authority is the regional wholesale water purveyor organized and existing under the County Water Authority Act of the State of California (Chapter 45, Water Code-Appendix). C.Otay and Helix desire by this Agreement,to provide emergency water service connections to each other;such water service connections are not and shall not be used to provide a supplemental or additional water supply to meet the growth in demand not already addressed in the Water Resource Master Plans for either Party. AGREEMENT NOW,THEREFORE,IT IS AGREED AS FOLLOWS: 1.Delivery.In emergency situations,as defined below in Section 1 (a),Helix and Otay shall supply treated water through their facilities to the interconnections located at Gillispie Drive and Del Rio Road,County of San Diego, as shown in Exhibit A,attached hereto and incorporated herein, when requested by either Party pursuant to the terms of this Agreement.Both Parties shall use their best efforts to provide 24 hours written advance notice of the need for such emergency interconnection,and in all cases shall notify the supplying Party prior to actual use.The supplying Party shall operate the interconnection. a."Emergency",Defined. An "emergency"is defined as any sudden unexpected occurrence that significantly reduces available water so as to jeopardize the health and/or safety ofthe public. b."Surplus Capacity",Defined."Surplus Capacity"is defined as the amount of water, as determined by Helix and Otay, in excess of the amount necessary to satisfy the demand ofthe Helix and Otay systems. 1 ATTACHMENT E-2 2. Ability to Supply Water. Neither Party guarantees that Surplus Capacity, as defined above in Section 1(b), will be available at the time an emergency situation occurs.To the extent that Surplus Capacity is available,in the sole discretion of the supplying Party with no undue burden on its water consumers, the receiving Party may utilize the interconnection(s)described in Exhibit A to the extent of such availability. 3. Design and Construction.Helix agrees that Otay shall initially fund all costs of the design and construction of the emergency interconnections,subject to reimbursement by Helix, in the proportion set forth below, upon completion of all work related to the interconnections as set forth herein.The design and specifications shall conform to the Water Agency Standards (WAS).Items that are not covered by the WAS shall be subject to Otay's and Helix's mutual approval.Otay shall act as the lead agency for purposes of the California Environmental Quality Act.Otay shall furnish all materials and hire a contractor to perform all construction work necessary to make all connections,in accordance with approved plans and specifications.Upon completion,Otay shall provide Helix with "As-built"record drawings of the interconnection and provide any amendments to these drawings as they are developed.Upon 100%completion of the work,Otay shall bill Helix for 50%of all costs incurred.Payment shall be made by Helix within 30 days ofreceipt of invoice. 4.Estimation of Quantity of Water Delivered.If water is to be delivered under the terms of this Agreement,the estimated quantity of water to be delivered and duration of such delivery shall be mutually agreed upon by the two Parties prior to its delivery. 5.Payment for Water Delivered.If water is delivered under the terms of this Agreement,the supplying Party will report the amount of water that has been supplied through a meter to the receiving Party and to the Authority for credit within ten (10)calendar days of the receiving Party's receipt of delivered water. The Authority will bill this amount to the receiving Party and credit this amount to the supplying P.The cost of the water delivered through the emergency interconnection shall be the Authority's treated water rate in effect at the time of delivery. 6.Maintenance.Otay and Helix shall be responsible for the maintenance and operation costs of the valve(s)connecting to their respective systems as shown in Exhibit A,attached hereto and incorporated herein.Maintenance,repair,or operation costs for the interconnection facility shall be the responsibility of the Party identified in the Exhibits. Each Party shall be solely responsible for any costs associated with its respective pipeline leading up to the interconnection,and shall also be responsible for 50%of all costs of any repair,relocation, abandonment,or modification of the connection itself (vault,meter,etc.). Maintenance related to the cleanup of graffiti on the facilities will alternate each calendar year between the Parties. Otay will be responsible for the even years, while Helix will be responsible for the odd years. The costs associated with the maintenance or cleanup of graffiti will be absorbed by each Party. ATTACHMENT E-2 7.Water Quality.Neither Party warrants the quality of treated water delivered through any emergency interconnection established pursuant to this Agreement. 8.Access.During the term of this Agreement,authorized representatives of both Parties shall be granted access to the facilities and property of the other Party for the purpose of establishing emergency interconnections pursuant to this Agreement,provided that the Party desiring access will provide at least 24 hour notice ofsuch access.Such notice may be oral or written. 9.Indemnification.Each Party shall be responsible for the willful misconduct and negligent acts or omissions of its officers,directors,agents,employees,and subcontractors.Each Party shall indemnify,hold harmless,and defend the other from and against all claims,demands,and liabilities for bodily injury,property damage,or other damages caused by the willful or negligent act or omission of the indemnifying Party or its officer,directors,agents,employees,or subcontractors. 10. Term.The term of this Agreement shall be from the date of its execution until terminated pursuant to the terms of this Agreement.. 11.Integration.This Agreement and any and all Exhibits to it,represent the entire understanding of the Parties as to those matters contained in the Agreement,and supersede and cancel any prior oral or written understandings,promises or representations with respect to those matters covered in the Agreement.This Agreement may not be modified or altered except in writing signed by both Parties. 12.Laws,Venue,and Attorneys'Fees.This Agreement shall be interpreted in accordance with the laws of the State of California.The Parties agree that if any dispute shall arise in relation to this Agreement,they will attempt to resolve such dispute informally,in good faith. If such good faith informal resolution does not resolve the issue, the Parties agree that the matter will be directed to the General Managers of both Parties for another good faith attempt at resolution.If that attempt does not resolve the issue,the Parties agree to mediation under the rules of the American Arbitration Association or any other neutral organization agreed upon before having recourse in a court of law.Any agreements resulting from mediation shall be documented in writing by all Parties.All mediation results shall be "non-binding"and inadmissible for any purpose in any legal proceeding, unless all Parties otherwise agree in writing.Ifmediation is not successful,and an action is brought to interpret or enforce any term of this Agreement,the action shall be brought in a state or federal court situated in the County of San Diego, State of California.In the event of any such litigation between the parties,the prevailing Party shall be entitled to recover all reasonable costs incurred, including reasonable attorney's fees, as determined by the court. 13.Termination.Either Party may terminate this Agreement upon thirty (30) days written notice to the other Party. In the event of termination,each Party shall be responsible for 50%of the total costs of disconnecting or removing connections. ATTACHMENT E-2 Salvaged metering devices,valves,and hardware shall remain the property of the Party that is responsible as shown in Exhibit A. 14.Notice.Any notice or instrument required to be given or delivered by this Agreement may be given or delivered by depositing the same in any United States Post Office,certified mail, and return receipt requested,postage prepaid, addressed to: General Manager Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley,CA 91978-2004 General Manager Helix Water District 7811 University Avenue La Mesa,CA 91941-4927 and shall be effective upon receipt thereof. 15.Severability.In the event any one of the provisions of this Agreement shall for any reason be held inyalid,illegal or unenforceable,the remaining provisions of this Agreement shall be unimpaired,and the invalid,illegal or unenforceable provision(s)shall be replaced by a mutually acceptable provision which being valid, legal and enforceable,comes closest to the intention of the Parties underlying the invalid,illegal or unenforceable provision. 16.Assignment.In no event shall this Agreement be assigned by either Party without first obtaining the prior written consent ofthe other Party. 17. Waiver. No covenant,term or condition of this Agreement shall be deemed to be waived by any party hereto unless such waiver is in writing and executed by the party making the waiver.No waiver of any breach ofany of the terms,covenants, or conditions of this Agreement shall be construed or held to be a waiver of any succeeding or preceding breach of the same or any other term,covenant or condition contained herein. 18.Execution of Agreement.This Agreement shall not be deemed to have been accepted and shall not be binding upon either Party until duly authorized officers of both parties have executed it. This agreement may not be modified or altered except in writing,signed by both Parties. 19.Amendment ofAgreement.Either Party may give notice that they wish to amend this Agreement at any time with thirty (30)calendar days'written notice. Any amendments will have to be mutually agreed upon by both Parties in writing. [signatures continued on nextpage] ATTACHMENT E-2 IN WITNESS WHEREOF,the Parties have executed this Agreement as ofthe date first written above. By: Mark Watton,GeneralManager Otay Water District Approved as to form: By:5l£gu^-cAc-^,. General Counsel Otay Water District By: Carlos Lugo,Generqz Manager Helix Water District By:L4SJ&U4 litUf Gejreral Counsel felix Water District P:\WORKING\CIP P2488 Del Rio Rd Interconnection\Agreements-Contracts-RFPs\Helix\Otay Helix Interconnection Agreement GCR Comments CB 17 10.doc ATTACHMENT E-2 IN WITNESS WHEREOF,the Parties have executed this Agreement as ofthe date first written above. By: Mark Watton.General Manager Otay Water District Approved as to form By: General Counsel Otay Water District By: By: Carlos Lugo,General Manager Helix Water District General Counsel Helix Water District P:\NOftKlfia\CIP m««:«i »t«1W iai*mttts»r'.im'<l>itwmenlit-Uiaitiu:t.*-*Tfi\«ti.i*\9t»i «*-••*lnt»r--o.iB»:ti«B fc«t««Mitt -,(:«CMWitj ATTACHMENT E-2 © < £ X U a.-.•i(K .1 MN/K/<Unmm ATTACHMENT E-2 Ex h i b i t A (2 of 2) ATTACHMENT E-2 AGENDA ITEMS 7 & 8 (Have been posted as separate attachments on the District’s website) WATER SUPPLY ASSESSMENTS AND VERIFICATION REPORTS DATED SEPTEMBER 2013 FOR THE OTAY RANCH VILLAGE 2 SPA AMENDMENT & OTAY RANCH UNIVERSITY VILLAGES PROJECT (3 NORTH AND A PORTION OF 4, 8 EAST, AND 10) STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: November 6, 2013 SUBMITTED BY: Dan Martin Engineering Manager PROJECT: Various DIV. NO. ALL APPROVED BY: Rod Posada, Chief of Engineering German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Informational Item – First Quarter Fiscal Year 2014 Capital Improvement Program Report GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) accept the First Quarter Fiscal Year 2014 Capital Improvement Program (CIP) Report for review and receives a summary via PowerPoint presentation (see Attachment C). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To update the Board about the status of all CIP project expenditures and to highlight significant issues, progress, and milestones on major projects. ANALYSIS: To keep up with growth and to meet our ratepayers' expectations to adequately deliver safe, reliable, cost-effective, and quality water, each year the District staff prepares a Six-Year CIP Plan that identifies the District’s infrastructure needs. The CIP is comprised of four categories consisting of backbone capital facilities, replacement/renewal projects, capital purchases, and developer's reimbursement projects. The First Quarter Fiscal Year 2014 update is intended to provide a detailed analysis of progress in completing these projects within the allotted time and budget of $13.9 million. Expenditures through the First Quarter totaled approximately $1.5 million. Approximately 11% of the Fiscal Year 2014 expenditure budget was spent (see Attachment B). FISCAL IMPACT: Joe Beachem, Chief Financial Officer No fiscal impact as this is an informational item only. STRATEGIC GOAL: The Capital Improvement Program supports the District’s Mission statement, “To provide high value water and wastewater services to the customers of the Otay Water District, in a professional, effective, and efficient manner” and the General Manager’s Vision, “A District that is at the forefront in innovations to provide water services at affordable rates, with a reputation for outstanding customer service.” LEGAL IMPACT: None. DM/RP:jf P:\Forms\D-Construction\CIP Quarterly Reports\CIP Qtr Reports\FY 2014\Q1\Staff Report\BD 11-06-13, Staff Report, First Quarter FY 2014 CIP Report, (DM-RP).docx Attachments: Attachment A – Committee Action Attachment B - Fiscal Year 2014 First Quarter CIP Expenditure Report Attachment C – Presentation ATTACHMENT A SUBJECT/PROJECT: Various Informational Item – First Quarter Fiscal Year 2014 Capital Improvement Program Report COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a Committee Meeting held on October 23, 2013. The Committee supported Staff’s recommendation. NOTE: The “Committee Action” is written in anticipation of the Committee moving the item forward for Board approval. This report will be sent to the Board as a Committee approved item, or modified to reflect any discussion or changes as directed from the Committee prior to presentation to the full Board. 2014 09/30/13 CIP No.Description Project Manager FY 2014 Budget Expenses Balance Expense to Budget %Budget Expenses Balance Expense to Budget %Comments CAPITAL FACILITY PROJECTS - p2083 PS - 870-2 Pump Station Replacement (28,000 GPM) Marchioro 540$ 34$ 506$ 6%12,581$ 646$ 11,935$ 5% On target. $625k professional services contract awarded October 2, 2013 to Carollo. Carollo NTP anticipated October 15, 2013. P2190 PL - 10-Inch, 1485 Zone, Jamul Highlands Martin - - - 0%228 3 225 1%No budget in FY 2014. P2267 36-Inch Main Pumpouts and Air/Vacuum Ventilation Installations Vasquez 5 - 5 0%435 234 201 54%Project has been deferred to FY 2015. p2403 PL - 12-Inch, 624 Zone, Heritage Road - Olympic/Otay Valley Martin - - - 0%925 - 925 0%No budget in FY 2014. P2434 Rancho Del Rey Groundwater Well Development Marchioro 100 3 97 3%8,700 3,600 5,100 41% Project progress has been slowed by design consultant budget/scope negotiations. Project will be placed on hold after the design has been completed. P2451 Otay Mesa Desalination Conveyance and Disinfection System Kennedy 1,500 224 1,276 15%30,000 1,852 28,148 6% Spending adjusted based on limited notice to proceed. P2466 Regional Training Facility Coburn-Boyd 14 3 11 21%300 284 16 95%On track to spend budget this fiscal year. P2486 Asset Management Plan Condition Assessment and Data Acquisition Zhao 75 12 63 16%1,090 806 284 74% The project is on track for this fiscal year. The spending is for Black & Vetch to host the Asset Management workshop for District management team. P2511 Otay Interconnect Pipeline Marchioro 600 136 464 23%37,300 1,811 35,489 5%On target. P2514 PL - 30-Inch, 980 Zone, Hunte Parkway - Proctor Valley/Use Area Martin 130 41 89 32%1,815 1,709 106 94% Water line in service. Current work consists of claims resolution. P2528 30-Inch Potable Water Pipeline Manifold at 624 Reservoirs Marchioro - - - 0%7,000 18 6,982 0%Project on hold. P2537 Operations Yard Property Acquisition Improvements Cameron 50 1 49 2%300 22 278 7%Spending for this project will occur later this year. P2539 South Bay Bus Rapid Transit (BRT) Utility Relocations Cameron 80 5 75 6%320 5 315 2%Spending for this project will occur later this year. P2541 624 Pressure Zone PRSs Schmidt 300 25 275 8%600 25 575 4% On track for design; to be completed by the end of December 2013. Construction will start in March 2014. P2542 850-3 Reservoir Interior Coating Cameron 10 - 10 0%440 - 440 0% Project expenditures are expected in the 4th quarter of FY 2014. P2543 850-1 Reservoir Interior/Exterior Coating Cameron - - - 0%475 - 475 0%No budget in FY 2014. FISCAL YEAR-TO-DATE, 09/30/13 LIFE-TO-DATE, 09/30/13 FISCAL YEAR 2014 FIRST QUARTER REPORT EXPENDITURES THROUGH SEPTEMBER 30, 2013 ($000) 2014 09/30/13 CIP No.Description Project Manager FY 2014 Budget Expenses Balance Expense to Budget %Budget Expenses Balance Expense to Budget %Comments CAPITAL FACILITY PROJECTS - P2544 850-2 Reservoir Interior/Exterior Reservoir Coating Cameron - - - 0%1,075 - 1,075 0%No budget in FY 2014. R2028 RecPL - 8-Inch, 680 Zone, Heritage Road - Santa Victoria/Otay Valley Martin - - - 0%600 - 600 0%No budget in FY 2014. R2042 RecPL - 8-Inch, 927 Zone, Rock Mountain Road - SR-125/EastLake Martin - - - 0%140 - 140 0%No budget in FY 2014. R2047 RecPL - 12-Inch, 680 Zone, La Media Road - Birch/Rock Mountain Martin - - - 0%450 - 450 0%No budget in FY 2014. R2048 RecPL - Otay Mesa Distribution Pipelines and Conversions Martin 100 - 100 0%2,200 471 1,729 21%Developer driven project. R2058 RecPL - 16-Inch, 860 Zone, Airway Road - Otay Mesa/Alta Martin 100 - 100 0%3,500 1,339 2,161 38%Developer driven project. R2077 RecPL - 24-Inch, 860 Zone, Alta Road - Alta Gate/Airway Kennedy 135 3 132 2%4,500 2,746 1,754 61% Anticipate spending full budget by the end of FY 2014. R2087 RecPL - 24-Inch, 927 Zone, Wueste Road - Olympic/Otay WTP Cameron 5 - 5 0%7,000 1,030 5,970 15%Project is on hold. R2091 RecPS - 927-1 Pump Station Upgrade (10,000 GPM) and System Enhancements Martin 250 88 162 35%2,130 1,983 147 93% Project nearing completion. Current work includes claims resolution. R2107 RWCWRF Screening Compactor and Chlorine Injectors Enclosure Stalker 60 - 60 0%130 72 58 55% Installation contractor being selected and work will be performed during low recycled water demand period. R2108 Res - 927-1 Reservoir Cover Replacement Marchioro 100 61 39 61%1,400 61 1,339 4% Project has been accelerated. Construction will be completed this fiscal year rather than next fiscal year. Anticipated FY 2014 expenditures are $1.1M rather than $0.1M. R2110 RecPS - 927-1 Optimization and Pressure Zone modifications Marchioro 150 - 150 0%150 - 150 0% Pending Operations completion of distribution system improvements, including replacement of five (5) service saddles. S2039 Hidden Mountain Lift Station Enclosure Stalker 8 - 8 0%37 30 7 81% No expenditures anticipated in Q1 and Q2 FY 2014. Installation contractor being selected and work will be done in the next few months. S2043 RWCWRF Sludge Handling System Schmidt 50 11 39 22%1,500 11 1,489 1% Will use this budget for completion of Feasibility Study by the end of the year. Total Capital Facility Projects Total:4,362 647 3,715 15%127,321 18,758 108,563 15% FISCAL YEAR-TO-DATE, 09/30/13 LIFE-TO-DATE, 09/30/13 2014 09/30/13 CIP No.Description Project Manager FY 2014 Budget Expenses Balance Expense to Budget %Budget Expenses Balance Expense to Budget %Comments CAPITAL FACILITY PROJECTS - REPLACEMENT/RENEWAL PROJECTS p2366 APCD Engine Replacements and Retrofits Rahders 5 15 (10) 300%3,488 2,497 991 72% Moved $45,000 from future years to Fiscal Year 2014 for the purchase of required emissions retrofit equipment. P2382 Safety and Security Improvements Ramirez 500 17 483 3%3,397 1,920 1,477 57% $150,000 in system upgrades have been identified for completion before the end of the 3rd quarter. It is expected that the majority of the balance will be expensed this year and the remaining in FY 2015. P2440 I-905 Utility Relocations Marchioro 10 1 9 10%1,600 1,581 19 99% Staff anticipates that Caltrans will issue a $159,576 credit to Otay. Staff anticipates that Caltrans will issue an additional $33,493 credit to Otay; however, the $33,493 credit is on hold pending Caltrans' receipt of final accounting numbers from the City of San Diego's sewer contractor. p2453 SR-11 Utility Relocations Marchioro 125 5 120 4%2,250 163 2,087 7% On target. Construction phase award scheduled for January 2014. P2477 Res - 624-1 Reservoir Cover Replacement Martin 50 22 28 44%1,000 918 82 92%Project is complete. P2485 SCADA Communication System and Software Replacement Stalker 540 24 516 4%1,846 793 1,053 43% SCADA selection process is underway with a NTP anticipated for January 2014. Bid package is being prepared for South Wireless Radio Project. P2493 624-2 Reservoir Interior/Exterior Coating Cameron 1,550 21 1,529 1%1,950 37 1,913 2%Construction to begin in 3rd quarter of FY 2014. P2494 Multiple Species Conservation Plan Coburn-Boyd 60 1 59 2%887 800 87 90% Will use this budget the last half of Fiscal Year 2014. P2495 San Miguel Habitat Management/Mitigation Area Coburn-Boyd 140 10 130 7%2,040 904 1,136 44% Budget will be used. Expenses are less the first half of the budget year. Anticipated using full budget by the end of FY 2014. P2496 Otay Lakes Road Utility Relocations Martin 70 4 66 6%325 279 46 86%Work under construction. P2504 Regulatory Site Access Road and Pipeline Relocation Cameron 325 5 320 2%900 320 580 36% Project is on hold until funds are available from San Miguel Fire. P2507 East Palomar Street Utility Relocation Cameron 230 63 167 27%900 345 555 38% Caltrans driven project. Construction to be completed in 2015. P2508 Pipeline Cathodic Protection Replacement Program Marchioro 60 1 59 2%300 4 296 1% Board to award contract to Cathodic Protection Services Program consultant on November 6, 2013. FISCAL YEAR-TO-DATE, 09/30/13 LIFE-TO-DATE, 09/30/13 2014 09/30/13 CIP No.Description Project Manager FY 2014 Budget Expenses Balance Expense to Budget %Budget Expenses Balance Expense to Budget %Comments CAPITAL FACILITY PROJECTS - P2513 East Orange Avenue Bridge Crossing Cameron 300 117 183 39%1,350 1,282 68 95% Project was accelerated at the request of Caltrans. Construction complete. Contractor is processing punchlist items. Project acceptance will be in the 2nd quarter of FY 2014. P2515 870-1 Reservoir Paving Cameron 490 14 476 3%550 71 479 13% Project is in design. Additional environmental surveys will delay construction expenditures. P2518 803-3 Reservoir Interior/Exterior Coating Cameron 125 47 78 38%750 557 193 74% Contractor is performing disinfection procedures. Construction is expected to be completed in 2nd quarter of FY 2014. p2519 832-2 Reservoir Interior/Exterior Coating Cameron 335 260 75 78%775 529 246 68% Contractor is performing disinfection procedures. Construction is expected to be completed in 2nd quarter of FY 2014. P2520 Motorola Mobile Radio Upgrade Martinez 30 - 30 0%100 64 36 64%No planned Expeditures in Q1 FY 2014. P2521 Large Meter Vault Upgrade Program Holly 105 9 96 9%600 205 395 34% Retrofit of vaults will continue as sites are identified. P2529 711-2 Reservoir Interior & Exterior Coating Cameron - - - 0%600 - 600 0%No budget for FY 2014. P2530 711-1 Reservoir Interior & Exterior Coating Cameron - - - 0%725 - 725 0%No budget for FY 2014. P2531 944-1 Reservoir Interior & Exterior Coating Cameron 5 - 5 0%175 - 175 0% Expenditures expected in the 4th quarter of FY 2014. P2532 944-2 Reservoir Interior & Exterior Coating Cameron 5 - 5 0%725 - 725 0% Expenditures expected in the 4th quarter of FY 2014. P2533 1200-1 Reservoir Interior & Exterior Coating Cameron - - - 0%325 - 325 0%No budget for FY 2014. P2534 978-1 Reservoir Interior & Exterior Coating Cameron - - - 0%225 - 225 0%No budget for FY 2014. P2535 458-2 Reservoir Interior Coating Cameron 345 4 341 1%425 12 413 3%Project will be delayed until FY 2015. P2538 Administration and Operations Building Fire Sprinkler Replacement Program Cameron 100 1 99 1%400 1 399 0%Design to begin in 2nd quarter of FY 2014. R2109 Sweetwater River Wooden Trestle Improvement for the Recycled Water Forcemain Coburn-Boyd 100 - 100 0%350 - 350 0% Spending for this project will occur later this Fiscal Year. R2111 RWCWRF - RAS Pump Replacement Schmidt 100 1 99 1%100 1 99 1% On track, waiting on pump repair quote to finalize budget impact. S2012 San Diego County Sanitation District Outfall and RSD Outfall Replacement Kennedy 450 - 450 0%3,550 817 2,733 23% The County will invoice the District at the end of the fiscal year. S2024 Campo Road Sewer Main Replacement Schmidt 275 18 257 7%5,500 63 5,437 1% On track for release of design contract by March 2014. S2027 Rancho San Diego Pump Station Rehabilitation Schmidt 500 3 497 1%2,900 42 2,858 1% The County is expected to invoice the District after the Board approves the agreement with the County at the January Board meeting. S2033 Sewer System Rehabilitation Schmidt 800 78 722 10%6,000 310 5,690 5% On track for design to be completed by end of December 2013, with construction started by March 2014. Total Replacement/Renewal Projects Total:7,730 741 6,989 10%47,008 14,515 32,493 31% FISCAL YEAR-TO-DATE, 09/30/13 LIFE-TO-DATE, 09/30/13 2014 09/30/13 CIP No.Description Project Manager FY 2014 Budget Expenses Balance Expense to Budget %Budget Expenses Balance Expense to Budget %Comments CAPITAL FACILITY PROJECTS - CAPITAL PURCHASE PROJECTS P2282 Vehicle Capital Purchases Rahders 266 - 266 0%5,021 2,876 2,145 57%No planned expeditures in Q1 FY 2014. P2285 Office Equipment and Furniture Capital Purchases Dobrawa 55 - 55 0%589 504 85 86% Purchases will be made throughout the year and expenses will be at budget by year end. p2286 Field Equipment Capital Purchases Rahders 149 - 149 0%1,758 1,163 595 66% Purchases will be made throughout the year and expenses will be at budget by year end. P2469 Information Technology Network and Hardware Segura 350 28 322 8%2,509 1,413 1,096 56% Project is under bid; will meet spending target for FY 2014. P2470 Financial System Enhancements Stevens 130 6 124 5%2,322 1,625 697 70% Project is under development; will meet target in FY 2014. P2540 Work Order Management System Replacement Stevens 300 - 300 0%700 - 700 0% System is being bid; expect to award contract in January 2014. S2042 Sewer Vehicle Capital Purchases Rahders 367 - 367 0%367 - 367 0% This is expected to be expensed 100% by January 2014. Total Capital Purchase Projects Total:1,617 34 1,583 2%13,266 7,581 5,685 57% DEVELOPER REIMBURSEMENT PROJECTS P2104 PL - 12-Inch, 711 Zone, La Media Road - Birch/Rock Mountain Martin - - - 0%833 - 833 0%No budget in FY 2014. P2107 PL - 12-Inch, 711 Zone, Rock Mountain Road - La Media/SR 125 Martin - - - 0%722 - 722 0%No budget in FY 2014. R2082 RecPL - 24-Inch, 680 Zone, Olympic Parkway - Village 2/Heritage Martin 1 - 1 0%1,747 - 1,747 0% Developer driven project. No major activity anticipated for FY 2014. R2083 RecPL - 20-Inch, 680 Zone, Heritage Road - Village 2/Olympic Martin 1 - 1 0%400 - 400 0% Developer driven project. No major activity anticipated for FY 2014. R2084 RecPL - 20-Inch, 680 Zone, Village 2 - Heritage/La Media Martin 1 - 1 0%971 1 970 0% Developer driven project. No major activity anticipated for FY 2014. R2085 RecPL - 20-Inch, 680 Zone, La Media - State/Olympic Martin 1 - 1 0%600 - 600 0% Developer driven project. No major activity anticipated for FY 2014. R2094 Potable Irrigation Meters to Recycled Water Conversions Martin 150 40 110 27%1,700 1,605 95 94%Project under construction. Total Developer Reimbursement Projects Total:154 40 114 26%6,973 1,606 5,367 23% GRAND TOTAL 13,863$ 1,462$ 12,401$ 11%194,568$ 42,460$ 152,108$ 22% FISCAL YEAR-TO-DATE, 09/30/13 LIFE-TO-DATE, 09/30/13 Otay Water District Capital Improvement Program Fiscal Year 2014 First Quarter (through September 30, 2013) Attachment C 7/9/2013 Orange Avenue 12” Waterline Installation Background The approved CIP Budget for Fiscal Year 2014 consists of 63 projects that total $13.9 million. These projects are broken down into four categories. 1.Capital Facilities $ 4.4 million 2.Replacement/Renewal $ 7.7 million 3.Capital Purchases $ 1.6 million 4.Developer Reimbursement $ 0.2 million Overall expenditures through the First Quarter Fiscal Year 2014 totaled $1.5 million, which is 11% of the Fiscal Year budget. 2 Fiscal Year 2014 First Quarter Update ($1,000) CIP CAT Description FY 2014 Budget FY 2014 Expenditures % FY 2014 Budget Spent Total Life-to- Date Budget Total Life-to-Date Expenditures % Life-to- Date Budget Spent 1 Capital Facilities $4,362 $647 15%$127,321 $18,758 15% 2 Replacement/ Renewal $7,730 $741 10%$47,008 $14,515 31% 3 Capital Purchases $1,617 $34 2%$13,266 $7,581 57% 4 Developer Reimbursement $154 $40 26%$6,973 $1,606 23% Total: $13,863 $1,462 11%$194,568 $42,460 22% 3 Fiscal Year 2014 First Quarter CIP Budget Forecast vs. Expenditures 4 District Map of Major CIP Projects 5 CIP Projects in Construction Orange Avenue/I-805 12” Potable Water Installation (P2513) Installation of New 12” Water Line To Replace The Palomar Avenue Line During Palomar Bridge Replacement By Caltrans $1.35M Budget Start: January 2013 Substantial Completion: August 2013 12” Steel Pipe in I-805/Orange Avenue Bridge 6 7/2/2013 CIP Projects in Construction 803-3 & 832-2 Reservoir Interior/Exterior Coating & Upgrades(P2518/P2519) Remove and Replace Deteriorating Reservoir Coatings Structural Modifications Including Level Indicator Replacement and Anode Replacement $1.53M Budget Start: March 2013 Estimated Completion: November 2013 7 7/3/2013 7/12/2013 Above: 803-3 Interior Coating Below: 832-2 Exterior Blast Containment 8 Construction Contract Status CIP NO.PROJECT TITLE CONTRACTOR BASE BID AMOUNT CONTRACT AMOUNT W/ ALLOWANCE S NET CHANGE ORDERS LTD*CURRENT CONTRACT AMOUNT TOTAL EARNED TO DATE % CHANGE ORDERS W/ ALLOWANC E CREDIT** % COMPLETE EST. COMP. DATEPROJECT TOTAL % R2091 944-1R Recycled Pump Station Upgrade & System Enhancements Sepulveda $1,099,423 $1,162,423 $90,505 8.2%$1,252,928 $1,232,928 7.8%98.4%October 2013 P2514 30-Inch Potable Pipeline in Hunte Parkway Sepulveda $1,172,257 $1,212,257 $126,233 10.8%$1,312,508 $1,312,508 8.3%100.0%Complete June 2013 P2513 Orange Avenue/ I-805 12" Potable Water Installation Basile $767,000 $872,000 $19,290 2.5%$891,290 $891,290 2.2%100.0% Complete August 2013 P2518/ P2519 803-3 & 832-2 Reservoirs Coating Advanced Industrial Services $876,900 $946,900 $0 0.0%$876,900 $823,250 -7.4%93.9%November 2013 TOTALS:$3,915,580 $4,193,580 $236,028 6.0%$4,333,626 $4,259,976 3.3% *NET CHANGE ORDERS DO NOT INCLUDE ALLOWANCE ITEM CREDITS. IT'S A TRUE CHANGE ORDER PERCENTAGE FOR THE PROJECT. **THIS CHANGE ORDER RATE INCLUDES THE CREDIT FOR UNUSED ALLOWANCES Consultant Contract Status 9 Consultant CIP No.Project Title Original Contract Amount Total Change Orders Revised Contract Amount Approved Payment To Date % Change Orders % Project Complete Date of Signed Contract End Date of Contract PLANNING ARCADIS U.S., INC.Varies WASTEWATER MANAGEMENT PLAN FY12-13 $ 349,979.36 $ - $ 349,979.36 $ 349,971.86 0.0%100.0%8/3/2011 COMPLETE 12/31/2013 BROWN AND CALDWELL P1210 IWRP 2013 UPDATE $ 5,000.00 $ - $ 5,000.00 $ - 0.0%0.0%9/17/2013 12/31/2013 NARASIMHAN CONSULTING Varies HYDRAULIC MODELING SERVICES $ 175,000.00 $ - $ 175,000.00 $ 85,633.50 0.0%48.9%5/2/2011 6/30/2014 DESIGN AECOM P2451 OTAY MESA CONVEYANCE AND DISINFECTION SYSTEM (DESIGN ENGINEER) $ 3,910,297.00 $ - $ 3,910,297.00 $ 421,284.83 0.0%10.8%1/3/2011 6/30/2016 AEGIS ENGINEERING MGMT INC VARIES AS-NEEDED DESIGN SERVICES FY13-14 $ 300,000.00 $ - $ 300,000.00 $ 118,419.40 0.0%39.5%11/1/2012 6/30/2014 ARCADIS U.S., INC. P2434, P2511 VALUE ENGINEERING AND CONSTRUCTIBILITY REVIEW $ 153,628.00 $ - $ 153,628.00 $ 65,308.73 0.0%42.5%1/18/2012 6/30/2014 ATKINS Varies AS-NEEDED ENGINEERING DESIGN SERVICES FY12-13 $ 175,000.00 $ - $ 175,000.00 $ 143,646.06 0.0%82.1%10/25/2011 6/30/2015 BSE ENGINEERING INC Varies AS-NEEDED ELECTRICAL SERVICES $ 100,000.00 $ - $ 100,000.00 $ - 0.0%0.0%6/1/2012 6/30/2014 BUSTAMANTE & ASSOCIATES P2451 OTAY MESA CONVEYANCE AND DISINFECTION SYSTEM (BINATIONAL WATER AND RELATED ISSUES) $ 39,500.00 $ - $ 39,500.00 $ 7,000.00 0.0%17.7%1/1/2013 10/31/2013 DARNELL & ASSOCIATES Varies AS-NEEDED TRAFFIC ENGINEERING SERVICES $ 125,000.00 $ - $ 125,000.00 $ - 0.0%0.0%6/12/2012 6/30/2014 HECTOR MARES-COSSIO P2451 OTAY MESA CONVEYANCE AND DISINFECTION SYSTEM (BINATIONAL WATER AND RELATED ISSUES) $ 120,000.00 $ - $ 120,000.00 $ 21,600.00 0.0%18.0%4/1/2013 3/31/2015 LEE & RO INC P2511 OTAY INTERCONNECT PIPELINE $ 2,769,119.00 $ - $ 2,769,119.00 $1,024,361.46 0.0%37.0%11/4/2010 12/31/2015 MICHAEL D.KEAGY REAL ESTATE VARIES AS-NEEDED APPRAISAL SERVICES FY13-14 $ 45,000.00 $ - $ 45,000.00 $ - 0.0%0.0%9/5/2012 6/30/2014 SILVA SILVA CONSULTING P2451 OTAY MESA CONVEYANCE AND DISINFECTION SYSTEM (BINATIONAL WATER AND RELATED ISSUES) $ 104,000.00 $ - $ 104,000.00 $ 72,000.00 0.0%69.2%5/1/2012 6/30/2014 SOUTHERN CALIFORNIA SOIL VARIES GEOTECHNICAL SERVICES FY13-15 $ 175,000.00 $ - $ 175,000.00 $ 2,234.00 0.0%1.3%12/10/2012 6/30/2015 TETRA TECH, INC P2434 RANCHO DEL REY WELL - PHASE 2 $ 724,493.50 $ 23,749.00 $ 748,242.50 $ 404,445.17 3.3%54.1%4/21/2011 12/31/2014 V & A CONSULTING Varies VALUE ENGINEERING AND CONSTRUCTIBILITY REVIEW $ 392,729.00 $ - $ 392,729.00 $ 298,601.09 0.0%76.0%6/23/2011 COMPLETE 9/30/2013 Consultant Contract Status 10 Consultant CIP No.Project Title Original Contract Amount Total Change Orders Revised Contract Amount Approved Payment To Date % Change Orders % Project Complete Date of Signed Contract End Date of Contract CONSTRUCTION SERVICES AIRX UTILITY SURVEYORS Varies AS-NEEDED SURVEYING SERVICES FY 14-15 $ 175,000.00 $ - $ 175,000.00 $ - 0.0%0.0%9/18/2013 6/30/2015 ALTA LAND SURVEYING, INC.Varies AS-NEEDED SURVEYING SERVICES $ 175,000.00 $ - $ 175,000.00 $ 170,358.75 0.0%97.3%8/15/2011 6/30/2014 ALYSON CONSULTING Varies CONSTRUCTION MGMT/INSPECTION FY 13-15 $ 350,000.00 $ - $ 350,000.00 $ 109,540.00 0.0%31.3%10/24/2012 6/30/2015 CLARKSON LAB & SUPPLLY Varies AS-NEEDED BACTERIOLOGICAL TESTING FY 14 $ 15,000.00 $ 15,000.00 $ 7,278.00 0.0%48.5%7/1/2013 6/30/2014 HARPER & ASSOCIATES P2493 COATING INSPECTION SERVICES ON THE 624-2 & 458-2 RESERVOIR $ 75,160.00 $ 75,160.00 $ - 0.0%0.0%8/27/2013 7/3/2014 ENVIRONMENTAL ICF INTERNATIONAL (aka JONES & STOKES ASSOCIATES)Varies AS-NEEDED ENVIRONMENTAL CONSULTING SERVICES $ 375,000.00 $ - $ 375,000.00 $ 275,151.57 0.0%73.4%9/9/2010 6/30/2014 MERKEL & ASSOCIATES Varies SAN MIGUEL HABITAT MANAGEMENT AREA AND CIP-ASSOCIATED MITIGATION PROJECTS $ 359,079.00 $ - $ 359,079.00 $ 212,409.43 0.0%59.2%12/14/2011 12/31/2014 RECON P2494 PREPARATION OF THE SUBAREA PLAN $ 270,853.00 $ - $ 270,853.00 $ 190,221.86 0.0%70.2%3/28/2008 6/30/2015 WATER RESOURCES MICHAEL R. WELCH P2481 ENGINEERING PLANNING SVCS. $ 40,000.00 $ - $ 40,000.00 $ 30,375.00 0.0%75.9%3/25/2009 6/30/2015 PUBLIC SERVICES AEGIS ENGINEERING MANAGEMENT Varies RECYCLED WATER PLAN CHECKING, RETROFIT, AND INSPECTION SERVICES FOR DEVELOPER PROJECTS $ 300,000.00 $ - $ 300,000.00 $ 293,016.68 0.0%97.7%1/20/2010 12/30/2013 AEGIS ENGINEERING MANAGEMENT Varies RECYCLED WATER PLAN CHECKING, RETROFIT, AND INSPECTION SERVICES FOR DEVELOPER PROJECTS $ 300,000.00 $ - $ 300,000.00 $ 306,707.34 0.0%102.2%11/24/2010 12/30/2013 AEGIS ENGINEERING MANAGEMENT Varies AS-NEEDED DEVELOPER PROJECTS FY 14-15 $ 350,000.00 $ - $ 350,000.00 $ 6,164.50 0.0%1.8%8/20/2013 6/30/2015 TOTALS: $12,448,837.86 $ 23,749.00 $12,122,586.86 $4,615,729.23 0.2% QUESTIONS?QUESTIONS? 11