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HomeMy WebLinkAbout04-03-24 Board Packet1 OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY BOARD OF DIRECTORS MEETING 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA WEDNESDAY April 3, 2024 3:30 P.M. AGENDA 1. ROLL CALL 2. PLEDGE OF ALLEGIANCE 3. APPROVAL OF AGENDA 4. APPROVAL OF THE MINUTES OF THE SPECIAL BOARD MEETING OF FEB-RUARY 21, 2024 AND THE REGULAR BOARD MEETING OF MARCH 6, 2024 5. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD’S JURISDICTION INCLUDING AN ITEM ON TODAY’S AGENDA Additionally, if you wish to have your comment read to the Board during the “Pub-lic Participation” portion of the meeting, please email your comment to BoardSec-retary@otaywater.gov at least thirty minutes prior to the start of the meeting, which will be read aloud during the “Public Participation” portion of the meet-ing. Please provide your Name and the City in which you reside, with your com- ment. Your comment must not take more than three minutes to read. The Board is not permitted to respond to written public comment during this time. The District’s meeting is live streamed. Information on how to watch and listen to the District’s meeting can be found at this link: https://otaywater.gov/board-of-di- rectors/agenda-and-minutes/board-agenda/ PUBLIC HEARING 6. PUBLIC HEARING ON BOARD OF DIRECTORS PER DIEM RATE 2 THE BOARD WILL BE HOLDING A PUBLIC HEARING TO HEAR THE PUB-LIC’S COMMENTS ON THE PROPOSED 4.85% INCREASE TO THE BOARD OF DIRECTORS’ PER DIEM RATE FOR ATTENDING MEETINGS AND PER- FORMING THE DUTIES OF THEIR OFFICE a) ADOPT ORDINANCE NO. 591 TO APPROVE THE PROPOSED 4.85% IN- CREASE TO THE BOARD OF DIRECTORS’ PER DIEM RATE FOR AT- TENDING MEETINGS AND PERFORMING THE DUTIES OF THEIR OF- FICE; AND ADOPT RESOLUTION NO. 4440 AMENDING POLICY 8 TO REFLECT THE NEW PER DIEM RATE ACTION ITEMS 7. BOARD a) DISCUSS THE 2024 BOARD MEETING CALENDAR (TITA RAMOS-KROG-MAN) 8. GENERAL MANAGER a) ADOPT THE 2024 OTAY WATER DISTRICT LEGISLATIVE PROGRAM POLI-CY GUIDELINES AND TOP 10 LEGISLATIVE PRIORITIES (TENILLE OTERO) INFORMATIONAL ITEMS 9. THE FOLLOWING ITEMS ARE PROVIDED TO THE BOARD FOR INFORMA-TIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEMS: a) FISCAL YEAR 2024 MID-YEAR UPDATE FOR THE DISTRICT’S FISCAL YEAR 2023-2026 STRATEGIC PLAN (MIKE KERR) REPORTS 10. GENERAL MANAGER’S REPORT 11. SAN DIEGO COUNTY WATER AUTHORITY UPDATE 12. DIRECTORS' REPORTS/REQUESTS 13. PRESIDENT’S REPORT/REQUESTS RECESS TO CLOSED SESSION 14. CLOSED SESSION 3 a) CONFERENCE WITH LABOR NEGOTIATORS [GOVERNMENT CODE §54957.6] AGENCY DESIGNATED REPRESENTATIVES: GARY CROUCHER AND JOSE LOPEZ EMPLOYEE ORGANIZATION: OTAY WATER DISTRICT EMPLOYEES’ ASSOCIATION AND ALL REPRESENTED AND UNREPRESENTED PERSONNEL, INCLUDING MANAGEMENT AND CONFIDENTIAL EMPLOYEES b) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOV-ERNMENT CODE §54956.9] OTAY WATER DISTRICT vs. CITY OF SAN DIEGO; CASE NO. 37-2017- 00019348-CU-WM-CTL RETURN TO OPEN SESSION 15. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION. OTAY WATER DISTRICT FINANCING AUTHORITY 16. NO MATTERS TO DISCUSS 17. ADJOURNMENT All items appearing on this agenda, whether or not expressly listed for action, may be deliberated and may be subject to action by the Board. The Agenda, and any attachments containing written information, are available at the District’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 by contacting the District Secretary at (619) 670-2253. If you have any disability which would require accommodation in order to enable you to participate in this meeting, please call the District Secretary at (619) 670-2253 at least 24 hours prior to the meeting. 4 Certification of Posting I certify that on March 29, 2024, 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 72 hours in advance of the regular meeting of the Board of Directors (Government Code Section §54954.2). Executed at Spring Valley, California on March 29, 2024. /s/ Tita Ramos-Krogman, District Secretary 1 MINUTES OF THE SPECIAL BOARD MEETING OF THE BOARD OF DIRECTORS OTAY WATER DISTRICT February 21, 2024 1.President Lopez called the meeting to order at 12:15 p.m. 2.ROLL CALL Directors Present:Croucher, Keyes, Lopez, Robak and Smith Directors Absent:None Staff Present:General Manager Jose Martinez, General Counsel Dan Shinoff, Chief of Engineering Michael Long, Chief Financial Officer Joe Beachem, Chief of Administration Adolfo Segura, Chief of Operations Andrew Jackson, Asst. Chief of Finance Kevin Koeppen, District Secretary Tita Ramos-Krogman and others per attached list. 3.PLEDGE OF ALLEGIANCE 4.APPROVAL OF THE AGENDA A motion was made by Director Croucher, seconded by Director Keyes and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez, Robak and Smith Noes: None Abstain: None Absent: None to approve the agenda. 5.PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA No one wished to be heard. 6.WORKSHOP a)RALPH W. CHAPMAN WATER RECLAMATION FACILITY’S (RWCWRF) DISINFECTION SYSTEM IMPROVEMENT PROJECT Sr. Civil Engineer Lito Santos provided a PowerPoint presentation to give an update on the district’s RWCWRF Disinfection System Improvement Project. He noted that AGENDA ITEM 4 2 the district plans to replace the current chlorine disinfection system with a new UV disinfection system. He discussed the process of the transition. He indicated that the new UV disinfection system will be delivered by May 2024, and construction of the project is anticipated to be completed by late summer of 2025. General Manager Jose Martinez discussed the benefits of replacing the chlorine disinfection system with a UV disinfection system from an operational standpoint. There was a discussion on UV treatment vs. chlorine treatment and which treatment gets closer to providing pure water. There was also a discussion on cost advantages, which the UV system is more cost efficient and prolongs the system’s life expectancy. Director Croucher discussed collaborating with Sweetwater Authority, opportunities to upgrading to the next level (i.e. study, grants, etc.), and opportunities for groundwater discharge within the district’s jurisdictional boundaries. There was a discussion and update on the district’s efforts to work with the County Sanitation District for waste management. Director Smith suggested staff conduct a pilot study that includes spacing and grants for upgrading the treatment plant. In addition, staff responded to his questions about the distribution system of recycled water within the district’s jurisdictional boundary, and the possibility of collaborating with other agencies for cost efficiency. b) WATER CONSERVATION GARDEN UPDATE Director Mark Robak provided an update on matters of the Water Conservation Garden (WCG). He responded to questions from board members, which included WCG’s financial/budget status, hiring of a legal counsel, funding requests, number of staff and volunteers, business model and long term planning. There was also a discussion on the impacts of the WCG closing. RECESS TO CLOSED SESSION 7. CLOSED SESSION The board recessed to closed session at 1:10 p.m. to discuss the following matters: a) SECURITY OF PUBLIC SERVICE OR FACILITIES [GOVERNMENT CODE §54957] b) CONFERENCE WITH LABOR NEGOTIATORS [GOVERNMENT CODE §54957.6] AGENCY DESIGNATED REPRESENTATIVES: GARY CROUCHER AND JOSE LOPEZ 3 EMPLOYEE ORGANIZATION: OTAY WATER DISTRICT EMPLOYEES’ ASSOCIATION AND ALL REPRESENTED AND UNREPRESENTED PERSONNEL, INCLUDING MANAGEMENT AND CONFIDENTIAL EMPLOYEES c) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION [GOVERNMENT CODE §54956.9] RETURN TO OPEN SESSION 8. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION The board reconvened from closed session at 3:43 p.m. and General Counsel Dan Shinoff reported that the board took no reportable actions in closed session. 9. ADJOURNMENT With no further business to come before the Board, President Lopez adjourned the meeting at 3:43 p.m. President ATTEST: District Secretary 1 MINUTES OF THE BOARD OF DIRECTORS MEETINGS OF THE OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY March 6, 2024 1.The meeting was called to order by President Lopez at 3:35 p.m. 2.ROLL CALL Directors Present:Croucher, Keyes, Lopez, Robak and Smith Directors Absent:None Staff Present:General Manager Jose Martinez, General Counsel Dan Shinoff, Chief of Engineering Michael Long, Chief Financial Officer Joe Beachem, Chief of Administration Adolfo Segura, Chief of Operations Andrew Jackson, Asst. Chief of Finance Kevin Koeppen, District Secretary Tita Ramos-Krogman and others per attached list. 3.PLEDGE OF ALLEGIANCE 4.APPROVAL OF AGENDA General Counsel Dan Shinoff reported that there are no Closed Session items to consider and recommended removing it from the agenda. A motion was made by Director Croucher, seconded by Director Keyes, and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez, Robak and Smith Noes: None Abstain: None Absent: None to approve General Counsel Dan Shinoff’s recommendation to remove Closed Session items from the agenda. 5.APPROVAL OF THE MINUTES OF THE REGULAR MEETINGS OF JANUARY 3, 2024, AND FEBRUARY 7, 2024 A motion was made by Director Keyes, seconded by President Lopez, and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez, Robak and Smith Noes: None AGENDA ITEM 4 2 Abstain: None Absent: None to approve the minutes of the regular meetings of January 3, 2024, and February 7, 2024. 6. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA Ms. Gina Austin stated that she is representing Lighthouse Builders in its lawsuit against the Otay Water District and provided a copy and an update of the lawsuit to the board. There were no other public comments to be heard. UCONSENT ITEM 7. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PARTICULAR ITEM: A motion was made by Director Keyes, seconded by Director Smith and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez, Robak and Smith Noes: None Abstain: None Absent: None to approve the following consent calendar item: a) RATIFY AND APPROVE THE PURCHASE AND SALES AGREEMENT WITH CALWEST FOR THE PROPERTY AT 525 HUNTE PARKWAY, CHULA VISTA, CALIFORNIA ACTION ITEMS 8. BOARD a) ADOPT RESOLUTION NO. 4439 TO REJECT ALL BIDS RECEIVED FOR THE BOB PLETCHER WAY MAIN LEAK REPAIR PER CALIFORNIA PUBLIC CONTRACT CODE 22038 Charles Maderos provided a staff report to the board and responded to their questions. A motion was made by Director Croucher, seconded by Director Keyes and carried with the following vote: 3 Ayes: Directors Croucher, Keyes, Lopez, Robak and Smith Noes: None Abstain: None Absent: None to approve staff’s recommendation. b) REQUEST BY MR. ENRIQUE OCAMPO FOR A WAIVER TO THE CODE OF ORDINANCE, SECTION 62, EXTENT OF SYSTEMS FOR SUBDIVISIONS AND PARCEL MAPS, ITEM 62.01, FOR THE PROPERTY LOCATED ON 1446 PORTOLA AVENUE IN SPRING VALLEY Mr. Enrique Ocampo addressed the board to show pictures of an existing water main in front of his property. Engineer Manager Kevin Cameron provided a staff report to the board that included a chronology of communications and meetings with Mr. Ocampo and a summary of Mr. Ocampo’s waiver claims and staff’s findings. The exhibits in the staff report show locations of water mains near the property line, which none did not extend across the front of the property. Mr. Cameron recommended that the board reject the waiver request resulting in the required adherence to the existing Code to extend the water main through the entire frontage, approximately 50 feet, of the property. In response to a question from Director Croucher, Mr. Cameron stated that no prior wavier has been submitted to the district. Director Croucher asked if the approval of this waiver could open liabilities in the future. General Counsel Dan Shinoff stated that is a potential. Director Croucher recommended that the board deny the waiver and directed staff to work with Mr. Ocampo to help resolve the issue. A motion was made by Director Croucher, seconded by Director Keyes and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez, Robak and Smith Noes: None Abstain: None Absent: None to deny Mr. Enrique Ocampo’s waiver request and directed staff to work with Mr. Ocampo to help resolve the issue. Director Keyes left at 4:11 p.m. to virtually attend, as a committee member representing Otay Water District, an ACWA Energy Committee meeting. c) DISCUSS THE 2024 BOARD MEETING CALENDAR 4 District Secretary Tita Ramos-Krogman noted that there will be a Special Board Meeting Tour on March 8 at 12:00 p.m. and that a Communications, Public Relations, Legal and Legislative Committee is tentatively scheduled for March 19 at 11:30 a.m. She indicated that the March 19 Engineering, Operations and Water Resources Committee meeting was cancelled. In response to a request from Director Croucher, President Lopez stated that he will work with General Manager Martinez to consider having a meeting with east county agencies and Sweetwater Water Authority. U INFORMATIONAL ITEM 9. ITEMS ARE PROVIDED TO THE BOARD FOR INFORMATIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEM a) SECOND QUARTER FISCAL YEAR 2024 CAPITAL IMPROVEMENT PROGRAM REPORT Engineer Manager Kevin Cameron provided a PowerPoint presentation to the board and responded to their questions. Chief of Engineering Michael Long stated that staff is looking at other options to meet the CIP budget target for this fiscal year. In response to a question from Director Smith, Mr. Cameron stated that there was a cost increase for vandalism monitoring of the HMA Habitat area near the Salt Creek Golf Course. Chief Financial Officer stated that unspent money is earning interest, which is positive for the district. The money will remain in reserves until it is ready to be spent on projects. REPORTS 10. GENERAL MANAGER REPORT General Manager Jose Martinez provided his report to the board and discussed the Water Conservation Garden and the joint Powers Authority update, which he noted that the district will contribute $5,000 per month from March through June to the Garden. In total, the district will contribute $20,000. He also shared that the district received the California Society of Municipal Finance Officers (CSMFO) Operating Budget Award and the CSMFO Capital Budget Award and provided information on the OPEB Funded Status. He noted that he will be attending a Municipal Service Review Stakeholder Working Group Meeting (No. 1) on March 11, which he is a member of this group. Staff responded to additional comments and questions from the board. Director Keyes returned to the board meeting at 4:53 p.m. 5 11.SAN DIEGO COUNTY WATER AUTHORITY UPDATE Director Tim Smith discussed CWA’s fixed variable cost for water purchases, Metropolitan’s budget, conservation programs, property tax options, board governance policy – code of conduct of the board, and water rate issues. Director Croucher stated that the MWD budget is looking at an approximate $300 million dollar deficit due to a decrease in water sales, and a $15 million dollar overhead in expenditures. Director Smith discussed impacts from rainy weather conditions. Director Croucher discussed negotiations with Molten Miguel Consultants, member changes on CWA’s board, habitat restoration, and MWD’s Pure Water Program concerns, and conservation costs and water rate issues. 12.DIRECTORS' REPORTS/REQUESTS Director Croucher reported that he attended an Ad Hoc Negotiations meeting on February 27. Director Robak provided an update on the Water Conservation Garden and Joint Powers Authority matter. 13.PRESIDENT’S REPORT President Lopez stated that there will be a Public Hearing at the next board meeting to consider a 5% per diem increase for board members. U UUOTAY WATER DISTRICT FINANCING AUTHORITY 14.NO MATTERS TO DISCUSS There were no items scheduled for discussion for the Otay Water District Financing Authority board. 15.ADJOURNMENT With no further business to come before the Board, President Lopez adjourned the meeting at 5:31 p.m. President ATTEST: District Secretary (Director’s Signature) GM Receipt: Date: FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To: Jose Lopez Period Covered: Employee Number: 7010 From: 01/01/24 To: 01/25/24 ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED MILEAGE HOME to OWD OWD to HOME MILEAGE OTHER LOCATIONS 1 01/03/24 OWD Regular Board Meeting 19 2 01/05/24 CV Chamber of Commerce First Friday Breakfast Mtg. (NO CHARGE) 3 01/09/24 OWD Meeting with General Manager 4 4 01/11/24 OWD Committee Agendas Briefing 5 01/16/24 COWU Council of Water Utilities Quarterly Meeting 42 6 01/17/24 OWD Finance Committee Meeting 19 7 01/23/24 OWD Engineering Committee Meeting (NO CHARGE) 8 01/23/24 Water Conservation Garden Financial Reporting Meeting 26 9 01/25/24 SD County Water Authority Regular Board Meeting 44 44 10 Total Meeting Per Diem: ($165 per diem) Total Mileage Claimed: 154 miles (Director’s Signature) GM Receipt: Date: FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To: Jose Lopez Period Covered: Employee Number: 7010 From: 02/01/24 To: 02/29/24 ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED MILEAGE HOME to OWD OWD to HOME MILEAGE OTHER LOCATIONS 1 02/01/24 OWD Board Agenda Briefing 2 02/06/24 OWD Ethics Training 3 02/07/24 OWD Regular Board Meeting 19 4 02/08/24 FLOW Friends Latinos on Water (NO CHARGE) 5 02/08/24 Chula Vista Chamber Commerce Meet Candidates (NO CHARGE) 6 02/09/24 Water Conservation Garden Special JPA Meeting at Otay Water District 19 7 02/10/24 OWD Meeting with Director Croucher and Legal Counsel 34 8 02/11/24 OWD GM Quarterly Director’s Meeting 9 02/15/24 CSDA Quarterly Dinner Meeting 42 10 02/15/24 OWD Committee Agenda Briefing (NO CHARGE) 11 02/21/24 OWD Special Board Meeting (Retreat) 19 12 02/27/24 OWD Ad Hoc Labor Negotiations Meeting 13 02/29/24 OWD Board Agenda Briefing Total Meeting Per Diem: ($165 per diem) Total Mileage Claimed: 133 miles (Director’s Signature) Date: OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To: Gary Croucher Period Covered: Employee Number: 7011 From: 12/01/23 To: 12/27/23 ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED (Via Teleconference) MILEAGE HOME to OWD OWD to HOME MILEAGE OTHER LOCATIONS 1 12/04/23 Otay Water District Meeting w/ legal counsel - - 2 12/05/23 Otay Water District Director’s Quarterly Meeting with General Manager Martinez - - 3 12/27/23 Otay Water District Meeting w/ legal counsel - - 4 - - 5 - - 6 - - Total Meeting Per Diem: ($165 per diem) Total Mileage Claimed: 0 miles (Director’s Signature) GM Receipt: Date: FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To: Gary Croucher Period Covered: Employee Number: 7011 From: 01/01/24 To: 01/23/24 ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED (Via Teleconference) MILEAGE HOME to OWD OWD to HOME MILEAGE OTHER LOCATIONS 1 01/03/24 Otay Water District Regular Board Meeting - - 2 01/10/24 Otay Water District CWA Matters Meeting - - 3 01/16/24 Otay Water District CWA Matters Meeting - - 4 01/23/24 Otay Water District CWA Matters Meeting - - 5 - - 6 - - Total Meeting Per Diem: ($165 per diem) Total Mileage Claimed: 0 miles (Director’s Signature) GM Receipt: Date: FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To: Gary Croucher Period Covered: Employee Number: 7011 From: 02/01/24 To: 02/29/24 ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED (Via Teleconference) MILEAGE HOME to OWD OWD to HOME MILEAGE OTHER LOCATIONS 1 02/01/24 Otay Water District CWA Matters Meeting - - 2 02/07/24 Otay Water District Regular Monthly Board Meeting - - 3 02/09/24 Otay Water District Attended the JPA-Water Conservation Garden Special Board Meeting - - 4 02/10/24 Otay Water District Meeting with General Counsel Shinoff and President Lopez - - 5 02/12/24 Otay Water District Director’s Quarterly Meeting - - 6 02/20/24 Otay Water District CWA Matters Meeting - - 7 02/21/24 Otay Water District Special Board Meeting 8 02/27/24 Otay Water District Ad Hoc Negotiations Meeting Total Meeting Per Diem: ($165 per diem) Total Mileage Claimed: 0 miles 1896 From:12/1/23---12/31/23 ITEM DATE MEETING PURPOSE / ISSUES MILEAGE HOME TO OWD OWD TO HOME MILEAGE OTHER LOCATIONS 1 12/15/2023 CSDA Class The New World of Remote Work 2 12/16/2023 CSDA Class Grant Funding 201 3 12/17/2023 CSDA Class AWIA Risk Assessment and Emergency Response Plan 4 12/22/2023 CSDA Class A Practical Guide for Creating a New Board Member Orientation 5 12/23/2023 CSDA Class Effective Management of People in a Hybrid Workplace 6 12/28/2023 CSDA Class Effective Meeting Management Through Parliamentary Procedure 7 12/29/2023 CSDA Class Increase Efficiency with Cloud Technology 8 12/30/2023 CSDA Class Completing Your Form 700 & Spotting Potential Conflicts of Interest 9 10 11 $ Miles GM Receipt: OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To: Ryan Keyes Period Covered Employee Number Total Mileage Claimed: Director Signature ($165 PER MEETING) Total Meeting Per Diem: 1896 From:2/1/24---2/29/24 ITEM DATE MEETING PURPOSE / ISSUES MILEAGE HOME TO OWD OWD TO HOME MILEAGE OTHER LOCATIONS 1 2/7/2024 OWD Board Meeting Monthly Board Meeting 2 2/12/2024 Quarterly Meeting Quarterly General Manager Mtg 3 2/14/2024 CSDA Class Ratepayer Assistance and Water Shut-Off Laws 4 2/15/2024 CSDA Dinner Beyond the Ballot: Election Insights and the 2024 Election Landscape"-no charge 5 2/16/2024 CSDA Class The ABCs of SDLF 6 2/17/2024 CSDA Class Prevailing Wage Update 2024 7 2/20/2024 EO&WR Committee Meeting EO&WR Committee Meeting 8 2/21/2024 OWD Board Meeting OWD Special Board Meeting 9 2/24/2021 AWWA Webinar AWWA Webinar- Achieving Net Zero 2050: A Practical Approach to Decarbonization 10 11 $ Miles GM Receipt: FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $_____________ Pay To: Ryan Keyes Period Covered Employee Number Total Mileage Claimed: Director Signature ($165 PER MEETING) Total Meeting Per Diem: OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Mark Robak 7014 From:12/1/2023 12/31/2023 ITEM DATE MEETING PURPOSE / ISSUES MILEAGE HOME TO OWD OWD TO HOME MILEAGE OTHER LOCATIONS 1 12/1/2023 East County Chamber of Commerce First Friday Breakfast - NO CHARGE 0 0 2 12/1/2023 Otay Water District Committee Agenda Briefing 0 0 3 12/2/2024 Otay Holiday Party NO CHARGE 0 0 4 12/4/2023 Living Water Presentation Book on the Colorado River by author Dave Showalter - NO CHARGE 0 0 5 12/5/2024 Otay Water District Engineering, Operations, and Water Resources (EO&WR) Committee 0 0 6 12/6/2023 Otay Water District Bob Kennedy Retirement - NO CHARGE 0 0 7 12/7/2024 San Diego Chamber of Commerce Holiday Reception - NO CHARGE 0 0 8 12/9/2024 Water Conservation Garden JPA Very Merry Garden event - NO CHARGE 0 0 9 12/11/2024 Otay Water District Ad-Hoc Salt Creek Committee meetong 0 0 10 12/12/2024 Colorado River Water Users Association Annual conference on Colorado River water issues 0 36 11 12/13/2024 Colorado River Water Users Association Annual conference on Colorado River water issues 0 0 12 12/14/2024 Colorado River Water Users Association Annual conference on Colorado River water issues 0 0 13 12/15/2024 Colorado River Water Users Association Annual conference on Colorado River water issues 0 36 14 12/18/2024 San Diego LAFCO Holiday Party - NO CHARGE 0 0 15 12/28/2024 Otay Water District Board Agenda Briefing 0 0 0 72 $ 72 Miles GM Receipt: Date: ___________________ FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ _____________ OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To:Period Covered Employee Number Total Mileage Claimed: Director Signature ($165 PER MEETING) Total Meeting Per Diem: Tim Smith 1845 From: 12/1/2023 to 12/31/2023 ITEM DATE MEETING PURPOSE / ISSUES MILEAGE HOME TO OWD OWD TO HOME MILEAGE OTHER LOCATIONS 1 12/11/2023 Ad Hoc Salt Creek Received a status update on the Salt Creek land sale 0 0 2 12/27/2023 SDCWA Matters Discuss SDCWA matters with GM and Dir. Croucher - SDCWA Mtg 0 0 3 4 5 6 7 8 9 10 11 0 0 $ 0 Miles GM Receipt: FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $_____________ OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To:Period Covered Employee Number Total Mileage Claimed: Director Signature ($165 PER MEETING) Total Meeting Per Diem: Tim Smith 1845 From: 2/1/2024 to 2/29/2024 ITEM DATE MEETING PURPOSE / ISSUES MILEAGE HOME TO OWD OWD TO HOME MILEAGE OTHER LOCATIONS 1 2/1/2024 SDCWA Matters Discuss SDCWA matters with GM and Dir. Croucher - SDCWA Mtg 0 0 2 2/20/2024 SDCWA Matters Discuss SDCWA matters with GM and Dir. Croucher - SDCWA Mtg 0 0 3 2/21/2024 East County Caucus Dicuss East County issues with agencies and CWA (NO CHARGE)0 44 4 2/21/2024 Otay Special Board Meeting Otay Board Retreat 26 0 5 2/23/2024 Qrtly Meeting Discuss Otay issues with GM 0 0 6 7 8 9 10 11 26 44 $ 70 Miles GM Receipt: FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $_____________ Pay To:Period Covered Employee Number Total Mileage Claimed: Director Signature ($165 PER MEETING) Total Meeting Per Diem: OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM {AS7 Law San Diego/004344/000002/MI/S0548389.DOCX} TO: The Otay Water District Board of Directors, General Manager Jose Martinez FROM: Daniel R. Shinoff, Esq. RE: Increasing the Board of Directors Per Diem Compensation - Policy 08 DATE: April 3, 2024 PURPOSE Policy 8 provides for Board members to be compensated for each day of attendance at meetings of the Board or for each day of service rendered as a Director by request or authorization of the Board. California Water Code sections 20200 et seq. authorize the Board of Directors, by Ordinance, to increase the amount of per diem compensation they receive for performing approved duties. If the per diem compensation is increased, Policy 8 will also need to be amended to reflect the change. The purpose of the proposed amendments outlined in this report is to update Board of Directors Policy 8 to increase the compensation to be paid to members of the Board of Directors for each day of service as a Director. PROPOSED CHANGES TO POLICY NO. 8 1.Increasing Compensation to be Paid to Members of the Board of Directors Board Policy 8 Section A. Directors’ Per Diem provides, in pertinent part, that the membersof the Board of Directors receive per diem compensation “in the amount of $165 for each day of attendance at meetings of the Board or for each day of service rendered as a Director by request or authorization of the Board, not to exceed a total of ten (10) days in any calendar month.” Water Code Section 20201 provides that the Board may provide compensation to members of the Board of Directors “in an amount not to exceed … $100”. Section 20202 authorizes the Board to increase the amount of compensation above the amount of $100 per day but, provides that “the increase may not exceed an amount equal to 5 percent, for each calendar year following the operative date of the last adjustment ...” Procedurally any increase must be by Ordinance after a properly noticed public hearing (Water Code Section 20203). The public hearing must be noticed pursuant to Section 6066 of the Government Code, which requires publication of notice of the AGENDA ITEM 6a Proposed Changes to Policy No. 8 April 3, 2024 Page 2 {AS7 Law San Diego/004344/000002/MI/S0548389.DOCX} proposed Ordinance “once a week for two successive weeks.” Section 6066 provides further that “[t]wo publications in a newspaper published once a week or oftener, with at least five days intervening between the respective publication dates not counting such publication dates, are sufficient. The period of notice commences upon the first day of publication and terminates at the end of the fourteenth day, including therein the first day.” Section 20204 of the Water Code provides that the ordinance increasing compensation to be paid board members shall become effective sixty (60) days from the date of its final passage. The District has complied with notice publication requirements by the Star News and the East County Californian newspapers on March 15, 2024 and March 22, 2024. Accordingly, pursuant to the aforementioned legal authorities with the District Policy, the Board is legally authorized to increase by Ordinance, the current compensation of $165 for each day of attendance at meetings of the Board or for each day of service rendered as a Director by request or authorization of the Board, to $173 per day, and not to exceed 10 days per month. 2. Policy Corrections Necessary to Conform with the Law a. If the Board adopts Ordinance No. 591 and increases the Directors’ per diem compensation pursuant to California Water Code section 20200 et seq., Policy 8, Section A. Directors’ Per Diem must also be amended to reflect the amount of the increased per diem compensation. The proposed corrections are shown on the document titled “Policy No. 8 Strike-through”, which is attached to this Report. The Board can adopt the proposed corrections by Resolution. Attachments: Attachment A: Ordinance No. 591 Attachment B: Resolution No. 4440 Exhibit 1: Policy No. 8 Strike-through Exhibit 2: Policy No. 8 Final ATTACHMENT A ORDINANCE NO. 591 ORDINANCE OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT INCREASING THE COMPENSATION TO BE PAID TO MEMBERS OF THE BOARD OF DIRECTORS FOR COMPENSATION FOR EACH DAY OF ATTENDANCE AT MEETINGS OF THE BOARD OR FOR EACH DAY OF SERVICE RENDERED AS A DIRECTOR WHEREAS, California Water Code Section 20200 et seq. sets forth the authority and procedure for establishing per diem compensation for the Board of Directors for occurrences constituting District business, official duties or each day's service rendered as a Director at the request of the Board, as a "day’s service" is defined and authorized by separate District resolution and updated from time to time; and WHEREAS, the California Water Code authorizes an increase in the per diem compensation that the Board of Directors may receive of up to five percent (5%) for each calendar year from the effective date of the last increase, and limits the total compensation that may be received to a maximum of ten (10) days per calendar month; and WHEREAS, the last adjustment in compensation for the Board of Directors occurred effective July 1, 2023; and WHEREAS, the Board of Directors seeks to increase the amount of compensation in accordance with the provisions of the California Water Code; and WHEREAS, Section 20204 of the California Water Code provides that the ordinance increasing compensation to be paid board members shall become effective sixty (60) days from the date of its final passage; and WHEREAS, in accordance with Section 20203 of the California Water Code and Section 6066 of the California Government Code, a public hearing was held before the Board at its regular meeting on April 3, 2024, at 3:30 p.m., or soon thereafter as was practicable, at the District’s administrative building located at 2554 Sweetwater Springs Boulevard, Spring Valley, California 91978, and a notice of said hearing was duly published in the Star News and the East County Californian newspapers on March 15, 2024 and March 22, 2024. NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT DOES HEREBY PROMULGATE ORDINANCE NO. 591 AND DOES ORDAIN AS FOLLOWS: Section 1. Beginning on July 1, 2024, and continuing until modified by Board action, the per diem compensation for Directors of Otay Water District is increased to One Hundred Seventy Three Dollars ($173) for each day of attendance at meetings of the Board or for each day of service rendered as a Director by request or authorization of the Board. Said increase does not exceed five percent (5%) for each calendar year since the effective date of the last increase; and Section 2. In accordance with Section 20202 of the California Water Code, no member of the Board of Directors shall receive the compensation set forth in Section 1 of this Ordinance for more than ten (10) days in any calendar month. Section 3. This Ordinance shall take effect on July 1, 2024, pursuant to Section 20204 of the California Water Code. Section 4. All ordinances, resolutions, or administrative actions by the Board of Directors, or parts thereof, that are inconsistent with any provision of this Ordinance are hereby superseded only to the extent of such inconsistency. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting held this 3rd day of April, 2024. Ayes: Noes: Abstain: Absent: President ATTEST: District Secretary RESOLUTION NO. 4440 RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING BOARD OF DIRECTORS POLICY NO. 8, REIMBURSEMENT OF EXPENSES. WHEREAS, the Otay Water District Board of Directors Policy No. 8 provides for, among other things, per diem compensation for Directors and reimbursement of expenses which are the personal responsibility of the Directors. WHEREAS, a revision to Otay Water District Board of Directors Policy No. 8 is required to reflect the Directors’ increased per diem compensation of One Hundred seventy three Dollars ($173) effective July 1, 2024, following the Board’s adoption of Ordinance 591 after a properly noticed public hearing at its regular meeting on April 3, 2024. WHEREAS, the amendments to Policy No. 8 to align the policy provisions with Ordinance 591 and with District practice, are in the District’s interest. WHEREAS, the strike-through copy of the proposed policy is attached as Exhibit 1 to this resolution; and WHEREAS, the Board has reviewed and considered the proposed amendments to Policy No. 8. NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED by the Board of Directors of the Otay Water District that the above stated recitals are incorporated herein by reference; BE IT RESOLVED FURTHER that the amended Policy No. 8, incorporated herein as Exhibit 2, is hereby adopted. FINALLY BE IT RESOLVED that this resolution shall be in full force and effect immediately after its passage and approval. ATTACHMENT B PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting held this 3rd day of April, 2024. Ayes: Noes: Abstain: Absent: President ATTEST: District Secretary OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/53/234 Page 1 of 7 Purpose To provide guidelines for payment of compensation and reimbursement of expenses to Directors in connection with their attendance at meetings or the performance of other authorized business, and for group insurance benefits for Directors. Background Members of the Board of Directors (“Directors”) attend regular, adjourned or special meetings of the Board of Directors (“Board”). In addition, Directors attend other District meetings, committee meetings, association meetings, and educational seminars on behalf of the District. These meetings and seminars are related to District business, water and wastewater, water and wastewater related issues, and California special districts. State statutes authorize District payments for attendance at meetings and reimbursements of expenses incurred. State law also authorizes the District to provide health and welfare benefits for active Directors and, in limited circumstances, retired Directors if they served 12 years and were first elected prior to January 1, 1995. The District is also authorized to offer health and welfare benefits for retired Directors who commenced office on or after January 1, 1995, if the recipient participates on a self-pay basis. Policy The District will compensate Directors on a per diem basis for attendance at authorized meetings or functions and will reimburse Directors for reasonable expenses incurred while traveling on District business to include, lodging, dining, transportation and related incidentals. A. Directors’ Per Diem As provided in Section 1.01 C. of the District Code of Ordinances,each Director shall receive a per diem in the amount of $17365(effective July 1, 2023) for each day of attendance at meetings ofthe Board or for each day of service rendered as a Director byrequest or authorization of the Board, not to exceed a total often (10) days in any calendar month. Attendance at any meeting shown on Exhibit A to this Policy shall be deemed a meetingrequested or authorized by the Board. Attendance at meetings shall be in accordance with Exhibit A. The President of the Board or theBoard may authorize a Director to attend meetings not listed inExhibit A when the President or the Board determines that it is inthe interest of the District that a Director attend, and that suchattendance be compensated and expenses reimbursed. Director’sclaims for per diem amounts shall be made on a “Board of DirectorsPer Diem and Mileage Claim Form” (Exhibit B). The President of theBoard or the Board may approve reimbursement of expenses outsidethe per diem limit for a Director if the Director submits receipts for all of the related District business expenses. Exhibit 1 OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/53/234 Page 2 of 7 The Board President or the Board of Directors may restrict a Director’s ability to receive a per diem for meeting attendance if the Director engages in misconduct. Said restriction may apply to pre-approved meetings as listed on Attachment A of this policy. (Please see Board Policy 40: Ethics.) Attendance at a meeting that is not authorized by this policy (pre- approved meetings) or pre-approved by the President may be approved by the Board for per diem compensation. Director’s seeking per diem compensation for these meetings shall request that the item be presented to the Board at its next regularly scheduled meeting for consideration. The decision of the Board shall be final. When travel arrangements require a day earlier arrival or a day later departure, Directors will be eligible for the $17365 per diem and reasonable expenses associated with the extended stay will be reimbursed as specified below. B. Pre-payment of Otherwise Reimbursable Expenses The Director may request pre-payment of registration, transportation, and lodging, using the “Board of Directors Travel Request Form” (Exhibit C). Pre-payments shall be limited to the Director’s expenses only. No advances shall be made on travel expenses. C. Reimbursement of Expenses Each Director shall be reimbursed for travel expenses to and from the meetings described in Exhibit A or for any other authorized District business as follows: 1. Authorization Travel associated with the attendance of meetings or functions for Directors shall be approved in advance by the Otay Water District Board President. To request approval of travel, the Director should complete a “Board of Directors Travel Request Form” (Exhibit B) in order to be eligible for compensation and/or reimbursement. Travel requests will be reviewed and approved by the Board President or the Board. 2. Transportation a. Air Transportation The District will endeavor to purchase airline tickets in advance taking advantage of discounts and low airfares. b. Automobile 1. Personal Auto: Directors may use their personal vehicle. The District will reimburse Directors at the current rate/mile as established by the IRS, OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/53/234 Page 3 of 7 plus tolls, parking, etc., provided, however, if air transportation is available, the total amount of expense paid shall be limited to the cost of coach air travel between points traveled by personal vehicle. Gasoline, collision and liability insurance, and maintenance will be provided by the Director and is deemed covered in the rate/mileage reimbursement. Directors using personal vehicles on District business must maintain a valid California driver’s license and the automobile insurance coverage required by the State of California, or make arrangements for a driver who meets the above requirements. 2. Rental Cars: The District will provide a rental car when needed. Such rental car shall be a compact or mid-size class, unless upgrades are offered at no additional cost to the District. c. Miscellaneous Transportation Whenever practicable, bus, taxi, rail, shuttle, etc. transportation may be used in lieu of, or in conjunction with, the modes above. 3. Meals and Lodging a. Meals and Beverages Whenever travel requires meals, the meals, excluding gratuity, shall be reimbursable, provided the Director presents a receipt along with the “Board of Directors Expense Claim Form” (Exhibit D) for all meals. Reimbursements for expense items where a receipt has been lost will not be paid until the President or the Board has reviewed and approved the expense item. Meals are reimbursable based on the Meals and Incidental Expenses (M&IE) as updated by the U.S. General Services Administration: 1. Full Day Reimbursement When a Director is traveling for a full day and no meals are provided for by other sources, such as pre-paid registration, the Director may be reimbursed for meal expenses at the rate provided by the M&IE per day. This amount is exclusive of any gratuities. 2. Single Meal Reimbursement When a Director requires reimbursement for a single meal while traveling, the maximum meal OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/53/234 Page 4 of 7 reimbursement amount shall be at a rate provided by the M&IE for Breakfast, lunch, and/or dinner, or amounts determined by the President or the Board to be reasonable for the occasion or circumstances. These amounts and any amount approved by the President or Board shall exclude gratuities. 3. Partial Day Reimbursement When a Director will be traveling for a partial day or where a single meal is provided for by other sources such as pre-paid registration, the maximum reimbursement amount shall be at the rate provided by the M&IE per meal, or such other amounts as may be determined by the President or the Board to be reasonable for the occasion or circumstances. In any event all amounts to be reimbursed shall exclude any gratuities. 4. Taxes The maximum meal reimbursement amounts are inclusive of and assume expenses for taxes. The maximum meal reimbursements shall exclude any and all gratuities. b. Lodging The District will reimburse Directors or pre-pay accommodations in single rooms at conference facilities or in close proximity when applicable. Or, in the absence of conference accommodations, normal single-room business, government or commercial class accommodation may be obtained. Under normal circumstances, lodging will not be reimbursed for the night before a conference starts and the night after it ends. However, in situations where available travel schedules would require the Director to leave home before 6:00 AM or return to home after 12:00 AM, lodging for the night before or the night after will be reimbursable. 4. Entertainment The District shall not cover any expenses incurred for recreation or entertainment. 5. Incidental Expenses Unavoidable, necessary, and reasonable authorized expenses will be fully reimbursed by the District. Some examples of allowable expenses are: OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/53/234 Page 5 of 7 a. Reasonable transportation to local restaurants and to optional functions that are a part of conference events. b. Parking fees. c. The following expenses are not reimbursable: 1. Alcoholic beverages 2. Parking or traffic violations 3. In-room movies or laundry services 6. Directors’ Responsibility a. Directors must submit a detailed “Board of Directors Expense Claim Form” for reimbursement. Claim forms should be supported by vouchers and itemized receipts of expenditures for which reimbursement is being requested. Receipts must be attached for all expenses. If a receipt is lost, the lost receipt must be noted on the “Board of Directors Expense Claim Form” (Exhibit D) and approved by the President or the Board before any payment can be made. Claim forms shall be submitted within 45 calendar days after the expense was incurred. Expense claims requiring reimbursement to the District, which are not reconciled within 45 calendar days, shall be deducted from the next month’s reimbursement. b. Expenses will not be reimbursed for meetings that have been pre-paid and not attended. The President or the Board may excuse an absence for a meeting. The absent Director shall provide a verbal or written report at the next regularly scheduled Board meeting stating the reason for the absence and, if appropriate, request that it be excused. Directors will be required to reimburse the District for any pre-paid expenses for any unexcused absence. This reimbursement will be made by deduction from future expenditures. c. When two (2) or more Directors combine an expense on one receipt, the Director requesting reimbursement should indicate, on or attached to the Director’s “Board of Directors Expense Claim Form” the identity of the other persons sharing expenses. This will facilitate appropriate allocation of expenses to each participant. d. Expenses incurred by a Director, other than reimbursable expenses, including, but not limited to expenses of the Director’s spouse, family members, or guests are the responsibility of the Director. e. Each Director shall provide a brief report on meetings OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/53/234 Page 6 of 7 attended at the expense of the District at the next regular meeting of the Board of Directors [Government Code Section 53232.3(d)]. The report may be provided verbally during the “Directors Reports” section of the meeting or submitted in writing to the District Secretary on the “Board of Directors Meetings Attended Form” (Exhibit E). Written reports will be filed with the minutes of the meeting and become part of the board records. f. All documents related to reimbursable District expenditures are public records subject to disclosure under the California Public Records Act. [Government Code Section 53232.3(d)]. g. The District shall, at least annually, provide a report to disclose any reimbursement paid by the District within the immediately preceding fiscal year of at least $100 for each individual charge for services or product received. “Individual charge” (as defined in California Government Code Section 53065.5) includes, but is not limited to, one meal, lodging for one day, transportation, or a registration fee. D. District Group Insurance Benefits 1. Each Director, while serving as a member of the Board of Directors, shall be entitled to the health and welfare and life insurance benefits set forth in the Schedule of Benefits in the District Group Insurance Plan Booklet, which benefits are furnished by the District at District cost, with applicable contributions, for active District employees and Directors. Each active Director shall also be entitled to a $65,000 term life and accidental death and dismemberment insurance policy (subject to policy requirements and any standard age reduction schedule), a $100,000 travel accidental death and dismemberment policy. In addition to the foregoing, the District will pay premiums for additional individual life insurance coverage in an amount of up to $250,000 for a 20 year term for those active Directors who apply for such coverage with the District’s provider and meet the provider’s standard underwriting guidelines and policy requirements. If coverage at higher amounts or for a longer term is made available by the provider, each Director may purchase such additional coverage on a self-pay basis. 2. Each former member of the Board of Directors, who served in office after January 1, 1981, who was elected to a term of office that began before January 1, 1995, who is at least 60 years of age, and whose total service at the time of OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/53/234 Page 7 of 7 termination is not less than 12 years, shall be entitled to the health and welfare and life insurance benefits set forth in the District Group Insurance Plan Booklet, which benefits are furnished by the District, at District cost, for retired Directors. E. Miscellaneous 1. The General Manager shall submit the District’s organizational membership list, which the Board shall review annually in January following reorganization of the Board and election of a new President. 2. Cell Phone expenses are not considered a reimbuseable expense. Attachments Exhibit A: Approved Function List Exhibit B: “Board of Directors Per Diem and Mileage Claim Form” Exhibit C: “Board of Directors Travel Request Form” Exhibit D: “Board of Directors Expense Claim Form” Exhibit E: “Board of Directors Meetings Attended Form” EXHIBIT A Approved Functions List Board Policy for payment of per diem compensation and expenses for Director attendance at District meetings: The Board reviews its authorization and policy for payment of per diem compensation for pre-approved meetings annually, in January following reorganization of the Board and election of a new President. Below is the current Board policy: 1. The following meetings are pre-approved for all Directors to attend and receive per diem compensation and expense reimbursement: a) Otay Water District Regular and Special Board Meetings b) Otay committee meetings for committee members only c) Otay business meetings called by the General Manager or the Board President, or authorized by the Board President where individual Directors are requested to attend d) Except as otherwise specifically excluded in this policy, official District functions that take place during normal business hours where Directors are requested to attend by either the Board President or the Board e) District sponsored events or events where the District sponsors a table and the Board President or the General Manager extends invitations to Directors to attend the event f) Semi-annual conference of the Association of California Water Agencies g) Regular quarterly meetings of the Water Agencies Association of San Diego County h) Regularly monthly meeting of Council of Water Utilities i) Business meetings and conferences of the California Special District Association held in San Diego County j) Up to four (4) board meetings of the San Diego County Water Authority per calendar year k) Up to one (1) board meeting of the Metropolitan Water District per calendar year l) Business or Board Meetings of regional and/or local Chambers of Commerce, where the District maintains a membership or whose geographical area includes the District’s service area, and the meeting includes discussions that are water and wastewater-industry related All other meetings not listed here require pre-approval by the President or Board for Directors to receive per diem compensation and/or expense reimbursement. EXHIBIT A 2. The following meetings are pre-approved for designated Otay Director representatives or designated alternate. The District Secretary will maintain an updated list of designated Director representatives. Any other Director who wishes to attend these meetings and receive a per diem must have approval from the President or Board prior to the event or be designated by the President or Board, as an alternate. The pre-approval shall include the attendance of the Director at the commission, committee, board or meeting and any committee, subcommittee or other official or posted meeting of the agencies, commissions, committees or boards listed below: a) Planning Group and government agency meetings that fall within the boundaries of each Directors district (when issues impacting OWD are discussed) b) Inter-Agency Committee Meeting c) METRO (TAC/AFFORD) Commission d) ACWA or CSDA meetings/conferences e) Water Conservation Garden f) WateReuse Association g) South County Economic Development Council 3. The Board President or his designee is pre-authorized to attend District business meetings with cities and other agencies to represent Otay Water District and may claim a per diem and expenses. Any other Director desiring to attend the same meeting of this nature would require approval to attend from the President or the Board in order to receive a per diem and expense reimbursement. 4. When the President or the Board appoints a Director(s) to a committee, the meeting(s) shall be considered pre-approved for per diem and expense reimbursement. 5. The following meetings are not eligible for pre-approved per diem claims: a) Attending other Districts’ Board meetings, unless there is a matter on their agenda that is related to Otay business b) Otay employee appreciation breakfast, luncheons or dinners c) Retirement receptions d) Otay picnics or dinner-dances or other purely social events e) If a per diem reimbursement is offered by another agency (i.e. San Diego County Water Authority and the Metro Commission) f) First Friday Breakfasts unless presenting Otay official business to the assembly EXHIBIT A g) Any political campaign event or function 6. In order to submit a per diem/travel reimbursement the member must attend at least 50% of the meeting (per day) and the reimbursement request must be submitted within 45 days of the occurrence, otherwise it may be considered attended without per diem. The President of the Board will make the final determination. 7. All other meetings/conferences/tours/seminars/ workshops/functions not listed in this policy must be pre-approved by the Board President or the Board. EXHIBIT B (Director’s Signature) GM Receipt: Date: FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ INSTRUCTIONS ON REVERSE OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To: Period Covered: Employee Number: From: To: ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED MILEAGE HOME to OWD OWD to HOME MILEAGE OTHER LOCATIONS Total Meeting Per Diem: $ ($17365 per meeting) Total Mileage Claimed: miles EXHIBIT B INSTRUCTIONS FOR PREPARATION OF BOARD OF DIRECTORS PER DIEM CLAIM FORM 1. Record the date, and name or purpose/issues discussed of meeting attended on behalf of the District. Note: The District will pay Director's per-diem for one meeting/ function per day and the maximum of 10 meetings/functions per month. If a Director attends more than 10 meetings/functions (10 days), the District will reimburse for the mileage and any reimbursable out-of-pocket expenses incurred for these additional meetings. 2. Record number of miles (round trip) driven to attend meeting/function. The use of personal vehicles in the conduct of official District business shall be reimbursed at the current Internal Revenue Service rate. The Director's expense claim should indicate the nature of the trip. If a trip begins at home, the District will reimburse the mileage from home to destination and return mileage. District insurance does not cover personal vehicles while they are being driven on District business. The reimbursement rate is inclusive of an allowance for insurance costs. The District will reimburse Directors for the deductible under their personal insurance policy should they be involved in an accident while on District business. To be eligible for reimbursement, each Director shall maintain a current California driver’s license and at least the minimum vehicle liability insurance required by State law or shall arrange for a driver who meets said standards. The District will not reimburse the cost of travel of a personal nature taken in conjunction with travel on official business. Claim forms shall be submitted within 45 calendar days after the meeting date. Expense claims requiring reimbursement to the District which are not reconciled within 45 calendar days, shall be deducted from the next month’s reimbursement. No information on the Per Diem Claim Form may be designated as confidential in nature. All expenses must be fully disclosed on the form. OTAY WATER DISTRICT BOARD OF DIRECTORS TRAVEL REQUEST FORM Director: Date of Request: Name and Location of Function: Date(s) function to be held: - Sponsoring Organization: Request for Prepayment of Fees Related to the Function: Expense Type Not Needed Pre-Payment Requested Registration Airline Auto Rental Mileage N/A Taxi/Shuttle N/A Lodging Meals N/A Other Expenses – Explain Below Lodging Preference: Explanation of Other Expenses: Signature of Director Date of Request For Office Use Only Below This Line Date of Board Approval: Expense Type Description Amount Pre-Paid Registration Airline Auto Rental Mileage N/A Taxi/Shuttle N/A Lodging Meals N/A Other Expenses District Secretary Date Processed EXHIBIT C OTAY WATER DISTRICT BOARD OF DIRECTORS EXPENSE CLAIM FORM Pay To: Period Covered: Employee Number: From: To: ITEMIZED REIMBURSEMENT CLAIMED Date Type of Reimbursement Amount TOTAL Reimbursement Claimed: $ Director Signature: Date: GM Receipt: Date: INSTRUCTIONS ON REVERSE EXHIBIT D INSTRUCTIONS FOR PREPARATION OF BOARD OF DIRECTORS EXPENSE CLAIM FORM The necessary expenses incurred while traveling on District business including common carrier fares (economy class), automobile rental charges, District business telephone calls, lodging, baggage handling, parking fees, meals, etc. will be reimbursed when documented on the Director's Per Diem and Expense Claim Forms. Receipts must be attached for all meal expenses. If a receipt is lost, the lost receipt should be noted next to the expense and submitted to the President before any reimbursement can be made. Receipts are required for the reimbursement of all expenses. All receipts must have the nature of the expense and the business purpose noted on the receipt. The District will not reimburse the cost of travel of a personal nature taken in conjunction with travel on official business. Meals shall be reimbursed as per section 3, Meals and Lodging, of this policy (Policy 8). Any receipts that include costs of personal travel (e.g., hotel receipt for employee and spouse) should identify what the cost would have been without personal travel (e.g., single room rate as opposed to double room rate). Claim forms shall be submitted within 45 calendar days after the expense was incurred. Expense claims requiring reimbursement to the District which are not reconciled within 45 calendar days, shall be deducted from the next month’s reimbursement. No information on the Expense Claim Form may be designated as confidential in nature. All expenses must be fully disclosed on the form. The following expenses are not reimbursable: a. Alcoholic Beverages d. Laundry service b. Parking or traffic violations e. Entertainment or recreation c. In-room movies f. Expenses incurred by spouses, family members, or guests. ND: 4840-9653-1715, v. 2 EXHIBIT D Exhibit E Board of Directors Meetings Attended Form Director Name: Period Covered: From: To: Item No. Date Meeting Attended Description 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. -Instructions on Reverse - Exhibit E Instructions for the Preparation of the Board of Directors Meetings Attended Form 1. Enter the period (dates) of the meetings that will be reported on the form. 2. Record the date, name/purpose of meeting, and issues discussed at the meeting(s) attended on behalf and expense of the District. Board of Directors Meetings Attended Forms shall be submitted to the District Secretary prior to or on the date of the next regular board meeting that follows the dates of the meetings reported on this form. No information on the form may be designated as confidential in nature. This form will be filed with the minutes of the meeting and become part of the board records. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/3/24 Page 1 of 7 Purpose To provide guidelines for payment of compensation and reimbursement of expenses to Directors in connection with their attendance at meetings or the performance of other authorized business, and for group insurance benefits for Directors. Background Members of the Board of Directors (“Directors”) attend regular, adjourned or special meetings of the Board of Directors (“Board”). In addition, Directors attend other District meetings, committee meetings, association meetings, and educational seminars on behalf of the District. These meetings and seminars are related to District business, water and wastewater, water and wastewater related issues, and California special districts. State statutes authorize District payments for attendance at meetings and reimbursements of expenses incurred. State law also authorizes the District to provide health and welfare benefits for active Directors and, in limited circumstances, retired Directors if they served 12 years and were first elected prior to January 1, 1995. The District is also authorized to offer health and welfare benefits for retired Directors who commenced office on or after January 1, 1995, if the recipient participates on a self-pay basis. Policy The District will compensate Directors on a per diem basis for attendance at authorized meetings or functions and will reimburse Directors for reasonable expenses incurred while traveling on District business to include, lodging, dining, transportation and related incidentals. A. Directors’ Per Diem As provided in Section 1.01 C. of the District Code of Ordinances,each Director shall receive a per diem in the amount of $173(effective July 1, 2023) for each day of attendance at meetings ofthe Board or for each day of service rendered as a Director byrequest or authorization of the Board, not to exceed a total often (10) days in any calendar month. Attendance at any meeting shown on Exhibit A to this Policy shall be deemed a meetingrequested or authorized by the Board. Attendance at meetings shall be in accordance with Exhibit A. The President of the Board or theBoard may authorize a Director to attend meetings not listed inExhibit A when the President or the Board determines that it is inthe interest of the District that a Director attend, and that suchattendance be compensated and expenses reimbursed. Director’sclaims for per diem amounts shall be made on a “Board of DirectorsPer Diem and Mileage Claim Form” (Exhibit B). The President of theBoard or the Board may approve reimbursement of expenses outsidethe per diem limit for a Director if the Director submits receipts for all of the related District business expenses. Exhibit 2 OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/3/24 Page 2 of 7 The Board President or the Board of Directors may restrict a Director’s ability to receive a per diem for meeting attendance if the Director engages in misconduct. Said restriction may apply to pre-approved meetings as listed on Attachment A of this policy. (Please see Board Policy 40: Ethics.) Attendance at a meeting that is not authorized by this policy (pre- approved meetings) or pre-approved by the President may be approved by the Board for per diem compensation. Director’s seeking per diem compensation for these meetings shall request that the item be presented to the Board at its next regularly scheduled meeting for consideration. The decision of the Board shall be final. When travel arrangements require a day earlier arrival or a day later departure, Directors will be eligible for the $173 per diem and reasonable expenses associated with the extended stay will be reimbursed as specified below. B. Pre-payment of Otherwise Reimbursable Expenses The Director may request pre-payment of registration, transportation, and lodging, using the “Board of Directors Travel Request Form” (Exhibit C). Pre-payments shall be limited to the Director’s expenses only. No advances shall be made on travel expenses. C. Reimbursement of Expenses Each Director shall be reimbursed for travel expenses to and from the meetings described in Exhibit A or for any other authorized District business as follows: 1. Authorization Travel associated with the attendance of meetings or functions for Directors shall be approved in advance by the Otay Water District Board President. To request approval of travel, the Director should complete a “Board of Directors Travel Request Form” (Exhibit B) in order to be eligible for compensation and/or reimbursement. Travel requests will be reviewed and approved by the Board President or the Board. 2. Transportation a. Air Transportation The District will endeavor to purchase airline tickets in advance taking advantage of discounts and low airfares. b. Automobile 1. Personal Auto: Directors may use their personal vehicle. The District will reimburse Directors at the current rate/mile as established by the IRS, OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/3/24 Page 3 of 7 plus tolls, parking, etc., provided, however, if air transportation is available, the total amount of expense paid shall be limited to the cost of coach air travel between points traveled by personal vehicle. Gasoline, collision and liability insurance, and maintenance will be provided by the Director and is deemed covered in the rate/mileage reimbursement. Directors using personal vehicles on District business must maintain a valid California driver’s license and the automobile insurance coverage required by the State of California, or make arrangements for a driver who meets the above requirements. 2. Rental Cars: The District will provide a rental car when needed. Such rental car shall be a compact or mid-size class, unless upgrades are offered at no additional cost to the District. c. Miscellaneous Transportation Whenever practicable, bus, taxi, rail, shuttle, etc. transportation may be used in lieu of, or in conjunction with, the modes above. 3. Meals and Lodging a. Meals and Beverages Whenever travel requires meals, the meals, excluding gratuity, shall be reimbursable, provided the Director presents a receipt along with the “Board of Directors Expense Claim Form” (Exhibit D) for all meals. Reimbursements for expense items where a receipt has been lost will not be paid until the President or the Board has reviewed and approved the expense item. Meals are reimbursable based on the Meals and Incidental Expenses (M&IE) as updated by the U.S. General Services Administration: 1. Full Day Reimbursement When a Director is traveling for a full day and no meals are provided for by other sources, such as pre-paid registration, the Director may be reimbursed for meal expenses at the rate provided by the M&IE per day. This amount is exclusive of any gratuities. 2. Single Meal Reimbursement When a Director requires reimbursement for a single meal while traveling, the maximum meal OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/3/24 Page 4 of 7 reimbursement amount shall be at a rate provided by the M&IE for Breakfast, lunch, and/or dinner, or amounts determined by the President or the Board to be reasonable for the occasion or circumstances. These amounts and any amount approved by the President or Board shall exclude gratuities. 3. Partial Day Reimbursement When a Director will be traveling for a partial day or where a single meal is provided for by other sources such as pre-paid registration, the maximum reimbursement amount shall be at the rate provided by the M&IE per meal, or such other amounts as may be determined by the President or the Board to be reasonable for the occasion or circumstances. In any event all amounts to be reimbursed shall exclude any gratuities. 4. Taxes The maximum meal reimbursement amounts are inclusive of and assume expenses for taxes. The maximum meal reimbursements shall exclude any and all gratuities. b. Lodging The District will reimburse Directors or pre-pay accommodations in single rooms at conference facilities or in close proximity when applicable. Or, in the absence of conference accommodations, normal single-room business, government or commercial class accommodation may be obtained. Under normal circumstances, lodging will not be reimbursed for the night before a conference starts and the night after it ends. However, in situations where available travel schedules would require the Director to leave home before 6:00 AM or return to home after 12:00 AM, lodging for the night before or the night after will be reimbursable. 4. Entertainment The District shall not cover any expenses incurred for recreation or entertainment. 5. Incidental Expenses Unavoidable, necessary, and reasonable authorized expenses will be fully reimbursed by the District. Some examples of allowable expenses are: OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/3/24 Page 5 of 7 a. Reasonable transportation to local restaurants and to optional functions that are a part of conference events. b. Parking fees. c. The following expenses are not reimbursable: 1. Alcoholic beverages 2. Parking or traffic violations 3. In-room movies or laundry services 6. Directors’ Responsibility a. Directors must submit a detailed “Board of Directors Expense Claim Form” for reimbursement. Claim forms should be supported by vouchers and itemized receipts of expenditures for which reimbursement is being requested. Receipts must be attached for all expenses. If a receipt is lost, the lost receipt must be noted on the “Board of Directors Expense Claim Form” (Exhibit D) and approved by the President or the Board before any payment can be made. Claim forms shall be submitted within 45 calendar days after the expense was incurred. Expense claims requiring reimbursement to the District, which are not reconciled within 45 calendar days, shall be deducted from the next month’s reimbursement. b. Expenses will not be reimbursed for meetings that have been pre-paid and not attended. The President or the Board may excuse an absence for a meeting. The absent Director shall provide a verbal or written report at the next regularly scheduled Board meeting stating the reason for the absence and, if appropriate, request that it be excused. Directors will be required to reimburse the District for any pre-paid expenses for any unexcused absence. This reimbursement will be made by deduction from future expenditures. c. When two (2) or more Directors combine an expense on one receipt, the Director requesting reimbursement should indicate, on or attached to the Director’s “Board of Directors Expense Claim Form” the identity of the other persons sharing expenses. This will facilitate appropriate allocation of expenses to each participant. d. Expenses incurred by a Director, other than reimbursable expenses, including, but not limited to expenses of the Director’s spouse, family members, or guests are the responsibility of the Director. e. Each Director shall provide a brief report on meetings OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/3/24 Page 6 of 7 attended at the expense of the District at the next regular meeting of the Board of Directors [Government Code Section 53232.3(d)]. The report may be provided verbally during the “Directors Reports” section of the meeting or submitted in writing to the District Secretary on the “Board of Directors Meetings Attended Form” (Exhibit E). Written reports will be filed with the minutes of the meeting and become part of the board records. f. All documents related to reimbursable District expenditures are public records subject to disclosure under the California Public Records Act. [Government Code Section 53232.3(d)]. g. The District shall, at least annually, provide a report to disclose any reimbursement paid by the District within the immediately preceding fiscal year of at least $100 for each individual charge for services or product received. “Individual charge” (as defined in California Government Code Section 53065.5) includes, but is not limited to, one meal, lodging for one day, transportation, or a registration fee. D. District Group Insurance Benefits 1. Each Director, while serving as a member of the Board of Directors, shall be entitled to the health and welfare and life insurance benefits set forth in the Schedule of Benefits in the District Group Insurance Plan Booklet, which benefits are furnished by the District at District cost, with applicable contributions, for active District employees and Directors. Each active Director shall also be entitled to a $65,000 term life and accidental death and dismemberment insurance policy (subject to policy requirements and any standard age reduction schedule), a $100,000 travel accidental death and dismemberment policy. In addition to the foregoing, the District will pay premiums for additional individual life insurance coverage in an amount of up to $250,000 for a 20 year term for those active Directors who apply for such coverage with the District’s provider and meet the provider’s standard underwriting guidelines and policy requirements. If coverage at higher amounts or for a longer term is made available by the provider, each Director may purchase such additional coverage on a self-pay basis. 2. Each former member of the Board of Directors, who served in office after January 1, 1981, who was elected to a term of office that began before January 1, 1995, who is at least 60 years of age, and whose total service at the time of OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/3/24 Page 7 of 7 termination is not less than 12 years, shall be entitled to the health and welfare and life insurance benefits set forth in the District Group Insurance Plan Booklet, which benefits are furnished by the District, at District cost, for retired Directors. E. Miscellaneous 1. The General Manager shall submit the District’s organizational membership list, which the Board shall review annually in January following reorganization of the Board and election of a new President. 2. Cell Phone expenses are not considered a reimbuseable expense. Attachments Exhibit A: Approved Function List Exhibit B: “Board of Directors Per Diem and Mileage Claim Form” Exhibit C: “Board of Directors Travel Request Form” Exhibit D: “Board of Directors Expense Claim Form” Exhibit E: “Board of Directors Meetings Attended Form” EXHIBIT A Approved Functions List Board Policy for payment of per diem compensation and expenses for Director attendance at District meetings: The Board reviews its authorization and policy for payment of per diem compensation for pre-approved meetings annually, in January following reorganization of the Board and election of a new President. Below is the current Board policy: 1. The following meetings are pre-approved for all Directors to attend and receive per diem compensation and expense reimbursement: a) Otay Water District Regular and Special Board Meetings b) Otay committee meetings for committee members only c) Otay business meetings called by the General Manager or the Board President, or authorized by the Board President where individual Directors are requested to attend d) Except as otherwise specifically excluded in this policy, official District functions that take place during normal business hours where Directors are requested to attend by either the Board President or the Board e) District sponsored events or events where the District sponsors a table and the Board President or the General Manager extends invitations to Directors to attend the event f) Semi-annual conference of the Association of California Water Agencies g) Regular quarterly meetings of the Water Agencies Association of San Diego County h) Regularly monthly meeting of Council of Water Utilities i) Business meetings and conferences of the California Special District Association held in San Diego County j) Up to four (4) board meetings of the San Diego County Water Authority per calendar year k) Up to one (1) board meeting of the Metropolitan Water District per calendar year l) Business or Board Meetings of regional and/or local Chambers of Commerce, where the District maintains a membership or whose geographical area includes the District’s service area, and the meeting includes discussions that are water and wastewater-industry related All other meetings not listed here require pre-approval by the President or Board for Directors to receive per diem compensation and/or expense reimbursement. EXHIBIT A 2. The following meetings are pre-approved for designated Otay Director representatives or designated alternate. The District Secretary will maintain an updated list of designated Director representatives. Any other Director who wishes to attend these meetings and receive a per diem must have approval from the President or Board prior to the event or be designated by the President or Board, as an alternate. The pre-approval shall include the attendance of the Director at the commission, committee, board or meeting and any committee, subcommittee or other official or posted meeting of the agencies, commissions, committees or boards listed below: a) Planning Group and government agency meetings that fall within the boundaries of each Directors district (when issues impacting OWD are discussed) b) Inter-Agency Committee Meeting c) METRO (TAC/AFFORD) Commission d) ACWA or CSDA meetings/conferences e) Water Conservation Garden f) WateReuse Association g) South County Economic Development Council 3. The Board President or his designee is pre-authorized to attend District business meetings with cities and other agencies to represent Otay Water District and may claim a per diem and expenses. Any other Director desiring to attend the same meeting of this nature would require approval to attend from the President or the Board in order to receive a per diem and expense reimbursement. 4. When the President or the Board appoints a Director(s) to a committee, the meeting(s) shall be considered pre-approved for per diem and expense reimbursement. 5. The following meetings are not eligible for pre-approved per diem claims: a) Attending other Districts’ Board meetings, unless there is a matter on their agenda that is related to Otay business b) Otay employee appreciation breakfast, luncheons or dinners c) Retirement receptions d) Otay picnics or dinner-dances or other purely social events e) If a per diem reimbursement is offered by another agency (i.e. San Diego County Water Authority and the Metro Commission) f) First Friday Breakfasts unless presenting Otay official business to the assembly EXHIBIT A g) Any political campaign event or function 6. In order to submit a per diem/travel reimbursement the member must attend at least 50% of the meeting (per day) and the reimbursement request must be submitted within 45 days of the occurrence, otherwise it may be considered attended without per diem. The President of the Board will make the final determination. 7. All other meetings/conferences/tours/seminars/ workshops/functions not listed in this policy must be pre-approved by the Board President or the Board. EXHIBIT B (Director’s Signature) GM Receipt: Date: FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ INSTRUCTIONS ON REVERSE OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To: Period Covered: Employee Number: From: To: ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED MILEAGE HOME to OWD OWD to HOME MILEAGE OTHER LOCATIONS Total Meeting Per Diem: $ ($173 per meeting) Total Mileage Claimed: miles EXHIBIT B INSTRUCTIONS FOR PREPARATION OF BOARD OF DIRECTORS PER DIEM CLAIM FORM 1. Record the date, and name or purpose/issues discussed of meeting attended on behalf of the District. Note: The District will pay Director's per-diem for one meeting/ function per day and the maximum of 10 meetings/functions per month. If a Director attends more than 10 meetings/functions (10 days), the District will reimburse for the mileage and any reimbursable out-of-pocket expenses incurred for these additional meetings. 2. Record number of miles (round trip) driven to attend meeting/function. The use of personal vehicles in the conduct of official District business shall be reimbursed at the current Internal Revenue Service rate. The Director's expense claim should indicate the nature of the trip. If a trip begins at home, the District will reimburse the mileage from home to destination and return mileage. District insurance does not cover personal vehicles while they are being driven on District business. The reimbursement rate is inclusive of an allowance for insurance costs. The District will reimburse Directors for the deductible under their personal insurance policy should they be involved in an accident while on District business. To be eligible for reimbursement, each Director shall maintain a current California driver’s license and at least the minimum vehicle liability insurance required by State law or shall arrange for a driver who meets said standards. The District will not reimburse the cost of travel of a personal nature taken in conjunction with travel on official business. Claim forms shall be submitted within 45 calendar days after the meeting date. Expense claims requiring reimbursement to the District which are not reconciled within 45 calendar days, shall be deducted from the next month’s reimbursement. No information on the Per Diem Claim Form may be designated as confidential in nature. All expenses must be fully disclosed on the form. OTAY WATER DISTRICT BOARD OF DIRECTORS TRAVEL REQUEST FORM Director: Date of Request: Name and Location of Function: Date(s) function to be held: - Sponsoring Organization: Request for Prepayment of Fees Related to the Function: Expense Type Not Needed Pre-Payment Requested Registration Airline Auto Rental Mileage N/A Taxi/Shuttle N/A Lodging Meals N/A Other Expenses – Explain Below Lodging Preference: Explanation of Other Expenses: Signature of Director Date of Request For Office Use Only Below This Line Date of Board Approval: Expense Type Description Amount Pre-Paid Registration Airline Auto Rental Mileage N/A Taxi/Shuttle N/A Lodging Meals N/A Other Expenses District Secretary Date Processed EXHIBIT C OTAY WATER DISTRICT BOARD OF DIRECTORS EXPENSE CLAIM FORM Pay To: Period Covered: Employee Number: From: To: ITEMIZED REIMBURSEMENT CLAIMED Date Type of Reimbursement Amount TOTAL Reimbursement Claimed: $ Director Signature: Date: GM Receipt: Date: INSTRUCTIONS ON REVERSE EXHIBIT D INSTRUCTIONS FOR PREPARATION OF BOARD OF DIRECTORS EXPENSE CLAIM FORM The necessary expenses incurred while traveling on District business including common carrier fares (economy class), automobile rental charges, District business telephone calls, lodging, baggage handling, parking fees, meals, etc. will be reimbursed when documented on the Director's Per Diem and Expense Claim Forms. Receipts must be attached for all meal expenses. If a receipt is lost, the lost receipt should be noted next to the expense and submitted to the President before any reimbursement can be made. Receipts are required for the reimbursement of all expenses. All receipts must have the nature of the expense and the business purpose noted on the receipt. The District will not reimburse the cost of travel of a personal nature taken in conjunction with travel on official business. Meals shall be reimbursed as per section 3, Meals and Lodging, of this policy (Policy 8). Any receipts that include costs of personal travel (e.g., hotel receipt for employee and spouse) should identify what the cost would have been without personal travel (e.g., single room rate as opposed to double room rate). Claim forms shall be submitted within 45 calendar days after the expense was incurred. Expense claims requiring reimbursement to the District which are not reconciled within 45 calendar days, shall be deducted from the next month’s reimbursement. No information on the Expense Claim Form may be designated as confidential in nature. All expenses must be fully disclosed on the form. The following expenses are not reimbursable: a. Alcoholic Beverages d. Laundry service b. Parking or traffic violations e. Entertainment or recreation c. In-room movies f. Expenses incurred by spouses, family members, or guests. ND: 4840-9653-1715, v. 2 EXHIBIT D Exhibit E Board of Directors Meetings Attended Form Director Name: Period Covered: From: To: Item No. Date Meeting Attended Description 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. -Instructions on Reverse - Exhibit E Instructions for the Preparation of the Board of Directors Meetings Attended Form 1. Enter the period (dates) of the meetings that will be reported on the form. 2. Record the date, name/purpose of meeting, and issues discussed at the meeting(s) attended on behalf and expense of the District. Board of Directors Meetings Attended Forms shall be submitted to the District Secretary prior to or on the date of the next regular board meeting that follows the dates of the meetings reported on this form. No information on the form may be designated as confidential in nature. This form will be filed with the minutes of the meeting and become part of the board records. STAFF REPORT TYPE MEETING: Regular Board Meeting MEETING DATE: April 3, 2024 SUBMITTED BY: Tita Ramos-Krogman, District Secretary W.O./G.F. NO: DIV. NO. APPROVED BY: Tita Ramos-Krogman, District Secretary Jose Martinez, General Manager SUBJECT: Board of Directors 2024 Calendar of Meetings GENERAL MANAGER’S RECOMMENDATION: At the request of the Board, the attached Board of Director’s meeting calendar for 2024 is being presented for discussion. PURPOSE: This staff report is being presented to provide the Board the opportunity to review the 2024 Board of Director’s meeting calendar and amend the schedules as needed. COMMITTEE ACTION: N/A ANALYSIS: The Board requested that this item be presented at each meeting so they may have an opportunity to review the Board meeting calendar schedule and amend it as needed. STRATEGIC GOAL: N/A FISCAL IMPACT: None. LEGAL IMPACT: None. Attachment: Calendar of Meeting for 2024 AGENDA ITEM 7a Board of Directors, Workshops and Committee Meetings 2024 Regular Board Meetings: Special Board or Committee Meetings (3rd Wednesday of Each Month or as Noted) January 3, 2024 February 7, 2024 March 6, 2024 April 3, 2024 May 1, 2024 June 5, 2024 July 3, 2024 August 7, 2024 September 4, 2024 October 2, 2024 November 6, 2024 December 4, 2024 January 17, 2024 February 21, 2024 March 20, 2024 April 18, 2024 May 15, 2024 June 19, 2024 July 17, 2024 August 21, 2024 September 18, 2024 October 16, 2024 November 20, 2024 December 18, 2024 Special Board Meeting: April 24, 2022, 12:00 p.m. to 2:30 p.m. 1 STAFF REPORT TYPE MEETING: Regular Board Meeting MEETING DATE: April 3, 2024 SUBMITTED BY: Tenille M. Otero PROJECT: Various DIV. NO. All APPROVED BY: Jose Martinez, General Manager SUBJECT: 2024 Legislative Program Policy Guidelines and Top 10 Legislative and Regulatory Priorities GENERAL MANAGER’S RECOMMENDATION: That the Board of Directors adopt the 2024 Otay Water District Legislative Program Policy Guidelines and the anticipated 2024 Top 10 Legislative and Regulatory Priorities. COMMITTEE ACTION: See Attachment A. PURPOSE: To provide direction to staff and the Otay Water District’s legislative advocates in the formulation of the District’s response to legislative initiatives on prominent issues that could impact the District and/or other local water agencies. To present to the Board of Directors with the anticipated 2024 Legislative Program Priorities, which staff and legislative advocates will proactively monitor and/or act on during the 2024 legislative session and throughout the year. ANALYSIS: The Otay Water District maintains a set of legislative policy guidelines to direct staff and its legislative advocates on issues important to the District. Staff updates the legislative guidelines annually and/or as needed with the proposed updates presented to the District’s Board of Directors for review, comment, and adoption. The 2024 Legislative Program represents policy guidelines on legislation for the Board’s consideration. Normally, representatives to the California Legislature introduce 2,000 or more bills or significant resolutions. While many bills fail to make it out of their house of origin, many others move on to be signed by the governor and become law. These new laws can AGENDA ITEM 8a 2 fundamentally affect special districts. The same is true with each session of the House of Representatives and the U.S. Senate. The 2024 Legislative Program establishes guidelines and policy direction that staff and the District’s legislative advocates can use when monitoring legislative activity to facilitate actions quickly in response to proposed bills or issues. The guidelines provide a useful framework for staff and legislative advocates when evaluating the potential impact of state or federal legislation on the District. This is particularly helpful when a timely response is necessary to address last-minute amendments to legislation, District participation in coalitions on issues, and should calls or letters of support or opposition be needed. Legislation that does not meet the guidelines as set forth or that has potentially complicated or varied implications, will not be acted upon by staff or the District’s legislative advocates, and will instead be presented to the Board directly for guidance in advance of any position being taken. The San Diego County Water Authority has its own set of legislative policy guidelines that is a comprehensive program at a wholesale and regional level. District staff has evaluated policies and issues from the Water Authority’s guidelines that may have a direct or indirect impact on the District. Staff has incorporated these policies and issues into the District’s guidelines. Although the District is a retail agency and is focused on its local service area, if there are issues or polices incorporated in the Water Authority’s legislative policy guidelines that could benefit or impact the District, the General Manager, District staff, and the District’s legislative advocates may act on those issues, respectively. The 2024 Legislative Program Policy Guidelines presents staff’s recommendations for the Board’s review and seeks the Board’s feedback for any additional modifications. Staff will then incorporate the Board’s recommendations into the final document. In general, the guidelines look to protect the District’s interest in a reliable, diverse, safe, and affordable water supply. Moreover, they seek to maintain local control over special district actions to protect the Board’s discretion and ratepayers’ interests and maintain the ability to manage District operations effectively and efficiently. In addition, they express the District’s ongoing support for financial assistance to water agencies and customers regarding nonpayment due to financial hardships related to the pandemic and other factors, water-use efficiency, recycled water, seawater desalination, capital improvement project development, organization- wide safety and security, binational cooperation, climate change, and funding. These guidelines also demonstrate the District’s strong and collaborative support and efforts to advocate against a “one-size- 3 fits-all” approach and any unfunded mandates by legislation or regulation. The proposed redlined 2024 Legislative Program Policy Guidelines are included in Attachment B. A clean copy of the proposed changes is included in Attachment C. When the Board adopts the updated guidelines, staff will incorporate recommended changes by the Board into the final document. In addition, staff is presenting the District’s anticipated Top 10 Legislative Priorities for the year (Attachment D). This list highlights, in no specific order, legislation or issues that District staff and/or the Water Authority is currently monitoring and/or may take or has already taken a position on. The deadline for bill introduction was February 16, 2024. Typically, lobbyists and legislative staff wait until the last couple of days leading up to the deadline, and then hundreds of bills will be introduced. Based on the bills/issues that legislators introduced by this year’s deadline, staff worked with the District’s legislative consultant to develop a list of priority issues for 2024. The anticipated top 10 priorities, include: 1. Affordability and Proposition 218 2. Water Bonds and Infrastructure 3. Recycled Water and Potable Reuse 4. Water Use and Efficiency 5. Water Quality and Contaminants 6. Advanced Clean Fleets Rulemaking Implementation 7. Drought and Extreme Weather Response 8. State Budget Funding 9. State Water Project/Delta Conveyance 10. Water Rights Modernization Staff and the District’s consultant will continue to monitor those bills and issues that may affect the District. Staff will update the Board as necessary throughout the year to provide updates on legislative issues impacting the District. District staff continues to proactively work with the Water Authority’s government relations staff, the District’s legislative consultant, the Association of California Water Agencies, California Special Districts Association, California Water Efficiency Partnership, California Municipality Utilities Association, and other related coalitions, associations, and organizations to monitor legislative issues that affect the District and its ratepayers. It is critical that District and its staff remain engaged in these issues as they could have an impact on how the District conducts day-to-day operations and operates and maintains its facilities, thus affecting its ratepayers. 4 FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. STRATEGIC GOAL: Execute and deliver services that meet or exceed customer expectations, and increase customer engagement in order to improve District Services. Enhance and build awareness and engagement among the District’s customers and stakeholders and within the San Diego Region about the District’s strategies, policies, projects, programs, and legislative/regulatory issues. LEGAL IMPACT: None. Attachments: • Committee Action • Proposed 2024 Otay Water District Legislative Program Policy Guidelines (Redlined) • Proposed 2024 Otay Water District Legislative Program Policy Guidelines (Clean Copy) • Anticipated Top 10 Legislative Priorities for 2024 • Presentation “Anticipated Top 10 Legislative for 2024” – Brownstein, Hyatt, Farber and Schreck 5 ATTACHMENT A SUBJECT/PROJECT: 2024 Legislative Program Policy Guidelines and Top 10 Legislative and Regulatory Priorities COMMITTEE ACTION: The Conservation, Public Relations, Legal and Legislative Committee (Committee) reviewed this item at a meeting held on March 19, 2024, and the following comments were made: • Staff discussed the purpose of the 2024 Legislative Program Policy Guidelines and presented the guideline updates to the committee. • Staff introduced Mr. Baltazar Cornejo and Mr. Keshav Kumar from Brownstein, Hyatt, Farber and Schreck (BHFS) to provide a PowerPoint Presentation of the top 10 legislative and regulatory priorities for 2024 to the Committee. • Mr. Keshav discussed the State Water Board’s updated MCL Calendar and their plan to have as many MCLs adopted in 2024. • There was an additional update to Affordability and Proposition 218. It was noted that federal legislation introduced H.R. 7525 (Fallon and Pettersen) on March 5, 2024. It requires federal agencies to recognize special districts as local governments for the purpose of ensuring that districts are eligible to receive appropriate forms of federal assistance, including funding and resources through key grant programs. This would be the first time that federal law would codify a formal definition of a special district. • In response to a question from the Committee, Mr. Baltazar stated that the Low-Income Household Water Assistance Program (LIHWAP) is funded federally and then passed through to the state and managed by the California Department of Community Services and Development. A 6 background of LIHWAP and its business process was provided to the Committee. It was noted that Senator Alex Padilla is trying to create a permanent program to help low-income households across the United States. • In response to a question from the Committee regarding the three bills introduced to address issues with Proposition 218, legal counsel stated that special districts are seeking clarification of “reimbursement” which is not in the law. Mr. Baltazar indicated that Senate Bill 1072 (Padilla), sponsored by Otay Water District, is anticipated to go to the April hearing. Currently, BHFS is working on revising the bill to incorporate language amendments from the district’s legal counsel, special districts, League of Cities, and city of San Diego. • It was noted that approximately 25% of the state’s budget is allocated towards water bonds and infrastructure. • The Committee inquired about the State Water Project’s allocation, which Mr. Baltazar indicated is currently 15%. By the end of the allocation period, May or June, the allocation will be higher. • Staff highlighted the Cross Connection Control Policy Handbook that replaces portions of Title 17 that address cross connection and backflow regulation. Staff explained the requirements of the new regulation, which is estimated to impact approximately 3,200 homes in the District’s service area. Staff plans to send out a notification of the new regulations and requirements to BIA and developers. Following the discussion, the Committee supported staff’s recommendation and presentation to the full Board as an action item. Otay Water District Legislative Program 20232024 1 | P a g e Effective Date: 04/0503/20232024 Legislative Program Policy Guidelines Purpose The Otay Water District’s 2023 2024 legislative policy guidelines provide direction to staff and the District’s legislative advocates when they evaluate proposed legislation that may affect the District, other local water agencies, or regional water management and use. Legislation that meets or fails to meet, the principles set forth in the guidelines may be supported or opposed accordingly. The guidelines permit the General Manager, District staff, and the District’s legislative advocates to act in a timely fashion between Board meetings on issues that are clearly within the guidelines. While the title of this document suggests these policy guidelines are applicable solely to state and federal legislative issues reviewed by the District and its wholesale supplier the San Diego County Water Authority (Water Authority), increasingly state and federal regulatory and administrative bodies are developing rules, guidelines, white papers, and regulations that can significantly affect the District, its wholesale supplier, and other local water agencies. District staff, including the District’s legislative consultant, often utilize these Legislative Policy Guidelines to provide guidance on emerging and active regulatory and administrative issues. . Legislation that does not meet the principles set forth in the guidelines or that has potentially complicated or varied implications will not be acted upon by staff or the legislative advocates in between Board meetings and will instead be presented to the Board directly for guidance in advance of any position being taken. The Water Authority has its own set of legislative guidelines that is a comprehensive program at a wholesale and regional level. District staff has evaluated and selected policies and issues from the Water Authority’s guidelines that may have a direct impact on the District. These policies and issues have been incorporated into the District’s guidelines. Although the District is a retail agency and is focused on its local service area, if there are issues or polices contained in the Water Authority’s Legislative Policy Guidelines that could benefit or impact the District, the General Manager, District staff, and the District’s legislative advocates may act on those issues, respectively. Attachment B Otay Water District Legislative Program 20232024 2 | P a g e Table of Contents The Otay Water Legislative Policy Program Guidelines for 2023 includes the following categories: I.Binational Issues…………………………………………....……………... Page 3 II.Biological and Habitat Preservation…………………………………….. Page 3 III.Desalination……………………………………………………………….. Page 4 IV.Drought Responseand Extreme Weather Response…………………… Page 4 V.Energy……………………………………………………………………… Page 5 VI.Financial Issues…………………………………………………………… Page 6 A.Fees, Taxes, and Charges………………………….......................... Page 6 B.Funding…………………………………………………………….. Page 8 C.Rates………………………………………………………………... Page 10 D.Water Bonds……………………………………………………….. Page 101 E.Affordability……………………………………………………. Page 121 VII.Governance and Local Autonomy……………………………………….. Page 12 VIII.Imported Water Issues……………………………………………………. Page 14 A.Bay-Delta……………………………………………………………… Page 14 i.Co-equal Goals……………………………………………………. Page 14 ii.Bay-Delta Conveyance Project…………………………………… Page 154 B.Metropolitan Water District…………………………………………… Page 15 C.Colorado River………………………………………………………… Page 156 D.State Water Project…………………………………………………….. Page 167 IX.Optimize District Effectiveness……………………...…………....………. Page 17 X.Safety, Security, and Information Technology……………....................... Page 178 XI.Water Quality Issues………………………………………………………. Page 18 XII.Water Recycling and Potable Reuse……………………………………… Page 19 XII.XIII.Water Rights Modernization………………………………………………Page 21 XIII.XIV.Water Service and Facilities……………………………………………… Page 211 XIV.XV.Water- Use and Efficiency……………………………………………………… Page 25 XV.XVI.Workforce Development………………………………………………….. Page 27 Otay Water District Legislative Program 20232024 3 | P a g e I.Binational Issues Support initiatives that: 1.Promote and provide funding for cross-border water supply and infrastructure development projects to serve the San Diego/Baja California border region while protecting local interests. 2.Encourage enhanced cooperation between entities in San Diego and Baja California in development of supply and infrastructure projects that will benefit the entire border region. 3.Encourage state and federal funding to support collaborative binational projects to improve water quality and protect human health and the environment within the broader San Diego region. 4.Develop and enhance communications and understanding of the interdependence of communities on both sides of the border with the goal of improved cross-border cooperation. Oppose initiatives that: 1.Would usurp local control over the financing and construction of water supply and infrastructure projects in the San Diego/Baja California region. II.Biological and Habitat Preservation Support initiatives that: 1.Support development of comprehensive multispecies habitat conservation plants that anticipate and mitigate project development impacts while preserving representative ecosystems, rather than individual species. 2.Exempt operation, maintenance, and repair of water system facilities from endangered species and other habitat conservation regulations because they provide beneficial cyclical habitat values to declining species and foster biological diversity in California. 3.Provide environmental regulatory certainty for implementation of existing and proposed long- term water supply programs. 4.Streamline filing of CEQA notices of determination for multicounty water projects by making those notices available on the CEQAnet website through the Governor’s office of Planning and Research. 5.Incorporate an emergency exemption for “take” of a listed species listed under the state or federal Endangered Species Acts when necessary to mitigate or prevent loss of or damage to life, health, property, or essential public services. 6.Encourage species listings, critical habitat designation, and recovery plans developed pursuant to the state or federal Endangered Species Acts to be consistent with existing interstate compacts, tribal treaties, and other state and federal agreements. Oppose initiatives that: 1.Reduce or limit the use of existing water rights or supplies, 2.Restrict the development of future water supplies. 3.Impose endangered species or habitat conservation requirements that restrict the operation, maintenance, or repair of public water supply, conveyance, treatment, or storage facilities. Otay Water District Legislative Program 20232024 4 | P a g e III.Desalination Support initiatives that: 1.Provide funding for seawater desalination studies and facilities. 2.Recognize and support the development of seawater desalination as critical new water supply for the state, including San Diego County. 3.Streamline permitting of desalination facilities. 4.Preserve and protectsprotect potential seawater desalination sites and existing coastal facilities including intake and discharge infrastructure that could be used or reused by a seawater desalination facility. 5.Ensure that desalination intake and discharge regulations are science-based, considering site- specific conditions, and recognizing that not all technologies or mitigation strategies are feasible or cost-effective at every site. IV.Drought and Extreme Weather Response Support initiatives that: 1.Ensure the District and other local agencies including the Water Authority and San Diego County water agencies receive the water supply benefits of investments in local water supply sources. 2.Allow local agencies to achieve compliance with emergency or nonemergency drought regulations or objectives through a combination of water conservation measures and development and implementation of local water supply sources that are not derived from the Delta. 3.Allow forAllow local agencies to account for all water supplies available during droughts and other events when calculating the water supply shortage level. 4.Create a process for development and implementation of emergency drought declarations and regulations that recognizes variations among communities, regions, and counties with respect to their abilities to withstand the impacts and effects of drought. 5.Recognize variations among communities, regions, and counties with respect to their abilities to withstand the impacts and effects of droughts and ensure that any temporary or permanent statutory or regulatory direction for improving water-use efficiency to meet statutory or regulatory goals or standards is focused on regional achievement of objectives rather than a one-size-fits-all approach. 5.6.Unlock federal and state funding to supplement state and local recovery efforts in areas affected by extreme weather. Oppose initiatives that: 1.Disincentivize or impede water agencies from making investments to maximize the potential for recycled water, potable reuse, desalination, and other drought-resilient local water supplies. Otay Water District Legislative Program 20232024 5 | P a g e 2. Create a “one-size-fits-all” approach to emergency drought declarations and regulations that ignores variations among communities, regions, and counties with respect to their ability to withstand the impacts and effects of drought. 2.3.Hinder federal and state funding to supplement state and local recovery efforts in areas affected by extreme weather. V. Energy Support initiatives that: 1. Provide opportunities for reduced energy rates under tariff schedules for the District and other local water agencies. 2. Provide protection to the District and other local water agencies from energy rate increases and provides rate relief for the District and water agencies. 3. Provide funding, including state and federal grants, for in-line hydro-electric, solar, wind, battery storage, biogas, cogeneration, nanogrids, microgrids, closed-loop pumped storage facilities, and other renewable energy generation or storage technology as means of reducing greenhouse gas emissions and energy cost. 4. Promote funding for use of renewable energy in the operation of District facilities. 5. Prohibit investor-owned utilities from implementing rate changes that undercut the financial viability of renewable energy facilities obligated under long-term Power Purchase Agreements. 6. Provide greater flexibility in the utilization of the District’s facilities for electrical generation and distribution, and acquisition of electricityal and natural gas power. 7. Provide the District with greater flexibility in the licensing, permitting, interconnection, construction, and the operation of its existing and potential in-line hydroelectric, solar, wind, battery, nanogrid, microgrid, closed-loop pumped-energy storage projects, and other renewable generation or storage technology. 8. Make SWP power available for all water projects. 9. Promote the classification of electricity generated by in-line hydroelectric and closed-loop pumped-energy storage facilities as environmentally sound. 10. Promote the expansion of closed-loop pumped-energy storage facilities to provide clean and environmentally sound energy resourceresources that provides electric and reliability and resiliency, especially during times of potential blackouts. 11. Promote the expansion of in-line hydroelectric energy recovery systems at treatment facility discharge systems. 12. Promote the production, purchase, delivery, and use of alternative sources of energy on a wholesale basis. 13. Provide clear statutory, regulatory, or administrative authority for the Water Authority to wheel acquired or produced power to itself, the District, or entities with which the Water Authority is under contract for the purchase, treatment, transport, or production of water. Otay Water District Legislative Program 20232024 6 | P a g e 14.Recognize and monetize all grid ancillary services that pumped hydro-energy storage provides and supports fair compensation in the wholesale energy market for such services. 15.Provides timely, efficient, and cost-effective interconnection of new energy loads and resources such as solar, inline hydroelectric, pumped-energy storage, and other renewable energy generation or storage technologies to the electric distribution and transmission grid. 16.Recognize the value of large-scale hydropower and pumped-energy storage facilities in assisting the state to meet its renewable and zero-carbon emission goals of 100 percent % by 2045. Oppose initiatives that: 1.Adversely affect the cost of energy needed to operate MWD’s facilities, SWP facilities, or the facilities of the Water Authority and the District. 2.Impose greenhouse gas reduction obligations on a public water agency for electricity purchased or produced for the sole purpose of operating its system. 3.Adversely affect the ability of the District or other water agencies in the county to own, operate, and/or construct work for supplying its own facilities with natural gas and electricity. 4.Impede the District or other water agencies in the county, the ability to contract for, deliver, and use natural gas or electricity purchased from the United States, the State of California, and any other public agency or private entity and provide, sell, exchange, or deliver the gas or electricity to itself, any public agency or private entity. 5.Reduce the District’s ability to always maintain high operational efficiency. 6.Restrict the District’s ability to expand or improve infrastructure or facilities. 7.Restrict or caps future energy demands needed for possible expansion of recycled water, potable reuse, and/or desalination projects. 8.Adversely affect the District’s ability to expand cogeneration or polygeneration at planned or existing facilities. 9.Inhibit the scientific advancement of energy and water efficient/conserving technologies that may be implemented at the District or other agency facilities. 10.Prevent the District from enhancing energy reliability and independence for its facilities. 11.Do not count or credit qualified renewable energy projects toward accomplishment and satisfaction of the California Renewables Portfolio Standard objectives. 12.Prohibit the Water Authority from wheeling - or securing statutory, regulatory, or administrative authority necessary to wheel - acquired or produced power to itself, the District, or other entities with which the Water Authority is under contract of the purchase, treatment, transport, or production of water. 13.Result in a lengthy, more complicated, or more costly interconnection of new energy loads and resources, such as solar, inline-hydroelectric, pumped-energy storage, and other renewable energy generation or storage technologies to the electric distribution and transmission grid. Otay Water District Legislative Program 20232024 7 | P a g e VI.Financial Issues A.Fees, Taxes, and Charges Support initiatives that: 1.Require the federal government and State of California to reimburse special districts for all mandated costs or regulatory actions. 2.Give special districts the discretion to cease performance of unfunded mandates. 3.Provide forProvide fiscal reform to enhance the equity, reliability, and certainty of special district funding. 4.Provide incentives for local agencies to work cooperatively, share costs or resources. 5.Provide for the stable, equitable, and reliable allocation of property taxes. 6.Continue to reform workers compensation. 7.Promote competition in insurance underwriting for public agencies. 8.Produce tangible results, such as water supply reliability or water quality improvement. 9.Require the Metropolitan Water District of Southern California (MWD) to refund or credit to its member agencies revenues collected from them that result in reserve balances greater than the maximum reserve levels established pursuant to state legislation. Oppose initiatives that: 1.Impose mandated costs or regulatory constraints on local agencies and their customers without providing subventions to reimburse local agencies for such costs. 2.Pre-empt the District or local water agencies’ ability to impose or change rates, charges, fees, or assessments. 3.Weaken the protections afforded the District, the Water Authority or other local water agencieswater agencies under California’s Proposition 1A (November 2, 2004). 4.Reallocate special districts reserves to balance the state budget. 5.Reallocate special district revenues or reserves to fund infrastructure improvements or other activities in cities or counties. 6.Establish funding mechanisms that put undue burdens on local agencies or make local agencies de facto tax collectors for the state. 7.Adversely affect the cost of gas and electricity or reduce an organization’s flexibility to take advantage of low peak cost periods. 8.Add new reporting criteria, burdensome, unnecessary, or costly reporting mandates to Urban Water Management Plans. 9.Add new mandates to the Department of Water Resources (DWR) to review and approve Urban Water Management Plans beyond those already addressed in DWR guidelines. 10.Mandate that water agencies include an embedded energy calculation for their water supply sources in Urban Water Management Plans or any other water resources planning or master-planning document. 11.Weaken existing project retention and withholding provisions that limit the ability of public agencies to drive contractor performance. 12.Establish change order requirements that place an unreasonable burden on local agencies, or raise financial risk associated with public works contracts. 13.Impair the Water Authority or its member agencies’ ability to provide reasonable service at reasonable costs to member agencies or to charge all member agencies the same rate for each class of service consistent with cost-of-service requirements of the law. Otay Water District Legislative Program 20232024 8 | P a g e 14. Impair the local water agencies’ ability to maintain reasonable reserve funds and obtain and retain reasonable rates of return on its reserve accounts. 15. Mandate a specific rate structure for retail water agencies. 16. Impose a water user fee on water agencies or water users that does not provide a commensurate and directly linked benefit in the local area or region from which the water user fee is collected. 17. Impose a water user fee for statewide projects or programs, for which the projects or programs are not clearly defined, the beneficiaries identified, and reasonable costs identified. 18. Impose a water user fee to create a state fund that can be used to finance undefined future projects and programs. 19. Allow the state to retain more than five percent5% of water user fees for administrative costs. 20. Do not restrict the use of water user fees to only the specific purposes for which they are imposed, without any possibility of diversion to meet other fiscal needs of the state. 21. Impose a “public goods charge” or “water tax” on public water agencies or their ratepayers. 22. Impose a fee on water users to repay the principal and interest on a statewide general obligation bond. 23. Establish regulatory or permit fees that lack a nexus to the costs of oversight. 24. Establish a broad-based user fee that does not support a specific program activity; any fee must provide a clear nexus to the benefit the fee would provide. B. Funding Support initiatives that: 1. Require the federal and state governments to provide subvention to reimburse local governments for all mandated costs or regulatory actions. 2. Provide the District, the Water Authority, and other local water agencies with additional forms of cost-effective financing for public facilities. 3. Revitalize the Title XVI federal funding program by converting new authorizations to a competitive grant program with congressional oversight while protecting existing Title XVI authorizations for the San Diego region. 4. Provide the District, Water Authority, and local water agencies with grant funding for public facilities, including developing local water resources and rehabilitation and repair of aging infrastructure, such as dams asand pipelines. 5. Provide the District, other local water agencies, and water ratepayers with post-COVID-19 financial relief through a variety of means, including but not limited to, direct financial assistance and flexibility in debt management to assist water ratepayers and water suppliers. . 6. Authorize financing of water quality, water security, and water supply infrastructure improvement programs. 7. Establish spending caps on State of California overhead when administering voter approved grant and disbursement programs. Otay Water District Legislative Program 20232024 9 | P a g e 8. Require disbursement decisions in a manner appropriate to the service in question. 9. Encourage funding infrastructure programs that are currently in place and that have been proven effective. 10. Provide financial incentives for energy projects that increase reliability, diversity, and reduce greenhouse gassesgases. 11. Continue energy rate incentives for the utilization of electricity during low-peak periods. 12. Provide loan or grant programs that encourage water conservation for water users who are least able to pay for capital projects. 13. Provide for population-based distribution of IRWM funds to ensure adequate distribution of grant funding throughout the state. 14. Provide for the use of state grant funds for binational projects where the projects benefit water supply or water quality in the San Diego region. 15. Improve and streamline the state’s reimbursement process to ensure timely remittance of IRWM funds. 16. Promote the ability of the Regional Water Management Group to administer state grant funds specifically identified more directly for IRWM Programs. 17. Require the state to rely on the local process for selection and ranking of projects included in an approved IRWM plan. 18. Provide funding or other incentives for conservation, peak management programs, water recycling, potable reuse, groundwater recovery and recharge, dam repair and rehabilitation, surface water development and management projects, including reservoir management, source water protection and watershed planning studies and facilities that sustain long-term reliable water resources. 19. Provide financial incentives to assist in the disposal of concentrate, sludge, and other byproducts created in the water treatment process. 20. Authorize, promote, and provide incentives or credits for development of local drought- resilient water supply projects such as desalination, non-potable recycling, and potable reuse projects. 21. Provide funding for potable reuse demonstration projects and studies. 22. Provide funding for infrastructure improvements at desalination facilities with eligibility for public and private partnerships. 23. Authorize federal and state funding to develop and implement regional or subregional conservation programs, including but not limited to property acquisition, revegetation programs, and watershed plans. 24. Provide state and/or federal funding for the restoration of the Salton Sea. 25. Provide federal and/or state funding to implement actions that address the ecological and water supply management issues of the Lower Colorado River from Lee's Ferry to the southerly international border with Mexico. 26. Provide federal and/or state funding to implement actions that address the ecological and water supply management issues of the Sacramento-San Joaquin River Delta. 27. Permit the use of grant funding for projects implemented under public-private partnerships where the grant provides funding for a public benefit. 28. Require the state agencies responsible for preparing the IRWM grant program guidelines to conduct a comprehensive public outreach process that ensures stakeholders have an opportunity to provide adequate input on preparation of the guidelines and that the state agencies consider and respond to comments received through the outreach process. Otay Water District Legislative Program 20232024 10 | P a g e 29. Provide incentive, funding, and assistance to water agencies so that they can comply with AB 32 (2006) requirements, and updated statutory requirements imposed pursuant to SB 32 (2016), SB 100 (2018), and SB 1020 (2022). 30. Remove funding caps from state and federal grant and loan funding sources. 29.31. Streamline federal and state grant reimbursement processes. Oppose initiatives that: 1. Impose additional administrative requirements and/or restrict the District’s, Water Authority’s, or other local water agencies’ ability to finance public facilities through the issuance of long-term debt. 2. Interfere with the responsibility of a region, operating under an Integrated Regional Water Management Plan, for setting priorities and generating projects to be paid from any IRWM accounts and grants. 3. Interfere with the control exercised by the San Diego funding subregion over the use and expenditure of any water-user fee revenues that may be dedicated to the region. 4. Establish IRWM funding criteria that limitslimit local discretion in project selection. 5. Provide for after-the-fact reduction in quantity or quality of a public water supply due to new restrictions on the operation or use of water supply facilities unless funding for alternate sources of water is provided. 6. Impose a "utility user fee" or "surcharge" on water for the purposes of financing open space/habitat preservation, restoration, or creation. C. Rates Support initiatives that: 1. Maintain the authority of water agencies to establish water rates locally, consistent with cost-of-service requirements of the law. 2. Maximize the ability of water agencies to design rate structures to meet local water supply goals and that conform to cost-of-service requirements of the law. 3. Encourage and promote education to elected officials, community/business leaders, organizations, and the public about water sales and conservation and the District and its wholesaler’s rates and what those rates support including but not limited to infrastructure, asset management, operations, maintenance, water reliability, and more. Oppose initiatives that: 1. Impair the District’s, the Water Authority’s, or local water agencies’ ability to provide reliable service at reasonable costs to member agencies or to charge all member agencies the same or similar rate for each class of service consistent with cost-of-service requirements of the law. 2. Undermine or weaken cost-of-service rate-making requirements in existing law. 3. Impair the District’s ability to maintain reasonable reserve funds and obtain and retain reasonable rates of return on its reserve accounts. 4. Mandate a specific rate structure for retail water agencies. 5. Prescribe mandatory conservation-based rate structures that override the authority of the boards of directors of local water agencies to set rate structures according to the specific needs of the water agencies. Otay Water District Legislative Program 20232024 11 | P a g e 6. Usurp special district funds, reserves, or other state actions that force special districts to raise rates, fees, or charges. D. Water Bonds Support initiatives that: 1. Provide an equitable share of funding to San Diego County, with major funding categories being divided by county and funded on a per-capita basis to ensure bond proceeds are distributed throughout the state in proportion to taxpayers’ payments on the bonds. 2. Focus on statewide priorities, including restoration of fish and wildlife habitat, construction of an improved method of conveyance of water through or around the Delta that provides water supply reliability to Delta water users, promotion of greater regional and local self-sufficiency, surface storage, and promotion of water-use efficiency. 3. Ensure funding from various propositions for local and regional water-related projects. 4. Include within IRWM funding money that a region may use over time to develop and refine its plan and to develop institutional structures necessary to establish and implement the plan. 5. Give primary consideration to funding priorities established by local and regional entities through their IRWM planning process. 6. Ensure the application process for funding is not unnecessarily burdensome and costly, with an emphasis on streamlining the process. 7. Limit state overhead to no more than five percent5% of bond funding amounts. 8. Place as much emphasis and providesprovide at least as much funding for surface storage as for groundwater storage. 9. Define the “San Diego sub-region” and “San Diego county watersheds” as “those portions of the westward-flowing watershed of the South Coast hydrologic region situated within the boundaries of San Diego County.” 10. Fund emergency and carryover storage projects. 11. Consolidate administration of all voter-approved water-related bond funding in one place, preserves existing expertise within the state bureaucracy to manage bond-funding processes, and provide consistent application and evaluation of bond funding applications. 12. Provide the state’s share of funding for projects that advance the achievement of the co- equal goals of water supply reliability and Delta ecosystem restoration. 13. Provide funding for water infrastructure that resolve conflicts in the state’s water system and provide long-term benefits to statewide issues including water supply, reliability, water quality, and ecosystem restoration. Oppose initiatives that: 1. Do not provide an equitable share of funding to San Diego County based on the San Diego County taxpayers’ proportional contribution to repayment of the bonds. 2. Do not provide funding for infrastructure that resolves statewide or regional conflicts of water supplies. 3. Do not provide funding that result in net increases in real water supply and water supply reliability. 4. Commit a significant portion of bond funding to projects that do not result in net increases in real water supply or water supply reliability. Otay Water District Legislative Program 20232024 12 | P a g e E. Affordability Support initiatives that: 1. Abides by the Human Right to Water (AB 685, 2012) as set forth in Section 106.3 of the California Water Code which reads that, “every human being has the right to safe, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes.” The State Water Resources Control Board also has a resolution supporting this program. 2. Meets the required standards under Proposition 218 in the California Constitution regarding proportionality of water rates and the cost-of-service provisions. 3. Relyies on data-driven analysis of water affordability, including considerations such as census data and economically -disadvantaged communities. As such, the District supports the continued implementation of AB 2334 (2012) that requires the Department of Water Resources to provide this analysis and place it in California’s Water Plan. 4. 4. Supports the creation of a permanent low-income water rate assistance program that targets 5. providing financial assistance to low-income ratepayers using federal resources or existing resources within either the state General Fund or cap-and-trade dollars. 6.5.Does not burden water districts with excessive or overly prescriptive state mandates including the collection of water taxes or water rate and boundary data, and qualification of customers for low-income assistance programs. 6. Supports the expansion of the low-income assistance programs (LIHWAP) or other programs, using existing resources from the federal government, with the state General Fund or cap-and-trade dollars or other state financial resources. 7. Provide the Water Authority, its member agencies, and water ratepayers with a permanent low-income customer assistance program. 8. Encourage and promote education to elected officials, community/business leaders, organizations, and the public about affordability. Oppose initiatives that: 1. Is not targeted appropriately: Any low-income water rate assistance program 2.1. must be limited in scope to those individuals. By seeking to do too much, effectiveness could be limited. Examples of this could include extending program resources to domestic wells or water-use efficiency programs. 3. Does not have a funding source: Any low-income water rate assistance program 4.2.needs to identify specific sources of sustainable funding and does not include a water tax or water surcharge. 5. Does not reinvent the wheel: Any low-income water rate assistance program should be 6.3. built upon and use the resources of an existing benefit distribution organization or system, such as CalFresh, rather than requiring water agencies to add the operating expense of creating and administering a new method. VII. Governance and Local Autonomy Support initiatives that: Otay Water District Legislative Program 20232024 13 | P a g e 1. Expand local autonomy in governing special district affairs. 2. Promote comprehensive long-range planning. 3. Assist local agencies in the logical and efficient extension of services and facilities to promote efficiency and avoid duplication of services. 4. Streamline the Municipal Service Review Process or set limits on how long services reviews can take or cost. 5. Reaffirm the existing “all-in” financial structure or protect the Water Authority voting structure based on population. 6. Promote measures that increase broader community and water industry representation/appointments on State decision making bodies. 7. Ensure an open and transparent process for adoption of regulations, policies, and guidelines. 8. Preserve the District and other local water agencies’ ability to establish local priorities for water resources planning decisions. Oppose initiatives that: 1. Assume the state legislature is better able to make local decisions that affect special district governance. 2. Create one-size-fits-all approaches to special district reform. 3. Unfairly target one group of local elected officials. 4. Usurp local control from special districts regarding decisions involving local special district finance, operations, or governance. 5. Diminish the power or rights of the District’s governing body to govern the District’s affairs. 6. Diminish the power or rights of the District to govern relations with its employees. 7. Modify the committee or board voting structure or District and member agency board representation on the Water Authority Board of Directors unless such changes have been expressly authorized by the District’s Boardthe District’s Board has expressly authorized such changes. 8. Create unfunded local government mandates. 9. Create costly, unnecessary, or duplicative oversight roles for the state government of special district affairs. 10. Create new oversight roles or responsibility for monitoring special district affairs. 11. Change the San Diego County Water Authority Act regarding voting structure unless it is based on population. 12. Shift the liability to the public entity and relieve private entities of reasonable due diligence in their review of plans and specifications for errors, omissions, and other issues. 13. Place a significant and unreasonable burden on public agencies, resulting in increased cost for public works construction or their operation. 14. Impair the ability of water districts to acquire property or property interests required for essential capital improvement projects. 15. Increase the cost of property and right-of-way acquisition or restrictsrestrict the use of right-of-ways. 16. Work to silence the voices of special districts and other local government associations on statewide ballot measures impacting local government policies and practices, including actions that could prohibit special districts and associations from advocating for positions Otay Water District Legislative Program 20232024 14 | P a g e on ballot measures by severely restricting the private resources used to fund those activities. 17. Prescribe mandatory conservation-based or other rate structures that override the authority of the board of directors to set its rate structure. 18. Circumvent the legislative committee process, such as the use of budget trailer bills, to advance policy issues including impacting special districts without full disclosure, transparency, or public involvement. 19. Restrict the District’s ability to utilize a demand forecasting methodology that is best suited locally and for the region. 20. Impose mandates requiring specific water resources be developed by water agencies that fail to consider local factors such as water reliability, hydrologic and geographic characteristics, and the economic, political, public acceptance, social environment, which can influence selection of resources and/or fails to consider or conflicts with existing local and regional planning policies and implementation priorities. 21. Limit the District’s ability to establish local priorities for water resources planning decisions. 21.22. Impede the District’s ability to conduct its critical mission efficiently and effectively of always providing and sustaining critical services and under all conditions. VIII. Imported Water Issues A. Bay-Delta i. Co-Equal Goals Support initiatives that: 1. Require the Delta Stewardship Council or DWR to provide periodic analyses of the cost of the proposed Delta improvements to the Legislature and the public. 2. Provides conveyance and storage facilities that are cost-effective for the San Diego region’s ratepayers, improve the reliability and quality of the San Diego region’s water supplies, and protect the Bay-Delta’s ecosystem. 3. Continue to support the co-equal goals of water supply reliability and environmental restoration embodied in the 2009 Delta bill package. 4. Improve the ability of water-users to divert water from the Delta during wet periods, when impacts on fish and the ecosystem are lower and water quality is higher. 5. Encourage the development of a statewide water transfer market that will improve water management and allow more efficient use of available resources. 6. Support improved coordination of Central Valley Project and State Water Project (SWP) operations and implementation of voluntary agreement that are fair to the users of both projects and do not unfairly shift costs to SWP contractors. 7. Support continued state ownership and operation of the SWP, including project facilities, as a public resource. 8. Ensure that any reorganization of the State Water Project, including operations and management, preserves the ability for non-State Water Project contractors to access the facility for transportation of water to a non-State Water Project contractor. 9. Authorize and appropriate the federal share of funding for the long-term Bay-Delta solution, including for the EcoRestore Program. 10. Provide the ongoing state share of funding for the EcoRestore Program. Otay Water District Legislative Program 20232024 15 | P a g e 11. Provide state funding for aquatic toxicity monitoring in the Bay-Delta. Such legislation should not place a surcharge on water supply exports, nor should it substantively reduce funding for other measures that protect the environment and public health. Oppose efforts that: 1. Impose water user fees to fund ecosystem restoration and other public purpose, nonwater- supply improvements in the Delta that benefit the public at large. 2. Transfer operational control of the State Water Project or any of its facilities to the Metropolitan Water District of Southern California (MWD), the State Water Contractors, the Central Valley Project Contractors, the State and Federal Contractors Water Agency, or any entity comprised of MWD or other water project contractors, or any other special interest group. ii. Bay-Delta Conveyance Project Support initiatives that: 1. Are consistent with the Water Authority’s Board of Directors’ July 25, 2019 adopted Bay- Delta project policy principles, including the following: a. On April 29, 2019, Governor Newsom signed Executive Order N-10-19, directing the preparation of a water resilience portfolio approach that meets the needs of California’s communities, economy, and environment through the 21st century, including consideration of multi-benefit approaches that meet multiple needs at once, and a single-user tunnel Bay-Delta project. b. The Water Authority’s Board supports Governor Newsome’s Executive Order N-10- 19 and directs staff to inform the Newsome Administration that its support for a single-tunnel Bay-Delta project is expressly conditioned upon the project costs being characterized by the Department of Water Resources (DWR) as conservation, or supply charges, as similar facilities historically have been defined in the Metropolitan Water District’s (MWD) SWP contract with DWR. c. As reflected in Table 2 of DWR’s Appendix B to Bulletin 132-17, Data and Computation Used to Determine Water Charges, and for which costs are recovered in Article 22(a) of Delta Water Charge of MWD’s SWP Contract; allow for the exemption of north-of-Delta SWP contractors. 2. Support the establishment of an independent and transparent oversight function to monitor and provide regular updates on project implementation progress, including expenditure tracking, construction progress, project participants’ contributions, and all other relevant activities and developments. 3. Allow access to all SWP facilities, including project facilities, to facilitate water transfers. B. Metropolitan Water District Support initiatives that: 1. Provide an appropriate level of accountability and cost control over MWD spending. 2. Protect and safeguard the Water Authority’s Preferential Rights in the Metropolitan Water District Act. Otay Water District Legislative Program 20232024 16 | P a g e 3. Require MWD to refund or credit to its member agencies revenues collected from them that result in reserve balances greater than the maximum reserve levels established pursuant to state legislation. 4. Require MWD to implement actions that advance and support its long-term financial stability, fiscal sustainability, and that moderate fluctuations in rates and charges for its member agencies from year to year, in a publicly transparent manner. 5. Amend the Metropolitan Water District Act to change voting allocation on its Board of Directors based on a member agency’s total financial contribution to MWD, and in a manner that is fair and equal to ratepayers, and similar to the voting allocation method of the County Water Authority Act. C. Colorado River Support initiatives that: 1. Supports implementation and funding of the California Colorado River Water Use Plan, including the Lower Colorado River Multi-Species Conservation Program 2. Provide funding for Colorado River salinity control projects and other water quality management efforts. 3. Provide for state and federal authorizations and appropriations of non-fee-based funds to implement Salton Sea mitigation and the State’s phased approach to restoration in the form of the Salton Sea Management Program consistent with its obligations under Chapters 611, 612, and 613 of the Statutes of 2003. 4. Limit the Quantification Settlement Agreement mitigation costs imposed on funding parties to the amount committed in accordance with the original QSA legislation. 5. Provide a governing structure and/or specified managing office over the state's Salton Sea Management Program to provide guidance and oversight of restoration activities. 6. Support the sustainability of the Colorado River and provide operational flexibility through the development of storage, including Lake Mead and additional storage opportunities regionally, and through the renegotiation of the new interim shortage guidelines for continued operation of the River. 7. Allow for the option to create an alternate conveyance route, when technically and financially feasible, for reliable delivery of the Water Authority’s Independent Colorado River water supplies and integration of compatible partnership projects along the proposed conveyance routes as a model of the Governor’s Water Resilience Portfolio approach to water management. 8. Support the State’s Salton Sea Management Program under the guidelines of the revised Water Order (Stipulated Order) adopted by the State Water Resources Control Board in November 2017. 9. Preserve the California Colorado River Board 10. Ensure the interests of the members of the California Colorado River Board continue to be addressed in any state government reorganization. 11. Allow for storage of the Water Authority’s Colorado River water supplies to provide enhanced flexibility with annual transfer volumes, support drought contingency planning, and align with the Governor’s Water Resilience Portfolio approach to water management. Oppose initiatives that: Otay Water District Legislative Program 20232024 17 | P a g e 1. Impose additional mitigation costs or obligations for the Salton Sea on the non-state parties to the Quantification Settlement Agreement. 2. Eliminate the California Colorado River Board without providing a comparable structure or forum that ensures the Water Authority's interests in the Colorado River are preserved. D. State Water Project Support initiatives that: 1. Provide for development of a comprehensive state water plan that balances California's competing water needs, incorporates the water resources and infrastructure concepts included in the Governor’s “Water Resilience Portfolio” and “California’s Water Supply Strategy Adapting to a Hotter, Drier, Future,” and results in a reliable and affordable supply of high- quality water for the State of California and the San Diego region. Oppose initiatives that: 1. Make urban water supplies less reliable or substantially increases the cost of imported water without also improving the reliability and/or quality of the water. 2. Revise the Central Valley Project Improvement Act to Jeopardize the Act's environmental integrity, compromise State Water Project supply reliability a n d/or limit the ability of urban agencies to transfer and/or bank CVP water for use both within and outside the CVP service area. 3. Transfer operational control of the State Water Project or any of its facilities to MWD, the State Water Project contractors, Central Valley Project contractors, the State and Federal Contractors Water Agency, any entity comprised of MWD or other water project contractors, or any other special interest group. IX. Optimize District Effectiveness Support initiatives that: 1. Manage District resources in a transparent and fiscally responsible manner. 2. Give utilities the ability to avoid critical peak energy pricing or negotiate energy contracts that save ratepayers money. 3. Develop reasonable Air Pollution Control District engine permitting requirements. 4. Reimburse or reduce local government mandates. 5. Allow public agencies to continue offering defined benefit plans. 6. Result in predictable costs and benefits for employees and taxpayers. 7. Eliminate abuses. 8. Retain local control of pension systems. 9. Are constitutional, federally legal, and technically possible. Oppose initiatives that: 1. Restrict the use of, or reallocate, district property tax revenues to the detriment of special districts. 2. Create unrealistic ergonomic protocol. 3. Micromanage special district operations. 4. Balance the state budget by allowing regulatory agencies to increase permitting fees. Otay Water District Legislative Program 20232024 18 | P a g e 5. Tax -dependent benefits. 6. Require new reporting criteria on energy intensity involved in water supply. X. Safety, Security, and Information Technology Support initiatives that: 1. Provide funding for information security upgrades to include integrated alarms, access/egress, and surveillance technology. 2. Provide incentives for utilities and other local agencies to work cooperatively, share costs or resources. 3. Provide funding for communication enhancements, wireless communications, GIS, or other technological enhancements. 4. Encourage or promote compatible software systems. 5. Fund infrastructure and facility security improvements that include facility roadway access, remote gate access, and physical security upgrades. 6. Protect state, local, and regional drinking water systems from terrorist attack or deliberate acts of destruction, contamination, or degradation. 7. Provide funds to support training or joint training exercises to include contingency funding for emergencies and emergency preparedness. 8. Equitably allocate security funding based on need, threats, and/or population. 9. Encourage or promote compatible communication systems. 10. Encourage and promote funding of Department of Homeland Security Risk Mitigation programs. 11. Recognizes water agencies as emergency responders in the event of a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent and mitigate loss or impairment of life, health, property, or essential public services due to natural disasters (e.g., wildfires, earthquakes), power outages as well as terrorist and other criminal activities. 12. Provide state grantgrants or other funding opportunities to support seismic risk assessment and mitigation plans, or to mitigate vulnerabilities. 13. Provide funding for projects that enhance security against terrorist acts or other criminal threats to water operation, services, facilities, or supplies. 14. Provide funding for projects that improve the security of the District facilities and operations. 15. Provide funding to support technologies that support remote working, when necessary to prevent loss of or damage to life, health, property, or essential public services. Oppose initiatives that: 1. Create unnecessary, costly, or duplicative security or safety mandates. 2. Require expanded water system descriptions or additional public disclosure of public water systems details for large water suppliers in Urban Water Management Planning documents, potentially compromising public water systems, and creating a conflict with the Department of Homeland Security’s recommendation to avoid reference to water system details in plans available to the public. XI. Water Quality Issues Otay Water District Legislative Program 20232024 19 | P a g e Support initiatives that: 1. Assure cost-effective remediation and cleanup of contaminates of concern that have impacted groundwater and surface water. 2. Incorporate sound scientific principalsprinciples in adopting drinking water standards for drinking water concerns. 3. Revise NPDES standards and procedures to facilitate inland discharge and use of recycled water. 4. Establish appropriate quality standards, testing procedures, and treatment processes for emerging contaminants. 5. Alter the definition of “lead free” to reduce the permissible amount of lead in fixtures, plumbing, and pipe fittings to be installed for the delivery of drinking water. 6. Exempt purified wastewater from regulation as a discharge under the Clean Water Act. 7. Protect child public health by requiring schools to undertake lead testing in school drinking water systems. 8. Implement source control for management prevention of contamination by constituents of emerging concern. 9. Provide the necessary funding for research on the occurrence, treatment, health effects, and environmental cleanup related to contaminationcontamination of drinking water sources. 10. Implement and fund the San Diego Regional Water Quality Control Board’s triennial review of water quality standards. 11. Provide funding and support for Colorado River salinity control projects and other water quality management efforts. 12. Direct the state’s participation or assistance in water quality issues related to or threatening the Colorado River water source. 13. Streamline permitting of facilities constructed for the purpose of improving water quality. 14. Ensure consistent application of the law by the State Water Resources Control Board and the nine regional water quality control boards. Oppose initiatives that: 1. Eliminate the State Water Resources Control Board and/or the nine regional water quality control boards without ensuring the functions and expertise of the boards isare maintained in any reorganized entity. 2. Regulate the conveyance, storage, or release of water supplies as discharge under the Clean Water Act and other water quality control laws. 3. Make water suppliers financially and legally responsible for mitigation of pollution contamination by third parties. 4. Make water suppliers financially and legally responsible for testing or correction of any water quality-related issues associated with private property or on-site plumbing systems. XII. Water Recycling and Potable Reuse Support initiatives that: 1. Reduce restrictions on recycled water usage or promote consistent regulation of recycled water projects to reduce impediments to the increased use of recycled water. Otay Water District Legislative Program 20232024 20 | P a g e 2. Reduce restrictions on injecting recycled water into basins where there is no direct potable use. 3. Advocate for direct potable reuse. 4. Advocate for recycled water use upstream of lakes and reservoirs if protected by urban water runoff protection systems. 5. Provide financial incentives for recharge of groundwater aquifers using recycled water. 6. Make recycled water regulations clear, consolidated, and understandable to expedite related project permitting. 7. Promote recycled water as a sustainable supplemental source of water. 8. Allow the safe use of recycled water. 9. Facilitate development of technology aimed at improving water recycling. 10. Increasing Increase funding for water recycling projects. 11. Support continued funding of the Title XVI Water Reclamation and Reuse Program including Water Reclamation and Reuse Projects, the WaterSMART Program, and the Desalination and Water Purification Research Program. 12. Increase awareness of the ways recycled water can help address the region’s water supply challenges. 13. Create federal and state incentives to promote recycled water use and production. 14. Establish federal tax incentives to support U.S. companies in the development of new water technologies that can lower productions costs, address by products such as concentrates, and enhance public acceptance of recycled water. 15. Establish a comprehensive national research and development, and technology demonstration, program to advance the public and scientific understanding of water recycling technologies to encourage reuse as an alternative source of water supply. 16. Provide incentives for local agencies to work cooperatively, share costs or resources to promote or expand the use of recycled water. 17. Further refine emergency regulations to reward local suppliers that have invested in using recycled water for landscape irrigation to maintain an incentive to continue expanding areas served by recycled water. 18. Encourage the use of recycled water in commercial, industrial, institutional, and residential settings. 19. Recognize and support the development of potable reuse as a critical new water supply. 20. Define purified recycled water as a source of water supply and not as waste. 21. Mandate the reduction of wastewater discharges to the ocean absent inclusion of funding to offset the significant costs of implementation. 22. Authorize local governmental agencies to regulate the discharge of contaminants to the sewer collection system that may adversely affect water recycling and reuse. 23. Authorize and facilitate expanded use of local water resources including water recycling, potable reuse, graywater, and rainwater harvesting (e.g., cisterns and rain barrels), and brackish groundwater. 24. Streamline regulatory processes and requirements to encourage and support the development of potable reuse and non-potable reuse as a municipal water supply. 25. Recognize the entire interconnected urban water cycle, as well as public health and safety, must be taken into consideration in long-term water use efficiency policies, particularly including the unintended consequences of declining flows on water, wastewater, potable reuse, and recycled water systems. Otay Water District Legislative Program 20232024 21 | P a g e 26. Encourage dual plumbing in new development where non-potable recycled water is likely to available to enable utilization of recycled water. 27. Promote uniform regulatory interpretation of state recycled water system standards. 28. Support beneficial revisions to the California Plumbing Code that facilitate recycled water systems. Oppose initiatives that: 1. Restrict use of recycled water for groundwater recharge. 2. Establish new water or recycled water fees solely to recover State costs without also providing some benefit. 3. Limit the ability of local governmental agencies to regulate the discharge of contaminants to the sewer collection system that may adversely affect water recycling and reuse. 4. Establish unreasonable regulatory requirements or fees tofor the safe use of recycled water, which may unreasonably impede or create a disincentive to its further development. 5. Mandate the reduction of wastewater discharges to the ocean absent inclusion of funding to offset the significant costs of implementation. 6. Water use efficiency standards (AB 1668), which do not reflect the impact that higher TDS recycled water has on the usage rates to reduce salt loading in areas of use. XIII. Water Rights Modernization Support initiatives that: 1. Protect existing water rights, water-rights priority, and local agencies’ ability to use water resources for their present and future water supply reliability and environmental well-being. 2. Support funding for data modernization tools needed to monitor and enforce water rights priorities and protect State Water Project supplies, including funding and technical assistance to fully implement existing law requiring metering of diversions and potential legislation or regulation aimed at providing real-time water diversion data. 3. Support voluntary water transfers and exchanges as the means to reallocate water supplies, including for the environment, to meet water supply reliability goals and achieve voluntary agreements on the implementation of the Bay-Delta Water Quality Control Plan and interstate solutions to limited Colorado River supplies. 4. Support more flexible regulations to enhance the ability to divert water in times of high storm runoff and snow melt while protecting existing water rights and the environment. 5. Support increases in civil penalties to deter violations of State Board orders, including curtailment orders. XIVIVI. Water Services and Facilities Support initiatives that: 1. Provide funding to implement actions identified in the California Water Action Plan to lay a solid fiscal foundation for implementing near-term actions, including funding for water efficiency projects, wetland and watershed restoration, groundwater programs, conservation, flood control, and integrated water management and result in a reliable supply of high-quality water for the San Diego region. Otay Water District Legislative Program 20232024 22 | P a g e 2.Promote the coordination and integration of local, state, and federal climate change policies and practices to the greatest extent feasible. 3.Fund or otherwise facilitate ongoing implementation of the Quantification Settlement Agreement. 4.Provide reliable water supplies to meet California’s short and long-term needs. 5.Promote desalination pilot studies and projects. 6.Encourage feasibility studies of water resource initiatives. 7.Increase funding for infrastructure and grant programs for construction, modernization or expansion of water, wastewater treatment, reclamation facilities and sewer systems including water recycling, groundwater recovery and recharge, surface water development projects and seawater desalination. 8.Fund enhancements to water treatment, recycling, and other facilities to meet increased regulations. 9.Mandate uniform or similar regulations and procedures by state agencies in the processing and administering of grants and programs. 10.Streamline grant application procedures. 11.Reduce regulations and other impediments for willing sellers and buyers to engage in water transfer agreements. 12.Promote or assist voluntary water transfers between willing buyers and willing sellers and move those transactions through without delay. 13.Streamline the permitting and approval process for desalination and other water-related facilities and implementingimplement water transfers that will improve water management. 14.Establish reasonable statewide approaches to sewer reporting standards. 15.Generate greater efficiencies, better coordinate program delivery, and eliminate duplication in programs for source water protection without lessening the focus on public health of the state’s Drinking Water Program. 16.Target efforts to fix specific issues with water supplies within the state’s Drinking Water Program. 17.Establish federal tax incentives to support U.S. companies in the development of new desalination technologies that can lower productions costs, eliminateeliminate, or reduce impingement or entrainment, reduce energy use, and enhance public acceptance of desalinated water. 18.Establish a comprehensive national research and development, and technology demonstration program to advance the scientific understanding of desalination to expand its use as an alternative source of water supply. 19.Require the State Water Resources Control Board to exercise its authority, ensure robust funding, and implement the Salton Sea mitigation and restoration plan, meet state obligations, and work with QSA stakeholders to find workable solutions to ensure the continuation of IID water transfers. 20.Support solutions to water supply issues that address common challenges, provide a comprehensive approach that is fair to all users, balance the needs of urban and rural communities, and take into consideration the interests of all stakeholders as well as the impact to the environment. 21.Further refine emergency drought regulations to eliminate a cap on credits and adjustments so as not to impose undue burden, financial or otherwise, on communities that have already Otay Water District Legislative Program 20232024 23 | P a g e invested in water conservation, development of new water sources, storage, or loss prevention. 22.Provide funding for water infrastructure development, infrastructure security, and rehabilitation and replacement projects that benefit ratepayers. 23.Provide funding for habitat preservation programs that address impacts resulting from construction or operation of water system facilities. 24.Provide funding for projects that enhance security against terrorist acts or other criminal threats to water operation, services, facilities, or supplies. 25.Provide incentives that encourage contractors to recycle or reduce waste associated with construction of water facilities. 26.Improve the local agencies’ efforts to maintain and protect its property, rights of way, easements, pipelines, and related facilities and minimizes liability to local agencies and the District. 27.Protect the local agencies’ properties from restrictions when surrounding properties are incorporated into preservation areas. 28.Encourage the use of current and emerging technologies for monitoring and assessing the condition of large diameter pipelines. 29.Encourage water suppliers to develop and execute asset management programs that include visual inspections, internal/external inspections, asset condition assessments, corrosion mitigation, and reis analysis in a manner that recognizes the individuality and uniqueness of each water supplier and its systems. 30.Improve the District’s efforts to maintain and protect its property, rights of way, easements, pipelines, and related facilities and minimizes liability to the District. 31.Protect the District, other agencies and the Water Authority properties from restrictions when surrounding properties are incorporated into preservation areas. 32.Provide funding to water agencies for the voluntary retrofit of facilities for on-site generation of chlorine. 33.Provide funding for water supplier asset management programs that involve the active monitoring, repair, or replacement of physical assets and infrastructure, which includes pipes, valves, facilities, equipment, and other infrastructure. 34.Provide for restrictions on price gouging during public safety power shutoff events and for at least 72 hours following restoration of power. 35.Provide that de-energization or public safety power shutoff events may be included as a condition constituting a state of emergency or local emergency. 36.Provide a tax emption for the sale of, or storage, use, or consumption of, a backup electrical resources, thatwhich is purchased for exclusive use by a city, county, special district, or other entity of local government during a de-energization or public safety power shutoff event. 37.State that the use of alternative power sources (such as generators) by essential public services during de-energization or public safety power shutoff events shall not be limited by any state or local regulations or rules. 38.Recognize the critical role the District, local agencies, and the Water Authority play as Public Safety Partners in Public Safety Power Shutoff events and other natural or man-made disasters. Further recognizes the importance of the agency’s ability to provide immediate and sustained response for extended periods of time. 39.Provide financial support to local projects designed to mitigate or adapt to potential negative impacts of climate change on water supply reliability. Otay Water District Legislative Program 20232024 24 | P a g e 40.Investigate and provide financial support to projects designed to mitigate potential negative impacts of climate change on water supply reliability. Oppose initiatives that: 1.Restrict local control and discretions over water facilities, asset management, and facility operations. 2.Make urban water supplies less reliable or substantially increases the cost of imported water without also improving the reliability and/or quality of the water. 3.Create unrealistic or costly water testing or reporting protocol. 4.Disproportionately apportion the cost of water. 5.Create undo hurtles for seawater desalination projects. 6.Create unreasonable or confusing sewer reporting standards. 7.Create administrative or other barriers to sales between willing buyers and willing sellers that delay water transfers. 8.Create a broad-based user fee that does not support a specific local program activity or benefit; any fee must provide a clear nexus to the benefit local ratepayers or local water supplies from the establishment that charge or fee would provide. 9.Create unrealistic or is costly to obtain water quality standards for potable water, recycled water, or storm water runoff. 10.Change the focus of the state’s Drinking Water Program or weaken the parts of the program that work well. 11.Lessen the focus on public health of the state’s Drinking Water Program. 12.Impose undue burden, financial or otherwise, on communities that have already invested in water conservation, development of new water sources, storage, or loss prevention. 13.Impose additional mitigation costs or obligations for the Salton Sea on the non-state parties to the Quantification Settlement Agreement. 14.Impair the District and other local water agencies’ ability to provide and operate the necessary facilities for a safe, reliable, and operational flexible water system. 15.Limit local agencies’ sole jurisdiction over planning, design, routing, approval, construction, operation, or maintenance of water facilities. 16.Restrict local agencies’ ability to respond swiftly and decisively to an emergency that threatens to disrupt water deliveries or restricts the draining of pipelines or other facilities in emergencies for repairs or preventive maintenance. 17.Authorize state and federal wildlife agencies to control, prevent, or eradicate invasive species in a way that excessively interferes with the operations of water supplies. 18.Prohibit or in any way limit the ability of local agencies from making full beneficial use of any water, wastewater, or recycling facility and resource investments. 19.Prohibit the use of alternative contract procurement methods that can be utilized in the construction of water facilities. 20.Shift the risks of indemnity for damages and defense of claims from contractors to the District. 21.Impair local agencies’ efforts to acquire property or property interests required for essential capital improvement projects or acquisition of property to meet pipeline water drain-down needs for existing facilities. 22.Increase the cost of property and right of way acquisition. Otay Water District Legislative Program 20232024 25 | P a g e 23.Restrict the District’s use of public rights of way or increase the cost of using public rights of way. 24.Restrict the transfer of property acquired for purposes of environmental mitigation or environmental mitigation credits to other public or private entities for long-term management. 25.Establish prescriptive leak loss control requirements for the operation, maintenance, and asset management of water conveyance and distribution systems, thatwhich fail to consider full life-cycle costing. 26.Establish meter testing requirements for source water meters that fail to consider industry standards and cost-effectiveness. 27.Limit the discretion of the District from protecting security and privacy of comprehensive inventories of all assets, which includes infrastructure location, condition, performance, and useful life. 28.Impair local agencies’ ability to execute the planning, design, and construction of projects using itstheir own employees. 29.Limit the autonomy of discretion of water supplier to develop and execute asset management inspection programs that include visual inspections, internal/external inspections, asset condition assessments, and corrosion mitigation in a manner that recognizes the individuality and uniqueness of each water supplier and its systems. 30.Authorize air quality management districts or other regulatory bodies to adopt or maintain rules that would limit or prohibit a local government entity’s use of a state and/or federally complaint natural gas-powered generator during a de-energization or public safety power shutoff event. 31.Would inhibit the District from fulfilling its critical role as a Public Safety Partner and making immediate and sustained response in a Public Safety Power Shutoff event or and other natural or man-made disasters, such as the CARB Advanced Clean Fleet regulation. 32.Would inhibit the District from fulfilling its critical role as an essential service provider from procuring and operating fleets which meet the needs to perform routine and emergency maintenance of water and wastewater systems, such as the CARB Advanced Clean Fleet regulation. 33.Require incorporation of climate change considerations into regional and local water management planning that does not provide flexibility to the local and regional water agencies in determining the climate change impact and identification of adaptation and mitigation measures. 34.Impose top-down “one-size-fits-all” climate change mandates that fail to account for hydrological, meteorological, economic, and social variation across the state and/or that fail to incorporate local and regional planning and implementation priorities and protocols. XIV.Water -Use and Efficiency Support initiatives that: 1.Provide funding for incentives for water-use efficiency and water conservation programs including water-efficient devices, practices and demonstration projects and studies. 2.Encourage the installation of water-efficient fixtures in new and existing buildings. 3.Promote the environmental benefits of water-use efficiency and water conservation. 4.Enhance efforts to promote water-use efficiency awareness. Otay Water District Legislative Program 20232024 26 | P a g e 5.Offer incentives for landscape water-efficient devices including, but not limited to ET controllers and soil moisture sensors. 6.Develop landscape retrofit incentive programs and/or irrigation retrofit incentive programs. 7.Permit or require local agencies to adopt ordinances that require or promote water-efficient landscapes for commercial and residential developments. 8.Create tax incentives for citizens or developers who install water-efficient landscapes. 9.Create tax incentives for citizens who purchase high-efficiency clothes washers, dual-flush and high-efficiency toilets, and irrigation controllers above the state standards. 10.Expand community-based water-use efficiency and education programs. 11.Facilitate and encourage the use of rainwater-capture systems, i.e., rain barrels, cisterns, etc. and alternative water sources, i.e., air conditioner condensate for use in irrigation. 12.Develop incentives for developers and existing customers to install water-efficient landscape in existing developments or new construction. 13.Encourage large state users to save water by implementing water-efficient technologies in all facilities both new and retrofit. 14.Encourage large state water users to save water outdoors. 15.Educate all Californians on the importance of water, and the need to conserve, manage, and plan for the future needs. 16.Encourage technological research targeted to more efficient water use. 17.Give local agencies maximum discretion in selecting water-use efficiency and conservation programs that work for their customers and the communities they serve. 18.Require the Department of Water Resources to implement a uniform statewide turf rebate subsidy or incentive program. 19.Restrict Property Owner Associations from forbidding the use of California native plants, other low water use plants, mulch, artificial turf, or semi-permeable materials in well- maintained landscapes. 20.Restrict Property Owner Associations from forbidding retrofits of multiple unit facilities for the purpose of submetering, if feasible. 21.Ensure plumbing codes and standards that facilitate the installation and/or retrofit of water efficient devices. 22.Establish standards for the utilization of high-efficiency commercial coin-operated and residential clothes washers. 23.Provides for federal tax-exempt status for water-use efficiency rebates, consistent with income tax treatment at the state level. 24.Encourage the use of graywater where it complies with local guidelines and regulations and is cost-effective. 25.Provide incentives, funding, and assistance to water agencies so that they can meet the water demand management measure requirements in the Urban Water Management Planning Act. 26.Provide incentives, funding, and other assistance to facilitate water-use efficiency partnerships with the energy efficiency sector. 27.Provide incentives, funding, and other assistance where needed to facilitate market transformation and gain wider implementation of water efficient indoor and outdoor technologies and practices. 28.Recognize local control in determining water use efficiency criteria, such as impact of recycled water salinity on irrigation use and efficiency for the application of non-potable recycled water. Otay Water District Legislative Program 20232024 27 | P a g e 29.Encourage reasonable tracking of water use and improved efficiency in the Commercial, Industrial, and Institutional (CII) sector. 30.Recognize local control in determining how to meet an overall efficient water use goal, based on the combined efficient indoor use, outdoor use, and leak loss, as established under the criteria provided for in statute. 31.Further the statewide goal of a 20 percent reduction in per capita water use by 2020 as set forth in SBX7-7, enacted in November 2009, and preserves water agency discretion and options for achieving this objective. 32.31. Ensure accurate and meaningful streamlined reporting of implementation of water-use efficiency and conservation measures. 33.32. Promote statewide implementation of water-use efficiency best management practices and demand management measures as defined in the Urban Water Management Planning Act. Oppose efforts that: 1.Weaken federal or state water-efficiency standards. 2.Introduce additional analytical and reporting requirements that are time-consuming for local agencies to perform and result in additional costs to consumers yet yield no water savings. 3.Permit Property Owners Associations to restrict low water use plants, mulch, artificial turf, or semi-permeable materials in landscaping. 4.Repeal cost-effective efficiency standards for water-using devices. 5.Repeal cost-effective efficiency standards for water-using devices. 6.Create stranded assets by establishing long-term demand management water-use efficiency and water supply requirements that are inconsistent with the Urban Water Management Planning Act. 7.Prescribe statewide mandatory urban and agricultural water-use efficiency practices, including, but not limited to, methods, measures, programs, budget allocation, and designation of staff dedicated to water conservation programs, that override the authority of the boards of directors of local water agencies to adopt management practices that are most appropriate for the specific needs of their water agencies. 8.Mandate regulation of the CII Sector in a manner that is discriminatory, or sets unachievable Best Management Practices or compliance targets, or would otherwise impair economic activity or the viability of the CII sector. 9.Mandate that water agencies include an embedded energy calculation for their water supply sources in the Urban Water Management Plan or any other water resource planning or master planning document. 9.10. Require redundant reporting of water conservation-related information. XVI.Workforce Development Support initiatives that: 1.Advocate for local, regional, and state programs that support a high-performing workforce and increase the talent pool for water agencies. 2.Advocate for military veterans in the water industry workforce to ensure that veterans receive appropriate and satisfactory credit towards water and wastewater treatment system certifications in California for work experience, education, and knowledge gained in military service. Otay Water District Legislative Program 20232024 28 | P a g e 3.Lower employment barriers for military veterans and transitioning military and that sustain vital water and wastewater services for the next generation. 4.Recruit and support veterans and transitioning military through internships, cooperative work experiences, and other resources. 5.Recruit and support underserved communities in the water industry through internships, cooperative work experiences, and other resources. 6.Advocate and encourage candidate outreach and recruitment in relation to mission-critical job categories in water and wastewater. 7.Ensure advanced water treatment operators and distribution system operators of potable reuse and recycled water facilities have a career advancement path as certified water and/or wastewater treatment plant operators. 8.Increase the number of educational institutions that provide water-industry related training and related program criteria including but not limited to trades, certifications, and degrees. 9.Increase the talent pool of future water industry workers through educational programs, internships, and other resources. 10.Provide funding to educational institutions, water agencies, and workforce students regarding careers in the water industry. 11.Develop qualified candidates for positions in the water industry. 12.Build awareness of water industry-related jobs through student outreach including but not limited to K-12, community colleges, universities, and other educational institutions as well as outreach to the public. 12.13. Promote regional water and wastewater workforce development programs. Oppose initiatives that: 1.Hinder military veterans from using previous experience, education, and knowledge toward a career in water. 2.Regulate agencies from hiring an experienced, educated, and talented water-industry workforce. Otay Water District Legislative Program 2024 1 | Page Effective Date: 04/03/2024 Legislative Program Policy Guidelines Purpose The Otay Water District’s 2024 legislative policy guidelines provide direction to staff and the District’s legislative advocates when they evaluate proposed legislation that may affect the District, other local water agencies, or regional water management and use. Legislation that meets or fails to meet the principles set forth in the guidelines may be supported or opposed accordingly. The guidelines permit the General Manager, District staff, and the District’s legislative advocates to act in a timely fashion between Board meetings on issues that are clearly within the guidelines. While the title of this document suggests these policy guidelines are applicable solely to state and federal legislative issues reviewed by the District and its wholesale supplier the San Diego County Water Authority (Water Authority), increasingly state and federal regulatory and administrative bodies are developing rules, guidelines, white papers, and regulations that can significantly affect the District, its wholesale supplier, and other local water agencies. District staff, including the District’s legislative consultant, often utilize these Legislative Policy Guidelines to provide guidance on emerging and active regulatory and administrative issues. Legislation that does not meet the principles set forth in the guidelines or that has potentially complicated or varied implications will not be acted upon by staff or the legislative advocates in between Board meetings and will instead be presented to the Board directly for guidance in advance of any position being taken. The Water Authority has its own set of legislative guidelines that is a comprehensive program at a wholesale and regional level. District staff has evaluated and selected policies and issues from the Water Authority’s guidelines that may have a direct impact on the District. These policies and issues have been incorporated into the District’s guidelines. Although the District is a retail agency and is focused on its local service area, if there are issues or polices contained in the Water Authority’s Legislative Policy Guidelines that could benefit or impact the District, the General Manager, District staff, and the District’s legislative advocates may act on those issues, respectively. Attachment C Otay Water District Legislative Program 2024 2 | Page Table of Contents The Otay Water Legislative Policy Program Guidelines for 2023 includes the following categories: I. Binational Issues…………………………………………....……………... Page 3 II. Biological and Habitat Preservation…………………………………….. Page 3 III. Desalination……………………………………………………………….. Page 4 IV. Drought and Extreme Weather Response………………………………. Page 4 V. Energy……………………………………………………………………… Page 5 VI. Financial Issues…………………………………………………………… Page 6 A. Fees, Taxes, and Charges………………………….......................... Page 6 B. Funding…………………………………………………………….. Page 8 C. Rates………………………………………………………………... Page 10 D. Water Bonds……………………………………………………….. Page 11 E. Affordability……………………………………………………. Page 12 VII. Governance and Local Autonomy……………………………………….. Page 12 VIII. Imported Water Issues……………………………………………………. Page 14 A. Bay-Delta……………………………………………………………… Page 14 i. Co-equal Goals……………………………………………………. Page 14 ii. Bay-Delta Conveyance Project…………………………………… Page 15 B. Metropolitan Water District…………………………………………… Page 15 C. Colorado River………………………………………………………… Page 16 D. State Water Project…………………………………………………….. Page 17 IX. Optimize District Effectiveness……………………...…………....………. Page 17 X. Safety, Security, and Information Technology……………....................... Page 18 XI. Water Quality Issues………………………………………………………. Page 18 XII. Water Recycling and Potable Reuse……………………………………… Page 19 XIII. Water Rights Modernization……………………………………………… Page 21 XIV. Water Service and Facilities……………………………………………….. Page 21 XV. Water Use and Efficiency………………………………………………….. Page 25 XVI. Workforce Development………………………………………………….. Page 27 Otay Water District Legislative Program 2024 3 | Page I. Binational Issues Support initiatives that: 1. Promote and provide funding for cross-border water supply and infrastructure development projects to serve the San Diego/Baja California border region while protecting local interests. 2. Encourage enhanced cooperation between entities in San Diego and Baja California in development of supply and infrastructure projects that will benefit the entire border region. 3. Encourage state and federal funding to support collaborative binational projects to improve water quality and protect human health and the environment within the broader San Diego region. 4. Develop and enhance communications and understanding of the interdependence of communities on both sides of the border with the goal of improved cross-border cooperation. Oppose initiatives that: 1. Would usurp local control over the financing and construction of water supply and infrastructure projects in the San Diego/Baja California region. II. Biological and Habitat Preservation Support initiatives that: 1. Support development of comprehensive multispecies habitat conservation plants that anticipate and mitigate project development impacts while preserving representative ecosystems, rather than individual species. 2. Exempt operation, maintenance, and repair of water system facilities from endangered species and other habitat conservation regulations because they provide beneficial cyclical habitat values to declining species and foster biological diversity in California. 3. Provide environmental regulatory certainty for implementation of existing and proposed long-term water supply programs. 4. Streamline filing of CEQA notices of determination for multicounty water projects by making those notices available on the CEQAnet website through the Governor’s office of Planning and Research. 5. Incorporate an emergency exemption for “take” of a listed species listed under the state or federal Endangered Species Acts when necessary to mitigate or prevent loss of or damage to life, health, property, or essential public services. 6. Encourage species listings, critical habitat designation, and recovery plans developed pursuant to the state or federal Endangered Species Acts to be consistent with existing interstate compacts, tribal treaties, and other state and federal agreements. Oppose initiatives that: 1. Reduce or limit the use of existing water rights or supplies, 2. Restrict the development of future water supplies. 3. Impose endangered species or habitat conservation requirements that restrict the operation, maintenance, or repair of public water supply, conveyance, treatment, or storage facilities. Otay Water District Legislative Program 2024 4 | Page III. Desalination Support initiatives that: 1. Provide funding for seawater desalination studies and facilities. 2. Recognize and support the development of seawater desalination as critical new water supply for the state, including San Diego County. 3. Streamline permitting of desalination facilities. 4. Preserve and protect potential seawater desalination sites and existing coastal facilities including intake and discharge infrastructure that could be used or reused by a seawater desalination facility. 5. Ensure that desalination intake and discharge regulations are science-based, considering site-specific conditions, and recognizing that not all technologies or mitigation strategies are feasible or cost-effective at every site. IV. Drought and Extreme Weather Response Support initiatives that: 1. Ensure the District and other local agencies including the Water Authority and San Diego County water agencies receive the water supply benefits of investments in local water supply sources. 2. Allow local agencies to achieve compliance with emergency or nonemergency drought regulations or objectives through a combination of water conservation measures and development and implementation of local water supply sources that are not derived from the Delta. 3. Allow local agencies to account for all water supplies available during droughts and other events when calculating the water supply shortage level. 4. Create a process for development and implementation of emergency drought declarations and regulations that recognizes variations among communities, regions, and counties with respect to their abilities to withstand the impacts and effects of drought. 5. Recognize variations among communities, regions, and counties with respect to their abilities to withstand the impacts and effects of droughts and ensure that any temporary or permanent statutory or regulatory direction for improving water-use efficiency to meet statutory or regulatory goals or standards is focused on regional achievement of objectives rather than a one-size-fits-all approach. 6. Unlock federal and state funding to supplement state and local recovery efforts in areas affected by extreme weather. Oppose initiatives that: 1. Disincentivize or impede water agencies from making investments to maximize the potential for recycled water, potable reuse, desalination, and other drought-resilient local water supplies. Otay Water District Legislative Program 2024 5 | Page 2. Create a “one-size-fits-all” approach to emergency drought declarations and regulations that ignores variations among communities, regions, and counties with respect to their ability to withstand the impacts and effects of drought. 3. Hinder federal and state funding to supplement state and local recovery efforts in areas affected by extreme weather. V. Energy Support initiatives that: 1. Provide opportunities for reduced energy rates for the District and other local water agencies. 2. Provide protection to the District and other local water agencies from energy rate increases and rate relief for the District and water agencies. 3. Provide funding, including state and federal grants, for in-line hydro-electric, solar, wind, battery storage, biogas, cogeneration, nanogrids, microgrids, closed-loop pumped storage facilities, and other renewable energy generation or storage technology as means of reducing greenhouse gas emissions and energy cost. 4. Promote funding for use of renewable energy in the operation of District facilities. 5. Prohibit investor-owned utilities from implementing rate changes that undercut the financial viability of renewable energy facilities obligated under long-term Power Purchase Agreements. 6. Provide greater flexibility in the utilization of the District’s facilities for electrical generation and distribution, and acquisition of electricity and natural gas. 7. Provide the District with greater flexibility in the licensing, permitting, interconnection, construction, and the operation of its existing and potential in-line hydroelectric, solar, wind, battery, nanogrid, microgrid, closed-loop pumped-energy storage projects, and other renewable generation or storage technology. 8. Make SWP power available for all water projects. 9. Promote the classification of electricity generated by in-line hydroelectric and closed-loop pumped-energy storage facilities as environmentally sound. 10. Promote the expansion of closed-loop pumped-energy storage facilities to provide clean and environmentally sound energy resources that provides electric and reliability and resiliency, especially during times of potential blackouts. 11. Promote the expansion of in-line hydroelectric energy recovery systems at treatment facility discharge systems. 12. Promote the production, purchase, delivery, and use of alternative sources of energy on a wholesale basis. 13. Provide clear statutory, regulatory, or administrative authority for the Water Authority to wheel acquired or produced power to itself, the District, or entities with which the Water Authority is under contract for the purchase, treatment, transport, or production of water. Otay Water District Legislative Program 2024 6 | Page 14. Recognize and monetize all grid ancillary services that pumped hydro-energy storage provides and supports fair compensation in the wholesale energy market for such services. 15. Provide timely, efficient, and cost-effective interconnection of energy loads and resources such as solar, inline hydroelectric, pumped-energy storage, and other renewable energy generation or storage technologies to the electric distribution and transmission grid. 16. Recognize the value of large-scale hydropower and pumped-energy storage facilities in assisting the state to meet its renewable and zero-carbon emission goals of 100% by 2045. Oppose initiatives that: 1. Adversely affect the cost of energy needed to operate MWD’s facilities, SWP facilities, or the facilities of the Water Authority and the District. 2. Impose greenhouse gas reduction obligations on a public water agency for electricity purchased or produced for the sole purpose of operating its system. 3. Adversely affect the ability of the District or other water agencies in the county to own, operate, and/or construct work for supplying its own facilities with natural gas and electricity. 4. Impede the District or other water agencies in the county, the ability to contract for, deliver, and use natural gas or electricity purchased from the United States, the State of California, and any other public agency or private entity and provide, sell, exchange, or deliver the gas or electricity to itself, any public agency or private entity. 5. Reduce the District’s ability to always maintain high operational efficiency. 6. Restrict the District’s ability to expand or improve infrastructure or facilities. 7. Restrict or cap future energy demands needed for possible expansion of recycled water, potable reuse, and/or desalination projects. 8. Adversely affect the District’s ability to expand cogeneration or polygeneration at planned or existing facilities. 9. Inhibit the scientific advancement of energy and water efficient/conserving technologies that may be implemented at the District or other agency facilities. 10. Prevent the District from enhancing energy reliability and independence for its facilities. 11. Do not count or credit qualified renewable energy projects toward accomplishment and satisfaction of the California Renewables Portfolio Standard objectives. 12. Prohibit the Water Authority from wheeling - or securing statutory, regulatory, or administrative authority necessary to wheel - acquired or produced power to itself, the District, or other entities with which the Water Authority is under contract of the purchase, treatment, transport, or production of water. 13. Result in a lengthy, more complicated, or more costly interconnection of energy loads and resources, such as solar, inline-hydroelectric, pumped-energy storage, and other renewable energy generation or storage technologies to the electric distribution and transmission grid. VI. Financial Issues A. Fees, Taxes, and Charges Otay Water District Legislative Program 2024 7 | Page Support initiatives that: 1. Require the federal government and State of California to reimburse special districts for all mandated costs or regulatory actions. 2. Give special districts the discretion to cease performance of unfunded mandates. 3. Provide fiscal reform to enhance the equity, reliability, and certainty of special district funding. 4. Provide incentives for local agencies to work cooperatively, share costs or resources. 5. Provide for the stable, equitable, and reliable allocation of property taxes. 6. Continue to reform workers compensation. 7. Promote competition in insurance underwriting for public agencies. 8. Produce tangible results, such as water supply reliability or water quality improvement. 9. Require the Metropolitan Water District of Southern California (MWD) to refund or credit to its member agencies revenues collected from them that result in reserve balances greater than the maximum reserve levels established pursuant to state legislation. Oppose initiatives that: 1. Impose mandated costs or regulatory constraints on local agencies and their customers without providing subventions to reimburse local agencies for such costs. 2. Pre-empt the District or local water agencies’ ability to impose or change rates, charges, fees, or assessments. 3. Weaken the protections afforded the District, the Water Authority or other local water agencies under California’s Proposition 1A (November 2, 2004). 4. Reallocate special districts reserves to balance the state budget. 5. Reallocate special district revenues or reserves to fund infrastructure improvements or other activities in cities or counties. 6. Establish funding mechanisms that put undue burdens on local agencies or make local agencies de facto tax collectors for the state. 7. Adversely affect the cost of gas and electricity or reduce an organization’s flexibility to take advantage of low peak cost periods. 8. Add new reporting criteria, burdensome, unnecessary, or costly reporting mandates to Urban Water Management Plans. 9. Add new mandates to the Department of Water Resources (DWR) to review and approve Urban Water Management Plans beyond those already addressed in DWR guidelines. 10. Mandate that water agencies include an embedded energy calculation for their water supply sources in Urban Water Management Plans or any other water resources planning or master-planning document. 11. Weaken existing project retention and withholding provisions that limit the ability of public agencies to drive contractor performance. 12. Establish change order requirements that place an unreasonable burden on local agencies, or raise financial risk associated with public works contracts. 13. Impair the Water Authority or its member agencies’ ability to provide reasonable service at reasonable costs to member agencies or to charge all member agencies the same rate for each class of service consistent with cost-of-service requirements of the law. 14. Impair the local water agencies’ ability to maintain reasonable reserve funds and obtain and retain reasonable rates of return on its reserve accounts. Otay Water District Legislative Program 2024 8 | Page 15. Mandate a specific rate structure for retail water agencies. 16. Impose a water user fee on water agencies or water users that does not provide a commensurate and directly linked benefit in the local area or region from which the water user fee is collected. 17. Impose a water user fee for statewide projects or programs, for which the projects or programs are not clearly defined, the beneficiaries identified, and reasonable costs identified. 18. Impose a water user fee to create a state fund that can be used to finance undefined future projects and programs. 19. Allow the state to retain more than 5% of water user fees for administrative costs. 20. Do not restrict the use of water user fees to only the specific purposes for which they are imposed, without any possibility of diversion to meet other fiscal needs of the state. 21. Impose a “public goods charge” or “water tax” on public water agencies or their ratepayers. 22. Impose a fee on water users to repay the principal and interest on a statewide general obligation bond. 23. Establish regulatory or permit fees that lack a nexus to the costs of oversight. 24. Establish a broad-based user fee that does not support a specific program activity; any fee must provide a clear nexus to the benefit the fee would provide. B. Funding Support initiatives that: 1. Require the federal and state governments to provide subvention to reimburse local governments for all mandated costs or regulatory actions. 2. Provide the District, the Water Authority, and other local water agencies with additional forms of cost-effective financing for public facilities. 3. Revitalize the Title XVI federal funding program by converting new authorizations to a competitive grant program with congressional oversight while protecting existing Title XVI authorizations for the San Diego region. 4. Provide the District, Water Authority, and local water agencies with grant funding for public facilities, including developing local water resources and rehabilitation and repair of aging infrastructure, such as dams and pipelines. 5. Provide the District, other local water agencies, and water ratepayers with post-COVID-19 financial relief through a variety of means, including but not limited to, direct financial assistance and flexibility in debt management to assist water ratepayers and water suppliers. 6. Authorize financing of water quality, water security, and water supply infrastructure improvement programs. 7. Establish spending caps on State of California overhead when administering voter approved grant and disbursement programs. 8. Require disbursement decisions in a manner appropriate to the service in question. Otay Water District Legislative Program 2024 9 | Page 9. Encourage funding infrastructure programs that are currently in place and that have been proven effective. 10. Provide financial incentives for energy projects that increase reliability, diversity, and reduce greenhouse gases. 11. Continue energy rate incentives for the utilization of electricity during low-peak periods. 12. Provide loan or grant programs that encourage water conservation for water users who are least able to pay for capital projects. 13. Provide for population-based distribution of IRWM funds to ensure adequate distribution of grant funding throughout the state. 14. Provide for the use of state grant funds for binational projects where the projects benefit water supply or water quality in the San Diego region. 15. Improve and streamline the state’s reimbursement process to ensure timely remittance of IRWM funds. 16. Promote the ability of the Regional Water Management Group to administer state grant funds specifically identified more directly for IRWM Programs. 17. Require the state to rely on the local process for selection and ranking of projects included in an approved IRWM plan. 18. Provide funding or other incentives for conservation, peak management programs, water recycling, potable reuse, groundwater recovery and recharge, dam repair and rehabilitation, surface water development and management projects, including reservoir management, source water protection and watershed planning studies and facilities that sustain long-term reliable water resources. 19. Provide financial incentives to assist in the disposal of concentrate, sludge, and other byproducts created in the water treatment process. 20. Authorize, promote, and provide incentives or credits for development of local drought-resilient water supply projects such as desalination, non-potable recycling, and potable reuse projects. 21. Provide funding for potable reuse demonstration projects and studies. 22. Provide funding for infrastructure improvements at desalination facilities with eligibility for public and private partnerships. 23. Authorize federal and state funding to develop and implement regional or subregional conservation programs, including but not limited to property acquisition, revegetation programs, and watershed plans. 24. Provide state and/or federal funding for the restoration of the Salton Sea. 25. Provide federal and/or state funding to implement actions that address the ecological and water supply management issues of the Lower Colorado River from Lee's Ferry to the southerly international border with Mexico. 26. Provide federal and/or state funding to implement actions that address the ecological and water supply management issues of the Sacramento-San Joaquin River Delta. 27. Permit the use of grant funding for projects implemented under public-private partnerships where the grant provides funding for a public benefit. 28. Require the state agencies responsible for preparing the IRWM grant program guidelines to conduct a comprehensive public outreach process that ensures stakeholders have an opportunity to provide adequate input on preparation of the guidelines and that the state agencies consider and respond to comments received through the outreach process. Otay Water District Legislative Program 2024 10 | Page 29. Provide incentive, funding, and assistance to water agencies so that they can comply with AB 32 (2006) requirements, and updated statutory requirements imposed pursuant to SB 32 (2016), SB 100 (2018), and SB 1020 (2022). 30. Remove funding caps from state and federal grant and loan funding sources. 31. Streamline federal and state grant reimbursement processes. Oppose initiatives that: 1. Impose additional administrative requirements and/or restrict the District’s, Water Authority’s, or other local water agencies’ ability to finance public facilities through the issuance of long-term debt. 2. Interfere with the responsibility of a region, operating under an Integrated Regional Water Management Plan, for setting priorities and generating projects to be paid from any IRWM accounts and grants. 3. Interfere with the control exercised by the San Diego funding subregion over the use and expenditure of any water-user fee revenues that may be dedicated to the region. 4. Establish IRWM funding criteria that limit local discretion in project selection. 5. Provide for after-the-fact reduction in quantity or quality of a public water supply due to new restrictions on the operation or use of water supply facilities unless funding for alternate sources of water is provided. 6. Impose a "utility user fee" or "surcharge" on water for the purposes of financing open space/habitat preservation, restoration, or creation. C. Rates Support initiatives that: 1. Maintain the authority of water agencies to establish water rates locally, consistent with cost-of-service requirements of the law. 2. Maximize the ability of water agencies to design rate structures to meet local water supply goals and that conform to cost-of-service requirements of the law. 3. Encourage and promote education to elected officials, community/business leaders, organizations, and the public about water sales and conservation and the District and its wholesaler’s rates and what those rates support including but not limited to infrastructure, asset management, operations, maintenance, water reliability, and more. Oppose initiatives that: 1. Impair the District’s, the Water Authority’s, or local water agencies’ ability to provide reliable service at reasonable costs to member agencies or to charge all member agencies the same or similar rate for each class of service consistent with cost-of-service requirements of the law. 2. Undermine or weaken cost-of-service rate-making requirements in existing law. 3. Impair the District’s ability to maintain reasonable reserve funds and obtain and retain reasonable rates of return on its reserve accounts. 4. Mandate a specific rate structure for retail water agencies. 5. Prescribe mandatory conservation-based rate structures that override the authority of the boards of directors of local water agencies to set rate structures according to the specific needs of the water agencies. Otay Water District Legislative Program 2024 11 | Page 6. Usurp special district funds, reserves, or other state actions that force special districts to raise rates, fees, or charges. D. Water Bonds Support initiatives that: 1. Provide an equitable share of funding to San Diego County, with major funding categories being divided by county and funded on a per-capita basis to ensure bond proceeds are distributed throughout the state in proportion to taxpayers’ payments on the bonds. 2. Focus on statewide priorities, including restoration of fish and wildlife habitat, construction of an improved method of conveyance of water through or around the Delta that provides water supply reliability to Delta water users, promotion of greater regional and local self-sufficiency, surface storage, and promotion of water-use efficiency. 3. Ensure funding from various propositions for local and regional water-related projects. 4. Include within IRWM funding money that a region may use over time to develop and refine its plan and to develop institutional structures necessary to establish and implement the plan. 5. Give primary consideration to funding priorities established by local and regional entities through their IRWM planning process. 6. Ensure the application process for funding is not unnecessarily burdensome and costly, with an emphasis on streamlining the process. 7. Limit state overhead to no more than 5% of bond funding amounts. 8. Place as much emphasis and provide at least as much funding for surface storage as for groundwater storage. 9. Define the “San Diego sub-region” and “San Diego county watersheds” as “those portions of the westward-flowing watershed of the South Coast hydrologic region situated within the boundaries of San Diego County.” 10. Fund emergency and carryover storage projects. 11. Consolidate administration of all voter-approved water-related bond funding in one place, preserves existing expertise within the state bureaucracy to manage bond-funding processes, and provide consistent application and evaluation of bond funding applications. 12. Provide the state’s share of funding for projects that advance the achievement of the co- equal goals of water supply reliability and Delta ecosystem restoration. 13. Provide funding for water infrastructure that resolve conflicts in the state’s water system and provide long-term benefits to statewide issues including water supply, reliability, water quality, and ecosystem restoration. Oppose initiatives that: 1. Do not provide an equitable share of funding to San Diego County based on the San Diego County taxpayers’ proportional contribution to repayment of the bonds. 2. Do not provide funding for infrastructure that resolve statewide or regional conflicts of water supplies. 3. Do not provide funding that result in net increases in real water supply and water supply reliability. 4. Commit a significant portion of bond funding to projects that do not result in net increases in real water supply or water supply reliability. Otay Water District Legislative Program 2024 12 | Page E. Affordability Support initiatives that: 1. Abide by the Human Right to Water (AB 685, 2012) as set forth in Section 106.3 of the California Water Code which reads that, “every human being has the right to safe, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes.” The State Water Resources Control Board also has a resolution supporting this program. 2. Meet the required standards under Proposition 218 in the California Constitution regarding proportionality of water rates and the cost-of-service provisions. 3. Rely on data-driven analysis of water affordability, including considerations such as census data and economically disadvantaged communities. As such, the District supports the continued implementation of AB 2334 (2012) that requires the Department of Water Resources to provide this analysis and place it in California’s Water Plan. 4. Support the creation of a permanent low-income water rate assistance program that targets providing financial assistance to low-income ratepayers using federal resources or existing resources within either the state General Fund or cap-and-trade dollars. 5. Does not burden water districts with excessive or overly prescriptive state mandates including the collection of water taxes or water rate and boundary data, and qualification of customers for low-income assistance programs. 6. Support the expansion of the low-income assistance programs (LIHWAP) or other programs, using existing resources from the federal government, with the state General Fund or cap-and-trade dollars or other state financial resources. 7. Provide the Water Authority, its member agencies, and water ratepayers with a permanent low-income customer assistance program. 8. Encourage and promote education to elected officials, community/business leaders, organizations, and the public about affordability. Oppose initiatives that: 1. Is not targeted appropriately: Any low-income water rate assistance program must be limited in scope to those individuals. By seeking to do too much, effectiveness could be limited. Examples of this could include extending program resources to domestic wells or water-use efficiency programs. 2. Does not have a funding source: Any low-income water rate assistance program needs to identify specific sources of sustainable funding and does not include a water tax or water surcharge. 3. Does not reinvent the wheel: Any low-income water rate assistance program should be built upon and use the resources of an existing benefit distribution organization or system, such as CalFresh, rather than requiring water agencies to add the operating expense of creating and administering a new method. VII. Governance and Local Autonomy Support initiatives that: 1. Expand local autonomy in governing special district affairs. 2. Promote comprehensive long-range planning. Otay Water District Legislative Program 2024 13 | Page 3. Assist local agencies in the logical and efficient extension of services and facilities to promote efficiency and avoid duplication of services. 4. Streamline the Municipal Service Review Process or set limits on how long services reviews can take or cost. 5. Reaffirm the existing “all-in” financial structure or protect the Water Authority voting structure based on population. 6. Promote measures that increase broader community and water industry representation/appointments on State decision making bodies. 7. Ensure an open and transparent process for adoption of regulations, policies, and guidelines. 8. Preserve the District and other local water agencies’ ability to establish local priorities for water resources planning decisions. Oppose initiatives that: 1. Assume the state legislature is better able to make local decisions that affect special district governance. 2. Create one-size-fits-all approaches to special district reform. 3. Unfairly target one group of local elected officials. 4. Usurp local control from special districts regarding decisions involving local special district finance, operations, or governance. 5. Diminish the power or rights of the District’s governing body to govern the District’s affairs. 6. Diminish the power or rights of the District to govern relations with its employees. 7. Modify the committee or board voting structure or District and member agency board representation on the Water Authority Board of Directors unless the District’s Board has expressly authorized such changes. 8. Create unfunded local government mandates. 9. Create costly, unnecessary, or duplicative oversight roles for the state government of special district affairs. 10. Create new oversight roles or responsibility for monitoring special district affairs. 11. Change the San Diego County Water Authority Act regarding voting structure unless it is based on population. 12. Shift the liability to the public entity and relieve private entities of reasonable due diligence in their review of plans and specifications for errors, omissions, and other issues. 13. Place a significant and unreasonable burden on public agencies, resulting in increased cost for public works construction or their operation. 14. Impair the ability of water districts to acquire property or property interests required for essential capital improvement projects. 15. Increase the cost of property and right-of-way acquisition or restrict the use of right-of-ways. 16. Work to silence the voices of special districts and other local government associations on statewide ballot measures impacting local government policies and practices, including actions that could prohibit special districts and associations from advocating for positions on ballot measures by severely restricting the private resources used to fund those activities. Otay Water District Legislative Program 2024 14 | Page 17. Prescribe mandatory conservation-based or other rate structures that override the authority of the board of directors to set its rate structure. 18. Circumvent the legislative committee process, such as the use of budget trailer bills, to advance policy issues including impacting special districts without full disclosure, transparency, or public involvement. 19. Restrict the District’s ability to utilize a demand forecasting methodology that is best suited locally and for the region. 20. Impose mandates requiring specific water resources be developed by water agencies that fail to consider local factors such as water reliability, hydrologic and geographic characteristics, and the economic, political, public acceptance, social environment, which can influence selection of resources and/or fails to consider or conflicts with existing local and regional planning policies and implementation priorities. 21. Limit the District’s ability to establish local priorities for water resources planning decisions. 22. Impede the District’s ability to conduct its critical mission efficiently and effectively of always providing and sustaining critical services and under all conditions. VIII. Imported Water Issues A. Bay-Delta i. Co-Equal Goals Support initiatives that: 1. Require the Delta Stewardship Council or DWR to provide periodic analyses of the cost of the proposed Delta improvements to the Legislature and the public. 2. Provide conveyance and storage facilities that are cost-effective for the San Diego region’s ratepayers, improve the reliability and quality of the San Diego region’s water supplies, and protect the Bay-Delta’s ecosystem. 3. Continue to support the co-equal goals of water supply reliability and environmental restoration embodied in the 2009 Delta bill package. 4. Improve the ability of water-users to divert water from the Delta during wet periods, when impacts on fish and the ecosystem are lower and water quality is higher. 5. Encourage the development of a statewide water transfer market that will improve water management and allow more efficient use of available resources. 6. Support improved coordination of Central Valley Project and State Water Project (SWP) operations and implementation of voluntary agreement that are fair to the users of both projects and do not unfairly shift costs to SWP contractors. 7. Support continued state ownership and operation of the SWP, including project facilities, as a public resource. 8. Ensure that any reorganization of the State Water Project, including operations and management, preserves the ability for non-State Water Project contractors to access the facility for transportation of water to a non-State Water Project contractor. 9. Authorize and appropriate the federal share of funding for the long-term Bay-Delta solution, including for the EcoRestore Program. 10. Provide the ongoing state share of funding for the EcoRestore Program. Otay Water District Legislative Program 2024 15 | Page 11. Provide state funding for aquatic toxicity monitoring in the Bay-Delta. Such legislation shouldnot place a surcharge on water supply exports, nor should it substantively reduce funding forother measures that protect the environment and public health. Oppose efforts that: 1. Impose water user fees to fund ecosystem restoration and other public purpose, nonwater-supply improvements in the Delta that benefit the public at large.2.Transfer operational control of the State Water Project or any of its facilities to the Metropolitan Water District of Southern California (MWD), the State Water Contractors, theCentral Valley Project Contractors, the State and Federal Contractors Water Agency, or anyentity comprised of MWD or other water project contractors, or any other special interestgroup. ii.Bay-Delta Conveyance Project Support initiatives that: 1.Are consistent with the Water Authority’s Board of Directors’ July 25, 2019 adopted Bay- Delta project policy principles, including the following: a.On April 29, 2019, Governor Newsom signed Executive Order N-10-19, directing thepreparation of a water resilience portfolio approach that meets the needs ofCalifornia’s communities, economy, and environment through the 21st century,including consideration of multi-benefit approaches that meet multiple needs at once,and a single-user tunnel Bay-Delta project. b.The Water Authority’s Board supports Governor Newsome’s Executive Order N-10-19 and directs staff to inform the Newsome Administration that its support for asingle-tunnel Bay-Delta project is expressly conditioned upon the project costs beingcharacterized by the Department of Water Resources (DWR) as conservation, or supply charges, as similar facilities historically have been defined in the Metropolitan Water District’s (MWD) SWP contract with DWR.c.As reflected in Table 2 of DWR’s Appendix B to Bulletin 132-17, Data andComputation Used to Determine Water Charges, and for which costs are recovered inArticle 22(a) of Delta Water Charge of MWD’s SWP Contract; allow for the exemption of north-of-Delta SWP contractors. 2. Support the establishment of an independent and transparent oversight function to monitorand provide regular updates on project implementation progress, including expendituretracking, construction progress, project participants’ contributions, and all other relevantactivities and developments. 3.Allow access to all SWP facilities, including project facilities, to facilitate water transfers. B.Metropolitan Water District Support initiatives that: 1. Provide an appropriate level of accountability and cost control over MWD spending. 2.Protect and safeguard the Water Authority’s Preferential Rights in the Metropolitan WaterDistrict Act. Otay Water District Legislative Program 2024 16 | Page 3.Require MWD to refund or credit to its member agencies revenues collected from them thatresult in reserve balances greater than the maximum reserve levels established pursuant tostate legislation. 4.Require MWD to implement actions that advance and support its long-term financial stability,fiscal sustainability, and that moderate fluctuations in rates and charges for its memberagencies from year to year, in a publicly transparent manner.5.Amend the Metropolitan Water District Act to change voting allocation on its Board ofDirectors based on a member agency’s total financial contribution to MWD, in a manner that is fair and equal to ratepayers, and similar to the voting allocation method of the CountyWater Authority Act. C.Colorado River Support initiatives that: 1. Supports implementation and funding of the California Colorado River Water Use Plan,including the Lower Colorado River Multi-Species Conservation Program2.Provide funding for Colorado River salinity control projects and other water quality management efforts. 3.Provide for state and federal authorizations and appropriations of non-fee-based funds toimplement Salton Sea mitigation and the State’s phased approach to restoration in the form ofthe Salton Sea Management Program consistent with its obligations under Chapters 611, 612,and 613 of the Statutes of 2003. 4.Limit the Quantification Settlement Agreement mitigation costs imposed on funding parties to the amount committed in accordance with the original QSA legislation.5. Provide a governing structure and/or specified managing office over the state's Salton SeaManagement Program to provide guidance and oversight of restoration activities.6. Support the sustainability of the Colorado River and provide operational flexibility through the development of storage, including Lake Mead and additional storage opportunities regionally, and through the renegotiation of the new interim shortage guidelines for continuedoperation of the River.7. Allow for the option to create an alternate conveyance route, when technically and financiallyfeasible, for reliable delivery of the Water Authority’s Independent Colorado River water supplies and integration of compatible partnership projects along the proposed conveyance routes as a model of the Governor’s Water Resilience Portfolio approach to watermanagement.8. Support the State’s Salton Sea Management Program under the guidelines of the revisedWater Order (Stipulated Order) adopted by the State Water Resources Control Board in November 2017. 9.Preserve the California Colorado River Board10.Ensure the interests of the members of the California Colorado River Board continue to beaddressed in any state government reorganization.11.Allow for storage of the Water Authority’s Colorado River water supplies to provide enhanced flexibility with annual transfer volumes, support drought contingency planning, and align with the Governor’s Water Resilience Portfolio approach to water management. Oppose initiatives that: Otay Water District Legislative Program 2024 17 | Page 1. Impose additional mitigation costs or obligations for the Salton Sea on the non-state parties tothe Quantification Settlement Agreement.2.Eliminate the California Colorado River Board without providing a comparable structure or forum that ensures the Water Authority's interests in the Colorado River are preserved. D.State Water Project Support initiatives that: 1.Provide for development of a comprehensive state water plan that balances California'scompeting water needs, incorporates the water resources and infrastructure concepts includedin the Governor’s “Water Resilience Portfolio” and “California’s Water Supply StrategyAdapting to a Hotter, Drier, Future,” and results in a reliable and affordable supply of high- quality water for the State of California and the San Diego region. Oppose initiatives that: 1. Make urban water supplies less reliable or substantially increases the cost of imported waterwithout also improving the reliability and/or quality of the water. 2.Revise the Central Valley Project Improvement Act to Jeopardize the Act's environmental integrity, compromise State Water Project supply reliability a n d/or limit the ability of urbanagencies to transfer and/or bank CVP water for use both within and outside the CVP servicearea. 3.Transfer operational control of the State Water Project or any of its facilities to MWD, the State Water Project contractors, Central Valley Project contractors, the State and Federal Contractors Water Agency, any entity comprised of MWD or other water project contractors, or any other special interest group. IX.Optimize District Effectiveness Support initiatives that: 1.Manage District resources in a transparent and fiscally responsible manner. 2.Give utilities the ability to avoid critical peak energy pricing or negotiate energy contracts thatsave ratepayers money.3.Develop reasonable Air Pollution Control District engine permitting requirements.4.Reimburse or reduce local government mandates.5. Allow public agencies to continue offering defined benefit plans. 6.Result in predictable costs and benefits for employees and taxpayers.7.Eliminate abuses.8.Retain local control of pension systems.9.Are constitutional, federally legal, and technically possible. Oppose initiatives that: 1.Restrict the use of, or reallocate, district property tax revenues to the detriment of specialdistricts.2.Create unrealistic ergonomic protocol.3.Micromanage special district operations. 4.Balance the state budget by allowing regulatory agencies to increase permitting fees. Otay Water District Legislative Program 2024 18 | Page 5. Tax-dependent benefits. 6. Require new reporting criteria on energy intensity involved in water supply. X. Safety, Security, and Information Technology Support initiatives that: 1. Provide funding for information security upgrades to include integrated alarms, access/egress, and surveillance technology. 2. Provide incentives for utilities and other local agencies to work cooperatively, share costs or resources. 3. Provide funding for communication enhancements, wireless communications, GIS, or other technological enhancements. 4. Encourage or promote compatible software systems. 5. Fund infrastructure and facility security improvements that include facility roadway access, remote gate access, and physical security upgrades. 6. Protect state, local, and regional drinking water systems from terrorist attack or deliberate acts of destruction, contamination, or degradation. 7. Provide funds to support training or joint training exercises to include contingency funding for emergencies and emergency preparedness. 8. Equitably allocate security funding based on need, threats, and/or population. 9. Encourage or promote compatible communication systems. 10. Encourage and promote funding of Department of Homeland Security Risk Mitigation programs. 11. Recognizes water agencies as emergency responders in the event of a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent and mitigate loss or impairment of life, health, property, or essential public services due to natural disasters (e.g., wildfires, earthquakes), power outages as well as terrorist and other criminal activities. 12. Provide state grants or other funding opportunities to support seismic risk assessment and mitigation plans, or to mitigate vulnerabilities. 13. Provide funding for projects that enhance security against terrorist acts or other criminal threats to water operation, services, facilities, or supplies. 14. Provide funding for projects that improve the security of the District facilities and operations. 15. Provide funding to support technologies that support remote working, when necessary to prevent loss of or damage to life, health, property, or essential public services. Oppose initiatives that: 1. Create unnecessary, costly, or duplicative security or safety mandates. 2. Require expanded water system descriptions or additional public disclosure of public water systems details for large water suppliers in Urban Water Management Planning documents, potentially compromising public water systems, and creating a conflict with the Department of Homeland Security’s recommendation to avoid reference to water system details in plans available to the public. XI. Water Quality Issues Otay Water District Legislative Program 2024 19 | Page Support initiatives that: 1. Assure cost-effective remediation and cleanup of contaminates of concern that have impacted groundwater and surface water. 2. Incorporate sound scientific principles in adopting drinking water standards for drinking water concerns. 3. Revise NPDES standards and procedures to facilitate inland discharge and use of recycled water. 4. Establish appropriate quality standards, testing procedures, and treatment processes for emerging contaminants. 5. Alter the definition of “lead free” to reduce the permissible amount of lead in fixtures, plumbing, and pipe fittings to be installed for the delivery of drinking water. 6. Exempt purified wastewater from regulation as a discharge under the Clean Water Act. 7. Protect child public health by requiring schools to undertake lead testing in school drinking water systems. 8. Implement source control for management prevention of contamination by constituents of emerging concern. 9. Provide the necessary funding for research on the occurrence, treatment, health effects, and environmental cleanup related to contamination of drinking water sources. 10. Implement and fund the San Diego Regional Water Quality Control Board’s triennial review of water quality standards. 11. Provide funding and support for Colorado River salinity control projects and other water quality management efforts. 12. Direct the state’s participation or assistance in water quality issues related to or threatening the Colorado River water source. 13. Streamline permitting of facilities constructed for the purpose of improving water quality. 14. Ensure consistent application of the law by the State Water Resources Control Board and the nine regional water quality control boards. Oppose initiatives that: 1. Eliminate the State Water Resources Control Board and/or the nine regional water quality control boards without ensuring the functions and expertise of the boards are maintained in any reorganized entity. 2. Regulate the conveyance, storage, or release of water supplies as discharge under the Clean Water Act and other water quality control laws. 3. Make water suppliers financially and legally responsible for mitigation of pollution contamination by third parties. 4. Make water suppliers financially and legally responsible for testing or correction of any water quality-related issues associated with private property or on-site plumbing systems. XII. Water Recycling and Potable Reuse Support initiatives that: 1. Reduce restrictions on recycled water usage or promote consistent regulation of recycled water projects to reduce impediments to the increased use of recycled water. Otay Water District Legislative Program 2024 20 | Page 2. Reduce restrictions on injecting recycled water into basins where there is no direct potable use. 3. Advocate for direct potable reuse. 4. Advocate for recycled water use upstream of lakes and reservoirs if protected by urban water runoff protection systems. 5. Provide financial incentives for recharge of groundwater aquifers using recycled water. 6. Make recycled water regulations clear, consolidated, and understandable to expedite related project permitting. 7. Promote recycled water as a sustainable supplemental source of water. 8. Allow the safe use of recycled water. 9. Facilitate development of technology aimed at improving water recycling. 10. Increase funding for water recycling projects. 11. Support continued funding of the Title XVI Water Reclamation and Reuse Program including Water Reclamation and Reuse Projects, the WaterSMART Program, and the Desalination and Water Purification Research Program. 12. Increase awareness of the ways recycled water can help address the region’s water supply challenges. 13. Create federal and state incentives to promote recycled water use and production. 14. Establish federal tax incentives to support U.S. companies in the development of new water technologies that can lower productions costs, address by products such as concentrates, and enhance public acceptance of recycled water. 15. Establish a comprehensive national research and development, and technology demonstration, program to advance the public and scientific understanding of water recycling technologies to encourage reuse as an alternative source of water supply. 16. Provide incentives for local agencies to work cooperatively, share costs or resources to promote or expand the use of recycled water. 17. Further refine emergency regulations to reward local suppliers that have invested in using recycled water for landscape irrigation to maintain an incentive to continue expanding areas served by recycled water. 18. Encourage the use of recycled water in commercial, industrial, institutional, and residential settings. 19. Recognize and support the development of potable reuse as a critical new water supply. 20. Define purified recycled water as a source of water supply and not as waste. 21. Mandate the reduction of wastewater discharges to the ocean absent inclusion of funding to offset the significant costs of implementation. 22. Authorize local governmental agencies to regulate the discharge of contaminants to the sewer collection system that may adversely affect water recycling and reuse. 23. Authorize and facilitate expanded use of local water resources including water recycling, potable reuse, graywater, and rainwater harvesting (e.g., cisterns and rain barrels), and brackish groundwater. 24. Streamline regulatory processes and requirements to encourage and support the development of potable reuse and non-potable reuse as a municipal water supply. 25. Recognize the entire interconnected urban water cycle, as well as public health and safety, must be taken into consideration in long-term water use efficiency policies, particularly including the unintended consequences of declining flows on water, wastewater, potable reuse, and recycled water systems. Otay Water District Legislative Program 2024 21 | Page 26. Encourage dual plumbing in new development where non-potable recycled water is likely to available to enable utilization of recycled water. 27. Promote uniform regulatory interpretation of state recycled water system standards. 28. Support beneficial revisions to the California Plumbing Code that facilitate recycled water systems. Oppose initiatives that: 1. Restrict use of recycled water for groundwater recharge. 2. Establish new water or recycled water fees solely to recover State costs without also providing some benefit. 3. Limit the ability of local governmental agencies to regulate the discharge of contaminants to the sewer collection system that may adversely affect water recycling and reuse. 4. Establish unreasonable regulatory requirements or fees for the safe use of recycled water, which may unreasonably impede or create a disincentive to its further development. 5. Mandate the reduction of wastewater discharges to the ocean absent inclusion of funding to offset the significant costs of implementation. 6. Water use efficiency standards (AB 1668), which do not reflect the impact that higher TDS recycled water has on the usage rates to reduce salt loading in areas of use. XIII. Water Rights Modernization Support initiatives that: 1. Protect existing water rights, water-rights priority, and local agencies’ ability to use water resources for their present and future water supply reliability and environmental well-being. 2. Support funding for data modernization tools needed to monitor and enforce water rights priorities and protect State Water Project supplies, including funding and technical assistance to fully implement existing law requiring metering of diversions and potential legislation or regulation aimed at providing real-time water diversion data. 3. Support voluntary water transfers and exchanges as the means to reallocate water supplies, including for the environment, to meet water supply reliability goals and achieve voluntary agreements on the implementation of the Bay-Delta Water Quality Control Plan and interstate solutions to limited Colorado River supplies. 4. Support more flexible regulations to enhance the ability to divert water in times of high storm runoff and snow melt while protecting existing water rights and the environment. 5. Support increases in civil penalties to deter violations of State Board orders, including curtailment orders. XIV. Water Services and Facilities Support initiatives that: 1. Provide funding to implement actions identified in the California Water Action Plan to lay a solid fiscal foundation for implementing near-term actions, including funding for water efficiency projects, wetland and watershed restoration, groundwater programs, conservation, flood control, and integrated water management and result in a reliable supply of high-quality water for the San Diego region. Otay Water District Legislative Program 2024 22 | Page 2.Promote the coordination and integration of local, state, and federal climate change policiesand practices to the greatest extent feasible.3.Fund or otherwise facilitate ongoing implementation of the Quantification Settlement Agreement.4.Provide reliable water supplies to meet California’s short and long-term needs.5.Promote desalination pilot studies and projects.6.Encourage feasibility studies of water resource initiatives.7. Increase funding for infrastructure and grant programs for construction, modernization or expansion of water, wastewater treatment, reclamation facilities and sewer systems includingwater recycling, groundwater recovery and recharge, surface water development projects andseawater desalination.8.Fund enhancements to water treatment, recycling, and other facilities to meet increasedregulations. 9. Mandate uniform or similar regulations and procedures by state agencies in the processingand administering of grants and programs.10.Streamline grant application procedures.11. Reduce regulations and other impediments for willing sellers and buyers to engage in watertransfer agreements. 12.Promote or assist voluntary water transfers between willing buyers and willing sellers andmove those transactions through without delay.13.Streamline the permitting and approval process for desalination and other water-relatedfacilities and implement water transfers that will improve water management.14.Establish reasonable statewide approaches to sewer reporting standards. 15.Generate greater efficiencies, better coordinate program delivery, and eliminate duplication inprograms for source water protection without lessening the focus on public health of thestate’s Drinking Water Program.16.Target efforts to fix specific issues with water supplies within the state’s Drinking Water Program. 17. Establish federal tax incentives to support U.S. companies in the development of newdesalination technologies that can lower productions costs, eliminate, or reduce impingementor entrainment, reduce energy use, and enhance public acceptance of desalinated water.18. Establish a comprehensive national research and development, and technology demonstration program to advance the scientific understanding of desalination to expand its use as an alternative source of water supply.19.Require the State Water Resources Control Board to exercise its authority, ensure robustfunding, and implement the Salton Sea mitigation and restoration plan, meet state obligations,and work with QSA stakeholders to find workable solutions to ensure the continuation of IID water transfers. 20. Support solutions to water supply issues that address common challenges, provide acomprehensive approach that is fair to all users, balance the needs of urban and ruralcommunities, and take into consideration the interests of all stakeholders as well as the impactto the environment. 21. Further refine emergency drought regulations to eliminate a cap on credits and adjustments so as not to impose undue burden, financial or otherwise, on communities that have alreadyinvested in water conservation, development of new water sources, storage, or lossprevention. Otay Water District Legislative Program 2024 23 | Page 22.Provide funding for water infrastructure development, infrastructure security, andrehabilitation and replacement projects that benefit ratepayers.23.Provide funding for habitat preservation programs that address impacts resulting from construction or operation of water system facilities.24.Provide funding for projects that enhance security against terrorist acts or other criminalthreats to water operation, services, facilities, or supplies.25.Provide incentives that encourage contractors to recycle or reduce waste associated withconstruction of water facilities. 26.Improve the local agencies’ efforts to maintain and protect its property, rights of way,easements, pipelines, and related facilities and minimizes liability to local agencies and theDistrict.27.Protect the local agencies’ properties from restrictions when surrounding properties areincorporated into preservation areas. 28. Encourage the use of current and emerging technologies for monitoring and assessing thecondition of large diameter pipelines.29.Encourage water suppliers to develop and execute asset management programs that includevisual inspections, internal/external inspections, asset condition assessments, corrosionmitigation, and reis analysis in a manner that recognizes the individuality and uniqueness of each water supplier and its systems.30.Improve the District’s efforts to maintain and protect its property, rights of way, easements,pipelines, and related facilities and minimizes liability to the District.31.Protect the District, other agencies and the Water Authority properties from restrictions whensurrounding properties are incorporated into preservation areas. 32.Provide funding to water agencies for the voluntary retrofit of facilities for on-site generationof chlorine.33. Provide funding for water supplier asset management programs that involve the activemonitoring, repair, or replacement of physical assets and infrastructure, which includes pipes, valves, facilities, equipment, and other infrastructure. 34. Provide for restrictions on price gouging during public safety power shutoff events and for atleast 72 hours following restoration of power.35.Provide that de-energization or public safety power shutoff events may be included as acondition constituting a state of emergency or local emergency. 36. Provide a tax emption for the sale of, or storage, use, or consumption of, a backup electrical resources, which is purchased for exclusive use by a city, county, special district, or otherentity of local government during a de-energization or public safety power shutoff event.37.State that the use of alternative power sources (such as generators) by essential public servicesduring de-energization or public safety power shutoff events shall not be limited by any state or local regulations or rules. 38. Recognize the critical role the District, local agencies, and the Water Authority play as PublicSafety Partners in Public Safety Power Shutoff events and other natural or man-madedisasters. Further recognizes the importance of the agency’s ability to provide immediate andsustained response for extended periods of time. 39.Provide financial support to local projects designed to mitigate or adapt to potential negative impacts of climate change on water supply reliability.40. Investigate and provide financial support to projects designed to mitigate potential negativeimpacts of climate change on water supply reliability. Otay Water District Legislative Program 2024 24 | Page Oppose initiatives that: 1.Restrict local control and discretions over water facilities, asset management, and facility operations.2.Make urban water supplies less reliable or substantially increases the cost of imported waterwithout also improving the reliability and/or quality of the water.3.Create unrealistic or costly water testing or reporting protocol.4. Disproportionately apportion the cost of water. 5.Create undo hurtles for seawater desalination projects.6. Create unreasonable or confusing sewer reporting standards.7.Create administrative or other barriers to sales between willing buyers and willing sellers thatdelay water transfers.8.Create a broad-based user fee that does not support a specific local program activity or benefit; any fee must provide a clear nexus to the benefit local ratepayers or local watersupplies from the establishment that charge or fee would provide.9.Create unrealistic or is costly to obtain water quality standards for potable water, recycledwater, or storm water runoff.10. Change the focus of the state’s Drinking Water Program or weaken the parts of the program that work well.11. Lessen the focus on public health of the state’s Drinking Water Program.12. Impose undue burden, financial or otherwise, on communities that have already invested inwater conservation, development of new water sources, storage, or loss prevention.13. Impose additional mitigation costs or obligations for the Salton Sea on the non-state parties to the Quantification Settlement Agreement.14.Impair the District and other local water agencies’ ability to provide and operate the necessaryfacilities for a safe, reliable, and operational flexible water system.15. Limit local agencies’ sole jurisdiction over planning, design, routing, approval, construction, operation, or maintenance of water facilities. 16.Restrict local agencies’ ability to respond swiftly and decisively to an emergency thatthreatens to disrupt water deliveries or restricts the draining of pipelines or other facilities inemergencies for repairs or preventive maintenance.17.Authorize state and federal wildlife agencies to control, prevent, or eradicate invasive species in a way that excessively interferes with the operations of water supplies. 18.Prohibit or in any way limit the ability of local agencies from making full beneficial use ofany water, wastewater, or recycling facility and resource investments.19.Prohibit the use of alternative contract procurement methods that can be utilized in theconstruction of water facilities. 20.Shift the risks of indemnity for damages and defense of claims from contractors to the District.21.Impair local agencies’ efforts to acquire property or property interests required for essentialcapital improvement projects or acquisition of property to meet pipeline water drain-downneeds for existing facilities. 22.Increase the cost of property and right of way acquisition. 23.Restrict the District’s use of public rights of way or increase the cost of using public rights ofway. Otay Water District Legislative Program 2024 25 | Page 24.Restrict the transfer of property acquired for purposes of environmental mitigation orenvironmental mitigation credits to other public or private entities for long-term management.25.Establish prescriptive leak loss control requirements for the operation, maintenance, and asset management of water conveyance and distribution systems, which fail to consider full life-cycle costing.26.Establish meter testing requirements for source water meters that fail to consider industrystandards and cost-effectiveness.27.Limit the discretion of the District from protecting security and privacy of comprehensive inventories of all assets, which includes infrastructure location, condition, performance, anduseful life.28. Impair local agencies’ ability to execute the planning, design, and construction of projectsusing their own employees.29.Limit the autonomy of discretion of water supplier to develop and execute asset management inspection programs that include visual inspections, internal/external inspections, assetcondition assessments, and corrosion mitigation in a manner that recognizes the individualityand uniqueness of each water supplier and its systems.30.Authorize air quality management districts or other regulatory bodies to adopt or maintainrules that would limit or prohibit a local government entity’s use of a state and/or federally complaint natural gas-powered generator during a de-energization or public safety powershutoff event.31. Would inhibit the District from fulfilling its critical role as a Public Safety Partner and makingimmediate and sustained response in a Public Safety Power Shutoff event or and other naturalor man-made disasters, such as the CARB Advanced Clean Fleet regulation. 32. Would inhibit the District from fulfilling its critical role as an essential service provider fromprocuring and operating fleets which meet the needs to perform routine and emergencymaintenance of water and wastewater systems, such as the CARB Advanced Clean Fleetregulation. 33.Require incorporation of climate change considerations into regional and local water management planning that does not provide flexibility to the local and regional water agencies in determining the climate change impact and identification of adaptation and mitigation measures. 34.Impose top-down “one-size-fits-all” climate change mandates that fail to account for hydrological, meteorological, economic, and social variation across the state and/or that fail to incorporate local and regional planning and implementation priorities and protocols. XV. Water Use and Efficiency Support initiatives that: 1. Provide funding for incentives for water-use efficiency and water conservation programsincluding water-efficient devices, practices and demonstration projects and studies.2. Encourage the installation of water-efficient fixtures in new and existing buildings. 3.Promote the environmental benefits of water-use efficiency and water conservation.4. Enhance efforts to promote water-use efficiency awareness.5.Offer incentives for landscape water-efficient devices including, but not limited to ETcontrollers and soil moisture sensors.6.Develop landscape retrofit incentive programs and/or irrigation retrofit incentive programs. Otay Water District Legislative Program 2024 26 | Page 7.Permit or require local agencies to adopt ordinances that require or promote water-efficientlandscapes for commercial and residential developments.8.Create tax incentives for citizens or developers who install water-efficient landscapes. 9.Create tax incentives for citizens who purchase high-efficiency clothes washers, dual-flushand high-efficiency toilets, and irrigation controllers above the state standards.10. Expand community-based water-use efficiency and education programs.11.Facilitate and encourage the use of rainwater-capture systems, i.e., rain barrels, cisterns, etc.and alternative water sources, i.e., air conditioner condensate for use in irrigation. 12. Develop incentives for developers and existing customers to install water-efficient landscapein existing developments or new construction.13.Encourage large state users to save water by implementing water-efficient technologies in allfacilities both new and retrofit.14.Encourage large state water users to save water outdoors. 15. Educate all Californians on the importance of water, and the need to conserve, manage, andplan for the future needs.16.Encourage technological research targeted to more efficient water use.17.Give local agencies maximum discretion in selecting water-use efficiency and conservationprograms that work for their customers and the communities they serve. 18.Require the Department of Water Resources to implement a uniform statewide turf rebatesubsidy or incentive program.19.Restrict Property Owner Associations from forbidding the use of California native plants,other low water use plants, mulch, artificial turf, or semi-permeable materials in well-maintained landscapes. 20.Restrict Property Owner Associations from forbidding retrofits of multiple unit facilities forthe purpose of submetering, if feasible.21.Ensure plumbing codes and standards that facilitate the installation and/or retrofit of waterefficient devices. 22.Establish standards for the utilization of high-efficiency commercial and residential clothes washers.23. Provide federal tax-exempt status for water-use efficiency rebates, consistent with income taxtreatment at the state level.24. Encourage the use of graywater where it complies with local guidelines and regulations and is cost-effective. 25. Provide incentives, funding, and assistance to water agencies so that they can meet the waterdemand management measure requirements in the Urban Water Management Planning Act.26. Provide incentives, funding, and other assistance to facilitate water-use efficiencypartnerships with the energy efficiency sector. 27. Provide incentives, funding, and other assistance where needed to facilitate market transformation and gain wider implementation of water efficient indoor and outdoortechnologies and practices.28.Recognize local control in determining water use efficiency criteria, such as impact ofrecycled water salinity on irrigation use and efficiency for the application of non-potable recycled water. 29. Encourage reasonable tracking of water use and improved efficiency in the Commercial,Industrial, and Institutional (CII) sector. Otay Water District Legislative Program 2024 27 | Page 30. Recognize local control in determining how to meet an overall efficient water use goal, basedon the combined efficient indoor use, outdoor use, and leak loss, as established under thecriteria provided for in statute. 31.Ensure accurate and streamlined reporting of implementation of water-use efficiency andconservation measures.32.Promote statewide implementation of water-use efficiency best management practices anddemand management measures as defined in the Urban Water Management Planning Act. Oppose efforts that: 1.Weaken federal or state water-efficiency standards.2.Introduce additional analytical and reporting requirements that are time-consuming for localagencies to perform and result in additional costs to consumers yet yield no water savings.3.Permit Property Owners Associations to restrict low water use plants, mulch, artificial turf, or semi-permeable materials in landscaping.4.Repeal cost-effective efficiency standards for water-using devices.5.Repeal cost-effective efficiency standards for water-using devices.6.Create stranded assets by establishing long-term demand management water-use efficiencyand water supply requirements that are inconsistent with the Urban Water Management Planning Act.7.Prescribe statewide mandatory urban and agricultural water-use efficiency practices,including, but not limited to, methods, measures, programs, budget allocation, and designationof staff dedicated to water conservation programs, that override the authority of the boards ofdirectors of local water agencies to adopt management practices that are most appropriate for the specific needs of their water agencies.8.Mandate regulation of the CII Sector in a manner that is discriminatory, or sets unachievableBest Management Practices or compliance targets, or would otherwise impair economicactivity or the viability of the CII sector. 9.Mandate that water agencies include an embedded energy calculation for their water supply sources in the Urban Water Management Plan or any other water resource planning or masterplanning document.10. Require redundant reporting of water conservation-related information. XVI.Workforce Development Support initiatives that: 1. Advocate for local, regional, and state programs that support a high-performing workforce and increase the talent pool for water agencies. 2. Advocate for military veterans in the water industry workforce to ensure that veterans receive appropriate and satisfactory credit towards water and wastewater treatment system certifications in California for work experience, education, and knowledge gained in military service. 3.Lower employment barriers for military veterans and transitioning military and that sustain vital water and wastewater services for the next generation. 4. Recruit and support veterans and transitioning military through internships, cooperative work experiences, and other resources. Otay Water District Legislative Program 2024 28 | Page 5.Recruit and support underserved communities in the water industry through internships, cooperative work experiences, and other resources. 6. Advocate and encourage candidate outreach and recruitment in relation to mission-critical job categories in water and wastewater. 7.Ensure advanced water treatment operators and distribution system operators of potable reuse and recycled water facilities have a career advancement path as certified water and/or wastewater treatment plant operators. 8.Increase the number of educational institutions that provide water-industry related training and related program criteria including but not limited to trades, certifications, and degrees. 9.Increase the talent pool of future water industry workers through educational programs, internships, and other resources. 10. Provide funding to educational institutions, water agencies, and workforce students regarding careers in the water industry. 11. Develop qualified candidates for positions in the water industry. 12.Build awareness of water industry-related jobs through student outreach including but not limited to K-12, community colleges, universities, and other educational institutions as well as outreach to the public. 13.Promote regional water and wastewater workforce development programs. Oppose initiatives that: 1. Hinder military veterans from using previous experience, education, and knowledge toward acareer in water.2.Regulate agencies from hiring an experienced, educated, and talented water-industryworkforce. 27707746.1 Anticipated Top 10 Legislative Priorities for 2024 1.Affordability and Proposition 218 – Water affordability became one of ACWA and Otay’stop issues during the 2021-2022 legislative session and again in the 2023-2024 session. In 2020, the federal government funded the Low-Income Household Water AssistanceProgram (LIHWAP) to provide financial assistance to low-income Californians with residential water utility costs and debt repayment. California was allocated $116 million inone-time funding to provide LIHWAP assistance. The Department of Community Servicesand Development (CSD) was designated as the administering agency for LIHWAP inCalifornia. In response to low LIHWAP participation and grant expenditure, CSD expandedeligibility to include current bills to maximize grant expenditures through August 2023, the end of the federal grant period, and was further extended until March 31, 2024. United States Senator Alex Padilla has introduced S. 3830, a LIHWAP bill that, if passed,would establish a permanent, nationwide water assistance program that is modeled after thecurrent program, due to expire in March 2024. The bill would authorize grants to States, Territories, and Tribes to assist low-income households in paying arrearages and other ratescharged to such households for drinking water or wastewater services; provide technicalassistance to rural, Tribal, and underserved owners or operators of public water systems ortreatment works; align income eligibility with the Low Income Household Energy AssistanceProgram (LIHEAP), Temporary Assistance for Needy Families (TANF), Supplemental Nutrition Assistance Program (SNAP), Supplemental Security Income, and means-testedveterans’ programs; and transfer authority of the program from HHS to the EPA uponcompletion of the Rural and Low-Income Water Assistance Pilot Program authorized in theBipartisan Infrastructure Law. Last session, Assembly Bill 399 (Boerner) was signed into law specific to the San DiegoCounty Water Authority to protect its ratepayers. The District Authorized Brownstein PolicyAdvisors to lobby in support of the bill, joining the San Diego County Water Authority’s andCity of San Diego’s lobbying effort. The law as signed into law requires as an additional condition to the Local Agency Formation Commission (LAFCO) process for allowing the detachment of a public agency from their relevant county water authority, that the majority ofthe voters within the jurisdiction of the county water authority vote to approve thedetachment at a scheduled election. Three bills have been introduced this session regarding Proposition 218 to further protect water agencies from lawsuits costing them millions in refunds to plaintiffs. The bills includeOtay’s sponsored bill, Senate Bill 1072 (Padilla), which would clarify that Proposition 218does not provide for refund remedies to plaintiffs in Proposition 218 lawsuits. Another bill isthe Association of California Water Agencies sponsored, Assembly Bill 2257 (Wilson), would aid public agencies in defending against Proposition 218 lawsuits by requiring litigants to participate and raise specific objections during the public administrative process.In doing so, this proposal intends to bring to light all possible complaints and provide anopportunity to resolve a dispute and avoid litigation altogether. The third bill is Assembly Attachment D 27707746.1 2 Bill 1827 (Papan), which would clarify that water agencies can use existing reasonable and well accepted methods for allocating the incremental costs associated with higher water usage (peaking) demands to impose fees that reflect the costs associated with higher usage demands. 2. Water Bonds and Infrastructure - Three significant water related bonds were proposed inthe legislature last session, however, none passed as the Governor wanted to focus on hisMental Health Bond Proposal (Proposition 1) that was on the primary election ballot. As votes are still being counted, should the Governor’s mental health proposal ultimatelysucceed, water stakeholders will work to push the administration’s attention back to the needfor a water/infrastructure bond. ACWA is advocating for a $7.85 billion bond investmentin water infrastructure for recycled water, groundwater recharge, storage, flood protection,dam safety, conveyance, storage, safe drinking water, water quality, regional watershed resilience, State Water Project improvements, and water conservation. The three bills pending in the legislature: •SB 867 (Allen): Drought and Water Resilience, Wildfire and Forest Resilience, Coastal Resilience, Extreme Heat Mitigation, Biodiversity and Nature-Based ClimateSolutions, Climate Smart Agriculture, and Park Creation and Outdoor Access BondAct of 2023 – Would authorize the issuance of bonds to finance projects for droughtand water resilience, wildfire and forest resilience, coastal resilience, extreme heatmitigation, biodiversity and nature-based climate solutions, climate-smart agriculture, and park creation and outdoor access programs. •AB 1567 (E. Garcia): Safe Drinking Water, Wildfire Prevention, DroughtPreparation, Flood Protection, Extreme Heat Mitigation, and Workforce Development Bond Act of 2023 – Would authorize the issuance of bonds to finance projects for safe drinking water, wildfire prevention, drought preparation, floodprotection, extreme heat mitigation, and workforce development programs. •SB 638 (Eggman): Climate Resiliency and Flood Protection Bond Act of 2024 – Would authorize the issuance of bonds for flood protection and climate resiliencyprojects. We will continue to monitor the progress and feasibility of these bonds as they go through the legislative process. 3.Recycled Water & Potable Reuse – On December 19, 2023, the State Water ResourcesControl Board approved regulations that will allow water systems to develop treatmentprotocols to convert wastewater into high quality drinking water, known as direct potable reuse. The rules would require extensive treatment and monitoring with various steps designed to remove chemicals and pathogens that remain in sewage after it has alreadyundergone traditional primary, secondary and sometimes tertiary treatment. The rules willnot go into effect immediately and must undergo a final review by the Office ofAdministrative Law before being implemented either in the summer or fall. 27707746.1 3 4. Water Use and Efficiency - On August 18, 2023, the State Water Resources Control Boardreleased proposed regulations to establish water-use efficiency goals for urban retail watersuppliers in compliance with the 2018 conservation legislation, Senate Bill 606 (Hertzberg) and Assembly Bill 1668 (Friedman). The regulation would establish unique efficiency goalsfor each supplier based on local conditions, leaving some flexibility to implement locallyappropriate solutions. The rulemaking process is under way, with the first public hearinghaving occurred on October 4, 2023, and comments due on October 17, 2023. The board willconsider adoption of the proposed regulation within one year. The State Water Board expects to release a revised draft of the Regulation sometime in March. An important thing to note is that as required under SB 606, the Legislative Analyst Officewas required to assess implementation of urban water-use efficiency standards and urbanwater supplier reporting by submitting a report by January 10, 2024 to the appropriate policy committees of both houses of the Legislature and to the public. The report was released onJanuary 4, calling the measures costly and difficult to achieve, “in many cases withoutcompelling justification”, and suggested changes to lawmakers to direct state regulators to“make several of the proposed requirements less stringent (such as the residential outdoorstandard), consider how to target state funding to assist lower-income customers, and extend some of the deadlines for suppliers to ensure they can actually achieve the framework’sgoals.” In response, the state water board’s staff had proposed less stringent water-saving standards,reducing the number of suppliers that would be required to achieve large cuts of more than 20%, and extending the timeline for water reductions an additional five years to 2040.Estimates from the earlier proposal would have slashed California’s urban water use 12% by2035. With the revised rules, estimates are that urban water use will be reduced by 7% by2035, and 9% by 2040.The State Water Board will hold a public workshop on the updated proposed regulation on March 20th and will accept written public comment on the proposal until March 27th. The standards for efficient residential indoor water use and water loss have already been setthrough the passage of SB 1157 (Hertzberg) in 2022, which changed the indoor residential water-use standards beginning January 1, 2025, to be beginning January 1, 2025, until January 1, 2030 – 47 gpcd, and beginning January 1, 2030 – 42 gpcd. The law allowsDepartment of Water Resources (DWR), in coordination with the State Water Board, torecommend to the Legislature an alternate date on which the 2030 indoor residential usestandard should take effect if the two agencies determine that the 2030 indoor residential use standard is likely to unduly impact affordability of water and wastewater services. While Otay initially joined ACWA’s “Oppose Unless Amended” coalition on SB 1157, itmoved its position to “Neutral” following amendments adding a quantitative study, addingflexibility to the timeline to achieve the standards, and adopting additional variances. The Department of Water Resources will be conducting studies to quantify the benefits and impacts of these standards that will be due to the Legislature by October 1, 2028. 27707746.1 4 Last year 1572 (Friedman) was signed into law, which prohibits the use of potable water to irrigate nonfunctional turf on commercial, municipal, institutional (except for cemeteries), homeowners' association, common interest development, and community service organization properties. Begins a phase-in of this ban on specified property types beginning January 1, 2027. There are a number of bills introduced on water use objectives which ACWA and Brownstein policy professionals are still analyzing. 5. Water Quality and Contaminants – The State Water Board has the authority in statute toestablish compliance periods for new MCLs. The State Water Board adopted a resolution forthe adoption of drinking water regulations development during their March 7-8, 2023workshop. The Division of Drinking Water has established a proposed prioritized list for regulatory development projects for 2023. Chromium (hexavalent) aka Chrome 6 was first on that list. The proposed regulation is for aMaximum Contaminant Level of 10 parts per billion. Written comments were due on March4 with anticipated adoption by April 2024. ACWA is still in conversations with State Water Board staff and will continue to provide updates. The adopted MCL calendar for 2024 is as follows:a.Chromium (hexavalent)b. Perfluoro-octanoic acid (PFOA) and perfluoro-octane sulfonic acid (PFOS) c. Arsenicd. N-nitroso-dimethylamine (NDMA)e. Styrene f. Cadmium and Mercuryg. Disinfection Byproducts Good news from last year is that a bill of concern for Otay and all other public water agencies, AB 249 by Asm. Holden, which would lower the standards for lead levels at TK-12 school buildings built after 2010 from 15 parts per billion to 5, placing various requirements on water agencies, was vetoed by Governor Newsom due to unfunded cost concerns. Assemblyman Holden introduced AB 1851 this year as a pilot to address the Governor’s veto. The bill would require the Superintendent of Public Instruction to contract with a nonprofit technical assistance organization, for purposes of a pilot program applicable to unspecified school districts, to sample all potable water system outlets on the campuses of the school district for lead contamination, except as provided, and to identify and remediate any potable water system outlet emitting water containing lead levels in excess of 5 parts per billion. The bill would require the nonprofit technical assistance organization, if sampling results show lead levels in excess of 5 parts per billion for any potable water system outlet, to take immediate steps to shut down all potable water system outlets where excess lead levels may exist and to work to ensure that a lead-free source of drinking water is provided for pupils at each potable water system outlet that has been shut down. We will be tracking this bill for any potential amendments that may be of concern to Otay. 27707746.1 5 The final draft of the Cross Connection Control Policy Handbook was approved by the State Water Board on December 19. This handbook will replace portions of Title 17 that address cross connection and backflow regulations. The District will be required to provide a Cross Connection Control Plan to the board by July 1, 2025. District staff provided comments regarding portions of the handbook that will result in increased workload for the District and additional costs to customers. Specifically, that: 1)Residential Fire Sprinklers – As written, the items required to remove the backflowrequirement on residential homes with fire sprinklers would require the District to inspect homes (retroactively) to ensure specific plumbing materials are used and there is a loopedfire system in place. District staff believes most homes will not be compliant andtherefore it will require them to install backflow devices. 3,200 homes are estimated to beaffected by this.2)Hazard Assessment on all sites – As written, the District would have to perform hazard assessments on all its service connections as well as resurvey each time a commercial ormulti-residential property changes ownership. Since the District requires the highest formof backflow protection for all commercial, multi-residential, and residential propertieswith wells on site, site surveys were conducted only as needed. Staff will now have toperform assessments on more than 50,000 services and create a process to resurvey commercial and multi-residential properties when ownership changes. 6.Advanced Clean Fleets Implementation – In accordance with Executive Order N-79-20,which recognizes the need for the state to transition to carbon neutrality by setting a course toend sales of internal combustion passenger vehicles by 2035, the California Air Resources Board (CARB) is faced with the task of transitioning high priority private fleets and publicfleets to zero-emission vehicles to meet the state’s goals set forth by the order, as outlined inthe Advanced Clean Fleets Proposed Rulemaking. Otay Water District advocated for an exemption for emergency response vehicles under the Advanced Clean Fleets (ACF) Proposed Rulemaking for public fleets to ensure that theDistrict’s first responders in the field responding to water and wastewater utility emergenciesin specialized vehicles have the resources available to them to ensure that response is notdelayed. Two letters were submitted by Otay in 2022 to CARB during the public comment period that year. CARB released its final draft rule on March 23, 2023 with a 15-day public comment period.The final day to submit any comments to CARB on the ACF final draft rule was on April 7,2023. Following this period, CARB adopted its final ACF rule during its April 27 workshop. Otay submitted a letter and Brownstein advisors provided public comment. The Office of Administrative law approved the rule on September 29, and it was official as of October 1and remains in effect. Charles Mederos from the District is in constant communication withACWA on opportunities to participate in the Air Resources Board’s advisory committees onthe implementation of the regulation. AB 1594 (E. Garcia) was introduced and signed into law last year to provide additionalflexibility not present in the adopted regulations. Otay, with the assistance of Brownsteinpolicy professionals, submitted letters of support and a request for signature. CARB is 27707746.1 6 working out how to abide by this law through the recently adopted regulations and is planning to hold a workshop on March 25, 2024 to discuss implementation of AB 1594. 7.Drought and Extreme Weather Response – In 2021, as drought conditions and record-breaking temperatures persisted throughout the state, Governor Newsom signed ExecutiveOrder N-10-21, which calls on Californians to voluntarily reduce water use by 15%compared to 2020 levels. Due to the state having experienced significant rainfall andflooding as a result of the atmospheric rivers that hit California in late December and through April of last year, the Governor rescinded his executive orders on conservation. Following the Governor’s executive order in 2021, the State Water Board implementedregulations in January 2022 that prohibited wasteful water use practices statewide. Theseregulations were readopted in December 2022 and remained in effect until December 21, 2023 when they expired. Following the Governor's direction in 2022, the State Water Board adopted an emergencyregulation banning the irrigation of decorative grass, with limited exceptions, which tookeffect on June 10, 2022. The emergency regulation was in effect until June 10, 2023. Drought response and extreme weather remains a top concern for the Newsomadministration. In August 2022, the Governor announced a new Water Supply Strategy forCalifornia to help make up for the water supplies the state might lose over the next twodecades. Due to climate change, hotter and drier weather conditions could potentially reduce California’s water supply by up to 10% by 2040. The water supply strategy prioritizesactions to capture, recycle, desalt, and conserve more water. More information on theGovernor’s strategy will be released at a later date. In mid-October 2023, the Newsomadministration released its One year Progress Report highlighting its actions taken over the last year in pursuit of the goals stated in his Water Supply Strategy announced last year (groundwater recharge permitting, rehabilitating dams, expanding desalination, DirectPotable Reuse Regulations, etc.). Regarding flooding, Governor Gavin Newsom announced on February 19 of this year that the White House has approved California’s request for a Presidential Major Disaster Declaration for individuals and families impacted by the storms between January 21 and 23,2024 in San Diego County. The declaration unlocks federal funding to supplement state andlocal recovery efforts in the areas affected by the storm. Residents and business owners whosustained losses in the designated areas can begin applying for assistance at: www.DisasterAssistance.gov. 8.State Budget/Infrastructure Funding – Last year’s adopted budget faced a close to $32billion budget deficit, the budget included funding for a variety of water issues. According tothe State Analyst Office, this year’s budget deficit is $58 billion based on revenue projections at the time of the Governor’s Budget proposal in January. Recent revenue numbers bring that estimate closer to $73 billion. Such a significant budget problem will make any additionalspending difficult for when this year’s budget is adopted. 27707746.1 7 Newsom’s proposed budget would reduce funding for watershed climate resilience, recycled water, flood protection, PFAS treatment, and Forecast-Informed Reservoir Operations. Specifically, the governor’s budget proposes funding and reductions in the following areas: • Watershed Climate Resilience — A reversion of $88.4 million General Fund and a reduction of $350 million over the next two years for various watershed climate resilience programs within the Department of Water Resources and the Wildlife Conservation Board. The budget maintains $56 million previously allocated to these programs. • Recycled Water — A reversion of $174.4 million in General Fund and a delay of $100 million until 2025-’26 for water recycling and groundwater cleanup. The budget maintains $348 million previously allocated to this program. • PFAS — A reversion of $71.6 million General Fund and reduction of $30 million in 2024 and 2025 for per-and polyfluoroalkyl (PFAS) support. The budget maintains $53 million previously allocated to this program. • Dam Safety — A reversion of $50 million General Fund for dam safety investments. The budget maintains $50 million previously allocated to this program. • Forecast-Informed Reservoir Operations (FIRO) — A reduction of $6.75 million General Fund ongoing for Forecast-Informed Reservoir Operations for runoff forecasting. The budget maintains $10 million ongoing in baseline support for the program. The budget also proposes including new water spending in the following areas: • Flood Safety — $93.9 million to support critical flood safety efforts. • Salton Sea — $65.2 million for implementation of the Salton Sea Management Program, for restoration projects at the Salton Sea to suppress dust and create wildlife habitat. Negotiations are ongoing and a revised budget will be released in May 2024, and the Legislature will have until June 15 to pass a final budget. 9. State Water Project (SWP)/Delta Conveyance – Each year DWR makes an initial SWP allocation on December 1. Allocations are updated as snowpack and runoff information are assessed, with a final allocation typically determined in May or June. DWR announced its initial SWP allocation of 10% in 2024 on December 1, 2023. On February 21, it updated the allocation to 15%. The latest allocation does not include the results of any of the storms that hit California in early February until today. The SWP will review conditions and may revise the forecasted allocation in mid-March. It is important to note that last year’s allocations eventually reached 100% for the first time since 2006. On the proposed Delta Conveyance project, 2022 marked the release and public review of the Draft Environmental Impact Report (EIR) evaluating the proposed Delta Conveyance Project under the California Environmental Quality Act. Building on that progress, on December 8, 2023, DWR released the Final EIR and certified it a few weeks later on December 21. Following the certification, various environmental organizations filed suits in late January 2024. 27707746.1 8 Regarding the Sites Reservoir, in early November, Governor Gavin Newsom announced he had certified the project under SB 149 (2023), which allows the Governor to certify qualifying infrastructure projects for judicial streamlining under the California Environmental Quality Act (CEQA). Courts must decide CEQA challenges to certified projects within 270 days to the extent feasible. Then in mid-November, the Bureau of Reclamation and Sites Project Authority certified its final EIR and was approved to move forward. Project coordinators say construction will begin in 2024, with completion expected in 2030, however, conservation and environmental justice groups filed a lawsuit on December 20. 10. Water Rights Modernization – Due to the drought and the federal negotiations on the Colorado River, water rights rose to the top of the Legislature’s agenda last year. Several bills were introduced year that collectively present a fundamental change in California’s water rights system. These bills would hand the State Water Board nearly unfettered authority to adopt sweeping curtailment regulations, issue interim relief orders without due process, and drag diverters before the State Water Board to defend their rights. Two bills were signed into law, SB 389 & AB 799, but two bills remain that are two-year bills that can move again this summer as they are already in the second half, AB 460 by Assemblymember Bauer-Kahan and AB 1337 by Assemblymember Wicks. ACWA has spent months in 2022 and 2023 preparing for a water rights debate and had intended to sponsor its own water rights legislation as an alternative to avoid more drastic legislation during both sessions. However, no internal agreement amongst the ACWA membership was attained during the state legislative committee meetings. ACWA-sponsored legislation on water rights has been shelved indefinitely and instead, ACWA will continue to lead the coalition in opposition to the water rights bills remaining and any new bills introduced this year. Otay Water District Anticipated 10 Legislative & Regulatory Priorities for 2024 Presented by: Baltazar Cornejo Policy Advisor Keshav Kumar Law Clerk March 19, 2024 Attachment E Anticipated 10 Legislative & Regulatory Priorities 2024 2 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | Legislative Update •Legislature reconvened on January 3, 2024. •In 2024, a total 2,124 bills introduced were introduced by February 16th deadline for bill introductions. •Key Legislative Deadlines: —January 10 – Governor’s Budget Proposal —February 16 – Bill Introduction deadline —May 15 – May Revision of the January Budget (“May Revise”) —May 24 – Last day for each house pass bills introduced in that house. (“House of Origin Deadline”). —June 15 – Budget must be passed by midnight —August 31– Deadline to pass bills out of Legislature. (“Final Recess upon Adjournment of Session”) —September 30 – Last day for Governor to sign or veto bills passed on or before September 1 3 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 1. Affordability & Proposition 218 •Low Income Household Water Assistance Program (LIHWAP) —In 2020, the federal government funded LIHWAP to provide financial assistance to low-income Californians with residential water utility costs and debt repayment. —California has been allocated $116 million in one-time funding to provide LIHWAP assistance. —Administering Agency – Department of Community Services and Development (CSD). •In response to low LIHWAP participation and grant expenditure, CSD expanded eligibility to include current bills to maximize grant expenditures. •LIHWAP benefit payments began to be issued to households in June 2022 and all funds must be expended by March 31, 2024 due to a recent extension. •Federal Legislation —United States Senator Alex Padilla has introduced S. 3830, a LIHWAP bill that, if passed, would establish a permanent, nationwide water assistance program that is modeled after the current program, due to expire in March 2024. —The bill would authorize grants to States, Territories, and Tribes to assist low-income households in paying arrearages and other rates charged to such households for drinking water or wastewater services; provide technical assistance to rural, Tribal, and underserved owners or operators of public water systems or treatment works; align income eligibility with the Low Income Household Energy Assistance Program (LIHEAP), Temporary Assistance for Needy Families (TANF), Supplemental Nutrition Assistance Program (SNAP), Supplemental Security Income, and means-tested veterans’ programs; and transfer authority of the program from HHS to the EPA upon completion of the Rural and Low-Income Water Assistance Pilot Program authorized in the Bipartisan Infrastructure Law. 4 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 1. Affordability & Proposition 218 Cont. •Three Bills introduced this session to address issues with Proposition 218 to further protect water agencies from lawsuits costing them millions in refunds to plaintiffs. —Otay WD Sponsored Senate Bill 1072 (Padilla), which would clarify that Proposition 218 does not provide for refund remedies to plaintiffs in Proposition 218 lawsuits. —Association of California Water Agencies sponsored, Assembly Bill 2257 (Wilson), would aid public agencies in defending against Proposition 218 lawsuits by requiring litigants to participate and raise specific objections during the public administrative process. In doing so, this proposal intends to bring to light all possible complaints and provide an opportunity to resolve a dispute and avoid litigation altogether. —Irvine Ranch WD Sponsored Assembly Bill 1827 (Papan), which would clarify that water agencies can use existing reasonable and well accepted methods for allocating the incremental costs associated with higher water usage (peaking) demands to impose fees that reflect the costs associated with higher usage demands. 5 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 2. Water Bonds & Infrastructure ACWA is advocating for a $7.85 billion bond investment in water infrastructure for recycled water, groundwater recharge, storage, flood protection, dam safety, conveyance, storage, safe drinking water, water quality, regional watershed resilience, State Water Project improvements, and water conservation. While three bonds were introduced last year, all bond legislation were made 2- year bills as the Governor wanted to focus on his Mental Health Bond Proposal voted on in this recent primary election. SB 867 (Allen): Drought and Water Resilience, Wildfire and Forest Resilience, Coastal Resilience, Extreme Heat Mitigation, Biodiversity and Nature-Based Climate Solutions, Climate Smart Agriculture, and Park Creation and Outdoor Access Bond Act of 2023. •Would authorize the issuance of bonds in an unspecified amount pursuant to the State General Obligation Bond Law to finance projects for drought and water resilience, wildfire and forest resilience, coastal resilience, extreme heat mitigation, biodiversity and nature-based climate solutions, climate smart agriculture, and park creation and outdoor access programs. AB 1567 (E. Garcia): Safe Drinking Water, Wildfire Prevention, Drought Preparation, Flood Protection, Extreme Heat Mitigation, and Workforce Development Bond Act of 2023. Would authorize the issuance of bonds in the amount of $15,105,000,000 pursuant to the State General Obligation Bond Law to finance projects for safe drinking water, wildfire prevention, drought preparation, flood protection, extreme heat mitigation, and workforce development programs. SB 638 (Eggman):Climate Resiliency and Flood Protection Bond Act of 2024 . Would authorize the issuance of bonds in the amount of $4,500,000,000, pursuant to the State General Obligation Bond Law, for flood protection and climate resiliency projects. 6 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 3. Recycled Water and Potable Reuse •On December 19, 2023, the State Water Resources Control Board approved regulations that will allow water systems to develop treatment protocols to convert wastewater into high quality drinking water, known as direct potable reuse. •The rules would require extensive treatment and monitoring with various steps designed to remove chemicals and pathogens that remain in sewage after it has already undergone traditional primary, secondary and sometimes tertiary treatment. The rules will not go into effect immediately and must undergo a final review by the Office of Administrative Law before being implemented either in the summer or fall. 7 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 4. Water Use and Efficiency •Making Conservation a Way of Life Regulations —On August 18th, 2023, the State Water Resources Control Board released proposed regulations to establish water-use efficiency goals for urban retail water suppliers in compliance with the 2018 conservation legislation, Senate Bill 606 (Hertzberg) and Assembly Bill 1668 (Friedman). —The regulation would establish unique efficiency goals for each supplier based on local conditions, leaving some flexibility to implement locally appropriate solutions. The rulemaking process is under way, with the first public hearing having occurred on October 4, 2023, and comments due on October 17, 2023. The board will consider adoption of the proposed regulation within one year. The State Water Board expects to release a revised draft of the Regulation sometime in March. —As required under SB 606, the Legislative Analyst Office was required to assess implementation of urban water- use efficiency standards and urban water supplier reporting by submitting a report by January 10, 2024 to the appropriate policy committees of both houses of the Legislature and to the public. The report was released on January 4th, calling the measures costly and difficult to achieve, “in many cases without compelling justification”, and suggested changes to lawmakers to direct state regulators to “make several of the proposed requirements less stringent (such as the residential outdoor standard), consider how to target state funding to assist lower income customers, and extend some of the deadlines for suppliers to ensure they can actually achieve the framework’s goals.” —In response, the state water board’s staff had proposed less stringent water-saving standards, reducing the number of suppliers that would be required to achieve large cuts of more than 20%, and extending the timeline for water reductions an additional 5 years to 2040.The State Water Board will hold a public workshop on the updated proposed regulation on March 20th and will accept written public comment on the proposal until March 27th. There are a number of bills introduced on water use objectives which ACWA and Brownstein policy professionals are still analyzing. 8 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 5. Water Quality and Contaminants •Maximum Contaminant Level Regulations —The State Water Board has the authority in statute to establish compliance periods for new MCLs. The State Water Board adopted a resolution for the adoption of drinking water regulations development during their March 7-8, 2023 workshop. The Division of Drinking Water (DDW) has established a proposed prioritized list for regulatory development projects for 2023. —Chromium (hexavalent) Chrome 6 was first on that list. The proposed regulation is for a MCL of 10 parts per billion. Written comments were due on March 4th with anticipated adoption by April 2024. ACWA is in conversations with SWRCB State Water Board staff and will continue to provide updates. •The adopted MCL calendar for 2024 is as follows: —a. Chromium (hexavalent) —b. Perfluoro-octanoic acid (PFOA) and perfluoro-octane sulfonic acid (PFOS) —c. Arsenic —d. N-nitroso-dimethylamine (NDMA) —e. Styrene f. Cadmium and Mercury —g. Disinfection Byproducts •Lead Testing Legislation: •Assemblyman Holden introduced AB 1851 this year as a pilot to address the Governor’s veto of his AB 249 from last year. The bill would require the Superintendent of Public Instruction to contract with a nonprofit technical assistance organization, for purposes of a pilot program applicable to unspecified school districts, to sample all potable water system outlets on the campuses of the school district for lead contamination, except as provided, and to identify and remediate any potable water system outlet emitting water containing lead levels in excess of 5 parts per billion. The bill would require the nonprofit technical assistance organization, if sampling results show lead levels in excess of 5 parts per billion for any potable water system outlet, to take immediate steps to shut down all potable water system outlets where excess lead levels may exist. 9 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 5. Water Quality & Contaminants Cont. •Cross Connection Control Policy Handbook Final draft of the Cross Connection Control Policy Handbook was approved by the State Water Board on December 19. This handbook will replace portions of Title 17 that address cross connection and backflow regulations. The District will be required to provide a Cross Connection Control Plan to the board by July 1, 2025. District staff provided comments regarding portions of the handbook that will result in increased workload for the District and additional costs to customers. Specifically, that: 1)Residential Fire Sprinklers – The items required to remove the backflow requirement on residential homes with fire sprinklers would require the District to inspect homes (retroactively) to ensure specific plumbing materials are used and there is a looped fire system in place. District staff believes most homes will not be compliant and therefore it will require them to install backflow devices. About 3,200 homes are estimated to be affected by this. 2)Hazard Assessment on all sites – The District would have to perform hazard assessments on all its service connections as well as resurvey each time a commercial or multi-residential property changes ownership. Since the District requires the highest form of backflow protection for all commercial, multi-residential, and residential properties with wells on site, site surveys were done only as needed. District staff will now have to perform assessments on more than 50,000 services and create a process to resurvey commercial and multi- residential properties when ownership changes. 10 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 6. Advanced Clean Fleets Rulemaking Implementation •Executive Order N-79-20 accelerates the state’s transition to carbon neutrality by setting a course to end sales of internal combustion passenger vehicles by 2035. •The Advanced Clean Fleets proposed rulemaking for Public Fleets would require. —100% zero-emission drayage trucks by 2035. —100% zero-emission off-road vehicles and equipment by 2035, where feasible. —100% zero-emission medium and heavy-duty vehicles by 2045, where feasible. •Otay Water District submitted comments to CARB and met with CARB staff, seeking an exemption for emergency response vehicles. •CARB adopted the rule on April 27th workshop after 15 days of public comment. Otay WD submitted comments and Brownstein policy advisor provided public comment. The Office of Administrative law approved the rule on September 29th and it is official as of October 1st. •AB 1594 (E. Garcia) was signed by the Governor to provide flexibility not present in the adopted regulations. (Otay submitted letters of support & a request for signature). —Requires any state regulation that seeks to require the procurement of medium- and heavy-duty ZEVs to authorize public agency utilities to purchase replacements for traditional utility-specialized vehicles that are at the end of life, as determined by CARB in consultation with public utility agencies, when needed to maintain reliable service and respond to major foreseeable events, including severe weather, wildfires, natural disasters, and physical attacks, without regard to the model year of the vehicle being replaced. —Authorizes a public agency utility, for the purposes of determining the daily usage of a medium- or heavy- duty vehicle, to provide comprehensive usage data for a class of vehicles that does not exclusively rely on the lowest mileage reading and does not exclude the highest usage days. —Defines "public agency utility" as a local publicly owned electric utility, a community water system, a water district, and a wastewater treatment provider. 11 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 7. Drought & Extreme Weather Response •California experienced significant rainfall and flooding during the series of atmospheric rivers that hit the state in late December through late March. •On March 24th the Governor issued an executive order amending the Emergency Drought Proclamation and previous executive orders on conservation. —Ended the voluntary 15% water conservation target, —Ended requirement that local water agencies implement level 2 of their drought contingency plans, —Retained a state of emergency for all 58 counties to allow for drought response and recovery efforts, —Retained the non-functional turf irrigation ban in commercial, industrial, and institutional areas, including HOA common, set to expire in June 2024, unless the Board takes further action. —Emergency Regulation to Prohibit Wasteful Water Uses (refilling fountains without recirculating pumps, overwatering landscapes, watering grass within 48 hours of rainfall, etc.) is set to expire in December 2023, unless the Board takes further action. •Governor Newsom’s California’s Water Supply Strategy —Water Supply Strategy announced August 2022 due to hotter and drier weather conditions (spurred by climate change) potentially reducing California’s water supply by up to 10% by the year 2040. —To help make up for the water supplies California could lose over the next two decades, the strategy prioritizes actions to capture, recycle, de-salt and conserve more water. •Create storage space for up to 4 million acre-feet of water. •Recycle and reuse at least 800,000 acre-feet of water per year by 2030. •Free up 500,000 acre-feet of water for new purposes each year. •Make new water available for use by capturing stormwater and desalinating ocean water and salty water in groundwater basins. —One year Progress Report released in October highlights actions taken by the administration over the last year in pursuit of these goals. (Groundwater recharge permitting, rehabilitating dams, expanding desal, Direct Potable Reuse Regulations, etc). 12 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 8. State Budget Funding •Last year’s adopted budget faced a close to $32 billion budget deficit and included funding for a variety of water issues. According to the State Analyst Office, this year’s budget deficit is $58 billion based on revenue projections at the time of the Governor’s Budget proposal in January. Recent revenue numbers bring that estimate closer to $73 billion. Such a significant budget problem will make any additional spending difficult for when this year’s budget is adopted. •Newsom’s proposed budget would reduce funding for watershed climate resilience, recycled water, flood protection, PFAS treatment, and Forecast-Informed Reservoir Operations. •Specifically, the governor’s budget proposes funding and reductions in the following areas: —Watershed Climate Resilience — A reversion of $88.4 million General Fund and a reduction of $350 million over the next two years for various watershed climate resilience programs within the Department of Water Resources and the Wildlife Conservation Board. The budget maintains $56 million previously allocated to these programs. —Recycled Water — A reversion of $174.4 million in General Fund and a delay of $100 million until 2025-’26 for water recycling and groundwater cleanup. The budget maintains $348 million previously allocated to this program. —PFAS — A reversion of $71.6 million General Fund and reduction of $30 million in 2024-’and 2025 for per-and polyfluoroalkyl (PFAS) support. The budget maintains $53 million previously allocated to this program. —Dam Safety — A reversion of $50 million General Fund for dam safety investments. The budget maintains $50 million previously allocated to this program. —Forecast-Informed Reservoir Operations (FIRO) — A reduction of $6.75 million General Fund ongoing for Forecast-Informed Reservoir Operations for runoff forecasting. The budget maintains $10 million ongoing in baseline support for the program. 13 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 8. State Budget Funding Cont. •The budget also proposes including new water spending in the following areas: —Flood Safety — $93.9 million to support critical flood safety efforts. —Salton Sea — $65.2 million for implementation of the Salton Sea Management Program, for restoration projects at the Salton Sea to suppress dust and create wildlife habitat. Negotiations are ongoing and a revised budget will be released in May 2024, and the Legislature will have until June 15 to pass a final budget. 14 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 9. State Water Project/Delta Conveyance •State Water Project (SWP) —Each year DWR makes an initial SWP allocation on December 1. Allocations are updated as snowpack and runoff information are assessed, with a final allocation typically determined in May or June. DWR announced its initial SWP allocation of 10% for 2024 on December 1st, 2023. On February 21, it updated the allocation to 15%. The latest allocation does not include the results of any of the storms that hit California in early February until today. The SWP will review conditions and may revise the forecasted allocation in mid-March. It is important to note that last year’s allocations eventually reached 100% for the first time since 2006. •Delta Conveyance Project —2022 marked the release and public review of the Draft Environmental Impact Report (EIR) evaluating the proposed Delta Conveyance Project under the California Environmental Quality Act. Building on that progress, on December 8, 2023, DWR released the Final Environmental Impact Report (EIR) and certified it a few weeks later on December 21st. Following the certification, various environmental organizations filed suits in late January 2024. •Sites Reservoir Project —Regarding the Sites Reservoir, in early November, Governor Gavin Newsom announced he had certified the project under SB 149 (2023), which allows the Governor to certify qualifying infrastructure projects for judicial streamlining under the California Environmental Quality Act (CEQA). Courts must decide CEQA challenges to certified projects within 270 days to the extent feasible. —Then in mid-November, the Bureau of Reclamation and Sites Project Authority certified its final EIR and was approved to move forward. Project coordinators say construction will begin in 2024, with completion expected in 2030, however, conservation and environmental justice groups filed a lawsuit on December 20th. 15 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 10. Water Rights Modernization •Due to the ongoing drought and greater federal level discussions on the Colorado River water rights, water rights is poised to rise to the top of the Legislature’s agenda last year. Several bills were introduced last year that collectively present a fundamental change in California’s water rights system and a coordinated effort is underway to see that this year ends with a foundational change to how the water rights system is implemented and enforced. —AB 1337 (Wicks) gives the State Water Board authority to adopt sweeping curtailment regulations for water conservation purposes to prevent the waste, unreasonable use, or unreasonable method of diversion of water. —AB 460 (Bauer-Kahan) would authorize the State Water Board to issue an interim relief order on water rights. —Other spot bills on water rights have been introduced with no indication on what they will do. —AB 676 (Bennett) would declare ‘domestic purposes’ as the highest use of water, providing specific examples of ‘domestic purposes’ and explicitly states that all water rights remain subject to the reasonable use and public trust doctrines. •ACWA considered proposing its own water rights legislation as an alternative to the above- described legislation, however no agreement was reached by its membership. Instead ACWA led a coalition in opposition of the above-described legislation, which was successful. While some of these bills were signed into law, SB 389 & AB 799, but two bills remain that are two-year bills that can move again this summer as they are already in the second half, AB 460 and AB 1337. AB 676 was vetoed by the Governor. 16 Questions? Baltazar Cornejo bcornejo@bhfs.com (916) 594-9705 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: April 3, 2024 PROJECT: Various DIV. NO. ALL SUBMITTED BY: Michael Kerr, Information Technology Manager APPROVED BY: Adolfo Segura, Chief, Administrative Services Jose Martinez, General Manager SUBJECT: FY24 MID-YEAR REPORT OF THE DISTRICT’S FY23-26 STRATEGIC PLAN GENERAL MANAGER’S RECOMMENDATION: No recommendation. This is an informational item only. COMMITTEE ACTION: Please see “Attachment A”. PURPOSE: To provide a mid-year report of the District’s FY23-26 Strategic Plan for FY24. ANALYSIS: Summary The current Otay Water District Strategic Plan is a four-year plan ranging from the start of FY23 through the end of FY26. This report details the mid-year results for the second year of the organization’s four-year program. Objectives – Target 90% Strategic Plan objectives are designed to ensure the District’s execution of mission-derived strategies and the implementation of changes necessary to guide the agency, addressing emerging challenges and fostering a positive adaptation to change. FY24 mid-year results are at 90%, with 27 of 30 active items completed or on schedule; one (1) is behind schedule, AGENDA ITEM 9a 2 and two (2) are on hold. Objective Behind Schedule (1): FINANCIAL Strategy: Invest in technology to enhance customer engagement and satisfaction. Objective: Deploy Advanced Metering Infrastructure (AMI) technology in service areas to improve District operations. The District’s contractor, Master Meter, began the process of converting automated meter reading (AMR) meters to advanced meter infrastructure (AMI) meters in September 2023. However, progress has been slower than anticipated, with completion now projected for May or June 2024. As the transition progresses, the project will initiate customer engagement efforts accordingly. Objectives On Hold (2): FINANCIAL Strategy: Maintain a long-range financing plan that sets forth the long- term funding needs of the District. Objective: Evaluate the District’s cash reserve policies to consider optimal uses and levels of reserves, to ensure financial resiliency. To date, the District has encountered some challenges in identifying a consultant capable of providing the required services or an agency that has recently conducted a similar study. In the interim, the 05 1015 2025 3035 4045 27 1 2 5 On Schedule/Completed Behind On Hold Not Started 27 of 30 Objectives are Completed or On Schedule (90%) 3 District sought guidance from its financial advisor regarding its current reserve policy and debt coverage practices in relation to its bond rating. Additionally, staff initiated a study to benchmark the District’s reserve policy against those of other local agencies. However, due to turnover and prioritization of the ERP implementation, progress on this initiative has been put on hold. Staff intends to resume and complete the comparison when the department returns to full staffing levels. INTERNAL BUSINESS PROCESS Strategy #1: Leverage the use of renewable and clean energy resources and reduce the use of hazardous chemicals. Objective: Reduce the District’s chemical footprint by substituting hazardous chemicals for similar, less hazardous chemicals. The Ralph W. Chapman Water Recycling Facility Disinfection System Improvements project was recently approved and awarded in the second quarter, with construction planning meetings scheduled for the third quarter. However, given the expected delays in equipment manufacturing and the projected construction start date in FY25, the objective has been placed on hold. Key Performance Indicators (KPI’s) – Target 75% KPI’s are designed to track the District’s day-to-day performance. These indicators measure the effectiveness and efficiency of essential operational services. The District’s overall KPI goal of 75% is considered “on target”. For FY24, mid-year results are above target at 87%, with 20 of 23 items achieving the desired level or better. 20 of 23 Key Performance Indicators are On Target (87%) 0510152025303540 20 3 On Target Not on Target 4 KPI’s Not on Target (3): CIP Project Expenditures vs. Budget Target: 95% of budget annually. Capital Improvement Project (CIP) expenditures stand at 18%, falling short of the mid-year goal of 36%. This shortfall is attributed to delays in material acquisition and staff turnover. Hydrant Maintenance Program Target: 1220 fire hydrants maintained annually. Utility Maintenance Staff serviced 560 fire hydrants, slightly below the mid-year target of 610. Their efforts were redirected toward assisting in Capital Improvement Projects (CIP) and simulated shutdowns, contributing to this variance. Staff will prioritize ensuring the target is achieved before the end of the fiscal year. Employee Turnover Rate Target: Less than 5% turnover annually. Five (5) voluntary terminations occurred in the first and second quarters, resulting in a turnover rate of 3.65% for mid-year results. KPI’s are determined on established AWWA performance benchmarks, water agency standards, and historical trends. Of the total measures outlined in the Strategic Plan, 10 are reported annually to include: • Water Rate Ranking • Sewer Rate Ranking • Water Debt Coverage • Sewer Debt Coverage • Reserve Level • Accounts Per Full-Time Employee (FTE) • Business Recovery Exercises • Vulnerability Assessments • Potable Tank Inspection and Cleaning • Injury Incident Rate One (1) measure is reported biennially to triennially: • Customer Opinion Survey 5 Next Steps Staff will continue to focus on the plan’s objectives, key performance indicators, and emerging trends. Committee Reports – Slideshow The Strategic Plan mid-year results are presented to both the Conservation, Public Relations, Legal & Legislative Committee, and the Finance and Administration Committee (see “Attachment B”). The Strategic Plan is also available on the District’s website. FISCAL IMPACT: Joe Beachem, Chief Financial Officer Informational item only; no fiscal impact. STRATEGIC GOAL: Strategic Plan and Performance Measure reporting is a critical element in providing performance reporting to the Board and staff. LEGAL IMPACT: None. ATTACHMENTS: Attachment A – Committee Action Report Attachment B – PowerPoint Presentation 6 ATTACHMENT A SUBJECT/PROJECT: FY24 MID-YEAR REPORT OF THE DISTRICT’S FY23-26 STRATEGIC PLAN COMMITTEE ACTION: The Conservation, Public Relations, Legal & Legislative Committee, and the Finance & Administration Committee met on March 19 and 20, 2024, respectively, and the following comments were made: • Staff presented a PowerPoint Presentation of the Fiscal Year 2024 Mid-Year Report. • The Committee inquired about the reasons for the System Valve Exercising Program KPI not being on target. Staff responded that these reasons were highlighted on page 4 of the staff report. Staff also indicated that targets had been increased in this new iteration of the strategic plan. Furthermore, staff noted that the trend was similar last year, but by the end of the fiscal year targets were met. • The Committee discussed the System Valve Exercising Program KPI and raised questions regarding the availability of materials in case of a break. Staff responded by explaining that the district maintains replacement (or standard) valves that can be ordered and delivered promptly. Staff also mentioned having redundant equipment, primarily to avoid exercising by hand (to reduce employee injury) and to ensure comprehensive data capture. Additionally, staff informed the Committee that a new valve truck would be acquired next month. • There was a discussion regarding the factors affecting the resources available to assess the district’s reserve policy. These include a staffing shortage and the earlier-than-expected implementation of the ERP process. Staff emphasized that there are no issues with our current reserve policy. The steps outlined by staff to achieve the 7 objective include comparing our reserve policy to those of neighboring agencies, ensuring the district is maintaining the standards expected for an acceptable S&P rating, and having an independent review of the policy. • Staff clarified that while terminations generally encompass retirements, retirements are excluded from the Voluntary Turnover KPI. The Committee expressed gratitude to staff for the clarification and further queried whether this aspect was within the district’s sphere of control. In response, staff highlighted that employee departures can be attributed to various reasons, including promotional opportunities and relocation. Staff also indicated that in response to a prior inquiry from the Committee regarding the district's internal efforts to foster culture and innovative improvements, an Innovation Committee was formed and there is a related objective. Primarily comprised of new hires, this committee actively seeks feedback on positives, work-related challenges, processes, and potential recognition programs aimed at enhancing the district's cultural environment. Staff emphasized that while the district cannot entirely control employee turnover, internal initiatives are underway to drive improvement. • The Committee inquired if there was any information that indicates that the district’s water sales are on target. Staff stated that the water sales information is reported monthly in the General Manager’s report, specifically in two areas: 1) two graphs that depict the current potable and recycled water purchases by volume in comparison to the budget; and 2) in the monthly financial comparative that indicates the water sales in dollars as well as depicts the overall revenue picture, which shows if the district is on target or not for the year in comparison the budget. • Due to General Counsel’s pre-planned absence from the Committee meeting, his associate Jack Sleeth was present via telephone. At the request of the Committee, this was noted and acknowledged. Upon completion of the discussion, the Committee supported staffs’ recommendation and presentation to the full board as an informational item. OTAY WATER DISTRICT STRATEGIC PLAN FY 2024 Mid-Year Report 2023 2026 ATTACHMENT B BALANCED SCORECARD 2 Focuses on the financial performance of the District FINANCIAL Focuses on the District’s culture and development of staff to ensure there is a productive and skilled workforce in place LEARNING AND GROWTH Focuses on customer service levels, satisfaction, brand, and confidence CUSTOMER Focuses on business processes designed to deliver and improve customer objectives and services INTERNAL BUSINESS PROCESS 90% Total 35 ON SCHEDULE/ COMPLETED BEHIND SCHEDULE ON HOLD OBJECTIVES TR E N D S MID-YEAR FY 2024 27 Objectives 27/30 = 90% Overall Target 94% 88% 93%95%94% 82%86% 98%100% 50% 60% 70% 80% 90% 100% FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Year-End Target 3 Active/Completed 30 Not Started 5 1 Objective 1/30 = 3% 2 Objectives 2/30 = 7% CUSTOMER Enhance and build public awareness of the District’s priorities, initiatives, programs, and services Collect and analyze customer feedback on District operations, projects, programs, service experience, and expectations Advance the District's web and social media presence Enhance internal communications, tools, and technology to disseminate information to District staff effectively Enhance education, outreach, and communication tools to the public on the understanding of water supply constraints and rates and how they affect/support a reliable water supply 4 Completed On Schedule Left to right: Alexis Salcedo and Leo Lopez Utility Maintenance staffOutreach Event: Chula Vista Starlight Parade (December 3, 2023) FINANCIAL Maintain a long-range financing plan that sets forth the long-term funding needs of the District Evaluate grant funding opportunities Evaluate banking functions for lower cost and process efficiencies Evaluate the District’s cash reserve policies to consider optimal uses and levels of reserves, to ensure financial resiliency Conduct an evaluation of a health savings investment account program for an optional post-employment benefit Conduct a compensation study to evaluate labor industry conditions and the District’s competitiveness Invest in technology infrastructure to enhance customer engagement and satisfaction Deploy Advanced Metering Infrastructure (AMI) technology in service areas to improve the District operations Evaluate Interactive Voice Response (IVR)/Online customer portal for water use management and assistance 5 Completed On Schedule Behind Schedule On Hold Hannah Tamjidi Finance Department Assistant INTERNAL BUSINESS PROCESS Leverage the use of renewable and clean energy resources and reduce the use of hazardous chemicals Evaluate and implement energy-efficient systems Evaluate and implement alternative energy opportunities Advance Clean Fleet Regulations District Implementation Program of Zero or near Zero Emissions Vehicles Reduce the District’s chemical footprint by substituting hazardous chemicals for similar, less hazardous chemicals Implement technologies to improve response time, security, and operational effectiveness Conversion of the District’s enterprise Geographic Information System (GIS/Esri) from a Geometric Network to a Utility Network Model Conduct needs assessment/replacement of District's financial management system Maintain and regularly evaluate internal financial controls Leverage Cityworks to further develop job task process standardization and work order cost modeling 6 Completed On Schedule On Hold Not Started Abraham Yanez Equipment Mechanic II INTERNAL BUSINESS PROCESS Develop appropriate water resource mix to meet the water reliability needs of the community Use the Water Facilities Water Management Plan/Urban Water Management Plan to analyze future needs and prescribe approaches to meeting future requirements Evaluate City of San Diego’s recycled water purchase Develop the District’s long-term water supply strategies and planning efforts with regional partnerships Respond to anticipated water shortages through rate structure modification, conservation assistance, and outreach Monitor and modify the Water Shortage Contingency Plan, as needed Identify, evaluate, and implement new opportunities for recycled water, including potential for potable reuse 7 Completed On Schedule Javier Vasquez Meter Maintenance Worker II INTERNAL BUSINESS PROCESS Advancement of District's Asset Management Program Formalization of Standard Operating Procedures (SOP) and Planned Job Observations (PJO) Develop long-term strategic operations and maintenance program (Total Asset Management) Collect and maintain accurate asset records, including criticality, maintenance history, asset condition, and performance for continuous improvement Cloud migration of the District’s enterprise Geographic Information System (GIS/Esri) and the associated Asset Management and Field Applications Cyber and Physical Security Advance the use of the District's Supervisory Control and Data Acquisition (SCADA) system to further enhance the security and reliability of the distribution system and optimize administration Evaluate new disaster recovery solutions and advance the District's enterprise business continuity program 8 Completed On Schedule Not StartedSam Battikha SCADA/Instrumentation Tech LEARNING AND GROWTH Coordinate workforce planning activities to determine future needs, identify gaps, and implement actions to close the gaps Maximize opportunities to develop employees through training and mentoring Evaluate the implementation of learning and development programs in coordination with partner agencies Analyze and identify workforce trends to address critical gaps between the current workforce and future needs Improve Organization Effectiveness Negotiate successor Memorandum of Understanding (MOU) with the employee association and unrepresented employees to focus on recruitment and retention Implement a cross-functional innovation committee to advance the District’s culture of collaboration and process improvement among departments 9 On Schedule Not Started Left to right: Carlos Ayala, Dustin Schwegel, and Marco Ramirez Utility Maintenance staff Training: Rescue Vactor Truck Training KEY PERFORMANCE INDICATORS TR E N D S MID-YEAR FY 2024 Overall Target 75% Total 34 Reported Quarterly 23 Reported Annually 10 83% 90%88% 95% 83% 90%90%88%88% 50% 60% 70% 80% 90% 100% FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Year-End Target 20 KPIs 20/23 = 87% ON TARGET NOT ON TARGET 3 KPIs 3/23 = 13% Reported Biennial to Triennial 1 10 11 0.85 0.73 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Q1 Q2 Q3 Q4 Result Target 75th Percentile Median 25th Percentile TECHNICAL QUALITY COMPLAINT (AWWA | Customer Relations) TARGET No more than 4.6 complaints per 1,000 customer accounts annually | No more than 1.15 complaints per 1,000 customer accounts per quarter CALCULATION Number of technical quality complaints per year/Number of active accounts per reporting period AWWA BENCHMARK Average of 75th Percentile, 2.6, and Median, 6.6, for population served between 100,001 – 500,000 (Combined Utilities) LAURA YORK Lab Analyst TARGET 100% of all health-related drinking water standards per quarter and annually CALCULATION Number of days the primary health regulations are met/Number of days in the reporting period AWWA BENCHMARK 100% - 75th Percentile for population served between 100,001 – 500,000 (Water)12 100% (FY 23 Q1 & Q2 Result) 99.05% 97.99% 95% 96% 97% 98% 99% 100% Q1 Q2 Q3 Q4 Result Target ANSWER RATE TARGET 97% average answer rate per quarter and annually CALCULATION Number of calls answered/Total number of calls 100%100% 95% 96% 97% 98% 99% 100% Q1 Q2 Q3 Q4 Result Target POTABLE WATER COMPLIANCE RATE (AWWA | Water Operations) 13 70% 72% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% Q1 Q2 Q3 Q4 Result Target PLANNED POTABLE WATER MAINTENANCE RATIO IN $ TARGET 70% of all labor costs spent on preventative maintenance per quarter and annually CALCULATION Total Planned Maintenance Cost/Total Maintenance CostDEANDRE SAVAGE Water Systems Operator III 95%97% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% Q1 Q2 Q3 Q4 Result Target PLANNED RECYCLED WATER MAINTENANCE RATIO IN $ TARGET 70% of all labor costs spent on preventative maintenance per quarter and annually CALCULATION Total Planned Maintenance Cost/Total Maintenance Cost 14 89% 98% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% Q1 Q2 Q3 Q4 Result Target PLANNED WASTEWATER MAINTENANCE RATIO IN $ TARGET 80% of all labor costs spent on preventative maintenance per quarter and annually CALCULATION Total Planned Maintenance Cost/Total Maintenance Cost 3.4% 4.1% 0% 1% 2% 3% 4% 5% 6% 7% Q1 Q2 Q3 Q4 Result Target DISTRIBUTION SYSTEM LOSS TARGET Less than 5% of unaccounted water per quarter and annually CALCULATION Volume purchased from CWA, City of San Diego customers + volume used by District/Volume purchased from CWA, City of San Diego, and RWCTP production 15 $1,138.00 $1,116.64 $500 $700 $900 $1,100 $1,300 $1,500 $1,700 $1,900 Q1 Q2 Q3 Q4 Result Target DIRECT COST OF TREATMENT PER MGD TARGET No more than $1464 per MGD spent on wastewater treatment annually | No more than $1255 MGD spent in Q1 & Q4 and $1673 MGD spent in Q2 & Q3 CALCULATION Total O&M costs directly attributable to sewer treatment/Total volume in MG for one quarter 0.0% 0.5% 0% 1% 2% 3% 4% 5% 6% 7% Q1 Q2 Q3 Q4 Result Target CONSTRUCTION CHANGE ORDER INCIDENCE TARGET No more than 5% per quarter and annually CALCULATION Cost of Change Orders (not including allowances)/Original construction contract amount (not including allowances)16 10% 18% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q1 Q2 Q3 Q4 Result Target CIP PROJECT EXPENDITURES VS. BUDGET TARGET 95% of budget annually (Q1: 15% + Q2: 21% + Q3: 29% + Q4: 30% = 95%) CALCULATION Actual Expenditures/Annual Budget 17 99.99%99.99% 95% 96% 97% 98% 99% 100% 101% Q1 Q2 Q3 Q4 Result Target BILLING ACCURACY TARGET 99.8% billing accuracy per quarter and annually CALCULATION Number of correct bills/Number of bills issued during the reporting period CARLOS ROMERO Customer Service Field Rep II 25%25% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q1 Q2 Q3 Q4 Result Target EASEMENT EVALUATION AND FIELD INSPECTION TARGET 100% assigned easements, evaluated via desktop tools, and inspected annually (100 easements are assigned for FY24 | 25 easements per quarter) CALCULATION Number of easements evaluated and inspected/Total easements assigned for the period 18 JOSUE BEAS Construction Inspector I 0.14 0.27 0 2 4 6 8 10 12 14 16 18 20 Q1 Q2 Q3 Q4 Result Target 75th Percentile Median 25th Percentile POTABLE WATER DISTRIBUTION SYSTEM INTEGRITY (LEAKS) (AWWA | Water Operations) TARGET No more than 2.5 leaks per 100 miles of distribution piping annually | No more than 0.625 leaks per 100 miles of distribution piping per quarter CALCULATION 100 (Number of leaks)/Total miles of distribution piping AWWA BENCHMARK 2.5 – 75th percentile for population served between 100,001-500,000 19 0 0.140 2 4 6 8 10 12 14 16 Q1 Q2 Q3 Q4 Result Target 75th Percentile Median 25th Percentile POTABLE WATER DISTRIBUTION SYSTEM INTEGRITY (BREAKS) (AWWA | Water Operations) TARGET No more than 3 breaks per 100 miles of distribution piping annually | No more than 0.75 breaks per 100 miles of distribution piping per quarter CALCULATION 100 (Number of breaks)/Total miles of distribution piping AWWA BENCHMARK 3 – 75th percentile for population served between 100,001-500,000 0 00 0.5 1 1.5 2 2.5 3 Q1 Q2 Q3 Q4 Result Target RECYCLED WATER SYSTEM INTEGRITY (LEAKS) TARGET No more than 2.5 leaks per 100 miles of recycled distribution system annually | No more than 0.625 leaks per 100 miles of recycled distribution system per quarter CALCULATION 100 (Number of leaks)/Total miles of recycled distribution system 20 0 00 0.5 1 1.5 2 2.5 3 Q1 Q2 Q3 Q4 Result Target RECYCLED WATER SYSTEM INTEGRITY (BREAKS) TARGET No more than 3 breaks per 100 miles of recycled distribution system annually | No more than 0.75 breaks per 100 miles of recycled distribution system per quarter CALCULATION 100 (Number of breaks)/Total miles of recycled distribution system 21 1241 917 0 200 400 600 800 1000 1200 1400 1600 1800 2000 Q1 Q2 Q3 Q4 Result Target SYSTEM VALVE EXERCISING PROGRAM TARGET 20% of District valves exercised annually to accomplish 100% every five years (4092 valves annually | 1023 valves per quarter) CALCULATION Total number of valves exercised per year 322 238 100 150 200 250 300 350 Q1 Q2 Q3 Q4 Result Target HYDRANT MAINTENANCEPROGRAM TARGET 20% of District fire hydrants maintained annually to accomplish 100% every 5 years (1220 fire hydrants annually | 305 fire hydrants per quarter) CALCULATION Total number of fire hydrants maintained 22 0 00 1 2 3 4 5 6 7 8 9 10 Q1 Q2 Q3 Q4 Result Target 75th Percentile Median 25th Percentile SEWER OVERFLOW RATE (AWWA | Wastewater Operations) TARGET 0 overflows per quarter and annually CALCULATION 100 (Number of sewer overflows during the reporting period)/Total miles of pipe in the sewage collection system AWWA BENCHMARK 0 – 75th Percentile for population served between 0-50,000 100%100% 95% 96% 97% 98% 99% 100% 101% Q1 Q2 Q3 Q4 Result Target MARK-OUT ACCURACY TARGET 100% mark-out accuracy per quarter and annually CALCULATION Number of mark-outs performed without an at-fault hit, which is damage to a District facility that results from a missing or erroneous mark-out/Total number of mark-outs 1.46% 2.17% 0% 1% 2% 3% 4% 5% Q1 Q2 Q3 Q4 Result Target EMPLOYEE VOLUNTARY TURNOVER RATE TARGET Less than 5% turnover annually | Less than 1.25% turnover per quarter CALCULATION Number of voluntary terminations (not including retirements)/Average number of employees 23 STAFF TOURS 624-3 and 870-2 Pump Station 7.60 8.58 0 5 10 15 20 25 30 35 40 Q1 Q2 Q3 Q4 Result Target 75th Percentile Median 25th Percentile TRAINING HOURS PER EMPLOYEE (AWWA | Organizational Development) 10.38 17.97 0 10 20 30 40 50 60 70 80 90 100 Q1 Q2 Q3 Q4 Result Target SAFETY TRAINING PROGRAM TARGET 24 hours per field employee annually | 6 hours per employee per quarter CALCULATION Total qualified safety training hours for field employees/Average number of field employees 24 TARGET 15.6 hours per employee annually | 3.9 hours per employee per quarter CALCULATION Total qualified training hours for all employees/Average number of FTEs AWWA BENCHMARK 15.6 – Median for combined utilities RESOURCE LINKS Otay Water District Website | Strategic Plan FY23 - FY26 Strategic Plan Digital Publication QUESTIONS? STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: April 3, 2024 SUBMITTED BY: Jose Martinez General Manager W.O./G.F. NO: N/A DIV. NO. N/A APPROVED BY: Jose Martinez, General Manager SUBJECT: General Manager’s Report GENERAL MANAGER’S OFFICE: •Fix-a-Leak Week – The communication team actively engaged in the Environmental Protection Agency's Annual Fix-a-Leak Week, held from March 18 to March 24. Staff curated a video and various content posts tailored for social media platforms, crafted a dedicated web page, and promoted the initiative across all of the District's social media channels. Additionally, the San Diego County Water Authority featured a story about Fix-a-Leak Week in the Water News Network, highlighting the District's participation. •World Water Day – Communications staff promoted World Water Day, which was held on March 22 on the District’s social media channels. World Water Day celebrates water and inspires action to tackle the global water crisis. A core focus of World Water Day is to support the achievement of a Sustainable Development Goal: water and sanitation for all by 2030. World Water Day is an annual United Nations Observance focusing on the importance of freshwater. •Women in Water Symposium – The communications team actively contributed to the success of the 7th Annual Women in Water Symposium, serving on the organizing committee. The symposium was a sold-out event, with over 200 participants representing more than 40 agencies, companies, and educational institutions. Among the diverse attendees were professionals from the water industry, students, counselors, and educators. The event featured engaging discussions led by industry experts, covering a range of pertinent topics. These included insightful interviews with women excelling in fieldwork, strategies for career advancement, leadership AGENDA ITEM 10 2 development, navigating workplace dynamics, mentorship opportunities, and promoting diversity, equity, inclusion, and belonging. Attendees also gained valuable insights into advocating for workplace needs, managing change and uncertainty, and fostering effective teamwork, all while underscoring the significance of continuous educational and professional growth. The keynote address underscored the pivotal role of communication across different generations, emphasizing its enduring value in fostering understanding and collaboration. The District also hosted a booth in the vendor section to provide information about the District including careers in water. In addition, the symposium concluded with a reception at the Water Conservation Garden, attended by approximately 50 individuals. This post-event gathering, sponsored by the AWWA Cal Nevada section and the Otay Water District, provided a platform for networking and continued dialogue among attendees. • Tour Coordination – On March 8, the general manager, along with board members and office staff, participated in a tour of Scripps Institution of Oceanography. This visit provided an opportunity for the leadership team to gain firsthand knowledge about Scripps' cutting-edge research on weather phenomena such as atmospheric rivers, and their best practices in data collection and management. During the tour, board members launched a weather balloon that reached an altitude of approximately 82,000 feet before bursting. Attendees had the opportunity to review ascension data displayed on a nearby computer, offering a tangible demonstration of the importance of data analysis in preparing for extreme weather events and adapting to climate change. • The Water Conservation Garden and the Joint Powers Authority – Following a meeting held by the Joint Powers Authority on February 23, the District sent $5,000 to the Garden as part of its contribution to cover essential operational expenses estimated at $100,000 to $120,000. Five member agencies of the JPA, including Helix and Otay Water Districts, Sweetwater Water Authority, San Diego County Water Authority, and the City of San Diego contributed based on the ask from the JPA. This will allow the Garden to function while the JPA devises a more sustainable long-term plan. • First Friday Breakfast – Communications staff, alongside the general manager, attended the City of Chula Vista and Chula Vista Chamber's First-Friday Breakfast on March 1. During the event, staff shared updates with attendees about the WaterSmart Landscape Contest and the "Water is Life..." Student Poster Contest. ADMINISTRATIVE SERVICES: Human Resources: 3 • Negotiations – Initial meeting with Association held for March 27, 2024. • Drug-Free & Alcohol-Free Workplace – Make-up training sessions completed on March 19, 2024. • Budget – Finalizing long-term staffing projections and staffing requests submitted by departments. • Recruitments - The District is or will be recruiting for the following positions: o Reclamation Plant Operator I/II/III (two vacancies): ▪ New hire to start 4/2/24; ▪ New recruitment will be initiated for second vacancy. o Accountant: New hire to start 4/2/24. o SCADA/Instrumentation Technician or Senior SCADA/Instrumentation Technician (two vacancies): ▪ Filled via internal promotion on 1/29/24; ▪ New recruitment will be initiated. o Finance Manager: Interviews in progress. o Water Systems Operator: Pursuing candidate. o Asset Management Specialist: Recruitment in progress. o Assistant/Associate/Senior Civil Engineer (two vacancies): Reclassification notification to Association in progress; job posting tentatively scheduled for late March or early April. o Electrician I/II: New recruitment will be initiated. o Senior/Utility Locator: New recruitment will be initiated. o Recycled Water Specialist: New recruitment will be initiated. IT Operations: • Tyler Munis Enterprise Resource Planning (ERP) - The Tyler Munis team was onsite March 11-14 for an ERP analysis workshop. The Munis team delivered comprehensive training on cross-functional responsibilities, covering areas such as AR, General Billing, Cash Management, Cashiering, and Capital Assets. Additionally, the consultant addressed User Access to the new system. Purchasing & Facilities: • Institute for Public Procurement (NIGP) Award - The Institute for Public Procurement (NIGP) has awarded Stephanie Chen, Senior 4 Purchasing & Contracting Analyst, with the coveted Certified Procurement Professional certification (NIGP-CPP). The NIGP-CPP is the fastest growing globally recognized and competency-based public procurement certification available and it is the only certification specifically designed for public procurement leaders. Achieving the NIGP-CPP affirms that Otay Water District, the supplier community, and the public are working with a procurement professional who has achieved the technical competencies, skills, and abilities needed to be a successful leader and demonstrates mastery in leadership, business principles and operations, and public procurement strategy. Achieving the NIGP-CPP requires a combination of formal education, relevant work experience, and passing a competency-based modular exam. Stephanie is also a Certified Public Procurement Officer (CPPO), awarded by the Universal Public Procurement Certification Council (UPPCC). NIGP, established in 1944, is a professional organization dedicated to advancing public sector procurement. Through education, training, certification, and advocacy, NIGP supports procurement professionals, promotes professionalism and integrity, and enhances the effectiveness of public procurement. • Fire Sprinkler 5-Year Certification Testing – The State of California mandates that all Automatic Fire Sprinkler systems undergo a 5-year certification test conducted by a Certified Fire Protection Company. Additionally, the California State Fire Marshal requires a Title 19 NFPA-25 test to be completed every five years. Compliance with NFPA 25 and Title 19 standards is necessary for the fire sprinkler system to operate according to its design specifications. Certification is granted after completion of inspection, testing, and any required repairs. A&D Fire Sprinkler Inc., the District’s fire protection contractor and Certified Fire Protection Company, performed the 5-year inspection of the Administration, Warehouse, and Operations fire sprinkler systems. All three systems passed with five minor items 5 to rectify, including pressure gauges at all three buildings, a 4” control valve that would not shut completely, and a corroded sprinkler head in the Admin Services men’s restroom. During the inspection, Facilities pointed out 2 pinhole leaks that had been clamped off in the Admin Building: one in the lobby above the hard ceiling in front of the Board Room, and the other in the Engineering Department. Both segments of pipe were added to the list for repairs. All the required work was completed during the last two weeks of February. While the lobby ceiling was open and because the Director and General Manager portraits hang in shadow, staff arranged for portrait lighting to be installed. Safety & Security: • Pump Station 980-2 Grate Walkway System Hazard Assessment – Staff met with Arcadis (environmental health and safety and engineering firm) to discuss their upcoming hazard assessment site visit scheduled on Tuesday, April 2nd. The scope of work includes inspecting the grates for safety hazards such as falls, developing fall prevention hazards, preventative maintenance order and any other recommendations. The recommendations will affect contractors and internal staff and frequency and duration of work will be considered. The safety hazard assessment includes internal representatives from Engineering, Utility Maintenance, Water Systems, and Safety. • The Centre's Fall 2023 Leadership Academy Cohort – On Thursday, February 29th, the District’s Safety & Security Specialist, Emilyn Zuniga, conducted a high-level summary capstone project 6 presentation at the graduation ceremony, which took place at the University of San Diego Warren Auditorium. There were 15 students in the leadership management academy track. The intensive, competency-based curriculum prepares employees to integrate the skills, abilities, and competencies gained from the cohort with the challenges within the District. The capstone project was about requesting to implement an in-house Leadership Evolution program, by using transformative strategies for organization growth. In combination with a small number of additional training and service hours, Emilyn will be receiving her Certified Public Manager (CPM) certification. • Confined Space Entry Refresher Training – Scheduled permit-required confined training and discussed the difference between confined spaces (non-permit), permit-required confined spaces, and permit- required spaces that can be temporarily downgraded to a non-permit using alternate entry procedures. The next phase of training will require staff to review the updated pre-entry checklist, flow chart, and the permit. • San Diego (SD) InfraGard Chapter: Sector Coordinator Meeting – InfraGard is a private security and emergency management collaboration and partnership between the Federal Bureau of 7 Investigation (FBI) and the critical sectors. Staff (SD InfraGard Sector Coordinator) met with the Chapter Board President to facilitate sector meetings between the Health Care and Commercial Facilities in order to facilitate a virtual Sector Emergency Management and Security webinar in May and June 2024. Staff continues to forward water and wastewater cybersecurity related resources and webinars to internal staff, water utility safety associations and the San Diego County Water Authority (SDCWA) representatives. FINANCE: • Investment Policy Updates – Staff is currently working on updating the broker/dealer questionnaires, financial statements, SEC certifications, and insurance information for our list of approved brokers. Additionally, staff is reviewing legislation to determine if changes to the Investment Policy are needed. The draft staff report and the investment policy are updated based on recommendations by the California Debt and Investment Advisory Commission which issues its Annual Investment Guide for Local Agencies each year. We expect the staff report to be presented at the May board meeting. • FY 2024 Annual Audit – The audit schedule for the FY 2024 interim audit fieldwork and the final fieldwork has been agreed upon with the auditors. The dates have been scheduled to accommodate the filing requirements with the District Board and Committee meetings, along with filing dates with the California State Controller’s Office and the Government Finance Officers Association. Interim audit fieldwork is scheduled to begin on Tuesday, May 28. • Mid-Year CIP Review – Finance has completed the mid-year review of all CIP expenses for the first six months of FY 2024. Newly completed CIP items have been capitalized and added to the Fixed Asset Master List to be included in the interim audit work. • FY 2023 SEC Annual Bond Debt Disclosures – The SEC and the State of California require that municipal bond issuers disclose financial performance and other key metrics to the public annually. The District has compiled all necessary data and has submitted the information to our Municipal Advisor so that they may file the disclosures with the State of California and on EMMA, which has been designated by the SEC as the official repository for municipal securities. The disclosures have been filed on EMMA. • COVID-19 FEMA Grant Update – On March 4, the District received two more checks from FEMA via CalOES for COVID related Projects. The District is now waiting for one final payment. 8 1. Covered Period (2/24/2020 – 09/14/2020): Project 140037 (COVID-19 Response) ▪ Submission: $218,371.14 ▪ Obligated Amount: $57,299.87 ▪ Expected Payment: End of April 2024. ▪ Expenses: IT equipment, EOC meetings,COVID-19 testing, trainings, temporary waterline, customer communications, and facility disinfection. 2. Covered Period (9/15/2020 – 12/31/21): Project 181436 (Safe Opening and Operation Work) ▪ Submission: $37,553 ▪ Obligated Amount: $37,284 ▪ Payment Received: $37,553.20 on January 8, 2024 ▪ Return of Excess: The difference will be returned to FEMA during the grant close-out process. ▪ Expenses: COVID-19 testing and facility disinfection. 3. Covered Period (1/01/2022 – 07/01/2022): Project 667900 (Safe Opening and Operation Work) ▪ Submission: $16,259.33 ▪ Payment Received: $16,259.33 on March 4, 2024 ▪ Expenses: COVID-19 testing and facility disinfection. 4. Covered Period (7/01/2022 – 05/11/2023): Project 723101 (Safe Opening and Operation Work) ▪ Submission: $5,444.93 ▪ Payment Received: $4,900.44 on March 4, 2024 ▪ Expenses: Facility disinfection. • Low Income Household Water Assistance Program (LIHWAP) - The last day for customers to enroll in LIHWAP was March 31, 2024. Since October 2022, the program has disbursed over $230,000 in water payment assistance to Otay customers. Notably, the program received an extension from the federal government in September 2023, extending its deadline to March 2024. While there are no further extensions at this time, legislation at the federal level has been introduced to make this a permanent program. Customer Service staff have been promoting the program and its deadline to customers via phone and social media posts. • Water and Wastewater Arrearage Funds – The state has approved Otay’s application for the last round of arrearage funding. Otay will receive approximately $65,000 for outstanding water and wastewater balances for services prior to December 31, 2022. Most of this balance will be used to pay off outstanding balances on closed accounts that have been sent to collections. 9 Financial Reporting: • The financial reporting as of February 29, 2024, is as follows: o As of the eighth month ending February 29, 2024, there are total revenues of $80,843,488 and total expenses of $82,570,416. The expenses exceeded revenues by $1,726,928. The deficit is greater than budgeted by $1,240,054 due to lower than budgeted sales volumes which are a result of below average temperatures and rainfall during the summer season. • The financial reporting for investments as of February 29, 2024, is as follows: o The market value shown in the Portfolio Summary and in the Investment Portfolio Details as of February 29, 2024, total $115,811,320 with an average yield to maturity of 3.998%. The total earnings year to date are $2,737,689. ENGINEERING AND WATER SYSTEM OPERATIONS: Engineering: • Vista Diego Hydropneumatic Pump Station Replacement and 12-inch Pipeline Replacement, 1530 Zone, Vista Diego Road: This project includes replacement of the existing Pump Station, which serves the small 1530 Pressure Zone, containing approximately thirty-seven (37) potable water meters and four (4) hydrants. The project also includes 1530 Pressure Zone distribution system improvements in support of the Pump Station Replacement project and replacement of the existing emergency standby generator. An alternative concept, intended to avoid relocating overhead utilities, was presented and well received by District staff on January 31, 2023. A 60% drawing submittal for the replacement Pump Station incorporating alternative retaining walls (rock nail in lieu of typical CMU) and an alternative surge mitigation design was completed August 16, 2023, and a review meeting was held on August 29, 2023. A 60% peer review by the District’s As-needed Engineering Design consultant, NV5, was completed on October 16, 2023. The District’s As-needed Electrical Engineer, EPI, completed their 90% submittal on September 29, 2023. The District’s As-needed Environmental consultant, Chambers Group, has scheduled the remaining biological surveys for spring 2024. The project is within budget and on schedule as projected during the FY 2024 budget cycle. (P2639, P2680, and P2688) • Ralph W. Chapman Water Recycling Facility (RWCWRF) Disinfection System Improvements: The project involves the replacement of the chlorine gas disinfection system with an ultraviolet (UV) process 10 at the Ralph W. Chapman Water Reclamation Facility. Consultant selection for design and construction support went to Carollo Engineers and design work was initiated in July 2021. A Memorandum of Understanding has been reached with Trojan for procuring the UV system through the construction contractor at a bid obtained cost. This will also reduce materials acquisition delays related to this equipment, which is projected to take a year to ship. A construction contract has been awarded to GSE Construction Co., Inc. with the UV submittal to be top priority for getting the project started. The plant engineering report was updated for preparation of completing the permitting process with the state. The contractor has ordered the Trojan UV system, which is estimated to arrive in summer 2024. A Pre-Construction Meeting was held on November 6, 2023. Delivery of the UV system is expected in August 2024. On January 25, 2024, staff received review comments from the Division of Drinking Water review pertaining to the Title 22 Engineering Report update for the RWCWRF. Engineering and Operations staff are working together with the consultant to respond to state comments. On February 21, 2024, staff presented the Disinfection Improvement Project at the Board Workshop as an informational item. Submittals, RFI, and materials are being reviewed, responded, and procured. Notice to Proceed has been issued for April 8, 2024. (R2117 and R2157) • RWCWRF Effluent Pump Station Compressors: The compressors were identified as equipment with a high priority ranking for replacement in the 2017 RWCWRF Facilities Master Plan. The compressors are needed for the surge tank's operation, which protects the 14-inch RWCWRF Effluent Pipeline carrying recycled water from the plant to the recycled water storage reservoirs. In close coordination with the Operations staff, several vendors were contacted for equipment and installation costs. (R2166) • 450-1 Recycled Water Reservoir Stormwater Improvements: Stormwater runoff from the 450-1 Recycled Water Reservoir site has been eroding the downstream area and exposed the District's 30-inch recycled water line. Staff is working with NV5 on potential design and permitting solutions. (R2164) • Zero Emission Vehicles and Charging Infrastructure: This project is for the capital purchase and installation of various electric vehicle support equipment such as charging infrastructure needed to power Zero Emission Vehicles (ZEVs) for light, medium, and heavy- duty electric vehicles. The project is in preparation for compliance with the State of California's Executive Order N-79-20 and the Advanced Clean Fleet Regulation to require ZEV purchases when adding to the District's fleet of vehicles. A 30% EV Charging Station Master Plan has been submitted by As-needed Electrical 11 consultant, Engineering Partners, Inc. (EPI). Engineering is conducting the initial review. Based on initial findings of the Master Plan and possible Grant opportunities, Engineering hired EPI under an As-needed Electrical Agreement to design the first five (5) charging stations for Operations to meet their growing fleet demand for FY 2025. Design drawings will be used to submit for grant opportunities to help offset the capital cost for the charging stations for FY 2025. The District will submit a grant application for the Clean Air For All (CAFA) funding program on or before the April 12, 2024 deadline. (P2684) • Potable Pipeline Replacement Projects: The following set of pipelines are being replaced as a result of past failures, age, lack of redundancy, and/or inadequate fire flow. A 30% design has been submitted by NV5 and staff is currently reviewing the plans. o PL - 8-inch, 850 Zone, Coronado Avenue, Chestnut/Apple (P2608) o PL - 8-inch, 1004 Zone, Eucalyptus Street, Coronado/Date/La Mesa (P2609) o PL - 12-Inch Pipeline Replacement, 803 PZ, Vista Grande (P2615) o PL - 20-Inch, 1296 Zone, Proctor Valley Road from Pioneer Way to Melody Road “South Proctor Road” (P2171) • Olympic Parkway Recycled Water Line Replacement: Several main breaks within the past few years on the 20-inch recycled water line in Olympic Parkway between Heritage Road and La Media Road resulted in the establishment of this Capital Improvement Program project at the May 2021 Board meeting. The engineering firm, NV5, was selected to design the replacement waterline using the District’s As-needed Engineering Design Services contract. The project was awarded to Burtech in January 2023. The City of Chula Vista permits have been obtained. Consideration was given to potentially using trenchless installation, but several drawbacks and limitations eliminated it from selection. Traffic control design was handled through the As-needed Traffic Engineering Services contract. The contractor has started procuring materials and a Pre-Construction Meeting was held on June 8, 2023. The valve manufacturer has notified the contractor that the valves will not be delivered until April 2024. Progress meetings have begun, and the contractor is opening the permit with Chula Vista and staff will work on an outreach notification for the project. A notice to proceed was issued for May 25, 2024. The project is within budget. (R2159) • Paso de Luz and Vista Sierra Waterlines Replacement: The existing 1950’s steel water lines in the Hillsdale area have been identified for replacement due to past failures. Under the contract, the water line between Vista Grande and Vista Sierra will be replaced. 12 Included in this project is the replacement of a water line between Paso de Luz and Telegraph Canyon Road in Chula Vista that is located in an easement on an embankment. The water line was isolated due to a leak, removing the redundancy for this neighborhood. The District Board awarded the contract to CCL Contracting, Inc. in April 2022. Work is completed for both sites, and the final closeout change order (CO #2) was approved at the October 4, 2023 Board meeting. Helix Environmental completed revegetation activities on October 24, 2023, and will continue maintenance for one year. The District evaluated the condition of the abandoned Vista Sierra pipeline and determined that the priority of the Phase 2 portion of the project involving the remaining pipeline that extends to Pence Drive can be delayed. Phase I of the project was accepted on October 30, 2023. The project is within budget and on schedule. (P2612 & P2616) • Cottonwood Sewer Pump Station Replacement: This project involves the replacement of the existing sewer pump station originally constructed in 1986 as a temporary facility due to operational and accessibility deficiencies. The station serves both the District and County of San Diego customers on the southside of Sweetwater River. Improvements will incorporate increased station capacity, now and in the future, with a force main upgrade, as well as emergency storage to avoid a sewage spill. Design is being prepared by Wood Rodgers, Inc., with the preliminary design report completed in October 2023. The geotechnical investigation of the site was completed by Atlas Technical Consultants, LLC using the District’s As-needed Geotechnical contract. The project is within budget and on schedule. (S2069) • 870-2 Reservoir and 870-1 Reservoir Floating Cover/Liner Replacement: This project consists of constructing a new 3.4 MG prestressed concrete potable water tank adjacent to the existing 870-1 Reservoir. The project also includes lowering the existing 870-1 Reservoir 30-inch inlet pipe and replacing the existing floating cover and liner within the existing 870-1 Reservoir. The District’s As-needed Engineering Design consultant, Wood Rodgers, teamed with Richard Brady and Associates (Wood Rodgers/Brady), and delivered the revised 100% civil engineering design on March 11, 2024, and the District's As-needed Electrical consultant, BSE, delivered the revised 100% electrical and instrumentation/control design on March 4, 2024. A 100% Review Meeting is scheduled for April 3, 2024. A construction management and inspection services contract was awarded to Valley Construction Management at the January 2024 Board Meeting. Public construction bid advertisement is tentatively scheduled for May 2024. The Program Environmental Impact Report (PEIR) Addendum is tentatively scheduled for the June 2024 Board meeting. Construction contract award is tentatively scheduled for the August 2024 Board meeting. The project is within budget and on schedule. (P2228 & P2563) 13 • 1004-2 & 485-1 Reservoir Interior/Exterior Coating: This project consists of removing and replacing the interior and exterior coatings of the 1004-2 (1.4 MG) and the 485-1 (1.0 MG) Reservoirs, along with providing structural upgrades, to ensure the tanks comply with both state and federal OSHA standards as well as the American Water Works Association and the County Health Department standards. Unified Field Services Corp. (Unified) was awarded the construction contract at the November 2022 Board Meeting. Unified completed work on the 1004-2 tank and Operations staff have replaced the defective valves on site. The 1004-2 Reservoir was returned to service on October 6, 2023. The work on the 485-1 Reservoir is complete and was returned to service on November 9, 2023. The closeout change order has been processed and recordation of the project acceptance is in process. The project is within budget and was completed on schedule. (P2567 & P2614) • Potable Water Pressure Vessel Program - Rolling Hills: The 2004 era Rolling Hills Hydropneumatic Pump Station or RHHPS hydropneumatic pressure vessel was inspected on June 6, 2017 and February 27, 2023. Both inspection reports noted interior corrosion due to internal coating failure. The February 2023 inspection report recommended a reduction in the safety relief valve pressure setpoint to compensate for internal corrosion. The February 2023 inspection report also suggested that the life expectancy of the vessel may be three (3) years. Consequently, the report recommended interior re-inspection within three (3) years rather than the typical five (5) year inspection frequency. With the hydropneumatic tank at the end of its life and the limited availability of the trailer mounted variable frequency drive pump station (VFD trailer), the tank is scheduled for replacement. On January 23, 2024, the purchase of a hydropneumatic tank from Modern Custom Fabrication, Inc. was approved at the February 7, 2024 Board Meeting. District in-house staff mobilized and have begun connecting the VFD Trailer to the project site since February 9, 2024. (P2663-008000) • Recycled/Reuse Feasibility: Sweetwater Authority (SWA) and Otay Water District are working collaboratively through a Memorandum of Understanding (MOU) to evaluate the feasibility of extending water reuse into the SWA area. On January 23, 2024, the Professional Services Agreement (PSA) for a feasibility study with Carollo Engineers (Carollo) was presented to the EO&WR Committee. On February 7, 2024, the PSA for the planning study was presented to the Board and awarded by the Board to Carollo. (P1210-008000) • Otay Water District Climate Adaptation and Resilience Planning Project: On November 21, 2023, FEMA approved and issued Hazard Mitigation Grant Program (HMGP) funds for the preparation of a Climate Adaptation and Resilience Plan for the District. FEMA 14 authorized a total of $244,939.70. This Plan will include a climate risk and vulnerability assessment as a baseline for focusing efforts to address the impacts of climate change. The Plan will also identify critical assets that are vulnerable to the risks of climate change, develop climate adaptation and resilience strategies, and prioritize greenhouse gas reduction activities by exploring conservation and renewable energy technologies for the water industry. The District had a Kick-off Meeting with Cal OES in late December 2023. As of March 2024, the District is in the process of selecting a consultant to prepare the Plan. The final Plan will be incorporated into the District’s Local Hazard Mitigation Plan Annex. (P1253-009000) • Sewage Flows to Metro vs Planned Capacity: The Metropolitan Water District Amended and Restated Regional Wastewater Disposal Agreement became effective at the start of FY 2023. The District’s annual capacity of 0.38 MGD (139 MG) is now in effect, though the District would need to exceed this capacity for three (3) consecutive years before additional capacity must be acquired. The Metropolitan Water District (Metro) capacity was set based upon the District’s sewer system requirements through planning year 2050. Sewage flow to Metro for FY 2023 was 101.24 MG, below the 139 MG agreement capacity limit. The Ralph W. Chapman Water Reclamation Facility (RWCWRF) had an upset occur in September 2023, resulting in a week and a half of no recycled water production. The District is still on track though to meet the annual capacity limit. Due to low demand of recycled water, the RWCWRF recycled water production was taken offline from 2/8/24 to 2/19/24, which resulted in higher sewer discharge into Metro. 15 • Summary of Budgeted and Sold Meters and EDUs for Fiscal Year 2024 through February, 2024: Water Operations: • On Tuesday, February 20th, process instrument calibrations were performed at the 450-680 Recycled Pump Station. Instrument calibrations are a form of preventative maintenance that is performed annually. The primary significance of instrument calibration is that it maintains accuracy, standardization, and repeatability in measurements, assuring reliable benchmarks and results. Additional efforts are being made to continue this important maintenance program. • On Thursday, February 22nd, Pump Mechanics isolated two pressure vessel tanks at the 980-1 Pump Station, to perform internal tank inspection and cleaning. Inspections and cleanings are performed Date Meters (Budgeted) Meters Sold (Actual) EDUs (Budgeted) EDUs Sold (Actual) Total $ (Budgeted) Total $ Collected (Actual) February 2024 23.4 0 73 0 $955,391 $0 Totals FY 2024 187.3 0 584.3 505.5 $7,643,125 $7,137,474 16 every five years as proactive maintenance and typically take one day to complete. Technical results are pending review. • On Monday, February 26th and Wednesday, March 13th, Treatment Plant staff hosted tours of the Ralph W. Chapman Water Recycling Facility for students enrolled in the Center for Water Studies at Cuyamaca College. The tours were well received by the students and instructors. • On Thursday, February 29th, Wednesday, March 6th, and Friday, March 8th, all PLC programs were manually uploaded from the District’s PLCs and saved as back-ups to be historically maintained. These PLC program back-ups are part of a preventative maintenance program to ensure the database is up to date on the controller programs, and to allow for track changes over time and quick deployment of programs in the event of a field device failure requiring program restoration. • On Tuesday, March 5th, Water Systems staff reported a leak at the Olympic Parkway and Eastlake Parkway Recycled Pressure Reducer Valve. Pump Mechanics replaced a failed stem seal. The pressure reducing station was tested and returned to operation. During this repair, the existing pressure reducer bypass was used to meet the water demands. • On Wednesday, March 6th, Pump Mechanics, in coordination with Water Systems staff, performed major preventive maintenance at the San Miguel Pressure Reducer Station, which included the replacing major parts on the eight-inch valve. During this work, the existing bypass was used and did not affect water demands. • The following events occurred on Thursday, March 7th: o Utility Maintenance staff began repairs on the leaking section of the 12-inch PVC (Poly Vinyl Chloride) water main on Bob Pletcher Way in Chula Vista. The water main began to leak and was isolated on Wednesday, January 10, 2024. The repair was estimated to be well over $60,000 and, per CUPCAA (California Uniform Construction Cost Accounting Act), would need to go out to bid. Once the District received the bids, it was determined that Utility Maintenance staff could complete the repairs for less than the lowest bid, thus rejecting all bids. Utility Maintenance staff began work on Thursday, March 7th by saw cutting the trench on both sides of the casing and then began excavating on the east side of the 125-freeway overpass. The east side would need to be completely exposed and restrained before commencing work on the west side(downhill). Utility Maintenance staff completed the work on the east side then began excavating and removing 40 feet of pipe on the west side. Once 17 the pipe was removed, Utility Maintenance staff installed a temporary test cap on the end of the pipe coming through the casing. The intent of this test cap is to hydro-static test the pipe inside the casing to ensure it is still operational. The pipe inside the casing and the 40 feet of exposed and restrained pipe on the east side passed hydro-static pressure test on Thursday, March 14th. Utility Maintenance staff is currently obtaining estimates on CCTV (Closed-Circuit Television) inspection of the pipe inside the casing for an added layer of certainty that the pipe is still in operational condition. Once the inspection is completed, if the pipe is deemed operational, it will take an estimated five working days to complete the repairs. o Water Systems staff performed a final walk-through inspection on the Otay Crossing Commerce Park project in the Otay Mesa area (Developer Project D0914). Minor items were noted on the punch list, such as paint retouching on appurtenances. Final walk- through inspections are required to ensure proper operation/construction of newly built infrastructure before being accepted by the District. • On Saturday, March 9th, Water Systems staff performed a planned shutdown for a developer project (#D1021) on Cactus Road and Siempre Viva Road south of the 905 Freeway in the Otay Mesa area. This shutdown was required to allow the developer's contractor to make a final tie-in connection to the new section of the 12-inch water main on Cactus Road. This shutdown lasted 12 hours and affected 38 meters and was completed on schedule. One water trailer was available on site for those affected. • On Monday, March 11th, as part of phase one for a developer project (D1132), Water Systems staff performed a planned shutdown on the 24-inch and 12-inch water mains on Alta Road in the Otay Mesa area. This shutdown was required to allow the developer's contractor to realign the existing 24-inch water main on Alta Road for the project. The realignment of the main is scheduled for completion on March 22, 2024. The mains will be re-energized once this work is completed. The shutdown lasted for 12 days and did not impact customers. • On Tuesday, March 12th, a new motor was installed in position #2 at the Steel Canyon Lift Station. This motor was required to be replaced because it had been in operation for more than 20 years and it had high current consumption. In addition, preventive maintenance was performed on the pump. This work was performed in coordination with the Treatment Plant Staff and did not affect the operating demands of the facility. 18 • On Thursday, March 14th, Water Systems staff reported an air leak on the pressure vessel tank at Rancho Jamul hydro hydropneumatic Station. Pump Mechanics found that the air leak was coming from a relief ball valve. This was replaced and the station returned to normal operating conditions. During this repair, the necessary adjustments were made to meet the water demands. • On Monday, March 18th, Water Systems staff performed a mock shutdown at La Media Road and Avenida De La Fuente in the Otay Mesa area. This mock shutdown was needed to evaluate the effectiveness of the main isolation valves for an upcoming planned shutdown needed for a water main end cap repair. The mock shutdown was successful and demonstrated the isolation valves needed to isolate the main had little to no leaking issues. Purchase and Change Orders: • The following table summarizes purchases and change orders issued during the period from February 15 through March 15, 2024 that were within staff signatory authority: Water Conservation and Sales: • Water Conservation – February 2024 usage was 14% lower than February 2013 usage. Since February 2023, customers have saved an average of 15% over 2013 levels. Date Action Amount Project Contractor/ Consultant/Vendor 2/20/2024 P.O. $40,000.00 CY24-25 DELTA DENTAL ADMINISTRATIVE SERVICES DELTA DENTAL OF CALIFORNIA 2/20/2024 P.O. $27,000.00 N. PROCTOR VALLEY RD WATERLINE REPLACEMENT (P2058) BENDER ROSENTHAL INC. 3/04/2024 P.O. $5,153.56 POTABLE WATER PRESSURE VESSEL PROGRAM (P2663) BLUEWATER RUBBER & GASKET CO. 19 • Potable Water Purchases – The February potable water purchases were 1,503 acre-feet which is 13.2% below the budget of 1,731 acre-feet. Cumulative purchases for the year are 18,409 acre-feet, 7.2% under the year-to-date budget of 19,842 acre-feet. • Recycled Water Purchases – The recycled water purchases from the City of San Diego and production at the District’s treatment facility for the month of February were 40 acre-feet which is 61.6% below the budget of 105 acre feet. Cumulative purchases and 20 production for the year are 2,120 acre-feet, 17.7% under the year- to-date budget of 2,578 acre-feet. • The average temperatures for the month of February was approximately three degrees below the three-year historical average. The table below displays the rainfall data for February. Rainfall February Y-T-D Actual 4.58 9.41 Three-year Historical Average 0.85 6.99 Variance 3.73 (436.7%) 2.42 (34.7%) Potable, Recycled, and Sewer (Reporting up to the month of January): • Total number of potable water meters: 51,895. • Total number of sewer connections: 4,751. • Recycled water consumption for the month of February: o Total consumption: 32.55 acre-feet or 10,605,892 gallons. o Average daily consumption: 365,720 gallons per day. o Total cumulative recycled water consumption since February 2023: 2,257.33 acre-feet. o Total number of recycled water meters: 794. • Wastewater flows for the month of February: 21 o Total basin flow: 2,103,690 gallons per day. ▪ This is an increase of 22.86 percent from February 2023. o Spring Valley Sanitation District flows to Metro: 701,299 gallons per day. o Total Otay flow: 1,402,448 gallons per day. o Flow processed at the Ralph W. Chapman Water Recycling Facility: 421,138 gallons per day. o Flow to Metro from Otay Water District: 981,310 gallons per day. o By the end of February there were 6,751 wastewater EDUs. Exhibit A Annual YTD REVENUES:Budget Actual Budget Variance Var % Potable Water Sales 70,298,000$ 43,378,477$ 47,891,000$ (4,512,523)$ (9.4%) Recycled Water Sales 10,906,000 6,279,737 7,517,090 (1,237,353) (16.5%) Potable Energy Charges 2,916,000 1,905,080 1,968,100 (63,020) (3.2%) Potable System Charges 13,011,000 8,575,826 8,524,000 51,826 0.6% Potable MWD & CWA Fixed Charges 13,746,000 9,050,674 9,022,000 28,674 0.3% Potable Penalties and Other Fees 978,000 731,792 676,609 55,183 8.2% Total Water Sales 111,855,000 69,921,586 75,598,799 (5,677,213) (7.5%) Sewer Charges 3,468,000 2,312,533 2,300,000 12,533 0.5% Meter Fees 168,000 125,870 111,600 14,270 12.8% Capacity Fee Revenues 2,352,000 1,938,244 1,568,000 370,244 23.6% Non-Operating Revenues 2,770,600 1,975,769 1,847,400 128,369 6.9% Tax Revenues 6,243,000 3,886,040 3,807,500 78,540 2.1% Interest 1,091,000 683,447 727,333 (43,887) (6.0%) Total Revenues 127,947,600$ 80,843,488$ 85,960,632$ (5,117,145)$ (6.0%) EXPENSES: Potable Water Purchases 48,147,000$ 30,243,939$ 32,282,000$ 2,038,061$ 6.3% Recycled Water Purchases 5,798,000 4,129,108 4,129,108 - 0.0% CWA-Infrastructure Access Charge 3,146,000 2,084,052 2,084,000 (52) (0.0%) CWA-Customer Service Charge 1,971,000 1,318,880 1,301,800 (17,080) (1.3%) CWA-Reliability Charge 3,235,000 2,132,000 2,124,500 (7,500) (0.4%) CWA-Emergency Storage Charge 4,865,000 3,221,468 3,217,400 (4,068) (0.1%) MWD-Capacity Res Charge 562,000 449,364 399,800 (49,564) (12.4%) MWD-Readiness to Serve Charge 654,000 413,552 436,000 22,448 5.1% Subtotal Water Purchases 68,378,000 43,992,363 45,974,608 1,982,245 4.3% Power Charges 4,285,000 3,271,158 2,969,300 (301,858) (10.2%) Payroll & Related Costs 24,590,600 16,254,570 17,056,900 802,330 4.7% Materials & Maintenance 4,824,900 2,831,795 3,216,800 385,005 12.0% Administrative Expenses 8,585,300 4,662,979 5,707,499 1,044,520 18.3% Legal Fees 357,000 273,551 238,400 (35,151) (14.7%) Expansion Reserve 4,320,000 2,880,000 2,880,000 - 0.0% Betterment Reserve 2,562,000 1,708,000 1,708,000 - 0.0% Replacement Reserve 8,774,800 5,849,600 5,849,600 - 0.0% OPEB Trust 1,270,000 846,400 846,400 - 0.0% Total Expenses 127,947,600$ 82,570,416$ 86,447,507$ 3,877,091$ 4.5% EXCESS REVENUES(EXPENSE) -$ (1,726,928)$ (486,874)$ (1,240,054)$ OTAY WATER DISTRICT COMPARATIVE BUDGET SUMMARY FOR THE EIGHT MONTHS ENDED FEBRUARY 29, 2024 F:/MORPT/FS2024-P8.xlsx 3/21/2024 11:26 AM The year-to-date excess expenses of $1,726,928 is $1,240,054 more than the budgeted deficit of $486,874. COMPARATIVE BUDGET SUMMARY NET REVENUE AND EXPENSES FOR THE EIGHT MONTHS ENDED FEBRUARY 29, 2024 -$2,000,000 -$1,800,000 -$1,600,000 -$1,400,000 -$1,200,000 -$1,000,000 -$800,000 -$600,000 -$400,000 -$200,000 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN YTD Actual Net Revenues YTD Budget Net Revenues YTD Variance in Net Revenues OTAY WATER DISTRICT INVESTMENT PORTFOLIO REVIEW February 29, 2024 INVESTMENT OVERVIEW & MARKET STATUS: At the Federal Reserve Board's regular meeting on July 26, 2023, the Committee increased the target range for the federal funds rate from 5.25% to 5.50%. There have been no further changes made to the federal funds rate at the most recent meeting which was held on March 20, 2024. Recent indicators suggest a sustained expansion of economic activity, accompanied by a moderation in job growth since early last year. Despite this, the economy continues to perform strongly, unemployment remains low, and inflation has moderated but remains elevated. The Committee will closely monitor incoming information and assess the implications for monetary policy. The Committee's long-term goal is to attain maximum employment and inflation of 2%. The Committee will continue to reduce its holdings of Treasury securities, agency debt, and agency mortgage-backed securities, as outlined in the Plans for Reducing the Size of the Federal Reserve's Balance Sheet issued in May 2022. The Committee will continue to observe the effects of incoming information on the economic outlook. In determining the timing and size of future adjustments to the target range for the federal funds rate, they went on to say: "The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments." The District's effective rate of return for February 2024 was 4.01%, 15 basis points higher than the previous month. LAIF's return was 11 basis points higher than the last month, reaching an average effective yield of 4.12% for February 2024. Based on our success at maintaining a competitive rate of return on our portfolio during this period of increasing interest rates, no changes in investment strategy regarding returns on investment are being considered. Under the District's Investment Policy, all District funds continue to be managed based on the objectives, in priority order, of safety, liquidity, and return on investment. PORTFOLIO COMPLIANCE: February 29, 2024 Investment State Limit Otay Limit Otay Actual 8.01: Treasury Securities 100% 100% 5.09% 8.02: Local Agency Investment Fund (Operations) $75 Million $75 Million $41.32 Million 8.03: Federal Agency Issues 100% 100% 45.08% 8.04: Certificates of Deposit 30% 15% 0 8.05: Short-Term Commercial Notes 25% 10% 0 8.06: Medium-Term Commercial Debt 30% 10% 0 8.07: Money Market Mutual Funds 20% 10% 0.54% 8.08: San Diego County Pool 100% 100% 13.39% 12.0: Maximum Single Financial Institution 100% 50% 0.55% $647,279 0.56% $56,959,761 48.74% $59,248,869 50.70% Otay Water District Investment Portfolio: 02/29/2024 Banks (Passbook/Checking/CD)Pools (LAIF & County)Agencies,Treasury Securities & Money Market Mutual Funds Total Cash and Investments: $116,855,909 (Book Value) July FY23 Aug FY23 Sep FY23 1st Qtr FY23 Oct FY23 Nov FY23 Dec FY23 2nd Qtr FY23 Jan FY23 Feb FY23 Mar FY23 3rd Qtr FY23 Apr FY23 May FY23 June FY23 4th Qtr FY23 Jul FY24 Aug FY24 Sep FY24 1st Qtr FY24 Oct FY24 Nov FY24 Dec FY24 2nd Qtr FY24 Jan FY24 Feb FY24 Otay 1.32 1.46 1.74 1.50 2.06 2.52 2.91 2.49 3.00 3.44 3.46 3.30 3.65 3.58 3.74 3.66 3.71 3.74 3.83 3.76 3.76 3.86 3.90 3.84 3.86 4.01 LAIF 1.09 1.28 1.51 1.29 1.77 2.01 2.17 1.98 2.43 2.62 2.83 2.63 2.87 2.99 3.17 3.01 3.31 3.43 3.53 3.42 3.67 3.84 3.93 3.81 4.01 4.12 Difference 0.23 0.18 0.23 0.21 0.29 0.51 0.74 0.51 0.57 0.82 0.63 0.67 0.78 0.59 0.57 0.65 0.40 0.31 0.30 0.34 0.09 0.02 -0.03 0.03 -0.15 -0.11 -0.50 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 Re t u r n o n I n v e s t m e n t s Month Performance Measure FY-24 Return on Investment Otay LAIF Difference Target: Meet or Exceed 100% of LAIF Month End Portfolio Management February 29, 2024 Portfolio Summary % of Portfolio Book ValueInvestmentsMarket Value Par Value Days to MaturityTerm YTM 360 Equiv. YTM 365 Equiv. Federal Agency Issues- Callable 12,998,168.42 77711.19 3.65020912,951,100.0013,000,000.00 3.701 Treasury Securities - Coupon 5,948,450.16 5735.12 5.0244565,960,730.006,000,000.00 5.094 Federal Agency Issues - Bullet 39,675,328.76 80534.14 3.70232839,115,283.8039,796,000.00 3.754 Money Market 626,921.86 10.54 5.1051626,921.86626,921.86 5.176 Local Agency Investment Fund (LAIF)41,315,776.04 135.55 4.066141,049,005.4941,315,776.04 4.122 San Diego County Pool 15,643,984.94 113.46 4.014115,461,000.0015,643,984.94 4.070 116,208,630.18 100.00%Investments 115,164,041.15116,382,682.84 392 159 3.943 3.998 Cash (not included in yield calculations) Passbook/Checking 647,278.68 1 0.8851647,278.68647,278.68 0.897 116,855,908.86Total Cash and Investments 115,811,319.83117,029,961.52 392 159 3.943 3.998 Current Year February 29 371,774.04 Fiscal Year To Date 2,737,688.69 Average Daily Balance Effective Rate of Return 116,569,291.85 110,985,698.72 3.69%4.01% Total Earnings Month Ending I hereby certify that the investments contained in this report are made in accordance with the District Investment Policy Number 27 adopted by the Board of Directors on May 03, 2023. The investments provide sufficient liquidity to meet the cash flow requirements of the District for the next six months of expenditures. __________________________________________________ ____________________ Joseph Beachem, Chief Financial Officer Portfolio OTAY NL! APData Updated: SET_PM1: 03/20/2024 14:03 Reporting period 02/01/2024-02/29/2024 Run Date: 03/20/2024 - 14:03 PM (PRF_PM1) 7.3.11 Report Ver. 7.3.11 1 1 San Diego County Pool February Financial report is not yet available. This report is using the January annualized yield and FMV. 3/21/2024 YTM 360 Page 1 Par Value Book Value Maturity Date Stated RateMarket Value February 29, 2024 Portfolio Details - Investments Average BalanceIssuer Portfolio Management Month End Days to MaturityMoody'sCUSIP Investment # Purchase Date Federal Agency Issues- Callable 1.294Federal Home Loan Bank2395 2,000,000.00 1,998,168.42 07/26/20241.08002/03/2022 1,964,640.00 Aaa3130AQL68 147 1.973Federal Home Loan Bank2396 2,000,000.00 2,000,000.00 03/28/20242.00003/30/2022 1,994,980.00 Aaa3130ARE31 27 3.652Federal Home Loan Bank2401 3,000,000.00 3,000,000.00 06/13/20243.70009/13/2022 2,984,190.00 Aaa3130AT4S3 104 4.932Federal Home Loan Mortgage2406 3,000,000.00 3,000,000.00 04/25/20255.00010/25/2022 3,007,140.00 Aaa3134GX6A7 420 5.055Federal Home Loan Mortgage2408 3,000,000.00 3,000,000.00 11/22/20245.12511/28/2022 3,000,150.00 Aaa3134GY3P5 266 12,998,168.4212,951,100.0013,000,000.0014,032,462.14Subtotal and Average 3.650 209 Treasury Securities - Coupon 4.998US TREASURY2418 3,000,000.00 2,987,085.13 07/31/20254.75011/01/2023 2,996,130.00 Aaa91282CHN4 517 5.051US TREASURY2419 3,000,000.00 2,961,365.03 03/31/20253.87511/09/2023 2,964,600.00 Aaa91282CGU9 395 5,948,450.165,960,730.006,000,000.005,946,731.09Subtotal and Average 5.024 456 Federal Agency Issues - Bullet 2.855Federal Farm Credit Bank2397 2,000,000.00 1,996,826.90 04/25/20252.75004/26/2022 1,953,780.00 Aaa3133ENVC1 420 4.261Federal Farm Credit Bank2402 3,000,000.00 2,996,917.92 09/30/20254.25009/30/2022 2,973,840.00 Aaa3133ENP95 578 4.488Federal Farm Credit Bank2405 3,000,000.00 2,996,874.40 10/17/20244.37510/19/2022 2,984,100.00 Aaa3133ENS43 230 4.284Federal Farm Credit Bank2410 3,000,000.00 2,997,853.93 12/20/20244.25012/20/2022 2,978,580.00 Aaa3133EN4N7 294 4.864Federal Farm Credit Bank2424 3,000,000.00 2,998,008.51 07/28/20254.87511/17/2023 3,001,200.00 Aaa3133EPRS6 514 3.449Federal Home Loan Bank2400 3,000,000.00 2,999,008.87 06/14/20243.37509/08/2022 2,983,560.00 Aaa3130AT4D6 105 4.338Federal Home Loan Bank2404 3,000,000.00 2,999,663.65 09/13/20244.37510/18/2022 2,988,570.00 Aaa3130ATND5 196 4.928Federal Home Loan Bank2417 4,000,000.00 4,000,000.00 02/28/20255.00007/03/2023 3,996,360.00 Aaa3130AV7L0 364 0.612Federal Home Loan Mortgage2391 1,045,000.00 1,041,042.79 09/23/20250.37509/16/2021 976,082.25 Aaa3137EAEX3 571 0.618Federal Home Loan Mortgage2392 2,751,000.00 2,740,367.47 09/23/20250.37509/22/2021 2,569,571.55 Aaa3137EAEX3 571 0.996Federal National Mortage Assoc2393 2,000,000.00 2,010,267.02 01/07/20251.62512/09/2021 1,942,080.00 Aaa3135G0X24 312 1.129Federal National Mortage Assoc2394 2,000,000.00 1,978,846.19 11/07/20250.50012/15/2021 1,864,600.00 Aaa3135G06G3 616 4.787Federal National Mortage Assoc2416 8,000,000.00 7,919,651.11 07/02/20241.75005/26/2023 7,902,960.00 Aaa3135GOV75 123 39,675,328.7639,115,283.8039,796,000.0039,664,239.38Subtotal and Average 3.702 328 Money Market 5.188Blackrock T - Fund Inst9010 12,816.22 12,816.22 5.26007/01/2023 12,816.22RESERVE-10A WRB 1 5.188Blackrock T - Fund Inst9011 27,699.14 27,699.14 5.26007/01/2023 27,699.14RESERVE 10 BABS 1 5.099FIRST AMERICAN US TREASURY9016 586,406.50 586,406.50 5.17007/01/2023 586,406.50OWD TRUST & CUS 1 626,921.86626,921.86626,921.86864,939.10Subtotal and Average 5.105 1 Portfolio OTAY NL! APData Updated: SET_PM1: 03/20/2024 14:03 Run Date: 03/20/2024 - 14:03 PM (PRF_PM2) 7.3.11 Report Ver. 7.3.11 YTM 360 Page 2 Par Value Book Value Maturity Date Stated RateMarket Value February 29, 2024 Portfolio Details - Investments Average BalanceIssuer Portfolio Management Month End Days to MaturityMoody'sCUSIP Investment # Purchase Date Local Agency Investment Fund (LAIF) 4.066STATE OF CALIFORNIA9001 41,315,776.04 41,315,776.04 4.12241,049,005.49LAIF 1 41,315,776.0441,049,005.4941,315,776.0438,620,948.45Subtotal and Average 4.066 1 San Diego County Pool 4.014San Diego County9007 15,643,984.94 15,643,984.94 4.07015,461,000.00SD COUNTY POOL 1 15,643,984.9415,461,000.0015,643,984.9415,643,984.94Subtotal and Average 4.014 1 116,569,291.85 116,382,682.84 3.943 159115,164,041.15 116,208,630.18Total and Average Portfolio OTAY NL! APData Updated: SET_PM1: 03/20/2024 14:03 Run Date: 03/20/2024 - 14:03 PM (PRF_PM2) 7.3.11 YTM 360 Page 3 Par Value Book Value Stated RateMarket Value February 29, 2024 Portfolio Details - Cash Average BalanceIssuer Portfolio Management Month End Days to MaturityMoody'sCUSIP Investment # Purchase Date US Bank 0.009STATE OF CALIFORNIA9002 0.00 0.00 0.00907/01/2023 0.00US BANK MONEY 1 0.000STATE OF CALIFORNIA9003 2,950.00 2,950.002,950.00PETTY CASH 1 0.986STATE OF CALIFORNIA9004 580,816.24 580,816.24 1.000580,816.24OPERATING 1 0.000STATE OF CALIFORNIA9005 13,382.03 13,382.0307/01/2023 13,382.03PAYROLL 1 0.000STATE OF CALIFORNIA9014 50,130.41 50,130.4107/01/2023 50,130.41FLEX ACCT 1 0.00 116,569,291.85 117,029,961.52 3.943 159 1Average Balance 115,811,319.83 116,855,908.86Total Cash and Investments Portfolio OTAY NL! APData Updated: SET_PM1: 03/20/2024 14:03 Run Date: 03/20/2024 - 14:03 PM (PRF_PM2) 7.3.11 Month End Activity Report Sorted By Issuer February 1, 2024 - February 29, 2024 Current Rate Transaction Date BalanceBeginning Balance Ending Par Value Percent of Portfolio Par Value CUSIP Investment #Issuer Purchases or Deposits Redemptions or Withdrawals Issuer: Blackrock T - Fund Inst Money Market Blackrock T - Fund Inst9010 56.555.260 0.00RESERVE-10A WRB Blackrock T - Fund Inst9011 122.235.260 0.00RESERVE 10 BABS 0.0040,336.58 40,515.36Subtotal and Balance 178.78 178.78 0.0040,336.58 40,515.360.035%Issuer Subtotal Issuer: STATE OF CALIFORNIA US Bank STATE OF CALIFORNIA9004 454,164.101.000 851,393.59OPERATING STATE OF CALIFORNIA9005 0.00 357,856.65PAYROLL STATE OF CALIFORNIA9014 35,332.99 17,928.32FLEX ACCT 1,227,178.561,384,960.15 647,278.68Subtotal and Balance 489,497.09 Local Agency Investment Fund (LAIF) STATE OF CALIFORNIA9001 9,350,000.004.122 6,400,000.00LAIF 6,400,000.0038,365,776.04 41,315,776.04Subtotal and Balance 9,350,000.00 9,839,497.09 7,627,178.5639,750,736.19 41,963,054.7235.857%Issuer Subtotal Issuer: FIRST AMERICAN US TREASURY Money Market FIRST AMERICAN US TREASURY9016 2,129,910.335.170 2,000,000.00OWD TRUST & CUS 2,000,000.00456,496.17 586,406.50Subtotal and Balance 2,129,910.33 2,129,910.33 2,000,000.00456,496.17 586,406.500.501%Issuer Subtotal Issuer: Federal Farm Credit Bank Federal Agency Issues - Bullet 14,000,000.00 14,000,000.00Subtotal and Balance Portfolio OTAY NL! APData Updated: SET_PM1: 03/20/2024 14:03 Run Date: 03/20/2024 - 14:03 DA (PRF_DA) 7.3.11 Report Ver. 7.3.11 Current Rate Transaction Date BalanceBeginning Balance Ending Par Value Page 2 Percent of Portfolio Par Value February 1, 2024 - February 29, 2024 Activity Report Month End CUSIP Investment #Issuer Purchases or Deposits Redemptions or Withdrawals 0.00 0.0014,000,000.00 14,000,000.0011.963%Issuer Subtotal Issuer: Federal Home Loan Bank Federal Agency Issues- Callable Federal Home Loan Bank2398 0.002.650 02/16/2024 2,000,000.003130ARWD9 2,000,000.009,000,000.00 7,000,000.00Subtotal and Balance 0.00 Federal Agency Issues - Bullet 10,000,000.00 10,000,000.00Subtotal and Balance 0.00 2,000,000.0019,000,000.00 17,000,000.0014.526%Issuer Subtotal Issuer: Federal Home Loan Mortgage Federal Agency Issues- Callable 6,000,000.00 6,000,000.00Subtotal and Balance Federal Agency Issues - Bullet 3,796,000.00 3,796,000.00Subtotal and Balance 0.00 0.009,796,000.00 9,796,000.008.371%Issuer Subtotal Issuer: Federal National Mortage Assoc Federal Agency Issues - Bullet 12,000,000.00 12,000,000.00Subtotal and Balance 0.00 0.0012,000,000.00 12,000,000.0010.254%Issuer Subtotal Issuer: San Diego County San Diego County Pool 15,643,984.94 15,643,984.94Subtotal and Balance 0.00 0.0015,643,984.94 15,643,984.9413.368%Issuer Subtotal Issuer: US TREASURY Portfolio OTAY NL! APData Updated: SET_PM1: 03/20/2024 14:03 Run Date: 03/20/2024 - 14:03 DA (PRF_DA) 7.3.11 Report Ver. 7.3.11 Current Rate Transaction Date BalanceBeginning Balance Ending Par Value Page 3 Percent of Portfolio Par Value February 1, 2024 - February 29, 2024 Activity Report Month End CUSIP Investment #Issuer Purchases or Deposits Redemptions or Withdrawals Issuer: US TREASURY Treasury Securities - Coupon 6,000,000.00 6,000,000.00Subtotal and Balance 0.00 0.006,000,000.00 6,000,000.005.127%Issuer Subtotal 116,687,553.88 117,029,961.52Total11,627,178.5611,969,586.20100.000% Portfolio OTAY NL! APData Updated: SET_PM1: 03/20/2024 14:03 Run Date: 03/20/2024 - 14:03 DA (PRF_DA) 7.3.11 Report Ver. 7.3.11 Month End Duration Report Sorted by Investment Type - Investment Type Through 02/29/2024 Investment #Security ID Issuer Investment Class Book Value Par Value Market Value Current Rate YTM Current Yield Maturity/ Call Date DurationModified360Fund Federal Home Loan Bank239599 2,000,000.00 1,964,640.003130AQL68 5.532 07/26/2024 0.4021,998,168.42 1.294Fair1.0800000 Federal Home Loan Bank239699 2,000,000.00 1,994,980.003130ARE31 5.196 03/28/2024 0.0732,000,000.00 1.973Fair2.0000000 Federal Home Loan Bank240199 3,000,000.00 2,984,190.003130AT4S3 5.527 06/13/2024 0.2843,000,000.00 3.652Fair3.7000000 Federal Home Loan Mortgage240699 3,000,000.00 3,007,140.003134GX6A7 4.790 04/25/2025 1.0873,000,000.00 4.932Fair5.0000000 Federal Home Loan Mortgage240899 3,000,000.00 3,000,150.003134GY3P5 5.129 11/22/2024 0.6943,000,000.00 5.055Fair5.1250000 US TREASURY241899 3,000,000.00 2,996,130.0091282CHN4 4.848 07/31/2025 1.3502,987,085.13 4.998Fair4.7500000 US TREASURY241999 3,000,000.00 2,964,600.0091282CGU9 5.006 03/31/2025 1.0272,961,365.03 5.051Fair3.8750000 Federal Home Loan Mortgage239199 1,045,000.00 976,082.253137EAEX3 4.811 09/23/2025 1.5181,041,042.79 0.612Fair.37500000 Federal Home Loan Mortgage239299 2,751,000.00 2,569,571.553137EAEX3 4.811 09/23/2025 1.5182,740,367.47 0.618Fair.37500000 Federal National Mortage Assoc239399 2,000,000.00 1,942,080.003135G0X24 5.153 01/07/2025 0.8242,010,267.02 0.996Fair1.6250000 Federal National Mortage Assoc239499 2,000,000.00 1,864,600.003135G06G3 4.732 11/07/2025 1.6361,978,846.19 1.129Fair.50000000 Federal Farm Credit Bank239799 2,000,000.00 1,953,780.003133ENVC1 4.843 04/25/2025 1.1021,996,826.90 2.855Fair2.7500000 Federal Home Loan Bank240099 3,000,000.00 2,983,560.003130AT4D6 5.263 06/14/2024 0.2872,999,008.87 3.449Fair3.3750000 Federal Farm Credit Bank240299 3,000,000.00 2,973,840.003133ENP95 4.831 09/30/2025 1.4822,996,917.92 4.261Fair4.2500000 Federal Home Loan Bank240499 3,000,000.00 2,988,570.003130ATND5 5.111 09/13/2024 0.5092,999,663.65 4.338Fair4.3750000 Federal Farm Credit Bank240599 3,000,000.00 2,984,100.003133ENS43 5.253 10/17/2024 0.6012,996,874.40 4.488Fair4.3750000 Federal Farm Credit Bank241099 3,000,000.00 2,978,580.003133EN4N7 5.178 12/20/2024 0.7722,997,853.93 4.284Fair4.2500000 Federal National Mortage Assoc241699 8,000,000.00 7,902,960.003135GOV75 5.468 07/02/2024 0.3367,919,651.11 4.787Fair1.7500000 Federal Home Loan Bank241799 4,000,000.00 3,996,360.003130AV7L0 5.096 02/28/2025 0.9554,000,000.00 4.928Fair5.0000000 Federal Farm Credit Bank242499 3,000,000.00 3,001,200.003133EPRS6 4.848 07/28/2025 1.3402,998,008.51 4.864Fair4.8750000 Blackrock T - Fund Inst901099 12,816.22 12,816.22RESERVE-10A 5.260 0.00012,816.22 5.188Amort5.2600000 Blackrock T - Fund Inst901199 27,699.14 27,699.14RESERVE 10 5.260 0.00027,699.14 5.188Amort5.2600000 FIRST AMERICAN US TREASURY901699 586,406.50 586,406.50OWD TRUST &5.170 0.000586,406.50 5.099Amort5.1700000 Portfolio OTAY NL! APPage 1Data Updated: SET_PM1: 03/20/2024 14:03 Run Date: 03/20/2024 - 14:03 DU (PRF_DU) 7.3.11 Report Ver. 7.3.11 Investment #Security ID Issuer Investment Class Book Value Par Value Market Value Current Rate YTM Current Yield Maturity/ Call Date DurationModified360 Sorted by Investment Type - Investment Type Duration Report Month End Through 02/29/2024 Fund STATE OF CALIFORNIA900199 41,315,776.04 41,049,005.49LAIF 4.122 0.00041,315,776.04 4.066Fair4.1220000 San Diego County900799 15,643,984.94 15,461,000.00SD COUNTY 4.070 0.00015,643,984.94 4.014Fair4.0700000 4.621 0.414116,208,630.18 116,382,682.84 115,164,041.15Report Total † = Duration can not be calculated on these investments due to incomplete Market price data. Portfolio OTAY NL! APPage 2Data Updated: SET_PM1: 03/20/2024 14:03 Run Date: 03/20/2024 - 14:03 DU (PRF_DU) 7.3.11 Report Ver. 7.3.11 Month End GASB 31 Compliance Detail Sorted by Fund - Fund February 1, 2024 - February 29, 2024 Investment #Maturity Date Beginning Invested Value Purchase of Principal InvestmentClassFundCUSIP Adjustment in Value Ending Invested Value Addition to Principal Redemption of Principal Amortization Adjustment Change in Market Value Fund: Treasury Fund 2392 2,577,356.88Fair Value 09/23/2025 -7,785.3399 2,569,571.553137EAEX30.00 0.00 0.00 0.00 2408 3,003,360.00Fair Value 11/22/2024 -3,210.0099 3,000,150.003134GY3P50.00 0.00 0.00 0.00 2406 3,012,630.00Fair Value 04/25/2025 -5,490.0099 3,007,140.003134GX6A70.00 0.00 0.00 0.00 2391 979,039.60Fair Value 09/23/2025 -2,957.3599 976,082.253137EAEX30.00 0.00 0.00 0.00 2393 1,942,700.00Fair Value 01/07/2025 -620.0099 1,942,080.003135G0X240.00 0.00 0.00 0.00 2394 1,870,400.00Fair Value 11/07/2025 -5,800.0099 1,864,600.003135G06G30.00 0.00 0.00 0.00 2416 7,884,640.00Fair Value 07/02/2024 18,320.0099 7,902,960.003135GOV750.00 0.00 0.00 0.00 2400 2,981,460.00Fair Value 06/14/2024 2,100.0099 2,983,560.003130AT4D60.00 0.00 0.00 0.00 2396 1,989,900.00Fair Value 03/28/2024 5,080.0099 1,994,980.003130ARE310.00 0.00 0.00 0.00 2398 1,997,880.00Fair Value 02/16/2024 2,120.0099 0.003130ARWD90.00 0.00 2,000,000.00 0.00 2401 2,982,210.00Fair Value 06/13/2024 1,980.0099 2,984,190.003130AT4S30.00 0.00 0.00 0.00 2417 4,012,520.00Fair Value 02/28/2025 -16,160.0099 3,996,360.003130AV7L00.00 0.00 0.00 0.00 2404 2,989,530.00Fair Value 09/13/2024 -960.0099 2,988,570.003130ATND50.00 0.00 0.00 0.00 2395 1,962,720.00Fair Value 07/26/2024 1,920.0099 1,964,640.003130AQL680.00 0.00 0.00 0.00 9003 2,950.00Amortized 0.0099 2,950.00PETTY CASH 0.00 0.00 0.00 0.00 9004 978,045.73Amortized 0.0099 580,816.24OPERATING0.00 454,164.10 851,393.59 0.00 9014 32,725.74Amortized 0.0099 50,130.41FLEX ACCT 0.00 35,332.99 17,928.32 0.00 9001 38,118,053.25Fair Value -19,047.7699 41,049,005.49LAIF0.00 9,350,000.00 6,400,000.00 0.00 9005 371,238.68Amortized 0.0099 13,382.03PAYROLL0.00 0.00 357,856.65 0.00 2410 2,986,080.00Fair Value 12/20/2024 -7,500.0099 2,978,580.003133EN4N70.00 0.00 0.00 0.00 2424 3,019,320.00Fair Value 07/28/2025 -18,120.0099 3,001,200.003133EPRS60.00 0.00 0.00 0.00 2405 2,989,260.00Fair Value 10/17/2024 -5,160.0099 2,984,100.003133ENS430.00 0.00 0.00 0.00 2402 2,992,620.00Fair Value 09/30/2025 -18,780.0099 2,973,840.003133ENP950.00 0.00 0.00 0.00 2397 1,960,060.00Fair Value 04/25/2025 -6,280.0099 1,953,780.003133ENVC10.00 0.00 0.00 0.00 2418 3,014,070.00Fair Value 07/31/2025 -17,940.0099 2,996,130.0091282CHN40.00 0.00 0.00 0.00 2419 2,975,040.00Fair Value 03/31/2025 -10,440.0099 2,964,600.0091282CGU90.00 0.00 0.00 0.00 9007 15,461,000.00Fair Value 0.0099 15,461,000.00SD COUNTY POOL 0.00 0.00 0.00 0.00 9016 456,496.17Amortized 0.0099 586,406.50OWD TRUST & CUS 0.00 2,129,910.33 2,000,000.00 0.00 9011 27,576.91Amortized 0.0099 27,699.14RESERVE 10 BABS 0.00 122.23 0.00 0.00 9010 12,759.67Amortized 0.0099 12,816.22RESERVE-10A WRB 0.00 56.55 0.00 0.00 Portfolio OTAY NL! APData Updated: SET_PM1: 03/20/2024 14:03 Run Date: 03/20/2024 - 14:03 GD (PRF_GD) 7.3.11 Report Ver. 7.3.11 Investment #Maturity Date Beginning Invested Value Purchase of Principal InvestmentClass Sorted by Fund - Fund Fund Page 2 CUSIP Adjustment in Value Ending Invested Value Addition to Principal Redemption of Principal Amortization Adjustment Change in Market Value GASB 31 Compliance Detail Month End 115,583,642.63Subtotal -114,730.44 115,811,319.830.00 11,969,586.20 11,627,178.56 0.00 115,583,642.63Total 115,811,319.83-114,730.440.00 11,969,586.20 11,627,178.56 0.00 Portfolio OTAY NL! APData Updated: SET_PM1: 03/20/2024 14:03 Run Date: 03/20/2024 - 14:03 GD (PRF_GD) 7.3.11 Report Ver. 7.3.11 Month End Interest Earnings Sorted by Fund - Fund February 1, 2024 - February 29, 2024 Yield on Beginning Book Value Maturity Date Current Rate Ending Par Value EndingSecurityTypeFundBook ValueBeginningBook Value Adjusted Interest Earnings Accretion Amortization/ Earnings Adjusted InterestAnnualized YieldCUSIPInvestment #Interest Earned Fund: Treasury Fund 2,740,367.4723922,751,000.00 0.375FAC09/23/2025 859.69 567.57 1,427.260.656992,739,799.903137EAEX3 3,000,000.0024083,000,000.00 5.125MC111/22/2024 12,812.50 0.00 12,812.505.375993,000,000.003134GY3P5 3,000,000.0024063,000,000.00 5.000MC104/25/2025 12,500.00 0.00 12,500.005.244993,000,000.003134GX6A7 1,041,042.7923911,045,000.00 0.375FAC09/23/2025 326.57 211.24 537.810.650991,040,831.553137EAEX3 2,010,267.0223932,000,000.00 1.625FAC01/07/2025 2,708.33 -1,006.57 1,701.761.065992,011,273.593135G0X24 1,978,846.1923942,000,000.00 0.500FAC11/07/2025 833.34 1,047.22 1,880.561.197991,977,798.973135G06G3 7,919,651.1124168,000,000.00 1.750FAC07/02/2024 11,666.67 19,921.21 31,587.885.033997,899,729.903135GOV75 2,999,008.8724003,000,000.00 3.375FAC06/14/2024 8,437.50 288.68 8,726.183.663992,998,720.193130AT4D6 2,000,000.0023962,000,000.00 2.000MC103/28/2024 3,333.33 0.00 3,333.332.098992,000,000.003130ARE31 0.0023980.00 2.650MC102/16/2024 2,208.33 0.00 2,208.332.687992,000,000.003130ARWD9 3,000,000.0024013,000,000.00 3.700MC106/13/2024 9,250.00 0.00 9,250.003.881993,000,000.003130AT4S3 4,000,000.0024174,000,000.00 5.000FAC02/28/2025 16,666.67 0.00 16,666.675.244994,000,000.003130AV7L0 2,999,663.6524043,000,000.00 4.375FAC09/13/2024 10,937.50 52.56 10,990.064.611992,999,611.093130ATND5 1,998,168.4223952,000,000.00 1.080MC107/26/2024 1,800.00 378.95 2,178.951.373991,997,789.473130AQL68 2,950.0090032,950.00PA1 0.00 0.00 0.00992,950.00PETTY CASH 580,816.249004580,816.24 1.000PA1 1,113.61 0.00 1,113.611.43399978,045.73OPERATING 50,130.41901450,130.41PA1 0.00 0.00 0.009932,725.74FLEX ACCT 41,315,776.04900141,315,776.04 4.122LA1 126,484.14 0.00 126,484.144.1499938,365,776.04LAIF 13,382.03900513,382.03PA1 0.00 0.00 0.0099371,238.68PAYROLL 2,997,853.9324103,000,000.00 4.250FAC12/20/2024 10,625.00 222.77 10,847.774.555992,997,631.163133EN4N7 2,998,008.5124243,000,000.00 4.875FAC07/28/2025 12,187.50 117.84 12,305.345.166992,997,890.673133EPRS6 2,996,874.4024053,000,000.00 4.375FAC10/17/2024 10,937.50 414.90 11,352.404.768992,996,459.503133ENS43 2,996,917.9224023,000,000.00 4.250FAC09/30/2025 10,625.00 162.50 10,787.504.531992,996,755.423133ENP95 1,996,826.9023972,000,000.00 2.750FAC04/25/2025 4,583.33 229.94 4,813.273.034991,996,596.963133ENVC1 2,987,085.1324183,000,000.00 4.750TRC07/31/2025 11,353.03 724.43 12,077.465.090992,986,360.7091282CHN4 2,961,365.0324193,000,000.00 3.875TRC03/31/2025 9,211.06 2,836.49 12,047.555.125992,958,528.5491282CGU9 15,643,984.94900715,643,984.94 4.070LA3 50,587.93 0.00 50,587.934.0709915,643,984.94SD COUNTY POOL 586,406.509016586,406.50 5.170PA2 3,386.46 0.00 3,386.469.33799456,496.17OWD TRUST & CUS 27,699.14901127,699.14 5.260PA2 115.76 0.00 115.765.2839927,576.91RESERVE 10 BABS 12,816.22901012,816.22 5.260PA2 53.56 0.00 53.565.2839912,759.67RESERVE-10A WRB Portfolio OTAY NL! APData Updated: SET_PM1: 03/20/2024 14:03 Run Date: 03/20/2024 - 14:03 IE (PRF_IE) 7.3.11 Report Ver. 7.3.11 Maturity Date Current Rate Ending Par Value EndingSecurityTypeFund Page 2 Book ValueBeginningBook Value Adjusted Interest Earnings Accretion Amortization/ Earnings Adjusted Interest February 1, 2024 - February 29, 2024 Interest Earnings Month End Annualized YieldCUSIPInvestment #Interest Earned 117,029,961.52Subtotal 116,855,908.86 4.004 371,774.0426,169.73345,604.31116,487,331.49 117,029,961.52Total 116,855,908.86 4.004 371,774.0426,169.73345,604.31116,487,331.49 Portfolio OTAY NL! APData Updated: SET_PM1: 03/20/2024 14:03 Run Date: 03/20/2024 - 14:03 IE (PRF_IE) 7.3.11 Report Ver. 7.3.11 Month End Amortization Schedule February 1, 2024 - February 29, 2024 Sorted By Fund - Fund Original Premium or Discount Maturity Date Current Rate Beginning Par Value Ending Book Value Amount Amortized This PeriodAmort. DateFund Amounts Amortized And Unamortized As of 02/01/2024 Amt Amortized Through 02/29/2024 Amount Unamortized Through 02/29/2024 Investment # Issuer Purchase Principal Treasury Fund -8,270.0023972,000,000.00 2.750 04/25/2025 1,996,826.90 4,866.96 -3,403.04 99 229.94 -3,173.101,991,730.00 Federal Farm Credit Bank 5,096.90 -5,850.0024023,000,000.004.25009/30/2025 2,996,917.92 2,605.42-3,244.5899 162.50 -3,082.082,994,150.00Federal Farm Credit Bank 2,767.92 -9,930.0024053,000,000.004.37510/17/2024 2,996,874.40 6,389.50-3,540.5099 414.90 -3,125.602,990,070.00Federal Farm Credit Bank 6,804.40 -5,346.6024103,000,000.004.25012/20/2024 2,997,853.93 2,977.76-2,368.8499 222.77 -2,146.072,994,653.40Federal Farm Credit Bank 3,200.53 -2,400.0024243,000,000.00 4.875 07/28/2025 2,998,008.51 290.67 -2,109.33 99 117.84 -1,991.492,997,600.00 Federal Farm Credit Bank 408.51 -11,280.0023952,000,000.001.08007/26/2024 1,998,168.42 9,069.47-2,210.5399 378.95 -1,831.581,988,720.00Federal Home Loan Bank 9,448.42 -6,120.0024003,000,000.003.37506/14/2024 2,999,008.87 4,840.19-1,279.8199 288.68 -991.132,993,880.00Federal Home Loan Bank 5,128.87 -1,200.0024043,000,000.004.37509/13/2024 2,999,663.65 811.09-388.9199 52.56 -336.352,998,800.00Federal Home Loan Bank 863.65 -10,188.7523911,045,000.00 0.375 09/23/2025 1,041,042.79 6,020.30 -4,168.45 99 211.24 -3,957.211,034,811.25 Federal Home Loan Mortgage 6,231.54 -27,262.4123922,751,000.000.37509/23/2025 2,740,367.47 16,062.31-11,200.1099 567.57 -10,632.532,723,737.59Federal Home Loan Mortgage 16,629.88 37,176.0023932,000,000.001.62501/07/2025 2,010,267.02 -25,902.4111,273.5999 -1,006.57 10,267.022,037,176.00Federal National Mortage Assoc -26,908.98 -48,940.0023942,000,000.000.50011/07/2025 1,978,846.19 26,738.97-22,201.0399 1,047.22 -21,153.811,951,060.00Federal National Mortage Assoc 27,786.19 -262,960.0024168,000,000.00 1.750 07/02/2024 7,919,651.11 162,689.90 -100,270.10 99 19,921.21 -80,348.897,737,040.00 Federal National Mortage Assoc 182,611.11 -15,937.5024183,000,000.004.75007/31/2025 2,987,085.13 2,298.20-13,639.3099 724.43 -12,914.872,984,062.50US TREASURY 3,022.63 -49,687.5024193,000,000.003.87503/31/2025 2,961,365.03 8,216.04-41,471.4699 2,836.49 -38,634.972,950,312.50US TREASURY 11,052.53 -428,196.76 26,169.73Subtotal43,621,947.34 227,974.37 -200,222.39 -174,052.6643,367,803.24 254,144.10 -428,196.76 26,169.7343,621,947.34 227,974.37 -200,222.39 -174,052.6643,367,803.24Total 254,144.10 Portfolio OTAY NL! APData Updated: SET_PM1: 03/20/2024 14:03 Run Date: 03/20/2024 - 14:03 AS (PRF_ASW) 7.3.11 Report Ver. 7.3.11 Check Total 1,903.76 290.60 4,093.90 4,093.90 DISINFECTION SYS IMPROVE (JAN 2024) 7,274.00 7,274.00 2061493 03/20/24 21705 CHAMBERS GROUP INC 37028 02/22/24 ENVIRONMENTAL SERVICES (JAN 2024) 2061429 03/06/24 15177 CAROLLO ENGINEERS INC FB47540 02/12/24 770.00 2061428 03/06/24 02401 CAJON VALLEY UNION SCHOOL DIST 24107 02/20/24 WATER CONSERVATION BUS TRANSPORT 344.90 344.90 6,919.26 6,919.26 2061492 03/20/24 03005 BURKE WILLIAMS & SORENSEN LLP 316753 02/29/24 LEGAL CONSULTING SERVICES FOR MOU 770.00 ARMORED TRANSPORTATION SERVICES FY24 297.94 297.94 2061491 03/20/24 08156 BROWNSTEIN HYATT FARBER 978391 03/15/24 LEGISLATIVE ADVOCACY CONSULTING SERV 2061469 03/13/24 21775 BRINKS INC 12558222 03/01/24 229.99 2061461 03/13/24 22277 BRETT CARPENTER Ref002728853 03/11/24 UB Refund Cst #0000030040 44.25 44.25 8,749.50 8,749.50 2061427 03/06/24 06970 BATTIKHA, SAM SB030424 03/04/24 TUITION REIMBURSEMENT 229.99 ARCGIS UTILITY NETWORK ASSESSMENT 7,125.00 7,125.00 2061490 03/20/24 20125 AZTEC LANDSCAPING INC J1725 02/29/24 CY24 JANITORIAL SERVICES 2061426 03/06/24 22237 AXIM GEOSPATIAL LLC 14901 02/09/24 4,243.47 2061489 03/20/24 22237 AXIM GEOSPATIAL LLC 15119 03/13/24 ARCGIS UTILITY NETWORK ASSESSMENT 8,000.00 8,000.00 73,188.12 73,188.12 2061425 03/06/24 07785 AT&T 000021242900 02/12/24 TELEPHONE SERVICES (1/12/2024 - 2/11/2024) 4,243.47 EXPENSE REIMBURSEMENT 268.39 268.39 2061488 03/20/24 17264 ARTIANO SHINOFF ABED 308281 03/14/24 PROF SERV - FEB 2024 719502 03/06/24 BILLING ADMINISTRATION 80.00 2061405 02/28/24 22308 ANTONIO BETTENCOURT 022024 02/12/24 253.50 253.50 2061468 03/13/24 22138 AMERIFLEX 714097 03/06/24 BILLING ADMINISTRATION 210.60 FIRE ALARM ANNUAL SERVICES FY24 392.00 392.00 2061487 03/20/24 06261 ALCANTARA, CYNTHIA 031824 03/18/24 EXPENSE REIMBURSEMENT 2061404 02/28/24 18296 ALBIREO ENERGY LLC PIN0033676 02/16/24 9146891366 02/13/24 AS-NEEDED AQUA AMMONIA FY24 520.99 9146891368 02/13/24 AS-NEEDED AQUA AMMONIA FY24 192.92 1,323.91 1,323.91 2061424 03/06/24 07732 AIRGAS SPECIALTY PRODUCTS INC 9146891367 02/13/24 AS-NEEDED AQUA AMMONIA FY24 1,189.85 SHAREPOINT & INTRANET SUPP SVCS FY24 525.00 525.00 2061486 03/20/24 18122 ACC BUSINESS 240487465 02/27/24 INTERNET CIRCUITS (FEB 2024) 2061467 03/13/24 08488 ABLEFORCE INC 12197 03/04/24 614.78 2061466 03/13/24 20796 ABC IMAGING I22417815 02/29/24 REPROGRAPHIC SERVICES 3,322.76 3,322.76 Amount 2061423 03/06/24 15416 24 HOUR ELEVATOR INC 162132 03/01/24 ELEVATOR GENERAL MAINTENANCE FY24 614.78 CHECK REGISTER Otay Water District Date Range: 2/22/2024 - 3/20/2024 Check # Date Vendor Vendor Name Invoice Inv. Date Description 46,115.25 1,180.00 130.00 5,898.60 MILEAGE REIMBURSEMENT 172.92 172.92 193E638400224 03/04/24 SHUT DOWN TEST (2/21/24) 113.00 2061499 03/20/24 03098 CROUCHER, GARY D 110123113023 11/30/23 193E638320224 03/04/24 DEVELOPER INSPECTION (2/20/24) 113.00 193E602500224 03/04/24 DEVELOPER INSPECTION (2/20/24) 113.00 193E640400224 03/04/24 SHUT DOWN TEST (2/22/24) 226.00 193E640500224 03/04/24 SHUT DOWN TEST (2/22/24) 226.00 193E640280224 03/04/24 SHUT DOWN TEST (2/2/24) 226.00 193E640390224 03/04/24 SHUT DOWN TEST (2/21/24) 226.00 193E602240224 03/04/24 SHUT DOWN TEST (2/22/24) 226.00 193E639650224 03/04/24 SHUT DOWN TEST (2/1/24) 226.00 193E640450224 03/04/24 SHUT DOWN TEST (2/23/24) 226.00 193E640480224 03/04/24 SHUT DOWN TEST (2/28/24) 226.00 193E640430224 03/04/24 SHUT DOWN TEST (2/23/24) 226.00 193E640440224 03/04/24 SHUT DOWN TEST (02/23/24) 226.00 193E640410224 03/04/24 DEVELOPER INSPECTION (2/22/24) 226.00 193E640420224 03/04/24 SHUT DOWN TEST (2/23/24) 226.00 193E640350224 03/04/24 SHUT DOWN TEST (2/2/24;2/29/24) 339.00 193E640190224 03/04/24 SHUT DOWN TEST (11/1/23) 293.80 193E640550224 03/04/24 SHUT DOWN TEST (3/4/24) 361.60 193E638520224 03/04/24 DEVELOPER INSPECTION (2/26/24) 339.00 DEVELOPER INSPECTION (2/6/24) 1,017.00 193E640360224 03/04/24 DEVELOPER INSPECTION (2/14/24) 497.20 2137021024 02/10/24 UPFP PERMIT RENEWAL (2/10/24) 10.00 2061498 03/20/24 00184 COUNTY OF SAN DIEGO 193E632110224 03/04/24 UPFP PERMIT RENEWAL (2/10/24) 110.00 7737020824 02/08/24 UPFP PERMIT RENEWAL (2/8/24) 10.00 2061470 03/13/24 00184 COUNTY OF SAN DIEGO 3584021024 02/10/24 276.00 2061431 03/06/24 00099 COUNTY OF SAN DIEGO OTAYMWD1223 01/18/24 EXCAVATION PERMITS (DEC 2023) 219.00 219.00 540.75 540.75 2061497 03/20/24 00099 COUNTY OF SAN DIEGO OTAYMWD0124 02/22/24 EXCAVATION PERMITS (JAN 2024) 276.00 WORKTERRA OVERPAYMENT REFUND 3.96 3.96 2061496 03/20/24 15049 CORELOGIC SOLUTIONS LLC 82205443 02/29/24 DATA SERVICES - REALQUEST PROP DATA 35038 02/29/24 BACTERIOLOGICAL TESTING (3/13/24) 165.00 2061430 03/06/24 01720 COOPER, DENNIS S DC022924 02/29/24 35040 02/29/24 BACTERIOLOGICAL TESTING (2/15/24) 250.00 35039 02/29/24 BACTERIOLOGICAL TESTING (2/13/24) 225.00 BACTERIOLOGICAL TESTING (2/13/24) 270.00 35041 02/29/24 BACTERIOLOGICAL TESTING (2/21/24) 270.00 1000376083 01/23/24 WATER DELIVERIES (OCT 2023) 1,116.55 2061495 03/20/24 04119 CLARKSON LAB & SUPPLY INC 35037 02/29/24 2061494 03/20/24 00234 CITY TREASURER 1000376084 01/23/24 WATER DELIVERIES (NOV 2023) 44,998.70 1,335.06 12,407.68 6,683.32 11,017.87 02/20/24 12,104.18 12,104.18 AETNA EMPLOYEE ASSISTANCE PROGRAM 195.64 195.64 2061506 03/20/24 02008 HELIX ENVIRONMENTAL 122113 02/22/24 ENVIRONMENTAL SERVICES (FEB 2024) 943690 02/22/24 AS-NEEDED SODIUM HYPOCHLORITE FY24 770.13 2061438 03/06/24 22165 HEALTH AND HUMAN RESOURCE 030124 03/01/24 944942 02/29/24 AS-NEEDED SODIUM HYPOCHLORITE FY24 2,192.36 944939 02/29/24 AS-NEEDED SODIUM HYPOCHLORITE FY24 1,020.94 AS-NEEDED SODIUM HYPOCHLORITE FY24 4,721.10 943691 02/22/24 AS-NEEDED SODIUM HYPOCHLORITE FY24 2,313.34 2061505 03/20/24 19978 HASA INC. 944941 02/29/24 941804 02/08/24 AS-NEEDED SODIUM HYPOCHLORITE FY24 714.07 941802 02/08/24 AS-NEEDED SODIUM HYPOCHLORITE FY24 501.62 2,850.37 941803 02/08/24 AS-NEEDED SODIUM HYPOCHLORITE FY24 1,333.71 942775 02/15/24 AS-NEEDED SODIUM HYPOCHLORITE FY24 1,283.55 HACH CHEMKEY REAGENTS FY24 9,117.03 9,117.03 2061437 03/06/24 19978 HASA INC. 942774 02/15/24 AS-NEEDED SODIUM HYPOCHLORITE FY24 2061407 02/28/24 00174 HACH COMPANY 13912142 02/06/24 161.63 2061504 03/20/24 22275 GEM TEAM INC 2238 03/01/24 FY24 NODEZERO SOFTWARE/SUBSCRIPTION 9,885.00 9,885.00 99.00 99.00 2061472 03/13/24 03094 FULLCOURT PRESS 41934 02/20/24 INFORMATIONAL FLYER 161.63 INVENTORY 320.06 320.06 2061503 03/20/24 17888 FIRST AMERICAN DATA TREE LLC 9003400224 02/29/24 DOCUMENT SERVICE FY24 2061502 03/20/24 03546 FERGUSON WATERWORKS # 1083 0847873 02/26/24 0845381 02/09/24 9" X 14" METER BOX LIDS DFW 4,019.19 0847588 02/15/24 INVENTORY 899.86 29.10 29.10 2061436 03/06/24 03546 FERGUSON WATERWORKS # 1083 0845695 02/16/24 PARTS FOR 485 RESERVOIR 7,488.63 UB Refund Cst #0000291787 103.57 103.57 2061399 02/28/24 22303 FARAH DAWOOD Ref002726482 02/26/24 UB Refund Cst #0000281725 166168019 02/20/24 CY24 VISION BENEFITS ADMINISTRATION 1,383.23 2061398 02/28/24 22307 EZEQUIEL QUIRINO GARZA Ref002726486 02/26/24 REFUND 17,767.55 17,767.55 2061435 03/06/24 20511 EYEMED (FIDELITY) 166168581 RETRO CREDIT PO 722658 -48.17 2061406 02/28/24 16093 ENRIQUE OCAMPO MTR22018022224 02/22/24 4,100.00 2061471 03/13/24 22328 ENRIQUE COVARRUBIAS 4639030924 03/11/24 CUSTOMER REFUND 403.83 403.83 165.08 165.08 2061501 03/20/24 03765 ENGINEERING PARTNERS INC 20A2240195 02/29/24 ELECTRICAL ENG SERV (FEB 2024) 4,100.00 RECYCLED WASTE SERVICE FY24 258.18 258.18 2061462 03/13/24 22323 EMILIA CHEIKKA Ref002728854 03/11/24 UB Refund Cst #0000045746 2061434 03/06/24 02447 EDCO DISPOSAL CORPORATION 5458 022924 02/29/24 500.00 2061433 03/06/24 02869 DOBRAWA, STEPHEN SD022924 02/29/24 WORKTERRA OVERPAYMENT REFUND 137.94 137.94 11,773.62 11,773.62 2061432 03/06/24 04497 D & R CRANE INC 16835 02/15/24 CRANE QUARTERLY PM SERVICE INSPECT 500.00 2061500 03/20/24 18756 CULTURA 16462 02/02/24 PUBLIC SERVICES WORKSTATIONS 30,383.75 17,767.31 21,838.84 115.91 939.61 939.61 ADMIN LANDSCAPE UPGRADE MAINTENANCE 900.00 900.00 2061445 03/06/24 01824 MERKEL & ASSOCIATES INC 24021910 02/19/24 SMA HABITAT MANAGEMENT (DEC 2023) 2061514 03/20/24 21723 MERINO LANDSCAPE INC 11275 02/29/24 17.38 2061412 02/28/24 22304 MCCARTHY BUILDING CO INC Ref002726483 02/26/24 UB Refund Cst #0000284167 1,367.69 1,367.69 50.30 50.30 2061463 03/13/24 22322 MARCELINO JIMENEZ Ref002728852 03/11/24 UB Refund Cst #0000025077 17.38 WORKTERRA OVERPAYMENT REFUND 27.72 27.72 2061401 02/28/24 22306 MANUEL RUIZ Ref002726485 02/26/24 UB Refund Cst #0000285178 02/27/24 TRAVEL/MEAL ADVANCEMENT 188.00 188.00 2061444 03/06/24 03385 MAGANA, MANNY MM022924 02/29/24 75.04 020124022924 03/18/24 MILEAGE REIMBURSEMENT 40.87 2061443 03/06/24 07591 MA, DONGXING DM022724 ADVANCEMENT 189.00 189.00 2061513 03/20/24 03019 LOPEZ, JOSE 010124012524 01/25/24 MILEAGE REIMBURSEMENT 2061411 02/28/24 21255 LONG, MICHAEL 022624 02/26/24 2,950.00 2061512 03/20/24 17969 LONDON MOEDER ADVISORS 2339 03/04/24 ECONOMIC OUTLOOK STUDY FY24-30 11,250.00 11,250.00 1,265.46 1,265.46 2061410 02/28/24 21524 LINDSAY POLIC CONSULTING INC 4011 02/26/24 HEALTH AND SAFETY CONSULT SUPPORT 2,950.00 RETAINAGE RELEASE 930.91 930.91 2061409 02/28/24 22300 LENNAR HOMES OF CA INC Ref002726479 02/26/24 UB Refund Cst #0000264708 2061408 02/28/24 05840 KIRK PAVING INC 23-119-8R 09/27/23 90.07 2061442 03/06/24 05840 KIRK PAVING INC 23-172-1 02/07/24 EMERGENCY AS-NEEDED PAVING 23,898.01 23,898.01 119.45 119.45 2061441 03/06/24 22129 KEPT COMPANIES INC Q167672 02/16/24 AS-NEEDED FLEET WASHING SERVICES FY24 90.07 UB Refund Cst #0000266949 97.94 97.94 2061511 03/20/24 22129 KEPT COMPANIES INC Q170122 02/23/24 AS-NEEDED FLEET WASHING SERVICES FY24 2061400 02/28/24 22301 KELSI BROCK Ref002726480 02/26/24 660.64 2061510 03/20/24 21926 KEENAN & ASSOCIATES 301696 03/01/24 BENEFIT BROKERAGE & CONSULTING SERV 6,625.00 6,625.00 2,243.00 2,243.00 2061473 03/13/24 22329 JOSEPH FERNANDEZ 7029031224 03/12/24 CUSTOMER REFUND 660.64 SCRUBBER ANNUAL SERVICE 2,855.00 2,855.00 2061440 03/06/24 20752 IWG TOWERS ASSETS II LLC 4512743 03/01/24 ANTENNA SUBLEASE FY24 256150 01/31/24 BILL PROCESSING SERVICES FY24 1,954.44 2061509 03/20/24 15368 INTEGRITY MUNICIPAL SYSTEMS 12755 02/28/24 257039 02/15/24 BILL PROCESSING SERVICES FY24 2,593.78 255411 01/19/24 BILL PROCESSING SERVICES FY24 2,116.29 BILL PROCESSING SERVICES FY24 7,680.97 255412 01/19/24 BILL PROCESSING SERVICES FY24 7,493.36 2061439 03/06/24 08969 INFOSEND INC 256151 01/31/24 BILL PROCESSING SERVICES FY24 13,816.94 257922 02/29/24 BILL PROCESSING SERVICES FY24 3,950.37 20240047 03/03/24 PROJECT FUNDING SERV (12/28/23-2/29/24) 4,356.25 2061508 03/20/24 08969 INFOSEND INC 257923 02/29/24 2061507 03/20/24 20950 HOCH CONSULTING APC 20240046 03/04/24 GRANT WRITING (1/1/24-2/29/24) 26,027.50 6,150.91 5,100.00 7,771.10 12,578.74 10,351.99 68.43 2061448 03/06/24 04542 ROBAK, MARK MR022924 02/29/24 WORKTERRA OVERPAYMENT REFUND 223.29 223.29 744.67 744.67 2061525 03/20/24 22330 RG ESCAYA 7900031924 03/19/24 CUSTOMER REFUND 68.43 RANDOM DRUG TESTING 125.00 125.00 2061524 03/20/24 19836 RED WING BUSINESS ADV ACCOUNT 20240310069504 03/10/24 AS-NEEDED SAFETY BOOTS FY24 2061523 03/20/24 22238 RCDA LLC 4130 02/28/24 255.00 2061415 02/28/24 20836 PSI WATER TECHNOLOGIES INC 0007589 02/06/24 BLUE-WHITE PUMP PARTS 678.22 678.22 273.86 273.86 2061522 03/20/24 15081 PINOMAKI DESIGN 6326 03/01/24 AS-NEEDED GRAPHIC DESIGN SERVICES FY24 255.00 UB Refund Cst #0000257143 76.20 76.20 2061476 03/13/24 22327 PINNACLE NEW HOMES LLC Ref002728858 03/11/24 UB Refund Cst #0000284199 2061475 03/13/24 22324 PINNACLE NEW HOMES LLC Ref002728855 03/11/24 26.49 2061521 03/20/24 13122 PINNACLE BUSINESS SOLUTIONS 42601 03/06/24 NETWORK EQUIPMENT 8,242.88 8,242.88 43.03 43.03 2061464 03/13/24 22326 PETER NAJOR Ref002728857 03/11/24 UB Refund Cst #0000283868 26.49 LAND SURVEYING (FEB 2024) 5,392.00 5,392.00 2061403 02/28/24 22299 PATRICK POST Ref002726478 02/26/24 UB Refund Cst #0000260257 S100460681.002 02/28/24 INVENTORY 220.96 2061520 03/20/24 21783 PARADIGM GEOSPATIAL INC 240303 03/06/24 S100460855.001 02/28/24 INVENTORY 1,418.51 S100460681.001 03/04/24 INVENTORY 1,104.81 INVENTORY 5,041.95 S100460623.001 02/26/24 INVENTORY 2,565.76 2061519 03/20/24 01002 PACIFIC PIPELINE SUPPLY INC S100461134.001 03/06/24 8,723.44 S100456397.002 02/21/24 INVENTORY 2,209.63 S100460229.001 02/08/24 INVENTORY 1,645.67 RUSSELL SQUARE PUMP PIPES 4,700.00 4,700.00 2061447 03/06/24 01002 PACIFIC PIPELINE SUPPLY INC S100458048.002 02/21/24 INVENTORY 11201 03/01/24 IN-PLANT INSPECTION SERVICES (FEB 2024) 2,353.78 2061474 03/13/24 19636 OT ELECTRICAL 10289 03/05/24 2,232.50 2061518 03/20/24 16834 ON-SITE TECHNICAL SVCS INC 11202 03/01/24 IN-PLANT INSPECTION SERVICES (FEB 2024) 5,417.32 53.41 53.41 2061517 03/20/24 18332 NV5 INC 375575 02/23/24 DESIGN RSD/JAMUL PL (JAN 2024) 2,232.50 GEOTECHNICAL SERVICES (JAN 2024) 745.00 745.00 2061402 02/28/24 22302 NOEMI LOPEZ Ref002726481 02/26/24 UB Refund Cst #0000268596 1178 01/30/24 CPANEL LICENSES 480.00 2061446 03/06/24 00761 NINYO & MOORE GEOTECHNICAL 284158 02/15/24 9,999.00 9,999.00 2061414 02/28/24 18172 NIGHTCODERS 1179 12/30/23 MOBILE APP DEVELOPMENT 4,620.00 REFUND 2,445.56 2,445.56 2061516 03/20/24 17261 NATURESCAPE SERVICES 8230 02/29/24 CY24 LANDSCAPE MAINTENANCE SERVICES 40778237 02/16/24 EMERSON ROSEMOUNT FLOW METER 763.47 2061413 02/28/24 22297 MORRIS MALAKHA ANX23004022224 02/22/24 2061515 03/20/24 18773 MICRO MOTION INC 40778559 02/20/24 EMERSON ROSEMOUNT FLOW METER 5,387.44 803.20 106,355.60 93,779.08 854.30 981.47 DECOMPOSED GRANITE 584.78 400061 01/04/24 DECOMPOSED GRANITE 396.69 2061420 02/28/24 02750 SUPERIOR READY MIX LP 403451 01/19/24 405619 02/07/24 DECOMPOSED GRANITE FEBRUARY 98.37 408226 02/21/24 DECOMPOSED GRANITE FEBRUARY 92.44 291.09 406114 02/12/24 DECOMPOSED GRANITE FEBRUARY 187.03 406113 02/12/24 DECOMPOSED GRANITE FEBRUARY 185.37 DECOMPOSED GRANITE FEBRUARY 99.67 99.67 2061481 03/13/24 02750 SUPERIOR READY MIX LP 406002 02/08/24 DECOMPOSED GRANITE FEBRUARY 2061530 03/20/24 02750 SUPERIOR READY MIX LP 408307 02/22/24 90.00 2061529 03/20/24 15974 SUN LIFE FINANCIAL 38166030124 03/01/24 LIFE & STD/LTD INSURANCE (CY2024) 11,316.35 11,316.35 140.09 140.09 2061528 03/20/24 05755 STATE WATER RESOURCES FC27789 03/15/24 CERTIFICATION RENEWAL 90.00 MILEAGE REIMBURSEMENT 29.48 29.48 2061453 03/06/24 16229 SMITH, TIMOTHY TS022924 02/29/24 WORKTERRA OVERPAYMENT REFUND 2061480 03/13/24 16229 SMITH, TIMOTHY 020124022924 02/29/24 2,032.50 2061419 02/28/24 22298 SLF IV - MILLENIA LLC Ref002726477 02/26/24 UB Refund Cst #0000224652 1,415.22 1,415.22 6,950.19 6,950.19 2061527 03/20/24 22201 SHAW HR CONSULTING INC. 010683 02/20/24 HR/EMPLOYMENT RELATIONS CONSULT SERV 2,032.50 ON-DEMAND SECURITY RESPONSE FY24 605.00 605.00 2061418 02/28/24 21556 SEMITORR GROUP INC DBA 5597944 02/12/24 PUMP FOR COTTONWOOD 02/17/24 24" BUTTERFLY VALVE 9,556.88 9,556.88 2061452 03/06/24 19603 SECURITAS SECURITY SVC USA INC 11635408 02/29/24 89,842.92 031124 03/11/24 UTILITY EXPENSES (MONTHLY) 3,936.16 2061451 03/06/24 13418 SAN DIEGO POWDER COATING 78745 UTILITY EXPENSES (MONTHLY) 16,966.72 16,966.72 2061526 03/20/24 00121 SAN DIEGO GAS & ELECTRIC 030824 03/08/24 UTILITY EXPENSES (MONTHLY) 022924 02/29/24 UTILITY EXPENSES (MONTHLY) 35.12 2061479 03/13/24 00121 SAN DIEGO GAS & ELECTRIC 030424 03/04/24 022624 02/26/24 UTILITY EXPENSES (MONTHLY) 783.28 022624A 02/26/24 UTILITY EXPENSES (MONTHLY) 245.36 65,889.24 022724 02/27/24 UTILITY EXPENSES (MONTHLY) 33,228.43 022924A 02/29/24 UTILITY EXPENSES (MONTHLY) 6,174.17 UTILITY EXPENSES (MONTHLY) 34,914.09 34,914.09 2061450 03/06/24 00121 SAN DIEGO GAS & ELECTRIC 022824 02/28/24 UTILITY EXPENSES (MONTHLY) 0000002642 01/09/24 SOCAL WATERSMART HEW HET WBIC FY24 400.15 2061417 02/28/24 00121 SAN DIEGO GAS & ELECTRIC 022124 02/21/24 275.00 2061478 03/13/24 00003 SAN DIEGO COUNTY WATER AUTH 0000002651 02/14/24 SOCAL WATERSMART HEW HET WBIC FY24 403.05 125.00 125.00 2061449 03/06/24 00003 SAN DIEGO COUNTY WATER AUTH 061 01/24/24 BUSINESS MEETING 275.00 UB Refund Cst #0000284953 8.70 8.70 2061477 03/13/24 02586 SAN DIEGO COUNTY ASSESSOR 202400166 03/01/24 MONTHLY ASSESSOR DATA FY24 2061416 02/28/24 22305 ROCKEFELLER GROUP Ref002726484 02/26/24 25,368.08 873.52 873.52 1,294.73 24,151.50 137 Checks ZENNER FHZ20 HYDRANT METERS 9,260.74 9,260.74 Amount Pd Total: 1,069,726.76 Check Grand Total: 1,069,726.76 2061534 03/20/24 15751 ZENNER PERFORMANCE METERS INC 0085946 02/29/24 178121 01/31/24 ENGINEERING DESIGN SERVICES (JAN 2024) 9,305.00 17642664036186 11/30/23 HYDRAULIC MODELING (NOV 2023) 4,230.00 1,860.00 1,860.00 2061460 03/06/24 19866 WOOD RODGERS INC 1772106804 12/31/23 ENGINEERING DESIGN SERVICES (DEC 2023) 10,616.50 WATER INTERNS - D VILCHIS PE 031024 428.84 428.84 2061485 03/13/24 19866 WOOD RODGERS INC 177945 01/31/24 HYDRAULIC MODELING (JAN 2024) 46431362 02/25/24 WATER INTERNS - D VILCHIS PE 022524 434.88 2061533 03/20/24 20909 VOLT WORKFORCE SOLUTIONS 46458967 03/10/24 434.88 2061459 03/06/24 20909 VOLT WORKFORCE SOLUTIONS 46419861 02/18/24 WATER INTERNS - D VILCHIS PE 021824 859.85 4,080.00 4,080.00 2061484 03/13/24 20909 VOLT WORKFORCE SOLUTIONS 46448209 03/03/24 WATER INTERNS - D VILCHIS PE 030324 434.88 FY24 LEAK DETECTION SERVICES 24,794.00 24,794.00 2061458 03/06/24 08028 VALLEY CONSTRUCTION MANAGEMENT SD545804 02/09/24 CMIS (JAN 2024) 2061483 03/13/24 18517 UTILITY SERVICES ASSOC LLC 126676 03/01/24 PORT. TOILET RENTAL FY24 727.05 4169491 02/06/24 PORT. TOILET RENTAL FY24 146.47 4307938 03/05/24 PORT. TOILET RENTAL FY24 146.47 2061422 02/28/24 15675 UNITED SITE SERVICES INC 4172384 02/06/24 29,014.90 2061482 03/13/24 15675 UNITED SITE SERVICES INC 4305406 03/05/24 PORT. TOILET RENTAL FY24 727.05 687.25 687.25 2061457 03/06/24 20409 UNIFIED FIELD SERVICES CORP 910312023 02/13/24 RES INT/EXT UPGRADES (OCT 2023) 29,014.90 WORKTERRA OVERPAYMENT REFUND 174.78 174.78 2061532 03/20/24 00427 UNDERGROUND SERVICE ALERT 220240508 03/01/24 UNDERGROUND ALERT TICKETS FY24 2061456 03/06/24 01810 UNDEN, GEORGE E GU022924 02/29/24 7.17 2061421 02/28/24 03261 TYLER TECHNOLOGIES INC 045-455658 02/08/24 MUNIS ERP SOFTWARE AS A SERVICE FEES 168,778.50 168,778.50 2,000.00 2,000.00 2061455 03/06/24 01976 TOM BOHNSACK TB022924 02/29/24 WORKTERRA OVERPAYMENT REFUND 7.17 UB Refund Cst #0000257901 20.69 20.69 2061531 03/20/24 18376 SVPR COMMUNICATIONS LLC 1679 02/29/24 COMMUNICATIONS CONSULT SVCS 2061465 03/13/24 22325 SUSANA HOIST Ref002728856 03/11/24 UNLEADED & DIESEL FUEL 15,615.34 434395 02/15/24 UNLEADED & DIESEL FUEL 9,752.74 2061454 03/06/24 10339 SUPREME OIL COMPANY 434330 02/15/24