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HomeMy WebLinkAbout11-15-16 FA&C Committee Packet 1 OTAY WATER DISTRICT FINANCE, ADMINISTRATION AND COMMUNICATIONS COMMITTEE MEETING and SPECIAL MEETING OF THE BOARD OF DIRECTORS 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA BOARDROOM TUESDAY November 15, 2016 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. APPROVE THE PURCHASE OF A PERMANENT UTILITY EASEMENT AT THE RANCHO SAN DIEGO VILLAGE SHOPPING CENTER FROM REGENCY CENTERS FOR THE CAMPO ROAD SEWER REPLACEMENT PROJECT IN AN AMOUNT NOT-TO-EXCEED $125,000 (BEPPLER) [5 minutes] 4. APPROVE THE ISSUANCE OF A PURCHASE ORDER TO VOLVO CONSTRUCTION EQUIPMENT IN THE AMOUNT NOT-TO-EXCEED $269,764 FOR THE PURCHASE OF TWO (2) REPLACEMENT PORTABLE EMERGENCY GENSETS (MARTINEZ) [5 minutes] 5. APPROVE A TWO-YEAR FIXED AGREEMENT, PLUS THREE (3) ONE-YEAR OPTIONS, WITH T&T JANITORIAL, INC. FOR JANITORIAL SERVICES IN AN AMOUNT-NOT-TO-EXCEED $286,800 (PAYNE) [5 minutes] 6. APPROVE THE FIRST AMENDMENT TO THE JOINT POWERS AGENCY WATER CONSERVATION GARDEN OPERATION AGREEMENT, EXTENDING THE EXPIRATION DATE AN ADDITIONAL SIX MONTHS FROM DECEMBER 31, 2016 TO JUNE 30, 2017 (OTERO) [5 minutes] 7. ADJOURNMENT 2 BOARD MEMBERS ATTENDING: Jose Lopez, Chair Mitch Thompson 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 which would require accommodation in order to enable you to par- ticipate 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 November 10, 2016 I posted a copy of the foregoing agenda near the regular meeting place of the Board of Directors of Otay Water District, said time being at least 24 hours in advance of the meeting of the Board of Directors (Government Code Section §54954.2). Executed at Spring Valley, California on November 10, 2016. ______/s/_ Susan Cruz, District Secretary _____ STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: December 7, 2016 SUBMITTED BY: Stephen Beppler Senior Civil Engineer Bob Kennedy Engineering Manager PROJECT: S2024- 001102 DIV. NO. 5 APPROVED BY: Rod Posada, Chief, Engineering German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Authorization to Acquire an Easement at Rancho San Diego Village Shopping Center from Regency Centers for the Campo Road Sewer Replacement GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District Board of Directors (Board) authorize the General Manager to acquire a permanent utility easement at the Rancho San Diego Village Shopping Center from Regency Centers for the Campo Road Sewer Replacement Project in an amount not to exceed $125,000 (See Exhibit A for location of the easement). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board approval authorizing the General Manager to acquire a permanent utility easement at the Rancho San Diego Village Shopping Center from Regency Centers for the Campo Road Sewer Replacement Project (Project) in an amount not to exceed $125,000. ANALYSIS: The District is in the process of replacing a section of sanitary sewer main known as the Campo Road Sewer, identified in the Wastewater Management Plan as being deficient in capacity. Design 2 and Permit phases of the Project are complete, with the Project awaiting easement procurements prior to beginning the bidding phase. A permanent utility easement is required across Assessor Parcel Number 502-150-18 (Rancho San Diego Village), owned by Regency Centers and its subsidiary CA Rancho San Diego Village, LLC (Regency), to construct the replacement sanitary sewer line as designed, which reflect significant road improvements along SR-94 since the original sewer was constructed in 1974. The easement, irregular shaped to conform to the property boundary and existing District easements on the property, is approximately 24 feet in width and 280 feet in length (see Attachment B for full description). The District, through the project designer Rick Engineering, retained the appraisal services of Colliers International, an independent real estate appraiser, to estimate the “Fair Market Value” of the proposed Permanent Utility Easement acquisition, as that value is defined in Section 1263.320 of the California Code of Civil Procedure. An offer was presented to Regency by letter dated June 1, 2016 (Attachment C) for an amount of $72,400. Based upon the appraised value of the property and Regency’s disagreements with it, the District’s General Counsel and Regency’s attorney have determined through negotiation that the amount of $125,000 constitutes just compensation. A revised offer letter (Attachment D) was then sent to Regency on October 31, 2016 for their written acceptance of the offer. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The total budget for CIP S2024, as approved in the FY 2017 budget, is $8,500,000. Total planning and design phase expenditures to date, plus outstanding commitments and forecast, are $ 1,382.860.69. See Attachment E Budget Detail. Forecasted bidding, additional easement acquisition, and construction phase costs are approximately $6,900,000, for a total project expense currently estimated at about $8,300,000. Based on a review of the financial budget, the Project Manager anticipates that the budget for CIP S2024 will be sufficient to support the Project. Finance has determined that, under the current rate model, 50% of the funding will be available from the Betterment Fund and 50% will be available from the Replacement Fund. 3 STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide high quality and reliable water and wastewater services to the customers of the Otay Water District, in a professional, effective, and efficient manner” and the General Manager’s Vision, "A District that is innovative in providing water services at competitive rates, with a reputation for outstanding customer service." LEGAL IMPACT: None. SB/BK/RP:mlc P:\WORKING\CIP S2024 Campo Road Sewer Replacement\Staff Reports\Regency Easement\BD 12-07-16, Staff Report, Campo Rd Sewer Easement Aquisition - Regency (SB-BK).docx Attachments: Attachment A – Committee Action Attachment B – Easement Description Attachment C – Original Offer Letter to Regency Attachment D – Revised Offer Letter to Regency Attachment E – Budget Detail Exhibit A – Location Map ATTACHMENT A SUBJECT/PROJECT: S2024-001102 Authorization to Acquire an Easement at Rancho San Diego Village Shopping Center from Regency Centers for the Campo Road Sewer Replacement COMMITTEE ACTION: The Finance, Administration, and Communications Committee (Committee) reviewed this item at a Committee Meeting held on November 15, 2016. The Committee supported Staff’s recommendation. NOTE: The “Committee Action” is written in anticipation of the Committee moving the item forward for Board approval. This report will be sent to the Board as a Committee approved item, or modified to reflect any discussion or changes as directed from the Committee prior to presentation to the full Board. OWD EASEMENT NO.     RECORDING REQUESTED BY For Recorder's Use AND AFTER RECORDATION MAIL TO:   OTAY WATER DISTRICT 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CA 91978-2004                       APN: 502-150-18 Documentary Transfer Tax: None (Exempt under Rev & Tax Code Section 11922)       GRANT OF EASEMENT OF RIGHT-OF-WAY TO OTAY WATER DISTRICT   For good and valuable consideration, receipt of which is hereby acknowledged, the Undersigned FW CA Rancho San Diego Village, LLC, Delaware Limit Liability Company as Grantor(s) hereby GRANT(S) to OTAY WATER DISTRICT, a municipal water district formed under the Municipal Water District Law of 1911, as amended, situated in the County of San Diego, State of California, as Grantee, a permanent easement of right-of-way of variable feet in width for the purpose of laying underground water and sewer pipelines and laterals, trunk lines, collection lines and laterals, sewer manholes and other underground structures appurtenant to said water or sewer lines, including but not limited to pumps, regulators, and valves within said easement, hereinafter referred to as "said facilities," together with the right to construct, operate, maintain, repair and replace said facilities to the extent it does not unreasonably interfere with Grantor’s use of said land, and the right of ingress and egress for such purposes. Said easement is described and/or depicted as follows: (See Exhibit(s) “A” and “B” attached hereto and made a part hereof)   Grantor reserves the right to use said land at Grantor's own risk for any and all purposes not unreasonably conflicting, interfering or inconsistent with Grantee's use of, and access to, said facilities. Grantor waives any right under Civil Code section 845, and any right to compel Grantee to grade, surface or otherwise improve or maintain said easement area as a roadway.   To the extent it will cause damage to or unreasonably threaten the safety of any of said facilities of Grantee placed within the easement, Grantor shall not increase or decrease or permit to be increased or decreased the ground elevations of said easement existing at the time this document is executed, nor construct or permit to be constructed any permanent building, structures, improvements or other encroachment upon said easement. OWD EASEMENT NO.     Grantee may remove from the easement any building, structure, improvement or other encroachments thereon unreasonably conflicting, interfering or inconsistent with its use for the purposes hereby granted. Grantee shall have the right to install its own gates and locks in any fence, barrier or other enclosure which now crosses or may hereafter cross said easement.   Grantee agrees on its own behalf and on behalf of its successors in interest that it will indemnify and hold harmless Grantor for any damages to the property which result from maintenance and repair operations by the Otay Water District of its pipeline within the easement.   Grantor may use said land as a driveway and to the extent of such use may surface or pave the area, subject to the restrictions as to changes in existing ground elevations and indemnifications set forth above.   Grantor may, at Grantor's expense, and subject to Grantee's prior written consent, relocate the above mentioned facilities in the event such conflict with future development of said property, provided that Grantor does not cause discontinuance of service to any area, and provided, further, that Grantee receives, without expenses to Grantee, an easement comparable to this easement for said relocated facilities. Grantee shall never be required to relocate or alter in any way the facilities installed pursuant to this grant of easement, or to bear any cost in connection therewith as a result of changes in the location of any said facilities.   Grantee shall have the right to transfer and assign all or a portion of this easement to its successor in interest, or to any other political subdivision or public utility for use of the above stated purpose.       Date:   Grantor(s):   Print Name/Corporation/Entity   [Each signature of Grantor must be acknowledged in the form attached hereto]         DISTRICT CERTIFICATE OF ACCEPTANCE   This is to certify that the interest in real property conveyed by the Grant of Easement of Right of Way to Otay Water District dated _, from to OTAY WATER DISTRICT, a municipal water district, is hereby accepted by order of the Board of Directors pursuant to the authority conferred by Resolution No. 1829, adopted on February 23, 1981, and the grantee consents to recordation thereof by its duly authorized officer.   Dated: By: Susan Cruz, District Secretary Otay Water District             CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT       GRANTOR’S SIGNATURE ACKNOWLEDGEMENT       A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.       State of California ) ) ss County of )     On before me, DATE NAME, TITLE OF OFFICER - E.G., "JANE DOE, NOTARY PUBLIC"   personally appeared     NAME(S) OF SIGNER(S)   who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) , or the entity upon behalf of which the person(s) acted, executed the instrument.   I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.   WITNESS my hand and official seal.         Signature of Notary Public (Notary Seal) J-17224 J-17224 EXHIBIT'A'' SEWER EASEMENT Being a portion of Parcel 7 of Parcel Map No. 91 13 in the County of San Diego, State of California, filed in the Office of the County Recorder of San Diego County August 30, 1979 said portion being more particularly described as follows: Beginning at the southwest corner of said Parcel 7; thence along the South line of said Parcel 7 North 85"49'50' East 6.44 feet to the TRUE POINT OF BEGINNING: thence leaving said Southerly line North 04"09'41" West 23.67 feet to the Westerly line of said Parcel 7; thence along said Westerly line North 1 1"03'16" East 1 .51 feet; thence leaving said westerly line North 85'50'19" East 257.57 feet to the southwesterly line of that Sewer Easement Granted to Otay Water District Recorded April 29, 1976 as Document No. 128932: thence along said southwesterly line South 54"13'04" East 48.06 feet; thence leaving said southwesterly line South 86"39'50" West 133.03 feet to a point on the southerly line of said Parcel 7, said point being the beginning of a non-tangent 1530.00 foot radius curve concave Southerly to which a radial line bears North 00o06'44'West; thence along said southerly line Westerly along the arc of said curve through a central angle of 04'03'26" a distance of 108.34 feet; thence continuing along said southerly line South 85'49'50" West 53.55 feet to the TRUE POINT OF BEGINNING. Containing 0.175 acres, more or less /e,¿o/1 A. McMi , L.S. 6242 JblK:lfilesl 17 224llegall 17224 -lgl_sewer ease for pcl 7 No.6187 LAND ** OF C 1of1 SCALE 1" = 50' DIRECTION LENGTH CURVE TABLE NAME DELÏA RAD I US ARC c1 4'O3',26" 1 530.00 1 09.34 PAR@EL 8 SÞ =m5 L I NE TABLE NAME -N-L1 L2 L3 N 04'09'41 " W N 11'03','16" Es 54'13',04" E 23.61 1 .51 48.06 OWD /2ss32 PAR@EL V P.M, g flfl9 SEWER ESMT T0 1lvMD REyD 2/8/1978 AS FILE 78{5275/ c) Eo PARGI t-\ 50'1g',E 257.57',\T.P,O.B,N)a /V85' 53.59 N8î4E5U',E 6'44 CAMPO RD P.O.B. SW COR, PCL 7 s863E5U'W R4530'L.254.13' ESMT PER MAP N0.8327 (STATE ROUTE 94) oAMPO RD (STATE CI85 "% SEWER EASEMENT ACQUIRED, 0,.175 ACRES EXHIBIT'B' 9.2o.Þtl LAND ** OF c CALLE VERDE SITE VIA MERCADO Jo oo o BazELo _fi È" g SEWER EASEMENT PORTIONS OF PARCEL 7 OF PARCEL MAP NO. 91 13 COUNTY OF SAN DIEGO, STATE OF CALIFORNIA dîo o ú;co Þ rp PØ +tcc ËFoo oo oo )a q on o ı@ I to Eã- J-11224 June 1,2016 .dedicated to Community SeMice 2554 SWEETWATER SPRINGS BOULEVARD,SPRING VALLEY,CALIFORNIA91978-2004 TELEPHONE:670-2222,AREACODE 619 WWW.Otaywater.gov Project No.:S2024-001102 FW CA Rancho San Diego Village,LLC,A Delaware Limited Liability Company c/o John Mehigan ' 915Wilshire Blvd.,#2200 Los Angeles,CA 90017 SUBJECT:Permanent Utility Easement - APN #502-150-18; Otay Water District -Campo Road Sewer Replacement Project; Statutory Offer Pursuant to Government Code Section 7267.2(a) Dear Property Owner: The Otay Water District (District)is in the process of relocating District Sewer facilities along Campo Road (SR 94) ("Campo Road Sewer Replacement Project").In connection with the Campo Road Sewer Replacement Project, the District hereby offers to acquire a Permanent Utility Easement across a portion of your real property located at 3681 Avocado Blvd.and identified by Assessor Parcel Number 502-150-18 (the "Real Property").Itis our understanding that you are currently the onlyowner of record ofthe Real Property.If you are not the owner ofthe Real Property, or ifanyone else owns any portion of, or interest in,the Real Property,please contact us immediately. The District wishes to acquire the Permanent Utility Easement amicably,expeditiously, and by negotiation, pending the approval by the Board of Directors ("Board")of the District.To accomplish this, the District is required to (i)establish an amount that the District believes to be "just compensation,"(ii)make an offer to the owner(s) of record to acquire the Permanent Utility Easement for the full amount so established, and (iii) provide the owner(s)with a written statement of,and summaryofthe basis for,the amount established as "justcompensation." The District's offercannot be less than the District's appraisal ofthe value ofthe propertyinterest to be acquired,(see California Government Code Section 7267.2(a)). The District retained the appraisal services of Colliers International, an independent real estate appraiser, to estimate the "Fair Market Value" of the proposed Permanent Utility Easement acquisition, as that value is defined inSection 1263.320 ofthe California Code of Civil Procedure.The appraiser's Fair MarketValue Estimate is shown on the enclosed "Summary ofthe Basis for the Amount Establishedas Just Compensation"and "Summary FW CA Rancho San Diego Village,LLC Permanent Utility Easement - APN #502-150-18 June 1,2016 Page 2 of 3. of Salient Facts and Conclusions."Based upon this independent appraisal,the District has determined that the amount of $72,400.00 constitutes Just Compensation for the proposed purchase of a Permanent Utility Easement which is described and depicted in the enclosed legal description and plat. Ifyou are agreeable with the above offer, an escrow will be opened by or at the direction of the District.Escrow will facilitate the conveyance of the Permanent Utility Easement to the District free and clear of any and all liens,encumbrances,and options or claims for leasehold interests for a total consideration of $72,400.00.The acquisition of the Permanent Utility Easement and access rights is subject to District reviewing the escrow Preliminary Title Report, if any,and accepting the conveyance document.The District will pay all eligible incidental expenses associated with the escrow closing,including any recording fees. Please note that the proceeds related to the purchase of the Permanent Utility Easement may be subject to payment demands for county taxes,assessment liens,federal and state tax liens,creditor judgements,and beneficiaries of trust deeds.Please note further that ifa condemnation action is approved and filed,the District may continue to discuss a negotiated purchase based upon the offer set forth herein. This offer will be deemed revoked,if it has not been accepted before the earlier of (i)the date on which the Board of Directors of the District holds a public hearing on a possible condemnation action,ifany, or (ii)within 45 days of the date of this letter. If the above offer meets with your approval,please sign this letter on Page 3 under the heading "OfferAccepted" and return it to my attention. A duplicate copy of this letter is enclosed for your records.Please review all the enclosed documents prior to making a decision.If you accept our offer,please be ready to execute and deliver the Permanent Utility Easement enclosed with this offer. If you have any questions regarding the project or the terms of the Permanent Utility Easement acquisition proposal,please contact the District's Project Manager,Stephen Beppler, P.E.,Senior Civil Engineer, at (619)670-2209 or by e-mail at steve.beppler@otaywater.gov. Sincerely, otayaNax lark Watfon General Manager MW:jf FW CA Rancho San Diego Village,LLC Permanent Utility Easement - APN #502-150-18 June 1,2016 Page 3 of 3. Enclosures: Summary of the Basis for the Amount Established as Just Compensation Appraisal Summary Statement Proposed Permanent Utility Easement with Exhibit A & B- Legal and Plat The Public Acquisition Process Copy of this Offer Letter OFFER ACCEPTED:FW CA Rancho San Diego Village,LLC Dated: By: Signature Print P:\WORKING\CIP S2024CampoRoadSewerReplacement\Easements\Proposed Easements\Offers\FW CA easementoffer20160518.docx Summary of the Basis for the Amount Established as Just Compensation (Pursuant to Section 1255.010 of the California Code of Civil Procedure) (Accompanying the offer made pursuant to Government Code Section 7267.2) The following is a summary of the basis for the amount established as Just Compensation for the Permanent Utility Easement the District desires to acquire on a portion of the Real Property described in the Offer to which this Summary is attached. The appraisal was made in accordance with accepted appraisal principles, consistent with California valuation law. An identification of the parcel, the project for which the Permanent Utility Easement is required, the required property rights, and the valuation analysis which was the basis for the valuation conclusion is as follows: PROJECT: Otay Water District Campo Road Sewer Replacement Project ASSESSOR PARCEL NUMBER: 502-150-18 SUBJECT PROPERTY LOCATION: 3681 Avocado Blvd, La Mesa, CA 91941 OWNER OF RECORD: FW CA Rancho San Diego Village, LLC, a Delaware limited liability company PO BOX 790830, SAN ANTONIO, TX 78279 Telephone: 213-553-2273 (John Mehigan) INTEREST BEING VALUED: Permanent Utility Easement AREA AFFECTED: Approximately 7,611 square feet, or 0.175 acres DATE OF VALUE: February 12, 2016 SUMMARY OF VALUE CONCLUSIONS AND DESCRIPTION OF THE LARGER PARCEL: Refer to enclosed copy of Appraisal Summary Statement PROPOSED PROJECT: The purpose of the Otay Water District Campo Road Sewer Replacement Project is for the District to replace its facilities that are no longer meeting the District’s needs. The District anticipates using the Permanent Utility Easement as a means to access the trench for the pipe to be realigned. After the realignment of the pipe is accomplished, the District will return the easement to its condition prior to the access. Summary of the Basis for the Amount APN 502-150-18 Established as Just Compensation Page 2 of 3. DESCRIPTION OF THE PERMANENT UTILITY EASEMENT USE: The Permanent Utility Easement has an area of approximately 7,611 square feet. The District will construct a 15” sewer within the Easement. Upon completion, the District will return the Easement to its condition prior to the access, and, thereafter, will access the sewer through manholes. REMAINDER OF PARCEL: The Permanent Utility Easement is not anticipated to have significant impact on the Real Property. VALUATION OF THE LARGER PARCEL Definition of Fair Market Value Fair Market Value is defined under California law as the highest price on the date of valuation that would be agreed by a seller willing to sell but under no particular or urgent necessity to sell and a buyer being ready, willing and able to buy but under no particular necessity for so doing, each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available. Definition of Highest and Best Use Highest and best use is defined as the reasonably probable use of land that is legally permissible, physically possible, financially feasible, and maximally productive resulting in the highest value. The Highest and Best Use Analysis is used in the appraisal process to identify comparable properties and, where applicable, to determine whether the existing improvements should be retained, renovated, or demolished. The results of the Highest and Best Use Analysis are discussed below. HIGHEST AND BEST USE The Highest and Best Use for the Real Property was determined to be industrial building, as zoned. METHODOLOGY The Sales Comparison Approach was used to estimate the fair market value of the Real Property and the Permanent Utility Easement. Summary of the Basis for the Amount APN 502-150-18 Established as Just Compensation Page 3 of 3. SALES COMPARISON APPROACH The following is a summary of the principal sales considered applicable to the valuation of the larger parcel: SUMMARY OF IMPROVED TRANSACTIONS No. Location Sale Date Size in AC Price Price/SF 1 5900 Severin Dr., La Mesa Pending 2/4/2016 0.46 $400,000 $19.96 2 1338 E. Main St., El Cajon 8/28/2014 1.31 $1,020,000 $17.87 3 714 Grand Ave., Spring Valley 4/3/2015 0.27 $230,000 $19.56 4 230 El Cajon, El Cajon 7/21/2015 0.80 $500,000 $14.35 5 1164 Coushatta, Spring Valley 10/12/2015 1.42 $885,000 $14.31 Broker opinion of value varies from $15 to $20 per square foot depending on size and location of the parcel. The property at Avocado Blvd, consisting of 3.42 acres, has an estimated value of $19 per square foot. VALUATION OF PERMANENT UTILITY EASEMENT The compensation for the Permanent Utility Easement which encumbers 7,611 square feet was based on the fee simple interest of the property, and is a percentage of the fee simple value based on the fact that it is shared property with some rights retained by the current property owner. The fee simple value of the land was established at $19 per square foot. The Permanent Utility Easement takes 50% of the rights to the land. Therefore, the value of the part taken is $72,305 ($19.00 per square foot x 50% shared rights x 7,611 square feet). VALUE OF THE REMAINDER The District will return the Real Property which is subject to the Permanent Utility Easement to its prior condition following the proposed relocation of the District’s facilities. No significant adverse impact is anticipated from the Project. The Permanent Utility Easement will not change the zoning or other land use regulations applicable to the Real Property. Based on the investigation, there are no damages occasioned by the Project to the remainder of the Real Property. BENEFIT The proposed sewer line continues to be underground and will be available through manholes for use on the Real Property. There is no market evidence suggesting that the Permanent Utility Easement will be a benefit to the Real Property. Therefore, there are no demonstrable benefits to the Real Property directly resulting from the Project. OTAY ...Oedicated to Cormmuniig Senrice 2554 SWEETWATER SPRINGS BOULEVARD, SPRING VALLEY CALIFORNIA 91 978-2004 TELEPHONE:670-2222, ABEACODE 619 vvwwotaywater.gov October 31,2016 Project No.: 52024-001102 FW CA Rancho San Diego Village, LLC, A Delaware Limited Liability Company c/o K. Erik Friess Allen Matkins Leck Gamble Mallory & Natsis LLP 1900 Main Street, 5th Floor lrvine, C492614-7321 SUBJECT:Permanent Utility Easement - APN # 502-150-18; Otay Water District - Campo Road Sewer Replacement Project; Statutory Offer Pursuant to Government Code Section 7267.2(a) Dear Property Owner: The Otay Water District (District) hereby presents a revised statutory offer to acquire a Permanent Utility Easement across a portion of your real property located at 3681 Avocado Blvd. and identified by Assessor Parcel Number 502-150-18 (the "Real Property") upon which the District initially offered in a letter dated June 1, 2016. The easement is related to the District's relocation of sanitary sewer facilities along Campo Road (SR 94) ("Campo Road Sewer Replacement Project"). Based upon negotiations between the District's legal counsel and your legal representative, Mr. K. Erik Friess, and considering the appraised value and your disagreements with it, an amount of $125,000.00 has been deemed as Just Compensation for the proposed purchase of the Permanent Utility Easement, which is described and depicted in the enclosed legal description and plat. The description has been revised from the original version provided in the June 1,2016 offer to reflect agreed upon changes. Upon acceptance of this offer, an escrow will be opened by or at the direction of the District. Escrow will facilitate the conveyance of the Permanent Utility Easement to the District free and clear of any and all liens, encumbrances, and options or claims for leasehold interests for a total consideration of $125,000.00. The acquisition of the Permanent Utility Easement and access rights is subject to District reviewing the escrow Preliminary Title Report, if any, and accepting the conveyance document. The District will pay all eligible incidental expenses associated with the escrow closing, including any recording fees. FW CA Rancho San Diego Village, LLC, A Delaware Limited Liability Company c/o K. Erik Friess Permanent Utility Easement - APN # 502-150-18 October 31,2016 Page 2 of 2. Please note that the proceeds related to the purchase of the Permanent Utility Easement may be subject to payment demands for county taxes, assessment liens, federal and state tax liens, creditor judgements, and beneficiaries of trust deeds. This offer will be deemed revoked, if it has not been accepted before the earlier of (i) the date on which the Board of Directors of the District holds a public hearing on a possible condemnation action, if any, or (ii) within 30 days of the date of this letter. Please sign this letter below under the heading "Offer Accepted" and return it to my attention at your earliest convenience. A duplicate copy of this letter is enclosed for your records. Please also be prepared to execute and deliver the Permanent Utility Easement enclosed with this offer. Sincerely, OTAY E ISTRICT ark Watton General Manager MW:mlc Enclosures: Proposed Permanent Utility Easement with Exhib¡t A & B - Legal and Plat Copy of this Offer Letter OFFER ACGEPTED: FW CA Rancho San Diego Village, LLC Dated Signature Print P:\WORKING\ClP 52024 Campo Road Sewer Replacement\Easements\Proposed Easements\Ofiers\Revised Easement Offer - Regency - RSD Village 20161031.Docx By: ATTACHMENT E – Budget Detail Project Budget Detail S2024‐Campo Road Sewer Main Replacement   Level Title1 Committed Expenditures Outstanding  Commitment  Projected  Final Cost  Vendor Planning Consultant  Contracts  $20,020.00 $20,020.00 $0.00 $20,020.00  AEGIS ENGINEERING  MGMT INC  Regulatory Agency  Fees  $132.00 $132.00 $0.00 $132.00  US BANK  $2,260.00 $2,260.00 $0.00 $2,260.00  COUNTY OF SAN  DIEGO  Service Contracts $161.70 $161.70 $0.00 $161.70  SAN DIEGO DAILY  TRANSCRIPT  $42.50 $42.50 $0.00 $42.50  EAST COUNTY  GAZETTE  Standard Salaries $138,106.13 $138,106.13 $0.00 $138,106.13   Total $160,722.33 $160,722.33 $0.00 $160,722.33   Design Consultant  Contracts  $9,315.00 $9,315.00 $0.00 $9,315.00  WATER SYSTEMS  CONSULTING INC  $763,244.35 $687,231.45 $76,012.90 $763,244.35  RICK ENGINEERING  COMPANY  $3,500.00 $3,500.00 $0.00 $3,500.00  MICHAEL D KEAGY  REAL ESTATE  $3,507.75 $3,507.75 $0.00 $3,507.75  NINYO & MOORE  GEOTECHNICAL  Professional Legal  Fees  $182.32 $182.32 $0.00 $182.32  STUTZ ARTIANO  SHINOFF  $1,910.00 $1,910.00 $0.00 $1,910.00  ARTIANO SHINOFF  Regulatory Agency  Fees  $956.00 $956.00 $0.00 $956.00  COUNTY OF SAN  DIEGO  Service Contracts $158.20 $158.20 $0.00 $158.20  SAN DIEGO DAILY  TRANSCRIPT  Easement  Acquisition  $125,000.00 $0.00 $125,000.00 $125,000.00 REGENCY CENTERS  Standard Salaries $241,409.46 $241,409.46 $0.00 $241,409.46   Total $1,149,183.08 $948,170.18 $201,012.90 $1,149,183.08   Construction Consultant  Contracts  $42,460.65 $0.00 $42,460.65 $42,460.65  RICK ENGINEERING  COMPANY  $12,258.00 $12,258.00 $0.00 $12,258.00  NINYO & MOORE  GEOTECHNICAL  $17,400.00 $17,400.00 $0.00 $17,400.00  ALYSON CONSULTING  Standard Salaries $836.63 $836.63 $0.00 $836.63   Total $72,955.28 $30,494.63 $42,460.65 $72,955.28   Budget $8,500,000.00   Total $1,382,860.69 $1,139,387.14 $243,473.55 $1,382,860.69   SUBJECT/PROJECT: S2024-001102 Authorization to Acquire an Easement at Rancho San Diego Village Shopping Center from Regency Centers for the Campo Road Sewer Replacement SKYLINEWESLEYANCHURCH ?Ë AV O C A D O B L V D FURY LANE JAMA C H A B L V D JAMAC H A R D CUYAMACACOLLEGE C A M P O R D C A M P O R D ?Ë OWDREGULATORYSITE Ralph W. ChapmanWater ReclamationFacility SINGER L N RANCHOSAN DIEGOVILLAGE RANCHOSAN DIEGOTOWNECENTER EASEMENTACQUISITION VICINITY MAP PROJECT SITE NTS DIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ?ò Aä;&s ?p ?Ë !\ OTAY WATER DISTRICTCAMPO ROAD SEWER MAIN REPLACEMENTLOCATION MAP EXHIBIT A CIP S2024 0 1,000500 Feet F F P: \ W O R K I N G \ C I P S 2 0 2 4 C a m p o R o a d S e w 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 , L o c a t i o n M a p , R S D V i l l a g e , O c t 2 0 1 6 . m x d Legend Proposed 15-Inch Sewer Main Alignment Existing 10-inch Gravity Sewer to be Replaced Existing Sewer Mains STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: December 7, 2016 SUBMITTED BY: Jose Martinez, Asst. Chief of Water Operations PROJECT: DIV. NO. All APPROVED BY: Pedro Porras, Chief Water Operations German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Approval to Purchase two (2) Replacement Portable Emergency Gensets GENERAL MANAGER’S RECOMMENDATION: That the Board authorize the General Manager to issue a purchase order to Volvo Construction Equipment in the amount not to exceed $269,764 for the purchase of two (2) replacement portable emergency gensets. COMMITTEE ACTION: See Attachment A. PURPOSE: To obtain Board authorization to purchase two (2) replacement portable emergency gensets. ANALYSIS: Included in the approved FY 2017 budget, as Item 2 under Capital Purchases, are two (2) replacement portable emergency gensets. The two gensets are a replacement for existing gensets, Unit No. 736 and Unit No. 2143. The existing gensets were manufactured in 1977 (Unit No. 736) and 1986 (Unit No. 2143) and will be 40 and 31 years old, respectively, at the time of replacement. These gensets are currently classified as TIER 0 generator emission levels which indicate they were permitted prior to the State mandated emission limits on portable gensets. In order to comply with State regulatory mandates the gensets must be removed from service and replaced with gensets that are certified to the current emissions levels of the State of California. The new portable gensets will be mounted on trailers with enclosures similar to the existing gensets. The two new gensets will be in compliance with the State TIER 4 emission standards. The specified replacement portable emergency gensets are designed to operate as a backup power source for the District’s various critical facilities, including but not limited to: pump stations, hydro pneumatic stations, lift stations and the emergency operations center (EOC). The replacement gensets support the District’s Strategic Performance Objectives 1.1.2.3 and 4.1.1.9 and Measure 5.3.519 associated with emergency preparedness. As a reminder, Performance Measure 5.3.519 (Emergency Facility Power Testing) is a readiness indicator of the District’s facilities to perform as intended in the event of an emergency. Currently, Operations staff conducts annual testing of the District’s emergency gensets, which include but are not limited to the following:  Simulation of an actual loss of utility power  Observation of proper start up, operation and shutdown of the generator and associated Automatic Transfer Switch (ATS)  Ability to monitor and operate the facility locally and remotely via the District’s SCADA system  Use of a “Load Bank” which places actual power demands on the gensets to evaluate their performance (temperature, pressure, power output, etc.) when operating near rated capacities  Additionally, exercising engines near their capacities is also part of the recommended maintenance for the gensets This testing is part of the ongoing efforts performed by staff to help ensure the District’s ability to supply water in the event of an emergency. Based on system operation evaluations of workflow by the water systems supervision and management, it is recommended that two (2) new portable emergency gensets be purchased and the two older gensets be declared surplus. In accordance with District policy, bids were solicited for the portable gensets. Three (3) bids were received. Prices received include all applicable fees, taxes, delivery, testing and training. Dealer Bid Price Volvo Construction Equipment $269,764 Cummins Pacific $277,796 Hawthorne Power Systems $300,092 FISCAL IMPACT: Joe Beachem, Chief Financial Officer Projected purchase budget for the two (2) portable gensets is $300,000 based on preliminary research. The purchase of the gensets will cost $269,764, which will be charged against the APCD Retrofits and Replacements CIP P2366. The total cost in this account will not exceed budgeted funding. Based on staff’s evaluation, the CIP P2366 budget is sufficient to complete this purchase. Total budget for FY17 is $820,000, of which $520,000 has been previouisly allocated and staff is now requesting to use the remaining $300,000. The Finance Department has determined that 100% of the funds are available in the replacement fund. Expenditure Summary: CIP 2366 FY17 APCD Retrofits and Replacements Budget: $820,000 Equipment Purchased: Two (2) portable pumps $326,160.00 Proposed Replacement: Two (2) portable gensets $269,764.00 Total, Projected Expenditures of Equipment Replacements FY17, CIP P2366 Budget: $224,076 STRATEGIC GOAL: Operate the system to meet demand twenty-four hours a day, seven days a week. LEGAL IMPACT: None. General Manager Attachment A, Committee Action ATTACHMENT A SUBJECT/PROJECT: Approval to Purchase two (2) Replacement Portable Emergency Gensets COMMITTEE ACTION: The Finance, Administration and Communications Committee reviewed this item at a meeting held on November 15, 2016, and the following comments were made: Note: The ‘‘Committee Action’’ is written in anticipation of the Committee moving the item forward for Board approval. This report will be sent to the Board as a committee approved item, or modified to reflect any discussion or changes as directed from the committee prior to presentation to the full board. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: December 7, 2016 PROJECT: Various DIV. NO. ALL SUBMITTED BY: Kent Payne Purchasing and Facilities Manager APPROVED BY: Adolfo Segura, Chief, Administrative & IT Services German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: AUTHORIZE A TWO-YEAR FIXED AGREEMENT, PLUS THREE (3) ONE-YEAR OPTIONS, WITH T&T JANITORIAL, INC., FOR JANITORIAL SERVICES AT A NOT-TO-EXCEED TOTAL AMOUNT OF $286,800 GENERAL MANAGER’S RECOMMENDATION: That the Board authorize a two-year fixed agreement, plus three (3) one-year options, with T&T Janitorial, Inc. of San Diego, CA (T&T), for janitorial services at the Administration, Operations, Warehouse and Treatment Plant buildings, plus five remote facility restrooms at a not-to-exceed total amount of $286,800. Monthly and annual fees, which represent an 11% reduction from the current contract, are as follows: Calendar Year Monthly Fee Annual Fee Current Contract $5,370.00 $64,440 T&T Janitorial, Inc. 2017 $4,780.00 $57,360 2018 $4,780.00 $57,360 2019 - Option 1 $4,780.00 $57,360 2020 - Option 2 $4,780.00 $57,360 2021 - Option 3 $4,780.00 $57,360 Contract Total $286,800 COMMITTEE ACTION: See “Attachment A”. 2 PURPOSE: To obtain authorization for the General Manager to enter into a two- year fixed agreement, plus three (3) one-year options, with T&T for janitorial services at a not-to-exceed total amount of $286,800. ANALYSIS: The District utilizes a multi-year contract for janitorial services at its main facilities and five remote sites. A scope of work matrix is provided (“Attachment B”). Staff issued a Request-for-Quotation through its online solicitation portal, BidSync. Forty-three (43) firms and organizations viewed the solicitation; fourteen (14) downloaded the bid packet; and, eleven (11) firms attended a mandatory pre-proposal meeting and site walk held at the main campus and Treatment Plant. The District received nine (9) quotes; one of which was non-responsive and four exceeded the maximum acceptable fee and were not evaluated. The remaining four (4) were evaluated by a review panel and scored on firm qualifications, personnel experience, completeness of the submittal, proposed method to perform the work, proposed hours per year, and proposed monthly fee for each year of the contract (“Attachment C”). Firm Five-Year Fee Total Score Prizm Janitorial Service , Inc. $236,166 311 T&T Janitorial, Inc. $286,600 344 Merchants Building Maintenance $351,568 226 Priority Building Services, LLC* $389,892 231 *Incumbent contract holder for Admin, Operations and Warehouse buildings. T&T’s proposal received the highest score and was determined to be the best value for the required scope of work. Staff checked their references which includes the County of San Diego, the City of Coronado, and Southwest Fisheries Science Center – NOAA. All rated T&T as excellent in both job performance and customer service. An internet search revealed no negative ratings or complaints. T&T is a locally owned certified disadvantaged business enterprise incorporated in 2003, with approximately 50 full and part-time employees. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The annual janitorial services operating budget is $63,000, which is sufficient to cover the yearly cost of the contract. 3 STRATEGIC GOAL: Supports the Districts Strategy: Ensure financial health through formalized policies, prudent investing, and efficient operations. LEGAL IMPACT: None. ATTACHMENTS: Attachment A – Committee Action Report Attachment B – Scope of Work Matrix Attachment C – Scoresheet ATTACHMENT A SUBJECT/PROJECT: AUTHORIZE A TWO-YEAR FIXED AGREEMENT, PLUS THREE (3) ONE- YEAR OPTIONS, WITH T&T JANITORIAL, INC., FOR JANITORIAL SERVICES AT A NOT-TO-EXCEED TOTAL AMOUNT OF $286,800 COMMITTEE ACTION: The Finance, Administration, and Communications Committee reviewed this item at a meeting held on November 15, 2016. The Committee supports presentation to the full Board for their consideration. NOTE: The “Committee Action” is written in anticipation of the Committee moving the item forward for Board approval. This report will be sent to the Board as a Committee approved item, or modified to reflect any discussion or changes as directed from the Committee prior to presentation to the full Board. 5 ATTACHMENT B SUBJECT/PROJECT: AUTHORIZE A TWO-YEAR FIXED AGREEMENT, PLUS THREE (3) ONE- YEAR OPTIONS, WITH T&T JANITORIAL, INC., FOR JANITORIAL SERVICES AT A NOT-TO-EXCEED TOTAL AMOUNT OF $286,800 SCOPE OF WORK MATRIX* Administration Operations Central Warehouse Treatment Plant # Task Description D W M Q D W M Q D W M Q Common Areas, Meeting Rooms, Offices & Cubicles 1 Empty all waste containers; clean containers as necessary; replace liners as necessary; and place trash in dumpsters. (Liners to be supplied by owner.) X X X 2 Remove smudges from doors, doorframes & elevator doors. X X X 3 Spot-clean partition glass and door glass. X X X 4 Clean, disinfect and polish drinking fountains. X 5 Disinfect door handles. X X X 6 Return furniture to neat and orderly position. X X X 7 Dust & wipe clean meeting room conference tables. X 8 Sweep non-carpeted traffic patterns including hallways, aisles & copy stations. X X X 9 Sweep debris from exterior of main entrance doors. X 10 Vacuum all carpet traffic patterns including primary hallways, aisles & copy stations. X 11 Mop and disinfect all non-carpeted floors, including main stairwell in Administration Building. For Warehouse location, delivery area only. X X X 12 Empty all paper recycling containers and place paper in central recycling bins. X X X 13 Dust, and wipe clean with a treated cloth all desktops (do not disturb tenant papers), meeting room furniture, file cabinets, bookcases, shelves, counters, and fixtures. X X X 14 Spot-clean all wall switches and door facings. X X X 15 Dust baseboards, ledges, and window sills. X X X 16 Remove cobwebs from ceiling corners. X X X 17 Vacuum all carpeted floors including offices, workstations, meeting rooms, training room and board room. X 18 Dust picture frames. X X X D – Daily; W – Weekly; M – Monthly; Q – Quarterly 6 Administration Operations Central Warehouse Treatment Plant # Task Description D W M Q D W M Q D W M Q 19 Brush down or vacuum wall-ceiling vents. X X X 20 Detail vacuum all carpeted areas. X X X 21 Remove spillage spots from carpets. X X X 22 Dust high-reach areas including partition tops, door tops, and air conditioning vents. X X X 23 Clean and polish executive office furniture. X X X 24 Brush or vacuum upholstered furniture. X X X 25 Wipe down plastic and leather furniture. X X X 26 Vacuum chairs. X X X 27 Spot-clean painted partitions and painted walls. X X X Kitchen, Kitchenettes & Break Room/Lunch Room 1 Empty all waste containers, clean containers as necessary, replace liners, and place trash in dumpsters. (Liners to be supplied by owner.) X X X 3 Clean and disinfect kitchen, kitchenettes, and lunchroom & break rooms including sinks, countertops, and tabletops. X X X 4 Clean inside of microwaves. X X X 5 Clean & wipe down exterior surfaces of coffee machines. X X X 6 Sweep floors. X X 7 Mop and disinfect floors. X X 8 Clean & disinfect exterior surfaces of kitchen appliances including microwaves, coffee machines, toaster ovens, stove/oven, refrigerators, and vending machines. X X X 9 Clean lunchroom furniture. X 10 Spot-clean all wall switches and door facings. X X 11 Dust baseboards, ledges, and window sills where applicable. X X 12 Remove cobwebs from ceiling corners where applicable. X X X Restrooms 1 Empty all waste containers, clean containers as necessary, replace liners, and place trash in dumpsters. (Liners to be supplied by owner.) X X X 2 Empty sanitary napkin containers and replace insert. X X X 3 Polish all metal and clean mirrors. X X X 4 Clean and disinfect all dispensers. X X X 5 Clean and disinfect washbasins, toilet bowls and urinals. X X X 6 Disinfect underside and tops of toilet seats. X X X 7 Refill soap, towel, tissue containers, and seat cover dispensers. X X X 8 Mop & disinfect floors. X X X 9 Brush down vents. X X X 10 Wash down ceramic tile walls and toilet compartment partitions. X X X 11 Pour clean water down floor drains to prevent sewer gases. X X X 12 Replace urinal screens. X X X D – Daily; W – Weekly; M – Monthly; Q – Quarterly 7 Regulatory Site Central Area Pump Station 30MG Reservoir 944-1 Reservoir- 1296 Pump Station Buena Vista Pump Station 450/680 Recycled Pump Station # Task Description 2W W 2W W 2W W 2W W 2W W 2W W Restrooms 1 Empty all waste containers, clean containers as necessary, replace liners, and place trash in dumpsters. (Liners to be supplied by owner.) X X X X X X 2 Empty sanitary napkin containers and replace insert. X X X X X X 3 Polish all metal and clean mirrors. X X X X X X 4 Clean and disinfect all dispensers. X X X X X X 5 Clean and disinfect washbasins, toilet bowls and urinals. X X X X X X 6 Disinfect underside and tops of toilet seats. X X X X X X 7 Refill soap, towel, tissue containers, and seat cover dispensers. X X X X X X 8 Mop & disinfect floors. X X X X X X 9 Brush down vents. X X X X X X 10 Wash down ceramic tile walls and toilet compartment partitions. X X X X X X 11 Pour clean water down floor drains to prevent sewer gases. X X X X X X 2W - Twice-Weekly; W - Weekly *Duties may be modified from time-to-time as circumstances require. 8 ATTACHMENT C SUBJECT/PROJECT: AUTHORIZE A TWO-YEAR FIXED AGREEMENT, PLUS THREE (3) ONE- YEAR OPTIONS, WITH T&T JANITORIAL, INC., FOR JANITORIAL SERVICES AT A NOT-TO-EXCEED TOTAL AMOUNT OF $286,800 SCORESHEET Qualification Experience of the Firm Qualification Experience of Assigned Personnel Completeness, Addressed Requested Information Proposed Method to Accomplish Work Hours Proposed Proposed Monthly Fee Total Score References SCORE 20 10 10 15 20 25 100 Prizm Janitorial Services, Inc. A Carey 20 10 10 15 6 25 86 S Chen 14 8 7 8 68 K Payne 18 9 10 14 81 F Conchas 17 8 9 12 77 311 T&T Janitorial, Inc. A Carey 20 10 10 15 17 20 92 S Chen 16 8 7 11 79 K Payne 19 10 10 14 90 Excellent F Conchas 16 8 9 14 84 344 Merchants Building Maintenance A Carey 18 7 6 2 6 10 49 S Chen 16 7 7 8 54 K Payne 18 9 7 10 60 F Conchas 18 9 9 13 65 227 * Priority Building Services, LLC. A Carey 20 6 5 6 15 1 53 S Chen 18 8 9 12 63 K Payne 14 7 7 9 53 F Conchas 18 8 8 12 62 231 *Incumbent STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: December 7, 2016 SUBMITTED BY: Tenille Otero Communications Officer PROJECT: Various DIV. NO. ALL APPROVED BY: Mark Watton, General Manager SUBJECT: Amendment to Extend the Joint Powers Agency Water Conservation Garden Operation Agreement GENERAL MANAGER’S RECOMMENDATION: That the Board of Directors approve the first amendment to the Joint Powers Agency (JPA) Water Conservation Garden Operation Agreement (Operation Agreement) [Attachment B], extending the expiration date an additional six months from December 31, 2016 to June 30, 2017. COMMITTEE ACTION: See Attachment A. PURPOSE: To request that the board consider extending the Operation Agreement to allow sufficient time for the Water Conservation Garden Joint Powers Agency (JPA) to thoroughly review and evaluate the Operation Agreement and develop a new agreement that is strategically beneficial for JPA members who provide funding to operate the Garden. ANALYSIS: Members of the JPA funded the construction of the Garden and continue to fund a majority of its operational costs. The original Operation Agreement, dated October 13, 2010, expires on December 31, 2016. The JPA expected to have a revised Operation Agreement completed prior to 2 the expiration date. However, the JPA members determined that since a revised agreement would need to be approved by each of the individual member agencies’ boards, the deadline of December 31 could not be met. The JPA members also agreed that they need adequate time to carefully consider the revisions. In addition, the Funding Agreement is due to expire in June 2017, whereas the Operation Agreement is on a calendar year. Members of the JPA and Friends of the Garden (Friends) Board have concurred that the two agreements’ schedules should be aligned since the funding of the Garden is so closely tied to the Operational Plan. Two District board members, Mark Robak as the District representative and Mitch Thompson as the alternate, support the District on the JPA committee. At the committee’s November 9, 2016 meeting, all members voted to extend the Operation Agreement an additional six months, from December 31, 2016 to June 30, 2017. Extending the agreement will provide the committee sufficient time to thoroughly review and revise the Operation Agreement. This will allow members of the JPA to evaluate their participation in funding and/or operating the Garden so it continues to provide valuable water conservation programs and utilize the facilities constructed at the Garden as intended by its founders. FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. STRATEGIC GOAL: Supports the objective in the District’s Strategic Plan to evaluate and enhance the District's water conservation programs and services. LEGAL IMPACT: None. Attachments: Attachment A – Committee Action Attachment B – First Amendment to Water Conservation Garden Operation Agreement ATTACHMENT A SUBJECT/PROJECT: Amendment to Extend the Joint Powers Agency Water Conservation Garden Operation Agreement COMMITTEE ACTION: This attachment will be updated with notes from the discussion of the Finance, Administration and Communications Committee meeting scheduled on Tuesday, Nov. 15, 2016. WATER CONSERVATION AUTHORITY FIRST AMENDMENT TO WATER CONSERVATION GARDEN OPERATION AGREEMENT The WATER CONSERVATION GARDEN The Water Conservation Garden Operation Agreement dated October 13, 2010 between the Water Conservation Authority and Friends of the Water Conservation Garden (collectively Parties) is amended as follows. 1.Paragraph 1, DEFINITIONS, section 1.58 SCHEDULED EXPIRATION DATE is amendedto mean June 30, 2017. The Agreement is amended for continued operation and maintenanceservices, and to align the Friends of the Water Conservation Garden's Operations budget withthe budgets of the agencies which make up the Joint Powers Agency. 2.Paragraph 4, TERM, is amended to reflect the extension of the Agreement. 3.Pursuant to Paragraph 14, INSURANCE, Friends of the Water Conservation Garden shall provide updated insurance documents to the Water Conservation Authority as required. 4.All other terms, covenants, and conditions in the original Agreement as amended shall remainin full force and effect, and shall be applicable to this Amendment. The individuals executing this amendment to Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. IN WITNESS WHEREOF, the Parties have executed this First Amendment to the Agreement on the date set forth below. AUTHORITY WATER CONSERVATION AUTHORITY, a Joint Powers Authority By: -----------Bo a rd President DATED: ---------- ATTEST: By: ------------Board Secretary OPERATOR FRIENDS OF THE WATER CONSERVATION GARDEN, a California nonprofit benefit corporation By: -----------­ Name: ----------- Title: ------------ By: -----------­ Name: ----------- Title: ------------ Attachment B